Newark, N.J.- Prudential Mortgage Capital Company has arranged a $756 million construction loan for a new hospital in Hopewell Township, N.J., the largest in Federal Housing Administration history. Prudential’s (NYSE: PRU) FHA-lending business Prudential Huntoon Paige, arranged the loan through the FHA’s Section 242 Hospital Mortgage Insurance program.

"We are proud of our participation in this historic loan which highlights the strength and depth of our agency platform," said David Durning, senior managing director, Prudential Mortgage Capital. "With the addition of this loan, we anticipate reaching more than $1 billion of FHA originations in 2009, further demonstrating the confidence we have in our FHA program."

The hospital, located in the Trenton N.J. area, is currently under construction by Capital Health System, Inc. TIAA-CREF provided the funding for the loan. The loan will also help fund a $45 million expansion of Capital Health’s hospital in Trenton.

"By working with our partners at the Federal Housing Administration and the Government National Mortgage Association, we were able to leverage our strength and expertise to identify the financing solution for Capital Health," said Marie Head, managing director, Prudential Huntoon Paige. "We are delighted to have been part of this very important transaction, which will provide the residents in the greater Mercer County region with vital medical services and create jobs for the community."

Al Maghazehe, CEO & President of Capital Health said, "With the financing now in hand, we are confident that we’ll deliver to this region in 2011, the finest healthcare facilities and most advanced medical care available. We are extremely proud that Capital Health met the high standards of the FHA, Prudential and TIAA-CREF and that they decided to support these projects that will bring state of the art healthcare to this part of the state."

Ranked the second highest multifamily and healthcare originator by the FHA and the third largest national Ginnie Mae Issuer, Prudential Huntoon Paige arranged more than $306 million in multifamily and healthcare loans in 2008. In addition, the company maintains a loan servicing portfolio of more than $5 billion, including $2.7 billion in hospital loans.

"Ginnie Mae is proud to participate in this important community-building construction project," said Joseph J. Murin, president of Ginnie Mae. "The U.S. government is working hard to help rebuild our struggling housing market, and since thriving homeownership depends on thriving communities, we are happy to provide a government-guaranteed security to ensure this project is a success."

"Funding this loan is a win-win for all involved," commented John Cerra, fixed-income portfolio manager at TIAA-CREF. “The high-quality, low-risk securities which we will purchase to fund this mortgage to Capital Health match our long-term investment needs as a retirement system."*

Prudential Mortgage Capital Company is a national full-service, commercial and multifamily mortgage finance business with $61 billion in assets under management and administration as of December 31, 2008. With 130 years of experience in the real estate finance industry, Prudential Mortgage Capital originates loans for Fannie Mae DUS™, FHA and Freddie Mac Targeted Affordable programs; Prudential’s general account; and other institutional investors. The company offers fixed- and floating-rate loans; mezzanine, structured and bridge financing; forward commitments; affordable housing and healthcare finance. For more information, visit www.prumortgagecapital.com.

Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $558 billion of assets under management as of December 31, 2008, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, Prudential is focused on helping approximately 50 million individual and institutional customers grow and protect their wealth. The company’s well-known Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. Prudential's businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. For more information, please visit http://www.news.prudential.com/.

*Securities products from TIAA-CREF are distributed through TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA. All TIAA-CREF investment vehicles are subject to market and other risk factors, which could result in loss of principal. C44503

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