American Campus Acquires Core Pedestrian Asset Serving the University of Minnesota in Minneapolis for $31.0M

American Campus Communities, Inc. ACC announced today the acquisition of University Commons, a 480-bed off-campus community serving students attending the University of Minnesota, for a purchase price of $31.0 million. University Commons is located in the highly desirable East Bank area in Minneapolis and three blocks from the UMN campus. The student housing property was built in 2003 and features a community center with a fitness center, business center, game room with pool tables and gaming consoles, and a spa. The fully furnished units include a full kitchen, washer/dryer and hardwood flooring. American Campus anticipates investing $1.8 million in capital upgrades to drive future rental rate and revenue growth. The projected year-one cap rate (inclusive of $1.8 million in capital) is 6.6 percent nominal and 6.1 percent economic.