Procida Funding’s 100 Mile Fund, in conjunction with the Philadelphia Redevelopment Authority, the City of Philadelphia and the Philadelphia Industrial Corporation, announced $44 million financing to Eric Blumenfeld Realty Management for the rehabilitation of the historic Divine Lorraine Hotel.
The Divine Lorraine dates from the late 19th century and for decades was considered one of the top Philadelphia hotels.
It was the city’s first racially-integrated hotel under Father Divine, but has since sat dormant and fallen into disrepair.
EBRM will renovate the 9-story property into a boutique residential community comprised of 109-rental units to sit above 20,000 s/f of restaurant and retail space .
Divine Lorraine Hotel rendering
“This is probably the biggest day in my entire career; it is certainly the proudest,” said Eric Blumenfeld. “Two years from now, you will not be able to recognize this corridor; it’s about to really come to life.ˮ
Domus Construction has been engaged as the general contractor and construction will begin almost immediately with initial occupancy slated for the fall of next year, according to Robert Malgolis, partner and project manager for Domus.
Cole Schotz represented Procida Funding and the 100 Mile Fund in the closing of its $34.75 million construction loan to EB Realty Management Corp.
Thehotel’s revitalization involved coordinating with an array of state and city governmental agencies and programs, including the Philadelphia Redevelopment Authority which provided a $2,500,000 loan and $1,000,000 grant, the Pennsylvania Redevelopment Assistance Capital Program which provided a $3,500,000 RACP grant, the Philadelphia Industrial Development Corp. which provided a bridge loan for the state grant, and the parks department which is anticipated to provide $8,000,000 in historic tax credits financing.
“This was one of the most complicated closings I’ve encountered, with dozens of lawyers and professionals, all whom were coordinated for closing. Three months ago Procida held a building tour and luncheon for all of the stakeholders. Standing on the roof, Billy Procida lead the introductions and talked strategy, humanizing the event like the old days. Procida is a special client, and I enjoy working with him,” saidCole Schotz partner in charge Leo Leyva.
