CHRISTIE SCANDAL Cuomo aides look to fill Port Authority’s power vacuum THE INSIDER CRAIN’S® PAGE 8

NEW YORK BUSINESS ap photo

VOL. XXX, NO. 2 WWW.CRAINSNEWYORK.COM JANUARY 13-19, 2014 PRICE: $3.00 Business THE DEVELOPER WHO HIT braces for PARTNER KENT SWIG council’s WITH AN ICE BUCKET new boss Allies of Melissa Mark-Viverito try to calm fears as lefty SEEKS A SECOND firebrand takes helm

BY CHRIS BRAGG

CHANCE—IN THE Moments after being crowned the new City Council speaker last week, Man- hattan’s Melissa Mark-Viverito re- vealed her priorities for the next four years: improve schools, reduce home- REAL ESTATE BIZ, lessness and lower housing costs. “We’ve got to get to work,” Ms. Mark- Viverito said. “There’s a lot to do.” But many business leaders are wary THAT IS of what she will do to them. Ms. Mark-Viverito’s See COUNCIL on Page 60

MADAME Yair Levy wants back in the game, SPEAKER: Melissa Mark- despite a lifetime ban imposed by NY’s Viverito AG. Here’s how he hopes to pull it off ap photo

BY DANIEL GEIGER When Yair Levy, 64, emerged late last year as the buyer behind a row of The tweet buildings in Tin Pan Alley, he wasn’t simply trying to rebuild his real estate empire, which he once estimated to have been $400 million. He was looking for redemption. heard by “Most people went through tough times in 2008,” Mr. Levy said. “People think I have a bad name,and that’s why I am trying to explain this story.[People the Street are] mistaken as far as what happened in the past.” Mr. Levy’s story, like so many others’ before him, begins with immigrant entrepreneurship and streetwise investing that turned modest buildings into Drugmaker faces impressive moneymakers.The Great Recession toppled him from his heights, questions on timing STANDING TALL: Yair and a theft scandal led to a lifetime ban from selling real estate securities, Levy disputes the facts during stock offering handed down by the attorney general. that led to his ban from the condo industry by But what cemented his reputation was the incident with the ice bucket. Attorney General Eric BY AARON ELSTEIN In an hourlong interview with Crain’s in December, Mr. Levy said he was Schneiderman. humbled by his losses. No longer would he build high-rise luxury Two years ago, April Moundzouris condominiums like the 58-story residential tower on West called was diagnosed with amyotrophic later- al sclerosis, or Lou Gehrig’s disease. buck ennis See DEVELOPER on Page 59 Last week, she shared a glimmer of good news on the Internet: She’s re- sponding well to her treatment in a 02 REPORT REAL ESTATE clinical drug trial. 5 Surprisingly hot properties: Bidding wars are “I believe I’ve been given more time and quality of life,” Ms. Moundzouris breaking out for industrial leases P. 13 wrote on her blog Jan. 4. “I can say be- fore this Neuralstem study, nothing THE LIST Top NYC property sales P. 16 else came close to these results.” NEWSPAPER See BIOTECH on Page 59 71486 01068 0 20140113-NEWS--0002-NAT-CCI-CN_-- 1/10/2014 7:29 PM Page 1

EDITOR’S NOTE

D-i-v-o-r-c-e FYICRAINSNEWYORK.COM A veteran Crain’s reader with a reputation as an ideas guy visited last Thursday to talk infrastructure, JPM’s missed Madoff signals about the same time hen Charles Ponzi concocted the Gov. Chris Christie was on TV scheme that bears his name in 1920, uttering his umpteenth apology for the Hanover Trust Bank of Boston the scandal known as Bridgegate. W handled his deposits and withdrawals. Investors “Why does there even have to be a Glenn Coleman ended up losing about $225 million in today’s Port Authority of and dollars. Bernard Madoff’s Ponzi scheme lasted New Jersey?” the visitor asked. for decades and cost investors about $18 billion, “Why can’t there be a Port Authority of New York and he conducted it “almost exclusively” and a Port Authority of New Jersey?” You mean a through his accounts at JPMorgan Chase starting divorce, I said. He shrugged.Things change. You back in 1986, according to last week’s settlement move on. “But what about the children?” I asked. bloomberg news between the bank and federal prosecutors. Not Christie and Cuomo.The assets: the airports, Documents released by the Justice Department show that some JPMorgan bankers sensed the PATH trains, the World Trade Center. Who something was amiss with Mr. Madoff fairly early. In 1994, one banker complained that he was gets what? How do you split the GW Bridge? “Paint kiting checks—moving money between accounts for the purpose of making them look larger a line in the middle of it?” he coyly suggested. Maybe and collecting more interest—but a more senior banker said that was all right because Mr. he’s right.The two-state marriage that created the Madoff was making so much money for the bank. Later, others in the bank sensed Mr. Madoff Port Authority back in 1921 was a good-government was running a Ponzi scheme and his investment performance was too good to be true.They went innovation that leveraged unprecedented resources so far as to alert British law-enforcement officials, but not U.S. authorities. to construct massive bridges, tunnels, airports and Over and over, different people in different parts of the vast JPMorgan empire came to more. Now it’s less about building the new and more understand something was off about Mr. Madoff, but the pieces were never quite knit together about maintaining the old. It’s a real estate portfolio internally.This says something about the nature of very big banks:They are collections of different that generates $4 billion a year in operating revenue large organizations united by the chief executive’s force of personality. —aaron elstein to help pay off $20 billion in bonds. As for good government, Bridgegate sheds light on one of many CHRISTIE ‘BRIDGEGATE.’ An “embar- rid of $65 million worth of invento- political realities at the Port Authority.This is a joint rassed and humiliated” New Jersey ry and new merchandise from its 39 HOORAY! run by two governors and their patronage Gov. Chris Christie axed a top aide, stores and Rutherford, N.J., distri- THE NEW YORK Bridget Anne Kelly, after emails bution center. … CLOSING THE ROAD RUNNERS appointees. Hundreds of millions of dollars in linked her to George Washington BOOKS ON FIFTH. Barnes & Noble will allow 5,000 more runners to contracts are steered to vendors who often spread Bridge lane closures.The act was one shuttered its outpost on Fifth Av- take part in campaign contributions on both sides of the of political revenge after Fort Lee’s enue and East 18th Street last week. March’s half- Hudson. Splitting up this family would hike the cost mayor declined to endorse the gov- The store’s 56 employees will be laid marathon. ernor for re-election. Mr. Christie off by the end of January. The shop of borrowing for repairs and new infrastructure, but apologized but insisted that he had was the company’s first college book- not prohibitively so, since each state enjoys excellent no prior knowledge of his staff ’s ac- store. Just a half-dozen retail loca- bloomberg news bond ratings. And some Port Authority children tions. (See Page 8.) … EAST VILLAGE tions remain in . Mean- OY VEY! GETS IBM’S WATSON. IBM plans to while,the bookseller named Michael remain shared responsibilities. But turning one MORE THAN 100 retired NYPD and FDNY spend $1 billion to create a new busi- Huseby, who currently heads its workers were charged with faking mental overly politicized bureaucracy into two smaller ness centered around Watson, its su- Nook unit,as CEO.… MACY’S POST- illness to get federal disability benefits. bureaucracies would mean a single line of command percomputer best HOLIDAY BLUES. De- from governor to grunt. No more multiple masters. known as a Jeopardy! ‘I do not spite a solid holiday A healthier change for all. champion. The unit, season and prof- with snazzy new believe … in itability over the past headquarters at As- merit pay, but four years, Macy’s THIS WEEK IN CRAIN’S tor Place, already has said it will shed 2,500 more than 2,000 em- I do believe employees and shut- ployees. Watson is ter five stores. The IN THE BOROUGHS------4 expected to help the in special restructuring could IN THE MARKETS------6 Armonk, N.Y., tech help the company giant reach its $20 bonusing for save $100 million a executive director of the South SMALL BUSINESS ------7 billion revenue pro- strategic goals’ year. The shop at the Florida Regional Transportation jections for its big Mall at Bay Plaza, Authority, will succeed him. … THE INSIDER ------8 —Mayor , data and analytics Bronx, is still sched- OSCAR’S NO GROUCH. Venture after Gov. Andrew Cuomo BUSINESS PEOPLE ------9 services by 2015. … uled to open this fall. capitalist Joshua Kushner’s health LOEHMANN’S CLEAR- announced his desire METRO-NORTH OPINION ------10 to create a reward system … insurance startup,Oscar,bagged $30 ANCE SALE. A judge PREZ’S FINAL STOP. million in financing, bringing its GREG DAVID------for teachers 11 allowed liquidators A month after a de- total to more than $75 million. The REPORT: REAL ESTATE------13 to begin selling the 93-year-old dis- railment killed four passengers and company aims to use technology to count chain’s assets after it filed for injured more than 70 others, create a flexible, user-friendly REAL ESTATE DEALS------15 bankruptcy for the third time. The Howard Permut announced his re- service. NEW YORK, NEW YORK CLASSIFIEDS ------56 Bronx-based company expects to get tirement. Joseph Giulietti, former —emily laermer Paul Common’s Uncorked is FOR THE RECORD------one of a new breed of wine 58 retailers in the city. P. 61 SOURCE BREAKFAST------62 STORIES TO WATCH THIS WEEK vol. xxx, no. 2, january 13, 2014—Crain’s New York Business (ISSN 8756-789x) is published weekly,except for double issues the weeks of June 23,July 7,July 21,Aug.4,Aug.18 and Dec. 22, by Crain Communications Inc., 711Third Ave., New York, NY 10017. Periodicals postage paid at New York,N.Y.,and additional mailing offices.Postmaster: Send address changes to: Jan. 13-14: First Jan. 14: JPMorgan Jan. 14-15: Jan. 16: Real Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, days of 2014 Chase announces NYU’s Women Estate Board of MI 48207-2912. for subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one official business its 4Q results, Entrepreneurs New York’s 118th year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2014 by Crain Communications Inc. All rights reserved. for the state kicking off bank Festival annual banquet Legislature earnings season.

2 | Crain’s New York Business | January 13, 2014 20140113-NEWS--0003-NAT-CCI-CN_-- 1/10/2014 6:18 PM Page 1

Mayor vs. Governor To tax or not to tax is the question dividing New York’s alpha males. Both can’t get what they want

BY ANDREW J. HAWKINS

Mayor Bill de Blasio wants to tax the rich.Gov.Andrew Cuomo wants to give them a tax cut. The mayor just won a landslide victory and has political cap- ital to spend, while the governor enjoys broad popular support and is aiming for a historic re-election in November. With the elements for a classic political fight in In his corner: place, the two Democrats will need to reach a compro- mise on taxes between now and the April 1 state budg- high approval et deadline. And Mr. Cuomo appears to have the up- per hand: The city depends on Albany for billions in ratings, veto state aid each year, as well as to set income-tax rates. With that leverage, Mr. Cuomo can pressure Mr. de power Blasio to ease off his populist mes- In his corner: sage and accept whatever can be squeezed out of the budget for uni- unions, Dems versal prekindergarten, the mayor’s signature campaign proposal. in the Senate “Mayor de Blasio won’t be able to unilaterally raise and Assembly taxes in on high-income earners,” said Heather Briccetti, president and CEO of the Business Council of New York State, which supports tax cuts proposed by Mr.Cuomo.“He’ll need the agreement of the Legislature and the governor, which means he’ll need HIKE: Mayor Bill de Blasio wants to some kind of deal if he wants to get that done. And I just don’t see it CUT: Gov. Andrew fund universal pre-K happening.” Cuomo has embraced with new taxes on But Mr. de Blasio has cards to play. Both Assembly Speaker Sheldon Sil- pre-K but doesn’t want to the city’s rich. See ALPHA MALES on Page 60 pay for it with a tax hike. ap/wide world photos

January 13, 2014 | Crain’s New York Business | 3 20140113-NEWS--0004-NAT-CCI-CN_-- 1/10/2014 6:18 PM Page 1

IN THE BOROUGHS Family reinvests in LIC Third generation heeds grandfather’s words: Stay very local

BY CARA S. TRAGER

Two years ago, Matthew Quigley plunked down a tad under $100,000 NOT SO LUCKY: Lucky to buy an aging Rhode Island ferry Lee said it’s getting and turn it into a dockside Long Is- harder to deliver her land City,Queens, hot spot offering tomatoes to her food and drink restaurant customers. with a stunning view of the Man- buck ennis . 1M hattan skyline SIZE of That project family’s LIC has since tem- holdings in porarily sailed square feet Stand still and hope to deliver under the radar, but for Mr. Quigley, the 1950 DATE founder restaurants scurrying to make Delivering tomatoes to the heart could gain traction. third-generation Louis Pfohl Bike lanes, dearth of meals for the midtown lunch of Manhattan has never been easy, The Department of Transporta- scion of a family moved to LIC parking spaces have crowd. The distance she had to go but with the city growing, along tion, under the recently departed that owns more and set up shop was a mere 12 blocks. But as usual, with the number of restaurants, Commissioner Janette Sadik- than two dozen delivery businesses traffic on was transportation planners are re- Khan, aggressively reorganized city properties in jammed. thinking ways to get goods into and streets, creating pedestrian plazas 10 waiting—for answers STORIES in “Midtown lunch service starts out of the central business district in Times and Herald squares, as City,the idea still family’s Hunters around 11 at many places, and without having to make huge in- well as 83 miles of bike lanes in makes sense. It Point Plaza office BY THORNTON MCENERY kitchens need my tomatoes in time vestments in infrastructure, such as Manhattan alone since 2006. still fits into his building for prep,” said Ms. Lee from the a cross-harbor freight tunnel or en- Those projects earned the depart- family’s grand Lucky Lee had a problem. It was passenger seat of a box truck as her acting politically unpopular meas- ment a reputation for being anti- plan to make Hunters Point, on the 9:47 a.m. on a recent Thursday,and deliveryman, Gustavo Navarro, ures like congestion pricing. In- car, a reputation that newly ap- southwestern tip of Queens, into a the owner of Lucky’s Real Toma- turned right onto East 37th Street. stead, ideas like nighttime pointed Commissioner Polly place that can draw tech entrepre- toes had less than 30 minutes to get “If we don’t get there in time,they’ll deliveries (tested a few years ago as Trottenberg will have to confront. neurs to work and perhaps live, and her delivery truck to her customers: turn us away.” a pilot program) and cargo bicycles See WAITING on Page 58 See FAMILY on Page 12 NYU expansion hits bump STATS AND THE CITY by Nicholas Wells DEEP FREEZE: The polar vortex disrupted travel and set new records in winter Zipper Building, arguing that piece- Legal and political hurdles block finish line electricity usage in the city. A total of 2,155 flights were canceled into or out meal construction without state ap- of the three major area airports between Jan. 4 and Jan. 7. ing stopping it from beginning its proval constitutes a different project BY JOE ANUTA first planned complex in the 20-year that requires more study. project—the nearly 1 million- NYU may try to change the con- 4° -15° A state Supreme Court ruling last square-foot, mixed-use Zipper struction staging to avoid using the TEMPERATURE recorded in LOWEST TEMPERATURE week did not technically kill New Building at the corner of Mercer green spaces, a move that the uni- on Jan. 7—the lowest recorded to date in Central Park, York University’s controversial ex- and West Houston streets—be- versity’s land-use attorney, Bryan reached in the city since 2004 on Feb. 9, 1934 pansion plans, although it set up po- cause the construction area is not Cave partner Philip Karmel, con- tentially costly political and legal situated on any of the three parcels. tends it has every right to make hurdles that now cloud the 2 million- “Certainly there is no injunction without another public review. But 500% square-foot development’s future. 317% INCREASE in against NYU proceeding with the that would likely prove another av- INCREASE in New York City-based State Supreme Court Justice portions of the project that were not enue through which Mr. Mastro heat-related Google searches for “space heater” Donna Mills decreed last Tuesday upset by the court,”land-use attorney would argue the project needed to complaints to between Dec. 4 and Jan. 4 that three parcels of land that NYU Howard Goldman said.“The issue is go back to the drawing board. the city’s 311 planned to use as construction stag- whether going ahead with a portion Of course, NYU could also win hotline between ing areas were actually public parks. of the project would require new the appeal, which would allow it to 9,063 Dec. 28 and Ms. Mills’ decision prevented the land-use or environmental review.” proceed with the original plan. The MEGAWATTS of power reached on Jan. 4 school from undertaking any con- Should NYU file for those per- university could also obtain state ap- Jan. 7 at 6 p.m., the day’s peak—a struction activities that would affect mits, which it has said it will not do proval to use the newly designated record for electric usage in the city those pieces of land pending ap- until it gets the results of an impend- parkland. The state typically defers Sources: Global Gateway proval from the state Legislature. ing internal study,opposition groups to the local representative on ques- during the winter Alliance, National Weather Service, National Oceanic and “This does not mean, however, would have more fuel for lawsuits. tions of repurposing parkland, who Atmospheric Administration, that NYU will ultimately be prevent- Randy Mastro,a lawyer at Gibson in this case is Assemblywoman Deb- HOURS that travel was banned on NYC OpenData, Google Trends, the Long Island Expressway as part of Consolidated Edison, New York ed from going forward with its proj- Dunn who is representing the plain- orah Glick, D-Manhattan. She is 8 State Department of Transportation

Gov. Andrew Cuomo’s snow emergency on Jan. 3 world photos wide ect,”Ms.Mills wrote in her decision. tiffs, could claim NYU had violated opposed to the project. / The university announced after- Ms. Mills’ edict should construction “Nobody is putting a shovel in ap ward it will appeal Ms.Mills’ruling, begin or he could also file suit against the ground tomorrow, let’s put it ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY but in the meantime there is noth- the city should it issue permits for the that way,” Mr. Goldman said. Ⅲ

4 | Crain’s New York Business | January 13, 2014 CN016412.indd 1 1/9/14 10:31 AM 20140113-NEWS--0006-NAT-CCI-CN_-- 1/10/2014 6:19 PM Page 1 IN THE Aereo nabs $34M in funding MARKETS The , Queens- kets, and will launch in five more by by Aaron Elstein Now flush with cash, based company streams local chan- the end of the first quarter, Mr. controversial Web TV nels via tiny remote antennas, and Kanojia said. argues that subscribers have a right Subscribers pay $8 a month for startup will expand to receive that programming and to the service, or $12 for additional into new regions copy it, through a cloud-based DVR storage. DVR, for their personal use. In December, rather than con- Skeptical view BY MATTHEW FLAMM tinue fighting lawsuits in different Aereo does not divulge how regions, Aereo agreed that the many subscribers it has or how Last week was a big one for Aereo. broadcasters’ appeal should go be- much revenue it generates. Even The streaming television service fore the Supreme Court. The court with its success with financing and raised $34 million to continue its announced last Friday that it would court victories, some analysts re- national rollout. And the U.S. take the case. main skeptical about its long-range Supreme Court agreed to hear the In an interview last week, Chief prospects as a stand-alone business. appeal brought by the major televi- Executive Chet Kanojia said that At a conference last month, Mr. sion broadcasters, which want to he—and his in- Kanojia said that the shut it down. vestors—were con- Despite legal service could break The new investment brings fident that Aereo even in a given mar- Aereo’s financing total to nearly would continue to challenges, ket with only 5,000 $100 million, and adds celebrated prevail. “We to 6,000 subscribers. names to the company’s existing demonstrated the ‘the law was Dan Rayburn, a

backers: Joining the Series C round law was on our side principal analyst world photos wide / of funding were Gordon “Gordy” [from the start],” on our side’ with consulting firm ap Crawford, one of the most promi- Mr. Kanojia ex- Frost & Sullivan nent media investors of the past few plained. “And since from the start who covers the decades, and Li Lu, the Chinese then we’ve demon- streaming-video in- human-rights activist behind strated it four times. —CEO Chet Kanojia dustry, said he didn’t Alcoa foiled by Himalaya Capital Management. Obviously that adds see how that was to the confidence.” possible, considering Court battles He added that it the costs for band- pension burden Aereo, which streams broadcast was especially im- width, subscriber ac- television programming to sub- portant to have Mr.Crawford’s sup- quisition and antennas. scribers’ mobile devices, announced port: “He’s a well-respected, almost “They’re going through a lot of he CEO of Alcoa, Klaus Kleinfeld (above) must’ve the funding last week. Originally iconic investor in the media and tech money, and this is not a mass- backed by IAC Chairman Barry space. He’s seen how industries market product,”he said,citing con- been glad to see 2013 end.The aluminum maker Diller, the company has been fight- evolve,and he shares our view where tent offerings that are limited to posted a $2.3 billion net loss last year, as lower metal ing—and winning—legal battles T the future lies.” broadcast networks and niche chan- prices forced it to write down the value of acquisitions by since its launch in 2012, when the Aereo will use the financing to nels like Bloomberg and shopping $1.7 billion.The company and a joint venture it controls also major broadcasters joined together bring its infrastructure-heavy serv- network HSN. “Netflix and others and sued it for copyright infringe- ice to new regions. During the past are successful because they have agreed to pay $384 million to settle Justice Department ment because it transmits their pro- year, it has expanded beyond its breadth of content. Aereo has the allegations of bribery in Bahrain. Adding insult to injury, the gramming without paying for it. home base in New York to 10 mar- [least] content around.” Ⅲ company, which lists its “principal office” on but its “corporate center” in Pittsburgh, was booted out of the Dow 30 after 54 years in . Perhaps worst of all, Alcoa’s pension plan remains underfunded even after the market’s mighty rally in 2013. Alcoa will be shoveling in REFRESHINGLY TRANSPARENT billions over the next few years to help make up the shortfall. Here’s the drill: Alcoa’s employ- bonds—a natural response, perhaps, ee pension had $11 billion in assets but that meant missing much of the at the end of 2012, according to its ensuing recovery in shares and hold- most recent annual report, yet it ing a lot of low-yielding bonds. had $14.7 billion worth of commit- Alcoa now has to pour cash into ments to retirees.That means it was its pension plan ($460 million last $3.7 billion short,or just 75% fund- year).The company said in its most ed, going into 2013. recent annual report that pension This isn’t an unusual situation in contributions would be its largest pension land. New York City’s em- cash expense over the next two years ployee pension plans are 65% fund- after energy costs and raw material ed, and Verizon’s is 67% funded.The purchases. That, of course, is mon- reason for these gaps is mainly be- ey it can’t invest in its business. cause bonds have yielded precious Rising stock prices and interest little for years. Pension funds are rates help relieve the pressure, but big bond investors because they only to a degree. In a conference call generally consider the stock market last week,Alcoa said its pension plan too volatile for them to commit ended 2013 underfunded to the most of their money. tune of $3.2 billion. Still, the com- JetSuite is still the only private jet charter operator to instantly Alcoa, however, bet heavily on pany said, it would contribute an- provide and guarantee all-in quotes online. With JetSuite, you will stocks last decade to turbocharge its other $625 million this year. pension fund’s growth. In 2006, Alcoa may not be alone. Big in- know–to the penny–what you are going to pay before you fly on shares made up 57% of assets, pre- dustrials like Verizon and IBM will our WiFi-equipped jets. JetSuite Edition CJ3s priced best East of the cisely the wrong place to be when the be releasing full-year results soon. market tanked two years later. The They,too,may be forced to commit Mississippi; Phenom 100s priced best West of the Mississippi. plan slashed its stock holdings to hundreds of millions annually to 33% of its portfolio and bought more their pension plans. Ⅲ JetSuite.com 866-779-7770 APPROXIMATE SHARE of annual sales generated during the holiday season by ARGUS PLATINUM RATED 27% Tiffany & Co. Last week, the retailer said it sold ©2014 JetSuite® All Rights Reserved. All fl ights operated by JetSuite Air, FAR Part 135 Certifi cate #9SUA667M. $1.03 billion worth of jewelry during the two

bloomberg news months ended Dec. 31.

6 | Crain’s New York Business | January 13, 2014 20140113-NEWS--0007-NAT-CCI-CN_-- 1/9/2014 7:20 PM Page 1

SMALL BUSINESS No cap on growth Hatmakers diversify $55 million in annual revenue. As a merchandise Nonetheless, to thrive in a tough manager for Bloom- and find new industry, HYP also offers acces- ingdale’s in Manhattan sories as varied as underwear and in the 1980s, Mr. Co- prospects amid tough flip-flops. “This is a business where hen saw the hat depart- you must diversify,” said Howard ment fold into acces- market conditions Levy, another HYP founder. sories. In recent years, BY BILL GLOVIN Increased challenges small U.S. cap makers The company isn’t alone in ex- have also faced height- HAT TRICK: Despite tough aseball cap wholesaler panding its offerings this way. To- ened competition from competition, Mike Pascal’s HYP had no problem day,few companies can afford to fo- giants such as Nike, Manhattan firm, HYP, sells most of attracting retail buyers cus solely on hats and caps, says New Era, Reebok and its hats through major retailers. to its expanded new Marshal Cohen, chief retail analyst Adidas, which have li-

digs on West 37th for the NPD Group, a consumer censing and guaran- buck ennis BStreet last quarter to snap up the market-research firm in Port Wash- teed sales agreements latest neon and bright-colored ington, L.I. with college and pro sports teams have to be careful to keep costs down and military styles. “We were a styles for this year’s back-to-school Though the propensity of and dominate the market. amid growing price pressure. wholesale company founded by our season. Selling most of its hats celebrities like Kate Middleton, The challenges have had a big ef- “When we first started out, there parents in 1982, but two years ago, through big retailers such as Kohl’s Lady Gaga and Kate Moss to wear fect locally.New York state accounts were a handful of domestic manu- we started selling online,” said and Target under various labels,the hats has sparked some interest for almost 20% of all employment in facturers,” said Mr. Pascal of HYP. Laura Ackerman, one of three sib- 25-employee company has reached among women in buying them, the $2 billion hat industry, accord- “By our second order, we realized lings who own the company, which the point where it doesn’t have to go fashion trends have been unkind to ing to a 2012 report by IBISWorld, that to be price-competitive and is profitable.The charms of its mer- to trade shows at the Jacob K. Jav- the headwear market in recent years. an industry market-research firm. meet delivery deadlines, we had to chandise aren’t lost on foreign cus- its Convention Center to pick up “People generally buy headwear to New York City remains one of the manufacture overseas.” tomers. “We do a lot of business in orders. associate with a role model or a suc- few cities in the country with Japan, where American products “We have established relation- cessful sports team, not to protect millinery shops and wholesale dis- Big in Japan such as our fedoras are very popu- ships, so they come to you,” said them from the elements,” said tribution. “It’s comparable to the Expanding into new markets has lar,” she said. Ⅲ Mike Pascal, a founding partner at Karen Giberson, president of the jewelry exchange in the sense that helped fuel growth for family- the profitable firm, which he Accessories Council in Manhattan, while every city may sell diamonds, owned New York Hat Co., which To sign up for Crain’s launched in 1991 with three college a national trade organization. no city sells diamonds like New makes vintage hats like the Cagney, SMALL BUSINESS newsletter, go to basketball-playing buddies and The decline of the headwear York,” said Mr. Cohen. as well as offerings including knit ski www.crainsnewyork.com/smallbiz. which now generates $35 million to market has been long in the making. To stay competitive, hatmakers caps and berets, ladies’ floppy hats

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Brandon Medeiros (212) 206-6161 [email protected]

31st Floor

January 13, 2014 | Crain’s New York Business | 7 20140113-NEWS--0008-NAT-CCI-CN_-- 1/10/2014 7:31 PM Page 1 THE Hospitals finally bid for LICH INSIDER by Daniel Geiger bulance service and a freestanding with at least 350 of those designat- Brooklyn Hospital, emergency department around the ed as affordable housing. NYU pitch housing, clock where noncritical acute ill- But SUNY seems unwilling to nesses or injuries would be treated welcome a newcomer’s proposal at ER and outpatient around the clock. this stage. Other proposed services include “We are adhering to the state’s clinics for ailing site radiology,laboratory and endoscopy well-defined procurement rules,” services,outpatient surgery,an infu- said a SUNY spokesman. sion center, outpatient physical BY BARBARA BENSON therapy and physicians’ offices. NYU floats cancer center Inpatient services would be Meanwhile, NYU Langone is One month ago, SUNY Downstate based at Brooklyn Hospital, about proposing a 60,000-square-foot Medical Center tabled a proposal to 1.5 miles away. The hospital would medical space that includes a free- sell its Long Island College Hospi- build and operate two clinics with standing emergency department, tal campus to a developer after primary and specialty care services cancer center, ambulatory surgery protests from the Cobble Hill com- and two urgent care centers, all lo- center and multispecialty physician munity. Now a competing plan has practice. The real estate develop- ap photo emerged, led by Brooklyn Hospital ment component is unchanged Center, that includes 1,000 mixed- Union and from Fortis’ original proposal, Christie bridge scandal rocks Port income apartments. which SUNY selected from the re- The proposal is meant as a political support sponses to its formal request for ridgegate has been a crisis for New Jersey Gov. Chris Brooklyn-centric alternative to a are needed for proposals. Fortis’ medical partner Christie, but one that New York officials at the Port new plan SUNY is considering from for that plan had been ProHealth Authority of New York and New Jersey don’t intend to NYU Langone Medical Center and latest idea to fly Care Associates, a large physician B Fortis Property Group,the develop- group. let go to waste. er that has a place in negotiations— The inclusion of NYU Langone The scandal, in which Christie appointees shut access unlike Brooklyn Hospital—because is a politically astute play. Last lanes to the George Washington Bridge to punish Fort it was the winner of SUNY’s formal month, SUNY trustees delayed a procurement process for the LICH planned vote on Fortis in part to let Lee’s Democratic mayor for failing to endorse the campus. SUNY trustees could vote cated in LICH’s geographic service Bill de Blasio,who opposed LICH’s governor’s re-election bid, provides an opportunity to curb on the LICH proposal this week. area. Additional services and facili- closure, have a hand as mayor in the dysfunction that results from a division of command ties could be added based on input LICH’s fate. His first deputy mayor Brooklyn Hospital’s plan from the community, unions, clini- is now ,NYU Lan- between two states with differing priorities. Brooklyn Hospital is teaming up cians and politicians. Laid-off gone’s former senior vice president. Consider that in February, the Port Authority’s nearly with an unnamed private-equity union workers would be placed in “We’re excited about this. We $30 billion capital budget, one of the biggest and most firm and a developer. LICH would the emergency department, clinics think it’s great,” said Dr. Andrew important pipelines of funds for infrastructure spending in close and cease operating as a full- or other facilities within two years. Brotman, NYU Langone’s senior service hospital,according to people LICH’s extensive real estate vice president and vice dean for clin- the region, is expected to finally get the go-ahead from the briefed on the plan. The main hos- holdings would be sold off.The plan ical affairs and strategy.“But we un- agency’s commissioners, more than six months after it was pital site would be repurposed as a calls for the development of 1,000 derstand the politics are extraordi- initially slated for approval. Ⅲ comprehensive care center with am- mixed-income residential units, narily complicated.” The holdup? Officials at the Port Authority said the sprawling agency was devising a more transparent, objective and sophisticated methodology for deciding what projects it

Photo Credit: Buck Ennis undertakes. But rumors swirled that the delays were caused by the typical horse-trading between the New York and, especially, the New Jersey sides of the agency. Such Business Breakfast Forum: negotiations have become a rite of passage in the approval process for the Port Authority’s massive capital budget every Meet New York’s Borough Presidents four years or so. That quid pro quo style of split- Mr. Christie has been served ting up the pot of funds has caused the message the hard way. Several observers of the agency to fret over insiders at the bistate agency say he whether its precious money, in- held up the capital budget in recent creasingly under strain from mas- months so that its announcement sive operating and maintenance would better coincide with his po- costs, is properly being allocated to litical aspirations for higher office. Hear firsthand what each of the Borough Presidents envision for their the most needed infrastructure. Given the bridge scandal, it is in- borough and their top priorities once in office. The agency, for instance, has conceivable that Mr. Christie will had to put off developing a garage get the same mileage now out of Speakers: Tuesday, January 28, 2014 on the West Side of Manhattan unveiling some of the planned › Eric Adams, Brooklyn Borough President The Yale Club of New York City that would save hundreds of bus highlights for New Jersey in the › trips across the Hudson River every next capital plan. Gale A. Brewer, Manhattan Borough President 50 › Ruben Diaz, Jr., Bronx Borough President day, while other Port Authority One project he planned to an- › Melinda Katz, QueensEVENT Borough President SOLD8:00 a.m. - 8:30 a.m.:OUT Networking Breakfast projects—such as the $1 billion nounce was a more than $1 billion › James Oddo, Minority Leader of the City Council 8:30 a.m. - 9:30 a.m.: Program raising of the Bayonne Bridge— extension of the PATH train to have been given a green light. connect with the AirTrain to and Borough President-Elect $95 for individual ticket(s). $950 for table(s) of ten. Some observers are hopeful the Newark airport. Greg David, Crain’s Columnist and CUNY J School Director, Business Reporting Program to moderate. George Washington Bridge fiasco In fact, insiders suspect Mr. will help put an end to the political Christie is likely to stay away from dysfunction. Port Authority matters for a good “There’s definitely an effort while—and perhaps to even leave now to depoliticize the agency,” a decision-making on spending high-ranking official at the Port there to transit experts, not politi- You must be pre-registered to attend this event. No refunds permitted. Ⅲ For more information, contact Adrienne Yee at 212-210-0739 or email [email protected]. Authority said. cal appointees. For sponsorship information, contact Lauren Black at (212) 210-0736 or [email protected]. $1.02M Amount spent on transition Sponsored by: and inauguration by Mayor Bill de Blasio

8 | Crain’s New York Business | January 13, 2014 20140113-NEWS--0009-NAT-CCI-CN_-- 1/9/2014 7:18 PM Page 1

BUSINESS 66% Growth in compensation costs of city’s workforce since 2002, despite a 3% drop in head count Sources: Independent Budget Office, PEOPLE comptroller’s office

EXECUTIVE MOVES

Longman Lindsey: John Longman,51, joined the acoustical engineering and consulting company as president, a newly created position. He was previously president at Cerami. STRESS TEST: Regency Hotel Time Out New York: Terri White,34, Managing Director Jim joined the magazine as editor in chief. McPartlin has been working on the property’s refurbishment She was previously executive editor at for the past 10 months. Life & Style Weekly. Julian Wolf Inc.: Cory M. Baker,36, founded the brand management and business development agency, and is principal. He was previously managing director at Infinity Lifestyle Brands. Patricia Lynch Associates: Danna DeBlasio, 27, was promoted to managing director of New York City Council lobbying at the government- relations firm, a newly created position. She was previously manager of Latino affairs. UJA-Federation of New York: Emily Kutner, 43, joined the nonprofit as director of public relations. She was previously media director at BLJ Worldwide. Drummond Woodsum: Elizabeth Wall, 36, joined the law firm as director of marketing and business development. She was previously New York regional marketing manager at Arnold & Porter. Willkie Farr & Gallagher: Kirk A. Radke,

buck ennis 55, joined the law firm as a partner in its private-equity practice group. He GOTHAM GIGS was previously a partner at Kirkland & Ellis. Kaufman & Co: Jeffrey L. Loop,49, joined the law firm as a member. He was previously counsel in the litigation and intellectual-property departments at Carter Ledyard & Milburn. Restoration period Tradition Energy: Jeffrey Wall, 50, joined the energy risk-management and procurement advisory firm as senior energy adviser. He was previously Jim McPartlin preps Regency Hotel for reopening energy portfolio manager at Con Edison Solutions. Sabre Real Estate Jim McPartlin’s 10-month-old job as managing also was overseeing the training of some 400 Group: Raymond ‘It’s all director of the Loews Regency Hotel has been employees, half of whom are new. ¶ Though his Harari, 32, joined all-consuming. Most nights he wakes at 3 a.m., boss is a co-owner of the New York Giants and a the firm as associate coming director. He was worrying about work. “It’s a good stress, the kind member of the Super Bowl host committee, Mr. previously an together. of anxiety that moves things along,” he insisted.¶ McPartlin knows nothing about football, except associate director at CPEX Real Estate. This is the The Park Avenue property, owned by Jonathan that he’s expecting the property to be sold out for Magnusson Tisch, has been closed for a $100 million year- the big game Feb. 2. ¶ Mr. McPartlin, 51, grew Architecture and Planning: Fernando Villa, 52, was promoted to associate fun part long renovation.The Regency, a power breakfast up in rural Davenport, N.Y. (population: 2,965). principal. He was previously an spot, wants to be a contender for lunch, dinner His father was a printer; his mother worked in a associate. now’ and drinks, too, to attract younger guests. Its factory. He was the first in his family to attend Mayer Brown: Hannah Y.S. Chanoine, 38, was promoted to counsel in the reopening this week will unveil a new restaurant, college, having graduated from the Rochester litigation and dispute-resolution bar, meeting spaces and lobby, and its 379 Institute of Technology. But it was a 1980s practice at the law firm. She was previously an associate. revamped rooms will cost up to 25% more than a television drama, Hotel, starring James Brolin, Jennifer M. Rosa, 34, was promoted to year ago. ¶ “The Regency was brought down to that sparked his interest in the business. ¶ Mr. counsel in the litigation and dispute- its studs,” said Mr. McPartlin, “but it’s all coming McPartlin has worked for celebrity hotel owners resolution practice. She was previously an associate. together.This is the fun part now.” ¶ In the days Ian Schrager and André Balazs and opened four Mashable: Jason Abbruzzese, 30, before the grand reopening, the hotelier was properties since 2006. “I always dreamed of joined the media company as a business reporter. He was previously a focusing on the details: floral arrangements, running a fancy hotel on Park Avenue,” he said. Web editor at the Financial Times. lighting levels, music in the public spaces. He “And here I am.” —lisa fickenscher —eva saviano

January 13, 2014 | Crain’s New York Business | 9 20140113-NEWS--0010-NAT-CCI-CN_-- 1/9/2014 7:19 PM Page 1

OPINION CRAIN’S NEW YORK BUSINESS

Pre-K’s missing pieces editor in chief Rance Crain publisher, vp Jill R. Kaplan he hottest policy debate in New York is national ones such as Head Start, have found that benefits EDITORIAL editor Glenn Coleman not whether to implement a citywide tend to be modest and fade over time, sometimes leaving managing editor Jeremy Smerd children no better off than those who entered school at age deputy managing editors Valerie Block, prekindergarten program, but how to pay Erik Ipsen for it. Mayor Bill de Blasio wants to fund 5. Mediocre teaching is a major reason (one 11-state study assistant managing editor Erik Engquist found effective teacher-student interactions in just 15% of senior news producer Amanda Fung its first five years with a temporary, state- contributing editor Elaine Pofeldt imposed tax surcharge on city households pre-K classrooms), while chaotic home environments are a columnists Greg David, Steve Hindy, Alair Townsend factor as well. crain’s health pulse editor Barbara Benson earning $500,000 or more. Gov. Andrew senior reporters Theresa Agovino, Cuomo wants taxes cut, but will try to find money for pre-K The mayor speaks almost daily about taxing the rich more Aaron Elstein, Lisa Fickenscher, Matthew Flamm, in the budget. but hasn’t uttered a word about how he will ensure pre-K Daniel Geiger, Adrianne Pasquarelli T reporters Joseph Anuta, Chris Bragg, This argument, while necessary, ignores crucial questions students get a well-trained teacher rather than glorified day Andrew J. Hawkins, Thornton McEnery reporter/videographer Ken M. Christensen about adding an early grade. Cobbling together the cash— care. And what space will they use? Pre-K classrooms in news producer Emily Laermer more than $500 million a year—to offer all city kids pre-K struggling schools go web reporters/producers will be easy compared with building a program that actually unfilled each year, Nazish Dholakia, Irina Ivanova The mayor has art director Steven Krupinski works from today’s patchwork of classes. Mr. de Blasio has while in successful deputy art director Carolyn McClain staff photographer Buck Ennis yet to cite a model that he would emulate. Oklahoma and not explained schools they are copy desk chief Steve Noveck Georgia have statewide pre-K programs, but the jury is out packed. copy editor Thaddeus Rutkowski how his program data editor Suzanne Panara on their effectiveness. Other questions researchers Eva Saviano, Nicholas Wells Supporters take it as gospel that pre-K would be a wise would work abound. Will the city’s ADVERTISING, MARKETING AND PRODUCTION investment.They cite various analyses over the years program shift jobs from senior account managers Irene Bar-Am, Jill Bottomley Kunkes, Courtney McCombs, claiming that early-childhood education pays for itself by private pre-K schools Suzanne Wilson putting youngsters on the path to becoming taxpayers rather to the teachers’ union? director of custom content Trish Henry What year would sales coordinator Lauren Black than burdens on society. But these studies brazenly events coordinator & scheduler extrapolate from experiments involving tiny, high-quality classes begin? Despite his focus on income inequality, Mr. de Alexis Sinclair credit Todd J. Masura (313-446-6097) programs, notably the 1960s Perry Preschool study of 123 Blasio has also avoided the touchy issue of bad parenting, director of audience & content high-poverty 3- and 4-year-olds. which is not merely a result of poverty but often a cause of it. partnership development Michael O’Connor senior marketing manager No U.S. city has actually brought an intensive effort like The mayor is asking New Yorkers to hand over another Catherine Schutten Perry to the scale envisioned by Mr. de Blasio. Studies of half-billion dollars a year. It’s time for some answers about director of conferences & events Courtney Williams other early-childhood initiatives, from boutique programs to what he would do with it. reprint sales manager Lauren Melesio production and pre-press director Simone Pryce advertising production manager CRAIN’S ONLINE POLL COMMENTS Suzanne Fleischman Wies ONLINE AND INTERACTIVE SERVICES senior web developer, interactive Chris Tumminello Bad judgment in Jersey TO SUBSCRIBE: For print and digital subscriptions or customer service, e-mail [email protected] BRIDGEGATE ing the poor and middle class lization was once necessary for or call 877-824-9379 (in the U.S. and Canada) or more than anyone? school buildings during the 313-446-0450 (all other locations). $3.00 a copy for Re “Christie claims he was Affordable housing built short period when public the print edition; or $99.95 one year, $179.95 two

wide world photos wide years, for print subscriptions with digital access. / misled by aide” (Crains with unaffordable costs for schools experienced a down- ap NewYork.com): Even if Gov. building? Hmmm. turn in population; now those www.crainsnewyork.com/subscribe DO YOU FAVOR GOV. Chris Christie didn’t order the —leonard schools are needed for the lat- TO ADVERTISE: Fort Lee lane closures himself, est wave of youngsters. Contact Lauren Black at ANDREW CUOMO’S PLAN [email protected] or call 212-210-0736. it raises the questions: Who RETHINKING HOSPITALS Make sure that the hospi- TO LEGALIZE MEDICAL would hire someone who tals’ trustees and executives www.crainsnewyork.com/advertise MARIJUANA? would even remotely consider Re “2014 bodes ill for hospitals” are sound, support the debt FOR INFORMATION ON OUR EVENTS: doing something as stupid and ( Jan. 6): It looks as though our service and invite primary care Contact Courtney Williams at horrible as this? What does mayor is going to advocate for services right into those build- [email protected] or 212-210-0257. Yes. It alleviates some people’s suffering. www.crainsnewyork.com/events Better to regulate it than to criminalize it. The this say about Christie’s judg- equality among all boroughs ings. Please use what we have Cuomo plan is a good first step. ment as to whom he considers when it comes to hospital serv- first and fix up these places. TO CONTACT THE NEWSROOM: valued staff? ices. Manhattan is overbedded. Let’s all take a breath and No. 711 Third Ave., New York, NY 10017-4036 It doesn’t work, and it tells young people —fred Queens and Brooklyn are not. think through how important it editorial phone: 212.210.0277 that weed is medicine. Moreover, it’s a power Brooklyn But let’s agree that until we fig- is for chronically ill older adults fax 212.210.0799 grab by the governor. ure out the need for beds, we in Queens and Brooklyn to Entire contents ©copyright 2014 Crain Communications Inc. All rights reserved. ®CityBusiness is a registered trademark Date of poll: Jan. 6 will use the hospitals for needed NEW SPEAKER, have a hospital close to them. of MCP Inc., used under license agreement. 566 votes NEW COSTS health care by reshaping them. How nice it is for our children After all, the reasons these hos- to be born in their own com- CRAIN COMMUNICATIONS INC. BOARD OF DIRECTORS Re “Council speaker winners pitals were placed in the loca- munities, and think about how chairman Keith E. Crain president Rance Crain 10% and losers” (CrainsNewYork tions they are in was for access necessary it is for people with treasurer Mary Kay Crain No .com): Let me see … If all the to the residents who needed mental illness who sometimes Cindi Crain teachers, health care workers, ready care. require short-term care to have executive vp, operations William Morrow hotel workers, builders, etc. get So if it is true that fewer an institution close by. executive vp, director of strategic 90% paid much more and take more beds are needed in these The answer for most of operations Chris Crain Yes sick leave, and have “job for life” places, then why not use them these needs in Brooklyn and senior vp, group publisher David Klein protections, doesn’t that mean for outpatient care and other Queens should not be vp/production, manufacturing David Kamis Anthony DiPonio costs will rise dramatically for services that are sorely needed Manhattan. chief information officer all New Yorkers, thereby hurt- in these communities? Re-uti- —ramon founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) secretary Merrilee Crain (1942-2012) FOR THIS WEEK’S QUESTIONS: CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to [email protected]. Send columns of 475 Go to www.crainsnewyork.com/poll to have your say. words or fewer to [email protected]. Please include the writer’s name, company, address and telephone number.

10 | Crain’s New York Business | January 13, 2014 20140113-NEWS--0011-NAT-CCI-CN_-- 1/9/2014 6:47 PM Page 1

JONATHAN MARVEL

easy, it is pretty much that simple— Micro-units could be Retailers Wholesalers Restaurants Hotels Oil Dealers Social Services and well within the mayor’s purview. The city has a micro-unit pilot project underway that will prove in- housing’s big solution valuable in helping city planners un- derstand best practices for building such housing. Strong design guide- ayor Bill de Blasio has taken office with a man- lines for light,air and common spaces Read Adam Friedlander’s date to act quickly on one of his boldest prom- are imperative. But only with an ad- How to $ave Big on Workers’ Compensation ises: to create or preserve 200,000 affordable equate supply of apartments will we be able to substantially improve housing units.It is a big,complicated problem, affordability, and that can happen Call To Save Today and the solutions he has endorsed are not easy. only if micro-units are a standard op- As an architect who works with the development communi- tion for builders. Coupled with M affordable-housing regulations and Adam Friedlander • 800-394-7004, ext. 206 • [email protected] ty, I would add a simple proposal that is not on the mayor’s list: incentives already endorsed by Mr. www.friedlandergroup.com • www.howtosavebigonworkerscomp.com make micro-units a standard building option, or “as of right.” de Blasio, this would go a long way *Underwritten by the NYS Insurance Fund, 199 Church St., NY, NY 10007 toward achieving his housing goals. What are micro-units and why are of “family-size” units beyond what a After decades of making the in- they crucial? The city’s Department typical family can afford. At the dustrial city more livable and attrac- of Housing Preservation and Devel- same time, some single and elderly tive, New York needs to embark on opment defines a micro-unit as an people keep large yet affordable a new kind of rebalancing. Working apartment of less than 400 square feet apartments while record numbers of people, young people, single people with a kitchen and bathroom. The homeless families are in shelters. and elderly people are vital parts of city has an 800,000-unit shortage of Mr. de Blasio could champion the mix that makes neighborhoods apartments for singles, the result of a the required legislation now. In vibrant, but they can’t find suitable, snowballing demographic trend. Manhattan, two zoning changes are affordable apartments. Micro-unit More and more people choose to needed: Allow apartments to be housing is an essential piece of the live alone—or would if they could smaller than 400 square feet, and puzzle for New York to remain a city find a suitable apartment. Accord- eliminate the density calculation for everyone. ing to research by the Citizens that effectively limits the number of Housing and Planning Council, studio apartments within a build- Jonathan Marvel is the founder and 56% of the city’s housing units are ing. In the outer boroughs, the city principal of Marvel Architects. In occupied by people living alone or would also have to relax the parking partnership with Hamlin Ventures, his sharing with unrelated adults. Mul- requirement for new buildings. design for a micro-unit apartment building tiple wage earners paying rent for While no one would argue that zon- was one of five finalists in the city’s micro- large apartments drive up the price ing changes in New York City are unit design competition, adAPT New York.

NYC’S NEWCOMERS Immigration stats Origin 2000 2007-11 Immigrants 50% 33% From U.S.* 50% 67% don’t tell whole story College grads 1985-90 1995-2000 2007-11 hen New York’s Department of City Plan- 39% 46% 56% ning last month issued a third edition of its Median earnings** look at immigration, the headlines trum- 1985-90 1995-2000 2007-11 peted “a wave of newcomers” and high- $45,130 $57,959 $57,399 lighted the fact that foreign-born New *Includes Puerto Rico Yorkers now top 3 million, a record. Some noted that the Chi- **Adjusted for inflation (2010 dollars) Sources: The Newest New Yorkers, Department of City W Planning, 2013 edition nese were likely to supplant Dominicans as the largest immi- grant group. of any immigrant group ($83,000, The more important revelation or 68% more than the median for all was buried in the last chapter: Al- New Yorkers), and Filipinos are not though the total number of immi- far behind. grants continues to rise, the number City Planning doesn’t speculate arriving each year is falling signifi- much on the reasons for all this, and cantly. it is an issue that needs much more Since 2000, says City Planning, analysis.My thought is that it is a re- foreign-born arrivals have fallen by flection of how expensive the city 25% a year, to about 67,000. The has become. Immigrants historical- city’s population is continuing to ly have arrived poor and settled grow because more people are mov- where the rents were cheapest. ing to New York from elsewhere in There are far fewer of those places the country than they have in GREG DAVID today. decades, and they have more than It is also possible that this trend made up for the shortfall in immi- will accelerate if any sort of immigra- grants. only on Wall Street, but also in tech tion reform clears Washington’s Just as interesting, immigrants and in other creative industries. gridlock. consensus is that and people who move here from The same trend holds true for the country should open the door other places in the United States are those from abroad, reflecting the wider to people who bring skills and better educated and make more growing percentage of arrivals from to those who come to the U.S. for money.Anecdotally,it is obvious that Asia, and especially India, who have college and advanced degrees.Those much of the domestic influx consists already graduated from college. are exactly the people who gravitate of college graduates coming to make They also get better jobs: Indian to New York and whom the city their marks in the Big Apple—not households have the highest income needs to grow the economy.

January 13, 2014 | Crain’s New York Business | 11 20140113-NEWS--0012-NAT-CCI-CN_-- 1/9/2014 6:41 PM Page 1

IN THE BOROUGHS QUEENS Family builds for tech in LIC Continued from Page 4 1 million square feet of space—as 200,000-square-foot, 10-story of- at the same time give locals reason well as in economic development fice building whose tenants today enough to forgo Manhattan’s and philanthropy. In recent years, include two state agencies. nightlife. that effort has been led by three “Grandfather was a pioneer for “They understood that fostering a cousins ranging in age from their Long Island City,” said Mr. tech community is more than just late 30s to their mid-50s. All are the Quigley’s cousin Andrew Kirby. about the property,” said Jack Fried- grandchildren of Louis Pfohl, “The vision was that this area man, executive director of the a second-generation Austrian- would blossom at some point and Queens Chamber of Commerce. American engineer, lawyer, archi- we would steadily look for oppor- “It’s about creating an environment tect and designer who invented a tunities.” for tech people to live,work and play.” new way to shape plastic in the 1930s and founded Plaxall to do it Power-sharing No incubator on an industrial scale. These days,the responsibility for Another part of that effort was In 1950, after his original facto- running the family’s diverse empire the family’s bid alongside the non- ry in Flushing was condemned to falls to Messrs. Quigley and Kirby profit Coalition for Queens to make way for a housing develop- and their cousin Tony Pfohl. They launch a tech incubator in a family- ment, Mr. Pfohl decamped to Long share the titles of owner and manag- RISING TIDE: The descendants of Louis Pfohl, led by Matthew Quigley, Andrew Kirby and Tony owned warehouse that overlooks Island City. There, impressed with ing director and make all major de- Pfohl, turned profits from plastics into Long Island City real estate. the future site of Cornell Tech. But its proximity to Manhattan and cisions jointly. Mr. Kirby, based at the incubator plan also fell short, transportation links,he began snap- Plaxall’s headquarters, is in charge owing to its failure to secure govern- ping up and developing real estate. of manufacturing and commercial Abraham Lincoln once stayed—that House,a social-services agency.Sim- ment funding. Those purchases included 5-22 real estate,while Mr.Quigley,also at the owners’grandfather purchased in ilarly, Mr. Quigley is an executive And so it goes for the family that 46th Ave., where he built his facto- Plaxall, oversees some commercial the 1960s and that the family reno- board member of the Long Island has transformed itself from the ry, as well as sites for warehouses real estate, along with the family’s vated at a cost of $30 million. City Partnership,which advocates for owner of a plastics manufacturer and, in 1960, a larger plant next to residential holdings. Closer to home, the cousins re- local economic development. called Plaxall Inc. to a big player in the original,which remains Plaxall’s Mr. Pfohl lives in Iowa, where he cently secured a building permit for “We have a lot invested here and Long Island City real estate—with headquarters today.In the 1980s, he oversees the family’s assets.Those in- a property they own on 49th Av- are not going to take the money and properties encompassing more than developed Hunters Point Plaza, a clude a Dubuque hotel—where enue, where they plan to develop a run,” said Mr. Quigley. Ⅲ four-story residential building.Like all the family’s New York holdings, the lots are in Hunters Point—in ac- cordance with their grandfather’s FROM directive. “He said you should al- ways buy things you can walk to,” AROUND said Mr. Quigley. THE CITY The value of the family’s real es- tate portfolio far outstrips that of its plastics business, which today BRONX produces everything from hospital suture trays to industrial packag- Legislator tackles ing. Mr. Kirby said the 25- youth football employee company is profitable but declined to disclose revenue. A Bronx assemblyman’s bill to ban Meanwhile, to boost the for- tackle football for younger children tunes of Long Island City—and is gaining support in Albany but is their properties there—the cousins sending ripples of concern through have thrown themselves into ef- the ranks of youth-football-league forts to establish the area as a coaches. The law would make it il- launchpad for entrepreneurial ven- legal for children in the state under tures.They have backed, for exam- the age of 14 to play tackle football. ple,the two-year-old,1,500-mem- The statute would be the first of its ber Coalition for Queens. Jukay kind in the United States. Hsu, the group’s founder and exec- The bill’s author, Democratic utive director, said that Plaxall has Assemblyman Michael Benedetto, provided it with space and funding cites research from a doctor at for meet-ups and other events that bring tech entrepreneurs together. “They were the first members in the business community that under- stood technology was important to Queens,” said Mr. Hsu. A facilitator The family also connects tenants with one another, and with other TAKE A HIKE: Proposed state legislation Long Island City firms. Through would ban tackle football for kids. one such introduction, two-year- old marketing agency Digital Na- tives, a Plaxall tenant, landed a job Boston University who found that working for the Queens Chamber even lower-impact hits to the head of Commerce.Another helped Dig- can cause damage to still- ital Natives land yet another Plaxall developing brains over time. tenant, LIC Flea, a flea market in “Kids at a younger age can play which Plaxall is a partner,as a client. touch or flag football and then ease “Everyone is trying to raise the into tackle,”said Mr.Benedetto.The tide for all boats in LIC, and the assemblyman said he has at least a Plaxall family is certainly one of the half-dozen co-sponsors for the leg- leaders,” said Ben Guttmann, a islation in the Assembly but does not Digital Natives partner. yet have a sponsor in the Senate. The cousins also work with sever- The proposed law has sparked al nonprofits.Mr.Kirby is treasurer of outrage among youth-football- the Queens Museum and has fol- league coaches, who call it a “ridicu- lowed in his mother’s footsteps as sec- lous overreaction.” retary of the Jacob Riis Settlement —kerry murtha

12 | Crain’s New York Business | January 13, 2014 20140113-NEWS--0013-NAT-CCI-CN_-- 1/9/2014 6:43 PM Page 1

REAL ESTATE INSIDE The List Real Capital Analytics’ top NYC property sales PAGE 16 Forecast Five of the industry’s biggest names weigh in on what to expect in 2014 REPORT PAGE 18 Industrial lease market heats up Bidding wars break out as rezonings lead to space crunch

BY JOE ANUTA

In October, on the very first day that a vacant 6,000-square-foot industrial property hit the market in Greenpoint,Brooklyn,brokers at Kalmon Dolgin Affiliates got three solid offers. Within hours, the contest ended when AIA Sheet Metal beat out its two ri- vals. It carried the day by offering not just to sign the lease immedi- ately, but also to pay $17 per square foot—roughly 30% more than what the space would have rented for just a year earlier. Virtually unheard of in New York $14.25

fred harper City, bidding AVERAGE asking rent per square wars for in- foot for industrial dustrial prop- space in the outer erty leases boroughs in 2013 have become commonplace in the past 12 $11.50 months as an AVERAGE asking outgrowth of rent in 2011 a market that many experts call the most com- petitive in memory. Meanwhile, the far smaller sales market for in- ON THE RISE: (From left) Laurence Gluck, Harry Macklowe and Bruce Eichner dustrial locations is frothier yet. “I’ve never seen a tighter mar- ket,” said Jeff Marshall, a broker at Kaplon Belo Affiliates in Long Island City, Queens. On the leasing side, the new reality is borne out in the data that Return from the depths show the average asking rent per square foot for industrial space in Crash-smashed, Gluck, In many ways, Bruce Eichner, to be one of the best-regarded hotels the outer boroughs jumped to Laurence Gluck and Harry Mack- and resorts on the Las Vegas Strip. $14.25 last year, up nearly 25% Macklowe and Eichner lowe were poster children for the bust $65M The problem was that Mr. Eichner from an average of $11.50 in mid- years, defaulting on a combined bil- AMOUNT Bruce Eichner had originally planned the project,the 2011, according to commercial demonstrate their lions of dollars of loans and handing paid last year for a Cosmopolitan, not as a hostelry but a real estate research firm CoStar. some of the biggest acquisitions and 600,000-sq.-ft. residential condo. That change in course was In the past year alone,the average staying power development projects of the boom building site in made after Mr. Eichner was forced to rent has climbed an estimated over to their creditors. But the three turn the roughly $4 billion project 10%. BY DANIEL GEIGER men have not only rebounded, they back to his lender, Deutsche Bank, in “Last year was sort of a transi- are engaging in some of the highest- one of the most colossal defaults of the tion year,where pricing power for Five years after the financial crisis profile and most lucrative deals of $700M+ recession. rents returned to the owners and crashed a flurry of real estate deals and their careers. AMOUNT for which Laurence The foreclosure was Mr. Eichner’s the landlords,” said CoStar’s careers, the market in the city has Gluck sold most of second career collapse; he went bust Rene Circ,director of research for bounced back to new heights, bring- BRUCE EICHNER Independence Plaza, a during the recession of the early industrial spaces. ing with it some of the developers During the last real estate boom, 1,300-unit apartment 1990s. But as the Cosmopolitan Many market insiders cite hardest hit by the recession. Bruce Eichner built what turned out building in TriBeCa, in 2012 See DEPTHS on Page 14 See INDUSTRIAL on Page 17

January 13, 2014 | Crain’s New York Business | 13 20140113-NEWS--0014-NAT-CCI-CN_-- 1/10/2014 1:33 PM Page 1

REPORT REAL ESTATE From the depths

Continued from Page 13 square-foot residential building at demonstrates, Mr. Eichner has an the site, which had previously been undeniable flair for building real es- owned by Vornado and has seen a tate projects that catch the eye.That raft of development proposals over imagination has won him yet anoth- the years. er career revival. Last year,Mr.Eichner purchased LAURENCE GLUCK a modestly sized development site at Three years ago, Laurence Gluck 41 E. 22nd St., where he plans to lost his biggest office tenant at 2 build a soaring 800-foot tower that Rector St.—the city’s Department cantilevers over adjacent properties. of Transportation—and with it, “He excels at conceiving of and what seemed like his only chance of executing deals that push the enve- holding onto the downtown office steve friedman ap photos newscom lope,” said Jeff Katz, chief executive property through the recession. BRUCE EICHNER, LAURENCE GLUCK AND HARRY MACKLOWE are each working on deals that show how far they’ve come back. of development firm Sherwood Soon after, he defaulted on the Equities, and a peer and friend of 440,000-square-foot building’s Mr. Eichner. “Very few of his proj- $110 million mortgage. a partnership of the Kushner Cos. his hold on several major properties Plaza,Mr.Gluck sold the Milk Stu- ects are ordinary,and when he builds But Mr. Gluck, a 30-year-plus and investment company CIM during that period but held onto dios Building on West 15th Street a something, he swings for the real estate veteran,then turned what Group. others long enough to sell several as- year ago for $284 million, a whop- fences.” appeared to be a certain financial The deal encapsulates the way sets at a substantial profit in the re- ping $120 million more than he Next up for Mr. Eichner is work disaster into an unlikely profit.First, Mr. Gluck has stormed back since cent rising market. bought it for in 2008. And now he on another development site that he he brought in a partner—real estate the depths of the recession, when a “He got caught in a bad market, and partners are renovating the ad- acquired for $65 million last year,on investment firm Savanna—which combination of excess leverage and like a lot of investors did,” said jacent office properties 161 Sixth East 125th Street in Harlem at 1800 injected enough money to avoid plummeting market conditions Stephen Meister, an attorney who Ave. and 233 Spring St. into a com- Park Ave. According to reports, Mr. foreclosure. Then, in 2013, the pair threatened to leave his career and represents Mr. Gluck. “But I think bined 500,000-square-foot com- Eichner is planning a 600,000- sold the property for $140 million to reputation in tatters. Mr. Gluck lost everyone recognized that he was an plex in the heart of the super-trendy honest guy, and when he could no office market. longer hold onto a property, he turned over the deed.” HARRY MACKLOWE In addition to his troubles at 2 To buy the Park Lane Hotel for Rector St., Mr. Gluck suffered a tri- $660 million in November, investor fecta of other major defaults that Steve Witkoff sourced financing didn’t end as well. He stopped serv- from Wells Fargo,the biggest lender icing the $116 million mortgage for in the country, and brought on a the office building at 1140 Sixth partner from China, home to the Ave. and eventually turned the city’s most active and property over to his lender, the well-capitalized foreign investors. Blackstone Group. But the ace up his sleeve ap- Mr. Gluck also defaulted on the peared to be Harry Macklowe, who Parkmerced housing complex in will take a minority equity stake in San Francisco, which carried a the project but possibly a big hand in mammoth $550 million mortgage, helping Mr. Witkoff reap the full potential from what is widely re- garded as one of the best-located Mr. Gluck ‘got residential sites in New York. Mr. Macklowe’s participation in caught in a bad the deal is an example of how even top developers acknowledge his skill market, like a in development, especially in the city’s priciest and glitziest precincts, lot of investors’ such as the Plaza district and Park Avenue.That reputation has helped allow Mr. Macklowe to re-emerge after one of the most spectacular collapses ever seen in the city’s real and lost control of that deal as well. estate industry. In 2008, during the And in Harlem in March 2010, Mr. financial crisis, he was forced to Gluck gave back the keys to the hand back a $7 billion portfolio of 1,200-unit Riverton Houses apart- Manhattan office towers to his ment complex when his projections lender, Deutsche Bank. of converting its rent-stabilized Six years after that debacle, Mr. units to top-dollar market rates Macklowe,now 76,has launched an proved overly ambitious. unlikely comeback. He is in the He was also dealt a huge blow process of raising what will be, at when a state court ruled that same nearly 1,400 feet, the tallest condo year that he had illegally deregulated building in the Western Hemi- apartments at Independence Plaza,a sphere at 432 Park Ave., in partner- 1,300-unit complex in TriBeCa, a ship with CIM Group. decision that Mr. Meister later got “This was the first project that overturned on an appeal. CIM did in New York,and obvious- The victory on Independence ly quite a massive undertaking,”said Plaza was more than enough to pay Robert Sorin, an attorney at Fried back the other losses. Mr. Gluck Frank who represents Mr. Mack- sold most of his stake in that build- lowe. “They realized that Harry is ing to Vornado in 2012 for more probably the greatest pure develop- than $700 million. er of our generation and that he, “The amount of money he made more than anyone, has the local on that deal alone was enough to knowledge and expertise and cre- make up for everything he lost dur- ative vision to provide the ideas and ing the recession and then some,” the ability to execute that project.” Mr. Meister said. Mr.Macklowe is also working on In addition to the profitable sales converting 737 Park Ave.and 150 E. of 2 Rector St. and Independence 72nd St. into residential condos. Ⅲ

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REAL ESTATE DEALS

floor space was $40 per square foot, 123 William St. BARE BONES but the Spot Experience will enjoy a Bowery fit for period of free rent and funds from unloads entire floor 1140 SIXTH AVE. Silverstein to build out the area. The partnership is the latest be- It hasn’t taken East End Capital long ASKING RENT; TERM: higher-end gym tween the Spot Experience and to begin seeing dividends on its in- $80 per residential developers, including vestment in the downtown office square foot; LeFrak, Argo, Rockrose and Mil- building at 123 William St. The land- 10 years ictoria’s Secret models might soon be mingling with residents of lennium Partners—although this is lord, using brokerage CBRE Group SQUARE the Bowery now that ModelFIT,a fitness program that caters to the first case in which a dedicated Inc., has found a taker for one of the FEET: supermodels,has signed on for a gym in the area.The fitness cen- facility will be set up at the building, 500,000-square-foot building’s va- 12,750 ter completed a seven-year deal for 1,500 square feet on the sec- according to CEO Mitch Marrow. cant lower floors. TENANT; REP: Trilogy Global Advisors; ond floor of 212 Bowery, between Spring and Prince streets. The “We provide the full scope of pet The Institute for Career Devel- Kirill Azovtsev of Jones Lang LaSalle askingV rent was $80 per square foot.The space includes an outdoor patio. services,” Mr. Marrow said. “We do opment has signed a five-year lease LANDLORD; REPS: Blackstone Group; The neighborhood is rapidly developing as the place to be for hotels, re- it as an amenity so developers can for the 27-story property’s entire Douglas Neye and David Wassel of tail stores and restaurants, said Adam Stupak, who represented ModelFIT market this competitive advantage.” fifth floor, a 26,600-square-foot Jones Lang LaSalle along with fellow Task Real Estate broker Jason Sandlofer. “The whole area He hopes the service will take hold space, according to Brad Gerla, a BACK STORY: The financial-services in other enclaves around the city. CBRE Group Inc. broker who helps firm will occupy space on the 18th is hot,” Mr. Stupak said. ates out of a gym in The Spot Experience will use handle dealmaking at the property floor, according to The Commercial “It’s not like the Bowery of TriBeCa, should open in part of the Silverstein space for retail for landlord East End Capital and its Observer. 10 years ago.” about five months in its products, while other portions will ownership partner at the property, The arrival of nearby new space above a kitchen be cordoned off for cageless day care, GreenOak Real Estate. Career Development from mid- retailers such as Intermix supply store. It replaces a separated by dog size, where owners Paul Maas, a broker at Jones town south. “The transit center has and Patagonia has helped photography studio. can monitor their pets’ activities via Lang LaSalle, represented the ten- been a huge draw,” Mr. Gerla said. push ground-floor retail Jean King, a broker webcam, according to Mr. Marrow. ant in the deal. The asking rent for CBRE is close to securing com- rents to about $200 per with NYC Homes, repre- The firm also offers GPS- the space was $37 per square foot. mitments for 123 William’s sixth square foot—still a bar- sented landlord 212 Bow- tracked dog-walking services, and Mr. Gerla, who specializes in and seventh floors as well, another gain compared with SoHo’s $600- ery in negotiations. will set up a therapy and wellness leasing deals downtown and in mid- 50,000 square feet of leasing. plus. ModelFIT, which also oper- —adrianne pasquarelli center.A veterinarian will be on-site town south, said that 123 William The leasing reflects a pickup in with remedies, including underwa- has received a flurry of interest since downtown dealmaking. More tech ter treadmills designed for physical East End and GreenOak purchased tenants are moving to lower Man- Silverstein signs 12th avenues. therapy, and will make house calls. it in October for about $130 million. hattan for its dense transit, low The Spot Experience signed the The facility should be able to ac- The partnership offered millions of rents and growing residential feel. luxury dog house deal as part of a recently forged part- commodate about 375 dogs once it dollars of improvements,including a It’s also increasingly a prime place nership with Silverstein, and will opens as expected in February. new lobby, windows and . to buy office buildings. Insurance An upscale dog-care facility has offer its pooch-centric perks to res- Peter Trivelas from DTZ repre- The work will likely be done by the giant Manulife bought 100 inked a 10-year lease for 9,000 idents in the more than 2,000 units sented the tenant in the transaction, beginning of the second quarter. William St. in October, and Billy square feet at the base of Silverstein at Silver Towers and River Place while Silverstein was represented by The building is across from the Macklowe purchased 156 William Properties’ luxury developments at next door as an amenity. Gary Steinberg of Lee & Associates. new Fulton Street transit hub, St. in November. 620 W. 42nd St., between 11th and The asking price for the ground- —joe anuta which helped lure the Institute for —daniel geiger Honors for industry leaders The Real Estate Board of New York will honor these professionals at its annual banquet on Jan. 16 Stephen L. Green Joel I. Picket Thomas Hill AWARD: Bernard H. Mendik Lifetime AWARD: Kenneth R. Gerrety Humanitarian AWARD: George M. Brooker Management Leadership in Real Estate TITLE: Chairman and chief executive, the Executive of the Year TITLE: Chairman, SL Green Realty Corp. Gotham Organization TITLE: Senior vice president, Boston Properties’ New York Property Management Since founding SL Green in 1980, Mr. Mr. Picket has led the 83-year-old family- Department Green has been involved in the acquisition owned development and construction firm of more than 75 Manhattan office since 1965. During that time, the company Since joining Boston Properties in 1985, buildings totaling in excess of 50 million has built more than 30,000 residential units Mr. Hill has held a variety of ever-bigger square feet. The company posted an in the metropolitan area, as well as a executive positions. He currently oversees estimated $1.3 billion in revenue in 2013. Mr. Green is also number of large-scale hospital and educational projects. He the REIT’s property management and tenant relations actively involved in the Children’s Tumor Foundation, the serves as a board member of the New York Philharmonic, the throughout the city. In addition, he sits on the board of Nicklaus Children’s Health Care Foundation and Hospital, and Park Avenue Armory and the Foundation for the National directors of the Realty Advisory Board on Labor Relations and Citymeals-on-Wheels. He also maintains an endowment for Archives. He also serves as a member of the board of governors on the Management Division Board of Directors of the Real the New York-Presbyterian Global Prostate Cancer Research and executive committee of the Real Estate Board of New Estate Board of New York. He is also active in several local Center and his alma mater Hartwick College. York. industry and civic groups.

Kenneth Fisher Robin Abrams Robert Fink AWARD: Harry B. Helmsley Distinguished AWARD: Louis Smadbeck Broker AWARD: Young Real Estate Man New Yorker Recognition of the Year TITLE: Senior partner, Fisher Brothers TITLE: Executive vice president, TITLE: Director of leasing, the Winter Lansco Corp. Organization Mr. Fisher is part of the third generation to lead his family’s real estate firm. As such, As a company principal, Ms. Abrams With nearly two decades’ experience in the he oversees the leasing, management and focuses primarily on retail leasing and city’s commercial real estate industry, Mr. marketing of more than 6 million square consulting. She works exclusively with Fink oversees all aspects of leasing and feet of Class A commercial office space in companies to secure locations in New marketing for the Winter Organization’s midtown. Outside work, Mr. Fisher is a member of the York City, and has worked with VF Corp., Kellwood Co. and portfolio of commercial properties. Prior to his real estate executive committees of the City Investment Fund and the Donna Karan/DKNY. She was also the recipient of the 2010 career, he worked in marketing and sales at a computer Real Estate Board of New York’s board of governors. He is also Deal of the Year award from the Real Estate Board of New software company. Outside work, Mr. Fink is an active chairman of the Fisher House Foundation, a nonprofit York. She is a member of WX, New York Women Executives member of the Young Men’s/Women’s Real Estate organization that provides homes for those whose family in Real Estate and the International Council of Shopping Association, for which he has served in several leadership members are hospitalized or being treated for injuries. Centers. roles.

January 13, 2014 | Crain’s New York Business | 15 20140113-NEWS--0016-NAT-CCI-CN_-- 1/10/2014 2:31 PM Page 1

THE Real Capital Analytics’ Top Property Sales LIST Biggest commercial transactions in NYC in 2013, ranked by price

TOP FOUR Sq. ft. or Address/ no. of units/ SALES property type/ Transaction price price per Interest 100% value Close submarket (in millions)1 sq. ft. or unit conveyed (in millions) date Buyer Seller

767 Fifth Ave. (General Motors Building) $1,360.0 2,008,237 40% $3,400.0 5/31 Sungate Trust/M. Safra & Co. Meraas Capital/USREO 1 Office $1,693 Midtown east $1,300.0 1,384,090 100% $1,300.0 3/13 Comcast Corp. General Electric 2 (GE Building, NBC office condo) $939 Office Midtown west 650 Madison Ave. $1,294.2 595,000 100% $1,294.2 9/30 Crown Acquisitions/Highgate Holdings/ Carlyle Group/Century Plaza 3 Office $2,175 Vornado Realty Trust/Oxford Properties Midtown east Group 550 Madison Ave. (Sony Plaza) $1,100.0 857,000 100% $1,100.0 3/15 Chetrit Group/Clipper Equity Sony Corp. of America 4 Office $1,284 Midtown east LIST RANK 1 1211 Sixth Ave. (News Corp. Building) $854.8 2,014,062 51% $1,676.0 10/11 Ivanhoe Cambridge/Callahan Capital Beacon Capital Partners/Lehman 5 Office $832 Partners Brothers Holdings ADDRESS Midtown west 767 Fifth Ave. 1345 Sixth Ave./605 Third Ave. $825.0 3,000,000 49% $1,650.0 12/27 Rockpoint Group Estate of Daniel Ludwig PRICE PER SQ. FT. 6 Office $550 $1,693 Midtown west/east 237 Park Ave. (Park Avenue Atrium) $810.0 1,251,325 100% $810.0 10/25 RXR Realty/Walton Street Capital Lehman Brothers Holdings 7 Office $647 Midtown east 1 Chase Manhattan Plaza $725.0 2,215,028 100% $725.0 12/17 Fosun International JPMorgan Chase 8 Office $327 Downtown 7 $684.0 1,245,817 45% $1,520.0 10/9 Norges Bank Investment Management Boston Properties 9 Office $1,220 Midtown west 36 Central Park S. (Park Lane Hotel) $660.0 605 100% $660.0 11/25 Witkoff Group/Jynwel Capital Helmsley Charitable Trust 10 Hotel $1,090,909 Midtown east 825 Eighth Ave. (Worldwide Plaza) $648.0 2,055,583 49% $1,325.1 10/31 American Realty Capital George Comfort & Sons/DRA 11 Office $645 Advisors/RCG Longview/Feil Midtown west Organization LIST RANK 2 425 Lexington Ave. $630.0 748,985 100% $630.0 6/28 JPMorgan Asset Management Hines/Sumitomo Life ADDRESS 12 Office $886 30 Rockefeller Plaza Midtown east PRICE PER SQ. FT. (South Tower office condo) $530.0 737,774 100% $530.0 4/1 Coach Related Cos./Oxford Properties 13 Office $718 Group $939 Midtown west 1440 $528.6 740,000 100% $528.6 12/23 American Realty Capital New York Rockpoint Group/Monday Properties 14 Office $714 Recovery REIT Midtown west 195 Broadway $498.5 914,594 100% $498.5 11/26 JPMorgan Asset Management Beacon Capital Partners/L&L 15 Office $545 Holding Downtown 125 W. 55th St. (Avenue of the Americas Plaza) $470.0 590,628 100% $470.0 5/30 JPMorgan Asset Management Boston Properties/Meraas Capital 16 Office $796 Midtown west 400 W. 63rd St./60 Riverside Blvd. $401.0 345 100% $401.0 4/9 GID OBO CalPERS Carlyle Group/Extell Development 17 (Aldyn & Ashley) $1,162,319 Apartment Upper West Side 625 Madison Ave. (land only) $400.0 n/a 100% $400.0 11/20 Ashkenazy Acquisition 625 Ground Lessor LLC LIST RANK 3 18 Office n/a Midtown east ADDRESS 305-311 W. 33rd St. (the Olivia Apartments) $386.8 333 100% $386.8 11/14 SL Green Stonehenge Partners/CDP Capital 650 Madison Ave. 19 Apartment $1,161,562 PRICE PER SQ. FT. Midtown west $2,175 499 Park Ave. $385.0 302,982 100% $385.0 6/30 American Realty Advisors Hines/Sumitomo Life 20 Office $1,271 Midtown east 700 Eighth Ave. (Milford , land only) $325.0 n/a 100% $325.0 3/8 David Werner/Deutsche Asset & Wealth Rockpoint Group/Highgate 21 Hotel n/a Management Holdings Midtown west 265-275 Cherry St. (Lands End II) $279.2 490 100% $279.2 12/4 L&M Development Partners/Citi Area Property Partners/Pembroke 22 Apartment $569,710 Community Capital/CIM Group Real Estate Downtown 655 Fifth Ave. (Ferragamo Building) $278.0 57,500 93% $300.5 10/7 Vornado Realty Trust Meadow Partners/CPP Investment 23 Office $5,227 Board/LoanCore Capital Partners Midtown east 140 West St. (Verizon headquarters) $274.0 475,000 100% $274.0 11/5 Magnum Real Estate Group Verizon 24 Office $577 Downtown 350 Madison Ave. $261.5 393,687 100% $261.5 3/6 RFR Realty/Qatar Investment Authority Kensico Properties LIST RANK 4 25 Office $664 ADDRESS Midtown east 550 Madison Ave. 1-Partial interest transactions included at the prorated share of the 100% property value. n/a-Not applicable. Real Capital Analytics Inc., headquartered in NYC, is an independent data and analytics firm focused on the investment market for commercial real estate. RCA offers comprehensive data on commercial property transactions that take place PRICE PER SQ. FT. around the world. Visit www.rcanalytics.com. $1,284

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REPORT REAL ESTATE

SWEET TALK: The old Domino Sugar factory in Industrial market heats up Brooklyn has been rezoned for residential towers. Continued from Page 13 residential rezonings and growth in building on the border of Green- three reasons for the surge. For competing uses such as retailing and point and Williamsburg. For two openers, they note that the recover- hotels. In 2001, 37 mostly industri- decades it housed a woodworking ing New York economy has created al blocks of Long Island City were shop, or it did until September, more demand for the types of busi- rezoned for residential and com- when Kalmon Dolgin’s Neil Dolgin nesses that need to be located with- mercial use, and in 2005, nearly 200 and his son Grant brokered a deal to in the five boroughs to serve their blocks along the once-gritty Brook- put consignment-clothier Beacon’s customers’ needs.Think of the food lyn waterfronts of Greenpoint and Closet into it at $40 per square distributor working out of Hunts Williamsburg were similarly re- foot—more than double what the Point in , which keeps zoned. There, residential towers property would likely have fetched shelves stocked throughout the bor- now rise on sites that once housed on the industrial market. oughs, or the service com- factories, like the hulking Domino And lastly, while retail and resi-

pany in Brooklyn that needs to haul Sugar refinery. dential users chip away at the dwin- buck ennis heavy equipment around the city. Farther inland from the East dling supply of industrial space, lit- Compounding the space crunch River,retail stores are eating into the tle if any new property has been been a year earlier, according to De- tial offers received last summer. is the rampant erosion of industrial supply of smaller industrial spaces. added. Those few new structures cio Baio, a partner at Pinnacle. Greiner-Maltz’s Sharone Levy put locations in recent years, owing to Take a 7,500-square-foot brick generally have been snapped up im- Increasingly, soaring rents are it on the market in June and saw of- mediately.One of the few such proj- pushing industrial tenants to turn to fers as high as $134 per square foot. ects under construction, a 132,000- ownership.With mortgage rates still Four months later, the landlord SPACE AT A PREMIUM IN NYC square-foot building at 145-68 at rock-bottom levels, the costs of inked a sales contract at $205 per 228th St. in Springfield Gardens, owning have become ever closer to square foot. Industrial square footage declines while rents climb: Queens, already is 100% preleased, those of renting, noted John Maltz, Seasoned industrial brokers such Total space (in millions of square feet) Average rents (per square foot) according to CoStar. president of Long Island City-based as John Reinertsen of CBRE Group The velocity at which old prop- brokerage Greiner-Maltz. Under insist that actual market conditions 206 200 198 $14.25 erties are leased is no less remark- those circumstances, it makes sense are far tighter than CoStar data sug- able. In the fall, Pinnacle Realty of to own. But with relatively little to gest, and they see no sign of any $9.88 New York marketed a lease on a choose from on the sales market, loosening on the horizon. 10,000-square-foot space in Long would-be buyers are discovering “We have a lot of tenants in re- $4.13 Island City and received multiple that sales-side bidding wars are even zoned industrial property who still offers, starting at $13 per square more intense these days. have leases,” he said. “When they foot,before settling on a tenant who A roughly 30,000-square-foot go, someone is going to wind up de- 1996 2003 2013 1996 2003 2013 offered $15.50. That price is about space in Brooklyn’s Sunset Park veloping those properties [for non- Source: CoStar 10% higher than what it would have was bid up to nearly double the ini- industrial uses].” Ⅲ

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REPORT REAL ESTATE

Q: Where will Mayor Q: Will there be Q: With Wall Street Q: With tourism Q: Will foreign Bill de Blasio enough demand and law firms booming, will lenders and investors affect the market to fill the office struggling, will retail rents play a bigger role in most? and retail space demand for space continue their the market? & opening this year suffer? climb? QA at 1 and 4 World Trade Center, plus Forecasts from the revamped five New York Brookfield Place real estate experts and Fulton Center?

His main impact will be on Demand for new office space is The office-space market is Retail rents remain very Populations all over the world ROBERT affordable housing because he extremely high. A huge currently a difficult one to figure underpriced and have are aging [including ours], KNAKAL stressed this during his percentage of our office stock is out. It seems that most renewals substantial room to grow. As a which is stressing economies Chairman, campaign. The industry will functionally obsolete. The new are for less space than the tenant result, retail space is selling for around the globe. This has led Massey likely be willing to work with buildings in the financial occupied before. Tenants appear much less than it is worth today. to uncertainty about Knakal him on this. But real estate taxes district and Hudson Yards will to be utilizing space differently Retail space has become so sustainability and has created a Realty could be a problem, as the new be overwhelmingly successful, today. valuable that it is now having a flight of capital to safety. Our mayor will need revenue to deal as will any other new office and substantial impact on the prices economy and political system Services with the 152 union contracts retail space delivered to the paid per buildable square foot are relatively stable, which is that must be negotiated. I think market. Let’s hope midtown for sites where there is a retail funneling foreign capital into we are all concerned about [a east rezoning makes a comeback opportunity. our market. possible rise in] crime, as and is a bit more flexible with tourism is a key economic regard to its applicability. driver.

First and foremost, the most Downtown Manhattan is The main reason we have seen an Tourism has been one of the great We saw a surge in demand from important responsibility for any changing more rapidly than any increase in vacancies over the success stories for the Manhattan foreign investors in 2013.The leader of the city is the safety of other area. We are already seeing past year has been an increase in economy. It is an important biggest uptick has been from its constituents and visitors. I a significant diversification of inventory.That will definitely driver of the local retail market, Asia/Pacific and the Middle hope that Mayor de Blasio will the tenant base there.This is continue with the completion of but not the only one. Areas that East, with continued strong RON LO be as diligent and thoughtful as particularly true of companies 1 World Trade Center in the are not tourist destinations are appetite from Canada as well as RUSSO the previous administration in having a hard time finding space first quarter. However, we also experiencing healthy retail Europe.This is particularly President, that regard. in midtown south because of a anticipate that after that initial leasing. However, there is no visible in Boston, New York, NY tristate lack of availability or rising rents. spike, vacancies will decline, question that some of the Washington, D.C., San region, We look at downtown as the driven by rising employment in healthiest retail markets are those Francisco and Los Angeles. Cushman & next midtown south—the next many sectors, and I wouldn’t rule where tourism is the strongest, These investors are joining Wakefield market to benefit from the out growth in both the financial and as long as tourism remains forces with local players to co- growth in the tech, advertising, and legal sectors in 2014. strong, retail rents will remain invest, but some are making media and information sectors. healthy. outright acquisitions as well.

I hope there is no negative impact Absolutely! I think the paradigm There is no question that the We see very positive retail We still see New York as the on the city’s recent record on shift downtown is just challenge for our marketplace is fundamentals in Manhattan. leading city for foreign PETER crime. In a city poised to grow beginning. When construction job growth. The market is New York will remain the No. 1 investment globally, whether it RIGUARDI and lift all people, the most is complete, the bridges and adapting to a lack of new jobs destination for tourists in the is among Canadian, Chinese or President, significant factors are safety and a sidewalks finished, the and to firms taking less space country, and the city’s European investors. New York high quality of life. We could use memorial open to the public per employee. However, there population continues to grow. Manhattan is a highly stable operations, more affordable housing, as it and the new transportation are alternative uses for the excess Retail opportunities are more in market, and it remains a great Jones Lang supports a healthy, diverse and hubs open, lower Manhattan is office space, such as hotels, demand. Meanwhile, place to invest. It has been most LaSalle dynamic economy.There are a going to be an even more residential conversions and gentrification and efficient for foreign buyers to number of opportunities to create wonderful place to live, work medical space. It appears that improvements in numerous invest in Manhattan with local affordable housing. It would and socialize. Companies will this will drive the vacancy rate neighborhoods are creating a partners, and this trend will benefit the city enormously if the want to go there. It’s going to down a bit or keep it flat over retail boom in the outer likely continue. mayor is capable of improving become the place to be. the next year or so. boroughs. that situation.

We’ve gotten a smart, pro- It will take some time to lease— Wall Street’s being on the Quality-of-life issues, not to China in the past three years business administration with a except the retail space, which sidelines has given other tenants mention crime and terrorism, bought or financed more than long-term outlook. Change is seems well on its way to being room to grow. Companies in can turn tourism on a dime. If $5 billion in assets. Germany, JOHN P. likely to make people full. We are tracking more than technology, new media, biotech, Mr. de Blasio is vigilant in the U.K., Kuwait MAHER uncomfortable. But Mr. de 60 tenants looking for nearly 20 etc. have given the city new keeping New York safe and and South Korea follow. Executive Blasio is smart. Notwith- million square feet. Competition diversity.That said, expect friendly, tourism and retail will Interestingly, Canada is the vice standing the rhetoric, he is fierce, but the great downtown vacancies to be slightly higher remain strong. While tourism- No. 1 acquirer or lender, nearly president, recognizes that New York is in properties like the new World this year, going to 12.5% from based retail may continue to raise doubling the financing of the CBRE the best condition ever. The Trade Center and Brookfield today’s 12.2%. But the softness rents in traditional locales, new next-closest country. Foreign Group Inc. mayor will see that many of the Place can now compete on will be less about Wall Street and retail districts are the next story. investors will continue to have policies, procedures, personnel something more than price. law firms than new supply Westfield’s work at the World an extraordinary role, and are and investments that the There’s a new, vibrant down- coming on line and all firms Trade Center, Brookfield Place now frequently choosing to be Bloomberg administration put town that enhances the quality looking to densify. and Hudson Yards is highly direct investors. in place are still needed. of the occupancy experience. anticipated.

The city’s economic engine must There’s more than enough It depends. Those submarkets Yes. Ground-floor retail space is Yes. The elephant in the room MICHAEL continue to be stoked, and demand, but those properties that cater to the [older industries the most supply-constrained is China. Chinese investors are T. COHEN today’s engine is predominantly will be competing with Hudson like finance] will now target commodity in our industry. As sitting on piles of dollars and President, fueled by the technology, Yards and midtown.This is a growing sectors, such as tech, long as New York City learning how to maneuver tristate communications and game of musical chairs. When media, entertainment, etc. We continues to grow and attract around their export controls. region, entertainment sectors. The new the music stops at the end of have already begun to see some shoppers from all over the They will certainly become Colliers mayor needs to focus on the the year, some of this space will migration out of the super- globe, retail will continue to major players in the global real International necessary steps to make sure be leased and some will be heated midtown south and appreciate in price. estate market, and their those industries continue to be vacant. In addition, there will be Hudson Yards markets into the presence in New York City has attracted to the city, and to newly created and pending financial district and the mid- just begun to be felt. In thrive. It’s all about jobs. vacancies, as tenants who have town core.This out-migration addition, New York continues committed to the financial has the potential to offset or to be attractive to Western district and Hudson Yards leave weaken the blow [of slower investors. behind their old space. growth among financial tenants].

18 | Crain’s New York Business | January 13, 2014 Special Advertising Section

PS001_CN_20140113.indd 1 1/9/14 3:12 PM New York’s Real Estate Community: Like No Other Special Advertising Section

A NOTE FROM OUR PUBLISHER The real estate industry in New York City is unlike any other in the world: spectacular architecture, iconic buildings, a storied skyline and a consortium of talented professionals who all coalesce to create a bustling and philanthropic business community. To celebrate this distinct group, Crain’s Custom Connections Studio has created this special section, dedicated to showcasing what makes this community tick. In the first article, which starts on Page S4, Crain’s Custom Connections Studio will take a deep look at the philanthropy of the real estate industry, and how marquee-name CEOs and presidents are giving back to their city in the form of generous donations and stunning renovations. We then look on Page S6 at REBNY’s pivotal role in the real estate industry - from creating a sense of community and advocating for its needs to providing educational programs and curating a robust database of real estate information. The last section is a series of interviews with real estate professionals who discuss their thoughts

Special Advertising Section on the industry, their ideas for the year ahead and how the real estate landscape will continue to evolve in an ever-changing marketplace. We hope you enjoy New York’s Real Estate Community: Like No Other, and if you have any thoughts or comments, please reach out to us. We love hearing from our readers. Best,

Jill Kaplan V.P. & Publisher Crain’s New York Business

TABLE OF CONTENTS

S2 Introduction S17 TF Cornerstone S3 New York University S18 Goulston + Storrs S4 In New York City, the Real Estate Industry’s S19 Cushman & Wakefield Philanthropy is a Matter of Course S20 Douglas Elliman S5 U.S. Green Building Council S21 EVO Real Estate Group S6-10 The Real Estate Board of New York: Serving a Community Vital to the City’s Prosperity S23 The Vortex Group LLC S7 Avison Young S25 Paragon S8 Paramount Building – S26 The Marino Organization S9 3 Hudson Boulevard S27 Sherwood Equities S11 Lee & Associates S29 Jack Resnick & Sons S12 Moinian S30 Handler Real Estate Organization S13 Emerge 212 S31 PI Capital S14 CBRE S33 Jones Lang LaSalle S15 The Durst Organization S35 SL Green S16-36 Interviews with Industry Executives and Veterans S37 Silverstein Properties

New York’s Real Estate Community: Like No Other is published by Crain’s Custom Connections Studio. For more information, please contact Trish Henry at (212) 210-0711 or [email protected]. The digital edition can be viewed online at crainsnewyork.com/realestate2014. S2

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IN NEW YORK CITY, THE REAL ESTATE INDUSTRY’S PHILANTHROPY IS A MATTER OF COURSE

The city’s iconic museums, performing arts centers and non-profits all benefit from a generous real

estate community The real estate titans who develop and manage the the KIPP NYC College Prep, a charter high school in buildings that define New York City are also pillars of the Bronx. The foundation has also raised nearly $80 philanthropy. They sustain and strengthen a wide-range million over the last quarter century to fund the grants of non-profits by not only providing generous financial for its projects. support, but also sharing their resources and expertise. Annual unrestricted contributions from real estate At , a $10 million gift from Judith Res- leaders total about $50 million for UJA-Federation of nick and Burton Resnick – chief executive officer at New York, said Mark Medin, a senior vice president. Jack Resnick & Sons, Inc. – is part of the more than That helps 100 agencies across the metropolitan area $205 million raised towards the $224 million renova- provide human, educational and leadership services. tion of the Studio Towers atop building. The overhaul, to be completed this year, includes new “The real estate community is among the most, if not ensemble rooms, practice rooms and teaching studios, the most, committed, long-term philanthropic element said Susan Brady, director of development at Carnegie of the New York Jewish community when it comes to Hall. the UJA- Federation as with much of the New York philanthropic community,” Mr. Medin said. Similarly, at Lincoln Center, Tamar Podell – the senior vice president of planning and development – called Larry Silverstein, the chief executive officer of Silver- its 40-year-old real estate development council “a true stein Properties, is among the major players “who give partner in our evolution and development.” The council themselves as mentors, leaders and role models to has raised more than $23 million for the arts organiza- encourage others to become active in supporting UJA,” tions and training academies on the 16-acre campus. Mr. Medin added.

“They made a huge difference, providing unrestricted At the newly expanded Queens Museum in Flushing operating support” that keeps the lights on and helps Meadows-Corona Park, a fundraising campaign asks Lincoln Center bring performing arts programs to developers to “ adopt” for “tens of thousands of dollars” schools, libraries and other communities, Ms. Podell or add models of their new buildings to the 895,000 said. structures in the museum’s 9,500-square-foot Pan- orama of the City of New York, said , Support from the real estate industry to help the Robin president and executive director. Hood Foundation’s 240 poverty-fighting organizations “is immeasurable,” said Susan Sack, the managing The campaign, which supports educational program- director of real estate. “The real estate community has ming, “has been quite attractive to the real estate com- come in, time and time again,” with expertise to nego- munity,” he said. To date, the real estate industry has tiate a lease, design a building or find the right contrac- brought in about $30,000 of the $100,000 raised. tor, Ms. Sack added. And in choosing to renovate the miniature Battery Park Pro bono help from The Georgetown Company, a City or build a Lilliputian model of the new Yankee Sta- developer, along with reduced fees from the architec- dium, the real estate community upholds its tradition tural firm Gensler and the design consultancy Penta- of enriching the city with its visionary philanthropy. gram, made it possible last fall for Robin Hood to open

S4

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CN016378.indd 1 1/7/14 10:29 AM New York’s Real Estate Community: Like No Other Special Advertising Section

THE REAL ESTATE BOARD OF NEW YORK: SERVING A COMMUNITY VITAL TO THE CITY’S PROSPERITY

REBNY wears countless hats on behalf of the real From the two-family homes that dot to “We are non-partisan and support candidates that are the that line the island of Manhattan, the pro-good job creation and pro-environment that would estate industry – city’s real estate industry continues to leave its enduring generate investment for the city of New York,” said signature on residential and commercial landscapes. Mr. Spinola.

from teacher to Fostering a sense of community within the industry And with real estate accounting for 34 percent of the and lending a voice to their concerns in its working locally-generated tax revenues, “the city is dependent advocate to reporter relationships with the city and state – as well as provid- on the real estate industry,” Mr. Spinola added, “and we ing the information, professional tools and networking are dependent on the city. Our objective is to make sure gatherings critical to development, ownership, manage- the city continues to grow so that the 34 percent can ment and brokerage – is the 118-year-old Real Estate continue to rise.” Board of New York (REBNY). A GUIDE TO REBNY’S SERVICES “We bring together every element of real estate – resi- dential and commercial brokerage, owners, managers, Meeting the Industry’s Needs financial institutions, attorneys, architects and plan- A multi-faceted association, REBNY provides a pletho- ners,” said REBNY President Steven Spinola. “And at ra of services. Here’s a snapshot of its activities: different times, every element is sitting in the room, Brokerage Services oversees all issues and meetings sharing their efforts and making it a better and more associated with commercial and residential brokerage. professional industry.” Within commercial and residential brokerage are more As a trade organization, REBNY enables members to than 27 standing committees organized by geographic stay abreast of issues and trends important to their location, according to Eileen Spinola, senior vice presi- work. Its efforts encompass running accrediting licens- dent of brokerage services and education. Meetings are ing programs, seminars and panel discussions, as well opportunities to share timely information about devel- as producing real estate market reports. And last year, opments or trends in specific areas and exchange ideas it implemented a transmission system that updates for strengthening or overcoming a challenge in the shared residential listings every hour. locale. The meetings also facilitate networking among As an advocacy organization, REBNY articulates the members working in those locations. real estate community’s concerns, providing input in Among its other efforts, commercial brokerage bestows the city’s direction and policies, from recommending awards for “The Most Ingenious Deal of the Year for incentive programs that helped in rebuilding Lower Sales and Leasing,” “The Most Ingenious Deal of the Manhattan after 9/11 to proposing ways to protect Year for Retail” and “The Most Promising Commercial buildings from storms following Hurricane Sandy. Sales Person (Rookie) of the Year.” Additionally, “The REBNY’s advocacy work is informed not only by its Louis Smadbeck Memorial Broker Recognition Award” members’ experiences, but also by top experts in vari- pays tribute to a commercial practitioner for lifetime ous fields, such as planners and attorneys specializing achievement. For commercial retail, REBNY bestows in zoning issues. two “Most Ingenious Deal of the Year” awards – one Last year and for the first time ever, REBNY – through for creativity and the other for impact upon an area. its Jobs for New York committee – actively supported Within the residential division, REBNY presents “The 22 city council candidates in local races, with 18 elected Most Ingenious Deal of the Year for Sales and Rent- to office. als Award,” “The Henry Foster Lifetime Achievement

(continued on S10) S6

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CN016409.indd 1 1/9/14 11:51 AM New York’s Real Estate Community: Like No Other Special Advertising Section

(continued from S6) Award” and “The Most Promising Residential Sales Publications produces Diary & Manual, an annual Person (Rookie) of the Year Award.” book that includes REBNY committees, a complete ros- ter of REBNY members and the organization’s services, Education encompasses professional development and also covers issues like code of ethics and practices initiatives, including a formal continuing education and land-use regulations. The department also pro- program for licensed agents and qualifying courses duces the annual journal for the gala banquet, which it to become licensed agents. It also offers coursework organizes, too. for attaining the designation of New York Residential Specialist and Certified Negotiation Expert. Plans are Public Affairs collaborates with government affairs underway to launch coursework for Certified Buyer and other departments to advance issues important Representative in the spring and Certified Commercial to REBNY’s membership, according to Jim Whelan, representative in the fall. senior vice president of public affairs. The department addresses big picture policy and political issues facing Management Services keeps members informed on the industry, including assembling coalitions of diverse important matters – from best practices to new regula- members to partner on common priorities, such as job tions – through committee meetings, special seminars creation, landmark reform and smart-growth policies. and guest speakers. And with REBNY members providing the lion’s share of private-sector unionized construction jobs and Last year, REBNY formalized the new sustainability unionized building service workers, Public Affairs is committee, whose activities range from advising the developing additional strategies for helping to facili- city on pertinent issues and bills to supporting a 30 tate the creation of good jobs and housing for all New percent reduction in carbon emissions, according to Yorkers. Angela Pinsky, senior vice president of management services. Research offers members not only a database of real estate information, but also prompt responses to phone As a primary liaison between different levels of govern- calls on everything from a property’s size and tax as- ment and owners and managers, management services sessment to its landmark status. It also issues a quar- assists city agencies in formulating new policies and terly, citywide residential sales report and a bi-annual regulations by providing additional expertise. The retail report on major Manhattan corridors – and last department also helps members navigate different year, it created two reports on New York City land- agencies for their individual projects, and it pursues mark-designated areas that showed impact of land- policy reform to address systemic concerns. marking on housing development. The division looks forward to creating positive and Looking ahead, research will focus on housing produc- open relationships with the new mayor and the city tion, with particular attention on developing affordable council, said Ms. Pinsky, and also submitting proposals units. to facilitate the industry’s ability to satisfy the mayor’s property development agenda. “It’s an important city need, and important for our industry to build housing that meets that need,” Membership expedites applications to join REBNY said Michael Slattery, senior vice president in charge and responds to members’ inquiries. Within REBNY, of research. there are different levels of membership, but “there’s something available for anyone who wants to join,” said Maryann Aviles, vice president of membership and publications. S10

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CN016298.indd 1 11/29/13 12:35 PM New Year

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CN016390.indd 1 1/7/14 10:39 AM TWe arehank grateful to our tenants and the New YYoork brokerage communityu for your support during the past year.

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CN016394.indd 1 1/7/14 10:43 AM New York’s Real Estate Community: Like No Other Special Advertising Section

INTERVIEWS WITH INDUSTRY EXECUTIVES AND VETERANS The real estate community is made up of a vast number of professionals who span multiple verticals and each have unique skill sets that bring value to their organization. In this section, Crain’s Custom Connections Studio interviewed past REBNY rookie of the year award winners, executives and veterans of the New York City real estate scene and asked them to share their thoughts on market opportunities, predict upcoming challenges and growth potential, sound off on the intersection of real estate and technology and more. Additionally, these real estate leaders share their personal stories and advice, such as what drew them to the New York City sphere, and how clients can pinpoint the perfect broker for their specific needs. Read invaluable wisdom from leaders like Randy Modell, Investment Sales Professional at Ariel Property Advisors; James Nelson, Partner, Massey Knakal; David Stockel, Associate Director, Cushman & Wakefield; Stephen C. Winter, Vice President, Related Companies; and Simon Ziff, President, Ackman-Ziff.

What prompted your entry into real estate? What are the top three qualities clients should con- During college, I spent my summers interning at a real sider when searching for a broker? estate company and fell in love with the physical, tangi- Firstly, and most importantly, clients should find ble characteristics of the industry. You can see it, touch someone who exhibits honesty and integrity. Secondly, it and improve it – and actually see the results. they should seek a broker who is hungry and eager to succeed on the client’s behalf. Thirdly, clients should What’s the largest deal you’ve done in your career so look for a successful track record of negotiating and far? closing transactions. I’m working on it now, so I can’t actively discuss the deal, but prior to this my largest was the sale of a What advice would you give to someone who is inter- 130,000-square-foot office building at 160 Fifth Avenue. ested in becoming a real estate broker? Find a senior broker who is honest, well-known in the Who is your role model in the industry? Why? industry and willing to take on and mentor a junior I admire the self-made individual—anyone who started broker. The knowledge and guidance of a veteran is an at home plate without contacts, family backing or unmatched resource when starting off in the real estate special connections, but managed to build a successful industry. Ariel Property career in real estate. Bio Advisors How is being a broker in New York City different Randy Modell joined Ariel Property Advisors as a Vice from being a broker elsewhere? President of investment sales in 2012. He is responsible The competition in New York City real estate is fierce for executing sales of the company’s exclusive listings – definitely more so than in other major metropolitan and business development initiatives in Manhattan areas around the nation. To succeed as a sales profes- below 96th Street. sional you must be tenacious and continually striving to be the best. Mr. Modell began his real estate career at ABS Partners in January 2001 where he assisted the firm’s principals How is technology changing the work you do? in all aspects of acquisitions, leasing, and management Technology enables me to gather the latest market for their in-house portfolio, and handled numerous information, stay organized and work deals more effi- investment sales and retail and office tenant repre- ciently on a daily basis. sentative assignments. He also served as a consultant for several high net worth clients of the firm, assisting What neighborhoods in the city represent hidden them with leasehold and minority interest valuations RANDY gems, and why? and strategies. The Upper East Side, from Lexington to the East River, MODELL, offers a great deal of opportunity for land assemblages In 2006, Mr. Modell’s brokerage activity was recognized and development. The avenues are zoned with a high by the Real Estate Board of New York (REBNY), which Floor Area Ratio (FAR), and the vast majority of the presented him with the coveted Young Broker of the properties aren’t landmarked or located in a historic Year Award. INVESTMENT district. After leaving ABS in 2010, Mr. Modell joined Extell What are the biggest opportunities/challenges the Development where he assisted developer Gary Barnett SALES real estate community faces in 2014? in site assemblages, tenant buyouts, and off-market The biggest challenge will be interest rates—when acquisitions. they will rise, how quickly, and how that will impact PROFESSIONAL the market. The biggest opportunity will be economic Mr. Modell earned a master’s of science degree in Real growth, which has picked up over the last several Estate Development from the Columbia University quarters and could help property values despite in- Graduate School of Architecture, Planning, and Preser- creasing rates. vation, and a bachelor’s degree in Finance from Yeshiva Ariel Property University. He is a member of the Young Men’s/Wom- What’s the outlook for the residential market in en’s Real Estate Association of New York and REBNY, Advisors 2014? where he also has served as an instructor for continu- The population of New York City is growing, so the ing education courses. demand to either rent or buy housing will remain great in the New Year. The challenge, then, will be develop- Originally from Michigan, he lives with his wife, Re- ing enough housing to keep up with demand – and becca in the Upper West Side of Manhattan. He can be also offering housing alternatives that meet a variety of reached at 212.544.9500, ext 17 or via email at income levels. [email protected]. S16

PS016_CN_20140113.indd 1 1/9/14 4:43 PM WE ARE PLEASED TO ANNOUNCE RECORD-BREAKING 2013 LEASING ACTIVITY THROUGHOUT OUR NEW YORK PORTFOLIO. THANK YOU TO THE FOLLOWING TENANTS & THEIR PARTICIPATING BROKERS.

OFFICE RETAIL CARNEGIE HALL TOWER PARKVIEW INTERNATIONAL INC. 101 MAIDEN LANE CBRE | Silvio Petriello, Nicholas Weld TRES CARNES 152 WEST 57TH STREET Winick | Steven Baker, Kenneth Hochhauser SCOPIA CAPITAL MANAGEMENT LLC J.W. Burke Realty | Jonathan W. Burke ABC MANAGEMENT CORP. Studley | Erik Schmall, Michael Mathias Newmark Grubb Knight Frank 95 HORATIO Howard Kesseler Jr., Jordan Gosin THORNE RESEARCH, INC. BY KILIAN CBRE | Ben Friedland, Rob Kluge, RKF | Karen Bellantoni, Beth Rosen ALTAI CAPITAL MANAGEMENT LP Adam Shultz CBRE | Sinclair Li, Conor Denihan 200 WEST 26TH STREET CHELSEA PEDIATRIC DENTISTRY WALTON INTERNATIONAL ASIAN CENTURY QUEST Winick | Steven Baker, Aaron Fishbein GROUP (USA), INC. CAPITAL, LLC Masserano Real Estate & Consulting | John Masserano Interactive Properties | Michael Elkin CBRE | Ben Friedland, Jared Freede 4545 CENTER BLVD WINVEST ADVISORS I LOVE KICKBOXING ASPERION GROUP LLC NORTH AMERICA, LLC Winick | Steven Baker, Aaron Fishbein Newmark Grubb Knight Frank Murray Hill Properties | Marc Miller RKF | Jonathan Krieger Robin Fisher, Taylor Scheinman WOLVERINE WORLD WIDE, INC. MIMI & MO BELVEDERE CAPITAL Winick | Steven Baker, Aaron Fishbein Newmark Grubb Knight Frank MANAGEMENT LLC Chris Mongeluzo, Eric Zemachson NEW YORK KIDS CLUB Newmark Grubb Knight Frank Winick | Steven Baker, Aaron Fishbein David Falk, Kyle Ciminelli 645 MADISON AVENUE NCO Ltd. | Neal Ohm COMBINATORICS CAPITAL, LLC 60TH STREET QUIK PARK Newmark Grubb Knight Frank Ace Capital | Howard Greenberg Jamie Jacobs, Brittany Silver BASSWOOD PARTNERS, L.P. Newmark Grubb Knight Frank 4610 CENTER BLVD DSA REALTY SERVICES LLC Chris Mongeluzo, Eric Zemachson RBT RESTAURANT MHP Commercial Brokerage Services Winick | Steven Baker, Aaron Fishbein Daniel Lolai FALCONHEAD CAPITAL, LLC Signature Partners | Harris Bulow Jones Lang LaSalle 23 EAST 10TH STREET GAIA REAL ESTATE HOLDINGS, LLC Alexander Chudnoff, Adam Haber MATHNASIUM OF MANHATTAN Newmark Grubb Knight Frank Winick | Steven Baker, Aaron Fishbein WHITEHAVEN ASSET Jamie Jacobs, Aaron Maltz Rice & Associates | Curtis Woodside MANAGEMENT L.P. GEIGER INTERNATIONAL, INC. Newmark Grubb Knight Frank 310-312 EAST 23RD STREET CBRE | Michael Laginstra, Justin Royce Dan Hassett, John Moran, III MASSAGE ENVY Winick | Steven Baker, Aaron Fishbein GREYSTONE & CO. INC. For offi ce space leasing Sabre Real Estate Group | Scott M. Sher Newmark Grubb Knight Frank opportunities, please call Jamie Jacobs METRO PCS Winick | Steven Baker, Aaron Fishbein Matthew T. Leon Kassin Sabbagh Realty | Hy Escava HAIDER CAPITAL MANAGEMENT LLC Newmark Grubb Knight Frank Newmark Grubb Knight Frank Executive Managing Director R&M BANILIVI Arthur Draznin, Hunter Berman 212-372-2041 Winick | Steven Baker, Aaron Fishbein, Richard Smith [email protected] ICE CANYON, LLC 7 EAST 14TH STREET Jones Lang LaSalle | Cynthia Wasserberger, LE CAFÉ COFFEE Palmer “Chip” Sealy, III Randy Abend, Alexis Tener Winick | Steven Baker, Josh Siegelman TF Cornerstone Prudential Douglas Elliman | Robert Knabu LIONEYE CAPITAL MANAGEMENT LLC VP, Director of Office Leasing For retail leasing opportunities, please call CBRE | Brad Needleman 212-984-1767 [email protected] Steve Gonzalez NAGASHIMA OHNO TF Cornerstone & TSUNEMATSU NY LLP Director of Retail Leasing Vortex Group | Rick Marek, 212-984-1768 Tim Freydberg WWW.TFC.COM [email protected]

CN016398.indd 1 1/7/14 5:02 PM We salute

®

and the 2014 Awards Honorees

for their contributions to the New York real estate industry

Learn more about Goulston & Storrs. Scan the QR Code with your smart phone.

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DAVID STOCKEL ASSOCIATE DIRECTOR Cushman & Wakefield

What prompted your entry into real estate? simultaneously, or utilizing tools such as LinkedIn I was initially planning on interning at a financial and Facebook to network and get in touch with new institution after my sophomore year of college, but the prospective clients, technology enables me to work internship fell through. I spoke with several people efficiently and accomplish more each day. close to me, and a family friend mentioned commercial real estate. He put me in touch with a couple executives What neighborhoods in the city represent hidden at different brokerage firms and I ended up interning in gems, and why? the business for a handful of summers, learning what a I believe the Times Square South neighborhood pres- dynamic work environment it was. I initially interned ents tremendous value. With the tech firms and the rest in research and had some interaction with office leasing of the Technology, Advertising, Media and Informa- brokers, which was when I realized that office leasing tion (TAMI) sector we work with getting pushed out specifically was of most interest to me. I started work- of Midtown South due to price and availability. Times ing at Cushman & Wakefield in January of 2007 and Square South has become an area with more favorable have been here since. pricing, great amenities and transportation, and great loft buildings that allow for a variety of creative office What is the largest deal you have done in your career installations. so far? My team represented C.V. Starr & Co. (now known as What are the biggest opportunities/challenges the Starr Companies) in their New York headquarters re- real estate community faces in 2014? location/expansion for about 140,000 rental square feet I believe the new West Side office developments offer in 2009. I believe it was the seventh largest relocation great opportunities for companies who want to be in throughout New York City that year. a fresh neighborhood with brand new office supply, while still having convenient transportation and great Who is your role model in the industry? Why? amenities. For large users, there seem to be excellent I don’t know that I have one role model in the industry, branding opportunities, as well. but a couple people I would name include John Picco, a Cushman & Wakefield Executive Director, for his One challenge we have encountered is the lack of professionalism and industry knowledge, and Peter Van growth in the financial sector compared to past years. Duyne, a Cushman & Wakefield Executive Director, Given that this sector has historically been the largest, for his creative thinking and problem solving. My role there is some concern as to what effect that will have on model in life has always been my father. the market overall. Some of the ‘60s and ‘70s skyscrap- ers that traditionally housed these financial institutions How is being a broker in New York City different could face some leasing challenges next year. from being a broker elsewhere? The first difference that comes to mind is the complex- What are the top three qualities clients should con- ity of the New York City office market. Being a broker sider when searching for a broker? involved in corporate work in other markets within The top three qualities a client should consider when and outside the U.S., I have noticed that the business searching for a broker include choosing a reputable terms and leases have a higher level of sophistication firm, choosing a broker that’s experienced and well- here. The other glaring difference is the size of the New versed on the commercial real estate market, and York City market. With an office inventory around 400 choosing a broker that you’re comfortable with. One of million square feet, we actually have three sub-mar- our most successful brokers once told me “at the end kets (downtown Manhattan, and of the day, it is about whether or not you trust your Midtown South) that are comparable in size to other advisor” – and I believe that to be true. cities in the U.S. What advice would you give to someone who is inter- How is technology changing the work you do? ested in becoming a real estate broker? Through my entire career, technology has played an Firstly, getting an internship or applying to a training integral role in how I accomplish my day-to-day tasks. program like Cushman & Wakefield’s new Professional Whether it’s going to meetings and answering emails Real Estate Program (PREP) is a great way to get in (continued on S24) S22

PS022_CN_20140113.indd 1 1/9/14 3:17 PM he Vortex Group is known for Tits focus on tenant representation, keen insight, creative deal-making and proven dedication to the success of its customers and clients.

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CN016377.indd 1 12/26/13 1:51 PM New York’s Real Estate Community: Like No Other Special Advertising Section

(continued from S22)

the door and learn how a full-service commercial real › Represented Amherst Securities Group LP in estab- estate firm operates. Be prepared to work hard, work lishing their first New York office at 444 Madison efficiently and work creatively for a very long time. Most Avenue. people probably do not realize this career is a marathon, › Represented Bryan Cave LLP in the disposition of not a sprint. It is easy to work long days, make a ton of 13,000rsf at 1290 Avenue of the Americas. cold calls and do what is asked of you for six, 12 or 18 months. The key is sustaining that level of work. Those › Represented EisnerAmper LLP in the disposition of who get complacent will have a tough time lasting in 16,000rsf at 6 East 43rd Street. this business given the high level of competition. Education, Memberships and Awards Bio › Bachelor’s Degree in Business Management, Boston David Stockel joined Cushman & Wakefield in January University School of Management. of 2007 as an Associate Broker. Prior to joining the › Member of the Real Estate Board of New York, team with John Picco and Peter VanDuyne, he was fin- Boston University Real Estate Alumni Association, ishing his requirements at Boston University’s School CoreNet Global. of Management. His client list includes C.V. Starr & › Benefit Committee member for the Samuel Waxman Co., Inc., General Reinsurance, Doral Bank, O’Connor Cancer Research Foundation’s Millennial Society for Davies Munns & Dobbins LLP, Bryan Cave LLP, Eisne- the past three years. rAmper LLP, Amherst Securities Group LP, Desmarais LLP, Progress Software, AppNexus, C&K Properties, › Recipient of SL Green’s 2009 “Rookie of the Year” Siemens and The United States Olympic Committee. award, given to the top producing broker with three years’ experience or less. Key assignments › Active member of Israel Bonds New Leadership › Represented C.V. Starr & Co., Inc. in their New York Division. Headquarters relocation of 141,000rsf at in what was the 7th largest new lease in Man- › Active member of C&W’s Innovation Initiative hattan in 2009. Committee. › Represented Desmarais LLP in the leasing of › Active member of C&W’s Emerging Broker Program. 45,000rsf at 230 Park Avenue. › Active member of the Young Men’s & Women’s Real Estate Association.

S24

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CN016387.indd 1 1/2/14 8:10 PM New York’s Real Estate Community: Like No Other Special Advertising Section

SIMON ZIFF PRESIDENT Ackman-Ziff

What prompted your entry into real estate? the residential market – perhaps too much. But I was first drawn to the real estate industry as a student. overall, I would say there is a positive outlook for I took a course at Penn State University in 1985 – Real the coming months. Estate 301 with Professor Ken Lusht – and soon after decided to enter into the real estate arena. What are the top three qualities clients should con- sider when searching for a broker? What’s the largest deal you’ve done in your career Clients should keep these three qualities top of mind so far? when seeking the right broker: first, look for a high-lev- The largest deal of my career isn’t a property transac- el relationship that will invite success and help realize tion, but a business partnership. In 1994, I forged a your vision; secondly, find a broker who displays partnership with Larry Ackman, who currently serves integrity and trust; and third, match yourself with a as the chairman of Ackman-Ziff. strong, functioning team committed to accomplishing your goals. Who is your role model in the industry? Why? There are a great deal of professionals I admire, but What advice would you give to someone who is inter- Larry Silverstein – the chief executive officer of Silver- ested in becoming a real estate broker? stein Properties – and Burton Resnick, chief executive For young professionals just getting their start in the officer of Jack Resnick & Sons, are at or near the top of real estate industry, my advice is simple: work hard to my role model list. They get it – they’re savvy, peerless find a great team. Working with colleagues who are as and consummate philanthropists. talented and passionate as you are will challenge you, force you to learn and operate at your best, and, ulti- How is being a broker in New York City different mately, place you on a path to success. from being a broker elsewhere? There’s certainly a major distinction between being a Bio broker here in New York City and practicing real estate Simon Ziff serves as president of Ackman-Ziff, a posi- elsewhere. The primary difference is the level of sophis- tion he assumed in 1995. Since joining the firm as an tication on the capital side of the business. There’s a lot analyst in 1989, Simon personally has arranged over more that goes into it here. $20 billion of debt, mezzanine and equity financings for some of the nation’s foremost real estate developers and How is technology changing the work you do? owners while solidifying the firm’s relationships with Technology plays a pivotal role in my work – and as it key capital sources. Simon has engineered the firm’s advances, so does the way I conduct business. The real collaborative culture which functions as a magnet for estate industry is using technology to enhance every financial talent. aspect of what we do, from deal management to market research to mining capital sources. Even something Simon received a B.S. in Finance from Pennsylvania as simple as communicating with clients and building State University, and an M.S. in Real Estate Finance relationships is linked to and influenced by new tech- from New York University. In May 2002, New York nologies. University awarded Simon its distinguished Real Estate Alumni Award. He has also been recognized by the What are the biggest opportunities/challenges the Real Estate Board of New York, the Most Promising real estate community faces in 2014? Commercial Salesperson of the Year Award” and six One issue facing the real estate community could be times as the recipient of its “Most Ingenious Deal of the too much momentum. Real estate professionals have Year award. In January 2010 Simon was named a mem- to stay grounded in order to effectively perceive the ber of the Real Estate Board of New York’s commercial market around them and make the wisest decisions board of directors for the second time. possible. In January 2012, Simon received the Louis Smadbeck What’s the outlook for the residential market Broker Award from the Real Estate Board of New York in 2014? in recognition of his positive influence over the past 17 Again, there seems to be a great deal of momentum in years. Please contact Simon at [email protected].

S28

PS028_CN_20140113.indd 1 1/9/14 3:18 PM Behind every successful Building Owner is a host of incredibly talented Brokers and steadfast Tenants. Jack Resnick & Sons thanks the following Firms and the Brokers who represented them, as well as our existing Tenants that renewed their commitment to New York City in 2013.

City University of New York Fairway GS LLC UMG Recording, Inc. 255 GREENWICH STREET 255 GREENWICH STREET 1755 BROADWAY represented by: represented by: represented by: Stephen Siegel, David Hollander & Allen Cooperman of Welco Realty & Jason Pruger Scott Gottlieb of CBRE, Inc. Richard Levine of CBRE, Inc. of Newmark Grubb Knight Frank Epsilon Data Management LLC Lenox Hill Hospital/North Shore-Long Island NYCHSRO Medical Review, Inc. 199 WATER STREET Jewish Health Systems, Inc. represented by: 199 WATER STREET 110 EAST represented by: Stephen Bellwood & John Boyle III Mark Ravesloot & William Iacovelli represented by: of Cassidy Turley of CBRE, Inc. Brian Waterman & Brent Ozarowski of Newmark Grubb Knight Frank Bloom Real Estate Group LLC Olympus U.S. Management LLC 485 MADISON AVENUE The Weisscomm Group, Ltd. represented by: 485 MADISON AVENUE 199 WATER STREET represented by: Scott M. Bloom represented by: of Bloom Real Estate Group Gary Greenspan, Jonathan Serko, Robert Yaffa & Wayne Van Aken Mitchell Barnett, Barry Zeller, David Malawer of Cassidy Turley & Andrew Ross of Cushman & Wakefi eld An American Craftsman, Inc. 205 WEST 57TH STREET Applegreen LLC represented by: Made Man Barbershop, Inc. 485 MADISON AVENUE Francine Kayden 170 WEST 23RD STREET represented by: of Midtown Commercial Real Estate represented by: Shawn S. Harooni & Norman Bobrow Matt Cohen of Norman Bobrow & Co., Inc. of The Lansco Corporation First Avenue Liquors, Inc. First Southwest Company 1516 FIRST AVENUE 485 MADISON AVENUE represented by: Panthera Corporation Shannon McAlister of SLMC Corp. 8 WEST 40TH STREET represented by: represented by: Michael Moorin James Saunders & Earle N. Cutler of Newmark Grubb Knight Frank Beech Hill Securities, Inc. of Newmark Grubb Knight Frank 880 THIRD AVENUE Microdot LLC represented by: 133 EAST 58TH STREET Lisa Kiehl of Jones Lang LaSalle Braun & Goldberg 110 EAST 59TH STREET Ninepeaks Capital Management, LP Zibro Family Management 880 THIRD AVENUE 485 MADISON AVENUE Quick Park Chesapeake LLC represented by: 401 EAST 80TH STREET John Brod & Laura Pomerantz Ban’s Custom Tailor of PBS Real Estate 401 EAST 80TH STREET Neil Kaplan, D.D.S. 133 EAST 58TH STREET Escape Nail Spa, Inc. United States of America 401 EAST 80TH STREET 315 HUDSON STREET Cynthia R. Gomez, D.D.S. Garden of Eden 133 EAST 58TH STREET Cubit Corporation 133 EAST 58TH STREET 170 WEST 23RD STREET

Parkstar Clean Corp. Manhattan Sports Performance LLC Martin Kent, D.D.S. 401 EAST 80TH STREET 133 EAST 58TH STREET 133 EAST 58TH STREET

Carl Meese, D.D.S La Crosta Pizza Restaurant Defi nitions Personal Fitness, Inc. 133 EAST 58TH STREET 430-36 EAST 72ND STREET 133 EAST 58TH STREET

New York Public Library Knickerbocker 72, Inc. Wells Fargo Bank, N.A. 110 EAST 59TH STREET 430-436 East 72nd St. 1755 BROADWAY

Jack Resnick & Sons Owners &Builders Since 1928 110 East 59th Street New York, NY 10022 212-421-1300 www.resnicknyc.com

Proud to be a member of

Proud to be a member of

CN016393.indd 1 1/7/14 10:43 AM TIME OUT… to say “thank you.”

Every now and then, it’s important to take a breabreak from the usual course of businessbus and acknowledge those who havhave helped you get where you are.

As we move into the New Year, the principles and associates of Handler Real Estate would like to stop and say “thank you” to the brokerage community. We’re grateful for all of your support this past year – and we’re pleased to note that our building portfolio is now effectively 100% leased. Thanks for your help in achieving this milestone at our premium properties: 561 7th Avenue, 263 West 38th Street and 315 West 39th Street.

We wish you all the best in 2014 – and we look forward to our future work with the brokerage community. Together, we make quite a successful team.

Contact Scott Galin: [email protected]

212.398.1888 handler-re.com Owner • Developer • Manager

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www.picapitalpartners.com 718-779-4395 • [email protected] 136-18 39th Avenue, 12th Floor, Flushing NY 11354 New York’s Real Estate Community: Like No Other Special Advertising Section

JAMES NELSON PARTNER Massey Knakal Realty Services

What prompted your entry into real estate? with very little inventory in 2013 after the mass selloff It was luck that brought me into real estate. While a se- in 2012 due to the capital gains increase. As a result of nior at Colgate College, I wasn’t quite sure what I want- the supply demand imbalance, pricing rose close to 15 ed to do after graduation. Several of my friends were percent in Manhattan this year. Discretionary sellers headed to New York City, so I figured I’d visit the career began to list their properties, and inventory has now service center and explore relevant opportunities. As risen. Thus, we think it should be ideal circumstances luck would have it, Massey Knakal had their résumé for sales in 2014 – leading to a record year. deadline that day, so I gave it a shot. I was hired to work as an associate for Bob Knakal’s team, which was What’s the outlook for the residential market the best experience I could ask for getting started in the in 2014? business. That was 15 years ago – the rest is history. I’m equally bullish on the residential market for 2014. The Manhattan listing inventory was also severely What’s the largest deal you’ve done in your career depleted after 2012 – it dropped from 7,500 listings to so far? 5,000 in 2013. There is very little new supply coming I sold 102-08 West 57th Street (formerly Shelly’s) to market, as only three percent of the Manhattan to Hilton Land Vacations for $63 million. It was a landscape is available land, so there is virtually nowhere 100,000-plus building square feet site. Today, I’m asking left to build. $139 million for 100 Vandam. If it sells, it will be more than double my largest sale. What are the top three qualities clients should con- sider when searching for a broker? Who’s your role model in the industry? Why? When selecting a broker, an owner should: be confident Bob Knakal and Paul Massey, without question. Even the broker is looking out solely for their best interests, after being in the business for years, there are always even if the advice is not to sell at the present time; pick questions that pop up – and if neither Bob nor Paul a specialist with a proven track record in their neigh- has the answer, there may not be one! They have also borhood, plus a product type; and select the broker developed a platform second to none while receiving with access to the largest pool of buyers and a willing- universal respect in the business. ness to cooperate with the brokerage community.

How is being a broker in New York City different What advice would you give to someone who is from being a broker elsewhere? interested in becoming a real estate broker? I’ve never brokered in another city, but I would imagine My advice would be to specialize in a specific discipline our market is far more competitive. I’ve heard there are – like investment sales, residential rentals or retail leas- over 20,000 brokers who work in New York City. Every ing – in a defined neighborhood. Then, align yourself major firm in the world is here. However, once you with a firm possessing the best platform and training obtain the business, it’s a lot easier to sell, since we have for your chosen discipline. interested buyers from around the globe. A broker in a secondary or tertiary market may not have that benefit. Bio James Nelson brings to every real estate transaction How is technology changing the work you do? he works on the determination to win, the tenacity I was at first skeptical of social media, but now I em- and hard work to succeed, and the confidence that brace it. I use Twitter, LinkedIn and YouTube. I also comes from years of experience in the field. At Massey have a monthly e-blast with my blog. Now, when I Knakal Realty Services since 1998 and a partner since attend an industry event, several people will say, “I saw 2004, James has been involved in the sale of approx- your video” or “I read your blog.” It’s a great way to stay imately 260 properties and loans with an aggregate top of mind for my audience. value of over $1.9 billion. He is also a partner in MKRO I, Massey Knakal’s value-added private equity real What are the biggest opportunities/challenges the estate fund. real estate community faces in 2014? Owners have an opportunity: to sell at premium prices while rates stay low for buyers to lock in. We started

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PS032_CN_20140113.indd 1 1/9/14 3:19 PM INSPIRED

750 Seventh Avenue Prepare to be inspired

Current Availabilities Entire 19th Floor – 16,662 rsf Entire 18th Floor – 17,155 rsf Can combine to create 33,817 rsf Partial 17th Floor – 6,625 rsf

• Distinctive Class A property • Floor-to-ceiling windows • Terrific natural light and views • Efficient side core floor plate • Convenient to Times Square and • Close proximity to world-class amenities • Immediate access to all forms of mass transportation (1, N, Q, R at building entrance)

Jonathan Fanuzzi Charles Gerace Paul N. Glickman Frank Doyle [email protected] [email protected] [email protected] [email protected] 212-812-6044 212-812-5708 212-418-2646 212-812-5759 New York’s Real Estate Community: Like No Other Special Advertising Section

STEPHEN C. WINTER VICE PRESIDENT Related Companies

What prompted your entry into real estate? At Related, everyone from the mailroom to the Chair- I grew up in a hardworking, blue-collar Brooklyn man’s office is a pro. My core team – led by Jay Cross neighborhood – my father was a cop and my mother a and anchored by Bruce Warwick, Philippe Visser, nurse. They were extremely supportive and encourag- Andrew Cantor, Andy Rosen, Michael Samuelian and ing, but our thinking was limited in terms of business Dean Shapiro – are all professionals I truly admire. opportunities. “Successful” people would strive to be- Additionally, Stephen Ross, Jeff Blau and Bruce Beal come doctors or lawyers, so I worked incredibly hard to are individuals I admire deeply. No organization can be land an internship at the Brooklyn District Attorney’s great without great leadership. Office, working there the summer prior to my junior year of college. I had an incredible experience and was How is being a broker in New York City different fortunate to meet a great mentor – I truly admired his from being a broker elsewhere? work, and by the end of the internship, I was sold on Sheer size. The Manhattan Market is 340 million square law school later returning to the DA. feet. To put that into perspective, the amount of avail- able space in Manhattan (46.6 million square feet with At the end of the summer, I asked for my mentor’s a 12.2% availability rate) is higher than the entire in- guidance; much to my surprise, he said, “go make ventory in Downtown Los Angeles (31.3 million square money – I promise you crime will still be here if you feet) or the Dallas CBD (28.8 million square feet). The later decide this is what you want to do.” I took that fluidity and competitive nature of the New York City advice to heart, and throughout my junior and senior marketplace is unmatched. years of college, I researched and canvassed every New York City real estate organization I could find. I landed How is technology changing the work you do? at Massey Knakal the next summer, working within the The information exchange and prospecting of the Investment Sales market. I knew brokerage would allow tenant world has changed drastically. Everything hap- me to learn the business. However, I ultimately believed pens incredibly fast today, and you need to be in front there was more action and opportunity in leasing. I of it all. When Bob Alexander and other legends of the found the Wheel Program at CBRE (an 18-month, brokerage industry were growing up in the business, highly competitive rotational program offered by the they had to read every trade publication that existed to firm), and was fortunate enough to be selected by man- remain up-to-speed on the market and uncover oppor- agement. The rest is history. I became obsessed with the tunities. Today, if you’re not constantly on the phone, real estate business and the New York City market. reading about the marketplace or attending breakfast, lunch and dinner meetings, you’ll get left in the dust. What’s the largest deal you’ve done in your career so far? What neighborhoods in the city represent hidden Negotiating my deal with Jay Cross to join Related. gems, and why? Jay Cross, Hudson Yards and Related were the only My colleagues and the New York City community can opportunities capable of convincing me to leave CBRE. certainly argue I’m biased, but if you don’t think Hud- CBRE was an incredible organization and I learned son Yards is the next big thing in our city, I’d invite you from the top professionals in the brokerage world, but to our offices to see what we’re doing. This year, we will the chance to join Related and work on the lease-up of see tremendous development momentum as we finalize Hudson Yards was unbeatable. plans for a marquee anchor tenant at and commence construction on the platform and the Who’s your role model in the industry? Why? remaining towers in the Eastern Rail Yards. The new #7 I have many. In both business and life, it’s important to subway station will also open this year along with the know how to lead, but it’s equally important to know last section of the High Line. It’s absolutely incredible, how to follow – especially in the commercial real estate and with all of the momentum we have, it is no longer a world, where the learning curve is steep and many ar- dream – it’s a reality. eas require expertise. When I was at CBRE, I looked up to Bob Alexander, John Maher and Paul Myers. They What are the biggest opportunities/challenges the were instrumental in the early days of my career. real estate community faces in 2014? Eighty percent of buildings in New York City are over

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PS034_CN_20140113.indd 1 1/9/14 4:53 PM 810 CORPORATE SEVENTH HEAVEN

SWEEPING CENTRAL PARK VIEWS

FULL TOWER FLOORS OF 17,320 SF EACH

PARTIAL FLOORS FROM 5,798 –11,600 SF

UP TO 11 5,000 SF CONTIGUOUS

Tara I. Stacom, Executive Vice Chairman Whitten M. Morris, Associate Director 810seventh.slgreen.com 212-841-7843 212-841-5026 [email protected] [email protected] Jeremy Bier Vice President Barry J. Zeller, Executive Vice President Scott Silverstein, Senior Leasing Associate 212-216-1722 212-841-5913 212-713-6797 [email protected] [email protected] [email protected] New York’s Real Estate Community: Like No Other Special Advertising Section

(continued from S34) 70-years-old, and Manhattan has added very little new What advice would you give to someone who is inter- product in the past 20 years, especially relative to other ested in becoming a real estate broker? global markets. London in the past two decades has First, I would highly recommend the brokerage busi- added roughly 40 percent of new product to the mar- ness to anyone looking to enter the real estate busi- ket, and Hong Kong has added just below 60 percent ness. The brokerage business is incredibly challenging, of new office product. New York has added less than 10 but for someone starting out, there’s no better way to percent of new product to its office stock. learn. Train yourself to be fearless, but also smart and calculated. Canvass every brokerage firm in the city, big Blue chip corporations demand efficient floor plates, and small. Meet with as many brokers as you can. Align state-of-the-art technology, resilient infrastructure yourself with a great mentor. And once you enter the systems and unparalleled amenities to remain globally brokerage world, keep your head down for at least 18 competitive. We need to continue to add new office months. Learn every building and every tenant that ex- product to allow businesses to run their organizations ists in your market. Read every lease you can get your in New York efficiently and effectively. hands on. Live at the office, protect your reputation and be ethical. What’s the outlook for the residential market in 2014? Bio We have seen very strong demand for high-end luxury Stephen C. Winter, vice president at Related Companies, condominium product, as evidenced by the swift sales was the 2012 winner of the Real Estate Board of New pace at One Madison. We expect that in 2014, the York’s “Most Promising Commercial Salesperson of demand from local as well as international buyers will the Year” award. Prior to joining Related Companies, continue for quality, for-sale residences in marquee Stephen was with CBRE where he completed the locations. The rental market also remains strong, and company’s highly competitive Wheel Program. While we have already seen demand for new rental product as at CBRE, Stephen played an integral role in Baker and evidenced by several inquiries for new space launching Hosteller’s 148,000 s/f renewal and expansion lease soon at 500 West 30th Street. at 630 Fifth Avenue, as well as obtaining prestigious tenants at Boston Properties’ 140,000 s/f vacancy at 399 What are the top three qualities clients should Park Avenue. Stephen holds a B.A. from Sacred Heart consider when searching for a broker? University and graduated summa cum laude. Market knowledge, market knowledge and market knowledge.

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PS036_CN_20140113.indd 1 1/9/14 5:05 PM 1177 Avenue of the Americas 120 Broadway 120 Wall Street 529 Fifth Avenue 7 World Trade Center

Silverstein Properties would like to thank the following brokers for a successful 2013:

Benchmark Properties Coldwell Banker Lee & Associates Michael Beyda Thomas P. Sullivan Kenneth Salzman Francisco Rodriguez Cresa Newmark Grubb Knight Frank Cassidy Turley Jeffrey A. Baker Barry Goodman Harry Krausman Michael McKenna Matthew T. Leon Eric J. Thomas Marcus Rayner Jane Roundell Norman Bobrow & Co. CBRE Ed Wartels Shawn Harooni Jason Frazier Richard Levine Cushman & Wakefield Rosenhaus Real Estate Silvio Petriello David Glassman Richard Rosenhaus Nicholas Weld Joseph Cabrera Ross Zimbalist Whitten Morris Studley Rory Murphy Michael Glavan Colliers International James Searl William Montana Alan J. Desino Ira Schuman David Ervolina Fountain Realty Group Marc Shapses Eric Ferriello David Gomez Robert D. Goodman Vortex Group Robert Kennedy Jones Lang LaSalle Tim Freydberg Leon Manoff Howard Hersch Rick Marek Robert Tunis Brian Higgins Kevin Wong Christopher Kraus Williamson Picket Gross Mitti Liebersohn Brian Kapchan Kenneth A. Siegel

Roger Silverstein Joseph Artusa Jeremy Moss Camille McGratty Executive Vice President Senior Vice President Senior Vice President Vice President 212.732.9700 212.732.9700 212.732.9700 212.551.7376 [email protected] [email protected] [email protected] [email protected]

CN016367.indd 1 12/26/13 1:44 PM P056-58CL_CN_20140113.qxp 1/10/2014 12:36 PM Page 56

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM TELECOMMUNICATIONS PUBLIC & LEGAL NOTICES Notice of Qualification of DUNBARRE Notice of Qualification of COOP & Notice of Qualification of NCWPCS Notice of Application for Authority of INSURANCE AGENCY, LLC. Authority SPREE RETAIL LLC. Authority filed MPL 32 - Year Sites Tower Holdings INNO KNITS LLC filed with the Secy. filed with Secy. of State of NY (SSNY) with Secy. of State of NY (SSNY) on LLC. Authority filed with NY Dept. of of State of NY (SSNY) on 11/19/13. 33 East 33rd Street on 11/07/13. Office location: NY 12/18/13. Office location: NY County. State on 11/27/13. Office location: The LLC was formed in NC on 9/18/07. New York, NY 10016 County. LLC formed in Delaware (DE) LLC formed in Delaware (DE) on NY County. Princ. bus. addr.: 1025 Office loc.: New York County. SSNY 212-532-7400 on 08/22/13. Princ. office of LLC: 919 12/17/13. 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Purpose: Any lawful activity. • FREE ENGRAVING State, 401 Federal St., Dover, DE 89 AVENUE A LLC, a domestic LLC, Purpose: all lawful purposes. • SHORT & LONG TERM 19801. Purpose: Insurance agency filed with the SSNY on 4/22/13. NOTICE OF QUALIFICATION of A.C. RENTALS and insurance marketing services. Office location: New York County. PAULSON ADVANTAGE II L.P. CONSTRUCTION AND RACING LLC. SSNY is designated as agent upon Authority filed with Secy. of State of NY Authority filed with Secy of State of NY Notice of Qualification of JCMC 251-253 whom process against the LLC may (SSNY) on 10/22/13. Office location: (SSNY) on 11/20/13. Office location: LLC. Authority filed with Secy. of State be served. SSNY shall mail process NY Co. LP formed in Delaware (DE) NY County. LLC formed in NJ on of NY (SSNY) on 12/27/13. Office to The LLC, C/O Grossman, P.O. Box on 9/23/13. SSNY designated as 12/11/00. SSNY designated agent location: NY County. 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Arts. of Org. filed with Secy. of (SSNY) on 11/20/13. Office location: against it may be served. SSNY shall County. LLC formed in GA on 7/19/94. 401 Federal St. - Ste. 4, Dover, DE State of NY (SSNY) on 11/26/13. NY County. Princ. office of LLC: c/o mail copy of proc. to NRAI, 111 NY Sec. of State designated agent of 19901. Purpose: Any lawful activity. Office location: NY County. SSNY Hale and Hearty Soups LLC, 75 Eighth Ave., NY, NY 10011, the Reg. LLC upon whom process against it designated as agent of LLC upon whom Ninth Ave., NY, NY 10011. SSNY Agt. upon whom proc. may be served. may be served and shall mail process Notice of Qualification of JCMC 245-247 process against it may be served. designated as agent of LLC upon DE off. addr.: 160 Greentree Dr., Ste. to the GA and principal business LLC. Authority filed with Secy. of State SSNY shall mail process to: The whom process against it may be 101, Dover, DE 19904. 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Princ. filed with Secy. of State of NY known as YORKVILLE MARKETING Notice of Formation of SDF62 nated as agent of LLC upon whom office of LLC: c/o David I. Berley and (SSNY) on 12/11/13. Office location: CONSULTING LLC, filed with the Jamaica Avenue LLC. Arts. of Org. process against it may be served. Marc Berley, 419 Park Ave. South, 15th NY County. Princ. office of LLC: c/o SSNY on 10/29/13. Office location: filed with NY Dept. of State on SSNY shall mail process to the LLC Fl., NY, NY 10016. SSNY designated Gerald T. Renza, CPA, Attn: Gerald T. New York County. SSNY is designated 10/31/13. Office location: NY at the addr. of its princ. office. DE as agent of LLC upon whom process Renza, 200 Midway Rd., #8510, as agent upon whom process County. Princ. bus. addr.: 825 3rd addr. of LLC: Corporation Service against it may be served. SSNY shall Cranston, RI 02920-0510. SSNY against the LLC may be served. Ave., Fl 37, NY, NY 10022. Sec. of Co., 2711 Centerville Rd., Ste. 400, mail process to Kudman Trachten Aloe designated as agent of LLC upon SSNY shall mail process to The LLC, State designated agent of LLC upon Wilmington, DE 19808. Arts. of Org. LLP, 350 Fifth Ave., Ste. 4400, NY, NY whom process against it may be 425 E. 79th St., Apt. 11M, NY, NY whom process against it may be filed with Secy. of State of DE, Div. of 10118. Purpose: Any lawful activity. served. SSNY shall mail process to served and shall mail process to: c/o Corps., John G. Townsend Bldg., 10075. General Purpose. the LLC at the addr. of its princ. CT Corporation System, 111 8th 401 Federal St. - Ste. 4, Dover, DE Notice of Formation of ELLINGTON 18 office. Purpose: Any lawful activity. Ave., NY, NY 10011, regd. agent 19901. Purpose: Any lawful activity. LLC. Arts. of Org. filed with Secy. of Notice of Qual. of 117 Adams Owner upon whom process may be served. State of NY (SSNY) on 12/13/13. LLC, Auth. filed Sec’y of State (SSNY) NOTICE OF FORMATION OF Purpose: any lawful activity. Notice of Formation of 315 Wyckoff Office location: NY County. SSNY 9/12/13. Office loc.: NY County. LLC Rivington F & B, LLC. Arts of Org Holding LLC. Arts. of Org. filed with designated as agent of LLC upon org. in DE 8/20/13. SSNY desig. as filed with Secy of State of NY (SSNY) JASMN STAR LLC, a foreign LLC, Secy. of State of NY (SSNY) on whom process against it may be agent of LLC upon whom process on 9/30/13. Office location: NY County. filed with the SSNY on 11/19/13. 12/23/13. Office location: NY County. served. SSNY shall mail process to against it may be served. SSNY shall SSNY designated as agent upon Office location: New York County. SSNY designated as agent of LLC c/o Rosenberg & Estis, P.C., 733 mail copy of proc. to 1166 Ave of the whom process may be served and SSNY is designated as agent upon upon whom process against it may Third Ave., NY, NY 10017. Purpose: Americas, 27th Fl., NY, NY 10036. DE shall mail copy of process against whom process against the LLC may be served. SSNY shall mail process Any lawful activity. off. addr.: 160 Greentree Dr., Ste. 101, LLC to: 155 Rivington Street, New be served. SSNY shall mail process to: c/o Margate Atlantic, 250 Passaic Dover, DE 19904. Cert. of Form. on York, NY 10002. Principal business to: Cohen & Frankel LLP, 11 E. 44th Street, Newark, NJ 07104. Purpose: Notice of Qual. of 902-908 Bedford file: SSDE, Townsend Bldg., Dover, DE address: 155 Rivington Street, NY, St., Ste. 1800, NY, NY 10017. any lawful purpose. LLC, Auth. filed Sec’y of State (SSNY) 19901. Purp.: any lawful activities. NY 10002. Purpose: any lawful act. General Purposes. 9/17/13. Office loc.: NY County. LLC NOTICE OF FORMATION OF LIMITED org. in DE 5/21/13. SSNY desig. as Notice of Formation of ALP LEARNING Notice of formation of Jackpot Notice of Formation of NLB 2013 LLC. LIABILITY COMPANY. NAME: 1111 agent of LLC upon whom process STRATEGIES LLC. Arts. of Org. filed Productions, LLC Arts. of Org. filed Arts. of Org. filed with Secy. of State LEXINGTON TAQUERIA LLC. Articles against it may be served. SSNY shall with Secy. of State of NY (SSNY) on with the Sect’y of State of NY (SSNY) of NY (SSNY) on 12/31/13. Office of Organization were filed with the mail copy of proc. to NRAI, 111 11/15/13. Office location: NY County. on 11/5/2013. Office location, County location: NY County. Princ. office of Secretary of State of New York Eighth Ave., NY, NY 10011, the Reg. Princ. office of LLC: c/o Amy of New York. SSNY has been desig- LLC: 325 North End Ave., Apt. 14F, (SSNY) on 12/08/10. Office location: Agt. upon whom proc. may be served. Lakusiewicz, 560 W. 43rd St., Apt. nated as agent of the LLC upon whom NY, NY 10282. SSNY designated as New York County. SSNY has been DE off. addr.: 160 Greentree Dr., Ste. 35A, NY, NY 10036. SSNY designated process against it may be served. agent of LLC upon whom process designated as agent of the LLC upon 101, Dover, DE 19904. Cert. of Form. as agent of LLC upon whom process SSNY shall mail process to: The against it may be served. SSNY whom process against it may be on file: SSDE, Townsend Bldg., Dover, against it may be served. SSNY LLC, 497 Greenwich Street, #3C, NY shall mail process to the LLC at the served. SSNY shall mail a copy of DE 19901. Purp.: any lawful activities. shall mail process to the LLC at the NY 10013. Purpose: any lawful act. addr. of its princ. office. Purpose: process to the LLC, c/o Helbraun & addr. of its princ. office. Purpose: Any lawful activity. Levey LLP, 110 William Street, Suite Notice of Qualification of ML 29 Any lawful activity. Notice of Formation of Limited 1410, New York, New York 10038. SICKLES STREET, LLC. Authority Partnership (LP) Name: COMMODORE Notice of Qualification of 155 West Purpose: For any lawful purpose. filed with Secy. of State of NY (SSNY) Notice of Qualification of NCWPCS REALTY ASSOCIATES L.P. Certificate 23rd Street Holder LLC. Authority on 12/13/13. Office location: NY MPL 33 - Year Sites Tower Holdings of Limited Partnership filed by the filed with NY Dept. of State on Notice of Qualification of GALVANIZED County. LLC formed in Delaware (DE) LLC. Authority filed with NY Dept. of Department of State of New York on: 12/11/13. Office location: NY County. BOOKS, LLC. Authority filed with on 12/05/13. Princ. office of LLC: c/o State on 11/27/13. Office location: 12/04/2013. Office location: County Princ. bus. addr.: 805 3rd Ave., 7th Secy. of State of NY (SSNY) on A & E Real Estate Holdings, LLC, 1065 NY County. Princ. bus. addr.: 1025 of New York. Purpose: any and all Fl., NY, NY 10022. LLC formed in 11/26/13. Office location: NY County. Ave. of the Americas, NY, NY 10018. Lenox Park Blvd. NE, Atlanta, GA lawful activities. The names and DE on 7/11/13. NY Sec. of State LLC formed in Delaware (DE) on SSNY designated as agent of LLC 30319. LLC formed in DE on business or residence street address designated agent of LLC upon whom 3/21/13. Princ. office of LLC: 744 upon whom process against it may 11/6/13. NY Sec. of State designated of each general partner is available process against it may be served Greenwich St., Apt, 4, NY, NY 10014. be served. SSNY shall mail process agent of LLC upon whom process from the Secretary of State of New York and shall mail process to: c/o CT SSNY designated as agent of LLC to Douglas F. Eisenberg at the princ. against it may be served and shall (SSNY). The latest date upon which Corporation System, 111 8th Ave., upon whom process against it may be office of the LLC. DE addr. of LLC: mail process to: c/o CT Corporation the limited partnership is to dissolve NY, NY 10011, regd. agent upon served. SSNY shall mail process to Corporation Service Co., 2711 System, 111 8th Ave., NY, NY 10011, is: 12/31/2061. Secretary of State of whom process may be served. DE the LLC at the princ. office of the LLC. Centerville Rd., Ste. 400, Wilmington, regd. agent upon whom process may New York (SSNY) designated as addr. of LLC: 1209 Orange St., DE addr. of LLC: 2711 Centerville Rd., DE 19808. Arts. of Org. filed with be served. DE addr. of LLC: 1209 agent of LLC upon whom process Wilmington, DE 19801. Cert. of Ste. 400, Wilmington, DE 19808. Arts. Secy. of State, Div. of Corps., John Orange St., Wilmington, DE 19801. against it may be served. SSNY shall Form. filed with DE Sec. of State, of Org. filed with DE Secy. of State, G. Townsend Bldg., 401 Federal St., Cert. of Form. filed with DE Sec. of mail a copy of process to: c/o The 401 Federal St., Dover, DE 19901. 401 Federal St., Ste. 4, Dover, DE Ste. 4, Dover, DE 19901. Purpose: State, 401 Federal St., Dover, DE Argo Corporation, 50 West 17th Purpose: all lawful purposes. 19901. Purpose: Any lawful activity. Any lawful activity. 19901. Purpose: all lawful purposes. Street, New York, NY 10001.

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TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM PUBLIC & LEGAL NOTICES Notice of Qualification of 280 Meeker Notice of Qualification of 361 Holdings Notice of Qualification of TRAVELERS Notice of Qualification of Elan Notice of Qualification of 1-6 Sears LLC. Authority filed with NY Dept. of LLC. Authority filed with NY Dept. of REAL ESTATE, LLC. Authority filed Pharmaceuticals, LLC. Authority Elmsford LLC. Authority filed with NY State on 10/7/13. Office location: NY State on 12/3/13. Office location: NY with Secy. of State of NY (SSNY) on filed with Secy. of State of NY (SSNY) Dept. of State on 12/12/13. Office County. LLC formed in DE on 9/13/13. County. LLC formed in DE on 10/30/13. 12/10/13. Office location: NY County. on 10/30/13. Office location: NY location: NY County. Princ. bus. NY Sec. of State designated agent NY Sec. of State designated agent of LLC formed in Delaware (DE) on County. LLC formed in Delaware (DE) addr.: 825 3rd Ave., Fl 37, NY, NY of LLC upon whom process against LLC upon whom process against it 12/04/13. NYS fictitious name: on 10/15/1986. SSNY designated as 10022. LLC formed in DE on it may be served and shall mail may be served and shall mail process TRAVELERS BROKER SERVICES, agent of LLC upon whom process 1/31/08. NY Sec. of State designated process to: c/o Synapse Capital to: c/o CT Corporation System, 111 LLC. SSNY designated as agent of against it may be served. SSNY shall agent of LLC upon whom process Advisors, 138 W. 25th St., 11th Fl., 8th Ave., NY, NY 10011, regd. agent LLC upon whom process against it mail process to: The LLC, Attn: Diana against it may be served and shall NY, NY 10001, principal business upon whom process may be served. may be served. SSNY shall mail L. King, Asst. Secy., 300 Technology mail process to: c/o CT Corporation address. DE address of LLC: 1209 DE addr. of LLC: 1209 Orange St., process to Corporation Service Co., Square, 3rd Fl., Cambridge, MA System, 111 8th Ave., NY, NY 10011, Orange St., Wilmington, DE 19801. Wilmington, DE 19801. Cert. of 80 State St., Albany, NY 12207-2543. 02139. Address to be maintained in regd. agent upon whom process may Cert. of Form. filed with DE Sec. of Form. filed with DE Sec. of State, DE addr. of LLC: 2711 Centerville DE: 160 Greentree Dr., Ste. 101, be served. DE addr. of LLC: 1209 State, 401 Federal St., Dover, DE 401 Federal St., Dover, DE 19901. Rd., Ste. 400, Wilmington, DE 19808. Dover, DE 19904. Arts of Org. filed Orange St., Wilmington, DE 19801. 19901. Purpose: all lawful purposes. Purpose: all lawful purposes. Arts. of Org. filed with Secy. of State, with the DE Secretary of State, 401 Cert. of Form. filed with DE Sec. of 401 Federal St., Dover, DE 19901. Federal St., #3, Dover, DE 19901. State, 401 Federal St., Dover, DE 666 COURTLANDT AVE. LLC, a NYC Gratitude, LLC Arts of Org filed Purpose: Any lawful activity. Purpose: any lawful activities. 19901. Purpose: all lawful purposes. domestic LLC, filed with the SSNY on with NY Sec of State (SSNY) on 12/10/13. Office location: New York 11/22/11. Office: New York County. Notice of Qual. of 175 Pearl Owner Notice of Formation of Just Drew, LLC. Notice of Formation of MISS NYC LLC. County. SSNY is designated as agent SSNY designated as agent of LLC LLC, Auth. filed Sec’y of State (SSNY) Arts. of Org. filed with Secy. of State Arts. of Org. filed with Secy. of State upon whom process against the LLC upon whom process may be served. 9/12/13. Office loc.: NY County. LLC of NY (SSNY) on 12/11/13. Office of NY (SSNY) on 7/17/13. Office may be served. SSNY shall mail process SSNY shall mail process to: 1710 1st org. in DE 8/20/13. SSNY desig. as location: NY County. SSNY designated location: NY County. SSNY designated to Mandell Mandell LLP, 3000 Marcus Ave, #121, NY, NY 10128-4902. agent of LLC upon whom process as agent of LLC upon whom process as agent of LLC upon whom process Ave., Ste. 2E7, Lake Success, NY General Purposes. against it may be served. SSNY shall against it may be served. SSNY shall against it may be served. SSNY shall 11042. General Purpose. mail copy of proc. to 1166 Ave of the mail process to: Michael L. Warren, mail process to: Giorgia Tordini, 615 DUMBO URP HOLDING, LLC, a Americas, 27th Fl., NY, NY 10036. DE 115 Central Park West, New York, NY Hudson Street, Suite 1, New York, NY Notice of Formation of Transatlantique domestic LLC, filed with the SSNY off. addr.: 160 Greentree Dr., Ste. 101, 10023. Purpose: any lawful activity. 10014. Purpose: any lawful activity. Private Wealth LLC. Arts. of Org. filed on 11/14/13. Office location: New York Dover, DE 19904. Cert. of Form. on with Secy. of State of NY (SSNY) on County. SSNY is designated as file: SSDE, Townsend Bldg., Dover, DE Notice of Formation of S&J Tang 216 Notice of Formation of EMIL/NAVY 12/18/13. Office location: NY County. agent upon whom process against 19901. Purp.: any lawful activities. Duffield LLC. Arts. of Org. filed with YARD LLC. Arts. of Org. filed with SSNY designated as agent of LLC the LLC may be served. SSNY shall Secy. of State of NY (SSNY) on Secy. of State of NY (SSNY) on upon whom process against it may be mail process to The LLC, 22 Notice of Formation of OCEANWAVE 10/10/13. Office location: NY County. 12/16/13. Office location: NY County. served. SSNY shall mail process to: Cortlandt St., 16th Fl., NY, NY 10007. MANAGEMENT, LLC. Arts. of Org. SSNY designated as agent of LLC upon SSNY designated as agent of LLC The LLC, 520 Madison Ave., NY, NY General Purpose. filed with Secy. of State of NY whom process against it may be served. upon whom process against it may 10022. Purpose: any lawful activities. (SSNY) on 11/22/13. Office location: SSNY shall mail process to: 202 be served. SSNY shall mail process NOT. OF FRMN of Kuafu Hudson NY County. SSNY designated as Centre Street, 6th Fl., New York, NY to: 24 W. 57th St., Ste. 504, New Notice of Formation of Gherardi USA Yards LLC. Art. of Org. f w/ Secy of agent of LLC upon whom process 10013. Purpose: any lawful activity. York, NY 10019, Attn: David Emil. LLC. Arts. of Org. filed with Secy. of STA of NY (SSNY) 11/12/13. OFC against it may be served. SSNY shall Purpose: any lawful activity. State of NY (SSNY) on 12/02/13. LCTN: NY Cty. SSNY is DA upon mail process to Corporation Service Notice of formation of Limited Office location: NY County. SSNY whom PROC AGA it may be served. Co., 80 State St., Albany, NY 12207, Liability Company. Name: NATURE’S J. STREICHER ADVISORY LLC, a designated as agent of LLC upon SSNY shall mail a CY: Kuafu Hudson regd. agent upon whom and at DARLINGS, LLC (“LLC”). Articles of foreign LLC, filed with the SSNY on whom process against it may be Yards LLC, , 22nd Fl, which process may be served. Organization filed with the Secretary 11/12/13. Office location: New York served. SSNY shall mail process to: NY, NY 10036. The Prin. bus. add.: Purpose: Any lawful activity. of State of the State of New York County. SSNY is designated as Barton Nachamie, Esq., Nachamie 1500 Broadway, 22nd Fl, NY, NY (“SSNY”) on 9/30/2013. NY office agent upon whom process against Spizz Cohen & Serchuk, P.C., 425 10036. PUR: any lawful act or ACTY. Notice of Formation of S.M.R.D. location is New York County. The the LLC may be served. SSNY shall Park Ave., NY, NY 10022. Purpose: Estate Planning Law Group, P.L.L.C. SSNY has been designated as agent mail process to: The LLC, 1 any lawful activities. Notice of Formation of 151 DUPONT Arts. of Org. filed with NY Dept. of of the LLC upon whom process Exchange Plz., Ste. 312, NY, NY STREET, LLC. Arts. of Org. filed with State on 10/25/13. Office location: NY against it may be served. The SSNY 10006. General Purposes. HJ REALTY M18 LLC, Arts of Org Secy. of State of NY (SSNY) on County. Secy. Of State designated shall mail a copy of any process to filed with SSNY on 12/09/13. Off. 11/19/13. Office location: NY County. as agent of LLC upon whom process the LLC at 32 Gramercy Park South, NOTICE OF FORMATION OF RAMSEY Loc.: New York County, SSNY desig- SSNY designated as agent of LLC against it may be served. Secy. Of #3C, New York, NY, 10003. SOLUTIONS LLC. Arts of Org filed nated as agent of LLC upon whom upon whom process against it may State shall mail process to: c/o Purpose/character of LLC is to with Secy of State of NY (SSNY) on process against it may be served. be served. SSNY shall mail process Sandra M. Rodriguez-Diaz, 375 engage in any lawful act or activity. 11/21/13. Office location: NY County SSNY shall mail a copy of process to: c/o Richard Kestenbaum, Esq., South End Ave., Apt. 5A, NY, NY SSNY designated agent upon whom to: The LLC, 136-20 38th Ave., Ste. Kestenbaum, Dannenberg & Klein, LLP, 10280, registered agent upon whom Notice of Formation of 888 Old process may be served and shall mail 7J, Flushing, NY 11354. Purpose: to 104 W. 40th St., 20th Fl., New York, NY process may be served. Purpose: Country Road, LLC. Arts. of Org. copy of process against LLC to: 1056 engage in any lawful act. 10018. Purpose: any lawful activity. any lawful activity. filed with Secy. of State of NY (SSNY) Neilson St Apt 1D Far Rockaway, NY on 11/27/13. Office location: NY 11691. Principal business address: Notice of Qualification of MAIDENFORM MATTER STRATEGIC ADVISORS, LLC. NOT. OF FRMN of Kuafu Properties County. SSNY designated as agent 228 Park Ave S #29075 NY, NY LLC. Authority filed with Secy. of Arts of Org filed with Secy of State of LLC. Art. of Org. f w/ Secy of STA of of LLC upon whom process against 10003-1502. Purpose: any lawful act. State of NY (SSNY) on 12/17/13. NY (SSNY) on 10/29/13. Office location: NY (SSNY) 11/12/13. OFC LCTN: NY it may be served. SSNY shall mail Office location: NY County. LLC NY County. SSNY designated agent Cty. SSNY is DA upon whom PROC process to: The LLC, 358 Saw Mill NOTICE OF FORMATION OF ASTON formed in Delaware (DE) on 11/20/13. upon whom process may be served AGA it may be served. SSNY shall River Rd., Millwood, NY 10546. CAPITAL MANAGEMENT, LLC. SSNY designated as agent of LLC and shall mail copy of process mail a CY: Kuafu Properties LLC, Purpose: any lawful activities. ARTICLES OF ORG filed with Secy of upon whom process against it may be against LLC to principal business 1500 Broadway 22nd Fl, NY, NY State of NY (SSNY) on 11/01/2013. served. SSNY shall mail process to address: Matthew Russotti, 420 10036. The Prin. bus. add. :1500 NOTICE OF FORMATION OF Andthem, Office location: NY County. SSNY has Corporation Service Co., 80 State St., Lexington Ave, Suite 2750, NY, NY Broadway 22nd Fl, NY, NY 10036. LLC. Arts of Org filed with Secy of been designated as agent upon whom Albany, NY 12207-2543. DE addr. of 10170. Purpose: any lawful activity. PUR: any lawful act or ACTY. State of NY (SSNY) on 10/28/13. process may be served and shall mail LLC: 2711 Centerville Rd., Ste. 400, Office location: NY County. SSNY a copy of any process against LLC Wilmington, DE 19808. Arts. of Org. NOTICE OF FORMATION OF NOTICE OF FORMATION of White designated agent upon whom to principal business address: 15 filed with DE Secy. of State, 401 KIESERMAN TRADING,LLC. Arts of Square Art Collection, LLC. Articles process may be served and shall Broad Street, #2210, New York, NY Federal St., Ste. 4, Dover, DE 19901. Org filed with Secy of State of NY of Organization filed with the mail copy of process against LLC to 10005. Purpose: any lawful or act. Purpose: Any lawful activity. (SSNY) on 11/13/13. Office location: Secretary of State of NY (SSNY) on principal business address: 315 E. NY County. SSNY designated agent 11/26/13. Office location: NY County. 86th St, #7PE, NY, NY 10028. Notice of Formation of Tic Toc Tower NOTICE OF FORMATION OF upon whom process may be served SSNY has been designated as agent Purpose: any lawful act. LLC. Arts. of Org. filed with NY Dept. PROFESSIONAL SERVICE LIMITED and shall mail copy of process against upon whom process against it may of State on 12/13/13. Office location: LIABILITY COMPANY. NAME: LLC to principal business address: be served. The Post Office address NOTICE OF FORMATION OF Razor NY County. Sec. of State designated KOSSOFF, PLLC. Articles of 152 E 94th ST apt 3A, NY, NY to which the SSNY shall mail a copy Capital LLC. Arts of Org filed with Secy agent of LLC upon whom process Organization were filed with the 10128-2550. Purpose: any lawful act. of any process against the LLC of State of NY (SSNY) on 3/24/09. against it may be served and shall Secretary of State of New York (SSNY) served upon him is CT Corporation Office location: NY County. SSNY mail process to: c/o Andrew W. on 12/06/13. Office location: New York Notice of Formation of DH VWW NYC System, 111 8th Avenue, New York, designated agent upon whom process Heymann, Solomon Blum Heymann County. SSNY has been designated LLC. Arts. of Org. filed with Secy. of NY 10011. Purpose of LLC: to may be served and shall mail copy of LLP, 40 Wall St., 35th Fl., NY, NY as agent of the PLLC upon whom State of NY (SSNY) on 11/15/13. engage in any lawful act or activity. process against LLC to: CT 10005, principal business address. process against it may be served. Office location: NY County. Princ. Corporation System, 111 Eighth Ave, NY, Purpose: all lawful purposes. SSNY shall mail a copy of process office of LLC: 132 E. 43rd St., #207, Notice of Qualification of TMG ASSET NY 10011. Purpose: any lawful act. to the PLLC, c/o Mitchell Kossoff, NY, NY 10017. SSNY designated as MANAGEMENT LLC. Authority filed Notice of Qualification of 430 217 Broadway, Suite 401, New York, agent of LLC upon whom process with Secy. of State of NY (SSNY) on Notice of Qualification of ARC ACQUISITION LLC. Authority filed New York 10007. Purpose: For the against it may be served. SSNY shall 11/19/13. Office location: NY County. CAFEHLD001, LLC. Authority filed with Secy. of State of NY (SSNY) on practice of the profession of Law. mail process to Corporation Service LLC formed in Delaware (DE) on with Secy. of State of NY (SSNY) on 11/18/13. Office location: NY County. Co., 80 State St., Albany, NY 12207- 11/14/13. Princ. office of LLC: 666 12/05/13. Office location: NY County. LLC formed in Delaware (DE) on NOTICE OF FORMATION OF LIMITED 2543. Purpose: Any lawful activity. Fifth Ave., 8th Fl., NY, NY 10103. LLC formed in Delaware (DE) on 10/22/13. Princ. office of LLC: 430 LIABILITY COMPANY. NAME: 11 SSNY designated as agent of LLC 06/06/13. Princ. office of LLC: 106 Park Ave., 6th Fl., NY, NY 10022. SSNY CARMINE TACOS LLC. Articles of Notice of Formation of QUE PRODUCTS, upon whom process against it may York Rd., Jenkintown, PA 19046. designated as agent of LLC upon Organization were filed with the LLC, a domestic LLC. Arts. of Org. be served. SSNY shall mail process SSNY designated as agent of LLC whom process against it may be Secretary of State of New York filed with the SSNY on 11/19/2013. to c/o Corporation Service Co. upon whom process against it may served. SSNY shall mail process to (SSNY) on 09/23/10. Office location: Office location: QUEENS County. (CSC), 80 State St., Albany, NY be served. SSNY shall mail process c/o Corporation Service Co. (CSC), New York County. SSNY has been SSNY has been designated as agent 12207-2543. DE addr. of LLC: c/o to c/o CSC, 80 State St., Albany, NY 80 State St., Albany, NY 12207-2543. designated as agent of the LLC upon upon whom process against the LLC CSC, 2711 Centerville Rd., Ste. 400, 12207. DE addr. of LLC: 2711 DE addr. of LLC: c/o CSC, 2711 whom process against it may be may be served. SSNY shall mail a Wilmington, DE 19808. Arts. of Org. Centerville Rd., Ste. 400, Wilmington, Centerville Rd., Wilmington, DE served. SSNY shall mail a copy of copy of process to: The LLC, C/O filed with DE Secy. of State - Div. of DE 19808. Arts. of Org. filed with DE 19808. Arts. of Org. filed with DE process to the LLC, 11 Carmine PHILLIPS, GOLD & COMPANY LLP Corps., John G. Townsend Bldg., Secy. of State, Div. of Corps., 401 Secy. of State, John G. Townsend Street, New York, New York 10014. 1430 BROADWAY STE. 803 NY NY 401 Federal St. - Ste. 4, Dover, DE Federal St., Ste. 4, Dover, DE 19901. Bldg., 401 Federal St., Dover, DE Purpose: For any lawful purpose. 10018. Purpose: Any Lawful Purpose. 19901. Purpose: Any lawful activity. Purpose: Any lawful activity. 19901. Purpose: Any lawful activity.

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FOR THE RECORD

Requests qualifications by 4 p.m. on Jan. COMMERCIAL Commission by executives and major 29 for interior renovation and systems ● Charter Brokerage signed a lease for shareholders. Listings are in order of ABOUT THIS SECTION upgrade. To make inquiries or to obtain 26,000 square feet at 125 Park Ave. The transaction value.The information was FOR THE RECORD is a weekly listing of information from the public record that bid documents, contact Phyllis Lopez at tenant was represented by Michael Liss obtained from Thomson Reuters. can help businesspeople in the New York area find opportunities, potential (718) 391-1283 or lopezph@ddc of CBRE Group Inc.The landlord, SL .nyc.gov. Green Realty Corp., was represented in- ● G-III Apparel Group Ltd. (GIII) new clients and updates on competitors. house by Steven Durels and David Morris Goldfarb, chief executive, sold To ask questions or get more information on this section, contact Crain’s ● Department of Environmental Protection Kaufman.The asking rent was $65 per 102,915 shares of common stock at research department at [email protected]. Seeks competitive sealed bids by 11:30 square foot. prices ranging from $69.75 to $72 a.m. on Jan. 21 for lead abatement and between Dec. 23 and Dec. 24, in a removal at department facilities ● Warner Bros. Television Inc. signed a transaction worth $7,233,627. He now throughout the five boroughs. Bid sublease for 12,200 square feet at 1500 directly holds 2,590,010 shares. NEW IN TOWN in Boerum Hill. It is the second location documents are available for an $80 fee. Broadway. The company will take the for the company, whose flagship store is To make inquiries or to obtain bid entire 30th floor. The tenant was ● Celgene Corp. (CELG) Companies that would like to have details at 106 Franklin St. in TriBeCa. documents, contact project manager represented by Lily Lin of AC Lawrence V. Stein, executive vice of openings published should submit Peggy Henderson at (718) 595-4384 or Lawrence & Co. The sublandlord, president, general counsel and corporate descriptions following this format to cnyb- Fabian Heras at (718) 595-4472 or Hewitt Associates, was represented by secretary, exercised options on 13,333 [email protected], with “New BANKRUPTCIES [email protected]. Christopher Adamo of CBRE Group shares of common stock at $78.66 in Town” in the subject line. Inc. The asking rent was $20,000 per between Dec. 23 and Dec. 27, in a The following listings are selected from the GOODS AND SERVICES month. transaction worth $1,048,774. On Dec. ● Bikram Yoga Soho most recent available filings by companies ● Department of Education 23, he sold 12,062 shares of common 404-406 Broadway, Manhattan seeking bankruptcy protection in the Requests proposals by 4 p.m. on Feb. 5 RETAIL stock at $168.19, in a transaction worth The yoga studio opened in TriBeCa. It is Southern and Eastern Districts of New for universal prekindergarten services for ● Duane Reade renewed its lease for $2,028,684. He now directly holds 105 the first location for the company, which York. Information was obtained from U.S. the Office of Early Childhood 14,000 square feet at 198-15 Horace shares. specializes in hot yoga. Bankruptcy Court records available on Education. A copy of the bid can be Harding Expressway in Queens.The Public Access to Court Electronic Records. downloaded at https://vendorportal drugstore will continue to occupy its ● Starwood Hotels and Resorts Worldwide ● Congress Listings are in alphabetical order. .nycenet.edu.To inquire more about the space in the Cross Path Shopping Center Inc. (HOT) 208 Court St., Brooklyn bid document or to make inquiries, in Flushing.The tenant was represented Bruce W. Duncan, president, chief The bar opened in Cobble Hill. The ● Grand Restaurant Group Inc. contact the Vendor Hotline at (718) 935- by Jeff Winick of Winick Realty Group. executive and director of First Industrial menu consists of beer, wine and seasonal 136-20 Roosevelt Ave., Queens 2300 or vendorhotline@ schools.nyc.gov. The landlord, Crosspath Realty, was Realty Trust Inc., exercised options on cocktails. Filed for Chapter 11 bankruptcy represented by Neil Dolgin and Grant 25,000 shares of common stock at $67.84 protection on Dec. 20. The filing cites ● Department of Finance Dolgin of Kalmon Dolgin Affiliates.The on Dec. 27, in a transaction worth ● Dover Street Market estimated liabilities of $1,000,001 to Requests information by 5 p.m. on Jan. asking rent was undisclosed. $1,695,875. On the same day, he sold 160 Lexington Ave., Manhattan $10 million and estimated assets of 24 for a responsible banking bill. To 25,000 shares of common stock at $79.67, The retail marketplace opened in $1,000,001 to $10 million. make inquiries or to obtain bid ● Helen’s Nail Salon signed a long-term in a transaction worth $1,991,750. He Murray Hill. The complex offers seven documents, contact Bashar Assana lease for 1,200 square feet at 426 Lorimer now directly holds 98,857 shares. floors of refreshments and fashions from ● La Bodega on 22nd Street Corp. at (212) 291-4898 or assanab@ St. in Brooklyn.The shop was emerging designers. 710 Fourth Ave., Brooklyn finance.nyc.gov. represented by Fiona Johnson of Fillmore ● CBS Corp. (CBS) Filed for Chapter 7 bankruptcy protection Real Estate.The landlord, Priority Joseph R. Ianniello, chief operating on Dec. 20.The filing cites estimated ● Economic Development Corp. Properties, was represented by Jacques officer, sold 23,364 shares of common COMPANY MOVES liabilities of $50,001 to $100,000 and Requests proposals by 4 p.m. on Feb. 3 Wadler and Vincent Lopez of Kalmon stock at $61.40 on Dec. 23, in a estimated assets of $0 to $50,000. for streetscape improvements on Water Dolgin Affiliates.The asking rent was transaction worth $1,434,622. He now Companies that would like to have details Street in lower Manhattan. To make $25 per square foot. directly holds 144,799 shares. of recent moves published should submit inquiries or to obtain bid documents, descriptions following this format to cnyb- GOVERNMENT CONTRACT contact Maryann Catalano at (212) 312- ● Roundabout signed a nine-year lease ● Time Warner Cable (TWC) [email protected], with OPPORTUNITIES 3969 or [email protected]. for 1,000 square feet at 1100 Madison Ave. Glenn A. Britt, chairman and chief “Company Moves” in the subject line. The luxury resale store and the landlord, executive, sold 10,000 shares of common Following are selected contract Elyachar Properties, were represented by stock at prices ranging from $133.44 to ● The Johnson’s opportunities recently announced by New REAL ESTATE DEALS Joseph Aquino and Faith Hope Consolo $134.14 on Dec. 26, in a transaction 369 Troutman St., Brooklyn York City agencies.To learn how to sell of Douglas Elliman Real Estate.The worth $1,334,426. He now directly The bar opened in Bushwick. The goods and services to city government, visit Companies that would like to have details asking rent was $525 per square foot. holds 158,976 shares. second outpost of the Lower East Side’s www.nyc.gov/selltonyc. For a searchable of their recent transactions appear in these Welcome to the Johnson’s offers a full database of current procurement notices, listings should email descriptions following ● C.R. Bard Inc. (BCR) bar, happy hour and a large front porch. visit www.nyc.gov/cityrecord. Listings are this format to NDholakia @crainsnewyork STOCK TRANSACTIONS Timothy M. Ring, chief executive, sold alphabetical by category and department. .com, with “Real estate transaction” in the 8,313 shares of common stock at ● Joy Gryson subject line, or enter them online at Following are recent insider transactions at $130.92 on Dec. 23, in a transaction 355 Atlantic Ave., Brooklyn CONSTRUCTION SERVICES crainsnewyork.com/submitadeal. Deals are New York’s largest publicly held companies worth $1,088,363. He now directly The accessories designer opened a store ● Department of Design and Construction listed in order of square footage. filed with the Securities and Exchange holds 196,242 shares. Ⅲ

close by, trucks that often spent 100 scanned for a nonexistent parking The city could spur the use of ve- minutes curbside, while drivers spot and then motioned to a CitiBike hicles like cargo trikes by building or Waiting to deliver made numerous deliveries on foot, docking station that stretches down subsidizing large warehouse spaces spent only 30 minutes on average the block before shaking his head. on the East and West sides that Continued from Page 4 $1,000 in tickets in five weeks.That during off-hours, as drivers were “Those are two spots that are just would allow companies such as “It’s great that the Bloomberg never happened before CitiBike. able to park significantly closer to not available anymore,” explained Lucky’s Real Tomatoes, based in administration launched a very real There just aren’t enough spaces.” their drop-off points. Ms. Lee. “It’s frustrating.” It was Greenpoint,Brooklyn,to truck large transition to make use of our limit- But off-hour delivery is not a sil- now 10:17 a.m. shipments into the city and then dis- ed streets in ways that serve a more Off-hour plan ver bullet.Restaurants must pay staff Some companies believe bicycles tribute from those Manhattan de- representative array of needs,” said Meanwhile,for Ms.Lee,the clock to receive deliveries late at night. are not the problem but a potential pots. Similar infrastructure is being Jen Petersen, an independent busi- was ticking. A restaurant on sclerotic “Aside from cost, trucks are noisy, solution. These cargo tricycles— used in cities such as Amsterdam ness consultant who analyzes traffic West 44th Street was expecting a and noisy deliveries at 2 in the morn- some with small engines—can pull and Copenhagen, where cargo bike patterns. “But like any kind of tomato delivery in the next 10 min- ing usually result in noise complaints up to 200 pounds of goods. Corpo- delivery is already commonplace. systemwide change, the current utes. A bicyclist shot by. Mr. Navarro from neighbors,”said Andrew Rigie, rations like UPS are experimenting That would simplify Mr. Navar- rebalancing takes time to adjust to. waited. It was now 10:08 a.m. executive director of the New York with cargo trikes in such old Euro- ro’s job.The deliveryman wheeled his It’s full of opportunities for If this were all happening at 10:08 City Hospitality Alliance. pean cities as Düsseldorf, Germany, hand truck into the Greek restaurant distribution-minded businesses.” p.m., Mr. Navarro might have had The DOT agrees in part with Mr. where many streets are narrow and with tables already set for lunch. He About 80% of the 100,000 deliv- better luck.The DOT has long sup- Rigie’s assessment that there are in- cobblestoned. had left his truck in the no-standing eries made in Manhattan daily go to ported so-called off-hour deliveries, herent issues with off-hour delivery zone of a nearby hotel,where a door- wholesale, retail and food business- even operating a pilot program in but remains committed to expanding Cargo trikes man gave him a five-minute grace es, most of them in midtown, ac- 2010 that included eight delivery the practice throughout the city. In New York, City Harvest has period. Mr. Navarro was late, but a cording to the DOT.And although companies and 25 business locations. “DOT continues to pursue off-hour added three cargo bikes to its fleet of kitchen manager accepted his cargo the city says midtown traffic volume Restaurants and retail stores that delivery efforts, a critical tool in cut- 19 refrigerated trucks. The bikes with a sympathetic smile. has actually stayed steady since participated for a month received de- ting congestion and creating safer, help the nonprofit deliver 126,000 Outside, Ms. Lee kept her eye 2008, traffic times have improved liveries between 7 p.m. and 6 a.m. more livable streets while also aiding pounds of food to 500 community out for traffic-enforcement agents. 6.7% on average. But restaurateurs The findings of the pilot were businesses,” said a spokesman. programs citywide. “We incorpo- Walking back out into the chaos of say they’re experiencing longer eye-opening: Average travel speeds Midtown between Fifth and rated cargo bikes into our fleet to West 44th Street, Mr. Navarro waits for deliveries. Ms. Lee blames from truck depots to a delivery dri- Sixth avenues teems with hotels, make smaller pickups in more con- looked relieved. With his boss the proliferation of bike lanes and ver’s first stop in Manhattan im- restaurants and university clubs con- gested areas, allowing our trucks to around to keep sentry, his day was a CitiBike docking stations. proved by up to 75% compared with stantly receiving deliveries. Mr. move quickly with high-volume little easier.“Today is better,”he said “Parking tickets alone have be- the evening rush hour, and subse- Navarro, exasperated, approached pickups throughout the day,” said with a wry grin,pointing to Ms.Lee come part of how I budget,”she said. quent stops were made 50% faster his destination,a Greek restaurant in Matthew Reich, City Harvest’s vice waiting in the illegally parked truck. “I had one driver pile up about on average. With parking available the middle of West 44th Street. He president of operations. “Today I got Lucky.” Ⅲ

58 | Crain’s New York Business | January 13, 2014 20140113-NEWS--0059-NAT-CCI-CN_-- 1/10/2014 7:17 PM Page 1

Red Bull is my son drinks it,” Mr. no viable treatment for people with Biotech firm faces questions Garr said. ALS, this gives phenomenal hope.” Mr. Kolbert of Maxim Group In any case, growing interest in doubts that Neuralstem will ever be Neuralstem has meant work for its Continued from Page 1 petite for risky stocks as the market The SEC didn’t respond to a re- a significant player in biotech. He investment bankers at T.R. Win- Neuralstem Inc. is the developer flirts with new highs. Biotech is par- quest for comment. said the company has lost its leader- ston & Co., a Bedminster, N.J.- of the potential ALS treatment being ticularly hot, with the sector gaining Neuralstem Chief Executive ship position in potential ALS based securities firm that special- tested on Ms. Moundzouris, whose 50% last year, well ahead of the S&P Richard Garr denies breaking any treatments and lacks adequate re- izes in serving small companies blog post couldn’t have come at a bet- 500’s 30% gain. Wall Street firms securities rules. He said companies sources, and that its research is whose stocks often trade for pen- ter time for the biotech peddled $5 billion worth of are allowed to conduct their ordi- “flawed science.” nies. Its CEO, G. Tyler Runnels, is venture. new shares in these often nary course of business while mar- Neuralstem’s largest shareholder Only one day before $20M super-speculative compa- keting a stock deal, and considering ‘Too early’ with a 3.9% stake, according to her news hit the Web, the AMOUNT of nies last year, according to he wrote about Ms. Moundzouris Mr.Garr contends his company’s Bloomberg data. new capital company announced it raised by Thomson Reuters, the on his company blog last month, he ALS treatment is three years away Mr. Runnels faces a pending ar- had hired investment Neuralstem most since 2000.In the new saw nothing wrong with tweeting from being ready for the market, bitration proceeding brought by a bankers at a small New frenzy, many individuals about her. Mr. Garr said he writes assuming trials continue to show client who alleges “unsuitable trans- Jersey-based firm to help have taken a fancy to Neu- everything that’s published by the success. actions” made between 1998 and raise $20 million in new capital,more ralstem, where about 90% of the company but wouldn’t acknowledge Kay Dickersin, director of the 2012, according to a report with than double its cash on hand. shares are held by retail investors, ac- composing the tweet. Center for Clinical Trials at Johns securities-industry regulators. In A sale of shares could have been a cording to Bloomberg data. Mr. Garr also disavowed any Hopkins University, reviewed Neu- 2008, T.R. Winston was ordered by tough haul,because Maryland-based “There’s lots of excitement about knowledge of the article that ap- ralstem’s ALS trial information af- arbitrators to pay $282,000 in com- Neuralstem is a tiny 13-employee the next generation of cell therapies peared seven minutes after the tweet ter being contacted by Crain’s and pensation to a kindergarten teacher outfit that has piled up $125 million and regenerative medicine,” said on Seeking Alpha, a market news said the purpose of the 18-person who claimed she was defrauded by a in losses since its inception in 1996 Jason Kolbert, a managing director and analysis site that attracts 3.2 mil- trial is to discover how large a dose broker who worked briefly at the and has generated minimal revenue at securities firm Maxim Group. lion unique visitors a month,ranging can be safely administered, not firm and later served prison time, as it tries to develop treatments for “But it’s hard to say what’s real and from Wall Street pros to whether patients improve. according to the teacher’s lawyer, ALS, spinal-cord injuries and what’s not.” interested amateurs. The She said people in such tri- Andy Whiteman. strokes.But hours after Ms.Mound- article, headlined “Posi- 50% als often report feeling “They play fast and loose,” Mr. zouris published her blog post, Neu- ‘Crossed the line’ tive Signs From Neural- GAIN in overall better at first because Badway, the former SEC attorney, stock price for the ralstem offered a link to it on its Twit- In Neuralstem’s eagerness to stem’s Phase 2 ALS Trial,” biotech sector in they’re relieved to know said of T.R. Winston. Mr. Runnels ter account. Minutes later, a lengthy draw attention to its ALS treatment said investors should wel- 2013, compared they’re getting some kind declined to comment. article appeared on a website widely by tweeting about Ms. Mound- come the company’s $20 with the S&P of treatment. Mr. Garr said T.R. Winston first read on Wall Street talking up Neu- zouris’ blog, securities lawyers say it million stock sale because 500’s 30% “Maybe the person raised money for his company in ralstem’s prospects and quoting Ms. violated the rule that says companies “those funds can help who blogged about her ex- 2006,when its shares switched from Moundzouris’ endorsement. can’t release important news when Neuralstem position itself as the perience really is getting better be- the over-the-counter market to the Because there’s no more valuable they’re in the process of raising cash only significant player in a very large cause of the treatment,” Ms. Dick- New York Stock Exchange, and has news for biotechnology investors unless they update their prospectus. ALS market and further develop ersin said. “But it’s too early to say.” helped it raise cash multiple times than evidence that much-anticipated “They crossed the line, clearly,” one of the most exciting pipelines in Ms.Moundzouris,who is 41 and since. He said the firm sold Neural- treatments are actually working, said Ernest Badway,a partner at law the biotech sector.” lives in Tennessee, said she hasn’t stem’s latest stock offering to insti- Neuralstem’s shares jumped 26% last firm Fox Rothschild and formerly a The author, who used the pseu- been compensated by anyone for tutional investors, a sign that Wall week on the New York Stock Ex- Securities and Exchange Commis- donym “Red Bull,” said he’s an audi- writing her blog and isn’t a Neural- Street pros are confident about his change, reaching a near-all-time sion enforcement attorney. tor in the telecommunications in- stem shareholder. Treatment has company’s future. high of $3.75, before retreating a bit Added Barry Goldsmith, a part- dustry in College Park, Md., has no improved dexterity in her right “They’re a boutique merchant on Friday. The company announced ner at Gibson Dunn & Crutcher and affiliation with Neuralstem or its in- hand, and she’s using her ventilator bank and have done very good last Thursday that it had completed former enforcement chief at the Fi- vestment bank,and isn’t compensat- less. “This has not been proven by work,” Mr. Garr said. Ⅲ its $20 million stock offering. nancial Industry Regulatory Author- ed by either. He declined to give his clinical test results yet,but I do know Perhaps it’s a sign of the times.In- ity: “This situation is something I’d name. my body,” she told Crain’s in an LISTEN to a discussion at vestors are rediscovering their ap- want to look at if I were a regulator.” “The only thing I know about email. “Considering there has been CrainsNewYork.com/podcasts

vember,he bought through his fam- Mr. Levy’s most recent purchase Developer wants back in game ily trust five adjacent buildings on on West 28th Street represents a re- West 28th Street for more than $20 turn to retail. million, investing at least $8 million “As far as the future, it’s back to Continued from Page 1 ily accented English. back, Mr. Levy engaged in what ap- of his own money. He is also likely business as a family as a trust,” Mr. the Sheffield that was his undoing. In 2009,Mr.Levy pleaded guilty peared to be more financial chi- to receive tens of millions more in an Levy said. ‘“We’re looking to do Instead, he plans to focus on small to a misdemeanor related to that in- canery. A trust controlled by his ongoing lawsuit against Mr. Swig. more deals like West 28th Street.” fixer-uppers like the ones he bought cident. wife, Sosana Levy, and daughter That court battle is centered on how He’ll have to do it under the when he worked in the garment busi- The courts handed him a far Galit Levy held most of his assets. the two will split $54 million in sur- watchful eye of the AG’s office. ness more than 30 years ago: com- more severe punishment when they Another creditor, Dallas-based prise profits from the conversion of Though Mr. Levy said he has no mercial buildings that he can reno- found him guilty of plundering Lone Star Funds, alleged that Mr. the Sheffield. plans to raze the buildings to make vate and lease to big retail tenants. more than $7 million from a re- Levy had transferred his hold- way for a residential condo tower,he But Mr. Levy also remained un- serve fund at 225 Rector ings to his family to protect Man of the clothes suggests that he could do so legally apologetic and defiant. Place, a condo conversion against collection. “Yair’s money is green, and if he despite the AG’s ban. Key to that He disputed the facts surround- that Mr. Levy eventually Mr. Levy told Crain’s only can find good deals, he’ll be able to contention is the fact that Mr. Levy ing the ban imposed by Attorney handed back to his bank, that he has always sought to buy them just like anybody else and bought the properties through five General Eric Schneiderman. He leaving residents there share the proceeds of his in- be successful,” said Robert Knakal, limited-liability companies, each even argued he could sell condos without heat and hot wa- vestments by giving them to his chairman of real estate brokerage named after the building’s address. again—if he wanted—through his ter in the middle of family. Massey Knakal. The official chief executives of all family trust. winter, according to While Mr. Levy’s lack of Before entering into real estate five are Mr. Levy’s two daughters, written reports at the contrition may not win him full-time in the late 1990s,Mr.Levy Galit and Raphael, ages 40 and 41, Defensive move time. He insists he was sympathy, he wouldn’t was an apparel maker in Israel and respectively. And he said the ice bucket inci- well intentioned in be the first fallen New then in New York’s garment center. A spokeswoman at the AG’s of- dent in 2008 that became fodder for using the reserve fund, York landlord to at- He operated two clothing stores in fice pointed out that during the tabloid headlines was overblown. but that he did so on ‘In the next tempt a comeback. the city and a line of women’s wear summer it had successfully prose- He did not, as most versions of the bad legal advice. (See story, Page 13.) under a brand he founded called cuted notorious Queens developer event have it, hit his former partner “We put millions of few years, “New York is a city Cactus.That experience introduced Tommy Huang and his wife, Alice, Kent Swig with an ice bucket from our own pocket into we’ll be a of endless chances and him to retail real estate. who had been banned, like Mr. a nearby drink cart during a heated the building to contin- opportunity for those His purchase in 2006 of 620 Levy,from selling real estate securi- meeting at the Park Avenue office of ue with the construc- real player’ who are willing to Sixth Ave.—a block-long, Beaux ties. The two were fined a total of Mr. Swig’s lawyer.The ice bucket in tion because the bank dream and work Arts property in Chelsea—is a almost $5 million by the AG for question was used defensively, to stopped giving us —Yair Levy hard,” said David prime example of Mr. Levy’s street re-entering the condo-develop- fend off Mr. Swig, who the 5-foot- money,”Mr.Levy said. Levinson,chief execu- smarts. With partners, he bought ment business by using their grown 6 Mr. Levy said became agitated Mr. Levy eventual- tive of real estate in- that building for about $235 million son, Henry, as a front. during the heated meeting. ly lost control of that vestment firm L&L and sold it for more than $500 mil- “In the next few years, we’ll be a “I am 40 years in this country, property when it went Holding Co., who lion in 2011, after filling a big retail real player back in New York,” Mr. and I never had a problem with no into default. He also handed over does not know Mr. Levy personally. vacancy with a Marshalls depart- Levy said. Ⅲ one,” said Mr. Levy, who immigrat- other buildings he owned, losing It helps that Mr. Levy appears to ment store and the union 32BJ, ed to the U.S. from Israel with his millions of dollars. But when the have millions of dollars of personal which leased almost 250,000 square LISTEN to a discussion at CrainsNewYork.com/podcasts brother at the age of 22, in his heav- tenants sought to get their money wealth left to put to work. In No- feet of office space upstairs.

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THE CUOMO CUTS

ⅷ Lower corporate-tax rate to 6.5%, Tax cuts would flow upstate 0% for upstate manufacturers ⅷ Manufacturers’ property-tax credit ⅷ Kill 2% industrial utility surcharge Mr. Cuomo will seek to reduce praise from others. state and do little to attract busi- Guv’s $2 billion chop the state’s 7.1% corporate-tax rate to “It’s encouraging if this thing nesses to the city, where operating ⅷ 2-year property-tax freeze upstate could lure city biz 6.5%— the lowest in New York holds up,” said Gil Cygler, CEO of costs remain prohibitive. The real ⅷ Middle-class property-tax credit since 1968—while also offering a Brooklyn-based car-sharing com- impact of Mr. Cuomo’s plan would ⅷ Tax credit for renters 20% property-tax credit to manu- pany Carpingo. “I wish it benefited be upstate, where manufacturers ⅷ No estate tax, up to $5.25 million BY THORNTON MCENERY facturers statewide. For manufac- the city a little more. As is, I don’t would operate without any corpo- turers upstate,the corporate income think it’ll affect me too much.” rate tax. That would attract compa- Gov. Andrew Cuomo’s favorite re- tax would be eliminated. Tax expert Roger Blane,an attor- nies from other states but perhaps The corporate rate cut wouldn’t frain at his State of the State address In his address in Albany,the gov- ney and CPA at Hutton & Solomon, from New York City as well. cost the state much, given that cor- last week was, “We are upstate, we ernor hit hard and often on the noted that upstate currently enjoys “Anyone going upstate is going to porate taxes are projected to total $3 are downstate, but we are one.” But theme of opening up the state to new tax advantages over the city. be coming from one of two places,” billion of the state’s $69 billion in tax the tax-cut proposal he touted heav- businesses, asking the Legislature to “Corporations in the city are hit said Mr.Blane.“Either another state revenue this year. ily favors upstate over the metropol- “really send a strong signal to busi- by two taxes,” he said, referring to with a higher rate, or the city.” Some see the governor’s proposal itan area, according to experts. ness,saying this is a different day and the city’s general corporation tax,“so On top of that, Mr. Cuomo’s as a play for upstate votes.Mr.Cygler, Mr.Cuomo’s plan to cut state tax- we are doing it a different way.” by doing business outside the city proposed income-tax credit would for his part, wants to believe the gov- es by $2 billion is a blunt invitation But things won’t be too different you’re already paying less in taxes.” place a two-year freeze on property ernor is serious about small city busi- for businesses to move to New York, for many businesses in the city, In effect, the drop in the corpo- taxes only in municipalities that ad- nesses but can’t shake his suspicions. but there is added incentive to go up- where the proposal drew cheers rate rate alone would provide mar- here to a 2% cap on annual increas- “You just hope this is real,” he said, state, irking some in New York City. from Cuomo allies but measured ginal relief for businesses across the es. New York City has no such cap. “and not some election-year thing.”Ⅲ

pre-K, Mr. Cuomo left daylight for that’s the case,there are votes in both for years was Mr. Silver’s chief poli- negotiation with Mr. de Blasio and houses to do what he wants. Is Cuo- cy adviser and knows Albany inti- Alpha males face off his legislative allies. A resolution mo going to declare, ‘I did my best’? mately. would preserve the governor’s repu- It’s possible. But it’s not likely.” Meanwhile, Mr. de Blasio, or- Continued from Page 3 mention of the pay raises that mu- tation as a competent manager who The governor has wriggled out of ganized labor and the Working ver and state Senate co-leader Jef- nicipal unions expect from Mr. de ended Albany’s dysfunction, an im- political boxes before. Two years Families Party will take their tax- frey Klein support the tax hike for Blasio. age important for his re-election bid ago, having pledged no tax increas- the-rich message to the public in dis- pre-K, and the governor needs the and potential presidential campaign es but facing a budget deficit, Mr. tricts of key state lawmakers to build votes they control to get his own Open for negotiation in 2016. Cuomo deftly passed off a $2 billion momentum for their cause. The agenda passed. Moreover, polls Nor were details given on how Mr. de Blasio may have even tax increase as a reduction by ex- playbook will be familiar: rallies, show pre-K is a hit with voters; the the campaign for a pre-K tax would more at stake. Taxing the rich was a tending a “millionaire’s tax” just be- door-knocking, phone-banking and governor himself now wants it proceed, but Vincent Alvarez, pres- focus of his campaign, and it rein- fore it expired while cutting middle- possibly TV and radio ads. statewide. ident of the New York City Central vigorated liberals, who have since class tax rates. Last year, he and the The WFP recently joined with Mr. de Blasio does have to fight Labor Council and the New York made him their national poster Legislature quietly extended the other left-leaning groups to create the perception among the gover- chapter of the AFL-CIO,didn’t dis- child. Universal pre-K without the surcharge on high earners through People for New York, modeled in nor’s inner circle that he wants to tax count the possibility of withholding tax increase would mean average 2017. The governor has since been part on a past adversary, the Com- the rich not to fund pre-K but to free union endorsements from officials New Yorkers would pay for it, dim- vocal about not revisiting income mittee to Save New York, a former up city money to give unionized who oppose the tax hike, including ming the de Blasio star. taxes, arguing that increases on the business alliance that advertised in workers retroactive raises. Mr. Cuomo. “If Cuomo stiffs him,” said for- wealthy will send them fleeing to support of the governor’s fiscally Contributing to this impression Two days later, the governor em- mer Assemblyman Richard Brod- low-tax states. conservative agenda. is the alignment of most of the city’s braced universal pre-K in his State sky, “I don’t know how he gets As one source who has worked unions behind Mr. de Blasio. Last of the State speech but said nothing through year one.” Two-front battle on past campaigns with Monday in Harlem, union chiefs of the mayor’s tax-the-rich scheme, Mr. Brodsky, a senior fellow at The tax debate will play out on the Democratic-operative-turned- representing teachers, hotel em- nor of Mr. de Blasio himself. Mr. public-policy institute Demos, said two fronts. City and state officials mayor put it, Mr. de Blasio “is a big ployees, health care aides and con- Cuomo’s office said that protocol the fight on taxes will define the leg- will start hashing out their differ- believer in the outside game.” Ⅲ struction workers, among others, was followed,and Mr.de Blasio said islative session in Albany this spring. ences behind closed doors, with Mr. stood with the mayor to voice sup- he wasn’t offended. “It looks like de Blasio has the de Blasio likely to deploy his new LISTEN to a discussion at port for his tax plan. There was no By voicing support for universal Legislature with him,” he said. “If budget director,,who CrainsNewYork.com/podcasts

speaker. “Once she knows you re- nesses, and of a living-wage law to ruin of New York businesses. “It is Council’s new boss spect her views, she listens and cover employees of tax-subsidized possible to share a little better and opens up to your views.” developments. Both measures had still have a vibrant economy,” Mr. Mr. Williams recalled disagree- been watered down by former Lander said. “I think that there’s a Continued from Page 1 ing the Occupy Wall Street protests. ing with Ms. Mark-Viverito, who Speaker Christine Quinn to ap- false dichotomy.” belief that government should com- She has been a loud voice against the represents parts of upper Manhattan pease business interests. Ms. Mark-Viverito, an eight- pel the private sector to help strug- overuse of stop-and-frisk and for and the Bronx,on a proposal for mar- The new speaker, a past sponsor year council veteran, has introduced gling New Yorkers mirrors that of tenants’ and immigrants’ rights. ket-rate buildings alongside afford- of prevailing-wage legislation for bills protecting tenants and victims Mayor Bill de Blasio,whose support The speaker and her allies are able housing in East Harlem but said building-service workers, is also ex- of domestic violence. She chaired was the deciding factor in her win- now trying to calm the business they eventually found common pected to support a de Blasio plan to the council’s Parks Committee, ning the speakership. She was also community’s concerns about her cause. He said Ms. Mark-Viverito force developers to build more af- playing an energetic role without backed heavily by the council’s Pro- politics and activism. Ms. Mark- has been unfairly knocked for a hard- fordable housing. She and the mayor necessarily looking for headlines. gressive Caucus and by organized Viverito declined a request for an charging style that would be cele- are eager to ban carriage horses, too. “There’s been so few dollars for labor, including her former employ- interview, but during her initial brated if she were a male politician. With Ms. Mark-Viverito set to parks, and the ones that do have er, health care workers’ union 1199 press conference as speaker, she “Melissa can be very hard-nosed. run the council until term limits force money are funded by private dol- SEIU, further giving the business pledged that the council’s agenda That’s not, in my view, a negative,” her from office in four years,business lars,” said Geoffrey Croft, a gadfly community pause. would be determined by its rank- Mr. Williams said. leaders are trying to build bridges. who runs the group New York City and-file. “This is not about me— Still, she has a reputation for be- Real Estate Board of New York Pres- Park Advocates. “There’s been a Seeking ‘balance’ this is about us,” she said. ing vindictive. Late last year, an ac- ident Steven Spinola sent her con- huge disparity.And she’s been one of “We really hope there will be a Brooklyn Councilman Brad count emerged in The New York gratulatory texts, and Ms. Ploeger the few people who’s looked into it.” balance and understanding that Lander, who co-chaired the coun- Times of Ms. Mark-Viverito’s 2011 sent a letter of congratulation. Some allies said the negative both sides will have a hand in craft- cil’s Progressive Caucus with Ms. meeting with an East Harlem hous- Mr. Spinola said he was encour- publicity Ms. Mark-Viverito en- ing legislation on regulatory issues,” Mark-Viverito, insisted that busi- ing organization that wished to run aged by his early interactions with dured during the speaker race— said Manhattan Chamber of Com- ness owners would have a seat at the a neighborhood arts center. At the the speaker. “We have every reason from her failure to report rental in- merce President Nancy Ploeger. table. “She’s a deliberative and in- meeting, Ms. Mark-Viverito al- to believe that Speaker Melissa come on financial-disclosure forms, “The concern is whether there will clusive person who looks at all sides legedly refused to discuss the pro- Mark-Viverito will listen,” he said to editorials criticizing her closeness be that balance.” of an issue,” said Mr. Lander. posed bid and instead berated an in a statement. “She has indicated to Mr.de Blasio—represented an es- Another business leader,who re- Lloyd Williams, president of the elderly woman on the board of di- she wants to work with us to find tablishment backlash to a progres- quested anonymity for fear of retri- Greater Harlem Chamber of Com- rectors for not actively supporting solutions to the problems facing sive new era in New York politics. bution, was more blunt, saying, merce, echoed that assessment. her first run for office. New Yorkers, and we look forward “I think the establishment “Everyone I talk to is really scared.” “She has strong beliefs,but I have to that opportunity.” should just calm down a bit,” said The speaker’s lefty credentials never known her not to listen to Sick pay, wage bills eyed Mr.Lander described his caucus’ Michael McKee of pro-tenant are plain enough. Ms. Mark-Viver- both sides of the story,” said Mr. Her early agenda items are likely philosophy as “pro-growth progres- group Tenants PAC. “There’s no ito was arrested for sitting at the en- Williams, who has worked fre- to include the expansion of manda- sive”and dismissed media narratives one in this city who doesn’t want to trance of the Brooklyn Bridge dur- quently with the city’s first Latina tory paid sick leave to cover all busi- casting Ms. Mark-Viverito as the grow business.” Ⅲ

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HELLUVA TOWN INSIDE Source Breakfast Broadway Nonprofit exec sees mementos philanthropic resurgence have new stage PAGE 62

Thrice Tony-nominated set Out and About designer Anna Louizos is preparing for a different kind of Broadway Let’s go Met PAGE 63 opening. On March 3, theater lovers can start purchasing mementos such as stage models and sketches from a variety of Broadway shows, operas and other productions through Ms. Louizos’ new website, www.broadwaydesignexchange .com. Ms. Louizos, who has designed sets for Rodgers + Hammerstein’s Cinderella, Avenue Q and In the Heights, said she’d been kicking around the idea of starting a thrift shop to sell off items like costumes, props, sketches and renderings for years after watching them go into the garbage or storage units. Sites like etsy.com and eBay.com showed her she could sell items without a warehouse or a store. Their success persuaded her to take the plunge. “We create really beautiful pieces of work for the theater,” said Ms. Louizos. “I know the fans would really like to have a piece of some shows.” Ms. Louizos added that most people involved in the theater, such as costume and set designers, are freelancers who don’t get paid if they aren’t working. Selling off props, models and sketches is a way to earn extra money between shows. Producers could also market props and sets from their old shows. So far, Ms. Louizos has spent between $5,000 and $10,000 to set up the website, which provides UN-COMMON the platform for people to sell MARKETING: Ex-Wall their wares. In exchange, Ms. Streeter Paul Louizos gets 10% of the Common opened his transactions. store in 2012, luring Currently up for sale are works customers with free by Ms. Louizos as well as famed tastings all day. Tony Award-winning costume designer Ann Hould-Ward. Prices range from $12 for sheet music to $3,000 for an original costume sketch. But this is a limited-run production. Fans can already browse the site, which continues to add items, but the first sale runs Grape expectations for two weeks and is slated to end on March 17. Ms. Louizos said she wanted to More and more small, upscale wine shops are opening in the test the idea before creating a continual marketplace. She hopes city. But will increased competition bottle up profits? to expand the types of items that will be sold on the site to include

things like costumes and buck ennis furniture, and to eventually host auctions. BY LISA FICKENSCHER —theresa agovino DRINK UP fter paul common lost his job as an equity analyst for Merrill Lynch, he tried for two years to find work on Wall Street. With his options exhausted, he decided to pursue an entirely different career, in a field that had become a passion. He drained his savings account, and in 2012 1,368 NUMBER of wine and liquor opened a tiny wine store in the West Village, naming it Uncorked. ¶ stores in NYC, up 14% from Knowing little about the retail wine business, but with a deep knowledge 2010 of the product as an amateur collector, Mr. Common was determined to make his shop stand out among the half-dozen or so other wine stores nearby. Each one is more attractive than the other, specializing in a specific winemaking region or selling hard-to-find bottles. ¶ The newcomer’s gimmick? He offers free tastings all day, every day, usingA technology that allows him to maintain 40 open bottles of wine that keep for up to two 856M months, serving customers sips from Riedel crystal glasses. It is the only “try before you buy” store GALLONS OF WINE consumed by Americans in SHOPPERS, BEWARE: A set model by in the city, according to Mr. Common. ¶ Uncorked is making its mark in the Big Apple, along 2012, up 15% from 2007 Beowulf Boritt from Little Shop of Horrors. with scores of other new wine stores that have sprouted over the past See VINTAGE on Page 62 Sources: State Liquor Authority, Wine Institute

January 13, 2014 | Crain’s New York Business | 61 20140113-NEWS--0062-NAT-CCI-CN_-- 1/10/2014 2:33 PM Page 1

SOURCE BREAKFAST: Vintage days for wine shops ROBERT KISSANE by Theresa Agovino Continued from Page 61 The upscale shops opening now growth goals have been far sur- several years,by offering something are mostly focused on customers in passed,” said Mr. Rapier, who esti- unique—partly out of necessity. their neighborhoods—unlike des- mated that revenue in 2013 would In order to get a license from the tination stores such as Morrell, be as much as $5 million. State Liquor Authority, Mr. Com- Sherry-Lehmann and Acker Mer- Aside from carrying an invento- Nonprofit guru sees mon said, “you need to impress the rall & Condit that serve collectors, ry of about 2,500 wines and spirits, [agency] that your store is different locals and tourists alike. Flatiron,to set itself apart,produces and needed.” The newcomers are also run by a newsletter and an extensive blog a rebound in giving knowledgeable staff—in contrast to keep in touch with its customers. ‘Golden age’ with traditional mom-and-pop “It takes a lot of time and effort, Uncorked is one of 1,368 wine stores of decades past—who hail and there are only a few wine shops and liquor stores doing business in from the restaurant business or are doing that,” said Mr. Rapier. obert Kissane is en- Why me? Why now? How much do the city these days, which is 14% self-taught oenophiles like Beau New stores like Flatiron, how- meshed in the nonprof- you want me to give? Who else is giv- more than there were in 2010, ac- Rapier, a former English teacher. ever, are taking market share away it world both personally ing? What assurances are there that cording to the SLA.The number of He is now the general manager of from others. Bottlerocket Wine & and professionally. He this will happen? You want to be able wine stores has grown so much that 18-month-old Flatiron Wines & Spirit, also in the Flatiron district, has worked at CCS—a to answer those questions well. some predict there will be a shake- opened in 2006. Owner Tom Rconsulting and fundraising firm for out.But wine consumption contin- Geniesse says that during the past nonprofits that has revenue of more What’s the biggest mistake people make? ues to grow as well; it has increased ‘All arrows point three years, 24 new liquor licenses than $50 million—for 35 years, the Setting an unachievable goal. The every year nationwide during the have been issued in the area. past 15 as president.The firm’s clients most common mistake is that the past 20 years. In 2012, Americans to New York City “I don’t think the demographics have included Weill Cornell Medical leadership doesn’t put the time in consumed 856 million gallons of of the city have grown anywhere Center, NYU Langone Medical and make [the goal] an institutional wine, or 15% more than five years when it comes near the number of new stores,”said Center,the New-York Historical So- priority. earlier, according to the Wine In- Mr. Geniesse. “We have managed ciety and the National Audubon So- stitute. to selling wine’ to grow every year,but I do feel [the ciety.The 57-year-old also serves on How has social media affected “All arrows point to the U.S.and competition] is having an effect.” the boards of Human Rights Watch, fundraising? primarily to New York City when it Bottlerocket presents its prod- the Alvin Ailey American Dance Social media is not a big part of the comes to selling wine,” said Kevin uct according to what customers Theater, Poets House and the actual fundraising itself. It is still not Zraly, author of Windows on the want to do with the wine— CUNY School of Professional Stud- a place where a lot of money is trans- World Complete Wine Course. “This whether it’s being purchased as a ies Foundation. acted. If you are doing a run for the is the golden age for wine.” Spirits on Broadway between East gift or to drink with Chinese take- Cancer Society, it is great. But when Indeed, experts say, there are 21st and East 22nd streets. The out. Menus are on display at the How was the fundraising climate you talk about the big dollars,it is not many more winemaking regions in shop made a splash when it opened store as a guide on how to shop,and in 2013? there.The average age of a $1 million the world today producing higher- in 2012, receiving accolades from a toy area for young children lets Better. We are seeing a lot donor in the U.S. is about quality wines, giving new stores a the New York Times’ wine critic, parents browse in peace. more very, very large WHERE 70 years old. way to differentiate themselves. Eric Asimov. But in order to grow the busi- gifts—$1 million, $5 mil- “I hardly recognize anything on In 2012, Mr. Rapier took a trip ness, Mr. Geniesse said he looked lion, $100 million. David THEY So has the process of getting the shelves of these smaller stores,” to the Loire Valley as part of his outside the city—in part because of Koch gave $100 million to DINED big donations changed much? said Roberta Morrell, chief execu- wine education, and the store— regulatory restrictions on licenses New York-Presbyterian. BROOKLYN No. You are having a pri- tive of Morrell & Co., a 66-year- owned by Natasha Amott, whose that prohibit a merchant from own- [Blackstone Group DINER vate conversation, making old retail wine business in Rocke- husband owns Uva Wines in ing more than one liquor store in founder] Steve Schwarz- 212 W. 57th St. a case and inviting some- (212) 977-2280 feller Center,adding,“That doesn’t Williamsburg, Brooklyn—paid for the state. In June 2012, Mr. man’s gift to his scholar- www.brooklyn one to make an investment mean they aren’t good.” some of his expenses. “Our initial Geniesse opened a Bottlerocket in ship program was $100 diner.com in your organization. It is Westport, Conn. million. Ron Perelman AMBIENCE: even more important to be gave $100 million to Co- Bright and airy, in-person because of the RETAIL’S NEW BREED Personal touch lumbia Business School. but the only thing clutter. There are more Other established businesses Giving is now back up to Brooklyn is the nonprofits. There is more THE PAST DECADE has ushered in a new era for wine retail in the city, which mural of Ebbets are adjusting to the new competi- historic levels. Field dominating competition. Everyone has seen several waves of growth. Here are some of the shops that have tion by focusing on their Web sales the dining room. knows who the major opened in recent years: or beefing up customer service. Why? WHAT THEY ATE: donors are, and they are Bottlerocket Wine & Spirit Frankly Wines Burgundy Wine Co. in Chelsea, Philanthropy tracks with Oatmeal with asked for money every day. which opened in 1988,has concen- the stock market. Large fruit So the personal relation- 5 W. 19th St. 66 West Broadway trated on competing online, said gifts are given out of Spinach and ship is even more impor- 1790 Post Road E., Westport, CT www.franklywines.com investor Bob Berenson. assets, not out of income. cheese omelet tant. www.bottlerocket.com “Anyone who is going to pay a When assets are up, Three coffees Moore Brothers lot for wine is researching prices on people are more philan- Large orange Social-service agencies feel Crush Wine & Spirits Wine Co. the Internet,” he said. Burgundy thropic. Three percent of juice they have a harder time 153 E. 57th St. 33 E. 20th St. emails its regulars about tastings, Americans give 60% of PRICE: $54.73, raising money because www.crushwineco.com www.moorebrothers.com new arrivals and special events. Its philanthropy in the U.S. including tip poverty isn’t sexy. What can website,which two years ago began they do to raise money? Flatiron Wines & Spirits Uncorked Wine Co. allowing customers to make pur- What are the keys to running a If there is a way where they can col- 929 Broadway 98 Christopher St. chases online, lists products by successful fundraising campaign? lectively bring attention to the work www.flatiron-wines.com www.uncorkedwineco.com price, region, year and varietals, You need strong leadership. The they do and prevail upon the media among others. board and the CEO have to make it and public officials to make the case, In the past,hosting a tasting was an institutional priority. Then you that is really important. Collective a sure way to increase sales.But now need a fundraising plan. amplification of the issue helps a lot. because people price-shop, Mr. Berenson said,“you don’t always get What makes a good strategy? What makes a good fundraising benefit? an instant sale.” You have to think about sequencing. The closer it is tied to the mission, Other shops are too small to Who is asked for what and when? the better. Do events that involve compete on the Internet,so they fo- Think about matching gifts and people who benefit from your organ- cus on taking better care of their ex- strategic gifts. Which gifts will in- ization and expose donors to their isting customers. Sea Grape Wine fluence others? Do you go to foun- work. I’m on the board of Human Shop on Hudson Street in the West dations first or do you go after you Rights Watch, and we don’t honor a Village is one of them. have a few gifts? It all has to be benefactor; we honor an activist. We “I feel we are better face-to- orchestrated. use it as a platform to make their face,” said manager Cristiano The donor will want to know: existence known to the world. Andrade of the 24-year-old store, which started a loyalty program two years ago.“Customer service is WHO KNEW? Mr. Kissane’s work takes him the key for us.” across the globe. Next stop: Myanmar, with LISTEN to a discussion at CrainsNewYork.com/podcasts executives from Human Rights Watch. buck ennis

62 | Crain’s New York Business | January 13, 2014 20140113-NEWS--0063-NAT-CCI-CN_-- 1/10/2014 2:35 PM Page 1

OUT AND SNAPS Benefits raise money for kids’ programs ABOUT by Ali Elkin and Theresa Agovino

CULTURE FIX CAREER BUILDER WEDNESDAY, JANUARY 15 TUESDAY, JANUARY 14 The Museum of Tolerance is screening a new The Wall Street Technology documentary called WAGNER’S JEWS.The Association will host THE COST OF film tells the story of composer Richard COMPLIANCE AND IT RISK, a panel Wagner’s young associates, many of whom discussion at the Yale Club, 50 were Jewish, and who worked with him Vanderbilt Ave. The event is despite Wagner’s anti-Semitism. The scheduled for 8 a.m. until 11 a.m. screening is at 7 p.m. at the museum, which and will feature a panel discussion is at 226 E. 42nd St. Tickets cost $15 and are with security experts at several available online at financial institutions. The event is www.museumoftolerancenewyork.com. open only to members of the WSTA. Dues are $450 a year, and FRIDAY, JANUARY 17

membership applications are aftau courtesy of howard wechsler howard Previews start this week for the new available at www.wsta.org. JOSEPH KLAFTER and Dr. RUTH WESTHEIMER at ERICA JONG, MARGO CATSIMATIDIS, WENDY WILLIAMS, BARBARA TOBER and Broadway musical a benefit for the American Friends of Tel Aviv University. JEANINE PIRRO at the Police Athletic League’s 25th annual Women of the Year version of THE WEDNESDAY, JANUARY 15 The December event raised $600,000. Luncheon last month. The gala raised $350,000. BRIDGES OF MADISON The New York City Bar COUNTY. Based on the Association will hold its FOURTH novel by Robert James ANNUAL TOWN HALL MEETING, Waller, the show stars which will address the tax Kelli O’Hara and considerations of same-sex spouses Steven Pasquale. The now that the marriages are legal in music was written by the state. Speakers will include Jason Robert Brown lawyers and financial planners. (of Assassins and The The New York City Bar Last Five Years). The Association is at 22 W. 44th St., production is at the Gerald Schoenfeld and the meeting will run from 6 Theatre at 236 W. 45th St. Tickets range p.m. until 7:30 p.m. The event is from $67 to $139 and are available online at free for members. For more www.bridgesofmadisoncountymusical information, visit .com/tickets. www.nycbar.org.

DON’T MISS PUCCINI AT THE MET charity water

TUESDAY, JANUARY 14, MICHAEL and XOCHI BIRCH and SCOTT HARRISON at a hechler photographers ROB BROWN MEMBERS OF THE MADISON SQUARE BOYS & GIRLS CLUB THROUGH FRIDAY, MAY 9 benefit for charity: water. The December event raised $4 , and million. DEIDRE BROWN. A fundraiser last month took in more than $1 million for the club. The METROPOLITAN OPERA’s two presentations of popular Puccini classics begin this week. First up is La Bohème, which begins on Tuesday, while See more of this week’s Snaps online at CrainsNewYork.com/galleries. Madama Butterfly, produced by Anthony Minghella, begins on Thursday, Jan. 16. (La Bohème’s final performance is Friday, April 18.) Tickets range from $27 to $310 and are Photo Credit: Buck Ennis available online at www.metoperafamily.org. The Metropolitan Opera is at 10 Lincoln Center Plaza.

OPENING FUNDRAISERS FRIDAY, JANUARY 17, MONDAY, JANUARY 13 THROUGH SUNDAY, MAY 11 DRESS FOR SUCCESS WORLDWIDE, in The Morgan Library and Museum is conjunction with Vintage Vanguard, hosting VISIONS AND NIGHTMARES: FOUR will hold a cocktail hour and silent CENTURIES OF SPANISH DRAWINGS,an auction at the Jane Ballroom, 113 Jane THE BUSINESS OF RESTAURANTS: exhibit St. The organization supplies featuring disadvantaged women with several artists, professional clothes for job interviews. How the Eatery Industry Serves New York including An online auction will lead up to the Francisco event, which is scheduled for 7 p.m. Goya. It until 10 p.m. Tickets cost $140 marks the first and are available online through Thursday, January 23, 2014 presentation www.eventbrite.com. Join Crain's along with industry of Spanish John Jay College of drawings at WEDNESDAY, JANUARY 15 leaders to discuss the hot topics. Criminal Justice the museum. The YOUNG PROFESSIONALS COUNCIL 524 West 59th Street The library is of the Colon Cancer Challenge located at 225 Foundation will celebrate its official Panelists: 8:30 a.m. - 9:00 a.m.: > Madison Ave. launch with a happy hour from 5:30 Mathew Glazier, President, The Glazier Group Networking Breakfast p.m. until 8:30 p.m. The event costs > and is open from Tuesday through Carolyn D. Richmond, Co-Chair, Hospitality Practice Group, 9:00 a.m. - 10:00 a.m.: Sunday. Admission costs $18 for adults. $20 to attend, and registration is Fox Rothschild LLP Program For information, visit available through www.eventbrite.com. > Andrew Rigie, Executive Director, New York City Hospitality www.themorgan.org/exhibitions/ The event will be at Sidebar, 118 E. Alliance $80 for individual ticket(s). upcoming.asp. 15th St. > Andrew Schnipper, CEO, Schnipper Restaurants $800 for priority reserved seats of ten (10). MARK YOUR CALENDAR… Register Today » crainsnewyork.com/events-bizofrestaurants You must be pre-registered to attend MONDAY, FEBRUARY 10, AND TUESDAY, FEBRUARY 11 this event. No refunds permitted. The WESTMINSTER KENNEL CLUB DOG SHOW will be at For more information, contact Adrienne Yee at (212) 210-0739 or Madison Square Garden next month, bringing [email protected] hundreds of hopeful owners and their pooches. The event is at 8 p.m. on the first night and 7:30 p.m. on For sponsorship information, contact Sponsored by: Lauren Black at (212) 210-0278 or the second. Tickets start at $40 and go up to $160 [email protected] and are available online through Ticketmaster. For more information, visit www.thegarden.com.

January 13, 2014 | Crain’s New York Business | 63 Today’s the day Running your small business just got a little easier.

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