NOTES PAYABLE

The following table summarizes the Company's note payable balance at June 30, 2016 and December 31, 2015 ($ in thousands):



	June 30, 2016			December 31, 2015
Notes payable	$	779,704		$	721,293
Less: deferred financing costs of mortgage debt, net of accumulated amortization of $2,272 and $2,008 in 2016 and 2015, respectively.	(2,219		)	(2,483		)
	$	777,485		$	718,810

The following table details the terms and amounts of the Company’s outstanding notes payable at June 30, 2016 and December 31, 2015 ($ in thousands):



Description	Interest Rate		Maturity	June 30, 2016		December 31, 2015
Post Oak Central mortgage note	4.26	%	2020	$	180,046	$	181,770
Credit Facility, unsecured	1.54	%	2019	155,000		92,000
The American Cancer Society Center mortgage note	6.45	%	2017	128,440		129,342
Promenade mortgage note	4.27	%	2022	106,787		108,203
191 Peachtree Tower mortgage note	3.35	%	2018	99,677		100,000
816 Congress mortgage note	3.75	%	2024	85,000		85,000
Meridian Mark Plaza mortgage note	6.00	%	2020	24,754		24,978
				$	779,704	$	721,293

Fair Value

At June 30, 2016 and December 31, 2015, the aggregate estimated fair values of the Company's notes payable were $807.5 million and $738.1 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 and six months ended June 30, 2016 and 2015, interest expense was as follows (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Total interest incurred	$	8,350		$	8,683		$	16,506		$	17,263
Interest capitalized	(1,016		)	(814		)	(1,758		)	(1,717		)
Total interest expense	$	7,334		$	7,869		$	14,748		$	15,546

The real estate and other assets of The American Cancer Society Center (the “ACS Center”) are restricted under the ACS Center loan agreement as 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.