Hempel Buys Two Office Buildings at 222,000 SF

Corporate Center I is at 7401 Metro Blvd., and is 77.4% leased, while Corporate Center III is at 7300 Metro Blvd. and is 96.6% leased, says Hempel. Josh Krsnak, vice president of development at the firm, tells GlobeSt.com that the buildings have an average lease rate of $11 per sf net.

He says both the buildings were renovated three years ago, and will only need an investment in tenant build-out money. "This kind of fit our niche in this market area. Almost everything we own is on the western suburbs of St. Paul, this is in the southwestern suburbs. It's a recovering office market," Krsnak says. Tenants at Center I include Johnson and Condon, with 20,000 sf, and Center II includes tenant Wilkerson and Hegna.

Krsnak would not divulge the purchase price. However, One Corporate Center IV, at 112,085 sf, was purchased by Orix Real Estate Capital Inc. for $9.2 million in January. "That building had much more vacancy than these two," Krsnak says in response to the Orix purchase. "We're very happy with our deal." Corporate Center II is owned and used by the International Dairy Queen Corp., a member of the Berkshire Hathaway family, a company owned by Warren Buffett.

Scott Pollock with United Properties represented Urdang in the sale. Hempel also owns Woodhill Office Plaza in Minnetonka.