Callahan is proud of the progress we’ve made growing our footprint in the Tri-State area. When we opened our White Plains office, we were determined to bring the quality we’re known for to new clients across the markets we know best—multi-family and affordable housing, mixed-use and retail developments, and senior living communities.
Like any region, there’s some level of uncertainty everywhere you look—but we’re excited about what the future holds in the Empire State. Here are a few trends and developments we’re keeping a close eye on:
PACT is a NYCHA program designed to leverage private and non-profit partners to convert eligible public housing properties to Project-Based Section 8. This allows for much-needed capital improvements while maintaining affordability for residents.
Since 2016, more than $7B has been invested into PACT projects, but NYCHA estimates it will take $78B to fully fund the program. There’s a massive opportunity here for meaningful public-private partnerships, though there’s still a lot of work to do.
At Callahan, we routinely work with developers and public agencies to bring affordable housing to life—and we’re optimistic about the positive impact PACT can have in the years ahead.
It’s no secret it’s expensive to live in Manhattan. Over the years, more and more people have looked outside the five boroughs for housing—especially along the Metro-North corridor—finding better value in communities where they can still commute into the city if needed.
We’re expecting to see continued growth in market-rate housing across the suburbs north and east of NYC, extending into upstate New York and parts of New Jersey. This trend opens the door for residents to get into the market without needing to change jobs just to afford it.
Callahan recently completed Alexander Crossing in Yonkers, a project that supports work-from-home lifestyles while still offering proximity to transit. It’s the type of flexible, future-ready development we expect to see more of.
If you can’t build out, build up. That’s the mindset taking hold in places like Port Chester, New Rochelle, and White Plains, where local leaders are updating zoning to allow for taller residential buildings.
In many of these small-to-mid-sized cities, there’s limited space to expand outward, but increased height allowances for MDUs (multi-dwelling units) could help unlock more housing supply where it’s needed most.
This kind of local policy shift could be just the spark needed to get some long-anticipated projects moving, and we’re watching it closely.
This isn’t unique to New York: cities everywhere are dealing with how to repurpose underutilized office and retail buildings. And it’s a bigger issue in Westchester because some of these buildings are so large. Converting them to residential sounds great in theory, but in practice, it’s not always that simple. Between the size and shape, structural constraints, zoning, and cost, it can be a real challenge to make the numbers work.
One potential solution? Blending retail and residential. That’s the approach behind two of our projects, New City and Bay Terrace, where we’re helping turn traditional shopping centers into mixed-use destinations that better reflect today’s living and shopping habits.
Since COVID, our industry has dealt with its fair share of curveballs, from supply chain disruptions and labor shortages to shifting immigration policies and the ever-present wildcard of interest rates and tariffs.
It’s a lot to navigate, which is why strong preconstruction services are more valuable than ever. At Callahan, we help our clients get a clearer picture up front so budgeting and planning doesn’t turn into guesswork. And when it makes sense, our ability to self-perform sitework can create efficiencies that help control costs and improve quality at the same time while most importantly mitigating as much risk as possible.
The New York market and the surrounding Tri-State area represent real opportunity for Callahan. We’re excited to continue working alongside our public and private sector partners to get much-needed projects out of the ground despite the headwinds our industry continues to face.
To learn more on happenings in the New York market or how Callahan can help with your next construction proejct please contact David Morrow or Phil Dinan.
New construction project will create 106 affordable homes and mixed-use development
BRIDGEWATER, MA – April 8, 2025 – Callahan Construction Managers (Callahan), a full-service construction management company headquartered in Bridgewater, Mass. with offices in White Plains, NY announced today that in partnership with its client Just A Start, a Cambridge-based community development corporation, it has marked the topping off of 52 New Street, the organization’s largest residential development to date.
Just A Start promotes equity and creates pathways to economic opportunity by providing affordable housing, career training, and comprehensive support services, and is relied upon daily by residents of communities including Cambridge, Somerville, and beyond. 52 New Street will further that mission by building 106 affordable apartments for families of varying incomes. In addition to the affordable residential component, Callahan is overseeing the construction of 3,875 square feet of commercial space on the ground floor, which will help spur economic activity while delivering essential services to residents and the broader Cambridge community.
“Callahan Construction Managers has been a vital partner in bringing 52 New Street to life,” said Just A Start Executive Director Carl Nagy-Koechlin. “Their expertise and commitment to affordable housing help ensure more families have access to stable, high-quality homes in Cambridge. We’re grateful for their collaboration in making this vision a reality.”
In addition to partnering with Just A Start to provide maximum value against the budget
requirements, Callahan will ultimately deliver a residential facility that complies with Passive
House International standards, in turn creating an ultra-low energy project that aligns with both
city and state goals of reducing energy consumption. The company is also working with Just A Start to drive engagement in Boston’s Youth Build initiative to bring more young people into the trades.
“The mission of Just A Start leads to creating better outcomes for individuals and families that have the potential for greater things – but they need a solid foundation to build from,” said Stephen Callahan Jr., Vice President – Business Development for Callahan. “At Callahan, we have been honored to partner with Just A Start and be a part of the team that is bringing 52 New Street to fruition, with today’s milestone an achievement for all stakeholders as well as the residents of Cambridge.”
For more information on Callahan’s affordable housing portfolio, click here.
# # #
There was a time when LEED certification dominated sustainability conversations in construction. It played a crucial role in making the industry more environmentally aware by rewarding buildings for incorporating green features. While LEED remains impactful, a shift is occurring toward another standard: Passive House Certification (CPHB).
Prescriptive vs. Performance-Based: Understanding the Key Difference
One of the biggest distinctions between LEED and Passive House is their approach to achieving energy efficiency:
What Makes a Building Passive House Certified?
Unlike LEED, there is no single template or set of mandatory design choices to achieve Passive House Certification. Instead, buildings must meet strict energy performance targets through a combination of strategies. Here are the key elements:
Breaking the Cost Myth: Passive House Doesn’t Always Mean More Expensive
A common misconception about Passive House construction is that it carries a hefty price tag. However, many developers are finding that Passive House projects can be cost-neutral when considering long-term energy savings and reduced reliance on mechanical systems.
Key cost factors to consider:
Why Callahan is Leading the Way
At Callahan, we recognize that Passive House is the future of high-performance building. That’s why along with multiple successfully completed, Passive House Certified Projects and counting, we now have over 30 Certified Passive House Builders on staff, ready to guide clients through the process. By taking a collaborative, lessons learned, performance-focused approach, we help developers meet certification standards while maximizing efficiency and cost savings.
“We hired Callahan because your project team possessed the flexibility and keen awareness that the success of the project hinged on the coordination of multiple professionals, some of whom represent non-traditional design and building techniques. Callahan was able to adapt quickly to multiple challenges posed by Passive House design and tolerances. Callahan seamlessly coordinated the entire project team, driving solutions to unique building challenges while pressing hard towards our project deadline.”
-Kurt Therrien, President, The Kensington Investment Group
For more information on our sustainable building expertise or to learn more about our CPHB-certified team, contact us today.
Callahan Construction and Velney Construction Team Up to Meet Twin Challenges
By Pat Callahan
The need for housing in Massachusetts and across the country is immense. As a general contractor and construction manager with a wealth of expertise in building housing of all types (i.e. market-rate, affordable, age-restricted) Callahan sees how critical it is to bring these projects online. However, especially in today’s market, it is extremely challenging.
One of the biggest challenges we see in the industry right now goes beyond simply financing the work at the state level. The 2021 MBTA Communities law as well as the recently passed Affordable Homes Act, are major steps in the right direction, but we see some additional steps needed to truly maximize the impact of public dollars – which is why our company recently took the proactive step to form a strategic partnership with Somerville, -based contractor Velney Construction.
Right now, the construction industry faces tremendous change as generational shifts that are impacting every layer of society also alter how we do business. Many seasoned professionals are aging out of the industry, leaving voids we desperately need to fill to meet the ambitious goals of the housing bills.
Callahan Wins Too
It is essential to build the bench of the next-generation of Massachusetts general contractors to ensure our industry is future-proof. Recently, groups like the SouthCoast Workforce Housing Coalition have been created to address the need to create good-paying jobs and increase housing stock in order to future-proof our workforce, a goal that our company shares with state leaders.
As Callahan continues to grow both geographically and in the scope of the projects we manage, partnering with companies like Velney will enable us to provide more resources to our customers while also ensuring that smaller and historically disadvantaged business have access to the tools necessary to grow professionally.
We see Velney as an ideal partner for pursuing joint venture opportunities on new housing projects and for helping a next-generation company invest in the tools needed to grow and succeed.
Firms like Velney often find it difficult to afford the resources necessary to grow smart and manage risk appropriately. We have found that many startup construction organizations fail due to financial strains on their business, or because they have taken on work without the proper resources to manage it.
Callahan will be helping Velney train its own employees both in practical jobsite skills along with utilizing technology tools such as Building Information Modeling (BIM), Procore and estimating software, along with internal resources like legal, accounting, risk management and quality control.
We believe this partnership will let Velney build a track record for sustainable and manageable growth, with the goal of eventually competing on their own with other larger GCs.
Higher Construction Costs Hurt WMBEs
New building codes, as well as changes to federal policy such as the 2023 overhaul of the Davis-Bacon Act, sharply increased construction costs. Massachusetts’ new Home Energy Rating System (HERS) program also increased costs to build while passing future savings from reduced energy expenses on to the consumer down the road.
While these programs ultimately aim to protect workers and consumers, they also make it increasingly difficult for young companies to enter into an already expensive industry. Simply getting a shovel in the ground doesn’t mean a business is instantly profitable, as the road is long and challenging from signing a contract to being financially stable – and we believe companies like Velney can get there with some strategic support.
For Callahan, this relationship helps us become more diverse, grow our MBE/WBE partner base, provides our customers with more options and gives us the pride of helping others. We also see it as a critical way to help address the state’s housing shortfall by bringing on resources to help us build faster and smarter, all the while training next-generation workers who will someday build these projects on their own long after the current crop of leaders age out of the business. Massachusetts has made great strides to address the housing gap. We at Callahan are excited that this partnership with Velney will not only support ambitious investment in this state and the Northeast but also in a company that is ready to rise to the next level.
This story originally appeared in Banker & Tradesman
Event attended by Lt. Governor Driscoll, Salem Mayor Dominick Pangallo, and leaders of Beacon Communities
BRIDGEWATER, MA – October 3, 2024 – Callahan Construction Managers (Callahan),a full-service construction management company headquartered in Bridgewater, Mass., announced today that it has broken ground on Leefort Terrace in Salem, a new 124-unit affordable development on Salem Neck. Callahan is working in partnership with Beacon Communities, which is overseeing the redevelopment of this important residential community.
Numerous political dignitaries and local executives attended the ceremonial kick-off, including Lieutenant Governor Kim Driscoll; Massachusetts Secretary of Housing and Livable Communities Ed Augustus; Salem Mayor Dominick Pangallo; Salem Housing Authority Executive Director Cathy Hoog; Executive Director of Massachusetts Housing Partnership Clark Ziegler; Dara Kovel, CEO of Beacon Communities; and Patrick Callahan, president of Callahan Construction.
The redevelopment will address several challenges with the current residences. In addition to simply being outdated, the garden-style apartment community is located in a coastal floodplain. When complete, the new Leefort Terrace will include a three-story and a four-story structure with a mix of one-, two-, and three-bedroom apartments, which will be all-electric and Passive House certified, and built to exceed the expected 2070 floodplain levels. All apartments will be affordable to households with incomes at or below 30% and 60% Area Median Income for 99 years.
“As an administration, we are dedicated to addressing two of our most pressing challenges: housing and climate change,” said Lieutenant Governor Kim Driscoll. “That’s why we’ve passed the Affordable Homes Act into law because it’ll help create thousands of new units of housing that we need and it invests $275 million exclusively to sustainable and green housing initiatives. Our administration has made strides in ensuring that people who say yes to building housing have the supports they need to make it happen. Last fall, we expanded the Low-Income Housing Tax Credits (LIHTC) program which helped make projects like this one come to life. As the former mayor of Salem, I know how impactful developments like Leefort Terrace are for the community and I’m excited to celebrate this groundbreaking.”
Amenities will include a fitness center, a community room, wellness office, computer stations, a private residential courtyard featuring a grilling area, a bocce court and victory gardens. Included in the site plan are 100 parking spots as well as 86 spaces for bicycle parking, 2 EV charging stations, and 25 EV-capable parking spaces. “We are grateful to our partners at the local, state and federal level, as well as to the Salem Housing Authority, for their collaboration and commitment to expanding housing opportunities that will reduce our carbon footprint and be affordable for generations to come,” said Dara Kovel, CEO of Beacon Communities. “We appreciate the patience and support of the residents and look forward to welcoming them into their new homes in early 2026.”
Sustainable housing for low-income older adults and disabled households to be re-imagined from the ground up
BRIDGEWATER, MA – July 23, 2024 – Callahan Construction Managers (Callahan),a full-service construction management company headquartered in Bridgewater, Mass., announced today that it was selected to manage the ground-up reconstruction of the Leefort Terrace Affordable Housing complex in Salem, MA. When complete, Leefort will provide both existing and future residents with access to 124 eco-friendly, affordable apartments that will also be Passive House certified and 100% electric and solar powered. This is Callahan’s first project with Beacon Communities, who is overseeing the redevelopment of this important community.
Leefort Terrace has been a haven of refuge for elderly and disabled households following its completion in 1958 but required significant modernization after receiving virtually no updates since its original construction. Thus, Beacon and the Salem Housing Authority chose Callahan to oversee the project due to the company’s deep experience in the affordable housing space, along with its background in managing complex, multi-phase renovations in dense, urban locations. In addition to being outdated, all residences within the existing Leefort facility are on the ground floor in garden-style settings built on a coastal floodplain, and state and Federal regulations would not allow for renovation in the existing configuration.
The project consists of the demolition of all 8 existing buildings and the construction of a new, three and four-story Passive House structure that will house 124 affordable rental units. Amenities will include a fitness center, a community room, wellness office, computer stations, a Tenants’ Organization office, and property management suite, along with laundry rooms on each floor. Included in the site plan are 100 parking spots (83 basement garage spots and 17 surface-level parking spots), as well as 86 spaces for bicycle parking, 2 EV charging stations and 25 EV-capable parking spaces. Beacon has relocated the Leefort Terrace residents offsite to allow for construction; the residents have the right to return to the new building when the new building is complete.
In addition to the impact Leefort Terrace will have on its residents, the project will also change the community of Salem. As such, the project team has taken into account extensive feedback from the community to ensure the final structure meets the needs of residents and neighbors alike. A smaller footprint, lower building height, and increased emphasis on open space were all considerations that impacted the final design, along with environmental concerns. With 30 Passive House employees on staff, Callahan also possessed the sustainable expertise necessary to create a space that ensured green-friendly features weren’t left on the cutting room floor.
“We understood from the moment we saw the first renderings of Leefort Terrace how invaluable this community is for the residents of Leefort Terrace and of Salem,” said Steve Callahan, Jr., vice president – business development, Callahan. “As such, Callahan is committed to not only building a forward-looking affordable housing community, but one that is truly sustainable as well, thus combining two areas of significant expertise for Callahan. In addition, we’re excited to work with our partner Beacon Communities on a project that will transform the local housing landscape for the better.”
Callahan is committed to building strong, long-lasting client relationships, and to consistently delivering solutions that exceed expectations. Contact us today about starting your next project.