Developer XAG Group to build $12M headquarters office in Katy

Development firm XAG Group is moving up to Katy with ambitious plans for its own office headquarters. 

The firm is developing a three-story office building with a $12 million price estimate, according to plans filed with the Texas Department of Licensing and Regulation. The cost to build the 41,000-square-foot building approaches $300 per square foot.

Called the XAG Headquarters Office Building, it will sit atop 1.5 acres at 6815 Gaston Road, near Westpark Toll Road. 

Construction is expected to begin in April, according to the filing. Katy-based design firm Investwell Architects is attached to the project. 

The firm will move from 6115 FM 359 in Richmond, about 8 miles south of Katy. 

XAG has outgrown its office, CEO Nathaliah Naipaul said. The firm expects to double its employee count to over 30 this year, and the firm will lease about 12,000 square feet of the building to tenants, she said. 

As developers “we like to own our own property,” she said. Naipaul and the firm’s president live in the Katy area, and they wanted to place their HQ there.

XAG Group’s development pipeline includes upwards of $180 million in developments, mostly in Greater Houston. They include the Baytown Medical Center and the Fulshear Lakes Town Center, as well as retail, residential and medical developments expected to start construction in the coming months in the Richmond and Rosenberg areas. 

The firm acquired a 20-acre site in Sam Yager’s 3,000-acre master-planned community, Audubon, at the intersection of Highway 249 and FM 1488 in Magnolia. That’s where it is planning its first multifamily development, the 365-unit Rasha at Audubon. It is expected to be completed in 2025, according to the firm’s website. It is also developing a 30,000-square-foot, two-story retail center expected to hit the market by the end of the first quarter. Katy’s firm office market has staved off the worst for Greater Houston as the asset class has largely struggled across most of the metro post-pandemic. The West Houston submarket, which includes Katy, comprised nearly one in five new leases in the fourth quarter, according to JLL.

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