X Houston Tower Construction Resumes
X Company Resumes Construction on Co-Living Tower in Houston
X Company is moving forward with the construction of its co-living apartment tower, X Houston, located at 5501 La Branch Street in Houston's Museum District. The 33-story tower, initially scheduled for completion in late 2023, is now expected to be finished by 2025. Despite the pause in construction last fall and the subsequent filing of liens totaling over $67 million by subcontractors for unpaid work, X Company and its contractors are on the brink of resolving the issue. X Houston will offer 646 beds across 475 units, providing affordable housing with flexible lease terms and high-end amenities tailored to young professionals. Additionally, a new co-living development by The Shelter Companies is set to open in Montrose this summer, further enhancing the co-living options in Houston.
Key Takeaways
- Construction of X Company's co-living tower, X Houston, is set to resume in June 2024.
- The project, initially estimated at $107 million, is now expected to complete in 2025.
- The imminent resolution of the $67 million subcontractor liens suggests a positive turn for X Houston's development.
- X Houston will offer 646 beds in 475 units, catering to young professionals with affordable and flexible co-living spaces.
- An emphasis on amenities and a social club highlights X Houston's appeal in Houston's competitive co-living market.
Analysis
The decision to continue construction on X Houston signifies a potential resolution of the substantial lien dispute with subcontractors, indicating a positive impact on Houston's Museum District and the local economy. However, the construction delay may have negative implications for X Company's reputation and financial standing. With the launch of X Houston and The Shelter Companies' projects, Houston's co-living market is poised for growth, providing affordable housing options for young professionals. This trend is expected to intensify housing market competition and foster innovation in co-living spaces, potentially benefiting financial institutions and real estate investors.
Did You Know?
- Co-Living Apartment Tower: Co-living spaces offer residents private bedrooms while sharing common areas, fostering a community-focused living experience. Co-living apartment towers are high-rise buildings tailored to accommodate this concept, providing a modern living environment.
- Subcontractor Liens: In the construction industry, a lien represents a legal claim by unpaid contractors, subcontractors, or suppliers on a property for the value of their work. The subcontractors' liens against X Company amounting to over $67 million stem from unpaid work since September 2023.
- Affordable Co-Living Spaces: These arrangements present young professionals with budget-friendly housing alternatives compared to traditional apartments, often featuring flexible lease terms suitable for individuals new to an area or in need of temporary housing solutions.