Lumber Yard Supply Co., a Great Falls, Mont., building materials wholesaler, plans to open a branch in Spokane Valley.

The company has bought a 101,000-square-foot warehouse and 11 acres of property at 17524 E. Euclid, and plans to construct a building there for its offices, investing a total of about $5 million in the property, says Owen Robinson, president and CEO of Lumber Yard Supply. Robinson says the new branch is expected to open Jan. 5 and will be the company's third overall, but its first outside Montana.

The company hired Baker Construction & Development Inc., of Spokane, to design and construct the 5,000-square-foot office building, and Baker already has begun work on the project, Robinson says. The company also is having Baker construct an outdoor rack lumber storage area and a new rail spur to serve the branch, Robinson says.

The branch will employ 20 people initially, but it's projected to employ 60 people or more within three years, he says.

"This was a great growth opportunity we saw," he says. "Spokane is the type of area Lumber Yard Supply thrives in."

Lumber Yard Supply currently distributes building materials to retail lumber yards in Montana, North Dakota, South Dakota, and Wyoming through branches it operates in Great Falls and Billings, Mont. The Spokane Valley branch will allow the company to reach customers in Eastern Washington, northeastern Oregon, and North Idaho, and is expected to become the largest of its three branches within three years, Robinson says.

The person who will manage the new branch will be transferred here from the Great Falls corporate headquarters, and two other employees will be transferred from Montana. Additional employees have been hired, and the company is interviewing candidates for other remaining positions, he says.

Lumber Yard Supply bought the warehouse and property from Four Corners Capital LLC, of Spokane Valley. Robinson says that building won't require remodeling and will be used to store building materials.

Pristina Pine LLC formerly was located there and made wood parts for window and door manufacturers, but closed its doors earlier this year, blaming the closure largely on the slowdown in the national housing market.