Worcester, MA — The largest office-to-residential conversion project in Massachusetts is moving forward in downtown Worcester, as MassDevelopment and The Washington Trust Company finalize more than $50 million in financing to support the creation of nearly 200 new apartments.
The $51.17 million financing package will enable an affiliate of Synergy to convert the former Fallon Community Health Plan headquarters at 10 Chestnut Street into 198 market-rate residential units. The project marks a major step in repurposing underutilized office space in the wake of shifting workplace trends.
Washington Trust is providing $47.57 million in primary financing, while MassDevelopment is contributing a $3.6 million Housing Development Incentive Program (HDIP) tax credit bridge loan. Additional support includes a $4 million HDIP award and a $3.6 million Commercial Conversion Tax Credit from the state, along with a 15-year Tax Increment Exemption from the City of Worcester.
State officials say the project highlights the role of public-private partnerships in revitalizing urban cores. Eric Paley said redeveloping underused office space into housing will boost economic activity and bring new life to downtown areas.
“By converting an underutilized office building into nearly 200 apartments, this project will increase foot traffic and support local businesses,” Paley said.
Navjeet Bal added that the agency is proud to help bridge public incentives with private financing to make the development possible.
Once complete, the 11-story building will include 41 two-bedroom units, 85 one-bedroom units, and 72 studio apartments. Planned amenities include a fitness center, rooftop deck, outdoor patio, swimming pool, and underground parking. Construction began in May 2025 and is expected to be completed by August 2026.
Local officials say the project is key to Worcester’s broader housing and economic development goals. Joseph Petty said the conversion will help meet demand for housing while contributing to the city’s ongoing downtown revitalization.
“Rehabilitating a prime building in the heart of Worcester will spur additional activity and opportunity in an area experiencing renewed vitality,” Petty said.
Eric Batista noted that such conversions also help stabilize property values and restore occupancy levels in office buildings impacted by the pandemic.
Project leaders emphasized the importance of collaboration in bringing the development to life. Ryan Chamberlain said converting office buildings into housing is one of the most effective strategies for strengthening urban centers.
“This project brings life back to a vacant property, supports local businesses, and expands housing access,” Chamberlain said.
As cities across the country grapple with declining office demand, the Worcester project stands as a landmark example of adaptive reuse—transforming legacy office space into vibrant residential communities while driving economic growth.
