Mercy Hospital

As Northern Light Mercy Hospital gears up to expand its Fore River campus and consolidate its operations there, the Portland hospital announced Thursday that it has sold its State Street building to private housing developers.

The hospital eventually plans to move out of the building at 144 State St., but it will lease the space until the expected completion of the Fore River campus expansion in 2022.

The hospital plans to break ground on the $83.3 million expansion this spring after it was approved this week by the Portland planning board, according to the Portland Press Herald.

As part of the expansion, the hospital will construct a nearly 193,000-square-foot hospital as well as a medical office building and an ambulatory surgery center, according to the Press Herald.

Mercy Hospital sold the State Street property to a pair of local development firms, NewHeight Group and Redfern Properties, and plans to spend the proceeds on the Fore River campus expansion, according to spokesman Ed Gilman.

The hospital also said it will pay for the project with the proceeds from a $20 million fundraising campaign and some additional cash, equity and financing, according to the Press Herald. The State Street building is on the National Register of Historic Places.