Operator: Thank you. Our next question is from Blaine Heck with Wells Fargo. Please go ahead.
Blaine Heck: Several of your peers in New York have noted that the pace of leasing activity in properties with kind of middle of the market rents has picked up recently. I guess are you guys seeing the same and can you talk a little bit more about any changes in the number, the size and the underlying industry of the prospects you guys have for your larger vacancies, especially in the New York portfolio?
Albert Behler: Yes, I would say, Blaine, that leasing has picked up across the board, I would say because you know we have a very diversified portfolio of smaller tenants, midsize and larger tenants. The very large tenants have taken occupancy a while ago, but I think there are some tenants who are realizing now that the decisions they made are not sufficient, which is good news. Some of them are thinking about maybe taking more space because initially they were thinking about the work from home situation taking longer. They are realizing to be competitive long-term. This is not a solution and they are changing their focus. So that’s what we see in our segment here in New York.
Peter Brindley: And I would add by saying I do think leases have taken longer for a variety of reasons, and velocity in the broader sort of Midtown market has not been great year-to-date. Blaine, I will tell you that we feel a heck of a lot better about our pipeline relative to the way we felt about it earlier in the year. And a lot of that activity is centered around 1301 which gives us an opportunity to achieve some occupancy increasing leasing going forward, and that of course contains some base floors where we’re talking about rents around $70-ish per square foot. So we have quite a bit of activity. We have proposals that cover the entirety of that vacancy. We of course need to convert on the opportunities in front of us, but suffice it to say that the pipeline, Paramount’s pipeline I’ll say, feels quite good relative to where we were earlier in the year.
Blaine Heck: And Peter, has the complexion of the kind of pool of prospects changed at all as far as the underlying industries, or is it still mostly kind of traditional FIRE type tenants? A – Peter Brindley Predominantly FIRE tenants are the most active. That’s reflected more broadly in the market, but we’ve also experienced that. But we’ve seen some media companies that are now pursuing several of our opportunities, some professional service companies, law firms. We appeal to law firms in several of our buildings. So I don’t know that the complexion of industry type has changed all that dramatically, but we’re just seeing more and more tenants acknowledging the importance of the office and deciding that they want to elevate what they have to offer their employees and they’re looking to find their way into better real estate.
That’s what’s compelling them to transact in this market despite all the challenges. And we think we’re doing a good job appealing to those prospective tenants right now. And part of that I think has been supported by The Paramount Club which we referenced in our remarks. Prospective tenants and existing tenants have responded very well to our plan. It’s not just like every other amenity center, it looks and feels a bit different. It will be market leading, and it’s resonating. I think it’s helping to support not only getting initial interest but getting some of this interest to lease.
Blaine Heck: Great. That’s really helpful color. Maybe for Wilbur, can you just talk about the financing market a little bit more in general? And then, also specifically on the negotiation process on the 300 Mission loan. I guess how much scrutiny was there on current operations and future lease expirations at the building? What was the LTV that was arrived at on the loan? And how was the value determined? And then how was the length or term at 3 years determined as well?
Wilbur Paes: Sure. Look, the lending market is pretty much shut down. I don’t know how else to put it. There is no liquidity in the market for new financings. And so, I said this on our last earnings call, that most of these things are going to be negotiations and refinancings and extensions with the existing lender. The execution at 300 Mission obviously was a superior one, probably one of the best in the marketplaces, but it was a testament to, one, the sponsorship on the asset and the relationships with the lenders. And we have been very, very transparent with our lenders. We have great relationships. We talked about this very early on, what our vision for the asset was. We’re the best people to navigate this environment, and our lenders and our partners were very, very supportive and we achieved a tremendous, tremendous execution here.
I don’t want to talk about LTVs because everybody is struggling with what the V in that equation is, but there was a lot of discussion about the time and term we needed to be able to get through the business plan and that’s what we shared very closely with our lenders, and we were successful.
Operator: Thank you. Our next question is from Vikram Malhotra with Mizuho. Please go ahead.
Vikram Malhotra: I guess just with all the leasing that you outlined this quarter, the pipeline, Wilbur, would it be possible to give us sort of how do we think about the occupancy trajectory, the lease trajectory as we kind of go into ’24, just given there are several moving pieces?
