One Citizens Plaza mortgage in trouble

By Sarah Mulholland and John Gittelsohn
Bloomberg News

PROVIDENCE - A $43.5 million mortgage on One Citizens Plaza, a 224,089 square-foot office building that houses the headquarters of Citizens Financial Group in Providence also ran into trouble this month before its Jan. 11 maturity date, according to Fitch.

Citizens is a tenant in the 14-story building, a spokeswoman confirmed.

Other "key" tenants include: Adler Pollock & Sheehan, Café Nuovo, Café LaFrance, Smith Barney, Nixon Peabody, Roosevelt & Cross, UBS Financial Services, Merrill Lynch, and Burns & Levinson, property management company MPM lists on its website. It opened in 1990.

Though the building was 98 percent occupied as of September, the borrower didn’t repay the mortgage originated by Wachovia Corp. in 2006, Bloomberg data shows.

“We are just beginning communications with the lender about this loan,” said David Snyder, chief financial officer of KBS Realty Advisors, a private-equity real estate investment company in Newport Beach, Calif., that owns the property. “At this juncture we are unable to predict the outcome,” he said in an email.