The debt on two properties totaling 785 units in Phoenix and Denver has hit the market.
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Chicago-based The X Co., which develops coliving spaces, defaulted on the loans, totaling $325M, and Newmark is marketing the debt on behalf of lender Mack Real Estate Credit Strategies, GreenStreet's Real Estate Alert reported.
The X Co. developed the 330-unit Phoenix building in 2022 and the 455-unit Denver property in 2021.
The debt on the X Phoenix property totals $155M, made up of a $123M senior loan and a $32M mezzanine loan. The interest-only note hits its initial maturity in September.
The debt on the X Denver property is $170M. The interest-only loan is scheduled for initial maturity in January.
Mack Real Estate originated the senior debt and is “believed to have provided” the mezzanine debt, according to Real Estate Alert. The X Co. secured the notes in 2022. Each had a three-year term and two single-year extension options.
Buyers can purchase the loans separately or together, and initial offers are due June 18.
The X Co. founder Noah Gottlieb developed the concept while at Miami-based Property Markets Group and spun it off as an independent firm, according to Real Estate Alert. Residents have access to coworking spaces, members-only clubs, activities and furnished apartments.
The X Co. has two more properties under development in Phoenix, the 352-unit Phase 2 of X Phoenix and the 370-unit Rosie, both set to be completed this year, according to The X Co.’s website.
Its 475-unit X Houston is set to deliver this year, while the 432-unit X Tampa is set to deliver in 2026. In California, the 114-unit X Oakland is in the preconstruction phase.
The company developed the 99-unit X Chicago, which it sold last year, and it has another building in Denver with 351 units that it delivered in 2023.
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