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 on August 18, 2025.
- • The transaction represents the first disposition from Lone Star Real Estate Fund VI's 42-asset portfolio acquired in September 2022, structured as a REIT stock sale with undisclosed financial terms.
- • Lone Star implemented a value-add strategy during its three-year hold, driving multifamily usage growth, maintaining strong occupancy levels, and repositioning the retail tenant mix to enhance overall asset value and market appeal.
- • Walker & Dunlop served as transaction advisors to Lone Star, with Michael Saclarides representing the seller in the transaction.
- • The sale reflects Lone Star's capital deployment strategy and demonstrates early portfolio monetization from a larger 42-property acquisition, positioning Continental Realty to expand its North Carolina multifamily platform.
Summary
Lone Star Funds announced the successful completion of its sale of the Lofts at Reynolds Village, a mixed-use property comprising 201 residential units and approximately 63,000 square feet of ground-floor retail space in Asheville, North Carolina. Continental Realty Corporation, a Baltimore-based commercial real estate firm, acquired the asset through a REIT stock transaction structure. The financial terms of the deal were not disclosed.
This disposition marks the first capital return from Lone Star Real Estate Fund VI's broader 42-asset portfolio, which the firm acquired in September 2022. The three-year hold period demonstrates Lone Star's value-creation execution, as the firm focused on operational improvements and strategic repositioning during its ownership tenure. According to Jérôme Foulon, Global Head of Commercial Real Estate at Lone Star, the sale "reflects our ability to create long-term value through the execution of our broader investment strategy." The firm emphasized its value-add approach, noting that it drove significant growth in multifamily usage, maintained strong occupancy levels, and optimized the property's retail tenant mix to enhance market positioning and overall asset profile.
Asheville's position as a growing market made the property an attractive platform for Continental Realty Corporation's continued expansion in the region. The transaction was facilitated by Walker & Dunlop, underscoring institutional-grade advisory support for the disposition process. This early exit signals Lone Star's confidence in market conditions and its ability to execute value creation within compressed timeframes, relevant to institutional investors evaluating the firm's capital deployment and return generation capabilities across its real estate platforms.
This disposition marks the first capital return from Lone Star Real Estate Fund VI's broader 42-asset portfolio, which the firm acquired in September 2022. The three-year hold period demonstrates Lone Star's value-creation execution, as the firm focused on operational improvements and strategic repositioning during its ownership tenure. According to Jérôme Foulon, Global Head of Commercial Real Estate at Lone Star, the sale "reflects our ability to create long-term value through the execution of our broader investment strategy." The firm emphasized its value-add approach, noting that it drove significant growth in multifamily usage, maintained strong occupancy levels, and optimized the property's retail tenant mix to enhance market positioning and overall asset profile.
Asheville's position as a growing market made the property an attractive platform for Continental Realty Corporation's continued expansion in the region. The transaction was facilitated by Walker & Dunlop, underscoring institutional-grade advisory support for the disposition process. This early exit signals Lone Star's confidence in market conditions and its ability to execute value creation within compressed timeframes, relevant to institutional investors evaluating the firm's capital deployment and return generation capabilities across its real estate platforms.
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