A $100 million Commercial Mortgage-Backed Securities (CMBS) loan, secured by a 351-room Hyatt Regency hotel directly on the waterfront in Jersey City, N.J., has been transferred to special servicing. This occurred due to an imminent maturity default, according to a report from Morningstar Credit Analytics. The loan is expected to default because the sponsor team stated it would be unable to repay it before its October 2026 maturity date.
The $100 million loan in question is part of the CGCMT 2016-P5, CGCMT 2016-P6, and CMBX.10 conduit deals. In December 2022, Taconic Capital Advisors and HEI Hotels & Resorts acquired the Hyatt Regency from Veris Residential and Hyatt Hotels for $117 million.
Since the original issuance of the three CMBS loans in 2016, the Hyatt Regency only achieved net cash flow equivalent to the originally assumed values in one year – 2016. The hotel even recorded negative cash flow in 2024, and its net operating income in 2025 was 68 percent below expectations. Morningstar Credit anticipates either a loan extension or a forbearance as a resolution strategy.
Opened in 2002, the Hyatt Regency is located at 2 Exchange Place in Downtown Jersey City, on a pier directly on the Hudson River Waterfront Walkway. It offers over 20,000 square feet of event space, as well as a fitness centre, a self-parking garage, and an on-site restaurant. The hotel is only a five-minute walk from the New Jersey PATH train, which provides connections to Manhattan. A statement from Taconic Capital Advisors could not be obtained.
