The St. Paul Downtown Development Corporation (SPDDC) has acquired the distressed mortgage on the U.S. Bank Center building at 101 E. Fifth St., a move leaders say strengthens efforts to stabilize and revitalize the city’s downtown core.

SPDDC purchased the mortgage from First Interstate Bank of Omaha, closing on the transaction Dec. 30, 2025. While financial details were not disclosed, the organization confirmed the purchase was fully funded through private investment, with no public dollars involved.

“U.S. Bank Center is a key asset on Fifth Street, a property that will be critical to bridging the vibrancy of the entertainment district and Lowertown,” said SPDDC President Dave Higgins. “Acquiring this property’s debt gives the SPDDC additional influence on the continuing stabilization of the downtown core.”

The 25-story building includes more than 516,000 square feet of office and commercial space, along with a 348-stall parking ramp. City leaders praised the move as a strategic step toward long-term economic vitality.

Mayor Kaohly Her said a thriving downtown is essential to St. Paul’s future. “As we look to build a downtown that works for current and future generations, I am confident this acquisition will open more doors and possibilities,” Her said.

The purchase coincides with the launch of Reimagine Downtown St. Paul, a six-month community engagement initiative gathering input on the future of the downtown core. An online survey is open through Jan. 31, with additional meetings and events planned. Learn more at downtownstpaul.com/reimagine.