PRIOR PERFORMANCE TABLES

EX1A-15 ADD EXHB 21 d219502dex1a15addexhb.htm PRIOR PERFORMANCE TABLES 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 REIT II, Inc. Cottonwood Residential, Inc. is a real estate investment trust that, through its affiliates and subsidiaries, provides real estate investment and management services. Cottonwood Capital Property Management II, Inc., an indirect subsidiary of Cottonwood Residential, Inc., sponsored Cottonwood Multifamily REIT I, Inc. which is a real estate investment trust that has investment objectives similar to us. 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 the prior programs were not similar to those of Cottonwood Multifamily REIT II, Inc.

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

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

Description of the Tables

All information contained in the Tables in this Exhibit 15.1 is as of December 31, 2015. The following tables are included herein:

Table III – Annual Operating Results of Prior Real Estate Programs

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

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

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

Prior performance information regarding Cottonwood Multifamily REIT I, Inc. is not available because Cottonwood Multifamily REIT I, Inc. has not yet raised its minimum offering amount as of the date of this offering circular. On August 3, 2016, Cottonwood Multifamily REIT I, Inc. acquired interests in three multifamily apartment communities. These properties were acquired through the use of bridge financing.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR PROGRAMS

(UNAUDITED)

Table III sets forth the annual operating results of prior real estate programs during the five years ending December 31, 2015. All figures are as of December 31, 2015 (amounts in dollars and thousands). All of the offerings for the prior real estate programs described in this Table III have closed.


Brook Highland Place
	2011		2012			2013			2014			2015
Summary Balance Sheet Data at December 31,
Total assets (before depreciation)		—		1,061			27,377			27,944			28,529
Total assets (after depreciation)		—		1,042			26,816			26,440			25,987
Liabilities		—		(1,183	)		(16,626	)		(16,426	)		(16,030	)
Summary Income Statement Data ⁽¹⁾
Gross revenues		—		1,226			3,799			3,822			3,840
Operating expenses		—		(611	)		(1,841	)		(1,860	)		(2,105	)

Operating income		—		615			1,958			1,962			1,735
Interest expense		—		(163	)		(346	)		(580	)		(569	)
Non-operating, including depreciation and amortization		—		(489	)		(1,564	)		(979	)		(1,084	)

Net income (loss)		—		(37	)		48			403			82
Summary Cash Flows Data ⁽¹⁾
Cash provided by operating activities		—		566			1,611			1,453			1,128
Cash provided by (used in) investing activities		—		26			(484	)		(661	)		(654	)
Cash (used in) financing activities		—		(123	)		(352	)		(314	)		(326	)

Net increase in cash		—		468			775			477			147
Amount and Source of Distributions
Cash distributions paid to investors⁽²⁾		—		390			787			580			139

⁽¹⁾	Operating results and cash flow data represent 100% of the property results from Cottonwood Residential O.P., LP’s initial acquisition date forward.

⁽²⁾	Cash distributions may exceed cash generated due to funds set aside for capital improvements.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR PROGRAMS

(UNAUDITED)


Toscana at Valley Ridge
	2011		2012		2013		2014		2015
Summary Balance Sheet Data at December 31,
Total assets (before depreciation)		—		—		—		—		31,114
Total assets (after depreciation)		—		—		—		—		30,636
Liabilities		—		—		—		—		(19,911	)
Summary Income Statement Data ⁽¹⁾
Gross revenues		—		—		—		—		1,250
Operating expenses		—		—		—		—		(630	)

Operating income		—		—		—		—		620
Interest expense		—		—		—		—		(358	)
Non-operating, including depreciation and amortization		—		—		—		—		(1,284	)

Net (loss)		—		—		—		—		(1,021	)
Summary Cash Flows Data ⁽¹⁾
Cash provided by operating activities		—		—		—		—		690
Cash (used in) investing activities		—		—		—		—		(13	)
Cash (used in) financing activities		—		—		—		—		(43	)

Net increase in cash		—		—		—		—		635
Amount and Source of Distributions
Cash distributions paid to investors⁽²⁾		—		—		—		—		—

⁽¹⁾	Operating results and cash flow data represent 100% of the property results from Cottonwood Residential O.P., LP’s initial acquisition date forward.

⁽²⁾	Cash distributions may exceed cash generated due to funds set aside for capital improvements.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR PROGRAMS

(UNAUDITED)


Scott Mountain
	2011			2012			2013			2014			2015
Summary Balance Sheet Data at December 31,
Total assets (before depreciation)		24,315			24,514			24,909			25,363			40,239
Total assets (after depreciation)		23,179			22,626			22,248			21,884			39,403
Liabilities		(15,983	)		(15,827	)		(15,949	)		(15,640	)		(23,837	)
Summary Income Statement Data ⁽¹⁾
Gross revenues		2,898			2,892			2,976			3,144			3,567
Operating expenses		(1,210	)		(1,227	)		(1,363	)		(1,433	)		(1,427	)

Operating income		1,689			1,666			1,612			1,711			2,140
Interest expense		(816	)		(807	)		(792	)		(791	)		(834	)
Non-operating, including depreciation and amortization		(776	)		(799	)		(819	)		(850	)		(2,474	)

Net income (loss)		97			60			1			70			(1,168	)
Summary Cash Flows Data ⁽¹⁾
Cash provided by operating activities		889			898			850			865			1,564
Cash (used in) investing activities		(166	)		(131	)		(437	)		(354	)		(393	)
Cash provided by (used in) financing activities		(223	)		(233	)		(247	)		(260	)		7,364

Net increase in cash		499			535			165			250			8,535
Amount and Source of Distributions
Cash distributions paid to investors⁽²⁾		401			455			502			125			6,692

⁽¹⁾	Operating results and cash flow data represent 100% of the property results from Cottonwood Residential O.P., LP’s initial acquisition date forward.

⁽²⁾	Cash distributions may exceed cash generated due to funds set aside for capital improvements.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR PROGRAMS

(UNAUDITED)


Courtney Oaks
	2011		2012		2013		2014			2015
Summary Balance Sheet Data at December 31,
Total assets (before depreciation)		—		—		—		1,125			38,157
Total assets (after depreciation)		—		—		—		N/A			37,432
Liabilities		—		—		—		(238	)		(24,527	)
Summary Income Statement Data ⁽¹⁾
Gross revenues		—		—		—		567			3,451
Operating expenses		—		—		—		(205	)		(1,325	)

Operating income		—		—		—		362			2,126
Interest expense		—		—		—		(138	)		(538	)
Non-operating, including depreciation and amortization		—		—		—		(353	)		(2,812	)

Net (loss)		—		—		—		(129	)		(1,224	)
Summary Cash Flows Data ⁽¹⁾
Cash provided by operating activities		—		—		—		418			1,604
Cash (used in) investing activities		—		—		—		(88	)		(408	)
Cash provided by (used in) financing activities		—		—		—		(57	)		7,391

Net increase in cash		—		—		—		272			8,587
Amount and Source of Distributions
Cash distributions paid to investors⁽²⁾		—		—		—		—			7,617

⁽¹⁾	Operating results and cash flow data represent 100% of the property results from Cottonwood Residential O.P., LP’s initial acquisition date forward.

⁽²⁾	Cash distributions may exceed cash generated due to funds set aside for capital improvements.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR PROGRAMS

(UNAUDITED)


Sanctuary at Highland Oaks
	2011		2012		2013		2014		2015
Summary Balance Sheet Data at December 31,
Total assets (before depreciation)		—		—		—		—		52,703
Total assets (after depreciation)		—		—		—		—		51,870
Liabilities		—		—		—		—		(34,284	)
Summary Income Statement Data ⁽¹⁾
Gross revenues		—		—		—		—		2,488
Operating expenses		—		—		—		—		(1,055	)

Operating income		—		—		—		—		1,433
Interest expense		—		—		—		—		(324	)
Non-operating, including depreciation and amortization		—		—		—		—		(2,271	)

Net (loss)		—		—		—		—		(1,161	)
Summary Cash Flows Data ⁽¹⁾
Cash provided by operating activities		—		—		—		—		1,860
Cash (used in) investing activities		—		—		—		—		(206	)
Cash provided by (used in) financing activities		—		—		—		—		—

Net increase in cash		—		—		—		—		1,654
Amount and Source of Distributions
Cash distributions paid to investors⁽²⁾		—		—		—		—		48

⁽¹⁾	Operating results and cash flow data represent 100% of the property results from Cottonwood Residential O.P., LP’s initial acquisition date forward.

⁽²⁾	Cash distributions may exceed cash generated due to funds set aside for capital improvements.

TABLE III

ANNUAL OPERATING RESULTS OF PRIOR PROGRAMS

(UNAUDITED)


Summer Park
	2011		2012		2013		2014			2015
Summary Balance Sheet Data at December 31,
Total assets (before depreciation)		—		—		—		40,592			41,683
Total assets (after depreciation)		—		—		—		40,226			40,322
Liabilities		—		—		—		(21,274	)		(22,965	)
Summary Income Statement Data ⁽¹⁾
Gross revenues		—		—		—		1,505			4,313
Operating expenses		—		—		—		(586	)		(1,677	)

Operating income		—		—		—		919			2,636
Interest expense		—		—		—		(403	)		(1,091	)
Non-operating, including depreciation and amortization		—		—		—		(438	)		(1,641	)

Net income (loss)		—		—		—		78			(97	)
Summary Cash Flows Data ⁽¹⁾
Cash provided by operating activities		—		—		—		418			1,565
Cash (used in) investing activities		—		—		—		(135	)		(193	)
Cash provided by (used in) financing activities		—		—		—		(164	)		1,726

Net increase in cash		—		—		—		119			3,098
Amount and Source of Distributions
Cash distributions paid to investors⁽²⁾		—		—		—		403			1,972

⁽¹⁾	Operating results and cash flow data represent 100% of the property results from Cottonwood Residential O.P., LP’s initial acquisition date forward.

⁽²⁾	Cash distributions may exceed cash generated due to funds set aside for capital improvements.

TABLE IV

OPERATING RESULTS OF COMPLETED PRIOR PROGRAMS

(UNAUDITED)

Table IV presents information regarding the operating results of the last five prior real estate programs that have completed operations (no longer hold properties) during the five years ended December 31, 2015. All amounts presented are as of December 31, 2015.


	Blue Swan			Northwest Corners			Scott Mountain			Tramore Village			Valencia Park
Aggregate Dollar Amount Raised	$	8,818,000		$	8,140,000		$	10,020,000		$	11,410,000		$	12,530,000
Duration of Program (Months)		85			114			116			114			108
Date of Program Closing		10/10/2015			3/26/2015			6/5/2015			6/19/2015			3/24/2015
Total Compensation Paid to Sponsor ⁽¹⁾	$	907,843		$	3,006,664		$	2,170,770		$	3,531,866		$	1,985,768
Median Leverage		51	%		58	%		61	%		64	%		70	%
Annualized Return on Investment⁽²⁾		4.06	%		2.89	%		10.01	%		-0.63	%		-9.96	%
Start Date		9/9/2008			9/22/2005			9/29/2005			12/1/2005			3/30/2006
End Date		10/10/2015			3/26/2015			6/5/2015			6/19/2015			3/24/2015
Median Month		March-12			June-10			August-10			September-10			September-10

⁽¹⁾	Includes acquisition fees, property and asset management fees, disposition fees, financing fees, and other ancillary services. A portion of these fees are used to reimburse costs incurred by the Sponsor.

⁽²⁾	Annualized return on investment is the internal rate of return over the program period using the respective cash flows from invested capital, distributions received, and proceeds from sale.