Songy HighRoads and The Carlyle Group Acquire Major Mixed-Use Property in Galleria Submarket
425,000 SF on 7.6 Acres Offers Room for New Development
Songy HighRoads LLC in partnership with The Carlyle Group has purchased Galleria Plaza, a high-profile urban mixed-use project in the heart of one the most desirable submarkets in the country. Terms of the transaction, which closed March 21st, 2013, were not disclosed.
The Atlanta, Ga.-based real estate firm and the Washington, DC-based global alternative asset manager acquired two office buildings, a multi-tenant retail building and two stand-alone retail properties totaling 395,473 square feet of office space and 28,920 square feet of retail space on 7.6 acres in the heart of the Galleria submarket in Houston, Texas. The partnership is exploring the possibility of adding to the site.
“Given our urban infill, mixed-use focus, Galleria Plaza touched each button. The seven-acre site allows us to develop another project while sharing existing parking,” said David Songy, CEO and Co-founder of Songy HighRoads LLC.
Located across from the Galleria Mall, Galleria Plaza office buildings are anchored by Bechtel, IHS Global and Telecheck. The mixed-use project also serves as a gateway to the Galleria area, a 24/7 urban environment defined by its blend of prestigious business and residential addresses, with best-in-class shopping, hotels, dining and entertainment.
“Galleria Plaza offers stabile cash flow, a superb location, and the possibility of a new development opportunity within the burgeoning Houston market,” said Thad Paul, Managing Director of U.S. Real Estate for The Carlyle Group.
At nearly 31.7 million square feet, the Galleria office submarket is the largest suburban office market in Houston and the 17th largest business center in the U.S. Galleria Plaza is located within the Uptown Houston District, a non-profit organization that coordinates mobility, urban design, business development, and promotional services with property owners within the district.
Houston leads the country in job growth and is the sixth largest metro in the U.S. with more than six million residents. Moody’s Analytics predicts that Houston will lead the nation in population growth over its five-year projection period ending 2016.
Carlyle’s share of the equity comes from Carlyle Realty Partners VI, a $2.34 billion real estate investment fund.
About Songy HighRoads LLC
Songy HighRoads LLC is a commercial real estate firm based in Atlanta, Ga. specializing in the acquisition and development of office, hospitality and mixed-use projects in the southeastern U.S. Since 1992, SongyHighRoads has acquired and/or developed more then 5 million square feet with nearly $1 billion in project investment completed or underway. For more information, visit songypartners.com.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $170 billion of assets under management across 113 funds and 67 fund of funds vehicles as of December 31, 2012. Carlyle's purpose is to invest wisely and create value on behalf of our investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, technology & business services, telecommunications & media and transportation. The Carlyle Group employs 1,400 people in 33 offices across six continents.