Cottonwood Communities 10-Q 12 May 23 2023 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2023	May 09, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	000-56165
Entity Registrant Name	Cottonwood Communities, Inc.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	61-1805524
Entity Address, Address Line One	1245 E. Brickyard Road
Entity Address, Address Line Two	Suite 250
Entity Address, City or Town	Salt Lake City
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84106
City Area Code	801
Local Phone Number	278-0700
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Central Index Key	0001692951
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false
Class T
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		5,256,095
Class D
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		177,262
Class I
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		4,359,238
Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		25,237,867

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Assets
Real estate assets, net	$ 1,600,869	$ 1,697,607
Investments in unconsolidated real estate entities	179,881	133,207
Cash and cash equivalents	87,174	63,173
Restricted cash	20,850	32,351
Other assets	28,154	29,299
Total assets	1,916,928	1,955,637
Liabilities
Mortgage notes and revolving credit facility, net	996,824	1,000,137
Construction loans, net	66,369	95,327
Preferred stock, net	150,141	121,390
Unsecured promissory notes, net	42,693	42,953
Performance participation allocation due to affiliate	0	20,320
Accounts payable, accrued expenses and other liabilities	66,697	65,611
Total liabilities	1,322,724	1,345,738
Commitments and contingencies (Note 12)
Stockholders' equity
Additional paid-in capital	423,964	427,997
Accumulated distributions	(44,279)	(38,049)
Accumulated deficit	(80,932)	(71,513)
Total stockholders' equity	299,104	318,789
Noncontrolling interests
Limited partners	262,839	258,679
Partially owned entities	32,261	32,431
Total noncontrolling interests	295,100	291,110
Total equity and noncontrolling interests	594,204	609,899
Total liabilities, equity and noncontrolling interests	1,916,928	1,955,637
Class T
Stockholders' equity
Common stock	51	48
Class D
Stockholders' equity
Common stock	2	1
Class I
Stockholders' equity
Common stock	41	39
Class A
Stockholders' equity
Common stock	$ 257	$ 266

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Common stock, shares outstanding (in shares)	35,099,799	35,345,708
Class T
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	275,000,000	275,000,000
Common stock, shares issued (in shares)	5,109,023	4,815,122
Common stock, shares outstanding (in shares)	5,109,023	4,815,122
Class D
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	275,000,000	275,000,000
Common stock, shares issued (in shares)	165,926	64,673
Common stock, shares outstanding (in shares)	165,926	64,673
Class I
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	275,000,000	275,000,000
Common stock, shares issued (in shares)	4,111,641	3,861,049
Common stock, shares outstanding (in shares)	4,111,641	3,861,049
Class A
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	125,000,000	125,000,000
Common stock, shares issued (in shares)	25,713,209	26,604,864
Common stock, shares outstanding (in shares)	25,713,209	26,604,864

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenues
Rental and other property revenues	$ 35,581	$ 26,820
Property management revenues	3,106	3,124
Other revenues	3	615
Total revenues	38,690	30,559
Operating expenses
Property operations expense	13,109	9,672
Property management expense	4,257	4,952
Asset management fee	4,786	3,792
Performance participation allocation	0	19,934
Depreciation and amortization	15,412	11,268
General and administrative expenses	3,299	3,223
Total operating expenses	40,863	52,841
Loss from operations	(2,173)	(22,282)
Equity in earnings of unconsolidated real estate entities	1,647	2,670
Interest income	403	16
Interest expense	(17,584)	(11,668)
Gain on sale of real estate assets	1,031	0
Promote from incentive allocation agreement	0	30,309
Other (expense) income	(1,418)	1,530
Income (loss) before income taxes	(18,094)	575
Income tax benefit (expense)	234	(7,463)
Net loss	(17,860)	(6,888)
Net loss attributable to noncontrolling interests:
Limited partners	8,397	3,828
Partially owned entities	44	55
Net loss attributable to common stockholders	$ (9,419)	$ (3,005)
Weighted-average common shares outstanding - basic (in shares)	35,603,420	24,654,085
Weighted-average common shares outstanding - diluted (in shares)	35,603,420	24,654,085
Net loss per common share - basic (in dollars per share)	$ (0.26)	$ (0.12)
Net loss per common share - diluted (in dollars per share)	$ (0.26)	$ (0.12)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Total Stockholders' Equity	Common Stock Common Stock Class T	Common Stock Common Stock Class D	Common Stock Common Stock Class I	Common Stock Common Stock Class A	Common Stock Common Stock Class TX	Additional Paid-In Capital	Accumulated Distributions	Accumulated Deficit	Noncontrolling interests Limited Partners	Noncontrolling interests Partially Owned Entities	Noncontrolling interests OP Units Limited Partners
Stockholders' equity, beginning balance at Dec. 31, 2021	$ 540,669	$ 179,134	$ 0	$ 0	$ 2	$ 234	$ 0	$ 252,035	$ (17,273)	$ (55,864)	$ 291,258	$ 70,277
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock	32,930	32,930	14		4			32,912
Offering costs	(2,958)	(2,958)						(2,958)
Distribution reinvestment	464	464						464
Common stock/OP Units repurchased	(3,394)	(3,108)				(2)		(3,106)			(286)
Contributions from noncontrolling interests	662											662
Share-based compensation	865	0									865
Distributions to investors		(4,314)							(4,314)
Distributions to investors	(13,847)										(5,460)	(4,073)
Net loss	(6,888)	(3,005)								(3,005)	(3,828)	(55)
Stockholders' equity, ending balance at Mar. 31, 2022	548,503	199,143	14	0	6	232	0	279,347	(21,587)	(58,869)	282,549	66,811
Stockholders' equity, beginning balance at Dec. 31, 2022	609,899	318,789	48	1	39	266	0	427,997	(38,049)	(71,513)	258,679	32,431
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock	13,407	13,407	3	1	2			13,401
Offering costs	(1,188)	(1,188)						(1,188)
Distribution reinvestment	696	696						696
Common stock/OP Units repurchased	(19,626)	(18,977)			(1)	(9)		(18,967)			(649)
Exchanges and transfers	0	1,971			1			1,970					$ (1,971)
OP Units issued for real estate interests	19,829												$ 19,829
Share-based compensation	1,160	55						55			1,105
Distributions to investors		(6,230)							(6,230)
Distributions to investors	(12,113)										(5,757)	(126)
Net loss	(17,860)	(9,419)								(9,419)	(8,397)	(44)
Stockholders' equity, ending balance at Mar. 31, 2023	$ 594,204	$ 299,104	$ 51	$ 2	$ 41	$ 257	$ 0	$ 423,964	$ (44,279)	$ (80,932)	$ 262,839	$ 32,261

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net loss	$ (17,860)	$ (6,888)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	15,412	11,268
Gain on sale of real estate assets	(1,031)	0
Share-based compensation	1,160	865
Other operating	1,791	1,863
Equity in earnings of unconsolidated real estate entities	(1,647)	(2,670)
Distributions from unconsolidated real estate entities - return on capital	1,188	2,235
Changes in operating assets and liabilities:
Other assets	(1,092)	(1,170)
Performance participation allocation	0	19,934
Performance participation allocation payment	(20,320)	(51,761)
Accounts payable, accrued expenses and other liabilities	1,889	11,518
Net cash used in operating activities	(20,510)	(14,806)
Cash flows from investing activities:
Capital expenditures and development activities	(10,230)	(18,488)
Investments in unconsolidated real estate entities	(2,676)	(197)
Distributions from unconsolidated real estate entities - return of capital	18,106	38,769
Proceeds from sale of real estate assets, net	4,656	0
Net cash provided by investing activities	9,856	20,084
Cash flows from financing activities:
Principal payments on mortgage notes	(244)	(404)
Borrowings from revolving credit facility	31,500	52,800
Repayments on revolving credit facility	(50,000)	(72,800)
Borrowings under mortgage notes and term loans	265,513	369,500
Repayments of mortgage notes and term loans	(199,758)	(218,693)
Deferred financing costs on mortgage notes and term loans	(3,221)	(4,036)
Borrowings from construction loans	8,042	9,178
Repayments of construction loans	(37,000)	(59,660)
Proceeds from issuance of preferred stock	31,315	14,162
Redemption of preferred stock	(943)	(2,738)
Offering costs paid on issuance of preferred stock	(3,029)	(1,693)
Repurchase of unsecured promissory notes	(250)	(96)
Proceeds from issuance of common stock	14,103	33,395
Repurchase of common stock/OP Units	(19,626)	(3,394)
Offering costs paid on issuance of common stock	(1,188)	(2,959)
Contributions from noncontrolling interests	0	662
Distributions to common stockholders	(6,246)	(4,174)
Distributions to noncontrolling interests - limited partners	(5,688)	(5,460)
Distributions to noncontrolling interests - partially owned entities	(126)	(4,073)
Net cash provided by financing activities	23,154	99,517
Net increase in cash and cash equivalents and restricted cash	12,500	104,795
Cash and cash equivalents and restricted cash, beginning of period	95,524	45,390
Cash and cash equivalents and restricted cash, end of period	108,024	150,185
Reconciliation of cash and cash equivalents and restricted cash to the condensed consolidated balance sheets:
Cash and cash equivalents	87,174	121,890
Restricted cash	20,850	28,295
Total cash and cash equivalents and restricted cash	108,024	150,185
Supplemental disclosure of non-cash investing and financing activities:
Value of OP Units issued for additional investment in unconsolidated real estate entity	$ 19,829	$ 0

Organization and Business

Organization and Business	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business	Organization and Business Cottonwood Communities, Inc. (the “Company,” “CCI,” “we,” “us,” or “our”) invests in a diverse portfolio of multifamily apartment communities and multifamily real estate-related assets throughout the United States. We are externally managed by our advisor, CC Advisors III, LLC (“CC Advisors III”), a wholly-owned subsidiary of our sponsor, Cottonwood Communities Advisors, LLC (“CCA”). We were incorporated in Maryland in 2016. We own all of our assets through our operating partnership, Cottonwood Residential O.P., LP (“CROP”), and its subsidiaries. We are the sole member of the sole general partner of CROP and own general partner interests in CROP alongside third party limited partners. We are a non-traded, perpetual-life, net asset value (“NAV”) real estate investment trust (“REIT”). We generally will not be subject to U.S. federal income taxes on our taxable income to the extent we annually distribute all of our net taxable income to stockholders and maintain our qualification as a REIT. From August 13, 2018 to December 22, 2020 we conducted an initial public offering of our common stock (the “Initial Offering”), for which we raised gross proceeds of $122.0 million. The Initial Offering ended in December 2020. In November 2021, we registered with the SEC an offering of up to $1.0 billion of shares of common stock (the “Follow-on Offering”), consisting of up to $900.0 million in shares of common stock offered in a primary offering (the “Primary Offering”) and $100.0 million in shares under our distribution reinvestment plan (the “DRP Offering”). As of March 31, 2023, we have raised gross proceeds of $187.6 million from the Follow-on Offering, including $3.2 million proceeds from the DRP Offering. In November 2019, we commenced a private placement offering exempt from registration under the Securities Act pursuant to which we offered a maximum of $128.0 million in shares of Series 2019 Preferred Stock to accredited investors at a purchase price of $10.00 per share (the “2019 Private Offering”). The 2019 Private Offering was fully subscribed in March 2022, having received gross proceeds of $127.0 million. In December 2022, we commenced a second private placement offering exempt from registration under the Securities Act pursuant to which we are offering a maximum of $100,000,000 in shares of our Series 2023 Preferred Stock to accredited investors at a purchase price of $10.00 per share (the "2023 Private Offering" and together with the 2019 Private Offering, the “Private Offerings”). As of March 31, 2023, we have raised gross proceeds of $31.3 million from the 2023 Private Offering. We own and operate a diverse portfolio of investments in multifamily apartment communities located in targeted markets throughout the United States. As of March 31, 2023, our portfolio consists of ownership interests or structured investment interests in 34 multifamily apartment communities with a total of 9,820 units, including 1,293 units in four multifamily apartment communities in which we have a structured investment interest and another 504 units in two multifamily apartment communities under construction. In addition, we have an ownership interest in four land sites we plan to develop. Cottonwood Multifamily Opportunity Fund, Inc. Merger On July 8, 2022, we entered into an agreement and plan of merger with Cottonwood Multifamily Opportunity Fund, Inc. (“CMOF”) and its operating partnership (the “CMOF OP”) to merge CMOF with and into our wholly owned subsidiary and the CMOF OP with and into CROP through the exchange of stock-for-stock and units-for-units (the “CMOF Merger”). The CMOF Merger closed in September 2022. CMOF stockholders received 0.8669 shares of our Class A common stock in exchange for each share of their CMOF common stock. We issued 4,335,367 shares of Class A common stock in connection with the CMOF Merger, at an aggregate value of $89.7 million on the close date. In connection with the merger of the CMOF OP with and into CROP, the CMOF OP partnership units outstanding held by third parties were converted into CROP common units at the same ratio as the common stock. CROP was a joint venture partner with CMOF in all three of CMOF’s investments: Park Avenue (a development project), Cottonwood Broadway (a development project) and Block C (a joint venture owning land held for development in two projects called Westerly and Millcreek North). Following the CMOF Merger, we acquired CMOF’s interest in these joint ventures, increasing our percentage ownership interest in the joint ventures as follows: Park Avenue, 100.0%, Cottonwood Broadway, 100.0% and Block C, 79.0%. The remaining interests in the Block C joint venture are held either directly or indirectly by certain officers or directors, as well as certain employees of CROP and our advisor or its affiliates as discussed in Note 10 . The three development projects we acquired additional interests in with the CMOF Merger were already consolidated by us.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The condensed consolidated financial statements, including the condensed notes thereto, are unaudited and exclude some of the disclosures required in audited financial statements. The condensed consolidated balance sheet as of December 31, 2022 has been derived from the Company’s audited financial statements as of that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments and eliminations, consisting only of normal recurring adjustments necessary for a fair presentation in conformity with GAAP. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for the period ending December 31, 2022 filed with the SEC. As our comprehensive income is equivalent to net income, our accompanying condensed consolidated financial statements do not include a Statement of Other Comprehensive Income. The accompanying condensed consolidated financial statements include the accounts of the Company and its subsidiaries for which we have a controlling interest. All intercompany balances and transactions have been eliminated in consolidation. Certain amounts in the prior year condensed consolidated financial statements and notes to the condensed consolidated financial statements have been reclassified to conform to the current year presentation. Such reclassifications did not impact previously reported net loss or accumulated deficit or change net cash provided by or used in operating, investing or financing activities. Organization and Offering Costs Organization and offering costs in the Follow-on Offering are paid by purchasers of the shares through an adjustment to the purchase price of the share or their distribution (depending on the class of share purchased) or by us. They are recorded as an offset to equity. As of March 31, 2023, $17.3 million in organization and offering costs had been incurred in connection with the Follow-on Offering. Organization and offering costs in the 2019 Private Offering and 2023 Private Offering were and are paid by us. Offering costs are deferred and amortized up to the redemption date through interest expense. We incurred $13.2 million of organization and offering costs related to the 2019 Private Offering, which was fully subscribed and terminated in March 2022. We incurred $3.2 million of organization and offering costs related to the 2023 Private Offering as of March 31, 2023. Recent Accounting Pronouncements On January 1, 2023, we adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which amended the accounting for credit losses for certain financial instruments. The standard replaced the incurred loss impairment methodology with a methodology that requires consideration of a broader range of reasonable and supportable information to determine and record credit loss estimates. The adoption has not had a material impact on our condensed consolidated financial statements through March 31, 2023.

Real Estate Assets, Net

Real Estate Assets, Net	3 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Real Estate Assets, Net	Real Estate Assets, Net The following table summarizes the carrying amounts of our consolidated real estate assets (in thousands): March 31, 2023 December 31, 2022 Land $ 255,633 $ 267,876 Buildings and improvements 1,270,267 1,348,019 Furniture, fixtures and equipment 52,436 54,067 Intangible assets 38,421 40,692 Construction in progress (1) 113,761 106,223 1,730,518 1,816,877 Less: Accumulated depreciation and amortization (129,649) (119,270) Real estate assets, net $ 1,600,869 $ 1,697,607 (1) Includes construction in progress for our development projects and capitalized costs for improvements not yet placed in service at our stabilized properties. Cottonwood Lighthouse Point Transaction On February 14, 2023, we sold tenant-in-common interests in Cottonwood Lighthouse Point to certain unaffiliated third parties for $13.6 million, reducing our ownership from 100% to 86.8%. As a result of this transaction, Cottonwood Lighthouse Point was deconsolidated on February 14, 2023 and our remaining ownership in Lighthouse Point is recorded as an investment in unconsolidated real estate. Refer to Note 4 . We recorded a gain on sale of $1.0 million related to this transaction. Asset Acquisitions There were no asset acquisitions during the three months ended March 31, 2023. The following table summarizes the purchase price allocation of the real estate assets acquired or consolidated during the year ended December 31, 2022 (in thousands): Allocated Amounts Property Location Date Consolidated Building Land Land Improvements Personal Property Lease Intangibles Debt Mark to Market Total Cottonwood Lighthouse Point Pompano Beach, FL 6/22/22 $ 76,322 $ 13,647 $ 1,843 $ 2,011 $ 1,783 $ — $ 95,606 Cottonwood Ridgeview Plano, TX 9/19/22 54,337 9,275 2,548 835 1,603 1,504 70,102 Cottonwood Clermont Clermont, FL 9/21/22 67,400 5,705 5,744 1,817 1,792 3,428 85,886 $ 198,059 $ 28,627 $ 10,135 $ 4,663 $ 5,178 $ 4,932 $ 251,594 The acquisition of Cottonwood Lighthouse Point in June 2022 was funded with debt of $48.0 million and available cash. See also the “Cottonwood Lighthouse Point Transaction” discussion above and Note 4 for further information. Cottonwood Ridgeview was consolidated when we issued 141,543 operating partnership units in CROP (“OP Units) to acquire the remaining 9.5% tenant-in-common interests in the property in September 2022. The value of the OP Units was $2.9 million on the close date based on the net asset value of OP Units as of August 31, 2022. Cottonwood Ridgeview was previously accounted for as an equity method investment. The acquisition of Cottonwood Clermont in September 2022 was funded through an assumed loan of $35.5 million and available cash, including Section 1031 exchange proceeds from the sale of 3800 Main. In asset acquisitions, assets and liabilities are recorded at relative fair value. The weighted-average amortization period for the intangible lease assets acquired in connection with these acquisitions is 0.5 years. Galleria Land Purchase On September 20, 2022, we acquired 26 acres of land for future development in Murray, Utah for $28.5 million. Block C On June 28, 2022, Block C, an early-stage development joint venture with CMOF, was recapitalized. Block C owns land for the development of two projects called Westerly and Millcreek North. Entities affiliated with us and our advisor contributed capital to the joint venture and were admitted as members. We contributed additional funds to obtain a controlling interest and consolidated the joint venture, which had previously been recorded as an equity method investment. On September 27, 2022, we acquired CMOF’s interest in Block C as a result of the CMOF Merger. The joint venture consists mainly of cash, land held for development, initial capitalized costs, and payables. Refer to Note 10 for further information on the Block C recapitalization. CMOF Merger The acquisition of an additional ownership interest of a consolidated entity is accounted for as an equity transaction. The three development projects we acquired additional interests in with the CMOF Merger in 2022 were already consolidated by us. Accordingly, CMOF’s noncontrolling interest in the three investments was reduced by its carrying amount and the difference between the carrying amount and the consideration paid was recorded as an adjustment to our equity through additional paid-in capital as follows (in thousands, except share and per share data): 2022 Consideration CMOF Merger Common stock issued and outstanding 5,001,000 Exchange ratio 0.8669 CCI common stock issued as consideration 4,335,367 Per share value of CCI Common Stock $ 20.7007 Fair value of CCI Common Stock issued $ 89,745 Fair value of OP Units issued 8,273 Settlement of CMOF related party notes and interest 1,327 Settlement of net other liabilities of CMOF 142 Total consideration $ 99,487 2022 Change in equity CMOF Merger Carrying amount of noncontrolling interest $ 49,178 Total consideration 99,487 Additional paid in capital adjustment $ (50,309) Fair value of CCI Common Stock issued $ 89,745 Additional paid in capital adjustment (50,309) Total change in equity $ 39,436

Investments in Unconsolidated R

Investments in Unconsolidated Real Estate Entities	3 Months Ended
	Mar. 31, 2023
Real Estate [Abstract]
Investments in Unconsolidated Real Estate Entities	Investments in Unconsolidated Real Estate Entities Our investments in unconsolidated real estate entities consist of ownership interests in stabilized properties and preferred equity investments as follows as of March 31, 2023 and December 31, 2022 (in thousands): Balance at Property / Development Location % Owned March 31, 2023 December 31, 2022 Stabilized Assets Alpha Mill (1) (2) Charlotte, NC 73.7% (2) $ 30,170 $ 10,470 Cottonwood Bayview (1) St. Petersburg, FL 71.0% 13,188 30,792 Cottonwood Lighthouse Point (1) (3) Pompano Beach, FL 86.8% (3) 41,498 — Fox Point (1) Salt Lake City, UT 52.8% 14,459 14,794 Toscana at Valley Ridge (1) Lewisville, TX 58.6% 7,734 9,382 Melrose Phase II (1) Nashville, TN 79.8% 5,936 6,185 Preferred Equity Investments Lector85 Ybor City, FL 10,330 10,006 Astoria West (formerly Vernon) Queens, NY 21,233 20,567 801 Riverfront West Sacramento, CA 21,080 20,259 417 Callowhill Philadelphia, PA 13,706 9,949 Other 547 803 Total $ 179,881 $ 133,207 (1) We account for our tenant-in-common interests in these properties as equity method investments. (2) On March 31, 2023, we issued 1,063,293 CROP Units for an additional 45.4% tenant-in-common interests in Alpha Mill, increasing our ownership to 73.7%. The value of the CROP Units on the close date was $19.8 million based on the net asset value of CROP Units as of February 28, 2023. All of the tenant-in-common interests were purchased at the same price. One of the sellers was a related party. (3) On February 14, 2023, we sold 13.2% of our ownership interest in Cottonwood Lighthouse Point for $13.6 million and we recorded a gain on sale of $1.0 million related to the transaction, which reduced our remaining ownership in Cottonwood Lighthouse Point to 86.8%. As a result of this transaction, Cottonwood Lighthouse Point was deconsolidated and is recorded as an investment in unconsolidated real estate from February 14, 2023. Equity in earnings (losses) for our stabilized assets for the three months ended March 31, 2023 and 2022 were $(1.2) million and $1.0 million, respectively. During February 2023, we received $16.9 million and $1.2 million in distributions as a return of capital from debt refinances at Cottonwood Bayview and Toscana at Valley Ridge, respectively. Our preferred equity investments, which are in development projects, have liquidation rights and priorities that are different from ownership percentages. As such, equity in earnings is determined using the hypothetical liquidation book value method. Equity in earnings for our preferred equity investments for the three months ended March 31, 2023 and 2022 were $2.9 million and $1.7 million, respectively. During the three months ended March 31, 2023, we funded $2.6 million toward the 417 Callowhill preferred equity investment. As of March 31, 2023, we have funded $11.4 million in total towards the 417 Callowhill preferred equity investment and had a remaining commitment of $22.0 million. As of March 31, 2023, we had fully funded our commitments on the Lector85, Astoria West and 801 Riverfront preferred equity investments.

Debt

Debt	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Debt	Debt Mortgage Notes and Revolving Credit Facility The following table is a summary of the mortgage notes and revolving credit facility secured by our properties as of March 31, 2023 and December 31, 2022 ($ in thousands): Principal Balance Outstanding Indebtedness Weighted-Average Interest Rate Weighted-Average Remaining Term (1) March 31, 2023 December 31, 2022 Fixed rate loans Fixed rate mortgages 4.40% 5.5 Years $ 829,242 $ 528,308 Total fixed rate loans 829,242 528,308 Variable rate loans (2) Floating rate mortgages 5.43% (3) 7.7 Years 142,744 426,130 Variable rate revolving credit facility (4) 6.35% 2.0 Years 35,500 54,000 Total variable rate loans 178,244 480,130 Total secured loans 1,007,486 1,008,438 Unamortized debt issuance costs (7,119) (4,878) Premium on assumed debt, net (3,543) (3,423) Mortgage notes and revolving credit facility, net $ 996,824 $ 1,000,137 (1) For loans where we have the ability to exercise extension options at our own discretion, the maximum maturity date has been assumed. (2) The interest rate of our variable rate loans is primarily based on one-month LIBOR or one-month SOFR. (3) Includes the impact of interest rate caps in effect on March 31, 2023. (4) We may obtain advances secured against Cottonwood One Upland and Parc Westborough up to $125.0 million on our variable rate revolving credit facility, as long as certain loan-to-value ratios and other requirements are maintained. At March 31, 2023, the amount on our variable rate revolving credit facility was capped at $106.3 million primarily due to the interest rate environment. We are in compliance with all covenants associated with our mortgage notes and revolving credit facility as of March 31, 2023. Construction Loans Information on our construction loans are as follows ($ in thousands): Development Interest Rate Final Expiration Date Loan Amount Amount Drawn at March 31, 2023 Amount Drawn at December 31, 2022 Park Avenue (1) (1) (1) $ — $ 37,000 Cottonwood Broadway One-Month USD Libor + 1.9% May 15, 2024 44,625 40,957 39,728 Cottonwood Highland One-Month USD SOFR + 2.55% May 1, 2029 44,250 25,412 18,599 $ 88,875 $ 66,369 $ 95,327 (1) The Park Avenue construction loan was refinanced in March 2023 with a $43.5 million fixed rate mortgage which matures in 2028 and is included in mortgage notes above. Unsecured Promissory Notes, Net CROP issued notes to foreign investors outside of the United States. These notes are unsecured and subordinate to all of CROP's debt. Each note has extension options during which the interest rate will increase 0.25% each year. Information on our unsecured promissory notes are as follows ($ in thousands): Offering Size Interest Rate Maturity Date Maximum Extension Date March 31, 2023 December 31, 2022 2017 6% Notes (1) $ 35,000 6.00% December 31, 2023 December 31, 2024 $ 20,618 $ 20,718 2019 6% Notes 25,000 6.00% December 31, 2023 December 31, 2025 22,075 22,235 $ 60,000 $ 42,693 $ 42,953 (1) We exercised the option to extend the maturity date on our 2017 6% Notes for one additional year to December 31, 2023, which increased the interest rate to 6.25% for the period from January 1, 2023 to December 31, 2023. The aggregate maturities, including amortizing principal payments on our debt for years subsequent to March 31, 2023 are as follows (in thousands): Year Mortgage Notes and Revolving Credit Facility Construction Loans Unsecured Total 2023 (1) $ 727 $ 40,957 $ 42,693 $ 84,377 2024 (2) 36,508 — — 36,508 2025 2,013 — — 2,013 2026 127,522 — — 127,522 2027 367,417 — — 367,417 Thereafter 473,299 25,412 — 498,711 $ 1,007,486 $ 66,369 $ 42,693 $ 1,116,548 (1) Of the amounts maturing in 2023, $41.0 million relates to the construction loan for Cottonwood Broadway, which can be extended to May 15, 2024, $20.6 million relates to our 2017 6% Unsecured Promissory Notes which can be extended to December 31, 2024, and $22.1 million relates to our 2019 6% Unsecured Promissory Notes which can be extended for two one (2) Of the amounts maturing in 2024, $35.5 million relates to our variable rate revolving credit facility, which can be extended to March 19, 2025, subject to the satisfaction of certain conditions.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments We estimate the fair value of our financial instruments using available market information and valuation methodologies we believe to be appropriate. As of March 31, 2023 and December 31, 2022, the fair values of cash and cash equivalents, restricted cash, other assets, related party payables, and accounts payable, accrued expenses and other liabilities approximate their carrying values due to the short-term nature of these instruments. Fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. Fair value measurements are categorized into one of three levels of the fair value hierarchy based on the lowest level of significant input used. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Considerable judgment and a high degree of subjectivity are involved in developing these estimates. These estimates may differ from the actual amounts that we could realize upon settlement. The fair value hierarchy is as follows: Level 1 - Quoted (unadjusted) prices in active markets for identical assets or liabilities. Level 2 - Other observable inputs, either directly or indirectly, other than quoted prices included in Level 1, including: • Quoted prices for similar assets/liabilities in active markets; • Quoted prices for identical or similar assets/liabilities in non-active markets (e.g., few transactions, limited information, non-current prices, high variability over time); • Inputs other than quoted prices that are observable for the asset/liability (e.g., interest rates, yield curves, volatility, default rates); and • Inputs that are derived principally from or corroborated by other observable market data. Level 3 - Unobservable inputs that cannot be corroborated by observable market data. The table below includes the carrying value and fair value for our financial instruments for which it is practicable to estimate fair value (in thousands): March 31, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value Fixed rate mortgages $ 829,242 $ 810,339 $ 528,308 $ 509,134 Floating rate mortgages $ 142,744 $ 140,788 $ 426,130 $ 421,189 Variable rate revolving credit facility $ 35,500 $ 35,500 $ 54,000 $ 54,000 Construction loans $ 66,369 $ 66,369 $ 95,327 $ 95,327 Series 2019 Preferred Stock $ 126,102 $ 126,102 $ 127,065 $ 127,065 Series 2023 Preferred Stock $ 31,318 $ 31,318 $ — $ — Unsecured promissory notes $ 42,693 $ 42,693 $ 42,953 $ 42,953 Our fixed and floating rate mortgages, variable rate revolving credit facility, construction loans, preferred stock and unsecured promissory notes are categorized as Level 3 in the fair value hierarchy.

Preferred Stock

Preferred Stock	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Preferred Stock	Preferred Stock We have two classes of preferred stock outstanding as of March 31, 2023, Series 2019 and Series 2023, that are accounted for as liabilities as they are mandatorily redeemable. Information on our preferred stock as of March 31, 2023 and December 31, 2022 is as follows: Shares Outstanding at Dividend Rate Extension Dividend Rate Redemption Date Maximum Extension Date March 31, 2023 December 31, 2022 Series 2019 Preferred Stock 5.5% 6.0% December 31, 2023 December 31, 2025 12,610,166 12,706,485 Series 2023 Preferred Stock 6.0% 6.5% (1) June 30, 2027 June 30, 2029 3,131,836 — (1) Represents the fully extended dividend rate. During the first-year extension, the dividend rate is 6.25%. The 2023 Private Offering commenced in December 2022, with our first shares issued in early 2023. During the three months ended March 31, 2023, we issued $31.3 million of Series 2023 Preferred Stock. We issued the remaining $15.5 million of Series 2019 Preferred Stock in the first quarter of 2022, whereupon the Series 2019 Offering was fully subscribed and terminated in March 2022. During the three months ended March 31, 2023, we incurred $0.2 million in dividends on our Series 2023 Preferred Stock. During both the three months ended March 31, 2023 and 2022, we incurred $1.7 million in dividends on our Series 2019 Preferred Stock. During the three months ended March 31, 2022, we incurred $2.4 million in dividends on our Series 2016 Preferred Stock and we incurred an insignificant amount in dividends on our Series 2017 Preferred Stock. No shares of our Series 2023 Preferred Stock were repurchased during the three months ended March 31, 2023. During the three months ended March 31, 2023, we repurchased 96,319 shares of Series 2019 Preferred Stock for $0.9 million. No shares of our Series 2019 Preferred Stock were repurchased during the three months ended March 31, 2022. We fully redeemed our Series 2017 Preferred Stock in January 2022 for $2.6 million. During the three months ended March 31, 2022, we repurchased 15,750 shares of Series 2016 Preferred Stock for $0.2 million, and fully redeemed our Series 2016 Preferred Stock in April 2022 for $139.8 million.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity Common Stock The following table details the movement in the Company's outstanding shares for each class of common stock: Three Months Ended March 31, 2023 Class T Class D Class I Class A Total December 31, 2022 4,815,122 64,673 3,861,049 26,604,864 35,345,708 Issuance of common stock 312,220 101,083 260,180 — 673,483 Distribution reinvestment 7,428 171 6,210 20,883 34,692 Exchanges and transfers (1) (725) — 99,768 — 99,043 Repurchases of common stock (25,023) — (115,566) (912,538) (1,053,127) March 31, 2023 5,109,023 165,926 4,111,641 25,713,209 35,099,799 (1) Exchanges represent the number of shares OP Unit holders have exchanged for Class I shares during the period. Transfers represent Class T shares that were converted to Class I shares during the period. Common Stock Distributions Distributions on our common stock are determined by the board of directors based on our financial condition and other relevant factors. Common stockholders may choose to receive cash distributions or purchase additional shares through our distribution reinvestment plan. For the three months ended March 31, 2023, we paid aggregate distributions of $6.9 million, including $6.2 million distributions paid in cash and $0.7 million of distributions reinvested through our distribution reinvestment plan. We declared the following monthly distributions for each share of our common stock as shown in the table below: Shareholder Record Date Monthly Rate Annually January 31, 2023 $ 0.06083333 $ 0.73 February 28, 2023 $ 0.06083333 $ 0.73 March 31, 2023 $ 0.06083333 $ 0.73 Repurchases During the three months ended March 31, 2023, we repurchased 1,053,127 shares of common stock pursuant to our share repurchase program for $19.0 million, at an average repurchase price of $18.02. We had no unfulfilled repurchase requests during the three months ended March 31, 2023.

Promote from Incentive Allocati

Promote from Incentive Allocation Agreement	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Promote from Incentive Allocation Agreement	Promote from Incentive Allocation AgreementIn 2018, CROP sold a portfolio of 12 properties to an unrelated real estate firm, retaining management of the portfolio on behalf of the real estate firm. Under the sales arrangement, CROP entered into an incentive allocation agreement that entitled CROP to participate in distributions from the portfolio should returns exceed certain amounts. During the first quarter of 2022, the real estate firm sold this portfolio of properties. Our TRS realized a promote distribution of $30.3 million from the sale during the first quarter of 2022. As a result of the sale, we no longer manage this portfolio.

Related-Party Transactions

Related-Party Transactions	3 Months Ended
	Mar. 31, 2023
Related Party Transactions [Abstract]
Related-Party Transactions	Related-Party Transactions Advisor Compensation CC Advisors III manages our business as our external advisor and, under the terms of our advisory agreement, performs certain services for us, including the identification, evaluation, negotiation, origination, acquisition and disposition of investments; and the management of our business. These activities are all subject to oversight by our board of directors. Our advisor is entitled to receive fees and compensation for services provided as mentioned below. Asset Management Fee. Under the amended and restated advisory agreement entered May 7, 2021 and renewed through May 7, 2023, CROP pays our advisor a monthly management fee equal to 0.0625% of GAV (gross asset value of CROP, calculated pursuant to our valuation guidelines and reflective of the ownership interest held by CROP in such gross assets), subject to a cap of 0.125% of net asset value of CROP. Asset management fees to our advisor for the three months ended March 31, 2023 and 2022 were $4.8 million and $3.8 million, respectively. Acquisition Expense Reimbursement. We will reimburse our advisor for out-of-pocket expenses in connection with the selection, evaluation, structuring, acquisition, financing and development of investments, whether or not such investments are acquired, and make payments to third parties or possibly certain of our advisor’s affiliates in connection with providing services to us. Performance Participation Allocation. In addition to the fees paid to our advisor for services provided pursuant to our advisory agreement, CC Advisors - SLP, LLC, an affiliate of our advisor and the Special Limited Partner at CROP, holds a performance participation interest in CROP that entitles it to receive an allocation of CROP's total return to its capital account. The performance participation allocation is an incentive fee indirectly paid to our advisor and receipt of the allocation is subject to the ongoing effectiveness of the advisory agreement. As the performance participation allocation is associated with the performance of a service by the advisor, it is expensed in our condensed consolidated statements of operations. Total return is defined as all distributions accrued or paid (without duplication) on Participating Partnership units (all units in CROP with the exception of preferred units and the Special Limited Partner Interest) plus the change in the aggregate net asset value of such Participating Partnership units. The annual total return will be allocated solely to the Special Limited Partner only after the other unit holders have received a total return of 5% (after recouping any loss carryforward amount) and such allocation will continue until the allocation between the Special Limited Partner and all other unit holders is equal to 12.5% and 87.5%, respectively. Thereafter, the Special Limited Partner will receive an allocation of 12.5% of the annual total return. The performance participation allocation is ultimately determined at the end of each calendar year, accrues monthly and will be paid in cash or Class I units at the election of the Special Limited Partner after the completion of each calendar year. Due to the decrease in the value of our net assets, no performance participation allocation was incurred during the three months ended March 31, 2023. In March 2023, the $20.3 million performance participation allocation incurred as a result of the increase in the value of our net assets and dividends paid to stockholders during the year ended December 31, 2022 was paid in cash. Block C (now known as Westerly and Millcreek North) and Jasper (now known as The Archer) Investments On June 28, 2022, we, through our indirect subsidiaries, admitted entities affiliated with us and our advisor, Brickyard QOF, LLC (“Brickyard QOF”) and HV Millcreek, LLC (“Millcreek,” and together with Brickyard QOF, the “Affiliated Members”) as members in CW Block C, LLC, a development joint venture with CMOF (“Block C”), and CW Jasper, LLC, a development project owned 100% by CROP (“The Archer”). Block C owns land held for development of two projects called Westerly and Millcreek North. The Affiliated Members are owned directly or indirectly by our officers or directors, as well as certain employees of CROP and our advisor or its affiliates. In connection with their admission as members, the Affiliated Members made an aggregate capital contribution of $8.5 million and $2.4 million to Block C and The Archer, respectively. The Affiliated Members participate in the economics of Block C and The Archer on the same terms and conditions as us. The operating agreements of Block C and The Archer were amended in August 2022 to reflect additional terms related to the admission of the Affiliated Members. Block C and The Archer are located in an Opportunity Zone, which provides tax benefits for development programs located in designated areas as established by Congress in the Tax Cuts and Jobs act of 2017. As of March 31, 2023, our ownership in The Archer was 79.9%. As a result of the consummation of the CMOF Merger on September 27, 2022, we acquired CMOF’s joint venture interests in Block C, increasing our ownership interest in Block C to 79.0%.

Noncontrolling Interests

Noncontrolling Interests	3 Months Ended
	Mar. 31, 2023
Noncontrolling Interest [Abstract]
Noncontrolling Interests	Noncontrolling Interests Noncontrolling Interests - Limited Partners Common Limited OP Units and LTIP Units are CROP units not owned by us and collectively referred to as “Noncontrolling Interests – Limited Partners.” Common Limited OP Units - During the three months ended March 31, 2023 and 2022, we paid aggregate distributions to noncontrolling OP Unit holders of $5.7 million and $5.5 million, respectively. LTIP Units - As of March 31, 2023, there were 735,008 unvested time LTIP awards and 597,105 unvested performance LTIP awards outstanding. LTIP Unit award share-based compensation, included within other in the condensed consolidated statement of stockholders’ equity, was $1.1 million and $0.9 million for the three months ended March 31, 2023 and 2022, respectively. Total unrecognized compensation expense for LTIP Units at March 31, 2023 is $11.4 million and is expected to be recognized on a straight-line basis through December 2026. Noncontrolling Interests - Partially Owned Entities As of March 31, 2023, noncontrolling interests in consolidated entities not wholly owned by us ranged from 1% to 63%, with the average being 12%. On June 28, 2022, Block C was recapitalized. We contributed additional funds to obtain a controlling interest and consolidated the Block C joint venture, recording the Block C membership interests owned by CMOF and Affiliated Members at that time as noncontrolling interests. Upon recapitalization, additional noncontrolling interests were recorded with the Affiliated Members contribution to The Archer, an entity that was already consolidated.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies 417 Callowhill As of March 31, 2023, we had a remaining commitment of up to $22.0 million on the 417 Callowhill preferred equity investment. Litigation We are subject to a variety of legal actions in the ordinary course of our business, most of which are covered by liability insurance. While the resolution of these matters cannot be predicted with certainty, as of March 31, 2023, we believe the final outcome of such legal proceedings and claims will not have a material adverse effect on our liquidity, financial position or results of operations.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events We evaluate subsequent events up until the date the condensed consolidated financial statements are issued and have determined there are none to be reported or disclosed in the condensed consolidated financial statements other than those mentioned below. Hollywood Mezzanine Loan On April 14, 2023, we entered into an agreement to provide a $10.0 million mezzanine loan to assist in the development of 2215 Hollywood Apartments, a 180-unit multifamily development in Hollywood, FL. We provided the first $2.0 million of our $10.0 million commitment upon the execution of the agreement. The mezzanine loan accrues interest at a rate of 14.5% on the entire commitment and matures on April 14, 2026 subject to certain conditions being met, with a 12-month extension option.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The condensed consolidated financial statements, including the condensed notes thereto, are unaudited and exclude some of the disclosures required in audited financial statements. The condensed consolidated balance sheet as of December 31, 2022 has been derived from the Company’s audited financial statements as of that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments and eliminations, consisting only of normal recurring adjustments necessary for a fair presentation in conformity with GAAP. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for the period ending December 31, 2022 filed with the SEC. As our comprehensive income is equivalent to net income, our accompanying condensed consolidated financial statements do not include a Statement of Other Comprehensive Income.
Principles of Consolidation	The accompanying condensed consolidated financial statements include the accounts of the Company and its subsidiaries for which we have a controlling interest. All intercompany balances and transactions have been eliminated in consolidation. Certain amounts in the prior year condensed consolidated financial statements and notes to the condensed consolidated financial statements have been reclassified to conform to the current year presentation. Such reclassifications did not impact previously reported net loss or accumulated deficit or change net cash provided by or used in operating, investing or financing activities.
Organization and Offering Costs	Organization and Offering Costs Organization and offering costs in the Follow-on Offering are paid by purchasers of the shares through an adjustment to the purchase price of the share or their distribution (depending on the class of share purchased) or by us. They are recorded as an offset to equity. As of March 31, 2023, $17.3 million in organization and offering costs had been incurred in connection with the Follow-on Offering. Organization and offering costs in the 2019 Private Offering and 2023 Private Offering were and are paid by us. Offering costs are deferred and amortized up to the redemption date through interest expense. We incurred $13.2 million of organization and offering costs related to the 2019 Private Offering, which was fully subscribed and terminated in March 2022. We incurred $3.2 million of organization and offering costs related to the 2023 Private Offering as of March 31, 2023.
Recent Accounting Pronouncements	Recent Accounting Pronouncements On January 1, 2023, we adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which amended the accounting for credit losses for certain financial instruments. The standard replaced the incurred loss impairment methodology with a methodology that requires consideration of a broader range of reasonable and supportable information to determine and record credit loss estimates. The adoption has not had a material impact on our condensed consolidated financial statements through March 31, 2023.
Fair Value of Financial Instruments	Fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. Fair value measurements are categorized into one of three levels of the fair value hierarchy based on the lowest level of significant input used. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Considerable judgment and a high degree of subjectivity are involved in developing these estimates. These estimates may differ from the actual amounts that we could realize upon settlement. The fair value hierarchy is as follows: Level 1 - Quoted (unadjusted) prices in active markets for identical assets or liabilities. Level 2 - Other observable inputs, either directly or indirectly, other than quoted prices included in Level 1, including: • Quoted prices for similar assets/liabilities in active markets; • Quoted prices for identical or similar assets/liabilities in non-active markets (e.g., few transactions, limited information, non-current prices, high variability over time); • Inputs other than quoted prices that are observable for the asset/liability (e.g., interest rates, yield curves, volatility, default rates); and • Inputs that are derived principally from or corroborated by other observable market data. Level 3 - Unobservable inputs that cannot be corroborated by observable market data.

Real Estate Assets, Net (Tables

Real Estate Assets, Net (Tables)	3 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Schedule of Carrying Amounts of Consolidated Real Estate Assets	The following table summarizes the carrying amounts of our consolidated real estate assets (in thousands): March 31, 2023 December 31, 2022 Land $ 255,633 $ 267,876 Buildings and improvements 1,270,267 1,348,019 Furniture, fixtures and equipment 52,436 54,067 Intangible assets 38,421 40,692 Construction in progress (1) 113,761 106,223 1,730,518 1,816,877 Less: Accumulated depreciation and amortization (129,649) (119,270) Real estate assets, net $ 1,600,869 $ 1,697,607 (1) Includes construction in progress for our development projects and capitalized costs for improvements not yet placed in service at our stabilized properties.
Schedule of Purchase Price Allocation	The following table summarizes the purchase price allocation of the real estate assets acquired or consolidated during the year ended December 31, 2022 (in thousands): Allocated Amounts Property Location Date Consolidated Building Land Land Improvements Personal Property Lease Intangibles Debt Mark to Market Total Cottonwood Lighthouse Point Pompano Beach, FL 6/22/22 $ 76,322 $ 13,647 $ 1,843 $ 2,011 $ 1,783 $ — $ 95,606 Cottonwood Ridgeview Plano, TX 9/19/22 54,337 9,275 2,548 835 1,603 1,504 70,102 Cottonwood Clermont Clermont, FL 9/21/22 67,400 5,705 5,744 1,817 1,792 3,428 85,886 $ 198,059 $ 28,627 $ 10,135 $ 4,663 $ 5,178 $ 4,932 $ 251,594
Schedule of Equity Transaction Adjustments	Accordingly, CMOF’s noncontrolling interest in the three investments was reduced by its carrying amount and the difference between the carrying amount and the consideration paid was recorded as an adjustment to our equity through additional paid-in capital as follows (in thousands, except share and per share data): 2022 Consideration CMOF Merger Common stock issued and outstanding 5,001,000 Exchange ratio 0.8669 CCI common stock issued as consideration 4,335,367 Per share value of CCI Common Stock $ 20.7007 Fair value of CCI Common Stock issued $ 89,745 Fair value of OP Units issued 8,273 Settlement of CMOF related party notes and interest 1,327 Settlement of net other liabilities of CMOF 142 Total consideration $ 99,487 2022 Change in equity CMOF Merger Carrying amount of noncontrolling interest $ 49,178 Total consideration 99,487 Additional paid in capital adjustment $ (50,309) Fair value of CCI Common Stock issued $ 89,745 Additional paid in capital adjustment (50,309) Total change in equity $ 39,436

Investments in Unconsolidated_2

Investments in Unconsolidated Real Estate Entities (Tables)	3 Months Ended
	Mar. 31, 2023
Real Estate [Abstract]
Schedule of Equity Method Investments	Our investments in unconsolidated real estate entities consist of ownership interests in stabilized properties and preferred equity investments as follows as of March 31, 2023 and December 31, 2022 (in thousands): Balance at Property / Development Location % Owned March 31, 2023 December 31, 2022 Stabilized Assets Alpha Mill (1) (2) Charlotte, NC 73.7% (2) $ 30,170 $ 10,470 Cottonwood Bayview (1) St. Petersburg, FL 71.0% 13,188 30,792 Cottonwood Lighthouse Point (1) (3) Pompano Beach, FL 86.8% (3) 41,498 — Fox Point (1) Salt Lake City, UT 52.8% 14,459 14,794 Toscana at Valley Ridge (1) Lewisville, TX 58.6% 7,734 9,382 Melrose Phase II (1) Nashville, TN 79.8% 5,936 6,185 Preferred Equity Investments Lector85 Ybor City, FL 10,330 10,006 Astoria West (formerly Vernon) Queens, NY 21,233 20,567 801 Riverfront West Sacramento, CA 21,080 20,259 417 Callowhill Philadelphia, PA 13,706 9,949 Other 547 803 Total $ 179,881 $ 133,207 (1) We account for our tenant-in-common interests in these properties as equity method investments. (2) On March 31, 2023, we issued 1,063,293 CROP Units for an additional 45.4% tenant-in-common interests in Alpha Mill, increasing our ownership to 73.7%. The value of the CROP Units on the close date was $19.8 million based on the net asset value of CROP Units as of February 28, 2023. All of the tenant-in-common interests were purchased at the same price. One of the sellers was a related party. (3) On February 14, 2023, we sold 13.2% of our ownership interest in Cottonwood Lighthouse Point for $13.6 million and we recorded a gain on sale of $1.0 million related to the transaction, which reduced our remaining ownership in Cottonwood Lighthouse Point to 86.8%. As a result of this transaction, Cottonwood Lighthouse Point was deconsolidated and is recorded as an investment in unconsolidated real estate from February 14, 2023.

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Schedule of Mortgage Notes And Revolving Credit Facility	The following table is a summary of the mortgage notes and revolving credit facility secured by our properties as of March 31, 2023 and December 31, 2022 ($ in thousands): Principal Balance Outstanding Indebtedness Weighted-Average Interest Rate Weighted-Average Remaining Term (1) March 31, 2023 December 31, 2022 Fixed rate loans Fixed rate mortgages 4.40% 5.5 Years $ 829,242 $ 528,308 Total fixed rate loans 829,242 528,308 Variable rate loans (2) Floating rate mortgages 5.43% (3) 7.7 Years 142,744 426,130 Variable rate revolving credit facility (4) 6.35% 2.0 Years 35,500 54,000 Total variable rate loans 178,244 480,130 Total secured loans 1,007,486 1,008,438 Unamortized debt issuance costs (7,119) (4,878) Premium on assumed debt, net (3,543) (3,423) Mortgage notes and revolving credit facility, net $ 996,824 $ 1,000,137 (1) For loans where we have the ability to exercise extension options at our own discretion, the maximum maturity date has been assumed. (2) The interest rate of our variable rate loans is primarily based on one-month LIBOR or one-month SOFR. (3) Includes the impact of interest rate caps in effect on March 31, 2023. (4) We may obtain advances secured against Cottonwood One Upland and Parc Westborough up to $125.0 million on our variable rate revolving credit facility, as long as certain loan-to-value ratios and other requirements are maintained. At March 31, 2023, the amount on our variable rate revolving credit facility was capped at $106.3 million primarily due to the interest rate environment.
Schedule of Construction Loans	Information on our construction loans are as follows ($ in thousands): Development Interest Rate Final Expiration Date Loan Amount Amount Drawn at March 31, 2023 Amount Drawn at December 31, 2022 Park Avenue (1) (1) (1) $ — $ 37,000 Cottonwood Broadway One-Month USD Libor + 1.9% May 15, 2024 44,625 40,957 39,728 Cottonwood Highland One-Month USD SOFR + 2.55% May 1, 2029 44,250 25,412 18,599 $ 88,875 $ 66,369 $ 95,327 (1) The Park Avenue construction loan was refinanced in March 2023 with a $43.5 million fixed rate mortgage which matures in 2028 and is included in mortgage notes above.
Schedule of Unsecured Promissory Notes	Information on our unsecured promissory notes are as follows ($ in thousands): Offering Size Interest Rate Maturity Date Maximum Extension Date March 31, 2023 December 31, 2022 2017 6% Notes (1) $ 35,000 6.00% December 31, 2023 December 31, 2024 $ 20,618 $ 20,718 2019 6% Notes 25,000 6.00% December 31, 2023 December 31, 2025 22,075 22,235 $ 60,000 $ 42,693 $ 42,953 (1) We exercised the option to extend the maturity date on our 2017 6% Notes for one additional year to December 31, 2023, which increased the interest rate to 6.25% for the period from January 1, 2023 to December 31, 2023.
Schedule of Mortgage Notes, Repayments of Principal	The aggregate maturities, including amortizing principal payments on our debt for years subsequent to March 31, 2023 are as follows (in thousands): Year Mortgage Notes and Revolving Credit Facility Construction Loans Unsecured Total 2023 (1) $ 727 $ 40,957 $ 42,693 $ 84,377 2024 (2) 36,508 — — 36,508 2025 2,013 — — 2,013 2026 127,522 — — 127,522 2027 367,417 — — 367,417 Thereafter 473,299 25,412 — 498,711 $ 1,007,486 $ 66,369 $ 42,693 $ 1,116,548 (1) Of the amounts maturing in 2023, $41.0 million relates to the construction loan for Cottonwood Broadway, which can be extended to May 15, 2024, $20.6 million relates to our 2017 6% Unsecured Promissory Notes which can be extended to December 31, 2024, and $22.1 million relates to our 2019 6% Unsecured Promissory Notes which can be extended for two one (2) Of the amounts maturing in 2024, $35.5 million relates to our variable rate revolving credit facility, which can be extended to March 19, 2025, subject to the satisfaction of certain conditions.

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The table below includes the carrying value and fair value for our financial instruments for which it is practicable to estimate fair value (in thousands): March 31, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value Fixed rate mortgages $ 829,242 $ 810,339 $ 528,308 $ 509,134 Floating rate mortgages $ 142,744 $ 140,788 $ 426,130 $ 421,189 Variable rate revolving credit facility $ 35,500 $ 35,500 $ 54,000 $ 54,000 Construction loans $ 66,369 $ 66,369 $ 95,327 $ 95,327 Series 2019 Preferred Stock $ 126,102 $ 126,102 $ 127,065 $ 127,065 Series 2023 Preferred Stock $ 31,318 $ 31,318 $ — $ — Unsecured promissory notes $ 42,693 $ 42,693 $ 42,953 $ 42,953

Preferred Stock (Tables)

Preferred Stock (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Schedule of Preferred Stock	Information on our preferred stock as of March 31, 2023 and December 31, 2022 is as follows: Shares Outstanding at Dividend Rate Extension Dividend Rate Redemption Date Maximum Extension Date March 31, 2023 December 31, 2022 Series 2019 Preferred Stock 5.5% 6.0% December 31, 2023 December 31, 2025 12,610,166 12,706,485 Series 2023 Preferred Stock 6.0% 6.5% (1) June 30, 2027 June 30, 2029 3,131,836 — (1) Represents the fully extended dividend rate. During the first-year extension, the dividend rate is 6.25%.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Schedule of Common Stock Outstanding	The following table details the movement in the Company's outstanding shares for each class of common stock: Three Months Ended March 31, 2023 Class T Class D Class I Class A Total December 31, 2022 4,815,122 64,673 3,861,049 26,604,864 35,345,708 Issuance of common stock 312,220 101,083 260,180 — 673,483 Distribution reinvestment 7,428 171 6,210 20,883 34,692 Exchanges and transfers (1) (725) — 99,768 — 99,043 Repurchases of common stock (25,023) — (115,566) (912,538) (1,053,127) March 31, 2023 5,109,023 165,926 4,111,641 25,713,209 35,099,799 (1) Exchanges represent the number of shares OP Unit holders have exchanged for Class I shares during the period. Transfers represent Class T shares that were converted to Class I shares during the period.
Schedule of Common Stock Distributions	We declared the following monthly distributions for each share of our common stock as shown in the table below: Shareholder Record Date Monthly Rate Annually January 31, 2023 $ 0.06083333 $ 0.73 February 28, 2023 $ 0.06083333 $ 0.73 March 31, 2023 $ 0.06083333 $ 0.73

Organization and Business (Deta

Organization and Business (Details)		1 Months Ended	3 Months Ended	16 Months Ended	28 Months Ended
	Jul. 08, 2022 USD ($) shares	Mar. 31, 2022 USD ($)	Mar. 31, 2023 USD ($) realEstateUnit project apartmentCommunity land_parcel	Mar. 31, 2023 USD ($) realEstateUnit project apartmentCommunity land_parcel	Mar. 31, 2022 USD ($)	Dec. 22, 2020 USD ($)	Dec. 31, 2022 USD ($) $ / shares	Nov. 30, 2021 USD ($)	Nov. 30, 2019 USD ($) $ / shares
Subsidiary, Sale of Stock [Line Items]
Number of projects | project			2	2
Park Avenue
Subsidiary, Sale of Stock [Line Items]
Ownership interest	100%
Cottonwood Broadway
Subsidiary, Sale of Stock [Line Items]
Ownership interest	100%
CW Block C, LLC
Subsidiary, Sale of Stock [Line Items]
Ownership interest	79%
Owned Interest
Subsidiary, Sale of Stock [Line Items]
Number of multifamily apartment communities | apartmentCommunity			34	34
Number of real estate units | realEstateUnit			9,820	9,820
Number of real estate properties | land_parcel			4	4
Structured Investment Interest
Subsidiary, Sale of Stock [Line Items]
Number of multifamily apartment communities | apartmentCommunity			4	4
Number of real estate units | realEstateUnit			1,293	1,293
Structured Investment Interest | Under Construction
Subsidiary, Sale of Stock [Line Items]
Number of multifamily apartment communities | apartmentCommunity			2	2
Number of real estate units | realEstateUnit			504	504
Follow on Offering
Subsidiary, Sale of Stock [Line Items]
Stock offered, value								$ 1,000,000,000
Proceeds from issuance of follow-on offering				$ 187,600,000
Primary Offering
Subsidiary, Sale of Stock [Line Items]
Stock offered, value								900,000,000
Distribution Reinvestment Plan
Subsidiary, Sale of Stock [Line Items]
Stock offered, value								$ 100,000,000
Proceeds from issuance of follow-on offering			$ 3,200,000
Class A and Class TX Common Stock | IPO
Subsidiary, Sale of Stock [Line Items]
Proceeds from offering including dividend reinvestment plan offering						$ (122,000,000)
Series 2019 Preferred Stock | Private Placement
Subsidiary, Sale of Stock [Line Items]
Stock offered, value									$ 128,000,000
Share price (in dollars per share) | $ / shares									$ 10
Proceeds from private offering		$ 13,200,000			$ 127,000,000
Series 2023 Preferred Stock | Private Placement
Subsidiary, Sale of Stock [Line Items]
Stock offered, value							$ 100,000,000
Proceeds from issuance of follow-on offering			$ 31,300,000
Share price (in dollars per share) | $ / shares							$ 10
Class A | CMOF Merger
Subsidiary, Sale of Stock [Line Items]
Share conversion ratio	0.8669
CRII, CMRI, CMRII and CMOF Merger (in shares) | shares	4,335,367
CMOF, CRII, CMRI and CMRII Merger	$ 89,700,000

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	1 Months Ended	28 Months Ended
	Mar. 31, 2022	Mar. 31, 2022	Mar. 31, 2023
Cottonwood Communities Management, LLC
Debt Instrument [Line Items]
Offering costs incurred			$ 17.3
Private Placement | Series 2019 Preferred Stock
Debt Instrument [Line Items]
Proceeds from private offering	$ 13.2	$ 127
2023 Private Offering | Cottonwood Communities Management, LLC
Debt Instrument [Line Items]
Offering costs incurred			$ 3.2

Real Estate Assets, Net - Carry

Real Estate Assets, Net - Carrying Amount of Real Estate Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Land	$ 255,633	$ 267,876
Buildings and improvements	1,270,267	1,348,019
Furniture, fixtures and equipment	52,436	54,067
Intangible assets	38,421	40,692
Construction in progress	113,761	106,223
Real estate investment property, at cost	1,730,518	1,816,877
Less: Accumulated depreciation and amortization	(129,649)	(119,270)
Real estate assets, net	$ 1,600,869	$ 1,697,607

Real Estate Assets, Net - Narra

Real Estate Assets, Net - Narrative (Details) $ in Thousands				1 Months Ended	3 Months Ended
	Feb. 14, 2023 USD ($)	Sep. 20, 2022 USD ($) a	Jun. 22, 2022 USD ($)	Sep. 30, 2022 USD ($) shares	Mar. 31, 2023 USD ($) investment shares	Mar. 31, 2022 USD ($)	Feb. 13, 2023
Business Acquisition [Line Items]
Issuance of common stock (in shares) | shares					673,483
Issuance of common stock					$ 13,407	$ 32,930
Capital expenditures					$ 10,230	$ 18,488
CMOF Merger
Business Acquisition [Line Items]
Number Of investments | investment					3
OP Units
Business Acquisition [Line Items]
Issuance of common stock (in shares) | shares				141,543
Issuance of common stock				$ 2,900
Cottonwood Lighthouse Point
Business Acquisition [Line Items]
Proceeds from issuance of debt			$ 48,000
Weighted-average amortization period (in years)			6 months
Cottonwood Ridgeview Acquisition
Business Acquisition [Line Items]
Tenant-in-common interest in property				0.095
Cottonwood Clermont Acquisition
Business Acquisition [Line Items]
Proceeds from issuance of debt				$ 35,500
Galleria Land Purchase
Business Acquisition [Line Items]
Acres of land (in acres) | a		26
Capital expenditures		$ 28,500
Cottonwood Lighthouse Point
Business Acquisition [Line Items]
Proceeds from sale	$ 13,600
% Owned	86.80%						100%
Gain on transaction cost	$ 1,000

Real Estate Assets, Net - Asset

Real Estate Assets, Net - Asset Acquisition (Details) - USD ($) $ in Thousands				3 Months Ended
	Sep. 21, 2022	Sep. 19, 2022	Jun. 22, 2022	Mar. 31, 2023
Asset Acquisition [Line Items]
Building				$ 198,059
Land				28,627
Land Improvements				10,135
Personal Property				4,663
Lease Intangibles				5,178
Debt Mark to Market				4,932
Consideration transferred				$ 251,594
Cottonwood Lighthouse Point
Asset Acquisition [Line Items]
Building			$ 76,322
Land			13,647
Land Improvements			1,843
Personal Property			2,011
Lease Intangibles			1,783
Debt Mark to Market			0
Consideration transferred			$ 95,606
Cottonwood Ridgeview
Asset Acquisition [Line Items]
Building		$ 54,337
Land		9,275
Land Improvements		2,548
Personal Property		835
Lease Intangibles		1,603
Debt Mark to Market		1,504
Consideration transferred		$ 70,102
Cottonwood Clermont
Asset Acquisition [Line Items]
Building	$ 67,400
Land	5,705
Land Improvements	5,744
Personal Property	1,817
Lease Intangibles	1,792
Debt Mark to Market	3,428
Consideration transferred	$ 85,886

Real Estate Assets, Net - Equit

Real Estate Assets, Net - Equity Transaction Adjustments for CMOF (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) investment $ / shares shares	Dec. 31, 2022 shares
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Common stock outstanding (in shares) | shares	35,099,799	35,345,708
CMOF Merger
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Number Of investments | investment	3
Fair value of CCI Common Stock issued	$ 89,745
Total consideration	99,487
Carrying amount of noncontrolling interest	49,178
Additional paid in capital adjustment	(50,309)
Total change in equity	$ 39,436
CMOF Merger | Common Stock
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Common stock issued (in shares) | shares	5,001,000
Common stock outstanding (in shares) | shares	5,001,000
Exchange ratio	0.8669
CMOF Merger | Common Stock | CCI
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
CCI common stock issued as consideration (in shares) | shares	4,335,367
Per share value of CCI Common Stock (in dollars per share) | $ / shares	$ 20.7007
Fair value of CCI Common Stock issued	$ 89,745
Fair value of OP Units issued	8,273
Settlement of CMOF related party notes and interest	1,327
Settlement of net other liabilities of CMOF	$ 142

Investments in Unconsolidated_3

Investments in Unconsolidated Real Estate Entities - Schedule of Equity Method Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Feb. 14, 2023	Feb. 13, 2023	Dec. 31, 2022
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Cottonwood Lighthouse Point
Schedule of Equity Method Investments [Line Items]
Proceeds from sale		$ 13,600
Gain on sale		$ 1,000
OP Units | Alpha Mill
Schedule of Equity Method Investments [Line Items]
Stock issued during period shares acquisition (in shares)	1,063,293
Tenant-in-common interest in property	0.454
Ownership interest	73.70%
CRII, CMRI and CMRII Merger	$ 19,800
Unconsolidated Properties
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 179,881			$ 133,207
Alpha Mill | Unconsolidated Properties | Charlotte, NC | Stabilized Assets
Schedule of Equity Method Investments [Line Items]
% Owned	73.70%
Equity method investments	$ 30,170			10,470
Cottonwood Bayview | Unconsolidated Properties | St. Petersburg, FL | Stabilized Assets
Schedule of Equity Method Investments [Line Items]
% Owned	71%
Equity method investments	$ 13,188			30,792
Cottonwood Lighthouse Point
Schedule of Equity Method Investments [Line Items]
% Owned		86.80%	100%
Proceeds from sale		$ 13,600
Cottonwood Lighthouse Point | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Cottonwood Lighthouse Point
Schedule of Equity Method Investments [Line Items]
% Owned		86.80%
Sale of ownership percentage		13.20%
Cottonwood Lighthouse Point | Unconsolidated Properties | Pompano Beach, FL | Stabilized Assets
Schedule of Equity Method Investments [Line Items]
% Owned	86.80%
Equity method investments	$ 41,498			0
Fox Point | Unconsolidated Properties | Salt Lake City, UT | Stabilized Assets
Schedule of Equity Method Investments [Line Items]
% Owned	52.80%
Equity method investments	$ 14,459			14,794
Toscana At Valley Ridge | Unconsolidated Properties | Lewisville, TX | Stabilized Assets
Schedule of Equity Method Investments [Line Items]
% Owned	58.60%
Equity method investments	$ 7,734			9,382
Melrose Phase II | Unconsolidated Properties | Nashville, TN | Stabilized Assets
Schedule of Equity Method Investments [Line Items]
% Owned	79.80%
Equity method investments	$ 5,936			6,185
Lector85 | Unconsolidated Properties | Ybor City, FL | Preferred Equity Investments
Schedule of Equity Method Investments [Line Items]
Equity method investments	10,330			10,006
Astoria West (formerly Vernon) | Unconsolidated Properties | Queens, NY | Preferred Equity Investments
Schedule of Equity Method Investments [Line Items]
Equity method investments	21,233			20,567
801 Riverfront | Unconsolidated Properties | West Sacramento, CA | Preferred Equity Investments
Schedule of Equity Method Investments [Line Items]
Equity method investments	21,080			20,259
417 Callowhill | Unconsolidated Properties | Philadelphia, PA | Preferred Equity Investments
Schedule of Equity Method Investments [Line Items]
Equity method investments	13,706			9,949
Other | Unconsolidated Properties
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 547			$ 803

Investments in Unconsolidated_4

Investments in Unconsolidated Real Estate Entities - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022
Schedule of Equity Method Investments [Line Items]
Equity in earnings (losses) of unconsolidated real estate entities	$ 1,647		$ 2,670
Stabilized Assets | Cottonwood Bayview | St. Petersburg, FL | Unconsolidated Properties
Schedule of Equity Method Investments [Line Items]
Payment for additional interest		$ 16,900
Stabilized Assets | Toscana At Valley Ridge | Lewisville, TX | Unconsolidated Properties
Schedule of Equity Method Investments [Line Items]
Payment for additional interest		$ 1,200
Preferred Equity Investments
Schedule of Equity Method Investments [Line Items]
Equity in earnings (losses) of unconsolidated real estate entities	2,900		1,700
Preferred Equity Investments | 417 Callowhill
Schedule of Equity Method Investments [Line Items]
Payments to acquire investment	11,400
Remaining commitment	2,600
Investment in loan	22,000
CRII Merger | Stabilized Assets
Schedule of Equity Method Investments [Line Items]
Equity in earnings (losses) of unconsolidated real estate entities	$ (1,200)		$ 1,000

Debt - Schedule of Mortgage Not

Debt - Schedule of Mortgage Notes And Revolving Credit Facility (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Total secured loans	$ 1,007,486,000	$ 1,008,438,000
Unamortized debt issuance costs	(7,119,000)	(4,878,000)
Premium on assumed debt, net	(3,543,000)	(3,423,000)
Mortgage notes and revolving credit facility, net	996,824,000	1,000,137,000
Future Acquisition Financing
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity	125,000,000
Line of credit facility, current borrowing capacity	$ 106,300,000
Fixed rate loans
Debt Instrument [Line Items]
Weighted average fixed interest rate	4.40%
Weighted average remaining term	5 years 6 months
Total secured loans	$ 829,242,000	528,308,000
Variable rate loans
Debt Instrument [Line Items]
Total secured loans	$ 178,244,000	480,130,000
Variable rate loans | Floating rate mortgages
Debt Instrument [Line Items]
Weighted average variable rate	5.43%
Weighted average remaining term	7 years 8 months 12 days
Total secured loans	$ 142,744,000	426,130,000
Variable rate loans | Variable rate revolving credit facility | Revolving Credit Facility
Debt Instrument [Line Items]
Weighted average variable rate	6.35%
Weighted average remaining term	2 years
Total secured loans	$ 35,500,000	$ 54,000,000

Debt - Schedule of Construction

Debt - Schedule of Construction Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Amount drawn	$ 66,369	$ 95,327
Floating rate mortgages
Debt Instrument [Line Items]
Loan Amount	43,500
Construction Loan Payable
Debt Instrument [Line Items]
Loan Amount	88,875
Amount drawn	66,369	95,327
Construction Loan Payable | Park Avenue
Debt Instrument [Line Items]
Amount drawn	0	37,000
Construction Loan Payable | Cottonwood Broadway
Debt Instrument [Line Items]
Loan Amount	44,625
Amount drawn	$ 40,957	39,728
Construction Loan Payable | Cottonwood Broadway | LIBOR
Debt Instrument [Line Items]
Interest Rate	1.90%
Construction Loan Payable | Cottonwood Highland
Debt Instrument [Line Items]
Loan Amount	$ 44,250
Amount drawn	$ 25,412	$ 18,599
Construction Loan Payable | Cottonwood Highland | SOFR
Debt Instrument [Line Items]
Interest Rate	2.55%

Debt - Narrative (Details)

Debt - Narrative (Details)	3 Months Ended
	Mar. 31, 2023
Unsecured Debt
Debt Instrument [Line Items]
Increase in interest rate	0.25%

Debt - Schedule of Unsecured Pr

Debt - Schedule of Unsecured Promissory Notes (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Unsecured promissory notes, net	$ 42,693,000	$ 42,953,000
Unsecured Debt
Debt Instrument [Line Items]
Offering Size	60,000
Unsecured promissory notes, net	42,693,000	42,953,000
Unsecured Debt | 2017 6% Notes
Debt Instrument [Line Items]
Offering Size	$ 35,000
Interest Rate	6%
Unsecured promissory notes, net	$ 20,618,000	20,718,000
Unsecured Debt | 2019 6% Notes
Debt Instrument [Line Items]
Offering Size	$ 25,000
Interest Rate	6%
Unsecured promissory notes, net	$ 22,075,000	$ 22,235,000
Unsecured Debt | 2017 6.25% Notes
Debt Instrument [Line Items]
Interest Rate	6.25%

Debt - Schedule of Mortgage N_2

Debt - Schedule of Mortgage Notes, Repayments of Principal (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) extension	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
2023	$ 84,377
2024	36,508
2025	2,013
2026	127,522
2027	367,417
Thereafter	498,711
Principal payment on mortgage loans	1,116,548
Mortgage notes and revolving credit facility, net	996,824	$ 1,000,137
Construction Loans
Debt Instrument [Line Items]
2023	40,957
2024	0
2025	0
2026	0
2027	0
Thereafter	25,412
Principal payment on mortgage loans	66,369
Mortgage Notes and Revolving Credit Facility
Debt Instrument [Line Items]
2023	727
2024	36,508
2025	2,013
2026	127,522
2027	367,417
Thereafter	473,299
Principal payment on mortgage loans	1,007,486
Unsecured Promissory Notes
Debt Instrument [Line Items]
2023	42,693
2024	0
2025	0
2026	0
2027	0
Thereafter	0
Principal payment on mortgage loans	42,693
Unsecured Promissory Notes | Construction Loans
Debt Instrument [Line Items]
Mortgage notes and revolving credit facility, net	41,000
Unsecured Promissory Notes | 2017 6% Notes
Debt Instrument [Line Items]
Mortgage notes and revolving credit facility, net	$ 20,600
Interest rate	6%
Unsecured Promissory Notes | 2019 6% Notes
Debt Instrument [Line Items]
Mortgage notes and revolving credit facility, net	$ 22,100
Interest rate	6%
Number of extensions | extension	2
Term of extension	1 year
Unsecured Promissory Notes | Variable rate revolving credit facility
Debt Instrument [Line Items]
Mortgage notes and revolving credit facility, net	$ 35,500

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unsecured promissory notes	$ 42,693	$ 42,953
Carrying Value | Series 2019 Preferred Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Preferred stock series	126,102	127,065
Carrying Value | Series 2023 Preferred Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Preferred stock series	31,318	0
Carrying Value | Variable rate revolving credit facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Lines of credit, fair value disclosure	35,500	54,000
Carrying Value | Fixed rate mortgages
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgages	829,242	528,308
Carrying Value | Floating rate mortgages
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgages	142,744	426,130
Carrying Value | Construction loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgages	66,369	95,327
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unsecured promissory notes	42,693	42,953
Fair Value | Series 2019 Preferred Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Preferred stock series	126,102	127,065
Fair Value | Series 2023 Preferred Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Preferred stock series	31,318	0
Fair Value | Variable rate revolving credit facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Lines of credit, fair value disclosure	35,500	54,000
Fair Value | Fixed rate mortgages
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgages	810,339	509,134
Fair Value | Floating rate mortgages
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgages	140,788	421,189
Fair Value | Construction loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgages	$ 66,369	$ 95,327

Preferred Stock - Narrative (De

Preferred Stock - Narrative (Details) $ in Thousands		1 Months Ended	3 Months Ended
	Jan. 31, 2022 USD ($)	Apr. 30, 2022 USD ($)	Mar. 31, 2023 USD ($) classesOfPreferredStock shares	Mar. 31, 2022 USD ($) shares
Subsidiary, Sale of Stock [Line Items]
Proceeds from issuance of preferred stock			$ 31,315	$ 14,162
Number of shares redeemed (in shares) | shares			1,053,127
Common stock/OP Units repurchased			$ 19,626	3,394
Series 2023 Preferred Stock | Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Number of classes of preferred stock outstanding | classesOfPreferredStock			2
Proceeds from issuance of preferred stock			$ 31,300
Preferred dividend value incurred			$ 200
Number of shares redeemed (in shares) | shares			0
Series 2019 Preferred Stock | Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Number of classes of preferred stock outstanding | classesOfPreferredStock			2
Proceeds from issuance of preferred stock				15,500
Preferred dividend value incurred			$ 1,700	1,700
Number of shares redeemed (in shares) | shares			96,319
Common stock/OP Units repurchased			$ 900
Series 2016 Preferred Stock | Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Preferred dividend value incurred				$ 2,400
Number of shares redeemed (in shares) | shares				15,750
Common stock/OP Units repurchased		$ 139,800		$ 200
Series 2017 Preferred Stock | Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Common stock/OP Units repurchased	$ 2,600

Preferred Stock - Schedule of P

Preferred Stock - Schedule of Preferred Stock (Details) - shares	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Series 2019 Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Dividend Rate	5.50%
Extension Dividend Rate	6%
Preferred stock outstanding (in shares)	12,610,166	12,706,485
Series 2023 Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Dividend Rate	6%
Extension Dividend Rate	6.50%
Preferred stock outstanding (in shares)	3,131,836	0
Series 2023 Preferred Stock | During First-Year Extension
Subsidiary, Sale of Stock [Line Items]
Extension Dividend Rate	6.25%

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Common Stock Outstanding (Details)	3 Months Ended
	Mar. 31, 2023 shares
Common Stock Outstanding [Roll Forward]
Shares outstanding, beginning balance (in shares)	35,345,708
Issuance of common stock (in shares)	673,483
Distribution reinvestment (in shares)	34,692
Exchanges and transfers (in shares)	99,043
Repurchases of common stock (in shares)	(1,053,127)
Shares outstanding, ending balance (in shares)	35,099,799
Class T
Common Stock Outstanding [Roll Forward]
Shares outstanding, beginning balance (in shares)	4,815,122
Issuance of common stock (in shares)	312,220
Distribution reinvestment (in shares)	7,428
Exchanges and transfers (in shares)	(725)
Repurchases of common stock (in shares)	(25,023)
Shares outstanding, ending balance (in shares)	5,109,023
Class D
Common Stock Outstanding [Roll Forward]
Shares outstanding, beginning balance (in shares)	64,673
Issuance of common stock (in shares)	101,083
Distribution reinvestment (in shares)	171
Exchanges and transfers (in shares)	0
Repurchases of common stock (in shares)	0
Shares outstanding, ending balance (in shares)	165,926
Class I
Common Stock Outstanding [Roll Forward]
Shares outstanding, beginning balance (in shares)	3,861,049
Issuance of common stock (in shares)	260,180
Distribution reinvestment (in shares)	6,210
Exchanges and transfers (in shares)	99,768
Repurchases of common stock (in shares)	(115,566)
Shares outstanding, ending balance (in shares)	4,111,641
Class A
Common Stock Outstanding [Roll Forward]
Shares outstanding, beginning balance (in shares)	26,604,864
Issuance of common stock (in shares)	0
Distribution reinvestment (in shares)	20,883
Exchanges and transfers (in shares)	0
Repurchases of common stock (in shares)	(912,538)
Shares outstanding, ending balance (in shares)	25,713,209

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Subsidiary, Sale of Stock [Line Items]
Aggregate distributions paid	$ 6,900
Distributions paid in cash	6,246	$ 4,174
Dividend reinvestment plan, cash paid	$ 700
Number of shares redeemed (in shares)	1,053,127
Repurchase of common stock/OP Units	$ 19,626	$ 3,394
Common Stock
Subsidiary, Sale of Stock [Line Items]
Number of shares redeemed (in shares)	1,053,127
Repurchase of common stock/OP Units	$ 19,000
Average repurchase price (in dollars per share)	$ 18.02

Stockholders' Equity - Schedu_2

Stockholders' Equity - Schedule of Common Stock Distributions (Details) - $ / shares	Mar. 31, 2023	Feb. 28, 2023	Jan. 31, 2023
Equity [Abstract]
Monthly rate (in dollars per share)	$ 0.06083333	$ 0.06083333	$ 0.06083333
Annually (in dollars per share)	$ 0.73	$ 0.73	$ 0.73

Promote from Incentive Alloca_2

Promote from Incentive Allocation Agreement (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2018 realEstateUnit
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Promote from incentive allocation agreement | $	$ 0	$ 30,309
Disposal Group, Disposed of by Sale, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of real estate properties disposed | realEstateUnit			12

Related-Party Transactions (Det

Related-Party Transactions (Details)		1 Months Ended	3 Months Ended
	May 07, 2021	Mar. 31, 2023 USD ($) project	Mar. 31, 2023 USD ($) project	Mar. 31, 2022 USD ($)	Sep. 27, 2022	Jun. 28, 2022 USD ($)
Related Party Transaction [Line Items]
Performance participation allocation			$ 0	$ 19,934,000
Number of projects | project		2	2
CROP (''Jasper'')
Related Party Transaction [Line Items]
Percent of development project owned						100%
C R O P The Archer
Related Party Transaction [Line Items]
Percent of development project owned		79.90%	79.90%
CW Block C, LLC | Affiliated Members
Related Party Transaction [Line Items]
Percent of development project owned					79%
Capital contribution						$ 8,500,000
CW Jasper, LLC | Affiliated Members
Related Party Transaction [Line Items]
Capital contribution						$ 2,400,000
Independent Director Compensation | Affiliated Entity
Related Party Transaction [Line Items]
Gross asset value of CROP percentage	0.0625%
Net asset value of CROP percentage	0.125%
Asset management fees			$ 4,800,000	$ 3,800,000
Percentage of total return	5%
Percentage of annual total return	12.50%
Independent Director Compensation | Affiliated Entity | Limited Partners
Related Party Transaction [Line Items]
Percentage of total return	12.50%
Performance participation allocation		$ 20,300,000	$ 0
Independent Director Compensation | Affiliated Entity | Other Ownership Interest
Related Party Transaction [Line Items]
Percentage of total return	87.50%

Noncontrolling Interests (Detai

Noncontrolling Interests (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Noncontrolling Interest [Line Items]
Distributions to investors	$ 12,113	$ 13,847
Share-based compensation	$ 1,160	865
Not Wholly Owned | Minimum
Noncontrolling Interest [Line Items]
Noncontrolling interest, ownership percentage by noncontrolling owners	1%
Not Wholly Owned | Maximum
Noncontrolling Interest [Line Items]
Noncontrolling interest, ownership percentage by noncontrolling owners	63%
Not Wholly Owned | Weighted Average
Noncontrolling Interest [Line Items]
Noncontrolling interest, ownership percentage by noncontrolling owners	12%
OP Units
Noncontrolling Interest [Line Items]
Distributions to investors	$ 5,700	5,500
LTIP Units
Noncontrolling Interest [Line Items]
Number of unvested awards outstanding (in shares)	735,008
Share-based compensation	$ 1,100	$ 900
Total unrecognized compensation expense	$ 11,400
Performance LTIP
Noncontrolling Interest [Line Items]
Number of unvested awards outstanding (in shares)	597,105

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Mar. 31, 2023 USD ($)
417 Callowhill
Subsidiary, Sale of Stock [Line Items]
Investment-related Liabilities	$ 22

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event - Hollywood Mezzanine Loan - 2215 Hollywood Apartments	Apr. 14, 2023 USD ($) apartmentUnit
Subsequent Event [Line Items]
Loan amount	$ 10,000,000
Number of real estate units | apartmentUnit	180
Proceeds from issuance of debt	$ 2,000,000
Improvement commitments	$ 10,000,000
Interest rate	14.50%
Extension period	12 months