Prudential Mortgage Capital Company recently announced that it had arranged a $756 million construction loan for a new hospital in Hopewell Township, N.J., the largest in Federal Housing Administration history. Prudential’s (NYSE: PRU) FHA-lending business arranged the loan through the FHA’s Section 242 Hospital Mortgage Insurance program. The hospital, located in the Trenton N.J. area, is currently under construction by Capital Health System, Inc. TIAA-CREF provided the funding for the loan. The loan will also help fund a $45 million expansion of Capital Health’s hospital in Trenton.
“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.”
“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,” said 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 & President of Capital Health said, “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.”
“Ginnie Mae is proud to participate in this important community-building construction project,” said 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.”