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Cottonwood Communities Raises $2.5M in Latest Preferred Stock Offerings

Fresh capital through private placements

Cottonwood Communities has added over $2.5 million in fresh capital through ongoing private placements of its preferred stock. These offerings—targeted at accredited investors—are part of a broader strategy to raise funds and transition shareholders into newer series.

Here’s what’s happening.

Cottonwood is currently running two private offerings: one for its Series A Convertible Preferred Stock and another for its Series 2025 Preferred Stock. Both are structured as best-efforts placements, meaning shares are being sold without a firm underwriting commitment, and both are exempt from registration under Rule 506(b) of Regulation D.

Between August 29 and September 9, Cottonwood sold 188,513 shares of Series A Convertible Preferred Stock at $10.00 per share. This brought in roughly $1.85 million in proceeds. After accounting for $79,860 in selling commissions and $52,847 in placement fees, the company added to the more than 10 million Series A shares already in circulation.

Series 2025 sales and exchanges

In parallel, the company also raised $623,700 through the sale of 62,761 shares of Series 2025 Preferred Stock during the week of September 2–9. These shares were also priced at $10.00. In that same window, Cottonwood issued an additional 96,591 shares of Series 2025 Preferred in exchange for existing shares from its 2019 and 2023 Preferred offerings—at set ratios ranging from 1:1 to 1:1.0782. This exchange structure gives investors a clear pathway to convert older holdings into the current series.