And taxes and property taxes, particularly are an unknown. So, there are states like Illinois and New York and California and New Jersey, which become difficult. Having said that, in California we have had some good experiences, in San Francisco we have had good experiences, in Los Angeles. We have an Oakland asset that’s very small, low leverage office asset that’s struggling in terms of its leasing. But generally speaking, as I have said in my prepared remarks, we are recognizing the fact that in our lending, that not only is there a work from home issue with office, but there is a migration shift. And a lot of that has to do with not just taxes, and work from home, but also quality of life. And we are seeing that net-net, I would rather land at a low cap rate in Arizona, then land at a very high cap rate in Illinois, all things being equal, because I think that ultimately, population can bail out a mistake that you may have made in a state like Nevada, Arizona, like Texas versus Illinois, where the headwinds are just against you for the life of the loan.
Jason Sabshon: Got it. Thank you very much.
Operator: We have next question from the line of Jason Stewart with Jones Trading. Please go ahead.
Unidentified Analyst: Hey guys, this is Matthew on for Jason. Thanks for taking the question. What are you looking for in terms of opportunistic development, more visibility in the portfolio or from the Fed? And then given that, where do you think the opportunities will be and expectation for going in and exit cap rates?
Mike Mazzei: Okay. There is a lot there to unpack. In terms of €“ and I may have to retrace that question with you to make sure I address it. In terms of opportunities, as we said in the prepared remarks. When you get a shakeout like this, the goal is, you make it to the other side and you have liquidity on your balance sheet and you can start lending again. And as we said, we do think that given the dislocation that could occur it in the office sector and continued uncertainties, we think some of the bigger opportunities will be to lend on the office market. And there may be a new dynamic in terms of how to price that, right. Right now, that’s still in the state of flux. Most lenders are on the bench and kind of frozen out of the market.
But we do think that the cost of capital in the office sector is going up. And that’s going up largely driven by the leverage. Leverage will become more conservative. Leverage will be lower. And not necessarily, it’s not necessarily about the rate, the rate may stabilize, but the leverage point will probably get a lot lower, requiring more equity. And that’s putting a weight on equity returns for that leverage amount which can drive cap rates up. So, we do think that cap rates in the office market will have a bias toward increasing on the pace of this uncertainty, even as rates come down, as long as this work from home environment that we have discussed continues to persist, which we anticipated well. Is there anything else in your question?
I don’t think I addressed the whole thing. Is there anything else that you want to go back on specifically?
Unidentified Analyst: Yes. You addressed the first half pretty well. But the second part was kind of going in and exit cap rates. So, I guess where would you guys look to enter in at? And then where would you look to exit out on some of these opportunistic offices?
