FHA Backs Mortgage Insurance for Shawn Jenkins Children's Hospital, Pearl Tourville Women's Pavilion Loan


Contact: Heather Woolwine

Sept 19, 2016

CHARLESTON, SC – The U.S. Department of Housing and Urban Development (HUD) Office of Hospital Facilities, which administers the Federal Housing Administration’s (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. FHA Section 242 of the National Housing Act provides mortgage insurance on loans for acute care hospital facilities ranging from large teaching institutions to small rural critical access hospitals.

The FHA Firm Commitment to Insure was issued to Armadale Capital as the FHA mortgage lender. 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.

The MUHA loan will be funded by GNMA mortgage-backed securities with an expected closing in October, 2016.

Following the mortgage loan closing, loan proceeds will be used to fund construction of the $385 million MUSC Shawn Jenkins Children's Hospital and Pearl Tourville Women's Pavilion.  Construction is scheduled to commence in October 2016 with projected completion of the project in 2019.

“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 Patrick J. 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.”

The MUSC Shawn Jenkins Children’s Hospital & Pearl Tourville Women’s Pavilion will replace the 29-year-old MUSC Children’s Hospital currently located on Ashley Avenue, providing much needed space for the thousands of patients and families served by MUSC 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.

For more information about the MUSC Shawn Jenkins Children’s Hospital & Pearl Tourville Women’s Pavilion, please visit ImagineMusckids website.
About MUSC Health

MUSC Health is the clinical enterprise of the Medical University of South Carolina (MUSC) comprised of a 700-bed Medical Center, the MUSC College of Medicine and the physician’s practice plan.  It serves patients across South Carolina and beyond through four hospital facilities in Charleston and more than 100 outreach sites.  Among these are the Hollings Cancer Center, a National Cancer Institute-designated center and the only one of its kind in South Carolina, and a nationally recognized Children’s Hospital.  The Medical University was founded in 1824 and has become a premiere academic health sciences center at the forefront of the latest advances in medicine, with world-class practitioners and scientists providing groundbreaking research and technology that is often the first of its kind in the world.

About MUSC

Founded in 1824 in Charleston, MUSC is the state's only comprehensive academic health system, with a unique mission to preserve and optimize human life in South Carolina through education, research and patient care. Each year, MUSC educates more than 3,200 students in six colleges – Dental Medicine, Graduate Studies, Health Professions, Medicine, Nursing, and Pharmacy – and trains more than 900 residents and fellows in its health system. MUSC brought in more than $300 million in research funds in fiscal year 2023, leading the state overall in research funding. MUSC also leads the state in federal and National Institutes of Health funding. Learn more about our academic programs.

As the health care system of the Medical University of South Carolina, MUSC Health is dedicated to delivering the highest-quality and safest patient care while educating and training generations of outstanding health care providers and leaders to serve the people of South Carolina and beyond. Patient care is provided at 16 hospitals (includes owned or governing interest), with approximately 2,700 beds and four additional hospital locations in development, more than 350 telehealth sites and nearly 750 care locations situated in all regions of South Carolina. In 2023, for the ninth consecutive year, U.S. News & World Report named MUSC Health University Medical Center in Charleston the Number 1 hospital in South Carolina. Learn more about our patient services.

MUSC has a total enterprise annual operating budget of $5.9 billion. The nearly 26,000 MUSC family members include world-class faculty, physicians, specialty providers, scientists, students, affiliates and care team members who deliver groundbreaking education, research, and patient care.