Providence Place mall’s penthouse movie theater is poised for a remake under a new lease agreement that could start as soon as Nov. 1, pending court approval.
Mark Russo, the court-appointed receiver for the downtown shopping center, announced plans to bring in Apple Cinemas to operate the movie theater in a press release Thursday. Russo also filed a petition in Providence County Superior Court the same day, seeking permission from Judge Brian Stern to finalize the new lease agreement with the regional movie theater operator.
“This represents an important step forward for Providence Place and its future,” Russo said in a statement. “We’re pleased to have reached an agreement with Apple Cinemas — an experienced and growing regional operator — and we’re confident this will bring new energy and an enhanced movie-going experience to the mall.”
The proposed lease, which has already been signed by Russo and by Apple, according to court documents, comes just before the departure of the existing movie theater operator, Showcase Cinemas, owned by National Amusements. Showcase was set to end its 23-year run in Providence on Jan. 31, but Russo sought to cut ties early and find a new movie theater operator.
Stern approved Russo’s request to end the existing contract with Showcase on Thursday, according to court documents.
Showcase did not respond to inquiries for comment Friday. However, its website notes that it will cease operations at Providence Place on Oct. 26 “due to a business decision.”
The 128,000-square-foot cinema contributed nearly 10% of the mall’s annual rent in 2024 — the second-largest source of income after Boscov’s — making its occupancy critical to the mall’s financial future. The shopping center has struggled to stay afloat amid shifts in shopping habits and the loss of flagship stores, culminating in receivership — the state-level equivalent of bankruptcy — in October 2024. The receivership was prompted by a lawsuit from a group of private lenders who alleged they were owed $259 million from a 2011 mortgage loan taken out by the mall owner, Brookfield Properties.
Since taking over the operations and finances, Russo has brought in a new management company, added security and authorized major infrastructure repairs, while also securing court permission to list the property for sale. A listing was slated to hit the market in September, but as of Friday, the property has not been publicly advertised online.
Sarah Dell, a spokesperson for Russo, said in an email Friday that the process to prepare the property for sale has begun, but that a few “procedural and operational matters” still needed to be completed.
“These steps are typical in a court-supervised process, and reflects the commitment to maximizing the property’s value and ensuring a smooth sale process,” Dell said.
Russo also touted the new lease with Apple Cinemas as part of larger efforts to rejuvenate the mall.
“This is part of our broader effort to position Providence Place for long-term success by taking advantage of opportunities that add appeal and value for visitors, other tenants, and the community,” Russo said.
According to court filings, Apple Cinemas was one of several movie theater operators that expressed interest in taking over the Providence Place movie theater. The number of other offers, and the identities of the companies, was not disclosed.
However, Russo wrote in the court petition that Apple Cinemas’ offer had the best terms and conditions, and that he was “impressed” by the company’s operations at the 10-screen theater next to the Warwick Mall.
Apple Cinemas did not immediately respond to requests for comment Friday. A copy of the lease was submitted to Stern for review, but not available for public view.
A court hearing on Russo’s motion for the new lease with Apple Cinemas has been scheduled for Monday, Oct. 20, at 10 a.m., according to the public docket. If approved, Apple could take over operations on Nov. 1, with plans for an “upgraded movie-going experience” in its “signature format,” according to the press release. Details will not be shared until after court approval.
The 1.4-million-square-foot shopping center opened in 1999 after a series of delays and changes to financing and development terms. The final funding package for the $460 million project featured a state bond and a tax treaty with the city of Providence. The state deal used mall sales tax revenue to repay the debt on the bond that paid for construction. The state made its final $73 million payment on the bond in 2019.
The 30-year tax treaty with the city of Providence is set to end in 2028. Under the current agreement, the mall pays $500,000 a year in city property taxes. If taxed at fiscal 2026 city commercial rates, the property would be paying nearly $21.4 million in taxes based on its 2025 assessed value of $730.8 million.
A change in movie theater tenant does not affect the property’s tax payment to the city.
This story was originally published by the Rhode Island Current.
