St. Paul Downtown Development Corporation completes full acquisition of U.S. Bank Center
The St. Paul Downtown Development Corporation has completed the acquisition and closed on full fee ownership of the U.S. Bank Center at 101 E. 5th St., finalizing a process that began with a late‑2025 mortgage purchase and closed Dec. 30, 2025, using only private funding. The 25‑story, roughly 516,000‑square‑foot tower (with a 348‑stall parking ramp) will now be directly controlled by SPDDC for leasing, redevelopment and tenant recruitment, a move Mayor Kaohly Her and SPDDC say will help bridge the entertainment district and Lowertown and stabilize the downtown core.
📌 Key Facts
- The St. Paul Downtown Development Corporation (SPDDC) completed the full acquisition of the U.S. Bank Center (101 E. 5th St.) when the transaction formally closed on Dec. 30, 2025, moving SPDDC from holding the mortgage to full fee ownership.
- SPDDC's acquisition closed after an auction process that began in late 2025; a planned auction had been delayed on Dec. 15, 2025, which briefly left the sale timing uncertain.
- The deal was fully funded with private investment; no public funds were used to complete the purchase.
- The tower is a 25‑story office and commercial building of roughly 516,000 square feet (reported as 516,171 sq. ft.) and includes a 348‑stall parking ramp.
- With full ownership, SPDDC will directly control leasing, redevelopment strategy, and future tenant recruitment for the building.
- SPDDC and Mayor Kaohly Her characterized the U.S. Bank Center as a “key asset” to help bridge the entertainment district and Lowertown and to stabilize St. Paul’s downtown core.
📊 Relevant Data
The overall competitive office space vacancy rate in downtown St. Paul was 31% in 2025, contributing to properties becoming distressed.
St. Paul BOMA Market Report 2025 — St. Paul BOMA
Vacancy rates in downtown Saint Paul have risen due to fewer employees commuting daily following the shift to remote work post-pandemic.
St. Paul BOMA Market Report 2025 — St. Paul BOMA
Before the pandemic, Downtown St. Paul carried only 12% of the citywide tax revenues compared to an average of 22% in peer cities.
Joe Spencer: St. Paul's budget — Pioneer Press
In St. Paul, the Asian population constitutes approximately 17.8% of the total population as of 2023, reflecting ongoing demographic diversification in the city.
St. Paul, MN — Data USA
In Minnesota, the poverty rate for Black or African American residents is 28.6%, compared to lower rates for other groups, highlighting racial disparities that may impact urban economic recovery.
People in Poverty in Minnesota: MNData Access — MN Dept. of Health
📰 Source Timeline (4)
Follow how coverage of this story developed over time
- Confirms that the St. Paul Downtown Development Corporation has moved from holding the mortgage to full fee ownership of the U.S. Bank Center office tower.
- Clarifies that the transaction has formally closed, completing the acquisition process that began with the late‑2025 mortgage purchase.
- Indicates SPDDC will now directly control leasing, redevelopment strategy, and future tenant recruitment for the 25‑story, 516,000‑square‑foot tower.
- The St. Paul Downtown Development Corporation (SPDDC) has purchased the mortgage on the U.S. Bank Center building at 101 E. 5th St.
- The acquisition closed Dec. 30, 2025, following an auction process that began in late 2025.
- The deal was fully funded with private investment and did not use any public funds.
- The building is 516,171 square feet with 25 floors of office and commercial space and a 348-stall parking ramp.
- SPDDC and Mayor Kaohly Her characterize the property as a 'key asset' for bridging the entertainment district and Lowertown and stabilizing the downtown core.
- The planned auction of the U.S. Bank Center in downtown St. Paul has been delayed/postponed.
- No immediate auction outcome; sale timing is now uncertain pending a reschedule.