Key Takeaways
- • Lone Star Funds completed the sale of the Lofts at Reynolds Village, a 201-unit multifamily property with 63,000 square feet of ground-floor retail space in Asheville, North Carolina, to Baltimore-based Continental Realty Corporation.
- • The transaction represents the first disposition from a 42-asset portfolio acquired by Lone Star in September 2022, demonstrating the firm's execution on its value-add investment strategy within a three-year holding period.
- • Lone Star enhanced the property's value through repositioning efforts including optimized tenant mix, maintained strong occupancy levels, and drove growth in multifamily usage since acquisition.
- • The sale was structured as a REIT stock transaction, with financial terms undisclosed; Walker & Dunlop served as transaction advisors to Lone Star.
- • The disposition underscores institutional investor appetite for stabilized multifamily assets with complementary retail components in secondary markets experiencing growth.
Summary
Lone Star Funds announced on August 18, 2025, the successful completion of its sale of the Lofts at Reynolds Village to Continental Realty Corporation. The 201-unit multifamily community, located in Asheville, North Carolina, includes approximately 63,000 square feet of ground-floor retail space. The buyer, Continental Realty Corporation, is a Baltimore-based commercial real estate and investment firm.
The transaction marks a significant milestone as the first disposition from a 42-asset portfolio that Lone Star acquired in September 2022. The sale was structured as a REIT stock transaction, though the parties did not disclose financial terms. Walker & Dunlop provided advisory services to Lone Star throughout the transaction.
Since acquisition, Lone Star implemented a value-add strategy focused on operational optimization and asset repositioning. The firm maintained strong occupancy levels across the community while driving significant growth in multifamily usage. Notably, Lone Star worked to enhance the property's retail offering by optimizing the tenant mix, which the firm indicated strengthened the asset's overall market appeal and value profile.
Jérôme Foulon, Global Head of Commercial Real Estate at Lone Star, characterized the transaction as validation of the firm's ability to execute its broader investment strategy. Foulon stated that "applying our value-add strategic approach, we were able to continue to build on the Lofts at Reynolds Village momentum and enhance the overall profile of tenant mix," describing the property as a "unique asset in a growing market that needed a partner that saw what was possible through meaningful investment."
Lone Star Funds, founded in 1995 and based in Dallas, Texas, manages 25 private equity funds with approximately $95 billion in aggregate capital commitments. The firm invests globally across corporate equity, credit, real estate, and other financial assets. This disposition exemplifies the firm's disciplined portfolio management within its real estate investment strategy.
The transaction marks a significant milestone as the first disposition from a 42-asset portfolio that Lone Star acquired in September 2022. The sale was structured as a REIT stock transaction, though the parties did not disclose financial terms. Walker & Dunlop provided advisory services to Lone Star throughout the transaction.
Since acquisition, Lone Star implemented a value-add strategy focused on operational optimization and asset repositioning. The firm maintained strong occupancy levels across the community while driving significant growth in multifamily usage. Notably, Lone Star worked to enhance the property's retail offering by optimizing the tenant mix, which the firm indicated strengthened the asset's overall market appeal and value profile.
Jérôme Foulon, Global Head of Commercial Real Estate at Lone Star, characterized the transaction as validation of the firm's ability to execute its broader investment strategy. Foulon stated that "applying our value-add strategic approach, we were able to continue to build on the Lofts at Reynolds Village momentum and enhance the overall profile of tenant mix," describing the property as a "unique asset in a growing market that needed a partner that saw what was possible through meaningful investment."
Lone Star Funds, founded in 1995 and based in Dallas, Texas, manages 25 private equity funds with approximately $95 billion in aggregate capital commitments. The firm invests globally across corporate equity, credit, real estate, and other financial assets. This disposition exemplifies the firm's disciplined portfolio management within its real estate investment strategy.
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