Nasdaq Rises to Worldwide Powerhouse
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nb08p01.qxp 2/22/2008 8:19 PM Page 1 TOPSTORIES MEETING PLANNERS Investors buy up GUIDE real estate loans Find venues for area that banks shun business events PAGE 2 ® PAGE 23 Outdoor ad firms grow revenues in 2008 as other VOL. XXIV, NO. 8 WWW.CRAINSNEWYORK.COM FEBRUARY 25-MARCH 2, 2008 PRICE: $3.00 media falter PAGE 3 Art lovers rush Nasdaq rises to the Bowery’s New Museum to worldwide NEW YORK, NEW YORK, P. 6 Go west, advise advocates for powerhouse Javits expansion THE INSIDER, PAGE 14 Buys build global brand, capabilities; BUSINESS LIVES overseeing $5 billion BOWLING GOES CHIC Refurbished lanes with OMX a big reach trendy lounges and upscale fare put new BY AARON ELSTEIN spin on an old game PAGE 43 nasdaq stock market inc.is about to undergo what could be called Extreme Makeover: Wall Street Edition. On Wednesday, the nation’s lindström bekka second-largest stock exchange is slated to complete its $5 billion When all is said and done,Nas- merger with Stockholm-based daq will bear little resemblance to GOLD MINE: The Related Companies’ OMX Group, a move that will the current exchange.It will morph Kenneth Himmel boost Nasdaq overnight into the from a marketplace primarily for says the center has top ranks of exchanges operating technology stocks to one that far exceeded across the globe. That’s just the trades the whole gamut of equi- expectations. start. By midspring, Nasdaq will ties—plus options and futures— AT DEADLINE wrap up its acquisitions of ex- while becoming a leading provider roger hagadone changes in Philadelphia and of computer systems powering ex- NEW YORK WATER TAXI’S Boston, spending $700 million to changes everywhere from China to SIX-MONTH-OLD COMMUTER LUXURY RETAIL broaden its product lineup. See NASDAQ on Page 8 ferry service from Haverstraw and Yonkers to Manhattan, which needs more passengers, will likely get a boost in the next couple of months when Sales soar at mall, the hefty fare is reduced and Wall St. cutbacks an ad campaign begins.The Hudson River ferry, which receives government subsidies, buckingU.S.trend crimp tech sector now costs $450 a month from Haverstraw, in Rockland Time Warner average sales of $1,500 a square County, and $400 a month foot last year, an astounding 25% Firms look for new dustry are preparing for tough from Yonkers, in Westchester consumption jump from 2006. Traffic increased times. Some are trying to diversify County. About 35 passengers by 10%, to more than 16 million clients elsewhere, into new markets, while others are take the ferry during peak mecca packs in visitors, and total sales shot up defer hiring hunting for business overseas. hours; the vessel has a capacity tourists and locals 15%, topping $300 million. That Even those claiming that business of 145. makes The Related Companies is good are taking precautions. property one of the country’s top- BY AMANDA FUNG “We are in a lot of turmoil right STRUCTAL-HEAVY STEEL BY ELISABETH BUTLER CORDOVA performing shopping centers. now,” says Stephen Davis, chair- CONSTRUCTION, A DIVISION OF “Overall, we’re seeing sales de- information builders, one of man of law firm Heller Ehrman’s Quebec-based Canam Group as the sinking economy lays clining, but you’re not going to see New York’s largest privately held New York business practice, which Inc., has won a contract to waste to malls nationwide, shop- that in a center like this,” says a technology firms, lost a $500,000 represents area tech firms. “If this provide all the structural steel pers are flocking to The Shops at spokeswoman for the Internation- sale last month when a large bank continues, there will be a clear ad- components for Red Bulls Columbus Circle, spending freely al Council of Shopping Centers. halted a software integration project. verse impact on our local financial Park, the future home of the in tony stores like Tourneau and at “This is a very unique property.” As Wall Street giants report bil- IT companies.” See AT DEADLINE on Page 2 upscale restaurants like Per Se. Critics who once predicted that lion-dollar write-downs and cut Forrester Research recently low- The West Side center delivered See TIME WARNER on Page 8 staff, local tech providers to the in- See TECH SKIDS on Page 9 08 CRAIN’s ANNUAL TRIBUTE 5 COMING TO NEW YORK’s RISING STARS NEXT SEE VIDEO INTERVIEWS WITH 2008’s ELECTRONIC EDITION WEEK WINNERS @ www.crainsnewyork.com NEWSPAPER 71486 01068 0 CNYB 02-25-08 A 2 2/22/2008 8:33 PM Page 1 AT DEADLINE Continued from Page 1 from four. Designers call Gilt Bankers’ trash New York Red Bulls soccer when they want to get rid of team.The project is worth excess inventory, runway between $28 million and $30 samples, overstock and vendor million.The stadium, located in returns. Access to Gilt.com is Harrison, N.J., is the fourth free. is investors’ treasure such New York area project in which Structal will be involved. SEVENTEEN VERIZON WIRELESS WORKERS ARE TAKING A APOLLO’S Last year, it won a $100 million BRADFORD Bargain hunters buy discounted contract to provide the steel general business course taught WILDAUER: beams for the New by a Monroe College professor “Banks’ business Meadowlands Stadium, future on Tuesday evenings at the is to write loans debt; banks anxious to sell home of the New York Giants company’s store at East 59th and move on.” and the New York Jets, in East Street and Third Avenue. BY THERESA AGOVINO Rutherford, N.J. Structal has Verizon Wireless is providing also provided steel for the the class as part of its tuition a year and a half ago, the primary focus of Apollo Real stadiums being built in New assistance program, which offers York City for the Yankees and full-time employees up to Estate Advisors’ debt investment fund was to issue loans. the Mets. $8,000 a year in education aid. These days, the fund is just as likely to buy a real The workers will receive college estate loan as to make one. MANHATTAN-BASED GILT credit if they successfully The real estate fund-management firm is one of GROUPE IS SCRAMBLING TO complete the course. keep up with surging demand several investors cherry-picking discounted debt for its online sample sales. Since FOURTEEN HOUSING from banks anxious to unload unwanted real estate November, when Gilt.com was DEVELOPERS APPLIED FOR loans sitting on their books in the wake of the launched, more than 75,000 tax-exempt financing under this people have signed up to receive year’s 80/20 Program, so called credit crisis. notices of the Web site’s because 80% of the units are These bargain hunters are scooping up debt on limited-time sales of designer rented at market rates and the fundamentally strong properties—including apparel and accessories. Because rest are leased to low-income Manhattan office towers—at discounts of anywhere some lines have sold out in an households. However, only two afternoon, Gilt Groupe or three projects are likely to get from 3% to 30%. For example, a 15% discount on a executives have started ordering funded because of a financing $50 million loan would allow an investor to acquire more inventory so that members crunch, according to the New it for $42.5 million. Such deals are expected to bring who log on after the noon start York State Housing Finance returns of anywhere from 15% to 25%. time won’t miss out on the Agency, which issues the debt. event.They also are increasing A decision on which companies “Banks are motivated sellers,” says Bradford the frequency of their sales to will receive funding is expected Wildauer, a partner who runs the debt business at seven collections a week, up in a few weeks. Apollo. “Banks’ business is to write loans and move on.They can’t do new business until they CORRECTIONS daniel byrne daniel sell the old.” CoStar’s list of top Manhattan office leases in 2007 should have shown that Lehman Brothers subleased 425,374 sq. ft. at 1271 Sixth Ave.; the square footage was misstated. The following Banks have on their books tens of billions of deals should have been included. No. 16: AOL leased 152,138 sq. ft. at 770 Broadway; The dollars in real estate loans that they had Staubach Co. was the tenant rep, and Vornado Office Management Inc. represented Vornado Realty Trust. No. 24: Touro College renewed its lease for 110,000 sq. ft. at 27 W. 23rd St.; GVA intended to sell after repackaging the loans as Williams represented both the tenant and landlord Abner Properties. No. 27: Google leased bonds known as commercial mortgage-backed 108,632 sq. ft. at 75 Ninth Ave.; GVA Williams was the tenant rep, and Newmark Knight Frank represented Jamestown/SEB Immobilien-Investment GMBH. No. 41: American Lawyer Media securities. But last summer, after problems leased 91,818 sq. ft. at 120 Broadway; GVA Williams represented the tenant, and Silverstein surfaced in the subprime residential mortgage Properties Inc. represented itself and the California State Teachers’ Retirement System. market, investors began shunning all types of real estate securities, even bonds backed by commercial properties. THIS WEEK IN CRAIN’S Last year, $223 billion worth of CMBS were sold in the United States, according to research ALAIR TOWNSEND -------------------13 45 See INVESTORS on Page 8 THE INSIDER------------------------------------14 WEEK IN REVIEW -----------------------16 SMALL BUSINESS ------------------- 18 NEIGHBORHOOD Regional airlines buffeted JOURNAL------------------------------------------20 mation Resources Inc.“There aren’t that some of its summer flight can- REAL ESTATE DEALS--------------21 Surge in hiring, a lot of extra employees in that cat- cellations were partly caused by the MEETING PLANNERS spike in retirements egory floating around.” dearth of pilots.