The Sullivan Group LLC, a development company here headed by Spokane real estate executive Mark Pinch, has broken ground on an about $2 million retail center in the Spokane Valley.


Pinch says the project, which is located at 506 N. Sullivan, is expected to be completed by year-end.


It will include 12,300 square feet of space and up to seven tenant bays.


Contractors Northwest Inc., of Coeur dAlene, is the general contractor on the project, and Wolfe Ballantyne Studio Architects, of Spokane, designed it.


Two tenants have agreed to lease space in the planned building, and Pinch says hes negotiating leases with two other possible tenants.


Starbucks Corp., of Seattle, has agreed to lease about 1,700 square feet of space at the north end of the retail building for a new coffee shop. The plann-ed store will be its 10th in the Spokane-Coeur dAlene area, and will include a drive-through window.


The other signed tenant is exercise equipment retailer Exercise Equipment Center Inc., of Woodinville, Wash., which has agreed to take 2,200 square feet of space. The store here will be the companys first in the Spokane area and its 15th overall, Pinch says.


He says a restaurant and a telecommunications retailer are considering leasing space in the project, but declines to name them for now.


Pinch says the planned retail building is located on the east side of Sullivan just north of a Car Toys outlet.


The structure is designed in what Pinch calls a nouveau industrial look, which will include the use of a lot of industrial steel on the exterior and high ceilings inside with exposed steel rafters.


The front of each tenant bay will have patio space, and tenants will have the option of covering part of that area.


Pinch also is president of Tomlinson Black Commercial Inc.