TIAA-CREF announced Monday that it committed to the "long-term financing" investment to help pay for the health center's planned "300,000-square-foot outpatient care building and parking garage" on the Farmington campus, according to a press release from TIAA-CREF. The outpatient care building is the only part of the project so far being funded by private financing.
“This public-private partnership between the UConn Health Center and TIAA-CREF is a win-win for Connecticut,” Gov. Dannel P. Malloy said in a statement. “A state-of-the-art outpatient care facility will allow the health center to better recruit top talent and address the medical needs of the community. This type of investment creates jobs and demonstrates the success of the Bioscience Connecticut initiative.”
The state is providing some funding for the health center for the renovations as part of Bioscience Connecticut. Malloy penned the initiative, approved by the General Assembly in 2011, to create construction jobs that also contribute to growing the bioscience industry in Connecticut and pave the path for long-term bioscience jobs.
TIAA-CREF is a "financial services organization with $523 billion in assets under management," the release stated.
The outpatient care building will "enhance [UConn Health Center's] medical practices and clinical programs to continue to improve the services available to patients and their families," according to the release. The plan also calls for consolidation of outpatient care into one building as opposed to keeping it in multiple buildings.
“By securing customized, long-term financing for the outpatient care building with TIAA-CREF, we are able to maximize the university’s time, money and personnel resources versus seeking other financing options,” said Jeffrey Geoghegan, controller for UConn Health Center. “We are excited by the significant growth opportunities the new outpatient care building will afford the university.”
The financial package works as a "credit tenant loan," which is a way to finance real estate and construction, the release stated. A portion of income from future tenants' rent payments to use UConn's building will help repay the loan.
“We believe that public-private investments with financially strong, stable institutions like the UConn Health Center are mutually beneficial. They support our clients’ financial well-being and strengthen their local communities through job growth and increased revenues,” said Robert Leary, executive vice president at TIAA-CREF and president of TIAA-CREF asset management. “With this investment, we are truly advancing the long-term interests of our clients and the state of Connecticut while fulfilling our own mission to support the financial strength of nonprofit institutions and employees.”