Mogul Ben Mallah reveals his ‘essential’ US portfolio that he states Amazon ‘can’t hurt’

Unlike office buildings or other commercial properties, necessity-based real estate caters to the everyday needs of local communities.

Properties anchored by grocery stores and essential services often attract long-term tenants, creating more predictable and reliable cash flow for investors.

Once reserved for institutional and elite investors, this sector has become increasingly accessible to a broader audience.

For instance, platforms like First National Realty Partners (FNRP) offer accredited investors access to grocery-anchored properties without the hassle of finding and managing deals themselves — starting with a minimum investment of only $50,000.

FNRP properties are leased to national brands like Whole Foods, Kroger, and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, investors enjoy stable cash flow without bearing the burden of tenant-related costs.

Another option for grocery-focused investments is real estate investment trusts (REITs). Slate Grocery REIT (SRRTF), for example, holds a portfolio of 116 properties, with 95% anchored by grocery stores.

These REITs provide a hands-off way to invest in this sector while benefiting from diversified exposure to essential real estate.

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Housing is essential, too

Housing, much like grocery stores, is a cornerstone of necessity real estate. No matter the state of the economy, people will always need a place to live, making residential properties one of the most dependable and enduring investments in real estate.

The U.S. is currently facing a significant housing shortage, intensifying the demand for residential properties.

An analysis by Zillow published in June 2024 estimated the housing shortage to be 4.5 million homes as of 2022.

Federal Reserve Chairman Jerome Powell addressed the crisis in September 2024, pointing to the core issue: “The real issue with housing is that we have had, and are on track to continue to have, not enough housing.”

For potential investors, the housing supply gap presents a unique opportunity. While high home prices and elevated mortgage rates have made buying a home more challenging for individuals, you don’t need to purchase a property outright to invest in residential real estate.

Crowdfunding platforms like Arrived have simplified the process, enabling everyday investors to own shares in rental properties without the large down payments or management headaches typically associated with owning real estate.

Through Arrived, you can invest in shares of rental homes without worrying about maintenance or tenant issues. Simply browse a curated selection of homes that have been vetted for their appreciation and income potential.

Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving rental income deposits from your investment.

For accredited investors, Homeshares gives access to the $36 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors.

With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.

With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.

REITs provide another avenue for those looking to gain exposure to this essential market. Companies like American Homes 4 Rent (AMH) focus on single-family rental homes, while Equity Residential (EQR) targets multifamily housing in high-demand urban areas. These companies can serve as a starting point for further research.