Seeking greater prominence in downtown Spokane, Global Credit Union has bought a building in the citys core and plans to invest $1.3 million to convert it into a commercial real estate lending center and a full-service branch.


Global is remodeling the 12,500-square-foot building, which is located at the northeast corner of Riverside Avenue and Post Street, and plans to launch operations there next June.


The Spokane-based credit union bought the three-level structure from Empire Health Services for $710,000, says John R. Madri, Globals president and CEO. That brings the total project cost to $2 million.


With the building located one block from both the River Park Square shopping center and the recently reopened Davenport Hotel, Madri says, If there is a heart to this city, were right in it.


Global will use a total of 3,000 square feet on the buildings main floor, says Jack Fallis, Globals executive vice president and chief operating officer. He says 24-Hour Fitness will continue to lease about 3,400 square feet of floor space on the buildings main floor and in the basement for part of its downtown fitness club. He says Global is talking to a prospective tenant thats interested in leasing about 4,500 square feet of space on the buildings second floor. An about 1,600-square-foot space also is available on the main floor, and Fallis says he envisions a small restaurant going into that space, although Global isnt talking with any potential users currently.


Six to eight people will work at the new location, with some working both for the commercial real estate lending operation and the full-service branch, says Ron McKay, Globals vice president of member business lending. Its unclear, however, how many of those people will move there from Globals headquarters building, at 1520 W. Third, on the periphery of downtown, and how many will be new hires.


Globals real estate lending division includes a total of 15 loan officers who handle both residential and commercial real estate loans. McKay says some of those officers will move to the new location and will begin handling commercial loans exclusively.


Madri says Global also is considering adding new banking services at the new location, but he declines for now to disclose further details.


Globals commercial real estate lending portfolio currently includes 237 loans for a total of about $62 million, for an average loan of about $260,000. The commercial real estate division accounts for more than a quarter of the credit unions $211.4 million in total loans.


As of Oct. 31, Global had total assets of $250.7 million and total deposits of $215 million. The 48-year-old credit union has 19 branches, including 16 in the Inland Northwest and three on U.S. military installations in Italy. It employs 160 people and has about 60,000 members in all.


Empire Health Services, the Spokane-based operator of Deaconess Medical Center and Valley Hospital & Medical Center, had been given the building some years ago by a donor, but never used it for its own operations. It largely has been vacant for the past 10 years. A Pacific First Federal Savings branch previously occupied the structure.


Bales Construction, of Spokane, is the general contractor on the remodeling project, and Bernardo-Wills Architects PC, of Spokane, has designed the improvements.