Bob Garechana: No, it’s structural. It’s a structural kind of tax protection component. It’s a piece of debt that actually was financed related to the Archstone acquisition. So, there are certain partners that were in the old Archstone structure that had tax protection. So, we have obligations to maintain some secured debt, a portion of that in secured, and that’s why. As you think about the — so it has nothing to do with kind of anything about that structural piece. When you do look at kind of the secured debt markets relative to the unsecured, the unsecured has come in a little bit. So, it’s slightly more favorable than the secured, but they’re all pricing in that, call it, high-4s range, especially for really low levered product in the secured like we had — like we have in this pool. So it’s not a market decision choice. It’s more of a structural choice.
Operator: And we’ll take our next question from the line of Adam Kramer with Morgan Stanley. Please go ahead.
Adam Kramer: Hey guys. Yes. Thanks for taking the question. I appreciate it. Look, I just wanted to ask a little bit about kind of the January commentary. Maybe it’s the seasonality commentary in the release. Look, Mike, I think you kind of — you mentioned, right, maybe a little bit worse than seasonal in the fourth quarter. But at the same time, right, I think January, new lease I mean is strongest among the group, still kind of positive 140 basis points. So, maybe just kind of trying to tie or square these different things together, right, the occupancy loss, strong new lease and kind of the seasonality comments and try to kind of tie or blend all those things together in terms of kind of what’s happening right now with fundamentals.
Michael Manelis: Yes. Hey Adam, it’s Michael. So, I think what I would look to is one, the sequential comment I was referring to is December to January, not like when you’re looking into the release, the fourth quarter to January numbers. So, when you think about occupancy, our occupancy actually held flat, right? We were, I think, 95.8% in December; we’re 95.8% or 95.9% for January. And so, I look at that and say, as you think about returning to normal seasonality, it is very common for occupancy to trade down into that fourth quarter. So what we saw is that pattern kind of emerge. And outside of some of the pricing pressure that I described, some of the additional concessions, the way that the rents moderated is very consistent with what you would expect.
That being said, you turn the corner and you get into January, what we normally would see in January is right after that new year, you see sequential improvement every week in application volume and rents ticking up and we got a little bit of an accelerant, like I said, in the urban because we started pulling back concessions when we saw that inbound demand doing what you would expect it to do. Now, what’s interesting is like the cold weather climates like Boston and New York, they kind of tend to stall in February. You get a little bit of a boost in Jan and then it stalls and then you hit March and then you’re kind of off to the races for the spring leasing season. So, I think my commentary was just pointing to you if I went back and looked at €˜18, €˜19, any of these years, the trends that we’re seeing today, and again, we’re five weeks into the year or something like that is very consistent with a normal year, which would tell us you would expect a normal spring leasing season.
