XSpace has closed a $29 million construction loan for its flagship Houston commercial-condo project at and plans to break ground this Thursday. The four-story development is set to deliver about 86 commercial condo units for owner-users, ranging from offices and studios to car storage, with spaces spanning roughly 700 to 7,000 square feet. Founder Byron Smith said the team redesigned the project and lined up new partners before moving ahead.
According to Bisnow, the construction loan was arranged by Adam Mengacci, Matt Polci and Sunny Sajnani of IPA Capital Markets, a division of Marcus & Millichap, and will fund construction at the Design Center site. Bisnow also reports that permits for the site and the building were approved in 2024 and 2025, respectively, and that project delivery is slated for the first quarter of 2027.
What XSpace Is Selling
A listing on LoopNet shows XSpace Houston will offer 86 units priced from about $388,800 to more than $5.4 million for combined packages. Units are roughly 700 to 7,000 square feet and feature mezzanines, terraces, 20-foot ceilings and drive-up access. The listing highlights amenities such as a rooftop owners' lounge, conference rooms and robust security aimed at entrepreneurs, collectors and small studios. Buyers can opt for prebuilt layouts or fully customized designs.
Who’s Backing The Deal
XSpace said it cemented an equity partnership with KDW, Pyek Financial and an advisory group led by Welcome Wilson Jr., describing the move as part of a strategic push to scale the company in Texas, according to a company announcement. In a press release, XSpace framed those partners alongside the IPA-arranged construction financing, while local coverage pointed to the new partners as a core reason the developer moved the schedule forward. See reporting from InnovationMap for additional context on the partnership.
Where It Fits In Houston
The project sits in the Houston Design Center pocket along Old Katy Road, a cluster of showrooms and studios that connects to Uptown and downtown via I-10 and Loop 610. That location is intended to lean on nearby traffic to The Galleria and Memorial Park while offering quick highway access for owner-users, according to the Houston Design Center’s site. The address, 7022 Old Katy Road, places the building inside the Design District with convenient regional connections.
Market Context
XSpace’s owner-occupant commercial-condo model is still uncommon nationally but has precedent in Austin, where the developer opened its first location in 2022 and sold units to a mix of small businesses and collectors, according to the Austin Business Journal. Recent construction financings across XSpace projects, including another $29 million financing reported this month for a nearby development, show investor appetite for flexible, ownable industrial-style space, per coverage in The Real Deal. Together, those moves point to demand for compact, customizable commercial space outside traditional big-box industrial parks.
"The design changes position us to scale and grow more quickly," XSpace founder Byron Smith told Bisnow, adding that the company waited to align partners and capital before moving forward. With financing in place, XSpace is set to begin site work this week and deliver the Houston project in early 2027.
