Former Providence mayor rescues Providence Place mall
In 1999, Pyramid Management Group was one of the original developers of Providence Place mall in Providence, R.I. Now the Syracuse-based Pyramid will return to the 1.4 million-sq.-ft. property to operate it as part of an investment group formed by the city’s former mayor Joe Paolino that won the bidding in receivership.
“As mayor, I was part of the early vision that helped bring this project to life and reshape downtown,” Paolino told Providence’s WPRI news.
“We’re approaching this with a deep sense of responsibility, not just as owners, but as members of this community,” Paolino said. “Providence isn’t just where we invest, it’s home, and we’re committed to making Providence Place something the city can be proud of again.”
The group won the mall with a bid of $133 million in a receivership auction. It was not the highest bid received for the property; a $152 million bid was proffered by SR Capital Management. But Superior Court Judge Brian Stern expressed that the Pulino group’s offer promised a superior plan for the mall’s revitalization.
READ MORE: Pyramid Management announces aggressive repositioning of Providence Place Mall
“After a rigorous and competitive process, we recommended a partnership that demonstrated the financial strength, operational expertise, and long-term commitment necessary to ensure a successful future for Providence Place,” Russo said in a statement after the decision.
Russo helped keep Providence Place alive over the past year and a half by bolstering security, addressing parking and maintaining lease agreements with anchor tenants.
Pyramid is the largest privately held owner of malls in the Northeast. Its 2.4 million-sq.-ft. Destiny USA is one of the 10 largest malls in the United States.
“Pyramid has built its business on taking complex retail environments and turning them into destinations people want to visit again and again,” Pyramid CEO Stephen Congel said in a statement.
“Providence Place already has strong fundamentals: location, scale, and traffic,” he added. “Our focus will be on reintroducing the right mix of retail, dining, and entertainment, and creating an environment that keeps people coming back.”
