South Bend moves to purchase 156-year-old building in East Bank neighborhood

SOUTH BEND, Ind. (WNDU) - The City of South Bend is poised to gobble up some more office space.

For the second time this year, the redevelopment commission agreed to purchase an office building.

Back in March, the commission moved to buy the River Glen Office Complex for $3.2 million. This week, the commission agreed to spend $300,000 to buy an office building in the East Bank neighborhood.

The building in the East Bank has stood in the 400 block of E. Madison Street for 156 years. It started out as a factory where Singer sewing machines were made. It was last used as office space by mental health services provider Oaklawn.

When Oaklawn moved out, the city moved in to make the buy.

“Post pandemic office space just isn’t as valued as it used to be, so we’re hoping to move it to its next phase you know, whatever that might be,” said Assistant Director of Growth and Opportunity Joseph Molnar.

It’s not that city officials feel the office market will make a comeback, it’s more like trying to prevent the downturn from dragging down development around the city’s greatest asset. The building has 3.3 acres of waterfront and lies on the city River Walk.

“Definitely, you know we only have one river. It’s one of the best assets the city has,” Molnar explained. “It’s something that we know everyone enjoys and we want to be able to highlight that asset instead of hide it behind a bunch of office buildings.”

When the sale is finalized, the city will issue a request for proposals to developers in the hopes of landing something with a mix of retail and residential.

The building is unique in that a portion is still being leased by a daycare center.