MassDevelopment has partnered with primary lender The Washington Trust Company to provide $51,170,000 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. in Worcester 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.
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