SOUTH BEND - Work has begun on the second phase of a $90 million joint effort between the University of Notre Dame and Indianapolis-based Kite Realty (NYSE: KRG). The university says Phase II of the Eddy Street Commons mixed-use development is slated to be complete by mid-2020.

The second phase of the project includes 8,500 square feet of restaurant space, a stand-alone grocery store, a new Robinson Community Learning Center, 22 single-family homes, two market-rate apartment buildings, and two graduate-style apartment buildings, which are set to open in mid-2019.

The first phase of the project, which includes 170,000 square feet of retail, restaurant and office space, 266 apartments, 123 condos, 78 townhomes, a nearly 1,300-space parking garage, a 119-room Fairfield Inn & Suites, and a 164-room Embassy Suites, is nearing completion. Notre Dame says the retail, office and apartments are 100 percent leased and the condos and townhomes are all sold.

"Phase II will complement the look and feel of Phase I and the surrounding neighborhood through its architecture, site design and scale," said Matt Gabet, senior vice president of operational strategy with Kite Realty. "Because of our partnership structure and collective determination (with Notre Dame), we were able to work through issues, solve problems and deliver the project you see today. Without our third partner, the city of South Bend, both phases would never have gotten off the ground. Unlike a lot of cities, South Bend has been forward-thinking in its approach and use of public/private partnerships to drive investment and growth."

The university says the Eddy Street Commons project, located south of the Notre Dame campus, is part of a larger effort to improve the Northeast Neighborhood in South Bend. 

"Phase I of Eddy Street Commons far surpassed the expectations residents had. The project brought great excitement and a much-needed commercial district within walking distance for many of us," said Bill Stenz, president of the Northeast Neighborhood Council, one of two neighborhood groups in the area. "Phase II will continue this progress."