PSB
#Well Tony, this park is a unique location in Tysons.
In that, it already as right adjacent to it parks that we're building, jogging trails are in place, a natural stream, as well as being only a block away from the athletic fields.
So the new developments don't have that sort of accessibility for people that want an active lifestyle.
And we own a contiguous 45-acre accumulation of what is relatively flat and allows us to build these mid-rise apartment complexes versus the high rise requirement for those properties that are directly adjacent to the metro, they're very close to the metro.
And so at this point, as we're developing and as the neighborhood is evolving, we'd like to keep control of the land at this point.
Now, what we would do in the future two or three years from now, I don't want to speculate at this point.
Yes, Tony.
The sequential decline in G&A was largely tied to the management change that was effective July 1.
So that's the primary driver.
If you look at kind of the composition of the G&A for the quarter, there is really two components.
The non-cash relative component that we isolate is about $900,000 and the balance is kind of the cash G&A.
So that puts it somewhere in the $2.6 million all in range.
I think going forward, that's probably a good fair run rate.
Well, I think you know from our history, we've been very judicious about using equity as a currency and I think we would continue to do that.
That would be something ---+ from our perspective, that would be probably more effective use as we were expanding the portfolio through acquisitions.
The other thing that you have to consider if we were to issue some level of unsecured term debt, we're generating $45 million to $55 million of free cash a year.
So we've got significant cash flow that we can use to pay down that debt as well, if the acquisition market doesn't change here in the near future.
I think there may be a point where it would make sense, but I think just from a long-term standpoint and a dilution standpoint, it certainly would make more sense to us to use that currency for growth purposes versus refinancing purposes.
We've certainly gotten some indications of pricing.
I think that if we were to do something that was floating rate, we'd probably be in the range of plus or minus 100 basis points over LIBOR.
So it's pretty attractive pricing.
No one-time expense.
The one thing that you should know and if you look in our supplemental package, we have a graph that shows kind of the trend of the margins, and you see that typically our third quarter margin is a little bit lower and that's largely driven by utility costs.
So we typically see and anticipate a higher spike in utility costs over the summer months just based on that usage within the portfolio.
So that was the large driver of kind of the impact on NOI.
You're correct, <UNK>.
That is how we would expect to bring it in.
And that will start coming in really early in the second half of 2017 with leased up beginning in the springtime.
Yes, probably more towards the end.
This is a big project, almost 400 units.
And there are competitive products still coming to that market.
So you're looking at more of a two-year leased up phase.
Tony, just to clarify or to expand on <UNK>'s point, the construction of the entire 395-unit building will not be complete in the springtime, but the first phase of it will.
So that construction will continue through close to the end of 2017.
Thank you.
Thank you everyone for your time today and we look forward to talking to you in the near future.
Take care, bye now.
