AUSTIN, TX - American Campus Communities, Inc., the largest owner, manager and developer of high-quality student housing properties in the U.S., 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.
The University of Minnesota, a Big Ten Conference member and tier-one university with a total enrollment of over 52,000 students, houses 6,500 total students on campus with roughly 85 percent of beds as traditional or suite style residence halls. American Campus currently owns another off-campus community in the UMN market on the West Bank, GrandMarc at Seven Corners, which serves a different student demographic.
We are excited to be adding another Class A pedestrian asset serving a tier-one university to our best-in-class portfolio, said William Talbot, American Campus EVP Investments. The East Bank location and the proposed capital upgrades coupled with ACC’s proprietary operating platform and management expertise should drive future asset value.
American Campus Communities, Inc. is the largest developer, owner and manager of high-quality student housing communities in the United States. The company is a fully integrated, self-managed and self-administered equity real estate investment trust (REIT) with expertise in the design, finance, development, construction management, and operational management of student housing properties. American Campus Communities owns 124 student housing properties containing approximately 76,100 beds. Including its owned and third-party managed properties, ACC's total managed portfolio consists of 152 properties with approximately 99,500 beds.
Source: American Campus Communities / #Student #Housing