Cottonwood Communities Completes Acquisition of $500M RealSource Properties Multifamily Portfolio (Form 8-K)

Cottonwood Communities Completes Acquisition of $500M RealSource Properties Multifamily Portfolio

Salt Lake City, UT -- Cottonwood Communities, Inc., a multifamily sector-focused real estate investment trust, and RealSource Properties, Inc., a private owner of an 11-property, 3,565-unit multifamily portfolio, today announced Cottonwood Communities' acquisition of RealSource Properties in a private stock-for-stock and unit-for-unit merger transaction valued at approximately $500 million.

The acquisition increases the gross asset value of Cottonwood Communities' portfolio to $2.6 billion, with 48 multifamily communities and 11,037 units across 13 states, expanding its footprint into Ohio, Colorado and Kentucky and strengthening its presence in Texas, North Carolina, and Georgia.

Additionally, as part of the broader transaction, Cottonwood Communities assumed third-party property management of five other properties.

"The completion of this acquisition signals a pivot to an offensive posture for Cottonwood Communities ushering in a new phase of growth. Building on this momentum and the expanded scale of our platform, Cottonwood is well poised to advance our strategic priorities heading into 2026," said Daniel Shaeffer, Chief Executive Officer of Cottonwood Communities. "We are grateful for the continued trust of our shareholders and remain committed to delivering durable value, systematic growth, and long-term performance."

"We are proud of what RealSource has achieved and are confident that Cottonwood Communities' will build on this foundation. While working together throughout this process, we have observed firsthand the depth of Cottonwood's multifamily operations and investment experience and are confident they are well positioned to create lasting value and provide tax-efficient benefits for our equity holders," said Nate Hanks, Chief Executive Officer of RealSource Properties.

In connection with this acquisition, Cottonwood's executive officers intend to make an aggregate investment of $3 million in Cottonwood Communities, divided equally between Class I common stock or common partnership units and Series A convertible preferred stock. Further, Cottonwood Communities' advisor has reduced its asset management fee by 16.7% from 1.5% of net asset value ("NAV") to 1.25% of NAV effective as of the closing of the transaction.

These steps affirm leadership's conviction and confidence in the Company's trajectory and its commitment to Cottonwood's growth and performance.