XSpace Nears Commercial Condo Groundbreaking With $29M Loan
XSpace Group closed on a $29M loan that will fund the construction of XSpace Houston, its second multi-use commercial condo development in Texas.
After a few years of delay, the groundbreaking for the project at 7022 Old Katy Road is scheduled for Thursday, an XSpace representative told Bisnow.
“The shift in timing reflected our decision to redesign XSpace to better achieve product‑market fit, while also ensuring the right partners and funding were fully aligned,” XSpace founder Byron Smith said in a statement to Bisnow. “The design changes position us to scale and grow more quickly.”
XSpace Houston will have 86 commercial condo units that can be used as offices, man caves, garages or anything people want, except for a home. The units will range from 700 SF to 7K SF, with prices from $388K to more than $5M for a combination of two units, according to a LoopNet listing.
The additional time allowed XSpace to cement an equity deal with KDW, Pyek Financial and an advisory group led by Welcome Wilson Jr., Smith said. That strategic investment is in addition to the $29M construction loan arranged by Adam Mengacci, Matt Polci and Sunny Sajnani of IPA Capital Markets, a division of Marcus & Millichap.
“With partnerships, financing, and a more scalable design now in place, it’s the right moment to move forward with the groundbreaking,” Smith said.
The Houston project’s permit approval for the site and building came through in 2024 and 2025, respectively, according to an online timeline. Project delivery is slated for the first quarter of 2027.
The company’s first location opened in Austin in 2022. While the commercial condo concept isn’t prevalent in the U.S., “strata storage” is popular in Australia, where Smith is from. Strata is a property ownership model that allows individuals to own specific parts of a property, such as condominiums in the U.S., for commercial use only.
XSpace is a place for “anyone who’s cool, interesting, successful” to buy space and use it however they want, Smith told Bisnow in 2023.
XSpace Austin users include retired MLB All-Star pitcher Roger Clemens, who uses the space as storage for his baseball memorabilia and as office space for his nonprofit.
