May 31–SOUTH BEND — The Magnuson Grand Hotel, located in the Chase Tower downtown, is closing.
Andrew Nemeth, a local real estate broker and consultant who also manages the 25-story building, confirmed the news Friday.
“The hotel is scheduled to close for extensive building and hotel renovations on June 13,” Nemeth said in an e-mail.
Nemeth said Washington Square Realty, which owns the building, is working to bring in a new hotel to replace the Magnuson.
“We are in the due diligence process of interviewing and working with new hotel franchisers to determine the best fit for the market, the building and the central business district,” Nemeth said. “We are pleased with the process thus far and see this as a very positive step.”
Nemeth said he could not discuss a specific time frame for the new hotel, nor the brand or brands that are under consideration.
That said, “I can confirm that the building has had years of deferred maintenance by previous ownership,” he said, “and that we have begun the long process of cleaning up the mess.”
Nemeth reportedly told WSBT-TV that 11 of the hotel’s 18 employees have been let go. The rest are maintenance staff who will continue to work during the transition period.
He also told WSBT that the hotel has about 180 rooms.
New York-based Washington Square bought the Chase Tower out of foreclosure in March. The company plans to invest about $5.8 million in the building over the next two years.
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Twitter: @ErinBlasko
