Matt Windisch : Yes. So Josh that was the main asset in terms of, vacancy within the U.S. portfolio. So we did have a tenant move out at the beginning of the fourth quarter. What I’d say there is we have a very, very low basis in that asset. We’ve owned it for a long time. Obviously, the Seattle market is challenged right now. That all being said, the leasing activity, kind of if you look at Q4 to even Q1 overall, has definitely picked up. And I think there we have the ability, just given our basis, to do deals. And so, we’re confident that we’re going to be able to get that property leased, over the next 12 to 18 months. And we’ve got the right team working on it, and we’ll get it done. The other thing I’d mention is there’s, one other building there that is currently occupied as part of that complex.
And we’re in discussions to potentially sell that asset and get cash that would, in essence, pay down the entire debt on that entire three-building portfolio. So we feel pretty good about that asset.
Bill McMorrow : Yes, I mean, Matt, the only thing I’d add, that asset came to us through a sale of an apartment building that we exchanged into that asset. So to add to Matt’s point, we have an attractive cost basis in the asset. And it was somewhat of a, I don’t know if I’d call it unique, but the tenant that left, it’s an extremely large technology company based in the Seattle market that has built out their own campus. And so it had nothing, no reflection on the asset. It was just the business plan of that particular tenant.
Josh Dennerlein: Thanks for the color, guys.
Operator: Thank you. [Operator Instructions] Our next question comes from Tayo Okusanya. Tayo from Deutsche Bank. Go ahead, please.
Q – Tayo Okusanya: Yes, good morning, everyone. A lot of positive commentary just around opportunities to grow the loan book. Again, you guys are one of the few names out there that actually have you know and have enough capital to do that, I’m assuming again you’re going to price accordingly for that. But on the flipside, I wonder this capital stopped becoming too expensive for someone, who wants to take a loan and actually there’s going to be less construction activity going forward, so less opportunities. So actually originate loans. Just kind of curious, how you think through those two things to help us kind of get a better sense of just I know how much the loan book could grow over the next 12 months.
Matt Windisch: Yes. Good question, Tayo. Yes. I mean, I’d say certainly, construction activity overall is, has reduced from where it was a couple of years ago. Obviously, rates are higher construction costs have gone up. So there’s no question that housing starts as an example, are slowing. I think, if you think about that side of it, there’s the flip side to that. If you look at the traditional lenders in the space, the regional banks of the world, some of the private credit funds that use back leverage work. We’re doing this all unlevered, have had been less active in the market. And so, what we feel like is that the overall pie may be shrinking. But we think, with our expertise and the team we brought on from Pacific Western Bank and our reputation in the market, we’re going to continue to get a bigger and bigger piece of that pie.
So we feel confident, the pipeline kind of speaks for itself. We have over one billion, we’ve already signed up and we’re in closing on. So we feel like we can continue to grow the book. I mean the other side of it too is, in terms of payoffs, some people who are looking for permanent financing are not paying off as quickly as we expected. And I think that’s a good thing, because now we have fully leased properties that are still being, we’re still getting paid construction loan spreads on those. And so I think in terms of the runoff of the book, it may be a bit slower certainly for the first half of this year.
Q – Tayo Okusanya: That’s helpful. Thank you.
Operator: Okay. And this concludes our question-and-answer session. And I would like to turn the conference back over to Bill McMorrow for some closing remarks.
Bill McMorrow : Thank you, everybody. And as I will say too, we’re always available any of us to out for any further follow up, with you. So thank you very much and have a great day.
Operator: And this does conclude the conference. Thank you for attending today’s presentation. You may now disconnect and have a great day.
