South Campus Purchase Agreement

Western Washington University and PeaceHealth Reach Agreement on Former St. Luke's Property, Advancing Future Health Education and Community Care

Bellingham, Wash., Oct. 16, 2026 - Western Washington University (Western) and PeaceHealth have reached a purchase-and-sale agreement for the south campus property, former St. Luke's Hospital. The agreement reflects a shared commitment to advancing health education, supporting student well-being and planning for future regional healthcare needs.

The Foundation for WWU & Alumni, the nonprofit that supports the university, has approved a $12.5 million grant from their unrestricted funds for the university to purchase this property.

Situated at a prominent gateway to downtown Bellingham, the south campus property has the potential to be a cornerstone of downtown. Both organizations are committed to reimagining the site as a welcoming, accessible space that serves students, neighbors and the broader community.

The purchase and sale agreement includes all three parcels that together make up the south campus site:

• Parcel A: St. Joseph South Campus Hospital Facility (809 E. Chestnut St.), the former St. Luke's Hospital building, and adjoining parking lot.
• Parcel B: Chestnut Professional Building (800 E. Chestnut St.)
• Parcel C: 705 E. Maple St. Apartment Complex, an eight-unit residential building that is externally managed. Western will initiate the planning process for the site, now that the purchase and sale agreement has been signed.

In partnership with Peace Health and other health care providers in the region, the University envisions the new site to serve as an anchor to health sciences education, research, outreach, and training, including consolidating and expanding existing programs to serve high-demand health professions and graduate-clinic education. Western also envisions the opportunity to develop an integrated community clinical hub that increases access to physical and behavioral healthcare for both students and the broader community.

"This agreement represents an exciting opportunity to reimagine a site in ways that directly benefit our students and the broader community," said Sabah Randhawa, President of Western Washington University. "We are committed to thoughtfully planning a space that enhances and expands health education, research and training to support growing, critical needs in the health professions and increases integrated physical and behavioral health services for our students and the community. Our partnership with PeaceHealth reflects a shared vision for a healthier future for our region."

The Foundation is proud to partner with the university on this transformational opportunity to expand the footprint of WWU with programming that will enhance educational and healthcare opportunities for the Bellingham community.

"The Foundation is honored to provide this philanthropic investment," said Kim Hill, CEO of The Foundation for WWU & Alumni. "Now more than ever, higher education needs support from all stakeholders, and this is one of the many ways the Foundation and our donors are choosing to invest in the quality of education that WWU provides, further elevating the university's leadership in serving the region, fostering innovation, and creating lasting opportunities for generations of students, faculty, and community members."

As part of the agreement, PeaceHealth will receive approximately 2.5 acres of Western's Lincoln Street Park and Ride site. The total park-and-ride site is approximately 8 acres in size, with ample space remaining for established parking needs when combined with the newly acquired large lot across from the St. Luke's site.

PeaceHealth intends to preserve the newly acquired Lincoln Creek parcel as undeveloped land to support long-term healthcare planning and ensure flexibility in meeting the evolving needs of the community.

"This agreement allows us to mindfully plan for the future of healthcare in Whatcom County," said Charles Prosper, Chief Executive, PeaceHealth Northwest Region. "By securing land for future development, we are ensuring that we can continue to meet the growing and changing needs of our community while supporting Western's important work in education and student health. It's a meaningful investment in the health and well-being of our region for years to come."

Both organizations will continue to engage stakeholders as planning progresses.

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Tags

• Whatcom County Impact