A
ndy Babula, director of the University of St. Thomas real‑estate program, told the Minnesota Star Tribune how Madison Equities’ collapse has exposed deep problems in downtown St. Paul. He said the firm’s rapid acquisitions, massive debt and concentration of key assets hastened the commercial core’s decline.

    At its peak, the husband‑and‑wife team of Jim Crockarell and Rosemary Kortgard owned 1.6 million square feet of downtown office space, several apartment buildings and parking ramps. They valued the holdings at over $200 million, including the iconic First National Bank Building with its bright neon‑red “1st” sign. The pandemic emptied office tenants, turning the heavily mortgaged portfolio into a “Jenga” tower that collapsed. Many properties are now foreclosed, boarded up, or sold for less than the debt owed.

    The couple secured loans from a mix of local and regional banks, often personally guaranteeing them. If the real‑estate collateral failed, the owners would be liable for the debt. Babula noted that such arrangements are common: banks cap exposure to a single client or property type, while personal guarantees can secure larger or more favorable financing, especially for speculative deals.