Marc Holliday: Yes. I mean as you know, they’re still in the deal. It’s a minority interest, but they still have an interest in the asset. And beyond that, I just again, don’t want to get into how they’re thinking about it and what their motivations were.
Operator: Our next question is going to come from the line of Ronald Kamdem with Morgan Stanley.
Ronald Kamdem: Great. Just two quick ones. So first is just on the trips to Asia that you’re talking about after this call. Just wondering, was that sort of related to the One Vanderbilt or the 245 Park JV? And maybe can you provide an update on how conversations are going? And any sort of timing if that deal is still [indiscernible].
Marc Holliday: Everything, I’d say, our whole business plan is on the table, not just I know there’s a lot of questions I’m getting about [indiscernible] because I mentioned it. We do this like every couple of weeks, not to Asia, but all over the country in different parts of the world, we’re visiting partners, lenders and on these trips, we make them targeted, but we’re talking about everything that’s part of our business plan really for ’24 and that’s how we got to get it done. I mean it’s — you got to start early if we want to get it done by the end of the year. And — and so things like OVA, 245, I don’t know, 7 days and everything else we talked about in December, yes, I mean, there’ll be discussions we’re having on each and every one of those. On OVA, in particular, [indiscernible] do you want to give an update?
Unidentified Company Representative: Yes, consistent with the message we delivered in December, we’re in active negotiations on the interest these negotiations that we’re involved in, they’re confirming exactly what we said, which is there’s global and domestic demand for this, it’s a one-of-a-kind asset. And that’s obvious to every investor, we’re speaking and negotiating with. And as Marc said, we’re still on plan for this year.
Ronald Kamdem: Great. And my second question is just taking a stab at 2 Herald and taking a step back. So the alternative strategy portfolio has 10 assets. And this 2 Herald, congrats on the deal, gets sort of done? And what looks like it’s an economic sort of decision from the bank. So the question is sort of like out of all these other assets in the ASP, is 2 Herald just unique? Or are there other assets that look and feel the same and which ones where you could have such an outcome?
Matthew DiLiberto: Yes, it’s Matt. So first all, correctly, it’s not 10 anymore. It’s 9 assets because 717 was in there, too, and that’s now sold. But look, in creating this or segregating this portfolio, we said there’s very little, if any, NAV carried for these assets on the street, don’t generate a lot of any earnings, don’t have book value. So they kind of were unique from the rest of the core portfolio, but there’s a lot of interesting opportunities that may come out of them. 2 out of the 10 happened in the first 30 days of the year. 17 [indiscernible]. The — are there more opportunities come out of there? Yes, we’re working on a couple of other things, but working on a lot. So we’re going to — which is what we’ve been doing with these assets and again, when we put them off in its own portfolio.
I can’t characterize whether any of them are exactly like a 2 Herald or exactly like a 717. But the reason we are carrying these assets the way we are is because there’s embedded value that might not be appreciated, and we’re going to look to mine it.
Operator: And our next question is going to come from the line of Michael Griffin with Citi.
Michael Griffin: Maybe just a question on the leasing pipeline. Can you give us a sense if it’s mostly new or renewal leases that are there. And then on the concession front, is it fair to say that it’s stabilized or maybe even decline somewhat, particularly in a very high-performing submarket like Park Avenue?
Steven Durels: I’ll take the second part first. I don’t think the concessions have come down. I think they’ve been stable for all of last year. I think there’s a little more strength, particularly on Park Avenue, to your point, on the renewal side than there was on — versus new deals, but it’s still expensive from a landlord’s perspective as far as the concession packages go. But I don’t — I think we hit the stabilization point early last year. So that’s the good news of that story. And then as far as renewals versus new deals it’s driven sort of 50-50 between new and renewal, but each of the — a lot of our bigger renewals also have very significant expansion components in them. And that’s, I think, pretty noteworthy because it’s — if you really went through every one of our deals that are out there to see so much growth, particularly within tenants in the financial services sector, but also some of the for tenants that are coming through our door.
We’re seeing a lot more growth, a lot more confidence, a lot more willingness to commit significant capital by the tenant as they look to rebuild and rebrand their spaces. So that makes us all feel pretty good about where we stand right now.
Michael Griffin: Great. That’s helpful. And then just on the DPE book, I’m curious if you’re seeing any more appetite or opportunities for future originations given the distress and dislocation that we’ve seen out in the market?
Marc Holliday: Well, that’s really the underpinnings of the opportunity fund that we’re in the process of marketing and raising. We see a lot of opportunities. I mean we see many, many opportunities. But obviously, no different than in prior markets, only select ones that we think are of interest to us and where we want to deploy our capital. But the opportunity set so big that we want to have some third parties alongside with us to take advantage fully like we’ve done in past recoveries because I’ve always said, a lot of the money is made in the first year or 2 coming out of recovery. I feel like that’s where we are now. And I want to make sure we got a ducks lined up to take advantage of things. We very possibly may act preemptively and then backfill with the fund.
