A St. Paul nonprofit focused on downtown development purchased the bank note for the U.S. Bank Center, taking control of a fourth property that formerly belonged to troubled landlord Madison Equities.
The St. Paul Downtown Development Corporation (SPDDC) launched a year ago as Madison, then downtown’s largest property owner, fell into financial distress and abandoned buildings. Since then, the nonprofit has acquired some of the most problematic properties in a central stretch of the urban core.
SPDDC president Dave Higgins declined to say how much the organization paid for the U.S. Bank Center note. Madison owed more than $25 million to its mortgage lender, First Interstate Bank of Omaha, according to court documents.
The 25-story U.S. Bank Center, located at 101 Fifth St. E., has been about 20% occupied since its namesake tenant vacated nine floors in 2024. In addition to offices and commercial space, the property contains a 348-stall parking ramp.
The SPDDC plans to evaluate the property, which a receiver has been managing, and its potential for redevelopment, Higgins said. The nonprofit could move to take ownership of the building, as it did with the nearby Alliance Bank Center last year.
Higgins said the U.S. Bank Center’s location on Fifth Street makes it “an important, logical asset” for downtown boosters’ revitalization strategy, which focuses on enlivening some of the central business district’s bleakest blocks.
“It’s another opportunity to stabilize and improve that connection between the east and west sides of downtown,” he said.
The building was previously slated for auction online later this month, with a starting bid of $1 million. Colliers broker John McCarthy, who marketed the property, said there was a lot of interest in it. Much came from outside the Twin Cities market, he added, including a recent call from an investor in Greece.
