Prof. Edward Adams Quoted in Star Tribune Regarding Court Ruling That a St. Paul Property Owner is Responsible for $2 Million Commercial Loan

Professor Edward Adams, Howard E. Buhse Professor of Finance and Law, was quoted in the Star Tribune about a Ramsey County District Court judge ruling that the widow of the founder of Madison Equities, downtown St. Paul’s largest property owner, owes a bank more than $2 million for a commercial loan she personally guaranteed. The order came one week after the lender that recently foreclosed on the Lowry Apartments separately filed a lawsuit against Rosemary Kortgard, saying she owes more than $8 million as a guarantor of the property’s mortgage. Across the country, office buildings are bleeding tenants due to the rise of remote work, leaving many property owners unable to pay off debt becoming due which has led to a rash of foreclosures and discount sales. Prof. Adams said, “Situations like this are not shocking with the pandemic and changing state of commercial real estate. So what’s your way out as a borrower? You can refinance if you can find a lender. Or you may end up in personal bankruptcy.”