Jeff Witherell: Yes, and then, John just as a reminder, that was based on in-place NOI. On a fully stabilized basis, it’s probably around 6% yield.
Operator: The next question is from Anthony Hau with Truist. Please go ahead.
Anthony Hau: Hi, guys. Thanks for the question. I just noticed that occupancy is down in Memphis, like I think 2.3% recreating, providing color on that?
Jim Connolly: Yes. We did, we had one tenant had a payment issue and they went into bankruptcy and we restructured their lease. So we split that space in half. The — that extra space just came on the market recently and we’ve got a longer term deal with a new company that was formed after bankruptcy. We also collected all the rent that they owed us as part of it too.
Anthony Hau: And if you don’t mind, what industry is that? Is it like, I got 3PL or?
Jim Connolly: I think it was more printing.
Anthony Hau: Okay. Thanks.
Jeff Witherell: Thank you.
Operator: The next question comes from Bryan Maher with B. Riley Securities. Please go ahead.
Bryan Maher: Thanks and good morning. Just one or two from me, are you guys starting to see any slowdown in construction activity in your markets that you would chalk up to the higher interest rate environment?
Jeff Witherell: Hey Brian, yes certainly. I mean I think that’s part of it and as you can see there’s some softening in the big box. You know you see 700,000, 800,000 million square foot buildings kind of sitting there, even in parts of Columbus. So I think it’s a combination of both.
Bryan Maher: And then as it relates to getting leverage down successfully, and congratulations for that. Is that increasing your appetite to start to look at new acquisitions? And if so, would that be funded with, you know, kind of a combination of cash and debt, or would you skew towards some capital recycling activity?
Jeff Witherell: So, and I think as we indicated, we’re not going to increase leverage. So we’re not going to go out and start buying properties on the line and move up leverage. So that’s not going to happen. We’ve also indicated that we’re not going to be issuing dilutive equity at this time. So we’re not interested in getting out there. So as we see deals that match up with the cost of our equity, we would certainly entertain that. We’re still seeing some softening in the market. We’re seeing deals get pulled by sellers. There’s still some negative leverage in certain parts of the country that seems to be waning. I’m not so sure that’s a great strategy, but some people are employing that. So I don’t think that we have a real appetite for that. We are in discussions with people with OP units. So we’re doing — we’re having a lot of discussions but we’re certainly not going to move leverage up. And that — is your second part of that question that I missed?
Bryan Maher: No, you know, it’s mainly just, you know, how would you fund in, you know, capital recycling? You’ve pretty much addressed it. That’s all I have. And congratulations on getting out of New Jersey.
Jeff Witherell: Yes, thank you.
Operator: The next question is from Barry Oxford with Colliers. Please go ahead.
Barry Oxford: Great. Hey, Jeff, you touched on acquisitions, but are you saying, look, there are some runoff opportunities in the market, but look, across the board I just don’t like what I see from a pricing standpoint?
