💰 Growth markets are booming. Here's where.

👋 Hello, Best Ever readers!

In today’s newsletter, growth markets emerge, Yieldstreet investors lose, rents slip, starts spike, and much more.

Today's edition is presented by Sunrise Capital Investors. In its latest fund, Sunrise is using its unique approach to target undervalued opportunities in fragmented markets. Learn more today.

🎓 But first … Join us TODAY at 1 p.m. ET on Aug. 21 for an exclusive free workshop to learn how you can turn your CRE expertise into a bestselling book. Can’t make it? Register anyway, and we’ll send you the replay.

Let’s CRE!

🗞️ NO-FLUFF NEWS
CRE HEADLINES

⚙️ Tariff Expansion: President Trump has expanded 50% steel and aluminum tariffs to include 407 additional product categories covering $320 billion in imports, adding everyday items like car parts, fire extinguishers, and construction materials to drive up costs across supply chains.

📈 Sales Surge: CRE property sales through mid-year jumped 16% to $163.61 billion as brokered transactions rose 21%. Properties valued $25 million-plus lead the charge at $118.37 billion despite tariff uncertainty creating temporary market pauses.

🛍️ Going Small: Retail demand concentrates on spaces under 2,500 sq ft while 10,000+ store closures left behind big-box spaces from 10,000 to 50,000 sq ft, creating a mismatch as retailers need smaller footprints than what's available.

📉 Portfolio Plunge: Yieldstreet customers face massive investment losses, as 23 of 30 reviewed projects hit "watchlist" status and four declared total losses, with the platform's returns plunging from 9.4% to 2% annually.

🏭 Industrial Reversal: The U.S. industrial market posted negative net absorption for the first time since 2009 as occupiers vacated 1.3 MSF more than they leased amid tariff uncertainty, corporate bankruptcies, and space consolidation efforts.

🏆 TOP STORY
ECONOMIC HOTSPOTS: THE BIG, SMALL, AND SURPRISING

So much for the usual suspects. New data analysis of economic growth from 2019-2023 reveals that mid-sized Sun Belt metros and small Arizona cities are leading America's economic expansion, outpacing traditional powerhouses.

The study ranked cities across 11 metrics, including GDP growth, job creation, housing expansion, and business formation, revealing a geographic shift toward more affordable, business-friendly markets that offer both opportunity and livability.

Large Cities (500K+ population):

1. Austin, TX (61 points): The Texas capital leads large markets with a massive 51% GDP surge driven by tech, manufacturing, and professional services, plus a 71% jump in new business applications. It also boasts a 33% median earnings increase across its diverse economy, spanning tech giants, government, and creative industries.

2. Sacramento, CA (nearly 61 points): Not far behind, Sacramento is powered by an explosive 166% surge in business applications and 32% median earnings growth, supported by local initiatives like the Business Solutions Center offering microgrants and data tools to small businesses.

3. Jacksonville, FL (nearly 61 points): Jacksonville dominated population growth at 9% (adding 14,000 residents), along with 43% GDP growth and 25% export gains, backed by JAXPORT's $31 billion annual economic contribution and major infrastructure investments.

Mid-Sized Cities (250K-500K population):

1. Gilbert, AZ (71 points): Anchored by 32% earnings growth and 26% infrastructure expansion, Gilbert also has major roadway projects funded by capital improvement bonds and a highly educated workforce (44% hold bachelor's degrees), supporting tech and healthcare sectors.

2. Tampa, FL (66 points): Tampa’s 38% median earnings increase and 43% GDP surge cement its position as a diversified economic hub beyond tourism with strong population growth and business expansion.

3. Orlando, FL (62 points): Leading in population growth at 14% while posting 36% median earnings gains, Orlando is driven by sustained expansion in tech, aerospace, and entertainment sectors, supporting its evolving economic profile.

Small Cities (Under 250K population):

1. Goodyear, AZ: Once predominantly farmland, Goodyear now exceeds 101,000 residents, plus explosive education and housing growth supported by 5,000 developable acres, freeway access, and foreign-trade zone incentives attracting employers like Sub-Zero and UPS.

2. Nampa, ID: Ranking No. 1 in unemployment reduction and No. 2 in employment growth with a 40% median earnings surge, Nampa is establishing itself as a high-output, low-friction job hub with strong economic fundamentals.

3. Port St. Lucie, FL: Posting a 108% increase in business applications, Port St. Lucie is emerging as Florida's entrepreneurial engine with booming housing, steady GDP growth, and a workforce ready to build new businesses.

THE BOTTOM LINE

For investors looking to identify their first or next market, economic growth is shifting toward cities that combine affordability, infrastructure investment, and business-friendly policies. From Arizona's tech-driven suburbs to Florida's entrepreneurial hubs, these markets are proving that sustained growth comes from fundamentals, not hype.

🏆 TOGETHER WITH SUNRISE CAPITAL INVESTORS
RECESSION-PROOF ASSETS + LIFETIME CASH FLOW

📊 Nearly 70 million Americans are living in housing they simply can’t afford. So where do they turn when traditional housing is out of reach? Mobile home parks — the largest source of unsubsidized affordable housing in the country. At the same time, another overlooked niche is thriving: urban parking facilities, where 285 million-plus vehicles compete for a supply that’s shrinking in growing cities.

Sunrise Capital Investors has cracked the code on these recession-resistant asset classes, delivering 31 consecutive quarters of distributions with zero capital lost. Fund 4 is consolidating these fragmented industries to create significant untapped cash flow opportunities.

Key Fund Highlights:

• Nine cash-flowing properties with $20 million-plus in built-in equity at purchase.

• 14-18% projected total annual returns with 7-8% quarterly distributions.

• Immediate tax benefits: 70% depreciation pass-through in 2024, with 100% Bonus Depreciation restored.

• $100K minimum investment with tiered preferred returns (8-10%).

• 70/30 equity split favoring investors after preferred return.

⏰ Fund 4 is closing in late 2025. Click below to learn more and take the next steps.

💰 CRE BY THE NUMBERS
RENTS SLIP, STARTS SPIKE, AND SENIOR HOUSING RISES

📉 -0.1% 

U.S. apartment rents slipped 0.1% MoM in July, the weakest movement in the post-GFC era during a month that typically sees seasonal growth. Year-over-year rent growth decelerated to just 0.19%, the softest since September 2024, while renewal rents jumped 3.8% as operators prioritize occupancy over new lease pricing.

🏥 4% 

Senior housing delivered the highest NCREIF property type returns at 4% YTD, outpacing the broader index with Q2 returns of 2.08% versus 1.23%. Independent living led with 2.58% total returns vs. assisted living's 1.25%, as occupancy rose 80 bps to 88.1% across primary markets.

🔨 10% 

Multifamily starts spiked 10% in July to a two-year high, driving overall housing starts up 5.2% and beating forecasts. However, multifamily permits dropped 2.8% as the future pipeline shrinks, with permitting down 23% from peak years of 2020-2023 despite strong rental demand from priced-out homebuyers.

📚 FREE LIVE EVENT
JOIN US TODAY FOR OUR VIRTUAL WORKSHOP

What if there was one strategy that could position you as THE go-to CRE expert in your market, generate qualified leads while you sleep, and build unshakeable credibility with investors and brokers?

There is: Writing and publishing your own book 📚

🗓️ Join us TODAY for this Free Virtual Workshop — How to Add 7 Figures/Year in Revenue to Your Business by Publishing a Book — at 1 pm EST with Chandler Bolt of selfpublishing.com.

Can’t make it? Register anyway, and we’ll send you the replay.

🏘️ DEAL OF THE WEEK
17.5% IRR AND 1.7X EQUITY MULTIPLE IN JUST 3 YEARS

Zach Winner and the team at Prosperity CRE doubled the value of this property in just three years, giving investors a 17.5% IRR and 1.7x equity multiple.

Here's how they did it 👇

🏢 Property details: This 80-unit Class B multifamily property, located in Kansas City, MO, was purchased in May 2019.

💸 Finances: The property was purchased for $5.35 million. The team raised $3.4 million in capital and secured a $4.012 million Fannie Mae Green Rewards 10-year fixed loan at 4.75% with three years interest-only.

💼 Business plan: For the first three months, the priority was to fully transition the property into new ownership, integrate operation systems, and prepare for renovations. They also streamlined the handling of any outstanding maintenance requests and arranged 1-on-1 meetings between the on-site manager and each tenant.

In months 3 to 6, the team began exterior renovations, which included parking lot repair, driveway and sidewalk repairs, siding repairs, landscaping enhancements, gutter and downspout repairs, and HVAC unit replacements. Beginning with exterior improvements shows both current and prospective tenants that the new property owners and management team are dedicated to the property and creating a more enjoyable living experience.

In months 6 to 24, the team renovated all 80 units, with a budget of $4,500 per unit ($360,000 total). These renovations included new appliances, refinished kitchen cabinets and countertops, upgraded bathroom fixtures and vanities, and new flooring and lighting. Washer/dryer sets were also installed in each unit for a rent premium of $30 per month.

🍾 Results: The property sold in November 2022 for $10.1 million. Investors realized a 17.5% IRR, 21.5% AAR, and 1.7x Equity Multiple.

💪 Takeaways: "The size of this property was a limiting factor in terms of management,” said Winner. “The learning point for us moving forward is to target properties with 100+ units.”

👉 If you have a deal you'd like us to feature, share it with us!

🎓 EXPERT RESOURCES FROM SUNRISE CAPITAL INVESTORS
FREE DOWNLOAD

UNLOCK THE PARKING LOT GOLDMINE

While most investors chase crowded apartment deals and overpriced office buildings, smart money is quietly accumulating parking lots — one of CRE's most overlooked cash cows. With vehicle registrations surging from 285 million to over 350 million by 2040 and urban density creating severe parking shortages, this asset class is primed for explosive growth.

Inside this exclusive report:

• Cash Flow Maximization: Discover the three revenue streams most parking lot owners completely ignore 💰

• EV & Autonomous Vehicle Impact: Get the real data on how emerging tech creates opportunity (not threats) for savvy investors 🔋

• Acquisition Secrets: The "hidden gem" parking lots that deliver 12%+ returns while others settle for 6-8% 📊