Demolition started Tuesday on the former Mark Motors site at 2020 E. Northwest Highway in Arlington Heights near the Mount Prospect border.

Retail, restaurant and service providers will use a new building of approximately 15,000 to 18,000 square feet on the 2.1-acre site, said Nick Papanicholas of Nicholas & Associates, the developer. The area is bounded by Northwest Highway, Gregory Street and Waterman Avenue.

Nothing has been finalized yet, but vendors are interested in the site, and the design will be upscale, said Papanicholas.

His companies, based in Mount Prospect, have built major projects including the Vail Avenue parking garage in Arlington Heights and the Pace administration center on Algonquin Road in Arlington Heights. DeKalb High School is a current project.

The developer's Web site is Nicholasquality.com

Cushman and Wakefield of Illinois, the real estate company involved in the transaction, announced last month that the property had sold for $1.3 million.

Charles Des Rosiers was the agent, and MBH Motors Inc. the seller. The site had housed a Mercedes-Benz dealership.