Cottonwood Communities, Inc. has successfully completed a private placement offering, raising approximately $2.83 million through the sale of its Series A Convertible Preferred Stock. This offering, which began on September 19, 2023, allows the company to enhance its capital structure and pursue growth opportunities.

The offering was structured as a best-efforts private placement, exempt from registration under Rule 506(b) of Regulation D of the Securities Act. The company is offering a maximum of $200 million in shares at a purchase price of $10.00 per share, targeting accredited investors without the use of general solicitation.

Background

Cottonwood Communities, Inc. operates in the real estate investment trust (REIT) sector, focusing on the acquisition and management of residential properties. The company is incorporated in Maryland and has its headquarters in Millcreek, Utah. As a non-accelerated filer, Cottonwood is subject to specific reporting requirements under the Securities Exchange Act of 1934.

What the Filing Says

According to the SEC filing dated November 4, 2026, from October 27 to November 3, 2026, Cottonwood issued and sold 284,186 shares of its Series A Convertible Preferred Stock. The total proceeds from this sale amounted to $2,834,500. The company incurred selling commissions of $163,670 and placement fees of $84,510 in connection with the offering. As of November 3, 2026, there are 13,733,963 shares of the Series A Convertible Preferred Stock outstanding.

Impact

The successful completion of this offering is expected to strengthen Cottonwood's financial position and provide additional capital for its ongoing operations and future investments. This move may also influence other players in the real estate investment trust sector, as they may need to consider similar strategies for capital raising in a competitive market.

What's Next

The filing does not say what happens next.