PROVIDENCE – The two attorneys appointed as temporary receivers of Providence Place have been tapped for the permanent role.
Superior Court Judge Brian P. Stern during a hearing on Wednesday appointed John Dorsey and Mark Russo as permanent receivers of the financially struggling retail outlet.
Stern originally named Russo and Dorsey temporary receivers of Providence Place on Nov. 1.
"John and I look forward to continuing the important work that we have started in this capacity and ultimately re-position Providence Place, so it continues as a valuable asset to our capital City and State," Russo said in a statement to Providence Business News.
The attorneys' initial appointment 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 Brookfield Properties.
In May 2021, Brookfield Properties defaulted on its mortgage and the loan was transferred to a special servicer in anticipation of the failure to pay. Special servers take over commercial mortgage-backed securities when borrowers can’t pay and usually work out a loan modification or debt repayment or foreclosure.
Brookfield financed the maturity date to 2022, along with two one-year extensions, bringing the final maturity date to May 6, 2024.
In June, Kroll Bond Rating Agency downgraded all six of the classes it rates from the mall’s commercial mortgage-back security. The downgrades came after Trepp, a firm that provides information on commercial mortgages, reported in April that the mall’s loan was transferred because of an “imminent maturity default” and that it would go into maturity default in May. A maturity default happens when the borrower can’t refinance their loan, leaving them with a large “balloon” payment.
Since taking over as the mall’s receivers, Russo and Dorsey have hired Centennial Real Estate Management LLC to manage Providence Place under a one-year agreement.
They have also been working closely with Macy’s management amid uncertainty over whether the retailer will vacate its location in Providence Place. Russo and Dorsey confirmed Tuesday that Macy’s – an anchor tenant occupying more than 200,000 square feet – will remain in Providence Place in the “immediate future.”
Russo and Dorsey also said Tuesday that they plan to add new tenants, address security protocols, improve housekeeping, make facility repairs and fix or replace some equipment. They said parking improvements will also begin in the new year. The receivers also say they are beginning to meet with tenants and community leaders and plan for more community engagement opportunities.
Katie Castellani is a PBN staff writer. You may contact her at Castellani@PBN.com.
