Investment in Unconsolidated Joint Ventures

In addition to the 44 office and parking properties included in the consolidated financial statements, the Company has also invested in three unconsolidated joint ventures that own seven office and parking properties as of June 30, 2014. The three investments in unconsolidated joint ventures are accounted for under the equity method of accounting.

Information relating to the unconsolidated joint ventures is summarized below (in thousands):



Joint Venture Entity	Location	Parkway's Ownership%	Number of Properties	Investment Balance at June 30, 2014		Investment Balance at December 31, 2013
PKY/CalSTRS Austin, LLC ("Austin Joint Venture")	Austin, TX	40.00%	5	$	75,813	$	93,171
US Airways Building Tenancy in Common ("US Airways Building")	Phoenix, AZ	74.58%	1	40,371		42,501
7000 Central Park JV LLC ("7000 Central Park")	Atlanta, GA	40.00%	1	15,259		15,490
			7	$	131,443	$	151,162

The following table summarizes the combined balance sheet of the unconsolidated joint ventures at June 30, 2014 (in thousands):



	US Airways Building		7000 Central Park		Austin Joint Venture		Total
Cash	$	148	$	1,468	$	10,497	$	12,113
Restricted cash	—		170		515		685
Real estate, net	48,404		49,060		715,496		812,960
Intangible assets, net	5,350		5,888		53,795		65,033
Other assets	597		1,133		17,415		19,145
Total assets	$	54,499	$	57,719	$	797,718	$	909,936

Mortgage debt	$	13,609	$	30,000	$	627,744	$	671,353
Other liabilities	371		2,402		43,626		46,399
Partners' equity	40,519		25,317		126,348		192,184
Total liabilities and partners' equity	$	54,499	$	57,719	$	797,718	$	909,936

The following table summarizes the combined balance sheet of the unconsolidated joint ventures at June 30, 2013 (in thousands):



	US Airways Building		7000 Central Park		Austin Joint Venture		Total
Cash	$	—	$	—	$	—	$	—
Restricted cash	—		—		—		—
Real estate, net	49,945		—		—		49,945
Intangible assets, net	5,878		—		—		5,878
Other assets	547		—		—		547
Total assets	$	56,370	$	—	$	—	$	56,370

Mortgage debt	$	13,945	$	—	$	—	$	13,945
Other liabilities	247		—		—		247
Partners' equity	42,178		—		—		42,178
Total liabilities and partners' equity	$	56,370	$	—	$	—	$	56,370

The following table summarizes the combined statement of operations of the unconsolidated joint ventures for the three months ended June 30, 2014 (in thousands):



	US Airways Building		7000 Central Park			Austin Joint Venture			Total
Revenues	$	1,126	$	1,921		$	24,435		$	27,482
Operating expenses	—		1,023			9,807			10,830
Depreciation and amortization	522		1,181			9,214			10,917
Operating income (loss)	604		(283		)	5,414			5,735
Interest expense	103		148			9,579			9,830
Loan cost amortization	—		57			(161		)	(104		)
Other expenses	—		—			1			1
Net income (loss)	$	501	$	(488	)	$	(4,005	)	$	(3,992	)

The following table summarizes the combined statement of operations of the unconsolidated joint ventures for the six months ended June 30, 2014 (in thousands):



	US Airways Building		7000 Central Park			Austin Joint Venture			Total
Revenues	$	2,252	$	3,769		$	48,578		$	54,599
Operating expenses	—		1,873			19,664			21,537
Depreciation and amortization	1,044		2,293			19,164			22,501
Operating income (loss)	1,208		(397		)	9,750			10,561
Interest expense	207		63			19,064			19,334
Loan cost amortization	—		106			(322		)	(216		)
Other expenses	—		—			1			1
Net income (loss)	$	1,001	$	(566	)	$	(8,993	)	$	(8,558	)

The following table summarizes the combined statement of operations of the unconsolidated joint ventures for the three and six months ended June 30, 2013 (in thousands):



	US Airways Building		7000 Central Park		Austin Joint Venture		Total
Revenues	$	299	$	—	$	—	$	299
Operating expenses	—		—		—		—
Depreciation and amortization	193		—		—		193
Operating income	106		—		—		106
Interest expense	—		—		—		—
Loan cost amortization	—		—		—		—
Other expenses	—		—		—		—
Net income	$	106	$	—	$	—	$	106

With respect to the Austin Joint Venture, the Company's share of Partner's equity is $50.5 million and the Company's share of Partner's excess investment is $25.3 million at June 30, 2014. "Excess investment" represents the unamortized difference of the Company's investment over the Company's share of the equity in the underlying net assets of the joint venture acquired and is allocated on a fair value basis primarily to investment property, lease related intangibles and debt premiums. The Company amortizes excess investment over the life of the related depreciable components of investment property, typically no greater than 40 years, the terms of the applicable leases and the applicable debt maturity, respectively. The amortization is included in the reported income from unconsolidated joint ventures.