Will Eglin: No. They let the renewal period expire in terms of exercising any renewal options with respect to either facility. So, we’ll move ahead and market them for sale and it’s possible during that process Wells could change their mind or get back involved. But we’re moving to turn those assets into cash and finish the office sale process.
Todd Thomas: Okay. Got it. And then on the $15 million acquisition in the quarter, can you provide a cap rate and initial yield on that transaction? And then, are you seeing more deals begin the surface? And what’s the company’s appetite like for additional investment opportunities?
Brendan Mullinix: Hi. It’s Brendan. That acquisition was actually a forward purchase agreement that we acquired a shell. We negotiated that deal in early last year and early in the spring. The anticipated stabilized yield there we’re looking at around 5% to low 5% range. In terms of additional acquisitions, again, that one was put under contract last year. While we’re monitoring the purchase market, we remain as I’ve said very focused on stabilizing more of the development pipeline. And as that happens, we may look to expand the pipeline in our land bank as we announced this quarter with the Columbus transaction and alternatively we may revisit the purchase market.
Todd Thomas: Okay. And just last question, I guess maybe Beth, can you just remind us of sort of the policy in place to transition development into service. Just wondering, if there’s a time line either once completed, whether leased or not for some of the projects that are available for lease today, that are complete or just about complete, where they might be placed into service. And then in terms of the leasing, the additional spec leasing I guess, along with that, do you expect to have leases executed before the projects are placed into service?
Beth Boulerice: Yes. So our policy is, if the asset is 90% occupied or one year from substantial completion of the base building. So, when these assets many of them are core and shell complete as of today, but they are not placed into service until that occupancy mark is met. So that will be later at the time. We’ve put in our supplemental some estimates on when some of the leased properties are going to achieve that occupancy and placed in service date.
Todd Thomas: Okay, got it. So if I’m looking at like Mt. Comfort and Ocala in Central Florida those would be transitioned whether they’re leased or not, they would be transitioned into service during the first quarter of 2024. Is that…?
Beth Boulerice: Exactly. Right, one year.
Todd Thomas: And then so when we think about the progress on leasing for those projects, is there any anticipation of continuing into service without executed leases in place or based on negotiations and the current leasing pipeline and demand do you expect to have leases executed before they would be transitioned otherwise?
Beth Boulerice: We’ll see. We’re working on that now and time will tell on that.
Todd Thomas: Okay, all right. Thank you.
Operator: [Operator Instructions] Your next question comes from the line of Camille Bonnel with Bank of America. Please go ahead.
Camille Bonnel: Good morning. If I caught correctly in your opening remarks, the mark-to-market opportunity within the portfolio is around 30%. I guess, my first question is was this comment on a GAAP or cash basis?
James Dudley: It’s on a cash basis. Camille this is James. And it’s 23% today. And if you compare that to the ending rent it’s 39%. And then we also track the number. The 31% number is basically the ending rent versus the rent — the in-place rent that is escalated by the escalators in place in the lease and compares the two. So three different numbers, but as of today we think we’re 23% below market.
