This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.
spk01: This is a recording for John Baker with Florida Rock Properties, Inc., on Tuesday, August 3, 2021, at 10 a.m. Central Time, 11 a.m. Eastern Time. Excuse me, everyone. We now have John Baker, Executive Chairman of FRP Holdings, Inc., in conference. Please be aware that each of your lines is in a listen-only mode. At the conclusion of Mr. Baker's presentation, we will open the floor for questions. At that time, instructions will be given as the procedure to follow if you'd like to ask a question. I would now like to turn the conference over to John Baker. Sir, you may begin.
spk03: Good morning. Thanks for joining us today. I'm John Baker II, Chairman and CEO of FRP Holdings, Inc. With me today on this call are David DeVilliers, Jr., President of the company, David DeVilliers III, Executive Vice President, John Baker III, CFO, John Milton, our General Counsel, and John Klopfenstein, our Chief Accounting Officer. Before we begin, let me remind you that this presentation may contain forward-looking statements. Such statements reflect management's current views with respect to financial results related to future events and are based on assumptions and expectations that may not be realized and are inherently subject to risk and uncertainties. many of which cannot be predicted with accuracy and some of which might not be anticipated. Future events and actual results, financial or otherwise, may differ perhaps materially from the results discussed in such forward-looking statements. Risk factors are discussed in our SEC filings in annual quarterly and quarterly results. These forward-looking statements are made as of this date and based on management's current expectations. The company does not undertake an obligation to update such statements other than as imposed by law, and investors are cautioned not to place undue reliance on such forward-looking statements. The second quarter saw revenues and NOI grow 45% and 37%, respectively, versus the same quarter last year. Royalty revenues were the highest in our history and the likelihood of passage of a federal infrastructure bill gives us an expectation that the royalty earnings will continue their secular growth. Net income for the quarter was $82,000 or one cent per share versus $4,149,000 or 43 cents per share a year ago. Driving this decline was the amortization of the leases in place as a result of last quarter's consolidation of the Marin and its leases in place, which was part of the write-up of that asset. Also contributing to the decline in earnings was the interest on the now consolidated Marin loan and lower gains on the sale of real estate. Let me now turn it over to David Duvalier to walk you through our operating results.
spk06: Thank you, John, and good morning to those on the call today. I'll now offer some detail to the financial highlights provided by John in his opening remarks. Since the 2018-19 dispositions of our warehouse platform, totaling a little over 4 million square feet, We have been actively seeking value-add purchase opportunities, development lands for vertical construction, and new strategic partnerships. Additionally, we have continued to develop and construct speculative projects upon our land inventory when available and through. In early 2019, we added an asset to our asset management business segment through the purchase of the Cranberry Run Business Park in Aberdeen, Maryland. 268,000 square foot multi-building warehouse park that was in dire need of rehabilitation. We completed an extensive renovation of the business park and associated buildings late last year. Due to the nature of the short-term lease program at Cranberry, we have had some turnover. And at the end of June 2021, the park stood at 77.6% leased and 59.7% occupied. versus 71.9% leased and occupied during the same period last year. 34 Lofton, our home office, is 95.1% occupied, and we recently completed a much needed renovation of the first four lobby and common areas. Total revenues for the asset management segment for the quarter were down 17.9%, or $128,000 over the same period last year, to $588,000. mainly as a result of the sale of our 94 000 square foot industrial building at 1801 62nd street in july of 2020. 1801 62nd street was responsible for 163 000 dollars of revenue in q2 of 2020. we realized an operating loss of $160,000, down $218,000 from an operating profit of $58,000 in the same quarter last year, again, primarily due to the sale of 1801 62nd Street. Other assets in this segment remain leased and occupied as in previous periods. The mining and royalties business segment remains strong with revenues of $2,634,000, an increase of $232,000 over Q2 2020. This was the most revenue in any second quarter ever. Operating profit was $2,292,000, which represents a $182,000 increase over the $2,110,000 realized in this period last year. With respect to ongoing and new projects in our development business segment, we have Several really strong highlights. One, at quarter's end, phase one of our joint venture was St. John Properties, consisting of four buildings totaling 72,080 square feet of single-story office and 27,950 square feet of small bay retail space in Baltimore County, Maryland, gained a retail tenant. during the quarter, increasing the percentage amount leased to 48 with occupancy of 46.8%. These asset classes of office and retail have been hit especially hard by the pandemic. Our tenants at Windlass, though, have kept current with their rental payments, and we are encouraged by some increased leasing activity here. After the sale of our 92,000 square foot warehouse at 1801 62nd Street in Baltimore in July of last year, we were encouraged by the velocity of the sub-market and began construction of two speculative shell warehouse buildings totaling 145,700 square feet at our Hollander Business Park near the Port of Baltimore. Like their predecessor, these are state-of-the-art Class A concrete tilt-up buildings with 28-foot and 32-foot clear ceiling heights built with Baltimore City green building standards. We are actively pre-leasing and have pre-leased 39% of one building and are encouraged by the continued activity in the sub-market. We expect to complete and deliver both buildings in the third quarter of 2021. Also in the second quarter of this year, we executed a built-to-suit lease for $101,000. square foot facility at 1941 62nd Street. This is the last building lot in Hollander Business Park. We plan to commence construction on this project in the third quarter of this year and expect to deliver the building to the tenant before the end of calendar year 2022. We continue with the PUD entitlement process, our Hampstead Overlook project, 118-acre development tract in Hampstead, Maryland. The concept plan approved at the end of last year calls for 164 single and 91 townhome units. We are currently seeking preliminary plan approval from the local agencies at the next step in the development process. We are optimistic that 2021 will be the year of substantial progress towards this goal. As an update to our lending venture investments program, Hyde Park in Baltimore County, Maryland is now complete. All principal and accrued interest has been repaid and preferred interest and shared profits totaling $1.03 million have been received. Another lending venture called Amber Ridge is located in Prince George's County, Maryland. Our total commitment for this project is $18.5 million. As with our Hyde Park venture, The investment includes a charged 10% interest rate and a minimum preferred return of 20%, above which a profit-induced waterfall determines the final split of proceeds. Entitlements are complete, land development is fully underway, and two national homebuilders are under contract to purchase all 187 lots after completion of the infrastructure development. The first set of finished lots are scheduled to be delivered to the purchasers in the third quarter this year. On the joint venture front, at the end of 2018, we entered into our third joint venture with MRP to develop the first phase of a mixed-use residential and retail development project adjacent to the Red Line Metro Station in northeast Washington, D.C., known as Bryan Street. As a transit-oriented development, immediate access to public transportation options is a critical feature to the design and marketing of this project. The first building, named COTA, was placed in service on January 1st of this year and received final certificates of occupancy on April 1st, 2021, for all 154 of its apartments. Thanks to Herculean efforts from our leasing team, COTA was 88.3% leased and 67.5% occupied at the end of the second quarter. Of note, as of August 1st, COTA was 93.5% leased and 85.7% occupied. With the leasing success of COTA, despite COVID challenges, we are optimistic about the leasing velocity for the neighboring two buildings at Bryan Street called Chase. These two buildings are scheduled to be open and ready to receive tenants in mid-August. In total, Phase 1 at Bryan Street will consist of 487 apartments and three buildings and 89,196 square feet of first floor, freestanding, and open-air retail. 68,691 square feet, or 77% of the retail, is now pre-leased. and expected to open for operations by year-end. This property is located in a designated opportunity zone, which allows us to defer a significant tax liability. In December of 2019, the company entered into its fourth joint venture with MRP for the development of a mixed-use project at 1800 Half Street. in southwest Washington, D.C., in the Buzzard Point area, just a few blocks downriver from Marin and Dock 79. In August of 2020, we began construction. The project, now known as The Verge, lies directly between our two acres on the Anacostia River, currently under lease to Vulcan Materials, and Audi Field, the home stadium of the D.C. United Soccer Franchise. This 10-story structure will have 344 apartments and 11,246 square feet of ground floor retail and is scheduled for completion in the summer of 2022. At quarter's end, The Verge was 27% complete. This project is also located in an Opportunity Zone. Also in December of 2019, we entered into two joint venture agreements with Woodfield Development to invest in two distinct projects in Greenville, South Carolina. Woodfield has vast experience developing residential and mixed-use projects throughout the Southeast and Washington, D.C. The first JV, called Riverside, is a 200-unit, three-building apartment project. Construction began in the first quarter of 2020 and is on the doorstep of completion. Pre-leasing efforts began the last week of July. The second JV with Woodfield is a 227-unit multifamily development entitled .408 Jackson, a nod to shoeless Joe Jackson and adjacent to Greenville's minor league baseball stadium. This project will also include 4,700 square feet of retail space. Construction began in May of 2020 and should be complete in the summer of 2022. Currently, this project is 54% complete. Riverside and .408 Jackson represent a $15.9 million investment from FRP. We're at 40% ownership interest in these two South Carolina projects, which are both Opportunity Zone investments. The structure of these investments will ultimately allow us to defer a total of $4.3 million in federal taxes. Relative to our industrial development platform, late last year we completed the purchase of a 55-acre tract of land in Aberdeen, Maryland, adjacent to the Cranberry Run Business Center. Purchase price for this property was $10.5 million. This project will be known as Cranberry Run Business Center Phase 2 and can support up to 675,000 square feet of warehouse product in a robust distribution market. This purchase expands our industrial land holdings to allow us to continue the industrial development program beyond the nearly complete Hollander Business Park in Baltimore City. We are currently petitioning for annexation to bring all partners parcels that make up the assemblage into the same municipal boundaries. This process will take the rest of this year, and we have begun the design process in the interim. Existing land leases for the storage of trailers on site will help to offset our carrying entitlement costs. Average monthly revenue from land leases for the second quarter were in excess of $42,000. We are hopeful we can begin vertical construction here in early 2023. Moving on to our stabilized joint ventures business segment, in July of 2019, we completed a partial 1031 like-kind exchange by investing $6 million for 26.6% beneficial interest in a Delaware statutory trust for DST that owns a 294-unit garden-style apartment community known as Hickory Creek, located in Henrico County, Virginia. The complex was constructed in 1984 and substantially renovated in 2016. The business plan calls for further rehabilitation departments, generating value-added rents prior to selling the project after an appropriate hold period. We continue to receive monthly distributions from operations at Hickory Creek. Q2-21 distributions were $87,000, equal to 5.5% per annum on our investment. Occupancies averaged above 95% for this project. In March of this year, Phase 2 of our riverfront on the Anacostia project in Washington, D.C., known as Marin, reached stabilization or 90% occupancy of its 264 apartment units and as a result of this milestone, joins Dock 79 and Hickory Creek in our stabilized joint ventures business segment. At quarters end, 94.7% of the apartments were leased and 93.9% were occupied. Relative to the 6,900 square feet of first floor retail, 100% of the space is leased, with occupancies currently scheduled for the third and fourth quarters of this year. As with DOC 79, this is a joint venture with Mid-Atlantic Realty Partners, or MRP, which FRP is the majority partner. Of particular note, this building received its final certificate of occupancy at the end of March 2020 and reached stabilization of 90% in less than 12 months. This is a testament to the quality of location and product delivered to the market and the skill of leadership on the ground managing the day-to-day operations. As a result of the quick stabilization of this project and certain contractual obligations to our joint venture development partner, FRP's ownership interest in Marin is now 70.41% down from 80% prior to stabilization. Relative to DOC 79, its 305 apartments were 95.2% occupied on average year-to-date and were 94.1% leased and 96.4% occupied at quarter's end, marking the third quarter in a row with occupancy levels above 94%. Our retention rate at DOC was 61.4%, down slightly from 62.3% last year. Rental rates, however, were flat due to continued government-imposed restrictions on rent increases due to COVID. These restrictions are currently scheduled to expire at the end of the year. Dock 79 has fared quite well over the past year despite the significant interruptions we all experienced. Though seriously impacted by COVID, With shutdowns, reduced capacity, canceled stadium events, and general uncertainty, our three retail tenants at Dock 79, which total approximately 10,500 square feet of the total 14,000 square feet of retail space, seem to be holding their own and have made significant headway towards normalcy. with the loosening of some restrictions, warmer weather, better utilization of their outdoor spaces, and stadium events with spectators. Of particular note, overage rental payments received for the second quarter were $120,000 for the three retail tenants. In early April, the remaining retail space became leased. We look forward to full retail occupancy in late 2021. DOC 79 was our first joint venture with MRP, and MRP is the major partner with 66% ownership position. Revenues for the quarter for both DOC 79 and Marin were $4.8 million, up 96.7% over the same period last year, primarily due to Marin's lease-up. Marin Revenue represents $2.16 million, and DOC 79 claims $2.66 million in revenue, an increase for DOC of $208,000 over the same period last year. NOI for the quarter in this business segment was $3 million, a little over $3 million, up $1.38 million, which is 83.6% over the period last year. Thanks again to the addition of Marin to this business segment and its lasting success. We have touched a few times on the impact COVID has had on FRP. Despite the arrival of the Delta variant, summer is in full swing throughout our portfolio, and life is looking more normal every day. Major League and Minor League, baseball is back, bars and restaurants are open, both inside and out. trucks are moving goods, and tenants are leasing space. These are strong signals for us personally and as a business that new life, new energy, and new opportunities are happening every day. We have been extraordinarily fortunate that our warehouse platform is performing at least as well as it has historically. Construction material needs have kept mining revenues solidly positive. We continue to identify new opportunities despite raucous competition for deals, and the timing for construction delivery of several of our multifamily and mixed-use projects have lent themselves to capitalize on the reemergence of activity. However, we have not been unscathed by the effects of this terrible global disease. And notwithstanding the good news, we do expect to see the continuation of limited retail and office leasing as some business categories remain uncertain amidst the unique regulatory and public health plan. We are cautiously optimistic but also realistic. FRP has adjusted its operations, withstood infected employees and contractors, held the hands of tenants paralyzed by new government regulations preventing opening for their business, and witnessed the terrible results of this global pandemic. Now we have employees back in the office collaborating and interacting on a regular basis, and we are building back toward an FRP that is more recognizable than over the past 16 months. All the while, we remain grateful that as a company and group of professionals, we are solidly grounded and uniquely prepared to progress as an organization loyal to our mission that has served us well both before and during COVID-19. Thank you, and I'll now turn the call back to Jonathan.
spk03: Thank you, David. We will now open it up for questions from the floor.
spk01: At this time, we will open up for questions. If you would like to ask a question, please signal by pressing the star key followed by the 1 key on your touch-tone phone now. Questions will be taken in the order in which they are received. And if at any time you would like to remove yourself from the questioning queue, you may press star 2. And again, to ask a question, that is star 1. Our first question comes from Bill Chen with Rhizome Partners.
spk07: Hi, guys.
spk03: Good morning, Bill.
spk07: Good morning. I didn't realize I was going to go number one. Well, great result as always. I got a few questions, and I think I'll just run through them. On the first quarter filing, it showed that the split between FRP and MRP was $72.38. I think there was some adjustment. Did MRP wind up getting a little more? What was the final split for the Marinette?
spk06: Well, we started, as you know, we started out at 80%, and then as we started to go through the process, We had some early on appraisals through BDO and some of those programs that took us to something that was much less than what ultimately the market value was determined for the building during our negotiations. So we recorded our ownership at 72% for the end of the first quarter. And then we actually went through the process of the appraisals and that sort of thing, and it reduced our ownership a little bit further to the agreed-upon ownership percentage of 70.41% for FRP. And that's what it will be going forward. Got you. So that's 70.4?
spk07: 70.41, yes. Okay. Got you. Yep. Oh, thank you. The – let me see. If I – on Bryan Street, I think the – you referenced that 67% of the retail is pre-lease. And I saw a Bizmail article that gave a pretty good – kind of summary on the progress there. What is, I know Alamo is moving forward with opening that location. I guess what is the key remaining space that needs to be leased for Bryan Street?
spk06: Well, we have several different types, Bill, as you alluded to, of retail there at Bryan Street. We have obviously the Alamo, which is why we have what we call small shop retail, which is your basic inside retail. We also have a food hall concept that totals about 9,400 square feet. And then we have what we call an outside pop-up retail, and that's an area for outside activities and that sort of thing, which is – which is effectively 100% leased and waiting for its final certificate of occupancy. So the area that still needs the most lease-up is probably the small shop retail, because that totals about 23,000 square feet across all four buildings, and we have 9,000 square feet of that pre-lease.
spk07: Yes. And that's 9,000 pre-lease? Okay. Yeah, of that particular type, yeah. Yeah. The MetroCard bar concept looks really cool. That's the outside pop-up. Yep, yep. I'm jealous. You guys get to do some stuff that folks here in New York just don't have the chance to do stuff like that, so that's really cool. The Jumping around, back to DOC 79, you mentioned that the overage payment on the restaurants at DOC 79 is $120,000. How does that compare to 2019, which is a more normal year?
spk06: Well, we didn't have all three of them up and operating fully in 2019, so it's kind of hard to compare the two. But it is at least a couple of the two restaurants that were operating fully. It's back to where they were in 19. Oh, wow. Okay.
spk07: That's fantastic.
spk04: 19 might have been almost unrealistically exceptional given that the Nats went to the World Series, and that obviously helped.
spk07: Yep. Got you. That's helpful color. I actually was down there in October of 19, and I remember being mobbed. Can you update us again on that remaining space, that space that got leased? What's that concept for, and how many square foot is that for?
spk06: Bill, it's about 3,500 square feet. It's right on the Esplanade, and they're under construction there now. It's kind of a little bit of a different concept. It's got kind of a bike theme to it. There will be more, I think, breakfast and lunch served there than certainly the other venues. So we think it works very well with the other venues that are there at Dock and Mariner.
spk07: Thank you. That's helpful. On Riverside and Greenville, everything that I've been hearing about Greenville has kind of exceeded my expectation. I know that you guys have not started leasing yet, but in terms of the go-to-market asking rent, how does that compare to what you guys have previously budgeted for It is just that what – and I asked – I know it's kind of unfair of a question, but everything that I've been reading about Sunbelt multifamily is that rents are up, you know, double digits. So I was just wondering on Riverside if you're seeing kind of similar outlook on rent there.
spk06: Well, it's a little early to tell, Bill. Riverside is basically a three-building program. The first one, we did not do any real pre-leasing there prior to the occupancy. We just felt that that was the better plan for that. and the first building literally opened up last week. So I believe we've had, like, nine or ten pre-leases already, and they seem to be somewhat equivalent to what our budgeted numbers were. But it's all overly set to tell. We'll have a better idea next quarter.
spk07: Got you. Yeah, no, I mean, I know, like, my question is probably a little bit early on, But the excitement on the investment community towards Sunbelt Multifamily has just been off the charts lately. And my last question would be on Bryan Street. I know Coda is kind of a more affordable product, and the leasing on them has been absolutely astonishing. Any thoughts on the remaining assets? I guess they're kind of 15, 20% more expensive on a per-square-foot basis. Kind of deals on kind of demand for the remaining products?
spk06: Well, we just, again, with the success of the quota, we're obviously encouraged about the leasing velocity for these two buildings. Chase, as you know, is two buildings. They total about 150-some units per building. And we did not do any pre-leasing there because of trying to get COTA where it is. And obviously the success of COTA has certainly bolstered our encouragement towards the Chase. But literally, I believe that Friday – we got the certificates of occupancy for the first couple of floors. So again, a little premature on being able to answer that question, Bill, because we're literally three days into Chase. We've got a tremendous amount of activity there, but it's a little early to tell about the rents. Got you. Thank you.
spk07: Thank you for that, caller. And one last question. In the filing, you mentioned that, you know, the rent regulation in D.C., it's going to be February before we could actually increase rent in Dock 79 and the Marin area. You know, finger in the air, it's been, I guess by that point, it would be about two years before we could raise rent in the Marin Dock 79. Finger in the air, what do you think the spread will be once we're able to increase rent? I mean, is it fair to assume something like a 5% rent bump when we're able to increase rent in the Dock 79 in the Marin? Yeah. I'm just kind of thinking two years, 2.5%, 3% a year that we weren't able to push through. Is that a fair assumption?
spk06: That's your assumption. I don't necessarily disagree, but it's a little early to tell. I mean, again, currently the rent freeze is scheduled to expire on in December, the end of December. We do these renewals and so forth and so on out about 60 days. So that takes us into February or possibly March. So it kind of determines, you know, that the timing is important. You know, there's a psychological aspect to leasing spaces in the first quarter versus the second. So it's really kind of hard to tell. It's just too far off for us to really be able to offer that much of an opinion.
spk03: Bill, a little color would be that the average rent in the Marin is $4 a foot, and the average in dock is $3.50. So, you know... I would expect that Doc would move up. And, you know, of course, now Marin's frozen. And so hopefully that'd be at least what you're saying. Got you. Got you. Yep.
spk07: Well, thank you, gentlemen. Those are all my questions. You know, great results. And, you know, look forward to being down there to... to see these assets in person sooner rather than later.
spk03: Thank you.
spk07: Thank you, Bill.
spk06: Love to see you.
spk01: We'll take our next question from Stephen Farrell with Oppenheimer and Close.
spk05: Good morning, everyone. Good morning. Good morning. I just have a quick question with respect to Bryan Street. Will that follow a similar path as the Marin and Doc 79 and that upon stabilization you'll refinance and consolidate or is stabilization of all four buildings when that would happen?
spk04: It will not follow that path, Steven. Because of the Opportunity Zone treatment, we just had a different setup for that than for DOC 79 and in the merit. So it'll stabilize and we'll refinance, but it will not consolidate onto our books because it doesn't have the same control trigger when it hits stabilization. So it'll stay on the joint venture equity accounting. Yeah, equity accounting.
spk05: Okay. And do you expect that to happen for the CODA this quarter?
spk06: It has to be the whole project. The whole project. Yes, sir.
spk05: Okay. Good. That makes sense. Thank you. And in the next year, really the next quarter and two years, we have a lot of development projects in the pipeline that are coming to market. In the next two to three years down the line, what's your outlook on capital allocation? Are you seeing opportunities now to add to the pipeline, or will you begin to shift focus towards developing Phase 3 and 4 of Anacostia?
spk06: I think we have, you know, we look at all aspects of our business the same way. We'll see how Bryan Street goes. We're doing some free development in all of our areas there that we don't, so that if and when the time comes, we're not going through just having to wait to develop to go through the entitlement process. That takes a long time in the District of Columbia.
spk05: Mm-hmm. And are you seeing a lot of the other residential buildings coming to market right now, too, or no?
spk06: I'm sorry, you broke up a little bit, Stephen.
spk05: Sorry, in the D.C. area here, are you seeing a lot of competing residential buildings around Bryan Street and near the Marin?
spk06: Yes, there's other, obviously, developments going on in, on, and around our projects at Marin and Bryan Street. We think we've got some specifically special programs at Bryan Street that a lot of the other developments don't have, not the least of which is a lot of open space and outdoor venue activity that most of the place of the urban developments there do not have. Same thing holds true for Marin and Doc being down on the water.
spk05: Good. We like to think we have a leg up.
spk06: We like to think we have a leg up.
spk05: Yes, me too.
spk03: Stephen, to dig further into your question, you know, We would go to a phase two at Bryant Street if phase one is as successful as we think. And so that's certainly part of our pipeline. You have phases three and four down on the waterfront, and they're certainly part of our pipeline. And, of course, Half Street will be coming on – in the in the meanwhile too so uh we feel like we have got you know a long runway of of projects um that we're that we're excited about you know i can't stress how amazing the the lease up of coda has been i mean this is a project that is transit oriented and the biggest uh amenity was the alamo theater our entrance our ability to access the transit is has been zero and obviously covet has made transit less of an amenity um and we and we'll open up alamo in in december so the fact that we had incredible leasing activity with Without both of those having any attraction whatsoever was very encouraging, and so we're optimistic about the rest of that project.
spk05: Great. Thank you for the additional comment. That's all the questions are.
spk01: And as a reminder to our audience, if you would like to ask a question, please signal by pressing star 1 now. Our next question comes from Curtis Jensen with Robotian Company.
spk02: Hey, Curtis. Good morning. Good morning, fellas. How are you? Great. How are you, Curtis? Good morning, Curtis. I'm doing fine. Just to clarify, on the Marin, there was no retail contribution this quarter, right? Correct. Can you share anything about what you think that will do in terms of NOI, you know, on a run rate basis or something?
spk06: Well, we have a lease with – both leases are complete. I would say that the – The solace, which is the taking of the large space on the water, I believe is about 5,500 square feet, Curtis. And I think they're going to generate about $220,000 plus or minus a year once they get opened up. And then the other one is a smaller area of about 1,500 square feet. And that's a license agreement with one of our outside pop-up vendors that are going to pay us a percentage of revenues. So, you know, it's kind of hard to say, but that's kind of where we are right now. These places really won't be up and running. There'll be some, you know, some free rent, you know, that comes about in 2022. But I think once they get up and running, 250 plus is going to be where you are.
spk02: Okay. And it looks like the Marin did, I guess, for the quarter starting April 1, a million three-eight on an NOI basis. Is that at a 90% occupancy or something like that? Okay. Is that a million ballpark? Am I taking that off? Yes. The press release?
spk06: About right, yeah. I got to remember we were still ramping up. But, yeah, that's – we'd like to think we're going to do a little bit better in three and four.
spk02: Are you guys being held up at all? Maybe it might be more relevant for, like, the chase in terms of, you know, materials, appliances, you know, getting appliances delivered and things like that. Or is any of that eased up?
spk06: Yes. We've had our issues. The Chase, obviously, and COTA more than the Marin. But we lost a couple of months. Not a lot, but we lost a couple of months. We had an excellent contractor, and we did a lot of that early on, and the materials were committed to before COVID hit. But we lost a couple of months, for sure. But the One of the things is that Chase is opening up. We wanted to get it, you know, 100% buttoned up before we opened it up, which we did towards the end of last week. But they're going to open up. They're opening up with all 333 apartments ready to go. Okay.
spk02: And just remind us again, when is the bridge supposed to be – is that – When is that going to be finished or completed? Is that the end of this year, the Frederick Douglass Bridge?
spk06: Yes, it's scheduled to be the fourth quarter of this year, and then the Oval and the existing bridge coming down, all of that's scheduled to happen the first and second quarter of next year. And they're on schedule. So I would say this time, like this time next year, it'll be done.
spk02: All right. And I guess, David, you had mentioned that I think Bizzuto uses the Yieldstar software to kind of, you know, rent a revenue optimization or whatever. And then I guess I was pretty astounded by how quickly the CODA ramped. And I know it's always this tradeoff between heads and beds, as you call it, versus, you know, maybe maximum. I mean... Is there any kind of human judgment, you know, around the yield star thing? Every day. Every day. Yeah.
spk06: We literally have leasing calls every week. So the baseline is through the software, but, you know, we lean pretty heavily on the actual onsite. Leasing folks and both MRP and ourselves are, you know, are there as well. And so there's a lot of collaboration that goes into these to the pricing of these units.
spk02: And how do asking rents compare at the CODA, say, you know, a square foot?
spk06: To what? To the chase or to what? What's the comparison? What are you looking for?
spk02: So, like, you know, on a per square foot or, you know, you said the Marin's at $4 or something. And I think John said, you know, Doc's at $3.50 or Marin's at $4 or something like that.
spk06: I want to say, Curtis, maybe John III or John Kay could help, but just under $3 a square foot.
spk04: Yeah, that's right, David. It's obviously lower. It's just a different building type and not on the water, that sort of thing.
spk02: Yeah. Great. That's all I had. Thanks a lot.
spk07: Thank you. Thanks, Curtis.
spk01: And at this time, I'm showing no further questions.
spk03: Okay. Well, thank you all for joining us today. Despite the pandemic, we're seeing tremendous progress in the lease-up of our new projects in both residential and industrial spaces. Our lending ventures have benefited from the strong single-family lot demand, and our royalties hit an all-time high this quarter. Our liquidity remains strong with cash and investments exceeding $170 million, despite a very healthy development menu. We appreciate your interest in FRP and look forward to talking to you again next quarter. Have a great day.
spk01: Ladies and gentlemen, this concludes today's call. Thank you for your participation. You may now disconnect your phone lines.
Disclaimer