Cottonwood Communities Names New Executives Following Sponsor Restructuring

The board of Cottonwood Communities Inc., a publicly registered non-traded real estate investment trust, has appointed four executive officers following the recapitalization transaction of the REIT’s sponsor.

The board of Cottonwood Communities Inc., a publicly registered non-traded real estate investment trust, has appointed four executive officers following the recapitalization transaction of the REIT’s sponsor, Cottonwood Residential Inc., which was completed late last month.

Previously, Daniel Shaeffer served as chief executive officer, Chad Christensen as president, and Susan Hallenberg as chief financial officer.

The company appointed Enzio Cassinis to serve as CEO and president; Adam Larson as CFO; Paul Fredenberg as chief investment officer; and Susan Hallenberg as chief accounting officer and treasurer. All four will also serve in the same capacities at Cottonwood Multifamily REIT I Inc. and Cottonwood Multifamily REIT II Inc., two Cottonwood-sponsored Regulation A REITs.

Prior to his new role, Cassinis served as the senior vice president of corporate strategy at Cottonwood Residential, the REIT’s sponsor, where he was responsible for financial planning and analysis, balance sheet management, and capital and venture formation activity. He will also serve as CEO for the REIT’s advisor, Cottonwood Communities Management LLC.

Before joining Cottonwood in 2013, Cassinis was vice president of investment management at Archstone, one of the largest apartment operators and developers in the U.S. and Europe. He earned an MBA and juris doctorate from the University of Denver and is a CFA charterholder.

Larson, who was also named CFO for the REITs advisor, previously served as senior vice president of asset management of Cottonwood Residential. Prior to joining Cottonwood in June 2013, he worked in the investment banking division at Goldman Sachs, and previously at Barclays Capital, Bonneville Real Estate Capital and Hitachi Consulting. Larson holds an MBA from the University of Chicago Booth School of Business.

Fredenberg, will also serve as CIO for the REIT’s advisor, was the senior vice president of acquisitions at Cottonwood Residential, a position he held since September 2005. He previously worked in the investment banking division of Wachovia Securities and has held investment banking and management consulting positions at Piper Jaffray and the Arbor Strategy Group. Fredenberg holds an MBA from the Wharton School at the University of Pennsylvania.

Hallenberg, previously the REIT’s CFO, also serves as the CFO and treasurer of Cottonwood Residential, positions she has held since May 2005. Prior to joining the firm she held positions at Phillips, Edison & Company, Lend Lease Real Estate Investments, and Aldrich Eastman & Waltch. She holds a bachelor’s degree in economics/accounting from The College of the Holy Cross.

Last month, Cottonwood Residential started a plan to liquidate and restructure its subsidiaries, including Cottonwood Residential O.P. LP. The plan is to be executed in a series of transactions, some of which have already taken place, the company said.

On September 24th, Cottonwood Residential O.P. distributed properties to Cottonwood Residential in redemption of its interests in the operating partnership.

Cottonwood Residential agreed to sell 12 properties to an unaffiliated third party for approximately $440 million, 10 of which closed on September 28, 2018, and is also marketing for sale an additional five properties valued at approximately $290 million. The proceeds will be used to redeem the non-voting common stockholders of Cottonwood Residential and repay certain institutional partners.

Following the redemption of its stockholders, Cottonwood Residential will be liquidated and dissolved and a new entity has been formed, Cottonwood Residential II Inc., to act as general partner for the operating partnership.

Cottonwood Residential O.P. will continue to operate the remaining platform, including the 12 assets sold, with a total value of assets under management of approximately $2 billion.

Cottonwood Communities launched its $750 million offering in August 2018 to invest primarily in multifamily properties throughout the United States. The company has not yet met the minimum offering amount to break escrow and issue shares. Shares are priced at $10.00 each, and all offering-related expenses will be paid by the REIT’s advisor without reimbursement.

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