MINNEAPOLIS—American Campus Communities Inc., based in Austin, Texas, has acquired University Commons, a 480-bed, off-campus community serving University of Minnesota students, for a purchase price of $31 million.

University Commons is located in the East Bank area of Minneapolis, three blocks from the UMN campus. Constructed in 2003, the property 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 has a total enrollment exceeding 52,000 students. The school houses 6,500 total students on campus with roughly 85 percent of beds as traditional or suite-style residence halls.