Credit Facilities

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Credit Facilities

Credit Facilities

Information regarding secured credit facilities of our wholly owned investments is as follows:

Property Name	Debt Issuer	Maturity Date	Payment Type	Rate	March 31, 2021			December 31, 2020
Cottonwood West Palm	Berkadia Commercial Mortgage, LLC	June 1, 2029	Interest Only	3.93%	$	35,995,000	(3)	$	35,995,000
Cottonwood One Upland	J.P. Morgan Chase Bank, N.A.	March 19, 2023 (1)	Interest Only	Libor + 1.50-1.75% (2)	34,000,000		(4)	35,500,000
Total credit facilities					69,995,000			71,495,000
Unamortized debt issuance costs					(1,116,494)			(1,175,132)
Credit facilities, net					$	68,878,506		$	70,319,868
(1) All or a portion of the amount outstanding can be prepaid at any time and the maturity date can be extended for two one-year periods, subject to the satisfaction of certain conditions.
(2) The spread is contingent upon certain debt yield metrics.
(3) We may finance other acquisitions through our Berkadia Credit facility. There is no limit on the amount we can draw as long as we maintain certain loan-to-value ratios and other requirements as set forth in the loan documents.
(4) We may obtain advances secured against Cottonwood One Upland up to $67,600,000 on our JP Morgan Credit Facility, as well as finance other future acquisitions up to $125,000,000 in total revolving debt capacity as long as certain loan-to-value ratios and other requirements are maintained.

Should we finance other acquisitions through either of these credit facilities, each advance will be cross-collateralized with other advances within the respective facility. We are permitted to sell the multifamily apartment communities that are secured by the credit facilities individually, provided that certain debt coverage ratios and other requirements within the respective loan agreements are met.

We are in compliance with all covenants associated with our outstanding credit facilities as of March 31, 2021.