Full First National Realty Partners Review
First National Realty Partners offers a unique spin on investment in retail commercial property. Each institutional-quality offering features a retail space (i.e. a mini-mall) anchored by a nationally-recognized brand, like ShopRite, Walmart, Dollar Tree, and Aldi.
In addition, each property is valued below replacement cost. This allows First National Realty Partners to create exit strategies that involve a sale or refinance in a 3 to 5-year period. As a result, investors receive both quarterly cash flow and capital appreciation.
As an alternative, investors may participate in an Opportunity Fund. This fund has a $50K minimum investment and provides for guaranteed placement in First National Realty Partners’ offerings.
First National Realty Partners At A Glance
Fees: $50,000 minimum investment per deal. .5% to 1.5% Asset Management Fee, determined on a per-deal basis. Other fees may apply.
Minimum Balance: $50,000 for the Opportunity Fund
Minimum Investment: $50,000
Account Fees: Determined on a per-deal basis
Redemption Options: Non-liquid. Investors
Customer Support: Direct phone support with a team of investment specialists, M-F 9am to 5pm EST
Transparency: Comprehensive due diligence packet on each offering is available directly through their website.
What Is First National Realty Partners?
First National Realty Partners is one of the fastest-growing commercial real estate private equity firms in the country. Its mission is to provide accredited investors with the top .1% of value-add commercial properties with nationally-recognized anchor tenants in both primary and secondary markets across the country.
Each investment opportunity is thoroughly vetted by their in-house team for its potential to provide both cash flow and capital appreciation. Appreciation is created either through renovations to the property, providing new upper-tier tenants, or negotiating long-term lease deals with anchor tenants.
Investors participate as limited partners in individual property offerings that are featured on First National Realty Partners’ comprehensive and easy-to-navigate website. Because of this format, partners receive a K-1 for their taxes, which means they also receive a tax deduction for the depreciation of the property.
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How First National Realty Partners Started
Based in Red Bank, New Jersey, First National Realty Partners was co-founded by Anthony Grosso and Christopher Palermo in 2015. Jared Feldman, the firm’s Chief Investment Officer, deployed more than $100M in equity capital during his years of consultancy before joining the firm.
Since 2015, First National Realty Partners has grown to 1,445 investors, holding over $914M in commercial assets, and averaging a historical 12% to 18% return.
First National Realty Partners is not a REIT. You do not purchase shares in a portfolio of investments. Rather, their model is to offer fractional investment in individual retail commercial properties, anchored by a nationally-recognized tenant.
Better still, First National Realty Partners has carved out a niche by finding only under-valued assets, or assets with large upside potential. This allows them to offer investors both passive quarterly income and capital appreciation.
First National Realty Partners Investment Options
First National Realty Partners provides co-investment as a limited partner in one of their retail commercial property offerings. These properties are anchored by a large, nationally-known store, such as Win-Dixie, Wal-Mart, or Kohls, and also has upside potential through appreciation or renovation.
FNRP also offers an Opportunity Fund. For $50,000, the fund provides investors guaranteed placement in one of the First National Realty Partners’ offerings.
First National Realty Partners Pricing
Participation in a limited partnership is priced on a per-deal basis and is offered to accredited investors only. To see offerings and obtain information on pricing, visit First National Realty Partners’ website.
First National Realty Partners Portfolios
Currently, First National Realty Partners maintains over $900M is commercial property assets. To see previous deals and access current offerings, sign up on First National Realty Partners’ website.
First National Realty Partners Performance
FNRP provides both quarterly cash flow and capital appreciation. Each investment targets a 12% to 18+% IRR, with a 8% targeted average annual cash distribution. Individual results vary.
Strengths, Weaknesses, and Exciting Possibilities
By focusing on under-valued properties with high-quality anchor tenants, First National Realty Partners can create some exciting advantages for their limited partners.
For example, in a recent investment, First National Realty Partners acquired a property, then re-negotiated a 5-year lease with CVS. This allowed First National Realty Partners to refinance the property within two years of acquisition and pay back the initial investment of the partners.
The net result? Partners could reinvest in a second opportunity with their initial capital, while still enjoying cash flow from their first investment.
On the potential downside, the investments offer no liquidity and no diversity. You invest in a single property offering along with numerous other limited partners, then ride the investment out to its eventual conclusion. Though the returns are extremely attractive, this is not an investment for someone seeking the diversity or liquidity of a REIT.
First National Realty Partners FAQs
Q: Can I invest through my IRA?
A: Yes, self-directed IRAs are welcome.
Q: When are distributions paid?
A: Distributions of positive cash flow are paid quarterly.
Q: What updates, reports, and tax forms can I expect?
A: Full financial reports are created and distributed every quarter. Updates on leasing go out every month. By March 15th of each year, you’ll also receive a form K-1 for your taxes.
Check the First National Realty Partners website for a comprehensive list of FAQs
First National Realty Partners has found an excellent niche in the commercial real estate investment space, allowing accredited investors to participate in the kinds of deals normally reserved for institutional investors.
The website makes it easy to understand each property offering, and perform due diligence with a few mouse clicks. The partners at FNRP really know how to take complicated transactions and distill them into simple terms.
We also like the hands-on approach that FNRP takes. Once the property is acquired, that’s when the real work begins. The FNRP team focuses on renovations, negotiating leases with current tenants, and bringing new, established tenants into the properties. This creates greater appreciation.
Though it does not provide the immediate diversity and liquidity of a REIT, an investor can find diversification with First National Realty Partners through investing in multiple properties. The offerings are not only scattered across the U.S., but by investing in properties with different anchor tenants, there’s little or no correlation between performance with each investment.
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First National Realty Partners offers the top .1% of all retail-based, commercial investment opportunities you can find without being an institutional investor yourself. We would have liked to see more disclosure about the fees upfront to make it a little more convenient for research, but the offerings, the platform, the customer service, and especially the returns are all top of the line.