PeaceHealth ready to place South Campus properties in Bellingham on the market
Health care company PeaceHealth, which owns St. Joseph Medical Center in Bellingham and numerous clinics in Whatcom County, will be listing its South Campus property for sale, according to an announcement Tuesday at the company’s website and a statement sent to The Herald.
PeaceHealth said it intends to sell its entire South Campus site, which is the location of the former St. Luke’s Hospital near the intersection of Lakeway Drive, Holly and Ellis streets.
Few details were provided, including an asking price and a listing of the exact properties for sale. Many of PeaceHealth’s holdings in the area are listed with addresses in the 800 block of East Chestnut Street, according to the Whatcom County Assessor’s Office website.
“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 well-being, support growth and innovation and reflect the spirit of this area,” the statement said.
Currently, the Chestnut Street complex houses PeaceHealth’s Home Health services, according to its website.
PeaceHealth said it will be working with the global real estate firm of Jones Lang LaSalle to develop plans for the site.
“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,” the statement reads.
Additional guidance was being sought from the city of Bellingham and local housing nonprofit groups, according to the statement.
The red brick St. Luke’s Hospital was built in 1895. St. Luke’s first opened in 1892 in the unused Grand Central Hotel at Holly and Forest streets, according to previous reporting by The Herald reporting. St. Joseph bought St. Luke’s in 1989, making it part of the PeaceHealth network.
PeaceHealth’s current South Campus includes “several acres across three parcels, including the former St. Luke’s Hospital building, an apartment complex and a professional office building,” the statement said.
Ownership for several of the parcels remains with the Sisters of St. Joseph of Peace, according to the Assessor’s Office website.
“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,” PeaceHealth’s statement said.
This story was originally published January 27, 2026 at 3:03 PM.
