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TIAA-CREF and Bridgeport Hospital Partner To Build New Outpatient Cancer Center
$113 Million in Total Long-Term Financing for Outpatient Cancer Treatment Facility Improves Health Care Services and Supports Local Economy
New York, NY and Bridgeport, CT, September 19, 2014 — TIAA-CREF, a leading financial services organization, today announced that it is financing the construction of Bridgeport Hospital's comprehensive outpatient medical office building and cancer center at the hospital's 5520 Park Avenue campus site in Trumbull, Connecticut.
The addition of the new outpatient cancer center will allow patients to receive world-class treatment while staying close to home. The facility will offer radiation, oncology, chemotherapy and other medical services through Bridgeport Hospital and Smilow Cancer Hospital at Yale-New Haven.
"Long-term financing allows us to maximize our financial resources to benefit patients and their families," said Norman Roth, executive vice president and chief operating officer at Bridgeport Hospital and senior vice president of Yale New Haven Health System. "We look forward to providing our patients the best care possible in a modern and pleasant setting that is close to home, with the knowledge and familiarity of their existing doctors."
TIAA-CREF's investment in the project consists of construction and permanent financing for the new medical office building and an adjacent parking garage, as well as land acquisition costs. The financing commitment is structured as a credit tenant loan (CTL). A credit tenant loan is a method of financing real estate in which the property owner borrows money to finance the construction and ongoing ownership of the building and uses a percentage of future rent to repay the loan. Nationwide, TIAA-CREF's CTL program has financed construction of over 24 community-based health care centers since 2008, totaling approximately $1 billion of investments in local communities.
"Leveraging our real estate investment expertise and capital to help Bridgeport Hospital expand treatment options for patients is the type of mutually beneficial partnership that allows us to support our clients' lifelong financial well-being while strengthening the local communities where they live and work," said Robert Leary, executive vice president, TIAA-CREF, and president, TIAA-CREF Asset Management.
In Connecticut, TIAA-CREF has provided credit tenant financing to six organizations totaling $515.3 million, including a $203 million commitment to the construction of an outpatient care facility at the University of Connecticut Health Center's Farmington, CT campus, announced last year.
"As an institution with decades of experience in strategic lending, we can provide our clients with a stable source of long-term financing to construct these important community-based facilities," continued Leary. "The Bridgeport Hospital loan reflects TIAA-CREF's commitment to deploy its investment capital in a way that improves health care services in Connecticut and supports the local economy."
TIAA-CREF manages over $11 billion in assets for more than 74,000 Connecticut residents, including more than $1.3 billion in retirement assets for state employees and professionals at nearly 400 private educational, health care or not-for-profit institutions, as well as more than $2.1 billion for more than 124,000 CHET College Savings Plan account holders. TIAA-CREF also has approximately $7.6 billion in real estate and other investments in the state. Construction on the parking garage began in November 2013. Construction of the medical office building will start in September 2014 and is slated for completion in March 2016.
About Bridgeport Hospital
Part of Yale New Haven Health System, Bridgeport Hospital is a 383-bed acute care hospital (plus 42 beds licensed to Yale-New Haven Children's Hospital) serving parts of Fairfield and New Haven counties. The hospital admits more than 18,000 patients and receives more than 240,000 outpatient visits annually.
TIAA-CREF (www.tiaa.org) is a national financial services organization with $613 billion in total assets under management (as of 6.30.14) and is the leading provider of retirement services in the academic, research, medical and cultural fields.