Cottonwood Communities $1 Billion Offering Declared Effective
November 8, 2021 | James Sprow | Blue Vault
The SEC declared the common stock offering of Cottonwood Communities effective on November 4, 2021. The following selections are from the Company’s November 4 prospectus:
Maximum Offering of $1,000,000,000 of Shares of Common Stock
Cottonwood Communities, Inc. is a net asset value (“NAV”)-based perpetual life real estate investment trust (“REIT”) that owns a diverse portfolio of multifamily apartment communities and multifamily real estate-related assets throughout the United States. We are externally managed by our advisor, CC Advisors III, LLC (“CC Advisors III”), a wholly owned subsidiary of our sponsor, Cottonwood Communities Advisors, LLC (“CCA”). We conduct our operations as a real estate investment trust (“REIT”) for U.S. federal income tax purposes. We are not a mutual fund and do not intend to register as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”).
We are offering on a continuous basis up to $1,000,000,000 of shares of common stock, consisting of up to $900,000,000 in shares in our primary offering and up to $100,000,000 in shares pursuant to our distribution reinvestment plan. We are offering to sell any combination of three classes of shares of our common stock in this primary offering, Class T shares, Class D shares and Class I shares. In addition, we are offering five classes of shares of our common stock in our distribution reinvestment plan offering, Class T shares, Class D shares, Class I shares, Class A shares and Class TX shares. The share classes for sale have different upfront selling commissions and dealer manager fees, and different ongoing distribution fees. The purchase price per share for each class of common stock will vary and will generally equal our prior month’s NAV per share (which will be our most recently disclosed NAV per share at such time), plus applicable upfront selling commissions and dealer manager fees. We may offer shares at a price that we believe reflects the NAV per share of such stock more appropriately than the prior month’s NAV per share in cases where we believe there has been a material change (positive or negative) to our NAV per share since the end of the prior month. This is a “best efforts” offering, which means that Orchard Securities, LLC, the dealer manager for this offering, will use its best efforts to sell shares, but is not obligated to purchase or sell any specific amount of shares in this offering.
Real Estate Investments
As of the date of this prospectus, we have an ownership interest or structured investment interest in 33 multifamily apartment communities in 13 states with 9,746 units, including 1,373 units in four multifamily apartment communities in which we have a structured investment interest and another 1,079 units in four multifamily apartment communities under construction. In addition, we have an ownership interest in two properties planned for development. Generally, we own our investments in fee simple through single purpose limited liability companies that are direct wholly owned subsidiaries of our operating partnership. As of June 30, 2021, our multifamily properties were 96.72% occupied.
Source: SEC
