Closing of $130 Million Deal to Finance Expansion and Renovation of Hospital in Cayey, Puerto Rico

Standing at the left, Michael A. Colón, San Juan Field Office Director joined closing team. At the table from left to right: Lisa Smith, Prudential Huntoon Paige Associates, Ltd.; José E. Soliván, Chief Financial Officer, Mennonite General Hospital, Inc.; Pedro L. Meléndez Rosario, Chief Executive Officer Mennonite General Hospital, Inc.; José A. Veguilla, President of the Board of Directors of Mennonite General Hospital, Inc. and Marta Rosa Mercado-Suro, Chief Operating Officer, Mennonite General Hospital, Inc.

On January 20, 2010, HUD insured a mortgage loan to Mennonite General Hospital to expand and renovate its Cayey campus. The $129,966,100 loan is made possible through FHA's Section 242 Mortgage Insurance Program for Hospitals. The closing was completed at the San Juan Field Office.

The project entails construction of 144,018 square feet of new space, 40,302 square feet of renovated space, and a parking garage. The new space will add 61 beds to the existing 155 beds for a total complement of 216 beds on the campus. The project's additional space will also allow replacement and expansion of the existing emergency department; a designated pediatric emergency area; new and expanded outpatient surgery facilities; expansion of the radiology department; a new birthing center with a Neonatal Intensive Care Unit; renovation of the vacated areas for nursing administration; outpatient cardiology; expansion of the holding and recovery area for surgery; and new space for the addition of five intensive care patient rooms.

HUD estimates this construction project will create 562 full-time jobs and provide an estimated economic stimulus of $208.3 million to the community. Once completed, it is estimated the project will provide an annual economic benefit of approximately $48.2 million and support 507 local jobs.

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Content Archived: January 2, 2014