A co-living developer will resume construction on its 33-story tower in Houston’s Museum District after securing new financing.
Chicago-based X Company obtained a $172 million loan from New York-based Mavik Capital to finish construction on X Houston, a 475-unit co-living apartment building southwest of downtown, the Houston Chronicle reported.
The 750,000-square-foot project, at 5501 La Branch Street, stalled after financing fell through, leaving it half-finished for more than a year.
This latest financing package was arranged by Raven Capital Management, a partner of X Company. The deal includes a repayment guarantee from Raven, which also facilitated $27.9 million earlier this year to cover completed work. It also resolves more than $67 million in liens from unpaid subcontractors, suppliers and contractors, according to Harris County records.
Since the claims have been settled, work could resume before the end of the year, said Brady Johnson, senior vice president at Hoar Construction, the project’s contractor.
“We’re really, really close,” Johnson said. “We’re just working a few things out.”
While the delay marked a challenging period for X Company, headed by CEO Noah Gottlieb, the developer remains committed to seeing the co-living project come to life.
The development would be one of the city’s first ground-up co-living developments, targeting renters seeking affordable housing with flexible lease terms. The project will feature 646 beds across 475 units ranging from studio, one- and two-bedroom apartments. The project’s development costs break down to about $165,600 per bedroom, which tenants lease individually while sharing common areas like kitchens and bathrooms.
X Company has also struggled to find funding sources for its other developments, including the second phase of its co-living project in Phoenix. That 600,000-square-foot building owes $36.2 million to contractor Clayco, which has filed lawsuits over unpaid work.
X Company had an agreement with the city of Phoenix for property tax abatement during construction, contingent on securing new financing, but progress has been delayed.
— Andrew Terrell
Read more
Residential
Phoenix
Co-living apartment project X Phoenix runs out of cash
Development
Houston
Construction to resume for X Company resi tower in Museum District
Residential
Houston
X Company halts Houston co-living tower