NOTES PAYABLE

The following table summarizes the terms and amounts of the Company’s notes payable at March 31, 2015 and December 31, 2014 ($ in thousands):



Description	Interest Rate		Maturity	March 31, 2015		December 31, 2014
Credit Facility, unsecured	1.28	%	2019	$	198,000	$	140,200
Post Oak Central mortgage note	4.26	%	2020	184,288		185,109
The American Cancer Society Center mortgage note	6.45	%	2017	130,630		131,083
Promenade mortgage note	4.27	%	2022	110,270		110,946
191 Peachtree Tower mortgage note	3.35	%	2018	100,000		100,000
816 Congress mortgage note	3.75	%	2024	85,000		85,000
Meridian Mark Plaza mortgage note	6.00	%	2020	25,303		25,408
The Points at Waterview mortgage note	5.66	%	2016	14,457		14,598
				$	847,948	$	792,344

Fair Value

At March 31, 2015 and December 31, 2014, the aggregate estimated fair values of the Company's notes payable were $898.3 million and $835.4 million, respectively, calculated by discounting the debt's remaining contractual cash flows at estimated rates at which similar loans could have been obtained at those respective dates. The estimate of the current market rate, which is the most significant input in the discounted cash flow calculation, is intended to replicate debt of similar maturity and loan-to-value relationship. These fair value calculations are considered to be Level 2 under the guidelines as set forth in ASC 820, Fair Value Measurement, as the Company utilizes market rates for similar type loans from third party brokers.

Other Information

For the three months ended March 31, 2015 and 2014, interest expense was as follows (in thousands):



	Three Months Ended March 31,
	2015			2014
Total interest incurred	$	8,580		$	7,540
Interest capitalized	(903		)	(373		)
Total interest expense	$	7,677		$	7,167

The real estate and other assets of The American Cancer Society Center (the “ACS Center”) are restricted under the ACS Center loan agreement in that they are not available to settle debts of the Company. However, provided that the ACS Center loan has not incurred any uncured event of default, as defined in the loan agreement, the cash flows from the ACS Center, after payments of debt service, operating expenses and reserves, are available for distribution to the Company.