So simply, I think what happened isn’t so much that people didn’t want to fund new loans. They were just so used to aggressive underwriting, which might have been appropriate at certain times, but it didn’t look like it was going to continue. So we actually did see some assets where rents were falling while we were underwriting. One of the things we do keep an eye on during the underwriting process is we literally watch some leased properties at units one by one and we’re very sensitive if all of a sudden, they signed 5 leases at lower rents than they’ve been in the last 12 months. So we saw some of that also.
Sarah Barcomb : Okay. Great. And so you talked about in terms of the equity investment sales, I believe there were three during the quarter and you talked about how one of them was one of your largest office assets. Can you talk €“ I might have missed it, but can you talk about the other two sales during the quarter and maybe give some color around cap rates there or any details you can share there?
Brian Harris: Well, yes, I am going to talk to the math of my head, but I know them. One that we sold was in Virginia. It was11 office buildings, suburban office buildings for $118 million and that obviously was the price we had paid for them, although there was a large GAAP gain associated with them there. I think we sold that at a 6.8% cap. And so, then, so that’s the one you knew about. The other two, one was we had owned a residential new development on the lower east side of Manhattan and we had one penthouse left to go, and we sold that for $8 million. I don’t know what the cap rate is, I apologize. That’s just residential condos. So that was just one, and the only thing we own in that building now is one retail condo at dollars per foot that are far lower than we’ve been selling out the residential properties at.
So we’re pretty comfortable there. Although retail in New York City is a little tough right now because for various reasons, but we think that will get straightened out eventually there. And the other property we sold was a wholesale club, and we sold it to another REIT, who likes that credit. It’s a BJ’s Wholesale Club. And I think we made about 35% versus our basis on that, which is consistent with where we’ve been selling BJs. We owned about 11 of them at one point. I think we have five left now. So those were the three asset sales.
Sarah Barcomb : Great. Thank you. That’s it for me.
Brian Harris: You are welcome.
Operator: We have reached the end of our question-and-answer session. I would like to turn the conference back over to management for closing comments.
Brian Harris: I just want to wrap up. This is always an interesting year-end call because we’ll be back on the phone in another month, I think, or 1.5 months. But just want to say thanks. Ladder really came full circle after the pandemic, and we’re off to a great start this year. We are in the right position with very low cost of funds, and we are really looking forward to a very differentiated and successful year. So, thank you for those who stayed with us, and thanks for always asking the right questions on these calls. Good night.
Operator: Thank you. This does conclude today’s conference. You may disconnect your lines at this time and thank you for your participation.
