Beyond The Summit

On the Road for Orchids

If you've been following our recent travels, you might have noticed a recurring theme popping up between investor meetings and strategy sessions: orchids.

Over the past couple months, we've had the chance to visit two private orchid collections, explore several greenhouses, and attend more than a couple of west coast shows. 

Sometimes our love of orchids is the reason we hit the road in the first place—and other times, it's a happy detour during a business trip. Either way, it’s become one of our favorite ways to slow down, recharge, and get inspired.

There’s something captivating about these plants. Each variety is wildly different—from the bold and dramatic to the delicate and strange. Some bloom once a year, some only under perfect conditions, and others surprise you when you least expect it. 

They’re temperamental, beautiful, and full of lessons about patience, timing, and growth. This part of our lives doesn’t show up on spreadsheets, but it’s just as much a part of the journey. 

National Market News

Holding the Line; Strategically

April was a reminder that uncertainty doesn’t ask for permission.

Markets have been rattled by trade policy reversals, bond selloffs, and contradictory economic signals. For investors across the board, one question is growing louder:

Where do you park your money when traditional markets feel more like a roulette wheel?

Because here’s the harsh reality: when your investment loses value, it has to grow by a much larger percentage just to get back to where it started. A 20% loss doesn’t need a 20% gain to recover—it needs a 25% gain. And deeper losses are even harder to climb out of.

Economic Signals are Shifting

The U.S. economy contracted by 0.3% last quarter—its first decline in three years and well below expectations for growth. Private payrolls also fell short, rising just 62,000 in April; barely half of what was forecast. Much of the slowdown stemmed from a spike in imports following new tariff announcements, which weighed on GDP. Whether this trend continues or rebounds remains uncertain—but the signal is clear: momentum is slowing, and volatility is rising.

Earlier last month, the Trump administration announced a 10% baseline tariff on imports from most countries, with higher rates scheduled to take effect after a 90-day negotiating period. Days later, many of those tariffs were temporarily paused in response to a bond market selloff and steep equity losses.

Officials have framed the reversal as part of a longer-term trade strategy, but the volatility underscored a deeper market truth: tariff policy is now a meaningful source of economic uncertainty. These shifts have reignited fears of stagflation—where inflation remains high while growth slows.

This is creating a feedback loop of caution. As Blackstone CEO Stephen Schwarzman recently noted, "the full implications of these tariffs are still unknown, and the complexity of the current environment means that patience and staying power are key.”

Tariffs, Construction, and the Tightening Development Pipeline

The resurgence of tariffs is adding new pressure to an already fragile development environment. Rising costs on materials like steel and aluminum are squeezing project feasibility, pushing developers and investors to shift focus away from new builds toward stabilized assets with operational upside.

Even before tariff headlines returned, multifamily construction was already in steep decline. Yardi Matrix reports that new starts dropped 50% in Q3 2024 compared to the prior year. This slowdown started during COVID, when construction froze, material imports halted, and permitting backlogs began stacking up. 

Layer on rising costs and elevated interest rates, and the result is a sharply reduced development pipeline. MMG forecasts a 41% drop in new supply for 2025, with a significant supply gap expected between 2025 and 2028—creating real opportunity for investors who are positioned now.

What This Means for the Future

The headlines around tariffs, inflation, and construction slowdowns aren’t just noise—they’re signals.

New supply is drying up as higher costs, tighter credit, and material shortages make new development harder to justify. Inflation is raising the cost to build and replacing assets, while rising interest rates are sidelining more speculative capital.

For us, that’s not a problem—it’s an advantage.

Less new competition means existing assets in growing markets become even more valuable. As building gets harder, properties already producing income gain pricing power simply by meeting demand. Meanwhile, inflation tends to strengthen real assets, especially those with stable operations and the ability to adjust rents over time.

Rather than reacting to headlines, we focus on positioning in the path of long-term demand: strong markets, essential housing, and cash-flowing assets.

Volatility is inevitable. But patience, discipline, and sound strategy turn today's uncertainty into tomorrow’s opportunity.

Local Market News

The Market Hiding in Plain Sight

We’ve talked before about Tyler’s infrastructure investments, its revitalizing downtown, and the industrial developments reshaping East Texas. But for those who missed the earlier editions—or are just getting to know this market—here’s the big picture.

Just 90 miles east of Dallas, The 'Best City to Retire in America' continues to benefit from the affordability crunch in major metros. With nearly 30,000 new residents since 2020, it’s clear that families and businesses are taking notice.

The local economy is diverse and resilient, anchored by sectors like healthcare, higher education, manufacturing, and logistics. Major employers such as UT Health East Texas and UT Tyler provide steady job creation, while new industrial developments continue to expand the city’s reach.

The Affordability Edge

Affordability remains one of Tyler’s defining strengths. The area median income is approximately $68,000, supporting a cost of living that is 10–15% lower than major Texas metros like Austin and Dallas.

While larger cities across Texas have seen rent growth slow or even reverse, Tyler continues to demonstrate resilience, with rents rising 2.1% year-over-year. This steady demand, coupled with a lower overall cost of living, positions Tyler as a stable and accessible market for residents seeking both quality and value.

Why Tyler Stands Out

Tyler’s story isn’t about hype—it’s about fundamentals. This is a market where strong job growth, consistent in-migration, resilient rent performance, and affordability continue to support long-term demand.

Local leadership has invested heavily in infrastructure and economic development, creating the kind of environment where new residents, businesses, and opportunities are taking root. For those seeking stability and steady growth, Tyler offers a clear and compelling case.

Current Opportunity: Oxford Pointe

For accredited investors seeking to position ahead of the next growth cycle, our current offering, Oxford Pointe, is open and actively accepting commitments.

Oxford Pointe is a stabilized, 152-unit multifamily asset in Tyler, Texas, benefiting directly from the dynamics discussed in this newsletter: limited new supply, growing demand, and strong local fundamentals.

This is a 506(c) offering, for accredited investors only.

The Path Forward

Opportunities Exist for Those Who Are Prepared

Uncertainty often paralyzes the market. But history shows real opportunity isn’t found in times of absolute clarity—it’s seized by those willing to act thoughtfully when others hesitate.

As tariffs add pressure, new construction slows, and economic signals remain mixed, the next phase of growth won’t be driven by speculation. It will belong to those who positioned early in strong, stable markets backed by real fundamentals.

Markets like Tyler—where affordability, job creation, and resilient demand provide a foundation for long-term performance—represent that path forward.

The environment may be complex, but the strategy remains simple: stay focused, stay prepared, and continue building where the fundamentals still make sense.

Thank you for your continued trust and partnership.

Reach Your Summit

Disclaimer:

This newsletter and any accompanying information are intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to purchase any investment. Any such offer or solicitation will be made solely through formal offering materials, such as a confidential offering memorandum, and only to individuals with an established relationship with Bright Peak Capital.

The content provided herein does not constitute legal, tax, or investment advice and does not take into account your specific financial circumstances, investment objectives, or needs. We strongly encourage you to consult with your legal, accounting, and financial advisers before making any investment decisions.

While the information presented is sourced from what we believe to be reliable materials, Bright Peak Capital does not guarantee its accuracy or completeness and accepts no liability for reliance on this information. Investing involves risks, including the potential loss of principal, and past performance is not indicative of future results.

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