Question-and-Answer Session
Operator
Thank you. We'll now be conducting question-and-answer session (Operator Instruction). Our first question comes from Christine Mcelroy with Banc of America.
Christine McElroy - Banc of America
Hi, good morning. In the past you guys have talked about the portfolio is being in different buckets, some of which are good assets, some of which either need to be proven or need work. Can you give us a sense, as you look at portfolio today? What's your strategy for non-core assets sales?
Chris Marr
Hi. Christy, it's Chris. As we come to the close here in this year we are also bringing to a close a process that we've been working through for the last several months and looking at all of the assets in the portfolio and developing a ranking with your best asset all the way down to the assets that falls through to the bottom of the list.
It's a process that we did at storage USA and it was repeated. Thereafter, the company was sold and we basically replicated that process here. And it gives us a fabulous amount of data on each asset and allows us to eventually look at things from really a hold IRR type approach to say, if an asset may in fact to be well occupied, but is in a lower rent part of the country, and the upside to that asset is fairly muted to perform an analysis to say we better off on all things relative, taking in to account cap rates in those markets etcetera.
Looking to exit that asset and redeployed that capital in to markets that have higher growth potential, even if in the near term, it's at a lower cap rate. That process is drawn to close, out of that will come a disposition effort, which will begin later this year, or at the beginning of next year.
And we do anticipate having as a source of capital in 2008, proceeds from the sales of those assets that don't fit long-term into the growth strategy of the portfolio.
Christine McElroy - Banc of America
And then, what about assets that are in a non-great shape, but on really good real estate, is there any redevelopment in our expansion potential within your portfolio? And you -- would you ever consider bringing -- potentially bringing in a partner to help provide investment capital?
Chris Marr
Well, Christy, I'll let Chris to speak to the capital part out. As far as the assay is concerned, I mean we certainly have ongoing programs as it relates to income producing capital expenditure programs, where we are converting some stage decline withdrawal. We've had an addition going and we will have some, I'd recall, an early model product, maybe one that's build in the 80s who have a situation where we will redo the office completely. Maybe chop-up the officer and build a new storey building. So, those are going to speak the capital and I'll be surprise when you look partner for that.
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