San Marcos Student Housing I & II

Aerial View of Downtown San Marcos, TX

Executive Summary

San Marcos is home to Texas State University with a population of approximately 35,000 students. The city is one of the fastest-growing cities in the nation and is expected to increase from 55,000 to 85,000 non-student residents over the next 10 years. Townbridge Capital has identified and secured an opportunity to purchase two properties as a package deal. Historically, student housing facilitates a 15% higher rate in rent over traditional multi-family units. The two properties are both in close proximity to the campus and town center. Properties within walking distance to the campus and town center generally see an increase of 10% above other student housing rates. Townbridge has identified an opportunity for capturing competitive rents that support a strong investment.

Market Data

The average market-rate student rent in San Marcos is right around $1.30 per square foot. For landlords who successfully pull in students, proximity to the school is key. Average rents within a mile of campus are more than 10% higher than the submarket average. This disparity is wider in three-bedrooms, where those closer to campus command a 15% premium over the submarket average. This makes sense given the trend for students to share larger apartments.

San Marcos I Investment Overview

San Marcos Student Housing Downtown

165 S Guadalupe St

The property is located two blocks from the central town square, where all the restaurants and bars are located. Texas State University is a 4 block walking distance from the building. All 10 units are pre-leased beginning in May of every year for a July/August turnover and historically has 100% occupancy. Townbridge sees an opportunity for rent growth through a few value-add strategies. By utilizing the PACE program, energy-efficient improvements can be financed and attached to the property with payments through property taxes. The addition of a solar-array and LED lighting can facilitate low monthly electrical utilities while increasing rent for an “all-inclusive” lease. The building is also poised to create an iconic location in town through revolving wall murals for “instagrammable” moments.

165 Guadalupe St, San Marcos, TX

San Marcos II Investment Overview

Aerial Map View of Location RR12 San Marcos Apartment Development

1511 Ranch Road 12

Townbridge was able to secure this property at a discounted sales price due to a package offer along with the 165 S. Guadalupe property. There is currently a large single family residence and is historically leased to college students. The property is 2.97 acres and zoned MF-12 allowing for a new development of 35 units. Townbridge will design and develop a new multi-family student housing community along the Texas State University bus route. The development will include similar strategies to capture higher rent while speaking to the needs of a younger student market. This property is a desirable location for students as it is currently on the bus route for the university.

Architectural Rendering of Student Housing

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