CMBS Loan Backed by Hyatt Regency in Jersey City Sent to Special Servicing

A $100 million commercial mortgage-backed securities (CMBS) loan secured by a 351-key waterfront Hyatt Regency hotel in Jersey City, N.J., has been sent to special servicing due to an imminent maturity default, according to an alert from Morningstar Credit Analytics.

The $100 million loan — which makes up portions of the CGCMT 2016-P5, CGCMT 2016-P6, and CMBX.10 conduit deals —  is expected to default after the sponsorship team stated it would be unable to pay off the loan ahead of its October 2026 maturity. 

Taconic Capital Advisors and HEI Hotels & Resorts purchased the Hyatt Regency from Veris Residential and Hyatt Hotels in December 2022 for $117 million. 

Since the 2016 origination of the three CMBS loans, the Hyatt Regency has had only one year — 2016 — when its net cash flow met the levels underwritten on the debt. In fact, the hotel reported negative cash flow in 2024, and its net income came out to 68 percent less than its underwritten expectations in 2025. 

Morningstar Credit noted that it expects “a loan extension or forbearance as a resolution strategy.”

Located at 2 Exchange Place in Downtown Jersey City, the Hyatt Regency sits on a pier directly on the Hudson River Waterfront Walkway. It features more than 20,000 square feet of event space as well as a fitness center, self-parking garage and an on-site restaurant. The hotel is a five-minute walk from a New Jersey PATH train with access into Manhattan. 

The Hyatt Regency opened in 2002. 

Taconic Capital Advisors did not respond to requests for comment. 

Brian Pascus can be reached at bpascus@commercialobserver.com.