But I think you will see the bid and as spread narrow, once there’s better clarity as to what 5 and 10 year borrowing costs will be and remind everyone, if we are in an environment, we’re borrowing costs for two-thirds mortgage financing, which drives the majority of retail investment. If two-thirds financing is at 5% or even 6%, that’s not the end of our industry. So capital will start coming back, bit frozen now, some buyers owners have been hesitant, but my guess is in the next few months there will be much better clarity and then better deals well.
Operator: Our next question comes from the line of Ki Bin Kim with Truist.
Ki Bin Kim: Just had a couple of development questions. Going back to the 555 9th Street, can you just talk a little bit more about the redevelopment plans for that asset? When you look at Google Street View, it is probably hard to appreciate what the ultimate outcome could be.
John Gottfried: Yes. And we’ll post some better rendering shortly, because it is hard to describe, but I appreciate you asking the question, and I will take as tab at it. Right now, all of the access to the retailers is at the street level, whether you’re going into a Bed Bath &Beyond or a Trader Joe’s. Part of our vision is to have a very dynamic street level, retail shopping experience, but then have that somewhat separate from the second level, which has historically just been overflow parking. People would park up there and then walk downstairs. With the addition, first and foremost of Container Store as the first anchor, on the upper level, open air parking, pedestrian access, people will be able to drive up there and walk into all of the second floor stores.
That is predicated on us getting back at least half of the Bed Bath & Beyond. And what we have explained over the years is we’ve tried desperately to get back one of the two levels, if not both of that very important Bed Bath & Beyond to them and they were unwilling to do so. I think they’re much more open minded now to say the least. So if we can then add that second anchor on the upper level plus shops in between, it will be and feel like a more typical open air community center. And on further calls, we’ll get into how we’re going to curate that. It’ll be pedestrian friendly, it will make all the sense for where San Francisco is going. Then on the street level, we have a very strong, recently expanded Trader Joe’s. We will lease the street level retail off of that.
Think of it almost as two connected, but different shopping centers. And I think that will much better serve the needs of those shoppers. The final point though, is our Bed Bath & Beyond rent is cheap enough that we get to make money in this process.
Ki Bin Kim: And on 717 North Michigan Avenue, you guys sign signed can you just help us understand what the lease and demand pipeline might look like for that asset? And your supplemental 116 million of incurred costs, is that just your kind of building basis or what does that represent?
