QuickTake:

A PeaceHealth spokesperson said the demolition won’t begin “in earnest” for a couple of months at the site, where a developer plans to build housing. 

Asbestos removal work is underway at the site of the former PeaceHealth Sacred Heart Medical Center, University District in Eugene.

Construction equipment was at the site and operating this week. PeaceHealth relocated the hospital to Springfield and put its property up for sale in multiple parcels. 

Jim Murez, a spokesperson for PeaceHealth, said in an email plans are still being finalized and that “demolition isn’t scheduled to begin in earnest for a couple months.” 

“Right now, asbestos remediation continues, including on the north skybridge, which is the reason for the signs on Hilyard,” Murez said in an email Thursday, March 19.

City records show permit applications were filed last year for interior demolition work, demolition of the entire building and tree removal.

Landmark Properties, a Georgia-based developer involved in the demolition work, intends to construct housing on part of the former hospital property. The company had a site consultation with city officials in July 2025, a typical first step for developers weighing whether a project is feasible.

In a statement, a spokesperson for Landmark Properties said: “The proposed project expects to deliver over the course of two phases. Phase one will include 272 units while phase two will include 325 units. Demolition work has commenced on site and is expected to be fully complete later this year.”

Since PeaceHealth put the property up for sale in March 2025, different organizations have expressed interest in different parts of the real estate, which totals 1.2 million square feet on 12.53 acres. Murez didn’t return phone calls seeking more information about the status of that work.

In August, Bushnell University announced plans to purchase two buildings at the site to expand its health profession programs.

Ben Botkin covers politics and policy in Lane County. He has worked as a journalist since 2003, most recently at the Oregon Capital Chronicle, where he covered justice, health and human services and documented regional efforts to fentanyl addiction. Botkin has worked in statehouses in Idaho, Nevada, Oklahoma and, of course, Oregon. When he's not working, you'll find him road tripping across the West, hiking or surfing along the Oregon Coast.