HOUSTON- Chase Merritt LP has officially exited the Houston market by selling the second of its two holdings in the area. Following a five-year hold on the 428,285-square-foot Galleria Plaza, the Atlanta, the southern California company and partner Pacific Coast Capital Partners LLC sold the mixed-use, property to a joint venture consisting of Georgia-based Songy Partners LLC and the Carlyle Group.  The sale took place a little more than three months after Chase Merritt sold West Loop I & II to KBS Strategic Opportunity REIT Inc..

Galleria Plaza is comprised of five primary components with details listed below:

The buildings are at 5251 and 5333 Westheimer Rd., 2600 Sage Rd. and 5250 W. Alabama St.

According to HFF senior managing director Dan Miller, the seller had successfully stabilized the asset, and given the demand for quality commercial real estate in Houston, determined it would be a good time to sell. "There really wasn't much left to do in the way of creating value, so they decided to go ahead and take some chips off the table," explains Miller who with HFF director Martin Hogan, represented Chase Merritt in the transaction.  

Miller tells GlobeSt.com that the property received a fair amount of interest, mainly from local operators with institutional partners. He adds that the buyer was well-qualified and well-capitalized and had the additional attribute of owning 5433 Westheimer, just down the street. "Though the buyer is from Atlanta, they're very, very familiar with the area and the real estate," Miller observes.

Chase Merritt acquired the property in early 2008 as a value-add play. In addition to changing the name from Westheimer at Sage (Four Corners) to the current Galleria Plaza, the seller also upgraded the common areas, parking structures, façade and landscape. Chase Merritt also worked through a lease roll involving approximately half the space.

"They came in at the peak of the market, then the financial crisis hit," Miller says. "But they came back and stabilized the Galleria Plaza buildings. Unless they were willing to hold and go through the next major roll which is down the road, it's a perfect time to sell."