HEI, HEMPEL FORM JV TO ACQUIRE, CONVERT THE HOTEL MINNEAPOLIS

MINNEAPOLIS — Norwalk, Conn.-based HEI Hotels & Resorts has formed a joint venture with Minneapolis-based Hempel Properties to acquired and convert The Hotel Minneapolis, which is located at 215 Fourth Street in Minneapolis. The joint venture acquired a majority equity interest in the property for an undisclosed price. The 10-story, 222-room hotel will be converted to Marriott’s new Autograph Collection brand. The hotel features the 250-seat Max restaurant, 6,000 square feet of function space, a business center, a boutique convenience store and a fitness center. HEI will operate the hotel property, while Hempel will serve as asset manager and will manage the office and retail portions of the building. CB Richard Ellis|Finance, along with the debt and equity finance team of CB Richard Ellis Capital Markets, served as the financial advisor to Hempel in the restructuring and recapitalization of the property with HEI.