American Campus Communities, Inc. ( ACC - Snapshot Report ) , a real estate investment trust (REIT), recently acquired a student housing community named The Block, located in close proximity to the University of Texas in Austin, for an undisclosed amount.

Built in 2007-2008, The Block is a six-community off-campus property consisting of 1,555 beds and is currently 97% occupied. Each of the six communities features a space for car parking, a rooftop lounge, a fitness center and other amenities. There is also a centralized community center which includes a game room, business center and other entertainment facilities.

The Block is the most recent in a string of acquisitions and new projects undertaken by American Campus in the West Campus submarket of Austin. Including the present purchase American Campus will own approximately 4,270 student housing beds in the region

The acquisition is in line with the company’s strategy to acquire class A properties in the West Campus submarket which otherwise has high barriers to entry. The development further reinforces American Campus’ policy of investing in the high-growth student housing industry as it focuses on providing premium quality student housing facilities.

Although American Campus was initially founded in Austin in 1993, it has not owned or managed any property in the region since 2005. The current acqusition, therefore, gives an opportunity to the company to re-enter its hometown.

American Campus is the largest developer, owner and manager of premium-quality student housing communities in the United States. The company primarily engages in development, ownership and management of high-quality student housing communities. The company has grown over the years and presently manages 154 properties in 85 university markets with a market capitalization of $5.6 billion.

American Campus currently has Zacks #3 Rank, which translates into a short-term Hold rating. We also have a long-term Neutral recommendation on the stock. One of its competitors, Education Realty Trust, Inc. ( EDR - Snapshot Report ) also holds a Zacks #3 Rank.