U Commons sold to Texas firm for $31 million

U Commons, the 480-bed off-campus apartment complex near the University of Minnesota, was sold to American Campus Communities, Inc. Tuesday.

The Texas-based company plans to invest $1.8 million in capital upgrades to drive future rental rate and revenue growth, according to a company press release.

American Campus EVP of Investments William Talbot said “We are excited to be adding another Class A pedestrian asset serving a tier-one university to our best-in-class portfolio.”  The company also owns GrandMarc at Seven Corners on the West Bank.

Hennepin County assessed the property built in 2003 to be worth $26 million, the Minneapolis / St. Paul Business Journal reported.  The most recent sale was in 2004 when it went for $28.6 million.

American Campus owns 124 student housing properties with over 76,000 beds around the company.