Today is another AMA episode, (Ask Me Anything). Our question comes from Tracy in Washington State who writes:

I’m working on a 144-unit apartment project in an older jurisdiction where the city is charging about $7,000 per unit for water and sewer—so roughly a $1M fee. At the same time, we’re bringing the main to the site, installing all laterals, and handling all on-site infrastructure.

Based on public records, the sewer system is operating at around 50% capacity, and the fees from this one project would represent a large portion of their annual water improvement budget. So it’s hard to see how the fee is tied to actual impact versus funding broader system upgrades.

On top of that, they’re requiring roughly 1,000 SF of open space per unit plus additional private open space. This equates out to over 3A on a 6A site, obviously this significantly impacts density and overall feasibility.

I have built in 5 different jurisdictions near by and they all have different requirements compared to this project. but similar requirements to each other: Water/sewer would be approx $42K and the open space requirement 200-300 sf per unit.

I feel that my project is right in line with the City goals stated in the comprehensive plan, but the development requirements would prevent almost any multi-family project from getting built.

In your experience, how do you actually get a city to move on issues like this? Push for a development agreement, challenge the fee structure and nexus, or leaning into the economic impact and negotiate

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**Real Estate Espresso Podcast:**
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LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
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On today's show we are analyzing an office to residential conversion project in Washington DC that was reported in the Wall Street Journal. The developer bought it at a great price of $25.53 per square foot, far below replacement cost. But the geometry of the building is not ideal. The usable area is far below the total unless major modifications are made to the building's interior. The biggest question is whether the market will realistically absorb a large number of units in that location, given the lack of community amenities like schools, groceries, health care. It's in the tourist and business core of Washington DC.

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**Real Estate Espresso Podcast:**
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Website: [www.victorjm.com](http://www.victorjm.com)
LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
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Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
**Y Street Capital:**
Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
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Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

We have a new sponsor on the Real Estate Espresso podcast. If you’ve been listening to the show for a while, you’ll know that we have rarely had any sponsored content at all. That’s intentional. We’ve had plenty of offers to sponsor the show.

Our sponsor is The Cost Seg Guys. If you own investment real estate and haven’t looked seriously at cost segregation, you could be leaving significant tax savings on the table. The Cost Seg Guys help investors accelerate depreciation, improve near-term cash flow, and make more efficient use of capital, all without changing the underlying asset. In a business where preserving cash matters, that’s worth paying attention to. If you’re interested in learning more, send an email to podcast@victorjm.com and put Cost Seg in the title and see whether your property qualifies. I can tell you from first hand experience, that cost segregation can be a low cost high value exercise. Send an email to podcast@victorjm.com and put Cost Seg in the title.

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Today we’re taking a hard look at the current state of real estate inventory in Cape Coral, Florida, and more importantly, what those numbers actually mean for investors.

We looked at Cape Coral specifically last year as a bell-weather for markets across the sunbelt. At the time, there was a huge spike in inventory. It’s time for an update.

Because when people hear that inventory is falling, the natural instinct is to think the market is tightening and prices are about to run. That is not always true. Sometimes falling inventory means homes are selling. Sometimes it means sellers are simply giving up and pulling properties off the market.

------------

**Real Estate Espresso Podcast:**
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Website: [www.victorjm.com](http://www.victorjm.com)
LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
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Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
**Y Street Capital:**
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Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

On today’s show, we’re talking about the lasting impact of war in the Persian Gulf on oil prices, and more importantly, the cascading effects on real estate here in the United States.

When conflict broke out in the Persian Gulf, the first reaction in financial markets was almost automatic. Traders bid up the price of oil. That response is understandable. A large portion of the world’s seaborne crude passes through the Strait of Hormuz, and any threat to supply got reflected in price almost instantly.

But here’s where we need to separate headlines from economic reality.

A spike in oil prices does not affect every form of energy equally. In the United States, natural gas is largely a domestic market. It has its own supply dynamics, its own pipeline network, and its own storage system. So even if crude oil jumps dramatically because of geopolitical tensions, natural gas in the U.S. may hardly move. The US exports about 20% of its natural gas production. That percentage is limited by the capacity of the existing LNG plants. When all the LNG plants under construction are completed, the percentage of US production available for export might increase to 30 and maybe eventually 40%. But that is years and possibly decades away.

So where will we actually see the impact?

We’ll see it first in transportation.

Diesel prices matter enormously. Diesel is the fuel of the real economy. It moves construction materials, food, appliances, furniture, HVAC equipment, steel, lumber, concrete additives, and labor crews. If diesel rises meaningfully, the cost of moving goods rises with it. That affects construction sites, distributors, warehouse operators, and every supplier feeding construction.

------------

**Real Estate Espresso Podcast:**
Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
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Website: [www.victorjm.com](http://www.victorjm.com)
LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
**Y Street Capital:**
Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

If you've driven through any American town or suburb lately, chances are you've noticed a vacant Walgreens. Or a shuttered CVS. Or a boarded-up Rite Aid. These aren't isolated closures. This is a structural, sector-wide contraction that is reshaping the retail landscape in ways we haven't seen before.

Here's the scale of what's happened. Walgreens has closed 1,200 stores over the past three years. CVS has shuttered more than 1,170 locations since 2022. And Rite Aid — a 63-year-old chain that once operated nearly 2,400 stores — went through bankruptcy twice and closed its last location in late 2025. It's gone. Entirely. In total, roughly 7,000 pharmacies across the country have closed since 2022. One in three pharmacies that existed in 2010 no longer exists today. Nearly 50 million Americans now live in what researchers are calling a pharmacy desert.

So what does the industry say to do with them?

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**Real Estate Espresso Podcast:**
Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
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Website: [www.victorjm.com](http://www.victorjm.com)
LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
**Y Street Capital:**
Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

Joel Friedland is based in Chicago where he has a sizeable portfolio of industrial properties, virtually all of them are debt free. This is a choice, not an outcome.

Today's conversation contains several counter-intuitive revelations.

To connect with Joel visit https://www.britproperties.com/

-----------

**Real Estate Espresso Podcast:**
Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)
Website: [www.victorjm.com](http://www.victorjm.com)
LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
**Y Street Capital:**
Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

Joel Landon is based in Salt Lake City and he is with Heritage IRA. On today's show we are talking about the opportunity to reduce your 2025 tax obligation by taking action before April 15. Joel walks us through some of the types of opportunities that still exist to turn back the clock to 2025 and still influence the outcome. To connect with Joel and to learn more, visit heritageira.com

----------------

**Real Estate Espresso Podcast:**
Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)
Website: [www.victorjm.com](http://www.victorjm.com)
LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
**Y Street Capital:**
Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

Today we’re talking about the war in the Persian Gulf, and why a market like Lake Charles, Louisiana could be a real beneficiary, even if the war were to end today.

The Strait of Hormuz is one of the most important energy chokepoints in the world. A meaningful share of global oil and gas moves through that corridor. When conflict disrupts flows through that region, the world starts looking for stable, dependable alternatives.

The war is also widening the pricing gap between U.S. natural gas and gas in Europe and Asia. Scott makes the point very clearly. If you’re a chemical manufacturer deciding where to build, and gas is $14 in Germany but $3 or $4 in Louisiana or Texas, that’s not a hard decision. That makes Louisiana more attractive not only for LNG, but for petrochemical and energy-intensive manufacturing investment as well.

Louisiana is already a major energy state, and several LNG projects in Calcasieu Parish have either advanced or received major commitments recently, including Woodside’s Louisiana LNG project in 2025, while other Louisiana-area projects have also moved ahead. Just last week, Venture Global announced final investment decision for its CP2 project which is an $8.5B expansion of its LNG plant located south of Lake Charles on the Gulf coast.

-------------

**Real Estate Espresso Podcast:**
Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)
Website: [www.victorjm.com](http://www.victorjm.com)
LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
**Y Street Capital:**
Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)