FNRP

A World-Class 1031 Exchange

 

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 returns 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 compounds your overall investment’s value, giving 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 more

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 even more value than what you put in. 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 biggest 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 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
Historical Average Returns

23.14%*

Varies

9.5%**

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.

 

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.

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