REAL ESTATE Fencing Tax Increases That May Be Needed to Pay for Them

Home , 1 Rockefeller Plaza, Erinn Smart, Karina Pasian, Sandra Fong, Sons of Anarchy, Testees

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BUSINESS LIVES TOP STORIES New Yorkers Cable steps up its catch case of invasion of the fall poker fever television schedule PAGE 31 PAGE 3 ® Revlon faces long uphill climb to regain stature VOL. XXIV, NO. 30 WWW.CRAINSNEWYORK.COM JULY 28-AUGUST 3, 2008 PRICE: $3.00 PAGE 3 NYC’S OLYMPIANS CARRYING A TORCH: Mets are on a hot NYC’s Olympic athletes MTA’s gap will soon be arriving streak; so are Citi at National Stadium in Beijing. Field suite sales Sadam Ali in funding Brooklyn NEW YORK, NEW YORK, P. 6 19 Boxing One small corner of pressures the music business Emily Cross Manhattan business is still flourishing 22 Fencing VALERIE BLOCK, PAGE 11 Execs want upgrades Anthony Famiglietti but not tax hikes; Manhattan 29 priorities may shift Steeplechase getty images BY ERIK ENGQUIST SUMMER GAMES Sandra Fong Manhattan 18 the metropolitan Transporta- Shooting tion Authority’s fiscal woes have put the business community in a Timothy bind. Business leaders favor im- Local Olympians Morehouse provements to the rail network that Bronx powers the city’s economy, but not 30 REAL ESTATE Fencing tax increases that may be needed to pay for them. G After the boom, face unique trials The issue is coming to a head. Erinn Smart area contractors Brooklyn The MTA’s immediate problem is prepare for hard “It’s not a common sport here,which 28 closing a $900 million operating In the shadow of Fencing times to come makes things a little more difficult,” deficit for next year, but its long- celebs, athletes get little says Ms. Fong, who stores her .22 cal- term dilemma is how to deal with a G Largest property iber rifles on Long Island and must $20 billion shortfall in its next five- Keeth Smart sales and leases support, few cheers; travel to shooting ranges upstate or in Brooklyn year capital plan.Two fare hikes are fencing one exception New Jersey to practice. 29 planned to help balance the books PAGES 17-26 She is one of the nine New Yorkers Fencing over the next few years,but the proj- on the U.S. Olympic Team competing ects that business leaders have BY HILARY POTKEWITZ AND in the summer games.Like the others— sought need substantial new rev- AMANDA WHEAT Chen Wang a boxer, four fencers, a table tennis play- Manhattan enues. Congestion pricing, which AT DEADLINE er, a judoka and a steeplechaser—she 34 had been the favored option of most sandra fong,an 18-year-old Manhat- lives and trains, and will most likely re- Table tennis business leaders, died in April. THE NEW NEWSSTANDS BEING tanite, will represent the United States turn from China, in relative obscurity. Executives may argue for cut- INSTALLED IN NEW YORK CITY in sharpshooting next week at the Sum- The eight to 10 residents who have See MTA SHORTFALL on Page 9 Taraje Williams- are as much as nine inches mer Olympics in Beijing, even though gone to each Olympics since 2000 have Murray shorter than they are supposed she’s too young to own a gun in New received scant support from the city. Bronx STIFF OPPOSITION Nearly 80% to be, according to newsstand York City. See NO SPOTLIGHT on Page 8 23 say MTA isn’t justified in seeking operators, and that’s costing Judo latest fare increase them valuable retail space.The MORE OLYMPICS Scores of local execs are headed to Beijing See Page 2 See Page 11 New York City Newsstand Operators Association is also complaining that the stands are taking four weeks or more to be installed, twice as long as the city had promised.The city Commodities broker’s chief faces revolt Department of Transportation says the stands meet its specifications. Cemusa, the MF Global shareholders ready votes THE YEAR OF LIVING DANGEROUSLY company installing the stands, after huge trading loss; shares crater says it is working to resolve the construction issues. “dusted with pink sand and lapped BY AARON ELSTEIN by turquoise sea.” QUEENS BOROUGH PRESIDENT Today, however, the scene at HELEN MARSHALL WILL ISSUE the elbow beach hotel is one of the resort will be anything but idyl- an advisory opinion early this Bermuda’s poshest. It boasts se- lic.There,Kevin Davis,the embat- See AT DEADLINE on Page 2 cluded cottages, landscaped gar- tled chief executive of commodi- dens and a beach described as ties broker MF Global Ltd., will convene the firm’s annual meet- 12-month change MF Global _ _ _ _ _ - 79%

30 ing—and struggle to keep his job Amex Broker-Dealer 5 in the wake of a stunning 79% plummet in the value of its shares Index ______- 42% in the past year. “I think Davis should be taken ELECTRONIC EDITION Kevin Davis out and shot,” says Greg Newton, Chief executive who owns 2,500 shares of Manhat-

NEWSPAPER MF Global

See FUTURES on Page 9 photo: bloomberg news graphic: lindström bekka 71486 01068 0 CNYB 07-28-08 A 2 7/25/2008 8:21 PM Page 1

HARVEY SCHILLER of the International Baseball Federation is AT DEADLINE hosting a bash in Beijing to get baseball back on the Olympic roster. Continued from Page 1 hospitals in New York.The week endorsing the city’s hospitals depend on the ambitious plans to overhaul factories to supply them with Willets Point in northeast inexpensive medical supplies Queens. Ms. Marshall is such as gloves, plastic basins and expected to give her IV tubing. “It already is causing imprimatur—with certain significant shortages for conditions—to the proposal to suppliers,” says David Rock, transform the dusty Iron managing partner of Carl Triangle into a development Marks Healthcare Partners in that includes housing, a hotel, a Manhattan. “It hasn’t hit convention center and retail hospitals yet, but they should space. She is likely to follow the start stockpiling those cheap lead of Queens Community vinyl items now.” Board 7, which approved the project while expressing METROPCS COMMUNICATIONS concerns about the use of INC. EXPECTS TO LAUNCH ITS eminent domain, lack of prepaid cell phone service in affordable housing and New York City early next year. continued community input It will be a challenge for the into the project. Business Dallas-based telecom provider owners resisting eminent to penetrate the region, since domain have vowed to take 85% of New Yorkers already their fight to the City Planning have cell phones. MetroPCS Commission, which will hold a offers flat-rate plans for hearing on the project Aug. 13. unlimited minutes with no contractual obligations for THE LOCAL TELEVISION tiered monthly fees ranging MARKETPLACE CONTINUES TO from $30 to $50. suffer: Advertising revenues at the six English-language New EMIRATES AIRLINE IS

York stations were down about SCHEDULED TO LAND THE FIRST buck ennis 15% in June, according to an A380 passenger flight at John F. industry executive. July is not Kennedy International Airport looking any better.The market on Friday, Aug. 1.The Airbus is expected to get a bump in jumbo jet is fully booked with August, courtesy of WNBC, 489 passengers, according to the which will be carrying the Dubai-based airline, the most Shilling for gold Olympics. Insiders say that 30- ever for a flight to a U.S. airport. second prime-time spots on Baggage distribution is expected Channel 4 are going for to take twice as long as usual. NY executives will get down to business in Beijing $75,000 to $85,000. Normally The Port Authority of New in the summer, a local spot can York and New Jersey spent $179 BY SAMANTHA MARSHALL run as low as $10,000 to million last year to reinforce $15,000. JFK’s taxiways to handle this staring at a pile of invitations on his desk—from a National Basketball Association new generation of wide-bodied NONESSENTIAL FACTORIES ARE jets. Beginning Aug. 8, Emirates shindig to a soiree hosted by Omega watches—Harvey Schiller is bracing for an intense 20 BEING CLOSED IN CHINA IN AN will operate three such flights days of nonstop networking at the Beijing Olympics, beginning next week.The president of attempt to clear the air before per week, becoming the first the International Baseball Federation is not only drawing more than a dozen offers a day, he’s the Olympics begin, and that carrier to schedule regular A380 also sending out a few of his own. On Aug. 11 he’s hosting a bash to help get baseball back on could create problems for service to New York. the Olympic roster, after it was axed from the 2012 games. “I’ll probably go to at least two events a day,” says Mr. Schiller. Forget the amazing feats of athleticism. From Aug. 8 on, the Beijing games will one big THIS WEEK IN CRAIN’S corporate schmoozefest. A battalion of New York executives will be right there in the thick of NEIGHBORHOOD things. From insurance companies looking for face time with license-granting Chinese officials See NY EXECUTIVES on Page 8 JOURNAL------9

VALERIE BLOCK ------11

THE INSIDER------12

THE WEEKS AHEAD ------14 Instant enrollment 2008

REPORT: REAL ESTATE ------17 Mercy College, Dobbs Ferry,N.Y.-based school, in- sional Studies offered instant ad- 33 TOP SALES LIST------22 cluding ones in Manhattan and the missions through its Paul McGhee others, try to attract Bronx. Applicants need only have Division.But the school nixed it be- DEALS------25 their high school transcripts in hand. cause “you need to look at the whole more applicants “[This] allows applicants to be person, and that takes a lot more WEEK IN REVIEW ------27 equipped with immediate answers than a day,” says an NYU BY SAMANTHA MARSHALL CLASSIFIEDS ------28 about their future,” says Deirdre spokesman. Whitman, Mercy’s vice Two years ago, Munroe SMALL BUSINESS ------30 in an effort to make the college president of enrollment. College in the Bronx intro- application process as convenient as The move is a way to 14% duced “Midnight Mad- BUSINESS LIVES------31 DECLINE in area possible and attract a larger pool of grow the applicant pool at a high school ness,” which allows students CORPORATE LADDER------33 prospective students, Mercy Col- time of dropping enroll- graduates who work nights to get help lege today launches a program called ment. The region is expect- over the next with applications. But every EXECUTIVE MOVES------33 five years 35 “Immediate Decision Week.” ed to see a 14% decline in the applicant has to interview BOB LAPE ------35 Touted as a kind of speed dating number of high school with a college counselor. for college admissions, registration graduates over the next five years, “You can’t find out if someone is the vol. xxiv, no. 30, july 28, 2008—Crain’s New York Business (issn 8756-789x) is published weekly by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals staffers will help applicants get according to estimates by the Com- right fit just based on transcripts,” postage paid at New York, N.Y. and additional mailing offices. Postmaster: Send address through the paperwork and gain in- mission on Independent Colleges says Evan Jerome,director of admis- changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a stant acceptance for the fall 2008 se- and Universities. sions at Munroe. copy, $59.79 one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents mester.The four-year college will set Other colleges have tried such copyright 2008 by Crain Communications Inc. All rights reserved. up admissions desks from 9 a.m.to 7 initiatives. New York University’s COMMENTS? p.m. at all five campuses of the School of Continuing and Profes- [email protected]

2 | Crain’s New York Business | July 28, 2008 CNYB 07-28-08 A 3 7/25/2008 8:18 PM Page 1 Cable’s fall invasion

in what’s on the upswing, with the Networks encroach originals on cable?” on broadcast’s turf And those shows will now be airing all year round. The Starter Wife, with new shows, but which had a limited run last sum- big 4 have the big hits mer, will launch as a series on Oct. 10; it will be the first USA original series ever to debut in the fall. BY MATTHEW FLAMM FX has a record four shows—two returning series and two new ones— television viewers will be work- premiering in September and Octo- ing overtime this fall to keep up with ber. Bravo is also setting a personal all the shows on cable, from new best, with three September debuts, dramas like The Starter Wife on USA including new reality series The Real Network and Raising the Bar on Housewives of Atlanta. Other net- TNT,to returning hits The Shield on works, including Comedy Central FX and Top Design on Bravo. and WE tv, also will launch new Oh yeah, and Heroes and Desper- shows this fall. ate Housewives will be airing over on “The television season isn’t ghet- the broadcast networks. toized anymore,”says Turner Enter- The big four networks still carry tainment Networks President Steve the biggest hits and command the SELECTED NEW SHOWS ON CABLE THIS FALL Koonin. highest prices for commercial time. The move into early fall stems in But cable, with substantial ratings NETWORK DEBUT DATE TIME NETWORK DEBUT DATE TIME part from cable having more origi- gains and growth in ad sales com- Raising the Bar TNT Sept. 1 10 p.m. The Real Housewives Bravo Sept. 16 10 p.m. nal shows. In addition, summer has mitments working in its favor, is of Atlanta gotten crowded. ramping up its invasion of the fall Sons of Anarchy (above) FX Sept. 3 10 p.m. Most important, the networks television schedule. The Locator WE tv Sept. 6 9 p.m. Testees FX Oct. 9 10:30 p.m. are following the money. Audiences USA,Bravo and FX will premiere The Rachel Zoe Project Bravo Sept. 8 10 p.m. The Starter Wife (above) USA Oct. 10 10 p.m. watch more and advertisers spend more new and returning series than more during the fall season. ever before during months that once “It just doesn’t make sense to only belonged exclusively to broadcasters. 1980s hit Knight Rider. ries this year.The May finale of Fox’s came the first basic-cable shows have new things to sell to advertis- “We can now go toe-to-toe with Fox will get out ahead of the pack American Idol drew 31.7 million. nominated for Best Drama Em- ers four months of the year,” says the broadcasters when it comes to with a week of two-hour premieres “The top 30 programs on net- mys—advertisers are increasingly John Landgraf, president of FX quality,” says Bonnie Hammer, for Prison Break and other returning work television set the price stan- turning to them. Cable’s ad sales Networks. president of USA Network and Sci shows starting Sept. 1, and for new dard for the ad market,” says David commitments jumped 8% this year, For some of the players,the com- Fi Channel.“That means we’ll con- drama Fringe the following week. Poltrack, chief research officer for to $8 billion, while broadcast’s were petition between broadcast and ca- tinue to move out of our safe zone in CBS will add a new night of CBS. “If cable starts to get into the flat, at $9.2 billion. ble is overstated.For example,USA, the summer and program four quar- comedy, and ABC will put its pro- top 30, there would be a paradigm “Does anyone care anymore if Sci Fi and Bravo are corporate sib- ters a year.” motional muscle behind Desperate shift, but not until then.” they’re watching a broadcast net- lings of NBC. Of course, broadcasters are plan- Housewives and Grey’s Anatomy. work or a cable network?” asks Mi- “Nothing is better than when ning their own fall offensive. The big four networks’ hits con- Growing acclaim raj Parikh, media director at ad we’re both doing well,” says Mitch NBC will kick off its season on tinue to dwarf the best of cable. The however, with cable’s original agency SMG/Spark Communica- Metcalf, executive vice president, Sept. 22 with a one-hour recap and recent season debut of TNT’s The shows now getting bigger ratings tions. “We counsel clients: Rather program scheduling, at NBC. two-hour premiere of Heroes.New Closerdrew 7.8 million viewers,mak- and more acclaim—AMC’s Mad than put more money into broad- shows include an update of the ing it the top cable telecast for a se- Men and FX’s Damages recently be- cast’s prime time, why not [invest] [email protected]

BY THE NUMBERS Cosmetics maker tries TOP VENTURE FUNDING WINNERS the 10 recipients of the largest venture investments to regain old luster in New York City companies in the second quarter include several companies outside the tech sector. In all, 80 companies in the New York area received $392.8 New products spur But critics million in the second quarter, according to say the company the quarterly survey by Pricewater- sales, but Revlon is facing a long, houseCoopers and the National uphill climb if it lags way behind is to make in- Venture Capital Association. top competitors roads against competitors like AMOUNT, Procter & Gam- NAME INDUSTRY IN MILLIONS BY ALIX STRAUSS ble and L’Oréal. Revlon is no RecycleRewards Environmental-related $30.0 revlon, the troubled cosmetics longer identi- ContextWeb Internet marketing services $25.0 maker whose shares have lan- fied as a trend-

guished for years, caught investors bloomberg news setter, has limit- IRX Therapeutics Immune response biotechnology $25.0 by surprise recently when it released SHELF APPEAL: Revlon is trying to revitalize its main brands, like Almay. ed shelf space at [x+1] IT services $16.1 preliminary results for the second major retailers, quarter. While analysts were ex- and has not ex- Sixth Gear Solutions Financial services $14.0 pecting a loss of about $11 million, and new products. Last year, tended its brand successfully in in- OLX Information/content $13.5 or 2 cents a share, the company said Revlon’s Colorist, a hair-coloring ternational markets. it expected to swing to a profit of $20 product, was the biggest launch in Founded in 1932, Revlon was Hanger Network Advertising, public relations $10.0 million, or 4 cents a share, on an 8% that category. One industry expert once a powerhouse in the cosmetics TxVia sales increase. speculated that with the economy industry but today operates as a Software $8.5 The Manhattan-based compa- tanking, consumers might be drift- much smaller company. In 1985, Axiom Legal Solutions Consulting $8.0 ny, which will officially report its ing away from more expensive corporate raider Ronald Perelman earnings on Thursday, chalked up brands to offerings from middle- took over the firm in a highly lever- TechnoSpin Wind energy $8.0

the gains largely to increased sales market players like Revlon. See REVLON on Page 8 istockphoto

July 28, 2008 | Crain’s New York Business | 3 CNYB 07-28-08 A 4 7/25/2008 8:19 PM Page 1

IN THE MARKETS HIGHLIGHTS REEL Tough times put shine +0.7% on old-line manufacturer The Bloomberg/ old company posted net income of $49 $600 million of orders for reactor coolant Crain’s New Profit growth makes million, or $1.08 a share, on revenue of pumps in recent quarters and is likely to York Index Curtiss-Wright shares $887 million, compared with per-share get more orders, with China, India and rose 0.7% to income of 91 cents on the United Kingdom end the attractive; acquisitions revenue of $698 mil- planning to construct week at ➡ lion in the year-earli- plants. 309. The help to power sales er period. The 27% The company de- S&P 500 sales increase was rives about $60 mil- Index fell BY AARON ELSTEIN driven largely by ac- lion in revenues from 0.2%, quisitions, including each reactor, but Mr. closing at n times like these, shares of a last year’s $103 mil- Levenson estimates 1258. traditional manufacturer with lion deal for a valve that figure could near- growing earnings and cash flow producer. But man- ly double as it adds start to look awfully appealing. agement notes that, new features to its of- RISERS Such is the case with Curtiss- even excluding the ferings for such plants. 5-DAY 1-MONTH 3-MONTH CLOSING Wright Corp., the recession-resistant purchases, revenues % CHANGE % CHANGE % CHANGE PRICE I Defensive play maker of valves, pumps and other parts grew a respectable Martha Stewart +21.9% +0.1% -3.8% $7.80 used in everything from airplanes and 11%. curtiss-wright is JetBlue +19.4% +33.3% +0.6% $5.04 submarines to oil refineries. Prospects are also growing its de- Analysts forecast 15% earnings growth brightest in energy, fense business, which Hertz +12.5% -19.9% -31.4% $8.40 for Curtiss-Wright this year and next, so which contributes already accounts for G-III Apparel +10.3% +27.2% +16.6% $16.65 now is a good time to stock up.Trading at 30% of revenues. As a Market cap $2.3 billion about 40% of revenue. Medco Health +9.6% +6.8% -2.9% $49.53 more than 16 times next year’s expected big supplier of safety 2009 estimated P/E 16.7 The company is mov- earnings, shares of the Roseland, N.J., valves for oil refiner- Total debt $550 million ing beyond its roots as company aren’t cheap—but they are com- ies, Curtiss-Wright is a supplier to the U.S. SINKERS pelling as banks fight to stay solvent, and benefiting from the Navy. Last month, it 5-DAY 1-MONTH 3-MONTH CLOSING retailers and automakers struggle to avoid energy production landed a $39 million % CHANGE % CHANGE % CHANGE PRICE a trip to bankruptcy court. boom. Working with Brazilian oil giant contract to help make mortar and missile E*Trade -15.6% -9.9% -22.8% $3.09 Petrobras, it recently developed a new launchers for the South African army. In American Express -13.2% -10.6% -23.3% $36.62 Long-term winner pump for deep-sea rigs. addition the company recently won a “curtiss-wright is a good long-term contract to help build a helicopter land- NY Comm. Bancorp -12.0% -15.9% -15.5% $16.21 The biggest opportunities lie in nu- vehicle,” Stifel Nicolaus analyst Stephen clear energy. Utilities are eager to extend ing system for two European frigates, Merrill Lynch -11.0% -22.4% -44.6% $27.52 Levenson wrote in a recent report. He the lives of their reactors and are contem- with an option to work on eight more. Lehman Brothers -10.8% -30.9% -63.6% $17.05 pegs the shares’ value at $60. plating building the first new ones in 30 For the first half of 2008,the 79-year- years. Curtiss-Wright has booked nearly COMMENTS? [email protected]

STOCKS TO WATCH by Erik Ipsen After huge run-up, even MasterCard shares begin to feel the sting of cooling economy MASTERCARD is in a great business. It merely processes transactions and isn’t on the hook if cardholders can’t actually pay for the stuff they buy. But signs are mounting that the slowdown is spreading to Europe, where the plastic kingpin has been growing the most. Sure, MasterCard is expected to post a 41% surge in earnings this week, but profit growth is slowing— dangerous for a company whose shares have soared 64% in the past year. Next week Maidenform is expected to post a 27% falloff in second-quarter profits, nearly triple the drop of the first quarter. Yet the stock is up 17% this year. Launches of the Ultimate Gel Pushup and the Every Bit Invisible bras could lift Maidenform’s results, as could adding DKNY’s intimates to the lineup, but that remains to be seen. On the other hand, the shares trade at 12 times earnings, which means they’re a relatively cheap bet that sex sells. Lazard is on a surprising roll. Its shares are up 10% in the past month. Mergers and acquisitions, where Lazard makes most of its dough, is off 50%, but the firm managed to land a spot helping InBev with its $50 billion purchase of Budweiser. Then there’s advisory work, such as helping UBS decide whether to dump PaineWebber, the brokerage that Lazard helped it buy in 2000 for $10 billion. charts: lindström bekka

4 | Crain’s New York Business | July 28, 2008 Project6 6/6/08 12:20 PM Page 1

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Amazin’ suites almost outta here he mets’ resurgence put them in first place going into their weekend Tseries against the St. Louis Cardinals. Sales of the luxury suites at the Mets’ new stadium, Citi Field, are also sizzling. Forty- eight of 49 are sold, and a list of 12 hopefuls are vying for the last one. The suites go for $250,000 to $500,000 a year, with leases running from three to 10 years. Citi Field opens next season. “We’ve done very well, which might suggest we priced the suites low,” says Dave Howard, executive vice president of the Mets.“They are tremendous

quality in terms of fit out, size and sight lines.” landov They’re an outright bargain compared with suites at the new Yankee Stadium, which will run from $600,000 to $850,000. Selling the 45 luxury boxes at Shea Stadium, which are mostly in the outfield, had its challenges. All the new suites will be within the infield—including the few “Sterling” ones, which are just two rows from the field.The high demand might spur the team to convert five single-game party suites into full-season rentals, Mr. Howard says.

the big draw.” Rob Weisbach, former president of Rising star Weinstein Books, in his first foray for hip hotels Auction gets as an agent. hip hotelier Ian Schrager (below, publishers going right) and stodgy Marriott Catch a train, International have chosen a rising the publishing industry shook change providers star in the off its seasonal doldrums last week Marriott when HarperCollins’ Ecco imprint let the cable television wars organization won a heated auction for true-life begin.Today, 12 days after to lead their survival tale Crazy for the Storm. receiving the official go-ahead to Long established joint Industry sources say the sell TV in the five boroughs, Verizon venture, memoir by first-time author Communications Inc. is hosting a FiOS b l commitment o Norman Ollestad TV boutique o sold for between kickoff at Grand Central m be hotel chain rg $1.5 million and $2 million. Terminal. About 80 Verizon Edition. news The book begins in 1979 after employees are canvassing the Ritz-Carlton executive Daniel a private plane crashed in the San transportation hub, distributing Flannery (below, left) will move Gabriel Mountains of Southern promotional materials and into the managing director role California.The pilot and Mr. encouraging commuters to sign up. Weiser LLP Certified Public Accountants toward the end of this year. Ollestad’s father were killed, and “We want to meet and greet as “I’ll be traveling a lot,” says the 11-year-old had to make his many people as possible,” says a to the Mr. Flannery, 45, who will be way out alone. company spokesman, adding that New York City New York overseeing the opening of The book also describes the similar events will be held around 135 West 50th Street Editions worldwide. The list of author’s subsequent life as a surfer the city as Verizon promotes New York, NY 10020 real estate community locations includes Los Angeles and skateboarder and his run-ins FiOS TV. Tel 212.812.7000 Fax 212.375.6888 Weiser's Real Estate Services Group and Paris, with the first hotels with his mother’s abusive Disgruntled Time Warner provides personalized service and technical expected to open in 2010. boyfriend. Cable and Cablevision Systems Long Island expertise to real estate developers, owners, Mr. Schrager, “It was pitched as Into the Wild Corp. subscribers shouldn’t get too 3000 Marcus Avenue managers, and investors. Lake Success, NY 11042 one of the meets The Great Santini meets excited just yet.The service will Tel 516.488.1200 Our services include: impresarios This Boy’s Life,” says a publishing initially be available only in select Fax 516.488.1238 • Tax planning and compliance behind executive, referring to nonfiction neighborhoods. Jon Krakauer Pat • Accounting and auditing Studio 54, best-sellers by , Westchester Conroy Tobias Wolff 660 White Plains Road • Cost segregation studies made a and . Contributors: Lisa Fickenscher, Matthew d a Suite 430 v name in the Mr. Ollestad was represented by Flamm, Amanda Fung, Daniel Massey • Valuations id Tarrytown, NY 10591 n • Due diligence and litigation support eff 1980s as the Tel 914.333.0555 creator of trendy Fax 914.333.0556 • Low income housing tax credits • Management advisory services properties like Morgans and SUPPLY-DEMAND TURNAROUND New Jersey • Financial, economic, and market Delano—a market segment that 399 Thornall Street Though vacancy rates have risen among rental apartments this month, rents have risk analyses has eluded Marriott.The remained stable overall. Certain neighborhoods, including the financial district, Edison, NJ 08837 hospitality giant is hoping that Tel 732.549.2800 We work together with our clients to have actually seen increases despite the rising inventory, according to The Real Fax 732.549.2898 Mr. Schrager’s Midas touch will Estate Group New York. develop customized and integrated work for them. solutions to help them reach their goals. Doorman buildings Average rents % change www.weiserLLP.com “Financing is so tight in the industry, but there are Studios $2,648 -1.5% For more information, contact people stepping forward who 1-bedrooms $3,825 -0.5% Michael Zivotovsky or Ron Katz at 212.812.7000. say they want to do deals with 2-bedrooms $5,769 +0.1%

us,” Mr. Flannery says. “Ian is istockphotos

6 | Crain’s New York Business | July 28, 2008 Project4 7/18/08 5:14 PM Page 1

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emblemhealth.com CNYB 07-28-08 A 8 7/25/2008 8:19 PM Page 1

NYC’S OLYMPIANS

ther, David. “They got into other Center on West 39th Street, attract things in the city.” some of the world’s top coaches and No spotlight for local athletes Not surprisingly, these young competitors. A handful of local col- competitors say the city’s toughness leges, such as St. John’s University Continued from Page 1 likely travel to China alone because old boxer from Bedford-Stuyvesant, plays a part in their success. and New York University, boast That’s especially true for those com- his mother, whom he calls his has an entourage of Brooklyn fans “The pace of life in New York renowned fencing programs. peting in less popular events. While “biggest fan” and public relations who follow him to all his bouts. makes you a harder worker,” Mr. All of the international fencers other places send their Olympians manager, can’t afford to go. Mr. Ali, known locally as the Williams-Murray says. training in New York “make our de- off as celebrities, featuring them in “I’m in an obscure sport in a city “Canarsie Kid,”is a two-time Gold- Steeplechaser Anthony Famigli- velopment program the best in the parades and ribbon-cuttings, com- en Gloves winner heading to his etti,29,of Manhattan,thinks of New world,” says Keeth Smart, 29, of petitors from New York are over- first Olympics.A son of Yemeni im- York as the ultimate testing ground. Brooklyn. He and his sister Erinn shadowed by professional athletes, ‘It’s difficult migrants, he is also the first Arab- Smart, 28, are both competing in movie stars and business tycoons— American to represent the United Fencing mecca Beijing. who are also locals. to get the States at the games. “i challenge myself in a way, to “In New York, you’re used to the “We’ll do something for them “If we were in a smaller town, prove that if I can make it here as an hustle and bustle, so it’s never a when they get back,” says a recognition Sadam would have gotten the key to athlete I can make it in anything,” shock to have to deal with different spokesman for Mayor Michael the city by now,” says Joe Higgins, says Mr. Famiglietti, who often types of people and situations,” Ms. Bloomberg. “Especially if someone you deserve’ president of USA Boxing-Metro, trains in Central Park and has Smart says. wins something.” the local chapter of the amateur clocked some of the fastest times in “My first few trips to Europe, I boxing association. his event in U.S. history. was with a girl from Minnesota,”she Fundraising woes New York City’s many distrac- In at least one Olympic sport, adds.“She wasn’t used to even trying missing out on local attention of- tions can also derail some Olympic however, New York City makes different types of food and was just ten deprives New York’s Olympians like New York,” Mr. Williams- hopefuls. training easier. overwhelmed by a lot of things.New of fundraising opportunities. Murray says.“It’s difficult to get the One by one, the group of young For the past two decades, fencers York makes you open to differences.” Taraje Williams-Murray,the 23- recognition you deserve.” boxers Mr. Ali started out with have have flocked to the Big Apple to year-old judo champion and Bronx In the absence of a citywide ef- dropped out. sharpen their skills, making it the COMMENTS? native, could have benefited from a fort, the neighborhood rally ma- “A lot of friends who trained with sport’s global hub.Prestigious clubs, [email protected] or photo-op at City Hall.He will most chines kick in.Sadam Ali,a 19-year- him ended up quitting,” says his fa- including the Manhattan Fencing [email protected]

tel, deluxe ground transportation, $550 to $2,000 a night charged by decent seats at top events, first-class five-star hotels in the capital. Still, NY executives shilling for gold airfare and all the Veuve Cliquot and she says,it’s worth the expense to im- Rémy Martin clients can swill, costs press her guests with the possibilities Continued from Page 2 close are former AIG Chairman man rights record, its crackdown on about $10,000 a person. Given that of event sponsorships. to consumer-goods companies Hank Greenberg and, of course, ex- protests in Tibet and its strict press the average group is 30-40 people, “Even if we can’t get into the showing off their latest wares to po- ecutives from NBC, the company restrictions during the games make that adds up.One Manhattan-based games, there are tons of events tential buyers, hundreds of New supplying the U.S. team’s uniforms. this year’s Olympics unusually con- corporation plans to send 200 peo- around them that will give my York executives will be shilling for The Big Four accounting firms will troversial. ple,at a total cost of about $2 million. clients a sense of what it’s like to get their own Olympic gold. also be on hand, including Deloitte In addition, many companies out there in front of the masses,”says “Everyone wants to be there,”says & Touche and Ernst & Young, both don’t want to be seen as living it up Gymnastics too pricey Ms. Mays. Robert Tuchman, president of Pre- of which boast large China prac- in China while stateside people are kisha mays, president of Glow In- International Baseball’s Mr. miere Corporate Events, a hospitali- tices. They will be joined by execu- losing their homes and the markets ternational Group, a metro area Schiller doesn’t need that education. ty agency in midtown that’s handling tives from technology and pharma- are in turmoil. Visa headaches and branding and sponsorship consult- As a former executive director of the travel and entertainment for about ceutical companies including heavy-handed security measures, ant, is spending about $100,000 to U.S.Olympic Committee,he is well 350 executives in Beijing next month. Johnson & Johnson, and by others along with concerns about poor air bring eight potential clients to Chi- aware of the immense power of the Recent NBC broadcasts of from a slew of promotion compa- quality in the Chinese capital, are na on a four-day junket to demon- games. Olympic trials have helped fuel a nies.All of them will be paying dear- also curbing the enthusiasm of some strate the benefits of games spon- That’s why, when he is not pitch- last-minute surge in interest. Mr. ly to fly 18 hours to watch every- attendees. sorship. She’d love to check out the ing baseball, he will be plugging his Tuchman reports that the number thing from archery to diving—and “Corporations have learned to be gymnastics events, but, at about other business, GlobalOptions of bookings for the Olympics are to squeeze in a few parties. gun-shy about anything involving $400 a pop, she is giving the parallel Group. The Manhattan-based firm now three times the number for the lavish expenditures,” says Steve bars and rings a pass. handles security for sports and enter- past summer Olympics, in Athens. Reasons to be shy Hacker, president of the Interna- Instead,she says she will settle for tainment events around the world. “This is going to be the biggest but many of those making the tional Association for Exposition “stuff like the shot put.” By making “These international trips open a summer games since Atlanta,” he trip are surprisingly reluctant to talk Management. her reservations a year in advance,she lot of doors,” he says. says. about it all.Several New Yorkers de- A typical package booked has been able to hold her costs down. Among the New York luminar- clined to talk on the record about through Premiere, for example, in- Her rooms at the Beijing Hyatt, for COMMENTS? ies expected to see the games up their plans. China’s checkered hu- cluding five nights at a five-star ho- example, will cost a fraction of the [email protected]

global industry beauty analyst at NPD. “But they Revlon tries to regain old luster have limited display space at retailers such as Wal- Continued from Page 3 who is now chief executive of Mirror still struggling, and their balance Mart and Kmart, which aged buyout. Eleven years later, Mirror Imagination Group, a com- sheet is very constrained.” can limit growth.” Revlon went public again, but in pany that forecasts beauty trends. “Revlon has been suffering for a that time it suffered steady losses, “They’ve got commercial actresses long time,” says Carrie Mellage, di- Missed opportunity went through several chief execu- in their ads like Jessica Alba, and rector of consumer products for the another area cited by tives and had product misfires. Its they’ve modernized their packaging. Kline Group, a marketing and re- Ms. Mellage as a missed shares, which traded near $50 a Those things matter.” search firm. “I haven’t seen them as opportunity was interna- decade ago, are now valued at $1. Revlon also has new managers in a healthy company in the past 10 tional expansion. “They One of Revlon’s most embarrass- place. Chief Executive David years. Though their total corporate should be exploring more ing misadventures was Vital Radi- Kennedy and Chief Financial Offi- sales have been growing about 5% opportunities internation- ance, a cosmetics line introduced in cer Alan Ennis are trying to estab- per year since 2002, profit is where ally, where the consumers January 2006 and aimed at older lish a financial discipline that was they’re struggling.” very much want foreign women. Sales were disappointing, lacking in the past, and world- Ms. Mellage says that Procter & brands,” she says. and by the time the company pulled renowned makeup artist Gucci Gamble and L’Oréal, each have Above all else, the com- the plug less than a year later, it had Westman was hired as the brand’s strong relationships with con- pany has to prove it can turn lost more than $70 million and was global artistic director. sumers. Revlon doesn’t have that. in positive results over time,

forced to lay off nearly 10% of its But for the most part, the indus- Plus,the company has had six major lindström bekka experts note.“Revlon’s sud- U.S. workforce. Revlon declined to try is skeptical.“They’re trying to re- leadership changes during the past den surge in positive earn- be interviewed for this story. vitalize the two main brands, decade. But less than 30% of those people ings is encouraging,” Ms. Recckio Some experts believe Revlon still Revlon first, and then Almay,rather were willing to convert to Revlon, says,“but as trend trackers and fore- has the ability to shake up the mar- than reach new customers, which Space limits compared with 50% willing to casters know,it’s the long-term con- ket.“Their mineral makeup and self- was the goal of Vital Radiance a few npd group’s Makeup In-depth switch to Cover Girl and May- sistent growth that’s key to big turn- adjustable foundation are doing ex- years ago,” says Connie Maneaty,an Consumer Report for April showed belline. “In terms of recognition, arounds.” tremely well,” says Jeanine Recckio, analyst and director at BMO Capi- that 88% of 6,000 respondents 88% is still a high number,” says a former lipstick designer for Revlon tal Markets. “But the company is were aware of the Revlon brand. Karen Grant, a vice president and COMMENTS? [email protected]

8 | Crain’s New York Business | July 28, 2008 CNYB 07-28-08 A 9 7/25/2008 2:45 PM Page 1

NEIGHBORHOOD JOURNAL Fabled S.I. ice cream parlor brought back from the dead

peak summer temperatures. moved, the spotlight will again be High-calorie favorite Borough President James Moli- on Sedutto’s high-fat, premium ice to get fresh focus; naro, a longtime patron, is among cream. those rejoicing at the news.“The ex- only the beginning? citement of going to Sedutto’s was No more pizza great,” Mr. Molinaro says, recalling “we are in the ice cream business trips with his children. “You’d think because we’re ice cream people,”Mr. BY MATTHEW SOLLARS we were going to Disneyland.” Glynn says. “We don’t know any- Founded in Manhattan nearly a thing about making pizza.” GRAB A COLD ONE: taten islanders’ cher- century ago, Sedutto Ice Cream Co. He is confident that the recon- The new Sedutto ished links with a rich and decamped for Staten Island in the figured location will be profitable, will concentrate on creamy past are being re- 1930s. Production was moved to and he notes that about 50 stores its core product. forged. The borough’s last Michigan in the 1990s. throughout the five boroughs carry Sedutto ice cream parlor, Leo Glynn,co-owner of Big Ap- Sedutto products. Swhich closed this spring after serv- ple Dairy Desserts, which bought Mr. Molinaro hopes that the he says would be a great opportuni- foods—that they shouldn’t eat but ing generations of residents, is be- the Sedutto brand in 2006, says the shop will be just the beginning of a ty for the new owners to give visitors that we eat here on Staten Island,” ing revamped. The store, in the store had become a pizza joint and Sedutto renaissance on the island. a taste of the borough. Mr. Molinaro says. same New Dorp spot,is expected to deli that happened to serve ice He has already found a prime spot in “It could really expose the open on Aug. 1—just in time for cream. With those distractions re- the St. George Ferry Terminal that tourists to all the fats—all the COMMENTS? [email protected]

what amounts to a no-confidence Some investors, however, argue Futures broker’s CEO under fire vote. Many angry shareholders vow that this is no time to ditch the man to balk at voting to re-elect him to the who has led MF Global since 1999, board—a major snub.Others want to and who until recently has done so Continued from Page 1 two days. after the company warned that fi- go further and press for his ouster. successfully. They believe the firm’s tan-based MF Global,and who reg- Over the next two months, wor- nancial-market turmoil would Glass Lewis & Co.,which advis- problems are past and argue that it ularly criticizes Mr. Davis on his ried U.S. clients yanked $3.5 billion cause a sharp decline in interest in- es big investors on board votes, re- stands to benefit from all the action blog, Naked Shorts. out of MF Global, according to J.P. come for the second quarter. cently recommended that share- in the commodities markets. Such sentiment represents a sea Morgan research. For fiscal 2008, “What we thought was a recov- holders withhold their votes not just change from the atmosphere sur- which ended March 31, the compa- ery story turned out to be a destabi- for Mr.Davis,but also for Chairman Powerful new investor rounding the company last summer, ny swung to a $70 million loss—al- lizing business,” wrote J.P. Morgan Alison Carnwath and another di- in addition, Mr. Davis has hired a when it was spun off from its parent, though revenues held steady. analyst Kenneth Worthington in a rector as well. new chief financial officer and man- London’s Man Group. Back then, it That marked a stunning reversal blistering client report earlier this Such abstentions are a common aged to land a highly regarded new raised $3 billion in an initial public of fate for the company, which has month. He said the earnings deteri- way for shareholders, who lack an shareholder, J.C. Flowers & Co., offering—the second largest for a 3,400 employees, including 400 in oration “brought management’s alternative candidate, to voice their which earlier this decade helped turn broker in Wall Street history. At the New York, and ranks as the busiest credibility into question.” displeasure. Withholding 25% of around a struggling Japanese bank. time,MF Global was seen as a leader trader on both the New York Mer- votes for a director sends a strong “MF Global is doing all the right in one of Wall Street’s hottest busi- cantile Exchange and the Chicago Expensive refinancing message of dissatisfaction to the rest things,” says a large shareholder. nesses, brokering futures trades for Mercantile Exchange. As money adding to its problems, the firm of the board, says Bruce Goldfarb, In the meantime, the firm seems commodities from crude oil to corn. gushed into the red-hot commodi- had to refinance a $1.4 billion short- chief executive of proxy adviser to be tightening the leash on Mr. Since then, however, little has ties arena in the company’s 2007 fis- term loan it took out around the Okapi Partners. MF Global de- Davis ever so slightly. MF Global gone right. Serious trouble first cal year,revenues more than doubled, time of its IPO. With business un- clined to comment. said last month that it would cut his erupted in February,when the com- to $6.1 billion. Net income more der pressure and investors nervous Some shareholders, who de- annual car-and-driver allowance to pany revealed that a rogue trader lost than tripled, hitting $188 million. about Wall Street firms in general, clined to speak publicly,say that Mr. $75,000,a nearly $30,000 reduction. $141 million by making massively Though MF Global moved ag- management had to pay dearly to re- Davis should be replaced by Bernard Mr. Newton quips, “Let’s all misguided bets on the price of gressively to fix the mess following finance the debt. Dan, a former chief executive of the pitch in and send Davis a Metro- wheat. In response to what was seen February’s surprise loss, its shares Against that ugly backdrop, Mr. Chicago Board of Trade who joined Card.” as a stunning failure in supervision, remained vulnerable. On a single Davis will be fighting for his profes- MF Global last month as chief op- the firm’s stock plunged 40% over day last month, they plunged 41% sional life in Bermuda,where he faces erating officer for North America. COMMENTS? [email protected]

damaging to the psyche of this city.” that the plan would have generated However, the Second Avenue annually is a fraction of what the MTA shortfall presents dilemma work is $1.3 billion short of what is MTA says it needs.Even if the busi- required for just the first of four ness world lobbies again for driving Continued from Page 1 fares and mo- phases. East Side Access needs $2.8 fees in a year or two, as many expect, backs in the transportation build- PITCHING IN torists’ fees. billion more. Rising costs will force it will still face calls for higher taxes. out. One possibility is postponing The idea of the MTA to defer nearly $3 billion “The biggest contribution is go- East Side Access—a project to bring Revenue sources for the MTA’s projected $10 billion 2009 budget: suspending worth of work in the current capital ing to have to come from the Long Island Rail Road trains to Dollar amount, the East Side plan to the one beginning in 2009, wealthiest New Yorkers,” declares Grand Central Terminal—and Sec- Source in billions Share of total and Second and they also have wreaked havoc Dan Cantor, executive director of ond Avenue subway construction. Fares $4.2 42% Avenue proj- with the operating budget. the progressive Working Families While those two megaprojects ects is unfath- Party. “There’ll be some [business- would benefit business, they would Dedicated taxes* $3.2 31% omable to the A cry for help people] who say we can’t do that. cost a whopping $15 billion, notes Tolls $1.3 13% MTA. “it’s a huge political lift to fund The business community is very Kathryn Wylde, president of the State/local subsidies $0.9 9% “We’ve ad- both the MTA’s operating and cap- powerful; they have a lot of dough, Partnership for New York City, vanced them ital needs,” Mr. Sander admits. and they’re not afraid to throw it whose members include some of the Other $0.5 5% largely on fed- “However, the alternative—which around.” *Includes special state taxes imposed in the MTA district, petroleum and motor vehicle city’s major employers. taxes, and real estate taxes on certain NYC commercial property transactions. eral money, is essentially to walk away from the But Mr. Cantor’s union-backed Source: Metropolitan Transportation Authority and [if they MTA—puts us on a clear path to- party has influence as well, and it’s New priorities are stopped,] ward the demise of this region from likely to rally voters and pressure “the business community puts a we would an economic, social and quality-of- elected officials. premium on funding for mass tran- not be the same ones we would pri- have to pay the federal government life perspective.” “We’ll be doing a lot,” he prom- sit, but there is a need for a careful oritize today.” back,” says Elliot Sander, the His dire words echo a growing ises.“I’m looking at a strategy memo review and rethinking of mass-tran- The Citizens Budget Commis- agency’s chief executive. Moreover, cry among transit advocates for help right now.” sit investment priorities,” Ms. sion, a business-oriented watchdog he adds, “The impact of walking from corporate New York. The two Wylde says.“Projects that have been group, also may support pushing away from these projects when their forces united last year behind con- COMMENTS? on the board for 20 or 40 years may back some projects while hiking completion is in sight would be gestion pricing,but the $500 million [email protected]

July 28, 2008 | Crain’s New York Business | 9 CNYB 07-28-08 A 10 7/24/2008 7:07 PM Page 1

VIEWPOINT MTA hike: tip of fiscal iceberg editor in chief Rance Crain publisher, vp Jill R. Kaplan

he news that the Metropolitan factors: the rapid decline in real estate transfer tax EDITORIAL Transportation Authority wants an 8% collections, which in recent years added about $1 billion a editor Greg David managing editor Robert Hordt hike in transit fares—some 16 months year to the agency’s coffers; soaring fuel costs; and sharp deputy managing editors Valerie Block, after the last increase—was greeted with a increases in interest on the debt that the MTA issued to pay Erik Ipsen contributing editors chorus of catcalls and demands that the for its capital plan over the past decade. Frederick P. Gabriel Jr., Elizabeth MacBride mayor and governor find some way to hold Neither the mayor nor the governor can revive the columnist Alair Townsend senior reporters Theresa Agovino, the line. No one wants a fare hike, but housing boom, lower oil prices or defer debt obligations. Aaron Elstein, Erik Engquist, Lisa Fickenscher, before the chorus reaches a crescendo, New Yorkers need to They could give the MTA more money. But the 8% fare Matthew Flamm, Samantha Marshall, take note of two other, equally bleak announcements made hike assumes more operating help from the city and the state, Miriam Kreinin Souccar T reporters Barbara Benson, Amanda Fung, last week and the implications for their pocketbooks. which leads to the question of where they would find the Daniel Massey, Adrianne Pasquarelli, The Financial Control Board forecast that the meltdown on funds. Facing huge budget deficits, should they cut spending Hilary Potkewitz, Gale Scott, Matthew Sollars restaurant critic Bob Lape Wall Street will be so severe that the city’s budget deficits will on other areas—say, art director Steven Krupinski widen to more than $4 billion in fiscal 2010 and $7.5 billion in education? Probably deputy art directors Carolyn McClain, Where would the Daniel Mednick the following year.The total is more than $2 billion higher not. Raise taxes? That staff photographer Buck Ennis than the Bloomberg administration’s projection, but the mayor city and the wouldn’t help hard- copy desk chief Wendy Zuckerman copy editors Michele Arboit, said last week that the FCB guess was probably accurate. state find the pressed New Yorkers. Thaddeus Rutkowski Gov. David Paterson reiterated that the state budget By the way, don’t research editor Denise Southwood www.crainsnewyork.com picture is just as bleak. Officially, the state says it is looking at funds to help? assume that the rich can web producers Kira Bindrim, a $5 billion gap in the next year, but that forecast was made make the MTA,the Elisabeth Butler Cordova in April, before the dimensions of Wall Street’s problems state and the city whole. EDITORIAL AND ADVERTISING OFFICES became clear. If the FCB is right about the city’s finances, Raising state income 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 the state budget deficit could easily double to $10 billion, taxes on those who advertising: 212.210.0259 Cable craincom nyk since the city’s securities industry accounts for one-fifth of make more than $1 million can generate only about $1 Fax 212.210.0499 state revenues (compared with 9% for the city). billion, and a similar city tax would yield far less. Entire contents ©copyright 2008 Crain Communications Inc. All rights reserved. Two conclusions are obvious. A decision on the MTA fare The loudest call last week was for the MTA to find ways ®CityBusiness is a registered trademark of MCP hike is only the first of a series of painful choices that must to cut costs to avoid a fare hike.That’s reasonable, and the Inc., used under license agreement. be made as the city and state confront their fiscal problems. city and the state should take the same approach. TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. Saving the fare might not keep money in anyone’s wallet. $3.00 a copy, $59.79 one year, $109.79 two years. www.crainsnewyork.com Why? The MTA’s fiscal squeeze is the result of three COMMENTS? [email protected] ADVERTISING AND MARKETING advertising director Jeff Adler senior account manager William E. Squitieri LETTERS TO THE EDITOR account executives Irene Irvill, Courtney McCombs, Anthony Mowad western account manager Ellen Mazen (Los Angeles) 323.370.2477 sales manager, classified City doesn’t need Wal-Martization print & online John Gallagher newsletter product manager Catherine Evans Gittens LOSING PROPOSITION community has the right to development and how it benefits not billions, of dollars each year to sales coordinator, print & online FOR WORKERS, TAXPAYERS expect merchants to assure a workers and their communities. the city’s economy. Destroy the Lulé Haznedari middle-class standard of living stuart appelbaum fabric, and you will kill the goose sales coordinator Anita Perrino credit Todd J. Masura 313.446.6097 alair townsend’s July 14 for workers and their families. President that lays that golden egg. marketing director Amy Crossman column, “Union demands will cost The Bloomberg administration is Retail, Wholesale and Department The building that St. Vincent’s marketing manager Jill H. Bottomley city,” seems bent on promoting the smartly ensuring that the Store Union wants to demolish to build its new marketing coordinator Jenny Mashberg Wal-Martization of tower is of major historical impor- circulation manager Andrea Richardson New York City. tance—it was the headquarters of assistant circulation manager LESS DESTRUCTIVE PLAN Rosalie Ford Conveniently, she FOR ST. VINCENT’S the National Maritime Union, ignores the facts. whose seamen helped build New general manager, interactive Large retailers that crain’s july 21 editorial, “Let St. York into what it is today. If it is Marc Minardo pay poverty wages, Vincent’s plan proceed,” mischar- lost, many other cultural and his- NEW YORK PRODUCTION demand tax subsidies, acterizes those who oppose the toric resources will follow. production and pre-press director offer inadequate health current Rudin-St. Vincent’s Hos- St. Vincent’s has alternatives, Michael Corsi care and inferior pital plans and ignores the most including modernization of the advertising production manager retirement plans—if compelling economic factor of all. buildings it intends to sell to the Marilyn DeMilta any—are a losing Protect the Village Historic Rudins and a second site it owns PUBLISHED BY CRAIN COMMUNICATIONS INC. proposition for District and its 900 members sup- two blocks to the north. There is chairman Keith E. Crain workers and taxpayers port a modernized hospital, but not no question of survival; all that is president Rance Crain alike. For example, it is at the cost of Greenwich Village. in play is money. secretary Merrilee Crain common for Wal-Mart Because of its unique history brenda murad treasurer Mary Kay Crain executive vp, operations William Morrow to direct its employees and architecture, the Village con- Member senior vp, group publisher Gloria Scoby to taxpayer-financed tributes hundreds of millions, if Protect the Village Historic District group vp, technology, circulation, child health insurance manufacturing Robert C. Adams programs. In other words, Wal- development at Willets Point will vice president/production & Mart, one of the world’s include policies that require manufacturing David Kamis wealthiest corporations, looks to higher standards, create real WHAT’S COMING UP IN CRAIN’S? chief information officer Paul Dalpiaz corporate circulation director taxpayers to pick up part of the tab opportunities and encourage Business Patrick Sheposh for their labor costs. That’s hardly businesses to invest in their Small Business the kind of employer New York workforce. The true legacy of the of sports business of green founder G.D. Crain Jr. (1885-1973) Mrs. G.D. Crain Jr. City needs. Bloomberg administration will report awards report chairman (1911-1996) As New York’s retail sector not be economic development in August 4 August 11 August 18 continues to grow and profit, our itself—but the nature of that

10 | Crain’s New York Business | July 28, 2008 CNYB 07-28-08 A 11 7/25/2008 1:47 PM Page 1

Companies large and small rely on Amper, and ploded,generating even more royal- you can too. ties for songwriters and publishers. And while the record industry allowed technology to eat its lunch, the performing rights societies have embraced change and followed the money. “We don’t allow ourselves to become complacent,” says Mr. Cody. “We have to have vision and a good sense of where the future is going and make sure our infrastructure is there to support it.” This is a real relief for songwriters and publishers, who are the sole beneficiaries of performance royalties and who have seen their in- comes from record sales collapse in recent years. Performing artists are not covered by Ascap or BMI unless they are also songwriters, à la Ray Charles or Coldplay. Once, the performing rights societies got 100% of their royalty revenues from traditional radio. But john h.john howard they’ve moved into new territory along with consumers,pressing new media like satellite radio and digital cable networks to sign licensing agreements for the rights to use Here’s something tunes. “Seeing Beyond the Numbers...” And the fees keep rising, which www.amper-pc.com Mr. Cody says is an indication that to sing about the value of music is rising, too. These nonprofits are tenacious, sometimes too much so. Like when he massive sales of rap star Lil Wayne’s Tha Ascap went after the Girl Scouts Carter III and British supergroup Coldplay’s Viva and the Boy Scouts for campfire song fees, creating a public relations La Vida can’t stop the music industry’s inexorable nightmare. decline. Record stores continue to close, record Mostly, though, they keep a low companies continue to struggle, and artists are in- profile. They lobby Congress to ex- creasingly jumping ship,hooking up with consumer brands that pand the parameters of copyright T law to include new media.They col- have the money to promote them. lect fees from restaurants, clubs and aerobic studios—after all,meals and But one little sector “There’s more mu- a rousing round of exercise go better We are pleased to have represented of the industry is mak- sic than ever being with mood music. ing out just fine, thank played in more ways And they don’t care who pro- you. The associations than ever,” says John duces the music, whether it’s RCA that collect performance Cody, chief operating Records or Axe Deodorant. They royalties for songwriters officer of BMI. don’t care if the songs are played on and publishers are rak- How can this be? the radio, as a ring-back tone or on ing in more money than The music business is American Idol. ever for their members. radioactive, right? They just keep on collecting BMI is set to announce Well, the business is those fees for their members—in- its biggest fiscal year bad,but American mu- cluding me. For the sake of full dis- ever at the end of this VALERIE sic is more popular than closure, I’m a former songwriter month. That comes af- BLOCK ever—it’s increasingly signed to BMI. For those who gen- in its 34,568-SF lease ter a 33% rise in revenue heard in commercials, erate great tunes, the big bucks will between 2003 and 2007 in video games and on keep on coming. to $840 million. Ascap reports sim- cell phones—here and abroad. Ur- COMMENTS? ilar good news each year. ban and Hispanic genres have ex- [email protected] to Littler Mendelson, P.C.

CRAIN’S ONLINE POLL at IS THE MTA JUSTIFIED IN SEEKING AN 8% FARE INCREASE? Number of respondents: 267 No. The MTA should cut 900 Third Avenue Date of poll: July 22 expenses and consider New York, NY layoffs, even if it means reducing service Yes. The rising price of . gasoline and falling revenue No. Fares just 25% from real estate taxes that Tara Stacom, Andrew Sachs and David E. Green represented went up in March, are helping to create the and working-class MTA’s deficits can’t be the landlord in lease negotiations. people can’t .54% controlled afford another 14%. hike Yes. The city and the state 7% also face budget shortfalls, . so there’s nowhere else to

bloomberg news turn to fill the budget gap

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

July 28, 2008 | Crain’s New York Business | 11 CNYB 07-28-08 A 12 7/25/2008 2:02 PM Page 1

loss of public space. But he agrees that the current REP. ANTHONY WEINER (below) is casting indoor mall needs to go. “No one is himself as a new, improved version of Mayor THE INSIDER saying the status quo is acceptable,” Michael Bloomberg as he intensifies his the councilman says. His vote is campaign to win the mayoral election. He has crucial because the rest of the 2009THE RACE TO SUCCEED by Erik Engquist and Matthew Sollars even come up with a clever way to address council generally defers to the local the mayor’s dim view of him, saying that when member on land-use decisions. Mr. Bloomberg looks back at a Weiner General Growth says the tower MIKE mayoralty, he will be pleased to see that his is needed to generate revenue for projects and policies have been continued. Tide may turn on Seaport plan the elements that locals want: a The new, improved congressman was on display last week at a Crain’s community center, a public market, Breakfast Forum, where he announced a strategy to increase job growth in the open space and possibly a school. he future of the South Street Seaport redevelopment boroughs outside Manhattan. His plan includes tax breaks, efforts to persuade plan has been clouded by sharply negative statements firms to relocate their operations in outer boroughs rather than the suburbs, from Alan Gerson, the local councilman, but the rhetoric Schick’s expertise and assistance for small businesses. T But the most noteworthy part of Mr. Weiner’s appearance was its tone. may be misleading. a valuable trait Gone was the harsh criticism he directed at Mr. Bloomberg during his 2005 There seems to be contrary to published reports, run against the mayor, who cannot seek re-election in 2009. In its place were strong sentiment for Gov. David Paterson intends to keep compliments and the mildest of rebukes, couched in a deferential voice. a deal in what may be Avi Schick as chairman of the Lower He said that “mistakes have been made” at the Department of Education, one of the last Manhattan Development Corp., citing three reorganizations by Chancellor Joel Klein. But he avoided specifics and said he would continue the Klein/Bloomberg reforms rather than projects to come says a source with knowledge of the governor’s intentions. Mr. “experiment any further.” before the City Schick has already announced that Instead of saying the mayor had deferred too much to Council during the he will leave his post at the Empire the state on Ground Zero and West Side development, Bloomberg State Development Corp. But Mr. Weiner simply said, “I would seek to be much more he has come to know lower active” on those and other projects. administration. Manhattan well, and Mr. Paterson At times, he presented himself as Bloomberg “We have ample sees value in keeping him at incarnate. He called himself “fiscally conservative” and “a time to work out a LMDC, the source says. pro-development kind of guy.” He said, “I appreciate the way concept and a vision,” Mayor Bloomberg governs—the way he leans into problems.” Mr. Gerson now says, adding that he, like Mayor Michael Quicker path The usually opinionated Mr. Weiner was also careful not to Bloomberg step on the toes of Rep. Charles Rangel , leaves office at the end of 2009 and would like to to street designs and Gov. David Paterson, declining to see a project approved by then. say if it’s fair that those well-off the city is weighing a new set of politicians occupy rent-regulated The developer, General Growth foot height of a proposed tower and street design guidelines that would apartments. He noted that he voted for Properties Inc., hopes to capitalize its inclusion of a boutique hotel, make installation of pedestrian- vacancy decontrol and said, “There are on the administration’s support to luxury hotel and catering hall. friendly elements, like curb reasonable restrictions you can put on rent complete the Ulurp review in “This comes across as an elite extensions, easier. regulation.” But he did not say what they were. October 2009, which would require privatization of what ought to be a The Department of Transportation

that the Department of City historic public space,” he says. He has developed a number of new buck ennis Planning certify a plan in March takes the somewhat unusual view street and traffic plans in Madison 2009. that replacing some of the seaport’s Square Park and other places requires special budgetary approval, account for 23.7% of the total money Mr. GersonCRAINS_06-16-08_ objects to unidata_Enterprise the 495- SLAs.airetail 6/5/2008 with 3:49:29 a hotel PM would represent a around the city. But each one and the city wants to streamline the he raised,” the spokesman declares. process. The incumbent’s own By adopting a series of fundraising shows a similar pattern: preapproved templates, the city The top 2% of his contributions could implement the designs account for 17.5% of what he’s Enterprise SLAs without getting capital funding. raised. Green study Maps pinpoint for middle market taking root downtown actions companies the city is set to launch a study assembly speaker Sheldon Silver of the green sector to determine (below) joined the digital age last how to direct investment in week—or at least his campaign Middle market companies are in a tough position. growing eco-friendly industries. did—by launching a Web site that The Economic Development Corp. is includes a Google map showing all The banks call you middle market—offering middle asking for proposals in September. of the goodies the speaker has market credit lines at middle market rates. But in the EDC hopes work on the study brought back to his district. information technology (IT) world, customers, will begin in November and plans But at least one item trading partners, and regulators expect you to operate to publish the results in spring highlighted on the map has raised 2009. the hackles of one of his primary like an enterprise—with all the costly network access, The agency says opportunities opponents. Challenger Paul Newell availability, backup, security, and application abound in the green business, but applauds Mr. Silver’s use of support that entails. the study will give a clear picture of technology, the sector’s “economic landscape” but says the We’d like to help you outmaneuver this situation. and how the city can best promote speaker has job and revenue growth. not played an active role in a CallCall uuss ttodayodayy—we’llwe’ll givegive you a campaign to complimentary network assessment, designed to Fundraising save a called to account downtown outline your company’s best bets Pathmark for service improvement and cost savings in a hotly contested supermarket. Democratic primary, State Sen. A Silver Martin Connor is trying to turn spokesman

We’re the brains behind New York’s best networks opponent Daniel Squadron’s strong counters that getty images fundraising into a liability—a the speaker held one of the first common tactic for candidates meetings to save the store. whose contributions are lagging. Meanwhile, Streetsblog, a transit Mr. Connor’s spokesman says advocacy site, is developing its own Mr. Squadron is trying to “buy an map of projects that don’t exist A Unity International Group Company election” with money from wealthy because Mr. Silver failed to pass www.UniDataIT.com [email protected] (718) 445-5600 (opt.2) donors outside the district.“The top congestion pricing.They plan to 2% of Squadron’s contributions call the new map “Pin It on Shelly.”

12 | Crain’s New York Business | July 28, 2008 Project6 7/1/08 5:37 PM Page 1 CNYB 07-28-08 A 14 7/23/2008 6:01 PM Page 1

EXPLORING CAREERS THE WEEKS AHEAD

GROUP SEEKS HOST BUSINESSES THIS WEEK’S EVENTS 919 Third Ave., 35th floor. Fee: $50 JULY 30 JULY 29 members, $100 nonmembers. New York Building Congress holds THE GREATER NEW YORK COUNCILS ’ Exploring program is seeking businesses New York Human Resources holds (212) 751-4691. breakfast forum with Deputy Mayor to host educational sessions offering high school students the opportunity to workshop on QuickBooks. 6 p.m. to JULY 29 Robert Lieber. 8 a.m. to 9:30 a.m., explore various industries and make better decisions about possible career 8:30 p.m., Sterling National Bank, 650 Small Business Tech Tutorials holds Hilton New York, 1335 Sixth Ave. Fee: choices. Fifth Ave. Fee: $39. Preregistration workshop on increasing your Web $70 members, $95 nonmembers. The Exploring program puts together groups of 15 to 25 students required. (917) 697-2063 or traffic with Google analytics. 6:30 p.m. (212) 481-9230. interested in specific fields. The student groups meet at the host businesses [email protected]. to 8:30 p.m., Hunter College, East JULY 31 JULY 29 after school for four or more sessions, learning about career ladders, Building, East 68th Street and UPworld.com and Oriented Business Brazilian-American Chamber of Lexington Avenue, 14th floor. Fee: Networking Group hold networking educational requirements, salaries and what people in their selected fields Commerce Inc. holds breakfast $20. (212) 650-0226 or reception. 7 p.m. to 9 p.m., Katra actually do. Businesses often arrange special projects for the students. program on Brazil’s midyear economic [email protected]. Lounge, 217 Bowery. Fee: $5 in Programs start throughout the year, and the timing is tailored to fit and investment outlook. 8 a.m. to JULY 30 advance, $10 at the door. business schedules. Participating organizations include Bloomberg LP, NYU 10 a.m., Debevoise & Plimpton, Brooklyn Chamber of Commerce holds [email protected]. Medical Center and Crain’s New York Business. For more information, please seminar on business basics. 1 p.m. to JULY 31 call Exploring Director Nicholas Bogeatjes at (212) 651-2808, or visit More meetings online at 2:30 p.m., Brooklyn Business Solutions TechExpo USA holds networking Center, 9 Bond St., fifth floor, Brooklyn. reception. 10 a.m. to 4 p.m., Hilton New www.nyexploring.org. www.crainsnewyork.com Click on “Events” Free. (718) 246-5219, ext. 2021, or York, 1335 Sixth Ave. Fee: $5. [email protected]. (212) 586-7000. JULY 31 Lower Manhattan Business Solutions Center holds seminar on promotional tools and techniques. 9 a.m. to 12 p.m., 79 John St., second-floor conference room. Free. (212) 618-8914 or [email protected]. JULY 31 Don’t Push Your Luck Business Network International Wall Street holds networking breakfast. 7 a.m. to 8:30 a.m., George’s Restaurant, 89 Greenwich St., second floor. Fee: With Your Push To Talk. $19. (212) 661-4590 or [email protected]. MAKE THE SWITCH TO VERIZON WIRELESS. AUGUST 4-10 AUGUST 4 Make your business instantly more productive by switching to the only Push to Talk service Film in the City holds networking reception. 6:30 p.m. to 9 p.m., Roosevelt that comes with the Network. And right now you can get a great deal on one of our hardest- Hotel, Mad46 Lounge, East 46th Street working phones. Verizon Wireless. The smart choice for Push to Talk. and Madison Avenue. Free. (212) 629-1868 or [email protected]. AUGUST 5 Brazilian-American Chamber of Commerce Inc. holds breakfast on carbon credit markets in Brazil. 8 a.m. to 9:45 a.m., Covington & Burling, Add Push to Talkk to any 620 Eighth Ave., 46th floor. Fee: $50 Nationwide voice plan members, $100 nonmembers. (212) 751-4691. for only $5 a month. AUGUST 5 Plus, activate Push to Talk service Camba Small Business Services holds on 5 or more new business lines workshop on Web search engines. 6 p.m. and get these great deals. to 9:30 p.m., 884 Flatbush Ave., Brooklyn, second floor. Free. G’zOne BoulderTM (718) 282-2500. AUGUST 5 $ 99 Lower Manhattan Business Solutions 79 Center holds workshop on mass With new 2-yr. activation on any Nationwide voice plan. marketing tools. 9 a.m. to 12 p.m., 79 • Meets military standard 810F for John St., second-floor conference room. water, shock and dust resistance Free. (212) 618-8914 or [email protected]. AUGUST 5 Motorola AdventureTM V750 Manhattan Review holds workshop on M.B.A. admissions. 7 p.m. to 8:30 p.m., $ 99 Graybar Building, 420 Lexington Ave., 49 suite 2310. Free. (212) 997-1660. With new 2-yr. activation on any Nationwide voice plan. AUGUST 6 • Turn-by-turn directions with Five O’Clock Club holds seminar on VZ NavigatorSM how to turn job interviews into offers. 6:30 p.m. to 8:30 p.m., 11 Penn Plaza, fifth floor. Fee: $50. (914) 788-5482 or [email protected]. AUGUST 6 Asian Women in Business holds workshop on business communication. 6 p.m. to 9 p.m., Bovis Lend Lease, 200 Park Ave. Fee: Free for members, $30 nonmembers. (212) 868-1368 or [email protected]. —sarah studley For Push to TalkTaalkk solutionssolutu ions forfor youryo small business, let Verizon Wireless be your “go-to” guy. TO LIST YOUR EVENT

Crain’s lists business meetings online and includes Call 1.800.VZW.4BIZ Clickk verizonwireless.com/pushtotalk Visit a Verizon Wireless store them in the print edition on a space-available basis. VERIZON WIRELESS COMMUNICATIONS STORES Events in New York City with admission fees of less See store for Return/Exchange Policy. than $300 are considered for the print publication. MANHATTAN Union Square 57 W. 57th St. 134 W. 34th St. 100 Wall St. & Water NASSAU Westbury SUFFOLK Smith Haven WESTCHESTER 342 Madison Ave. 859 Broadway btwn. 5th & 6th Ave. btwn. 6th & 7th Ave. (Closed Sat. & Sun.) Massapequa 49 Old Country Rd. East Northport 1 Smith Haven Mall Hartsdale Listings can be submitted only through the Crain’s @ 43rd St. 212-206-7587 212-980-4860 917-351-8000 212-510-6160 5070 Sunrise Hwy. 516-937-2960 4000 Jericho Tpke. 631-382-3720 355 N. Central Ave. Web site. To submit a calendar listing, go to 212-856-6100 516-797-3880 631-499-1820 914-286-4120 www.crainsnewyork.com and click on “Events.” Hablamos Español Sponsors have a choice of several free or paid listing options. All business events will be posted Activation fee/line: $35. IMPORTANT CONSUMER INFORMATION: Subject to your Major Account Agreement or Customer Agreement, Calling Plan and credit approval. Offer available for corporate-liable customers only. Up to $175 early termination fee and other charges per online within two business days. line. Push to Talk requires compatible phone and is available only with other Verizon Wireless Push to Talk subscribers. Push to Talk phones are not eligible for $50 Red Hot Summer Sale promotion. Offers and coverage, varying by service, not available everywhere. Network details and Crain’s can neither confirm receipt of listings nor say coverage maps at verizonwireless.com. While supplies last. Shipping charges may apply. Limited-time offer. © 2008 Verizon Wireless. if or when event listings will appear in the print edition.

58218-18.indd 1 7/18/08 4:31:12 PM 14 | Crain’s New York Business | July 28, 2008 Project2 7/21/08 10:09 AM Page 1

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REAL ESTATE INSIDE Top leases from CoStar PAGE 20 Top property sales from Real Capital Analytics PAGE 22 Deals Insurer trades up for better digs downtown; other transactions PAGES 25-26

Big-box supply outruns demand Store landlords consider breaking up units, seeking alternate tenants

BY ADRIANNE PASQUARELLI

along a one-block stretch of West 57th Street between Broadway and Eighth Avenue, three vast retail properties stand empty, awaiting large- scale tenants.The spaces at 224 and 250 W. 57th St. have been on the market since late last year. A similar space at 300 W. 57th St. has been up for grabs for more than two years. That cluster is symptomatic of a phenomenon increasingly evident across the city. From midtown Manhat- tan to 1M Harlem’s SHRINKING POOL SQUARE new East OF WORK: Les FOOTAGE River Bluestone’s two of the Bronx’s Plaza and construction firms Gateway Center, the unfin- focus almost scheduled to exclusively on ished affordable housing. open next year Rego Park

Mall II in buck ennis Queens, a growing number of large retail units are waiting for stores. A rising supply of retail spaces of 20,000 square feet and Builders adjust plans up is colliding with a falloff in demand. A consumer spending slump has sapped the appetite of the relatively small corps of big-scale retailers for new out- to survive hard times lets. In recent months, two of them—Linens ’n Things and Steve & Barry’s—have been forced into bankruptcy. In re- Take on smaller jobs, recession-proof projects SHAKY FOUNDATION sponse, New York landlords are Residential permits are down 43%, and units covered thinking about breaking up up the supply of new projects entering the by permits are down 23%. their megaspaces into smaller BY DANIEL MASSEY pipeline, making 2008 feel a lot like the end of ’07 units ’08 units units or are seeking alternative the last building boom in the city. covered by covered by types of tenants. to many people in the residential construction “If your head’s not in the sand, you’re seeing ’07 permits permits ’08 permits permits “Everything’s taking more industry, the current environment is looking an that your backlog got a lot iffier because it’s very Bronx 334 1,714 196 1,089 time,” says Faith Hope Conso- awful lot like that of 1989. hard to get construction financing right now,” lo, chairman of retail leasing Sure, the city is far safer, the tourists are says David Picket,president of building compa- Brooklyn 472 4,765 273 3,394 and sales at Prudential Douglas spending their euros in shops and restaurants ny The Gotham Organization.“If the job hasn’t Manhattan 43 2,510 48 2,357 Elliman. She blames growing with abandon, and the job losses have barely be- started, you have to be skeptical about its Queens 793 3,290 374 2,453 caution on retailers worried gun. chances.” about overextending them- But for a growing number of builders,a cred- The sudden,sharp tailing off of new business Staten Island 235 343 175 430 selves, and landlords eager to it crisis coupled with changes to a heavily used comes after an extraordinary residential build- Total 1,877 12,622 1,066 9,723 See BIG BOXES on Page 18 residential subsidy program have suddenly dried See BUILDERS on Page 19 Data are through May. Source: U.S. Census Bureau

July 28, 2008 | Crain’s New York Business | 17 CNYB 07-28-08 A 18 7/23/2008 5:01 PM Page 1

REPORT

HOME DEPOT made its Manhattan debut with a multilevel store in the Flatiron district. getty images Big boxes go vacant

Continued from Page 17 to find, kind of tenant. assure themselves that the tenant In areas like West 57th Street, they sign has staying power. where concentrations of such prop- In contrast to the slowing pace of erties have popped up, some ob- leasing, the supply of larger spaces servers say that jittery prospective continues to build. Among other tenants are reluctant to stick their projects, the 1 million-square-foot necks out and lead. Gateway Center at Bronx Terminal Market, at 149th Street near the Breaking the ice current Yankee Stadium,is expected “whoever makes the first move to open next year, as is the 600,000- is going to set the tone as to what square-foot Rego Park Mall II. happens with the other spaces in The Bronx project, for example, the neighborhood,” says Robin has signed on big-name tenants in- Abrams, a Lansco Corp. broker cluding Toys “R” Us and Bed Bath who also chairs the retail commit- & Beyond.But another such tenant, tee for the Real Estate Board of Home Depot, has put many of its New York. Finding that ice-break- new stores on hold lately. Hit hard ing tenant in a softening economy is by the housing crisis, the chain is the hard part. mulling plans to sublet space it had Big-box tenants, however, are agreed to occupy in East River Plaza crucial draws for many projects.Ed- to Costco. ward J. Minskoff Equities recently While big-box stores began pop- signed leases with small-space re- ping up in significant numbers in tailers including GameStop and T- Queens in the 1990s, they were Mobile at its nearly 90,000-square- practically unheard of in hyper- foot retail development at 270 pricey, space-starved Manhattan Greenwich St. in TriBeCa, but only until the new millennium. Then after landing such big retailers as came the Whole Foods stores and Bed Bath & Beyond and Whole the Home Depots. Foods. As those big chains scale back ex- Recent demand pansion plans, some landlords are the upscale grocery opened a taking second-floor space once in- 40,000-square-foot outpost on Sev- tended for retail use and converting enth Avenue in Chelsea in 2001. it to offices. Others are breaking up Three years later, Home Depot their sprawling ground-floor spaces made its Manhattan debut with a into more bite-size pieces. 108,000-square-foot multilevel Others with large spaces on their store in the Flatiron district. Other hands are getting creative. Earlier big-box retailers have followed. this year, Silverstein Properties Swedish furniture store Ikea opened leased more than 33,000 square feet its sprawling 346,000-square-foot at 1 River Place,on 12th Avenue be- store in Red Hook, Brooklyn, just tween West 41st and West 42nd last month after a multiyear struggle streets, to Lucky Strike Lanes, a to win the necessary approvals. Hollywood, Calif.-based bowling Encouraged by the demand for alley.The space, at the base of a res- such properties, developers quickly idential tower, had been vacant for geared up to build them. nearly seven years. “In recent years,we’ve seen a sub- “These days, you have to be cre- stantial amount of that type of space ative and think outside the box,”says hit the market,” says David Rosen- Prudential Douglas Elliman’s Ms. berg, executive vice president at Consolo. Robert K. Futterman & Associates. He notes that such spaces require a COMMENTS? very specific, and increasingly hard [email protected]

18 | Crain’s New York Business | July 28, 2008 CNYB 07-28-08 A 19 7/23/2008 6:04 PM Page 1

REPORT REAL ESTATE Builders adjust for hard times

Continued from Page 17 ing boom that saw 413,578 units SILVER LINING built at a cost of $72.6 billion from 2000 through the end of last year, CONDITIONS IN THE RESIDENTIAL CONSTRUCTION MARKET are worsening, but according to McGraw-Hill Con- the slowdown could have at least two positive side effects on building costs, struction.While contractors are still including a widely anticipated increase in labor productivity. busy completing residential projects “When the market gets extraordinarily overtaxed, productivity goes down,” they landed in the boom years, they says Nick Lembo, president of Monadnock Construction Inc. “When the whole are also out scrambling for new con- thing recedes, productivity will go up because the best workers are doing the tracts to sustain them in the lean work.” years.Many are looking for different Meanwhile, costs that have been spiraling out of control for years could types of projects.Others are bidding start to come down a bit. Decreases are not likely in the next six months on jobs they might have passed up as because of the volume of work still being done, but they seem increasingly too small to bother with in more likely later. flush times. On any given job, costs of labor and materials are split about 50-50. “The firms which focus on resi- Courtesy of strong demand for everything from concrete to steel in markets dential and are not prepared to including the Middle East and China, prices for materials are unlikely to change to other types of construc- fall significantly any time soon, but there may be some slippage. tion may be in trouble,” says Sonia Labor costs could prove to be even more susceptible to the anticipated Drexler, chief operating officer of falloff in demand. Willis North America’s construc- “A lot of it you can’t negotiate,” says David Picket, president of The tion practice. “The construction Gotham Organization. “But if a concrete subcontractor has four deals in his companies that are flexible should backlog and two of them fall out of bed and you go to negotiate with him, be OK.” he’s going to do better for you than he did when he thought he The abrupt switch from feast to THE WORLD’S LEADING prospective famine has been fed by had four deals.” three main factors:the credit crunch, Builders themselves are likely to make their own COMPANIES ARE REDISCOVERING reforms to the 421-a program that contributions to falling construction costs THE WORLD’S MOST FAMOUS forced developers to have founda- as increased competition for fewer tions in the ground by June 30 to projects forces the industry to accept OFFICE BUILDING qualify for subsidies,and a slowing in lower profit margins in order to win bids. residential sales. The impact is clear. In the first five months of this year, the number ing Trades Employers’ Association. for work,” he says. “In good times, W&H Properties of permits issued for new residential Mr. Picket notes that Gotham is you’d never see them in the afford- buildings across New York City already considering schools and able-housing market.” is pleased to announce the plummeted by 43% compared with dorms as ways to beef up its backlog. Even giants like Turner Con- the same period of 2007, according “You have to be looking at institu- struction Co., which among other following transaction at to the latest figures from the U.S. tions that stay in business through things is building the new Yankee The Empire State Building Census Bureau. The steepest drops thick and thin—the major cultural, Stadium, are looking to fill back- came in Queens, where permits medical and educational institu- logs. Turner’s pipeline is packed plummeted 53%, to 374, and in tions in the city,” he says. through 2009, but that hasn’t Brooklyn,where they dropped 42%, The rub is that more and more stopped Executive Vice President to 273. Pat DiFilippo from thinking about McGraw-Hill estimates that 2010 and beyond. residential construction spending in “The next few years will look a the New York City area will tumble little different than the last three 30% this year, to $6.7 billion. The years in terms of who you’re con- declines come on the heels of a structing for, velocity and frequen- 88,000 Square Feet record year. In 2007, the city issued cy,” he says. “When it gets slower, permits for the construction of you have to start selling.” 32,000 residential units, the highest Represented By number in 35 years. Vulnerable firms Courtesy of that surge, most res- istockphotos as the tussle for what business re- Richard Bernstein idential builders have enough work mains intensifies, some companies to carry them through 2009. But to Construction are likely to find themselves squeezed Ralph Giordano keep their crews busy into the next out at the trough.Particularly vulner- Colliers ABR decade,firms are casting a wider net, spending in able are outfits that sprouted during turning their sights on such famous- the boom, but that didn’t have ly recession-resistant projects as 2008 is expected enough time to cultivate relation- schools, hospitals, cultural institu- ships and establish track records. tions and public works projects. to tumble 30% “There are firms doing larger projects today that have no business Healthy areas or experience doing them, but that activity in some of those sub- filled the gap in a strong market,” REINVENTING THE WORLD’S MOST markets continues to be robust. says Mr.Coletti.If they are lucky,he McGraw-Hill reported dorm con- notes, they will return to doing FAMOUS OFFICE BUILDING struction in the city was up 96% in companies will be competing for a small jobs. the first six months of the year,com- shrinking pool of work. That is bad Conditions are expected to be pared with the same period last year, news for firms like Les Bluestone’s harshest in the boroughs outside to a total of $107 million. Mean- Blue Sea Construction Co.and Blue Manhattan, where residential con- while, spending on hotel construc- Sea Development Co., both of struction is expected to dry up. tion soared 109% in the same peri- which focus almost exclusively on “The boom has brought in all od, to $344 million, while spending affordable housing. kinds,” says the president of a large on public works—bolstered by the In this cycle, Mr. Bluestone bets city construction firm who asked extension of the No. 7 train—rose that more firms will do what he did not to be identified because he did 39%, to $6.7 billion. in the late 1980s, when he all but not want to be seen as disparaging 100 COMMISSION ON SIGNING “Contractors do an assessment of abandoned market-rate housing. smaller companies. “Every video % the total market—health care,educa- Before that, his business was split store manager and shoe clerk has be- tion, hotels, schools—and really 60-40 between affordable and mar- come a contractor. They’re going to STEPHEN K. EYNON compete for jobs they think they can ket-rate housing. disappear.” Director of Leasing 212-400-3351 | [email protected] have a strong success rate with,” says “When things get slow, some of Louis Coletti,president of the Build- the very large firms come looking COMMENTS? [email protected] The Empire State Building design is a trademark of ESBC. CNYB 07-28-08 A 20 7/23/2008 6:02 PM Page 1

REPORT REAL ESTATE CoStar’s Top Manhattan Office Leasing Deals Biggest transactions in first-half 2008, ranked by square feet

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

1 375 Hudson St.1 819,325 Saatchi & Saatchi CB Richard Ellis Tishman Speyer Tishman Speyer Hudson Square 2 2 180 Maiden Lane 803,000 AIG CB Richard Ellis The Moinian Group Newmark Knight Frank Financial District 3 636 11th Ave. 554,800 Ogilvy & Mather CB Richard Ellis The Hakimian Organization Cushman & Wakefield Times Square 4 380 Madison Ave. 541,382 United Nations Newmark Knight Frank Solow Building Co. CB Richard Ellis Grand Central 5 300 Park Ave.1 537,515 Colgate-Palmolive Co. GVA Williams Tishman Speyer Tishman Speyer Plaza District 6 60 Broad St. 480,708 State of New York The Staubach Co. Wells Real Estate Investment Funds Cogswell Realty Group Financial District 7 1290 Sixth Ave.1 423,174 AXA Newmark Knight Frank Vornado Realty Trust Vornado Realty Trust Plaza District 8 100 Church St.1 344,516 City of New York Direct deal The Sapir Organization CB Richard Ellis World Trade Center 3 9 825 Seventh Ave. 165,716 Mediaedge:cia CB Richard Ellis Vornado Realty Trust Edward J. Minskoff Equities Inc./ Columbus Circle Vornado Realty Trust

3 10 1185 Sixth Ave. 164,771 RSM McGladrey Inc. CB Richard Ellis SL Green Realty Corp. SL Green Realty Corp. Times Square 11 395 Hudson St. 163,000 Newsweek Cushman & Wakefield NYC District of Carpenters Pension Fund Cushman & Wakefield Hudson Square 12 333 W. 34th St. 161,810 The Segal Co. CB Richard Ellis SL Green Realty Corp. Cushman & Wakefield/ Penn Plaza/Garment SL Green Realty Corp. 13 1290 Sixth Ave. 156,282 Cushman & Wakefield Cushman & Wakefield Vornado Realty Trust Vornado Realty Trust Plaza District 14 26 Broadway 136,500 School Construction Authority The Staubach Co. The Chetrit Group Newmark Knight Frank Financial District 4 15 345 Park Ave. 121,215 KPMG CB Richard Ellis Rudin Management Co. Rudin Management Co. Plaza District 16 340 Madison Ave. 120,930 SunGard Systems International Inc. Newmark Knight Frank Broadway Partners CB Richard Ellis/Cushman & Wakefield Grand Central 17 153 E. 53rd St. 120,000 General Motors Corp. Jones Lang LaSalle Americas Inc. Boston Properties Inc. Jones Lang LaSalle Americas Inc. Plaza District 1 18 1375 Broadway 114,691 Anchin Block & Anchin GVA Williams Statecourt Enterprises GVA Williams Penn Plaza/Garment 19 40 W. 57th St. 109,000 Highbridge Capital Management Cushman & Wakefield The Lefrak Organization CB Richard Ellis Plaza District 1 20 2 Wall St. 105,374 Carter Ledyard & Milburn Byrnam Wood George Comfort & Sons Inc./ George Comfort & Sons Inc. Financial District Loeb Partners Realty 21 590 Madison Ave. 100,120 Crowell & Moring Cushman & Wakefield Edward J. Minskoff Equities Inc. Edward J. Minskoff Equities Inc. Plaza District 3 22 340 Madison Ave. 99,504 Comptroller of the Currency Studley Broadway Partners CB Richard Ellis Grand Central 1 23 60 Hudson St. 99,471 New York City Department of Correction GVA Williams 60 Hudson Owner GVA Williams TriBeCa 1 24 711 Third Ave. 98,618 Crain Communications Inc CB Richard Ellis SL Green Realty Corp. SL Green Realty Corp. Grand Central 25 11 Madison Ave. 98,175 Enfatico CB Richard Ellis The Sapir Organization CB Richard Ellis Gramercy Park 2 26 150 E. 42nd St. 93,967 Carat North America Newmark Knight Frank 150 TT RGG Cushman & Wakefield Grand Central 1 27 711 Third Ave. 89,413 Parade Publications CB Richard Ellis SL Green Realty Corp. SL Green Realty Corp. Grand Central 28 1185 Sixth Ave. 83,822 News America Inc. L&L Acquisitions SL Green Realty Corp. SL Green Realty Corp. Times Square 29 200 Varick St. 80,475 Cardinia Real Estate Feld Real Estate Newmark Knight Frank Newmark Knight Frank Hudson Square 1 30 32 Old Slip 76,153 The Bank of New York Mellon Corp. Jones Lang LaSalle Americas Inc. Old Slip Property CB Richard Ellis Financial District 31 120 Park Ave. 75,000 Philip Morris International CB Richard Ellis Global Holdings Inc. Eastgate Realty Grand Central 4 32 245 Park Ave. 72,519 Major League Baseball Properties Inc. Cushman & Wakefield Brookfield Properties/ING Clarion Partners Brookfield Properties Grand Central 33 620 Eighth Ave. 69,503 British Telecommunications The Staubach Co. Forest City Ratner Cos. CB Richard Ellis Times Square 4 34 532-582 Washington St. 67,916 Bloomberg LP CB Richard Ellis Eugene M. Grant & Co. Eugene M. Grant & Co. Hudson Square 3 35 717 Fifth Ave. 64,525 Man Group plc Jones Lang LaSalle Americas Inc. The Blackstone Group CB Richard Ellis Plaza District 36 1 Rockefeller Plaza 64,475 DirecTV Cushman & Wakefield Tishman Speyer Tishman Speyer Plaza District 37 229 W. 36th St. 64,283 American Language Communication Center Studley Real Estate Capital Partners CB Richard Ellis Penn Plaza/Garment 3 38 9 W. 57th St. 63,200 Och-Ziff Capital Management Group Direct deal Solow Building Co. CB Richard Ellis Plaza District 2 39 399 Park Ave. 61,209 Eton Park Capital Management Newmark Knight Frank Boston Properties Inc. Newmark Knight Frank Plaza District 4 40 11 Penn Plaza 60,313 Macy’s Inc. CB Richard Ellis Vornado Realty Trust Vornado Realty Trust Penn Plaza/Garment 1 41 205 E. 42nd St. 58,524 Residential Management Group Cushman & Wakefield The Durst Organization The Durst Organization Grand Central 2 42 75 Rockefeller Plaza 57,552 National Broadcasting Co. Cushman & Wakefield Time Warner Inc. The Staubach Co. Plaza District 1 43 666 Fifth Ave. 55,755 Victoria’s Secret CB Richard Ellis 666 Fifth Associates Tishman Speyer Plaza District 1 44 220 E. 42nd St. 55,078 Omnicom Group Inc. Feld Real Estate SL Green Realty Corp. SL Green Realty Corp. Grand Central 45 335 W. 16th St. 54,000 School of Visual Arts Colliers ABR Inc. David Fine CB Richard Ellis Chelsea 1 46 529 Fifth Ave. 52,473 Finlay Fine Jewelry Corp. Newmark Knight Frank Silverstein Properties/Loeb Partners Realty Silverstein Properties Inc. Grand Central 47 304 Park Ave. South 52,465 IMG Models The Staubach Co. 304 Park Avenue South LLC Cushman & Wakefield Gramercy Park 48 750 Third Ave. 52,418 Regent Business Centers Newmark Knight Frank SL Green Realty Corp. SL Green Realty Corp. Grand Central 3 49 45 Broadway 52,000 Cozen O’Connor Cushman & Wakefield The Lawrence Group The Lawrence Group World Trade Center 4 50 900 Third Ave. 51,825 Tannenbaum Helpern Syracuse & Studley Paramount Group Inc./ Cushman & Wakefield Plaza District Hirschtritt ING Clarion Partners This list includes leases with terms of more than two years. Deals are for new leases unless otherwise noted. 1-Renewal. 2-Sublease. 3-Renewal and expansion. 4-Expansion. 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 United States and the United Kingdom. For more information, visit www.costar.com or call (877) 7 COSTAR.

20 | Crain’s New York Business | July 28, 2008 CN012211 7/22/08 12:17 PM Page 1

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www.cushmanwakefield.com CNYB 07-28-08 A 22 7/23/2008 5:07 PM Page 1

REPORT REAL ESTATE Real Capital Analytics’ Top NYC Property Sales Biggest commercial transactions in first-half 2008, ranked by price

Sq. ft. or Address/ # of units/ property type/ Sale price price per Close submarket (in millions) sq. ft. or unit date Buyer Seller Seller’s representative TOP FOUR SALES 767 Fifth Ave. (GM Building) $2,800.0 1,925,000 6/9 Boston Properties/ Macklowe Properties CB Richard Ellis 1 Office $1,455 Goldman Sachs/ Midtown East Meraas Capital 650 Madison Ave.1 $680.0 600,000 4/9 Ashkenazy Acquisition Corp./ Hiro Real Estate Co. J.P.Morgan Realty Advisors 2 Office $1,133 Carlyle Group Midtown East 65 E. 55th St. (Park Avenue Tower)2, 3 $665.0 615,857 6/30 Shorenstein Properties Macklowe Properties Cushman & Wakefield 3 Office $1,080 Midtown East 120 Park Ave. (Altria Building) $525.0 643,000 3/25 Eastgate Realty Altria CB Richard Ellis 4 Office $816 Midtown East 850 Third Ave.2, 3 $325.0 613,664 6/30 Shorenstein Properties Macklowe Properties Cushman & Wakefield 5 Office $530 Midtown East 1250 Broadway 2 $310.0 702,763 5/16 Murray Hill Properties/ SL Green Realty Corp./ Cushman & Wakefield LIST RANK 1 6 Office $441 Jamestown Caisse de dépôt Midtown West ADDRESS 767 Fifth Ave. 224 W. 57th St. (The Argonaut)2, 4 $180.0 162,000 2/19 M1 Real Estate/ Hearst Corp. CB Richard Ellis PRICE PER SQ. FT. $1,455 7 Office $1,111 Joseph Safdieh Midtown West 450 W. 15th St. (Milk Studios) $161.0 291,216 1/15 Stellar Management/ Angelo Gordon & Co./ Eastdil Secured 8 Office $553 Rockpoint Group Belvedere Capital Midtown South 440 Ninth Ave. $160.0 339,000 1/16 Sherwood Equities/ SL Green Realty Corp. Cushman & Wakefield 9 Office $472 Paramount Group Midtown West 470 Park Ave. South $157.0 260,000 1/21 Teachers Insurance and Annuity SL Green Realty Corp. CB Richard Ellis 10 Office $604 Association Midtown East 100-104 Fifth Ave.2 $152.0 206,321 2/14 Rock Investments Atlas Capital Group None 11 Office condo $737 Midtown South 200 E. 82nd St. (The Wimbledon) 2 $150.4 230 6/25 Adellco/J.P.Morgan Chase Rosen family Jones Lang LaSalle 12 Apartment $653,696 Upper East Side LIST RANK 2

360 E. 65th St. (Stonehenge 65) 2 $126.6 158 1/23 Stonehenge Partners Inc. Broadway Management Co. Eastern Consolidated ADDRESS 650 Madison Ave. 13 Apartment $801,085 PRICE PER SQ. FT. $1,133 Upper East Side

130 E. 57th St. (Hotel 57) 4 $99.0 220 1/5 Apple REIT Rockpoint Group/ Eastdil Secured 14 Hotel $450,000 Property Markets Group Midtown East 51 Astor Place (Cooper Union) 2, 4, 5 $97.0 440,000 2/13 Edward J. Minskoff Equities Inc. Cooper Union Studley 15 Development site $220 Midtown South 80-94 West End Ave.2 $90.0 167,838 4/17 Walter & Samuels Inc. 80 West End Partners n/a 16 Office $536 Upper West Side 49 W. 47th St. (Jewelry Exchange) 2 $85.0 92,995 4/1 Real Evergreen International/ Western Management Cushman & Wakefield 17 Office condo $914 Wo Yee Hing Realty Corp. Sonnenblick Goldman Midtown West 372 Canal St. (Sheraton Tribeca) 2, 5 $83.5 161,292 1/25 Magna Hospitality Group McSam Hotel Group None 18 Development site $518 Downtown

141 E. 33rd St./100 E. 20th St. $82.7 175 2/13 Stonehenge Partners Inc. Gramercy Holdings CB Richard Ellis LIST RANK 3 19 Apartment $472,400 Midtown South ADDRESS 65 E. 55th St. PRICE PER SQ. FT. $1,080 125 W. 45th St. (Hotel QT) 2 $82.0 139 4/15 Ferrado Group André Balazs Properties Eastdil Secured 20 Hotel $589,928 Midtown West 157 W. 47th St. (Quality Hotel) 2 $75.0 146 4/30 Rockefeller Group Hampshire Hotels Group n/a 21 Hotel $513,699 Development Corp. Midtown West 62-60 99th St. (Saxon Hall) 2 $74.0 419 5/28 Lubert-Adler/ Kelmar Holding Co. n/a 22 Apartment $176,611 Vantage Properties Rego Park, Queens 600 Broadway 2 $71.0 73,180 1/17 Adjmi family Enterprise Asset Management Cushman & Wakefield 23 Office $970 Downtown 696-702 Broadway 2 $70.0 77,249 6/23 Weitz & Luxenberg Lincoln Property Co. Newmark Knight Frank 24 Office $906 Midtown South 336-340 W. 49th St.2 $70.0 252 6/4 Orbach Group Nathan Halegua Massey Knakal 25 Apartment $277,778 Midtown West LIST RANK 4 n/a Not available. 1-Eastdil Secured represented Ashkenazy Acquisition Corp. 2-Price is approximate. 3-A 93.5% interest was traded; the price reflects 100% valuation. 4-Leasehold. 5-Square footage figures are for buildable square feet and ADDRESS 120 Park Ave. price per buildable square foot. Real Capital Analytics Inc. is an independent research firm focused exclusively on the capital investment markets for commercial real estate. RCA offers comprehensive, current information on activity in the PRICE PER SQ. FT. $816 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 series of Capital Trends reports

and offers an online service that provides real-time, global transactional market information. For more information, visit www.rcanalytics.com. photos: buck ennis

22 | Crain’s New York Business | July 28, 2008 CN012187 7/8/08 4:31 PM Page 1 Building the Future of New York

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Visit builditunion.com for your free Quality • Safety • Opportunity rebuilding New York pin BUILDITUNION.COM CNYB 07-28-08 A 24 7/23/2008 5:03 PM Page 1

REPORT

REAL ESTATE AND MORE ON CRAIN’S WEB SITE Resources Get easy links to government agencies and industry groups involved in New York real estate. Events View a current listing of local meetings, seminars and other networking events of interest to real Tuesday e-mail Sign up for Crain’s estate professionals. Real Estate Insider, a weekly e-mail newsletter featuring the latest deals, Online polls Express your opinions events and personnel moves in one about key issues of the week. of the hottest industries. Go to Subscribe Click the “Subscribe” www.crainsnewyork.com/signup. button to order the Breaking news E-mail alerts keep weekly print edition you up-to-date on local develop- of Crain’s. ments in commercial and residential Two-week trial real estate as they happen. subscriptions are available for two Company alerts Crain’s Web site daily online news- visitors can sign up for letters: Crain’s e-mail alerts Insider, which that provide covers politics, and news about Crain’s Health a particular Pulse, which covers real estate the health care brokerage or industry. Click on other firm. the “More” button Back issues following the Health Pulse or Insider Use the headline on the right side of the archives to Crain’s home page. Under “Health find stories Pulse Tools” or “Insider Tools,” click published in past editions of Crain’s. on “Request a Free Trial.”

24 | Crain’s New York Business | July 28, 2008 CNYB 07-28-08 A 25 7/24/2008 10:06 AM Page 1

REPORT REAL ESTATE

Dousoeur de Paris, a new French represented both the tenant and the Deals bakery, recently signed a 10-year landlord. lease for 900 square feet at 652 10th —adrianne pasquarelli Ave., on the corner of West 46th Street.The asking rent for the space, Conservation group Insurance broker which includes a small basement for storage, was $110 per square foot. enlarges footprint Dousoeur de Paris’ owners, Di- ane Cepeda and Corine Fina, are open space institute is expand- raises outlook sisters who were born and raised in ing its footprint at 1350 Broadway,at France.Both are excited about start- West 36th Street, by a third. ing their first bakery in New York. The land conservation group will third floor at 45 Broadway. “The market here is very limit- increase its space on the building’s Hugh Wood trades In addition to gaining more nated,” says Ms. Cepeda. “If people second floor to 12,000 square feet. up downtown, signs ural light, Hugh Wood also will get 55 BROADWAY welcomes tenant Hugh Wood. want to have something tasty with a In the process, the institute will a more efficient floor plate in the 32- nice presentation, it will either be trade in its old 10-year lease, signed for higher floor story building. The asking rent was very expensive or they will be stuck in 2001, for a new lease that will run $62 a square foot for the space, ing their Manhattan headquarters with Starbucks coffee.” through 2023.The asking rent at the one block north which is 25% smaller than the firm’s downtown,” says Mr. Frederick. The siblings hope to open their W&H Properties-owned building current home. “They traded an office with hardly bakery in the fall.The bakery’s name was $60 a square foot. owntown stalwart Leasing Director Daniel Blanco any views for a bright space higher up is a play on the French words for “Even though we’re a nonprofit Hugh Wood Inc. is and Associate Managing Director with windows almost on all sides.” both “two sisters” and “elegant.” organization, we’ve been growing moving up. The in- David Israni of Broad Street Devel- —damian ghigliotty Jean Bates, a broker with Man- incrementally,” says Susan Bar- surance broker re- opment,the building’s owner,nego- hattan Commercial Realty Corp., Continued from Page 26 cently signed a 10- tiated the deal for themselves. Bro- Croissants coming Dyear lease for the entire 24th floor at kers Jim Frederick and Richard 55 Broadway, also known as 1 Ex- Michaels of Colliers ABR repre- to Hell’s Kitchen change Plaza. The new, 10,800- sented the tenant, which plans to square-foot space is one block north move in by the end of August. hell’s kitchen residents will of the firm’s present location on the “Hugh Wood was intent on keep- soon be smelling the croissants.

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July 28, 2008 | Crain’s New York Business | 25 CNYB 07-28-08 A 26 7/24/2008 10:12 AM Page 1

REPORT REAL ESTATE

Jonathan Fanuzzi and Brian Water- as well as upgraded air conditioning Siegel represented the tenant. Deals man of Newmark Knight Frank ne- and elevators, is under way. Harch Group principal Harry Jere- gotiated for the landlord. —damian ghigliotty mias negotiated the deal in-house Continued from Page 25 Renovations on the tenant’s with assistance from broker David barisi, the group’s administrator. added floor space will be finished by Salk of Newmark Knight Frank. Brokers Steven Jaray and Brian September.Meanwhile,a $53 million Fine vintages on tap A $20 million renovation of the Given of GVA Williams represent- renovation that will give the 25-story for far West Side building is in the works. ed the tenant in the deal. Brokers building a new lobby and restrooms, —damian ghigliotty in italian, “ardesia” means “slate.” In Hell’s Kitchen,it will soon be syn- onymous with fine wines. The own- Japanese nonprofit ers of an upscale wine bar concept by does better for less that name recently signed a 15-year lease for 1,100 square feet at 510 W. japan local government center 52nd St., between 10th and 11th av- is upgrading its outlook. The non- enues. The asking rent was $65 per profit, which acts as a liaison be- square foot. tween local governments in Japan “It’s going to be a very high-end and their American counterparts, wine bar with hors d’oeuvres,” says signed a 10-year lease for 8,500 Michele Pasqualina, a broker with square feet on the 20th floor at 3 Cushman & Wakefield Inc. who Park Ave. The asking rent in the represented the tenant. 1350 BROADWAY has space for Open Space. building, which is owned by Cohen The Ardesia wine bar, owned by Brothers Realty Corp., was $60 a the Vendange Group, will open in square foot. three to four months.Aaron Gavios, date its growing business. JLGC will move in December, a partner with Square Foot Realty, The firm recently signed an when its present lease at tony 666 represented the landlord. eight-year deal to lease 13,500 Fifth Ave. expires. —adrianne pasquarelli square feet at 218 W. 18th St.The con- “They wanted to find some- sulting firm will be the second ten- where with better light and better ant to sign on in the building since views in a more cost-effective Calif. consultant its recent acquisition by the Harch space,” says JLGC’s broker, Greg grows NY presence Group. The space is more than four Kraut of CB Richard Ellis, who was times the size of SYPartners’ current assisted by broker Masa Tanaka. sypartners,a San Francisco-based office at 299 W. 12th St.The asking Steve Lambert and David global consulting firm,is moving six rent for the new lease averaged $57 a Nevins of Cohen Brothers’ leasing blocks north to larger quarters in square foot. team negotiated the lease in-house. Manhattan in order to accommo- Grubb & Ellis broker Stuart —damian ghigliotty

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26 | Crain’s New York Business | July 28, 2008 CNYB 07-28-08 A 27 7/25/2008 2:29 PM Page 1

WEEK IN REVIEW For daily news updates, go to www.crainsnewyork.com

endorsements and possibly land ECONOMIC SPOTLIGHT some screen time as an actor, signed a contract with William Morris Agency in Los Angeles. The 32-year-old got some free publicity earlier this month when his wife filed for divorce. State threatens suit over child porn state attorney general Andrew Cuomo threatened to sue Comcast Corp. if it doesn’t agree to eliminate access to child pornography through its Internet service. New York has already struck such agreements with AT&T,AOL, Verizon, Sprint Nextel and Time Warner Cable. IAC loses $170M internet conglomerate Will Batman rescue Time Warner? IAC/InterActiveCorp plans to THE DARK KNIGHT shattered box-office records by taking in take about $170 million in charges $155.3 million during its first weekend. The strong opening as it prepares to spin off four of its operating units. Company officials put the movie, which stars CHRISTIAN BALE as the caped said the hit stemmed from the Economy Watch crusader and the late HEATH LEDGER as the chaos-loving housing crisis diminishing the Joker, on course to top the $891 million made last year by value of its mortgage and real With the first of the Wall Street layoffs showing up, the city’s jobless rate estate businesses. rose in June, and the total number of jobs declined. Spider-Man 3. A UBS AG analyst said the film’s success MAY ’08 JUNE ’08 COMPARISON could allow Time Warner Inc. to reach its full-year forecast. Sweatshop found NY area inflation change +1.0% 1

+1.0% +4.5% bloomberg news NYC unemployment rate 5.2% 5.4% 5.5%2 the state Department of Labor and Schering-Plough Corp. got reported that garment maker Jin 3 NYC employment change -300 -1,000 +12,700 Jackson’s nip-slip more bad news about cholesterol Shun Inc. has underpaid its 1-NY area inflation change for the latest 12-month period. 2-U.S. unemployment rate for the lat- fine dismissed drug Vytorin when a European workers by $3 million over the est month. 3-NYC employment change year to date. study showed that it doesn’t past three years and deliberately the third u.s. circuit court of prevent heart problems.Their concealed sweatshop conditions in NYC Hotel Stats Broadway Stats Appeals threw out a $550,000 shares fell last week, even as its Long Island City, Queens, indecency fine against CBS Corp. Merck reported a 5% increase in factory.The owners allegedly Average occupancy and room rate Figures for both attendance and for the 2004 Super Bowl second-quarter earnings. coached employees about lying to rose in May, PKF Consulting data ticket sales climbed in the week “wardrobe malfunction” that Schering-Plough saw its profits inspectors and maintained two show, continuing to rebound after ended 7/20, bringing the totals for ended the half-time show with drop 23%. sets of time cards. the typical drop at the start of the the season to 2.1 million and Janet Jackson’s breast bared. It year. Year-to-date averages topped $152.9 million, according to The ruled that the Federal those for the same period in ’07. Broadway League. Communications Commission Guv backs cheap Verizon divests “acted arbitrarily and capriciously” student loans for Alltel deal in issuing the fine. gov. david paterson supported a verizon wireless offered to sell plan to create low-interest cellular operations in 85 markets NY Times student loans for public and across 16 states to win regulatory price rises private universities in New approval of its proposed purchase York.The state Commission of Alltel Corp. in Little Rock, the new york times on Higher Education Ark. Separately, more than Co. raised the proposed the subsidized loan 65,000 unionized employees at newsstand price of its program, which would be parent company Verizon flagship paper by a financed through tax-exempt Communications Inc. voted to quarter, bringing the bonds. authorize a strike if contract tab for the Monday- negotiations don’t produce a deal through-Saturday Cuomo sues UBS by the Aug. 2 deadline. Capital IQ’s Weekly Deals Report editions to $1.50 each. The Wall Street Journal state attorney general Bruno’s new gig TRANSACTION SIZE also recently raised its price by 50 Andrew Cuomo is suing UBS AG COMPANY/LOCATION (in millions) BUYER/INVESTOR TRANSACTION TYPE cents to $2.The hikes are intended for allegedly misleading investors former state Senate Majority to offset diminishing ad revenue. about risks in its auction-rate Leader Joseph Bruno became Lev Pharmaceuticals Inc. $581.3 ViroPharma Inc. SB M&A Manhattan securities market.The suit charges chief executive of CMA Elk Associates Funding Corp. $31.1 Freshstart Venture Capital Corp., SB M&A that the Swiss bank knowingly Consulting Services, which does Manhattan Medallion Bank Gov’t drops $20M sold and marketed the securities as business with the state.The ContextWeb Inc. $26.0 Draper Fisher Jurvetson, GCI in church plate safe even while its own computer programming Manhattan Draper Fisher Jurvetson Gotham executives shed $21 million of and information Ventures, Updata Partners, the government struck a $20 their personal holdings. technology firm is run by Investor Growth Capital million deal to take over the site of the wife of a late politician Lev Pharmaceuticals Inc. $20.0 ViroPharma Inc. GCI the destroyed St. Nicholas Greek whom Mr. Bruno once Manhattan A-Rod, Orthodox Church next to the appointed to the Kidville $10.0 Individual investors GCI Manhattan World Trade Center site.The H-wood Senate Finance FX Real Estate $7.9 Individual investors, GCI church, felled in the Sept. 11 Committee. and Entertainment Inc. management of FX Real Estate attacks, will be rebuilt a few blocks new york yankees —from Manhattan and Entertainment Inc. away. slugger Alex staff Selected deals announced during the week of July 13 for companies headquartered in metro New Rodriguez (right), reports York. GCI: Growth capital investment represents new money invested in a company for a minority looking to expand and stake. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing Drug firms plagued shares of a company without the participation of a financial buyer. his portfolio of bloomberg

bekka lindström bekka new jersey-based Merck & Co. corporate news reports bloomberg news July 28, 2008 | Crain’s New York Business | 27 nb30p28-30cls.qxp 7/24/08 10:56 AM Page 28

Crain's Classified is not responsible forCrain's corrupt Classified files submitted is not responsible by client or for adsCrain's corrupt run under Classified files the submitted wrong is not subheading. responsible by client or for adsCrain's corrupt run under Classified files the submitted wrong is not subheading. responsible by client or for ads corrupt run under files the submitted wrong subheading. by client or ads run under the wrong subheading.

ENTREPENEURS WANTED PUBLIC & LEGAL NOTICES

Notice to Former Subscribers of AFA Protective MERCER STREET DEVELOPMENT LLC, a Name of LLC: FRANKEL & GREEN THEATRI- Notice of Qualification of EKARD, LLC. Systems, Inc. and Ready Alarm, Inc. Crain's Classified is not responsible for corruptAs a result filesof a recent submitted settlement with by the client New or adsdomestic run under Limited the Liability wrong Company subheading. (LLC) CAL MANAGEMENT LLC. Articles of Org. Authority filed with Secy. of State of NY York City Fire Department, former fire alarm filed with the Sec of State of NY on 12-4- filed Dept. of State of NY on 4/18/08. Office (SSNY) on 6/6/08. Office location: NY Subscribers of AFA Protective Systems, Inc. and Ready 07. NY Office location: New York County. location in NY: New York County. Secy. of County. LLC formed in Delaware (DE) on Alarm, Inc., that paid "Fire Department Fees" to either SSNY is designated as agent upon whom State designated as agent of LLC upon 5/8/07. 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To Crain'sprocess against Classified the LLC is notmay responsiblebe served. forwhom corrupt process files against submitted it may be byserved. client or adsupon run whom under process the wrongagainst subheading.it may be determine eligibility, contact AFA at (516) 496-2369, SSNY shall mail a copy of any process Crain'sSec. of State Classified shall mail isa copy not of responsible process to: forserved. corrupt SSNY files shall submitted mail process by to client or ads run under the wrong subheading. ext. 638 or Ready Alarm at (516) 364-1152. against the LLC served upon him/her to c/o Richard Frankel, Richard Frankel princ. bus. loc.: 2 Wall St., NY, NY Productions, Inc., 729 Seventh Avenue, 12th Notice of Formation Color By Pergament Joe Sabbagh, C/O Ultimate Realty, 28 E. 10005. DE address of LLC: 2711 14th St., NY, NY 10003. Latest date to Floor, New York, NY 10019. The latest date Centerville Rd., Ste. 400, Wilmington, DE Crain's Classified is not responsible forLLC corrupt art. of filesorg. filed submitted Secy. of State by client NY or ads run under the wrong subheading. on which the LLC is to dissolve is (SSNY) 5/30/08. Off. loc. in NY Co. dissolve: 12-31-2055. General purposes. 19808. Arts. of Org. filed with DE Secy. 12/31/2075. Purpose: any lawful activity. of State, 401 Federal St., Ste. 4, Dover, SSNY designated as agent of LLC upon Notice of Formation of WHGA HARRIET REAL ESTATE whom process may be served. SSNY TUBMAN APARTMENTS, L.P. Certificate NOTICE OF FORMATION of Office Greeners DE 19901. Purpose: any lawful activity. shall mail copy of process to: Edward filed with Secy. of State of N.Y. (SSNY) on LLC. Arts. Of Org. filed with Secy. Of State of NOTICE OF FORMATION OF LIMITED LIA- COMMERCIAL David Esq, 3 Becker Farm Rd, Roseland, Crain’sMarch 13, Classified 2008. Office is location: not responsible New York forN.Y. corrupt (SSNY) fileson 4/28/08. submitted Office location: by client New or adsBILITY run COMPANY. under the NAME: wrong 2B. subheading.RYCH LLC. York County. SSNY designated as agent of NJ 07068. Purpose: Any lawful purpose. County. SSNY designated as agent of LP Articles of Organization were filed with the LLC upon whom process against it may be Crain's Classified is not responsible forupon corrupt whom files process submitted against it bymay client be or ads run under the wrong subheading. Secretary of State of New York (SSNY) on Notice of Qualification of The Stillwater served. SSNY shall mail process to: P.O. Box served. SSNY shall mail process to: The 05/14/08. Office location: New York County. Matrix Fund, LP. Authority filed with Secy. Crain's1855, NY, ClassifiedNY 10021. Principal is not business responsible for corrupt files submitted by client or ads run under the wrong subheading. Partnership, 1652 Amsterdam Avenue, SSNY has been designated as agent of the Crain’s Classified is not responsible for corrupt files submitted by client or adsof State run underof NY (SSNY) the wrong on 6/17/08. subheading. Office New York, NY 10031. Name/address of location: 404 E. 66th Street, Apt. 8L, NY, NY location: NY County. LP formed in 10065. Purpose: Any lawful activity. LLC upon whom process against it may be each genl. ptr. available from SSNY. Term: served. SSNY shall mail a copy of process Delaware (DE) on 10/5/07. SSNY desig- until December 31, 2058. Purpose: any Notice of Formation of Just Intimates to the LLC, c/o Alfred Dunner Inc., 1411 nated as agent of LP upon whom process lawful activity. against it may be served. SSNY shall mail LLC. Arts. of Org. filed with Secy. of State Broadway, New York, New York 10018. process to: 41 Madison Ave., 29th Fl., NY, Notice of Formation of Rottet Architecture of NY (SSNY) on 7/2/08. Office location: Purpose: For any lawful purpose. NY 10010. Registered agent upon whom and Design Studio, NY, PLLC. Arts. of NY County. Princ. bus. loc.: 1407 COMMERCIAL/FOR SALE Name of For. LP: 275 MAIN STREET process may be served: Corporation Org. filed with NY Dept. of State on Broadway, Rm. 3701, NY, NY 10018. ASSOCIATES, LP. Appl. for Auth. filed with Service Co. (CSC), 80 State St., Albany, 6/5/08. Office location: NY County. SSNY designated as agent of LLC upon 90th St, 215 W 24 HR DM Crain's Classified is not responsible for corrupt files submitted by client or adsSec. run of State under of NY: the 5/14/03. wrong Jurisd. subheading. and NY 12207. DE address of LP: c/o CSC, whom process against it may be served. Crain's Classified is not responsible forCrain's corruptOffered Classified files by Roxann submitted is notManagement responsible by client or for adsCrain’s corrupt run under Classified files the submitted wrong is not subheading. responsible by client or for adsPrincipal corrupt run under business files the submitted address: wrong 1540 subheading. by Kirby client or ads run under the wrong subheading. date of org.: DE 3/27/03. NY State office SSNY shall mail process to: Corporation Newly reno 2 rm office space in a P/W 2711 Centerville Rd., Ste. 400, Dr., Houston, TX 77019. Secy. of State loc.: New York Cty. Sec. of State designat- Service Co., 80 State St., Albany, NY Condo. Hi Ceils, h/w flrs, new kit w/gran- Wilmington, DE 19808. Name/address of designated as agent of PLLC upon whom ed as agent upon whom process against it 12207, registered agent upon whom ite cntrs. $499K, cc+RE Tax $322/mo each genl. ptr. available from SSNY. Cert. process against it may be served and may be served. Sec. of State shall mail Terry/Eva @ M.Bassett RE 212-222-2155 of LP filed with DE Secy. of State, 401 shall mail process to: c/o CT Corporation process may be served. Purpose: any copy of process to: National Registered www.margaretbassett.com #1290 Federal St., Ste. 4, Dover, DE 19901. System, 111 8th Ave., NY, NY 10011. lawful activity. Agents, Inc., 875 Avenue of the Americas, Purpose: any lawful activity. See offering plan for full terms Purpose: practice architecture. Notice of Formation of Wood River NY Suite 501, New York, NY 10001. Addr. of LIVING ROOM STUDIOS NY, LLC, a NOTICE OF FORMATION of Marimba Crain'sLLC. Arts. Classified of Org. filed is with not Secy. responsible of State forLP corrupt in DE is filesThe Corporation submitted Trust by client or ads run under the wrong subheading. Crain's Classified is not responsible for corrupt filesOFFICE submitted SPACE by client or adsdomestic run under Limited the Liability wrong Company subheading. (LLC) Crain'sFilms LLC. Classified Arts. Of Org. is notfiled responsiblewith Secy. forof corrupt NY (SSNY) files on submitted6/6/08. Office by location: client or adsCompany, run under 1209 theOrange wrong Street, subheading. Wilmington, DE 19801. Name/addr. of GP filed with the Sec of State of NY on 4-22- Of State of N.Y. (SSNY) on 5/20/08. Office NY County. SSNY designated as agent of avail. from Sec. of State. Authorized office OffCrain's Wall ClassifiedSt. on Pearl is St. not- Entire responsible floor for08. corrupt NY Office files location: submitted New York by County. client or adslocation: run under New York the County wrong SSNY subheading. desig- LLC upon whom process against it may Crain’s Classified is not responsible for corrupt files submitted by client or ads run under the wrong subheading. in DE where Cert. of LP is filed is Sec. of approx. 4,000 sf. Move in cond. Avail SSNY is designated as agent upon whom nated as agent of LLC upon whom be served. SSNY shall mail process to: State of DE, 401 Federal Street, Dover, DE immed. New AC. $8600.00 per month. process against the LLC may be served. Leonard B. Pack, Esq., Wechsler & process against it may be served. SSNY 19901. Purpose: any lawful activity. Crain's Classified is not responsible forDavid corrupt - 917-804-8442 files submitted or 917-548-9997 by client or adsSSNY run shall under mailthe a copy wrong of any subheading. process shall mail process to principal business Cohen, LLP, 17 State St., 15th Fl., NY, NY against the LLC served upon him/her to location: 203 East 7th Street, 2nd Fl., NY, 10004. Purpose: any lawful activity. Notice of Formation of Strassburger Chasten Harmon, 216 W. 136th St., #1, 5TH AVE/ 17TH ST. 8,500RSF NY 10009. Purpose: Any lawful activity. Notice of Formation of Fort Washington Meats LLC, Art. of Org. filed Sec’y of NY, NY 10030. General purposes. Crain's Classified is not responsible for corrupt files submitted by client or ads run under the wrong subheading. Beautiful Full Floor Ofc./ Loft, 1053701 w.o Holding LLC. Arts. of Org. filed with Secy. State (SSNY) 4/26/02. Office location: NY County. SSNY designated as agent of LLC Priced right. Noel 212-3714065 NOTICE OF FORMATION OF LIMITED Crain'sNotice of ClassifiedFormation of is Appena not responsible Fatto LLC. forof corrupt State of NY files (SSNY) submitted on 10/30/06. by client Office or ads run under the wrong subheading. upon whom process against it may be mercedesberk.com LIABILITY COMPANY. NAME: GRAND Arts. of Org. filed with Secy. of State of location: NY County. SSNY designated as served. SSNY shall mail copy of process Crain's Classified is not responsible for corrupt files submitted by client or adsBOWERY run under BRIGHT, the LLC. wrong Articles subheading. of N.Y. (SSNY) on 7/3/08. Office location: NY agent of LLC upon whom process against Crain's Classified is not responsible for corrupt files submitted by client or ads run under the wrong subheading. to 446 W. 14th St., NY, NY 10014. 53rd St. @ MADISON AVE Organization were filed with the Secretary County. SSNY designated as agent of LLC it may be served. SSNY shall mail process Purpose: any lawful activities. Newly renovated, full floor, elevator/24/7 of State of New York (SSNY) on 04/08/08. upon whom process against it may be to princ. bus.. loc.: c/o Gatsby Crain's Classified is not responsible forOffice corrupt location: files New submitted York County. by SSNY client or ads run under the wrong subheading. Enterprises, 347 Fifth Ave., NY, NY 10016. access, Doorman. 1700 sf, 5 offices with served. SSNY shall mail process to princ. 224 REALTIES LLC, a domestic Limited reception. Direct HVAC. For rent has been designated as agent of the LLC bus. loc.: c/o Pasta Resources, 45 E. 20th Purpose: any lawful activity. upon whom process against it may be Liability Company (LLC) filed with the 212-935-9089. St., 3rd Fl., NY, NY 10003. Purpose: any NOTICE OF FORMATION of Rubina LLC. Sec of State of NY on 5-9-08. NY Office served. SSNY shall mail a copy of process lawful activity. to the LLC, c/o Dr. Howard Lai, 11 East Crain's Classified is not responsible forArts. corrupt Of Org. filesfiled with submitted Secy. Of State by of client N.Y. or adslocation: run under New York the County. wrong SSNY subheading. is des- Crain’s Classified is not responsible forMadison corrupt Avenue files submitted(30s) - 1250 bysf, bright, client or ads run under the wrong subheading. (SSNY) on 5/13/08. Office location: New Broadway, #15, New York, New York Notice of Formation of Let’s Go Stables IV, Crain's Classified is not responsible forignated corrupt as agent files upon submitted whom process by client or ads run under the wrong subheading. private full floor on Madison, front/rear York County SSNY designated as agent of 10038. Purpose: For any lawful purpose. LLC. Arts. of Org. filed with NY Dept. of against the LLC may be served. SSNY windows, ofc use, new elevator, just LLC upon whom process against it may be State on 6/16/08 . Office location: NY shall mail a copy of any process against vacated, immed occupancy 516-482-8702 Crain'sNOTICE OF Classified FORMATION is notOF LIMITED responsible for corrupt files submitted by client or adsserved. run SSNY under shall the mail wrong process subheading. to princi- County. Secy. of State designated as agent the LLC served upon him/her to LIABILITY COMPANY. NAME: BITETTO pal business location: 58 Avenue C, #4A, of LLC upon whom process against it may Steinberg & Pokoik Management Corp., EQUITIES LLC. Articles of Organization NY, NY 10009. Purpose: Any lawful activity. SUBLET WANTED be served and shall mail process to: The 575 Madison Ave., 7th Fl., NY, NY 10022. were filed with the Secretary of State of LLC, c/o Phillips Nizer LLP, 666 5th Ave., Notice of Formation of Hornstein Studios General purposes. New York (SSNY) on 07/03/08. Office Looking for Office Space to NY, NY 10103, Attn: Monte Engler, Esq. LLC. Arts. of Org. filed with Secy. of State Crain's Classified is not responsible forlocation: corrupt New files York submitted County. SSNY by clienthas or ads run under the wrong subheading. Crain’s Classified is not responsible forCORE corrupt CLASSICS files submittedLLC Articles of by Org. client filed or ads run under the wrong subheading. Share/Sub-Let in Midtown Crain'sPurpose: Classifiedany lawful activity. is not responsible forof corrupt N.Y. (SSNY) files on submitted6/16/08. Office by loca- client or adsNY runSec. underof State the (SSNY) wrong 01/15/08. subheading. Office • Need 2 offices (approx.200 sq.ft been designated as agent of the LLC tion: NY County. SSNY designated as upon whom process against it may be Notice of Formation of LIPMAN DIGITAL, in New York County. SSNY design. agent each) with good light agent of LLC upon whom process against of LLC upon whom process may be • Plus, 2 x work station area Crain'sserved. SSNY Classified shall mail is nota copy responsible of forLLC. corrupt Arts. of files Org. submittedfiled with Secy. by of client State or adsit may run be under served. the SSNY wrong shall subheading.mail process Must be 'Grade A' building process to the LLC, 15 Charles Street, of N.Y. (SSNY) on 5/15/08. Office location: served. SSNY shall mail copy of process to princ. bus. loc.: c/o The LLC, 315 W. to 641 Lexington Ave 6th Floor, New York, [email protected] or Apartment PHC, New York, New York New York County. SSNY designated as 39th St., Ste. 1305, NY, NY 10018. NY 10022. Purpose: Any lawful purpose. 646-684-5353 10014. Purpose: For any lawful purpose. agent of LLC upon whom process against Purpose: any lawful activity. it may be served. SSNY shall mail process Notice of formation of Culinary Tech Crain'sNotice of ClassifiedFormation of is Harborview not responsible forName: corrupt PAROD’S files 3303 submitted LLC Art. byOf clientOrg. or ads run under the wrong subheading. Center, LLC. Arts. of Org. filed with the to: The LLC, 408 W. 14th St., New York, Filed Sec. Of State of NY 6/20/08. Off. TELECOMUNICATIONS NY 10014. Purpose: any lawful activity. Preservation GP II, LLC. Arts. of Org. filed Sect’y of State of NY (SSNY) on with Secy. of State of NY (SSNY) on Loc.: New York Co. SSNY designated as 6/13/2008. Office location, County of SCHARF MARKETING, LLC Articles of Org. 6/6/08. Office location: NY County. agent upon whom process against it may Crain'sNew York. Classified The street address is not responsibleis: 424 forCrain'sfiled corrupt NY Sec. Classified files of State submitted (SSNY) is not responsible4/28/08. by client or for adsPrincipal corrupt run under bus. files loc.: the submitted 60 wrong Columbus subheading. by Circle, client or adsbe runserved. under SSNY the to wrongmail copy subheading. of process Crain's Classified is not responsible forWest corrupt 33rd Street, files submittedSte. 240, New by York, client NY or adsOffice run in underNY Co. theSSNY wrong desig. subheading.agent of LLC NY, NY 10023. SSNY designated as agent to THE LLC 100 Park Avenue, Ste. 1600, 10001. SSNY has been designated as upon whom process may be served. of LLC upon whom process against it may NY, NY 10017. Purpose: Any lawful act. agent to the LLC upon whom process SSNY shall mail copy of process to 122 W be served. SSNY shall mail process to: JUDAH LLC, a domestic Limited Liability against it may be served. SSNY shall mail 26th St., #1100, NY, NY 10001, which is c/o Corporation Service Co., 80 State St., Company (LLC) filed with the Sec of State process served to: The LLC, 424 West also the principal business location . Albany, NY 12207. Purpose: any lawful of NY on 6-18-08. NY Office location: New 33rd Street, Ste. 240, New York, NY Purpose: Any lawful purpose. activity. 10001. Purpose: any lawful activity Crain's Classified is not responsible forYork corrupt County. files SSNY submitted is designated by as client or ads run under the wrong subheading. Notice of Qualification of ARAMARK Notice of Qualification of Goldman Sachs agent upon whom process against the Notice of Qualification of GS TACS Active Management, LLC. Authority filed with NY Investment Partners ESC Fund, L.P. LLC may be served. SSNY shall mail a Continuous (U.S. Large Cap), LLC. Dept. of State on 6/5/08. Office location: Authority filed with Secy. of State of NY copy of any process against the LLC Authority filed with Secy. of State of NY NY County. Principal business address: (SSNY) on 6/24/08. Office location: NY served upon him/her to The LLC, C/O (SSNY) on 6/5/08. Office location: NY 1101 Market St., Philadelphia, PA 19107. County. LP formed in Delaware (DE) on Gatsby Enterprises, 347 5th Ave., 16th Fl., County. LLC formed in Delaware (DE) on LLC formed in DE on 12/20/07. NY Secy. 11/21/07. SSNY designated as agent of NY, NY 10016. General purposes. 7/19/06. SSNY designated as agent of of State designated as agent of LLC upon LP upon whom process against it may be LLC upon whom process against it may whom process against it may be served served. SSNY shall mail process to: NOTICE OF FORMATION of Action be served. SSNY shall mail process to and shall mail process to: c/o CT Goldman Sachs Investment Partners GP, Research NY LLC. Arts. Of Org. filed with princ. bus. loc.: Goldman Sachs Asset Corporation System, 111 8th Ave., NY, NY LLC, 85 Broad St., NY, NY 10004. DE Secy. Of State of NY (SSNY) on 5/08/08. Management L.P., One New York Plaza, 10011, registered agent upon whom address of LP: 1209 Orange St., Office location: NY County SSNY desig- NY, NY 10004. DE address of LLC: 1209 process may be served. DE address of Wilmington, DE 19801. Name/address of nated as agent of LLC upon whom Orange St., Wilmington, DE 19801. Arts. LLC: 1209 Orange St., Wilmington, DE each genl. ptr. available from SSNY. Cert. process against it may be served. SSNY of Org. filed with DE Secy. of State, 19801. Arts. of Org. filed with DE Secy. of of LP filed with DE Secy. of State, shall mail process to principal business Townsend Bldg., Dover, DE 19901. State, 401 Federal St., Dover, DE 19901. Townsend Bldg., Dover, DE 19901. location: 330 W 72nd St., NY, NY 10023. Purpose: any lawful activity. Purpose: any lawful activity. Purpose: any lawful activity. Purpose: Any lawful activity.

28 | Crain’s New York Business | July 28, 2008 nb30p28-30cls.qxp 7/24/08 11:36 AM Page 29

Crain's Classified is not responsible forCrain's corrupt Classified files submitted is not responsible by client or for adsCrain's corrupt run under Classified files the submitted wrong is not subheading. responsible by client or for adsCrain's corrupt run under Classified files the submitted wrong is not subheading. responsible by client or for adsCrain's corrupt run under Classified files the submitted wrong is not subheading. responsible by client or for ads corrupt run under files the submitted wrong subheading. by client or ads run under the wrong subheading.

PUBLIC & LEGAL NOTICES

Notice of Formation of 36 BEDFORD LLC. NOTICE OF FORMATION of ABILTO LLC. BLINK ENTERTAINMENT, LLC, a foreign Name of LLC: TDF BRUCKNER, LLC. Notice of Qualification of Goldman Sachs Arts. of Org. filed with Secy. of State of Arts. Of Org. filed with Secy. Of State of Limited Liability Company (LLC) filed with Articles of Org. filed Dept. of State of NY Global Alpha Employee Fund, LLC. Crain's Classified is not responsible forN.Y. corrupt (SSNY) files on 4/13/07. submitted Office bylocation: client or adsN.Y. run (SSNY) under on the6/03/08. wrong Office subheading. location: Crain'sthe Sec of Classified State of NY is on not 5-29-08. responsible NY foron corrupt 5/21/08. files Office submitted location in NY: by New client or adsAuthority run under filed with the Secy. wrong of State subheading. of NY NY County. SSNY designated as agent of York County. Secy. of State designated as (SSNY) on 6/5/08. Office location: NY Crain'sNew York Classified County. SSNY is notdesignated responsible as forOffice corrupt location: files New submitted York County. by clientSSNY or ads run under the wrong subheading. Crain'sLLC upon Classified whom process is not against responsible it may foragent corrupt of LLC files upon submitted whom process by clientagainst or adsis designated run under asthe agent wrong upon whom subheading. agent of LLC upon whom process against County. LLC formed in Delaware (DE) on be served. SSNY shall mail process to it may be served. SSNY shall mail process process against the LLC may be served. it may be served. Sec. of State shall mail 1/27/06. SSNY designated as agent of princ. bus. loc.: c/o The LLC, 45 W. 8th to: National Registered Agents, Inc., 875 SSNY shall mail a copy of any process a copy of process to: c/o The Doe Fund, LLC upon whom process against it may St., 2nd Fl., NY, NY 10011. Purpose: any Ave. of the Americas, Ste 501, NY, NY against the LLC served upon him/her to Inc., 232 East 84th Street, New York, NY be served. SSNY shall mail process to lawful activity. 10001. Principal business location: 880 The LLC, 303 Fifth Ave., Ste. 1606, NY, Crain's10028. Purpose: Classified any lawful is not activity. responsible forprinc. corrupt bus. filesloc.: Goldman submitted Sachs by Asset client or ads run under the wrong subheading. 5th Ave., Ste 5C, NY, NY 10021. Purpose: NY 10016. General purposes. Management L.P., One New York Plaza, Notice of Formation of L & L Realty Holdings Any lawful activity. NAME OF LLC: Palisander Holdings LLC. NY, NY 10004. DE address of LLC: 1209 LLC. Arts. of Org. filed with Secy. of State of Notice of Formation of Cohen Fashion Arts. Of Org. filed with NY Dept. of State Orange St., Wilmington, DE 19801. Arts. Crain's Classified is not responsible forN.Y. corrupt (SSNY) fileson 6/3/08. submitted Office location: by client NY or adsNotice run of under Qualification the wrong of Legg subheading. Mason Optical Store No. 246, LLC. Arts. of Org. on 5/19/08. Office location: NY County. of Org. filed with DE Secy. of State, County. SSNY designated as agent of LLC Crain's Classified is not responsible forSSNY corrupt designated files submittedas agent of LLC by upon client or ads run under the wrong subheading. Crain'sGlobal Asset Classified Allocation, is LLC. not responsibleAuthority forfiled corrupt with Secy. files ofsubmitted State of NY (SSNY) by client on or ads run under the wrong subheading. Townsend Bldg., Dover, DE 19901. upon whom process against it may be filed with NY Sec. of State (SSNY) 6/6/08. Office location: NY County. SSNY whom process against it may be served Purpose: any lawful activity. served. SSNY shall mail process to: c/o 6/25/07.Juris. of org: DE filed: 10/11/06 designated as agent of LLC upon whom and shall mail process to: Daniel Harrison, Notice of Qualification of Atticus Moses & Singer LLP, Attn: Daniel S. Rubin, NY off. loc. in NY Co. SSNY designated as process against it may be served. SSNY 55 East 9th Street, Apt. 14BC, NY, NY 405 Lexington Ave., NY, NY 10174. Purpose: agent of LLC upon whom process may be shall mail process to: Corporation Service 10003. Purpose own and manage real Fundamental Holdings, LLC. Authority filed Crain'sany lawful Classified activity. is not responsible forserved. corrupt SSNY files shall submitted mail copy of by process client or adsCo., run 80 State under St., the Albany, wrong NY subheading.12207. estate and other investments. with Secy. of State of N.Y. (SSNY) on to: Nat. Reg. Agents Inc., 875 Avenue of Purpose: any lawful activity. 5/30/08. Office location: NY County. LLC Notice of Formation of Elite Home the Americas, Ste 501, NY, NY 10001. Notice of Formation of Manhattan formed in Delaware (DE) on 5/20/08. SSNY Services, LLC. Arts. of Org. filed with LLC’s principal address: 399 Park Ave, Notice of Qualification of Talos Investment Dermatology, PLLC. Arts. of Org. filed designated as agent of LLC upon whom Crain's Classified is not responsible forSecy. corrupt of State files of NY submitted (SSNY) on by 5/9/08. client or adsNY, run NY 10022. under Arts the of wrong org. on subheading. file with with NY Dept. of State on 7/11/08. Office process against it may be served. SSNY Office location: NY Co. SSNY designated Management LLC. Authority filed with NY SSDE, Div of Corps, PO Box 898, Dover, Crain'sDept. of State Classified on 6/16/08. is not Office responsible location: forlocation: corrupt NY files County. submitted Secy. of State byclient desig- or adsshall run mail under process the to: wrongThe LLC, subheading. 767 Fifth as agent of LLC upon whom process DE 19903 Purpose: Any lawful purpose. Crain's Classified is not responsible for corrupt files submitted by client or ads run under the wrong subheading. NY County. Principal business address: nated as agent of PLLC upon whom Ave., 12th Fl., NY, NY 10153. DE address against it may be served. SSNY shall mail process against it may be served and of LLC: Corporation Service Co., 2711 process to: Diane Schottenstein, 165 MAIDMAN REALTY GROUP LLC, a 570 Lexington Ave., NY, NY 10022. LLC formed in Delaware (DE) on 6/14/07. NY shall mail process to the principal busi- Centerville Rd., Ste. 400, Wilmington, DE West End Ave., Apt. 4D, NY, NY 10023. domestic Limited Liability Company (LLC) ness addr.: 71 Park Ave., Ste. 1A, NY, NY 19808. Arts. of Org. filed with DE Secy. of filed with the Sec of State of NY on 5-1- Secy. of State designated as agent of LLC Purpose: any lawful activities. 10016. Purpose: practice the profession State, P.O. Box 898, Dover, DE 19903. 08. NY Office location: New York County. upon whom process against it may be Crain's Classified is not responsible for corrupt files submitted by client or ads run under the wrong subheading. of medicine. Purpose: any lawful activity. Notice of Qualification of Anthion Partners, SSNY is designated as agent upon whom served and shall mail process to: c/o CT Corporation System, 111 8th Ave., NY, NY LP, App. for Auth. filed Sec’y of State process against the LLC may be served. Notice of Formation of Spoon Foods NYC Notice of Formation RCM and AJM Family Crain's Classified is not responsible for10011, corrupt registered files submittedagent upon whom by client or ads run under the wrong subheading. (SSNY) 3/28/08. Office location: NY SSNY shall mail a copy of any process LLC. Arts. of Org. filed with NY Dept. of LLC No. 1 art. of org. filed Secy. of State County. LP org. in DE 3/27/08. SSNY des- against the LLC served upon him/her to Crain'sprocess may Classified be served. is DE not address responsible of forCrain'sState corrupt on Classified7/10/08. files submittedOffice is notlocation: responsible by NY client or for adsNY corrupt run(SSNY) under files6/29/07. the submitted Off. wrong loc. subheading.in by NY clientCo. or ads run under the wrong subheading. ignated as agent of LP upon whom Maidman and Mittelman, LLP, 70 E. 55th LLC: 1209 Orange St., Wilmington, DE County. Secy. of State designated as agent SSNY designated as agent of LLC upon process against it may be served. SSNY St., NY, NY 10022. General purposes. 19801. Arts. of Org. filed with DE Secy. of of LLC upon whom process against it may whom process may be served. SSNY shall Crain's Classified is not responsible forshall corrupt mail copy files of submittedprocess to Attn: by David client or ads run under the wrong subheading. State, 401 Federal St., Dover, DE 19901. be served and shall mail process to the mail copy of process to: c/o Joseph Moradi, 471 Broadway, #2, NY, NY 10013. Notice of Qualification of 767 Fifth Lender Purpose: any lawful activity. principal business address: 17 W. 20th Michaels IV, Esq, Dunnington, Bartholow DE office addr.: c/o CSC, 2711 Centerville LLC. Authority filed with NY Dept. of State St., NY, NY 10011. Purpose: any lawful & Miller, 477 Madison Ave, 12th Fl, NY, Rd., Wilmington, DE 19808. Cert. of LP on on 6/2/08. Office location: NY County. Notice of Qualification of PAC FIRST activity. NY 10022. Purpose: Any lawful purpose. file: SSDE, Townsend Bldg., Dover, DE Principal business address: 800 Boylston PROPERTIES LIMITED LIABILITY COM- 19901. Name/addr. of each gen. ptr. avail. St., Ste. 1900, Boston, MA 02199. LLC PANY. Authority filed with Secy. of State Notice of Formation of Trade X Media, Notice of Qualification of Canoe Ventures, at SSNY. Purpose: any lawful activities. formed in Delaware (DE) on 5/29/08. NY of N.Y. (SSNY) on 4/8/08. Office location: LLC. Arts. of Org. filed with Secy. of State LLC. Authority filed with NY Dept. of State Secy. of State designated as agent of LLC Crain'sNY County. Classified LLC formed is in not New responsible Jersey forof corrupt N.Y. (SSNY) files on submitted 6/12/08. office by location: client or adson run6/6/08. under Office the location: wrong NY subheading.County. Notice of Qualification of Buffalo upon whom process against it may be (NJ) on 3/14/08. SSNY designated as NY County. SSNY designated as agent of Principal business address: 333 3rd Ave., Resources, LLC. Authority filed with NY served and shall mail process to: c/o CT agent of LLC upon whom process against LLC upon whom process against it may NY, NY 10010. LLC formed in Delaware Dept. of State on 6/26/08. NYS fictitious Corporation System, 111 8th Ave., NY, NY it may be served. SSNY shall mail process be served. SSNY shall mail process to: (DE) on 4/1/08. NY Secy. of State designat- name: Buffalo Resources Exploration, LLC. to: 2 WFC, Ste. 36001, 225 Liberty St., Crain's Classified is not responsible forCrain's10011, corrupt registered Classified files submittedagent is upon not responsiblewhom by client or for ads corrupt run under files the submitted wrong subheading. by client or adsRobert run N. under Solomon, the Esq., wrong 1212 subheading. Avenue of ed as agent of LLC upon whom process Office location: NY County. LLC formed in process may be served. DE address of NY, NY 10281. NJ address of LLC: Zhiyu the Americas, 18th Fl., NY, NY 10036. against it may be served and shall mail NV on 5/25/06. NY Secy. of State desig- LLC: c/o The Corporation Trust Co., 1209 Hu, Esq., 151 Washington Ave., Edison, Purpose: any lawful activity. process to: c/o CT Corporation System, nated as agent of LLC upon whom Orange St., Wilmington, DE 19801. Arts. NJ 08817. Arts. of Org. filed with NJ Crain's Classified is not responsible for111 corrupt 8th Ave., files NY, NY submitted 10011, registered by client or ads run under the wrong subheading. process against it may be served and shall of Org. filed with DE Secy. of State, Division of Revenue, 225 West State St., Notice of Qualification of TS TRYLONS, agent upon whom process may be served. 3rd Fl., Trenton, NJ 08608. Purpose: any mail process to: c/o CT Corporation Loockerman & Federal Sts., Dover, DE L.L.C. Authority filed with Secy of State of DE address of LLC: c/o The Corporation lawful activity. Crain's Classified is not responsible forSystem, corrupt 111 files 8th Ave., submitted NY, NY 10011, by client reg- or ads19901. run Purpose: under the any wronglawful activity. subheading. NY (SSNY) on 07/10/08. Office location: Trust Co., 1209 Orange St., Wilmington, istered agent upon whom process may be New York County. LLC formed in DE 19801. Arts. of Org. filed with DE Secy. served. NV and principal business Notice of Qualification of Lyrical Long-Only Notice of Qualification of Liberty Harbor, Delaware on 06/16/08. SSNY designated of State, 401 Federal St., Dover, DE 19901. Value Partners LP. Authority filed with NY address: 112 N. Curry St., Carson City, NV LLC. Authority filed with Secy. of State of as agent of LLP upon whom process Dept. of State on 7/7/08. Office location: Purpose: any lawful activity. 89703. Arts. of Org. filed with NV Secy. of NY (SSNY) on 6/5/08. Office location: NY against it may be served. SSNY will mail NY County. LP formed in DE on 6/30/08. State, 202 N. Carson St., Carson City, NV County. LLC formed in Delaware (DE) on process to: National Registered Agents, Notice of Formation of Peak Property NY Secy. of State designated as agent of 89701. Purpose: all lawful purposes. 12/8/06. SSNY designated as agent of Inc., 875 Avenue of the Americas, Suite Services LLC. Arts. of Org. filed with LP upon whom process against it may be LLC upon whom process against it may 501. New York, NY 10001. National Secy. of State of NY (SSNY) on 6/18/08. HIMMA LLC, Articles of Org. filed N. Y. served and shall mail process to the prin- Crain's Classified is not responsible for corrupt files submitted by client or ads run under the wrong subheading. be served. SSNY shall mail process to Registered Agents, Inc. is the Registered Office location: NY County. SSNY desig- Sec. of State (SSNY) 24th day of April, cipal business addr.: c/o Lyrical Partners, princ. bus. loc.: Goldman Sachs Asset Agent as well. Address required to be nated as agent of LLC upon whom Crain's2008. Office Classified in New York is notCo. at responsible 131 for corrupt files submitted by client or adsL.P., run 405 under Park Ave., the 6th wrong Fl., NY, subheading. NY 10022, Management L.P., One New York Plaza, Crain's Classified is not responsible formaintained corrupt filesin home submitted jurisdiction: by 160 client or adsprocess run underagainst theit may wrong be served. subheading. SSNY Varick Street, Suite 1026, New York, New Attn: Jeffrey A. Keswin, regd. agt. upon NY, NY 10004. DE address of LLC: 1209 Greentree Drive, Ste. 101, Dover, DE shall mail process to princ. bus. loc.: 65 York 10013. SSNY design. agt. upon whom process may be served. DE address Crain'sOrange St., Classified Wilmington, is notDE 19801. responsible Arts. for corrupt files submitted by client or ads19904. run Arts under of organization the wrong filed subheading. with Del whom process may be served. SSNY shall of LP: c/o The Corporation Trust Co., 1209 E. 55th St., 18th Fl., NY, NY 10022. Crain's Classified is not responsible for corrupt files submitted by client or adsof Org. run filed under with the DE wrongSecy. of subheading.State, Secretary of State, Div of Corporations, mail copy of process to 131 Varick Street, Orange St., Wilmington, DE 19801. Purpose: any lawful activity. Townsend Bldg., Dover, DE 19901. John G. Townsend Bldg. Federal & Duke Suite 1026, New York, New York 10013. Name/addr. of genl. ptr. available from NY Purpose: any lawful activity. of York Streets, P.O. Box 898, Dover, DE Notice of Formation of UWS VENTURES Reg. Agt. upon whom process may be Secy. of State. Cert. of LP filed with DE 19903. Purpose: Any lawful purpose LLC, a domestic LLC. Arts. of Org. filed Secy. of State, 401 Federal St., Dover, DE served: Spiegel & Utrera, P.A., P.C. 1 Name of LLC: EGL ASSOCIATES, LLC. with the SSNY on 04/22/08. Office loca- 19901. Purpose: any lawful activity. Crain's Classified is not responsible for corrupt files submitted by client or ads run under the wrong subheading. Maiden Lane, NYC 10038 1 800 576-1100 Articles of Org. filed Dept. of State of NY NOTICE OF FORMATION of TAMUNANGUE, tion: NY County. SSNY has been designat- Purpose: Any lawful purpose. LLC. Arts. Of Org. filed with Secy. Of State on 6/13/08. Office location in NY: New Notice of Formation of STRANGE CORE ed as agent upon whom process against York County. Principal bus. loc.: 667 of N.Y. (SSNY) on 6/28/07. Office location: the LLC may be served. SSNY shall mail a Notice of Formation of Metropolitan PRODUCTIONS, LLC. Arts. of Org. filed Madison Avenue, New York, NY 10021. New York County. SSNY designated as copy of process to: Waqar Samad, PO Advisory Group, LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on Crain's Classified is not responsible forSecy. corrupt of State files designated submitted as agent by clientof LLC or adsCrain's run under Classified the wrong is not subheading. responsible foragent corrupt of LLC files upon submitted whom process by against client or adsBox run 250642, under NY, the NY wrong10025. Purpose: subheading. Any with NY Dept. of State on 5/6/08. Office 06/19/08. Office location: New York upon whom process against it may be it may be served. SSNY shall mail process Lawful Purpose. location: NY County. Secy. of State desig- County. Principal business location: c/o served. Sec. of State shall mail a copy of to: c/o Lois M. Vitti, Esq., 12 Perry Street, nated as agent of LLC upon whom Apple Core Holdings, 1450 Broadway, Crain's Classified is not responsible for corrupt files submitted by client or adsCrain'sprocess run underto Classified c/o Howard the wrong is Guberman, not subheading. responsible 667 for corrupt files submitted by client or ads2C, runNY, NY under 10014. the Date wrong of Dissolution: subheading. Notice of Qualification of Third Avenue process against it may be served and 40th Floor, New York, NY 10018. SSNY Madison Avenue, New York, NY 10021. 12/31/2095. Principal business location: Buyer LLC. Authority filed with Secy. of shall mail process to the principal busi- designated as agent of LLC upon whom Purpose: any lawful activity. 317 Pavonia Ave., #8, Jersey City, NJ State of NY (SSNY) on 12/4/07. Office ness address: 630 5th Ave., Ste. 2000, process against it may be served. SSNY 07302. Purpose: Any lawful activity. location: NY County. LLC formed in NY, NY 10111, Attn: Stefan Miller, regis- shall mail process to: c/o Apple Core Delaware (DE) on 11/21/07. SSNY desig- tered agent upon whom process may be Notice of Qualification of Wolfensohn Capital Holdings, 1450 Broadway, 40th Floor, New NOTICE OF FORMATION of JCP VENTURES nated as agent of LLC upon whom served. Purpose: any lawful activity. Partners Holdings, L.P. Authority filed with York, NY 10018. Purpose: Any lawful activity. LLC. Arts. Of Org. filed with Secy. Of State process against it may be served. SSNY Secy. of State of NY (SSNY) on 4/17/08. of N.Y. (SSNY) on 6/17/08. Office loca- shall mail process to: c/o National Notice of Qualification of PEQP1B1, L.L.C. Office location: NY County. Princ. bus. loc.: Notice of Qualification of J.H. Ferguson & tion: New York County. SSNY designated Registered Agents, Inc., 875 Avenue of Authority filed with NY Dept. of State on 1350 Ave. of the Americas, Ste. 2900, NY, Associates, LLC. Authority filed with Secy. as agent of LLC upon whom process the Americas, Ste. 501, NY, NY 10001. 5/30/08. Office location: NY County. LLC NY 10019. LP formed in Delaware (DE) on of State of NY (SSNY) on 6/18/08. Office against it may be served. SSNY shall mail Address to be maintained in DE: 160 formed in Delaware (DE) on 1/31/08. NY 4/7/08. SSNY designated as agent of LP location: NY County. LLC formed in process to: 400 E 70th St., Suite 803, NY, Greentree Dr., Ste. 101, Dover, DE 19904. Secy. of State designated as agent of LLC upon whom process against it may be Illinois (IL) on 12/31/02. SSNY designat- NY 10021. Principal business location: Arts. of Org. filed with DE Secy. Of State, upon whom process against it may be served. SSNY shall mail process to: c/o ed as agent of LLC upon whom process 400 E 70th St., Suite 803, NY, NY 10021. 401 Federal St., Ste 4., Dover, DE 19901 . served and shall mail process to: c/o CT Corporation Service Company (CSC), 80 against it may be served. SSNY shall mail Purpose: Any lawful activity Purpose: any lawful activities. Corporation System, 111 8th Ave., NY, NY State St., Albany, NY 12207, registered agent process to: c/o National Registered 10011, registered agent upon whom upon whom process may be served. DE Agents, Inc., 875 Avenue of the Americas, process may be served. DE address of address of LP: c/o CSC, 2711 Centerville Ste. 501, NY, NY 10001. Address of the LLC: c/o The Corporation Trust Co., 1209 Rd., Ste. 400, Wilmington, DE 19808. principal office: 1800 Sherman Place, Ste. Orange St., Wilmington, DE 19801. Cert. Name/address of each genl. ptr. available 402, Evanston, IL 60201. Arts. of Org. of Form. filed with DE Secy. of State, from SSNY. Cert. of LP filed with DE Secy. of filed with IL Secy. Of State, 213 State www.crainsnewyork.com Townsend Bldg., Dover, DE 19901. State, 401 Federal St., Dover, DE 19901. Capitol, Springfield, IL 62756. Purpose: Purpose: any lawful activity. Purpose: any lawful activity. any lawful activities.

July 28, 2008 | Crain’s New York Business | 29 CNYB 07-28-08 A 30 7/24/2008 6:40 PM Page 1

SMALL BUSINESS

“Our experience [is] that many organizations do not have the best AT A GLANCE Firm uncovers treasure hiring policies or methods in place for collecting the appropriate data STERLING for timely and accurate search re- INFOSYSTEMS INC. sults,” says Alla Schay, Sterling’s screening job seekers chief operating officer. FOUNDED 1975 Direct reflection REVENUES $75 million in 2007; ly but can’t afford to make mistakes business depends on keeping clients $85 million to $90 million Sterling Infosystems with personnel. happy, and Sterling’s retention rate last year, Con Edison issued a call projected for this year posts double-digit “Obviously,you don’t want a con- is 96%. for bids for screening and ended up growth for 7 years victed sex offender working in your “So few companies care [and] staying with Sterling because of EMPLOYEES 750 children’s department,” says Charlie take the message about what’s real- “their responsiveness and their cus- CLIENTS More than 6,000, Maier, H&M’s security manager for tomer service,” says Timothy Indi- BY ERIKA RASMUSSON JANES ranging from retail to financial U.S. operations. Recently, H&M veri, the utility’s section manager of services firms asked Sterling to develop an interac- ‘Many recruitment. n an average year, Swedish- tive spreadsheet to further speed the It’s unclear if Sterling’s high- MOST-REQUESTED SERVICES based clothing retailer H&M delivery of information to human reorganizations touch, high-tech approach will con- Social security trace, address hires more than 3,000 em- sources staff at stores. tinue to pay off in the form of revenue verification, criminal conviction ployees for its U.S. stores— “They’re very much attuned to do not have the growth. Its boom has mirrored that search currently 152 and multiply- the customer’s needs and willing to best hiring of the broader economy the past few Iing. Statistics indicate that some of adapt their business to assist the cus- years, when many companies could- the applicants for those jobs are ly- tomer,” Mr. Maier says. n’t add staff quickly enough. criminal record searches come up ing about something, even a crimi- Sterling has had to adapt to policies’ “Our business is a direct reflec- positive 3% to 4% of the time. nal record. But which ones? achieve such growth. tion of hiring practices and labor In general,Sterling finds discrep- Enter Manhattan-based Ster- Chief Executive William statistics,” Mr. Seldon concedes. ancies in such areas as employment ling Infosystems Inc. The THE Greenblatt founded Ster- But it’s also a function of some history and educational credentials company—which ferrets out GRADUATES ling in 1975 as a polygraph people’s propensity to lie, which in about 15% of applications. job candidates’ lies, padded Part of a series tester.That hiring practice ly important and push it all the way probably won’t change with the on firms that COMMENTS? [email protected] résumés and drug use on be- have outgrown was outlawed in the mid- down to the lowest level of employ- economy. At H&M, for instance, half of many of the country’s the ranks of 1980s, and he reinvented ee,” Mr. Greenblatt says. “We care largest corporations—has small businesses the firm as a pre-employ- about the customer—that’s first and become one of the fastest- ment screener. foremost in our minds.” growing firms in its field. “My instincts told me Employees have an incentive to REPRINTS OF CRAIN STORIES Proprietary computer sys- my customers [still] need- ensure high customer satisfaction CRAIN’S NEW YORK BUSINESS offers reprints of the articles it publishes. tems and an obsessive focus ed something,” says Mr. and loyalty: Part of their compensa- The reprints can include photographs that accompany the story. To obtain an on expansion helped Sterling’s rev- Greenblatt, whose self-described tion is based on meeting company estimate of the price and the turnaround time for a reprint, please contact enues surge 50% a year from 2002 maniacal focus on growth has objectives in both categories. Kristi Fulkerson at The YGS Group, (717) 399-1900, ext. 144, or through 2006 and 32% last year,ver- helped propel the repositioned en- Staffers also receive such perks as [email protected]. sus overall industry revenue growth terprise. Starbucks gift cards on their birth- Readers wishing to make their own reprints or to post a story on a Web of 18% in 2007. days and the use of a corporate vaca- Driven to succeed site must pay $350 for the use of the Crain’s copyright; the fee for nonprofits The speed with which Sterling tion house in Florida. is $195. Send a letter describing the article and how it will be used, along performs—it completes criminal “if you looked up ‘type A person- Sterling evaluates a client’s entire with a check, to Jill Bottomley at Crain’s New York Business, 711 Third Ave., record searches within 15 hours— ality’ in the dictionary, you’d see his hiring operation—everything from and its reliability are selling points picture,” says Richard Seldon, Ster- Fair Credit Reporting Act compli- New York, NY 10017. For more information, please call Ms. Bottomley at for companies like H&M, which ling’s president, of his boss. ance to applicant data collection to (212) 210-0282. needs to fill empty positions quick- Being successful in a mature internal recruitment costs.

Crain's Classified is not responsible forCrain's corrupt Classified files submitted is not responsible by client or for adsCrain's corrupt run under Classified files the submitted wrong is not subheading. responsible by client or for adsCrain's corrupt run under Classified files the submitted wrong is not subheading. responsible by client or for adsCrain's corrupt run under Classified files the submitted wrong is not subheading. responsible by client or for ads corrupt run under files the submitted wrong subheading. by client or ads run under the wrong subheading.

PUBLIC & LEGAL NOTICES

Notice of Qualification of Agile Partners Notice of Formation of Reade Street Studio, NOTICE OF FORMATION of BCDR Solutions Notice of Qualification of Dada Notice of Qualification of Royalty Pharma Technologies, LLC. Authority filed with LLC. Article of Organization filed with the LLC. Article of Organization filed with the Entertainment, LLC. Authority filed with US Partners 2008, LP. Authority filed with Secy. of State of NY (SSNY) on 6/3/08. Secretary of State NY(SSNY) on 9/04/2007. Secretary of State of NY (SSNY) on Secy. of State of NY (SSNY) on 6/12/08. Secy. of State of NY (SSNY) on 6/2/08. Office location: NY County. LLC formed in Office location New York County. SSNY 03/04/08. Office location: NY County. SSNY Office location: NY County. Princ. bus. Office location: NY County. LP formed in Delaware (DE) on 12/19/07. SSNY desig- has been designated as agent upon whom has been designated as agent upon whom loc.: 225 W. 34th St., Ste. 501, NY, NY Delaware (DE) on 3/26/08. SSNY designated as agent of LLC upon whom process against it may be served. The Post process against it may be served. The Post 10122. LLC formed in Delaware (DE) on nated as agent of LP upon whom process process against it may be served. SSNY Office address to which the SSNY shall mail Office address to which the SSNY shall mail 8/6/07. SSNY designated as agent of LLC against it may be served. SSNY shall mail shall mail process to: c/o National a copy of any process against the LLC a copy of any process against the LLC upon whom process against it may be process to princ. bus. loc.: 110 E. 59th Registered Agents, Inc., 875 Avenue of served upon him/her is C/O the LLC 103 served upon him is C/O the BCDR served. SSNY shall mail process to: c/o St., Ste. 3300, NY, NY 10022. DE address Crain's Classified is not responsible forCrain'sthe corrupt Americas, Classified files Ste. submitted 501, is NY, not NY responsibleby 10001. client or for adsCrain'sReade corrupt run Street, under Classified files 4th the Floor. submitted wrong is New not York subheading. responsible by NY client or for adsCrain'sSolutions corrupt run under ClassifiedLLC, files 151 the submitted 1st wrong is Avenue not subheading.responsible #238, by client N.Y., or for adsCrain'sCorporation corrupt run under Classified files Service the submitted Co., wrong is not80 State subheading. responsible by St., client or for adsof corrupt LP: run c/o under Corporation files the submitted wrong Service subheading. byCo., client 2711 or ads run under the wrong subheading. Address to be maintained in DE: 160 10013. Date of Dissolution: N/A. Purpose of N.Y., 10003. Date of Dissolution: No specif- Albany, NY 12207. DE address of LLC: Centerville Rd., Ste. 400, Wilmington, DE Greentree Dr., Ste. 101, Dover, DE 19904. LLC: to engage in any lawful act or activity. ic date. Purpose of LLC: to engage in any 2711 Centerville Rd., Ste. 400, 19808. Name/address of each genl. ptr. Arts. of Org. filed with DE Secy. Of State, Street address of Principal business lawful act or activity. Street address of Wilmington, DE 19808. Arts. of Org. filed available from SSNY. Cert. of LP filed with 401 Federal St., Ste. 4., Dover, DE 19901 . location is: 103 Reade Street, 4th Floor. Principal Business location is: 151 1st with DE Secy. of State, PO Box 898, Dover, DE Secy. of State, Townsend Bldg., Dover, Purpose: any lawful activities. New York, NY 10013. Avenue #238, N.Y., N.Y., 10003 DE 19903. Purpose: any lawful activity. DE 19901. Purpose: any lawful activity.

Notice of Qualification of 932 Carroll LLC. Notice of Qualification of 111 15 ST LLC. Notice of Qualification of 1402 Sterling Notice of Qualification of 2255 Concourse Notice of Qualification of 382 Eastern Authority filed with NY Dept. of State on Authority filed with NY Dept. of State on LLC. Authority filed with NY Dept. of State LLC. Authority filed with NY Dept. of State LLC. Authority filed with NY Dept. of State 6/6/08. Office location: NY County. LLC 6/6/08. Office location: NY County. LLC on 6/6/08. Office location: NY County. LLC on 6/6/08. Office location: NY County. LLC on 6/6/08. Office location: NY County. LLC formed in Delaware (DE) on 5/30/08. NY formed in Delaware (DE) on 5/30/08. NY formed in Delaware (DE) on 5/30/08. NY formed in Delaware (DE) on 5/30/08. NY formed in Delaware (DE) on 5/30/08. NY Secy. of State designated as agent of LLC Secy. of State designated as agent of LLC Secy. of State designated as agent of LLC Secy. of State designated as agent of LLC Secy. of State designated as agent of LLC upon whom process against it may be upon whom process against it may be upon whom process against it may be upon whom process against it may be upon whom process against it may be served and shall mail process to the prin- served and shall mail process to the prin- served and shall mail process to the prin- served and shall mail process to the prin- served and shall mail process to the principal business address: c/o Hudson Realty cipal business address: c/o Hudson Realty cipal business address: c/o Hudson Realty cipal business address: c/o Hudson Realty cipal business address: c/o Hudson Realty Capital LLC, 250 Park Ave. So., 3rd Fl., Capital LLC, 250 Park Ave. So., 3rd Fl., Capital LLC, 250 Park Ave. So., 3rd Fl., Capital LLC, 250 Park Ave. So., 3rd Fl., Capital LLC, 250 Park Ave. So., 3rd Fl., NY, NY 10003. DE address of LLC: c/o NY, NY 10003. DE address of LLC: c/o NY, NY 10003. DE address of LLC: c/o NY, NY 10003. DE address of LLC: c/o NY, NY 10003. DE address of LLC: c/o Corporation Service Co., 2711 Centerville Corporation Service Co., 2711 Centerville Corporation Service Co., 2711 Centerville Corporation Service Co., 2711 Centerville Corporation Service Co., 2711 Centerville Rd., Ste. 400, Wilmington, DE 19808. Rd., Ste. 400, Wilmington, DE 19808. Rd., Ste. 400, Wilmington, DE 19808. Rd., Ste. 400, Wilmington, DE 19808. Rd., Ste. 400, Wilmington, DE 19808. Arts. of Org. filed with DE Secy. of State, Arts. of Org. filed with DE Secy. of State, Arts. of Org. filed with DE Secy. of State, Arts. of Org. filed with DE Secy. of State, Arts. of Org. filed with DE Secy. of State, P.O. Box 898, Dover, DE 19903. Purpose: P.O. Box 898, Dover, DE 19903. Purpose: P.O. Box 898, Dover, DE 19903. Purpose: P.O. Box 898, Dover, DE 19903. Purpose: P.O. Box 898, Dover, DE 19903. Purpose: any lawful activity. any lawful activity. any lawful activity. any lawful activity. any lawful activity.

30 | Crain’s New York Business | July 28, 2008 CNYB 07-28-08 A 31 7/24/2008 6:34 PM Page 1

BUSINESS CORPORATE LADDER Jay-Z’s unexpected successor at Def Jam Records PAGE 33 buck ennis

GOTHAM GIGS Tapping to the top RAY HESSELINK, 38, is no one- MoreMore seatsseats atat tabletable trick pony. As a self-employed choreographer, director, Unlikely poker players spend time, instructor and performer, he works to share his passion with New Yorkers for tap money to get in big games dancing and all aspects of performing. LATE START He taught himself to tap at age 19, after losing out at an audition. In 2000, the California native moved to New York to pursue a career in dancing. MAKING IT BIG Mr. Hesselink teaches weekly classes at Steps on Broadway and Broadway Dance Center. He offers private coaching lessons at $85 an hour and recently dubbed the steps of a tap- dancing elephant in a General Electric commercial, to the tune of “Singin’ in the Rain.” SHOWTIME Currently, Mr. Hesselink is working as tap dance consultant for the upcoming Broadway musical Billy Elliot. He hopes to ultimately work full-time on Broadway.“Trying to get your foot in the door is the hardest part,” he says. —sarah studley EXPERT OPINIONS HOW CAN I BOOST MY CAREER THIS SUMMER? the summer is a great time to advance your career. Get your résumé into tip-top shape, consult with colleagues and consider a proofreader to ensure that it’s properly edited. Network whenever istockphoto you can, and always have your WORLD SERIES contact information ready. Be BY GALE SCOTT proactive and ask companies OF POKER 2008 for an informational interview. oker has become a national pastime. But for a growing number of At Harrah’s Las Vegas In a rough economy, temp New Yorkers, it is an obsession. Much like dedicated Nascar fans, these MAY 30-JULY 14 agencies are hot—you’ll get to normally sober-minded, successful businesspeople spend their time and make some money and increase your chances of being money traveling to poker competitions.They watch it on TV, play it online and pay for courses to improve their skills.They just cannot get considered for applicable jobs. 6,844ENTRANTS —betsy richards enough of the game. Director of career resources That includes Lana Maier, a corporate litigator in Manhattan. When Kaplan University asked if the game is addictive, she says, “It would be easier for me to quit $180M drinking, to give up alcohol, than it would be to stop playing poker. I IN PRIZES really, really enjoy it.” She was interviewed by phone from Las Vegas, in between events at the World Series of Pok- 55 er, where she was taking time off from her law practice to spend several weeks in competition. EVENTS No one knows exactly how many poker devotees live in the city. See MORE SEATS on Page 32 FINALS: NOV. 9-10

istockphoto P

July 28, 2008 | Crain’s New York Business | 31 CNYB 07-28-08 A 32 7/24/2008 6:36 PM Page 1

BUSINESS LIVES

lose, they keep playing, and their obsession with getting their money More seats at table back can take over their daily lives.” Ms. Maier says she is not wor- Continued from Page 31 City. But in a commitment to the ried.“I’m definitely up,”she says,re- But more than 41,000 New Yorkers game that is ratcheting up, he has ferring to a favorable win/loss tally. have joined the Poker Players Al- begun spending thousands of dol- That’s a common refrain among liance, a lobbying group made up lars to fly to World Series of Poker players interviewed. And Ms. mostly of online players who oppose venues, held not just in Las Vegas Maier’s social life has improved federal restrictions on playing In- but in places like Tunica, Miss. His since she discovered online poker ternet poker for money. winnings have not quite kept up three years ago and quickly graduat- According to the World Series of with his expenses, he says. ed to playing live poker games. She Poker event sponsor, Harrah’s En- But he’s getting better all the met her steady boyfriend on the tertainment, 1,043 New Yorkers time, and believes that his poker poker circuit, and now they travel this year—up from 921 last year— skills make him better at his job, and play together. entered the six-week semifinals of teaching him to read people. the tournament. Still more New Wall Street’s denizens have long Skill, not luck

Yorkers showed up to watch the been likened to poker players, bet- impdi 2008 wsop she and mr.deluna share a belief event or to play poker in side games ting and bluffing in a high-stakes BOB DELUNA (right) of the United Hospital Fund is known in poker circles as The Hemorrhoid. that seems to be the poker player’s and satellite tournaments held at game. But the analogy seems to be mantra:“Poker’s not gambling,”Mr. other casinos. popping up now with those who, deLuna says. “It is a skill.” The competitors included Man- like policy wonk Mr. deLuna, work Hold ’Em and Omaha as a path to- world-class professional like Devil These serious amateurs pride hattan resident Bob deLuna,known in fields not often associated with ward self-improvement. “Poker Fish was worth the $3,000,says Mr. themselves on being able to read to colleagues as a mild-mannered risk and nerve. teaches you patience when you don’t Shawe,in a tone of reverence Nascar other players’tics and facial and ver- spokesman for the United Hospital get good cards, how to bluff your fans might use when evoking Dale bal cues, as well as instantly calcu- Fund, a whiz on Medicaid reim- The game’s the thing way into better contract terms and Earnhardt Sr.“It does get your heart lating the odds. bursement payments and the like. at transperfect, a Manhattan- how to sense when the other guy is going,” he says. “If you play one hand, definitely In poker circles, he goes by a handle based translating service, poker- ready to make a deal,” he says. Of course, the poker phenome- it’s a matter of luck who wins,” says that could be on a Medicaid form: obsessed Co-Chief Executive Phil And then there’s that adrenaline non has also raised concerns among Mr. deLuna’s poker buddy Leo The Hemorrhoid. It’s actually a Shawe stops short of calling the surge. His finest moment at the those who treat compulsive gam- Witt, a former portfolio manager tribute from a rival player. game the new golf, but says he of- gaming table came—and went— blers. for J.P.Morgan who also competed “He told me I’m a real pain. He ten plays with co-workers after after he parlayed a $3,000 chip pur- Psychiatrist Carlos Blanco says in the current World Series of Pok- said, ‘You’re like a hemorrhoid,’ ” hours. He also seeks out poker play chase into a $40,000 hand against he has treated scores of poker player tournament. “But after you’ve Mr. deLuna recalls. in casinos. And he’s not just talking Dave Ulliott,a British player known er patients at his Columbia Univer- played a million hands, as most of Indeed, Mr. deLuna has spent about Atlantic City.“New Orleans, as Devil Fish—a delicacy that can sity Medical Center Gambling Dis- us have,the skilled players come out countless weekends at the Fox- Paris, Rome, I can always find a kill you if not prepared correctly. order Clinic. on top.” woods casino in Connecticut,and at game,” he says. After several hands, he lost. But “Many people overestimate their various gambling houses in Atlantic He sees his passion for Texas to play several hands against a abilities,” Dr. Blanco says. “They COMMENTS? [email protected]

32 | Crain’s New York Business | July 28, 2008 CNYB 07-28-08 A 33 7/24/2008 6:44 PM Page 1

BUSINESS LIVES CORPORATE LADDER Shakir Stewart Def Jam’s surprise boss Ear for talent, knack Though baby-faced Mr. Stewart doesn’t have the exalted chief execu- PERSONNEL FILE for marketing propel tive title that his rap star predecessor took, at 6 feet 1 inch, he stands tall in COMPANY Def Jam Records music exec into top his own shoes. In fact, he had quietly TITLE Executive vice president been running the label for months. spot at storied label Long before April, when Mr. Carter AGE 33 left for a $150 million touring and RÉSUMÉ Senior vice president, BY SAMANTHA MARSHALL production deal at Live Nation, Mr. A&R, Def Jam; consultant, A&R, Stewart was a driving force behind Arista/LaFace s soon as word got some of the label’s hottest releases. around last month that MANAGEMENT STYLE Direct, Shakir Stewart had tak- Sound instincts motivational, hands-on en the helm at Def Jam while senior vice president of BIRTH PLACE Oakland, Calif. Records,the music press A&R, he signed two of hip-hop’s FIVE-YEAR GOAL dubbed him “the new Jay-Z”—sug- most dynamic new stars: Young To break at A least one new artist a year gesting that the young music execu- Jeezy and Rick Ross. Alongside Mr. tive had some big shoes to fill. Carter, he also shepherded a pair of “I got some calls when that story the best-selling albums of recent came out,” says Mr. Stewart, point- years: Kanye West’s Graduation and a pipeline of acts, including R&B ing to a recent cover of Billboard. Rihanna’s Good Girl Gone Bad. group Brutha, which will drop its The buzz comes as no surprise. Despite his successes, Mr. Stew- first album later this year, and pop Speculation over who would suc- art takes over at Def Jam at a diffi- chanteuse Karina Pasian,a classical- ceed Shawn “Jay-Z” Carter had cult time for the industry. Several ly trained pianist who sings in seven as more of a businessman. He ma- Though that position ultimately been swirling since December, years of slumping sales have languages. jored in marketing at Morehouse led to his corner office, Mr. Stewart when the rap star-turned-music prompted industry experts to ques- “Shakir’s instincts for searching College in Atlanta and never con- leaves his corporate mode in New mogul announced that he intended tion whether traditional record la- out new artists is talked about sidered a career in the record indus- York most weekends,heading home to leave the label. Names floated for bels will even exist in five years. throughout the industry,” Steve try. But his savvy as a campus con- to Atlanta to spend time with his the job included Jermaine Dupri, Worldwide album sales hit a 20- Bartels, president of parent label Is- cert promoter caught the eye of an two young children and listen to who runs sister label Island Urban year low last year, falling 11% from land Def Jam Music Group. executive at music publisher Hitco, music. Records; Irv Gotti; LL Cool J; and 2006, to $1.86 billion, according to “You have to bet on the right which hired him as creative director. “In Atlanta, it’s all creative,” Mr. Chaka Zulu,Ludacris’manager and the International Federation of the artist,” Mr. Stewart says.“As long as Stewart says. “But I’m in a com- business partner. Few considered a Phonographic Industry. we stay focused on quality artists Georgia on his mind pletely different frame of mind in low-profile company insider like Mr. Stewart plans to stick with and great music, Def Jam will be “i didn’t even want the job,” re- Manhattan.” Mr.Stewart,who officially assumed the tradition of Def Jam, which is alive and kicking.” calls Mr. Stewart, whose accom- the role of executive vice president known for taking a chance on un- His nose for talent notwith- plishments at Hitco include signing COMMENTS? on June 3. known artists. He is now focused on standing, Mr. Stewart views himself Beyoncé. [email protected]

EXECUTIVE MOVES

ACCOUNTING & CONSULTING chief strategist. He had been Stephen B. Selbst, 52, joined as partner. He Bain & Co.: Allen Schaar, 48, was named Distinguished Engineer at IBM. was formerly partner at McDermott Will HOT JOBS partner. He was formerly a senior Drop.io: Chad Stoller, 37, joined as vice & Emery. managing partner at FTI Palladium president of marketing. He was formerly Matthew D. Pace, 47, joined as counsel. Partners. executive director of emerging platforms at He was formerly partner at Duval & Ernst & Young: Howard Roth, 56, was Organic. Stachenfeld. WANTED: CHIEF SUPPLY CHAIN OFFICER promoted to director of real estate, global Inform Technologies: Josh Kirschner,38, Katten Muchin Rosenman: Gary Distell, and Americas, from leader of the was appointed chief marketing officer. He 45, was named partner. He had been a COMPANY Ann Taylor Stores Corp. Northeast real estate practice. had been senior vice president of global senior managing director at Bear Stearns JOB DESCRIPTION Plan and direct all aspects of company’s supply Thomson Reuters: Brian Rhoads, 42, was product development at Marsh. & Co. promoted to managing editor, Americas, chain policies, objectives and initiatives; oversee inventory, from North Asia editor. HOSPITALITY & TOURISM MEDIA & ENTERTAINMENT warehousing, distribution and transportation functions Patina Restaurant Group: Jennifer Brides magazine: Dabee Kaye, 35, joined MOST IMPORTANT TASK Getting the company’s store productivity APPAREL & RETAIL Shurdut, 38, was named general counsel. as advertising director, beauty. She had back on track Limited Brands Inc.: Edwin L. Hofmann, She had been senior vice president and been executive beauty director at Lucky 37, was promoted to associate vice associate general counsel at Primedia Inc. magazine. CREDENTIALS NEEDED Significant experience in supply chain president of store design for Victoria’s Greg Deligdisch, 44, was named vice Getty Images: Caroline Andoscia,46, management in the fashion industry Secret from director of prototype design. president of marketing. He had been joined as vice president of Alison Tranter, 42, was promoted to managing director at Sopexa USA. communications. She had been managing SALARY Ann Taylor’s previous CSCO earned $585,000 in 2007 associate vice president of production and director at BlueCurrent Public Relations. with an additional $500,000 in stock bonuses, according to an sourcing for Victoria’s Secret Direct from LAW Golf World magazine: Matthew Sheehan, April filing with regulators raw materials director. Axiom: Ashwini K. Chhabra, 35, joined as 28, joined as creative services director. He Alex Kuper, 41, was promoted to director practice manager. He had been a senior had been marketing director at Tennis UPSIDE The chance to play a pivotal role in the operation of a of merchandise planning for Victoria’s policy adviser in the Bloomberg magazine. high-profile specialty retailer of women’s apparel, shoes and Secret Beauty from manager of administration. Prevention magazine: Mrinalini Nair,30, accessories that has a market capitalization of $1.4 billion merchandise planning. Edward H. Lee, 36, joined as practice joined as marketing director. She was Leonard Rebo, 40, was promoted to manager. He had been an associate at previously an independent consultant. DOWNSIDE Ann Taylor is in the midst of a turnaround. Earlier this director of package development for Goodwin Proctor. year, the company laid off 180 employees at its headquarters and Victoria’s Secret Beauty from manager of Cohen Pontani Lieberman & Pavane: Alan REAL ESTATE announced plans to shutter nearly 120 stores. package development. Tenenbaum, 45, joined as partner. He had CB Richard Ellis: Steven J. Robinson, 29, —DAMIAN GHIGLIOTTY Patricia Rudner, 29, was promoted to been shareholder at Greenberg Traurig. was promoted to vice president, retail director of package development for Herrick Feinstein: Steven D. Feldman,38, services, from senior associate. Victoria’s Secret Beauty from manager. joined as partner. He was formerly Roshan Shah, 27, was promoted to vice assistant U.S. attorney for the Southern president, global brokerage services, from FINANCE & INSURANCE District of New York. senior associate. position, from senior vice president. had been senior investigator at James ConsumerPowerline Inc.: Michael Mele, CB Richard Ellis Investors: Frank Scavone, Mintz Group. 55, was appointed chief financial officer. 42, was named senior managing director. SERVICES Tri-State Employment Services: Skip EXECUTIVE PROMOTIONS He was formerly chief financial officer at He had been an executive vice president at CTPartners: John Davitt, 36, was named Vaccarino, 58, was named president, human Archive Systems. The fastest way to get an announcement into Ciena Capital. partner. He had been a client partner at resources solutions group. He had been Crain’s is to submit details online. Fill out the Related Companies: Vishaan Chakrabarti, Korn/Ferry International. managing director at Addison Search and HIGH TECH & NEW MEDIA form at www.crainsnewyork.com/submit. The 42, was promoted to executive vice GPW & Co.: Philip Segal, 45, was named Snelling Staffing. Converseon: Mike Moran, 48, was named Executive Moves column is also available online. president of design and planning, a new partner-in-charge and general counsel. He —sarah studley

July 28, 2008 | Crain’s New York Business | 33 CN012220 7/22/08 4:33 PM Page 1

HOW TO LIVE UNITED: JOIN HANDS. OPEN YOUR HEART. LEND YOUR MUSCLE. FIND YOUR VOICE. GIVE 10%. GIVE 100%. GIVE 110%. GIVE AN HOUR. GIVE A SATURDAY. THINK OF WE BEFORE ME. REACH OUT A HAND TO ONE AND INFLUENCE THE CONDITION OF ALL. GIVE. ADVOCATE. VOLUNTEER.

LIVE UNITED™ Want to make a difference? Help create opportunities for everyone in your community. United Way is creating real, lasting change where you live, by focusing on the building blocks of a better life– education, income and health. That’s what it means to Live United. For more, visit LIVEUNITED.ORG. CNYB 07-28-08 A 35 7/24/2008 6:47 PM Page 1

BUSINESS LIVES TABLE TALK by Bob Lape able, plus peel-and-eat shrimp, $3,000. Gulp. tween Central Park West and grilled octopus, and crab cakes But is it fun? You bet, if you can Columbus Avenue), Manhattan. served with Old Bay aïoli. handle it. And if you can get in. (212) 873-8181. Chef Ed Brown’s The mac-cheese-truffle combo new modern American eatery is an is a large plate, great for sharing the COMMENTS? [email protected] elegant and extraordinary experi- rich taste and the $55 price tag.This ence, accomplished and exciting. dish is Vermont white cheddar, corkscrew pasta and Spanish black BEST OF BOB LAPE South Gate truffles, and my wife includes it in www.jumeirahessexhouse.com/ her Last Meal requests. Other popular new-American southgate/ Those truffles also figure in a kitchens: Jumeirah Essex House, 154 Central succulent special of braised-lamb Park South (between Sixth and ravioli with Parmigiano-Reggiano CulinAriane Seventh avenues), Manhattan. and lamb jus. www.culinariane.com (212) 484-5120. The contemporary, There’s a lot to like about other 33 Walnut St., Montclair, N.J. seasonal American cuisine of Chef entrées, including king-size brook (973) 744-0533. A tiny, modern Kerry Heffernan (Eleven Madison trout cooked on a cedar plank and American jewel in a residential Park) stars in a coolly elegant, Tony served with roasted carrots. King part of Montclair boasts some of Chi-designed restaurant overlook- salmon fillet with beluga lentils and the state’s best food. ing Central Park. Tuscan kale hits the spot,and no one should come between me and Dover Allen & Delancey sole with sautéed vegetables and www.allenanddelancey.net hollandaise. At the Waverly, the 115 Allen St. (at Delancey Street), steak is prime, the pork chop is Manhattan. (212) 263-5400. The Berkshire, and the roast chicken is four-star Monteverde team does Amish and organic. The crisp fries double duty with a comfortably arrive in a small brass pot. crowded mecca for new American Desserts ($9) are another slice of food and a warm welcome at the vintage Americana (for 2008):apple early crossroads of immigration. crisp (topped by vanilla gelato), (organic) lemon tart, Bananas Foster Dovetail (with that gelato), and (Vermont www.dovetailnyc.com chèvre) cheesecake. 103 W. 77th St. (between Colum- Treasures abound on the Waver- bus and Amsterdam avenues), SUPERIOR OFFICE ly’s wine list, but they cost a mint. Manhattan. (212) 362-3800. Ele- AVAILABILITIES Sixty-nine bottles are priced at more gant service and wines match the 212.594.2700

buck ennis than $1,000, and only 36 under inspired cooking of ex-Compass CHEF JOHN DELUCIE tweaked a 20-year-old menu found in the floorboards during renovations. $100. The gaudy markups are chefs John Fraser and Vera Tong. breathtaking. An Albarino retailing for $20 sells for $90, and a 2000 Eighty One Chateau Haut-Brion retailing for www.81nyc.com SLGREEN.COM Where ye olde $650 fetches—or aspires to fetch— 45 W. 81st St., Excelsior Hotel (be- meets the A-list Waverly Inn’s diners Bright, engaging waitstaffers move with dispatch and grace to the enjoy comfort classics packed round tables deployed on wide-board floors under beamed with twists like truffles; ceilings. Wood-framed mirrors re- flect the happy clientele digging Marcum & Kliegman LLP big wine markups into John DeLucie’s delicious American comfort food for the Certified Public Accountants & Consultants ne of new york’s well-to-do. THE WAVERLY hottest dining scenes The chef claims that he, Mr. INN & GARDEN is Vanity Fair Editor Carter and partners Sean MacPher- 16 Bank St. (at Waverly Place) Graydon Carter’s Wa- son and Eric Goode found a 20- (212) 253-7900 verly Inn & Garden. year-old menu in the floorboards OSix months into its run, the venera- when they were cleaning up the ble restaurant’s tables are as hard to space. Detailing items like chicken CUISINE American come by as those uptown at Rao’s— potpie, macaroni and cheese, duck à WINES 325 choices, 23 by the and the Village rave has twice as l’orange, steaks and chops, that bill glass many seats. of fare became their blueprint. That at least opens a door of op- After major tweaking,the results DRESS No code portunity to would-be patrons who have become Hudson Valley free- NOISE LEVEL Prodigious Comprehensive assurance, drop by at the earliest possible mo- range chicken potpie, mac-and- PRICE RANGE $21-$55 ment and entreat managing part- cheese with black truffles sliced over advisory and tax solutions. ner Emil Varda for a table. Taking the ensemble tableside, and cast- WINE MARKUP 150%-400% the in-person approach is more iron New York strip steak with sweet CREDIT CARDS All major promising than telephoning: The fingerling potatoes. Unparalleled personal service. Waverly Inn’s phone is rarely an- The small plates ($10 to $17) in- RESERVATIONS Lotsa luck swered. clude pristine oysters on the half HOURS Dinner, Sun.-Mon., Getting in is worth the effort, shell with mignonette, a golden 6-11:45 p.m., Tues.-Sat., 6 p.m.- That’s the bottom line. though, to join the young and beau- oldie. More modern but every bit as 12:45 a.m. tiful as well as the chic salt-and- good are roasted and spiced yellow = Outstanding pepper crowd. That refers to the and red beets paired with Humboldt Visit us at Solutions.MKLLP.com men—the Waverly women seldom Fog cheese, tuna tartare with avoca- = Excellent = Very good show their salt. Celebrities are there do and Dijon emulsion, and grilled = Good NEW YORK (NY) • MELVILLE (NY) • ROSELAND (NJ) • TINTON FALLS (NJ) • GREENWICH (CT) • GRAND CAYMAN (BWI) to see and be seen, but the spot has salmon toro over wild mushrooms. appreciably more to offer. Several appealing salads are avail-

July 28, 2008 | Crain’s New York Business | 35 CN012201 7/15/08 4:39 PM Page 1

This is huge.

Announcing the nation’s only assurance firm focused 24/7 on real estate. To meet the increasingly complex needs of the real estate industry, The Schonbraun McCann Group has spun off its Accounting & Attest practice into a separate new entity, Cornerstone Accounting Group. With over 35 years of experience behind it, and industry-leading CPAs running it, this powerhouse of talent will provide the most in-depth accounting services anywhere to public and private real estate companies. And that is huge.

A UNIQUE FOCUS ON REAL ESTATE.

New York N New Jersey N Florida Email: [email protected] Visit: www.cagllp.com Stanley R. Perla, Managing Partner

Formerly the Accounting & Attest practice of The Schonbraun McCann Group