Cottonwood Communities Raises $2.5M in Latest Preferred Stock Offerings
The company continues to expand its investor base through private placements and strategic stock exchanges.
September 11, 2025
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.
On the expense side, the Series 2025 sales and exchanges incurred $46,500
in commissions and $41,159
in placement fees. Altogether, more than 9.1 million shares
of the Series 2025 Preferred Stock were outstanding as of September 9.
What’s next
These offerings are still active. The Series 2025 Preferred Stock is available for cash purchases—and through the exchange program—through at least September 30. That deadline may be extended.
Cottonwood is using these placements to strengthen its capital base and simplify its preferred stock structure. By offering both cash purchase and exchange options, the company is giving investors flexible ways to participate while staying aligned with its long-term financing goals.
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