SAN MARCOS, TX—Dallas-Fort Worth continues leading the nation in supply with 16,991 units expected to deliver in the next 12 months, according to Transwestern. One of those properties now underway is the Reserves at San Marcos, which will feature 376 units, 298 of which will be reserved for tenants earning up to 60% of the area median income. The remaining units are intended to be market rate and 28 units will be accessible to disabled residents.

Apartments will be available in one-, two-, three- and four-bedroom configurations, ranging in size from 650 to 1,350 square feet. The project set on 21 acres is expected to be completed by 2022.

KeyBank Real Estate Capital recently arranged a $43.8 million construction loan and permanent financing on behalf of Carrollton, TX-based Target Builders for the ground-up development of the affordable multifamily property. Key Bank Real Estate Capital's community development lending and investment team purchased the private activity tax-exempt bonds as part of the funding structure. Key Bank's Commercial Mortgage Group secured the $43.8 million of permanent loan financing for the property via Freddie Mac that includes a $41 million tax-exempt loan and a $2.8 million taxable tail, both of which are fixed-rate loan structures.