Kim Anthony • July 10, 2026

National CORE Closes $103M Financing for Hyatt

National CORE, one of the nation’s largest nonprofit developers and property managers of affordable housing, has closed approximately $103 million in bond financing to support the transformation of the Ontario Airport Hotel & Conference Center into Hyatt Regency Ontario, an upper-upscale, full-service hospitality destination near Ontario International Airport.


The successful consummation of the bond offerings paves the way to a rapid renovation project that will reimagine the hotel, redefine hospitality in the Inland Empire and drive economic growth in neighboring communities.


“This project represents the rebirth of an iconic property that has long stood at the gateway to our community,” said Jeff Burum, chairman of the board of directors for National CORE. “This is an investment in Ontario and in economic growth that elevates the region for residents, businesses, travelers and the organizations serving this community.”


The project brings together the experienced team of Hyatt as franchisor, Manhattan Hospitality Advisors as hotel operator, M. Arthur Gensler Jr. & Associates, Inc. as architect and National CORE as owner and developer.


“Hyatt Regency Ontario near a major airport will bring a unique value proposition centered on connectivity, convenience, and elevated full-service hospitality. The brand is designed to serve as a dynamic hub for business and leisure travelers by offering expansive meeting and event space, premium food and beverage experiences, flexible gathering areas, and seamless access for travelers in transit,” said Patrick Schumm, senior vice president of franchise operations and owner relations, Hyatt. “Beyond stays, Hyatt Regency hotels are built to attract conferences, corporate meetings, and regional events that generate sustained economic activity and community engagement. We are excited by National CORE’s vision and the opportunity to create a destination that delivers long-term value for travelers, local businesses, and the broader community.”


The bond offerings also mark a major investment in the region and reflect confidence in the project team, the long-term vision for the property and National CORE’s financial strength.


Investor demand for the offering was strong and well in excess of the par amount offered allowing JP Morgan, who served as the sole underwriter, to reduce interest rates to a blended rate for the entire financing (CPACE + Revenue Bonds) of slightly more than 6%.


Robert Diaz, Executive Vice President and project lead with National CORE, noted that “Investors responded to the strength of National CORE’s balance sheet, our longstanding presence in the Inland Empire and our ability to execute complex development projects. This financing structure allowed us to align long-term community investment with a transformational hospitality project that will benefit the region for decades.”


“The highly innovative financing structure we were able to arrange for National CORE was the result of strong collaboration between a team dedicated to making a success out of this effort and was driven by strong partnership from Jones Lang LaSalle (JLL), GreenRock Capital, FrostBrownTodd Gibbons, Chapman and Cutler, Orrick and JP Morgan,” said Fred Schuster of FGS Realty Advisors.


“The complexity of structuring the first hospitality tax-exempt bond financing for JLL required creativity and a dedicated team of the best professionals in the business. National CORE’s A-plus credit rating, continued track record of improving the community through development, and National CORE’s vision and dedication to transform this asset were key factors in getting this transaction closed together,” said Marc Schillinger of JLL Capital Markets.


The financing package included approximately $27.3 million in Property Assessed Clean Energy (PACE) bonds supporting eligible energy-efficiency improvements and approximately $74.5 million in hotel revenue bonds supporting renovation, construction and project-related costs.


“It is great to work with the team at National CORE, which is a leader in building cost-contained, high-performance developments that minimize impact on natural resources and aligns perfectly with the purposes of PACE financing,” said Joe Euphrat, Co-Founder & Managing Principal of GreenRock.


National CORE views the hotel investment as part of a broader long-term strategy to diversify revenue sources and strengthen organizational stability to further fuel its efforts in furtherance of its mission of providing affordable housing and resident services.


National CORE also views the investment as part of a broader workforce development strategy through its “CORE Academy,” including future hospitality career pathways and training opportunities connected to the hotel industry.

“Our mission has always been about investing in communities in ways that create lasting impact,” Burum added. “This project reflects that same philosophy. We are building something that serves the region today while creating opportunities for the future.”

Illustration: National CORE, Inc.

By Kim Anthony • September 25, 2026
Beginning January 1, 2027, California sales and use tax will generally apply to prewritten software delivered electronically or accessed remotely, including many Software-as-a-Service subscriptions. CALIFORNIA — If your business sells software, provides access to an online platform or pays for software subscriptions, a tax change belongs on your 2027 planning list. Under Senate Bill 122 , signed into law June 29, 2026, California is expanding the sales and use tax definition of tangible personal property to include certain digital products and associated copyright or patent interests. That means retail sales of covered products in California—and covered products purchased from a retailer for storage, use or other consumption in California—may be taxable beginning January 1, 2027 . The change generally affects sellers of prewritten software, SaaS providers, businesses that license or provide remote access to prewritten software, and the customers who buy those products. What counts as a digital product? For this law, a digital product is prewritten computer software delivered on physical storage media, transferred electronically or accessed remotely. Prewritten software is software held for general or repeated sale or lease. It can qualify even if it was originally developed for a particular customer or for a company’s own use. A combination of two or more prewritten programs can also qualify. What is outside this definition? The law does not classify every digital purchase as a taxable digital product. The following are excluded from its digital product definition: Digital assets, such as cryptocurrency Digital audio works, such as music, spoken recordings and ringtones Digital audiovisual works, such as movies and videos with sound Digital books, or eBooks Digital infrastructure, such as cloud platforms customers use to create, deploy or run their own software applications Digital video game products Digital visual works, such as computer-generated artwork The law also provides exemptions for custom computer software , digital products representing a service other than SaaS, digital products transferred with reproduction and distribution rights, and digital products purchased solely for use outside California. Businesses should review the details of a transaction before treating it as excluded or exempt. A $5 million rule for certain large purchases In some transactions, responsibility for paying the tax can shift from the retailer to the purchaser. The rule concerns a retailer’s aggregate gross receipts from digital products sold to the same purchaser that are transferred electronically or accessed remotely. For 2027 , the threshold is more than $5 million in that calendar year . Beginning January 1, 2028 , the test looks at whether those receipts exceeded $5 million in the current or preceding calendar year. When the rule applies, the purchaser may need a Use Tax Direct Payment Permit and may have to report and pay the tax directly to the California Department of Tax and Fee Administration (CDTFA). Location matters for local taxes For digital products transferred electronically or accessed remotely, the place of sale for local and district tax reporting is generally the customer’s address. The place of use is where the person accessing the product is located. That distinction matters when a company’s billing address and its software users are in different places. CDTFA explains the rules in its Tax Guide for Retailers and Purchasers of Digital Products . What sellers need to do California digital product sellers that are not already registered with CDTFA may need to obtain a seller’s permit , file sales and use tax returns, and report and pay tax on taxable retail sales. Out-of-state sellers that are engaged in business in California under Revenue and Taxation Code section 6203 may need a Certificate of Registration—Use Tax . They would collect and report use tax on covered sales to California consumers and pay it to CDTFA. Registration is available through CDTFA Online Services . The UBJ takeaway: Software sellers can use the months before January 2027 to review their products, customer locations, invoicing and registration needs. Buyers can review their software agreements and ask vendors how the new tax will appear on invoices. For the definitions, exemptions and reporting rules, start with CDTFA’s digital products tax guide
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