DEA
#<UNK>, as we continue to grow the business and increase the scale of the business, I think you're going to see a modest increase in cash G&A.
Obviously, nothing that outpaces the growth of our top line.
The level in the third quarter is in line ---+ excuse me, in the second quarter is in line with our guidance for the year.
Sure.
I will say, to begin with, we were quite gratified to win the FDA Alameda.
By the way, it's the only development that would fit within our bullseye since we went public ---+ the only one.
It took well over a year in discussions.
Obviously, with Mike Ibe, who runs our development and acquisition team, who has developed over 25 of these properties, we were confident that we were going to come up with a good bid and work well with the federal government.
When it comes to pipeline, obviously we do have a number of lines in the water at all times and are entertaining buildings that would fit within that very targeted area that works for us.
Consider ---+ basically, we are building, in this case, to a 20-year firm term lease with 100% occupancy on this property.
It's very difficult for us to forecast projects, as the government needs and timing are not necessarily congruent with quarterly earnings.
But you can certainly assume that the Easterly team over the next four to five years are going to be doing some terrific development projects that I think will be quite accretive to our earnings going forward
I don't think Mike's momentum has slowed, knowing Mike Ibe pretty well.
I'd say the federal government's appetite for new buildings certainly was curtailed with that little incident that occurred between 2008 and 2010, with the massive slowdown.
But I will say that the federal government has its needs; buildings are getting older obviously.
Obviously, our buildings are very young in our overall portfolio.
But there are important facilities, certainly laboratories, and I'd also mentioned FBIs and so forth, where the government continues to invest in their important mission-critical infrastructure.
So, I think we will begin to start seeing some more development projects going forward.
Obviously, we are seeing a lot of really terrific products in the VA area, as that's an agency that understands the importance of our servicemen and women over the decades to come.
So we are seeing some development there.
But you can be assured that we are concentrating on anything that would fit within our bullseye.
We do believe that we're going to start seeing some more projects certainly in the next two to three years.
Thank you.
<UNK>, I'd say that, once again, to mention, 85% of our purchases were off-market.
So if there were obviously conversations with people on buildings and maybe there was a couple that we did not close because obviously we are price-sensitive.
We said to The Street that we want to purchase buildings between 6.75% and 7.25%, I am pleased to say we have done that.
From a standpoint of marketed deals, we did win the FBI Richmond.
I think that was ---+ we were very gratified to get that.
There were some other properties that were larger that we felt that we did participate in from a marketed standpoint and did not purchase them because we're very disciplined on what we're going to pay for the properties.
I think as we look at the properties, we can certainly continue doing what we have told The Street and indicated for the foreseeable future in the range that we're talking about.
Obviously, there will be opportunities as we go forward for buildings that are perhaps 20-year leases, 15-year leases, that might be at the lower end of that range.
Obviously, if the cost of capital is appropriate, we will consider them.
But from a standpoint of competitive, that's what our team does all day long is going and meeting with the owners ---+ I think we have a terrific relationship with them.
We like to get there certainly ahead of others.
We do not see any new competitors from where we started.
We have been doing this for about five years now, the same usual folks.
We are very gratified to be in that middle zone, where we are not competing against the largest REITs and again, not competing against the lower end, the doctors and dentists indicators.
