Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from John Guinee – Stifel Nicolaus.
John Guinee – Stifel Nicolaus
Most of these questions are for Steve. One quick question for you, Rand. On the land acquisition did you pay 2007 prices or 2010?
Randall M. Griffin
Probably in each case we did get a reduction from what was originally discussed, fairly significant reduction in the case of property up by Fort Detrick so it’s unusual to buy ground but we have the demand there and I think we took advantage of some of the weakness in the potential market by getting the price reduced.
John Guinee – Stifel Nicolaus
Okay, thanks. Steve, net service income $0.08 to $0.10 projected for 2009, what will it be in 2008 and what specifically is going on in the construction service line item for the financial statements?
Stephen E. Riffee
Well, it’s about $4 million for 2008 is what we’re projecting so we have a big contract for one of our primary tenants, a couple of them that are going on and really ramping up this quarter and that’s, the fees are a small percentage of the total spent of the construction spend so that’s what you’re seeing. There was, as we footnoted in the supplement, there was one small contract that we had a very tiny net fee that we would grow stuff the first and second quarter by like $1 million in one and $7 in the other but the fee had been recorded net and now that we have the contract grossed up we see that, that’s what you’re seeing in the third quarter, a lot of activity in the third quarter and it’s that kind of business, John that is representing the money for next year throughout the year.
John Guinee – Stifel Nicolaus
Okay, then last question for Steve or Rand, what’s the pricing now on your deal to put on your $200 million of exchangeable notes or preferred shares outstanding and are you in the market to buyback any of that paper?
Stephen E. Riffee
John, we’re looking at it, the actual economic advantage to it is actually very small. We do analyze it; we think about it, we’ve also been making sure we preserve the capital for everything that Rand and Roger talked about. We look at it regularly, we would consider it, but the economic deterrence is really not that big at this point in time, but we are relative to the cost of our capital. It’s roughly $0.71 on the dollar today, John.
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