It will run UE4 fine and sounds like a good value for the money.
I looked through the options and you should really get the “250GB M.2 Solid State” option for $39 (found under M.2 SSD Drive -> M.2 Slot 1). Having the OS and your UE4 on an SSD will make the system much more responsive.
If you dont have that much extra money, remove the ordinary HDD to save $30. 250 GB should be enough to start with and you can easily buy and install one later. (If you get two drives, make sure you get the OS on the SSD!)