News

Cottonwood Lends to 8850 Sunset

Cottonwood Group ("Cottonwood"), a private equity real estate investment firm, is pleased to announce it closed a $62 million loan for 8850 Sunset Boulevard, located in West Hollywood on the iconic Sunset Strip. Cottonwood Chief Investment Officer Mark Green made the announcement. 8850 Sunset's impressive West Hollywood location–positioned on a full city block, where the legendary Viper Room is located, at the intersection of WeHo and Beverly Hills—makes for optimal development and enhancement opportunities. Currently a retail strip center, the property...

Cottonwood Buys Texas Apartments

Downtown-based private equity real estate investment firm Cottonwood Group has acquired a 636-unit multifamily portfolio located in San Antonio, Texas, with Dallas-based Texsun Holdings. The properties consist of San Mateo Apartments, located at 3787 Perrin Central Blvd., and Heights on Perrin Apartments, located at 2555 NE Interstate 410 Loop. The portfolio benefits from a desirable location in San Antonio’s northeast submarket with proximity to some of the city’s major employers, including Amazon.com Inc., Rackspace and Southwest Airlines. The portfolio is also...

Cottonwood Group Expands Senior Leadership

Cottonwood Group (Cottonwood), a private equity real estate investment firm, announced today that Mark Green has joined the firm as Managing Director and Chief Investment Officer (CIO), and Jeffrey Horowitz has been promoted to Managing Director and Chief Operating Officer (COO). Cottonwood founder and CEO Alexander Shing made the announcement. “Cottonwood is expanding its leadership team at a time when the firm is executing on equity and debt opportunities and providing our investors with exceptional absolute returns within our open- ended...

The Next Real Estate Boom

Five trends that are shaping the industry’s future, according to Scott Russell and Maxwell Rittner of Cottonwood Group. The last few years have been turbulent for the commercial real estate business. Some sectors have struggled, while others have proven to be surprisingly resilient. New pandemic-altered priorities and perspectives are shaping how office, industrial and mixed-use projects are developed, designed, leased and used. The big question, as usual, is what comes next? What dynamics are shaping the market today, what trends will have...

$104M Acquisition & Renovation Loan for Scottsdale Resort Hotel

Cottonwood Group (Cottonwood), a private equity real estate investment firm, announced today the firm closed on a $104 million acquisition and renovation loan for The Scottsdale Resort at McCormick Ranch, a destination hotel located at 7700 E. McCormick Parkway in Scottsdale, Arizona acquired by Florida-based commercial real estate investment and development firm Driftwood Capital (Driftwood). Cottonwood Vice President of Investment Maxwell Rittner made the announcement. “Our team was able to close the loan for Driftwood Capital in under 45 days despite...

What Do Investors Look For When Placing Money in a New CRE Fund?

Cottonwood Group recently launched an open-ended, multi-strategy real estate investment vehicle called the Cottonwood Founders Portfolio Fund. The Los Angeles-based firm, which also has offices in Boston and New York, named the fund after its strong base of anchor legacy investors. Cottonwood’s long-standing, loyal investors not only supported the new fund, they requested this investment vehicle. Moreover, they’ve already committed $200 million to the fund, which has an overall target of more than $750 million and is the first that Cottonwood has raised...

The Complex World of Hotel Financing

Hospitality is among a small handful of industries that have borne the brunt of the pandemic’s economic impact. From steep revenue losses to difficult staffing decisions, hotel operations look different now than they did last year. For many hotel owners and operators, the difficult daily work of modifying operations and keeping the lights on is just the tip of the economic iceberg. Many properties are facing daunting long-term structural financing challenges. And with successful vaccine rollouts and the promise of...

Cottonwood Management Makes Big Investments in Industrial Sector

Early in the pandemic, when construction lending by commercial banks slowed, Cottonwood Management seized the moment. The downtown-based private equity real estate investment firm used its connections to negotiate rights to either buy or work on industrial assets. “We’ve been interested (in industrial) for a while, and Covid provided us the opportunity to access the asset class,” said Tinchuck Ng, Cottonwood’s managing director and head of investments. The firm, which had previously focused on other asset types, has spent the past year expanding into...

What CRE Investors Can Expect From Debt, Equity Sources Right Now

The pandemic continues to devastate portions of the U.S. economy, but investor confidence is expected to return in 2021 with the rollout of COVID-19 vaccines and more stimulus funding. Signs of a returning investment market are already evident, according to industry sources. Investment sales activity increased in the second half of 2020, and investors continue to seek acquisition opportunities, as well as equity and debt sources to support their goals, according to John Chang, senior vice president and national director of...

Cottonwood Forms $200M US Funding Platform With Chinese Giant

Alexander Shing’s Cottonwood Group has formed a new $200 million investment platform with BCEG International Investment – US (BCEGI-US) to pursue real estate opportunities throughout the U.S. The partners are targeting ventures that require financing support, capital infusion and/or construction capabilities. Shing announced the move in a joint statement with Yan Xing, president of BCEGI-US, which is the investment arm of Beijing Construction Engineering Group. “Cottonwood and BCEGI-US have maintained a strong working relationship for many years, and we’ve established the level of...