Mixed-Income Development Lands $61M Financing
- Feb 21, 2019
The Michaels Org. has closed on $61 million in financing for Mission Trail at El Camino Real, a new mixed-income community in San Marcos, Texas, which houses Texas State University. The development, designed to serve the city’s workforce, will break ground this spring and preleasing is anticipated to begin in fall.
Financing for the community includes $43 million in tax-exempt bond financing issued by Capital Area Housing Finance Corp. and $15.5 million in equity raised through the sale of federal low-income housing tax credits allocated by the Texas Department of Housing and Community Affairs. U.S. Bank is behind the construction loan and is also the LIHTC investor. Berkadia is providing permanent financing through Freddie Mac.
Mission Trail at El Camino Real will span across 30 acres in the Hays County, the fourth fastest growing county in the country according to the U.S. Census Bureau. The project will be located at 2875 State Highway 123, near the intersection of Highway 123 and Clovis Baker Road, and will consist of 15 garden-style buildings totaling 352 units with one- to four-bedroom floorplans. Community amenities will include a clubhouse with swimming pool, fitness center and business center, while the green spaces will include two playgrounds, gathering places and walking paths.
The bulk of the units will be reserved for households earning 60 percent or less of the area median income and 10 percent of the units will be reserved for those earning less than 40 percent of the area median income. Mission Trail will also offer 35 apartments without income restrictions.
“Michaels’ development model, which includes their continued ownership and management, ensures well-maintained, well-located and beautifully amenitized housing is delivered to our working families,” Laura Dupont, senior vice president of development and operations at Corridor Title & chair of the City of San Marcos Workforce Housing Taskforce, said in a prepared statement. “As chair of the Workforce Housing Taskforce, I fully understand the severe need for affordable housing in San Marcos and feel this project is a great step in the right direction for our citizens.”
Image courtesy of The Michaels Org.