We’ll see how these things go. But yes, we’re seeing a lot right now. And I think that’s the first step towards more normalized institutional participation once we can illuminate where values and levels are, especially in this environment where we’ve got falling rates which I think will certainly ease the liquidity pipeline and get things going again.
Operator: And our next question is going to come from the line of Caitlin Burrows with Goldman Sachs.
Caitlin Burrows: Maybe just a question on leasing broadly, the starting rent per square foot on the leases signed in the quarter was pretty high at $105 per square foot and included, as you mentioned, some leasing at 280 Park and 245 Park. So I was wondering, could you talk more about how tenant activity and leasing activity is shaping up across the portfolio, including some of the more affordable buildings?
Steven Durels: Well, yes, the rents were high because we did some big deals on Park Avenue and they were driven by some of our higher price point buildings. But as we see it right now, looking at the pipeline of the 400,000 square feet of leases that we have out right now, I’m just looking at this real quick, every single one of those with the exception of one moderate-sized deal is in more of the moderate price point buildings. So 485 licensing Avenue, 1,185 sixth square bar, 711 third Avenue things like that. So those are rents that are generally in the $60 to $70 price point as opposed to the triple-digit rents that you saw us print on some of our Park Avenue buildings at the end of last year.
Caitlin Burrows: Okay. Got it. And maybe just as a follow-up to that kind of list of deals that you’re looking at, do you have a sense for if those tenants are ones that are generally renewing space they were already in. And if they’re alternatively like moving in from somewhere else where they might have been coming from?
Steven Durels: Yes. Well, I mentioned earlier that of the $1.4 million pipeline, it’s roughly 50-50 is between renewals and in new tenants. And on the renewals, 95% of those are tenants that are renewing in place as opposed to relocating to a different building or a different space within our portfolio. But what’s not really articulated well as far as saying it’s 50-50, is that a good number of our — of the deals that we’re working on right now have significant expansion components, whether they be renewal deals or new tenants coming into the portfolio.
Caitlin Burrows: Sorry, by expansion component you’re saying they are expanding or they have an option to expand in the future?
Steven Durels: No, meaning they are making — they’re searching for larger spaces.
Operator: And our next question comes from the line of Nick Yulico with Scotiabank.
Nicholas Yulico: I just wanted to go back to 2 Herald and be clear here. Did you already own any piece of the mortgage there or buy it at some point, like in the last year, and that’s what’s affecting the net payment number that you’re citing?
Marc Holliday: I don’t understand the question.
Matthew DiLiberto: Did we — is it third-party debt? Or do we own any of it? Is that your question, Nick?
Nicholas Yulico: Yes, exactly.
Matthew DiLiberto: All third party. We didn’t own any.
Nicholas Yulico: Okay. And then just on the second part, was there also — was there any piece of like a mezz or a prep piece there that also affected the ability to get higher equity in the joint venture…
Marc Holliday: Is the Wall Street Journal asking .
Nicholas Yulico: I’m just trying to clear up, it’s not very clear in the — in your press release here.
Matthew DiLiberto: No. The answer is no. None of that. .
Operator: And I would now like to turn the conference back over to Marc Holliday for closing remarks.
Marc Holliday: Okay. This was a good 2 Herald conference call. And I’m glad we got some other things in there as well that aren’t in the ASP portfolio and appreciate very much those that muscle through to the end. We thank you for the support, for listening in, getting to work on the phone, and we’ll talk to you in 3 months. Thank you.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.
