Liberty Lake-based real estate development company Greenstone Corp. has applied for a building permit to construct its first commercial project within the Kendall Yards urban village north of downtown.

Greenstone estimates the value of the building, a 5,200-square-foot, three-tenant structure to be called the Cedar Park Commercial Building, at $1.5 million.

The project site is in the eastern portion of Kendall Yards and on the south side of Summit Parkway, which will be the main boulevard running east and west through the 78-acre development. Greenstone paved a portion of Summit Parkway near the project site last week, says Wayne Frost, Greenstone vice president.

Ponderosa Ridge Homes LLC, a Greenstone subsidiary, will be the contractor on the project, which was designed in-house, Frost says. Another subsidiary, North Gorge Commercial Partners LLC, will own the structure, he says.

Frost says Greenstone hopes to begin constructing Cedar Park Commercial Building within about a month and, weather allowing, complete it early next spring. The project currently is in the city of Spokane's plan-review stage.

Frost says Greenstone's Kendall Yards sales office will occupy about 1,300 square feet of space, which will be the smallest bay, located in the northeast portion of the building, facing Summit. Another tenant space, in the northwest portion of the structure, also will face Summit, site plans show.

The largest tenant space, which will take up most of the south half of the structure, will face the planned Centennial Trail alignment, where it will overlook the Spokane River gorge, plans show.

Greenstone acquired the Kendall Yards property in November 2009. Since then, the company has built and sold more than 40 residential units in the development, most of which are townhomes. On its website, Greenstone currently is marketing 18 additional townhomes in Kendall Yards, which are in various stages of design and construction with asking prices ranging from $158,000 to $402,000.

Other commercial projects in the planning stages, but not yet submitted to the city for plan review, include two office buildings with a combined value of $10 million, and a grocery store.

The company has said it envisions developing a total of 1,000 residential units and 600,000 square feet of commercial space in Kendall Yards within 15 years.