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Providence Place: one year later

By Dave Bodamer

Judging by the growth during its first year of operation, Providence (R.I.) Place was probably worth the 15-year wait that it took to get built.

Developed by Commonwealth Development Group of Providence for $460 million, the four-level shopping center that crosses the Woonasquatucket River was delayed repeatedly by ownership changes, funding problems and numerous design reviews. When the center finally opened in August 1999, it had endured one of the lengthiest and most expensive development processes in the history of regional malls, said Dan Lugosh, senior partner of Commonwealth.

However, the 1.4 million-square-foot Providence Place opened really in name only. Only 34 of the center’s stores, one of its anchors and none of its restaurants, opened with the center. Now, more than 87% of the center’s gross leasable area is operating, including all three anchors — Nordstrom, Filene’s and Lord & Taylor — 120 in-line stores, a 16-screen Hoyt’s multiplex cinema and an IMAX and seven restaurants. Moreover, with more scheduled openings to come, by November the center should be operating at 95% occupancy.

Despite the gradual rollout, the mall still attracted more than 12 million visitors during the first year, with numbers rising every month. Providence Place General Manager Joe Koechel said that the summer of 2000 was particularly successful because of a good tourist season for the city that brought lots of people into the center. Its proximity to downtown Providence has helped make it a destination.

“It’s been just a matter of pushing to get a majority of stores open in a short period of time,” Koechel said. “We opened with 34 stores and we’re shooting for 145 to 150 by the time the holiday season rolls around.” And as of now, sales per square foot are approaching $400 at the center.

The center’s building is split into two halves that are connected by a glass atrium that spans the Woonasquatucket River. The bridge and the Westin Hotel (which is connected to the center) were also not complete when the center opened. Both were finished and opened to the public in May. Providence Place is also designed to complement the architecture surrounding the nearby state capitol.

The process to get the center built began in 1983 when Koechel was then working with Syracuse, N.Y.-based Pyramid Management Group. Commonwealth Development, a private group that includes several former Pyramid executives, bought out majority owner Robert J. Congel of Pyramid in 1996. In 1997 Commonwealth settled an ownership dispute with Alex J. Conroy, who said he initiated the project in 1985 while working with Indianapolis-based Melvin Simon & Associates.

Land assembly, which required ground and/or air rights to 21 separate parcels, a river and railroad lines, was also a difficult process, said Alden S. Raine, a private consultant who served as public-approvals coordinator for Providence Place.