From its perch on the corner of Broad Street and Fairmount Avenue in North Philly, the ten-story
Divine Lorraine -- currently crumbling, nearly in ruins -- has been watching over Philadelphia for 120 years.
Recently, the latest chapter in the life of this gorgeous relic was made public: A New Jersey-based real estate mogul with an impressive record of rescuing stalled development projects has agreed to lend just over $31 million to the building's current owner, Eric Blumenfeld, who purchased the building in late 2012 but underestimated renovation costs. So, after sitting empty for the past 15 years, a bit of optimism is in the air.
"It seems my entire career, I came in to finish things other people couldn't get done," says
Billy Procida, the lender who's now working with Blumenfeld on the building's renovation. The Lorraine may become a high-end apartment building, Procida says, or perhaps a hotel.
Either option will include 21,000 square feet of commercial space -- likely a mix of restaurants, lounges and retail, according to Procida, who feels that a highly visible boutique hotel could turn the neighborhood's fortunes around almost immediately. "I've just got to see if we can find an operator who can move fast enough," he adds.
Procida and Blumenfeld are also exploring a 50-50 option for the building -- turning half of it into apartments and the other half into a hotel. But when it comes to the Lorraine's crucial status in North Philly, Procida has few doubts.
"If this building was finished, that neighborhood would be on fire right now," he says. "The one thing holding that neighborhood back is that building. It's that simple."
Writer: Dan Eldridge
Source: Billy Procida, Procida Funding & Advisors