The online auction of the 25-story U.S. Bank Center in downtown St. Paul has been postponed again, now scheduled to take place in mid-January 2024. Originally set to begin on December 4, the auction has faced challenges that have delayed its progression. The property, located at 101 E. Fifth St. and adjacent to the Green Line light rail corridor’s Central Station, is currently reported to be 26% occupied.
The U.S. Bank Center fell into foreclosure a year ago, leading to its auction listing. John McCarthy, a listing broker with Colliers International, cited readiness issues regarding title work as a reason for the delay. “We had to have seven days for all bidders to look at it,” he explained. “It’s just been so challenging with it being a foreclosed property. It’s been really challenging to get the property on the market.”
First Interstate Bank is overseeing the auction of the U.S. Bank Center, which was previously owned by Madison Equities. The minimum advertised starting bid is set at $1 million, although McCarthy noted that this amount may decrease as the auction date approaches. He expressed optimism, stating that 170 interested parties have signed non-disclosure agreements, allowing them access to tenant information and other details in an online data room.
As the auction process continues to unfold, McCarthy reported that “five or six” parties have committed to be live bidders, requiring proof of funds. This number might increase by January 12, 2024, as the auction date nears.
Seizure of Park Square Court Property
In a related matter, a notice has been posted by the Ramsey County Sheriff’s Office, indicating 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 following legal action initiated by Merchants Bank in October 2024. The bank filed against Rosemary A. Kortgard, the widow of former Madison Equities principal James Crockarell, as well as the Park Square Court Building LLC, the Grotto Group, and Momentum Design Group LLC over two unpaid loans totaling $5.7 million and $2.7 million in principal.
The foreclosure of Park Square Court was approved by the courts in February. In November, attorneys for Merchants Bank requested a “writ of execution” from the Ramsey County Court Administrator to facilitate the seizure of the property. A notice was officially posted on the building last Friday, signaling the ongoing financial troubles associated with properties under the Madison Equities umbrella.
As the auction for the U.S. Bank Center approaches, stakeholders will be closely monitoring the developments, reflecting broader trends in the commercial real estate market amidst economic fluctuations.
