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KS Partners sells approved downtown Boston office conversion site

KS Partners sells approved downtown Boston office conversion site

Built World Boston, MA local

The Woburn developer exits a 95-unit project approved under Boston's conversion incentive program.

Today: KS Partners sells approved conversion site

Overview

Updated 1 hour ago

A Woburn developer sold a downtown Boston office building approved for conversion into 95 apartments for $8.6 million, or about $90,500 per approved home. KS Partners won the conversion approval in April 2025, then sold the site rather than build it.

Boston's conversion program gives developers up to 75 percent off property taxes for 29 years, plus state grants. The sale shows how hard it remains to turn vacant offices into housing even with those incentives.

Why it matters

Boston expects office conversions to create 1,700 downtown homes; each developer that sells an approved site instead of building delays that housing.

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Key Indicators

$8.6M
Sale price of approved 95-unit conversion
KS Partners sold the approved site instead of building it.
95
Approved apartments in sold project
The 85 Devonshire and 258-262 Washington conversion was approved in April 2025.
1,700
Homes Boston's program targets
Citywide goal across 24 applicants and 29 buildings.
1
Conversions under construction in June 2025
Only 281 Franklin Street had broken ground when the state announced $7 million in grants.

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People Involved

Organizations Involved

Timeline

June 2019 September 2026

6 events Latest: Today
Tap a bar to jump to that date
  1. KS Partners sells approved conversion site

    Today Sale

    KS Partners sold the approved 95-unit conversion site for $8.6 million instead of building it.

  2. State awards $3.4 million for Court Square

    Funding

    Massachusetts awarded KS Partners $3.4 million of a $7 million grant round for downtown conversions.

  3. Court Square conversion application filed

    Regulatory

    KS Partners filed plans to convert 15 Court Square into 80 apartments under the city's incentive program.

  4. 95-unit Devonshire conversion approved

    Regulatory

    Boston Planning Department approved KS Partners' plan for 85 Devonshire and 258-262 Washington streets.

  5. Court Square loan enters special servicing

    Financial

    The loan on 15 Court Square matured with a $25 million balance and was placed into special servicing.

  6. KS Partners buys 15 Court Square

    Acquisition

    KS Partners paid $29 million for the 11-story office building, then 98 percent leased.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2001-2005

Lower Manhattan conversion push (2001-2005)

After the September 11 attacks drove companies out of Lower Manhattan, office vacancy passed 20 percent. The city and federal government channeled Liberty Bond subsidies and tax breaks into residential conversions, turning empty towers into apartments.

Then

Thousands of apartments emerged from converted offices, reviving the Financial District as a 24/7 neighborhood.

Now

The district's residential base cushioned it when office demand fell again.

Why this matters now

Public subsidies large enough to close the gap between conversion costs and apartment rents made Lower Manhattan work. Boston's smaller incentives are testing the same math.

2022-2026

Chicago LaSalle Street conversions (2020s)

Chicago's city government offered property tax incentives to convert aging LaSalle Street offices into housing. The program aimed to create thousands of units in buildings emptied by remote work.

Then

Fewer conversions reached construction than proposed, as high interest rates pushed financing costs above projected apartment rents.

Now

The program became a catalog of obstacles for office conversions in expensive office markets.

Why this matters now

Chicago's experience foreshadows Boston's: approvals run ahead of construction because the financials rarely close.

Sources

(5)