MassDevelopment, Washington Trust Fund $51M Worcester Office-to-Residential Conversion

Largest office-to-residential conversion in Massachusetts to transform former Fallon Community Health Plan headquarters into 198 new apartments

Mar. 16, 2026 at 10:19pm

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MassDevelopment and The Washington Trust Company have closed a $51.17 million financing package to support the conversion of the former Fallon Community Health Plan headquarters in Worcester, Massachusetts into a new 198-unit multifamily community. The capital stack includes a $47.57 million loan from The Washington Trust Company, a $3.6 million bridge loan from MassDevelopment, and significant state-level incentives such as a $4 million Housing Development Incentive Program (HDIP) allocation and a $3.6 million Commercial Conversion Tax Credit award.

Why it matters

This project represents the largest office-to-residential conversion undertaken to date in Massachusetts, demonstrating how coordinated public and private capital can be used to accelerate downtown revitalization efforts. The conversion of the former corporate office space into new housing aligns with Worcester's goals to attract new investment and residents to its urban core.

The details

The borrower, OCP Worcester Owner LLC, an affiliate of real estate developer Synergy, is leading the redevelopment and conversion of the 10 Chestnut Street property. In addition to the senior loan and bridge financing, the capital stack includes significant state-level incentives such as a $4 million HDIP allocation and a $3.6 million Commercial Conversion Tax Credit award. The City of Worcester is also supporting the project through a 15-year Tax Increment Exemption, providing long-term property tax relief.

  • The financing package closed on March 16, 2026.

The players

OCP Worcester Owner LLC

An affiliate of real estate development company Synergy, the borrower leading the redevelopment and conversion of the former Fallon Community Health Plan headquarters.

The Washington Trust Company

The primary lender, providing $47.57 million in loan financing for the project.

MassDevelopment

The state's finance and development agency, providing a $3.6 million Housing Development Incentive Program (HDIP) tax credit bridge loan.

Executive Office of Housing and Livable Communities

Awarded a $4 million HDIP allocation and a $3.6 million Commercial Conversion Tax Credit to support the conversion of the commercial space into residential use.

City of Worcester

Providing a 15-year Tax Increment Exemption to support the project and reinvestment in the city's downtown area.

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What they’re saying

“Projects of this kind show how strategic partnerships between government and private developers can unlock new economic potential in urban centers.”

— Eric Paley, Economic Development Secretary, Chair of MassDevelopment's Board

What’s next

With financing and incentive commitments in place, Synergy and its affiliate OCP Worcester Owner LLC are positioned to begin the conversion of the former office headquarters into almost 200 market-rate apartments.

The takeaway

This project demonstrates how coordinated public and private capital, along with strategic incentives, can be leveraged to repurpose older commercial assets into much-needed housing, supporting downtown revitalization efforts in cities like Worcester.