Magnuson Hotels, of Spokane, has purchased a historic building near Gonzaga University from Spokane-area real estate developer Harry Green to house its headquarters and plans to hire an additional 20 employees once it moves in there in October.

The 8,600-square-foot building is located at 525 E. Mission, and though Magnuson Hotels declines to disclose the price of the transaction, Spokane County records indicate that a sale of the property for $550,000 was recorded May 5. Green had purchased the building in late 2003 for $310,000 to use for the offices of Harry A. Green & Associates Inc. Green declines to comment on where that company's offices are located now.

Magnuson Hotels is a rapidly growing company that provides reservation management services to independent hotels. The company, which has been leasing about 5,000 square feet of space at 605 E. Holland, on Spokane's North Side, currently employs 40 and is "literally bursting out of that space," says Melissa Magnuson, who owns the business with her husband, Tom.

Melissa Magnuson says the company is preparing to expand its work force, and the new location will make it more convenient to offer internships to Gonzaga University students in the areas of Web design, programming, database management, and financial analysis.

Magnuson Hotels has hired Nystrom Olson Collins Inc., of Spokane, to design a planned renovation of the building, and Kearsley Construction, of Spokane, to do the work, Magnuson says. She declines to disclose the estimated cost of the renovation project, but says it will be significant.

"We feel strongly about preserving the historic character" of the building, Magnuson says. "We'll be taking some features back to the original building," such as removing some newer interior office walls, she says.

The building is a Carnegie library building, known as the Heath Branch, which was built in 1913 with a grant from iron and steel magnate Andrew Carnegie, according to the Spokane historic register. It's one of three such libraries in Spokane listed on both the local and national historic registries.

In addition to renovating the interior of the building, the company plans to upgrade the communications systems.

"At the end of the day we're a technology company. We have to have the best in the building," Magnuson says.

Raleigh Johnston, of Pinnacle Realty Inc., represented Magnuson Hotels in the transaction, and T.J. Meenach represented Green.