They Chose Yellow

Home , 51st Tony Awards, 54th Tony Awards, 55th Tony Awards, 58th Tony Awards, 689 Fifth Avenue, Anne Garefino

20160606-NEWS--0001-NAT-CCI-CN_-- 6/3/2016 7:31 PM Page 1 CRAINS Pols’ sinking poll numbers P. 11 | New York’s largest architecture firms P. 12 | Secret score of a Broadway hit P. 17 CRAINS ® JUNE 6-12, 2016 | PRICE $3.00 NEW YORK BUSINESS

THEY CHOSE VOL. XXXII, NO. 23 WWW.CRAINSNEWYORK.COM YELLOW Why an immigrant family from Bangladesh represents the taxi

0 71486 01068 5 23 industry’s best shot at taking on Uber PAGE 14 NEWSPAPER 20160606-NEWS--0002-NAT-CCI-CN_-- 6/3/2016 7:32 PM Page 1

JUNECRAINS 6-12, 2016

FROM THE NEWSROOM | BARBARA BENSON IN THIS ISSUE

Signing off after 20 years 3 AGENDA Hudson Yards ON MAY 21, 1996, Crain’s Health Pulse launched as a one- 4 IN CASE YOU MISSED IT opens amid questions page fax about the health care business in New York. In 5 REAL ESTATE those early days, we worried whether insurers, hospitals, 8 WHO OWNS THE BLOCK physicians and companies would generate news to fill the 9 HEALTH CARE page. But Pulse soon became the industry bible. 10 ASKED & ANSWERED When Pulse hit its 20th anniversary a few weeks ago, I 11 felt it was time to step down as its founding editor and VIEWPOINTS consider new challenges. As I prepare to pass the baton 12 THE LIST when the new Pulse editor starts— FEATURES and is introduced to readers—June 20, I’ve reminisced We’ve chronicled about those 20 years. We’ve chronicled many journeys as 14 CHOOSING TAXIS luminaries changed jobs, retired, died or were even jailed many journeys as 17 THE BOOKS OF MORMON for bribery. None of Pulse would have been possible without luminaries changed the trust so many sources have placed in Crain’s. jobs, retired, died Those of us with an institutional memory of New York P. 10 health care view these decades as a period of tremendous or were even jailed JESSICA LAWRENCE change. Various attempts at reforms were chronicled by for bribery QUINN their acronyms. Before DSRIP—the state’s current $8 billion Medicaid reform—there was the $1.5 billion F-SHRP program to fund hospital restructuring in 2006, when a commission headed by private-equity investor Stephen Berger made its controversial recommendations to close hospitals. The state’s hospital financing system was replaced by deregulated prices, but 24 GOTHAM GIGS today many hospitals’ finances remain shaky—an instability that has triggered 25 SNAPS years of hospital bankruptcies and a morgue of closed facilities. Among them are 26 FOR THE RECORD St. Vincent’s, Long Island College Hospital, Parkway and Peninsula. 27 PHOTO FINISH The fragmented hospital system has consolidated. New York Hospital merged with Presbyterian Hospital. Long Island Jewish combined with North Shore CORRECTION ultimately to become the behemoth $8.7 billion Northwell Health system of today. The last name of Governors Ball fan JOHN ROLFE was mis- I asked Dr. Jack Rowe, who helped orchestrate the short-lived Mount Sinai- spelled in “Battle of the Band Promoters,” published May 30. NYU Health merger as president of Mount Sinai and later ran Aetna from 2000 to 2006, for his thoughts on these past two decades. His answer surprised me. “Much more is the same than different,” he said. “Change has been very slow.” Our recent headlines about the downsizing of Mount Sinai Beth Israel might well have run in 1996. There long has been less demand for hospitals, but New Yorkers have resisted this reality. Manhattan has six hospital beds per 1,000 residents, compared to a national average of less than three beds. ON THE COVER Whatever my next move, I look forward to observing how the city’s health PHOTO: BUCK ENNIS care changes in the coming decades. I’ll be sure to read about it in Crain’s.

DIGITAL DISPATCHES CONFERENCE CALLOUT JUNE 16 Go to CrainsNewYork.com READ CRAIN’S BUSINESS A Manhattan site on the west side of BREAKFAST FORUM Eighth Avenue between West 45th and West 46th streets owned by developer Gary Barnett Shola Olatoye, chair of the is the likely home of the first Hard Rock Hotel New York City Housing Authority, in the Northeast. will discuss her plans ■ to cut costs, Two-time Academy Award-winning actress increase revenue Cate Blanchett, in her Broadway debut, and clear a will star in Andrew Upton’s adap- $17 billion repair backlog. tion of Anton Chekhov’s The > Present, which will begin preview NEW YORK performances ATHLETIC CLUB on Dec. 17. 8:30 a.m. to 9:30 a.m. LISTEN [email protected] Our podcast this week includes a discussion of the mayor and governor’s ongoing feud, insight into Vol. XXXII, No. 23, June 6, 2016—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double issues the big bucks being made on Broadway the weeks of June 27, July 11, July 25, Aug. 8, Aug. 22 and Dec. 19, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send address changes and details on the reporting of this to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. week’s cover story. Music by SoftSpot. For subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one year, $179.95 two years.(GST CrainsNewYork.com/podcast No. 13676-0444-RT)

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AGENDAWHAT’S NEW JUNE 6, 2016 Give promising food-makers a chance to get cooking

slew of eager entrepreneurs have launched food businesses in the city in recent years, finding surprisingly fertile ground in a town better known for white-collar industries and retail. Supermarket chains such as Whole Foods have FLYING SOUTH? Matt and Alli- been willing to give shelf space to local and niche products. Farmers’ A son Robicelli markets have proliferated, providing another sales outlet. And in the plan to move wake of the housing-market crash and recession, food startups could their cupcake company from more easily find the space and labor they needed to sprout. Food manu- Brooklyn to facturers employed 16,000 New Yorkers in 2014, up 16% from 2009. Baltimore. But many have struggled with scaling up, which can be imperative to their survival. Experts cite a variety of factors, but the one commonly Government can fill this private-sector void—namely, a paucity of co- associated with failure—a shortage of customers—is not one of them. packing facilities that small food businesses require to fill midsize orders. Rather, the real estate market has bounced back, driving up rents as res- The few co-packers in the city typically have substantial minimums— idential developers, hotels and businesses such as bowling alleys, self- several times larger than a young business can commit to without major storage warehouses and rock-climbing centers have competed for risk. The city’s Economic Development Corp. last year requested propos- industrial properties. The labor supply has tightened. And fledgling als for a more flexible operator. It is negotiating with a respondent. food-makers inevitably confront the The EDC also has incubators for city’s confounding regulatory environ- Many popular food manufacturers young food businesses and connects ment and other challenges they are ill- entrepreneurs with other agencies and prepared to handle. have struggled to scale up. One bakery information sources, including neigh- As a result, despite loyal and growing with lines out the door closed last year borhood-based nonprofits with city customer bases, many move out of the city contracts. Would it be better if the or simply fail, as writer Cara Eisenpress industry could thrive on its own? Of documented in a Crain’s cover story last week. One bakery in the gentri- course. But some of the obstacles it must overcome are imposed by fying Brooklyn neighborhood of Bedford-Stuyvesant had lines out the government—picayune regulations, overzealous enforcement, zoning door but was losing money for lack of a facility that could sustain a cater- loopholes and policies that drive up the price of market-rate housing. ing business. A $10,000 fine from the city’s Department of Health for a Given that, it is only fair that city officials do something to maintain a grease-trap violation didn’t help. The popular business closed in 2015 path to prosperity for entrepreneurs whose businesses provide quality after a five-year run. jobs and products for New Yorkers. – THE EDITORS

FINE PRINT The Metropolitan Opera named Yannick Nézet-Séguin as its new musical director last week. One of his top priorities will be trying to get more people into the seats. Box office and touring revenues at the Met have declined 14% in the past five years, to about $91 million in fiscal 2015.

BY GERALD SCHIFMAN STATS 25 WORDS OR LESS HOT TICKET SINCE 2008, it’s been legal to park in front of sidewalk pedestrian ramps as long as they aren’t part of crosswalks. But drivers He bilked people CITY AND THE “out of millions continued to be ticketed for parking in those spots. Fine from the city’s Department of dollars. We’re of Finance for parking in front of going to make sure $165 a pedestrian ramp Estimated number of tickets he pays it back levied each year for legally parking – New York Attorney General Eric 9K-18K in front of such ramps Schneiderman on Donald Trump. The Estimated total fines each AG is suing Trump University, alleging it year for legal parking at cheated thousands of students who $1.5M-$3M ramps not in crosswalks paid a total of $40 million to learn the Number of tickets handed out in front of 575 Ocean secrets of real estate investing. Trump Ave. in Brooklyn in the past 2.5 years, making it the denies the charge. An appeals court in 290 most frequently ticketed legal ramp spot in the city March said the case could proceed.

ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY SOURCES: I Quant NY, PIX 11, BUCK ENNIS NYC Department of Finance

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AGENDA ICYMI CRAINS EDITOR IN CHIEF Rance Crain publisher, vp Jill R. Kaplan assistant to the publisher Devin Arroyo, 212.210.0701 EDITORIAL editor Jeremy Smerd It will take more than a fish assistant managing editors Erik Engquist, Peter S. Green, Jeanhee Kim web editor Amanda Fung dinner to heal this rift copy desk chief Steve Noveck art director Carolyn McClain photographer Buck Ennis senior reporters Joe Anuta, Aaron Elstein, ITTER ENEMIES Mayor Bill de Blasio and Gov. Matthew Flamm, Daniel Geiger Andrew Cuomo reporters Rosa Goldensohn, had raised hopes for a reconciliation Jonathan LaMantia, Caroline Lewis, in December when they dined on branzino Addie Morfoot data reporter Gerald Schifman B web producer Peter D’Amato together at an Italian restaurant in midtown, top columnist Greg David aides in tow. contributing editors Tom Acitelli, Theresa Agovino, Barbara Benson, But the relationship has since bottomed out. De Erik Ipsen, Judith Messina, Cara S. Trager Blasio implied in March that Cuomo orchestrated a ADVERTISING political attack on him in the form of a leaked memo www.crainsnewyork.com/advertise advertising director Irene Bar-Am from the state Board of Elections. A press officer for [email protected] or 212.210.0133 the agency who had earlier worked for state Senate senior account managers Zita Doktor, Jill Bottomley Kunkes, Rob Pierce, Republicans confessed last week to sharing the Stuart Smilowitz damaging memo with the Daily News, prompting senior marketing coordinator LeAnn Richardson Cuomo to say the mayor should apologize. sales/events coordinator Ashlee Schuppius 212.210.0282 “Not going to happen,” said de Blasio, holding fast to the theory that Cuomo played a role. “The [email protected] lines between Democrats and Republicans often blur in Albany.” ONLINE general manager Rosemary Maggiore A spokesman for Cuomo called de Blasio’s stance “officially ridiculous.” 212.210.0237 [email protected] Senate Republicans have long had a working relationship with the governor but hardly would have CUSTOM CONTENT needed impetus from him to expose the memo, in which a Cuomo appointee accused the mayor’s camp director of custom content Patty Oppenheimer 212.210.0711 of fundraising violations in its failed effort to end the GOP’s Senate majority in 2014. The memo’s [email protected] custom content manager author, Risa Sugarman, also demanded de Blasio say he’s sorry, but the mayor’s campaign lawyer, Giovanni Perla [email protected] EVENTS Laurence Laufer, said Sugarman should be the one to apologize—for failing to secure the confidential- www.crainsnewyork.com/events ity of the memo. The mayor’s side has stopped cooperating with her agency, calling it untrustworthy. director of conferences & events Courtney Williams, 212.210.0257 Asked if détente with Cuomo is still possible, de Blasio said, “Hope springs eternal.” — ROSA GOLDENSOHN [email protected] manager of conferences & events Adrienne Yee Hank will go to trial DATA POINT AUDIENCE DEVELOPMENT the 64-campus system for seven director of audience & content Former AIG Chairman Maurice DESPITE RECENT REPORTS OF years. partnership development “Hank” Greenberg will have to face Michael O’Connor, 212.210.0738 DEATH AND VIOLENCE IN THE [email protected] trial for 2005 civil fraud charges. New Bus safety CITY, THE FIRST FIVE MONTHS OF CRAIN’S 5BOROS York’s highest court rejected the 91- In an effort to prevent accidents, the www.5boros.com year-old’s bid to dismiss the state’s 2016 SHOWED A 23% DECLINE MTA is outfitting hundreds of buses Irene Bar-Am, 212.210.0133 suit against him. Greenberg is charged with a new technology that warns [email protected] IN SHOOTINGS AND A 13% DROP REPRINTS with trying to hide the decline in AIG’s drivers and pedestrians of possible reprint account executive Krista Bora loss reserves and mischaracterizing the IN HOMICIDES COMPARED WITH collisions. It is part of a test that will 212.210.0750 insurer’s underwriting losses. THE SAME PERIOD IN 2015, eventually be rolled out on up to PRODUCTION 1,600 city buses. – AMANDA FUNG production and pre-press director Simone Pryce Success Academy drops out POLICE SAID. media services manager Nicole Spell Success Academy Charter Schools SUBSCRIPTION CUSTOMER SERVICE canceled its pre-K program for this fall www.crainsnewyork.com/subscribe [email protected] after refusing to sign a contract with Subway phone service 877-824-9379 (in the U.S. and Canada). the city’s universal pre-K program. The Metropolitan Transportation $3.00 a copy for the print edition; or $99.95 one year, $179.95 two years, for print Success said the deal would give the de Authority is testing Wi-Fi on subway subscriptions with digital access. Blasio administration too much con- cars. The pilot program is taking place to contact the newsroom: trol over its curriculum, daily schedule on four cars on the E line from www.crainsnewyork.com/staff 685 Third Ave., New York, NY 10017-4024 and field trips. Manhattan to Queens. So far, Wi-Fi phone: 212-210-0100 fax: 212-210-0799 and cell service are available in 278 Entire contents ©copyright 2016 Carnegie Hall chair subway stations and are expected to Crain Communications Inc. All rights Carnegie Hall named Robert Smith, be installed in all of the city’s 469 sta- reserved. ®CityBusiness is a registered B&N closes another store trademark of MCP Inc., used under license founder, chairman and CEO of Vista tions by the end of the year. agreement. The book chain is shuttering its Equity Partners, chairman of its board CRAIN COMMUNICATIONS INC. midtown Manhattan location at the BOARD OF DIRECTORS of trustees. He becomes the first Concerts postponed Citigroup Center this month. chairman Keith E. Crain African-American to hold the title and Following a fatal shooting at a hip- president Rance Crain succeeds financier Ronald Perelman, hop concert at Irving Plaza last Barnes & Noble said it could not treasurer Mary Kay Crain, Cindi Crain remain open during Boston executive vp, operations William Morrow who left the post in October after less month, the country’s biggest concert executive vp, director of strategic than eight months on the job. promoter, Live Nation, postponed six Properties’ renovation of the East operations Chris Crain 54th Street tower. The bookseller executive vp, director of corporate rap and rock concerts at the operations K.C. Crain Met Opera’s new tune Manhattan venue as well as at its may return to its space when the senior vp, group publisher David Klein The Metropolitan Opera named Gramercy Theater. upgrades are done, but the closure vp/production, manufacturing David Kamis is in line with its recent plans to chief financial officer Thomas Stevens Yannick Nézet-Séguin its music direc- chief information officer Anthony DiPonio tor, to succeed James Levine, who SUNY chancellor to leave scale back its brick-and-mortar founder G.D. Crain Jr. [1885-1973] stepped down from the post he held Nancy Zimpher, 69, will step down presence across the nation. Last chairman Mrs. G.D. Crain Jr. [1911-1996] for four decades. Nézet-Séguin, 41, as chancellor of New York’s public year, Barnes & Nobles closed its secretary Merrilee Crain [1942-2012] had been the music director of the university system at the end of the stores in Queens.

BLOOMBERG Philadelphia Orchestra since 2012. 2016-17 academic year. She has led

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AGENDA REAL ESTATE

Hudson Yards opening day

A critical report puts a damper on the festivities BY DANIEL GEIGER

o sooner had the Related ed that it would spend as little as Cos. opened its 10 $7.5 million to $205.3 million. Hudson Yards building to The city has had to pour more tenant Coach last week money into the subway project Nthan the Independent Budget Office because of a shortfall of revenue challenged some of the rosy eco- from special payments in lieu of nomic claims the city and the taxes and other fees, including the developer have made about the sale of development rights that are construction project. expected to kick in as more high- According to the IBO, the city rises like the 52-story Coach tower MOVING IN: Related Chairman Steven Ross, has spent $358.8 million over the are built in the neighborhood. right, welcomes Coach past 10 years to help pay the Hud- A report drafted for the city a CEO Victor Luis to 10 son Yards Infrastructure Corp.’s decade ago by the real estate ser- Hudson Yards. interest on $3 billion in bonds that vices firm Cushman & Wakefield paid for the No. 7 subway extension projected that New York would reap and other infrastructure that as much as $986.6 million to $1.3 sparked the development of the far billion from those fees. Instead it estimate as high as $641.5 million. city’s burden. The IBO said that the West Side. collected $845.9 million. With several projects about to city will save $121.1 million in pay- The IBO expects the city to lay The sale of development rights and break ground or in the planning ments it had expected to make in out $116.6 million more through other fees generated $577.6 million stage, revenue from air rights could 2018 and 2019, largely through the 2020. Initially the city had project- over the past 10 years, below an initial grow and potentially lessen the sale of development rights.

1 WTC is hot square feet during the first half of the Long Island City project grows Financial services firm Ameriprise year, on track to reach a 309,000- The de Blasio administration last week Financial is moving to One World square-foot target set by the said it plans to unlock two more devel- Trade Center as leasing for the tower Port Authority. opment sites at Hunter’s Point South, a finally gains momentum. Asking rents for the 78th floor were massive city undertaking on the Long The Minneapolis-based company, $69 per square foot. But Durst is trying Island City, Queens, waterfront that which is currently located nearby at 7 to lease the 86th, 87th, 88th, and 90th will ultimately produce more than World Trade Center, will take 37,000 floors at prices as high as $100 per 5,000 units of housing. square feet on the 78th floor, bringing square foot. — DANIEL GEIGER The two parcels in question are at the occupancy rate at the 104-story the southernmost tip of the 30-acre tower to nearly 70%. Flushing West scrapped project area, where the city envisions In 2015, the Durst Organization, The city’s planning department retail, a new school and at least 750 which co-owns the 1,776-foot tower abruptly scrapped its efforts to turn 11 apartments—with 450 or more being with the Port Authority of New York industrial blocks in Queens between permanently affordable. The Depart- managing director of 1776 in January. and New Jersey, leased 178,000 square the polluted Flushing Creek and the ment of Housing Preservation and 1776, which invests in education, feet, above a 154,536 square foot target terminus of the No. 7 train into a new Development is seeking design pro- health, transportation and sustain- for the year. neighborhood, Flushing West. The posals from developers and will ulti- ability, will advise New York compa- This year, Durst is on track to location was set to be one of 15 areas mately select a team to execute the nies and the Brooklyn Navy Yard’s exceed that threshold. The deal with that would be targeted for residential project. startup community on regulatory Ameriprise brings leasing activity at development in order to advance the The sites, between 56th and 57th issues and partnerships with groups the building to more than 250,000 mayor’s affordable-housing agenda. avenues, are two of seven that consti- including think tanks and govern- The about-face means that the city tute the overall Hunter’s Point South ment agencies. will have to look for another neighbor- project authorized by a 2008 rezoning BLDG 77 will have a food manufac- hood to be part of the 15 rezonings under the Bloomberg administration. turing hub on its ground floor that will Mayor Bill de Blasio promised in spring The first two parcels, between include the new headquarters of 2014, when he announced his Housing Borden and 50th avenues, were Brooklyn Brewery and a food hall fea- New York plan. So far, the city has completed last year by a team led by turing New York favorite Russ & approved only one overhaul, in the Related Cos. — JOE ANUTA Daughters. — MATTHEW FLAMM Brooklyn’s East New York. A rezoned Flushing West would Brooklyn, circa 1776 NYU Lutheran expands have potentially sprouted 1,600 The Washington, D.C.-based business NYU Lutheran is expanding in Sunset apartments, affordable and market- incubator known as 1776 is getting a Park, Brooklyn, near the Brooklyn rate. But the proposed development Brooklyn address as the anchor tenant Army Terminal. The hospital, acquired sites in Flushing West would have of a 1 million-square-foot former by NYU Langone on Jan. 1, paid $12.1 had to comply with strict height industrial warehouse known as BLDG million in an off-market deal for restrictions owing to their proximi- 77 at the Brooklyn Navy Yard. The de 32,000 square feet at 5718 Second Ave. ty to LaGuardia Airport. Blasio administration has invested $100 in Brooklyn, which is down the street Additionally, Flushing Creek and million in the new building. from the hospital and Lutheran’s the nearby Flushing Bay are home to The building is set to open next year Sunset Park Family Health Center. some of the five boroughs’ most following a $185 million renovation. The hospital paid $378 per square active combined sewer overflow The top floor will be occupied by 1776. foot. Robert Klein, a broker with pipes, which release raw sewage Rachel Haot, who became New York’s Kalmon Dolgin Affiliates, said that during heavy rains. Queens first chief digital officer under the was “a bit above market” but NYU Councilman Peter Koo argued that Bloomberg administration, will over- Lutheran acted quickly because the adding more housing would only see the new offices. A Crain’s 40 Under property wasn’t yet listed.

BUCK ENNIS, MARVEL ARCHITECTS increase the burden. — JOE ANUTA 40 honoree in 2011, she was named a — JONATHAN LAMANTIA

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AGENDA WHO OWNS THE BLOCK REAL ESTATE

RENDERING OF 220 W. 57TH ST. Busy Billionaires’ Row area could get another pricey project Sale of landmark Lee’s Art Shop building paves way for as much as 126,000 square feet of development

BY TOM ACITELLI

he once stately and sedate stretch of West 57th Street best known for Carnegie Hall, the Art Students League and luxury shops such as 217 W. 57TH ST. TTiffany & Co. and Bergdorf Goodman, has 232 W. 58TH ST. In assembling land and financing for its been reborn as Billionaires’ Row, home to the Carl Delmer sold this building to Extell 57th Street tower, Extell Development tallest and most expensive apartment towers Development in July 2013 for $25 mil- sold this parcel to a firm controlled by in New York. Last month, the Steinberg fam- lion. Delmer also owned the Beethoven Nordstrom in July for $102.5 million. Pianos retail shop that occupied the Nordstrom will have a seven-story, ily agreed to sell Lee’s Art Shop’s four-story property. It was the last piece of the 175,000-square-foot store at the base home at 220 W. 57th St. to a pair of develop- footprint for Extell’s condo tower and of the tower. Also included in the ers, adding another pricey project to a street was also part of Extell’s $102.5 million $102.5 million sale were 216, 226 and deal with Nordstrom. 232 W. 58th St. Extell had acquired that remains in play. 217 W. 57th St. in June 2005 for Thor Equities, the Manhattan commercial $15.19 million. real estate development firm led by Joe Sitt, and General Growth Properties, a Chicago- based shopping mall owner, have agreed to close this month on the $85 million purchase of the landmarked Lee’s build- 220 W. 57TH ST. ing. The partners have not 250 W. 57TH ST. Thor Equities and General Growth Propert- yet announced their plans for ies are in contract to buy the Lee’s building. the 8,400-square-foot lot, Malkin Properties sold the 24-story, The contract is expected to close this which could support as much 435,677-square-foot office building month. Built in 1897 as the home of the to a trust it created in 2013. The American Society of Civil Engineers, it was as 126,000 square feet of new Empire State Realty Trust paid acquired by the Steinberg family in 1995. development above the land- $169,954,539. The Malkin family With its landmark exterior, the 22,000- marked exterior. has controlled the building, whose square-foot store could become a flagship tenants include Mandarin Oriental location for a high-end retailer. At 217 W. 57th St., Extell Management and United Talent Development, led by CEO Agency, since the late 1990s, and at Gary Barnett, is building one present has no plans to redevelop it. of the tallest residential buildings in North America: a 1,550-foot condo that is expected to be finished in 2019, 200 W. 57TH ST.

and that will rival supertall towers 432 Park In April, the Feil Organiza- Ave. and One57, further east on tion, a Manhattan landlord, 57th Street. and Rockpoint Group, a Boston-based private equity Extell assembled several 1780 BROADWAY firm, bought an 83.5% stake parcels for what it’s calling Extell Development bought this property, in this 16-story, 125,000- Central Park Tower, which will also called 225 W. 57th St., for $57.5 square-foot office building for $120,448,750. Feil, led have a seven-story, 175,000- million in July 2006. It became part of by CEO Jeffrey Feil, borrowed square-foot Nordstrom depart- the $102.5 million sale to Nordstrom of lots and buildings in the footprint of $91 million from Wells Fargo ment store—scheduled to open Extell’s 1,550-foot condo tower. that month. Feil previously co-owned the building, which in 2018—at its base. To help 125 W. 55TH ST. houses West Park Medical finance the tower, a number of Group and TUC Manage- the parcels were sold to Nordstrom-con- JPMorgan Asset Management ment, with RGC Longview, a trolled firms before construction began. acquired the 23-story, 590,000- real estate group Feil also square-foot office building in May co-owned. There are no Some of the older office buildings in the area 2013 for $470 million from a plans currently to convert it. surrounding 220 W. 57th St. have recently been partnership led by Boston sold. No plans have yet been filed for them to Properties. The partnership included Dubai-based private- join the construction rush. Investors instead equity firm Meraas Capital and appear to be holding—perhaps anticipating the Goldman Sachs’ U.S. Real Estate increase in value they may see from their prox- Opportunities Fund. The partnership had acquired the building imity to a luxury condo tower. Ⅲ five years before for just under $444 million. W.AINCNT,COURTESY THOR EQUITIES WWW.OASISNYC.NET.,

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AGENDA HEALTH CARE

Keeping New York’s aging BRENDA ROSEN population out of the ER President and chief executive of Breaking Nonprofit saves taxpayers money in program that shows promise BY JONATHAN LAMANTIA Ground

nonprofit Brenda Rosen, Breaking nonprofit believes shar- who were tracked, 155 Rosen said the pilot cost tions and expand these has found Ground’s CEO. “They’ve ing the lessons it learned adults received medical less than $2,000 a per- services and look at these that when its finally found a place could help more people services and 357 accessed son, a figure low enough results over a longer elderly resi- where they have a de stay at home rather than such services as guidance that other organizations period of time and for Adents had health care facto family, and all of a receive services in a on preventing injuries might adopt the model. more people,” she said. plans tailored to their sudden they can’t stay skilled-nursing facility. that can often land older “The hope is to use this “It’s the beginning, not specific needs, the there anymore.” The Beyond the 41 seniors adults in the hospital. to spur further conversa- the end.” Ⅲ number of days they spent in hospital emergency departments dropped by 72%. Breaking Ground, which describes itself as the city’s largest pro- vider of institutional housing coupled with social services, con- ducted a two-year pilot program that followed 41 residents, ages 62 Kenneth Woods PRESIDENT AND CEO and older, who received SYLVIA’S RESTAURANT regular visits from health care providers. They participated in wellness activities like trips to farmers’ markets to promote healthy eating and diabetes management classes. The 41 low-income residents lived in three of Breaking Ground’s 19 properties—two in Adding flavor to Manhattan, one in Brooklyn—and spent a total of 109 days in the the community. emergency room or hospital in 2012. But by 2015, they spent only 31 days in those settings, which Breaking Ground estimates saved taxpayers $177,000. Understanding Providing health care services to poor elderly New Yorkers what’s important. could take on increas- ing importance as the city’s population ages. By 2030, the number of city residents over the age of 64 is projected to Sylvia’s Restaurant is a true Harlem institution. If you’ve ever had their special brand of soul food, you know exactly why. be 1.35 million, an Owner Kenneth Woods also prides himself on treating customers like family. And Kenneth sees that same quality in increase of 44% over the year 2000. M&T Bank. He began his M&T relationship with a personal loan, but quickly became aware of what we could do for his Breaking Ground has business and family. The relationship has grown stronger, with Sylvia’s and M&T teaming up as active members of the been working since /commercial. 2013 on the Elder Care neighborhood and community at large. To learn how M&T can help your business, visit mtb.com Health Outreach program, which was fund- ed through $560,000 in contributions from five foundations. “It really began as, ‘What can we do because we want peo- DEPOSITORY AND LENDING SOLUTIONS | TREASURY MANAGEMENT | MERCHANT SERVICES | COMMERCIAL CARD ple to continue to live in our housing with dignity for as long Equal Housing Lender. ©2016 M&T Bank. Member FDIC.

COURTESY OF BREAKING GROUND as they can?’” said

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AGENDA ASKED & ANSWERED TECHNOLOGY INTERVIEW BY MATTHEW FLAMM

JESSICA LAWRENCE QUINN NY Tech Alliance

he NY Tech Meetup, a mainstay of the city’s tech scene We won’t be since 2004, is no more.The host of the monthly “competing for Tuesday night geekfest, where Foursquare and Tumblr funding, and we made their New York debuts, has merged with the New won’t need to TYork Technology Council, an industry advocacy group founded in duplicate 2009.The two organizations made it official on June 6: They are now the NY Tech Alliance, with a combined membership of more than efforts 60,000 and a mission to bring diversity to the industry and to help both large and small companies grow. Jessica Lawrence Quinn—NY Tech Meetup’s executive director since 2011—is now the Alliance’s chief executive.

Why join forces? I’ve been working in nonprofits for my entire career. One thing I’ve noticed is nonprofits tend to merge and combine forces very infre- quently. Lots of organizations [with overlapping missions] refuse to consider working together. It means neither is as strong as it could be, because both are competing for the same resources and missing out on efficiencies.

How were your two tech organizations different from each other? NY Tech Meetup was always focused on individuals; New York Technol- DOSSIER ogy Council was more focused on the corporate level. In the long run WHO SHE IS Chief we’ll be a bigger organization serving more people. We won’t be com- executive, NY Tech peting for funding, and we won’t need to duplicate efforts. Erik Alliance Grimmelman [the Council’s CEO, who is now the Alliance’s president] AGE 37 can concentrate more on policy and advocacy, and I’ll concentrate more on community programs and improving diversity in the industry. BORN Concord, New Hampshire Fred Wilson and Tim Armstrong recently founded Tech:NYC to advocate for RESIDES Williamsburg, the industry. Why all this activity now? Brooklyn The tech industry in New York City is maturing. Even tech companies EDUCATION University based in Silicon Valley are really interested in having representation of Maryland, B.S. in here. [The activity] is an overall sign of how important tech is to New psychology York City’s economy and to the city as a whole. LIFE STAGES Known as Jessica Lawrence What does the alliance offer for people who don’t go to Meetups? until very recently, Quinn got married two years There’s no point in building this industry if it doesn’t make life better ago, but it took a while for everyone. That means focusing on getting tech education into for the name-change schools and making sure that citizens are supported by great technol- paperwork to go ogy within government. And we need to have more diversity within tech through. She has also companies because that lends itself to more products being devel- launched a startup of oped that are helpful to every citizen of New York. another kind—a baby girl named Emma. Is New York getting over being a distant No. 2 to Silicon Valley? TYKE-COONS? Quinn I’ve never found those comparisons actually to be helpful. There have started her career in been enough successes here that the focus is now on what is unique nonprofits at the Girl Scouts of about New York, and it’s not just a dollar-for-dollar comparison of how San Gorgonio Council in Southern much VC money is coming in and how many companies are exiting. California, where she rose from There are so many other industries. New York has always been a “tech fundraiser to CEO. She likes to say that’s where she learned to work with young BUCK ENNIS and” city: tech and fashion, tech and advertising. And there’s a lot of entrepreneurs. tech that has a social-good component. We’re stronger in that area.

Speaking of venture capital, what do you see happening here if investment slows down, as it has elsewhere? I’m seeing people look for alternative ways to build tech companies that aren’t solely venture-capital backed. That could mean bootstrap- ping or doing a more social-good-focused tech company, for which you might get alternative funding through a foundation or government. Or people are looking to have their project supported through crowdfund- ing, Kickstarter or angel investors. So, seeing that there may be a slowdown, people aren’t deciding they don’t want to build a tech company. They’re getting more creative about how. Ⅲ

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AGENDA VIEWPOINTS

Cuomo has escaped voters’ foul mood, but how long can that last? Probes and convictions have sunk politicians’ approval ratings, and the guv may be next

LIKE AMERICANS time budgets every year that held governor has avoided any tarnish, NET FAVORABILITY RATING everywhere, New overall spending to modest increas- on this and on his failure to deliver Yorkers are in a foul es. He’s done that while pushing on the ethics reform that he made NEW YORK CITY mood about politi- through or agreeing to cuts in the centerpiece of his first cam- Andrew Cuomo cians. But there is three politically sensitive taxes— paign for governor, or for shutting 37 one notable excep- property, income and business. He down his Moreland Commission Hillary Clinton tion: Gov. Andrew has also co-opted the once restive corruption panel, which was on the 20 Cuomo. The ques- progressive wing of the scent of the actions that led GREG DAVID tion is whether he Democratic Party with his to the convictions of leg- Bill de Blasio can maintain that successful advocacy of a $15 islative leaders Sheldon -6 status. minimum wage and paid % Silver and Dean Skelos. Donald Trump Consider his favorability ratio sick leave. He has cemented 60 Consider the contrast -57 compared with those of the mayor his ties to unions, especially OF NEW with de Blasio, whose poll -60-50 -40 -30 -20 -10 0 10 20 30 40 and the two likely presidential by backing union labor on YORKERS numbers slid sharply when nominees, according to the most New York City affordable- view Cuomo headlines of not dissimilar NEW YORK STATE recent Siena poll, which provided housing projects. as ethical probes of his administra- Andrew Cuomo breakouts for geographic regions. OK, that is an impressive tion gathered momentum. 14 (The favorability ratio is the per- list. But Siena’s most startling find- This disparity must be quite a Hillary Clinton centage of voters with a favorable ing is that 60% of New Yorkers source of frustration for the mayor. -5 opinion minus the percentage with believe Cuomo to be an ethical pub- It may be that amid the presiden- Bill de Blasio lic official, even as investigations tial campaign, voters aren’t paying an unfavorable opinion.) Statewide, -14 Cuomo is the only one with a posi- deepen into potential corruption in attention. (One data point: Seventy Donald Trump tive number. He is much more pop- his much-touted investment of bil- percent of voters have no opinion -31 ular than Hillary Clinton, even lions of dollars in upstate economic of the prime investigator—U.S. -35 -30 -25 -20 -15 -10 -5 0 5 10 15 in New York City. His political development. Attorney Preet Bharara.) Or maybe nemesis, Mayor Bill de Blasio, is in The governor’s closest aide has they don’t care. The answer won’t Source: Siena poll, May 2016 negative territory, both with his been ensnared, as has the state offi- become clear unless the scandal constituents and statewide. cial Cuomo made the go-to person results in charges that implicate the GREG DAVID blogs regularly at The governor has completed on- for his upstate-spending binge. The governor in some way. Ⅲ CrainsNewYork.com.

Free parking? What free parking? Try Anthony Weiner’s idea to create spots

YOUR MAY 16 editorial Can we really put yet about “free parking” another challenge in begs the question, front of this belea- where is this free park- guered population? ing? New York City Instead of charging motorists pay some of for parking, we should the highest state and re-examine an excel- local taxes in the coun- lent suggestion made try, high car registration during the last mayoral fees, ridiculous insur- campaign by candidate ance rates, and exorbi- Anthony Weiner. He tant tolls, ticket prices suggested that we and indoor parking fees. could free up nearly To suggest they should 100,000 parking spaces pay yet another fee to if we merely reduced park their cars on the the amount of clear- streets is another shot at ance space for fire the middle class and the hydrants from 15 feet to poor. 10 feet! City motorists have Weiner has had his been besieged by the personal problems, but challenges of bike no one ever said he was lanes, bus lanes, Citi dumb. Bike racks and now an ROBERT MASCALI invasion of Uber cars. Dyker Heights, Brooklyn

CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to [email protected]. Send columns of 475 words or fewer to [email protected]. Please include the writer’s name, company, address and telephone number.

JUNE 6, 2016 | CRAIN’S NEW YORK BUSINESS | 11 20160606-NEWS--0012,0013-NAT-CCI-CN_-- 6/3/2016 2:39 PM Page 1

AGENDA THE LIST NY AREA’S LARGEST ARCHITECTURE FIRMS Ranked by number of area architects

(From left) 10 HUDSON YARDS, Kohn Pederson Fox Associates (No. 1); TURKEVI CENTER, Perkins Eastman (No. 2); BARNARD COLLEGE TEACHING AND LEARNING CENTER, Skidmore Owings & Merrill (No. 5); 520 PARK AVE., Robert A.M. Stern Architects (No. 7); 620 FULTON ST., Francis Cauffman (No. 19)

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12 | CRAIN’S NEW YORK BUSINESS | JUNE 6, 2016 20160606-NEWS--0012,0013-NAT-CCI-CN_-- 6/3/2016 2:39 PM Page 2

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TRANSPORTATION | CHOOSING YELLOW

FAMILY BUSINESS: Brinto Rashed (wearing blue) with his older brother Abu Shahed (in pink), his younger brother Ali Eftear behind Shahed, and an uncle and two cousins. They’re choosing to drive taxis rather than for Uber.

rinto Rashed worked six days a next 12 hours. George stressed that business was week driving for the restaurant still not as strong as it used to be. He estimated delivery business he started, sav- that about a third of the garage’s more than 350 THEY’RE ing up so he could do what he cabs were going unused. A year ago, half sat thought would really make him idle. money: driving for Uber. But taxi executives are seeing glimmers of a But no sooner had he and his younger broth- comeback, and drivers might be the ones to OVER Ber, Ali Eftear, bought Lexus and Acura sedans benefit the most. Ron Sherman, president of the than the two scrapped their plan and started industry group the Metropolitan Taxicab Board spending their days behind the wheel of a yel- of Trade, and one of the larger fleet owners, says low cab. Now they’re telling everyone in their his business is up about 10% this year. “And it’s UBER extended family to do the same. 100% because of having more drivers,” he said. “It’s all about money,” Rashed, 29, said. The yellow-cab industry “Where you get more money, run there.” American dreamers Some might think Rashed and his brother Nowhere is the shift back toward yellow cabs shows the first inklings made a wrongheaded move. Uber, after all, has clearer than outside the three-story home of a comeback. pummeled the cab business ever since the San Rashed and his extended family rent on a quiet Francisco-based company gained traction in street in Richmond Hill, Queens. Meanwhile, in a driveway in New York in 2014, luring drivers away with In the driveway and along the curb nearby Queens, Brinto Rashed’s $5,000 bonuses and creating so-called taxi sat the six cars family members have purchased graveyards, where garages fill with empty cabs. since they started emigrating to the United black Lexus sits idle The app-based service says it now has 36,000 States from Bangladesh five years ago. Three are drivers in New York. for the restaurant delivery service, two were BY MATTHEW FLAMM But the brothers believe they made a narrow intended for Uber and one, a yellow Toyota escape. The yellow-cab industry, which had RAV4, is for the family’s newest endeavor: long operated with little competition, is now driving a taxi. offering drivers better terms, while Uber has On a recent Tuesday—the designated one day gained a reputation as a cutthroat player with off for the family’s five breadwinners—the RAV4 little regard for its driver “partners.” For the rested across the street, where Eftear, 25, parked first time since the service started shaking up it when he returned home at 1 o’clock that morn- the ride business, a driver migration appears to ing. It wouldn’t be going out again until Rashed be flowing the other way—back to yellow. began his shift the next day at 6 a.m. “We were dead a year ago,” said the manag- Inside, Rashed’s aunt cooked a lunch of cur- er of White and Blue Taxi in Long Island City, ried chicken, beef and fish. His wife played with Queens, who gave his name only as George. the couple’s two small children, while a young Outside his lot during a recent weekday shift cousin, who works nights making deliveries in

BUCK ENNIS change, drivers lined up to lease a cab for the Manhattan, pulled the covers over his head on a

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nearby mattress. the vehicle an exclusive right to street hails, But yellow-cab medallion owners are mak- “I was doing experiment,” Rashed said as he dropped after taxis began to go idle. Rashed ing a lot less than they used to. Competition plopped on the couch upstairs. A new 65-inch noted that the weekly price was $1,200 six from Uber has eaten into the number of New curved Samsung TV played a Meghan Trainor months ago, or 21% more than he pays now. His Yorkers raising their hand on a street corner. music video. Sipping a Dos Equis, Rashed expenses run about $1,325 a week, including expanded on one of his favorite subjects: why $275 for the cab he bought and $944 for the Buyer’s remorse it’s better to drive taxis than work for Uber, and medallion he rents, which includes insurance. It’s been particularly painful for cabbies who how he and Eftear avoided a big mistake. The brothers each net as much as $1,500 a week own their medallion, like Samuel Tekoh, 61, It all started in 2014, when working for Uber and keep their shifts to just eight hours except who bought his in the early 1990s for $190,000. seemed a good deal. “I asked friends who drive for the busy nights at the end of the week. Like many other medallion owners, he has bor- Uber,” Rashed said. “I asked my older brother, Tips, which Rashed says 99% of taxi passen- rowed against the asset over the years and now who drives a yellow cab.” gers give, were another selling point. Unlike has trouble making payments. He said that was The good things he had heard about the com- Uber, rival car services Lyft, Gett and Juno (see primarily because of how much his business pany came to be overshadowed by complaints. sidebar p. 16) include tips in their apps. was down from where it was before Uber. The company raised its commission for new Then there are the airports. Each brother “You have to work harder,” said Tekoh, who drivers to 25% from 20%, and in January begins his day—Eftear around five in the grosses around $300 a day compared to $450 announced a 15% fare cut in New York. It had evening and Rashed at six in the morning— prior to Uber. “Before, I could pay all my not even warned its drivers, who went on a lining up at John F. Kennedy International, and expenses.” brief walkout and said they would now have to generally each scores a ride within an hour. The most recent TLC statistics continue to show work longer hours to make the Uber’s impact. Total taxi trips for same amount of money. “When I January through April 2016 came to saw the pay cut, and Uber drivers “WHEN I FIRST COME TO THIS COUNTRY, I about 1.5 million, 11% below the going on strike, I decide: I will go WORK IN A GROCERY STORE FOR $200 A same period last year and 23% straight to medallion,” Rashed below those same four months in said. WEEK.TAXI WILLBE ATHOUSAND 2013, before the app-based service He was not the only one. In DOLLARS.THATIS THE WAY UP” gained traction. January 2016 there were 6.2% “The entry of Uber and its imi- fewer yellow-cab drivers on the tators has created a race to the road than in the same month of 2015. By April, Uber drivers often complain about the diffi- bottom,” said second-generation taxi operator with 30,488 drivers, the gap with the same culty of obtaining rides at airports, where, like Allen Weingarten. A co-owner of Taxifleet month in the prior year had narrowed to 3.4%. everywhere else, they are not allowed to pick Management in Woodside, Queens, he leases The city has helped, starting with piloting a up a passenger unless they’ve been summoned Rashed and Eftear their medallion and sold “universal license” in December that lets driv- via the app. them their cab. “It is difficult for anyone—Uber ers move freely between driving taxis and Rashed is doubling down on cabs. He plans to drivers or medallion owners—to operate prof- black-car services, such as Uber. So has Uber’s buy another RAV4 in the coming months for two itably,” he said. growing reputation for undermining its drivers. young cousins to share. And he just made a Meanwhile, the number of drivers Uber signs “Uber’s treatment of its drivers is a liability for down payment on a RAV4 for two older broth- up keeps growing by about 500 drivers a week the company at this point,” said Brishen Rogers, a ers. (The Lexus and Acura purchased for Uber in New York. The company said it has not seen Temple University law professor who specializes are not among the model vehicles approved for any increase in attrition, though a spokesman in labor issues. “The way they’ve changed the use as a taxi.) declined to say what the attrition rate was. terms of their driver agreements without notice, “When I first come to this country, I work in a Uber also says its relationship with drivers for someone who has made a significant invest- grocery store for $200 a week,” said one of his will improve now that it’s working with the ment in a vehicle in order to drive for Uber, that brothers, Abu Shahed, 40, who arrived from recently formed Independent Drivers Guild—an has to be incredibly frustrating.” Dhaka, Bangladesh, in 2012. He then worked in a affiliate of the International Association of The Metropolitan Taxicab Board of Trade says hotel, in construction and now in the restaurant Machinists District 15—which is representing all it has signed up 2,200 drivers for the new delivery business, his weekly wages rising to drivers. In addition, the company maintains license at its Long Island City driver center, and around $700. “Taxi will be a thousand dollars a that the fare cuts have stirred up demand. about 85% went on to drive cabs. Some 350 week,” he said. “That is the way up: step by step.” CONTINUED ON PAGE 16 came over from Uber. Three who spoke to Crain’s said they earned more money, in fewer hours, driving yellow. “Yellow cab is better for me,” said Masud Pervez, who worked for Uber about six months last year—putting in 12 hour days, six or seven days a week—but switched to cabs in December. He says he clears $1,500 a week now, compared with around $700 with Uber after the company took its 25% commission and he paid car and gas expenses. Uber doesn’t dispute his earnings but says he worked only an average 38 hours a week. The data, though, only accounts for the time the app is turned on. Pervez said he would work mornings and evenings, and take a nap in between. He would also turn off the app when looking for parking, eating meals, taking breaks or when driving back from a trip out of the city. The financial pressure on fleet and medallion owners from Uber’s army of drivers has helped make yellow cabs a bargain for drivers. The cap on cab leases—the maximum amount set by the Taxi and Limousine Commission that owners can charge for rentals—hasn’t risen in 12 years, with UBER, CIRCA 2014: When the company the peak night-shift cap at $129. And fleet owners was first making inroads in the city, it are likely to offer discounts of 10% to 20% below offered big bonuses. Now, the company is the cap, insiders say. cutting into drivers’ earnings. The rate for leasing a medallion, the piece of

BUCK ENNIS aluminum bolted to the cab’s hood that gives

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TRANSPORTATION | CHOOSING YELLOW

Average hourly earnings for those who drive UberX—the basic service—have gone up by 17% in New York, the company said on its blog one month after the cuts went into effect, adding that drivers were working fewer hours. The post also noted big jumps in ridership in the boroughs outside Manhattan. Fleet owners, independent medallion owners and others continue to fight back. They plan to rally at City Hall on June 22—the kickoff for a campaign urging the city to take a more aggressive stance with their app-based competitors. The advocates want limits on the number of vehicles—the very reason medallions were created in the 1930s—and “regulatory parity,” starting with wheelchair accessibility require- ments for Uber and others that would be in line with those set for cabs. Uber is also facing another class-action suit— it recently settled one in California—charging the company with misclassifying its drivers as independent contractors rather than employees. The suit, brought by the New York Taxi POACHING DRIVERS: Juno CEO Workers Alliance and Uber drivers, was filed in Talmon Marco has lured Uber drivers by offering better terms. federal court in Manhattan last week. Some experts see little chance for a turn- around of the taxi industry, however, and expect Uber to continue shrinking drivers’ incomes as the service expands and becomes just as convenient for riders as a cab. JUNO: UBER FOR THE ANTI-UBER CROWD “If you can press a button and the Uber car will be there in less than two minutes, it’s not THERE ARE A HALF-DOZEN RIDE SERVICES in New York. Only Juno wants to be the anti-Uber. all that different from hailing a cab,” said Evan Whereas Uber has been hit repeatedly with class-action suits charging it with misclassifying its drivers Rawley, a Columbia Business School professor as independent contractors instead of employees, Juno is offering drivers the chance to become employ- who has written on the taxi industry. “I don’t ees—and get benefits and company stock. know if yellow cabs will hold on to 50% of Uber upped its take of drivers’ fares last year to 25% (those who started before April 2015 kept their [their market], or 25%, but Uber will eat into 20% rate) and in January cut fares by 15% with barely a word of warning. Juno will keep fares on par with their market share, and continue to eat into it.” Uber’s but take a 10% commission—and hold it at 10% for 24 months. Founder and Chief Executive Right now, none of that weighs on Rashed Talmon Marco says if the commission goes up in two years, it would be by a tiny amount, and drivers will and his brothers, who believe there will always be consulted. be plenty of people who want to step out on the Uber has refused to add a tip function to its app. Juno has one. street and hail a taxi. “Uber is an ethically broken company,” Marco said. “If you have a company that is not ethical deliver- “I’m going to do this for the next 10 years,” ing a certain service, it raises the need for one that is.” Rashed said before the extended family began Juno is still trying out its app and could not give an official launch date. preparing to pack into a caravan of cars and Uber declined to comment but says that its drivers want the flexibility that comes with contractor sta- head out to a kebab dinner in Jackson Heights. tus and that their earnings are higher than ever. They are not placing all their bets on taxis. The Israeli-born Marco, 43, is best known for founding the messaging app Viber—and selling it in 2014 They will continue to operate their delivery to Japanese e-commerce giant Rakuten for $900 million. Marco hasn’t raised any money from venture business, which serves 16 restaurants in Forest capitalists, relying instead on friends and family. He says that treating drivers well is good business. Juno Hills and Kew Gardens. More than a dozen free- relies on word of mouth, not ads on buses as Uber does, and has signed up 8,500 of Uber’s highest-rated lance drivers make the deliveries, along with drivers. They will display a Juno promotion on their dashboard mobile devices—while driving for Uber—and cousins and in-laws. get $15 for every passenger who books a Juno ride. But the families are also secure enough in “The goodwill of the drivers will be reflected in the way they treat our riders,” Marco said. “Our cost of their gamble on cabs that they plan to stop getting riders is going to be lower [than competitors’].” renting and buy a house in their Richmond Hill Ride service experts point out that while some drivers may be unhappy, riders are generally quite sat- neighborhood next year. isfied with Uber and Lyft. “What’s Juno going to do differently that’s going to attract riders from these “We didn’t think, ‘What is going to hap- established brands?” asked Quin Garcia, managing director at AutoTech Ventures and a Lyft adviser. pen?’” Eftear said, explaining the decision to Others are not counting Juno out. “Happier drivers can provide a better service,” said Christian Noske, buy their RAV4 rather than lease by the day or a principal at BMW i Ventures. “The dynamics in New York can change very fast.” — MATTHEW FLAMM week. “We think, ‘We have guts. We can make it.’ And we are making it.” Ⅲ

BUCK ENNIS BUSIER TIMES: With gas lower and driver leases cheaper, taxi garages have started to come back to life. Here, drivers prepare for a new shift at 55 Stan in Long Island City, Queens.

16 | CRAIN’S NEW YORK BUSINESS | JUNE 6, 2016 20160606-NEWS--0017-NAT-CCI-CN_-- 6/3/2016 3:59 PM Page 1

ENTERTAINMENT | BROADWAY BUCKS

The backstage story of Mormon features nail- biting risks, collateral damage and ultimately a happy ending. Produced for $9.4 million, Mormon has distributed $81 million of profits as of February 2015 (the latest data available), according to financial statements of four years of Mormon’s Broadway production, obtained by Crain’s through a Freedom of Information Law request to New York State Attorney General Eric Schneiderman. (The statement excludes figures from two U.S. tours and a London engagement.) Just under half of the show’s continuing profits ETERNAL LIFE: Five years after go to producers, and most of the rest to opening, The Book of Mormon investors, according to the prospectus of Book still sells out on Broadway. of Mormon Broadway LLC, the investment vehicle behind the show. In addition, royalties of $63.5 million paid from operating profit were shared by the three writers, four lead producers, about a half-dozen other members of the creative team, plus members of the original cast who participated in preproduction workshops. (As reported in Crain’s in April, the cast of INSIDE THE BOOKS Hamilton fought for and won a similar arrangement from its producers.) Cut to the chase Based on that 2010 industry workshop, OF MORMON Berlind became a co-producer of The Book of Mormon, along with eight others. Co-producing credits are given to investors and money-raisers As Hamilton rides a critical and hen banker turned above a certain threshold, entitling them to Broadway backer Roger some of the profits and eligibility for Tony popular wave to Tony Awards Berlind, producer of Nine Awards, but they’re seldom involved in actual- history, Crain’s examines how and Proof, was invited to a ly running the show. workshop for a frolicking The ones who call the shots are the lead pro- rule-breaking shows make money musical satire about hap- ducers. Mormon has a formidable one in Scott less American missionar- Rudin, one of only 12 people in the world who has BY PHILIP BOROFF iesW transported to a war-torn, AIDS-ridden vil- won Emmy, Grammy, Oscar and Tony awards. lage in modern Uganda, he was instantly, if (He would win the Grammy for Mormon’s cast improbably, won over. Mocking Mormonism, recording.) The other lead producers are iPhones and American parochialism, the musi- Broadway newbies and show co-creators Stone cal was in questionable taste. Nevertheless, “I and Parker, through their company Important was hooked in one second,” said Berlind. “I was Musicals LLC, and Anne Garefino, execu- ready to mortgage my house.” tive producer of South Park. The show’s Berlind’s instincts were spot-on. Written spokesman, Chris Boneau, declined to by Trey Parker and Matt Stone, creators of comment for this article or to make the the animated television series South Park, producers available. and Robert Lopez, co-creator of Avenue Q, CONTINUED ON PAGE 18 The Book of Mormon became a runaway Broadway hit—and an uncommonly ALMOST FAMOUS: lucrative investment. In a business in Casting unknown which seven out of 10 Broadway shows actors in lead roles helps the fail to repay their investors, the production keep Broadway run of Mormon has earned a costs low. return of more than 500% in five years, besting Amazon, Google, Netflix and the Dow Jones Industrial Average. As producers of a certain hip-hop musical about the Founding Fathers aim to sweep the Tony Awards on June 12, the lesson of Mormon and now Hamilton is that despite the entertainment industry’s affection for the tried- and-true, nothing attracts Broadway audiences like originality. Mormon’s producers upped the ante with a series of bold choices in introducing the show—particularly shunning the traditional pre-Broadway tryout—that heightened the financial risk and reward. The experience of Mormon and its $424 million in Broadway sales are in some ways unique, but the show in other ways serves as a template Hamilton has followed. For example, advertising for both musicals emphasizes the shows themselves rather than individual performers, a strategy that aims to insulate sales from cast changes. And with high prices and moderate operating expenses,

GETTY IMAGES they’ve delivered outsized profits.

JUNE 6, 2016 | CRAIN’S NEW YORK BUSINESS | 17 20160606-NEWS--0018-NAT-CCI-CN_-- 6/3/2016 4:19 PM Page 1

ENTERTAINMENT | BROADWAY BUCKS

Mormon generated buzz from its earliest days. agency GreatWhiteWay.com, assisted a church After the first workshop in 2010, the New York from Philadelphia that waited a year for a 54- Post’s occasionally catty theater columnist, seat block. “Everybody from the church wanted Michael Riedel, published a flattering column to go see it,” he said. “The media presence and that noted that Stephen Sondheim was a fan of TV ads made them want it more.” Parker and Stone’s 1999 animated movie, South Hamilton appears to be following a similar Park: Bigger, Longer & Uncut. Months later, the playbook. Tickets to the show, which will open powerful chief theater critic of The New York a Chicago engagement in September, are the Times, Ben Brantley, singled out Mormon as a hardest to come by in the city, yet it still adver- show he was looking forward to. “Could a cou- tises ubiquitously, including on buses. ple of guys from the world of cartoons become The 2001 production of The Producers had a the new [Betty] Comden and [Adolph] Green?” more traditional marketing strategy. A star vehi- Brantley asked. “Don’t rule out the possibility.” cle, The Producers lavished attention in all their Rudin made a brazen gamble. Instead of the ads on its principals Nathan Lane and Matthew usual path of trying out the show off-Broadway or Broderick, who did not disappoint by filling seats. literally out of town in Chicago; Washington, Once tickets became scarce, “we laid back on D.C.; or La Jolla, California, Rudin advertising,” said Marc Routh, one opted to start at the finish line. In of the show’s producers. “Why sell 2011, he told the Times that Mormon HOURS AFTER ITWON NINE TONYS IN something when we didn’t have canceled a planned engagement at open seats to sell? When we did the nonprofit New York Theatre 2011, MORMON RAISED ITS TOP TICKET some Monday-morning quarter- Workshop because Parker and backing, maybe in hindsight that Stone “work best when the stakes PRICE TO $477. TODAY ONLY HAMILTON wasn’t the right choice.” are highest.” HAS A HIGHER AVERAGE TICKET PRICE When Lane and Broderick exit- The cancellation left NYTW in ed a year after previews began, the lurch and made fundraising grosses began to decline. Sales more of a challenge since investors prefer shows despite its success, the producers of Mormon revived once the stars were enticed back for a with track records. The trade-off for the risk of kept applying the gas on one indulgence: lavish 14-week engagement in 2004, for which they “opening cold” on Broadway, however, is cost advertising and promotion. were each paid $100,000 weekly. The show savings that improve the upside. Take Hamilton, Rudin spent $9.6 million in the year ending closed for good in 2007. which had a developmental run at the Public in February 2012, or $184,000 a week, on adver- Mormon’s advertising focuses on the show Theater from January to May of 2015 that was tising and publicity. Three years later, spending itself, using quotes from celebrities who have ecstatically received by critics and audiences. has remained nearly that high, at just under $9 seen it, including Jon Stewart and David Now the Public reaps the benefits. According to million annually, even though the show regu- Letterman; the ads seldom mention the cast. Hamilton investment papers, the nonprofit larly sells out. This promotion strategy proved itself in June receives just over 5% of net profits from The advertising keeps Mormon “front and 2012, when Mormon’s two leading actors, Josh Hamilton’s Broadway run at the Richard Rodgers center in everyone’s minds,” said Steven Gad and Andrew Rannells, left the show: It was Theatre, plus either 1.5% of the box office take Chaikelson, the head of Columbia University’s a box office nonevent. or a portion of weekly operating profits. theater management and producing concentra- Hence, while Hamilton may become an even tion. Scott Mallalieu, president of group-sales Dynamic pricing bigger hit than Mormon, Mormon investors Just hours after it won nine Tonys in 2011, arguably enjoy better terms. Now that Hamilton Mormon introduced its top ticket of $477. Its has repaid its production costs and is in the average ticket price peaked in 2013, at $197.66. black, it pays 16% of net profit “off the top” to Mormon, along with Wicked, The Lion King and its insiders—including the Public, lead produc- now Hamilton, among others, has benefited er Jeffrey Seller and composer Lin-Manuel from the industry’s willingness to adjust ticket Miranda. The remainder, known as adjusted net prices up and down to meet demand. “Premium profit, is divided among producers and tickets,” once limited to seats near the stage, investors. At Mormon, the insiders get just 4% of are now sold throughout the orchestra for red- net profit off the top, leaving a much bigger hot hits. Today only Hamilton has a higher aver- slice for investors. age ticket price. “Dynamic pricing on Broadway has changed Saving on stars, spending on ads everything,” said Routh. “There are really tal- Mormon is a lean operation. One of the reasons MINDS BEHIND ented people in ticket inventory who can max- THE MATTER: why is its mostly unknown cast. Stars, chosen for imize profits.” Matt Stone, their ability to draw audiences, can demand Robert Lopez Projecting forward the year-old results that onerous terms. Ricky Martin, who played Marxist and Trey Parker Crain’s obtained, Mormon on Broadway has by revolutionary Che Guevara in the 2012 revival of wrote The Book now likely paid out well over $180 million in of Mormon. Evita, earned a salary plus 10 percent of the week- profits and royalties. Like Hamilton, it should ly box office over $700,000, among other perks, run many more years on Broadway, although costing the show tens of thousands of dollars a it’s at a different stage of the demand curve. So week. By contrast, in its first full year, the six far in 2016, the average Mormon ticket has unknown actors who played principal roles in declined 10% from a year earlier, to $158. Mormon earned a total of $1.2 million. (Although, Demand for Hamilton is still building, and as Crain’s previously reported, actors who helped around Tony time producers may introduce a develop Mormon in workshops have collectively new top seat, which is currently $549 and still earned millions in royalties.) nearly impossible to get. In its first year, Mormon’s expenses averaged In the end, any long-running show will like- $634,052 weekly, including salaries and rent but ly make money. But a skilled producer can cap- not royalties. A year later, Evita opened at the The Big Picture italize on the all-important word-of-mouth to Marquis Theatre with operating expenses of make the show a great investment. “While $739,000 a week, according to its preliminary Mormon is an excellent show and it’s likely it budget, also obtained by Crain’s. Evita closed after $424 MILLION would have been embraced by audiences and 42 weeks and did not make its investors whole. had a profitable Broadway run,” said Mormon sales escalated through terrific in sales over five years, from the 1,066- Chaikelson, “without an excellent producer reviews, 14 Tony nominations in May 2011 and seat Eugene O’Neill Theatre leading the charge it would not have been any- Ⅲ GETTY IMAGES nine Tony Awards the following month. Yet, thing like the mega-hit it is today.”

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Profiles in Accounting Work-Life Balance: The New Weapon in the Talent War

hen Beth Wiener joined Marcum LLP, Putting Vacation Front and Center are taking their vacation, which 15 to 20 years ago an accounting firm headquartered in t many accounting firms, persuading might have been a problem,” Botwin said. New York City, she needed flexibility employees to take their vacation time Wto juggle her work while raising her two-year-old is a crucial part of the work-life balance Recognizing that some workers want to extend twins. The firm offered her a supervisory position Aequation. Forty-one percent of U.S. workers say their vacation—but can’t afford to go entirely in its Melville, Long Island, office, where she they don’t take any vacation time or use less than without pay, Marcum added a paid sabbatical worked three days a week. they are entitled to, because they fear missing program two years ago. It offers qualifying too much work, according to a recent survey by employees reduced pay during time off to enjoy That was in 1995, when flexible work Accountemps, a staffing service for temporary everything from overseas travel to extra time with arrangements were less common in corporate accounting and finance professionals. children during summer break. America than they are today. But Wiener’s arrangement did not slow her down. She The temptation to skip vacation can be particularly Compressed Schedules continued to adjust her schedule as her children strong in accounting, where deadlines are educing the work week for the entire team grew older to address both her family’s needs and year-round. To prevent burnout, Marcum’s HR during the summer is another strategy some the firm’s—and made partner by 2002. department pays close attention to the firm’s firms are using. New York City accounting scheduling practices. The goal is to keep employees Rfirm Friedman LLP has given its entire staff a full- Last year, her twins graduated from college. available to clients during peak times—the period day off every Friday from Memorial Day to Labor “Now that they are out in the real world, I can see leading up to the tax deadline in April, and, for Day for the past nine years, said Jeff Agranoff, chief their appreciation for what I have done the whole those who have filed extensions, October—while operating officer. time,” said Wiener, national partner-in-charge of helping them take advantage of slower times to Marcum LLP’s Alternative Investments Group. recharge. The HR department works in tandem Perks like this might seem to be costly to the with partners at Marcum to actively remind bottom line. On the contrary, said Agranoff. Times have changed since Wiener started her career employees to use vacation time—which ranges at Marcum. Work-life balance is now the No. 1 factor from 23 to 28 days per year, said Botwin. “It hasn’t hurt our financial situation,” he said. dictating job satisfaction among members of the “I think people work hard because they really American Institute of Certified Public Accountants. “We have people involved in scheduling who appreciate what we’re doing—and they’re getting To compete in the industry-wide talent war, many reach out and say, ‘When can we make time for just as much work done in those four days as they firms offer alternative work arrangements to their you to get your R&R?’” said Botwin. would in five days. Often, in the summer, we’re entire team. “Work-life demands are very personal even more productive.” As many accounting to different people,” said Andrew Botwin, chief Partners at Marcum set an example by scheduling firms have discovered, an energized staff can be a human resources officer at Marcum. time off for themselves, too, said Botwin. “They powerful asset.

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Profiles in Accounting A Fast-Growing Niche: Advising Wealthy Clients on How to Lessen the Sting of Taxes

any affluent New Yorkers are in a tax Wealth Preservation Strategies “We did a year-to-date taxable income review bracket that leaves them grumbling o make sure they are not paying more than in April,” Speiss said. “We look at it again in come April 15, but they’re not ready their fair share to the government, affluent June and in the fall. We make it a high-touch Mto abandon the city for a destination, such as New Yorkers often turn to high-level tax service offering.” Florida, that does not have a state income tax. Tplanning. “They desire to minimize the amount of tax they are paying without having to relocate One Size Does Not Fit All “You would think they might contemplate or sacrifice what they feel is a high quality of or other clients, the focus on tax planning may moving to a lower-tax jurisdiction, but they living here in New York City,” said Speiss. vary considerably. “Our clients have different do not,” said Tim Speiss, partner-in-charge professions, different types of businesses, of New York City accounting firm Eisner One key service that many upper-income Fdifferent investment portfolios,” said Speiss. Amper’s personal wealth advisors group and clients seek from his firm is alternative vice president of EisnerAmper Wealth Planning minimum tax (AMT) planning. The AMT— For corporate executives, for instance, the LLC. Many of his group’s clients—ranging from designed to keep wealthy taxpayers from focus may be on compensation and benefits tax athletes to hedge fund managers—earn more taking advantage of loopholes in tax laws— consulting. And for investors, the focus may be than $1 million per year from pursuits that make disallows some common deductions, such as on selecting the tax-efficient vehicles. it convenient to live in the city. personal exemptions for couples with children. EisnerAmper focuses on multi-year planning to Income taxes aren’t the only area of concern Nonetheless, many face a steep tax bill that help them minimize their AMT, said Speiss. for wealthy clients. “They are concerned with they’d like to reduce. An analysis by the Pew preserving assets for the next generation,” Research Foundation of IRS data in 2016 found “Our clients are very sophisticated and have Speiss said. That concern keeps the firm’s trusts that people with adjusted gross income above complicated financial scenarios that really need and estates group busy. $250,000 paid 51.6% of all individual income year-round, regular attention,” he said. taxes, though they accounted for only 2.7% of With tax policies changing frequently, Speiss’ all returns filed—and their average tax rate was To give such clients an edge, EisnerAmper meets group also spends a good amount of time 25.7%. And even many Americans who are not frequently with them to keep abreast of any monitoring legislation and tax-court case law. affluent feel pinched by today’s tax rates. In changes in their financial situation. For business One current topic is carried interest, a much- a Gallup poll in April, 57% of Americans said owners, for example, advisers may focus on debated practice in which income that flows to they pay too much in federal income taxes—the strategies such as deferring income into the next the general partner of a private investment fund highest percentage since 2001. year and accelerating expenses. gets treated as a capital gain. “That’s an area where we get a lot of questions,” said Speiss.

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Profiles in Accounting Knowledge is Power: An Accounting Firm Invests Heavily in Continuing Education

orking with clients in areas from subject areas every three years. clients need advice on how to deal with the manufacturing to pharmaceuticals, CPA resulting fi nancial pressures. Kenneth Castillo, senior audit manager “We’ve always wanted to be at the top of the Wat Grassi & Co., needs to keep up with the fast- curve,” said Ronald Eagar, a CPA and chief Another factor making continuing education more changing tax policies that affect them. “You’ve got operating offi cer at Grassi & Co. “We want to make important is the increasingly aggressive stance to be ready to speak about any topic they’ve read sure our staff is at the upper level.” being taken by tax authorities at the federal, state or heard about,” said Castillo. and local levels, noted Eagar. “Th ere is a lot of Th e state doesn’t mandate that non-licensed pressure on them to bring in money,” said Eagar. He stays current through the fi rm’s extensive team members take continuing education, but continuing education program. “It’s really been Grassi requires that they, too, meet the 40-hour For instance, the IRS was once willing to negotiate invaluable when I’m out speaking to people,” requirement. “We think it makes them a better with businesses that fell behind on payroll tax said Castillo. professional at the end of the day,” Eagar said. deposits, but that is no longer true, Grassi has found. “Th ey’ve instituted a no-exceptions Navigating Today’s Complexities Although corporate continuing education budgets policy,” he said. “Th ey want it resolved and t a time when accounting is changing suffered in the recession, many fi rms across a vari- resolved now.” rapidly because of factors ranging from ety of fi elds have increased their investment as the new technology to globalization, Grassi economy has improved. Th e International Foun- Given such situations, the fi rm’s tax controversy Ais one of a number of New York City area fi rms dation of Employee Benefi t Plans found in a 2015 unit has played an ever-greater role in advising the investing heavily in continuing education to keep survey that 64% of fi rms offer in-house corporate fi rm’s accountants on best practices. a competitive edge. Grassi mandates 40 hours of training programs, 45% fund continuing education continuing education per year, conducting some for their teams, 45% cover educational conferences Beyond helping accountants serve their clients of its training in-house and providing other classes and 40% pay for licensing courses/exams. better, continuing education helps on another through outside providers. front, said Eagar. It allows Grassi to compete more Preparing for the Future effectively for talent. Forty hours per year is far more than the state n accounting, continuing education is requires. In New York State, new CPAs must, particularly important, said Eagar, because “When you’re recruiting and interviewing people, after completing an initial three-year registration many clients are facing increasingly one of the questions they do ask is: How much period, complete four hours of ethics training and Ichallenging, industry-specifi c issues. In continuing education you give as a fi rm?” said either 24 hours of training in a specialized subject construction, for instance, insurance costs have Eagar. “If you have a good continuing education area or 40 hours of training in a combination of increased signifi cantly in recent years, and many program, that will help you attract people.” It’s all about YOU!

www.grassicpas.com 488 Madison Avenue, New York, NY 10022 (212) 661-6166 50 Jericho Quadrangle, Jericho, NY 11753 (516) 256-3500 10 Esquire Rd., Suite 4, New City, NY 10956 (845) 634-5300

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NY Sec. of State designated fice location: NY County. Princ. office of agent of LLC upon whom process against LLC: 4 Irving Pl., NY, NY 10003. SSNY Surveyor Capital, Industrials Analyst it may be served and shall mail process designated as agent of LLC upon whom Citadel LLC – New York, NY to: c/o CT Corporation System, 111 8th process against it may be served SSNY Cndct fundamental analysis of cos, Notice of Formation of EATALY ROCK Ave., NY, NY 10011, regd. agent upon shall mail process to Corporation Service bus mdls & industries. F/T. Reqs a CENTER LLC amended to EATALY USA whom process may be served. DE addr. Co., 80 State St., Albany, NY 12207-2543. Mast’s dgr (or frgn equiv) in Finan, LLC. Arts. of Org. filed with Secy. of of LLC: 1209 Orange St., Wilmington, DE Purpose: Gas pipeline and storage. Econ, BA, Eng or rel fld & 2 yrs of exp State of NY (SSNY) on 6/27/08. Office 19801. Cert. of Form. filed with DE Sec. in job offered or prfrm’g analytical wrk location: NY County. SSNY designated in Industrials industry. In lieu of Mast’s of State, 401 Federal St., Dover, DE as agent of LLC upon whom process dgr & 2 yrs of exp as stated, will accpt 19901. Purpose: all lawful purposes. a Bach’s dgr & 5 yrs of exp as stated. against it may be served. SSNY shall Notice of Qualification of APOLLO 2 yrs of stated exp must be in bank’g, mail process to: The LLC, c/o Julie Lee, PRINCIPAL HOLDINGS XI, LLC Appl. for priv equity, pub equity or equity rsrch. 45 E. 20th St., 9th Fl., NY, NY 10003. Auth. filed with Secy. of State of NY Must also have exp in follow’g: bld’g Purpose: any lawful activity. NOTICE OF FORMATION OF Pinnacle (SSNY) on 05/18/16. Office location: integrated 3-stmt mdls incorporat’g Standard, LLC. Articles of Organization NY County. LLC formed in Anguilla multivariate flexibility utiliz’g Excel & filed with the Secretary of State of NY on 04/13/15. Princ. office of LLC: Visual Basic; assess’g & analyz’g chngs (SSNY) on 03/14/2016. Office location: to accnt’g methods & result’g impact Notice of Formation of Bratland Indus- 9 W. 57th St., NY, NY 10019. SSNY NEW YORK County. SSNY has been designated as agent of LLC upon whom of those chngs on Profit & Loss, Cash tries LLC. Arts of Org filed with secy. of designated as agent upon whom process Flow & Balance Sheet finan stmts; finan state of NY (SSNY) on 3/3/16. Office process against it may be served. SSNY mdl’g & forecast’g incl’g risk/rewrd & against it may be served. The Post Office shall mail process to c/o Apollo Global location: NY county SSNY designated address to which the SSNY shall mail EPS analysis; synthesiz’g cmplx finan agent upon whom process may be Management, LLC at the princ. office info for presentation; & analyz’g public a copy of any process against the LLC of the LLC. Delaware addr. of LLC: Cor- mrkts incl’g actively follow’g mrkt activity. served and shall mail copy of process served upon him/her is: 3105 Decatur against LLC to principle business poration Service Co., 2711 Centerville Resumes: ER/LW, Attn: R-0256, Citadel Ave, Apt 52A, Bronx, NY 10467. The Rd., Ste. 400, Wilmington, DE 19808. LLC, 131 S. Dearborn St, 32nd Fl, address: 248 E 2nd Street Apt #11 NY, principal business address of the LLC Chicago, IL 60603 NY 10009. Purpose: any lawful act. Cert. of Form. filed with Secy. of State is: PO Box 68, New York, NY 10009. of DE, John G. Townsend Bldg., 401 Purpose: any lawful act or activity. Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity. Notice of Formation of Bravest Warriors PUBLIC & LEGAL LLC. Arts. of Org. filed with NY Dept. of Notice of Qual. of Athelstan Advisors State on 4/1/16. Office location: NY LLC, Auth. filed Sec’y of State (SSNY) County. Sec. of State designated agent NOTICES 6/17/15. Off. loc: NY Co. LLC org. in Notice of Qualification of Transamerica of LLC upon whom process against it DE 6/2/15. SSNY desig. as agent of Retirement Insurance Agency, LLC. may be served and shall mail process LLC upon whom proc. against it may be Authority filed with NY Dept. of State on to the principal business address: Notice of Qualification of Convene served. SSNY shall mail copy of proc. 1/7/2016. NYS fictitious name: TRIA c/o Spielman Koenigsberg & Parker, 780 Third Avenue, LLC. Authority filed to Att: Devin Geoghegan, 15 W. 20th Insurance Agency LLC. Office location: LLP, 1745 Broadway, 18th Fl., NY, NY with NY Dept. of State on 4/19/16. St., NY, NY 10011. DE off. addr.: CSC, NY County. Princ. bus. addr.: 408 St. 10019, Attn: Richard Koenigsberg, Office location: NY County. Princ. bus. 2711 Centerville Rd., Wilmington, DE Peter St., Ste. 230, St. Paul, MN 55102. CPA. Purpose: any lawful activity. addr.: 366 Madison Ave., 7th Fl., 19808. Cert. of Form. on file: SSDE, LLC formed in DE on 4/3/2013. NY NY, NY 10017. LLC formed in DE on Townsend Bldg., Dover, DE 19901. Sec. of State designated agent of LLC 3/17/16. NY Sec. of State designat- Purp: any lawful activities. upon whom process against it may be ed agent of LLC upon whom process Notice of Formation of FLOWER SHOP served and shall mail process to: c/o against it may be served and shall CORTLANDVILLE, LLC Arts. of Org. filed CT Corporation System, 111 8th Ave., mail process to: Corporation Service with Secy. of State of NY (SSNY) on NY, NY 10011, regd. agent upon whom Notice of Formation of Blue Note USA, Co., 80 State St., Albany, NY 12207, 05/10/16. Office location: NY County. process may be served. DE addr. of LLC. Arts. of Org. filed with NY Dept. of regd. agent upon whom process may Princ. office of LLC: Windsor Properties, LLC: 1209 Orange St., Wilmington, DE State on 4/4/16. Office location: NY be served. DE addr. of LLC: 2711 Attn: Paul D. Glantz, 99 Park Ave., NY, 19801. Cert. of Form. filed with DE Sec. County. Sec. of State designated agent Centerville Rd., Ste. 400, Wilmington, DE NY 10016. SSNY designated as agent of State, 401 Federal St., Dover, DE of LLC upon whom process against it 19808. Cert. of Form. filed with DE Sec. of LLC upon whom process against it 19901. Purpose: all lawful purposes. of State, 401 Federal St., Dover, DE may be served. SSNY shall mail process may be served and shall mail process to: 19901. Purpose: all lawful purposes. to the LLC at the addr. of its princ. Steven Bensusan, 131 W. 3rd St., NY, office. Purpose: Any lawful activity. NY 10013, principal business address. Purpose: all lawful purposes. Notice of Qualification of 10MSW 21A, Notice of Qualification of 62-60 99th Notice of Qualification of Aptevo BioThera- LLC Appl. for Auth. filed with Secy. of Street Owner II LLC. Authority filed with peutics LLC. Authority filed with NY Dept. Notice of Qualification of Nelson Tree- State of NY (SSNY) on 05/03/16. NY Dept. of State on 5/13/16. Office of State on 4/12/16. Office location: NY house and Supply, LLC. Authority filed Office location: NY County. LLC formed location: NY County. Princ. bus. addr.: County. Princ. bus. addr.: 920 Cassatt with NY Dept. of State on 4/7/16. Office in Delaware (DE) on 04/06/16. Princ. 825 3rd Ave., Fl 37, NY, NY 10022. Rd., Ste. 100, Berwyn, PA 19312. LLC location: NY County. LLC formed in WA office of LLC: 10 Madison Sq. West, Unit LLC formed in DE on 5/10/16. NY Sec. formed in DE on 1/15/16. NY Sec. of on 9/12/11. NY Sec. of State designated 21A, NY, NY 10010. SSNY designated of State designated agent of LLC upon State designated agent of LLC upon agent of LLC upon whom process against as agent of LLC upon whom process whom process against it may be served whom process against it may be served it may be served and shall mail process against it may be served. SSNY shall and shall mail process to: c/o CT Corporation and shall mail process to: c/o CT Cor- to: c/o CT Corporation System, 111 8th mail process to c/o Corporation Service System, 111 8th Ave., NY, NY 10011, poration System, 111 8th Ave., NY, NY Ave., NY, NY 10011, regd. agent upon Co., 80 State St., Albany, NY 12207- regd. agent upon whom process may 10011, regd. agent upon whom process whom process may be served. WA and 2543. DE addr. of LLC: 2711 Centerville be served. DE addr. of LLC: Corporation may be served. DE addr. of LLC: 1209 principal business address: 32925 Rd., Ste. 400, Wilmington, DE 19808. Trust Co., 1209 Orange St., Wilmington, Orange St., Wilmington, DE 19801. Cert. SE Issaquah Fall City Rd., Fall City, WA Cert. of Form. filed with Secy. of State, DE 19801. Cert. of Form. filed with DE of Form. filed with DE Sec. of State, 401 98024. Cert. of Form. filed with WA Sec. DE Div. of Corps., John G. Townsend Sec. of State, 401 Federal St., Dover, Federal St., Dover, DE 19901. Purpose: of State, 801 Capitol Way S., Olympia, Bldg., 401 Federal St. - Ste. 4, Dover, DE 19901. Purpose: all lawful purposes. all lawful purposes. WA 98501. Purpose: all lawful purposes. DE 19901. Purpose: Any lawful activity.

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PUBLIC & LEGAL NOTICES

Notice of Formation of DBA NY Office, Notice of Qual. of Baccarat 42A Owner Notice of Formation of 551 West 21st Notice of formation of MED KITCHN, LLC. Arts. of Org. filed with NY Dept. of LLC, Auth. filed Sec’y of State (SSNY) St Holdings, LLC. Arts. of Org. filed with LLC. Arts of Org filed with Secy. of State of State on 4/14/16. Office location: NY 1/25/16. Off. loc: NY Co. LLC org. in DE NY Dept. of State on 4/22/16. Office NY (SSNY) on 5/6/2016. Office location: County. Princ. bus. addr.: 27 W. 24th 1/11/16. SSNY desig. as agent of LLC location: NY County. Sec. of State desig- NY County. SSNY designated agent upon St., Ste. 10B, NY, NY 10010. Sec. of upon whom proc. against it may be nated agent of LLC upon whom process whom process may be served against State designated agent of LLC upon served. SSNY shall mail copy of proc. to against it may be served and shall mail LLC to: 7014 13th Ave #202 Brooklyn, whom process against it may be served NRAI, 111 Eighth Ave., NY, NY 10011, process to: Duval & Stachenfeld LLP, NY 11228. Principal business address: and shall mail process to: National the Reg. Agt. upon whom proc. may be c/o Alan Cohen, 555 Madison Ave., 6th 41 W 82nd St. #1C NY, NY 10024. Corporate Research, Ltd., 10 E. 40th served. DE office addr.: 160 Greentree Dr., Fl., NY, NY 10022, principal business St., 10th Fl., NY, NY 10016, regd. agent Ste. 101, Dover, DE 19904. Cert. of Form. address. Purpose: all lawful purposes. upon whom process may be served. on file: SSDE, Townsend Bldg., Dover, Purpose: any lawful activity. DE 19901. Purp: any lawful activities. Notice of Qualification of AGNL Extrusion, L.L.C. Authority filed with NY Dept. of NOTICE OF FORMATION OF Alpha Vari- State on 4/12/16. Office location: NY Notice of Formation of KEYSTONE ance Solutions. Articles of Organization County. LLC formed in DE on 4/8/16. NY 21-78 19TH STREET LLC. Art. of Org. REALTY NEW YORK CITY LLC Arts. of Org. filed with the Secretary of State of NY Sec. of State designated agent of LLC filed with the SSNY on 04/12/16. filed with Secy. of State of NY (SSNY) (SSNY) on 2/08/16. Office location: NEW upon whom process against it may be Office: New York County. SSNY desig- on 06/18/02. Office location: NY County. YORK County. SSNY has been designated served and shall mail process to: 245 nated as agent of the LLC upon whom Princ. office of LLC: 15 Park Row, Ste. as agent upon whom process against it Park Ave., 24th Fl., NY, NY 10167, princi- process against it may be served. SSNY 23N, NY, NY 10038. SSNY designated may be served. The Post Office address pal business address. DE address of LLC: shall mail copy of process to the LLC, as agent of LLC upon whom process to which the SSNY shall mail a copy of 850 New Burton Rd., Ste. 201, Dover, c/o Triena Capital Partners LLC, 447 against it may be served. SSNY shall mail any process against the LLC served DE 19904. Cert. of Form. filed with DE West 18th Street, 4A, New York, NY process to the LLC at the addr. of its princ. upon him/her is: CORPORATION SER- Sec. of State, 401 Federal St., Dover, DE 10011. Purpose: Any lawful purpose. office. Purpose: Any lawful activity. VICE COMPANY 80 STATE ST. ALBANY, 19901. Purpose: any lawful activity. NY 12207. The principal business address of the LLC is: 5 East 44th St NOTICE OF FORMATION OF Suite 4A New York New York 10017. Notification of Qualification of Grossman PROGRESSIVECAREER LLC. Articles of Purpose: any lawful act or activity. Notice of Formation of 785 FIFTH AVE Cedar Lane/36th Street, LLC. Authority Organization filed with the Secretary of REALESTATE LLC Arts. of Org. filed with filed with Secy. of State of NY (SSNY) on State of NY (SSNY) on 04/19/2016. Secy. of State of NY (SSNY) on 05/03/16. 3/17/2016. Office location: NY County. Office location: NEW YORK County. Office location: NY County. Princ. office LLC formed in NV on 1/9/2012. SSNY Notice of Formation of EATALY NY FIDI, SSNY has been designated as agent of LLC: 151 W. 46th St., 10th Fl., NY, designated agent upon whom process LLC. Arts. of Org. filed with Secy. of State upon whom process against it may NY 10036. SSNY designated as agent may be served and shall mail copy of of NY (SSNY) on 7/11/14. Office loca- be served. The Post Office address to of LLC upon whom process against it process against LLC to: Janie Manage- tion: NY County. SSNY designated as agent which the SSNY shall mail a copy of any may be served. SSNY shall mail process ment Corp., 335 Oak Avenue, River of LLC upon whom process against it process against the LLC served upon to the LLC at the addr.of its princ. office. Edge, NJ 07661. Principal business may be served. SSNY shall mail process him/her is: 220 RIVERSIDE BOULEVARD Purpose: Any lawful activity. address: 1655 Blue Spruce Road, Reno, to: c/o Julie Lee, 45 E. 20th St., 9thFl., NY, APARTMENT 28F NEW YORK, NY 10069 NV 89511. Certificate of LLC filed with NY 10003. Purpose: any lawful activity. The principal business address of the LLC Secy. of State of NV located at: 101 is: 220 RIVERSIDE BOULEVARD APART- North Carson Street, Suite 3, Carson Notice of Formation of FLOWER SHOP MENT 28F NEW YORK, NY 10069 City, NY 89701. Purpose: any lawful act. BRIGHTON, LLC Arts. of Org. filed with Purpose: any lawful act or activity. Notice of Formation of Grand Wac LLC. Arts. Secy. of State of NY (SSNY) on 05/10/16. of Org. filed with Secy. of State of NY (SSNY) Office location: NY County. Princ. office on 4/27/16. Office location: NY County. of LLC: Windsor Properties, Attn: Paul Notice of Formation of Apex Global, LLC, Notice of formation of Life By Dru LLC. SSNY designated as agent of LLC upon D. Glantz, 99 Park Ave., NY, NY 10016. Art. of Org. filed with Sec’y of State (SSNY) Arts of org filled with secy. of State whom process against it may be served. SSNY designated as agent of LLC upon on 2/2/16. Office location: NY County. of NY (SSNY) on 2/2/2016. Office SSNY shall mail process to: c/o The LLC, whom process against it may be served. SSNY designated as agent of LLC upon Location: NY County. SSNY designated 192 Lexington Avenue, Ste. 1100, NY, SSNY shall mail process to the LLC at whom process against it may be served. agent upon whom process may be NY 10016. Purpose: any lawful activity. the addr. of its princ. office. Purpose: SSNY shall mail copy of process to Cecilia served against LLC to principal busi- Any lawful activity. Soh, 315 W. 36th St., Ste. 17B, NY, NY ness address: 460 W. 149th St. APT 62 10018. Purpose: any lawful activities. NY, NY 10031. Purpose: any lawful act. Notice of Formation of EASTSIDE ADVANCED MEDICAL LLC Arts. of Org. Notice of Formation of HUDSON Notice of Formation of GEORGE H. filed with Secy. of State of NY (SSNY) BERGEN LLC Arts. of Org. filed with Notice of Formation of JS Psychological, PRICE LLC Arts. of Org. filed with Secy. on 05/20/16. Office location: NY Secy. of State of NY (SSNY) on 05/24/16. PLLC. Arts. of Org. filed with Secy. of of State of NY (SSNY) on 05/02/16. County. Princ. office of LLC: 408 Jay St., Office location: NY County. Princ. office State of NY (SSNY) on 5/19/16. Office Office location: NY County. SSNY Brooklyn, NY 11201. SSNY designated of LLC: 826 Broadway, 11th Fl., NY, NY location: NY County. SSNY designated designated as agent of LLC upon whom as agent of LLC upon whom process 10003. SSNY designated as agent of as agent of LLC upon whom process process against it may be served. SSNY against it may be served. SSNY shall LLC upon whom process against it may against it may be served. SSNY shall mail shall mail process to c/o Stacy Cochran, mail process to the LLC, c/o Michael be served. SSNY shall mail process to process to: 185 Madison Ave., #15-07, NY, 90 W. Broadway, 7th Fl., NY, NY 10007. Amoashiy, M.D. at the princ. office of the LLC, 826 Broadway, NY, NY 10003. NY 10016. Purpose: any lawful activity. Purpose: Any lawful activity. the LLC. Purpose: Any lawful activity. Purpose: Any lawful activity.

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P022-23_CN_2016 0606.indd 23 6/3/2016 6:03:56 PM 20160606-NEWS--0024-NAT-CCI-CN_-- 6/3/2016 7:36 PM Page 1

GOTHAM GIGS

COME ONE, COME ALL: John Kennedy Kane has been the ringmaster of the Big Apple Circus since 2012.

Lord of the ring JOHN KENNEDY KANE

In an endangered industry,John Kennedy Kane survives—for now—as ringmaster of the Big Apple Circus AGE 56 BORN Buffalo, New York ince 2012, John Kennedy Kane’s life has been a no longer see the trapeze act nor drive from town to town EDUCATION B.A., mass one-ring circus. to perform. (He has since undergone treatments that have communications/journalism, 1988, In a top hat, knee boots and a red satin tailcoat spared him from further vision loss.) St. Bonaventure University with black stripes, Kane is the ringmaster of the A ringmaster without a circus, he wrote and per- WAGES OF FAME Kane declined to S39-year-old Big Apple Circus, which wraps up its sea- formed a one-act play, My Life in the Basement, and figured reveal his salary, but according to sonal run on June 12 in Queens’ Cunningham Park. his career was over. That’s when the Big Apple called; a indeed.com, ringmasters average “I’m in a lucky situation in an industry that’s implod- scout had seen Kane in the ring years earlier. That he’d about $77,000 a year. ing,” said Kane, who answers to his longtime also performed his own play to small audi- REDEFINED ROLE With the nickname, Circ. ences made him a good fit for the circus’s Big Apple Circus presenting a What if I scripted spectacle, Kane doesn’t The number of U.S. circuses dropped from “ 1,700-seat tent, where the farthest seat is 50 were an introduce the daring acts. In the more than 200 about 35 years ago to an esti- feet from the ringmaster. current show, “The Grand Tour,” mated 12 major shows today, not including elephant Now he works in a show with horses, he plays a variety of characters, Cirque du Soleil—which is more of a trainer? rescue dogs, hand-balancers from China, including a ship’s captain, a train Broadway production than a traveling ” acrobats from Kenya and aerialists conductor and a pilot. He occasionally hoofs it up with the other circus. Kane has worked for 15 different from Russia. Animal rights protests sent the performers. “From the audience’s circuses, sometimes in a different tent each week. elephants packing years ago. point of view, they think I own the He began in Scranton, Pennsylvania, right out of high The circus, which travels as far as Boston and Atlanta, show,” he said. school, working jobs from concessionaire to illusionist. faces a $2 million deficit this year, as corporate events dry PERSONAL LIFE Kane spends A friend’s father who knew circus owners helped him up: Those used to bring in $50,000 to $100,000 for a sin- about 40 weeks a year on the land a gig—as a fire-eater. “I was in the wrong tent,” gle show. If it can’t close the gap in its $11 million budget, road and has never been married. said Kane, who switched to clowning. In college, he the Big Apple Circus will have to cut its performance The ringmaster grew up in a “normal family” with five siblings, worked circuses in the summer. After 15 years as a schedule, says Executive Director Will Maitland Weiss. he said, adding, “I went from clown, Kane entered the spotlight as ringmaster. Kane hopes he’ll have a ring to master if the circus being the weird brother to the Seven years ago, his ringmaster gigs came to a grind- opens its regular fall run at Lincoln Center. “What if I interesting uncle.”

BUCK ENNIS ing halt. Gradually going blind from diabetes, Kane could were an elephant trainer,” he mused. — CARA S. TRAGER

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SNAPS

Investing in the environment At the Nature Conservancy gala on May 25, JPMorgan Chase announced it would give $6 million to help fund the nonprofit’s NatureVest program, which raises capital to support conservation projects that yield returns for investors. The grant is the largest JPMorgan has ever given to an environmental organization. The conservancy started NatureVest in 2014 with financial support and guidance from JPMorgan.

Joseph Gleberman, managing director of the Pritzker Organization; Dr.P.Roy Vagelos, chairman of Regeneron Douglas B. Petno, CEO of Commercial Banking at JPMorgan Chase & Pharmaceuticals; Natalie Morales, news Co.; and Mark Tercek, president and CEO of the Nature Conservancy, anchor and co-host of the Today show on at the May 25 fundraiser for the environmental nonprofit. NBC; and Dr. Vagelos’ wife, Diana, at the Nature Conservancy gala at Cipriani 42nd Street, which raised about $2.2 million. Helping schools to be safe and affirming Gala raises $700K for children Actress Ali Wentworth and her husband, Good Daun Hauspurg, Morning America co-host president and co- George Stephanopou- founder of Eastern los, were honored at a Consolidated, with May 23 benefit at her husband, Peter Cipriani 42nd Street for Hauspurg, chairman GLSEN, a national edu- and CEO of Eastern cation organization Consolidated, and focused on ensuring that Barbara Salmanson, schools provide a safe, board president of affirming environment Jewish Child Care for students, regardless Association, at the of their sexual orienta- JCCA gala on May 18, tion or gender identity. which raised more than $700,000.

Actor Jussie Smollett with Ilene Chaiken, executive producer of the television series Empire, at the GLSEN benefit, which raised Cynthia Germanotta, president of the Born This Way Foundation; Tony award- more than $1 million. winning actress Joanna Gleason; Ronald E. Richter, chief executive of JCCA; and actor Chris Sarandon at the JCCA fundraiser at Jazz at Lincoln Center.

JONATHAN GRASSI, BEDDER/GETTYJONATHAN BRYAN IMAGES, PATINO, NYC EDUARDO SEE MORE OF THIS WEEK’S SNAPS ONLINE AT CRAINSNEWYORK.COM/SNAPS GET YOUR GALA IN SNAPS. EMAIL THERESA AGOVINO, [email protected]

JUNE 6, 2016 | CRAIN’S NEW YORK BUSINESS | 25 20160606-NEWS--0026-NAT-CCI-CN_-- 6/3/2016 5:08 PM Page 1

FOR THE RECORD*

inspired café opened in restaurant Tenzan opened half of the 24th floor of the documentaries, will activity center. The ten- NEW IN TOWN Prospect Heights. a ramen and gyoza bar on 33-story building between occupy the entire seventh ant was represented by the Upper West Side. Exchange Alley and Rector floor of the 12-story RKF. The landlord was A Gusto Natsumi Tapas Street. The tenant was building between Sixth represented by Isa Realty 1450 Fulton St., Brooklyn 323 Third Ave. represented by Savills and Seventh avenues. The Group. The asking rent The dessert shop opened The Italian-Japanese MERGERS & Studley. The landlord, tenant was represented was $80 per square foot. for breakfast and lunch in fusion restaurant opened ACQUISITIONS RXR Realty, was repre- by CBRE. The landlord, Bedford-Stuyvesant. in Gramercy, with dishes sented in-house. The ask- Delta Enterprises, was The owners of Red such as teriyaki meatballs Astoria Financial ing rent ranged from the represented by Adams & Rooster Harlem and L+M Barano and crispy calamari in a Corporation will merge $50s to the low $60s per Co. The asking rent was Development Partners 26 Broadway, Brooklyn spicy peanut sauce. with New York Community square foot. $54 per square foot. have purchased 310 Lenox This South Williamsburg Bank. Astoria Bank will Ave. from the National restaurant, outfitted with a Planet Blue become part of New York The Documentary RETAIL Basketball Players wood-burning oven and an 191 Lafayette St. Community, expanding Group signed a 10-year New York Kids Club Association for $21 million. open-fire grill, makes its The Malibu, Calif.-based the combined company’s lease for 9,300 square feet signed a 15-year lease for The sale gives L+M a 50% own pasta and mozzarella. clothing brand opened its presence to 241 branches at 114 W. 26th St. The 3,800 square feet at 401 stake in the building. Red Its Southern Italian menu first New York store, in in the metropolitan area indepen-dent production E. 55th St. The residen- Rooster has operated in includes items like bucatini SoHo, selling activewear, and more than 350 company, formed from tial cooperative space on 4,000 square feet of the with rabbit ragù and bone- intimates and swimwear. branches overall. Assets the core team that pro- the ground floor will be building since the restau- marrow oreganata. will total $64.1 billion. duced Peter Jennings’ used as a children’s rant opened in 2011. Republic 50 Credo 10-09 50th Ave., Queens Banker Steel has 9 Prince St. The locally owned tavern acquired New York City DEALS ROUNDUP The San Francisco-based with hand-built bar and Constructors (NYCC), a cosmetics company will booths opened in Long steel-fabrication compa- TARGET/SELLERS TRANSACTION BUYERS/INVESTORS TRANSACTION TYPE open its first New York Island City. ny. NYCC’s New Jersey SIZE [IN MILLIONS] store, in Nolita, selling a fabrication facility will be Anacor Pharmaceuticals, Inc. $4,566.0 Pfizer Inc. (Manhattan) SB M&A large selection of women’s renamed Banker Steel NJ, /Aberdare Ventures; Baker beauty accessories, make- COMPANY MOVES LLC. Both companies will Brothers Investments (Manhattan); Fidelity Investments; Hercules Capital, up and skin-care treat- continue to work on the Inc.; Horizon Technology Finance ments, as well as men’s Bluestone Lane fabrication and erection of Management, LLC; Kingdon Capital bath and body products. 51 Astor Place 3 World Trade Center. Management, LLC (Manhattan); Palo Alto Investors, LLC; Rho Capital Partners, The artisanal Australian NYCC currently has more Inc. (Manhattan); Venrock (Manhattan) Freek’s Mill coffeehouse opened its than 300 employees in the 285 Nevins St., Brooklyn eighth Manhattan loca- New York metro area. inContact, Inc./Archon Capital $967.5 NICE Systems Ltd. SB M&A The new restaurant, named tion, in the East Village. Management LLC; BlackRock Fund Advisors; Diker Management, LLC after an 18th-century mill (Manhattan); Fidelity Management that was nearby, opened in Cool Mess BANKRUPTCIES & Research Company; Fidelity Gowanus. It has a wood- 137 E. 62nd St. SelectCo, LLC; Kaizen Capital, LLC; Kinderhook Partners LLC; Portolan fired oven for roasting The owners of Burger 689 St. Marks Capital Management, LLC meats, seafood and vegeta- Heaven opened this DIY ice Avenue, Inc. bles and serves small, sea- cream parlor on the Upper 689 St. Marks Ave., High Ridge Brands Co. / $415.0 Clayton, Dubilier FB M&A sonal farm-to-table plates. East Side. Customizable Brooklyn Brynwood Partners & Rice, Inc. (Manhattan) desserts and baked goods Filed for Chapter 11 bank- Market Common in Clarendon Avalonbay Communities Inc.; Hail Mary from Fat Witch Brownie ruptcy on May 4. The filing $406.0 SB M&A /TIAA Global Asset Regency Centers Corporation 68 Greenpoint Ave., and Sweet Sam’s are avail- cites estimated liabilities Management (Manhattan) Brooklyn able for takeout or eat-in. and assets of $1,000,001 to A husband-and-wife duo $10 million. The foreclosed Herndon Aerospace & Defense $210.0 KLX Inc. SB M&A opened this 1920s-retro Desi Galli mixed-use property was Company/Graycliff Partners (Manhattan); HCI Equity Partners diner in Greenpoint serv- 172 Ave. B at 11th St. put up for sale at the Kings ing modern and classic The Indian street-food County Courthouse on May Kateeva, Inc. $88.0 BOE Technology Group Company GCI gourmet fare like Bolivian- restaurant opened a sec- 12, 2016. Limited; Cybernaut; DBL Partners; style hot dogs, saffron- ond Manhattan location, GP Capital Co., Ltd; Intertrust Corporate Services (Cayman) Limited; and-honey Twinkies, egg in the East Village. Fairway Group Madrone Capital Partners; New Science creams and shakes. Holdings Corp. Ventures, LLC (Manhattan); Samsung El Luchador 2284 12th Ave. Venture Investment Corporation; Spark Capital Partners, LLC; TCL Kirsch Bakery and Café 132 Ludlow St. Filed for Chapter 11 bank- Corporation; Veeco Instruments Inc. 551 Amsterdam Ave. The wrestling-themed ruptcy on May 2. The filing The German and French taqueria serves burritos, cites estimated liabilities Bark & Co $60.0 August Capital; Resolute Ventures, GCI pastry café opened on the quesadillas, and tacos in and assets of $100,000,001 Inc.; RRE Ventures LLC (Manhattan) Upper West Side. It is meat and vegetarian options to $500 million. The credi- open 24 hours a day, seven at its second outpost, on the tors with the largest unse- days a week. Lower East Side. cured claims are United Two-Story Building at $20.8 Harlington Realty Co. LLC SB M&A Natural Foods, Inc., owed 116 Pike Street/Urban Visions (Manhattan); KLM Equities Inc. (Manhattan) L’Appart La Colombe $1,438,566.75; Douglaston 225 Liberty St. 601 W. 27th St. Shopping Center Owner, Selected deals announced for the week ended May 19 involving companies in metro New York. SB M&A: An eight-table, 28-seat The craft coffee roasters owed $719,874.67; and Strategic buyer M&A represents a minority or majority acquisition of existing shares of a company without the participation of a financial buyer. FB M&A: Financial buyer M&A represents a minority or majority acquisition of “chef’s apartment” opened opened a sixth location, in Kehe Distributors Holdings, existing shares of a company with the participation of a financial buyer. GCI: Growth capital investment represents new money invested in a company for a minority stake. within the French market Chelsea, and serves pas- owed $527,485.81. SOURCE: CAPITALIQ and food hall Le District in tries from City Bakery. Battery Park City’s Brookfield Place. Guests Sweetgreen REAL ESTATE DEALS GET YOUR NEWS ON THE RECORD choose multicourse tasting 226 Bleecker St. *To submit company openings, moves or real estate deals, or to receive further information, menus ranging from $105 The salad-makers opened COMMERCIAL email [email protected]. to $145 per person. their eighth location, in Legends signed a 10-year For the Record is a weekly listing to help businesspeople in New York find opportunities, the West Village. lease for 12,400 square feet potential new clients and updates on customers. Bankruptcy filings from the Eastern and Longevity at 61 Broadway. The New Southern districts of New York are listed alphabetically, as are recently announced New 810 Washington Ave., Zurutto York Yankees- and Dallas York City agency contract opportunities. Real estate listings are provided in order of square Brooklyn 142 W. 72nd St. Cowboys-backed enter- footage. This Mediterranean- The owners of sushi tainment firm will occupy

26 | CRAIN’S NEW YORK BUSINESS | JUNE 6, 2016 20160606-NEWS--0027-NAT-CCI-CN_-- 6/3/2016 5:09 PM Page 1

PHOTO FINISH

Posture perfect t a Con Edison refueling center and warehouse on Staten Island, workers loaded boxes and heavy equipment into a service truck. The “overhead” crew, Awhich services power lines, was standing a little straighter that day, thanks to a pilot program aimed at reducing on-the-job injuries. The program puts each worker in an “exo- skeleton,” a back brace designed by StrongArm Technologies, an industrial ergonomics company based in the Brooklyn Navy Yard, that eases strain on the lower back and forces wearers to adopt a better posture. “It directs me,” said Mike Fattinger, whose crew members on any given day could be carrying equipment weighing as much as 200 pounds. “I’m using muscles in my body I haven’t used in 10 years.” Injuries related to overexertion cost U.S. firms between $15 billion and $20 billion in 2014, according to the Occupational Safety and Health Administration. Include the hiring and training of replacement workers and the impact to the U.S. economy could be six times as high. Sean Petterson, the 24-year-old founder of StrongArm, said he felt called to focus on industrial workers after his father died from a heart attack on a job site. Ergonomics has traditionally targeted office workers, who are often higher paid than their industrial counterparts—and are also much easier to study. “The desk doesn’t move,” said Petterson. “You’re studying sitting and its effects on the lower lumbar. Try that in an environment where you’re moving 4,000 packages, then jumping in a truck, then jumping down stairs.” — PETER D’AMATO PETER D’AMATO

JUNE 6, 2016 | CRAIN’S NEW YORK BUSINESS | 27 Think you know our coverage? Think again.

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