Under financial pressure, Bastyr University plans to sell some or all of its 51-acre campus in Kenmore — a move that could bring a new tenant to the site for the first time in decades or open the door for housing development on the expansive property.
The private university, founded in 1978 and known for its naturopathic medicine programs, could move from the property near Saint Edward State Park to another location in the Seattle area after a sale takes place. The exact timeline remains unclear, though the university says educational programs will not be disrupted.
“This is not a decision to close Bastyr University,” the university wrote about the sale this week. “It is a strategic action to reposition the institution for long-term success, continued accreditation, and the ability to invest in innovation and student success.”
Brokers marketing the property didn’t release an asking price for the site, which includes a main campus building and chapel totaling 178,000 square feet in addition to athletic fields, gardens and 132 rooms of student housing. Instead, they are inviting interest and offers.
The property listing promises buyers “multiple options for upside.” A buyer could purchase the entire campus and maintain its use as a school, buy and redevelop the entire property, or buy a portion of the site while the university remains on the rest of the property. About 12 acres of buildable land on the site could allow up to 1,000 apartments, according to the listing.
In the event of a full sale, the university hopes to lease space from the new owner for one to three years to prepare for a move.
A sale could take place this year, Bastyr President Devin Byrd said in an interview Wednesday.
Selling the campus is “a huge moment for us, but it’s also a moment that we are preparing ourselves for,” Byrd said.
Bastyr bought the campus from the Seattle Archdiocese two decades ago with plans for expansion. But today, the university is struggling.
As enrollment falls, costs soar and online programs become more popular, Bastyr is using less than half of the building space at the campus and has shuttered some in-person programs. The primary building on the site, built in the 1950s and previously used as a Catholic seminary, needs costly repairs, according to the university.
“The reality that we have at this current time, which is not unlike other institutions, is that it costs a fair amount to operate our existing campus,” Byrd said.
The site could be attractive for single-family home or apartment developers as King County suburbs continue to boom.
Marketing materials note that renters seek out markets like Kenmore as they are priced out of other parts of the Seattle area, pushing up demand and rental costs in Kenmore. For-sale home prices are high, too. The median single-family home in Kenmore sold for nearly $1.4 million in February, more affordable than some areas of the Eastside but higher than the cost in Seattle, according to the latest available Redfin data.
Bastyr has already begun seeking planning and zoning changes from the city of Kenmore to allow market-rate housing development on the site. Those changes are still under consideration, and any development could face stiff opposition from nearby residents.
King County needs hundreds of thousands of new homes of all types, many of them affordable for people with low incomes, over the next two decades. Those figures include an estimated 3,000 units needed in Kenmore.
Bastyr is also feeling the squeeze from high housing costs and other factors, Byrd said.
Fewer people are expected to pursue higher education in coming years, and housing costs have skyrocketed in many metro areas with universities, including Seattle and San Diego, where Bastyr operates another campus. Online programs allow students to seek degrees without moving to those expensive markets.
Financial challenges have now endangered Bastyr’s status with some of its accrediting agencies. Selling the Kenmore property “is intended to positively impact our accreditation status,” the university wrote.
In the event of a move, a new location could also allow the school to access more modern labs and technology, Byrd said. Still, those updated amenities would be nearby, he said.
“Seattle has been our home for decades and we’re committed to ensuring that we remain in the Seattle area.”
