Western Washington University (WWU) and PeaceHealth report reaching a purchase-and-sale agreement for the former St Luke’s Hospital property and related parcels, according to a Western Washington University press release issued on October 16, 2026.
The $12.5 million transaction is funded through an unrestricted grant from The Foundation for WWU & Alumni.
The transaction transfers three parcels from PeaceHealth to WWU.
- parcel A: St Joseph South Campus Hospital Facility at 809 E Chestnut Street, including the former St Luke’s Hospital building and an adjoining parking lot
- parcel B: Chestnut Professional Building at 800 E Chestnut Street
- parcel C: 705 E Maple Street apartment complex, an eight-unit residential building managed externally
The property is located at the intersection of Holly, Jersey, and Ellis streets in Bellingham.
Western Washington University stated it plans to utilize the site for a proposed College of Health Sciences and associated facilities. The university reported it also plans to develop a community clinical hub for physical and behavioral healthcare at the site in partnership with regional providers.
As part of the terms of the agreement, PeaceHealth will acquire about 2.5 acres on the south end of WWU’s Lincoln Street Park and Ride facility. The overall park-and-ride parcel is approximately 8 acres. PeaceHealth stated it will keep the acquired 2.5-acre parcel undeveloped for long-term healthcare planning.
PeaceHealth announced in January 2026 it planned to list the property for sale.
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