Hotel Shuts Down In North Philly As New Owner Plots Apartment Conversion
An iconic North Philadelphia hotel will be converted back into apartments as a legal dispute between its current and former owners plays out in court.
Units in the Divine Lorraine, a Victorian tower owned by Susquehanna Structured Capital on the corner of Broad Street and Fairmount Avenue, could be available for lease as soon as April. The more than 130-year-old storied building will offer furnished and unfurnished units.
Six businesses on the ground floor, including a coffee shop, a cocktail bar and several restaurants, will remain open as its owner prepares the building for opening and determines where to set rents.
“We’re canvassing the market, going to see what we think is the right pricing for this product,” Susquehanna Managing Director Brian Morris told WHYY. “It differentiates itself from some of the other buildings that are much newer. It’s a beautiful asset, and I think that people like that kind of character.”
The Divine Lorraine has towered over the neighborhood since 1892 when the distinctive double-breasted structure was built as cutting-edge luxury housing on the bustling frontier of the rapidly growing city.
In the decades that followed, the 110-unit tower was converted into a hotel before becoming the headquarters of a religious group. The building was abandoned in the 2000s after North Philly’s fortunes shifted in the late 20th century.
Developer Eric Blumenfeld acquired the Divine Lorraine for roughly $3M in 2012 and spent $44M to convert it into apartments, The Philadelphia Inquirer reported.
But Blumenfeld terminated residents’ leases in 2022 and set about turning the tower into an extended-stay hotel called Mint House. He ran into financial issues, and lender Susquehanna Structured Capital foreclosed on the building in 2023, citing the developer’s $100M of unpaid debt.
Mint House closed at the end of 2024.
The financial dispute between Blumenfeld and Susquehanna escalated into a legal battle. The developer lost the case last year and was ordered to pay a $50M personal judgment earlier this month.
The legal saga is not over, as a settlement conference is scheduled for March 6. But Susquehanna is now firmly in control of the historic building.
“Eric Blumenfeld no longer has any ownership stake in the Divine Lorraine building,” Morris told WHYY.
