XML 68 R35.htm IDEA: XBRL DOCUMENT v2.4.0.8
Capital and Financing Transactions (Tables)
 12 Months Ended
Dec. 31, 2013
Notes Payable [Abstract]  
Summary of outstanding credit facilities
At December 31, 2013, the Company had a total of $303.0 million outstanding under the following credit facilities (in thousands):
Credit Facilities
 
Lender
 
Interest Rate
 
Maturity
 
Outstanding Balance
$10.0 Million Unsecured Working Capital Revolving Credit Facility
 
PNC Bank
 
—
%
 
03/29/2016
 
$
—

$215.0 Million Unsecured Revolving Credit Facility
 
Wells-Fargo
 
2.0
%
 
03/29/2016
 
58,000

$125.0 Million Unsecured Term Loan (1)
 
Key Bank
 
2.5
%
 
09/27/2017
 
125,000

$120.0 million term loan facility (2)
 
Wells-Fargo
 
3.3
%
 
06/11/2018
 
120,000

 
 
 
 
2.7
%
 
 
 
$
303,000


(1)
Effective October 1, 2012, the Company executed two floating-to-fixed interest rate swaps associated with the Term Loan Facility totaling $125 million, locking LIBOR at 0.7% for five years. The loan bears interest at LIBOR plus the applicable spread which ranges between 150 to 225 basis points based on overall Company leverage. The current spread associated with the loan is 1.75% resulting in an all-in rate of 2.45%.
(2)
Effective June 12, 2013, the Company entered into a new floating-to-fixed interest rate swap associated with a New Term Loan Facility totaling $120 million, locking LIBOR at 1.6% for five years. The loan bears interest at LIBOR plus the applicable spread which ranges between 145 to 220 basis points based on overall Company leverage. The current spread associated with the loan is 1.7% resulting in an all-in rate of 3.3%.
Summary of mortgage notes payable
A summary of mortgage notes payable at December 31, 2013 and 2012 is as follows (in thousands):

 
 
 
 
 
 
 
 
Note Balance
 
 
Fixed
 
Maturity
 
Monthly
 
December 31,
Office Property
 
Rate
 
Date
 
Payment
 
2013
 
2012
Wholly Owned
 
 
 
 
 
 
 
 
 
 
Westshore Corporate Center
 
2.5
%
 
05/01/2015
 
$
88

 
$
14,312

 
$
14,520

Teachers Insurance and Annuity Associations (5 properties)
 
6.2
%
 
01/01/2016
 
565

 
71,307

 
73,584

NASCAR Plaza
 
3.4
%
 
03/30/2016
 
—

 
—

 
42,608

John Hancock Facility  (2 properties)
 
7.6
%
 
06/01/2016
 
130

 
17,634

 
17,852

Capital City Plaza
 
7.3
%
 
03/05/2017
 
253

 
32,860

 
33,489

The Pointe
 
4.0
%
 
02/10/2019
 
79

 
23,500

 
—

Corporate Center Four at International Plaza (1)
 
4.6
%
 
04/08/2019
 
143

 
36,000

 
—

Morgan Keegan Tower
 
7.6
%
 
10/01/2019
 
163

 
9,211

 
10,419

Citrus Center
 
6.3
%
 
06/01/2020
 
153

 
21,601

 
22,035

Bank of America Center (2)
 
4.7
%
 
05/18/2018
 
138

 
33,875

 
—

Stein Mart
 
6.5
%
 
08/01/2020
 
81

 
11,286

 
11,517

Phoenix Tower
 
3.9
%
 
03/01/2023
 
258

 
80,000

 
—

Deerwood North and South
 
3.9
%
 
04/01/2023
 
276

 
84,500

 
—

Lincoln Place
 
3.6
%
 
06/11/2016
 
293

 
49,317

 
—

CityWestPlace I & II
 
6.2
%
 
07/06/2016
 
738

 
117,663

 
—

CityWestPlace III & IV
 
5.0
%
 
03/05/2020
 
512

 
93,367

 
—

San Felipe Plaza
 
4.8
%
 
12/01/2018
 
438

 
110,000

 
—

Total Wholly Owned
 
 
 
 
 
4,308

 
806,433

 
226,024

 
 
 
 
 
 
 
 
 
 
 
Parkway Properties Office Fund II, LP
 
 
 
 
 
 
 
 
 
 
Cypress Center I-III
 
4.1
%
 
05/18/2016
 
—

 
—

 
12,088

3344 Peachtree
 
5.3
%
 
10/01/2017
 
485

 
84,739

 
86,487

Bank of America Center (1)(2)
 
4.7
%
 
05/18/2018
 
—

 
—

 
33,875

Hayden Ferry Lakeside I (1)
 
4.5
%
 
07/25/2018
 
85

 
22,000

 
22,000

Hayden Ferry Lakeside II (1)
 
5.0
%
 
07/25/2018
 
190

 
46,875

 
48,125

The Pointe
 
4.0
%
 
02/10/2019
 
—

 
—

 
23,500

245 Riverside (1)
 
5.2
%
 
03/31/2019
 
42

 
9,250

 
9,250

Corporate Center Four at International Plaza (1)
 
5.4
%
 
04/08/2019
 
—

 
—

 
22,500

Two Ravinia (1)
 
5.0
%
 
05/20/2019
 
95

 
22,100

 
22,100

Two Liberty Place
 
5.2
%
 
06/10/2019
 
391

 
90,200

 
90,200

Carmel Crossing
 
5.5
%
 
03/10/2020
 
—

 
—

 
10,000

Total Fund II
 
 
 
 
 
1,288

 
275,164

 
380,125

 Unamortized premium/(discount)
 
 
 
 
 
5,596

 
15,896

 
(260
)
Total Mortgage Notes Payable
 
 
 
   
 
$
11,192

 
$
1,097,493

 
$
605,889


(1)
Property has entered into an interest rate swap agreement with the Lender associated with these mortgage loans.
(2)
On December 23, 2013, the Company acquired its partner's 70.0% ownership interest in Bank of America Center. No changes were made to the size, structure or terms of the mortgage note secured by the property.
Aggregate annual maturities of mortgage notes payable
The aggregate annual maturities of mortgage notes payable at December 31, 2013 are as follows (in thousands):
 
Total
Mortgage
Maturities
 
Debt
Balloon
Payments
 
Debt
Principal
Amortization
2014
$
11,896

 
$
—

 
$
11,896

2015
31,983

 
14,013

 
17,970

2016
262,640

 
244,746

 
17,894

2017
124,746

 
107,939

 
16,807

2018
212,713

 
193,952

 
18,761

Thereafter
437,619

 
413,412

 
24,207

Total principal maturities
1,081,597

 
974,062

 
107,535

Fair value premium on mortgage debt acquired
15,896

 
—

 
—

Total principal maturities and fair value premium on mortgage debt acquired
$
1,097,493

 
$
974,062

 
$
107,535
Summary of interest rate hedge contracts
The Company's interest rate hedge contracts at December 31, 2013 and 2012 are summarized as follows (in thousands):
    
 
 
 
 
 
 
 
 
 
 
 
 
Asset (Liability) Balance
 
 
 
 
 
 
 
 
 
 
 
 
December 31,
Type of Hedge
 
Balance Sheet Location
 
Notional Amount
 
Maturity Date
 
Reference Rate
 
Fixed Rate
 
2013
 
2012
Swap
 
Account payable and other liabilities
 
$
12,088

 
11/18/2015
 
1-month LIBOR
 
4.1%
 
$
—

 
$
(582
)
Swap
 
Account payable and other liabilities
 
30,000

 
2/1/2016
 
1-month LIBOR
 
2.3%
 
—

 
(1,787
)
Swap
 
Receivables and Other Assets
 
50,000

 
9/28/2017
 
1-month LIBOR
 
2.5%
 
769

 
(43
)
Swap
 
Account payable and other liabilities
 
120,000

 
6/11/2018
 
1-month LIBOR
 
3.3%
 
(985
)
 
—

Swap
 
Receivables and Other Assets
 
13,500

 
10/8/2018
 
1-month LIBOR
 
3.3%
 
90

 
—

Swap
 
Receivables and Other Assets
 
75,000

 
9/28/2017
 
1-month LIBOR
 
2.5%
 
1,162

 
(65
)
Swap
 
Account payable and other liabilities
 
625

 
1/25/2018
 
1-month LIBOR
 
4.9%
 
(49
)
 
—

Swap
 
Account payable and other liabilities
 
33,875

 
11/18/2017
 
1-month LIBOR
 
4.7%
 
(1,973
)
 
(3,312
)
Swap
 
Account payable and other liabilities
 
22,000

 
1/25/2018
 
1-month LIBOR
 
4.5%
 
(1,067
)
 
(1,923
)
Swap
 
Account payable and other liabilities
 
45,625

 
1/25/2018
 
1-month LIBOR
 
4.7%
 
(383
)
 
(1,581
)
Swap
 
Account payable and other liabilities
 
9,250

 
9/30/2018
 
1-month LIBOR
 
5.3%
 
(703
)
 
(1,218
)
Swap
 
Account payable and other liabilities
 
22,500

 
10/8/2018
 
1-month LIBOR
 
5.4%
 
(1,843
)
 
(3,135
)
Swap
 
Account payable and other liabilities
 
22,100

 
11/18/2018
 
1-month LIBOR
 
5.0%
 
(1,427
)
 
(2,639
)
 
 
 
 
 
 
 
 
 
 
 
 
$
(6,409
)
 
$
(16,285
)
Derivative financial instruments
The table below presents the effect of the Company's derivative financial instruments on the Company's consolidated statements of operations and comprehensive loss for the years ended December 31, 2013, 2012, and 2011 (in thousands):
 
Year Ended
Derivatives in Cash Flow Hedging Relationships (Interest Rate Swaps and Caps)
December 31,
2013
2012
2011
Amount of gain (loss) recognized in other comprehensive income on derivative
$
4,110

$
(7,413
)
$
(12,580
)
Amount of gain (loss) reclassified from accumulated other comprehensive income into interest expense
(5,615
)
(4,117
)
(2,111
)
Amount of gain (loss) reclassified from accumulated other comprehensive income into non-cash expense on interest rate swap included in discontinued operations
—

215

(2,338
)
Amount of gain (loss) recognized in income on derivative (ineffective portion, reclassifications of missed forecasted transactions and amounts excluded from effectiveness testing)
(390
)
—

—