Gordon Road Capital (“Gordon Road”) is a real estate investment firm focused on identifying and executing high-value opportunities in the Southeast’s fastest-growing markets.
Led by Chairmen Brian Coulter and Rob Stewart—who bring over 40 years of experience each—Gordon Road is built on a legacy of institutional excellence. As former leaders of The JBG Companies (NYSE: JBGS), they spearheaded more than 235 investments, developed over 80 projects, and deployed nearly $4 billion in capital. Their decision to invest their own capital in high-growth markets led to a strategic partnership with Justin Coulter and Martin Pawlik.
Justin Coulter and Martin Pawlik, who met at Harvard Business School, bring extensive institutional real estate experience across acquisitions, development, financing, and capital markets. Collectively, they have executed over $19 billion in equity and debt transactions across a broad spectrum of asset classes.
Backed by some of the country’s most prominent real estate investors, Gordon Road Capital combines deep industry expertise with a hands-on, data-driven approach to unlock exceptional value in dynamic markets.
Lease Comparables
| Deca Camperdown | The McClaren | 408 Jackson | Averages | Subject (Post-Reno) | |
|---|---|---|---|---|---|
| Year Built | 2020 | 2023 | 2022 | 2022 | 2027 |
| Class | A | A | A | A | A |
| # of Units | 217 | 246 | 227 | 230 | 153 |
| Avg. Unit Size | 1,022 SF | 1,025 SF | 928 SF | 992 SF | 857 SF |
| $/Unit (Studio) | $2,521 | $1,937 | $1,900 | $2,119 | $2,200 |
| SF (Studio) | 642 SF | 583 SF | 676 SF | 634 SF | 595 SF |
| $/SF (Studio) | $3.93 | $3.32 | $2.32 | $3.19 | $3.70 |
| $/Unit (1-Bedroom) | $3,141 | $2,148 | $1,724 | $2,338 | $2,968 |
| SF (1-Bedroom) | 749 SF | 714 SF | 749 SF | 737 SF | 743 SF |
| $/SF (1-Bedroom) | $4.19 | $3.01 | $2.36 | $3.19 | $3.98 |
| $/Unit (2-Bedroom) | $4,002 | $2,893 | $3,062 | $3,319 | $4,100 |
| SF (2-Bedroom) | 1,142 SF | 1,219 SF | 1,176 SF | 1,179 SF | 1,112 SF |
| $/SF (2-Bedroom) | $3.50 | $2.37 | $2.02 | $2.63 | $3.64 |
| $/Unit (Penthouse - 2-Bedroom + Den) | $5,050 | $4,700 | N/A | $4,875 | $4,500 |
| SF (Penthouse - 2-Bedroom + Den) | 1,630 SF | 1,700 SF | N/A | 1,665 SF | 1,196 SF |
| $/SF (Penthouse - 2-Bedroom + Den) | $3.09 | $2.76 | N/A | $2.93 | $3.76 |
Sales Comparables
| Deca Camperdown | The Irby | Subject | |
|---|---|---|---|
| Date Sold | Jun-22 | Aug-21 | |
| Year Built | 2020 | 2020 | 2027 |
| # of Units | 217 | 277 | 159 |
| Avg. Unit Size | 1,022 SF | 724 SF | 857 SF |
| Sale Price | $125,000,000 | $115,550,000 | $66,198,260 |
| $/Unit | $576,037 | $417,148 | $416,341 |
| $/SF | $676 | $420 | $486 |
| Sources of Funds | Amount |
|---|---|
| LP Equity | $23,611,944 |
| GP Equity (1) | $6,304,596 |
| Senior Loan | $36,564,660 |
| Total Sources of Funds | $66,481,200 |
| Uses of Funds | Amount |
|---|---|
| Land | $3,348,688 |
| Pre Development | $275,000 |
| Hard Costs | $48,956,100 |
| Soft Costs | $11,168,515 |
| Development Fee | $2,732,897 |
| Total Uses of Funds | $66,481,200 |
(1) The Sponsor’s equity contribution may consist of friends and family equity, equity from funds controlled by the Sponsor, as well as some third-party investments.
The expected terms of the debt financing are as follows:
Construction Loan
- Lender: Centennial Bank
- Loan Amount: $36,564,660
- Initial Loan Term: 3 Years
- Extension Options: 2 one-year extensions (2)
- Interest Rate: SOFR + 4.25% (with a SOFR floor of 3.5%)
- Interest Rate Type: Floating
- Interest-Only Period: Interest-only during the initial term.
- Amortization: 30 Years (3)
- Stabilized Loan-to-Value: 36.0%
- Loan-to-Cost: 55.0%
Refinance Loan Assumptions
- Lender: TBD
- Loan Amount: $70,281,859
- Loan Term: 10 Years
- Extension Options: N/A
- Interest Rate: 5.25%
- Interest Rate Type: Fixed
- Interest-Only Period: N/A
- Amortization: 30 Years
- Loan-to-Value: 66.3%
(1) A substantial portion of the total acquisition for the Property will be paid with borrowed funds, i.e., debt. Please carefully review the Disclosures section below for additional information concerning the Sponsor's use of debt.
(2) Subject to: (a) payment of an extension fee of 0.25% of the Total Loan Amount for the first Extension Period and 0.35% of the Total Loan Amount for the second Extension Period (each an “Extension Fee”); (b) delivery of thirty (30) days prior written notice by Borrower to Lender; (c) no prior or existing events of default under the loan documentation governing or evidencing the Loan; (d) no material adverse effect shall have occurred; (e) all representations, warranties, and covenants in the loan documentation being true and correct in all material respects prior to and as of the commencement of each extension period; (f) for the first Extension Period: (i) lien free completion, (ii) certificate of occupancy, and (iii) a 54% LTV test (“As-Complete”); (g) for the second Extension Period: (iv) 1.20x DSCR test and (v) 47.5% LTV test (“As-Is”); and (h) there are adequate Loan Reserves for the remaining term, determined by Lender.
(3) Upon the earlier of (a) 1.10x DSCR; or (b) the second Extension Period, if applicable
Gordon Road Capital intends to make distributions from Gordon Road Capital Westfield LP QOF LLC as follows:
- Pari-passu all cash flow available for distribution to the Equity Investors(1) until the Equity Investors(1) receive a Preferred Return of 7.0% IRR;
- 80% / 20% (80% to Equity Investors(1) / 20% to Promoted/Carried Interest) of all cash flow available for distribution to a 10.0% IRR;
- 70% / 30% (70% to Equity Investors(1) / 30% to Promoted/Carried Interest) of all cash flow available for distribution to a 12.0% IRR;
- 60% / 40% (60% to Equity Investors(1) / 40% to Promoted/Carried Interest) of all cash flow available for distribution thereafter.
Gordon Road Capital intends to make distributions to investors after the payment of the company's liabilities (loan payments, operating expenses, and other fees as more specifically set forth in the LLC agreements, in addition to any member loans or returns due on member loan).
Distributions are expected to start in September 2028 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Gordon Road Capital, who may decide to delay distributions for any reason, including maintenance or capital reserves.
Gordon Road Capital will receive a promoted/carried interest as indicated above.
Promote Crystallization: To further align incentives between Sponsor and Investor, there is a promote crystallization upon a refinance of the construction loan (currently anticipated at Month 37). A hypothetical promote is calculated using the above waterfall assuming a sale at fair market value. Next, the theoretical promote is calculated as a percent of the total distributable cash, which is estimated to be ~18% based on current underwriting. After the refinance event, the promote is “locked” and 18% of every dollar is paid as promote until the end of the hold period including sales proceeds upon exit (the waterfall is not “run” again at exit). This helps align incentives for both Sponsor and investor by allowing the Sponsor to participate in promote cash flow upon refinance. Importantly, the promote crystallization yields a materially higher multiple to investors. It is estimated that for every dollar invested, the promote crystallization will yield 16 cents more to the investor over a 10-year period.
(1) Equity Investors include all members part of the Limited Partnership and General Partnership, including the Sponsorship Group.
You will pay certain fees and compensation over the life of the transaction; please refer to Gordon Road Capital's materials for details. The following fees and compensation will be paid (1)(4):
One-Time Fees:
| Type of Fee | Amount of Fee | Received By | Paid From |
|---|---|---|---|
| Development Fee | Approximately $2.8M or 5% of Hard and Soft Costs | Sponsor or Affiliate | Capitalized Equity Contribution |
| Refinance Fee | 75 bps | Sponsor | Refinance Loan Proceeds |
| Platform Fee | Flat One-Time Fee of $15,000 | RM Securities, LLC | Capitalized Equity Contribution |
| Placement Fee (4) | 4.00% of the Raised Amount up to $2 million, plus 3.50% of the Raised Amount in excess of $2 million. | RM Securities, LLC | Capitalized Equity Contribution |
Recurring Fees:
| Type of Fee | Amount of Fee | Received By | Paid From |
|---|---|---|---|
| Asset Management Fee (2) | 1.5% of Equity on an annual basis, paid monthly (0.125% each month) | Sponsor | Cash Flow |
| Property Management Fee (3) | 2.75% of Effective Gross Income | Third-Party | Cash Flow |
| Administration Solution Licensing Fee (4) | 1.00% per annum of the aggregate capital contributions of the RM platform investor for whom RM Technologies provides the Administration Solution. | RM Securities, LLC | Cash Flow / Capitalized Equity Contribution |
(1) Fees may be deferred to reduce impact to investor distributions.
(2) Does not commence until the earlier of (i) the Development Fee is earned and paid, or (ii) the 23-month anniversary of the construction loan closing date.
(3) The property management fee may end up being 3% if another third-party manager is used (not expected, but possible). 2.75% is currently being underwritten.
(4) For more information on the fees paid to RM Securities and its affiliates or any other fees you will pay in connection with Sponsor’s offering, please carefully review the Sponsor’s Investment Documents. Please also carefully review RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.
RM Securities, LLC, its registered representatives, affiliates, associated persons, and personnel of its affiliates who may also be associated with it, including our associated persons and personnel of our affiliates who are also be associated with RM Securities, LLC (it (“RM Securities,” “we,” “our,” or “us”) will receive fees, expense reimbursements, and other compensation (“Fees”) from the issuer of this investment offering, its sponsor, or an affiliate thereof (“Sponsor”), or otherwise in connection with Sponsor’s offering. The Fees paid to us are in addition to other fees you will pay to Sponsor or in connection with Sponsor’s investment offering. You will pay Fees to Sponsor, either directly or indirectly as an investor in the Sponsor’s offering. Sponsor will use the Fees you pay, as well as funds you invest in the relevant offering, to compensate us. The Fees paid to us will directly or indirectly be borne by you as the investor (typically, but not always, in the form of an expense of the Sponsor’s offering in which you invest) because such Fees will reduce the proceeds available for distribution to you and reduce the amount you earn over time.
For more information on the Fees paid to us, or any other Fees you will pay in connection with Sponsor’s offering, please carefully review the Sponsor’s Investment Documents. Please also carefully review RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.
No Approval, Opinion or Representation, or Warranty by RM Securities, LLC
Sponsor has provided, approved, and is solely responsible in all aspects for the information on this webpage (“Page”), including Sponsor’s offering documentation, which may include without limitation the Private Placement Memorandum, Operating or Limited Partnership Agreement, Subscription Agreement, the Project Summary and all exhibits and other documents attached thereto or referenced therein (collectively, the “Investment Documents”). The Investment Documents linked on this page have been prepared and posted by Sponsor, and not by RM Securities. We did not assist in preparing, do not adopt or endorse, and we are not otherwise responsible for, the Sponsor’s Investment Documents. We make no representations or warranties as to the accuracy of information on this Page or in the Sponsor’s Investment Documents and we accept no liability therefor. No part of the information on this Page or in the Sponsor’s Investment Documents is intended to be binding on us.
Sponsor’s Information Qualified by Investment Documents
The information on this Page is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete and subject to change at the Sponsor’s discretion at any time up to the closing date. The Sponsor’s Investment Documents and supplements thereto contain important information about the Sponsor’s offering including relevant investment objectives, the business plan, risks, charges, expenses, and other information, which you should consider carefully before investing. The information on this Page should not be used as a basis for an investor’s decision to invest.
Risk of Investment
This investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.
No Reliance on Forward-Looking Statements; Sponsor Assumptions
Sponsor is solely responsible for statements made concerning forward-looking statements and Assumptions, which apply only as of the date made, are preliminary and subject to change, and are expressly qualified in their entirety by the disclosures and cautionary statements included in Sponsor’s Investment Documents, which you should carefully review. Neither RM Securities nor Sponsor are obligated to update or revise such forward-looking statements or Assumptions to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Sponsor’s forward-looking statements and Assumptions are hypothetical, not based on actual investment achievements or events, and are presented solely for purposes of providing insight into the Sponsor’s investment objectives, detailing Sponsor’s anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of actual results; therefore, they are not a predictor, projection, or guarantee of future results. You should not rely on Sponsor’s forward-looking statements as a basis to invest.
Importantly, we do not adopt, endorse, or provide any assurance of returns or as to the accuracy or reasonableness of Sponsor’s Assumptions or forward-looking statements.
No Reliance on Past Performance
Any description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis to invest.
Sponsor’s Use of Debt
A substantial portion of the total cost of the real estate asset acquired by the Sponsor with investor funds (“Property”) will be paid with borrowed funds, i.e., debt. Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, and there is no assurance that the Sponsor will secure debt at the rates and terms presented on this Page or in the Sponsor’s Investment Documents, or at all. The use of borrowed money to acquire real estate is referred to as leveraging, which can amplify losses and could result in lender foreclosure. In addition, if the debt includes a variable (or “floating”) interest rate, the total amount of interest paid over the term of the debt will fluctuate and can increase. As a result, Sponsor’s use of debt can result in a loss of some or all of your investment.
Sponsor’s Offering is Not Registered
Sponsor’s securities offering will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement”). In addition, the offering will not be registered under any state securities laws in reliance on exemptions from state registration. Such securities (your ownership interests) are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption. All Private Placements on the Platform are intended solely for “Accredited Investors,” as that term is defined in Rule 501(a) under the Securities Act.
No Investment Advice
Nothing on this Page should be regarded as investment advice (either with respect to a particular security or regarding an overall investment strategy), a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised to understand and assess the risks associated with real estate or private placement investments. For additional information on RM Securities’ involvement in this offering, please carefully review the Sponsor’s Investment Documents, and RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.