Nick Yulico: Thanks, Eric.
Operator: We will take our next question from Alexander Goldfarb with Piper Sandler. Please go ahead.
Alexander Goldfarb: Hey, good morning. Just, first question is on development and your appetite for using capital. You said that cap rates overall for stabilized products are still sort of in flux. The debt market is clearly better for apartments, but CMBS, which you guys don’t use or Fannie, Freddie, whatever, that’s still €“ well, I guess, more CMBS remains sort of closed. So as you guys think about development, do you think more about starting on your own account or do you see the potential that you’re better off buying from other people who may run into financial difficulty, where on a risk-adjusted, you’re better off to pick from someone else rather than starting ground up from you guys?
Brad Hill: Yes, Alex, this is Brad. I’ll start off with that. I’d say it’s both. We’re looking at both opportunities, both on our balance sheet and then working with partners, as well. I mean what we haven’t seen broadly yet are developers kind of spitting sites, spitting land sites. We’ve seen it a little bit, but it’s been sites that we’re not really interested in. We’ve not seen the well located sites that have gone under contract kind of being let go, we’ve not seen that yet. So we will keep our eye on that for sure, because I think that’s where the opportunity presents itself for our on-balance sheet developments where we can pick up some of those land sites that other people drop. I think what we are seeing short term is exactly what you mentioned is the difficulties in the debt market kind of showing up through some of our development partners, maybe they can’t get the debt financing for some of their developments going or equity partners backing out on deals.
We are seeing that short term. We’ve got a team of folks this week that are out at NMHC and we’ve already got a number of e-mails of projects, JV development opportunities that are a follow-up from that, where their shovel-ready, could start mid-year. So we’ll begin evaluating those because I think those are the ones that are going to be impacted by the debt market and just how tight that is right now. But the long story is, we’ll look for opportunities in both of those areas.
Alexander Goldfarb: Okay. And the second question is just going back to Nick’s question on sort of state of the markets and the employment. One of the common refrains about the Sunbelt is, it always has a lot of supply, but the economic growth seems to be more than offset and you spoke about that relative to your ability to manage higher taxes, higher insurance. As you look at this year, and based on what your property managers see among the resident base and employment stats within your markets, do you see any like substantial risk that employment or economic job growth in your markets will not be able to exceed the new supply coming on? Or as you sit here today, your €“ as you guys sit around the round table, you’re like, there are a few more markets that we’re more concerned about now than we were back in, let’s say, November, when you guys were assessing how 2023 would look?
