Search
 

FHA Secures $756M Construction Loan

TRENTON-The deal to insure a mortgage for Capital Health's new hospital marks the largest single transaction in FHA history.

By Alyson Grala | Updated on April 08, 2009

TRENTON-In the largest single transaction of its 75-year history, the Federal Housing Administration has finalized a deal to insure a $756 million mortgage for Capital Health of Trenton. The loan is made possible through the FHA’s Section 242 Hospital Mortgage Insurance Program, which provides HUD-insured mortgages made by private lending institutions to finance construction or renovation of acute care hospitals.

The loan will ultimately allow Capital Health to construct a new two-building, 968,760-square-foot hospital in Hopewell Twp., which will replace the existing 112-year-old Mercer Medical Center on Bellevue Ave. In addition, Capital Health’s Fuld Hospital in Trenton will create two new medical-surgical units and provide space to accommodate services transferred from Mercer.

By insuring the mortgage loan, FHA enabled Capital Health to obtain a lower cost financing, saving the hospital approximately $538 million in interest expense over the 25-year life of the loan.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.