V1 Archive Ch 5 - CST Orientation

5. Investing in the CST

Your Journey as a CST Member Investor

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Orientation to the Community Stewardship Trust

Index - Course Chapters

6. Preview of the CST Investor Portal

1. Objectives

2. Why Now? The Present Context

7. CST and Land Development

3. Introducing Solidarity Economy

8. CST and Governance

4. What is the Community Stewardship Trust (CST)?

9. Challenges & Opportunities

10. Next Moves to Get Involved

5. Investing in the CST

Start course

10.

5. Investing in the CST

Orientation to the Community Stewardship Trust

By becoming a CST member-investor, you are becoming...

A co-innovator in a community real estate development and community wealth building enterprise

A co-investor in a unique, non-extractive community investment vehicle

A co-steward of the trust, voting on key decisions of the CST

A co-owner of the trust, including all of the properties added to the CST

A shareholder in a Public Benefit Corporation, also known as the CST

Next

5. Investing in the CST

Orientation to the Community Stewardship Trust

By becoming a CST member-investor, you are becoming...

A co-innovator in a community real estate development and community wealth building enterprise

A co-investor in a unique, non-extractive community investment vehicle

A co-steward of the trust, voting on key decisions of the CST

A co-owner of the trust, including all of the properties added to the CST

A shareholder in a Public Benefit Corporation, also known as the CST

Next

By becoming a CST member-investor, you are becoming...

A co-innovator in a community real estate development and community wealth building enterprise

A co-investor in a unique, non-extractive community investment vehicle

A co-steward of the trust, voting on key decisions of the CST

A co-owner of the trust, including all of the properties added to the CST

A shareholder in a Public Benefit Corporation, also known as the CST

Next

By becoming a CST member-investor, you are becoming...

A co-innovator in a community real estate development and community wealth building enterprise

A co-investor in a unique, non-extractive community investment vehicle

A co-steward of the trust, voting on key decisions of the CST

A co-owner of the trust, including all of the properties added to the CST

A shareholder in a Public Benefit Corporation, also known as the CST

Next

By becoming a CST member-investor, you are becoming...

A co-innovator in a community real estate development and community wealth building enterprise

A co-investor in a unique, non-extractive community investment vehicle

A co-steward of the trust, voting on key decisions of the CST

A co-owner of the trust, including all of the properties added to the CST

A shareholder in a Public Benefit Corporation, also known as the CST

Next

5. Investing in the CST

Orientation to the Community Stewardship Trust

What's most exciting to you? Becoming...

A shareholder in a Public Benefit Corporation, also known as the CST

A co-innovator in a community real estate development and community wealth building enterprise

A co-investor in a unique, non-extractive community investment vehicle

A co-owner of the trust, including all of the properties added to the CST

A co-steward of the trust, voting on key decisions of the CST

Tell us what excites you

5. Investing in the CST

Orientation to the Community Stewardship Trust

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5. Investing in the CST

Orientation to the Community Stewardship Trust

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5. Investing in the CST

Orientation to the Community Stewardship Trust

Features of CST Investment

Minimum Holding Period

Voting Power

Financial Returns

Accessible Investment, Low Dollar Buy-in

Two Investor Classes

Limitations, Appropriateness, Ethical Considerations

SEC-compliant Community Investor Portal to facilitate investment

CST Investor Education Courses

Reserves & Safeguards

Quiz

5. Investing in the CST

Orientation to the Community Stewardship Trust

QUIZ

GG and JJ are neighbors who are becoming investors in the CST. GG makes $42k annually as a nurse tech. GG wants to invest at the level of $25 per month. JJ earns a $90k salary for a film editing company. JJ wants to invest $50 per month.

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5. Investing in the CST

Orientation to the Community Stewardship Trust

QUIZ

GG and JJ are neighbors who are becoming investors in the CST. GG makes $42k annually as a nurse tech. GG wants to invest at the level of $25 per month. JJ earns a $90k salary for a film editing company. JJ wants to invest $50 per month.

Next

5. Investing in the CST

Orientation to the Community Stewardship Trust

QUIZ

GG and JJ are neighbors who are becoming investors in the CST. GG makes $42k annually as a nurse tech. GG wants to invest at the level of $25 per month. JJ earns a $90k salary for a film editing company. JJ wants to invest $50 per month.

Next

5. Investing in the CST

Orientation to the Community Stewardship Trust

QUIZ

GG and JJ are neighbors who are becoming investors in the CST. GG makes $42k annually as a nurse tech. GG wants to invest at the level of $25 per month. JJ earns a $90k salary for a film editing company. JJ wants to invest $50 per month.

Next

5. Investing in the CST

Orientation to the Community Stewardship Trust

CST Finance Diagram

The MURPH

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5. Investing in the CST

Orientation to the Community Stewardship Trust

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5. Investing in the CST

Orientation to the Community Stewardship Trust

CST Hypothetical Budget

Here's a diagram of potential (hypothetical!) income streams and expenses for the Community Stewardship Trust in three years when two properties have been added and are generating rental income.

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5. Investing in the CST

Orientation to the Community Stewardship Trust

Chapter Five Completed

Go to Chapter 6

Ethical Considerations

Limitations

Appropriateness

• Especially for long-term locals who care about the neighborhood and community well-being and are willing to engage in governance.
• Suitable for socially conscious investors with a long-term perspective and a willingness to accept modest financial returns.

• Financial returns may be more modest.
• No target returns.
• The success of projects depends on effective governance and community engagement.

This model assigns value to:

• Being able to keep rent low,
• Taking housing and land out of speculation,
• Allowing tenants to remain,
• Neighborhood stability,
• Community governance, and
• Shared ownership.

918 Dill Ave

• 24,000 SF Mixed-Use Development
• 18 Permanently Affordable Apartments
• Neighborhood Format Grocery Store
• 3 Commercial Kitchens
• Event space and Office spaces

Accessible Investment, Low Dollar Buy-in

The CST shares will begin at $10 per share. Local residents can invest as low as $10 per month to become a community investor.

Financial Returns

• Investors gain short-term returns when CST votes to use surplus cash flow to issue dividends.
• As properties appreciate over time and pay down debt, CST shares appreciate in value.
• Investors can realize their returns by cashing out their CST shares.

890 Dill Ave.

In December 2023, The Guild successfully acquired 890 Dill Ave, via investment from The Guild's Groundcover Fund. This milestone is an amazing step toward our “block strategy” approach, giving the Community Stewardship Trust two commercial and mixed-use buildings, plus the open parcels at this critical intersection of Dill Ave. and Sylvan Rd. We are currently in the process of incorporating feedback from past codesign sessions and key community stakeholders into the plans for the space.

CST Investor Education

• Solidarity Economy
• Community-owned real estate
• Finance and community investment
• Community Governance & Stewardship

Minimum Holding Period

Two Investor Classes

The CST is a medium to longer term investment. Community investors will be required to hold their funds for a minimum of 2-5 years. The CST raises and maintains a cash liquidity reserve that enables residents earning lower incomes the ability to redeem (cash out) their shares prior to the minimum holding period, so that it may function more similarly to a savings account.

Class A Community Investors

Earn at or below $81, 680 Minimum 2-year investment period Earn above $81,680 Minimum 5-year investment period

Class B Solidarity Investors

Reserves & Safeguards

Cash Liquidity Reserve

Enables investors to cash out before minimum investment period expires, so CST can function more like a savings account (Class A Investors have priority) For every $1 of equity shares outstanding, we reserve $1 of equity inside the CST.

Shares Reserve

The MURPH

The MURPH is 9,700 sq. ft. building in Atlanta’s historic West End community. Like many communities with deep Black cultural roots and institutions, the West End is experiencing rapid gentrification and loss of communally held spaces. The MURPH will build on the community’s abundant legacy and offer affordable, accessible and well equipped meeting space. Our space hosts ten individual offices, one conference room, one classroom, a large common area, laundry room, full kitchen and a 3,400 sq. ft. warehouse.

Voting Power

Community investors will have the ability to vote on key decisions such as future tenants, electing board members, or how to allocate surplus revenue for community initiatives or dividends. In these decisions, community investors will have equal voting power, or in other words, it will be 1 person 1 vote.

Let's VOTE➞