JLL Arranges $103.5M Tax-Exempt Bond Financing for Hyatt Regency Ontario Repositioning in Southern California's Inland Empire

JLL Capital Markets has arranged $103.5 million in tax-exempt bond financing for the repositioning of a 295-key Hyatt Regency hotel in Ontario, California, the firm announced May 15, 2026. The financing structure combines $77.1 million in tax-exempt hotel revenue bonds and $26.5 million in tax-exempt C-PACE bonds, representing approximately 80% of total project cost.

Financing Structure

The transaction features a 35-year fixed interest rate with a five-year interest-only period followed by a 30-year amortization schedule. JPMorgan served as bond underwriter, and GreenRock acted as C-PACE administrator. JLL worked on behalf of the borrower, National CORE, to secure the financing.

The deal drew significant investor interest: demand for the offering exceeded $1 billion, representing approximately 10 times the amount of bonds ultimately issued, according to JLL.

"The complexity of structuring a hospitality tax-exempt bond financing required creativity and a dedicated team of the best professionals in the business," said Marc Schillinger, Senior Managing Director at JLL. "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."

Keaton Yellin of JLL added, "This financing reflects what is possible when a strong sponsor, creative capital and disciplined execution come together around a compelling project. We are proud to have helped deliver a financing solution that supports National CORE's vision for transforming this asset."

The JLL Capital Markets team representing the borrower included Senior Managing Director Marc Schillinger, Keaton Yellin, Ace Sudah and Cameron Sepahi.

Acquisition and Repositioning

An affiliate of National CORE acquired the 233,000-square-foot hotel through a bankruptcy auction in August 2024 and subsequently secured a franchise agreement with Hyatt. The property sits on 8.69 acres at 700 North Haven Ave. on the border between Ontario and Rancho Cucamonga, with 335 surface parking spaces.

The redevelopment, designed by Gensler, will reduce the key count from 309 to 295 through the creation of larger suites on the upper floors. Renovation plans include a lobby redesign, food and beverage additions — including a three-meal restaurant, lobby bar, grab-and-go market, poolside food truck and Regency Club Lounge — as well as 16,469 square feet of meeting facilities across two floors, renovated guestrooms and corridors, an upgraded fitness center, a redesigned outdoor pool area and infrastructure improvements. National CORE is serving as general contractor for the project.

"This transaction reflects the confidence investors have in both the strength of the project and the experienced team behind it," said Robert Diaz, Executive Vice President of National CORE and project lead. "We are grateful to JLL, GreenRock Capital, J.P. Morgan and our partners for helping bring this transformative vision to life. The overwhelming response to the offering reinforces the long-term potential of this property and its impact on the Inland Empire."

Fred Schuster of FGS Realty Advisors, who assisted National CORE with the transaction, noted the significance of the financing structure: "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."

Market Context

The Hyatt Regency Ontario is located less than one mile from Ontario International Airport, which served more than 7 million passengers in 2024, and the 11,000-seat Toyota Arena. The property is within 10 minutes of more than $10 billion in planned developments in the Ontario/Rancho Cucamonga corridor.

Those projects include the Brightline West high-speed rail terminal connecting Rancho Cucamonga to Las Vegas, slated to open in fall 2028, and the $200 million Toyota Arena District mixed-use expansion, scheduled for winter 2027. Additional nearby developments include an Ontario International Airport expansion, a doubling of Ontario Convention Center capacity and the Ontario Sports Empire Complex — a 200-acre facility expected to attract 1.2 million visitors annually upon its October 2026 opening.

About the Sponsor: National CORE

National CORE is a vertically integrated nonprofit developer and owner founded in 1992, headquartered in Rancho Cucamonga. The organization holds an A+ S&P credit rating and manages more than $3.0 billion in assets. Its portfolio includes 75-plus properties and more than 16,000 multifamily units. The firm has developed more than 4,900 apartment homes valued at $1.3 billion over the last two decades and currently has $345 million in construction under contract, with an additional $133 million slated to begin by end of 2026.

The redevelopment is expected to create local jobs and bring an upgraded hotel product to the corridor, according to the firm.