Helu Development has started construction on The Entrada at San Marcos, a workforce housing community in San Marcos, Texas that when completed in the first quarter of 2026 will deliver 336 apartment homes affordable to families and working professionals earning less than 80% of the area median income (“AMI”) in the Austin/Round Rock metropolitan area.
The development is being financed with a 40-year HUD 221(d)(4) loan, which facilitates new construction of housing for moderate-income families, originated by Regions Bank. The financing package also includes a preferred equity investment provided by American South Capital Partners (“ASCP”) a joint venture of SDS Capital Group and Vintage Realty Company. The preferred equity was arranged by Francisco Herrera of Peak 15 Capital.
ASCP made the investment through its recently closed $174 million American South Real Estate Fund II, which provides equity financing for real estate sponsors of affordable housing projects located in 10 Southern states (Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee and Texas). ASCP, through its family of funds, have to-date collectively committed more than $176 million to 26 projects, financing more than 7,025 housing units – 82% of them affordable to families at less than 80% of the AMI.
It will feature a mix of one-, two- and three-bedroom units housed in six, three-story residential buildings. Community amenities of The Entrada at San Marcos will include a clubhouse with 24-hour fitness center, pickleball court, resort-style community pool and spa, fire pit and grilling area, and children’s playground.
San Marcos, 30 miles southwest of downtown Austin, is a popular destination for renters who have been priced out of the state capitol. According to Harvard University’s Joint Center for Housing Studies, approximately half of the renters in the Austin Metro are considered “rent burdened” spending 30% or more of their annual income on housing and utilities. The study also showed that 25% of Austin renters are “severely rent burdened” paying 50% or more of the of their income on rent.
“Given its relative affordability and proximity to the two main employment hubs of Austin and San Antonio, San Marcos has experienced rapid population growth increasing approximately 18% since 2020,” said Jay Minnick, President and CEO of Helu Development. “There is a significant need to develop new quality housing that remains affordable to the workforce and American South Capital Partners’ investment ensured we will keep Entrada rents under 80% of the AMI.”
“The South has a shortage of over 2 million affordable housing units, and, most of the rental housing built in the United States is out of the reach of the majority of renters,” underscored Deborah La Franchi, ASCP Managing Partner and SDS Capital Group CEO. “The Entrada is an example of what can be done to build quality housing that doesn’t place a financial burden on renters.”
“It’s important that we invest with like-minded people who have a similar vision for how we look at the world in terms of rental housing in this country,” said David Alexander, ASCP Managing Partner and CEO of Vintage Realty Company. “Our goals are truly aligned, and we look forward to our new relationship with Helu.”
