Hempel Real Estate’s West End Play
In the 13 years since the Shops at West End’s recession-era opening, the south end of the west suburban lifestyle center has never filled. Ben Krsnak believes he can get it done, and soon.
Krsnak is executive vice president at Eden Prairie-based Hempel Real Estate, which acquired the St. Louis Park center for $64.75 million in December—a deal of Black Friday proportions, compared to the $117 million New York-based American Realty Capital paid in 2015 from original developer Duke Realty.
“The initial vision for West End was to build the next Galleria. [But] we’re not leaning into apparel,” Krsnak says. “We see this as more entertainment [and] services that have done well there.”
Think golf simulators, a bakery, fitness. Locally owned gym The Firm recently relocated to Shops at West End after decades on Glenwood Avenue. “We love being close to the western suburbs as well as downtown,” owner Kelly Miyamoto says. An orthodontist has moved in, and negotiations with a bank are underway; rooftop decks for some of the restaurants are under consideration. The 381,000-square-foot property, which includes Cub Foods and ShowPlace ICON Theatre, is more than 80% occupied. “The problem with a shopping center,” Krsnak says, “is if you have one vacancy, it’s the only thing people talk about.”
It’s more than one. Krsnak is working on a high-end steak house and an Italian restaurant. “There are a lot of corporate customers there with expense accounts,” Krsnak says. “It’s the hottest office market in town.”
As for that perpetually vacant south end? Hempel seems to have accepted it won’t be leased. Redevelopment plans, which could run anywhere from $50 million to $150 million, will soon be presented to the city of St. Louis Park. Hempel wants to build upward, and create office space or apartments.
