Sydney McEntee

Sydney McEntee from Citigroup Inc. asked for an update on backfilling the remaining Party City and Joann boxes, including the nature of tenant interest.

Answer

EVP & COO David Jamieson reported strong single-tenant interest, with over 90% of spaces for both retailers now 'resolved' (signed, assigned, or in late-stage LOI). He highlighted signing three Joann boxes with TJX in under ten days as proof of strong demand and relationships.

Sydney McEntee, on for Craig Mailman, inquired about the mark-to-market opportunities for the recent North Sixth Street acquisitions in Williamsburg and asked about changes in the transaction market for street retail assets.

Answer

EVP & CIO Reginald Livingston and SVP of Leasing & Development Alexander Levine responded. Levine noted that mark-to-market opportunities are 20%+ in many streets, including Williamsburg. Livingston added that while institutional investor interest in retail is strong, street retail is a 'less crowded trade,' and more sellers are returning to the market.

Sydney McEntee, on for Seth Bergey, asked about plans for the remaining acreage at Santa Fe Summit, the strategy for monetizing land versus operating assets, and whether tenants are still reducing their footprint upon renewal.

Answer

EVP and CIO Eliott Trencher explained that land sales are focused on parcels with a higher and better use outside of office/life science, but this doesn't preclude sales of operating properties where valuations are attractive. EVP and Chief Leasing Officer Rob Paratte added that on renewals, most companies are now retaining their existing footprint, a positive shift from 18 months ago.