Providence Place Mall to be Placed Into Receivership

Providence Place Mall to be Placed Into Receivership

 

On Thursday, Rhode Island Superior Court Judge Brian Stern approved a petition on the record to place the Providence Place Mall into receivership.

GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST

The order comes after months of financial distress for Providence Place.

Stern will formally enter it on Friday.

 

Latest for Mall

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

In April, GoLocal first reported the growing financial distress for Providence Place Mall.

One of the country's top real estate data companies is reporting that the loan supporting Providence Place Mall is in distress.

According to Trepp, a “Rhode Island Mall Loan Sent to Special Servicing. The $254.9 million #CMBS loan was transferred due to imminent maturity default. The collateral contains 980,711 square feet of retail space in a Providence, RI mall.”

A CMBS loan is a “Commercial Mortgage-Backed Securities."

Trepp, in an email to GoLocal, confirmed the mall in question is Providence Place Mall.