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The Monastery of the Madonna delle Grazie was built by Pietro Gambacorta in 1672, on the ruins of the Church dedicated to Santo Stefano; and next to the homonymous Church, built by Carlo Gambacorta in 1575. The church had a single nave with seven altars, the high altar and three altars on each side; it collapsed in 1838. Only the façade from the precious portal remained standing, which today constitutes the entrance to the sacristy of the Church of Santa Croce.
The monastery was the seat of the Order of the Fathers of Santa Maria delle Grazie, until the suppression of the monastic orders decreed in 1806 by Giuseppe Bonaparte, King of Naples. Then it became first Giudicato Regio, then Gendarmeria. When the gendarmerie was suppressed, its premises were occupied by the Carabinieri Barracks and the prisons.
In the ancient monastery, still today the Town Hall and the barracks of the Carabinieri are located.