Lone Star begins Home Properties asset sales

The private equity firm is selling two Long Island apartment complexes as it begins offloading some of the newly acquired company’s properties.

Lone Star Funds, the Dallas-based private equity firm, has put two Long Island apartment properties up for sale.

The firm is starting to sell off some assets from its October acquisition of Home Properties, a formerly publicly-traded real estate investment trust based in Rochester, NY. Lone Star gained 41,917 apartment units in 121 communities, primarily in the East Coast, from the deal, according to Bloomberg.

The two properties in New York’s Long Island suburbs are expected to fetch about $260 million, and can be sold individually or together. The eventual sale will likely be Long Island’s largest multifamily transaction in years. The last Long Island multifamily property to trade for more than $100 million was in 2012, and the biggest apartment sale this year was a $24.5 million sale of 176 units in June, according to data site Real Capital Analytics.

The two complexes up for sale total 1,090 units and are 95 percent occupied. The larger of the two properties is the 656-unit Devonshire Hills. The complex, located at 1710 Devonshire Road in Hauppauge, NY, is about 50 miles east of Manhattan and was constructed as two separate buildings, one built in 1971 and the other in 1968. Devonshire Hills has studio, one and two-bedroom apartments, with amenities including two swimming pools, a fitness center and basketball and tennis courts.

The other property is the 434-unit Hawthorne Court, located at 211 Hawthorne Avenue in Central Islip, NY. That property was built in 1967 and has similar amenities to the other apartment complex.

Lone Star declined to comment.