Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from David Toti – Citigroup.
David Toti – Citigroup
Just a quick question on dispositions, are you seeing any change in buyer demand? I’m just sort of wondering why you’re not being a little bit more aggressive with the disposition agenda this year. Is it more to do with your own strategy internally or demand environment?
Edward J. Pettinella
A couple of points David, our first is we have $110 laid in this year, $68 or $69 million has been done. As I mentioned in my text, two more are going to be done here in the next few months, that’s all we had projected to sell number one. Number two, this is not exactly an opportune market to sell a lot of properties. The ability for stabilized cap rates in any of our markets that we could sell is not there. Three, we’ve done a lot of our heavy lifting, the regions or half region which was most recently done in Hudson Valley has now been completed.
About $600 million was done in the last three of our years. We like our geographic footprint and quite frankly there’s not much we would want to give up at this particular point. So, there’s not a big demand for us to sell and we don’t think the market is conducive to selling a lot more at this point.
David Toti – Citigroup
The flip side to that question is are there any markets where you think you could see some opportunity to expand in to?
Edward J. Pettinella
Not really. Every couple of years we bring in Ron and really go through our strategic planning in terms of where we could add incremental cities. First I’d tell you, we don’t see many opportunities based on our acquisition model to buy anywhere, even in our core markets. So, my guess is we’re going to be out of all markets for some time to come but when we do get back in to our core markets, the fact that we only have less than 1% to maybe 3% in Philly, the propensity to grow is still there. We’re not a dominate player in any one market. So, when the market place gives us some deals to really look at we’re looking at a 8.5 unlevered IRR at this point and we just don’t see many deals that even get close to penciling out.
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