The owner of Worcester Plaza is expanding its presence downtown with the purchase of two more high-rise office buildings.
Boston-based Synergy Investments announced on Friday that it has purchased the two-building complex at One and Two Chestnut Place for $10.5 million. The deal included both buildings, totaling 273,304 square feet, a 211-car garage located beneath One Chestnut Place, and a 37-car surface parking lot at 55 Elm St.
“We are excited to double down on our commitment to Worcester,” Synergy founder and CEO David Greaney said in a press release. “All the of the dynamics that initially attracted us to the city are still in place today. Worcester’s prestigious schools and hospitals, strong city government, the expanding transportation network and growing amenity base are catalysts for continued investment in the city.”
The complex serves as the headquarters of insurance company Fallon Health and is currently over 80% leased, according to Synergy. It was previously purchased by California-based Hertz Investment Group in 2015 for $14 million, according to property records.
One Chestnut Place was originally built in 1990. The eleven-story building is one of five class A office buildings in downtown Worcester. Two Chestnut Place was originally built in the 1800s, but was fully renovated in the 1980s.
The property was most recently assessed for $17.4 million.
Both Hertz and Synergy were represented by Worcester real estate firm Kelleher & Sadowsky.
In 2019, Synergy purchased Worcester Plaza, locally known as the glass tower, at 446 Main St. for $16.5 million.
“Despite the challenges that the pandemic has presented we continue to see great potential in the city of Worcester,” said Synergy Vice President Ryan Chamberlain. “This acquisition reaffirms our commitment to the community in what we anticipate will be a great long-term partnership.”
By Tréa Lavery