Songy, CharlesBank Pay $15.5M for Houston Office Building

HOUSTON-Atlanta-based Songy Partners Ltd. and Boston-based Charlesbank Capital Partners LLC have closed a second purchase from a $500-million fund, honing in on a 155,000-sf office building in Houston. The duo has paid $15.5 million for the former Landmark Graphics building, sitting on 11 acres at 15150 Memorial Dr.

The building once housed Landmark Graphics, which was acquired six years ago by Halliburton Energy Sources. Landmark has since relocated to 2101 Citywest Blvd.

CEO David Songy tells GlobeSt.com that the fund is looking at additional acquisition opportunities in Houston, elsewhere in Texas, Georgia and Florida. Earlier this year, the buying partners acquired a 150,000-sf building in Boca Raton, FL.

Songy is no newcomer to Houston. It owns a suburban office building at San Felipe and Augusta in the Galleria submarket. Until recently, it managed 777 Post Oak, another Galleria office building that Songy bought, revamped and then sold.

Songy intends to immediately start upgrades to its newest Houston purchase. Work on the common areas will cost less than $1 million while tenant spaces will receive well over $1 million of improvements, he says. From the buyer’s perspective, though, the class A building overall is in great condition. The Harris County Appraisal District assesses the property, which includes a parking garage, at $15.3 million for 2002.

Songy says there are no specific plans in place as to whether the asset will be a sell or hold once it is stabilized. Bonnie Kelley, Songy’s marketing director, has been tasked with the leasing drive. Meanwhile, a feasibility analysis is under way to determine the best use for balance of the 11 acres, land that most likely will be developed for office or residential use.