618 EL RIO STREET | SAN MARCOS, TX 78666

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Executive Summary

Berkadia’s Multifamily Investment Sales Team is pleased to announce the exclusive listing of Emerson at Trace, a 326-unit Class-A townhome style community located in the recently constructed TRACE Master Planned Community in rapidly expanding San Marcos, TX. Built in 2023 on 16.38 acres, Emerson at Trace offers an investor and residents a low density of 19.9 units per acre which makes the community operate and feel like a townhome style development, providing a competitive advantage amongst other communities in the area.

The Property features visibility from Interstate 35 and effectively serves as one of the entry anchors into TRACE. The convenient location along El Rio Street offers a secluded entrance to Emerson at Trace while providing quick access to Interstate-35 (I-35), the major North-South route connecting Austin to San Antonio. Additionally, TRACE amenities include Nacogdoches Park, Tejas Park, up to three miles of trails, a community elementary school, and future walkable retail along the I-35 frontage road. Given its strategic location along I-35, Emerson at TRACE is situated near several of San Marcos’ key economic drivers including the Central Texas Medical Center, Christus Santa Rosa Hospital – San Marcos, Amazon’s SAT2 and SAT6 Distribution Facilities, HEB Distribution Facility, Walmart Distribution Facility, Sam’s Club Distribution Facility, and Texas State University all within a 15-minute drive. Residents also have seamless access to a vast retail offering that includes the popular Tanger and San Marcos Premium Outlets, Stone Creek Crossing, New Braunfels Town Center, and Red Oak Village which provide access to hundreds of retail and restaurant offerings within a 10-minute drive.

Emerson at Trace offers investors a premier, recently built community surrounded by major economic drivers in one of the fastest-growing cities and counties in the Austin MSA. San Marcos and Hays County, along with nearby New Braunfels and Comal County, continue to benefit from exceptional growth along the southern I-35 corridor, positioned roughly equidistant between Austin and San Antonio. With the recent wave of new supply now largely behind the market and leasing activity outpacing deliveries for the first time since 2022, Emerson at Trace is well positioned to capitalize on tightening fundamentals, as its superior construction quality and differentiated townhome-style product support an attractive runway for long-term asset performance.

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Investment Highlights

Emerson at Trace is a truly one-of-a-kind rental offering in San Marcos, delivering a differentiated townhome-style living experience with rare features for this submarket, including direct-access garages, first-floor entries, and private pet yards. Emerson’s construction quality and elevated amenity package position the community within a unique product category that resonates strongly with today’s renter, supported by strong resident retention and elevated leasing performance. Beyond near-term rent and absorption advantages, the structural integrity of the Property and its integration within the TRACE Master-Planned Community create durable long-term value for an investor, while supporting overall asset performance over time.
Add bullets of the following within this section:

– Direct Access Garages*
– Private Pet Yards with Lawn Care Available*
– First Floor Direct Access on All Homes
– Two-Story, Low-Density Construction

*In select units

Emerson at Trace showcases premier amenities that cater to every desire of the modern renter, featuring a contemporary clubhouse with expansive ceilings and an open-concept design accented by a light, airy color palette that creates an inviting atmosphere for residents to congregate, play billiards, or watch TV with friends and family. Additional community amenities include a business center with conference room, an indoor private entertainment studio with couch seating and TV, a meticulously crafted outdoor patio with bar seating, fireplace, shuffleboard, flat screen TV, and retractable screens for flexible indoor-outdoor use, as well as a 24/7 fitness facility equipped with free weights, Matrix lifting machines, cardio equipment, and a yoga/barre room. The resort-style pool offers cabanas and ample seating both in and out of the water, complemented by a beautifully designed picnic area with stainless steel grill stations, a bark park, and a large dog grooming station with a dog wash and multiple grooming tables. Apartment interiors continue the high-end feel with sleek L-shaped kitchens featuring quartz countertops, designer cabinetry with circular brushed nickel hardware, tile backsplashes, and chrome gooseneck faucets, alongside nine-foot ceilings on the first floor and vaulted ceilings on the top floor, stainless steel appliance packages, walk-in closets, and in-unit full size washers and dryers.

Emerson at Trace is in one of San Marcos’s newest master planned communities, TRACE. TRACE is an innovative 420-acre master planned community that provides a hub for residents to work, shop and play. The single-family homes are built by notable developers such as Pacesetter Homes, Terrata Homes and Chesmar Homes, with properties on the market up to $423K. The community also features an onsite elementary school that is a mere 10-minute walk and four parks for residents to utilize. TRACE’s master-planned design offers a distinctive collection of amenities that not only set it apart from most options in the San Marcos MSA, but also foster a genuine sense of community and an everyday living experience residents can’t easily find elsewhere.

Situated on Van Horn Trace Road with immediate frontage to I-35, Emerson at Trace offers residents swift access to central San Marcos, New Braunfels, and other major metropolitan areas and economic hubs along the I-35 Corridor from Austin to San Antonio. Additionally, many of the region’s most notable retailers and restaurants are within a 15-minute drive. Highlights include the San Marcos and Tanger Outlets, featuring over 220 prominent retailers, Downtown San Marcos with its 45+ bars and restaurants, and Downtown New Braunfels. Other notable destinations include Stone Creek Crossing and Red Oak Village. This proximity to dynamic retail centers and vibrant downtown areas is a significant selling point for prospective tenants.

Texas State University has announced its transition from the Sun Belt Conference to the Pac-12 Conference, effective July 1, 2026. This strategic move is designed to boost the university’s national profile and enhance the visibility of San Marcos, Texas. By joining the historic Pac-12, Texas State will gain increased exposure and opportunities in both academics and athletics. With current enrollment exceeding 40,000, Texas State aims to reach 50,000 students by 2030. This transition aligns with the university’s strategic plan to achieve R1 Carnegie research university status by 2027.

The move includes substantial investments in athletics infrastructure, such as a $37 million football training facility. The university anticipates up to a 20% increase in athletics revenue, supported by the Pac-12’s media rights deal, which extends through 2031. San Marcos is expected to experience economic growth through increased tourism and national exposure, reflecting Texas State’s commitment to advancing its academic and athletic programs.

H-E-B is set to open its third location in San Marcos, a state-of-the-art 114,000-squarefoot store strategically positioned along I-35 and McCarty Lane, only a 5-minute drive from the property. Scheduled to open in October 2026, this facility will feature pharmacy pickup spaces, a dedicated curbside area with parking, and a fuel station. It will also house the first True Texas BBQ restaurant in San Marcos. City officials have highlighted the store’s significance in providing a “much-needed” grocery option to the east side of I-35, supporting the rapidly expanding community. The new location is expected to create substantial employment opportunities, with 212 full-time and 238 part-time positions.

The southern part of San Marcos has increasingly become the city’s core economic engine, aside from Texas State University. This area hosts multiple major distribution facilities, large hospitals, a regional conference center, and significant hotels and retail centers, all of which provide employment to thousands of San Marcos residents. Within a 10-mile radius, key employers include the Amazon SAT-2 and SAT-6 distribution facilities with 5,000 employees, Texas State University with 3,040 employees, the San Marcos Outlets with 3,140 employees, the Central Texas Medical Center with 1,270 employees, and the HEB Distribution Facility with 500 employees. The presence of these major employers underscores the area’s desirability and reflects the ongoing growth in the region.

Emerson at Trace is ideally situated equidistant between San Marcos and New Braunfels, both within a 15-minute drive. These cities are at the epicenter of significant in-migration and population growth in the Central Texas region. Within the next 5 years, Hays County’s population is projected to grow by 11.9%, outpacing the Austin Metro.

Fueled by rapid population growth, relative housing affordability, and a deepening labor pool, San Marcos has become a focal point for capital flowing into Central Texas—emerging as a hotbed for industrial, retail, data center, and mixed-use investment. Currently there is over $2 billion+ in capital investments being made into the region totaling 15 million+ square feet of mixed use, retail, and industrial development. The current developments plan to add an additional 3,000+ jobs to the local labor market.

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Contact us

Investment Sales

Kelly Witherspoon
Senior Managing Director
512.226.8706
[email protected]

Justin Cole
Managing Director
512.226.8711
[email protected]

Adam Sumrall
Director
512.960.2674
[email protected]

Justin Chambers
Director
512.969.6838
[email protected]

Mortgage Banking

JASON RICE
[email protected]
Senior Managing Director
972.839.5227

CHRIS POLLARD
[email protected]
Managing Director
214.360.3839

BOYD OLIVER
[email protected]
Senior Director
972.801.3069

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