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buck ennis VOL. XXVIII,NO.30 NEWSPAPER latest gourmet trend latest gourmet lines ofcity’sfront on restaurateurs for bakers,retailers, Extra-sweet profits new cupcakes D CRAIN’S oughnuts:the WWW.CRAINSNEWYORK.COM E OKBUSINESS YORK NEW provide themostprofit. treat night—can goodfrom till morning ers are discoveringthatthedoughnut—a cravings,bak- satisfyafter-dinner macarons and cupcakes While hitting thesweetspot. is sweepingthecity The latestfoodcraze BY ADRIANNEPASQUARELLI “I know“I peoplethinkit’s justbreakfast, LISTS THE cated concoctionscated than the garden-variety Terminal neighborhood. asiteintheGrandCentral coming soon, a 17-month-oldoutpostinChelseaand, as aswell EastSide, ontheLower quarters expandedhead- hasarecently which Plant, owner ofDoughnut saidMark Israel, day,” but ourbusinessisthroughout thewhole But these doughnuts are more sophisti- ® LEASES TOP OFFICE SALES TOP PROPERTY e OGNTonPage23 See DOUGHNUT P. 15 Note: 75¢ 25%, orabout PROFIT: PRESUMED 75¢ SUCH: PACKAGING AND PAPER, ELECTRICITY, RENT, 60¢ isabout cost estimated Here, the ingredients: 20%. of adoughnut’s sugar. Average cost basic—flour, water, ingredients are doughnut most fare, but gourmet treattrue this Greenmarket make UnionSquare the BLUEBERRIES LOCAL 90¢ around that’s case, So, inthis say.price, experts retail 30% ofthe relatively low—about COSTS LABOR $3 sells for diameter and inches in five Doughnut Plantis DOUGHNUT GLAZED THIS BLUEBERRY- DOUGH MAKING P. 16 Crain’s 25%, or around estimates employs 13 sets of dads and lads from are from litigation for LIBOR up lawyers Wall Street on out-of-statewomen performed abortions in 26%rise clinicssee NY Those LIBOR settlementswould ofderivatives. worth $350 trillion ofloansand worth mated $10trillion interest onanesti- to calculate rates amarket benchmark used offered rate, interbank also known astheLondon their role inmanipulatingLIBOR, over damages to settle legal claims in out$35billion havetoshell will be themotherlode. the fiascowithLIBOR couldprove to have provided a gold mine of work.But Wall ofrecent scandals years Street the merous outfitsthatassistthem, accountants and the nu- For lawyers, ELSTEIN BY AARON brag about no one can A biz boom r h onee h engr “And whocounseledtheteenager. er, thecenter’s headsocialwork- Pregue, andheadednorth. website, contactsonits Jamaica,Queens,found profit women’s healthcenterin abortion. an to findadoctorwillingperform teenagerwasunable theFlorida sion, permis- sured andhavingherparents’ beingin- pregnant andscared.Despite months The 14-year-oldwastwo SCOTT BY GALE in banksettlements producing $35billion rate-rigging cases Early estimateshave Smith & WollenskySmith FATHERS &SONS Analysts expectthatglobalbanks Analysts Hrddsatukr”saidEsther dad’s“Her atrucker,” afor- heardaboutChoices, She See ABORTION onPage22 See ABORTION JULY 23-29, 2012 PRICE:$3.00 See BANKSonPage23 .25 P. 20120723-NEWS--0002-NAT-CCI-CN_-- 7/20/2012 6:38 PM Page 1

STATS AND THE CITY

HARD TIMES REDUX After topping out at 10% in the thick of the recession, then beginning a steady decline, the city’s seasonally adjusted jobless rate began to rise last summer. In June, it hit a three- FYICRAINSNEWYORK.COM year high—nearly 2 percentage points above the national average.

11% 10% 9% 8% 10% 7% 6% 5% 8/08 9/09 2/10 6/12 Daffy’s ducks out Source: NYS Department of Labor nother longstanding RUNNING NUMBERS local retailer has bitten the dust. Last buck ennis A Daffy’s 6.3M 156 22K 1.6% week, discount chain , based in Secaucus, N.J., announced that after more than half a RECORD SATURDAY REQUESTS for RISE in New York ATTENDANCE at NIGHT LIVE’S H1-B immigration metro area century in business, it had reached the end of its financial rope. the Met Museum total Emmy visas for NY tech consumer prices Rumors of trouble at Daffy’s had been rife in retail circles for months. Most recently, reports in fiscal year just nominations, a jobs; 42% of total in June, vs. a year ended record requests earlier surfaced that Daffy’s was facing heavy pressure from rivals including Century 21 and T.J. Maxx— Source: Metropolitan Source: Academy of Source: Brookings Source: Bureau of Museum of Art TV Arts & Sciences Institution Labor Statistics not to mention flash-sale websites like Gilt Groupe—and was struggling to pay its vendors. Chief Executive Marcia Wilson, daughter of late founder Irving Shulman, had been searching for a GOOD BOUNCE After two quarters of declines, venture capital funding financial partner for two years before time finally ran out. for startups in the state recovered a bit in the second quarter. All of the company’s 19 stores, including eight in Manhattan and one in Philadelphia, are $831M expected to close by October. Among those will be the chain’s big new flagship store in the old New York Times Building on West 44th Street. Daffy’s demise comes on the heels of New York discounter Syms Corp.’s downfall. After $539M $568M $500M taking on a heavy debt load via its purchase of struggling Filene’s Basement in 2009, and facing mounting competition and a sagging economy, Syms pulled the plug last fall. $336M —adrianne pasquarelli

2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 BIKE-SHARE PROGRAM IS M.I.A. The will put another $1 billion on taxpay- Source: CB Insights launch of the city’s much-ballyhooed ers’tab.The funds’returns on their in- HOORAY! bike-share program has been put off vestments were expected to reach 8%. ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY WOODBURY until August, a month after its sched- Oops turns out they made less than COMMON IN uled debut. The so-far-invisible, a quarter of that: 1.7%. That disap- THE BRONX? A Citigroup-sponsored program aims pointment comes on the heels of two Manhattan developer is THIS WEEK IN CRAIN’S to put 10,000 rentable sets of wheels excellent years: The funds returned hoping to build on the streets within a year, but the 23% in 2011 and 14% in 2010,accord- an outlet mall in Transportation Department is cur- ing to Comptroller John Liu. … LI- the Bronx. It IN THE BOROUGHS------3 would be the rently not talking firm dates.The pro- BOR’S LABORS. Everyone agrees that first such Woodbury Common-type IN THE MARKETS------4 gram appears to have “hit some snags,” the process of setting the London in- shopping center in the city. Keep your said Councilwoman Letitia James. terbank offered rate, or LIBOR, is credit cards handy. THE INSIDER ------6 Friday, Mayor Bloomberg blamed deeply flawed, if not criminal. But it SMALL BUSINESS ------9 faulty software. … EMIGRANT SELLS looks increasingly as though it may be OY VEY! BRANCHES. OPINION ------10 Emigrant Savings Bank’s easier to fix it than totally trash it. owner,the Milstein family,is selling off With investigators around the world LINSANITY MEETS CO$TLY FROM AROUND THE CITY----12 END. The New York Knicks let all but two of the still trying to figure Jeremy Lin walk rather than REPORT: REAL ESTATE------13 bank’s 32 branches to out which banks match a $25 million offer Apple Bank for Sav- ‘More than a cheated and when, re- from Houston. The move REAL ESTATE DEALS------18 wiped $36 million ings. The $10 billion- restaurant, it forms may take some off the value of FOR THE RECORD------19 asset Emigrant will time. … THE DAY THE Madison keep a location on has been a TALK STATION DIED. Square Garden CLASSIFIEDS ------20 Co.’s stock last East 42nd Street and meeting place No more chatter on week and sent BUSINESS PEOPLE NEW YORK, NEW YORK ------25 one in the Hudson radio station FM some team Sales of vegan goods at Denise Valley,plus two online News 101.9. Under sponsors to the SOURCE LUNCH------for black Mari’s Organic Avenue are 26 operations. … EM- owner Randy exits. newscom nearing $20 million. P.7 OUT AND ABOUT ------27 PLOYERS CATCH A America.’ Michaels, the former WORKERS’ COMP —Rev. Al Sharpton, on rock station did a one- 62-page salvo insisting it had every- CORRECTIONS BREAK. New York Sylvia’s Restaurant, whose year spin as New thing under control,courtesy of a con- Con Ed offers both a defined-benefit pension plan and a 401(k). This information was companies will pay founder, Sylvia Woods, York’s only all-news tingency plan that has 5,000 managers misstated in Greg David’s July 9 column, “Con Ed dispute sheds light on labor reality.” less on their workers’ died last week FM station. Now it’s working 12-hour shifts. No way, the The Intrepid Sea, Air & Space Museum held nine “Operation Sleepover” events in 2009, compensation premi- done.“I felt it was time union fired back. … R.I.P., QUEEN OF the program’s first year, for 1,500 guests. It will host 20 sleepovers this year, bringing in um rates for the first time since 2008. to make a change,”Mr.Michaels said. SOUL FOOD. World-famous Harlem approximately 4,000 guests. This information was misstated in the July 9 “Museums dream big with sleepovers.” Rates to policyholders will actually Today, the name is New Rock 101.9, restaurateur Sylvia Woods died at age drop 1.2% in the upcoming year. The and alternative rock is what it offers. 86 after suffering from Alzheimer’s. The name of the Chicago Public hotel’s room-delivery service is Public Express. This CON ED’S HEAT WAVE. information was misstated in the July 16 “Ian Schrager goes Public.” state’s compensation insurance rating … The Con Ed The Queen of Soul Food, Ms.Woods board recently recommended a cost in- lockout of 8,500 unionized workers founded Sylvia’s Restaurant on Mal- City Opera’s unions threatened to picket outside General Manager and Artistic Director George Steel’s home. This information was misstated in the July 16 “Fat lady? She’ll crease, but the governor opposed the slogged through a third week amid colm X Boulevard in 1962 and owned have to wait.” move.… PENSION PAIN. Underperfor- both soaring temps and tempers. Con it until her death. The name of Italy’s Sorgente Group was misspelled in the July 16 “A jewel of a building.” mance by the city’s five pension funds Ed responded to a union request to —lauren elkies in the fiscal year that ended June 30 regulators to end the lockout with a and daniel massey Robert White’s company is Real Capital Analytics. The name was misstated in the July 16 “Building on a dream.” Insperity is a human-resources provider. This information was misstated in the July 16 “How to get big-firm perks.” STORIES TO WATCH THIS WEEK vol. xxviii, no. 30, july 23, 2012—Crain’s New York Business (issn 8756-789x) is published weekly, except for double issues the weeks of July Fourth, Labor Day and Christmas, by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals postage paid at July 24: Forum on July 25: City July 25: Planning July 26: The New New York, N.Y., and additional mailing offices. Postmaster: Send address changes to: Crain’s city’s plan to ban Council slated to Commission holds a York Times Co.’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (877) 824-9379. Fax (313) 446-6777.$3.00 a copy, $99.95 one sales of soft drinks vote on New York public meeting for second-quarter year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved. larger than 16 oz. at University’s campus Chelsea Market’s earnings report to certain food locales. expansion. proposed expansion. be released.

2 | Crain’s New York Business | July 23, 2012 20120723-NEWS--0003-NAT-CCI-CN_-- 7/20/2012 6:22 PM Page 1

IN THE BOROUGHS BRONX

Rail plan spurs cheer in Bronx Metro-North stops in four areas seen as big economic boost ALEX RAHAMAN moved his tech firm’s headquarters from BY HILARY POTKEWITZ London to New York hoping to provide some Co-op City, the sprawling coopera- answers to the advertising riddle. tive apartment complex in the east Bronx with 35 high-rises, assorted townhouses and more than 60,000 residents, has always been tough to get to by train. There’s the No. 5 or No. 6 subway, but their closest stops are nearly a 20-minute bus ride away, and though there’s also an express bus from midtown, its scheduled 45- minute run is seldom achieved.“On Digging for digital gold a bad day, or if you get stuck during Digging for digital gold rush hour, you can forget it,” said Kenneth Kearns,district manager of

buck ennis Bronx Community Board 10,where Co-op City is egory leader in this space,” said Mr. Rahaman, located. ON NY’s ad-tech startups scramble to unlock who in June moved the headquarters of his com- That’s why TRACK pany,StrikeAd,to the Flatiron district from Lon- he and others are don.“You wait too long,and that spot gets taken.” so excited about Metro-North in the Bronx potential riches of mobile marketplace news that the Finding the right match Metro-North each day but garnered less than 1% of U.S. ad The 39-year-old Briton founded his mobile Railroad is close 13 BY MATTHEW FLAMM dollars, according to eMarketer.This year, mo- advertising-technology firm in 2010, and spent to approving TOTAL STATIONS (among three bile ad spending is expected to grow by 80%, to the next year showing ad agencies how precisely it construction of a lines) It’s no secret that mobile devices are taking the $2.6 billion. could match their ads with the right audiences. station at Co-op place of computers.What’s not so obvious is that By 2016, it will be a $10.8 billion business. Identifying consumers and their tastes is a chal- City. Not sur- advertisers are still figuring out how to reach Hoping to strike it rich in the gold rush, New lenge on mobile devices,which often don’t support prisingly, the 8.1M consumers on their smartphones and tablets. York-based ad-tech entrepreneurs like Mr. Ra- cookies inside applications or in their browsers. board, shortly NUMBER OF RIDES to/from That’s why entrepreneurs like Alex Rahaman are haman are racing to distinguish themselves from The key to gaining market share is building a after being stations last year in a hurry. each other, and from the so-called first-genera- better advertising mousetrap, one that enables briefed on the There’s a fortune to be made in solving the tion mobile ad divisions of giants such as Google marketers to utilize mobile’s potential. That can plan by railroad mobile-advertising riddle. Last year, mobile and Apple. mean targeting users by location, so they can be officials, quick- 2/3 devices had a 10% share of adults’ media time “Now is the time to make your mark as the cat- See MOBILE on Page 24 ly passed a reso- PORTION OF PASSENGERS lution support- heading north ing the project. The response in three other east Bronx Soda wars are bubbling over neighborhoods that could also get stations has FAMOUS MOVIE ban and 15,545 letters expressing next seven weeks to officially reach the most people in the short- also been enthu- REFERENCE Beverage industry support for it were submitted to weigh all the information. More est amount of time,” said Eliot siastic, and with Marty the Zebra in tries to whip up the agency as of July 20. than 11,000 pro-ban letters ar- Hoff, a spokesman for New York- good reason. Madagascar That’s bad news for the rived within a 24-hour ers for Beverage Choices, a month- The idea of wanted to use a Metro-North train opposition to ban on beverage industry, period late last week,a old coalition of businesses and adding stations to flee to which is trying to city spokeswoman others opposed to the ban. along the Am- Connecticut oversize soft drinks whip up a storm of said. The group of movie-theater op- trak line that Sources: Metro-North Railroad, DreamWorks public disapproval, The board mem- erators, restaurants and beverage runs out of Penn Animation BY LISA FICKENSCHER hoping to pressure city bers, who are appointed manufacturers is spearheaded and Station and officials into abandon- by the mayor, will an- funded by the American Beverage links up with Metro-North’s New If a majority of New Yorkers are ing the proposal. The nounce their decision on Association.Mr.Hoff is a senior di- Haven line in New Rochelle has opposed to Mayor Michael industry is focusing its Sept. 13 on whether to rector for APCO Worldwide, a been a dream of many for years. Bloomberg’s proposal to limit the efforts on July 24, when limit the serving size of large public relations firm retained Only recently, however, pushed by size of sugary drinks sold in restau- the city’s Board of sugary beverages such as by the ABA. Borough President Ruben Diaz Jr. rants and other outlets—as some Health is holding a hear- sodas, teas, fruit juices Since the mayor made interna- and others, has the idea really gath- polls suggest—they are not regis- ing on the plan and when and sports drinks to 16 tional news by unveiling his contro- ered steam. tering their anger where it would the public comment peri- ounces. versial plan on May 30, the ABA In the Bronx the potential bene- count. od ends. On Tuesday, the “This is the only op- has mobilized a strong response, fits loom large. Just last month, in a According to the city’s Depart- board members will not portunity for the public to spending big money to try to stop formal pitch to the City Council ment of Health and Mental Hy- accept any more written comment on this propos- what it fears will be a domino effect Transportation Committee, the

giene, just 600 letters opposing the comments, taking the al, and we are trying to See SODA WARS on Page 24 newsbloomberg See CONNECTED on Page 12

July 23, 2012 | Crain’s New York Business | 3 20120723-NEWS--0004-NAT-CCI-CN_-- 7/20/2012 6:20 PM Page 1 IN THE Time runs out for owners MARKETS of midtown time-shares by Aaron Elstein

Overbooking brings low cost. The property at 200 W. 56th St. was a bankrupt hotel that value of Manhattan Mr. Eichner bought and converted into two properties, the 286-suite Club stakes down; Manhattan Club and the Park Cen- a scramble for exits tral Hotel. The cost of work on the club alone came to $141 million,according to Continuum’s website. BY AMANDA FUNG Initially, shares were marketed at prices starting at $10,000, depend- Late last year, Jimmy Cottone took ing on the size of the unit. Today, drastic action. He dumped his share they start at $35,000. in the Manhattan Club,a ritzy mid- Back in 1996, Mr. Eichner, who town Manhattan time-share con- declined to be interviewed for this dominium, for a mere $1. That’s article,told The New York Times that wide world photos wide $16,999 less than he paid for it near- / if all the time-shares were sold, ap ly a decade earlier, but one buck END OF TIME? Sales of stays at Ian Bruce 18,000 customers a year would buy more than what he figured was its Eichner’s Manhattan Club have fallen short. seven-day stays or the flex-time actual value. equivalent. As of 2010, exactly wide world photos wide

“The time-share is completely 14,872 had been sold. Since then, /

worthless,”said Mr.Cottone,a Long where owners voice their com- there has been a growing number of ap Islander who has not only seen his plaints has drawn 493 members resales—including owners turning annual maintenance fee quintuple to since it was created in 2007. Three their shares back to Mr. Eichner, $2,000, but found he was unable to years later, a website called the Dis- who rose to prominence as a devel- Here’s one stock book time to use his share no matter gruntled Manhattan Club New oper 30 years ago but lost several how far in advance he called to make York Timeshare Owners, which properties in the real estate collapse reservations, owing to overbooking. chronicles the owners’ plight, went of the 1990s and three years ago sur- that’s smoking In the end, after finding no tak- up. More recently, a similar site ap- rendered his $3.9 billion Las Vegas ers for his stake on eBay, Craigslist peared on Facebook, and Time- casino resort to a bank. and other online sites, Mr. Cottone Sharing Today published an article While time-shares are relatively handed it over to the Manhattan by a former owner titled “My Man- rare in Manhattan, some have been hen the going gets tough, the nicotine-addicted Club’s owner-operator, Ian Bruce hattan Club Experience: A Tale of quite successful. Shares in 78 units reach for a cigarette. And that’s why, if you’re an Eichner, chairman of Continuum Frustration.” at the New York Hilton that were set investor whose taste runs toward smooth, Co., and other firms, for a dollar. It’s all a far cry from the situation aside for time-shares in 2001 sold W Philip Morris International Mr. Cottone has loads of com- in 1997, when the club opened. At out in about four years, according to consistent earnings growth, is a pany in a once-glistening project the time,it was billed as the first ma- Kim Kreiger,senior vice president of stock you might want to latch onto. that has drawn a growing army of jor time-share condominium in Club and Resorts at Hilton Grand Before going any further, let’s acknowledge there is much detractors over the course of nearly New York,where visitors could have Vacations. That led to the ground- to dislike about a company that makes and relentlessly five years. A Yahoo online group a high time in the city at a relatively See TIME on Page 23 markets a product that causes cancer—and death. And let’s admit that cigarettes are socially taboo in New York and many other places around the nation. Still, there are lots of cafés, bars and even offices around the world where people can and do light up; and Philip Morris, trading at around $90 last week, offers a unique way to profit from

these people’s stinky habit—and to than-9% decline in its much small- earn a healthy dividend to boot. er Western European sales. Philip Morris International, While growth prospects overseas which was split off years ago from are a good reason to hold the com- the U.S.-focused Altria, generates pany’s shares—at least until Russia, about 60% of its earnings from sales Indonesia and other nations change in Asia, Africa and the part of Eu- their views on the acceptability of rope that happily lies outside the smoking—the chief attraction in to- eurozone.That’s a great place to be, bacco investing is the guilty pleasure because while belt-tightening of inhaling the dividends. And that smokers in Spain, Italy,Greece and is where Philip Morris actually out- other economically challenged na- does even its peers. tions are switching to cheaper cig- Last year, the company paid arettes, Russians in particular just shareholders a 3.4% dividend, a can’t seem to get enough of the sum that equaled 45% of the com- Marlboro Man. pany’s operating cash flow—or just In June,the company launched a half the percentage doled out by Al- new brand in Russia called Marl- tria. That means that even though boro ClearTaste, a cigarette that Philip Morris has upped its quar- management billed in a conference terly payout by nearly 50% in the call last week as one that “addresses past two years, according to adult smoker product preference.” Bloomberg,it would appear to have Whatever that means,it looks like a ample room to raise it even more. big hit. Philip Morris’ volumes in There’s something you can put Eastern Europe rose by 5% last in your pipe and, if you insist, quarter, helping offset a greater- smoke it. Ⅲ -12% DECLINE IN THE PRICE OF GOLD since it peaked in late February. The decline in the metal’s cost, long seen as a measure for the level of fear in the market, suggests investors

istockphoto are a bit more optimistic about the state of the world.

4 | Crain’s New York Business | July 23, 2012 CN015257.qxp 7/10/2012 11:10 AM Page 1

CHARTING A NEW COURSE IN PHARMACY BENEFIT MANAGEMENT

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www.catamaranRx.com 20120723-NEWS--0006-NAT-CCI-CN_-- 7/20/2012 6:21 PM Page 1 THE Broadway gets into family act INSIDER as kid-friendly shows rake it in by Andrew J. Hawkins and Shane Dixon Kavanaugh

under 18,a spokeswoman said.Even Annie, Cinderella Michelle Obama took her daughters to join the five to see the show a week ago. Producers are taking notice. In youth-oriented addition to five major family- musicals now playing friendly musicals currently on the Great White Way, three new ones are in the works for next season.An- BY MIRIAM KREININ SOUCCAR nie will be the first to open,followed by a newly imagined Cinderella, Family entertainment used to be a scheduled to bow sometime in Feb- movie and popcorn.Now many par- ruary. Matilda the Musical, currently ents think little of shelling out $150 playing in London,opens on Broad- per person for tickets to a Broadway way April 11. newscom show. That may be why family- Greater need to fill seats Donors tepid on Weiner comeback friendly productions like Newsies, Producers of these upcoming Spider-Man: Turn Off the Dark and shows say they fell in love with these e’s got $4.5 million in his campaign fund and hasn’t ruled The Lion King were sold out for the musicals for a variety of reasons and out a return to politics. But former Rep. Anthony Weiner week ended July 15 (the last week weren’t specifically looking for ma- (above) might first have to mend fences with supporters for which numbers were available), terial that would appeal to kids. But who helped make him a front-runner for mayor before while a more traditional show like ‘There are more as skyrocketing costs push the price he sexted his way out of office last year. Nice Work if You Can Get It grossed of big shows up to the $15 million HCalls to his former donors and surrogates yielded few willing to only 58% of its potential—even kids going to mark, the need to fill more seats is discuss him. Longtime Democratic donor Bernard Schwartz, who cut Mr. with Matthew Broderick as its star. greater than ever before. Weiner a check for the maximum $4,950 in 2007, wouldn’t pick up his “There are more kids going to Broadway than “If you’re going to do a big musi- phone. “Mr. Schwartz would be happy to speak about anything other Broadway than ever before,” said cal, family entertainment is a great than Mr. Weiner,” said an assistant to the BLS Investments head. Arielle Tepper Madover, the lead ever before’ way to go,” said Robyn Goodman, Another former top donor said, “I do not want my name associated producer on the revival of Annie, the lead producer of Cinderella. with any story about him.” which opens Nov. 8. “Those shows have a much larger But fundraiser Cindy Darrison said, “He was always one of the best Indeed, Disney Theatrical Pro- appeal.” when it came to serving his constituency, and I am interested in learning ductions’ success—which started Such productions have longer what he wants to do next in terms of public service.” with The Lion King in 1997—has way League.And theater experts say staying power as well, because they Mr. Weiner has no plans for a campaign—a disappointment to some spawned an industry. The percent- those numbers have grown since. At can become a sort of rite of passage followers of the mayoral race. age of admissions by theatergoers Spider-Man—which has been for a child. If a large-enough num- “If Anthony were running for office, I’d be one of the first three under 18 in the 2010-2011 season grossing about $1.8 million a ber of parents think they should take phone calls he’d make,” said developer Adam Rose. “I think he’s terrific, rose to 10.4% from 9.1% the previ- week—between 30% and 40% of the each child to Lion King when they and frankly he’s better than any of the other candidates.” ous season, according to the Broad- audience at each performance are See BROADWAY on Page 24

Cooking up into a more pivotal part of the campaign,” the source said. a campaign Of the five major candidates, Ken Biberaj, a vice president at the Mr.Thompson had the worst JACK RESNICK & SONS Russian Tea Room seeking term- fundraising total in the last six- limited Gale Brewer’s Upper West month cycle, at $500,000. He has is pleased to announce the following lease renewal Side City Council seat, has raised about $1.3 million on hand. “If I at $130,000 in four and a half were him, I’d be incredibly months since announcing his bid. disappointed with this filing,” said 255 GREENWICH STREET He’s one of the few candidates in one insider. formerly known as the city’s matching-funds program “He has to pick up his 75 Park Place to “max out” for the 2013 race. fundraising, there’s no question,” More than $20,000 of his said campaign guru Hank THE CITY OF NEW YORK donations came from colleagues in Sheinkopf. “But Bill Thompson has the restaurant business, including been counted out before.” 207,812 Square Feet Landmarc and Ditch Plains chef Entire 6th, 7th, 8th & 9th Floors and co-owner Marc Murphy, B.R. Guest Hospitality President Stephen Chamber chief’s Hanson and Tracy Nieporent, a partner challenge in Myriad Restaurant Group. “Ken is a small-business man, Backers of mandatory paid-sick- so he understands what we go leave legislation are touting a poll through,” said Mr. Nieporent. that shows 64% of Democratic 110 East 59th Street, New York, New York 10022 women would be less likely to 212.421.1300 Thompson to retool support a mayoral candidate who www.resnicknyc.com opposes it. Supporters have irked After a mediocre fundraising business leaders by recruiting Gloria cycle, Bill Thompson will shake up Steinem and actress Cynthia Nixon to his mayoral campaign. One champion the cause. insider said it could include new “I challenge these celebrities,” leadership or campaign co- said Nancy Ploeger, president chairs. A source close to of the Manhattan Chamber the campaign said moves of Commerce, which would be “evolutionary.” opposes the bill. “What do “Changes are these women really know developing to help round about running a small out the team and start to business and what the costs build momentum as we get Nancy Ploeger of this bill will be?” Ⅲ

For daily political and government news, subscribe to CRAIN’S INSIDER @ www.crainsnewyork.com/insider

6 | Crain’s New York Business | July 23, 2012 20120723-NEWS--0007-NAT-CCI-CN_-- 7/20/2012 5:28 PM Page 1

BUSINESS

of American63% workers think the president has a big impact on job creation PEOPLE Source: Korn/Ferry International

EXECUTIVE MOVES DENISE MARI is looking to add to Organic Avenue’s Real Estate Board of roster of eight retail New York: Rob locations. Speyer, 42, was elected chair of the organization, effective January 2013. He is president and co- chief executive of Tishman Speyer. Peter Braus, 43, was appointed chairman of its stores committee. He is managing principal of the New York office of Lee & Associates. Vidaris Inc.: Israel Berger, 59, joined the marketplace for specialty consultancies as chief executive, a newly created position. He was previously president of Israel Berger & Associates. Healthcare Association of New York State: Dennis Whalen, 59, was named president of the hospital and continuing-care association, effective in 2013. He is currently executive vice president and chief operating officer. NK Architects: Stephen Aluotto, 54, was promoted to president at the regional planning and design firm. He was previously principal. Eagle Bulk Shipping Inc.: Adir Katzav, 42, was promoted to chief financial officer. He was previously director of financial reporting. UM: Eileen Kiernan, 42, joined the marketing communications agency as global chief marketing officer, a newly created position. She was previously executive vice president of human experience strategy at MediaVest. Documentation and Conservation of

buck ennis Buildings, Sites and Neighborhoods of GOTHAM GIGS the Modern Movement: John Shreve Arbuckle, 48, was elected president of the conservation advocacy group for modern architecture’s New Growing organically York/tristate chapter. He is New York business development manager at Hoffmann Architects Inc. Scholastic: Tara Welty, 32, was Organic Avenue seeks to spread the vegan gospel promoted to editor in chief at Scholastic Instructor magazine. She was For dinner, Denise Mari feeds her 2-year-old son, Avenue’s eight existing retail locations.The result previously editor of Scholastic Art magazine. A healthy Oliver, a bowl of vegetables—only vegetables. is a healthy 100% compounded annual growth Foundation for the National Institutes Recently, he slurped up broccoli soup with rate since 2006 and revenue of almost $20 of Health: Jim Donovan, 45, was $20M in elected to the board of directors. He is avocado. “I don’t think kids are born picky eaters,” million. ¶ To further educate the public, Ms. Mari a managing director at Goldman revenue Ms. Mari said. People become picky when fed a is writing a cookbook, to be published by Sachs Group Inc. poor diet, she added. And so Ms. Mari’s 12-year- HarperCollins in 2013. And to bolster her The Lightstone Group: Christian gives the Gabrielsen, 50, joined the real estate old vegan food company, Organic Avenue, not company’s growth, she has sold a minority stake developer as president of its securities firm some only sells fruit and vegetable juices and other to Weld North, an investment firm whose chief division. He was previously executive vice president and national sales juice produce-centric prepared foods, it also aims to executive is Jonathan Grayer, the former CEO of manager at Thompson National educate adults on how to enjoy as many education giant Kaplan Inc. He’s now chairman Properties. Dennis Freed, 54, vegetables as Oliver apparently does. ¶ Though of Organic Avenue. ¶ With the funds, Ms. Mari, joined as senior vice Ms. Mari, 38, is fully vegan, she describes many of who serves as executive director, and her CEO, president of her customers as “toe dippers”—New Yorkers Doug Evans, plan to open new retail locations— development and construction. He who spend a few days on a juice cleanse or who one in Roslyn, L.I., and one in Chelsea are was previously incorporate her juices into their regular diet. On already in the works—and develop new products. principal at Lend Lease Corp. the menu as well are organic salads, raw falafel They plan to expand the website and ultimately Greg McGowan, 49, and nut milks, all made at a 15,000-square-foot bring Organic Avenue’s food and ethos to the rest joined as senior vice president of kitchen in Long Island City, Queens, and of the world. “The vision,” she said, “has always Eastern sales in the securities division. He was previously senior vice delivered by refrigerated truck to one of Organic been global.” —cara eisenpress See EXECUTIVE MOVES on Page 8

July 23, 2012 | Crain’s New York Business | 7 20120723-NEWS--0008-NAT-CCI-CN_-- 7/20/2012 5:27 PM Page 1

BUSINESS PEOPLE

Anthony D’Agostino, 53, joined the manager. She was previously new EXECUTIVE MOVES government agency as director. He development specialist at City CORPORATE LADDER continues as managing director at Bank Connections Realty. Continued from Page 7 of America Corp. Universal Music Group: Michael Seltzer, president at Thompson National Krossover: Dalmo Cirne, 40, joined the 46, was promoted to senior vice president A REAL MOVE UP Properties. startup video coordinator as director of of business and legal affairs for East Money-Media: Dan Fink, 36, was mobile, a newly created position. He was Coast labels. He was previously senior THE MANHATTAN ASSOCIATION OF REALTORS has appointed the founder of a promoted to managing director at the previously handset developer at ESPN. vice president of business and legal affairs local real estate boutique to be its next president. Starting in August, Robb 33Across: Financial Times company. He was Chung Cheong, 38, joined the for the Island Def Jam Music Group. Pair, 49, will lead the real estate trade association’s efforts through local previously senior vice president of sales social graphing company as vice Oxygen Media: Puja Vohra, 40, was and marketing. president of product management. He promoted to senior vice president of and global initiatives. Stroz Friedberg: M. Scott Peeler, 41, was previously vice president of marketing, a newly created position. She Originally from Virginia, Mr. Pair founded Harlem Lofts, a brokerage that joined the digital risk management and advertising and publisher products at was previously vice president of ad sales centers on Harlem, in 1999. When he moved to New York, he explored investigations firm as managing director. AT&T Interactive. marketing. opportunities at the Manhattan Association of Realtors and the Real Estate He was previously a partner in the Neil Fried, 33, joined as vice president Emily Yeomans, 29, joined as senior Board of New York before electing to focus primarily on the former. He has commercial litigation department and a of business development. He was director of communications. She was been a REBNY member for 10 years. “The Real Estate Board of New York member of the white-collar defense, previously director of business previously director of communications regulatory investigations and litigation development at Yahoo. at Bravo Media. seems to support the larger and more entrenched real estate firms,” he group at Chadbourne & Parke. Hughes Hubbard & Reed: John Fellas, 49, Gannett: Fergus Mellon, 36, joined the said. “I chose to support a competing trade Drawing Center: Molly was promoted to co-chair of the media company as senior vice president organization that lends itself to supporting Gross, 46, joined the arbitration and alternative dispute of pricing and planning, a newly created smaller boutique firms and nonprofit as resolution practice at the law firm. He position. He was previously senior entrepreneurs.” communications was previously partner. director of revenue strategy and As president of the association, a director. She was Man Made Music: development at Meebo Inc. previously senior Natalia Romiszewski, ACG New York: Todd volunteer position, he plans to continue publicist for the 29, joined the music- Kinney, 42, was to focus on smaller firms because he Whitney Museum. for-media company as appointed to the sees them as the future of real estate. New York Foundation director of business association of “If you want to sell it, you need to live it,” for the Arts: Dena Muller, 40, joined as development and professionals’ said Mr. Pair, who resides in Harlem with director of new initiatives, a newly music strategy. She board of directors his wife and four sons. created position. She was previously previously worked at as vice president Mr. Pair has been a member of executive director of ArtTable. Sound Language, of membership, GreenbergFarrow: Scott Loikits, 39, joined which she founded. effective Sept. 1. He is the organization for five years, the architecture firm as design studio Halstead Property Development currently director at BDO USA. including two as president director. He was previously a design Marketing: Jeffrey Krantz, 34, joined the —emily laermer of the Manhattan Multiple principal at Peter Pran + H Architects. real estate sales and marketing firm as Listing Service. The Emmis Communications: Donyshia associate broker and senior vice EXECUTIVE PROMOTIONS association’s current Benjamin, 38, was promoted to president. He was previously vice The fastest way to get an announcement into president, Frederick marketing director of Emmis New York. president of sales and marketing at City Crain’s is to submit online. Fill out the form Wohlfarth, will remain She was previously senior director of Connections Realty. at www.crainsnewyork.com/section/ promotion and digital media. Kristin Krantz, 34, joined as licensed real executive_moves. The Executive Moves column on its board for a year. Securities Investor Protection Corp.: estate salesperson and on-site sales is also available online. —EMILY LAERMER

CRAIN’S Business Breakfast Forum: EVENT INFORMATION: DATE: Wednesday , September 12, 2012 Meet PLACE: The Plaza, 768 5th Avenue TIME: Joseph Lhota Networking Breakfast: 8:00 - 8:30AM

CHAIRMAN AND CEO, MTA Program: 8:30 - 9:30AM Join Crain’s New York REGISTER HERE: Business for a discussion with Joseph www.crainsnewyork.com/events-jlhota Lhota, Chairman and or call the Events Hotline at (212)210-0739. CEO, Metropolitan COST TO ATTEND: Transportation Authority $85 for individual ticket(s) if pre-registered before July 24th; $95 thereafter.

(MTA). Mr. Lhota will $850 for table(s) of ten if pre-registered before July 24th; $950 thereafter. discuss the MTA’s You must be pre-registered to attend this event. No refunds permitted. Pre-register online by going to crainsnewyork.com/events. For more mounting debt, the information, call the Events Hotline at 212-210-0739. upcoming fare hike and For sponsorship opportunities, please contact Trish Henry at his plans to upgrade the nation’s largest 212-210-0711 or [email protected] transit system. He will be questioned by Crain’s Assistant Managing Editor Erik

Engquist and another journalist. SPONSORED BY: HOST SPONSOR: REGISTER HERE: www.crainsnewyork.com/events-jlhota

8 | Crain’s New York Business | July 23, 2012 20120723-NEWS--0009-NAT-CCI-CN_-- 7/19/2012 6:19 PM Page 1

SMALL BUSINESS Damage control: a booming niche Corporate clients turn approach an asset. ways to tap their talents. Brodeur stance, Logos Consulting Group When one client, a hedge fund, Partners, a midsize communications focuses on crisis management, crisis to small advisory was sued by a former trader for firm based in Boston, for instance, communications and executive wrongful dismissal,Mr.Illingworth’s has created a partnership hub called coaching.“We don’t talk to media or firms to end public solution involved hiring a forensic the Circle Group, which corrals the investors,” said Helio Fred Garcia, DEFUSER: Montieth relations nightmares computer expert to unearth security participation of smaller firms such as president.The small firms negotiate Illingworth helps violations by the litigant that con- Montieth & Co. and Logos Con- their own fees with clients but oper- clients avoid tributed to the suit’s dismissal. sulting Group on larger projects. ate in tandem with Brodeur. media disasters.

BY ALEC FOEGE “Everyone has to get on the same “Small agencies are doing very Certainly, corporations and big buck ennis page and gather all the facts,”he said. inventive work,” said Andrea corporate communications consul- ontieth Illingworth Some larger players in the field are Coville, CEO of Brodeur Partners. tancies are adapting to the evolving a Democratic political strategist. has advised clients recognizing the strengths of tiny ones Each boutique firm brings a partic- media landscape. However, “it’s all That spells opportunity for smaller caught up in news like Mr. Illingworth’s—and finding ular expertise to a project. For in- so fragmented now,”said Joe Trippi, niche players, like his firm. Ⅲ scandals including the Bernie Madoff Maffair,the Dominique Strauss-Kahn case and the suit filed against photographer Annie Leibovitz when she defaulted on a restructuring loan. Acting as a combination of spin doctor, psychologist, management consultant and litigation adviser, Mr. Illing- SURVEY worth and his four SAYS employees at Montieth & Co.,a boutique “special situations” consul- of71% large tancy in Manhat- companies reported tan, have done experiencing a their job well if no reputation- one is aware they threatening crisis have done it at all. SAVE ENERGY, SAVE CASH, in the past two years In a previous decade, headline- grabbing business WITH GREEN INCENTIVES and corporate of40% chief communications crises were typical- officers say their ly managed by FOR MULTI-FAMILY BUILDINGS firm can handle a large public rela- social-media- tions firms and based crisis management advi- Source: Spencer Stuart and Weber Shandwick sory consultancies. EARN UP TO $20,000 TO GO GREEN! survey, 2012 But in today’s complex media universe, where major stories are broken on Twitter, the specialized expertise and lack of bu- reaucracy at smaller special-situations firms puts them in hot demand. “Montieth has a very detailed,in- tegral understanding of litigation— what matters and what doesn’t,” said attorney Josh Epstein,chair of litigation and managing partner in the New York City office of SorinRand, who has hired Mr.Illingworth’s firm numerous times to manage media issues on sensitive finance-related cases.“He’s also very nimble in a way a larger firm couldn’t be.” Flexible approach Some clients are also drawn by lower fees, enabled by the lean over- head at boutique practices. “Large firms are geared toward large engage- ments,” usually involving a partner and many associates—and often cost $50,000 to $75,000 per month, said Mr.Illingworth,whose firm brings in more than $1 million annually. LET THE GREEN TEAM show you how To capture high-profile accounts, Mr. Illingworth emphasizes your building can save energy and money. his team’s unconventional thinking. None of his employees has a tradi- Visit conEd.com/greenteam or call 877-634-9443. tional public relations background, said the former war reporter—and he considers their multidisciplinary

To sign up for Crain’s SMALL BUSINESS newsletter, go to Scan for more information. www.crainsnewyork.com/smallbiz.

July 23, 2012 | Crain’s New York Business | 9 20120723-NEWS--0010-NAT-CCI-CN_-- 7/19/2012 7:26 PM Page 1

OPINION CRAIN’S NEW YORK BUSINESS Losing Lin is bad business editor in chief Rance Crain publisher, vp Jill R. Kaplan yria is in chaos, London’s LIBOR scandal has familiar with a star-obsessed corporate environment knows. EDITORIAL editor Glenn Coleman morphed into the latest financial debacle and Mr. Dolan decided last year to build the team around deputy managing editors Valerie Block, the U.S. economic recovery is being Carmelo Anthony, who was acquired from the Denver Erik Ipsen assistant managing editors Erik Engquist, undermined by state budget cuts, a Paul Nuggets after leading that team past the first round of the Jeremy Smerd Volcker-Richard Ravitch task force reported playoffs exactly once in seven seasons. In letting Mr. Lin go, senior producer, news Elisabeth Butler Cordova news producer Lauren Elkies last week. But there’s a more pressing issue Mr. Dolan is doubling down on his Anthony investment. contributing editor Elaine Pofeldt commanding our attention. But despite the forward’s great talent, his isolationist style of columnists Greg David, Alair Townsend crain’s health pulse editor Barbara Benson The New York Knicks let Jeremy Lin walk into the arms play diminishes his teammates’ effectiveness.That’s why the senior reporters Theresa Agovino, of the Houston Rockets. Nuggets improved after their sticky-fingered star left. Aaron Elstein, Lisa Fickenscher, Matthew Flamm, S Daniel Massey, Miriam Kreinin Souccar This was more than a basketball decision for the Madison Mr. Lin, who made his splash with the Knicks while Mr. reporters Amanda Fung, Andrew J. Hawkins, Square Garden Co., the owner of the Knicks. Executive Anthony was sidelined with an injury, is the anti-Melo. He Shane Dixon Kavanaugh, Adrianne Pasquarelli web reporter, producer Ian Thomas Chairman James Dolan had to consider the business shares the ball and art director Steven Krupinski deputy art director Carolyn McClain bonanza that Mr. Lin triggered before a knee injury ended There’s a lesson unfailingly praises staff photographer Buck Ennis the point guard’s sensational run after just 25 starts. Lin teammates. In contrast, copy desk chief Steve Noveck here for anyone copy editor Thaddeus Rutkowski merchandise flew off the shelves.The secondary market for Mr. Anthony ran his data editor Suzanne Panara Knicks tickets soared. National TV networks added Knicks familiar with first Knicks coach out assistant data editor Emily Laermer researchers Eva Saviano, Amy Stern games. MSG’s market value grew by $500 million. of town and last week interns Esthena Brutten, Ken Christensen, Although matching Houston’s three-year, $25.1 million star-obsessed called Mr. Lin’s Cara Eisenpress, Emily Lundeen, Mary Shell offer for Mr. Lin would have put the Knicks well over the workplaces contract offer ONLINE AND INTERACTIVE SERVICES National Basketball Association’s salary cap and triggered “ridiculous,” even general manager, online & e-commerce strategy Kira Bindrim penalties of perhaps $35 million, three more years of though his own salary senior web developer, interactive Linsanity would have been worth far more. Indeed, MSG’s is $19.4 million.That Chris O’Donnell stock price is down about 10% since investors began signaled that he wanted Mr. Lin gone. A day later, he was. ADVERTISING, MARKETING AND PRODUCTION suspecting No. 17 would depart. The Knicks are at risk of being knocked off their exclusive advertising director Trish Henry senior account managers Irene Bar-Am, So why did the team not keep him? Mr. Dolan was said to perch here by the rival Nets, who arrive in a new Brooklyn Courtney McCombs, Sheryl Rose, Suzanne Wilson be upset that Mr. Lin stoked the Rockets to increase an offer arena this fall with an improved roster of players known for account executive Jill Bottomley Kunkes sales coordinator Danielle Wiener that the Knicks were planning to match. Maybe so. But protecting, rather than stabbing, their teammates’ backs. It newsletter product manager Alexis Sinclair credit Todd J. Masura (313-446-6097) there’s also a lesson here in business management, as anyone will be fascinating to see which management model prevails. director, audience development Michael O’Connor senior marketing manager Catherine Schutten CRAIN’S ONLINE POLL COMMENTS event producer Courtney Williams reprint sales manager Lauren Melesio production and pre-press director Michael Corsi advertising production manager Let Chelsea Market grow Suzanne Fleischman Wies TO SUBSCRIBE: TENANT: BAD CALL, My parents For print and digital subscriptions or customer SCOTT STRINGER moved The Lobster service, e-mail [email protected] Place into Chelsea or call 877-824-9379 (in the U.S. and Canada) or As the owner of The Lobster Market in the mid- 313-446-0450 (all other locations). $3.00 a copy for newscom the print edition; or $99.95 one year, $179.95 two Place Inc., a New York City 1990s, which were years, for print subscriptions with digital access. IS IT TIME FOR ANTHONY business with two locations and difficult times in www.crainsnewyork.com/subscribe 100 employees—55 in Chelsea this community. WEINER TO GET BACK Market alone—I’m baffled by Newspaper headlines TO ADVERTISE: Borough President Scott about the neighbor- Contact Advertising Director Trish Henry at INTO POLITICS? [email protected] or call 212-210-0711. Stringer’s decision to oppose hood back then were www.crainsnewyork.com/advertise Yes. Politics is what he’s best at. Voters will the Chelsea Market expansion more likely to focus forgive him for his personal failings. project. on violent crime, buck ennis FOR INFORMATION ON OUR EVENTS: Mr. Stringer’s shameless vandalism and the drug trade been a part of a community of Contact Event Producer Courtney Williams at No. It’s too soon after the sexting scandal for pandering to a small contingent than the relatively benign businesspeople who took a risk [email protected] or 212-210-0257. www.crainsnewyork.com/events him to be taken seriously as a candidate. of Chelsea residents who discussions of architectural on this neighborhood only to oppose the project is a slap in Date of poll: July 16 relevance that have taken center see it flourish, I take offense at TO CONTACT THE NEWSROOM: the face to the retailers, stage in our local public forums 407 votes Mr. Stringer’s suggestion that 711 Third Ave., New York, NY 10017-4036 commercial tenants, today. And just as Chelsea Chelsea Market hasn’t done editorial phone: 212.210.0277 fax 212.210.0799 construction unions and Market has changed the context enough for this community. Entire contents ©copyright 2012 Crain Communications Inc. developers who’ve worked of the public conversation about Moreover, I strongly support All rights reserved. ®CityBusiness is a registered trademark tirelessly to make Chelsea this neighborhood over the past the Chelsea Market expansion of MCP Inc., used under license agreement. 25% Market the beloved community 18 years, the expansion project for the 1,000 permanent jobs it PUBLISHED BY CRAIN COMMUNICATIONS INC. Yes asset that it is. And what’s will only continue to contribute will create, the 600 union chairman Keith E. Crain worse, it ignores the reality that to the security, prosperity, construction jobs it will require, president Rance Crain in these times of economic opportunity and excitement that and for the opportunities it will secretary Merrilee Crain 75% challenge, this city needs have become emblematic of the continue to present to treasurer Mary Kay Crain No executive vp, operations William Morrow government representatives who Chelsea community today. entrepreneurs like myself and senior vp, group publisher Gloria Scoby will support a full spectrum of Having been here when my Chelsea Market neighbors. group vp, technology, circulation, businesses—like those that Chelsea Market was in its —ian macgregor manufacturing Robert C. Adams Chelsea Market houses—to infancy and the Chelsea area President vp/production, manufacturing David Kamis help put our neighbors to work. was in dire straits, and having The Lobster Place Inc. chief information officer Paul Dalpiaz founder G.D. Crain Jr. (1885-1973) Mrs. G.D. Crain Jr. FOR THIS WEEK’S QUESTIONS: CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to [email protected]. Send columns of 475 chairman (1911-1996) Go to www.crainsnewyork.com/poll to have your say. words or fewer to [email protected]. Please include the writer’s name, company, address and telephone number.

10 | Crain’s New York Business | July 23, 2012 20120723-NEWS--0011-NAT-CCI-CN_-- 7/19/2012 6:10 PM Page 1

is pleased to announce the

renewal and expansion of over

180,000 square feet to

at Broad Financial Center 33 Whitehall Street New York, NY

Augustus B. Field, IV John M. Cefaly of Cushman & Wakeﬁeld, Inc. represented the tenant newscom HIGH-SPEED MATH: $151 billion over 30 years to rapidly connect 50 million along Amtrak’s Boston-D.C. corridor, host to a $2.5 trillion economy Edward Goldman Jonathan Cope ROBERT D. YARO of CBRE, Inc. represented the owner underperformed those of Washing- A rail network for ton, New York and Boston—within an hour of their more vibrant peers. Experience in Europe and Asia has demonstrated that these reduced the 21st century travel times can benefit the economies of both thriving and lag- mtrak’s recent proposal for a $151 billion project to gard cities. Although $151 billion seems like modernize the Northeast rail corridor and bring a daunting sum, that total is meant world-class high-speed trains to the region is good to be allocated over three decades or news for New Yorkers and all 50 million people liv- longer on infrastructure that will ing between Washington, D.C., and Boston. serve the region for close to a century. Annually, it amounts to a tiny ABy 2025, the first phase of this project would bring two new fraction of the federal budget. tracks under the Hudson River into an expanded Penn- What’s more, Amtrak estimates Moynihan station complex in Manhattan, doubling commuter that the new system would net $1.6 billion annually by 2040. That al- and intercity rail capacity in the play a vital role in the region’s trans- ready makes the plan exceptional highly congested trans-Hudson portation network, substantial in- among transit systems, which in corridor. True high-speed rail, sim- creases to transportation capacity densely populated areas also gener- ilar to systems in operation can only be accomplished through ate enormous returns on investment throughout Europe and Asia,would high-speed rail, which offers a by delivering workers to jobs effi- come a decade or so later. unique ability to move large num- ciently, attracting businesses to Both the conventional and high- bers of people with little harm to the transit hubs, encouraging business speed components of Amtrak’s plan environment. and leisure travel and removing cars are vital for a simple reason:The re- Under Amtrak’s proposal, by from highways. gion’s transportation network has 2030, midtown Manhattan will be Still, a project of this magnitude reached its full capacity. Without only 37 minutes from Philadelphia will require private investment. more ability to move people and and 94 minutes from Washington. Around the world,the private sector goods, the region will stagnate as has been an enthusiastic rail investor productive hours are lost to trans- in dynamic marketplaces, where portation delays and commerce Our future steady revenue from ridership al- gravitates toward places where do- ready can be counted on. ing business is easier. competitiveness Amtrak’s proposal will be debat- The problem is clear to people ed in the coming months, and traveling between New Jersey and depends on changes will certainly be made to its New York. Over the past genera- engineering, financing and imple- COLLECTION LITIGATION & JUDGMENT ENFORCEMENT tion, 90% of new commuters into this investment mentation. But the Northeast’s fu- Manhattan have come from west of ture competitiveness will require the Hudson. On many days, their that we make this investment: Most trips to the city are arduous—trains of New York’s peers—including All types of debt collection matters and general are crowded and too infrequent,and London, Paris, Tokyo, Shanghai, commercial litigation, trials, and appeals. delays are common. On the road, Hong Kong and a growing list of traffic jams stall buses and cars. With departures every 15 to 20 others—have already built or are While New York represents the minutes, travelers will have a real al- building high-speed rail. Unless we AGGRESSIVE - RESOURCEFUL - EXPERIENCED - RESPONSIVE region’s worst choke point, similar ternative to the gridlock at the air- move ahead now, the capacity for bottlenecks exist up and down the ports and on I-95. growth in the Northeast’s $2.5 tril- Northeast corridor, as Amtrak, This will fundamentally change lion economy will be undercut for commuter and freight trains jockey the economic geography of the decades to come. for space along a century-old net- Northeast, expanding the potential 100 LAFAYETTE STREET - SUITE 601 | NEW YORK, NY 10013 work of bridges, tunnels and signal- skilled workforce for New York and Robert D. Yaro is president of 212-608-5300 | WWW.DORAZIO-LAW.COM ing systems. other cities. It will also bring cities the Regional Plan Association. Although airports,roadways and such as Baltimore and Philadel- Greg David is on vacation. conventional rail will continue to phia—whose economies have

July 23, 2012 | Crain’s New York Business | 11 20120723-NEWS--0012-NAT-CCI-CN_-- 7/19/2012 6:56 PM Page 1

IN THE BOROUGHS BRONX

RAILROADED could get here easily and affordably.” Talk to most public officials, and Four stops may be added along the new project seems like a slam Getting connected Amtrak’s route in the Bronx dunk. PROPOSED NEW STATIONS “This is such a big bang for your Continued from Page 3 blocks from four major hospitals: Co-op City buck,”a Metro-North spokesperson borough president pronounced the Montefiore Medical Center,the Al- said.“The tracks are already there,all plan to be the “most important bert Einstein College of Medicine, Morris Park you’d have to do is build the stations transportation investment in the Jacobi Medical Center and Calvary Parkchester and purchase a few locomotives.” Bronx since construction of the sub- Hospital. NEW HAVEN LINE (METRO-NORTH) ways during the early 20th century.” Montefiore alone employs Hunts Point Penn Station plan His speech came less than a year 17,500 people, a third of whom Unfortunately, there is one other after Metro-North submitted an commute from outside the Bronx.It piece of the puzzle that must be put environmental assessment to the also draws nearly a half-million pa- HELL GATE LINE (AMTRAK) in place first—and it’s a big one.The Federal Transit Administration on tients and countless family mem- plan is for the new trains to run all the possibility of adding stops in bers and friends each year. the way to Penn Station,which can- Co-op City, Morris Park, Park- Grand Central not happen until the $8 billion-and- chester and Hunts Point—a project Market access Penn Station Terminal counting East Side Access project is that also has the appeal of being rel- Another stop down the line, the finished in 2019, at the earliest. atively cheap. The total cost is ex- station at Hunts Point would ease In the meantime, Kellie Terry- pected to be about $350 million, a access to the sprawling Hunts Point could benefit from easier access for Transportation Authority data, the Sepulveda, executive director of the mere drop in the transit bucket Terminal Market, the largest food customers and employees.The pro- Bronx has the highest reverse-com- Point Community Development compared with the Second Avenue distribution center on the East duce market has roughly 7,000 em- mute rate in the country, with people Corp., while delighted about the subway’s $5.3 billion tab and the $2 Coast. The market is currently ployees, a third of whom commute streaming out of the city’s only main- stop, is worried nonetheless that its billion being spent merely to extend served by the 6 train, which has a from beyond the Bronx. land borough to suburban locales in arrival could drive up local real es- the No. 7 train a bit deeper into the stop a half-mile away. “I have no idea where they all Westchester and Connecticut. tate prices and possibly drive out West Side. “I think it’s a fabulous idea,” said live, but … anything that can open “This is a vastly underserved area,” small business owners. What’s more,the new stations in Myra Gordon, executive adminis- up opportunities for people to trav- said Jim Cameron, chairman of the “I challenge us to figure out how the Bronx wouldn’t just make life trative director at the Hunts Point el to a neighborhood where there Connecticut Rail Commuter Coun- this will help people who are easier for residents in places like Co- Produce Market, pointing out that may be available jobs can only be a cil.“There are jobs here that are going renters and not owners,” she said. op City. The proposed Morris Park there are about 600 small business- positive thing,” she said. wanting that could easily be filled by “I’m hoping it will be carefully ad- station would be located just a few es on the Hunts Point peninsula that In fact,according to Metropolitan people who live in the Bronx if they dressed.” Ⅲ

With that approximately 12,000- FROM square-foot space now destined to crain’s AROUND house a Walgreens, the neighborhood’s despair has turned into THE CITY activism. Last month, community mem- QUEENS bers, joined by Borough President Marty Markowitz, tried unsuccess- Jamaica Station’s fully to persuade Walgreens to either Events incorporate a grocery in the space or CALENDAR artsy newcomers build one in the adjoining parking With the Long Island Rail Road’s lot or on the roof. Last week, resi- Sutphin Boulevard underpass proj- dents tried a new tack, circulating a ect nearing completion, two arts or- petition to boycott the store that ganizations have signed up to move Walgreens plans to open early next Ensure Your Next into what will be called The Shops year. Already, 500 Windsor Terrace at Station Plaza. It will consist of residents have signed. three stores totaling 5,500 square Leonora Stein, owner of Babbo’s Event is a feet in a bright new pedestrian plaza. Books nearby,said she and other or- The $2 million project was con- ganizers aim to get 5,000 signatures ceived by the Greater Jamaica De- by the time Walgreens begins work velopment Corp. as a way of en- on the building in the next few Blockbuster livening the heavily trafficked weeks. “If we do, maybe they’ll re- station at street level. consider,” she said. “And if they “It transformed an inhospitable, build, we’ll actually boycott.” poorly lit area into something really For now,carpools convey the eld- Post your next event on the Crain’s Events attractive,” said a spokesman for the erly to nearby supermarkets, and a GJDC. “You can actually walk twice-weekly free shuttle runs to the Calendar and we will help you market it to an through there at night and feel safe.” Fairway in Red Hook. Chashama, a Manhattan-based —cara eisenpress influential audience that regularly attends in-person arts organization that repurposes vacant properties, will move into a BRONX conferences. storefront in August with an exhibition of youth art. Brooklyn-based Pols view B’klyn BroLab, which already has a sculp- model for armory Featured Listing Includes: ture on display in downtown Jamaica called Humps and Bumps,an Seeking the development rights for artistic interpretation of speed the Kingsbridge Armory in the bumps, will move into another. Bronx, Young Woo & Associates GJDC is sponsoring the arts brought 20 officials from that bor- groups until the storefronts are ough to downtown Brooklyn recent- leased to private businesses. ly.They came to see Dekalb Market, —hilary potkewitz the kind of mixed-use development that Mr. Woo hopes to bring to the sprawling, long-vacant armory. BROOKLYN The developer says it is reaching out to the community. “We have to To start your listing today, visit: Food fight in win the crowd,” Mr. Woo said. “We’re doing all our homework.” A www.crainsnewyork.com/section/events_calendar/submit Windsor Terrace rival bid by Wall Street banker When their Key Foods store closed Kevin Parker would turn Kings- Or contact Joanne Barbieri at (212) 210-0189 or in May, Windsor Terrace residents bridge into ice rinks for hockey and [email protected] worried about where they’d buy gro- skating events. ceries until another market arrived. —andrew j. hawkins

12 | Crain’s New York Business | July 23, 2012 20120723-NEWS--0013-NAT-CCI-CN_-- 7/19/2012 6:10 PM Page 1

REAL ESTATE INSIDE: THE LISTS Real Capital Analytics’ Top Property Sales PAGE 15 CoStar’s Top Manhattan Office REPORT Leasing Deals PAGE 16

THEY WILL COME: Tommy Craig isn’t worried about finding tenants for Hines’ Landlords newest office tower, which will rise near turn on Bryant Park. green plumbing Water-saving taps, toilets used to save money and boost LEED ratings

BY ANNE FIELD

It’s hard for an office building to be greener than the new Bank of America Tower.The 54-story,2.1 million-square-foot LEED Plat- inum-certified Goliath features everything from a state-of-the- art air-filtration system and its own co-generation plant that supplies 65% of the tower’s energy, to something a bit more basic that most people don’t talk about. The spire, also known as 1 Bryant istockphoto Park, boasts a B OF A complex sys- Developer for all tem that col- TOWER’S lects rainwa- SAVINGS ter and distributes it Gallons per annum to the building’s roughly seasons takes NY 2-3M 300 toilets, From waterless then filters, urinals disinfects and Multitalented, deep-pocketed Hines reuses it in those same builds success far from home 1.1M commodes. From sinks and To further cut BY THERESA AGOVINO low-flow toilets down on water use, all bathrooms When three of the world’s leading financial com- 13M panies—Morgan Stanley, Goldman Sachs and Total, including are equipped use of rainwater with low- UBS—all select the same outfit to develop office and recyled flow, dual- buildings for them, that firm must have some- wastewater flush toilets, thing going for it. waterless uri- But when that same outfit is tapped by the nals and low-flow faucets. city’s largest commercial landlord to consult on a The annual water savings total about 13 million gallons. That big development project, that firm must be spe- not only translates to lower water cial. That’s what happened last month when SL and sewage bills, but also to less Green Realty Corp. chose Dallas-based Hines strain placed on the city’s over- for help on a building it is planning to construct taxed sewage system. More im- across the street from Grand Central Terminal. portant, for growing numbers of “Hines is one of the pre-eminent developers landlords across the city, such in the world,” said Isaac Zion, co-chief invest- savings help them tout their buildings as green—an increas- ment officer at SL Green, whose specialty is buy- ingly attractive claim in the eyes ing and managing properties, not building of many tenants. them. “We look forward to benefiting from its “If you want to be a sustainable See HINES on Page 14

See GOING FOR GOLD on Page 14 buck ennis

July 23, 2012 | Crain’s New York Business | 13 20120723-NEWS--0014-NAT-CCI-CN_-- 7/19/2012 6:11 PM Page 1

REPORT REAL ESTATE

been lackluster in recent months as many tenants opt to renew their Hines weathers all kinds of markets leases instead of incurring the ex- pense of a major move. Hines is going ahead without a Continued from Page 13 for about 10% of Hines’ $15 billion DEVELOPER’S At 40 Mercer St., Hines’ timing tenant,hoping it will have signed at expertise.” of real estate assets under manage- was perfect. The 40 units sold out in least some leases by the time the Meanwhile, Hines made news of ment in the U.S. PROJECTS a year and a half,and the construction building opens in 2014. Mr. Craig its own in the city last month. It an- In New York as elsewhere,one of FOR ITS OWN was completed in 2007. The devel- says he isn’t particularly worried, nounced it had reached an agree- the company’s strengths is its di- oper was not so lucky, however, at 1 even though there will be other ment with JPMorgan Chase to fi- verse base of business,which helps it PORTFOLIO Jackson Square in the West Village. new buildings hitting the market nance a 28-story, 450,000- weather all kinds of markets. Hines Marketing of the 30-unit condo was with plenty of space to lease, such square-foot office tower kitty- develops and manages its own com- affected by the Lehman-Brothers as 250 W. 55th St. and 51 Astor corner from Bryant Park. Remark- mercial as well as residential proper- global financial meltdown, so it took Place. ably, that deal was struck even ties but will also provide the same three and a half years to sell out.Con- “We have the best site in mid- though Hines has yet to secure an services for third parties for a fee. struction was completed in 2011. town, and we’ll be delivering a bou- anchor tenant—a milestone that Currently,Hines manages 13 build- Now Hines is moving ahead with tique, 21st-century building,” said banks have insisted on in recent years ings in the city.It also buys buildings another condo project, at 56 Mr.Craig.“We’ll be ready for the re- as a prerequisite before considering a developed by others for its portfolio. Leonard St. Originally,it was devel- bound.” loan. In addition, Hines is restarting Similarly, Hines has a multiplic- oping the property for a fee on behalf a client’s stalled condo tower at 56 ity of cash sources. It has a publicly of owner Alexico, which subse- Rare black eye Leonard St. in TriBeCa, and trying traded real estate investment trust quently went bankrupt. While Mr. Mr. Craig is still seeking financ- to line up financing for a condomini- that it uses to buy and sell proper- Craig will not comment about Alex- ing for what is commonly called the um/hotel it plans to put up next to ties. Hines also raises equity capital ico, he said that Dune Partners and MoMA tower, which is slated to in- the Museum of Modern Art. directly from institutional investors, Goldman Sachs’ Whitehall Funds clude floors for the museum, a hotel “New York has never been more including investment and pension are providing financing to complete and luxury condo units.In a rare pub- important to us as a firm,”said Tom- funds. the project, which is being designed lic black eye, the City Planning my Craig, a senior vice president Over the years, the company has by Pritzker Prize winners Jacques Commission refused to sign off on and partner in Hines’ New York carefully cultivated a reputation for Herzog and Pierre de Meuron. Hines’ original plan. It said the de- metro office in Manhattan. “Be- its professionalism, integrity and While the relative strength of the sign was incomplete and eliminated cause New York is a global financial the quality of its buildings.That sta- city’s residential market has drawn 200 feet that the developer had been capital,everything we do here is am- tus stems in part from its longstand- Hines’ attention in recent years, the given special permission to add, re- plified as we seek funding from all ing habit of using award-winning 885 Third Ave./Lipstick firm has made its mark as an office ducing the building to 1,050 feet. over the world.” architects.That started when Hines Building (above) building developer,owner and man- Mr.Craig declined to discuss the selected Pritzker Prize winner 35 stories ager.Many of its rivals in the city,in- incident. Lots of local projects Phillip Johnson to design the Lip- 592,000-square-foot office tower cluding the Related Cos.and Silver- Whitehall Funds is already a The 55-year-old global company stick Building. Similarly, the devel- Completed 1986; sold 2004 stein Properties Inc., are better partner in the deal, but Hines still has plenty of projects that it can point oper picked Jean Nouvel, another 31 W. 52nd St. known, but few can match Hines’ needs to line up more financial to here.Since Hines opened in Man- Pritzker Prize winner, for its first 30 stories attention to every detail. CBRE backers for the $1 billion-plus proj- hattan 24 years ago, it has become residential project here, 40 Mercer 730,000-square-foot office tower Vice Chairman Darcy Stacom said ect—a task Mr.Craig acknowledges one of the city’s best-regarded— St. in SoHo, which opened six years Competed 1986; sold 2007 that even the areas that house me- is more challenging than securing though still least-known—develop- ago. The Frenchman is also design- 450 Lexington Ave. chanical operations in Hines’towers funds for the relatively small Bryant ers. It made an indelible first impres- ing Hines’ tower near MoMA. 40 stories are immaculate. Park tower. sion in 1986 by developing what has “They deliver great architecture, 1 million-square-foot office tower “You can eat off the floor,” said Still, he believes it will flow, become known as the Lipstick and they deliver on their promises,” Completed 1992; sold 2005 Ms. Stacom, who has sold several pointing to the success of other Building, the pink, oval-shaped of- said Reid Price, managing director 40 Mercer St. buildings for Hines over the years. high-end residential developments fice tower just east of Citicorp Cen- of new development at Town, a 13 stories “They even have a manual about like One 57, a tower rising on West ter. It has developed 11 buildings in Manhattan-based residential real 40-unit residential condo how to wash the windows.” 57th Street. Its developer, Gary the city either for itself or others, in- estate agency. He noted that while Completed 2007; sold out 2007 The windows at what will be Barnett, said that a penthouse there cluding 31 W. 52nd St., a 30-story some developers hire big-name ar- Hines’newest office tower will boast fetched more than $90 million. 1 Jackson Square office building, and 450 Lexington chitects,they then cut corners,espe- 11 stories striking views of Bryant Park. The “We are very confident in the Ave., a 1 million-square-foot office cially if the market softens. Not 36-unit residential condo question is, will there be tenants to strength of the high-end market,” tower. The New York area accounts Hines, he said. Completed 2011; sold out 2011 enjoy them? The leasing market has said Mr. Craig. Ⅲ

Going for gold in green bathrooms Bowls of plenty LEFT TO THEIR OWN DEVICES, most tenants give their toilets short shrift. Continued from Page 13 have received a LEED rating from tougher rules will go into effect, When companies do go behind locked building, you have to do something the U.S. Green Building Council. mandating new water-use stan- doors, they are more interested in about water savings in bathrooms,” For tenants in Class-A properties, dards for plumbing fixtures. Land- improving their bathrooms’ said Jordan Barowitz, director of ex- having a high LEED designation is lords will need to make sure their aesthetics than ecological ternal affairs at the Durst Organiza- generally de rigueur. toilets, for example, use 1.28 gallons friendliness, according to Michele tion.“As one piece of a larger puzzle, of water per flush, compared with Boddewyn, president of architectural it’s an important selling point.” the currently mandated 1.6 gallons, firm Alan Gaynor & Co. istockphoto While green bathrooms rarely Tougher city while urinals’ water use must be While upgrades typically end up with get top billing in discussions of en- halved to 0.5 gallons per flush. the installation of more-efficient toilets, sinks and other fixtures, their primary vironmentally friendly buildings, rules mandate Landlords who beat those standards mission is to step up the look with new lighting, floor tiles and countertops, landlords are increasingly relying on can and will be rewarded. among other things. water-efficient fixtures to burnish “You get more LEED points if new water-use The cost of a recent retrofit of a pair of bathrooms, each with three toilets their buildings’ green credentials. you exceed the minimum require- Russell Unger,executive director standards ments,” said Robert Sedlak, senior and sinks, in a Plaza district building came to about $165,000, according to of the Urban Green Council and the vice president of engineering firm Ms. Boddewyn. That was more than 30% above a standard treatment, but New York chapter of the U.S.Green WSP Flack + Kurtz. still well under the $200,000 that a top-of-the-line job would have cost. Building Council, goes so far as to liken the part that water-efficient Rapid payback plumbing plays in a building’s For tenants, it is those points, of water, the savings that might be Westchester simply by installing in- greenness to the role of violins in a “Otherwise, that’s an indication rather than actual cost savings, that passed to tenants are relatively expensive low-flow aerators. The symphony orchestra. “You don’t the product isn’t high-quality,” said matter, for the simple reason that in small. move is expected to cut water usage come to hear just the violins,but you Mr. Unger. strict financial terms, those benefits From the landlord’s perspective, by more than 13 million gallons a expect them to be there.” The issue is particularly impor- are modest. though, the payback for retrofitting year,with a payback of as little as one tant to large publicly held corpora- “The idea that you’re improving bathrooms with water-efficient to two months. LEED incentive tions as well as virtually all Euro- the environment is much more equipment can be not only real but “It’s something we definitely An important driver of that in- pean ones. Meanwhile, the city is compelling than the actual cost sav- rapid. SL Green recently upgraded make a point of discussing with terest is commercial tenants’ in- pushing aggressively in the same di- ings,”said Mr.Barowitz.In fact,at a faucets in the bathrooms of 53 of its prospective tenants,” said Jay Black, creasing desire to work in places that rection as well.Starting next month, cost of $3.39 for about 750 gallons properties in New York City and director of sustainability. Ⅲ

14 | Crain’s New York Business | July 23, 2012 20120723-NEWS--0015-NAT-CCI-CN_-- 7/19/2012 6:57 PM Page 1

THE Real Capital Analytics’ Top Property Sales LIST Biggest commercial transactions in NYC in the first half of 2012, ranked by price

Address/ TOP FOUR property type/ Transaction price Sq. ft. or Price per Interest 100% value Close submarket (in millions)1 # of units sq. ft. or unit conveyed (in millions) date Buyer Seller SALES

795-808 Columbus Ave., $630.0 654 $963,303 100.0% $630.0 1/12 UDR Inc./MetLife Chetrit Group/ 1 801 Amsterdam Ave. (Columbus Square) Stellar Management Apartment Upper West Side 641-649 Fifth Ave. (Olympic Tower) $499.0 421,809 $2,371 49.9% $1,000 5/13 Crown Acquisitions Onassis Foundation 2 Office/retail Midtown east 530 Fifth Ave. $390.0 537,800 $725 100.0% $390.0 1/31 Crown Acquisitions/ Moinian Group/David Werner 3 Office Murray Hill Properties Midtown west 14 Wall St. $294.4 1,009,806 $292 100.0% $294.4 4/4 Alex Rovt Capstone Equities/Carlyle 4 Office Group Downtown 105 W. 29th St. (The Beatrice) $280.0 301 $930,233 100.0% $280.0 6/22 Equity Residential JD Carlisle Development 5 Apartment Corp./DLJ RE Capital LIST RANK 1 Midtown west Partners Address 4 New York Plaza $270.0 1,016,406 $266 100.0% $270.0 5/23 EDGE Fund Advisors/ Harbor Group Int’l/ 801 Amsterdam Ave. 6 Office HSBC Alternative Capstone Equities Downtown Investments PRICE PER UNIT $963,303 10 E. 53rd St. $257.0 388,000 $662 100.0% $257.0 1/10 SL Green/CPP Investment Hines OBO Fondo Pensioni 7 Office Board Cariplo Midtown east 222 Broadway $230.0 760,000 $303 100.0% $230.0 4/18 Beacon Capital Partners/ Bank of America 8 Office L&L Holding Downtown 724 Fifth Ave. $223.0 56,400 $3,954 100.0% $223.0 1/31 SL Green/Stonehenge David Frankel Realty 9 Retail Partners/Jeff Sutton Midtown east 45 W. 139th St. (Savoy Park) $216.0 1,802 $119,867 100.0% $216.0 6/20 L&M Development Vantage Properties/ 10 Apartment Partners/Citigroup Area Property Partners Upper Manhattan 33 Maiden Lane (2 Federal Reserve Plaza) $207.5 570,000 $364 100.0% $207.5 2/28 Federal Reserve Bank Invesco RE OBO 11 Office Hypovereinsbank Downtown 161 Sixth Ave., 233 Spring St. (1 SoHo Square) $200.0 537,237 $372 100.0% $200.0 5/8 Stellar Management/ Earle W. Kazis & Ronald LIST RANK 2 12 Office Imperium Capital Mount ADDRESS Downtown 641-649 Fifth Ave. 50 Central Park South $198.0 261 $758,776 100.0% $198.0 1/30 Westbrook Partners Millennium Partners PRICE PER SQ. FT. 13 (Ritz-Carlton Central Park) Hotel $2,371 Midtown west 900 Third Ave. $172.7 595,105 $592 49.0% $352.5 3/7 Paramount Group Investa Office Fund 14 Office Midtown east 1372 Broadway $166.3 541,752 $307 100.0% $166.3 6/11 Starwood Capital Group/ BLDG Management/ 15 Office Herald Square Properties David Werner Midtown west 1372 Broadway $150.0 n/a n/a 100.0% $150.0 6/14 New York Life/Annuity BLDG Management/ 16 Land Corp. David Werner Midtown west 2 Cooper Square $143.1 144 $993,403 100.0% $143.1 1/15 Wafra Investment Advisory Atlantic Development Group 17 Apartment Group Midtown south 130 Prince St. $140.5 88,000 $1,597 100.0% $140.5 6/4 Invesco RE Waterman Interests/ 18 Office JPMorgan LIST RANK 3 Midtown south ADDRESS 304 Park Ave. South $135.0 215,000 $628 100.0% $135.0 6/12 SL Green Walter & Samuels 530 Fifth Ave. 19 Office Midtown south PRICE PER SQ. FT. $725 518 Fifth Ave. $132.0 295,000 $447 100.0% $132.0 3/26 Thor Equities RFR Realty 20 Office Midtown west 148 Lafayette St. $126.5 154,953 $816 100.0% $126.5 5/11 Epic U.K. Ltd. Property Group Partners/ 21 Office BET Investments Downtown 70 W. 45th St. (Cassa NY Hotel) $126.0 165 $763,636 100.0% $126.0 5/4 HNA Group Assa Properties 22 Hotel Midtown west 1370 Broadway $124.4 280,000 $444 100.0% $124.4 4/18 Normandy Real Estate Sitt Asset Management/ 23 Office Partners Carlton Associates Midtown west 12 W. 57th St. $120.0 84,000 $1,429 100.0% $120.0 3/12 Solow Realty Gafisa S.A. 24 Office Midtown west LIST RANK 4 29 E. 29th St. (King & Grove Hotel) $116.0 277 $418,773 100.0% $116.0 6/5 King & Grove Rockpoint Group/Property 25 Hotel Markets Group ADDRESS Midtown east 14 WALL ST. 1-Partial interest transactions included at the prorated share of the 100% property value. Real Capital Analytics Inc. is an independent research firm focused exclusively on capital investment markets for commercial real estate. RCA offers comprehensive information on activity in the industry. In addition to collecting transactional information for property sales and financings, it interprets the data, including capitalization rates, market trends, pricing and sales volume. The firm publishes a PRICE PER SQ. FT. series of Capital Trends reports and offers an online service that provides real-time, global transactional market information. Visit www.rcanalytics.com. $292

July 23, 2012 | Crain’s New York Business | 15 20120723-NEWS--0016-NAT-CCI-CN_-- 7/19/2012 6:11 PM Page 1

THE CoStar’s Top Manhattan Office Leasing Deals LIST Biggest transactions in the first half of 2012, ranked by square feet

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

1 1515 Broadway1 1,606,000 Viacom Inc. CBRE SL Green Realty Corp. SL Green Realty Corp. Times Square 2 1 New York Plaza1 1,152,763 Morgan Stanley Smith Barney Newmark Grubb Knight Frank Brookfield Office Properties Inc. Brookfield Office Properties Inc. Financial District 3 601 Lexington Ave.2 490,527 Citibank CBRE Boston Properties Inc. Jones Lang LaSalle Plaza District 4 100 Church St.2 372,520 City of New York Law Department CBRE SL Green Realty Corp. Newmark Grubb Knight Frank World Trade Center 5 340 West St.2 372,382 Bloomberg LP CBRE Eugene M. Grant & Co. Eugene M. Grant & Co. Hudson Square 6 114 W. 47th St.2 362,907 Bank of America/Merrill Lynch Cushman & Wakefield Inc. The Durst Organization The Durst Organization Times Square 7 1745 Broadway2 361,044 Random House Inc. Cassidy Turley SL Green Realty Corp. SL Green Realty Corp. Columbus Circle 8 1 Chase Manhattan Plaza2 337,000 Milbank Tweed Hadley & McCloy Cushman & Wakefield Inc. JPMorgan Chase & Co. Newmark Grubb Knight Frank Financial District 9 1372 Broadway3 264,800 Ross Stores Inc. Studley IX 1372 Owner IX 1372 Owner Penn Plaza/Garment 10 200 & 205 Hudson St.4 257,580 Havas Newmark Grubb Knight Frank Trinity Church Real Estate Cushman & Wakefield Inc. TriBeCa 11 2 Penn Plaza2 225,045 Information Builders Inc. SL Green Realty Corp. Vornado Realty Trust Vornado Office Management Inc. Penn Plaza/Garment 12 33 Whitehall St.1 180,519 Fitch Inc. Cushman & Wakefield Inc. Stawski Partners CBRE Financial District 13 1 Penn Plaza2 146,677 U.S. General Services Administration Studley Vornado Realty Trust Vornado Office Management Inc. Penn Plaza/Garment 14 320 W. 31st St.2 144,916 Technical Career Institute Jones Lang LaSalle Overtime Properties LLC Cushman & Wakefield Inc. Penn Plaza/Garment 15 1 World Trade Center5 138,773 Condé Nast Publications CBRE The Durst Organization and Cushman & Wakefield Inc. World Trade Center Port Authority of New York and New Jersey

16 605 Third Ave.2 137,000 Univision Communications Inc. CBRE Fisher Brothers Management Fisher Brothers Management Grand Central 17 1 Liberty Plaza4 132,092 Investment Technology Group Inc. Newmark Grubb Knight Frank Brookfield Office Properties Inc. Brookfield Office Properties Inc. World Trade Center 18 200 Lafayette St.4 130,000 JCPenney Welco Kushner Cos. CBRE and Newmark Grubb SoHo Knight Frank

19 105 E. 17th St.6 125,000 New York University Newmark Grubb Knight Frank The Related Cos. UGL Services Gramercy Park 20 350 Fifth Ave.5 119,682 Coty Inc. Cassidy Turley Malkin Properties Newmark Grubb Knight Frank Penn Plaza/Garment 21 488 Madison Ave.2 107,300 TBWA \ Worldwide Feld Real Estate The Feil Organization Jeffrey Management Plaza District 22 600 Madison Ave.4 103,457 Alvarez & Marsal Cassidy Turley and Studley Lawrence Ruben Company Inc. Lawrence Ruben Co. Plaza District 23 650 Madison Ave.4 100,788 Memorial Sloan-Kettering Newmark Grubb Knight Frank The Carlyle Group Cushman & Wakefield Inc. Plaza District 24 55 E. 52nd St.4 93,365 IntercontinentalExchange (ICE) CBRE Fisher Brothers Management Co. Fisher Brothers Management Co. Plaza District 25 200 Hudson St.1 87,896 David Yurman Cushman & Wakefield Inc. Trinity Church Corp. Cushman & Wakefield Inc. TriBeCa 26 250 Park Ave.4 82,313 Pernod Ricard CBRE AEW Capital Management Cassidy Turley Grand Central 27 350 Hudson St.4 77,955 Tory Burch Cushman & Wakefield Inc. Trinity Church Real Estate Trinity Real Estate Hudson Square 28 245 Park Ave.1 74,766 Angelo Gordon & Co. Newmark Grubb Knight Frank Brookfield Office Properties Inc. Brookfield Office Properties Inc. Grand Central 29 17 Battery Place South4 73,321 New York Film Academy Newmark Grubb Knight Frank The Moinian Group Newmark Grubb Knight Frank World Trade Center 30 622-626 Broadway2 69,005 Take-Two Interactive Software Inc. CBRE Yuco Management Inc. Newmark Grubb Knight Frank Greenwich Village 31 116-120 W. 32nd St.4 67,500 CUNY Newmark Grubb Knight Frank Pan Am Equities Newmark Grubb Knight Frank Penn Plaza/Garment 32 601 Lexington Ave.2 61,844 Merrill Lynch Jones Lang LaSalle Boston Properties Inc. Jones Lang LaSalle Plaza District 33 1345 Sixth Ave.6 57,179 Ion Trading Jones Lang LaSalle Fisher Brothers Management Co. CBRE Columbus Circle 34 1251 Sixth Ave.2 54,982 Consulate General of Canada in Studley Mitsui Fudosan America Inc. Newmark Grubb Knight Frank Times Square New York

35 44 Wall St.1 54,000 Cullen & Dykman Cushman & Wakefield Inc. Swig Burris and Zamir Equities ABS Partners Real Estate Financial District 36 1345 Sixth Ave.6 53,365 McKay Shields Cushman & Wakefield Inc. Fisher Brothers Management Co. CBRE Columbus Circle 37 1 Park Ave.2 53,168 Magna Carta Cos. CBRE Vornado Realty Trust and Murray Vornado Office Management Inc. Murray Hill Hill Properties

38 260 Madison Ave.4 50,462 The Coca-Cola Co. Colliers International The Sapir Organization Cushman & Wakefield Inc. Grand Central 39 104 E. 25th St.4 50,000 Matchstick Group Olmstead Properties 25 Park Associates Colliers International Gramercy Park 40 140 William St.4 49,200 Pace University Newmark Grubb Knight Frank Crikos Lee & Associates NYC Insurance District 41 601 W. 26th St.5 47,144 McGarryBowen CBRE RXR Realty RXR Property Management Chelsea 42 99 Park Ave.4 45,855 Right Management Inc. USI Real Estate Brokerage Services OSL Shipping & Development Inc. Jones Lang LaSalle Grand Central 43 1500 Broadway4 45,337 About.com Byrnam Wood Tamares Realty CBRE Times Square 44 1411 Broadway5 44,181 Jones Apparel Group/Jones New York CBRE Blackstone Group CBRE Penn Plaza/Garment 45 261 Madison Ave.4 44,000 WeWork Jones Lang LaSalle The Sapir Organization Cushman & Wakefield Inc. Grand Central 46 256-260 W. 38th St.4 43,050 Cache Inc. Jones Lang LaSalle East End Capitalz Newmark Grubb Knight Frank Penn Plaza/Garment 47 1251 Sixth Ave.6 42,800 The Bank of Tokyo-Mitsubishi Jones Lang LaSalle Mitsui Fudosan America Inc. Cushman & Wakefield Inc. Times Square UFJ Ltd.

48 498 Seventh Ave.2 42,599 Siemens Corp. CBRE George Comfort & Sons George Comfort & Sons Penn Plaza/Garment 49 405 Lexington Ave.2 42,062 Memorial Sloan-Kettering Newmark Grubb Knight Frank Tishman Speyer Tishman Speyer Grand Central 50 218 W. 18th St.4 41,642 Red Bull North America Inc. MB Real Estate Atlas Capital Group CBRE Chelsea

This list includes leases with terms of more than two years. 1-Renewal and expansion. 2-Renewal. 3-Extension and expansion. 4-New lease. 5-Expansion. 6-Sublease. CoStar Group Inc., a provider of information services to the U.S. and U.K. commercial real estate industries, offers customers access via the Internet to the most comprehensive verified database of commercial real estate information in the U.S. and U.K. For more information, visit www.costar.com or call (877) 7-COSTAR.

16 | Crain’s New York Business | July 23, 2012 CN015254.qxp 7/6/2012 3:00 PM Page 1

Client: Hermes Location: Paris, France Service: Leasing Asset type: Retail 8 rue de Sèvres in the 6th arrondissement of Paris

Hermes Opens Store in Paris

Hermes, the famous French luxury house has opened a pop-up store at 8 rue de Sèvres in the 6th arrondissement of Paris, France. The store will be entirely dedicated to its shoe collection for women, displaying spring-to-summer and fall-to-winter collections. The retail space is the same location Hermes chose to debut its first European store for its Chinese luxury brand, Shang Xia, which launched in China in 2010. Shang Xia will open in this location in early 2013. Cushman & Wakefield’s cross-border retail team, led by Pierre Raynal (Paris) and Thomas Casolo (Milan) represented Hermes in the transaction.

Moving with Confidence. 20120723-NEWS--0018-NAT-CCI-CN_-- 7/19/2012 6:58 PM Page 1

REPORT REAL ESTATE DEALS

BARE BONES 33 WHITEHALL ST. 1330 SIXTH AVE. 230 PARK AVE. ASKING RENT; TERM ASKING RENT; TERM ASKING RENT; Law firm’s ship : : Undisclosed; undisclosed Undisclosed; TERM: Mid-$70s undisclosed per SF; 15 years SQUARE FEET: 180,500 SQUARE FEET: SQUARE FEET: TENANT; REPS: Fitch comes in, at last 50,000 on second to 45,000 on 29th Ratings; John Cefaly and fourth floors and 30th floors Gus Field of Cushman & Wakefield Inc. TENANT; REPS: Knoll TENANT; REPS: cGivney and Kluger is expanding its longtime office down- Inc.; Scott Cahaly and Otterbourg Steindler Houston & Rosen town, at 80 Broad St. The Florham Park, N.J.-based law LANDLORD; REPS: Kipp- Martin Horner of Jones Lang LaSalle P.C.; Matthew McBride and Lewis Miller of firm, which specializes in defense work in insurance cases, Stawski Management Group; Jonathan CBRE Group Inc. Capeman and Edward Goldman of CBRE LANDLORD; REP: RXR Realty; William has renewed its lease for 15,000 square feet in the 36-story Edler of RXR Realty LANDLORD; REP: Monday Properties; building at South William Street and inked a lease for an BACK STORY: Fitch is renewing its lease Jordan Berger (in-house) additional 7,000 square feet there.The asking rent was $36 per square foot, at 33 Whitehall St., and adding 41,000 BACK STORY: 1330 Sixth Ave., which RXR M square feet. It will leave behind 100,000 purchased in December 2010 for $400 BACK STORY: Otterbourg has been a according to Todd Korren,who was the in-house representative for landlord square feet at 1 State Street Plaza, million, is nearly 90% occupied following tenant in the building since 1969, Savanna. John Moran and Fred Trump of Newmark Grubb Knight Frank according to the New York Post. this deal. according to the Commercial Observer. brokered the deal for the litigation firm. This is the fourth expansion at 80 Broad St.for McGivney and Kluger. It started out in the 82-year-old building in 2003, leasing a 3,000- square-foot space. With the new lease, the firm, which boasts 11 other offices from Florida to California, will have two contiguous full floors—a setup the firm had been trying to put together for months, either at 80 Broad St. or elsewhere. To make it possible, Savanna relocated several other tenants, Mr. Korren said. The tenant will move into its new space by early next year. CRAIN’S INSIDER —cara eisenpress THE INSIDE SCOOP ON NEW YORK POLITICS Meatpacking pioneer decamps Crain’s Insider provides Fashion designer Yigal Azrouël is bidding goodbye to the meatpacking district and moving uptown to vital coverage of Madison Avenue. Mr.Azrouël,who founded his la- government and political bel in 1998, recently signed a seven- year lease for 900 square feet at 1011 Madison Ave., on the corner of East issues of importance to 78th Street. The asking rent for the deal, which includes a 900-square- foot storage basement, was $640 a business executives, square foot. “Recently the tenancy has gone opinion leaders, politicos, up so tremendously [on Madison],” said Kelly Gedinsky, the Winick Realty Group broker who, along and others interested in with colleague Lori Shabtai, represented Mr. Azrouël. She noted that edgier retailers such as Rag & Bone the inner workings of and Vince have recently moved into the neighborhood just beyond the New York City and State north end of the gilded strip that runs from East 57th Street up to East 72nd Street. Government. Meanwhile, as Madison trends edgier, meatpacking is slipping more into the mainstream. Mall- type tenants, such as Ugg, Sephora and Levi’s,have recently moved into Stay informed on big issues,es hearings, hearings legislative the meatpacking district.Trendy pi- oneers like Mr. Azrouël, who opened his store on West 14th initiatives, proposed regulations, and key personnel Street in 2003, have begun to de- camp from the scene. Earlier this changes. year, Stella McCartney left for SoHo. Mr. Azrouël’s new store should open for business this fall. It re- places design house Luca Luca, which closed in May. In February, Mr. Azrouël opened a store for his Sign up today! lower-priced label Cut 25 on Grand Street. www.crainsnewyork.com/insider For the Madison deal, landlord S&S Madison Associates was represented by Shaun Moamem from Plaza Real Estate Group Inc. —adrianne pasquarelli

18 | Crain’s New York Business | July 23, 2012 20120723-NEWS--0019-NAT-CCI-CN_-- 7/19/2012 6:12 PM Page 1

FOR THE RECORD

for construction management of Jamaica tenant was represented by Cogent between June 22 and June 29, in a Bay bending weirs. The project seeks to Realty Advisors’ Mitchell Waldman. transaction worth $2,416,124. The ABOUT THIS SECTION reduce combined sewer overflow The landlord, Braun Management, was company also sold 388,982 shares of FOR THE RECORD is a weekly listing of information from the public record that discharge into the Bergen and Thurston represented in-house by Mendy Braun. common stock at prices ranging from can help businesspeople in the New York area find opportunities, potential basins. There will be a preproposal The asking rent was $32 per square foot. $9.92 to $9.98 between July 3 and July conference on July 27 at 10 a.m. at the 6, in a transaction worth $3,870,469. It new clients and updates on competitors. Department of Environmental ● Ariel Investments signed a lease for now directly holds 15,133,200 shares. To ask questions or get more information on this section, contact Crain’s Protection at 59-17 Junction Blvd. in 6,500 square feet at 340 Madison Ave. research department at [email protected]. Flushing, Queens. Attendance at the The investment management firm will ● MSC Industrial Direct Co. (MSM) preproposal conference is not mandatory occupy space on the 18th floor. The Mitchell Jacobson, chairman, sold but recommended. For more tenant was represented by Jones Lang 42,320 shares of common stock at prices protection on July 10. The filing cites information, contact Jeanne Schreiber at LaSalle’s Shawna Menifee. The ranging from $65.27 to $66.03 between NEW IN TOWN estimated liabilities of $500,001 to (718) 595-3456 or [email protected]. landlord, RXR Realty, was represented June 29 and July 3, in a transaction $1 million and estimated assets of $0 to by CBRE Group Inc.’s James worth $2,767,124. He now indirectly Companies that would like to have details $50,000. Among the creditors with the GOODS AND SERVICES Ackerson, Paul Amrich, Christie Harle, holds 189,056 shares. of openings published should submit largest unsecured claims are Verizon, ● Department of Health and Mental Howard Fiddle and Craig Reicher. descriptions following this format to owed $1,493.20, and Poland Spring, Hygiene Asking rents for the building range ● American Express Co. (AXP) [email protected], with owed $149. Requests proposals by 2 p.m. on Aug. 31 from the upper $60s to lower $70s per Douglas Buckminster, president of “New in Town” in the subject line. for nonprofit organizations to provide square foot. international consumer and global ● Nayci Contracting Associates permanent supportive housing in New network services, sold 44,557 shares of ● iCrave 1479 Fulton St., Brooklyn York City to very-low-income persons RETAIL common stock at $54.72 on June 14, in a 115 Court St., Brooklyn Filed for Chapter 7 bankruptcy living with HIV/AIDS. The request for ● Moda Operandi signed a 10-year lease transaction worth $2,438,137. He now The frozen-yogurt store opened in protection on July 6. The filing cites proposals can be obtained at 42-09 28th for 24,900 square feet at 315 Hudson St. directly holds 56,118 shares. Brooklyn Heights. It features 21 flavors estimated liabilities of $1,000,001 to St. in Long Island City, Queens. A The online retailer will occupy space on of self-serve yogurt. $10 million and estimated assets of $0 to preproposal conference will be held July the fifth floor. The tenant was ● Ralph Lauren Corp. (RL) $50,000. Among the creditors with the 30 at 10 a.m. at the same location. To represented by Cushman & Wakefield Ralph Lauren, chairman and chief ● Offsite largest unsecured claims are Francis E. attend the preproposal conference, email Inc.’s Owen Hane. The landlord, Jack executive, exercised options on 12,500 52 W. 39th St., Manhattan Eldridge, owed $40,000; Cross Check [email protected] Resnick & Sons, was represented in- shares of common stock at $25.33 on The private meeting and event space Inc., owed $5,507.75; and Con Edison, with “Attendee” in the subject line. For house by Brett Greenberg. The asking June 20, in a transaction worth opened in midtown. It offers three owed $3,000. more information, contact Christophe rent was in the $40s per square foot. $316,563. On the same day, he sold stories of event venues and corporate Hunt at (347) 396-6636 or 12,500 shares of common stock at prices meeting space. ● N.F.K.A Corp. [email protected]. ranging from $146.80 to $147.12, in a 1 Hudson St., Manhattan STOCK TRANSACTIONS transaction worth $1,838,328. He now ● Ovenly Filed for Chapter 11 bankruptcy ● Health and Hospitals Corp. directly holds 593,902 shares. 31 Greenpoint Ave., Brooklyn protection on July 3. The filing cites Seeks competitive sealed bids by 2 p.m. Following are recent insider transactions at The bakery company opened a estimated liabilities of $1,000,001 to on Aug. 3 for a custom horizontal New York’s largest publicly held companies ● Colgate-Palmolive Co. (CL) storefront in Greenpoint. It serves $10 million and estimated assets of $0 to wardrobe. For more information, contact filed with the Securities and Exchange Franck J. Moison, chief operating officer sweets, baked goods and Stumptown $50,000. Among the creditors with the Pedro Irizarry at (718) 317-3375 or Commission by executives and major of emerging markets, exercised options coffee. largest unsecured claims are Headley, [email protected]. shareholders. Listings are in order of on 12,666 shares of common stock at owed $90,359.95; Lipsky Goodkin & transaction value.The information was prices ranging from $53.06 to $60.68 on ● Superga Co., owed $35,000; and London Meat ● Office of the Comptroller obtained from Thomson Reuters. June 15, in a transaction worth 78 Crosby St., Manhattan Co., owed $13,000. Requests information by Aug. 6 to $743,159. On the same day, he sold The Italian sneaker brand opened a shop identify qualified firms and highlight ● BlackRock Kelso Capital Corp. (BKCC) 12,666 shares of common stock at in SoHo. It is the company’s first store in ● Stuzzicheria Inc. existing or potential independence- Virginia Retirement System sold $101.76, in a transaction worth the U.S. 305 Church St., Manhattan impairing work in advance of the 249,484 shares of common stock at $1,288,892. He now directly holds Filed for Chapter 11 bankruptcy issuance of an official audit request for prices ranging from $9.61 to $9.73 100,958 shares. Ⅲ protection on July 11. The filing cites proposals by the city. A written response COMPANY MOVES estimated liabilities of $100,001 to is strongly encouraged from any firm $500,000 and estimated assets of $0 to that intends to submit a proposal to the Companies that would like to have details $50,000. Among the creditors with the future audit request for proposals, to be DEALS ROUNDUP of recent moves published should submit largest unsecured claims are the New released on or about November 2013. descriptions following this format to York State Department of Tax and The official request for proposals can be [email protected], with Finance, owed $18,500; Teitel Brothers, accessed at www.comptroller.nyc.gov/ TRANSACTION SIZE “Company Moves” in the subject line. owed $17,901.21; and the New York bureaus/acc/rfps.shtm. For more SELLER/TARGET (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE City Department of Consumer Affairs, information, contact Maria Nicola BAMCO Inc. (Manhattan) $5,206.8 WellPoint Inc. SB M&A ● Acne Studios owed $7,665.15. Castiglione at (212) 669-8211 or Capital World Investors/ 33 Greene St., Manhattan [email protected]. Amerigroup Corp. The Swedish fashion and design brand ● Transcontinental Medical Management Goldman Sachs Group $4,128.5 Superior Aviation Beijing Co. SB M&A relocated to a storefront in SoHo. It is Corp. Merchant Banking Division the company’s first U.S. flagship store. 157A Huron St., Brooklyn REAL ESTATE DEALS (Manhattan), Onex Corp./ Filed for Chapter 7 bankruptcy Hawker Beechcraft Acquisition Co. ● FirstMark Capital protection on July 5. The filing cites Companies that would like to have details 100 Fifth Ave., Manhattan estimated liabilities of $100,001 to of their recent transactions appear in these Not disclosed/ $800.0 Williams Partners, Highstar Capital GCI The private equity company has Caiman Energy (Manhattan), EnCap Flatrock Midstream, $500,000 and estimated assets of $0 to listings should email descriptions following management of Caiman Energy relocated to the Union Square area. $50,000. The creditor with the largest this format to IThomas@crainsnewyork It was previously located at 120 unsecured claim is JPMorgan Chase .com, with “Real estate transaction” in the Technology Crossover $679.4 Thomson Reuters Corp. (Manhattan) SB M&A Ventures, LabMorgan Corp., W. 45th St. Bank North America, owed $250,000. subject line, or enter them online at Westpac Banking investment crainsnewyork.com/submitadeal. Deals are arm (Manhattan), Bank ● Second Time Around listed in order of square footage. of New York Mellon Corp.’s 70-49 Austin St., Queens GOVERNMENT CONTRACT private banking and securities The upscale consignment shop opened a OPPORTUNITIES COMMERCIAL investments (Manhattan)/ new store in Forest Hills. This is the ● Yext Inc. signed a seven-year lease for FX Alliance Inc. chain’s sixth store in New York and its Following are selected contract 36,900 square feet at 1 Madison Ave. The Blackstone Real Estate $495.0 Diamondrock Hospitality Co. SB M&A first outside Manhattan. opportunities recently announced by New Internet business services company will Advisors (Manhattan)/ York City agencies.To learn how to sell occupy space on the building’s fifth Hilton Boston; Westin ● Whisk goods and services to city government, visit floor. The tenant was represented by Washington, D.C., City Center; Westin San Diego; and 933 Broadway, Manhattan www.nyc.gov/selltonyc. For a searchable Newmark Grubb Knight Frank’s Neal Hilton Burlington, Vt. The kitchen supply store has opened a database of current procurement notices, Goldmacher and John Moran. The Tailwind Capital $300.0 Investcorp Bank BSC SB M&A second location in the Flatiron district. visit www.nyc.gov/cityrecord. Listings are landlord, SL Green Realty Corp., was (Manhattan), Black Canyon The original location is in alphabetical by category and department. represented in-house by Ashley Gee. Capital/Archway Marketing Williamsburg, Brooklyn. The asking rent was in the $50s per Services Inc. CONSTRUCTION SERVICES square foot. $230.0 ● Embassy Property Blackstone Real Estate Advisors SB M&A Department of Design and Construction Developments Ltd./ (Manhattan) (36%) BANKRUPTCIES Seeks competitive sealed bids by 2 p.m. ● Third Point signed a lease renewal and portfolio of tenanted on Aug. 22 for SculptureCenter expansion for 32,000 square feet at 390 office space The following listings are selected from the renovations in Queens. There will be a Park Ave. The hedge fund will occupy Not disclosed/China $200.0 Warburg Pincus (Manhattan) GCI most recent available filings by companies mandatory prebid conference on Aug. 7 space on the 18th and 19th floors. The Auto Rental seeking bankruptcy protection in the at 10 a.m. at the SculptureCenter, tenant was represented by Jones Lang Holdings Inc. Southern and Eastern Districts of New located at 44-19 Purves St. in Long LaSalle’s Alex Chudnoff. The landlord, Regis Corp./HC (USA) Inc. $163.5 Aderans America Holdings Inc. SB M&A York. Information was obtained from U.S. Island City, Queens. Bid documents are RFR Realty, represented itself in-house. (Manhattan) Bankruptcy Court records available on available at www.nyc.gov/ddc and The asking rent was $140 per square Pfizer Inc. (Manhattan)/ $130.4 Verastem Inc. SB M&A Public Access to Court Electronic Records. require a $35 deposit. For more foot. Pfizer Inc., VS-6063 Listings are in alphabetical order. information, contact Ben Perrone at Selected deals announced for the week ended July 14 involving companies in metro New York. ● (718) 391-2614. Yerman & Associates signed a lease GCI: Growth capital investment represents new money invested in a company for a minority ● Alvona for 15,000 square feet at 225 Broadway. stake. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing 100 Maiden Lane, Manhattan ● Department of Environmental Protection The law firm will be relocating from its shares of a company without the participation of a financial buyer. source: capitaliq Filed for Chapter 11 bankruptcy Requests proposals by 4 p.m on Aug. 24 current space at 401 Broadway.The

July 23, 2012 | Crain’s New York Business | 19 nb30p20-22cl.qxp 7/20/2012 12:54 PM Page 20

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM EVENTS REAL ESTATE PUBLIC & LEGAL NOTICES ACG NYC -Long Island Clambake, Cocktails Notice of Qualification of Alpha DD Notice of Qualification of Vital Support NOTICE OF FORMATION OF and Volleyball Summer Networking Event COMMERCIAL LLC. App for Authority filed with Systems, L.L.C. Authority filed with Investment Business Advisors, LLC. Come and enjoy an evening of networking on Secy of State of NY (SSNY) on NY Dept. of State on 6/11/12. Office Authority filed w/ Secy of State of NY Hudson Valley of NYS 6/11/12. Office location: NY County. location: NY County. LLC formed in (SSNY) on 4/6/12. Office Location: the beach with your peers! A volleyball 1)Silicon Alley North, 100K SF Data Center M. North Train Tournament will begin at 7:00 pm. Teams will 2)Mill Building Conversion, Flats, Retail, Townhomes LLC formed in DE on 6/5/12. SSNY IA on 4/18/01. NY Sec. of State NY Co. LLC formed in D.C on 3)Hudson River Front, Residential, Industrial, Recreation designated agent upon whom designated agent of LLC upon whom 3/21/11. SSNY designated agent be created on-site. Casual Dress Attire is 4)Pawling, NY 50K SF/2.7 Acres Showroom, Warehouse REQUIRED! Food and beverage will be served 5)Cold Spring, NY / Restaurant / Bistro / Office process may be served and shall process against it may be served and upon whom process may be served 6)Metro North Train Stop Live/Work Artist/Service mail copy of process against LLC to shall mail process to: c/o CT and shall mail copy of process all evening. When: Wednesday, July 25, 2012 7)Investment Properties, off market deals 5:30 p.m. - 8:30 p.m. Where: The Crescent 8)Development Sites, Apts, Retail, Office, Flex business address: P.O. Box 4668, Corporation System, 111 8th Ave., NY, against LLC to principal business Beach Club, 333 Bayville Avenue, Bayville, NY [email protected] #90536, NY, NY 10163. DE address NY 10011, regd. agent upon whom address: Paul A. Ehrhardt, 3552 11709. General Price : $125 Member Price : www.crproperties.com 845 485-3100 of LLC: 1675 So State St., Ste B, process may be served. IA and Reservoir Rd, NW, Washington DC $95 Register at www.acgnyc.org Dover, DE 19901. Cert of LLC filed principal business addr.: 11191 20007. Arts of Org of LLC filed w/ with Secy of State of DE located: Aurora Ave., Urbandale, IA 50322. Patricia E. Grays, Superintendent of ACG New York Summer Networking TELECOMMUNICATIONS P.O. Box 898, Dover, DE 19901. Cert. of Org. filed with IA Sec. of State, Corps located: Dept of Consumer Event At American Yacht Club Purpose: any lawful activity. 321 E. 12th St., Des Moines, IA and Regulatory Affairs, Corps Please join us for a summer evening event at NYC'S MOTOROLA 50319. Purpose: all lawful purposes. Division, PO Box 92300, Washington the scenic setting of American Yacht Club Notice of Registration of Richard Cook DC 20090. 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SSNY designated Stuyvesant Avenue, Rye , NY 10580. General Avenue of the Americas, 8th Floor, 200 West 16th St, 5K, NY, NY 10011. agent upon whom process may be Price : $150 Member Price : $100. Register at New York, NY 10011. Profession to Purpose: Any Lawful Purpose. served and shall mail copy of www.acgnyc.org be practiced by LLC: Law. process against LLC to principal Notice of Qualification of Jamaica business address: 16090 Swingley ACG NYC Women of NY, NJ & CT Notice of Formation of 70045 Holdings Asset Management LLC. Authority Ridge Rd, Ste 400, Chesterfield, MO Set sail with the women of ACG NY, ACG CT LLC. Arts. of Org. filed with NY Dept. filed with NY Dept. of State on 63017. Cert of LLC filed with Secy of and ACG NJ for a networking night to of State on 3/28/12. Office location: 6/28/12. Office location: NY County. State of MO located: 600 West Main remember! Please join us to enjoy cocktails NY County. Sec. of State designated LLC formed in DE on 10/4/10. NY St, Jefferson City, MO 65101. and light fare aboard the Bateaux, New York’s agent of LLC upon whom process Sec. of State designated agent of Purpose: any lawful act. ultimate all glass sunset cruise as we soak up against it may be served and shall mail LLC upon whom process against it spectacular city views from the Hudson River. process to the principal business addr.: may be served and shall mail Name of LLC: San Holdings LLC. Arts. We’re looking forward to a fantastic network- c/o The Community Preservation Corp., process to: c/o CT Corporation of Org. filed with NY Dept. of State: ing opportunity for all. Don’t miss the boat! 33 East 33rd Street 28 E. 28th St., 9th Fl., NY, NY 10016. System, 111 8th Ave., NY, NY 10011, 2/21/12. Office loc.: NY Co. Sec. of When: Monday, July 30, 2012 6:30 p.m. - 9:00 New York, NY 10016 Purpose: any lawful activity. regd. agent upon whom process may State designated agent of LLC upon p.m. Where: Bateaux at Chelsea Piers, Pier 61, 212-532-7400 be served. DE addr. of LLC: 1209 whom process against it may be West 23rd Street, New York, NY 10011. www.metrocomradio.com TIGHT CONTRACTING, LLC, a Orange St., Wilmington, DE 19801. served and shall mail process to: c/o General Price : $140 Member Price : $95 domestic LLC. Arts. of Org. filed with Cert. of Form. filed with DE Sec. of Business Filings Inc., 187 Wolf Rd., Register at www.acgnyc.org the SSNY on 06/21/2012. Office State, 401 Federal St., Dover, DE Ste. 101, Albany, NY 12205, regd. agt. location: NY County. SSNY has been 19901. Purpose: all lawful purposes. upon whom process may be served. PUBLIC & designated as agent upon whom Purpose: any lawful act. process against the LLC may be HEART-TUNE, LLC, a domestic LLC. Notice of Formation of LIGHTSEED PUBLIC HEARING served. SSNY shall mail process to: Arts. of Org. filed with the SSNY on LEGAL NOTICES CAPITAL, LLC. Arts. of Org. filed with Michael Marrone, 1221 6th Ave., NY, 04/16/2012. Office location: NY County. Secy. of State of NY (SSNY) on NOTICE IS HEREBY GIVEN, NY 10020. Purpose: Any Lawful SSNY has been designated as agent FAIR FOLKS AND A GOAT, LLC App. 04/26/12. Office location: NY County. PURSUANT TO LAW, that the NYC Purpose. upon whom process against the LLC Department of Consumer Affairs will for Auth. filed NY Sec. of State (SSNY) may be served. SSNY shall mail SSNY designated as agent of LLC 10/1/2009. LLC was organized in DE upon whom process against it may be hold a Public Hearing on Wednesday, NOTICE OF FORMATION OF Epoc process to: 1755 York Ave 7A, NY, NY on 9/1/2009. Office in NY County. served. SSNY shall mail process to August 1, 2012 at 2:00 p.m. at 66 Partners LLC. Arts of Org filed with 10128. Purpose: Any Lawful Purpose. SSNY is desig. as agent of LLC upon Corporation Service Co., 80 State St., John Street, 11th floor, on a petition Secy of State of NY (SSNY) on whom process may be served. SSNY Albany, NY 12207, regd. agent upon from MNY Chelsea LLC to continue 4/13/12. Office location: NY County. to mail copy of process to 7 E. 88th NOTICE OF FORMATION of whom and at which process may be to maintain and operate an SSNY designated agent upon whom St., NY, NY 10128. Required office at Pineapple Developments, LLC Art. served. Purpose: Any lawful activity. unenclosed sidewalk cafe at 112 process may be served. PO address 3500 S. DuPont Hwy., Dover, DE of Org filed Sec’y of State (SSNY) to which SSNY shall mail copy of Seventh Avenue in the Borough of 19901 Cert. of Formation filed with 6/20/12. Office location: New York Notice of Qualification of Digital Risk process against LLC: Imelda Vasquez, Manhattan for a term of two years. Jeffrey W. Bullock, Sec. of State, 401 County. SSNY designated as agent of Mortgage Services, LLC. Authority 101 N Brand Blvd, 11th Fl, Glendale, Request for copies of the proposed Federal St., #4, Dover, DE 19901. LLC upon whom process against it filed with NY Dept. of State on CA 91203. Principal business address: revocable consent agreement may Purpose: Any lawful purpose. may be served. SSNY shall mail copy 6/20/12. Office location: NY County. be addressed to: Department of 2373 Broadway, Ste 1628, NY, NY, of process to David Wrobel, Esq., LLC formed in DE on 11/13/09. NY Consumer Affairs, Attn: FOIL Officer, Notice of Formation of Richman Tax 10024. Purpose: any lawful act. Wrobel & Schatz LLP, 1040 Avenue of Sec. of State designated agent of LLC 42 Broadway, New York, NY 10004. Credit Advisors LLC. Arts. of Org. the Americas, 11th Floor, New York, NY upon whom process against it may be filed with NY Dept. of State on 5/7/12. NOTICE OF FORMATION OF Kenyon 10018. Purpose: any lawful activities. served and shall mail process to the Office location: NY County. Princ. bus. Capital Investment Holdings, LLC. Arts principal business addr.: 2301 PUBLIC & addr.: 1010 Ave. of the Americas, of Org filed with Secy of State of NY Notice of Qualification of ARC Maitland Center Pkwy., Ste. 165, Ste. 301, NY, NY 10018. Sec. of (SSNY) on 3/26/12. Office location: NY NYW42ST002, LLC. Authority filed Maitland, FL 32751. DE addr. of LLC: LEGAL NOTICES State designated agent of LLC upon County. SSNY designated as agent with Secy. of State of NY (SSNY) on 615 S. DuPont Hwy., Dover, DE whom process against it may be upon whom process may be served 06/19/12. Office location: NY County. 19901. Cert. of Form. filed with DE Sec. served and shall mail process to: c/o and shall mail copy of process LLC formed in Delaware (DE) on of State, 401 Federal St., Dover, DE Notice of Qualification of Zoomdojo CT Corporation System, 111 8th against LLC to principal business 02/27/12. Princ. office of LLC: 106 19901. Purpose: all lawful purposes. LLC. Authority filed with Secy. of State Ave., NY, NY 10011, regd. agent address: 142 Duane St; Unit 4B; NY, York Rd., Jenkintown, PA 19046. of NY (SSNY) on 07/13/12. Office upon whom process may be served. NY 10013. Purpose: any lawful act. SSNY designated as agent of LLC Notice of Formation of ASTOR location: NY County. LLC formed in Purpose: any lawful activity. upon whom process against it may be PROPERTY HOLDINGS LLC. Arts. of Delaware (DE) on 07/09/12. Princ. NOTICE OF FORMATION OF W S B served. SSNY shall mail process to Org. filed with Secy. of State of NY office of LLC: 40 E. 78th St., 5C, NY, NOTICE OF FORMATION OF CHZ MANHATTAN LLC. Arts of Org filed c/o CSC, 80 State St., 6th Fl., Albany, (SSNY) on 05/31/12. Office location: NY 10075. SSNY designated as agent Partners, LLC. Arts of Org filed with with Secy of State of NY (SSNY) on NY 12207. DE addr. of LLC: 2711 NY County. Princ. office of LLC: 575 of LLC upon whom process against Secy of State of NY (SSNY) on 4/4/12. 5/8/12. Office location: NY County. Centerville Rd., Ste. 400, Wilmington, Madison Ave., Ste. 7B, NY, NY 10022. it may be served. SSNY shall mail Office location: NY County. SSNY SSNY designated as agent upon whom DE 19808. Arts. of Org. filed with DE SSNY designated as agent of LLC process to the LLC at the princ. office designated as agent upon whom process may be served and shall mail Secy. of State, Div. of Corps., 401 upon whom process against it may of the LLC. DE addr. of LLC: process may be served. PO address copy of process against LLC to prin- Federal St., Ste. 4, Dover, DE 19901. be served. SSNY shall mail process Corporation Service Co., 2711 to which SSNY shall mail copy of cipal business address: THE LLC 15 Purpose: Any lawful activity. to Kozusko Harris Duncan at the Centerville Rd., Ste. 400, Wilmington, process against LLC: c/o US Corp DIVISION ST 6th FL NY, NY 10002. princ. office of the LLC. Purpose: New Castle Cnty., DE 19808. Arts. of Agents, Inc., 7014 13th Ave, Ste 202, Notice of Qualification of J.P. MORGAN Any lawful activity. Org. filed with Secy. of State of DE, Bklyn, NY 11228. Principal business Notice of Qualification of Teays River GLOBAL ACCESS PRIVATE Div. of Corps., John G. Townsend Bldg., address: 792 Columbus Ave, Apt 17-O, Investments Management, LLC. INVESTMENTS VINTAGE 2012, LLC. Notice of Qualification of IX 1372 401 Federal St. - Ste. 4, Dover, DE NY, NY 10025. Purpose: any lawful act. Authority filed with Secy. of State of NY Authority filed with Secy. of State of NY Holdings, L.P. Authority filed with NY 19901. Purpose: Any lawful activity. (SSNY) on 6/27/12. Office location: (SSNY) on 06/05/12. Office location: Dept. of State on 5/29/12. Office Notice of Qualification of Purpose NY County. LLC formed in Delaware NY County. LLC formed in Delaware location: NY County. Princ. bus. addr.: NOTICE OF FORMATION OF ZWILLGEN Global, LLC App. for Auth. filed Sec’y (DE) on 10/15/07. SSNY designated (DE) on 02/29/12. Princ. office of LLC: 591 W. Putnam Ave., Greenwich, CT PLLC. Authority filed w/ Sec’y of of State (SSNY) on 7/17/12. Office as agent of LLC upon whom process c/o Proskauer Rose LLP, Eleven Times 06830. LP formed in DE on 3/26/12. State of NY (SSNY) on 6/5/12. Office location: New York County. LLC org. against it may be served. SSNY Sq., NY, NY 10036-8299. SSNY NY Sec. of State designated agent of Location: NY Co. PLLC formed in in DE 9/29/11. SSNY designated as shall mail process to: c/o National designated as agent of LLC upon LP upon whom process against it Washington, DC on 7/1/11. SSNY agent of LLC upon whom process Registered Agents, Inc., 111 Eighth whom process against it may be may be served and shall mail process designated agent upon whom process against it may be served. SSNY shall Ave., 13th Fl., NY, NY 10011. Principal served. SSNY shall mail process to to: c/o CT Corporation System, 111 may be served and shall mail copy of mail copy of process to 224 Centre St, office address: 111 Congressional Corporation Service Co., 80 State St., 8th Ave., NY, NY 10011, regd. agent process against PLLC to prncpl bus. 6th Fl., New York, NY 10013. Office Blvd., Ste. 115, Carmel, IN 46032. Albany, NY 12207-2543. DE addr. of upon whom process may be served. address: 1705 N St. NW, Washington, address in DE – Incorporating Address to be maintained in DE: 160 LLC: 2711 Centerville Rd., Ste. 400, DE addr. of LP: 1209 Orange St., DC 20036. Arts of Org filed w/ Patricia Services, Ltd. 3500 S. Dupont Hwy, Greentree Dr., Ste. 101, Dover, DE Wilmington, DE 19808. Arts. of Org. Wilmington, DE 19801. Name/addr. E. Grays, Superintendent of Corps, Dover, DE 19901. Cert. of Form. on 19904. Arts of Org. filed with the DE filed with Secy. of the State of DE, of genl. ptr. available from NY Sec. of Dept of Consumer & Regulatory file: SSDE, Div. of Corps, PO Box Secretary of State, 401 Federal St., Corp. Dept., Loockerman & Federal State. Cert. of LP filed with DE Sec. Affairs, PO Box 92300, Washington, 898, Dover, DE 19903. Purpose: any Ste. 4, Dover, DE 19901. Purpose: Sts., Dover, DE 19901. Purpose: Any of State, 401 Federal St., Dover, DE DC 20090. Purpose: Any lawful act. lawful activities. any lawful activities. lawful activity. 19901. Purpose: all lawful purposes.

20 | Crain’s New York Business | July 23, 2012 nb30p20-22cl.qxp 7/20/2012 1:33 PM Page 21

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM PUBLIC & LEGAL NOTICES Notice of Qualification of Digital Risk Notice of Application for Authority of Notice of Qualification of iVillage Notice of Qualification of DVCI CDE V, Notice of Qualification of IX 1372 Valuation Services, LLC. Authority filed MRS. BELEM TRADING, LLC filed Publishing LLC. Authority filed with LLC. App. for Auth. filed with Secy. of Mezz GP, L.L.C. Authority filed with with NY Dept. of State on 5/21/12. with the Secy. of State of NY (SSNY) NY Dept. of State on 6/11/12. Office State of NY (SSNY) on 6/1/12. Office NY Dept. of State on 6/1/12. Office Office location: NY County. LLC on 5/8/12. The LLC was formed in NJ location: NY County. Princ. bus. location: NY County. LLC formed in location: NY County. Princ. bus. addr.: formed in DE on 4/27/12. NY Sec. of on 2/17/12. Office loc.: New York addr.: 30 Rockefeller Plaza, NY, NY Delaware (DE) on 3/16/11. SSNY 591 W. Putnam Ave., Greenwich, CT State designated agent of LLC upon County. The SSNY is designated as 10112. LLC formed in DE on designated as agent of LLC upon 06830. LLC formed in DE on 5/23/12. whom process against it may be agent of LLC upon whom process 5/15/00. NY Sec. of State designated whom process against it may be NY Sec. of State designated agent of served and shall mail process to the against it may be served. The principal agent of LLC upon whom process served. SSNY shall mail process to: LLC upon whom process against it principal business addr.: 2301 business loc. and the address SSNY against it may be served and shall c/o Corporation Service Company, may be served and shall mail process Maitland Center Pkwy., Ste. 165, shall mail copy of process to is 75 mail process to: c/o CT Corporation 80 State St., Albany, NY 12207. DE to: c/o CT Corporation System, 111 Maitland, FL 32751. DE addr. of LLC: Varick St., 3rd Fl., New York, NY System, 111 8th Ave., NY, NY 10011, address of LLC: 2711 Centerville Rd., 8th Ave., NY, NY 10011, regd. agent 615 S. DuPont Hwy., Dover, DE 19901. 10013. The required office address regd. agent upon whom process may Ste. 400, Wilmington, DE 19808. Arts. upon whom process may be served. Cert. of Form. filed with DE Sec. of in NJ is 1255 River Rd., Edgewater, be served. DE addr. of LLC: c/o The of Org. filed with DE Secy. of State, DE addr. of LLC: 1209 Orange St., State, 401 Federal St., Dover, DE NJ 07020. Cert. of formation filed Corporation Trust Co., 1209 Orange 401 Federal St., Ste. 4, Dover, DE Wilmington, DE 19801. Cert. of 19901. Purpose: all lawful purposes. with Andrew P. Sidamon-Eristoff, St., Wilmington, DE 19801. Cert. of 19901. Purpose: any lawful activity. Form. filed with DE Sec. of State, State Treas., 33 W. State St., Form. filed with DE Sec. of State, 401 Federal St., Dover, DE 19901. CROWN GROUP HOSPITALITY, LLC Trenton, NJ 08608. 401 Federal St., Dover, DE 19901. Notice of Formation of NYLex, LLC. Purpose: all lawful purposes. a domestic LLC, Arts. of Org. filed Purpose: all lawful purposes. Arts. of Org. filed with Secy. of State with the SSNY on 1/25/11. Office Theotopo, LLC. Arts. of Org. filed with of NY (SSNY) on 06/25/12. Office NOTICE OF FORMATION OF LIMITED location: New York County. SSNY is Secy. of State of NY (SSNY) on 6/5/12. Notice of Formation of Heather Brand location: NY County. SSNY designated LIABILITY COMPANY. NAME: designated as agent upon whom Office in NY County. SSNY designated Fourth LLC. Arts. of Org. filed with as agent of LLC upon whom process DENTAVERSE, LLC. Articles of process against the LLC may be agent of LLC upon whom process Secy. of State of NY (SSNY) on against it may be served. SSNY shall Organization were filed with the served. SSNY shall mail process to: against it may be served. SSNY shall 12/16/03. Office location: NY County. mail process to c/o Timothy C. Lynch, Secretary of State of NY (SSNY) on Lion Restaurant Group, LLC, 54 W. mail process to 54 Thompson St. 4th SSNY designated as agent of LLC Offit Kurman, P.A., 300 E. Lombard 5/15/12. Office location: New York 21st St., Ste. 904-905, NY, NY Fl, NY, NY 10012. Purpose: General. upon whom process against it may St., Ste. 2010, Baltimore, MD 21202. County. SSNY has been designated 10010. General Purposes. be served. SSNY shall mail process Purpose: Any lawful activity. as agent of the LLC upon whom NOTICE OF FORMATION OF THE to: The LLC, 209 E. 14th St., NY, NY process against it may be served. TRELLIS LLC, a domestic LLC. Arts. PROCTER GROUP LLC. Arts of Org 10003. Purpose: any lawful activity. Notice of Formation of Limited Liability SSNY shall mail a copy of process to of Org. filed with the SSNY on filed with Secy of State of NY (SSNY) Company (LLC) Name: APPLE SEEDS the LLC, c/o Siegelvision, 9 East 04/30/2012. Office location: NY on 5/29/12. Office location: BRONX. 224 EAST 74TH LLC, a foreign LLC, INTERNATIONAL LLC. Articles of 40th Street, 17th Floor, New York, County. SSNY has been designated SSNY designated as agent upon filed with the SSNY on 6/18/98. Organization filed by the Department New York 10016. Purpose: For any as agent upon whom process whom process may be served and Office location: New York County. of State of New York on: 05/15/2012. lawful purpose. against the LLC may be served. shall mail copy of process against LLC SSNY is designated as agent upon Office location: County of New York. SSNY shall mail process to: C/O to principal business address: 780 whom process against the LLC Purpose: any and all lawful activities. Notice of formation of Evergreene Business Filings, Incorporated, 187 Saint Anns Avenue, Apt. 6G, Bronx, may be served. SSNY shall mail Secretary of State of New York Music LLC. Arts of Org filed with Wolf Rd, Ste 101, Albany, NY 12205. NY 10456. Purpose: any lawful act. process to: c/o Delta Realty, 805 (SSNY) designated as agent of LLC Secy of State of NY (SSNY) on upon whom process against it may 5/11/12. Office location: NY County. Purpose: Any Lawful Purpose. Notice of formation of VERTIGROW Third Ave, Ste 1100, NY, NY 10022. be served. SSNY shall mail a copy SSNY designated as agent upon LLC. Arts. of Organization filed with General Purposes. Notice of Formation of MERMAID of process to: 10 West 25th Street, whom process against the LLC may Secy of State of NY (SSNY) on PLAZA HOLDINGS LLC. Arts. of Org. NOTICE OF FORMATION OF JEBS New York, NY 10010. be served. SSNY shall mail process 5/1/12. Office location: NY County. filed with Secy. of State of NY (SSNY) GROUP, LLC. Arts of Org filed with to 450 W 31st St, NY, NY 10001. SSNY designated as agent upon on 5/18/12. Office location: NY County. Secy of State of NY (SSNY) on Notice of Formation of ROSE CAPITAL General purposes. whom process may be served and SSNY designated as agent of LLC 5/21/12. Office location: NY County. 104TH STREET LLC. Arts. of Org. shall mail copy of process against upon whom process against it may be SSNY designated as agent upon filed with Secy. of State of NY (SSNY) MELWANI & CHAN LLP a domestic LLC to principal business address: served. SSNY shall mail process to: whom process may be served and on 5/9/12. Office location: NY County. LLP, filed with the SSNY on 2/17/12. 106 Cabrini Blvd. 6E NY, NY 10033. The Company, c/o Martin Domansky, shall mail copy of any process against SSNY designated as agent of LLC Office Location: New York County. Purpose: any lawful act. 19 West 34th St., NY, NY 10001. LLC to principal business address: upon whom process against it may SSNY is designated as agent upon Purpose: any lawful activities. Notice of Formation of 28-30 Avenue A, 370 W 52ND STREET, NEW YORK, be served. SSNY shall mail process whom process against the LLP may LLC. Arts. of Org. filed with NY Dept. NY 10019. Purpose: any lawful act. to: 551 Fifth Ave., 23rd Fl., NY, NY be served. SSNY shall mail process NOTICE OF FORMATION OF Blasius of State on 05/14/12. Office location: 10176. Purpose: any lawful activity. to: The LLP, 55 West End Ave., Ste. Media & Marketing, LLC. Arts of Org NY County. Principal business BLNY LLC, a foreign LLC, filed with 9H, NY, NY 10023. Purpose: Law filed with Secy of State of NY (SSNY) address: c/o Singh Equities, LLC, 22 the SSNY on 3/9/12. Office location: Notice of Formation of Georgia on 4/23/12. Office location: NY W. 27th St., NY, NY 10001. Secy. of New York County. SSNY is designated Greene LLC. Arts of Org filed with NOTICE OF FORMATION OF DANGER County. SSNY designated as agent State designated as agent of LLC as agent upon whom process against Secy of State of NY (SSNY)on TV, LLC. Articles of Organization upon whom process may be served upon whom process against it may the LLC may be served. SSNY shall 2/27/12. Office location: NY County. were filed with the New York and shall mail copy of process be served. Secy. of State shall mail mail process to: The LLC, 1216 SSNY designated as agent upon Secretary of State (SSNY) on April against LLC to principal business process to c/o Singh Equities, LLC, Lexington Ave., NY, NY 10028. whom process may be served and 24, 2012. Office Location: NY County. address: 133 W Broadway, Ste 3, NY, 22 W. 27th St., NY, NY 10001. General Purposes. shall mail copy of process against SSNY has been designated as an NY 10013. Purpose: any lawful act. Purpose: Any lawful activity. LLC to principal business address: agent upon whom process may be Notice of Qualification of 11 East 435 Convent Ave, NY, NY 10031. served and shall mail a copy of any Notice of Qualification of VENUS Notice of Qualification of DuPont 68th Street Property Manager LLC. Purpose any lawful act. process to the principal business PARTNERS, LLC. Authority filed Performance Coatings, LLC. Authority Authority filed with NY Dept. of State address: 10 East 92nd Street, New with Secy. of State of NY (SSNY) on filed with NY Dept. of State on on 2/9/12. Office location: NY County. Notice of Qual. of 4 NYP Ventures LLC. York, New York 10128. Purpose: 06/13/12. Office location: NY County. 5/29/12. Office location: NY County. Princ. bus. addr.: 600 Madison Ave., filed with Sec of State NY (SSNY): Any lawful activity. LLC formed in Delaware (DE) on LLC formed in DE on 4/17/12. NY 17th Fl., NY, NY 10022. LLC formed 5/10/12. Office in NY County. Formed 06/11/12. SSNY designated as agent Sec. of State designated agent of in DE on 12/22/11. NY Sec. of State in DE: 4/12/12. SSNY designated Notice of Formation of BVM TRIBECA of LLC upon whom process against it LLC upon whom process against it designated agent of LLC upon whom agent of LLC upon whom process LLC. Arts. of Org. filed with Secy. of may be served. SSNY shall mail may be served and shall mail process process against it may be served against it may be served & shall mail State of NY (SSNY) on 06/08/12. process to Attn: Michael Yohai, 30 to: c/o CT Corporation System, 111 and shall mail process to: c/o CT process to: c/o Edge Funds Office location: NY County. SSNY Thixton Dr., Hewlett Harbor, NY 11557. 8th Ave., NY, NY 10011, regd. agent Corporation System, 111 8th Ave., NY, Management LLC, 5301 Wisconsin designated as agent of LLC upon DE addr. of LLC: c/o Corporation upon whom process may be served. NY 10011, regd. agent upon whom Ave. N.W. Ste 740, Washington, D.C. whom process against it may be Service Co., 2711 Centerville Rd., Ste. DE and principal business addr.: 1007 process may be served. DE addr. of 20015. Foreign add: 160 Greentree served. SSNY shall mail process to 400, Wilmington, DE 19808. Arts. of Org. Market St., D-13039, Wilmington, DE LLC: 1209 Orange St., Wilmington, DE Dr. Ste 101, Dover, DE 19904. Arts. Pavia & Harcourt LLP, Attn: Giovanni filed with Secy. of State of DE, 401 19898. Cert. of Form. filed with DE Sec. 19801. Cert. of Form. filed with DE of Org. filed with Sec. of State Of DE, Spinelli, Esq., 590 Madison Ave., Federal St., Ste. 4, Dover, DE 19901. of State, 401 Federal St., Dover, DE Sec. of State, P.O. Box 898, Dover, DE 401 Federal St., Dover, DE 19901. 8th Fl., NY, NY 10022. Purpose: Any Purpose: Any lawful activity. 19901. Purpose: all lawful purposes. 19903. Purpose: all lawful purposes. Purpose: General. lawful activity. LANDAU ABRAMS LLC, a domestic LLC. Arts. of Org. filed with the SSNY on 05/04/2012. Office location: NY County. SSNY has been designated as agent upon whom process against the LLC may be served. SSNY shall mail process to: 190 E. 72nd St Apt. 5C, NY, NY 10021. Reg Agent: Michael Abrams, 190 E. 72nd St Apt. 5c, NY, NY 10021. Purpose: Any Lawful Purpose. Issue Dates for Business Connections Notice of Qualification of Sugar and Plumm (Upper West), LLC. Authority City Facts (8/27), & Book of Lists (12/24) filed with NY Dept. of State on 5/8/12. Office location: NY County. LLC formed in DE on 12/2/10. NY Sec. of State designated agent of LLC upon whom process against it may be served and shall mail process to the principal business addr.: 146 Redneck Ave., Moonachie, NJ 07074. DE addr. of LLC: 615 S. DuPont Hwy., Dover, DE 19901. Cert. of Form. filed with DE Sec. of State, Townsend Bldg., Dover, DE 19901. Purpose: all lawful purposes.

July 23, 2012 | Crain’s New York Business | 21 20120723-NEWS--0022-NAT-CCI-CN_-- 7/20/2012 6:35 PM Page 1

at great costs, because they can’t get between new out-of-state patients help elsewhere.The clinic advertis- and Jamaica’s relatively high rate of Abortion clinics treat non-NYers es on the Internet, including a teen pregnancy, the center’s abortion YouTube video with a tour of the fa- business will pick up by about 20%. Continued from Page 1 abortions nationally. state-downstate divide that may cility and an enthusiastic talk by Federal health reform may affect he arranged for her to get rides up Regardless,the New York metro also reflect the polarizing nature of Ms. Hoffman. clinics, too. Though the new law here with other drivers he knew.” area remains a leading center for the issue. The drop in New York neither prohibits nor requires insur- The politics of abortion has in- women’s reproductive health. Doc- abortion providers, to 249 in 2008, Anti-choice ‘onslaught’ ance to cover abortions,the influx of creasingly translated to policy tors in the state performed about left 24 of the state’s 62 counties—in A proposed $3.2 million, 8,000- out-of-state women could rise if changes that have driven more 12.8% of the 1.2 million abortions upstate rural areas totaling 7% of the square-foot ambulatory surgery more states refuse to use public women to New York, a safe haven done in the U.S. in 2008, the latest population—without an abortion center, to be called the Downtown funds to pay for abortions for since becoming one of the first states date for which statistics were avail- provider. Nationally, 92% of coun- Brooklyn Gynecology Center, ex- women insured through Medicaid, to legalize abortion, in 1970. Re- able. New York doctors performed ties do not have a provider,the num- pects to make a net profit of the health program for the poor. cently, the number of out-of-state 153,110 procedures, the ber of which peaked at $900,000 in its first year, according While New York taxpayers cover women getting abortions in New second highest after 2,908 in 1982. to documents filed with the state the procedure, many other states’ York state has spiked 26%, accord- California. UPSTATE “With high malprac- Department of Health. Medicaid programs do not.Accord- 24COUNTIES, out of ing to the latest figures available The abortion rate in the state’s 62, do tice rates, lack of commu- Seven of every 10 surgical proce- ing to a tally from LifeNews.com,an from Manhattan’s Guttmacher In- New York, as of 2007, was not have an nity support, the pariah dures performed there will be abor- anti-abortion website, more than a stitute. In 2007, 4,600 women came 35.4 annually per 1,000 abortion provider. status of many [abortion] tions—an estimated 3,300 in its first dozen states, including Florida, to New York for an abortion, up women of childbearing Nationwide, 92% docs in other areas of the year and 3,500 in its second year.Al- have taken that position. of counties do not from 3,650 in 2005. And providers age, the highest of any have a doctor country and now even most half its revenue will come from Pro-choice advocates worry that, say that trend appears to be on the state in the nation. Only who can perform death threats and killings, Medicaid, which reimburses from as part of the backlash against “Oba- rise since then. tiny Delaware (where the procedure. it is not a field of dreams,” $250 to $700 for the procedure. macare,”states will also prohibit pri- Pennsylvania women of- said Merle Hoffman,who Some clinics,including Choices, vate insurers from covering the pro- Dwindling docs ten turn) came close, with founded Choices in 1971. are diversifying into prenatal care cedure in policies sold to women The 26% uptick came as the a rate of 32.9 abortions per 1,000 “Many providers are aging out, and and other women’s health services. through soon-to-be-created health number of abortions performed in women of childbearing age. The very few are entering the field.” “We’ve seen a 100% increase in exchanges. the state dropped to 148,990 in New York rate is far higher than the That has created an opportunity demand for prenatal services,” said “We’re working at the state level 2007, down from 155,960 in 2005. U.S. number of 19.6 abortions per for some women’s health providers Ms. Hoffman. to improve access,” said Andrea Better birth control,the aging of the 1,000 women of childbearing age. looking to gain market share in That’s due in part to the facility’s Miller, president of the National population, and—at least anecdo- But even the liberal Empire State what can be a profitable business. move three months ago to a busy Abortion and Reproductive Rights tally—the wider acceptance of sin- has not been immune from the com- Choices has expanded to accom- commercial and residential area and a Action League. “We are seeing a gle motherhood have all been cred- plex politics of abortion. Shifting modate the increase in patients brand-new office suite on Jamaica huge onslaught of anti-choice legis- ited with a drop in the number of populations have resulted in an upcoming from long distances, often Avenue. Ms. Hoffman expects that lation.” Ⅲ

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM PUBLIC & LEGAL NOTICES Notice of Formation of SWISS SPOON Notice of Formation of Richman 38th NOTICE OF QUALIFICATION of Notice of Qualification of KTR LP III Notice of Formation of SinglePoint LLC; Articles of Organization filed Street Division LLC. Arts. of Org. Herakles Capital Trend Fund LLC. LLC. Authority filed with NY Dept. of IPA LLC. Arts. of Org. filed with Secy. with Secretary of State of New York filed with NY Dept. of State on App for Authority filed with Secy of State on 5/23/12. Office location: NY of State of NY (SSNY) on 06/11/12. (SSNY) on 04/20/2012. Office location: 6/4/12. Office location: NY County. State of NY (SSNY) on 5/29/12. County. LLC formed in DE on Office location: NY County. Princ. NY County. SSNY has been designated Princ. bus. addr.: 340 Pemberwick Office location: NY County. LLC 5/15/12. NY Sec. of State designated office of LLC: 315 Hudson St., NY, NY as an agent upon whom process Rd., Greenwich, CT 06831. Sec. of formed in DE on 5/21/12. SSNY agent of LLC upon whom process 10013. SSNY designated as agent against the LLC may be served. The State designated agent of LLC upon designated as an agent upon whom against it may be served and shall of LLC upon whom process against address to which SSNY shall mail a whom process against it may be process may be served. PO address mail process to: c/o CT Corporation it may be served. SSNY shall mail copy of any process against the LLC served and shall mail process to: c/o to which SSNY shall mail copy of System, 111 8th Ave., NY, NY 10011, process to the LLC at the addr. of its is to: US Corporation Agents, Inc. CT Corporation System, 111 8th process against LLC: Barton LLP, regd. agent upon whom process may princ. office. Purpose: To arrange for 7014, 13th Ave, Suite 202, Brklyn, Ave., NY, NY 10011, regd. agent 420 Lexington Ave, 18th Fl. NY, NY be served. DE addr. of LLC: 1209 the provision of health care services NY, NY 11228. Principal business upon whom process may be served. 10170. Principal business address: Orange St., Wilmington, DE 19801. by licensed health care professionals address: Fl 20, 45 Rockefeller Plaza, Purpose: any lawful activity. 277 Park Ave, 40th Fl. NY, NY 10172. Cert. of Form. filed with DE Sec. of and entities under contracts with NY 10111. Purpose: To engage in Cert of LLC filed with Secy of State State, 401 Federal St., Dover, DE managed care organizations and to any lawful act or activity. Notice of Formation of GRETTIR of DE located: PO Box 898, Dover, 19901. Purpose: all lawful purposes. conduct all other acts that may be MANAGEMENT, LLC. Arts. of Org. DE 19903. Purpose: any lawful act. done by a company under Section Notice of Formation of JENED filed with Secy. of State of NY Notice of Formation of ACP DSK, 202 of the New York Limited Liability PRODUCTIONS LLC. Arts. of Org. (SSNY) on 07/02/12. Office Location: DIGITAL MEDIA PARTNERS LLC, a LLC. Arts. of Org. filed with Secy. of Company Law. filed with Secy. of State of NY New York County. SSNY designated domestic LLC. Arts. of Org. filed with State of NY (SSNY) on 06/27/12. (SSNY) on 5/10/12. Office location: as agent of LLC upon whom the SSNY on 06/27/2012. Office Office location: NY County. Princ. T & L MANAGEMENT, LLC, a domestic NY County. SSNY designated as process against it may be served. location: NY County. SSNY has been office of LLC: 70 Little West St., Apt. LLC. Arts. of Org. filed with the SSNY agent of LLC upon whom process SSNY shall mail process to: c/o designated as agent upon whom 24D, NY, NY 10280. SSNY designated on 06/08/2012. Office location: NY against it may be served. SSNY Michael Jenkins, Apartment 41 G, 10 process against the LLC may be as agent of LLC upon whom County. SSNY has been designated shall mail process to: The LLC, 312 Liberty Street, New York, NY 10005. served. SSNY shall mail process to: process against it may be served. as agent upon whom process W. 23rd St., #4U, NY, NY 10011. Purpose: Any lawful purposes. 708 Third Ave 14th Fl, NY, NY 10017. SSNY shall mail process to the LLC against the LLC may be served. Purpose: any lawful activity. Purpose: Any Lawful Purpose. at the addr. of its princ. office. SSNY shall mail process to: 55-59 NOTICE IS HEREBY given that a Purpose: Any lawful activity. Chrystie St. Ste 407, NY, NY 10002. Notice of Formation of 225 LAFAYETTE license, number 1264237, for beer MINERVA 25 LLC, a domestic LLC, Purpose: Any Lawful Purpose. STREET, LLC. Arts. of Org. filed with and wine has been applied for by the Arts. of Org. filed with the SSNY on Notice of formation of Fiona Tyson, Secy. of State of NY (SSNY) on undersigned to sell beer and wine at 11/22/11. Office location: New York Professional Makeup Artist LLC Arts. Notice of Formation of FEEL YOUR 5/17/12. Office location: NY County. retail in a restaurant/cafe under the County. SSNY is designated as of Org. filed with the Sect’y of State BEST LLC. Arts. of Org. filed with SSNY designated as agent of LLC Alcoholic Beverage Control Law at 211 agent upon whom process against of NY (SSNY) on 5/17/2012. Office Secy. of State of NY (SSNY) on upon whom process against it may East 4th Street, New York, NY 10009, the LLC may be served. SSNY shall location, County of New York. 7/6/12. Office location: NY County. be served. SSNY shall mail process in the City of New York, County of New mail process to: Richard K. Eng, SSNY has been designated as agent SSNY designated as agent of LLC to: c/o Ursula Bevan, 225 Lafayette York, for on premises consumption. Esq., 100 Lafayette St., Ste. 403, NY, of the LLC upon whom process upon whom process against it may St., #12A, NY, NY 10112. Purpose: Julie Johnson/Jujomukti, Inc. d/b/a NY 10013. General Purposes. against it may be served. SSNY shall be served. SSNY shall mail process any lawful purpose. Jujomukti Tea Lounge mail process to: The LLC, 445 to: 210 E. 65th St., NY, NY 10065. Notice of Qualification of iVillage Lafayette St #11A, NY NY 10003. Purpose: any lawful activity. Notice of Qualification of Telemundo Notice of Qualification of Warburg Parenting Network LLC. Authority Purpose: any lawful act. Group LLC. Authority filed with NY Pincus Private Equity (E&P) XI-A, L.P. filed with NY Dept. of State on NOTICE OF FORMATION of RAIN Dept. of State on 6/11/12. Office Authority filed with NY Dept. of State 6/11/12. Office location: NY County. Notice of Qualification of MEHETIA Commercial Real Estate Advisors location: NY County. Princ. bus. on 5/8/12. Office location: NY County. Princ. bus. addr.: 30 Rockefeller SUB 1 LLC. Authority filed with Secy. LLC. Article of Organization filed with addr.: 2290 W. 8th Ave., Hialeah, FL LP formed in DE on 5/3/12. NY Sec. Plaza, NY, NY 10112. LLC formed in of State of NY (SSNY) on 06/21/12. the Secretary of State of NY (SSNY) 33010. LLC formed in DE on of State designated agent of LP upon DE on 5/15/00. NY Sec. of State Office location: NY County. LLC on 06/01/2012. Office location: NY 5/28/86. NY Sec. of State designated whom process against it may be designated agent of LLC upon whom formed in Delaware (DE) on 06/19/12. County. SSNY has been designated agent of LLC upon whom process served and shall mail process to the process against it may be served Princ. office of LLC: 11 Madison Ave., as agent upon whom process against it may be served and shall principal business addr.: c/o Warburg and shall mail process to: c/o CT NY, NY 10010-3629. SSNY designated against it may be served. The Post mail process to: c/o CT Corporation Pincus LLC, 450 Lexington Ave., NY, Corporation System, 111 8th Ave., as agent of LLC upon whom process Office address to which the SSNY System, 111 8th Ave., NY, NY 10011, NY 10017, Attn: General Counsel. NY, NY 10011, regd. agent upon against it may be served. SSNY shall shall mail a copy of any process regd. agent upon whom process may DE addr. of LP: c/o The Corporation whom process may be served. DE mail process to c/o Corporation against the LLC served upon him is be served. DE addr. of LLC: c/o The Trust Co., 1209 Orange St., addr. of LLC: c/o The Corporation Service Co., 80 State St., Albany, NY C/O the LLC 60 West 23rd Street, Corporation Trust Co., 1209 Orange Wilmington, DE 19801. Name/addr. Trust Co., 1209 Orange St., 12207-2543. DE addr. of LLC: 2711 Ste. 842, NY, NY 10010. Purpose of St., Wilmington, DE 19801. Cert. of of genl. ptr. available from NY Sec. of Wilmington, DE 19801. Cert. of Centerville Rd., Wilmington, DE 19808. LLC: to engage in any lawful act or Form. filed with DE Sec. of State, State. Cert. of LP filed with DE Sec. Form. filed with DE Sec. of State, Arts. of Org. filed with Secy. of State, activity. Street address of Principal 401 Federal St., Dover, DE 19901. of State, 401 Federal St., Dover, DE 401 Federal St., Dover, DE 19901. 401 Federal St., Dover, DE 19901. Business location is: 60 West 23rd Purpose: all lawful purposes. 19901. Purpose: all lawful activity. Purpose: all lawful purposes. Purpose: Any lawful activity. Street, Ste. 842, NY, NY 10010.

22 | Crain’s New York Business | July 23, 2012 20120723-NEWS--0023-NAT-CCI-CN_-- 7/20/2012 6:21 PM Page 1

Time runs out for time-shares Doughnut craze

Continued from Page 4 tentionally overselling Continued from Page 1 open a shop on Grand Street. In up construction of Hilton’s second the occupancy capacity glazed or cruller. They sell for up to March, it doubled in size to 4,000 time-share, West 57th Street by of the 286 time-share $3.25 a pop. They come in a variety square feet. Hilton Club, with 161 units. That units by renting them of shapes and exotic flavors, such as Last year, Mr. Israel, who spent launched in 2009 and is 90% sold. throughout the year to pistachio-encrusted with lemon two years developing a special ma- Industry experts note that the general public curd or square peanut butter filled chine to fill his square doughnuts, Hilton has an edge because of its through Expedia, Ho- with banana cream. Local or organ- debuted a second location, within brand.Moreover,its time-shares are tels.com and other ic ingredients are typically touted. the Chelsea Hotel.More than 3,000 translated to points, not days, that travel websites.” Bakers like Doughnut Plant, as doughnuts are sold through the two can be used across its time-share re- “This has been going well as Dough in Brooklyn’s Bed- stores every day, and Mr. Israel is sorts around the globe. Manhattan on for a long time, and ford-Stuyvesant neighborhood, now focusing on further growth.He Club owners buy into one property, people are getting aren’t the only ones taking advan- expects to open a third Manhattan although owners can trade with ripped off,” said Steven tage of the surge in popularity. So shop in the Grand Central area other time-shares through RCI, a propertyshark.com Blau of law firm Blau too are restaurants, such as Pies ’n’ within the next year. BLOCKED EXITS: Many Manhattan Club owners are eager to time-share exchange. sell their shares in the West Side property and move on but in Brown & Leonard, Thighs in Williamsburg, Brooklyn, some cases are finding it “almost impossible” to do so. which represents the and the Brindle Room in the East Walk-in traffic Washing their hands plaintiffs. “I can get a Village, which are boosting their “I’m a baker, but I’m learning as At this point, many Manhattan room faster by using an breakfast business by piling on the a businessman,”said Mr.Israel,who Club owners simply want to wash from $1,800 to $2,500 a year, in online travel site, while owners are fried dough. employs 30 and has partnerships for their hands of the whole experience. protest of how the club is being run. paying taxes and maintenance fees “We saw we were selling out of Doughnut Plant shops in Tokyo “I am trying to get out of it, and “I refuse to pay,” said Tony during the year.” all these flavors and realized there’s and Seoul. There are now 12 of it is almost impossible,” said Zenon Caliguire, a firefighter in Albany, Two months ago,however,a fed- a hole we can fill—no pun intend- them. Hac, a teacher in New Jersey, who who attempted to sell his $20,000 eral judge dismissed the suit. Now, ed,”said Sarah Sanneh,co-owner of As a to-go item, doughnuts are paid $20,000 for his time-share in time-share online for $10,000 last with a different time-share owner as Pies ’n’ Thighs, a popular spot also also helpful in generating walk-in 2002 and wants to give back his year, but got no bidders. “My credit a client, Mr. Blau has filed a suit in known for its chicken biscuit sand- breakfast traffic for restaurants. share for $1. is at risk, but why should I pay for state court alleging “deceptive busi- wiches. “We just let our imagina- While Pies ’n’Thighs has always of- Other angry owners like Mr. Hac something I can’t use?” ness practices.” tions run wild.” fered a cinnamon sugar doughnut,it say they,too,would love giving shares “I think we have a very good The cost of making a doughnut has slowly added flavors, such as co- back to the sponsor, but they say the All too widely available chance; otherwise, I would not be is relatively low compared with oth- conut lime and almond blueberry, developer is only compiling a waiting Others are going to court. Last wasting my time,” said Mr. Blau, er sweets—and profits are high. Ex- over the two years it has been at 166 list and is not buying any shares back. year, five owners sued Mr. Eichner who has been contacted by about perts say the core ingredients— S. Fourth St. In retaliation, Mr. Hac and others and related entities, accusing them 200 Manhattan Club time-share mostly flour, water, sugar and Now patrons often wait outside have recently stopped paying their of fraud and other misconduct. owners since filing the first lawsuit. salt—are relatively cheap, and pro- the 1,000-square-foot restaurant annual maintenance fees, ranging They accused the manager of “in- “I think justice will be served.” Ⅲ duction doesn’t require a lot of before its 9 a.m.opening.About 700 heavy-duty equipment or skilled la- doughnuts, which range in price bor,leading to profits of 15% to 30% from $2 to $2.50, are sold each Analysts at brokerage Keefe per doughnut. “They’re not expen- week, a number consistently on the Bruyette & Woods last week esti- sive to make and not hard to learn rise. Banks lawyer up mated that Barclays alone could “Doughnuts might even come have to pay $4.9 billion in damages before pie in my heart,” Ms. Sanneh Continued from Page 1 about $85 million in fees by the bank to settle all the suits that are sure to ‘We realized said. dwarf the $25 billion in penalties and last year. A PwC spokesman didn’t come. Among New York-based Similarly, Jeremy Spector, who loan forgiveness that major banks return a call. banks,Keefe Bruyette analysts spec- there’s a opened the Brindle Room two years agreed to in February to settle alle- Still, most of the action is on the ulated,JPMorgan could be liable for ago, wanted to expand to mornings. gations of mass robot-signing of legal front, with at least 15 major $4.8 billion and Citi $3.1 billion. hole we Last year, he started Wonder City foreclosure documents. law firms already retained on the BofA may have to pay $4.2 billion, Coffee & Donuts as a pop-up shop Unsurprisingly,lawyers who spe- LIBOR matter by big banks. they estimated. can fill’ within Brindle’s 600-square-foot cialize in class actions are busy That said, checks won’t be cut dining room. Wonder City sells preparing lawsuits against the banks, Coming: shareholder suits any time soon. It will take at least a $1.75 doughnuts made from a pota- and swaths of support-service Davis Polk & Wardwell repre- year before all the motions and to batter, which Mr. Spector appre- providers are mobilizing to take dep- sents Bank of America,Covington & counter-motions to dismiss are ciates for its ability to stay refriger- ositions,help calculate losses and cut Burling is with Citigroup,and Simp- dealt with, one attorney involved how to make; they can be created in ated for more than 24 hours. checks to aggrieved plaintiffs. son Thacher & Bartlett is working with the shareholder cases said, and great quantities;they have every op- Although his brand is still catching “This could all hopefully help the for JPMorgan Chase, according to probably another two years before portunity to be a success,” said on, Mr. Spector hopes to move into New York economy,” quipped Jason federal court records.These firms are settlements are reached. Still, Bar- Stephen Zagor, director of culinary wholesale and eventually give Won- Zweig, an attorney at Hagens representing the banks in an antitrust clays essentially acknowledged the management at the Institute of der City its own store. Berman, a firm that has brought a case brought by the city of Baltimore U.S. government’s allegations of Culinary Education. “We’re trying to build the pres- suit against several big banks. being heard in federal court in down- wrongdoing with last month’s $450 Of course, doughnut fads have ence of the brand while looking for More seriously, the LIBOR set- town Manhattan. million settlement.It looks like oth- cooled in the past. A decade ago, money to open up a shop,” he said. tlements could eclipse the record $7 In addition, Clifford Chance is er banks will be forced to do the Krispy Kreme made headlines for Such burgeoning companies are billion shelled out nearly a decade representing Barclays and former same, making it easier for plaintiff its rapid expansion—and subse- also taking advantage of the city’s in- ago to end the Enron class action and Barclays CEO Robert Diamond, lawyers to demonstrate the banks quent collapse as customers grew creasing number of food markets to $6 billion for WorldCom,Mr.Zweig and Morrison & Foerster is report- are liable for damages. tired of its gooey wares.At one time, expand their sales.Wonder City sells said.“This has the potential to make edly representing former Chief Op- Krispy had nine Big Apple stores. at the Hester Street Fair,for instance. those look like pocket change.” erating Officer Jerry del Missier. Meet the LIBOR expert Today it boasts only one. Two-year-old Dough has made Michael Rafkind is hoping some Those big law firms figure to get The tricky part,lawyers said,will Even Dunkin’Donuts,the largest an especially strong local name for of the windfall will blow his way.He even more work as shareholders be- be tallying up the financial damage New York City chain store, with 466 itself in Brooklyn by selling at the oversees more than 100 court re- gin to file suits. The first such com- done by the banks’shenanigans,and locations in the five boroughs, did Brooklyn Flea and at the Smorgas- porters at his financial district- plaint came on July 10, according to for that they will need experts well not add any outposts last year after burg food market in Williamsburg. based Reporter’s Ink Corp. His re- the Stanford Law School class-action versed in the intricacies of interbank opening 37 in 2010, according to a In addition to selling out of its Bed- porters are freelancers who depend clearinghouse,when Manhattan firm lending and market manipulation. study of local franchising trends by Stuy shop, the company, which was on getting called in by law firms, in- Wolf Haldenstein Adler Freeman & Fortunately, there is one here in the Center for an Urban Future. created by Fany Gerson and Thier- surers and other parties that need Herz filed a complaint in Manhattan New York: Rosa Abrantes-Metz. ry Cabigos, also wholesales at someone to take depositions and federal court alleging Barclays misled She works at consulting firm Glob- Pioneering gourmet doughnuts Brooklyn Roasting Co. in Dumbo. prepare other legal documents. shareholders about its financial con- al Economics Group and is an ad- A boom-and-bust history isn’t Of course, there are some draw- “I wish I had work for all my peo- dition when it submitted artificially junct professor at New York Univer- worrying the newcomers. At backs to so much consumer de- ple every day,”Mr.Rafkind said.“The low figures for the daily LIBOR cal- sity who in 2008 co-authored a Doughnut Plant, Mr. Israel pio- mand. LIBOR litigation could really help.” culation published by the British paper pointing out longstanding neered the new breed of gourmet “I gained a lot of weight during The rate-rigging scandal is al- Bankers’ Association. In addition, problems in the LIBOR market. doughnuts—and is finally reaping the testing process,” Ms. Gerson ready generating more work for ac- state regulators in America,including “I can’t comment on any calls I’ve the benefits. said. She’s currently working on countants. As part of its settlement the New York attorney general’s of- gotten,” Ms. Abrantes-Metz said When he started his business in strawberry jalapeño doughnuts and last month with U.S.regulators,Bar- fice,have begun investigations.Banks last week. “But I do have a lot of 1994, he had a tough time convinc- a peaches-and-cream variety.Watch clays was required to beef up its audit that aren’t involved in setting LI- thoughts about LIBOR.” Ⅲ ing markets like Dean & DeLuca out, waistlines! Ⅲ and data monitoring.That could be a BOR, such as Goldman Sachs and that his goods were more than junk boon for its accounting firm, Price- Morgan Stanley, may also bring suits LISTEN to a discussion at food. But after six years, he gained LISTEN to a discussion at waterhouseCoopers, which was paid on behalf of clients. CrainsNewYork.com/podcasts enough steam from wholesaling to CrainsNewYork.com/podcasts

July 23, 2012 | Crain’s New York Business | 23 20120723-NEWS--0024-NAT-CCI-CN_-- 7/20/2012 6:19 PM Page 1

Broadway’s family act

Continued from Page 6 the Upper East Side,”Mr.Davenport turn 5 or 6, and their daughters to said. “That you’re not serious theater Wicked when they turn 8 or 9, there if families from the suburbs are is an endless steady supply of new climbing into a minivan and going to ticket buyers for those shows. see your show.” Still, the market for tots and teens But the producers of these shows isn’t without boundaries. Some the- are quick to point out that their mu- ater executives question whether so sicals are suitable and enjoyable for many of these shows can survive. both families and other demo- “There are a lot of people fight- graphics. ing for the family audience,” said Ms. Tepper Madover says she producer Ken Davenport. “I’m not thinks women who saw the musical sure there are that many families go- Annie 30 years ago as children,as she ing to that many shows,especially on did, will flock to the show whether weeknights.” they have kids or not. Cinderella, for example, isn’t just the traditional Not just for families child’s fairy tale. It has a new, witty Even Disney, the granddaddy of and more modern book written by family fare with numerous hits like Douglas Carter Beane, who wrote Mary Poppins under its belt, is care- the book for Xanadu. The current fully trying not to brand itself as kids’ play Peter and the Starcatcher has entertainment.Executives there were been attracting kids because of its not made available for an interview. Peter Pan branding but has numer- “There’s a fear that if you’re labeled ous adult references and jokes. a ‘family show,’ you’re going to lose “It’s the Pixar model,” said Eva those New York theatergoers from Price, producer of Peter.“People say, ‘My daughter didn’t get that, but I LISTEN to a discussion at got that,’ and ‘I didn’t think that fart newsbloomberg CrainsNewYork.com/podcasts joke was funny, but she loved it.’ ” Ⅲ SWEET MUSIC: Shows for kids are having great success. Clockwise from top left, Matilda the Musical, Mary Poppins, The Lion King and Newsies. Soda wars bubbling over Mobile ad gold rush

Continued from Page 3 proposals in other states.All of them country, from filmmaker Spike Lee Continued from Page 3 erate display ads on phones to the of similar city and state legislation have been defeated. to medical professionals and aca- shown restaurant ads, for instance, degree they do on computers.Along across the country if New York “It’s been a successful strategy for demics, who support the ban. when they’re in a mall at lunchtime. with having smaller screens, phones adopts the regulation. the ABA to spend money on lobby- “We understand that the mayor Other opportunities include run- are more personal, and users may “There is the threat of other mu- ing,” said Julie Greenstein, deputy has appointed the members of the ning campaigns across multiple not want to be pitched on them in nicipalities picking this up,” said director of health promotion policy board and the implications of that,” screens and reaching users as they the same way. Chris Gindlesperger, a spokesman Mr. Gindlesperger said. move among them. The aim is to “You can’t just slap a display ad on for the ABA. “We are prepared to Everyone is watching what hap- keep showing ads to a user who’s in- a mobile screen and call it mobile devote the resources necessary [to Everyone is pens here, Ms. Greenstein said, terested in the product and avoid advertising,” said Phuc Truong, fight it].” adding, “It could set a precedent.” showing them to someone who isn’t. managing director of Mobext, the watching mobile-marketing division of ad Successful track record Not giving in Survival of the fittest agency Havas Digital. While the Washington, D.C.- what happens The ABA is hardly giving up its Darren Herman, chief digital Still, some New York ad-tech based trade group would not dis- fight. In addition to a print and ra- media officer at ad-buying agency firms are striking gold by filling in close how much money it’s spend- here dio advertising campaign,the group the Media Kitchen—and president the mobile-advertising ecosystem. ing, it has a record of defeating the sent out mailers to several hundred of investment firm kbs+ Ventures— Two-year-old ad-tech company legislative initiatives it targets. thousand New Yorkers urging them estimates that more than 100 new Tapad—which specializes in reach- When Gov. David Paterson’s pro- to send a letter of complaint to mobile ad-tech firms have joined the ing users across all screens and find- posed budget in 2010 included a Health Commissioner Thomas market over the past three years. ing consumers likely to make a pur- penny-per-ounce tax on sugar- for the Center for Science in the Farley. It also hired 50 canvassers to They can’t all survive,but there could chase—just moved into a new sweetened beverages to raise money Public Interest, an advocacy group. get signatures on a petition protest- be riches in store for the ones that do. 7,000-square-foot headquarters in for health care and help reduce a Because the mayor’s proposal is ing the ban.As of last Friday,the pe- “Apple and Google aren’t done Chelsea. That’s more than double deficit, the ABA spent $12.9 mil- circumventing the legislative tition had some 82,000 signatures making their acquisitions,” Mr. the size of its old one. lion on lobbying activities at the process and being vetted by his from individuals and more than 800 Herman said. The company needs the space for state level, according to the New Board of Health,it will be harder for businesses. There were 38 deals for mobile the 60 to 80 employees it expects to York State Commission on Public the industry to influence the out- On July 23, New Yorkers for ad-tech companies in 2011—more have by the end of the year, up from Integrity. The governor withdrew come. To bolster its position before Beverage Choices is holding a rally than triple 2009’s number, accord- its current 30. Founder and CEO the proposal in his budget. the July 24 hearing, the city has re- outside City Hall. Joining it will be ing to investment bank Berkery Are Traasdahl said revenue will This year,there have been at least leased statements from dozens of labor officials, four City Council Noyes. The firm counted 21 acqui- grow by 400% this year. a dozen similar so-called soda-tax prominent leaders from all over the members and the chair from the Re- sitions in the first half of 2012. gional Hispanic Chamber of Com- A lot still has to happen for mo- Fast-changing industry merce, which says bodegas and oth- bile advertising to reach its poten- Revenue is growing that fast at er Latino-owned businesses will be tial. Media buyers describe a bit of a StrikeAd, too, according to Mr. hurt by the portion limit. Wild West atmosphere, with no Rahaman. He and other mobile- The Teamsters union’s Local industry-recognized standards for advertising entrepreneurs say that 812, which represents more than measuring how many users saw a because the industry is changing 2,000 workers who deliver and campaign, or for showing agencies fast, older, larger players don’t nec- manufacture soft drinks in the area, where those ads were served. Mar- essarily have an advantage. fears that its members’jobs would be keters also want more reliable meas- “Technology exists today that affected if the big bottlers have to ures of how well campaigns deliver didn’t exist three years ago,” said invest in expensive new machinery. on business objectives. Anthony Iacovone, founder and None of their machines makes a 16- “A year and a half ago, we were at CEO of 2-year-old mobile ad net- ounce bottle, noted Joe Vitta, the the stage of where we were in desk- work adTheorent, which has devel- secretary-treasurer of Local 812. top [Web advertising] in 1998,”said oped a “big data”solution for target- FIGHTING “This all happened so quickly,” Ryan Griffin, group director of me- ing consumers. “The computing CITY HALL: Mr. Vitta said of the mayor’s pro- dia and mobile at Digitas. “It’s now power, things in the cloud, the high A protester posal. “No one has had time to fig- feeling like 2004.” speeds—you can be much more ef- sounds off on ure out what to do.” Ⅲ In addition, some experts say fective now.” Ⅲ the proposed that mobile marketing requires new soda ban. LISTEN to a discussion at ways of engaging with consumers, LISTEN to a discussion at CrainsNewYork.com/podcasts CrainsNewYork.com/podcasts newscom and question whether users will tol-

24 | Crain’s New York Business | July 23, 2012 20120723-NEWS--0025-NAT-CCI-CN_-- 7/20/2012 5:29 PM Page 1

INSIDE HELLUVA TOWN Source Lunch A Medicare Russell Reynolds’ career serenade of searching PAGE 26 As a lifelong working musician Out and About and composer, Derwyn Holder, 74, London comes to knows the perils of getting big medical bills on an artist’s salary. New York PAGE 27 In recent years, Medicare footed the bill for several major medical procedures. In gratitude, Califon, N.J., resident Mr. Holder has penned Symphony No.1/Medicare. “This is my thank-you to Medicare for the care I got,” he said. “It was about $400,000 worth: cardiac procedures, back

surgery. I got very sick.” He describes his orchestral work as “very harmonic, lots of color.” “You could say I’m trying to out- Shostakovich Shostakovich,” he said. It is his first symphony.“I’m basically a jazz guy,” the former Central Park West resident said, noting that he’s cut records on the BMI label and played at clubs like the Blue Note. Now he’s shopping for a large orchestra interested in premiering TWO GENERATIONS: the work. “This is music to (From left) Tommy our ears,” said a Centers for and Brian Hart, Victor Medicare & Medicaid Services Chavez and Victor Jr., spokesman. Alan and Michael —gale scott Stillman, and Kevin Dillon Jr. and Kevin. Healthy-eating standard Plenty of restaurants claim to offer healthy food. Emmanuel Verstraeten, the owner of Rouge Tomate, has launched SPE Certified, a program that he hopes will become the LEED standard. SPE, sanitas per escam in Latin, means “health through food.” The logo on a menu certifies that ingredients are locally sourced, high in nutrition and low in fat. The process goes way beyond farm to table: Butter and cream are verboten, except for a smattering in desserts. Grilling and deep frying? Also off-limits Keeping it in the family (grilling can introduce carcinogens). The SPE staff performs a deep At Smith & Wollensky, it’s not unusual to see nutritional analysis and specifies everything from calorie counts to fathers and sons working together portion size. “We engineer our dishes to ensure a maximum of nutrition and satiety,” said Nil buck ennis Sönmez, chief operating officer. It all sounds a bit dry, but the BY LISA FICKENSCHER BOYS’ CLUB company’s motto, “Above all, taste matters,” is meant to convey that Smith & Wollensky’s the recipes are still delicious. “We employees bring in the want people to make the choice to iners may go to Smith & Wollensky for its dry-aged steaks and fine next generation eat healthy and not regret it,” said wines. But it’s the über-loyal staff that has really kept the New York Ms. Sönmez. The SPE team works with institution humming for the past 35 years. ¶ Fealty to the old-school chefs to create three certified chophouse extends beyond one generation, as many longtime workers dishes each season for $3,600 have brought their sons into the fold and view the eatery as an extension annually. Eateries that have signed on include Seasonal Restaurant & of their families. ¶ The restaurant boasts 13 longtime staffers with an Weinbar, Danji and East fathers29 and sons average tenure of 28 years, who work side by side with their offspring. Hampton’s Maidstone. —valerie block Altogether, 29 fathers and sons work at the restaurant, from pantrymen and their boys to Smith & Wollensky’s famous founder, Alan Stillman, 75, and his son, Michael. ¶ There is no single reason for this familial phenomenon, but Michael, 32, insists it is not nepotism. DAll hiring, he said, is based on merit and a thorough vetting. ¶ “That’s very important to me in particular, because I understand how that can be viewed,” he said. ¶ The staff credits good pay and benefits and a five-day workweek—which was uncommon in the See KEEPING on Page 26 200total employees

July 23, 2012 | Crain’s New York Business | 25 20120723-NEWS--0026-NAT-CCI-CN_-- 7/20/2012 6:40 PM Page 1

SOURCE LUNCH: Keeping it in the family RUSSELL REYNOLDS by Aaron Elstein Continued from Page 25 Alan, “but I was pleased when he bond he and his father share, cook- restaurant business until more re- did.” ing in the same kitchen. “Some- cently—for their loyalty. Smith & Michael,who refers to his father times he and I are working literally Wollensky, located at Third Av- as “boss,” has assumed much of right next to each other,” he said.“I enue and East 49th Street, is also Alan’s duties over the past nine appreciate that. I don’t take that for a union shop, which means that its years. “I’ve pulled back 100%,” said granted.” A half-century hourly workers have health insur- Alan, adding, “I don’t even have a Kevin Dillon and Kevin Jr.: Kevin ance and the other benefits of a la- title at the company.” Dillon still pinches himself when bor contract. The two are not afraid to con- he sees his son, Kevin Jr., walking of searching Bill Granfield, president of Lo- tradict each other: “Alan’s title is around the restaurant as manager cal 100, which represents the founder,” insisted Michael,“and he of the Grill, a more casual eatery restaurant’s workers, said he is not is definitely involved.” within the steakhouse. ussell Reynolds is the changed careers, I had lunch with my aware of another eatery in the city Victor Chavez and Victor Jr., Hugo “I can’t believe that my son is godfather of head- mentor, who introduced me to some- with so many family members and Alexis: Victor Chavez, executive working in a position that I started hunters. For nearly five one by saying: “Here’s Russell working together. chef for the past 25 years, brought out in after I graduated from col- decades, corporations Reynolds, and he knows more about “If you need six months off or three sons with him. lege,”said Mr.Dillon,chief operat- and governments have the search business than anyone else.” one day to do something, we are “I had my first shave at Smith & ing officer of Fourth Wall Restau- Rcalled him to find just the right per- It made me think,if I know more than very flexible with those kinds of Wollensky, brought my first girl- rants, which was formed after the son to help run a company, from anyone else, why aren’t I working for things,”said Alan Stillman,a mav- friend there and my prom date,” New York restaurant broke off JPMorgan Chase to Verizon to myself? So I opened my own firm with erick restaurateur who founded said Victor Chavez Jr., 29. from the national Smith & Wol- British Steel. Such is Mr. Reynolds’ $10,000, half of which I borrowed. Victor Jr., a saucier, refers to his lensky chain. influence in the search world that the father as “chef ” in the kitchen. He The incredulous feeling is prob- eponymous firm he launched in In recent years, pay for the type of ‘Sometimes we and his three brothers started ably the same for some of the oth- 1969 still bears his name—even executives you place has soared while working during the summers at er employees at the Grill,who were though he left it 19 years ago. The incomes for most people have been flat. work next to Smith & Wollensky when they hired by Mr. Dillon 20 years ago 80-year-old recruiter has just written What can be done about that? each turned 14 years old. Hugo, a and attended his son’s christening. a book called Heads: Business Lessons The basic answer to that question is we each other. I waiter, and Alexis, a pantry man, The Dillons are close, sharing a From an Executive Search Pioneer. all need a better sense of perspective. I still work there. passion for food and cooking,living especially worry that the big banks are don’t take that Their father, who was born in just 10 blocks from each other on What makes you good at search? losing touch with, and the respect of, Ecuador,oversees a staff of 25 dish- the Upper East Side. But some- I was raised around business leaders— their clients and employees. for granted’ washers and 30 cooks, who crank times their shop talk at home is too my grandfather invented Philadelphia out up to 800 dinners a night. He much for the rest of the family. Cream Cheese and sold it to Kraft, Which banks? was part of the culinary team that “Eventually my wife will put up her and my mother ran a business build- Citigroup to me is the single biggest opened Smith & Wollensky in hand and say,‘That’s enough,’”said ing houses when women simply did- embarrassment in corporate Ameri- 1977. the elder Kevin. n’t do that. I’m from Greenwich, ca. The stock price is ridiculous. T.G.I. Friday’s in 1965. “I think As with all kitchens, tempers To distinguish between the two Conn.,the 11th generation Vikram Pandit is the wrong people stay with us for a long time can rise. “We are lucky that we at work,the son,23,is known as Ju- to live there, which means WHERE person for the CEO job. because of our way of running the haven’t all killed each other yet,” nior, though he manages a staff of my family literally cut down He’s a good man, but the restaurant like a mom-and-pop said the father, laughing. “I go di- 15. the trees, farmed the fields, THEY bank needs a world-class business.” rectly to the sous chef, my bulldog, “I try to show my dad that I can killed the Indians and all DINED leader, and he’s a trader. Like most steakhouses, howev- if I see him [Victor Jr.] doing some- be just like him,” Junior said. that. Growing up, I knew THE FOUR er, the culture is distinctly mascu- thing I don’t like,” he adds. Tommy Hart and Brian: Not every people like the Bush family SEASONS To be fair, Mr. Pandit took line, which may explain why there Alan Stillman paid for Victor, father-and-son team is a good fit at and served on the finance 99 E. 52nd St. over a tough situation and Citi is just one example of a mother and 59, to go to the Culinary Institute the restaurant, said Tommy Hart, and executive committees 212-754-9494 at least is making money www.fourseasons her child working at the 200-em- of America in midcareer. He also 55, who has managed the chop- for George H.W. Bush restaurant.com again. ployee eatery—and it is a male cook paid for Victor Jr. to get an educa- house since 1984. when he was running for The bank might be making who brought in his mother to the tion there, with each given time off “We’ve had a few cases where president. AMBIENCE: money,but shareholder val- restaurant, where she launders the to complete externships in Europe. the sons did not work out and were Ultimate power- ue has been eviscerated over How did you get into the lunch scene staff uniforms on a part-time basis. “We have been good to each fired,” he noted.“But generally the stocked with the the past five years.A corpo- The Stillmans also own four oth- other,” said the father of his boss. fathers are all great workers, and search business? rich and ration’s first responsibility is er high-end restaurants and a night- Victor Jr. is keenly aware of the you hope it carries down to the I was a banker at JPMorgan sometimes- to its customers. Its second club in Manhattan under the um- children.” in the 1960s,and I had got- famous who is to its shareholders, and if glance around to brella of Fourth Wall Restaurants,of The two Hart sons grew up at ten a reputation as being a measure up who’s the bank is now starting to which Michael is president. the restaurant,spending entire days people person and gregari- eating with whom. make money, shareholders But Smith & Wollensky is the LABOR STRIFE watching the stewards stock the ous. The bank wanted me are certainly not seeing it. heart of and the oldest business in basement and the butcher carve up to move into the personnel WHAT THEY ATE: Citigroup’s dividend rate is IN THE PAST Ⅲ Spinach salad the company, where, according to slabs of meat. office, but I didn’t want entrée four cents—a far cry from General Manager Tommy Hart, THE STILLMANS’ relationships The elder son, Thomas, 28, that. At about the same Ⅲ Soft-shell crab Wells Fargo’s 88 cents or “we have 20 guys with one thing on with employees at some of their graduated from Cornell Universi- time, a friend explained to entrée JPMorgan’s $1.20. I do not their résumés—Smith & Wollen- other restaurants have not ty’s School of Hotel Administra- me the recruiting business, Ⅲ 2 herring see this downward spiral re- sky—and I’m one of them.” always been harmonious. tion but decided that he was better how it was about making a appetizers versing anytime soon. Ⅲ Crain’s talked to several fathers In 2005, they shelled out suited for a career on Wall Street, fee from connecting peo- 2 Diet Cokes, large bottle of Who would you recruit to and sons to find out why Smith & $164,000 to settle litigation at while his younger brother, Brian, ple. My first thought was, sparkling water Wollensky has become such a fam- two of the eateries—Cité (now 24, was so eager to join Smith & that’s immoral. But then I Ⅲ Tab: $188.42, replace him? ily affair. closed) and Park Avenue Café— Wollensky that he wanted to drop understood it was an inter- including tip My first call would go to Alan and Michael Stillman: at which a combined 23 workers out of college to do so. esting job,one that requires Michael Bloomberg. Give Michael Stillman grew up around claimed they were not paid His parents would have none of learning about lots of different busi- him 10% of the company’s stock to at- the restaurant business, but unlike overtime wages. that.“I wasn’t allowed to work here nesses and the people in them. Smart tract him, because he’s the most com- nearly all of the other sons of Smith The restaurants were unless I got my degree,” said Brian people do well at it. petent businessman I can think of.Rex & Wollensky, he didn’t spend his among the first targets of a of his parents’ultimatum.He’s now Tillerson of Exxon or Sam Palmisano summers toiling in the kitchen or What did people think of your career of IBM would also be good, and powerful worker advocacy a bartender. busing tables there. Although his father is his boss, switch? maybe [former Wall Street senior ex- group, “I didn’t grow up working in my Restaurant Opportunities there is a layer of management be- My father said, “Has something gone ecutives] John Mack or John White- father’s restaurants,” said the Center of New York, which was tween the two. wrong at JPMorgan?” He thought I’d head, if he were 30 years younger. I Brown University graduate, who just gearing up around that time. “The staff knows who he is and been fired because no one ever left the think Paul Volcker would be terrific, has a degree in art and African- ROC NY staged public they try not to treat him different- bank voluntarily. Six weeks after I but he’s also too old for the job. Ⅲ American political theory. He got protests and loud rallies outside ly, which helps,” said Tommy. But his start in the industry working for both restaurants, discouraging the GM acknowledged the poten- one year for another famous restau- many potential diners from tial for conflict. INSIDE TIP rateur, Danny Meyer, and then patronizing the eateries—and “I don’t ever review my son, but Mr. Reynolds, a Four Seasons “caught the restaurant bug,” he putting pressure on the I do review the guy who reviews regular, prefers eating up front in the Grill said. Stillmans to settle. him,” Tommy said. “Brian is told “I definitely didn’t encourage —LISA FICKENSCHER when he’s not doing his job, but Room. It’s the better place to be seen. him to go into the business,” said that doesn’t happen often.” Ⅲ

26 | Crain’s New York Business | July 23, 2012 20120723-NEWS--0027-NAT-CCI-CN_-- 7/20/2012 5:30 PM Page 1

OUT AND SNAPS HAMPTONS SOCIAL SCENE HEATS UP ABOUT by Emily Laermer and Miriam Kreinin Souccar

$125. For more information, call (718) 965-8988 or visit www.prospect park.org. CAREER BUILDERS TUESDAY, JULY 24 Richard Brewster, executive director at the National Center on Nonprofit Enterprise, will lead an online training session, IMPROVING YOUR NONPROFIT’S FINANCIAL HEALTH. Topics include an CULTURE FIX organization’s balance between money WEDNESDAY, JULY 25 and mission, understanding short- and

The Metropolitan Opera will kick off its long-term financial health and making a mcmullan patrick SUMMER RECITAL SERIES at 8 p.m. at nonprofit more financially healthy. Broadway producers STEWART LANE and BONNIE Central Park SummerStage with Tickets are $45. Attendees are eligible mcmullan patrick COMLEY at the Parrish Art Museum bash in Southampton. performances by soprano Danielle de for continuing-education credit. For Hotel magnate IRA DRUKIER with his wife, GALE DRUKIER, at the Parrish Art The museum, founded in 1897, is undergoing an expansion Niese, bass-baritone John Del Carlo, more information, visit marketplace Museum’s 2012 Midsummer Party in Southampton. The gala, held on July 14, that will triple its exhibition space and allow it to present loan tenor Dimitri Pittas and pianist Dan .foundationcenter.org. raised $650,000 for the museum. About 450 people attended the event, one of exhibitions and works from the permanent collection Saunders. The series, which lasts the most prestigious on the Hamptons social calendar. simultaneously. The new building will open in November. through Aug. 9, will feature six concerts THURSDAY, JULY 26 across the five boroughs. All concerts are Just after the second anniversary of the free. For more information, visit Dodd-Frank law passage, experts will www.metopera.org/summer. discuss its impact at MANAGING RISK: CAN DODD-FRANK PRUDENTIAL THURSDAY, JULY 26 REGULATIONS PREVENT ANOTHER CRISIS? The Prospect Park Junior Committee The event, hosted by Bloomberg LP,will will host its 10TH ANNUAL SUMMER include a panel with Credit Suisse Chief SOIREE. The event includes cocktails, hors Risk Officer Daniel Rodriguez, d’oeuvres, boat rides and a DJ. Attendees Morrison Foerster partner Dwight C. must be 21 or older. It will be held at the Smith III and Protiviti Managing Boathouse in Prospect Park. A preparty Director Cory S. Gunderson. The free begins at 6:45 p.m, and the soiree begins event is at 5 p.m at 731 Lexington Ave., at 7:30 p.m.Trolleys from Grand Army between East 58th and East 59th streets. Plaza will be available starting at 7 p.m. For more information, contact Reginald Tickets for the event start at $85, and Abron at (212) 983-1800 or packages that include the preparty start at [email protected]. cindy ord cindy WENDY DIAMOND, animal-rescue advocate and pet-lifestyle adviser, with BABY HOPE, her Coton de Tulear, at the “pet DON’T MISS LONDON COMES TO NY wedding of the century” fundraising event earlier this month. The christine a. butler FRIDAY, JULY 27 gala raised more than $50,000 for the Humane Society of New The Frick Collection Garden Party on July 11 raised $170,000 for the York. Ms. Diamond, whose pup got “married” to a poodle named Manhattan arts institution. Featured here (from left): Garden Party co-chair To coincide with the opening of the London Chilly Pasternack, threw the event to help the Humane Society AYESHA BULCHANDANI-MATHRANI, Frick Director IAN WARDROPPER 2012 Olympics and Paralympic Games, the and to celebrate the life of her late rescue Maltese. and MARGOT BOGERT, chairman of the board. Museum of the City of New York will debut a LONDON STREET PHOTOGRAPHY exhibit. It will feature 160 street-scene photographs of iconic images of the city from 1860 to 2010. A smaller companion exhibit on New York will also be on display.The museum, located at 1220 Fifth Ave., is open daily from 10 a.m. to 6 p.m. The suggested admission price is $20 for families, $10 for adults, $6 for seniors and students, and free for children Crain’s New York Business under 12 and members. For more information, visit www.mcny.org. @CrainsNewYork Crain’s New York Business thoroughly covers NYC’s major OPENING FUNDRAISERS industries, including Wall Street, media, the arts, real estate, retail, SATURDAY, JULY 28 TUESDAY, JULY 24 hospitality, and more. SPIDERS ALIVE will open at the Fourteen private homes will host concurrent New York, NY http://www.crainsnewyork.com American Museum of Natural dinners through A CITY FARMER, A CHEF & A History.The live exhibition will HOST. Proceeds will benefit Just Food and the include information about Sylvia Center’s dual efforts to increase locally spiders’ anatomy, diversity, grown and healthier foods in underserved venom, silk and behavior, and will communities. Guests will spend time with one Crain’s Stats and The City remain on display through Dec. 2 prominent city chef, one urban farmer and one at the museum. notable host. Each gathering will seat 12 to 25 @StatsAndTheCity The museum, guests. Tickets are $500. For more Crain’s Real Estate News with numbers, brought to you by at 200 Central information, including the list of participants, @CNYBRealEstate Park West at visit www.cityfarmerchefhost.org. @CrainsNewYork. 79th Street, is New York, NY http://www.crainsnewyork.com/cityfacts open daily from THURSDAY, JULY 26 Daily coverage of real estate breaking news, deals, 10 a.m. to 5:45 Leadership Through Sports Inc. will host its executive moves, and events. p.m. Tickets, THIRD ANNUAL WINE TASTING. Proceeds will New York, NY http://www.crainsnewyork.com/realestate which include admission to the benefit the LTS/CNC All Stars, a sports- museum and based youth development program. Donations the exhibit, are $25 for adults, are requested. The event will be held at 6 p.m. $14.50 for children and $19 for at Moore Brothers Wine Co., 33 E. 20th St., Crain’s Small Business students and seniors. For more between Park Avenue South and Broadway. @CNYBsmallbiz information, call (212) 769-5100 For more information, visit www.leadthrough or visit www.amnh.org. sports.org. The @CrainsNewYork guide for small businesses that helps you learn what you need to succeed. MARK YOUR CALENDAR… New York, NY http://www.crainsnewyork.com/smallbiz WEDNESDAY, AUGUST 7, TO SUNDAY, SEPTEMBER 16 Tickets are now available for HEARTLESS, a new play by Sam Shepard, directed by Daniel Aukin. The cast includes actors from Boardwalk Empire and The Illusion. The production will be presented at the Irene Diamond Stage at the Pershing Square Signature Theatre at 480 W. 42nd St., at 10th Avenue. Tickets are $25 and can be purchased by calling (212) 244-7529 or by visiting www.signaturetheatre.org.

July 23, 2012 | Crain’s New York Business | 27 CN015229.qxp 6/15/2012 5:16 PM Page 1

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