Matthew Erdner: Got you. Thanks. And then in terms of tenant recycling and ones that didn’t renew, could you talk about the leasing activity and what kind of tenants are looking to go into these properties?
John Albright: Yes. I mean, we’re having still good leasing activity, especially on our newer acquisitions at West Broad and Collection and Ashford Lane. And it’s really a little bit trying to kind of get the right mix of tenants on some of these properties as we’ve done a lot of the heavy lease-up. And so for instance, soft goods wants to be next to soft goods. And so tenants basically don’t want to commit until the other tenant commits. And so we’re playing that dance a little bit. But the activity has been very good. And then Legacy, we’ve seen an uptick of activity on the WeWork space, which has been great to see. We were working with a fitness tenant for about six months, who wanted to take all the space, and it would have been a fantastic use for the property.
And it just was the economics of the deal, given how much it would cost to do the build-out. We thought it just didn’t really make sense. So we terminated those conversations. And now we’ve picked up conversations on regular way tenants. And that activity has been very, very active in the last 45 days. So we’re hopeful there.
Matthew Erdner: That’s helpful. Thank you, guys.
Operator: Our next question comes from R.J. Milligan with Raymond James. Your line is open.
R.J. Milligan: Hey, good morning, guys. So in the quarter for the two properties that were sold, a pretty low cap rate, especially given the interest rate environment. I’m just curious when those deals were struck and who were the buyers?
John Albright: So on – I’ll start with General Dynamics, the office building. That was more of a syndicator. And that’s where we’re seeing a lot of a office buyer interest is from groups that are syndicating out equity and looking for attractive below replacement cost properties with good yield and good credit. On Westcliff, the low cap rate is a little bit misdirected in that there’s a lot of leases we did recently. But those leases don’t come online until next year. So the cap rate does go up next year. But that was a value-add group that was local to that asset.
R.J. Milligan: Got you. Thanks. And then can you talk about the decision to buy back some preferreds in the quarter versus buying back stock and then the thought process about either buying back preferreds or stock going forward?
John Albright: Yes. I mean, we have set rates or set prices on both, where we find those to be attractive on the preferred, buying at the discount to liquidation preference. We find that very, very attractive and a meaningful pickup for our NAV for our shareholders. So it’s a way to buy your – somewhat your liabilities at a big discount. And then the stock, obviously, where we’re trading at high 9s dividend yield and way below replacement, our NAV, we obviously have a set price there that we will be very active in the buyback program if the stock continues to be at certain prices.
Matt Partridge: And R.J., just to expand on John’s comments, these are facilitated through 10b5-1 plans. So it’s not like we’re resetting the price all the time. It’s established at a point in time and then it stays in place going forward under the program.
R.J. Milligan: Got you. And then just one more question on sort of the broader environment, and you guys talked about this in your comments about the time to get to rent commencement. And I’m just curious what you’re seeing overall in the sector. Is it taking longer? Are you – and I think what we’ve been hearing from the peers is that the time from signing a lease to getting open is taking longer. And I’m just curious what’s driving that.
