Cottonwood Raises $1.2M Through Preferred Stock Sales

The offering is part of a broader $150 million capital raise aimed at expanding investor participation through private placements.

April 10, 2025

Cottonwood Communities Advances Private Equity Push with New Capital Raise

Cottonwood Communities is moving forward with its private capital strategy. The company just brought in $1.2 million from its latest round of Series A Convertible Preferred Stock sales, part of a broader $150 million offering aimed at accredited investors.

The stock is priced at $10 per share and is being offered under Rule 506(b) of Regulation D. That means the shares are only available to accredited investors, with no general solicitation. Cottonwood launched the offering in September 2023 and is raising capital on a best-efforts basis.

Between March 31 and April 8, 2025, the company sold 119,900 shares and received $1,199,000 in gross proceeds. To complete the transaction, it paid:

• $71,940 in selling commissions


• $35,970 in placement fees

As of April 8, Cottonwood had 7,874,121 shares of Series A Convertible Preferred Stock outstanding. These shares are structured with conversion rights, giving investors a path to convert to common equity. Specific terms weren’t disclosed in the report, but the format points to a focus on flexibility and investor alignment.

Targeted Strategy, Steady Momentum

The company is using this private placement approach to build long-term capital with targeted investor outreach. It's a path that lets them sidestep public market complexity while still bringing in meaningful equity.

Cottonwood’s progress reflects steady interest in real estate-backed investments from accredited buyers. With $1.2 million raised in this short window, the company continues to gain traction toward its $150 million goal.