Cottonwood Communities Raises $872,000 in Preferred Stock Offering

Cottonwood continues its capital-raising efforts through a private placement available to accredited investors.

March 03, 2025

New Capital Secured in Ongoing Offering

Cottonwood Communities, Inc. has secured $872,000 in its ongoing Series 2025 Preferred Stock private placement, adding momentum to its latest capital-raising efforts.

Launched on December 9, 2024, the offering targets up to $150 million in capital through accredited investors. Shares are priced at $10 each, with certain buyers eligible for discounts. Investors holding Series 2019 and Series 2023 Preferred Stock can also exchange their shares at a set ratio. The offering remains open through March 31, 2025, though the company may extend the deadline.

Recent Sales Activity

Between February 24 and February 27, Cottonwood sold 88,000 shares under this offering. The company brought in $872,000 in gross proceeds, with $44,480 allocated to selling commissions and $26,339 in placement fees. By February 27, the total number of outstanding Series 2025 Preferred Stock shares had reached 1,332,030.

Regulatory Compliance and Future Outlook

Cottonwood operates under Rule 506(b) of Regulation D, allowing it to raise capital through private placements while limiting participation to accredited investors. This structure enables the company to secure funding without exposure to public markets.

With the offering still active, additional investments could further strengthen Cottonwood’s financial position. As it continues to refine its capital strategy, these transactions play a key role in supporting its broader portfolio objectives.