A nonprofit group called Catalyst Miami is spearheading a co-op for residents to invest in commercial property. Local working-class residents will be able to buy shares for as little as $10.

Leaders say it is a replicable model that could eventually extend to all of Miami-Dade County.

Catalyst Miami Vice President of Community Economic Development Ahmed Mori said in an announcement Friday that the co-op is part of a strategy to create economic prosperity, build intergenerational wealth and advance racial equity.

He told Bisnow via email that Catalyst Miami will raise funds to buy a property through a mix of grants, investment capital and/or debt financing, and create a separate legal entity to own it. A steering committee will choose a property to buy near one of two planned North Miami stations for the Brightline private train.

Community members 18 or older who live in one of four ZIP codes — 33161, 33167, 33168 or 33181 — will be allowed to invest after passing an investor education course.

"Community investors will purchase shares on a recurring monthly basis," Mori wrote. "We expect that shares will be initially valued at $10. Community investors will have the option of purchasing 1 to 10 shares a month ($10 - $100), and we estimate a monthly average of $50 monthly based on household incomes in the above mentioned ZIP codes relative to cost of living estimates for the City of North Miami."

Catalyst Miami estimates bringing on 75 community investors a year until reaching 350 at the five-year mark. Mori said by Year 10, community investors will own 80% of the building.

Catalyst will retain 20% of the property to later either sell back to community investors or another investor in order to provide startup capital for a second investment co-op.

"We are exploring other avenues for downside risk protection as well, e.g., letters of credit," Mori wrote.

Community investors will be protected against any losses for the lifetime of their investment, he said.

"Beyond insuring the property, we also retain pro bono legal counsel in the event that shareholder, contractual or torts liability arise within the project," Mori wrote. "If a major tenant pulls out, we offer the vacancy to the hundreds of businesses in North Miami that we work with via our technical assistance program and general outreach. We can also work with the North Miami Community Redevelopment Agency (CRA) to re-tenant, since they also have a close relationship with small businesses in the community."

JPMorgan Chase has kicked in a grant of $1M toward the project, Friday's announcement said.