Jade Rahmani: On the junior mezz position is 255 million. So that’s also quite large, the three of those some 720.8 million. I mean, it would seem that the junior mezzanine B position of 15.5 million, there’s a good chance that faces for the reserves, but could there also be reserves on the junior mezzanine A position what would be the last dollar basis or price per square foot or some metric that you think about.
Stuart Rothstein: I mean the way we think about it Jade, if you look at the senior loan and the senior mezz position, net of sort of what’s taken place to date already, you’re talking about from a our eyes perspective, you’re talking about $430 million of basis, if you think about the fact that we actually have a partner in the senior loan with another financial institution, you’re talking about $570 million of value in the remaining units to get those two pieces fully paid off.
Jade Rahmani: Okay. And how many remaining units are there like something in the range of 40 or–
Stuart Rothstein: Little less than 40.
Jade Rahmani: Okay. And they’re going for around 20 million apiece.
Stuart Rothstein: I mean, you can have units of 10 million, you can have units of 50 million, just tell me what you and your family might of move into, and we’ll find the right unit for you.
Jade Rahmani: But what do you think? I mean, on average, just to qualify that basis, that actually is 70 million.
Stuart Rothstein: Let’s put it this way, I would say at $575 million of value, you are inside 60% on a loan to net sellout basis, including selling costs, et cetera.
Jade Rahmani: Okay. So how much risk is there to the junior mezzanine? So it seems like you’re suggesting that there’s the 575 million, that’s your senior position plus the other senior loans, right?
Stuart Rothstein: Like the whole senior mortgage. It’s our mortgage, right? It’s the full mortgage, which is shared plus our senior mezz position.
Jade Rahmani: Okay. The 575 is a rise senior loan and senior mezzanine position plus the other partner senior loans?
Stuart Rothstein: Yes.
Jade Rahmani: So then the risk that you are suggesting is in the junior mezzanine A and B positions, those collectively total 270.6 million. I mean, would it be fair to haircut those two positions.
Stuart Rothstein: I think what Anastasia was trying to explain and I don’t want to be cavalier about this. The way we see the world now, even if you assume certain haircuts to get assets sold, or units sold on a nominal basis, we still think everything is covered. From an accounting perspective, which requires a DCF analysis, not just a nominal basis, you could have a situation where there is some incremental allowance in the future, based on pacing, not based on any changed view of what units will sell for, but then you’ll actually recover that allowance when units are sold and you actually receive the nominal pricing.
Jade Rahmani: Yes. I mean, we can expect there to be, 20-year life to recovering, but I mean, that doesn’t make sense to take a haircut.
Stuart Rothstein: It’s all based on your view of timing, I agree.
Jade Rahmani: Okay, great. Well, I appreciate the color. Thanks so much.
