JLL Capital Markets has arranged $103.5 million in tax-exempt bond financing for the redevelopment of the 295-room Hyatt Regency Ontario in California.
An affiliate of Rancho Cucamonga, Calif.-based National CORE acquired the hotel through a bankruptcy auction in August 2024 and later secured a franchise agreement with Hyatt. The 233,000-square-foot property will undergo a renovation that reduces the room count from 309 to 295 through the addition of larger suites on upper floors.
The financing package includes $77.1 million in tax-exempt hotel revenue bonds and $26.5 million in tax-exempt C-PACE bonds. JLL arranged the financing on behalf of borrower National CORE, with J.P. Morgan serving as bond underwriter and GreenRock as C-PACE administrator.
According to JLL, the financing represents approximately 80 percent of the project’s total cost and carries a 35-year fixed interest rate structure with a five-year interest-only period followed by 30 years of amortization.
“This transaction reflects the confidence investors have in both the strength of the project and the experienced team behind it,” Robert Diaz, EVP of National CORE and project lead for the redevelopment, said in a statement.
The JLL Capital Markets team representing the borrower included Marc Schillinger, Keaton Yellin, Ace Sudah and Cameron Sepahi.
“National CORE’s A-plus credit rating, continued track record of improving the community through development and dedication to transform this asset were key factors in getting this transaction closed together,” said Schillinger.
Planned upgrades include a redesigned lobby, renovated guestrooms and corridors, expanded food-and-beverage offerings, upgraded fitness facilities, a redesigned outdoor pool area and infrastructure improvements. Meeting space will total 16,469 sq.-feet across two floors. Gensler designed the redevelopment, while National CORE is serving as general contractor.
The hotel is located less than one mile from Ontario International Airport and Toyota Arena on the border of Ontario and Rancho Cucamonga in California’s Inland Empire region.