So at 92% lease portfolio of basically Philadelphia, Pennsylvania suburbs in Austin, Texas, at 92%, I think really is the headline.Anthony Paolone Great. Thanks for all that. It’s just my other question relates more to life sciences wondering with the labs if you’re at a point where any of those tenants are converting into prospective tenants into your Schuylkill Yards developments at this point or if it’s just too early or just any other broader comments on the life science component of leasing?Gerard Sweeney Yeah, Tony, good question. We do. We think that there’s a number of tenants who are at or currently occupy space at B.Labs that remain interested in looking at 3025 and 3151. Frankly, one of the dynamics driving the conversion, the ninth floor was that some of those tenants had an immediate need for additional growth capacity.
But weren’t quite at a financial stage where they were we would underwrite them as a credit tenant new in a new building. So we’re being very careful how we do our underwriting on the life science front, as we’ve talked about on previous calls, we had an operating partnership agreement with the PA Biotech Council, which has been around for a couple of decades, as a scientific advisory board. They’re very much part and parcel of helping us success the financial viability of some of these lifestyle tenants.But I think the success of B.Labs is continued full occupancy in the high return on costs that we’re getting, certainly is emblematic of the growth track record that we see taking place as we move forward with the delivery to the building at Schuylkill Yards.Anthony Paolone Got it.
Thank you.Gerard Sweeney Thank you, Tony.Operator Thank you. And our next question comes from Nick Joseph with Citigroup. Your line is open.Nick Joseph Great, thank you very much. Jerry, you mentioned in the making progress on the dispositions, I was just wondering if you could provide some more color on the process, thus far, kind of the size and composition in the bitter pool and a pricing indications, any additional comments you had there.Gerard Sweeney Yeah, sure, Nick, how are you? Yeah, we put a number of properties in the market for discovery, which is that $200 million to $300 million range, some in Pennsylvania CBD, Philadelphia, Northern Virginia, as well as an Austin, Texas. And while we’re still getting visibility – I mean, deal pipeline, like I should say the timing of getting bids has been as we would expect, fairly protracted.
But as of right now we have one building that the buyer is an investment group and a tenant, who have that moving through contract negotiations that’s in a $50 million range. So we think that transaction will get across the finish line in the first half of the year.And then, we are evaluating bids from 3 different prospects on a suburban Philadelphia complex. That will kind of reach a conclusion on that in the next several weeks. So it seems that, somewhere around $100 million right now we feel are pretty getting to the level though the advanced, certainly $50 million is pretty advanced at this point. So that’s a pleasant surprise to us, because we weren’t really forecasting, much cap until the second half of the year. So this first foray of profits in the market, as we outlined on the last call was really just kind of test the appetite and see what’s out there.
So feedback has been slowed to come in at a number of fronts, certainly, I think we’re pretty happy with the progress we’re making so far.We have a couple of other properties in Northern Virginia, that we’re waiting for some feedback on some potential bidders, that that process is moving a bit slower in all candor, primarily driven by that market really has not performed that well anyway, then you at layer in the financing market challenges. As we would have expected a little bit slower, but at least we’re getting visibility and how to deal with that dynamic later in the year.Nick Joseph Thanks. That’s very helpful. And then maybe just on the financial market, I know you walk through kind of the lower loan to values what’s happening on the CMBS side as well.
Just keep touch on the current pricing difference that you see right now between secured and unsecured debt?Thomas Wirth Hi, Nick, this is Tom. I think for us right now, I think, the secured debt will be inside of the unsecured debt. Hard to say where that is. As I mentioned the CMBS market is being opening up, having some slowdown from the banks that were closing. But I don’t think it’s at least 100 to 200 basis points, and but you will see how we come out on pricing with some of the transactions we’re looking at right now.Gerard Sweeney Yeah, I think just add on to that, the unsecured market really is kind of the bank market and the public bond market. And I think, the unsecured bank market, while certainly more constrained than it was, I think, given relationship lending.
I think the team did a great job getting that $70 million unsecured financing across the finish line. The public bond market right now is gapped out to be much, much wider in terms of spreads versus banks. So we’ll see how that plays out over the next couple of quarters.Nick Joseph Thank you very much.Gerard Sweeney You’re welcome.Operator Thank you. Our next question comes from Michael Lewis with Truist. Your line is open.Michael Lewis Great. Thank you. Jerry, the first question that Tony asked you talk, you kind of combat at some investor perceptions. I think another investor perception is that office buildings are not financial. And you talked about the financing market a little bit, but I think your JV maturities are instructive. You mentioned you for the next 12 months.
Commerce Square sounds like it’s below LTV and close yet and done. The MAP Venture 78% occupied, Rockpoint 68% occupied, of course, Commerce Square is full. So, you mentioned kind of possible extensions, some will get refinanced.I guess my question here is kind of specific to you and then more broadly, I mean, do you think we’ll see a lot of loan extensions, you remember during the GSV [ph], everything was blend and extend? Do you think we’ll see a lot of defaults that put pressure on values? And so you have some of that in your portfolio, and I think it’s applicable to the rest of the universe. So do you have any thoughts on that?Gerard Sweeney Yeah. Hi, Michael. Great question. Look, I think, as we’re approaching all of these joint venture refinancing discussions, we’re talking to each of the lenders, who we have great relationships with about the dilemma that the portfolio is facing.
None of the dilemma the portfolio is facing as lack of performance effort by Brandywine and our operating partners, they tend to be more of a macro concern. So we can certainly articulate to those lenders exactly where every dollar wherever lease has gone over the term of their loan.And to some degree, those banks, Michael, will drive what the ultimate outcome will be whether they do a short-term extension and reset the rates. And the value proposition is supported by appraisals. That’s kind of track one, whether they wind up doing A, B note structure, providing a window of opportunity for a borrower, like our joint venture partners and Brandywine to invest additional capital and get that return is a priority for the B note, I think that will be a likely outcome in a number of situations.
I do think, and I’m not sure they’re applicable to any of our ventures. But I do think there’ll be situations where the borrower and the lender will simply agree that the best solution from the bank’s perspective to take the property back.The borrower’s may not be of the mindset to invest additional capital, given the quality of the portfolio that’s encumbered. Unless there’s an easy mechanism unless there’s clarity that the additional incremental money the borrower invests can be recovered as a priority of the over levered situation. So I think a lot of depends upon the approach that the banks take that will certainly determine what structures they work through with the borrowers.From our standpoint, we have great joint venture partners between our partners and Brandywine, we have extensive relationships.
We’ve always operated on a very forthright transparent basis. So I think all of our lenders view us as a really high quality landlord, and “Hey, if it wasn’t for the work you guys are doing the portfolio might not be performing as well as it is.” So if we think there’s a mutuality of interest between borrower and lender to reach the right economic program. But again, that has to work for both parties. So we’re going to each of these discussions is being constructive and positive and want to work through the right result. All of these mortgages, of course, as you know, Michael are non-recourse for anyone either has a negative a capital account, we’ve made plenty of property are marginal investment levels.So we’ll make the right business decision, both economic and reputational for the company.
And, to some degree, that decision, as I mentioned, can be driven by what the perspective is of the banks. But certainly, banks recognized that there’s a general credit crunch on commercial real estate, and that the issue is systemic, not specific, and how they deal with that will be within their own investment committees. But our approach is to get these loans extended, get them restructured for a capital structure that provides an opportunity for both the borrower and the lender to win. And we’ll see how that works its way through the process.Thomas Wirth Hey, Michael, this is Tom. I think, if we see interest rates kind of hit a peak, I think that some of our – talking to some of the banks, they feel, maybe if they’ve hit a peak stress level of where the rates are, at that may also, again, this is more for the loans in 2024 may give us an opportunity to see that sort of normalized, and then they have a little more clarity where they may see interest rates going and that can help in the decision making process as we talk to the lenders as well.Michael Lewis Yeah, that makes sense.
Those yield curve looks like they might start to help a little bit rather than here pretty soon. My second question is about the dividends. You last reduced the dividend in 2009, I checked your website and elsewhere, I think that’s the only time you’ve ever lowered the dividend in the company’s history. So I apologize if it makes you feel old. But we look back, I think, 30 years, we only found that one cut and I bring this up because I’ve argued that there might not be a reason to pay an 18% dividend yield for very long. But maybe I’m wrong if Brandywine is going to be known as a company that as long as the dividend is covered is going to pay it. It makes that that yield that apparently nobody thinks it’s going to stick around more attractive.And so I guess my question is, is your view that as long as the dividend is covered by cash flow, you continue to pay it?
Or do you do look at it, as you know, that high dividend yield isn’t doing you any favors? And you could retain that that capital anyway. How do you kind of think about balancing those things?Gerard Sweeney Michael, very fair question. And look, we continue to reflect on how our business plan is progressing, and how that relates to existing dividend levels, I think maybe a level set the discussion, before the impact of any of our sales, we think our taxable income is kind of in the $0.55 to $0.60 per share range. So the savings would be kind of $27 million to that low $30 million range annually. We also think some of the sales could have taxable gains maybe there’ll be – might be some taxable losses, too. So we’re waiting to get some more clarity on sales of what will sell and what gains and losses that we’ll have.We do have a strong baseline and I think, conservatively constructed operating plan for 2023.
And we may very well see some improvement in our capital ratios, as we’ve typically seen. For example, last year, our opening range was a cap tier ratio of 84% to 95%. And we round up at 84%. So even in the first quarter, we came in at 81%. So it is a challenge in strictly in this type of landscape, because I think to answer your question directly, I think the board will be the mindset so long as the dividend is covered, we want to continue paying that dividend. The variable to that which is well beyond our control is what happens in the capital market conditions. So, we want to be very disciplined and very mindful of forward liquidity and how we generate additional liquidity to both deliver the balance sheet, preserve good credit metrics, and keep the business plan moving forward.So, philosophically to answer your question is yes, but pragmatically, we’ve got to keep our eye on the bigger picture of things that we can’t necessarily control.
And I think the other way we look at it honestly is, we want to keep in mind that despite the irrationally low stock price, us and other office companies are having. The average investment face of our shareholders is in the low double digits. So the return to them at the current dividend level is in the 6% to 8% range. So even though spot pricing is much higher, it’s actually in a very reasonable range given the investment base of our shareholders who are counting on us to both have the forward focus on addressing liquidity as a financial discipline to inculcate the right results, and to generate additional external liquidity through sales to make sure that we keep the dividend fully covered.So we work for our shareholders and our office shareholders, not just Brandywine.
But all office shows have been really adversely impacted due to the macro negativity and the tone of what’s happening to office, what’s happened to credit markets, what’s happened to the economy? So I think we do and I say we, management and the board feel an obligation to continue keeping our business plan moving forward, to try and return as much value as we can to our owners during this very challenging period of time. I don’t know if that answers your question or not. But I think that’s how we kind of assess where we are.Michael Lewis No, that’s helpful. Thank you.Operator Thank you. And our next question comes from Tayo Okusanya with Credit Suisse. Your line is open.Gerard Sweeney Hello?Omotayo Okusanya Hello, can you hear me?Gerard Sweeney We can hear you.
How are you?Omotayo Okusanya Oh, perfect. Hi, how are you? So quick question just about new stuff of the longer GV development project, you guys – you talk a lot about sort of asset pipeline leasing pipelines actually look like expanding, because you just come talk about the kind of final conversion and where we can kind of expect to start to see some actual final leases for some of those assets.Gerard Sweeney You kind of have a little bit, but I think the question is kind of how we move through from the pipeline to lease execution? And, look, I think, the probability of a lease execution is a direct relation to the amount of pipeline we have. So, I think, while we are – we wish we had definitive leasing, to present back to you and our shareholders.
