A community developers call a “pocket neighborhood” is slated to bring 29 townhomes to San Marcos to help fill what’s been dubbed the “missing middle” —  that rare housing class aimed at middle-income buyers.

San Marcos real estate firm Carson Properties and also-local architecture and urban design company Colorspace are developing the project at 101 Lively Lane.

Eleven of the homes at 101 Lively Lane were completed and sold in 2022. Developers started started the projects second and final phase, which will consist of 18 townhome-style condominium units in six buildings.

Three of units will have a street-level space suited for small professional or light retail businesses, with a two-bedroom and two-bath flat above. The remaining units will be  two-bedrooms with one-and-a-half bathrooms and three bedrooms with two-and-a-half bathrooms.

Construction on the second phase is expected to be completed in spring or summer 2025.