U.S. Bank Center Auction Delayed Again, New Date Set for January

In downtown St. Paul, the online auction of the 25-story U.S. Bank Center has been postponed again, now scheduled to begin in mid-January. Originally set to take place from November 10 to November 12, the auction for the property located at 101 E. Fifth St. has faced multiple delays due to complications surrounding its foreclosure status.

The U.S. Bank Center, which is currently only 26% occupied, fell into foreclosure a year ago. John McCarthy, a listing broker with Colliers International, explained the delay on Monday, stating, “Some of the title work and some of the other things weren’t ready. 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. … It’s been really challenging to get the property on the market.”

The auction is being conducted by First Interstate Bank, with a minimum starting bid set at $1 million. McCarthy noted that there is a possibility the minimum bid could be adjusted closer to the auction date. Despite the challenges, he expressed optimism, mentioning that 170 interested parties have signed non-disclosure agreements, which allow them to review tenant information and other relevant details in an online data room.

As of now, McCarthy reported that “five or six” parties have registered as live bidders, a process that requires proof of funds. He anticipates that this number may increase prior to the auction’s new start date of January 12.

Foreclosure and Legal Actions Surrounding Madison Equities

The U.S. Bank Center is not the only property linked to Madison Equities facing legal challenges. Near Mears Park, 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.

In October 2024, Merchants Bank initiated legal action against Rosemary A. Kortgard, the widow of former Madison Equities principal James Crockarell. The lawsuit also involves the Park Square Court Building LLC, the Grotto Group, and Momentum Design Group LLC, concerning two unpaid loans totaling $5.7 million and $2.7 million in principal.

The foreclosure of the Park Square Court was approved by the courts in February. Following the ruling, attorneys for the bank sought a “writ of execution” from the Ramsey County Court Administrator, which directs the sheriff to seize the property entirely. A notice of this action was posted on the building last Friday.

As the auction for the U.S. Bank Center approaches, the situation reflects ongoing financial struggles within the local real estate market. Stakeholders are keenly watching how these developments will impact the area’s commercial landscape and the overall economic health of downtown St. Paul.