EX1A-15 ADD EXHB 4 d658349dex1a15addexhb.htm EX1A-15 ADD EXHB - PRIOR PERFORMANCE TABLES EX1A-15 ADD EXHB - PRIOR PERFORMANCE TABLES

Exhibit 15.1

PRIOR PERFORMANCE TABLES

The following prior performance tables provide information relating to the real estate investment programs sponsored by Cottonwood Residential, Inc., Cottonwood Residential O.P., LP and their affiliates, collectively referred to herein as the “prior real estate programs.” These programs were not prior programs of Cottonwood Multifamily Opportunity Fund, Inc. Cottonwood Residential, Inc. is a real estate investment trust that, through its affiliates and subsidiaries, provided real estate investment and management services. See the offering circular “Prior Performance Summary – Restructuring of Cottonwood Residential, Inc.” for more information. Cottonwood Capital Property Management II, Inc., our sponsor, also sponsored Cottonwood Multifamily REIT I, Inc. which is a real estate investment trust that closed its $50 million, fully subscribed offering pursuant to Regulation A in April 2017 and invests in stabilized multifamily real estate and real estate-related assets. The other prior programs consisted of tenant in common offerings which had investment objectives that targeted investors who were completing tax deferred exchanges under Section 1031 of the Internal Revenue Code of 1986, as amended, and entities that were formed to accept the contribution of tenant in common interests in property in exchange for interests in such entity. Thus, while these prior programs acquired multifamily real estate, the investment objectives of such prior programs were not similar to those of Cottonwood Multifamily Opportunity Fund, Inc.

This information should be read together with the summary of information included in the “Prior Performance Summary” section of the offering circular.

INVESTORS SHOULD NOT CONSTRUE INCLUSION OF THE FOLLOWING TABLES AS IMPLYING, IN ANY MANNER, THAT WE WILL HAVE RESULTS COMPARABLE TO THOSE REFLECTED IN SUCH TABLES. DISTRIBUTABLE CASH FLOW, FEDERAL INCOME TAX DEDUCTIONS OR OTHER FACTORS COULD BE SUBSTANTIALLY DIFFERENT. INVESTORS SHOULD NOTE THAT, BY ACQUIRING OUR SHARES, THEY WILL NOT BE ACQUIRING ANY INTEREST IN ANY PRIOR PROGRAM.

Description of the Tables

All information contained in the Tables in this Exhibit 15.1 is as of December 31, 2017. The following tables are included herein:

Table I – Experience in Raising and Investing Funds

Table III – Annual Operating Results of Prior Real Estate Programs

Table IV – Operating Results of Prior Real Estate Programs Which Have Completed Operations

Table III includes information regarding the last five prior programs offered by Cottonwood Residential O.P., LP and its affiliates. Table IV includes information regarding the last five completed prior programs offered by Cottonwood Residential O.P., LP and its affiliates.

We have not included in this Exhibit 15.1 Table II (Compensation to Sponsor) or Table V (Sale or Disposition of Properties by Prior Real Estate Programs) because the information contained in these tables is not applicable to the prior programs.

 

1


TABLE I

EXPERIENCE IN RAISING AND INVESTING FUNDS

(UNAUDITED)

Table I sets forth the experience in raising and investing funds of prior real estate programs whose offerings closed during the three years ending December 31, 2017. All figures are as of December 31, 2017.

 

     Cottonwood Multifamily REIT I, Inc.  

Dollar amount offered

   $ 50,000,000  

Dollar amount raised

   $ 50,000,000  

Length of Offering

     9 months  

Months to invest 90% of amount of available for investment

     <1 month  

 

2


TABLE III

ANNUAL OPERATING RESULTS OF PRIOR PROGRAMS

(UNAUDITED)

Table III sets forth the annual operating results of prior real estate programs during the five years ending December 31, 2017. All figures are as of December 31, 2017 (amounts in dollars and thousands). All of the offerings for the prior real estate programs described in this Table III have closed.

 

Cottonwood Multifamily REIT I

                                 
     2013      2014      2015      2016     2017  

Summary Balance Sheet Data at December 31,

             

Total assets (before depreciation)

     —          —          10        51,921       50,833  

Total assets (after depreciation)

     —          —          —          48,784       43,134  

Liabilities

     —          —          —          (24,444     (2,162

Summary Income Statement Data

             

Gross revenues

     —          —          —          4,344       10,778  

Operating expenses

     —          —          —          (1,859     (4,737
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating income

     —          —          —          2,485       6,041  

Interest expense

     —          —          —          (2,106     (2,995

Non-operating, including depreciation and amortization

     —          —          —          (3,584     (5,871
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Net (loss)

     —          —          —          (3,205     (2,825

Summary Cash Flows Data

             

Cash provided by operating activities

     —          —          —          —         2,127  

Cash from (used in) investing activities

     —          —          —          (48,199     2,220  

Cash from (used in) financing activities

     —          —          10        50,570       (6,403
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Net increase (decrease) in cash

     —          —          —          2,371       (2,056

Amount and Source of Distributions

             

Distributions from operations

     —          —          —          259       2,714  

Distributions from financing

     —          —          —          —         —    

Distributions from sales

     —          —          —          —         —    

Distributions from offering proceeds

     —          —          —          —         —    

 

3


TABLE III

ANNUAL OPERATING RESULTS OF PRIOR PROGRAMS

(UNAUDITED)

Table III sets forth the annual operating results of prior real estate programs during the five years ending December 31, 2017. All figures are as of December 31, 2017 (amounts in dollars and thousands). All of the offerings for the prior real estate programs described in this Table III have closed.

 

Toscana at Valley Ridge

                                
     2013      2014      2015     2016     2017  

Summary Balance Sheet Data at December 31,

            

Total assets (before depreciation)

     —          —          31,114       31,631       31,418  

Total assets (after depreciation)

     —          —          30,636       30,059       28,723  

Liabilities

     —          —          (19,911     (19,929     (19,828

Summary Income Statement Data (1)

            

Gross revenues

     —          —          1,250       3,079       3,432  

Operating expenses

     —          —          (630     (1,384     (1,436
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Operating income

     —          —          620       1,695       1,996  

Interest expense

     —          —          (358     (834     (831

Non-operating, including depreciation and amortization

     —          —          (1,284     (1,224     (1,117
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Net (loss)

     —          —          (1,021     (363     48  

Summary Cash Flows Data (1)

            

Cash provided by operating activities

     —          —          690       1,805       1,196  

Cash (used in) investing activities

     —          —          (13     (634     601  

Cash (used in) financing activities

     —          —          (43     —         (102
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Net increase in cash

     —          —          635       1,171       1,695  

Amount and Source of Distributions

            

Distributions from operations

     —          —          —         200       1,252  

Distributions from financing

     —          —          —         —         —    

Distributions from sales

     —          —          —         —         —    

Distributions from offering proceeds

     —          —          —         —         —    

 

(1) 

Operating results and cash flow data represent 100% of the property results from Cottonwood Residential O.P., LP’s initial acquisition date forward.

 

4


TABLE III

ANNUAL OPERATING RESULTS OF PRIOR PROGRAMS

(UNAUDITED)

Table III sets forth the annual operating results of prior real estate programs during the five years ending December 31, 2017. All figures are as of December 31, 2017 (amounts in dollars and thousands). All of the offerings for the prior real estate programs described in this Table III have closed.

 

Scott Mountain

                              
     2013     2014     2015     2016     2017  

Summary Balance Sheet Data at December 31,

          

Total assets (before depreciation)

     24,909       25,363       40,239       40,275       41,093  

Total assets (after depreciation)

     22,248       21,884       39,403       37,947       37,163  

Liabilities

     (15,949     (15,640     (23,837     (23,877     (34,606

Summary Income Statement Data (1)

          

Gross revenues

     2,976       3,144       3,567       3,965       4,451  

Operating expenses

     (1,363     (1,433     (1,427     (1,441     (1,504
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     1,612       1,711       2,140       2,525       2,947  

Interest expense

     (792     (791     (834     (869     (1,149

Non-operating, including depreciation and amortization

     (819     (850     (2,474     (1,478     (1,569
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     1       70       (1,168     177       229  

Summary Cash Flows Data (1)

          

Cash provided by operating activities

     850       865       1,564       1,664       1,798  

Cash (used in) investing activities

     (437     (354     (393     (1,103     (540

Cash provided by (used in) financing activities

     (247     (260     7,364       —         10,400  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase in cash

     165       250       8,535       561       11,658  

Amount and Source of Distributions

          

Distributions from operations

     502       125       49       880       1,218  

Distributions from financing

     —         —         6,643       721       10,400  

Distributions from sales

     —         —         —         —         —    

Distributions from offering proceeds

     —         —         —         —         —    

 

(1) 

Operating results and cash flow data represent 100% of the property results from Cottonwood Residential O.P., LP’s initial acquisition date forward.

 

5


TABLE III

ANNUAL OPERATING RESULTS OF PRIOR PROGRAMS

(UNAUDITED)

Table III sets forth the annual operating results of prior real estate programs during the five years ending December 31, 2017. All figures are as of December 31, 2017 (amounts in dollars and thousands). All of the offerings for the prior real estate programs described in this Table III have closed.

 

Courtney Oaks

                               
     2013      2014     2015     2016     2017  

Summary Balance Sheet Data at December 31,

           

Total assets (before depreciation)

     —          1,125       38,157       38,658       47,270  

Total assets (after depreciation)

     —          N/A       37,432       36,569       43,718  

Liabilities

     —          (238     (24,527     (24,597     (24,346

Summary Income Statement Data (1)

           

Gross revenues

     —          567       3,451       3,718       3,992  

Operating expenses

     —          (205     (1,325     (1,326     (1,447
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     —          362       2,126       2,392       2,545  

Interest expense

     —          (138     (538     (1,042     (1,039

Non-operating, including depreciation and amortization

     —          (353     (2,812     (1,394     (1,498
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss)

     —          (129     (1,224     (44     8  

Summary Cash Flows Data (1)

           

Cash provided by operating activities

     —          418       1,604       1,382       1,507  

Cash (used in) investing activities

     —          (88     (408     (362     (609

Cash provided by (used in) financing activities

     —          (57     7,391       —         —    
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash

     —          272       8,587       1,021       898  

Amount and Source of Distributions

           

Distributions from operations

     —          —         226       339       883  

Distributions from financing

     —          —         7,391       532       —    

Distributions from sales

     —          —         —         —         —    

Distributions from offering proceeds

     —          —         —         —         —    

 

(1) 

Operating results and cash flow data represent 100% of the property results from Cottonwood Residential O.P., LP’s initial acquisition date forward.

 

6


TABLE III

ANNUAL OPERATING RESULTS OF PRIOR PROGRAMS

(UNAUDITED)

Table III sets forth the annual operating results of prior real estate programs during the five years ending December 31, 2017. All figures are as of December 31, 2017 (amounts in dollars and thousands). All of the offerings for the prior real estate programs described in this Table III have closed.

 

Summer Park

                               
     2013      2014     2015     2016     2017  

Summary Balance Sheet Data at December 31,

           

Total assets (before depreciation)

     —          40,592       41,683       41,240       41,958  

Total assets (after depreciation)

     —          40,226       40,322       38,828       38,438  

Liabilities

     —          (21,274     (22,965     (23,029     (23,068

Summary Income Statement Data

           

Gross revenues

     —          1,505       4,313       4,599       5,123  

Operating expenses

     —          (586     (1,677     (1,825     (2,065
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     —          919       2,636       2,774       3,057  

Interest expense

     —          (403     (1,091     (858     (858

Non-operating, including depreciation and amortization

     —          (438     (1,641     (1,108     (1,171
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     —          78       (97     808       1,028  

Summary Cash Flows Data

           

Cash provided by operating activities

     —          418       1,565       1,977       2,051  

Cash (used in) investing activities

     —          (135     (193     (805     (288

Cash provided by (used in) financing activities

     —          (164     1,726       —         —    
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net increase in cash

     —          119       3,098       1,173       1,763  

Amount and Source of Distributions

           

Distributions from operations

     —          403       588       1,258       1,449  

Distributions from financing

     —          —         1,384       342       —    

Distributions from sales

     —          —         —         —         —    

Distributions from offering proceeds

     —          —         —         —         —    

 

7


TABLE III

ANNUAL OPERATING RESULTS OF PRIOR PROGRAMS

(UNAUDITED)

Table III sets forth the annual operating results of prior real estate programs during the five years ending December 31, 2017. All figures are as of December 31, 2017 (amounts in dollars and thousands). All of the offerings for the prior real estate programs described in this Table III have closed.

 

Arbors at Fairview

                                 
     2013      2014      2015      2016     2017  

Summary Balance Sheet Data at December 31,

             

Total assets (before depreciation)

     —          —          —          17,449       17,351  

Total assets (after depreciation)

     —          —          —          17,372       16,660  

Liabilities

     —          —          —          (11,381     (11,612

Summary Income Statement Data

             

Gross revenues

     —          —          —          304       2,381  

Operating expenses

     —          —          —          (146     (1,123
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating income

     —          —          —          158       1,259  

Interest expense

     —          —          —          (36     (395

Non-operating, including depreciation and amortization

     —          —          —          (234     (1,115
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Net income (loss)

     —          —          —          (112     (252

Summary Cash Flows Data

             

Cash provided by operating activities

     —          —          —          2       863  

Cash (used in) investing activities

     —          —          —          375       (276

Cash provided by (used in) financing activities

     —          —          —          1,367       —    
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Net increase in cash

     —          —          —          1,744       587  

Amount and Source of Distributions

             

Distributions from operations

     —          —          —          108       678  

Distributions from financing

     —          —          —          1,367       —    

Distributions from sales

     —          —          —          —         —    

Distributions from offering proceeds

     —          —          —          —         —    

 

8


TABLE IV

OPERATING RESULTS OF COMPLETED PRIOR PROGRAMS

(UNAUDITED)

Table IV presents information regarding the operating results of the last five prior real estate programs that have completed operations (no longer hold properties) during the five years ended December 31, 2017. All amounts presented are as of December 31, 2017.

 

     Appling Lakes     Arbors at
Windsor Lake
    Gables
Apartments
    Sanctuary     West Town  

Aggregate Dollar Amount Raised

   $ 7,033,422     $ 6,807,000     $ 7,635,000     $ 18,025,760     $ 5,685,000  

Duration of Program (Months)

     65       115       119       25       120  

Date of Program Closing

     10/17/2017       8/30/2017       11/29/2017       8/29/2017       6/5/2017  

Total Compensation Paid to Sponsor(1)

   $ 1,596,242     $ 1,535,391     $ 1,556,118     $ 2,864,591     $ 1,726,758  

Median Leverage

     76     59     70     65     71

Annualized Return on Investment(2)

     16.78     6.31     3.16     93.77     3.7

Start Date

     5/17/2012       1/29/2008       12/31/2007       7/23/2015       5/31/2007  

End Date

     10/17/2017       8/30/2017       11/29/2017       8/29/2017       6/5/2017  

Median Month

     Jan-15       Nov-12       Dec-12       Aug-16       Jun-12  

 

(1) 

Includes acquisition fees, property and asset management fees, disposition fees, financing fees, and other ancillary services. A portion of these fees are used to reimburse costs incurred by the Sponsor.

(2) 

Annualized return on investment is the internal rate of return over the program period using the respective cash flows from invested capital, distributions received, and proceeds from sale.

 

9