Cottonwood Multifamily REIT I Increases Net Asset Value

The board of Cottonwood Multifamily REIT I Inc., a Regulation A+ real estate investment trust, approved an updated net asset value of $10.85 for the company’s common stock, an 8.5 percent increase from the previous NAV per share of $10.00.

Shares of the offering were originally sold for $10.00 each, and the current distribution rate remains unchanged at $0.575 per share on an annualized basis through June 30, 2017.

Cottonwood Multifamily REIT I owns a portfolio of three multifamily properties located in the southern United States and purchased for a combined $140.9 million.

The REIT owns a 90 percent interest in the properties, which were purchased in joint ventures with affiliate Cottonwood Residential O.P LP. The properties have a combined appraised market value of $148.6 million and were appraised by Cushman & Wakefield of North Carolina, Newmark Grubb Knight Frank, and CBRE – Valuation & Advisory Services.

The company noted that the NAV considered metrics such as cash flows, comparable sales metrics, capitalization rates, loan balances, interest rates and financial projections.

Cottonwood Multifamily REIT I commenced its $50 million private offering in May 2016, and had sold all of the 5 million shares of its common stock by April 2017.

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