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5/18/26
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National CORE has obtained $103.5 mil in tax-exempt bond financing for the repositioning of the 295-key Hyatt Regency hotel in Ontario. The financing structure combines $77.1 mil in tax exempt hotel revenue bonds and $26.5 mil in tax exempt C-PACE bonds.
J.P. Morgan is the bond underwriter for the transaction, with GreenRock as the C-PACE administrator. The deal represents approximately 80% of total project cost with a 35-year fixed interest rate and includes a five-year interest-only period followed by a 30-year amortization schedule.
An affiliate of National CORE acquired the asset through a bankruptcy auction in August 2024 and secured a franchise agreement with Hyatt. The 233k sf hotel sits on 8.69 acres with 335 surface parking spaces.
The redevelopment, designed by Gensler, will reduce the key count from 309 to 295 rooms through the creation of larger suites on the upper floors. The renovation includes a lobby redesign, food and beverage additions including a three-meal restaurant, lobby bar, grab-and-go market, poolside food truck and Regency Club Lounge. The property will feature 16.5k sf of meeting facilities across two floors, renovated guestrooms and corridors, upgraded fitness center, redesigned outdoor pool area and infrastructure improvements.
National CORE is serving as general contractor for the project. Beyond restoring a distressed hospitality asset, the redevelopment is expected to create local jobs, support nearby demand drivers and bring a higher-quality hotel product to a rapidly growing Ontario/Rancho Cucamonga corridor.
The Hyatt Regency Ontario is located at 700 North Haven Ave, on the border between Ontario and Rancho Cucamonga in Southern California's Inland Empire. The property is less than one mile from Ontario International Airport, which served more than 7 million passengers in 2024, and the 11,000-seat Toyota Arena.
The hotel is within 10 minutes of more than $10 bil in planned developments, including the Brightline West high-speed rail terminal connecting Rancho Cucamonga to Las Vegas, opening in fall 2028, and the $200 mil Toyota Arena District mixed-use expansion, scheduled for winter 2027. Additional projects include the Ontario International Airport expansion, Ontario Convention Center capacity doubling and the Ontario Sports Empire Complex, a 200-acre facility expected to attract 1.2 million visitors annually upon its October 2026 opening.
Investor demand for the offering exceeded $1 bil, representing approximately 10 times the amount of bonds ultimately issued and reflecting strong market confidence in the project, sponsorship and long-term vision for the property.
The JLL Capital Markets team representing the borrower included Senior Managing Director Marc Schillinger, Keaton Yellin, Ace Sudah and Cameron Sepahi.
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