St. Paul group takes over U.S. Bank Center tower
St. Paul Downtown Development Corp. closed on the purchase of the U.S. Bank Center office tower in downtown St. Paul on June 30, 2026, taking control of the property.[1]
SPDDC completed the deal after acquiring the building's bank note from First Interstate Bank of Omaha last year.[1] The 26-story tower totals about 361,000 square feet and includes a 348-stall parking ramp, a skyway connection and on-site fitness and conference amenities. U.S. Bancorp now leases roughly 17,000 square feet in the tower after giving up about 118,000 square feet in 2024.[1]
Madison Equities founder Jim Crockarell died in January 2024, and his widow, Rosemary Kortgard, put the company's 10-building downtown St. Paul office portfolio up for sale in May 2024. SPDDC had already begun buying distressed Madison Equities assets, including condemned properties such as the Alliance Bank Center, and in December 2025 purchased the troubled mortgage on U.S. Bank Center from First Interstate.
The purchase hands control of a major downtown tower to a local development nonprofit that has been buying troubled properties in the city. SPDDC's move shifts ownership into local hands as the group seeks options for stabilizing and repurposing downtown office stock.
The mainstream summary does not address the alarming office vacancy rates in downtown St. Paul, which reached 39.5% at the end of Q3 2025, with approximately 1.875 million square feet vacant out of a total inventory of 5.77 million square feet. This stark statistic highlights the broader challenges facing the downtown area, as the summary frames the SPDDC's acquisition primarily as a positive local ownership shift without acknowledging the significant economic distress that necessitated such a move. According to Cushman Wakefield, the vacancy rate was 33.3% in Q1 2026, indicating a persistent struggle for the commercial real estate market in the region, which the summary overlooks.
Additionally, the mainstream account does not mention the structural factors contributing to these high vacancy rates, such as the long-term impacts of remote work adoption accelerated by the COVID-19 pandemic. A report by the Pew Charitable Trusts outlines how this shift has led to reduced office demand and financial distress for building owners, creating a 'doom loop' that diminishes the attractiveness of downtowns for both retailers and residents. This context is crucial for understanding the significance of SPDDC's acquisition beyond merely a transfer of ownership, revealing it as part of a broader strategy to stabilize a struggling urban landscape.
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📊 Relevant Data
Downtown St. Paul office vacancy reached 39.5% at the end of Q3 per Colliers data and stood at 33.3% in Q1 2026 per Cushman Wakefield, with roughly 1.875 million square feet vacant in the St. Paul CBD out of 5.77 million total inventory.
No end to the high vacancy rates in Twin Cities office market; Cushman Wakefield Minneapolis Q1 2026 Office MarketBeat — RE Journals; Cushman Wakefield
📌 Key Facts
- SPDDC closed on the purchase of U.S. Bank Center in downtown St. Paul on June 30, 2026 after acquiring the building’s bank note from First Interstate Bank of Omaha last year.
- The building is a 26‑story, 361,000‑square‑foot office tower with a 348‑stall ramp, skyway connection, and amenities like a fitness and conference center.
- U.S. Bancorp currently leases about 17,000 square feet in the tower after giving up roughly 118,000 square feet in 2024, reflecting a major downsizing.
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