Hyatt in SoCal’s Inland Empire Secures $104M to Finance Upgrades

A previously distressed hotel in Southern California’s Inland Empire that was purchased in a bankruptcy auction has secured a nine-figure financing package for a significant renovation.

Nonprofit development firm National Core closed on $103.6 million in tax-exempt bond financing for the Hyatt Regency hotel in Ontario, Calif., JLL announced Friday. 

The financing combines $77.1 million in tax-exempt hotel revenue bonds and $26.5 million in tax-exempt commercial property-assessed clean energy (C-PACE) bonds, with J.P. Morgan as the bond underwriter and GreenRock as the C-PACE administrator. The debt represents approximately 80 percent of the total project cost with a 35-year fixed interest rate, and includes a five-year, interest-only period followed by a 30-year amortization schedule.

“The financing structure for this project represents an innovative approach to capitalizing hospitality assets in today’s market,” Fred Schuster of FGS Realty Advisors, who assisted National CORE with the transaction, said in a statement. “By combining tax-exempt C-PACE with tax-exempt mortgage revenue bonds, the team was able to deliver a compelling financing package that aligns long-term capital with a transformative hospitality investment.”

The 233,000-square-foot hotel sits on nearly 9 acres with 335 surface parking spaces on the border between Ontario and Rancho Cucamonga. The Gensler-designed redevelopment will reduce the room count from 309 to 295 after making the suites larger.

Plans also call for a lobby redesign and food and beverage additions such as a three-meal restaurant, lobby bar, grab-and-go market, poolside food truck and Regency Club Lounge. The property, too, will feature 16,469 square feet of meeting space, an upgraded fitness center, a redesigned outdoor pool area and other infrastructure improvements.

An affiliate of National Core acquired the asset through a bankruptcy auction in August 2024. It’s less than one mile from Ontario International Airport and the 11,000-seat Toyota Arena. It’s also near the Brightline West high-speed rail terminal connecting Rancho Cucamonga to Las Vegas, which is set to open in 2028.

The JLL Capital Markets team representing National Core on the financing included Marc Schillinger, Keaton Yellin, Ace Sudah and Cameron Sepahi.

National Core was founded in 1992 and is based in Rancho Cucamonga. The development firm has $3 billion in assets under management, including more than 75 properties and more than 16,000 multifamily units. It also has $345 million in development under contract and $133 million slated to begin before the end of 2026.

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.