UPDATED: Receiver Named by Judge Stern for Providence Place Mall Case

UPDATED: Receiver Named by Judge Stern for Providence Place Mall Case

On Friday, Superior Court Judge Brian Stern named John Dorsey, Esq. and Mark Russo, Esq., as the appointed Temporary Receivers “of all the estate, assets, effects, property, and business” in the receivership of the Providence Place Mall.

The order states, ”Receivers shall, no later than five (5) days from the date hereof, file herein a bond in the amount of $500,000.00 with corporate surety thereon authorized to do business in the State of Rhode Island conditioned that the Receivers will well and truly perform the duties of said office.”

This came the same day the Providence Place was officially placed into receivership.

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At stake is more than $254.9 million in loans.

Closure of Macy's

In July, GoLocal exclusively reported:

KBRA, a global full-service rating agency, has announced they have downgraded the rating for Providence Place Mall due in part to what they say is notice that Macy's will close.

“KBRA downgrades the ratings of the six classes of PM certificates from DBUBS 2011-LC3, a CMBS conduit/fusion transaction. The PM classes are rake certificates that derive 100% of their cash flow from the non-pooled components of the Providence Place Mall loan,” said the rating agency.

Further, KBRA reports, “The mall is currently anchored by Macy’s (non-collateral), Boscov’s (19.4% of collateral sf), which backfilled the former Nordstrom anchor space in October 2019, and Providence Place Cinemas 16 & IMAX (9.8%). According to the servicer, the borrower has indicated that the non-collateral Macy’s is on the list of locations planned for closure.

Roy Chun of KBRA confirmed the report with GoLocal.

“According to the servicer commentary, the borrower has indicated that the non-collateral Macy’s is on the list of locations planned for closure. The servicer is the servicer of the loan which happens to be Wells Fargo,” said Chun in an email to GoLocal

This story was first published 11/1/24 4:23 PM and was updated 11/2/24 3:35 AM