Hempel Real Estate has acquired the Shops at West End in St. Louis Park at nearly a 45% discount from the previous owner's purchase price.
Eden Prairie-based Hempel closed on the deal Wednesday for $64.75 million, far below the $117 million price paid by New York-based American Realty Capital — now known as Necessity Retail REIT — when it purchased the retail property in 2015.
Shops at West End offers 382,000 square feet of retail space, which is currently 81% occupied. It also includes a Cub grocery store, ShowPlace ICON movie theater and 11 restaurants.
Ben Krsnak, executive vice president with Hempel, said the company liked the property's location, at the southwest corner of the Interstate 394 and Hwy. 100 interchange.
The pandemic made many investors wary of retail properties, Krsnak said. "Sellers aren't holding out for top dollar anymore, especially big institutions."
The West End area, Krsnak said, has become a popular alternative gathering spot to downtown Minneapolis. The Shops at West End includes 1,700 free parking stalls.
"All the restaurants are exceeding 2019 numbers," Krsnak said, after meeting with West End tenants.
Restaurants in the complex include Crave, the Local, Rojo Mexican Grill, the Loop and Hope Breakfast Bar.
The spaces previously occupied by TV personality Andrew Zimmern's Lucky Cricket restaurant and Toby Keith's I Love This Bar and Grill remain vacant, said Krsnak, who will be the leasing agent for the property.
Several apartment buildings and two hotels have opened near the property since it opened in 2009. There is also new office development with the fully leased 10 West End building and plans for a second building next door.
The 16-acre West End site includes parcels that could be developed in the future.
