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irst National Realty Partners, a Red Bank-based real estate investment firm founded in 2015, has amassed over 60 commercial properties nationwide. The company claims to offer everyday investors the opportunity to own shares in previously inaccessible real estate assets, promising annual returns of up to 9%. However, a lawsuit filed by seven investors alleges that the firm defrauded them out of $12 million.

    According to the complaint, First National Realty Partners used a sophisticated telemarketing operation to sign up investors, who were promised quarterly distributions amounting to an annual return of 6% to 9%. Instead, their returns fell short of expectations. The lawsuit alleges that the company overvalued properties, pocketed the difference between what investors paid and what it actually cost, and took excessive management fees.

    First National Realty Partners owns a diverse portfolio of commercial properties, including shopping centers anchored by grocery stores like Waretown Town Center in Ocean County, which it purchased for $14.2 million last September. The company claims to have over $2 billion in assets. However, the lawsuit seeks to recover more than $12 million from the firm and its owners, Anthony Grosso and Christopher Palermo.

    The company has denied the allegations, calling them "frivolous" and stating that it will vigorously defend itself. Attorneys for First National Realty Partners said they are confident that the claims will be refuted, citing the company's strong relationships with investors.