As it relates to the Ritz-Carlton condos, but this — where we decided to launch pricing on those was well in excess of where any market study said was possible, and it was heavily debated within the C-suite. It was heavily debated within the boardroom. And what we did is we launched a small portion of the building. And over the course of that launch, we increased pricing sometimes multiple times per day that totaled in excess of 17%. And since launch, we pulled almost all of the units off the market with the exception of a handful and have continued to push pricing higher. And our view at this point is that we’re going to hold off selling the remaining units in the rig until the building is complete until people can walk and see the incredible bob-stern design.
They can see the views from those units, the Lakefront Pristine that they’ll enjoy as residents of the Ritz-Carlton. And I think that at that point, when we go to sell the remaining 50% of the building, we’ll even further exceed pricing that we’ve achieved to date.
Alexander Goldfarb: So let me just follow up on that, though, David. Sometimes, though, developer expectations, burden hand versus two in the bush or whatever the expression is, why take that risk like the market could change when you deliver? Why not continue to sell now?
David O’Reilly: Well, I think that this is the best remaining residential site in the Woodlands, with the best potential combination of interiors and architecture, the highest level of finishes that have ever been seen, to date, we have seen outstanding demand that has been nothing short of incredible pushing pricing to levels that have never been seen in the Houston market before. And while we are going to take a little bit of market risk, I think the money that we have left on the table for the best site in the Woodlands will be worth taking that risk. And by the time when we finish construction, if the market isn’t receptive, it’s not as if we’re just going to fire sell these units. These are incredible once-in-a-lifetime opportunity to buy residents on Lake Woodlands, and we’ll wait until we achieve the pricing we think is appropriate.
Alexander Goldfarb: Okay. And just final question. Carlos, any additional spin costs that we should be modeling, there was $0.19 in the first quarter. Presumably, there’s an additional in the remaining just — I know, David, it’s not an FFO guy, but those of us on The Street are just that we can be aware of. So as we’re thinking about earnings the rest of the year, we can think about some element of impact of spin costs.
Carlos Olea: Thanks, Alex and good morning. Now the $25 million that we disclosed the number that we’re tracking towards between now and the full completion of the spin-off. So you can use that number, that is a number that we’re comfortable tracking to.
Alexander Goldfarb: Okay. Thank you.
Operator: One moment for the next question. Our next question comes from Alexander — I’m sorry, Alex Barron with Housing Research Center.
Alex Barron: Thank you, gentlemen. I was just hoping to get a bit more details on the Floreo piece of land, I guess, or joint venture. What percentage of the joint venture, I guess, is owned by you guys? And as you look forward, are you expecting a similar size of land sales each quarter? Is it going to be lumpy? Like what’s the outlook there?
David O’Reilly: Good morning, Alex, appreciate the question. We’re a 50% joint venture partner at Floreo, which is the first phase of the overall Teravalis joint venture. I think that as we’ve kind of talked about a lot with all of our MPCs, land sales tend to be lumpy. I don’t expect that we will see a similar amount of land sales at Floreo every single quarter to the level that we saw this quarter. I think we’ll probably have another group of sales. It will sell in the remainder of 2024, and that will in all likelihood be in the third quarter or potentially the fourth quarter. But this is not something that we should model on a quarterly basis. There’ll be one to two times per year. We’ll close on a handful of parcels with our builders. And over the course of eight years, will allow us to track to enough land into the hands of builders to keep up with underlying home sales.
Alex Barron: Okay, great. The other question is it looks like the density was about seven homes per acre, which seems a little bit high. Was that more like a touch product? Or is the density likely to go down to four more single-family type homes in the future?
David O’Reilly: No, these are all going to be single-family homes. These are not attached products. The density may come out that way because we’re looking at net acres instead of gross. And I would say that we have a variety of block sizes, a variety of product mix, a host of great builders. And we’re going to be hopefully meeting the sweet plot of demand across what exists out there in the West Valley of Phoenix, which is a more affordable product, especially as we launched the first phase of this community.
Alex Barron: Got it. And on the Ritz-Carlton project, obviously, you guys sold quite a bit in a week. Are the sales going to continue at that pace? Or are you going to slow down and raise the prices for the rest?
David O’Reilly: Well, we’ve already — as I kind of mentioned the last question, Alex, we’ve raised prices 17% already from launch till today. We’re going to raise it further, but we’re going to hold the vast majority of the remaining units off the market until we complete construction, but we think we’ll be able to exact an even higher price per unit.
