Cottonwood Communities, Inc. operates a Delaware Statutory Trust program through a taxable REIT subsidiary for accredited investors seeking passive real estate ownership and Section 1031 exchange replacement property.
Cottonwood launched its first DST offering in 2025 with Cottonwood Riverfront DST, which owns 805 Riverfront. The DST program is closely tied to Cottonwood Communities' broader multifamily real estate platform.
Each Cottonwood DST is expected to be structured as a separate trust with its own property, offering documents, financing, distributions, transfer restrictions, and exit mechanics.
Cottonwood's DST structure also includes a distinctive fair market value purchase option that may allow Cottonwood Residential O.P., LP to acquire DST interests after a specified holding period in exchange for operating partnership units or cash, at its discretion.
Because Cottonwood DST interests are private securities and are not listed on a national securities exchange, investors generally cannot sell them through a conventional brokerage account at a continuously quoted market price.
Cottonwood Communities, Inc.
Delaware Statutory Trust / 1031 Exchange Real Estate Program
Multifamily Real Estate
Cottonwood Riverfront DST
Limited Private Secondary Market Liquidity
Property, Debt, Distributions, FMV Option, Transferability & Buyer Demand
Cottonwood Communities is a non-listed, perpetual-life net asset value REIT focused on multifamily apartment communities and multifamily real estate-related investments throughout the United States.
Its DST program was established to sell beneficial interests in separate Delaware statutory trusts holding real property to accredited investors through private placement offerings.
Under the program, a DST property may be sourced from a third party or from Cottonwood Communities' existing portfolio and then leased under a master lease structure.
The specific economics and marketability of each DST depend on the underlying property, financing, sponsor arrangements, distributions, holding period, and transfer restrictions.
Cottonwood Riverfront DST was formed in 2025 and holds 805 Riverfront.
Cottonwood transferred 805 Riverfront into the trust on June 27, 2025 and began syndicating DST interests during the third quarter of 2025.
$74.946 Million
$40.28 Million As Of October 1, 2026
64 Reported Investors
805 Riverfront
$42.6 Million / 5.08% Fixed Rate
Seven Years
The October 2026 Form D amendment reported a total offering amount of $74.946 million, approximately $40.28 million sold, and approximately $34.66 million remaining to be sold.
Cottonwood also disclosed that it refinanced the property's prior bridge loan when 805 Riverfront was transferred into the DST, reducing debt from $60.2 million to a $42.6 million mortgage loan bearing interest at 5.08% with a seven-year term.
These figures are provided as program research and should not be interpreted as an offer, recommendation, or representation that the investment remains available on the same terms.
Alternative Investment Liquidity evaluates certain Cottonwood DST interests for potential direct private purchase or other secondary-market liquidity.
There is no single standing purchase price applicable to all Cottonwood DST positions. Potential pricing depends on the specific DST, property performance, financing, distributions, transferability, remaining holding period, sponsor exit mechanics, and current buyer demand.
Potential Direct Private Purchase
Baron De Biltmore LLC
AIL Reviews Eligible Cottonwood DST Positions
Determined By Specific DST And Position Review
Property, Debt, Distributions, FMV Option & Transferability
Subject To Position And Documentation Review
Any potential purchase indication is separate from the investor's original investment amount, tax basis, sponsor-related value, account statement value, or projected future sale proceeds.
Any offer from AIL, an affiliated purchaser, or another potential buyer represents the amount that purchaser is willing to pay under the applicable terms and should not be interpreted as an independent appraisal or determination of fair value.
Cottonwood's DST program contains a distinctive sponsor-related exit feature through a fair market value option held by Cottonwood Residential O.P., LP.
Under Cottonwood's disclosed program structure, the operating partnership may have the right, but not the obligation, to acquire DST interests from investors in exchange for operating partnership units or cash, at its discretion.
Cottonwood states that the FMV option may become exercisable beginning on the two-year anniversary of the final closing of the applicable DST private placement.
If the option is exercised for operating partnership units, Cottonwood states that the exchange should be treated as a Section 721 transaction.
Investors considering a secondary-market sale should evaluate whether an early transfer could affect the opportunity to participate in a future sponsor-led FMV option or Section 721 transaction. The availability, timing, and economics of any such transaction are not guaranteed.
Potentially. A Cottonwood DST interest may be transferable before a sponsor-led exit, but the process depends on the governing documents and transfer procedures applicable to the specific trust.
Transfer requirements may include sponsor or trust-manager approval, purchaser eligibility requirements, assignment documentation, accredited-investor qualifications, lender restrictions, ownership limitations, or other conditions.
Positions held in an IRA, trust, estate, corporation, partnership, LLC, or other entity may require additional documentation related to ownership and authority to complete the transaction.
The fact that an interest is legally transferable does not mean that a ready purchaser or continuous secondary market exists.
Cottonwood's DST program is intended in part for accredited investors seeking real estate interests that may qualify as replacement property in a Section 1031 exchange.
The tax treatment of the original exchange does not create public-market liquidity. A later private sale or transfer may have tax consequences that differ materially from the original transaction.
Potential considerations may include deferred gain, depreciation recapture, debt allocation, future 1031 planning, and the potential impact of selling before a sponsor-led FMV option or Section 721 transaction.
Investors should consult qualified tax and legal professionals before completing a secondary-market transaction.
Alternative Investment Liquidity does not provide tax, legal, investment, accounting, or valuation advice.
Current and historical distributions can be important when evaluating a Cottonwood DST position.
Potential buyers may review property-level operating cash flow, occupancy, rental performance, reserves, debt service, financing costs, master lease terms, sponsor reporting, and the sustainability of future distributions.
Distribution history should be evaluated together with the broader economics and financing of the specific DST rather than viewed as a standalone measure of value.
Cottonwood DST interests do not trade on a national securities exchange and generally do not provide continuous investor redemption liquidity.
Potential liquidity alternatives may include continued ownership until a sponsor-led transaction, a future FMV option or Section 721 exchange where applicable, a private secondary-market sale, a direct private purchase, or another permitted transfer.
The availability and attractiveness of these alternatives may depend on the specific DST, property performance, debt, current distributions, transfer restrictions, remaining holding period, purchaser qualifications, and buyer demand.
There is no guarantee that a purchaser will be available or that an investor can sell at the original investment amount, account statement value, or projected future sponsor-led value.
Potentially. Certain Cottonwood DST positions may qualify for a private secondary-market transaction or direct purchase, subject to transfer requirements, documentation, purchaser eligibility, sponsor procedures, and available buyer demand.
A potential sale may require confirmation of the exact Cottonwood DST, current ownership amount, account registration, governing documents, distribution history, debt structure, and anticipated sponsor-led exit mechanics.
Investors should compare the potential benefit of obtaining liquidity today with the possibility of continuing to receive distributions and participating in a future sponsor-led FMV option, Section 721 transaction, property disposition, or other liquidity event.
Private secondary-market transactions may provide a potential source of liquidity for certain Cottonwood DST investors who do not want to wait for a future sponsor-led transaction.
The DST secondary market does not operate like a national securities exchange. There is generally no continuously quoted price, centralized order book, or guarantee that a buyer will be available for a specific Cottonwood DST.
Potential buyers may evaluate the specific property, occupancy, current income, debt, loan maturity, remaining holding period, sponsor communications, FMV option structure, transfer requirements, and broader market conditions.
Because a private purchaser may be acquiring an illiquid interest with uncertain future liquidity, secondary-market pricing may differ materially from the investor's original investment amount, tax basis, account statement value, or expected future proceeds.
Investors can learn more about how the DST secondary market works, including transfer restrictions, buyer qualifications, pricing, documentation, and timing.
Each Cottonwood DST is a separate investment with its own property, financing, distributions, transfer rules, master lease terms, and anticipated exit structure.
Occupancy, rental performance, resident demand, operating expenses, location, capital requirements, and local multifamily market conditions may influence buyer expectations.
Outstanding loan balances, leverage, interest rates, maturity dates, debt-service requirements, and lender restrictions can materially affect expected returns and secondary-market pricing.
The potential timing and economics of Cottonwood's fair market value option may be relevant to secondary-market buyers. Any future exercise of the option is discretionary and should not be assumed.
Current and historical distributions may influence purchaser expectations, but income should be evaluated together with property operations, financing, reserves, and future capital requirements.
A DST believed to be approaching a possible sponsor-led transaction may be evaluated differently from an investment expected to remain outstanding for several additional years.
Sponsor procedures, purchaser qualifications, lender requirements, ownership limitations, and required transfer documentation may affect whether and how an interest may be sold.
Private-market pricing can vary depending on current purchaser interest, position size, required return, execution risk, and broader real estate and capital-market conditions.
A recent investor or account statement is generally the best starting point when evaluating a Cottonwood DST position for potential liquidity.
Helpful documentation may also include:
Not every document is necessary to begin. In many cases, a recent statement identifying the specific Cottonwood DST and current ownership amount is sufficient for an initial Confidential Investment Review.
Not every Cottonwood DST interest will necessarily qualify for a private secondary-market transaction or direct purchase.
Potential marketability may depend on the specific trust, property performance, debt, distributions, remaining holding period, sponsor exit mechanics, transferability, documentation, position size, purchaser qualifications, and current buyer demand.
Cottonwood's FMV option and potential Section 721 structure make sponsor-related exit mechanics particularly important when evaluating an early secondary-market transaction.
A Confidential Investment Review can help identify whether a particular Cottonwood DST position may currently qualify for further evaluation and which factors may influence a potential transaction.
Alternative Investment Liquidity reviews Cottonwood DST positions for investors seeking information about potential liquidity, transferability, valuation considerations, current buyer interest, and possible direct purchase opportunities.
AIL's review focuses on the specific DST program and investor position rather than relying solely on the Cottonwood sponsor name or the investor's original purchase amount.
For eligible positions, AIL may be able to facilitate a direct private purchase through Baron De Biltmore LLC or evaluate another potential secondary-market liquidity pathway. Any potential purchase price or transaction remains subject to investment-specific review, documentation, transferability, purchaser requirements, and current market conditions.
Investors, trustees, estate representatives, attorneys, financial professionals, and other authorized representatives can request a Confidential Investment Review for a Cottonwood DST position.
Information on this page was developed using publicly available Cottonwood Communities materials and Securities and Exchange Commission filings relating to Cottonwood's DST program and Cottonwood Riverfront DST.
Cottonwood disclosed that its DST program permits beneficial interests in separate Delaware statutory trusts holding real property to be sold to accredited investors through private placements.
Cottonwood Riverfront DST is the first publicly identified DST in the program. Public filings identify 805 Riverfront as the underlying property and describe the financing, offering size, investor participation, and sponsor-related FMV option structure.
Program terms, property information, distributions, financing, transfer procedures, exit strategies, FMV option terms, and other investment details may change after the applicable reporting or offering date. Investors should review the current governing documents and sponsor communications applicable to their specific Cottonwood DST.
Secondary market interest depends on more than asset type. AIL evaluates each position based on investment structure, transferability, documentation, and current market conditions.
Ownership type, sponsor requirements, investment terms, and underlying asset characteristics all influence review.
Some positions may be subject to transfer restrictions, approval requirements, or limitations within governing documents.
Offering materials, account records, ownership documents, and sponsor information help determine whether review can proceed.
Potential liquidity depends on current buyer interest, asset category, pricing expectations, and transaction feasibility.
Every opportunity is reviewed individually. Our process is designed to provide clarity regarding transferability, marketability, and potential liquidity pathways before any transaction decisions are made.
Provide basic details regarding the investment position, ownership structure, and available documentation.
AIL evaluates the investment type, transfer restrictions, sponsor requirements, and available transfer pathways.
We determine whether a secondary market opportunity may exist based on current investor demand and transaction activity.
If a viable pathway exists, we discuss potential next steps, timing considerations, and transaction requirements.
Submit basic information for a confidential review. Opportunities are evaluated individually based on investment structure, available documentation, transferability, and potential market interest.
REQUEST CONFIDENTIAL REVIEW