Cottonwood Communities Raises $1.9M in Preferred Stock Offering
The company continues to advance its $150 million private placement with over 10.7 million preferred shares now outstanding.
October 09, 2025
Cottonwood Communities Secures $1.9 Million Through Ongoing Private Placement
Between September 29 and October 7, Cottonwood Communities sold just over 194,000 shares of its Series A Convertible Preferred Stock, generating $1.9 million in proceeds. This latest round is part of a larger $150 million private placement effort that’s been underway since late 2023.
The offering is limited to accredited investors and follows Rule 506(b) of Regulation D. That means no public marketing and no registration requirement with the SEC. Shares are priced at $10.00 apiece, and investors in this round contributed $1,918,200. The company paid out $98,400 in commissions and $52,971 in placement fees tied to the sale.
With this update, the total number of Series A Convertible Preferred shares outstanding has grown to 10,763,114. Cottonwood continues to move forward with the broader raise, which is structured as a best-efforts private placement.
These capital raises help support the company’s real estate investment platform. While the filing doesn’t detail how proceeds will be used, Cottonwood has historically used capital from similar offerings to fund acquisitions and development projects.
The company remains focused on reaching its $150 million goal. By keeping the offering private and targeting accredited investors, Cottonwood maintains flexibility while expanding its investor base.
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