ROSELAND — Chicagoans can own a stake in a new Roseland medical and retail center through an online crowdfunding campaign — and potentially see a financial and community return on their investment.
Chicago TREND, a Black-owned real estate investment company, hopes to receive at least $100,000 in investment from Chicagoans through its Small Change crowdfunding campaign. With the investment plus its own financing, the company plans to acquire the 27,000-square-foot Roseland Medical and Retail Center at 100 W. 111th St. and the adjacent vacant lot, on which it plans to develop further.
Chicago TREND is asking for $1,000 minimum investments, which co-founder and CEO Lynier Richardson thinks will give Chicagoans, international supporters and especially Roseland residents the opportunity to be beneficiaries of the area’s local successes. Should the campaign’s minimum goal be met before its May 10 end date, Chicago TREND will continue accepting investments to reach its $1.25 million maximum goal.
Chicago TREND intends to buy the property and nearby lot no matter the interest the campaign receives, as the company is committed to giving Chicago’s minority residents the chance to invest in their own community, Richardson said.
“Our belief, our theory of change is that if people have a little connection to ownership, even if it’s $1,000, even if it’s indirect, that they will patronize and protect and respect the shopping center and benefit from it differently,” Richardson said. “That ownership will drive community cohesion and different community conversations, and even civic involvement ultimately, that might reduce crime and strengthen property values and keep people from depopulating the neighborhood.”
Chicago TREND plans to buy the Roseland Medical and Retail Center from DL3 Realty Advisors, a Chicago-based real estate developer owned by Leon Walker, according to a news release. Several businesses are leasing spaces in the center, including Chicago Family Health Center, Cermak Immediate Care, Fresenius and Roseland Pharmacy One, plus multiple fast-food restaurants and a nail spa.
The crowdfunding campaign has received $45,500 from 13 people, about 45 percent of its minimum goal.
Chicago TREND is hosting virtual conversations via Zoom and hopes to host meetings at local churches and libraries so more people can learn about the campaign and benefits of local investing, Richardson said.
A West Side native, Richardson started Chicago TREND 10 years ago as a research assignment to determine ways of strengthening neighborhoods by improving commercial corridors for the MacArthur Foundation, he said.
Chicago TREND began to invest in minority and nonprofit developers on the South and West sides, helping small businesses and entrepreneurs in those areas bring in more amenities and services, Richardson said.
Richardson aims to do the same in Roseland, which is “on the cusp of change,” he said.
He was partly inspired to focus on the Far South Side neighborhood after seeing the civil unrest and looting in the area following the murder of George Floyd by a Minneapolis police officer in 2020, Richardson said.
“What I remember as I watched TV, right after George Floyd was murdered, there was civil unrest on the South Side and some looting stores, and I remember this person, this Black man, standing in front of a store saying, ‘Don’t wreck my store; it’s Black-owned.’ … And it hit me that same day that wealth is created by owning assets, and assets that generate revenue and appreciate over time and actually sometimes have tax advantages,” Richardson said.
Once Chicago TREND has identified a neighborhood it’s interested in, it determines a shopping center it believes is financially successful. The company then takes the steps to buy it while offering up to 49 percent of equity available to interested local investors, Richardson said.
Richardson thinks the key to addressing the racial wealth gap is not only providing amenities and services to areas but also giving the people who live in underserved neighborhoods an opportunity to own assets and help develop local entrepreneurs, he said.
“My hope is that someone invests $1,000 or $2,000 here, and even if we are wildly successful, financially it’s not going to change their life. This is a seven- to a 10-year whole period project, and if we’re right, people will earn a nice financial return. But really, the goal here is this is an on-ramp to investor education,” Richardson said.
“Hopefully, it stimulates people to think about owning other assets, their home, or businesses or investing in other commercial properties in the neighborhood.”
Chicago TREND anticipates the value of the Roseland property to grow from $186,000 in the first year to $256,000 over the next eight years, after which a sale of the property is planned, according to the Small Change campaign. Those who invest at least $1,000 may make back $2,561 after the eight-year period, according to the campaign.
Richardson believes the Roseland Medical and Retail Center will be a key community asset as developments — including the Roseland Medical District, established by the Illinois Legislature back in 2011; Red Line Extension Project, which will see the creation of a new Red Line train stop at 111th Street; and those in nearby Pullman — continue, he said.
“We think Roseland is on the cusp of change, and we think the shopping center will be a good asset to own over the coming years as the neighborhood continues to get stronger,” Richardson said.
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