For accredited investors, few alternative investments are as attractive as private equity real estate (PERE). With PERE, you get access to the mega-money real estate offerings like apartments, skyrises, and strip malls without needing a ton of capital or contract work to build and manage your own.
Instead, PEREs act as a REIT does for unaccredited investors. PERE funds let investors grab pieces, or equity, in significant real estate deals for capital gains and cash flow income returns from rents and leases.
Many PERE funds focus on a specific sector, like malls or office parks. One commercial real estate portfolio-builder focuses on groceries and similar consumer product retailers. If anything is “safe” in today’s rough economy, it’s groceries – everyone needs to eat, no matter how much inflation increases food costs. Grocery stores aren’t going anywhere, ever.
Enter: First National Realty Partners.
Not Accredited? Not for You
First National Realty manages a $1B portfolio of almost 50 grocery and consumer retail properties. Unfortunately, if you’re not an accredited investor, that portfolio and investment opportunity isn’t available to you,
If you’re the next Warren Buffett and want to know what blocks you need to check to be accredited, they include:
Financial Criteria:
- Net worth over $1 million, excluding the primary residence (individually or with spouse or partner).
- Income over $200,000 (individually) or $300,000 (with spouse or partner) in the prior two years and reasonably expects the same for the current year.
Professional Criteria:
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- Investment professionals in good standing holding the general securities representative license (Series 7), the investment adviser representative license (Series 65), or the private securities offerings representative license (Series 82).
- Directors, executive officers, or general partners (GP) of the company selling the securities (or of a GP of that company).
- Any “family client” of a “family office” qualifies as an accredited investor.
- For investments in a private fund, “knowledgeable employees” of the fund.
Individual Deals
When you invest in individual properties with First National, you’re called a “limited partner” (LP). As an LP, you get access to exclusive, rare, and lucrative deals that are as safe a bet as any in today’s real estate market. Pricing is not fixed but instead based on project or property. This means that you have the flexibility to do due diligence and invest in deals you’re most comfortable with.
That due diligence is easy, however. First National’s website contains everything you need to know about each property and individual deal. First National also hosts webinars to provide an overview and venue for questions to ensure you’re comfortable before committing capital.
What kind of Individual Deals are Available?
Since First National focuses on grocery and retail-anchored properties, they have a few requirements that drive their, and your, investment opportunities and options:
- Of course, the property needs to be grocery or retail based.
- The property needs to be worth $15M at a minimum – anything less isn’t worth the time and won’t return enough for investors.
- It is located in a growing primary or secondary market.
Since they are so stringent in their requirements, First National’s premium properties are in the top 0.1% of deals.
Opportunities Abound with the Opportunity Fund
This is where First National Realty sets itself apart from similar funds. For a minimum of $50,000, you get a diversified spread of fractional shares across the entire $1B portfolio.
This diversification means greater safety, and less risk, than investment in a single property. This is also an opportunity to capture unexpected massive gains, hence the Opportunity Fund.
Return Ranges
Depending on your individual deal or Opportunity Fund allocation, returns range but tend to outperform the market:
- 12% – 18% average annual realized return.
- Each investment targets a 12% – 18%+ IRR, so they set ambitious goals to reach the realized return.
- Targeted 8% annual cash distribution so that you can enjoy recurring, reliable income even as the capital appreciation compounds.
The Bottom Line
Like any investment, risks are omnipresent, and real estate is no different. A sluggish economy can drag down real estate, and secondary markets like housing can affect the whole sector. Luckily, First National is:
- Anchored in recession-resistant industries – grocery and core retail
- Diligent about tenants and minimizing default risk
This means that, in general, First National is a safe bet to grow your capital in any economic state. Today inflationary economy and bear market make First National a veritable treasure trove compared to other options. First National is a great chance to grow your wealth and beat the market if you’re an accredited investor.
Ready to go? Here are more details about your opportunities with First National Realty Partners.
