LOUISVILLE, Ky. (WDRB) -- KentuckyOne Health plans to sell its downtown office complex on S. 4
Street and move more than 500 employees to other locations.

The building at 535 and 539 S. Fourth Street is on the east side of the block between Chestnut and Guthrie streets.

It has about 130,000 square feet and is assessed at $6.9 million for tax purposes. The 535 S. Fourth Street portion is four stories, and 539 S. Fourth Street is three stories, according to PVA records.

The decision to put the building on the market comes as the Central Business District is still working through a glut of empty office space.

Just up the street, Meidinger Tower has 140,000 square feet – about 10 floors – available for lease, according to a commercial real estate listing.

KentuckyOne's decision to sell the property was “part of our ongoing efforts to strengthen our finances and operational efficiencies,”

About 560 employees in information technology, finance and administrative departments “will be moved to buildings on our downtown medical campus or other facilities appropriate for their needs, allowing for greater connection to the organization in more recently renovated facilities,” KentuckyOne said. “We also expect annual cost savings through the sale of the building.”

Part of Colorado hospital giant Catholic Health Initiatives, KentuckyOne Health has been working for more than a year to improve its bottom line, including about 700 job reductions in early 2014.

A statewide health system with about $2 billion in annual revenue, KentuckyOne Health also operates University Hospital in Louisville through a partnership with the University of Louisville.

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