Cottonwood Communities Finalizes RealSource Acquisition

Cottonwood Communities, Inc., a non-traded multifamily REIT, and RealSource Properties, Inc., a private owner of an 11-property, 3,565-unit apartment portfolio, have finalized Cottonwood’s acquisition of RealSource in a private stock-for-stock and unit-for-unit merger transaction valued at approximately $500 million.

The acquisition increases the gross asset value of Salt Lake City-based Cottonwood’s portfolio to $2.6 billion, with 48 multifamily communities and 11,037 units across 13 states. It expands the REIT’s footprint into Ohio, Colorado and Kentucky and strengthens its presence in Texas, North Carolina, and Georgia. Additionally, as part of the broader transaction, Cottonwood assumed third-party property management of five other properties.

“The completion of this acquisition signals a pivot to an offensive posture for Cottonwood
Communities, ushering in a new phase of growth,” said CEO Daniel Shaeffer. “Building on this momentum and the expanded scale of our platform, Cottonwood is well poised to advance our strategic priorities heading into 2026.”

Pictured: RealSource’s Steepleway Downs in Houston.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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