CRAINSNEW YORK BUSINESS
NEW YORK BUSINESS Wheels fall off new bus terminal plans P. 12 | Backlash against affordable housing grows P. 13 | GreenGreen-taxi-taxi breakdown P. 20 CRAINS
NEW YORK BUSINESS® SEPTEMBER 26 - OCTOBER 2, 2016 | PRICE $3.00
ART OPENS THE BRONX Convenient transit, cheap rents and rising arts organizations, like the one run by Walter Puryear III, help make the borough the city’s latest cultural frontier Page 22
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SEPTEMBER 26 - OCTOBER 2, 2016 CRAINSNEW YORK BUSINESS
FROM THE NEWSROOM | JEREMY SMERD IN THIS ISSUE
What they call progress 4 AGENDA 6 IN CASE YOU MISSED IT Cuomo aids THE CITY COUNCIL’S PROGRESSIVE CAUCUS now numbers 18 of businesses 8 ASKED & ANSWERED affected by the chamber’s 51 members, a high mark for that group and a bombing reflection of how its cause has ascended in the post-Bloomberg 9 SMALL BUSINESS era. Several visited our newsroom last week to talk about the 10 WHO OWNS THE BLOCK bills—well-intentioned but possibly burdensome to business- 14 VIEWPOINTS es—that they believe will rectify what one council member 16 THE LIST called “the sins of our forefathers and foremothers.” FEATURES Those sins? Not requiring all development to include af- fordable housing and, generally speaking, an economy that has 20 GREEN CABS SEE RED left many behind. I tried to remind them that Michael Bloomberg steered the city 22 THE NEXT NEW ART SCENE through the aftermath of the Sept. 11 attacks and the Great Recession, and that today’s challenges are a product of our becoming a bigger, safer city where people want to live and work. One member’s parting words sum up their hope that those who have benefited from the policies of the past give the new administration’s policies time to take root. “If we can just get the real estate community and [residents like those on] the Upper East Side to hold on for five years, and five years after that, what you will see is a city that is going to rise together, not a city where [only] the upper half of the 1% rises P. 36 magnificently, but instead all boats lift together.” But if interest rates rise, tax revenue DANELLE SIMONELLI drops, venture capital slows and real estate sinks, chances are they won’t. 36 GOTHAM GIGS
Vol. XXXII, No. 39, Sept. 26, 2016—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double 37 SNAPS issues the weeks of June 27, July 11, July 25, Aug. 8, Aug. 22 and Dec. 19, by Crain Communications Inc., 685 Third Ave., 38 FOR THE RECORD New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Ave., Detroit, MI 48207-2912. For subscriber 39 PHOTO FINISH service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. (GST No. 13676- 0444-RT) ©Entire contents copyright 2016 by Crain Communications Inc. All rights reserved.
SIMONE DEVELOPMENT COMPANIES IS PLEASED TO WELCOME WESTMED MEDICAL GROUP TO THE BOYCE THOMPSON CENTER
718-215-3000 OPENING MARCH 2017 BUCK ENNIS
September 26, 2016 | CRAIN’S NEW YORK BUSINESS | 3
P003_CN_20160926.indd 3 9/23/16 8:18 PM WHAT’S NEW SEPTEMBER 26, 2016
AGENDABusiness improvement districts remain as vital today as ever
usiness and property owners in New York City don’t like pay- ing taxes any more than their counterparts elsewhere, and don’t hesitate to speak up about things that bother them. In that light, it is impressive that business improvement districts Bhere—which are funded by assessments on property taxes and typically result in higher rents—do not generate more controversy than they do. It speaks to the general level of satisfaction with BIDs and the virtually scandal-free history they have had in the city. GREEN AND Of course, opposition to proposals for new BIDs does pop up, as do CLEAN: BIDs keep streets complaints about existing ones, as Aaron Elstein reported last week in a and parks story that drew an impassioned response from business leaders. Things spiffy. do get heated at times (and even got physical a few years ago when a BID was proposed for Chinatown). But overall, the criticism contrib- And they certainly help New York by providing entry-level jobs to those utes to a healthy debate that keeps these groups honest and on their who need them, as Doe Fund founder George McDonald eloquently toes. It also ensures that they are not created thoughtlessly, secretly or explains in a letter to the editor on page 14. undemocratically. The process is rigorous, with plenty of opportunity It is true that one rationale for the formation of BIDs in the 1980s for feedback and oversight, including votes by affected parties and the and 1990s is virtually gone: crime. No longer are people afraid to shop City Council. Once established, they are without the security personnel that BIDs overseen by unpaid board members who BIDs ll major gaps in city services, once commonly hired to supplement the have a vested interest in their success. The NYPD. But the organizations remain vital system works. provide employment and advance the today, which explains why they have pro- In a perfect world, there would be no collective cause of commercial strips liferated across the city even as crime has demand for BIDs because the government plummeted by nearly 75% from its peak. would provide commercial districts with They not only help individual businesses all the services they need, such as clearing the sidewalks and gutters of but also advance the collective cause of commercial strips by provid- litter rather than ticketing the stores that are victimized by it. For that ing advocacy and expertise. Today, their bene ts are so baked in that matter, in a perfect world people would not litter in the rst place. But New Yorkers take them for granted, but old-timers well recall the days they do, and the city will never stop issuing summonses. BIDs may well when midtown was awash in litter by the end of every workday. We save businesses money by cleaning up before sanitation agents come by. certainly do. — THE EDITORS
FINE PRINT Columbia University’s $9.6 billion endowment earned an average of 10.1% annually over the past 10 years, tying it with Princeton for best investment returns in the eight-school Ivy League. The Wall Street Journal reports that underperforming Harvard is considering tapping N.P. Narvekar or Amy Falls, the chief endowment of cers of Columbia and Rockefeller universities, respectively, to take over its $37.6 billion fund.
BY GERALD SCHIFMAN STATS
25 WORDS OR LESS CHARGING AHEAD
ELECTRIC CARS ARE ON THE RISE in the state, but less so in New York City— AND THE CITY which Chevrolet now hopes to change with its new Bolt EV. The standard business “ Electric cars in model for a strip club New York City in 2015, is outmoded. You have 2,559 up 18.5% since 2012 Electric cars in New York’s to do something other 57 counties, 68.2% different ... to survive. 3,898 more than in 2012 Charging stations in the —“Margaritte,” the owner of a strip ve boroughs club operated out of her Brooklyn 549 apartment, about the competitive Miles the Chevy Bolt EV (pictured) can travel on a advantage she has by being a woman full charge—enough to drive from Manhattan to business-owner in that industry 238 Montauk and back
BUCK ENNIS ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY SOURCES: NYDatabases.com, NYSERDA, Chevrolet
4 | CRAIN’S NEW YORK BUSINESS | SEPTEMBER 26, 2016
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NOTES: None | FONTS: Helvetica Neue LT Std (47 Light Condensed), Neue Haas Grotesk Display Std (75 Bold, 55 Roman) | IMAGES: CNY_MCN_160902_A1_CoffeeShop_SWOP_V1.tif (CMYK; 335 ppi), vz_fios_bv_v_cmyk_p.eps AGENDA ICYMI CRAINSNEW YORK BUSINESS EDITOR IN CHIEF Rance Crain publisher, vp Jill R. Kaplan assistant to the publisher Devin Arroyo, 212.210.0701 Charges against Cuomo aide EDITORIAL editor Jeremy Smerd assistant managing editors Erik Engquist, lay the governor low Jeanhee Kim, Robin D. Schatz web editor Amanda Fung art director Carolyn McClain PERHAPS THE MOST impressive of Gov. Andrew Cuomo’s photographer Buck Ennis senior reporters Joe Anuta, Aaron Elstein, political skills is his ability to make lemonade out of Matthew Flamm, Daniel Geiger reporters Rosa Goldensohn, lemons. When anything bad happens—a natural disas- Jonathan LaMantia, Caroline Lewis, P Addie Morfoot ter, a newspaper exposé, a legislative snafu—Cuomo springs FALLING OUT: Charges against data reporter Gerald Schifman into action and comes off looking like a take-charge executive Joseph Percoco web producer Peter D’Amato and problem solver. Task forces are formed, executive orders cast a shadow columnist Greg David over the governor. contributing editors Tom Acitelli, issued, regulations unveiled and legislation passed, accompa- Theresa Agovino, Erik Ipsen, Brendan O’Connor, Cara S. Trager nied by smooth public-relations rollouts. It’s the primary rea- ADVERTISING son his in-state public approval rating is second-highest in the www.crainsnewyork.com/advertise advertising director Irene Bar-Am country among Democratic governors. [email protected] or 212.210.0133 Rarely do his carefully orchestrated plans go awry. But not never. When the governor adeptly pushed a gun- senior account managers Zita Doktor, Jill Bottomley Kunkes, control bill into law in the wake of the Sandy Hook massacre, his poll numbers plunged in gun-loving upstate, Rob Pierce, Stuart Smilowitz, Debora Stein where he had invested much time and money to help the economy and enhance his popularity. Later he formed the senior marketing coordinator LeAnn Richardson Moreland Commission in response to a corruption scandal, only to have it backfire when newspapers reported sales/events coordinator Ashlee Schuppius 212.210.0282, that his aides pressured the panel to abandon inquiries that could embarrass the governor. [email protected] Last week it happened again. U.S. Attorney Preet Bharara and state Attorney General Eric Schneiderman announced ONLINE general manager Rosemary Maggiore charges stemming from Cuomo’s signature upstate economic-development program. Among the arrested was his 212.210.0237 close friend for decades, former top Cuomo aide Joseph Percoco, for allegedly steering state money in exchange [email protected] CUSTOM CONTENT for kickbacks and a job for his wife. Cuomo’s command-and-control strategy failed when the investigator he ap- director of custom content Patty Oppenheimer 212.210.0711 pointed to probe the program was ordered by Bharara to back off. The governor’s critics declared that he had not [email protected] delivered on his pledge to clean up Albany. Cuomo himself was not accused of wrongdoing, but it was nonetheless multicultural sales manager Giovanni Perla [email protected] a low moment that left him powerless to act. — ERIK ENGQUIST senior custom marketing manager Sonia David, [email protected] EVENTS www.crainsnewyork.com/events director of conferences & events Insider trading charge DATA POINT of the 1.3-mile waterfront park into a Courtney Williams, 212.210.0257 [email protected] The Securities and Exchange Commis- THE COST TO U.S. TAXPAYERS FOR major destination in the city. To pay manager of conferences & events sion last week charged Leon Cooper- for park maintenance, she supported a Adrienne Yee REPAIRING AND ELEVATING HOMES man and his firm, Omega Advisors, plan to develop apartment buildings in AUDIENCE DEVELOPMENT one of the oldest hedge funds, with $5.5 DAMAGED BY SUPERSTORM the park, a position opposed by many director of audience & content billion in assets under management, local residents. In her new role, she partnership development SANDY IN 2012 COULD REACH Michael O’Connor, 212.210.0738 with insider trading. The SEC alleged plans to improve the quality of open [email protected] Cooperman, the Bronx-born son of a $1 MILLION PER HOME space in downtown Brooklyn. CRAIN’S 5BOROS www.5boros.com plumber, used confidential information Irene Bar-Am, 212.210.0133 to profit from the trading of Atlas Pipe- New York ‘geniuses’ [email protected] line Partners shares. Seven of 23 MacArthur grant recipi- REPRINTS reprint account executive Krista Bora ner, which is expected to anchor the ents this year hail from the New York 212.210.0750 Bridgegate trial 80-story tower, and handbag purveyor area. Among the honorees are play- PRODUCTION Prosecutors said New Jersey Gov. Chris Coach, which opened its office at the wright Branden Jacobs-Jenkins, poet production and pre-press director Christie knew at the time that his top far West Side property earlier this year. Claudia Rankine and prize-winning Simone Pryce media services manager Nicole Spell aides were closing lanes on the George author Gene Luen Yang. The John D. SUBSCRIPTION CUSTOMER SERVICE Washington Bridge to snarl traffic and Vroom revs up and Catherine T. MacArthur Founda- www.crainsnewyork.com/subscribe punish a mayor who did not back his The Flatiron-based online used-car tion gives each winner $650,000, paid [email protected] 877-824-9379 (in the U.S. and Canada). re-election bid. Christie has not been dealership raised $50 million in a Series over five years. $3.00 a copy for the print edition; or $99.95 charged with any wrongdoing. Mean- E round led by T. Rowe Price Associ- one year, $179.95 two years, for print subscriptions with digital access. while, Port Authority of New York and ates. Since its inception three years ago, to contact the newsroom: New Jersey Executive Director Patrick the company has raised $218 million. www.crainsnewyork.com/staff Foye testified that one of Christie’s top Vroom, which expects to do more than 685 Third Ave., New York, NY 10017-4024 phone: 212-210-0100 fax: 212-210-0799 appointees at the agency, which operates $1 billion in sales this year, will use the Entire contents ©copyright 2016 the bridge, repeatedly asked him to close money to expand nationally. Crain Communications Inc. All rights lanes that Foye had ordered re-opened. reserved. ©CityBusiness is a registered Revamping street fairs trademark of MCP Inc., used under license agreement. Ivory-trade crackdown The mayor wants to set aside half the CRAIN COMMUNICATIONS INC. The owners and a salesman of a mid- spaces at street festivals for local busi- BOARD OF DIRECTORS town Manhattan antiques store were nesses and to reduce the number of chairman Keith E. Crain president Rance Crain arrested for selling ivory from an Afri- fairs in Manhattan. Under the plan, Lang Lang ♥’s New York treasurer Mary Kay Crain, Cindi Crain can elephant without a license, a felony only 100 fairs would be allowed in senior executive vp, William Morrow since 2014, when the state passed a law Manhattan each year and 100 in other In an effort to get more tourists executive vp, director of strategic from China to visit New York, the operations Chris Crain to curb the ivory trade. The state seized boroughs. Some worry that the change executive vp, director of corporate 126 store items worth $4.5 million. could harm nonprofits that sponsor city’s marketing agency named operations K.C. Crain and raise money from the fairs. Chinese pianist Lang Lang as its senior vp, group publisher David Klein first cultural tourism ambassador. vp/production, manufacturing David Kamis Midtown tenant decamps to West Side chief financial officer Bob Recchia Norway’s largest lender, DNB ASA, is New downtown Brooklyn cheerleader The announcement by NYC & chief information officer Anthony DiPonio relocating its North American head- Longtime Brooklyn Bridge Park leader Company was timed to coincide founder G.D. Crain Jr. [1885-1973] with the release of his new album, chairman Mrs. G.D. Crain Jr. [1911-1996] quarters to Hudson Yards from the Regina Myer was named president secretary Merrilee Crain [1942-2012] MetLife Building in midtown. The of the Downtown Brooklyn Partner- New York Rhapsody, described as bank will be taking the entire 68th floor ship, which promotes development in a love letter to the city.
AP IMAGE at 30 Hudson Yards, joining Time War- the area. Myer led the transformation
6 | CRAIN’S NEW YORK BUSINESS | September 26, 2016
P006_CN_20160926.indd 6 9/23/16 8:17 PM AGENDA HEALTH CARE
Startup says it can predict which medication will work for depression Spring uses data to help patients find the right treatment BY CAROLINE LEWIS
pring, an early- sion psychiatry,” said Dr. seen any reliable tests for in seed funding. Koh said er of behavioral health medicine company Myr stage Man- Sander Markx, assistant behavioral health. she envisions eventually services like Magellan iad Genetics acquired As- hattan startup professor of clinical psy- Spring is part of the being acquired either Health. surex Health, a personal- co-founded by chiatry at Columbia Uni- New York Digital Health by a precision medicine Such dreams might ized medicine company Stwo Yale University versity Medical Center. Accelerator and is cur- company, a data-driven not be too pie-in-the- in behavioral health, for grads and a Yale grad- So far, he said, he hasn’t rently raising $950,000 insurer or a large provid- sky. In August, precision $225 million. n uate student, says it has developed a simple dig- ital tool that can predict with a high degree of ac- curacy whether a patient suffering from depres- sion will benefit from a certain medication. The company has developed a 10-minute digital questionnaire for patients with ma- jor depression to help speed up the process of selecting the best drug. The survey asks pa- Bridge the gap tients about symptoms ranging from trauma between competitive pricing to sleep habits and then compares the answers with data from clinical and the stability you need. studies. Using the digital tool, Spring has been able to It’s time to switch to Oxford. predict with about 65% accuracy whether Cel- exa and Lexapro will help a depressed patient. It’s currently develop- ing additional tests for other behavioral health conditions and drugs, said April Koh, the com- pany’s co-founder and chief executive. In the U.S., almost 16 million adults had at least one major depres- sive episode in 2014, according to the Na- tional Institute of Men- tal Health. Only about With Oxford, you get the choices you’re looking for—with health plans you’ll prefer, prices you’ll a third of patients with like and the peace of mind that comes from working with a market leader. And now your business major depression expe- can take advantage of new lower rates on many Oxford plans across all three of our networks. rience remission with the first medication they Explore Oxford and experience the advantages of working with a local carrier that has spent try, according to the larg- the last 30 years serving businesses like yours. est study on treatment- resistant depression, funded by NIMH. New, lower-cost Another approach to Freedom Network Liberty Network customized treatment is Metro Network the growing field of pre- cision medicine, which uses biological markers to select the best medi- Find out why many businesses are switching to Oxford. cation. It’s time Global Market In- to switch. Call your broker or visit uhc.com/OxfordNY today. sights estimates the pre- cision medicine market will reach $87.8 billion worldwide by 2023. 1059735.0 8/16 Oxford insurance products are underwritten by Oxford Health Insurance, Inc. “In general, there’s Oxford Health Plans LLC. All rights reserved. 16-2438 NY-16-407 huge potential for preci-
September 26, 2016 | CRAIN’S NEW YORK BUSINESS | 7
P007_CN_20160926.indd 7 9/23/16 4:21 PM AGENDA ASKED & ANSWERED ENTERTAINMENT INTERVIEW BY ADDIE MORFOOT
LESLI KLAINBERG FILM SOCIETY OF LINCOLN CENTER
ore than 200,000 people each year attend films presented by the Film Society of Lincoln Center. Lesli Klainberg manages the society’s 50-person staff and $12 million budget, and oversees the I wouldn’t say MNew York Film Festival, one of the most prestigious film festivals it’s like being in the world, an awards-season bellwether and a driver of the “ in the starting nonprofit’s $3.7 million in box-office revenue. The 54th annual festival runs Sept. 30 to Oct. 16 in five Lincoln Center theaters. blocks at the Olympics, but it is, sort of Who attends the New York Film Festival? Our main slate brings in a lot of our traditional members and pa- trons [there are 5,000 Film Society members], who for the most part come from the Upper West and Upper East sides and stretch all the way down the West Side through the Village. We definitely get a lot of people from Brooklyn. Convergence, our new-media program [featuring immersive storytelling, virtual reality, augmented reality and installations], brings in a whole group of younger people who weren’t looking at the film festival before.
The program includes more than 120 feature-length films; three galas; “An Evening With” conversation with Adam Driver and Kristen Stewart; DOSSIER and a master class with Jim Jarmusch. How do you pack it all in 17 days? It’s a very intense work period. Every department of the Film WHO SHE IS Executive Society works toward it. So in these last couple of weeks, when director, Film Society the final programming choices are made, I wouldn’t say it’s like of Lincoln Center being in the starting blocks at the Olympics, but it is, sort of. SALARY $249,215 The Film Society is a nonprofit organization. Part of your duties are to AGE 52 fundraise. Is the festival where you do that? BORN Concourse Village, There are a few events during the festival, like “An Evening With,” South Bronx that serve as fundraisers, but the film festival is not here to make RESIDES Park Slope, money in that way. We fundraise year-round, and our big fund Brooklyn raiser is the Chaplin Gala in the spring. EDUCATION Fiorello H. LaGuardia High School Ava DuVernay’s The 13th will kick off the festival—the first time NYFF has of Music & Art and opened with a nonfiction film. After criticism a few years ago that they Performing Arts; studied were overlooked, will documentaries become major players now? filmmaking at SUNY We have become a place where documentary audiences are Purchase looking for films. Our mission is very much about enriching, cele- FILM CREDITS Her brating and exploring the art and craft of cinema. Festival director company, Orchard Kent Jones and his selection committee saw Ava’s film [about Films, has produced acclaimed documen- racial inequality] and felt that it was a piece of art that also taries; her credits elevated a discussion that is very important in our country. include Paul Mon- ette: The Brink of Why did the society in June screen an episode of the Showtime series Summer’s End Homeland, followed by a conversation with series star Claire Danes? (1996) and the PGA We are not going to be doing a TV-series festival anytime soon, Award-nominated A but these special events are meaningful to us. They often bring Place at the people to the Film Society who have never been. That is a key Table (2012). reason for it. BIZ CRED She is the fifth woman to In 2014, the Film Society launched a residency program that has lead the Film Society, brought the study of film to 670 third- and fourth-graders in public founded in 1969.
schools. What prompted this? BUCK ENNIS It’s part of an effort to be more connected to our own neighbor- hood. First and foremost, we wanted to be in the local schools since so much art education funding is being cut. But it’s also an opportunity to let the neighborhood know about our program- ming. Lincoln Center can be imposing. We have a very accessible art form that we are celebrating, and it’s something that people, particularly young people, connect with. n
8 | CRAIN’S NEW YORK BUSINESS | September 26, 2016
P008_CN_20160926.indd 8 9/23/16 4:22 PM AGENDA SMALL BUSINESS
Retailers hit by bomb blast recover, and the state promises to help But budget watchdog says grants set bad precedent BY ROSA GOLDENSOHN
ive days after a grants to help businesses Cuomo provided grants Citizens Budget Com- Sept. 17 bomb recover from a disas- up to $10,000. “I don’t mission said. “There will BROKEN MIRRORS: blast in Chel- ter. After Sept. 11, 2001, find the announcement probably not be very King David Gallery will sea injured the state assisted retail about helping Chelsea many eligible, and they look to have its costs Fdozens of New Yorkers, locations. After hur- businesses concerning,” will need to get insur- reimbursed. Gov. Andrew Cuomo ricanes Lee and Irene, Carol Kellermann of the ance proceeds first.” n announced a generous offer to the residents and business owners in the surrounding area: The state will cover loss- es from the blast that in- surers do not. State Department of Financial Services staff- ers last week worked out of a van stationed on West 23rd Street, help- ing locals file insurance claims and apply for the state grants. The explo- sion blew out the front windows at King David Gallery, a frame and mirror store. The dump- ster in which the bomb went off was just out- side. Shattered mirrors were stacked against the walls last week while workers rebuilt the shop’s façade. “We’re waiting on insurance. ... We don’t have the scope of what’s going on, this is just a cleanup,” said a member of the fami- ly that owns the store. “Right now it’s coming out of pocket until we can get reimbursed.” Budget watchdog E.J. McMahon of the Empire Center said the prom- ise of money seemed “impulsive” and could set a bad precedent. “I just don’t know, if you ever had to, God forbid, deal with something on a much bigger scale— how you could possibly afford it?” he said. It seems unlikely that the state will have to shell out much for property damage. Not only was it not extensive but federal law requires property insurance to cover claims for ter- WE HAVE SMART PHONES. WHY NOT SMART BOILERS? rorism-related damage up to $5 million. But Cuomo also pledged to Upgrading to a modular boiler lets you manage heating in real-time based on demand. And the more control you have over cover businesses’ losses your heating system, the more control you have over your energy costs. To learn about the upside of upgrading through our from temporarily clos- cutting-edge interactive experience, visit our website. And call 1-877-797-6347 to see if you qualify for financial incentives. ing after the explosion. ManageEnergy.conEd.com #ManageEnergy This is not the first time the government
NEWSCOM has provided small
September 26, 2016 | CRAIN’S NEW YORK BUSINESS | 9
P009_CN_20160926.indd 9 9/23/16 4:16 PM AGENDA WHO OWNS THE BLOCK
Brearley School nally gets its expansion
The private K-12 girls school buys out rent-stabilized tenants 610 E. 83RD ST.
BY TOM ACITELLI
he Brearley School on the Upper East Side led plans with the city in early 70 AND 72 EAST END AVE. AND 542 E. 83RD ST. September to construct a 12-story The Brearley School bought this trio of apartment buildings—each 85 EAST END AVE. with eight apartments—in May 2010 for a total of $26.4 million. building at East 83rd Street and East BlackRock Realty, the real estate arm of TEnd Avenue. e expansion for the all-girls private investment rm BlackRock, bought the school that counts Caroline Kennedy and Tea Leoni 155-unit apartment building in October 2005 for $75.24 million. Sixty-three of as alumnae is a long time coming. Brearley’s cur- 532 E. 83RD ST. the apartments are rent-stabilized. Five rent site at 610 E. 83rd St. was built in 1929, when years later, the Brearley School, across the school was more than 40 years old. It’s meant to Townhouse Property Group, a Man- the street, signed a contract to buy the rear half of the building to convert accommodate 440 pupils, yet the school has around hattan landlord led by Sean Lavin, bought the ve-story, 11-unit apart- into classroom space, but the deal fell 700. About 10 years ago, Brearley was in contract ment building in November 2013 through because of problems getting to buy roughly half of an apartment building across for $4.5 million. All of the apart- rent-stabilized tenants to vacate. That the street. at deal fell through in 2010, in part ments are market-rate. same year, the school bought 70-72 East End Ave. and 542 E. 83rd St. because the school was seen as trying to force out rent-stabilized tenants, some of them elderly. e year the contract collapsed, how- ever, Brearley bought three tenements 535 E. 82ND ST. along East End Avenue for $26.4 million. It Also known as 60 East End Ave., the is those buildings that the school plans to 42-story, 123-unit co-op has seen its replace with much-needed classroom space. last 40 sales in the building average And this time, the school is getting its $2.9 million—or $1,115 a square foot. That is less than the $1,331 way. Earlier this year, Brearley paid 15 ten- average for all Manhattan co-ops in ants “a very substantial amount” to vacate the second quarter of 2016. their rent-stabilized apartments, according to media reports. Across the city, private schools like Brearley, 610 E. 83RD ST. Ethical Culture Fieldston in the Bronx and Saint Ann’s in Brooklyn are taking advantage of low in- Brearley’s main site has more students terest rates to invest in renovations and expansions than it can accommodate. amid enrollment growth fueled by more families choosing to live in the city. Enrollment in the city’s nonreligious, independent private schools such as 44 EAST END AVE. Brearley increased by 6,600 students from academ- Carnegie Hill Properties, a Manhattan ic years 2002-03 to 2012-13, according to the lat- devel oper, bought the prewar apartment est Independent Budget O ce statistics. building in May 2013 for $10 million. The company signi cantly renovated the Many private schools are also getting a 525 E. 81ST ST. building and renamed it the Arden. Leas- little help from Build NYC Resource, a ing for its 28 luxury apartments began ELK Investors, led by developer Elias in early 2016. Studios start at $2,750 public-development corporation run by Kalimian, bought the ve-story, 44- a month and one-bedrooms at $3,700. the city’s Economic Development Corp. unit apartment building in September that gives certain institutions access to 2005 for $7,379,400. Fifteen of the apartments are rent-stabilized. tax-exempt bond nancing.
In July 2015, Build NYC agreed to fa- 40 EAST END AVE. cilitate the sale of $50 million of tax-exempt bonds The Lightstone Group, an investment- from Brearley to help nance the expansion. e 529 E. 81ST ST. management and development rm rest of the approximately $107.5 million will come The Noam Corp., based in Borough Park, in Manhattan, bought the six-story, from fundraising and the school’s endowment. Brooklyn, and led by managing agent Solo- 43-unit apartment building in May Construction is expected to start in February, with mon Gott lieb, bought the ve- oor, 100-unit 2015 for $32.5 million. Lightstone is demolishing the building and replac- an opening planned for September 2019. I apartment building in September 2011 for $16.9 million. Ninety of the apartments are ing it with an 18-story, 30-unit condo rent-stabilized. In July, the LLC that Gottlieb tower, expected to open in 2018. formed to buy the building took out a $17.8 million mortgage on the property. OASIS.COM
10 | CRAIN’S NEW YORK BUSINESS | SEPTEMBER 26, 2016
P010_CN_20160926.indd 10 9/23/16 4:17 PM REAL ESTATE
TV network among first FRESH DIGS: A&E’s new home was to put down Brooklyn roots once a Studebaker factory. A&E’s expansion follows investment in Vice Media BY DANIEL GEIGER
&E Networks and recently launched lion for a stake in Vice. is doing as well as other ees lived in and around for media companies to has signed a a television channel in “I wouldn’t say we’re do- scrappy, entrepreneurial Crown Heights,” said come here is it’s where lease to take partnership with A&E, ing this deal to be closer Brooklyn-based compa- Marc Agger, a principal the labor is, where the 11,775 square has headquarters in to Vice physically, but nies,” Cohan said. at Brownstoner Develop- smart and creative and Afeet at 1000 Dean St. Williamsburg. Last year, we’re taking notes and The company “found ment, one of 1000 Dean the culturally cutting- in Crown Heights, be- A&E invested $250 mil- learning from what Vice that a lot of their employ- St.’s owners. “A big draw edge people live.” n coming one of the first major TV producers to have a sizable footprint in Brooklyn. The media company, which owns six brands including George Chatzopoulos OWNER Lifetime and the His- CHIP’S FAMILY RESTAURANT tory channel, will use the space to house its newly launched digital- content agency, 45th & Dean. “When you look at Brooklyn and how much it has evolved, and the talent that ex- ists there and how startup-intensive it has become, it’s a logical place to headquarter an entrepreneurial ven- ture like this,” said Sean Cohan, president of in- ternational and digital media at A&E. “This is something we wanted to incubate outside our Serving up corporate offices.” 45th & Dean, which derives its name from hospitality. the location of its new Brooklyn digs and its corporate headquar- ters at 235 E. 45th St., will focus on creating branded content for the network’s advertisers as Understanding well as digital content for A&E. Most of the what’s important. output will be short- form, destined for the network’s websites, apps and social-media plat- forms, said Cohan. “Let’s say you go to At Chip’s Family Restaurant, they know that offering excellent food and treating customers warmly is the recipe for success. the History channel’s website and there’s a And owner George Chatzopoulos appreciates the same level of friendly service from M&T Bank. We helped him grow and piece on the anniversary even financed his food truck – enabling him to take his tasty treats on the road. Our eagerness to help businesses like Chip’s of Pearl Harbor—that’s is why M&T is a leading SBA lender1 in the country and why we’ve been recognized by Greenwich Associates for excellence something this office 2 will handle,” he said. in small business banking. To learn how M&T can help your business, visit mtb.com/businessbanking. Asking rents for the Dean Street space were in the $30s per square foot, and A&E’s 10-year lease is for ground- and second-floor portions. 45th & Dean will begin operating in the new LENDING SOLUTIONS | MERCHANT SERVICES | TREASURY MANAGEMENT | DEPOSITORY SERVICES space early next year, Equal Housing Lender. the company said. 1According to statistics released by the U.S. Small Business Administration (SBA) for total approved loans through the SBA’s 7(a) lending program during the federal fiscal year ending 9/30/2015. Vice, a media com- 2Based on the 2015 Greenwich Excellence Awards in Small Business Banking. pany that has a cable ©2016 M&T Bank. Member FDIC.
PROPERTYSHARK news show on HBO
September 26, 2016 | CRAIN’S NEW YORK BUSINESS | 11
P011_CN_20160926.indd 11 9/23/16 4:19 PM AGENDA TRANSPORTATION
Designs for new bus terminal are seen as nonstarters We’re all about YOU! Political missteps waste months of planning BY DANIEL GEIGER
he Port Authority of New York and New Jersey last week released the results of a months- long design competition that Twas supposed to provide breakthrough ideas for how to construct the bistate agen- cy’s next megaproject: the redevelopment of the bus terminal on Eighth Avenue. Instead, West Side elected officials said ARCADIS OF NEW YORK: Repurposes existing the proposals were dead on arrival, nulli- tunnel as pedestrian passageway fied by a deal reached earlier in the week in which the Port Authority agreed to ex- pand the design process to better include the public’s and other stakeholders’ input. Chief among the criticism was that the design competition didn’t ask contestants to explain how a new terminal should operate alongside other regional transit infrastruc- 488 Madison Avenue, New York, NY 10022 (212) 661-6166 ture, or whether a portion of it should be 50 Jericho Quadrangle, Jericho, NY 11753 (516) 256-3500 relocated to New Jersey to connect com- 10 Esquire Rd., Suite 4, New City, NY 10956 (845) 634-5300 ARCHILIER ARCHITECTURE CONSORTIUM: A muters to other modes of travel, such as rail larger terminal with 9.8-acre rooftop park and PATH service. www.grassicpas.com “I don’t think any of these five designs are likely to survive,” Rep. Jerrold Nadler, one of the officials who had protested the terminal’s planning process, told Crain’s. “We are opposed to considering these pro- posals or any that don’t come out of a more comprehensive planning process. These came out of a process where there were limited planning criteria, and that’s wrong.” How did the redesign end up so far HUDSON TERMINAL CENTER COLLABORATIVE: A $15 billion station buried underground down the road, only to have the wheels fall off? The short answer: politics. Several sources traced the first serious misstep to the days leading up to the agency’s March Retail Space board meeting. That’s when Port Authority Vice Chairman John Degnan, an appointee of Gov. Chris Christie, threatened to with- Available draw his support for a $4 billion project to redevelop LaGuardia Airport’s central ter- 1010 Southern Blvd, Bronx 10459 minal, a pet project of Gov. Andrew Cuo- mo’s. That project had taken two years to PELLI CLARKE PELLI ARCHITECTS: Compact Prime location with multiple national businesses. arrange, but if the agency’s board did not design and, at $3.7 billion, low-cost Previously a bank. 6,000 sq. ft. 4,000 sq. ft. on street agree to focus the bus terminal’s redevelop- level and 2,000 sq. ft. on the lower level designed for the ment exclusively on the West Side of Man- hattan, Degnan threatened to kill it. general public. Store front 40 ft. wide by 100 ft. A/C, The agency’s then-vice chairman, Scott heating, full electrical service, sprinkler, second means of Rechler, reluctantly agreed, stating at the egress, bank walk-in vault, employee lunchroom. time that he wanted to study ways to reduce bus traffic to the city by transporting New Mo. Rent $30,000 Jersey bus passengers to commuter train stations on that side of the Hudson River. Nadler told Crain’s that New Jersey op- PERKINS EASTMAN: Relocates terminal to tions for a portion of the terminal must basement level of Javits Center again be seriously explored if the Port Au- thority hopes to qualify the project for fed- the terminal under its current location, eral funding.“You’re violating the National relocating it to the basement of the Javits Environmental Policy Act if you don’t look Center or expanding it through the seizure at all the alternatives when you undertake a of private property using eminent domain major project like this,” Nadler said. and building a rooftop park. Meanwhile, the project isn’t a total loss That leaves two plans in the running, Principals only for the competitors. The Port Authority is both of which suggest building a new ter- Zale Management Corp./Landlord still expected to make good on its com- minal just west of Ninth Avenue between mitment to award up to $1 million in prize West 38th and West 40th streets. It remains 845-216-9555 • [email protected] money to the winner or group of winners. to be seen whether any of the designs will Three of the submissions were unlikely resurface after the design process resets. to triumph because they prescribed diffi- “I doubt that any one of them will be the cult-to-build and costly solutions: burying final design,” Degnan said.n
12 | CRAIN’S NEW YORK BUSINESS | September 26, 2016
P012_CN_20160926.indd 12 9/23/16 4:20 PM AGENDA HOUSING
Demise of affordable project bodes ill for housing plan Is opposition to the mayor’s signature program growing? BY JOE ANUTA
nonprofit de- footage. To date, the pol- Harlem, Long Island City a precedent that could istration, the council nor ing gets questioned,” veloper’s deci- icy has been applied on a and Gowanus, Brooklyn. lead other communities most community mem- said Benjamin Dulchin, sion last week neighborhoodwide scale Still, rejections of in- to oppose them as well as bers want this to become executive director of to withdraw only in East New York, dividual applications the larger neighborhood a moment where the trade group Association Aits plan to construct 209 Brooklyn, but city plan- on behalf of local city rezonings. need for mission-driven, for Neighborhood and units of affordablening has its eye on East council members create “Neither the admin- 100% affordable hous- Housing Development. n housing in Sunnyside, Queens, represented the latest setback for the mayor’s effort to build 80,000 units of new af- fordable housing. “Just because you say the words ‘affordable housing’ doesn’t mean it should get an auto- matic pass,” said Gerald Parrin, who heads the tenant association at the 472-unit complex across the street, known as Sunnyside Gar- We congratulate our client dens, which is owned and managed by the same developer, Phipps Houses, that withdrew its building application. In August, residents Josh Schuster of Inwood rejected a development with 175 affordable apartments. Parrin related similar on launching concerns: He and his neighbors did not like the project’s relatively large scale. Parrin also bemoaned the possible loss of parking if Phipps turned the site into housing. City Councilman Jimmy Van Bramer also cited Phipps’ decision not to use union labor slvrb.com as a reason to reject the 10-story develop- ment, even though most affordable-housing proj- ects don’t use unionized with a $50,000,000 Capital Investment workers. Despite the defeats in Sunnyside and Inwood, the de Blasio adminis- tration said it will have plenty of opportunities to put into practice its new Mandatory Inclu- sionary Housing policy, which requires develop- ers to set aside afford- able units in exchange for being able to build taller. That’s because the Department of City Planning is rezoning whole neighborhoods that will require devel- goulstonstorrs.com opers to include afford- able housing in projects that get extra square
September 26, 2016 | CRAIN’S NEW YORK BUSINESS | 13
P013_CN_20160926.indd 13 9/23/16 4:20 PM AGENDA
Time for Mayor de Blasio NYC’S KEY NUMBERS to change his sad story Gains by the 99% could help make his case for re-election $55,752 2015 median income, up 5.1% BILL DE BLASIO IS ei- 5.1% in 2015, according to the Ameri- about 300,000 new positions. ther one lucky mayor can Community Survey. The figure, ad Of course, de Blasio didn’t see those or the right man for justed for inflation, means income has numbers as all that great in his 2013 20% the times. Either way, essentially returned to where it was be- campaign and for almost two years Poverty rate—lowest since 2009 he has a powerful new fore the 2008 downturn. Meanwhile, the after he took office. He argued the re- talking point for his portion of New Yorkers living in poverty bounding economy had produced only re-election campaign declined to 20%, the best since 2009. low-wage jobs (only partially true), had next year: New York Inequality, for its part, hasn’t gotten benefited only the well-off (not really 1 GREG DAVID City’s ever-improving any worse, according to an analysis by true) and worsened the city’s yawning Inequality rank among U.S. cities economy. James Parrott at the Fiscal Policy Insti- inequality gap (mostly true). The question is whether he will use tute, though New York remains No. 1 With income rising and poverty it effectively. among large cities in that metric. declining, the mayor not only can talk honed a strategy of emphasizing how The missing piece of the current Previously, the lack of income gains about how well the city is doing, but the glass is much less than half full. economic expansion—or maybe the and the stubborn poverty rate had been can take credit for it. He can say it is Polls show he has convinced New York- right word is boom—fell into place the Achilles’ heel of an otherwise robust his strong support for minimum-wage ers that he is right and that they blame earlier this month with the release of economy. The final Bloomberg term increases, living-wage rules for those him for it. Now he has to change their data that showed a big jump in median saw the city add 361,000 jobs, easily doing business with the city, the uni- minds about the economy and himself. household income in the city and the erasing the losses of the downturn and versal pre-K initiative and an ambitious It will be a test of his political skills. n first significant drop in the poverty rate surpassing the previous record of 3.9 affordable-housing plan that have led in years. million jobs, set in 1969. So far, de Bla- to the improvement. GREG DAVID blogs regularly at Median household income rose sio has presided over the addition of However, for years, de Blasio has CrainsNewYork.com.
Shedding some light on the city’s BIDs ... and their cleanup crews, which do ‘a damn good job’
BIDS LIVE UP TO omy and are led by de Blasio and our admin- workers and often hire known, spend approx- hundreds of men from THEIR NAME boards that reflect their istration are invested in workers from places imately seven months the Doe Fund who keep As someone who works communities. Many sustainable, equitable, like the Doe Fund, a improving our city’s our city clean every day. daily with our city’s manage to deliver tre- neighborhood-based nonprofit that provides streets and sidewalks as First, the work they do business improvement mendous services on a development, and we jobs and shelter to the they gain valuable soft results in far-reaching districts, I was quite shoestring budget. More benefit from the local homeless.” skills and prepare for benefits for themselves, surprised to read such than half of our BIDs perspectives that BIDs That information was private-sector jobs. their families and the city an uncharacteristically raise less than a half-mil- often raise. delivered without con- This paid work is only as a whole. And second, sharp critique of their lion dollars per year, and The strength of BIDs text. I’d like to provide one part of a comprehen- they do a damn good job. role in Crain’s (“Shadow work in close partner- and their continued some of that context. sive program that helps GEORGE T. MCDONALD Government,” Sept. 19). ship with other local civ- success leave no doubt Our city’s sanitation them transition from President and founder From cleaning sidewalks ic groups to stretch those in my mind that they needs have long ex the streets and prison The Doe Fund to supporting public safe- resources to include will continue to be vital ceeded the Department to mainstream society. ty to attracting visitors to safety enhancements, elements of our civic and of Sanitation’s capacity. The immediate financial WHY WE WON’T VISIT small-business corridors, public space mainte- business landscape for That’s why supplemental needs of Ready, Willing NYC ANYMORE BIDs have a decades-long nance, beautification and decades to come. cleaning services, such as & Able participants Mayor Bill De Blasio did track record of strength- business promotion. ALICIA GLEN those offered by the Doe cannot and should not not keep his promise to ening businesses and Moreover, the critique Deputy mayor for housing and Fund, exist—and one be compared to those ban the horse-carriage communities. that BIDs have a voice at economic development of the primary reasons of a city worker living industry in NYC and BIDs are a significant City Hall overlooks the BIDs began in the first in significantly different has done nothing for part of the story of New very purpose of these THE ARTICLE ABOUT BUSINESS place. circumstances. the welfare of these poor York City’s resurgence, organizations: to address IMPROVEMENT DISTRICTS Yes, the men who It’s easy to point to animals. We love New and they remain deeply neighborhood needs, notes that “BIDs pay work as part of the Doe cost savings as BIDs’ York, we travel there a relevant today. which includes securing their cleanup crews Fund’s street cleaning motivation for hiring lot—a couple of times a The city’s 72 unique the attention of local about a third of what program earn less than men from the Doe Fund. year. No more. For one, BIDs have local auton policymakers. Mayor Bill the city pays sanitation city sanitation workers Yet we know from years it’s too sad to see these because they are not city of feedback that our BID poor animals; they are sanitation workers. They partners not only value clearly mistreated. Our are formerly homeless the improvements the respect level for the city or incarcerated men “men in blue” bring to has dropped so much who are in the midst of their districts, but also the because of this. There are rebuilding their lives opportunity to support nicer places to visit that through our Ready, Will- them on their path to per- would not subject horses ing & Able transitional manent self-sufficiency. to this enslaved, sad life. work program. The “men I’ll close with two BRENDA MACDOUGAL in blue,” as they’re often final thoughts about the Toronto
CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to [email protected]. Send columns of 475 words or fewer to [email protected]. Please
BUCK ENNIS, BRYANT PARK CORP. PARK BUCK ENNIS, BRYANT include the writer’s name, company, address and telephone number.
14 | CRAIN’S NEW YORK BUSINESS | September 26, 2016
P014_P015_CN_20160926.indd 14 9/23/16 5:07 PM ACTIVE LABOR FORCE MEDIAN INCOMES BY FERRY LANDING RESIDING WITHIN Pier 6, Brooklyn $117,746 A HALF-MILE OF FERRY East 62nd Street $109,977 Don’t ferry public money LANDINGS Pier 11, Manhattan $107,790 East 34th Street $101,374 to those who need it least 191,416 East 90th Street $91,656 Dumbo $85,936 Fix the plan to expand waterborne commuting BY ERIK BAGWELL East 23rd Street $84,958 Long Island City north $84,874 ill de Blasio swept into office who live closer, though longer rides Long Island City south $80,490 in January of 2014 with the cost the system more. Most subway sys- Roosevelt Island $79,579 message that “New York City tems have tiered pricing based on the Soundview $72,411 has become a tale of two cities, distance traveled. The majority of New Bay Ridge $67,120 Ba place where City Hall has too often ca- York’s ferry users reside within a half- North Williamsburg tered to the interests of the elite rather mile of a landing, benefiting a relatively $60,734 Greenpoint $60,371 than the needs of everyday New York- small group of predominantly higher- 35,237 Beach 108th (Rockaway) $46,323 At or below NYC ers.” One of the ways he plans to undo income residents. median income that is with a $325 million expansion of We all know that luxury apartments Astoria Cove $46,197 Brooklyn Army Terminal $42,545 Above NYC the ferry system from Soundview to the offering panoramic views are popping Below NYC Above NYC median income Rockaways, including three new routes up along the waterfront in Manhattan, median median Red Hook (Van Brunt St.) $33,864 and new East River landings. Brooklyn and Long Island City. These income income South Williamsburg $33,174 Tied to this expansion is a troubling are some of the city’s most desirable $0 $51,270 $102,540
caveat: The mayor will reduce the fare dwellings. Census data show median SOURCE: NYC Economic Development Corp. 2013 Citywide Ferry Study from $4 on weekdays and $6 on week- incomes for workers who live within ends to the price of a subway ride, now half a mile of most of the proposed fer- Yorkers in high-income waterfront travel. After all, the outer boroughs $2.75. Assuming the administration re- ry system’s landings are well above the neighborhoods, who certainly could af- have more residents commuting within alizes its estimate of serving 4.5 million overall city median income of roughly ford the current fare or the $160 monthly them than to Manhattan, according to riders a year, its ferry system will be- $52,000. Only five landings out of 19 unlimited pass. It will also subsidize an the Regional Plan Association. come the third-highest subsidized form would serve populations with a median untold number of tourists—probably a New Yorkers have urgent public of transportation in the city, at $6.60 income below the citywide figure. lot, given the number who use the free transportation needs, but subsidizing per passenger trip—more if ridership Of residents active in the labor force Staten Island Ferry to take selfies with boat rides for tourists and mostly high- falls short of projections. and living near a landing, 191,416 are the Statue of Liberty in the background. er-income people living along the East Of course, all forms of public trans- in areas with median incomes above The citywide ferry will undoubtedly be River will exacerbate the city’s inequal- portation are subsidized. In the case of the citywide median, versus 35,237 in used for Brooklyn Bridge selfies. ity, not reverse it. n the ferry system, what is important is areas with median incomes below the There are better, more targeted ways who is being subsidized. The subway citywide number. of helping average folks. Resources Erik Bagwell is a former research associ- is heralded as a great equalizer because The expanded ferry service with its should be spent on addressing the ate at the Citizens Budget Commission lower-income people who live far from low fare and large subsidy will over- transportation deserts where dollar and former budget analyst at the city’s Manhattan pay the same price as those whelmingly benefit high-income New vans operate, improving intra-borough Office of Management and Budget.
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September 26, 2016 | CRAIN’S NEW YORK BUSINESS | 15
P014_P015_CN_20160926.indd 15 9/23/16 5:07 PM AGENDA THE LIST NY AREA’S LARGEST ACCOUNTING FIRMS Ranked by number of area professionals
THE SCOOP TRENDS CASH FLOWS TO ACCOUNTANTS PROFESSIONAL GROWTH NON-BIG 4 PLAY CATCH-UP The Big 4 firms seriously staffed up on New Non-Big 4 firms have greatly expanded rain’s top 30 accounting firms enjoyed substantial growth last York professionals this year, while the other their overall company footprint ... year. The firms collectively topped $31 billion in revenue—2.9% practices grew faster away from the city. greater than in 2014—and their total professional employment Growth in employees per firm rose by 17.7% to nearly 45,000 positions. NY AREA FIRMWIDE CReal estate has been a catalyst. PROFESSIONALS PROFESSIONALS +19.1% “If you look at the basic economic building blocks of New York, the Big 4 +21.8% +8.2% city’s main driving engines are financial services, real estate, health care, tech and insurance,” said Ken Weissenberg, partner-in-charge of the real Non-Big 4 +9.4% +11.3% estate services group at EisnerAmper (No. 5 on Crain’s list). “Each one of those practices is important to accounting firms. Real estate also acts as +9.8% a connector with our other practice areas. Almost every client uses real estate in some form of their business.” PRACTICE AREA BREAKDOWN FOR THE TOP 30 New York real estate values have boomed, thanks in part to job and population growth. EisnerAmper has taken advantage; the firm has in- Audit and Big 4 Non-Big 4 creased its real estate accounting practice by 40% in the past five years and Tax accounting has enjoyed a 133% rise in real estate-related revenue, up to $35 million. Even though the real estate market in Manhattan has recently cooled, ac- ... while revenue has grown at about the counting firms still have room to benefit. same rate at Big 4 firms and their smaller “I tend to do pretty well in either scenario, good or bad market,” said counterparts. Weissenberg. “Clients are much happier to pay a bill when real estate is 27.7% 39% doing better than worse. But a correction in the market creates opportuni- Growth in revenue per firm ties for the savings we can create. We give advice on cash flow, structuring additional capital raises, and debt restructuring.” +6.7% Even if a tempered real estate climate produces fewer transactions, +6.3% New York deals are always notable for their magnitude. According to the most recent report from CBRE, commercial real estate is selling for $137 per square foot in midtown, a high for the United States. The hefty costs 33.3% put heightened pressure on accounting firms to meet deadlines and find avenues for saving money. “Everything becomes so much more important because of size, and New York has huge transactions, from a dollar perspective,” said Fred Berk, Management advisory services Big 4 Non-Big 4 co-chair of the real estate group at Friedman (No. 19). “If you don’t do the proper planning, it can cost significant dollars.” — GERALD SCHIFMAN SOURCE: Crain’s research and analysis
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P016_P017_P018_CN_20160926.indd 18 9/22/16 7:11 PM ADVERTORIAL SIMONE TAKING BRONX TO NEW HEIGHTS WITH DEBUT OF NEW SOUTH CAMPUS Building upon the success of the Hutchinson Metro Center in the Bronx, Simone Development Companies is embarking on the next chapter of one of the most Plans are in the works to create direct access to the South Campus from the Hutchinson River Parkway successful development stories in the Tri-State region. The new South Campus at life-science research, higher Parkway in the Morris Park Center and Calvary Hospital. The South Campus continues the Hutchinson Metro Center education, technology and section of the Bronx, the South The close proximity to major the momentum of the Hutchinson will be a 33-acre mixed-use health care. It will provide a Campus is convenient to all of health care facilities makes the Metro Center’s 42-acre North campus featuring 1.9 million collaborative environment where the region’s business centers. South Campus an ideal location Campus, which has 1.4 million square feet of Class A office, biotech meets high-tech, where Manhattan is only 20 minutes for the fast-growing biotech and square feet of Class A office retail and hospitality space cutting-edge medicine meets away, as are the city’s major bioscience research firms. and medical space including located adjacent to the 42- PhD science and healthcare bridges and airports. The South “We anticipate a great deal of the region’s largest ambulatory acre, 1.4 million-square-foot programs. Campus is easily accessible interest from biotech companies hospital and a Marriott hotel, Hutchinson Metro Center. Amenities will include a new by car, subway or bus. Coming that are looking for customized the first luxury hotel in the The first development soon will be office and lab space in the New Bronx. Today, the Hutchinson phase of this multiphase “We anticipate a great deal of interest from biotech a new Metro- York Metro area,” said Joseph Metro Center is home to more project, which is scheduled companies that are looking for customized office and North train Simone, President of Simone than 80 businesses, health care to break ground in mid- station adjacent Development Companies. institutions and government 2017, will feature 800,000 lab space in the New York metro area.” to the campus The South Campus will offer agencies employing 8,000 people square feet in two buildings JOSEPH SIMONE, SIMONE DEVELOPMENT with service to the opportunity to create biotech with nearly 6,000 visitors each with up to 100,000-square- Manhattan’s offices and research lab facilities weekday. foot floor plates. The buildings major flag hotel, fitness center, Penn Station and the suburbs designed to suit a wide range of With the development of the will be ready for delivery in 2018. restaurants and retail stores. of Westchester County and tenant requirements with access South Campus, a seamless mix of The second phase comprising The South Campus will have Connecticut. to amenities. Simone’s in-house architectural styles will pull the 1.1 million square feet will feature athletic facilities, such as a The South Campus is also design and construction team two campuses together as one four new ten-story buildings, each baseball diamond, bike paths, less than a mile from some of the will work closely with biotech cohesive 75-acre commercial hub, with 250,000 square feet of space. and a field with stadium seating city’s leading medical institutions, companies to build the lab and unlike anything else in the New The South Campus will be for football, soccer and lacrosse. including the Albert Einstein incubator space they require York metro region. a unique center of innovation With its central location College of Medicine, Montefiore to compete in a demanding “The debut of the South and creativity for biotech/ directly off the Hutchinson River Medical Center, Jacobi Medical environment. Campus is truly a landmark event for the Hutchinson Metro Center, for our company, and for the Bronx. We have had our eye on this site for many years, and it is so gratifying to see this next phase of the development moving forward,” Mr. Simone said. “These are exciting times in the Bronx with new offices, retail centers and hotels rising throughout the borough. We are proud to have played an integral part in the renaissance of the new Bronx,” said Mr. Simone. “With the debut of the South Campus, we are taking the Bronx to new heights. It is an amazing story and the next big chapter is about to unfold.”
For pre-leasing information call 718-518-8600. James MacDonald: [email protected] WWW.SIMDEV.COM Josh Gopan: [email protected] TRANSPORTATION | RUNNING ON EMPTY
FROM DREAM TO DEBT: Sergio Sanchez’s boro-taxi business went bust.
or as long as he could remember, Sergio the airports and Manhattan below 110th Street on Sanchez had wanted to make a name the West Side and 96th Street on the East Side. for himself in business. In June 2013, But after a hot start, things went south. GREEN the young livery-cab driver saw his The first 6,000 permits sold out in months, fueled chance: The Bloomberg administration by visions of them rising in value like taxi medal- Fwas launching its green “boro taxi” program to lions, which went from $10 in the 1930s to more bring street-hail service where yellow cabs seldom than $1 million in 2013. The number of average daily CABS went. Only livery drivers could buy the permits. trips grew quickly, then leveled off as Uber surged. “Right when I think I want to start my own fleet, Now boro taxis are in reverse. Trips have fallen ev- the city of New York is giving out these opportuni- ery month in 2016 compared with those in the prior ties to people like myself,” Sanchez, 26, recalled. “I year, according to the TLC. In July they were down SEE told my dad we should acquire as many as possible.” 14%, to 43,000—a two-year low. Over the next year, Sanchez became the green- Drivers’ euphoria is long gone. The TLC, autho- taxi king. Starting with five permits purchased for rized to sell 18,000 green permits, has sold fewer $2,700—a pittance compared with the $3.5 million or than 300 since June 2015 and 8,285 in all. Startlingly, RED so that five yellow-cab medallions would have cost— 22% have been suspended, revoked or surrendered. he built a fleet of 45 mostly wheelchair-accessible cabs. “We’re trying to hold on,” said Nancy Soria, vice Sergio Sanchez was briefly With just a year of community college, Sanchez president of the advocacy group Green Taxis of New the king of boro taxis. was making his Dominican-immigrant parents proud. York and one of the first green-cab drivers to hit the Unfortunately, he was building an empire at the road. “Who knows what’ll happen in 2019?” Now he is bankrupt, and same time as Uber, which by 2015 had signed up That’s when permits that were just renewed, like the promising experiment to 30,000 New York drivers. Sanchez went from 45 cabs hers, will be up for renewal again. Her fear is that the help fledgling entrepreneurs to zero, running up $150,000 in debt in the process. program will fail if too many owners pull out. He is now preparing a Chapter 7 bankruptcy filing. is in trouble “We weren’t the kings of green,” he said of himself The Uber effect and his father, an auto mechanic who helped maintain By the end of 2015, Uber was averaging more BY MATTHEW FLAMM the vehicles. “We were the kings of loss.” than 45,000 daily trips on green cabs’ turf, to the Sanchez’s tale is one of entrepreneurial daring greens’ 52,000. But following Uber’s fare cut in Jan- combined with youthful ambition and awful timing, uary, its outer-borough ridership spiked more than as well as policymakers’ failure to safeguard his in- 30%. It now has 48,000 New York drivers on its app. vestment. But his reversal of fortune parallels what’s Boro-taxi permit owners, like medallion owners, happening to green taxis generally. A program that feel the city betrayed them by not limiting Uber’s ex- offered local cab drivers the chance to build their own pansion. They argue that they paid for the exclusive businesses appears to be stumbling toward extinction. right to street hails, and e-hails are essentially the Observers cite competition from Uber and the same (an argument that has failed in court). city’s push for more cabs for wheelchair users. “The Some experts say there’s not much the city can lack of a workable wheelchair-accessibility plan, do: Uber is following the rules for black cars. Uber’s predatory growth, and higher permit fees “That opened this loophole we didn’t know was have all contributed to the stunted growth of this a loophole,” said Evan Rawley, a Columbia Business new industry,” said Matthew Daus, a lawyer and for- School professor who studies the taxi industry. “It mer head of the Taxi and Limousine Commission. allowed them to operate pretty much unfettered.” Apple-green boro taxis first rolled out in August Soria first began noticing the difference in Uber’s 2013. The goal was to help outer-borough residents presence outside the 125th Street Metro-North sta- and livery drivers, who for years had illicitly picked tion, where she used to pick up fares every Sunday. up passengers on the spot—a right reserved for yel- “In the past six, seven months, I’ve seen the low cabs—rather than stick to calls from dispatchers. change,” she said. “There will be five available green For $1,500 a permit ($540 for the wheelchair-acces- cabs lined up, and the people getting off are waiting sible version), the drivers could offer metered trips for their Ubers.” Drivers who once grossed $1,500 while still accepting dispatched rides. They just had a week are now taking in $800 to $1,000 working
BUCK ENNIS to avoid pickups in yellow cabs’ exclusive domain: 12-hour days, six days a week, several drivers said.
20 | CRAIN’S NEW YORK BUSINESS | September 26, 2016
P020_P021_CN_20160926.indd 20 9/22/16 8:44 PM They also blamed an increase in illegal street hails. Growth in the green-taxi fleet was likely a factor, too. Uber, which has long claimed that medallions lost value because of taxis’ poor service, is unapologetic. “The green-cab program was established because New Yorkers in the outer boroughs couldn’t get a taxi,” a spokesman said. “Uber, more than any other member of the industry, has transformed that real- ity. Today, in most neighborhoods outside of Man- hattan you can get an Uber within minutes, and as a result, we are growing fastest in the outer boroughs.” The tech giant is now inviting green-cab drivers HOLDING ON: Nancy Soria, a green- onto its basic UberX platform and sweetening the cab driver from the outset, has lost deal with a $1,000 bonus after 20 trips. business to Uber but is resisting the Soria declined, citing Uber’s 25% commission, company’s overtures. plus nearly 9% in sales tax. But others need the fares. “The pay is pretty low, but to be honest, before you drop somebody off, the phone rings for the next one,” said William Garfield, a green cabbie who Bloomberg administration was confident that green- Ecuadorean immigrants invested in Sanchez’s man- turns on the UberX app between rush hours. “You’re cab drivers would thrive because customers would agement company, Green Livery Inc. “We were be- FROM DREAM TO DEBT: making quarters, but you’re bouncing around.” prefer a regulated, metered ride to illegal street hails. lieving in this business.” But soon Sanchez’s drivers Sergio Sanchez’s boro-taxi Some suspect the deal will backfire on green cabs. Ironically, Sanchez said he believed the greens began disappearing, lured away by Uber’s bonuses business went bust. “In the short run, it is mostly going to be accretive,” would put the liveries out of business. He also un- and the chance to drive gas-efficient cars and collect predicted Columbia’s Rawley. “In the long run, Uber derestimated how hard it would be to attract drivers customers anywhere, not just in the outer boroughs will use its market power to extract more profits.” to his accessible green cabs. But he hustled: He put and upper Manhattan. Meanwhile, the de Blasio ad- Uber said it is providing opportunity. Garfield’s up fliers at gas stations and everywhere else drivers ministration was essentially defending Uber’s busi- quarters can turn to dollars during surge pricing. And gathered, and got all his vehicles on the road. ness model in court, arguing that its app-based hails Uber’s referrals expand green cabs’ clientele. “They Increasingly, other accessible green-cab owners did not infringe on taxis’ rights. can tap into customers who might otherwise not try handed Sanchez their keys, which he saw as an op- By this past January, all of Sanchez’s cars had to hail a cab,” Uber’s spokesman said. portunity, but in retrospect was an ominous sign. He been repossessed. To support his wife and young wagered he could break even leasing out their vehi- daughter, he began driving a green accessible cab. Accessible but not desirable cles, then turn a profit once the cars were paid off. In August, Sanchez switched to a yellow cab. Some of the stall in green-cab-permit sales stems With other owners he charged a management fee. “My problem was I kept believing in the business from the price doubling to $3,000, but accessibility is Brothers Victor and Jaime Diaz, yellow-cab driv- too long,” he said. “I felt that as long as I can keep this considered the bigger issue. The 2012 law establishing ers who owned five accessible green cabs apiece, running, eventually the TLC will turn it around.” green cabs mandated that 20% be wheelchair-acces- were desperate by the time they saw Sanchez’s phone Soria, too, continues to hope. “I fought for the sible. To meet its goal, the TLC is now selling permits number on a taxi bumper in fall 2014. program to come true, so how do I give up on it that may be restricted at random to wheelchair- “He finds drivers and he makes deals with driv- now?” she asked. “I’m hoping the ones who hold on accessible cabs. It’s a lottery that no buyer wants to ers,” Victor recalled, explaining the $50,000 the two the longest will be the winners.” n win. Drivers also dislike the minivans, which include Toyota Siennas and the Ford Transit Connect, say- ing they guzzle gas and are uncomfortable to drive. “This is a drivers’ market,” said Cira Angeles, a livery veteran who helped lead the fight for green cabs. “It’s harder to get a driver for a wheelchair-accessible cab, and drivers don’t want to go into lotteries.” It has stuck in the craw of both the yellow- and green-cab industries that Uber, which operates in the TLC’s less-restricted black-car category, has no spe- cific accessibility requirement. Uber does link wheel- chair users via its app to accessible green cabs. A TLC citywide dispatch system for accessible cabs will debut next year, a spokesman said. But that is unlikely to generate many customers for green cabs. Access-A-Ride, which cost the Metropolitan Transportation Authority $461 million last year, is more promising: Greens could provide faster para- transit service at a lower cost than the MTA vans. But Uber looms there, too: It has been bidding on paratransit programs around the country and re cently launched a pilot wheelchair-accessible service in Manhattan. Disability activists who fought for the wheelchair mandates—and have criticized Uber—say accessible green cabs have great potential for paratransit. “They can undersell Access-A-Ride and undersell Medicaid ambulettes,” said James Weisman, chief ex- ecutive of the advocacy group United Spinal Associa- tion. “Somebody is going to steal that business.” Sanchez didn’t anticipate any of the green cabs’ problems in late 2013. He also borrowed $56,000 from Ford Motor Credit, $42,000 from M&T Bank and $64,000 from private lenders to acquire two Tran- sit Connects and three Siennas. He borrowed $16,000 on his uncle’s credit card, maxed out four of his own cards and used $13,000 from his father’s savings. It was a gamble, but at the time, Uber was an obscure newcomer from San Francisco and the
September 26, 2016 | CRAIN’S NEW YORK BUSINESS | 21
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BUCK ENNIS 22 |
CRAIN’S NEWYORKBUSINESS The Next The Next to be a working artist intheBronx—and artist to beaworking growing culturalorganizations.It’s easy New outsiders arebeginning totakeoutsiders note Cheap rent, greattransit, new and BY MIRIAMKREININ SOUCCAR Scene
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S e pt e m ber 26,2016 Art Art
ART
| the BronxMuseumofArts. drawing to biggernumbers of aninstallation, hasbeen HOLLY BLOCK
LAST FRONTIER LAST , sittinginfront 9/22/16 9:40 PM
BUCK ENNIS ART | LAST FRONTIER
ver since Ivan Gaete came to New York in the late 1990s, the multidisciplinary artist from Chile has crisscrossed the city, living everywhere from the Lower East Side to numerous neighborhoods Ein Brooklyn. A couple of years ago, tired of paying $1,200 a month for a tiny apartment in Clinton Hill and commuting to his $450-a-month studio space in Bushwick, Gaete decided to join a small but grow- HOLLY BLOCK, sitting in front ing number of artists living in the Bronx. ere he of an installation, has been was able to land a large one-bedroom apartment in drawing bigger numbers to the Belmont area with enough space to work for less the Bronx Museum of the Arts. than his combined monthly rents in Brooklyn. Now Gaete has established roots in the Bronx’s burgeon- ing arts scene. “It’s becoming hard for artists to be in Brooklyn and Manhattan, and we’re always looking for spaces that are a ordable,” Gaete said. “ e Bronx has got- IVAN GAETE found room ten a lot of attention in the last year.” in the Bronx to work As the sole subway-linked borough that still and live. boasts a ordable rents and an abundance of raw space for studios, the Bronx is emerging as a is especially true in the long-forgotten South Bronx Furman Center reports that the share of college- fast-growing hub for the arts. Artists are moving in neighborhoods. According to the NYU Furman educated residents in the area has grown from 4.8% from around New York City and farther a eld, gal- Center for Real Estate and Urban Policy, rents in the to 9.2% of the population from 2000 to 2014. leries are popping up, and nonpro t arts organiza- Mott Haven/Hunts Point section have risen 33.2% “ e Bronx has always had blight, but that’s - tions are opening or expanding, staging world-class from 2000 to 2014, a dramatic contrast to the 3.9% nally being broken down because of the need for shows that are bringing in more outsiders. decline in the 1990s. new spaces,” said Carey Clark, visual arts director at Like many former artist frontiers around the Jessica Yager, executive director of the Furman Hunts Point nonpro t the Point and a representative city—SoHo, Chelsea, Alphabet City, Bushwick— Center, said the area’s appeal may be its commuter of the Bronx Arts Alliance, a group that launched in the economic impact of the developing Bronx arts accessibility. “Of the city’s 59 community districts, 2012 to bring the borough’s cultural organizations scene can be measured in rising rents and the grow- it has the highest share of residential units located together. “We’re the last frontier in the city.” ing number of residents with college degrees. at within a half-mile of a subway station,” she said. e CONTINUED ON PAGE 24
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At the center of the NUMBERS borough’s creative boom is the Bronx Museum of the Arts, which has a $3.2 million operating budget and is undergo- ing an expansion and 238%GROWTH IN VISITORS at the enjoying record atten- Bronx Museum of the Arts dance. The 45-year-old from 2011 to 2016 museum is in the midst of a $25 million capital campaign that will add exhibition space and create an eye-catching 33.2% glassed-in atrium for INCREASE IN RENT in Mott public programming Haven/Hunts Point from at the corner of the 2000 to 2014 Grand Concourse and East 165th Street. The construction—the first phase of which will be finished by 2020—will cost roughly $15 mil- 92%INCREASE IN PERCENT of lion, with the remainder Mott Haven residents with of the capital campaign college degrees earmarked for the mu- seum’s first-ever endow- ment. At the same time, the Bronx Museum is extend- ing its brand by opening a 4,500-square-foot space at 80 White Street in TriBeCa for graduates of Art- ists in the Marketplace, the museum’s career man- agement program for emerging artists. Donated by General Hardware Co.—a longtime donor to the AIM program—the building will offer five free stu- dios for artists, as well as exhibition and public pro- gramming spaces. “We want to create a synergy between alum- ni of the program and our current artists,” said Holly Block, the museum’s director. “We’re collabo- rating with a number of places downtown that will further expand the museum’s reach, and at the same time looking to offer free studios for artists here in the Bronx.” New and expanding ANNA MATOS opened The physical growth comes as museum attendance a gallery on Bruckner has risen from 30,000 visitors to more than 100,000 Boulevard, confident that visitors in the past five years. Part of those gains stem good art will draw visitors. from a $500,000 grant given by the Rubin Foundation to underwrite admissions, making the museum free. But a hit exhibition of the work of the late Chinese- American painter Martin Wong that opened last robust outreach beyond the borough’s borders. in August. November brought lines around the block, boost- “They haven’t given enough opportunities for The Bronx Museum isn’t the only arts institu- ing attendance figures even further and bringing in Bronx artists and aren’t appropriately reflecting the tion drawing crowds to the borough. The Andrew more visitors than ever before from other boroughs true art of the borough,” said Walter E. Puryear III, Freedman Complex, owned by the Mid-Bronx and other cities altogether. The show was the first director of the Andrew Freedman Complex, a cul- Senior Citizens Council, was turned into a cultur- museum retrospective of Wong’s work since he died tural center across the street from the museum. al center in 2012. Since then it has produced two in 1999 from AIDS-related causes at the age of 53. But remaining trustees on the museum’s board plays (Black Wall Street and The Fall of the Kings), “Downtown is finally recognizing the Bronx as a say Block’s strategy of raising the museum’s profile four concerts and eight art exhibitions. It also runs venue,” said Block. “We’ve worked an artist-in-residency program. really hard at changing people’s at- The center’s opening- night party titudes about the borough.” The per- “DOWNTOWN IS FINALLY RECOGNIZING attracted 4,000 people, and some centage of adult museum visitors of its exhibitions have drawn thou- hailing from outside the Bronx rose THE BRONX AS A VENUE. WE’VE WORKED sands of visitors. from 40.9% in the fiscal year ended The Freedman complex June 2015 to 58% in fiscal 2016. REALLY HARD TO CHANGE PEOPLE’S has yet to receive city fund- That puts the museum more in line ATTITUDES ABOUT THE BOROUGH.” ing and relies instead on with the Brooklyn Museum, 55% of income from renting out space for whose visitors live outside the bor- film shoots to supplement its bud- ough. get. But awareness of its program- The museum’s aggressive growth has led to dis- outside the borough actually strengthens the arts ming is growing among the city’s cultural elite. The agreement among its 28 board members. Four trust- community in the Bronx. day Crain’s interviewed Puryear, Museum of Mod- ees resigned in August to protest a number of ex- “The heightened visibility and stature that these ern Art director Glenn Lowry was coming uptown pensive programs underway to show Cuban art in ambitious international projects bring to the mu- to visit, a major coup for the fledgling organization. the museum. seum are a great benefit to the local community,” “We’re hoping he’ll want to partner with us,” Pur- The trustees who left the Bronx Museum’s board said Joan Krevlin, an architect and longtime board year said.
BUCK ENNIS aren’t the only ones criticizing the art institution’s member who became co-vice chair of the museum The Bronx is dotted with new and growing arts BUCK ENNIS
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BUCK ENNIS Bronx. He works out of Crash’s studio. moved to United the States and up ended inthe from Bristol, England. Alittle over ayear ago, he exhibitiona solo of stencil the artist Nick Walker, showing art.” good either, but are they because peopletime the go all daughter. “Red Hook [Brooklyn] isn’t to easy get to, said Anna Matos, director of WallWorks and Crash’s come people good, will ally no matter where it is,” cause we thought ifyou are showing something re- man graffitiClaudia artist “MadC” soldWalde out. exhibitionsolo featuring works 30new from Ger toclose 200people have attended each opening. A plans to put on 10to 12shows ayear, and far, so is Bronx-based the graffitiartist Crash.gallery The onfocuses graffiti andstreet art; one the of owners on Bruckner Boulevard in January 2015. The gallery with neighborhoodresidents. Bronx, where artists helped spruce sites up local ticipated Laundromat’s inthe fielddaySouth the in communities inNew York City. 18,he OnSept. par nonprofitthat brings togetherartists with different andArts a fellowship at Laundromat the Project, a aresidency at Arts, the Bronx the Museum of the him a 2016 BRIO award from Bronxthe on Council paper constructions and installations have earned ists’ work. Take Gaete, for instance. His drawings, institutionslocal have resourcesthe to support - art say community there is atrue developing, where Congregation of, andfor, artists move there.” Mottthe Haven area,” she said. “It’s rage the all to wick. But sheis this just believes beginning. the compared living with those inareas such as Bush- acknowledges that number the of small artists is still expensive too became and now lives in West Farms, out of Prospect Heights, Brooklyn, years ago it when 200 artist bios and counting. James, was who priced on exhibitions. features directory BX200,the Called ists live who Bronx, inthe along with information lastwho year launched an online of directory - art building inWestchester Square. renovating of hasCouncil been Arts the an old bank lion gut renovation of its building. And Bronx the Center inWest Farms is midst inthe of- a$10mil BronxArtSpace, inMott Haven. The BronxRiver Art cently moved next door to eight-year-oldthe gallery Theater NY,theater a and music organization, re- munity projects, art launched ayear ago. IDStudio Factory,BXArts anonprofitthat promotes com- institutions, commercial both and nonprofit. The TECHNICOLOR DREAMS: the Andrew Freedman Complexby aBrazilianartist The gallery’s show, fall Sept.which 17, is opened “We it took spacebecause this was open and- be inthat area, WallWorks, gallery A new opened owners living andArtists Bronx in the gallery “All Columbia the MFA students are scouting out Keeping track of it is painter the all Laura James, A muralpaintedonawall of n
- -
T GRAFFITI COLLECTORGOESTOMARKET was pleased to get the art intoagallery,was pleasedtogettheart andhe’s planningadditionalshowings. for rangedfrom$600to$3,900, theworks andwhilesalesweren’t especiallystrong, Pacifico saidhe asCESandYES2.Prices fromhisBronxcollectionby graffitiwriters graphs andworks suchnoteworthy marketinggraffiti,”start said Pacifico, Vista whose FoodExchange. of day jobischairman 20 feet ormore, dependingonhowmuchroom youhave for them.)“Ithinkit’s agreatmediumto graphed, thenblownupandetchedontoaluminumpanels.(Someofthephotoscanbeenlargedto isn’t necessarilymanufacturedfor durability, candecay. sotheart harder totake home.Evenif a collectorhasthespacetodisplay agraffiti-covered wall, spray paint toembrace—and even form Butgraffiticanbeahard art toselltheirwork. extraopportunity artists tospray-paint therooftopsandwalls ofhisHuntsPointartists meat-processingfacility. Vinnie thanPacifico,and quitepossiblynopatronmoreenthusiasticfor graffitiart wholastyearhired H In April,inBridgehampton, agallery L.I., hostedtheexhibit“UponRoof,” whichfeatured photo- tosolvebothproblems,In aneffort Pacifico hasbeenhavingphoto- works byhisfavorite artists Like any fan, he’s tohispassionandgivetheborough’s eagertointroduceothers home-grown ERE IS PER HA P S NOA RT FO RM
M O RE SYNONY September 26,2016 M OUS WI T H T H E |
C BR — R AIN’S N AARON ELSTEIN ONX VINNIE PACIFICO rooftop his graffiti-covered E than graffiti, W YO R K B on on USIN E SS |
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The
Revolution
A Small Business Guide to Health Benefits
o stay competitive with larger With open-enrollment season players in their industry, many Tentrepreneurs and executives soon to start, health insurance know they need to prioritize great benefits, from their health plan to and wellness are top of mind vision services and dental. However, they also need to balance that desire for many New York City with the financial realities of running a small business and getting the most small businesses. out of the dollars they invest.
In the section to come, small-business owners and experts offer tips on how to choose the ideal health plan and how to create a great wellness program on a small-business budget. The goal is to help you keep your employees healthy and performing at their peak. “When we’re talking about wellness, we’re talking about prevention,” said oncologist Linda Skoog-Sluman, chief medical officer and co-founder of EngagementHealth, a national provider of employee-health-and- wellness programs that serves clients in the New York metro area.
Taking a proactive approach to keeping employees healthy can go a long way, say experts. With about 75% of all health dollars in the U.S. spent on cardiovascular disease, cancer and diabetes, efforts to prevent these diseases can make a dent in health care expenditures, Skoog-Sluman notes. But it takes a commitment by the employer. “You have to reach every single person in a company and find out what their risk factors are that we can control,” said Skoog-Sluman. That can take some work, but it can also mean a more productive and energetic work force and, if you’re strategic, lower health care costs, as well.
Crain's The Wellness Revolution Adver MECH.indd 1 9/20/16 11:23 AM ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS You want more:
especially important in way to keep costs down, said Poblete. “These Choices. Plans. Networks. an employment market are new plans that insurance companies are like New York City, where developing as a means to lower the premium,” competition for the best she said. “The business owner and employees people is fierce and essentially get a listing of doctors and hospitals in small firms offer health the area that would be less choice—but still a good insurance at a rate higher set of doctors and hospitals.” than the national average to keep pace. In 2015, just Keep your financial commitment in check 29.4% of small U.S. firms Future premiums are not always easy to predict, as with under 50 employees the country adjusts to the impact of the Affordable provided health coverage Care Act. To avoid making a financial commitment to their employees, you can’t afford to keep and disappointing your according to the Kaiser employees, choose a dollar amount you are willing Family Foundation; but to contribute, rather than a percentage of costs, in New York State that advises Tolbert. percentage was 38.2%. “What employers don’t want to do is get it “Providing a team with amazing benefits boosts ingrained in their culture or their people’s minds How to find a great morale around the office,” said Tatum, who also that my employer pays 70% of the cost of this type offers a vision plan, profit-sharing and 30 days of of plan and that’s my health care benefit,” said health benefits plan vacation per year. “We really do the due diligence Tolbert. It is better for them to have the idea, “My on a small-business to find amazing employees. They keep our clients employer gives me $350 a month for my health happy. When we find them and they fit like puzzle care benefits and gives me options to choose how budget pieces into our culture, we have to keep them happy.” to use the money,” said Tolbert. Otherwise, if costs suddenly go up 60%, you will be on the hook for onique Tatum, owner of Beautiful Planning So how can you offer a great health benefits covering a big portion of the increase. Marketing & PR, a boutique PR firm with package on a small-business budget? Here are M12 employees, based in Manhattan, knows some strategies that small-business owners and Help employees’ health care dollars go further how important quality health insurance is on a experts recommend. Both health savings accounts (HSAs) and health personal level. “I have really bad allergies and reimbursement arrangements (HRAs) offer a way asthma,” said Tatum. Shop every year for you to make tax-advantaged contributions to Health care markets have been in flux, as the cover employees’ medical expenses. To make certain that she and her employees can country adjusts to the impact of the Affordable WHO’S MORE see any doctor they need without having to get Care Act. It is important to stay on top of the latest By setting up an H.R.A. and an H.S.A. in tandem, referrals to see specialists, she invests in offering offerings, said Poblete. “I’d recommend using you can contribute on an as-needed basis to a silver-level health plan. That level of coverage an insurance broker,” said Poblete. “They come employees’ accounts, rather than automatically DEMANDING keeps out-of-pocket costs down. “We don’t want with a lot of expertise, and deep knowledge of the doing so. You might, for instance, set up the our team members paying very large co-pays,” market. Their services are very helpful to ensure H.R.A. with a promise to pay the first $1500 of a said Tatum. “We wanted to ensure that if they were the business is finding the best-value plan.” $2000 deductible. If the employee hits the $1500 ever hospitalized, they didn’t pay a tremendous in spending, the money would be automatically THAN YOU? percentage.” Offer a menu of plans provided to the worker so he or she could pay the Trying to find a plan that addresses the health medical bills. To do this, the H.R.A. must be what is To be able to provide high-quality health care needs of employees of a wide range of ages and known as H.S.A. qualified. “Employers are keeping Empire small business amidst rising premiums, Tatum took a close look at life situations can result in buying a pricier plan. the money in their pocket,” said Combs. “If the her business operations. In January, the company Instead of aiming for a one-size-fits-all plan, employee needs it, they will provide it. If you have health plans. raised retainers for its clients to offset some of consider offering a base plan with the option to an employee who only gets an annual checkup, the costs. “We increased them to really be able upgrade, via a payroll deduction. “A lot of our she’s never going to know the deductible exists. Living up to New York’s tough to retain quality employees,” said Tatum. “We had clients are offering multiple options,” said Susan Another woman who has a baby this year will use some legacy clients on our roster who were paying L. Combs, who owns the insurance brokerage firm that care and have that deductible.” standards. And yours. very small retainers. We referred them to smaller Combs & Company in New York City. “If you want providers.” to upgrade, you will pay the difference in a payroll Employers can contribute to standalone H.S.As for deduction.” employees but should bear in mind that these are Whether you’re a law fi rm, ad agency or tech shop, you Offering health insurance to employees can be a a portable benefit—meaning that if the employee didn’t get where you are by being a pushover. At Empire, substantial investment for a small company, as How many options should you offer? At least four, leaves the company, so does the account. “If an we’ve enhanced what we offer to give you more of what New York City owners like Tatum have discovered, says Alex Tolbert, CEO and founder of Bernard employer sets up an H.S.A. and says, `We’re going you really want. and paying for it can require owners to find Health, provider of an HR software platform, to fund the deductible,’ and the employee leaves, the creative ways to stretch their budget. “The single as well as advisory and brokerage services to employee will walk out the door with it,” Combs said. Like a large network — with access to hospitals and more most important topic on the small business companies across the country, including New York doctors across the country.1 And, of course, the demand owner’s mind is one of affordability,” said Sally City. Some carriers will allow a small employer to Make some options voluntary of every small business: more plan choices and smart Poblete, CEO of Wellthie, a New York City-based offer up to 10 plans, Tolbert said, so make sure you While some people on your team may want dental, pricing options. health care technology company that offers inquire about what the possibilities are. vision or life insurance plans, others may not. a shopping platform to insurance companies Offering these as voluntary benefits through a Demand more from your health plan. and brokers that helps insurance seekers find When you choose the plans, look for them to be payroll deduction is becoming a popular option Call your broker or go to empireblue.com. affordable health-insurance options for small as different as possible, Tolbert advises, and make among small companies so the employees can take businesses and individuals. sure to include one high-deductible, H.S.A. eligible advantage of group rates, said Combs. Whether plan, for those who want to keep health care everyone opts in or just a few employees do, As many local firms have found, investing in good premiums down. “Your employees are going to offering some choices can go a long way toward health benefits can pay off many times over in a end up all over the map,” said Tolbert. keeping your team happy with your benefits. That company that wants to retain its existing employees matters if, like Tatum, your attitude is, “I’m not 1 Blue Cross and Blue Shield Association PPO/EPO network comparison data from websites of other and vie for talent against bigger firms. That is Offering a plan with a narrow network is another letting them get poached by anyone.” national carriers as of 2016. Network data include the BlueCard program’s extensive networks of doctors, hospitals and other providers that participate in independent Blue Cross and Blue Shield plans across the country. Services provided by Empire HealthChoice HMO, Inc. and/or Empire HealthChoice Assurance, Inc., licensees of the Blue Cross and Blue Shield Association, an association of independent Blue Cross and Blue Shield plans.
Crain's The Wellness Revolution Adver MECH.indd 2 9/20/16 11:23 AM 3528_Empire_SG_Launch_Crains_NY_FullPg_Ad_Woman_R1_080116.indd 1 8/25/16 5:37 PM You want more: Choices. Plans. Networks.
WHO’S MORE DEMANDING THAN YOU? Empire small business health plans. Living up to New York’s tough standards. And yours.
Whether you’re a law fi rm, ad agency or tech shop, you didn’t get where you are by being a pushover. At Empire, we’ve enhanced what we offer to give you more of what you really want. Like a large network — with access to hospitals and more doctors across the country.1 And, of course, the demand of every small business: more plan choices and smart pricing options. Demand more from your health plan. Call your broker or go to empireblue.com.
1 Blue Cross and Blue Shield Association PPO/EPO network comparison data from websites of other national carriers as of 2016. Network data include the BlueCard program’s extensive networks of doctors, hospitals and other providers that participate in independent Blue Cross and Blue Shield plans across the country. Services provided by Empire HealthChoice HMO, Inc. and/or Empire HealthChoice Assurance, Inc., licensees of the Blue Cross and Blue Shield Association, an association of independent Blue Cross and Blue Shield plans.
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Bloomberg School of Public Health and vice Consider gym reimbursements THE BENEFITS OF president at Truven Health Analytics. Ask if your health insurance plan offers reimbursements for gym membership fees—an Use a multi-pronged approach increasingly common add-on. “That’s a benefit I’ve BEING DEMANDING. There are two ways to think about wellness—as seen people want,” said Susan L. Combs, who owns a way to promote health and a way to prevent the insurance brokerage firm Combs & Company disease, says Goetzel. “The health promotion side in New York City. If someone goes to the gym says if I take care of myself physically, mentally, 50 or 100 times in a six-month period, the carrier Empire small business health plans. and socially, I’m going to be happier, have more may give them $200. More network doctors than anyone. energy, be more focused, and feel better about my job and my employer. That’s the plus side of Keep in mind that while gym reimbursements wellness. The flip side focuses on illnesses I want tend to be popular among those who already have To make it as a small business in New York, you have to be to avoid. To do that, I eat healthy food, exercise a membership at a fitness center, these benefits unwilling to settle. It’s the same with health plans. At Empire, we regularly, do not smoke, get enough sleep, get don’t necessarily spur the inactive to sign up, give you access to more of New York MagazineÕs Top Doctors — recommended preventative screenings and noted De La Torre. For those employees who may 1 achieve a work-life balance.” The best programs need more inspiration, consider starting a walking 17 years in a row. Plus Empire has one of the largest networks combine both views of workplace wellness, said club. “It’s an organizational mechanism for people with more access to hospitals and more doctors across the How small employers 2 Goetzel. to have a little bit of peer pressure to do some country. can put their own spin exercise,” said De La Torre. on wellness programs What if you can only prioritize one aspect of We also have something all savvy business owners want: more wellness because of a tight budget? “If you want Offer help navigating the system plan choices and smart pricing options. So, if you demand more ike many small companies, Herald Strategies, to pin me to the wall and say, `What should you If an employee develops a serious medical problem from the people you do business with, talk to Empire today. a five-employee public relations firm in do?’ the obvious thing is to provide resources to or has a family member who does, finding the LBrooklyn, doesn’t have a huge budget to smokers who want to quit smoking,” said Goetzel. right doctors and coordinating care can cut into Demand more from your health plan. spend on a wellness program. But founder and CEO “Smoking is the biggest killer in this country. After time spent working. New services are emerging to Call your broker or go to empireblue.com. Warren H. Cohn has managed to bake good health that, promoting more physical activity and healthy provide professional assistance. into its culture by taking a creative approach. eating are important goals.” One such option, Kaigo, is free to companies To make sure Herald’s team has healthy dining If your team doesn’t include smokers, ask your with 50 employees or less and costs $3 to $8 a options, the company buys a healthy lunch for its employees what wellness initiative would help month for larger firms. Kaigo, a company based staff every day. Employees take walks together to them most, advise experts. “A survey is a great in New York City, connects patients with personal a local park to stay moving and get half days off place to start,” said Stacey Anger, director of sales, care assistants who help them build a care team on Fridays so they have more time to recharge. wellness and biometrics at Health Advocate, a among participating physicians in its network, and And once a week, the team holds a meeting to talk health care advocacy and assistance program provides businesses with educational programs about what is making them love their work and based in the Philadelphia area. Health Advocate run by health professionals, such as dieticians. In to discuss any challenges they are having. “It’s offers small business The Perfect Fit Wellness the New York City area, Kaigo has partnerships almost like having a therapy session for an hour,” Program, which includes customizable features with Mt. Sinai and Tribeca Pediatrics and is said Michael Kosowski, director. such as telephonic coaching, activity trackers, available in Brooklyn, Manhattan and Queens. fitness challenges and competitions, and online Heritage’s approach has paid off with positive education. Kaigo co-founder and CEO, Uzochukwu Chima, morale. “Our whole outlook and attitude is we work notes that often when people leave the hospital, hard and play hard,” said Cohn. “We’re more like a “A lot of groups will send out a general survey it is hard for them to get in touch with the doctors family.” about what activities they would like to see who treated them. “Of course you still need to sponsored,” said Anger. Questions may range from ask them questions,” he said. “If you don’t have a As many small companies are realizing, creating whether employees want a health-risk assessment dedicated doctor that has time to call in on your a wellness program can be a smart investment in to whether they want to use a technology-based behalf, it falls on the family.” Kaigo’s personal care building a healthy, happy team and, in some cases, program. assistants are trained to do the calling. “What contribute to lower health care costs. That is one that means for the employee is more time spent reason they are growing in popularity. Seventy-two Change your work environment focusing on work as opposed to taking time away percent of companies now offer wellness benefits, Some of the biggest contributions an employer from work to navigate health care decisions.” said according to The Society of Human Resource can make to employees’ well-being are free. Chima. “It means better wellness.” Management’s 2016 Benefits Survey, and 45% For example, giving employees freedom to get said they had expanded existing programs. up and move around won’t cost the company Spread the word anything, but will have a big impact on their In its annual survey of employees and employees, Here is how to offer a great wellness program on a health, said Hector De La Torre, executive director the Transamerica Center for Health Studies tight budget. of the Transamerica Center for Health Studies, asked respondents if their company provides a nonprofit focused on helping consumers and a workplace wellness program. About 61% of Take stock businesses navigate the health care landscape. employers said they had one, compared to only The Centers for Disease control publishes a 45% of employees. “Clearly there’s a disconnect,” Worksite Health Scorecard (http://www.cdc. “It requires a little bit of flexibility throughout said De La Torre. gov/dhdsp/pubs/docs/HSC_Manual.pdf) that the day,” said De La Torre. “It requires you to companies can use to assess where they stand understand that your employees might be going Make sure your employees know about what when it comes to wellness. If you find your out for a brisk 15-minute walk as a break a few benefits you are providing by including them in business has room for improvement, it has ideas times a day.” discussions about it, he advises. “A workplace for programs, policies and environmental supports wellness program can’t be top down,” said De for a healthy lifestyle that companies can adopt. Another tweak you can make to your environment La Torre. “You have to have buy-in from your “Businesses can go down the scorecard and say, that won’t add to your spending is to remove junk employees. The way you do that is by including `Out of these 100-plus things I can do to improve food from vending machines. “For celebrations, them in the planning.” After all, if you’re my workers’ health, here are 4 or 5 things I can don’t bring in pizza and donuts,” said De La determined to squeeze in an extra walk every day, do tomorrow that are pretty easy,” said Ron Z. Torre. Ask your employees to suggest healthy it’ll be a lot more fun if you have some company.” 1 Based on New York Magazine’s 2016 “Best Doctors” issue refl ecting data from Castle Connolly Medical Ltd.’s annual database. Goetzel, senior scientist at the Johns Hopkins alternatives. 2 Blue Cross and Blue Shield Association PPO/EPO network comparison data from websites of other national You want more: carriers as of 2016. Network data include the BlueCard program’s extensive networks of doctors, hospitals and other providers that participate in independent Blue Cross and Blue Shield plans across the country. Choices. Plans. Networks. Services provided by Empire HealthChoice HMO, Inc. and/or Empire HealthChoice Assurance, Inc., licensees of the Blue Cross and Blue Shield Association, an association of independent Blue Cross and Blue Shield plans.
Crain's The Wellness Revolution Adver MECH.indd 4 9/20/16 11:23 AM 3528_Empire_SG_Launch_Crains_NY_FullPg_Ad_Man_Headphones_R1_080116.indd 1 8/25/16 5:43 PM THE BENEFITS OF BEING DEMANDING. Empire small business health plans. More network doctors than anyone.
To make it as a small business in New York, you have to be unwilling to settle. It’s the same with health plans. At Empire, we give you access to more of New York MagazineÕs Top Doctors — 17 years in a row.1 Plus Empire has one of the largest networks with more access to hospitals and more doctors across the country.2 We also have something all savvy business owners want: more plan choices and smart pricing options. So, if you demand more from the people you do business with, talk to Empire today. Demand more from your health plan. Call your broker or go to empireblue.com.
1 Based on New York Magazine’s 2016 “Best Doctors” issue refl ecting data from Castle Connolly Medical Ltd.’s annual database. 2 Blue Cross and Blue Shield Association PPO/EPO network comparison data from websites of other national You want more: carriers as of 2016. Network data include the BlueCard program’s extensive networks of doctors, hospitals and other providers that participate in independent Blue Cross and Blue Shield plans across the country. Choices. Plans. Networks. Services provided by Empire HealthChoice HMO, Inc. and/or Empire HealthChoice Assurance, Inc., licensees of the Blue Cross and Blue Shield Association, an association of independent Blue Cross and Blue Shield plans.
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NY Sec. of State desig- nated agent of LLC upon whom process Notice of Qualification of SAGEWIND Notice of Qual. of Alloy Asset Manage- against it may be served and shall mail CAPITAL LLCAppl. for Auth. filed with 7UDGHU process to: CT Corporation System, ment LLC, Auth. filed Sec’y of State Secy. of State of NY (SSNY) on (SSNY) 4/8/16. Off. loc: NY Co. LLC org. &LWDGHO//&1HZ 32 | CRAIN’S NEW YORK BUSINESS | SEPTEMBER 26, 2016 TO PLACE A CLASSIFIED AD, CALL 1 800 444 6007 OR VISIT CRAINSNEWYORK.COM PUBLIC & LEGAL NOTICES SPK/LEWIS CONSTRUCTION, LLC filed EPITOME MIND FRAME, LLC, Arts. of Notice of Qualification of North Notice of Formation of Amyar Holdings Arts. of Org. with the Sect’y of State of Org. filed with the SSNY on Stardust LLC. Authority filed with NY LLC, Art. of Org. filed with Sec’y of NY (SSNY) on 6/15/2016. Office locat- 08/08/2016, Effective date of Dept. of State on 9/1/16. Office loca- State (SSNY) on 7/26/16. Office loca- ed in NY County. SSNY has been desig- 09/01/2016. Office loc: NY County. tion: NY County. Princ. bus. addr.: 40 tion: NY County. SSNY designated as nated as agent of the LLC upon whom SSNY has been designated as agent E. Main St., Newark, DE 19711. LLC agent of LLC upon whom process process against it may be served. upon whom process against the LLC formed in DE on 4/28/14. NY Sec. of against it may be served. SSNY shall SSNY shall mail process to: c/o Ochs may be served. SSNY shall mail proc- State designated agent of LLC upon mail copy of process to GFI Capital Re- & Goldberg, LLP, 60 E. 42nd St., ess to: Corporate Filings of NY, 90 whom process against it may be served sources, 140 Broadway, 41st Fl., NY, #4600, NY NY 10165. Purpose: any State St., Ste 700, Office 40, Albany, and shall mail process to: c/o CT Cor- NY 10005. Purpose: any lawful activi- lawful act. NY 12207. Purpose: Any Lawful Pur- poration System, 111 8th Ave., NY, NY ties. pose. 10011, regd. agent upon whom proc- ess may be served. DE addr. of LLC: Notice of Formation of HARLEM Notice of Qual. of AFIAA 125 West 25th Spin City Laundromat, LLC Arts of Org The Corporation Trust Co., 1209 Or- MUSIKA LLC Arts. of Org. filed with Street, LLC, Auth. filed Sec’y of State filed with NY Sec of State (SSNY) on ange St., Wilmington, DE 19801. Cert. Secy. of State of NY (SSNY) on (SSNY) 8/26/16. Off. loc: NY Co. LLC 8/1/16. Office: New York County. of Form. filed with DE Sec. of State, 09/02/16. Office location: NY County. org. in DE 8/23/16. SSNY desig. as SSNY designated as agent of LLC upon 401 Federal St., Dover, DE 19901. Pur- Princ. office of LLC: 547 W. 149th St., agent of LLC upon whom proc. against whom process may be served. SSNY pose: all lawful purposes. NY, NY 10031. SSNY designated as it may be served. SSNY shall mail copy shall mail process to: 180 Ave B, NY, agent of LLC upon whom process of proc. to NRAI, 111 Eighth Ave., NY, NY 10009. General Purposes. against it may be served. SSNY shall Notice of Formation of VertiPark, LLC. NY 10011, the Reg. Agt. upon whom mail process to Friedberg Pinkas PLLC, Arts. of Org. filed with Secy. of State of proc. may be served. DE off. addr.: 160 767 Third Ave., 31st Fl., NY, NY Notice of Formation of big woof, LLC. NY (SSNY) on 8/26/16. Office loca- Greentree Dr., Ste. 101, Dover, DE 10017, regd. agent upon whom and at Arts. of Org. filed with NY Dept. of State tion: NY County. SSNY designated as 19904. Cert. of Form. on file: SSDE, which process may be served. Purpose: on 5/10/16. Office location: NY County. agent of LLC upon whom process Townsend Bldg., Dover, DE 19901. Any lawful activity Princ. bus. addr.: 31 E. 12th St., Apt. against it may be served. SSNY shall Purp: any lawful activities. 10A, NY, NY 10003. Sec. of State desig- mail process to: 415 W. 45th St., NY, 1DPHRI//& %5/,QYHVWLPHQWRV86$ nated agent of LLC upon whom process NY 10036. Purpose: any lawful activity. //&$UWVRI2UJILOHGZLWK1<'HSW against it may be served and shall mail Notice of Formation of York Distressed RI6WDWH 2IILFHORF 1<&R process to: Bennett I. Weiner, Esq., 25 Notice of Qualification of The Ticket Ex- Asset Holdings, LLC. Arts. of Org. filed 6HFRI6WDWHGHVLJQDWHGDJHQWRI//& W. 43rd St., Ste. 920, NY, NY 10036. perience LLC. Authority filed with NY with NY Dept. of State on 8/23/16. Of- XSRQZKRPSURFHVVDJDLQVWLWPD\ Purpose: any lawful activity. Dept. of State on 7/28/16. Office loca- fice location: NY County. Sec. of State EHVHUYHGDQGVKDOOPDLOSURFHVVWR tion: NY County. LLC formed in TX on designated agent of LLC upon whom process against it may be served and %XVLQHVV)LOLQJV,QF:ROI5G6WH CIMB ASSOCIATES LLC Articles of Org. 9/23/09. NY Sec. of State designated shall mail process to: c/o York Dis- $OEDQ\1<UHJGDJWXSRQ filed NY Sec. of State (SSNY) agent of LLC upon whom process tressed Asset Holdings, LLC, 767 Fifth ZKRPSURFHVVPD\EHVHUYHG3XUSRVH 7/13/2016. Office in NY Co. SSNY against it may be served and shall mail Ave., 17th Fl., NY, NY 10153, principal DQ\ODZIXODFW desig. agent of LLC upon process may be process to: CT Corporation System, business address. Purpose: all lawful served. SSNY shall mail copy of process 111 8th Ave., NY, NY 10011, regd. agent upon whom process may be purposes. S&L IT CONSULTANTS LLC, Arts. of to 305 E. 85th St., Apt 5A, NY, NY served. TX and principal business ad- Org. filed with the SSNY on 10028, which is also the principal busi- dress: 3311 W. Alabama, Ste. 200, 09/13/2016. Office loc: NY County. ness loc. Purpose: Any lawful purpose. Houston, TX 77098. Cert. of Form. filed Notice of Qual. of Axonic Credit Opportu- SSNY has been designated as agent with TX Sec. of State, 1019 Brazos, nities Trading, L.P., Auth. filed Sec’y of upon whom process against the LLC Notice of Formation of CHALKIN’ SO- Austin, TX 78701. Purpose: all lawful State (SSNY) 4/27/16. Off. loc: NY Co. may be served. SSNY shall mail proc- CIAL, LLC Arts. of Org. filed with Secy. purposes. LP org. in DE 4/26/16. SSNY desig. as ess to: The LLC, 115 E 57th St, 11th of State of NY (SSNY) on 07/20/16. Of- agent of LP upon whom proc. against it Fl, NY, NY 10022. Reg Agent: Stylianos fice location: NY County. SSNY desig- may be served. SSNY shall mail copy of Ioannidis, 115 E 57th St, 11th Fl, NY, nated as agent of LLC upon whom proc- Notice of Qual. of Anandar 4M, LLC, proc. to Att: Clayton DeGiacinto, 390 NY 10022. Purpose: Any Lawful Pur- ess against it may be served. SSNY Auth. filed Sec’y of State (SSNY) Park Ave., NY, NY 10022. DE off. addr.: pose. shall mail process to David 3/17/16. Off. loc: NY Co. LLC org. in DE CSC, 2711 Centerville Rd., Wilmington, Schoonmaker, 428 Broadway, 4th Fl., 11/25/14. SSNY desig. as agent of LLC DE 19808. Cert. of LP on file: SSDE, Notice of Formation of FRESH SPACE NY, CA 10013. Purpose: Any lawful ac- upon whom proc. against it may be Townsend Bldg., Dover, DE 19901. OF BRYANT PARK LLC tivity. served. SSNY shall mail copy of proc. to Name/addr. of each gen. ptr. avail. at Arts. of Org. filed with Secy. of State of Att: Minn Htoo, 800 Third Ave., NY, NY SSNY. Purp: any lawful activities. NY (SSNY) on 08/03/16. Office loca- SOSA USA LLC, Arts. of Org. filed with 10022. DE off. addr.: CSC, 2711 tion: NY County. SSNY designated as the SSNY on 05/12/2016. Office loc: Centerville Rd., Wilmington, DE 19808. agent of LLC upon whom process NY County. SSNY has been designated Cert. of Form. on file: SSDE, Townsend Notice of Formation of MOUNT SINAI against it may be served. SSNY shall as agent upon whom process against Bldg., Dover, DE 19901. Purp: any lawful HEALTH NETWORK, LLC Arts. of Org. filed mail process to c/o Corporation Serv- the LLC may be served. SSNY shall activities. with Secy. of State of NY (SSNY) on ice Co., 80 State St., Albany, NY mail process to: The LLC, Attn: Roy 09/01/16. Office location: NY County. Princ. office of LLC: c/o Mount Sinai 12207. Purpose: Any lawful activity. Oron, 117 Seventh Ave, NY, NY 10011. Notice of Formation Purpose: Any Lawful Purpose. Health System, Inc., Attn: Legal Dept., F.Words Gear LLC Arts. of Org. filed One Gustave L. Levy Pl., Box 1099, NY, Notice of Qualification of HARLAN SPE- w/SSNY on 7/29/16 Off. in NY Co. NY 10029. SSNY designated as agent of CIAL OPPORTUNITIES FUND III LP Notice is hereby given that license SSNY desig. as agt. of LLC whom proc- LLC upon whom process against it may Appl. for Auth. filed with Secy. of State #1297077 has been applied by the un- ess may be served. SSNY shall mail be served. SSNY shall mail process to of NY (SSNY) on 08/05/16. Office loca- dersigned to sell beer, wine and liquor process to Accumera LLC, 911 Central the LLC at the addr. of its princ. office. tion: NY County. LP formed in Delaware under the alcoholic beverage control Ave, #101, Albany, NY 12206. The reg. Purpose: Any lawful activity (DE) on 06/24/16. SSNY designated law at 244 3rd Ave., New York, NY agent is: Accumera at same address. as agent of LP upon whom process 10010 for on-premises consumption. Purpose: all lawful activities. against it may be served. SSNY shall Barfly NYC, Inc. d/b/a Barfly. Notice of Formation of Renarde, LLC, mail process to Joshua D. Harlan, c/o Notice of Formation of SF Capital Part- a domestic limited liability company. Harlan Capital (GP) III LLC, 150 E. 58th NOTICE OF FORMATION of Big Tie Con- ners LLC. Arts. of Org. filed with NY Articles of Organization were filed with St., 38th Fl., NY, NY 10155. Name and struction LLC. Arts of Org filed with Dept. of State on 6/24/16. Office loca- the Secretary of State of New York addr. of each general partner are availa- Secy. of State of NY (SSNY) on tion: NY County. Sec. of State designat- (SSNY) on 06/14/16. NY Office loca- ble from SSNY. DE addr. of LP: Corpora- 7/28/2016. Office location: NY Coun- ed agent of LLC upon whom process tion: New York County. SSNY is desig- tion Service Co., 2711 Centerville Rd., ty. SSNY designated agent upon whom against it may be served and shall mail nated as agent upon whom process Ste. 400, Wilmington, DE 19808. Cert. process may be served and shall mail process to the principal business ad- against the LLC may be served. SSNY of LP filed with Secy. of State of DE, copy of process against LLC to princi- dress: 140 W. 86th St., 10B, NY, NY shall mail a copy of process to the LLC Div. of Corps., John G. Townsend Bldg., pal business address: 600 10th Ave 10024, Attn: Stefano Farsura, regd. at 122 East 82nd Street, Suite 1B, New 401 Federal St., Ste. 4, Dover, DE Apt. 1RS, NY, NY 10036. Purpose: any agent upon whom process may be York, NY 10028. Purpose: For any 19901. Purpose: Any lawful activity. lawful act. served. Purpose: all lawful purposes. lawful purpose. WANT TO GET YOUR COMPANY IN FRONT OF 250,000 INFLUENTIAL BUSINESS PROFESSIONALS? Contact Joanne Barbieri at 212-210-0189 for classified advertising opportunities. SEPTEMBER 26, 2016 | CRAIN’S NEW YORK BUSINESS | 33 To place your listing, visit crainsnewyork.com/execmoves ACCOUNTING LAW NONPROFIT PROFESSIONAL SERVICES WeiserMazars Blank Rome LLP YMCA of Greater New York Talent Inc. Doug Barry has joined Ira Herman has joined Kathryn Glass joined Hillary Garris, 38, WeiserMazars as a as a Partner in the YMCA of Greater joined Talent Inc. Principal in its Health Finance, Restruc- New York as Senior as Vice President of Care Consulting turing, and Banrupt- Vice President, Chief Finance, where she Group. Doug has cy group. He was Marketing & Com- is responsible for more than 35 years of previously a Parter at munications Officer. developing the experience providing Thompson & Knight She was formerly company’s finan- hospitals and health LLP. He regularly Vice President of cial-management care systems with valued strategic advises lenders and other clients Marketing and Public strategy and execution, and financial advice in the revenue on the management of bankruptcy Engagement at Brooklyn Botanic with a focus on accelerated-growth cycle area. His expertise lies in rev- risk in their transactions; indenture Garden. Glass will work to further initiatives. She is based in the com- enue cycle, health information and trustees regarding defaulted public strengthen the Y brand through in- pany’s New York City headquarters. health operations management. debt issues; and lenders regarding novative integrated marketing and She was formerly Vice President, restructuring and bankruptcy, in- communications strategies. Finance & Operations at Piano. cluding distressed M&A transactions AEROSPACE & DEFENSE and inter-creditor issues. YMCA of Greater New York Ernst & Young LLP L-3 COMMUNICATIONS Natalie Norton joined Blank Rome LLP Rich Jeanneret was Ann Davidson joined YMCA of Greater Samuel Levy 51, joined promoted to Vice L-3 Communica- New York as Exec- Blank Rome LLP as a utive Vice President Chair - Northeast tions as Senior Vice Partner in the Corpo- and Chief Operating Region Manag- President, General rate Litigation group. Officer. She was ing Partner. He Counsel and Corpo- He was formerly formerly President & previously held the rate Secretary. She Partner at Wuersch & CEO at Association position of Americas was formerly Senior Gering LLP. Mr. Levy of YMCA Profession- Vice Chair of Trans- Vice President, Chief focuses his practice als. Norton will work to enhance action Advisory Services (TAS). Legal Officer and Corporate Secretary on all aspects of general commercial service to key constituents, enrich In this role he will lead more than 8,000 professionals across all EY’s at Exelis Inc. and business litigation. Additional- and grow the Y’s many successful ly, Mr. Levy has extensive experi- programs and continue the pursuit business lines in Assurance, Tax, ence in the luxury retail space. of operational excellence. Advisory and Tra in New York, he will continue to serve as a mem- EDUCATION ber of the EY Americas Operating Executive and Ernst & Young LLP’s Léman Manhattan Preparatory School Dunnington, Bartholow & Miller LLP PROFESSIONAL SERVICES Executive Board. Maria Castelluccio Nicola Tegoni, 37, joined Dunning- joined Léman ton, Bartholow Guidepost Solutions LLC & Miller LLP as Manhattan Prepara- Daniel Burstein, 38, Partner in the firm’s REAL ESTATE tory School as Head joined Guidepost immigration prac- of School. She was Solutions LLC as tice group. He was formerly Head of Senior Managing DDG formerly Owner in School at Marymount Director. He was solo practice at Law Matt Conti, 33, joined Rome Internation- formerly Executive Offices of Nicola DDG as Vice Presi- al School. She is Deputy Superin- Tegoni. His practice dent. He was former- tasked with overseeing the strategic tendent and Acting is exclusive to U.S. Immigration ly Vice President at direction of Léman and its academic Chief of Staff at New Law. Mr. Tegoni represents and program across Early Childhood York State Department of Finan- Ares Management counsels corporations and individ- through 12th grade, including day cial Services. He will oversee the LLC. He will lead ual clients in business immigration, and boarding students. Financial Institutions practice for DDG’s acquisi- family immigration, citizenship, Guidepost Solutions and will work tion efforts across removal defense, federal court liti- closely with clients focusing in the western United States while gation, and asylum. FINANCE the areas of regulatory investiga- expanding the company’s existing tions and enforcement, regulatory debt and equity relationships. compliance, litigation support, and Dime Community Bank NONPROFIT internal investigations. William Brown joined Dime Community YMCA of Greater New York Hunt Mortgage Group Bank as Executive BDO USA, LLP Elizabeth Bergin joined YMCA of James Flynn, 39, Vice President & Greater New York as Senior Vice Demetrios Frangiskatos was promoted to Chief Retail Officer. President, Research, Evaluation was promoted to President. He will He was formerly and Strategy. She was formerly New York Office continue to hold the Head of Network, Research & Analytics at New York– Managing Partner for position of Executive Commercial Assur- Managing Director. Retail Banking and Presbyterian Hospital. Bergin will ance. He previously He will also retain Wealth Management at HSBC. bring greater rigor to the collection, analysis and reporting of data. held the position of his role as Chief Partner. In this role, Investment Officer of Mr. Frangiskatos Hunt Mortgage Group. Previously he HEALTHCARE will be responsible for overseeing served as a portfolio manager for the YMCA of Greater New York the development of professionals, firm’s commercial mortgage REIT, ContextMedia Joseph Chan joined managing client and prospective raised public equity capital, and client relationships as well as quality served in several critical advisory Madan Nagaldinne YMCA of Greater and regulatory matters in the firm’s roles for the firm’s CMBS and high- joined ContextMedia New York as Senior New York office. yield debt funds. as Chief People Offi- Vice President, Real cer. He was formerly Estate & Property Head of HR at Face- Management. He was book NYC. He will be formerly Executive leading ContextMe- Vice President, Real dia’s People Strategy, Estate and Public/Private Part- EXECUTIVE MOVES Talent Acquisition, nerships at Empire State Develop- One flat fee: print and online Compensation & Benefits, Learning ment. Chan will be responsible for & Development as well as People developing a real estate strategy for To submit your listing , visit Operations in its New York City and facility expansion, replacement and www.crainsnewyork.com/execmoves Chicago offices. reinvestment. 34 | CRAIN’S NEW YORK BUSINESS | SEPTEMBER 26, 2016 P034_CN_20160926.indd 34 9/22/2016 11:24:27 AM CRAIN’S Wednesday, October 19, 2016 New York Marriott Downtown 85 West Street Entertainment 8:00 a.m. – 8:30 a.m. Registration and Networking Breakfast Summit 8:30 a.m. – 10:30 a.m. Program Cost to Attend: $179 for individual ticket(s) Preparing for the Next Stage $1,790 for table(s) of 10 Opening Keynote: SENATOR $2,650 for a table of 10 and CHRISTOPHER J. DODD event journal ad Chairman & CEO, Motion You must be pre-registered to attend this event. No refunds permitted. Picture Association of For more event information: America, Inc. Ashlee Schuppius Panel Discussion: 212-210-0739 [email protected] For sponsorship opportunities: Irene Bar-Am 212-210-0133 [email protected] SCOTT LEVY JULIE MENIN CLYDE PHILLIPS ALAN SUNA BEAU WILLIMON Founder & President Commissioner, Mayor’s Showrunner, Dexter, Chief Executive Offi cer Creator Eastern Effects, Inc. Offi ce of Media Feed the Beast and Silvercup Studios House of Cards REGISTER TO DAY and Entertainment Nurse Jackie » « crainsnewyork.com/events-entertainment2016 Platinum Sponsor: Tuesday, October 25, 2016 CRAIN’S Sheraton New York Times Square 811 Seventh Avenue Family Business Summit 8:00 a.m. – 8:30 a.m. Registration & Networking Breakfast 8:30 a.m. – 12:00 p.m. Program Because Business is Personal Cost to Attend*: Join Crain’s as we explore how New York family-owned businesses $300 for individual ticket(s) $3,000 for table(s) of 10 have managed to survive in the city while growing their businesses $3,850 for a table of 10 and event journal ad through the generations. *If your company is a family-owned and operated business, contact [email protected] to receive a promo Plenary: Dynamic duos code to register at a reduced ticket rate. You must be pre-registered to attend this event. No refunds permitted. Harvey Moscot, Fourth Generation, CEO, MOSCOT Zack Moscot, Chief Designer, MOSCOT For more event information: Ashlee Schuppius Michael Rudin, Vice President, Rudin Management Company, Inc. Samantha Rudin, Vice President, Rudin Management Company, Inc. 212-210-0739 [email protected] Kenneth Woods, CEO and Owner, Sylvia’s Tren’ness Woods-Black, V.P. of Communications, Sylvia’s For sponsorship opportunities: Irene Bar-Am Panel Discussion: Panel Discussion: 212-210-0133 Keeping it in the family A view from outside the family [email protected] Dana Mondella Bentz, President & CEO, Mitchell Modell, CEO, Modell’s Sporting Goods Dell’s Maraschino Cherries Michael Muzyk, President, Baldor Specialty Foods, Inc. REGISTER TODAY Jessica Johnson-Cope, President, Johnson Security Hal Rosenbluth, President/CEO, Kaufman Astoria Studios crainsnewyork.com/events-family2016 Andrew Rosenwach, Owner/Manager, Timur Yumusaklar, President & CEO, F. Schumacher & Co. Rosenwach Group Stuart Zaro, Owner, Zaro’s Family Bakery GOTHAM GIGS HINDSIGHT: Even after 20 years, Danelle Simonelli still gets a thrill helping others BY LANCE PIERCE discover their past. Liberty’s leading lady A park ranger at the Statue of Liberty and Ellis Island discovers her own family’s history s a ranger with the National Park Service, Ellis Island from Italy in 1920. They were in their early 20s Danelle Simonelli sports a uniform five days and expecting their first child. “I learned more about my DANELLE SIMONELLI a week: green pants, a Smokey Bear hat and a grandparents’ experience from working here than I ever safari shirt with a shoulder patch featuring a did growing up,” she said. BORN The Bronx Asnow-capped peak, a sequoia tree and an American bison. Simonelli’s father played clarinet for the New York City AGE 61 Never mind that the park where she works doesn’t have Opera and her mother was a church choir director. Her RESIDES Parsippany, N.J. mountains or redwoods or buffalos. In fact, childhood saw plenty of late nights hud- EDUCATION B.A. in international the highest elevation visitors can reach is a Even though I dled with her family in the orchestra pit studies, Vassar College; M.A. in viewing platform roughly 265 feet above “ watching her father play concerts. international affairs, Georgetown New York Harbor. say the same In school, she studied international University Simonelli is one of 70 park rangers who thing every relations and headed to Washington, BUCKET LIST Although she’s preside over the Statue of Liberty National D.C., for her first career, in the educa- visited national parks throughout tour, it’s always the Northeast and Southeast, Monument and Ellis Island. One of her main tional-publishing industry. On week- the visitors’ Simonelli has yet to go west, and is responsibilities is leading public and private ends, she was a volunteer docent at the first time looking forward to seeing Yosemite tours. With more than 20 years on the job, ” Smithsonian museums. She preferred and Yellowstone. the Bronx native has emerged as the go-to the museum job, and around age 40, she CLIMBING TO THE TOP A Liberty genealogy expert for the park’s 4 million quit publishing to work as an interpre- Island ranger’s daily duties include yearly visitors. “It doesn’t get old for me,” she says. “I love tive ranger at historical parks. climbing the 354 steps to patrol the walking people through the footsteps of the immigrants “Even though I’m saying roughly the same thing every statue’s crown. “Now that I’m work- ing on Ellis Island,” she said, “I need who came here—especially when they are looking for tour, it’s always the visitors’ first time,” she says. Simonelli to find a new fitness routine.” their own family history.” still recalls her own “Aha!” moment when she found her And her passion is personal: In her early years as a grandparents’ names on a steamship passenger manifest. ranger, Simonelli combed through the National Archives “The ship was called the Giuseppe Verdi, after the Italian and discovered that her grandparents—Giovanni Battista composer,” she says. “It was almost like a prediction about BUCK ENNIS Simonelli and Francesca Pierdomenico—came through the son they would go on to have.” — HILARY POTKEWITZ 36 | CRAIN’S NEW YORK BUSINESS | September 26, 2016 P036_CN_20160926.indd 36 9/23/16 4:23 PM SNAPS Supporting a neighborhood hospital The 171-year-old Brooklyn Hospital Center raised $1.3 million at its 28th annual Founders Ball, held in the atrium of the 464-bed Fort Greene hospital, with an after-party at the 40/40 Club at Barclays Center. Bob Knakal, chairman of New York investment sales at Cushman & Wakefield, with his wife, Cynthia, at the Brooklyn Hospital party on Sept. 13. Susan Skerritt, managing director and head of global transac- tion banking at Deutsche Bank; Gary Terrinoni, president and CEO of the Brooklyn Hospital Center; Lenny Singletary, vice president of BNY Mellon; and Karen Peetz, president of BNY Mellon at the hospital benefit. Tribute to late chef Roger Vergé Sustainable wine and food for the aquarium Herb Karlitz, Katie Lee, president cookbook author of Karlitz and honorary & Co., and event chair, and actor Michael Jim Breheny, Douglas at a Wildlife Conser- fundraiser for vation Society the Culinary executive vice Institute of president of zoos America on and aquarium, at Sept. 12 at the a Sept. 15 fund- Lighthouse at raiser for the New Chelsea Piers. York Aquarium in Brooklyn, held at the Central Park Zoo. Jon Forrest Dohlin, WCS vice president and director of the New York Aquarium, and Amy Freeze, a WABC-TV meteorologist, at the WCS event, Dave Winfield, special assistant to the executive director of the Major League which raised an Baseball Players Association; chef Emeril Lagasse; and Hollywood agent Shep undisclosed sum. Gordon, who helped to raise $100,000 for the Culinary Institute. BROOKLYN HOSPITAL, JULIE LARSEN MAHER, BILL MILNE HOSPITAL, BROOKLYN SEE MORE OF THIS WEEK’S SNAPS ONLINE AT CRAINSNEWYORK.COM/SNAPS GET YOUR GALA IN SNAPS. EMAIL THERESA AGOVINO, [email protected] September 26, 2016 | CRAIN’S NEW YORK BUSINESS | 37 P037_CN_20160926.indd 37 9/23/16 1:39 PM FOR THE RECORD* NEW IN TOWN Styx, into a more upscale for the space was $62 per n Danish jewelry brand $195 per square foot. CPEX the tenancy of the building, dining spot. The menu is square foot. Pandora signed a 10-year Real Estate represented the joining jeweler Alexis Bittar, n Guac Tacos + Tequila seasonal and sourced from lease at 407 86th St., in the landlord, while the tenant bocnyc, Pure Barre and Bit’z 179 Avenue B local farms. Murray’s father, n Gettry Marcus CPA, P.C. Bay Ridge area of Brooklyn. represented itself. Kids. Faith Hope Consolo The Mexican eatery offers a the comedian Bill Murray, will be consolidating two The 2,100-square-foot spot from Douglas Elliman menu completely revolving played the role of bartender New York City locations on is split between 500 square n Scotch & Soda took a Real Estate represented around guacamole, serving and poured drinks for a one floor of 1407 Broad- feet of the mezzanine, 800 retail lease for 900 square the tenant, while Orleans specialty dips along with select opening-night crowd. way. The consolidation of square feet on the ground feet on the ground level Realty LLC represented the tacos, burritos and fajitas. 14,000 square feet went for floor and 800 square feet of at 416 Columbus Ave. landlord. The asking rent The East Village restaurant n Bergdorf Goodman an asking rent of $80 per the basement, for storage. The Amsterdam-based for the space was $305 per opened on Sept. 16, Nation- 754 Fifth Ave. square foot. The landlord, Asking rent for the deal was fashion brand completes square foot. n al Guacamole Day. The luxury department Shorenstein Properties LLC, store has reopened after is spending $33 million on n The Gray Mare a redesign by architect renovations of the 1.1 mil- 61 Second Ave. Michael Newman. The lion-square-foot building. DEALS ROUNDUP The upscale tavern with an upgraded space is organized CBRE represented the land- outdoor patio was opened as a series of salons. lord and Cresa New York TRANSACTION BUYERS/ by Tom O’Byrne, the same represented the tenant. TARGET/SELLERS SIZE [IN MILLIONS] INVESTORS TRANSACTION TYPE owner behind Dempsey’s n Crow Bar Gas Natural SDG, S.A./Criteria $4,271.29 Global Infrastructure FB M&A Pub, an East Village favorite 820 Franklin Ave., n Publishing software Caixa, S.A., Single-Shareholder Partners (Manhattan) that occupied the same Brooklyn company EidosMedia is re- Corp., Repsol, S.A. (20%) space for 24 years. Dan Wilby, owner of Hol- locating within 14 Wall St., Intersil Corp./BlackRock Inc. $3,090.61 Renesas Electronics SB M&A low Nickel in Boerum Hill, signing a 10-year lease for a (Manhattan), Fidelity Investments, Corp. Fidelity Management & Research n The John Lamb opened a second bar, in 9,503-square-foot expan- Co., Franklin Resources Inc., 120 Allen St. Crown Heights, featuring a sion. Cresa New York rep- Goldman Sachs Asset Management This New American restau- menu of specialty cocktails resented the tenant, while L.P. (Manhattan), RidgeWorth Capital Management Inc., rant is now open inside the and wine. The bar also Cushman & Wakefield Vanguard Group Inc. boutique Sago Hotel on the serves a variety of sand- represented the landlord, Lower East Side. An eclectic wiches and savory snacks. Roza Management. Asking American Electric Power Co. Inc., $2,170.00 ArcLight Capital Partners FB M&A four power plants/American LLC, Blackstone Group L.P. menu and artisanal cocktails rent for the space was $48 Electric Power Co. Inc. (Manhattan) highlight locally sourced per square foot. Braas Monier Building Group S.A./ $1,713.17 Marsella Holdings S.à r.l. SB M&A ingredients. BANKRUPTCIES 40 North Management LLC n Serious Eats signed a (Manhattan), Lucerne Capital n Lippes Mathis Wexler n Baltyk Construction seven-year lease for 9,000 Management LLC, Monier Friedman LLP Corp. 88 35th St. Holdings S.C.A., Wellington square feet at Management Group LLP 415 Madison Ave. 5262 68th St., Queens in Sunset Park, Brooklyn. The Buffalo-based firm Filed for Chapter 11 The food website will Penton Operating Holdings Inc./ $1,559.33 Informa plc SB M&A MidOcean Partners (Manhattan), consisting of more than a bankruptcy on Sept. 15, occupy a vacant space on Wasserstein & Co. (Manhattan) dozen attorneys opened an citing estimated assets of $0 the top floor of Industry office in midtown east to to $50,000 and estimated City’s Building 4, between Raptor Pharmaceuticals Corp./ $891.69 Horizon Pharma plc SB M&A Broadfin Capital LLC (Manhattan), accommodate its expanding liabilities of $100,001 to Second and Third avenues. HealthCare Royalty Partners, client base. The firm works $500,000. The creditors CBRE represented the Meadowsweet Assets Limited, with Canadian companies with the largest unsecured tenant. Industry City, the Millennium Management LLC (Manhattan) that need assistance with claims are PC&P Union landlord, was represented NCP car parks portfolio/ $660.12 Davidson Kempner Capital SB M&A U.S. transactions. Welfare Pension Fund, in-house. Asking rent at Blackstone Group L.P. Management LLC (Manhattan) (Manhattan) owed $108,009; the Internal the 16-building complex n Sweets by Chloe Revenue Service, owed ranges from $15 to $35 per Vitae Pharmaceuticals Inc./Adage $638.7 Allergan plc SB M&A 185 Bleecker St. $106,456; and the New York square foot. Capital Management L.P., Atlas Venture L.P., AWM Investment Vegan chef and former State Insurance Fund, owed Co. Inc. (Manhattan), Cupcake Wars winner Chloe $48,180. n Thor Equities acquired Boehringer Ingelheim GmbH, Coscarelli opened an all- a 3,400-square-foot retail BVF Partners L.P., Cormorant Asset Management LLC, FMR Co. Inc., n dessert restaurant next Phili Equities LLC co-op at 125 Green St. in Foresite Capital Management LLC, to her fast-casual vegan 543 Bedford Ave., Suite SoHo for $12.6 million. The RA Capital Management LLC, restaurant By Chloe. The 214, Brooklyn space is made up of 1,600 Venrock (Manhattan) new Greenwich Village spot Filed for Chapter 11 square feet on the ground One Front Street, a Class A office $520.8 Paramount Group Inc. SB M&A serves vegan baked goods, bankruptcy on Sept. 14, floor, 500 square feet on the building in San Francisco/ (Manhattan) coffee and ice cream from citing estimated assets and mezzanine, and the balance Market Front Associates Limited Partnership Alchemy Creamery. liabilities of $1,000,001 below grade at the resi- to $10 million. The filing dential building. Meridian 401 East Las Olas LLC/J.P. Morgan $219.95 RREEF Property Trust Inc. SB M&A Asset Management Inc. (Manhattan) (Manhattan) n Wok Chi included no creditors with Investment Sales represent- 918 Third Ave. unsecured claims. ed both sides in the deal. Industrial and Financial Systems, $149.00 EQT Partners AB (13%) FB M&A The first New York City IFS AB (publ)/Elliott International Capital Advisors Inc. (Manhattan), Elliott location of a Brandon, Fla., RETAIL Management Corp. (Manhattan) fast-casual, stir-fry restau- REAL ESTATE DEALS n Italian retailer Official rant offers made-to-order Made in Italy signed a Selected deals announced for the week ended Sept. 16 involving companies in metro bowls and fresh dim sum. COMMERCIAL short-term lease to occupy New York. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing shares of a company without the participation of a financial buyer. FB M&A: Financial buyer M&A n The midtown east restau- Co-working space provid- 5,800 square feet of space represents a minority or majority acquisition of existing shares of a company with the participation of rant will also serve “Chi of er Spark Labs signed a 15- at 434 Broadway. Asking a financial buyer. the Day,” a rotating special year lease for 20,000 square rents were not provided, for on-the-go customers. feet at 25 W. 39th St. It but ground-floor rents SOURCE: CAPITALIQ will take the entire 14th on Broadway between floor of the building near Houston and Broome COMPANY MOVES Bryant Park. The location is streets averaged around GET YOUR NEWS ON THE RECORD * Spark Labs’ second, adding $824 per square foot during ABOUTTo submit companyTHIS SECTION openings, moves or real estate deals, or to receive further information, n 21 Greenpoint to its current location, a the spring, according to a email [email protected]. 21 Greenpoint Ave., 4,000-square-foot space at REBNY retail report. Nest For the Record is a weekly listing to help businesspeople in New York find opportunities, Brooklyn 833 Broadway. Thor Equi- Seekers International rep- potential new clients and updates on customers. Bankruptcy filings from the Eastern and Syd Silver and Homer ties is the landlord and also resented the tenant, while Southern districts of New York are listed alphabetically. Real estate listings are provided in Murray transformed their represented the tenant in Cushman & Wakefield order of square footage. restaurant, once called River the transaction. Asking rent represented the landlord. 38 | CRAIN’S NEW YORK BUSINESS | September 26, 2016 P038_CN_20160926.indd 38 9/23/16 4:31 PM PHOTO FINISH Without a Net ixty feet above East 44th Street, a five-man crew from Upgrade Services took turns leaning out and stretch- ing to clean the farthest corners of the windows in a 1950s-era office building. The sliding frames, which Sover time have mostly been phased out and replaced by tilt-in windows, required some risky maneuvering. The men were in violation of the state’s labor law requiring workers to use safety harnesses or a scaffold when cleaning the outside of windows. Otherwise, putting anything more than an arm beyond the sash is prohibited. The danger was underscored on Sept. 15 when an architect fell to his death while taking mea- surements atop a 48-story midtown building. Only two insurance underwriters nationwide cover high- rise window washing, so accidents cost companies dearly. Upgrade Services President John McDermott said the five men were sent for retraining once the union learned how they had performed their work. After years on the job, veterans can get overly brave, said McDermott, who started as a cleaner at age 18 in the 1980s. “You get lulled into a false sense of security that it’s OK to take these chances.”— PETER D’AMATO PETER D’AMATO September 26, 2016 | CRAIN’S NEW YORK BUSINESS | 39 P039_CN_20160926.indd 39 9/23/16 8:24 PM WE HEAR YOU, MARIO. With Express Funding, get your card payments in your Chase checking account the next business day. Chase.com/ExpressFunding All businesses are subject to credit approval. Next business day funding is available to eligible Chase merchant services clients who deposit into a single Chase business checking account. Visa®, MasterCard® and Discover® credit and debit transactions are eligible. Additional terms, conditions and restrictions apply. Merchant services are provided by Paymentech, LLC (“Chase”), a subsidiary of JPMorgan Chase Bank, N.A. Real business owners compensated for use of their actual statements. Deposit products offered by JPMorgan Chase Bank, N.A. Member FDIC ©2016 JPMorgan Chase & Co. Untitled-11 1 8/30/2016 12:13:11 PM