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.
Founded in 1824, the Medical University of South Carolina (MUSC) continues the tradition of excellence in education, research and patient care. MUSC educates and trains more than 3,000 students and nearly 800 residents in six colleges and has more than 17,000 employees. As the state’s only integrated academic health sciences center and largest non-federal employer in Charleston, the university and its affiliates have collective annual budgets in excess of $3.2 billion, with an annual economic impact of nearly $4 billion and annual research funding in excess of $284 million.
As the clinical health system of the Medical University of South Carolina, MUSC Health is dedicated to delivering the highest quality patient care available, while training generations of competent, compassionate health care providers to serve the people of South Carolina and beyond. Comprising some 1,600 beds, more than 100 outreach sites, the MUSC College of Medicine, the physicians’ practice plan, and nearly 275 telehealth locations, MUSC Health owns and operates eight hospitals situated in Charleston, Chester, Florence, Lancaster and Marion counties. In 2019, for the fifth consecutive year, U.S. News & World Report named MUSC Health the No. 1 hospital in South Carolina.