Cottonwood Raises $1.3M Through Private Preferred Stock Offering
The company continues its $150 million capital raise targeting accredited investors with Series A preferred shares.
January 20, 2026
Cottonwood Communities Sells Additional Preferred Stock to Accredited Investors
Cottonwood Communities is moving forward with its ongoing capital raise, adding $1.3 million in proceeds from the sale of Series A Convertible Preferred Stock earlier this month. The offering, launched in late 2023, targets accredited investors and is structured to raise up to $150 million.
Between January 2 and January 15, 2026, the company issued 133,938 shares at $10 per share, consistent with its offering terms. Those sales brought in $1,298,577 in gross proceeds. Cottonwood paid out a total of $78,834 in selling commissions and placement fees tied to these transactions.
The company is running this raise under Rule 506(b) of Regulation D, which means shares are offered privately and exclusively to accredited investors. That structure avoids general advertising and allows Cottonwood to stay aligned with regulatory exemptions while maintaining control over the capital raise.
As of mid-January, total outstanding shares of Series A Convertible Preferred Stock stood at 12,000,136. Cottonwood hasn’t disclosed specific plans for how the proceeds will be used, but the firm’s approach suggests a measured rollout aimed at long-term growth and investor alignment.
There’s still significant room left in the $150 million offering. Investors watching this raise will want to track how quickly Cottonwood continues to move through its available capacity and whether future updates reveal more about the firm’s deployment strategy.
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