Thomas Toomey: Wes, Toomey, again. A couple of points to make. We still accrue our prep during that period of time. So second, this particular asset, 20% market rents below pre-COVID. So, it’s still trying to bring itself back. And the truth is Santa Monica is a great market. And so we will see how it plays out. I think it’s again one of those, we like our options. At this juncture, we will see how they play through.
Wes Golladay: Got it. And then I think it was a few quarters ago, you had mentioned when a tenant moves out due to the higher rent increase, you typically have a large move out €“ move up in rent. Are you still seeing that?
Mike Lacy: We are still seeing it, not to the same level as we saw probably one quarter or two quarters ago, but we are still experiencing that and like to see the same more at least the next one quarter or two quarters.
Wes Golladay: Got it. Thanks everyone.
Operator: Thank you. Our next question is from Haendel St. Juste with Mizuho. Please proceed with your question.
Haendel St. Juste: Hey guys. Thanks for taking the quests. Just two quick ones for me here. Want to follow-up on your comments on the transaction markets. We were at NMHC 2 and heard a lot of chatter about the stalled market, lots of capital willing to buy, but fewer sellers and a pretty sizable bid-ask spread. So, I guess I am curious about how you are thinking about the market clearing cap rates in the current environment and what you are willing to pay? And when do you think we will get back to a more normalized level of transaction activity? Thanks.
Joe Fisher: Yes. I think you are right, we got to mention that 10% to 15% delta in terms of buy/sell price discovery window. And it’s €“ we are unsure at this point which group is going to move which direction. But I would say you do have a pretty good buyer set out there in terms of unlevered buyer pools or individuals that already have capital raised. They can find pretty compelling IRRs when you are buying in the high-4s, you get to a 8% unlevered IRR. So, be it high net worth pension, closed-end funds, a lot of private capital is definitely efficient around the space. And I think once again, plenty of capital looking to come over to multifamily. So, for us, in terms of our ability or willingness to transact at certain levels, obviously, we are fairly focused from the cash flow accretion standpoint.
So, whatever allows us to get cash flow lift, if we could sell at x and then redeploy into assets that are undermanaged and get a day one left with our operating platform, we are more than happy to transact at different cap rate levels as long as that opportunity to redeploy is out there. And so that’s probably the biggest thing we are thinking about in terms of meeting the market and where that pricing comes in.
Haendel St. Juste: That’s helpful. Curious on maybe one set of maybe potential sellers here, I heard a lot of talk about merchant builders who clearly started project during maybe different economic times or different cost of capital and capital expectations. So, curious if you are getting more inbound calls from that set of potential sellers, how you maybe would assess or rank that opportunity? And if that’s an area where we expect to be more active in the coming quarters?
