American Campus Communities Acquires 480-Bed University of Commons
- Jul 09, 2012
Austin-based American Campus Communities Inc. has closed on the purchase of University Commons for $31 million. The 480-bed off-campus community, located in the East Bank area in Minneapolis, serves students attending the University of Minnesota.
The student housing property, just three blocks away from the UMN campus, was built in 2003 and features a community center with a business center, fitness center, game room and spa. American Campus plans to invest around $1.8 million in capital upgrades in order to stimulate future rental rate and revenue growth. The company estimates the year-one cap rate will be 6.6 percent nominal and 6.1 percent economic.
American Campus Communities Inc., which owns 124 student housing properties with around 76,100 beds, is the largest owner and manager of high-quality student housing communities in the country. The company’s management portfolio includes 152 properties with approximately 99,500 beds.
William Talbot, executive vice president of investments, said: “We are excited to be adding another Class A pedestrian asset serving a tier-one university to our best-in-class portfolio. The East Bank location and the proposed capital upgrades, coupled with ACC’s proprietary operating platform and management expertise, should drive future asset value.”
In other education-related news, Finance & Commerce reports Ridgewater College will undertake an upgrade project using the $13.9 million awarded by the 2012 state bonding bill. The project includes the remodeling of 70,000 square feet, the construction of a new campus entry, new heating and cooling systems, as well as the demolition of an obsolete, 8,500-square-foot administration building.
Photo Courtesy of: www.ucmn.com
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