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Viewpoint Construction Software plans to expand into a historic building across the street from its Portland headquarters on Southeast Water Avenue to accommodate a growing number of employees.

A $20 million renovation will convert the 60,000-square-foot building at 1510 S.E. Water Ave. into office space for 150 to 200 employees in the company’s software and product management departments, Viewpoint President Jim Paulson said.

The software company has outgrown its 100,000-square-foot headquarters, where 275 of its 440 employees work, and is eager to expand into another building, he said.

“We don’t have many seats over there,” Paulson said. “We’re definitely going to need (the additional space).”

Vancouver, Wash.-based developer Killian Pacific will lease the building to Viewpoint.

Noel Johnson, vice president of Killian Pacific, said the developer will soon finalize a deal to purchase the property from Portland General Electric. PGE constructed the three-story building in 1909 as a warehouse and railroad depot, he said.

Killian Pacific plans to renovate the building’s exterior, lobby and other common areas, as well as replace plumbing, electrical and fire suppression systems, Killian Pacific design and development manager Adam Tyler said.

“All of the systems are severely dated,” he said.

Portland-based Mackenzie will serve as the architect for the renovation, Johnson said, and Viewpoint will be responsible for tenant improvements.

PGE, which occupied the building until recently, has started environmental cleanup after years of industrial use, Johnson said. After that work finishes this fall, Killian Pacific will start the renovation, which is expected to wrap up in summer 2014.

Paulson said Viewpoint hopes to move into the building in August or September 2014. Company officials are seeking an architect to handle the tenant improvements, he added.

Viewpoint’s current headquarters building is rated Leadership in Energy and Environmental Design gold; officials are hoping that the renovated building can achieve a LEED platinum rating, Paulson said.

Sustainable features planned in the ex-PGE building include a highly efficient heating and cooling system and a bio-swale in the parking lot, Tyler said.

Viewpoint considered building a sky bridge to connect its current headquarters to the expanded portion across the street, but couldn’t secure necessary permits, Paulson said. The company now plans to create connections to the nearby Hawthorne Bridge so that employees can use the span rather than cross the street between the two buildings, he said.

Paulson said he’s hoping that the expansion will help Viewpoint retain and attract valuable employees.

“We hope it will be a real showcase,” he said.

Skip Newberry, president of Portland-based Technology Association of Oregon, said Viewpoint’s plans are great news for the state’s tech industry. It’s thrilling, he added, that the company chose to stay rooted in Portland, on the east side of the Willamette River.

“It’s a fantastic development,” Newberry said. “I think as we see more expansion I wouldn’t be surprised to see other companies follow their lead. There’s some interesting development opportunities on the east side. I think it will be something to watch.”