Taconic Capital Advisors and HEI Hotels & Resorts have jointly acquired the Hyatt Regency Jersey City (N.J.) from affiliates of Hyatt Hotels Corp. and Veris Residential. The property is a full-service, 351-key hotel adjacent to the Exchange Place neighborhood, situated on a pier extending over the Hudson River.
In conjunction with the purchase, Taconic and HEI assumed a $100 million fixed-rate commercial mortgage-backed securities mortgage with a remaining term they described as "ample." The hotel was completed in 2002 and undergone more than $15 million in subsequent upgrades since 2010. Major enhancements to the guestrooms, food-and-beverage outlets and event spaces are expected to commence under the new ownership.
“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 in a statement. “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 occupies fee-simple real estate with views of the Manhattan skyline. The property has a gym and an indoor heated pool, a restaurant and lounge and 20,000 square feet of meeting space. The hotel is centrally positioned among 28 million square feet of office space within a 1-mile radius and is located near the Statue of Liberty, Ellis Island, One World Trade Center and the 9/11 Memorial.
The joint acquisition follows Taconic and HEI’s March 2022 purchase of the Westchester Marriott in Tarrytown, N.Y., a 15-acre property that has 444 guestrooms and 21 event rooms for a total of 26,700 square feet of conference and meeting space.