USAA Real Estate Co., a San Antonio-based developer, has begun construction of a $20 million, 908,000 sq. ft. regional distribution center for Sweetheart Cup in University Park, Ill. Completion of the facility is slated for early 2003. St. Louis-based Clayco Construction Co. is the designer and general contractor on the project.

The one-level building will be the first project in USAA Commerce Center, a 250-acre industrial park located 20 miles south of Chicago. The distribution center is the third project that Clayco has undertaken for Owings Mills, Md.-based Sweetheart, a manufacturer of disposable food-service items. Clayco designed and built a more than 1 million sq. ft. regional distribution center in Hampstead, Md., and a 250,000 sq. ft. manufacturing and distribution center in North Andover, Mass.