Hempel Properties

What Hempel Properties does

Hempel Properties (legal entity: Hempel Companies; also doing business as Hempel Real Estate and Hempel Cos.) is a privately held, Midwest-focused commercial real estate firm founded in 2001 and headquartered in Minneapolis, Minnesota, with a secondary office in Milwaukee, Wisconsin. The company acquires, develops, redevelops, and actively manages office, retail, industrial, multifamily, hospitality, and parking assets — emphasizing value-add strategies on underperforming and distressed properties, with documented case studies such as Canadian Pacific Plaza (acquired 2011 at $23.6M / 48% occupancy, sold 2015 at $68.5M / 98% occupancy) and LaSalle Plaza (acquired 2023 at $46M, occupancy raised from 68% to ~82%).

The firm's operating model is a vertically integrated, full-service platform covering acquisition sourcing, capital structuring, development, asset and property management, leasing through an in-house broker team, and investment management for institutional co-investors. Revenue is generated through property appreciation, leasing commissions, ongoing asset and property management fees, development fees, and co-investment returns from joint ventures — most notably a $300 million programmatic JV with TPG Angelo Gordon for industrial deployment across the Midwest, alongside alliances with Marcus Hotels & Resorts, Midloch Investment Partners, Marcus Investments, ICAP Development, and others. Customer segments include enterprise commercial tenants (e.g., Medline, Hershey, Enerpac Tool Group, PHS West, Laborie Medical Technologies, Buske Lines), SMB retail and food-hall operators, and institutional capital partners. The firm employs 51–100 people, has no proprietary technology platform, and operates a traditional real-estate operating model rather than a software or tech-enabled offering.

Following founder Jon Hempel's death in 2018, CEO Josh Krsnak has scaled the firm materially, with cumulative acquisitions exceeding $1 billion since inception and a 2023 portfolio valuation of more than $750 million in new and adaptive re-use office and retail properties alone. Recent moves (2025–2026) include the TPG Angelo Gordon JV, the Industrial Outdoor Storage Fund ($15M launch with expansion to $20M), the Terasă at West End $91.7M mixed-use groundbreaking, the Maple Grove medical laboratory acquisition, the Eagan industrial acquisition, a headquarters relocation to LaSalle Plaza, and a senior leadership build-out largely recruited from United Properties.

Name

Hempel Properties

Legal name

Hempel Companies

Website

https://hempelcompanies.com

Company type

Private

Founded year

2001

Operating status

Operating

Headcount range

51–100 employees

Short description

Hempel Properties is a privately held Midwest commercial real estate firm that acquires, develops, and manages office, retail, industrial, multifamily, and hospitality assets, serving enterprise tenants and institutional capital partners through a vertically integrated acquisition-to-asset-management platform.

Ownership category

akta.pro rank

Product category

Commercial Real Estate Services

NAICS

Lessors of Nonresidential Buildings (except Miniwarehouses) (531120), Offices of Real Estate Agents and Brokers (53121)

SIC

Real Estate Dealers (For Their Own Account) (6532), Land Subdividers & Developers (No Cemeteries) (6552)

akta.pro primary industry

Real Estate Investment Management (Acquisitions & Dispositions) (BPAJAMAK)

akta.pro secondary industry

Industrial Land & Build-to-Suit Site Brokerage (BPAJACAJ)

Keywords

• Commercial real estate
• Property development
• Asset management
• Value-add investing
• Adaptive reuse

Headquarters

HQ city

Eden Prairie

HQ country

United States

HQ region

North America

Offices3 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Marketing or Sales, Technology or R&D, Others

Revenue model

1. Commercial Real Estate Investment and Development: Hempel acquires, develops, and redevelops commercial real estate properties throughout the Midwest. Revenue generated through property appreciation, leasing income, and eventual sale of repositioned assets.
2. Asset and Property Management: Hempel acts as asset and property manager on all of its properties, generating ongoing management fees.
3. Joint Venture Partnerships: Strategic partnerships with institutional investors (TPG Angelo Gordon, Marcus Hotels, Midloch Investment Partners) where Hempel provides development and management expertise in exchange for co-investment returns.

Pricing tiers

Go-to-market motion1 record

Distribution channels2 records

Marketing channels5 records

Core offering

Hempel acquires, develops, and redevelops commercial real estate throughout the Midwest, specializing in value-add turnaround and adaptive re-use projects across office, retail, industrial, multifamily, and hospitality properties. The firm also operates an in-house property and asset management platform and a full-service leasing brokerage, frequently partnering with institutional capital providers via joint ventures to source, execute, and stabilize investments.

Product overview

Hempel is a commercial real estate firm that operates as a unified platform offering acquisition, development, redevelopment, property/asset management, leasing, and investment services across office, retail, industrial, multifamily, and hospitality property types. The core offering centers on identifying undervalued commercial properties, particularly turnaround and adaptive re-use projects, adding value through redevelopment and active management before stabilizing them for investors. Key portfolio properties include LaSalle Plaza (downtown Minneapolis office), Shops at West End (St. Louis Park retail), The Avenue (Milwaukee mixed-use with 3rd Street Market Hall), Brockton Business Park (industrial), and Terasă (multifamily/residential). Investment vehicles include direct property co-investment, programmatic joint ventures with institutional partners (TPG Angelo Gordon), and specialty funds (Industrial Outdoor Storage Fund).

Differentiator

Problem solved

Functional benefit

Products and services

• Commercial Real Estate Acquisition & Development Hempel acquires, develops, and redevelops commercial real estate throughout the Midwest, specializing in value-add, new construction, and adaptive re-use projects across office, retail, industrial, and multifamily property types for institutional investors and tenants.
• Property & Asset Management Full-service property and asset management for Hempel's own and joint venture portfolio, including operations, leasing support, and financial optimization across office, retail, industrial, and multifamily assets.
• Leasing Brokerage Services Direct landlord-side commercial leasing brokerage with experienced brokers facilitating office, retail, and industrial lease transactions across Hempel's Midwest portfolio.
• Investment Management and Joint Ventures Value-add focused investment management offering direct co-investment opportunities and programmatic joint ventures with institutional capital partners such as TPG Angelo Gordon, generating returns while managing risk across a diversified Midwest portfolio.
• Industrial Outdoor Storage Fund A $15 million fund (potentially expanding to $20 million) targeting 8–12 industrial outdoor storage land properties including truck yards and equipment storage across the central U.S. and Midwest, providing LP investors with sector-specific exposure.
• LaSalle Plaza A 30-story, 650,000+ SF Class A office tower in downtown Minneapolis, acquired by Hempel in 2023 and repositioned with amenities including pickleball courts, golf simulators, rooftop deck, conference rooms, and a concierge service offering Cadillac Escalades to tenants; the building serves as Hempel's headquarters as of 2025.
• Shops at West End A 382,000 SF retail lifestyle center in St. Louis Park, MN featuring entertainment venues, restaurants, fitness facilities, and retail space; serves as a flagship retail asset in Hempel's portfolio.
• The Avenue (Milwaukee) A $150+ million mixed-use redevelopment of the former Grand Avenue Mall in downtown Milwaukee, featuring the 3rd Street Market Hall food hall, office space, retail, and the Plankinton Clover apartments.
• Brockton Business Park A multi-phase industrial development in Corcoran, MN spanning approximately 540,000 SF, developed in partnership with TPG Angelo Gordon; Phase 1 includes a 286,120 SF building and Phase 2 will span ~252,000 SF, with tenants including Medline (195,000 SF) and PHS West (91,000 SF).
• Terasă at West End A $91.7 million six-story mixed-use development in St. Louis Park featuring 223 apartment units (with deeply affordable housing) and 21,000 SF of retail/commercial space.
• The Lofton Hotel A 251-key hotel in downtown Minneapolis (formerly Loews Minneapolis Hotel), rebranded under the Tapestry Collection by Hilton flag; owned as a joint venture between Marcus Hotels & Resorts, Hempel Real Estate, and Robinson Park Investments, with Marcus Hotels managing the property.

Quantifiable outcome

• Increased LaSalle Plaza occupancy from 68% to 82% after acquiring at significant discount
• +2 more outcomes

Named customers11 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Eight partnerships are on record, tiered major, core and minor.

• Monarch Development PartnersmajorStrategic or Co-development Partner · 11 August 2025Hempel joined with Monarch Development Partners (along with Jester Concepts and Rokos Advisors) for the Edina Grandview site redevelopment — a 3-acre former public works site to include 70 owner-occupied housing units, townhomes, condos, and retail.
• Jester ConceptsmajorStrategic or Co-development Partner · 11 August 2025Development partner for Edina Grandview site redevelopment alongside Hempel and Monarch Development Partners.
• Rokos AdvisorsmajorStrategic or Co-development Partner · 11 August 2025Development partner for Edina Grandview site redevelopment alongside Hempel and Monarch Development Partners.
• Market at Malcolm Yards / Patricia WallmajorStrategic or Co-development Partner · 24 March 2025Hempel partnered with the leaders behind the Market at Malcolm Yards to bring a 30,000+ SF food hall to LaSalle Plaza in downtown Minneapolis, featuring 16 restaurant spaces, two bars, event space, and amenities.
• Marcus Hotels & ResortscoreStrategic or Co-development Partner · 4 March 2024Marcus Hotels & Resorts partnered with Hempel Real Estate and Robinson Park Investments to acquire The Lofton Hotel (formerly Loews Minneapolis Hotel) for approximately $21.15 million. Marcus Hotels manages the 251-room hotel under Tapestry Collection by Hilton flag.
• ICAP DevelopmentminorStrategic or Co-development Partner · 13 June 2023Partnership with ICAP Development purchased a two-block development site in Brewers Hill, Milwaukee spanning 3.3 acres for future development.
• Galahad DevelopmentminorStrategic or Co-development Partner · 10 December 2021Partnership for assisted living and memory care development in Bellevue, Wisconsin — a 72-unit community at 1780 Servant Way.
• Great Lakes Management (GLM)minorStrategic or Co-development Partner · 10 December 2021Operating partner for assisted living and memory care development in Bellevue, Wisconsin alongside Hempel and Galahad Development.

Scale indicators8 records

Recent moves10 records

Expansion highlights6 records

Direct peers

• United Properties: Minneapolis-based commercial real estate investor, developer, and manager focused on office, industrial, retail, and mixed-use assets across the Upper Midwest. Highly comparable to Hempel — same geography, similar asset class mix, and notably the source of multiple recent Hempel senior hires (COO, EVP Development, President of Development).
• Opus Development Company: Minneapolis-headquartered national developer of office, industrial, retail, and multifamily real estate. Comparable to Hempel as a Midwest-rooted, vertically integrated CRE developer/investor with a similar mixed-use and adaptive reuse orientation, though at larger scale and broader geography.
• Ryan Companies: Large Minneapolis-based commercial real estate developer and owner with national reach across office, industrial, retail, healthcare, and multifamily. Comparable to Hempel in Midwest base, mixed-use development capabilities, and tenant-relationship-driven model; meaningfully larger in scale and AUM.
• Mortenson: Minneapolis-based developer with significant real estate operations across office, industrial, hospitality, and mixed-use nationally. Comparable to Hempel as a Midwest-rooted real estate developer and investor; broader in geography and capital base.
• Capital Partners: Washington, D.C.-based private real estate investment firm investing across multifamily, mixed-use, office, and industrial. Comparable to Hempel in value-add investment philosophy, JV-driven capital structure, and adaptive reuse expertise, though operating in East Coast/Mid-Atlantic markets rather than the Midwest.
• Midloch Investment Partners: Chicago-based private equity real estate firm focused on value-add and opportunistic investments across the Midwest. Highly comparable to Hempel as a co-GP/JV partner on multiple Hempel deals (Malt House, The Oscar, Bergen Plaza), with similar Midwest geography and value-add orientation.
• North American Properties: Atlanta-based private real estate investment and development firm specializing in mixed-use, retail, and multifamily repositioning. Comparable to Hempel in adaptive reuse, mixed-use development, and food hall activation (similar playbook to The Avenue/3rd Street Market Hall).

Broad incumbents

• Unico Properties: Seattle-based commercial real estate owner and operator with a national portfolio across office, mixed-use, and multifamily. Comparable to Hempel in office asset management and repositioning (Kris Hansen, Hempel's VP of Asset Management, joined from Unico), though operating at broader geographic scale.
• CBRE Group: World's largest commercial real estate services and investment firm. Comparable to Hempel as a CRE service provider that competes for leasing, investment sales, and asset management mandates in the same Midwest submarkets, though operating at vastly larger scale and broader scope.
• JLL: Global commercial real estate services firm offering investment sales, leasing, and asset management. Comparable to Hempel in leasing brokerage and CRE investment services across office, industrial, and retail, but with global scale and a much broader service portfolio.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/hempel
• Instagraminstagram.com/hempelrealestate
• Xx.com/hempelre

Revenue estimate

Valuation estimate

Number of profiles

Profiles11 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Hempel Properties