BXP
#So it's a very fair question, <UNK>.
I think that if we go around our portfolio and look at the amount of repositioning we have already done, the vast majority has been completed.
There are a few 300,000 plus square foot buildings in Washington DC.
One of them is undergoing a renovation right now and the other one will likely start in 2019 or 2020.
That's the building over on New Hampshire Avenue, right.
Yes.
And then there's a suburban office building in Boston that we actually are about to undergo a renovation on, but we actually have a signed lease for that building and that tenant would like to be ---+ sorry, not a signed lease, a signed letter of intent ---+ and that tenant would like to be in that space in the third quarter of 2017, so that one is going to happen really fast.
Our CBD portfolio by and large in New York City, and in Boston and in Washington DC, aside from that one building I just described, have really gone through a pretty significant restoration and refurbishment.
And then we are going to be doing some work at Embarcadero Center probably over the next two or three years to really upgrade and improve the experiences there, but not in anticipation of any lease expirations, just in the form of making sure we are maintaining our competitiveness with the marketplace.
We are looking at opportunities in the District, in Northern Virginia and in suburban Maryland and certainly as we have described, pre-leasing is critical for us to launch projects and even more critical if we are going to do it in the suburbs.
If we have a development that is fully or materially pre-leased at an attractive yield, it's something we are certainly going to launch.
Oh, yes.
<UNK>, just to give you perspective.
Three of the things we are looking at in DC are 100% leased and one of them there will likely be a lease of at least 60% or 70%.
We have not changed our pricing from the deals that we were doing a year ago, so we have not raised our pricing, but we haven't lowered our pricing and the tenants are very similar.
They are in what I guess <UNK> refers to as small financial firms, private equity firms, alternative asset management firms, consultants to the asset management business, some, quote/unquote, I guess hedge funds (multiple speakers).
We call them very attractive tenants.
<UNK>, I think the only difference might be that we thought we might have to have pre-built some of the space and try to attract 5,000 to 10,000 square foot users and as <UNK> described, what we are really talking to is 20,000 to 40,000 square foot users.
So that's a half a floor to a full floor, so that's not really doing the pre-built activity.
But we will end up doing some pre-building on those floors to fill out the space.
So you are never going to hear us describing what the rent is or what the sales are for any of our tenants on a particular basis because I just don't think that's appropriate.
So the number I gave you was a revenue base for all of the retail at the building, which includes a multitude of tenants, even some banks, but they don't give us percentage rent.
(multiple speakers).
And I guess my point is is that we are well off what the peak sales were in terms of our expectations for the percentage rent and we haven't assumed any growth.
So we said let's look at what the least exciting sales might be and use that as our baseline and everything that we get on top of that will be gravy.
I'm not going to give you a number because you've got to understand the sales for these properties are different than they are for anything else that you would probably see in a retail portfolio.
<UNK>, would you like to describe that one.
It's had zero impact on leasing and we are not worried about the building falling over.
That's the short answer.
I think they pressure grout and stop the building from sinking.
I think it's going to continue to sink until they come up with a solution.
<UNK>, well, we have taken advantage of the sale market this cycle.
We did several billion dollars worth of asset sales and joint ventures over the last several years and made significant special dividends to shareholders.
We also ---+ a lot of those decisions also were driven by the need we had for capital to fund our development pipeline, in which we've been employing.
We will certainly consider selling additional assets in the future if we need the capital for a new investment that we make or for additional development.
But what we are not doing is just selling assets when we don't have a need for capital.
As you know, our debt is lower than where it has traditionally been and we have still substantial capital to invest in our current development pipeline.
Okay.
That concludes all the questions and our remarks.
Thank you for your attention.
That concludes the call.
