FNRP

A World-Class 1031 Exchange

 

“The testimonials provided herein are from FNRP investors. Prospective investors are cautioned as to any inherent conflict of interest which may exist between the investors and FNRP as a result of this relationship. Further, their representations provided may not be representative of the experience of other investors. Any testimonials provided are no guarantee of future success and are the opinions of those persons, reflecting their experiences and beliefs. ”

What Is a 1031 Exchange?

A 1031 Exchange lets investors defer the taxes on capital gained from the sale of an investment property by reinvesting in another property of like-kind value. Essentially, this lets you postpone capital gains taxes by selling a property and then putting the proceeds of this sale towards a new investment that will continue to grow capital for you.

The Benefits of 1031 Exchange

Besides being able to defer capital gains tax, you have the opportunity to grow and surpass the returns generated from your initial property.  Even though you’ll eventually pay taxes on that property, a 1031 Exchange lets you build more wealth than you would have retained had you been required to pay capital return taxes. Therefore, this allows you to compound your overall investment’s value and can give you a much higher return. 1031 investors also experience:

  • Stronger returns
  • Increased cash flow
  • Further portfolio diversification 
  • Less dependence on volatile assets 
  • Portfolio insulation 
  • Additional tax benefits
  • And mor

Why 1031 Exchange into National Brand Grocery-Anchored CRE Properties?

At FNRP, we believe that when you engage in a 1031 Exchange, it should be a seamless and resilient investment process that ultimately creates more value than when you invested. What better way to accomplish this than with an exchange into national-brand grocery-anchored properties?


Grocery-anchored CRE offers multiple benefits due to the nature of their essential, daily needs products, including:

  • Long-term protection against inflation and market volatility
  • Tax benefits
  • Excellent risk-adjusted returns*
  • Fully passive asset management
 

Through our Tenant-Centric Value-Added Investing Strategy, our team has established relationships with the nation’s largest essential-needs brands from Kroger to Whole Foods, giving us superior insight into the best properties on and off-market. This also helps us with lease-up and other value-add opportunities that can increase your investment property’s returns.  

Grocers offer the perfect blend of stability and value-creation potential that other assets simply can’t compete with. Additionally, because these properties are Triple Net leased, the majority of building costs and expenses do not fall upon investors. 

Typical Real Estate Crowdfunding Platform

Public (traded) Real Estate Investment Trusts

Specializes in Grocery-Anchored
Consistent and Scaleable Returns
Vertically Integrated
Liquidity
Personalized Investment Approach

Typical Real Estate Crowdfunding Platform

Public (traded) Real Estate Investment Trusts

Specializes in Grocery-Anchored
Consistent and Scaleable Returns
Vertically Integrated
Liquidity
Personalized Investment Approach
Historical Average Returns

23.14%*

Varies

9.5%**

Specializes in Grocery-Anchored

Typical Real Estate Crowdfunding Platform

Public (traded) Real Estate Investment Trusts

Consistent and Scaleable Returns

Typical Real Estate Crowdfunding Platform

Public (traded) Real Estate Investment Trusts

Vertically Integrated

Typical Real Estate Crowdfunding Platform

Public (traded) Real Estate Investment Trusts

Liquidity

Typical Real Estate Crowdfunding Platform

Public (traded) Real Estate Investment Trusts

Personalized Investment Approach

Typical Real Estate Crowdfunding Platform

Public (traded) Real Estate Investment Trusts

Historical Average Returns

23.14%*

Typical Real Estate Crowdfunding Platform

Varies

Public (traded) Real Estate Investment Trusts

9.5%**

*As of Q2 2022. Past Performance is not a guarantee of future results. **Source: NARIET (total returns from 2010-2020 ).

How 1031 Exchanges Work

The 1031 exchange process is a multi-step process involving your private equity sponsor as well as a qualified intermediary to ensure that your replacement property meets 1031 criteria. FNRP is committed to helping you every step of the way. Here is a basic timeline of the 1031 exchange process:

  1. You initiate the sale of your current investment property 
  2. Engage a qualified intermediary BEFORE the sale (sale proceeds must go directly to them, this opens the acquisition escrow)
  3. Start exploring replacement properties to exchange into (we have several at all times)
  4. Officially select your replacement property within 45 days after selling the initial property
  5. The exchange must be completed within 180 days

Why Do a 1031 Exchange With FNRP?

For starters, we have a world-class team of in-house experts with proven effectiveness in every area of commercial real estate, and 1031 Exchange. FNRP has completed more than 100 successful 1031 exchanges with accredited investors, and is ready to help you move through the process as efficiently as possible.

 
“The testimonials provided herein are from FNRP investors. Prospective investors are cautioned as to any inherent conflict of interest which may exist between the investors and FNRP as a result of this relationship. Further, their representations provided may not be representative of the experience of other investors. Any testimonials provided are no guarantee of future success.”

Fully Supported, Stress-Free 1031 Exchange

Our team is committed to helping you through every aspect of the 1031 process, including legal and paperwork associated with the exchange. We can even direct you to fully accredited intermediaries we’re engaged with. Our industry-leading 1031 application platform will enable you to seamlessly complete the process with ease.

Fractional Ownership Through A Fully Passive Investment

By choosing FNRP as your private equity CRE sponsor, you get the benefits of fractional ownership in the 1031 Exchange. This means that you can sell your current property and exchange into a high-quality, professionally managed property without the tax consequences. Through our FNRP360 platform, the entire scope of your exchange property is handled fully in-house to ensure the highest level of asset management while giving you, the investor, a totally passive experience. You invest, we do the work!

Steady Property Pipeline

We understand how important it is to have different property options for investors based on their interests and comfort level. To accommodate this, we maintain a deep, fast-moving pipeline of deals that provides investors with multiple replacement property options. Our team is committed to working with you to identify the investment option that best aligns with your comfort level and goals.

Win. Win. Win.

FNRP’s 1031 Exchange Process

1

Easily identify a replacement property within 45 days of closing and then close on the replacement property within 180 days of closing.

2

FNRP will find and operate institutional-quality grocery-anchored properties that have been vetted through our robust investment criteria. You just choose which deal is for you. We can also connect you with qualified intermediaries that we previously

3

Enjoy your returns without any extraneous costs. You will not have to source your own financing for any debt in the exchange. Due to our FNRP 360 vertical integration, your exchange will be streamlined and far less stressful since it will be handled by industry-leading experts.

Win. Win. Win.

FNRP’s 1031 Exchange Process

  • Easily identify a replacement property within 45 days of closing and then close on the replacement property within 180 days of closing. 

 

  • FNRP will find and operate institutional-quality grocery-anchored properties that have been vetted through our robust investment criteria. You just choose which deal is for you. We can also connect you with qualified intermediaries that we previously engaged with.

 

  • Enjoy your returns without any extraneous costs. You will not have to source your own financing for any debt in the exchange. Due to our FNRP 360 vertical integration, your exchange will be streamlined and far less stressful since it will be handled by industry-leading experts.

Get Started with Your 1031 Exchange Right Now

To kick off your 1031 Exchange, register for a 1031 Exchange screening. Don’t worry, it’ll be brief and help us fully understand your investment interests and needs to ensure you have a quality 1031 experience. You can also begin browsing some of our open deals featured on our Deal Lobby page. During our screening, we will also give you a sneak peak at additional deals coming down our pipeline.

  1. Net IRR (Internal Rate of Return) is defined as the average annualized, compound rate of return using equity contributions and distributions as they occurred on specific dates during the investment period reflective of all fees charged and paid to First National Realty Partners, LLC and its affiliates and subsidiaries. Securities are only available to verified accredited investors who can bear the loss of their investment. Please contact FNRP for an explanation of how such numbers are calculated.
  2. Equity Multiple: the total distributions and remittances to equity investors divided by the total equity contributions from investors during the investment period. Equity Multiple is reflective of all fees charged and paid to First National Realty Partners, LLC and its affiliates and subsidiaries.
  3. Past performance may not be indicative of future results. An investment in commercial real estate is speculative and subject to risk, and there can be no assurance that the future performance of any specific investment, investment strategy or selection of a specific property as referenced in the information herein, will be profitable, equal any corresponding indicated historical performance level(s) or be suitable for your needs. Due to various factors, including changing market conditions, this content may not be reflective of current opinions or positions.
  4. The testimonials provided herein are from FNRP investors. Prospective investors are cautioned as to any inherent conflict of interest which may exist between the investors and FNRP as a result of this relationship. Further, their representations provided may not be representative of the experience of other investors. Any testimonials provided are not a guarantee of future success.
  5. Cash distributions and any specific returns are not guaranteed. An investment in commercial real estate is subject to risk, including the risk that all of your investment may be lost. Any representations concerning investing in commercial real estate, including, without limitation, any representations as to stability, diversification, security, resistance to inflation and any other representations as to the merits of investing in commercial real estate reflect our belief concerning the representations and may or may not come to be realized. The ability to make distributions or the amount of distributions may be affected by factors such as debt and lender restrictions, future capital expenditure needs, and financial performance of the property.
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