Developer Eric Blumenfeld has closed on a $35 million construction loan to restore the decaying Divine Lorraine Hotel on North Broad Street into an apartment building with ground-floor dining.

Englewood Cliffs, N.J.-based Procida Funding & Advisors is providing the private financing for the project north of City Hall, according to a statement from Washington Square Realty Capital, which helped arrange the loan.

The developer is also seeking public funds for the project, including a $3.5 million state grant and $3.5 million in historic preservation tax credits, said Christopher Cordaro, vice president of Blumenfeld's EB Realty Management Corp. Crews are preparing to begin construction at the site, he said.

215-854-2615 @jacobadelman