Kindred Hospital building up for auction in Sycamore

SYCAMORE – Kindred Hospital, which is expected to close by spring 2025, will be auctioned off in an effort to redevelopment the property, according to a social media announcement from the city of Sycamore.

The Louisville, Kentucky-based operator of Kindred Hospital, 223 Edward St., in Sycamore confirmed to Shaw Local News Network in October that they intend to close the longterm acute care facility by no later than April 30. The closure also is pending state approval, hospital officials said.

The city of Sycamore’s Facebook page announced Nov. 26 plans for a forthcoming auction.

“This property offers immense potential for redevelopment – though, keep in mind: rezoning will likely be required for residential and nonresidential uses,” according to the city’s announcement.

The city was notified of the decision by Kindred Hospitals, which is part of Scion Health, to close Kindred Hospital on Oct. 15, according to city documents.

Officials at the time cited dwindling patient numbers as a reason for the impending closure.

The 64-bed hospital had fewer than 20 beds filled when the City was notified in October. The hospital also saw a 25% decline patients between 2018 and 2023, according to a letter officials sent to the city of Sycamore.

Patients are expected to be transferred to a different longterm acute care facility or discharged by the time Kindred closes.

The hospital operator is expected to consolidate its facilities into two within the greater Chicago area.

Sycamore city leaders, calling it “an incredible opportunity,” said they have a plan for the aging building in the meantime: auction it off to an interested developer. The hospital building is 67,585 square feet on a nearly 3-acre lot, according to the city.

“With a rich history and unmatched location, this property is ideal for developers, investors, or anyone with a vision to transform,” according to the city’s announcement. “Don’t miss your chance to acquire a piece of the past and create something extraordinary!”

Sycamore city officials also included details on the building’s property taxes, which came in at $119,059 in 2024, according to the announcement.

The auction, which will include the hospital building, two ancillary buildings and a parking lot, is expected to begin in early 2025. The property is mostly zoned for schools, public parks, institutional and public uses, but also includes a section that is zoned for residential use, according to a document by Jones Land LaSalle Americas commercial real estate firm.

The property includes 101 parking spaces.

The initial building was erected in 1949, and added to in 1980 and 1993, according to the firm’s executive summary. The hospital can accommodate 36 rooms and 69 beds, according to the commercial real estate firm.