26 Jun Kensington Corridor Trust

Kensington Corridor Trust

Interview with Adriana Abizadeh; Executive Director of Kensington Corridor Trust

Jen: How was the Kensington Corridor Trust created? 

Adriana: Our four founding partners came together to envision economic redevelopment of the Kensington Avenue commercial corridor which had significant vacancy and blight. We were formed by a launch team with a broad, deep skillset, strong complementary missions, and a history of collaboration for change: Impact Services (CDC), Shift Capital (private B-Corp developer), IF Lab (small business incubator), and PIDC (public private partnership).

Jen: How are your investment funds catalytic in a way that is different from other funds?

Adriana: The status quo excludes the community, does not build knowledge and capacity in the community, and extracts value. The KCT leverages a neighborhood trust model to maintain community control of property use and values in perpetuity while reinvesting income into community programs. This framework protects the property from significant price escalation while allowing income from the property to be reinvested into community programming and improvement initiatives. The KCT is fully governed by residents and small business owners in Kensington. The Trust also prioritizes power building and policy advocacy for initiatives that would advance quality of life and economic opportunity for residents and small business owners in Kensington.

Jen: How do you describe the kind of non-financial returns the fund offers?

Adriana:  The Trust offers an opportunity at collective governance and collective wealth building that was not previously offered as a possibility. The opportunity to take ownership over land and buildings that would otherwise become sites of extraction by predatory business owners and private developers has been game changing for many in the neighborhood. It has brought about a sense of renewed pride and optimism about the future of the neighborhood.

Jen: Can you describe how you use integrated capital to do your work?

Adriana: The KCT values relationships above all else. We are in relationship with our community and in relationship with others advancing equitable redevelopment. We are seen as a connector in the neighborhood who can find resources and programs for folks, when needed. We cannot be everything to everyone, but we know how to find the people who can help when we can’t. Additionally, our community organizer supports policy advancement through grassroots organizing. Canvassing, attending neighborhood events, and testifying before city council are all critical aspects of forming relationships and advancing policy. We are committed to systems change.

Ms Darlene – Community Garden

Jen: How do you address racial justice, income inequality, and/or gender justice through your products and services?

Adriana: Kensington residents and business owners are at risk of displacement due to rapid gentrification, as close-by neighborhoods in Fishtown and Port Richmond have experienced in the last ten years. The change that KCT drives is the transfer of Kensington’s real estate ownership to its current communities, predominantly black and brown folks. Their collective ownership gives them a platform for decision making, policy advocacy, and self-determination. KCT also supports primarily BIPOC and women entrepreneurs opening brick and mortar businesses along Kensington Avenue in KCT stewarded spaces.

Both initiatives combined ensure the majority minority Kensington community remains intact, and that low-income BIPOC folks not only avoid displacement, but also benefit from the neighborhood’s revitalization, both economically, and in the neighborhood’s broader health and safety.

Jen: Can you share with us an example of an investment? 

Adriana: All investments made by the KCT are into the acquisition, redevelopment, and reactivation of commercial mixed use real estate assets on Kensington Avenue. To date the KCT has acquired 17 assets. Twelve of those are vacant lots and the other five are commercial mixed-use properties requiring varying degrees of rehab. The Trust holds assets perpetually. The average investment for acquisition across the portfolio is $90k. Total investments to date total $1.5 million in acquisitions. https://kctphilly.org/stewarded-properties

Jen: What do you tell people who think your fund is risky?

Adriana: The risk of not investing into the KCT is that gentrification will continue to roll across the neighborhood and legacy residents and business owners will be displaced due to increasing rents and property taxes. The risk of not investing into the KCT is that outside capital will be allowed to determine the fate of the Kensington neighborhood. The risk of not investing into the KCT is a predominantly black and brown neighborhood with one of the lowest average household median incomes in the city will be priced out of their neighborhood. When you can no longer afford to live in what was the most affordable neighborhood in the city of Philadelphia… Where do you go next?

Investment Thesis/What is your rationale for your approach to investing? 

A once thriving commercial corridor, Kensington Avenue, has been adversely affected by violent crime and a rampant opioid epidemic. The KCT fosters equitable economic development by leveraging patient, flexible capital and a long-term trust vehicle. The KCT de-commodifies real estate assets and transitions them to neighborhood control.

Geography:  Kensington neighborhood of Philadelphia

Year Founded: 2019

# of Investments: 17

# of Investors: 15 (donors, funders, supporters, investors) 

Funds Raised: $10,000,000 since inception (including pending term sheets)

What’s on Adriana’s Mind?

Book: The Body Keeps the Score by Besser Van Der Kolk 

Song: The Waves We Give by Beautiful Chorus

Podcast: Don’t Call Me Resilient