A long-disputed student housing project across from Texas State University just took a big step toward becoming a reality. The McLain, a three-building, $88.5 million complex, is now moving out of the concept phase and toward construction, according to new state filings. The plan would wipe out two older, lower-cost apartment communities and replace them with roughly 345,000 square feet of multifamily housing, structured parking, and student-focused amenities. Backers say it will cluster students near downtown. Critics say it could speed up the push-out of longtime San Marcos residents.
State filings push project forward
Paperwork filed with the Texas Department of Licensing and Regulation on Dec. 1, 2025, lays out detailed plans for the development, including a project budget, site design, and a tentative schedule that shows construction starting April 1, 2026, and finishing by August 2028. The documents describe a three-building project at 420 North Street covering about 345,000 square feet with structured parking and tenant amenities. Those specifics were highlighted in a recent report from MySA.
Council approval came with conditions
San Marcos City Council cleared the way for higher-density student housing at Lindsey and North streets in April 2024 when it approved rezoning and a conditional use permit. That 6–1 vote came with a list of strings attached: at least 12 months of relocation notice for current tenants, broader eligibility for families to receive comparable rents in the new development, a required height reduction on one of the planned buildings, and a seven-year restriction that prevents the property from being sold to a non-taxpaying entity. Community Impact reported on the vote and the full list of amendments.
Demolitions will remove lower-cost options
The McLain would not be rising on empty land. Under the plan, the Lindsey Oaks and The Elms complexes would be demolished to make room for the new student housing, according to the San Antonio Express-News. One-bedroom units at those properties have recently been listed for under $1,000 a month, per Realtor.com. That price point has fueled anxiety among families, graduate students, and lower-income renters who rely on nearby, relatively affordable apartments.
Developer and backers sell walkable benefits
Developer Matthew Kenyon and project supporters argue the McLain will put more students within walking distance of Texas State and the downtown core, concentrating spending power for local shops and restaurants. Kenyon has said the complex is intended to provide a walkable experience for students and an economic lift for surrounding businesses, according to The University Star. Even so, student organizers and tenant advocates told council members they worry the project prioritizes rent-by-the-bed, short-term student leases over the stability of residents who have called the area home for years.
Timeline and what comes next
With the TDLR filings now on the books, the McLain is shifting from political fight to bureaucratic grind. The plans are still subject to change, and the project cannot move forward until building permits clear the city review. MySA notes that the developer lists an April 1, 2026, construction start and an August 2028 completion date, and that city staff and the developer were being asked for comment at the time of the report. In the meantime, neighbors, tenants, and city officials are expected to keep a close eye on permit applications and demolition timelines.
Questions about data and the developer
The project has not only raised concerns about affordability. Local coverage has also pointed to questions surrounding the developer’s corporate filings and the market data used to sell the project to the city, including apparent inconsistencies in occupancy and parking figures submitted during the approval process. The University Star has detailed those issues and residents' calls for clearer answers about who will realistically be able to afford the new units and what tenant protections will look like once construction begins. Expect more public records requests and council check-ins as the McLain moves deeper into the permitting phase.
