Reynolds Asset Management secures
$19.5 million refinancing for Violet Estates

May 14, 2024 - Front Section

Poughkeepsie, NY Following the completion of the town’s most recent active-adult living residential community, Violet Estates, in 2023, Reynolds Asset Management (Reynolds) has secured a $19.5 million loan to refinance the property. The rental residences for people ages 55+ were built in response to Dutchess County’s economic growth and to solve a key aspect of the continued housing shortage in the area for this key demographic.

“Closing on Violet Estates’ refinancing allows us to be a long-term owner of the property and remain invested in the community,” said Reynolds Asset Management founder and CEO, Lou Reynolds. “Market challenges around interest rates and post-construction financing haven’t deterred our team from our mission of providing quality housing to the local market. These apartments and townhomes fill a critical housing gap for active adults looking to downsize and offer them comfort, convenience and flexibility in a community of their peers. We’re proud to be part of this tangible, positive change.”

The refinance is a seven-year Fannie Mae loan executed in partnership with Walker & Dunlop and senior managing director Allan Edelson — Reynolds’ fourth transaction with the lenders. With an interest rate of 5.93% and four years of interest-only payments, the loan replaces Reynolds’ original construction debt of $18.5 million at 11.75%. The 55+ community is also in a 15-year PILOT agreement with Dutchess County’s International Development Agency (Dutchess County IDA).

“The Dutchess County IDA was happy to work with Reynolds Asset Management on the Violet Estates project,” said Sarah Lee, CEO of Think Dutchess and executive director of the Dutchess County IDA. “Reynolds’ project will not only increase the availability of housing for our residents but also the rateables for the town of Poughkeepsie and Dutchess County, and we’re especially aligned with their commitment to investing in our region.”

“Having worked with the Reynolds team on multiple projects, we are proud to assist them in securing permanent ownership of Violet Estates and to provide the community with an economic boost,” said Edelson.

Violet Estates is located at 35 Violet Ave. in the Fairview hamlet of the town of Poughkeepsie. The development features 84 units ranging from studios to two-bedroom townhomes, ideal for the active adults in the area. Apartments feature in-home washers and dryers, walk-in showers, double under-mount sinks and double closets in some residences, while others feature private patios and balconies. Residents can utilize amenities such as the private lounge, fitness center bocce courts and a dog park.

In addition to homes, Violet Estates features 7,000 s/f of retail space which will house various businesses opening summer 2024 including a juice and smoothie bar, yoga studio and personal training gym, coffee shop, art gallery, antique furniture store and an event balloon business.

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