BOSTON–A prominent office building in the heart of Downtown Crossing is being lined up for what could become the largest conversion project yet under Boston’s office-to-residential tax incentive program, according to reporting by the Boston Business Journal (BBJ).
As reported by BBJ, an affiliate of real estate firm Synergy has filed plans to convert the 11-story building at 294 Washington St. into 255 apartments, while maintaining retail space on the ground floor. The property sits immediately beside the historic Old South Meeting House and along the Freedom Trail, making it one of the most visible redevelopment proposals to emerge from the city’s conversion initiative.
BBJ reported that this proposal would be the biggest project to seek tax relief through Boston’s office-to-residential incentive program, which was launched by Mayor Michelle Wu in 2023 and has since been extended twice, now running through the end of 2026. According to BBJ, the program is designed to address both Boston’s housing shortage and the glut of aging, difficult-to-lease office space downtown.
The Washington Street proposal also marks Synergy’s first conversion project in Boston, BBJ noted. The firm has gained attention in recent years for acquiring office buildings at discounted prices and upgrading them with new amenities, rather than repositioning them for residential use. As BBJ previously reported, Synergy publicly supported the city’s conversion program before submitting this application.
The building itself dates back to the early 1900s and wraps around Old South Meeting House toward Milk Street. According to BBJ’s review of permitting documents, the structure is described as “predominantly vacant,” reflecting broader struggles in the downtown office market. BBJ reported that roughly one-quarter of Boston’s downtown office space is currently empty.
Land records cited by BBJ show that the property was purchased for $94.5 million in 2016 by an affiliate of Goldman Sachs, with Synergy listed as the seller at that time.
As reported by BBJ, the 294 Washington St. proposal is the 22nd property to enter Boston’s office-to-residential conversion incentive program. While only one project—a 15-unit conversion at 281 Franklin St.—has been completed so far, BBJ reported that five additional buildings are currently under construction, collectively adding 306 apartments. Several other projects are in the permitting or approval stages.
In total, BBJ reported that the program has attracted more than 1,500 potential housing units citywide. Developers who participate receive a 75% property tax abatement for 29 years, along with expedited permitting, incentives city officials hope will accelerate housing production while reshaping downtown’s office-heavy landscape.
All information in this article is based on reporting by the Boston Business Journal.
