Minneapolis — American Campus Communities has acquired University Commons, a 480-bed off-campus community serving students attending the University of Minnesota, for $31 million.

University Commons is in the East Bank area, which is three blocks from the UMN campus. The 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.

American Campus Communities plans to invest $1.8 million in capital upgrades to drive future rental rate and revenue growth. The projected year-one cap rate, which includes the $1.8 million, is 6.6 percent nominal and 6.1 percent economic.

American Campus Communities owns GrandMarc at Seven Corners, another off-campus housing property in the UMN market in the West Bank area.