FNRP Expands Cleveland Grip with Marc's Grocery Center Purchase

SOUTH EUCLID, OH – March 09, 2026 – First National Realty Partners (FNRP), a national private equity real estate firm, has deepened its investment in the Midwest with the acquisition of Marc's Grocery Center, a 63,317-square-foot retail property in South Euclid. The purchase underscores a powerful trend in commercial real estate: a flight to quality, necessity-based assets that have proven resilient against economic headwinds and the rise of e-commerce.

The acquisition is a key move in the firm's broader strategy, significantly bolstering its presence in the Cleveland metropolitan area and cementing its focus on grocery-anchored shopping centers, which continue to be a top-performing sector for investors.

A Strategic Consolidation in the Cleveland Market

This latest transaction is far from an isolated purchase; it represents a calculated step in a broader campaign to build a dominant portfolio in the Cleveland MSA. With the addition of Marc's Grocery Center, FNRP's regional holdings have swelled to over 600,000 square feet of grocery-anchored retail space. The center joins a cluster of four other FNRP-owned properties all within a ten-mile radius: Shore Center Plaza, Cedar Center South, Lee Harvard Shopping Center, and Shaker Heights Center.

This clustering strategy allows for significant operational efficiencies and creates a formidable presence in the region's necessity retail landscape. By concentrating assets, the firm can better manage properties, leverage market knowledge, and build strong tenant relationships across its portfolio. The approach aligns perfectly with the firm's stated investment philosophy.

"The acquisition of Marc’s Grocery Center is consistent with our strategy to add market-dominant assets to our portfolio," said Michael Hazinski, Chief Investment Officer at FNRP, in the company's announcement. He noted that the center, built in 2018, features high-performing tenants that thrive due to a notable lack of direct competition in the immediate area.

FNRP's model focuses on acquiring properties anchored by essential businesses, a strategy that has paid dividends in a volatile market. The firm's vertically integrated platform, which handles everything from acquisition to leasing and management in-house, allows it to create and sustain value for its accredited investors.

The Uncontested Anchor of South Euclid

For the community of South Euclid, Marc's Grocery Center is more than just another shopping plaza; it is a vital commercial hub. The property holds the unique distinction of being the only grocery-anchored shopping center in the city, making it an indispensable resource for local residents. This strategic position effectively insulates it from direct competition, ensuring a consistent flow of consumer traffic.

The center serves a dense and affluent demographic, with more than 117,000 residents living within a three-mile radius and average household incomes exceeding $113,000. Its location along Mayfield Road, a primary east-west thoroughfare, provides excellent visibility and accessibility for the thousands of commuters who pass by daily.

The property is anchored by Marc's, a well-established, Ohio-based discount grocery and drugstore chain with over 60 locations and a loyal customer base. The grocer's value-oriented model drives steady foot traffic, which in turn supports a robust lineup of inline tenants. These service-based retailers, including Starbucks, AT&T, NextDoor Urgent Care, Great Clips, and Subway, are largely insulated from online competition and cater directly to the daily needs of the community, creating a powerful one-stop-shop ecosystem.

Grocery-Anchored Retail: A Safe Harbor in Real Estate

The acquisition of Marc's Grocery Center is a microcosm of a much larger investment trend dominating the commercial real estate landscape. Grocery-anchored retail has emerged as a darling of the post-pandemic market, prized by institutional and private investors for its stability and defensive characteristics. While other retail sectors have struggled with vacancies and the shift to online shopping, these necessity-based centers have thrived.

Industry data reveals the sector's remarkable strength. Even with the growth of online grocery ordering, U.S. Census Bureau data shows that the overwhelming majority of grocery sales—approximately 97%—still occur in physical stores. This durable consumer habit makes grocery stores one of the most reliable anchors in all of retail. As of late 2024, vacancy rates in grocery-anchored centers nationwide stood at a historically low 3.5%, leading to the highest annual rent growth among all retail subtypes.

Investor demand has surged accordingly, with acquisition volumes reaching a record $14.7 billion in 2022 and remaining strong since. These assets are seen as a hedge against inflation and a source of stable cash flow, outperforming other retail formats during economic downturns. The consistent foot traffic generated by the grocery anchor creates a symbiotic relationship with smaller, service-oriented tenants, further enhancing the property's overall value and stability.

The Deal and Its Players

The transaction was facilitated by some of the top names in the commercial real estate industry. The seller was represented by Erin Patton of Marcus & Millichap's Institutional Property Advisors (IPA) division. Patton is a founding member of the highly successful Patton | Wiles | Fuller Group and leads IPA's Midwest Retail division. With a track record of over 440 transactions totaling more than $1.7 billion, her involvement signals the institutional quality of the asset and the significance of the deal within the regional market.

By securing this property, FNRP not only acquires a high-performing asset but also reinforces its thesis that well-located, necessity-driven retail is a cornerstone of a resilient investment portfolio. This move demonstrates confidence in both the Cleveland market and the enduring power of the neighborhood shopping center in American life.