And it looks like it’s — if things pencil out, we will look to start that building sometime in the third quarter of this year. There are strong boots on the ground people like MRP. BBX Logistics is actually the name of our partner their subsidiary of PBX Capital. They’re a public company. They’re a big flip public company, very strong financially. They’ve been around since the late 60s. So there is a very good synergy between the two companies culturally as well as personally. So we’re excited about this opportunity.
Bill Chen: Got you. And just so that — could you talk about kind of the relative mix of the equity ownership? I mean would FRP be able to — is this over 50%? Like would this be another equity line item? Or would it be like consolidated? Like could you talk about that a little bit?
David deVilliers: We’re going to be the controlling ownership interest. We’re probably going to be — because, again, we are holders and these guys are sellers. So we would rather be buying, take a number, 10% to 20% of their ownership at retail and holding and keeping our 80% or 90% at wholesale as opposed to getting so much into our partners that it would be — would add a lot of money to the basis of our properties. So we’re kind of treading water in that direction.
Bill Chen: Let me just clarify that. Your — so we — FRP will be the controlling holder in this project where we’ll wind up with 80% to 90% ownership. Is that correct?
John Baker: Yes.
Bill Chen: And I guess their role is to be boots on the ground, almost like the actual developer, they don’t know work. Is that kind of the nature of the relationship?
David deVilliers: Yes. So we will be actively involved. I mean, again, we’ve been in the industrial business for over 30-some years. And so they’re going to be late lean on us for the design. We certainly have done a month of these. They have, to some extent, too. And so I think it’s a really good relationship and a good balance.
Bill Chen: Got you. Okay. And I mean, if I — if you don’t mind, if I probe like what are we underwriting potential like stabilized unlevered yield on a project like this?
David deVilliers: We haven’t decided, but it’s been on a straight return on cost basis. it’s going to be above 6.5% or we won’t start it.
Bill Chen: Okay. Okay. Okay. That’s very helpful. And I mean is there a possibility now like in the Maryland in the Investor Day, we — you guys have provided that a lot of those Maryland projects could potentially come in at an unlevered yield of 8% or even above 8%. Like is there a potential for this project to kind of hit those kind of numbers?
David deVilliers: Sure. We hope so. The market is big and is strong and there’s little vacancy. So you’ve been — you understand the way the game is played, and we don’t go — we don’t start these things unless we feel pretty good about the symbol-ready condition. We’re not required to do anything. We’re just — we want to get to the point you get the contractors ready, get the numbers, get a guaranteed maximum price, look at the market, all of the above.
Bill Chen: Speaking on contractors, have you seen that the GC world kind of like, call it, capacity pull it to slack whatever you want to call it, just get a little bit better from like a development perspective?
David deVilliers: If you’re saying, are there prices getting tighter? Is that your question?
Bill Chen: The price is getting better, time lines improving, whatever you may be or just cost coming down, being able to move faster, more willing to work with you, et cetera?
John Baker: All of those your comments, and thank you for that, Bill. All those comments are positive. Yes. As you know, we have the 259,000 square foot building under construction now. When we — we’re building that in-house, effectively in our subcontracts. So we have — but from that standpoint, we’re seeing pricing come down a little bit. We’re seeing time frames coming down. To some extent, they’re not back to where they were, but they’re getting better.
Bill Chen: Got you. Got you. I appreciate the feedback on that. I have a big question, I’ll say for later, but I just want to provide some commentary, I think that I want to thank the team for splitting the stock. I know that we really — no one’s really going to wind up owning more shares. But I think that — I really do think that it will improve liquidity as just the absolute share price goes lower and the bid ask in terms of absolute kind of pennies could get a little tighter. I think that will help with the trading. So thank you for taking the initiative to take that action. I think it really demonstrates to the shareholders that you guys are thoughtful. You guys are thinking about that. And I also just want to commend the company for the share buyback.
I’ve said this many times before, I think buying back at $54 is a great price, especially in light of the recent transaction that I’ll talk about. But I think that even at today’s price, in the low 60s. I think it’s still a great use of capital. I know there’s — a lot of the cash is earmarked for a lot of projects. But I think we’re also at a point where the company is generating a lot of cash. So I will always be a cheerleader for more share buybacks. So I want to really commend you guys for doing the share buyback. And I’m just nudging that it’s — more share buyback will always be better. And so which — so my final question is sort of — the — we — Martin Marietta recently announced the deal to two transactions, Bluewater Industries and there’s one other transaction.
