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owntown St. Paul's largest property owner, Madison Equities, is still grappling with financial woes despite recent efforts to shed some of its debt-ridden properties. The company's founder, Jim Crockarell, passed away earlier this year, leaving his wife Rosemary Kortgard in charge of more than a dozen St. Paul properties.

    Madison Equities has been embroiled in litigation over millions of dollars in debt, with several lenders seeking to recoup their losses. In the past month alone, the company has relinquished three buildings to lenders: the Degree Apartments sold to Minnwest Bank for $9.5 million, and the Empire Building and Endicott Arcade sold at a sheriff's sale to Merchants Bank for $1.3 million.

    First Interstate Bank is also seeking $24 million owed on the mortgage of the 32-story U.S. Bank Center, and has asked the court to appoint a receiver to protect the building's value during the foreclosure process. Madison Equities' attorney declined to comment on the litigation.

    The company's struggles are largely attributed to the COVID-19 pandemic and rise of remote work, which have dealt a blow to office buildings across the country. Several corporate and government tenants downsized or moved out, leaving Madison Equities with debt payments looming. In April, Kortgard listed the company's entire downtown office portfolio in an attempt to find a buyer, but no suitable offer emerged.

    As lenders move to cut their losses, several of Madison Equities' properties are at risk due to unpaid utility bills and abandonment. City officials have condemned one building, the Lowry Apartments, following a water leak that forced tenants to relocate. Receivers have been appointed to manage two other properties, including the Park Square Court Building, which went into bankruptcy earlier this year.

    Madison Equities still owns several prominent downtown St. Paul buildings, including the First National Bank Building and the Alliance Bank Center, as well as parking ramps and a restaurant building in the Cathedral Hill neighborhood. The company owes at least $2.8 million in property taxes and late penalties across its portfolio. City leaders have publicly criticized Madison Equities for its abandoned and poorly maintained properties, which they say have negatively affected downtown St. Paul.