PeaceHealth lists property at former Eugene hospital for sale
Eugene area health care situation the topic of conversation at forum
The Churchill Area Neighbors hosted a health care forum at the Willamette Christian Center. Here is what they discussed.
- PeaceHealth has listed the University District hospital location in Eugene for sale.
- The hospital closed in December of 2023 and the property is being brokered by Jones Lang LaSalle
PeaceHealth announced Monday that it is selling its University District hospital property in Eugene.
The PeaceHealth Sacred Heart Medical Center at University District closed in December 2023.
Combined with an exodus of doctors from Oregon Medical Group after it was purchased by Optum in 2020, the state of healthcare in Lane County has been a concern to residents. The changes left much of Eugene without primary care providers and meant the nearest hospital was the Sacred Heart Medical Center at RiverBend in Springfield. Lane County residents and Eugeneans have gathered at two healthcare forums, one in the fall of 2024 and another more recently this spring, to hear from professionals about the state of local healthcare and how folks can obtain navigational resources.
The property is listed for sale and will be brokered by global commercial real estate firm Jones Lang LaSalle. According to Lane County real estate property data, the PeaceHealth University District location at 1200 Hilyard St. had a Real Market Value of $43,203,791 assessed in 2024. The Real Market Value of a property is the amount in cash that a buyer could reasonably pay to a seller in an informed, arms-length transaction. The value of the land in 2024 was assessed at $8,531,576, and the improvements, or the buildings, were valued at $34,672,215.
Assets on the property include two buildings. One is medical offices standing six stories tall and the other is a street-facing retail strip and parking garage standing four stories tall, all built in 1989. The medical office building is 20,195 sq. ft., while the retail space is 4,488 sq. ft. and the parking garage is 54,335 sq. ft. The property occupies 2.77 acres of land.
Dr. Jim McGovern, the chief hospital executive for PeaceHealth Oregon, acknowledged the value of the PeaceHealth Sacred Heart Medical Center at the University District as a community asset in a press release.
“PeaceHealth understands the importance and potential of this piece of property in the core of Eugene,” McGovern said. “We are excited to see what the future holds for its development.”
Jones Lang LaSalle already has a presence in Eugene, with recent work including having arranged financing in May of 2024 for K14 Campus Flats, a student housing apartment complex at 1414 Kincaid St. by the University of Oregon.
Later this week, PeaceHealth plans to break ground for its newest facility, a standalone inpatient rehabilitation hospital near the RiverBend Annex. According to a press release, the facility is expected to nearly double the current unit’s capacity and will be home to the region’s first traumatic brain injury unit.
PeaceHealth also has plans to establish the Timber Springs Behavioral Health Hospital, which intends to triple the current unit’s capacity as well as expand services to both adolescent and elderly patients. The RiverBend emergency department is also set for renovations to help decrease wait times. These new facilities and renovations will add 196 inpatient beds compared to the 117 beds that were licensed at the PeaceHealth University District location.
While the property is now for sale, PeaceHealth plans to retain all of the University District’s current clients, including the Urgent Care at the University District and the inpatient behavioral health unit, both during and following the sale by leasing back its current spaces. For the coming year, clinics and services are expected to remain where they are now, with no near-term disruptions expected for non-medical tenants located at the University District. In the long term, PeaceHealth plans to explore alternate locations for these University District services and non-medical tenants will be connected with future developers.
Neighbors of the property, the University of Oregon and Bushnell University, have been informed of this sale listing by PeaceHealth and will be connected with the broker team as well as future potential buyers.
Hannarose McGuinness is The Register-Guard’s growth and development reporter. You can reach her at [email protected].
link
