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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

New residential development adds 250 units and mixed-use space to downtown Manchester

BRIDGEWATER, MA – November 6, 2024 –  Callahan Construction Managers (Callahan),a full-service construction management company headquartered in Bridgewater, Mass., announced today that it has cut the ribbon on 75 Canal, a 250-unit residential development with retail space and underground parking located in downtown Manchester, NH. The development was built in partnership with Jones Street Investment Partners, a private equity real estate firm focused on multifamily assets located throughout the Northeast and Mid-Atlantic regions of the U.S. that manages a portfolio of over 6,700 units.

Callahan, a trusted builder of residential communities and mixed-use developments, was chosen for its robust pre-construction services that ensured Jones Street could meet its desired occupancy goals while also building within an active, downtown environment. Ensuring that neighboring businesses and residences were not impacted by construction was essential to the project’s success, and Callahan maintained daily communication with various municipal stakeholders in Manchester, including the Building, Public Works, Fire, and Water departments. Callahan also facilitated regular site walks and meetings both on-site and in city offices to provide maximum transparency to all members of the project team.

75 Canal ushers in a new era of high-end living in Manchester, with an abundance of features that reflect an increased emphasis on supporting work-from-home professionals along with amenities that residents have come to expect in an apartment community. Callahan and Jones Street worked to integrate new levels of sophistication with features that include two fireside lounge areas, a game room, and work pods. In addition, Callahan oversaw the demolition of several existing buildings on the 2.3 acre site before beginning construction.

“We are glad to gather with our friends, colleagues and collaborators to celebrate the opening of 75 Canal, a marquee project for our organization that brings much needed housing to a severely supply constrained market,” said Matt Frazier, founder and CEO of Jones Street. “The successful completion of 75 Canal not only advances our investment strategy, but it also demonstrates our development capabilities, which are a core part of our growth plans. Callahan Construction was a great partner throughout this process and was instrumental in bringing our vision to life. We look forward to delivering an exceptional living experience to our residents and operating as a responsible partner to the Manchester community.”  

Callahan has previously overseen residential communities and mixed-use projects including The Wright in Waltham; J. Malden Center in Malden; 500 Ocean Avenue in Revere; and The Abby in Quincy, among many others.

“As Callahan continues to expand its operations into new markets like southern New Hampshire and New York, we are grateful for partners like Jones Street and the beautiful communities they bring to market,” said Steve Callahan, Jr., vice president – business development, Callahan. “75 Canal is certain to attract a new generation of residents to Manchester along with creating retail opportunities that encourage economic investment in the city.”

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.”

Summer slammer completed under tight schedule during student break

BRIDGEWATER, MA – September 10, 2024 –  Callahan Construction Managers (Callahan), a full-service construction management company headquartered in Bridgewater, Mass., announced today that it has completed a fast-track renovation ahead of schedule for Bentley University’s Forest Hall dormitory, a residential building that houses sophomores, juniors, and seniors in suite-style units.

Bentley, a private university located in Waltham, selected Callahan to oversee the renovation of 81 bathrooms within Forest Hall due to its extensive experience in both residential and higher education construction. As a company that understands the challenges of expediting construction schedules when a residential building is temporarily unoccupied, Callahan was able to leverage its cutting-edge pre-construction services team to design a project plan that met Bentley’s aggressive goals. 

“It was essential that the project team understood the compressed schedule and need to turn the building over as soon as possible,” said Jon Nattinville, Director – Planning and Construction, Bentley University. “We were pleased with the work completed by Callahan Construction, which provided critical updates to Forest Hall, a popular student residence facility.”

The Callahan team worked in tight confines that only allowed for 1 to 2 workers to be in the impacted bathroom area at a time. This constraint, combined with a 10-week turnaround for delivery of the finished spaces, demanded that the team not deviate from completion date goals. Aggressive schedule tracking and constant progress monitoring by both field and project management staff were essential for a successful turnover ahead of the projected completion date, along with frequent communication with the Bentley facilities team.

“We understand the pressures that higher education customers are under to expedite essential projects during the summer break,” said Steve Callahan, Jr., vice president – business development, Callahan. “With a unique combination of experience across affordable housing, higher education, and interior fit-outs, we were uniquely positioned to tackle this dormitory renovation and ensure students returned to a fully-functional building with modern bathroom facilities.”

Wessling Architects provided design services on this renovation project.

                                                                 

Strategic Alliance will support Velney’s endeavors to expand its contracting business as well as grow Callahan’s diversity & inclusion program

(BRIDGEWATER, MA – 8/21/24) Callahan Construction Managers (Callahan), a full-service construction management company headquartered in Bridgewater, Mass., announced today that it has formed a strategic alliance with Velney Construction, a 100 percent veteran, service-disabled veteran- and minority-owned company located in Somerville, MA.

The partnership is part of Callahan’s ongoing diversity and inclusion initiative to equip local minority-, women-, and Section 3-owned trade partners with the tools and resources necessary to compete for contracts in affordable housing and other key construction sectors.

“Persistent challenges for small businesses in the construction industry are the financial restrictions which slow a company’s ability to obtain the resources essential for growth,” said Patrick Callahan, President of Callahan. “Through this initiative, we aim not only to share our management expertise with Velney but also to help Velney expand and grow its financial resources. The partnership will also help Callahan expand and strengthen our network of M/W/D/VBE companies, ultimately creating more opportunities for all involved.”

Josue Velney, Owner and CEO of Velney, stated, “We are thrilled to collaborate with Callahan and leverage its vast expertise in housing and other sectors of construction. This partnership will allow us to better manage different aspects of a project with the help of Callahan’s oversight and expertise. We are excited to be a part of their project teams that will provide valuable insight into how to best build and manage a project.”

About Velney Construction

Velney Construction, a VBE, SDVOSB & MBE-certified construction company based in Somerville, MA, manages residential and Commercial projects across Greater Boston. Josue Velney holds a degree in Building Construction Management from Wentworth Institute of Technology, where he graduated Cum Laude Honors and Tau Alpha Pi National Honor Society. Josue was selected Boston Business Journal’s 40 under 40 in 2022 and Wentworth Institute of Technology’s Alumni Entrepreneurship Award in 2023. For more information, visit: https://www.velneyconstruction.com/.

About Callahan Construction Managers

Callahan Construction Managers is a full-service construction management company based in Bridgewater, Mass., with a regional office in White Plains, NY. Callahan has served the New England and Northeast regions for over 70 years. As one of the region’s largest open-shop construction firms, Callahan provides a wide range of preconstruction and construction management services to local, regional, and national clients. Callahan’s markets include multi- family residential, senior housing, affordable housing, hospitality, life sciences, corporate office, educational, retail, and tenant fit-up. Callahan was voted a 2023 “Top Place to Work” by the Boston Globe and 2024 “Best Place to Work” by the Boston Business Journal. Visit: www.callahan-inc.com for more information.

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Mixed-use project will bring grocer-anchored shopping center into the modern age

WHITE PLAINS, NY – August 1, 2024 –  Callahan Construction Managers (Callahan),a full-service construction management company headquartered in Bridgewater, Mass., announced today that its New York office was selected to oversee a comprehensive renovation of the New City Shopping Center in New City, NY. When complete, the planned enhancements will provide shoppers with a 21^st-century shopping experience.

Located in the heart of New City, the shopping center has been serving the Clarkstown community since 1989. It is home to a diverse range of stores, restaurants, and service providers, dedicated to meeting the needs of local residents and visitors alike. The grocery-anchored retail asset currently contains a complementary tenant mix with strong demographics, traffic counts, and access. The center looks to become the premier retail destination in the area when the project is complete. Construction is expected to be completed in phases over the next 6 months to minimize disruptions to shoppers and businesses. The center will stay open throughout the renovation, and all businesses will continue to operate at their regular hours. The planned renovations will address all facets of redeveloping the plaza, from structural upgrades to aesthetic improvements, including new landscaping, updated lighting, and modernized storefronts. The anchor, Inserra Supermarket’s New City Shoprite, will also undergo interior renovations, all of which aim to create a more welcoming and accessible environment for visitors.  

“As our New York office continues to grow, we are proud to have the opportunity to oversee the significant improvements coming to the New City Shopping Center,” said David Morrow, vice president – New York, Callahan. “Callahan’s deep experience in both mixed-use and retail environments suit us well for this project, and our team in White Plains will work closely with the property development team to create a shopping experience like none other for Rockland County residents.”

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.”

Multi-tenant project yields much-needed research space in Lexington

Callahan Construction Managers (Callahan),a full-service construction management company headquartered in Bridgewater, Mass., announced today that it has completed a multi-phase renovation project for Revolution Labs in Lexington. The project features a 180,000 square foot core and shell research building that is occupied by anchor tenants Orum Therapeutics and Alchemab Therapeutics.

The facility was designed from the ground up to support both cutting-edge research and the lifestyle needs of today’s life sciences pioneers. Orum Therapeutics is a private, clinical-stage biotechnology company that is pioneering the development degrader-antibody conjugates (DCAs) for cancer treatment, while Alchemab Therapeutics is developing solutions that utilize the immune system to create novel antibody therapies for challenging diseases.

With a proven track record for overseeing complex, technical, and multi-phase projects, Callahan’s familiarity with working in occupied spaces as well as the unique challenges of the life sciences environment proved impactful while working for Revolution Labs. The team was chosen to first oversee the core and shell of the facility, and then later retained to manage the fit-out of the interior office and lab spaces. The occupied nature of the building during the second phase posed challenges that included lining the pipes of the structure’s sanitary system while the building was in use, requiring restricted water use and proactive planning with laboratory tenants.

In addition, the ongoing supply chain concerns made procurement of advanced laboratory components challenging, including specialty HVAC and electrical equipment. Callahan utilized the pre-construction phase to build a schedule that met critical deadlines while also taking into account what equipment needed to be ordered first to ensure occupancy goals were not impacted by unpredictable delivery dates. Fortunately, strong relationships with suppliers and subcontractors ensured Revolution Labs maintained its preferred timeline.

With the health and safety of occupants a priority, Revolution Labs is on track to achieve WELL Certification. For Callahan, knowing it has helped build a facility that promotes both cutting-edge research and the health of its occupants makes the successful completion a source of pride for all involved.

“We are thrilled to see this new research facility come to life to support the groundbreaking efforts of the researchers that work here,” said Steve Callahan, Jr., vice president – business development, Callahan. “This project showcases the benefit of robust pre-construction planning, along with having a team that understands the specialized nature of lab construction. We wish Revolution Labs well as they utilize this space to its maximum potential.”

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About Callahan Construction Managers
Callahan Construction Managers is a full-service construction management company based in Bridgewater, Mass., with a regional office in White Plains, NY.  Callahan has served the New England and Northeast regions for over 70 years. As one of the region’s largest open shop construction firms, Callahan provides a wide range of preconstruction and construction management services to local, regional, and national clients. Callahan’s markets include multi-family residential, senior housing, affordable housing, hospitality, life sciences, corporate office, educational, retail and tenant fit up. Callahan was voted a 2022 “Top Place to Work” by the Boston Globe and 2021 “Best Place to Work” by the Boston Business Journal. Visit www.callahan-inc.com for more information.

Media Contact
Jeff Lavery
Pedigree Public Relations
[email protected]
508.361.7539

New City Shopping Center, located at 44 North Main Street, is excited to announce that it will undergo a comprehensive renovation starting May 9, 2024. The planned enhancements are designed to provide a 21^st-century shopping experience.

Located in the heart of New City, New York, New City Shopping Center has been serving the Clarkstown community since 1989. It is home to a diverse range of stores, restaurants, and service providers, dedicated to meeting the needs of local residents and visitors alike.

The renovations are being overseen by Callahan Construction, a full-service construction management company, and will address all facets of the center, from structural upgrades to aesthetic improvements, including new landscaping, updated lighting, and modernized storefronts. The anchor, Inserra Supermarket’s New City Shoprite, will also undergo renovations, all of which aim to create a more welcoming and accessible environment for all visitors.

The project is expected to be completed in phases over the next 6 months to minimize disruptions to shoppers and businesses. The center will remain open during the renovation, with all businesses operating at normal hours.

The life sciences market is rapidly changing – that much we know. While no one can predict the future, it is possible to build a cutting-edge laboratory and research facility that will adapt to the changing needs of scientists and researchers. That’s what is unfolding at 440 Bedford, a completely new approach to lab space in the coveted Lexington submarket.

440 Bedford Street is a new 6-story, 335,000 GSF Class AA speculative life science lab and office building being built by Callahan Construction. When finished, the building will include incubator lab space, graduator lab space, lab-ready spaces, a café, fitness center and other amenities. The building will also feature a retail and restaurant space on the first level and several outdoor amenities, along with a 6-level parking garage with parking for 575 vehicles. Put simply, this isn’t just a place to come work; it’s a destination for collaboration and an extension of one’s lifestyle.

Callahan’s pre-construction expertise was on full display during the early phases of the project, as the construction team discovered soil deficiencies that had the potential to cause substantial delays to the project schedule and significant costs to the budget if not resolved as early as possible. The preconstruction team as well as Callahan’s Site Division were able to find solutions to the problem that kept the project on schedule, saved money for the client, and strengthened trust between all parties on the project.

440 Bedford will feature numerous high-end touches, including modern interiors designed to inspire, flooded with natural light and plenty of amenities to keep scientists balanced. And with its location in the sought-after Lexington and Hartwell Avenue submarket, 440 Bedford offers ease of access to both the building and nature, not to mention proximity to other innovative companies and industries along with mass transit.

“Callahan is excited to once again leverage its experience with complex projects including laboratories and research facilities, along with our robust portfolio of pre-construction services, to build 440 Bedford,” said Steve Callahan Jr., Vice President – Business Development, Callahan Construction. “The team behind this project in Lexington knows how important it is to bring this cutting-edge research space to market, and we look forward to seeing it filled with the people and projects changing our world for the better.”

For more information about Callahan’s pre-construction services, please visit https://callahan-inc.com/our-services/enhanced-preconstruction-services/.