HALL Structured Finance Closes $29M Construction Loan for XSpace Houston Industrial Condominium Development

Dallas-based HALL Structured Finance announced April 23, 2026, that it has closed a $29 million first lien construction loan for XSpace Houston, a four-story, 86-unit industrial condominium development in Houston, Texas. The borrower is XSpace Group, a real estate development firm specializing in lifestyle industrial flex condominium projects.

Project Overview: Industrial Real Estate Meets Lifestyle Design

XSpace Houston will encompass 93,430 square feet and feature units ranging from 800 to 8,000 square feet, designed to serve small businesses, entrepreneurs, and individual owners seeking customizable environments. The project blends flex office, invite-only retail, and lifestyle space within a single industrial condominium structure.

Unit specifications include industrial concrete buildouts, natural light, water access, HVAC systems, overhead garage doors, and 20-foot clear heights. Select units will offer mezzanine and/or balcony space. Community amenities will include a shared lounge with a conference room, kitchen, and seating areas, as well as two car elevators designed to facilitate storage and vehicle access.

"XSpace Houston stands out for its ability to accommodate a broad range of users within a single project while maintaining functionality at the unit level," said Allyson Van Blarcum, loan originator and Vice President at HALL Structured Finance. "The flexibility in design, combined with the ability for owners to tailor each unit to their specific needs, creates a product that we believe is well-suited for the Houston market. At HALL Structured Finance, we focus on partnering with experienced sponsors delivering innovative product types that are meeting real demand, and we are pleased to support a development that will be a leading contributor to the expansion of this asset class."

Commercial Real Estate Financing Details

The $29 million loan is structured as a first lien construction facility. HALL Structured Finance, a Dallas-based lender focused on construction and commercial real estate financing, served as the lead lender on the transaction. No additional loan terms, including interest rate, loan term, or recourse structure, were disclosed in connection with the announcement.

XSpace Group and the Lifestyle Industrial Concept

XSpace Group developed the lifestyle industrial condominium concept from prior customer demand in Australia before launching in the United States in 2020, with its first domestic project in Austin, Texas. The company was co-founded by Byron Smith, who has stated plans to scale the platform nationally through multiple projects over the next five years.

"Houston has no shortage of office space, but what it lacks is space that truly reflects the way its most accomplished professionals live and work," Smith said. "XSpace Houston will be a first-of-its-kind destination in the heart of the city's Design Center, created for professionals, entrepreneurs, and collectors who have outgrown conventional offices. Designed around ownership, flexibility, and personal expression, XSpace Houston offers customizable private suites and premium garage spaces that elevate both work and lifestyle."

Real Estate Development Context

The XSpace Houston project is positioned in Houston's Design Center district and targets a user base that includes professionals, entrepreneurs, and collectors seeking ownership — rather than lease — of customizable commercial space. The condominium ownership structure differentiates the project from conventional industrial leasing, offering buyers the ability to build equity in their workspace while tailoring units to specific operational or lifestyle requirements.

XSpace Group has stated plans to expand the platform nationally through multiple projects over the next five years. The company's Austin, Texas, project represented its first U.S. entry in 2020, and the Houston development marks a continued presence in the Texas market. HALL Structured Finance has also closed a series of construction loans across asset classes in recent months, including multifamily and hospitality projects in markets including Tacoma, Washington, and Clearwater, Florida.