Ch 5 - CST Orientation

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5. Investing in the CST

Your Journey as a CST Community Steward

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What to Know Before Investing: Risks & Protections

All stewards should be aware that all investments carry inherent risks, including the possibility of partial or total loss of capital. An investment in the SWATS Community Stewardship PBC or (CST) is no exception. Potential stewards should only consider purchasing shares after considering carefully the risks associated with the investment. Prospective stewards should carefully review the “Risk Factors” section in CST Offering Circular, that will be available on the CST Steward Portal when it opens, before making any investment decision.

While the CST has taken measures to prioritize community steward protection—including structuring investments so that community stewards are first in line for repayment—there is no guarantee of return. Philanthropic partners have agreed to subordinate their returns to help reduce risk to community stewards, but returns are dependent on property cash flows and appreciation and are not guaranteed.

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By becoming a CST community steward you are becoming...

An innovator in a community real estate development and community wealth building enterprise

An investor in a unique, non-extractive community investment vehicle

A steward of the Trust, voting on key decisions of the CST

An 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

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CST Investment Features

Here's The Guild's Avery Ebron to introduce the key features of the CST Investment you should know.

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CST Investment Features

Minimum Holding Period

Voting Power

Financial Returns

Accessible Investment, Low-Cost Buy-in

Two "Classes" of Steward

Limitations, Appropriateness, Ethical Considerations

SEC-Compliant Portal to Facilitate Investment

CST Steward Education Courses

Reserves & Safeguards

Quiz

QUIZ

GG and JJ are neighbors who are becoming CST community stewards. GG makes $42k annually as a nurse tech. GG wants to invest at the level of $25 per month. JJ earns a $98k salary for a film editing company. JJ wants to invest $50 per month.

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QUIZ

GG and JJ are neighbors who are becoming CST community stewards. GG makes $42k annually as a nurse tech. GG wants to invest at the level of $25 per month. JJ earns a $98k salary for a film editing company. JJ wants to invest $50 per month.

Next

QUIZ

GG and JJ are neighbors who are becoming CST community stewards. GG makes $42k annually as a nurse tech. GG wants to invest at the level of $25 per month. JJ earns a $98k salary for a film editing company. JJ wants to invest $50 per month.

Next

QUIZ

GG and JJ are neighbors who are becoming CST community stewards. GG makes $42k annually as a nurse tech. GG wants to invest at the level of $25 per month. JJ earns a $98k salary for a film editing company. JJ wants to invest $50 per month.

Next

CST

Finance

CST Finance Diagram

Diagram

The MURPH

^ Avery walks you through the CST finance diagram.

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Remember to take breaks to move your body and stay hydrated. 🫶🏾

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How the CST Works

How the CST Works

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$$$

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 (in thousands of dollars). For illustrative purposes only.

Property

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Chapter Five Check

Did you review all pages and complete all interactive elements in Chapter One?

Yes!

We will continue exploring what it means to invest in the CST in future chapters. For more on "Investing in the CST" see the CST FAQ

Chapter Five Completed

Go to Chapter 6

Back to CST Investment Portal

Orientation to the Community Stewardship Trust

Index - Course Chapters

Technology Intro

6. Overview of the CST Investment Portal

1. Objectives

7. CST and Land Development

2. Why Now? The Present Context

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

Back to CST Investment Portal

(Re)Start Chapter 5

Course Guide

CST FAQ

© 2025 by David Ferris and The Guild CC BY-NC-SA 4.0

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.
• Shared ownership.

918 Dill Ave

• 24,000-square-foot mixed-use development
• 18 permanently affordable apartments
• Neighborhood-focused grocery store
• 3 commercial kitchens
• Event and office space

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 steward.

Financial Returns

• Stewards 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.
• Stewards can realize their returns by cashing out their CST shares.

890 Dill Ave.

In December 2023, The Guild acquired 890 Dill Ave. through an investment from our Groundcover capital fund. This was an important milestone in our “block strategy” approach: It gave the Community Stewardship Trust two commercial and mixed-use buildings, plus the open parcels at the critical intersection of Dill Avenue and Sylvan Road. We are currently in the process of incorporating feedback from co-design sessions and key community stakeholders into our plans for the space.

CST Steward Education

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

Minimum Holding Period

Two Steward "Classes"

The CST is a medium to longer term investment. Community stewards will be required to hold their funds for a minimum of 5 years. The CST raises and maintains a cash liquidity reserve that allows residents who earn lower incomes can redeem (cash out) their shares before the minimum holding period. This way the CST functions more like a savings account.

Class A Community Stewards

Household earns at or below $86,000 Minimum 5-year investment period, with priority for redeeming shares after 2 years Household earns above $86,000 Minimum 5-year investment period

Class B Solidarity Stewards

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-square-foot building in Atlanta’s historic West End community. Like many communities with Black cultural roots and institutions, the West End is rapidly gentrifying and losing communally held spaces. The MURPH will build on the community’s abundant legacy and offer affordable, accessible, and well-equipped meeting space. The space includes 10 individual offices, a conference room, a classroom, a large common area, a laundry room, a full kitchen and a 3,400-square-foot warehouse.

Voting Power

Community stewards 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 stewards will have equal voting power, or in other words, it will be 1 person 1 vote.

Let's VOTE➞