Houston/ Real Estate & Development
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Published on May 08, 2024
Construction on $107M Co-Living High-Rise Halts in Houston as Financial Woes LoomSource: Unsplash/ Ümit Yıldırım

Houston's skyline was set for a shakeup with the X Houston high-rise in the Museum District, but those looking skyward for progress have been met with silence. The ambitious $107 million, 33-story tower, aimed at being a modern co-living space, has seen its construction come to an abrupt halt, leaving the structure at 5501 La Branch Street in limbo. According to the The Real Deal, Chicago-based X Company pumped the brakes on the project, which spans 750,000 square feet and was poised to become one of the first of its kind for Houston residents.

Even taking a stroll past the skeleton of X Houston, now a local curiosity, it's unclear when or if construction crews will be back. The Chicago-based developer has also hit pause on similar projects in Phoenix and Tampa, amplifying concerns among industry watchers. In Phoenix, at least, X Company CEO Noah Gottlieb expressed optimism that work would restart, however, Houston's neighbors have been left guessing, spotting that the site had fallen quiet weeks ago, reported by the Houston Chronicle.

Contractors have indicated signs of revival, with talk of work possibly resuming in June. "We’ve been walking the job regularly and it looks good," Hoar Construction's senior vice president Brady Johnson assured in a Houston Chronicle interview. Despite the delays, X Houston could still escalate to its anticipated peak, providing 646 beds across 475 units, exemplifying a co-living concept that leans more towards luxury than mere affordability.

Notably, financial woes seem to shadow the project. Contractors have been staking claims to unpaid work, with liens filed in excess of $67 million as per Harris County deed records. The general contractor, Hoar Construction, is "working closely with the X Co. to get the project restarted," a statement obtained by the The Real Deal says amidst reports of the company itself filing for about $38 million in liens. However, Johnson remains optimistic, mentioning that they are really close to finalizing those arrangements.

Much rests on the success of the negotiations and the resolution of the financial disputes. If they prove fruitful, X Houston could yet redefine urban communal living in the Museum District. Meanwhile, a smaller, unrelated co-living development in Montrose appears unphased by the larger project's hurdles and is expected to open this summer, suggesting the co-living trend still has traction in Houston’s real estate market.

Houston-Real Estate & Development