Finding a suitable commercial real estate investment opportunity presents a unique challenge. On one hand, there is no shortage of available properties. On the other hand, we aren’t looking for any deal, we are looking for the right deal and we will leave no stone unturned to find it.
First National Realty Partners utilizes a volume-based approach to find the best possible commercial real estate opportunities in the United States. To do this, we cast a wide net to generate deal flow and use proprietary technology to subject each opportunity to a rigorous set of investment criteria. This approach to deal filtering is unique to FNRP and we call it the Dragnet Acquisitions Model.
The Dragnet Acquisitions Model is a technology-based, high-volume deal filter that allows FNRP to “drag” our deal “net” across the entire country in order to analyze a significant amount of deals. The logic behind this approach follows the law of large numbers. The more deals we can look at, the greater the chance we will find an opportunity that meets our stringent criteria.
Once in our deal net, proprietary technology allows us to analyze hundreds of data points across thousands of deals to uncover those that meet our investment objectives. For example, we look for grocery-anchored retail centers that are the number one or two center in a submarket, with the number one or two grocer in that same submarket. Identifying properties with these characteristics is simple with our technology forward approach.
Our volume-based approach allows us to look at more deals faster and to filter out those that don’t meet our criteria. As a result, we can focus our resources on the remaining deals that do meet our criteria to finalize the acquisition.
What separates FNRP from other organizations – particularly in the deal sourcing process – is our people. We made a conscious decision to go out and find the best players for every single role in our company.
To fill our “Dragnet” with deals, our acquisitions team makes it a point to develop tremendous relationships with every single broker who touches our type of deal flow. We are on a first-name basis with all of them and we want them to know who we are. As a result of these relationships, we are the first to receive a phone call when they have a deal that meets our criteria.
When potential deals are combined with our best-in-class team and in-house technology systems, the result is an unparalleled ability to filter through a high volume of deals at a fast, sustainable pace.
While technology helps us quickly eliminate deals that don’t meet our criteria, there is still much work to be done on the deals that do. Therfore, we have developed a repeatable and scalable process to work through the key details that require a human touch. For example, our process includes the review of essential considerations like: how long are the leases, are the tenants known to FNRP, are tenant businesses complementary to each other, where does the center sit in the sub-market?
Our standardized process ensures that each deal receives the same level of scrutiny and is compliant with our robust risk management principles.a
We believe that limiting our focus to one market or working exclusively with one broker limits our opportunity to discover the most promising investment opportunities. With our Dragnet Acquisitions Model, we have the luxury of searching nationwide to “fill the top of the funnel” with a broad array of deals to find the one that is worthy of presenting to our investors.
Co-Founder & Managing Principal
“We made a very calculated decision to bring in the best of the best people in the real estate industry, in their specific disciplines, and then let them build process, procedure, and structure behind them…and that’s what’s going to carry us as we continue to push and add more square footage to the portfolio”