PROVIDENCE – Providence Place is going up for sale.
A court-appointed lawyer running the mall said Thursday that he has received approval to hire a real estate broker to put the property up for sale by September.
Mark Russo said in a statement that the court has approved the lawyer’s recommendation to hire Chicago-based Jones Lang LaSalle Inc. He said the company is now “conducting due diligence” and putting together materials to have the mall ready to be marketed for a sale by mid-September.
“JLL will lead a robust marketing effort to identify the highest and best offer for the property,” Russo said in an emailed statement. “ Ultimately, any sale would be subject to court approval. Our role is to run a transparent, court-supervised process and then make a recommendation. The court will hold a public hearing before making any final decisions about a buyer or sale."
Superior Court Judge Brian P. Stern appointed Russo and John Dorsey as permanent receivers of the financially struggling retail outlet in November 2024. Dorsey had to withdraw from the case when he was named a U.S. bankruptcy judge, a role he will start in September.
The mall went into receivership last year after the former owner, Brookfield Properties and subsidiary GGP-Providence Place LLC, defaulted on more than $250 million in loans.
Stern granted a petition for receivership – a 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 and Brookfield Properties.
Since taking over the operations at the mall, the receivers have hired Centennial Real Estate Management LLC to manage Providence Place under a one-year agreement.
Last month, Stern ruled that U.S. Bank, acting as trustee for investors in a commercial mortgage loan, can "credit bid" to buy the mall, meaning it can use the unpaid loan amount to try to buy the property without using cash. Such a move would allow the lender to protect its investment against a low sale price to another buyer, a scenario in which it might not get back what it is owed.
