IPA Capital Markets Arranges $29M Construction Financing for Houston Industrial Condo Development
IPA Capital Markets, a division of Marcus & Millichap (NYSE: MMI), has arranged $29 million in nonrecourse construction financing for XSpace Group's 84-unit mixed-use industrial condominium development in Houston's NW Inner Loop submarket, the firm announced April 17, 2026.
The financing was secured on behalf of XSpace Group, the developer behind the project, which the company brands as "Lifestyle Industrial" — a concept that bridges industrial, flex, warehouse, office, retail, and entertainment uses within or near urban centers. The Houston development represents XSpace Group's second industrial real estate project in Texas.
Deal Structure and Financing Details
The $29 million construction loan is structured on a nonrecourse basis. The IPA Capital Markets team arranging the financing was led by Adam Mengacci and Travis Headapohl, based in the firm's Dallas office, alongside Matt Polci from the firm's New York City office.
"My IPA colleagues and I are proud to have successfully secured construction financing for this visionary XSpace industrial project in Houston," Mengacci said in a statement. "We look forward to seeing XSpace transform the industrial landscape in other U.S. markets and are honored to have played a key role in bringing this project to life."
Byron Smith, founder of XSpace Group, said the financing signals broader market confidence in the project's concept. "This financing reflects strong confidence in XSpace, our Houston vision, and the broader demand for flexible, community driven commercial space," Smith said. "With this loan secured, we're moving full speed ahead on bringing our next generation project to life and strengthening our footprint across Texas."
The Lifestyle Industrial Concept
XSpace Group describes its Lifestyle Industrial model as a community-driven, high-end, flexible industrial space that offers users the ability to own their own unit. The concept is positioned as the first U.S. adaptation of a model that has been established and popularized in Australia.
The 84-unit development is designed to serve a range of uses under one roof, including industrial, flex, warehouse, office, and retail functions, with an entertainment component as well. By locating the project within or near an urban center — in this case Houston's NW Inner Loop — XSpace Group is targeting demand for accessible, multi-use commercial space.
About the Firms Involved
Institutional Property Advisors (IPA) is a division of Marcus & Millichap specializing in capital markets services for major private and institutional clients, including real estate acquisition advisory, disposition, and financing of institutional properties and portfolios. The firm's capital markets platform operates across multiple U.S. offices, with the XSpace Group engagement drawing on teams in both Dallas and New York City.
XSpace Group, founded by Byron Smith, is an industrial real estate developer focused on the Lifestyle Industrial concept. The Houston project is the company's second industrial development in Texas, with Smith indicating plans to expand the model to additional U.S. markets.
Sources
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