Pru Brokers Record $765M FHA Loan Funded by TIAA-CREF for New NJ Hospital
(NEWARK, NJ) -- Prudential Mortgage Capital Co. is calling it the largest construction loan in the history of the Federal Housing Administration -- $756 million for an under-construction, two-building, 237-bed hospital in Hopewell, NJ.Real Estate Channel
reported the planned 968,760-square-foot project March 31. Skanska USA of Parsippany, NJ is building the hospital on a 165-acre site owned by Merrill Lynch.
TIAA-CREF of New York City is funding the job. Capital Health System Inc. of Trenton, NJ, owns the hospital.
"Funding this loan is a win-win for all involved," says John Cerra, fixed-income portfolio manager at TIAA-CREF. "The high-quality, low-risk securities which we will purchase to fund this mortgage to Capital Health match our long-term investment needs as a retirement system."
Prudential's FHA-lending business, Prudential Huntoon Paige, arranged the loan through the FHA's Section 242 Hospital Mortgage Insurance program.
"We are proud of our participation in this historic loan which highlights the strength and depth of our agency platform," said David Durning, senior managing director, Prudential Mortgage Capital.
"With the addition of this loan, we anticipate reaching more than $1 billion of FHA originations in 2009, further demonstrating the confidence we have in our FHA program."
The loan will also help fund a $45 million expansion of Capital Health's hospital in Trenton.
"By working with our partners at the Federal Housing Administration and the Government National Mortgage Association, we were able to leverage our strength and expertise to identify the financing solution for Capital Health," says Marie Head, managing director, Prudential Huntoon Paige.
"We are delighted to have been part of this very important transaction, which will provide the residents in the greater Mercer County region with vital medical services and create jobs for the community."
Al Maghazehe, CEO and President of Capital Health, notes: ,"With the financing now in hand, we are confident that we'll deliver to this region in 2011, the finest healthcare facilities and most advanced medical care available.
"We are extremely proud that Capital Health met the high standards of the FHA, Prudential and TIAA-CREF and that they decided to support these projects that will bring state of the art healthcare to this part of the state."
Ranked the second highest multifamily and healthcare originator by the FHA and the third largest national Ginnie Mae Issuer, Prudential Huntoon Paige arranged more than $306 million in multifamily and healthcare loans in 2008.
In addition, the company maintains a loan servicing portfolio of more than $5 billion, including $2.7 billion in hospital loans.
"Ginnie Mae is proud to participate in this important community-building construction project," says Joseph J. Murin, president of Ginnie Mae.
"The U.S. government is working hard to help rebuild our struggling housing market, and since thriving homeownership depends on thriving communities, we are happy to provide a government-guaranteed security to ensure this project is a success."
Prudential Mortgage Capital Co. is a national full-service, commercial and multifamily mortgage finance business with $61 billion in assets under management and administration as of Dec. 31, 2008.
With 130 years of experience in the real estate finance industry, Prudential Mortgage Capital originates loans for Fannie Mae DUS™, FHA and Freddie Mac Targeted Affordable programs; Prudential's general account; and other institutional investors.