During a hearing on Wednesday, Rhode Island Superior Court Associate Justice Brian P. Stern made attorneys Mark Russo and John Dorsey of the Rhode Island-based law firm Ferrucci Russo Dorsey the permanent receivers of the Providence Place Mall. The pair had served as temporary receivers since Nov. 1.
The mall had to enter court-appointed receivership because its now-former owners, Brookfield Properties, defaulted on its payments of a $305 million loan. In court on Wednesday, Stern said he’s been pleased with the work the court-appointed lawyers have done to date in their capacity as temporary receivers.
“The steps that appear to have been taken so far is certainly in the best interest to the estate. I certainly appreciate all the hard work that’s gone into it,” he said.
Dorsey spent about 25 minutes discussing what steps he and his co-receiver have taken so far, and their plans for the future.
Among the highlights he mentioned is formalizing an agreement with a new management group, Centennial Real Estate Management LLC, which specializes in shopping center revitalization. Dorsey also said they have increased the number of security and housekeeping staff working hours, and they have also begun conversations with anchor store Macy’s in hopes of getting the retailer to stay in the mall.
“I think they’re very appreciative to have an open line of communication with the receivership estates,” said Dorsey. “We plan to make sure that they know this process is a resource for them, and we work very hard to try and make sure that things that need to be addressed are addressed.”
Dorsey said he and his team are still working out whether the mall is currently operating at a loss, but one bright spot he said is the high rate of tenancy. He said the occupancy rate is over 88%.
The attorneys said they may try to sell the Providence Place mall as soon as next year, but that it’s too early to say whether the building will continue its life as a mall.
“The shape of retail is changing nationwide. That’s clear. And so part of this diligence process that we’re going through wants to keep an open set of eyes as to all options,” said Dorsey. “But we’ve had good tenant interactions so far, and so we’re going to continue to support that.”
