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Bridgeport Hospital is teaming with TIAA-CREF, a leading financial services organization, which is financing the construction. TIAA-CREF will supply $113 million in total long-term financing for the project, which will be completed in March 2016.
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.”
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.
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. 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.
“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 of TIAA-CREF, and president of TIAA-CREF Asset Management.
“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,” Leary said. “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.”
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). The hospital admits more than 18,000 patients and receives more than 240,000 outpatient visits annually.
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