Spokane developer Steve Schmautz and his wife, Tresa, have bought an office-warehouse building in Spokane Valley thats currently home to InCyte Pathology Inc., and they plan to renovate the structure into a speculative office-retail building after the longtime pathology practice moves into new quarters this fall.


The 45,500-square-foot structure is located at 11604 E. Indiana, just west of the Interstate 90-Pines Road interchange, and is visible from I-90.


Freeway-visible property is getting to be more desired space, says Schmautz, who also owns SDS Realty Inc., of Spokane. Hopefully, we can capitalize on that.


Freeway Investment Co., of Spokane, sold the building to the Schmautzes, who bought it through a company they formed called Indiana LLC.


Schmautz says he plans to begin an exterior rehabilitation of the structure soon that will involve painting it and installing new lighting and awnings. He says he wants to update the look of the building, which was constructed in the mid-1970s.


InCyte Pathology currently leases about 60 percent of the structure, but is developing a new building for its operations at 13103 E. Mansfield, in the Mirabeau Point area. Terri Montano, InCytes chief operating officer, says the 48-year-old company plans to move into that facility next month. Pathology Associates Medical Laboratories Inc., of Spokane, had been located in the building on Indiana also, but moved to its current location on Spokanes South Hill about four years ago.


Once InCyte has moved, Schmautz says hell start making interior improvements to the structure. He doesnt have any tenants lined up yet to take space in the building, but says he hopes to attract office users and perhaps retail users.


In all, improvements to the structure will cost between $500,000 and $1 million, he says.


He declines to disclose the terms of the building purchase, which he handled along with Mark Lucas and Tracy Lucas, both of Kiemle & Hagood Co.