First National Realty Partners Review 2024

An online crowdfunding platform providing accredited investors a way to receive quarterly cash flow through grocery-anchored commercial real estate properties.

First National Realty Partners (FNRP) offers institutional-quality real estate investments to a select market of accredited investors only. The company does offer some multi-family properties and office buildings as investment opportunities, but the primary focus of FNRP is unique within the industry: grocery-anchored retail and other essential needs-type properties. While the company’s website offers a good amount of information regarding real estate investing and deal-specific information, the lack of transparency regarding fees, liquidity, and high investment minimums may deter some investors. 

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Pros & Cons

Pros Explained

• Unique investing opportunities: First National Realty Partners focuses on commercial real estate investments designed for retail operations. Accredited investors who want to invest in necessity-based properties such as grocery and pharmacy stores may find FNRP a good fit for their portfolio.    
• Informational live webinars for each offering: FNRP stands out within the industry when it comes to offering webinars for each investment property. Investors can learn the details and ask questions of the investment committee during this session.1
• Uses Dragnet Acquisitions Model: FNRP uses this proprietary screening system to pool a large group of potential investments and then meticulously screen the deals, only considering the few that meet the company’s criteria.2

Cons Explained

• Only open to accredited investors: There are no investment options at FNRP for non-accredited investors at this time.
• High investment minimums: The minimum investment is $50,000, which may tie up more money in one investment than even high-net-worth accredited investors are looking to do. 
• Poor transparency: Information regarding fees, liquidity, and investment holding periods is not readily available to investors via the website. 

Company Overview

First National Realty Partners was founded in 2015 with the goal of offering institutional-quality real estate investments to accredited investors.3 Since the company’s inception, it’s been able to offer a 15.0% net internal rate of return (IRR) to investors.4 First National Realty Partners focuses on necessity-based, value-added investing. The heart of the company’s investing philosophy is straightforward: Food and shelter are consistent consumer expenditures, regardless of the economic environment. This makes the places where people live, work, and shop the type of investment properties that meet FNRP’s investing criteria.5

How Does First National Realty Partners Work?

FNRP created FNRP360, an in-house management and operating platform.8 This is unique within the industry because it combines functions that are ordinarily outsourced, such as accounting, property management, asset management, acquisitions, legal, and leasing, and brings them in-house. This has facilitated the rapid sharing of information and created a systematic process that guarantees that each deal receives the same measure of review and is compliant with the company’s risk management principles.2

FNRP has a four-step process for people who want to invest in real estate:9

1. Schedule a call.
2. Find a property to invest in.
3. Attend a deal webinar.
4. Collect profits.

While this may seem a bit simplistic, it truly is that easy. Potential investors can schedule a call with someone on the investor relations teams to help you decide if this is the right option. Investors can browse deals online to see location, property type, site plan, demographic information for the surrounding area, and more. If a specific deal piques an investor’s interest, they can then attend a webinar to obtain the precise details of the deal and even ask questions of the investment committee. After deciding to invest, dividends are distributed quarterly, starting in Q1.9

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Key Features

First National Realty Partners only offers investment opportunities to accredited investors who can fund a minimum investment of $50,000. Currently, it does not offer curated portfolios or funds. However, investors can customize their portfolio by choosing which properties they’d like to invest in. FNRP offers multi-family, office, and retail properties for investment.10 

Each property offering has a site plan and specific information about the anchor stores and other tenants in the property, location, and demographic data for the surrounding population—including growth and income.10 One key way that First National Realty Partners stands out within the industry is that for each offering, there is a webinar that potential investors can attend to hear about the property, as well as have the opportunity to ask questions directly of the investment committee.1

Investors with FNRP get quarterly dividend payouts. Starting the first quarter after closing, investors will receive dividends from the positive net cash flow generated by the asset.7 The company calculates a targeted average annual cash distribution of 6% to 9%, which is not eligible for automatic reinvestment.

Fees

First National Partners does not operate with a set fee schedule since fees vary from project to project. Fees can often include annual asset management fees, acquisition fees, disposition fees, and ongoing property management fees.

Transparency

FNRP does not have standard fees across the board for every investment opportunity, and fees vary from project to project. In addition, investing with FNRP does not provide liquidity, as no redemption options exist, leaving investors to hold the investment for the duration of the investment. Therefore, when it comes to fee and liquidity-related transparency, our research team found it difficult to find this information on the company’s website. When it comes to reporting, however, investors can obtain asset performance reports, lease revisions, and other asset-specific data.7

Liquidity

Investors with First National Realty Partners must be accredited investors. They must provide documentation showing assets in excess of $1 million and a two-year history of income over $200,000 ($300,000 combined income with a spouse).6  

FNRP currently has 60-plus assets held, adding up to over $2 billion of assets under management, and over 2,600 investors.11

There are no redemption options. All FNRP investments must be held for the entire investment period.

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Investment Selection

First National Realty Partners uses a proprietary process, the Dragnet Acquisitions Model, to select investment properties. This model starts by casting a wide net to identify potential investment properties all around the United States. Through the company’s process, each potential opportunity is then filtered through a methodical set of investment guidelines to identify the types of properties that the company is looking for:2

First National Realty Partners does offer a 1031 exchange, which allows investors to postpone the taxes on money earned from the sale of one investment property and reinvest them in another similar property.

Sectors and Domains

First National Realty Partners’ philosophy is centered around selecting properties to invest in where people “live, shop, work, and play.” In staying with this, the properties that FNRP chooses through their screening process tend to be in three areas:12

• Grocery-anchored retail: FNRP primarily looks for grocery-anchored retail shopping centers that are number one or two within that submarket, with the grocery store also being a major player in that same submarket.
• Multifamily: FNRP currently has a couple of multi-family apartment unit properties.
• Industrial commercial real estate: FNRP is currently offering one office building.

Educational Offerings 

First National Realty Partners offers a good amount of educational material on its website, with informational webinar links and a blog containing many articles relating to real estate investing and industry news. One thing that is seemingly missing from FNRP’s website, though, is a section that answers frequently asked questions. Many of the typical questions that investors may have regarding basic items, such as fees, investment terms, and redemption options, are not addressed on the website at all. 

Once someone has decided to invest, they have access to all information regarding their investment via an online portal. FNRP also has a service team that is accessible to investors for any questions that may arise. Investors can expect to receive the following communications from the company throughout the year regarding their investment:

• Quarterly reports providing updates on the previous financial performance as well as laying out anticipated future expectations
• K-1s sent annually to investors at the fund level
• Trial balances distributed to investors utilizing a 1031 exchange
• Notifications of any major positive or negative events that will have a material effect on their investment
• Leasing and cosmetic upgrades (capex) updates
• Information regarding how the company is handling current market conditions and trends in real time

Additionally, the company has an informational webinar for each offering, and potential investors have access to ask specific questions of the investing committee.1

FNRP also has a podcast with 14 episodes, called “The Private Equity Real Estate Podcast.”13 While there have not been any new episodes since 2021, the podcast offers general content explaining the nature of real estate crowdfunding and exploring its risks and rewards.

Customer Support 

FNRP offers customer service via phone, email, online form, or via social media. While there are no specific customer service hours listed on the website, investors can reach the corporate headquarters in New Jersey by calling one of two numbers listed:

• 866-761-3677
• 800-605-4966

Investors can also reach out via email (info@fnrpusa.com) or through the online form on the website’s contact page.14 FNRP also has a social media presence on Facebook and Instagram, allowing investors to message them on both platforms.

First National Realty Partners does not have any reviews on Trustpilot at this time.15 

The Bottom Line

First National Realty Partners offers a unique proprietary system for screening and selecting necessity-based, value-added real estate investments, with a track record of consistent returns to investors. However, the offerings are only open to high-net-worth accredited investors and the lack of website transparency regarding fees, liquidity, and high investment minimums make investing with FNRP suitable for the very savvy investor only.

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Why You Should Trust Us

Investopedia analyzed 19 real estate crowdfunding companies and scored each based on eight major categories and 38 criteria that are crucial in evaluating the offerings and usability of these platforms. We used this data to review each company for their fees, investment selection, transparency, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their needs. Investopedia launched in 1999 and has been helping readers find the best real estate crowdfunding platforms since 2020.

Is First National Realty Partners Legitimate? 

Yes. First National Realty Partners has been around since 2015. Since the company’s inception, it has been able to deliver investors a 15% net IRR and has had $100 million in total investor distributions. It currently has over $2 billion in assets under management, with over 2,600 investors.4

What Is First National Realty Partners?

First National Realty Partners is a private equity firm in the commercial real estate investment market. The company only accepts accredited investors for individual investment property offerings; it does not offer REITs or funds at this time.

What Is an Accredited Investor?

An accredited investor can be an individual or a business entity. This type of investor is allowed to trade securities that are not registered with financial authorities like the SEC. Because these investing opportunities are not registered, they may be riskier to the investors. To be classified as an accredited investor, one or more of the following criteria must be satisfied:

• Net worth of at least $1 million, excluding the value of a primary residence
• Annual individual income of $200,000 for the last two years, or $300,000 joint income with a spouse 
• Governance status
• Financial professional with Series 7, 65, or 82 license

Is First National Realty Partners Publicly Traded?

No, First National Realty Partners is a private equity firm, operating as a limited liability corporation.16 Investors looking to learn more about publicly traded real estate companies should visit the Investopedia Stock Market Simulator.  

What Is the Minimum Investment With First National Realty Partners?

The minimum investment with FNRP is $50,000. However, it’s important to note that this money will be locked up for the duration of the investment, which can be as long as three to five years.  

How We Review Real Estate Crowdfunding Platforms

To evaluate and review real estate crowdfunding platforms, Investopedia’s team of researchers, data collectors, and industry experts spent nearly two months conducting in-depth industry research, company survey data collection, and hands-on evaluations of 19 companies. We grouped the 38 criteria that we collected, like investment selection and minimums, holding periods, and curated portfolios, into eight categories. We then scored these criteria and weighted the categories to determine which real estate crowdfunding platforms are best for both accredited and non-accredited investors:

• Fees: 15%
• Account Services: 15%
• Investment Selection: 15%
• Liquidity: 12.5% 
• Transparency: 12.5%
• Sectors and Domains: 12.5%
• Customer Support and Usability: 10%
• Educational Offerings: 7.5%

Through this all-encompassing data collection and review process, Investopedia has provided you with an unbiased and thorough review of real estate crowdfunding platforms. Read our full process for more information on how we review real estate crowdfunding platforms.

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