"Right now we have double classes in certain grades," DiBacco said.
In addition to more classrooms, he said the school will explore starting pre-school and after-school programs.
He said the building should be ready for classes in the 1999-2000 school year. The diocese will conduct an engineering analysis of the building and could begin renovations next summer.
"The church wanted it and we thought it was a win-win situation," Thomas Rice of Stephen Street Associates said Sunday.
The Clock Building was built in 1990-91 and is part of the Blue Ridge Outlets complex, he said.
He said businesses in the Clock Building will be offered the chance to relocate to other outlet buildings as space becomes available.
Businesses in the Clock Building include Toy Liquidators, London Fog and Carter's.
A 1994 appraisal put the value of the Clock Building at $3.4 million, Rice said. He said the sale is not indicative of any problems with the outlet business.
"We intend to continue in the outlet business" and are looking at possible expansion, Rice said. He said Stephen Street Associates has had a long-standing relationship with the school because it is located adjacent to the property.