You saw us successfully navigate through that last quarter at 245 Park. We’re very focused on OVA. It was a high priority of ours, we’re going to be putting a lot of pressure to get that done. And I would expect to see good momentum for that in the next few months.
Steve Sakwa: Great, thank you.
Harrison Sitomer: I’ve been very happy with the response we’re getting. Obviously, that we got on 245 Park Premier Asset Premier location and that we’re getting on One Vanderbilt multiple party, counterparties, highly interested different parts of not only Asia but around the world and working hard to try and get something done by year-end, and we’ll see how that comes up.
Steve Sakwa: Great, thank you.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Alexander Goldfarb from Piper Sandler.
Alexander Goldfarb: Hey, good afternoon. Andrew, congrats, Mazel Tov. I guess this is it for you having to do the earnings call. So, congrats and look forward to where the New York asset columns have your next real estate deals. Two questions here. The first question, Matt, capitalized interest, always sort of the bane of modeling. You guys, you did the One Madison delivery. You’ve got the $577 million. You also closed on 625 Madison, so maybe you could just put some framework about how we should think about interest expense next year, the impact of capitalized interest just given those moving pieces?
Matthew DiLiberto: Yes. Capitalized interest is a tough thing to model even here. It’s a complicated exercise, particularly when you have joint venture interests in multiple development — redevelopment projects, but specific to your question, something like the proceeds at One Madison, which is a fully capitalized property because it’s in full development, when you get $577 million in, that reduces our investment in the asset by $577 million, and therefore, you can’t capitalize interest on that $577 million, use whatever interest rate you want. It’s based on our consolidated weighted average interest rate, so call that 4.5%, 4.5% times 577 is a big number that’s lower capitalized interest. Other assets like 625 or anything else for that matter that gets leased up as leasing comes on, capitalized interest goes down.
So there’s an offset to NOI coming on from interest capitalization. So yes, there will be some significant changes as you roll through 2024 and into maybe even 2025 as One Madison comes online NOI benefit, capitalized interest reduction and so I’m optimistic that people will start to flow those through their models. I haven’t seen it flow through just yet, but I’m sure as people tune up their forward-looking models that will appear.
Alexander Goldfarb: But it sounds like the big one is obviously the One Madison, that’s helpful. And then 625 just for clarity, because you just brought that on, that would be that would reduce interest because now your — that building is on your books and you’re capitalizing it? Or were you sort of already running it through? I just want to make sure that we — by bringing 625 on that we account for that correctly?
Matthew DiLiberto: We had a leasehold investment previously, right? We wrote it off back in the second quarter prior to it being written off, that would have been capitalized interest against that investment. Now there will be a capitalized — there would be capitalized interest against the new investment. So there will still be capitalized interest, but on a different investment amount.
Alexander Goldfarb: Okay. And then second question is, with Andrew’s departure, Marc, you mentioned bringing up the younger — the bench and having other people step forward. On the Mezz and preferred business that you guys have that you’ve long held Andrew was big into that. But should we take the comments as other people will step into that and you will re-grow this Mezz business once interest rate and transaction markets start to normalize? Or is this sort of a wind down? Does this Andrew’s departure signal a wind down of the mezz business?
