First National Realty Partners Review

First National Realty Partners Review

Are you ready to add some commercial real estate deals to your portfolio?

In this Review

  • First National Realty Partners Overview
  • Why Grocery-Anchored Real Estate?
  • Highlights of Investing with FNRP
  • Pros and Cons of First National Realty Partners
  • The Bottom Line

First National Realty Partners Overview

Founded in 2015, First National Realty Partners has a clear focus. They invest in grocery-anchored commercial real estate properties via crowdfunding with accredited investors.

You must meet at least one of the following criteria to be considered accredited.

  • Over $200,000 average annual earnings over the past 2 years ($300,000 for joint)
  • Over $1 million in net worth, excluding your primary home
  • Some businesses or institutions can invest as accredited under certain guidelines.
  • As of August 26, 2020, the SEC has opened up the accredited status to some financial professionals with defined experience and certifications. 

Each property they buy is owned by a separate entity. When you invest with FNRP, you will own a percentage of an LLC that owns the property. FNRP also owns a percentage of each property. FNRP is a private commercial real estate investment firm. FNRP is not a REIT.

First National Realty Partners requires a $50,000 minimum investment, and all investors must be accredited. FNRP should also be considered a long-term, illiquid investment. Most of their investment deals require that you stay fully invested for at least 3-5 years.  

In order to simplify its investment process, FNRP has broken it down into easy steps. The following are the steps you will need to take when investing through FNRP.

  • Find a deal: After filling out your profile, you can browse projects that are currently accepting new investors. The platform allows you to access detailed information with evidence of due diligence.
  • You should attend FNRP investment experts’ webinars to learn more about why a property was chosen and its benefits. You can ask any remaining questions about the investment during the webinar. 
  • FNRP allows you to make your allocations directly through your FNRP portal if you choose the investment opportunity after hearing about the property.
  • Collect quarterly distributions: After you invest, the hard work of managing and maintaining the commercial property is in FNRP’s hands.   

Follow up here with another review.  

Why Grocery-Anchored Real Estate?

First National Realty Partners has several reasons why they choose to invest primarily in grocery-anchored commercial real estate. First, this unique focus allows them to become experts in this one niche. They aren’t distracted by investing in single-family homes, apartment complexes, or office space. They work with many of the same players in the grocery real estate space, and they know what works and how to make profitable improvements. 

When you invest with FNRP, you aren’t dealing with rookies that are learning as they go. You are working with a professional company that was designed to produce distributions for all invested parties. 

Highlights of Investing with FNRP

FNRP takes a highly selective approach to investing. According to the company, for every 1,000 offers it considers, it usually chooses one property to invest in. It leverages its relationships with major nationwide brand connections to select investment opportunities that fit the firm’s standards. FNRP invests in high-value, premium real estate, which helps investors reduce volatility in their portfolios.

Some brands that FNRP commonly deals with include:

  • Publix
  • Kroger
  • Whole Foods
  • Walmart 
  • Lowe’s
  • McDonald’s
  • Starbucks

FNRP is a vertically integrated company, so instead of outsourcing core processes to third parties, it has taken the time to move all of these processes in-house. From accounting to property management, to legal processes to acquisitions, FNRP’s team handles all of these responsibilities independently. Management such as this is different from most private equity firms, which outsource at least a portion of these tasks. A vertical integration strategy is one of the reasons for FNRP’s success, as it allows deals to close fast while also making deals with nationwide brands. 

The First National Realty Partners Opportunity fund is also available, which guarantees you placement in their deals. Many of their deals would otherwise be taken quickly. For investors seeking a portfolio of high-quality tenants, this might be an excellent option to consider. 

Pros and Cons of First National Realty Partners

Pros:

  • High-quality commercial real estate deals
  • Tax advantages and 1031 Exchange 
  • Webinars and transparent meetings 
  • A qualified team of professionals founded FNRP
  • Investors receive quarterly distributions

Cons:

  • $50,000 minimum investment
  • Most deals are illiquid
  • Only accredited investors
  • Limited to grocery-anchored retail locations

The Bottom Line

First National Realty Partners is the perfect choice for accredited investors who seek institutional-quality investments with outstanding returns that are risk-adjusted. FNRP requires a high minimum investment, but for the quality of their investments, this is a great way to diversify your portfolio into commercial real estate.