"One of our concerns and commitments to the community was to assure that the former Sovereign Bank building was put to productive use as soon as possible," says John P. Hamill, chairman and CEO of Sovereign Bank, New England Division.

The building was built in 1897 and was originally the headquarters of New Bedford Institution for Savings. The building will be renamed Union Square and will be converted into office space by Whelan Associates, after they originally considered converting it into a hotel, according to William N. Whelan, founder of Whelan Associates.

"We examined the possibility of converting the bank into a small 48-room hotel, but determined that the $7-million investment to do so could not be supported by such a small number of rooms," he says. "Accordingly, we chose to redevelop the building for first-class office space. We are evaluating the possibility of converting the main lobby into a 4,000-sf function and exhibit space."

Sovereign has a long-term lease on the facility, which Whelan Associates has assumed. Sovereign has agreed to bear approximately $1.9 million in obligations under the original lease, which is held by an undisclosed out-of-state trust. Whelan Associates will be responsible for all other costs, including $1.5 million in renovation cost and approximately $250,000 in yearly expenses on the property.

The subleasing transaction was handled in-house by Sovereign and Whelan Associates representatives. They are expected to announce a significant tenant for the facility this week.