TIAA-CREF Asset Management manages a wide range of assets spanning a variety of portfolios. Learn more about how we implement our innovative investment strategies through these short case studies from around the globe.
With John Cerra, Managing Director, Global Public Markets
Beginning in late 2008, and especially 2009, TIAA began to invest in a number of large ticket, high visibility hospital construction projects, including the largest Federal Housing Administration loan ever (Capital Health, Hopewell, NJ) and two significant NY projects, Albany Medical Center and two Kaleida projects. While the depth of the market has varied over this time, TIAA-CREF has been a credible, steady and deep pocketed partner during this period.
The Ginnie Mae Program is a backstop for hospitals that may not have access to the capital markets. TIAA-CREF has invested close to $4 billion dollars in multi-family, nursing homes, assisted living complexes, and now hospitals through the Ginnie Mae Project Loan Program.
A key aspect to TIAA-CREF’s involvement in Ginnie Mae Hospital Project Loan Program is the fact that it was a by-product of the financial crisis of 2008-2009. Previously, the loans were generally sold into the municipal bond markets, where the loan would be underwritten by a large number of investors taking small pieces of the deal. The municipal bond market “locked up” in the fall of 2008, and throughout 2009; it was quite fitful and erratic. TIAA-CREF was able to finance loans or commit to loans in 2008 and 2009 when a lot of other institutions weren’t able to do it. This was because of TIAA-CREF’s capital strength and commitment to looking for long-dated, long-term investments for our customers.
One example is the construction of a new building that was a joint venture partnership between Kaleida and SUNY Buffalo’s Medical School. TIAA-CREF financed the entire loan, single-handedly as a raw Ginny Mae loan and not as a bond transaction. TIAA-CREF took this innovative approach to financing the transaction because the financing term – 25 years – fits our investment approach, coupled with the fact that it saved money along the way for the hospital corporation.
Kaleida was a natural partner for TIAA-CREF because of their long-term excellent track record, and they are very well respected in the area to the point where SUNY Buffalo entered this joint venture with them. TIAA-CREF viewed this as a sign of confidence that Kaleida was one of the premier hospital corps in the area.
By making investments in projects like the Buffalo Medical Center, TIAA-CREF is helping put money back into the communities that we serve.
Past performance is not indicative of future results. The material is for informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate.
Certain products and services may not be available to all entities or persons.
The project loan discussed concerns a loan issued by Ginnie Mae which was purchased by TIAA.
TIAA-CREF products may be subject to market and other risk factors. See the applicable product literature, or visit www.tiaa-cref.org for details.
© 2012 and prior years, Teachers Insurance and Annuity Association - College Retirement Equities Fund, New York, NY 10017
Past performance is not indicative of future results. The information on this website should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate. Certain products and services may not be available to all entities or persons.
TIAA-CREF Asset Management provides investment advice and portfolio management services for the TIAA-CREF group of companies through our investment advisers including Teachers Advisors, Inc., a registered investment adviser and wholly-owned indirect subsidiary of Teachers Insurance and Annuity Association (TIAA). TIAA® personnel in its investment management area provide investment advice and portfolio management services through the following entities: Teachers Advisors, Inc., TIAA-CREF Investment Management, LLC, and Teachers Insurance and Annuity Association® (TIAA®). TIAA, TIAA-CREF, Teachers Insurance and Annuity Association, and TIAA-CREF Asset Management are registered trademarks of Teachers Insurance and Annuity Association.