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  • 🏁 This firm is staying ahead of tariffs. Here's how.

🏁 This firm is staying ahead of tariffs. Here's how.

Plus: The multifamily metric Jay Parsons is watching most, how a car wash became a thriving food hall, and a full recap of BEC IX.

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👋 Hello, Best Ever readers! Quick PSA: If you ever miss an edition of the Best Ever newsletter or want to find a previous post, they can all be found here.

In this week’s newsletter, we recap the best from last week’s Best Ever Conference, including how one firm is already beating tariffs, Jay Parsons’s key multifamily metric to watch, how a car wash became a thriving food hall, and more.

Today’s edition is presented by Capital Gains Tax Solutions. Selling a property shouldn't mean losing 20-50% to taxes. Let Capital Gains Tax Solutions create your personalized exit plan and calculate your savings today.

Let’s CRE!

🗞 NO-FLUFF NEWS
CRE HEADLINES

💰 Tax Showdown: A Congressional proposal that could limit property tax deductions for businesses has been met with resistance from CRE organizations. Citing that the deduction would hike tax burdens by 40%, the group argues that the potential damage to CRE would be “almost too significant to imagine.”

📈 Asking Rents Rise: U.S. median asking rent rose 0.4% YoY in February to $1,607, the first increase in six months and the largest in nine months. Despite the slight increase, rents have remained stable for the past 10 months as rental supply and demand have equalized following dramatic fluctuations during the pandemic.

👀 Rent Cap Bill Approved: A bill capping yearly rent increases at 7% passed the Washington State House on Monday. The bill also prohibits rent increases during the first year of tenancy, requires 90-day notice before increases, and limits rent differences to 5% between similar units. The bill now heads to the Senate where a similar bill lapsed in the chamber last year.

📉 Self-Storage Slowdown: Self-storage construction starts decreased 20% in 2024 from 2023. while the under-construction pipeline contracted 1.8% in Q4 and has declined 6.7% from its December 2023 peak. Construction is expected to drop to 2% of inventory by 2027 and 1.5% through 2030.

💥 Sun Belt Boomtown: Orlando, FL, ranks among the nation's fastest-growing apartment markets, adding 14,012 new units in 2024. Kissimmee/Osceola County contributed approximately one-quarter of this growth, positioning Orlando between major Northeastern markets Newark (15,300 units) and Washington D.C. (13,300 units).

🏆 TOP STORY
HOW ONE FIRM IS STAYING AHEAD OF TARIFFS (FOR NOW)

Everyone’s talking about tariffs. So, it stands to reason that when Frank Roessler, co-founder of Ashcroft Capital, took the stage at the Best Ever Conference last week as part of a panel discussion on the state of the multifamily market, he was asked how his company is preparing for tariffs. 

Roessler explained how Ashcroft has supercharged vertical integration and streamlined renovations by developing an innovative procurement system that provides both cost savings and protection from supply chain disruptions. 

  • The Strategy: Ashcroft works directly with factories in Vietnam and India, bypassing middlemen and sourcing 82 different SKUs including lighting, sinks, and faucets. They buy materials in quantities of $3-5 million on their balance sheet, storing inventory in a centralized Dallas warehouse. Their team then unboxes materials and creates standardized renovation kits (one-bedroom, two-bedroom, etc.) that are shipped directly to properties for rapid installation.

  • A Focus on Quality: When visiting Vietnamese factories, Roessler discovered that many manufacturers offer different quality tiers. “[One] is going to last you six months and it'll break, or [the other] will last you 10 years,” Roessler said, revealing that "it's really the American companies that are opting to buy the cheapest product that Asia might be manufacturing.” His team, he says, always opts for higher-quality materials.

  • Staying Ahead of Tariffs (for Now): Their warehouse strategy provides protection against short-term tariff impacts, as they are well-stocked. "We've got a pretty good supply in our warehouse in Dallas still,” Roessler said. “We probably won't be buying again till perhaps the end of this year or beginning of next."

By bypassing traditional U.S. suppliers and working directly with overseas manufacturers, Roessler’s team creates standardized, high-quality renovation packages while saving about 30% on materials costs. This streamlines renovation projects and timelines and, in the short term, insulates the company from the impact of tariffs.

WHAT IT ALL MEANS

For multifamily investors, Ashcroft's approach demonstrates how operational innovation can create significant advantages in challenging markets. While not every operator can implement a global procurement strategy at this scale, the principles of standardization, a focus on quality, and strategic sourcing can be applied at various levels. As renovation costs and supply chain disruptions continue to impact the industry, such approaches may become increasingly important for maintaining competitive margins and execution speed.

👉 For more on this and more from BEC IX, read the Day Two recap here.

💰 CAPITAL GAINS TAX SOLUTIONS
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  • Multiple clients rescued failing 1031 exchanges with Capital Gains Tax Solutions’ specialized exit plans

Don't settle for outdated strategies. The Deferred Sales Trust advantage gives you flexibility, time, and control while allowing your wealth to compound as you slowly pay taxes over time.

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💰 CRE TRENDS
WAGE GROWTH OUTPACING RENT GROWTH

While multifamily investors face headwinds from record supply and stagnant rent growth, Jay Parsons of Madera Residential took the stage at BEC IX to highlight a significant positive trend: wage growth is consistently outpacing rent growth, creating a healthier rental ecosystem.

Key metrics Parsons highlighted include:

  • Wage growth has consistently outpaced rent growth for over two years

  • National rent growth has hovered around 0% for about 18 months

  • Nearly 2 million market-rate apartment households have been added since COVID

  • Institutional-grade properties show renters spending just 20-23% of income on rent

  • Class C properties in high-supply markets seeing rent declines of 5-8%

This trend widens "the demand funnel," allowing more people to qualify for apartments. While the immediate impact means flat or declining rents in many markets, the long-term outlook is positive: as supply drops to decade-low levels over the next 12-24 months, this expanded rental pool should drive stronger occupancy and eventual rent growth.

"Ultimately, this is a good thing for renters,” Parsons said. “And long term, it's a good thing that we're widening the demand funnel. This is a very positive trend. It's a win-win. We all like win-wins."

👉 For more on this and more from BEC IX, read the Day One recap here.

🗓️ BEST EVER CONFERENCE X
JOIN US FOR BEC X, FEB 17-19 IN SALT LAKE CITY

If you joined us last week in Salt Lake City for BEC IX, thank you for making it an unforgettable event.

If you didn’t make it … we missed you!

And we’re already looking ahead toward our 10th anniversary, BEC X, February 17-19, back in Salt Lake City. We’re working on delivering the best speakers ever, the brightest minds in commercial real estate, and the same elevated community of serious investors who are looking to grow, form meaningful connections, and get more deals done.

If that sounds like you, click the button below to register. The price will never be lower than it is right now.

See you in Salt Lake!

🏠 DEAL OF THE WEEK
HOW A CAR WASH BECAME A THRIVING NASHVILLE FOOD HALL

Tyler Cauble took the stage in BEC IX last week as part of Ash Patel’s Beyond Multifamily panel. During the discussion, Cauble broke down how his team at Hamilton Development transformed an abandoned car wash into a thriving East Nashville food hall by reimagining its potential and creating a new business incubator model.

Here's what they did 👇

🏢 Property Details: The six-bay car wash property at 1101 McKennie Ave in East Nashville, Tennessee, was acquired in 2020. The wash was run down and the equipment was in desperate need of replacement.

💸 Finances: The property was purchased for approximately $412,000 for the land value. Additional renovation costs went into converting the bays into restaurant-ready spaces.

💼 Business Plan: Rather than viewing it as a car wash requiring costly equipment replacement, Cauble reimagined the six-bay structure as "The Wash" — a micro food hall with five restaurants plus a craft cocktail bar. Each restaurant occupies approximately 240 square feet, significantly reducing startup costs for small restaurant entrepreneurs. The business model includes:

  • Year-to-year flexible leases instead of long-term commitments

  • Pre-equipped kitchen spaces with low build-out costs

  • Shared outdoor dining area with approximately 80 seats

  • Pass-through windows for easy pickup with dedicated 15-minute parking spaces

🍾 Results: The Wash has become a thriving community hub and business incubator. Within weeks of opening, the waitlist to sign a lease grew to more than 30 restaurants.

💪 Biggest Challenge: "The Wash is not scalable nor is it likely to be massively profitable, but that's not particularly the point," Cauble said. The primary challenge was creating a concept that could serve two purposes: providing affordable entry points for restaurant startups while revitalizing an underutilized property in a growing neighborhood.

🔑 Key Innovation: Cauble's approach of "applying a real estate layer over everything" allowed him to see value where other investors couldn't. By thinking beyond traditional property uses, he transformed what others saw as an expensive renovation liability into a unique community asset and business opportunity.

👉 For more on this debate and from BEC IX, read the Day One recap here.

 Plus, if you have a deal you'd like us to feature, share it with us!

👊 BEST EVER DEBATE
HAS THE FED ACHIEVED A SOFT LANDING?

BEC IX brought together some of the brightest minds in CRE to debate one of the most divisive topics regarding the state of the economy: Has the Fed achieved a soft landing, and has a new real estate cycle begun? 

The debate featured the Mad Scientist of Multifamily, Neal Bawa, and the Co-Founder of Aspen Funds, Bob Fraser, arguing for the motion with economist John Chang and CRE expert and self-proclaimed data nerd Greg Katz opposing it. Here are the key points, along with each side’s argument.

  • Definition of a "Soft Landing": The "For" side sees Fed rate cuts as historically signaling a soft landing and achievement of stability. The "Against" position notes inflation remains above the 2% target and the Fed has only reversed 100 of 525 basis points, suggesting concerns remain.

  • Economic Resilience vs. Inflationary Pressures: Supporters cite strong consumer spending, low household debt, and healthy GDP growth despite rate hikes. Critics highlight persistent inflation in everyday costs and eroded consumer confidence, arguing the "landing" hasn't been soft for average Americans.

  • The Trump Administration's Impact: The "For" view argues Trump's policies (workforce reductions, deportations, increased energy production) will be net deflationary. Opponents counter that tariffs on 45% of consumer goods and labor shortages from immigration restrictions will drive up costs.

  • The AI Revolution's Economic Effects: Proponents see AI as a bigger economic accelerator than the internet, justifying current valuations. Skeptics point to infrastructure limitations delaying implementation and compare high P/E ratios to the dot-com bubble, suggesting disconnect from practical realities.

The packed room at BEC IX voted in real-time, with 55% of the audience agreeing that yes, the Fed had achieved a soft landing. Now that you’ve heard the argument for each side, what do you think?

Has the Fed achieved a soft landing, and has a new real estate cycle begun?

Login or Subscribe to participate in polls.

👉 For more on this debate and from BEC IX, read the Day One recap here.

🙏 Thanks for reading!

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Have a Best Ever day!

—Joe Fairless