Cottonwood Pulls $2.6M Into Series A Preferred in First Eight Days of September

The window ran contiguously with August’s, extending a stretch of near-continuous issuance against a ceiling Cottonwood raised to $200 million earlier this year.

September 10, 2026

Cottonwood Communities sold 265,205 shares of its Series A convertible preferred stock during the first eight days of September, drawing aggregate proceeds of $2,616,000 and lifting the program’s outstanding share count to 13,330,705 as of September 8. The multifamily REIT paid selling commissions of $128,160 and placement fees of $73,755 in connection with the round.

A tightening reporting cadence

The eight-day window is the shortest Cottonwood has used for the Series A program this summer, and it produced more capital than the eleven-day window before it. Recent windows have run:

• July 27 to August 11: $3,042,000 on 308,655 shares;
• August 12 to August 20: $2,599,000 on 267,290 shares;
• August 21 to August 31: $2,052,000 on 207,848 shares;
• September 1 to September 8: $2,616,000 on 265,205 shares.

The periods have run contiguously since late July, leaving no unreported stretches in the sales record.

A higher ceiling in place

The Series A convertible private offering launched on September 19, 2023 and is sold under Rule 506(b) of Regulation D, restricted to accredited investors and conducted without general solicitation, at a stated purchase price of $10.00 per share. Its maximum stood at $150 million as recently as this spring; the current ceiling is $200 million. Raising the cap rather than closing the series and launching a successor keeps an established set of terms and an existing distribution network in market.

Three programs running at once

Cottonwood runs the Series A placement alongside a separate Series 2025 preferred offering, which carries its own $150 million maximum and drew $2.54 million in a mid-May window, and alongside its public common stock offering.

Preferred stock issued through these periodic placements ranks ahead of common shareholders, and the Series A carries a conversion feature into common stock. A steadily growing preferred balance therefore does two things at once: it enlarges the claim sitting in front of common holders, and it accumulates a future source of common share issuance.

Cottonwood Communities is a non-traded, NAV-based perpetual-life REIT investing in multifamily apartment communities and related real estate assets. It is incorporated in Maryland, operates from Utah, and is externally managed by an affiliate of its sponsor. Its preferred stock is not listed on any exchange. President Enzio Cassinis signed the disclosure.