Largest Massachusetts Office-to-Resi Project Lands $51M

March 17, 2026

Finance & Investment Development Market Rate News More Northeast

Construction is already underway and completion is set for late summer.

Synergy Investments has obtained a $51.2 million financing package for the largest office-to-residential conversion in the entire state of Massachusetts. The project consists of the adaptive reuse of a 189,076-square-foot office building into a 198-unit multifamily property in Worcester.

Construction work began in May 2025, with completion scheduled in August.

The financing includes a $47.6 million note issued by the Washington Trust Co. and a $3.6 million Housing Development Incentive Program tax credit bridge loan provided by MassDevelopment.

Other partners include the Executive Office of Housing and Livable Communities, which granted a $4 million HDIP award and a $3.6 million Commercial Conversion Tax Credit award, as well as the City of Worcester, which provided a 15-year Tax Increment Exemption.

Upon completion, the 11-story building will comprise studio, one- and two-bedroom units. Amenities are set to include a gym, swimming pool and rooftop deck, among other features.

The former office building at 10 Chestnut St. debuted in 1990 and used to serve as the headquarters of Fallon Health; however, the company relocated to One Mercantile St., a 2012-completed, 207,000-square-foot office building less than 1 mile away. The multifamily project is within the city’s downtown area and close to the Worcester train station and Interstate 290.

Synergy’s conversion efforts extend beyond Worcester

Synergy is active outside Worcester as well. Earlier this year, it filed plans to convert a mostly vacant office building in Boston to a multifamily community of more than 250 units. Notably, that building is more than a century old, constructed between 1902 and 1904.

This latest submission landed as the City of Boston extended the application deadline for conversions to the end of 2026. This program fast-tracks projects and awards grants for developments that fit certain criteria, such as the inclusion of affordable housing and ground-floor retail, among other requirements.

Since the program’s inception in 2023, developers have submitted 24 applications to convert a total of 1.4 million square feet of office space into a multifamily development pipeline of 1,730 units in Boston. However, just one development has reached completion so far, a 15-unit community at 281 Franklin St.