Brand Story – Our mutual fund model enables first-time investors to build wealth and strengthen their communities.
Please share this article!
At the end of each month, after paying rent, utilities, childcare, and other necessities, you’ll have a little extra cash to do something special, like a family pizza party or make extra student loan payments. Imagine what’s left.
This is the reality for many Oregon families who find it simply impossible to build long-term wealth.
Now, imagine you are invited to invest that extra cash in commercial real estate in your neighborhood. Why not consider it?
A new project in Southeast Portland shows that real estate ownership and wealth creation is within reach for more Oregonians, especially those who have historically been left out of such investment opportunities.
Plaza 122 is a 29,000 square foot commercial property operated by Community Investment Trust (CIT). Born out of Mercy Corps, CIT provides an opportunity for community members to collectively own real estate. For monthly investments of just $10 to $100, residents in four surrounding ZIP codes can invest in Plaza 122 and gain valuable insight into financial planning and wealth creation while shaping the future of their communities. I can.
“Having wealth that can be passed down to your children and your children’s children feels like a dream that was never achieved in the past. It was just the thought process of making money. And now it’s like, ‘No, we have an opportunity to build wealth, and this is how you do it,'” said the investor and CIT training facilitator. says Jennifer Hardnett, who is also the board chair. “I think Community Investment Trusts and their curriculum really helped me see that wealth is achievable.”
Over the past five years, Plaza 122 has proven its strength, adding more than 300 retail investors in the neighborhood. More than 60% of his community investors are women, Black, Indigenous, and people of color (BIPOC), low-income, and first-time investors. Resources and education for potential Plaza 122 shareholders will be provided in Arabic, Vietnamese, Russian, Spanish and English.
The CIT model is the first of its kind in the nation and not only provides annual and long-term return on investment, but also fosters citizen participation.
The facility can accommodate up to 30 tenants, a diverse group of small businesses and social service nonprofits. CIT investors like to support and shop with these tenants because they have ownership of the property. CIT is committed to establishing a vibrant food cart pod and community space at Plaza 122 to increase returns for investors and opportunities for small businesses.
“As a long-term wealth creation tool utilized by the majority of first-time investors, CIT is the gateway to building financial resilience for community members. In the five years since East Portland CIT was founded, over 75,000 Dividends in excess of US$ 1,000 were distributed to nearby investors,” said CIT Operations Director Sven Gachev.
Investments in CIT come with a guaranteed minimum return of 2%. Impressively, the average annual return reached 7.9%, with the stock price increasing from $10 to $19.02 over five years. Owning real estate involves risk. However, at Plaza 122, the security of direct investment is guaranteed thanks to the direct payment letters of credit that CIT was able to obtain from banks.
“Direct payment letter of credit is a complex term, but it accomplishes two things,” Gachev explains. “This provides liquidity, allows investors to cash out their investments at any time, and protects the full amount of invested funds from community investors from downside and loss.”
But can this investment model really change lives?
By participating, individuals can confidently explore other investment opportunities and achieve financial goals that previously seemed unattainable. As a first step, investors complete the financial education course “Transition from possession to ownership.” Many investors choose to remain invested after realizing the benefits of ownership, while others sell their shares to start a business, pay for higher education, or make a down payment.
CIT is conducting feasibility studies with eight cities across the country in hopes of replicating that model, and also plans to expand wealth-building resources to a broader range of Oregonians.
Since CIT’s creation in 2017, Oregon Community Foundation (OCF) has championed this model through grant support and mission-aligned financing from OCF’s Oregon Impact Fund. The fund is his $30 million endowment that provides growth-enhancing capital to Oregon-based nonprofit and for-profit venture companies. Funds and intermediaries.
OCF supports models that advance Oregon’s economic vitality, promote equitable wealth distribution, and foster sustainable impact across generations.
For more information, visit Community Investment at investcit.com and Oregon Community Foundation at oregoncf.org.
Brand Stories are paid content articles that enable Oregon Business advertisers to share news about their organizations and engage with readers about business and public policy issues. Stories are produced in-house by the Oregon Business Marketing Department. For more information, please contact Associate Publisher Courtney Kutzman.