UP to 20 jobs are to be created with the opening of a new mini-supermarket.
Gentoo is building four new shops, including on-site parking, at Teal Farm in Washington.
The Wearside firm has been working with environmental regeneration specialist Hellens Group since January, as part of a major mixed-use project.
It has now confirmed one of the retail units will be a Sainsbury’s Local store, due to open in August.
“It’s fantastic to be part of this new development,” said Sainsbury’s senior acquisitions manager Christian Wakelin.
“Sainsbury’s Local stores provide quality and choice for local people in a convenient location, and our new store will also create up to 20 new jobs. Sainsbury’s stores play an active role in the communities they serve and this will certainly be the case in Teal Farm.
“We are looking forward to welcoming our first customers when we open in August.”
Hellens Group chief executive Gavin Cordwell-Smith added: “Our mixed-use development at Teal Farm is one of the largest private sector-led regeneration projects in the North East.
“The retail centre at Teal Farm Village will complement our development of over 500 new homes and 5000 square metres of offices and industrial units at an already popular location within Washington.
“We are delighted to have appointed Gentoo Construction, and it is particularly pleasing to appoint a local company which will help support local jobs.”
Gentoo Construction director Allan Thompson said: “Gentoo Construction has a diverse range of skills and expertise across a number of areas as illustrated by our work with Hellens in the commercial sector.
“It has been interesting having an expert client and the partnership has worked really well for both parties.
“Gentoo aims to improve people’s art of living and these new retail facilities situated closely to a new residential area will help create real added value to this newly created community.”