Cottonwood Communities Inc. has filed a registration statement with the Securities and Exchange Commission for a $750 million non-traded real estate investment trust sponsored by Cottonwood Residential Inc.
According to the prospectus, Cottonwood Communities is offering up to $675 million in shares of common stock in its primary offering and up to $75 million in distribution reinvestment plan shares.
Cottonwood Communities Management LLC, the REIT’s advisor, will be responsible for paying all selling commissions, dealer manager fee and organizational and offering expenses without reimbursement.
Cottonwood Communities plans to invest in multifamily apartment communities and related assets located throughout the United States.
Specifically, the REIT seeks to invest at least 65 percent of the fund’s assets in stabilized multifamily apartment communities and up to 35 percent in mortgage loans, preferred equity investments, mezzanine loans or equity investments in a property or land which will be developed into a multifamily apartment community.
Shares will be priced at $10.00 each and include a 6 percent selling commission and a 3 percent dealer manager fee paid to Orchard Securities LLC. The minimum initial investment is $5,000.
Cottonwood Residential has already purchased 20,000 shares of REIT common stock at $10.00 per share for a total investment of $200,000.
Cottonwood Residential is an owner/operator of multifamily properties with $1.6 billion in total assets. Established in 2009, the company has ownership interests or structured investment interests (including development projects) in approximately 14,600 apartment units in 13 states.