December 12, 2025
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Judge OKs asset pursuit in Normandale debt case

A judge ruled MidWestOne Bank can pursue the personal assets of a New York real‑estate executive who guaranteed $36 million in loans tied to a Normandale Lake office tower in Bloomington. The decision advances the bank’s recovery efforts in the high‑stakes commercial real‑estate dispute involving a prominent Twin Cities property.

Legal Business & Economy

📌 Key Facts

  • Judge’s ruling allows MidWestOne to go after the guarantor’s personal assets
  • $36 million in loans are tied to a Normandale Lake office tower in Bloomington
  • Case centers on a major Twin Cities commercial property with ongoing financial distress

📊 Relevant Data

The office vacancy rate along the I-494 corridor in Bloomington, Minnesota, where the Normandale Lake Office Park is located, was 24.4% in the first quarter of 2025.

Another of Bloomington's Normandale Lake Office Park towers in foreclosure suit — Star Tribune

The overall office vacancy rate in the Twin Cities metropolitan area was 22.1% in the third quarter of 2025, with higher rates in downtown areas and Class B buildings.

Twin Cities office vacancy holds steady at 22% — Finance & Commerce

Downtown Minneapolis had an office vacancy rate of 28.7% in the first quarter of 2025, compared to 23.3% for the broader Midwest and 19.5% nationally.

What's Behind the Commercial Real Estate Mess in Minneapolis? — Twin Cities Business

A tower in the Normandale Lake Office Park sold at a 96% discount in 2025 due to financial distress caused by an out-of-town investor's complicated maneuver.

Why a Normandale Lake office tower sold at a 96% discount — Axios

Bloomington, Minnesota's population was 89,987 in 2020 and projected to be 88,974 in 2025, showing a slight decline.

Bloomington Demographics | Current Minnesota Census Data — Minnesota Demographics

📰 Sources (1)

MidWestOne Bank wins key ruling in $36M Normandale Lake tower dispute
Minneapolis / St. Paul Business Journal December 12, 2025