REG
#I can speak to that.
This is <UNK>.
We are not and I think that's in large part because of our centers.
We have great, well-located centers.
They are with great grocers.
They are necessity-based retail in large part.
So part of what makes San Francisco unique is the tremendous high barriers to entry.
There has not been over building in this last cycle or really in past cycles up to now.
It's a very supply constrained and our centers are performing really quite well.
And we're not nervous about that market.
It's one of our best portfolios.
This is <UNK>.
It's pretty simple in this case.
We actually had signed a lease with a nail salon and prior to us delivering the space to them, they ran into some troubles on some other locations and they basically backed out of the lease.
And we have backups we're already talking to, so that's the simple reason it has to do one tenant.
Talk about the Whole Foods opening and where we are from leasing standpoint even though the center is just being completed.
Yes.
Whole Foods opened last month and they are doing tremendous.
Well above their projections.
If you get a chance the center is at North Orange County.
It's one of our best developed, best looking assets and that's merchandise assets.
We're 90% leased.
We could at least it really two or three times over.
We've turned away a lot of tenants.
We've been very patient.
We've held out on a couple of our the best spaces and we really see no issue with getting those last spaces leased up.
It's really one of our gems.
And if you're in Southern California, please take a chance and stop by.
Yes, we've already talked about this.
I'll let <UNK> talk about the real estate.
In general I would not expect to see a lot of upside but at the end of the day we're comfortable with the real estate and feel like there will be good demand for our retail backfill.
And as we said in our prepared remarks, which you may have missed, that to replace a struggling operator with a better operator is going to be better for the long-term growth of that center.
Thank you.
We have a retail component ---+ there's also an entire bank of building which has upside as well.
I don't know, <UNK>, if you have had an opportunity to actually visit the center, it's across the street ---+
No.
That's what we're buying.
So there's different parts ---+ Whole Foods is across the street too.
There's different parcels within the center.
The main retail component is anchored by Barnes & Noble.
And I'll reiterate what I said in the prepared remarks, that would be a fantastic example of where bad news would be great news.
We love to get that space back.
The center was built a little over 10 years ago.
We would expect that we're going to start to really realize some of that growth ---+ it will certainly increase over the next 12 months but I think you're going to see the bigger step probably in 2018, is when we are really going to start to see the growth in the NOI.
We are really early in the process so there are many different alternatives.
So, it's just a little too early to share much detail but it could potentially be retail and perhaps multifamily on top.
It could be all retail.
There could be the potential of moving some of the tenants to that ---+ the other existing tenants to that location, but again, it's way too early.
And we could lease it to one user.
Thank you very much.
Lots of vacant building, <UNK>, and that what we ---+ so we really are evaluating the different alternatives as to what we may do with that parcel.
And no decisions have been made.
No matter what we do there will be significant upsides, obviously, from what is today.
Because it's zero today.
<UNK>, It's not ---+ I think the way we've seen it written about and talked about as a joint venture and although technically we will close as a JV, the idea is to condominium-ize immediately.
So we will have ---+ so, hold on, I just want to get the structure out of the way.
So we will have physical ownership and legal ownership of only our component.
We've can't, at this point in time, unfortunately, talk about purchase price details and the diversification of that between the multifamily and the retail but are looking forward to doing that upon closing and you will see a press release at that point in time.
We get all the economic benefits.
We will get all the economic benefits from the retail.
Avalon Bay will get all the economic benefits from the multifamily and we expect to have the thing totally broken out before the end of the year.
I'll reiterate what <UNK> said.
As you know, typically we're not ---+ we don't hold things this close to the vest.
The sellers are really sensitive about releasing the purchase price prior to closing so as soon as that happens, more than happy to share that information publicly.
That's 100%.
We look at that as <UNK> said, we look at that as a vacant building with a significant amount of redevelopment upside.
Correct.
We appreciate your time and wish that you have a ---+ wish you a great rest of the week and a terrific weekend.
Thank you very much for your interest in Regency.
