Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Mark Biffert - Oppenheimer.
Ian Zaffino – Oppenheimer
This is Ian Zaffino with Mark Biffert. Just a couple of questions about the asset sales and lease renewals, on the Tech 100 dispositions, can you give us an idea what actually cap rate was?
Bill Camp
Sure, I can do that. On the trailing 12 months, it was an 8.5% cap rate, but one of the factors on that property is we had a number for tenants there that were somewhat difficult in terms of rental rate paying and we knew one of those tenants were leaving. So if you took into account on a forward-looking basis that we were probably going to lose one of those tenants, it was probably closer with 6%. So if you’re looking forward it was the 6% cap, if you’re looking backward, it’s an 8.5%.
Ian Zaffino – Oppenheimer
What would say accounted for the occupancy growth in your core multifamily and office sectors? What are you noting in terms of traffic, this being driven by the decline of rents in your submarkets?
Skip McKenzie
You asked on a core basis, is that correct?
Ian Zaffino – Oppenheimer
Yes.
Skip McKenzie
One of the large reasons on a core basis is seasonality. I mean you’re in the leasing season. It’s a big difference leasing in the second quarter as opposed to the first quarter generally.
I would say that we were in fact a little more aggressive on our rental rates, but as you could see in the numbers that Bill discussed or Mike, we did report year-over-year rental rate increases, but I would say it’s a combination of two things; we’re a little aggressive in getting occupancy, and also the seasonality effect.
Ian Zaffino – Oppenheimer
What are your expectations for additional asset sales excluding or I guess have you have marked any for sale so far?
Skip McKenzie
Well, I think we reported that we gave an estimate for $50 million to $70 million. It was our sort of goal for this year, we reported earlier. In this environment it’s tough to give you a definitive answer. I do think that we’re on target to be on the lower end of that estimate.
Having said that, if a couple of things brake the right way we could blow through it, but I think that we feel pretty good about being on the lower end of that estimate for this year. Having said that, as you know, with the two assets we’re at 30 right now, around numbers, completed.
- To read the full transcript on Seeking Alpha, click here »
