Providence Place Mall $254.9M Loan “Transferred Due to Imminent Maturity Default” Says Report
Tuesday, April 23, 2024
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."
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTTrepp, in an email to GoLocal, confirmed the mall in question is Providence Place Mall.
Functionally, this means that a loan on Providence Place is nearing its maturity date, but the borrower is unable to pay off the full outstanding balance at that time. As a result, the loan is transferred from the primary servicer to a special servicer, who will work with the borrower to try to resolve the impending default, such as by modifying the loan terms or finding a new lender.
According to the mall’s owners, the property features 140 shopping and retail locations; 26 dining options and 4 full-service restaurants in the center of Downtown Providence, and is connected by "The Skybridge" to the Omni Hotel and RI Convention Center.
Trepp, the firm flagging the distress of the loan, “is a leading provider of information, analytics, and services to the Structured Finance, CRE, and Banking markets.”
Providence Place is owned by Brookfield Properties who “operates and develops real estate investments on behalf of Brookfield Asset Management — one of the largest alternative asset managers in the world.”
At the time of publication Brookfield had not responded to questions.
In the short term, there should be no impact on the operation of the Providence Place Mall.
More Uncertainty for Mall
Today, Providence Place has only two anchor locations currently filled by Macy’s and Pennsylvania discount store Boscov’s.
And, in February Macy’s announced a major corporate pivot and massive store closings over the next three years.
Macy’s Store Closing
According to Macy’s announcement earlier this year, the retailer is "closing approximately 150 underproductive locations, including approximately 50 by the end of the fiscal year, and prioritizing investment in approximately 350 go-forward locations and the continued expansion of small-format stores.”
The company did not identify which stores would close over the next three years. Besides the anchor store in Providence Place, there is a second Macy’s store located in Rhode Island at Warwick Mall.
The Macy's announcement potentially puts Providence Place in the crosshairs. If the Providence Place location survives the store closures and the company is successful at its strategic move to a higher luxury position — the store could be a destination and help drive the mall's resurgence.
This story was first published at 4/22/24 2:01 PM
Related Articles
- Another Mini Crime Wave Hits Providence Place - What Is Mall’s Future?
- 14-Year-Old Boy Robbed of Sneakers Off His Feet, Jewelry at Providence Place Mall Friday Night
- La Soga Salvation—Action Thriller Set and Filmed in RI—to Premiere at Providence Place
- Man Leaving Providence Place Mall Jumped by Group of Teens, Assaulted, and Robbed
- Providence Place Mall Security Orders Patron to Delete Video Following Incident
- Multiple Juveniles Banned From Providence Place Mall Following Incidents on Saturday
- VIDEO: Providence Place Mall Security Tackles Two in Incident on Saturday
- Police Identify Murder Suspect in Fatal Providence Place Mall Stabbing
- PC Graduate’s Film “Apple Cinema” Screening at Providence Place
- Man Reports Having Gun Pointed at Him Leaving Providence Place Mall
- Amazon’s New Type of Store—“4-Star”—Opening at Providence Place Mall
- Providence Place Mall Seeks New Tax Treaty — “Cannot Afford to See It Abandoned,” Says Igliozzi
- Man Attempts to Stab Providence Place Mall Security Guard — Charged With Felony Assault
- “Luxury Streetwear Store” Coming to Providence Place Mall
- A New Clothing Store is Coming to Providence Place Mall
- You Can Get Avocado Toast & More at This New Spot at Providence Place Mall
- This Japanese Apparel Brand is Coming to Providence Place Mall
- What Does Macy’s Announcement Mean for Providence Place Mall?
- 59-Year-Old Man Jumped and Assaulted by Teens at Providence Place Mall
- Providence Place Mall in Flux — Another Store Closing, New Restaurant Coming, and More Changes
- Juvenile Victim of Assault and Attempted Robbery at Providence Place Mall
- Talbots Store Closing at Providence Place Mall
- Police Investigating Break-In at Providence Place Mall
- Man Threatens Security With Knife at Macy’s at Providence Place Mall
- The Death and Life of Providence Place – Architecture Critic Will Morgan
