Case Study

University of Colorado Hospital

Deal Summary

In 2002, the University of Colorado decided to close its 42-year old legacy hospital and relocate their operations to a modern medical campus. The new campus would house a new hospital and various other buildings that would support the hospital’s operations, including the 10-story Leprino Office Building and adjacent parking garage.

The hospital owners announced a bidding competition for the Leprino campus in hopes of finding a creative solution that would limit their borrowing costs. The complicated ownership structure of the Leprino Office Building created numerous problems for the owners and needed to find a solution that limited their financial exposure.

Several groups vying for the business did not develop the answer that the Zenith Capital team conceived. Zenith won the business by devising a creative solution to create a non-profit entity that would own the building, thus allowing it to project to get financed with tax-exempt bonds.

Zenith’s team ultimately financed the project with $105 million in tax-exempt bonds, saving the hospital more than $30 million in interest payments.

Information

Location
Aurora, Colorado

Completed
2005

Category
Non-Profit | Medical Facility

Size
$105,000,000

Financing Type
Tax Exempt Bonds

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