Affiliates of Hyatt Hotels Corp. and Veris Residential Inc. traded the Hyatt Regency Jersey City to Taconic Capital Advisors L.P. and HEI Hotels & Resorts, according to a public announcement last week.
The property is a full-service, 351-key hotel located adjacent to Exchange Place, situated on a pier extending over the Hudson River in Jersey City.
Taconic and HEI were successful in assuming a $100 million fixed-rate CMBS mortgage with ample remaining term, in conjunction with the purchase. The hotel was completed in 2002 and more than $15 million in subsequent upgrades have been performed since 2010. Major enhancements to the guestrooms, food and beverage outlets and event spaces are expected to commence under the new ownership.
Hyatt Regency Jersey City offers views of the Manhattan skyline and features a state-of-the-art gym and indoor heated pool, a restaurant and lounge and 20,000 square feet of meeting space.
“We are pleased to further our partnership with HEI and begin an exciting relationship with Hyatt. Hyatt Regency Jersey City was a compelling opportunity to acquire a world-class hotel with a strong segmentation mix and a diverse set of revenue contributors,“ Andrew Lam, a director in Taconic Capital Advisors’ Commercial Real Estate Group, said. “The highly accretive assumable financing allowed us to continue our thesis for well-located urban, upscale hotels in an otherwise prohibitive financing environment.”
“Hyatt Regency Jersey City is a wonderful property with a rich legacy that has greatly benefited from Jersey City’s rapidly expanding corporate base as well as the revitalization of Hudson Yards and Lower Manhattan,” Clark Hanrattie, partner at HEI, stated. “We are proud to team with Taconic on this important transaction and we are looking forward to making the hotel the very best it can be.”