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, NJ.
In conjunction with the purchase, Taconic and HEI were successful in assuming a $100-million fixed-rate CMBS mortgage with ample remaining term. 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.
The hotel occupies fee simple real estate with views of the Manhattan skyline. It features a gym and indoor heated pool, a restaurant and lounge and 20,000 sq. ft. of meeting space. The hotel is centrally positioned among 28 million sq. ft. of office space within a one-mile radius and is located near the Statue of Liberty, Ellis Island, One World Trade and the 9/11 Memorial.
“We are pleased to further our partnership with HEI and begin an exciting relationship with Hyatt,“ said Andrew Lam, a director in Taconic Capital Advisors’ Commercial Real Estate Group. “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. The highly accretive assumable financing allowed us to continue our thesis for well-located urban, upscale hotels in an otherwise prohibitive financing environment.”
Clark Hanrattie, partner, HEI, added, “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. 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.”