One Chestnut Place in downtown Worcester. Photo courtesy of Kelleher & Sadowsky
Synergy Investments has paid $10.5 million for a two-building Chestnut Place office complex in downtown Worcester, adding to its holdings in the city.
The company had bought Worcester’s tallest building, the 24-story 446 Main St., for $16.5 million in 2019.
“We are excited to double down on our commitment to Worcester,” Synergy founder and CEO David Greaney said in a statement. “All 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 273,304-square-foot Chestnut Place is over 80 percent leased, Synergy said, and is one of just five class A office properties in downtown Worcester. The 11-story One Chestnut Place tower was built in 1990 and hosts the headquarters of Fallon Health and other tenants. Two Chestnut Place was built in the 1800s and last renovated in the 1980s.
Synergy bought Chestnut Place from an affiliate of California-based Hertz Investment Group, a private equity investment firm. Hertz originally bought Chestnut Place in 2015 as part of a $14 million, multi-property deal, according to public records.
James Umphrey and Brian Johnson of Worcester-based commercial brokerage Kelleher & Sadowsky represented both Synergy and Hertz in the transaction.
“Despite the challenges that the pandemic has presented we continue to see great potential in the city of Worcester,” Synergy Vice President Ryan Chamberlain said in a statement. “This acquisition reaffirms our commitment to the community in what we anticipate will be a great long-term partnership.”
