Broadening services, territory. (Profile of the Week: HRH Construction LLC).

One of the "old guard" of New York City's construction firms, HRH Construction LLC has always prospered by staying ahead of industry trends. It has traditionally been a versatile operation, concentrating on residential, health and hospitals and interiors, yet also seizing opportunities in other areas.

Now, seeking growth in new markets, HRH is diversifying geographically and by product type. Under its leadership team of chairman and CEO Gregory Cuneo and president and COO Brad C. Singer, HRH is pursuing business opportunities in the outer boroughs, Westchester County and northern New Jersey, and in pharmaceutical and other non-traditional types of building.

"In New York, our business is stable but there are fewer opportunities for the growth rates that we would like to obtain," Cuneo explains. Rental multifamily construction is slowing in Manhattan, although the condo market is strong because of low interest rates and high demand among renters who see the value of owning.

"We've wanted, all along, to grow into new markets, to the point where we have about 40% of our business outside of Manhattan. We hope to be at that level within five years, giving us a unique opportunity to strengthen our company despite the current economic conditions. The boroughs, northern New Jersey and Long Island are especially promising markets at this time. We would also like to solidify our position as the most successful builder in Westchester County, where we are building major projects for LCOR and Louis Cappelli."

HRH Construction has operated for 78 years, originally as the construction arm of Starrett Brothers and Eken, now Starrett Corp., which built the Empire State building (HRH's Manhattan headquarters has a splendid view of that legacy). It became an independent entity in the 1970's. The company's resume includes the Jacob Javits Convention Center, AT&T's world headquarters, the Trump International Hotel and Tower, the Madison Square Garden renovation, and Building A at Donald Trump's Riverside development.

HRH's contribution of more than 5,000 apartments to the development of Roosevelt Island remains the company's residential masterpiece. HRH's project mix is about 50% multifamily and 25% health and hospital, and its remaining projects consist of retail, educational, and mixed-use projects. Recent completions include plan development, cost estimating and value engineering on AOL Time Warner Center, and construction of the mammoth Gateway Center in Brooklyn.

The leadership team of Cuneo and Singer has adopted a page from the play book of former co-chairman Frank Ross, Sr. That means balancing the firm's workload, and consistently seeking new opportunities in diverse market sectors.

"We're building on what Frank left us," comments senior vice president Louis Esposito. "He was a great teacher, and he's much missed."

Esposito, who is chief purchaser, remarks that what sets HRH apart from its competition is its ability to consistently bring its projects in under the developer's budget and on schedule.

"When a developer sends us a roll of drawings for a prospective project, (senior vice president and chief estimator) James Muscianesi budgets everything out to create a complete conceptual estimate. Part of that process involves working with me to find out my latest purchasing numbers," he says.

"Right now, we're working on purchasing for two big projects in Manhattan. One is a 393-unit apartment building at 900 Eighth Ave. (at 54th Street) for the Moinian Group of Manhattan. At 1400 Fifth Ave., at 116th Street, we're building 129 apartments for Full Spectrum, with eight townhouses."

James Muscianesi points out that 1400 Fifth Ave. is built as a "green" building that includes innovations such as a geothermal system, with a closed-loop that sends water down 1,000 feet below the Earth's surface to be heated by the ground temperature.

Muscianesi's specialty is conceptual estimates, and developers depend on his value engineering to find ways to improve their projects.

"For example," he notes, "we're in negotiations for a project in White Plains where we recommended extending the footprints of the cellar and subcellar, where the parking is going to be. That eliminated the need for a third below-grade level and saved the project between $3 and $4 million, or about 5% of the total cost."

In his 30-year tenure at HRH, Muscianesi says he has never been responsible for a project more complicated than the AOL Time Warner building--and there, too, he found substantial savings.

"In that development," he explains, "we had to marry a trapezoidal residential tower to a rectangular office space, with a theatre in between, retail below, and parking below that--all while maintaining the 'view corridor' along 59th Street. An enormous challenge. We were able to considerably improve the design--saving $2 million in the process--simply by raising the foundation two feet."

Another way HRH hopes to save its clients money is via its new Integrated Technology Services (HITS) division, which will evaluate telecom service and equipment options, negotiate with service providers on a building owner's behalf, and work with design professionals to prepare and supervise installation.

"The need for this new division arose out of the telecommunications meltdown," Cuneo remarks. "A few years ago, developers were flooded with bids to wire their buildings with the latest telecom infrastructure for free. Now, residential telecommunications systems are nearly as complicated as those in office buildings, but the industry has consolidated. Developers are unequipped to evaluate the best systems for their properties and suddenly there is no one available to help them. We have built an team of telecom experts to solve that problem."

In keeping with its plans to enter new fields, and to expand its employees' skill base, HRH is setting up a learning center at its administrative headquarters in White Plains.

"We'll bring in various experts, to get our people up to speed on the latest skills and technologies," Cuneo explains. "This is part of our strategy of constantly broadening our knowledge and abilities."

"If we have a single overarching objective at HRH," Cuneo concludes, "it's to ensure that our people are the best qualified in the business. We feel we've achieved that level of expertise, but we're still not satisfied. Staying at the top, in our industry, is a never-ending process."