Cottonwood Communities Raises $2.74M

Cottonwood Communities continues its capital-raising efforts through private placements, expanding its investor base.

February 07, 2025

Preferred Stock Offerings Bring in Fresh Capital

Cottonwood Communities, Inc., a real estate investment trust focused on multifamily properties, has raised $2.74 million through two ongoing private placement offerings of preferred stock. The capital infusion, which took place between January 30, 2025, and February 5, 2025 , supports the company’s continued growth in the multifamily real estate sector.

The Series A Convertible Preferred Stock offering , first launched on September 19, 2023 , added $1.74 million in proceeds during the latest reporting period, with 176,599 shares sold at $10.00 per share . The company incurred $80,400 in commissions and $49,883 in placement fees related to these transactions. As of February 5, 2025 , the total outstanding shares for this series reached 6.48 million .

Meanwhile, the Series 2025 Preferred Stock offering , which began on December 9, 2024 , generated an additional $1.01 million in capital through the sale of 100,500 shares at $10.00 per share . This offering came with $60,300 in commissions and $29,648 in placement fees . The total number of outstanding shares in this series rose to 135,500 by February 5, 2025.

Strategy Behind the Fundraising Efforts

Both preferred stock offerings are available only to accredited investors and are conducted under Rule 506(b) of Regulation D , exempting them from registration with the Securities and Exchange Commission (SEC). This private placement structure enables the company to raise capital more efficiently while maintaining greater control over its shareholder base.

The funds raised align with Cottonwood’s broader strategy of expanding its real estate portfolio and enhancing liquidity . The company continues to focus on the multifamily housing market, leveraging these investments to fund acquisitions, development projects, and operational improvements.

With over $300 million in preferred stock offerings authorized , Cottonwood Communities is expected to continue issuing shares in both series, depending on investor demand.