Wisevoter
Peoria

OSF HealthCare Purchased Peoria MidTown Plaza

The health system acquired the property to expand its medical services, requiring current retail tenants to relocate.

Updated on Oct. 3, 2026 in Openings & Closings

Isometric editorial illustration of a commercial plaza building undergoing structural renovation with exposed internal frames.
OSF HealthCare has acquired the MidTown Plaza in Peoria, a strategic move intended to convert the retail site into a new ambulatory medical care facility. AI Illustration. Upload story photo >

Live Poll

Should medical institutions prioritize their expansion over the retention of local small businesses?

OSF HealthCare has officially purchased MidTown Plaza in Peoria to facilitate an expansion of medical and ambulatory care services at the site. The acquisition requires current retail tenants to vacate their spaces.

Why it matters

The transition of this retail space into a medical hub reflects a broader regional strategy to consolidate healthcare delivery closer to the local community. OSF HealthCare intends to integrate new ambulatory care facilities where commercial businesses previously operated.

The Joseph Companies listed the 1800 Knoxville Ave. plaza for $1.69 million in October 2025. The site was originally developed in 2002 using $5.5 million in city bonds.

The players

OSF HealthCare

This integrated healthcare system operates numerous facilities throughout the region and is the current owner of MidTown Plaza.

The Joseph Companies

This organization served as the previous owner and seller of the MidTown Plaza property.

The Baby Shoppe

A local retailer that has operated at the MidTown Plaza location for 10 years and is now planning a move to Sheridan Plaza.

She-Pop Gourmet Popcorn

A retail business currently operating in the plaza that is seeking a new facility due to the medical expansion.

The details

OSF HealthCare is currently working through lease options with established businesses, including The Baby Shoppe and She-Pop Gourmet Popcorn. While some tenants hold leases extending into 2028, property contracts often contain 90-day vacancy clauses that allow the new owner to reclaim the space for redevelopment.

Timeline

  1. MidTown Plaza opened in 2002.

  2. Cub Foods closed in 2009.

  3. OSF HealthCare opened a Center for Health in the plaza in 2020.

  4. The property was listed for sale in October 2025.

  5. She-Pop Gourmet Popcorn has a lease expiring in June 2028.

Market Landscape

This acquisition follows the documented national trend of health systems repurposing aging retail plazas into centralized medical hubs. The move mirrors industry efforts to consolidate healthcare services in high-traffic, previously commercial real estate corridors.

Shoppers who frequent the 1800 Knoxville Ave. location will see local retail staples relocate, including The Baby Shoppe moving to Sheridan Plaza. Residents should expect construction activity as the site transitions from commercial use to a clinical environment.

The takeaway

The transformation of retail plazas into medical facilities illustrates how infrastructure needs evolve as health networks grow. Tenants in similar commercial developments should review their lease vacancy clauses to understand their rights in the event of property ownership changes.

Further reading

Find more local business updates in the Peoria Openings & Closings section.

Live Poll

Should medical institutions prioritize their expansion over the retention of local small businesses?