Earnings Call: Q2 2021

Aug 3, 2021

Excuse me everyone. We now have John Baker, Executive Chairman of FRP Holdings Incorporated 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. 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 DeVillier Jr, President of the company David DeVillier 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 4537%, 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 $01 per share versus $4,149,000 or $0.43 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 DeVillier to walk you through our operating results. 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 twenty eighteen-twenty nineteen dispositions of our warehouse platform totaling a little over 4,000,000 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 prudent. In early twenty nineteen, we added an asset to our asset management business segment through the purchase of the Cranberry Run Business Park in Aberdeen, Maryland, 2 Hundred And 60 8 Thousand 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 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 Lupton, our home office, is 95.1% occupied, and we've recently completed a much needed renovation of the First Floor 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 180160 Second Street in July of twenty twenty. '18 oh '1 '60 second Street was responsible for $163,000 of revenue in Q2 of twenty twenty. 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 180160 Second Street. Other assets in this segment remain leased and occupied as in previous periods. The mining and royalties business segment remained strong with revenues of $2,634,000 an increase of $232,000 over Q2 twenty twenty. This was the most revenue in any second quarter ever. Operating profit was $2,292,000 which represents $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 $18.00 $1.60 second Street in Baltimore in July of last year, we were encouraged by the velocity of the submarket 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 submarket. We expect to complete and deliver both buildings in the third quarter of twenty twenty one. Also in the second quarter of this year, we executed a build to suit lease for 101,750 square foot facility at 194160 Second 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 at 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 as 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, Tide Park in Baltimore County, Maryland is now complete. All principal and accrued interest has been repaid and preferred interest and shared profit totaling $1,030,000 have been received. Another lending venture called Amber Ridge is located in Prince George's County, Maryland. Our total commitment for this project is $18,500,000 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 of this year. On the joint venture front, at the end of twenty eighteen, 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 Bryant 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 CODA was placed in service on January first of this year and received final certificates of occupancy on 04/01/2021 for all 154 of its apartments. Thanks to herculean efforts from our leasing team, Coda was 88.3% leased and 67.5% occupied at the end of the second quarter. Of note, as of August 1, Coda was 93.5% leased and 85.7% occupied. With the leasing success of CODA, despite COVID challenges, we are optimistic about the leasing velocity for the neighboring two buildings at Bryant 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 four eighty seven apartments in 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 twenty nineteen, 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 Marron And Dock 79. In August of twenty twenty, 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 three forty four apartments and 11,246 square feet of ground floor retail and is scheduled for completion in the summer of twenty twenty two. At quarter's end, The Verge was 27% complete. This project is also located in an opportunity zone. Also in December of twenty nineteen, 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 twenty twenty and is on the doorstep of completion. Pre leasing efforts began in the July. The second JV with Woodfield is a two twenty seven unit multifamily development entitled 0.408 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 twenty twenty and should be complete in the summer of twenty twenty two. Currently, this project is 54% complete. Riverside and 0.4 HX represent a $15,900,000 investment from FRP for the 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 $4,300,000 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 $10,500,000 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 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 Existing land leases for the storage of trailers will help to offset our carrying and 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 twenty twenty three. Moving on to our stabilized joint ventures business segment. In July of twenty nineteen, we completed a partial ten thirty one like kind exchange by investing $6,000,000 for twenty six point six percent beneficial interest in a Delaware statutory trust for DST that owns a two ninety four 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 20 20 1 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 II of our riverfront on the Anacostia project in Washington, D. C, known as Marron, reached stabilization or 90% occupancy of its two sixty four apartment units and as a result of this milestone, joins Dock 79 and Hickory Creek in our stabilized joint ventures business segment. At quarter's end, '90 '4 point '7 percent 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 Dock seventy nine, 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 March 2020 and reached stabilization of 90% in less than twelve 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 Dock seventy nine, its three zero five 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 seventy nine has fared quite well over the past year despite the significant interruptions we all experienced. Those 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, and we look forward to full retail occupancy in late twenty twenty one. Dock '70 '9 was our first joint venture with MRP, and FRP is the major partner with sixty six percent ownership position. Revenues for the quarter for both Dock seventy nine and Marin were $4,800,000 up 96.7% over the same period last year, primarily due to Marin's lease up. Marin revenue represents $2,160,000 and Doc seventy nine claims $2,660,000 in revenue, an increase for DOC of $208,000 over the same period last year. NOI for the quarter in this business segment was $3,000,000 a little over $3,000,000 up 1,380,000 which is 83.6% over the period last year. Thanks again to the addition of Marin to this business segment and its listing 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 climate. 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 sixteen 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-nineteen. Thank you. And I'll now turn the call back to John. Thank you, David. We will now open it up for questions from the floor. At this time, we will open up for questions. Our first question comes from Bill Chen with Ryzone Partners. Guys. Good morning, Bill. Good morning. I didn't realize I was gonna go number one. Well, great results as always. I got a few questions, and I think I'll just run through them. What on the first quarter filing, it show that the the split between FRP and MRP was 72.38. I think there was some adjustment. The MRP wind up getting a little more. What what what was, the final split? The final split For the merit net? Well, started, as you know, we started out at 80%. And then as we started to get 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 then reduced our ownership a little bit further to the agreed upon ownership percentage of 70.41% for FRP. And that's what it'll be going forward. Gotcha. So that's seven seven zero point four? Seven zero point four one. Yes. Okay. Gotcha. Yep. Oh, thank you. The let me see. If if I on Bryant Street, I think the the you you referenced that 67% of the retail is, preleased. And I 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 Bryant Street? Well, we have we have several different types of bill as you as you alluded to of retail there at Bryant Street. We have, obviously, the Alamo, which is one. We have what we call small shop 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 effectively a % leased and waiting for its final certificate of occupancy. So the area that still needs most lease up is probably the small shop retail Mhmm. Because that totals about 23,000 square feet across all four buildings, and we have 9,000 square feet of that preleased. Gotcha. And that's 9,000 pre leased? Okay. Yeah. Of that particular type. Yeah. Yeah. The, the MetroCard barcode set looks, looks really cool. That's the outside pop up. Yep. Yep. That's yeah. I I'm jealous. You guys get to do some stuff that that folks here in New York just don't have the chance to do stuff like that. So that's that's really cool. The jumping around back to doc 79, you mentioned that the overage payment on the restaurants at Doc 79 is a hundred 20,000. How does that compare to 2019, which is a more normal year? Well, we weren't we didn't have all three of them up and operating fully in '19, so it's kinda hard to, you know, to compare the two. Okay. But it is it it least a couple of the rest the two restaurants that we're operating fully, it's it's back to where they were in in '19. Oh, wow. Okay. That's that's fantastic. '19. You know? '19 might have been almost unrealistically exceptional given that the Nats went to the World Series, and that that obviously helped. Yep. Got you. That's that's helpful color. I actually was down there in October 19, and I remember being mobbed. The the can you update us again on that remaining space? That that what space that got leased? What what's that concept for, and how how many square foot is that for? Bill, it's about 3,500 square feet. It's right on the Esplanade, and they're under construction there now. It's a kind of a a little bit of a different concept. It's, it's got kind of a bike theme to it. There'll be more, I think, breakfast and lunch, served there than certainly the other the other venues. So we think it works very well, with the other venues that are there at the Hock and Marin. Got you. Thank you. That's that's helpful. The on on Riverside in Greenville, everything that I've been hearing about Greenville has kinda exceeded my expectation. I know that you guys have not started leasing yet, but in terms of the go to market asking rent, it like, how does that compare to what you guys have previously budgeted for? It it's just that what what and I asked I I know it's kinda 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 if you're seeing kind of similar, outlook on rent there. Well, it's a little early to tell, Bill. The 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 10 preleases already, and they seem to be somewhat equivalent to what our budgeted numbers were. But it's all too early to to tell. We'll have a better idea next quarter. Got you. Yeah. No. I mean, I I I know, like, I'm I'm probably my question is probably a little bit early, but, the excitement on the investment community towards Sunbelt multifamily has just been off the charts lately. And, my last question would be on on Bryant Street. I know CODA is kind of a more affordable product, and and the leasing on that has been absolutely astonishing. Any thoughts on the remaining assets? I guess they're kind of 20% more expensive on a per square foot basis, kind of feels on on kind of demand for for the remaining products? Well, we just again, with the success of Dakota, we're obviously encouraged about the leasing velocity for these two buildings. Chase, as you know, is two buildings. They total about a 50 some units per building, And we did not do any pre leasing there because of the of trying to get where it is. And obviously, the success of CODA has certainly bolstered our encouragement towards the chase. But it literally, we I believe that Friday we got the certificates of occupancy for the first couple of floors. So again, a little premature on the 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 literally the tale about the rents. Got Thank you. Thank you for that color. And and one last question. In in the filing, you mentioned that, you know, the the rent the rent the the rent regulation in DC, it's gonna be February before we could actually increase rent in Dock 79 and then the Marin. You know, finger in the air, it's been, I guess, that point, it'd 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 when we're able to increase rent in the Dock 79 in the Marin? I'm just kind of thinking two years, two point five percent, three percent a year that we weren't able to push through. That a fair assumption? 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 in December, the December. We do these renewals and so forth and so on out about sixty days. So that takes us into February or possibly March. So it's kind of determined, you know, that the timing is 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. Bill But you you little a little color would be that the average rent in the Meron is $4 a foot, and the average in dock is $3.50. Mhmm. So, you know, I would expect that that doc would move up. And and, you know, of course, now Marin's frozen. And so, hopefully, that'd be at least what you're saying. Gotcha. Gotcha. Yep. Well, thank you, gentlemen. Those those are all my questions. Great results. And look forward to being down there to see these assets in person sooner rather than later. Thank you. Thank you, Bill. Love to see you. We'll take our next question from Steven Farrell with Oppenheimer and Close. Good morning, everyone. Good morning. I just have a quick question. With respect to Bryan Street, will that follow a similar path as the Marin And Dock 79 and that upon stabilization, you'll refinance and consolidate? Or is stabilization of all four buildings when that would happen? It will not follow that path, Steven, because of the opportunity zone treatment. Just had a different setup for that than for DOC 79 in the Merit. You know, it'll stabilize and we'll refinance, but we're it will not consolidate onto our books because, it doesn't have the same, you know, control trigger when it hits, stabilization. So it'll stay on the joint venture equity accounting. Yeah. Equity accounting. Okay. And do you expect that to happen for the CODA this quarter? Or Has to be the whole project, Steve. And so we The whole project. To chase it. Yes, sir. Okay. Good. That makes sense. Thank you. In the next year, really, over the next quarter and two years, 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 three and four of Anacostia? I think we have we look at all aspects of our business the same way. We'll see how Bryan Street goes. We're doing some predevelopment 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. And are you seeing a lot of other residential buildings coming to market, right now too or no? I'm I'm sorry. You broke up a little bit, Steven. Sorry. In the DC area here, are you seeing, a lot of competing residential buildings around Bryant Street and near the Marin? Yes. There's there's other there's other, obviously, developments going on in on and around our projects at at Maren And Bryant Street. We think we've got some some 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, you know, venue activity that, most of the place of the urban developments there do not have. Same thing holds true for Marin And Dock, being down on the water. Good. Well, that's like to think we have a leg up. Yes. Me too. Steven, to dig further into your question, we would go to a Phase II 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 we feel like we have got, you know, a long runway of of projects 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 amenity was the Alamo Theater. The our entrance our ability to access the transit is has been zero, and, obviously, COVID has made transit less of an amenity. 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 we're optimistic about the rest of that project. Great. Thank you for the additional color. That's all the questions I have. Next question comes from Curtis Jensen with Robotti and Company. Hey Curtis. 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 what you know, anything about what you think that will do in terms of NOI on a run rate basis or something? Or range? Well, we have a lease with both leases are complete. I would say that the which is the taking of the large space on the water, believe is about 5,500 square feet, Curtis. And I think they're, gonna 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 gonna pay us a percentage of revenues. So, you know, it's kinda hard to say, but that's that's kinda where we are right now. And these places really won't be up and running. There'll be some, you know, some some free rent, that comes about in 2022. But I think once they get up and running, $250,000,000 plus is going to be where you are. Okay. And it looks like the Marin did, guess, for the quarter starting April 1, dollars '1 point '3 '8 million on an NOI basis. Is that at a 90% occupancy or something like that? Okay. That the ballpark? Am I taking that off? Yes. The press release? About right, yeah. I got to remember, we were still ramping up. But yeah, we'd like to think we're going do a little bit better in March. Are you guys being held up at all? Maybe it might be more relevant for like the chase in terms of materials, appliances getting appliances delivered and things like that? Or has any of that eased up? Yes. We've had our issues, the chase obviously, and CODA 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 materials were committed to before COVID hit. But we lost a couple of months for sure. But one of the things is that Chase is opening up. We wanted to get it 100% buttoned up before we opened it up, which we did towards the end of last week. So but they're going to open up. They're opening up with all three thirty three apartments ready to go. Okay. 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 or the Frederick Douglass Bridge? 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. I would say this time, like this time next year, it will be done. All right. And I guess you David, you had mentioned that I think Bezuto uses the YieldStar software to kind of rent 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 trade off between heads and beds as you call it versus maybe maximum. I mean, is there any kind of human judgment around the YieldStar thing? Or is he they just We literally have leasing calls every week. So the best line is is the software, but, you know, we we lean pretty heavily on the, the actual on-site leasing folks, and both MRP and ourselves are there as well. And so there's a lot of collaboration that goes into these to the pricing of these units. And how do asking rents compare at Dakota say, you know, a square foot? To what? To the Chase or to What's comparison? What are looking? So like on a per square foot or you said the Marin's at $4 or something. And I think John said DOCS at $3.5 or Marin's at $4 or something like that. I want to say, Curtis, maybe John III or John K can help. But that was just under $3 a square foot. Yes. That's right, David. It's obviously lower. It's just a different building type and not on the water, that sort of thing. Yes. Great. That's all I had. Thanks a lot. Thank you. Thanks, And at this time, I'm showing no further questions. 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 $170,000,000 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. Ladies and gentlemen, this concludes today's call. Thank you for your participation. You may now disconnect your phone lines.