Cottonwood Communities Raises Over $1.1M in Series 2025 Preferred Stock Sales
The company also completed additional share exchanges from earlier series with no fees or commissions.
October 31, 2025
Cottonwood Expands Private Offering with Strong Investor Participation
Between October 9 and October 29, Cottonwood Communities brought in over $1.14 million in new capital through its Series 2025 Preferred Stock private placement. Shares were sold to accredited investors at $10 each, with discounted pricing available to qualifying categories of buyers.
This round of sales is part of a larger, $150 million private placement initiative that the company launched in December 2024. Conducted under Rule 506(b) of Regulation D, the offering is limited to accredited investors and excludes general public marketing. This structure allows Cottonwood to raise capital efficiently while staying within regulatory bounds.
In addition to cash sales, Cottonwood issued 5,072 Series 2025 shares during the same period through structured exchanges. These exchanges were completed using fixed ratios: 1:1 to 1:1.0782 for Series 2019 shares, and 1:1 for Series 2023 shares. There were no selling commissions or placement fees charged for the exchange transactions.
As of October 30, the total number of Series 2025 Preferred shares outstanding reached 9,579,944. The company reported $59,520 in selling commissions and $32,914 in placement fees related to the new equity sales, not including the zero-fee exchange activity.
This two-track capital strategy—combining direct investment with rollover options—continues to support Cottonwood’s fundraising goals. It offers investors both flexibility and continuity, especially for those already holding Series 2019 or 2023 Preferred Stock. The exchange window remains open through September 30, 2025, giving existing shareholders time to participate if they choose.
Cottonwood is operating the Series 2025 offering on a best-efforts basis, keeping investor interest aligned with capital inflows. With consistent participation from both new and existing shareholders, the company is building momentum behind this latest preferred stock issuance.
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