PHILADELPHIA—An array of public and private partners,
including Billy Procida’s 100 Mile Fund, says it has finalized about $44
million in financing for the transformation of the city’s historic Divine
Lorraine Hotel into a mixed use multi-family and commercial building.
Washington Square Realty Capital arranged for $34.75
million in construction financing, provided by Procida Advisors and its 100
Mile Fund. The Philadelphia Redevelopment Authority, the City of Philadelphia
and the Philadelphia Industrial Corporation are also contributing to the
project, spearheaded by Eric Blumenfeld Realty Management.
“The collaboration that existed between borrower, lender,
City, State and third party professionals for the better part of two years was
remarkable and speaks volumes about how important this project is to Eric
Blumenfeld, the City of Philadelphia and the Commonwealth” says Chris Datz,
principal with Washington Square Realty Capital, who worked on the deal. “It’s
not every day that a real estate financing assignment makes you proud to be a
Philadelphian, this is one of those times, I am so happy for Eric and his team
that they finally can make this vision a reality.”
Kyle Funsch and John Mullane, principals at Procida
Funding, tell GlobeSt.com exclusively that Procida took the strategy of having
“the mindset of a developer” in its financing of the project. The firm has
extensive experience financing redevelopment of distressed properties,
including several in Philadelphia.
They’re preparing for the grand opening later this year
of the Mural Arts Lofts, a Blumenfeld project Procida also financed near the
Divine Lorraine. As previously reported by GlobeSt.com, the project converted a
former school building into upscale loft apartments.
“He is a visionary, and his vision to restore the North
Broad Street corridor is spectacular,” Mullane says of Blumenfeld. “I think
that we can help him execute on the project and bring his dream to fruition.”
“We’re here for capital and discipline,” says Funsch. “We
believe in Philadelphia. Everyone wants to see the Divine Lorraine succeed.”
The project will include affordable housing accessible to
Temple University students and young professionals, Mullane says.
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.
"The exterior of the historic Divine Lorraine Hotel
will be restored to its original grandeur with the interior being renovated
into 109 unique and elegant residences with close to 20,000 square feet of
restaurant and retail space designed to honor its great history,” says Larry
Steinberg of CBRE/FAMECO.
Source: GlobeStreet
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