Demolition crews are tearing down the old Mount Carmel Nursing Home on South Alameda Street and Everhart Road.
Crews hope to have the entire property torn down by January.
The Ed Rachal Foundation purchased the old nursing home in late April.
They plan to give two acres of the property to the Ronald McDonald House so they can then build a larger facility for families needing a place to stay, while their child is being treated at Driscoll Children's Hospital.
The remaining property will be available for commercial development.