Exhibit 15.1
PRIOR PERFORMANCE TABLES
The following prior performance tables provide information relating to the real estate investment programs sponsored by Cottonwood Residential, Inc., Cottonwood Residential O.P., LP and their affiliates, collectively referred to herein as the “prior real estate programs.” These programs were not prior programs of Cottonwood Multifamily REIT I, Inc. Cottonwood Residential, Inc. is a real estate investment trust that, through its affiliates and subsidiaries, provides real estate investment and management services. The prior programs consisted of tenant in common offerings which had investment objectives that targeted investors who were completing tax deferred exchanges under Section 1031 of the Internal Revenue Code of 1986, as amended and entities that were formed to accept the contribution of tenant in common interests in property in exchange for interests in such entity. Thus, while the prior programs acquired multifamily real estate, the investment objectives of the prior programs were not similar to those of Cottonwood Multifamily REIT I, Inc.
This information should be read together with the summary of information included in the “Prior Performance Summary” section of this prospectus.
INVESTORS SHOULD NOT CONSTRUE INCLUSION OF THE FOLLOWING TABLES AS IMPLYING, IN ANY MANNER, THAT WE WILL HAVE RESULTS COMPARABLE TO THOSE REFLECTED IN SUCH TABLES. DISTRIBUTABLE CASH FLOW, FEDERAL INCOME TAX DEDUCTIONS OR OTHER FACTORS COULD BE SUBSTANTIALLY DIFFERENT. INVESTORS SHOULD NOTE THAT, BY ACQUIRING OUR SHARES, THEY WILL NOT BE ACQUIRING ANY INTEREST IN ANY PRIOR PROGRAM.
Description of the Tables
All information contained in the Tables in this Exhibit 15.1 is as of December 31, 2015. The following tables are included herein:
Table III – Annual Operating Results of Prior Real Estate Programs
Table IV – Operating Results of Prior Real Estate Programs Which Have Completed Operations
Table III includes information regarding the last five prior programs offered by Cottonwood Residential O. P., LP and its affiliates. Table IV includes information regarding the last five completed prior programs offered by Cottonwood Residential O.P., LP and its affiliates.
We have not included in this Exhibit 15.1 Table I (Experience in Raising and Investing Funds), Table II (Compensation to Sponsor) or Table V (Sale or Disposition of Properties by Prior Real Estate Programs) because the information contained in these tables is not applicable to the prior programs.
TABLE III
ANNUAL OPERATING RESULTS OF PRIOR PROGRAMS
(UNAUDITED)
Table III sets forth the annual operating results of prior real estate programs during the five years ending December 31, 2015. All figures are as of December 31, 2015 (amounts in dollars and thousands). All of the offerings for the prior real estate programs described in this Table III have closed.
Brook Highland Place | ||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | ||||||||||||||||
Summary Balance Sheet Data at December 31, | ||||||||||||||||||||
Total assets (before depreciation) | — | 1,061 | 27,377 | 27,944 | 28,529 | |||||||||||||||
Total assets (after depreciation) | — | 1,042 | 26,816 | 26,440 | 25,987 | |||||||||||||||
Liabilities | — | (1,183 | ) | (16,626 | ) | (16,426 | ) | (16,030 | ) | |||||||||||
Summary Income Statement Data(1) | ||||||||||||||||||||
Gross revenues | — | 1,226 | 3,799 | 3,822 | 3,840 | |||||||||||||||
Operating expenses | — | (611 | ) | (1,841 | ) | (1,860 | ) | (2,105 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Operating income | — | 615 | 1,958 | 1,962 | 1,735 | |||||||||||||||
Interest expense | — | (163 | ) | (346 | ) | (580 | ) | (569 | ) | |||||||||||
Non-operating, including depreciation and amortization | — | (489 | ) | (1,564 | ) | (979 | ) | (1,084 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net income (loss) | — | (37 | ) | 48 | 403 | 82 | ||||||||||||||
Summary Cash Flows Data(1) | ||||||||||||||||||||
Cash provided by operating activities | — | 566 | 1,611 | 1,453 | 1,128 | |||||||||||||||
Cash provided by (used in) investing activities | — | 26 | (484 | ) | (661 | ) | (654 | ) | ||||||||||||
Cash (used in) financing activities | — | (123 | ) | (352 | ) | (314 | ) | (326 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase in cash | — | 468 | 775 | 477 | 147 | |||||||||||||||
Amount and Source of Distributions | ||||||||||||||||||||
Cash distributions paid to investors (2) | — | 390 | 787 | 580 | 139 |
(1) | Operating results and cash flow data represent 100% of the property results from Cottonwood Residential O.P., LP’s initial acquisition date forward. |
(2) | Cash distributions may exceed cash generated due to funds set aside for capital improvements. |
TABLE III
ANNUAL OPERATING RESULTS OF PRIOR PROGRAMS
(UNAUDITED)
Table III sets forth the annual operating results of prior real estate programs during the five years ending December 31, 2015. All figures are as of December 31, 2015 (amounts in dollars and thousands). All of the offerings for the prior real estate programs described in this Table III have closed.
Toscana at Valley Ridge | ||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | ||||||||||||||||
Summary Balance Sheet Data at December 31, | ||||||||||||||||||||
Total assets (before depreciation) | — | — | — | — | 31,114 | |||||||||||||||
Total assets (after depreciation) | — | — | — | — | 30,636 | |||||||||||||||
Liabilities | — | — | — | — | (19,911 | ) | ||||||||||||||
Summary Income Statement Data(1) | ||||||||||||||||||||
Gross revenues | — | — | — | — | 1,250 | |||||||||||||||
Operating expenses | — | — | — | — | (630 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Operating income | — | — | — | — | 620 | |||||||||||||||
Interest expense | — | — | — | — | (358 | ) | ||||||||||||||
Non-operating, including depreciation and amortization | — | — | — | — | (1,284 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net (loss) | — | — | — | — | (1,021 | ) | ||||||||||||||
Summary Cash Flows Data(1) | ||||||||||||||||||||
Cash provided by operating activities | — | — | — | — | 690 | |||||||||||||||
Cash (used in) investing activities | — | — | — | — | (13 | ) | ||||||||||||||
Cash (used in) financing activities | — | — | — | — | (43 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase in cash | — | — | — | — | 635 | |||||||||||||||
Amount and Source of Distributions | ||||||||||||||||||||
Cash distributions paid to investors (2) | — | — | — | — | — |
(1) | Operating results and cash flow data represent 100% of the property results from Cottonwood Residential O.P., LP’s initial acquisition date forward. |
(2) | Cash distributions may exceed cash generated due to funds set aside for capital improvements. |
TABLE III
ANNUAL OPERATING RESULTS OF PRIOR PROGRAMS
(UNAUDITED)
Table III sets forth the annual operating results of prior real estate programs during the five years ending December 31, 2015. All figures are as of December 31, 2015 (amounts in dollars and thousands). All of the offerings for the prior real estate programs described in this Table III have closed.
Scott Mountain | ||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | ||||||||||||||||
Summary Balance Sheet Data at December 31, | ||||||||||||||||||||
Total assets (before depreciation) | 24,315 | 24,514 | 24,909 | 25,363 | 40,239 | |||||||||||||||
Total assets (after depreciation) | 23,179 | 22,626 | 22,248 | 21,884 | 39,403 | |||||||||||||||
Liabilities | (15,983 | ) | (15,827 | ) | (15,949 | ) | (15,640 | ) | (23,837 | ) | ||||||||||
Summary Income Statement Data(1) | ||||||||||||||||||||
Gross revenues | 2,898 | 2,892 | 2,976 | 3,144 | 3,567 | |||||||||||||||
Operating expenses | (1,210 | ) | (1,227 | ) | (1,363 | ) | (1,433 | ) | (1,427 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Operating income | 1,689 | 1,666 | 1,612 | 1,711 | 2,140 | |||||||||||||||
Interest expense | (816 | ) | (807 | ) | (792 | ) | (791 | ) | (834 | ) | ||||||||||
Non-operating, including depreciation and amortization | (776 | ) | (799 | ) | (819 | ) | (850 | ) | (2,474 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net income (loss) | 97 | 60 | 1 | 70 | (1,168 | ) | ||||||||||||||
Summary Cash Flows Data(1) | ||||||||||||||||||||
Cash provided by operating activities | 889 | 898 | 850 | 865 | 1,564 | |||||||||||||||
Cash (used in) investing activities | (166 | ) | (131 | ) | (437 | ) | (354 | ) | (393 | ) | ||||||||||
Cash provided by (used in) financing activities | (223 | ) | (233 | ) | (247 | ) | (260 | ) | 7,364 | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase in cash | 499 | 535 | 165 | 250 | 8,535 | |||||||||||||||
Amount and Source of Distributions | ||||||||||||||||||||
Cash distributions paid to investors (2) | 401 | 455 | 502 | 125 | 6,692 |
(1) | Operating results and cash flow data represent 100% of the property results from Cottonwood Residential O.P., LP’s initial acquisition date forward. |
(2) | Cash distributions may exceed cash generated due to funds set aside for capital improvements. |
TABLE III
ANNUAL OPERATING RESULTS OF PRIOR PROGRAMS
(UNAUDITED)
Table III sets forth the annual operating results of prior real estate programs during the five years ending December 31, 2015. All figures are as of December 31, 2015 (amounts in dollars and thousands). All of the offerings for the prior real estate programs described in this Table III have closed.
Courtney Oaks | ||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | ||||||||||||||||
Summary Balance Sheet Data at December 31, | ||||||||||||||||||||
Total assets (before depreciation) | — | — | — | 1,125 | 38,157 | |||||||||||||||
Total assets (after depreciation) | — | — | — | N/A | 37,432 | |||||||||||||||
Liabilities | — | — | — | (238 | ) | (24,527 | ) | |||||||||||||
Summary Income Statement Data(1) | ||||||||||||||||||||
Gross revenues | — | — | — | 567 | 3,451 | |||||||||||||||
Operating expenses | �� | — | — | — | (205 | ) | (1,325 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Operating income | — | — | — | 362 | 2,126 | |||||||||||||||
Interest expense | — | — | — | (138 | ) | (538 | ) | |||||||||||||
Non-operating, including depreciation and amortization | — | — | — | (353 | ) | (2,812 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net (loss) | — | — | — | (129 | ) | (1,224 | ) | |||||||||||||
Summary Cash Flows Data(1) | ||||||||||||||||||||
Cash provided by operating activities | — | — | — | 418 | 1,604 | |||||||||||||||
Cash (used in) investing activities | — | — | — | (88 | ) | (408 | ) | |||||||||||||
Cash provided by (used in) financing activities | — | — | — | (57 | ) | 7,391 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase in cash | — | — | — | 272 | 8,587 | |||||||||||||||
Amount and Source of Distributions | ||||||||||||||||||||
Cash distributions paid to investors (2) | — | — | — | — | 7,617 |
(1) | Operating results and cash flow data represent 100% of the property results from Cottonwood Residential O.P., LP’s initial acquisition date forward. |
(2) | Cash distributions may exceed cash generated due to funds set aside for capital improvements. |
TABLE III
ANNUAL OPERATING RESULTS OF PRIOR PROGRAMS
(UNAUDITED)
Table III sets forth the annual operating results of prior real estate programs during the five years ending December 31, 2015. All figures are as of December 31, 2015 (amounts in dollars and thousands). All of the offerings for the prior real estate programs described in this Table III have closed.
Sanctuary at Highland Oaks | ||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | ||||||||||||||||
Summary Balance Sheet Data at December 31, | ||||||||||||||||||||
Total assets (before depreciation) | — | — | — | — | 52,703 | |||||||||||||||
Total assets (after depreciation) | — | — | — | — | 51,870 | |||||||||||||||
Liabilities | — | — | — | — | (34,284 | ) | ||||||||||||||
Summary Income Statement Data(1) | ||||||||||||||||||||
Gross revenues | — | — | — | — | 2,488 | |||||||||||||||
Operating expenses | — | — | — | — | (1,055 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Operating income | — | — | — | — | 1,433 | |||||||||||||||
Interest expense | — | — | — | — | (324 | ) | ||||||||||||||
Non-operating, including depreciation and amortization | — | — | — | — | (2,271 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net (loss) | — | — | — | — | (1,161 | ) | ||||||||||||||
Summary Cash Flows Data(1) | ||||||||||||||||||||
Cash provided by operating activities | — | — | — | — | 1,860 | |||||||||||||||
Cash (used in) investing activities | — | — | — | — | (206 | ) | ||||||||||||||
Cash provided by (used in) financing activities | — | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase in cash | — | — | — | — | 1,654 | |||||||||||||||
Amount and Source of Distributions | ||||||||||||||||||||
Cash distributions paid to investors(2) | — | — | — | — | 48 |
(1) | Operating results and cash flow data represent 100% of the property results from Cottonwood Residential O.P., LP’s initial acquisition date forward. |
(2) | Cash distributions may exceed cash generated due to funds set aside for capital improvements. |
TABLE III
ANNUAL OPERATING RESULTS OF PRIOR PROGRAMS
(UNAUDITED)
Table III sets forth the annual operating results of prior real estate programs during the five years ending December 31, 2015. All figures are as of December 31, 2015 (amounts in dollars and thousands). All of the offerings for the prior real estate programs described in this Table III have closed.
Summer Park | ||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | ||||||||||||||||
Summary Balance Sheet Data at December 31, | ||||||||||||||||||||
Total assets (before depreciation) | — | — | — | 40,592 | 41,683 | |||||||||||||||
Total assets (after depreciation) | — | — | — | 40,226 | 40,322 | |||||||||||||||
Liabilities | — | — | — | (21,274 | ) | (22,965 | ) | |||||||||||||
Summary Income Statement Data(1) | ||||||||||||||||||||
Gross revenues | — | — | — | 1,505 | 4,313 | |||||||||||||||
Operating expenses | — | — | — | (586 | ) | (1,677 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Operating income | — | — | — | 919 | 2,636 | |||||||||||||||
Interest expense | — | — | — | (403 | ) | (1,091 | ) | |||||||||||||
Non-operating, including depreciation and amortization | — | — | — | (438 | ) | (1,641 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net income (loss) | — | — | — | 78 | (97 | ) | ||||||||||||||
Summary Cash Flows Data(1) | ||||||||||||||||||||
Cash provided by operating activities | — | — | — | 418 | 1,565 | |||||||||||||||
Cash (used in) investing activities | — | — | — | (135 | ) | (193 | ) | |||||||||||||
Cash provided by (used in) financing activities | — | — | — | (164 | ) | 1,726 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase in cash | — | — | — | 119 | 3,098 | |||||||||||||||
Amount and Source of Distributions | ||||||||||||||||||||
Cash distributions paid to investors (2) | — | — | — | 403 | 1,972 |
(1) | Operating results and cash flow data represent 100% of the property results from Cottonwood Residential O.P., LP’s initial acquisition date forward. |
(2) | Cash distributions may exceed cash generated due to funds set aside for capital improvements. |
TABLE IV
OPERATING RESULTS OF COMPLETED PRIOR PROGRAMS
(UNAUDITED)
Table IV presents information regarding the operating results of the last five prior real estate programs that have completed operations (no longer hold properties) during the five years ended December 31, 2015. All amounts presented are as of December 31, 2015.
Blue Swan | Northwest Corners | Scott Mountain | Tramore Village | Valencia Park | ||||||||||||||||
Aggregate Dollar Amount Raised | $ | 8,818,000 | $ | 8,140,000 | $ | 10,020,000 | $ | 11,410,000 | $ | 12,530,000 | ||||||||||
Duration of Program (Months) | 85 | 114 | 116 | 114 | 108 | |||||||||||||||
Date of Program Closing | 10/10/2015 | 3/26/2015 | 6/5/2015 | 6/19/2015 | 3/24/2015 | |||||||||||||||
Total Compensation Paid to Sponsor(1) | $ | 907,843 | $ | 3,006,664 | $ | 2,170,770 | $ | 3,531,866 | $ | 1,985,768 | ||||||||||
Median Leverage | 51 | % | 58 | % | 61 | % | 64 | % | 70 | % | ||||||||||
Annualized Return on Investment(2) | 4.06 | % | 2.89 | % | 10.01 | % | -0.63 | % | -9.96 | % | ||||||||||
Start Date | 9/9/2008 | 9/22/2005 | 9/29/2005 | 12/1/2005 | 3/30/2006 | |||||||||||||||
End Date | 10/10/2015 | 3/26/2015 | 6/5/2015 | 6/19/2015 | 3/24/2015 | |||||||||||||||
Median Month | March-12 | June-10 | August-10 | September-10 | September-10 |
(1) | Includes acquisition fees, property and asset management fees, disposition fees, financing fees, and other ancillary services. A portion of these fees are used to reimburse costs incurred by the Sponsor. |
(2) | Annualized return on investment is the internal rate of return over the program period using the respective cash flows from invested capital, distributions received, and proceeds from sale. |