PeaceHealth Sacred Heart Medical Center at University District hospital is officially on the market, with its 12.53-acre property listed for sale on March 10 — further dimming many residents’ hopes of a hospital returning to Eugene in the near future.
The site, vacant since fall 2023, is being advertised by Chicago-based real estate firm Jones Lang LaSalle as a “scalable” property, with zoning laws allowing for “flexible” redevelopment.
According to JLL listing documents, the main hospital building at 1255 Hilyard St. is set for potential demolition, clearing nearly 1.2 million square feet for development, including multiple surrounding PeaceHealth buildings.
The listed property also includes office space on both sides of East 13th Avenue, which houses the Graduate Teaching Fellows Federation office and several restaurants, including Ume Grill and Tasty Thai.
Additionally, the site remains home to active medical offices — including lab work and imaging services — as well as a Eugene Police Department location.
Located less than a block from both UO and Bushnell University, JLL says the property offers a prime location for redevelopment.
The lot is currently zoned under a mix of Eugene’s C-2 (Community Commercial) and C-3 (Major Commercial) building codes, allowing for large-scale projects, including housing, retail and more.
JLL is accepting bids for the entire lot or portions of the land on behalf of PeaceHealth. Per the listing, a successful bidder would “combine compelling economics with creative development schemes.”
“PeaceHealth understands the importance and potential of this piece of property in the core of Eugene, and we are excited to see what the future holds for its development,” Dr. Jim McGovern, Chief Hospital Executive for PeaceHealth Oregon, wrote in a press release.
PeaceHealth has notified both UO and Bushnell of the sale. Current medical and business services will not be affected during the bidding process.
In an email statement, UO spokesperson Angela Seydel wrote in part, “ We value our long partnership with PeaceHealth. We were aware that the property was going on the market and have no plans to purchase it.”
According to Seydel the university is already in the process of relocating their affected buildings.
JLL did not comment on the listing, when contacted by The Daily Emerald. Bushnell University could not be reached for comment by the time of this publishing.
