Howard Lorber: Yeah. Look, it has quite a bit of momentum. I can give you examples, but I don’t want to brag, so not going to do it. But I mean, we’ve opened projects in — actually in Miami, where we were shocked how quick they sold and the prices that we’re getting for them. And I think that’s also true all the way — pretty much in all of South Florida, it’s sort of robust. And I think part of the reason is the fact what you were asking about, about the inventory. If there’s really no resale inventory, the only inventory or the biggest inventory on the market is the new development. And realistically, when I speak to people about it, I think it’s pretty simple. If you’re worried about interest rates, the good news about new development is you don’t pay upfront, you don’t close.
You put down deposits over the period of time that the building is started and being built, and probably you end up having cash of about 40% to 50% by the time it’s ready to close. And when it’s ready to close, which is usually, let’s say, two to three years after we started sales, you are sitting with a — probably, if you’re going to mortgage it, probably lower interest rates, we would assume so, two or three years from now. And also with inflation still around, you’re going to own something that you couldn’t build again for the price — or couldn’t buy again for the price that you bought it at two or three years before. So that’s sort of an interesting way to look at it, which I think is like one of the reasons it’s — that market is so strong.
Dan Fannon: Great. Thanks for taking my questions.
Operator: We’ll take our next question from Soham Bhonsle with BTIG. Please go ahead. Your line is open.
Soham Bhonsle: Hey, good morning, guys. Hope you’re all doing well. I guess, first one on the industry headlines. I know you’re not commenting there directly on the cases, which I understand. But I guess you guys are in somewhat of a unique position in that you have some experience navigating some class action lawsuits in your Leggett business. So, I guess is there anything that you can draw from your experience just going through that? And are there any parallels that you see in the cases that are being brought against the brokerage industry today?
Howard Lorber: We don’t really want to comment on it. I mean, obviously, we have a long experience in it, and we’re hoping that, that experience is going to help us navigate this. And if it turns out as good as the other one, the last one — the last big one we did, then we’d be pretty happy.
Soham Bhonsle: Okay. And then, on the new development side, it definitely feels like a differentiator, right, just because of the lack of supply and because developers need that service. I guess, can you just give us a sense for how large that business is today? And then, how much more can you scale that business up going forward?
Bryant Kirkland: Soham, thanks for that question. So that business has been gradually growing throughout the year. We do — and you can go back to prior conference call scripts and you see every quarter we’re giving more numbers coming into the pipeline over the last year. So right now, we have about $21.5 billion in pipeline that’s currently on the market. That doesn’t include many other projects that are coming to market. And that number is up from about $20 million last quarter — $20 billion, excuse me. So, $21.5 billion in the pipeline.
Howard Lorber: And just to give you some additional info, I think probably about $13 billion or $14 billion of it is in South Florida.
Bryant Kirkland: That’s about right.
Howard Lorber: Yeah. $13 billion to $14 billion in South Florida.
Soham Bhonsle: And so, is there any way we could sort of get a sense for like when this volume should start trickling into the P&L, right, over the next couple of years? Is there any sense? Because, I mean, that seems pretty meaningful there if you just apply that volume against sort of…
