MassDevelopment and Washington Trust provide $51.17m in financing to OCP Worcester Owner LLC

Worcester, MA MassDevelopment has partnered with primary lender The Washington Trust Company to provide $51.17 million in loan financing to OCP Worcester Owner LLC, an affiliate of real estate development company and property owner Synergy, for the largest office-to-residential conversion in Massachusetts to date. Synergy will use loan proceeds to redevelop and convert the former Fallon Community Health Plan headquarters located at 10 Chestnut St. into 198 new market-rate apartments.

Washington Trust provided $47.57 million in loan financing while MassDevelopment provided a $3.6 million Housing Development Incentive Program (HDIP) tax credit bridge loan. The Executive Office of Housing and Livable Communities also provided a $4 million HDIP award and a $3.6 million Commercial Conversion Tax Credit award. Additionally, the City of Worcester is supporting the project through a 15-year Tax Increment Exemption. 

“Projects like this demonstrate how strategic public-private partnerships can unlock new economic potential in our downtowns,” said Economic Development secretary Eric Paley, who serves as chair of MassDevelopment’s board of directors. “By redeveloping an underutilized office building into nearly 200 apartments, Synergy is helping bring new residents, foot traffic, and economic activity to downtown Worcester while making productive use of existing infrastructure.”

“MassDevelopment applauds Synergy for their leadership in bringing 198 new apartments to downtown Worcester,” said MassDevelopment president and CEO Navjeet Bal. “We are proud to bridge support from the Commonwealth and financing from our partners at Washington Trust to help make this important project possible.”

Once complete, the building will feature 41 two-bedroom units, 85 one-bedroom units, and 72 studios. The building will also feature amenities such as a fitness center, resort-style swimming pool, outdoor patio, rooftop deck, and underground parking. Construction began in May 2025 and is expected to finish this August.

“Office-to-residential conversion represents another significant opportunity for Worcester to meet its aggressive housing expansion target,” said mayor Joseph Petty. “In this case, rehabilitation of a prime building in the heart of Worcester will also spur additional activity and opportunity to the downtown core, an area that’s seeing a resurgence in vitality. I want to thank MassDevelopment, Washington Trust Company, and Synergy Investments for making this historic investment in Worcester’s future.”

 Washington Trust’s commercial real estate group provides financing for the construction, refinancing, or acquisition of investment real estate projects throughout New England.

“The City of Worcester appreciates MassDevelopment facilitating the financing of this project in partnership with Washington Trust Company,” said Worcester City Manager Eric Batista. “Office-to-residential conversions like this project provide a variety of benefits including stabilizing the property value in the wake of the pandemic’s impact on office buildings, restoring the occupancy of the building and contributing to the vitality of downtown, and addressing the community’s need for more housing opportunities.”

“Washington Trust is proud to lead the financing for one of the most significant conversion projects in Massachusetts,” said Washington Trust Senior Executive Vice President and Chief Commercial Banking Officer James C. Brown. “This investment reflects our belief in the importance of strengthening communities and driving economic growth.” 

Synergy is a vertically integrated real estate company that combines investment, development, property management, and hospitality expertise to support projects from acquisition through operation.

“Converting underutilized office buildings into new housing is good policy and is one of the most effective ways to strengthen our urban centers. These projects bring life back to vacant properties, support local businesses, and expand access to housing in our neighborhoods,” said Synergy Vice President Ryan Chamberlain. “This complicated project could not have been achieved without a true public-private partnership. We are deeply grateful to the City of Worcester, the Executive Office of Housing and Livable Communities, MassDevelopment, and Washington Trust for their commitment to creating more housing that supports downtown revitalization. We are excited to deliver 198 new apartments to downtown Worcester later this year and look forward to identifying future opportunities to advance this strategy across the Commonwealth.”