Panattoni Development Co. has broken ground on a 111,677-square-foot expansion to the former Washington State Liquor Control Board’s warehouse at 4401 E. Marginal Way S. in Seattle.

Skyline Distribution Center is being developed with Prudential Insurance Co., and is scheduled to be finished by the fourth quarter of this year.

The expansion was designed by Craft Architects. Sierra Construction is the general contractor.

The team also includes Barghausen Consulting Engineers, civil; Shutler Consulting Engineers, structural; and JSH Properties, property management. John Vernon, Bob Swain and Tamir Ohayon with NAI Puget Sound Properties are the leasing brokers.

Cleanscapes will be the facility’s first tenant, occupying about 76,000 square feet in the existing warehouse to operate a clean recycling Material Recovery Facility.

Panattoni said an unnamed tenant is negotiating to lease about 115,000 square feet in the existing warehouse.

Vernon of NAI Puget Sound Properties said in a press release that construction of this much warehouse space “is virtually unprecedented within the city of Seattle due to the short supply of developable land.” He said he expects the building to be leased before completion.

Panattoni said clear heights in the existing warehouse exceed 60 feet in the center and more than 40 feet at the dock doors and rear. The expansion will be 30 foot clear with an ESFR fire sprinkler system and a 120-foot truck court for truck maneuvering.

Last year, Panattoni paid $23.4 million for the Liquor Control Board’s old distribution center. The price translates to roughly $104 per square foot for the 224,000-square-foot building, one of the highest prices for a distribution center in King County at the time, according to real estate researcher CoStar Group.

The state’s equipment, tools, racking, fork lifts, conveyor and furniture were purchased and removed by Conesco form Centennial, Colo.

Panattoni is based in Newport Beach, Calif., and is one of the most active industrial developers in the area. It has projects in South Seattle, Kent Valley and Pierce County.