Sunshine Health Facilities Inc., of Spokane Valley, plans to expand Sunshine Terrace assisted-living facility with a $2.5 million addition, says Dr. Nathan Dikes, the company's CEO.

The 24,000-square-foot addition to Sunshine Terrace, at 10428 E. Ninth, will have three stories and a full basement, Dikes says. The addition will have 29 semiprivate units with a total of 58 beds, he says.

Sunshine Terrace currently is operating at capacity with 70 beds in its 99-year-old building, but will reduce the number of residents in that building when the addition is complete, he says.

"We'll be transitioning 30 residents from the existing facility into the new building," Dikes says, adding that the expansion will increase Sunshine Terrace's capacity by 28 beds to bring its total capacity to 98.

Sunshine Health is working with the city of Spokane Valley and to complete the permitting process and hopes to start work this month, he says. Construction of the addition is expected to take about a year.

Tamarack Ridge Construction LLC, of Spokane Valley, is the contractor on the project, and Kirkwood Rodell & Associates designed it.

Dikes says he hasn't decided what to do with the space that will be vacated in the Sunshine Terrace building.

"The 1914 building has lived its life," he says.

Sunshine Terrace is part of the 7-acre Sunshine Health Facilities campus just east of Valley Christian School. The complex includes the 84-bed Sunshine Gardens skilled-nursing facility; Sunshine House 30-unit independent-living boarding facility; two adult family living houses; and Sun-shine Physical Therapy & Fitness Center.

Sunshine Health also operates Sunshine Home Health Care LLC, a Medicare-accredited in-home health care provider.