Private equity firm Lone Star Funds is taking Home Properties private for approximately $4.36 billion.
Dallas' Lone Star will pay $75.23 per Home Properties share, a 3 percent premium to the real estate investment trust's Friday closing price of $72.73.
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The companies put the total value of the deal at about $7.6 billion including debt.
Home Properties, based in Rochester, New York, may seek third-party proposals over the next 30 days.
The transaction is targeted to close in the fourth quarter. It still needs approval from Home Properties shareholders.
Separately, Home Properties Inc. is exchanging a portfolio of up to six properties with UDR Inc. for a combination of cash and newly issued units of a new subsidiary of UDR.