PROVIDENCE – Providence Place has new management just weeks after being placed into receivership.
Centennial Real Estate Management LLC has transitioned into property management responsibilities of the mall, according to W. Mark Russo, one of the West Warwick attorneys handling the receivership proceedings that started when lenders petitioned for a judge to step in because the mall owners have been unable to make payments on a $259 million loan.
Centennial, based in Dallas, manages more than two dozen malls nationwide. It wasn't immediately clear how new management would change the mall's operations, if at all. The company did not respond to a message seeking comment. But Russo had previously said shoppers would not notice any disruptions.
“Providence Place mall remains a valuable asset for both the state of Rhode Island and the city of Providence, and we are excited about opportunities to make meaningful improvements,” Russo said in a statement to Providence Business News.
Russo also appeared to acknowledge that Macy's Inc., one of two anchor stores in the mall, is planning to pull out of Providence Place as part of a larger company restructuring in which about 150 stores would be closed, 50 by the end of the year, and the rest over three years.
"Their decision to reposition nationally was anticipated at the time of our appointment as temporary receivers," Russo said in a statement. "We view this development as an opportunity to work collaboratively with Macy’s to identify and attract a new anchor presence that aligns with Providence Place’s vision as a dynamic and unique retail destination."
"This transition presents a chance to enhance the property’s performance and create an even more engaging experience for visitors," he said.
Russo did not respond to follow-up questions Monday morning.
Media outlets reported last week Macy’s, an anchor store inside the mall, has been listed as available. Details of the listing of the 206,000-square-foot store were unclear.
Russo and John Dorsey were appointed as temporary receivers of the mall on Nov. 1 by Providence Superior Court Judge Brian P. Stern.
The appointment of Russo and Dorsey came after Stern granted a petition receivership – state-level version of bankruptcy – by the U.S. Bank National Association. Court records show that U.S. Bank National Association represents lenders who granted a $305 million loan in 2011 to GGP-Providence Place LLC and mall owner Brookfield Properties.
The lenders, which petitioned for receivership Oct. 29, say Brookfield Properties still owe more than $259 million on the loan. A hearing is scheduled for Dec. 4 to appoint a permanent receiver.
Receivership is not ideal, but it’s not a death sentence for the mall.
The mall’s tenants will continue conducting business as usual. However, media outlets reported last week Macy’s, an anchor store inside the mall, has been put up for sale. Details of the listing of the 206,000-square-foot store were unclear.
Correction: An earlier version of this story gave an inaccurate number of Macy's stores closing over three years.
