REPORT REAL ESTATE Knight Capital Offshore Investors Thrives on Chaos on NYC Buying Binge; on Wall Street Top Leases, Sales PAGE 2 ® PAGE 19 St

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TOP STORIES REPORT REAL ESTATE Knight Capital Offshore investors thrives on chaos on NYC buying binge; on Wall Street top leases, sales PAGE 2 ® PAGE 19 St. John’s reports big jump in fall applications; other VOL. XXIV, NO. 7 WWW.CRAINSNEWYORK.COM FEBRUARY 18-24, 2008 PRICE: $3.00 colleges also gain PAGE 3 Tax-exempt How boos for Isiah could derail the big housing Penn Station plan GREG DAVID, PAGE 13 funds are Malpractice panel drying up eyes no-fault birth-injury plan Only 2 or 3 projects THE INSIDER, PAGE 14 with affordable units may get financing BUSINESS LIVES OFFICE ECO-NAGS BY THERESA AGOVINO Getting colleagues to MEETING DEMAND: To go green requires accommodate a wealthy foreign a state housing finance program plenty of patience and guest, Daniel Flannery of is being cut back, which could persuasion PAGE 39 The Ritz-Carlton at Central Park jeopardize a number of affordable built a $1 million suite. housing developments in New York City. david neff david This year, only two or three of $30,000 A NIGHT the approximately 30 projects seeking state tax-exempt financing under the 80/20 Program—buildings in which 80% of the apartments are rented at the market rate Hitting the suite spot and 20% are leased to low-income households—are likely to receive from overseas within 10 days and week stay? More than $200,000. it. Potentially worse is that no oth- What recession? wanted to stay in a large suite on a While most of the city is brac- er projects may get funded in 2009 Hotels cash in on low-level floor. ing for a recession, the priciest and 2010. The problem: No such room Manhattan hotels are thriving, The New York State Housing foreign demand existed. flush with cash from wealthy for- Finance Agency,which issues bonds for luxury rooms Workers were immediately dis- eign visitors who are coming here for the 80/20 Program, says there AT DEADLINE patched to knock down walls in in droves and spending thousands will be only $689 million available four guest rooms on the third floor of dollars a night for premium ac- over the next three years for new YANKEES CAPTAIN DEREK BY LISA FICKENSCHER to create a 1,900-square-foot suite, commodations. Demand is so projects.All of that money will be al- JETER IS OPENING UP THREE featuring two living rooms and a strong that hotels are considering located for this year’s projects. Last Manhattan health clubs in a last september, The Ritz-Carl- dining room with park views. adding more luxury rooms. year,the HFA issued $722.1 million joint venture with 24 Hour ton New York, Central Park hotel The cost of the 10-day renova- “The high end of our business worth of bonds for 80/20 projects. Fitness in the chain’s first foray got a call on behalf of a royal fam- tion? $1 million. is growing by double digits,” says The 80/20 Program is an im- into New York. Mr. Jeter is an ily that was arriving in New York The bill for the family’s two- See HOTELS on Page 8 See HOUSING on Page 9 equity investor in the clubs, called “24 Hour Fitness-Derek Jeter,” though terms of were not disclosed. “You don’t have to play baseball or even be a baseball fan to go work out Media advertising on a downswing there,” he says. Last year, 24 Hour Fitness also signed a 10- year, $10 million deal with the Newspapers most vulnerable; radio, local Yankees that gives it the right MEDIA CULPA to open three Yankees-themed TValso hit hard; Internet prospects bright health clubs in Manhattan. They are separate from the The paper isn’t the only suffer- Jeter clubs. BY MATTHEW FLAMM ing media business. Radio ad revenue for the New York market- THE NAMESAKE OF THE on the heels of a 13% plunge in place took a slide in January, and GENERAL MOTORS BUILDING December’s advertising revenue, television insiders predict a low- Time Ladies’ Home has found a new home. GM’s The New York Times said last week single-digit ad revenue drop in the magazine SmartMoney Journal See AT DEADLINE on Page 2 that it would cut 100 newsroom first quarter for the local market- jobs over the course of this year. place. Add magazines to the mix: -39% -22% -15% Some are seeing the bottom fall out AD PAGES AD PAGES AD PAGES (through Feb. 11)2 (through March)2 (through March)2 of their ad page counts. The New York Times 07 Media Group

5 The first quarter of 2008 is al- New York radio marketplace ready looking dismal, following a tough fourth quarter. As talk of a -13%AD REVENUE looming recession grows, media (December 2007; includes -7.5%AD REVENUE companies that depend on adver- International Herald Tribune)1 January 20083 tising are looking with trepidation NEWSPAPER Sources: 1-Company report. 2-Mediaweek. 3- Miller Kaplan Arase & Co. report. See MEDIA on Page 8 71486 01068 0 CNYB 02-18-08 A 2,3 2/15/2008 8:37 PM Page 1

AT DEADLINE

Continued from Page 1 avoiding standing in long lines treasury operations and asset by the harbor. Expecting further management group, which are gains in the spring and summer, now housed in the tower on the San Francisco-based Fifth Avenue, will move to the company is bringing another Citigroup Center next summer. vessel to New York from San The company signed a 10-year Diego and is purchasing a lease for 135,000 square feet at second boat, bringing the size of 153 E. 53rd St., according to its fleet to seven. Peter Riguardi, president of the New York operations of Jones GOLDMAN SACHS, WHICH SO Lang LaSalle, who with FAR HAS AVOIDED THE WORST colleague Lloyd Desatnick of the credit crisis, may be in for represented GM. Asking rent at some pain. Analysts at Fox-Pitt the building was $115 a square Kelton Cochran Caronia Waller foot. Frank Doyle and Dave said Friday they expect the firm Kleiner, brokers at JLL, to take $1.7 billion of write- represented the landlord, downs this quarter associated Boston Properties Inc. with loans made to finance leveraged buyouts. In addition, THE METROPOLITAN TRANSIT they expect the firm will suffer AUTHORITY EXTENDED THE $1.4 billion in losses on deadline for bids on the Hudson principal investments. Rail Yards by a week, until Feb. 26, because it was late in giving CONTOUR VENTURE PARTNERS the development teams some EXPECTS TO ANNOUNCE THIS construction information. It still week that it has raised $24 KNIGHT’S ERRANT: plans to select a developer by the million for its first venture CEO Thomas Joyce saved end of March.The five capital fund.The Manhattan- the firm by cutting staff, development teams are The based firm will use the fund to expanding activities and Related Companies, Extell invest in about 10 startups that making acquisitions. Development Co., Brookfield focus on financial services, new

Properties, a joint venture media and business services levinekarjean between The Durst technology in the Northeast. Organization and Vornado Realty Trust, and a joint venture PARSONS THE NEW SCHOOL between Tishman Speyer and FOR DESIGN IS OPENING Morgan Stanley. a 32,000-square-foot center this week that will be an exhibition Cashing in on chaos THE NEW OPERATOR OF THE and meeting space for students FERRY ROUTE TO THE STATUE OF and the public.The $13 million Liberty and Ellis Island says facility combines the ground Climate is just right for trading firm Knight Capital traffic has increased sharply floors of four buildings to create since it took over the concession an “urban quad,” with galleries on Jan. 1. Hornblower Yachts and an auditorium. It will be BY AARON ELSTEIN Chief Executive Terry MacRae named the Sheila C. Johnson says passenger volume has Design Center after the co- from his third-floor office in jersey city,Thomas Joyce can clearly see Wall Street. He increased 9% year-to-date as a founder of Black Entertainment can also happily say that he doesn’t feel its pain. result of warmer weather, as well Television, who donated $7 Instead, his company actually stands as a beneficiary of the carnage on the east side of the as tourists’ ability to purchase million toward building their tickets on the Internet, thus renovations. Hudson. As many financial institutions posted their worst results ever last year, Knight Capital Group Inc. was in celebration mode.Transaction volume at the firm, which trades stocks on behalf of institutional investors, soared 60%, to $3.2 trillion.The surge sent trading revenues up THIS WEEK IN CRAIN’S by 12%, to nearly $750 million. Betting that the good times will keep rolling for Knight, investors have driven its share price up 28% in the past three months.

SMALL BUSINESS ------11 “Volume and volatility translate into strong results for us,” says Mr. Joyce, Knight’s chief See KNIGHT on Page 8 GREG DAVID ------13

THE INSIDER------14 THE WEEKS AHEAD ------15 Two airline mergers would b WEEK IN REVIEW ------16 REPORT: deal. Meanwhile, Continental Air- would mean for New Yorkers is an- Proposed tie-ups lines and United Airlines have let it other matter. 41 REAL ESTATE ------19 would do little to cut be known that they would quickly “Airline mergers are not de- DEALS------30 join forces if the Delta-Northwest signed for or by consumers,” says airport congestion; linkup gets off the ground. To date, Craig Jenks, president of consulting NEIGHBORHOOD JetBlue’s key role none of the airlines has officially firm Airport/Aircraft Projects Inc. JOURNAL------33 confirmed any deals. “They’re designed for and by in- The four carried more than 40% vestors and management to make CLASSIFIEDS ------36 BY HILARY POTKEWITZ of the 109 million passengers who airlines more profitable, which flowed through John F. Kennedy translates to higher ticket prices.” BUSINESS LIVES------39 rumored mergers among four of International, La Guardia, and By gobbling up their competi- CORPORATE LADDER------41 the nations’ largest airlines could Newark Liberty International air- tors, the carriers would gain signifi- well transform the industry but ports last year. By merging, the air- cant pricing power. Industry ana- EXECUTIVE MOVES------43 42 would most likely bring only fare lines hope to achieve economies of lysts predict that the deals would be BOB LAPE ------43 hikes and a continuation of over- scale by eliminating overlaps in good for the carriers’ stocks—large- crowded airports in New York. everything from marketing to ly for that very reason. vol. xxiv, no. 7 february 18, 2008—Crain’s New York Business (issn 8756-789x) is published weekly by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals Speculation about the mergers’ maintenance operations and postage paid at New York, N.Y. and additional mailing offices. Postmaster: Send address impact intensified last week as re- staffing. They also hope to stream- Fare play changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a ports emerged that long-running line schedules by cutting duplicate currently, “fares are too low and copy, $59.79 one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents discussions between Delta Air flights on many routes. do not reflect financial realities,” copyright 2008 by Crain Communications Inc. All rights reserved. Lines and Northwest Airlines have All that would certainly help off- says Calyon Securities analyst Ray moved close to producing an actual set soaring jet fuel prices,but what it Neidl. He and many others on Wall

2 | Crain’s New York Business | February 18, 2008 CNYB 02-18-08 A 2,3 2/15/2008 8:37 PM Page 2 St. John’s blessed Blues forts to attract students in faraway at the Queens university’s states like California, Texas, Flori- applications jump da and Virginia. “We did a lot of hard work this CHARLIE KLEIN says 27% as recruiting past fall combing new cities and St. John’s campus feel toy fair counties for students,” says Beth attracted him. A effort pays off financial aid package Evans, vice president of enrollment clinched the deal. at St. John’s, where tuition, at Industry reeling BY SAMANTHA MARSHALL $26,200, is a third less than that of most of its Manhattan rivals. from recalls, lower until last year, all that Seattle sales volumes native Charlie Klein knew about St. Doubling up John’s University was that it had a st.john’s sent recruiters to 38% basketball team. But after a relent- more out-of-state high schools, BY ELISABETH CORDOVA less e-mail campaign from the pri- with a focus on areas with large vate Catholic college’s recruiters, Catholic populations and high toy industry insiders expect the the high school student began con- graduation rates. The university, annual American International Toy sidering the Queens-based campus which visited individual schools Fair to be a somber affair.The spate an appealing alternative to larger and hosted receptions across the of toy recalls during the busy holiday Manhattan schools like New York country,doubled up on the number season has forced companies to University. of open houses it held on campus.It spend huge sums on product testing, “I waslookingat a bunchofplaces also increased international out- even as sales decline. in New York and Boston, but I liked reach efforts by targeting students More than 1,500 toy developers the campus feel of St. John’s,” says in China, India, and vendors from all over the world the 18-year-old journalism major. Korea and Japan, will convene at the Jacob K. Javits Last week,New York City’s uni- as well as in Eu- GROWING Convention Center this week to versities reported record-breaking rope and Central place their summer and holiday or- increases in the pool of freshman and South Ameri- DEMAND ders. The cost of the recent recalls applications. The final tallies aren’t ca.The result was a Freshman applications for fall will start to become clear as buyers in yet, but New York University 53% rise in the 2008. stroll through booths stacked with said it saw an 8.5% jump in fresh- number of interna- 35,317 +27% dolls, bicycles and remote-control man applications to more than tional freshman St. John’s University cars. 37,000 for the fall, while Fordham applications.

University reported a 7% rise to The way school 37,000+ +8.5% roger hagadone Big money for safety 23,160 and Columbia University officials handled New York University toy retailers and manufacturers, had a 4% gain to 22,248. last year’s security dents with average The university has invested $47 along with the Chinese govern- Regional schools like the City incident, when a 23,160 +7% SAT scores that are million in facilities for science and ment, are pushing for more exten- University of New York, Manhat- student with a gun Fordham University up as much as 10 technology and now has an entirely sive product testing to prevent toxic tanville College and Marymount was caught on its points. wireless campus. A new academic metals from show- Manhattan College also saw gains. gated campus, did 22,248 +4% To lure these building with classrooms and meeting up in little But St. John’s trumped them all, as much to en- Columbia University brighter students, ing halls is expected to be up and 2% Susie’s Barbie doll. reporting an eye-popping 27% in- hance St. John’s it’s playing up its running by the fall of 2009. It has DECLINE Some mer- crease in freshman applications to reputation. Atten- advantages as an also been refurbishing and expand- in toy sales, to chants are now in- 35,317 and counting. dance at last fall’s open house, after urban school.It’s touting access to all ing the number of residence halls for $22.1 billion, sisting on expensive “Five years ago, urban universi- the arrest of the gunman made na- the internship and cultural opportu- out-of-town students. It now has in 2007 batch tests, which ties weren’t as loved as they are tional news, went up 5%. nities of the city as well as the leafy housing for 2,923 students. All of tend to detect prob- now, but there’s been a clear and “Parents saw it as reassurance tranquility of a traditional enclosed these perks will be affordable for lems earlier. Insiders say that Wal- distinct shift in student attitudes,” that their son or daughter would be campus. “There is a way to have the students who file for financial aid, Mart Stores Inc. has formed a com- says Robert Franek, lead author of safe,” says Ms. Evans. best of both worlds, and St. John’s is because they receive an average of mittee to review its vendors’ toy The Princeton Review’s college St. John’s, which bills itself as a middle ground,” says Mr. Franek. $21,974, or 83.9% of tuition. safety processes. Others chains are guide. having a more intimate academic “The financial aid package real- expected to follow suit. St. John’s attributes this year’s setting than most New York col- Academic advances ly clinched it for me,” says Mr. “Business has picked up signifi- huge jump in applications, which leges,only intends to grow its fresh- long overshadowed by the likes Klein. cantly,” says Richard Postman, a compares with an 8.5% increase man class by about 3%, but it’s of NYU and Columbia, St. John’s is senior account executive at interna- this time last year, to aggressive ef- drawing a more diverse base of stu- also gaining in academic reputation. COMMENTS? [email protected] tional product testing firm SGS.His department has been overrun with orders to test toys for toxic heavy metals, including lead. As a result, some industry veterans expect that toy prices will rise boost profits, squeeze passengers dramatically this year. “Retail prices will go up between Though ticket prices are expect- vises those customers to “brace handful of Western and Midwest- 10% and 20%,” says Joseph DiRes- SKY TITANS ed to rise in New York,the presence themselves.” ern cities. ta, a freelance toy broker who con- NY passenger market share. of discount specialist JetBlue would There is little hope that the A Continental-United union sults with developers and manufac- Delta + Northwest: mute the pain. JetBlue is the largest mergers would ease congestion in could actually result in an increase turers. airline at JFK and accounts for 14% New York. The area’s three air- in traffic to the New York area. of total passengers at area airports, ports were responsible for about United would very likely shift its Losing out to iPods but it offers only economy class. 75% of all flight delays nationwide East Coast hub to Newark from that’s bad news for an industry 13% last year, according to the Business Washington Dulles International, that has been losing sales to iPods Battle at low end Travel Coalition. Mergers usually Mr. Jenks says. and video games in recent years. In though the two new megacarri- result in fewer flights, but that Those two airlines do have some 2007, toy sales fell 2%, to $22.1 bil- Continental + United: ers would have to keep fares within wouldn’t be the case in New overlap on transcontinental routes. lion, according to trend tracking reach of JetBlue, they would have a York—at least not with these air- Forrester Research analyst Henry firm NPD Group. freer hand in pricing their offerings lines. Harteveldtthinks that United would The rising prices and safety con- 28% to business travelers. To compen- The problem is that there are drop a few of its 18 weekly nonstops cerns may squelch innovation as re- sate for being hamstrung in coach, surprisingly few overlaps.Delta,for to California but that Continental tailers and manufacturers look for the combined airlines would prob- example, has large operations at would replace them with service to surefire successes, Mr. DiResta says. ably boost fares where they could. both JFK and La Guardia, which other domestic destinations. “Creativity is suffering because

bloomberg news And business fliers could face fuel are focused on national routes feed- At press time, Continental had everyone wants a grand slam,” he surcharges of $50 or $60 a ticket, ing its expanded service to Africa, also reportedly approached Ameri- says. “We’re all vying for that little Street believe it’s about time that compared with $20 to $40 now, ac- India and Europe. Northwest, on can Airlines about a deal. bit of real estate.” airlines consolidated and raised cording to Rick Seaney, chief exec- the other hand, has a small local prices. utive of FareCompare.com. He ad- presence offering daily flights to a COMMENTS? [email protected] COMMENTS? [email protected]

February 18, 2008 | Crain’s New York Business | 3 CNYB 02-18-08 A 4 2/15/2008 8:39 PM Page 1

IN THE MARKETS HIGHLIGHTS REEL Knot’s Valentine stumble -0.1% The Bloomberg/ won’t unravel its future Crain’s New York Index

➡ fell 0.1% to giving The Knot “added scale and a such growth is not factored into the cur- end the Heavy investments stronger base of advertisers,” notes Jeetil rent stock price. The Knot’s shares now week at depress earnings, Patel, a Deutsche Bank analyst, in a re- trade at 30 times earnings,roughly half the 330. The cent report. He rates multiple of a year ago. S&P 500 but payoff will come the stock a “buy.” Better yet, analysts Index rose The Knot reported agree that The Knot 1.4%, 2007 revenue of $98.7 has enormous room closing at BY ELISABETH BUTLER CORDOVA million, up 36% from for growth. Younger 1350. 2006. Revenue from consumers already alentine’s day turned out online advertising in- turn to the Internet for to be a heartbreaker for The creased by 34% as everything from Knot Inc. this year. companies such as recipes and movie The media firm, which Nationwide Mutual rentals to banking and provides online wedding Insurance and Kohl’s shopping. As they RISERS planningV tools and registry services, as snapped up ad space near marriage age, 5-DAY 1-MONTH 3-MONTH CLOSING well as a smattering of print magazines on its sites. Wedding- those consumers will % CHANGE % CHANGE % CHANGE PRICE and books, watched its stock price tum- supply sales also turn to The Knot for Weight Watchers +11.8% +13.6% -3.6% $48.17 ble 17% that day after it projected flat jumped by 29%. help in their prepara- New York Times +11.4% +24.9% -0.9% $18.69 earnings for the rest of the year. Earnings were an- tions, analysts predict. Its stock closed last week down 57% other matter. Even af- “The company’s Cablevision +10.6% +18.0% +7.6% $27.72 from its 52-week high of $26.60 on Feb. ter adjusting for spe- Market cap $367.9 million Web properties are Schering-Plough +10.5% -8.1% -25.5% $21.85 15, 2007. cial items including a only capturing a small Long-term debt $55,200 Sotheby’s +10.3% +5.1% -11.1% $34.04 But investors would do well to court large one-time tax fraction of a $2 billion The Knot. The wedding business is rela- benefit that inflated Active memberships 1.2 million potential [market],” tively recession-proof, and this compa- 2006 results, The on TheKnot.com notes George Askew,a SINKERS ny’s revenues are rising steeply.True,The Knot’s profits still Stifel Nicolaus ana- 5-DAY 1-MONTH 3-MONTH CLOSING Knot’s earnings won’t go anywhere this slipped by nearly 7% lyst, in a recent re- % CHANGE % CHANGE % CHANGE PRICE year. But that’s only because the compa- to $11.9 million, or 36 cents per diluted search report. He rates the stock a “hold.” MBIA -16.2% -23.7% -67.9% $12.24 ny is spending money to beef up its tech- share. The Knot, which launched in 1996 Liz Claiborne -15.1% +7.3% -33.0% $17.60 nology and advertising while nurturing Analysts expect the company to gen- and went public in 1999, also enjoys sup- new niche sites, including TheNest.com JetBlue -9.3% +37.0% -15.5% $6.26 erate revenue of $113.9 million and earn- port from retail giants such as Macy’s and for newlyweds and TheNestBaby.com for ings of 42 cents per share this year and a popular Web sites like iVillage.com and American Int’l Group -9.0% -20.3% -19.0% $46.11 first-time parents. healthy $130.1 million in sales and 58 Weather.com. Lehman Brothers -8.8% -1.7% -13.0% $54.77 Those investments are expected to cents per share in profits for 2009. start paying off by the end of the year, The good news for investors is that COMMENTS? [email protected]

THIS IS OUR MARKET... STOCKS TO WATCH by Erik Ipsen 3 cheers—not Yahoo—for earnings growth at profit-pumping News Corp. IN THE PAST YEAR, nearly everything that could fly in Rupert Murdoch’s global media empire did. News Corp. earnings climbed 10% on strong performances by the Internet unit, which includes MySpace, and by cable TV operations. Even the movie unit beat expectations. With all that going for the company, it’s no wonder that many investors pooh-poohed a rumored tie-up with Yahoo as bringing little to the party. Prudential Financial’s cool is gone. Last year, as most financial stocks melted down, shares of the insurer rose 8%. It’s now a different story, with the Admit One, the trusted source for the acquisition and sale of live event tickets for over 20 years… shares dropping 23% this year. Investors fret that the only thing that On the Buy side and Sell side — we offer our clients true market value, secure transactions separates Newark-based Pru from NY’s troubled AIG is the Hudson; both and dependable service. Let Admit One connect you and your clients to the events insurers hold a lot of real estate assets whose value is skidding. A surprising— that matter. Call today, our market makers are standing ready to at least to analysts—-4% drop in fourth-quarter earnings didn’t help matters. BUY or SELL all NBA and NCAA tickets. People have been digging graves for Barnes & Noble ever since Amazon emerged from the Web jungle over a decade ago. Understandably, its share price has fallen 30% in the past Big East and year. But the bookseller ain’t dead Big East and yet. Its online arm gets 70 million •C•CONCERTSONCERTS visits a year, nearly three dozen new (646) 307-4239 FinalFinal Four Four Tickets Tickets stores will open and same-store sales www.admitone.com • email: [email protected] NowNow Available Available•T•THEATERHEATER are rising at an annual rate of over 1412 Broadway, New York, NY PORTSPORTS 3%. Not bad for a company with a SS P/E of 14, one-fifth that of Amazon. On the Bloomberg Terminal: Type TIXX or email [email protected] charts: lindström bekka

4 | Crain’s New York Business | February 18, 2008 Project1 2/6/08 3:15 PM Page 1

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NEW YORK,NEW YORK edited by Valerie Block

sudden breakup of her marriage Having a ball four years ago for a sum in the at the Edison middle six figures, according to industry sources. the supper club in Times Falling Apart in One Piece will Square was the place to go for combine a personal account with ballroom dancing in the 1990s. advice on how to deal with the Now, a new owner is hoping a $5 trauma of divorce. “It’s a memoir million renovation of the venue with lessons,” says an executive at a that closed last May will bring it house that was bidding on the title. back to its former glory. Editors who saw the proposal Next month, restaurateur and say they were struck with the hotelier Allan Wartski will reopen author’s down-to-earth tone and the Art Deco space in the Hotel her candid description of painful Edison as the Edison Ballroom— events.They also liked the fact the name it had in the 1930s—for that Ms. Morrison, as the top weddings, bar mitzvahs, editor of a major women’s fundraisers and corporate events. magazine, would have a platform “I know the neighborhood, and from which to publicize her book. high-end catering spaces are “She comes from both sides of corbis scarce there,” says Mr. Wartski the desk, so she knows [about who wants to revive ballroom promoting the book],” says the 1 autobiography, dancing in the space as well. executive. Mr. Wartski is no stranger to A Simon & Schuster many lives the restaurant and catering spokeswoman did not comment. businesses. He owns Japanese ormer member of restaurant Hakata Grill around the international left, the corner from the Edison and Schools get FIraq war supporter, co-owns 16 hotel and apartment the news scourge of Henry Kissinger, with viewership for network Mother Teresa and Jerry news continuing to gray, NBC has Falwell,No.1 best-selling found a new way to attract youth. It is pushing a subscription service author and Vanity Fair to public schools nationwide that columnist on everything would allow them access to its vast from why women aren’t archives of historical news footage. funny to getting a body wax, The network has invested $15 Christopher Hitchens million in the project and expects Weiser LLP is pleased to announce that to start charging fees next year. (above) has led many “This is a chance for students intellectual lives. Now he’s to see the first draft of history,” Brian Williams John Barone going to write about them. Nightly News anchor THE EDISON BALLROOM will open. said at a luncheon announcing the Hachette Book Group Web-based program. & Howard Cohen USA imprint Twelve has The network expects to charge acquired Mr. Hitchens’ properties in the metropolitan area. about $3 a year per student for the have been admitted into its partnership. Executive chef Mina Newman, service, which is currently free.To autobiography for from Mr. Wartski’s two-year-old make sure poor school districts $500,000, according to an Christo’s Steak House in Astoria, have access, it plans to partner with New York City John Barone, CPA industry source. Queens, will move to the Edison corporate sponsors. So far, about 135 West 50th Street Ballroom to run the kitchen. 8,000 classrooms have used the New York, NY 10020 provides personalized accounting A rich deal for a literary Tel 212.812.7000 and auditing services to clients in a system, which can be customized Fax 212.375.6888 variety of industries. He specializes journalist, it’s a sign of how according to curriculums. in consolidated entities and internal Mr. Hitchens has moved Another memoir In January, NBC launched a Long Island control analysis. Mr. Barone Spanish-language version of the 3000 Marcus Avenue currently serves as President of the into a different league since to hit the shelves Lake Success, NY 11042 program with its sister network Nassau Chapter of the New York his last book, God Is Not Tel 516.488.1200 readers of Redbook who are also Telemundo. NBC is also working State Society of Certified Public Accountants. Fax 516.488.1238 Great: How Religion Poisons fans of Editor-in-Chief Stacy with the New York Film Academy Mr. Barone can be reached at 516.620.8508. Morrison Westchester Everything. and her “Something to create a journalism program to 660 White Plains Road Published last spring, also About Stacy” blog are soon to get debut in September that will use Tarrytown, NY 10591 an extra dose of the single mom’s the footage. Tel 914.333.0555 by Twelve, the title jumped writings. Fax 914.333.0556 Howard Cohen, CPA provides accounting and audit to the top of The New York Simon & Schuster just bought Contributors: Lisa Fickenscher, New Jersey services, as well as tax services, Times’ best-seller list. It has Ms. Morrison’s memoir of the Matthew Flamm, Samantha Marshall 399 Thornall Street to private and public companies. Edison, NJ 08837 He advises clients on financial sold 295,000 hardcover Tel 732.549.2800 management issues such as financing, copies, according to Nielsen Fax 732.549.2898 MEGA-TASTING completing acquisitions, and raising BookScan, which tracks www.weiserLLP.com capital through public offerings and THE FIRST NEW YORK WINE EXPO comes to the Jacob K. Javits Conven- private placements. In addition, he has extensive about 70% of the market. tion Center on March 7 and 8. Attendees will be able to sample more experience in auditing not-for-profit entities, as well as And it gave the year-old than 600 wines from more than 170 winemakers from around the globe advising and consulting with not-for-profit executives. imprint its first major best- while they nibble hors d’oeuvres. Speakers will include Glo- Mr. Cohen can be reached at 212.375.6587. seller. ria Maroti Frazee, director of education at Wine Jonathan Karp, founder Spectator, and Mark Oldman, author of the best-sell- Weiser LLP ing Oldman’s Guide to Outsmarting Wine. Tickets Certified Public Accountants and publisher of Twelve, cost $75 or $85.

declined to comment. istockphotos

6 | Crain’s New York Business | February 18, 2008 Project2 2/13/08 3:35 PM Page 1

SMALL BUSINESS BANKING CNYB 02-18-08 A 8 2/15/2008 8:40 PM Page 1

the Internet. TNS Media Intelli- “Everyone is scratching their heads gence has forecast 5% revenue over what the second quarter holds.” Media advertising on downswing growth this year for cable, 3% for Despite the continued strength network TV and 14% for the Inter- of American Idol and the expected Continued from Page 1 because they didn’t want their spots [rates] are not coming up.” net. return of scripted programming at what the rest of 2008 might hold. to appear during the repeats or real- Some magazines have also been Some portions of the magazine now that the strike is settled, net- “The big problem is this massive ity shows that have been substitut- battered by the falloff in automotive industry also look insulated. work television has its worries, too. tsunami of bad news tied to the sub- ing for scripted programming. And and financial services advertising. Through March, ad pages were “The near term has been prime mortgage collapse,” says Ed- with no new high-profile shows to Ad pages for the newsweekly cate- up at monthlies Vogue, Harper’s healthy,” says Aaron Cohen, chief ward Atorino,a media analyst at the promote,TV has been spending less Bazaar, Elle and Allure—all titles negotiation officer for Horizon Me- Benchmark Co. “It’s much worse on radio ads. that appeal to an affluent readership. dia, a media buying agency. “But in than anybody thought, and it’s last- Ad revenue for the New York ra- ‘Everyone is “The luxury market is strong and the long term, there are possible ing much longer.” dio marketplace fell 7.5% in January robust,” says Richard Beckman, negative effects from lack of con- Newspapers have been the most to $43.3 million, according to a re- scratching their president of the Condé Nast Media sumer confidence, which may even- vulnerable to the ripple effect of the port from accounting firm Miller Group, which brings in ads that can tually impact marketing and adver- credit crunch and the long-running Kaplan Arase & Co. heads over the be spread across the company’s tising budgets.” problems for U.S. automakers. Media buyers say that rates for many high-end titles. Some media executives say that Ad revenue is down at the Daily radio airtime have become very second quarter’ But even at Condé Nast, some there’s a silver lining to any difficult News and Newsday, in addition to competitive—a sure sign of a lack of magazines are struggling. Ad pages environment. Troubled businesses the Times, according to insiders, business. are down 9% at Vanity Fair and 19% need to advertise,and a downturn in driven by declines in automotive, fi- at Gourmet through March, while one industry, such as housing, could nancial services and real estate ad- Rates not going up Bon Appétit is down 6% for the same mean an upturn in another. vertising. “there’s been nothing much go- gory have dropped 25% from the be- period. “We can have foreclosure attor- Radio and local television have ing on—no political spending, ginning of the year through Feb. 11, neys [advertise],” says Michael been caught in the same downturn, no Olympics,” observes Meredith according to Mediaweek. Second-quarter concerns Weiss,president of sales at CBS Ra- with the writers’strike providing ad- Smulian, senior vice president of The only areas where worries there is plenty of apprehension dio. “Wherever there’s an obstacle, ditional pain for both industries. R.J. Palmer Inc., a media buying about the economy have yet to take about the future, too. “Many maga- there’s an opportunity.” Some big local advertisers have agency. “In the second quarter, you a significant toll appear to be cable zines had very soft April issues,”says stayed out of television this quarter expect to have to pay more, but television, network television and an executive at the company. COMMENTS? [email protected]

last month for EdgeTrade, a Man- however. Poor performance in hattan firm whose software helps Knight’s money management arm, Knight cashes in on chaos investors trade stocks without tip- which contributes 13% of revenue, ping their hand. caused 2007 net income to slip to Continued from Page 2 rill Lynch. landed there in 2002. Customers $122 million on revenues of $905 executive.“We’re in a good environ- “Tom stood out because he was were fleeing, and trading on the Installing a better system million.That compares with net in- ment.” honest in a business where a lot of Nasdaq—a business that Knight one of mr. joyce’s most successful come of $158 million and revenues Many analysts attribute the people will take advantage of you,” had once dominated—was implod- moves came after the firm had a of $956 million in 2006. Last company success to another factor: says Mr. Cramer, who was also a ing along with the tech bubble.Rev- small loss in 2004,when others were month,Knight shut one of the unit’s Mr. Joyce, who has thoroughly re- classmate of Mr. Joyce at Harvard. enues fell by 68% between 2000 and minting money. He installed a bet- lagging hedge funds. A feared pull- engineered Knight since parachut- “He was the best trader I knew.” 2002, and Knight swung to a $43 ter system to track and coordinate back by shell-shocked retail in- ing in six years to rescue it after a In many ways, Mr. Joyce, captain million loss from a $260 million trades; that tweak, along with the vestors could hurt the firm’s volume. devastating trading scandal. He has of his Harvard baseball team, is an profit. broader product line, got things Still, the fact that Knight’s core taken it into currencies and bonds, odd fit at a trading firm like Knight. To salvage the firm, Mr. Joyce back on track. business is thriving during such a and has more than tripled the size of The son of a Boston utility worker, quickly halved headcount, to 600, Earnings more than doubled in bleak time for the rest of Wall Street the client base—to 2,000 hedge he got into trading only in the mid- and replaced many of its traders 2006. Last year, the core trading is turning heads. funds, brokerage firms and others. 1980s, after failing miserably as a with computers. He has since ex- business had revenues of almost “He came to transform Knight, “Tom is why Knight survived stockbroker. panded into new areas. In 2006, he $750 million, the highest since and he delivered,” says Niamh when it should have died,” says Jim “I wasn’t any good at cold-calling snapped up an electronic foreign- 2000. The chaos in the markets Alexander, an analyst at Keefe Cramer, the CNBC personality and and making the hard-sell,” he says. exchange business for about $80 through the fourth quarter helped Bruyette & Woods. “The firm is former hedge fund manager, who million and paid $18 million for an Knight’s trading volume more than knocking the cover off the ball.” traded with Mr. Joyce when he Coming into a mess electronic bond-trading operation. double, to a record $1 trillion. headed U.S. equity trading at Mer- knight was a mess when Mr. Joyce And he shelled out $60 million just There have been a few bumps, COMMENTS? [email protected] Hotels hit suite spot

Continued from Page 1 which cost as much as $400, and the Daniel Flannery, vice president and 1973 bottle of Cuvée Dom area general manager for The Ritz- Pérignon Oenothèque champagne, Carlton, who expects to quickly re- listed on the room-service menu at coup his hotel’s investment in the $1,200. new presidential suite. TOP HOTELS such as the Four Seasons, the Palace and The Peninsula (left to right) are rolling out the red carpet for wealthy foreign visitors. Fueling the trend are visitors Wooing the Russians from Russia and oil-rich nations in among the high rollers, Russ- the Middle East,who are benefiting ian travelers, in particular, are a rap- These visits by hoteliers are more clusive services of a personal butler The market could easily support from the skyrocketing price of idly growing group. Palace hotel ex- than courtesy calls: They can have a and a private chauffeur driving their more luxury accommodations, ac- crude,along with travelers from Eu- ecutives now travel to Russia several direct impact on hotels’bottom line. choice of a Rolls-Royce or two oth- cording to Bill Fischer, who owns a rope,where the dollar remains weak. times a year to woo these key clients. To put it another way, The Ritz- er luxury vehicles. travel and personal concierge busi- They are mostly wealthy families Just a few years ago, they visited an- Carlton would need to book 150 ness for billionaires.Membership in who are staying here for at least two nually. nights at its standard room rate to More luxury suites his Manhattan company, Fischer weeks,with an entourage of nannies The Ritz’s Mr.Flannery says he’ll equal the revenues it collects from a the four seasons reports that Travel, costs $100,000, in addition and personal assistants in tow.Some be traveling to Moscow this April for three-night booking for one of its 45% of its customers last year came to annual dues of $25,000. In order visitors stay for as much as six weeks the first time to visit the new prop- $12,500 suites. Just one night at the from outside the United States, to fulfill his clients’ needs, Mr. Fis- at a time to receive medical treat- erty there and to cultivate relation- Four Seasons Hotel New York’s new compared with 32% in 2006. Many cher often finds himself trying to ments. ships for the New York hotel. $30,000 penthouse—the most ex- of these foreign guests booked the convince New York hoteliers to tear All of the guests are treating “The Russian market is growing pensive in the world—represents 30 hotel’s four specialty suites, which down regular rooms to make way for themselves to the full array of at quite a clip,” says Mr. Flannery. nights’ worth of revenues from its cost about $11,000 a night; demand more suites. amenities offered by the premier Middle Easterners are an impor- standard rooms. increased 25% last year. “Sometimes, it takes a lot of hotels. tant segment of the market, too. Some of the extraordinary The market is so strong that hammering away at the hotel for “They spend a great deal of mon- Last year marked their return to the amenities of the nine-room pent- some hoteliers wish they had more them to understand that they have ey on our spa,on room service and at city, which they had avoided since house suite include a 360-degree luxury rooms. The Peninsula New to do something to change their in- our restaurant, Gilt,” says Joseph the Sept. 11 terrorist attacks. As he view of all of Manhattan, 25-foot York, for one, is considering build- ventory,” Mr. Fischer says. “My Gaeta, director of sales at The New made sales calls in that region, Mr. cathedral ceilings, surfaces inlaid ing more this year. The occupancy clients want to spend the money,but York Palace Hotel. Flannery says, many people confid- with semiprecious stones, and fab- rate for its $3,000-a-night deluxe you have to have the product.” Popular with this set are the ed in him that they felt comfortable rics woven with platinum and gold suite grew 15 percentage points last Palace’s in-room spa treatments, coming to New York again. threads. Guests also receive the ex- year over 2006 levels. COMMENTS? [email protected]

8 | Crain’s New York Business | February 18, 2008 CNYB 02-18-08 A 9 2/15/2008 2:22 PM Page 1

Jon McMillan, director of planning at Rockrose, says he hopes its NOMINATIONS SOUGHT Housing funds dry up 835-unit building on 10th Avenue between West 37th and West 38th SEEKING NEIGHBORHOOD STARS Continued from Page 1 Almodovar. “The affordable hous- streets wins funding, since excava- THE NEW YORK CITY Department of Small Business Services portant part of the city’s affordable ing dollar goes further in other types tion started last year. is calling for nominations of individuals, small businesses housing program because it brings of projects.” He says Rockrose pushed to start and community organizations for the 2008 Neighborhood down the cost of financing for devel- the project because the company Achievement Awards. opers.HFA financing is typically 1.5 No surplus left wasn’t sure of how the 421-a tax Nonprofit organizations, businesses, educational to 2 percentage points below market the lack of carryover funds abatement rules would be changed. Bloomberg rates.Several of the pending projects from previous years is also com- The cost of alternative financing institutions, business improvement districts, local depending on 80/20 financing are pounding the shortage in 80/20 fi- will determine what Rockrose will do development corporations, merchants groups and other near the Hudson Rail Yards on the nancing. For example, HFA carried if it doesn’t receive 80/20 funding. If neighborhood associations—as well as individuals—are West Side of Manhattan,an area the $291 million from 2006 to 2007. the project could still be profitable encouraged to apply or to nominate others in seven categories. city is keen to transform. The financing shortfall is com- with other types of financing, Mr. The awards will be presented at an event hosted by HFA relayed the bad news to de- ing just as there is a spike in demand McMillan says, it will proceed. If Mayor Michael Bloomberg and SBS Commissioner Robert velopers last month, noting that from developers, in part because of not, the company will put the proj- Walsh at Gracie Mansion in July. some projects would be given priori- zoning changes and tax incentives ect on hold. Applications can be found at www.nyc.gov/sbs. The ty, such as those with written state- that require projects be started by deadline for submissions is 5 p.m. on Monday, Feb. 25. Walsh ments from the city confirming the certain deadlines. COMMENTS? [email protected] project is consistent with its housing priorities.The HFA hopes to make a decision about which developments will receive funding in several weeks. Developers such as Glenwood Management Corp., the Dermot Co. and Rockrose Development Corp. hope their projects will be selected. Otherwise, they will have to find alternative financing that will boost their costs. Other options include downsizing the projects or de- laying them. Some may even be scrapped. Issuing more bonds isn’t possible. Known as private activity bonds, they are allotted under a federal program that allows states to is- LESS MONEY 80/20 bonds issued by the New York State Housing Finance Agency. 2003 $252.6 million 2004 $280.2 million 2005 $661.6 million 2006 $444.8 million 2007 $722.1 million 2008 $400.0 million* *Projected amount; $181 million has already been earmarked for existing projects. Source: New York State Housing Finance Agency

sue tax-free securities for private projects that boost economic development, including housing. New York state’s bond cap this year is $1.6 billion, about the same as its 2007 level. That money is divided up among city and state programs. Competing programs one factor for the decline in the 80/20 program is that the HFA is allocating a greater percentage of its tax-exempt bond financing to other programs that build more affordable housing units. “We have spent painful hours ag- onizing over how much [of the fed- Over $3 billion in sales in 2007. eral cap] to use for 80/20,” says Priscilla Almodovar, president and chief executive of the HFA. Almost all of the 80/20 projects are in Manhattan, where construction costs are high. The bond issues for 2007 ranged from $136 million to $268 million. Other HFA-funded developments, in which all of the units are affordable, tend to be built in the boroughs, suburbs or upstate where land acquisition and construction costs are lower. Those issues ranged from $3.3 million to $23.3 million. “[The 80/20 Program] is not the best use of our resources,” says Ms.

February 18, 2008 | Crain’s New York Business | 9 CNYB 02-18-08 A 10 2/15/2008 2:18 PM Page 1

RELATIONSHIP MAKERS: Community Connect’s CEO Benjamin Sun (left) and Marketing VP Kay Madati.

Hilton New York March 17-20 the intersection of search, marketing & commerce

Featured Speakers include: levinekarjean Exclusive Offer ß Jason Calacanis, Founder & CEO, Save 10% off the registration fee Mahalo.com, Inc. when you use discount code 10NY ß Nick Carr, author of The Big Switch Minority sites get ß Gordon McLeod, President, Save an additional $150 when you The Wall Street Journal Digital Network share of ad market ß Andrew Tomkins, Chief Scientist, register before Feb. 29 Yahoo! Research out history. BlackPlanet, other “In terms of who can penetrate Organic Listing • Paid Search • Podcast • Pay Per Click • Viral Marketing niche sites deliver our demographic the best out of all Vertical Search • Mobile Search • Local Search • Shopping Search target audiences the social networks, it was a no- Web Analytics • Social Media • Web 2.0 • SEO • Landing Page • Blog brainer,” says Aleesha Smalls, new for advertisers media marketing manager for Ro- Universal Search • Blended Search • Dynamic Websites • Audio Search • Click Fraud cawear,the clothing brand co-created by Grammy-winning rapper Jay- BY AMANDA FUNG Z. Rocawear, which worked with BlackPlanet on an online video con- in october, presidential candidate test last year, is planning a promo- SESNewYork.com Sen. Barack Obama created a pro- tional campaign on the site this year. file on a little-known social networking site, BlackPlanet.com. In Watching spending five months, he attracted nearly since it was founded in 1997, 450,000 friends, all of whom were Community Connect has raised potential political supporters. $25 million in funding from in- BlackPlanet isn’t as popular as vestors that include Sandler Capital MySpace and Facebook, but it has Management,a hedge fund and pri- become the fourth-largest social vate equity firm, and Comcast In- networking site in the nation and teractive Capital, the venture arm of the leading online destination for the cable giant. African-Americans. Its Manhat- In its early years, the company tan-based parent company,11-year- made money from the sales of online NYU Trinity Centre Is Now Open. old Community Connect Inc., is on personal ads and a partnership with track to surpass $20 million in rev- Monster.com. It also watched costs. A higher level of care, now in lower enues this year and has been prof- Benjamin Sun,chief executive and a Manhattan. NYU Trinity Centre is our itable since 2002, proving that there co-founder of Community Con- is room for smaller niche players in nect, says that as tech firms spent new state-of-the-art facility located in a the social networking market. money frivolously during the dot- historic landmark building downtown. Now “Community Connect is the lit- com boom, “we bought Ikea furni- tle company that keeps on going,” ture and watched every cent.” local residents and the corporate community says Debra Williamson, senior ana- But not everything has clicked can benefit from exclusive access to the lyst at research firm eMarketer. for Community Connect. While “They had one of the earliest social BlackPlanet has been successful,the expertise of NYU Medical Center. networking sites and have carved company has had trouble attracting • World-renowned physicians out a successful niche.” people to its other sites. Its second- BlackPlanet, which accounts for largest site, Latino social network • Most advanced technologies the majority of Community Con- MiGente.com, has only about 3.2 Care you nect’s business,had 18 million mem- million members. Its oldest site, deserve. • Fast, easy appointments bers at the end of last year.That’s not AsianAvenue.com, which targets a lot compared with MySpace’s 110 second- and third-generation Right in the Designed for your comfort and privacy, we million members and Facebook’s 64 Asian-Americans, has only about even offer personal concierge services to million. United Kingdom-based 88,000 members, and newer sites neighborhood. Bebo, the third-largest social net- Glee.com,for gays and lesbians,and coordinate all of your care. WiFi access is work, has 40 million members. Faithbase.com, for Christians, have available throughout the building for your about 53,000 and 60,000 members, Growing ad market respectively. convenience. Located at 111 Broadway, next but with ad spending on social Analysts say the weak MiGente to Trinity Church, NYU Trinity Centre is the media projected to reach $1.6 bil- figures reflect strong competition, new destination for advanced thinking in lion this year, up 78% from 2007, especially from MySpace, which even Community Connect will see dominates the Latino and Hispanic internal medicine, cardiology, gastroenterology, additional revenue. market. Community Connect at- pulmonary medicine and sports medicine. The company has positioned it- tributes AsianAvenue’s low figures self well by promoting its ability to to the fact that the Asian population For more information, or to make an provide specific audiences to mar- is small compared with other racial appointment, call 212-263-9797 or visit keters. Coca-Cola advertises on groups. BlackPlanet, and this month Wal- While the numbers may not be NYUTrinityCentre.org Mart is sponsoring Black History big, the sites still have plenty of in- Month on the site. Its “Six Degrees fluence, says Mr. Sun. “We are re- Trinity Centre of Separation”ad campaign includes sponsible for thousands of relation- interactive features like chat rooms, ships,” he adds. 111 Broadway New York, NY videos and blogs that highlight famous African-Americans through- COMMENTS? [email protected]

10 | Crain’s New York Business | February 18, 2008 CNYB 02-18-08 A 11 2/14/2008 3:55 PM Page 1

SMALL BUSINESS AT A GLANCE Music maker finds inner harmony BIG FOOTE FOUNDED 1994 EMPLOYEES 16 on external challenges rather than point, the duo had recently left an try contacts to start working almost Big Foote airs internal ones. established music house.They were immediately.One of their first proj- REVENUES $4 million

internal complaints That success has helped the determined to found a company ects was a Pepsi ad for advertising istockphotos company land blue-chip clients, in- with less infighting and more col- firm BBDO. Others quickly fol- to aid external focus cluding advertising firm Euro laboration. lowed. ple is its work with Euro RSCG on RSCG,and grow the business to the The daily grind can be fierce for a a rebranding campaign for Charles BY STEVE GARMHAUSEN point where it employs 16 full-time Using their contacts firm that turns out dozens of pieces a Schwab & Co.The “Talk to Chuck” staffers and an army of freelance ray, the company’s business-fo- month. The vast bulk are what the television ads feature jazz recorded n its 14-year history, Big musicians. In the process, annual cused executive producer, and Sher- company calls “ambulatory,” defined live to emphasize spontaneity. Foote has created everything revenues topped $4 million last year. man, its creative leader, charged as urgent, 11th-hour jobs. “Collaboration is a key point of from the rock ’n’roll track used Big Foote has come a long way $50,000 worth of recording equip- At the same time, Big Foote typ- differentiation for Big Foote,” says to hawk Maxwell House cof- from its early days in Sherman’s ment and began looking for business. ically has a group of in-depth proj- Michael Lee, executive creative di- fee to the techno music used in Gramercy Park apartment. At that The brothers had enough indus- ects with key clients.A prime exam- rector with Euro RSCG. Ithe trailer for the film Factory Girl. Along the way, it has produced something else entirely: an unusual model for running highly creative and hugely stressed companies. The story begins a decade ago, when business for the fledgling firm began to take off and its founders, brothers Ray and Sherman Foote, were struggling to keep up. At that crucial juncture, tensions between the two suddenly erupted. “We had hit a wall on synergy in our relationship,” explains Ray.“We needed to talk about things we had a hard time talking about with each other.” Rather than go their separate ways, they did something radical. That step not only saved their business, it became a key ingredient in their ongoing success. The brothers called in Lou Cox, a Manhattan- based clinical psychologist who has provided communication training to clients ranging from American Airlines to Aerosmith. Over the course of four multi- hour meetings, Mr. Cox explained to the pair how the best high-performance teams communicate. “He helped us realize there was a tremendous amount of unlocked potential,” says Ray. “The most powerful piece of it was separating the emotional stuff from the task.” Open culture the coaching worked out so well that within two months, the Footes expanded it to include the entire company. Today, Big Foote enjoys an unusually open culture in which all employees are encouraged to air small resentments. “We set it up in such a way that we could communicate and work better as a team,” says Ray. Individuals are encouraged to quickly discuss concerns about behaviors that help or hinder the work process. The meetings can take place one-on-one or within the weekly staff meeting. Mr. Cox left Big Foote with a set of tools that make the conversations productive. For instance, employees are encouraged to recognize and Is running your business getting in the way of running your business? name behaviors such as “the merry- go-round,” in which gripes endlessly circulate throughout the workplace. CREATE INVOICES • PAY BILLS • TRACK SALES Get back to business. “Naming it sort of decriminal- izes the fact that everybody is talking about this thing,” says Ray. And the behavior labels provide a shorthand with which to discuss a complex communication system, he You can buy QuickBooks at: QuickBooks.com adds. By clearing away the interper- sonal static, Big Foote staffers are better able to collaborate and focus

February 18, 2008 | Crain’s New York Business | 11 CNYB 02-18-08 A 12 2/14/2008 7:30 PM Page 1

VIEWPOINT Developers have rights, too editor in chief Rance Crain publisher Jill R. Kaplan

he big bad real estate landlords and Even worse, the new rule doesn’t apply to labor unions. EDITORIAL developers are at it again.This time, Unions with city contracts, including the United Federation editor Greg David deputy managing editors Valerie Block, they’re filing a lawsuit against the new of Teachers, District Council 37 and SEIU Local 1199,are Erik Ipsen campaign finance law to make sure they already the kingmakers in Democratic primaries for council assistant managing editor Robert Hordt can buy influence at City Hall. But before seats.They will now become more powerful in citywide contributing editor–reports anyone becomes too outraged over the races. Elizabeth MacBride columnist Alair Townsend efforts by these businesspeople to preserve Some might argue that labor unions’ clout comes as much senior reporters Aaron Elstein, Erik Engquist, a voice in city affairs, it’s important to understand how from their ability to deliver votes and to provide volunteers Lisa Fickenscher, Matthew Flamm, Samantha Marshall, Miriam Kreinin Souccar politicized and unfair the city campaign laws have become. as from their cash. Of course, they’re able to achieve those reporters Theresa Agovino, Barbara Benson, T Elisabeth Butler Cordova, Amanda Fung, The idea behind the law is reasonable—to ensure that things through proselytizing members. Just imagine the Hilary Potkewitz, Gale Scott, Matthew Sollars large contributors can’t purchase elections or decisions by public storm that would result if the chief executive of restaurant critic Bob Lape elected representatives.To that end, New York has, over Goldman Sachs art director Steven Krupinski deputy art directors Carolyn McClain, time, sharply limited the amount a person can contribute to The new rule encouraged employees Daniel Mednick staff photographer Buck Ennis a campaign and has created a public financing system that to support a specific copy desk chief Wendy Zuckerman rewards candidates who raise small donations from many gives unions candidate for mayor. copy editors Michele Arboit, people. The mayor admits Thaddeus Rutkowski even more power research editor Denise Southwood The latest twist, pushed by Mayor Michael Bloomberg that he would have associate research editor Adrianne Pasquarelli and Council Speaker Christine Quinn, virtually eliminates in citywide races preferred the rules to www.crainsnewyork.com contributions from anyone who does business with New apply equally to online reporter Kira Bindrim York. Executives with ties to the city can give only $400 to a business and labor but EDITORIAL AND ADVERTISING OFFICES 711 Third Ave., New York, NY 10017-5806 mayoral contender and $250 to council candidates. Other says that simply wasn’t editorial: 212.210.0277 Fax 212.210.0799 individuals can donate $4,950 and $2,950, respectively. politically possible. He advertising: 212.210.0259 Cable craincom nyk Many executives at big New York companies welcome the fails to grasp that the imbalance is a direct result of past Fax 212.210.0499 law, as it means they won’t get dunned endlessly. Real estate limits on donations and that this latest effort has exacerbated Entire contents ©copyright 2008 Crain Communications Inc. All rights reserved. executives are another story, because their entire business the problem. ®CityBusiness is a registered trademark of MCP depends on the actions of city officials—whether regarding The industry is right to mount the challenge. Finance Inc., used under license agreement. TO SUBSCRIBE: zoning changes, building permits or tax incentives.They laws should apply equally to all the city’s power brokers. Call 888.909.9111; fax 313.446.6777. need to be able to make their case, and campaign $3.00 a copy, $59.79 one year, $109.79 two years. www.crainsnewyork.com contributions are one way to guarantee access. COMMENTS? [email protected] ADVERTISING AND MARKETING advertising director Jeff Adler senior account managers Robert N. Grossman, William E. Squitieri LETTERS TO THE EDITOR account executives Andrew Carlin, Robert Christiaanse, Irene Irvill, Courtney McCombs, Jennifer Siniscalchi western account manager Ellen Mazen (Los Angeles) 323.370.2477 sales manager, classified Question on HIP conversion plan print & online John Gallagher newsletter product manager Catherine Evans Gittens SHAREHOLDERS MANY DONORS dedicated to serving the needs of SEPARATION BETWEEN sales coordinator, print & online VS. MEMBERS to John Edwards’ vets from the current wars need BELIEF AND WORK Lulé Haznedari campaign have our support, because the numbers sales coordinator Anita Perrino there is an important question migrated to of “newly disabled” will the business lives story on credit Pat Grondziak 313.446.6082 Barack Obama. marketing director Amy Crossman that should be asked about the undoubtedly rise. religion in the Jan. 28 issue marketing manager Jill H. Bottomley plans for HIP and GHI to go In 1995, in response to a neglected to devote any attention marketing coordinator Jenny Mashberg public (“The Insider,” Feb. 4). severely unmet need, Services for to the possible adverse effects of circulation manager Andrea Richardson The first obligation of a private the UnderServed built and opened this development on nonreligious assistant circulation manager Rosalie Ford corporation is to its shareholders. a residence in Brooklyn dedicated employees, especially when the How will HIP balance the needs to housing and supporting the boss is the one holding “voluntary” general manager, interactive Marc Minardo

of members—I am one—with the bloomberg news mental health needs of 48 prayer or religious discussion desires of stockholders? veterans. (We serve an additional meetings. NEW YORK PRODUCTION cy adler wheelchair users, etc. Or that 126 vets in our other housing There is ample documented production and pre-press director they’re not smart enough to programs.) precedent in both the public and Michael Corsi advertising production manager CANDIDATES DON’T pretend they care for the sake of As Americans, we are all private sphere for retaliatory action Marilyn DeMilta MENTION THE DISABLED badly needed votes. (government and private citizens) against employees who fail to If Obama and Clinton genuinely challenged to remember the genuflect or bow their heads in PUBLISHED BY CRAIN COMMUNICATIONS INC. the feb. 4 article “Edwards’ want to reduce poverty in America, sacrifices of our veterans and to accordance with the wishes of chairman Keith E. Crain president Rance Crain donors move to Obama” notes they could start by addressing help them recover and rejoin their superiors who actively seek to secretary Merrilee Crain concern about the disparity employment and accessibility communities. proselytize their underlings. treasurer Mary Kay Crain between the very wealthy and the issues for the large and consistently donna colonna dennis middlebrooks executive vp, operations William Morrow very poor. I wonder why Sens. ignored disability sector. Chief executive Freethinking-Activist- senior vp, group publisher Gloria Scoby Hillary Clinton and Barack robert s. cole Services for the Underserved Nonbelieving New Yorkers group vp, technology, circulation, manufacturing Robert C. Adams Obama continue to ignore Co-founder vice president/production & Americans with disabilities, a Westchester Disability Advocacy manufacturing David Kamis population of 56 million, a jobless Partnership chief information officer Paul Dalpiaz rate close to 70% and a poverty WHAT’S COMING UP IN CRAIN’S? corporate circulation director Patrick Sheposh rate three times that of the GIVING VETERANS Meeting 40 Small population at large. NEEDED SUPPORT founder G.D. Crain Jr. (1885-1973) I find it hard to believe that Planners Under business chairman Mrs. G.D. Crain Jr. (1911-1996) they’re not interested in helping the feb. 4 article “Private Guide 40 report people who are blind, deaf, groups fight for vets” struck a Feb. 25 March 3 March 10 developmentally disabled, chord with us. Organizations

12 | Crain’s New York Business | February 18, 2008 CNYB 02-18-08 A 13 2/14/2008 7:32 PM Page 1

THE STAUBACH COMPANY Y WOULD LIKE TO THANK OUR CLIENTS FOR OUR CONTINUED SUCCESS AND GROWTH IN NEW YORK

father, Charles—who guided his rise through the ranks despite his legendary temper tantrums and less We are pleased to welcome than all-out commitment to the job. the following professionals Sports-obsessed Charles Dolan had always wanted to own the city’s to the Staubach NY team: great sports teams, repeatedly asking George Steinbrenner if he want- KELLY BRENNAN ERIC REIMER ed to sell the Yankees. When the Garden came on the market,Cable- vision outbid numerous other suit- ROBERT CORBI STUART RIEMER ors, and Charles installed his son as the top man. Soon after, the people who had made both the Knicks and ZEV HOLZMAN JOHN SULLIVAN the Rangers title contenders were shown the door. It’s been pretty much downhill ever since. ELYSE JOHNSON ERIC THOMAS The Dolan Way was most prominently on display when Jim Dolan decided that the mayor’s plan EDWARD KENT ALEX WAYMAN to build a stadium on the West Side to host the Jets football team and the Olympics could siphon off revenues JASON LUND GILES WRENCH from the Garden. He spent tens of millions of dollars to block the pro- john h.john howard posal in one of the bitterest and most expensive battles in the city’s history. 1,600 people. While neither side conducted itself well, it was Mr. Dolan who 68 offices. raised the ante with exaggerated Tower 49 12 East 49th Street What Isiah means ads. His large campaign contribu- One client. st 31 Floor tions to Assembly Speaker Sheldon New York, NY 10017

Silver guaranteed that the speaker HE STAUBACH COMPAN You. 212.418.2600 would kill the stadium plan, and the www.staubach.com

for Farley plan T speaker continues to protect Mr. Dolan’s interests. irtually every night, Madison Square Garden No other New York businessman rocks to chants of “Fire Isiah.’’In one sense,des- would have taken on the mayor like perate fans are taking out their frustrations on that. Anyone else would have com- promised on an agreement that Knicks coach Isiah Thomas for assembling a group would have tied constructing a sta- Crain’s Business of misfits who have produced one of the worst dium to building a new arena for the Breakfast Forum: records in the NBA even though they enjoy some of the high- Knicks and the Rangers. V Consider this story from a est salaries in the league. restaurateur who was approached to put a concession in The World’s In another sense, the scheme to restore the Most Famous Arena, as part of an Meet chant is a plea to Gar- Farley Post Office effort to upgrade the lackluster food den boss James Dolan across from the Garden, offerings. Talks dragged on for Insurance to take the only logi- rebuild Pennsylvania months, until the restaurateur cal step to rescue the Station and revitalize looked at his counterpart from the team. Unfortunately, the surrounding area— Garden and said it was time to do a Superintendent Mr. Dolan’s stubborn all of which depend on deal in which both sides could make support for his coach reaching an economi- money. Eric Dinallo seems to strengthen as cally reasonable deal “You don’t understand,’’ said the the clamor in the Gar- with Mr.Dolan to move Garden’s representative. “We make den intensifies. the Garden to the Far- all the money here.’’ Dinallo will discuss efforts Date: Wednesday, February 27, 2008 Real estate titans GREG ley building.Good luck. Messrs. Roth and Ross need to Place: Hilton New York to streamline regulation of Steve Roth and Steve DAVID The wayward son of spend more time at the Knicks 1335 Avenue of the Americas Ross need to ponder the one of the pioneers of games to realize what a gamble they New York’s crucial financial between 53rd and 54th Sts. meaning of the con- cable television, Jim are taking in relying on Jim Dolan. services sector, his efforts to Time: frontation between fans and Mr. Dolan cleaned up his act and was solve the bond insurance 8-8:30 a.m. Networking Breakfast Dolan.They are working on a grand made a Cablevision executive by his COMMENTS? [email protected] 8:30-9:30 a.m. Program problem, the continuing Cost To Attend: controversy over health $65 for individual ticket(s) CRAIN’S ONLINE POLL insurers rates, profits and if pre-registered by Feb.20; policies and the effort to $70 thereafter. DO YOU WANT TO KNOW CALORIE COUNTS AT RESTAURANTS? reform malpractice laws, $600 for table(s) of ten if pre-registered by Feb.20; among other topics. He will A FULL 70% $700 thereafter. of the 373 respondents want be questioned by Crain’s to know the calorie content of their meals. To register go to crainsnewyork.com, Yes, it’s editor Greg David and or fax your business card and credit More than 40% say that having the always good another journalist. card information to “Dinallo Breakfast” information might make them change their Yes, and I 29%. to know the at 212-210-0499. might change .41% facts orders; more than a quarter think that what I order SPONSORED BY regardless, it’s good to know the facts. But No, I am there to 30% of respondents say they eat out in 30%. indulge and order to splurge, and they’re not interested prefer in the details. ignorance

For this week’s question: Go to www.crainsnewyork.com/poll to have your say.

February 18, 2008 | Crain’s New York Business | 13 CNYB 02-18-08 A 14 2/15/2008 2:18 PM Page 1

obstetrics coverage drove about half of that increase, he says. “We’ve got one of the best safety CONGRESS Residency requirement THE INSIDER rates of any hospital,’’ says Dr. DEMOCRATS BELIEVE that they can oust Safyer, who also notes Bronx juries’ five of the six state Republican House by Erik Engquist and Matthew Sollars reputation for granting large members, but they must first settle a judgments to plaintiffs. dispute over who should challenge Mario Cuomo Former Gov. Rep. Vito Fossella (below) for the seat proposed a similar plan in 1993, but that represents Staten Island and parts the Legislature didn’t approve it. of Brooklyn. State mulls no-fault Brooklyn Councilman Domenic State to city: Recchia, the Democratic birth injury fund Congressional Campaign Committee’s Sell parcel or else preferred candidate to replace Mr. Fossella, doesn’t actually live in the medical malpractice- congressional district. DCCC Chairman Chris Van Hollen says that won’t be a reform task force convened with opposition building to the state’s proposed sale of a parcel of problem, as Mr. Recchia lives just across the street from the district and by Insurance Super- land north of the Jacob K. Javits represents part of it on the council. He also notes that Mr. Recchia has raised A more than $200,000 without even committing to run. intendent Eric Dinallo (left) is Convention Center, look for the expected to recommend that New Spitzer administration to play But an aide to Mr. Recchia’s prospective opponent in the Democratic hardball. It might soon tell the city primary, Stephen Harrison, says Mr. Fossella would have York establish a no-fault that selling the land is the only way a “field day” with the fact that Mr. Recchia wouldn’t be able compensation fund for babies to get the money for a second to vote for himself. Mr. Harrison, an attorney and former hiroko masuike/the new york times/redux new masuike/the york hiroko injured at birth.The goal is to station on the No. 7 line extension. Bay Ridge community board chairman, got 43% of the vote remove such cases from the litigation process, which often So far, state officials have spoken against Mr. Fossella in 2006 without support from the vaguely of “transit improvements” DCCC, which didn’t consider him a viable candidate. leads to huge jury awards. but refrained from an explicit Ethnic politics also play a role: Democrats believe an Instead, families would receive immediate and continued declaration about the second Italian-American would pose the strongest challenge. financial assistance to care for the children. Set fees would be station.The MTA’s current plan Elsewhere, Democrats are willing to concede that Long Island Republican paid to lawyers for helping families through the system and to calls for building the tunnel to the Peter King is safe. His opponent in 2006, Nassau County Legislator David site of the proposed station, at 10th Mejias, is expected to run for state Senate. doctors for providing medical care. It’s hoped that the reform Avenue and West 41st Street, but Rep. Steve Israel, the DCCC’s top recruiter in the Northeast, says the would reduce the high cost of medical malpractice insurance says there is not enough money to competitive presidential primary has prompted thousands to register as for obstetrical care. actually to finish a station there. Democrats—4,000 Suffolk County residents in the past two months alone. Meanwhile, Mayor Michael Formerly off the DCCC’s radar, they will be targeted by direct-mail campaigns “We can’t comment until we see the final product, but this is Bloomberg and other city officials this fall. a solution we have been recommending,” says Dr. Robert have come out in opposition to the

Goldberg, president of the Medical Society of the State of New sale of the parcel because it would map: lindström bekka preclude any expansion of the York.The American College of mothers and babies.” convention center in the future. parcel, which is expected to bring Supreme Court judges. Obstetricians and Gynecologists’ Dr. Steven Safyer, president of Meanwhile, on Tuesday, Gov. about $300 million. For each judicial vacancy, the New York chapter confirmed only Montefiore Medical Center, hopes Eliot Spitzer severed a legal tie The proceeds, along with $100 party must now choose from up to that the plan was under discussion. that such a reform is in the works. between parcels to the north and million from the state Mortgage five candidates approved by its The New York State Trial Lawyers The center’s medical malpractice south of the center so that they can Agency, will go to Spitzer’s new independent screening panel.The Association says it opposes the coverage has more than doubled be sold separately.The action clears Housing Opportunity Fund. panel could previously nominate proposal becauseCRAINS_1-28_ it would unidata_brain_ad-outlined.ai “hurt since 63.2566.6770.71 lpi 2005, 71.57°18.43°0.00°45.00° 1/23/2008 to 1/23/2008 $91 million, 4:00:02 4:00:02 PM PM and the way for the sale of the southern three, but the party wasn’t bound by Process CyanProcess MagentaProcess YellowProcess Black its recommendations. Deadwood cleared Judicial scandals in Brooklyn led from Empire Zone to a lawsuit that nearly dismantled the system statewide, but one party twenty-eight New York City insider says screening is actually companies could be axed from the much looser in the Bronx and state’s Empire Zone program for Queens. A Queens official scoffs at not meeting employment targets that notion. they agreed to in return for tax breaks. Most of the businesses are in Space-age Brooklyn and the Bronx. More are taxi access likely to be decertified soon, says a spokesman for the Empire State the high-tech mayor has found a Development Corp. futuristic solution for disabled taxi Statewide, 500 companies patrons: a dispatch system that dropped out right after the ESDC combines 311 and a global sent 3,000 letters last year.The positioning system. agency also established new rules A two-year pilot project is this month for businesses entering planned in partnership with a livery the program and estimates that it company that has mastered the will save a total of $50 million a technology, says Taxi & Limousine year from decertifications and rule Commission Chairman Matthew changes. Daus. The Empire Zone program, Disabled people will be able to which has grown 10% to 15% call 311 to request a wheelchair- annually in recent years, cost accessible taxi. A GPS will identify taxpayers $523 million in 2007. It the closest one, which will be has been assailed by good- dispatched by radio. Currently, cabs government groups, state can only be hailed, and just a small Comptroller Thomas DiNapoli, fraction can handle wheelchairs. Assemblyman Richard Brodsky and the Spitzer administration itself for a lack of accountability. Getting Brooklyn bench straight the brooklyn democratic organization is still trying to undo its reputation—undeserved, it ON CALL: The city will test a high-tech system says—for picking corrupt state for dispatching taxis for the disabled.

14 | Crain’s New York Business | February 18, 2008 CNYB 02-18-08 A 15 2/14/2008 3:53 PM Page 1

THE WEEKS AHEAD

THIS WEEK’S EVENTS finding retail opportunity in an (212) 210-0739 or Fee: $20 members, $45 nonmembers. (917) 833-4860 or FEBRUARY 19 economic storm. 12 p.m. to 2 p.m., www.crainsnewyork.com/events. (212) 868-1368. [email protected]. Gold Place Network holds networking Williams Club, 24 E. 39th St., sixth FEBRUARY 27 FEBRUARY 27 FEBRUARY 27 reception. 8 a.m. to 10 a.m., Café Metro, floor. Fee: $50 members, $75 New York Junior League holds course American Land Services holds course on The Five O’Clock Club holds seminar 14 E. 42nd St., lower level. Fee: $10 nonmembers. (201) 692-8087 or on leadership through governance air rights and development rights deals. on developing new momentum in a job members, $15 nonmembers in advance retailmarketingsoci@ training. 6 p.m. to 8:30 p.m., 130 E. 8:30 a.m. to 12 p.m., 530 Fifth Ave., search campaign. 6:30 p.m. to 8:30 p.m., only. (212) 465-8080. retailmarketingsociety.org. 80th St. Fee: $275 members, $300 15th floor. Free. (212) 239-1000. 11 Penn Plaza, fifth floor. Fee: $50. FEBRUARY 20 FEBRUARY 26 nonmembers. (212) 288-6220, ext. 317, FEBRUARY 27 (914) 788-5482 or [email protected]. New York Public Library’s Science, New York County Lawyers’ or [email protected]. Small Business Development Center FEBRUARY 28-29 Industry and Business Library holds Association holds course on ethics. FEBRUARY 27 holds workshop on how to finance a Wharton School’s Zicklin Center for course on creating mailing lists. 6 p.m. to 9 p.m., 14 Vesey St. Fee: $125 Asian Women in Business holds small business. 10 a.m. to 1 p.m., CUNY Business Ethics Research, Baruch 3:15 p.m. to 4:30 p.m., 188 Madison members, $165 nonmembers. workshop on mastering the art of public on the Concourse, 2501 Grand College’s Zicklin School of Business and Ave., lower level. Free. (212) 592-7000 (212) 267-6646, ext. 215. speaking. 6 p.m. to 9 p.m., Dewey & Concourse, room 340, Bronx. Free. the Center for Political Accountability or [email protected]. FEBRUARY 27 LeBoeuf, 1301 Sixth Ave., 23rd floor. (718) 960-8697 or hold conference on money, politics and FEBRUARY 20 Crain’s New York Business holds [email protected]. corporate risk. 9 a.m. to 5 p.m., Baruch Networking for Professionals holds networking breakfast and program with More meetings online at FEBRUARY 27 College, 151 E. 25th St., Newman networking reception. 1 p.m. to 3 p.m., insurance superintendent Eric Dinallo. www.crainsnewyork.com Covenant Seven Inc. holds marketing Conference Center, room 750. Free. Angelo & Maxie’s, Park Avenue South at 8 a.m. to 9:30 a.m., Hilton New York, Click on “Events” seminar. 8 a.m. to 10 a.m., Conference (646) 312-3231. East 19th Street. Fee: $44.90 members, 1335 Sixth Ave. Fee: $65. Center, 575 Madison Ave. Fee: $160. —adrianne pasquarelli $54.90 nonmembers. (212) 227-6556. FEBRUARY 21 State Bank of Long Island holds seminar on wealth transfer and estate planning. 8 a.m. to 10:30 a.m., Bernstein Global Wealth Management, 1345 Sixth Ave., 41st floor. Free. (516) 240-6220 or [email protected]. FEBRUARY 21 Lower Manhattan Business Solutions Center holds workshop on strengthening sales. 2 p.m. to 4 p.m., 110 William St., fourth-floor conference room. Free. (212) 618-8862 or [email protected]. FEBRUARY 21 School of Public Affairs at Baruch College holds seminar on nonprofit outsourcing. 4 p.m. to 6 p.m., 135 E. 22nd St., room 301. Free. (646) 660-6743 or [email protected]. FEBRUARY 25-MARCH 2 FEBRUARY 25 The Center for Innovation and Leadership in Government at the School of Public Affairs at Baruch College holds program on congestion pricing. 5:30 p.m. to 7:30 p.m., Newman Conference Center, 151 E. 25th St., seventh floor. Free. (646) 660-6851 or [email protected]. FEBRUARY 26 Professional Women in Construction holds networking reception. 5:30 p.m. to 8 p.m., Club 101, 101 Park Ave. Fee: $65 members, $85 nonmembers. (212) 486-7745 or pwcusa1@aol.com. FEBRUARY 26 Seidbet Associates holds workshop on developing career-resiliency tools. 7 p.m. to 9 p.m., 45 E. 33rd St., room 209. Fee: $80. (212) 260-2026 or [email protected]. FEBRUARY 26 New York Real Estate Women holds forum with Juliann Bergano of Urban Residential. 6 p.m. to 8 p.m., Sonnenschein Nath & Rosenthal, 1221 Sixth Ave. Fee: $35 members, $65 nonmembers and $30 graduate students in advance only. (212) 499-6565 or [email protected]. Business Executives. Whatever you need, it’s all within reach. By day, we have the FEBRUARY 26 Consulate General of the Czech convention space and hotel rooms to make any size business trip a success. And at night, your Republic and Strategies for Growth team can dine at gourmet restaurants, play at casinos or cheer on one of our pro sports teams. hold program on how to survive the impending economic slowdown. 12 p.m. Start planning your next meeting at explorestlouis.com or call 800-916-9637. to 2:30 p.m., 1109 Madison Ave. Free. Registration required. (877) 838-1838 or [email protected]. FEBRUARY 26 Retail Marketing Society holds lunch on

TO LIST YOUR EVENT

Crain’s lists business meetings online and includes them in the print edition on a space-available basis. Events in New York City with admission fees of less than $300 are considered for the print publication. Listings can be submitted only through the Crain’s Web site. To submit a calendar listing, go to www.crainsnewyork.com and click on “Events.” Sponsors have a choice of several free or paid listing options. All business events will be posted online within two business days. Crain’s can neither confirm receipt of listings nor say if or when event listings will appear in the print edition.

February 18, 2008 | Crain’s New York Business | 15

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WEEK IN REVIEW For daily news updates, go to www.crainsnewyork.com

Glenn Rosenbloom to the newly ECONOMIC SPOTLIGHT created position of president, one day after its Maxim Group publisher, Rob Gregory, left the company to pursue other opportunities. Mr. Rosenbloom will report directly to Alpha Chief Executive Kent Brownridge. Tolkien family sues for movie money time warner inc.’s New Line Cinema was sued for $150 million by relatives of Lord of the Rings author J.R.R.Tolkien.The family members, who say they haven’t received money from movies based on the books, want to terminate New Line’s rights to make Cuomo to sue UnitedHealth Tolkien’s The Hobbit into a film. NEW YORK ATTORNEY GENERAL ANDREW CUOMO will sue Teen Vogue UNITEDHEALTH GROUP INC. and subpoena 16 other insurers names publisher to investigate reimbursement practices that allegedly condé nast publications inc. cheated customers out of hundreds of millions of dollars. named Laura McEwen publisher Economy Watch Mr. Cuomo said he plans to sue UnitedHealth because it of Teen Vogue. Ms. McEwen, formerly associate publisher of Area prices held steady in December, as lower shelter and apparel costs offset unfairly reduces the allowable charge for providers not in its Vogue, succeeds Gina Sanders, the other categories. The NYC and U.S. jobless rates rose by 0.3 percentage points. network, forcing consumers to pay a larger percentage of teen title’s founding publisher, NOVEMBER ’07 DECEMBER ’07 COMPARISON the cost. who left last month for Lucky magazine. NY area inflation change +0.4% 0.0% +3.7%1 bloomberg news NYC unemployment rate 5.1% 5.4% 5.0%2 Morgan job cuts Yahoo Inc.The effort to thwart Ellen Tracy sold DECEMBER JOB TOTAL3 12-MONTH CHANGE Microsoft Corp.’s $44.6 billion NYC employment 3,650,700 +52,900 morgan stanley said it will apparel maker Liz eliminate 1,000 jobs by scaling Claiborne Inc. agreed to sell 1-Inflation rate for the latest 12-month period. 2-U.S. unemployment rate. 3-End-month figure, not seasonally adjusted. back its U.S. residential mortgage its Ellen Tracy brand to a business and closing its U.K. group of investors for up to NYC Hotel Stats Broadway Stats Advantage Home Loans unit.The $42.3 million in cash and firm will continue to service loans contingency payments.The Occupancy dipped in December, Attendance and box-office gross through its Saxon Mortgage group of purchasers includes but room rates held steady, says PKF climbed in the week ended 2/10, Services Inc. unit and to offer Radius Partners, William Consulting. The full-year figure for recovering to levels somewhat high- residential mortgages to retail Sweedler of Windsong occupancy was 86.5%, versus 85.6% er than those for the comparable brokerage clients. Brands, Barry Sternlicht and in 2006; the average room rate was week last season, says The League of

buck ennis Marvin Traub. $303.99, compared with $269.97. American Theatres and Producers. MYSPACE OR YOURS? Yahoo and News Corp. talk. Roger Clemens Books go digital takes the stand bid for Yahoo was called a long harpercollins publishers will former new york yankee Roger shot by industry insiders. offer free electronic editions of Clemens testified in a select books on its Web site for congressional hearing that he had one month at a time. ... Random never used steroids or human E*Trade Financial House Publishing Group said it growth hormone, denying asset sale will sell individual chapters of accusations made by former nonfiction best-seller Made to trainer Brian McNamee and e*trade financial corp. agreed Stick for $2.99 each online, to former teammate Andy Pettitte. to sell nearly all the assets of its gauge reader demand for digital RAA Wealth Management unit to text. Dallas-based PHH Investments Citi, JPM help Ltd. for about $80 million.The Bond insurer mess Capital IQ’s Weekly Deals Report homeowners sale, expected to close in April, is part of a broader turnaround plan efforts to rescue embattled TRANSACTION SIZE citigroup inc. and J.P.Morgan instituted by E*Trade last year. bond insurers accelerated, after COMPANY/LOCATION (in millions) BUYER/INVESTOR TRANSACTION TYPE Chase & Co. joined four other Gov. Eliot Spitzer warned that Financial Security Assurance $500.0 Dexia SA GCI banks to launch U.S.Treasury New York regulators would step in Holdings Ltd. Secretary Henry Paulson’s “Project Lerach sentenced soon if the companies couldn’t Manhattan Lifeline,” a program offering to prison assure their solvency. MBIA Inc., Fortunoff Fine Jewelry & Silverware Inc. $80.0 Lord & Taylor SB M&A seriously delinquent borrowers the Ambac Uniondale, L.I. chance to modify their loans and former milberg weiss partner Financial Howcast Media Inc. $8.0 Tudor Investment Corp. GCI imposing a 30-day freeze on William Lerach was sentenced to Group Inc. Manhattan foreclosures.Together, the six two years in federal prison for his and FGIC Ringleader Digital $6.0 W2 Group Inc. GCI Manhattan banks account for half of the U.S. involvement in a kickback scheme Corp. rejected mortgage market. that netted the firm $250 million. an offer from Greater China Acquisition Corp. $0.1 Individual investors SB M&A Manhattan He also was ordered to serve two billionaire ASPEED Software Corp. n/a SIMtone Corp. SB M&A years’ probation and to complete Warren Manhattan Yahoo, News Corp. 1,000 hours of community service, Buffett (left) Wellgate Products n/a Lil’ Drug Store Products Inc. SB M&A in talks and he was fined $250,000. bloomberg news to assume Manhattan responsibility for $800 million of Selected deals announced during the week of Feb. 3 for companies headquartered in metro New yahoo entered talks with News Alpha president municipal bonds that they had York. n/a Not available. GCI: Growth capital investment represents new money invested in a com- Corp. to take over the MySpace guaranteed. pany for a minority stake. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing shares of a company without the participation of a financial buyer. social networking site and other alpha media named former —from staff reports and

bekka lindström bekka assets in return for a stake in Disney publishing executive bloomberg news reports

16 | Crain’s New York Business | February 18, 2008 Project14 11/21/06 5:40 PM Page 1

Competitive Advantage.

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REAL ESTATE INSIDE CoStar’s top Manhattan leases, top NYC sales in 2007 PAGES 24, 26 “In rebuilding after Sept. 11, it was like local architects weren’t good enough.” —Jonathan Rose, developer, Page 28 Offshore investors hit $10B mark Boom in building sales could slow if recession takes hold

BY CARA S. TRAGER enta corp.of barcelona, spain, is shopping for New York real estate—and it’s not just kicking the tires. After looking at more than 500 deals over the past 10 months, it is buying five residential and commercial properties in Manhattan, Rincluding an office building near Rockefeller Center. The firm is also upgrading its New York headquarters, moving to a 3,000-square-foot office from a 500-square-foot space.The office will serve as its command center for more acquisitions. “We are here because we strongly believe in this city,” says LOOKING FOR DEALS: Renta Corp.’s Eduardo Eduardo Rabassa, Renta’s managing director for the U.S. Rabassa says his market. “New York is a well-known brand name.” Barcelona-based firm is in the process of buying five Manhattan has long been a mag- Canada.Armed with oodles of cash, Manhattan properties. net for foreign investors. While the these investors are on a nonstop mighty yen 20 years ago drove shopping spree, acquiring commer- Japanese investors to cial sites throughout the swoop into New York and city, including well-known acquire iconic landmarks FOREIGN properties such as the Lip- like Rockefeller Center, CURRENCY stick Building and the for- other economic factors, in- mer headquarters of The cluding the weak dollar, Residences New York Times Co.. the city’s strong real estate attract foreign According to Real Cap- market and a surge in buy- buyers Page 23 ital Analytics, foreign ac- ers’ wealth from oil and quisitions in the city other commodities, are attracting a reached record proportions last year different batch of foreign investors. —with offshore investors purchas- The new buyers are coming from ing 31 commercial buildings valued such places as Dubai, Israel, Italy, collectively at $9.9 billion, com-

david neff david Ireland,Spain,China,Australia and See OFFSHORE on Page 22

no affordable options. The couple, Inventive retailers who already had a gallery in West- Putting find ways to get port, Conn., realized they would have to be flexible if they were ever around high rents to find a retail location in the city. the shop Hitting the pavement, Ms. Ross BY CATHERINE CURAN spotted a sign for a listing by Cogent Realty Advisors broker Mitchell on the vintage poster dealers Jodi and Waldman, who showed her space at Mickey Ross drew up a wish list last 532 Madison Ave. spring for their first Manhattan It was 2,000 square feet and had store: 1,500 square feet, ground 11-foot ceilings, large windows and fourth floor, East 50s or 60s, maximum an- an annual rent of $120,000—well nual rent of $250,000. within their budget. But it had a The few brokers who responded drawback:It was on the fourth floor, floor to the Rosses’ calls and e-mails had See WHEN THE RENT on Page 20 ON DISPLAY: A poster gallery makes use of window space to show off its inventory.

February 18, 2008 | Crain’s New York Business | 19 CNYB 02-18-08 A 20 2/13/2008 5:41 PM Page 1

REPORT REAL ESTATE

three blocks north. If moving to a side street is still When the rent goes up, retailers get creative too costly, some retailers—like the Rosses—consider taking something other than a ground-floor Continued from Page 19 in midtown can command $1,500 a For example, Daffy’s couldn’t af- that corridor is now about $300 a space. Whole Foods Market proved better suited to an office than a square foot—the nation’s highest re- ford to renew its lease for 30,000 square foot. that a retail business doesn’t have to store. The Rosses took it anyway, tail rent. square feet at Fifth Avenue and East While fashion titan H&M took be at street level when it opened in signing a 13-year lease. The first option for those look- the lion’s share of the space, in fall the basement of the Time Warner Faced with soaring rents, inde- ing at a big rent hike is to search for 2006 the landlord carved out about Center and did well. pendent retailers that want to set up cheaper space, which might mean ‘A lot of tenants 18,000 square feet for Daffy’s be- Taking a less prominent space shop in Manhattan but don’t have going to another part of Manhat- hind and below H&M, with an en- means spending more to ensure that national chains’deep pockets are be- tan. If staying in a particular neigh- have gone off trance on East 18th. customers can find you.The Rosses ing forced to get innovative. borhood is important, however, are allocating $100,000 that they many owners explore downsizing. major avenues’ Same address, new door might have spent on rent for mar- Location, location Additionally, some in prime avenue “we came up with a strategy for keting, including brochures and in- retailers whose leases are expir- locations find that they can get a for side streets Daffy’s that enabled them to remain store events. ing are dealing with the same sticker better deal on a side street. at 111 Fifth Ave., to maintain their “Not being on the ground floor shock. Rents have climbed 26% in “A lot of tenants have gone off loyal customer base and benefit from we have to promote ourselves, and the borough in the past year and are major avenues,”says Robin Abrams, the new co-tenancy with H&M,” that’s a trade-off,” Mr. Ross says. up 56% in the past five years. And executive vice president of Lansco says Robert Futterman, chairman of With foreign retailers and na- while the average retail rent in Man- Corp. Business owners can save as 18th Street,where it had been for 20 Robert K. Futterman & Associates, tional chains continuing to gobble hattan is $133 a square foot, it is much as 50% on rent by relocating years. Sources say the clothing re- who brokered the deal with landlord up the most prominent locations, much more than that in the major re- from an artery like Columbus Av- tailer had been paying about $75 a The Winter Organization. brokers expect to see even more cre- tail corridors. Parts of Fifth Avenue enue, she says. square foot, and the market rate for High-end retailer Fortunoff also ative deals. found a way to stay in a neighbor- “It is clearly going to be the wave hood in which it has deep roots. It of the future,”says Jeffrey Roseman, LANDLORDS LOBBY TO CREATE MORE RETAIL SPACE recently moved from a space on executive vice president and princi- Fifth Avenue and East 54th Street, pal of Newmark Knight Frank. RETAILERS AREN’T THE ONLY ONES getting creative. With which it had occupied since 1979, rents reaching unprecedented heights, Manhattan to a location on West 57th Street, COMMENTS? [email protected] landlords are devising unusual ways to carve out more space. The latest trend: putting stores in office buildings’ EXPLORING CAREERS commodious lobbies. And retailers, eager for a foothold in crowded, high-grossing corridors, are snapping up the new spaces. HOSTS SOUGHT FOR HIGH SCHOOL GROUPS Teen-oriented clothing chain Billabong recently did a THE GREATER NEW YORK COUNCILS’ Exploring program is seeking deal for about 1,500 square feet in the foyer of 112 W. businesses to host educational sessions offering high school students the 34th St. And a Circuit City opened in December at 521 opportunity to explore various industries and make better decisions about Fifth Ave., at East 43rd Street, in part of the lobby and possible career choices. what had been second-floor office space. The Exploring program puts together groups of 15 to 25 students

This kind of makeover works especially well with buck ennis interested in specific fields, such as journalism, computing services, law or corner locations, which can accommodate a retail 112 W. 34th St. restaurant operations. entrance on a coveted avenue and an office entrance on The student groups meet at the host businesses after school for four or the side street. Landlords are increasingly considering That part of the thoroughfare had evolved from a low- more sessions, learning about career ladders, educational requirements, retail space—and the resulting rental income—when budget area into one of the country’s hottest specialty- salary scales and what people in their selected fields actually do. Businesses upgrading an older office property. store corridors, and W&H saw an opportunity. The trick often arrange special projects for the students, such as preparing marketing “That’s going to happen more and more,” says Gary was to slice off a retail piece while retaining a lobby that materials for a product or designing the concept for a new restaurant, Alterman, senior vice president at Robert K. Futterman. would keep office tenants happy. engaging in moot courts and the like. “There are sections of Fifth Avenue where retail space The company fielded several offers and settled on Programs start throughout the year, and the timing is tailored to fit rents from $500 a square foot to upwards of $1,500 a Billabong last year. The site’s 30-foot ceilings and location business schedules. Participating organizations include Bloomberg LP, NYU square foot—it’s an expensive lobby to have.” on the same block as Macy’s made the chain willing to pay Medical Center and Crain’s New York Business. That was the conclusion that W&H Properties reached $650 a square foot, sources say. W&H spent about For more information, please call Exploring director Bob Hayes at when it was drawing up plans to upgrade 112 W. 34th. $4 million renovating the lobby. (212) 651-2808, or visit www.nyexploring.org.

FIRST CLASS SPACE WORLD CLASS VIEWS

Central Park views with six corner offices per floor THREE TOWER FLOORS OF For leasing information, please call: Christopher Gulden, Vice President I 212.356.4105 I [email protected] 17,320 SF EACH Ashley Mays, Leasing Associate I 212.216.1618 I [email protected] Larry Swiger, Senior Vice President I 212.216.1628 I [email protected]

Member

20 | Crain’s New York Business | February 18, 2008 Project5 1/2/08 12:25 PM Page 1

The market is calling.

And we’re listening– wherever the deals may be. Today’s real estate market is complex and challenging. Deals are being made and we’ve been helping clients successfully execute them – regionally, nationally and globally. As the largest consulting firm in the U.S., dedicated 24/7 to real estate and finance, The Schonbraun McCann Group knows how to maximize opportunities for our clients, every single time.

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REPORT Offshore investors Your plans are spectacular. Continued from Page 19 square foot, according to Cushman pared with 14 buildings valued at & Wakefield.Vacancy levels were at $3.9 billion in 2006. a tight 4.3% during the quarter. The trend shows no signs of slow- ing down in 2008. Foreign investors Quick turnaround But could your legal strategy have grabbed one-third of the $2.7 overseas investors also like the billion worth of commercial proper- city’s commercial real estate market use a new blueprint? ty currently under contract, accord- because properties can be sold ing to Frank Liantonio, executive quickly, a plus for a company that vice president of global capital mar- may have to raise cash on short no- kets at Cushman & Wakefield Inc. tice, says Borja Sierra, executive Of course, a recession in the city managing director of Savills Gran- could cool off the commercial real ite, a real estate investment banking estate market for everyone, includ- firm with international clients. ing foreign buyers, In contrast to by the second half of other major cities the year. Most ob- The credit like Moscow, where servers believe the a sale can take a year Cohen & Perfetto: A personalized approach to real estate law. subprime mort- crunch has or more, New York Itʼs a simple, but profound, premise: Each client represents an important relationship. gage-related prob- properties can be And every one of those relationships demands our complete attention and dedication. lems on Wall Street not hampered snapped up in as lit- At Cohen & Perfetto, this is the philosophy that drives us. We make the connections have not bottomed tle as a week, says that build these relationships, adding depth and value to every partnership we forge, out, and if a signifi- foreign buyers Mr. Sierra. “If you and every transaction that transpires. Whether your needs involve real estate, govern- cant number of want to sell a build- ment incentives, banking, zoning, or litigation, itʼs not just a deal to us: Itʼs your deal. workers in the fi- ing, every day there Learn more at www.cohenperfetto.com. nancial sector and are lots of contracts related professional happening,”he says. services are laid off, The liquidity of demand for office space—and rental New York real estate is one of the prices—could decline. reasons Renta has entered the mar- Foreign investors could become ket. The city has many properties, “uncomfortable with substantial says Mr. Rabassa, that can accom- leasing risks or vacancies in build- modate the firm’s strategic approach ings,”says Jim Montanari,executive to real estate—buy,fix up and flip “in managing director of The Staubach under a year.” 444 Madison Avenue, 5th Floor Co., a real estate advisory firm. While the credit crunch has re- C New York, NY 10022 For now, foreign investors seem duced deal-making for some players P COHEN & PERFETTO LLP Tel: 212-488-1300 Fax 212-813-0767 unfazed by such possibilities. They in the acquisitions market, it has not Attorneys at Law www.cohenperfetto.com are scooping up Manhattan proper- hampered foreign buyers, who usual- ties at record prices, say experts, be- ly put more equity into their deals cause the buildings are still cheaper than their domestic counterparts. than comparable properties in other Some are doing all-cash transactions. major international cities like Lon- Still,no one is discounting the po- don and Paris. tential impact of a recession.“Every- one is keeping an eye on the econo- KEEP OUR Strong euro my to see what way it tips,” says Nat the sagging dollar also gives them Rockett, a managing director at more buying power. “They’re buying Jones Lang LaSalle. “Right now, STREETS SAFE 30% more for their euro than they did we’re sitting on a pivotal point.” before,” says Craig Evans, senior But with the city home to scores of • An hour or two with our QuickBooks® advisors managing director and head of in- global companies that generate rev- could save you weeks of frustration. vestment sales at Colliers ABR Inc. enues overseas and bring their earn- The city’s falling crime rates, ings “home to their headquarters,” • We have helped over a thousand businesses perception of security, international the New York market could hold up from sole proprietorships to medium size aura and strong leasing market are better than others because of its diver- companies in every field. also winning over foreigners. sification,says Dan Fasulo,managing Average asking rents in Manhat- director of Real Capital Analytics. • We optimize the software to your business for tan’s class A office buildings—the “There would need to be a significant greater efficiency and profitability. market segment most popular change in the overall outlook for the • Our advisors are certified at the highest level. among foreign buyers—jumped a world to slow the market down.” whopping 27% in the fourth quarter • Companies benefit from our accounting of 2007 from a year ago—to $78 a COMMENTS? [email protected] background.

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REPORT REAL ESTATE Overseas condo buyers’ Mack-Cali Realty Corporation is pleased to announce profile starting to change the following transaction: National Union Fire Insurance Company Middle-class clients of Pittsburgh, PA (NUFIC), getting nervous; a subsidiary of AIG International Group, Inc., wealthy investors has expanded its space by 77,050 sf through 2012 at still in the market 101 Hudson Street, Jersey City NUFIC now leases a total of 394,849 sf BY CATHERINE CURAN at this 42-story waterfront office tower.

they live in edinburgh,Scotland, Special thanks to but Robin Garrett and his wife, Lewis Miller and Andrew Sussman of CBRE, Olivia Giles,have chosen to put their who represented NUFIC. money to work in Manhattan. They bought their first condominium, a one-bedroom apartment in Turtle Bay, in 49,300 sf remain available for lease. 2005. After suc- Please contact: cessfully renting FOREIGN Christopher DeLorenzo CURRENCY it out, they took the plunge again 201.986.1463 [email protected] late last year, buying a $975,000 condominium in Tom Savoca the same neighborhood. 201.261.0359 [email protected] The Scottish couple’s investments may partly explain why Man- hattan residential real estate prices continue to defy logic,rising by double-digits while home values in the rest of the country languish.Thanks to a U.S.dollar that grew increasing- LOUISE PHILLIPS FORBES of 101hudsonstreet.com ly weaker last year, savvy foreign Halstead Property has noticed buyers rushed to invest in U.S. real a shift from middle-income buyers to wealthier ones. estate, and the market they most

wanted to be in was Manhattan.Al- larry ford though firm statistics are hard to Murray Hill Properties LLC come by, most real estate agents es- fell only 2% and bonuses declined that client base has dried up. timate that up to 30% of all residen- 4%. Those numbers could be much Mr. Rosabianca is working with is pleased to announce that tial sales in Manhattan last year in- worse this year. If they are, New more wealthy clients from London Gerbig, Snell/Weisheimer Advertising, LLC volved foreign buyers. York City could slip into a recession and Italy. One, a Naples-based fur Their presence in the market and apartment prices in Manhattan trader, just purchased an apartment has leased additional space at helps explains why the average could drop. in London and paid $700,000 for a 1180 Avenue of the Americas, Manhattan apartment sold for $1.4 Real estate brokers are already Manhattan studio to diversify his million in the fourth quarter of starting to see skittishness on the portfolio. bringing their total commitment 2007, a 17% increase over the year part of some foreign buyers. Those to over 32,000 square feet. before. Even when you subtract who need rental income to offset the Digging in high-end apartments, which can cost of the purchase are less likely to scotland native Clare Bennett, skew price averages, average apart- buy,and in some cases are even ques- 31, purchased her first Manhattan ment prices were still up 6% in tioning whether to complete deals apartment, an Upper West Side Manhattan in the quarter, com- that have not closed.Today’s buyers two-bedroom, two-bath condo, at 1180 Avenue of the Americas pared with price declines in most are mostly wealthy investors and the end of 2006. U.S. housing markets. those with experience in global real The daughter of a United King- dom real estate executive, she used A specialized division Foreign buyers family money to cover the $1.2 mil- John Maher and John Pavone of CBRE as 2008 unfolds, foreign buyers lion purchase price. Now she and represented the tenant. continue to be attracted to Manhat- her boyfriend, an attorney who lives tan real estate and the steep discount accounted for and works in London, are waiting a weak dollar affords.One real estate for co-op board approval for a pur- firm,Fox Residential Group,kicked up to 30% of all chase they are making together in Murray Hill Properties was represented off 2008 with a new international the West Village. This apartment, by David Greene and Bruce Goodman. division—complete with a multilin- residential sales a one-bedroom, was priced at gual staff—to serve this clientele. $950,000. “If the dollar continues to be low, Ms. Bennett plans to rent the we will certainly see foreigners con- Upper West Side apartment and tinue to buy here,” says Tamir live in the West Village, since she Shemesh, managing director at estate deals. prefers that neighborhood.She says Prudential Douglas Elliman. “Eloquently middle-class,finan- friends ask the couple why they are However, they may find that the cially established Europeans [were] purchasing more real estate in market is changing. The primary taking hard-earned money and buy- Manhattan. They like the idea of factor behind Manhattan’s resilient ing ‘a piece of the rock’ on sale,” says earning rental income, and possibly residential real estate market has Louise Phillips Forbes, executive using one place as a pied-à-terre been the wealthy incomes of Wall vice president at Halstead Property. should she move back to the Unit- Street workers.While several finan- “Now we are seeing a shift.” ed Kingdom. cial firms were forced to write down Manhattan real estate attorney “You can’t go wrong in Manhat- billions of dollars of bad loans and Luigi Rosabianca had middle-class tan,”says Ms.Bennett,who works at investments because of the sub- clients from Ireland last year eager a nonprofit organization. prime debacle in the second half the to buy in the city their grandfather year, Wall Street incomes in 2007 immigrated to decades ago. Now COMMENTS? [email protected] CNYB 02-18-08 A 24 2/13/2008 5:35 PM Page 1

REPORT REAL ESTATE CoStar’s Top Manhattan Office Leasing Deals Biggest transactions in 2007, ranked by square feet

Address Square feet Tenant Tenant representative Landlord/sublandlord Landlord/sublandlord representative Submarket

1 450 Lexington Ave.1 650,088 Davis Polk & Wardwell CBRE Istithmar Lexington CBRE Grand Central

2 825 Eighth Ave.2 617,135 Cravath Swaine & Moore Studley Macklowe Properties CBRE Times Square

3 1 Liberty Plaza 2 533,555 Cleary Gottlieb Steen & Hamilton Newmark Knight Frank Brookfield Properties Corp. Brookfield Properties Corp. World Trade Center

4 1271 Sixth Ave.3, 4 407,374 Lehman Brothers CBRE Time Inc. Studley Columbus Circle

5 345 Hudson St. 394,314 Viacom International Inc. CBRE Trinity Church Real Estate Trinity Church Real Estate Hudson Square

6 200 Fifth Ave. 369,973 Grey Global Group CBRE L&L Acquisitions CBRE Chelsea

7 250 W. 55th St. 221,510 Gibson Dunn & Crutcher CBRE Boston Properties Inc. CBRE Columbus Circle

8 620 Eighth Ave.5 216,927 Goodwin Procter Studley The New York Times Co./Forest City Ratner Cos. CBRE Times Square

9 1251 Sixth Ave.1 208,451 The Bank of Tokyo-Mitsubishi Ltd. Cushman & Wakefield Inc. Mitsui Fudosan America Inc. Newmark Knight Frank Times Square

10 2 Park Ave.2 182,826 Herrick Feinstein Newmark Knight Frank Morgan Stanley Real Estate CBRE Murray Hill

11 195 Broadway 181,068 Omnicom Group Inc. Direct deal L&L Acquisitions CBRE World Trade Center

12 1345 Sixth Ave.1 179,440 Allianz Global Investors of America CBRE Fisher Brothers Fisher Brothers Columbus Circle

13 498 Seventh Ave.2 167,334 Liquidnet Inc. CBRE George Comfort & Sons/Loeb Partners/SITQ George Comfort & Sons Inc. Penn Plaza/Garment

14 277 Park Ave.3 166,667 AIG CBRE Stahl Real Estate Co. CBRE Plaza District

15 630 Fifth Ave.1 159,586 Bessemer Group Inc. Cushman & Wakefield Inc. Tishman Speyer Tishman Speyer Plaza District

16 1345 Sixth Ave.6 151,476 AllianceBernstein CBRE Fisher Brothers Fisher Brothers Columbus Circle

17 450 Lexington Ave. 140,974 Warburg Pincus Cushman & Wakefield Inc. Istithmar Lexington CBRE Grand Central

18 1 New York Plaza 3 133,368 AIG CBRE Brookfield Properties Corp. Cushman & Wakefield Inc. Financial District

19 250 Hudson St. 127,530 Daniel J. Edelman Inc. CBRE Jack Resnick & Sons Inc. Jack Resnick & Sons Inc. Hudson Square

20 75 Park Place 1 121,272 R.R. Donnelley & Sons Co. CBRE Jack Resnick & Sons Inc. Jack Resnick & Sons Inc. World Trade Center

21 1211 Sixth Ave. 118,725 News Corp. L&L Acquisitions Beacon Capital Partners Inc. Cushman & Wakefield Inc. Plaza District

22 7 Hanover Square 3 117,091 Fragomen Del Rey Bernsen & Loewy Cushman & Wakefield Inc. Milstein Properties/Swig Equities The Staubach Co. Financial District

23 245 Park Ave.1 109,657 Rabobank International Cushman & Wakefield Inc. Brookfield Properties Corp. Brookfield Properties Corp. Grand Central

24 601 W. 26th St. 108,726 Lord & Taylor CBRE The Shorenstein Co./601 West Associates Cushman & Wakefield Inc. Chelsea

25 1095 Sixth Ave. 107,022 iStar Financial Studley The Blackstone Group CBRE Penn Plaza/Garment

26 237 Park Ave. 107,000 Bear Stearns & Co. L&L Acquisitions Broadway Partners Monday Properties Grand Central

27 1440 Broadway 2 105,397 Macy’s CBRE 1440 Broadway Owner Monday Properties Penn Plaza/Garment

28 1633 Broadway 102,000 Dickstein Shapiro CBRE Paramount Group Inc. Paramount Group Inc. Columbus Circle

29 1095 Sixth Ave. 100,794 Centerline Capital Group Inc. The Staubach Co. Verizon Communications/The Blackstone Group CBRE Penn Plaza/Garment

30 560 Lexington Ave.1 100,546 Bayern LB CBRE Rudin Management Co. Rudin Management Co. Plaza District

31 100 Park Ave.1 100,454 J. & W. Seligman & Co. Cushman & Wakefield Inc. SL Green Realty Corp./Prudential Real Estate SL Green Realty Corp. Grand Central

32 350 Park Ave.6 100,368 Ziff Brothers Investments CBRE Vornado Realty Trust Vornado Realty Trust Plaza District

33 1372 Broadway 7 100,072 Ann Taylor Stores Corp. Studley SL Green Realty Corp. SL Green Realty Corp. Penn Plaza/Garment

34 340 Madison Ave. 99,485 National Financial Partners Corp. Cushman & Wakefield Inc. Broadway Partners Cushman & Wakefield Inc. Grand Central

35 55 Water St. 97,276 Legg Mason CBRE New Water Street Corp. CBRE Financial District

36 399 Park Ave.6 96,599 Lehman Brothers Holdings Inc. CBRE Boston Properties Inc. CBRE Plaza District

37 919 Third Ave.6 96,000 Schulte Roth & Zabel CBRE SL Green Realty Corp. Cushman & Wakefield Inc. Plaza District

38 330 W. 34th St.1 88,709 Props for Today Grubb & Ellis Vornado Realty Trust Vornado Realty Trust Penn Plaza/Garment

39 55 Water St. 88,248 GFI CBRE New Water Street Corp. CBRE Financial District

40 150 E. 42nd St. 87,396 Marubeni America Corp. Cushman & Wakefield Inc. Hiro Real Estate Co. CBRE Grand Central

41 135 W. 50th St.6 86,927 AllianceBernstein CBRE UBS Realty Investors Murray Hill Properties/TCN Columbus Circle

42 11 W. 42nd St.3 86,476 TV Guide Studley Tishman Speyer Cushman & Wakefield Inc. Times Square

43 498 Seventh Ave. 86,438 Group M Worldwide Cushman & Wakefield Inc. George Comfort & Sons/Loeb Partners/SITQ George Comfort & Sons Inc. Penn Plaza/Garment

44 1 Liberty Plaza 1 85,718 Royal Bank of Canada Direct deal Brookfield Properties Corp. Brookfield Properties Corp. World Trade Center

45 599 Lexington Ave. 82,147 Ramius Capital Group CBRE Boston Properties Inc. CBRE Plaza District

46 885 Second Ave.1 80,640 TeleRep Inc. CBRE Lawrence Ruben Co. Lawrence Ruben Co. Plaza District

47 1 State St.1 79,296 SourceMedia Inc. Cushman & Wakefield Inc. Wolfson Group Wolfson Group Financial District

48 7 World Trade Center 6 78,710 Moody’s Corp. Cushman & Wakefield Inc. Silverstein Properties Inc. CBRE World Trade Center

49 119 W. 40th St.6 77,945 Hampshire Designers Inc. CBRE George Comfort & Sons/Loeb Partners/SITQ George Comfort & Sons Inc. Penn Plaza/Garment

50 1180 Sixth Ave. 76,801 Scripps Networks Cushman & Wakefield Inc. Murray Hill Properties Murray Hill Properties Times Square This list includes leases with terms of more than two years. Deals are for new leases unless otherwise noted. 1-Renewal. 2-Renewal and expansion. 3-Sublease. 4-Studley was the sublandlord representative. 5-Deal includes a 154,585-square-foot direct lease from Forest City Ratner Cos., for which Studley was the tenant representative, and a 62,342-square-foot direct lease from The New York Times Co. 6-Expansion. 7-Renewal and restructuring. CoStar Group Inc., a provider of information services to the U.S. and U.K. commercial real estate industries, offers customers access via the Internet to the most comprehensive verified database of commercial real estate information in the United States and the United Kingdom. For more information, visit www.costar.com or call (877) 7COSTAR.

24 | Crain’s New York Business | February 18, 2008 Project1 2/13/08 10:56 AM Page 1

To our clients, for making 2007 our best year ever

In 2007, Cushman & Wakefield's New York City brokerage professionals completed more than 1,200 leasing and sales transactions valued at more than $15 billion, including the largest property sales in Midtown and Downtown.

We thank our clients for their continued trust. We’re There.

Global intelligence. Innovative advice. Flawless execution. www.cushmanwakefield.com CNYB 02-18-08 A 26 2/13/2008 5:33 PM Page 1

REPORT REAL ESTATE CoStar’s Top New York City Property Sales Biggest commercial property sales in 2007, ranked by price

Address/ Square feet/ property type/ Sale price net price per Sale Buyer’s Seller’s submarket (in millions) square foot date Buyer representative Seller representative TOP FOUR SALES 666 Fifth Ave. $1,800.0 1,454,110 1/11 Kushner Cos. Cushman & Wakefield Inc. Tishman Speyer Cushman & Wakefield Inc. 1 Office $1,237.87 Plaza District 388-390 Greenwich St. $1,575.0 2,634,670 12/18 SL Green Realty Corp./ Cushman & Wakefield Inc. Citigroup Inc. Cushman & Wakefield Inc. 2 Office $597.80 SITQ TriBeCa 280 Park Ave. $1,275.0 1,179,456 11/19 Broadway Partners/ n/a Istithmar Building 280 Park n/a 3 Office $1,081.01 Investcorp International Plaza District 60 Wall St. $1,180.0 1,635,841 5/4 Paramount Group Inc. n/a Deutsche Bank Group CBRE/Deutsche Bank 4 Office $721.34 Financial District 230 Park Ave. $1,150.0 1,401,301 12/24 Monday Properties/ n/a Istithmar PJSC Island Capital Group 5 Office $820.67 Goldman Sachs LIST RANK 1 Grand Central Group Inc. ADDRESS 1177 Sixth Ave. $1,003.0 921,637 12/20 Silverstein Properties Inc./ n/a Paramount Group Inc. Eastdil Secured/ 666 Fifth Ave. 6 Office $1,088.28 California State Teachers’ Goldman Sachs Times Square Retirement System Group Inc. NET PRICE PER SQ. FT. 32 Old Slip $751.0 1,132,340 8/29 Beacon Capital n/a Paramount Group Inc. CBRE $1,237.87 7 Office $663.23 Partners Inc. Financial District 100 W. 33rd St. $689.0 1,000,000 1/11 Vornado Realty Trust n/a ManMall n/a 8 Office $689.00 Penn Plaza/Garment 885 Third Ave. $648.5 586,589 7/9 Tao Tsuot Ltd./ n/a Tishman Speyer CBRE 9 Office $1,105.54 Metropolitan Real Plaza District Estate Investors 1 Park Ave. $550.0 924,501 3/1 Murray Hill Properties n/a SL Green Realty Corp./ CBRE 10 Office $594.92 SEB Immobilien- Murray Hill Investment GMBH 229 W. 43rd St. $525.0 775,678 5/1 Africa Israel, USA n/a Tishman Speyer CBRE 11 Office $676.83 Times Square LIST RANK 2 450 Park Ave. $509.0 321,000 7/2 Somerset Partners n/a 450 Park LLC/New York State Eastdil Secured 12 Office $1,585.67 Common Retirement Fund/ ADDRESS 388-390 Plaza District Taconic Investment Partners Greenwich St. 2 Herald Square $500.0 354,298 4/11 Sitt Asset Management/ Cushman & Wakefield Inc. RFR Realty Cushman & Wakefield Inc. NET PRICE PER SQ. FT. 13 Office $1,411.24 SL Green Realty Corp. $597.80 Penn Plaza/Garment 85 10th Ave. $430.0 597,953 3/1 The Related Companies n/a Somerset Partners Eastdil Secured 14 Office $719.12 Chelsea 2201-2219 Broadway $426.0 455,328 3/8 Africa Israel, USA/ n/a 390 West End Associates Eastdil Secured 15 Multifamily $935.65 Mann Realty Associates Upper West Side 225 W. 34th St. $350.0 558,766 8/23 14 So. Williamsport Dakota Realty Group Pennsylvania Building Co. Cushman & Wakefield Inc. 16 Office $626.38 Holdings Penn Plaza/Garment 14 Wall St. $325.0 956,624 4/13 Capstone Equities Cushman & Wakefield Inc. Boymelgreen Developers n/a 17 Office $339.74 Financial District 222 E. 41st St. $319.8 372,963 8/17 Wells Real Estate Wells Real Estate Zeta-Ceres n/a 18 Office $857.46 Investment Trust II Inc. Investment Trust II Inc. LIST RANK 3 Grand Central ADDRESS 444 Madison Ave. $313.5 475,000 11/29 Westbrook Partners n/a P & E Properties Inc. Studley 280 Park Ave. East 19 Office $660.00 Plaza District NET PRICE PER SQ. FT. $1,081.01 1180 Sixth Ave. $300.1 396,800 5/30 Murray Hill Properties n/a Prudential Realty Investors CBRE 20 Office $756.30 Times Square 315 Park Ave. South $265.0 333,641 6/6 315 Park Ave. South LLC Venture Capital Properties TM Park Avenue Associates Continental Realty 21 Office $794.27 Gramercy Park 417 Fifth Ave. $250.0 392,190 7/12 The Moinian Group Cushman & Wakefield Inc. Murray Hill Properties Cushman & Wakefield Inc. 22 Office $637.45 Murray Hill 230 Park Ave. South $231.0 386,000 8/1 Rockrose Development Cushman & Wakefield Inc. Park 230 SPE Cushman & Wakefield Inc. 23 Office $598.45 Corp. Gramercy Park 26 Broadway $225.0 630,000 3/23 The Chetrit Group n/a Koeppel Cos. CBRE 24 Office $357.14 Financial District LIST RANK 4 530 Park Ave. $211.0 203,450 7/20 BlackRock Realty Advisors Cushman & Wakefield Inc. Katz Park Avenue Corp. Cushman & Wakefield Inc. ADDRESS 25 Multifamily $1,037.24 Plaza District 60 Wall St.

Transactions in all five New York City boroughs are eligible for this list; no deals outside Manhattan made the top 25. Portfolio sales and partial-interest sales are not included. Some sales price figures have been rounded. n/a Not available. NET PRICE PER SQ. FT. CoStar Group Inc., a provider of information services to the U.S. and U.K. commercial real estate industries, offers customers access via the Internet to the most comprehensive verified database of commercial real estate information in the United $721.34 States and the United Kingdom. For more information, visit www.costar.com or call (877) 7COSTAR.

26 | Crain’s New York Business | February 18, 2008 Project4 2/13/08 11:35 AM Page 1

We’re Building a Greener New York

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REPORT REAL ESTATE Young architecture firms land work in the boroughs

designing a 37-story residential Kaufman,whose eponymous Man- Creativity more tower on Myrtle Avenue, north of hattan-based firm clad one important than the Atlantic Yards complex in Williamsburg condo, The Luxe, in Brooklyn, for developer Red Apple French-blue metal panels. He is reputation to Group. also designing three residential some developers “I think our attention to urban towers comprising 500,000 square design matters a lot to our clients,” feet at Schaefer Landing in says William Stein, a principal at Williamsburg, the sight of the for- BY LISA GOFF Dattner. Developers of projects mer Schaefer Brewery. along remaining stretches of water- A flair for designing in an indus- in less than two years and with- front, or in “upland” sites a few trial context has fueled the growth out so much as a Web site, Studio V blocks inland from megaprojects of Loadingdock5, a six-member has reeled in a series of high-profile like Atlantic Yards and Queens studio based in Brooklyn. architecture jobs in Queens and West, want to avoid the ugly battles “We started working out of a Smart businesspeople rent plants, Brooklyn. that those developments produced. loading dock on the Williamsburg The firm is designing two large “You don’t have to build a row of waterfront, and to this day we try to copiers and a lot more. residential properties overlooking towers for rich people facing the wa- maintain a certain industrial feeling the East River in Long Island City, ter, and a blank wall of parking in our designs,” says founding part- Queens; a mixed-use development ner Sam Bargetz. Really smart businesspeople rent on the former RKO Keith’s Theater site in Flushing, Queens; and mas- ‘You don’t have Expanding portfolio their furniture too. ter plans for two major projects on loadingdock5 formerly focused the Brooklyn waterfront. to build a row on large warehouse conversions but “Our underground status is a recently added new construction. large part of our success,” says of towers for It’s now designing a pair of eight- Don’t tie your dollars up by purchasing ofﬁ ce furniture. founder Jay Valgora. “Unlike the story apartment buildings on St. Renting from CORT is smart business. Buying leaves ‘starchitects’ working in the bor- rich people Marks Avenue in Brooklyn. Like you stuck with furniture that decreases in value and is oughs, we’re not burdened with a Studio V, the firm has gained from hard to resell. Just call CORT, and we’ll deliver and particular style. Every project we facing the water’ word of mouth. install within 48 hours. design is unique,not a signature that “We don’t do much marketing, we stamp out across the city.” apart from putting signs up on some Studio V is one of several local construction sites,” Mr. Bargetz firms racking up business with one- says. Long Island 631.420.5802 of-a-kind designs in the boroughs. Clients are attracted to the firm’s They cater to developers who want garages facing the neighborhood,” “revolving system,” in which differ- Manhattan work that is as bold and contempo- Mr. Valgora says. ent partners work on phases of the 212.867.2800 rary, but less predictable, than that For example, Studio V’s design same project. “This allows the Connecticut of well-known architects. for the River East project in Long members to use their individual 203.353.0400 Though these firms still struggle Island City combines a pair of 28- strengths throughout,” he says. Central New Jersey to be noticed amid the onslaught story glass towers on the waterfront Joe Chan, president of the CORT.com 732.729.4744 of twisted titanium Gehrys and with a set of four eight-story build- Downtown Brooklyn Partnership, Northern New Jersey gleaming white Meiers, they are ings clad in stone and copper. The says: “This is a unique period in 201.459.1401 benefiting from a mini-backlash structures’ aesthetic relates to the terms of attention to design,not just against household names. adjacent neighborhood’s two-story from starchitects but from local town houses, integrating rather firms. The boroughs are a place A rebalancing than isolating the development. where young architects can really “in the rebuilding after Sept. 11, “In Williamsburg, especially, experiment.” it was almost like our local architects developers don’t want designer- weren’t good enough,’’says develop- label” work, says architect Gene COMMENTS? [email protected] er Jonathan Rose. “Out-of-town architects have provid- BEAUTIFUL BOROUGH: ed a healthy infusion Studio V has several projects of new energy,” he under way in Queens, says. “But now you’re including this mixed-use seeing a rebalancing development on 47th Avenue. as developers increasingly look to local firms that not only have great design tal- ent but understand the practical aspects of building in New York.” Mr. Rose hired Dattner Architects, a Manhattan firm that does 90% of its business in the boroughs outside of Manhat- tan, to design an affordable housing development in the Bronx. Called Via Verde, it recently won an international competition.

The firm is also studio v architecture courtesy of

28 | Crain’s New York Business | February 18, 2008 CNYB 02-18-08 A 29 2/14/2008 11:03 AM Page 1

WWW.CRAINSNEWYORK.COM REAL ESTATE AND MORE ON THE WEB

Events View a current listing of local meetings, seminars and other networking events of interest to real estate professionals in the We’ve Added metropolitan area. More Experts. Back issues Use the archives to find Crain’s stories in any previous edition of the paper. Subscribe Use the “Subscribe now” The real estate professionals of H.J. Behrman & Co. Tuesday e-mail Sign up today for button to – including partners Howard Krams, Louis Levy, and Neal Klinger – Crain’s Real Estate Insider, a order the have joined forces with Anchin, Block & Anchin LLP as of January 1, 2008. weekly e-mail newsletter featuring weekly print the latest deals, events and per- edition of sonnel moves in one of the hottest Crain’s The addition of the Behrman team of real estate savvy industries. To register, go to New York professionals will enhance Anchin’s position as the leading ﬁrm www.crainsnewyork.com/ Business as signup. well as providing accounting, tax and advisory services to the real estate industry. digital Breaking news E-mail alerts keep subscrip- you up-to-date on local tions to the To learn more about how Anchin can beneﬁt you, developments in the commercial newspaper; The Crain’s Insider, a please contact a member of our Real Estate Services Team. and residential real estate business daily political newsletter; and Crain’s We’ll connect you with Your Expert Partner. as they happen. Health Pulse, a daily health care Company alerts Visitors to the newsletter. Crain’s Web site can sign up for e-mail alerts that provide news about a particular real estate Anchin, Block & Anchin LLP Accountants & Advisors brokerage or firm. 1375 Broadway, New York, NY 10018 212 840-3456 Resources Get easy links to Long Island Westchester www.anchin.com government agencies and industry groups involved in New York real estate.

in a 395,000 SF lease

at 345 Hudson Street

to Viacom

in the $105MM sale of in its acquisition of

960 Avenue of the 11 Doral Bank Americas Branches

February 18, 2008 | Crain’s New York Business | 29 CNYB 02-18-08 A 30 2/14/2008 11:05 AM Page 1

REPORT REAL ESTATE Murray Hill Properties LLC is pleased to announce that Omnipoint Communications, Inc. (T Mobile) Deals has leased 3,055 square feet of retail space at 1180 Avenue of the Americas. HR consultant inks deal 1180 Avenue of the Americas for big Citigroup space subleasing the space from Broad- Segal Co. to move ridge Financial Solutions. Broad- from Park Avenue ridge will continue occupying Ezra Saﬀ of Retail Zone represented the tenant. about 25% of the 11th floor of the to West 34th Street; building, which is located at the will occupy 4 floors corner of Broadway and Beaver Murray Hill Properties was represented Street. by David Greene and Bruce Goodman. he segal co.has signed The asking rent at the new loca- a 15-year lease for tion was $30 a square foot, and the 156,000 square feet at lease extends for four-and-a-half 333 W. 34th St., between years. Eighth and Ninth av- Ken Gurian, SpeechCycle’s di- Tenues, about half the total space in rector of finance, says the company the building (first reported on was drawn to the deal because of CrainsNewYork.com, Feb. 11). the lease’s short duration and the The asking rent was $58 a square minimal amount of renovation re- foot. quired. The lease is a coup for landlord Robert Koslow, a broker at Gen- SL Green Realty Corp. because the 333 W. 34TH ST. will be The Segal Co.’s new esis Realty Group, represented building is scheduled to be vacated home when Citigroup leaves the building. SpeechCycle, and Steve Chasanoff, in about 18 months. a broker at GVA Williams, acted on Citigroup occupies the entire behalf of Broadridge. 350,000-square-foot building now president and director of leasing for —theresa agovino but is slated to move in mid-2009 as SL Green.The company is current- part of a deal the bank made when it ly located at 1 Park Ave.It will move sold the property to SL Green last in January 2010. Cookie shop year.SL Green paid $183 million,or Leases this big are rare. In the opens in Village about $530 a square foot, for the current climate, tenants are wary of building. signing deals because they expect insomnia cookies, a late-night Segal, a human resources and rents to fall. But a Segal spokes- milk-and-cookie delivery service, is benefits consulting firm, will occu- woman says the deal offered opening a retail outlet at 50 W. Eighth py floors two through five, accord- favorable rent at a building being St., between MacDougal Street and ing to Steven Durels, executive vice renovated, a location near trans- Sixth Avenue. portation, and the opportunity for The Manhattan-based compa- Segal to reunite with its former ny,which will continue to operate its landlord. delivery service separately, signed a Paul Glickman and Alex Chud- 10-year lease for 300 square feet. noff, brokers at Cushman & Wake- The asking rent was $120 a square field Inc., represented SL Green. foot. CB Richard Ellis Inc. brokers The new store will sell cookies Michael R. Laginestra and Michael made on premises. Since launching Geoghegan represented Segal. its niche business in 2003 at the —theresa agovino University of Pennsylvania, Insom- nia Cookies has become popular with students on a dozen campuses Software company across the country. In the city, the subleasing office company mainly caters to New York University students. Its delivery speechcycle inc. will move to a zone includes addresses between 28,000-square-foot office on the Avenue A and the West Side High- 11th floor of 26 Broadway in the next way and between 14th and Broome couple of weeks. streets. The speech-recognition soft- If the new store performs well, ware company, currently in a tem- the company will probably open porary office at 90 John St., is more retail locations in the city. “We’ve been waiting for the right space,” says Elise Piatkowski, In- somnia’s director of marketing. Broker Gabe Whitman of Buch- binder & Warren represented both the tenant and the landlord, Buch- binder. —elisabeth butler cordova Financial firm expands in midtown allianz global investors has signed a three-year lease for the 36th floor—about 24,000 square feet—at 51 W. 52nd St., between Fifth and Sixth avenues. The asset management firm is subleasing the floor from BNP 26 BROADWAY will have a new tenant, Paribas, which acquired the space SpeechCycle, in the next couple of weeks. when it purchased an Italian bank

30 | Crain’s New York Business | February 18, 2008 CNYB 02-18-08 A 31 2/14/2008 11:54 AM Page 1

REPORT REAL ESTATE

The firm, previously located in the Seagram Building at 375 Park FREE TRIALS OF ONLINE NEWSLETTERS Ave., signed a 10-year lease. The CRAIN’S OFFERS READERS FREE two-week trial utives, lobbyists and asking rent was $48 a square foot. subscriptions to its online newsletters, Crain’s Health Pulse others interested in the Tenant broker Jeffrey Buslik of and The Crain’s Insider. inner workings of city and Adams & Co. says firms are mov- Pulse deals with the business of health care. It gives state government. ing to the Flatiron district to find a creative environment for their em- details on mergers, contracts, executive appointments, The one-page ployees. regulatory actions and legislative developments in metro newsletter is available by 6 a.m., Tuesday through The property at 72 Madison was New York City. Friday. An annual subscription is $269. originally built in 1911 and has re- An annual subscription is $319. The one-page For your free trial, go to www.crainsnewyork.com, and cently been renovated, getting on- newsletter is available by 6 a.m., Monday through Friday. click on the Health Pulse or Insider headline under site security and a new lobby. Subscribers receive Pulse Extra, an additional page, on “Newsletters” on the right side of the page. Under “Health Andy Udis and Mike Dreizen of Wednesday mornings. Pulse Tools” or “Insider Tools,” click on “Request a Free Newmark Knight Frank represent- The Crain’s Insider covers political gossip and Trial.” After registering, you will receive an e-mail with ed the landlord. government and political issues of importance to exec- instructions on accessing the trial issues. —andrew buck

51 W. 52ND ST. has space laid out for a financial firm. Allianz is moving in. A RARE BRANDING OPPORTUNITY last year. The rent is about $100 a This is a major branding opportunity for a square foot, according to sources. corporation or retailer seeking maximum The building is conveniently lo- visibility on lower Fifth Avenue. cated down the street from Allianz’s other office at 1345 Sixth Ave., ENTIRE BUILDING OF 110,250 SF AVAILABLE which it will continue to occupy. FLEXIBLE FULL FLOORS OF 15,750 SF The space was attractive because RETAIL SPACE AVAILABLE: FROM 5,000 TO 31,000 SF it was already laid out for a financial firm, says Bill Iacovelli, a broker at 160 Fifth Avenue has undergone a complete CB Richard Ellis Inc. Mr. Iacovelli transformation to include: says the firm expects to move in New entrance and lobby soon. CB Richard Ellis broker New HVAC and electrical Michael Monahan and Mr.Iacovel- New elevators li represented Allianz. New telecommunication systems Jordan Berger and Bill Peters, New state-of-the-art security system brokers at the New York office of New energy efficient windows The Staubach Co., negotiated for BNP. New bathrooms —theresa agovino House & Home

comes to Manhattan Oliver Katcher David Panzirer parkchester, n.y.-based home 212.883.0526 212.883.0526 [email protected] [email protected] and office supply retailer House & Home is preparing to open its first www.RFRrealty.com Manhattan store. House & Home signed a 15-year lease for 4,000 square feet on the ground floor of 345 W. 42nd St.,between Eighth and Ninth avenues. The store is part of a 24,000-square- foot block of space that currently houses a 7-Eleven store,Pre-School of America and Mid-City Gym. The asking rent was $145 per square foot. House & Home is the last retail tenant to move into building. “We were glad to finish that strip, and it was a good deal for them because the area has a diverse group of customers,”said Henry Goldfarb,executive managing director at Grubb & Ellis. Mr. Goldfarb and Stanley Lin- denfeld, a broker at Grubb & Ellis, represented both parties in the deal. —andrew buck Investment firm trading spaces street brains, an investment research firm, has fled midtown for

the Flatiron district, moving into a Member All information supplied is from sources deemed reliable and is furnished subject to errors, omissions, modifications, removal of the listing for lease, and including the rates and manner 5,000-square-foot loft on the third of payment of commissions for particular offerings imposed by principals or agreed to by this the terms of which are available to principals or duly licensed brokers, any square footage dimensions set forth are approximate. floor at 72 Madison Ave., between East 28th and East 29th streets.

February 18, 2008 | Crain’s New York Business | 31 Project8 2/14/08 5:18 PM Page 1 CNYB 02-18-08 A 33 2/14/2008 5:54 PM Page 1

NEIGHBORHOOD JOURNAL High hopes for tall Brooklyn project

downscale stores heavy on shoe sell- lantic Avenue train station is among One of the largest specialty meat City Point will bring ers failed to even dent the estimated the top performers in the chain. distributors in the warehouse, Mas- new shops downtown; $1.4 billion lost each year by Brook- The development team, which ter Purveyors, sustained the most lyn to Manhattan and other shop- includes Acadia Realty Trust, P/A damage in the fire. Its administra- offices, apartments ping venues. Associates and Rose Associates, tive headquarters was a total loss. are part of tower “City Point will bring in a new set bought the site from Thor Equities Even worse, all meat stored in the of shops that will further diversify last May for $110 million.The total refrigerated warehouse on the first t ranks as one of the most downtown Brooklyn’s retail envi- tab for City Point is anticipated to floor had to be held for government ambitious developments ever ronment,” says Joseph Chan, presi- surpass $800 million. Construction inspectors. Faced with nearly $1 planned in Brooklyn, and dent of the Downtown Brooklyn will take just over two years. million in undeliverable inventory, surely as the tallest—a retail, Partnership. He calls it one of the Few tears are being shed over the the company turned to its neighbors office and residential tower of most important projects ever in the demise of Albee Square.“The exist- in the 43-member co-op for help CITY POINT will rise on site of Albee Sq. Mall. Iup to 70 stories looming over down- city’s third-largest business district. ing mall had been fairly insular,”says with filling orders. The response town. He also predicts that the new office Mr. Chan.“It was fortress-like in its was quick and overwhelming. No, it’s not “Miss Brooklyn,” the space will lease quickly, since the appearance and the way it interact- “They’re all pitching in to help “Everything on the [warehouse] flagship of the nearby Atlantic Yards downtown market has been strong ed with the local streetscape. What Master Purveyors,” says Josephine floor is fine; it’s just the offices up- complex. It’s City Point. of late. you can expect to see [with City Infante, executive director of the stairs that are a disaster,” says Matt The developers plan to break What concerns some observers is Point] is a more visible, transparent Hunts Point Economic Develop- Kudish, a manager at Master Pur- ground for the project by year’s end the timing of such a vast develop- and interactive building that capi- ment Corp. “The businesses here veyors. His refrigerated meat cases at the site of the 2½-story Albee ment. Nearly 200 of the project’s talizes on the growth that’s happen- are very resilient, and they’ll stock were untouched, but all the meat Square Mall, at Fulton and Gold apartments, for example, are slated ing in downtown Brooklyn.” their trucks with other companies’ had to pass inspection by the U.S. streets.The mall’s successor will in- to be “affordable.” But the federal —erik engquist meats if they have to.” Department of Agriculture. Mr. clude half a million square feet of re- funding for such projects has been No one was injured in the fire, Kudish started shipping poultry tail space, up to 300,000 square feet rapidly drying up. In the midst of which started Monday after 5 p.m., Thursday, but other meat was held. of offices and as much as 800,000 the credit crisis, lining up private fi- Sellers keep cool when the warehouse was fairly qui- Several businesses in the same square feet of apartments. nancing for the rest of the project after Bronx fire et. More than 100 firefighters were complex were greeted with smoky “The site had been enormously could also prove difficult. called to the blaze. DeSola Provi- offices Tuesday. under built,” says Paul Travis of The developers report, however, the hunts point Cooperative sions, a smaller meat distributor “Thank God the winds were Washington Square Partners,one of that negotiations with potential ten- Market in the Bronx lived up to its next door, also lost its offices to the blowing in the other direction,” says the principals on the development ants have been fruitful and that an name last week when a two-alarm inferno.Co-op officials estimate the Bruce Rosen, president of lamb and team. anchor has been secured.Insiders be- fire ripped through the building’s cost of the damage to the buildings veal seller B.Rosen and Sons,whose Certainly, the old 200,000- lieve that role will be played by Tar- roof and second floor,destroying the and office equipment in the millions business sits across the lot. square-foot mall with its mix of get,whose nearby store above the At- offices of two meat sellers. of dollars. —hilary potkewitz

President Metropolitan Television Alliance, LLC New York, NY

A unique opportunity to play a major role in the future of television in the nation’s number one market. When the terror attacks of September 11, 2001 destroyed the World Trade Center and with it most of New York’s broadcast infrastructure, the city’s television stations came together to form a coalition – the MTVA – to rebuild and to plan for the area’s digital future. Much has been accomplished, but much remains to be done, and the coalition is currently seeking an outstanding individual for the position of President to lead the group forward. The President, working with the general and engineering management of the member stations, oversees the planning, development and ongoing operation of the stations’ shared digital broadcast facilities, directly manages the activities of the Alliance’s Chief Technical Officer and interacts with governmental agencies at the city, state and federal levels. This is a high-profile position that demands a seasoned industry veteran with extensive knowledge of current and emerging technologies, strong consensus-building talents and excellent communication skills. The successful candidate will be capable of forcefully representing the MTVA at all levels of business and government. The position requires a self-starter who will manage his or her own work schedule, however candidates must be available to commit at least two days per week to MTVA activities. Inquiries and resumes should be e-mailed to: [email protected] or mailed to: MTVA, LLC c/o Paul Bissonette 118 Horseshoe Hill Rd. Pound Ridge, NY 10576

February 18, 2008 | Crain’s New York Business | 33 Project3 2/14/08 4:04 PM Page 1

SOME OF NEW YORK’S MOST INSPIRING LEADING LADIES WON’T BE FOUND ON A BROADWAY STAGE.

WWW.TEACHNYC.NET

NYC DEPARTMENT OF EDUCATION CNYB 02-18-08 A 35 2/14/2008 6:01 PM Page 1

Another loser, American Me- dia’s Star magazine,was off 4%,with Celebrity magazines’ star is setting 712,980 in single-copy sales. Gossip sites take bite anticipated internet gossip sites like Newsstand sales and planned TMZ.com—as well as People.com— drop for several for,” said Ian have stolen some of the thunder Scott, Bauer’s from the crowded magazine catego- titles; one publisher ad sales presi- ry, contributing to the newsstand cuts rate bases dent, in a erosion. statement an- Experts say it’s too early to write nouncing the the celebrity category’s obituary. BY MATTHEW FLAMM rate base “It’s still a pretty formidable cat- TOO CROWDED? In Touch, Life & Style and People posted losses in second-half 2007; OK! and Us Weekly showed small gains. change. “This egory by itself,” says Bill Mickey, after wobbling in their orbits for brings our cir- managing editor of Circulation the last year, the once-soaring culation to its Management magazine.“But it’s not celebrity magazines have plummet- guaranteed to advertisers—of both Touch was brought down 17% to 1 natural level and allows us to cater to as gangbusters as it used to be.” ed to earth. of its titles. Life & Style’s rate base million. our core buyers, who are willing to Following a 50-cent cover price was cut 21% to 550,000 copies; In “Falloff in newsstand sales was pay more for the product.” COMMENTS? [email protected] hike in October to $3.99, People magazine saw single-copy sales slide an unprecedented 8.5%, to 1,428,760, in the six-month period ended Dec. 31, according to the latest report from the Audit Bureau of Circulations. Bauer Publications’ Life & Style—which raised its cover price by $1 to $2.99 in the fall—also suf- fered a dramatic drop-off: News- stand sales fell 9.7%, to 672,463, in the second half. Bauer’s newsstand leader, In Touch, which also raised its price by a dollar, was flat, selling 1,228,056 copies at the newsstand after years of steady growth. Countering trend only OK! and Us Weekly managed to counter the celebrity titles’ down- ward trend, with newsstand sales climbing 7% and 3%, respectively. Last week, in a sign of how bad things have gotten for the category, Bauer announced it was lowering the rate base—the number of copies

LEASE EXTENSION CRAIN TO STAY ON THIRD AVENUE CRAIN COMMUNICATIONS INC., parent of Crain’s New York Business, has extended its lease for about 100,000 square feet at 711 Third Ave. for five years. The asking rent for the second and third floors at the building, between East 44th and East 45th streets, was in the high $50s per square foot, but the company negotiated a lower rent, according to Bill Morrow, executive vice president of Crain. “We like the location, and staying saves us the expense and disruption of a move,” said Mr. Morrow. Crain’s 10-year lease was set to expire in February 2009, but it carried a five-year extension clause. The office houses other Crain publications, including Advertising Age, Investment News and Financial Week. The company was represented by Mary Ann Tighe and David Hollander, brokers at CB Richard Ellis Inc. The building’s owner, SL Green Realty Corp., was represented by company Senior Vice President Larry Swiger.

February 18, 2008 | Crain’s New York Business | 35 nb07p36_37cls.qxp 2/14/08 11:26 AM Page 36

ACCOUNTING REAL ESTATE PUBLIC & LEGAL NOTICES

AUCTION Notice of Formation of BRONSTEIN, VAN Notice of Qualification of CT Opportunity Notice of Qualification of eEmerge.NYC LLC, VEEN & SCHUCK, LLC, a domestic Limited Partners I, LP. Authority filed with NY Dept. of App. for Auth. filed Sec'y of State (SSNY) REAL ESTATE AUCTION Liability Company. Arts. of Org. filed with State on 11/27/07. Office location: NY County. 6/20/00. Office location: NY County. LLC org. the SSNY on 12/10/07. Office location: NY LP formed in Delaware (DE) on 9/28/07. NY in DE 5/15/00. SSNY designated as agent of 2-DAYS • “MULTI-MILLION DOLLAR” County. SSNY has been designated as agent Secy. of State designated as agent of LP upon LLC upon whom process against it may be DAY 1: FRI., FEB. 29, 7 P.M. upon whom process against the LLC may whom process against it may be served and served. SSNY shall mail copy of process REGISTRATION: 5:30 P.M. be served. SSNY shall mail a copy of process shall mail process to the principal business to c/o Nat. Reg. Agents, 875 Ave of the THE DESMOND HOTEL address: c/o Capital Trust, Inc., 410 Park Americas, NY, NY 10001, the Reg. Agt. upon ADVERTISING SERVICES ALBANY SHAKER RD, ALBANY, N.Y. to: The LLC, 152 West 57th St., NY, NY 10019. Purpose: Any Lawful Purpose. Ave., NY, NY 10022. DE address of LP: c/o whom proc. may be served. DE office addr.: DAY 2: SAT., MAR. 1, 10 A.M. Corporation Trust Co., 1209 Orange St., 160 Greentree Dr., Dover, DE 19904. Cert. of REGISTRATION: 8:30 A.M. Notice of Formation of Steve McCurry Studios, Wilmington, DE 19801. Name/address of Form. on file: SSDE, Townsend Bldg., Dover, HOLIDAY INN TURF DE 19901. Purpose: any lawful activities. WOLF ROAD, ALBANY, N.Y. LLC. Arts. of Org. filed with Secy. of State genl. ptr. available from NY Secy. of State. of NY (SSNY) on 12/17/07. Office location: Cert. of LP filed with DE Secy. of State, 401 178+ PROPERTIES NY Co. SSNY designated as agent of LLC Federal St., Dover, DE 19901. Purpose: any Notice of Qualification of MRA Opportunities THROUGHOUT NY, VT, OH, SC, FL & TX upon whom process against it may be served. lawful activity. Fund LP, App. for Auth. filed Sec'y of State “MANY SELL ABSOLUTE TO THE HIGHEST BIDDER” SSNY shall mail process to:Delaney Corporate (SSNY) 8/27/07. Office location: NY County. Prime Waterfront Homes & Land On Saranac Lake, Notice of Qualification of BR 1355 First Avenue Lake George, Great Sacandaga Lake, Woodland Lake, Services LTD, 41 State St., Ste 405, Albany, LP org. in DE 8/7/07. SSNY designated as Mariaville Lake, Hudson Riverfront Comm’l & Resid. NY 12207. Purpose: any lawful activities. 7 Tier I Member, LLC. Authority filed with NY agent of LP upon whom process against it Properties, Multi-Fam. Apt Bldgs, Comm’l & Ind’l Dept. of State on 10/16/07. Office location: NY may be served. SSNY shall mail copy of BUSINESS SERVICES Bldgs/ Whse, Lg. Parcels Land, Major Approved Subdivisions, Vacant Lots & Many Add’l Properties. Notice of Formation of Betsy F. Perry LLC. County. LLC formed in Delaware (DE) on process to Attn: J. Tomilson Hill, 345 Park www.collarcityauctions.com Arts. of Org. filed with Secy. of State of N.Y. 10/5/07. NY Secy. of State designated as agent Ave., NY, NY 10154. DE office addr.: c/o CSC, Call For Brochure (SSNY) on 12/18/07. Office location: NY of LLC upon whom process against it may be 2711 Centerville Rd., Wilmington, DE 19808. County. SSNY designated as agent of LLC served and shall mail process to: c/o Bluerock Name/addr. of each gen. ptr. avail. at SSNY. upon whom process against it may be served. Real Estate, LLC, 680 5th Ave., 16th Fl., NY, Cert. of LP on file: SSDE, Townsend Bldg., SSNY shall mail process to principal business NY 10019, principal business address of the Dover,DE19901. Purpose:any lawful activities. location: c/o Ms. Betsy F. Perry, 211 E. 70th LLC. DE address of LLC: c/o Corporation Email: [email protected] St.,NY,NY10065. Purpose: business strategic Service Co., 2711 Centerville Rd., Ste. 400, Notice of Qualification of Rothford Records, (518) 895-8150 x 101 planning and any other purposes permitted by Wilmington, DE 19808. Cert. of Form. filed LLC. Authority filed with Secy. of State of applicable law. with DE Secy. of State, P.O. Box 898, Dover, NY (SSNY) on 1/16/08. Office location: NY COMMERCIAL DE 19901. Purpose: any lawful activity. County. LLC formed in Delaware (DE) on EVENT/EDUCATION Notice of Qualification of Nico Holdings LLC. 1/8/08. SSNY designated as agent of LLC QUEENS FAR ROCKAWAY Authority filed with NY Dept. of State on Notice of Qualification of Lola’s House LLC. upon whom process against it may be served. The International Restaurant & 1/17/08. NYS fictitious name: NH New York Authority filed with NY Dept. of State on SSNY shall mail process to: c/o Marc Roth, LLC. Office location: NY County. Principal 11/6/07. Office location: NY County. Principal 400 E. 56th St., Apt. 190, NY, NY 10022. Foodservice Show of New York and business address: 311 S. Wacker Dr., Chicago, business address: 11 Waverly Place, NY, NY Address to be maintained in DE: 160 Greentree the APPCI have partnered together to IL 60606. LLC formed in Delaware (DE) on 10011. LLC formed in Delaware (DE) on Dr., Ste 101, Dover, DE 19904. Arts. of Org. provide a one day seminar that will 12/20/07. NY Secy. of State designated as 12/28/06. NY Secy. of State designated as filed with DE Secy. Of State, 401 Federal agent of LLC upon whom process against it agent of LLC upon whom process against it St., Ste 4., Dover, DE 19901. Purpose: any teach you how to take fastest & most may be served and shall mail process to: c/o may be served and shall mail process to: c/o lawful activities. effective path to become a professional EXISTING 6,000 SQUARE FOOT CT Corporation System, 111 8th Ave., NY, NY The Flatiron Grp LLC, 156 5th Ave., Ste. 1123, MEDICAL CENTER private chef. Certification is included, 10011, registered agent upon whom process NY, NY 10010. DE address of LLC: c/o Notice of Qualification of EALC LLC. Authority OWNER WILL BUILD TO SUIT may be served. DE address of LLC: 1209 Corporation Service Co., 2711 Centerville Rd., visit internationalrestaurantny.com filed with Secy. of State of N.Y. (SSNY) on Orange St., Wilmington, DE 19801. Arts. Ste. 400, Wilmington, DE 19808. Arts. of Org. 12/28/2007. Office location:NY County. Principal for more information. Or call Diana • Suitable for Charitable Organization of Org. filed with DE Secy. of State, 401 filed with DE Secy. of State, P.O. Box 898, or Any Medical Use business location: 150 E. 58th St., NY, NY Press at 1-800-363-3631. Federal St., Dover, DE 19901. Purpose: Dover, DE 19903. Purpose: own real estate. 10155. LLC formed in Delaware (DE) on • Perfect Location for any lawful activity. 7/16/1990. SSNY designated as agent of LLC TELECOMMUNICATIONS After-School Program Notice of Qualification of Gemini 442 West 36th upon whom process against it may be served. See Plans and Layout at Notice of Qualification of Highbridge Principal Street 31, LLC. Authority filed with Secy. of SSNY shall mail process to: c/o Corporation www.WavecrestMedical.com Strategies Mezzanine Partners Offshore GP, State of NY (SSNY) on 1/8/08. Office location: Service Company (CSC), 80 State St., Albany, L.P. Authority filed with NY Dept. of State on NY County. LLC formed in Delaware (DE) on NY 12207. DE address of LLC: c/o CSC, 2711 •Private Parking Lot with 20 Spaces 12/14/07. Office location: NY County. LP 1/7/08. SSNY designated as agent of LLC Centerville Rd., Ste. 400, Wilmington, DE •1 Block from St John’s Hospital formed in Cayman Islands (CI) on 11/8/07. upon whom process against it may be served. 19808. Arts. of Org. filed with DE Secy. of •Next to Busy Shopping Center NY Secy. of State designated as agent of LP SSNY shall mail process to: William T. Obeid, State, Townsend Bldg., Dover, DE 19901. EMERGENCY •Close to all Main Transportation upon whom process against it may be •24 / 7 Access 200 Park Ave. So., Ste. 1305, NY, NY 10003, Purpose: any lawful activity. COMMUNICATIONS •On-Site Maintenance / Facility Services served and shall mail process to the principal also registered agent. Address to be maintained business address: 9 W. 57th St., 27th Fl., •24 / 7 On-Site Security Service in DE: c/o Corporation Service Company, 2711 Notice of Qualification of 440 Ninth Avenue, SYSTEMS •Handicap Compliance: Entire Space is Located NY, NY 10019. CI address of LP: M&C Centerville Rd., Ste. 400, Wilmington, DE L.P. Authority filed with NY Dept. of State on on One Level Corporate Services Ltd., P.O. Box 309GT, SPECIALISTS 19808. Arts. of Org. filed with DE Secy. Of 1/22/08. Office location: NY County. Principal Ugland House, S. Church St., George Town, Call Odette Grazina at 914-500-7112 State, 401 Federal St., Ste 4., Dover, DE business address: 1633 Broadway, Ste. 1801, • FREE PICKUP & Grand Cayman, CI. Name/address of genl. [email protected] 19901. Purpose: any lawful activities. NY, NY 10019. LP formed in Delaware (DE)on DELIVERY ptr. available from NY Secy. of State. Cert. www.GoldfarbProperties.com 12/6/07. NY Secy. of State designated as of LP filed with Registrar of Exempted LPs, • 48 HOUR NOTICE OF FORMATION: DINACHARYA LLC. agent of LP upon whom process against it Citrus Grove Bldg., George Town, Grand TURNAROUND Arts. Of Org. filed with Secy. of State of NY may be served and shall mail process to: Cayman, CI. Purpose: any lawful activity. ON REPAIRS Advertise on (SSNY) on 9/11/07. Office Location: New York c/o CT Corporation System, 111 8th Ave., • FREE ENGRAVING Notice of Formation of FEMTO CAPITAL LLC, County. SSNY designated as agent of LLC NY, NY 10011, registered agent upon whom • SHORT & LONG a domestic Limited Liability Company. Arts. of upon whom process against it may be served. process may be served. DE address of LP: TERM RENTALS www.crainsnewyork.com Org. filed with the SSNY on 09/25/07. Office SSNY shall mail process to Principal Business The Corporation Trust Co.,1209 Orange St., location: NYCounty. SSNY has been designated Location: 95 Lexington Avenue, #1N, NY, NY Wilmington, DE 19801. Name/address of as agent upon whom process against the LLC 10016. Purpose: any lawful activity. genl. ptr. available from NY Secy. of State. Call John Gallagher may be served. SSNY shall mail a copy of Cert. of LP filed with DE Secy. of State, 401 307 Fifth Avenue, NY 10016 process to: The LLC, 10 Downing St., #3W, Notice of Qualification of Culligan Dealer Co., Federal St., Dover, DE 19901. Purpose: any 212-532-7400 @ 212-210-0189 NY, NY 10014. Purpose: Any Lawful Purpose. LLC. Authority filed with NY Dept. of State on lawful activity. www.metrocomradio.com 1/25/08. Office location: NY County. Principal ACQUIRE NYC LLC, a domestic Liability business address: 9399 W. Higgins Rd., Ste. Notice of Formation of JESE APPAREL, Company (LLC) filed with the Sec of State of 1100, Rosemont, IL 60018. LLC formed in LLC. Arts. of Org. filed with Secy. of State NY (SSNY) on 1/2/07. NY office Location: Delaware (DE) on 10/15/97. NY Secy. of of N.Y. (SSNY) on 8/27/07. Office location: PUBLIC & LEGAL NOTICES NEW YORK County. SSNY is designated as State designated as agent of LLC upon whom NY County. SSNY designated as agent of agent upon whom process against the LLC process against it may be served and shall LLC upon whom process against it may be Notice of Qualification of Simon Property Notice of Qualification of BS N961DL LLC. may be served. SSNY shall mail a copy of mail process to: c/o CT Corporation System, served. SSNY shall mail process to: c/o Group Administrative Services Partnership, Authority filed with NY Dept. of State on any process against the LLC served upon 111 8th Ave., NY, NY 10011, registered agent Wachtel & Masyr, 110 E. 59th St., NY, NY L.P. Authority filed with NY Dept. of State 12/17/07. Office location: NY County. Principal him/her to CORPORATION SERVICE COMPANY, upon whom process may be served. DE 10022. Purpose: any lawful activity. on 1/29/2008. Office location: NY County. business address: 383 Madison Ave., NY, NY 80 STATE STREET, ALBANY, NY 12207. address of LLC: 1209 Orange St., Wilmington, Principal business address: 225 W. Washington 10179. LLC formed in Delaware (DE) on General purposes. DE 19801. Arts. of Org. filed with DE Secy. Notice of Formation of 160 Jamaica Realty St., Indianapolis, IN 46207. LP formed in 12/12/07. NY Secy. of State designated as of State, 401 Federal St., Dover, DE 19901. LLC. Arts. of Org. filed with Secy. of State Delaware (DE) on 12/3/1993. NY Secy. of agent of LLC upon whom process against it MADISON HOTEL LLC Articles of Org. filed NY Purpose: consumer and commercial water of N.Y. (SSNY) on 5/3/07. Office location: State designated as agent of LP upon whom may be served and shall mail process to: c/o Sec. of State (SSNY) 12/12/07. Office in NY products and services. NY County. SSNY designated as agent of process against it may be served and shall CT Corporation System, 111 8th Ave., NY, Co. SSNY desig. agent of LLC upon whom LLC upon whom process against it may be mail process to: c/o CT Corporation System, NY 10011, registered agent upon whom process may be served. SSNY shall mail copy Notice of Formation of BLUE SEA served. SSNY shall mail process to: c/o 111 8th Ave., NY, NY 10011, registered agent process may be served. DE address of LLC: of process to c/o Arthur J.Israel, 260 Madison CONSTRUCTION CO. LLC formerly Bluestone Conway Stores, Inc., 1333 Broadway, NY, upon whom process may be served. DE c/o Corporation Trust Co., 1209 Orange St., Ave., 17th Fl., NY, NY 10016. Purpose: Any Seavey Builders & Developers LLC. Arts. of NY 10018, Attn: Richard Cohen. Purpose: address of LP: c/o The Corporation Trust Co., Wilmington, DE 19801. Arts. of Org. filed with lawful purpose. Principal business location: Org. filed with Secy. of State of N.Y. (SSNY) any lawful activity. 1209 Orange St., Wilmington, DE 19801. DE Secy. of State, Div. of Corps., Townsend 150 E. 52nd St., 10th Fl., NY, NY 10022. on 3/17/1999. Office location: NY County. Name/address of genl. ptr. available from NY Bldg.,Dover, DE 19901. Purpose: any lawful SSNY designated as agent of LLC upon whom Notice of Qualification of BR 1355 FIRST Secy. of State. Cert. of LP filed with DE Secy. activity. NOTICE OF FORMATION OF CarbonNeutrality process against it may be served. SSNY AVENUE 24, LLC. Authority filed with Secy. of of State, 401 Federal St., Dover, DE 19901. LLC. Article of Organization filed with the shall mail process to: Three Park Avenue, State of N.Y. (SSNY) on 1/8/08. Office location: Purpose: all lawful purposes. NOTICE OF FORMATION OF LIMITED LIABILITY Secretary of State of NY(SSNY)on11/02/2007. NY, NY 10016. Purpose: any lawful activity. NY County. LLC formed in Delaware (DE) on COMPANY. NAME: MEGA EQUITY LLC. Office location NEW YORK County. SSNY 1/7/08. SSNY designated as agent of LLC Notice of Formation of Bayles Resource LLC. Articles of Organization were filed with the has been designated as agent upon whom Notice of Formation of CCM Property upon whom process against it may be served. Arts. of Org. filed with NY Dept. of State on Secretary of State of New York (SSNY) on process against it may be served. The Post Management LLC, Art. of Org. filed Sec'y of SSNY shall mail process to principal business 1/7/2008. Office location: NY County. Secy. of 12/05/07. Office location: New York County. Office address to which the SSNY shall mail a State (SSNY) 12/4/07. Office location: NY location: c/o Bluerock Real Estate, LLC, 680 State designated as agent of LLC upon whom SSNY has been designated as agent of the copy of any process against the LLC served County. SSNY designated as agent of LLC Fifth Ave., 16th Fl., NY, NY 10019. DE address process against it may be served and shall LLC upon whom process against it may be upon him/her is C/O the LLC 10 East 39th St.. upon whom process against it may be served. of LLC: c/o Corporation Service Company, mail process to: c/o Casey C. Bayles, 1065 served. SSNY shall mail a copy of process New York, NY 10016. Purpose of LLC: to SSNY shall mail copy of process to c/o 2711 Centerville Road, Ste. 400, Wilmington, Park Ave., NY, NY 10128, principal business to the LLC, 545 West 111th Street, #7C, engage in any lawful act or activity. Street Cayuga Capital Management LLC, 331 W. DE 19808. Cert. of Form. filed with DE Secy. address of the LLC. Term: until 12/31/2099. New York, New York 10025. Purpose: For address of Principal Business location is: 10 57th St., Ste. 301, NY, NY 10019. Purpose: of State, P.O. Box 898, Dover, DE 19901. Purpose: any lawful activity. any lawful purpose. East 39th St.. New York, NY 10016. any lawful activities. Purpose: any lawful activity.

36 | Crain’s New York Business | February 18, 2008 nb07p36_37cls.qxp 2/14/08 11:26 AM Page 37

PUBLIC & LEGAL NOTICES

Notice of Qualification of Amber Latin Notice of Formation of FlatIron Rentals, LLC. Notice of Qualification of RP Stellar Milk Notice of Formation of a Limited Liability Notice of Qualification of Longacre HP GP, American Investments LLC, App. for Auth. Arts.of Org. filed with Secy. of State of N.Y.(SSNY) Owner, LLC. Authority filed with Secy. of State Company (LLC): Name: Basser & Bigio LLC.; LLC. Authority filed with Secy. of State of filed Sec'y of State (SSNY) 12/3/07. Office on 10/26/05. Office location: NY County. SSNY of N.Y. (SSNY) on 12/20/07. Office location: Articles. of Organization filed with Secy. of N.Y. (SSNY) on 12/19/07. Office location: location: NY County. LLC org. in DE 12/12/06. designated as agent of LLC upon whom NY County. LLC formed in Delaware (DE) State of NY (SSNY) on 10/30/2006. Office NY County. Principal business location: SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall on 12/18/07. SSNY designated as agent of location: NY County. SSNY designated as Longacre HP GP, LLC, 810 Seventh Ave., process against it may be served. SSNY shall mail process to: The LLC, c/o Stein deVisser LLC upon whom process against it may be agent of LLC upon whom process against it 22nd Fl., NY, NY 10019. LLC formed in mail copy of process to Attn: Jed Rubin, 153 & Mintz, P.C. , 29 W. 38th Street, 14th Fl., NY, served. SSNY shall mail process to: c/o CT may be served. SSNY shall mail process to: Delaware (DE) on 11/13/07. SSNY designated E. 53rd St., 57th Fl., NY, NY 10022. DE NY 10018. Purpose: any lawful activity. Corporation System, 111 8th Ave., NY, NY c/o Basser & Bigio LLC, 648 Broadway, NY, as agent of LLC upon whom process against office addr.: c/o CSC, 2711 Centerville Rd., 10011, registered agent upon whom process NY 10012. Purpose: any lawful act or activity. it may be served. SSNY shall mail process Wilmington, DE 19808. Cert. of Form. on file: Name: AESTHETIX, LLC Art. Of Org. Filed may be served. DE address of LLC: 1209 LLC is to dissolve: No specific date. to: c/o CT Corporation System, 111 8th SSDE, Townsend Bldg., Dover, DE 19901. Sec. Of State NY 12/21/07. Off. Loc.: New Orange St., Wilmington, DE 19801. Arts. of Ave., NY, NY 10011, registered agent upon Purpose: any lawful activities. York Co. SSNY designated as Agent upon Org. filed with DE Secy. of State, 401 Federal FOUR LIGHT PROPERTIES, L.P., a foreign whom process may be served. DE address whom process against it may be served. St., Ste. 4, Dover, DE 19901. Purpose: any Limited Partnership (LP) filed with Secretary of LLC: c/o The Corporation Trust Company, Notice of Qualification of BR 1355 First Avenue SSNY to mail copy of process to THE LLC, lawful act or activity. of State on 12/18/07. NY Office location: NEW 1209 Orange St., Wilmington, DE 19801. 11, LLC. Authority filed with NY Dept. of State c/o Parkmed/ Eastern Women’s Center, 800 YORK County. SSNY is designated as agent Cert. of Form. filed with DE Secy. of State, on 10/10/07. Office location: NY County. LLC Second Ave., 7th Flr., New York, NY 10017. Notice of Registration of Sanders, Ortoli, upon whom process against the LP may be Townsend Bldg., Dover, DE 19901. Purpose: formed in Delaware (DE) on 10/5/07. NY Secy. Purpose: Any lawful act Vaughn-Flam Rosenstadt LLP. Certificate filed served. SSNY of State shall mail a copy of any lawful activity. of State designated as agent of LLC upon with Secy. of State of NY (SSNY) on 5/30/07. any process against the LP served upon whom process against it may be served and Notice of Qualification of Capstone Real Estate Office location: NY County. SSNY designated him/her to THE PARTNERSHIP, 111 EAST Notice of Formation of NYD ASC Management, shall mail process to: c/o Bluerock Real Estate, Management, LLC. Authority filed with Secy. as agent of LLP upon whom process against 56TH STREET, APT. 1602, NEW YORK, NY LLC. Arts. of Org. filed with NY Dept. of State LLC, 680 5th Ave., 16th Fl., NY, NY 10019, of State of N.Y. (SSNY) on 11/5/07. Office it may be served. SSNY shall mail process to: 10022 General purposes. on 12/12/07. Office location: NY County. Secy. principal business address of the LLC. DE location: NY County. LLC formed in Delaware 501 Madison Ave., 14th Fl., NY, NY 10022. of State designated as agent of LLC upon address of LLC: c/o Corporation Service Co., (DE) on 5/10/07. SSNY designated as agent Purpose: practice the profession of law. Notice of Formation of Caroline Apartments whom process against it may be served and 2711 Centerville Rd., Ste. 400, Wilmington, DE of LLC upon whom process against it may be Developer, LLC. Arts. of Org. filed with Secy. shall mail process to: c/o CT Corporation 19808. Cert. of Form. filed with DE Secy. of served. SSNY shall mail process to: 1350 Notice of Formation of 330 Investors, LLC. Arts. of State of NY (SSNY) on 12/19/07. Office System,111 8th Ave.,NY, NY 10011, registered State,P.O.Box 898, Dover, DE 19901.Purpose: Avenue of the Americas, 24th Fl., NY, NY of Org. filed with Secy. of State of NY (SSNY) location: NY County. Principal business agent upon whom process may be served. any lawful activity. 10019. DE address of LLC: Capstone Real on 12/17/07. Office location: NY County. location: 60 Columbus Circle, NY, NY 10023. Purpose: any lawful activity. Estate Management, LLC, c/o The Company Principal business location: 1330 Avenue of SSNY designated as agent of LLC upon Notice of Qualification of BR 1355 First Avenue Corporation, 2711 Centerville Road, Ste. 400, the Americas, 23rd Fl., NY, NY 10019. SSNY whom process against it may be served. NOTICE OF FORMATION OF LIMITED LIABILITY 18 Tier I Member, LLC. Authority filed with NY Wilmington, DE 19808. Arts. of Org. filed with designated as agent of LLC upon whom SSNY shall mail process to: c/o Corporation COMPANY. NAME: HBS FOOD LLC. Articles of Dept. of State on 10/15/07. Office location: NY DE Secy. of State, 401 Federal St., Ste. 4, process against it may be served. SSNY shall Service Company, 80 State St., Albany, NY Organization were filed with the Secretary of County. LLC formed in Delaware (DE) on Dover, DE 19901. Purpose: any lawful activity. mail process to: Edward D. Feldstein, Esq., 10 12207. Purpose: any lawful activity. State of New York (SSNY) on 06/29/07. The 10/5/07. NY Secy. of State designated as agent Weybosset St., 8th Fl., Providence, RI 02903. latest date of dissolution is 12/31/2107. Office of LLC upon whom process against it may be GHION ENTERPRISES, LLC, a domestic Limited Purpose: any lawful activity. Name of LLC: SEAPORT GROUP LEASING, location: New York County. SSNY has been served and shall mail process to: c/o Bluerock Liability Company (LLC), filed with the Sec LLC. Articles of Org. filed Dept. of State of NY designated as agent of the LLC upon whom Real Estate, LLC, 680 5th Ave., 16th Fl., NY, of State of NY (SSNY) on 11/8/07. NY Office Notice of Qualification of 1225 Realty Owner on 12/28/07. Office location in NY: New York process against it may be served. SSNY NY 10019, principal business address of the location:NEWYORK County.SSNY is designated LLC. Authority filed with Secy. of State of County. Principal bus. loc. 360 Madison shall mail a copy of process to the LLC, 580 LLC. DE address of LLC: c/o Corporation as agent upon whom process against the N.Y. (SSNY) on 1/22/08. Office location: NY Avenue, 22nd Floor, New York, NY 10017. Fifth Avenue, Suite 708, New York, New York Service Co., 2711 Centerville Rd., Ste. 400, LLC may be served. SSNY shall mail a County. LLC formed in Delaware (DE) on Secy. of State designated as agent of LLC 10036. Purpose: For any lawful purpose. Wilmington, DE 19808. Cert. of Form. filed copy of any process against the LLC served 3/23/07. SSNY designated as agent of LLC upon whom process against it may be served. with DE Secy. of State, P.O. Box 898, Dover, upon him/her to THE LLC, 34 MT. MORRIS upon whom process against it may be served. Sec. of State shall mail a copy of process to BRONZE EAGLE LLC, a domestic Liability DE 19901. Purpose: any lawful activity. PARK, NY, NY 10027. General purposes. SSNY shall mail process to principal business 360 Madison Avenue, 22nd Floor, New York, Company (LLC) filed with the Sec of State of location: c/o The Cherit Organization, 404 Fifth NY 10017. Purpose: (i) leasing and subleasing NY (SSNY) on 10/11/07. NY office Location: Notice of Formation of HAYS VENTURES, Notice of Formation of KNICKERBOCKER Ave., 5th Fl., NY, NY 10018. DE address of LLC: of real property; and (ii) any other lawful NEW YORK County. SSNY is designated as LLC. Arts of Org filed with Secy of State of PROPERTIES LLC. Arts. of Org. filed with c/o United Corporate Services, Inc.,874 Walker business activity. agent upon whom process against the LLC NY (SSNY) on 08/13/2003. Office location: Secy. of State of NY (SSNY) on 1/3/08. Office Road, Ste. C, Dover, DE 19904. Arts. of Org. may be served. SSNY shall mail a copy of any New York County. SSNY designated as agent location: NY County. SSNY designated as filed with DE Secy. of State, Townsend Bldg., THE NUCLEUS GROUP LLC, a domestic process against the LLC served upon him/her of LLC, upon whom process against it may agent of LLC upon whom process against it Dover, DE 19901. Purpose: any lawful activity. Limited Liability Company (LLC), filed with to THE LLC, 245 CENTRE STREET, NY, NY be served. SSNY shall mail process to: may be served. SSNY shall mail process to the Sec of State of NY (SSNY) on 11/15/07. 10013. General purposes. Richard J. Tufano, Esq., 475 Fifth Avenue, principal business location: c/o The Hudson Notice of Formation of AZ Zip Properties, LLC. NY Office location: NEW YORK County. Suite 1200, New York, NY 10017. Purpose: Companies, Inc., 826 Broadway, 11th Fl., NY, Arts. of Org. filed with NY Dept. of State on SSNY is designated as agent upon whom Notice of Formation of Okin Hill I,LLC. Arts. of Real Estate service firm. NY 10003. Purpose: any lawful activity. 12/19/07. Office location: NY County. Principal process against the LLC may be served. Org. filed with Secy. of State of NY (SSNY) business address: 15 Central Park West, NY, SSNY shall mail a copy of any process on 1/24/08. Office location: NY County. SSNY HIGH ROAD APPAREL, LLC, Articles of Org. Notice of Formation of Red Apple Surf Realty NY 10023. Secy. of State designated as agent against the LLC served upon him/her to THE designated as agent of LLC upon whom filed in N.Y. Sec. of State (SSNY) 15th day of II LLC. Arts. of Org. filed with Secy. of State of LLC upon whom process against it may be LLC, 5 TIMES SQUARE, 24TH FLR., NY, NY process against it may be served. SSNY October, 2007. Office in New York Co. at 244 of NY (SSNY) on 1/2/08. Office location: NY served and shall mail process to: 8000 Walton 10036. General purposes. shall mail process to: Corporation Service Fifth Avenue, Suite K218, New York, New York County. SSNY designated as agent of LLC Pkwy., Ste. 100, New Albany, OH 43054. Company, 80 State St., Albany, NY 12207. 10001. SSNY design. agt. Upon whom upon whom process against it may be Purpose: any lawful activity. NOTICE OF FORMATION of Limited Liability Purpose: all lawful acts and activities. process may be served. SSNY shall mail copy served. SSNY shall mail process to principal Company (LLC) Palladium Estates LLC. Arts. of process to 244 Fifth Avenue, Suite K218, business location: 823 Eleventh Ave., NY, NY NOTICE OF FORMATION OF LIMITED LIABILITY Of Org. filed with Secy. Of State of N.Y.(SSNY) Notice of Qualification of Morgan Evergreen, New York, New York 10001. Reg. Agt upon 10019, Attn: John A. Catsimatidis. Purpose: COMPANY. NAME: GS ASSETS LLC. Articles of on 1/14/08. Office location: New York County. LLC. Authority filed with NY Dept. of State on whom process may be served: Spiegel & any lawful activity. Organization were filed with the Secretary of SSNY designated as agent of LLC upon whom 1/8/08. Office location: NY County. LLC Utrera, P.A., P.C. 1 Maiden Lane, NYC 10038 State of New York (SSNY) on 03/26/07. Office process against it may be served. SSNY shall formed in Delaware (DE) on 9/6/07. NY Secy. 1 800 576-1100 Purpose: Any lawful purpose. Name of LLC: Seaport Group Realty, LLC. location: New York County. SSNY has been mail process to: C/O the LLC, 325 East 41st of State designated as agent of LLC upon Articles of Org. filed Dept. of State of NY on designated as agent of the LLC upon whom Street, #305, NY, NY 10017. Principal business whom process against it may be served and Notice of Formation of 2655 Frederick Douglas December 5, 2007. Office location in NY: New process against it may be served. SSNY shall location: 325 East 41st Street, #305, NY, shall mail process to the principal business LLC. Arts. of Org. filed with Secy. of State of York County. Principal bus. loc. 360 Madison mail a copy of process to the LLC, 423 Clay NY 10017. Purpose: any lawful activity. address of the LLC: 845 UN Plaza, Ste. 59A, N.Y. (SSNY) on 1/8/08. Office location: NY Avenue, 22nd Floor, New York, NY 10017. Pitts Road, East Northport, New York 11731. NY, NY 10017. DE address of LLC: 2711 County. SSNY designated as agent of LLC Secy. of State designated as agent of LLC Purpose: For any lawful purpose. Notice of Qualification of Stonehenge Fund Centerville Rd., Ste. 400, Wilmington, DE upon whom process against it may be served. upon whom process against it may be served. III Promote LLC, App. for Auth. filed Sec'y 19808. Arts. of Org. filed with DE Secy. of SSNY shall mail process to principal business Sec. of State shall mail a copy of process to Notice of Formation of Skyview Vista LLC. of State (SSNY) 12/10/07. Office location: State, 401 Federal St., Dover, DE 19901. location: c/o The LLC, 146 W. 57th St., NY, NY 360 Madison Avenue, 22nd Floor, New York, Arts. of Org. filed with NY Dept. of State on NY County. LLC org. in DE 10/11/07. SSNY Purpose: any lawful activity. 10019. Purpose: any lawful activity. NY 10017. Purpose: (i) to act as a real estate 11/13/07. Office location: NY County. Secy. designated as agent of LLC upon whom brokerage company; and (ii) any other lawful of State designated as agent of LLC upon process against it may be served. SSNY STRATEGIC VISUAL CONSULTING, LLC, a NOTICE OF FORMATION of Stealth business activity. whom process against it may be served and shall mail copy of process to c/o Nat. Reg. domestic Liability Company (LLC) filed with Communications Services, LLC. Arts. of Org. shall mail process to: c/o Marianne Schmitt Agents, 875 Ave of the Americas, NY, NY the Sec of State of NY (SSNY) on 8/7/07. NY filed with Secy. of State of NY (SSNY) on Name: KC 129-09, LLC Art. Of Org. Filed Sec. Hellauer, DLA Piper US LLP, 6225 Smith 10001, the Reg. Agt. upon whom proc. may office Location: NEW YORK County. SSNY 10/19/07. Office location: New York County. Of State NY 12/11/03. Off.Loc,: New York Ave., Baltimore, MD 21209. Purpose: any be served. DE office addr.: 160 Greentree is designated as agent upon whom process SSNY designated as agent of LLC upon whom Co. SSNY designated as agent upon whom lawful activity. Dr., Dover, DE 19904. Cert. of Form. on file: against the LLC may be served. SSNY shall process against it may be served. SSNY shall process against it may be served. SSNY to SSDE, Townsend Bldg., Dover, DE 19901. mail a copy of any process against the mail process to: 50 Broad St., 8th FL, NY, NY mail copy of process to The LLC C/O Kevin D. NOTICE OF FORMATION OF 455 W43rd Realty, Purpose: any lawful activities. LLC served upon him/her to THE LLC, 225 10004. Principal business location: 50 Broad Kim, 235 E. 40th St., Ste. 9A, NY, NY 10016. LLC.Article of organization filed with Secretary PARK AVENUE, 24TH FLR., NY, NY 10167. St., 8th FL, NY, NY 10004. Purpose: Any Purpose: Any lawful act. of State of NY(SSNY)on 08/02/2007. Office TOM PALMER PROJECTS LLC, a domestic General purposes. lawful act. location: New York County. SSNY has been Limited Liability Company (LLC), filed with NOTICE OF FORMATION of California Wine designated as agent upon whom process the Sec of State of NY (SSNY) on 1/7/08. Notice of Qualification of VIP Capital Notice of Qualification of SLG 1515 Asset Merchants LLC. Arts. Of Org. filed with Secy. against it may be served. The Post Office NY Office location: NEW YORK County. Management L.P. Authority filed with NY Management Fee LLC, App. for Auth. filed Of State of N.Y. (SSNY) on 10/31/07. Office address to which SSNY shall mail a copy of SSNY is designated as agent upon whom Dept. of State on 1/17/08. Office location: Sec'y of State (SSNY) 4/4/02. Office location: location: New York County. SSNY designated any process against the LLC served upon process against the LLC may be served. NY County. LP formed in Delaware (DE) on NY County. LLC org. in DE 4/3/02. SSNY as agent of LLC upon whom process against him is C/O M. Daniel Bach, Esq. 38 W32nd SSNY shall mail a copy of any process 12/19/07. NY Secy.of State designated as agent designated as agent of LLC upon whom it may be served. SSNY shall mail process St, Suite 1210, NY, NY 10001. Purpose of against the LLC served upon him/her to of LP upon whom process against it may be process against it may be served. SSNY to: 44 E. 12th, 9A, NY, NY 10003. Principal LLC: to engage in any lawful act or activity. DEBOOT & SIRIS P.C., 60 E. 42ND ST., NY, served and shall mail process to: 152 W. 57th shall mail copy of process to c/o Nat. Reg. business location: 15 Bridge St., NY, NY NY 10165. General purposes. St., 46th Fl., NY, NY 10019, principal business Agents, 875 Ave of the Americas, NY, NY 10004. Purpose: any lawful activity. Notice of Qualification of Goldman Sachs address of the LP. DE address of LP: c/o 10001, the Reg. Agt. upon whom proc. may Private Equity Partners Asia Fund, L.P. NOTICE OF FORMATION OF LIMITED LIABILITY Corporation Service Co., 2711 Centerville be served. DE office addr.: 160 Greentree Dr., NOTICE OF FORMATION of TONIC STUDIO Authority filed with Secy. of State of N.Y. COMPANY. NAME: CHINA MANAGEMENT, Rd., Ste.400, Wilmington, DE 19808. Dover, DE 19904. Cert. of Form. on file: CENTER, LLC (LLC). Articles of Organization (SSNY) on 12/3/07. Office location: NY LLC. Articles of Organization were filed with Name/address of genl. ptr. available from NY SSDE, Townsend Bldg., Dover, DE 19901. filed with the Secretary of State of New York County. LP formed in Delaware (DE) on the Secretary of State of New York (SSNY) Secy. of State. Cert. of LP filed with DE Secy. Purpose: any lawful activities. (SSNY) on 11/13/07. Office Location: New 3/22/07. SSNY designated as agent of LP on 12/19/07. Office location: New York County. of State, Townsend Bldg., Dover, DE 19901. York County. SSNY designated as agent of upon whom process against it may be served. SSNY has been designated as agent of the Purpose: any lawful activity. 45 WATERS EDGE ROAD, LLC Articles of Org. LLC upon whom process against it may be SSNY shall mail process to: 85 Broad St., NY, LLC upon whom process against it may be filed NY Sec. of State (SSNY) 10/16/07. Office served. SSNY shall mail process to: C/O NY 10004. DE address of LP: 2711 Centerville served. SSNY shall mail a copy of process in NY Co. SSNY desig. agent of LLC upon Brian C. Purcell, Esq., 222 Central Park Road, Ste. 400, Wilmington, DE 19808. to the LLC, c/o Marc Packer, 888 7th Avenue, To place your classified whom process may be served. SSNY shall Avenue, Suite 1500, Virginia Beach, VA Name/address of each genl. ptr. available from New York, New York 10106. The address of mail copy of process to 1031 Vest, LLC, 44 23462. Principal Business Location: 50 East SSNY. Cert. of LP filed with DE Secy. of State, the registered agent is c/o Corporation Service ad call John Gallagher Wall St., 10th Fl., NY, NY 10005. Purpose: Any 42nd Street, 11th Floor, New York, NY 10017. Townsend Bldg., Dover, DE 19901. Purpose: Company, 80 State Street, Albany, New York lawful purpose. Purpose: Any lawful activity. any lawful activity. 12207. Purpose: For any lawful purpose. @ 212-210-0189

February 18, 2008 | Crain’s New York Business | 37 Project9 2/14/08 5:24 PM Page 1 CNYB 02-18-08 A 39 2/14/2008 7:37 PM Page 1

BUSINESS TABLE TALK A new quartet of casual Italians from four veterans PAGE 43

GOTHAM GIGS Star AMANDA GAZE says concierge that the idea of recycling bottles and ABBIE NEWMAN, 48, is the cans at Euro RSCG woman with the golden Worldwide has “given Rolodex, keeping many New a lot of people a Yorkers happy with Abigail hard time.” Michaels Concierge. PLEASED TO SERVE Ms. Newman spent 17 years at the InterContinental hotel. When business dropped after Sept. 11, she and fellow concierge Michael Fazio decided to use their network of contacts in the residential market.They co-founded Abigail Michaels in 2002 and now boast a portfolio of 40 apartment buildings. “We are big people- pleasers,” she says. COVERS EVERYTHING The company, with 15 employees, provides services that range from procuring theater tickets to hanging art. Ms. Newman has a midtown office, but many of the concierges work at buildings across Manhattan. MINTY FRESH Some requests are more difficult to fulfill than others. One client wanted a certain peppermint ice cream for his daughter’s Sweet Sixteen but couldn’t remember where he had eaten it. Ms Newman worked with a chef to re-create the dessert in time for the celebration. “I live this,” she says. —adrianne pasquarelli EXPERT OPINIONS KIDS ACTIVITIES DURING MIDWINTER RECESS new york city schools are closed this week, so it’s a great THE STATS opportunity to do things with Nearly your children. If you’re not afraid to make a mess, try Not easy going green Spin Art from Alex Toys— but cover up the kitchen first. For younger kids, there’s a Bringing offices up to speed is a slow process new game, Zingo, which is green10 buildings are 0 under like Bingo but uses picture BY MATTHEW FLAMM construction or in the tiles instead of numbers. Or pipeline in New York City you can get out of the house ver the past year, Anvil Knitwear has adopted a range of and take the youngsters environmentally friendly practices in its Manhattan offices— Total of ice-skating at Chelsea Piers or to the American Museum everything from adjusting thermostats and recycling ink cartridges of Natural History.The to using coffee mugs instead of paper cups. dinosaur exhibit is But when Ellen Singer, Anvil’s executive vice president of always fun. marketing, showed up at a conference on organic cotton in the fall, she —shari misher million square feet is more stenzler was shocked to find out that the environmentally correct resort where 25 than in any other city Co-founder the meetings were held had no televisions, telephones or any other Source: New York City Economic Kidville electronic devices in the guest rooms.“I nearly See NOT EASY on Page 40 Development Corp. O February 18, 2008 | Crain’s New York Business | 39 CNYB 02-18-08 A 40 2/14/2008 7:35 PM Page 1

BUSINESS LIVES

may get the message but simply preparation and an understanding aren’t interested. of a firm’s culture. The best of in- Not easy for offices to go green Marketing giant Euro RSCG tentions, they add, can be under- Worldwide has launched a host of mined by the reality of how people green initiatives in the last year. It behave. Continued from Page 39 Changing old habits can create timer in her office that was shutting invests in forestry projects that off- “Most of us defeat green pro- flipped out—we’re a bunch of busi- unforeseen complications for em- off the lights every five minutes set the company’s carbon footprint, grams in the office quite handily,” nesspeople in need of Internet con- ployees and their employers while she tried to write. encourages employees to bike to says Herb Hauser, president of nections,” says Ms. Singer. “We who are trying to figure out work,has installed compact fluores- Midtown Technologies, which ad- were all huddled in the lobby fight- which eco-friendly prac- 1,000 Crossed wires cent lightbulbs and has given every- vises businesses on turning working for chairs to get work done.” tices will be effective and TONS of some of the difficulties one a coffee mug. places green. He notes that at his As the polar ice caps melt and a which ones will just get on commercial trash in going green start with But instituting policies is one own company,he often finds “every- green fever sweeps corporate Amer- everybody’s nerves. are collected by communications. E-mails thing;getting people to follow them thing but paper” in the paper recy- ica, more and more businesses are “You still have to be one carter in a day about double-sided printing is another. cling bin. installing energy-efficient lights, smart about your business or using a hybrid-car serv- “It’s given a lot of people a hard Mr. Hauser says firms must de- shutting down computers overnight objectives,” says Ms. Singer. ice,for instance,can get lost in the sea time, this whole idea of recycling cide beforehand what can realisti- and asking employees to please use In her case, being smart includ- of daily business messages. cans and bottles,” says Amanda cally be accomplished. the recycling bins. ed disabling the motion-sensitive And then there are staffers who Gaze, an account supervisor at the Organic Works Marketing has company and a green enthusiast. If an eco-friendly practice is “easy and doesn’t interrupt people’s lives, then ‘I’d say 75% of they don’t mind it,” adds the supervisor, who’s often the one doing the people are not sorting after meetings. Some staffers find that piling on doing sorting’ guilt is an effective tool. “I shame people into using a mug of trash sometimes,” says Sarah-Jayne Hall, an associate at law firm DLA Piper. She has also converted colleagues to double-sided printing just by doing it herself—and pointing out which lofty goals.The public relations and preference to select after clicking on marketing firm with a sustainable the “Print” function. slant keeps replaceable plastic bags by the reception desk in its midtown A slow change south office so that staffers going green enthusiasts may find it out to shop or buy lunch won’t use frustrating that co-workers contin- new ones. ue to print out their e-mails and The marketing and public rela- throw cans in the paper bins.But the tions company also discourages people who do the dirtiest part of employees from using their own the recycling job—collecting the garbage cans. Instead, a designated trash—say change is coming, albeit monitor goes around at the end of slowly. the day with two bags—one for re- “I’d say 75% of people are not do- cyclables, the other for material ing sorting,”says Domenic Monop- that can be delivered as compost oli, chief operating officer of Filco to the farmers market in Union Carting Corp.,which collects about Square. 1,000 tons of commercial trash in But even Organic Works finds Manhattan every day.“But it used to challenges. “[Collecting compost] be 85%, so it’s getting better.” has been the least successful,” ac- There’s still a long way to go.Ex- knowledges partner Mara Engle. perts on green initiatives say that effecting change takes a lot of COMMENTS? [email protected]

TIPS FOR OFFICE MANAGERS LOOKING TO GO GREEN PUT SOMEONE IN CHARGE. “There has to be a person with authority to make the necessary changes, set targets and report on them,” says Mark Armitage, U.S. president of consulting firm The CarbonNeutral Co. MAKE SMALL CHANGES PART OF A LARGER STRATEGY. “If you don’t give employees that context, they’ll just see [going green] as another thing making their day less comfortable,” Mr. Armitage says. TAKE A GRASSROOTS APPROACH. “The people making [everyday] decisions are going to come up with the best ideas, because they’re the ones tinkering with these things all day long,” says Rachel Webber, director of energy initiatives at News Corp. in New York. buck ennis

40 | Crain’s New York Business | February 18, 2008 CNYB 02-18-08 A 41 2/14/2008 5:59 PM Page 1

BUSINESS LIVES CORPORATE LADDER Shaina Nestor Reading the Palms Restaurant general rants, Palm and Palm Too.The venues are located across the street from PERSONNEL FILE manager aims to each other on Second Avenue in midtown. COMPANY Palm Restaurant Group bring in more women, The restaurants were previously TITLE General manager run by two veteran Palm managers younger people with 30 years and 26 years on the AGE 36 job. Ms. Nestor, who oversees 100 RÉSUMÉ Director of operations, staffers,brings a fresh perspective to B.R. Guest Restaurant Group; BY LISA FICKENSCHER a company that is trying to shed its director of operations, Tavern on stodgy image as a bastion for stogie- the Green and Russian Tea Room s a college student chomping men who are neither earning some extra cash young nor hip. BIRTHPLACE Brooklyn by waiting tables at a “The two Palms have an older MANAGEMENT STYLE Fair, Long Island sports bar, crowd,” says Chief Executive Wally approachable Shaina Nestor stum- Ganzi, “and Shaina is very interest- Abled onto her life’s career. ed in attracting more women and “I got into the restaurant busi- young people.” erated a total of about $12 million ness without intending to be in it,” in revenues annually, with sales says Ms. Nestor. “But it was a natu- Adding fish dishes growth of about 1% each year— ral fit for me.” last year, the company began though last year sales were down

Her first formal job hunt landed courting female and younger cus- 1%.With Ms.Nestor in charge,Mr. byrne daniel her a position as a hostess at Win- tomers by adding more fish dishes Ganzi expects sales to increase 5% dows on the World, where she was and salads to its menu.Next month, this year, driven in part by a push to was also responsible for an improved which is known for its low employ- quickly promoted to dining room it is introducing a new cocktail develop late-night business at the ranking in the 2005 Zagat Survey,to ee turnover. manager. Soon she found herself at menu aimed at increasing its hap- two Palms. fifth-most-popular restaurant,from Her father, a meat-and-pota- two legendary family-owned res- py-hour business. The charitable First on her plate is a renovation 17th in 2002. She was rewarded for toes fan, couldn’t be happier with taurants in the city—the Russian arm of the company, PalmCares, at Palm Too, where Ms. Nestor is the boost by being named one of the her current choice. The director of Tea Room and its sister, Tavern on which had supported prostate can- putting together a plan to increase directors of operations at B.R. investigations for the Port Author- the Green—as their director of op- cer organizations, is now also the size of the tiny bar. Guest Restaurant Group. ity of New York and New Jersey erations. championing organizations that Before joining The Palm, she has become a regular customer at Now, she has joined another sto- help disadvantaged women, such as worked in Steve Hanson’s restau- Here to stay both Palms.“He hands out more of ried family-owned restaurant com- Dress for Success. rant empire as general manager of she envisions a long run at her my business cards than I do,” she pany,the Palm Restaurant Group,as Mr.Ganzi has high hopes for his Blue Water Grill. During her ten- current employer. “I wanted to be jokes. the first female general manager of new hire. For seven years, the two ure, annual revenues increased to with a company that I could work at two of the steakhouse chain’s restau- restaurants have consistently gen- $18 million from $16 million. She until I retire,” she says of the Palm, COMMENTS? [email protected]

www.amper-pc.com

February 18, 2008 | Crain’s New York Business | 41 CNYB 02-18-08 A 42 2/14/2008 5:57 PM Page 1

BUSINESS LIVES

EXECUTIVE MOVES

ACCOUNTING & CONSULTING at J.P.Morgan Investment Bank. LAW Capgemini: Marc Zimmerman, 51, Lightyear Capital: David Cynn, 38, was Cohen & Perfetto: Stephen A. Linde, 53, HOT JOBS joined as vice president and global promoted to managing director from joined as partner. He had been senior practice executive, business information senior vice president. counsel at Holland Knight. management. He had been an executive Thierry Ho, 50, was promoted to King & Spalding: Barry P.Biggar, 55, WANTED: PRESIDENT vice president at Swingtide Inc. managing director from senior vice joined as partner. He had been a partner Eisner: Arthur Drucker, 59, joined as president. at Allen & Overy. ORGANIZATION Citizens Budget Commission partner. He has been a partner at Macquarie Capital (USA) Inc.: Michael Kirkpatrick & Lockhart Preston Gates JOB DESCRIPTION Managing a New York government watchdog Salibello & Broder. Bruder, 39, joined as managing director Ellis: Conrad E. Everhard, 47, joined as Real Data Management: Jason Machain, of the New York office and head of partner. He had been of counsel at organization with an eye toward fiscal responsibility 31, was appointed creative director, a restructuring and the special situations Thelen Reid Brown Raysman & Steiner. MOST IMPORTANT TASKS Analyzing state and city budgets and newly created position. He was formerly group. He had been managing director policies, conducting objective research, running daily operations art director for online marketing at and head of restructuring at CIBC MEDIA & ENTERTAINMENT Barnes & Noble. World Markets. Logo: Lisa Sherman, 49, was promoted to CREDENTIALS NEEDED One to three years of political/government or Sagent Advisors: Adam Reeder, 42, joined executive vice president from senior vice nonprofit experience, strong interest in public policy and advocacy ADVERTISING & COMMUNICATIONS as managing director. He was formerly a president and continues as general SALARY Behrman Communications: Jodi Balkan, managing director at UBS. manager. Prior president’s base salary was $168,415, according to a 40, was appointed president. She was Rainbow Media Holdings: Scott Collins, 2005 income tax filing formerly assistant vice president at HEALTH CARE 44, was appointed senior vice president RECRUITER In-house L’Oreal Paris. NYU Child Study Center: Margo Amgott, of national advertising sales for WE tv. Kwittken & Co.: Patrick Doherty, 34, 50, was appointed executive director, a He had been a vice president at NBC DOWNSIDE Confronting New York politicians on city and state budgets joined as managing director. He was newly created position, and chief Universal Cable Entertainment, USA UPSIDE Working at an organization that allows public advocacy of formerly a writer and producer for Good operating officer. She had been assistant network and the Sci-Fi Channel. policies Morning America. commissioner for early intervention at Real Simple magazine: Steve Sachs, 42, TargetSpot Inc.: Roger Schnur, 46, joined the city’s health department. was promoted to president of the Time The Citizens Budget Commission was founded in 1932 as a nonparti- as a senior vice president, sales. He had Inc. title from publisher. san, nonprofit civic organization that attempts to influence construc- been president of CDH Enterprises. HOSPITALITY & TOURISM Kevin White, 47, was promoted to tive changes in city and state government finances and services. JFK IAT: Janice Holden, 53, was promoted publisher from associate publisher. Previous President Diana Fortuna, who was known to clash with state FINANCE & INSURANCE to chief commercial officer from vice SmartMoney magazine: Andrew Seibert, J.P. Morgan Private Bank: Rebecca president of marketing and business 44, was promoted to publisher, custom and local politicians over budgets, left the organization after 10 years Patterson, 39, was appointed global head development. solutions, from general manager and to join the Metropolitan Opera as its budget director. —ANDREW BUCK of foreign exchange. She was formerly Millennium Hotels & Resorts: Jeff continues as vice president for the senior global foreign exchange strategist Weggeman, 43, was appointed regional Hearst Corp. title. vice president of field sales and Michael Le Du, 36, was promoted to marketing. He had been a vice president general manager, SmartMoney.com, EXECUTIVE PROMOTIONS at Aramark Harrison Lodging. from chief information officer, as senior director of communications. appointed senior vice president of The fastest way to get an announcement into Wave Hill: Claudia Bonn, 55, joined as SmartMoney.com. He was formerly senior managing development. He was formerly a partner Crain’s is to submit details online. Fill out the form executive director. She had been director, media and corporate affairs, at at Champion Partners. at www.crainsnewyork.com/submit. The executive director of the Film Society of REAL ESTATE Cushman & Wakefield Inc.. —adrianne pasquarelli Executive Moves column is also available online. Lincoln Center. CB Richard Ellis: Philip Russo, 52, joined Sherwood Equities: Ryan Nelson,31,was and sarah studley

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42 | Crain’s New York Business | February 18, 2008 CNYB 02-18-08 A 43 2/14/2008 6:03 PM Page 1

BUSINESS LIVES TABLE TALK by Bob Lape

www.shellysnewyork.com NIZZA PRICE RANGE $24.95-$48 630 Ninth Ave. (between West 44th BEST OF BOB LAPE HOURS Lunch and dinner, 7 days and West 45th streets) he newest trattoria con- (212) 956-1800 A few more Italian specialists. cept of Manhattan restaurant PRICE RANGE $10-$16 Tveteran Sheldon Fireman is HOURS Lunch and dinner, 7 days Valbella Shelly’s Tradizionale Ristorante di imon oren, an owner of more www.valbellact.com Pesce. The eatery occupies the for- than a dozen New York eater- 421 W. 13th St. (between Ninth mer home of Shelly’s Prime Steak Sies, did a nice thing in letting Avenue and Washington Street), and is part of Mr. Fireman’s chef Andy D’Amico make nice with Manhattan. (212) 645-7777. Carnegie Hall hospitality cluster. Nice, as in Nice Matin and Nizza, a One of Connecticut’s top-rated Ital- Carryover chef Shane Cash han- new theater district spot. ians is now in the meatpacking dis- dles the surf-and-turf merger with Nizza is an ingenious café-wine trict. Thousands of wines, the finest skill and gusto. Guests are seated at bar featuring small and midsize ingredients and customer cosseting. deep leather booths in the duplex plates of goodies brimming with the space lined with wine cases. Daily tastes of the Italian Riviera. Marchi’s ½ menus lists the current catch as well Partnering with Messrs. Oren www.marchirestaurant.com as serious steaks. and D’Amico in the venture is serv- 251 E. 31st St. (between Second and Beyond the fresh seafood and ice meister Robert Guarino. The Third avenues), Manhattan. eye-catching raw bar platters are trio worked together at nearby Mar- (212) 679-2494. other pleasures: innovative pastas seille. The “quiet legend” of Kips Bay has like fazzoletto—big ravioli filled Nizza’s menu, organized in nine been providing no-menu, family- with burrata and stracchino; potato categories, empowers guests to have style dining for some eight decades. pie (NYC’s best, I think) replete as little or as much as they wish.Din- with sour cream, cheese, eggs and ers might choose from nibbles of Tommaso ½ onion; as well as delicious mousse such antipasti as crispy baked chick- www.tommasoinbrooklyn.com and humongous fruit pies. pea-flour pancakes,called socca,or go 1464 86th St. (between 14th and for a salad of bibb, gorgonzola, ap- 15th avenues), Dyker Heights, ZERO OTTO NOVE ½ ples and walnuts. Brooklyn. (718) 236-9883. 2357 Arthur Ave. (between Crescent The soup, salumi, panini, cheese Tommaso Verdillo’s soul-satisfying Avenue and East 186th Street), and dessert categories also contain cooking and operatic tenor contin- the Bronx many tasty selections. ues to pull in a large crowd. (718) 220-1027 Dining at Nizza involves taking PRICE RANGE $15.95-$24.95 a modified tapas approach and Dean’s Pizzeria Restaurant HOURS Lunch and dinner, knowing that an exceptional taste Tues.-Sun. guide is at the helm.That said,a few 250 W. 85th St. (east of Broadway), oberto paciullo, the lion dishes in the “specialties” section ar- Manhattan. (212) 875-1100. Round of Arthur Avenue restaura- rive in portions that are almost the or rectangular, the pies are fine, Rteurs, salutes his hometown size of an entrée. served in what was once an Art in a wonderfully atmospheric recre- Deco hotel ballroom. Appealing ation of Salerno. The name repre- COMMENTS? [email protected] salads and meat and fish dishes, too.

roger hagadone sents its area code, 089. SALERNO CALLING: Zero Otto Nove celebrates the food—and area code—of southern Italy. Mr. Paciullo’s cuisine is true southern Italian peasant food. In addition to flavorful thin-crusted pizza from an open, wood-burning A MATTER OF oven, he produces exceptional Perspective mixed grills of wild boar, venison A welcome and bison sausages. Baby octopus is sautéed, then simmered in red sauce until fork tender. White-bean risotto is a per- Italian quartet fect foil for pork osso buco and other fine meats from Sal Biancardi’s ello arpaia of Scarlatti, legendary butcher shop across the Restaurant veterans’ Cellini and Bellini fame adds street. new spots offer Lanother musician-inspired ti- Stealing time from his mainstay tle to his family’s hospitality roster. Roberto’s, a short walk away, Mr. classical favorites Fiorini is a handsome, comfortable Paciullo built much of Zero Otto East Sider with a highly profession- Nove himself, a feat in which he and a few twists al team in front and a kitchen doing takes justifiable pride. Italian classics mostly by the book. from the italian enclave of Any modest deviations are made to M&K takes a closer look. Arthur Avenue in the Bronx to elevate the form. Manhattan’s theater district, Car- Chef Ermino Conti sends forth As certified public accountants and business consultants, negie Hall area and East Side,estab- perfect spiedini alla Romana; risotto we understand that the difference is in the details. From number - lished restaurateurs are expanding dappled with speck, porcini and es- crunching to strategic business planning, M&K looks at your their empires—and the results are carole; and golosi, potato-and- impressive. spinach dumplings napped in four- business and financial situation from every point of view. It’s not just Here are four newbies to explore. cheese sauce melt in the mouth. about the bottom line, but how you get there. That’s the M&K Way. All are lively to loud,take plastic and Baked swordfish Livornese style, don’t require jackets. Plan to make grilled branzino and Dover sole reservations at any member of this meunière are among seafood stars. quartet, whose substantial stocks of Save room for feather-light ricotta well-priced wines complement cheesecake made from an Arpaia pleasing food. family recipe or for delicate baba per- fumed with rum. I would intensify ZERO OTTO NOVE, in the Bronx, Marcum & Kliegman LLP FIORINI ½ that bouquet with more of the spirit. features thin-crusted pizza. 206 E. 56th St. Certified Public Accountants & Consultants NEW YORK (between Second and Third avenues) SHELLY’S TRADIZIONALE = Outstanding Can you guess (212) 308-0830 ½ = Excellent MELVILLE www.MKLLP.com 800.921.0777 what this image is? PRICE RANGE $21-$39 41 W. 57th St. (between Fifth and = Very good GREENWICH Email your answer to: HOURS Lunch, Mon.-Fri., Dinner, Sixth avenues) = Good GRAND CAYMAN Mon.-Sat. (212) 245-2422 [email protected].

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