Question-and-Answer Session
Operator
Thank you. (Operator instructions) Our first question comes from Michelle Ko, Bank of America-Merrill Lynch.
Michelle Ko – Bank of America-Merrill Lynch
Hi, good morning. I was wondering if you could talk a little bit about your acquisition plans for next year. You are saying that you are going to buy as many assets as you are selling. I was wondering if you could assess a rough range in dollar terms. And then also, are there particular markets where you want to gain exposure?
Terry Considine
Michelle, this is Terry Considine. I think that’s an excellent question and one that we will address it with particularity when we give guidance on our first call. In general, we would look to sell, perhaps -- or to buy, rather, perhaps 5% to 10% of our existing plus $7 billion capitalization and to fund it with sales of lower rated properties of 5% to 10% of our existing capitalization.
Michelle Ko – Bank of America-Merrill Lynch
Okay, great. And if I could ask one follow-up question, I was just wondering if you could talk about the IRRs you expect on acquisitions.
Terry Considine
I think that the IRRs on acquisition today are probably in the low-double digits on a levered basis. Probably 8% or 9% on an unlevered IRR and 12% or so on a levered basis. I think they will be funded by sale of assets with comparable IRRs. So we see that the recycling of capital will be more to upgrade our portfolio and to bring it into compliance our asset allocation policies rather than to see significant increases in IRRs.
Michelle Ko – Bank of America-Merrill Lynch
Okay, great. Thank you.
Operator
Thank you. Our next question comes from Michael Levy of Macquarie. Please go ahead.
Michael Levy – Macquarie
Thank you. Just want to get some clarity on the pipeline and the planned sales for the rest of the year. Would it be correct to assume that once the $450 million in planned sales go through the net proceeds of these sales and the cash on the balance sheet will be sufficient to repay the term loan?
Terry Considine
Yes, that’s the case. That’s why we set the marker out there at $1.3 billion for the year. We clearly could sell more given the size of the pipeline. But as of today, we don’t have any use for the proceeds. So as we identify acquisitions going into next year, we would expect to continue to be a seller of the assets we previously identified using the proceeds to fund those acquisitions.
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