Developer Finds Unique Financing Solution for Wyoming Hospital
April 20, 2017
Project: Aspen Mountain Medical Center
Location: Rock Springs, WY
4 operating rooms
2 procedure rooms
Land Purchased May 2014
Site Work Commenced September 2014
Substantial Completion and Full Occupancy April 2016
Local physicians in Southwest Wyoming recognized a need for better access to healthcare; they had seen a growing trend among their patients of needing to travel long distances for surgical and specialty care... A new hospital would provide more direct access to multiple specialties and services so area residents would have no need to travel. Also, a new efficient facility would provide higher quality healthcare at a lower cost.
Astoria was selected as the Developer of Record for the project and along with physician partners, formed a special purpose entity to acquire the land, develop and own the building. The building was leased to Aspen Mountain Medical Center, the sole tenant of the proposed building.
Due to the project’s location in a relatively small city, normal sources of conventional financing were restricted and would have required multiple lenders. Fortunately, Astoria researched available funding for rural projects and found Rock Springs met the population criteria for participation in the USDA Rural Projects program, which provided funds at a competitive interest rate and guarantees from the USDA to a Federal Insured Financial Institution.
The Rural Projects program required due diligence above and beyond conventional lending, including items such as archeological studies, so land choice became a critical development factor.
Astoria’s challenge was to facilitate the additional due diligence requirements but maintain the expected timeline for bringing the hospital online.
In response to this challenge, Astoria coordinated the team to provide and tracked all progress, including special inspections and reports back to the primary lender and USDA, which were required on a monthly basis. The support and cooperation of the Wyoming Regional USDA office was a critical factor in the success of the project.
Additionally, Astoria coordinated with the owners’ clinical and operations team throughout the project to ensure the final product met their needs.
Aspen Mountain Real Estate and Aspen Mountain Medical Center typify Astoria’s commitment to the transformation of healthcare by creating new patient-centered facilities that provide high-quality healthcare at a lower cost.