Discontinued Operations

All current and prior period income from the following office property dispositions are included in discontinued operations for the years ended December 31, 2013, 2012 and 2011 (in thousands).



Office Property	Location	Square Feet	Date of Sale	Net Sales Price		Net Book Value of Real Estate		Gain on Sale			Impairment Loss
233 North Michigan	Chicago, IL	1,070	05/11/2011	$	156,546	$	152,254	$	4,292		$	—
Greenbrier I & II	Hampton Roads, VA	172	07/19/2011	16,275		15,070		1,205			—
Glen Forest	Richmond, VA	81	08/16/2011	8,950		7,880		1,070			—
Tower at 1301 Gervais	Columbia, SC	298	09/08/2011	18,421		18,421		—			6,147
Wells Fargo	Houston, TX	134	12/09/2011	—		—		—			11,561
Fund I Assets	Various	1,956	12/31/2011	255,725		244,467		11,258			68,513
2011 Dispositions		3,711		$	455,917	$	438,092	$	17,825		$	86,221
Falls Pointe	Atlanta, GA	107	01/06/2012	$	5,824	$	4,467	$	1,357		$	—
111 East Wacker	Chicago, IL	1,013	01/09/2012	153,240		153,237		3			19,050
Renaissance Center	Memphis, TN	189	03/01/2012	27,661		24,629		3,032			9,200
Non-Core Assets	Various	1,932	Various	125,486		122,157		3,329			51,889
Overlook II	Atlanta, GA	260	04/30/2012	29,467		28,689		778			10,500
Wink	New Orleans, LA	32	06/08/2012	705		803		(98		)	—
Ashford Center/ Peachtree Ridge	Atlanta, GA	321	07/01/2012	29,440		28,148		1,292			17,200
Sugar Grove	Houston, TX	124	10/23/2012	10,303		7,058		3,245			—
2012 Dispositions (1)		3,978		$	382,126	$	369,188	$	12,938		$	107,839
Atrium at Stoneridge (4)	Columbia, SC	108	03/20/2013	2,966		2,424		542			3,500
Waterstone	Atlanta, GA	93	07/10/2013	3,247		3,207		40			3,000
Meridian	Atlanta, GA	97	07/10/2013	6,615		6,560		55			1,600
Bank of America Plaza	Nashville, TN	436	07/17/2013	41,093		29,643		11,450			—
Lakewood II	Atlanta, GA	123	10/31/2013	10,240		4,403		5,837			—
Carmel Crossing	Charlotte, NC	326	11/08/2013	36,673		22,104		14,569			—
2013 Dispositions (2)		1,183		$	100,834	$	68,341	$	32,493		$	8,100

Office Property	Location	Square Feet	Date of Sale	Gross Sales Price
Woodbranch	Houston, TX	109	01/17/2014	$	15,000
Mesa Corporate Center	Phoenix, AZ	106	01/31/2014	13,200
Properties Held for Sale at December 31, 2013 (3)		215		$	28,200


(1)	Total gain on the sale of real estate in discontinued operations recognized for the year ended December 31, 2012 was $12.9 million, of which $8.1 million was the Company's proportionate share.


(2)	Total gain on the sale of real estate in discontinued operations recognized during the year ended December 31, 2013 was $32.5 million, of which $18.2 million was the Company's proportionate share.


(3)	Gains and losses on assets held for sale are expected to be finalized upon sale and reflected in the year-end December 31, 2014 financial statements.


(4)	Impairment loss incurred in year ended December 31, 2012.

During 2012, the Company completed its previously disclosed dispositions as part of its strategic objective of becoming a leading owner of high-quality office assets in higher growth markets in the Sunbelt region of the United States. As previously disclosed, the Company entered into an agreement to sell its interest in 13 office properties totaling 2.7 million square feet owned by Fund I to its existing partner in the fund for a gross sales price of $344.3 million. As of December 31, 2011, Parkway had completed the sale of 9 of these 13 assets. During the year ended December 31, 2012, the Company completed the sale of the remaining four Fund I assets totaling 770,000 square feet. Accordingly, income from all Fund I properties has been classified as discontinued operations for all current and prior periods. These Fund I assets were secured by a total of $292.0 million in mortgage loans, of which $82.4 million was Parkway's share, with a weighted average interest rate of 5.6% that were assumed by the buyer upon closing. Parkway received net proceeds from the sales of the Fund I assets of $14.2 million, which were used to reduce amounts outstanding under the Company's credit facilities.

Additionally, during the year ended December 31, 2012, the Company completed the sale of the 15 properties included in its strategic sale of a portfolio of non-core assets, for a gross sales price of $147.7 million and generating net proceeds to Parkway of approximately $94.3 million, with the buyer assuming $41.7 million in mortgage loans upon sale, of which $31.9 million was Parkway's share. The 15 assets that were sold include five assets in Richmond, four assets in Memphis, and six assets in Jackson. Income from these non-core assets has been classified as discontinued operations for all current and prior periods.

The Company completed the sale of four additional assets during the year ended December 31, 2012, including the sale of 111 East Wacker, a 1.0 million square foot office property located in Chicago, Illinois, the Wink building, a 32,000 square foot office property in New Orleans, Louisiana, Sugar Grove, a 124,000 square foot office property in Houston, Texas, and Falls Pointe, a 107,000 square foot office property located in Atlanta, Georgia, and owned by Fund II for a gross sales price of $168.8 million. Parkway received approximately $14.8 million in net proceeds from these sales, which were used to reduce amounts outstanding under the Company's revolving credit facility and to fund subsequent acquisitions. In connection with the sale of 111 East Wacker, the buyer assumed a $147.9 million mortgage loan upon sale. Income from 111 East Wacker, the Wink building, Sugar Grove and Falls Pointe has been classified as discontinued operations for all current and prior periods.

On March 20, 2013, the Company sold Atrium at Stoneridge, a 108,000 square foot office property located in Columbia, South Carolina, for a gross sales price of $3.1 million and recorded a gain of $542,000 during the first quarter of 2013. The Company received $3.0 million in net proceeds from the sale, which was used to reduce amounts outstanding under the Company's senior unsecured revolving credit facility.

On July 10, 2013, the Company sold two office properties, Waterstone and Meridian, totaling 190,000 quare feet located in Atlanta, Georgia, for a gross sales price of $10.2 million and recorded an impairment loss of $4.6 million during the second quarter of 2013. The Company received $9.5 million in net proceeds from the sale, which was used to reduce amounts outstanding under the Company's senior unsecured revolving credit facility.

On July 17, 2013, the Company sold Bank of America Plaza, a 436,000 square foot office property located in Nashville, Tennessee, for a gross sales price of $42.8 million and recorded a gain of approximately $11.5 million during the third quarter of 2013. The Company received $40.8 million in net proceeds from the sale, which was used to reduce amounts outstanding under the Company's revolving credit facilities.

On October 31, 2013, the Company sold Lakewood II, a 123,000 square foot office property located in Atlanta, Georgia, for a gross sale price of $10.6 million. Parkway had a 30% ownership interest in the property, which was owned by Fund II. Parkway received approximately $3.1 million in cash, its proportionate share of net proceeds from the sale, which was used to reduce amounts outstanding under the Company's revolving credit facility. During the fourth quarter of 2013, Fund II recognized a gain on the sale of Lakewood II of approximately $5.9 million, of which approximately $1.8 million was Parkway’s share.

On November 8, 2013, Parkway sold Carmel Crossing, a 326,000 square foot office property located in Charlotte, North Carolina, for a gross sale price of $37.5 million. Parkway had a 30% ownership interest in the property, which was owned by Fund II. Parkway received approximately $7.1 million in cash, its proportionate share of net proceeds from the sale, which was used to reduce amounts outstanding under the Company's revolving credit facility. During the fourth quarter of 2013, Fund II recognized a gain on the sale of Carmel Crossing of approximately $14.6 million, of which $4.4 million was Parkway’s share, and expenses related to the prepayment of the associated mortgage loan of approximately $2.1 million, of which approximately $0.6 million was Parkway’s share.

The amount of revenues and expenses for these office properties reported in discontinued operations for the years ended December 31, 2013, 2012 and 2011 is as follows (in thousands):



	Year Ended
	December 31,
	2013			2012			2011
Statement of Operations:
Revenues
Income from office and parking properties	$	14,976		$	34,345		$	156,680
	14,976			34,345			156,680
Expenses
Office and parking properties:
Operating expenses	6,835			15,029			70,738
Management company expense	(39		)	350			288
Interest expense	485			6,143			31,477
(Gain) loss on extinguishment of debt	2,149			(1,494		)	(7,635		)
Non-cash expense on interest rate swap	—			(215		)	2,338
Depreciation and amortization	4,561			7,843			62,030
Impairment loss	10,200			3,500			189,940
	24,191			31,156			349,176
Other Income/Expenses
Equity in loss of unconsolidated joint ventures	—			(19		)	—

Income (loss) from discontinued operations	(9,215		)	3,170			(192,496		)
Gain on sale of real estate from discontinued operations	32,493			12,938			17,825
Total discontinued operations per Statement of Operations	23,278			16,108			(174,671		)
Net (income) loss attributable to noncontrolling interest from discontinued operations	(13,443		)	(4,820		)	76,218
Total discontinued operations – Parkway's Share	$	9,835		$	11,288		$	(98,453	)


Other Assets Held for Sale:	December 31, 2013
Balance sheet:
Investment property				$	17,628
Accumulated depreciation				(3,652		)
Office property held for sale				13,976
Rents receivable and other assets				2,284
Total assets held for sale				$	16,260

Accounts payable and other liabilities				566
Total liabilities held for sale				$	566