The Challenge
Blackstar Stability built its reputation by addressing predatory, seller-financed contracts for deed (CFDs) in residential real estate, converting them into fair and affordable mortgages. As Blackstar has looked to grow, a new question emerged: could its model extend into the small business real estate (SBRE) and farmland markets, spaces where ownership is just as critical for long-term stability and wealth-building, but where under-resourced entrepreneurs and farmers often face systemic financing barriers?

Our Approach
Broadstreet partnered with Blackstar on a collaborative, multi-phase process to answer that question. Together, we:

• Mapped the market: synthesizing data, field interviews, and proprietary market analysis to understand the size, scope, and dynamics of SBRE seller-financing.
• Identified priority segments: distilling the most promising segments where Blackstar’s model could drive both financial sustainability and measurable community impact, with a focus on owner-occupied small business properties and farmland.
• Developed a concrete strategy: leveraging SBA 504 and USDA programs to convert seller-financed alternatives into safe, credit-enhanced mortgages.
• Framed an impact thesis: clarifying how expanded property ownership among small business owners and farmers can reduce displacement, strengthen local economies, and help close persistent wealth gaps.

The Strategy
The work provided Blackstar with a clear roadmap on how to acquire seller-financed small business and farmland mortgage financing alternatives, convert them into fair, amortizing mortgages aligned with SBA/USDA standards, and recycle capital through CRA-driven sales and securitizations to scale the model.

The Impact
Our analysis demonstrated that:

• Converting CFD commercial real estate loans can reduce borrower interest rates by nearly 3% on average, immediately lowering costs and stabilizing ownership.
• Borrowers gain meaningful equity at the point of conversion (over $160,000 on average in one acquisition sample).
• Owner-occupied businesses with property ownership show survival rates up to three times higher than renters, underscoring the long-term value of the strategy.

These findings provided Blackstar with both the evidence and the narrative to engage investors, lenders, and community partners in building a scalable, mission-aligned investment platform.

Broadstreet’s work was critical in helping us chart a path into understanding and developing an impact strategy to address the challenges in securing fair small business and farmland owner-occupied commercial real estate financing. Their collaborative process distilled a complex market into clear, actionable opportunities that align with our mission and has positioned Blackstar as an impact fund manager to deliver both strong returns and deep community impact. What makes Broadstreet stand out is that they are truly mission-aligned partners and impact-driven fund managers themselves – and we’re excited to continue working with them as this strategy evolves. In addition, Broadstreet’s relationship with various stakeholders across the impact industry will allow the management team at Blackstar to think more expansively in executing a sound impact strategy in the commercial space for those who have not been appropriately served.
-George Scott, Principal at Blackstar