Laura Clark : Hi, Vince, I’ll take that around the transaction market. We continue to see capital flowing into the Southern California market. And interestingly, we’re seeing new market entrants into industrial. And that has been, I’d say, an incremental change over the past quarter or two. So although, yes, you’ve certainly seen an increase in interest rates and certainly availability of that capital can be challenging. We — there continues to be transactions occurring in the market and cap rates really haven’t moved but materially, maybe up about — only about 25 basis points. Buyers are still accepting lower cap rates for properties that have mark-to-market and are even taking on — waiting some time to get to stabilization.
So there’s a property that traded just recently in the North Orange County, Mid-Counties market above $50 million transaction, going an initial cap rate of 0.4%, stabilizing about 5 years from now, a little over 5%. And that was and that was a new entrant to the market from a buyer perspective. So there continues to be even with the increase in interest rates, there continues to be capital flowing into the market.
Operator: Our next question comes from the line of Mike Mueller with JPMorgan.
Michael Mueller : Just a quick one. I was wondering, can you talk about the yields that you’re expecting on new repositioning starts compared to the overall in-place yield on that pipeline and what you’re achieving on acquisitions today?
Howard Schwimmer : Hi, Mike, it’s Howard. Those yields vary. Some of them are legacy acquisition that we might have bought at the peak of the market that might have a bit of a lower stabilized yield, while there’s others that have substantially higher, above that 6.4% rate stabilized yield that we’re moving. So in terms of anything we’d look to buy, we’ve absolutely reset the targets in terms of those stabilized yields we’re seeking. But again, those also have to do with when we’re actually going to get to the asset that we can stabilize. We’ve got quite a few examples of assets we’ve bought recently that had very strong in-place rents in place where we’re able to entitle properties and then start construction maybe 2, 3 years down the road and get to even higher stabilized rates on top of that. So we’re really selective. And as far as bringing in some of these assets, that strategy definitely is different than it would have been looking back a year or two years ago.
Laura Clark : Hi, Mike, and just Michael, a little bit more color there. We added 7 new projects to reposition a redevelopment pipeline or current in process, representing about 600,000 square feet of properties on those investments, the yield — the aggregate stabilized yield is 6.5%. So actually coming in a bit above the aggregate yield for everything and the repositioning, redevelopment pipeline.
Operator: Our next question comes from the line of Vikram Malhotra with Mizuho.
Vikram Malhotra : Just two quick ones. So first of all, on the mark-to-market, the changes if I just run the math sort of forward, I would assume that your negative 1% rent growth had a lot of variability by market and by size for there to be like a 600 basis point, 700 basis point impact. So given that you said it was larger boxes, can you just also kind of give us a sense of what the ranges were to impact? And if I’m correct, if I roll all that forward, assuming current conditions, I sort of get to your mark-to-market being by 25% to 30% by the year-end ’24? Is it fair?
