Cottonwood Multifamily REIT I, Inc.

Closed Offering Industry: Real Estate (REIT)

 

Sector: Multifamily

Minimum investment: $10,000

Offering Type: Reg A+

Offering Amount (Max): $50,000,000

Offering Amount (Min.): $2,000,000

Offering Price: $10.00

Targeted Annual Yield: * 5.75% annual yield (paid monthly)

 

* 5.75% annual yield (paid monthly); 8% Preferred Return and Principal back before Sponsor is entitled to 20% of property upside at exit, remaining 80% of upside goes to investors.

INVESTOR MATERIALS

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OVERVIEW

Cottonwood Residential is a fully integrated real estate investment company focused solely on the multifamily sector (Apartment Buildings). It has extensive expertise in asset and property management that is complemented by its capabilities in the financial, construction, and legal aspects of Tenants in Common multifamily ownership. Cottonwood Residential has over $1.2 billion in total assets and an established operating platform with approximately 22,000 units under management and over 580 employees (approximately 110 corporate associates and approximately 470 on‐site professionals).

Key statistics:

  • Cottonwood Multifamily REIT #1 has existing portfolio of 3 properties
  • Cottonwood Residential invested $5 million into REIT #1 offering alongside investors and covered $5 million in offering expenses
  • Primarily targeting assets that are:
  • Class A Multifamily
  • Located in major metropolitan areas
  • Stabilized occupancy
  • Constructed after 2000
  • Estimated Leverage: 60% to 65%
  • Strong Management: CEO former analyst with Wasatch Advisors and VP of Investment Banking at Morgan Stanley.

Offering Type: Reg A+ (REIT)

  • Investors can invest up to 10% of their net income, or 10% of their net worth (whichever is greater).

Cottonwood’s investment objectives are:

  • Preserve, protect & return invested capital;
  • Pay attractive and stable cash distributions to shareholders; and
  • Realize capital appreciation in the value of its investments over time.

Liquidity:

Cottonwood will repurchase shares according to schedule below based on an NAV disclosed by board on a quarterly basis after second anniversary of breaking escrow. There is no guarantee that any/all liquidity requests will be honored, it is at discretion of Cottonwood.

Share Purchase Anniversary Price (% of estimated value)
Less than one year No repurchase allowed
1 year 80%
2 years 85%
3 years 90%
4 years and thereafter 95%
Event of shareholder death or disability 95%

 

Exit Strategy:

Expected 5 to 7-year hold, sell out of portfolio over time.

 

An investment in the securities described herein involves risks and other considerations. Before you invest, you should read the Form 1-A and other documents that Cottonwood Multifamily REIT I, Inc. (“CMR”) filed with the Securities and Exchange Commission (“SEC”) for more complete information about CMR and the risks and other considerations relating to the securities described herein. Any terms of securities described herein represent a general overview of certain selected terms and are qualified in their entirety by reference to the prospectus and other documents that CMR filed with the SEC.

THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY THE SECURITIES DESCRIBED HEREIN. AN OFFERING IS MADE ONLY BY THE PROSPECTUS. THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A PROSPECTUS.

LEGAL NOTICE THE OFFERING STATEMENT FOR THIS OFFERING HAS NOT YET BEEN QUALIFIED BY THE SECURITIES AND EXCHANGE COMMISSION UNLESS OTHERWISE INDICATED ABOVE. ACCORDINGLY, NO MONEY OR OTHER CONSIDERATION IS BEING SOLICITED, AND IF SENT, WILL NOT BE ACCEPTED. NO SALES WILL BE MADE OR COMMITMENTS TO PURCHASE ACCEPTED UNTIL THE OFFERING STATEMENT RELATING TO THIS OFFERING HAS BEEN QUALIFIED BY THE SECURITIES AND EXCHANGE COMMISSION. A PROSPECTIVE PURCHASER’S INDICATION OF INTEREST IS NON-BINDING.