In downtown St. Paul, the online auction of the 25-story U.S. Bank Center, initially scheduled to commence on Monday, has been postponed once more, now set to begin in mid-January 2024. The property, located at 101 E. Fifth St. and connected to the skyway system, currently has an occupancy rate of just 26%. It has been in foreclosure since last year, with the auction originally planned for November 10 through November 12, 2023.
Listing broker John McCarthy from Colliers International explained that delays arose due to incomplete title work and other critical preparations. “We had to have seven days for all bidders to look at it. It’s just been so challenging with it being a foreclosed property,” he noted. McCarthy emphasized the difficulties of bringing such a property to market.
The office tower was previously owned by Madison Equities and is currently being auctioned by First Interstate Bank, with a minimum starting bid set at $1 million. McCarthy indicated that this minimum bid could be adjusted closer to the auction date. As of now, he expressed satisfaction that 170 interested parties had signed non-disclosure agreements, a necessary step for reviewing tenant information and other details through an online data room. He also reported that “five or six” parties have registered as live bidders, which requires proof of funds, with the possibility of more participants joining by January 12, 2024.
Additional Foreclosure Actions in St. Paul
In a related development, the Ramsey County Sheriff’s Office has issued a notice regarding the seizure of another former Madison Equities property, the vacant Park Square Court building located at 400 Sibley St.. This action is being taken on behalf of a lender.
In October 2024, Merchants Bank initiated legal proceedings against Rosemary A. Kortgard, the widow of former Madison Equities principal James Crockarell, along with the Park Square Court Building LLC and other associated entities, due to two unpaid loans totaling $5.7 million and $2.7 million in principal. The foreclosure was court-approved in February, and in November, attorneys for the bank requested that the Ramsey County Court Administrator issue a “writ of execution,” which directs the sheriff to seize the property entirely. A notice was posted on the building on Friday.
These developments highlight ongoing challenges in the St. Paul real estate market, particularly concerning properties associated with Madison Equities. The outcome of the upcoming auction and the resolution of other foreclosure issues could significantly impact the local commercial property landscape in the months ahead.
