When Boston real estate firm Synergy decided to renovate the former Fallon Health headquarters in downtown Worcester and turn the building into residential apartments, the firm was tackling two problems at once: the housing shortage and the question of what to do with an 11-story tenant-less structure in the heart of the city.
What resulted was the largest office-to-residential conversion in Massachusetts history. Branded as Altitude Worcester, Synergy began work on the project after Fallon vacated the building in 2025. By the end of summer 2026, tenants began moving into the newly built apartments.
Converting the office space into living space made sense for many reasons, not the least of these was the brick facade, said Dave Greaney, founder and CEO of Synergy.
“It felt more residential,” he said.
Aesthetics aside, working within an existing structure is inherently easier and faster, he said. Although there are significant undertakings in a project like Altitude, such as converting plumbing originally designed for communal bathrooms into individual kitchens and bathrooms for each unit, having the bones of the building in place helps speed things up, making more housing available sooner.
Elevators are in place, and in the case of Altitude, electrical setups were already in good shape.
The puzzle architects were tasked with instead was determining how many – and what size and shape – of apartments could fit on each floor. The full renovation, which was expected to cost $73 million, produced 198 apartments varying from one-, to two-, and three-bedroom units, with several layout options for each. On top of this, the building was fitted with a series of amenities, including a rooftop deck, swimming pool, fitness center, and pet spa.
Another upside to conserving preexisting buildings is it reduces waste and environmental impact, said Greaney. By repurposing a building like Altitude, developers are salvaging brick, glass, concrete, and metals already in place. And on top of that, because they’re not building from the ground-up, neighborhood disruptions are minimized.
Greaney is optimistic the building will help attract working-class professionals to area businesses, especially those in higher-up positions who are looking for luxury amenities.
Synergy received extensive local and state support for the project from both public and private entities. The Rhode Island-based Washington Trust provided $47.57 million in financing and MassDevelopment provided a $3.6-million Housing Development Incentive Program tax credit bridge loan.
Other public incentives included a $4-million HDIP award and a $3.6-million Commercial Conversion Tax Credit from the Massachusetts Executive Office of Housing and Livable Communities. The City of Worcester provided a 15-year tax increment exemption.
Rents range from $1,895 a month for certain studios to $4,100 for certain two-bedroom apartments, according to the leasing website. Layout sizes vary from 404 square feet to 1,211 square feet.
The renovation included an adjacent building converted into 22 income-restricted condominiums. The condominium project, formerly known as Two Chestnut Place, has been rebranded as 22 Elm and will be restricted to residents making 80% of the area median income with assets up to $155,000.
Given the speed and scope of the project, as well as the ongoing housing shortage, it’s likely Altitude Worcester could become a blueprint for future housing developments across the state.
Monica Benevides is a correspondent for Worcester Business Journal.
