Expanding in a Down Economy

Does a soft market call for cutting expenses and scaling back? Or using equity to expand and seek a larger market share? The 90-year-old, family-owned Allegrone Companies bucked conventional wisdom and chose the latter approach, expanding its employee base by 20 percent and seeking more projects. To handle the growth, the firm recently moved into a foreclosed office building in Lenox, Massachusetts, renovating the space to reaffirm its focus on sustainable design and construction.

As one of the largest construction managers and general contractors in the New England area, the company consistently researches and seeks new design, building, and development opportunities. And, staying on the forefront of the ever-changing construction industry, Allegrone focuses strongly on innovative and eco-friendly construction. As a growing company, it is committed to building and operating in an environmentally conscious manner using green products, systems, and methodologies, and as a supporting member of the USGBC, it embraces the new trend of green building by adhering to LEED practices.

To reflect its focus on sustainability, the firm went the renovation route for its new corporate headquarters rather than doing work on an entirely new building. Allegrone’s new offices provide the firm with a critical long-term financing solution for expanding its capacity while growing responsibly and sustainably.

With help from the state’s Economic Development Incentive Program, MassDevelopment issued Allegrone a multimillion-dollar Recovery Zone Facility Bond to fund redevelopment of its abandoned office site into a 35,000-square-foot green office park. Massachusetts’ Executive Office of Housing and Economic Development and the Executive Office for Administration and Finance allocate the bonds to eligible applicants such as Allegrone, and MassDevelopment issues Recovery Zone Facilities Bonds, which private investors purchase. MassDevelopment is the state’s finance and development authority, and it works with businesses, financial institutions, and communities to stimulate economic growth across the Commonwealth.

As one of only 16 economic development initiatives in the state, the move succeeded largely thanks to carefully considered financing. “The Commonwealth has put an emphasis on sustainable growth—from an employment perspective as well as an energy-conservation and -efficiency perspective,” vice president Lou Allegrone says. “In this soft economy, we chose to use private equity to stimulate our local economy and the growth of our company.”

Together with Clark & Green + Architecture|Design of Great Barrington, Massachusetts, Allegrone is designing and constructing its new office park as a two-story, class-A green office complex providing employees and tenants with a bright and attractive work environment infused with abundant natural light and optimally clean air. The finished project will feature state-of-the-art technology, including geothermal HVAC systems and photovoltaic panels placed over a green roof to supplement the power supply. Natural lighting will be increased by a dramatic two-story glass atrium and plentiful curtain-wall glazing. “We want this to be an example of sustainable development that contributes to the overall smart-growth plan of the municipality—as well as provide a better-quality-of-life work environment for our employees,” Allegrone says. The company will be seeking LEED Platinum certification upon completion.

While designing and constructing its new corporate headquarters in a down economy, Allegrone also has focused on expanding its business and employee base. This has given the company the in-house capacity and ability to take on more projects and opportunities. In short, instead of scaling back, Allegrone has invested in its own future, gearing itself up to take on more work and larger projects.

Allegrone continues to build on a legacy that now spans four generations. It provides a wide range of services and expertise thanks to its multiple—but distinct—divisions within the organization. The four divisions are Allegrone Construction Co., which provides construction management, general contracting, design-build, and preconstruction-planning services; Allegrone Home Builders, the company’s residential division, which assists clients on a range of projects from small renovations and restorations to large, complex family estates; Allegrone Masonry, which completes projects ranging from complex historical restorations and preservations to new buildings; and Allegrone Real Estate, which provides expertise in commercial and residential development, project financing, and full brokerage services.

The firm has extensive experience in both fast-track construction and complex projects, and it works in a variety of markets, including the academic, historical, corporate, healthcare, financial, institutional, commercial, and restoration sectors.

This is an exciting time for Allegrone as 2011 marks its 90th year in business. With the company’s strong business framework, consisting of hands-on experience, dedication, integrity, and pride for its work, Allegrone looks forward to its own continued growth and development. ABQ