A major student housing development near Texas State University is moving forward after Austin-based Elevate Development Partners secured $116 million in acquisition and construction financing for the project in San Marcos, Texas.
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The financing was provided by S3 Capital in what marks the lender’s first student housing transaction. The deal was arranged by Walker & Dunlop and will support the development of a 260-unit, 759-bed off-campus housing community adjacent to Texas State University.
Construction on the project will be led by Flintco, while The Preiss Co. has been selected to manage the property once completed. The development is expected to open for the 2028-2029 academic year and will add more than 280,000 square feet of net rentable space to the growing student housing market in Central Texas.
The project site is located along Interstate 35 in San Marcos, approximately 30 miles south of Austin and about 38 miles from Austin-Bergstrom International Airport.
The financing comes as demand for student housing continues to rise nationwide, particularly at large public universities experiencing enrollment growth and limited housing supply.
“Student housing sits at the intersection of durable demand and limited new supply, particularly at large public universities where enrollment growth continues to outpace available beds,” Steven Jemal, managing director of origination at S3 Capital, told Multi-Housing News. “At Texas State, those dynamics are especially pronounced, which creates a compelling backdrop for well-located, purpose-built development. As we look ahead, we see this as a scalable opportunity to apply our lending strategy in markets with similar fundamentals.”
Texas State University reported record enrollment for the fall 2025 semester, reaching 44,596 students, a 9.6% increase year over year. The growth reflects broader trends across the student housing sector, where preleasing activity has remained strong despite increasing competition among developers.
According to a recent Yardi Matrix report, national preleasing for the 2026-2027 academic year reached 58.6% in February, up from 54.4% during the same period a year earlier.
The new student housing community will feature fully furnished apartments along with a range of amenities designed to appeal to modern student renters. Planned amenities include study lounges, a social lounge, a mail and package room, a swimming pool, a fitness center and a yoga room.
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The project also aligns with broader expansion efforts underway at Texas State University. The university is currently advancing several major capital projects, including the $280 million Hilltop Housing Phase II development, which will add 1,504 beds across two 10-story residence halls.
Additional campus projects include a $137 million STEM facility scheduled for completion in December 2026 and a $42 million stadium renovation.
Walker & Dunlop’s Capital Markets Institutional Advisory team arranged the financing transaction. The team included Managing Director Sean Reimer along with Senior Managing Directors Aaron Appel, Keith Kurland, Jonathan Schwartz, Adam Schwartz and Dustin Stolly.
The latest project reflects continued investor confidence in student housing as developers and lenders target university markets with strong enrollment growth and constrained housing inventories.
Originally reported by Mikayla Sciortino in Multi Housing News.
