Latest office-to-residential redevelopment opens in downtown St. Paul
Downtown St. Paul's Ecolab Tower getting new life
The Ecolab Tower in downtown St. Paul is getting new life. City leaders on Thursday held a ribbon cutting for the new $70 million Stella Apartment building, plus the return of a new grocery store. FOX 9's Emily Pofahl has more.
The openings together, business leaders say, represent a formula to solve higher than desired vacancy in the city's central business district.
Converting empty offices into homes
About 35% of St. Paul's central business district sits vacant, according to data from Collier. As commercial leases expired and fewer workers returned to offices after the pandemic, the city's skyline — however historic — largely stood empty.
What we know:
Developer Carl Kaeding spent three years transforming the 17-story former Ecolab building on Wabasha Street into 176 luxury apartments, now called the Stella Residences. Redevelopment cost $70 million, Kaeding said, and was one of the more challenging projects of his career. Redeveloping commercial buildings is often riskier and more expensive than building from the ground up — but worth it, Kaeding said.
"Every floor is different, every corner is different and so you have to approach it differently every single week," said Kaeding.
Still, he says the work has been deeply personal.
"At the end of the day, probably the most rewarding thing I've done in my 30-year career too," Kaeding said.
The Stella began leasing two months ago and is currently at about 20% occupancy, according to Kaeding. He considers the occupancy rate an encouraging sign that the building is on track toward the goal of 94–95% occupancy.
A grocery store returns — and what it means
About a half mile from the Stella, a new Aldi grocery store opened its doors — ending nearly two years without a grocery store in downtown St. Paul. For city leaders, the return of fresh food access is more than a convenience. It's a building block for future development.
"It's also going to make this a better place to invest because, again, it's a central need," Joe Spencer, Downtown Alliance President said about the Aldi opening.
Spencer says filling downtown with residents is the core strategy behind the city's revival push.
"Building our density. Building our population — that is what we really need to drive our vitality and the transformation of downtown St. Paul," Spencer said.
What we don't know:
Kaeding said the stakes are high if momentum stalls.
"Vacancy feeds vacancy. And you end up in a situation like this building was in, or like a couple others are in in St. Paul right now," he said. "It's time to stop the cycle."
The Source: FOX 9's Emily Pofahl reports.