The refinancing follows a successful lease-up and stabilization of the new construction project, replacing construction debt with long-term stabilized financing.
The Fannie Mae loan, totaling more than $6.7 million, was issued with a 10-year term and a rate of 5.835%. Reynolds and Walker & Dunlop were able to secure full-term interest-only payment terms for the life of the loan, demonstrating the confidence placed in the Vibe and its potential for long-term success.
This arrangement provides ample flexibility for the property’s ongoing operations and financial management.
“We are delighted to have successfully secured long-term financing with favorable terms for the Vibe, especially while operating in a challenging capital market for many borrowers,” Lou Reynolds, founder and CEO of Reynolds Asset Management, said. “This refinancing deal not only strengthens the financial stability of the property, but also empowers us to pursue new growth opportunities and deliver exceptional value to our investors and tenants.”
The Vibe apartment complex houses a mix of 12 one-bedroom and 16 two-bedroom apartments. Each home offers an open floor plan with modern finishes, along with in-unit washers and dryers.
Situated just blocks from the Bound Brook Train Station, the Vibe offers direct access to New York City. The property is also home to the WeMa Gallery, a 500-plus-square-foot art gallery, named for its location on West Main Street.
“Having closed multiple successful Fannie Mae loans with the Reynolds team makes collaborating with Reynolds on this refinancing endeavor for the Vibe even more exciting,” Allan Edelson at Walker & Dunlop said. “Their dedication to developing projects that uplift the local community and provide exceptional value makes us proud to be part of their journey. The refinancing of the Vibe is yet another testament to Reynolds’ unwavering commitment to creating thriving spaces that benefit both investors and the surrounding community.”