Taconic Capital Advisors LP and HEI Hotels & Resorts jointly acquired the Hyatt Regency Jersey City.
The partners announced the purchase of the full-service, 351-key hotel from affiliates of Hyatt Hotels Corp. and Veris Residential Inc. Dec. 1.
Situated on a pier over the Hudson River and adjacent to Exchange Place, the hotel was completed in 2002 and since 2010 has received more than $15 million in upgrades. New ownership said it plans to make major enhancements to guestrooms, food and beverage outlets and event spaces at the property.
“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,“ said Andrew Lam, a director in Taconic Capital Advisors’ Commercial Real Estate Group. “The highly accretive assumable financing allowed us to continue our thesis for well-located urban, upscale hotels in an otherwise prohibitive financing environment.”
The Hyatt Regency Jersey City. – TACONIC CAPITAL ADVISORS
Taconic and HEI also announced they were successful in assuming a $100 million fixed-rate CMBS mortgage with ample remaining term.
“Hyatt Regency Jersey City is a wonderful property with a rich legacy that has greatly benefitted from Jersey City’s rapidly expanding corporate base as well as the revitalization of Hudson Yards and Lower Manhattan,” said HEI Partner Clark Hanrattie in a statement. “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.”
Hyatt Regency Jersey City occupies fee simple real estate, according to the partners. Inside, guest features include a gym and indoor heated pool, a restaurant and lounge, and 20,000 square feet of meeting space. Looking outward, the property offers unobstructed views of the New York City skyline.
The joint venture seller was represented by JLL’s Hotels & Hospitality Group, that firm announced Dec. 13. The team was led by Senior Managing Director Jeff Davis and Executive Vice President Stephany Chen with local market support from Senior Managing Director Jose Cruz.
Near world-renowned tourist attractions such as the Statue of Liberty, the hotel is central to 28 million square feet of office space within a 1-mile radius, according to Taconic and HEI.
In August, Veris Residential reported in its Second Quarter 2022 Results that the property, along with its last suburban office property, were under binding contracts for a cumulative $132.25 million. The move brought it another step closer in its efforts to unload non-strategic assets as it continues to transition to a multifamily focus. As of the third quarter, the company had nearly 7,000 units in its portfolio.
Editor’s note: This story was updated at 12:29 p.m. EDT on Dec. 14, 2022, to include that JLL represented the seller in this transaction.
