Cousins Properties Incorporated 2006 Annual Report - SNL Financial

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Prudential and 10.3% for the Company. As of December 31, 2006, CPV Two owned one office building totaling
69,000 rentable square feet and four retail properties totaling 1.0 million rentable square feet.
In 2004, CPV sold Wachovia Tower to an unrelated third party for approximately $36.0 million. CPV
recognized an impairment loss of approximately $1.5 million, which represented the difference between the book
value of the asset and the sales price. The Company recorded 11.5% of this impairment loss through Income from
Unconsolidated Joint Ventures. In 2006, CPV sold Grandview II to an unrelated third party for approximately
$22.8 million, and recorded a gain on this sale of approximately $6.4 million. The Company recorded its share
(11.5%) of the gain through Income from Unconsolidated Joint Ventures.
CL Realty, L.L.C. (“CL Realty”) — CL Realty is a 50-50 joint venture between the Company and a subsidiary
of Temple-Inland Inc., and is in the business of developing and investing primarily in single-family residential lot
development properties. As of December 31, 2006, CL Realty was developing, either directly or through
investments in joint ventures, 15 residential developments, 10 of which are in Texas, two in Georgia and three
in Florida. CL Realty sold 973, 1,314 and 972 lots in 2006, 2005, and 2004, respectively, and 8,689 lots remain to be
developed or sold at December 31, 2006. The venture also sold 134 acres of land in 2006 and has interests in
approximately 554 remaining acres of land, which it intends to develop or sell as undeveloped tracts. CL Realty has
construction loans at various projects, detailed as follows (dollars in thousands):
Description (Interest Rate Base, if not fixed)
Total
Debt
CL Realty’s
Ownership
Percentage
Maturity
Date
Rate End of
Year
CL Realty:
Summer Lakes (Prime + 3%) ...............
Southern Trails (LIBOR + 0.25%; $13 million
$ 1,356 100% 3/30/2007 11.25%
construction line) ...................... — 80% 6/30/2008 5.57%
Village Park (� of 10% or Prime + 2%) ....... 2,718 100% 5/15/2007 10.25%
Village Park North (Prime + 1%) ............ 1,283 100% 1/14/2008 9.25%
Long Meadow Farms (Prime + 0.5%) ......... 7,737 37.5% 6/08/2007 8.75%
Stonewall Estates (Prime) .................. 3,518 50% 5/31/2010 8.25%
Blue Valley (Prime) ...................... 15,912 25% 5/11/2007 8.25%
Blue Valley (� of Prime or 5.5%). ........... 4,600 25% 3/05/2007 8.25%
TOTAL.............................. $37,124
CF Murfreesboro — In July 2006, the Company formed CF Murfreesboro, a 50-50 joint venture between the
Company and an affiliate of Faison Associates, to develop The Avenue Murfreesboro, an 810,000 square foot retail
center in suburban Nashville, Tennessee. Upon formation, the joint venture acquired approximately 100 acres of
land for approximately $25 million, obtained a construction loan and commenced construction of the center. The
construction loan has a maximum available of $131 million, an interest rate of LIBOR plus 1.15% and expires
July 20, 2010. Approximately $21.4 million has been drawn on the construction loan as of December 31, 2006. The
Company guarantees 20% of the amount outstanding under the construction loan, which equals $4.3 million at
December 31, 2006. The retail center serves as collateral against the construction loan, and the Company is liable
for 20% of any difference between the proceeds from the sale of the retail center and the amounts due under the loan
in the event of default. The Company has not recorded a liability as of December 31, 2006, as it estimates no
obligation is or will be required.
Temco Associates, LLC (“Temco”) — Temco is a 50-50 joint venture between the Company and a subsidiary
of Temple-Inland Inc. As of December 31, 2006, Temco was developing, either directly or through investments in
joint ventures, four single-family residential communities in Georgia with 1,638 total projected lots remaining to be
developed or sold. During 2006, 2005 and 2004, Temco sold 477, 467 and 491 lots, respectively. Temco sold
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