Platform
We employ highly differentiated and opportunistic strategies within real estate, leveraging a flexible mandate to invest in both equity and credit across the liquidity spectrum. Our approach combines niche strategies with tactical asset allocation and other opportunistic investments to create portfolios designed to balance attractive returns with a given risk tolerance. By concentrating on identifiable inefficiencies, we aim to capture excess returns and deliver value to our investors.
How We Invest
Singular focus on generating alpha through proprietary sourcing, vigorous underwriting and structuring, and active management.
Identify
Our propriety sourcing network has been established over 13 years with our partners, many of whom we have executed complex transactions with trust and integrity. Given our ability to pivot throughout the capital stack, sponsors, borrowers, partners and intermediaries often consider Cottonwood as a first stop and a “one-stop shop” for their project financing need – debt or equity. Our transactional experiences and relations in almost all primary and secondary real estate markets in the U.S. provide a constant stream of opportunities throughout market-cycles to our 3 origination offices.
Unlock
Our advantage lies in our development and operating abilities – the ability to dissect and underwrite an asset throughout the real estate lifecycle. Our in-house experiences from entitlement and design, development and construction, to sales and leasing, gives us that requisite knowledge to underwrite, solve, and unlock alpha through creative and often complex structures. Our roles as sponsor/co-sponsor, sole or co-lead administrator and agent, along with our capital markets capabilities allow us to provide a complete solution to our partners while giving us the abilities to cherry-pick the optimal risk-reward for our investors and stakeholders.
Realize
We go beyond traditional asset management by thoughtfully crafting optimized realization strategies that aim to minimize risk and maximize value for our investors. These strategies encompass a wide range of approaches, including partial or structured sales, complete divestments, strata titling, ground leases, and fractional exits. We can also utilize refinancing, continuation vehicles, publicly listed entities, synthetic participation vehicles, and in-specie distributions to achieve the best possible outcomes.
Our Pillar Strategies
We provide innovative and customized capital solutions through our four investment pillars – Credit, Equity, Special Situations, and Platforms. From multifamily housing to life sciences, retail to data centers, we structure and deploy capital across the entire capital stack, in any geography, for virtually any property type.
Credit
| Lifecycle | Loan Types |
|---|---|
| Land Loans | Senior Mortgage |
| Construction Loans | Mezzanine or Subordinate |
| Bridge Loans | Loan Participations |
| Portfolio Level | |
| Fund NAV |
Equity
| Lifecycle | Equity Types |
|---|---|
| Acquisitions | Preferred Equity |
| Development | Co-GP Equity |
| Land Value-Add | Common Equity |
Special Situations
| Credit | Equity |
|---|---|
| Non-Performing Loan (NPL) Acquisition | REO Acquisition (Post-Foreclosure) |
| Debtor in Possession Financing | Development Rescue Equity |
| Bridge-to-Exit Rescue Lending | GP or Sponsor Recapitalization |
| CMBS Special Servicing Buyout | Bankruptcy Restructuring |
Platforms
| Corporate | Asset Specific |
|---|---|
| GP Stake | Data Center Development Platforms |
| Take-Private | Single-Family Rental (SFR) Platforms |
| Strategic Public Investments | Hospitality Platforms |
| Property Management Platforms | PropTech Platform Investments |
| Multifamily Platforms | |
| Student Housing Platforms | |
| Life Sciences Platforms | |
| Industrial/Warehouse Platforms |