MMDC Properties LLC, a development division of Spokane Valley-based Meridian Construction Inc., plans to renovate a nearly 5,000-square-foot vacant building into leasable medical space on Spokane's lower South Hill.

Mark D'Agostino, president of Meridian Construction, says MMDC Properties recently bought the structure, formerly a Farmers Insurance claims facility at 26 E. Fifth, for $676,000. The one-level building is located just east of Division Street at the northeast corner of Fifth Avenue and Pine Street, next door to the Catholic Charities of Spokane headquarters.

D'Agostino says MMDC Properties plans interior and exterior improvements to attract a medical professional tenant, such as a dermatology or oncology group. He estimates the project value at between $80,000 and $200,000, depending on a prospective tenant's needs.

MMDC Properties has predevelopment documents under review with the city of Spokane for basic renovations, which are planned to include installing building siding and roofing, as well as new lighting, windows, doors, a new entry, and a new heating, ventilation, and air-conditioning system.

Other upgrades are expected to include a patient waiting room and examination rooms, depending on tenant needs, D'Agostino says.

Bernardo Wills Architects PC, of Spokane, has completed early project design work, but D'Agostino says further designs for specific interior spaces can be developed with a tenant's input. Meridian Construction plans to construct the tenant improvements, D'Agostino says.

"We'd like to attract a tenant so we can work with them on design," he says. "We've had a couple of groups look at it. We're hoping to target construction for early this summer."

If the project is started by this summer, he says, Meridian expects to finish the work in three to four months, in time for the tenant to move in by this fall.

"It's going to be pretty much a new building," he adds. "Right now, it has a clear open space. We're turning it into a redevelopment from an insurance building into a higher-end medical space."

He says the space has enough room for eight to 12 exam rooms, offices, and a nurses' station.

The property also has 32 parking spaces, he says.

D'Agostino says the leasing agent is Matthew Byrd, of Cornerstone Property Advisors LLC.