The Accretiv Hybrid Fund 2 has been established to take advantage of the dislocation of the market caused by an extended period of high interest rates, a liquidity squeeze, cost of new construction throttling new supply, and an accelerated urgency to “reindustrialise” the United States. Our hypothesis is that rate cuts will begin towards the later part of 2025 and over 2026, creating a generational opportunity to ride the wave. It’s a perfect storm!

This is our latest offering and will replace AccretivMED Real Estate Fund 1 as we close our healthcare portfolio to new investments and prepare it for exit. The AccretivMED fund has a value at cost of just below $200 million and has never missed a quarterly distribution, averaging over 5% annualised. 

The mandate to our acquisition team is to find low-maintenance, industrial buildings in specific areas, with strong leases and profitable tenants that we can acquire at an average capitalisation rate exceeding 8%. Our offering should fit well with investors looking for regular income, whilst still benefiting from the strong fundamentals that we expect will power capital growth and generate exciting IRRs.

We have identified 3 buildings that will make up the Foundation of this Industrial portfolio and present them separately on their own merits. We are so confident in our underwriting that we are offering Limited Preferred Equity to early bird investors, with an 11% IRR Pref. This offering is only available to Accredited investors.

Today, we present 1441 Branding Avenue - a fully leased 48,533 square foot flex-industrial building in Downers Grove, Illinois. The Property is home to a diverse tenant base, including LPMS USA, BTI Communications Group, Affiliated Customer Service Inc., and Advocate Home Health Services. These tenants represent a broad spectrum of industries such as consumer electronics, information technology, fire detection solutions, and healthcare. Both Affiliated and LPMS USA utilize the Property as their company headquarters. Notably, Advocate and Affiliated – representing a combined 50% of the gross leasable area – have been tenants for over 25 years. With a weighted average lease term of nearly 5 years, the Property delivers consistent and predictable cash flow.

The previous owners have demonstrated a proactive commitment to maintaining and enhancing the buildings, investing over $770,000 in capital improvements since 2020. Upgrades include a complete roof replacement, parking lot milling and repaving, tuckpointing, reconstructed concrete walkways and entrances, fire hydrant replacement, regrading, landscaping enhancements, and new paint. In 2025, several HVAC units were also replaced, further boosting building efficiency and tenant comfort.

The building features highly functional flex spaces that appeal to a wide range of businesses, with centralized common dock access enhancing logistics. Spaces are efficiently configured, with no unit larger than 20,000 square feet and three suites under 10,000 square feet - aligning well with today’s leasing market.

Great Location

The property is strategically located in Downers Grove, a thriving industrial hub within DuPage County. Positioned just 20 miles west of Chicago, it offers seamless connectivity to major transportation networks. This premier location combines excellent transport links, a robust local economy, and long-term tenant appeal, making it ideal for industrial and commercial operations.
 

Industrial Building
The property comprises a total of 48,533 square feet and is currently 100% leased to a mix of long-term industrial tenants.

Returns
Forecast quarterly distribution of 11%  annualized with at a targeted IRR range of between 13% - 15%.

Purchase
The total acquisition cost was $6,145,000 of which $147,480 was provided for 3RD party placement costs.

Funding
The 2,558,765 equity includes 1,476,971 from Accretiv (Co-GP and Accretiv Hybrid Fund 2).

Holding Period
The investment period is planned for 5 years although this may be lengthened by the manager depending on performance and market conditions.