Cottonwood Communities Raises $1.38M in Preferred Stock Sales
The new capital inflow is part of a broader $150 million private offering launched to support the company's growth strategy.
December 01, 2025
Cottonwood Communities Reports Progress on $150 Million Preferred Stock Offering
Between November 21 and November 27, Cottonwood Communities brought in approximately $1.38 million
through its ongoing private offering of Series A Convertible Preferred Stock. The shares, offered exclusively to accredited investors, were priced at $10.00 each. In total, the company issued 141,809 shares
during this latest window.
This update is part of a larger fundraising effort Cottonwood launched in September 2023. The offering, capped at $150 million, is being conducted under a Regulation D exemption, which allows private placements to move forward without a formal SEC registration, provided certain criteria are met.
The proceeds aren’t going directly to the bottom line. Cottonwood reported $42,000
in selling commissions and another $41,250
in placement fees tied to this round. But even after these costs, the capital raised adds momentum to the company’s broader investment plans—whether that’s fueling acquisitions, strengthening the balance sheet, or preparing for new developments in the multifamily space.
By the end of the reporting period on November 27, the total number of Series A Convertible Preferred shares outstanding had reached 11,395,150. That figure points to sustained investor interest over the course of the offering.
Cottonwood hasn’t disclosed how it plans to allocate these specific funds, but the intent is clear: raise capital from qualified investors and deploy it strategically across its portfolio. These transactions offer a window into how the company is structuring its capital stack to support long-term growth.
The offering is still in motion. Future updates will show how close Cottonwood gets to its $150 million target
—and how the proceeds are ultimately put to work.
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