San Marcos, Texas, December 4, 2025
San Marcos, Texas, will see the construction of The McLain, a new $89 million apartment complex near Texas State University. Set to begin in April 2026, the project aims to meet rising student housing demands as university enrollment is projected to increase significantly. The development will replace existing affordable housing units, prompting concerns about displacement among current residents. The project reflects a commitment to address community needs while fostering economic growth.
San Marcos, Texas: $89 Million Student Housing Project Set to Transform Local Community
A New Chapter for Student Housing
San Marcos, Texas – A new $89 million apartment complex, The McLain, is gearing up to replace two affordable housing properties located near Texas State University. Scheduled for construction beginning in April 2026 and completion by August 2028, this project aims to address the university’s increasing housing needs, which are becoming more urgent as enrollment numbers rise significantly.
The McLain will feature three apartment buildings encompassing 345,000 square feet along with parking and various amenities. As the project is privately funded, it reflects the ongoing entrepreneurial innovation in the area, emphasizing how local investments can foster economic growth through strategic real estate development.
Impact on Existing Affordable Housing
Importantly, the site of The McLain will replace the Lindsay Oaks and Elms apartments, both of which currently provide essential affordable housing options. To mitigate the impact on current residents, the San Marcos City Council has mandated that these tenants receive a minimum of 12 months’ notice to relocate. Once The McLain is completed, it must also reserve spaces for existing residents and provide comparable rent for up to 10 families or individuals over the age of 57, ensuring a degree of continuity in the community.
Addressing Housing Demand
The pressing need for student housing in San Marcos is underscored by Texas State University’s projections. The university anticipates a considerable increase in enrollment to a total of 50,000 students between its San Marcos and Round Rock campuses by 2033, significantly up from the 38,171 recorded in 2022. In response to this demand, the university is also investing in additional housing projects, including two 10-story dormitory towers and a boutique hotel downtown, signaling a robust plan to support its growing student population.
Developer Background
The McLain’s development is led by Matt Kenyon, the former president of Austin-based St. Croix Capital. The project carries a personal touch as it is named after Kenyon’s daughter, emphasizing a commitment not just to investment, but to building a legacy in the community.
Community Concerns
Conclusion
The McLain project represents a significant step forward in addressing San Marcos’ housing shortages, demonstrating how private investment can lead to innovative solutions for economic growth. However, it also serves as a reminder of the vital importance of preserving affordable housing options for current residents. As the community and university work together, a collaborative approach will be essential in ensuring that the needs of all stakeholders are met throughout this transformative project.
Frequently Asked Questions (FAQ)
What is The McLain project?
The McLain is a new $89 million apartment complex being developed near Texas State University in San Marcos, Texas. It will consist of three apartment buildings totaling 345,000 square feet, along with parking and amenities. Construction is expected to begin in April 2026 and be completed by August 2028.
What will happen to the existing affordable housing on the site?
The McLain will be built on the site of the Lindsay Oaks and Elms apartments, which currently provide affordable housing options. These existing complexes will be demolished to make way for the new development. The San Marcos City Council has mandated that current tenants receive a minimum of 12 months’ notice to relocate. Additionally, the McLain must reserve spots for existing residents once completed, and offer comparable rent to up to 10 families and individuals over the age of 57.
Why is Texas State University building more student housing?
Texas State University has been facing a longstanding shortage of student housing. The university anticipates a total enrollment of 50,000 students between its San Marcos and Round Rock campuses by 2033, up from 38,171 in 2022. In response, the university is planning additional housing projects, including two 10-story dormitory towers known as Hilltop Phase II and a $70 million, 130-room boutique hotel in downtown San Marcos.
Who is developing The McLain project?
The McLain is named after the developer’s daughter, Matt Kenyon, who is the former president of Austin-based St. Croix Capital. Kenyon did not respond to a request for comment regarding the project.
What concerns have been raised about the development?
During a San Marcos City Council meeting, students expressed concerns about the displacement of residents from the Lindsay Oaks and Elms apartments. Texas State graduate student Mariah Price, a resident of Lindsay Oaks, highlighted the impact on families and professionals who would be affected by the development.
Key Features of The McLain Project
| Feature | Description |
|---|---|
| Location | 420 North Street, San Marcos, Texas |
| Project Cost | $89 million |
| Size | 345,000 square feet |
| Components | Three apartment buildings, parking, amenities |
| Construction Timeline | April 2026 – August 2028 |
| Developer | Matt Kenyon, former president of St. Croix Capital |
| Impact on Existing Housing | Demolition of Lindsay Oaks and Elms apartments; 12 months’ notice for current tenants to relocate; reserved spots and comparable rent for existing residents |
| University Housing Plans | Anticipated enrollment of 50,000 students by 2033; additional projects include Hilltop Phase II dormitory towers and a $70 million boutique hotel in downtown San Marcos |
Deeper Dive: News & Info About This Topic
HERE Resources
Enforcement Uncertainty Looms as Texas ‘Bathroom Bill’ Approaches
Central Texas Community Foundation Initiates Flood Relief Fund Distribution
San Antonio Nonprofits Empower Individuals Through Recovery Support
San Antonio Unveils $6.5 Million Apartment Complex Near Pearl District
Villaret Commons: A New Beacon for San Antonio’s South Side
Significant Business Developments in Northeast San Antonio
A Devastating Fire at Villa RodrÃguez Apartments in San Antonio
Homebuyers Get an Edge in San Antonio’s Market Shift
California’s Proposition 50 Aims to Redraw Congressional Districts
San Antonio Ranked Among Best Large College Towns
Author: STAFF HERE SAN ANTONIO WRITER
The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
