david neff VOL. XXIX,NO.7 ready forChapter 2 ready success story. He’s a communitybanking ForkBancorp North John Kanasmade NEWSPAPER ELECTRONIC EDITION CRAIN’S okwho’s back Look WWW.CRAINSNEWYORK.COM E OKBUSINESS YORK NEW BY AARON ELSTEIN BY AARON the financial crisis hitisnowthe financialcrisis carrying for awhopping$14billionjustbefore Forkecutive whosoldNorth Bancorp returning to .The ex- years,is bankerovercommunity thepast30 thecity’s mostsuccessful John Kanas, the rules for illegal housing rules the Plus: bending strings. loosen purse Lenders REPORT REAL ESTATE home turf of Long Island. As part of Aspart Island. ofLong home turf plusanother onhis the coming weeks, its firstthree branchesinManhattan in2009. sale price thathebought for afire- thrift Florida afailed the bannerofBankUnitedInc., Mr.Kanas’new bankisslatedtoopen Mr.Kanas’new ® PAGE 15 comeback. vehicle fora York banker’s is theNew thrift A failedFlorida JOHN KANAS: See KANAS onPage28 See KANAS operas end operas know how most OPERA TROUBLED TALE OFA And you office leases office top CoStar’s THE LIST amid roadblocks on innovatingrides Software makersbail pileup stall in taxi E-hail apps hn:the prospect taxi in- of lucrative thing: byone ousine CommissionlastApril to themeetingwith Taxi andLim- one-manshops. scrappy and well-funded startups as did and Microsoft Citi—showed up, IBM, Fortune 500s— district. and the Flatiron London Valley from and Tel Aviv, from Silicon came They BY ALIELKIN in Sandy-hitarea aim forcriticalmass Government grants downtown migration A tech $250,000, grantsfrom $10,000to ceive city re- andwill south ofChambersStreet have submittedplanstoopenoffices field, inthetechnology firms,mostly ty the nexthottechneighborhood.Twen- become companies,could and dynamic thenightlifetoattractyoung lacking office-towera sterile environment longthoughtofas Manhattan, Lower BY ANNIEKARNI DIGITAL P. 29 Fifty orsocompanieswere drawn Fifty The city’s Economic Development Crain’s FEBRUARY 18-24, 2013 PRICE:$3.00 NY PAGE 16 has learned. See TECHonPage26 See TAXI onPage26 3, 4 PAGES NEWS: TECH NYC MORE EDITOR’S NOTE

High anxiety FYICRAINSNEWYORK.COM An irate Michael Bloomberg was on the phone with my publisher, complaining about a story and For NYC, one airline wanting to speak with no less than Rance Crain.This was back in 1998, likely beats two well before the media mogul had ess looks like it may be publicly declared his City Hall more for New York in the newsbloomberg ambitions. I was the editor of wake of last week’s announced merger of American Airlines and US Airways.The benefits Glenn Coleman InvestmentNews, a startup at Crain L will include more destinations for New York-area customers, more capital that can be used to Communications, and what had ticked off Mr. Bloomberg was not the mostly positive expand or modernize airport facilities and more job security for the 900 workers the two carriers article on his booming financial news service for have in the metro area, according to company officials and airline consultants. professional stock and bond traders but its first few The merger will create the world’s largest airline. It will give American an advantage in attracting sentences. We had started the story by noting he had much-coveted New York business travelers eager to earn frequent-flier miles.The new company, recently begun charging media outlets around the which will retain the American name, will offer 297 daily departures from area country for their once-free Bloomberg terminal airports. American, the larger of the two in New York, currently offers 213 daily departures. service, then cheekily likened him to the James Bond “Our network just grew significantly when you look at the two carriers combined,” said Tim villain Mr. Big, whose plan for world domination Ahern, of New York and international for American. “[We] now have a significant centered on hooking the masses on free heroin and presence in the East Coast market.” then charging for their fix. A Charlie Brown-ish “Mwa American’s customers will be able to access Southern cities more easily from US Airways’ hubs mwa! Mwa mwa, mwa mwa!” was all I could detect of in Philadelphia and Charlotte, N.C., as well as the shuttles to Washington and Boston. US the phone discussion across the room. His biggest Airways customers, meanwhile, will be able to take advantage of American’s international concern, I later learned: All sorts of negative ads might destinations and presence in Chicago and Dallas.The merger may also give momentum to the flood the airwaves if he ever ran for mayor and the expansion of American’s Terminal 8 at JFK airport. —dan rivoli opposition’s researchers dug up an old Crain story that called Mike Bloomberg a drug dealer. So much for BLOOMBERG’S FINAL AGENDA. With last month. Now their boss, General being cheeky with this guy, I thought. Yet there he was barely more than 300 days remaining Electric Co., is following suit. The HOORAY! last week at ’s brand-new Barclays Center, in his third term, Mayor Michael company is selling its 49% stake in P-TECH, an “early- delivering his 12th State of the City address. What Mr. Bloomberg still has a few things left NBCUniversal to Philadephia- college high school” Bloomberg had predicted about himself had come to on his to-do list. In his final State of based Comcast Corp., which already in Brooklyn the City address, delivered at Brook- owns 51%, for $16.7 billion. As part specializing in pass. “Over the past 11 years,” he said, “we have beaten lyn’s Barclays Center Thursday, he information of the deal, Comcast will buy technology, gets the odds and the obstructionists, over and over again, said he would work with the City NBCUniversal’s prized office space a shout-out from not just here in Brooklyn but in every neighborhood in Council to ban plastic-foam food at the landmarked 30 Rockefeller President packaging from stores and restau- Plaza and CNBC’s New Jersey head- Barack Obama the city.”True that, Mr. Mayor. But I must admit: I in his State of started feeling cheeky again when you said the NYPD rants. He also unveiled plans to in- quarters for $1.4 billion. … CUOMO the Union STILL MULLING GAS. will no longer arrest most folks caught possessing less crease the city’s wireless Internet con- After months of speech. nectivity, increase tourism, double weighing a decision on fracking— newsbloomberg than an ounce of marijuana. I doubt your enemies will recycling, open more charter schools the controversial process of extract- OY VEY! run ads against that one anytime soon. and complete long-gestating infra- ing natural gas from rock deep under- structure projects like the third water ground—Gov. Andrew Cuomo is tunnel. Whew! He’ll also merely again asking for more time.Turns out ticket those arrested for having small that the Department of Health needs THIS WEEK IN CRAIN’S amounts of marijua- to complete a key na. … TIME INC. MAY ‘Don’t bet study on the prac- DIGITAL NY ------1 TURN PAGE. Ameri- tice’s safety. … RENT ca’s biggest magazine RELIEF. IN THE BOROUGHS------3 your lunch Rents aren’t TIFFANY IS SUING Costco for selling fake publisher may shed exactly cheap in Tiffany engagement rings. IN THE MARKETS------4 all but its three core money on that Manhattan, but the THE INSIDER ------6 titles (Time, Sports Il- one’ good news is that for lustrated and For- —Cardinal Timothy the past five months profits, to $130 million, in the quar- CORPORATE LADDER------10 tune). The idea being Dolan, the archbishop of in a row, they have ter ended Dec. 29. Kors’ shares are OPINION ------12 explored is to fold in New York, on whether he been slipping, ac- also hot sellers, up 70% in the past such names as People, would be in the running for cording to a report by year. … HIGH LINE HERO EXITS. Four- GREG DAVID------13 Real Simple and pope after Benedict XVI’s residential brokerage teen years after co-founding Friends SMALL BUSINESS------14 InStyle with the resignation Citi Habitats. The of the High Line,43-year-old Robert glossies produced by average monthly rent Hammond is leaving to try some- REPORT: REAL ESTATE------15 Des Moines, Iowa-based Meredith, hit $3,211 in January, down 4.2% thing else.He leaves behind an inter- THE LIST ------16 creating a new publicly held compa- from a year earlier,and the lowest lev- national phenomenon that draws 4.4 ny.Around the world,Time Inc.puts el in nearly two years. … KORS million visitors to a sliver of the city CLASSIFIEDS ------20 BUSINESS PEOPLE out 93 magazines. Meredith’s mar- STRUTS ITS STUFF. High-end design- most locals used to avoid. The group WWF scion Shane FOR THE RECORD------23 quee titles include Better Homes and er Michael Kors didn’t just make has already raised $81 million of the Gardens and Family Circle. … COM- strides on the runway last week dur- $121 million needed to complete the McMahon has switched gears NEW YORK, NEW YORK ------29 to launch the first nationwide CAST CHANNELS GE. Jack Donaghy ing Fashion Week.His Michael Kors third and final section of the park. video-on-demand platform SOURCE SNACK------30 and his whole 30 Rock crew signed off Holdings Ltd. reported a tripling in —nazish dholakia in China. P. 8 OUT AND ABOUT ------31 CORRECTIONS (SEE P. 28) STORIES TO WATCH THIS WEEK vol. xxix, no. 7, february 18, 2013—Crain’s New York Business (issn 8756-789x) is published weekly, except for double issues the weeks of July Fourth, Labor Day and Christmas, by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals postage paid at Feb. 18: Deadline Feb. 19: Barnes Feb. 22: Fifth Feb. 24: The 85th New York, N.Y., and additional mailing offices. Postmaster: Send address changes to: Crain’s to submit & Noble Inc. annual New York Academy New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (877) 824-9379. Fax (313) 446-6777.$3.00 a copy, $99.95 one prototype idea posts fiscal City Beer Awards year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2013 by Crain Communications Inc. All rights reserved. for new NYC 2Q 2013 Week pay-phone design earnings. begins.

2 | Crain’s New York Business | February 18, 2013 IN THE BOROUGHS Cape Town BROOKLYN Nearly every designer walked some version of the billowy Navy Yard item down Fashion Week runways an anchor

BY ADRIANNE PASQUARELLI for jobs

Superman and Batman might’ve been on to Once-forbidding something. Capes flourished at New York Fash- ion Week, which ended last Thursday, as nearly complex opens doors every designer walked some version of the to the neighborhood billowy item down the runway. Oversize, menswear-inspired outerwear, like cocoon coats and roomy motorcycle BY KERRY MURTHA jackets worn over the ᮤ NO LITTLE shoulders in a cape- For decades, most residents of RED RIDING like iteration, contin- Brooklyn’s Clinton Hill and Fort ued the fashion trend. Greene had no idea what,if anything, HOOD “The cape has been went on in the Brooklyn Navy Yard, gaining traction,” said the forbidding, gated complex that A GROWN-UP, elegant cape by Vera Wang steers Sharon Graubard, stretches for nearly 20 blocks along away from eccentric fairy senior vice president Flushing Avenue on the neighbor- tales into a more and fashion director at hoods’northern edge.Fewer still had wearable, practical realm. trend forecaster Style- ever entered the place. sight. “It’s on the run- Today, all that is changing. Just way, on the runway, on ask Loretta Swindell, a trained con- the runway, but now it’s going to be on the peo- struction worker.On her first visit to ple, because it’s getting more approachable and the complex last year, she walked more wearable.” into the yard’s employment center

Such large looks and walked out with a job working could also mean large ᮤ on a demolition project within the bucks at a time when WHAT LIES complex. For her, the importance of many retailers continue BENEATH the city-owned facility has been to struggle for sales. By crystal-clear ever since. pushing oversize outer- THE EXTRA BULK of a “The Navy Yard means jobs for wear, designers create roomy Patrik Ervell coat this community,” said the 49-year- or cape allows for more an opportunity to pro- layering of items—which old Ms. Swindell, who is one of mote more items for means more retail sales. 1,600 area residents the employ- shoppers to layer under- ment center has placed in jobs over neath. That new cape the past decade—122 last year can easily fit over a tailored blazer, for example, so alone.Finding jobs for people is only retailers could rake in twice the number of sales. one way the Brooklyn Navy Yard The industry needs a fresh reason to persuade Development Corp., the not-for- shoppers to buy a new coat. In that clothing profit managing the city-owned See CAPE on Page 26 See NAVY YARD on Page 27

DIGITAL NY STATS AND THE CITY A paranoia-industrial complex GREENING OUR TRASH: Mayor Michael Bloomberg pledged to put the kibosh on plastic-foam food containers that hang around for eons. emerges from the shadows 5% 15.4% TONS20K OF plastic foam PLASTIC CONTENT in NYC’S reason the cybersecurity industry is estimated to be in typical plastic foam. CURBSIDE and As big banks, media becoming a land of opportunity for NYC’s waste annually The rest is air. containerized providers and investors. Last week, recycling rate in wise up to cyber 2012, down threat, security firms President Barack Obama signed an $20 from 16.5% in executive order aimed at setting PER-TON COST 2005 try to get noticed cyber-defense standards amid re- that plastic foam ports of Chinese hackers attacking adds to recycling U.S.government computers and the in NYC because it BY MATTHEW FLAMM systems of . has to be

istock Attacks of all kinds are becoming removed The most dangerous bank robbers more pervasive. Like it or not, the these days never pull out a gun.They ‘Potential costs largest corporations in New York— friend you on Facebook. financial institutions, utilities and 63% ... are rising PORTION OF “This is somebody who says, ‘I media companies—will all be spend- Seamless.com would like to breach and infect the exponentially’ ing more on cybersecurity in 2013. eateries nationwide desktop of the [bank] CFO,’ ” said “The potential costs of those at- offering green order Marc van Zadelhoff, vice president tacks are rising exponentially,” said option—sans plastic of strategy for IBM’s security sys- Manish Thakur, managing partner utensils, napkins tems division. at Manhattan-based investment Sources: Seamless.com, NYC Mayor’s Office, EarthResource.org, NYC Sanitation Dept. Once an infected link is firm Hudson Fairfax Group, who clicked—presto!—a crook is inside These are the kinds of scenarios will be chairing a conference on ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY the executive’s computer,and before that keep chief information security private-equity opportunities in long, the bank’s. officers awake at night—and one See CYBERSECURITY on Page 28

February 18, 2013 | Crain’s New York Business | 3 DIGITAL NY IN THE M&A deals show solid growth MARKETS for New York’s tech industry by Aaron Elstein City ranks second in GOOD TIMES FOR TECH deal volume in 2012, Number of M&A deals for privately held tech firms in 2012 averaging $83M 226 100 62 2,357 BY MATTHEW FLAMM Silicon Valley New York Boston-Cambridge Total U.S.

As if any more evidence were need- Value of M&A deals ed that New York’s tech industry had $21.5B $112B a good 2012, a new report on last year’s mergers and acquisitions says there were 100 deals for privately held tech companies in the city,with their value adding up to $8.3 billion. $8.3B

The tally leaves New York in its newsbloomberg familiar second-place spot after $1.7B California’s Silicon Valley—where 226 deals totaled $21.5 billion—but Silicon Valley New York Boston-Cambridge Total U.S. Gotham comes out miles ahead of Source: PrivCo’s 2012 Private Tech Company M&A Report Chase investors its rival to the north. The Boston-Cambridge corridor York City has arrived, and that we erage deal value of $83 million was a is in third place with just $1.7 billion can create private technology com- dramatic step up from previous ask: Who’s that? from 62 deals, according to PrivCo. panies worth being acquired,” said years, when the average was in the The research firm released its Private Sam Hamadeh,CEO of PrivCo.He $30 million to $40 million range. Tech Company M&A Report for added that New York companies’av- or many years, a JPMorgan Chase & Co. hallmark was 2012 to its clients last week. Big year unusually stable management for a giant bank. Chief Last year was a big year all Executive (above) led a team of Dramatic step up ‘It’s clearly a around. Mr. Hamadeh said it was F The report’s rankings are rough- the most active tech M&A market lieutenants, many of whom he’d worked with for years. ly similar to those in the Tech M&A testament that in the U.S. since PrivCo began But after the 2012 “London whale” trading debacle, Mr. Activity Report released last month tracking the sector in 2009, with Dimon promised big changes—and has followed through: by CB Insights, though that one put New York City 2,357 deals and estimated deal vol- Just about every top executive expected to address share- Texas in third place and Massachu- ume of $112 billion. The dollar fig- setts in fourth.Either way,New York has arrived’ ure marked a 22% spike from the holders at the bank’s annual Investor Day next week will be is posting solid results. prior year and was almost double the new to the audience or in a different role from last year. “It’s clearly a testament that New $64 billion in deals in 2009. Ⅲ “In most years, JPMorgan aver- of card, merchant services and auto aged two new faces (or familiar finance, is now CEO for consumer faces in new roles),” observed Bar- and community banking. clays Capital analyst Jason Goldberg Investors will be paying closest in a client note last week. “For the attention at next week’s conference 2013 gala, we expect to see a great to two new faces: co-COO Matthew deal more changes.” Zames and Chief Financial Officer Mr. Goldberg added that the Marianne Lake. Both are little known management changes are one fac- to investors but certainly rising pow- tor weighing on the bank’s stock ers within the bank. It isn’t clear if price. Although up by 23% since Mr.Zames will speak—a JPMorgan the London whale news first sur- spokeswoman wouldn’t comment— faced, the shares have lagged by a but Ms. Lake almost surely will. good distance those of perennial Conferences like JPMorgan’s sad sacks and Bank of provide a sense of which issues and America during that period. executives the bank thinks are most Consider its operating commit- important, what lines of business it Convenient access to major business hubs. tee. Eight of the 14 members at last wants to highlight and which it year’s start have left or been reas- wishes investors would ignore. Subways & Highways just signed. The departed include Ina Mr. Dimon’s candid remarks at blocks away. Drew, head of the chief investment the start and end of these shindigs office where the whale loss occurred; are widely followed. But this year, COMMERCIAL UNITS chief ; the executives who investors are WITH FLEXIBLE SPACE. and Chief Risk Officer Barry Zubrow. perhaps most eager to hear are two PREBUILT/BUILT TO SUIT Even Mr. Zubrow’s replacement, almost complete unknowns. They John Hogan, has been replaced—at are Craig Delany, who in September www.bushterminal.com least temporarily—by Ashley Bacon was named head of the CIO to re- while Mr. Hogan is on leave. place Ms. Drew, and Ms. Bacon, Committee holdovers in new the bank’s third risk chief in a year. www.bushterminal.com jobs include Frank Bisignano,the for- “The CRO position, despite its WHERE BUSINESS LIVES mer administration chief and importance,has historically not pre- mortgage banking CEO who was sented at this event,” Mr. Goldberg Industrial, Offi ce, Creative, promoted to co-chief operating of- drilyobserved.“We wonder if recent ficer. Gordon Smith, the former head CIO-related events change that.” Ⅲ Warehouse/Distribution, Manufacturing, Retail, TOTAL NUMBER of investment banks and and Technology. law firms hired to advise on the $23 billion 12 sale last week of H.J. Heinz to a group of investors including Warren Buffett. Interestingly, absent from this crowded table were Goldman Sachs and Morgan 866.361.0769 [email protected] 882 Third Avenue, Brooklyn Stanley, two firms that typically have a role in arranging the largest corporate mergers.

4 | Crain’s New York Business | February 18, 2013 DON’T SETTLE. Stay connected with America’s Largest Push to Talk coverage area.

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Largest claim based on comparison of carriers’ owned/operated networks. Network details & coverage maps at vzw.com. © 2013 Verizon Wireless. F7962A THE Labor strife in mayor’s race INSIDER by Andrew J. Hawkins There are some 35 members of main rivals—Public Advocate Bill Unions aim to unite the CLC board, including all of the de Blasio, former Comptroller Bill behind a single city’s biggest labor players, such as Thompson and Comptroller John the United Federation of Teachers, Liu—cannot now roll out their own candidate, but District Council 37, building serv- early endorsements to show they are some jump the gun ice workers’ union 32BJ and health gathering strength, which might care workers’ union 1199 SEIU. If blunt Ms. Quinn’s advantage in the the agreement is kept, they will stay polls. It’s also possible that the two BY CHRIS BRAGG on the sidelines for the next two and unions’ defiance of the resolution a half months. The Democratic could lead others to break the deal City labor unions have agreed to de- primary is currently scheduled for and endorse one of the speaker’s lay endorsements until unusually September. rivals. late in this year’s mayoral election, The strategy behind the resolu- potentially shifting the dynamics of tion is to stop individual unions Pressure on de Blasio the Democratic primary contest. from making endorsements until “If they still hold to May, then The move is intended to avoid hav- the CLC does, maximizing the um- Quinn has two and a half months to ing union endorsements splintered brella group’s impact gain steam. If this among several candidates—a goal and potentially unify- breaks the deal, it’s office mayor’s nyc that is already proving elusive. ing labor’s overall ‘If this game on,” said one The executive board of the Cen- strategy in the may- operative. Speeches signal City Hall shift tral Labor Council, an umbrella or’s race, rather than breaks the The three unions group of local unions, voted nearly letting unions go in that have endorsed here were two State of the City speeches last week, unanimously last month for a reso- different directions deal, it’s are members of the one by a mayor looking to preserve his legacy, another lution stating that its members early in the cam- Working Families by a potential successor trying to fashion her own. would not make endorsements in paign. CLC Presi- game on,’ an Party. Ms. Quinn has T the Democratic mayoral primary dent Vincent Al- now lined up about The addresses bore few similarities, other than the until May, according to labor varez, who was insider said 15% of the party’s obligatory references to New York’s being “great.” Mayor sources who attended the meeting. elected in June 2011, weighted endorse- Michael Bloomberg (above) boasted of his administration’s has pushed for more ment vote. She needs high points over the past 11 years—he literally hung them Three endorse early unity from organized 60% to land its covet- But there have already been three labor in the city. ed endorsement and from the rafters of the Barclays Center—while City Council endorsements in the race. Grocery- “It’s an effort by ballot line this year. Speaker Christine Quinn, at home in the council chambers, store workers’ union UFCW Local labor to be more collaborative and WFP support is key to Mr. de emphasized her efforts to help average New Yorkers. 1500 endorsed City Council Speak- have a more coherent process,” said Blasio’s campaign, however, and the er Christine Quinn before the CLC one labor source. “The mayor’s race public advocate needs backing from The mayor mentioned the mid- demn others to death by doing so. passed its resolution, while the Re- is full of candidates with deep ties to a high percentage of the WFP’s un- dle class just once in his remarks; Alluding to the teachers’union and tail, Wholesale and Department labor, and the effort is to make sure committed member unions and or- the speaker did so 44 times. He parent activists, he accused those Store Union and the Mason Ten- [the CLC endorsement decision] is ganizations in order to get the pow- took the podium as Brooklyn Nets who object to letting charter ders District Council endorsed Ms. as democratic as possible.” erful party’s nod. That could dancers gyrated; she was intro- schools share other public schools’ Quinn in defiance of the measure, One political operative speculat- increase pressure on pro-de Blasio duced by her 86-year-old father, a space of trying to “lock out” and sparking predictions that others ed that a delay in endorsements unions to announce their support former union electrical worker “deny resources” to children. would follow. could help Ms. Quinn, because her soon. Ⅲ from Queens. In contrast, Ms. Quinn was ge- Mr. Bloomberg, who alluded nial and autobiographical, recol- several times to his lack of confi- lecting her grandfather’s emigra- dence in how the city will be run af- tion here from Ireland. While the ter he leaves office, unveiled no mayor tripped over numerous grand schemes, instead launching words, even flubbing several at- proposals that he could bring back tempts to pronounce Coney Is- to port be- land’s Steeplechase Plaza (he ulti- fore his term mately settled on “Staplechase”), ends Dec. the council leader, whose thunder- 31. He said ing laugh could scare off a flock of he would birds, was both smooth and dy- push to ban namic. She moderated the volume plastic-foam and shrillness that have character- food packag- ized her public speaking in the past.

buck ennis ing from The fulcrum of her address,two Christine Quinn stores and days before the mayor’s, was in- restaurants, come equality, a running theme in ease the consequences of low-level the Democratic primary in which marijuana arrests, increase the city’s early polling has marked her as the wireless Internet connectivity,boost front-runner. But rather than pro- tourism, double recycling, open pose new taxes on the wealthy, as more charter schools and complete two of her Democratic rivals did, long-gestating infrastructure Ms.Quinn,who is courting real es- projects. tate and other business support,in- He rejected calls to delay a re- stead called for new borrowing and zoning of the area around Grand budget reallocations. Central Terminal, saying it could “We face an affordability crisis be sabotaged by politics after he in our city, and it cuts right at the departs. He indicated that plans to fabric of New York,” she said. By revamp the South Street Seaport, building middle-class housing and erect a soccer stadium in Queens spending more to help cash- and create a waterfront park in strapped families, the government Greenpoint, Brooklyn, would get can bring wealth distribution more done this year. into balance, she added. At times defiant and scolding, Whether she will get a chance to the mayor charged that critics of implement that vision and dispel the stop-and-frisk policing would not mayor’s fears of post-Bloomberg sacrifice their own lives to scale it New York will be decided in the next back and therefore should not con- eight months. Ⅲ

Crain’s Insider, our award-winning politics newsletter, is now a blog. Read it every day at www.crainsnewyork.com/insider

6 | Crain’s New York Business | February 18, 2013 We’re proud to welcome Sam Giarrusso and his team of highly experienced real estate lenders back to the Big Apple.

Give him a call at: 917-374-3400

Coming to NYC | BankUnited.com BUSINESS $865M Fashion Week’s economic impact, the same as in ’12 PEOPLE Source: NYC Economic Development Corp.

EXECUTIVE MOVES

Greater New York City Affiliate of Susan G. Komen for the Cure: Linda Tantawi, 49, joined the nonprofit as chief executive. She was previously executive director at the CJ Foundation for SIDS. Kroll Advisory Solutions: Garth Williams, 44, joined the media company as chief financial officer. He was previously vice president and controller at American Tower Corp. Magisto: Reid Genauer, 40, joined the mobile movie creation and sharing company as chief marketing officer. He was previously vice president and head of marketing at Bitbop, Fox Mobile Group. Liazon Corp.: David Finkel, 49, joined the insurance company as . He was previously chief operating officer at Inovalon. Aereo Inc.: Alex Moulle-Berteaux, 41, joined the online television technology platform as chief commercial officer. He was previously global head of marketing and public relations for Rockstar Games. Ruckus Marketing: Daniel Millman, 29, was promoted to chief relationship SHANE McMAHON, officer, a newly created position. He in his Union Square office, still asks his was previously director of business famous father, Vince, development. for business advice. Cerebral Palsy Associations of New York State: David Seay, 61, was promoted to chief legal officer and karjean levinekarjean executive vice president. He GOTHAM GIGS was previously general counsel. Stribling & Associates: Charles Russell Jr., 49, joined the real estate firm as executive vice president and director of marketing and new business development. He was previously vice Shane O Mac goes to China president at Douglas Elliman Developments. Sills Cummis & Gross: Steven Rothman, 60, joined the law firm as a member. WWE veteran says time is right for video on demand He was previously a U.S. congressman in New Jersey’s Ninth Congressional Shane McMahon grew up in the family to a country that purchases $6 billion annually in District. Little, Brown and Co.: Reagan Arthur, ‘That’s why entertainment business. At 6, he began working pirated DVDs. Mr. McMahon has already 48, was promoted to senior vice as a ring boy. Later, he stepped over the ropes and signed agreements for 18.2 million homes in president and publisher of the media I got company, effective April 1. She was into the World Wrestling Federation as a referee. China and hopes to expand to 30 million by previously editorial director of Reagan into this Eventually, he became a wrestler whose shifting year’s end. ¶ “The demographics, the demand, Arthur Books, a Little, Brown imprint. allegiances and fancy footwork provided the the relationships were all in the right place,” Mr. Penton Media Inc.: Joe Territo, 44, business joined as senior vice president, content plotlines that helped take the company now McMahon said. “That’s what made me leave: the and user engagement, a newly created ... I’ve known as WWE global. ¶ But in 2010, Mr. gold ticket.” ¶ The company has distribution position. He was previously executive director, content, at Advance Digital. lived it’ McMahon, 43, ditched his signature “Shane O agreements with the Chinese government, cable Amalgamated Bank: Mac” baseball jersey to become CEO of You On providers and Hollywood studios and plans to John A. Romano, 56, joined as executive Demand, a cable platform with offices in Union offer a kids channel. ¶ Mr. McMahon’s mother, vice president of Square and Beijing. ¶ “It’s the same business,” Linda, twice lost races for U.S. Senate in operations. He was Mr. McMahon said. “It’s marketing. It’s Connecticut, but Mr. McMahon has no interest previously chief operating officer and promotion.” ¶ His major role with the WWE in politics. ¶ He still asks his famous father for president of People’s was actually on the business side, working with advice. “I’m no fool,” the younger McMahon United Bank’s Long Island division. his father, Vince, to spread wrestling’s pay-per- said. “The man is one of the greatest promoters Robert O’Brien, 45, joined as senior vice view offerings.This month, his new company of all time, in my view. And that’s why I president and head of the public finance unit. He was previously head of the launched the first nationwide video-on-demand understand this business and why it’s going to public finance group at LBBW Bank. platform in China, offering buy-at-home movies succeed: I’ve lived it.” —chris bragg See EXECUTIVE MOVES on Page 10

8 | Crain’s New York Business | February 18, 2013 Rebuilding NY

Photo: Buck Ennis, Conference Crain’s New York Business Exploring Ways to Help Move New York CONFERENCE AGENDA: Opening Keynote: Forward Post-Superstorm Sandy. Howard Glaser, Director of State Operations and Senior Policy Advisor to the Governor, New York State Date » Thursday, April 4, 2013 Executive Chamber Time » 8:00 am – 12:00 pm POWER SESSIONS: The Essentials: Kevin Burke, Chairman, President and CEO, Place » Sheraton New York Times Square Consolidated Edison, Inc. Thomas Prendergast, Interim Executive Director at Cost » $229* for individual ticket(s) the Metropolitan Transportation Authority and President, New York City Transit $2,290* for table(s) of ten Margarette Purvis, President & CEO, *Early bird pricing ends on Feb 21* Food Bank for New York City Jonathan F. P. Rose, President, Jonathan Rose Companies You must be pre-registered to attend this event. No refunds permitted. For more information, Mitch Rudin, President & CEO, U.S. Commercial call the Events Hotline at 212-210-0739 or email [email protected] Operations, Brookfield Office Properties Inc. The Next Time: CHARTING THE REBUILDING AGENDA Dr. William J. Fritz, Internationally Renowned Geologist and Author; CUNY College of Staten Island » Where should the money go and how should it Interim President best be spent and leveraged? The Rebuilding: » What lessons have we learned for the next storm? Jay Badame, President and COO of Tishman Construction, an AECOM Company, for New York, » What are the greatest challenges New York faces New Jersey & Pennsylvania Andrew Rasiej, Chairman New York Tech Meetup, as we look ahead to the future? Founder of Personal Democracy Media Jed Walentas, Principal, Two Trees Management Co. For sponsorship opportunities, please contact Trish Henry at 212-210-0711 Carl Weisbrod, Partner, HR&A Advisors, Inc. or [email protected] Additional panelists to be confirmed. Register » crainsnewyork.com/events-rebuildingny CORPORATE LADDER EXECUTIVE MOVES Continued from Page 8 AN ADVOCATE FOR THOSE WHO NEED ONE Town Residential: Claudia Saez-Fromm, MARK HURWITZ brings years of real estate development and government policy experience to his new job as president and chief 41, joined the real executive of Palladia Inc., a nonprofit aiding families and individuals struggling with substance abuse, homelessness, mental estate firm as senior illness and the transition from incarceration. vice president and licensed salesperson. “Mark has great intellectual curiosity,” said Sandra Stark, chairman of Palladia, who was part of the committee to select Mr. She was previously Hurwitz from a large national pool of candidates. The 49-year-old has a bachelor’s in economics from Harvard and a law degree chief operations from Columbia. He sees himself, more than anything else, as an advocate. “I am interested in programs to prevent officer at Mark David homelessness, that help guide people to aid they are entitled to but don’t know how to get,” he said. & Co. Mr. Hurwitz was the first director of the Urban Justice Center’s Mental Health Project and served as a deputy commissioner Dan Marrello, 33, joined as leasing in the city’s Department of Homeless Services and later as deputy director at Project Renewal. He assisted in the 2005 director. He was previously senior agreement between the city and the state to create 9,000 units of supportive housing for disabled homeless people managing director at Citi Habitats. Marvin Traub Associates: Geoffrey Lurie, in the city over 10 years. He will oversee Palladia’s continuing development of Fox Point, a LEED-silver certified 67, joined the business development affordable-housing building in the Bronx. —EVA SAVIANO firm as managing director of Traub special situations. He was previously at Geoffrey D. Lurie & Associates, which he founded. Advertisement Chris West, 37, joined as managing director and partner. He was previously at CS West International, which he founded. Proviti: Scott Moritz, 51, joined the Robert and Ita Klein Charitable Foundation Donates $1.5 Million consulting firm as managing director in its internal audit and financial advisory To Support Hurricane Sandy Relief Efforts group. He was previously managing director, global investigations and compliance, at Navigant Consulting. Gaia Real Estate Investments: Laurance Cleveland, Ohio, February 1, 2013 – The Community Assistance Special Fund (CASF), created to Kaufman, 44, joined the real estate support rebuilding efforts for residents of the South Shore of Long Island and Queens, New York investment firm as managing director. He was previously vice president at affected by Hurricane Sandy in October of 2012, announced today that the Robert and Ita Klein AREA Property Partners. Oppenheimer & Co.: Peter Albano, 52, Charitable Foundation has donated $1.5 million. joined the wealth management and investment-banking services firm as managing director and head of taxable David Greenblatt, administrator of the CASF said, “We are privileged to receive this generous fixed-income sales. He was previously contribution from the Robert and Ita Klein Charitable Foundation. This donation will allow us to managing director and head of institutional relationship management, help families whose homes were severely damaged during the Hurricane Sandy disaster, many of Americas, at BNP Paribas. Prosek Partners: Thomas Rozycki, 39, was whom are still displaced.” Greenblatt noted that for many homeowners and renters, insurance promoted to managing director of the corporate communications firm. He was coverage and grants from the Federal Emergency Management Agency (FEMA) have not been previously senior vice president. sufficient to allow them to get their properties and lives back together. Brian Schaffer, 36, was promoted to practice leader, transaction services. He was previously vice president. “After seeing the devastation of Hurricane Sandy first-hand, I was deeply concerned about people Knickerbocker Hotel: Jeff David, 40, joined who lost their homes and continue to suffer from this disaster,” said Robert Klein, founder and as managing director. He was previously chairman of Safeguard Properties in Valley View, Ohio. “The mission of the company I founded general manager at the is to protect and preserve properties, neighborhoods, and communities every day. We also play a Viceroy Anguilla. Legolas Media: Michael significant role to assure that properties are protected after disasters such as Hurricane Sandy,” said Hegarty, 40, joined the advertising and Klein. He added: “Consistent with Safeguard’s mission, my wife Ita and I are honored to help marketing firm as vice president, media people affected by this disaster rebuild their homes and their lives.” sales, a newly created position. He was previously director, East Coast and Midwest sales, at Netmining. CASF is a federally approved 501c (3) non-profit agency, operating under the Davis Memorial Fund, Alliance for Downtown New York: Andrew Breslau, 52, joined the nonprofit as vice which provides financial assistance to needy families and disadvantaged children. CASF has president, communications and marketing. He was previously president distributed more than $5.2 million in grants to homeowners and apartment dwellers in the South of The Nation Institute. Shore of Long Island and Queens areas. Grants are requested through comprehensive applications HLW International: Debra Cole, 53, joined the engineering and architecture firm as with on-site visits by representatives from CASF. Inquiries may be directed to the fund at client relations director of its New York office. She was previously director of [email protected]. business development at Perkins + Will’s New York office. Marcum: Jessica Hickman, 26, joined the Safeguard Properties, founded by Robert Klein in 1990 and headquartered in Valley View, Ohio, is accounting and advisory services firm as director of business development, a the largest mortgage field service company in the U.S. It inspects, protects and maintains defaulted newly created position. She was and foreclosed properties for the mortgage industry. previously investor and media relations manager at Apex Fund Services. Waller Capital Partners: Sundeep Chanana, 30, joined the investment Media contacts: bank and advisory firm as a director in its digital media practice. He was Community Assistance Special Fund: David Greenblatt, 516-302-7394. previously vice president at Sagent Advisors. Safeguard Properties: Diane Roman Fusco, director of public relations, We Are Social: Peter Fontana, 31, joined the social-media agency as research and [email protected], 800-852-8306, ext. 1213. insight director, a newly created position. He was previously data strategist at Deutsch NY. Nick Fuller, 32, joined as marketing director, a newly created position. He was previously senior director of marketing at MRY.

10 | Crain’s New York Business | February 18, 2013 Sheraton Tribeca New York Hotel: Dawn Waters, 32, joined as director of sales and marketing. He was previously marketing CRAIN’S SEEKS 2013’S TOP ENTREPRENEURS account director at Starwood Hotels of CRAIN’S NEW YORK BUSINESS SEEKS NOMINATIONS New York & New Jersey. for its annual Top Entrepreneurs awards. The six winners will Metis Group: Thomas Torrillo, 47, joined have distinguished themselves by showing a pattern of growth and innovation in their businesses and by the accounting consulting firm as audit contributing to the quality of life in their communities. partner and director of retail and Firms must be for-profits that have been in business for at least three years. They must have annual consumer products, a newly created sales of less than $100 million and be located in New York City. Companies can nominate themselves or they position. He was previously partner and can be nominated by a business contact. The entry deadline is March 15. Winners will be New York office leader of the retail and profiled in the June 3 issue. consumer products group at CohnReznick. To submit an entry, complete the entry form at www.crainsnewyork.com/features/ Robins Kaplan Miller & Ciresi: Bernard top-entrepreneurs/nominate. Persky, 68, joined the law firm as of Last year’s winners were (clockwise from top left) Matt Blumberg of Return Path, Charles Feit counsel. He was previously co-chair of of OnForce Solar, Laura Geller of Laura Geller Makeup, Clint White and Simona Tanasescu of WiT the antitrust and competition litigation Media, Joe Meyer of HopStop, and Colin McCabe and Tony Shure of Chop’t Creative Salad Co. practice at Labaton Sucharow. Have a question? Contact Contributing Editor Elaine Pofeldt at [email protected]. Kellie Lerner, 35, joined as a partner. She was previously an attorney at Labaton Sucharow. Hollis Salzman, 47, joined as a partner and co-chair of the antitrust and trade regulation group. She was previously managing chair at Labaton Sucharow. IPG Mediabrands: Gayle Troberman, 46, joined the media company as chief marketing and ideas officer. She was previously chief creative officer at Microsoft. Ernst & Young: Greg Cudahy, 49, joined the tax and advisory firm as Americas leader, performance improvement. He was previously North American operations practice leader for Accenture. Fish & Richardson: Kristen McCallion, 38, was promoted to principal at the law firm. She was previously an associate. Peckar & Abramson: Frank M. Rapoport, 62, joined the law firm as leader of its public-private partnerships practice group. He was previously chair of global A mall in the Philippines can change the infrastructure and the public-private partnerships practice group at McKenna way you look at your financial future. Long & Aldridge. Microsoft: John Piontkowski, 47, was promoted to general manager, East region, of Microsoft Advertising. He A wealthier middle class in Southeast Asia is buying American. With more discretionary was previously senior regional director. Cravath Swaine & Moore: David J. income, consumers are spending more on clothing, electronics and other categories Kappos, 51, joined the law firm as a led by Western brands. It’s part of a larger economic trend that’s shifting the role of partner. He was previously developed markets from consumer to producer.1 undersecretary of commerce and director of the U.S. Patent and Trademark Office. Speak with an HSBC Premier Relationship Advisor to see how your investments may Fox Rothschild: Leonard Budow, 57, benefit from opportunities like these before they emerge.2 joined the law firm as a partner and co- chair of its fashion law practice group. He was previously a partner at Phillips Call 866.909.1268 or visit hsbcpremierusa.com/grow Nizer. Heidrick & Struggles International Inc.: Scott Estill, 38, joined the executive search and leadership consulting firm as a partner in its financial services practice. He was previously a director at Coady Diemar Partners, which he co- HSBC Securities (USA) Inc. founded. White & Case: Daniel Dufner, 42, joined 1Source: HSBC, “The Consumer in 2050.” the law firm as a partner. He was previously a partner at Linklaters. Investments and Annuity products are provided by Registered Representatives and Insurance Agents of HSBC Securities (USA) Inc., member NYSE/FINRA/SIPC, Rosabianca & a registered Futures Commission Merchant, a wholly-owned subsidiary of HSBC Markets (USA) Inc. and an indirectly wholly-owned subsidiary of HSBC Holdings Associates: François plc. In California, HSBC Securities (USA) Inc., conducts insurance business as HSBC Securities Insurance Services. License #: 0E67746. Peyrot, 32, joined the Investments and Annuity products: law firm as a partner. He was previously of ARE NOT A BANK DEPOSIT OR ARE NOT INSURED ARE NOT GUARANTEED counsel at Garson OBLIGATION OF THE BANK OR ARE NOT FDIC INSURED BY ANY FEDERAL BY THE BANK OR ANY MAY LOSE VALUE Segal Steinmetz ANY OF ITS AFFILIATES GOVERNMENT AGENCY OF ITS AFFILIATES Fladgate. All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor. Weil Gotshal & Manges: 2 International investing involves a greater degree of risk and increased volatility that is heightened when investing in emerging or frontier markets. Foreign Allison R. Liff, 37, joined the law firm as a partner in its banking and finance securities can be subject to greater risks than U.S. investments, including currency fluctuations, less liquid trading markets, greater price volatility, political and practice group. She was previously economic instability, less publicly available information, and changes in tax or currency laws or monetary policy. managing director and associate general To qualify for an HSBC Premier relationship, you need to open a Premier checking account and maintain $100,000 in combined U.S. personal deposits and/or counsel at Goldman Sachs. investment balances. Business owners may use their commercial balances to qualify for a personal Premier relationship. A monthly maintenance fee of $50.00 will —eva saviano be incurred if minimum balance requirements are not maintained. You have up to 90 days after account opening to meet the full $100,000 balance requirement. persons (including U.S. citizens and residents) are subject to U.S. taxation on their worldwide income and may be subject to tax and other filing EXECUTIVE PROMOTIONS obligations with respect to their U.S. and non-U.S. accounts — including, for example, Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts The fastest way to get an announcement into (“FBAR”)). U.S. persons should consult a tax advisor for more information. Crain’s is to submit online. Fill out the form Deposit products in the U.S. are offered by HSBC Bank USA, N.A. Member FDIC. at www.crainsnewyork.com/section/ ©2013 HSBC Securities (USA) Inc. executive_moves. The Executive Moves column is also available online.

February 18, 2013 | Crain’s New York Business | 11 OPINION CRAIN’S NEW YORK BUSINESS Time to let a hospital go editor in chief Rance Crain publisher, vp Jill R. Kaplan

EDITORIAL hen a hospital is slated to shut, care, not jobs, and there are better ways to boost commerce. editor Glenn Coleman it’s treated like a death in the In fact, the Council of Economic Advisers has found that managing editor Jeremy Smerd deputy managing editors Valerie Block, family by employee unions, slowing the growth of health care spending would increase Erik Ipsen community members and local gross domestic product. Savings on medical care would be assistant managing editor Erik Engquist senior producer, news Elisabeth Butler Cordova politicians.They enter the first put to better use in other parts of the economy. news producer Amanda Fung two stages of grief. First, denial: Not only are hospitals poor vehicles for economic contributing editor Elaine Pofeldt columnists Greg David, Alair Townsend They insist the facts are development, they often are not ideal for delivering health crain’s health pulse editor Barbara Benson untrue—there are not hundreds of empty beds, millions of care.The industry is moving away from hospital-based care, senior reporters Theresa Agovino, dollars being lost or an industry evolution shifting services which can expose patients to overtreatment and infection, Aaron Elstein, Lisa Fickenscher, Matthew Flamm W reporters Chris Bragg, Matt Chaban, away from hospitals.Then, anger: They do a lot of yelling. toward clinic-based care, which is preventive and less costly. Daniel Geiger, Andrew J. Hawkins, Annie Karni, Adrianne Pasquarelli This familiar drama is again playing out in Brooklyn.The It’s time to stop throwing good money after bad.The state web reporter, producer Nazish Dholakia State University of New York board of trustees has voted to should entertain art director Steven Krupinski close Long Island College Hospital less than two years after proposals to repurpose deputy art director Carolyn McClain The state must staff photographer Buck Ennis its acquisition by SUNY Downstate Medical Center, a LICH. Closing it will copy desk chief Steve Noveck copy editor Thaddeus Rutkowski teaching hospital in the borough. stop throwing help the other data editor Suzanne Panara That deal was a fiscal disaster, as predictions of efficiencies Brooklyn hospitals assistant data editor Emily Laermer good money researchers Eva Saviano, Amy Stern and new revenue failed to materialize.There was little with shaky balance intern Ali Elkin synergy between the two medical centers. An expectation after bad sheets. ONLINE AND INTERACTIVE SERVICES that loads of patients would migrate to LICH from high- The public and its senior web developer, interactive cost SUNY Downstate did not come to fruition, perhaps elected representatives Chris O’Donnell because there weren’t lots of patients at Downstate in the typically equate the ADVERTISING, MARKETING AND PRODUCTION first place. And well-off, privately insured residents of closing of a hospital director of custom content Trish Henry senior account managers Irene Bar-Am, brownstone Brooklyn continued to use Manhattan with a loss of health care, but many services can be better David Harkey, Jill Bottomley Kunkes, Courtney McCombs, Suzanne Wilson hospitals. Why anyone thought LICH would suddenly delivered in other settings. If all of Brooklyn’s struggling sales coordinator Danielle Wiener become appealing to them is baffling. hospitals remain open, red ink will overwhelm them.That newsletter product manager Alexis Sinclair credit Todd J. Masura (313-446-6097) It is true that the hospital brings people and money into wouldn’t be good for the borough’s economy or its patients. director of audience & content the neighborhood, and that adjacent businesses will take a The state should move forward with its plan so those who partnership development Michael O’Connor senior marketing manager hit if it closes. But the point of hospitals is to provide health are grieving can advance to the final stage: acceptance. Catherine Schutten director of conferences & events Courtney Williams reprint sales manager Lauren Melesio CRAIN’S ONLINE POLL COMMENTS production and pre-press director Michael Corsi advertising production manager Suzanne Fleischman Wies

TO SUBSCRIBE: Take down scaffold law For print and digital subscriptions or customer service, e-mail [email protected] OUTDATED STATUTE governments are similarly THE FORGOTTEN TOUR or call 877-824-9379 (in the U.S. and Canada) or HAMPERS BUSINESS threatened. The largest 313-446-0450 (all other locations). $3.00 a copy for scaffold-law case in 2012 was I was shocked that your the print edition; or $99.95 one year, $179.95 two As Gov. Andrew Cuomo seeks against a school, and one of the Web story “Five Boro Bike years, for print subscriptions with digital access. bloomberg newsbloomberg www.crainsnewyork.com/subscribe to rebuild New York’s largest in recent years was Tour makes Italian upgrade” SHOULD THE NEXT POPE infrastructure, relieve our against a municipality. ( Jan. 25) omitted mention of TO ADVERTISE: COME FROM THE municipalities from crushing When the state is sued, Gran Fondo New York. Having Contact Trish Henry at mandates and create jobs, he taxpayers foot the bill. In the experienced competitive city [email protected] or call 212-210-0711. AMERICAS? www.crainsnewyork.com/advertise should push for a reform that recent Kin vs. State of New York cycling in some of Europe’s Yes. The time has come for the church to provides all three. case, the court ruled against the Gran Fondos (city road races), I FOR INFORMATION ON OUR EVENTS: embrace the New World and new ideas. Businesses, contractors, state even though the plaintiff was thrilled when GFNY Contact Courtney Williams at municipalities and taxpayer was injured because she used premiered in 2011. [email protected] or 212-210-0257. No. The pope should be the best-qualified groups from across the state the wrong equipment. For an avid amateur, the www.crainsnewyork.com/events person, which probably means that he will be are asking the governor to In any other state, that opportunity to ride 100 miles TO CONTACT THE NEWSROOM: Italian and familiar with the Vatican’s ways. support reform of the scaffold would factor into the alongside top cyclists from 711 Third Ave., New York, NY 10017-4036 No. It’s more important for the church to limit law, an outdated statute that judgment, but because of the more than 70 countries is editorial phone: 212.210.0277 fax 212.210.0799 its search to candidates 65 and younger. holds employers and scaffold law, New York is fully unlike any cycling experience in Entire contents ©copyright 2013 Crain Communications Inc. contractors absolutely liable liable. New York City. All rights reserved. ®CityBusiness is a registered trademark Date of poll: Feb. 11 of MCP Inc., used under license agreement. 217 votes for worksite injuries even if The governor has a rare Judging by the quality of the they were not predominately opportunity to improve our race experience and the CRAIN COMMUNICATIONS INC. at fault. economy, remove expensive growing numbers of chairman Keith E. Crain This law exists only in New mandates and save the state participants, GFNY is on its president Rance Crain York state and is the reason money—all at no cost. way to becoming the city’s own treasurerMary Kay Crain 35% contractors here pay exorbitant We urge him to support Tour de France. Cindi Crain Yes insurance premiums. Every scaffold-law reform and bring —junko macbride executive vp, operations William Morrow 52% dollar spent on insurance is a New York in line with every senior vp, group publisher Gloria Scoby No group vp, technology, circulation, dollar unavailable for hiring other state. Editor’s note: Gran Fondo manufacturing Robert C. Adams workers. —william shuzman New York’s course begins on vp/production, manufacturing David Kamis 13% But not just builders and Executive director the city’s side of the George chief information officer Paul Dalpiaz No property owners are affected. Allied Building Metal Washington Bridge; the rest is founder G.D. Crain Jr. (1885-1973) School districts and local Industries outside the five boroughs. chairman Mrs. G.D. Crain Jr. (1911-1996) secretary Merrilee Crain (1942-2012) FOR THIS WEEK’S QUESTIONS: CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to [email protected]. Send columns of 475 Go to www.crainsnewyork.com/poll to have your say. words or fewer to [email protected]. Please include the writer’s name, company, address and telephone number.

12 | Crain’s New York Business | February 18, 2013 candidates, how can they know how they will vote? What race? Voters The idea that Ms. Quinn is the front- runner is a media fallacy. So much me- dia coverage of politics today is about haven’t tuned in yet the horse race, and to create tension there needs to be a favorite and un- derdogs. If she is the front-runner, hose who care a lot about politics and govern- she is leading because a few more ment—people like me and many Crain’s readers— people know who she is than know often lose sight of how most people think about the eight other candidates. (Yes, there are nine at least remotely cred- politics. In doing so, we lose sight of how—and ible ones. Can you name them?) when—elections are won and lost. In many ways, 2013 is a repeat of the I was reminded of that last month when I started teaching 2001 election, when it was presumed that T a Democrat would win easily. The New my class on the New York City economy at Baruch College.The York Times waited until November 25 students are mostly in their 30s, working on their master’s 2000 to mention that Michael Bloomberg would be a candidate, degrees in public affairs, and many even though he had made his inter- have jobs that involve interacting est known three years earlier. His with city government. I began the candidacy was completely class with a quiz, asking them to dismissed, although focus groups name the mayoral candidates. conducted by his campaign a month Fifteen could not name a single after the Times story showed that he one. was almost as well known as the De- My favorite first-year law mocrats. I bet focus groups would student at Fordham didn’t do any show something similar today. better. When I asked her how many The conventional wisdom is that candidates she could name,she said, Mr.Bloomberg won only because of “That woman on the cover of New the turmoil of the Sept. 11 terrorist York magazine and that MTA guy.” attacks. That may be true, but it is She couldn’t actually come up with GREG DAVID also true that he would have been a the names. competitive candidate even without The lessons of these anecdotes that disaster. are pretty obvious. 25 percentage points. That MTA The voters will pay attention Polls mean nothing at this stage.The guy, Joe Lhota, has a similarly com- starting in late August—a couple of latest Quinnipiac poll shows that manding lead over his four Repub- weeks before the scheduled City Council Speaker Christine lican rivals, although he would lose September primary—and then Quinn (the woman on the cover of decisively in the November election again sometime in October. That’s New York magazine) leads the other against any of the Democrats. Real- why this election’s result is not Democratic contenders by at least ly? If no knows anything about the preordained.

ROLAND LEWIS on the East River Ferry is relatively low. Express buses require more than twice the subsidy per rider. Ferries are NY’s Need more convincing? The service has proved to be an engine of economic development, with new forgotten transit link businesses opening near increasing- ly busy ferry terminals. The decision to renew the East f New Yorkers ever needed a reminder that we are island River Ferry has come at a propitious people, Superstorm Sandy gave us an impossible-to- time. With the city reeling from ignore wake-up call. Sandy, it quickly became clear that ferries are the most resilient form of And what did we wake up to, soon after the storm? transit. Subways, roads and com- Ferries crisscrossing our waterways on their usual muter rails needed weeks or months routes but jammed with commuters. With roads congested to restore normal service.Ferries not I only came back quickly, but new and tunnels flooded, our resilient ferry system gave us the lines were also established to recon- ability to get around, just as it has in other emergencies. nect lower Manhattan and midtown to the hard-hit neighborhoods of Remember ferries relieving the an exciting opportunity, but not southern Staten Island and the paralysis of the 2005 transit strike? without a guaranteed subsidy. Rockaways. The grateful riders in the 2003 black- All around New York and New Superstorm Sandy reminded us out? The tens of thousands at the Jersey, people rely on ferries. The that New York is a coastal city and shores of lower Manhattan on 9/11? East River Ferry has doubled rider- needs a more resilient waterfront. It is undeniable: We need fre- ship projections, carrying 1.7 mil- As Mayor Michael Bloomberg quent, safe, affordable ferries. But lion passengers to date. An integral pledged, we are not retreating from on the East River, the affordable component of the city’s transit net- the water, but we must rebuild piece of the equation might be in work, ferries—like all modes of smarter. An affordable ferry system jeopardy. public transit—require sustained is a vital component. We need fer- Just a year and a half after the East subsidies to keep fares affordable. ries: for commuting, for job cre- River Ferry’s maiden voyage, the Ferry service is a true New York ation, for emergencies. It’s time to popular route’s operating contract is bargain.The government pours bil- subsidize and expand the ferry sys- up for renewal, and the annual $3.1 lions of dollars into subway tunnels, tem so that all New Yorkers may use million city subsidy that has kept the roads and bridges, while our under- this essential service. fare at $4 is on the chopping block. utilized waterways, which offer The mayor last week pledged to abundant potential for relieving Roland Lewis is president and CEO of the make the service permanent and has clogged roads, require virtually no Metropolitan Waterfront Alliance, a issued a request for proposals to capital investment. coalition of more than 700 businesses and ferry operators for a long-term ex- Moreover, the public funding re- civic organizations dedicated to a vibrant, tension beginning in June 2014. It’s quired to maintain reasonable fares accessible and resilient harbor.

February 18, 2013 | Crain’s New York Business | 13 SMALL BUSINESS Specialty PR firms take on Goliaths Owning a niche helps Pharma companies relocating and adjusted well: “The recession to go—you can’t be all things to all expanding in New York City,” Mr. slowed things temporarily, but the people,” said Richard Dukas, presi- small local outfits Suthers said. past three years have seen double- dent of the profitable agency, which Having already done work for digit growth in the U.S., according has 16 employees and had about compete against the pharmaceutical giants, the firm to our data.” $3.5 million in revenue last year.“It’s made a smooth transition to repre- A 2012 survey by StevensGould- hard to compete against the Edel- big guys—and grow senting health care startups like Pincus, a merger and management mans, Rubensteins and Ruder eCaring, one of its newer clients. consulting Finns of the world if you don’t have BY EILENE ZIMMERMAN “We see a lot of potential on the company spe- expertise in a particular area. Now back end, as these companies cializing in PR, $201 we do compete with large firms and ublic-relations firm grow,”Mr.Suthers said,noting that found that AVERAGE hourly other specialty firms—and we often Spector & Associates Spector & Associates is profitable billing rates billing rate at win in finance—because we are ex- financial-publicity used to represent compa- and its revenue has more than tend to be firms, 2011 perts in that area.” gibbons catherine nies in many different ar- tripled over the past two years (he highest among REFOCUSED: Elliott Suthers’ firm, Spector & eas, including education, declined to reveal the actual rev- PR firms fo- Round-the-clock service Associates, is going after high-tech, defense Penergy, telecom and financial serv- enue number). cused on $195 About two years ago, Ron Gold, and health care work to gain an edge. ices. But about two years ago, with sports/enter- AVERAGE hourly president of Marketing Works, a the economy tanking, many of its Double-digit growth tainment, billing rate at public-relations firm with offices in Mr. Gold. sports-publicity clients—particularly in financial Public relations is a $4.2 billion health care and firms, 2011 Manhattan and Long Island, began “We recently teamed up with an services and energy—began cutting industry in the U.S., according to a public affairs. focusing more of his company’s re- Internet marketing firm that spe- Source: StevensGould- their public-relations budgets. report in September from invest- Dukas Pub- Pincus data on flat rates sources on the nonprofit arena. He cializes in nonprofits and won the charged when workers of “We saw clients bringing their ment firm Veronis Suhler Steven- lic Relations— varying seniority levels becomes an integral part of the non- contract for the Institute for Com- PR requirements in-house,” said son. It was hit hard by the recession, which had participate in a project profit client’s team and makes him- munity Living,” he said. “We beat Elliott Suthers, vice president of the but that only added to challenges clients in a vari- self available around the clock. out high-profile New York PR firms 12-employee company.“We made a brought by a changing media and ety of industries, including the fi- “A larger firm does not give that because of the accounts we both had decision that we would stay compet- communications landscape,accord- nancial sector—began narrowing its kind of personalized service,” said in the industry.” itively positioned by focusing on de- ing to Matt Shaw, senior vice presi- focus to financial services about two Mr.Gold,whose profitable business It’s hard to spin it better than fense, health care and high technol- dent of the Council of Public Rela- years ago. Now the firm works with has three employees and about that. Ⅲ ogy, as these are somewhat immune tions Firms, a trade association. hedge funds, mutual funds, ex- $500,000 in annual revenue. to economic ups and downs.” Becoming more specialized has change-traded funds, investment In two years he’s added 10 To sign up for Crain’s Those markets made sense geo- helped many PR agencies—espe- banks and wealth advisory firms. clients, mostly nonprofits, largely SMALL BUSINESS newsletter, go to graphically, too. “We were seeing a cially small ones—compete.As a re- “For us, as a small firm aspiring through referrals. Revenue is www.crainsnewyork.com/smallbiz. lot of health care startups and Big sult,Mr.Shaw said,the industry has to be a midsize firm,this is good way growing at 25% a year, according to

14 | Crain’s New York Business | February 18, 2013 REAL ESTATE INSIDE The List CoStar’s top NY office leases PAGE 15 ‘There’s a lot of money chasing real estate’ REPORT —Michael Sherman, senior vice president, CBRE, Page 14 Illegal solution for more housing? Quest for additional affordable units tests limit of rules on size, light and location

BY NICK MORONI

An apartment in the basement of a two-story building in Astoria, Queens, is rented by a Bangladeshi immigrant who works at Madison Square Garden.The unit includes a small living room, a bathroom and a kitchen. The space is heated, has windows and has exits at both ends. At $900 a month, it’s a pretty good deal. It’s also illegal. Even the building’s owner, who declined to be named,concedes that because the property sits on a slope, more than half of it is “below grade,” which technically makes it a cellar LET’S MAKE A DEAL: and thus unlawful to rent out. Peter D’Arcy’s M&T Known in Bank has been housing circles particularly active in as accessory the real estate market. dwelling units, such basement units are draw- ing increasing attention from a Scott Stringer range of groups eager to expand the supply of low-cost apartments in the city in an effort to accommodate young workers just starting out, as well as immigrants. Chhaya Community Develop- ment Corp.estimates there are more than 100,000 illegal ADUs city- wide, many of them in outer- borough neighborhoods with large Lenders loosening up immigrant populations.

Reason to modify zoning larry ford “They’re really one of the last [af- fordable housing] options out weight global group including HSBC LOWER proposal to finance the $45 million there,” said Seema Agnani, execu- Stronger economy Bank, Bank of New York Mellon,TD conversion of the upper floors of a for- tive director of Jackson Heights, and property market, Bank, Bank of Nova Scotia and Wells LEVERAGE mer Verizon building on West 50th Queens-based Chhaya, which fo- Fargo Bank is providing a five-year, Property loan-to-value Street into luxury condominiums—a cuses on immigrant and affordable- low interest rates lift $340 million construction loan to ratios slice of the residential market that has housing issues in the city. Brookfield Office Properties Inc.The Prerecession struggled to attract financing until re- In fact, facing similar shortages the sector’s appeal big Canadian developer will use the cently. of affordable housing, several other funds to build a platform over the train 80% to 90% Both are evidence of lenders loos- cities, including Santa Cruz, Calif., BY STEPHEN KLEEGE tracks at its planned Hudson Yards de- ening their purse strings in the face of and Orlando, Fla., in recent years velopment just west of Penn Station— Market bottom mounting evidence of an economic have moved to modify their build- Two successful financings last month a three-building project for which it recovery at home, demand for dollar- ing, housing and zoning codes to le- set the stage for what is looking like a has yet to line up a single tenant. 55% denominated investments as the Eu- galize a greater number of such significantly healthier real estate In the other loan, Deutsche Bank Now ropean economy slumps and rock- dwellings. A number of states have lending market this year. Group’s PB Capital emerged from a bottom interest rates that heighten See ILLEGAL on Page 19 In the larger of the two, a heavy- pack of competitors with the winning 65% to 70% See LENDERS on Page 19

February 18, 2013 | Crain’s New York Business | 15 NEXT WEEK: THE The most active CoStar’s Top Office Leases venture-capital LIST Biggest Manhattan transactions in 2012, ranked by square feet firms THE SCOOP TRENDS Industry breakdown espite an improving economy,the 50 largest Manhattan office deals in Number of renewals grows as tenants stay put 2012 were not only smaller than they were in 2011, but fewer of them Financial service firms led the pack, signing the greatest In 2012, just 21 of the top deals were for new leases. In fact, involved tenants moving to new spaces, according to research provid- number of large leases in 2012. all of the top 10 were renewed properties. ed to Crain’s from CoStar Group Inc. Financial services The total square footage of the top 50 transactions came to 12.8 12 29 29 Dmillion,down 6.7% from 2011.Furthermore,29 of the deals were renewals or expan- Professional services 27 sions—including all of the top 10. In 2011, 27 top deals fell into that category. 11 23 “Office tenants are taking a conservative approach with their space needs in New Technology/media 21 10 York,”said Adrian Ponsen,a senior economist at CoStar.“Very few are making large Retail expansions into pricey submarkets.They are instead renewing in places that expire.” 6 Still, the 1.6 million-square-foot Viacom Inc. lease at 1515 Broadway ranked as Government 5 the largest Manhattan office deal in a decade.In April,the media company renewed Health care and expanded its then-1.4 million-square-foot space through 2031. 4 The deal was one of 10 technology and media leases on CoStar’s list,half of which Education 2008 2009 2010 2011 2012 2 were in midtown submarkets. Because the area is attracting these types of tenants— Includes space that was renewed and expanded. as well as retailers who signed six of the top 50 deals, three in midtown—many prop- erties are demanding higher rents. In Penn Plaza and the garment district, for exam- ple, asking rents grew 3.4%, to $41.16 per square foot, in the final quarter of 2012 from a year earlier, according to CoStar. Changing neighborhoods Despite myriad problems, financial services continued to dominate leasing. It Number of deals for the top six submarkets accounted for a dozen of the largest deals of the year, including the 1.2 million- square-foot Morgan Stanley Smith Barney lease at 1 New York Plaza (No.2),where Penn Plaza/Garment 12,782,456 the tenant renewed its lease and added 337,000 square feet. 7 Total square footage leased in the 50 largest deals Even as financial service tenants signed deals,however,many also put space else- World Trade Center where in the city up for sublease. UBS, for example, renewed and expanded its lease 7 at 1285 Sixth Ave. to 890,861 square feet (No. 3). But at the same time, it also Financial district offered several floors for sublease at 299 Park Ave., the home to some of its 6 investment-banking operations. Plaza district Leasing activity is expected to pick up in 2013.Already this year,there have been 6 a handful of large deals, including the nearly 80,000 square feet snapped up by the Grand Central American Arbitration Association at 120 Broadway earlier this month. “I definitely think we will start to see more leases pick up as GDP growth moves 5 up and people become more confident,” said Mr. Ponsen. Times Square 5 —emily laermer buck ennis

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

1 1515 Broadway 1 1,606,000 Viacom Inc. CBRE SL Green Realty Corp. SL Green Realty Corp. Times Square 2 1 New York Plaza1 1,152,763 Morgan Stanley Smith Barney Newmark Grubb Knight Frank Brookfield Office Properties Inc. Brookfield Office Properties Inc. Financial district 3 1285 Sixth Ave.1 890,861 UBS CBRE 1285 LLC Jones Lang LaSalle Columbus Circle 4 450 Lexington Ave.2 649,769 Davis Polk & Wardwell CBRE RXR Realty RXR Realty Grand Central 5 601 Lexington Ave.2 490,527 Citibank CBRE Boston Properties Inc. Jones Lang LaSalle Plaza district 6 100 Church St.2 372,520 New York City Law Department CBRE SL Green Realty Corp. Newmark Grubb Knight Frank World Trade Center 7 340 West St.2 372,382 Bloomberg LP CBRE Eugene M. Grant & Co. Eugene M. Grant & Co. Hudson Square 8 114 W. 47th St.2 362,907 Bank of America Merrill Lynch Cushman & Wakefield Inc. The Durst Organization The Durst Organization Times Square 9 1745 Broadway2 361,044 Random House Inc. Cassidy Turley SL Green Realty Corp. SL Green Realty Corp. Columbus Circle 10 1 Chase Manhattan Plaza2 337,000 Milbank Tweed Hadley & McCloy Cushman & Wakefield Inc. JPMorgan Chase & Co. Newmark Grubb Knight Frank Financial district 11 1 World Trade Center3 270,104 U.S. General Services Administration Studley The Durst Organization/ The Durst Organization World Trade Center The Port Authority of NY & NJ

12 1372 Broadway2 264,692 Ross Dress for Less Studley Starwood Capital Group Direct deal Penn Plaza/Garment 13 200 Park Ave.2 262,000 BNY Mellon Jones Lang LaSalle Tishman Speyer Tishman Speyer Grand Central 14 200 & 205 Hudson St.3 257,580 Havas Newmark Grubb Knight Frank Trinity Church Real Estate Cushman & Wakefield Inc. TriBeCa 15 250 W. 55th St.3 246,374 Kaye Scholer CBRE Boston Properties Inc. CBRE Columbus Circle 16 1 State Street Plaza1 237,991 New York State Direct deal ACTA Realty CBRE Financial district Department of Financial Services

17 2 Penn Plaza2 225,045 Information Builders Inc. SL Green Realty Corp. Vornado Realty Trust Vornado Office Management Inc. Penn Plaza/Garment 18 909 Third Ave.3 220,359 Interpublic Group Jones Lang LaSalle Vornado Realty Trust Jones Lang LaSalle Plaza district 19 11 Times Square3 203,693 Microsoft Jones Lang LaSalle SJP Properties Jones Lang LaSalle Times Square 20 1301-1315 Sixth Ave.3 203,102 Chadbourne & Parke Newmark Grubb Knight Frank Paramount Group Inc. Paramount Group Inc. Columbus Circle 21 1440 Broadway2 201,194 Macy's Merchandising Group CBRE Prudential Real Estate Advisors Monday Properties Penn Plaza/Garment 22 33 Whitehall St.1 180,519 Fitch Inc. Cushman & Wakefield Inc. Stawski Partners CBRE Financial district 23 101 Sixth Ave.3 175,692 New York Genome Center Newmark Grubb Knight Frank Edward J. Minskoff Equities Inc. Jones Lang LaSalle Hudson Square 24 14 Wall St.3 165,029 Amerigroup Corp. Studley Roza 14W CBRE Financial district 25 200 Madison Ave.2 159,412 Havas Newmark Grubb Knight Frank George Comfort & Sons Inc. George Comfort & Sons Inc. Murray Hill 26 1 Penn Plaza2 146,677 U.S. Customs and Border Protection Studley Vornado Realty Trust Vornado Office Management Inc. Penn Plaza/Garment 27 320 W. 31st St.2 144,916 Technical Career Institute Jones Lang LaSalle Overtime Properties Cushman & Wakefield Inc. Penn Plaza/Garment Continued on page 18

16 | Crain’s New York Business | February 18, 2013

THE LIST CoStar’s Top Manhattan Office Leases

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

28 1 World Trade Center4 140,277 Condé Nast CBRE The Durst Organization/ Cushman & Wakefield Inc./ World Trade Center The Port Authority of NY & NJ The Durst Organization

29 605 Third Ave.2 137,000 Univision Communications Inc. CBRE Fisher Brothers Management Co. Fisher Brothers Management Co. Grand Central 30 1 Liberty Plaza3 133,609 Transatlantic Reinsurance Co. Cushman & Wakefield Inc. Brookfield Office Properties Inc. Brookfield Office Properties Inc. World Trade Center 31 1 Liberty Plaza3 132,092 Investment Technology Group Inc. Newmark Grubb Knight Frank Brookfield Office Properties Inc. Brookfield Office Properties Inc. World Trade Center 32 100 Church St.3 131,946 New York City Law Department CBRE SL Green Realty Corp. Newmark Grubb Knight Frank World Trade Center 33 200 Lafayette St.3 130,000 JCPenney Welco Realty Inc Kushner Cos. CBRE/Newmark Grubb Knight Frank SoHo 34 675-691 Sixth Ave.3 125,644 Weight Watchers International Inc. Newmark Grubb Knight Frank 625 Ownership Newmark Grubb Knight Frank Chelsea 35 105 E. 17th St.3 125,000 Newmark Grubb Knight Frank The Related Cos. UGL Services Gramercy Park 36 655 Third Ave.1 122,500 Mitsubishi International Corp. Jones Lang LaSalle The Durst Organization The Durst Organization Grand Central 37 350 Fifth Ave.3 119,682 Coty Inc. Cassidy Turley Malkin Properties Newmark Grubb Knight Frank Penn Plaza/Garment 38 85 Broad St.3 116,258 Nielsen Media Research CBRE MetLife Inc. Jones Lang LaSalle Financial district 39 488 Madison Ave.2 107,300 TBWA Worldwide Feld Real Estate The Feil Organization Jeffrey Management Plaza district 40 1114 Sixth Ave.2 106,443 Cooley Newmark Grubb Knight Frank Brookfield Office Properties Inc. Brookfield Office Properties Inc. Times Square 41 1 World Financial Center1 104,851 XL Global Services Inc. Weir Real Estate Brookfield Office Properties Inc. Brookfield Office Properties Inc. World Trade Center 42 600 Madison Ave.2 103,457 Alvarez & Marsal Cassidy Turley & Studley Lawrence Ruben Co. Inc. Ruben Cos. Plaza district 43 350 Park Ave.1 102,622 M&T Bank Cushman & Wakefield Inc. Vornado Realty Trust Vornado Office Management Inc. Plaza district 44 650 Madison Ave.3 100,788 Memorial Sloan-Kettering Newmark Grubb Knight Frank Carlyle Investment Management Cushman & Wakefield Inc./ Plaza district Jones Lang LaSalle

45 485 Lexington Ave.5 100,725 Xerox Jones Lang LaSalle SL Green Realty Corp. Cushman & Wakefield Inc. Grand Central 46 350 Hudson St.3 98,585 Medidata Solutions Inc. Jones Lang LaSalle Trinity Church Real Estate Trinity Real Estate Hudson Square 47 200 Madison Ave.2 98,516 Greater New York Mutual Insurance Co. Direct deal George Comfort & Sons Inc. George Comfort & Sons Inc. Murray Hill 48 1120 Sixth Ave.3 96,350 Perry Ellis International Jones Lang LaSalle Edison Properties Cushman & Wakefield Inc. Times Square 49 100 W. 33rd St.3 94,522 Interpublic Group Jones Lang LaSalle Vornado Realty Trust Vornado Office Management Inc. Penn Plaza/Garment 50 75 Ninth Ave.4 94,137 Google CBRE Jamestown Properties Newmark Grubb Knight Frank Chelsea

This list includes leases with terms of more than two years. 1-Renewal and expansion. 2-Renewal. 3-New. 4-Expansion. 5-Sublease. CoStar Group Inc., a provider of information services to the commercial real estate industry and related businesses, conducts ongoing, extensive research to produce and maintain the largest and most comprehensive database of commercial real estate information. For more information, visit www.costar.com or call (800) 204-5960.

REAL ESTATE DEALS own,” said Michael Dana, president BARE BONES of Onex.“We’re adding a lot of fash- Chelsea tenant ion retailers to the center.” —ali elkin Marketing firm eyes jump to WFC subleases on B’way fK Market Research is close to signing a roughly 75,000- square-foot lease at 1 World Financial Center,according to sources Two years ago,when Cassidy Turley familiar with the deal. broker Richard Bernstein landed The company will take one of the 40-story tower’s lower the assignment from Random floors for about 10 years for an asking rent in the $40s per square House to sublease 300,000 square Gfoot. Several spaces are available in the 1.6 million-square-foot tower. feet of its space at 1745 Broadway, he The deal is one of several that have been rumored at the four-building, knew his chances of filling it with 218 W. 18TH ST. 400 W. 59TH ST. 341 W. 38TH ST. one mega-tenant were slim. After AND 925 NINTH AVE. 8 million-square-foot World Financial Center complex. Earlier this month, ASKING RENT; TERM: ASKING RENT; TERM: Dennis Friedrich,the chief executive of Brookfield Properties,which owns the all,there were plenty of big blocks of High $50s; 10 years ASKING RENT; TERM: $28 per square foot; buildings,boldly announced during an earnings call that the company had sol- space languishing on the market on Undisclosed; long-term five years SQUARE FEET: 27,000 lease id lease commitments for about 1.5 million square feet. Sixth Avenue, just two blocks away. SQUARE FEET: 2,200 Tenants like HBO, Group M and Sony have been said Instead he has found success the TENANT; REP: SAE SQUARE FEET: 85,000 to be looking at the World Financial Center. old-fashioned way, by playing the Institute of Technology; TENANT; REPS: The Neil Schorr of Realty TENANT; REPS: The Creutzfeldt-Jakob Disease GfK will relocate from Chelsea Market.The space the real estate version of small ball. His Insight Group Inc. Speyer Legacy School; Foundation; Rosanne company is leaving behind will be filled by Google, which latest hit is a nearly 30,000-square- Phil Amarante and Alex Lucarelli and Peter has expanded into Chelsea Market from its city headquar- foot sublease for Maryland-based LANDLORD; REPS: Atlas Jinishian of Colliers Newman of Handler Real Capital Group and International Estate ters across the street at 111 Eighth Ave. marketing company Merkle. The GreenOak Real Estate; Richard Plehn of Colliers International and Mark firm will take 1745 Broadway’s en- Gregg Rothkin and LANDLORD; REPS: The LANDLORD; REP: Central Jaccom of Cresa represented GfK in its move; John tire 23rd floor in a deal that stretch- Stephen Siegel of CBRE Brodsky Organization; Properties; Ian Weiss of Group Inc. Josh Kuriloff and Jodi ABS Partners Wheeler, a broker at Jones Lang LaSalle,represented es until 2018. The asking rent was Roberts of Cushman & 1 World Financial Center. —daniel geiger $50 per square foot. BACK STORY: The school Wakefield BACK STORY: The Merkle was represented by will move to its new nonprofit organization will Chelsea location, where it BACK STORY: The school, relocate its headquarters Newmark Grubb Knight Frank’s will take the fourth and which teaches students from Akron, Ohio, to New New Flushing mall Target, Marshall’s, Old Navy and New York area President David fifth floors, in June. from kindergarten through York, according to The Sky Foods, an Asian supermarket. Falk and Jason Greenstein, a broker eighth grade, will relocate Commercial Observer. lands Carter’s The mall is connected to Sky View at the company. and expand to a two- building campus on the Parc, a 448-unit condominium The 23rd floor is the eighth of 10 West Side. Baby clothier Carter’s is hitting the complex. floors that Mr. Bernstein has filled mall in Flushing, Queens. The Onex Real Estate Partners is the over the past year and a half by go- chain has just inked a 10-year lease owner and developer of the Sky ing after smaller tenants. and brought all of its operations into Random House renewed its lease for 4,000 square feet at the Sky View View Center. Linda Miller of LM “We’ve done well for a host of rea- the remaining space below. last year for the space it still occu- Center, a new 700,000-square-foot Global Retail partners represented sons: It’s great space in a relatively “They haven’t reduced their head pies—floors two to 16—through mall at 40-24 College Point Blvd., and Onex, while Josh Podell of Podell new tower that Random House runs count at all,”Mr.Bernstein said.“By 2023, with options to extend beyond will move into the center, where the Real Estate represented Carter’s. extremely well,” Mr. Bernstein said. using an efficient floor plan, they that. Meanwhile, Mr. Bernstein has asking rent is $75 per square foot, in “We’ve developed a very strong In recent years, the publisher has managed to bring their entire oper- filled almost all the floors the publish- May. brand, and Carter’s is another great moved to consolidate its footprint. ation into almost half the space they er wanted to divest itself of. The mall’s other tenants include retailer with a strong brand of its It offered floors 16 to 25 for sublease originally leased.” —daniel geiger

18 | Crain’s New York Business | February 18, 2013 REPORT REAL ESTATE Lenders loosen purse strings CMBS IN THE DOLDRUMS ONE GLARING EXCEPTION to the brighter financing picture is the commercial mortgage-backed securities market, which is still hurting. Continued from Page 15 ments, a big money-center bank About $300 billion of CMBS loans will mature annually for the next three the appeal of higher-rate property such as Wells Fargo or JPMorgan years, which will “decrease lenders’ ability to write new commercial loans. Banks, insurance companies, will underwrite a credit of $250 mortgages and force a continuation of extend-and-pretend strategies on equity funds and wealthy individu- million or more and farm out por- existing debt,” according to “Emerging Trends in Real Estate 2013,” an annual als from abroad are all hungry for as- tions of the loan to a group of survey by the Urban Land Institute and PricewaterhouseCoopers. sets that are seen as less volatile than lenders. Mark Edelstein, chairman of Morrison & Foerster’s real estate finance stocks and provide higher yields “There were a number of large practice, estimated 2013 CMBS issuance will total between $45 billion than bonds. deals that got financed” through and $80 billion. “There’s a lot of money chasing syndicates last year, as banks grew The retreat of the CMBS lenders is contributing to a financing void for real estate,” said Michael Sherman, more comfortable with participat- borrowers with less than a Grade-A credit rating. Madison Realty Capital, senior vice president of the debt and ing, said Peter D’Arcy, regional backed by pension funds, insurers and endowments, provides bridge equity finance group at CBRE. president of M&T Bank. “There’s “The returns on real estate, along probably as many or more that have financing to these so-called deals with “hair” at rates that range from 9% to with the collateral, make the real es- been in the pipeline that will get 12%. Madison’s recent financings included a $22 million loan to upgrade an tate market an attractive place for done this year.” apartment building on Thompson Street in SoHo where there had been a fire people to put their money.” M&T,which managed to escape and the owner needed capital to pay off an existing loan, co-founder Josh the real estate crash without any ma- Zegen said. Good reputation jor charge-offs, has been a particu- —STEPHEN KLEEGE What helped draw cash to larly active syndicator in the New Brookfield’s project was the devel- York City real estate market. The oper itself,said Bill Cotter,executive ‘Frankly, it’s Buffalo-based bank provided fi- the loan-to-value ratio, recourse or Among the mezzanine lenders is vice president and commercial real nancing for the Stahl Organization’s non-recourse, how long the term, Chicago-based Pearlmark Real Es- estate division manager at Wells kind of a planned $265 million, 600-foot-tall and the amortization and rate.” tate Partners, a private-equity firm Fargo. Though Brookfield said it rental and condominium tower at Loan-to-value (of the property) that invested $5 million to grease wouldn’t proceed with the two office borrower’s 388 Bridge St. in Brooklyn. ratios, which had fallen to as little as the skids for Savanna’s $57 million towers at the site until it lined up an- Other deals included a $60 mil- 55% from 80% or even 90% during acquisition of the retail space at 465 chor tenants, the deep-pocketed market now’ lion loan for an office and retail de- the boom years, have ticked back up Broadway. The transaction, bro- company’s financial commitment to velopment at 877 Washington St.in to 65% to 70%,reflecting improving kered by Studley Inc., was financed the project gave lenders the confi- Manhattan’s meatpacking district confidence in the market. with a $42 million acquisition loan dence they needed. and financing for the redevelop- “You’ve seen the other end of that from Mesa West Capital and equity “There’ll be a lot of people who ment of the Carlton House at 680 slope, where those credit standards from Savanna Real Estate Fund II. will follow Brookfield,” Mr. Cotter Madison Ave. by Extell Develop- are becoming less restrictive,” said Add up all the sources of fund- said.The size of the bank group was the exercise was “much easier” than ment and Angelo Gordon & Co., Stephen Theriot, managing partner ing, and things are looking up for indicative of confidence that lenders it was in 2011,when the same group Mr. D’Arcy said. of Deloitte’s Northeast real estate borrowers. have in the city, he said. raised $100 million for a similar In pouring money into residen- practice. “There’s a lot of investor capital The popularity of lending project on West 18th Street near tial condos and office-related con- that is looking to invest in good against New York assets was glar- Seventh Avenue. struction, the banks are returning to More capital, please Manhattan real estate deals,” said ingly clear at the condo develop- At the time, he said, his clients assets they actively shunned during As a result, deals today typically Howard Michaels, chairman of the ment on West 50th Street and 10th might as well have been asking for the lean years—albeit on more con- require more capital from equity Carlton Group, which arranged the Avenue. For that project, owners $1 billion. Now lenders are more servative terms than during the funds, which are seeking returns of $400 million investment sale and JDS Development, Property Man- openhanded, he said, partly as a re- boom. 15% to 20% on their money, and $600 million of debt and equity fi- agement Group and Starwood sult of the group’s success in devel- “For almost every property type, mezzanine lenders, who take on less nancing for a planned retail, hotel Capital attracted “multiple bids” oping the previous project. there’s a bank today,” said Ira Zlo- of the risk and accept 10% to 12% and LED sign project at West 47th from lenders, according to Jason Raising large sums, however, towitz, president of Eastern Union yields, according to Matthew Galli- Street and Seventh Avenue by a Cohen, managing director of Mis- still tends to be the province not of Funding. That marks a change, but gan, executive vice president and group led by developer Steve sion Capital Advisors, who bro- individual lenders but teams or syn- one that he notes also comes with group head of CIT Real Estate Witkoff.“Frankly,it’s kind of a bor- kered the deal. He also noted that dicates of them. In those arrange- some caveats.“The questions will be Finance. rower’s market now.” Ⅲ

ply unsuitable. Meanwhile, Mr. Illegal solution for more affordable housing? Stringer’s backing for such proposed legalizations marks an important step, but any such measure would Continued from Page 15 people could free up affordable have to be approved by the City also passed laws that address the is- RENTAL COSTS housing for younger people, as old- Council,where support is uncertain. sue. In New York, it’s an effort that Citywide statistics for all sizes of apartments er people hoard [rent-regulated] Jumaane Williams, a Brooklyn has long been championed by the large apartments they’ve had for councilman who sits on the Hous- Immigrant Housing Collaborative, decades because they cannot afford ing and Buildings Committee, sup- a Manhattan-based coalition of $1,160 $1,550 to move into a more expensive, ported the idea but assayed its housing groups. More recently, MEDIAN RENT for stabilized MEDIAN RENT for smaller unit.” chances of becoming law as hazy at Manhattan Borough President apartments market-rate units best. Scott Stringer endorsed the concept. Testing small apartments “I’ve been doing this long A report released by Mr. Just last month, the city an- enough to know that sometimes be- Stringer’s office in December pre- nounced another possible answer to ing right is not enough,” Mr. dicted that such changes would 50% 30% the affordable-housing shortage by Williams said. bring these dwellings “out of the PORTION of New Yorkers spending PORTION of New Yorkers spending easing rules on minimum apartment Similarly, while Mayor Michael shadows.” Doing so, the report con- over a third of income on rent over half of income on rent sizes.In a pilot program,the city will Bloomberg has long identified af- cluded,would add tens of thousands Source: Furman Center for Real Estate & Urban Policy at New York University build a 55-unit building at 335 E. fordable housing as one of his top of affordable units to the city’s legal 27th St. with units as small as 250 priorities, his position on the legal- housing stock and would spur eco- square feet. ization proposal is unknown. Sever- nomic growth by accommodating merely making more ADUs legal ing districts to residential use would Meanwhile, Fire Captain Al al of his policy officials did not re- more young workers. would actually accomplish little. have a greater effect. “The city has Hagan, head of the Uniformed spond to interview requests. Mary Ann Tighe, chief executive of embarked on rezoning these areas, Firefighters Association, notes he’s Nonetheless, Jerilyn Perine, ex- Could spur workforce the New York tristate region for real but there are still more that are all in favor of creating more afford- ecutive director of the Citizens “Much of our economic vibrancy estate services giant CBRE,pointed underutilized,” she said. able housing, but with one key Housing and Planning Council and comes from our young immigrants,” out that the effect on the supply of Other critics faulted Mr. caveat:“For the sake of residents and the city’s former housing commis- said Benjamin Dulchin,executive di- housing would be limited. Stringer for focusing too much on firefighters, I would just be careful sioner, insisted that something rector of the Association for Neigh- “Legalizing [dwellings] alone finding housing for millennials. when it comes to skimping on safe- must be done. “This is … about ac- borhood and Housing Development. will not materially increase the hous- “It shouldn’t be targeted only to ty,” he said. cepting the reality that this is how “[Legalizing such units] could end up ing stock since these illegal units are young people,” said Nicole Gelinas, Many others agree that any people are living,and about creating enabling the continued growth of a already occupied,” Ms. Tighe said. a fellow at the Manhattan Institute, moves to legalize more units must be a path to legalization, so we are im- young, creative workforce.” As an alternative, she suggested that a conservative think tank. “More done on a case-by-case basis, and proving the quality of life and safe- But some people insist that converting buildings in manufactur- private affordable housing for older that some of the apartments are sim- ty,” she said. Ⅲ

February 18, 2013 | Crain’s New York Business | 19 TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM EVENT PUBLIC & LEGAL NOTICES Notice of Qualification of Brown & Notice of Qualification of DELAWARE Notice of Formation of LLC. Name: Notice of Qualification of Zweig- Brown of Indiana, LLC. Authority filed LIFE EQUITY INVESTORS, LLC. Doggington’s, LLC. Articles of DiMenna Focus Fund, L.P. Authority with NY Dept. of State on 1/31/13. Authority filed with Secy. of State of NY Organization filed with the Secretary filed with Secy. of State of NY (SSNY) Office location: NY County. LLC (SSNY) on 12/27/12. Office location: of State of New York on December 17, on 01/04/13. Office location: NY formed in IN on 1/10/90. NY Sec. of NY County. LLC formed in Delaware 2012. NY Office Location: New York County. LP formed in Delaware (DE) State designated agent of LLC upon (DE) on 12/26/12. SSNY designated County. SSNY has been designated on 11/29/12. Princ. office of LP: Attn: whom process against it may be as agent of LLC upon whom process as agent of LLC upon process against Legal Dept., 900 Third Ave., NY, NY served and shall mail process to: c/o against it may be served. SSNY shall it may be served. The P.O. address 10022. SSNY designated as agent of CT Corporation System, 111 8th mail process to Attn: Corporation to which the SSNY shall mail a copy LP upon whom process against it may Ave., NY, NY 10011, regd. agent Service Co., 80 State St., Albany, NY of any process against the LLC is be served. SSNY shall mail process to upon whom process may be served. 12207-2543, regd. agent upon whom C/O the LLC: Attn: Denise Lubaway, the Partnership at the princ. office of IN and principal business addr.: and at which process may be 160 Central Park South, Ste. 3801, NY, the LP. Name and addr. of each general 11555 N. Meridian St., Ste. 220, served. DE addr. of LLC: 2711 NY 10019. The principal business partner are available from SSNY. DE Carmel, IN 46032. Cert. of Org. filed Centerville Rd., Ste. 400, Wilmington, address of the LLC is: 160 Central addr. of LP: 2711 Centerville Rd., Ste. with IN Sec. of State, 302 W. DE 19808. Arts. of Org. filed with DE Park South, Ste. 3801, NY, NY 10019, 400, Wilmington, DE 19808. Arts. of Washington St., Indianapolis, IN Secy. of State, John G. Townsend Latest date to dissolve: indefinite. Org. filed with DE Secy. of State, 401 Federal St., Ste. 4, Dover, DE 19901. 46204. Purpose: all lawful purposes. Bldg., 401 Federal St., Dover, DE Purpose of LLC: to engage in any Purpose: Any lawful activity. 19901. Purpose: Any lawful activity. lawful act or activity. NOTICE OF FORMATION OF Capsula NOTICE OF FORMATION OF Notice of Formation of Carole Aciman POSITION & Co. (USA), LLC. Arts of Org filed Notice of Formation of Nada Ray UNUSUAL MUSIAL TRANSPORT LLC. PLLC. Arts. of Org. filed with NY with Secy of State of NY (SSNY) on Media LLC. Arts of Org. filed with NY Arts of Org filed with Secy of State of Dept. of State on 1/24/13. Office AVAILABLE 1/11/13. Office location: NY County. Secy of State (SSNY) on 10/25/12. NY (SSNY) on 10/5/12. Office location: location: NY County. Sec. of State SSNY designated as agent upon Office loc: NY. SSNY is designated Director, Fixed Income Technology NY County. SSNY designated as designated agent of PLLC upon whom process may be served and as agent of LLC upon whom process Mng & sprt fixd incm trd prcsg tech agent upon whom process may be whom process against it may be shall mail copy of process against against it may be served and shall served and shall mail copy of process served and shall mail process to: infrstrctr; Req: Bach in Comp Eng or LLC to principal business address: mail process to 803 W. 180 St, #66, against LLC to principal business c/o Carole Aciman, 301 Cathedral CS & 5 yrs as IT Team Lead, Sr Dvlpr, 300 E. 34th St, Apt. 23G, NY, NY New York, NY 10033. Purpose: any Cnsltnt or smlr mng sprt for fxd incm address: 40 Macdougal St unit 9, NY Pkwy., 20G, NY, NY 10026. Purpose: 10016. Purpose: any lawful act. lawful activity. practice the profession of law. prdcts for fncl trdg envrnmt, incldg NY 10012. Purpose: any lawful act. Mrx pltfrm in mdlg fxd incm prdcts for NOTICE OF FORMATION OF ELITE M&D, LLC, Arts. of Org. filed NOTICE OF FORMATION OF 656 St Notice of Formation of AWILI LLC. PnL & rsk prps in rtes OTC prdct. Chiefco, LLC. Arts of Org filed with with SSNY on 01/04/13. Off. Loc.: Nick LLC. Arts of Org filed with Secy Arts. of Org. filed with NY Dept. of Skls: Deep dmain knwldg fxd incm trded Secy of State of NY (SSNY) on New York County. SSNY designated of State of NY (SSNY) on 12/24/12. State on 10/19/12. Office location: NY prdcts frm tech prspctv (bnds, intrst rte 1/24/13. Office location: NY County. as agent of LLC upon whom process Office location: NY County. SSNY County. Princ. bus. addr.: 22 River swps, crdt dflt swps, FX & FX drivtvs, SSNY designated as agent upon against it may be served. SSNY designated as agent upon whom Terrace, Apt. 7Q, NY, NY 10282. Sec. whom process may be served and mrtge prdcts); Intmt knwldg of trd shall mail a copy of process to: The process may be served and shall of State designated agent of LLC shall mail copy of process against LLC, 34 East Broadway #1, New prcsg fnctns for hdge fnds: T-0 recon, mail copy of process against LLC to: upon whom process against it may LLC to principal business address: York, NY 10002. Purpose: to be served and shall mail process to: T+1 recon, stlmt & clearg; Ablty to sprt served upon him/her is: 72 Madison 120 E. 75th St, #4-A. NY, NY 10021. engage in any lawful act. Corporation Service Co., 80 State lrg-scle Mrex vndr prdct; Exp in prgrmg/ Ave, 6th Fl, NY NY 10016. Principal Purpose: any lawful act. business address: New York. St., Albany, NY 12207, regd. agent mng tech infrstrctr - UNIX/Wndws, 22ND STREET RESTAURANT GROUP, upon whom process may be served. NOTICE OF FORMATION OF Purpose: any lawful act. scrptg, Jva, SQL; Ablty to mng LLC, a domestic LLC, Arts. of Org. Purpose: any lawful activity. stndrds/prfrm cde rviews for tech tm; Noodler, LLC. Arts of Org filed with filed with the SSNY on 1/14/13. NOTICE OF FORMATION OF 759 St Exp wrkg acrss mltpl orgnztns for prjct Secy of State of NY (SSNY) on Office location: New York County. Nick LLC. Arts of Org filed with Secy NOTICE OF FORMATION OF The dlvry. 40 hrs/wk; 9am-5pm; Salary 11/30/12. Office location: NY Co. SSNY is designated as agent upon of State of NY (SSNY) on 12/24/12. Salembier Group, LLC. Arts of Org filed with Secy of State of NY (SSNY) commens w/ exp.; MPG Operations LLC, SSNY designated agent upon whom whom process against the LLC may Office location: NY County. SSNY on 11/9/12. Office location: NY New York, NY. Resumes to Box 0189, process may be served and shall be served. SSNY shall mail process designated as agent upon whom mail process against LLC to: 201 County. SSNY designated as agent 711 Third Ave, 3rd Floor, NY, NY 10017. to: The LLC, 54 W. 21 St., #905, NY, process may be served and shall Varick St, #1, NY, NY 10014. NY 10010. General Purposes. mail copy of process against LLC to: upon whom process may be served Principal business address: 234 served upon him/her is: 72 Madison and shall mail copy of process against Thompson St, #16, NY, NY 10012. Notice of Formation of Millstone Ave, 6th Fl, NY NY 10016. Principal LLC to principal business address: REAL ESTATE Purpose: any lawful act. Advisors LLC. Arts. of Org. filed business address: New York. The Salembier Group, LLC, 860 Secy. of State of NY (SSNY) on Purpose: any lawful act. United Nations Plaza, Apt. 27A, NY, NAME OF LLC: GIN&TONIC LLC. 1/7/13. Off. loc.: NY County. SSNY NY 10017. Purpose: any lawful act. COMMERCIAL ARTICLES OF ORG: FILED DEPT OF designated as agent of LLC upon Notice of Formation of AGMF, LLC. NOTICE OF FORMATION OF LIMITED Hudson Valley of New York STATE OF NY ON 12/24/12. OFFICE whom process against it may be Arts. of Org. filed with Secy. of State LIABILITY COMPANY. NAME: 128 1)Investment Properties, off market deals LOCATION: NY COUNTY. NY SECY. served. SSNY shall mail process to: of NY (SSNY) on 01/30/13. Office FOR 64 HOSPITALITY LLC. Articles 2)Development Sites, Apts, Retail, Flex, Mill Style OF STATE DESIGNATED AS AGENT 233 E. 17th St., Apt. 1, NY, NY location: NY County. SSNY desig- 3)Data, Call, Communications Ctr, 100Ksf Metro North nated as agent of LLC upon whom of Organization were filed with the 4)Pawling, NY 50K SF/2.7 Acres Shwrm, Wrhse OF LLC UPON WHOM PROCESS 10003. Purpose: any lawful activity. AGAINST IT MAY BE SERVED. process against it may be served. Secretary of State of New York 5)Cold Spring, NY / Restaurant / Bistro / Office (SSNY) on 01/30/13. Office location: 6)Metro North Train Stop Live-Work Artist/Service SECY. OF STATE SHALL MAIL A CC NOTICE OF FORMATION OF AVEC SSNY shall mail process to Wilson 7)Airport - 3850’ Paved Runway, near TSP & I84 TO: J CATTAN, MEMBER AT 37 W NEW YORK LLC. Arts of Org filed Elser Moskowitz Edelman & Dicker New York County. SSNY has been [email protected] 37TH ST., NEW YORK, NY 10018. with Secy of State of NY (SSNY) on LLP, Attn: Nicholas Caiazzo, 150 E. designated as agent of the LLC upon www.crproperties.com 845 485-3100 11/16/12. Office location: NY 42nd St., NY, NY 10017. Purpose: whom process against it may be Notice of Formation of AZUREPOINT County. SSNY designated as agent Any lawful activity. served. SSNY shall mail a copy of LLC. Arts. of Org. filed with Secy. of process to the LLC, 60 East 13th PUBLIC & LEGAL upon whom process may be served NOTICE OF FORMATION OF ID State of NY (SSNY) on 02/04/13. and shall mail copy of process Street, 8D, New York, New York 10003. NOTICES Office location: NY County. SSNY ATELIER LLC. Arts of Org filed with Purpose: For any lawful purpose. against LLC to principal business Secy of State of NY (SSNY) on NOTICE OF FORMATION of Jersey designated as agent of LLC upon address: 1545 BELL BLVD BAYSIDE Notice Of Formation of Ice Rink Events whom process against it may be 11/9/12. Office location: NY County. Mike’s 56th and 3rd LLC. Articles of NY 11360. Purpose: any lawful act. SSNY designated as agent upon Of New York LLC. Arts. of Org. filed Organization filed with Secretary of served. SSNY shall mail process to with the Sect’y of State of NY (SSNY) Corporation Service Co., 80 State St., Notice of Formation of BHUTAN whom process may be served and State of New York (SSNY) on 12/21/12. shall mail copy of process against on 3/15/12. Office location: NY Office location: NY County. SSNY Albany, NY 12207-2543. Purpose: INVESTORS LLC. Arts. of Org. filed County. SSNY designated as agent Any lawful activity. with Secy. of State of NY (SSNY) on LLC to: US Corp Agents, Inc. 7014 has been designated as an agent 13th Ave, Ste 202, Bklyn, NY 11228. upon whom process against LLC upon whom process against the LLC 01/28/13. Office location: NY County. may be served. SSNY shall mail NOTICE OF FORMATION OF Princ. office of LLC: 1350 Broadway, Principal business address: 17 may be served. The address to FREEDULGENCE LLC. Arts of Org Pershing Ave, Yonkers, NY 10705. process to LLC to: The LLC,c/o M.S. which SSNY shall mail a copy of any NY, NY 10018. SSNY designated as Rapaport, Esq., 6th Fl., 18 East 48th filed with Secy of State of NY (SSNY) agent of LLC upon whom process Purpose: any lawful act. process against the LLC is to: Peter on 1/3/13. Office location: NY Street, New York, N.Y. 10017. against it may be served. SSNY shall NOTICE OF FORMATION OF 101 Cancro, 2251 Landmark Place, County. SSNY designated as agent Purpose: any lawful act. mail process to Corporation Service West 78th LLC. Arts of Org filed with Manasquan, NJ 08736. Purpose: To upon whom process may be served Co., 80 State St., Albany, NY 12207- Secy of State of NY (SSNY) on NOTICE OF FORMATION of PPNY 10 engage in any lawful act or activity. and shall mail copy of process 2543. Purpose: Any lawful activity. 12/24/12. Office location: NY County. LLC (“LLC”.) Articles of Organization against LLC to principal business Notice is herby given that a license SSNY designated as agent upon filed with NYS Sec of State (“SSNY”) address: 73 Worth St, Ste 5D, NY, Notice of Formation of CWC HOLDINGS #1246187 for on premise liquor has whom process may be served and on 11/28/2012. Office location: New NY, 10013. Purpose: any lawful act. LLC. Arts. of Org. filed with Secy. of been applied for by the undersigned to shall mail copy of process against York County, NY. SSNY has been State of NY (SSNY) on 01/18/13. sell liquor at retail in a wine bar under LLC to: served upon him/her is: 72 designated as agent upon whom Notice of Qualification of 240 PARK Office location: NY County. SSNY the Alcoholic Beverage Control Law Madison Ave, 6th Fl, NY NY 10016. process against LLC may be served. AVENUE SOUTH OWNER LP. designated as agent of LLC upon at 26 Astor Place, New York, NY Principal business address: New SSNY shall mail a copy of process to Authority filed with Secy. of State of whom process against it may be 10003 for on premises consumption. York. Purpose: any lawful act. the LLC, 1420 Rocky Ridge Dr., Ste. NY (SSNY) on 01/24/13. Office served. SSNY shall mail process to Brio Bar Corp dba bahr che location: NY County. LP formed in 100, Roseville, CA 95661. Purpose: Douglas B. Seckendorf, 180 E. 82nd Notice of Qualification of LORELEI Own real estate and all lawful activity. Notice of Qualification of SLMC Delaware (DE) on 01/23/13. Princ. St., Ste., 5B, NY, NY 10028. PROPERTY LLC. Authority filed with Sumeru GP, L.L.C. Authority filed with office of LP: Mr. Yitzchak Tessler, Purpose: Any lawful activity. Secy. of State of NY (SSNY) on Notice of Qualification of NEBCO NY Dept. of State on 1/14/13. Office Tessler Developments, LLC, 461 Park 12/19/12. Office location: NY County. Insurance Services, LLC. App. for location: NY County. Princ. bus. addr.: Ave. South, NY, NY 10016. SSNY Notice of Qual. of Broome Street LLC formed in Delaware (DE) on Auth. filed Secy. of State of NY (SSNY) 2775 Sand Hill Rd., Ste. 100, Menlo designated as agent of LP upon Owner LLC, Auth. filed Sec’y of State 03/23/12. SSNY designated as agent on 1/7/13. Off. loc.: NY County. LLC Park, CA 94025. LLC formed in DE on whom process against it may be (SSNY) 11/27/12. Office loc.: NY of LLC upon whom process against formed in Delaware (DE) on 6/8/12. 12/21/12. NY Sec. of State designated served. SSNY shall mail process to County. LLC org. in DE 9/16/11. SSNY it may be served. SSNY shall mail SSNY designated as agent of LLC agent of LLC upon whom process the LP at the addr. of its princ. office. desig. as agent of LLC upon whom process to c/o Sandra Viana Esq., upon whom process against it may be against it may be served and shall Name and addr. of each general process against it may be served. Withers Bergman LLP, 430 Park Ave., served. SSNY shall mail process to: mail process to: c/o CT Corporation partner are available from SSNY. DE SSNY shall mail copy of proc. to Atlas 10th Fl., NY, NY 10022. DE addr. of c/o CT Corporation System, 111 8th System, 111 8th Ave., NY, NY 10011, addr. of LP: Corporation Service Co., Capital Group, 505 Fifth Ave., NY, NY LLC: c/o Corporation Service Co., Ave., NY, NY 10011, the registered regd. agent upon whom process may 2711 Centerville Rd., Ste. 400, 10017, the Reg. Agt. upon whom proc. 2711 Centerville Rd., Ste. 400, agent upon whom process may be be served. DE addr. of LLC: 1209 Wilmington, DE 19808. Arts. of Org. may be served. DE off. addr.: 2711 Wilmington, DE 19808. Arts. of Org. served. DE address of LLC: 1209 Orange St., Wilmington, DE 19801. filed with Secy. of State of DE, Div. of Centerville Rd., Ste. 400, Wilmington, filed with DE Secy. of the State, Div. Orange St., Wilmington, DE 19801. Cert. of Form. filed with DE Sec. of Corps., John G. Townsend Bldg., DE 19808. Cert. of Form. on file: of Corps., John G. Townsend Bldg., Arts. of Org. filed DE Secy. of State, State, 401 Federal St., Dover, DE 401 Federal St. - Ste. 4, Dover, DE SSDE, Townsend Bldg., Dover, DE 401 Federal St. - Ste. 4, Dover, DE 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: all lawful purposes. 19901. Purpose: Any lawful activity. 19901. Purp.: any lawful activities. 19901. Purpose: Any lawful activity. 19901. Purpose: all lawful purposes.

20 | Crain’s New York Business | February 18, 2013 TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM PUBLIC & LEGAL NOTICES Notice of formation of The Chou Notice is hereby given a license, NOTICE OF FORMATION OF LIMITED Notice of Qualification of The Marketing Notice of Qualification of SYNOWLEDGE, Organization Holdings LLC. number 1268841, for tavern wine has LIABILITY COMPANY. LVL-US, LLC,. Division, LLC. App for Authority filed LLC. Authority filed with Secy of Articles of Organization filed with the been applied for by the undersigned Articles of Organization were filed with with the Secy of State of NY (SSNY) State (SSNY) on 01/15/2013. Office Secretary of State of New York (SSNY) to sell wine and beer at retail in a the Secretary of State of New York on 1/4/13. Office loc: New York location: New York County. LLC on 06/20/2012. Off. loc.: NY County. Restaurant under the Alcoholic (SSNY) 12/6/12. Office location: NY County. LLC formed in DE on 6/12/09. formed in Delaware (DE) on 09/29/06. SSNY designated as agent of LLC Beverage Control Law at 235 West County. SSNY has been designated SSNY has been designated as an SSNY designated as agent of LLC upon whom process against it may be 46th Street, New York, NY 10036 for as agent of the LLC upon whom agent upon whom process may be upon whom process against it may be served. SSNY shall mail process to: The on premises consumption. PH Cafe process against it may be served served and shall mail a copy of any served. SSNY shall mail process to: LLC, 140 Riverside Blvd., #319 NY, NY LLC and Corso Coffee 46 and shall mail a copy of process to process against the LLC served upon c/o National Registered Agents, Inc., 10069. Purpose: any lawful activity. Management, LLC as manager. LVL-US, LLC, 708 Third Avenue, it to c/o Corporation Service Company, 111 Eighth Ave., 13th floor, New York, 20th fl., New York, New York, 10017, 80 State Street, Albany, NY 12207- NY 10011. National Registered Agents, Notice of Formation of Notice of formation of Archipelago attention Rubin Ferziger. Purpose: 2543. Princ address of LLC: 1619 Inc. is the registered agent as well. FactoryOutletStore LLC. Arts. of Org. Real Estate, LLC. Arts of Org Filed for any lawful purpose. Broadway, FL 9, New York, NY 10019. Address required to be maintained in filed Secy. of State of NY (SSNY) on with Secy Of State of NY on 1/8/13. home jurisdiction: 160 Greentree Drive, METTY PROPERTIES LLC, a domestic DE address of LLC: c/o Corporation 6/22/12. Office location: NY County. Office Location: NY County. SSNY Ste.101, Dover, Delaware 19904. Arts. LLC, Arts. of Org. filed with the SSNY Service Company, 2711 Centerville SSNY designated as agent of LLC designated as agent upon whom Road, Suite 400, Wilmington, DE Of Org filed with DE Secy of State, upon whom process against it may process may be served and shall on 12/31/12. Office location: New Division of Corporations, 401 Federal York County. SSNY is designated as 19808. Cert of Formation of LLC filed be served. SSNY shall mail process mail copy of process against LLC to on 6/12/09 with the Secy of State of St., Suite 4, Dover, DE 19901. Purpose: to: c/o The LLC, 1410 Broadway, principal business address: 258 agent upon whom process against To engage in any activity for which the LLC may be served. SSNY shall DE loc at: Div of Corps, John G 20th Fl., NY, NY 10018. Purpose: any Riverside Drive, NY, NY 10025. Townsend Bldg, 401 Federal Street – LLCS may be formed under NY law. lawful activity. Purpose: any lawful act. mail process to: Cohen & Frankel, LLP, 11 E. 44th St., Ste. 1800, NY, Ste 4, Dover, DE 19901. Purpose of NOTICE OF FORMATION OF Cabin Notice of Formation of A2A Notice of Formation of BIEN CUIT - NY 10017. General Purposes. LLC: any lawful activity. Of Pockets In The Sky, LLC. Arts of CHRISTOPHER STREET, LLC. Arts. Org filed with Secy of State of NY CONSULTING LLC. Arts. of Org. filed FIX IT SPOFFY LLC, a domestic LLC, NOTICE OF FORMATION OF fuelsoul with Secy. of State of NY (SSNY) on of Org. filed with Secy. of State of NY (SSNY) on 11/13/12. Office location: NY (SSNY) on 01/16/13. Office location: Arts. of Org. filed with the SSNY on group LLC. Arts of Org filed with Secy County. SSNY designated as agent 01/08/13. Office location: NY County. 12/5/12. Office location: New York of State of NY (SSNY) on 12/27/12. SSNY designated as agent of LLC NY County. SSNY designated as upon whom process may be served agent of LLC upon whom process County. SSNY is designated as Office location: NY County. SSNY and shall mail copy of process upon whom process against it may agent upon whom process against designated as agent upon whom be served. SSNY shall mail process against it may be served. SSNY shall against LLC to principal business mail process to the LLC, 35 the LLC may be served. SSNY shall process may be served and shall address: 146 W 57th St., #32L, NY, to The Offices of Constantin, 575 mail process to: Jeremy Spofford, mail copy of process against LLC to: Madison Ave., 25th Fl., NY, NY Christopher St., NY, NY 10014. NY 10019. Purpose: any lawful act. Purpose: Any lawful activity. 215 E. 79th St., 5D, NY, NY 10075. 101 N. Brand Blvd.; 11th fl; Glendale, 10022. Purpose: Any lawful activity. General Purposes. CA 91203. Principal business Notice of Formation of ARL 2013 LLC. address: 425 E 79th St; Ste 2E; NY, Notice of Formation of DKC STUDIO, NOTICE OF FORMATION OF Noble KCT ABSTRACT LLC, Arts. of Org. Arts. of Org. filed with NY Dept. of NY 10075. Purpose: any lawful act. LLC. Arts. of Org. filed with Secy. of Grains NYC LLC. Arts of Org filed filed with SSNY on 12/13/12. Off. Loc.: State on 1/3/13. Office location: NY with Secy of State of NY (SSNY) on County. Sec. of State designated State of NY (SSNY) on 09/19/12. New York County. SSNY designated NOTICE OF FORMATION OF FNK 11/27/12. Office location: NY County. agent of LLC upon whom process Office location: NY County. SSNY as agent of LLC upon whom Enterprises LLC. Arts of Org filed SSNY designated as agent upon whom against it may be served and shall designated as agent of LLC upon process against it may be served. with Secy of State of NY (SSNY) on process may be served and shall mail mail process to: c/o CT Corporation whom process against it may be SSNY shall mail a copy of process 1/16/13. Office location: NY County. copy of process against LLC to: c/o System, 111 8th Ave., NY, NY 10011, served. SSNY shall mail process to to: The LLC, 28 Elizabeth St., #200, SSNY designated as agent upon the LLC, 1500 Lexington Ave APT regd. agent upon whom process Corporation Service Co., 80 State St., New York, NY 10013. Purpose: to whom process may be served and 5B, NY, NY 10029. Principal business may be served. Purpose: any lawful Albany, NY 12207, regd. agent upon engage in any lawful act. shall mail copy of process against address: 313 E 95th St, Ste 302, NY, activity. whom and at which process may be LLC to: PO Box 61, Shrub Oak, NY NY 10128. Purpose: any lawful act. LITTLE BE DESIGN LLC, a domestic served. Purpose: Any lawful activity. 10588-0061. Principal business Notice of Formation of MCH ARTS LLC, Arts. of Org. filed with the SSNY ENRIQUE HERNANDEZ MD CARDIAC address: 242 E 83rd St, NY, NY LLC. Arts. of Org. filed Secy. of State Notice of formation of 810-VE Laight, on 12/24/12. Office location: New York & VASCULAR SERVICES PLLC, a 10028. Purpose: any lawful act. of NY (SSNY) on 1/8/13. Off. loc.: NY LLC. Art of Org filed with the Sec of County. SSNY is designated as agent Prof. LLC. Arts. of Org. filed with the County. SSNY designated as agent State of NY (SSNY) on 12/18/12. upon whom process against the LLC SSNY on 09/26/2012. Office loc: NY GLN NEW YORK LLC, a domestic of LLC upon whom process against Office located in NY Co. SSNY has may be served. SSNY shall mail County. SSNY has been designated as LLC, Arts. of Org. filed with the SSNY it may be served. SSNY shall mail been designated for service of process to: The LLC, c/o Tsubura agent upon whom process against it on 12/13/12. Office location: New process to: c/o Handro Management process. SSNY shall mail copy of Wilson, 611 Broadway, Ste. 508, NY, may be served. SSNY shall mail York County. SSNY is designated as Group LLC, 561 Seventh Ave., NY, any process to the LLC c/o James E. NY 10012. General Purposes. agent upon whom process against Bishop, 902 Clint Moore Road, Ste. process to: 41 River Terrace, Room NY 10018, Attn: Scott D. Galin. NOTICE OF FORMATION OF RE Music the LLC may be served. SSNY shall 220, Boca Raton, Florida 33487. 3605, NY, NY 10282. Purpose: To Purpose: any lawful activity. LLC. Arts of Org filed with Secy of mail process to: The LLC, c/o Purpose: any lawful purpose. Practice The Profession Of Medicine. State of NY (SSNY) on 1/15/13. Office Elisabeth M. Kovac, Esq., 90 Park SCOTT SILVERSTEIN MANAGEMENT Notice of Formation of My My Love location: NY County. SSNY designated Ave., FL. 18, New York, NY 10016. LLC Articles of Org. filed NY Sec. of GLM SAN DIEGO, LLC, a domestic LLC. Arts. of Org. filed with Secy. of as agent upon whom process may General Purposes. State (SSNY) 12/11/12. Office in NY LLC, Arts. of Org. filed with the SSNY State of NY (SSNY) on 1/10/13. be served and shall mail copy of Co. SSNY desig. agent of LLC upon on 12/19/12. Office location: New Office location: NY County. SSNY NOTICE OF FORMATION OF process against LLC to principal whom process may be served. SSNY York County. SSNY is designated as designated as agent of LLC upon Psychotherapy Space LLC. Arts of business address:168 E 7th St, Ste 2A, shall mail copy of process to One agent upon whom process against whom process against it may be Org filed with Secy of State of NY NY, NY 10009. Purpose: any lawful act. South Rd., Port Washington, NY the LLC may be served. SSNY shall served. SSNY shall mail process to: (SSNY) on 1/18/12. Office location: 11050. Purpose: Any lawful purpose. mail process to: Maidman and The LLC, 7 E 47th St., NY, NY 10017, NOTICE OF FORMATION OF AVL NY County. SSNY designated as Principal business location: 260 W. Mittelman, LLP, 70 E. 55th St., NY, also the principal office. Purpose: Piano Studio LLC. Arts of Org filed agent upon whom process may be 39TH St., NY, NY 10018. NY 10022-3222. General Purposes. any lawful activities. with Secy of State of NY (SSNY) on served and shall mail copy of Latest date to dissolve 12/31/2042. 12/10/12. Office location: NY County. process against LLC to principal Notice of Formation of 500 FTW LLC. NOTICE OF FORMATION OF KFD business address: 39 E 78th St, NY, Arts of Org filed with Secy of State NOTICE OF FORMATION OF SSNY designated as agent upon whom Public Relations, LLC. Arts of Org NY 10075. Purpose: any lawful act. of NY (SSNY) on 01/04/13. Office FRANZISKA FOX LLC. Arts of Org process may be served and shall mail filed with Secy of State of NY (SSNY) copy of process against LLC to: US location: New York County. SSNY filed with Secy of State of NY (SSNY) Notice of Formation of MAH Associates, on 11/13/12. Office location: NY Corp Agents, lnc., 7014 13th Ave, designated as agent of LLC upon whom on 1/9/13. Office location: NY County. LLC. Arts. of Org. filed with NY Dept. County. SSNY designated as agent Ste 202, Bklyn, NY 11228. Principal process against it may be served. SSNY designated as agent upon of State on 5/15/12. Office location: upon whom process may be served business address: 77 Allen St, Ste 2A, N Y, SSNY shall mail process to: 500 FTW whom process may be served and NY County. Sec. of State designated and shall mail copy of process NY 10002. Purpose: any lawful act. LLC, 521 Fifth Avenue, Suite 1804, shall mail copy of process against against LLC to: Corp Service Co., agent of LLC upon whom process New York, NY 10175. Purpose: To LLC to principal business address: 80 State St., Albany, NY 12207. JENNIFER HARMAN SMITH, against it may be served and shall own the property located at 500 Fort 182 MULBERRY ST APT 5, NY, NY Purpose: any lawful act. ARCHITECT, PLLC Articles of Org. mail process to: c/o Mintz & Gold LLP, Washington Avenue, New York, NY. 10012. Purpose: any lawful act. filed NY Sec. of State (SSNY) 1/4/13. 470 Park Ave. South, 10th Fl. North, NOTICE OF FORMATION OF LIMITED Office in NY Co. SSNY desig. agent NY, NY 10016, principal business NOTICE OF FORMATION OF MELISSA NOTICE OF FORMATION OF LIABILITY COMPANY. NAME: of LLC upon whom process may be address. Purpose: any lawful activity. A DOFT MD PLLC. Arts of Org filed MedGlobal Development, LLC. Arts PROTOTYPE ENTERTAINMENT LLC. served. SSNY shall mail copy of with Secy of State of NY (SSNY) on of Org filed with Secy of State of NY Articles of Organization were filed process to 330 E. 71st St., Apt. 5C, Notice is hereby given that a license, 10/23/12. Office location: NY County. (SSNY) on 12/27/12. Office location: with the Secretary of State of New NY, NY 10021. Purpose: To practice number 1268858, for beer & wine SSNY designated as agent upon NY County. SSNY designated as York (SSNY) on 01/14/13. Office the profession of Architecture. has been applied for by Legend whom process may be served and agent upon whom process may be location: New York County. SSNY has Upper West LLC to sell beer & wine shall mail copy of process against served and shall mail copy of been designated as agent of the LLC Notice of Formation of DAMES, LLC. at retail in a restaurant under the PLLC to: 1330 FIRST AVE, PH 1, NY, process against LLC to: 7014 13th upon whom process against it may be Arts. of Org. filed with Secy. of State Alcoholic Beverage Control Law at NY 10021. Principal business Ave, Ste 202, Bklyn, NY 11228. served. SSNY shall mail a copy of of NY (SSNY) on 12/24/12. Office 258 W 109 St, NY, NY 10025 for on address: 655 PARK AVE, NY, NY Principal business address: 1562 process to the LLC, 245 Fifth Avenue, location: NY County. SSNY desig- premises consumption. Applicant: 10065. Purpose: any lawful act. First Ave #388, NY, NY 10028. Suite 1001, New York, New York 10016. nated as agent of LLC upon whom Legend Upper West LLC Purpose: any lawful act. Purpose: For any lawful purpose. process against it may be served. Notice of Qualification of CRT CAPITAL SSNY shall mail process to the LLC, Notice of Qualification of DLICM, LLC. GROUP LLC. Authority filed with Secy. Notice of Qualification of Colin Cowie Notice of Qualification of AECOM 425 E. 58th St., Apt. 47A, NY, NY Authority filed with Secy. of State of NY of State of NY (SSNY) on 01/16/13. Celebrations, LLC. Authority filed with Capital Management, LLC. Authority 10022. Purpose: Any lawful activity. (SSNY) on 01/08/13. Office location: Office location: NY County. LLC Secy. of State of NY (SSNY) on 1/9/13. filed with Secy. of State of NY (SSNY) NY County. LLC formed in Delaware formed in Delaware (DE) on 02/01/12. Office location: NY County. LLC on 01/30/13. Office location: NY Notice of Formation of THE PIONEER (DE) on 01/07/13. SSNY designated Princ. office of LLC: 1633 Broadway, formed in Delaware (DE) on 12/14/12. County. LLC formed in Delaware (DE) SPORTS, LLC, a domestic Limited as agent of LLC upon whom process 27th Fl., NY, NY 10019. SSNY SSNY designated as agent of LLC on 01/28/13. SSNY designated as Liability Company. Arts of Org filed against it may be served. SSNY shall designated as agent of LLC upon upon whom process against it may be agent of LLC upon whom process with Secretary of State of NY on mail process to the LLC, Attn: whom process against it may be served. SSNY shall mail process to: against it may be served. SSNY shall 12/13/2012. Office location: Nassau Corporation Service Co., 80 State served. SSNY shall mail process to David Berke, c/o Colin Cowie mail process to c/o Corporation County. The street address is: 2370 St., Albany, NY 12207-2543, regd. c/o Corporation Service Co., 80 Celebrations, 568 Broadway, Ste. 705, Service Co. (CSC), 80 State St., Elk Ct., N. Bellmore, NY 11710. agent upon whom and at which process State St., Albany, NY 12207-2543. NY, NY 10012. Address to be Albany, NY 12207-2543. DE addr. of SSNY has been designated as agent may be served. DE addr. of LLC: 2711 DE addr. of LLC: 2711 Centerville maintained in DE: 615 South DuPont LLC: c/o CSC, 2711 Centerville Rd., of the LLC upon whom process Centerville Rd., Ste. 400, Wilmington, Rd., Ste. 400, Wilmington, DE 19808. Hwy, Dover, DE 19901. Arts of Org. Ste. 400, Wilmington, DE 19808. Arts. against it may be served. SSNY shall DE 19808. Arts. of Org. filed with DE Arts. of Org. filed with DE Secy. of filed with the DE Secretary of State, of Org. filed with Secy. of State of DE, mail process served to the LLC at Secy. of State, John G. Townsend State, DE Div. of Corps., 401 Federal 401 Federal St., Dover, DE 19901. 401 Federal St., Ste. 4, Dover, DE street address. Purpose: any lawful Bldg., 401 Federal St., Dover, DE St., Ste. 4, Dover, DE 19901. Purpose: any lawful activities. 19901. Purpose: Any lawful activity. act of activity. 19901. Purpose: Any lawful activity. Purpose: Any lawful activity.

February 18, 2013 | Crain’s New York Business | 21 with lawsuits.Complicating matters, answering to both ADA rules and Wheelchair suits harass UWS merchants the city’s Landmarks Preservation Commission can be a Catch-22. Thomas Khateeb, who owns Florida attorney facing $30,000 in legal fees. “I may fight back. Indeed, merchants are looking for low-hanging fruit,” said neighborhood stalwart Thomas put my business up for sale,”he said. collaborating to mount a unified de- labor and employment attorney Peter Drugs on Columbus Avenue and targets owners, who “I can’t afford to pay that.” fense against the attorneys, whom Panken, who spoke to the concerned West 68th Street, said he installed a face big legal fees Mr. Parliaros is one of numerous they accuse of extortion. business owners. mobile ramp and a bell in 2004 after Upper West Side merchants target- Installing a temporary ramp costs receiving a complaint. But he still ed by Ben-Zion Bradley Weitz, a Unified front about $120, Mr. Panken said. The got sued. “It’s a landmark building, BY ANNIE KARNI Florida attorney raking in hefty fees “The best idea is that [merchants] problem is the legal fees. “You will and they’re saying I can’t have a per- by scouring New York City streets band together and try to get before hear fees like $10,000 or $20,000,”he manent ramp,” he said at the meet- About once a week, a customer in a for non-ADA-compliant store- one judge,” said Barbara Adler, exec- said.“And what has the lawyer done? ing. A large number of storefronts wheelchair will ring the bell at fronts. The plaintiffs make about utive director of the Columbus He has a standard-form complaint on the Upper West Side are in his- Gotham Food, a deli on Columbus $500 per suit. The real cost to mer- Avenue Business Improvement Dis- and he has taken two paragraphs to toric 19th-century buildings. Avenue. Owner Nicholas Parliaros chants are the tens of thousands of trict, which organized a meeting last describe the particular store involved. Even advocates for the disabled will answer the door and pull out his dollars in fees the lawyers demand week for businesses to speak with at- It’s an hour of work.” were on hand last week to encourage temporary foldable ramp. from noncompliant business owners torneys who could help. In a neighborhood survey, Ms. business owners to fight back. The But his makeshift system for under the civil-rights law. One judge could review the law- Adler said her group found 75 fees were “extortive behavior by this serving disabled customers makes Mr. Weitz works streets across suits and see that they are all copied blatant violations within a 15-block attorney,” said James Weisman, him an easy mark for aggressive at- the city. Since October 2009, he from the same form, Ms. Adler said, radius.“These businesses are sitting general counsel for the United torneys looking to sue businesses has sued almost 200 businesses in suggesting that Mr.Weitz does noth- ducks,” she said. Spinal Association. “They’re com- that are not compliant with the the state, mostly in Manhattan, ac- ing more than change the names and Many businesses along the com- pletely undermining what we’re do- Americans With Disabilities Act. cording to The New York Times. addresses on his court documents. mercial stretch of Columbus Avenue ing as a disability group. If you don’t Mr. Parliaros said he was But along Columbus Avenue, “These lawyers find someone to between West 65th and West 87th band together, you’re going to get slammed with a lawsuit and is now business owners are attempting to be a plaintiff and go down the streets streets have already been saddled picked off one by one.” Ⅲ

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM PUBLIC & LEGAL NOTICES NOTICE OF QUALIFICATION of Notice of Qualification of HOLLY PUFF Notice of Qualification of BREF Notice of Qualification of BR PRIVATE NOTICE OF QUALIFICATION OF Madi Kemosabe Records, LLC. Authority DESIGNS, LLC. Authority filed with BAHAMAS MANAGEMENT, LLC. EQUITY 2013 LLC. Authority filed Diaz / Tinyogre Touring, LLC. Authority filed with Secy of State of NY (SSNY) Secy. of State of NY (SSNY) on Authority filed with Secy. of State of with Secy. of State of NY (SSNY) on filed with Secy of State of NY (SSNY) on 11/27/12. Office location: NY 01/24/13. Office location: NY County. NY (SSNY) on 12/20/12. Office 02/07/13. Office location: NY County. on 2/24/12. Office location: NY County. LLC formed in DE on 11/22/11. LLC formed in Massachusetts (MA) location: NY County. LLC formed in LLC formed in Delaware (DE) on County. LLC formed in DE on 8/8/11. SSNY designated agent upon whom on 03/26/04. Princ. office of LLC: 180 Delaware (DE) on 12/12/11. Princ. 02/04/13. Princ. office of LLC: 630 SSNY designated agent upon whom process may be served and shall E. 79th St., Apt.9D, NY, NY 10075. office of LLC: 200 Vesey St., 11th Fl., Fifth Ave., Ste. 2100, NY, NY 10111. process may be served and shall mail copy of process against LLC to: SSNY designated as agent of LLC NY, NY 10281. SSNY designated as SSNY designated as agent of LLC mail copy of process against LLC to: 80 State St Albany, NY 12207-2543. upon whom process against it may be agent of LLC upon whom process upon whom process against it may be 276 Fifth Ave Ste 606 NY, NY 10001. Principal business address: 9111 served. SSNY shall mail process to against it may be served. SSNY shall served. SSNY shall mail process to Principal business address: 276 Fifth Sunset Blvd., Los Angeles, CA 90069. Holly Puff Kennedy at the princ. office mail process to c/o Corporation the LLC at the princ. office of the LLC. Ave, Ste 604, NY, NY 10001. DE DE address of LLC: 2711 Centerville of the LLC. MA addr. of LLC: c/o Day Service Co. (CSC), 80 State St., DE addr. of LLC: c/o Corporation address of LLC: 2711 Centerville Rd, Rd, Ste 400, Wilmington, DE 19808. Pitney LLP, One International Pl., Albany, NY 12207-2543. DE addr. of Service Co., 2711 Centerville Rd., Ste. Ste 400, Wilmington, DE 19808. Cert. Cert of LLC filed with Secy of State Boston, MA 02110. Arts. of Org. filed LLC: c/o CSC, 2711 Centerville Rd., 400, Wilmington, DE 19808. Arts. of of LLC filed with Secy of State of DE of DE located: PO Box 898, Dover, with Secy. of the Commonwealth Wilmington, DE 19808. Arts. of Org. Org. filed with Secy. of the State of located: PO Box 898, Dover, DE DE 19903. Purpose: any lawful act. Corps. Div., McCormack Bldg., One filed with DE Secy. of State, John G. DE, Office of the Secy. of State, Div. 19903. Purpose: any lawful act. Notice of Qualification of Lead Edge Ashburton Pl., 17th Fl., Boston, MA Townsend Bldg., 401 Federal St., of Corps., John G. Townsend Bldg., Notice of Qualification of BLDG Capital Partners, LLC. App. for Auth. 02108. Purpose: Any lawful activity. Ste. 4, Dover, DE 19901. Purpose: 401 Federal St., Dover, DE 19901. CANAL LLC. App. for Auth. filed Any lawful activity. Purpose: Any lawful activity. filed Secy. of State of NY (SSNY) on Notice of Formation of IMG Models Secy. of State of NY (SSNY) on 2/5/13. Off. loc.: NY County. LLC 1234, LLC. Arts. of Org. filed with NY Notice of Formation of IMG Performers NOTICE OF FORMATION OF LIMITED 11/28/12. Off. loc.: NY County. LLC formed in Delaware (DE) on 10/23/12. Dept. of State on 12/26/12. Office 1234, LLC. Arts. of Org. filed with NY LIABILITY COMPANY. NAME: BRH-1 formed in Delaware (DE) on 7/9/12. SSNY designated as agent of LLC location: NY County. Princ. bus. addr.: Dept. of State on 12/26/12. Office HOLDINGS, LLC. Articles of SSNY designated as agent of LLC upon whom process against it may 1360 E. 9th St., Cleveland, OH 44114. location: NY County. Princ. bus. addr.: Organization were filed with the upon whom process against it may be served. SSNY shall mail process Sec. of State designated agent of 1360 E. 9th St., Cleveland, OH 44114. Secretary of State of New York be served. SSNY shall mail process to: 405 Lexington Ave., 32F, NY, NY LLC upon whom process against it Sec. of State designated agent of LLC (SSNY) on 01/08/13. Office location: to: c/o 417 Fifth Ave., 4th Fl., NY, NY 10174, Attn: Giles S. Eyre, the regis- may be served and shall mail process upon whom process against it may New York County. SSNY has been 10016. DE address of LLC: c/o tered agent upon whom process may to: c/o CT Corporation System, 111 be served and shall mail process to: designated as agent of the LLC upon United Corporate Services, Inc., 874 be served. DE address of LLC: 1209 8th Ave., NY, NY 10011, regd. agent c/o CT Corporation System, 111 8th whom process against it may be Walker Road, Ste. C, Dover, DE Orange St., Wilmington, DE 19801. upon whom process may be served. Ave., NY, NY 10011, regd. agent served. SSNY shall mail a copy of 19904. Arts. of Org. filed DE Secy. of Cert. of Form. filed DE Secy. of State, Purpose: all lawful purposes. upon whom process may be served. process to the LLC, 60 East 88th State, Townsend Bldg., Dover, DE 401 Federal St., Dover, DE 19901. Notice of Qual. of 245 Owner LLC, Purpose: all lawful purposes. Street, Lower Level, New York, New 19901. Purpose: any lawful activity. Purpose: any lawful act or activity. York 10128. Purpose: For any lawful Auth. filed Sec’y of State (SSNY) Notice of Qualification of Trian SPV VII-L, Notice of Qual. of 285 Madison purpose. NOTICE OF FORMATION OF LIMITED 11/5/12. Office loc.: NY County. LLC LLC. Authority filed with NY Dept. of Funding LLC, Auth. filed Sec’y of LIABILITY COMPANY. NAME: MINDY org. in DE 10/15/12. SSNY desig. as State on 1/8/13. Office location: NY Notice of Formation of Paper Cinema State (SSNY) 11/29/12. Office loc.: SCHWARTZ COACHING LLC. agent of LLC upon whom process County. LLC formed in DE on 12/31/12. LLC. Arts. of Org filed with NY NY County. LLC org. in DE 11/27/12. Articles of Organization were filed against it may be served. SSNY shall NY Sec. of State designated agent of Secretary of State (SSNY) on SSNY desig. as agent of LLC upon with the Secretary of State of New York mail copy of proc. to NRAI, 111 LLC upon whom process against it 12/20/2012.Office location: New York whom process against it may be (SSNY) on 12/24/12. Office location: Eighth Ave., NY, NY 10011. DE off. may be served and shall mail process County. Principal Office of LLC: 548 served. SSNY shall mail copy of New York County. SSNY has been addr.: 160 Greentree Dr., Ste. 101, to the principal business addr.: 280 West 28th Street-Suite 336, New proc. to NRAI, 111 Eighth Ave., NY, designated as agent of the LLC upon Dover, DE 19904. Cert. of Form. on Park Ave., 41st Fl., NY, NY 10017. DE York, NY 10001. SSNY designated NY 10011, the Reg. Agt. upon whom whom process against it may be file: SSDE, Townsend Bldg., Dover, DE addr. of LLC: Corporation Service as agent of LLC upon whom process proc. may be served. DE off. addr.: served. SSNY shall mail a copy of 19901. Purp.: any lawful activities. Co., 2711 Centerville Rd., Ste. 400, against it may be served. SSNY 160 Greentree Dr., Ste. 101, Dover, process to the LLC, c/o Melvin B. Notice of Qualification of Group Sales Wilmington, DE 19808. Cert. of shall mail process to the LLC at the DE 19904. Cert. of Form. on file: Berfond, Esq., 277 Broadway, Suite Box Office, LLC. App for Authority Form. filed with DE Sec. of State, address of its principal office SSDE, Townsend Bldg., Dover, DE 810, New York, New York 10007. filed with the Secy of State of NY Townsend Bldg., Dover, DE 19901. address. Purpose: any lawful activity. 19901. Purp.: any lawful activities. Purpose: For any lawful purpose. (SSNY) on 11/30/12. Office loc: New Purpose: any lawful activity. Notice of Qualification of HJS Notice of Qualification of APOLLO Notice of Qualification of Broad Street York County. LLC formed in DE on Notice of Qualification of LOGGERHEAD Management GP LLC. Authority filed MANAGEMENT (AOP) VIII, LLC. Energy Partners Offshore Holding - B, 3/30/12. SSNY has been designated INVESTMENTS, L.L.C. Authority filed with Secy. of State of NY (SSNY) on Authority filed with Secy. of State of NY L.P. App. for Auth. filed Secy. of State as an agent upon whom process may with Secy. of State of NY (SSNY) on 01/28/2013. Office location: NY (SSNY) on 02/08/13. Office location: of NY (SSNY) on 5/17/12. Off. loc.: NY be served and shall mail a copy of any 01/15/13. Office location: NY County. County. LLC formed in Delaware (DE) NY County. LLC formed in Delaware County. LP formed in Cayman Islands process against the LLC served upon LLC formed in Delaware (DE) on on 12/21/2012. SSNY designated as (DE) on 02/07/13. Princ. office of LLC: (CI) on 4/4/12. SSNY designated as it to c/o Corporation Service Company, 07/24/12. Princ. office of LLC: 350 agent of LLC upon whom process 9 W. 57th St., NY, NY 10019. SSNY agent of LP upon whom process 80 State Street, Albany, NY 12207- Park Ave., 11th Fl., NY, NY 10022. against it may be served. SSNY shall designated as agent of LLC upon whom against it may be served. SSNY shall 2543. Princ address of LLC: 729 7th SSNY designated as agent of LLC mail process to c/o Maples Fiduciary process against it may be served. mail process to: 200 West St., NY, NY Ave, FL 7, New York, NY 10019. DE upon whom process against it may Services (Delaware) LLC, 4001 SSNY shall mail process to the LLC, 10282-2198. CI address of LP: Maples address of LLC: c/o Corporation be served. SSNY shall mail process to Kennett Pike, Suite 302, Wilmington, Attn: John J. Suydam at the princ. Corporate Service Ltd., PO Box 309, Service Company, 2711 Centerville c/o Corporation Service Co. (CSC), DE 19807. DE address of LLC: c/o office of the LLC. DE addr. of LLC: Ugland House, Grand Cayman, KY1- Road, Suite 400, Wilmington, DE 80 State St., Albany, NY 12207-2543. Maples Fiduciary Services (Delaware) c/o Corporation Service Co., 2711 1104, CI. Name/address of each 19808. Cert of Formation of LLC filed DE addr. of LLC: c/o CSC, 2711 LLC, 4001 Kennett Pike, Ste 302, Centerville Rd., Ste. 400, Wilmington, genl. ptr. available from SSNY. Cert. on 3/30/12 with the Secy of State of Centerville Rd., Ste. 400, Wilmington, Wilmington, DE. Arts. of Org. filed New Castle Cnty., DE 19808. Arts. of of LP filed Registrar of Exempted DE loc at: Div of Corps, John G DE 19808. Arts. of Org. filed with DE with Secy. of State, of the State of Org. filed with The Secy. of State of LPs, Elizabethan Sq., 4th Fl, Phase Townsend Bldg, 401 Federal Street – Secy. of State, Div. of Corps., 401 DE, Div. of Corps., 401 Federal St., DE, Dept. of State, Div. of Corps., Four, George Town, Grand Cayman, Ste 4, Dover, DE 19901. Purpose of Federal St., Dover, DE 19901. Ste. 4, Dover, DE 19901. Purpose: John Townsend Bldg., Dover, DE CI. Purpose: any lawful activity. LLC: any lawful activity. Purpose: Any lawful activity. Any lawful activity. 19901. Purpose: Any lawful activity.

22 | Crain’s New York Business | February 18, 2013 FOR THE RECORD

on Feb. 22 for baby food, infant formula Group. The sublandlord, H. Herzfeld, 244,045 shares. and snack items for the Administration was represented by Alan S. Cohen and ABOUT THIS SECTION for Children’s Services. Bid documents Mark Tergesen of ABS Partners Realty. ● MasterCard Inc. (MA) FOR THE RECORD is a weekly listing of information from the public record that can be downloaded from City Record The asking rent was $150 per square MasterCard Foundation sold 59,360 can help businesspeople in the New York area find opportunities, potential Online at http://a856-internet.nyc.gov/ foot. shares of common stock at prices nycvendoronline/home.asp, or they can ranging from $515.90 to $523.38 new clients and updates on competitors. be requested via email at dcasdmssbids ● Dee Mark Inc. signed a lease for 900 between Jan. 17 and Jan. 24, in a To ask questions or get more information on this section, contact Crain’s @dcas.nyc.gov, by telephone at (212) square feet at 20 John St. The Asian transaction worth $30,794,116. Between research department at [email protected]. 669-8610 or by fax at (212) 669-7603.To fusion restaurant group behind eateries Jan. 25 and Jan. 30, it sold 47,488 shares make inquiries, contact Edith Fezzuoglio such as Spot Dessert Bar, Ember Room of common stock at prices ranging from at (212) 669-8589 or efezzuo@dcas and Room Service will open a quick- $515.38 to $519.37, in a transaction $10 million and estimated assets of .nyc.gov. service restaurant. The tenant was worth $24,574,090. It now directly owns NEW IN TOWN $1,000,001 to $10 million. The creditors represented by Max Dylan Lu of M 12,450,100 shares. with the largest unsecured claims are the ● Department of Education Properties. The landlord, the Malachite Companies that would like to have details New York City Department of Finance, Seeks competitive sealed bids by 4 p.m. Group, was represented in-house by ● American Express Co. (AMX) of openings published should submit owed $76,163.42; 151 W. 17th St. on Feb. 28 for furnishing and delivering Melody Malekan. The asking rent was Louise Parent, executive vice president descriptions following this format to Condominium, owed $56,111.03; and a solar-energy electric-car program kit $160 per square foot. and general counsel, exercised options [email protected], with Vincent Petraro, owed $14,419.48. to the School of Cooperative Technical on 107,091 shares of common stock at “New in Town” in the subject line. Education. To make inquiries or obtain $16.71 on Jan. 24, in a transaction ● The Hotel Networks Inc. bid documents, contact the vendor STOCK TRANSACTIONS worth $1,789,491. On the same day, ● Artifact 551 Fifth Ave., Manhattan hotline at (718) 935-2300 or she sold 224,042 shares of common 155 Freeman St., Brooklyn Filed for Chapter 11 bankruptcy [email protected] Following are recent insider transactions at stock at prices ranging from $59.18 to The boutique opened in Greenpoint. protection on Jan. 27. The filing cites bid opening will take place on March 1 New York’s largest publicly held companies $59.24, in a transaction worth The shop sells offbeat, vintage and estimated liabilities of $100,000,001 to at 11 a.m. filed with the Securities and Exchange $13,266,884. She now directly holds locally made clothing and gifts. $500 million and estimated assets of Commission by executives and major 57,171 shares. $100,000,001 to $500 million. The ● Taxi Licensing Commission shareholders. Listings are in order of ● Bon! Asian Spice creditors with the largest unsecured Requests proposals by 2 p.m. on May 8 transaction value.The information was Thomas Schick, executive vice 140 St. Nicholas Ave., Brooklyn claims are Lions Gate Films Inc., owed for health care and disability insurance obtained from Thomson . president, divisional, exercised options The restaurant opened in Bushwick. $2,155,961; Universal Pay Television, services for medallion taxicab drivers. on 155,654 shares of common stock at The menu includes pork buns, ramen owed $2,019,635; and Home Box Office Bid documents can be downloaded at ● Sirius XM Radio Corp. (SIRI) prices ranging from $38.10 to $45.77 on and Japanese-style fried chicken. Inc., owed $1,752,121. www.nyc.gov/html/dcas/html/about/ Liberty Interactive Corp. purchased Jan. 22, in a transaction worth cityrecord_editions.shtml. To make 50,000,000 shares of common stock at $6,937,809. On the same day, he sold ● Goodby Silverstein & Partners ● Carmen NY inquiries, contact Jeremy Halperin at $3.16 on Jan. 15, in a transaction worth 190,654 shares of common stock at 200 Varick St., Manhattan 45 E. 22nd St., Manhattan (212) 676-1031 or jeremy.halperin $157,780,000. It now directly owns $59.49 and $59.62, in a transaction The ad agency opened its first office in Filed for Chapter 11 bankruptcy @tlc.nyc.gov. 1,999,289,980 shares. worth $11,360,609. He now directly New York City.The San Francisco- protection on Jan. 8.The filing cites holds 30,864 shares. based firm also has a location in Detroit. estimated liabilities of $0 to $50,000 and ● Tiffany & Co. (TIF) estimated assets of $0 to $50,000.The REAL ESTATE DEALS Peter W. May, director, sold 993,500 ● International Business Machines ● The Royal creditors with the largest unsecured claim shares of common stock at prices Corp. (IBM) 127 Fourth Ave., Manhattan are Mastrogiovanni Schorsch, owed Companies that would like to have details ranging from $60.85 to $63.14 between Michael E. Daniels, senior vice The tavern and grill opened in the East $7,814, and Bedell Ditmar, owed $4,020. of their recent transactions appear in these Jan. 14 and Jan. 15, in a transaction president and group executive of Village. Its menu offers upscale sports- listings should email descriptions worth $60,766,512. He now directly services, exercised options on 16,168 bar fare. following this format to ELaermer@ owns 11,653 shares. shares of common stock at $92.51 on GOVERNMENT CONTRACT crainsnewyork.com, with “Real estate Jan. 29, in a transaction worth OPPORTUNITIES transaction” in the subject line, or enter Michael Kowalski, chief executive, $1,495,702. On the same day, he sold COMPANY MOVES them online at crainsnewyork chairman and director, sold 100,000 46,976 shares at prices ranging from Following are selected contract .com/submitadeal. Deals are listed shares of common stock at $63.68 on $204.63 to $205.02, in a transaction Companies that would like to have details opportunities recently announced by New in order of square footage. Jan. 16, in a transaction worth worth $9,618,591. He now directly of recent moves published should submit York City agencies.To learn how to sell $6,338,320. He now directly owns holds 90,939 shares. Ⅲ descriptions following this format to goods and services to city government, visit COMMERCIAL [email protected], with www.nyc.gov/selltonyc. For a searchable ● HBE Solutions, also known as “Company Moves” in the subject line. database of current procurement notices, Heartbeat Experts, signed a five-year visit www.nyc.gov/cityrecord. Listings are lease for 8,000 square feet at 415 DEALS ROUNDUP ● A&I Broadway Realty alphabetical by category and department. Madison Ave. The computer services 150 Broadway, was represented by Andrew The real estate firm relocated in the CONSTRUCTION SERVICES Arvay and Audrey Novoa of Murray TRANSACTION SIZE financial district. Its previous address ● Department of Design and Construction Hill Properties. The landlord, SELLER/TARGET (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE was 170 Broadway. Seeks competitive bids by 11 a.m. on Demetriou General Agency Inc., was Guggenheim Funds $4,608.7 Kinder Morgan Energy Partners SB M&A Feb. 28 for water-main replacement in represented by Nicholas Weld of CBRE Distributors Inc., ● Greenwich Village-Chelsea Chamber Hillside Ave., between 195th Street and Group Inc. The asking rent was KA Fund Advisors, of Commerce 199th Street, in Queens. Bid documents undisclosed. Kayne Anderson Capital Advisors, Prudential 129 W. 27th St., Manhattan are available for a $35 deposit, payable ● Investments, RR Advisors, The business organization relocated to by company check or money order only, Cambridge Mercantile Group signed TPG Capital, Triangle Peak Chelsea. Its previous address was 154 and are available at www.nyc.gov/ddc. a lease for 4,100 square feet at 1359 Partners Inc., Zimmer Lucas Christopher St. in Greenwich Village. For more information, contact Ben Broadway. The global payment-services Capital (Manhattan)/ Perrone at (718) 391-2200. provider was represented by Peter Copano Energy ● Marks Paneth & Shron Goldich of ATCO. The landlord, Government of Singapore $1,504.2 Scientific Games Corp. (Manhattan) SB M&A 685 Third Ave., Manhattan Seeks competitive bids by 11 a.m. on W&H Properties, was represented by Investment Corp. The accounting firm relocated in March 6 for the reconstruction of the Neil Rubin, Anthony Sciacca and Pte Ltd./WMS Industries Inc. midtown east. Its previous address was West 215th step street. Bid documents Robert Silver of Newmark Grubb Hostess Brands Inc./ $410.0 Apollo Global Management (Manhattan), FB M&A 622 Third Ave. are available for a $35 deposit, payable Knight Frank. The asking rent was Hostess Brands Inc., C. Dean Metropoulos & Co. by company check, certified check or undisclosed. certain snack-cake brands, money order only, and are available at five bakeries and certain BANKRUPTCIES www.nyc.gov/ddc. Hard copies of the ● The Committee Encouraging equipment bid documents can be picked up at the Corporate Philanthropy signed a lease Not disclosed/ $170.0 El-Ad Properties NY (Manhattan), SB M&A The following listings are selected from the department at 30-30 Thomson Ave., for 2,900 square feet at 5 Hanover midtown lot in Manhattan Silverstein Properties Inc. (Manhattan) most recent available filings by companies first floor, contract section/bid room, Square. The international forum for Essex Woodlands Health $160.0 Perrigo Co. SB M&A seeking bankruptcy protection in the Long Island City, Queens. For more business leaders focused on corporate Ventures, HealthCor Southern and Eastern Districts of New information, contact Ben Perrone at philanthropy will occupy space on the Partners Management (Manhattan), Two River York. Information was obtained from U.S. (718) 391-2614. 21st floor for six years. The tenant was Group Holdings (Manhattan)/ Bankruptcy Court records available on represented by Harry L. Krausman of Velcera Inc. ● School Construction Authority Cassidy Turley.The landlord, an affiliate Public Access to Court Electronic Records. Tennenbaum Capital $144.6 ACI Worldwide Inc. (Manhattan) SB M&A Listings are in alphabetical order. Seeks competitive sealed bids by 11:30 of Savanna, was represented by Frank Partners, Discovery a.m. on Feb. 26 for asphalt playgrounds Cento, Jonathan Fein and Carlos Suarez Group Holding Co./ ● 1220 University Blvd. and TCU removal at P.S. 140 in Queens. of Cushman & Wakefield.The asking Online Resources Corp. 520 E. 86th St., Manhattan Bid documents are available for $100, rent was undisclosed. Apax Partners, FIS Group $120.0 Fidelity National Information Services SB M&A Filed for Chapter 11 bankruptcy payable only by certified check or money Inc., GRP Partners, Inc. (Remaining 78%) protection on Jan. 23. The filing cites order made out to the New York City RETAIL Ignition Partners, estimated liabilities of $10,000,001 to School Construction Authority.To ● Orogold Cosmetics signed a six-year Intel Capital, MasterCard Inc., $50 million and estimated assets of make inquiries or obtain bid documents, lease for 3,600 square feet at 118 E. 57th Motorola Mobility Holdings Inc., $1,000,001 to $10 million. contact Lily Persaud at (718) 752-5852 St., between Park and Lexington Motorola Mobility Ventures, NCR Corp./mFoundry Inc. or [email protected]. avenues. The California-based skin-care ● GPS Global Parking Solutions line will open its first Manhattan Selected deals announced for the week ended Feb. 2 involving companies in metro New York. 151 W. 17th St., Manhattan GOODS AND SERVICES location, occupying multiple levels of FB M&A: Financial buyer M&A represents a minority or majority acquisition of existing ● shares of a company with the participation of a financial buyer. SB M&A: Strategic buyer Filed for Chapter 11 bankruptcy Department of Citywide Administrative retail space. The tenant was represented M&A represents a minority or majority acquisition of existing shares of a company without the protection on Jan. 24. The filing cites Services by Joseph Aquino and Faith Hope participation of a financial buyer. source: capitaliq estimated liabilities of $1,000,001 to Seeks competitive sealed bids by 10 a.m. Consolo of Douglas Elliman’s Retail

February 18, 2013 | Crain’s New York Business | 23

to lower Manhattan over time, is that rents in the Flatiron district lower Manhattan. The other 15 fi- which could take years,” said an and Union Square are expensive,” nalists will be “strongly encouraged” Tech heads downtown EDC spokesman. “Or they may said Mr. Bowles.“Many tech compa- to relocate, the EDC spokesman choose to locate in areas that are cur- nies there now are going to have to said.The seriousness of their inten- Continued from Page 1 announced this week, includes rently more synonymous with a cre- leave when their leases come due.” tion was part of the judging process. Corp. this week is expected to an- e-commerce site Of a Kind, shop- ative economy.We think it is vital to The average office rent around Some say the city should not be- nounce the 20 finalists in a compe- ping websites StyleCaster and Re- bring these companies to lower Madison Square Park and Union stow extra benefits on lower Man- tition for $1.25 million to rent space finery29, green-tech company Manhattan at this stage, when they Square is $49.64 per square foot, but hattan. “The neighborhood is good on Manhattan’s southern tip. ThinkEco and popular online- are starting up,so that they can grow $39.89 downtown, according to data because taxpayers have invested in- The city hopes to draw a critical invitation company Paperless Post. and attract similar emerging firms from Cushman & Wakefield. credible amounts of money there,” mass of firms,spurring a tech migra- Other winners are less in the neighborhood.” “There’s been a huge shift over the said Bettina Damiani,project direc- tion to the Sandy-socked area. consumer-oriented: OrderGroove, There are 497 tech firms down- past five years,”said Ken McCarthy, tor for Good Jobs New York, an ad- “Startups like to go where there’s a platform for e-commerce sites; town, according to Liz Berger, pres- the firm’s chief economist. “In the vocacy group and subsidy watch- a cluster,” said Jonathan Bowles, ex- health care IT company MedCPU; ident of the Downtown Alliance. past, downtown was always more dog. “When is that not enough? Is ecutive director of the Center for an the Flatiron School, which trains “Tech is not new to lower Manhat- expensive than midtown south.” the city just pushing along some- Urban Future. “It’s very communal, Web developers; cloud-based plat- tan,” she said. “We want to increase thing that would happen anyway— and they like to be among people form Booker; and STELLA- that number and build more of a Cost-conscious startups a burgeoning tech sector in a hip like themselves.” Service, which uses mystery shop- sense of a tech community.” There’s also more office space neighborhood with access to trans- The funds are provided jointly by pers to measure online retailers’ The profile of the tech industry south of Chambers Street. Down- portation?” the city and by the Lower Manhat- customer service. has risen as the city seeks to diversi- town has 85 million square feet, The EDC spokesman said the tan Development Corp.,a city-state Some finalists are startups, in- fy its economy. “A lot of traditional while Union Square and the Flat- awards were intended as prizes to agency created after the 9/11 at- cluding innovative travel and explo- industries are standing still,” noted iron district have about 30 million generate interest in lower Manhat- tacks. Now that agenda includes re- ration websites SideTour and Mr.Bowles.“Tech is roaring ahead.” combined, Mr. McCarthy said. tan, which, despite available and af- covering from Hurricane Sandy. Fathom Unlimited. For five years,startups and Inter- “Tech isn’t downtown to the ex- fordable space, has not attracted a Finalists Crane.tv, Grapeshot, net companies have flooded pricey tent that those companies are in mid- great diversity of businesses. Digital finalists SmartAsset.com and Student Com- office spaces around Union Square town south,” Mr. McCarthy said. “While companies don’t need The finalists—nearly all tech petitions AB would be new to New and the Flatiron district in Manhat- “Startups funded by someone else’s subsidies to come to this neighbor- companies—were chosen from more York. The nondigital finalists are tan, and Dumbo in Brooklyn. money are much more cost- hood,they do need to be made aware than 300 applicants.Five will each re- Bobby Flay’s Rock Shrimp Produc- But with vacancies in those neigh- conscious,and downtown is cheaper.” of the area’s many assets,” the ceive $250,000 toward opening tions and architecture firm SHoP. borhoods rare and rents rising, tech The city will not find space for spokesman said. Ⅲ downtown;15 will get $10,000 apiece The city plans to fund two more firms are seeking space elsewhere. the winners. Finalists will keep the with no commitment required. rounds of the contest. “What’s so tantalizing for other awards, but only the five $250,000 LISTEN to a discussion at The list, which is expected to be “These companies may gravitate neighborhoods like lower Manhattan winners will be required to move to CrainsNewYork.com/podcasts

Thursday sued the city in an effort the credit-card service. Even taxi-app companies that of the four applicants, said the com- Taxis to stop the program. It claims that But no company has gotten are established elsewhere are shift- pany would not seek a waiver. The electronic yellow-cab hails illegally either license yet. ing their New York focus away from remaining applicants are Taxi- duplicate the call-ahead service that Mobile-payment company e-hailing. GetTaxi, a notable player Magic, Flywheel (formerly Cabu- Continued from Page 1 is its sole domain. Square was supposed to already have in Tel Aviv, Moscow and London, lous) and Hailo. dustry revenue. The money would Meanwhile, the two companies an iPad payment system in cabs.But had intended to invest in New York. Verifone, meanwhile, is explor- come from developing apps allow- that make money by providing TV the company, founded by Twitter’s Instead, the company’s Big Apple ing developing its own app, and ing riders to hail cabs electronically screens and credit-card machines in Jack Dorsey, prematurely ended its office is focused on a new product CMT is in talks with Hailo over a li- for the first time—and pay for them the city’s 13,237 yellow cabs have pilot program in October, citing called U-Car. The company hasn’t censing agreement. with their smartphones. millions of dollars at stake.The con- “regulatory changes.” released any details about what it is, “I know there’s some tug-of-war But the road to e-hail apps has tracts with Creative Mobile Tech- Getting an app approved has also only what it is not: an e-hail app. between the apps and the credit- been riddled with potholes. Almost nologies and Verifone allow them to proved discouraging. Applicants “We’re choosing to not partici- card processors,” said TLC Com- a year later,only four players remain, take up to 5% of credit-card rev- have balked at the city’s requirement pate in the pilot right now,”said Jing missioner David Yassky. and none of them are yet eligible to enue—money they would lose to that companies provide a $50,000 Wang Herman, U.S. CEO of Get- A key part of the Hailo experi- let passengers hail yellow cabs—and any e-hailing app that could process surety bond. Taxi. ence is having one’s credit-card in- pay for them—with smartphones. transactions. Taxis generate more “It’s still a very burdensome and The existing credit card proces- formation saved in the app so that a “The TLC went into this with than $7 million in revenue a day,and expensive process to become li- sors, on the other hand, are playing user can pay with a swipe. Thus far, the best of intentions,” said Jay about 60% of rides are paid with censed through TLC,” said Martin a forceful role in how apps come to there is no way to achieve that part Bregman, CEO of Hailo, one of the plastic. Heikel, co-founder of Flatiron market. Verifone and CMT, whose of the experience with the Verifone four remaining app companies. CMT and Verifone’s exclusive Apps.“I think they’re forcing small- CEO, Ron Sherman, owns or has plan. Hailo charges a small fee each “What’s happened, in fact, is that deal to process credit-card transac- er app developers to take on heavy influence over nearly 40% of the time users book a cab. process appears to have collided tions expired Feb.15,timed to allow expense and burden.” city’s fleet,have had a lock on the 5% Making the service as easy as head-on with political reality.” app developers to come into the credit-card fee since taxis began ac- possible is what will get people to The earliest possible start date for market. But with little fanfare it was Developers drop out cepting plastic payments in 2006. use it in the first place. But so far, e-hailing apps was supposed to be extended at least until the end of the Mr. Heikel said his company no And the two companies don’t want nothing about the e-hail app has Feb. 15.The TLC, however, has not month. longer plans to apply for a license to to lose that revenue.They have per- been easy.“It’s like if Seamless made yet approved any for its e-hail pilot Even if the companies’ duopoly sell its e-hail app,ZabKab.One rea- suaded the city to prohibit apps you enter your credit card every time program,in part because of formida- is allowed to expire March 1,mobile son is that the taxi commission re- from processing credit-card pay- and call the restaurant,” Mr. Breg- ble regulatory hurdles and pushback payments are hardly a swipe away. quires apps to hand over a list of pas- ments through other companies, man said. Ⅲ from existing industry players con- Apps developers must get licensed sengers who download the app, the unless they get a waiver. So far none cerned about losing revenue. by the taxi commission, as must the type of smartphone they have, and have been granted. LISTEN to a discussion at The black-car industry last vendors they partner with to provide where and when they use ZabKab. A spokesman for Uber, another CrainsNewYork.com/podcasts

“It’s a hard trend to pull off, so I ers have also experimented with the partnering with the same names that NY is cape town wouldn’t expect that your typical length—avoiding floor-sweeping showed at Fashion Week—Prabal dude will be wearing a big volumi- Dracula-like styles in favor of Gurung recently debuted a collec- nous wrap anytime soon,” said shorter, more athletic approaches. tion at Target,for example—it’s eas- Continued from Page 3 derneath,” she said, describing the Michael Fisher, trend director of ier for shoppers to mix and match. category, U.S. sales slipped 8%, to typically pricey outerwear as “in- menswear and lifestyle at forecast- Comfortable splurge “Not every piece has to be a de- $3.0 billion, for the 12 months end- vestment items.” ing firm Fashion Snoops. “The cape is an iteration of this signer piece,” said Colleen Sherin, ed in November, according to re- Even menswear designers are While cape-like garments roomier, comfortable, statement- senior fashion director at Saks Fifth search firm NPD Group Inc. trying to cash in on capes, larger might not seem like the most wear- making piece that has volume and is Avenue. “It’s playing with different coats and ponchos. Many,including able of items, designers have not close to the body,” said Ms. price points.” Cutting edge Patrik Ervell and Michael Bastian, worked to make them seem less ec- Solomon of Bloomingdale’s, whose By sizing up with outerwear, de- New York City-based design showed bulky and dramatic looks centric and more of an everyday parent company reported a same- signers can go bulky in other areas, houses such as Tibi, Ruffian, and that brought to mind the likes of style. In his fall collection, Derek store sales spike of 11.7% in January too. Ms. Smilovic said she was keen Rag and Bone are all trying to take longtime Vogue editor at large André Lam featured a camel-colored cape year-over-year, versus the average on featuring chunky sweaters for fall advantage. Leon Talley. that was styled like a coat. By using U.S. retailer’s 4.5% rise. layered over form-fitting trousers. “How many times can’t you find Still, this fashion-forward look is the common fabric wool, he made Worn every day in winter, a new She added big coats primarily to fit a coat because it doesn’t fit over your not for the faint of heart. Some men the item more acceptable to con- coat is worth the splurge, especially over such knits,but was pleased with jacket?” noted Stephanie Solomon, have only just begun wearing the sumers, Ms. Graubard said. In ad- since consumers can also pair it with the menswear vibe that resulted. fashion director at Bloomingdale’s, slimmed-down European styles that dition, Amy Smilovic, the founder lower-priced items.As mass-market “We’re in an environment,” she a division of Macy’s Inc. “Oversize have been in style in recent years— of women’s fashion house Tibi,used retail players such as Zara and H&M said,“where people want to feel a lit- coats accommodate the jacket un- they’re not ready for a new extreme. quilted nylon for her cape. Design- increase their fashion quotient,often tle bit tougher.” Ⅲ

26 | Crain’s New York Business | February 18, 2013 IN THE BOROUGHS BROOKLYN

changes the neighborhood would undergo,and we haven’t been disap- FROM Navy Yard opens door pointed,” said Mr. Falco. AROUND Organic supermarket Fresh Fa- Continued from Page 3 BLDG 92 for bus and bike tours of natic, which opened across the street THE CITY property, is making it more of what the yard, or stroll the first-floor gal- from Il Porto three years ago, is an- it was in its heyday during World leries. There, photos and artifacts other sign of the changing area. So is BROOKLYN War II—an economic engine for the highlight the 165 years that the U.S. the Brooklyn Roasting Co., a Dum- neighborhood. But BNYDC is also Navy called the complex home, as bo coffeehouse that is planning to Anxiety mounts over taking the unprecedented step of well as the yard’s current role in the open a storefront on the same block making the yard a cultural, educa- community. within the year. area’s green dreams philip murtha tional and even tourist resource. In collaboration with the TOURIST MAGNET: A $25 million visitors’ hub New retail is also on the horizon. The capstone of that effort is what Brooklyn Historical Society, the offers tours, history lessons and nautical art. The Blumenfeld Development A group of Flatbush residents are is officially called Navy Yard is also inviting local Group is expected to break ground raising funds to turn a quarter-acre the Brooklyn IN THE schools into BLDG 92 for nauti- later this year for a $60 million stretch of concrete just beyond the Navy Yard Cen- cal-themed lessons, and is offering why 1.5 million square feet will be shopping center inside the yard. southeast entrance to Prospect Park ter at BLDG YARD an entire menu of after-school pro- added over the next two years in an Meanwhile, Steiner Studios is on Parkside Avenue into a well- 92—a $25 mil- grams and children’s workshops on expansion expected to add 2,000 planning to turn the Yards’ long- manicured plaza with trees, gravel lion visitors’ hub everything from shipbuilding to jobs to the existing 6,000. Some abandoned Naval Hospital into a paths, tables and chairs. and museum OPENING1801 arts and crafts. 3,000 of those existing jobs are held state-of-the-art media campus and Last month, the Department of that opened in The museum is open to local by Brooklyn residents. public park. Transportation,which owns the land, 2011. Mean- artists as well. Four of them recent- Aspiring filmmakers will have said it would build a low-cost plaza while, to soften 70K ly exhibited their work to commem- Benefits for business access to the facility once the Brook- provided that the group can fund its the yard’s exter- PEAK orate Rosie the Riveter and the “The Navy Yard has really become lyn College graduate film program annual maintenance—estimated at employment in nal image, the World War II changing role of women during an employment anchor for the neigh- and partner Carnegie Mellon move $25,000. badly deteriorat- World War II, from housewives to borhood and has helped sustain busi- into the new site. Steiner is putting “It is a source of anxiety for me, ed, castle-like heads of households. ness,”said Michael Blaise Backer,ex- up $350 million for the infrastruc- that we are just too poor to get this turreted gates on 1966 The Navy Yard is today home to ecutive director of the Myrtle Avenue ture needed to bring the project to plaza,” said Rudolph Delson, a Sands Street U.S. SELLS YARD 275 companies, among them Ice- Business Improvement District, fruition. member of the group trying to raise to NYC, which have recently turns it into an Stone, one of the yard’s 30 green which includes portions of Fort Mr. Kimball is hopeful that the the cash. He noted that the area undergone a industrial park manufacturers; whiskey maker Greene and Clinton Hill. new 50-acre media and entertain- lacks a business improvement dis- three-year Kings County Distillery, one of its Businesses are reaping the bene- ment project will make the Navy trict group that has funded such restoration. newest; and Steiner Studios, the fa- fits. Joe Falco, owner of Il Porto, a Yard a new tourist draw for Brook- projects in other neighborhoods. “Strengthening ties to the com- cility’s largest tenant, with more restaurant on Washington Avenue, lyn, as well as lure more retailers to “I think the DOT is interested to munity is part of our mission,” said than 300,000 square feet and a rep- has added 15 employees to keep up the area. see if we can make it work because Andrew Kimball, president of the utation as one of the premier film- with demand, driven largely by his “We see a lot of growth here that no one has quite made it work in BNYDC. making facilities on the East Coast. neighbor across Flushing Avenue. will spill over and benefit the sur- these circumstances before,”he said. These days, visitors can go to Occupancy is at 100%, which is “We came in anticipation of the rounding community,” he said. Ⅲ —anika anand

February 18, 2013 | Crain’s New York Business | 27 Kanas attempts a comeback Cybersecurity

Continued from Page 1 estate collapse of the early 1990s.But European bank. He even allegedly Continued from Page 3 the company opened an office in that push, BankUnited last week the bank hung on,and when the mar- secured a lease for a branch near a cybersecurity. “So whether the gov- Manhattan last year to keep up with said it hired a top commercial real ket rebounded,its stock price soared, Capital One location. Capital One ernment [forces] the moves or the an expanding client base of finan- estate lender from rival M&T Bank enabling Mr. Kanas to use shares as sued, contending he broke his market does, cyber spending is set to cial-services, utilities and manufac- Corp., and Mr. Kanas is busy re- currency to buy 18 competitors and promise to stay out of New York for go up.” turing firms. establishing business relationships consolidate the Long Island market five years. According to research firm after six years away. Pushcart ven- before turning his sights on Manhat- In court documents, Mr. Kanas Gartner, the global market for Diminishing risks dors around midtown are peddling tan in the mid-’90s. denied Capital One’s charges and cybersecurity will total $65.7 billion Bayshore belongs to a small coffee in paper cups bearing Bank- Sensing that the real estate cycle contended he did “nothing more in 2013 and climb to $85 billion by group of homegrown cyber-tech United’s black-and-blue logo. was about to turn again, he sold his than prepare to compete.”Nonethe- 2016, for a compound annual firms. One of the problems facing “I fully expect John will replicate bank in 2006 to credit-card lender less, he settled the matter last year growth rate of 9%. New York startups, in addition to the success he had in New York with Capital One, reaping an estimated for $20 million,and his noncompete Many of the companies spend- the city’s not having many experi- North Fork,” said Gerard Cassidy, a $200 million payday in the process. finally expired Feb. 1. Lesson ing heavily on securing their com- enced cyber entrepreneurs, is that banking analyst at RBC Capital When the collapse came, he got in learned: “Not to ever sign a non- puters, like major financial institu- they must compete with Wall Markets who has followed Mr. touch with renowned distressed- compete agreement again,” he said. tions, are based in New York or Street. Banks hire top cryptogra- Kanas’ career for years. asset investor Wilbur Ross to see if nearby. But with a few exceptions, phers and pay them handsomely to Mr. Kanas has been waiting to he wanted to join in an effort to in- A complication like IBM and Kroll, the beneficiar- stay in-house. make a comeback pretty much since vest in distressed banks. Mr. Kanas faces one more com- ies of that largesse are not. Accord- “In Northern California,you can the ink dried on his 2006 deal to sell Mr. Kanas made his move in plication as he embarks on his sec- ing to Mr. Thakur, the biggest win- work for Clorox, Safeway or a tech North Fork to Capital One Finan- May 2009, teaming up with Mr. ond act here. Consumer groups, cit- ners in the cyber boom will likely be company,” pointed out Jack Hem- cial Corp. for the aforementioned Ross and private-equity powers ing BankUnited’s poor record of industry leaders in tech security,like brough, chief executive of Applica- tidy sum. His return was delayed af- Blackstone Group, Carlyle Group lending to minorities in Florida, are Silicon Valley’s Symantec, Cisco tion Security Inc., a 12-year-old ter Capital One sued him for violat- and Centerbridge Partners to ac- seeking to have the bank’s acquisi- and McAfee, and traditional de- ing a noncompete agreement, but quire BankUnited, a failed thrift tion of Herald postponed.The New fense companies like Raytheon near that glitch has been dealt with, and near Miami with 86 branches and York-based Association for Neigh- Boston,and Northrop Grumman in ‘A lot of people he’s ready to rumble. $13 billion in assets. borhood and Housing Develop- Virginia. “I love this,”said the 66-year-old The investors poured $945 mil- ment said in a letter to regulators last There will also be room for small- underestimate banker as construction workers lion into BankUnited, and the Fed- month that BankUnited made just er companies and startups, since cy- opened boxes of furniture and in- eral Deposit Insurance Corp.agreed one loan to an African-American bersecurity is traditionally a highly the strength of stalled lights at what will be Bank- to absorb up to 95% of its losses for borrower in Miami-Dade County fragmented industry. The top four United’s Herald Square branch. “A 10 years and even gave Mr. Kanas in 2010 and none in 2011. players, which include IBM, control being in lot of people are probably betting and his group $2.2 billion in cash to “Considering all of the subsidies just 30% of the market, according to against me, thinking that I’ll fail. I sweeten the deal.BankUnited’s fail- the bank has gotten,it has a responsi- International Data Corp. New York’ love that.” ure is expected to cost the FDIC’s bility to make its services available to Most of those smaller firms are As to skeptics who say he’s yes- insurance fund $6.2 billion; for Mr. all borrowers,” argued John Taylor, likely to be in Silicon Valley, near terday’s news or wasting his time in Kanas and his partners, it was the president of the National Communi- Washington, D.C., or in the Boston a city dominated by giant banks, he sale of the century. ty Reinvestment Coalition. area, where large pools of cyber en- points out that North Fork’s first “It was the best deal signed by Mr. Kanas said his bank has pur- trepreneurs and engineers have de- Manhattan branch had just $28 anyone in the crisis,” Mr. Cassidy chased loans made to African- veloped over the years, and some of million in deposits when it opened said, “because it was the first.” Americans by other banks and has them are likely to be gobbled up by data-security firm based in lower in 1997. That branch, located just Mr. Kanas pointed out that only originated only 15% of its $5 billion larger players. Manhattan.“In New York City,you one block north of BankUnited’s three bidders stepped forward after loan portfolio because the Florida As an investor, Mr. Thakur likes can work for JPMorgan or Gold- new one across from Macy’s, had real estate market is still “very, very established companies typically lo- man Sachs. Who do you think con- $1.5 billion when North Fork was weak.” (Mr. Taylor contends that cated in Virginia or Maryland “that sumes more cybersecurity profes- acquired. His formula was purchasing loans doesn’t suggest the come out of the government ecosys- sionals?” “Just because New Yorkers live in same level of commitment as origi- tem” and have had “generations of New York may become more a big city doesn’t mean they want a simple: Focus on nating them.) products,” he said. hospitable to entrepreneurs as the big bank,” he said. As for government subsidies, The industry has unique chal- number of engineers and investors A lot of bankers agree, which is winning business Mr.Kanas said no taxpayer money is lenges that present hurdles as well as attracted to the local tech scene why plenty of them based outside involved in his loss-sharing agree- opportunities for entrepreneurs and grows. “The risks of starting a secu- the city have set up shop here over accounts by ment with the FDIC,an agency that investors. Some venture capitalists rity company in New York, includ- the past year,including New Jersey’s is funded by assessing banks,though have shied away from the sector be- ing acquiring talent, seem to be [di- Investors Bancorp and upstate’s getting their it enjoys the implicit backing of the cause many of the smaller compa- minishing],” said Steve Berg, senior Provident New York Bancorp.Oth- U.S. Treasury. nies developing niche products can- analyst in the Manhattan office of ers have expanded their footprints, deposits, and “I look forward to sitting down not scale up enough to provide a RTP Ventures, which specializes in such as People’s United Financial of with [consumer groups] in the near sizable return. the business-to-business sector. Connecticut and Buffalo’s M&T. the loans would future and making them feel more He pointed to Dumbo-based Like BankUnited,they are all trying comfortable that we will continue to Evil genius security startup NopSec as one that to win the business once held by the follow provide the kind of banking servic- Competition is fierce in no small is “getting attention from large, likes of European American Bank, es that they think are essential,” Mr. part because geeks compete not just well-reputed VCs.” Republic National and NatWest be- Kanas said. Shortly before North with each other, but also with hack- Lisa Xu, NopSec’s chief execu- fore they vanished into Citigroup, Fork was sold, regulators assigned ers, whose evil genius constantly re- tive, declined to comment on fi- HSBC and Bank of America, re- the bank an “outstanding” rating for quires the good guys to come up nancing, but said the company is spectively, a decade ago or more. serving low- and middle-income with new solutions. The more at- growing quickly,with revenue set to the FDIC asked 63 parties to buy borrowers. tacks there are,however,the better it spike by 300% for the second year in A tiny thrift transformed BankUnited at the nadir of the fi- In the meantime, Mr. Kanas is is for niche players whose software a row. NopSec launched in Novem- “Those mergers left a hole in the nancial crisis. “It was pretty lonely,” deep in staffing-up mode. In addi- isn’t yet fully cooked. ber 2011 after spending two years market that banks like ours have he recalled. tion to hiring real estate banker Sam “We’re operating at the bleeding building the algorithm for its flag- been taking advantage of for years,” The deal has already paid off Giarrusso, whom he described on a edge,”said Francis Cianfrocca,chief ship software product, she said. said Joseph DePaolo, CEO of Sig- handsomely. Mr. Kanas kicked in recent conference call as “our biggest executive of Staten Island-based Being based next door to global nature Bank, which caters to small $23.5 million for his 6.9% stake in competitor at North Fork,” last Bayshore Networks, which he banks and health care giants, businesses and whose stock price the bank, which he took public in week he ran an ad in American founded in 2002. “The threat pic- NopSec has “a very compelling has quadrupled since early 2009. early 2011. He reaped $36 million Banker headlined: “An Open Letter ture has picked up so much, we’re competitive advantage” over com- Yet no one has had more success by selling 1.35 million shares in the to Bankers in America.” seeing activity on the part of large, panies elsewhere, she added. “A lot against the city’s giant banks than IPO, according to a regulatory fil- “Inside hundreds of banks in conservative organizations that or- of people underestimate the unique Mr.Kanas,who over four decades at ing, and his remaining 4% stake is America are thousands of experi- dinarily wouldn’t touch” brand-new strength of being in New York.” Ⅲ North Fork transformed a tiny worth $105 million. enced bankers managing profitable solutions. Long Island thrift into a major com- Yet even amid great success in businesses that are being held back Initially focused on the defense LISTEN to a discussion at mercial lender with 350 branches, Florida, he made no secret of his by their own institutions,” the letter industry and government agencies, CrainsNewYork.com/podcasts including 55 in Manhattan,and $60 plan to return north, and in 2011 read. “If you manage or are part of billion in assets. His formula was agreed to acquire New York-based such a group and are tired of being simple: Focus on winning business Herald National Bank, which was starved for growth capital and at- CORRECTIONS accounts by getting their deposits, co-founded by a former North Fork tention, contact us immediately.” Ⅲ Gerson Lehrman Group Inc. has 275 employees in New York. That figure was misstated in the Feb. 11 and the loans would follow. director. Mr. Kanas then allegedly “M.B.A.s, docs try freelance route.” He learned a harsh lesson when began soliciting résumés and bid- LISTEN to a discussion at CrainsNewYork.com/podcasts Jason Cahilly is the NBA’s chief financial officer and executive vice president of strategy. His second North Fork nearly failed in the real ding for loans from a troubled title was misstated in the Feb. 11 “NBA sinks bank shot.”

28 | Crain’s New York Business | February 18, 2013 HELLUVA TOWN INSIDE Source Snack Model A big bravo Karlie Kloss launches line for the Met of Kookies PAGE 30

Oh, to be the Metropolitan Out and About Opera during a recession. Social Media Week 2013 While smaller operas like Dicapo (see accompanying PAGE 31 story) have barely been able to stay afloat, donations to the country’s granddaddy of opera companies kept growing despite the economic turmoil. In the five years that ended July 31, 2012, contributions to the Met rose 26%, to $150.3 million. The company’s illustrious 128-year history and high- bloomberg newsbloomberg powered board help. But the Met’s management made SWAN SONG: The Dicapo some smart business moves as Opera Theatre Michael well. Right before the Capasso founded needs an recession, the company started angel investor if it’s to a host of new programs, perform in NYC again. including live broadcasts of operas in movie theaters. Those shows helped prompt donors to open up their wallets, according to Peter Gelb, general manager of the city’s largest cultural institution. “I don’t take a dollar of it for granted,” said Mr. Gelb. The company does have its challenges.The recession pushed the Met to postpone a capital campaign to pad its endowment. It is also facing a shrinking regular-audience base. In the past five years, the percentage of full-price ticket purchasers fell to 78% from 88%. Mr. Gelb said there would be some changes in ticket prices soon that could help reverse that. LightsLights outout atat thethe opera?opera? Of course, the Met has fared much better than its former neighbor, the New York AccoladesAccolades came,came, donorsdonors didn’t.didn’t. City Opera, has in recent years. That company was forced to NowNow creditorscreditors wantwant theirtheir moneymoney back.back. abandon its longtime home at Lincoln Center in 2011 and buck ennis dramatically restructure its operations, but it is now on BY THERESA AGOVINO DRYING UP more stable ground. Donations to Dicapo City Opera is in the ichael Capasso, sitting in the theater he built for the opera company he process of selling off many of Opera Theatre its costumes and sets to avoid created, recalled the moment 18 years ago when the orchestra pit the expense of keeping them. flooded during construction of his Dicapo Opera Theatre. ¶ $400K And now, after paring back its “Everybody was just freaking out,” said Mr. Capasso inside the empty number of productions and switching to different venues, theater on a recent rainy day. Not him. He knew the problem was an the company is set to have its easy fix because he’d worked in construction before founding the second consecutive balanced company, which shares its name with its theater, 32 years ago. ¶ These budget, holding steady at days, it’s Mr. Capasso who’s scared. Severe debt caused by fundraising $13.6 million. “I’d love to raise more shortfalls forced the opera company to go on a hiatus last month, canceling three productions in money,” said George Steel, the an attempt to save money and avoid bankruptcy. Creditors, which are owed a total of $600,000, opera’s general director. “But Mare being asked to wait six months for their money. ¶ Mr. Capasso knows he needs to act fast. He $100K the economy is sluggish, and I also knows what will solve the crisis. “I need an angel,” he said with no trace of irony, even though don’t want to have an aspirational budget.” the theater is in a church basement on the Upper East Side. ¶ Finding one won’t be simple. Mr. —theresa agovino Capasso is praying for divine intervention. Meanwhile, he’s searching See LIGHTS on Page 30 2008 2012

February 18, 2013 | Crain’s New York Business | 29 SOURCE SNACK: Lights out at the opera? KARLIE KLOSS newscom by Adrianne Pasquarelli Continued from Page 29 has always been heavily dependent for donors and considering staging on donors. productions out of town to raise One attribute that has helped money. another company,Gotham Cham- Mr.Capasso doesn’t understand ber Opera, is its defined mission, Model tries hand why Dicapo hasn’t attracted blue- according to its executive director, chip philanthropists. Its produc- David Bennett. Since it performs tions have a history of accolades only chamber operas, “our donors from The New York Times and The see it as a complement to the Met at Kookie-cutting New Yorker. Dicapo has also been as opposed to competing with crowned the city’s third opera after them,” he said. the Metropolitan Opera and New Mr. Bennett said that because mid the star-studded respect that and admire it. She’s an York City Opera because of its per- Dicapo produces a wide range of parties and glamour- amazing businesswoman. manent home and robust number operas, from the classics to newer filled runways of New of productions, even though its works,it is more challenging to cre- York Fashion Week, You’re a supporter of the Model Alliance, $1.2 million budget is dwarfed by ate a targeted fundraising message. Crain’s New York caught a year-old nonprofit labor group that those of its compatriots. It’s even He added that fundraising is time- Aup with model Karlie Kloss, the advocates better working conditions and been dubbed the “closest thing consuming and that Mr. Capasso brand ambassador for Mercedes- an industry code of conduct. What are New York has to a mini-Met.” has his hands full with other re- Benz Fashion Week. some issues facing the industry? Dicapo earns more of its budg- sponsibilities. The St. Louis native is a fledgling The Model Alliance, as well as the et from operations than its “Michael runs the company, he entrepreneur—she recently launched Council of Fashion Designers of brethren, which rely heavily on directs,he produces,he builds sets,” her own line of cookies at Momofuku America’s Health Initiative, are both fundraising. Most opera compa- said Mr. Bennett. “It takes a lot of Milk Bar. Having walked the runway incredible.These organizations have nies are dependent on donations,so time and effort to fundraise, and shows of fashion heavyweights come together to create a positive en- Mr. Dicapo believed philanthro- you can’t do it if you are directing Carolina Herrera, Marc Jacobs and vironment for models, and I respect pists would admire the company’s and producing, too.” Michael Kors, Ms. Kloss is intimately the work they do.These cookies I’ve self-reliance. familiar with the industry and its created—it’s the same idea of being “People keep telling me they Insurmountable odds pressures. able to balance a healthy lifestyle. love what I’m doing, but nobody Mr.Capasso said he wears many There are obviously stereotypes or wants to write a check,” said Mr. hats because he’d rather pour mon- Congratulations on Karlie’s Kookies! Why misconceptions that models struggle Capasso. “A $250,000 donation ey into productions, not staff. He did you decide to launch the brand, and with being unhealthy and have in- would save my life, and at the Met adds that over the years he’s never what expansion plans are in the works? dustry pressures, but this communi- they wouldn’t even appreciate it.” had a board that has raised enough As a model, I love Fashion Week and ty built by the Model Alliance and SCENES FROM OPERAS staged at the His plight is emblematic of that Dicapo theater (from top): The Most Happy money to give him the opportunity working with designers and photog- the CFDA is supportive. Personally, of many small arts organizations, Fella, Turandot and Rigoletto. to employ more managers.In 2010, raphers. But I recognize I’ve been giv- I feel like it’s become less and less of whose missteps are amplified dur- one donor promised him $100,000 en a platform—I have a voice and I an issue. ing hard times. to hire a fundraising consultant but want to use that platform to give back. It’s also the tale of how a fice,he still has numerous creditors, gave him only $6,000. I love to bake,I love to cook, How have models’ rights founder’s passion for an organiza- including his publicist, the church Rev. Kamas agreed that the and I love sweets as well. I WHERE evolved over the past 20 years tion can blind him to practicalities. and numerous musicians and board wasn’t very effective at wanted to create something or so? Mr. Capasso ignored basic princi- singers. Donations fell to about raising money. It also wasn’t that was delicious but also THEY I’m very young—I’m 20,so ples that other opera companies $100,000 last year from $400,000 particularly critical of Mr. Capas- good for you and healthy. I DINED a few decades ago I wasn’t swear by,failing to cultivate a strong five years earlier. Law firm Duane so’s management style. created this cookie with MERCEDES- even born! But over the donor base and management team. Morris is working pro bono to keep “The productions were just so Christina Tosi; she’s the BENZ STAR past few years,I’ve seen the creditors at bay while Mr. Capasso beautiful, and everyone loved chef and founder of Milk LOUNGE whole industry come to- Romantic beginnings them,” he said. Bar. We came up with this at Lincoln gether to make these Center’s Mr. Capasso fell in love with Now Mr. Capasso is working to recipe to create a vegan Damrosch Park, changes. Even Michael opera when,as a 7-year-old,he was ‘A $250,000 replenish the board, which has cookie that’s gluten-free so Columbus Avenue Kors always has healthy introduced to the works of Enrico dwindled to six from 11 about a that people with health re- between West catering available back- Caruso by his grandfather. He donation year ago. Early results haven’t been strictions or allergies can 62nd and West stage. He also makes sure knew he wasn’t talented enough to promising. indulge without the guilt. 63rd streets his fittings aren’t done too become a professional singer, so he would save One member, Judy Iovino, has AMBIENCE: late at night. All of these VIP area hidden joined the family construction never been on a board before, but Is there also a philanthropic behind velvet might not seem like im- business. But after dabbling in my life’ she joined six months ago because element to the venture? ropes where portant things, but the staging operas for a few years, he she loves opera and Mr. Capasso is The biggest part of the pro- hors d’oeuvres Model Alliance and the started Dicapo with his former an old friend.She has asked 25 peo- gram is that we can incor- of sliders and CFDA are very passionate flutes of music teacher in 1981, producing ple for money—seven have said porate a charity aspect: All champagne were about making sure these Tosca in a now-defunct Long yes—and has raised about $10,000. of the proceeds go to donat- passed by things are regulated. Island theater. tries to raise money. “People already have their pet ing meals to schoolchildren impeccably For years,he produced operas in “Taking the hiatus was the charities,” she said. around the U.S. and inter- dressed waiters. You started modeling when different venues, even staging hol- hardest decision I’ve ever made in Mr. Capasso can’t get potential nationally. Right now, we WHAT THEY ATE: you were 15. Should 16 iday performances at department my life,” said Mr. Capasso. He had donors to a performance because donate 10 meals per Mini-heart- remain the minimum age for shaped versions the runway? stores. Then, in 1991, Dicapo was hoped donations would flow in the company is on hiatus.And even cookie—which are sold in of Karlie’s given the chance to build a perma- 2011, when the company celebrat- if he does find the funds to stage all [five] Milk Bars Kookies made for When I was 15, I was on nent theater in the basement of St. ed its 30th anniversary.They didn’t. one, hiring people to work for him throughout the city. We’re Fashion Week the Calvin Klein runway, Jean Baptiste Church on Lexing- The anniversary gala raised only might be challenging because the working on getting them but I was very lucky to have ton Avenue and East 76th Street. $25,000. company already owes many into Whole Foods very soon. a very good family when I started. Mr. Capasso called in every favor Dicapo’s predicament is an odd singers and musicians money. Not all models are as fortunate to he could from his construction days twist for an organization run by He insists that he has built up As an entrepreneur, are there any have such a supportive team around and even operated the backhoe someone who prides himself on enough good will over the years that specific people in business that you look them,and 16 is definitely a much bet- himself. The 204-seat theater was bringing business standards to the people will join his casts. His latest to as role models? ter age to be thrown into this chaos. built in 100 days. Reviewers ex- nonprofit world. Mr. Capasso idea is to stage productions in cities Absolutely. With Karlie’s Kookies, tolled the pleasures of watching an boasts that 60% of Dicapo’s budg- where there are no longer any opera we work with Lauren Bush Lauren’s What’s first on your to-do list after New opera in an intimate setting. et comes from earned income like companies so the performance will charity organization, FEED. She is York Fashion Week? “He was there all the time,” said ticket sales and costume rentals, be more of a novelty. He’s reached incredibly hardworking, passionate For me, Fashion Week is only just the Rev. John Kamas, who was the while the industry average is about out to some theaters,but it’s too soon and caring. She’s so young, and she’s beginning. I’m going to London, church’s pastor at the time and is on 40%.But opera experts say Mr.Ca- to say whether the plan will work. accomplished so much. I really Milan and Paris and all that jazz. Dicapo’s board. “You can’t believe passo’s 60% is actually a weakness. Meanwhile, Mr. Capasso his dedication.” “It is a sign you aren’t raising remains hopeful that he’ll find his Mr. Capasso is so committed to enough money,” said Marc Scorca, angel. “I am optimistic,” he said. INSIDE TIP: The lounge was guarded by a Dicapo that he says he hasn’t drawn president and CEO of Opera “This company is my life.” a salary in years and recently took a America, a service organization. bouncer, so if you’re not on the list, don’t construction management job to He said operas are notoriously ex- LISTEN to a discussion at even bother faking your way in! make ends meet. Despite his sacri- pensive to produce, so the art form CrainsNewYork.com/podcasts

30 | Crain’s New York Business | February 18, 2013 OUT AND SNAPS Anna Deavere Smith takes center stage ABOUT by Emily Laermer and Miriam Kreinin Souccar

CULTURE FIX CAREER BUILDERS STARTING WEDNESDAY, FEBRUARY 20 THURSDAY, Discuss some of the obstacles and FEBRUARY 21 challenges that minorities face in today’s Salute artists from legal market at BLACK CAREERS IN LAW: the city of music at MANY PATHS, ONE GOAL, a free panel and VIENNA: CITY OF networking reception hosted by the DREAMS. Carnegie Metropolitan Black Bar Association and Hall’s citywide New York Law’s Black Law Student three-week festival Association. Panelists include Taa Grays, features chief of staff and associate general counsel symphonic and at MetLife Inc.; Sandra Grannum, operatic work, chamber music and a film assistant attorney general and bureau series. Performances include those by the chief for the Office of the New York State shulamit jp morgan seidler-feller,courtesy of Vienna Philharmonic Orchestra and the Attorney General, Legal Recruitment ANNA DEAVERE SMITH and GLENN LOWRY at the 19th-annual Dorothy and Lillian Gish Prize mary hilliard Vienna State Opera. For more Bureau; and Wayne Melbourne, vice ceremony on Feb. 13. Ms. Smith was this year’s LAURA and RICHARD PARSONS with DYLAN GLENN at the Foundation for Art and information, including ticket prices and president at Morgan Stanley Smith winner of the prestigious award. Preservation in Embassies reception honoring David Rubenstein on Feb. 6. a schedule of events, visit Barney. It is at 6 p.m. at New York Law www.carnegiehall.org. To purchase School, 185 West Broadway, at Leonard tickets, call (212) 247-7800. Street. For more information, contact Jason Clark at [email protected]. FRIDAY, FEBRUARY 22, AND SATURDAY, FEBRUARY 23 THURSDAY, FEBRUARY 21 See a variety of performances at DANCE Learn about your digital identity at the UNDER THE INFLUENCE, a show that PERSONAL DATA ECONOMY SEMINAR. combines intensity with playfulness. During the workshop, students will Dancers include dancer/choreographer review what aspects constitute the Molissa Fenley and former Mark Morris personal data ecosystem, discuss company member John Heginbotham. institutional and cultural characteristics The show is at 7:30 p.m. at the Museum that drive the adoption of digital identity of Arts and Design, 2 Columbus Circle, and map the types of data life cycles. It is at West 58th Street. Tickets are $20 for at 1 p.m. at Terrace Club, 25 W. 51st St., adults and $12 for students and between Fifth and Sixth avenues.Tickets members. For more information, visit are $325 in advance and $450 at the door. www.madmuseum.org. For more information, visit www.pde.cc. patrick mcmullan.com patrick DON’T MISS SOCIAL MEDIA WEEK julie skarratt JAMES HOUGHTON and DAVID HENRY HILARY ROSS, WILBUR ROSS, KAREN LEFRAK, RICHARD LEFRAK and GARY PARR at the New HWANG at the Signature Theatre’s annual MONDAY, FEBRUARY 18, TO FRIDAY, FEBRUARY 22 York Philharmonic’s second-annual Chinese New Year gala on Feb. 12. The evening raised $850,000. gala on Feb. 11. Learn about the social, cultural and economic impact of new technology at SOCIAL MEDIA WEEK 2013.The weeklong festival, which takes place at See more of this week’s Snaps online at CrainsNewYork.com/galleries. various locations, includes conferences on brand growth, social cameras and big data. Speakers throughout the week include Esther Dyson, chairwoman of EDventure Holdings; Jonah Peretti (right), founder and chief executive of BuzzFeed; and Rachel Haot, the city’s chief digital officer. For more information, including a schedule of events, visit www.socialmediaweek.org.

OPENING FUNDRAISERS FRIDAY, FEBRUARY 22 WEDNESDAY, FEBRUARY 20 See work representing voices of Raise money for the Food Chain Workers Asia at the Guggenheim Alliance at its second annual fundraiser, Museum’s NO COUNTRY: VICTORIES FOR FOOD WORKERS=FOOD JUSTICE. CONTEMPORARY ART FOR SOUTH Tickets include one drink and appetizers. AND SOUTHEAST ASIA. The work by There also will be a cash bar. The event is at 22 artists and collectives visits 6 p.m. at Colors Restaurant, 417 Lafayette themes like ethno-nationalism, St., between East Fourth Street and Astor colonization and globalization. It Place. Tickets are $30 for low-wage workers runs through May 22 at 1071 Fifth and students, and $75 for general admission. Ave., between East 88th and East For more information, visit www.foodchain 89th streets.Tickets are $22 for workersparty.eventbrite.com. adults, $18 for students and seniors, and free for members and children FRIDAY, FEBRUARY 22 under 12. For more information, Celebrate the Year of the Snake while raising visit www.guggenheim.org. money for a nonprofit at the Overseas China Education Foundation’s NEW YEAR BENEFIT CONCERT.The organization helps educate underprivileged children in China.The event includes a performance by the Salomé Chamber Orchestra. It is at 7 p.m. at 161 W. 61st St., at Amsterdam Avenue.Tickets start at $100.To RSVP,email [email protected]. MARK YOUR CALENDAR … STARTING FRIDAY, APRIL 5 BETTE MIDLER STARS in I’LL EAT YOU LAST: A CHAT WITH SUE MENGERS. In her first Broadway performance in 30 years, Ms. Midler (right) will play the first female Hollywood superagent. The show will be at the Booth Theatre, 222 W. 45th St., between Seventh and Eighth avenues. Tickets start at $82 and will be available to the public on Sunday, Feb. 17, at 10 a.m. To purchase

tickets, call (212) 239-6200 or visit www.telecharge.com. pushnik jonathan

February 18, 2013 | Crain’s New York Business | 31