Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of David Loeb – Robert W. Baird
David Loeb – Robert W. Baird
Jim if I heard you right, I think you said that you and your partners would be keenly interested in acquiring the Lehman ownership stake in the Austin portfolio, can you just elaborate on what your interest is, how that might be structured, how the pricing would compare to the initial acquisition price and how you would finance that?
Jim Thomas
I really can’t, I also indicated that our Lehman partner has indicated that they are prepared to meet all of their obligations under the partnership and so as long as they do that obviously there won’t be an opportunity for us to acquire an interest. Some Lehman interest entities have been placed in bankruptcy and so we’re watching the situation very carefully. As I say, if an interest did become available we would be interested in pursing it.
With respect how we might acquire an interest, our partners would likely pursue it on a pro rata basis but up until something becomes available we can only watch the situation carefully and we’re being very proactive.
David Loeb – Robert W. Baird
Is that entity a wholly owned subsidiary of a bankrupt entity? Is that an asset that the bankruptcy court is going to be looking to in order to raise funds for other creditors?
Jim Thomas
I think its down the chain several levels and I’m not a bankruptcy expert but I assume from our conversations with attorneys that the bankruptcy court would have some say in what would occur at that level.
David Loeb – Robert W. Baird
So we should just stay tuned and see how that plays out.
Jim Thomas
Correct.
David Loeb – Robert W. Baird
On the Murano if I’m counting right, it sounds like you increased the number of sold or under contract by two in the third quarter, one more in October and I doing that right and is that about the pace that its been, one a month or a couple a quarter?
Jim Thomas
Well you’re doing it about right. We have had over the course of the selling period, we have had six units that the buyers did not perform and forfeited their deposits so in terms of total sales, you have to add the six to the 126 that I talked about so in a sense we’ve sold 132 units.
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