TOP STORIES BUSINESS LIVES HATING THE TOUGH LOVE Majestic reinvents Why team-building battered business retreats cause of stock analysis employees to freak out PAGE 2 PAGE 47 ® NY state missing boom in cleantech industries: report VOL. XXIII, NO. 3 WWW.NEWYORKBUSINESS.COM JANUARY 15 -21, 2007 PRICE: $3.00 PAGE 3 Celebrity chef DOWN TIME Colicchio overhauls As newsweeklies lose relevance, ad pages are stagnant. Hospitals woo his much-criticized Craftsteak eatery NEW YORK, NEW YORK, P. 6 docs from rivals Contenders are lining up for state on Berger list comptroller post INSIDER, PAGE 14 several major medical practices in Source: Publishers Information Bureau Physicians at facilities New York City. Bedbug epidemic lindström bekka targeted to close are The state’s Berger commission puts exterminators said in November that nine hospi- eager but cautious; tals statewide should close, as part in growth mode Newsweek on Time: status, perks at stake of a restructuring of 57 health care SMALL BUSINESS, P. 20 systems. Four of the five threat- ened New York City hospitals are We’ll stay the course BY GALE SCOTT going to court to contest the pan- el’s authority, but most doctors REPORT scores of physicians at five New think that the legal challenges will REAL ESTATE In fact, Time’s turning to big- York City hospitals slated for clo- prove futile. Sees rival’s changes name commentators and forward- sure are being aggressively recruit- Meanwhile,the offers are pour- ● Soaring midtown as a boost; stronger looking analysis—not to mention ed by rival facilities. ing in. Dr. Michael Poon, director rents force tenants its move to a Friday publication An increasing number of cardiovascular medicine to flee PAGE 23 Web presence helps date from Monday—may help 74- of doctors,concerned about and integrated imaging at ● year-old Newsweek finally emerge their future at the targeted Cabrini Medical Center, a Bronx becomes BY MATTHEW FLAMM 60 last haven PAGE 23 from its archrival’s shadow. hospitals, are responding NUMBER OF targeted hospital in Man- By maintaining its focus on to the recruitment efforts. PATIENTS an hattan, reports that he’s ● Dubai-based internist admits january has been a busy month news, Newsweek could end up with They’re seeking admitting to the hospital been besieged by recruit- investment firm for Time, which is valiantly at- a near-monopoly on scoops in the privileges and credentials in a year ment efforts. shatters price records tempting to cheat death, or at least category. It can also watch as Time at multiple facilities—a “I’m still here, but I’m PAGE 31 irrelevance,by becoming a new kind endures the heckling that comes clear sign that they want out. weighing a lot of offers,” he says. ● 5 leading brokers of newsmagazine. Which prompts with a public transformation. “The hospitals are fighting “Everybody is banging on my door offer forecasts for the question: Will Newsweek, Perhaps best of all, the casual closing, but the docs are already with jobs. I’m looking at them all.” 2007 PAGE 40 Time’s veritable twin, follow suit? observer will have an easier time leaving,” says Mike LaPenna, a However, moving to other hos- The answer from the No. 2 telling the two publications apart. health care consultant based in pitals can be arduous for physicians, newsweekly: We don’t have to. See NEWSWEEK on Page 8Grand Rapids, Mich., who advises See HOSPITALS on Page 8 AT DEADLINE

VERIZON COMMUNICATIONS’ FASHION VICTIMS PLAN TO START offering television service in the city early in 2007 appears to be in jeopardy.The City Council passed a law allowing the Controversy telecom company to pursue a cable TV franchise three months ago, but the city has on the catwalk not yet released a request for proposals that would allow Verizon to push ahead in its the company’s upcoming runway effort. Verizon and city U.S. industry takes show.The device:a bathroom scale. officials declined to comment. steps to protect “We bought it so we won’t send 87-pound girls down the runway,” THE NEW YORK RED BULLS ARE superthin models; says Bud Konheim, chief executive EXPECTED to announce the at Nicole Miller. Every model who signing of two major inter- is effort effective? visits the office will get on the scale, national soccer players over the and those who are underweight by next few months.The Los BY ELISABETH BUTLER medical standards won’t be allowed Angeles Galaxy’s blockbuster on Nicole Miller’s catwalk. $250 million contract with the nicole miller fashion house “The scale is right in the room, European superstar David just added a new gadget to its cast- so the girls know we’re serious,” See AT DEADLINE on Page 2 ing room to help evaluate the scads Mr. Konheim says. of young models vying for a spot in New York Fashion Week is less than a month away, and industry leaders are under pressure to show that their models aren’t starving. Last week, the Council of Fashion JUST HANGERS: The Designers of America issued issue heated up after guidelines designed to protect the two runway models ELECTRONIC EDITION models. More of the city’s model- died last year from ing agencies are working with di- eating disorders. NEWSPAPER

See CATWALK on Page 8 gettyimages AT DEADLINE

Continued from Page 1 Bank of America as their first Beckham was made possible by presenting sponsor. Last year’s a new Major League Soccer rule event drew 25,000 attendees. that allows teams to exempt one player from the salary cap of $2 MANHATTAN-BASED MUSIC million per team. In November, NATION has raised $5.5 million the Red Bulls wrangled a second in its first round of venture “designated player” slot in a funding.The lead investor was trade with L.A. club Chivas Greylock Partners; Point Judith USA, so the team can now bring Capital also put money into the in two highly paid stars. “It startup. On Monday, Music won’t be someone of Beckham’s Nation will launch a YouTube- stature, but we will make meets-American Idol Web site. announcements shortly,” says Performers will pay $25 to Marc de Grandpre, managing upload their music videos on director of the Red Bulls. www.MusicNation.com for a chance to win a recording ANALYSTS BELIEVE THAT THE contract with Epic Records. REVISED OFFER from the Dolan family to take Cablevision WARM WEATHER HAS MELTED DOUG ATKIN says the Systems Corp. private remains SOME OF MANHATTAN’S ski- data Majestic Research too low. On Friday, Charles and rental business. Paragon Sports, examines is publicly James Dolan, who control the which leases skis to New available but isn’t easy company, said they would pay Yorkers for short trips, has seen for others to obtain. $30 a share, or $8.9 billion, for a “significant” decrease in rentals

the cable TV and entertainment since the record temperatures roger hagadone company.They described the set in after Thanksgiving. bid—$3 per share more than However, Princeton Ski Shops they offered in October—as says it deals only in season-long their “best and final offer” and rentals and has not been said it expires at the close of affected. Research engine business on Wednesday.“Do not let Chuck and Jim Dolan steal NEW YORK SPORTS CLUB SIGNED CVC,” wrote Pali Research A 15-YEAR LEASE at 68 Bradhurst analyst Richard Greenfield. Ave., between West 145th and Majestic reinvents battered business of stock analysis West 146th streets.The 16,200- THE WINTER ANTIQUES SHOW, square-foot gym—the chain’s BY AARON ELSTEIN WHICH STARTS FRIDAY, is second in Harlem—is slated to expanding its offerings in a bid open this summer on the first the cubicles of wall street firms are stuffed with thousands of analysts trying to find the to attract more attendees.The two floors of a 180-unit condo fair will feature a new lecture building. Ripco Real Estate next hot stock. But with so many reading the same press releases, digging through the same series and three additional Corp. represented property financial statements and listening to the same conference calls, it’s tough to get an edge. exhibitors specializing in 20th owners Gotham Organization Majestic Research is changing that. century antiques—bringing the and The Richman Group, and The four-year-old firm is revolutionizing the stock-picking business by using the Internet to number of exhibitors to 75. New York Sports Club Organizers have also signed negotiated on its own behalf. ■ dig up fresh insights on companies. By boiling down enormous amounts of data culled from corporate Web sites and other sources, Majestic’s team of 50 analysts figures out such things as how much airlines are charging for particular routes or how same-store sales are shaping up at CORRECTION retailers. Restaurant reviewer Bob Lape gives Tini two and a half stars. The rating was incorrect in the Jan. 8 issue. These insights are shared with customers long before companies disclose them, and the See MAJESTIC on Page 10 THIS WEEK IN CRAIN’S 49 ALAIR TOWNSEND ------13 Eager developers grab land THE INSIDER------14

WEEK IN REVIEW ------16 Bounded by West 28th Street to Extell Development Co. acquired 5 million square feet the south and West 43rd Street to a parcel on 10th Avenue between SMALL BUSINESS ------20 of housing going up; the north, Hudson Yards extends West 30th and West 31st streets for REPORT: REAL ESTATE ------23 west from Eighth Avenue to the $23 million, or $166 a square foot, hotels, offices seen Hudson River. Some of the city’s and is considering a mixed-use proj- LARGEST BIDS ------28 leading developers, including The ect that would include a hotel,condo- DEALS------41 Related Companies,Sherwood Eq- miniums and offices. BY JULIE SATOW uities and The Witkoff Group, have In addition, large residential NEIGHBORHOOD snatched up sites.Others,like Aval- rental properties are in the works. two years after the city rezoned on Bay Communities, are Rockrose Development JOURNAL------42 Hudson Yards, the 45-block former hunting for property to buy. Corp. is building a 450-unit CLASSIFIEDS ------44 industrial wasteland is on the brink building on 10th Avenue of a transformation. Twice as expensive NUMBER6 of between West 37th and THE WEEKS AHEAD ------45 The development of 5 million the price of land has dou- new building West 38th streets, and The permits for square feet of housing,or nearly 40% bled in the past year, and the Hudson Yards Dermot Co. and Equity BUSINESS LIVES------47 of the total amount expected to be number of new building per- in 2006 Residential are erecting two CORPORATE LADDER------49 built there over the next three mits issued for the area large towers on Dyer Av- decades, is already under way.Near- jumped to six in 2006 from two in enue between West 36th and West EXECUTIVE MOVES------50 51 ly 1,000 hotel rooms are in the plan- 2005, according to statistics from 38th streets. Another developer, BOB LAPE ------51 ning stages, and the construction of PropertyShark.com, a Web site that Joseph Moinian, is going ahead an office tower could begin later this tracks real estate trends. with a 46-story,478-unit apartment vol. xxiii, no. 3, january 15, 2007—Crain’s New York Business (issn 8756-789x) is published weekly by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals year. Several hotel projects are under tower on a 500,000-square-foot postage paid at New York, N.Y. and additional mailing offices. Postmaster: Send address “I would expect that by the end of way. Sam Chang, one of the city’s plot on West 42nd Street and 11th changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a this year, there will be news of an of- most active hotel developers, is Avenue. copy, $59.79 one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents fice development at the Hudson building four properties on West One of the first office tower de- copyright 2007 by Crain Communications Inc. All rights reserved. Yards,”says Daniel Doctoroff,deputy 39th Street, with a total of 881 velopments out of the gate is likely mayor of economic development. rooms. to be the Brookfield Properties proj-

2 | Crain’s New York Business | January 15, 2007 Missing out on cleantech New York fails to services: $4 billion Doruk, Gaia’s co-founder, com- worth of green build- NYC FIRMS GOING FOR THE GREEN plains that New York is off the radar attract firms, lure ings are expected to screen for many investors.“It would be built this year in Company/location Description Employees have been easier for us to raise mon- funding; advocates the city alone. The ey if we were in California,”she says. Bettencourt Green Distributes building supplies 7 report also highlights Brooklyn “New York is getting better, call for state push upstate’s abundance though.” of natural resources ConsumerPowerline Provides energy 47 Recent measures, like the city BY AMANDA FUNG and underutilized re- Manhattan management services law requiring all new public con- search and develop- Gaia Power Technologies Makes and installs 15 struction to meet green standards, new york is lagging far behind in ment centers as po- Manhattan alternative energy systems reflect a growing awareness of the is- the fast-growing business of clean- tential attractions for Globus Cork Makes ceiling and floors from 12 sue that will help all local compa- tech, an industry forecast to ring up cleantech startups. Globus Cork Bronx renewable resources nies—and New York’s economy. sales of $150 billion worldwide by “New York is a IceStone Makes designer tiles and counters 37 2015, according to a study by the leader in environ- Brooklyn from recycled glass City trying to lure companies New York City Investment Fund mental policy and in- MechoShade Makes and installs solar shades 100+ “cleantech is clearly an area where scheduled to be released this week. centives, but those Queens the city can create and attract new Cleantech companies are de- programs are heavily jobs,” says Saul Shapiro, a vice pres- fined as those that make any prod- focused on getting Scrapile Makes furniture from recycled 4 ident of the New York City Eco- Brooklyn wood scraps uct or service that promotes the con- consumers to buy nomic Development Corp. who servation of natural resources. They [green] products,” Solar Energy Systems Designs and installs solar electric 8 heads the sustainable technologies have become darlings of the tech Ms. Gotsch says. Brooklyn systems industry desk. and investment communities and “We want people to He says city officials are attend- attracted $2.9 billion in venture cap- create companies, ing industry conferences and en- ital last year,78% more than in 2005. build plants and hire couraging cleantech firms to set up Unfortunately, few New York workers here.” shop here. companies are sharing in the boun- NYCIF’s report says the city and ty. From 1999 through 2005, New The money gap state should expand outreach efforts York state’s share of the investment though no agency to both cleantech investors and pot came to a mere 3.45% of tracks the exact num- companies. It also calls for the state $6.8 billion nationwide, according ber of cleantech public pension funds to invest at to Cleantech: a New Engine of Eco- companies in the least $150 million in local cleantech nomic Growth for New York State. state, those that are companies. That puts New York far behind Cal- known are typically Additionally, New York should ifornia, Massachusetts and Texas. startups with a hand- IceStone Solar Energy Systems spur relationships between compa- The report makes half a dozen rec- ful of employees and nies and investors by establishing ommendations aimed at spurring limited ability to forums; increase preferences for lo- the number of cleantech companies raise money. The 42 such firms in more than doubled last year and square-foot plant in the Brooklyn cal green products in government in the state and bolstering their abil- the state that found funding from should double again this year. He Navy Yard and recently won the procurement; leverage the Regional ity to attract capital. 1999 through 2005 raised a total of expects his first round of funding contract to provide countertops at Greenhouse Gas Initiative to create “The industry is fairly nascent,” $235 million. That compares with from the NYCIF this year. The Durst Organization’s new more jobs; and identify legislative says Maria Gotsch, NYCIF’s co- $2.7 billion raised by 278 cleantech IceStone, a Brooklyn firm that Bank of America Building in mid- changes that would encourage the chief executive. “There is no reason companies in California over the produces durable surfaces from re- town. The company has raised development of cleantech in the why—given the size of our mar- same period. cycled glass, and Manhattan-based $6 million. state. ket—New York can’t become a seri- Among those hoping to attract Gaia Power Technologies, which Since its launch in 2002, Gaia “We need to put our stake in the ous player.” capital is Solar Energy Systems in makes and installs alternative ener- Power has raised $3.25 million in ground,” Ms. Gotsch says. “We The report notes that New York Brooklyn, which makes and installs gy systems, are expanding after se- venture capital and state grants; it haven’t lost yet.” state looms as the nation’s largest solar energy-panel systems. Co- curing capital infusions. plans to raise an additional $4 mil- market for cleantech products and founder David Buckner says sales IceStone operates a 55,000- lion by the end of next year. Bige COMMENTS? [email protected] on far West Side BY THE NUMBERS EASY COME, EASY GO ect across from the James A. Farley Last month’s sale of $2 billion in new york city’s fiscal picture will remain Post Office. The company, which city bonds to finance the No. 7 sub- bright, as long as the amount of money coming owns the World Financial Center, way line extension, which will ease in keeps increasing. Last week, in a report on completed its acquisition of a big the commutes of office workers, city finances, the Independent Budget Office property on the west side of Ninth serves as another catalyst for devel- stated that the $3.8 billion budget gap projected Avenue between West 31st and opment.The train,which now stops for the next fiscal year “had all but washed away West 33rd streets late last year. at Times Square,will reach 11th Av- in a rain of better-than-expected tax revenues.”

enue and West 34th Street when the But the expense-side of the ledger managed by ap images On spec construction is completed in 2013. the folks at City Hall isn’t nearly as pretty. The cost of operating New York’s sprawling municipal machinery is pro- brookfield has yet to secure a ten- But the future of Hudson Yards is jected to rise steadily in the near term, according to the IBO. ant or announce its plans. But some intertwined with the state of Ground projects will go forward even with- Zero, where 8.8 million square feet out signed leases, says Eric Anton, a of commercial space is planned for broker for Eastern Consolidated. 2012.With two huge swaths of Man- “Developers are thinking of build- hattan ripe for office development, ing speculative office buildings in competition for tenants is heating up. the area,” he says. At least two major Manhattan Hudson Yards is anchored by sev- tenants—Merrill Lynch and Via- eral public works projects.“With the com—are in the market for new of- High Line, the Javits [Convention fice space. Mr. Doctoroff says that Center] expansion, residential tow- city officials have not spoken to ers along 42nd Street and the Farley Merrill about a possible move to Post Office conversion, it makes for Hudson Yards but have approached quite a stewpot of development,” Viacom, which is looking for 1 mil- says Andrew Mathias, chief invest- lion square feet. ment officer at SL Green, the city’s largest commercial landlord. COMMENTS? [email protected]

January 15, 2007 | Crain’s New York Business | 3 IN THE MARKETS HIGHLIGHTS REEL Fragrance company +2.7% has a nose for growth The Bloomberg/ Crain’s New gent makers and others the world over 4% annual pace.Meanwhile,expected im- York Index Shares rise as IFF rely on IFF to supply the magic ingredi- provements in operating margins over the rose 2.7%, wins contracts ents needed to please the nose and the next three years should produce a 10% an- to end the palate. Customers in- nual growth in earn- week at for product additives clude Estée Lauder, ings per share. The

385. The ➡ McDonald’s and company also enticed S&P 500 scores of makers of investors in October Index rose BY TOM FREDRICKSON household products with a 14% boost in its 1.5%, and processed foods. dividend payout,which closing at nternational flavors & Fra- Analysts estimate currently yields 1.7%. 1431. grances Inc. is enjoying the sweet 2006 earnings at IFF’s strong per- smell of success. $2.43 per share, a gain formance over the last A heady combination of boom- of 19% from the $2.04 year comes after a dif- ing worldwide perfume sales and a the company earned ficult stretch in 2005 RISERS Isharper focus on cost-cutting and mar- in 2005. Those gains when the company 5-DAY 1-MONTH 3-MONTH CLOSING keting have sent shares in the world’s sec- came on an estimated suffered some opera- % CHANGE % CHANGE % CHANGE PRICE ond-largest maker of flavors and fra- 4% rise in revenues, tional setbacks. In the Lazard +12.7% +8.9% +26.7% $52.65 grances up sharply.On Friday,they closed though sales momen- second quarter of at $49.94, up 46% in the last year. With tum picked up toward 2005, it took a $5 mil- Knight Capital +12.0% +13.8% +14.7% $21.26 earnings expected to continue to grow the end of the year. lion earnings hit stem- JetBlue +10.5% +20.3% +59.9% $16.57 briskly, investors should see the shares This year,earnings are ming from shipments Market cap $4.4 billion BlackRock +10.0% +18.1% +13.6% $172.50 gain more altitude in coming months. forecast to tack on an- of contaminated pa- Medco Health +9.4% +14.2% +2.4% $58.71 Recent signals from the company con- other 10% increase,on Trailing 12 months P/E 23 prika. That setback firm that view. Late last year, just three revenue growth of 5%. was partially offset Return on equity 21% months after taking over as the company’s Perfume-ingredi- this year by a $3 mil- SINKERS chief executive, Robert Amen told in- ent sales have been es- lion insurance settle- 5-DAY 1-MONTH 3-MONTH CLOSING vestors, “I believe IFF is really starting to pecially robust lately. ment in the case. % CHANGE % CHANGE % CHANGE PRICE turn the corner in growth.” Meanwhile, They jumped 24% in the third quarter of Going forward, one concern is the Travelzoo -2.6% -3.6% -7.1% $30.99 the company’s wins—contracts for sup- 2006 compared with the same quarter of growing clout of archrival Givaudan, the Quest Diagnostic -2.3% -6.1% +3.0% $50.14 plying additives for new products—are 2005,paced by gains in emerging markets. top-ranked maker of flavors and fra- continuing to increase.Standard & Poor’s Meanwhile, they soared 58% in the Asia grances. The Swiss-based company re- Cablevision -2.1% -0.7% +5.5% $28.39 analyst Richard O’Reilly notes that in- Pacific region and 51% in Latin America. cently extended its lead with the purchase 1-800-Flowers -2.0% -0.7% +19.1% $6.04 variably news of those wins translates to While company officials warn that of a unit of Imperial Chemical Industries. Comverse -1.6% +3.6% -7.8% $20.70 higher sales figures down the road. such gains are not sustainable,they predict Perfumers,food manufacturers,deter- that sales over the long term will rise at a COMMENTS? [email protected]

STOCKS TO WATCH RFR REALTY, LLC Fast-running Steven Madden stubs toe as profits slow from triple-digit rates is pleased to announce IN RECENT YEARS, few companies have done more to enrich their HELLMAN & shareholders than shoemaker FRIEDMAN LLC Steven Madden. Its shares soared 83% last year, and 56% in 2005. This year, the shoe is on the other has leased the top floor of foot. So far, the shares are off 3%. Analysts estimate that in the fourth quarter of 2006, profits rose 25%— 390 PARK AVENUE not bad, but after four quarters of LEVER HOUSE triple-digit growth, that gain may strike some as positively puny.

The tenant was represented by Telecom equipment heavyweight Avaya continues to confound the skeptics. Jonathan R. Serko Shares of the company have risen 9% in the last month. Next week, the and David Malawer former Lucent subsidiary is expected to announce a slight increase in profits, of Cushman & Wakefield. despite a crowded market and fierce price-cutting. To keep profits on track, last week Avaya announced $10 million in fresh cost cuts, including the Richard Farley closing of offices in Europe, the Middle East and Africa. represented ownership. If only all of the companies listed on the Big Board could do as well as its For leasing information please call: owner, the NYSE Group. Last week, Richard Farley the NYSE’s shares tacked on another [email protected] 3% gain, despite news of more 212.308.0700 shrinkage in the exchange’s U.S. market share. Investors are focusing on events overseas, where the NYSE bought a big stake in India’s leading exchange and where the purchase of www.RFRrealty.com Euronext, a big European exchange, will close this winter.

4 | Crain’s New York Business | January 15, 2007 21.3 Berlin Boston BuenosAires The Chrysler Building Chicago NEW YORK,NEW YORK Frankfurt welcomes the following new tenant edited by Valerie Block January 15-21 London

LosAngeles Mesirow Financial Holdings Inc. represented by Madrid David Kleinhandler of Craft outpost Spy plot

Milwaukee CBRE thickens changes course publishers may not resort to using polonium as a weapon, but a

NewYork tung by negative battle is shaping up in the reviews of his nine- publishing world now that three

NorthernVirginia month-old Craftsteak, houses have deals for titles about S the poisoning of Russian spy proprietor Tom Colicchio (right) has a new recipe for Alexander Litvinenko. “I have the first,” boasts Free success.The sweeping changes Martha Levin Paris Press Publisher , who go into effect this week. will release Death of a Dissident in Philadelphia for leasing information, please contact: “We are redoing May.The authors are the spy’s Gregory W.Conen best friend, Alex Goldfarb, and his everything,” says the celebrity widow, Marina Litvinenko.

SanFrancisco David M.Taylor chef. Craftsteak was one of 30 buck ennis Not to be outdone, Charlie meateries to open in the city last year. Conrad, executive editor of 212.715.0300 The revamp features a new menu with dishes not Doubleday Broadway says, “We’re SaoPaulo focused on having the definitive traditionally associated with a steakhouse, along with book.”

Seattle personnel changes, including the replacement of the Mr. Conrad signed New York executive chef. A few weeks ago, Mr. Colicchio expanded Times London Bureau Chief Alan SiliconValley the raw bar, adding more marinated items. Cowell to write Sasha’s Story.He’s applying the lesson he learned Prominent food reviewers have faulted the Chelsea spot from what happened with the

Sydney for its complicated menu, which requires diners to choose Enron books: Kurt Eichenwald’s among beef aged for 28, 35, 42, 49 or 56 days. Some were also Conspiracy of Fools, published long

WashingtonDC after the others, was the biggest left cold by the fare—a major rebuff for the kitchen whiz, best seller. who’s been a critics’ darling since he launched the original But sister imprint Random Craft in 2001. House is challenging Doubleday. “Steve is going to get the story no one else can,” says Club guys go Festival this week Random’s Senior may be little- MAGAZINE Editor Will Murphy, south of border known production referring to Steve nightclub impresarios David company Plum PAGE TOPPER Levine, a reporter Rabin Will Regan and are gringos on Pictures. IN 2006, for the first time with The Wall a mission to bring Mexican food The Manhattan ever, The New York Times Street Journal who to the meatpacking district. firm, started in Magazine beat all other spent 11 years in The partners, who own trendy 2003 by three publications in ad pages. Russia. His We are pleased to announce the promotion of area nightclubs Lotus and Double women under 30, The Sunday weekly boast- Litvinenko book Seven, plan to open a casual has three features ed 3,965 ad pages, a 5% isn’t titled yet. Mexican eatery in March at 71-73 debuting at the increase over 2005. Neither Gansevoort St., at Washington event, more than Doubleday nor Avenue.Their yet-to-be-named any other 1. New York Times Random House venture takes the former space of company.The star- Magazine will say when its Meet, a restaurant that closed over studded movies— 2. People books will be a year ago. all needing published. “We are looking for a chef who distributors— 3. In Style is committed to old-school include Dedication, 4. Forbes Mexican cuisine techniques,” says with Billy Crudup BBQ back Source: Publishers Information Bureau Mr. Rabin, who is president of and Mandy Moore, on table both a group that promotes the and Grace is Gone, neighborhood and of the with John Cusack (below). barbeque junkies can get back to New York Nightlife “The odds are not in your gnawing ribs at Blue Smoke Jared L. Horowitz Association. favor in even getting one film today. Danny Meyer’s popular five- The 90-seat accepted,” says Celine Rattray, year-old smokehouse was closed restaurant—which will also Plum’s co-chief executive. Her for two weeks for repairs. boast a 50-seat outdoor partners are Galt Niederhoffer “The kitchen floor was cracked space for and Daniela Taplin Lundberg. and leaking,” says managing summertime More than 3,285 films were partner Mark Maynard-Parisi. lingering—will submitted for the festival, In addition, a brand-new to Senior Director have a takeout which begins Jan. 18, and dark wood bar was installed in café, “where only 122 made the cut. the subterranean Jazz Standard people can grab a Plum, which produced club. gettyimages burrito and indie flick The Baxter Shutting down the generally smoothie,” Mr. with Paul Rudd in 2005, packed spot had major financial www.cushmanwakefield.com Rabin says. hopes the momentum implications. Mr. Maynard-Parisi from Sundance will stopped short of revealing how help it on Wall Street, much money was lost. Sundance where it is looking to The hardest part was telling splash raise a $20 million fund the staffers, from line cooks to that will let the company bartenders, he says. “It’s a big deal the biggest player make 10 films over the next to lay off 125 people for two at the Sundance Film three years. weeks.” ■

6 | Crain’s New York Business | January 15, 2007 THIS IS WHAT OUR BUILDINGS WOULD BE LIKE WITHOUT YOU.

OUR THANKS TO THE BROKERAGE COMMUNITY FOR ANOTHER SPECTACULAR YEAR 1,022,289 RSF LEASED • 39 TRANSACTIONS

655 Third Avenue CB Richard Ellis • James Ackerson • Derrick Ades • Stephen Eynon • Brian Feil • Craig Reicher • Justin Royce Cushman & Wakefield • David Amsterdam • Gus Field • Friedland Realty • Gene Meer • GVA Williams • Brian Given • Steven Jaray Paul Milunec • Todd Stracci • Newmark Knight Frank • Noel Flagg • Jon Pastel • RE Com Partners • Alan Markowitz • Schlesinger & Company Bert Rosenblatt • 675 Third Avenue CB Richard Ellis • Keith Cody • Cushman & Wakefield • Joseph Cabrera • Grubb & Ellis New York Andrew Hawkins • The Hunter Realty Organization • Richard Gottleib • Ross Zimbalist • Newmark Knight Frank • Leslie Harwood Williamson, Picket, Gross, Inc. • Max Kooper • 733 Third Avenue George Comfort & Sons, Inc. • Dennis Someck • 205 East 42nd Street CB Richard Ellis • Rocco Laginestra • Paul Myers • Paul Walker • 1133 Avenue of the Americas CB Richard Ellis • David Burton Eric Yarbro • Cushman & Wakefield • Tatsuru Kono • Neil Schwartz • Fred Smith • Delmhorst & Sheehan • John Sheehan • Jones Lang LaSalle • Randy Abend • Robert Flippin • Peter Riguardi • John Ryan III • The Jansizian Group • Elina Hadjieff • Philip Metzidakis Richard D. Duryea, Inc. • Richard Duryea • The Richter Organization • Jerry Richter • 1155 Avenue of the Americas NAI Friedland Realty • Carl Silbergleit • Newmark Knight Frank • Barry Gosin • Moshe Sukenik • 114 West 47th Street Cushman & Wakefield • Tatsuru Kono • Vladimir Spector • The Staubach Company • Jennifer McKee • Swig Equities • Gregg Slotnick • One Bryant Park Jones Lang LaSalle • Peter Riguardi • John Ryan III • Washington Realty Group • Eric Berson, Esq.

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THE DURST ORGANIZATION INC. www.durst.org OWNER/BUILDER/MANAGER SINCE 1915 ogy and interventional cardiology, GO OR STAY? are the most heavily wooed,says Mr. Hospitals woo rivals’ doctors LaPenna. When switching hospitals, Continued from Page 1 He is interested in physicians tal that’s on the Berger hit list.They established doctors may have Keeping the faith especially those far along in their with large office-based practices. say that Mount Sinai Medical Cen- much to lose: spokespeople for the hospitals careers. They are risking the loss of “We figure a typical internist will see ter in Manhattan is also hunting for ■ Office space for practices slated to close say that their doctors privileges, referral networks and about 3,000 patients and admit new hires, making discreet calls to ■ aren’t leaving, and they believe that seniority,all of which may be hard to about 60 a year,” he says. prominent doctors. Best operating room times their lawsuits will derail the com- establish elsewhere. North Shore-Long Island Jew- Doctors at Cabrini cite relentless ■ Part-time teaching opportunities mission’s recommendations. “It’s a labyrinth of relationships,” ish Health System’s facility in For- recruiting efforts, particularly on ■ Seniority and status “There’s been absolutely no im- says Mr. LaPenna, “and leaving is est Hills, Queens, has already hired the part of nearby Beth Israel Med- pact,” says a spokesman for Cabrini. ■ risky.” two physicians from competitor ical Center. Informal referral networks A spokesman for Saint Vincent As a result, doctors are moving Parkway Medical Center,which has “NYU is cherry-picking,” says ■ Scheduling priority for patient Catholic Medical Centers and its tar- cautiously. been marked for shutdown. It also one internist,“but Beth Israel wants tests geted St.Vincent’s Midtown agrees. Dr. Andrew Brotman, vice dean has granted admitting privileges to everyone.” ■ Committee assignments Anesthesiologist Dr. Timothy for clinical and hospital affairs at 15 Parkway doctors, says Robert Gil Lederman, a Cabrini radiol- Dowd says that out of loyalty,Cabri- New York University Medical Cen- Hettenbach, executive director at ogist, says that the day after the Source: LaPenna Associates ni surgeons who have ties to other ter, says he has interviewed some 20 Forest Hills Hospital. Berger report came out, fliers were facilities are trying to admit more doctors from troubled hospitals who posted in the hospital’s neighbor- patients to Cabrini to support the want jobs or admitting privileges. Montefiore, Mount Sinai on the prowl hood reading, “Continue your ca- If the Berger recommenda- hospital’s efforts to stay open. “We are absolutely trying to re- industry sources report that reer at Beth Israel.” tions are implemented,Continuum, “It was so busy last week,” he cruit,” says Dr. Brotman. “Doctors Montefiore Medical Center in the Continuum Health Partners, among others, will need more staff says, “they had to open another op- are being reasonably loyal to these Bronx is eager to attract doctors Beth Israel’s corporate parent, de- to serve patients from rivals that are erating room.” hospitals, but they are seeking a from New York Westchester Square clines to comment on its recruiting being shuttered. Doctors in money- backup.’’ Medical Center, a bankrupt hospi- efforts. making specialties,including oncol- COMMENTS? [email protected] Newsweek: staying the course

Continued from Page 1 week Worldwide Publisher Gregory insist that Newsweek is not standing “Anything that differentiates the Osberg says any reduction would be still. The publication’s emphasis, two magazines is great for [Time] in response to a hike in postage costs they say, is on breaking more stories and for us,” says Newsweek Editor later this year. online and increasing the number of Jon Meacham, who took over in Some insiders say Newsweek combined digital and print advertis- October. could also follow the Time Inc.flag- ing programs. Still, Newsweek is hardly im- ship’s lead in cutting back on news mune to the pressures on the cate- and moving to the more advertiser- Growth on the Internet gory that forced Time’s changes and friendly Friday publication—if newsweek has the advantage of that also drove third-place U.S. those alterations prove successful having got a much earlier start on the News & World Report to focus more for its competitor. Internet than Time. Ad revenue for STRATEGIZERS: Editor Jon Meacham on its franchises,including Best Col- “They are conjoined twins,” says Newsweek.com is now “in the mil- (left) and Worldwide Publisher Gregory leges and Best Hospitals. Michael Neiss, senior vice president lions of dollars” and has been grow- Osberg are focused on breaking stories at Zenith Media, a media-buying ing by 50% a year for the past three online. Circulation cuts to come? agency.“They’re both going to catch years, Mr. Osberg says. “We had a

hurt by competitionfrom the In- cold at the same time, and they’re very strong profits year in 2006, and larry ford ternet and cable news, Newsweek both subject to the prevailing mar- [print and online] integration played isn’t growing.Ad pages were flat last ket trends.” a big part in that,” he says. individual voices,and currently sup- weeklies have more life left in them year and were down 11% in 2005, But control of the publicly trad- The international editions of the plies plenty of analysis and opinion than conventional wisdom allows. according to Publishers Informa- ed Washington Post Co., owner of magazine, representing 20% of total from such brand names as George “They’re still where you go to get tion Bureau. Ad revenue rose 2% in Newsweek, is closely held by the circulation, also had a good year; ad Will and Anna Quindlen. your biggest audiences,”says Rober- 2006, to $483 million, but was still Graham family. That makes for a revenue was up 12%, according to They also see no advantage in ta Garfinkle, director of print strat- 4% below 2004’s figure. key difference between the maga- the publisher. coming out on Friday instead of egy at Targetcast tcm, who is with- Newsweek may also be headed for zines: Newsweek is somewhat insu- So,despite predictions of the for- Monday. Mr. Osberg argues that holding judgment on which a cut in its guaranteed 3.1 million- lated from the Wall Street expecta- mat’s demise, Newsweek executives readers are tired of the news by the approach will succeed. “This is go- copy circulation, following Time, tions that weigh on Time Inc.parent see no practical reason to make weekend. “We believe people are ing to be really interesting to watch.” which recently reduced its rate base company Time Warner. changes.They point out that,unlike winding up on Mondays,” he says. 19%, to 3.25 million copies. News- Messrs. Meacham and Osberg Time, the title has always cultivated Some observers say the news- COMMENTS? [email protected]

NuKitchen,a delivery service special- izing in healthy meals,to serve partic- Catwalk controversy A MODEL PROTECTION PLAN ipants in Supermodel of the World, The Council of Fashion Designers of America says the industry should: an international competition. Continued from Page 1 body mass index minimum at 18.5. “These women are young, espe- eticians and nutritionists to ensure Educate all participants on eating disorders and nutrition. cially in the Supermodel of the that the women—some of whom are Doubts about effectiveness Require models with eating disorders to seek help. World search, and they’re just learn- as young as 15—have more than just in the united states, the fashion Hire models who are at least 16 years old. ing about the industry,” says Mark alcohol and nicotine backstage. council did not set physical require- Newhouse,co-owner of NuKitchen. Emaciated models became a glob- ments for models, and some indus- Supply water and healthy foods backstage and at shoots. “We want to show them how easy it al controversy last year, and critics try insiders say the group’s guide- Prohibit tobacco and alcohol backstage. is to eat well.” worry that New York, the U.S. fash- lines will have little effect. With the issue still in the spot- ion capital,is making inadequate ges- “I see a lot of rhetoric so far,” says light, consumers, the press and in- tures that pooh-pooh the problem. Sean Patterson, president of Wil- MC2. The company dismissed two to prevent that from happening. dustry officials will be scrutinizing The outcry began after two run- helmina Models. “Is having some models last year for eating disorders. To maintain the rigorous sched- next month’s runway photos more way models died from eating disor- apples backstage really going to Some players were incensed at the ule of Fashion Week, when models than usual. Scary signs such as visi- ders.Fashion organizations in Spain make a difference?” He says the in- suggestion that the industry needs work as many as a dozen shows a day, ble ribs, bony thighs and sunken and Italy have already implemented dustry still wants waiflike models outside oversight. “I don’t think a not to mention fittings, a model cheeks could spark a backlash. health requirements. Madrid fash- because several major designers and model’s weight has much to do with needs to eat reasonably.On a lithe 5- “We’ve been at an extreme,” says ion officials mandated that all work- stylists favor that look. her health,” says Michael Ross, an foot-11-inch woman, 5 pounds can Rebecca Weinberg, a stylist who ing models must have a body mass Others in the city’s fashion world agent with Marilyn Models Inc. He mean the difference between thin works Fashion Week and predicts index—the relationship of height to appreciate the council’s measured ap- says most models are naturally tall and emaciated. A few agencies are that designers will make small weight—of at least 18. proach.They would like the industry and thin.“I think they’re being slight- consulting with dieticians and nutri- changes this year. “You’re not going That means, for example, that a to police itself rather than submit to ly discriminated against,” he says. tionists to keep models in good shape to see buxom girls coming out,” she 5-foot-9-inch model needs to weigh a regulatory body. Still, one or two runway photos while they’re working. says, “but we’ll at least see more- at least 122 pounds.Milan adapted a “When we see a girl getting un- of dangerously thin models can turn toned girls.” recommendation by the World healthy, we send her home,” says a glamour shoot into a horror show, Feed the thin Health Organization that sets the Suzie Sugerman, an agent with and some in the industry are trying ford models has partnered with COMMENTS? [email protected]

8 | Crain’s New York Business | January 15, 2007 In business, it’s better to receive.

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financing from venture capital firm BV-Cornerstone in 2005 and is in Majestic reinvents stock analysis the process of raising a small amount of additional capital Continued from Page 2 The success of Majestic, which recent years have made much of a through another firm. It covers firm’s 150 clients consider the leg up turned profitable last month, is splash. nearly 500 stocks and is expanding so vital that they pay anywhere from striking because it comes when Majestic, however, shows all the into new sectors, such as biotech- $100,000 to $1 million a year for the most firms on Wall Street are signs of graduating from startup to nology and hotels, to meet growing information. struggling to make money from established player. The company, demand for its research. “Most research from Wall Street providing investment ideas. De- which sells its research by subscrip- isn’t very useful because it doesn’t spite reporting record profits, big tion,generated $15 million in book- In demand provide investors with unique and brokerage houses continue to pare ings last year and boosted its cus- “just about everyone on Wall new information,” says Chief Exec- equity research analysts. Mean- tomer base by 50%. Street who has heard about Majes- utive Doug Atkin.“That’s where we while, few of the small, independ- Majority-owned by its employ- tic’s product uses it,” says Nicholas come in.” ent outfits that have sprung up in ees, Majestic raised $6.5 million in Colas, research director at BNY Jaywalk, a consulting firm that pro-

vides equity research to institution- lindström bekka al investors. “They are really on to something.” “Needless to say, it would have ECONOMIC FORECAST BREAKFAST Majestic owes its proprietary in- been better to be an M&A banker or formation to sophisticated Web- commodities trader in 2006 than a tracking technology and about 30 research analyst,” says Bernstein se- vendor sources who license data to curities industry analyst Brad WILL THE BOOM CONTINUE? it.While all of the data Majestic ex- Hintz. amines is publicly available, Mr. Even so, independent firms pro- WHAT’S AHEAD FOR 2007? Atkin says, it isn’t easy for others to viding advice that isn’t tainted by obtain. For example, the company investment banking ties have failed Greg David offers analysis of car sales thanks to to make an impact.Many are unable For answers to these questions and more, come hear four experts in a vendor that provides information to give investors much of an infor- different fi elds of New York business discuss the direction of the city’s on 86% of all new car registrations mation advantage, in part because economy for the coming year. Be in the know about the latest trends and filed with state motor vehicle de- regulators banned companies years developments on the economic front by attending this important breakfast. partments. ago from selectively leaking news to Majestic has also benefited from analysts. Most investment pros The high profi le panel includes: the rules imposed on big Wall Street don’t want to pay for independent • Greg David, Editor, Crain’s New York Business Brad Hintz firms after scandals earlier in the analysis because their desks are al- decade surrounding their research, ready cluttered with stock research • Brad Hintz, Wall Street Analyst, Sanford Bernstein which was often used as a marketing they receive free from brokers. • Jonathan Miller, President, Miller Samuel tool for investment banking work. • Kevin Ryan, Internet Executive and former CEO, DoubleClick Regulators barred analysts from be- Takeover target ing paid with revenues generated by now that majestic has demon- underwriting. strated that investors will pay big Date: Thursday, January 25, 2007 Cost to attend: Jonathan Miller Meanwhile, trading commis- sums for its research,imitators could Place: Sheraton New York $60 for individual ticket(s) if sions, another key source of analyst enter the business. Some large pre-registered by January 19 compensation, have cratered due to hedge funds already mine online 811 Seventh Avenue (American Express, Visa or (between 52nd and 53rd sts.) the rise of low-cost electronic mar- data as Majestic does, although MasterCard only); $70 thereafter Time: 8:00-8:30 a.m. Networking Breakfast ketplaces such as Instinet, where these secretive firms have no inter- 8:30-9:30 a.m. Program $600 for table(s) of ten if Mr.Atkin was chief executive before est in sharing their conclusions. But pre-registered by January 19; joining Majestic in 2004. with such a commanding position, $700 thereafter Kevin Ryan The scandals and revenue Majestic would surely make an in- YOU MUST BE PRE-REGISTERED TO ATTEND THIS EVENT. ALL TICKETS ARE NON-REFUNDABLE. squeeze forced Wall Street houses to teresting takeover target for one of slash their domestic research bud- the big brokerage houses, like Mor- To register go to newyorkbusiness.com and click on “Events,” or fax your business card gets by 35% since 2000,to $1.76 bil- gan Stanley or Merrill Lynch. and credit card information to “Economic Forecast Breakfast” at 212-210-0499. For more lion last year,according to brokerage “It would be very hard to recreate information, call the Events Hotline at 212-210-0739. firm Sanford C. Bernstein & Co. what Majestic has done,” says a re- During the same period, the head search executive. “It would be a lot SPONSORED BY: count for the industry declined by easier to just buy the firm.” nearly half, to 9,300, according to consulting firm Tabb Group. COMMENTS? [email protected]

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Or call 877-EIQ-1813 (877-347-1813). VIEWPOINT Uninsured: a vexing problem editor in chief Rance Crain publisher Jill R. Kaplan ast year, Massachusetts passed a Mitt Romney and copied by Mr. Schwarzenegger is based EDITORIAL comprehensive plan to provide health on three key ideas: Make the cost of insurance affordable to editor Greg David coverage to the state’s 550,000 uninsured both individuals and companies. Impose responsibility on managing editor Richard Barbieri projects editor Cynthia Rigg residents. Last week, California Gov. both individuals and employers. Make sure state funds go deputy managing editors Valerie Block, Arnold Schwarzenegger, borrowing many only to those providing treatment. Erik Ipsen columnist Alair Townsend ideas from the Bay State, proposed a wide- Most health care experts say that the Massachusetts- senior reporters Aaron Elstein, ranging overhaul to help the 6.5 million California plan is too simplistic for New York.That’s where Lisa Fickenscher, Matthew Flamm, Tom Fredrickson, Samantha Marshall, uninsured in the nation’s largest state. the Berger model comes in. Anne Michaud, Julie Satow, Back in New York, politicians and business leaders In 2003, everyone in Albany knew that Medicaid expenses Miriam Kreinin Souccar L reporters Barbara Benson, Elisabeth Butler, working to help the uninsured, estimated at 3 million people, were out of control. Gov. George Pataki tapped public policy Erik Engquist, Amanda Fung, Hilary Potkewitz, are moving much more cautiously. Last week, the state’s guru Stephen Berger to head an independent group of Gale Scott restaurant critic Bob Lape leading insurer and a major hospital group both proposed experts to study the art director Steven Krupinski modest schemes to expand existing programs. Gov. Eliot issue. Mr. Berger’s deputy art directors Carolyn McClain, The Berger Daniel Mednick Spitzer has talked about the need for a comprehensive report showed that 10% staff photographer Buck Ennis solution but for now is committed only to making sure every panel is an apt of hospital and nursing copy desk chief Wendy Zuckerman copy editors Michele Arboit, Leslie Jay, child in the state is protected. model to apply home beds weren’t Thaddeus Rutkowski It’s time for more ambitious thinking. Fortunately, a needed, and it traced research editor Denise Southwood associate research editor template exists for addressing the problem: the Berger to this challenge how excess capacity Adrianne Pasquarelli commission on hospital closings. leads to higher costs. www.NewYorkBusiness.com online editor Catherine Tymkiw The issue’s complexities are actually well-understood.The His compelling online reporter David Jones

cost of health insurance is so high that many employers analysis persuaded Mr. EDITORIAL AND ADVERTISING OFFICES simply can’t afford it.Too many people—especially the Pataki and the 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 young—who could buy insurance are willing to risk going Legislature to establish a second panel to reorganize the advertising: 212.210.0259 without coverage.Those without it don’t get needed health care system.The commission was given the power to Cable craincom nyk Fax 212.210.0499 preventive and routine care, and when they become ill, they act subject only to a veto by the governor or Legislature. Entire contents ©copyright 2007 Crain Communications Inc. All rights reserved. go to hospitals, the most expensive option.The indirect Mr. Spitzer should proceed with his effort to provide ®CityBusiness is a registered trademark of MCP state-funded subsidies that cover the costs often don’t coverage to every child. But he should also find a public Inc., used under license agreement. reimburse the hospitals or doctors providing care. figure like Mr. Berger to head a broad-based group to come TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. The Massachusetts plan pushed through by former Gov. up with a plan to insure all New Yorkers. $3.00 a copy, $59.79 one year, $109.79 two years. www.NewYorkBusiness.com

ADVERTISING AND MARKETING advertising director Vanessa Cognard LETTERS TO THE EDITOR business development manager Robert N. Grossman senior account managers Holly A. McKeown, William E. Squitieri account executives Andrew Carlin, Derek Reese, Jennifer Siniscalchi, Choosing sides in the java wars Brigitte Stieglitz western account manager Ellen Mazen (Los Angeles) 323.370.2477 come of age.” sales manager, classified STARBUCKS WINS JOY OF JOE: PHILANTHROPIC ON THIS BLOCK RICHES GALORE You should know that the print & online John Gallagher Dunkin’ Donuts American Association of newsletter product manager is eyeing dunkin’ donuts will alair townsend’s Jan. 1 column, Employees and Self-Employed Catherine Evans Gittens Starbucks’ sales coordinator, print & online never beat Starbucks customers. “For charities, the Street is paved Persons will soon be introducing a Lulé Haznedari (“Coffee battle brews in with gold,” failed to provide a low-cost health insurance sales coordinator Anita Perrino city,’’ Jan. 1). Starbucks’ complete picture of the program. credit Pat Grondziak 313.446.6082 coffee is just better, and extraordinary philanthropy for I invite Crain’s readers to take a marketing coordinator Jill H. Bottomley Dunkin’ has poor quality 2006. look at our site (aaesep.org) for assistant circulation manager control in its franchises. The dedicated leadership of details. Michael Holowchuk An example is the Susan and Richard Friedman roger h. madon general manager, interactive Dunkin’ Donuts store on led the 22nd annual Mount President Marc Minardo Eighth Avenue and West Sinai Crystal Ball to a record AAESEP NEW YORK PRODUCTION 36th Street, where I $5.1 million raised at this event. production and pre-press director suspect they skimp on the corbis kenneth l. davis, m.d. Michael Corsi amount of coffee in each pot more than one customer at a time. Chief executive WRITE TO US advertising production manager Marilyn DeMilta brewed. It is always weak. Patrons So, we walk down the block Mount Sinai Medical Center Letters to the Editor: Crain’s New York Business, can’t control how much milk or and across Eighth Avenue— 711 Third Ave., New York, NY 10017. Fax letters to PUBLISHED BY CRAIN COMMUNICATIONS INC. cream is put into the cup, and no dodging taxis—to get a decent (212) 210-0799. Send e-mail to Crain’s staffers chairman Keith E. Crain MORE HEALTH OPTIONS by using their first initial, their last name and Rance Crain self-serve condiments are offered. cup of ’Bucks. FOR FREELANCERS president Plus, though five people may be gerald curreri @Crain.com. For example, Editor Greg David is at secretary Merrilee Crain [email protected]. Names are in the list to the treasurer Mary Kay Crain working behind the counter, they Principal i was very interested in the right. All letters are subject to publication, provid- executive vp, operations William Morrow haven’t figured out how to wait on CS Technology Jan. 1 story “Independent workers ed they are signed. senior vp, group publisher Gloria Scoby group vp, technology, circulation, manufacturing Robert C. Adams vice president/production & WHAT’S COMING UP IN CRAIN’S? manufacturing David Kamis corporate circulation director Report: Report: Report: Report: Report: Report: Patrick Sheposh agenda 40 meetings and small real business founder G.D. Crain Jr. (1885-1973) for New York under 40 conventions business estate of law chairman Mrs. G.D. Crain Jr. (1911-1996) Jan. 22 Jan. 29 Feb. 5 Feb. 12 Feb. 19 Feb. 26

12 | Crain’s New York Business | January 15, 2007 propose a new, less generous pen- sion tier for government workers that would treat taxpayers more fair- Q. GGK’s Slogan is… ly and, over time, reduce the cost of “Quality Companies Are Attracted To Us” state and local governments. Pensions for these employees are In your view, why are quality companies and defined benefit plans. They allow not-for-profit organizations attracted to the employees to retire after making Goldstein Golub Kessler LLP? lower personal contributions—with fewer years on the job,cost-of-living A. “Quality not-for-profit organizations adjustments and the presumption are always seeking ways to do more that any of a host of ailments are job- to accomplish their missions; they related. These benefits are costing implement “best practices” in maxi- New York City alone $4.9 billion mizing their revenue and minimizing this year. expense streams. Part of Albany’s dysfunction is that public employee unions use We offer our not-for-profit clients the campaign contributions to buy pen- best of both — our understanding and Ronald F. Ries, CPA sion sweeteners from the state Leg- support for their mission combined Partner islature.What they fail to win at the with the knowledge of business 212.372.1210 bargaining table they get from the practices that help them build strong, [email protected] state Legislature in special pension sustainable organizations. We recognize legislation. the importance of the NFP sector to the NY region Since pension promises for and we offer a full range of services for not-for-profit workers with even one day on the organizations...that is why they have been attracted to john h.john howard job are protected by the state consti- us for over 42 years”. tution from ever being reduced, en- To learn more about our commercial audit services for actment of a new pension tier is the privately-held companies, our specialized services for SEC reporting only means of reforming this costly companies, hedge funds, broker-dealers, and not-for-profits, or to system. request a brochure, call me or visit our website, www.ggkllp.com. What Gov. Spitzer Government unions are major sources of campaign funds for state and local politicians. Since January GOLDSTEIN GOLUB KESSLER LLP 2004, the health care workers union Certified Public Accountants and Consultants forgot to mention Quality Companies Are Attracted To USSM has given $1.9 million, corrections officers $653,000 and city firefight- 1185 Avenue of the Americas Suite 500 New York, NY 10036-2602 watched eliot spitzer’s State of the State address ers and officers $385,000. So when Tel 212 372 1800 Fax 212 372 1801 www.ggkllp.com Mr. Spitzer discussed campaign fi- with a list by my side. I had written down a reformer’s nance reform and proposed lower dream agenda—about a dozen high-priority issues I donation limits for individuals and hoped he would address. businesses but failed to include Down the list he went. Check, check, check. More unions, it was a glaring omission. He also neglected any mention Icharter schools. Money for the Campaign for Fiscal Equity. of labor law reform. State law pro- Reform in campaign finance, redistricting, public authorities, vides that contracts never truly ex- pire; all the work rules and benefits merit selection of health insurance cover- remain in force until a new wage judges, workers’ com- age. Stem cell research agreement is reached. That means pensation, Medicaid, will be encouraged. that antiquated work rules and un- ethics, the Wicks law There will be billions of affordable provisions are extreme- We are pleased to announce the promotion of and the budget process. dollars in property tax ly difficult to excise. In one upstate There were more relief. city, contracts provide for elective items—such as the con- Spitzer’s agenda is so cosmetic surgery. Some of its re- solidation of local gov- overarching that what tirees are not required to apply ernments—that rarely he did not mention for Medicare; instead, health in- make the news, howev- stands out in stark relief. surance coverage is paid for by lo- er worthy they may be. What he didn’t men- cal taxpayers—a perverse, reverse The law facilitating ALAIR tion was anything seri- revenue sharing with the federal the siting of power TOWNSEND ous concerning the government. plants will be renewed. power of public em- Mr. Spitzer has presented a full Everyone will have ployee unions. plate of reform proposals. Unfortu- broadband access. Brownfields will Mr. Spitzer proposes special aid nately, he has left off some of the be cleaned up. Millions will have to distressed cities. But he didn’t meat and potatoes. Yoav Oelsner CRAIN’S ONLINE POLL WILL YOU SWITCH TO APPLE’S NEW $499 iPOD PHONE? FEWER THAN ONE IN FIVE poll respondents are primed to buy the iPhone immediately; Yes, I have been to Senior Director waiting for a another 22% of those surveyed are willing phone-iPod .18% to purchase the hot new gadget after the combination 34%. No, it’s too expensive price comes down. But the majority of the Yes, when the .22% 223 poll respondents say either that the price comes www.cushmanwakefield.com down No, I like device is too expensive or that they want to 26% keeping my . phone and iPod keep their cell phones and their iPods separate separate.

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

January 15, 2007 | Crain’s New York Business | 13 to dampen such speculation, saying, “Right now, the only tax cut on our agenda is the extension of the $400 COMPTROLLER JOB Who’s in line? [property tax] rebate, which needs GOV. ELIOT SPITZER and Albany’s legislative leaders named a THE INSIDER state legislative approval.” panel of three last week to interview potential replacements for by Erik Engquist and Anne Michaud state Comptroller Alan Hevesi (right). The panel must come How New York, up with five names, which will go to the Legislature for a vote. The 108 Assembly Democrats select the next comptroller if they London stack up vote as a bloc. The following people are mentioned as possible candidates. Some are campaigning openly, while others don’t Weld shuns Rudy to support Romney sen. charles schumer and appear to be interested in the $151,500-a-year job. Deputy Mayor Daniel Doctoroff are newsbloomberg William working on a study of New York RICHARD BRODSKY. The crusading Westchester Assemblyman has the ormer new york gubernatorial candidate credentials to serve as the state’s watchdog. He has led reform of the state’s Weld City’s competitive position relative (right) is returning to his roots, endorsing former to London’s.The report is due to be public authorities. But he has spent his life in politics, and Mr. Spitzer clearly Massachusetts Gov. Mitt Romney for president in a published later this month. wants an outsider with financial expertise. F Real estate honchos worry that move that’s clearly a snub for longtime Weld pal and 2008 ADOLFO CARRIÓN. The Bronx Borough President is said to be interested, and hopeful Rudy Giuliani (left). in a decade, London will be more his selection would please Hispanic activists. He doesn’t have a financial attractive to companies as a global background and wants to run for mayor in 2009. Mr. Weld says he got headquarters location, in part involved with the Romney because of a better tax environment THOMAS DINAPOLI. The Assemblyman from Great Neck, L.I., is well-liked by his campaign before the former and because Sarbanes-Oxley peers and would win an Assembly vote if it were held today. He has served as longtime co-chair of the Democratic Assembly Campaign Committee and is a mayor decided to explore a reporting requirements don’t apply overseas.The report will probably finalist for an appointment in the Spitzer administration. He doesn’t have presidential run and denies be used to fuel a growing financial experience. he was disappointed with movement toward easing SOX ALEXANDER “PETE” GRANNIS. Chairman of the Assembly’s Insurance ap images bloomberg newsbloomberg Mr. Giuliani’s lack of public requirements at the national level. Committee, this Manhattan Democrat is smart and independent. But he support for his candidacy for New York governor last year. would not be a big vote-getter in the Assembly, and he doesn’t pass Mr. “I’m great friends with Rudy and think the world of him,” At MTA, execs Spitzer’s test for financial know-how. says Mr. Weld. climb aboard JOSEPH MORELLE. The Assemblyman from Rochester resigned as Monroe County Democratic Party chair last week in order to distance himself from the However, one source close to there are rumblings in city elliot “lee”sander, the new political post and improve his chances for the comptroller’s job. Business Mr. Weld says that Mr. Giuliani government that a tax cut or rebate chief at the Metropolitan interests like him; unions would fight his selection. He ran a small company. stopped returning phone calls when may be in the works. Until now, Transportation Authority, is WILLIAM MULROW. The investment banker who lost to Mr. Hevesi in the 2002 the Weld campaign was struggling Mayor Michael Bloomberg has kept shaking up the agency. Democratic primary has the outsider status and financial expertise that Mr. James Henly last spring. “There are bad feelings extra revenue for a rainy day, citing has been named Spitzer wants. He has an equity ownership stake in horse-racing consortium over the way Rudy disappeared on a deficit forecast for 2009. general counsel. He was with the Excelsior Racing Associates, which is lobbying to win the state racing him during the governor’s race,” the But the Independent Budget attorney general’s office as chief of source says. Office last week predicted a the Litigation Bureau. Myrna Ramon business and could present a conflict of interest. Mr. Mulrow has said he $2 billion surplus for the fiscal year is the MTA’s new chief of staff. She would sell his share. ending June 30 and $700 million was first deputy director of DIANA TAYLOR. The state banking superintendent and girlfriend of Mayor Will taxman for next year, setting the stage for infrastructure for the Bloomberg Michael Bloomberg might be interested in the job. She’s a Republican, which give city a break? the mayor to announce something administration, with oversight of could hurt her chances. at his State of the City speech this the Transportation Department. as budget surpluses pile up, week. A mayoral spokesman tries Hilary Ring is director of government

affairs and comes from Accenture. administration.The reason: Ernest Tollerson has been named Republicans still control the director for policy and media Senate, so unions prefer to stay in relations. He was a senior vice good stead with Senate leaders. president with the Partnership for But one exception might be New York City. Susan Kupferman, New York’s largest private-sector MTA president of Bridges & union, Local 32BJ.The building PHOTO GALLERY Tunnels, will serve as acting chief service workers’ local is considering operating officer. endorsing Democratic nominee LISTINGS OF LOCAL EVENTS Craig Johnson for the Feb. 6 election. That would curry favor with Gov. 40 UNDER 40 PROFILES AND PHOTOS Diamond district Eliot Spitzer, who is backing Mr. TOP LISTS FOR BUSINESS LEADS foes face off Johnson. NY BUSINESS DIRECTORY the world diamond tower at 580 Fifth Ave. has fired its first Hiring slowdown salvo after failing to stop a proposed at the top LATE BREAKING diamond district building’s tax- break deal with the city.The owner insiders are surprised at how of 580 Fifth signed a key tenant, long it’s taking Gov. Eliot Spitzer the New York Diamond Dealers Club,to to fill some top positions, since a long-term lease renewal. he knew well in advance of the LOCAL NEWS The club had discussions with election that he would probably Extell Development Co. about win. Despite a flurry of RESTAURANT REVIEWS moving to the 40-story building appointments last week, yet to be LINKS TO MEMBERSHIP ORGANIZATIONS Extell plans to construct on the named are the heads of several same West 47th Street block but state agencies, including the INTERACTIVE ONLINE POLLS never got an offer. Extell needs new Health Department, Department or expanding diamond-industry of Transportation, Department SEARCHABLE ARCHIVES tenants to qualify for tax breaks of of Environmental up to $37.5 million over 10 years. Conservation, COMPREHENSIVE INDUSTRY PAGES Dormitory Authority, and Unions split Finance and THERE’S SOMETHING FOR on candidates Taxation. ■ EVERYONE AT a labor source predicts that the majority of union endorsements ELIOT SPITZER has yet to will go to GOP state Senate appoint the candidate Maureen O’Connell in the heads of Nassau district vacated by Michael several state

Balboni, who joined the Spitzer agencies. newsbloomberg

14 | Crain’s New York Business | January 15, 2007 The personal computer changed business, these benefi ts squarely at your bottom line, because respecting then business changed the personal computer. your business means respecting your budget. Demand created generic boxes of speeds and feeds and, Of course, the right person offers the right products—a huge over time, buying a computer became surprisingly similar to range of reliable computing solutions from HP. Such technology ordering a pizza over the phone. “Direct,” yes—but what if is the nerve center through which your company’s past, present you needed more than a box? and future move, day in and day out. It turns out that technology challenges aren’t MEET YOUR It all adds up to an approach that’s both more managed by technology, but by nimble-minded, FRIENDLY personal and more powerful, one that combines thoughtful people. We can introduce you to the exceptional resources and technology of HP some. We recommend a local. A real, NEIGHBORHOOD with the in-person support and business savvy live IT expert, accountable in person. TECHNOLOGY of your local IT expert. A local advisor is familiar with your area It’s an alliance that respects how much and line of work, all the better to customize PARTNER. of your business, and therefore your life, exists solutions that fi t your company, not just your on your personal computers. industry. They’re a force multiplier, giving you access See for yourself by visiting to a powerful network of resources and exclusive partnerships. hp.com/go/facetoface to fi nd someone And a partner can provide 360° service, from strategic advice who’s happy to hear about your business, before you buy to lifecycle support after. Your IT expert aims face to face.

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cuts represent 1.3% of Dow Jones’ ECONOMIC SPOTLIGHT workforce of 7,500. NYSE making global moves the new york stock exchange and three other investors agreed to buy a collective 20% stake in India’s National Stock Exchange from a consortium of Indian shareholders. Goldman Sachs Group Inc., General Atlantic and Softbank Asian Infrastructure Fund are NYSE’s partners in the $460 million deal. … The NYSE, which is in the process of closing on its $15 billion acquisition of MILE-HIGH PARTY: Denver will be the site of the next Democratic convention. Euronext, is close to reaching an alliance with the Tokyo Stock NYC loses convention bid Exchange. THE DEMOCRATIC NATIONAL COMMITTEE picked Denver over Options settlement New York City to host the 2008 Democratic National comverse technology inc.’s former general counsel, William Convention after months of aggressive lobbying by both Sorin, agreed to pay $3.1 million cities. Democrats made sweeping gains in the ROCKY in fines and restitution to settle MOUNTAIN REGION during the midterm elections, and the civil fraud charges with the Economy Watch Securities and Exchange convention could bring Denver up to $200 million in Commission. Mr. Sorin, who November marked the third straight month in which the city’s unemploy- revenue. The Big Apple last hosted the Democrats in 1992. didn’t admit any wrongdoing, was

ment rate stayed below 5% and in which the area’s inflation rate declined. ap images accused of conspiring to OCTOBER ’06 NOVEMBER ’06 COMPARISON manipulate stock-option grants. NYC jobless rate 4.1% 4.5% 4.5%1 Six Flags Building engineers NYC employment change -2,200 -2,300 +52,6002 sells parks sign contract City windfall NY area inflation change -0.5% -0.4% +2.6%3 six flags inc. agreed to sell seven new york city landlords averted new york will reap $1 billion parks to PARC 7F-Operations a strike by 6,000 engineers after more in taxes annually than Mayor 1-U.S. unemployment rate. 2-Change since December 2005. 3-Inflation rate for the latest 12-month period. Corp. in Jacksonville, Fla., for the two sides agreed to a new Michael Bloomberg had $312 million.The move is aimed three-year contract ahead of a estimated for fiscal 2008 through NYC Hotel Stats Broadway Stats at reducing debt and improving midnight deadline last 2010, according to a report by the operations.The properties are in Wednesday.The contract, which city’s Independent Budget Office. Room rates set records throughout Attendance and gross retreated in Buffalo, N.Y.; Concord, Calif.; runs through 2010, includes a the fall, as room rates and occupancy the week ended 1/7, The League of Denver; Houston; Oklahoma compromise on the main sticking levels rose again in November. The American Theatres and Producers City; and Seattle, which has two. point—union health care average for the first 11 months of ’06 says. Attendance is finally showing contributions. was $226.64, vs. $204.66 for the same a fractional gain for the season to period in ’05, says PKF Consulting. date, while gross is up 9.8%. Sirius shines Teen idol with merger talk hearst magazine’s online unit 325,000 shares of Sirius Satellite Radio plans to unveil revamped versions Inc. and rival XM Satellite Radio of CosmoGIRL.com,

300,000 Holdings Inc. surged after Seventeen.com and Teenmag.com istockphoto comments by XM Chairman next month. … In an effort to BRIDGE tollbooths won’t have insurer ads. 275,000 Gary Parsons and Sirius Chief reach more teens, Hearst acquired Executive Mel Karmazin fueled eCRUSH.com, an eight-year-old 250,000 speculation about a merger. A Web site based in Chicago that combined firm would have 13.6 lets users find out anonymously if Gecko-less GW 225,000 million subscribers and someone they like reciprocates the the port authority of New $2.2 billion in annual revenues. … feeling. York and New Jersey scrapped 200,000 12/17 12/24 12/31 1/7 Sirius gave Howard Stern a stock plans to rent advertising space on bonus worth $82.9 million for top of George Washington Bridge beating subscriber goals in his Polo expanding tollbooths to insurance firm Capital IQ’s Weekly Deals Report $500 million contract. Geico.The decision came less with new unit than a week after the agency TRANSACTION SIZE HOWARD COMPANY (in millions) BUYER/INVESTOR TRANSACTION TYPE STERN got a polo ralph lauren corp. signed a two-year deal with Geico big bonus. created a new group to develop valued at $3.2 million. Glass & Associates Inc. $30.0 Huron Consulting Group Inc. SB M&A Manhattan lifestyle brands for specialty and department stores. Global Brand George Little Management $21.0 dmg world media (USA) Inc. SB M&A White Plains Concepts will design, market and Energy venture advertise exclusive, private-label Mochila Inc. $8.0 The Greenspun Corp., Mission GCI for J.P. Morgan Manhattan Ventures, Charles River Ventures brands that will include clothing Next New Networks $8.0 Spark Capital GCI for men, women and children, and j.p. morgan & chase co.’s Manhattan home products and accessories. $17 billion hedge fund, Sigma Metals Inc. $6.2 Gales Industries Inc. SB M&A Highbridge Capital Deer Park, L.I. Management, acquired a stake in Advanced Viral Research Corp. $1.0 Cornell Capital Partners GCI Dow Jones revamp an energy unit of Louis Dreyfus Yonkers dow jones & co. said it would cut Group to expand its oil and LQ Corp. Inc. n/a Dynabazaar Inc. SB M&A 98 jobs as part of a restructuring of natural gas trading. The venture, Manhattan its Enterprise Media Group. which will be renamed Louis Selected deals announced during the week of Dec. 31 for companies headquartered in metro New gettyimages York. n/a Not available. GCI: Growth capital investment represents new money invested in a Three business units, including Dreyfus Highbridge Energy, is company for a minority stake. SB M&A: Strategic buyer M&A represents a minority or majority the Factiva news archive service valued at more than $1 billion. acquisition of existing shares of a company without the participation of a financial buyer. acquired from Reuters, will be —from staff reports and bekka lindström bekka folded into one division.The staff bloomberg news reports

16 | Crain’s New York Business | January 15, 2007 Macklowe Properties is proud to announce its acquisition of 1330 Avenue of the Americas. A signature corporate office building and exciting addition to the Macklowe portfolio. said Fox News won a great deal. “They’re getting 75 cents [per Fox News gets down to business subscriber] for Fox News—that’s a breathtaking amount,” one cable Since then, Chief Operating Of- bined with a similar deal with Com- Levin. Time Warner was celebrat- veteran said. The fee is up from 25 Secures distribution ficer Peter Chernin and Fox News cast, the biggest piece of the distri- ing its acquisition of Turner Broad- cents. Fox Business is priced at deal with Time Chairman Roger Ailes have said bution puzzle is now in place. casting, which houses Fox News ri- roughly 15 cents. that such a service wouldn’t move The agreement between Fox val CNN, and News Corp. was Observers predict a midyear Warner for long- ahead until it had sufficient distribu- News and Time Warner is part of a offering to pay cable operators for launch, but few people really know awaited channel tion. It apparently does. four-pronged deal and wraps up Fox News in return for access. when the service might begin. One Earlier this month, Fox News fi- years of wrangling between two par- Things were different this time. observer suggested that April 15 nally got the go-ahead from Time ties with a contentious history. A Time Warner spokesman con- might be a good start date. BY CLAIRE ATKINSON Warner Cable executives and se- firmed that the Fox News deal in- Competition for business-ori- cured access to the critical New York Four-part deal volved four elements: retransmis- ented consumers is keen, not only as launches go, the Fox News market. The new channel will be when news corp. was trying to sion consent for Fox-owned and among TV channels but also at business channel must hold the carried on basic systems in launch Fox News a decade ago, -operated stations, carriage of the search giants Google and Yahoo. In record for longest gestation in cable Gotham—hitting those influential Time Warner opted to carry business service, an extension of the fact, the latter just partnered with history. News Corp. boss Rupert Madison Avenue and Wall Street MSNBC instead, and a war ensued Fox News contract, and carriage of Fox News to provide business-re- Murdoch floated the idea of a busi- viewers—and on Time Warner’s between Mr. Murdoch and then- the Fox Reality channel. lated video on its Yahoo Finance ness-oriented spinoff back in 2004. digital tiers in other markets. Com- Time Warner Chairman Gerald Executives familiar with the talks page. Magazines including Fortune, Many question the need for additional business shows

Forbes, BusinessWeek and Condé Nast’s Portfolio struggle to hold on to ad dollars as news migrates online. Possibly positive the arrival of a new competitor may be a positive thing for media buyers and work to depress overall prices if Paul Rittenberg, Fox News’ senior vice president of advertising, decides to package the channel with Fox News. Gary Carr, senior vice president and director of broadcast services at TargetCast TCM, says: “I’m not sure I’d bet against Roger Ailes, and we all laughed when he started Fox News. But does the world need an- other business channel?”

Claire Atkinson is a reporter at Advertising Age, a Crain publication.

TOP LEASES, SALES COSTAR SEEKS INFO ON REAL ESTATE DEALS COSTAR GROUP INC. is compiling data for two lists covering the 2006 New York real estate market. The first is a list of the largest office leasing deals in Manhattan; the second is a list of the largest property sales in the five boroughs. The list of sales will include office building, apartment building and hotel transactions, ranked by deal price. Both rankings will be published in Crain’s New York Business on Feb. 19. Brokers and others with information on transactions that could qualify for either list should phone Marcie Wallis of CoStar at (866) 398-9381, or e-mail her at [email protected], by Monday, Jan. 22.

18 | Crain’s New York Business | January 15, 2007 pearl power

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BATTLING Exterminators make killing on bedbugs INSECTS mestic saviors—and boosted their by fate. Liberty has aggressively “They’re definitely adding to our AVERAGE FEE Pest companies can bottom lines hugely—the epidemic seized its opportunity. In March, revenues,” says Paul Calabrese, the for 1-bedroom barely keep up is posing a whole range of difficult Liberty launched an online ad cam- firm’s owner. apartment: $275 issues for an industry that is largely paign. The company is currently The bug plague also carries real to $800 with complaints; ads made up of scores of small firms.For spending $16,000 a month on bed- risks for the industry. Some exter- PROFIT MARGIN 50% focus on new services openers, most exterminators have bug ads, up from no expenditures as minators guarantee their work, little actual experience with an ene- recently as a year ago. leaving them open to lawsuits if the NUMBER OF TREATMENTS my that was virtually eradicated by Other exterminators are starting pests get a second wind.The threat NEEDED One to three BY CAROLINE PRESTON the use of the now-banned pesticide to follow suit. Brooklyn’s Absolute of legal action is already beginning CHALLENGE Bedbugs can go DDT just after World War II.In ad- Death, a two-man firm with only to drive up exterminators’ insur- or most new yorkers, dition, many firms are simply hav- ance costs. Liberty’s Mr. Cappa more than a year between meals bedbugs are tiny,blood- ing a hard time keeping up with de- took out an additional $5 million BOTTOM LINE “Most bugs don’t sucking creatures in- mand. ‘It will get worse insurance policy after he started stand a chance against creasingly likely to doing the majority of his work on exterminators,” says Gene Miller, wreak havoc on people’s Desperate customers before it gets bedbugs. operating officer at Broadway Fhome lives. standard pest management in better,’ says Exterminating. “Bedbugs stand a Possible lawsuits For Richard Cappa, they are a Queens,for example,has had to turn chance.” godsend. away some desperate bedbug cus- while she has not heard of any “Out of nowhere, they’re the big tomers as it struggles to keep up one expert suits to date, Dini Miller, an associ- moneymaker,” says Mr. Cappa, with the burgeoning demand from ate professor in urban pest manage- lems is the limited number of pesti- founder of Liberty Pest Control in longtime clients. Broadway Exter- ment at Virginia Tech, says they cides available to fight the bugs. Brooklyn. “It used to be termites, minating in Manhattan temporari- could pop up in the coming months Most of the chemicals used against but now it’s bedbugs.” ly yanked some of its online adver- as the bug plague worsens. bedbugs fall into the category of Mr. Cappa is one of a growing tising this summer after seeing a “It will get worse before it gets pyrethroids, which attack the bugs’ number of independent extermina- 50% increase in calls between July $100,000 in revenues, is spending better,” says Ms. Miller. nervous system. tors who have seen a hefty jump in and August. $5,000 a month on advertising. In response, some companies are But it’s dangerous to have so business because of New York’s bed- Liberty Pest Control, one of the Bedbugs now account for 20% of its changing their policies to adapt to limited an arsenal because the bugs bug epidemic. The city recorded larger local firms—with sales of revenues. the bugs. Standard Pest Manage- can easily develop resistance, says 4,638 bedbug complaints in the year $4 million and a full-time staff of At Brooklyn’s Abolish Pest Con- ment, for example, recently decided Louis N. Sorkin, an entomologist ended June 30, up from zero just 56—gets 25% of its revenues from trol, which has just one full-time to treat all bedbug-infested apart- with the American Museum of three years earlier. battling bedbugs. That is up from employee and about $100,000 in ments twice. Other companies now Natural History. But while the pests have elevated literally nothing three years ago. revenues, that figure is 30% and ris- insist on three treatments. exterminators to the status of do- Those gains are not driven just ing fast. Adding to exterminators’ prob- COMMENTS? [email protected]

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NOTEWORTHY MOVE: Roger Faxon of EMI Music Firms flee Publishing liked being in midtown, but his landlord’s rent demands prompted the firm to midtown head to Chelsea. rent run-up 30% rise and counting has many weighing moves out of the area

BY ANDREW MARKS for more than two decades, the U.S. publishing arm of EMI Group happily called midtown Manhattan home. Early last year, when the company opened negotiations about renewing its lease, the good times ended. “The landlord wanted a rent that was substantially more than we’re used to paying, and then the price kept going up every time we talked,” says Roger Faxon, co-chief executive of EMI Music Publishing. Instead of biting the bullet and remaining in their two Rockefeller Center loca- MIDTOWN ilar ideas. Following last tions, EMI executives chose MADNESS year’s rent spike of as much as to decamp to Chelsea. HEADING FOR 30% in many tonier loca- There, the scene is far EXITS Firms try tions, such as Park Avenue trendier, and the rents are downtown, and the Plaza district, many suburbs significantly lower. Mr. Pages 25, 26 firms whose leases are com- Faxon reports that the ing up for renewal have ma- move has brought significant cost jor cases of sticker shock. Brokers savings. report that they are being inundat- “We love midtown, but we real- ed with requests from tenants to in- ized we don’t need to be there,” he vestigate alternatives to midtown.A says. “The more we thought about growing number of companies, like it, the more appealing the notion of EMI, are already packing up. moving became.” “Companies by and large want to All across midtown, longtime stay in midtown, but they’re asking

tenants are beginning to harbor sim- See FIRMS FLEE on Page 25 neff dave

THE STATS Bronx offers refuge for manufacturers RENTS PER SQUARE FOOT FOR BRONX INDUSTRIAL SPACE home in Astoria, Queens, but space square-foot home in the South ident at CB Richard Ellis’ office in Hard-pressed firms in the area had become scarce and Bronx. Queens, adds, “The Bronx used to eager to remain exceedingly pricey. While Mr. be the cheapest place to go.” Now, Mantzakos knew he could get all Rent hike he notes, it’s nearly the only place $8 to $10 in city home in on the space he needed—and at a price he has lots of company. A wave to go. affordable space he could live with—in New Jersey, of residential development in Among the businesses moving RENTS PER SQUARE FOOT FOR he was desperate not to take that Queens and Brooklyn and the steep into the Bronx is Anheuser-Busch. QUEENS INDUSTRIAL SPACE option. rise in industrial rents it has The beer giant plans to build a BY WENDY DAVIS “I wanted the company to re- touched off has sent many users of 167,000-square-foot warehouse main part of New York,” he says. “I industrial space scurrying to the and distribution facility on city- $10 to $12 spiro mantzakos was a man on a didn’t want my company to become Bronx. owned property in Hunts Point this seemingly impossible mission—to like the New York Jets.” “The Bronx has become the last year to replace its longtime ware- find an affordable new home for Late in 2006,Mr.Mantzakos fi- bastion of industrial real estate,” house in Long Island City,Queens. Less visible, but more impor- his successful, 11-year-old food nally found what he was looking for says John Ritter, executive vice Federal Express, meanwhile, is re- tant, is a flood of small and medi- distribution business without leav- in one of the last places he tried. president at Sholom & Zuckerbrot portedly looking into erecting a um-size businesses that are fleeing ing the city. Early this year, he plans to move Realty in Queens. 100,000-square-foot facility in to the Bronx. Late last year, a Metro Foods had outgrown its Metro Foods to its new 30,000- John Reinertsen, first vice pres- Port Morris. See BRONX on Page 24

January 15, 2007 | Crain’s New York Business | 23 REPORT REAL ESTATE

While industrial businesses al- ready in the rezoned areas are legal- Bronx: refuge for manufacturers ly allowed to remain, an influx of HELPING residents makes that difficult. The HAND new neighbors complain about Continued from Page 23 Dolgin Affiliates in Queens. He quently with city approval. Since noise, trash and street congestion, BRONX OFFICIALS have not just 36,000-square-foot building in Zer- notes that many other Brooklyn and 2001, the Bloomberg administra- and their mere presence drives the been sitting back and waiting for ega Industrial Park with a 17,000- Queens-based users of industrial tion has rezoned 9.6 million square cost of lease renewals through the the world to beat a path to their square-foot storage yard drew eight space are “in a search mode right feet of industrial space in Brooklyn roof. In fact, many landlords in door. In recent serious bidders. No fewer than sev- now.” Those efforts are focusing on to residential or mixed industrial/ Brooklyn and Queens simply refuse years, they have en of them hailed from Queens, ac- the Bronx. residential use. It is considering re- to renew those leases at any price, in launched various cording to Mr. Reinertsen. zoning another 7.3 million square the hope of converting their proper- marketing efforts At least two of Long Island Residential conversion feet. Queens, meanwhile, has lost ties to far more lucrative housing. and incentive City’s bigger taxi fleets have also the bronx’s steep climb in popu- 1.2 million square feet of industrial While the Bronx has also seen a programs. Three been scouting Bronx locations re- larity is being fueled by a mounting space. It could lose as much as 3.4 decline in industrial space due large- years ago, for cently,according to Neil Dolgin,ex- loss of industrial space, which is be- million more, according to the New ly to zoning changes affecting 1.6 example, the ecutive vice president of Kalmon ing converted to residential use, fre- York Industrial Retention Network. million square feet,the borough still borough created Adolfo Carrión a $6.75 million fund to provide no-interest loans to businesses that want to make energy-saving renovations. The borough is also home to three Empire Zones and one Empowerment Zone, where companies are eligible for state and federal subsidies, respectively. In addition, the Bronx Overall Economic Development Corp. has reached out to businesses across the country, touting the borough’s easy connections to major highways and its superior accessibility as the city’s only The Treeline Companies mainland borough. “We think we have the best location in the region, given our is proud to announce infrastructure and the relative ease with which you can move in and out of the Bronx,” says its latest acquisition Borough President Adolfo Carrión. in the Nassau County Hub: has a lot of available inventory. In addition, the price pressure on in- dustrial leases has been far less se- 990 Stewart Avenue vere than in other boroughs. Rents for industrial space now hover be- 207,000 SF of Class-A office space tween $10 and $12 a square foot in Queens, compared with a range of just $8 to $10 in the Bronx, says Sholom & Zuckerbrot’s Mr. Ritter. For some manufacturers,the lure WWW.TREELINECO.COM of the Bronx isn’t just the low price of the space, but also its configura- tion.The borough boasts far more of the single-story buildings that many users find most efficient. A better building that is precisely what drew Met- alworks Inc., which had been based in Corona,Queens,for more than 20 years.Jeff Dyzenhaus,the metal fur- niture maker’s vice president,says he searched for more than year before finding the perfect building for his needs in the Unionport section of the Bronx. Metalworks bought a single-story, 20,000-square-foot building for under $150 per square foot. It also purchased an adjoining 15,000-square-foot parking lot. The building itself has about 20% more floor space than the com- pany’s former home,and since it’s on one floor, workers will no longer have to transport the high-end fur- niture they manufacture up and down flights of steps. “It’s a much better layout,” says Mr. Dyzenhaus. “We gained dra- matic efficiency.”

COMMENTS? [email protected]

24 | Crain’s New York Business | January 15, 2007 REPORT REAL ESTATE

THIS IS THE Firms flee midtown rent run-up EAST COAST’S

Continued from Page 23 on Sept. 11, 2001—will consolidate PREMIER FILM & TV SETTING SAIL whether it’s worth it,” says Peter its operations downtown on Water PRODUCTION Riguardi, president of Jones Lang Street.There, the insurance compa- LaSalle’s New York office. ny will pay $30 per square foot,com- COMPLEX! E. 42nd St. It’s hard to find a broker these pared with $80 at East 52nd Street. days who isn’t working with one or Brokers say that they expect the E. 34th St. two major companies that are con- market to be increasingly character- sidering relocating all or part of their ized by such rental “arbitrage”

E. 23rd St. Broadway businesses from midtown to less moves.

W. 14th St. pricey parts of Manhattan—or in The prospect of reaping big sav- some cases, heading out of the city ings certainly appealed to Jim Spitz, entirely. managing partner at law firm Har- “It’s happening right now,” says ris Beach, which is heading to 100 Dean Shapiro, executive managing Wall St. from 805 Third Ave. OFFICE SPACE director of CB Richard Ellis’ New “When you analyze the added

York operations.“But it will happen commute for our staff and attorneys, AT Kaufman Astoria Studios more as leases roll over.” you’re talking about an extra five ufman Astoria S 34-12 36TH STREET, ASTORIA, NEW YORK He notes that many midtown minutes,” Mr. Spitz comments. companies that signed leases in the “When you put that up against a 5,000 SF to 60,000 SF mid-1990s are looking at rent in- 40% difference in rent, moving was Available Now. bekka lindström bekka creases of at least an easy decision.” ★ OLD ADDRESS MIDTOWN ■ New building installation ■ On-site parking MADNESS 100%. For a tenant ■ At the Center of the exciting “New” Astoria 521 Fifth Ave. paying $30 per 23 skidoo 5,000 square feet Some switch neighborhoods, square foot for such arguments are not lost on FOR LEASING INFORMATION, PLEASE CONTACT: ★ NEW ADDRESS as others eye 100,000 square feet Viacom and The Walt Disney James J. De Luca, Senior Director suburbs 55 Broadway Page 26 of space, a doubling Co.,which are both widely believed 212.841.7681 6,000 square feet would translate into to be weighing similar steps. So, [email protected] $3 million a year in additional costs. too, is the U.S. arm of British ad- SAVINGS More than Phil D’Avanzo, Director Rents for Class A office space in vertising and marketing conglom- $15 per square foot 631.425.1226 midtown averaged $68.32 per erate WPP, whose units include [email protected] WHILE BIG TENANTS are the ones square foot at the end of last year,ac- Grey Advertising and Young & that everyone tends to focus on, cording to Cushman & Wakefield Rubicam. Andrew Behymer, Senior Director small space users occupying less Inc.—up 28% from levels at the be- Despite all of the talk, most 212.841.5029 than 10,000 square feet ginning of 2006. That dollar figure midtown landlords are still betting [email protected] accounted for more than 77% of breaks the neighborhood record of that when the time comes for ten- the new leases signed in midtown $67.40 set in 2000, on the eve of the ants to make decisions,the vast ma- in 2006, according to Cushman dot-com bust. jority of them will stay right where & Wakefield Inc. Small tenants’ In some buildings and submar- they are. History is clearly on the stomach for high rents will be kets, the run-ups have been truly landlords’ side. crucial to landlords’ wishes for yet phenomenal. Asking rents now ex- “The last few years have shown another banner year in 2007. ceed $100 per square foot at 25 mid- us the premium that companies Landlords can only hope that town properties. And it’s not only a are willing to pay to stay in mid- New York doesn’t harbor too handful of buildings with Central town,” says Marcus Rayner, manag- Park views that command these ing director of tenant broker Cresa many businesspeople like Gavin rents. Several towers on once-lowly Partners. Anderson, who co-founded West 42nd Street joined the triple- Certainly, the ultralow vacancy investment research firm Gover- digit club last year, as did the newly rate for Class A offices in mid- nanceMetrics International constructed New York Times town—5.8% and sinking—demon- seven years ago in midtown. He Building, across the street from the strates that demand for space there had planned to stay in the Port Authority Bus Terminal way remains robust.Last year,there were neighborhood—until last year, over on Eighth Avenue. many early renewals of leases ending when his landlord said that the “Probably this rise in rents in as far out as 2009, says M. Myers rent for a new lease on his 5,000- midtown has occurred at a faster Mermel, chief executive of real es- square-foot office would double. rate than ever before in the history tate advisory firm TenantWise. “My eyes nearly bugged out of of the Manhattan real estate mar- New tenants are moving into the my head,” says Mr. Anderson. ket,” says Stuart Lilien, managing area as well. “After I picked myself up off the partner at tenant brokerage The “Despite the prices,we’re getting floor, I called a couple of friends Lansco Corp. more business than ever from out- in the real estate business.” of-town companies coming in,”says They confirmed that the The hedge-fund effect Marc Miller, president of tenant landlord’s demands were typical. he and others attribute the broker Miller & Partners Ltd. But Mr. Anderson got a pleasant change to the recent phenomenal Inevitably, however, the higher surprise when he learned how growth of law firms and private eq- the rents, the smaller the pool of much he could save just a 10- uity and hedge funds, and their im- tenants able to afford them. No minute subway ride away. “The mense appetites for Class A space— wonder the speed of the recent run- price differential is incredible,” he especially in trophy buildings. up has created so much nail-biting says from his 35-employee firm’s “I see no reason for that to slow among tenants. Some experts say new digs at 55 Broadway. down so long as the economy re- that any sign of a faltering economy For some small midtown mains stable,” Mr. Lilien says. could finally turn the legions of tenants, the hunt for affordable Until recently,most of those flee- fretful fence-sitters into midtown ing midtown rents, or considering defectors. rents doesn’t take them even that doing so,were nonprofits and small- “Historically, when you get to a far. In September, principal Wright er service firms on tight budgets. level where the rent differential be- Ohrstrom moved six-person Now the range of businesses is tween midtown and downtown hits private-equity firm G.L. Ohrstrom broadening to include media and 50%, that’s the tipping point where & Co. to 370 Lexington Ave. at marketing firms and, lately, even fi- you see large groups of tenants start East 41st Street, from 717 Fifth nancial services and law firms (see to move,” observes Mitchell Kon- Ave. at East 56th. “It’s just 15 box, Page 26). sker, a Cushman & Wakefield exec- blocks south, but the rent’s a Later this year, for example, Aon utive vice president. “We’re at that fraction of what our renewal Corp.—which relocated some op- point now.” would have been,” he says. erations to midtown following the loss of its World Trade Center home COMMENTS? [email protected] REPORT Midtown refugees settle in suburbia For the economy- minded, downtown MOVING IN isn’t far enough MANHATTAN COMPANY Aon BY ANDREW MARKS FROM 55 E. 52nd St. TO 199 Water St. increasingly, midtown tenants are having to face the fact that rents are SPACE 221,314 square feet on a tear not just in their immediate COMPANY Darby & Darby neighborhood, but all across the FROM 805 Third Ave. borough as well. For large public companies with TO 7 World Trade Center shareholders to please, as well as for SPACE 81,734 square feet many small companies that divvy up profits among their partners, the COMPANY Clear Channel Communications economic argument for fleeing Manhattan altogether is becoming FROM 220 W. 42nd St. overwhelming. TO 32 Sixth Ave. In recent months,RBS Securities SPACE 121,356 square feet announced that it will relocate 600 jobs from 101 Park Ave. to a new COMPANY Harris Beach building in Stam- FROM 805 Third Ave. MIDTOWN ford,Conn.Within MADNESS TO 100 Wall St. days, the Bank of Ireland also said SPACE 46,174 square feet that it will move a COMPANY IAC/InterActiveCorp block of staffers FROM 152 W. 57th St. from Manhattan to Stamford. Scott Landis, an office building TO 540 W. 19th St. owner in Stamford, says he’s in talks SPACE 190,000 square feet with two Manhattan-based compa- nies, each of which is looking for COMPANY Labaton Sucharow more than 250,000 square feet of & Rudoff space. FROM 100 Park Ave. Big Swiss bank Credit Suisse al- TO 140 Broadway ready shifted some of its private SPACE 68,442 square feet bankers to Rye Brook.True, a com- pany spokesman says the move was made to accommodate clients locat- ed in Westchester County.But rents even mighty Merrill Lynch has con- of $30 per square foot for the firm’s firmed that it may relocate its head- METROPOLITAN new 8,000-square-foot lease versus quarters out of downtown New CENTER $100 per square foot for its Manhat- York. Brokers report that insurance tan space may have had something Goliath AXA Equitable and Euro- to do with the decision. pean financial giants HSBC and Rents at the best Class A office Deutsche Bank are also scouting for
15 Minutes
93,000 SF buildings in Stamford, Conn., and locations outside the city. From Midtown Contiguous in Westchester top out in the mid- In the media world, Viacom is $50s per square foot, says Jeffrey reportedly considering locations in Manhattan
Up to 130,000 Newman, who manages two Stam- Long Island City, Queens, and in
SF Available ford office buildings for W&M Jersey City, as is Disney. London- Across From Properties. based advertising conglomerate Giants Stadium
High-Visibility WPP is also said to be looking at op- A year of change
Signage tions outside the city for some of its Shuttle Bus To although the number of compa- midtown operations. NJ Transit / Opportunity nies heading for the burbs is small, For Clutch Media & Marketing,
State Of The Art that could very well change over the the moment of truth came late last Penn Station next 12 to 18 months, says Richard year, when Clutch merged with Upgrades & Economou, a senior vice president World Wide Marketing. with Equis Corp.in Manhattan.He “We looked at staying in mid- Amenities is doing feasibility studies for two town, but the rents were just ridicu- large companies based in midtown lous,” says Ronnie Zeidel, Clutch to determine whether or not they Media’s chief executive. need to remain in New York. In the end,the 15-employee firm “It’s not an easy thing to relocate moved to Stamford, near the homes people, so these companies are not of the firm’s two partners. approaching this idea lightly,” Mr. Real estate insiders think that Economou says.“Moving out of the some businesses may end up strip- city is under serious consideration ping down their Manhattan offices. PREMCLASS A OFFICE BUILDING IN NORTHERN1ER NEW JERSEY by a lot of companies with leases ex- “You’ll see instances in which piring over the next few years.” companies choose to keep only their EXCLUSIVE LEASING AGENT PETER W. HAMBURGER CURTIS J. FOSTER DAVID J. DeMATTEIS Carrying out feasibility studies top executives in town and locate T. 201-460-3370 T. 201-460-3367 T. 201-460-3383 may prove to be a bit of saber-rat- everyone else outside the city,” says [email protected] [email protected] [email protected] tling designed to squeeze conces- Stuart Lilien, managing partner at sions out of landlords and City Hall, The Lansco Corp.,a brokerage firm. www.onemeadowlands.com but the gambit is becoming increas- ingly common. In recent weeks, COMMENTS? [email protected]

26 | Crain’s New York Business | January 15, 2007 a new

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Paul N. Glickman, Executive VP 212-841-7847 [email protected] A. Mitti Liebersohn, Executive VP 212-841-7860 [email protected] Alexander M. Chudnoff, Executive Dir. 212-841-5981 [email protected] Diana L. Biasotti, Managing Dir. 212-841-7613 [email protected]

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FUELING NEIGHBORHOOD Share for Top Five BIDs Top Five in Number of Businesses Top Five in Number of City Blocks ECONOMIC GROWTH By assessment budget, in thousands Grand Central Partnership Alliance for Downtown New York 23,000 113 Top 25 total: $67,471.0 Join the club The Flatiron/23rd Street Alliance for Downtown New York Grand Central Partnership 8,000 Partnership, Fordham Road and Dumbo 68 Improvement District are new to the list. All others Fashion Center East Midtown Association 30.0% 6,000 48 Money Assessment budgets rose at HUB $20,256.5 Top five 34th Street Partnership Third Avenue and Lincoln Square—29.4% 70.0% Lincoln Square $47,214.5 5,000 and 6.6%, respectively, from 2006. 33 Times Square Alliance Times Square Alliance Location, location 17 are in Manhattan, 5,000 33 4 in Brooklyn, 2 in the Bronx, 2 in Queens. *BID estimate. bekka lindström bekka NYC’s Largest Business Improvement Districts Ranked by assessment budget

2007 No. of assessment No. of city businesses budget1 blocks in located in Year Rank BID Phone/Web site Top executive (in thousands) district district established Services provided Geographical boundaries

Alliance for Downtown New York Inc. (212) 566-6700 Robert Douglass $13,000.0 113 8,000 1995 Supplemental sanitation and City Hall to the Battery, between the East 1 120 Broadway www.downtownny.com Chairman security, economic development, River and West St. New York, NY 10271 streetscape and transportation improvements, marketing Grand Central Partnership (212) 883-2420 Peter S. Kalikow $11,565.5 68 23,000 1988 Sanitation, public safety, Irregular borders from 54th St. to 35th St., 2 122 E. 42nd St. www.grandcentralpartnership.org Chairman streetscape improvements, tourist between Second Ave. and Fifth Ave. New York, NY 10168 assistance Times Square Alliance (212) 768-1560 Mike Stengel $9,632.0 33 5,000 1992 Community development, 53rd St. to 40th St., between the west side 3 1560 Broadway www.timessquarenyc.org Chairman neighborhood marketing and of Sixth Ave. and Eighth Ave., including New York, NY 10036 promotion, supplemental security Restaurant Row to Ninth Ave. and sanitation 34th Street Partnership (212) 719-3434 Daniel A. Biederman $8,657.0 31 5,000 2 1992 Security and sanitation, tourism 35th St. to 31st St., between Park Ave. and 4 500 Fifth Ave. www.34thstreet.org President and visitors’ services assistance, 10th Ave. New York, NY 10110 streetscape improvements, operations of two public parks Fashion Center (212) 764-9600 George Kauffman $4,360.0 25 6,000 1993 Public safety, street cleaning, 41st St. to 35th St., between Fifth Ave. and 5 249 W. 39th St. www.fashioncenter.com Chairman capital improvements, economic Ninth Ave. New York, NY 10018 development MetroTech (718) 488-8200 Michael Weiss $2,624.5 25 150 1992 Sanitation, public safety, South side of Tillary St. to both sides of 6 15 MetroTech Center www.metrotechbid.org Executive director marketing and promotion, façade Willoughby St., between both sides of Brooklyn, NY 11201 improvements Flatbush Ave. and both sides of Adams St. Fifth Avenue (212) 246-6256 Thomas Cusick $2,282.5 17 3,000 1993 Supplemental security, Both sides of Fifth Ave. between 61st St. 7 630 Fifth Ave. — President supplemental sanitation, tourist and 46th St., and both sides of 57th St. New York, NY 10111 assistance between Madison Ave. and Sixth Ave. Madison Avenue (212) 861-2055 E. William Judson $1,757.0 29 1,100 1996 Security, sanitation, capital Madison Ave. and its side streets, between 8 59 E. 79th St. www.madisonavenuebid.org Chairman improvements, marketing and 86th St. and 57th St. New York, NY 10021 promotion Flatiron/23rd Street Partnership (212) 741-2323 Jennifer A. Brown $1,680.0 32 4,800 2006 Supplemental sanitation and 21st St. to 28th St., between Sixth Ave. 9 27 W. 24th St. www.flatironbid.org Executive director security, marketing, and Park Ave.; Lexington Ave. from 22nd New York, NY 10010 neighborhood enhancements St. to 26th St., including the blocks east of Lexington Ave. from 22nd St. to 25th St. East Midtown Association (212) 813-0030 Rob Byrnes $1,650.0 48 3,000 2002 Beautification, marketing, 63rd St. to 49th St., between Second Ave. 10 875 Third Ave. www.eastmidtown.org President sanitation, security and Madison Ave. New York, NY 10022 Lincoln Square (212) 581-3774 Andrew N. Pucher $1,535.3 33 200 1997 Sanitation, security Broadway between 70th St. and the north 11 1841 Broadway www.lincolnbid.org Chairman officers/ambassadors, side of 58th St.; Columbus Ave. between New York, NY 10023 beautification, visitor services, 68th St. and 60th St.; east side of neighborhood promotion Amsterdam Ave. between 70th St. and 60th St.; two blocks of Central Park West Union Square Partnership (212) 460-1200 Jennifer E. Falk $1,439.5 18 3,000 1984 Supplemental security and Both sides of 14th St., between the western 12 4 Irving Place www.unionsquarenyc.org Executive director sanitation, neighborhood corner of First Ave. and the eastern corner New York, NY 10003 promotions and publications, of Sixth Ave.; Union Square Park itself; government liaison, economic and properties around Union Square Park north retail development to 17th St. and Union Square East and West Fulton Mall Improvement Association (718) 852-5118 Michael Weiss $1,430.0 16 250 1976 Street cleaning, public safety, Fulton St. from Flatbush Ave. to Boerum 13 15 MetroTech Center www.fultonstreet.org Executive director retail marketing and recruitment, Place; DeKalb Ave. from Flatbush Ave. to Brooklyn, NY 11201 events Albee Square Bryant Park Management Corp. (212) 768-4242 Daniel A. Biederman $750.0 6 n/a 1983 Security and sanitation, capital 42nd St. to 40th St., between Fifth Ave. 14 500 Fifth Ave. www.bryantpark.org President maintenance and park and Sixth Ave. New York, NY 10110 improvements, horticultural program, special events for Bryant Park Jamaica Center Improvement (718) 526-2422 Claude Brodwell $737.5 22 300 1979 Sanitation, graffiti removal, Jamaica Ave. between 169th St. and 15 Association — President seasonal banners and holiday Sutphin Blvd.; Union Hall St. between 90-50 Parsons Blvd. lighting, marketing and Jamaica Ave. and Archer Ave. Jamaica, NY 11432 promotion 125th Street (212) 662-8999 Barbara Askins $603.0 5 278 1993 Sanitation, marketing and 125th St. between Fifth Ave. and 16 271 W. 125th St. www.125thstreetbid.com President, chief promotion, security lighting, Morningside Ave. New York, NY 10027 executive strategic planning Continued

28 | Crain’s New York Business | January 15, 2007 Thanks to our longtime friends we’ve enjoyed a prosperous year.

AIG Warburg Dillon Read AIG Valley National Bank AIG $15,800,000 $25,000,000 $27,000,000 $14,400,000 $5,000,000

240 Residential Apts. Office Building 54 Luxury Town Homes 300 Residential Apts. Residential Apartments Matawan, NJ New York, NY Livingston, NJ Asbury Park, NJ NJ

Barclays Bank Key Bank AIG NYCB Israel Discount Bank $25,000,000 $31,518,000 $93,000,000 $15,500,000 $2,250,000

Office Building 60 Single Family Homes 1,032 Residential Apts. 105 Residential Apts. Land Acquisition & New York, NY Riverhead, NJ Plainsboro, NJ Harlem, NY Development Lacey Township, NJ

AIG NYCB M&T Bank NYCB AIG $15,000,000 $15,558,000 $17,000,000 $2,445,000 $19,400,000

Residential Apartments 142 Residential Apts. The Beacon School 22/240 W. 149th Street 308 Residential Apts. NJ Harlem, NY New York, NY New York, NY Neptune, NJ

Bank of America AIG NYCB Independence AIG $16,000,000 $9,250,000 $7,500,000 $4,520,000 $10,800,000

48 Manor Homes 140 Residential Apts. 90 Residential Apts. 75 Residential Apts. 100 Residential Apts. Colts Neck, NJ South River, NJ Harlem, NY Harlem, NY Summit, NJ

AIG Valley National Bank $7,000,000 $485,000

220 Residential Apts. Construction Loan Allentown, PA KUSHNER Phase II COMPANIES Asbury Park, NJ

18 Columbia Turnpike, Florham Park, New Jersey • 26 East 64th Street, New York, NY • KushnerCompanies.com REPORT REAL ESTATE

2007 No. of assessment No. of city businesses budget1 blocks in located in Year Rank BID Phone/Web site Top executive (in thousands) district district established Services provided Geographical boundaries

Washington Heights District (212) 928-3400 Vincent Apisella $517.4 20 365 1983 Supplemental sanitation, 181st St. between Amsterdam Ave. and 17 Management Association Inc. www.washingtonhgtsbid.org Chairman economic development Fort Washington Ave.; St. Nicholas Ave. 1456 St. Nicholas Ave. workshops/seminars, holiday between 183rd and 179th St.; Broadway New York, NY 10033 lighting, marketing and between 182nd St. and 179th St. promotion Village Alliance (212) 777-2173 Martin Dresner $509.0 14 300 1993 Supplemental sanitation and Eighth St. between Second Ave. and Sixth 18 8 E. Eighth St. www.villagealliance.org President graffiti removal, supplemental Ave., including Astor Place; Sixth Ave. New York, NY 10003 safety officers, marketing and between Eighth St. and Fourth St. promotion, capital improvements Fordham Road (718) 562-2104 Wilma Alonso $500.0 16 300 2005 Sanitation, marketing and East Fordham Road between Third Ave. 19 2530 Grand Concourse www.fordhamroadbid.org Executive director promotions, capital and Jerome Ave. Bronx, NY 10458 improvements, business advocacy and assistance NOHO NY (212) 677-4579 Harriet Fields $490.0 19 110 1997 Security, sanitation, graffiti Houston St. to Astor Place, from east side 20 666 Broadway www.nohony.org Executive director removal, marketing of Mercer St. to east side of Lafayette St. New York, NY 10012 HUB Third Avenue (718) 665-3983 Mario De Giorgio $400.9 8 117 1988 Security, sanitation, holiday Third Ave. between 153rd St. and 148th 21 384 E. 149th St. — President lighting, sale promotions and St.; Willis Ave. from 149th St. to 148th Bronx, NY 10455 street festivals St.; Westchester Ave. from Bergen Ave. to Third Ave.; Elton Ave. from Third Ave. to 180 feet north of 153rd St.; 149th St. between Third Ave. and Bergen Ave. Dumbo Improvement District (718) 237-8700 Tucker Reed $400.0 20 550 2006 Sanitation, capital projects, East of Old Fulton St., west of Bridge St., 22 111 Front St. www.dumbonyc.org Executive director marketing seminars, lobbying and north of York St., south of John St. Brooklyn, NY 11201 advocacy 47th Street (212) 302-5739 Doreen Greenidge $331.4 1 2,600 1997 Security, promotions, sanitation, 47th St. between Fifth Ave. and Sixth Ave. 23 580 Fifth Ave. www.diamonddistrict.org Executive director capital improvements New York, NY 10036 maintenance Flatbush Avenue (718) 859-2600 Edgar Henry $314.5 11 250 1990 Security, sanitation, banners, Flatbush Ave. between Parkside Ave. and 24 1616 Newkirk Ave. www.flatbushavebid.com President promotions Cortelyou Road Brooklyn, NY 11226 Downtown Flushing Transit HUB (718) 888-1805 Mabel Law $304.0 15 1,000 2003 Sanitation, holiday lighting, Main St. from Northern Blvd. to Sanford 25 39-01 Main St. www.flushingbid.com Executive director promotion, capital projects Ave.; Roosevelt Ave. from Union St. to Flushing, NY 11354 Prince St.; Kissena Blvd. from 41st Ave. to Sanford Ave.; 40th Road from Main St. to Prince St.; 39th Ave. from Main St. to College Point Blvd. Sources: Assessment budgets were provided by the Department of Small Business Services. All other information was provided by the BIDs. Additional research by Denise Southwood and Adrianne Pasquarelli, with contributions from Sarah Studley. New York City includes the Bronx, Brooklyn, Manhattan, Queens and Staten Island only. Crain’s New York Business uses staff research, extensive surveys and the most current references available to produce its lists, but there is no guarantee that the listings are complete. To qualify for this list, business improvement districts must be located in New York City. n/a Not available. 1-Fiscal year ending June 30. 2-BID estimate.

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30 | Crain’s New York Business | January 15, 2007 REPORT REAL ESTATE

Dubai buyer sets records LARGE APPETITE Buildings bought by Istithmar. for Manhattan purchases Date Price Sq. ft. 230 Park Ave. In $3 billion spree, Istithmar fans market, $2.4 billion in investments, or 56% (Helmsley Building) Nov. 2005 $705 million 1.2 million of the Middle Eastern total. Istith- 280 Park Ave. June 2006 $1.2 billion 1.2 million controversy; payoff may be years away mar by itself accounted for 12% of the money spent on all office build- 450 Lexington Ave. Spring 2006 $600 million 910,000 Pacific Rim and Australia, accord- ings and hotels in the city from Jan.1 1466 Broadway June 2006 $300 million 298,000 BY HILLARY CHURA ing to Real Capital Analytics. through Nov. 15, 2006. 1 2 “Not since RFR Realty’s acquisi- Mandarin Oriental Dec. 2006 n/a 259,000 seven months ago, a little-known Major portion tions of the Seagram Building [375 W Union Square Oct. 2006 $285 million 250,000 firm named Istithmar stunned the istithmar, which means “invest- Park Ave.], Lever House [390 Park n/a Not available. 1-Majority stake. 2-Deal not yet closed. real estate community by agreeing ment” in Arabic, accounted for See DUBAI on Page 32 to pay $1.2 billion for a 40-some- thing-year-old pair of nondescript office buildings at 280 Park Ave. The deal marked the first time in New York history that office space had fetched over $1,000 per square foot. Four months later, Istithmar set another record,paying $285 mil- lion for the W Union Square—the first time that anyone had paid in ex- cess of $1 million per room for a New York hotel. For Istithmar, the deals were business as usual. In just over a year, the company, which is controlled by the fabulously wealthy royal fam- ily of Dubai, has splashed out over $3 billion on office buildings and ho-

THE W UNION SQUARE fetched more than $1 million per room when it was sold.

tels in the city.That aggressive buy- ing has fanned the flames beneath an already white-hot market and has left many industry insiders wonder- ing how the company can possibly make any money on its new prizes. Able to wait “istithmar is probably expecting a bit of negative leverage [at the out- set], but it anticipates rents will grow,” says Jonathan Geanakos, a principal at Trammell Crow Co. “Because of their very long invest- ment horizon, they have the ability to wait for this growth.” Other Middle Eastern players are among those placing similarly aggressive bets. As a group, they have been among the top three for- eign buyers of properties here in each of the last five years. Last year, the Middle Easterners did better, snatching up $4.4 billion worth of property,enough to put them in first place,ahead of buyers from both the

January 15, 2007 | Crain’s New York Business | 31 REPORT REAL ESTATE Dubai buyer shatters records in Manhattan

Continued from Page 31 invest in real estate in gateway cities Dubai Investment Group. ended up buying the Times Square Ave.], 757 Third Ave. and others around the world. Like everyone else,Istithmar does skyscraper for $1.3 billion. have we seen one firm with such a not end up buying everything on David Schaiman, managing di- hearty appetite for the Big Apple,” Sizable portfolio which it bids. A deal for 1.1 million- rector of brokerage Sonnenblick says Marc Miller, president of Mil- to date, the company has assem- square-foot 5 Times Square, for ex- Goldman, says he expects Istithmar ler & Partners Ltd., a New York- bled a portfolio of three office build- ample, fell apart in the middle of last to buy another two high-quality based commercial real estate bou- ings, two hotels and an office build- year. The 37-story tower was being Manhattan hotels and possibly a tique. ing it plans to convert back to a offered by Boston Properties as part few more office buildings before it is Istithmar officials declined to be hotel. Those acquisitions follow on of a package that included the two done. interviewed for this story, but in the the heels of the $440 million pur- towers at 280 Park Ave., but the ad- Observers agree that since Is- past they have said simply that they chase of the Essex House in the fall dresses ultimately were sold sepa- tithmar is investing for the royal 280 PARK AVE. went for $1.2 billion. are bullish on New York and keen to of 2005 by Istithmar’s sibling, the rately. AVR Realty Co. of Yonkers family—rather than for outside in- vestors, such as pension plans or in- surance companies—it can afford a longer-range view of the market. In fact, some analysts reckon that Is- tithmar may accept losing money on its Manhattan real estate holdings for as long as a decade before rents ‘Petroleum recently closed money can fremont is proud to have closed the following loan be a little more patient’

creep up to the point where income on the buildings significantly out- The William Beaver strips the costs of owning them. Possible gain House alternatively, if Manhattan building prices continue to rise as New York,NY quickly as they have in recent years, Istithmar could always sell its build- ings and reap a quick capital gain. “Petroleum money can be a little more patient than pension fund money,”says Dan Fasulo,director of market analysis at Real Capital An- $247,000,000 alytics. “Sometimes when people Construction Loan look out 20 years, it allows them to be more aggressive in their assump- tions, which leads to them winning more deals.”

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32 | Crain’s New York Business | January 15, 2007 Building Upon 80 Years of Success

GVA Williams is positioned to provide more Real estate strategists have joined the We have launched new services: real estate advisory services to more clients. GVA Williams team: Project Management We have expanded our organizational Mark Jaccom Consulting Services depth through strategic recruitment and President, Tenant Representation Division infrastructure enhancements. Brian Feist GVA is also proud to recognize our Top Producers for 2006: Senior Managing Director Mark Friedman Ted Rotante Martin Meyer Senior Managing Director Robert Sass Joyce Geiger, CRE Senior Managing Director Robert Tunis Michael Joseph Michael DeJohn, RA Project Management 1.888.GVA.9455 • www.gvawilliams.com 1.888.GVA.9455 REPORT REAL ESTATE SWELLING INVENTORY Unsold Manhattan apartments Condo builders butter up brokers as of the end of the third quarter. Offer prizes, parties, tower. But instead of the usual im- tate trade publications, are designed with everything from prizes, parties 2001 5,609 ages of marble-clad bathrooms and to lure brokers, not buyers. The and perks to cold cash. 2002 6,663 cash as market slows, sweeping views, ads for 45 Park fea- building’s owner, SJP Residential “We’re their major source of buy- ture the brokers who are selling Properties, makes that point abun- ers, and they’re schmoozing all the 2003 5,104 buyers get choosier those packages. dantly clear on the on the very next way,” says Sonia Stock, a Prudential One ad features the smiling face page.There,in enormous black type, Douglas Elliman broker, who was 2004 5,391 BY DEAN STARKMAN of Halstead Property broker Julia the message reads:“5% commission.” featured in a similar ad. 2005 6,268 Jaing and her story of satisfied West In a residential property market SJP Residential has plenty of at first glance, the glossy, full- Coast clients. “I showed them 45 suddenly gone slack, developers can company. The owner of 123 Baxter 2006 8,118 color, full-page ads for 45 Park Ave. Park Ave.,” says Ms. Jaing in the ad. no longer afford to simply sit back St.,American Development Group, Source: Miller Samuel Real Estate Appraisers look like countless others trying to “From the moment they saw it, they and wait for brokers to bring buyers last year offered a BMW as a sales drum up buyer interest in yet anoth- fell in love.” to their door. Instead, developers incentive.Millennium Partners,de- er deluxe Manhattan condominium The ads, which appear in real es- now routinely woo the selling class veloper of several luxe properties, is offering trips to Miami. Mean- while, 20 Pine St. developer Leviev Boymelgreen has enlisted singer John Legend to perform at parties for brokers. “These are all ways of saying,‘We need you. We want you. We respect Jones Lang LaSalle your reputation,’ ” says Louis Phil- lips Forbes, a Halstead senior vice Building Value in Every Relationship president. Aggressive response Ours is a culture focused on people—our track record of building and sustaining long-term relationships is a while not exactly pushing the panic button, developers are re- testament to our unwavering commitment to create lasting value for our clients. sponding aggressively to a cooling market as new units pour onto the Jones Lang LaSalle is proud to have partnered with New York clients such as these over the past year. block. At the end of the third quar- ter, the number of units listed on the Manhattan market jumped to more than 8,000—up from about 5,000 in the third quarter of 2004. Mean- while, the average number of days apartments linger on the market climbed to more than 150,compared with about 100 days during the same period in 2005, according to Miller Samuel Real Estate Appraisers. Developers say that brokers’ im- portance always rises in a slowing market as walk-in traffic dries up and buyers become choosier and more aggressive in bargaining. But many of today’s crop of developers simply were not around in the last Leasing Capital Markets Headquarters down cycle in the early 1990s. That ABN Amro with a new 140,000 s.f. The Benetton Family for the $79 Bank of America for the 522,000 s.f. inexperience is making them more lease at 7 World Trade Center and million sale of the Scribner Building expansion of its headquarters at Bank likely to do whatever it takes to grab the disposition of 150,000 s.f. at at 597 Fifth Avenue of America Tower at One Bryant Park sales. Park Avenue Plaza Some owners increasingly find themselves turning to firms such as IBM on the 610,000 s.f. disposition MetLife in its headquarters relocation Marketing Directors Inc., which Boston Properties with agency of 1133 Westchester Avenue in to 410,000 s.f. at 1095 Avenue of the specializes in marketing residential leases of 195,000 s.f. at Citigroup White Plains Americas development through brokers. Center, achieving 100% occupancy Marketing Directors has seen a Thor Equities, LLC on a $363 million Jones Lang LaSalle Hotels sharp uptick in its business lately as HSBC in the acquisition and project refinancing for a 1,639-key hotel The Blackstone Group on the developers shift their sights up- management in the build-out of a new disposition of a seven-hotel portfolio stream and focus more effort on bro- data center in New Jersey Project and Development kers to drive traffic. “Owners need to keep their face Management Services Istithmar on the acquisition of in front of brokers every single day,” LCOR in a new agency leasing The Apollo Theater Foundation Inc. 6 Times Square, formerly the says Adrienne Albert, the firm’s assignment for 545 Madison Avenue as project manager overseeing the Knickerbocker Hotel president. restoration of the Apollo Theater In the contest for brokers’ atten- Mastercard, Inc. in a long-term tion, some developers are now play- commitment to 51,000 s.f. at Property Management ing their trump cards:cash.They are 100 Manhattanville Road in Purchase United Nations Development Corp. offering 1 percentage point of their in a new management agreement for commission at contract signing, in- stead of making brokers wait Microsoft in its 80,000 s.f. expansion 1, 2 and 3 UN Plaza months for a closing. at 1290 Avenue of the Americas Brokers have even noticed a dif- Advisory Services ference in tone. Prudential Douglas Mutual of America Life Insurance Roosevelt Island Operating Corp. For information contact Elliman Vice President Victoria at 320 Park Avenue, achieving 100% in a ground lease and a master +1 212 812 5700 Shtainer says that a couple of years www.joneslanglasalle-newyork.com occupancy with agency leases of development agreement involving ago, brokers sometimes found 103,000 s.f. 2,160 units of housing themselves locked out of hot new developments. No more. “Now, you can get an appoint- Wachovia Securities in subleasing Major financial institution for advisory ment right away,” she says. “And 221,000 s.f. at 199 Water Street and occupancy strategy they’re really nice to you.”

©2007 Jones Lang LaSalle IP, Inc. All rights reserved. COMMENTS? [email protected]

34 | Crain’s New York Business | January 15, 2007 Our pride.

JPMorgan Real Estate Funds 2006 $1.15 billion 5 hotels, residential complex, student housing facilities; 5 retail centers; 20 office properties

Broadway Partners CBRE Realty Finance 2006 2006 $4.7 billion - 9.5 million sf $139 million equity 14 office properties Finance REIT IPO

Brickman Douglas Emmett Inc. 2006 New Plan 2006 $321 million 2006 1 million sf $293 million - 2.1 million sf $1.6 billion equity 11 retail centers Office REIT IPO 8 office properties

U-Store-It Trust Trizec Properties Inc. 2006 2006 $363.2 million $8.9 billion - 26 million sf 60 storage facilities Privatization of public Office REIT

Gale Real Estate Services/Rockefeller Group Development Corp 2006 484-acre site for New York Jets headquarters, 830k sf of office space, residential complex & hotel Their glory.

We’re proud to have played a key role in these significant 2006 transactions totaling over $17 billion. Credit goes to our clients who recognized an opportunity when they saw it and seized it. As a national firm dedicated 24/7 to real estate and finance, SMG is pleased to be a leading advisor to these industry leaders.

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LOEB & LOEB space—but it’s is pleased to announce that MARK A. SHAPIRO still Jersey City Partner Class A space average about $40 a has joined our New York Real Estate Group. Area can’t overcome square foot. Mr. Shapiro rejoins his colleagues in the Commercial Real being perceived as Though that figure is up 20% Estate Leasing Group, Ray Sanseverino, Rich Nardi and from a year ago, it’s only $8 more remote; bargain- than what landlords like Mr. Ken Sold, who came to Loeb & Loeb in August 2006. hunters go downtown Lefrak and Harborside owner Mack-Cali Realty Corp. are asking Loeb & Loeb’s commercial leasing team regularly represents landlords and for space in Jersey City. The gap is tenants in complex leasing transactions, including net leasing, ground leasing BY LAURA KOSS-FEDER narrowed further by savings on and subleasing, commercial office leasing and retail leasing. The team also has commercial rent tax and sales tax, extensive experience with a myriad of real estate brokerage issues and has regularly richard lefrak, chief executive of employee relocation benefits and served as counsel to real estate brokerage companies. Manhattan-based developer The other incentives available to down- Lefrak Organization Inc., has an town tenants. Loeb & Loeb’s Real Estate Group provides a broad range of sophisticated legal answer for all those companies fed and counseling services and involves commercial, multifamily, office, industrial, up with Manhattan’s soaring rents. Viable alternative hospitality and residential properties throughout the country and abroad in the The answer is a place where acres landlords on the western bank of following types of matters and transactions: acquisitions and sales; joint ventures; of state-of-the- the Hudson also continue to face a REITs; leasing; development; litigation; finance; environmental; and tax/1031 Suburban art Class A space perception problem. exchanges. Real can be had for Even though unsightly holes in Estate rents that average Jersey City’s landscape have been January 2007 under $32 a filled by 7.7 million square feet of square foot, a place that is about as office space over the past decade, www.loeb.com close to Manhattan anyone can get many workers still regard the area Los Angeles New York Chicago Nashville without actually be- as unappealing and ing there: Jersey isolated. City, N.J. JERSEY CITY’S “For those who Though Mr. OPEN ARMS live in the city, com- LeFrak’s arguments muting to Jersey Vacancy rates for Class A sound persuasive, office space. City on the PATH the response to them train is a long, slow has been profoundly ride,” says Richard underwhelming. 3Q 2000 0.3% Economou, a senior Despite mid- vice president for town’s huge run-up 3Q 2001 5.7% the Equis Corp., a in rents and steep Manhattan com- drop in vacancy rates 3Q 2002 18.4% mercial real estate over the past three firm.“It’s not as con- years, 2.6 million 3Q 2003 13.0% venient and as fast as Congratulations! square feet of prime the subway,”he says. property remains on 3Q 2004 17.5% Businesses that The Partners, Brokers and Staff at the market in Jersey choose to relocate City. 3Q 2005 from New York risk Massey Knakal Realty Services That translates 19.0% major staff defec- to a 15.8% vacancy 3Q 2006 tions, says Peter Co- Proudly Congratulate Our Founding Partner rate as of September, 15.8% hen, director of gov- according to Tram- Source: Trammell Crow Co. ernment services for mell Crow Co. commercial broker- Deals that were age NAI James E. Paul J. Massey sealed late last year, including Hanson Inc. Deutsche Bank’s lease of 280,000 Longer term, apartment con- On Being Honored with REBNY’s Prestigious square feet at Harborside 1, show struction is one of the things that’s that Jersey City has appeal for bar- likely to help Jersey City.In the past Louis Smadbeck Memorial Broker Recognition Award gain-minded tenants. five years,11,589 condominium and For His Contributions to the Industry and Community The new leases have also eaten rental units have been completed into inventory a bit. But brokers there, and about 19,000 are being don’t see such scattered transactions built or have been approved for con- turning into a massive land rush struction. anytime soon. “This new housing will help lead to office vacancy rates coming Strictly overflow down,” says Mr. Cohen, who is “jersey city is fundamentally de- based in Hackensack, N.J. Realty Services fined as a release-valve market for That is certainly Mr. LeFrak’s New York City’s #1 Investment Sales Firm Manhattan,” says Gregory Scott, a hope. In the past 20 years, his firm senior vice president at Trammell has completed 5 million square feet Crow. of office space and more than 4,000 Mr. Scott estimates that the rent housing units in Jersey City. differential between Manhattan “No company that really wants to and Jersey City has to be over $12 a be on 57th Street and Fifth Avenue square foot for firms to feel com- is going to come to Jersey City,” Mr. www.masseyknakal.com pelled to move across the Hudson. LeFrak says. “But it is a viable, Jersey City’s rents are a fraction strong market attracting more and of midtown’s, but most businesses more smaller companies.” fleeing those prices go no farther than downtown, where rents for COMMENTS? [email protected]

36 | Crain’s New York Business | January 15, 2007 REPORT Tenants take aim on train stations

ing to Gregory Frisoli, senior direc- Easy access to city tor of Cushman & Wakefield’s is a must for firms Stamford office. Closer to the city,companies pay locating in suburbs; a lower—but still significant—pre- premium pricing mium for proximity to the White Plains train station. Rents near it reach $37 a square foot, compared BY LAURA KOSS-FEDER with $32 for space more than a mile away. executives at Barrow Street Capi- “The ability to quickly get to in- tal were tired of paying $95 a square vestors and clients in Manhattan is foot for office space on Park Avenue paramount,” Mr. Frisoli says. and eager to move to the northern suburbs, where several of them live. No vacancies There was, however, one important the typical tenant wants 3,000 caveat. to 5,000 square feet, according to Suburban “We have lots Robert Caruso, managing director Real of clients in the of CB Richard Ellis’ office in Estate city and employ- Stamford. ees who live in Few companies that are looking Manhattan,” says Nicholas Cher- for office space are willing to be mayeff, the real estate investment more than three or four blocks from management firm’s co-chief execu- the station. tive, who comes into Manhattan Demand in Greenwich has been two to three times a week for meet- so strong—particularly among ings. “We absolutely needed easy hedge funds—that the vacancy rate access to the city.” there has fallen to 3.5%. They found it at Metro Center in The scarcity in that market has Stamford, Conn. At $50 a square benefited the Stamford area as frus- foot, Barrow’s rent is high by subur- trated tenants turn to its larger sup- ban standards, but its 4,000 square ply of offices close to the station. feet of space has a major plus: The “I wish we had even more space front door is across the street from to offer in our buildings,” says Mar- the train station. garet Carlson, managing director of Equity Office Properties Trust, Walking distance which has 1.6 million square feet of in the past few years, a steady space within a mile of the Stamford stream of firms has helped drive the station. appeal of real estate within an easy Another beneficiary of the boom walk of Metro-North stations— in demand is W&M Properties. Its including those in Greenwich and four Stamford buildings, including Stamford Conn., and White the 276,000-square-foot Metro Plains, N.Y.—to new heights. Center, are completely leased. Nowhere is that more the case W&M Executive Vice President than in tony Greenwich,where such Jeffrey Newman sees Stamford’s space now fetches as much as $100 surging popularity as part of a a square foot. That is up from $60 broader trend. five years ago and more than double “As long as they can be near a the price of space even a short car Metro-North stop, these firms are ride from the station. now viewing the suburbs more and A few stops up the line, in Stam- more as sub-cities of Manhattan ford, the top rents of $50 a square without the higher price tag,” Mr. foot at buildings adjacent to the sta- Newman says. tion trail off to the low $30s for space in nearby office parks,accord- COMMENTS? [email protected] FOUND IN YONKERS AS TENANTS WARM TO THE IDEA of locating in accessible suburban space, even once overlooked areas like Yonkers are maneuvering to get in on the action. Westchester’s largest city has unveiled a $3.1 billion master plan to redevelop a broad swath of downtown. Ellen Lynch (right), president and chief executive of the Yonkers Industrial Development Agency, says one of the goals is to attract more companies. Among other things, the plan envisions offering 325,000 square feet of new or rehabbed office space in the next five years. The first phase of the three-part project is scheduled to begin this fall and to be completed in 2009. “We’re going to see a lot of development in Yonkers, in and around the train and the river,” Ms. Lynch says. “Easy train access is so important to these plans.”

January 15, 2007 | Crain’s New York Business | 37 REPORT 101 PARK AVENUE The New Ownership REBNY to honor of Quik Park

210 WEST 89TH STREET Proudly Announces industry leaders the Acquisition of al sales of more than $1 billion. Group gives annual The chairman of REBNY’s awards to 6 execs commercial board of directors, Mr. 4 Premium Locations Massey also sits on the commercial at notable firms brokerage board and is a member of the ethics and business practice, in- he real estate board of terfirm forum (residential), sales Call Quik Park today. New York will honor these brokers and retail stores subcom- Our 30 years of experience Tsix industry professionals at mittees. its annual banquet on Jan. 18. guarantees you: AWARD George M. Brooker AWARD Bernard H. Mendik Management Executive Lifetime Leadership in Real of the Year > Higher Garage Earnings Estate RECIPIENT JEFFREY I. BRODSKY

235 WEST 22ND STREET RECIPIENT DANIEL BRODSKY TITLE President, Related > State of the Art Security TITLE Partner, The Brodsky Management > Organization CREDENTIALS Mr. Brodsky, a Impeccable Interiors CREDENTIALS Mr. Brodsky, who member of REBNY’s > has served his family’s residential manage- Unparalleled Service real estate business for ment council, oversees over 35 years,is known all property manage- for his hands-on lead- ment activities as pres- 403 EAST 65TH STREET ership style and social- ident of Related Man- 212.832.2066 ly responsible business agement and executive practices. vice president of Related Affordable. Throughout his career,Mr.Brod- He sits on the boards of the Nation- Rafael Llopiz x200 sky has upheld the firm’s commit- al Housing Conference,the Nation- Stan Kleger x213 ment to develop affordable, attrac- al Leased Housing Association and tive spaces for all New Yorkers. He the Realty Advisory Board of New successfully campaigned to revise the York, and is a member of the Real 80-20 Rental Housing Tax-Exempt Estate Roundtable’s homeland se- Finance Program,which helped lead curity task force. to the proliferation of 80-20 proj- ects across the city. The organiza- AWARD Kenneth R. Gerrety tion currently manages more than Humanitarian 500 units of affordable housing. RECIPIENT ARNOLD FISHER TITLE Senior partner, Fisher AWARD Harry B. Helmsley Brothers Distinguished New Yorker CREDENTIALS Credited with RECIPIENT WILLIAM RUDIN some of New York TITLE President, Rudin City’s largest com- Management Co. mercial construction CREDENTIALS Mr. Rudin heads projects, Mr. Fisher is one of the city’s most also a civic and philan- prestigious real estate thropic leader. He firms. During his ca- chairs the board of THERE’S A NEW KID IN TOWN… reer, he has been in- trustees of the Intrepid Museum IBA, the country’s leading engineering and consulting firm that volved in such deals as Foundation and is vice chairman of specializes in the design, inspection, and repair of exterior Reuters’ new North the Fisher House Foundation. In envelope construction has opened a New York office. American headquar- 2005, he was named an Honorary ters; the conversion of AT&T’s Knight of the British Empire in Whether it’s new construction or the investigation and headquarters; and the 55 Broad recognition of his contributions to repair of existing buildings, we have the experience and Street project,which revolutionized the families of fallen military per- capabilities to identify and eliminate potential failures and the lower Manhattan office land- sonnel. existing problems in exterior wall cladding, glazing, roofing, scape and ignited diversification of and waterproofing systems. the area’s tenant base. AWARD Young Real Estate Man Mr.Rudin is chairman of the As- of the Year Call us any time for QUALITY consultation, inspection and sociation for a Better New York and RECIPIENT VINCENT TERRANOVA repair every time. vice chair of REBNY’s executive TITLE Executive vice president and committee. He also lectures at edu- principal, Bernstein Real Estate cational institutions and is involved CREDENTIALS Mr. Terranova is in numerous political, civic and responsible for the philanthropic endeavors. daily oversight of Bernstein’s commer- AWARD Louis Smadbeck Broker cial brokerage, man- IBA CONSULTING AND ENGINEERING, PLLC Recognition agement and opera- 299 BROADWAY, SUITE 1605 | NEW YORK, NY 10007 RECIPIENT PAUL J. MASSEY JR. tions divisions. In his P: 212.232.0224 | F: 212.232.0288 TITLE Founding partner, Massey 20 years with the firm, INNOVATIVE WWW.IBACONSULTANTS.COM Knakal Realty Services Mr.Terranova has been a key figure BUILDING AND CREDENTIALS Mr. Massey is the in securing management and leas- ARCHITECTURE BOCA RATON | MIAMI | TAMPA BAY | PENSACOLA co-founder of one of ing assignments for more than 2.5 CONSULTANTS LAS VEGAS | SEATTLE | NEW YORK New York’s largest million square feet of commercial investment property property. FUI07-02 sales brokerage firms. He sits on REBNY’s loft and The company, which secondary office building commit- employs 100 sales pro- tee and is a member of the Young fessionals and serves Men’s and Women’s Real Estate 200,000 property owners,has annu- Association of New York. ■

38 | Crain’s New York Business | January 15, 2007 2006 WX Thanks Our Sponsors REPORT REAL ESTATE for their Support

Gold Cushman & Wakefield Thornton Tomasetti

Silver Brookfield Properties CB Richard Ellis, Inc. Robert A.M. Stern Architects

White BBG-BBGM Bovis Lend Lease Chicago Title Insurance The Clarett Group Forest City Ratner Companies Fried, Frank, Harris, Shriver & Jacobson LLP Hines nycinpictures.com ING Clarion 7 World Trade Center 100 Church St. 60 Broad St. 805 Third Ave. Jaros Baum & Bolles Jones Lang LaSalle Americas, Inc. JP Morgan Asset Management KPMG, LLP COSTAR’S LARGEST BLOCKS OF OFFICE SPACE Lehman Brothers Morgan Stanley Biggest contiguous spaces available in Manhattan NYU Real Estate Institute The Rockefeller Group Building address/ Total available submarket square feet Leasing company Landlord/sublandlord Available date RREEF Skidmore Owings & Merrill, LLP 1, 2 532-582 Washington St. 1,123,651 Eugene M. Grant & Co. Eugene M. Grant & Co. Oct. 2007 Thornton Tomasetti 1 Hudson Square VVA, LLC 7 World Trade Center 829,175 CB Richard Ellis Silverstein Properties Inc. Vacant, Feb. 2007 2 World Trade Center Friends 229 W. 43rd St.3 768,243 Tishman Speyer Tishman Speyer Jan. 2008 Cermak Peterka Petersen Inc. 3 Times Square and April 2008 Colliers ABR 1095 Sixth Ave. 761,363 CB Richard Ellis Equity Office Properties Trust July 2007 Haley & Aldrich, Inc. 4 Penn Plaza/Garment and Feb. 2008 Langan Engineering 100 Church St.3 661,371 The Sapir Organization The Sapir Organization Vacant Park Tower Group 5 World Trade Center Pasanella + Klein Stolzman + Berg Architects 380 Madison Ave. 559,115 CB Richard Ellis Solow Building Management Vacant Pelli Clarke Pelli Architects 6 Grand Central REBNY 3, 4 Spacesmith 75 Varick St. 550,128 Trinity Church Trinity Church Real Estate/ Vacant/arranged, 7 Hudson Square Morgan Stanley Feb. 2007 and April 2007 WX Extends a Special Thank You 95 Wall St. 522,314 Cushman & Wakefield Inc. The Moinian Group Vacant 8 Financial District Turner Construction Company – Cocktail Reception Sponsor Goldstein Associates, PLLC – Dessert & Champagne Sponsor 345 Hudson St.3, 4 483,620 Trinity Church Trinity Church Real Estate/ Vacant/arranged, 9 Hudson Square Print International Feb. 2007 60 Broad St.4 478,898 Cogswell Realty Group Wells Real Estate Investment Funds Vacant/arranged, 10 Financial District Dec. 2007 1271 Sixth Ave.5 452,039 Studley Time Inc. July 2007 11 Columbus Circle 340 Madison Ave. 422,470 Cushman & Wakefield Inc. Broadway Partners Vacant Newmark Knight Frank 12 Grand Central is pleased to to announce that 330 Hudson St. 418,445 Trinity Church Trinity Church Real Estate Vacant 13 Hudson Square 25 Broadway 417,208 CB Richard Ellis Acta Realty Vacant 14 World Trade Center 14 Wall St. 370,665 Newmark Knight Frank Leviev Boymelgreen Developers Vacant/arranged 15 Financial District 120 Broadway 351,764 Silverstein Properties Inc. Silverstein Properties Inc. Vacant 16 Financial District & California State Teachers’ Retirement System 601 W. 26th St.2 332,920 601 West Associates 601 West Associates Vacant 17 Chelsea 805 Third Ave. 326,454 Cohen Brothers Realty Corp. Cohen Brothers Realty Corp. Vacant/July 2007 18 Plaza District and July 2008 1800 Park Ave.6 317,304 Plymouth Partners Ltd. Plymouth Partners Ltd. Vacant 19 Harlem/North Manhattan Merrill L. Roth 1166 Sixth Ave.4 315,108 Cushman & Wakefield Inc. Cushman & Wakefield Inc. Jan. 2007 has joined Newmark Knight Frank as 20 Times Square and Jan. 2008 5030 Broadway 3 305,290 Executive Workspace Executive Workspace Vacant Vice Chairman and Principal Harlem/North Manhattan 21 at the firm’s New York headquarters 9 W. 57th St. 262,250 CB Richard Ellis CB Richard Ellis Vacant 22 Plaza District 7 Hanover Square 5 237,276 MB Real Estate MB Real Estate Arranged 23 Financial District 1 Bryant Park 6 235,901 The Durst Organization The Durst Organization Feb. 2008 24 Times Square Merrill L. Roth 605 E. Ninth St.2 228,000 Singer Financial Corp. 9th & 10th Street LLC Vacant 25 Greenwich Village 125 Park Avenue New York, NY 10017 Data are as of Dec. 31, 2006. Spaces are Class A spaces available directly through the building owner unless otherwise noted. 1-Includes 831,651 square feet and additional potential roof expansion space of 292,000 square feet. 2-Class C space. 3-Class B space. 4-Combination of direct and sublet space. 5-Sublet space. 6-New space. 212.372.2316 CoStar Group Inc., a provider of information services to the U.S. and U.K. commercial real estate industries, offers customers access via the Internet to the most comprehensive [email protected] verified database of commercial real estate information on 66 U.S. markets and the United Kingdom. For more information, visit www.costar.com or call (877) 7COSTAR. REPORT REAL ESTATE Q&A Forecasts from five New York HOWARD FIDDLE BARRY M. GOSIN JOSEPH R. HARBERT KEN KRASNOW PETER RIGUARDI Vice chairman, Chief executive, Chief operating officer, New York Director of tristate brokerage, President, New York real estate experts CB Richard Ellis Newmark Knight Frank metro region, Cushman & Wakefield Trammell Crow* office, Jones Lang LaSalle

office rents will increase by the escalation in rents will demand for manhattan office rents are a factor of rents will continue to rise. Q After the giddy about 10% in Manhattan. moderate. The reluctance of office space is growing at a supply and demand, and The number of tenants seeking run-up in office rents While that prediction may companies to imbed healthy pace, and supply is demand is still strong. quality space will outpace sound modest, keep in mind significantly higher occupancy lagging. That’s a recipe for Therefore, as available space availability in 2007, especially in 2006, what do you that the market experienced costs into their cost structures more rent increases. continues to shrink, pricing will in midtown, and most rents will expect them to do in tremendous office rent growth for the next 10 years or longer is increase accordingly. begin in the $70s. during 2006. prompting them to look for 2007? alternative site locations.

anything that has an adverse the odds of a recession are still we’ll keep our eyes on Wall if rents continue to move to a dramatic downturn that Q What are the biggest impact on the number of office well under 50%. But a delay in Street and overall job growth pre-9/11 highs, we will see shocks the financial services risks in this market? workers, such as a sudden lowering interest rates caused for any clear signs of long-term many entrepreneurial, small to community, causing it to place downturn in the financial by a run-up in inflation or a trouble, which would impact midsize companies leaving sublease space on the market, services industry. new spike in oil prices could both the regional economy and Manhattan. would reverse current trends. push the economy into one in the demand for office space. But if the economy simply 2007, reducing the demand for slows or softens, the commer- space. cial real estate market is likely to remain strong in 2007.

assuming that the Department the vacancy rate in New a look back at the past 12 midtown and midtown south, vacancy rates for trophy Q Vacancy rates are of Labor’s forecast of 18,000 York City is likely to reach months shows a decline of 3 with vacancy rates of about 5%, buildings have already matched headed toward their new jobs created per year is bottom in 2007. Limited new percentage points. If we repeat are already basically there. those from the previous market lows of six years ago. accurate, we should reach the supply this year will keep the that rate of growth, we would Downtown, which has a 10% peak, and by the end of the low rate of vacancy last seen in rate close to the current level. hit new lows for vacancy rates vacancy rate, will depend on second quarter of 2007 we will When will they get 2000 in another four years. in the first half of 2008. leasing activity at the Freedom see other parts of the office Tower site. market with record-low there? availability.

the market will be driven by the new york market relies today’s market is being sustained—albeit modest— new companies are locating Q What forces will drive the continued strength of the on the high-end financial driven by strong demand for employment growth across the here to take advantage of a the market? financial services industry, the services sector for continued large blocks of space, which are financial and legal sectors, labor pool that is the nation’s continued consolidation of the growth in demand. Higher extremely hard to come by.The coupled with the lack of supply best, and others are expanding legal industry, and companies’ interest rates or a recession largest tenants, primarily from and limited new construction, here. This is a significant shift unabated desire to do business would jeopardize that industry. the financial services and legal will continue to drive from the mid-1990s, when in New York City. industries, are competing for Manhattan’s office market. companies mistakenly thought space and will continue to bid they could locate in lower-cost up rents. cities and still access top talent.

overall, there are no bargains. the historically high a bargain is a relative concept. the best bargains will class b buildings in the West Q Where are the best It’s clearly more expensive to do market price of properties But for tenants in the market continue to be in the downtown 30s and West 40s offer the best bargains? business in New York, yet cost relative to cash flow is for premier, Class A space, market, where there is still a deals for tenants and investors. remains a minor hindrance something that is occurring in perhaps the most 40% difference in pricing from because of the outstanding most major international cities. underappreciated area of midtown. The outer boroughs access to intellectual capital. Bargains may not exist, but in midtown is the Penn Station and Jersey City offer terms of sustaining value, high- area. compelling values as well. quality buildings may still be the best bet.

over the past 25 years, there the gap will most likely persist the gap will remain about it will continue to widen as rents may go up or down, but Q What will happen has been a 26% gap between until there is greater similarity where it is today.The midtown rents move closer to the gap between midtown and to the gap between midtown and downtown office in the stock of space in the two downtown market has ready $100 a square foot. downtown will endure until rents on average.The difference markets, including residential alternatives in Brooklyn and lower Manhattan is trans- midtown and downtown is currently close to 60%. We and retail properties. Jersey City, which will act as a formed by the redevelopment of rents? will see this rent disparity begin relief valve there, just as *Trammell Crow was purchased in the World Trade Center, the to revert back to the historical downtown does for midtown. December by CBRE, which has not yet memorial and the new figure. defined Mr. Krasnow’s role. transportation facilities.

40 | Crain’s New York Business | January 15, 2007 REPORT REAL ESTATE

Seagram Building, at 375 Park Ave. Deals The deal was especially attractive for Aby Rosen, the landlord of both properties: He has put an existing Russian manufacturer on Madison tenant into the Lever House space and can lease the Seagram Building own shops and department stores landlord Madison 28 Associates. man & Friedman will move in dur- office for a higher rent. Mr. Rosen is Firm establishes overseas, but Paul & Shark also op- Asking rent was $40 a square foot. ing the second quarter. The 10,000- negotiating with several tenants for U.S. headquarters; erates a boutique on Madison Av- —elisabeth butler square-foot trophy space—the entire that space. enue and five others nationwide. 21st floor—has served as executive Cushman & Wakefield Inc. rep- park view for clothier Adams & Co., which represent- offices for London-based Unilever resented Hellman & Friedman. ed the tenant, searched for only a Topping out since Lever House was built in 1951. Unilever moved out of the 20th he owner of the world’s few months.“They were looking for at Lever House The asking rent at the property, and 21st floors at the Lever House largest aluminum mak- more of a creative area and a cooler at 390 Park Ave., between East 53rd last summer. GLG Securities leased er is opening an office location,” says Alan Bonett, an the top floor of the landmarked and East 54th streets,is $150 a square the 20th floor in a deal that closed in the United States. Adams broker who worked on the Lever House has been leased for the foot.Hellman & Friedman will relo- several months ago. Basic Element Inc., deal.GVA Williams represented first time. Private equity firm Hell- cate from 6,500 square feet at the —julie satow Twhich controls Russia-based manu- facturer Rusal, has signed a 10-year lease for 11,000 square feet at 660 Madison Ave. The building, between East 60th and East 61st streets, has an asking rent of $140 a square foot. Basic Element is the first new tenant at 660 Madison since Broad- 548,000 Square Feet Leased, 75 Deals in 2006 Swig Equities salutes the participating brokers and welcomes our new and expanding tenants

LIGHT STUFF: Russia’s biggest aluminum maker chose 660 Madison for its offices.

way Partners bought the tower last April for $216.5 million. Rusal is run by Oleg Deripaska, one of Rus- sia’s wealthiest people, with assets 900,000 square feet 400,000 square feet 324,000 square feet 350,000 square feet 320,000 square feet 400,000 square feet estimated at more than $14 billion. “We have expanded with exist- ing tenants, but this is our first out- side tenant,” says Jonathon Yormak, Broadway Partners’ chief operating officer.The firm plans an $8 million 80 BROAD STREET 90 BROAD STREET renovation of the building’s lobby, 20 Deals–118,000 SF 18 Deals–93,000 SF elevators and common spaces. The 21st-floor office, which boasts a terrace, will serve as Basic Element’s headquarters. “They wanted a space that will make a mark,and it helped that the landlord 110 WILLIAM STREET 450 SANSOME 5 HANOVER SQUARE was very amenable,” says Alexander 13 Deals–175,000 SF (San Francisco) 11 Deals–80,000 SF Chudnoff, a broker at Cushman & Wakefield Inc., which represented 7 Deals–34,000 SF the tenant. CB Richard Ellis repre- sented the landlord. —julie satow 44 WALL STREET 48 WALL STREET Italian clothier 3 Deals–28,000 SF 3 Deals–20,000 SF makes bella figura italian apparelfirmPaul & Shark is relocating its U.S. headquarters to a 6,900-square-foot showroom Inquiries: Todd E. Korren overlooking Madison Square Park. It recently signed a 12-year lease for 212.508.7276 • [email protected] 79 Madison Ave., at East 28th Street. Paul & Shark, which makes sportswear,will probably move from its offices in the Crown Building, at 730 Fifth Ave.,by the end of March. swigequities.com The new site is twice as big as the current one. Most of the firm’s sales are in its

January 15, 2007 | Crain’s New York Business | 41 NEIGHBORHOOD JOURNAL Trader Joe’s hits snag in Queens

est neighborhoods remains largely later in the year. East 14th Street near Delayed store part on track. California-based Trader Joe’s Union Square, has been of area renaissance; “We’re trying to upscale the re- scouted locations in Queens for over mobbed since it opened

tail end of everything around here,” a year before it settled on the Forest last March. gettyimages S.I. building slump says Barbara Stuchinski, president Hills site,which is near a Home De- In November, the THE MANHATTAN STORE was an immediate sensation. of the Forest Hills Community and pot and a Sports Authority. The company announced that esidents of Forest Civic Association. “We have a Bor- grocery store, which specializes in it would open its second Hills,Queens,will have ders and an Amish Market, and discounted gourmet, ethnic and New York store in an abandoned target opening date until the second to wait a few more we’re trying to encourage these vegetarian items,will help shape the building at 90-30 Metropolitan Ave. quarter, but will not say why. months for the arrival types of stores.” new retail push for both the Forest in early 2007.Today,what is official- Construction stopped last week, of Trader Joe’s. But the She notes that a Century 21 De- Hills and Rego Park neighbor- ly known as the Heidelberg Building and a union picket line—not to Rgood news is that retail develop- partment Store is slated to open on hoods, Ms. Stuchinski says. is little more than a roofless shell. mention the union’s giant inflatable ment in one of the borough’s posh- Queens Boulevard and 63rd Street The city’s first Trader Joe’s, on Trader Joe’s says it has postponed the rat—appeared in front of the site. —hilary potkewitz Many factors weigh

101 HUDSON STREET, JERSEY CITY, NJ on S.I. construction housing observers are citing a host of reasons for last year’s surpris- ing 43% plunge in the number of Staten Island building permits—by far the steepest decline logged in any borough. According to city Department of Buildings data, the 826 permits is- sued for new buildings in Staten Is- land was easily its lowest total in the past decade and less than half the av- erage over the same period. One culprit was the midyear lapse in the 421-b tax abatement program, which resulted in higher taxes on houses whose foundations were completed after June 30. It’s just like Annual taxes on a $500,000 house in Staten Island typically be- being in New York. gan at about $1,000 with the abate- ment, which phased out over eight years. Without the break, the taxes Of course,the are $4,500. Builders are refraining from placing new homes on the awesome views and market until the inventory of tax- abated homes is depleted. business incentives “You can’t compete against a home with a tax abatement,” says will clearly remind Frank Naso, who heads the Naso Organization,a Staten Island devel- oper. “Why put a foundation in the you that you’re not. ground?” The borough’s inadequate road Let’s be clear. 101 Hudson Street is on the Jersey network and mass transit system City waterfront. But with that comes some pretty have also helped to put the brakes on development. “Staten Island lacks spectacular advantages. Things like tax breaks, the infrastructure that growth lower utility costs and a lower loss factor. You’ll needs, so it becomes less attractive,” also enjoy outstanding restaurants, shops and says Henry Salmon, a longtime real a luxury Hyatt hotel. But the real clincher estate appraiser and consultant at is that the office tower affords unrivaled Equity Valuation Associates. views of the Manhattan skyline. And it’s While many people fret that a re- just a 4-minute PATH ride to downtown. cession in the construction sector Of course, there is one more thing that could have severe economic reper- puts 101 Hudson Street over the top. It’s cussions, others see reason to cheer. our basic business philosophy that our “I think it’s good news,” says tenants come first. Call Mack-Cali for Councilman James Oddo. “We’re all the details and a clear picture of going from irrational development to everything 101 Hudson has to offer. something that’s much more sane.” He says some of the slowdown results from implementation of measures recommended by the Growth Man- agement Task Force—which he serves on—including new zoning rules that ban the construction of multiple buildings on a single lot. Others note that the decelera- tion is just part of a normal cycle. 101 Hudson Street, Jersey City, NJ www.101hudsonstreet.com “Pendulums swing, and I think 288,000 sq. ft. available for lease, including full floors. this slowdown will not last forever,” Contact: Tom Savoca, 201-261-0359 [email protected] Mr. Salmon says. “Staten Island is Christopher DeLorenzo, 201-986-1463 [email protected] still one of the cheapest places to live in the metropolitan area.” ©2006 Mack-Cali —erik engquist

42 | Crain’s New York Business | January 15, 2007

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Notice of Formation of DELI IP1, LLC, • SHORT AND LONG domestic Limited Liability Company (LLC). TERM RENTALS Notice of Formation of Advanced Solutions Articles of Organization filed with Secretary of 9/11: We Will Never Forget & Supply LLC, Art. of Org. filed Sec'y of Notice of formation of ISNYC Holdings, LLC. State on 11/13/06. NY Office location: NEW INCLUDES: State Filing Fees, State (SSNY) 11/10/06. Office location: NY Art. Of Org. filed with Secy. Of State of NY NEW YORK Company Seal & Book, Certificate of YORK County. Secretary of State is designated CORPORATION Incorporation or Organization, Company County. SSNY designated as agent of LLC (SSNY) on 11/14/06. Office Location: New as agent upon whom process against the 95 $16 4 Minutes, Corporate ByLaws, Stock/ upon whom process against it may be York County. SSNY designated as agent of the LLC may be served. Secretary of State shall COMPLETE Membership Certificate, Preliminary The largest Motorola Dealer in New York State LLC upon whom process against it may be CALL FOR FREE Name Search, Attorney’s Fee served. SSNY shall mail copy of process to mail a copy of any process against the LLC INFORMATION ® 307 Fifth Avenue, NY 10016 served. SSNY shall mail a copy of any process PACKET www.amerilawyer .com c/o Oded Levy, Kaia Investment Mgmt., served upon him/her to C/O ODELL NEW YORK LLC (212) 962-1000 (516) 338-9100 212-532-7400 767 Third Ave., 6th Fl., NY, NY 10017. to: c/o Helmsley-Spear, Inc. 60 East 42nd St., LAMBROZA, 19 EAST 80TH STREET, #4-B, 95 NEW YORK CITY LONG ISLAND $ Spiegel & Utrera, P.A., P.C. Purpose: any lawful activities. Ste 5300, New York, NY 10165, Purpose: To NEW YORK, NY 10021. Purpose: To engage 234 45 John St., Suite 711; NYC © L. Spiegel www.metrocomradio.com COMPLETE engage in any lawful act or activity. in any lawful act or activity. RELOCATION SERVICES Notice of Qualification of Centre Asset Notice of Qualification of Right Wall Capital Management GP LLC, App. for Auth. filed Offshore Management, LLC. Authority filed Notice of Qualification of NOCHA A LLC. Sec'y of State (SSNY) 8/1/06. Office with Secy. of State of N.Y. (SSNY) on Authority filed with NY Dept. of State on location: NY County. LLC org. in DE 11/22/06. Office location: NY County. LLC 11/14/06. Office location: NY County. LLC 7/31/06. SSNY designated as agent of LLC formed in Delaware (DE) on 11/17/06. SSNY formed in Delaware (DE) on 11/9/06. Secy. of upon whom process against it may be designated as agent of LLC upon whom State designated as agent of LLC upon whom served. SSNY shall mail copy of process to process against it may be served. SSNY shall process against it may be served. Secy. of Attn: James A. Abate, 30 Wall St., 6th Fl., mail process to: 320 Park Avenue, 10th Fl., State shall mail process to: Michael Fischer, NY, NY 10005. DE office addr.: CSC, 2711 NY, NY 10022. DE address of LLC: Stellar c/o Sukenik, Segal & Graff, P.C., 404 5th Ave., Centerville Rd., Wilmington, DE 19808. Corporate Services LLC, 3500 S. Dupont 5th Fl., NY, NY 10018, principal business Cert. of Form. on file: SSDE, Townsend Hwy., Dover, DE 19901. Cert. of Form. filed address of the LLC. DE address of LLC: c/o Bldg., Dover, DE 19901. Purpose: any with DE Secy. of State, 401 Federal St., Dover, Corporation Service Co., 2711 Centerville Rd., lawful activities. DE 19901. Purpose: any lawful activity. Wilmington, DE 19808. Arts. of Org. filed with DE Secy. of State, Federal & Duke of York St., Dover, DE 19901. Purpose: any lawful activity. D6 MEDIA, LLC, Articles of Org. filed N.Y. Sec Notice of Formation of 350 EAST 19TH ST. Of State (SSNY) 20th day of October, 2006. LLC, a domestic Limited Liability Company. Office in New York Co. at 92 Perry Street, Ste Articles of Organization filed with the Secretary NOTICE OF FORMATION of theZombi LLC. 4, New York, NY 10014, SSNY desig. Agt. of State of New York (“SSNY”) on 11/30/06 Arts. of Org. filed with Secy. of State of N.Y. Upon whom process may be served. SSNY NY location: New York County. SSNY is (SSNY) on 11/16/06. Office location: NY REAL ESTATE shall mail copy of process to 92 Perry Street, designated agency upon whom process County. SSNY designated as agent of LLC Ste 4, New York, NY 10014. Reg Agt. Upon against the LLC may be served. SSNY shall upon whom process against it may be served. whom process may he served: Spiegal & mail a copy of any process against the LLC SSNY shall mail process to: c/o theZombi, OFFICE SPACE Utera, P.A., P.C. 45 John Street, NYC 10038 served upon him/her to the LLC, c/o Turman 374 West 46th Street Apt. 4W NY, NY 10036. 1.800.576.1100 Purpose: Any Lawful Purpose. & Eimer LLP, 1980 Broadcast Plaza, Merrick, Purpose: any lawful activity. NY 11566. Purpose: To engage in any Discover New York LLC. Art of Org filed lawful act or activity. Notice of formation of Chadwick Bell LLC, a EXECUTIVE OFFICE SUITES with NY Sec of State (SSNY) 6/10/04. domestic Limited Liability Company. Arts. Of Office in NY County. SSNY designated Notice of Formation Frank Productions, LLC Org. filed with the SSNY on 11/22/06. Office LLC agent upon whom process may be art. of org. filed SSNY 2/10/05. Off. loc. in NY location: New York County. SSNY is designated 212.573.0909 served. SSNY shall mail copy of process to Co. SSNY designated as agent of LLC upon as agent upon whom process against the LLC 60 E42nd St, #1415, New York, NY 10165. whom process may be served. SSNY shall may be served. SSNY shall mail a copy of Purpose: any lawful purpose. mail copy of process to: 23 Leonard St, NY, process to: the LLC, 648 Broadway, Ste. 601, FurnishedOfficesNYC.com NY 10013. Purpose: Any lawful purpose. New York, NY 10012.Purpose: Any Lawful Purpose. Latest date upon which LLC is to 2095 MARC LLC Articles of Org. filed NY dissolve: No specific date. OFFICE SPACE Sec. of State (SSNY) 7/14/05. Office in New NOTICE OF QUALIFICATION OF LUXURY York Co. SSNY desig. agent of LLC upon UNIRUSH, LLC. Application for Authority Notice of formation of Limited Liability whom process may be served. SSNY shall filed with the Secretary of State of New MIDTOWN COMMERCIAL Company (LLC) Big Apple Spots L.L.C. mail copy of process to 1220 Broadway - York (SSNY) on 12/6/06. N.Y. Office REAL ESTATE PROPERTIES Articles of Organization filed with the Secretary Ste. 408, New York, N.Y. 10001. Purpose: Location: NY County. LLC formed in Ohio For All office & loft SPACES of State of New York (SSNY) on 11/02/2006. Any lawful purpose. on 3/6/02. SSNY has been designated as 500-50,000 SF agent of LLC upon whom process against N.Y. Office location: New York County. SSNY UNDER MARKET SUBLETS-NO FEE! MIAMI BEACH/FLORIDA it may be served. The address to which the has been designated as an agent upon whom Search our listings @ www.midcomre.com Notice of Formation of Stursberg and SSNY shall mail a copy of any process process against it may be served. The Post Call Paul 212 947-5500 x 100 Associates, LLC, a professional service limited against the LLC served upon him is C/O Office address to which the SSNY shall mail a TRUMP OCEANFRONT CONDOS liability company (PLLC). Arts. of Org. filed the LLC: 10625 Techwoods Circle, copy of any process against the LLC served OWN YOUR LUXURY CONDO TODAY! with NY Dept. of State on 8/24/06. Office Cincinnati, Ohio 45242, Attn: Gen. Counsel. upon him/her is C/O the LLC: TRUMP GRANDE & TRUMP TOWERS location: NY County. Secy. of State designated The Principal Business Address of the LLC Big Apple Spots L.L.C. 648 E. 11th St Apt D1 To place your classified Buy directly from the Developer & Save $$ as agent of PLLC upon whom process against it is: 10625 Techwoods Circle, Cincinnati, New York, New York 10009. The Principal Furnished Condo Hotel units from $325k may be served. Secy. of State shall mail process Ohio 45242. Cert. of Org. filed with OH Business Address of the LLC is: 648 E. 11th ad call John Gallagher 1-4 Bedrm Residential Condos from $875k to the principal business address of the PLLC: Secy. of State, 180 E. Broad Street, St Apt D1, New York, New York 10009 @ 212-210-0189 Ask for details on our FLY-BUY Program 405 Lexington Ave., Ste. 4949, NY, NY 10174. Columbus, OH 43215. Purpose of LLC: Purpose/ character of LLC/LLP: Any Lawful Call Exclusively Baronoff 305.213.3606 Purpose: the practice of law. all lawful purposes. Purpose Date of Dissolution: No Specific Date

44 | Crain’s New York Business | January 15, 2007 THE WEEKS AHEAD

THIS WEEK’S EVENTS Network holds networking reception. JANUARY 23 EXPLORING CAREERS JANUARY 16 8:30 a.m. to 10:00 a.m., Citron U.S. Federation of Small Businesses Camba Small Business Services holds Cooperman & Co., 529 Fifth Ave., holds networking reception. 6:30 p.m. to workshop on how to write a business second floor. Free. (212) 472-2528. 8:30 p.m., Guardian Building, 7 Hanover HOSTS SOUGHT FOR HIGH SCHOOL GROUPS plan. 6:00 p.m. to 8:30 p.m., 884 Square, 15th floor. Fee: free for members, Flatbush Ave., second floor, Brooklyn. JANUARY 22-28 $15 nonmembers. (718) 701-0087 or THE GREATER NEW YORK COUNCILS Exploring program is seeking Free. (718) 282-2500, ext. 242, or JANUARY 22 [email protected]. businesses to host educational sessions offering high school students the [email protected]. Career Counselors Consortium holds JANUARY 23 opportunity to explore various industries and make better decisions about JANUARY 17 workshop on success. 7:00 p.m. to 8:30 Net@Work holds workshop to promote possible career choices. Women’s Venture Fund holds workshop p.m., St. Jean Baptiste Church, information-sharing among IT decision The Exploring program puts together groups of 15 to 25 students on building a great business. 8:30 a.m. to Lexington Avenue at East 76th Street, makers. 12:00 p.m. to 2:00 p.m., 575 9:00 p.m., 545 Eighth Ave., 17th floor. basement hall. Fee: $5. (212) 980-2526. Eighth Ave., 10th floor. Free. interested in specific fields, such as journalism, computing services, law or Fee: $219 members, $245 nonmembers. JANUARY 22 Registration required. (646) 293-1763. restaurant operations. (212) 563-0499 or p.cristiano International Furnishing Design JANUARY 23 The student groups meet at the host businesses after school for four or @wvf-ny.org. Association, New York, holds seminar Sobelsohn School holds course on how more sessions, learning about career ladders, educational requirements, JANUARY 17 on time management. 5:30 p.m. to 7:30 to become a notary public. 9:30 a.m. to salary scales and what people in their selected fields actually do. Businesses New York Staffing Association holds p.m., Stroheim & Romann Showroom, 12:30 p.m., 350 Seventh Ave. Fee: $75. often arrange special projects for the students, such as preparing marketing seminar on becoming a top recruiter. 979 Third Ave., first floor. Fee: $25 (917) 441-9740 or materials for a product, designing the concept for a new restaurant, engaging 8:00 a.m. to 10:00 a.m., Tannenbaum members, $35 nonmembers. [email protected]. Helpern Syracuse & Hirschtritt, 900 (212) 686-6020 or JANUARY 23 in moot courts and the like. Third Ave., 12th-floor conference room. [email protected]. Susan Drexler Coaching and Rose Programs start throughout the year, and the timing is tailored to fit Fee: $35 members, $65 nonmembers. JANUARY 23 Group Coaching hold workshop on business schedules. Participating companies include B.R. Guest (800) 264-7029 or Action International of New York City creative marketing for entrepreneurs and Restaurants, Bloomberg LP, Microsoft Corp., Newmark & Co. Real Estate Inc. [email protected]. holds workshop on building a business. small business owners. 6:30 p.m. to 8:00 and Crain’s New York Business. JANUARY 17, 24 6:15 p.m. to 8:30 p.m., 989 Sixth Ave., p.m., Club 420, 420 Amsterdam Ave., For more information, please call Exploring director Bob Hayes at Alternative Board holds networking fourth floor. Fee: $30. (646) 862-1710 or downstairs. Free. (917) 414-1396 or reception and lunch for chief executives. www.actioncoachny.com. [email protected]. (212) 651-2808, or visit www.nyexploring.org. 12:15 p.m. to 1:45 p.m., State Bank of JANUARY 23 JANUARY 23 Long Island, 21-31 46th Ave., Acordia Insurance holds business card Asian Women in Business holds conference room, Long Island City. exchange. 7:15 a.m. to 8:30 a.m., 330 workshop on negotiating. 6:00 p.m. to Trianon Ballroom. Fee: $200 Ad Club and members at door. (201) 440-8144. Free. (718) 465-0865 or Madison Ave. Free. Registration 9:00 p.m., Microsoft, 1290 Sixth Ave., members, $225 nonmembers. JANUARY 24 [email protected]. required. (212) 682-7500, ext. 224. sixth floor. Fee: $20 members, $40 (212) 533-8080. Brooklyn Chamber of Commerce holds JANUARY 18 JANUARY 23 nonmembers. (212) 868-1368 or JANUARY 24 seminar on small business. 8:30 a.m. to New York Business Development New York Society of Security Analysts [email protected]. Young Mortgage Bankers Association 10:00 a.m., Brooklyn Business Solutions holds program on changes to 2006 JANUARY 24 holds lunch program with Jonathan Center, 9 Bond St., fifth floor, Brooklyn. More meetings online at financial statements. 1:30 p.m. to 5:00 Advertising Club and AOL Media Yormak of Broadway Real Estate Fee: free for members, $10 www.newyorkbusiness.com p.m., 1177 Sixth Ave. Fee: $95 Networks hold lunch program on the Partners. 12:00 p.m. to 2:00 p.m., Union nonmembers. (718) 875-1000, ext. 114, Click on “Events” members, $135 nonmembers. future of media. 11:30 a.m. to 2:00 p.m., League Club, 38 E. 37th St. Fee: $50 or [email protected]. (212) 541-3405. Hilton New York, 1335 Sixth Ave., members in advance; $65 nonmembers Continued on Page 46

PUBLIC & LEGAL NOTICES

Notice of Formation of DGM Realty Notice of Qualification of 795 Columbus LLC. NOTICE OF FORMATION of Abacus Advisors, Notice of Formation of THE PUMP Notice of Formation of FRANCE TAXI, LLC a Associates, LLC. Arts. of Org. filed with Secy. Authority filed with NY Dept. of State on LLC. Arts. of Org. filed with NY Secretary of CATERING COMPANY LLC. Arts of Org domestic Limited Liability Company (LLC), of State of NY (SSNY) on 12/14/05. Office 11/27/06. Office location: NY County. LLC State (SSNY) on 11/21/2006. Date of filed with Secy of State of NY (SSNY) on Articles of Organization filed with Secretary of location: NY County. SSNY designated as formed in Delaware (DE) on 11/22/06. Secy. of formation: 10/1/06. Office location: New York 09/14/04. Office Location: New York State on 07/10/2006. NY Office location: New agent of LLC upon whom process against it State designated as agent of LLC upon whom County. Principal bus. location: c/o Wendy County. SSNY designated as agent of LLC York County. Secretary of State is designated may be served. SSNY shall mail process to: process against it may be served. Secy. of Touton, 575 Madison Avenue, Suite 1006, NY, upon whom process against it may be as agent upon whom process against the LLC c/o Dean Maltz, 1735 York Ave., 14H, NY, State shall mail process to: c/o The Chetrit NY 10022. SSNY designated as agent of served. SSNY shall mail process to: may be served. Secretary of State shall mail a NY 10128. Purpose: any lawful activity. Group, 404 5th Ave., 4th Fl., NY, NY 10018, LLC upon whom process against it may be William A. Scott, CPA, PC, 301 E. Hanover copy of any process against the LLC served principal business address of the LLC. DE served. SSNY shall mail copy of process to Avenue, Suite 4, Morristown, NJ 07960. upon him/her to C/O THE LLC, 313 10th address of LLC: c/o Corporation Service Co., Wendy Ann Touton, 575 Madison Avenue, Purpose: To operate restaurant and Avenue, New York, NY 10001. Purpose: Any NOTICE OF QUALIFICATION OF Digital 2711 Centerville Rd., Wilmington, DE 19808. Suite 1006, NY, NY 10022. Purpose: All catering services. lawful activity. Commerce Agency, LLC Authority filed with Arts. of Org. filed with DE Secy. of State, lawful purposes. the Secretary of State of New York (SSNY) Federal & Duke of York St., Dover, DE 19901. Notice of Formation of Cape Equities, LLC; REQUEST FOR PROPOSAL on 12/07/06. Office Location: New York Purpose: any lawful activity. County. LLC formed in Delaware on Notice of Formation of Big Blocks Asset Arts of Org., filed with NY Sec. of State 05/04/06 SSNY has been designated as Management, LLC, a domestic Limited (“SSNY”) 12/14/2006. Office in NY County; agent of LLC upon whom process against Notice of Formation of 240 West Broadway Liability Company. Arts. of Org. filed with SSNY designated agent for service of process it may be served. Address to which SSNY LLC. Arts of Org filed with Secy of State of the SSNY on 10/11/06. Office location: New with copy mailed to c/o Cape Advisors, Inc., shall mail process against the LLC is C/O NY (SSNY) on 08/16/06. Office location: York County. SSNY has been designated as 150 Lafayette Street, 9th Floor, New York, NY the LLC: Corporation Service Co., 80 State New York County. SSNY designated as agent upon whom process against the LLC 10013, All lawful business purposes. Street, Albany, NY, 12207. Principal agent of LLC, upon whom process against may be served. SSNY shall mail a copy of Business Address of LLC 33 W19th St., it may be served. SSNY shall mail process process to: the LLC, 14 Wall St.,12th Floor, NOTICE OF FORMATION OF LIMITED 4th floor, N.Y., N.Y. 10011. Purpose of LLC: to: Peter Moore Associates, Attn: New York, NY 10005. Purpose: Any Lawful LIABILITY COMPANY. NAME: T&T ASSOC., any lawful activity. Jonathan Morse, 515 Canal Street, New Purpose. Latest date upon which LLC is to LLC. Application for Authority was filed with York, NY 10013. Purpose: Real dissolve: No Specific Date. the Secretary of State of New York (SSNY) Estate Investment. on 12/06/04. The LLC was originally filed Notice of Formation of SIBERIA TAXI, LLC a Notice of Formation of Far West Village with the Secretary of State of Florida on domestic Limited Liability Company (LLC), Notice of formation of Limited Liability Partners, LLC. Arts. of Org. filed with NY Dept. 11/02/2004. Office location: New York Articles of Organization filed with Secretary of Company (LLC) Name: TRINITY DIAMONDS, of State on 12/11/06. Office location: NY County. SSNY has been designated as State on 07/07/2006. NY Office location: New LLC. Articles of Organization filed with the County. Principal business address: 11 W. 10th agent of the LLC upon whom process York County. Secretary of State is designated Secretary of State of New York (SSNY) on St., NY, NY 10011. Secy. of State designated as against it may be served. SSNY shall mail as agent upon whom process against the LLC 10/10/06. NY Office location: New York agent of LLC upon whom process against it a copy of process to the LLC, c/o Mass may be served. Secretary of State shall mail a County. SSNY has been designated as agent may be served. Secy. of State shall mail Marketing, 5-31 51st Avenue. Long Island copy of any process against the LLC served of the LLC upon whom process against it process to: Stuart Berg, Kurzman Eisenberg City, New York 100001. Purpose: For any upon him/her to C/O THE LLC, 313 10th may be served. The Post Office address to Corbin & Lever, LLP, 1 N. Broadway, White lawful purpose. Avenue, New York, NY 10001. Purpose: Any which the SSNY shall mail a copy of any Plains, NY 10601. Purpose: any lawful activity. lawful activity. process against the LLC served upon NOTICE OF QUALIFICATION OF him/her is: C/O the LLC, 25 Tudor Notice of Qualification of Dodona I, LLC. Caccappolo Family, LLC Notice of Qualification of NY-Bronx IV, LLC. City Place, Suite 812, New York, NY 10017. Authority filed with NY Dept. of State on Authority filed with the Secretary of State Authority filed with Secy. of State of NY Purpose of business of the LLC is any 12/28/06. Office location: NY County. LLC of New York (SSNY) on 08/31/06. Office (SSNY) on 11/17/06. Office location: NY lawful act or activity. formed in Delaware (DE) on 10/25/06. Secy. of Location: New York County. LLC formed in County. LLC formed in Delaware (DE) on State designated as agent of LLC upon whom Delaware on 07/27/06 SSNY has been 10/31/06. SSNY designated as agent of LLC Notice of Formation of Patria Pictures, LLC. process against it may be served. Secy. of designated as agent of LLC upon whom upon whom process against it may be served. Arts. of Org. filed with NY Dept. of State on State shall mail process to: The LLC, 1370 process against it may be served. Address Advertise on SSNY shall mail process to: 660 S. Figueroa 12/4/06. Office location: NY County. Principal Ave. of the Americas, 20th Fl., NY, NY 10019, to which SSNY shall mail process against St, 24th Fl, Los Angeles, CA 90017. Address business address: 320 W. 17th St., #1RW, NY, Attn: Alan Brody. DE address of LLC: c/o the LLC is C/O the LLC: Corporation www.newyorkbusiness.com required to be maintained in DE: 40 E. Division NY 10011. Secy. of State designated as agent Corporation Service Co., 2711 Centerville Rd., Service Co., 2711 Centerville Rd., Ste. 400, St, Ste A, Dover, DE 19901. Arts. of Org. filed of LLC upon whom process against it may be Ste. 400, Wilmington, DE 19808. Cert. of Wilmington, DE 19808. Principal Business Call John Gallagher with DE Secy. Of State, 401 Federal St., Ste 4., served. Secy. of State shall mail process to: Form. filed with DE Secy. of State, 401 Federal Address of LLC 65 W 13th St, 5B, N.Y., Dover, DE 19901. Purpose: any lawful Corporation Service Co., 80 State St., Albany, St., Dover, DE 19901. Purpose: any lawful N.Y., 10011. Purpose of LLC: any @ 212-210-0189 activities. NY 12207. Purpose: any lawful activity. activity. lawful activity.

January 15, 2007 | Crain’s New York Business | 45 THE WEEKS AHEAD

JANUARY 24 or newyorkbusiness.com. (877) 291-4901 or [email protected]. JANUARY 25 program on leveraged buyouts for 2007. American Business Media holds JANUARY 25 JANUARY 25 Gold Place Network holds seminar on 12:00 p.m. to 2:00 p.m., Williams Club, networking reception. 6:00 p.m. to 8:00 Business Network International, chapter Association of Fundraising Professionals getting credit-worthy. 6:00 p.m. to 8:00 24 E. 39th St. Fee: $50 members, $75 p.m., Cibar, 56 Irving Place. Fee: $95. 15, holds networking breakfast. 7:00 a.m. holds seminar on donor communication. p.m., Support Center for Nonprofits, nonmembers. (201) 692-8087. (212) 661-6360, ext. 3337, or to 8:30 a.m., George’s Restaurant, 89 9:00 a.m. to 4:00 p.m., Association of 305 Seventh Ave. Free. (917) 584-6263 JANUARY 30 [email protected]. Greenwich St. Fee: $18. (201) 289-2208 the Bar of New York City, 42 W. 44th or [email protected]. American Institute of Architects holds JANUARY 24 or [email protected]. St. Fee: $150 members, $175 JANUARY 26 lecture on branding, architecture and Society for Marketing Professional JANUARY 25 nonmembers in advance; additional $25 Tangram International Group, China real estate development in New York. Services, New York, holds breakfast Citigroup Smith Barney holds seminar for all at door. (212) 582-8565 or Solutions and Expat-CFO Services hold 6:00 p.m. to 8:30 p.m., Center for program on transportation in the on trademarks. 6:00 p.m. to 8:00 p.m., [email protected]. seminar on strategic, legal and tax issues Architecture, 536 LaGuardia Place. Fee: Northeast. 8:00 a.m. to 10:00 a.m., Penn 345 Park Ave., 21st floor. Free. JANUARY 25 involved in doing business in China. $10 members, $15 nonmembers. Club, 30 W. 44th St. Fee: $65 members, (212) 230-3431 or New York Commercial Real Estate 8:00 a.m. to 11:00 a.m., Association of (212) 674-4711 or [email protected]. $85 nonmembers. (212) 354-5656. [email protected]. Women Network holds session on the Bar of New York City, 42 W. 44th JANUARY 30 JANUARY 25 JANUARY 25 global trends in real estate capital St. Fee: $60. (215) 238-1486 or Women’s Venture Fund holds course on Crain’s New York Business holds Nexco holds seminar on U.S. foreign markets. 6:00 p.m. to 8:00 p.m., Harvard www.tangramllc.com. making your company No. 1. 9:00 a.m. networking breakfast and program on policy and how it affects international Club, 27 W. 44th St. Fee: $50 members, to 8:00 p.m., 545 Eighth Ave., 17th 2007 economic forecast. 8:00 a.m. to trade. 9:00 a.m. to 12:00 p.m., Williams $75 nonmembers. JANUARY 29-FEBRUARY 4 floor. Fee: $275. (212) 563-0499 or 9:30 a.m., Sheraton New York, 811 Club, 24 E. 39th St. Fee: $45 members, (212) 499-6566 or JANUARY 30 [email protected]. Seventh Ave. Fee: $60. (212) 210-0739 $80 nonmembers, $30 students. [email protected]. Retail Marketing Society holds lunch JANUARY 31 Thypin Oltchick Institute for Women’s Entrepreneurship at the Federation of Jewish Philanthropies of New York holds information session on starting a business. 5:00 p.m. to 8:30 p.m., 130 E. 59th St., seventh floor. Free. (212) 366-0033 or [email protected]. FEBRUARY 1 iBreakfast holds forum on word-of- mouth marketing. 7:30 a.m. to 10:00 a.m., CREA Executive Center, 100 Park Ave., 24th floor. Fee: $50 members, $60 nonmembers. (212) 624-9110 or [email protected]. FEBRUARY 5-11 FEBRUARY 5 Women in Development, New York holds lunch program on strategic grant- seeking. 12:00 p.m. to 2:00 p.m., Princeton Club, 15 W. 43rd St., second floor. Fee: $40 members, $50 nonmembers in advance; $65 for all at door. (212) 265-7650 or [email protected]. FEBRUARY 7 New York Designs and CUNY hold course on solving entrepreneurial challenges. 6:00 p.m. to 9:00 p.m., 45-50 30th St., seventh floor, Long Island City. Fee: $160. (718) 663-8403 or [email protected]. FEBRUARY 7 B’nai B’rith Real Estate Unit holds lunch program on reinventing real estate. 12:00 p.m. to 2:00 p.m., Cornell Club, 6 E. 44th St., Ivy Room. Fee: $55 in advance, $65 at door. (212) 885-7239 or [email protected]. FEBRUARY 7 Ginn ResortsSM Founder Bobby Ginn has a vision for one of the Five O’Clock Club’s Executive Job grandest resort destinations in North America. This vision Search Group holds seminar on using the Internet. 6:30 p.m. to 8:30 p.m., 11 combines the excitement of Monte Carlo, the grandeur of the Penn Plaza, fifth floor. Fee: $50. French Riviera, the soul of the islands and the casually elegant (914) 788-5482. lifestyle perfected by Ginn. With a private airport, mega-yacht FEBRUARY 8 Score New York City holds seminar on marina, Signature golf courses from Nicklaus and Palmer, a business plans. 10:00 a.m. to 12:30 p.m., Monte Carlo-style casino, miles of Bahamian beaches and a New York Public Library’s Science, grand canal winding throughout the entire property, Ginn Industry and Business Library, 188 SM Madison Ave., lower level. Fee: $40. sur Mer will be a whole new world. And you can be a part of (212) 264-4507 or [email protected]. it through ownership of an oceanfront, golf view or deep water homesite. Begin your journey to this new world today FEBRUARY 12-18 FEBRUARY 14 by visiting GINNSURMER.COM or by calling 877-820-0500. Crain’s New York Business holds ARTIST’S RENDERING networking breakfast and program with Amanda Burden, chairman of the City Planning Commission. 8:00 a.m. to 9:30 a.m., Sheraton New York, 811 Seventh Ave. Fee: $60. (212) 210-0739 or www.newyorkbusiness.com. —adrianne pasquarelli

TO LIST YOUR EVENT

Crain’s lists business meetings online and includes GOLF VIEW, DEEP WATER AND OCEANFRONT HOMESITES PRICED FROM $600,000 TO $1.4 MILLION+ them in the print edition on a space-available basis. GINNSURMER.COM Events in New York City with admission fees of less 877-820-0500 than $300 are considered for the print publication. Listings can be submitted only through the Crain’s Web site. To submit a calendar listing, go to Obtain the Property Report required by Federal Law and read it before signing anything. No federal agency has judged the merits or value, if any, of this property. Prices, plans, artist's renderings, photos, land uses, dimensions, www.newyorkbusiness.com and click on “Events.” specifications, improvements, materials, amenities and availability are subject to change without notice. Ownership of a residence at the Development does not grant the use of or access to any golf course or other recreational Sponsors have a choice of several free or paid list- facilities (“The Club”) to be located at the Development, and membership in the Club will be subject to payment of dues, rules and availability. Use of amenities is subject to Membership requirements. This is not an offering of real property or condominium units and offers may only be made at the Discovery Center for the Development. This is NOT an offering of real property or condominium units within the State of New York. Void where prohibited by law ing options. All business events will be posted or where there are other qualifications to advertising real property. Ginn Real Estate Company, LLC, Licensed Real Estate Broker. 12/06 online within two business days. Crain’s can neither confirm receipt of listings nor say if or when event listings will appear in the print edition.

46 | Crain’s New York Business | January 15, 2007 BUSINESS CORPORATE LADDER Radio veteran will show that she knows Jack PAGE 49 buck ennis

GOTHAM GIGS Write stuff KAREN LEVY, 65, works as a calligrapher, inscribing place cards, invitations and menus for individuals and some of the city’s largest companies, including Saks Fifth Avenue and J.P.Morgan Chase. NECESSITY Ms. Levy spent seven years studying her craft and took lessons from Donald Jackson, a celebrated British calligrapher. She fulfilled her first order, a request from Harry Winston for 13,000 invitations, by moonlighting, working every night for three months straight. WRITER’S CRAMP Ms. Levy earns “a comfortable living” by working on calligraphy projects from her home office six or seven hours a day. She stops every 45 minutes to stretch her shoulders and let her eyes rest. Over the years, she has needed physical therapy on her hands and arms. She charges between $1.50 and $1.75 per written line. SATISFACTION Ms. Levy still loves the work. “When I do one that is so pretty that it takes my breath away, I keep it,” she says. “I am living the American dream.” —elisabeth butler EXPERT OPINIONS HOW DO I FIND THE RIGHT PERSONAL TRAINER? when choosing someone at a club, ask the fitness manager instead of going directly to a trainer. Explain your goals. Before you commit, meet for an introductory consultation and check the person’s hal mayforth certifications. If you’re at the gym, watch the person in THE STATS action. If he’s sitting back and Team-building business eating a banana instead of at Chelsea Piers cheering on his client, he’s not Hating the tough love 2005 going to show you caring attention. —tim keightley Staffers can opt out of morale-building tasks Vice president of fitness 3,700 and personal training BY HILARY POTKEWITZ participants New York Sports Clubs orporate retreats featuring competitive team-building activities are 2006 all the rage, but not everyone feels built up by the experience. For many New Yorkers—overweight or featherweight, uncoordinated or unathletic, or just plain uncomfortable—these outings do little more than bring 6,950 participants back bad memories of gym class. Some people simply don’t want to see their boss Source: Chelsea Piers Management Inc. in shorts, or get intimate with co-workers. See HATING on Page 48 istockphoto C January 15, 2007 | Crain’s New York Business | 47 BUSINESS LIVES Hating all of the tough love

Continued from Page 47 Tell us your retreat tales www.NewYorkBusiness.com/retreats Tracey Zeeck went on a team- @ building retreat for her job at the United Way, and one of the first ac- Calif.-based Adventure Associates so much, she’s looking forward to tivities was a “trust fall,”in which one Inc., which runs team-building pro- this year’s retreat. Challenges in- person falls back off a ledge into the grams for Accenture, General Elec- cluded a range of activities—a waiting arms of the rest of the team. tric Co., PricewaterhouseCoopers, water-balloon toss, synchronized “I shot through their hands like Time Warner Inc. and other firms. walking, a pie-eating contest and a greased pig, landing with a thud But for some employees, the re- even birthday cake decorating. onto the hard,red earth,”Ms.Zeeck treats only add a new series of pres- “Not every person is competitive says.When a co-worker went up for sures on top of those they face at in everything,”says Ms.Burns,“and his turn, Ms. Zeeck recalls, she was work.One of the most common ice- you were never alone in a task.” the only person who really tried to breaker challenges involves trans- catch him. “I was once again lying porting team members from point Fear and loathing on the ground,this time with a 200- A to point B, often through a rope still, for the reluctant, there are pound man on top of me,” she says. “spider web” or over a bar in a kind countless reasons to view these pro- She never learned to trust the mem- of reverse limbo. grams with a mix of fear and gettyimages bers of her team. It’s supposed to foster teamwork loathing. The irrepressible can-do Ms. Zeeck, now in her 30s, has and problem-solving. Fun for some attitude of many retreat leaders is since left the United Way,but the ex- people—a nightmare for others. one of them. SURVIVOR! perience still haunts her. When her “We were in beautiful upstate “If you’re uncomfortable, that al- Strategies for handling a retreat current employer asked her recently New York, and the first day we had most always means that you’re grow- to participate in a tree-climbing field to figure out how to pass ing and learning,” says Joe Research what activities will be involved. day, she respectfully declined. “I each member of the group Takash, president of Chica- “It is absolutely reasonable to ask what types of games or physically don’t think I’d be willing to do this over a rope without touch- go-based Victory Consult- demanding tasks will be in the program.” with co-workers ever,” she says. ing it,” says Donna Flagg, a 20+TEAM-BUILDING ing.“You have to go through —DEBORAH NAVINS, director of special events at Chelsea Piers former account executive at events during that period of pain to get to Inspired by reality shows a big Manhattan-based cos- peak months the other side.” That may If you don’t feel comfortable participating in a task, talk to the facilitator activity-based team-building metics company. There at Chelsea Piers work for the varsity team, privately. Don’t go to your company organizer. programs are becoming more pop- were a couple of overweight but not necessarily for the “If you don’t feel well, you don’t feel well; nobody needs to know why. You can ular. The success of reality-based employees in the group. “They were office IT manager. just say, ‘It’s personal.’ Facilitators know what to do in those situations.” television shows such as The Ap- horrified,” she says. This type of tough-love coach- —DONNA FLAGG, president of The Krysalis Group prentice, Survivor and The Weakest One of the heavier partici- ing is not uncommon in the indus- Link has contributed to the belief pants—a senior manager—disap- try. “The facilitator can usually see If you’re not going to participate in a task, make sure to be an enthusiastic among companies that retreats are a peared for the rest of the day. the individual out in the weeds who supporter of the team and contribute to the decision-making process. good way to build morale. Another task involved balancing doesn’t want to participate,” says “Groups have to have someone to lead and someone to follow. These “I’m seeing more and more firms on cinderblocks and performing an Bill Morin, president of Manhat- programs are not about finding the weakest link and eliminating him or her.” opt to spend a day or more outside on-stage karaoke routine. Ms. tan-based consulting firm WJM the office, because the workplace has Flagg was in her 20s and new at the Associates Inc., which runs the —ED TILLEY, president of Adventure Associates Inc. become such a pressure cooker,” says company. She had a background as Montana Leadership Institute. Ed Tilley, president of El Cerrito, a dancer. She remembers thinking: Mr. Morin says it’s sometimes “I don’t want to look like a dancer. necessary to “excommunicate the I’m not working here as a dancer.” person,” so the rest of the group can Nor did she want to show up any benefit from the activity. He finds of her bosses, so she tried to play that the malcontent usually “gets BUSINESS BREAKFAST FORUM down her abilities. with it” once the group moves on Ms.Flagg eventually quit the job. without him. But her frustration with the experi- “There’s a certain amount of peer ence spurred her to start her own pressure and acceptance,” Mr. company, Manhattan-based The Morin says. “They realize what’s at Amanda Burden, Chair of the City Planning Krysalis Group,which specializes in stake. They think, ‘The company is team-building. She was determined spending money on me for this; I Commission, will discuss the land use implications to do it right. “None of those skills better show up.’ ” of accommodating another million people in New we learned at those retreats are rel- Of course, such group-pressure evant back at work,” she says. tactics may get people to play along, York in the next 25 years and Mayor Bloomberg’s Not everyone is haunted by a but critics ask, to what end? Many rebuilding plan. harrowing experience. Some people team-building programs expose vul- are just naturally skeptical of such nerabilities,such as fear of heights or Ms. Burden, who has had a large hand in reshaping rah-rah team activities. of singing in front of a group, that the city in recent years, will also be questioned “I’m not a competitive person,” have no relevance in the workplace, says Joan Burns, a self-described says Ben Dattner, an organizational on the many large projects recently approved or Amanda Burden fiftysomething senior director of psychologist and adjunct professor Chair, awaiting action in the city. City Planning Commission administration for law firm Son- at New York University. nenschein Nath & Rosenthal. “Can you think of a darker circle She had to give herself a pep talk of hell than having to listen to your last summer before participating in co-workers do karaoke?” he asks. Date: February 14, 2007 Cost to attend: her first team-building retreat with $60 for individual ticket(s) if pre-registered Place: Sheraton New York the firm. She ended up enjoying it COMMENTS? [email protected] by February 7 (American Express, Visa or 811 Seventh Avenue MasterCard only); $70 thereafter Time: 8:00-8:30 a.m. Networking Breakfast $600 for table(s) of ten if pre-registered by 8:30-9:30 a.m. Program February 7; $700 thereafter ALWAYS A KICK THE STAFF ROSTER OF NEW YORK-BASED MAJOR LEAGUE SOCCER is full of YOU MUST BE PRE-REGISTERED TO ATTEND THIS EVENT. ALL TICKETS ARE NON-REFUNDABLE. people who were high school, college and professional players. “But we also To register go to newyorkbusiness.com and click on “Events,” or fax your business card have some employees who never played soccer,” says Human Resources and credit card information to “Burden Breakfast” at 212-210-0499. For more information, Director Susie Goldsmith, who includes herself in that category. call the Events Hotline at 212-210-0739. Ms. Goldsmith’s department organizes morale-boosting activities, which sometimes involve soccer tournaments. “We’re a pretty athletic organization, but we do have employees who are a little nervous or apprehensive,” she says. The company disperses inexperienced players evenly among the teams. SPONSORED BY: “We also have a few employees who just come to watch and cheer, and that’s fine too,” she says. “It’s a way to participate without playing.”

48 | Crain’s New York Business | January 15, 2007 BUSINESS LIVES CORPORATE LADDER Jennifer Donohue Radio vet knows Jack General manager tion WNEW and tuned in. “It was a little sad to say goodbye,” she re- PERSONNEL FILE helping WCBS-FM calls. “But we all knew oldies were regain its footing with going to evolve into the next phase.” COMPANY Jack FM, CBS Radio Uphill climb TITLE Vice president, general manager shuffle format that evolution has been slow to catch on in New York. Ratings for AGE 37 BY MATTHEW FLAMM Jack immediately fell off a cliff, RÉSUMÉ Director of sales, CBS dropping to a 1.5 share of listeners Radio’s New York FM stations; ike many New Yorkers, from the 3.9 share the station com- general sales manager, WNEW-FM Jennifer Donohue has manded with its popular oldies for- fond memories of mat, according to Arbitron. In the PERSONALITY TYPE Always golden oldies station ratings released last week, Jack had looking for win-win situations WCBS-FM. But hers worked its way up to a 2.1 share for INDISPENSABLE GADGET Lmight be more personal than most: fall 2006. BlackBerry The Flushing, Queens, native in- However, among listeners aged terned at the station one summer 25 to 54 years old,a category favored before she finished college. by advertisers, Jack now boasts a 2.9 sales have recovered somewhat this The gig helped pave the way to share—surpassing the 2.8 that the year, as ratings have improved. Of- a career in radio, mostly at CBS oldies format had achieved in its fi- ficials at CBS thought Ms. Dono- Radio stations. Last month—some nal ratings period. Among the 25- hue had the imagination and know- two decades after her stint as a to 34-year-old crowd, Jack has al- how to make the most of the format. gofer—Ms. Donohue became the most three times as many listeners as “She’s a terrific saleslady,” says general manager of WCBS-FM, did the old WCBS. her boss, Les Hollander, regional

which switched to the iPod shuffle- “We keep Jack fresh,” says Ms. manager at CBS Radio. “And she’s levinekarjean like format called Jack in 2005. Donohue of the format, which has solution-oriented,not only in nego- She filled a position that had no DJ, but features a wisecracking tiations with customers but in deal- and family—and an appreciation for is now a healthy 3-year-old. been vacant since last July,when the canned voice and a random music ing with employees.” the refuge that work provides. The experiences “kind of set the previous general manager, Chad mix. Her husband successfully fought tone for just keeping going,” Ms. Brown, was let go as part of a com- Keeping Jack flush is a different Different perspective back against a severe illness. Ms. Donohue says. “That’s the tough panywide restructuring. story. As ratings plunged, ad rev- ms. donohue has enjoyed steady Donohue also lost a daughter fol- stuff. But you focus on [work]. Ra- Ms.Donohue can remember the enue at the station fell to $24 million progress from intern to station lowing the premature birth of her dio’s fun,and you can do great things day that WCBS played its last in 2005, a 30% drop from the previ- leader. Her personal life, however, twins during the East Coast black- with it.” oldies song: She was working as ous year,according to BIA Financial has been marked by battles that have out.Mercifully,her son,born weigh- general sales manager at sister sta- Network. Industry insiders say that given her a new perspective on work ing less than 2 pounds, survived. He COMMENTS? [email protected]

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January 15, 2007 | Crain’s New York Business | 49 BUSINESS LIVES

EXECUTIVE MOVES

ACCOUNTING & CONSULTING 48, was promoted to principal and senior vice president in equity research. Amper Politziner & Mattia: Peter Bible, 48, director of global operations from He was formerly a senior biotech analyst HOT JOBS joined as partner in charge, New York. director of strategic accounts. at SunTrust Robinson Humphrey. He had been chief accounting officer at General Motors. EDUCATION HEALTH CARE WANTED: DEVELOPMENT DIRECTOR ERE: Gary Choolfaian, 50, joined as Skowhegan School of Painting & Calvary Hospital: Barbara J. Nitzberg, 42, principal. He had been a principal at Sculpture: Kathryn Haw, 36, was joined as director of public affairs and UHY Advisors. appointed executive director of community relations. She was formerly INSTITUTION New York Methodist Hospital Huron Consulting Group: Gary M. Arrick, development and administration. She was manager of media relations and JOB DESCRIPTION Meeting short- and long-term fund-raising goals, 42, was promoted to managing director of formerly director of development and special projects at the College of New creating service programs and coordinating special events disputes and investigations from director. acting director of external affairs at the Rochelle. Rob Vanderbeek, 41, was promoted to American Federation of Arts. MOST IMPORTANT TASKS Identifying sources of government and managing director of corporate advisory HIGH TECH & NEW MEDIA nongovernment funding while increasing community support for the services from director. FINANCE & INSURANCE FeedRoom: Steven Gittleson, 37, was Brooklyn hospital Capco: Richard Bemindt, 43, was named chief technology officer. He was CREDENTIALS NEEDED Seven years of senior-level fund-raising ADVERTISING & COMMUNICATIONS appointed chief technology officer, formerly chief technology officer at experience at nonprofits in the health care industry. Burson-Marsteller: Tony Telloni,39, managed services. He was formerly a Omnipod Inc. joined as New York market leader. He vice president at Applimation Inc. Lectra: Jerry Inman, 42, joined as vice SALARY $130,000 to $150,000 had been a senior vice president and First Capital: Van Carter, 60, was president of marketing for North RECRUITER Professionals for Nonprofits deputy general manager at Edelman. promoted to president, financial America. He was formerly director of Developers Group: Glenn Zagoren, 51, services, Asia. He continues as marketing at Information Builders. DOWNSIDE Working in a challenging fund-raising environment joined as senior vice president, a newly managing director for North American UPSIDE Having the chance to promote the continued growth of a created position. He had been senior operations. HOSPITALITY & TOURISM financially stable health care institution adviser to the president of the Cantor Société Générale Corporate & Investment Ritz-Carlton New York, Battery Park: Fitzgerald Foundation-9/11 Memorial Banking: Peter Abeles, 52, joined as Rick Evanich, 49, was named general New York Methodist Hospital, located in Park Slope, is a member of Foundation. managing director. He had been a manager. He was formerly general the New York-Presbyterian Healthcare System. The 125-year-old relationship manager at Standard & manager of the Ritz-Carlton, Boston institution has an operating budget of $400 million and 3,200 ARCHITECTURE & DESIGN Poor’s. Common. employees. —AMANDA FUNG Shen Milsom & Wilke: Marc Hochlerin, Stanford Group Co.: Han Li, 38, joined as David Chase, 43, was named hotel manager. He had been director of catering and conference services for Ritz-Carlton Hotels of New York. CRAIN’S BREAKFAST, JAN. 25 joined as partner. He had been senior Howard Hersch, 24, was promoted to LAW counsel at Holland & Knight. managing director from director. THE ECONOMIC OUTLOOK FOR NY Cadwalader Wickersham & Taft: Julian Thacher Proffitt & Wood: Janet Barbiere, Real Estate Group New York: Ryan Chung, 40, was promoted to partner 52, joined as partner. She had been a McCann, 28, joined as chief information CAN NEW YORK’S ECONOMIC BOOM CONTINUE? Will Wall from special counsel. partner at Sidley Austin. officer. He had been search marketing Street be able to match last year’s extraordinary profits? Is Israel Dahan, 35, was promoted to William Cullen, 46, joined as partner. He manager at E-commerce Partners. the worst over for the city’s apartment market? Can partner from associate. had been a partner at Sidley Austin. SERVICES technology again become a key force in the city? Greg David Matthew Hendrickson, 41, was promoted Bola Oloko, 39, joined as partner. He had A panel of leading experts will provide the answers at a to partner from special counsel. been a partner at Sidley Austin. Ambassador Construction Co.: Daniel L. Carter Ledyard & Milburn: John J. Hanley, Weil Gotshal & Manges: Michael J. Aiello, Oill, 45, joined as vice president. He was Crain’s New York Business economic forecast breakfast on 38, was promoted to partner from 37, joined as partner. He had been a formerly a senior vice president at Jones Thursday, Jan. 25. The event, sponsored by real estate firm counsel. partner at Dewey Ballantine. Lang LaSalle. GVA Williams, will be held at the Sheraton New York, with Cullen and Dykman: Daniel M. Bagatta, American Arbitration Association: Sandra doors opening at 8 a.m. The program will begin promptly at 36, was promoted to partner from MEDIA & ENTERTAINMENT Partridge, 56, joined as vice president, 8:30 and will conclude by 9:30. associate. A&E Network: Guy Slattery,35,was business development. She had been a The panel includes: Richard H. Freeman, 63, was promoted appointed senior vice president of research assistant at Dickinson School of Crain’s editor Greg David, who will provide an overview to partner from of counsel. marketing. He had been a senior vice Law. Brad Hintz Day Berry & Howard: Shawn T.Wooden, president at National Geographic Russell Reynolds Associates: Shawn of the economy, forecast job gains for 2007 and focus on 37, was promoted to partner from Channels International. Banerji, 35, was promoted to managing some overlooked sectors. associate. NBC Universal Digital Distribution: Jean- director from executive director. Wall Street analyst Brad Hintz of Sanford Bernstein, who Haynes and Boone: Kenneth Rubinstein, Briac Perrette, 35, was promoted to Stephen Fitzgibbons, 37, was promoted to will discuss whether Wall Street is in for tougher times. 38, joined as partner. He had been a president from senior vice president, managing director from executive Housing expert Jonathan Miller, president of appraisal partner at Olshan Grundman Frome new media distribution, and chief director. firm Miller Samuel, who will dissect the housing market. Rosenzweig & Wolosky. financial officer, NBC Universal Cable. —adrianne pasquarelli Kaplan Fox & Kilsheimer: Jason A. Zweig, Oxygen: Michelle Niven,37,was Web guru Kevin Ryan, chairman of ShopWiki, who will 33, was promoted to partner from promoted to senior vice president, discuss the rebirth of Web 2.0 in New York. Jonathan Miller associate. affiliate advertising sales, from vice EXECUTIVE PROMOTIONS The cost to attend the breakfast is $60 with pre- Loeb & Loeb: Mark A. Shapiro, 44, joined president. Crain’s lists the promotion and hiring of New York registration by Jan. 19 and $70 thereafter. as partner. He had been counsel at area senior executives on a space-available basis, To reserve seats for the breakfast, visit Crain’s Web site, Thelen Reid Brown Raysman & Steiner. REAL ESTATE with priority given to positions in New York City. www.NewYorkBusiness.com, and click on “Events,” or fax a Mintz Levin Cohn Ferris Glovsky and Meridian Capital Group: Angela Mirizzi- The fastest way to get an announcement into Popeo: copy of your business card and credit card info to David S. Ivill, 48, joined as Olsen, 45, joined as executive vice Crain’s is to submit the information online. member. He had been a partner at president. She was formerly a senior Go to www.newyorkbusiness.com and click on “Economic Forecast Breakfast” at (212) 210-0499. McDermott Will & Emery. executive at Lightstone Real Estate “Executive Moves”; then click on the link to fill For more details, call the Events Hot Line at Andrew B. Roth, 54, joined as member. Partners. out the submission form. The Executive Moves (212) 210-0739. Kevin Ryan He had been a partner at McDermott PBS Realty Advisors: David Emden,25, column is also available online. Will & Emery. was promoted to managing director Crain’s cannot confirm receipt of listings or say Schiff Hardin: George F.A. Parnell,46, from director. when they will appear.

50 | Crain’s New York Business | January 15, 2007 BUSINESS LIVES TABLE TALK by Bob Lape garlic and ginger aïoli, and sake- with bacon, licorice, coffee and can- side choices than anyone. The cured salmon with tobiko cream died blackberries. Not for the faint- handsome, loud room has views of cheese and white truffle deviled hearted!” Others are “astonishing,” the Hudson River. quail eggs. “immense,” “enormously concen- Other entrées of note, for good trated,” “powerfully seductive” and Porter House New York ★ ★ and ill: plump, fresh Dover sole even “consistently delirious.” Time Warner Center, 10 Columbus meunière and roasted Kurobuta To fully appreciate the wine list Circle, fourth floor, Manhattan. pork chop with Japanese chili pep- might mean plunging headlong into (212) 823-9500. Chef Michael Lo- per apple sauce. Mustard-rubbed the verbal swordplay, which likens monaco offers porterhouse cuts of organic chicken proved dry. the making of wine that affords everything, from beef to monkfish. Among sides ($7 to $14), “oblivious rapture”to forging a great The posh spot has park views. ■ creamed corn with sake and white blade. Holy Toledo! truffles is a must, and the varied takes on whipped potatoes—in- COMMENTS? [email protected] cluding wasabi and shiso, and lob- ster and black truffle—may be or- dered by the trio.Sounds like a plan. BEST OF BOB LAPE For dessert, Baked Alaska is de- cent eye candy and chocolate layer Here are a few prime cuts from the cake meets most standards, but by plethora of new steakhouses in the area. that time, the digestive system may be screaming, “Stop!” Quality Meats ★ ★ ★ ½ Kobe Club’s list of well-chosen 57 W. 58th St. (between Fifth and wines is a veritable novella. Rather Sixth avenues), Manhattan. RUBBISH precious categories are assigned to (212) 371-7777. Rustic New Amer- wines available “by the stem.” ican food and great service in a REMOVAL Sparklers become Starry Begin- playful setting that suggests a nings, whites are headlined Reed high-design meat locker. and Amber, and reds are grouped under Crimson and Twilight. Craftsteak ★ ★ ½ Nonetheless, the list, which con- 85 10th Ave. (at West 15th Street), tains gems like the “earthen master- Manhattan. (212) 400-6699.Tom Free Estimates 24 HourService photos: gibbons catherine piece” of Aldo Conterno’s 1995 Colicchio comes to the meatpack- EN GARDE! The Marquis de Sade would feel right at home in the dark, leather-studded interior, Bussia Soprana Barolo ($550), de- ing district with more steak and Basements - Attics - Yards - Demolition which is punctuated by 2,000 samurai swords suspended from the ceiling. Residential Contractors mands to be savored slowly and pas- Commercial Accounts Welcome sionately. www.gregsexpress.com The descriptive fervor—or fever—continues. A Sauvignon Greg’s express Blanc is “intriguing, complex and a Save the Planet. Recycle. bit intellectual”; a Chenin Blanc is Kobe Club “mysterious and ethereal”; and a 1-866-MR-RUBBISH makes the cut Syrah is parsed as “fat and dripping M&K BUSINESS HEROES able and lush beef to hit plates here Newest steakhouse to date. There are dozens of styles KNOWLEDGE | INTEGRITY | RESPONSIVENESS entrant slashes its for presenting this rich meat, which is bred and raised in Japan,Australia way onto scene; wine and America with methods that en- sure the highest level of fat mar- list reads like a book bling. The tartare, prepared tableside, ith the debut blends beef from all three sources. of Kobe Club, American Kobe beef cheeks are su- two of New perb in ravioli bathed in truffle York’s most im- broth. Speaking of truffles calls up pressive meater- another exercise in extravagance: KOBE CLUB ies now face each other across West black truffles, sprinkled over extra- 68 W. 58th St. W (between Fifth and Sixth avenues) 58th Street. thick applewood-smoked bacon. Jeffrey Chodorow’s new restau- But back to beef, which can be (212) 644-5623 rant and Quality Meats,from the fa- mixed and matched to compose ★★★ ther-son team of Alan and Michael mighty mains. Two guests may or- CUISINE Steakhouse Stillman, may now parry and thrust der the Emperor’s Flight—a platter HUNDREDS OF OUR CLIENTS with swords and butchers’ cleavers. with 4 ounces each of filet and strip, WINES 175 choices, 14 by the HARNESS THE POWER OF OUR To dine in the Kobe Club’s main plus a 10-ounce rib-eye, all sourced glass KNOWLEDGE AND EXPERTISE sanctum is to know how James Bond from Japan—for $295. But then, a IN THE FACE OF CONTROVERSY. feels when Ernst Stavro Blofeld’s 28-ounce Australian Wagyu porter- DRESS No code latest diabolical contrivance threat- house rings the gong at $390. NOISE LEVEL Lively ens him with imminent dismem- As mouth-mesmerizingly mar- PRICE RANGE $25-$195 In the real world, we’re CPAs. berment. Dodd Mitchell Design of velous as these dishes are,I must also To our clients, we’re Superheroes. Los Angeles turned Mr. Chodor- report that Charlie’s sizzling sliced WINE MARKUP 90%-200% ow’s former Mix on its head—from steak—named for Mr. Chodorow’s CREDIT CARDS All major white to very, very dark—suspend- partner, entertainment tycoon ing (securely,we hope) 2,000 samu- Charlie Walk—rests comfortably RESERVATIONS rai swords from the ceiling, points and deliciously on a bed of roasted Recommended MARCUM & KLIEGMAN LLP down. Vidalia onions and whole roasted HOURS Dinner, Mon.-Sat., Certified Public Accountants & Consultants The Marquis de Sade would love garlic. The dish, for two, is a mere 5:30-11:30 p.m. Kobe Club’s intimate, sensual, $52. ★★★★ 800.921.0777 | www.mkllp.com leather-clad décor. The sleek tables There are culinary adventures = Outstanding ★★★= Excellent NEW YORK are patrolled by a staff uniformed in other than beef. Sumptuous starters STAY TUNED FOR ★★= Very good MELVILLE black, of course. ($11 to $32) include a crab cake GREENWICH THE NEXT INSTALLMENT OF ★= Good Kobe lives up to its name big- “double stuffer,” a hamburger-for- GRAND CAYMAN M&K BUSINESS HEROES time,with some of the most remark- matted bundle of joy served with

January 15, 2007 | Crain’s New York Business | 51 Downtown White Plains is About to Be Redefined

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