Jeffrey Gould: Well, Barry, it’s sort of two-fold. It’s the cap rates, but it’s also the interest rates, so where we’re seeing neutral, let’s call it, neutral leverage. I think that’s about where we play the game. So if you’re talking about an interest rate market of 5.5% and cap rates of 5.5%, that might be something more interesting to us. We’ve been very patient in the last couple of years. It’s been frustrating, and we think it’s been prudent and smart to be patient. And looking back, I’m glad we didn’t buy anything over the last year or two. A lot of investors were targeting and projecting some pretty substantial rent growth, and it’s not there at all. As a matter of fact, it’s not even close to what they anticipated.
But I think realistically, I think when it gets to about a neutral and when things calm down and the tenure is not jumping all over the place as it is week to week now, I think we’ll be in a much better place to consider acquisitions for value add properties, as well as even more stabilized situations.
Barry Oxford: No, that makes sense. And then on the unconsolidated partners, are there any partners that are looking to monetize their position that could buy them out? Or no, not right now. Nobody’s really throwing their hand up.
Jeffrey Gould: Yes, things have been pretty quiet. As we said to you guys have maybe to everyone about a year or two ago we took care of the ones that were sort of the lower-hanging fruit, if you will.
Barry Oxford: Right.
Jeffrey Gould: And the partners that we have now, I think there’ll be an event when the maturities take place and the maturities on those partnership deals is typically happening between like 2027 and 2029 somewhere in that range. It may happen sooner, but I think the maturity event will cause a discussion and an outcome whether it’s we buy them, we sell they buy us, I’m not sure what the outcome will be, but it’s probably more targeted towards the maturities, and you have that information. So I expect it’ll be quiet for the next year or two and then things will ramp up on the – most of the rest of the partnership deals. So there will be an event that will take place at that time.
Barry Oxford: Great. Thanks for the color on that. And then last question. You indicated there’s definitely some supply coming on. Is there demand for that supply? What I’m driving at is, is there brisk net absorption to say, hey, look as we get towards the end of 2024, most of the supply should be leased up or Jeff, you have the mind let – this could be more kind of more longer process and lease-up that could bleed into 2025?
Jeffrey Gould: Combination answer. We went into some markets that in your wildest dreams, you probably won’t imagine to oversupply. And now we’re seeing in Hunstville, Alabama example, Pensacola, Florida. I mean, the typical market is Nashville, Dallas, you might have expected it.
Barry Oxford: Right.
Jeffrey Gould: We’re comfortable in all these markets. And again, fortunately a larger our portfolio does not have oversupply issues. But where we do we’re comfortable with the in-migration and the absorption will be good. I do think it may go on past 2024, and I think it may take longer than just the calendar 2025, into 2025, but I do think there’s net absorption and these will get filled up. And I think we’ll see much better days early in 2025, not sure right away, but early towards the first – second quarter of 2025.
Barry Oxford: Great. Thanks a lot, Jeff.
Jeffrey Gould: Sure.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Jeff Gould for any closing remarks.
Jeffrey Gould: Well, thank you all for your continued confidence in BRT and have a good day. If you have any questions that you need to talk with this about, please feel free to call Ryan Baltimore and myself. Thank you.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
