V1 Archive Ch 5 - CST Orientation
CST Education Series
Created on September 18, 2024
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Transcript
Your Journey as a CST Member Investor
Next
5. Investing in the CST
10.
Start course
Orientation to the Community Stewardship Trust
1. Objectives
10. Next Moves to Get Involved
9. Challenges & Opportunities
8. CST and Governance
Index - Course Chapters
2. Why Now? The Present Context
3. Introducing Solidarity Economy
4. What is the Community Stewardship Trust (CST)?
5. Investing in the CST
6. Preview of the CST Investor Portal
7. CST and Land Development
5. Investing in the CST
A co-steward of the trust, voting on key decisions of the CST
A shareholder in a Public Benefit Corporation, also known as the CST
A co-owner of the trust, including all of the properties added to the CST
A co-investor in a unique, non-extractive community investment vehicle
Orientation to the Community Stewardship Trust
By becoming a CST member-investor, you are becoming...
Next
A co-innovator in a community real estate development and community wealth building enterprise
5. Investing in the CST
A co-steward of the trust, voting on key decisions of the CST
A shareholder in a Public Benefit Corporation, also known as the CST
A co-owner of the trust, including all of the properties added to the CST
A co-investor in a unique, non-extractive community investment vehicle
Orientation to the Community Stewardship Trust
By becoming a CST member-investor, you are becoming...
Next
A co-innovator in a community real estate development and community wealth building enterprise
A co-steward of the trust, voting on key decisions of the CST
A shareholder in a Public Benefit Corporation, also known as the CST
A co-owner of the trust, including all of the properties added to the CST
A co-investor in a unique, non-extractive community investment vehicle
By becoming a CST member-investor, you are becoming...
Next
A co-innovator in a community real estate development and community wealth building enterprise
A co-steward of the trust, voting on key decisions of the CST
A shareholder in a Public Benefit Corporation, also known as the CST
A co-owner of the trust, including all of the properties added to the CST
A co-investor in a unique, non-extractive community investment vehicle
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-steward of the trust, voting on key decisions of the CST
A shareholder in a Public Benefit Corporation, also known as the CST
A co-owner of the trust, including all of the properties added to the CST
A co-investor in a unique, non-extractive community investment vehicle
Next
By becoming a CST member-investor, you are becoming...
A co-innovator in a community real estate development and community wealth building enterprise
5. Investing in the CST
Tell us what excites you
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 co-investor in a unique, non-extractive community investment vehicle
A co-innovator in a community real estate development and community wealth building enterprise
A shareholder in a Public Benefit Corporation, also known as the CST
Orientation to the Community Stewardship Trust
What's most exciting to you? Becoming...
5. Investing in the CST
Next
Orientation to the Community Stewardship Trust
Next
5. Investing in the CST
Orientation to the Community Stewardship Trust
5. Investing in the CST
Reserves & Safeguards
CST Investor Education Courses
SEC-compliant Community Investor Portal to facilitate investment
Limitations, Appropriateness, Ethical Considerations
Two Investor Classes
Accessible Investment, Low Dollar Buy-in
Financial Returns
Voting Power
Quiz
Minimum Holding Period
Orientation to the Community Stewardship Trust
Features of CST Investment
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
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
The MURPH
Next
5. Investing in the CST
Orientation to the Community Stewardship Trust
CST Finance Diagram
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5. Investing in the CST
Orientation to the Community Stewardship Trust
Next
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.
5. Investing in the CST
Orientation to the Community Stewardship Trust
CST Hypothetical Budget
5. Investing in the CST
Orientation to the Community Stewardship Trust
Go to Chapter 6
Chapter Five Completed
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.
Ethical Considerations
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.
Limitations
- Financial returns may be more modest.
- No target returns.
- The success of projects depends on effective governance and community engagement.
- 24,000 SF Mixed-Use Development
- 18 Permanently Affordable Apartments
- Neighborhood Format Grocery Store
- 3 Commercial Kitchens
- Event space and Office spaces
918 Dill Ave
The CST shares will begin at $10 per share. Local residents can invest as low as $10 per month to become a community investor.
Accessible Investment, Low Dollar Buy-in
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
Class B Solidarity Investors
Class A Community Investors
Two Investor Classes
Earn at or below $81, 680 Minimum 2-year investment period Earn above $81,680 Minimum 5-year investment period
Minimum Holding Period
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.
Shares Reserve
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.
Reserves & Safeguards
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.
Let's VOTE➞
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.