San Marcos, Texas, December 4, 2025
A new $89 million apartment complex, named The McLain, is set to replace two affordable housing properties near Texas State University in San Marcos. This development will consist of three buildings totaling 345,000 square feet and is expected to begin construction in April, with completion slated for August 2028. The project also addresses community concerns by requiring provisions for displaced residents.
San Marcos, Texas
$89 Million Apartment Complex to Replace Affordable Housing Near Texas State University
A new $89 million apartment complex is set to replace two affordable housing properties near Texas State University in San Marcos. The development, named The McLain, will consist of three apartment buildings totaling 345,000 square feet, along with parking and amenities. Construction is expected to begin in April and be completed by August 2028. The project is privately funded and will be located at 420 North Street, directly across from the university campus.
Impact on Existing Affordable Housing
The McLain will demolish the current Lindsay Oaks and Elms apartments, which have provided affordable housing options for residents. In response to concerns from current tenants, the San Marcos City Council approved a conditional use permit requiring that existing residents receive a minimum of 12 months’ notice to relocate. Additionally, the new complex must reserve spots for current residents once built, and offer comparable rent to up to 10 families and individuals over the age of 57 from the affordable housing properties.
Developer Background and University Housing Needs
The developer behind The McLain is Matt Kenyon, former president of Austin-based St. Croix Capital. Texas State University has a longstanding shortage of student housing. In May, the university projected a total enrollment of 50,000 students between its San Marcos and Round Rock campuses by 2033, up from 38,171 in 2022. To address this need, the university is also planning two 10-story dormitory towers, known as Hilltop Phase II, and a $70 million, 130-room boutique hotel in downtown San Marcos.
Community Concerns and Responses
Students have expressed concerns about the displacement of residents due to the development. Mariah Price, a Texas State graduate student residing at Lindsay Oaks, highlighted the impact on families and professionals who will be affected by the loss of affordable housing. The city council’s approval of the development includes provisions aimed at mitigating these concerns, such as offering comparable rent to displaced residents and reserving spots for current tenants in the new complex.
Conclusion
The McLain development represents a significant investment in student housing near Texas State University. While it aims to address the university’s housing shortage, it also raises important questions about the availability of affordable housing in the area and the impact on current residents. The project’s success will depend on balancing the needs of the university and the community, ensuring that displaced residents are adequately supported and that the development contributes positively to the San Marcos community.
FAQ
- What is The McLain development?
- The McLain is a new $89 million apartment complex consisting of three buildings totaling 345,000 square feet, located at 420 North Street in San Marcos, Texas, across from Texas State University. Construction is expected to begin in April and be completed by August 2028. The project is privately funded.
- What will happen to the existing affordable housing?
- The McLain will replace the current Lindsay Oaks and Elms apartments, which have provided affordable housing options for residents. The San Marcos City Council approved a conditional use permit requiring that existing residents receive a minimum of 12 months’ notice to relocate. Additionally, the new complex must reserve spots for current residents once built, and offer comparable rent to up to 10 families and individuals over the age of 57 from the affordable housing properties.
- Who is the developer behind The McLain?
- The developer is Matt Kenyon, former president of Austin-based St. Croix Capital.
- What are the housing needs at Texas State University?
- Texas State University has a longstanding shortage of student housing. In May, the university projected a total enrollment of 50,000 students between its San Marcos and Round Rock campuses by 2033, up from 38,171 in 2022. To address this need, the university is also planning two 10-story dormitory towers, known as Hilltop Phase II, and a $70 million, 130-room boutique hotel in downtown San Marcos.
- What concerns have been raised about the development?
- Students have expressed concerns about the displacement of residents due to the development. Mariah Price, a Texas State graduate student residing at Lindsay Oaks, highlighted the impact on families and professionals who will be affected by the loss of affordable housing. The city council’s approval of the development includes provisions aimed at mitigating these concerns, such as offering comparable rent to displaced residents and reserving spots for current tenants in the new complex.
Key Features of The McLain Development
| Feature | Description |
|---|---|
| Project Name | The McLain |
| Location | 420 North Street, San Marcos, Texas |
| Project Cost | $89 million |
| Size | 345,000 square feet |
| Number of Buildings | 3 |
| Construction Start | April 2026 |
| Completion Date | August 2028 |
| Developer | Matt Kenyon |
| Current Affordable Housing Replaced | Lindsay Oaks and Elms apartments |
| University Enrollment Projection by 2033 | 50,000 students |
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