A Chicago-based developer is set to resume work on a 33-story co-living tower in Houston’s Museum District, more than a year after the project was halted.
X Company is preparing to resume construction on the X Houston tower after securing nearly $28 million in financing from New York-based lender Raven Capital Management, the Houston Chronicle reported. The $27.9 million loan was provided to XSC Houston Investments, a subsidiary of the developer.
The 750,000-square-foot tower at 5501 La Branch Street stalled last fall due to financing issues and a series of liens filed by contractors and subcontractors for unpaid services. Instead of completing the project in 2023 as intended, X Company left behind an unfinished structure and a towering crane dominating the neighborhood’s skyline.
Initially estimated to cost $107 million, the finished tower will feature 646 beds across 475 units — co-living works more like student housing, where tenants rent bedrooms and share common spaces like kitchens and bathrooms with others. After work stopped last year, more than $67 million in liens were filed, including $38 million from Hoar Construction for unpaid work, which the construction company said has been settled.
With financing in place and contractors ready to get back to work, construction could resume as early as November.
The developer has faced similar struggles in other cities. In Phoenix, work on a second phase of its X Phoenix project was halted last year, leading to lawsuits and liens against the company. Financial issues have also surfaced at an X development in Denver, where the company closed a social club linked to one of its co-living buildings.
The relationship between X and Raven Capital has become more prominent, as records show that X CEO Noah Gottlieb was removed as a managing member of XSC Houston earlier this year. Raven Capital COO Noah Himmel has since been added as an authorized person for XSC Houston.
— Andrew Terrell
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