Hudson funds loan for Philly developers.

Manhattan-based Hudson Realty Capital LLC (HRC), a real estate opportunity fund manager with more than $700 million of assets under management, has funded a $22.45 million first mortgage bridge loan secured by a 2.11-acre parcel of land located in downtown Philadelphia.

The short-term loan was used to retire existing debt, fund pre-development costs and purchase the interest of an existing equity partner.

The property, which covers an entire block, is located at the intersection of Vine and 16TH Streets in Philadelphia's Center City district, near historic City Hall. The Sponsor's ultimate business plan is to construct a 43-story, mixed-use structure consisting of one million square feet of retail, hospitality, residential and parking facilities in two phases. Phase I will consist of one tower and a retail/parking structure. In Phase II of the project, a second tower will be constructed on top of the retail/parking structure. Construction is planned to commence in 2007.

The retail component will feature 126,700 of rentable square feet, which will be leased to national retailers. The upscale hotel will include 250 guest rooms.

Spencer Garfield, managing director for HRC, noted: "This project promises to be a major development for Center City, and we are very excited to be involved. This is the second transaction that HRC has completed for this sponsor, the first being a mezzanine investment on a large retail development that was repaid in accordance with the initial business plan. The subject loan was closed very quickly, and HRC was able to overcome many complexities so as to accommodate the sponsor. This speaks to both HRC's flexibility as well as its commitment to partners and clients."