PeaceHealth to list South Campus property for sale

Bellingham, Wash. — PeaceHealth is sharing an important update about the future of its South Campus property, formerly St. Luke’s Hospital —one rooted in our ongoing commitment to caring for the people in our community. As part of our mission‑driven effort to focus resources where they will most benefit our community, PeaceHealth plans to sell the South Campus property and continue investing in the St. Joseph main campus, including major projects such as the new Peter Paulsen Pavilion.

This step reflects our responsibility as thoughtful stewards of resources. By aligning our efforts around a modernized, strengthened main campus, we can ensure PeaceHealth is wellpositioned to meet the growing and evolving needs of our communities for years to come.

To guide this process, PeaceHealth has partnered with Jones Lang LaSalle (JLL), a respected real estate firm and advisory firm, with deep experience in communityfocused development. Together, we will seek potential developers who value the heart of this community—those who bring forward proposals that support local priorities and honor PeaceHealth’s legacy. We believe the South Campus property holds meaningful potential for the future and can serve the region in new and positive ways.

About the South Campus Property

The South Campus spans several acres across three parcels, including the former St. Luke’s Hospital building, an apartment complex and a professional office building. While parts of the property are no longer suitable for use—such as the vacant former hospital structure—the site offers a unique opportunity for thoughtful renewal. Much of the campus today consists of parking areas, providing a blank slate for creative reimagining.

As we look ahead, PeaceHealth recognizes the importance of this property within Bellingham’s landscape. We are optimistic about how it might contribute to community wellbeing, support growth and innovation and reflect the spirit of this area.

Commitment to Community and Partners

Throughout this process, PeaceHealth is committed to open communication and collaboration. We are engaging key partners—including the City of Bellingham and local nonprofit organizations—to ensure they are informed as planning moves forward. Strengthening connections with those who share our dedication to community health is central to this effort.

“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, Northwest.

About PeaceHealth: PeaceHealth, based in Vancouver, Wash., is a not-for-profit Catholic health system offering care to communities in Washington, Oregon and Alaska. PeaceHealth has approximately 16,000 caregivers, a medical group practice with more than 1,100 providers and nine medical centers serving both urban and rural communities throughout the Northwest. In 1890, the Sisters of St. Joseph of Peace founded what has become PeaceHealth. The Sisters shared expertise and transferred wisdom from one medical center to another, always finding the best way to serve the unmet need for healthcare in their communities. Today, PeaceHealth is the legacy of the founding Sisters and continues with a spirit of respect, stewardship, collaboration and social justice in fulfilling its Mission. Visit us online at peacehealth.org.

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