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809 E Chestnut, Bellingham WA 98225 (2025). Source: Google Maps

PeaceHealth to list South Campus property for sale

BELLINGHAM, Wash. – PeaceHealth announced Tuesday, January 27th, that it plans to list its South Campus property for sale. The site, widely recognized as the location of the former St. Luke’s Hospital, is being divested as the health system shifts its focus and resources to the St. Joseph Medical Center main campus.

According to today’s press release, the sale is part of a strategy to align efforts around a modernized main campus, which includes ongoing major projects such as the new Peter Paulsen Pavilion.

PeaceHealth has partnered with real estate advisory firm Jones Lang LaSalle (JLL) to guide the sale process. They are seeking proposals from developers that “support local priorities.”

About the Property
The South Campus spans several acres across three parcels. It currently houses:

  • The former St. Luke’s Hospital building (currently vacant).
  • An apartment complex.
  • A professional office building.
  • extensive parking areas.

PeaceHealth noted that while the former hospital structure is no longer suitable for use, the surrounding parking areas provide a “blank slate” for redevelopment.

“With major investments already underway at the St. Joseph main campus—including the new Peter Paulsen Pavilion—this step allows PeaceHealth to concentrate resources where they will have the greatest impact on patient care and community health,” said Chuck Prosper, Chief Executive, PeaceHealth Northwest.

PeaceHealth states they are engaging with key partners, including the City of Bellingham and local nonprofit organizations, to keep them informed regarding the future of the site.


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One Comment

  1. Irene Irene January 28, 2026

    Too bad St. Lukes isn’t still here.

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