Industry Gets Reprieve in Broker Fee Battle REBNY Mobilized Quickly Against the Policy Change

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ASKED & ANSWERED Meet Memorial Sloan Kettering’s rst-ever tech chief PAGE 11 SAFETY FIRST The city stakes its claim as a cybersecurity hub PAGE 3 CRAINSNEWYORK.COM | FEBRUARY 17, 2020 | $3.00

REAL ESTATE Industry gets reprieve in broker fee battle REBNY mobilized quickly against the policy change

BY RYAN DEFFENBAUGH

n Albany judge’s decision to press pause on a state policy that would have outlawed Acommissions paid by tenants has disappointed renters and o ered a reprieve to brokers, who say the business of leasing New York City’s 2 million apartments has been thrown into chaos in the past week. Brokers and tenants were whip- sawed by the Department of State’s interpretation of rent-reform laws. Seemingly out of nowhere, the department outlawed nders fees, but days later state Supreme Court Jus- tice Michael Mackey placed a tem- porary restraining order on the policy. “We were told, overnight, ‘Well, you’ve run your business this way for decades, but you have to make a change right now,’” said Sarah Saltzberg, co-founder of the Bohe- mia Realty Group brokerage. “ e judge’s order was absolutely the RETAIL n his more than 30 years right thing to do.” running supermarkets in e industry mobilized quickly against the policy change. e Real New York, Nick D’Agostino Estate Board of New York, which has seen traditional grocers represents landlords and thou- get walloped from all sides. sands of brokers, promised to sue I as soon as the state published the FOOD FIGHT Along with high rents and new document Feb. 4. Less than a week regulations, neighborhood su- later, the rule was placed on hold. Local supermarkets are under siege, but are e lawsuit, which REBNY led permarkets must contend with in collaboration with the New York fruit-and-vegetable street carts to blame? deep-pocketed, nonunionized State Association of Realtors, claims newcomers Whole Foods and there is no clear legislative history BY MATTHEW FLAMM to back the state’s interpretation of the rent laws. Broker fees were not D’AGOSTINO says he has laid off produce workers in his stores as street vendors eat into his pro ts. See VENDORS on page 18

BUCK ENNIS See BROKERS on page 4

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CN019586.indd 1 2/11/20 3:24 PM POLITICS MARGALIT sees great opportunity Council in the city. con rms Taxi and Limousine chief Jarmoszuk takes the wheel at the agency at a contentious time

BY WILL BREDDERMAN

here's a new commissioner in the drivers seat at the city's cab and for-hire vehi- Tcle regulator. e City Council approved Mayor Bill de Blasio's nomination of Aloysee Heredia Jarmoszuk to lead the Taxi and Limousine Commission on Tuesday. e often-controversial o ce has lacked an o cial czar since the resignation of Meera Joshi in March 2019. Members of the local legisla- ture lauded Jarmoszuk, the former chief of sta to Deputy Mayor Laura Aglin, almost as ercely as they hammered de Blasio's previ- ous nominee Je ery Roth last year. "I'm excited about her coming in to lead the TLC," said Bronx Councilwom- an Vanessa Gibson. "I believe her experience working in the deputy mayor's o ce and the De- partment of

TWITTER Education, JARMOSZUK and really coming to this with a really unique perspective, is going to be transformative." But Jarmoszuk takes the wheel at the agency at a contentious time. e value of yellow cab me- dallions has cratered in recent years—which the administration has blamed on the advent of Uber and Lyft, but which e New York Times and others have attributed to mounting driver bankruptcies driven by risky loans and the city's own irresponsible auction poli- cies. TECHNOLOGY Medallion holders Recently, the council and the industry convened a task force which outlined a number of measures the city could take to bail out underwater medallion holders. Upper Manhattan Council- COMPUTER COPS

man Ydanis Rodriguez, who BUCK ENNIS chairs the Committee on Trans- portation, urged Jarmoszuk to nside a cast-iron SoHo building, up a stair- Cybersecurity o ers peace of mind—until it swiftly adopt these proposals as As hackers’ tactics case designed by Apple Store architect Pe- doesn’t work, which is often. ere have been he welcomed her to the job. intensify, the city invests ter Bohlin, you’ll nd a bustling tech hub 10,000 publicly noti ed data breaches since "A lot of work has to be done," packed with busy young entrepreneurs 2005, according to the Identity eft Resource Rodriguez said. "Drivers are fed $30 million to become a preparing for their auditions. Center. Last year alone there were 1,473, a 17% up, they're tired. ey cannot wait Many of them are developing and selling cy- increase from 2018. e number of personal re- for another study, they cannot cybersecurity hub Ibersecurity solutions, which are what just about cords exposed last year fell by 65%, but that’s wait for another task force. ey every business desperately wants more of these need action." ■ BY AARON ELSTEIN days. See CYBER on page 19

FEBRUARY 17, 2020 | CRAIN’S NEW YORK BUSINESS | 3

P003_CN_20200217.indd 3 2/14/20 2:41 PM our members,” McDonough Domi BROKERS said. FROM PAGE 1 If the state’s guidance stands up 5 THINGS YOU SHOULD KNOW to the court challenge, the rule mentioned when the law was up change could threaten the liveli- ABOUT THE BROKER FEE LAWSUIT for debate in June, REBNY said. hood of the city’s more than 25,000 e restraining order does not brokers, because it is unclear how guarantee that the courts will side many landlords would be willing to 1. THERE WAS NO DISCUSSION with the real estate groups. e De- absorb the fees and continue to use REBNY’s lawsuit argues that the partment of State will present its the agents. guidance violated the state’s legis- side in a hearing in March. A company such as LCOR, which lative procedure. Broker fees, the “ is is de nitely more of a pyr- has a rental portfolio in New York ling asserts, did not come up in rhic victory,” said Lisa Faham- and several other U.S. markets, is debate leading up to the June vote Selzer, a partner at Manhattan real better set up to continue paying on rent-law reform. As evidence, estate law rm Kucker Marino. “For brokers; most of its apartments are the ling includes an exhibit of a now it’s business as usual, but ulti- already no-fee or handle leasing description of the legislation that mately this issue can swing either in-house. Manhattan state Sen. Brian Kava- way, with no one privy to how the “But if you are a smaller land- nagh, chairman of the Committee judge will rule.” lord, less capitalized, and have a on Housing, provided during a Even if the real estate industry rent-regulated building, this really hearing on the bill. His remarks were to overturn the changes the way you do do not include a direct reference guidance, Faham- business,” said David Sig- to broker fees, although he did Selzer said, state law- % man, an executive vice discuss measures to cut costs for makers could amend the 6 president and principal renters before they move in. rent-reform laws to out- RENTS at LCOR. 2. CHANGE IS SLOW INCREASE law broker fees. ose landlords could It was business as usual in the ISTOCK ere also could be ac- on average for be unable to raise rents apartment market for the seven apartments tion at the city level. to pay for a broker, Sig- months following approval of the law, the lawsuit says, at least when it came to the payment of commis- where fee was Councilman Keith man said, “but they don’t sions. Brokers working for landlords still collected their fees from the renters. “This is not surprising since removed Powers, who introduced have the time to show nothing in the language of the act, or in any public announcements or guidance by the DOS, had signaled a bill during the summer apartments and vet all of that [the law] called for a fundamental change in how real estate brokers should be compensated,” the to limit the cost of such fees, said the potential tenants.” lawsuit says. he would like to see the state’s pol- 3. THERE ARE NO REFUNDS icy codi ed into city law. He has ‘Only-in-New York creation’ The day after the guidance came out, renters were disappointed to hear that they couldn’t get a refund not yet introduced any legislation A long history exists of millions for leases they signed after the law was enacted, only for leases signed beyond the Feb. 4 date of the aimed at doing that, however. of New York renters detesting and guidance. A Department of State spokeswoman said in a statement the next day that its interpretation trying to avoid these fees. A 1967 of the law does not apply retroactively. That announcement is now part of the REBNY’s legal argument: The impact New York Times article detailed “The DOS’s assertion that [the guidance] does not apply retroactively demonstrates that (1) this new rule e state’s guidance on broker how "many a nancially pressed is a drastic departure from current market practice, and (2) the language of [the law] itself failed to put costs was cheered by tenant advo- apartment hunter ... counts it as a anyone on notice that commissions paid by tenants to brokers appointed by landlords were somehow cacy groups and progressive politi- success if he can save at least a bro- being abolished.” cians, who described the fees, ker’s fee.” irty years later the 4. MESSAGING HAS BEEN MIXED which range between one month’s same publication declared that The lawsuit annexes a page that was still live on the department’s website after it had released the rent and 15% of the yearly rent, as a “the broker’s fee for rentals, like the guidance warning brokers they could be punished for collecting the fees. “It is important to understand barrier to stable housing. $9 movie ticket, is an only-in-New that, even if the broker is representing the landlord, in most transactions the tenant is responsible for pay- “For people who have to resort to York creation.” ing the broker’s commission,” the page reads, as exhibited in the lawsuit. The provided URL in the lawsuit a variety of sources to help them, Without their services, brokers no longer appears as active on the website. high fees can create a barrier from say, landlords would just push the “The fact that the DOS included this information on its website even after the act was passed, and con- getting an apartment, particularly cost of marketing and leasing their tinues to include it on its website to this day, is a clear indication ... the DOS did not understand the act to for people who are in a shelter and apartments into higher monthly have any impact on a broker’s right to collect a commission,” the lawsuit argues. trying to get to permanent hous- rents. e listing website Property- 5. CONFUSION REMAINS ing,” said Robert Desir, a sta attor- Club found that rents increased an Brokerage rms received no notice or advice on how to interpret the new guidance, the lawsuit says. ney at the Legal Aid Society in New average 6% for apartments where Meanwhile, the rms had thousands of pending rental transactions that were held up in the confusion York City. the fee was removed in the six days that followed. rough the lawsuit and in inter- between the guidance and the re- “The unwinding of these pending transactions, due to the DOS’s erroneous and arbitrary interpretation views, brokers described a state of straining order. of [the law], will harm landlords (who face the prospect of losing substantial rental income they have rea- chaos in the market for the ve “Economic eory 101 suggests sonably expected to receive) and brokers (who earned their commissions by working diligently to procure days the guidance was in e ect. it shouldn’t make any di erence at the transactions), and most of all consumers, who may not then close on apartments they seek to rent, Firms had thousands of pending all who pays the fee,” said Heski and have been misled by the DOS’s erroneous and arbitrary interpretation and improper rulemaking.” transactions that were held up in Bar-Isaac, an economics professor — R.D. the confusion that followed, with at the University of Toronto who little advice on what to do next. has studied the New York rental “ e unwinding of these pend- market. ing transactions, due to the [De- “If there is going to be a broker ed the guidance at the hearing. CONFERENCE CALLOUT partment of State’s] erroneous and involved, somebody’s paying the Department o cials have kept a arbitrary interpretation of [the law] fee,” Bar-Isaac said. low pro le throughout the storm FEB. 19 will harm landlords ... brokers ... Paying a fee upfront makes sense that followed the document’s pub- and most of all consumers, who for a renter who plans to stay in an lication, issuing only a single state- CRAIN’S BUSINESS may not then close on apartments apartment for several years and, ment to the press that clari ed the BREAKFAST FORUM they seek to rent,” the lawsuit therefore, would bene t most from policy does not apply retroactively charges. lower rent. to the rent law’s e ective date. Join Crain’s New York Business Heather McDonough Domi, a Short-term renters, meanwhile, e clari cation annoyed rent- on Feb. 19 as Public Advocate broker with Compass, said the could save money by skipping out ers, who could otherwise seek re- Jumaane Williams discusses his guidance caused enough confu- on the fee and accepting a higher funds on fees paid after the law was role as an activist and elected sion to nearly scuttle a lease she monthly cost for the year they rent signed. It is now part of REBNY’s of cial and his advocacy had worked on, even after the the apartment. case against the guidance. for social justice. terms were agreed to and the “ at suggests that these di er- “ e DOS’s assertion that [the checks were cut. ent payment pro les are going to guidance] does not apply retroac- “Do I have to give the check be used by landlords to select dif- tively demonstrates that ... this new back? Do I have to tell my owner ferent kinds of tenants,” Bar-Isaac rule is a drastic departure from NEW YORK ATHLETIC CLUB that he has to pay me the check?” said. current market practice,” the law- asked McDonough Domi, founder suit reads, “and the language of 8 to 9:30 a.m. and chairwoman of the New York What’s next [the law] itself failed to put anyone Residential Agent Continuum, a e case returns to court March on notice that commissions paid crainsnewyork.com/ broker advocacy group. 13. by tenants to brokers appointed by PublicAdvocate2020 “As many questions as I had, I State lawyers likely will provide a landlords were somehow being was hearing the same things from fuller explanation of what prompt- abolished.” ■

Vol. 36, No. 5, Feb. 17, 2020—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for bimonthly in January, July and August and the last issue in December, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing of ces. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, PO Box 433279, Palm Coast, FL 32143-9681. For subscriber service: call 877-824-9379; fax 313-446-6777. $3.00 a copy; $129.00 per year. (GST No. 13676-0444-RT) ©Entire contents copyright 2020 by Crain Communications Inc. All rights reserved.

4 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 17, 2020

P004_CN_20200217.indd 4 2/14/20 4:46 PM REAL ESTATE Residential rents in LIC rose even without Amazon The ecommerce giant announced it would build its HQ2 in Queens on Valentine’s Day two years ago

BY DANIEL GEIGER after its arrival. ing attention, it certainly put it on Instead, brokers say it enhanced your map,” said Eric Benaim, the t turns out that some of the fears its continued upward trajectory by CEO and president of the Long Is- that Amazon’s arrival in Long Is- bringing the neighborhood wide- land City focused residential bro- land City would push up home spread attention from buyers and kerage Modern Spaces. “People are Iprices in the neighborhood were the general public. thinking that if LIC was good justi ed, according to experts and “People in Middle America sud- enough for Amazon, maybe it’s data on the doomed deal’s eect on denly knew where Long Island City worth a look. So just them selecting the market. was. So if you’re a New York City the neighborhood has been a big

From November 2018 when Am- buyer who wasn’t necessarily pay- boost to activity and prices here.” ■ BLOOMBERG azon announced that it would build a second headquarters on the Queens waterfront neighborhood to Valentine’s Day two months later when the tech giant abruptly canceled the blockbuster deal after being hit with a urry of criticism and opposition, the neighborhood re- corded a surge of buyers. Patrick W. Smith, a residential sales broker with Corcoran who specializes in LIC deals, calculated that 336 condos were sold in the neighborhood in 2019, an uptick of

“THE AMAZON EFFECT WAS REAL. IT HAD A MAJOR IMPACT ON THE MARKET.”

over 15% from the year before and over 35% in 2017. About 45% of those condos went into contract during the two-month window when Amazon appeared to be planting its ag in Long Island City. “e Amazon eect was real,” Smith said. “It had a major impact on the market in terms of creating a surge of deal activity and upward pressure on prices.” In 2018 and 2017, about 22% of each respective years’ deal activity went into contract during the same window of time—showing that sales activity roughly doubled in the neighborhood during Ama- zon’s brief arrival in late 2018 and early 2019. Smith’s report also found that prices rose as a result of the up- swing in activity, with the median A forward-thinking real sales price rising 14% from 2018 to estate firm providing brokerage, $993,401 in 2019 and the median price per square foot growing 9% property management, and during the same period to $1,304— consulting services since 1920. making the neighborhood one of the most expensive outside of Man- hattan. Smith acknowledged that some of that increase was due to newly built residential projects and their pricey units hitting the market, but said he believes Amazon bolstered that. 212.679.5500 “We had fancy new develop- adamsre.com ments opening up and selling for the rst time and that pushed up the market. But if Amazon hadn’t arrived, that per square foot growth in prices may have been 6% instead of 9%,” Smith estimated. Amazon’s decision to walk away from the second headquarters in Long Island City didn’t tank the LIC residential market that had soared

FEBRUARY 17, 2020 | CRAIN’S NEW YORK BUSINESS | 5

P005_CN_20200217.indd 5 2/13/20 3:24 PM IN THE MARKETS SEC wants to muzzle Stringer The government watchdog wants to protect public companies from shareholders

very year since 2014 the city hold Schwab stock.) cause there’s no way to comptroller’s o ce has Last year the company argued ensure companies will asked Charles Schwab that the workforce data sought by take a social-media cam- Corp. to publish a report Stringer “could be misconstrued in paign seriously. Indeed, Edisclosing how much of its work- ways that could encumber our ef- there are often good rea- force is female or nonwhite. forts to achieve greater diversity sons for them to ignore Schwab has refused. and inclusion.” It added, “Stock- online organizing that e giant San Francisco–based holders defeated this proposal in purports to be grass- nancial institution val- each of the last ve years.” roots. ues diversity. It notes it Soon it may be easier “Social media is not a has been named to the for companies to muzzle replacement for, or even Forbes list of America’s the likes of Stringer. e a supplement to, the cur- best employers for diver- Securities and Exchange rent proposal submis- sity and achieved a 100% Commission is consider- sion and resubmission rating from the Human ing a rule change that process,” said Amy Rights Campaign Corpo- would make it harder for O’Brien, head of respon- rate Equality Index since shareholders to intro- sible investing at TIAA. 2004. Schwab greeted duce resolutions voted Shareholder resolu- Comptroller Scott String- on at annual meetings. tions are nonbinding, er’s proposal with modest AARON ELSTEIN Among other changes, which means boards are praise, describing it as the SEC is proposing to free to ignore them if STRINGER “perhaps well-intentioned” when make it easier for companies to they think it’s in their rst introduced. drop resolutions that fail to receive best interest to defy in- But Schwab’s stance hardened signi cant increases in support. vestors, who use the res- after Stringer brought the resolu- e SEC says investor resolu- olutions to engage with

tions may place an companies on weighty GETTY IMAGES undue burden on matters, including global SHAREHOLDER RESOLUTIONS companies, can be a warming, lobbying costs and exec- spot is often the most compelling resolutions led between 2009 and waste of time and re- utive salaries. moment of any annual stockholder 2017 found that 35% of proposals ARE NONBINDING, MEANING sources, and may meeting, which is why companies led the company in question to even be obsolete. Prying eyes often don’t like resolutions very commit speci c actions. BOARDS CAN IGNORE THEM “Shareholders now Resolutions are usually intro- much. Ultimately, change came to have alternative duced by public pension funds, But they have an e ect in hold- Schwab after shareholders applied tion back for a vote at every annual ways, such as through social me- cranky individual investors, labor ing companies accountable. Fiona pressure. Stringer’s resolution got a stockholder meeting, where it usu- dia, to communicate their prefer- groups or even religious orders. Reynolds, chief executive of Princi- big increase in support last year, really received only 25% of the vote. ences to companies and e ect e moment when the sponsor ples for Responsible Investment, ceiving 40% of votes cast. After that ( e comptroller represents the change,” the agency said. stands up to make her pitch and observed in the Financial Times result Schwab started releasing the city pension funds, and those funds at’s a crummy argument, be- puts the CEO and the board on the that an analysis of climate-related workplace data. ■

ON NEW YORK Gig-economy workforce soars past 150,000 But growth isn’t the whole story for these poorly paid contractors

n 2011 only about 1,000 people line companies to recognize their transportation, social worked as contractors in the workers as employees or to nd assistance and build- gig economy for online plat- some other means to raise their ing services. e eco- forms in the state. Today the wages and pay their bene ts. Its nomic statistics on Inumber exceeds 150,000. object is to broaden the these workers are at is certainly a star- discussion to similar grim. eir median tling increase, but it workers. income is $20,000, doesn’t tell the whole sto- and only transporta- ry. Gig contractors repre- Hustle up tion and construction sent only 17.5% of all low- e center took a deep even reach $25,000 a paid independent dive into the American year. A quarter are workers in the state and a Community Survey and covered by Medicaid, small sliver of the total the Census Bureau’s non- and a fth have no workforce. Yet most of employer statistics. It health insurance, these workers share the GREG DAVID eliminated workers in compared with a same issues. high-paying industries, statewide gure of e numbers come such as nance, informa- 5%. from the most comprehensive look tion and professional services. It Demographically MOST GIG so far at the gig-economy work- also eliminated sectors in which most are men (60%) workers are force, released last week by the independent contractors are likely in the prime working men ages 25 to Center for New York City A airs at to work for multiple organizations, ages of 25 to 54 rather 54 with little such as the arts, en- than young people education.

tertainment and just starting out. Half BUCK ENNIS THERE ARE A LOT OF OTHER recreation, and in have a high school di- which individuals ploma or less. While statewide 44% signi cant number of low-paid and Parrott notes that minimum- WORKERS IN THE SAME have a college de- are people of color, in New York misclassi ed people, there are a lot wage increases in New York boost- gree and set their City the gure is 66%. Minorities of other workers in that same situa- ed in ation-adjusted wages of pay- SITUATION own fees and the account for 87% of those working tion,” said James Parrott, one of the roll workers between 2013 and conditions in their in transportation in the city. primary authors of the study. 2018. In ation-adjusted earnings contracts. “A lot of the discussion is that e Flexible Work for New York of low-paid independent contrac- the New School. e study is timed e remaining independent something needs to be done about Coalition, which represents the tors in personal services have de- to in uence the intense debate in contractors work for companies in online-platform workers when this platform companies, did not re- clined and risen less than payroll Albany about whether to force on- personal services, construction, report shows that while that is a spond to a request for comment. for sta in the other sectors. ■

6 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 17, 2020

P006_CN_20200217.indd 6 2/14/20 2:58 PM HEALTH CARE ‘Lives are on the line’ if city has to shoulder bigger Medicaid burden, de Blasio says

BY JENNIFER HENDERSON A few years ago, New York City CHECKUP Health and Hospitals, which more ayor Bill de Blasio tes- than 1 million New Yorkers depend Total investment in city-based health ti ed last week that on for care, was “teetering on the startups shifting billions of dol- brink of bankruptcy,” de Blasio $2.6B lars in Medicaid costs said. e cuts would undermine Mfrom the state to local governments the scal progress the public health would have dire eects. system has made, he added. $1.9B “Lives are on the line,” the mayor Specialty care in the areas of said at a budget hearing in Albany. cancer, heart disease and mental “We ask the state to remove the cuts health would be aected, de Blasio to localities and safeguard public said. health by focusing on nding e- Last month Dr. Mitchell Katz, ciencies and reforms in the state- president and CEO of the health run Medicaid program.” system, told Crain's, “From Health Amid a $6 billion de cit, the state and Hospitals’ point of view, we 2018 2019 has continued to point the nger at want to try to work with the city local governments when it comes and state to come up with a budget DE BLASIO SOURCE: New York City Health Business Leaders

to increased Medicaid spending. that lets us take care of our NYCMAYORSOFFICE Although the city’s contribution patients.” to Medicaid is about $5 billion a Katz said the hospital system posed three recommendations. state to revise the Medicaid global ing the growth in the city’s local year, it could be on the hook for $1.1 would “temporarily take a pause First, he said, the state should work gap to reect the health care that Medicaid share and provided $17.8 billion more if the state’s latest on administrative hiring,” continue with local governments to achieve New Yorkers need and its real costs. billion in cumulative school aid in- Medicaid redesign team fails to nd to work on exceeding its revenue- savings by weeding out fraud and ird, the mayor recommended creases, and this year is increasing $2.5 billion in savings. over-expenses target and stay fo- waste in the program and increas- that the state ask its wealthiest res- funding to the city by $318 million. “If we sustain this level of cuts, cused on a move to value-based ing administrative eciencies that idents to pay their “fair share” of “e mayor’s solution to raise we will have to reduce health ser- payments. could better determine when indi- taxes to make sure everyone has taxes and increase spending with- vices for New Yorkers profoundly— viduals are no longer eligible for access to health care. out any accountability,” he contin- closing clinics, laying o doctors Alternatives? Medicaid. State Budget Director Robert ued, “is a recipe for scal instability and nurses,” the mayor said. e De Blasio said that elsewhere in In the city, that could equate to Mujica Jr. said in a statement pro- and ineciency in a program eects would extend beyond health the state, the funding cuts could $260 million in savings, the mayor vided to Crain’s that under de Bla- charged with caring for the most care to afterschool and youth- bankrupt localities. said. sio’s administration, “the state has vulnerable among us, and that’s employment programs. To avoid them, de Blasio pro- Second, de Blasio called on the paid more than $12 billion cover- unacceptable.” ■ Walgreens to roll out LabCorp services in some area drugstores this year

BY JONATHAN LAMANTIA

algreens is planning to add LabCorp services to 15 of its drugstores in the Redefining Wmetro area later this year as the pharmacy looks to provide more health services, the company con- rmed to Crain’s. what you should LabCorp will oer diagnostic testing at some locations in Nassau, Suolk, Westchester and Rockland counties in New York; Fair eld expect from County in Connecticut; and Hud-

son County in New Jersey. BLOOMBERG e LabCorp units will start opening in the middle of the year, a pledged to open at least 600 within its stores available to Fedex your accountant. Walgreens spokeswoman said, and patient-service centers in Wal- and Sprint in order to get customers the company is nalizing the spe- greens locations. in the door. But growing the chains’ ci c stores. None of the locations CVS has aggressively added in-store health care business has will be in New York City, she said. health services to its stores, includ- been key, said Brian Tanquilut, a “ese sites reect Walgreens ing its MinuteClinics and Coram in- Nashville-based analyst covering and LabCorp’s shared objective to fusion centers. In New York 18 CVS the industry for Jeeries. grassicpas.com/story provide a dierentiated, consumer- locations have optical shops as well. “It helps them reinforce the strat- focused experience that provides When the chain acquired Aetna in egy of being health care–focused as access to a broad range of health 2018, it said it would create a series health care shifts to more consum- care services,” the Walgreens of HealthHub locations to help pa- er settings,” he said. spokeswoman said. tients manage chronic conditions. Tanquilut said the expanded roll- Last year it announced plans to out of LabCorp services inside Wal- Industry trend open 1,500 HealthHubs by 2021. greens stores makes it easier for e drugstore chain’s work with e closest HealthHubs to New patients to follow through on their LabCorp is one of several examples York City are in southern New Jer- doctors’ lab requests and generates of retailers pushing further into sey and Philadelphia. more foot trac for Walgreens. health care. LabCorp rst started As traditional retail has struggled, “On the surface, CVS is ahead of embedding lab-testing sites in Wal- the chains have looked for a boost the game in terms of shifting the greens stores in 2017, and the sites by teaming with other brands. For focus to health care,” Tanquilut are now in nine states. LabCorp example, CVS also has made space said. ■

FEBRUARY 17, 2020 | CRAIN’S NEW YORK BUSINESS | 7

P007_CN_20200217.indd 7 2/14/20 2:48 PM VIEWPOINTS president K.C. Crain senior executive vice president Chris Crain group publisher Mary Kramer EDITORIAL publisher/executive editor Frederick P. Gabriel Jr.

EDITORIAL Give New Yorkers a say on the assistant managing editors Christine Haughney (special projects), Janon Fisher, Gabriella Iannetta (digital) LaGuardia AirTrain project senior editor Telisha Bryan associate editor Lizeth Beltran (digital) art director Carolyn McClain n August travelers ew into Biden famously compared it to a photographer Buck Ennis LaGuardia Airport, picked up third-world country. data editor Gerald Schifman their luggage and then struck Gov. Andrew Cuomo has struck senior reporters Aaron Elstein, out on foot for a sweat- on a solution similar to the Matthew Flamm, Daniel Geiger, soaked hike across the Grand AirTrain to JFK, which was built in Jonathan LaMantia Central Parkway to Ditmars 1998 despite community opposi- reporters Will Bredderman, Ryan Deffenbaugh, IBoulevard. ere, they battled one tion. at tram has alleviated most Jennifer Henderson another for rides to Manhattan. of the fear of missed ights, and columnist Greg David Welcome to New York City. although it costs a little extra, it’s contributors Tom Acitelli, Ronald DeCicco, Airport construction and still cheaper than a cab. Cara Eisenpress, Cheryl S. Grant, weather-induced delays were to So it would gure that what Steve Krupinski, Danielle McManus Sladek, blame, according to the Port worked for travelers ying out of Mark Yawdoszyn Authority. But you also could South Ozone Park also would have to contact the newsroom: blame a lack of urban planning. worked for the poor souls trekking www.crainsnewyork.com/staff Getting to almost any airport is through northern Queens during 212.210.0100 rough. A trip to Newark requires at the dog days of last summer. 685 Third Ave., New York, NY 10017-4024 least two trains or a bus from the Cuomo’s $2 billion plan to build ADVERTISING

Port Authority Bus Terminal on a similar people mover, which ANDREW CUOMO THE OFFICE OF GOV. 42nd Street. A trip to JFK through would take passengers from the www.crainsnewyork.com/advertise stop-and-go tra c on the Belt Willets Point Long Island Rail say more straphangers on the AirTrain faced similar resistance senior account managers Rob Pierce, Parkway or the dreaded Van Wyck Road and 7 train stops to Midtown, already-congested 7 line would over funding and community Stuart Smilowitz, Tori Weil seems like the right increase travel time. e LaGuar- impact. But because the neighbor- account executive Devin Cavallo THE JFK AIRTRAIN FACED way forward. dia AirTrain starts farther away hoods and transit analysts were integrated marketing manager Jonathan Yan, A passenger could from the city center than current given their say, the project went 212.210.0290, [email protected] SIMILAR RESISTANCE FROM hop on the train at bus routes to the airport, and the forward. e tram was projected to associate art director/marketing 34th Street–Hudson cost is too high. move 4 million passengers a year, Charles Fontanilla, 212.210.0145, THE COMMUNITY Yards and, according ere are nearly 50 alternative but it now shuttles more than [email protected] to Port Authority plans, such as building out the N twice that from outside the people on the move manager Debora Stein, [email protected] Expressway can leave drivers with estimates, be at the terminal in line and increasing bus service. terminal. cnyb coordinator Melissa Shi, white knuckles. half an hour. e plan would e Federal Aviation Adminis- e governor and the FAA 212.210.0217, [email protected] Although it is closer to Manhat- reduce tra c congestion, which is tration, which has embarked on an should let people weigh in and tan, LaGuardia somehow seems good for the environment and environmental review, has ignored explain their decision-making CUSTOM CONTENT the most remote. e M60 bus can good for wilted travelers to and those suggestions. In fact, there’s process if they want the plan to go director of custom content get you there—eventually. from the city. been little input from anyone through swiftly. Otherwise, we Patty Oppenheimer, 212.210.0711, Adding to the pain, once you get Not everyone agrees. Neighbor- outside the Port Authority or the could be looking at lawsuits and [email protected] there, the airport leaves a lot to be hood groups and transit analysts governor’s o ce. long delays, which would lead to senior manager, custom content desired. Former Vice President Joe have some notes on the plan. ey It need not be this way. e JFK more gridlock at the terminal. ■ Sophia Juarez, [email protected] EVENTS OP-ED www.crainsnewyork.com/events manager of conferences & events Ana Jimenez, ajimenez@crainsnewyork HQ2 died, but city tech lives on REPRINTS director, reprints & licensing Lauren Melesio, Big rms plan to add 20,000 jobs in the next three years 212.210.0707, [email protected] PRODUCTION BY JULIE SAMUELS large tech companies still see the University of New York. at pro- can secure funding as long as the production and pre-press director value, space and talent necessary gram alone has corresponded with idea is good. Simone Pryce n the year since Amazon can- to grow in the city. Equally relevant a 94% increase in women obtain- Failing to do these things will media services manager Nicole Spell celed its HQ2 plans for Queens, is the type of jobs these places are ing computer science degrees at mean we lose progress (and dol- SUBSCRIPTION CUSTOMER SERVICE predictions about the e ects on seeking to ll. Big Tech is creating CUNY. lars) to prejudice. www.crainsnewyork.com/subscribe INew York’s tech sector have ranged opportunities beyond just coding Finally there’s venture capital. Geographic representation is [email protected] from cynicism to unease. and software, from sales associates Last year startups in the city gar- another area needing improve- 877.824.9379 (in the U.S. and Canada). Many experts suggested the de- and marketing strategists to graph- nered a record $17.2 billion from ment. Right now our tech sector is $3.00 a copy for the print edition; or bacle would create a cataclysm, ics artists and analytics experts. VC rms (a 20% year-over–year in- too concentrated in Lower Man- $129.00 one year, for print subscriptions from billions in lost tax revenue to Industry giants are only one part crease); other evidence shows that hattan and Midtown; the outer with digital access. tens of thousands of forfeited jobs, of the picture. While the tech sec- VCs are siphoning funds out of Sil- boroughs miss out on the growth. Entire contents ©copyright 2020 in our ecosystem’s growth. But 52 tor boasts more than 330,000 jobs, icon Valley to pump growth into Despite these challenges, there’s Crain Communications Inc. All rights weeks is a long time to collect evi- a signi cant portion of them are markets like ours. no doubt that things are still look- reserved. ©CityBusiness is a registered dence, and so far the verdict is found in our vast—yet growing— None of this is to say that things ing up for New York tech. trademark of MCP Inc., used under license clear: New York has weathered a network of small rms and are perfect or that we are without Yes, the HQ2 fallout was a blow, agreement. big breakup, taken positive steps early-stage startups. at group challenges. It’s likely that the HQ2 but all the available evidence CRAIN COMMUNICATIONS INC. forward and proved more resilient comprises roughly 9,000 compa- meltdown created questions in the shows that the innovation econo- than any of the naysayers thought. nies, a number that continues to minds of some entrepreneurs and my is still humming along. Yes, we chairman Keith E. Crain To begin with, consider one fact: increase while attracting waves of investors about doing business in need to address certain issues (and vice chairman Mary Kay Crain Tech’s big four (Google, Apple, highly skilled workers to the city. New York. tackle forthcoming debates such president K.C. Crain Facebook and—yes—Amazon) New York is slowly challenging It’s also true that our ecosystem as those on gig-economy regula- senior executive vice president Chris Crain now plan to have a combined California’s standing as the startup generally has to address matters tions), but there’s no question that secretary Lexie Crain Armstrong workforce of 20,000 in the city by capital of the world. such as venture capital being our sector is up for the challenge. editor-in-chief emeritus Rance Crain 2022, according to e New York We’ve seen an uptick in work- doled out disproportionately. It HQ2 was surely an in ection chief nancial of cer Robert Recchia Times. force development partnerships, must ensure that minorities can point, but one year later it’s clear founder G.D. Crain Jr. [1885-1973] Twenty thousand people is including the Women in Technolo- participate in what’s often seen as that moment made us stronger. ■ chairman Mrs. G.D. Crain Jr. [1911-1996] more than just an employment g- gy and Entrepreneurship in New a white man’s game. It must ure. It’s a historical investment in York program, a collaboration be- change its thinking about tech ed- Julie Samuels is the founder and our community and proof that tween Cornell Tech and the City ucation and guarantee that anyone executive director of Tech:NYC.

8 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 17, 2020

P008_CN_20200217.indd 8 2/14/20 6:06 PM OP-ED Stop New York’s impending senior housing crisis As the city’s elderly population grows, affordable homes must be built to handle their needs

BY ALLISON NICKERSON community—and the need has be complemented by mixed- never been more urgent. For exam- income, intergenerational housing y 2040 New York City’s ple, one study found that residents that would create an inclusive com- 65-and-over population is ex- at one aordable-housing building, munity that is so important to the pected to be greater than that which included on-site service pro- safety and well-being of those who Bof school-age children, an increase visions, had 51% lower odds of hos- wish to age in place. of almost 50%, to more than 1.8 mil- pitalization than seniors without Without signicant and strategic lion individuals. such support in the surrounding intervention, the housing crisis is Currently more than half of older ZIP code. likely to be exacerbated, unable to New Yorkers are renters, with 60% support a growing, nancially- spending more than 30% of their Senior privilege strapped older adult population. income on rent. e statistics are remarkable, and Even more pressing is the urgent Of the roughly 1.1 million New it is widely recognized that there is and timely need for political will to Yorkers over the age of 65, an esti- a dire need to create aordable se- challenge the status quo. mated 20% are living in poverty. As nior housing, but there are several Change will not happen without the population ages and the city seemingly insurmountable barriers consistent support from the local, continues to grapple with how to to do so. As indicated by the New state and federal governments. We accommodate its increasing popu- York State Association for Aord- ISTOCK should celebrate the ingenuity and lation overall, it is crucial that in- able Housing, these obstacles in- for the senior population. 30% to 70% of the 2019 area median determination of organizations that vestments at all levels of govern- clude the high cost of land acquisi- For example, the Go Broome de- income, as established by the De- are seeking the experience and ment are amplied to meet demand tion, the exorbitant cost of required velopment on the Lower East Side, partment of Housing and Urban skills of a private developer to fur- and combat this crisis-level short- infrastructure and “not in my back- if approved, would add approxi- Development. e project is the di- ther their mission and expand their age of housing supply and not for- yard” opposition to new develop- mately 488 rental homes with 115 rect result of a more than ve-year reach to more aging New Yorkers. get about our seniors who deserve ments. units set aside as low-income, per- visioning process from the Chinese To truly make New York a better the support to age at home. In spite of such challenges, we manently aordable senior rental American Planning Council, which place to age, together we must work To most eectively and ecient- are heartened by new, exemplary units. will provide all the necessary ser- to ensure that all New Yorkers have ly serve older residents, the data projects that recently have been Importantly, the proposal in- vices to the senior population, in- a place to safely and stably call continue to support the dynamic proposed and leverage a unique cludes a deep skew carve-out that cluding case-management assis- home. ■ model of aordable senior housing public-private partnership to over- would provide housing to seniors at tance, translation/interpretation with services—a model that im- come many of the development income-restricted rents ranging be- services and educational, recre- Allison Nickerson is the executive proves the quality of life, lowers hurdles, while simultaneously pri- tween $365 and $1,265 per month. ational and cultural classes. In ad- director of LiveOn, a nonpro t health care costs and enhances our oritizing aordability and services ese rents are underwritten at dition, the senior residences would aimed at helping the elderly.

OP-ED Turn trash troubles into tech solutions Foreign cities keep garbage off their streets—New York can too

BY EMIL SKANDUL to urban planning in which tech- stink out of urban living and into a overtaken by refuse that consumes back our streets and get the stains nology and embedded hardware in centralized collection facility. How- a precious, limited public resource: o of our sidewalks. ■ ew York City’s trash prob- the environment can provide pre- ever, although the trash technology shared urban space. We have lived lems are mounting. Black cise data and automate services on the island is said to be the largest as denizens among detritus for too Emil Skandul is a technologist and bags piled taller than pedes- such as trash pickup. Combine this in the U.S., the serpentine under- long, and now it’s time for us to take founder of Capitol Foundry. Ntrians line sidewalks daily, occa- with their ambitious zero-waste ground pipes may be too much for sionally over owing onto streets or strategy, which provides incentives the city’s infrastructure, its planning sidewalks for passersby to hurdle for individuals and businesses to and construction processes. over. Leaking waste permeates the separate trash and makes it easier So how can the city implement a air with putrid smells, welcoming by design, and Barcelona’s urban smart trash solution? tourists with a distinct urban innovation becomes a model for pungency. how New York can address waste Garbage in, garbage out is has been the experience for issues. Underground dumpsters can be generations, from colonial times In Milan, underground bins free placed on designated sidewalks or through the era of Lower East Side up sidewalks for pedestrians. is streets. ese underground waste tenements. It has aected quality of too has made it one of the highest- bins can be custom-built—as one life, health, livability and mobility. ranking cities in the world for its re- Swiss company is already doing— But it doesn’t have to be like this. cycling—nearly 54% of all waste col- for the infrastructure of New York’s lected. Add to the streets and underground. e con- list other European tainers can sit at street level, allow- WE HAVE LIVED AS cities that oer un- ing normal trac ow or for pedes- derground dump- trians to walk over them, barely DENIZENS AMONG sters, including Za- perceptible. When bins are full, sen- greb and Belgrade, sors will alert trash collectors. Ele- DETRITUS FOR TOO LONG and it’s clear there vator lifts will then allow the plat- are solutions out forms or individual bins to rise and ere are smart solutions for our there that are breaking new ground. be collected by trash collectors or trash problems that cities around India, which has faced waste trucks tted with automated cranes. the world have adopted that inno- challenges from its explosive popu- A step that elected ocials can vate on design, urban planning and lation and economic growth, has take is to plan and pilot smart un- technology. ese cities have opti- laid the underground work for a derground bins in the next major mized trash collection and hidden cleaner, trash-free future. Stroll street redesign, such as the 14th waste discretely in tech-tethered along sidewalks in Surat and you’ll Street redesign. From there, a city- containers underground and in see smart subterranean bins that wide, multiborough study to assess beaconing bins on streets. ping trash collectors to let them pedestrian trac and waste should From Buenos Aires to Barcelona, know the containers are full. be conducted to identify and priori- trash is collected in large, color- Underground waste manage- tize areas of highest need where coded bins on streets where trash ment, though, isn’t new to New trash obstructs and oends. can be sorted and collection can be York. Roosevelt Island’s 40-year-old Our current ways of handling automated and made easier. e automated vacuum waste collec- waste are nothing less than an un- Catalan coastal city has pioneered tion system runs a network of pneu- sanitary medieval practice. e city the smart city model, an approach matic tubes that suck trash and the has allowed entire sidewalks to be

FEBRUARY 17, 2020 | CRAIN’S NEW YORK BUSINESS | 9

P009_CN_20200217.indd 9 2/13/20 4:45 PM INSTANT EXPERT Here’s why New Yorkers will have trouble ying BY WILLIAM BREDDERMAN

THE ISSUE THE PLAYERS

On Feb. 6 U.S. Customs and Border Protection announced that New The two big personalities involved are President Donald Trump and Gov. Yorkers would no longer be eligible to apply for or renew membership Andrew Cuomo, longtime business and political associates recently turned 1in its Trusted Traveler programs: Global Entry, Nexus, Sentri and Fast. 2partisan opponents. Cuomo announced plans to travel to the U.S. capital These clearances allow preapproved globetrotters and goods to enter the Feb. 13 with a compromise plan: New York’s Department of Motor Vehicles will country through expedited lines and kiosks. grant Customs and Border Patrol access to the records of people applying and At fault, according to the federal agency: reapplying to Trusted Traveler programs. But it will not turn over the documents the “Green Light” law that Albany enacted of any other registered vehicle operators or provide the les to Immigration and last year, which extended driver’s licens- Customs Enforcement. es to undocumented immigrants—and forbade the Department of Motor Vehi- cles from sharing information with the federal government. The feds argue this means they cannot ascertain if travelers have criminal or arrest records that would ag them as a security threat. Now the state is signaling to Washington that it’s willing to open the books a crack to reopen the express lanes for its travelers.

WHAT’S NEXT

Cuomo conceded shortly after the Feb. 12 YEAH, BUT... announcement of forthcoming negotiations 5with Trump that the president would probably The latest face-off between Albany and Washington, like many in the past three years, revolves around reject his proposal. CUOMO COULD “I believe it is all politics,” he said in an appear- 3the issue of immigration—and, implicitly, the fate ance on Albany’s WAMC. OPEN DRIVERS’ of undocumented immigrants. The irony is that, because only people with valid immigration papers are eligible for His of ce sounded even less conciliatory in a INFORMATION TO statement that afternoon, calling Customs and Bor- Trusted Traveler programs, there is little chance that an der Protection’s actions “clearly politically motivat- WASHINGTON unauthorized foreign national would attempt to use them. ed, an abuse of government power and illegal.” Depriving New Yorkers of expedited processing tangles up Even if Cuomo’s plan somehow secured the the travels of citizens, green-card holders and commercial president’s approval, he might need to get the Leg- trucks crossing the Canadian border. islature to amend the language of the law to permit some record disclosure to the feds. New Yorkers could be waiting in line at the airport for a while yet. The state has promised to take the issue to federal court if no agreement is reached.

SOME BACKSTORY

Trump and Cuomo are Queens natives known for their bluster. But they face utterly different electoral landscapes. The commander in chief is looking for a 4reaf rmation of his administration in the fall, and he needs to rile his base to win even the kind of close-bitten victory he enjoyed in 2016. He has often attacked large blue states—including the one where he was born—on immigration and environmental matters to incite supporters in the Midwest and the South. Last week BuzzFeed reported that the administration examined a number of options for singling out and penalizing New York for denying access to DMV records. GETTY IMAGES, GOVERNORANDREWCUOMO/FLICKR, NYS.DMV GOVERNORANDREWCUOMO/FLICKR, GETTY IMAGES,

10 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 17, 2020

P010_CN_20200217.indd 10 2/14/20 10:50 AM ASKED & ANSWERED

What will be your speci c areas of focus? DOSSIER Digital is a journey. In many ways, you’ll never be done. CLAUS JENSEN The six steps we’re talking about right now are driving Memorial Sloan Kettering Cancer Center WHO HE IS Chief digital of cer and head integrated diagnostics, research and experience in the of technology, Memorial Sloan clinical setting ; turning data into actionable insights ; INTERVIEW BY JENNIFER HENDERSON Kettering Cancer Center building an open platform where people can rally around the same mission and plug into the same n October Claus Jensen joined Memorial EMPLOYEES Jensen oversees 800 uni ed integrated experience; research ; driving Sloan Kettering Cancer Center as its rst staffers out of the more than innovation at scale ; and reaching into people’s lives 20,000 total at MSK. chief digital of cer and head of technology. before they become sick. Jensen was recruited from CVS Health and TOTAL OPERATING REVENUE About $4.9 billion Can tech make care more affordable? Aetna, where he served as chief technology Our purpose is to conquer cancer, not just treat it. I I BORN Denmark of cer and head of architecture. His new role— believe I can help with that by leveraging technology. RESIDES Pawling, Dutchess County There are only so many really great cancer nurses and leading MSK’s digital transformation—will include cancer physicians in the world, and the problem goes developing tools to improve patient care and EDUCATION Ph.D. in computer science, beyond the means of our physical resources. The research. That will be no small feat, but Jensen Aarhus University, Denmark cost is important, but isn’t it more important to nd feels up to the task, in part because of the many FAMILY BUSINESS “I have 10 physicians a model that is not just affordable but makes your life worth living? process-based patents he holds. in my family and three nurses. They’ve always told me I was the black sheep.” How else does it help in the health care setting? Why is a digital transformation needed at MSK? CLEAR MISSION Jensen felt drawn to It’s a way to generate new insights. The expectations We have always pushed the boundaries of what else MSK because of the name it’s made are changing. The Disneys of the world, and to some we can do to take care of not just the physical aspects for itself in the health care industry and degree the technology giants, are spoiling people in of the person but the whole person. What’s interesting its mission. “Everybody who has had other industries in terms of what’s expected. One of the about digital is that it gives us so much more reach and anything to do with cancer—I certainly important parts of providing care for people during the the ability to have so much more insight. We can curate have in my family—knows MSK and most scary part of their life is trust. Ultimately we’re a patient’s experience to be meaningful across the entire what it stands for. ” getting better at conquering cancer. I don’t think we can journey of having to deal with cancer. without leveraging data for better insight and technology for more reach and a closer partnership. What kind of experience will you bring to the role? where the job was to push boundaries, It’s useful to have seen the other half of the health care reimagine what roles the technology You hold a few patents. What are they for? system. I have a really good understanding of retail and digital teams played, partner with They’re not in cancer care. The patents I have are in a pharmacies, pharmacy bene t managers and health the business parts of the organization variety of areas, and they’re very technical in nature. plans and realize that caring for the whole person is as in a different fashion and gure out how But all of them have to do with how do you build an much about logistics in some cases as anything else . we can align the workforces of health integrated experience, an integrated set of data and

I have ve years’ experience at CVS Health and Aetna, care . understanding. I think I’m up to about 18 submitted. ■ BUCK ENNIS

ONE WORLD TRADE CENTER PROUDLY WELCOMES “People say that New York City is the center of the universe, and One World Trade feels like the center of New York City. We’re thrilled to be at the ENTIRE 87TH FLOOR heart of it all.” —Ric Evans Special thanks to Kirill Azovtsev, Head of Global Workplace Calum Waddell and Seth Godnick and Real Estate Jones Lang LaSalle

Eric Engelhardt David Falk Jason Greenstein Peter Shimkin (212) 667 8704 (212) 372 2271 (212) 372 2349 (212) 372 2150 [email protected] [email protected] [email protected] [email protected]

Karen Kuznick Hal Stein Travis Wilson (212) 667 8705 (212) 233 8185 (212) 233 8167 [email protected] [email protected] [email protected]

FEBRUARY 17, 2020 | CRAIN’S NEW YORK BUSINESS | 11

P011_CN_20200217.indd 11 2/13/20 3:30 PM THE LIST TOP MANHATTAN OFFICE LEASES Largest transactions in 2019 ranked by square footage

MOUNTING MEGADEALS #1 The average size of of ce leases on Crain’s annual list reached a new high last year 550 Washington St. thanks to three topping 1.2 million square feet. will be entirely occupied by Google. 11 350K ■ Average square feet NUMBER of top-50 311,426 leases from tech rms, including two apiece from Google 300K and Facebook

250K

200K

2016 2017 2018 2019 COURTESY OF COOKFOX ARCHITECTS WORKING IN THE YARD The most of ce leases were taken in Midtown East. Three neighborhoods are tied with eight—one of which is the burgeoning commercial area near Hudson Yards. ■ Number of deals 335K SQUARE FEET leased Midtown East 10 by Amazon at 410 10th Ave. The space Far West Side 8 is less than one-tenth Financial District 8 the size of the rm’s #13 canceled Long Island Amazon will move Midtown West 8 City headquarters. into a redeveloped SOURCES: CoStar, 410 10th Ave. Hudson Square 4 Crain’s research COURTESY OF SL GREEN

SQUARE TENANT LANDLORD(S)/ LANDLORD/SUBLANDLORD ADDRESS FEET QUARTER TENANT REPRESENTATIVE SUBLANDLORD(S) REPRESENTATIVE(S) NEIGHBORHOOD DEAL TYPE 1 550 Washington St. 1,300,000 3rd Google CBRE Oxford Properties/Canada Oxford Properties Group/CBRE Hudson Square New lease Pension Plan Investment Board 2 1 New York Plaza 1,253,589 4th Morgan Stanley Services JLL Brook eld Asset Management Brook eld Of ce Properties Financial District Renewal/ Group Inc. expansion 3 50 Hudson Yards 1,201,409 4th Facebook Cushman & Wake eld The Related Cos./Mitsui Fudosan The Related Cos./CBRE Far West Side New lease America/Oxford Properties 4 375 Hudson St. 977,265 2nd Publicis Groupe CBRE Trinity Church Wall Street CBRE Hudson Square Renewal/ expansion 5 66 Hudson Blvd. 530,854 4th Debevoise & Plimpton Newmark Knight Frank Tishman Speyer Tishman Speyer Far West Side New lease 6 100 Pearl St. 526,552 1st NYC Health + Hospitals Newmark Knight Frank GFP Real Estate GFP Real Estate/ Financial District New lease Newmark Knight Frank 7 350 Fifth Ave. 501,409 4th LinkedIn Corp. CBRE Empire State Realty Trust JLL/Empire State Realty Trust Midtown West Renewal/ expansion 8 2 Manhattan West 481,678 4th Cravath, Swaine & Moore CBRE Brook eld Asset Management Cushman & Wake eld Far West Side New lease 9 622 Third Ave. 464,598 2nd McCann-Erickson JLL Cohen Brothers Realty Corp. Cohen Brothers Realty Corp. Murray Hill Renewal 10 55 Water St. 439,080 2nd EmblemHealth Colliers International Retirement Systems of Alabama CBRE Financial District Renewal 11 437 Madison Ave. 362,197 3rd WeWork JLL Kaufman Organization Sage Realty Corp./JLL Midtown East New lease 12 599 Lexington Ave. 338,057 3rd Shearman & Sterling CBRE Boston Properties Boston Properties Midtown East Renewal 13 410 10th Ave. 335,408 4th Amazon JLL SL Green Realty Corp. SL Green Realty Corp./ Far West Side New lease Newmark Knight Frank 14 1271 Sixth Ave. 322,149 2nd AIG JLL Rockefeller Group CBRE Midtown West New lease 15 341 Ninth Ave. 322,000 4th Dentsu Aegis Network Cushman & Wake eld Tishman Speyer Tishman Speyer Far West Side New lease 16 3 World Trade Center 307,970 4th Uber CBRE Silverstein Properties Silverstein Properties/CBRE Financial District New lease 17 1 Bryant Park 280,000 2nd Akin Gump Strauss Hauer & Feld CBRE The Durst Organization The Durst Organization Midtown West Renewal 18 55 Water St. 270,400 2nd Justworks Cushman & Wake eld Retirement Systems of Alabama CBRE Financial District New lease 19 30 Hudson Yards 264,787 4th Facebook Cushman & Wake eld The Related Cos. The Related Cos./CBRE Far West Side New lease 20 125 W. 55th St. 259,649 3rd MacQuarie Equities USA Inc. Savills JPMorgan Asset Management CBRE Midtown West Renewal 21 1 Soho Square 252,639 2nd Flatiron Health Inc. Savills Stellar Management Newmark Knight Frank Hudson Square Renewal/ expansion 22 300 Park Ave. 241,657 2nd Colgate-Palmolive Co. CBRE Tishman Speyer Tishman Speyer Midtown East Renewal 23 55 Water St. 219,564 4th L Brands CBRE Retirement Systems of Alabama CBRE Financial District New lease 24 151 W. 42nd St. 215,056 2nd BMO Capital Markets Colliers International The Durst Organization The Durst Organization Theater District New lease 25 620 Sixth Ave. 212,937 2nd WeWork Cushman & Wake eld RXR Realty RXR Realty Chelsea New lease Continued on page 14 12 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 17, 2020

P012_CN_20200217.indd 12 2/12/20 6:33 PM AT THE CENTER OF WHAT’S NEXT With 3.6 billion square feet under management, 400 o ces in 70 countries, 2018 revenues of $8.2 billion and 51,000 hardworking innovators, this is where the power of real estate is unleashed on behalf of the world’s top owners and occupiers.

OCCUPIER SERVICES INVESTOR SERVICES INDUSTRY AND SPECIALTY ADVISORY GROUPS AGENCY LEASING INTEGRATED FACILITIES MANAGEMENT ASSET SERVICES PORTFOLIO ADMINISTRATION CORPORATE CAPITAL MARKETS & INVESTMENT SALES PROJECT & DEVELOPMENT SERVICES EQUITY, DEBT & STRUCTURED FINANCE TRANSACTION MANAGEMENT PROJECT & DEVELOPMENT SERVICES STRATEGIC CONSULTING STRATEGIC ADVISORY GROUP TENANT REPRESENTATION VALUATION & ADVISORY

cushmanwakeﬁ eld.com

CN019589.indd 1 2/11/20 1:34 PM THE LIST

TOP MANHATTAN OFFICE LEASES

TECH DESCENT #4 Tech gobbled up an additional 15% of the Manhattan of ce lease market in 2019, Publicis Groupe stealing share away from the nancial, insurance and real estate sectors. expanded its ■ Financial, insurance ■ Tech, media, advertising ■ Professional services ■ Other footprint at 375 98 and real estate and information Hudson St. by 41%. NUMBER of 2019 Manhattan of ce 2018 transactions with base rents of at least 50% 18% 12% 20% $100 per square foot, the largest total in the decade 2019

35% 34% 13% 18% BUCK ENNIS BUCK

#3 ASKING FOR THE MOON Facebook has Overall, Manhattan asking rents nearly doubled in the course of the decade, with the largest arranged for nearly increases coming in lower Manhattan. % half the space at $80 50 Hudson Yards. 52 PORTION of of ce $70 leases for new and $80 renovated spaces last year, 11 percentage $60 points higher than 2018’s rate

$50

$40 SOURCE: CBRE

COURTESY OF THE RELATED COS. RELATED THE OF COURTESY ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19

SQUARE TENANT LANDLORD(S)/ LANDLORD/SUBLANDLORD ADDRESS FEET QUARTER TENANT REPRESENTATIVE SUBLANDLORD(S) REPRESENTATIVE(S) NEIGHBORHOOD DEAL TYPE 26 200 Liberty St. 208,022 2nd Financial Industry Regulatory Cushman & Wake eld Brook eld Asset Management Brook eld Of ce Properties Battery Park City Renewal Authority 27 555 W. 57th St. 204,782 4th BMW JLL SL Green Realty Corp. SL Green Realty Corp. Lincoln Square Renewal 28 199 Water St. 201,231 1st WeWork Direct deal Jack Resnick & Sons Jack Resnick & Sons/ Financial District New lease Cushman & Wake eld 29 410 10th Ave. 189,260 2nd First Republic Bank JLL Kaufman Organization Newmark Knight Frank Far West Side New lease 30 66 Hudson Blvd. 189,226 2nd AllianceBernstein Newmark Knight Frank Tishman Speyer Tishman Speyer Far West Side New lease 31 399 Park Ave. 175,000 1st Moelis Cushman & Wake eld Boston Properties Boston Properties Midtown East Renewal/ expansion 32 57 11th Ave. 170,421 2nd Google CBRE RXR Realty RXR Realty Chelsea New lease 33 63 Madison Ave. 162,291 2nd CBS Cushman & Wake eld Loeb Partners Realty George Comfort & Sons NoMad Renewal 34 1 Hudson Square 161,044 3rd Oscar Health Newmark Knight Frank Trinity Real Estate/Norges Bank Newmark Knight Frank Hudson Square Renewal/ expansion 35 110 E. 59th St. 151,980 4th Cantor Fitzgerald Newmark Knight Frank Jack Resnick & Sons Jack Resnick & Sons Midtown East Renewal 36 200 Park Ave. 144,451 1st Hunton Andrews Kurth JLL Irvine Co. Of ce Properties Tishman Speyer Midtown East Renewal 37 330 Madison Ave. 143,135 4th JLL JLL Abu Dhabi Investment Authority JLL Midtown East Renewal/ expansion 38 61 Ninth Ave. 142,342 2nd Yext Newmark Knight Frank Vornado Realty Trust Newmark Knight Frank Chelsea New lease 39 245 Park Ave. 138,264 4th Angelo, Gordon & Co. Newmark Knight Frank SL Green Realty Corp. Cushman & Wake eld Midtown East Renewal/ expansion 40 55 Water St. 130,449 2nd District Council 37 MHP Real Estate Retirement Systems of Alabama Cresa Financial District New lease Services 41 50 Rockefeller Plaza 125,097 4th Katten Muchin Rosenman Cushman & Wake eld Tishman Speyer Tishman Speyer Midtown West New lease 42 733 Third Ave. 124,554 3rd EisnerAmper Newmark Knight Frank The Durst Organization The Durst Organization Turtle Bay New lease 43 1250 Broadway 124,101 1st TransPerfect CBRE Global Holdings Management JLL Koreatown New lease 44 1114 Sixth Ave. 122,606 2nd Israel Discount Bank of New York Newmark Knight Frank Brook eld Asset Management CBRE/Brook eld Of ce Midtown West New lease Properties Inc. 45 425 Park Ave. 120,400 1st Citadel Enterprise Americas JLL L&L Holding Co. L&L Holding Co. Midtown East New lease 46 350 Fifth Ave. 119,226 1st FDIC Direct deal Empire State Realty Trust JLL/Empire State Realty Trust Koreatown Renewal 47 641 Lexington Ave. 112,894 1st New York State Homes & Newmark Knight Frank Rudin Management Rudin Management Midtown East Renewal Community 48 50 Rockefeller Plaza 110,742 4th Citrin Cooperman CBRE Tishman Speyer Tishman Speyer Midtown West New lease 49 30 Rockefeller Plaza 109,572 1st Sheppard, Mullin, Richter & CBRE Tishman Speyer CBRE Midtown West Renewal/ Hampton expansion 50 1540 Broadway 109,296 4th Adobe Colliers International Edge Fund Advisors CBRE Theater District Renewal/ expansion

SOURCE: CoStar Group, with additional research by Gerald Schifman. CoStar conducts extensive research to produce and maintain a database of commercial real estate information. This list includes leases with terms of more than two years.

14 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 17, 2020

P014_CN_20200217.indd 14 2/12/20 6:39 PM Inspire. Engage. Amenitize.

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CN019590.indd 1 2/11/20 1:35 PM WHO OWNS THE BLOCK

Prospect Lefferts Gardens high-rise draws 123 LINDEN BLVD. tenants with Manhattan-style amenities The tower has attracted residents from nearby Kings County Hospital

BY TOM ACITELLI 123 LINDEN BLVD. t 26 stories and 318 feet, the recently opened apartment Tenants started moving in De- tower at 123 Linden Blvd. cember at the 26-story, 467-unit looms large over its slice of tower that the Moinian Group 143 LINDEN BLVD. Brooklyn. Few buildings in the area and Bushburg Properties built. A Pinnacle Group, the Man- make it much past 7 stories—and start- Bushburg, led by Solomon Feder ing on 123 Linden’s eighth oor, resi- and Israel Nieman, acquired what hattan-based landlord dents can see clearly to Manhattan. was then a former nursing home and developer led by CEO e tower, dubbed PLG, is one of the for $18.5 million in February Joel Saul Wiener, got this pricier new developments in the Pros- 2016 and brought on Moinian 6-story, 53-unit apartment pect Leerts Gardens-Flatbush border- later, reportedly in exchange for building for $4.1. million lands. Starting rents, accounting for a up to $160 million in nancing. in November 2005. three-month-free discount, are $2,126 for studios, $2,667 for one-bed- 200 LINDEN BLVD. room units, $3,495 for two-bedroom units and $4,518 for 95 LINDEN BLVD. Construction wrapped in 2016 on three-bedroom units. this 8-story, 69-unit apartment High as they might seem, Akelius Real Estate Man- building. An LLC associated with these rents are generally less ex- agement, the U.S. arm investor and developer Barry Far- pensive than those farther west of a Swedish investment kas of Brooklyn acquired the site in Brooklyn, in enclaves such as house, acquired this 6– with three low-rise houses for $6 Park Slope, Williams- story, 120-unit apartment million in February 2015. burg-Greenpoint and Prospect building for $45.1 million Heights. e median rent in the in August 2015. Akelius borough was $2,991 in Decem- also acquired Nos. 40 ber, appraiser Miller Samuel and 58 Linden in separate found. deals at the same time. PLG, moreover, has an amenities package unique for the im- mediate vicinity. It includes two pools, a tness center, a coworking lounge and concierge services. Move-ins started in December, and leasing started a couple of months ear- 212 LINDEN BLVD. lier. At least a few dozen apartments are The 8-story, 23-unit apartment spoken for, said Jacob Entel, director of building was nished in 2018. residential properties for the Moinian An LLC associated with Brook- Group, which developed the tower lyn-based Brodmore Ventures ac- with Bushburg Properties. quired the site of the building—a Entel said the tower has drawn many house—for $2.2 million in Sep- tenants from Brooklyn. Some want to be near the SUNY Downstate Medical tember 2015. Center-Kings County Hospital, a few blocks to the northeast, he said, while others want to be near Prospect Park to the northwest. “We’re seeing a lot of people come from within the neighborhood— areas like Park Slope, where it’s 188 LINDEN BLVD. still pricier, but a lot of the prod- 88-92 LINDEN BLVD. uct is old,” Entel said. A group of investors through an Newer residential buildings in Brookland Capital, a proli c invest- LLC based in East Midwood, the area, although not nearly as ment and development rm based Brooklyn, acquired this 4-story, tall, include 200 Linden Blvd.— in Brooklyn and led by Boaz Gilad, 35-unit apartment building for where active listings start at is building a 9-story, 68-unit condo $4.7 million in April 2015. more than $2,100 a month for on this site. The company acquired one-bedroom units, according to the site, which included houses and Streeteasy—and 88-92 Linden, a a garage, for $6.5 million in 2015. condo project under construc- Brookland was silent regarding when tion that hasn’t started sales. the project, which is under construction, might be completed. ese fresher projects are 162 LINDEN BLVD. changing the streetscape of where Flatbush meets the Pros- In an illustration of what smaller pect Park orbit. apartment buildings along the Lin- e buildings at 88-92 Linden and den corridor go for, an LLC associ- 148 AND 158 LINDEN BLVD. 200 Linden, for instance, replaced ated with private investors acquired structures that included low-rise sin- An LLC associated with Brook– this 4-story, six-unit building for just gle-family houses; 123 Linden itself re- lyn-based Deergrow Development over $1 million in July 2011. placed a 4-story nursing home. ■ acquired these two 4-story buildings containing 40 apartments for $8 million in February 2018. BUCK ENNIS, GOOGLE MAPS BUCK ENNIS,

16 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 17, 2020

P016_CN_20200217.indd 16 2/13/20 11:37 AM ARTS & CULTURE Transforming the city’s economy one show at a time Charlotte St. Martin Broadway League

INTERVIEWED BY MIRIAM KREINAN SOUCCAR he past decade has been one prolonged standing ovation for the Great White Way. Both gross ticket sales and attendance have broken Broadway records every season since 2009—except one, Twhen attendance dipped because of an unusual number of snowstorms. Last season attendance hit 14.8 million, and ticket sales came in at $1.8 billion. Charlotte St. Martin, head of the trade organization the Broadway League since 2006, presides over all of it. She will share her insights at Crain’s Business of Broadway breakfast March 19.

How has Broadway changed since you began at the Broadway League? We have a much wider variety of shows, which is changing the demographics of Broadway. In the last two seasons, 3 million of the attendees were under 18 years of age. When I moved to New York in 1995, there were almost no shows for people under 25. Disney had just opened Beauty and the Beast. Today we have three Disney shows and Wicked, Beetlejuice, Mean Girls and Harry Potter, just to name a few. We also have changes in ethnicity. The Latino audience is growing, and we’re working on all other segments of the business.

Is there anything else contributing to its appeal?

Broadway has become part of pop culture. The Hamilton season BUCK ENNIS gave us a real shot in the arm because it got national and international press and created interest around the world. And What are you most looking forward to seeing being a woman. And West Side Story, which is a there are more kinds of shows than there ever have been. There this spring? completely different West Side Story, much like really is something for everyone. I love all my children, but I do love the big musical. Oklahoma! was last season. I see 100 nights of I’m looking forward to seeing Company, with Bobby theater a year. ■ It seems as though there are so “BROADWAY many headaches for producers. What is the biggest challenge HAS BECOME they face today? It’s the rising costs. We have the highest-paid theatrical employees A PART in the world. The costs are a third higher than in London. And OF POP technology has become so much more expensive. Shows are expected CULT URE” to use more “wow” aspects, and that’s expensive. Marketing also has changed dramatically. Now you have to market to so many different generations of audiences, so you need to do that in different ways.

What do you say to those who complain about rising ticket prices? People love to talk about our theater ticket prices. But only 3% to 5% of our tickets are premium tickets. Half of our tickets are under $100. It’s not just about premium pricing. It’s about dynamic pricing. You may charge more for an aisle seat in the orchestra. But that might allow you to charge less for a mezzanine seat.

There’s a theater shortage now. Should or will developers build more theaters? The cost to build theaters is dramatic. The costs don’t nancially work. Even with the Broadway boom, the cost to do these shows is so dramatic that you can ll the house and still barely have money left over to cover running costs and pay your investors.

How has New York City’s tourism boom contributed? Sixty percent to 70% of our theatergoers are from outside the tristate area. It’s signi cant. Another positive factor is the growth in international business. Those tourists come for longer, so they see more shows.

What are some of the new initiatives you have started at the Broadway League? We started Viva Broadway, an audience-development program to enhance Latino attendance. Broadway Bridges, an educational program that just nished its third year, allows every New York City high school student to see a show before graduation for $10. That will help with our continuing efforts to build audiences.

FEBRUARY 17, 2020 | CRAIN’S NEW YORK BUSINESS | 17

P017_CN_20200217.indd 17 2/13/20 4:38 PM chaotic street scene. ey are, how- VENDORS ever, o ering quali ed support for a FROM PAGE 1 City Council bill that would add 4,000 vendors over a decade—the Trader Joe’s, e-commerce gro- rst increase in nearly 40 years— cers Amazon Fresh and Fresh Di- and create a law-enforcement unit rect, and even drugstores CVS, Wal- dedicated exclusively to vending greens and Rite-Aid, as they add legislation. groceries to their shelves. Currently that job falls to the po- But D’Agostino, who now pre- lice, who are overstretched, not al- sides over a shrunken empire of ways conversant in the ne print of Gristedes and D’Agostino stores, the laws and, depending on whom sees an additional competitor— you ask, overzealous or not zealous one he thinks has an unfair advan- enough. tage—eating away at his bottom “Right now what we’re looking line: fruit-and-vegetable street ven- for is to nd somebody who can en- dors, who often set up shop not far force the laws,” D’Agostino said. from supermarket doors. “I’ve been told by the police, ‘If the ere are roughly 3,000 licensed guy isn’t bothering anybody, it’s street vendors in New York; 376 of hard for us to enforce the law.’ ” them sell fresh fruit and vegetables He is not happy about an in- from their carts, according to the crease in the number of vendors. city’s Health Department, which e bill would provide what are oversees the sector. called supervisory licenses, costing Advocates say the vendors are $400 a year, with existing vendors hardworking immigrants whose getting a head start on the line. Un- like with current permits, the new impact on supermarket sales is A FRUIT VENDOR license holders would be required wildly overblown. For many shop- operates near a to work the carts themselves. ( e pers they represent convenience— Chelsea Gristedes bill also would allow vendors in the no standing in line at the cash regis- location

ter—and bargain prices. e Green Carts program to add nuts BUCK ENNIS vendors themselves say they are and bottled water to their fresh-pro- just trying to scrape by without run- duce selection. Begun under the Manhattan, where businesses be- “It’s a misconception that ven- mobile vendor’s license, as re- ning afoul of often-confusing regu- Bloomberg administration, Green low 96th Street with rent above dors are the Wild West and there’s quired, and was paid a salary by the lations. Carts are restricted to so-called $250,000 a year must pay a 3.9% no oversight,” said Matthew Shap- business’s owner, who provided the But to embattled supermarket food deserts in northern Manhat- commercial rent tax. In 2013, when iro, legal director of the Street Ven- permits. owners, they threaten store pro ts tan and parts of the outer bor- Food Trade News started counting dor Project. e Health Department agreed and hundreds of union jobs. oughs.) New York stores, there were 30 Some experts say it’s also import- that Das was doing nothing wrong. “To the public, street vendors Gristedes and 13 D’Agostino loca- ant to consider the public health A street vendor advisory board, look like they’re small businesses, Daily battle tions in Manhattan. e two com- role vendors play. which would be established as part but in many cases they’re starting Advocates say supermarket op- panies, which combined opera- “You have to think about a need of the City Council bill, might rec- to outsell us,” D’Agostino said. erators’ fears of more street ven- tions in 2016—and are kept alive by for a variety of price levels for ommend changes in the rules. But “ ey get free rent. And I’m having dors are misplaced. pro ts from owner John Catsima- healthy food,” said Nevin Cohen, it’s likely that neither the board nor “ ey are wor- tidis’ other businesses—now have research director of the CUNY Ur- the dedicated enforcement unit ried that all the new just 30 stores between them in the ban Food Policy Institute, which would be able to help vendors with permits will be- borough, D’Agostino said. supports nutrition and health equi- another important issue: the dis- come fruit-and-veg- Morton Williams has opened two ty. at is “one of the things mobile tance vendors must keep from a etable carts,” said stores in Manhattan in the past two vending allows.” store entrance. Mohamed Attia, di- years, for a total of 14 in Manhattan. In addition, he points out, there e City Council bill would re- rector of the advo- But the company recently closed a are many reasons people shop at quire a vendor to stay at least 20 feet cacy group the store in the Bronx and has no plans some stores and not others. away, a rule based on safety con- Street Vendor Proj- to open any more in Manhattan, “If you look at the number of cerns. Representatives of super- ect. “We expect very Kaner said, despite o ers from stores that people skip before they market and bodega owners have few will be. Out of landlords of new developments go to the one where they shop, it’s been asking the bill’s sponsors, the 3,000 permits who would like to have a supermar- two, three, four stores,” Cohen said. Margaret Chin and Carlos Mencha- out there now, a ket as an amenity. He added that neighborhood su- ca, for a 500-foot bu er, the same very small portion He says the combination of regu- permarkets are important to the two-block distance a bar must keep are fruit-and-vege- lations—notably the ban on plastic overall shopping environment, but from a liquor store. But people table carts.” bags that will go into e ect in he said he does not believe that working on the legislation say any Both D’Agostino March—higher costs and greater vendors are the source of their amount beyond 20 feet would be and Avi Kaner, a competition have made the pros- problems. considered anti-competitive and co-owner of Mor- pect too daunting. And vendors Discussions with a vendor and would not hold up legally. ton Williams Super- cutting into produce sales hit su- his customers on a recent morning As sympathetic as City Council markets, say there permarkets in a particularly vulner- showed that, at least in some cases, members are to supermarkets, they

BUCK ENNIS are already too able spot. the relationship between one street say street vendors are not the prob- many. ey de- “ e pro t margins on fresh pro- stall’s gains and a supermarket’s lem—or even the straw breaking “IF THE PEDDLER SELLS scribe a daily battle duce can range from 38% to 55%, losses is, indeed, not always clear their back. with vendors, some and they’re the most pro table part cut. “ e real straw here is the larger, $2,000 A DAY, THAT COMES of whom operate of any store,” said Burt Flickinger, a “His prices are a ordable, and structural conditions,” Menchaca out of trucks that longtime supermarket consultant the fruits are fresh,” said Myra, a said. He cited “people getting deliv- OUT OF OUR STORES” stay parked all day who is managing director of Man- shopper who stopped to buy ba- eries from Amazon and Whole in the supermar- hattan-based Strategic Resource nanas, plantains and lemons from a Foods and the increases in rent and to re people in my produce de- ket’s loading zone, blocking trucks Group. “ e fruit stand is getting vendor on the corner of West 24th taxes” as major problems. partment.” making deliveries. ey add that the bene t of the best location with Street and Eighth Avenue, one He and Chin, along with Manhat- Store owners are especially pre- even without interfering with store the highest customer counts, which block from a Gristedes. She said the tan Borough President Gale Brewer, occupied with street vendors right operations, the vendors can siphon are always in front of grocery stores. vendor—who operates two carts are supporting a bill to exempt af- now because of two bills that would o dollars that are critical to a And it’s paying next to nothing on side by side—wasn’t taking her sale fordable supermarkets from the change how they are regulated. store’s pro t margin, which can be top of a site where operators typi- away from the nearby store. She did commercial rent tax. Kaner said Both aim to address the black mar- as little as 1% of sales. cally pay union-scale wages plus the bulk of her shopping at a super- that would save him more than ket that has sprung up in response “If the peddler sells $2,000 a day bene ts,” in addition to rent. market on Ninth Avenue and West $700,000 a year. to the limit on vendor permits, [worth of groceries], that’s $2,000 a Vendors, however, insist their 28th Street that was farther from One person who could almost which cost $200 for two years but day that comes out of our stores,” 5-foot-by-10-foot carts o er scant her home but lower-priced. de nitely bene t from the street are illegally rented out for as much Kaner said. “It hurts the neighbor- competition for 10,000-square-foot vendor bill would be Das, who says as $20,000 for that period. hood stores more. If there’s a Whole supermarkets. And their advocates Lack of clarity he has been operating the fresh Not surprisingly, supermarkets, Foods store with a peddler outside, argue that they have the same costs e rules governing street carts produce stall on the West 24th along with bodega owners who are it doesn’t a ect them as much, be- as any small business, including are not entirely clear, some say. Street corner for about 10 years, part of a healthy-foods initiative, cause of their high [sales] volume. rent for where their carts are stored, D’Agostino said that operating two making a salary of around $120 a oppose a bill sponsored by Sen. Jes- But it’s devastating to the smaller employee wages and workers’ com- carts side by side, when there is a day while selling $2,000 worth of sica Ramos that would lift the cap stores.” pensation payments. ey also fol- 10-foot limit on a cart’s size, is ille- fruits and vegetables daily. on the number of vendors across Kaner and D’Agostino see neigh- low the same health code regula- gal. But the vendor, Palash Das, a “I don’t have a permit,” Das said. the state. Store operators argue that borhood stores engaged in a life- tions as other food-service Bangladeshi immigrant, said each “You give me a permit, then I start the bill would add to an already and-death struggle, particularly in establishments. cart had its own permit. He had a business.” ■

18 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 17, 2020

P018_CN_20200217.indd 18 2/12/20 6:16 PM “ ere is no reason New York CYBER shouldn’t be the world capital for FROM PAGE 3 cybersecurity because this is where the biggest customers are,” said only because the massive breach at James Patchett, chief executive of Marriott in 2018 exposed 383 mil- the New York City Economic Devel- lion records. In 2017 Equifax re- opment Corp. vealed the personal information of To help make that happen, the 147 million people. city has invested $30 million in the IBM says it typically takes 279 Cyber NYC initiative. An additional days—nine months—for U.S. com- $70 million has been committed by panies to identify and contain Margalit’s Jerusalem Venture Part- hacks. Mitigating the damage, noti- ners, along with banks, accounting fying customers and weathering rms and local universities to help the public relations hit costs mil- with training and job placement. lions. “For every hack you hear about,” Booting up THE NEW said venture capital investor Erel On Feb. 3 de Blasio administra- YORK Cyber Margalit, “there are 10 you don’t.” tion o cials descended upon Mar- Center booted Meanwhile, the hacker wars are galit’s SoHo o ce to open the New up downtown intensifying amid growing concern York Cyber Center, from which Feb. 3. that elections may be vulnerable. startups will have the chance to

For sure, Je Bezos isn’t immune build better cybermousetraps. e BUCK ENNIS to hacking. Recent reports suggest optimistic vibe was captured by malware was implanted onto the Gwyneth Paltrow, who attended ing as a cybersecurity engineer for a from online break-ins, he works commercializing the communica- Amazon chief’s iPhone through and recalled a rabbi once telling her Queens-based bank. mostly alone in a Long Island of- tions technologies that originated WhatsApp in May 2018. that good deeds done in Jerusalem Data security was a new world for ce, patching vulnerabilities in the inside Israel’s defense and intelli- Opportunity is knocking for Mar- can be “ampli ed across the world.” Ahmed, who majored in biochem- bank’s computer systems and ex- gence networks. Margalit was im- galit, the founding gure of Israeli Maybe so, but what is clear is that istry at Hunter College and planned amining suspicious IP addresses. pressed with how the Church of there is a great need a career in the sciences. But during “Tier 1 incidents can be handled Latter Day Saints turned Salt Lake for assistance in the an internship at a local hospital, he by the help desk. Tier 2 come to City into a center for software and “FOR EVERY HACK YOU HEAR never-ending battle witnessed the damage caused by me,” explained Ahmed, who works biotech. with hackers. In a identity theft and resolved to dedi- 11-hour days. “ ey’re a large cate- “I said to the mayor, ‘Look at the ABOUT, THERE ARE 10 survey of 400 com- cate himself to protecting every- gory.” Mormons. ey’re spiritual people panies by Tech:NYC one’s personal data. like us Jews, and what they did we YOU DON’T” last year, 63% said At the cyber boot camp Fullstack Hack work should do,’ ” he said. “Kollek gave they would priori- Academy, he mastered the e city hopes its investment in me a job in economic develop- tize hiring cyberse- computer-programming language cultivating cybersecurity jobs here ment.” venture capital who during his 25- curity experts this year above other Linux and learned to use the tools will more than double headcount. Margalit raised $20 million from year career has backed 140 tech kinds of tech employees. of the cybersecurity specialist’s New York is already home to 8,200 American investors, who got 13.5 companies, including a dozen list- To help address the shortage of trade, which carry names such as information-security analysts, who times their money back. He has ed on Nasdaq. Now he has set up quali ed workers, the city has Wireshark and Metasploit. earn an average wage of $128,420, since raised $1.4 billion across eight shop in SoHo. He reckons a loca- opened the Global Cyber Center in “ e only thing I knew about according to the U.S. Department funds and aims to replicate that tion in the world’s nancial capital Chelsea, where fresh recruits are computers before was how to turn of Labor. success in New York. will help his stable of cyberentre- given 17 weeks of intensive training one on,” Ahmed said. “I want peo- To Margalit, the opportunity in All well and good, but can he preneurs win meetings and busi- in cybersecurity and sent into the ple to know anyone can do this, New York reminds him of what he help tackle the modern challenge ness. City o cials hope his pres- eld. ey include Farhad Ahmed, even if it seems intimidating at saw some 30 years ago, when he of keeping hackers away from the ence will turn New York into a a 24-year-old Jackson Heights resi- r s t .” pitched the mayor of Jerusalem, next presidential election? cybersecurity hub. dent who last month started work- To protect customers’ money Teddy Kollek, on developing and “Yes!” he said. “Probably.” ■

EXCLUSIVE Housing Authority lands $1.5B deal More than 6,000 units will be turned over to developers, including Hudson Cos.

BY DANIEL GEIGER 2,625 units in nine public housing through the steep learning curve. NYCHA hopes to buildings in Brooklyn that will raise As long as we keep forming good privatize 62,000 he New York City Public $350 million for the repair of those partnerships, we will hit this tar- apartments by Housing Authority has properties. g e t .” 2028. struck an agreement to NYCHA also said it will soon RAD is a federal program that bring nearly 6,000 apart- close on the conversion of a bundle converts subsidies for a public Tments in Manhattan and Brooklyn of 1,718 units in Manhattan it is housing complex over to Section 8 under private management in a placing under private management. funding, a stream of government deal that will raise over $1.5 billion money that can be used to raise a for repairs, the agency told Crain’s Totally RAD lump sum of upfront cash from the last week. NYCHA has previously stated that municipal bond market to make

NYCHA has selected several de- it is aiming to place about 62,000 repairs. e deals are structured so AP IMAGES velopers, including major a ord- public housing units under private that developers lease the NYCHA able housing builders L+M Devel- management by the end of 2028, in properties they manage, with the es and Harlem River Houses 1 and 2 as well to help them grow,” said Rick opment Partners and Hudson large part using the federal govern- public housing agency remaining in Harlem. e development teams Gropper, a principal at Camber Companies, to repair and take over ment’s rental assistance demon- on as a partner and the underlying selected, include L+M Develop- Property Group, which won a pro- management of ve complexes, stration program, known as RAD. owner of the property. Residents ment, Hudson Companies, Settle- curement over a year ago to manage which, like much of the rest of the Since embracing the RAD program continue to pay the same rents, ment Housing Fund and others. e and make $100 million of repairs in agency’s portfolio of roughly about three years ago, NYCHA has which are set at 30% of a resident’s deal also features newer players as two NYCHA complexes in the Bronx 176,000 apartments, have su ered proceeded slowly, converting only income. well, including a partnership be- in partnership with L+M Develop- from disrepair and deteriorating about 7,700 units and raising con- e conversions are part of the tween Dantes Partners, Apex Build- ment. “ ese are rms that might conditions. cerns whether it will be able to city’s NYCHA 2.0 turnaround plan, ers and Webb & Brooker, which will not have been in the mix in the past e deal is the largest single pack- meet its target. which also seeks to raise additional handle the conversion of the 558 but, if they get to scale, can really age of conversions yet undertaken “I do believe it’s possible to hit billions of dollars for the belea- units in Audubon Houses. NYCHA begin to help address the public by the agency and the single biggest that target and my goal is to accel- guered agency by developing has been trying to groom smaller af- housing crisis.” infusion of funds from a privatiza- erate our pace of conversions,” said housing on vacant parcels of NY- fordable housing developers to par- NYCHA has estimated that its tion deal, re ecting a much-needed Jonathan Gouveia, the head of NY- CHA-owned land and selling o ticipate in RAD and similar pro- portfolio, the largest collection of acceleration of its plans to raise cap- CHA’s real estate development unused development rights. grams in order to grow capacity in public housing buildings in the ital and bring in management from team, which is overseeing the Included in the deal to convert the private market and increase the country, needs over $40 billion of the private sector. On ursday, the agency’s RAD conversions. “I have the 5,902 units are Linden Houses pipeline of conversions. repairs. It hopes to raise over $20 agency also announced that it had been impressed because these are and Boulevard Houses in East New “NYCHA is working with larger billion from private partnerships, closed on a previously-announced complicated deals and we have York, Williamsburg Houses in East developers but it’s de nitely trying the bulk of that from RAD conver- deal to privatize management of found private partners willing to go Williamsburg, and Audubon Hous- to do deals with the smaller players sions. ■

FEBRUARY 17, 2020 | CRAIN’S NEW YORK BUSINESS | 19

P019_CN_20200217.indd 19 2/14/20 2:09 PM PUBLIC & LEGAL NOTICES Advertising Section CLASSIFIEDS To place a classified ad, Call 212-210-0189 or Email: [email protected]

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Notice of Formation of M.W. WELLET NOTICE OF FORMATION of Sarah’s Notice of Qualification of RPI GP NOTICE OF FORMATION OF The HiRise Bldg. Rep. LLC Arts. of Org. filed with Secy. of Wine 65 LLC. Arts of Org filed with 2019, LP Appl. for Auth. filed with Schaffer Cella Team, LLC. Articles of • Due Diligence State of NY (SSNY) on 12/26/19. Of- Secy. of State of NY (SSNY) on 10/ Secy. of State of NY (SSNY) on Organization filed with the Secretary • Consulting Engineers fice location: NY County. SSNY desig- 24/2019. Office Location: NY County. 01/16/20. Office location: NY of State of NY (SSNY) on 12/ • Replace Verticle Fancoil Units nated as agent of LLC upon whom SSNY designated agent upon whom County. LP formed in Delaware (DE) 18/2019. Office location: NEW YORK process against it may be served. with Water Source Heat Pumps process may be served and shall mail on 09/20/19. Duration of LP is County. SSNY has been designated SSNY shall mail process to the LLC, copy of process against LLC to 326 Perpetual. SSNY designated as agent as agent upon whom process against hface172@gmail • 212-684-3911 7 Pleasant Hill Rd., Cranbury, NJ East 65th Street, New York, NY of LP upon whom process against it it may be served. The Post Office ad- 08512. Purpose: Any lawful activity. 10065. Purpose: any lawful act. may be served. SSNY shall mail proc- dress to which the SSNY shall mail a ess to c/o RPI GP Holdco 2019, LLC, copy of any process against the LLC Investment Analyst (Falcon Edge Cap- 110 E. 59th St., 33rd Fl., NY, NY served upon him/her is: 220 W 42nd Notice of Formation of a Limited Liabil- Notice of Formation of ROSEMARY 10022. Name and addr. of each gen- Street, 22nd Floor, New York, NY ital, LP – New York, NY) Positns open HALLGARTEN NEW YORK, LLC IRU,QYHVWPHQW$QDO\VW3UIUPÀQDQFO ity Company (LLC). The name of the eral partner are available from SSNY. 10036. The principal business ad- LLC is: JES JEWELERS, LLC. Articles Arts. of Org. filed with Secy. of State DE addr. of LP: c/o Corporation Serv- dress of the LLC is: 220 W 42nd rsrch & anlysis & prtcpat in slctn, proposl of Organization were filed with the of NY (SSNY) on 01/29/20. Office lo- ice Co., 251 Little Falls Dr., Wilming- Street, 22nd Floor, New York, NY PRQWU·JRIHTXLW\LQYVWPQWRSSUWQWV Secretary of State of New York cation: NY County. SSNY designated ton, DE 19808. Cert. of LP filed with 10036. Purpose: any lawful act or ac- )75HTV%DFK·VGHJ RUIUJQHTXLY LQ (SSNY) office on: 08/12/2019. The as agent of LLC upon whom process Secy. of State of DE, Dept. of State, tivity )LQDQFH(FRQ&RPPUF%XV$FFWJ County in which the Office is to be lo- against it may be served. SSNY shall Div. of Corps., John Townsend Bldg., cated: New York . The SSNY is desig- mail process to the LLC, 116 Sher- Dover, DE 19901. Purpose: Any law- 0DWK6WDWRUUHOÁG \UVH[SLQMRERI- man St., Fairfield, CT 06824. Pur- KAPARAI LLC, Arts. of Org. filed with IUGRUZÀQDQFOUVUFK DQO\VLV$OOVWDWG nated as agent of the LLC upon whom ful activity. process against it may be served. The pose: Any lawful activity. the SSNY on 01/23/2020. Office H[SPXVWLQFODQDO\]·JÀQDQFOVWDWPQWV address to which the SSNY shall mail loc: NY County. SSNY has been designated as agent upon whom process UHJXOWU\ÀO·JVRIFPSQVÀQDQFOPGO·J a copy of any process against the LLC Notice of Formation of Dietrich Archi- Notice of Qualification of The Noble against the LLC may be served. SSNY LQ06([FHOYDOXDWQWFKQTVLQFOWUDG·J is: 15 West 47th Street, Room 501, tecture, PLLC. Arts. Of Org filed with Law Firm, PLLC. Authority filed with shall mail process to: The LLC, C/O FRPSDUDEOHVDQDO\VLVGVFQWGFDVKÁRZ New York, NY 10036. Purpose: any Secy. Of State on NY (SSNY) on 11/ Secy. of State of NY (SSNY) on 10/ Academy, 571 Academy Street, Suite lawful activity. 1/19. Office location: NY County. DQDO\VLV VXPRIWKHSDUWVDQDO\VLV 18/19. Office loc: NY County. PLLC GLE, NY, NY 10034. Purpose: Any SSNY designated agent upon whom DFFHV·JÀQDQFOGDWDLQ%ORRPEHUJRU form in NC on 7/7/09. SSNY desig- Lawful Purpose. process may be served and shall mail 6 3&SWO,45HVXPHV)DOFRQ(GJH nated agent upon whom process may Notice of Qualification of copy of process against PLLC to 200 be served & mailed to: Laura Noble, &DSLWDO/3$WWQ0&KR0DGLVRQ VaynerCommerce, LLC Appl. for Auth. West 109th Street, Apt. A3, NY, NY Managing Partner. 141 Providence SHEPHERD ACQUISITIONS LLC, Arts. $YHQXHWK)ORRU1HZ

20 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 17, 2020

P020_P021_CN_20200217.indd 20 2/14/20 12:12 PM PUBLIC & LEGAL NOTICES

NOTICE OF QUALIFICATION of Susan Notice of Qualification of MSG Notice of Qualification of DERMOT NOTICE OF FORMATION Hometown BROADWAY GS LLC. Arts. of Org. filed Alexandra, LLC. Authority filed with SPHERE STUDIOS, LLC VENTURES I, LLC Appl. for Auth. filed Equity Mortgage, LLC. Application for with the SSNY on 12/05/19. Office: Secy. Of State of NY (SSNY) on Appl. for Auth. filed with Secy. of with Secy. of State of NY (SSNY) on Authority filed with the Secretary of New York County. SSNY designated 11/22/19. Office loc: NY County, LLC State of NY (SSNY) on 11/07/19. Of- 12/11/19. Office location: NY Coun- State of New York (SSNY) on January as agent of the LLC upon whom proc- formed in OH on 10/7/15. SSNY desig- fice location: NY County. LLC formed ty. LLC formed in Delaware (DE) on 28, 2020. Office location: NEW ess against it may be served. SSNY nated agent upon whom process may in Delaware (DE) on 10/30/19. Princ. 12/04/19. Princ. office of LLC: 729 YORK County. LLC formed in Missou- shall mail copy of process to the LLC, be served & mailed to: 448 W. Nation- office of LLC: Two Pennsylvania Plaza, Seventh Ave., 15th Fl., NY, NY ri on September 4, 2001. SSNY has c/o Andrew Breslin, Member, 2745 PUBLIC & LEGAL NOTICES wide Blvd #402, Columbus, OH 43215. NY, NY 10121. SSNY designated as 10019. SSNY designated as agent been designated as an agent upon Broadway, New York, NY 10025. Pur- Principal business address: 25 E. agent of LLC upon whom process of LLC upon whom process against it whom process against it may be pose: Any lawful purpose. NOTICE OF FORMATION OF The Broadway, 4th FL, NY, NY 10002. OH against it may be served. SSNY shall may be served. SSNY shall mail served. The Post Office address to address of LLC: 923 E. Broad St., Co- mail process to c/o Corporation Serv- process to c/o Corporation Service which the SSNY shall mail a copy of Notice of Qualification of NOBLE lumbus, OH 43205. Cert. of LLC filed ice Co. (CSC), 80 State St., Albany, Co., 80 State St., Albany, NY 12207- any process against the LLC served PATH LONG ONSHORE LP Appl. for of State of NY (SSNY) on 12/ with Secy. Of State of OH loc: 22 N 4th NY 12207-2543. DE addr. of LLC: c/ 2543. DE addr. of LLC: 251 Little upon him/her is: 28 Liberty Street, Auth. filed with Secy. of State of NY St, Columbus, OH 43215. Purpose: o CSC, 251 Little Falls Dr., Wilming- Falls Dr., Wilmington, DE 19808. New York, NY 10005. The principal (SSNY) on 12/20/19. Office loca- Any lawful activity. ton, DE 19808. Cert. of Form. filed Cert. of Form. filed with Secy. of State business address of the LLC is: 1 tion: NY County. LP formed in Dela- with DE Secy. of State, Div. of Corps., of DE, 401 Federal St., Ste. 4, Dover, Mid Rivers Mall Drive, Suite 130, St. ware (DE) on 12/18/19. Dura- 360 BRANCH RESTORATION SERV- John D. Townsend Bldg., 401 Federal DE 19901. Purpose: Any lawful Peters, MO 63376. Missouri address tion of LP is Perpetual. SSNY desig- ICES LLC, Arts. of Org. filed with the St., Ste. 4, Dover, DE 19901. Pur- activity. of LLC is: 1 Mid Rivers Mall Drive, nated as agent of LP upon whom SSNY on 02/05/2020. Office loc: NY pose: Entertainment. Suite 130, St. Peters, MO 63376. process against it may be served. Certificate of LLC filed with Secretary SSNY shall mail process to the Part- County. SSNY has been designated Notice of Formation of 1253 LEXING- Street, 22nd Floor, New York, NY of State of Missouri located at: 600 nership, 551 Madison Ave., Ste. as agent upon whom process against TON AVE RETAIL LLC. Arts. of Org. 10036. The principal business ad- The Mir Firm PLLCArticles of Organiza- W. Main Street, Room 322, Jefferson 1200, NY, NY 10022. Name and the LLC may be served. SSNY shall filed with Secy. of State of NY (SSNY) dress of the LLC is: 220 W 42nd tion filed with the Secretary of State City, MO 65102. Purpose: any law- addr. of each general partner are mail process to: The LLC, 299 on 11/13/19. Office location: NY Street, 22nd Floor, New York, NY of New York on 10/31/19. Office: ful act or activity available from SSNY. DE addr. of LP: Hackensack Street, East Rutherford, New York County A copy of process County. SSNY designated as agent c/o Corporation Service Co., 251 Lit- NJ 07073. Purpose: Any Lawful Pur- should be mailed to the PLLC at: 40 of LLC upon whom process against it tivity tle Falls Dr., Wilmington, DE 19808. pose. Fulton Street, 23rd Floor, New York, may be served. SSNY shall mail proc- Notice of Qualification of Caithness LI Cert. of LP filed with Secy. of State of NY 10038 Purpose: practice of law ess to: Douglas Gladstone, Esq., Energy Storage LLC Appl. for Auth. DE, Dept. of State, Div. of Corps., Notice of Qualification of SOLOW Goldfarb & Fleece LLP, 560 Lexington filed with Secy. of State of NY (SSNY) John Townsend Bldg., 401 Federal the SSNY on 01/23/2020. Office BUILDING COMPANY III, L.L.C. Ave., NY, NY 10022. Purpose: any on 01/27/20. Office location: NY St., Dover, DE 19901. Purpose: Any Appl. for Auth. filed with Secy. of lawful activities. County. LLC formed in Delaware (DE) lawful activity. State of NY (SSNY) on 01/29/20. Of- Notice of Qualification of ORBIT COLD on 01/16/20. Princ. office of fice location: NY County. LLC formed STORAGE II, LLC Appl. for Auth. filed LLC: c/o Caithness Services LLC, in Delaware (DE) on 01/22/20. Princ. with Secy. of State of NY (SSNY) on NOTICE OF FORMATION OF LIMITED LI- 565 Fifth Ave., 29th Fl., NY, NY Notice of Formation of NUCLEUS office of LLC: 9 W. 57th St., NY, NY 12/23/19. Office location: NY Coun- ABILITY COMPANY. NAME: MAJOR 10017. SSNY designated as agent of MGMT LLC Arts. of Org. filed with GLE, NY, NY 10034. Purpose: Any 10019. SSNY designated as agent of ty. LLC formed in Delaware (DE) on FARM DIRECT, LLC. Articles of Organi- LLC upon whom process against it Secy. of State of NY (SSNY) on Lawful Purpose. LLC upon whom process against it 12/18/19. SSNY designated as zation were filed with the Secretary of may be served. SSNY shall mail proc- 12/12/19. Office location: NY Coun- may be served. SSNY shall mail proc- agent of LLC upon whom process State of New York (SSNY) on 11/ ess to c/o Corporation Service Co. ty. Princ. office of LLC: c/o Novel ess to the LLC at the princ. office of against it may be served. SSNY shall 21/19 office location New York Coun- (CSC), 80 State St., Albany, NY Property Ventures, 27 Union Sq. the LLC. DE addr. of LLC: Corporation mail process to Corporation Service ty. SSNY has been designated as 12207-2543. DE addr. of LLC: c/o West, Ste. 503, NY, NY 10003. of Org. filed with the SSNY on Service Co., 251 Little Falls Dr., Wil- Co., 80 State St., Albany, NY 12207- agent of the LLC upon whom process CSC, 251 Little Falls Dr., Wilmington, SSNY designated as agent of LLC mington, DE 19808. Cert. of Form. 2543. DE addr. of LLC: 251 Little against it may be served. SSNY shall DE 19808. Cert. of Form. filed with upon whom process against it may be filed with DE Secy. of State, Div. of Falls Dr., Wilmington, DE 19808. mail a copy of the process to the LLC, DE Secy. of State, Attn: Authorized Of- served. SSNY shall mail process to Corps., John G. Townsend Bldg., 401 Cert. of Form. filed with DE Secy. of 41 West 28th Street, New York, NY ficer, 401 Federal St., Ste. 2, Dover, the LLC, 27 Union Sq. West, Ste. Federal St., Dover, DE 19901. Pur- State, 40 Federal St., #4, Dover, DE 10001. Purpose: For any lawful pur- DE 19901. Purpose: Investments in 503, NY, NY 10003. Purpose: Any pose: Any lawful activity. 19901. Purpose: Any lawful activity. pose. energy projects. lawful activity. pose.

NOTICE OF FORMATION of 156 FLUSHING NY LLC. Arts. Of Org. on 12/17/09. Office location: NY whom process may be served and NEW HIRE? PROMOTION? Crain’s People on the Move shall mail copy of process against LLC to 156 Flushing Ave. BK, NY showcases industry achievers 11205. Purpose: any lawful act. BOARD APPOINTMENT? and their companies to the New York business community. retary of State New York (SSNY) on 6/24/2019, office location: New For more information, service of process on LLC. SSNY contact Debora Stein at ly project LLC @ 349 Metropolitan [email protected] Ave, Brooklyn, Ny 11211, Purpose: Any lawful purpose. or submit directly to Crainsnewyork.com/people-on-the-move Ask about our 6x and LLC Arts. of Org. filed with Secy. of 13x bulk commitments. of LLC: 160 W 66th St., Apt. 22D, agent of LLC upon whom process ANNOUNCE Advertising Section 2543. Purpose: Any lawful activity. YOUR BIG PEOPLE SUBMIT YOUR BUSINESS ON THE CLASSIFIEDS NEWS MOVE TODAY IN CRAIN’S!

Advertising Section

To place a classified ad, Call 212-210-0189 or Email: [email protected]

FEBRUARY 17, 2020 | CRAIN’S NEW YORK BUSINESS | 21

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Photos from the city’s biggest galas, fundraisers and special events BY CHERYL S. GRANT

Mission of care UJA-Federation of New York held its Wall Street Dinner on Dec. 9. It raised more than $31 million for the organization’s annual campaign to ght poverty and promote Jewish experiences of all kinds. e event was held at the New York Hilton Midtown.

Among the 2,000 attendees were BlackRock’s Robert Kapito, president, and event honoree Barbara Novick, vice chairman and co-founder. Novick, who was the rst female recipient of the Gustave L. Levy Award, was praised as a pioneer in the investment management industry. UJA-FEDERATION OF NEW YORK Honoree Adam Schwartz, co-chief investment o cer and head of real estate at Angelo Gordon, was presented the Alan C. Greenberg Young Leadership Award by Michael Gordon, chief executive o cer of Angelo Gordon.

Protecting In support of kids those at risk GenYouth held its annual fundraising gala Dec. 4, raising nearly $2 Volunteers of America- million to help create healthier Greater New York held its school communities. e theme, 24th annual fundraising gala “Rise by Lifting Others,” embraced Dec. 9. e event brought in the importance and value of $867,000 to support programs mentoring, inspiring, challenging that help struggling families and investing in youth. Among the and provide afterschool more than 500 guests at the gala, programs, counseling and held at the Museum of Natural mentoring. Taking part in the History, were Shelly Ibach, CEO of festivities were Gerry Sleep Number; Arianna Cunningham, chairman of Huf ngton, founder of HuPost; the organization’s board of and Alexis Glick, CEO of directors; Tere Pettitt, GenYouth. president and CEO of the organization; and master of ceremonies Willie Geist, host of NBC’s Sunday Today With Willie Geist.

Angela Goins and her husband, Reginald Goins, president and COO of Pepsi-Cola Bottling Co. of New York, during the event, held at e Plaza GENYOUTH CBS Sports host James Brown ; NFL Commissioner Roger Goodell; Big Ten Commissioner Kevin Warren, an event honoree; and Steven Williams, CEO of PepsiCo

CUPPEK PHOTOGRAPHY Foods North America

SEE MORE OF THIS WEEK’S SNAPS AT CRAINSNEWYORK.COM/SNAPS. GET YOUR GALA IN SNAPS. EMAIL [email protected].

22 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 17, 2020

P022_CN_20200217.indd 22 2/12/20 6:48 PM GOTHAM GIGS

MOLITO has worked for the unions AFSCME, SEIU and TWU. BUCK ENNIS

JUSTIN MOLITO A more perfect union RESIDES Sherman, Conn. EDUCATION Studies toward Labor organizer focuses on precarious digital-media workforce a history degree, Western Connecticut State University BY CAROLINE LEWIS poster on his o ce wall, has spent going public until they have enough “IT’S NECESSARY LABOR LOVE Molito fell in love his entire career organizing workers, support to withstand resistance with labor organizing during a ustin Molito experienced a mo- from home health aides to transit from management, however. TO BE SOMEWHAT college internship at the United ment of panic in 2017 when he and retail employees, in di erent “ at necessitates being under- Food and Commercial Workers learned the billionaire owner of parts of the country. Now he is fo- ground and somewhat secretive at SECRETIVE IN International Union. He decided local news outlets DNAinfo and cused on the younger generation of the beginning of the process, no to quit school in order to be an JGothamist was shutting them media workers, who live online . matter what industry you’re orga- THE BEGINNING, organizer with the union full time. down. e decision came a week af- e push to organize digital out- nizing in,” Molito said. ter the sites’ sta gained the ability lets, many of which are in New York, Unionizing can be dicey, particu- NO MATTER WHAT PARTIAL VICTORY Staff at to collectively bargain as a union. has really taken hold in the past ve larly given the potential for retaliato- Hearst Magazines, which boasts Molito, director of organizing at years, partly thanks to the work of ry layo s, as in the case of Goth- INDUSTRY YOU’RE such titles as Marie Claire and the Writers Guild of America East, Molito’s team of eight. e union amist/DNAinfo. However, WGAE Esquire, voted to join WGAE in worried it would pose a setback for now counts among its members has helped some of the shops it has ORGANIZING” November. Hearst has refused to what was still a burgeoning move- sta at Hu Pos t and Vice Media . unionized achieve gains in pay and voluntarily recognize the union, ment to unionize digital newsrooms e shift began in 2015 with the bene ts through collective bargain- meaning the staff still has to go and win some protections for the unionization of Gawker Media, ing. WGAE’s goal is to organize as through a formal process with the media workforce. But the feeling which has since evolved into G/O much of the news media as it has the National Labor Relations Board. was eeting. Media . “It played out on a blog, and lm and TV industry. WEDDED BLISS Molito met “I was no longer concerned when people were talking about the pros “If we look at our lm and televi- his wife, now a registered nurse, I saw the reaction of the DNAinfo and cons, which is very di erent sion side, the density there is nearly when they worked as organizers and Gothamist sta on the organiz- from how most union-organizing 100%. So people have pensions and for the American Federation of ing committee,” Molito recalled. campaigns transpire,” said Molito, health care and residuals, and can State, County and Municipal “ ey were taking to Twitter and who joined WGAE in 2008. “It was have a middle-class existence and a Employees in the early aughts . [telling other media workers], ‘Don’t nerve-wracking but also encourag- high quality of life,” Molito said. They have an 11-year-old son. let the fact that this happened pre- ing for people to see, and it demysti- “Doing one or two shops here and vent you from organizing.’ ” ed a process that could be unclear.” there in the journalism world will Molito, who has a “99% Occupy” Union campaigns typically avoid not get people to that point.” ■

FEBRUARY 17, 2020 | CRAIN’S NEW YORK BUSINESS | 23

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