Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from Jeff Donnelly at Wachovia.
Jeff Donnelly – Wachovia
Good afternoon guys. A first questions and I will try not to dominate your call. The first question actually is for Scott. I was curious, in situations where you are seeing retailers ad space to the mix, has there been a change in the way that they are underwriting new locations? Are they seeking out even only the most proven sites? And I guess beyond that, any change in what they are looking for in the leasing front beyond the financial terms, like operating covenants or waivers of those I should say, co-tenancy, subletting, et cetera?
Scott Carr
Yes, it's definitely a flight to quality in that they are going after those locations that are premium and there's no doubt that they have a little more negotiating leverage today. The healthy attractive retailers that we're dealing with, they're driving firm deals. We're always pretty principled in what we do with regard to operating covenants. There are certain things that are critical we think to the viability of the center and we fight pretty hard when we're talking about things that could kick out in operating covenants and the main thrust for us is always to maintain as much control as we can. So, where we do have to give a kick out, we always to recoup on the unamortized costs and then likewise if they have the ability to go dark, we are very adamant on getting recapture rights, so that we can control the health of the space, the health of the center overall.
Jeff Donnelly – Wachovia
I'm sorry, my fingers weren't fast enough earlier – but beyond the Nordstrom Rack, what was the update again, I'm sorry, on releasing the Wickes spaces?
Scott Carr
Up in the Twin Cities area, in Coon Rapids, we leased the former Wickes to the Sports Authority and added 7000 square feet for them and then Nordstrom Rack, the one in Norland Park. The three remaining ones, we have a lease in negotiation with a prospect and we have LOIs on the remaining two.
Jeff Donnelly – Wachovia
That's great. If I could just switch over, I am not sure who to best direct it to, but on the IREX joint venture, I just had a few questions. Are you guys seeing I guess resale spreads widen or narrow between where you guys are buying and subsequently selling IREX assets?
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