Bullish on Worcester, Synergy Picks up Second Major Downtown Office In 2-Building PurchaseMarch 02, 2023
Worcester — Adding to its 2019 investment entrance into the city of Worcester, Synergy Investments has acquired Chestnut Place, a 273,304 SF two-building office complex located in the central business district of Worcester, for $10.5 million. The two-building transaction includes One and Two Chestnut Place. According to a release the buildings are over 80% leased. Included in the acquisition is a 211-car garage located beneath One Chestnut and a 37-car surface parking lot located at 55 Elm Street.
One Chestnut Place was originally constructed in 1990 and is one of just five class-A office properties in downtown Worcester. The iconic, eleven-story building totals 234,786 SF, and among its tenants, is home to Fallon Health headquarters. Two Chestnut Place was originally constructed in the 1800s and underwent a complete renovation in the 1980s. The building totals 38,844 SF of office space.
“We are excited to double down on our commitment to Worcester,” acclaimed Synergy Founder and CEO, David Greaney. “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.”
Chestnut Place represents Synergy’s second major office building transaction in downtown Worcester. In 2019, Synergy purchased the 24-story glass tower located at 446 Main Street for $16.5 million. Combined, Synergy Investments owns two Class-A office buildings totaling over 500,000 SF.
The seller of Chestnut Place is Hertz Investment Group of Woodlawn Hills, CA., a private equity commercial real estate firm that owns and operates an institutional-quality portfolio of commercial real estate throughout the U.S. Hertz acquired Chestnut Place in 2015.
The brokerage team of James G. Umphrey and Brian A. Johnson at Worcester-based Kelleher & Sadowsky represented both Synergy Investments as the buyer and Hertz Investment Group as the seller in the trade of Chestnut Place. Synergy is one of the largest and most active landlords in Massachusetts with a growing portfolio of approximately 5 million square feet, providing space to more than 400 businesses and organizations.David Greaney