Monday, April 13, 2009

Prudential Mortgage Capital Arranges $756M FHA Loan for Trenton, NJ Area Hospital

(Rendering of new Capital Health System hospital in Hopewell, NJ, above)

Construction Loan Called Largest in FHA History

NEWARK, NJ.--(BUSINESS WIRE)--Prudential Mortgage Capital Company has 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 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 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.

“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, (top left photo) 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, (middle right photo) 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.”

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,” said Joseph J. Murin, (top right photo) 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.”

“Funding this loan is a win-win for all involved,” commented 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.”*
Contact:
Prudential Financial, Inc., Lisa Iurato, 973-802-5345. lisa.iurato@prudential.com

No comments:

Post a Comment