Michaels Closes $61 Million Workforce Housing Deal in the Texas’s ‘Innovation Corridor’

The Michaels Organization has successfully closed on $61 million in financing for Mission Trail at El Camino Real, a new mixed-income housing community in San Marcos, Texas, that will serve the city’s growing workforce.

Situated between Austin and San Antonio, the greater San Marcos region has attracted an impressive number of new businesses over the past decade and is home to one of the country’s fastest-growing universities, Texas State University. The Mission Trail development will be located in Hays County, the fourth fastest growing county in the country.

The new Mission Trail at El Camino Real will be built on 30 acres of land located near the intersection of Highway 123 and Clovis Barker Road. Designed by Austin-based Kelly Grossman Architects, the community will comprise 15 garden-style buildings, offering a total of 352 rental apartment homes. Layouts for the spacious and energy-efficient apartments will range from one- to four-bedrooms, and community amenities will include a Clubhouse with pool, fitness center and business center. The community’s substantial green space will include gathering places, walking paths, and two playgrounds.

The majority of apartments will be reserved for households earning 60 percent or less of the area median income, while 10 percent of the units will be reserved for individuals and families earning less than 140 percent of the area median income. The community will also offer 35 apartments without any income restrictions.

Financing for the development includes $43 million in tax-exempt bond financing issued by Capital Area Housing Finance Corporation and $15.5 million in equity raised through the sale of Federal Low Income Housing Tax Credits (LIHTC) allocated by the Texas Department of Housing and Community Affairs. U.S. Bank is providing the construction loan and is also the LIHTC investor. Berkadia is providing permanent financing through Freddie Mac.

A groundbreaking ceremony is planned for this Spring, with pre-leasing beginning in the fall.

About the Michaels Organization: The Michaels Organization is a national leader in residential real estate offering full-service capabilities in development, property management, construction, and finance. Serving 145,000 residents in more than 400 communities nationwide, Michaels is committed to crafting housing solutions that jump start education, civic engagement, and neighborhood prosperity and to creating Communities That Lift Lives.