Cottonwood Communities, Inc.
MD
Non-traded REITNon-traded REIT
Compared against Non-traded REIT non-traded reits.
1Y return
−5.4%
6th pctile · behind most peersas of 2026-03-30computed from net asset value per share and distributions, which the manager determines
Since inception
not stated in filings
Distribution rate
6.0%
exceeds net investment incomeNet assets
$1.09B
as of 2026-03-30
Net expenses
not stated yet
Repurchase
2% monthly
6 of 42 peers matchLevel 3
not stated yet
Last offer
no offer yet
What owning this fund costs per year
Hold period3 yrs
Ongoing costs, determined from the fund's filings3.30%
Ongoing costs are the 1.25% advisor fee on net asset value, about 1.0% of net assets in general and administrative costs, and about 1.0% for the affiliated property management platform after third party fees, roughly 3.3% a year on a $1.03 billion net asset base. Class I pays no upfront charge. Class T adds 0.85% a year plus 3.5% upfront, about 5.3% all in.
Sales loadnone
Total drag per year3.30%
This is the cost for class I.
Based on Annualized from the six months ended June 30, 2026 (10-Q), cross-checked against FY2025 (10-K); reflects the permanent management fee cut from 1.50% t.
This fund's cost was determined by reading its filings in full, because the figures in its expense table do not decompose cleanly. Parts were derived from dollar amounts the filing states.
This fund does not state a single expense ratio that matches this definition, so the figure above was determined by reading its filings and is explained below. Drag is the fixed cost of ownership: paid regardless of performance. The incentive terms (The Special Limited Partner, an affiliate of the advisor, holds a 12.5% performance participation interest in the operating partnership, payable annually and accrued monthly, subject to a 5% total return hurdle and a loss carryforward amount. No performance allocation was earned for 2025.) apply only to returns earned. How this is calculated
Against Non-traded REIT non-traded reits
Total drag
74th pctile · pricier than most
1Y return
6th pctile · behind most
Gray mark is the peer median. The drag comparison uses the same 3-year hold for every fund.
Every figure below was read from this fund's filing. Hover any number to see the sentence it came from. Figures cover Annualized from the six months ended June 30, 2026 (10-Q), cross-checked against FY2025 (10-K); reflects the permanent management fee cut from 1.50% to 1.25% of adjusted NAV effective December 19, 2025 and the larger post-merger asset base. Not a duplicated annualization: the filing reports six-month dollar amounts, which were doubled..
Open the filing on sec.gov (0001692951-26-000055)Size and leverage
Net assets$1.09B?
Borrowings$1.29B?
Investments held47?
Started2016?
What the manager charges
Management feeof net assets1.25%?
Performance feeSpecial Limited Partner receives 12.5% of CROP total return (distributions plus change in NAV) after other unit holders receive a 5% annual total return, with a 100% catch-up and a loss carryforward; accrues monthly, settled annually in cash or Class I units. None earned in 2025 or in the six months ended June 30, 2026.?
Hurdle5.00%?
High water markYes?
Expense cap2.00%?
Adviser is subsidising costsNo?
Getting your money back
Repurchase offersmonthly?
Early repurchase fee5.00%?
Last offer filled in fullYes?
Where distributions come from
Distribution rate6.00%?
Paid out of income3.50%?
Funded by borrowing39.70%?
Distributions were larger than the income the fund earned, so part of what was paid out came from capital or borrowing.
What it holds
Floating rate0.00%?
MostlyMultifamily residential (apartments)?
Who is involved
AdviserCC Advisors III, LLC (sponsor: Cottonwood Communities Advisors, LLC)?
AuditorKPMG LLP?
Valuedmonthly?
Independent valuation agentYes?
Deals with affiliatesYes?
Share classes
| Class | Ongoing fee | Entry charge | Expense ratio | Minimum |
|---|---|---|---|---|
| Class T | 0.85% | 3.50% | - | - |
| Class D | 0.25% | 0.00% | - | - |
| Class I | 0.00% | 0.00% | - | - |
| Class A (legacy, DRP only) | 0.00% | 0.00% | - | - |
Also worth knowing
- Management fee permanently reduced from 1.5% to 1.25% of adjusted NAV effective December 19, 2025.
- RealSource merger closed December 18, 2025, adding 11 communities and 3,565 units valued at about $500 million, paid in stock and CROP Units; apparent microbial growth was identified at many of the acquired properties with total indemnity capped at $30 million.
- About $452.9 million of debt matures within twelve months of the Q2 2026 filing and cash on hand is less than those maturities; management plans refinancings, a land sale and credit facility draws.
- All share repurchase requests have been satisfied to date, with no proration under the 2% monthly and 5% quarterly caps.
- Near-term debt maturities exceed available liquidity: 452.9 USD millions maturing within 12 months (Refinancing at higher rates or forced asset sales would reduce NAV and could crowd out share repurchases and distributions.)
- Mandatorily redeemable preferred stock treated as debt: 225.2 USD millions outstanding at 6/30/2026 (These shares must be redeemed for cash at $10.00 plus accrued dividends starting June 2027, ranking ahead of common and consuming future liquidity; their 6.0% to 7.0% dividends run through interest expense.)
- Revolving credit facility capacity constrained: 31.4 USD millions available of a $100 million facility (Borrowing capacity is capped by debt service coverage tests, limiting the cushion for repurchases, maturities and capital calls.)
- Distributions largely funded from borrowings, asset sales and offering proceeds: 3.5 % of first-half 2026 distributions funded by operating cash flow (Distributions not covered by operations reduce invested capital and can be a return of capital to holders.)
- Non-cash accrued interest on mezzanine loans: 17.2 USD millions receivable at 6/30/2026 (A growing share of reported other revenue is accrued rather than collected, so realization depends on the underlying developments refinancing or selling.)
- Preferred equity return accruing but not recognized in earnings: 3.3 USD millions preferred return accrued in first half 2026 versus $1.2 million of equity losses recorded (The contractual return on a preferred equity investment is only collectible on a capital event, and the company stopped adding it back in Core FFO from June 30, 2026.)
- Contingent fees payable to the advisor on termination: 13.2 USD millions (A termination or non-renewal of the advisory agreement before May 2031 triggers legacy acquisition and financing fees, discouraging a change of manager.)
- Tax protection agreements restrict asset sales: 83.3 USD millions maximum estimated indemnity ($13.9 million to insiders plus $69.4 million to contributors) (Indemnity obligations to insiders and contributing partners can prevent selling properties at the best time and price for common holders.)
Fees
Liquidity terms
Valuation
Independent valuation firmunchanged, 4 filingsEngaged, name in filing
Valuation frequencyunchanged, 3 filingsmonthly
Every value links to the SEC filing it came from. A chip marks a change against the prior filing of the same type; hover a green-dotted value for what changed and why, as stated in the filing.
What the fund reported over time, each point sourced to its filing. Series deepen as older shareholder reports are read.
2026-03-302026-08-18
Each point is a value from one SEC filing, dated as reported. Hover a point for its value.
No repurchase offer filings on record yet.
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Data from public SEC filings. Argus is not a broker-dealer. Nothing here is an offer or investment advice. Every value shows the filing it came from and the date of that filing. Peer percentiles describe where a value sits in the comparison set, never fund quality. "Not stated in filings" is a fact about a document, never a verdict about this fund.