Manchester bank buys building housing U.S. Bank

CEDAR RAPIDS - U.S. Bank has a new landlord at its Westdale Mall location: F&M Bank of Manchester.

F&M Bank President Michael Dunn said Westdale Associates, which owned the 3,117-square-foot building at 2350 Edgewood Rd. SW, wanted to sell it, and he felt it was a good investment.

“U.S. Bank has a lease through Oct. 31, 2015,” Dunn said. “We plan to open a branch at that location after they vacate the building. We want a good west side location and the pricing was right.

“The lease will offset some of our cost before we move into the building. We feel it will give us a good presence.”

The Cedar Rapids Assessor's Office lists a sale price of $750,000 on Oct. 14 for the building, which was constructed in 1979 for American Federal Savings & Loan Association. The latter closed its office in April 1988 and Merchants National Bank, a predecessor to U.S. Bank, signed an 11-year lease in 1989.

Steve Caves, regional president and division manager of U.S. Bank in Cedar Rapids, said the bank has not decided what it will do when its lease expires.

“We're having discussions internally about our options, but we haven't made any decisions because our lease goes on for several years yet,” Caves said. “We know we're still going to be in the area.”

Dunn said F&M Bank is still trying to decide the future of its branch at 200 First St. SW. The drive-up lanes have reopened for business since the first floor of the building was restored after the June 2008 flood, but no decision has been made about reopening the office to foot traffic.

Dunn said the bank is waiting to hear definitive word on a flood protection plan for the west side of the Cedar River before making a decision on the future of the branch.

Wells Fargo Bank also is waiting to hear the details of a flood protection plan before moving ahead with restoration of its shuttered office at First Street and Third Avenue SW.