Chicago Trend to Acquire Hawthorn Crossings Strip Mall with Local Equity Ownership Model

Chicago-based developer Chicago Trend has signed a purchase agreement to acquire the Hawthorn Crossings strip mall in North Minneapolis from Sherman and Associates. The firm plans to offer up to 49% of the property's equity to local residents and business owners, with investment minimums starting at $1,000. This initiative represents a significant shift in commercial real estate toward community-centric investment models designed to close racial wealth gaps and stabilize underinvested urban corridors.

Lyneir Richardson, principal of Chicago Trend, is spearheading the acquisition of Hawthorn Crossings as the eighth project in his firm’s portfolio to utilize a community-equity model. The firm, which manages a $50 million real estate fund, aims to foster local patronage and protection of assets by allowing neighbors to become stakeholders in the West Broadway property. To encourage participation within the 55411 zip code, an anonymous donor has pledged to match $1,000 investments, while the project itself is backed by the McKnight Foundation and the $5.3 billion GroundBreak Coalition, which focuses on reducing racial disparities in property ownership.

The strategy for Hawthorn Crossings was heavily influenced by the 2020 civil unrest in Minneapolis, which highlighted the urgent need for racial justice investment strategies in commercial corridors. Richardson views the West Broadway location as a high-potential asset, particularly with the upcoming Blue Line light rail extension expected to connect North Minneapolis to the downtown core and surrounding suburbs in the coming years. By securing local ownership now, the developer hopes to ensure that residents can build wealth through the appreciation and economic growth anticipated from these major infrastructure improvements.

While the project has garnered support from community leaders like Brett Buckner of OneMN and the Rev. Alfred Babington-Johnson, it has also met with some local caution. Kristel Porter, president of the West Broadway Business and Area Coalition, expressed appreciation for the inclusive investment model but noted a lack of direct initial outreach to her organization. For the broader commercial real estate sector, this deal serves as a significant case study in impact investing, demonstrating how institutional capital can be paired with micro-equity from the community to stabilize and enhance retail assets in historically marginalized neighborhoods.