Mortgage Loans

12 Months Ended

Dec. 31, 2011

Mortgage Loans [Abstract]

Mortgage Loans

Note C - Mortgage Loans

The Company owns the B participation piece (the "B piece") of a first mortgage secured by an 844,000 square foot office building in Dallas, Texas known as 2100 Ross at an original cost of $6.9 million which was purchased in November 2007.  The B piece was originated by Wachovia Bank, N.A., a Wells Fargo Company, and has a face value of $10.0 million, a stated coupon rate of 6.065% and a scheduled maturity in May 2012.  At September 30, 2011, the Company recorded a non-cash impairment loss on the mortgage loan in the amount of $9.2 million.  The borrower is currently in default on the first mortgage and based on current information, the Company does not believe it will recover its investment in the loan.  Therefore, Parkway has written off its investment in the mortgage loan.

In connection with the sale of One Park Ten, the Company seller-financed a $1.5 million note receivable that bears interest at 7.25% per annum on an interest-only basis through maturity in June 2012.  The carrying amount of the mortgage loan was $1.5 million at December 31, 2011.