Construction Started at Former Sacred Heart Site

Developer The Mark Eugene has begun work on a housing project for University of Oregon students.

Updated on Sept. 20, 2026 in Construction

A construction excavator sits on a cleared gravel lot in Eugene with evergreen trees in the distance. — Construction crews have broken ground at the former Sacred Heart Medical Center site in Eugene to begin a new 2,000-bed University of Oregon student housing complex. AI Illustration. Upload story photo >

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Developer The Mark Eugene broke ground on a new student housing facility at the former Sacred Heart Medical Center site in Eugene. The project is expected to provide housing for more than 2,000 students near the University of Oregon.

Why it matters

The development transforms a vacant site that previously served the community as a hospital into a high-density residence for the student population. This redevelopment addresses the ongoing demand for student housing in close proximity to the university.

The new facility aims to accommodate more than 2,000 students, a significant increase over the 117 medical beds previously housed at the site. The developer also donated to Food for Lane County to address student food insecurity.

The players

The Mark Eugene

This is a student housing developer responsible for the construction project at the former hospital location.

Food for Lane County

This organization is a local food bank that received a donation from the developer to assist with student food insecurity.

University of Oregon

This is a major public research university located in Eugene where the new student housing is situated.

The details

Construction crews broke ground at the corner of Hilyard and Alder streets to begin the multi-story development. The project replaces the retired Sacred Heart Medical Center facility.

September 16, 2026: The Mark Eugene broke ground at the property.

Market Landscape

This project reflects the broader industry trend of adaptive reuse, where developers convert aging or vacant medical infrastructure into dense residential housing. The initiative positions the firm to capture significant market share by addressing the persistent student housing shortage.

Residents in the area can anticipate increased construction activity near the Hilyard and Alder street intersection. The development aims to alleviate local rental pressures by adding a substantial number of dedicated student beds.

The takeaway

The transformation of the former Sacred Heart site highlights the shift toward repurposed urban land in college towns. Students and local residents should prepare for significant infrastructure changes as construction progresses near the university campus.