The historic brick building originally built by Dr. Horace Fales in the mid-1800 was purchased by the state hospital in 1895 to house convalescent patients and staff. Since that time it functioned as a component of the State Hospital Complex and later the State Office Complex. In 1951, the rear addition was constructed as a dorm for staff nurses. The historic building and addition were renamed Ladd Hall in honor of Dr. Henry Ladd.
On August 28, 2011 Tropical Storm Irene brought torrential downpours of rain and historic flooding to Vermont. The storm stranded thousands behind washed out roads, destroyed dozens of homes, and changed the landscape of Vermont. Waterbury sustained heavy flooding and severe damage, which qualified the town to receive federal funds for recovery and rebuilding. It is, in part, these funds which made the South Main Apartments project possible.
Downstreet and Housing Vermont partnered to renovate the historic portion of Ladd Hall in order to preserve the historic character of the building. The 1951 addition was demolished and a new three-story addition, together with the historic Ladd Hall portion, now provides 27 new rental units. The South Main Apartments project was awarded LEED certification for its energy efficiency, building envelope and healthy home design.