Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 25, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 000-56165 | ||
Entity Registrant Name | Cottonwood Communities, Inc. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 61-1805524 | ||
Entity Address, Address Line One | 1245 Brickyard Road, Suite 250 | ||
Entity Address, City or Town | Salt Lake City | ||
Entity Address, State or Province | UT | ||
Entity Address, Postal Zip Code | 84106 | ||
City Area Code | (801) | ||
Local Phone Number | 278-0700 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Central Index Key | 0001692951 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Class T | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Class T common stock, $0.01 par value per share | ||
Entity Common Stock, Shares Outstanding | 3,916,171 | ||
Class D | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Class D common stock, $0.01 par value per share | ||
Entity Common Stock, Shares Outstanding | 205,489 | ||
Class I | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Class I common stock, $0.01 par value per share | ||
Entity Common Stock, Shares Outstanding | 4,606,302 | ||
Class A | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Class A common stock, $0.01 par value per share | ||
Entity Common Stock, Shares Outstanding | 22,742,743 | ||
No Trading Symbol Flag | true | ||
Class TX | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Class TX common stock, $0.01 par value per share | ||
No Trading Symbol Flag | true |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 185 |
Auditor Name | KPMG LLP |
Auditor Location | Denver, Colorado |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Real estate assets, net | $ 1,649,146 | $ 1,697,607 |
Investments in unconsolidated real estate entities | 185,716 | 133,207 |
Investments in real estate-related loans, net | 8,703 | 0 |
Cash and cash equivalents | 63,800 | 63,173 |
Restricted cash | 27,013 | 32,351 |
Other assets | 29,464 | 29,299 |
Total assets | 1,963,842 | 1,955,637 |
Liabilities | ||
Mortgage notes and revolving credit facility, net | 1,022,452 | 1,000,137 |
Construction loans, net | 129,991 | 95,327 |
Preferred stock, net | 201,621 | 121,390 |
Preferred interest liability | 15,300 | 0 |
Unsecured promissory notes, net | 41,883 | 42,953 |
Performance participation allocation due to affiliate | 0 | 20,320 |
Accounts payable, accrued expenses and other liabilities | 81,048 | 65,611 |
Total liabilities | 1,492,295 | 1,345,738 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity | ||
Series A Convertible Preferred Stock | 1,569 | 0 |
Additional paid-in capital | 373,954 | 414,140 |
Accumulated deficit | (94,761) | (71,513) |
Total stockholders’ equity | 218,944 | 304,932 |
Noncontrolling interests | ||
Limited partners | 221,617 | 272,536 |
Partially owned entities | 30,986 | 32,431 |
Total noncontrolling interests | 252,603 | 304,967 |
Total equity and noncontrolling interests | 471,547 | 609,899 |
Total liabilities, equity and noncontrolling interests | $ 1,963,842 | $ 1,955,637 |
Other Liability, Related Party, Type [Extensible Enumeration] | Affiliated Entity | Affiliated Entity |
Class T | ||
Stockholders’ equity | ||
Common stock | $ 39 | $ 48 |
Class D | ||
Stockholders’ equity | ||
Common stock | 2 | 1 |
Class I | ||
Stockholders’ equity | ||
Common stock | 43 | 39 |
Class A | ||
Stockholders’ equity | ||
Common stock | 226 | 266 |
Series A Convertible Preferred Stock | ||
Stockholders’ equity | ||
Accumulated distributions | (14) | 0 |
Common Stock | ||
Stockholders’ equity | ||
Accumulated distributions | $ (62,114) | $ (38,049) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Common stock, shares outstanding (in shares) | 31,648,281 | 35,345,708 |
Class T | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 275,000,000 | 275,000,000 |
Common stock, shares issued (in shares) | 3,917,218 | 4,815,122 |
Common stock, shares outstanding (in shares) | 3,917,218 | 4,815,122 |
Class D | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 275,000,000 | 275,000,000 |
Common stock, shares issued (in shares) | 202,743 | 64,673 |
Common stock, shares outstanding (in shares) | 202,743 | 64,673 |
Class I | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 275,000,000 | 275,000,000 |
Common stock, shares issued (in shares) | 4,296,443 | 3,861,049 |
Common stock, shares outstanding (in shares) | 4,296,443 | 3,861,049 |
Class A | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 125,000,000 | 125,000,000 |
Common stock, shares issued (in shares) | 23,231,877 | 26,604,864 |
Common stock, shares outstanding (in shares) | 23,231,877 | 26,604,864 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenues | ||
Rental and other property revenues | $ 142,833 | $ 123,627 |
Property management revenues | 9,699 | 11,131 |
Other revenues | 1,873 | 3,544 |
Total revenues | 154,405 | 138,302 |
Operating expenses | ||
Property operations expense | 52,765 | 44,846 |
Property management expense | 17,290 | 17,839 |
Asset management fee | 17,304 | 17,786 |
Performance participation allocation | 0 | 20,320 |
Depreciation and amortization | 59,041 | 54,595 |
General and administrative expenses | 11,371 | 11,876 |
Total operating expenses | 157,771 | 167,262 |
Loss from operations | (3,366) | (28,960) |
Equity in earnings of unconsolidated real estate entities | 6,466 | 12,393 |
Interest income | 1,906 | 92 |
Interest expense | (75,468) | (52,310) |
Gain on sale of real estate assets | 24,075 | 0 |
Gain on sale of unconsolidated real estate entities | 0 | 8,129 |
Gain on consolidation of development | 4,225 | 0 |
Promote from incentive allocation agreement | 119 | 30,702 |
Other (expense) income | (2,552) | 3,883 |
Loss before income taxes | (44,595) | (26,071) |
Income tax expense | (303) | (7,959) |
Net loss | (44,898) | (34,030) |
Net loss attributable to noncontrolling interests: | ||
Limited partners | 21,355 | 17,594 |
Partially owned entities | 295 | 787 |
Net Income (Loss) Available to Common Stockholders, Basic | (23,248) | (15,649) |
Net Income (Loss) Available to Common Stockholders, Diluted | $ (23,248) | $ (15,649) |
Weighted-average common shares outstanding - basic (in shares) | 34,305,590 | 29,274,236 |
Weighted-average common shares outstanding - diluted (in shares) | 34,305,590 | 29,274,236 |
Net loss per common share - basic (in dollars per share) | $ (0.68) | $ (0.53) |
Net loss per common share - diluted (in dollars per share) | $ (0.68) | $ (0.53) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Total Stockholders’ Equity | Total Stockholders’ Equity Series A Convertible Preferred Stock | Total Stockholders’ Equity Common Classes T, D and I | Preferred Stock | Preferred Stock Series A Convertible Preferred Stock | Common Stock | Common Stock Class T | Common Stock Class D | Common Stock Class I | Common Stock Class A | Common Stock Class TX | Additional Paid-In Capital | Accumulated Distributions | Accumulated Distributions Series A Convertible Preferred Stock | Accumulated Deficit | Noncontrolling interests Limited Partners | Noncontrolling interests Partially Owned Entities | Noncontrolling interests OP Units Limited Partners |
Stockholders' equity, beginning balance at Dec. 31, 2021 | $ 540,669 | $ 202,920 | $ 0 | $ 0 | $ 0 | $ 2 | $ 234 | $ 0 | $ 275,821 | $ (17,273) | $ 0 | $ (55,864) | $ 267,472 | $ 70,277 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Issuance of stock | 168,477 | 168,477 | 48 | 1 | 36 | 168,392 | |||||||||||||
Offering costs | (14,376) | (14,376) | (14,376) | ||||||||||||||||
Distribution reinvestment | 2,364 | 2,364 | 1 | 2,363 | |||||||||||||||
Distributions reinvested in common stock | 2,219 | ||||||||||||||||||
Exchanges and transfers | 0 | 5,819 | 3 | 5,816 | $ (5,819) | ||||||||||||||
OP Units issued for real estate interests | 2,930 | 2,930 | |||||||||||||||||
CMOF Merger | 39,436 | 43 | 39,393 | 8,273 | |||||||||||||||
CMOF, CMRI and CMRII Merger | (1,469) | (49,178) | |||||||||||||||||
Common stock/OP Units repurchased | (28,379) | (26,897) | (2) | (12) | (26,883) | (1,482) | |||||||||||||
Contributions from noncontrolling interests | 16,282 | (209) | 16,491 | ||||||||||||||||
Other | 4,927 | 1,257 | 1,257 | 3,670 | |||||||||||||||
Distributions to investors | (20,776) | (20,776) | |||||||||||||||||
Distributions to investors | (47,496) | (22,348) | (4,372) | ||||||||||||||||
Net loss | (34,030) | (15,649) | (15,649) | (17,594) | (787) | ||||||||||||||
Reallocation of stockholders' equity and noncontrolling interests | (37,643) | (37,643) | 37,643 | ||||||||||||||||
Stockholders' equity, ending balance at Dec. 31, 2022 | 609,899 | 304,932 | 0 | 48 | 1 | 39 | 266 | 0 | 414,140 | (38,049) | 0 | (71,513) | 272,536 | 32,431 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Issuance of stock | $ 2,140 | $ 27,131 | $ 2,140 | 2,140 | $ 27,131 | 7 | 1 | 6 | 27,117 | ||||||||||
Offering costs | $ (571) | $ (1,800) | $ (571) | (571) | $ (1,800) | (1,800) | |||||||||||||
Distributions reinvested in common stock | 2,353 | 2,353 | 1 | 2,352 | |||||||||||||||
Exchanges and transfers | 0 | 8,642 | 5 | 8,637 | (8,642) | ||||||||||||||
OP Units issued for real estate interests | 22,939 | 22,939 | |||||||||||||||||
Common stock/OP Units repurchased | (98,951) | (95,285) | (16) | (7) | (41) | (95,221) | (3,666) | ||||||||||||
Share-based compensation | 3,011 | 190 | 190 | $ 2,821 | |||||||||||||||
Other | (1,200) | (1,200) | |||||||||||||||||
Distributions to investors | (24,079) | (24,065) | (14) | ||||||||||||||||
Distributions to investors | (48,506) | (23,277) | (1,150) | ||||||||||||||||
Net loss | (44,898) | (23,248) | (23,248) | (21,355) | (295) | ||||||||||||||
Reallocation of stockholders' equity and noncontrolling interests | 18,539 | 18,539 | (18,539) | ||||||||||||||||
Stockholders' equity, ending balance at Dec. 31, 2023 | $ 471,547 | $ 218,944 | $ 1,569 | $ 39 | $ 2 | $ 43 | $ 226 | $ 0 | $ 373,954 | $ (62,114) | $ (14) | $ (94,761) | $ 221,617 | $ 30,986 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (44,898) | $ (34,030) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 59,041 | 54,595 |
Gain on sale of real estate assets | (24,075) | 0 |
Gain on sale of investments in unconsolidated real estate entities | 0 | (8,129) |
Gain on consolidation of development | (4,225) | 0 |
Share-based compensation | 3,011 | 3,670 |
Deferred taxes | 35 | 7,622 |
Amortization of debt issuance costs, discounts and premiums | 9,342 | 6,668 |
Other operating | 3,222 | (3,814) |
Equity in earnings of unconsolidated real estate entities | (6,466) | (12,393) |
Distributions from unconsolidated real estate entities - return on capital | 4,122 | 14,678 |
Changes in operating assets and liabilities: | ||
Other assets | (6,945) | 2,968 |
Performance participation allocation | 0 | 20,320 |
Performance participation allocation payment | (20,320) | (51,761) |
Accounts payable, accrued expenses and other liabilities | 5,587 | 1,337 |
Net cash (used in) provided by operating activities | (22,569) | 1,731 |
Cash flows from investing activities: | ||
Acquisitions of real estate | 0 | (148,262) |
Cash acquired on consolidation of real estate | 5,807 | 5,649 |
Proceeds from sale of real estate assets, net | 117,771 | 0 |
Settlement of related party notes and liabilities assumed with the CMOF Merger | 0 | (1,469) |
Capital expenditures and development activities | (50,401) | (90,991) |
Investments in unconsolidated real estate entities | (40,885) | (8,943) |
Proceeds from sale of investments in unconsolidated real estate entities | 0 | 28,764 |
Distributions from unconsolidated real estate entities - return of capital | 18,106 | 38,769 |
Contributions to investments in real estate-related loans | (8,777) | 0 |
Proceeds from settlement of investments in real estate-related loans | 0 | 13,000 |
Net cash provided by (used in) investing activities | 41,621 | (163,483) |
Cash flows from financing activities: | ||
Principal payments on mortgage notes | (976) | (1,702) |
Borrowings from revolving credit facility | 111,000 | 175,000 |
Repayments on revolving credit facility | (152,600) | (141,000) |
Borrowings under mortgage notes | 366,963 | 473,534 |
Repayments of mortgage notes | (284,702) | (240,338) |
Deferred financing costs on mortgage notes | (4,704) | (5,071) |
Borrowings from construction loans | 22,066 | 36,569 |
Repayments of construction loans | (37,000) | (59,660) |
Proceeds from issuance of preferred stock | 86,467 | 15,472 |
Redemption of preferred stock | (2,587) | (142,830) |
Offering costs paid on issuance of preferred stock | (10,378) | (1,899) |
Repurchase of unsecured promissory notes | (1,206) | (143) |
Proceeds from issuance of Series A Convertible Preferred Stock | 2,090 | 0 |
Proceeds from issuance of common stock | 27,131 | 168,622 |
Repurchase of common stock/OP Units | (95,404) | (22,635) |
Contributions from noncontrolling interests | 0 | 11,935 |
Distributions to common stockholders | (21,871) | (17,813) |
Distributions to noncontrolling interests - limited partners | (23,233) | (22,198) |
Distributions to noncontrolling interests - partially owned entities | (1,150) | (4,372) |
Net cash (used in) provided by financing activities | (23,763) | 211,886 |
Net (decrease) increase in cash and cash equivalents and restricted cash | (4,711) | 50,134 |
Cash and cash equivalents and restricted cash, beginning of period | 95,524 | 45,390 |
Cash and cash equivalents and restricted cash, end of period | 90,813 | 95,524 |
Reconciliation of cash and cash equivalents and restricted cash to the consolidated balance sheets: | ||
Cash and cash equivalents | 63,800 | 63,173 |
Restricted cash | 27,013 | 32,351 |
Total cash and cash equivalents and restricted cash | 90,813 | 95,524 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 67,357 | 45,183 |
Income taxes paid | 582 | 1,314 |
Supplemental disclosure of non-cash investing and financing activities: | ||
(Decrease) increase in accrued deferred offering costs | (1,387) | 4,791 |
Distributions reinvested in common stock | 2,353 | 2,219 |
Changes in accrued capital expenditures | (6,773) | (4,141) |
Paid-in-kind interest related to construction | 4,293 | 1,762 |
Changes in accrued redemptions | 3,497 | 6,162 |
Preferred interest liability | 15,300 | 0 |
Value of OP Units issued for additional investment in unconsolidated real estate entity | 19,829 | 0 |
Melrose Phase II Acquisition | ||
Supplemental disclosure of non-cash investing and financing activities: | ||
Real estate assets, net of cash acquired | 39,582 | 0 |
Mortgage note | 31,387 | 0 |
Other assets and liabilities assumed, net | (280) | 0 |
Value of OP Units issued for real estate assets | 3,110 | 0 |
805 Riverfront | ||
Supplemental disclosure of non-cash investing and financing activities: | ||
Real estate assets, net of cash acquired | 99,153 | 0 |
Mortgage note | 45,306 | 0 |
Other assets and liabilities assumed, net | (14,907) | 0 |
Preferred interest liability | 15,300 | 0 |
Cottonwood Multifamily Opportunity Fund, Inc. | ||
Supplemental disclosure of non-cash investing and financing activities: | ||
CMOF related party notes assumed | 0 | 1,327 |
Net other liabilities assumed | 0 | 142 |
Cottonwood Ridgeview | ||
Supplemental disclosure of non-cash investing and financing activities: | ||
Real estate assets, net of cash acquired | 0 | 68,167 |
Mortgage note | 0 | 63,795 |
Value of OP Units issued for real estate assets | 0 | 2,930 |
Other assets and liabilities assumed, net | 0 | 642 |
Cottonwood Clermont | ||
Supplemental disclosure of non-cash investing and financing activities: | ||
Mortgage note | 0 | 35,521 |
Convertible Preferred Stock | ||
Cash flows from financing activities: | ||
Distributions to convertible preferred stockholders | (4) | 0 |
Preferred Stock | ||
Cash flows from financing activities: | ||
Offering costs paid on issuance of common stock | (513) | 0 |
Common Stock | ||
Cash flows from financing activities: | ||
Offering costs paid on issuance of common stock | (3,152) | (9,585) |
Repurchase of common stock/OP Units | $ (95,300) | $ (26,900) |
Organization and Business
Organization and Business | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | Organization and Business Cottonwood Communities, Inc. (the “Company,” “we,” “us,” or “our”) invests in a diverse portfolio of multifamily apartment communities and multifamily real estate-related assets throughout the United States. We are externally managed by our advisor, CC Advisors III, LLC (“CC Advisors III”), a wholly owned subsidiary of our sponsor, Cottonwood Communities Advisors, LLC (“CCA”). We were incorporated in Maryland in 2016. We own all of our assets through our operating partnership, Cottonwood Residential O.P., LP (“CROP” or the “Operating Partnership”), and its subsidiaries. We are the sole member of the sole general partner of the Operating Partnership and own general partner interests in the Operating Partnership alongside third party limited partners. Cottonwood Communities, Inc. is a non-listed, perpetual-life, net asset value (“NAV”), real estate investment trust (“REIT”). We qualified as a REIT for U.S. federal income tax purposes beginning with the taxable year ended December 31, 2019. We generally will not be subject to U.S. federal income taxes on our taxable income to the extent we annually distribute all of our net taxable income to stockholders and maintain our qualification as a REIT. We conducted our initial public offering of common stock (the “Initial Offering”) from August 13, 2018 to December 22, 2020, for which we raised gross proceeds of $122.0 million. The Initial Offering ended December 2020. In November 2021, we registered with the SEC an offering of up to $1.0 billion of shares of common stock (the “Follow-on Offering”), consisting of up to $900.0 million in shares of common stock offered in a primary offering (the “Primary Offering”) and $100.0 million in shares under our distribution reinvestment plan (the “DRP Offering”). As of December 31, 2023, we have raised gross proceeds of $203.0 million from the Follow-on Offering, including $4.7 million in proceeds from the DRP Offering. Since November 2019, we have periodically conducted private placement offerings exempt from registration under the Securities Act pursuant to which we have offered for sale to accredited investors preferred stock at a purchase price of $10.00 per share of preferred stock (the “Private Offerings”). As of December 31, 2023, we have raised gross proceeds of $215.5 million from the Private Offerings. Additional information about our preferred stock is included in Note 7 for preferred stock accounted for as liabilities and Note 8 for preferred stock accounted for as equity. We own and operate a diverse portfolio of investments in multifamily apartment communities located in targeted markets throughout the United States. As of December 31, 2023, our portfolio consists of ownership interests or structured investment interests in 37 multifamily apartment communities in 12 states with 10,616 units, including 1,868 units in six multifamily apartment communities in which we have a structured investment interest and another 987 units in four multifamily apartment communities under construction or in lease-up. In addition, we have an ownership interest in four land sites we plan to develop. We operate as one reportable segment comprised of multifamily real estate. Cottonwood Multifamily Opportunity Fund, Inc. Merger On July 8, 2022, we entered into an agreement and plan of merger with Cottonwood Multifamily Opportunity Fund, Inc. (“CMOF”) and its operating partnership (the “CMOF OP”) to merge CMOF with and into our wholly owned subsidiary and the CMOF OP with and into CROP through the exchange of stock-for-stock and units-for-units (the “CMOF Merger”). The CMOF Merger closed on September 27, 2022. CMOF stockholders received 0.8669 shares of our Class A common stock in exchange for each share of their CMOF common stock. We issued 4,335,367 shares of Class A common stock in connection with the CMOF Merger, at an aggregate value of $89.7 million on the close date. In connection with the merger of the CMOF OP with and into CROP, the CMOF OP partnership units outstanding held by third parties were converted into CROP common units at the same ratio as the common stock. CROP was a joint venture partner with CMOF in all three of CMOF’s investments: Park Avenue (a development project), Cottonwood Broadway (a development project) and Block C (a joint venture owning land held for development in two projects called The Westerly and Millcreek North). Following the CMOF Merger, we acquired CMOF’s interest in the joint ventures, increasing our percentage ownership interest as follows: Park Avenue, 100.0%, Cottonwood Broadway, 100.0% and Block C, 79.0%. The three joint venture development projects we acquired additional interests in as a result of the CMOF Merger were already consolidated by us. Refer to Note 3 and Note 10 for more information on Block C. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, the accompanying consolidated financial statements contain all adjustments and eliminations, consisting only of normal recurring adjustments necessary for a fair presentation in conformity with GAAP. Principles of Consolidation The consolidated financial statements include the accounts of the Company and subsidiaries under its control. The Operating Partnership and its subsidiaries are consolidated as they are controlled by CCI. All intercompany balances and transactions have been eliminated in consolidation. Some of our partially owned and unconsolidated properties are owned through a tenant in common (“TIC interest”) structure. TIC interests constitute separate and undivided interests in real property. TIC interests in properties for which we exercise significant influence are accounted for using the equity method of accounting until we have acquired a 100% interest in the property. Number of units and certain other measures used to describe real estate assets included in the notes to the consolidated financial statements are presented on an unaudited basis. Certain amounts in the prior year consolidated financial statements and notes to the consolidated financial statements have been reclassified to conform to the current year presentation. Such reclassifications did not impact previously reported net loss or accumulated deficit or change net cash provided by or used in operating, investing or financing activities. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Variable Interest Entities We invest in entities that qualify as variable interest entities (“VIEs”). All VIEs for which we are the primary beneficiary are consolidated. VIEs for which we are not the primary beneficiary are accounted for under the equity method. A VIE is a legal entity in which the equity investors at risk lack sufficient equity to finance the entity’s activities without additional subordinated financial support or, as a group, the equity investors at risk lack the power to direct the entity’s activities and the obligation to absorb the entity’s expected losses or the right to receive the entity’s expected residual returns. Qualitative and quantitative factors are considered in determining whether we are the primary beneficiary of a VIE, including, but not limited to, which activities most significantly impact economic performance, which party controls such activities, the amount and characteristics of our investments, the obligation or likelihood for us or other investors to provide financial support, and the management relationship of the property. CROP is a VIE as the limited partners lack substantive kick-out rights and substantive participating rights. We are the primary beneficiary of CROP as we have the power to direct the activities that most significantly impact economic performance and the rights to receive economic benefits. Substantially all of our assets and liabilities are held in CROP. In cases where we become the primary beneficiary of a VIE, we recognize a gain or loss for the difference between the sum of (1) the fair value of any consideration paid, the fair value of the noncontrolling interest, and the reported amount of our equity method investment and (2) the net fair value of identifiable assets and liabilities of the VIE. Investments in Real Estate In accordance with Accounting Standards Codification Topic 805, Business Combinations , we determine whether an acquisition qualifies as a business combination or as an asset acquisition. We account for business combinations by recognizing assets acquired and liabilities assumed at their fair values as of the acquisition date and expensing transaction costs. Differences between the transaction price and the fair value of identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree, are accounted for as goodwill, or conversely, as a gain on bargain purchase. Transaction costs are included within general and administrative expenses on our consolidated statements of operations as incurred. We account for asset acquisitions by allocating the total cost to the individual assets acquired and liabilities assumed on a relative fair value basis. Real estate assets and liabilities include land, building, furniture, fixtures and equipment, other personal property, in-place lease intangibles and debt. Asset acquisition accounting is also used when we acquire a controlling interest through the acquisition of additional interests in partially owned real estate. Fair values are determined using methods similar to those used by independent appraisers, and include using replacement cost estimates less depreciation, discounted cash flows, market comparisons, and direct capitalization of net operating income. The fair value of debt assumed is determined using a discounted cash flow analysis based on remaining loan terms and principal. Discount rates are based on management’s estimates of current market interest rates for instruments with similar characteristics, and consider remaining loan term and loan-to-value ratio. The fair value of debt is a present value application which discounts the difference between the remaining contractual and market debt service payments at an equity discount rate. The equity discount rate is an estimated levered return and is calculated using the LTV, unlevered property discount rate, and a market rate. Real Estate Assets, Net We state real estate assets at cost, less accumulated depreciation and amortization. We capitalize costs related to the development, construction, improvement, and significant renovation of properties, which include capital replacements such as scheduled carpet replacement, new roofs, HVAC units, plumbing, concrete, masonry and other paving, pools and various exterior building improvements. We also capitalize salary costs directly attributable to significant renovation work. We compute depreciation on a straight-line basis over the estimated useful lives of the related assets. Intangible lease assets are amortized to depreciation and amortization over the remaining lease term. The useful lives of our real estate assets are as follows (in years): Land improvements 5 - 15 Buildings 30 Building improvements 5 - 15 Furniture, fixtures and equipment 5 - 15 Intangible lease assets Over lease term We expense ordinary maintenance and repairs to operations as incurred. We capitalize significant renovations and improvements that improve and/or extend the useful life of an asset and amortize over their estimated useful life, generally five Impairment of Long-Lived Assets Long-lived assets include real estate assets, acquired intangible assets, and investments in real estate-related loans. Intangible assets are amortized on a straight-line basis over their estimated useful lives. On an annual basis, we assess potential impairment indicators of long-lived assets. We also review for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Indicators that may cause an impairment review include, but are not limited to, significant under-performance relative to historical or projected future operating results and significant market or economic trends. When we determine the carrying value of a long-lived asset may not be recoverable based upon the existence of one or more of the above indicators, we determine recoverability by comparing the carrying amount of the asset to the net future undiscounted cash flows the asset is expected to generate. We recognize, if appropriate, an impairment equal to the amount by which the carrying amount exceeds the fair value of the asset. No impairment losses were recognized for the years ended December 31, 2023 and 2022 related to our long-lived assets. Investments in Unconsolidated Real Estate Entities Real estate investments where we have significant noncontrolling influence and VIEs where we are not the primary beneficiary are accounted for under the equity method. Equity method investments in unconsolidated real estate entities are recorded at cost, adjusted for our share of net earnings or losses each period, and reduced by distributions. Equity in earnings or losses is generally recognized based on our ownership interest in the earnings or losses of the unconsolidated real estate entities. We follow the “look through” approach for classification of distributions from unconsolidated real estate entities in the consolidated statements of cash flows. Under this approach, distributions are reported under operating cash flow unless the facts and circumstances of a specific distribution clearly indicate that it is a return of capital (e.g., a liquidating dividend or distribution of the proceeds from the entity’s sale of assets), in which case it is reported as an investing activity. We assess potential impairment of investments in unconsolidated real estate entities whenever events or changes in circumstances indicate that the fair value of the investment is less than its carrying value. To the extent impairment has occurred, and is not considered temporary, the impairment is measured as the excess of the carrying amount of the investment over the fair value of the investment. No impairment losses were recognized for the years ended December 31, 2023 and 2022 related to our investments in unconsolidated real estate entities. Cash and Cash Equivalents We consider all cash on deposit, money market funds and short-term investments with original maturities of three months or less to be cash and cash equivalents. We maintain cash in demand deposit accounts at several major commercial banks where balances in individual accounts at times exceeds FDIC insured amounts. To reduce the risk associated with the failure of such financial institutions, we periodically evaluate the credit quality of the financial institutions in which we hold deposits. We have not experienced any losses in such accounts. Restricted Cash Restricted cash includes a construction bond, residents’ security deposits, cash in escrow for self-insurance retention, cash in escrow for acquisitions, escrow deposits held by title companies or by lenders for property taxes, insurance, debt service and replacement reserves, and utility deposits. Other Assets Other assets consist primarily of intangible assets acquired in connection with the merger with Cottonwood Residential II, Inc. in May 2021, as well as receivables, interest rate caps, prepaid expenses and related party receivables. Unsecured Promissory Notes The 2017 6% Notes and the 2019 6% Notes are unsecured notes issued to investors outside of the United States. These unsecured promissory notes are described in Note 5 . These instruments are similar in nature, have fixed interest rates and maturity dates, and are denominated in U.S. dollars. Preferred Stock Series 2019 Preferred Stock, Series 2023 Preferred Stock and Series 2023-A Preferred Stock are described in Note 7 . These instruments are similar in nature and are classified as liabilities on the consolidated balance sheet due to the mandatory redemption of these instruments on a fixed date for a fixed amount. Preferred stock distributions for these series of preferred stock are recorded as interest expense. Series A Convertible Preferred Stock is described in Note 8 . These instruments are perpetual preferred stock and classified as equity. The Series A Convertible Preferred Stock is convertible into Class I shares of the Company’s common stock at the option of the shareholder and by the Company, subject to certain terms and conditions, including hold periods. Dividends on this series of preferred stock are recorded as distributions to the preferred stockholder. Debt Financing Costs Debt financing costs are presented as a direct deduction from the carrying amount of the associated debt liability, which includes mortgage notes, unsecured promissory notes, our revolving credit facility and mandatorily redeemable preferred stock. Debt financing costs are amortized over the life of the related liability through interest expense. Revenue Recognition We lease our multifamily residential units with rents generally due on a monthly basis. Terms are generally one year or less, renewable upon consent of both parties on an annual or monthly basis. Rental and other property revenues is recognized in accordance with Accounting Standards Codification (“ASC”) No. 842, Leases (“Topic 842”). Rental and other property revenues consist of rents and other fees charged to tenants and represent 93% of our total revenue for the year ended December 31, 2023. Our non-lease related revenue consists of income earned from our property management, development, asset management and interest income from our investments in real estate-related loans. Property management and development revenue is derived primarily from our property management services, development and construction work, and internet services. Other revenues consists of interest revenue from our investments in real estate-related loans and asset management revenue from CMOF prior to the closing of the CMOF Merger in September 2022. Non-lease revenues are recognized in accordance with Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“Topic 606”) (“ASU 2014-09”), as subsequently amended. The guidance requires that revenue (outside of the scope of Topic 842) is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. Performance Participation Allocation Under the terms of our operating partnership agreement, the Special Limited Partner, an affiliate of our advisor, is entitled to an allocation of CROP’s total return to its capital account. The receipt of the performance participation allocation is subject to the ongoing effectiveness of our advisory agreement and the achievement of certain hurdles. As the performance participation allocation is associated with the performance of a service by the advisor, it is expensed in our consolidated statements of operations. Refer to Note 10 . Income Taxes We elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, beginning with the year ending December 31, 2019. The Company, as a REIT, is not subject to federal income tax with respect to that portion of its income that meets certain criteria and is distributed annually to stockholders. To continue to qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the REIT’s taxable income, excluding net capital gains, to stockholders. We have adhered to, and intend to continue to adhere to, these requirements to maintain REIT status. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income tax on our taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the Internal Revenue Service grants relief under certain statutory provisions. As a qualified REIT, we are still subject to certain state and local taxes and may be subject to federal income and excise taxes on undistributed taxable income. In addition, taxable income from activities managed through our taxable REIT subsidiary (“TRS”) are subject to federal, state and local income taxes. Provision for such taxes has been included in income tax expense on our consolidated statements of operations. CROP is generally not subject to federal and state income taxes. OP Unit holders, including CCI, are subject to tax on their respective allocable shares of CROP’s taxable income. However, there are certain states that require an entity level tax on CROP. We determine deferred tax assets and liabilities applicable to the TRS based on differences between financial reporting and tax bases of existing assets and liabilities. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, only to the extent that it is more likely than not that future taxable profits will be available against which they can be utilized. We recognize interest and penalties relating to uncertain tax positions in income tax expense when incurred. For the year ended December 31, 2023, we had an income tax provision of $0.3 million, of which all but an insignificant amount was current. For the year ended December 31, 2022, we had an income tax provision of $8.0 million, of which $0.4 million was current and $7.6 million was deferred. As of December 31, 2023 and 2022, our net deferred tax liability was $9.8 million and $9.7 million, respectively, and is included in accounts payable, accrued expenses and other liabilities on the consolidated balance sheet. In 2022 we had $37.7 million of net Section 1231 gains allocated to our TRS, primarily from a promote received from an incentive allocation agreement. We recorded deferred tax liabilities of $9.2 million related to these gains in 2022. They are deferred as these Section 1231 gains have been contributed to a Qualified Opportunity Zone fund, which provides tax benefits for development programs located in designated areas. We expect that these deferred tax liabilities will be realized in 2026. Refer to Note 9 . Noncontrolling Interests The portion of ownership interests in consolidated entities not held by CCI are reported as noncontrolling interests. Equity and net income (loss) attributable to CCI and to noncontrolling interests are presented separately on the consolidated financial statements. Changes in noncontrolling ownership interests, are accounted for as equity transactions. Noncontrolling interest – limited partners – These noncontrolling interests represent ownership interest in CROP (“CROP Units”) not held by CCI, the sole member of the general partner. Net income or loss is allocated to these limited partners of CROP based on their ownership percentage. Issuance of additional common stock by CCI or CROP Units to limited partners changes the ownership interests of both CCI and the limited partners of CROP. Consistent with the one-for-one relationship between the CROP Units issued to CCI, limited partners are attributed a share of net income or loss in CROP based on their weighted-average ownership interest in CROP during the period. Noncontrolling interest – partially owned entities – These noncontrolling interests represent ownership interests that are not held by us in consolidated entities. Net income (loss) is allocated to noncontrolling interests in partially owned entities based on ownership percentage in those entities. Refer to Note 11 for more information on our noncontrolling interests. Organization and Offering Costs Organization and offering costs in the Series A Convertible Preferred Offering and Follow-on Offering are recorded as an offset to equity. As of December 31, 2023, we incurred $0.6 million and $17.9 million in total organization and offering costs related to the Series A Convertible Preferred Offering and Follow-on Offering, respectively. Organization and offering costs in the Series 2019 Private Offering, the Series 2023 Private Offering and the Series 2023-A Private Offering are deferred and amortized up to the redemption date through interest expense. We incurred $13.2 million in total organization and offering costs related to the offering of the Series 2019 Preferred Stock, which was fully subscribed and terminated in March 2022. As of December 31, 2023 we incurred $10.4 million and $0.3 million in total organization and offering costs related to the offerings of the Series 2023 Preferred Stock and the Series 2023-A Preferred Stock, respectively. Recent Accounting Pronouncements In August 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-05 " Business Combinations — Joint Venture Formations (Subtopic 805-60) " under which an entity that qualifies as a joint venture is required to apply a new basis of accounting upon the formation of the joint venture. The amendments in ASU 2023-05 require that a joint venture must initially measure its assets and liabilities at fair value on the formation date. ASU 2023-05 is effective for all joint ventures that are formed on or after January 1, 2025 and early adoption is permitted. We do not expect the adoption to have a material impact on our consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which enhances disclosure requirements to segment reporting. ASU No. 2023-07 requires disclosure of incremental segment information on an annual and interim basis and includes the following changes: (i) single segment entities must follow segment guidance, (ii) the title and position of the chief operating decision maker must be named and (iii) the ability to elect more than one performance measure is provided. ASU No. 2023-07 does not change how operating segments are identified, aggregated, or determined. ASU No. 2023-07 is effective beginning in annual periods after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and retrospective adoption is required for all prior periods presented. We do not expect the adoption to have a material impact on our consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which intends to improve the transparency of income tax disclosures. ASU No. 2023-09 is effective for fiscal years beginning after December 15, 2024 and is to be adopted on a prospective basis with the option to apply retrospectively. We are currently assessing the impact of this guidance, however, we do not expect the adoption to have a material impact on our consolidated financial statements. Immaterial Correction to Consolidated Financial Statements During the year ended December 31, 2023, we identified certain misstatements in our statement of cash flows for year ended December 31, 2022, mostly related to non-cash transactions and one correction of improper netting between borrowings and repayments for one financing transaction. Management has considered the errors and concluded they are not material. The following shows the line items as reported and as corrected for the year ended December 31, 2022 (in thousands) along with a description of each immaterial misstatement: Adjustments As Previously Reported Inter Activity Items (1) Accrued Capital Expenditures (2) Capitalized Interest (3) Accrued Redemptions (4) As Corrected Cash flows from operating activities: Adjustments to reconcile net loss to net cash provided by operating activities Other operating (5) $ 7,104 $ (4,250) $ — $ — $ — $ 2,854 Changes in operating assets and liabilities Other assets $ (727) $ 3,695 $ — $ — $ — $ 2,968 Accounts payable and accrued liabilities $ 2,819 $ 555 $ 4,141 $ (16) $ (6,162) $ 1,337 Net cash provided by operating activities $ 3,768 $ — $ 4,141 $ (16) $ (6,162) $ 1,731 Cash flows from investing activities: Capital expenditures and development activities $ (88,628) $ — $ (4,141) $ 1,778 $ — $ (90,991) Net cash used in investing activities $ (161,120) $ — $ (4,141) $ 1,778 $ — $ (163,483) Cash flows from investing activities: Borrowings under mortgage notes and term loans $ 464,373 $ 9,161 $ — $ — $ — $ 473,534 Repayments of mortgage notes and term loans $ (231,177) $ (9,161) $ — $ — $ — $ (240,338) Borrowings under construction loans $ 38,331 $ — $ — $ (1,762) $ — $ 36,569 Repurchase of unsecured promissory notes $ (561) $ — $ — $ — $ 418 $ (143) Proceeds from issuance of common stock $ 170,841 $ (2,219) $ — $ — $ — $ 168,622 Repurchase of common stock/OP Units $ (28,379) $ — $ — $ — $ 5,744 $ (22,635) Distributions to common stockholders $ (20,032) $ 2,219 $ — $ — $ — $ (17,813) Net cash provided by financing activities $ 207,486 $ — $ — $ (1,762) $ 6,162 $ 211,886 Supplemental disclosure of non-cash investing and financing activities: Distributions reinvested in common stock $ — $ 2,219 $ — $ — $ — $ 2,219 Changes in accrued capital expenditures $ — $ — $ (4,141) $ — $ — $ (4,141) Capitalized interest related to construction $ — $ — $ — $ 1,762 $ — $ 1,762 Changes in accrued redemptions $ — $ — $ — $ — $ 6,162 $ 6,162 (1) These items do not impact total cash flows from operating, investing and financing activities. They include separating the fair value of derivatives from other assets, separating the amortization of below market leases from other assets, correcting the improper netting between borrowings and repayments for one financing transaction, and reducing cash from issuance of common stock and distributions to common stockholders for distributions from our distribution reinvestment plan. (2) Noncash accruals for capitalized development costs were not properly excluded from cash outflows for capital expenditures and development activities within investing activities and also was not properly excluded from changes in accounts payable and accrued liabilities. (3) Noncash accrued capitalized interest on development projects was not properly excluded from cash outflows for capital expenditures and development activities in investing activities and borrowings from construction loans in financing activities. (4) Noncash accruals for redemptions were not properly excluded from cash outflows paid for redemptions within financing activities and also were not properly excluded from changes in accounts payable and accrued liabilities. (5) The amount in the table above for other operating within operating cash flows includes $6.7 million related to the amortization of debt issuance costs, discounts and premiums, which has been separated to its own line for the current year presentation. |
Real Estate Assets, Net
Real Estate Assets, Net | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Real Estate Assets, Net | Real Estate Assets, Net The following table summarizes the carrying amounts of our consolidated real estate assets ($ in thousands): December 31, 2023 December 31, 2022 Land $ 257,553 $ 267,876 Building and improvements 1,429,689 1,348,019 Furniture, fixtures and equipment 63,015 54,067 Intangible assets 37,158 40,692 Construction in progress (1) 17,995 106,223 1,805,410 1,816,877 Less: Accumulated depreciation and amortization (156,264) (119,270) Real estate assets, net $ 1,649,146 $ 1,697,607 (1) Includes construction in progress for our development projects and capitalized costs for improvements not yet placed in service at our stabilized properties. Cottonwood Lighthouse Point Transaction On February 14, 2023, we sold tenant-in-common interests in Cottonwood Lighthouse Point to certain unaffiliated third parties for net proceeds of $7.2 million, reducing our ownership from 100% to 86.8%. As a result of this transaction, Cottonwood Lighthouse Point was deconsolidated on February 14, 2023 and our remaining ownership in Lighthouse Point is recorded as an investment in unconsolidated real estate. Refer to Note 4 . We recorded a gain on sale of $1.0 million related to this transaction. Sale of Cottonwood One Upland On December 15, 2023, we sold Cottonwood One Upland for net proceeds of $38.8 million. We recorded a net gain on sale of $23.0 million. 805 Riverfront Consolidation We have a preferred equity investment in 805 Riverfront, a multifamily development project located in West Sacramento, CA (the “Riverfront Project”). On September 8, 2023, the sponsor of the Riverfront Project was removed as the manager and developer due to events of default, whereupon we became the manager and replacement developer with control of the project. Prior to this event, our preferred equity investment was accounted for as an equity method investment. The entity controlling the Riverfront Project is a variable interest entity (“VIE”). When we consolidate a VIE that is not a business, a gain or loss is recognized for the difference between the sum of (1) the fair value of any consideration paid, the fair value of the noncontrolling interest, and the reported amount of our previous interest and (2) the net fair value of identifiable assets and liabilities of the VIE. For 805 Riverfront, no consideration was paid and the fair value of the noncontrolling interest on the date of consolidation was zero. We recorded a gain of $4.2 million as follows (in thousands): Description Amounts Reported amount of previous interest Equity method investment (1) $ 28,679 Fair value of assets and liabilities Real estate assets $ 103,378 Restricted cash 5,039 Other assets 400 Accounts payable, accrued expenses and other liabilities (15,307) Preferred interest (2) (15,300) Construction loans, net (45,306) Total net fair value of identifiable assets and liabilities of the VIE 32,904 Gain on consolidation $ 4,225 (1) We provided an additional investor capital contribution of $6.0 million for the Riverfront Project with the change of control. (2) A third party has a preferred equity investment in the Riverfront Project that is mandatorily redeemable. This investment accrues interest at 11.5% (subject to a minimum multiple of 1.35x), and has an initial maturity date of May 31, 2024 with two one Asset Acquisitions The following table summarizes the purchase price allocation of the real estate assets acquired during the year ended December 31, 2023 (in thousands): Allocated Amounts Property Location Date Consolidated Building Land Land Improvements Personal Property Lease Intangibles Debt Fair Value Adjustment Total Melrose Phase II Nashville, TN 8/2/23 $ 32,115 $ 5,156 $ 248 $ 1,021 $ 1,043 $ 1,013 $ 40,596 Melrose Phase II was consolidated in August 2023 when we issued 175,077 operating partnership units in CROP (“OP Units”) to acquire the remaining 20.2% tenant-in-common interests in the property. The value of the OP Units was $3.1 million. Melrose Phase II was previously accounted for as an equity method investment. The following table summarizes the purchase price allocation of the real estate assets acquired or consolidated during the year ended December 31, 2022 (in thousands): Allocated Amounts Property Location Date Consolidated Building Land Land Improvements Personal Property Lease Intangibles Debt Fair Value Adjustment Total Cottonwood Lighthouse Point Pompano Beach, FL 6/22/22 $ 76,322 $ 13,647 $ 1,843 $ 2,011 $ 1,783 $ — $ 95,606 Cottonwood Ridgeview Plano, TX 9/19/22 54,337 9,275 2,548 835 1,603 1,504 70,102 Cottonwood Clermont Clermont, FL 9/21/22 67,400 5,705 5,744 1,817 1,792 3,428 85,886 $ 198,059 $ 28,627 $ 10,135 $ 4,663 $ 5,178 $ 4,932 $ 251,594 The acquisition of Cottonwood Lighthouse Point in June 2022 was funded with debt of $48.0 million and available cash. See also the “Cottonwood Lighthouse Point Transaction” discussion above and Note 4 for further information. Cottonwood Ridgeview was consolidated when we issued 141,543 OP Units to acquire the remaining 9.5% tenant-in-common interests in the property in September 2022. The value of the OP Units was $2.9 million on the close date based on the net asset value of OP Units as of August 31, 2022. Cottonwood Ridgeview was previously accounted for as an equity method investment. The acquisition of Cottonwood Clermont in September 2022 was funded through an assumed loan of $35.5 million and available cash, including Section 1031 exchange proceeds from the sale of 3800 Main in June 2022 (3800 Main was previously an equity method investment prior to its sale). In asset acquisitions, assets and liabilities are recorded at relative fair value. The weighted-average amortization period for the intangible lease assets acquired in connection with these acquisitions is 0.5 years. Galleria Land Purchase On September 20, 2022, we acquired 26 acres of land for future development in Murray, Utah for $28.5 million. Block C On June 28, 2022, Block C, an early-stage development joint venture with CMOF, was recapitalized. Block C originally owned land for the development of two projects called The Westerly and Millcreek North. Entities affiliated with us and our advisor contributed capital to the joint venture and were admitted as members. We contributed additional funds to obtain a controlling interest in June 2022 and consolidated the joint venture, which had previously been recorded as an equity method investment. In September 2022, we acquired CMOF’s interest in Block C as a result of the CMOF Merger. In April 2023, we merged another consolidated development project called The Archer into Block C. Interests in Block C not held by us are recorded as noncontrolling interest. Refer to Note 1 and Note 10 for further information on Block C. CMOF Merger The acquisition of an additional ownership interest of a consolidated entity is accounted for as an equity transaction. We acquired additional interests in three development projects with the CMOF Merger in September 2022. These projects were already consolidated by us. Accordingly, noncontrolling interest was reduced by the carrying amount attributable to CMOF’s ownership in the three development projects and the difference between the carrying amount of the noncontrolling interest and the consideration paid was recorded as an adjustment to our equity through additional paid-in capital as follows (in thousands, except share and per share data): 2022 Consideration CMOF Merger Common stock issued and outstanding 5,001,000 Exchange ratio 0.8669 CCI common stock issued as consideration 4,335,367 Per share value of CCI Common Stock $ 20.7007 Fair value of CCI Common Stock issued $ 89,745 Fair value of OP Units issued 8,273 Settlement of CMOF related party notes and interest 1,327 Settlement of net other liabilities of CMOF 142 Total consideration $ 99,487 2022 Change in equity CMOF Merger Carrying amount of noncontrolling interest $ 49,178 Total consideration 99,487 Additional paid in capital adjustment $ (50,309) Fair value of CCI Common Stock issued $ 89,745 Additional paid in capital adjustment (50,309) Total change in equity $ 39,436 |
Investments in Unconsolidated R
Investments in Unconsolidated Real Estate | 12 Months Ended |
Dec. 31, 2023 | |
Real Estate [Abstract] | |
Investments in Unconsolidated Real Estate Entities | Investments in Unconsolidated Real Estate Entities Our investments in unconsolidated real estate entities consist of ownership interests in stabilized properties and preferred equity investments as follows as of December 31, 2023 and 2022 (in thousands): Balance at December 31, Property / Development Location % Owned 2023 2022 Stabilized Properties Alpha Mill (1) (2) Charlotte, NC 73.7% (2) 29,522 10,470 Cottonwood Bayview (1) St. Petersburg, FL 71.0% 11,817 30,792 Cottonwood Lighthouse Point (1) (3) Pompano Beach, FL 86.8% (3) 38,852 — Fox Point (1) Salt Lake City, UT 52.8% 13,533 14,794 Toscana at Valley Ridge (1) Lewisville, TX 58.6% 6,713 9,382 Melrose Phase II (1) (4) Nashville, TN 100.0% (4) — 6,185 Preferred Equity Investments Lector85 Ybor City, FL 11,387 10,006 Astoria West (formerly Vernon) Queens, NY 23,406 20,567 805 Riverfront (5) West Sacramento, CA (5) — 20,259 417 Callowhill Philadelphia, PA 38,028 9,949 Infield Kissimmee, FL 11,942 — Other 516 803 Total $ 185,716 $ 133,207 (1) We account for our tenant in common interests in these properties as equity method investments. Refer to Note 2 . (2) On March 31, 2023, we issued 1,063,293 OP Units for an additional 45.4% tenant-in-common interests in Alpha Mill, increasing our ownership to 73.7%. The value of the OP Units on the close date was $19.8 million based on the net asset value of OP Units as of February 28, 2023. All of the tenant-in-common interests were purchased at the same price. One of the sellers was a related party. (3) On February 14, 2023, we sold 13.2% of our ownership interest in Cottonwood Lighthouse Point for net proceeds of $7.2 million and we recorded a gain on sale of $1.0 million related to the transaction, which reduced our remaining ownership in Cottonwood Lighthouse Point to 86.8%. As a result of this transaction, Cottonwood Lighthouse Point was deconsolidated and is recorded as an investment in unconsolidated real estate from February 14, 2023. (4) On August 2, 2023, we issued 175,077 OP Units to acquire the remaining 20.2% tenant-in-common interests in Melrose Phase II, bringing our ownership to 100% and resulting in the consolidation of the property from that date onward. The value of the OP Units issued was $3.1 million. (5) 805 Riverfront was consolidated due to a change in control as described in Note 3 . On the date of consolidation our equity method investment was $22.6 million. Equity in losses for our stabilized properties for the year ended December 31, 2023 was $5.4 million. Equity in earnings for our stabilized assets for the year ended December 31, 2022 was $3.6 million. During February 2023, we received $16.9 million and $1.2 million in distributions as a return of capital from debt refinances at Cottonwood Bayview and Toscana at Valley Ridge, respectively. The following is a summary of certain balance sheet and operating data for our stabilized properties ($ in thousands): Operating data: 2023 - For the Period Held as Equity Method Investments 2022 - For the Period Held as Equity Method Investments Total revenues $ 32,373 $ 35,514 Total operating expenses 13,532 14,258 Total other expenses (26,086) (18,871) Net income (loss) (7,245) 2,385 Balance sheet data: December 31, 2023 December 31, 2022 Real estate assets $ 362,157 $ 309,404 Cash and cash equivalents 3,581 4,270 Total assets 374,392 319,734 Mortgage notes, net 235,343 193,939 Total liabilities 240,185 197,365 The increase in other expenses is primarily due to higher mortgage interest, depreciation expense, and the change in the fair market value of derivatives. Our preferred equity investments are development projects with liquidation rights and priorities that are different from ownership percentages. As such, equity in earnings is determined using the hypothetical liquidation book value (“HLBV”) method. Income or loss is recorded based on changes in what would be received should the entity liquidate all of its assets (as valued in accordance with GAAP) and distribute the resulting proceeds based on the terms of the respective agreements. The HLBV method is a balance sheet focused approach commonly applied to equity investments where cash distribution percentages vary at different points in time and are not directly linked to an equity holder’s ownership percentage. Equity in earnings for our preferred equity investments for the years ended December 31, 2023 and 2022 were $11.9 million and $8.8 million, respectively. On November 3, 2023, we entered into an agreement to provide a junior preferred equity investment for an amount of $11.4 million (the “Infield Investment”) and we fully funded the investment on the same day. The Infield Investment accrues a preferred return of 16.75% per annum, compounded monthly. The borrower intends to use the proceeds from the Infield Investment to fund cost overruns in order to complete the development of the Infield Apartments, a 384-unit multifamily project located in Kissimmee, Florida, a suburb of Orlando. During the year ended December 31, 2023, we funded $23.4 million towards the 417 Callowhill preferred equity investment. As of December 31, 2023 we have funded $32.1 million in total towards the 417 Callowhill preferred equity investment and had a remaining commitment of $1.3 million. As of December 31, 2023, we have fully funded our commitments on the Lector85, Astoria West and Infield preferred equity investments. Our 805 Riverfront preferred equity method investment was fully funded prior to the change of control event in September 2023. Refer to Note 3 . |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Mortgage Notes and Revolving Credit Facility The following table is a summary of the mortgage notes and revolving credit facility secured by our properties as of December 31, 2023 and 2022 ($ in thousands): Principal Balance Outstanding Indebtedness Weighted-Average Interest Rate Weighted-Average Remaining Term (1) December 31, 2023 December 31, 2022 Fixed rate loans Fixed rate mortgages 4.46% 5.1 Years $ 891,319 $ 528,308 Total fixed rate loans 891,319 528,308 Variable rate loans (2) Floating rate mortgages 5.45% (3) 6.9 Years 131,153 426,130 Variable rate revolving credit facility (4) 7.96% 4.0 Years 12,400 54,000 Total variable rate loans 143,553 480,130 Total secured loans 1,034,872 1,008,438 Unamortized debt issuance costs (7,067) (4,878) Premium on assumed debt, net (5,353) (3,423) Mortgage notes and revolving credit facility, net $ 1,022,452 $ 1,000,137 (1) For loans where we have the ability to exercise extension options at our own discretion, the maximum maturity date has been assumed. (2) The interest rates of our variable rate loans are based on 30-Day Average SOFR or one-month SOFR (CME Term). (3) Includes the impact of interest rate caps in effect on December 31, 2023. (4) Our variable rate revolving credit facility was amended and restated on December 15, 2023 when One Upland was sold and removed as collateral. The facility remains secured by Parc Westborough with the option to add another property as collateral by December 14, 2024. The interest rate on the amended facility is one-month SOFR + 2.60% and the maturity date was reset to a three one During 2023, we completed debt refinances on seven of our consolidated properties and converted certain variable rate loans to fixed rate loans, and we also amended our variable rate revolving credit facility when One Upland was sold in December 2023. Fixed rate mortgages as of December 31, 2023 includes the Melrose Phase II mortgage, which was consolidated August 2023. Floating rate mortgages as of December 31, 2023 excludes Cottonwood Lighthouse Point, which was deconsolidated in February 2023. See Note 3 and Note 4 above for additional discussion related to the Melrose Phase II and Cottonwood Lighthouse Point transactions. We are in compliance with all covenants associated with our mortgage notes and revolving credit facility as of December 31, 2023. Construction Loans Information on our construction loans are as follows ($ in thousands): Development Interest Rate Final Expiration Date Loan Amount Amount Drawn at Amount Drawn at Park Avenue (1) (1) (1) $ — $ 37,000 Cottonwood Broadway One-Month BSBY (2) + 2.9% May 15, 2025 44,625 41,891 39,728 Cottonwood Highland 30-Day Average SOFR + 2.55% May 1, 2029 44,250 39,790 18,599 805 Riverfront (3) One-Month SOFR + 4.35% May 30, 2026 55,400 48,310 — The Westerly (4) One-Month SOFR + 3.0% July 12, 2028 42,000 — — $ 186,275 $ 129,991 $ 95,327 (1) The Park Avenue construction loan was refinanced in March 2023 with a $43.5 million fixed rate mortgage which matures in 2028 and is included in mortgage notes above. (2) The Bloomberg Short-Term Yield Index (“BSBY”) will cease as an index after November 15, 2024. We expect the Broadway loan will be refinanced in 2024 before the cessation of BSBY, although there are provisions in the Broadway loan documents for a conversion to Term SOFR if needed. (3) 805 Riverfront was consolidated in September 2023. Refer to Note 3 . (4) In July 2023, we entered into a construction loan agreement for The Westerly, a development project in Millcreek, UT. Construction is expected to be completed in 2026. No amounts have been drawn on the construction loan as of December 31, 2023. Unsecured Promissory Notes, Net CROP issued notes to foreign investors outside of the United States. These notes are unsecured and subordinate to all of CROP’s debt. Each note has extension options, at our discretion, during which the interest rate will increase 0.25% each year. Information on our unsecured promissory notes are as follows ($ in thousands): Offering Size Interest Rate Maturity Date (1) (2) Maximum Extension Date December 31, 2023 December 31, 2022 2017 6% Notes (1) $ 35,000 6.25% December 31, 2024 (1) December 31, 2024 $ 20,308 $ 20,718 2019 6% Notes (2) 25,000 6.00% December 31, 2024 (2) December 31, 2025 21,575 22,235 $ 60,000 $ 41,883 $ 42,953 (1) We exercised the option to extend the maturity date on our 2017 6% Notes for one final year to December 31, 2024, which increased the interest rate to 6.5% for the period from January 1, 2024 to December 31, 2024. (2) We exercised the option to extend the maturity date on our 2019 6.0% Notes for one additional year to December 31, 2024, which increased the interest rate to 6.25% for the period from January 1, 2024 to December 31, 2024. The aggregate maturities, including amortizing principal payments on our debt for years subsequent to December 31, 2023 are as follows (in thousands): Year Mortgage Notes and Revolving Credit Facility Construction Loans Unsecured Total 2024 (1) $ 466 $ 90,201 $ 41,883 $ 132,550 2025 1,405 — — 1,405 2026 105,527 — — 105,527 2027 364,181 — — 364,181 2028 72,468 — — 72,468 Thereafter 490,825 39,790 — 530,615 $ 1,034,872 $ 129,991 $ 41,883 $ 1,206,746 (1) Of the amounts maturing in 2024, $21.6 million relates to our 2019 6% Unsecured Promissory Notes, which can be extended to December 31, 2025. An additional $41.9 million relates to the construction loan for Cottonwood Broadway, which can be extended to May 15, 2025, subject to the satisfaction of certain conditions, and $48.3 million relates to the construction loan for 805 Riverfront, which can be extended for two one |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We estimate the fair value of our financial instruments using available market information and valuation methodologies we believe to be appropriate. As of December 31, 2023 and 2022, the fair values of cash and cash equivalents, restricted cash, other assets, related party payables, and accounts payable, accrued expenses and other liabilities approximate their carrying values due to the short-term nature of these instruments. Fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. Fair value measurements are categorized into one of three levels of the fair value hierarchy based on the lowest level of significant input used. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Considerable judgment and a high degree of subjectivity are involved in developing these estimates. These estimates may differ from the actual amounts that we could realize upon settlement. The fair value hierarchy is as follows: Level 1 - Quoted (unadjusted) prices in active markets for identical assets or liabilities. Level 2 - Other observable inputs, either directly or indirectly, other than quoted prices included in Level 1, including: • Quoted prices for similar assets/liabilities in active markets; • Quoted prices for identical or similar assets/liabilities in non-active markets (e.g., few transactions, limited information, non-current prices, high variability over time); • Inputs other than quoted prices that are observable for the asset/liability (e.g., interest rates, yield curves, volatilities, default rates); and • Inputs that are derived principally from or corroborated by other observable market data. Level 3 - Unobservable inputs that cannot be corroborated by observable market data. The table below includes the carrying value and fair value for our financial instruments for which it is practicable to estimate fair value (in thousands): As of December 31, 2023 As of December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value Financial Asset: Investments in real estate-related loans $ 8,703 $ 8,777 $ — $ — Financial Liability: Fixed rate mortgages $ 891,319 $ 869,248 $ 528,308 $ 509,134 Floating rate mortgages $ 131,153 $ 129,540 $ 426,130 $ 421,189 Variable rate revolving credit facility $ 12,400 $ 12,400 $ 54,000 $ 54,000 Construction loans $ 129,991 $ 129,991 $ 95,327 $ 95,327 Series 2019 Preferred Stock $ 124,266 $ 124,266 $ 127,065 $ 127,065 Series 2023 Preferred Stock $ 83,567 $ 83,567 $ — $ — Series 2023-A Preferred Stock $ 2,850 $ 2,850 $ — $ — Preferred interest liability $ 15,300 $ 15,300 $ — $ — Unsecured promissory notes, net $ 41,883 $ 41,883 $ 42,953 $ 42,953 All financial instruments in the table above are categorized as Level 2 in the fair value hierarchy. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Preferred Stock | Preferred Stock We have three classes of preferred stock outstanding as of December 31, 2023: Series 2019, Series 2023, and Series 2023-A that are accounted for as liabilities on the consolidated balance sheets as they are mandatorily redeemable. Each class of preferred stock receives a fixed preferred dividend based on a cumulative, but not compounded, annual return. The Series 2019 and Series 2023 Preferred Stock each have a fixed redemption date with extension options at our discretion, subject to an increase in the preferred dividend rate. We can also redeem our preferred stock early for cash plus all accrued and unpaid dividends. The Series 2019, Series 2023 and Series 2023-A Preferred Stock rank senior to our common stock and convertible preferred stock and on parity with each other with respect to distribution rights and rights upon liquidation, dissolution or winding up. Information on these classes of preferred stock as of December 31, 2023 and 2022 is as follows: Dividend Rate Extension Dividend Rate Redemption Date Maximum Extension Date Shares Outstanding at December 31, 2023 December 31, 2022 Series 2019 Preferred Stock 5.5% 6.0% December 31, 2024 (1) December 31, 2025 12,426,596 12,706,485 Series 2023 Preferred Stock 6.0% 6.5% (2) June 30, 2027 June 30, 2029 8,356,724 — Series 2023-A Preferred Stock 7.0% N/A December 31, 2027 N/A 285,000 — (1) Prior to the original December 31, 2023 redemption date, we exercised our first extension option for the Series 2019 Preferred Stock, which increased the dividend rate to 6.0% and extended the redemption date to December 31, 2024. (2) Represents the fully extended dividend rate. During the first-year extension the dividend rate is 6.25%. The offering of Series 2023 Preferred Stock commenced in December 2022 and is ongoing, with our first shares issued in early 2023. The offering of Series 2023-A Preferred Stock commenced in July 2023, and is ongoing, with our first shares issued in August 2023. During the year ended December 31, 2023, we issued $83.6 million of Series 2023 Preferred Stock and we issued $2.9 million of Series 2023-A Preferred Stock. We issued the remaining $15.5 million of Series 2019 Preferred Stock in the first quarter of 2022, whereupon the offering of our Series 2019 Preferred Stock was fully subscribed and terminated in March 2022 having launched in November 2019. During the year ended December 31, 2023, we incurred $3.2 million in dividends on our Series 2023 Preferred Stock and we incurred $0.1 million in dividends on our Series 2023-A Preferred Stock. During both the years ended December 31, 2023 and 2022, we incurred $6.9 million in dividends on our Series 2019 Preferred Stock. During 2022, we incurred $2.9 million in dividends on our Series 2016 Preferred Stock prior to their full redemption in April 2022 and we incurred an insignificant amount in dividends on our Series 2017 Preferred Stock prior to their full redemption at the end of January 2022. During the year ended December 31, 2023, we repurchased 279,889 shares of Series 2019 Preferred stock for $2.7 million and we repurchased 5,000 shares of Series 2023 Preferred Stock for $45.0 thousand. No shares of our Series 2023-A Preferred Stock were repurchased during 2023. During the year ended December 31, 2022, we repurchased 27,000 shares of Series 2019 Preferred Stock for $0.3 million. Additionally, we fully redeemed our Series 2017 Preferred Stock at the end of January 2022 for $2.6 million and we fully redeemed our Series 2016 Preferred Stock in April 2022 for $139.8 million. The Series 2017 Preferred Stock and the Series 2016 Preferred Stock were designated and issued in connection with the Company’s merger with Cottonwood Residential II, Inc. in May 2021. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Convertible Preferred Stock In September 2023, we designated the Series A Convertible Preferred Stock (“Convertible Preferred Stock”). The Convertible Preferred Stock is accounted for as a class of stockholder’s equity. The holders of Convertible Preferred Stock receive monthly cash dividends at the rate of 8.0% per annum of $10.00 per share when and as authorized by the board of directors and declared by the Company. The board of directors may increase the dividend rate from time to time in its sole discretion. Subject to certain terms and conditions, the Convertible Preferred Stock is convertible into Class I shares of the Company’s common stock in an amount equal to the purchase price divided by the net asset value for the Class I shares at the time of conversion. The Convertible Preferred Stock is being offered for sale pursuant to a private offering to accredited investors only. The Series A Convertible Preferred Stock ranks senior to the Company’s common stock and junior to the Series 2019, the Series 2023, and the Series 2023-A Preferred Stock with respect to dividend rights and rights upon voluntary or involuntary liquidation, dissolution or winding up of the Company. As of December 31, 2023, there were 215,277 shares of the Convertible Preferred Stock issued and outstanding. We incurred an insignificant amount in dividends on our Convertible Preferred Stock in 2023 as the first shares of Convertible Preferred Stock were issued in November 2023. Common Stock The following table summarizes the changes in the shares outstanding for each class of outstanding common stock for the periods presented below: Class T D I A TX Total Balance at December 31, 2021 — — 151,286 23,445,174 17,520 23,613,980 Issuance of common stock 4,814,430 64,645 3,579,515 — — 8,458,590 Distribution reinvestment 10,832 28 8,334 93,768 13 112,975 Exchanges and transfers (1) — — 280,889 17,533 (17,533) 280,889 CMOF Merger — — — 4,335,367 — 4,335,367 Repurchases of common stock (10,140) — (158,975) (1,286,978) — (1,456,093) Balance at December 31, 2022 4,815,122 64,673 3,861,049 26,604,864 — 35,345,708 Issuance of common stock 644,374 148,629 650,383 — — 1,443,386 Distribution reinvestment 31,289 682 24,344 74,304 — 130,619 Exchanges and transfers (1) (1,723) — 480,749 — — 479,026 Repurchases of common stock (1,571,844) (11,241) (720,082) (3,447,291) — (5,750,458) Balance at December 31, 2023 3,917,218 202,743 4,296,443 23,231,877 — 31,648,281 (1) Exchanges represent the number of shares OP Unit holders have exchanged for Class I shares during the period. In 2023, transfers represent Class T shares that were converted to Class I shares during the period. During 2022, transfers represent Class TX shares that were converted to Class A shares, after which we no longer had any Class TX shares outstanding. Common Stock Distributions Distributions on our common stock are determined by the board of directors based on our financial condition and other relevant factors. Common stockholders may choose to receive cash distributions or purchase additional shares through our distribution reinvestment plan. For the year ended December 31, 2023, we paid aggregate distributions of $24.2 million, including $21.9 million distributions paid in cash and $2.4 million of distributions reinvested through our distribution reinvestment plan. For the year ended December 31, 2022, we paid aggregate distributions of $20.0 million, including $17.8 million distributions paid in cash and $2.2 million of distributions reinvested through our distribution reinvestment plan. Distributions are declared monthly for each share of our common stock. Distributions declared were at a monthly rate of $0.0583333, or $0.70 annually, per common share for January 2022; were at a monthly rate of $0.05916667, or $0.71 annually, per common share for February, March and April 2022; were at a monthly rate of $0.06000000, or $0.72 annually, per common share for May 2022; and were at a monthly rate of $0.06083333, or $0.73 annually, per common share for each month in the months from June 2022 through December 2023. For the years ended December 31, 2023 and 2022, 100% (unaudited) of distributions to stockholders were reported as a return of capital or, to the extent they exceed a stockholder’s adjusted tax basis, as gains from the sale or exchange of property. Repurchases During the year ended December 31, 2023, we repurchased 5,750,458 shares of common stock pursuant to our share repurchase program for $95.3 million, at an average repurchase price of $16.57. During the year ended December 31, 2022, we repurchased 1,456,093 shares of common stock pursuant to our share repurchase program for $26.9 million, at an average repurchase price of $18.47. |
Promote from Incentive Allocati
Promote from Incentive Allocation Agreement | 12 Months Ended |
Dec. 31, 2023 | |
Promote from Incentive Allocation Agreement [Abstract] | |
Promote from Incentive Allocation Agreement | Promote from Incentive Allocation Agreement In 2018, CROP sold a portfolio of 12 properties to an unrelated real estate firm, retaining management of the portfolio on behalf of the real estate firm. Under the sales arrangement, CROP entered into an incentive allocation agreement that entitled CROP to participate in distributions from the portfolio should returns exceed certain amounts. During the first quarter of 2022, the real estate firm sold this portfolio of properties. Our TRS realized a promote distribution of $30.6 million from the sale. As a result of the sale, we no longer manage this portfolio. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions Advisor Compensation CC Advisors III manages our business as our external advisor and, under the terms of our advisory agreement, performs certain services for us, including the identification, evaluation, negotiation, origination, acquisition and disposition of investments; and the management of our business. These activities are all subject to oversight by our board of directors. Our advisor is entitled to receive fees and compensation for services provided as mentioned below. Management Fee . CROP pays our advisor a monthly management fee equal to 0.0625% of GAV (gross asset value of CROP, calculated pursuant to our valuation guidelines and reflective of the ownership interest held by CROP in such gross assets), subject to a cap. Through September 19, 2023, the cap was equal to 0.125% of net asset value of CROP. Effective September 19, 2023, the cap was amended to be based on “adjusted net asset value”, which is defined to include the value attributable to preferred stock that is convertible into common equity in the calculation of net asset value of CROP. Management fees to our advisor for the years ended December 31, 2023 and 2022 were $17.3 million and $17.8 million, respectively. Acquisition Expense Reimbursement. We reimburse our advisor for out-of-pocket expenses in connection with the selection, evaluation, structuring, acquisition, financing and development of investments, whether or not such investments are acquired, and make payments to third parties or possibly certain of our advisor’s affiliates in connection with providing services to us. There were no acquisition expense reimbursements for the years ended December 31, 2023 and 2022. Performance Participation Allocation. In addition to the fees paid to our advisor for services provided pursuant to the advisory agreement, CC Advisors - SLP, LLC, an affiliate of our advisor and the Special Limited Partner at CROP, holds a performance participation interest in CROP that entitles it to receive an allocation of CROP’s total return to its capital account. The performance participation allocation is an incentive fee indirectly paid to our advisor and receipt of the allocation is subject to the ongoing effectiveness of the advisory agreement. As the performance participation allocation is associated with the performance of a service by the advisor, it is expensed in our consolidated statements of operations. Total return is defined as all distributions accrued or paid (without duplication) on Participating Partnership units (all units in CROP with the exception of preferred units and the Special Limited Partner Interest) plus the change in the aggregate net asset value of such Participating Partnership units. The annual total return will be allocated solely to the Special Limited Partner only after the other unit holders have received a total return of 5% (after recouping any loss carryforward amount) and such allocation will continue until the allocation between the Special Limited Partner and all other unit holders is equal to 12.5% and 87.5%, respectively. Thereafter, the Special Limited Partner will receive an allocation of 12.5% of the annual total return. The performance participation allocation is ultimately determined at the end of each calendar year, accrues monthly and will be paid in cash or Class I units at the election of the Special Limited Partner after the completion of each calendar year. Due to the decrease in net asset value, no performance participation allocation was incurred during the year ended December 31, 2023. During the year ended December 31, 2022, we recognized $20.3 million of expense for the performance participation allocation as a result of the increase in the value of our net assets and dividends paid to stockholders, which was paid in cash during the first quarter of 2023. Block C We, through our indirect subsidiaries, have a joint venture investment in Block C for the purpose of developing three multifamily development projects near Salt Lake City, Utah: The Westerly, Millcreek North, and The Archer. As of December 31, 2023, entities affiliated with us and our advisor (the “Affiliated Members”) have made aggregate capital contributions of $10.9 million towards the joint venture. The Affiliated Members are owned directly or indirectly by our officers or directors, as well as certain employees of CROP and our advisor or its affiliates. The Affiliated Members participate in the economics of Block C on the same terms and conditions as us. The development projects are located in an Opportunity Zone, which provides tax benefits for development programs located in designated areas as established by Congress in the Tax Cuts and Jobs act of 2017. As of December 31, 2023, our ownership in the Block C joint venture was 82.4%. Reimbursable Operating Expenses Our advisor must reimburse us the amount by which our aggregate total operating expenses for the four fiscal quarters then ended exceed the greater of 2% of our average invested assets or 25% of our net income, unless the conflicts committee has determined that such excess expenses were justified based on unusual and non-recurring factors. Our conflicts committee determined that no reimbursement was required as of December 31, 2023 and 2022. Alpha Mill Transaction On April 7, 2022, we sold a 10.3% interest in Alpha Mill to a trust established by the father of Chad Christensen, one of our directors and Executive Chairman, and Gregg Christensen, our Chief Legal Officer and Secretary (the “Christensen Trust”) for $8.2 million. Independent Director Compensation |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2023 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Noncontrolling Interests - Limited Partners Common Limited OP Units and LTIP Units are OP units not owned by us and collectively referred to as “Noncontrolling Interests – Limited Partners.” Common Limited OP Units - Common Limited OP Units share in the profits, losses and cash distributions of CROP as defined in the partnership agreement, subject to certain special allocations and receive distributions equivalent to distributions declared to the holders of CCI common stock. During the years ended December 31, 2023 and 2022, we paid aggregate distributions to noncontrolling OP Unit holders of $23.2 million and $22.2 million, respectively. LTIP Units - Certain executives, directors and key employees receive LTIP Units in CROP as equity incentive compensation. LTIP Units are a separate series of limited partnership units, which are convertible into Common Limited OP Units upon achieving certain time vesting and performance requirements. Unless otherwise provided, the time vesting LTIP Units (whether vested or unvested) entitle the holder to receive current distributions from CROP, and the performance LTIP Units (whether vested or unvested) entitle the holder to receive 10% of the current distributions from CROP during the applicable performance period. When the LTIP Units have vested and sufficient income has been allocated to the holder of the vested LTIP Units, the LTIP Units will automatically convert to Common Limited OP Units in CROP on a one-for-one basis. LTIP Units constitute profits interests and have no voting rights in CROP. As of December 31, 2023, there were 602,895 unvested time LTIP awards and 597,105 unvested performance LTIP awards outstanding. Share-based compensation, included within other in the consolidated statement of stockholders’ equity, was $2.8 million and $3.7 million for the years ended December 31, 2023 and 2022, respectively. Total unrecognized compensation expense for LTIP Units at December 31, 2023 is $5.5 million and is expected to be recognized on a straight-line basis through December 2026. Noncontrolling Interests - Partially Owned Entities As of December 31, 2023, noncontrolling interests in entities not wholly owned by us ranged from 1% to 63%, with the average being 11%. In June 2022, Block C was recapitalized. We contributed additional funds and obtained a controlling interest and consolidated the Block C joint venture, recording the Block C membership interests owned by CMOF and Affiliated Members at that time as noncontrolling interests. Upon recapitalization, additional noncontrolling interests were recorded with the Affiliated Members contribution to The Archer, an entity that was already consolidated. With the CMOF Merger in September 2022, we acquired the noncontrolling interest in Cottonwood Broadway, Park Ave, and Block C that were previously owned by CMOF. The remaining portion of Block C not owned by us continues to be recorded as noncontrolling interest. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 417 Callowhill As of December 31, 2023, we had funded $32.1 million and had a remaining commitment of $1.3 million on the 417 Callowhill preferred equity investment. 2215 Hollywood As of December 31, 2023, we had funded $2.0 million and had a remaining commitment of $8.0 million on the 2215 Hollywood Mezzanine Loan. Monrovia Station As of December 31, 2023, we had funded $6.8 million and had a remaining commitment of $13.4 million on the Monrovia Station Junior Mezzanine Loan. Economic Dependency We are dependent on our advisor and its affiliates and the dealer manager for certain services that are essential to us, including the sale of our shares in our public and private offering; the identification, evaluation, negotiation, origination, acquisition and disposition of investments; management of the daily operations of our investment portfolio; and other general and administrative responsibilities. In the event that these companies are unable to provide the respective services, we will be required to obtain such services from other sources. Litigation We are subject to a variety of legal actions in the ordinary course of our business, most of which are covered by liability insurance. While the resolution of these matters cannot be predicted with certainty, as of December 31, 2023, we believe the final outcome of such legal proceedings and claims will not have a material adverse effect on our liquidity, financial position or results of operations. Richmond Guaranty At the closing of the merger with Cottonwood Residential II, Inc. in 2021, the Company assumed a 50% payment guarantee provided by Cottonwood Residential II, Inc. and CROP, for certain obligations of Villas at Millcreek, LLC (“Richmond Borrower”) with respect to a construction loan in the amount of $53.6 million obtained in connection with the development of Richmond at Millcreek, a development project sponsored by High Traverse Development, LLC. Certain of our officers and directors own an aggregate 14.18% of Richmond Borrower. A wholly owned subsidiary of CROP receives fees from High Traverse Development, LLC related to the development of Richmond at Millcreek. Environmental As an owner of real estate, we are subject to various federal, state and local environmental laws. Compliance with existing laws has not had a material adverse effect on us. However, we cannot predict the impact of new or changed laws or regulations on our properties or on properties that we may acquire in the future. Distribution Reinvestment Plan Our distribution reinvestment plan allows common stockholders to apply their dividends and other distributions towards the purchase of additional shares of common stock. The purchase price for shares purchased pursuant to our distribution reinvestment plan is the transaction price for such shares in effect on the distribution date, which is generally the most recently disclosed NAV per share. Share Repurchase Programs Preferred Stock Upon the request of a holder of our preferred stock, we may, at the sole discretion of the board of directors, repurchase their shares at the following prices, which are dependent on how long such preferred stockholder has held each share: Repurchase Price Share Purchase Anniversary Series 2019 Series 2023 Series 2023-A Series A Convertible Less than 1 year $8.80 $9.00 $9.20 $9.00 1 year $9.00 $9.00 $9.40 $9.10 2 years $9.20 $9.20 $9.60 $9.20 3 years $9.40 $9.40 $9.60 $9.30 4 years $9.60 $9.60 $9.60 $9.40 5 years $9.80 $9.80 $9.60 $9.40 6 years $9.80 $9.80 $9.60 $9.80 A stockholder’s death or complete disability, 2 years or more $10.00 $10.00 $10.00 $10.00 Repurchase information on our mandatorily redeemable preferred stock is disclosed in Note 7 above. There have been no repurchases of our Series A Convertible Preferred Stock as of December 31, 2023. Common Stock Our share repurchase program provides that we may make repurchases, at our discretion, with an aggregate value of up to 2% of our aggregate net asset value or “NAV” each month and up to 5% of our NAV each quarter. We have no restrictions on the source of funds used to repurchase shares pursuant to our share repurchase program. For our Class T, Class D and Class I shares, the repurchase price is equal to the transaction price at the date of repurchase, or 95% of the transaction price on the repurchase date if the shares have been held for less than a year. For our Class A shares, the repurchase price will be equal to the transaction price at the date of repurchase, subject to the following: (i) shares that have been outstanding six years or more will be repurchased at 100% of the transaction price, (ii) shares that have been outstanding for at least five years and less than six years will be repurchased at 95.0% of the transaction price, (iii) shares that have been outstanding for at least three years and less than five years will be repurchased at 90.0% of the transaction price and (iv) shares that have been outstanding for at least one year and less than three years will be repurchased at 85.0% of the transaction price. The transaction price is the then-current offering price per share, which is generally the most recently disclosed NAV per share. Common Limited OP Units Beginning one year after acquiring any Common Limited OP Units, common limited partners have the right to request CROP repurchase their Common Limited OP Units as described below. We may, in our sole discretion, honor the repurchase request at the following prices: 1. Beginning one year after acquisition of a Common Limited OP Unit and continuing for the three-year period thereafter, the purchase price for the repurchased Common Limited OP Unit shall be equal to 80% of the NAV of the Common Limited OP Units. 2. Beginning four years after acquisition of a Common Limited OP Unit and continuing for the two-year period thereafter, the purchase price for the repurchased Common Limited OP Units shall be equal to 85% of the NAV of the CROP Common Units. 3. Beginning six years after acquisition of a Common Limited OP Unit and continuing thereafter, the purchase price for the repurchased Common Limited OP Unit shall be equal to 90% of the NAV of the Common Limited OP Units. Subject to our sole discretion, in the case of the death or complete disability of a limited partner, the repurchase of the Common Limited OP Units may occur at any time after acquisition of a Common Limited OP Unit and, if accepted by us, the purchase price for the repurchased Common Limited OP Units will be equal to 95% of the NAV of the Common Limited OP Units. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events We have evaluated subsequent events from December 31, 2023 up until the date the consolidated financial statements are issued for recognition or disclosure and have determined there are none to be reported or disclosed in the consolidated financial statements other than those mentioned below. Series A Convertible Preferred Stock On February 7, 2024, we filed Articles of Amendment to provide that the holders of our Series A Convertible preferred stock may convert their shares into our Class I common stock beginning after a two-year hold period, which is earlier than the five-year time period prior to the amendment. Cottonwood Lighthouse Point Tenant In Common Acquisition On March 28, 2024, we acquired all of the outstanding tenant-in-common interests in Cottonwood Lighthouse Point from an unaffiliated third party in exchange for 259,246 OP Units, increasing our ownership from 86.8% to 100%. 805 Riverfront As discussed in Note 3 , on September 8, 2023, the sponsor of the Riverfront Project was removed as the manager and developer due to events of default, whereupon we became the manager and replacement developer with control of the project and consolidated the project. On January 24, 2024, we acquired the Sponsor’s interest in the entity controlling the Riverfront Project for zero dollars. Sale of Cottonwood West Palm On February 29, 2024, we sold Cottonwood West Palm for net proceeds of $34.0 million. Status of the Series 2023 Private Offering Through March 25, 2024, we sold 674,165 shares of Series 2023 Preferred Stock for aggregate gross offering proceeds of $6.7 million. In connection with the sale of these shares in the Series 2023 Private Offering, the Company paid aggregate selling commissions of $0.4 million and placement fees of $0.2 million. As of March 25, 2024, there were 9,030,889 shares of our Series 2023 Preferred Stock outstanding. Status of the Series 2023-A Private Offering Through March 25, 2024, we sold 10,000 shares of Series 2023-A Preferred Stock for aggregate gross offering proceeds of $100,000. In connection with the sale of these shares in the Series 2023-A Private Offering, the Company paid aggregate wholesaler fees of $2,000 and placement fees of $750. As of March 25, 2024, there were 295,000 shares of our Series 2023-A Preferred Stock outstanding. Status of the Series A Convertible Private Offering Through March 25, 2024, we sold 1,258,832 shares of Series A Convertible Preferred Stock for aggregate gross offering proceeds of $12.6 million. In connection with the sale of these shares in the Series A Convertible Private Offering, the Company paid aggregate selling commissions of $0.7 million and placement fees of $0.4 million. As of March 25, 2024, there were 1,474,108 shares of our Series A Convertible Preferred Stock outstanding. Status of the Follow-on Offering Through March 25, 2024, we sold the following through our follow-on public offering ($ in thousands): Class T D I A Total Shares issued through Primary Offering 141,143 2,497 293,748 — 437,388 Shares issued through DRP Offering 14,575 250 10,605 27,757 53,187 Gross Proceeds $ 2,023 $ 35 $ 3,923 $ — $ 5,981 Distributions Declared - Common Stock We declared the following monthly distributions after December 31, 2023: Stockholder Record Date Monthly Rate Annually January 31, 2024 $ 0.06083333 $ 0.73 February 29, 2024 $ 0.06083333 $ 0.73 March 31, 2024 $ 0.06083333 $ 0.73 Grant of LTIP Unit Awards On January 9, 2024, we issued LTIP Units from the Operating Partnership to our executive officers and certain employees as approved by our compensation committee. The compensation committee approved awards of time-based LTIP Units in an aggregate amount of $1,609,125. Each award will vest approximately one-quarter of the awarded amount on January 1, 2025, 2026, 2027 and 2028. The compensation committee also approved awards of performance-based LTIP Units to our executive officers and certain of our employees in an aggregate target amount of $2,988,375. The actual amount of each performance-based LTIP Unit award will be determined at the conclusion of a three-year performance period and will depend on the internal rate of return as defined in the award agreement. The earned LTIP Units will become fully vested on the first anniversary of the last day of the performance period, subject to continued employment with the advisor or its affiliates. The number of units granted were valued by reference to our November 30, 2023 NAV per share as announced on December 15, 2023 of $14.4754. Equity Incentive Plan On January 9, 2024, we issued an aggregate grant of 34,399 restricted stock units with a four-year vesting schedule. Of this amount, 16,254 were issued pursuant to the Cottonwood Communities, Inc. 2022 Equity Incentive Plan. |
Schedule III - Real Estate and
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Schedule III - Real Estate and Accumulated Depreciation | Initial Cost to Company Gross Amount Carried as of Description Location Ownership Percent Number of Units Encumbrances Land Buildings, Intangibles and Improvements Cost Capitalized Subsequent to Acquisition Land Buildings, Intangibles and Improvements Total (1) Accumulated Depreciation and Amortization (2) Year(s) Built Date Acquired Stabilized Multifamily Apartment Communities: Cason Estates Murfreesboro, TN 100.0% 262 $ (37,462) $ 4,806 $ 46,666 $ 806 $ 4,806 $ 47,472 $ 52,278 $ (6,327) 2005 5/7/2021 Cottonwood Apartments Salt Lake City, UT 100.0% 264 (35,430) 6,556 40,745 1,648 6,556 42,393 48,949 (5,446) 1986 5/7/2021 Cottonwood Clermont Clermont, FL 100.0% 230 (34,961) 5,705 76,805 225 5,705 77,030 82,735 (5,742) 2020 9/21/2022 Cottonwood Reserve Charlotte, NC 91.1% 352 (48,049) 12,634 64,168 1,190 12,634 65,358 77,992 (9,131) 2004, 2017 5/7/2021 Cottonwood Ridgeview Plano, TX 100.0% 322 (65,300) 9,275 59,392 747 9,275 60,139 69,414 (4,515) 2004 9/19/2022 Cottonwood West Palm West Palm Beach, FL 100.0% 245 (47,978) 9,380 57,073 818 9,380 57,891 67,271 (11,217) 2018 5/30/2019 Cottonwood Westside Atlanta, GA 100.0% 197 (26,986) 8,641 39,324 482 8,641 39,806 48,447 (5,138) 2014 5/7/2021 Enclave on Golden Triangle Keller, TX 98.9% 273 (48,400) 4,888 46,712 879 4,888 47,591 52,479 (5,812) 2006 5/7/2021 Heights at Meridian Durham, NC 100.0% 339 (53,401) 5,971 74,022 767 5,971 74,789 80,760 (9,513) 2015 5/7/2021 Melrose Nashville, TN 100.0% 220 (56,600) 8,822 58,676 490 8,822 59,166 67,988 (8,156) 2015 5/7/2021 Melrose Phase II Nashville, TN 100.0% 139 (32,400) 5,156 34,526 25 5,156 34,551 39,707 (1,319) 2018 8/2/2023 Parc Westborough Boston, MA 100.0% 249 (12,400) 12,759 61,302 526 12,759 61,828 74,587 (8,549) 2016 5/7/2021 Park Avenue (3) Salt Lake City, UT 100.0% 234 (43,453) 12,369 29,931 25,508 12,369 55,439 67,808 (3,559) 2022 5/7/2021 Pavilions Albuquerque, NM 96.4% 240 (58,500) 5,924 55,177 870 5,924 56,047 61,971 (6,808) 1992 5/7/2021 Raveneaux Houston, TX 97.0% 382 (47,400) 6,249 51,251 862 6,249 52,113 58,362 (6,739) 2000 5/7/2021 Regatta Houston, TX 100.0% 490 (35,367) 8,449 39,651 1,360 8,449 41,011 49,460 (5,818) 1968-1976 5/7/2021 Retreat at Peachtree City Peachtree City, GA 100.0% 312 (58,412) 5,669 66,888 1,013 5,669 67,901 73,570 (9,310) 1999 5/7/2021 Scott Mountain Portland, OR 95.8% 262 (48,373) 6,952 63,758 659 6,952 64,417 71,369 (7,700) 1997, 2000 5/7/2021 Stonebriar of Frisco Frisco, TX 84.2% 306 (53,600) 5,737 53,463 1,739 5,737 55,202 60,939 (6,691) 1999 5/7/2021 Sugarmont (3), (4) Salt Lake City, UT 99.0% 341 (91,200) 17,838 94,662 27,673 17,838 122,335 140,173 (9,711) 2022 5/7/2021 Summer Park Buford, GA 98.7% 358 (52,398) 9,474 66,200 944 9,474 67,144 76,618 (8,908) 2001 5/7/2021 The Marq Highland Park Tampa, FL 100.0% 239 (46,802) 6,280 59,424 657 6,280 60,081 66,361 (8,266) 2015 5/7/2021 Development Projects: Cottonwood Broadway Salt Lake City, UT 100.0% 254 (41,891) 11,042 30,958 37,263 11,042 68,221 79,263 (1,334) 2023 5/7/2021 Cottonwood Highland Salt Lake City, UT 36.9% 250 (39,790) 7,405 1,695 55,881 7,405 57,576 64,981 (271) 2023 5/7/2021 805 Riverfront (5) West Sacramento, CA (5) 285 (48,310) 11,279 92,100 1,853 11,279 93,953 105,232 (284) 2023 (5) The Westerly Salt Lake City, UT 82.4% 198 — 5,996 1,150 12,861 5,996 14,011 20,007 — N/A 5/7/2021 Other Developments Various Various N/A — 42,297 80 4,312 42,297 4,392 46,689 — N/A Various Total 7,243 $ (1,164,863) $ 257,553 $ 1,365,799 $ 182,058 $ 257,553 $ 1,547,857 $ 1,805,410 $ (156,264) (1) The aggregate cost of real estate for federal income tax purposes was $1.3 billion (unaudited) as of December 31, 2023. (2) Depreciation is recognized on a straight-line basis over the estimated useful asset lives of the related assets, which is 30 years for buildings and ranges from five (3) Park Avenue and Sugarmont were previously both development projects acquired and consolidated as part of the Cottonwood Residential II Inc. merger in 2021, but which have since been placed into service and reached stabilization. The costs capitalized subsequent to acquisition for these two properties above represent the development costs incurred to complete the projects since the initial acquisition date. (4) We own 99.0% of Sugarmont and the remaining one percent interest not owned by us has limited rights, including the right to control on behalf of the joint venture the prosecution and resolution of all litigation, claims, or causes of action that the joint venture has or may have against certain third parties associated with the design and construction of Sugarmont, as well as the obligation to defend any crossclaims resulting from these actions. (5) We had a preferred equity investment in this project, but from September 2023 onward we consolidate the project. Refer to Note 3 and Note 13 for additional information on 805 Riverfront. The following table summarized the changes in our consolidated real estate assets and accumulated depreciation for the years ended December 31, 2023 and 2022 (in thousands): 2023 2022 Real estate assets: Balance at beginning of the year $ 1,816,877 $ 1,476,518 Additions during the year: Acquisitions 143,727 284,138 Improvements and development costs 46,229 56,221 Dispositions and deconsolidations during the year: Dispositions and deconsolidations (201,423) — Balance at end of the year $ 1,805,410 $ 1,816,877 Accumulated depreciation and amortization: Balance at beginning of the year $ (119,270) $ (68,035) Depreciation and amortization (55,840) (51,235) Dispositions and deconsolidations 18,846 — Balance at end of the year $ (156,264) $ (119,270) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net loss | $ (44,898) | $ (34,030) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, the accompanying consolidated financial statements contain all adjustments and eliminations, consisting only of normal recurring adjustments necessary for a fair presentation in conformity with GAAP. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and subsidiaries under its control. The Operating Partnership and its subsidiaries are consolidated as they are controlled by CCI. All intercompany balances and transactions have been eliminated in consolidation. Some of our partially owned and unconsolidated properties are owned through a tenant in common (“TIC interest”) structure. TIC interests constitute separate and undivided interests in real property. TIC interests in properties for which we exercise significant influence are accounted for using the equity method of accounting until we have acquired a 100% interest in the property. Number of units and certain other measures used to describe real estate assets included in the notes to the consolidated financial statements are presented on an unaudited basis. Certain amounts in the prior year consolidated financial statements and notes to the consolidated financial statements have been reclassified to conform to the current year presentation. Such reclassifications did not impact previously reported net loss or accumulated deficit or change net cash provided by or used in operating, investing or financing activities. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Variable Interest Entities | Variable Interest Entities We invest in entities that qualify as variable interest entities (“VIEs”). All VIEs for which we are the primary beneficiary are consolidated. VIEs for which we are not the primary beneficiary are accounted for under the equity method. A VIE is a legal entity in which the equity investors at risk lack sufficient equity to finance the entity’s activities without additional subordinated financial support or, as a group, the equity investors at risk lack the power to direct the entity’s activities and the obligation to absorb the entity’s expected losses or the right to receive the entity’s expected residual returns. Qualitative and quantitative factors are considered in determining whether we are the primary beneficiary of a VIE, including, but not limited to, which activities most significantly impact economic performance, which party controls such activities, the amount and characteristics of our investments, the obligation or likelihood for us or other investors to provide financial support, and the management relationship of the property. CROP is a VIE as the limited partners lack substantive kick-out rights and substantive participating rights. We are the primary beneficiary of CROP as we have the power to direct the activities that most significantly impact economic performance and the rights to receive economic benefits. Substantially all of our assets and liabilities are held in CROP. In cases where we become the primary beneficiary of a VIE, we recognize a gain or loss for the difference between the sum of (1) the fair value of any consideration paid, the fair value of the noncontrolling interest, and the reported amount of our equity method investment and (2) the net fair value of identifiable assets and liabilities of the VIE. |
Investments in Real Estate | Investments in Real Estate In accordance with Accounting Standards Codification Topic 805, Business Combinations , we determine whether an acquisition qualifies as a business combination or as an asset acquisition. We account for business combinations by recognizing assets acquired and liabilities assumed at their fair values as of the acquisition date and expensing transaction costs. Differences between the transaction price and the fair value of identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree, are accounted for as goodwill, or conversely, as a gain on bargain purchase. Transaction costs are included within general and administrative expenses on our consolidated statements of operations as incurred. We account for asset acquisitions by allocating the total cost to the individual assets acquired and liabilities assumed on a relative fair value basis. Real estate assets and liabilities include land, building, furniture, fixtures and equipment, other personal property, in-place lease intangibles and debt. Asset acquisition accounting is also used when we acquire a controlling interest through the acquisition of additional interests in partially owned real estate. |
Real Estate Assets, Net | Real Estate Assets, Net We state real estate assets at cost, less accumulated depreciation and amortization. We capitalize costs related to the development, construction, improvement, and significant renovation of properties, which include capital replacements such as scheduled carpet replacement, new roofs, HVAC units, plumbing, concrete, masonry and other paving, pools and various exterior building improvements. We also capitalize salary costs directly attributable to significant renovation work. five |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets |
Investments in Unconsolidated Real Estate Entities | Investments in Unconsolidated Real Estate Entities Real estate investments where we have significant noncontrolling influence and VIEs where we are not the primary beneficiary are accounted for under the equity method. Equity method investments in unconsolidated real estate entities are recorded at cost, adjusted for our share of net earnings or losses each period, and reduced by distributions. Equity in earnings or losses is generally recognized based on our ownership interest in the earnings or losses of the unconsolidated real estate entities. We follow the “look through” approach for classification of distributions from unconsolidated real estate entities in the consolidated statements of cash flows. Under this approach, distributions are reported under operating cash flow unless the facts and circumstances of a specific distribution clearly indicate that it is a return of capital (e.g., a liquidating dividend or distribution of the proceeds from the entity’s sale of assets), in which case it is reported as an investing activity. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all cash on deposit, money market funds and short-term investments with original maturities of three months or less to be cash and cash equivalents. We maintain cash in demand deposit accounts at several major commercial banks where balances in individual accounts at times exceeds FDIC insured amounts. To reduce the risk associated with the failure of such financial institutions, we periodically evaluate the credit quality of the financial institutions in which we hold deposits. We have not experienced any losses in such accounts. |
Restricted Cash | Restricted Cash Restricted cash includes a construction bond, residents’ security deposits, cash in escrow for self-insurance retention, cash in escrow for acquisitions, escrow deposits held by title companies or by lenders for property taxes, insurance, debt service and replacement reserves, and utility deposits. |
Other Assets | Other Assets Other assets consist primarily of intangible assets acquired in connection with the merger with Cottonwood Residential II, Inc. in May 2021, as well as receivables, interest rate caps, prepaid expenses and related party receivables. |
Unsecured Promissory Notes And Debt Financing Costs | Unsecured Promissory Notes The 2017 6% Notes and the 2019 6% Notes are unsecured notes issued to investors outside of the United States. These unsecured promissory notes are described in Note 5 . These instruments are similar in nature, have fixed interest rates and maturity dates, and are denominated in U.S. dollars. Debt Financing Costs Debt financing costs are presented as a direct deduction from the carrying amount of the associated debt liability, which includes mortgage notes, unsecured promissory notes, our revolving credit facility and mandatorily redeemable preferred stock. Debt financing costs are amortized over the life of the related liability through interest expense. |
Preferred Stock | Preferred Stock Series 2019 Preferred Stock, Series 2023 Preferred Stock and Series 2023-A Preferred Stock are described in Note 7 . These instruments are similar in nature and are classified as liabilities on the consolidated balance sheet due to the mandatory redemption of these instruments on a fixed date for a fixed amount. Preferred stock distributions for these series of preferred stock are recorded as interest expense. Series A Convertible Preferred Stock is described in Note 8 |
Revenue Recognition | Revenue Recognition We lease our multifamily residential units with rents generally due on a monthly basis. Terms are generally one year or less, renewable upon consent of both parties on an annual or monthly basis. Rental and other property revenues is recognized in accordance with Accounting Standards Codification (“ASC”) No. 842, Leases (“Topic 842”). Rental and other property revenues consist of rents and other fees charged to tenants and represent 93% of our total revenue for the year ended December 31, 2023. Our non-lease related revenue consists of income earned from our property management, development, asset management and interest income from our investments in real estate-related loans. Property management and development revenue is derived primarily from our property management services, development and construction work, and internet services. Other revenues consists of interest revenue from our investments in real estate-related loans and asset management revenue from CMOF prior to the closing of the CMOF Merger in September 2022. Non-lease revenues are recognized in accordance with Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers |
Performance Participation Allocation | Performance Participation Allocation |
Income Taxes | Income Taxes We elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, beginning with the year ending December 31, 2019. The Company, as a REIT, is not subject to federal income tax with respect to that portion of its income that meets certain criteria and is distributed annually to stockholders. To continue to qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the REIT’s taxable income, excluding net capital gains, to stockholders. We have adhered to, and intend to continue to adhere to, these requirements to maintain REIT status. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income tax on our taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the Internal Revenue Service grants relief under certain statutory provisions. As a qualified REIT, we are still subject to certain state and local taxes and may be subject to federal income and excise taxes on undistributed taxable income. In addition, taxable income from activities managed through our taxable REIT subsidiary (“TRS”) are subject to federal, state and local income taxes. Provision for such taxes has been included in income tax expense on our consolidated statements of operations. CROP is generally not subject to federal and state income taxes. OP Unit holders, including CCI, are subject to tax on their respective allocable shares of CROP’s taxable income. However, there are certain states that require an entity level tax on CROP. We determine deferred tax assets and liabilities applicable to the TRS based on differences between financial reporting and tax bases of existing assets and liabilities. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, only to the extent that it is more likely than not that future taxable profits will be available against which they can be utilized. We recognize interest and penalties relating to uncertain tax positions in income tax expense when incurred. For the year ended December 31, 2023, we had an income tax provision of $0.3 million, of which all but an insignificant amount was current. For the year ended December 31, 2022, we had an income tax provision of $8.0 million, of which $0.4 million was current and $7.6 million was deferred. As of December 31, 2023 and 2022, our net deferred tax liability was $9.8 million and $9.7 million, respectively, and is included in accounts payable, accrued expenses and other liabilities on the consolidated balance sheet. In 2022 we had $37.7 million of net Section 1231 gains allocated to our TRS, primarily from a promote received from an incentive allocation agreement. We recorded deferred tax liabilities of $9.2 million related to these gains in 2022. They are deferred as these Section 1231 gains have been contributed to a Qualified Opportunity Zone fund, which provides tax benefits for development programs located in designated areas. We expect that these deferred tax liabilities will be realized in 2026. Refer to Note 9 . |
Noncontrolling Interests | Noncontrolling Interests The portion of ownership interests in consolidated entities not held by CCI are reported as noncontrolling interests. Equity and net income (loss) attributable to CCI and to noncontrolling interests are presented separately on the consolidated financial statements. Changes in noncontrolling ownership interests, are accounted for as equity transactions. Noncontrolling interest – limited partners – These noncontrolling interests represent ownership interest in CROP (“CROP Units”) not held by CCI, the sole member of the general partner. Net income or loss is allocated to these limited partners of CROP based on their ownership percentage. Issuance of additional common stock by CCI or CROP Units to limited partners changes the ownership interests of both CCI and the limited partners of CROP. Consistent with the one-for-one relationship between the CROP Units issued to CCI, limited partners are attributed a share of net income or loss in CROP based on their weighted-average ownership interest in CROP during the period. Noncontrolling interest – partially owned entities |
Organization and Offering Costs | Organization and Offering Costs Organization and offering costs in the Series A Convertible Preferred Offering and Follow-on Offering are recorded as an offset to equity. As of December 31, 2023, we incurred $0.6 million and $17.9 million in total organization and offering costs related to the Series A Convertible Preferred Offering and Follow-on Offering, respectively. Organization and offering costs in the Series 2019 Private Offering, the Series 2023 Private Offering and the Series 2023-A Private Offering are deferred and amortized up to the redemption date through interest expense. We incurred $13.2 million in total organization and offering costs related to the offering of the Series 2019 Preferred Stock, which was fully subscribed and terminated in March 2022. As of December 31, 2023 we incurred $10.4 million and $0.3 million in total organization and offering costs related to the offerings of the Series 2023 Preferred Stock and the Series 2023-A Preferred Stock, respectively. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-05 " Business Combinations — Joint Venture Formations (Subtopic 805-60) " under which an entity that qualifies as a joint venture is required to apply a new basis of accounting upon the formation of the joint venture. The amendments in ASU 2023-05 require that a joint venture must initially measure its assets and liabilities at fair value on the formation date. ASU 2023-05 is effective for all joint ventures that are formed on or after January 1, 2025 and early adoption is permitted. We do not expect the adoption to have a material impact on our consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which enhances disclosure requirements to segment reporting. ASU No. 2023-07 requires disclosure of incremental segment information on an annual and interim basis and includes the following changes: (i) single segment entities must follow segment guidance, (ii) the title and position of the chief operating decision maker must be named and (iii) the ability to elect more than one performance measure is provided. ASU No. 2023-07 does not change how operating segments are identified, aggregated, or determined. ASU No. 2023-07 is effective beginning in annual periods after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and retrospective adoption is required for all prior periods presented. We do not expect the adoption to have a material impact on our consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which intends to improve the transparency of income tax disclosures. ASU No. 2023-09 is effective for fiscal |
Fair Value of Financial Instruments | Fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. Fair value measurements are categorized into one of three levels of the fair value hierarchy based on the lowest level of significant input used. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Considerable judgment and a high degree of subjectivity are involved in developing these estimates. These estimates may differ from the actual amounts that we could realize upon settlement. The fair value hierarchy is as follows: Level 1 - Quoted (unadjusted) prices in active markets for identical assets or liabilities. Level 2 - Other observable inputs, either directly or indirectly, other than quoted prices included in Level 1, including: • Quoted prices for similar assets/liabilities in active markets; • Quoted prices for identical or similar assets/liabilities in non-active markets (e.g., few transactions, limited information, non-current prices, high variability over time); • Inputs other than quoted prices that are observable for the asset/liability (e.g., interest rates, yield curves, volatilities, default rates); and • Inputs that are derived principally from or corroborated by other observable market data. Level 3 - Unobservable inputs that cannot be corroborated by observable market data. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Property, Plant and Equipment Useful Lives | The useful lives of our real estate assets are as follows (in years): Land improvements 5 - 15 Buildings 30 Building improvements 5 - 15 Furniture, fixtures and equipment 5 - 15 Intangible lease assets Over lease term The following table summarizes the carrying amounts of our consolidated real estate assets ($ in thousands): December 31, 2023 December 31, 2022 Land $ 257,553 $ 267,876 Building and improvements 1,429,689 1,348,019 Furniture, fixtures and equipment 63,015 54,067 Intangible assets 37,158 40,692 Construction in progress (1) 17,995 106,223 1,805,410 1,816,877 Less: Accumulated depreciation and amortization (156,264) (119,270) Real estate assets, net $ 1,649,146 $ 1,697,607 (1) Includes construction in progress for our development projects and capitalized costs for improvements not yet placed in service at our stabilized properties. |
Schedule of Error Corrections and Prior Period Adjustments | The following shows the line items as reported and as corrected for the year ended December 31, 2022 (in thousands) along with a description of each immaterial misstatement: Adjustments As Previously Reported Inter Activity Items (1) Accrued Capital Expenditures (2) Capitalized Interest (3) Accrued Redemptions (4) As Corrected Cash flows from operating activities: Adjustments to reconcile net loss to net cash provided by operating activities Other operating (5) $ 7,104 $ (4,250) $ — $ — $ — $ 2,854 Changes in operating assets and liabilities Other assets $ (727) $ 3,695 $ — $ — $ — $ 2,968 Accounts payable and accrued liabilities $ 2,819 $ 555 $ 4,141 $ (16) $ (6,162) $ 1,337 Net cash provided by operating activities $ 3,768 $ — $ 4,141 $ (16) $ (6,162) $ 1,731 Cash flows from investing activities: Capital expenditures and development activities $ (88,628) $ — $ (4,141) $ 1,778 $ — $ (90,991) Net cash used in investing activities $ (161,120) $ — $ (4,141) $ 1,778 $ — $ (163,483) Cash flows from investing activities: Borrowings under mortgage notes and term loans $ 464,373 $ 9,161 $ — $ — $ — $ 473,534 Repayments of mortgage notes and term loans $ (231,177) $ (9,161) $ — $ — $ — $ (240,338) Borrowings under construction loans $ 38,331 $ — $ — $ (1,762) $ — $ 36,569 Repurchase of unsecured promissory notes $ (561) $ — $ — $ — $ 418 $ (143) Proceeds from issuance of common stock $ 170,841 $ (2,219) $ — $ — $ — $ 168,622 Repurchase of common stock/OP Units $ (28,379) $ — $ — $ — $ 5,744 $ (22,635) Distributions to common stockholders $ (20,032) $ 2,219 $ — $ — $ — $ (17,813) Net cash provided by financing activities $ 207,486 $ — $ — $ (1,762) $ 6,162 $ 211,886 Supplemental disclosure of non-cash investing and financing activities: Distributions reinvested in common stock $ — $ 2,219 $ — $ — $ — $ 2,219 Changes in accrued capital expenditures $ — $ — $ (4,141) $ — $ — $ (4,141) Capitalized interest related to construction $ — $ — $ — $ 1,762 $ — $ 1,762 Changes in accrued redemptions $ — $ — $ — $ — $ 6,162 $ 6,162 (1) These items do not impact total cash flows from operating, investing and financing activities. They include separating the fair value of derivatives from other assets, separating the amortization of below market leases from other assets, correcting the improper netting between borrowings and repayments for one financing transaction, and reducing cash from issuance of common stock and distributions to common stockholders for distributions from our distribution reinvestment plan. (2) Noncash accruals for capitalized development costs were not properly excluded from cash outflows for capital expenditures and development activities within investing activities and also was not properly excluded from changes in accounts payable and accrued liabilities. (3) Noncash accrued capitalized interest on development projects was not properly excluded from cash outflows for capital expenditures and development activities in investing activities and borrowings from construction loans in financing activities. (4) Noncash accruals for redemptions were not properly excluded from cash outflows paid for redemptions within financing activities and also were not properly excluded from changes in accounts payable and accrued liabilities. (5) The amount in the table above for other operating within operating cash flows includes $6.7 million related to the amortization of debt issuance costs, discounts and premiums, which has been separated to its own line for the current year presentation. |
Real Estate Assets, Net (Tables
Real Estate Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Carrying Amounts of Consolidated Real Estate Assets | The useful lives of our real estate assets are as follows (in years): Land improvements 5 - 15 Buildings 30 Building improvements 5 - 15 Furniture, fixtures and equipment 5 - 15 Intangible lease assets Over lease term The following table summarizes the carrying amounts of our consolidated real estate assets ($ in thousands): December 31, 2023 December 31, 2022 Land $ 257,553 $ 267,876 Building and improvements 1,429,689 1,348,019 Furniture, fixtures and equipment 63,015 54,067 Intangible assets 37,158 40,692 Construction in progress (1) 17,995 106,223 1,805,410 1,816,877 Less: Accumulated depreciation and amortization (156,264) (119,270) Real estate assets, net $ 1,649,146 $ 1,697,607 (1) Includes construction in progress for our development projects and capitalized costs for improvements not yet placed in service at our stabilized properties. |
Schedule of Gain (Loss) Due To Consolidation Of Variable Interest Entity | The entity controlling the Riverfront Project is a variable interest entity (“VIE”). When we consolidate a VIE that is not a business, a gain or loss is recognized for the difference between the sum of (1) the fair value of any consideration paid, the fair value of the noncontrolling interest, and the reported amount of our previous interest and (2) the net fair value of identifiable assets and liabilities of the VIE. For 805 Riverfront, no consideration was paid and the fair value of the noncontrolling interest on the date of consolidation was zero. We recorded a gain of $4.2 million as follows (in thousands): Description Amounts Reported amount of previous interest Equity method investment (1) $ 28,679 Fair value of assets and liabilities Real estate assets $ 103,378 Restricted cash 5,039 Other assets 400 Accounts payable, accrued expenses and other liabilities (15,307) Preferred interest (2) (15,300) Construction loans, net (45,306) Total net fair value of identifiable assets and liabilities of the VIE 32,904 Gain on consolidation $ 4,225 (1) We provided an additional investor capital contribution of $6.0 million for the Riverfront Project with the change of control. (2) A third party has a preferred equity investment in the Riverfront Project that is mandatorily redeemable. This investment accrues interest at 11.5% (subject to a minimum multiple of 1.35x), and has an initial maturity date of May 31, 2024 with two one |
Summary of Purchase Price Allocation | The following table summarizes the purchase price allocation of the real estate assets acquired during the year ended December 31, 2023 (in thousands): Allocated Amounts Property Location Date Consolidated Building Land Land Improvements Personal Property Lease Intangibles Debt Fair Value Adjustment Total Melrose Phase II Nashville, TN 8/2/23 $ 32,115 $ 5,156 $ 248 $ 1,021 $ 1,043 $ 1,013 $ 40,596 The following table summarizes the purchase price allocation of the real estate assets acquired or consolidated during the year ended December 31, 2022 (in thousands): Allocated Amounts Property Location Date Consolidated Building Land Land Improvements Personal Property Lease Intangibles Debt Fair Value Adjustment Total Cottonwood Lighthouse Point Pompano Beach, FL 6/22/22 $ 76,322 $ 13,647 $ 1,843 $ 2,011 $ 1,783 $ — $ 95,606 Cottonwood Ridgeview Plano, TX 9/19/22 54,337 9,275 2,548 835 1,603 1,504 70,102 Cottonwood Clermont Clermont, FL 9/21/22 67,400 5,705 5,744 1,817 1,792 3,428 85,886 $ 198,059 $ 28,627 $ 10,135 $ 4,663 $ 5,178 $ 4,932 $ 251,594 |
Schedule of Equity Transaction Adjustments | Accordingly, noncontrolling interest was reduced by the carrying amount attributable to CMOF’s ownership in the three development projects and the difference between the carrying amount of the noncontrolling interest and the consideration paid was recorded as an adjustment to our equity through additional paid-in capital as follows (in thousands, except share and per share data): 2022 Consideration CMOF Merger Common stock issued and outstanding 5,001,000 Exchange ratio 0.8669 CCI common stock issued as consideration 4,335,367 Per share value of CCI Common Stock $ 20.7007 Fair value of CCI Common Stock issued $ 89,745 Fair value of OP Units issued 8,273 Settlement of CMOF related party notes and interest 1,327 Settlement of net other liabilities of CMOF 142 Total consideration $ 99,487 2022 Change in equity CMOF Merger Carrying amount of noncontrolling interest $ 49,178 Total consideration 99,487 Additional paid in capital adjustment $ (50,309) Fair value of CCI Common Stock issued $ 89,745 Additional paid in capital adjustment (50,309) Total change in equity $ 39,436 |
Investments in Unconsolidated_2
Investments in Unconsolidated Real Estate Entities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Real Estate [Abstract] | |
Schedule of Equity Method Investments | Our investments in unconsolidated real estate entities consist of ownership interests in stabilized properties and preferred equity investments as follows as of December 31, 2023 and 2022 (in thousands): Balance at December 31, Property / Development Location % Owned 2023 2022 Stabilized Properties Alpha Mill (1) (2) Charlotte, NC 73.7% (2) 29,522 10,470 Cottonwood Bayview (1) St. Petersburg, FL 71.0% 11,817 30,792 Cottonwood Lighthouse Point (1) (3) Pompano Beach, FL 86.8% (3) 38,852 — Fox Point (1) Salt Lake City, UT 52.8% 13,533 14,794 Toscana at Valley Ridge (1) Lewisville, TX 58.6% 6,713 9,382 Melrose Phase II (1) (4) Nashville, TN 100.0% (4) — 6,185 Preferred Equity Investments Lector85 Ybor City, FL 11,387 10,006 Astoria West (formerly Vernon) Queens, NY 23,406 20,567 805 Riverfront (5) West Sacramento, CA (5) — 20,259 417 Callowhill Philadelphia, PA 38,028 9,949 Infield Kissimmee, FL 11,942 — Other 516 803 Total $ 185,716 $ 133,207 (1) We account for our tenant in common interests in these properties as equity method investments. Refer to Note 2 . (2) On March 31, 2023, we issued 1,063,293 OP Units for an additional 45.4% tenant-in-common interests in Alpha Mill, increasing our ownership to 73.7%. The value of the OP Units on the close date was $19.8 million based on the net asset value of OP Units as of February 28, 2023. All of the tenant-in-common interests were purchased at the same price. One of the sellers was a related party. (3) On February 14, 2023, we sold 13.2% of our ownership interest in Cottonwood Lighthouse Point for net proceeds of $7.2 million and we recorded a gain on sale of $1.0 million related to the transaction, which reduced our remaining ownership in Cottonwood Lighthouse Point to 86.8%. As a result of this transaction, Cottonwood Lighthouse Point was deconsolidated and is recorded as an investment in unconsolidated real estate from February 14, 2023. (4) On August 2, 2023, we issued 175,077 OP Units to acquire the remaining 20.2% tenant-in-common interests in Melrose Phase II, bringing our ownership to 100% and resulting in the consolidation of the property from that date onward. The value of the OP Units issued was $3.1 million. (5) 805 Riverfront was consolidated due to a change in control as described in Note 3 . On the date of consolidation our equity method investment was $22.6 million. The following is a summary of certain balance sheet and operating data for our stabilized properties ($ in thousands): Operating data: 2023 - For the Period Held as Equity Method Investments 2022 - For the Period Held as Equity Method Investments Total revenues $ 32,373 $ 35,514 Total operating expenses 13,532 14,258 Total other expenses (26,086) (18,871) Net income (loss) (7,245) 2,385 Balance sheet data: December 31, 2023 December 31, 2022 Real estate assets $ 362,157 $ 309,404 Cash and cash equivalents 3,581 4,270 Total assets 374,392 319,734 Mortgage notes, net 235,343 193,939 Total liabilities 240,185 197,365 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Mortgage Notes And Revolving Credit Facility | The following table is a summary of the mortgage notes and revolving credit facility secured by our properties as of December 31, 2023 and 2022 ($ in thousands): Principal Balance Outstanding Indebtedness Weighted-Average Interest Rate Weighted-Average Remaining Term (1) December 31, 2023 December 31, 2022 Fixed rate loans Fixed rate mortgages 4.46% 5.1 Years $ 891,319 $ 528,308 Total fixed rate loans 891,319 528,308 Variable rate loans (2) Floating rate mortgages 5.45% (3) 6.9 Years 131,153 426,130 Variable rate revolving credit facility (4) 7.96% 4.0 Years 12,400 54,000 Total variable rate loans 143,553 480,130 Total secured loans 1,034,872 1,008,438 Unamortized debt issuance costs (7,067) (4,878) Premium on assumed debt, net (5,353) (3,423) Mortgage notes and revolving credit facility, net $ 1,022,452 $ 1,000,137 (1) For loans where we have the ability to exercise extension options at our own discretion, the maximum maturity date has been assumed. (2) The interest rates of our variable rate loans are based on 30-Day Average SOFR or one-month SOFR (CME Term). (3) Includes the impact of interest rate caps in effect on December 31, 2023. (4) Our variable rate revolving credit facility was amended and restated on December 15, 2023 when One Upland was sold and removed as collateral. The facility remains secured by Parc Westborough with the option to add another property as collateral by December 14, 2024. The interest rate on the amended facility is one-month SOFR + 2.60% and the maturity date was reset to a three one |
Schedule of Construction Loans | Information on our construction loans are as follows ($ in thousands): Development Interest Rate Final Expiration Date Loan Amount Amount Drawn at Amount Drawn at Park Avenue (1) (1) (1) $ — $ 37,000 Cottonwood Broadway One-Month BSBY (2) + 2.9% May 15, 2025 44,625 41,891 39,728 Cottonwood Highland 30-Day Average SOFR + 2.55% May 1, 2029 44,250 39,790 18,599 805 Riverfront (3) One-Month SOFR + 4.35% May 30, 2026 55,400 48,310 — The Westerly (4) One-Month SOFR + 3.0% July 12, 2028 42,000 — — $ 186,275 $ 129,991 $ 95,327 (1) The Park Avenue construction loan was refinanced in March 2023 with a $43.5 million fixed rate mortgage which matures in 2028 and is included in mortgage notes above. (2) The Bloomberg Short-Term Yield Index (“BSBY”) will cease as an index after November 15, 2024. We expect the Broadway loan will be refinanced in 2024 before the cessation of BSBY, although there are provisions in the Broadway loan documents for a conversion to Term SOFR if needed. (3) 805 Riverfront was consolidated in September 2023. Refer to Note 3 . (4) In July 2023, we entered into a construction loan agreement for The Westerly, a development project in Millcreek, UT. Construction is expected to be completed in 2026. No amounts have been drawn on the construction loan as of December 31, 2023. |
Schedule of Unsecured Promissory Notes | Information on our unsecured promissory notes are as follows ($ in thousands): Offering Size Interest Rate Maturity Date (1) (2) Maximum Extension Date December 31, 2023 December 31, 2022 2017 6% Notes (1) $ 35,000 6.25% December 31, 2024 (1) December 31, 2024 $ 20,308 $ 20,718 2019 6% Notes (2) 25,000 6.00% December 31, 2024 (2) December 31, 2025 21,575 22,235 $ 60,000 $ 41,883 $ 42,953 (1) We exercised the option to extend the maturity date on our 2017 6% Notes for one final year to December 31, 2024, which increased the interest rate to 6.5% for the period from January 1, 2024 to December 31, 2024. (2) We exercised the option to extend the maturity date on our 2019 6.0% Notes for one additional year to December 31, 2024, which increased the interest rate to 6.25% for the period from January 1, 2024 to December 31, 2024. |
Schedule of Mortgage Notes, Repayments of Principal | The aggregate maturities, including amortizing principal payments on our debt for years subsequent to December 31, 2023 are as follows (in thousands): Year Mortgage Notes and Revolving Credit Facility Construction Loans Unsecured Total 2024 (1) $ 466 $ 90,201 $ 41,883 $ 132,550 2025 1,405 — — 1,405 2026 105,527 — — 105,527 2027 364,181 — — 364,181 2028 72,468 — — 72,468 Thereafter 490,825 39,790 — 530,615 $ 1,034,872 $ 129,991 $ 41,883 $ 1,206,746 (1) Of the amounts maturing in 2024, $21.6 million relates to our 2019 6% Unsecured Promissory Notes, which can be extended to December 31, 2025. An additional $41.9 million relates to the construction loan for Cottonwood Broadway, which can be extended to May 15, 2025, subject to the satisfaction of certain conditions, and $48.3 million relates to the construction loan for 805 Riverfront, which can be extended for two one |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The table below includes the carrying value and fair value for our financial instruments for which it is practicable to estimate fair value (in thousands): As of December 31, 2023 As of December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value Financial Asset: Investments in real estate-related loans $ 8,703 $ 8,777 $ — $ — Financial Liability: Fixed rate mortgages $ 891,319 $ 869,248 $ 528,308 $ 509,134 Floating rate mortgages $ 131,153 $ 129,540 $ 426,130 $ 421,189 Variable rate revolving credit facility $ 12,400 $ 12,400 $ 54,000 $ 54,000 Construction loans $ 129,991 $ 129,991 $ 95,327 $ 95,327 Series 2019 Preferred Stock $ 124,266 $ 124,266 $ 127,065 $ 127,065 Series 2023 Preferred Stock $ 83,567 $ 83,567 $ — $ — Series 2023-A Preferred Stock $ 2,850 $ 2,850 $ — $ — Preferred interest liability $ 15,300 $ 15,300 $ — $ — Unsecured promissory notes, net $ 41,883 $ 41,883 $ 42,953 $ 42,953 |
Preferred Stock (Tables)
Preferred Stock (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Preferred Stock | Information on these classes of preferred stock as of December 31, 2023 and 2022 is as follows: Dividend Rate Extension Dividend Rate Redemption Date Maximum Extension Date Shares Outstanding at December 31, 2023 December 31, 2022 Series 2019 Preferred Stock 5.5% 6.0% December 31, 2024 (1) December 31, 2025 12,426,596 12,706,485 Series 2023 Preferred Stock 6.0% 6.5% (2) June 30, 2027 June 30, 2029 8,356,724 — Series 2023-A Preferred Stock 7.0% N/A December 31, 2027 N/A 285,000 — (1) Prior to the original December 31, 2023 redemption date, we exercised our first extension option for the Series 2019 Preferred Stock, which increased the dividend rate to 6.0% and extended the redemption date to December 31, 2024. (2) Represents the fully extended dividend rate. During the first-year extension the dividend rate is 6.25%. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Common Stock Outstanding | The following table summarizes the changes in the shares outstanding for each class of outstanding common stock for the periods presented below: Class T D I A TX Total Balance at December 31, 2021 — — 151,286 23,445,174 17,520 23,613,980 Issuance of common stock 4,814,430 64,645 3,579,515 — — 8,458,590 Distribution reinvestment 10,832 28 8,334 93,768 13 112,975 Exchanges and transfers (1) — — 280,889 17,533 (17,533) 280,889 CMOF Merger — — — 4,335,367 — 4,335,367 Repurchases of common stock (10,140) — (158,975) (1,286,978) — (1,456,093) Balance at December 31, 2022 4,815,122 64,673 3,861,049 26,604,864 — 35,345,708 Issuance of common stock 644,374 148,629 650,383 — — 1,443,386 Distribution reinvestment 31,289 682 24,344 74,304 — 130,619 Exchanges and transfers (1) (1,723) — 480,749 — — 479,026 Repurchases of common stock (1,571,844) (11,241) (720,082) (3,447,291) — (5,750,458) Balance at December 31, 2023 3,917,218 202,743 4,296,443 23,231,877 — 31,648,281 (1) Exchanges represent the number of shares OP Unit holders have exchanged for Class I shares during the period. In 2023, transfers represent Class T shares that were converted to Class I shares during the period. During 2022, transfers represent Class TX shares that were converted to Class A shares, after which we no longer had any Class TX shares outstanding. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Repurchase Program | Upon the request of a holder of our preferred stock, we may, at the sole discretion of the board of directors, repurchase their shares at the following prices, which are dependent on how long such preferred stockholder has held each share: Repurchase Price Share Purchase Anniversary Series 2019 Series 2023 Series 2023-A Series A Convertible Less than 1 year $8.80 $9.00 $9.20 $9.00 1 year $9.00 $9.00 $9.40 $9.10 2 years $9.20 $9.20 $9.60 $9.20 3 years $9.40 $9.40 $9.60 $9.30 4 years $9.60 $9.60 $9.60 $9.40 5 years $9.80 $9.80 $9.60 $9.40 6 years $9.80 $9.80 $9.60 $9.80 A stockholder’s death or complete disability, 2 years or more $10.00 $10.00 $10.00 $10.00 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Schedule of Sale of Stock | Through March 25, 2024, we sold the following through our follow-on public offering ($ in thousands): Class T D I A Total Shares issued through Primary Offering 141,143 2,497 293,748 — 437,388 Shares issued through DRP Offering 14,575 250 10,605 27,757 53,187 Gross Proceeds $ 2,023 $ 35 $ 3,923 $ — $ 5,981 |
Schedule of Distributions | We declared the following monthly distributions after December 31, 2023: Stockholder Record Date Monthly Rate Annually January 31, 2024 $ 0.06083333 $ 0.73 February 29, 2024 $ 0.06083333 $ 0.73 March 31, 2024 $ 0.06083333 $ 0.73 |
Organization and Business (Deta
Organization and Business (Details) | 12 Months Ended | 26 Months Ended | 28 Months Ended | ||||
Jul. 08, 2022 USD ($) project shares | Dec. 31, 2023 USD ($) realEstateUnit apartmentCommunity state land_parcel segment project | Dec. 31, 2023 USD ($) realEstateUnit apartmentCommunity state land_parcel project | Dec. 22, 2020 USD ($) | Jun. 28, 2022 project | Nov. 30, 2021 USD ($) | Nov. 30, 2019 $ / shares | |
Subsidiary, Sale of Stock [Line Items] | |||||||
Number of reportable segments | segment | 1 | ||||||
Joint venture, number of projects | project | 2 | 3 | 3 | 2 | |||
Park Avenue PA | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Ownership interest | 100% | ||||||
Cottonwood on Broadway | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Ownership interest | 100% | ||||||
CW Block C, LLC | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Ownership interest | 79% | ||||||
Ownership Interest | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Number of multifamily apartment communities | apartmentCommunity | 37 | 37 | |||||
Number of states in real estate property | state | 12 | 12 | |||||
Number of units | realEstateUnit | 10,616 | 10,616 | |||||
Number of real estate properties | land_parcel | 4 | 4 | |||||
Structured Investment Interest | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Number of multifamily apartment communities | apartmentCommunity | 6 | 6 | |||||
Number of units | realEstateUnit | 1,868 | 1,868 | |||||
Structured Investment Interest | Under Construction | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Number of multifamily apartment communities | apartmentCommunity | 4 | 4 | |||||
Number of units | realEstateUnit | 987 | 987 | |||||
Class A | Cottonwood Multifamily Opportunity Fund, Inc. | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Share conversion ratio | 0.8669 | ||||||
CRII, CMRI, CMRII and CMOF Merger (in shares) | shares | 4,335,367 | ||||||
CMOF Merger | $ 89,700,000 | ||||||
IPO | Class A and Class TX | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Proceeds from public offering | $ 122,000,000 | ||||||
Follow on Offering | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Stock offered, value | $ 1,000,000,000 | ||||||
Proceeds from issuance of follow-on offering | $ 203,000,000 | ||||||
Distribution Reinvestment Plan | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Stock offered, value | 100,000,000 | ||||||
Proceeds from issuance of follow-on offering | $ 4,700,000 | ||||||
Primary Offering | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Stock offered, value | $ 900,000,000 | ||||||
Private Placement | Series 2019 Preferred Stock | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Share price (in dollars per share) | $ / shares | $ 10 | ||||||
Proceeds from private offering | $ 215,500,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Property, Plant and Equipment Useful Lives (Details) | Dec. 31, 2023 |
Land improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of real estate assets (in years) | 5 years |
Land improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of real estate assets (in years) | 15 years |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Useful life of real estate assets (in years) | 30 years |
Building improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of real estate assets (in years) | 5 years |
Building improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of real estate assets (in years) | 15 years |
Furniture, fixtures and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of real estate assets (in years) | 5 years |
Furniture, fixtures and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of real estate assets (in years) | 15 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Subsidiary, Sale of Stock [Line Items] | ||
Impairment losses for long-lived assets recognized | $ 0 | $ 0 |
Impairment losses in unconsolidated real estate entities | $ 0 | 0 |
Rental and other property revenues | 93% | |
Income tax provision | $ 303,000 | 7,959,000 |
Current income tax | 400,000 | |
Deferred tax | 7,600,000 | |
Deferred tax liability | 9,800,000 | 9,700,000 |
TRS received impacts from sale of portfolio of assets | 37,700,000 | |
Deferred tax liabilities | 9,200,000 | |
Cottonwood Communities Management, LLC | Series A Convertible | ||
Subsidiary, Sale of Stock [Line Items] | ||
Offering costs incurred | 600,000 | $ 17,900,000 |
Cottonwood Communities Management, LLC | Private Placement | ||
Subsidiary, Sale of Stock [Line Items] | ||
Offering costs incurred | 13,200,000 | |
Cottonwood Communities Management, LLC | Series 2023 Private Offering | ||
Subsidiary, Sale of Stock [Line Items] | ||
Offering costs incurred | 10,400,000 | |
Cottonwood Communities Management, LLC | Series 2023-A Preferred Stock | ||
Subsidiary, Sale of Stock [Line Items] | ||
Offering costs incurred | $ 300,000 | |
OP Units | ||
Subsidiary, Sale of Stock [Line Items] | ||
Share conversion ratio | 1 | |
2017 Notes | ||
Subsidiary, Sale of Stock [Line Items] | ||
Interest rate | 6% | |
2019 Notes | Unsecured Promissory Notes | ||
Subsidiary, Sale of Stock [Line Items] | ||
Interest rate | 6% | |
Minimum | Renovations and Improvements | ||
Subsidiary, Sale of Stock [Line Items] | ||
Useful life of real estate assets (in years) | 5 years | |
Maximum | Renovations and Improvements | ||
Subsidiary, Sale of Stock [Line Items] | ||
Useful life of real estate assets (in years) | 15 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Error Corrections of Cash Flow Misclassification (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Adjustments to reconcile net loss to net cash provided by operating activities | ||
Other operating | $ 2,854 | |
Changes in operating assets and liabilities: | ||
Other assets | $ (6,945) | 2,968 |
Accounts payable and accrued liabilities | 5,587 | 1,337 |
Net cash provided by operating activities | (22,569) | 1,731 |
Cash flows from investing activities: | ||
Capital expenditures and development activities | (50,401) | (90,991) |
Net cash used in investing activities | 41,621 | (163,483) |
Cash flows from financing activities: | ||
Borrowings under mortgage notes | 366,963 | 473,534 |
Repayments of mortgage notes | (284,702) | (240,338) |
Borrowings from construction loans | 22,066 | 36,569 |
Repurchase of unsecured promissory notes | (1,206) | (143) |
Proceeds from issuance of common stock | 27,131 | 168,622 |
Repurchase of common stock/OP Units | (95,404) | (22,635) |
Distributions to common stockholders | (21,871) | (17,813) |
Net cash provided by financing activities | (23,763) | 211,886 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Distributions reinvested in common stock | 2,353 | 2,219 |
Changes in accrued capital expenditures | (6,773) | (4,141) |
Paid-in-kind interest related to construction | 4,293 | 1,762 |
Changes in accrued redemptions | 3,497 | 6,162 |
Amortization of debt issuance costs, discounts and premiums | $ 9,342 | 6,668 |
As Previously Reported | ||
Adjustments to reconcile net loss to net cash provided by operating activities | ||
Other operating | 7,104 | |
Changes in operating assets and liabilities: | ||
Other assets | (727) | |
Accounts payable and accrued liabilities | 2,819 | |
Net cash provided by operating activities | 3,768 | |
Cash flows from investing activities: | ||
Capital expenditures and development activities | (88,628) | |
Net cash used in investing activities | (161,120) | |
Cash flows from financing activities: | ||
Borrowings under mortgage notes | 464,373 | |
Repayments of mortgage notes | (231,177) | |
Borrowings from construction loans | 38,331 | |
Repurchase of unsecured promissory notes | (561) | |
Proceeds from issuance of common stock | 170,841 | |
Repurchase of common stock/OP Units | (28,379) | |
Distributions to common stockholders | (20,032) | |
Net cash provided by financing activities | 207,486 | |
Supplemental disclosure of non-cash investing and financing activities: | ||
Distributions reinvested in common stock | 0 | |
Changes in accrued capital expenditures | 0 | |
Paid-in-kind interest related to construction | 0 | |
Changes in accrued redemptions | 0 | |
Adjustments | Inter Activity Items | ||
Adjustments to reconcile net loss to net cash provided by operating activities | ||
Other operating | (4,250) | |
Changes in operating assets and liabilities: | ||
Other assets | 3,695 | |
Accounts payable and accrued liabilities | 555 | |
Net cash provided by operating activities | 0 | |
Cash flows from investing activities: | ||
Capital expenditures and development activities | 0 | |
Net cash used in investing activities | 0 | |
Cash flows from financing activities: | ||
Borrowings under mortgage notes | 9,161 | |
Repayments of mortgage notes | (9,161) | |
Borrowings from construction loans | 0 | |
Repurchase of unsecured promissory notes | 0 | |
Proceeds from issuance of common stock | (2,219) | |
Repurchase of common stock/OP Units | 0 | |
Distributions to common stockholders | 2,219 | |
Net cash provided by financing activities | 0 | |
Supplemental disclosure of non-cash investing and financing activities: | ||
Distributions reinvested in common stock | 2,219 | |
Changes in accrued capital expenditures | 0 | |
Paid-in-kind interest related to construction | 0 | |
Changes in accrued redemptions | 0 | |
Adjustments | Accrued Capital Expenditures | ||
Adjustments to reconcile net loss to net cash provided by operating activities | ||
Other operating | 0 | |
Changes in operating assets and liabilities: | ||
Other assets | 0 | |
Accounts payable and accrued liabilities | 4,141 | |
Net cash provided by operating activities | 4,141 | |
Cash flows from investing activities: | ||
Capital expenditures and development activities | (4,141) | |
Net cash used in investing activities | (4,141) | |
Cash flows from financing activities: | ||
Borrowings under mortgage notes | 0 | |
Repayments of mortgage notes | 0 | |
Borrowings from construction loans | 0 | |
Repurchase of unsecured promissory notes | 0 | |
Proceeds from issuance of common stock | 0 | |
Repurchase of common stock/OP Units | 0 | |
Distributions to common stockholders | 0 | |
Net cash provided by financing activities | 0 | |
Supplemental disclosure of non-cash investing and financing activities: | ||
Distributions reinvested in common stock | 0 | |
Changes in accrued capital expenditures | (4,141) | |
Paid-in-kind interest related to construction | 0 | |
Changes in accrued redemptions | 0 | |
Adjustments | Capitalized Interest | ||
Adjustments to reconcile net loss to net cash provided by operating activities | ||
Other operating | 0 | |
Changes in operating assets and liabilities: | ||
Other assets | 0 | |
Accounts payable and accrued liabilities | (16) | |
Net cash provided by operating activities | (16) | |
Cash flows from investing activities: | ||
Capital expenditures and development activities | 1,778 | |
Net cash used in investing activities | 1,778 | |
Cash flows from financing activities: | ||
Borrowings under mortgage notes | 0 | |
Repayments of mortgage notes | 0 | |
Borrowings from construction loans | (1,762) | |
Repurchase of unsecured promissory notes | 0 | |
Proceeds from issuance of common stock | 0 | |
Repurchase of common stock/OP Units | 0 | |
Distributions to common stockholders | 0 | |
Net cash provided by financing activities | (1,762) | |
Supplemental disclosure of non-cash investing and financing activities: | ||
Distributions reinvested in common stock | 0 | |
Changes in accrued capital expenditures | 0 | |
Paid-in-kind interest related to construction | 1,762 | |
Changes in accrued redemptions | 0 | |
Adjustments | Accrued Redemptions | ||
Adjustments to reconcile net loss to net cash provided by operating activities | ||
Other operating | 0 | |
Changes in operating assets and liabilities: | ||
Other assets | 0 | |
Accounts payable and accrued liabilities | (6,162) | |
Net cash provided by operating activities | (6,162) | |
Cash flows from investing activities: | ||
Capital expenditures and development activities | 0 | |
Net cash used in investing activities | 0 | |
Cash flows from financing activities: | ||
Borrowings under mortgage notes | 0 | |
Repayments of mortgage notes | 0 | |
Borrowings from construction loans | 0 | |
Repurchase of unsecured promissory notes | 418 | |
Proceeds from issuance of common stock | 0 | |
Repurchase of common stock/OP Units | 5,744 | |
Distributions to common stockholders | 0 | |
Net cash provided by financing activities | 6,162 | |
Supplemental disclosure of non-cash investing and financing activities: | ||
Distributions reinvested in common stock | 0 | |
Changes in accrued capital expenditures | 0 | |
Paid-in-kind interest related to construction | 0 | |
Changes in accrued redemptions | $ 6,162 |
Real Estate Assets, Net - Carry
Real Estate Assets, Net - Carrying Amount of Real Estate Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Business Combination and Asset Acquisition [Abstract] | ||
Land | $ 257,553 | $ 267,876 |
Building and improvements | 1,429,689 | 1,348,019 |
Furniture, fixtures and equipment | 63,015 | 54,067 |
Intangible assets | 37,158 | 40,692 |
Construction in progress | 17,995 | 106,223 |
Real estate investment property, at cost | 1,805,410 | 1,816,877 |
Less: Accumulated depreciation and amortization | (156,264) | (119,270) |
Real estate assets, net | $ 1,649,146 | $ 1,697,607 |
Real Estate Assets, Net - Addit
Real Estate Assets, Net - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||||||||||||||||
Jan. 24, 2024 USD ($) | Dec. 15, 2023 USD ($) | Sep. 08, 2023 USD ($) | Feb. 14, 2023 USD ($) | Sep. 20, 2022 USD ($) a | Aug. 31, 2022 USD ($) | Jun. 22, 2022 USD ($) | Dec. 28, 2021 USD ($) | Aug. 31, 2023 shares | Sep. 30, 2022 USD ($) shares | Dec. 31, 2023 USD ($) investment project shares | Dec. 31, 2022 USD ($) shares | Mar. 28, 2024 | Mar. 27, 2024 | Sep. 30, 2023 | Feb. 13, 2023 | Jul. 08, 2022 project | Jun. 28, 2022 project | |
Business Acquisition [Line Items] | ||||||||||||||||||
Proceeds from sale of investments in unconsolidated real estate entities | $ 0 | $ 28,764,000 | ||||||||||||||||
Gain on consolidation of development | $ 4,225,000 | $ 0 | ||||||||||||||||
Issuance of common stock (in shares) | shares | 1,443,386 | 8,458,590 | ||||||||||||||||
Issuance of stock | $ 168,477,000 | |||||||||||||||||
Payments to acquire productive assets | $ 50,401,000 | $ 90,991,000 | ||||||||||||||||
Joint venture, number of projects | project | 3 | 2 | 2 | |||||||||||||||
Cottonwood Multifamily Opportunity Fund, Inc. | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Number of investments | investment | 3 | |||||||||||||||||
OP Units | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Issuance of common stock (in shares) | shares | 175,077 | 141,543 | ||||||||||||||||
Issuance of stock | $ 2,900,000 | |||||||||||||||||
Cottonwood Lighthouse Point | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Proceeds from issuance of debt | $ 48,000,000 | |||||||||||||||||
Weighted-average amortization period (in years) | 6 months | |||||||||||||||||
Cottonwood Ridgeview | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Tenant-in-common interest in property | 0.095 | |||||||||||||||||
Cottonwood Clermont | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Proceeds from issuance of debt | $ 35,500,000 | |||||||||||||||||
Galleria Land | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Area of land acquired | a | 26 | |||||||||||||||||
Payments to acquire productive assets | $ 28,500,000 | |||||||||||||||||
Variable Interest Entity, Primary Beneficiary | 805 Riverfront | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Non controlling interest consolidation fair value | $ 0 | |||||||||||||||||
Gain on consolidation of development | 4,225,000 | |||||||||||||||||
Payments to acquire equity method investments | $ 6,000,000 | |||||||||||||||||
Variable Interest Entity, Primary Beneficiary | 805 Riverfront | Subsequent event | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Payments to acquire equity method investments | $ 0 | |||||||||||||||||
Cottonwood Lighthouse Point | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Proceeds from sale of investments in unconsolidated real estate entities | $ 7,200,000 | |||||||||||||||||
% Owned | 86.80% | 100% | ||||||||||||||||
Proceeds from divestiture of businesses and interests in affiliates | $ 1,000,000 | |||||||||||||||||
Cottonwood Lighthouse Point | Subsequent event | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
% Owned | 100% | 86.80% | ||||||||||||||||
Cottonwood One Upland | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Proceeds from sale of investments in unconsolidated real estate entities | $ 38,800,000 | |||||||||||||||||
Proceeds from divestiture of businesses and interests in affiliates | $ 23,000,000 | |||||||||||||||||
Melrose Phase II | Nashville, TN | Unconsolidated Properties | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
% Owned | 100% | |||||||||||||||||
Additional interest | 20.20% | |||||||||||||||||
Payment for the additional interest | $ 3,100,000 |
Real Estate Assets, Net - Sched
Real Estate Assets, Net - Schedule of Fair Value of Noncontrolling Interest Consolidation of Variable Interest Entity (Details) $ in Thousands | 12 Months Ended | |||
Jan. 24, 2024 USD ($) | Sep. 08, 2023 USD ($) | Dec. 31, 2023 USD ($) extension | Dec. 31, 2022 USD ($) | |
Fair Value of Assets and Liabilities [Abstract] | ||||
Restricted cash | $ 27,013 | $ 32,351 | ||
Other assets | $ 29,464 | $ 29,299 | ||
805 Riverfront | ||||
Fair Value of Assets and Liabilities [Abstract] | ||||
Investment interest rate | 11.50% | |||
Accrued interest, minimum multiple | 1.35 | |||
Number of extensions | extension | 2 | |||
Extension period | 1 year | |||
Variable Interest Entity, Primary Beneficiary | 805 Riverfront | ||||
Reported Amount of Previous Interest [Abstract] | ||||
Equity method investments | $ 22,600 | |||
Fair Value of Assets and Liabilities [Abstract] | ||||
Investments in real estate-related loans, net | 103,378 | |||
Restricted cash | 5,039 | |||
Other assets | 400 | |||
Accounts payable, accrued expenses and other liabilities | (15,307) | |||
Preferred equity | (15,300) | |||
Construction loans, net | (45,306) | |||
Total net fair value of identifiable assets and liabilities of the VIE | 32,904 | |||
Payments to acquire equity method investments | 6,000 | |||
Variable Interest Entity, Primary Beneficiary | 805 Riverfront | Subsequent event | ||||
Fair Value of Assets and Liabilities [Abstract] | ||||
Payments to acquire equity method investments | $ 0 | |||
Variable Interest Entity, Primary Beneficiary | 805 Riverfront | With Additional Investor Capital Contributions | ||||
Reported Amount of Previous Interest [Abstract] | ||||
Equity method investments | $ 28,679 |
Real Estate Assets, Net - Sch_2
Real Estate Assets, Net - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Aug. 02, 2023 | Sep. 21, 2022 | Sep. 19, 2022 | Jun. 22, 2022 | Dec. 31, 2023 | |
Asset Acquisition [Line Items] | |||||
Building | $ 198,059 | ||||
Land | 28,627 | ||||
Land Improvements | 10,135 | ||||
Personal Property | 4,663 | ||||
Lease Intangibles | 5,178 | ||||
Debt Fair Value Adjustment | 4,932 | ||||
Total | 251,594 | ||||
Melrose Phase II | |||||
Asset Acquisition [Line Items] | |||||
Building | $ 32,115 | ||||
Land | 5,156 | ||||
Land Improvements | 248 | ||||
Personal Property | 1,021 | ||||
Lease Intangibles | 1,043 | ||||
Debt Fair Value Adjustment | 1,013 | ||||
Total | $ 40,596 | ||||
Cottonwood Lighthouse Point | |||||
Asset Acquisition [Line Items] | |||||
Building | $ 76,322 | ||||
Land | 13,647 | ||||
Land Improvements | 1,843 | ||||
Personal Property | 2,011 | ||||
Lease Intangibles | 1,783 | ||||
Debt Fair Value Adjustment | 0 | ||||
Total | $ 95,606 | ||||
Cottonwood Ridgeview | |||||
Asset Acquisition [Line Items] | |||||
Building | $ 54,337 | ||||
Land | 9,275 | ||||
Land Improvements | 2,548 | ||||
Personal Property | 835 | ||||
Lease Intangibles | 1,603 | ||||
Debt Fair Value Adjustment | 1,504 | ||||
Total | $ 70,102 | ||||
Cottonwood Clermont | |||||
Asset Acquisition [Line Items] | |||||
Building | $ 67,400 | ||||
Land | 5,705 | ||||
Land Improvements | 5,744 | ||||
Personal Property | 1,817 | ||||
Lease Intangibles | 1,792 | ||||
Debt Fair Value Adjustment | 3,428 | ||||
Total | $ 85,886 |
Real Estate Assets, Net - Equit
Real Estate Assets, Net - Equity Transaction Adjustments for CMOF (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) investment $ / shares shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 shares | |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Common stock, shares outstanding (in shares) | shares | 31,648,281 | 35,345,708 | 23,613,980 |
Cottonwood Multifamily Opportunity Fund, Inc. | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Number of investments | investment | 3 | ||
Fair value of CCI Common Stock issued | $ 89,745 | ||
Settlement of CMOF related party notes and interest | 0 | $ 1,327 | |
Settlement of net other liabilities of CMOF | 0 | $ 142 | |
Total consideration | 99,487 | ||
Carrying amount of noncontrolling interest | 49,178 | ||
Additional paid in capital adjustment | (50,309) | ||
Total change in equity | $ 39,436 | ||
Cottonwood Multifamily Opportunity Fund, Inc. | Common Stock | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Common stock, shares issued (in shares) | shares | 5,001,000 | ||
Common stock, shares outstanding (in shares) | shares | 5,001,000 | ||
Exchange ratio | 0.8669 | ||
Cottonwood Multifamily Opportunity Fund, Inc. | Common Stock | CCI | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
CCI common stock issued as consideration (in shares) | shares | 4,335,367 | ||
CCI's estimated value per share (in dollars per share) | $ / shares | $ 20.7007 | ||
Fair value of CCI Common Stock issued | $ 89,745 | ||
Fair value of OP Units issued | 8,273 | ||
Settlement of CMOF related party notes and interest | 1,327 | ||
Settlement of net other liabilities of CMOF | $ 142 |
Investments in Unconsolidated_3
Investments in Unconsolidated Real Estate Entities - Schedule of Equity Method Investments (Details) $ in Thousands | 12 Months Ended | ||||||
Aug. 02, 2023 USD ($) shares | Mar. 31, 2023 USD ($) shares | Feb. 14, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 08, 2023 USD ($) | Feb. 13, 2023 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Proceeds from sale of investments in unconsolidated real estate entities | $ 0 | $ 28,764 | |||||
Variable Interest Entity, Primary Beneficiary | 805 Riverfront | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investments | $ 22,600 | ||||||
OP Units | Alpha Mill | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
CMOF (in shares) | shares | 1,063,293 | ||||||
Tenant-in-common interest in property | 0.454 | ||||||
Ownership interest | 73.70% | ||||||
CMOF Merger | $ 19,800 | ||||||
Disposed of by Sale | Cottonwood Lighthouse Point | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Proceeds from sale of investments in unconsolidated real estate entities | $ 7,200 | ||||||
Gain on sale | $ 1,000 | ||||||
Unconsolidated Properties | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investments | $ 185,716 | 133,207 | |||||
Alpha Mill | Charlotte, NC | Stabilized Properties | Unconsolidated Properties | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
% Owned | 73.70% | ||||||
Equity method investments | $ 29,522 | 10,470 | |||||
Cottonwood Bayview | St. Petersburg, FL | Stabilized Properties | Unconsolidated Properties | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
% Owned | 71% | ||||||
Equity method investments | $ 11,817 | 30,792 | |||||
Cottonwood Lighthouse Point | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
% Owned | 86.80% | 100% | |||||
Proceeds from sale of investments in unconsolidated real estate entities | $ 7,200 | ||||||
Cottonwood Lighthouse Point | Disposed of by Sale | Cottonwood Lighthouse Point | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
% Owned | 86.80% | ||||||
Sale of ownership percentage | 13.20% | ||||||
Cottonwood Lighthouse Point | Pompano Beach, FL | Stabilized Properties | Unconsolidated Properties | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
% Owned | 86.80% | ||||||
Equity method investments | $ 38,852 | 0 | |||||
Fox Point | Salt Lake City, UT | Stabilized Properties | Unconsolidated Properties | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
% Owned | 52.80% | ||||||
Equity method investments | $ 13,533 | 14,794 | |||||
Toscana At Valley Ridge | Lewisville, TX | Stabilized Properties | Unconsolidated Properties | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
% Owned | 58.60% | ||||||
Equity method investments | $ 6,713 | $ 9,382 | |||||
Melrose Phase II | OP Units | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
CMOF (in shares) | shares | 175,077 | ||||||
Tenant-in-common interest in property | 0.202 | ||||||
CMOF Merger | $ 3,100 | ||||||
Melrose Phase II | Nashville, TN | Unconsolidated Properties | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
% Owned | 100% | ||||||
Melrose Phase II | Nashville, TN | Stabilized Properties | Unconsolidated Properties | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investments | 0 | $ 6,185 | |||||
Lector85 | Ybor City, FL | Preferred Equity Investments | Unconsolidated Properties | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investments | 11,387 | 10,006 | |||||
Astoria West (formerly Vernon) | Queens, NY | Preferred Equity Investments | Unconsolidated Properties | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investments | 23,406 | 20,567 | |||||
805 Riverfront | West Sacramento, CA | Preferred Equity Investments | Unconsolidated Properties | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investments | 0 | 20,259 | |||||
417 Callowhill | Philadelphia, PA | Preferred Equity Investments | Unconsolidated Properties | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investments | 38,028 | 9,949 | |||||
Infield | Kissimmee, FL | Preferred Equity Investments | Unconsolidated Properties | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investments | 11,942 | 0 | |||||
Other | Unconsolidated Properties | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investments | $ 516 | $ 803 |
Investments in Unconsolidated_4
Investments in Unconsolidated Real Estate Entities - Additional Information (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Nov. 03, 2023 USD ($) apartmentUnit | Feb. 28, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity in earnings of unconsolidated real estate entities | $ 6,466 | $ 12,393 | ||
Infield Apartments Junior Preferred Equity Investment | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Payments to acquire interest in joint venture | $ 11,400 | |||
Investment interest rate | 16.75% | |||
Multifamily | Infield Apartments Junior Preferred Equity Investment | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of units | apartmentUnit | 384 | |||
Preferred Equity Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in earnings of unconsolidated real estate entities | 11,900 | 8,800 | ||
Preferred Equity Investments | 417 Callowhill | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Commitment on investment | 23,400 | |||
Payments to acquire investments | 32,100 | |||
Investment in loan | 1,300 | |||
Unconsolidated Properties | Stabilized Properties | Toscana At Valley Ridge | Lewisville, TX | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Payment for the additional interest | $ 1,200 | |||
Unconsolidated Properties | Stabilized Properties | Cottonwood Bayview | St. Petersburg, FL | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Payment for the additional interest | $ 16,900 | |||
Cottonwood Residential II | Stabilized Properties | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in earnings of unconsolidated real estate entities | $ (5,400) | $ 3,600 |
Investments in Unconsolidated_5
Investments in Unconsolidated Real Estate Entities - Balance Sheet and Operating Data (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating data: | ||
Total revenues | $ 154,405 | $ 138,302 |
Total operating expenses | 157,771 | 167,262 |
Total other expenses | (2,552) | 3,883 |
Net income (loss) | (44,898) | (34,030) |
Balance sheet data: | ||
Real estate assets, net | 1,649,146 | 1,697,607 |
Cash and cash equivalents | 63,800 | 63,173 |
Total assets | 1,963,842 | 1,955,637 |
Mortgage notes, net | 1,022,452 | 1,000,137 |
Total liabilities | 1,492,295 | 1,345,738 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Underlying Stabilized Assets | ||
Operating data: | ||
Total revenues | 32,373 | 35,514 |
Total operating expenses | 13,532 | 14,258 |
Total other expenses | (26,086) | (18,871) |
Net income (loss) | (7,245) | 2,385 |
Balance sheet data: | ||
Real estate assets, net | 362,157 | 309,404 |
Cash and cash equivalents | 3,581 | 4,270 |
Total assets | 374,392 | 319,734 |
Mortgage notes, net | 235,343 | 193,939 |
Total liabilities | $ 240,185 | $ 197,365 |
Debt - Mortgage Notes And Revol
Debt - Mortgage Notes And Revolving Credit Facility (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Total secured loans | $ 1,034,872,000 | $ 1,008,438,000 |
Unamortized debt issuance costs | (7,067,000) | (4,878,000) |
Premium on assumed debt, net | (5,353,000) | (3,423,000) |
Mortgage notes and revolving credit facility, net | $ 1,022,452,000 | 1,000,137,000 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Weighted average remaining term | 3 years | |
Extension period | 1 year | |
Revolving Credit Facility | SOFR | ||
Debt Instrument [Line Items] | ||
Weighted average variable rate | 2.60% | |
Future Acquisition Financing | ||
Debt Instrument [Line Items] | ||
Line of credit maximum borrowing capacity | $ 100,000,000 | |
Current borrowing capacity | $ 41,000,000 | |
Fixed rate loans | ||
Debt Instrument [Line Items] | ||
Weighted average fixed interest rate | 4.46% | |
Weighted average remaining term | 5 years 1 month 6 days | |
Total secured loans | $ 891,319,000 | 528,308,000 |
Variable Rate Loans | ||
Debt Instrument [Line Items] | ||
Total secured loans | $ 143,553,000 | 480,130,000 |
Variable Rate Loans | Floating rate mortgages | ||
Debt Instrument [Line Items] | ||
Weighted average variable rate | 5.45% | |
Weighted average remaining term | 6 years 10 months 24 days | |
Total secured loans | $ 131,153,000 | 426,130,000 |
Variable Rate Loans | Variable rate revolving credit facility | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Weighted average variable rate | 7.96% | |
Weighted average remaining term | 4 years | |
Total secured loans | $ 12,400,000 | $ 54,000,000 |
Debt - Unsecured Promissory Not
Debt - Unsecured Promissory Notes - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2023 property | |
Debt Instrument [Line Items] | |
Number of consolidated properties with refinanced debt | 7 |
Unsecured Promissory Notes | |
Debt Instrument [Line Items] | |
Increase in interest rate | 0.25% |
Debt - Construction Loans (Deta
Debt - Construction Loans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Jan. 31, 2022 | |
Debt Instrument [Line Items] | |||
Amount Drawn | $ 129,991,000 | $ 95,327,000 | |
Floating rate mortgages | |||
Debt Instrument [Line Items] | |||
Loan Amount | $ 43,500,000 | ||
Construction Loan Payable | |||
Debt Instrument [Line Items] | |||
Loan Amount | 186,275,000 | ||
Amount Drawn | 129,991,000 | 95,327,000 | |
Park Avenue | Construction Loan Payable | |||
Debt Instrument [Line Items] | |||
Amount Drawn | 0 | 37,000,000 | |
Cottonwood Broadway | Construction Loan Payable | |||
Debt Instrument [Line Items] | |||
Loan Amount | 44,625,000 | ||
Amount Drawn | $ 41,891,000 | 39,728,000 | |
Cottonwood Broadway | Construction Loan Payable | BSBY | |||
Debt Instrument [Line Items] | |||
Interest Rate | 2.90% | ||
Cottonwood Highland | Construction Loan Payable | |||
Debt Instrument [Line Items] | |||
Loan Amount | $ 44,250,000 | ||
Amount Drawn | $ 39,790,000 | 18,599,000 | |
Cottonwood Highland | Construction Loan Payable | SOFR | |||
Debt Instrument [Line Items] | |||
Interest Rate | 2.55% | ||
805 Riverfront | Construction Loan Payable | |||
Debt Instrument [Line Items] | |||
Loan Amount | $ 55,400,000 | ||
Amount Drawn | $ 48,310,000 | 0 | |
805 Riverfront | Construction Loan Payable | SOFR | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.35% | ||
The Westerly | Construction Loan Payable | |||
Debt Instrument [Line Items] | |||
Loan Amount | $ 42,000,000 | ||
Amount Drawn | $ 0 | $ 0 | |
The Westerly | Construction Loan Payable | SOFR | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3% |
Debt - Unsecured Promissory N_2
Debt - Unsecured Promissory Notes (Details) - USD ($) | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | |||
Unsecured promissory notes, net | $ 41,883,000 | $ 42,953,000 | |
Unsecured Promissory Notes | |||
Debt Instrument [Line Items] | |||
Offering Size | 60,000 | ||
Unsecured promissory notes, net | 41,883,000 | 42,953,000 | |
Unsecured Promissory Notes | 2017 6% Notes | |||
Debt Instrument [Line Items] | |||
Offering Size | $ 35,000 | ||
Interest Rate | 6% | 6.50% | |
Unsecured promissory notes, net | $ 20,308,000 | 20,718,000 | |
Unsecured Promissory Notes | 2017 6% Notes | Fiscal Year 2023 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 6.25% | ||
Unsecured Promissory Notes | 2019 6% Notes | |||
Debt Instrument [Line Items] | |||
Offering Size | $ 25,000 | ||
Interest Rate | 6% | ||
Unsecured promissory notes, net | $ 21,575,000 | $ 22,235,000 |
Debt - Mortgage Notes Repayment
Debt - Mortgage Notes Repayment of Principal (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) extension | Jan. 01, 2023 | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||
2024 | $ 132,550 | ||
2025 | 1,405 | ||
2026 | 105,527 | ||
2027 | 364,181 | ||
2028 | 72,468 | ||
Thereafter | 530,615 | ||
Principal payment on mortgage loans | 1,206,746 | ||
Mortgage notes and revolving credit facility, net | 1,022,452 | $ 1,000,137 | |
Construction loans | |||
Debt Instrument [Line Items] | |||
2024 | 90,201 | ||
2025 | 0 | ||
2026 | 0 | ||
2027 | 0 | ||
2028 | 0 | ||
Thereafter | 39,790 | ||
Principal payment on mortgage loans | 129,991 | ||
Variable rate revolving credit facility | |||
Debt Instrument [Line Items] | |||
Mortgage notes and revolving credit facility, net | 21,600 | ||
805 Riverfront | |||
Debt Instrument [Line Items] | |||
Mortgage notes and revolving credit facility, net | 48,300 | ||
Mortgage Notes and Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
2024 | 466 | ||
2025 | 1,405 | ||
2026 | 105,527 | ||
2027 | 364,181 | ||
2028 | 72,468 | ||
Thereafter | 490,825 | ||
Principal payment on mortgage loans | 1,034,872 | ||
Unsecured Promissory Notes | |||
Debt Instrument [Line Items] | |||
2024 | 41,883 | ||
2025 | 0 | ||
2026 | 0 | ||
2027 | 0 | ||
2028 | 0 | ||
Thereafter | 0 | ||
Principal payment on mortgage loans | $ 41,883 | ||
Unsecured Promissory Notes | 2017 6% Notes | |||
Debt Instrument [Line Items] | |||
Interest rate | 6% | 6.50% | |
Unsecured Promissory Notes | 2019 6% Notes | |||
Debt Instrument [Line Items] | |||
Mortgage notes and revolving credit facility, net | $ 41,900 | ||
Interest rate | 6% | ||
Unsecured Promissory Notes | 805 Riverfront | |||
Debt Instrument [Line Items] | |||
Number of extensions | extension | 2 | ||
Term of extension (in years) | 1 year |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Preferred interest liability | $ 15,300 | $ 0 |
Fair Value, Inputs, Level 2 | Carrying Value | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Preferred interest liability | 15,300 | 0 |
Unsecured promissory notes, net | 41,883 | 42,953 |
Fair Value, Inputs, Level 2 | Carrying Value | Series 2019 Preferred Stock | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Preferred stock series | 124,266 | 127,065 |
Fair Value, Inputs, Level 2 | Carrying Value | Series 2023 Preferred Stock | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Preferred stock series | 83,567 | 0 |
Fair Value, Inputs, Level 2 | Carrying Value | Series 2023-A Preferred Stock | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Preferred stock series | 2,850 | 0 |
Fair Value, Inputs, Level 2 | Carrying Value | Variable rate revolving credit facility | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Variable rate revolving credit facility | 12,400 | 54,000 |
Fair Value, Inputs, Level 2 | Carrying Value | Investments in real estate-related loans | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Investments in real estate-related loans | 8,703 | 0 |
Fair Value, Inputs, Level 2 | Carrying Value | Fixed rate mortgages | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Mortgages | 891,319 | 528,308 |
Fair Value, Inputs, Level 2 | Carrying Value | Floating rate mortgages | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Mortgages | 131,153 | 426,130 |
Fair Value, Inputs, Level 2 | Carrying Value | Construction loans | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Mortgages | 129,991 | 95,327 |
Fair Value, Inputs, Level 2 | Fair Value | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Preferred interest liability | 15,300 | 0 |
Unsecured promissory notes, net | 41,883 | 42,953 |
Fair Value, Inputs, Level 2 | Fair Value | Series 2019 Preferred Stock | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Preferred stock series | 124,266 | 127,065 |
Fair Value, Inputs, Level 2 | Fair Value | Series 2023 Preferred Stock | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Preferred stock series | 83,567 | 0 |
Fair Value, Inputs, Level 2 | Fair Value | Series 2023-A Preferred Stock | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Preferred stock series | 2,850 | 0 |
Fair Value, Inputs, Level 2 | Fair Value | Variable rate revolving credit facility | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Variable rate revolving credit facility | 12,400 | 54,000 |
Fair Value, Inputs, Level 2 | Fair Value | Investments in real estate-related loans | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Investments in real estate-related loans | 8,777 | 0 |
Fair Value, Inputs, Level 2 | Fair Value | Fixed rate mortgages | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Mortgages | 869,248 | 509,134 |
Fair Value, Inputs, Level 2 | Fair Value | Floating rate mortgages | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Mortgages | 129,540 | 421,189 |
Fair Value, Inputs, Level 2 | Fair Value | Construction loans | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Mortgages | $ 129,991 | $ 95,327 |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2022 USD ($) | Jan. 31, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) classesOfPreferredStock shares | Dec. 31, 2022 USD ($) shares | |
Subsidiary, Sale of Stock [Line Items] | |||||
Proceeds from issuance of preferred stock | $ 86,467 | $ 15,472 | |||
Number of shares redeemed (in shares) | shares | 1,456,093 | ||||
Stock repurchased during period, value | $ 98,951 | $ 28,379 | |||
Preferred Stock | Series 2023 Preferred Stock | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of classes of preferred stock outstanding | classesOfPreferredStock | 3 | ||||
Proceeds from issuance of preferred stock | $ 83,600 | ||||
Preferred dividend value incurred | $ 3,200 | ||||
Number of shares redeemed (in shares) | shares | 5,000 | ||||
Stock repurchased during period, value | $ 45 | ||||
Preferred Stock | Series 2023-A Preferred Stock | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of classes of preferred stock outstanding | classesOfPreferredStock | 3 | ||||
Proceeds from issuance of preferred stock | $ 2,900 | ||||
Preferred dividend value incurred | $ 100 | ||||
Number of shares redeemed (in shares) | shares | 0 | ||||
Preferred Stock | Series 2019 Preferred Stock | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of classes of preferred stock outstanding | classesOfPreferredStock | 3 | ||||
Proceeds from issuance of preferred stock | $ 15,500 | ||||
Preferred dividend value incurred | $ 6,900 | $ 6,900 | |||
Number of shares redeemed (in shares) | shares | 279,889 | 27,000 | |||
Stock repurchased during period, value | $ 2,700 | $ 300 | |||
Preferred Stock | Series 2016 Preferred Stock | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Preferred dividend value incurred | $ 2,900 | ||||
Stock repurchased during period, value | $ 139,800 | ||||
Preferred Stock | Series 2017 Preferred Stock | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Stock repurchased during period, value | $ 2,600 |
Preferred Stock - Equity (Detai
Preferred Stock - Equity (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Series 2019 Preferred Stock | ||
Subsidiary, Sale of Stock [Line Items] | ||
Dividend Rate | 5.50% | |
Extension Dividend Rate | 6% | |
Preferred stock outstanding (in shares) | 12,426,596 | 12,706,485 |
Series 2019 Preferred Stock | During First-Year Extension | ||
Subsidiary, Sale of Stock [Line Items] | ||
Extension Dividend Rate | 6% | |
Series 2023 Preferred Stock | ||
Subsidiary, Sale of Stock [Line Items] | ||
Dividend Rate | 6% | |
Extension Dividend Rate | 6.50% | |
Preferred stock outstanding (in shares) | 8,356,724 | 0 |
Series 2023 Preferred Stock | During First-Year Extension | ||
Subsidiary, Sale of Stock [Line Items] | ||
Extension Dividend Rate | 6.25% | |
Series 2023-A Preferred Stock | ||
Subsidiary, Sale of Stock [Line Items] | ||
Dividend Rate | 7% | |
Preferred stock outstanding (in shares) | 285,000 | 0 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Common Stock Outstanding (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Subsidiary, Sale of Stock [Line Items] | ||
Shares outstanding, beginning balance (in shares) | 35,345,708 | 23,613,980 |
Issuance of common stock (in shares) | 1,443,386 | 8,458,590 |
Distribution reinvestment (in shares) | 130,619 | 112,975 |
Exchanges and transfers (in shares) | 479,026 | 280,889 |
Repurchases of common stock (in shares) | (1,456,093) | |
Shares outstanding, ending balance (in shares) | 31,648,281 | 35,345,708 |
CMOF Merger | ||
Subsidiary, Sale of Stock [Line Items] | ||
CRII, CMRI, CMRII and CMOF Merger (in shares) | 4,335,367 | |
Repurchases of common stock (in shares) | (5,750,458) | |
Class T | ||
Subsidiary, Sale of Stock [Line Items] | ||
Shares outstanding, beginning balance (in shares) | 4,815,122 | 0 |
Issuance of common stock (in shares) | 644,374 | 4,814,430 |
Distribution reinvestment (in shares) | 31,289 | 10,832 |
Exchanges and transfers (in shares) | (1,723) | 0 |
Repurchases of common stock (in shares) | (1,571,844) | (10,140) |
Shares outstanding, ending balance (in shares) | 3,917,218 | 4,815,122 |
Class T | CMOF Merger | ||
Subsidiary, Sale of Stock [Line Items] | ||
CRII, CMRI, CMRII and CMOF Merger (in shares) | 0 | |
Class D | ||
Subsidiary, Sale of Stock [Line Items] | ||
Shares outstanding, beginning balance (in shares) | 64,673 | 0 |
Issuance of common stock (in shares) | 148,629 | 64,645 |
Distribution reinvestment (in shares) | 682 | 28 |
Exchanges and transfers (in shares) | 0 | 0 |
Repurchases of common stock (in shares) | 0 | |
Shares outstanding, ending balance (in shares) | 202,743 | 64,673 |
Class D | CMOF Merger | ||
Subsidiary, Sale of Stock [Line Items] | ||
CRII, CMRI, CMRII and CMOF Merger (in shares) | 0 | |
Repurchases of common stock (in shares) | (11,241) | |
Class I | ||
Subsidiary, Sale of Stock [Line Items] | ||
Shares outstanding, beginning balance (in shares) | 3,861,049 | 151,286 |
Issuance of common stock (in shares) | 650,383 | 3,579,515 |
Distribution reinvestment (in shares) | 24,344 | 8,334 |
Exchanges and transfers (in shares) | 480,749 | 280,889 |
Repurchases of common stock (in shares) | (158,975) | |
Shares outstanding, ending balance (in shares) | 4,296,443 | 3,861,049 |
Class I | CMOF Merger | ||
Subsidiary, Sale of Stock [Line Items] | ||
CRII, CMRI, CMRII and CMOF Merger (in shares) | 0 | |
Repurchases of common stock (in shares) | (720,082) | |
Class A | ||
Subsidiary, Sale of Stock [Line Items] | ||
Shares outstanding, beginning balance (in shares) | 26,604,864 | 23,445,174 |
Issuance of common stock (in shares) | 0 | 0 |
Distribution reinvestment (in shares) | 74,304 | 93,768 |
Exchanges and transfers (in shares) | 0 | 17,533 |
Repurchases of common stock (in shares) | (1,286,978) | |
Shares outstanding, ending balance (in shares) | 23,231,877 | 26,604,864 |
Class A | CMOF Merger | ||
Subsidiary, Sale of Stock [Line Items] | ||
CRII, CMRI, CMRII and CMOF Merger (in shares) | 4,335,367 | |
Repurchases of common stock (in shares) | (3,447,291) | |
Class TX | ||
Subsidiary, Sale of Stock [Line Items] | ||
Shares outstanding, beginning balance (in shares) | 0 | 17,520 |
Issuance of common stock (in shares) | 0 | 0 |
Distribution reinvestment (in shares) | 0 | 13 |
Exchanges and transfers (in shares) | 0 | (17,533) |
Repurchases of common stock (in shares) | 0 | |
Shares outstanding, ending balance (in shares) | 0 | 0 |
Class TX | CMOF Merger | ||
Subsidiary, Sale of Stock [Line Items] | ||
CRII, CMRI, CMRII and CMOF Merger (in shares) | 0 | |
Repurchases of common stock (in shares) | 0 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | 19 Months Ended | |||
Sep. 30, 2023 | May 31, 2022 | Jan. 31, 2022 | Apr. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | |
Subsidiary, Sale of Stock [Line Items] | |||||||
Aggregate distributions paid | $ 24,200 | $ 20,000 | |||||
Distributions paid in cash | 21,871 | 17,813 | |||||
Dividend reinvestment plan, cash paid | $ 2,400 | $ 2,200 | |||||
Common stock, dividend rate (in USD per share) | $ 0.06000000 | $ 0.0583333 | $ 0.05916667 | $ 0.06083333 | |||
Dividend declared (in dollars per share) | $ 0.72 | $ 0.70 | $ 0.71 | $ 0.73 | |||
Distributions to stockholders return of capital | 100% | 100% | 100% | ||||
Repurchases of common stock (in shares) | 1,456,093 | ||||||
Repurchase of common stock/OP Units | $ 95,404 | $ 22,635 | |||||
Series A Convertible Preferred Stock | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Dividend Rate | 8% | ||||||
Liquidation preference (in dollars per share) | $ 10 | ||||||
Preferred Stock, issued (in shares) | 215,277 | 215,277 | |||||
Preferred stock outstanding (in shares) | 215,277 | 215,277 | |||||
Common Stock | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Repurchases of common stock (in shares) | 5,750,458 | 1,456,093 | |||||
Repurchase of common stock/OP Units | $ 95,300 | $ 26,900 | |||||
Average repurchase price (in dollars per share) | $ 16.57 | $ 18.47 |
Promote from Incentive Alloca_2
Promote from Incentive Allocation Agreement (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2018 realEstateUnit | |
Promote from Incentive Allocation Agreement [Abstract] | ||||
Promote from incentive allocation agreement | $ | $ 30,600 | $ 119 | $ 30,702 | |
Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of real estate properties disposed | realEstateUnit | 12 |
Related-Party Transactions (Det
Related-Party Transactions (Details) | 12 Months Ended | |||||
Apr. 07, 2022 USD ($) | May 07, 2021 | Dec. 31, 2023 USD ($) project | Dec. 31, 2022 USD ($) | Jul. 08, 2022 project | Jun. 28, 2022 project | |
Related Party Transaction [Line Items] | ||||||
Performance participation allocation | $ 0 | $ 20,320,000 | ||||
Joint venture, number of projects | project | 3 | 2 | 2 | |||
Disposed of by Sale | Alpha Mill Apartments | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership in equity transaction | 10.30% | |||||
Consideration received | $ 8,200,000 | |||||
Independent Director Compensation | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage threshold operating expenses must exceed average invested assets to be reimbursable | 2% | |||||
Percentage threshold operating expenses must exceed net income to be reimbursable | 25% | |||||
Required reimbursement | $ 0 | 0 | ||||
Independent Director Compensation | LTIP Units | ||||||
Related Party Transaction [Line Items] | ||||||
Grant value | $ 85,000 | 85,000 | ||||
LTIP unit vesting period (in years) | 1 year | |||||
Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Acquisition expense reimbursements | $ 0 | 0 | ||||
Affiliated Entity | Independent Director Compensation | ||||||
Related Party Transaction [Line Items] | ||||||
Gross asset value of CROP percentage | 0.0625% | |||||
Net asset value of CROP percentage | 0.125% | |||||
Asset management fees | 17,300,000 | 17,800,000 | ||||
Percentage of total return | 5% | |||||
Percentage of annual total return | 12.50% | |||||
Affiliated Entity | Independent Director Compensation | Limited Partners | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of total return | 12.50% | |||||
Performance participation allocation | $ 0 | $ 20,300,000 | ||||
Affiliated Entity | Independent Director Compensation | Other Ownership Interest | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of total return | 87.50% | |||||
Co-venturer | CW Block C, LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Percent of development project owned | 82.40% | |||||
Co-venturer | CW Block C, LLC | Affiliated Members | ||||||
Related Party Transaction [Line Items] | ||||||
Capital contribution | $ 10,900,000 | |||||
Independent Directors | Independent Director Compensation | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses from transactions with related parties | 50,000 | |||||
Independent Directors | Independent Director Compensation | Chair of Audit Committee | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses from transactions with related parties | 15,000 | |||||
Independent Directors | Independent Director Compensation | Char of Compensation Committee | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses from transactions with related parties | 10,000 | |||||
Independent Directors | Independent Director Compensation | Chair of Conflicts Committee | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses from transactions with related parties | $ 10,000 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) vote shares | Dec. 31, 2022 USD ($) | |
Noncontrolling Interest [Line Items] | ||
Distributions to investors | $ 48,506 | $ 47,496 |
Voting rights | vote | 0 | |
Not Wholly Owned | Minimum | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest, ownership percentage by noncontrolling owners | 1% | |
Not Wholly Owned | Maximum | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest, ownership percentage by noncontrolling owners | 63% | |
Not Wholly Owned | Weighted Average | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest, ownership percentage by noncontrolling owners | 11% | |
OP Units | ||
Noncontrolling Interest [Line Items] | ||
Distributions to investors | $ 23,200 | 22,200 |
LTIP Units | ||
Noncontrolling Interest [Line Items] | ||
Units annual vesting percentage | 10% | |
Share conversion ratio | 1 | |
Number of unvested awards outstanding (in shares) | shares | 602,895 | |
Share-based compensation | $ 2,800 | $ 3,700 |
Total unrecognized compensation expense | $ 5,500 | |
Performance LTIP | ||
Noncontrolling Interest [Line Items] | ||
Number of unvested awards outstanding (in shares) | shares | 597,105 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | May 07, 2021 | |
Subsidiary, Sale of Stock [Line Items] | |||
Construction loans, net | $ 129,991,000 | $ 95,327,000 | |
Stock repurchased during period, value | 98,951,000 | $ 28,379,000 | |
Monthly redemptions, percent of net asset value, maximum | 2% | ||
Quarterly redemptions, percent of net asset value, maximum | 5% | ||
Percent of most recently disclosed net asset value | 95% | ||
Series A Convertible | |||
Subsidiary, Sale of Stock [Line Items] | |||
Stock repurchased during period, value | $ 0 | ||
Class A and Class TX Common Stock | |||
Subsidiary, Sale of Stock [Line Items] | |||
Maximum percent of net asset value | 95% | ||
Class A and Class TX Common Stock | Four Years After Acquisition | |||
Subsidiary, Sale of Stock [Line Items] | |||
Maximum percent of net asset value | 85% | ||
Class A and Class TX Common Stock | Six Years After Acquisition | |||
Subsidiary, Sale of Stock [Line Items] | |||
Maximum percent of net asset value | 90% | ||
Class A and Class TX Common Stock | Six Years Or More | |||
Subsidiary, Sale of Stock [Line Items] | |||
Stock repurchase program, redemption price, percentage | 100% | ||
Class A and Class TX Common Stock | Five Years And Less Than Six Years | |||
Subsidiary, Sale of Stock [Line Items] | |||
Stock repurchase program, redemption price, percentage | 95% | ||
Class A and Class TX Common Stock | Three Years And Less Than Five Years | |||
Subsidiary, Sale of Stock [Line Items] | |||
Stock repurchase program, redemption price, percentage | 90% | ||
Class A and Class TX Common Stock | One Year And Less Than Three Years | |||
Subsidiary, Sale of Stock [Line Items] | |||
Stock repurchase program, redemption price, percentage | 85% | ||
Common Limited OP Units | One Year After Acquisition | |||
Subsidiary, Sale of Stock [Line Items] | |||
Maximum percent of net asset value | 80% | ||
Cottonwood Residential II | |||
Subsidiary, Sale of Stock [Line Items] | |||
Percent of assumed payment guarantee provided | 50% | ||
Construction loans, net | $ 53,600,000 | ||
Percent of borrowers owned | 14.18% | ||
417 Callowhill | |||
Subsidiary, Sale of Stock [Line Items] | |||
Payments to acquire investments | $ 32,100,000 | ||
Remaining commitment of equity investment | 1,300,000 | ||
2215 Hollywood Mezzanine | |||
Subsidiary, Sale of Stock [Line Items] | |||
Payments to acquire investments | 2,000,000 | ||
Remaining commitment of equity investment | 8,000,000 | ||
Monrovia Station Junior Mezzanine Loan | |||
Subsidiary, Sale of Stock [Line Items] | |||
Payments to acquire investments | 6,800,000 | ||
Remaining commitment of equity investment | $ 13,400,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Share Repurchase Program (Details) | Dec. 31, 2023 $ / shares |
Less than 1 year | Series 2019 Preferred Stock | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | $ 8.80 |
Less than 1 year | Series 2023 Preferred Stock | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9 |
Less than 1 year | Series 2023-A Preferred Stock | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9.20 |
Less than 1 year | Series A Convertible | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9 |
1 year | Series 2019 Preferred Stock | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9 |
1 year | Series 2023 Preferred Stock | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9 |
1 year | Series 2023-A Preferred Stock | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9.40 |
1 year | Series A Convertible | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9.10 |
2 years | Series 2019 Preferred Stock | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9.20 |
2 years | Series 2023 Preferred Stock | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9.20 |
2 years | Series 2023-A Preferred Stock | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9.60 |
2 years | Series A Convertible | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9.20 |
3 years | Series 2019 Preferred Stock | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9.40 |
3 years | Series 2023 Preferred Stock | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9.40 |
3 years | Series 2023-A Preferred Stock | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9.60 |
3 years | Series A Convertible | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9.30 |
4 years | Series 2019 Preferred Stock | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9.60 |
4 years | Series 2023 Preferred Stock | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9.60 |
4 years | Series 2023-A Preferred Stock | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9.60 |
4 years | Series A Convertible | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9.40 |
5 years | Series 2019 Preferred Stock | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9.80 |
5 years | Series 2023 Preferred Stock | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9.80 |
5 years | Series 2023-A Preferred Stock | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9.60 |
5 years | Series A Convertible | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9.40 |
6 years | Series 2019 Preferred Stock | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9.80 |
6 years | Series 2023 Preferred Stock | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9.80 |
6 years | Series 2023-A Preferred Stock | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9.60 |
6 years | Series A Convertible | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 9.80 |
A stockholder’s death or complete disability, 2 years or more | Series 2019 Preferred Stock | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 10 |
A stockholder’s death or complete disability, 2 years or more | Series 2023 Preferred Stock | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 10 |
A stockholder’s death or complete disability, 2 years or more | Series 2023-A Preferred Stock | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | 10 |
A stockholder’s death or complete disability, 2 years or more | Series A Convertible | |
Share Repurchase Program [Line Items] | |
Repurchase price (in dollars per share) | $ 10 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||
Mar. 28, 2024 | Feb. 29, 2024 | Feb. 07, 2024 | Jan. 24, 2024 | Jan. 09, 2024 | Sep. 08, 2023 | Mar. 25, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 27, 2024 | Dec. 15, 2023 | Feb. 14, 2023 | Feb. 13, 2023 | |
Subsequent Event [Line Items] | |||||||||||||
Issuance of stock | $ 168,477,000 | ||||||||||||
Issuance of common stock (in shares) | 1,443,386 | 8,458,590 | |||||||||||
LTIP | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Net asset value per share (in dollars per share) | $ 14.4754 | ||||||||||||
Preferred Stock | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Issuance of stock | $ 2,140,000 | ||||||||||||
Variable Interest Entity, Primary Beneficiary | 805 Riverfront | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Payments to acquire equity method investments | $ 6,000,000 | ||||||||||||
Cottonwood Lighthouse Point | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Ownership percentage | 86.80% | 100% | |||||||||||
Series 2023-A Preferred Stock | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Preferred stock outstanding (in shares) | 285,000 | 0 | |||||||||||
Subsequent event | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Value of shares in offering | $ 5,981,000 | ||||||||||||
Subsequent event | Preferred Stock | Series 2023 Private Offering | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Number of shares issued and sold (in shares) | 674,165 | ||||||||||||
Value of shares in offering | $ 6,700,000 | ||||||||||||
Sale of stock, selling commissions | 400,000 | ||||||||||||
Sale of stock, placement fees | $ 200,000 | ||||||||||||
Preferred stock outstanding (in shares) | 9,030,889 | ||||||||||||
Subsequent event | Preferred Stock | Series 2023-A Private Offering | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Number of shares issued and sold (in shares) | 10,000 | ||||||||||||
Value of shares in offering | $ 100,000 | ||||||||||||
Sale of stock, selling commissions | 2,000 | ||||||||||||
Sale of stock, placement fees | $ 750 | ||||||||||||
Preferred stock outstanding (in shares) | 295,000 | ||||||||||||
Subsequent event | Preferred Stock | Series A Convertible Private Offering | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Number of shares issued and sold (in shares) | 1,258,832 | ||||||||||||
Value of shares in offering | $ 12,600,000 | ||||||||||||
Sale of stock, selling commissions | 700,000 | ||||||||||||
Sale of stock, placement fees | $ 400,000 | ||||||||||||
Preferred stock outstanding (in shares) | 1,474,108 | ||||||||||||
Subsequent event | Cottonwood West Palm | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Proceeds from issuance of debt | $ 34,000,000 | ||||||||||||
Subsequent event | Variable Interest Entity, Primary Beneficiary | 805 Riverfront | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Payments to acquire equity method investments | $ 0 | ||||||||||||
Subsequent event | Time Based Shares | Executive Officer | LTIP | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Issuance of stock | $ 1,609,125 | ||||||||||||
Subsequent event | Time Based Shares | Executive Officer | LTIP | January 1, 2025 | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Units annual vesting percentage | 25% | ||||||||||||
Subsequent event | Time Based Shares | Executive Officer | LTIP | January 1, 2026 | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Units annual vesting percentage | 25% | ||||||||||||
Subsequent event | Time Based Shares | Executive Officer | LTIP | January 1, 2027 | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Units annual vesting percentage | 25% | ||||||||||||
Subsequent event | Time Based Shares | Executive Officer | LTIP | January 1, 2028 | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Units annual vesting percentage | 25% | ||||||||||||
Subsequent event | Performance Shares | Executive Officer | LTIP | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Issuance of stock | $ 2,988,375 | ||||||||||||
Performance period | 3 years | ||||||||||||
Subsequent event | Restricted Stock Units (RSUs) | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Issuance of common stock (in shares) | 34,399 | ||||||||||||
LTIP unit vesting period (in years) | 4 years | ||||||||||||
Subsequent event | Restricted Stock Units (RSUs) | 2022 Equity Incentive Plan | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Issuance of common stock (in shares) | 16,254 | ||||||||||||
Subsequent event | Cottonwood Lighthouse Point | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Ownership percentage | 100% | 86.80% | |||||||||||
Subsequent event | Cottonwood Lighthouse Point | OP Units | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
CRII, CMRI, CMRII and CMOF Merger (in shares) | 259,246 | ||||||||||||
Subsequent event | Series 2023-A Preferred Stock | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Hold period | 2 years | ||||||||||||
Amendment time period | 5 years |
Subsequent Events - Status of t
Subsequent Events - Status of the Follow-on Offering (Details) - Subsequent event $ in Thousands | 3 Months Ended |
Mar. 25, 2024 USD ($) shares | |
Subsequent Event [Line Items] | |
Gross Proceeds | $ | $ 5,981 |
Primary Offering | |
Subsequent Event [Line Items] | |
Shares issued (in shares) | 437,388 |
Distribution Reinvestment Plan | |
Subsequent Event [Line Items] | |
Shares issued (in shares) | 53,187 |
Class T | |
Subsequent Event [Line Items] | |
Gross Proceeds | $ | $ 2,023 |
Class T | Primary Offering | |
Subsequent Event [Line Items] | |
Shares issued (in shares) | 141,143 |
Class T | Distribution Reinvestment Plan | |
Subsequent Event [Line Items] | |
Shares issued (in shares) | 14,575 |
Class D | |
Subsequent Event [Line Items] | |
Gross Proceeds | $ | $ 35 |
Class D | Primary Offering | |
Subsequent Event [Line Items] | |
Shares issued (in shares) | 2,497 |
Class D | Distribution Reinvestment Plan | |
Subsequent Event [Line Items] | |
Shares issued (in shares) | 250 |
Class I | |
Subsequent Event [Line Items] | |
Gross Proceeds | $ | $ 3,923 |
Class I | Primary Offering | |
Subsequent Event [Line Items] | |
Shares issued (in shares) | 293,748 |
Class I | Distribution Reinvestment Plan | |
Subsequent Event [Line Items] | |
Shares issued (in shares) | 10,605 |
Class A | |
Subsequent Event [Line Items] | |
Gross Proceeds | $ | $ 0 |
Class A | Primary Offering | |
Subsequent Event [Line Items] | |
Shares issued (in shares) | 0 |
Class A | Distribution Reinvestment Plan | |
Subsequent Event [Line Items] | |
Shares issued (in shares) | 27,757 |
Subsequent Events - Distributio
Subsequent Events - Distributions Declared (Details) - $ / shares | 1 Months Ended | 3 Months Ended | 19 Months Ended | ||||
Mar. 31, 2024 | Feb. 29, 2024 | Jan. 31, 2024 | May 31, 2022 | Jan. 31, 2022 | Apr. 30, 2022 | Dec. 31, 2023 | |
Subsequent Event [Line Items] | |||||||
Annually (in dollars per share) | $ 0.72 | $ 0.70 | $ 0.71 | $ 0.73 | |||
Forecast | |||||||
Subsequent Event [Line Items] | |||||||
Monthly rate (in dollars per share) | $ 0.06083333 | ||||||
Annually (in dollars per share) | $ 0.73 | ||||||
Subsequent event | |||||||
Subsequent Event [Line Items] | |||||||
Monthly rate (in dollars per share) | $ 0.06083333 | $ 0.06083333 | |||||
Annually (in dollars per share) | $ 0.73 | $ 0.73 |
Schedule III - Real Estate an_2
Schedule III - Real Estate and Accumulated Depreciation - Schedule of Real Estate and Accumulated Depreciation (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) realEstateUnit | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Number of Units | realEstateUnit | 7,243 | ||
Encumbrances | $ (1,164,863) | ||
Initial cost to company, land | 257,553 | ||
Initial cost to company, building and improvements | 1,365,799 | ||
Cost Capitalized Subsequent to Acquisition | 182,058 | ||
Gross amount carried, land | 257,553 | ||
Gross amount carried, buildings and improvements | 1,547,857 | ||
Gross amount carried, total | 1,805,410 | $ 1,816,877 | $ 1,476,518 |
Accumulated depreciation and amortization | (156,264) | $ (119,270) | $ (68,035) |
Aggregate cost of real estate for federal income tax purposes | $ 1,300,000 | ||
Buildings | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Life used for depreciation (in years) | 30 years | ||
Land improvements | Minimum | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Life used for depreciation (in years) | 5 years | ||
Land improvements | Maximum | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Life used for depreciation (in years) | 15 years | ||
Cason Estates | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Ownership Percent | 100% | ||
Number of Units | realEstateUnit | 262 | ||
Encumbrances | $ (37,462) | ||
Initial cost to company, land | 4,806 | ||
Initial cost to company, building and improvements | 46,666 | ||
Cost Capitalized Subsequent to Acquisition | 806 | ||
Gross amount carried, land | 4,806 | ||
Gross amount carried, buildings and improvements | 47,472 | ||
Gross amount carried, total | 52,278 | ||
Accumulated depreciation and amortization | $ (6,327) | ||
Cottonwood Apartments | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Ownership Percent | 100% | ||
Number of Units | realEstateUnit | 264 | ||
Encumbrances | $ (35,430) | ||
Initial cost to company, land | 6,556 | ||
Initial cost to company, building and improvements | 40,745 | ||
Cost Capitalized Subsequent to Acquisition | 1,648 | ||
Gross amount carried, land | 6,556 | ||
Gross amount carried, buildings and improvements | 42,393 | ||
Gross amount carried, total | 48,949 | ||
Accumulated depreciation and amortization | $ (5,446) | ||
Cottonwood Clermont | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Ownership Percent | 100% | ||
Number of Units | realEstateUnit | 230 | ||
Encumbrances | $ (34,961) | ||
Initial cost to company, land | 5,705 | ||
Initial cost to company, building and improvements | 76,805 | ||
Cost Capitalized Subsequent to Acquisition | 225 | ||
Gross amount carried, land | 5,705 | ||
Gross amount carried, buildings and improvements | 77,030 | ||
Gross amount carried, total | 82,735 | ||
Accumulated depreciation and amortization | $ (5,742) | ||
Cottonwood Reserve | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Ownership Percent | 91.10% | ||
Number of Units | realEstateUnit | 352 | ||
Encumbrances | $ (48,049) | ||
Initial cost to company, land | 12,634 | ||
Initial cost to company, building and improvements | 64,168 | ||
Cost Capitalized Subsequent to Acquisition | 1,190 | ||
Gross amount carried, land | 12,634 | ||
Gross amount carried, buildings and improvements | 65,358 | ||
Gross amount carried, total | 77,992 | ||
Accumulated depreciation and amortization | $ (9,131) | ||
Cottonwood Ridgeview | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Ownership Percent | 100% | ||
Number of Units | realEstateUnit | 322 | ||
Encumbrances | $ (65,300) | ||
Initial cost to company, land | 9,275 | ||
Initial cost to company, building and improvements | 59,392 | ||
Cost Capitalized Subsequent to Acquisition | 747 | ||
Gross amount carried, land | 9,275 | ||
Gross amount carried, buildings and improvements | 60,139 | ||
Gross amount carried, total | 69,414 | ||
Accumulated depreciation and amortization | $ (4,515) | ||
Cottonwood West Palm | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Ownership Percent | 100% | ||
Number of Units | realEstateUnit | 245 | ||
Encumbrances | $ (47,978) | ||
Initial cost to company, land | 9,380 | ||
Initial cost to company, building and improvements | 57,073 | ||
Cost Capitalized Subsequent to Acquisition | 818 | ||
Gross amount carried, land | 9,380 | ||
Gross amount carried, buildings and improvements | 57,891 | ||
Gross amount carried, total | 67,271 | ||
Accumulated depreciation and amortization | $ (11,217) | ||
Cottonwood Westside | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Ownership Percent | 100% | ||
Number of Units | realEstateUnit | 197 | ||
Encumbrances | $ (26,986) | ||
Initial cost to company, land | 8,641 | ||
Initial cost to company, building and improvements | 39,324 | ||
Cost Capitalized Subsequent to Acquisition | 482 | ||
Gross amount carried, land | 8,641 | ||
Gross amount carried, buildings and improvements | 39,806 | ||
Gross amount carried, total | 48,447 | ||
Accumulated depreciation and amortization | $ (5,138) | ||
Enclave on Golden Triangle | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Ownership Percent | 98.90% | ||
Number of Units | realEstateUnit | 273 | ||
Encumbrances | $ (48,400) | ||
Initial cost to company, land | 4,888 | ||
Initial cost to company, building and improvements | 46,712 | ||
Cost Capitalized Subsequent to Acquisition | 879 | ||
Gross amount carried, land | 4,888 | ||
Gross amount carried, buildings and improvements | 47,591 | ||
Gross amount carried, total | 52,479 | ||
Accumulated depreciation and amortization | $ (5,812) | ||
Heights at Meridian | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Ownership Percent | 100% | ||
Number of Units | realEstateUnit | 339 | ||
Encumbrances | $ (53,401) | ||
Initial cost to company, land | 5,971 | ||
Initial cost to company, building and improvements | 74,022 | ||
Cost Capitalized Subsequent to Acquisition | 767 | ||
Gross amount carried, land | 5,971 | ||
Gross amount carried, buildings and improvements | 74,789 | ||
Gross amount carried, total | 80,760 | ||
Accumulated depreciation and amortization | $ (9,513) | ||
Melrose | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Ownership Percent | 100% | ||
Number of Units | realEstateUnit | 220 | ||
Encumbrances | $ (56,600) | ||
Initial cost to company, land | 8,822 | ||
Initial cost to company, building and improvements | 58,676 | ||
Cost Capitalized Subsequent to Acquisition | 490 | ||
Gross amount carried, land | 8,822 | ||
Gross amount carried, buildings and improvements | 59,166 | ||
Gross amount carried, total | 67,988 | ||
Accumulated depreciation and amortization | $ (8,156) | ||
Melrose Phase II | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Ownership Percent | 100% | ||
Number of Units | realEstateUnit | 139 | ||
Encumbrances | $ (32,400) | ||
Initial cost to company, land | 5,156 | ||
Initial cost to company, building and improvements | 34,526 | ||
Cost Capitalized Subsequent to Acquisition | 25 | ||
Gross amount carried, land | 5,156 | ||
Gross amount carried, buildings and improvements | 34,551 | ||
Gross amount carried, total | 39,707 | ||
Accumulated depreciation and amortization | $ (1,319) | ||
Parc Westborough | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Ownership Percent | 100% | ||
Number of Units | realEstateUnit | 249 | ||
Encumbrances | $ (12,400) | ||
Initial cost to company, land | 12,759 | ||
Initial cost to company, building and improvements | 61,302 | ||
Cost Capitalized Subsequent to Acquisition | 526 | ||
Gross amount carried, land | 12,759 | ||
Gross amount carried, buildings and improvements | 61,828 | ||
Gross amount carried, total | 74,587 | ||
Accumulated depreciation and amortization | $ (8,549) | ||
Park Avenue | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Ownership Percent | 100% | ||
Number of Units | realEstateUnit | 234 | ||
Encumbrances | $ (43,453) | ||
Initial cost to company, land | 12,369 | ||
Initial cost to company, building and improvements | 29,931 | ||
Cost Capitalized Subsequent to Acquisition | 25,508 | ||
Gross amount carried, land | 12,369 | ||
Gross amount carried, buildings and improvements | 55,439 | ||
Gross amount carried, total | 67,808 | ||
Accumulated depreciation and amortization | $ (3,559) | ||
Pavilions | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Ownership Percent | 96.40% | ||
Number of Units | realEstateUnit | 240 | ||
Encumbrances | $ (58,500) | ||
Initial cost to company, land | 5,924 | ||
Initial cost to company, building and improvements | 55,177 | ||
Cost Capitalized Subsequent to Acquisition | 870 | ||
Gross amount carried, land | 5,924 | ||
Gross amount carried, buildings and improvements | 56,047 | ||
Gross amount carried, total | 61,971 | ||
Accumulated depreciation and amortization | $ (6,808) | ||
Raveneaux | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Ownership Percent | 97% | ||
Number of Units | realEstateUnit | 382 | ||
Encumbrances | $ (47,400) | ||
Initial cost to company, land | 6,249 | ||
Initial cost to company, building and improvements | 51,251 | ||
Cost Capitalized Subsequent to Acquisition | 862 | ||
Gross amount carried, land | 6,249 | ||
Gross amount carried, buildings and improvements | 52,113 | ||
Gross amount carried, total | 58,362 | ||
Accumulated depreciation and amortization | $ (6,739) | ||
Regatta | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Ownership Percent | 100% | ||
Number of Units | realEstateUnit | 490 | ||
Encumbrances | $ (35,367) | ||
Initial cost to company, land | 8,449 | ||
Initial cost to company, building and improvements | 39,651 | ||
Cost Capitalized Subsequent to Acquisition | 1,360 | ||
Gross amount carried, land | 8,449 | ||
Gross amount carried, buildings and improvements | 41,011 | ||
Gross amount carried, total | 49,460 | ||
Accumulated depreciation and amortization | $ (5,818) | ||
Retreat at Peachtree City | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Ownership Percent | 100% | ||
Number of Units | realEstateUnit | 312 | ||
Encumbrances | $ (58,412) | ||
Initial cost to company, land | 5,669 | ||
Initial cost to company, building and improvements | 66,888 | ||
Cost Capitalized Subsequent to Acquisition | 1,013 | ||
Gross amount carried, land | 5,669 | ||
Gross amount carried, buildings and improvements | 67,901 | ||
Gross amount carried, total | 73,570 | ||
Accumulated depreciation and amortization | $ (9,310) | ||
Scott Mountain | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Ownership Percent | 95.80% | ||
Number of Units | realEstateUnit | 262 | ||
Encumbrances | $ (48,373) | ||
Initial cost to company, land | 6,952 | ||
Initial cost to company, building and improvements | 63,758 | ||
Cost Capitalized Subsequent to Acquisition | 659 | ||
Gross amount carried, land | 6,952 | ||
Gross amount carried, buildings and improvements | 64,417 | ||
Gross amount carried, total | 71,369 | ||
Accumulated depreciation and amortization | $ (7,700) | ||
Stonebriar of Frisco | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Ownership Percent | 84.20% | ||
Number of Units | realEstateUnit | 306 | ||
Encumbrances | $ (53,600) | ||
Initial cost to company, land | 5,737 | ||
Initial cost to company, building and improvements | 53,463 | ||
Cost Capitalized Subsequent to Acquisition | 1,739 | ||
Gross amount carried, land | 5,737 | ||
Gross amount carried, buildings and improvements | 55,202 | ||
Gross amount carried, total | 60,939 | ||
Accumulated depreciation and amortization | $ (6,691) | ||
Sugarmont | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Ownership Percent | 99% | ||
Number of Units | realEstateUnit | 341 | ||
Encumbrances | $ (91,200) | ||
Initial cost to company, land | 17,838 | ||
Initial cost to company, building and improvements | 94,662 | ||
Cost Capitalized Subsequent to Acquisition | 27,673 | ||
Gross amount carried, land | 17,838 | ||
Gross amount carried, buildings and improvements | 122,335 | ||
Gross amount carried, total | 140,173 | ||
Accumulated depreciation and amortization | $ (9,711) | ||
Limited rights ownership percentage | 1% | ||
Summer Park | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Ownership Percent | 98.70% | ||
Number of Units | realEstateUnit | 358 | ||
Encumbrances | $ (52,398) | ||
Initial cost to company, land | 9,474 | ||
Initial cost to company, building and improvements | 66,200 | ||
Cost Capitalized Subsequent to Acquisition | 944 | ||
Gross amount carried, land | 9,474 | ||
Gross amount carried, buildings and improvements | 67,144 | ||
Gross amount carried, total | 76,618 | ||
Accumulated depreciation and amortization | $ (8,908) | ||
The Marq Highland Park | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Ownership Percent | 100% | ||
Number of Units | realEstateUnit | 239 | ||
Encumbrances | $ (46,802) | ||
Initial cost to company, land | 6,280 | ||
Initial cost to company, building and improvements | 59,424 | ||
Cost Capitalized Subsequent to Acquisition | 657 | ||
Gross amount carried, land | 6,280 | ||
Gross amount carried, buildings and improvements | 60,081 | ||
Gross amount carried, total | 66,361 | ||
Accumulated depreciation and amortization | $ (8,266) | ||
Cottonwood Broadway | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Ownership Percent | 100% | ||
Number of Units | realEstateUnit | 254 | ||
Encumbrances | $ (41,891) | ||
Initial cost to company, land | 11,042 | ||
Initial cost to company, building and improvements | 30,958 | ||
Cost Capitalized Subsequent to Acquisition | 37,263 | ||
Gross amount carried, land | 11,042 | ||
Gross amount carried, buildings and improvements | 68,221 | ||
Gross amount carried, total | 79,263 | ||
Accumulated depreciation and amortization | $ (1,334) | ||
Cottonwood Highland | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Ownership Percent | 36.90% | ||
Number of Units | realEstateUnit | 250 | ||
Encumbrances | $ (39,790) | ||
Initial cost to company, land | 7,405 | ||
Initial cost to company, building and improvements | 1,695 | ||
Cost Capitalized Subsequent to Acquisition | 55,881 | ||
Gross amount carried, land | 7,405 | ||
Gross amount carried, buildings and improvements | 57,576 | ||
Gross amount carried, total | 64,981 | ||
Accumulated depreciation and amortization | $ (271) | ||
805 Riverfront | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Number of Units | realEstateUnit | 285 | ||
Encumbrances | $ (48,310) | ||
Initial cost to company, land | 11,279 | ||
Initial cost to company, building and improvements | 92,100 | ||
Cost Capitalized Subsequent to Acquisition | 1,853 | ||
Gross amount carried, land | 11,279 | ||
Gross amount carried, buildings and improvements | 93,953 | ||
Gross amount carried, total | 105,232 | ||
Accumulated depreciation and amortization | $ (284) | ||
The Westerly | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Ownership Percent | 82.40% | ||
Number of Units | realEstateUnit | 198 | ||
Encumbrances | $ 0 | ||
Initial cost to company, land | 5,996 | ||
Initial cost to company, building and improvements | 1,150 | ||
Cost Capitalized Subsequent to Acquisition | 12,861 | ||
Gross amount carried, land | 5,996 | ||
Gross amount carried, buildings and improvements | 14,011 | ||
Gross amount carried, total | 20,007 | ||
Accumulated depreciation and amortization | 0 | ||
Other Developments | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial cost to company, land | 42,297 | ||
Initial cost to company, building and improvements | 80 | ||
Cost Capitalized Subsequent to Acquisition | 4,312 | ||
Gross amount carried, land | 42,297 | ||
Gross amount carried, buildings and improvements | 4,392 | ||
Gross amount carried, total | 46,689 | ||
Accumulated depreciation and amortization | $ 0 |
Schedule III - Real Estate an_3
Schedule III - Real Estate and Accumulated Depreciation - Real Estate Investment and Accumulated Depreciation Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Real estate assets: | ||
Beginning balance | $ 1,816,877 | $ 1,476,518 |
Acquisitions | 143,727 | 284,138 |
Improvements and development costs | 46,229 | 56,221 |
Dispositions and deconsolidations | (201,423) | 0 |
Ending balance | 1,805,410 | 1,816,877 |
Accumulated depreciation and amortization: | ||
Beginning balance | (119,270) | (68,035) |
Depreciation and amortization | (55,840) | (51,235) |
Dispositions and deconsolidations | 18,846 | 0 |
Ending balance | $ (156,264) | $ (119,270) |