(PRWEB) September 22, 2016
On September 7, 2016, the U.S. Department of Housing and Urban Development (HUD) Office of Hospital Facilities, which administers the FHA Section 242 Mortgage Insurance Program for hospitals, issued its insurance commitment for a proposed $316 million Section 241/242 FHA-insured mortgage loan for MUSC Medical Center (also known as Medical University Hospital Authority or MUHA), the teaching hospital unit of the Medical University of South Carolina, located in Charleston. The FHA Firm Commitment to Insure was issued to Armadale Capital as FHA mortgage lender. Following the mortgage loan closing, loan proceeds will be used to fund construction of the $385 million MUSC Shawn Jenkins Children's Hospital & Pearl Tourville Women's Pavilion. Site preparation has already begun and construction is scheduled to commence in October, 2016.
FHA Section 242 of the National Housing Act provides mortgage insurance on loans for acute care hospital facilities ranging from large urban teaching institutions to rural critical access hospitals.
“This is a significant step in building our new facility which allows us to continue to provide cutting edge care to the state and nation” said Dr. Patrick Cawley, M.D., MUSC Health CEO and MUSC Vice President of Health Affairs, “Our partnership with HUD is critical to our overall mission and we are grateful for their endorsement and backing of this significant project” added Cawley.
The MUSC Shawn Jenkins Children’s Hospital & Pearl Tourville Women’s Pavilion will replace the 29-year-old MUSC Children’s Hospital, providing much needed space for the thousands of patients and families served by MUHA each year. The new facility will provide more spacious, family-centered amenities and expanded services, including an expanded neonatal intensive care unit, an entire floor dedicated to the care of children with cancer and the most comprehensive pediatric heart center in South Carolina.
Armadale Capital, based in Manhattan, also served as FHA Banker and led MUHA’s $361 million FHA Section 242 refinancing in 2012 and $47 million FHA Section 241 refinancing in 2013, saving MUHA over $70 million in interest costs.
“HUD is always thorough in their application review but once again managed to move their process along quickly” said Stephen Pack, President of Armadale Capital. “As an FHA lender we are fortunate to have responsive hospital clients like MUHA. We are now positioned to take advantage of this favorable interest rate environment”.
The MUHA FHA insured loan will be funded by GNMA mortgage backed securities with an expected closing in October, 2016.