Elevate Development Partners has secured a $116 million loan to support its 759-bed student project in San Marcos, Texas.
S3 Capital originated the acquisition and construction financing, with Walker & Dunlop Capital Markets Institutional Advisory arranging the deal.
With the development near Texas State University (TSU), the plans are coming together to meet the area's growing demand. According to S3 Capital, TSU enrolled 44,596 students in 2025, representing a 9.6 percent increase year-over-year. Also, this was the fifth straight year that the campus saw record growth.
The deal marks S3 Capital's first-ever student housing deal.
"Capitalizing on supply-demand imbalances has always been our focus, and we see student housing as a natural expansion of that same approach. Demand is structurally captive, and many universities are growing enrollment faster than they can add beds," Steven Jemal, managing director of origination at S3 Capital, said in a statement.
"That's exactly what's playing out at Texas State, and we're excited about the growing pipeline of similar deals we have in the works."
An added bonus is the recent athletic and academic investment at TSU, headlined by the new $137 million STEM facility development that's set to deliver in December 2026. Plus, the university is implementing a $42 million upgrade of its football stadium's south end zone, following the team's move to the PAC-12 athletic conference.
Located near the campus is The Square in downtown San Marcos and the Ingram School of Engineering and McCoy College of Business.
Some more specific planned features of Elevate Development's 280,124 rentable square foot project include amenities such as a yoga and wellness room, a fitness center, conference rooms, a pool, study lounges, a package room, fully furnished units and a social lounge.
While this is S3 Capital's first in student housing, it's been active in high-growth markets like Texas. The real estate lender said that it recently originated a $46.5 million development loan in Denton. Also, S3 Capital noted that the focus going forward will be on identifying opportunities across various residential asset classes and supporting developments nationwide.
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