Alan Ratner: Understood, that’s helpful color Dan. Second, I know the timeline is still uncertain with San Francisco and you haven’t given a target there, but my question is, when that project does get off the ground, is there any way you can kind of help us think through what the cashflow impact would look like initially? I would imagine you would have to put up some development dollars before the first phase of land would be ready for sale. So any way to think about what that initial outlay might look like, how long that might be before revenues begin to recognize, just kind of thinking through the forward look there?
Dan Hedigan: Well, when we think about San Francisco, we really do think of ourselves as the horizontal developer. You know, there will always be the need for vertical development in that site, but we are the horizontal developers. So from a standpoint of revenue events on the land side, they will be pretty much tied to completion of a deliverable site. And as part of the conversations we’re having right now with the city and county of San Francisco, is we are looking at that first phase and how you access that first phase. But there’s always going to be kind of a variety of options of how we approach that as far as matching, you know, the spend to capital and near-term revenue. But the revenue really does, it does flow from the horizontal development.
We’re not really going to need the vertical development. That vertical development, as Kim talked about, is going to be a big part of future capital through CFDs and TIF. But the initial revenue is going to be tied to horizontal land sales.
Alan Ratner: Just to follow-up on that, Dan, because, yes, I think I understood that. But is that kind of like a 12-month horizontal development lead time from shoveling ground to having a parcel ready to sell and begin to recognize revenue on? Is it longer, shorter? What any frame of reference there?
Dan Hedigan: Well, from the standpoint of getting to the first phase, you know, all things always are driven by having the approvals from the city to move forward. But what I think I would say on that, I mean, to get to the first phase is not going to be extraordinarily long. I don’t want to try to put a time frame on it today simply, because there’s so many variables that we’d be dealing with. But the initial phase once we are positioned and, you know, kind of have the rebalancing done is actually not that hard to get to, especially in Candlestick.
Alan Ratner: Got it. Okay. That’s helpful. Thanks a lot, guys. Appreciate it.
Operator: [Operator Instructions] Our next question comes from the line of Myron Kaplan, Private Investor. Please, proceed with your question.
Myron Kaplan: Yes, hi. Thanks for taking my questions. First of all, I’d like to commend you for a timely and ship-shaped reporting. Congratulations, Kim, for your elevation.
Kim Tobler: Thanks, Myron. It’s good to hear from you.
Myron Kaplan: Yes. I wanted to ask, what’s the rate of the senior notes that are due in 2025, the coupon?
Kim Tobler: 7.875%.
Myron Kaplan: And what’s the principal amount?
Kim Tobler: $625 million.
Myron Kaplan: That’s really the elephant in the room, so to speak.
Kim Tobler: It is the elephant I look at every day when I get in, when I wake up.
Myron Kaplan: Yes. Right off. I just wanted to ask just an informational question. What — I didn’t understand what’s the — you were talking about a parcel in the Great Park of 40 acres of commercial land?
Dan Hedigan: Yes, those are actually two pieces, that’s a combination of two pieces of property that are actually in escrow today. So those would be closing we anticipate by the end of the year.
Myron Kaplan: I see. So those are basically under contract.
Dan Hedigan: Correct.
