Battling Mike Bloomberg Don’T Deliver Triumph in 2001 Over Democrat Mark Isn’T a Fluke,Even in a City Where NEW YORK, NEW YORK, P

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TOP STORIES BUSINESS LIVES Project Onetime AIDS Runway’s L.A. star eclipsed by move miffs former employee New Yorkers PAGE 3 ® P. 39 Banker, comic top readers’ list of most influential VOL. XXIV, NO. 40 WWW.CRAINSNEWYORK.COM OCTOBER 6-12, 2008 PRICE: $3.00 PAGE 3 Bob Woodward, Bill O’Reilly books Battling Mike Bloomberg don’t deliver triumph in 2001 over Democrat Mark isn’t a fluke,even in a city where NEW YORK, NEW YORK, P. 6 Two decades in the cold? Green was chalked up to the terrorist at- Democrats comprise two- tack of Sept. 11. Their smashing re-elec- thirds of registered voters High Line and other Democrats face crucial test; tion victories were attributed to the pow- and dominate elected of- new parks buoy a plan for Thompson, Weiner er of incumbency. fices at every other level. surrounding areas But Mr. Bloomberg’s de- Two prominent De- INSIDE cision last week to seek a ocrats, City Comptroller BY ERIK ENGQUIST third term could make William Thompson Jr. and REAL ESTATE REPORT, P. 21 EDITORIAL It’s a long way it 20 consecutive Rep. Anthony Weiner, aim to to 2009 vote next year’s mayoral race will be a gut years without a return City Hall to Democrat- P. 12 check for the Democratic Party. Democrat ic hands even if Mr. 2009 INSIDER When Republican Rudy Giuliani up- running Bloomberg makes the bal- Scramble down set Mayor David Dinkins in 1993, it was the city. lot. Each has raised sev- the ballot P. 14 seen as a singular event caused by height- Two eral million dollars and For ty ened racial tension. Michael Bloomberg’s decades See BATTLING on P. 10 under newscom THE CRISIS CONTINUES 4O NEW AUTHORITY CRAIN’S ANNUAL SEARCH FOR NEW YORK’S Rating agencies RISING STARS STARTS TODAY calling the shots TO NOMINATE 2009 CANDIDATES, GO TO of subprime mortgages. crainsnewyork.com/nominate SLICE ’N’ DICE: After subprime Since diners didn’t “We’ve never been more rele- want to spend, Jim fiasco, credit cops vant,” says Sean Egan, co-founder Botsacos had to of Egan-Jones Ratings Co., a 13- AT DEADLINE rethink the concept bounce back; life- year-old firm that has distin- of Abboccato. guished itself in the past 12 THE PORT AUTHORITY OF NEW and-death power buck ennis months by predicting the difficul- YORK AND NEW JERSEY SAYS ties of bond insurers and other fi- it is working with its RESTAURANT REVAMPS BY AARON ELSTEIN nancial players. congressional delegations to Last week, Egan-Jones’ clout extend the deadline for issuing with the financial system was demonstrated when shares in the Liberty Bonds for the Owners sweeten prostrate and the titans of Wall SLM Corp. plummeted by a World Trade Center site. By Street in full retreat,power is being third—their worst one-day de- law, the bonds must be used by seized by a group of number cline ever.The plunge came on the the end of 2009. But last week, crunchers paid a fraction of the heels of an Egan-Jones report the agency issued new menus with deals banking world’s Armani-clad al- warning that the cost of insuring construction target dates that pha males. the student lender’s debt may suggest the bonds won’t be The new masters of the against default had tripled needed by then.The bonds servers’ black vests and—most im- universe are the thousands $5B and that its continued ac- were supposed to be used to Pare back prices, portant—slashed his menu prices of credit analysts working DECLINE in cess to capital was a “major by 40%. market value of build the Freedom Tower and start happy hours; away in the warrens of such the Hartford after concern.” developer Larry Silverstein’s “People didn’t want to spend firms as Fitch Ratings, threatened loss Similarly, an analyst at three office towers. Some Americans scarce money, so we had to rethink the Moody’s Corp. and Stan- of A+ rating Fitch Ratings sent shock experts hope Mr. Silverstein’s whole concept of the restaurant,” dard & Poor’s. These pen- waves through The Hart- buildings will be delayed. says Mr. Botsacos, who is the chef cil pushers are shaking markets ford Financial Services Group Inc. BY LISA FICKENSCHER and also a partner in the four-year- daily, and determining the fate of last Monday by announcing that FACING A SUDDEN HOLE IN old Italian eatery. banks and insurers as terrified in- he was worried about the insurer’s THE CURRENT STATE BUDGET, in may, Jim Botsacos closed his Long before the financial crisis vestors turn to them for guidance exposure to subprime mortgages Gov. David Paterson midtown restaurant, Abboccato, hit full throttle last month, restau- on which institutions are safe.It’s a and cutting its credit outlook. summoned the Legislature for three days. He changed the rateurs were feeling the chill of a dramatic reawakening for a group Two days later, The Hartford See AT DEADLINE on Page 42 lighting and upholstery, scratched cooling economy. In response, that a few months ago was reviled insisted that it was “confident” the white tablecloths and the See EATERIES on Page 9 for its “all is well”call on mountains See RATING on Page 8

40 MORE OFFICE SPACE CREDIT GREG

5 ON THE Commercial CRUNCH DAVID IMPACT market goes into Small firms find On the ELECTRONIC EDITION OF THE hibernation as RETAIL SPACE that they just front lines FINANCIAL chill intensifies Asking rents can’t borrow of a panic CRISIS P. 2 bound to fall P. 2 P. 8 P. 13 NEWSPAPER 71486 01068 0 CNYB 10-06-08 A 2 10/3/2008 7:59 PM Page 1

THE CRISIS CONTINUES THE IMPACT OF THE CHAOS Branch closings FIGHTING FOR WACHOVIA WELLS FARGO & CO. trumped Citigroup Inc.’s fire-sale bid for Wachovia Corp.’s banking operations alter retail landscape by offering a deal of $7 a share and no government backing. But Citi ON THE STREET argued it had a definitive deal, the Federal Deposit Insurance Corp. supported Citi, and the two firms laid Vacancies will ground for battle. force down rents; THAIN’S NEW ROLE some areas are still BANK OF AMERICA announced that seeing increases John Thain, chief executive of Merrill Lynch & Co., will serve as BofA’s president of global banking, BY ADRIANNE PASQUARELLI securities and wealth management after the merger. as the financial storm rips

through New York, claiming large buck ennis AIG SELLS OFF commercial banks and small busi- GOING AND GONE: The storefront at 367 Third Ave. has been empty for more than a year. WaMu branches are expected to close soon. INSURANCE GIANT American ness owners as victims, real estate International Group Inc. agreed to experts are waiting for the other sell its life insurance and retirement shoe—namely, retail rents—to example, some brokers expect that trepreneurs in her neighborhood. conditions raised neighborhood operations in the United States, drop. In some cases, brokers are J.P.Morgan Chase will close more Ms. Johnson, who had her shop on rents to more than $130 a square Europe, Latin America and Japan to predicting decreases of 20% from than 10% of WaMu’s 144 city Orchard Street for seven years,says foot, tenants such as Video Stop, at help pay off its $85 billion current asking prices. branches. Experts think that the she will concentrate on her e-com- 367 Third Ave., were pushed out. government loan. “Rents will have to come excess inventory will make a rent merce business for the near term. After more than a year, its 2,500- down,” says Neal Ohm, a director correction inevitable and that Trendy districts all over the city square-foot space is unfilled. A PIECE OF LEHMAN at CitySites Commercial Group. prices will revert back to pre-ex- have taken a hit.Vacancies are even “There’s no other way.” pansion levels, if not lower. popping up on Bleecker Street be- Forty-year fixture PRIVATE EQUITY FIRMS Bain Capital It has not been smooth sailing “[Landlords] will not be able to tween Hudson Street and Seventh similarly,department store Mor- Partners and Hellman & Friedman for property owners.The failure of achieve the rents in this Avenue,a high-end strip ris Brothers,a 40-year fixture on the are buying Lehman Brothers Washington Mutual,which will be current economic cli- with such tony tenants Upper West Side, was forced to va- Holdings Inc.’s money management absorbed by J.P.Morgan Chase & mate that they might as Marc Jacobs. Asking cate 18 months ago after its rent firm, Neuberger Berman, as part of a Co., most likely means that a sig- have gotten six months 20% rents in the area have went up. The landlord, Eagle $2.2 billion deal. nificant number of its New York to a year ago,” says THE EXPECTED jumped in recent years to Court, is still searching for a tenant PACE’S FROZEN FUNDS City branches will be on the list for Robin Abrams, a bro- DROP in retail nearly $400 a square for the 5,600-square-foot space, shuttering. That follows moves by ker with Lansco Corp. rents in certain foot, according to the whose rent is $325 a square foot. PACE UNIVERSITY was one of 1,000 such established retailers as Star- neighborhoods, most recent retail report Landlords are looking to inter- colleges with money in an investment bucks to close stores because of Still soaring according to from the Real Estate national retailers with deep pockets, fund frozen by Wachovia Bank. About lower sales and business uncertain- as landlords in some brokers Board of New York. like Sweden’s H&M, that can af- $48 million, or 64% of Pace’s ty. Additionally, the credit crunch areas struggle to find Nearly a dozen store- ford to convert a bank branch into a working capital, was invested in the is squeezing out small businesses tenants,rents continue to rise in se- fronts on the street sit empty, some retail space, brokers say. They add Commonfund Short Term Fund. unable to cope with current rents. lect neighborhoods. Johnson, a delis with drink-filled refrigerators that service providers, such as In the past few years, retail real boutique on the Lower East Side still inside. AT&T phone stores, and kidswear estate boomed as banks snapped up featuring owner Kim Johnson’s de- “Some of the flavor-of-the retailers like American Girl are also prime branch locations,like corner signs, closed last week. month neighborhoods might feel sought-after tenants. spots, and larger properties. Bank Ms. Johnson says a recent dou- it,” says Jeffrey Roseman, execu- “Companies that have been sit- THIS WEEK IN CRAIN’S bidding wars often inflated typical bling of her rent for the 350- tive vice president of Newmark ting on the sidelines, waiting for retail asking prices by 20% to 50% square-foot store, to $154 a square Knight Frank Retail. the bank bubble to burst”will final- NEW YORK, NEW YORK------6 in entire neighborhoods, which foot, and disappointing sales in Murray Hill has welcomed ten- ly get their day, Mr. Roseman says. displaced small business tenants. September forced her out. ants like Pinkberry and Ricky’s in GREG DAVID ------13 That bank space is likely to “One by one, we’re dropping the past few years but is now seeing COMMENTS? THE INSIDER------14 start flooding the market soon.For like flies,” she says, referring to en- its share of vacancies. As market [email protected] WEEK IN REVIEW ------16 SMALL BUSINESS ------18 REPORT: REAL ESTATE ------21 DEALS------31 Office tenants catching breaks NEIGHBORHOOD JOURNAL------33 WINNERS roughly a quarter of Manhattan’s ing decisions as they wait for the leased space, are beginning to re- smoke of the financial crisis to THE WEEKS AHEAD ------34 MARKET STATS Owners renegotiate, trench as they merge, downsize clear—and for rents to fall. CLASSIFIEDS ------36 AVERAGE MANHATTAN RENT and disappear. For tenants, an era “There aren’t many things that offer incentives as of better deals is dawning. have paralyzed leasing. Sept. 11 BUSINESS LIVES------39 $63.56 $70.20 market worsens 3Q 2007 3Q 2008 was one. This crisis is another,” CORPORATE LADDER------41 Waiting for deals says David Hoffman, executive LEASING VOLUME EXECUTIVE MOVES------42 “things are changing out there,” managing director at Colliers BY THERESA AGOVINO (millions of square feet) says Mr.Dusek,a senior managing ABR.“Very little is happening be- BOB LAPE ------43 6.5 5.1 director at Studley Inc., a broker- cause the uncertainty is so deep vol. xxiv, no. 40, october 6, 2008—Crain’s after years of landlords dictat- 3Q 2007 3Q 2008 age that represents only tenants. and the fear is so strong.” New York Business (issn 8756-789x) is pub- ing lease terms—ratcheting up “Why should my client pay big What little is being done con- lished weekly by Crain Communications Inc., AVAILABILITY RATE 711 Third Ave., New York, NY 10017. Periodi- rents at regular intervals—the tide rents when I know there is going to sists largely of renegotiating deals cals postage paid at New York, N.Y. and addi- is turning in tenants’ favor, and be more competition?” that had been tentatively agreed tional mailing offices. Postmaster: Send address 7. 0 % 8.9% changes to: Crain’s New York Business, Circula- David Dusek knows it. 3Q 2007 3Q 2008 Across the city, deals are being to, or simply renewing leases. Re- tion Department, 1155 Gratiot Avenue, Detroit, Two weeks ago, the embold- Source: Studley Inc. renegotiated or are falling apart as cently, Avenue Capital, for exam- MI 48207-2912. for subscriber service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a copy, ened broker asked a landlord to the financial industry’s woes start ple, decided against moving into $59.79 one year, $109.79 two years. (GST No. shave $5 off the agreed-upon rent to have an impact on the real estate 90,000 square feet of space at 1221 13676-0444-RT) ©Entire contents copyright of $58 a square foot for a 10,000- landlord has yet to respond, but sector. Mostly, though, the sector Sixth Ave.when its landlord at 535 2008 by Crain Communications Inc. All rights reserved. square-foot deal—a request Mr. Dusek insists he isn’t worried. has entered a state of suspended Madison Ave. sweetened its orig- unimaginable until recently. The Financial firms, which occupy animation. Tenants are postpon- See OFFICE on Page 8

2 | Crain’s New York Business | October 6, 2008 CNYB 10-06-08 A 3 10/3/2008 8:01 PM Page 1

AIDS BY THE An AIDS star NUMBERS 1.2 million U.S. residents are living with HIV passes baton 40,000 U.S. residents are newly the world’s best hope to find an lab through infected each year Dr. David Ho’s work AIDS vaccine. medical and on a vaccine is being “David had the Midas touch,” graduate school. 100,000 Dr.Martin Hirsch of Massachusetts Caring for AIDS pa- New Yorkers are living overshadowed by General Hospital told the magazine tients in the Bronx with HIV a former employee for its cover story. during a residency at Jacobi Medical Cen- Still searching 4,380 ter convinced her to New Yorkers BY GALE SCOTT get an AIDS but 12 years later,Dr.Ho,who focus on HIV re- diagnosis each year teaches at Rockefeller University, is search,and she went when virus expert Dr. David Ho still searching for a vaccine to cure on to head a re- came to New York City almost 20 AIDS. But in an unusual plot twist , search lab in Wash- 1,460 New Yorkers die from AIDS years ago to head Manhattan’s fledg- the researcher’s work is being ington, D.C. each year ennis buck ling Aaron Diamond AIDS Re- eclipsed by one of his former em- Then,in 2002,Dr. search Center, hospitals were over- ployees at the university, Dr. Sarah Steinman and Dr. david neff Sources: U.S. CDC and NYC Department of Health and Mental Hygiene, 2006 flowing with patients dying of AIDS. Schlesinger. Ho recruited her He recruited a team, went to Dr. Schlesinger has walked the to run an AIDS vaccine work in the lab and soon came up marble halls of Rockefeller Univer- trial. with the “AIDS cocktail” of drugs sity since she was a Scarsdale High The vaccine did not “Finding a vaccine is that is now standard treatment for School junior. Captivated by a lec- prove successful, one of still the holy grail of HIV infection. ture at Rockefeller on science ca- many that have failed. AIDS research,” says Dr. That stunning achievement reers,she phoned the researcher who Nowadays,Dr.Ho is Ho. But that has proven lengthened the lives of millions of would become her mentor, Dr. working on several much more difficult than people with HIV. In recognition of Ralph Steinman, and begged to vaccine candidates See PASSING on Page 11 that, Dr. Ho was named Time mag- work there. and is also searching azine’s Man of the Year in 1996. Bending policy, he agreed to an for a product that would kill the DR. SARAH SCHLESINGER, who once worked People started looking to Dr. Ho as internship.She went on to work in his virus on contact. for Dr. David Ho, is now working on her own vaccine. NEW INFLUENTIALS

RESULTS Who do you think is the most Dimon, Fey a duo for odd time influential? JAMIE brightly. And because J.P. Morgan DIMON Banker and comic Chase’s solid retail deposits back his 180 votes 28% top readers picks global ambitions, the executive is THE WRITE-IN well-positioned to become an even TINA of most influential stronger force in the industry. VOTES FEY 116 votes Palin parodies DISSATISFIED with Crain’s New 18% Influentials selections, readers BY JOYCE HANSON in september, Ms. Fey appeared OTHERS* thrust a handful of other twice on NBC’s Saturday Night Live emerging leaders into the (see write-ins) yes, the government is assuming to deliver a dead-on impersonation 39 votes spotlight, naming people in such 6% new powers, and yes, Wall Street of Sarah Palin that at times involved seems to have become a shadow of a word-for-word repetition of the fields as real estate, social LLOYD services and public relations. BLANKFEIN its former self—but a political paro- candidate’s own vague statements. For example, one reader 34 votes dist and the head of one of the The segments have gone viral,mak- 5% world’s largest banks sharing the top ing Ms. Fey a household word na- picked Gordon Campbell, TIMOTHY of a list of influential people? tionwide—and reminding the me- named last year as chief GEITHNER At least that’s what Crain’s read- Jamie Dimon, J.P. Morgan Chase dia and political worlds of the power executive of the United Way of 28 votes 4% ers said in an online poll. of parody. New York City. Mr. Campbell, who Choosing from Crain’s list of 25 ‘We’ve got the “Almost everybody who sees served Mayor Michael JOANNE New Influentials in New York,read- Sarah Palin sees her through the Bloomberg’s three predecessors MINIERI in positions dealing with AIDS 27 votes ers’ top pick was Jamie Dimon, the guy who’s been lens of the Tina Fey parody,” says 4% chief executive of J.P. Morgan Robert Thompson, director of the and homelessness, was also CEO THE REV. A.R. Chase & Co. Tina Fey received the the smartest Center for the Study of Popular of Safe Horizon, which worked BERNARD second-largest number of votes. Television at Syracuse University. with the September 11th Fund to 25 votes 4% Each of their totals far exceed the banker’ “Tina Fey managed to be a delivery disburse $250 million to 20,000 count for Goldman Sachs CEO system of Katie Couric’s interview, victims and family members. HANK Lloyd Blankfein, the Influential thanks to her burlesque of it.” Another reader tapped Kevin AND HAL who came in third. Mr. Thompson says the top vote Hackett, who was named head STEINBRENNER counts for Mr. Dimon and Ms. Fey of Rockefeller Group 19 votes 3% True picture Following up on his triumphant have as much to do with their fame Development Corp. last year. He “i think it’s a real reflection of the acquisition of Bear Stearns Cos. in as with their actual clout. For exam- oversees 7.7 million square feet ELI times we live in,” says Mitchell L. March, Mr. Dimon took over ple, Timothy Geithner and Jeffrey of prime office and retail space in PARISER Moss, a professor at New York Uni- Washington Mutual on Sept. 25, Bewkes have lower public profiles, Rockefeller Center. 18 votes 3% versity’s Robert F. Wagner Gradu- when the Seattle thrift collapsed in but their influence is arguably ate School of Public Service.“We’ve the nation’s biggest bank failure stronger than that of the top picks. SIR PAUL got the guy who’s been the smartest ever. Mr. Geithner, president of the NURSE banker in the country and the Rising to the challenge again as Federal Reserve Bank of New York, controls one of the world’s largest 17 votes 3% woman who’s captured the Repub- his peers stumbled during this latest has overseen bailout proposals dur- media companies. *Pictured: Gordon Campbell lican vice presidential candidate turmoil, Mr. Dimon’s reputation as ing the financial meltdown. And as better than Sarah Palin has herself.” a banking savior shines even more CEO of Time Warner, Mr. Bewkes COMMENTS? [email protected]

October 6, 2008 | Crain’s New York Business | 3 CNYB 10-06-08 A 4 10/3/2008 7:40 PM Page 1

AT DEADLINE

Continued from Page 1 remaining bidders are a coalition back for another special budget made up of The Cogsville session on Nov. 18 and has asked Group, the Christian Cultural Assembly and Senate leaders to Center, the Housing Partnership submit $2 billion worth of Development Corp. and The proposed cuts. Forecasts from the Clarett Group, and another state budget consisting of Citigroup Inc., office put Westbrook Partners, the Central the shortfall Labor Council and the for the Metropolitan Council on Jewish current year Poverty. at $1.2 billion, but THE BAILOUT PACKAGE PASSED BY WWW.11WEST19STREET.COM Mr. Paterson CONGRESS LAST WEEK INCLUDED CHELSEA • FLATIRON • UNION SQUARE (left) says he New York-initiated provisions to expects the protect tenants in apartment

buck ennis gap to grow buildings where the federal • 26,000 sf FOR LEASING INFORMATION to $2 billion before the end of the government takes over PLEASE CONTACT: fiscal year on March 31, 2009. mortgages. At the request of the The latest round of cuts follows a Partnership to Preserve • Full floor identity special session in August, when Affordable Housing, Rep. Nydia Michael Kaufman Albany attempted to cut Velázquez and Sen. Charles • Newly renovated lobby 212-471-4320 spending to deal with the budget Schumer, both Democrats, made [email protected] in the next fiscal year. sure that rental subsidies will be protected and that any loan • NBI for qualified Tenants CLEAR CHANNEL RADIO’S TOP modifications take into account Grant Greenspan NEW YORK EXECUTIVE STEPPED the need to maintain decent and • Close Proximity to 212-471-4340 down on Friday. Rob Williams safe conditions. Transportation [email protected] gave up his post as market manager for Clear Channel New IN A SIGN OF HOW BROADWAY IS York, becoming the latest in a BATTENING DOWN THE HATCHES string of departures from the for the recession, the producers THE KAUFMAN ORGANIZATION nation’s largest radio operator. of the long-running hit musical WWW.KAUFMANORGANIZATION.COM Mr. Williams’ responsibilities Hairspray announced on Friday overseeing Clear Channel New that the show will close on Jan. York’s five stations, including 18.The production, which ran WLTW-FM and WHTZ-FM, for more than six years and won will be taken over by Tom eight Tony Awards, including Did You Catch Today’s Breaking News Stories? Schurr, the recently appointed one for best musical, recouped executive vice president of its investment about one year Go to crainsnewyork.com for the latest. operations for the Eastern after it opened. Recently, region. Mr. Williams insists that though, it has played to only his decision to leave was purely 60% capacity, with an average CRAINS_06-16-08_ unidata_Enterprise SLAs.ai 6/5/2008 3:49:29 PM personal and that he plans to play golf in Scotland before deciding on his next step.

AOL SIGNED A 15-YEAR LEASE FOR AN ADDITIONAL 76,000 SQUARE Enterprise SLAs feet at its headquarters at 770 Broadway in a deal that’s a bright spot in an increasingly darkening for middle market real estate market.The Internet getty images company transferred its HAIRSPRAY will close on Jan. 18. companies headquarters to New York from Virginia last April when it moved into the building, taking a paid ticket price of $57.20. Last Middle market companies are in a tough position. total of 152,000 square feet on week, Legally Blonde announced the entire fourth and fifth floors. it would shut down on Oct. 19 The banks call you middle market—offering middle Real estate sources say its lease because of the economy. market credit lines at middle market rates. But in the on the existing floors started at Xanadu’s last performance was information technology (IT) world, customers, $69 a square foot and will jump on Sept. 28 and [title of show] is trading partners, and regulators expect you to operate to $79 a square foot over time. set to close on Oct. 12. AOL was represented by Jones like an enterprise—with all the costly network access, Lang LaSalle.The building’s ATTORNEY GENERAL ANDREW availability, backup, security, and application owner, Vornado Realty Trust, CUOMO HAS DECIDED TO SUE support that entails. negotiated on its own behalf. Arbitron over its Portable People Meter system, according to We’d like to help you outmaneuver this situation. THE OWNER OF STARRETT CITY industry sources. Arbitron is set HAS JOINED THE FEDERAL to begin commercial Department of Housing and implementation in New York CallCall uuss ttodayodayy—we’llwe’ll givegive you a Urban Development in rejecting and other markets on Oct. 8. Mr. complimentary network assessment, designed to bids from two suitors. Starrett Cuomo has written to Arbitron City Associates wouldn’t say why Chief Executive Steve Morris to outline your company’s best bets it took the action.The two say that the planned suit will for service improvement and cost savings “enjoin unlawful and deceptive practices in which Arbitron plans to engage, has engaged We’re the brains behind New York’s best networks and/or continues to engage.” The AG’s office opened an inquiry into the PPMs last month in the midst of protests from minority broadcasters that the electronic audience

A Unity International Group Company ap images measurement system didn’t www.UniDataIT.com [email protected] (718) 445-5600 (opt.2) STARRETT CITY hasn’t found a buyer. accurately count their listeners.

4 | Crain’s New York Business | October 6, 2008 Project3 9/22/08 10:06 AM Page 1

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“Largest” claim based on geographic coverage (in sq. miles). May require up to a $36 activation fee/line, credit approval, deposit and $200 early termination fee/line. Phone Offer: Offer ends 11/01/08 or while supplies last. Not available at all locations. $199.99 (2-year price) - $100 mail-in rebate = $99.99 (final price). Taxes excluded. No cash back. Requires activation at the time of purchase on the same account during one sales transaction. Mail-in Rebate: Requires purchase by 11/01/08 and activation by 11/15/08. Line must be active 30 consecutive days. Allow 10 to 14 weeks for rebate. Upgrade: Existing customers in good standing with service on the same device for more than 22 consecutive months currently activated on a service plan of $34.99 or higher may be eligible. See in-store rebate form or sprint.com/upgrade for details. Pricing, offer terms, fees and features may vary for existing customers not eligible for upgrade. Other Terms: Offer and service plan features not available in all markets/retail locations or for all phones/networks. The Nationwide Sprint Network reaches over 262 million people. The Sprint Mobile Broadband Network reaches over 248 million people (including data roaming). Coverage not available everywhere. Not combinable with other discounts. Other restrictions apply. See store or sprint.com for details. ©2008 Sprint. Research In Motion, the RIM logo, BlackBerry, the BlackBerry logo and SureType are registered with the U.S. Patent and Trademark Office and may be pending or registered in other countries—these and other marks of Research In Motion Limited are used under license. CNYB 10-06-08 A 6 10/3/2008 6:35 PM Page 1

MONDAY PROPERTIES announces the following lease transaction at NEW YORK,NEW YORK 230 PARK AVENUE edited by Valerie Block

INSCAP MANAGEMENT has renewed the entire 21st ﬂ oor for a total of 22,000 square feet Bears threaten best-sellers he wall street crisis has taken InsCap Management Represented By: Silvio Petriello | Brad Needleman a toll even on the mighty Bob CB Richard Ellis TWoodward (left), whose latest account of the Bush administration, The War Within, failed to hit the For Leasing Information Please Contact: Monday Properties | Craig Panzirer | 212.490.7100 No. 1 spot on The New York Times’ best-seller list—a rare miss for the Washington Post’s legendary reporter. Even worse, the new title is vastly underselling its Bush-cycle predecessor, State of Denial. The War Within sold 99,000 copies getty images its first two weeks out, according to Nielsen BookScan, which tracks about 70% of the market. State of Denial sold 309,000 copies in its first two weeks.The new book debuted at No. 2 on the Times’ list on Sept. 27 and will drop to No. 4 on Oct. 12. Mr. Woodward is not alone in failing to hit his old numbers. A Bold Fresh Piece of Humanity, the new book by Bill O’Reilly (right), sold 25,526 copies its first week—about half what his Culture Warrior did two years ago. “It’s the economy, it’s the news cycle, it’s all those things,” says David Rosenthal, publisher of Simon & Schuster, which brought out The War Within. “Comparing right now to two 230 PARK AVENUE, SUITE 500, NEW YORK, NY 10169 212.490.7100 1000 WILSON BOULEVARD, SUITE 700, ARLINGTON, VA 22209 703.284.0200 years ago is going to turn up gaps for anybody.” www.MONDAYRE.com Bars tap or Yankees, we might have had a into politics fight,” Mr. Feldstein says. MPC-1011 Crain 4 x 7 bw.indd 1 9/25/08 3:23:29 PM forget baseball.Brooklyn A cascade bars are cashing in on election of new business mania. Pacific Standard in Park Slope was so packed during the new york city Waterfalls convention coverage and recent (right), Danish artist Olafur bloomberg news debates that it has decided to sell Eliasson’s art installation in New $10 tickets for election night on York Harbor, ends next week, and in visitors to Governors Island Nov. 4. local businesses are calling it a partly to the installation. On its blog, the pub promises success. “to limit the total number of NY Water Taxi says it carried tickets sold ... so we won’t be 120,000 passengers on its Financial workers overwhelmed by the masses.” Waterfalls tours through August weigh options To ease patrons’ sticker shock, and credits the exhibit with the ticket includes a beer. increasing commuter ridership talk about gloomy outlooks. A Pacific Standard isn’t the only between Queens, Brooklyn and new survey from Doostang.com, a beneficiary of the new interest in Manhattan. Meanwhile, Circle popular online career network, politics.The 4th Line Downtown, finds that 85% of financial services Avenue Pub, the exhibit’s employees believe the economic Cherry Tree Bar official tour turmoil roiling the country will and Patio Lounge operator, says it continue well past the first quarter are also enjoying ferried 82,000 of 2009. A full 50% of the 338 Weiser LLP overflow crowds. passengers on its surveyed are planning to look for a “We were $10 tours. new job in the next three months, packed for In June, the and 27% of respondents expect to Obama’s speech, city estimated leave Wall Street altogether. not that packed for that the four- “A lot of finance people are Weiser LLP McCain’s,” says month project looking for new careers in busi- Cherry Tree would attract ness development and manage- Aaron Mareza Tax planning and compliance bartender some 340,000 ment consulting,” says Feldstein. viewers, including Larizadeh, who founded the Palo Accounting and auditing But the debate 86,000 out-of- Alto, Calif.-based employment Property and portfolio valuations between Gov. towners, and site three years ago. “This has been Due diligence and litigation support Sarah Palin and A NEW EXHIBIT, Not a Cough generate $55 good for us.” Doostang has seen a Financial, economic, and market risk analysis Joe Biden Sen. was in a Carload: Images Used million for New 40% increase in job applications in Acquisition and disposition counseling a hit. And the York businesses. the past few weeks alone. by Tobacco Companies to debate got screen This month, the The 500,000-member site Hide the Hazards of time, even though mayor’s office will boasts 23 company networks, a playoff game Smoking, opens on Oct. 7 at issue a report on including ones for fallen firms Weiser LLP between the Cubs The New York Public these numbers. Lehman Brothers and AIG. and the Dodgers Library’s Healy Hall at 188 Anecdotally, | | | | Madison Ave. LLP was on that night. the city attributes Contributors: Lisa Fickenscher, “If it was Mets the huge increase Matthew Flamm

6 | Crain’s New York Business | October 6, 2008 CN012305 8/15/08 4:10 PM Page 1

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THE CRISIS CONTINUES Tightening credit markets stymie small businesses

LACK OF LENDING or nervous that a continued down- at the larger banks has opened doors turn could harm business. for smaller ones, the Sterlings of the Problems had been brewing even world can’t come close to filling all Expansion plans put before the world of banking was the gaping holes. Some companies on back burner as turned upside down in recent weeks, have turned to asset-based lenders, according to Michael Pappas, New which typically charge at least 3 per- loans become scarce York regional administrator for the centage points more than banks,but U.S.Small Business Administration. have looser standards. THROUGH THE MEAT BY DANIEL MASSEY GRINDER: “We’re just “It’s not just the last three weeks,” Other businesses are getting cre- going to push our trucks he says. “We’ve seen a downward ative, including several members of more,” says Edgar Soto, cibao meat products’ three beat- trend in lending activity for many the Caribbean American Chamber who didn’t even try to get up delivery trucks spend more time months.” of Commerce, which are partnering a loan for Cibao.

in the garage getting repaired than with companies in places like neff david on the road carting salamis. Vice SBA loans are down Guyana and Grenada to take advan- President Edgar Soto would like to sba-backed loans in the city de- tage of more lenient lending stan- lenders, which can charge interest owner of a Bronx electroplating replace them with two new 26-foot clined 60% in the first 11 months of dards abroad. rates of 15% to 20%, are the only company, recently got a letter from refrigerated vehicles, but he knows fiscal 2008 versus the year-earlier But many, including Manhattan ones willing to finance projects. his bank notifying him that his line that now is not the time to look for period, falling to 2,343. There were film and audio production company Rachel Thebault is also biding of credit was being cut by 60%. the $100,000 in financing that his steep drops in all five boroughs New Artist NY Inc., are left hanging her time. The former investment Existing companies aren’t the Bronx company would need to buy through Aug. 31, driven by pull- out to dry. Owner William Enrico banker had hoped to expand spe- only ones hurting, according to them. backs by larger lenders. just shelved plans to open a studio in cialty bakery Tribeca Treats to Steven Gardner, managing director “With the tight credit situation, Not all banks have curtailed their Los Angeles after a bank turned Chicago, Los Angeles and San of Franchise Partners International. we decided not to even attempt to lending. Smaller banks which don’t down a request for a $1.5 million loan. Francisco,but she didn’t like the idea Startups are facing hard times get a loan,” he says. “We’re just go- have the toxic assets on their books “We had contracts showing what of paying higher-than-usual inter- because banks want more cash down ing to have to push those trucks that gave birth to the financial crisis we’d bring in,” Mr. Enrico says. “But est rates to back her plan. and higher credit scores to make more.” continue to extend credit. Manhat- we had to let that go.It’s a missed op- loans. Mr. Gardner, who advises As the credit crisis mounts,oper- tan-based Sterling National Bank portunity, a jagged pill to swallow.” Getting conservative franchisees,says that three or four of ators of small businesses across the last week took out an advertisement Other small businesses in the “between not being sure how to his clients’ deals have fallen apart city are making similar decisions. in The Wall Street Journal that asked, area also have postponed plans to finance it and the fact that people are each month over the past year. Some say they have been turned “What Credit Crunch?” grow. less willing to spend money in a down “The requirements are more down for loans as banks tighten “We’re not the cheapest bank in Matthew Goldfine,whose Excel economy, I’m thinking more conser- stringent, and clients are just not lending standards, while others re- the marketplace,” says Sterling Builders & Renovators just finished vatively about expansion,” she says. qualifying for financing,”Mr.Gard- port that their credit lines have been President John Millman. “But a five-unit boutique condominium Businesses with credit lines are ner says.“The end result is that deals sliced in half.Even those who might there’s now a lot more market op- in Carroll Gardens, Brooklyn, says facing the prospect that these don’t happen.” qualify for loans are hanging back, portunity for us.” he’s temporarily out of the develop- sources of funds may no longer be anxious to avoid high interest rates While consolidation and turmoil ment business. High-collateral reliable lifelines. Gerry Berkman, COMMENTS? [email protected]

dle of the night to begin sorting out val CreditSights reports 900 clients its myriad ramifications. All too of- for its research and says it is on pace Rating agencies calling shots ten, it’s anybody’s guess. for a 30% jump this year. “After a situation like the sale of The past few weeks have also Continued from Page 1 fault-prediction models. By the who provide them with detailed fi- Wachovia or the failure of Washing- been kind to Moody’s and Standard about its financial strength. In- Street’s most important measure— nancial information that they don’t ton Mutual,we get calls from clients & Poor’s, the giants that in the past vestors didn’t buy it. By the end of pay—analysts indeed rank poorly. disclose to the public. The privi- asking what happens to their trust- year have been roasted in Congress, the week, the firm’s share price had Compensation tops out at $700,000 leged position gives analysts a com- preferred securities or their subordi- the press and living rooms nation- shriveled by 40%, wiping out $6 bil- for managing directors, re- prehensive view but means nated debt,” Mr. Reid says.“We call wide for their failure to strip sub- lion in market value. cruiters say—a pittance that they face extraordinary our contacts within the banks and prime mortgage-related securities Meanwhile, Moody’s and S&P compared with what 30% pressure to stay on top of frequently they don’t know, either.” of their coveted AAA ratings until analysts helped drive Wachovia bankers or traders of similar JUMP in client things. long after the bonds had clearly pu- numbers Silver lining Corp. into the arms of Citigroup rank collect. The average recorded by Gone,at least for now,are trefied.The New York attorney gen- Inc. by threatening to downgrade Moody’s employee made CreditSights the tranquil days when they despite the chaos and exhausting eral’s office is investigating the the North Carolina-based bank be- $200,000 last year, accord- this year could put their phones down hours, Mr. Reid concedes that after firms’ practices. cause of its deteriorating $300 bil- ing to the firm’s annual re- at seven in the evening, says 22 years in the business, he finds it “The rating agencies are clearly lion mortgage portfolio. Wells Far- port. That’s less than a third of the Alan Reid,managing director in the invigorating to at last be at the cen- reacting to the punishment they’ve go also made a bid Friday, but the average take-home pay at Goldman financial institutions group at rat- ter of attention. “You know, this is taken,” says Lawrence White, an one definite thing is that Wachovia’s Sachs. ings agency DBRS. fun,” he says. economics professor at New York days of independence are over. Mr. Reid and his crew of 14 ana- Mr. Egan notes that interest in University’s Stern School of Busi- Such is heady stuff for credit an- Privileged perches lysts now regularly work well past his firm’s analysis has soared. Five ness.“Arguably,they are doing a bet- alysts, whom Wall Street’s swagger- the one advantage that humble midnight and on weekends. When hundred institutional investors now ter job than in the past.” ing bankers have long dismissed as credit analystshave always had is ex- Lehman Brothers collapsed, several subscribe to its research,and he’s ex- meek and hopelessly lost in their de- ceptional access to bank executives, staffers were summoned in the mid- panding his staff of 30. Similarly,ri- COMMENTS? [email protected]

accommodating, offering more free commissions are paid over months. rent and more generous allowances About a month ago, the owners Office tenants catching breaks to help tenants build out their of 655 Madison Ave. dropped the spaces. rent to $99 a square foot from about Continued from Page 2 port by Cushman & Wakefield Inc. since the third quarter of 2005. But brokers say landlords will have $125 a square foot. inal offer.Toyota, meanwhile, is try- Leasing activity in the third Studley estimates it could reach to do more to persuade tenants to pull “All my competition is in the triple ing to improve the terms of the quarter totaled 5.1 million square 13% by early 2010. the trigger and move. Many are ex- digits,” says Andrew Roos, a vice agreement it reached to lease rough- feet, 31.6% below the market’s his- pecting landlords to lower rents, in- chairman at GVA Williams, who ly 33,000 square feet at Citigroup torical average of 7.4 million square Road dips ahead crease broker perks and launch lavish owns the building along with some Center. feet and 22.3% below leasing in the the sluggish deal pace has start- marketing campaigns. Such signs are colleagues. “We want to be the low- Even before the financial crisis in- second quarter, according to a pre- ed to affect rents. Studley found just beginning to emerge. cost provider in the Plaza district.” tensified in recent weeks, the real es- liminary report by Studley. The rents were essentially flat in the third Two weeks ago, the landlord at For now, however, most land- tate industry was slowing. Financial availability rate—the amount of quarter at $70.20. Brokers expect 95 Madison Ave. began offering lords aren’t ready to follow suit and firms now occupy only 25% of the space that will be available in a declines of 10% to 20%. brokers who lead full-floor tenants slash rents. space in Manhattan,down from 30% year— grew almost one percentage In the weakening market, land- to the building their full commis- in the first quarter, according to a re- point to nearly 9%,the biggest jump lords were already becoming more sion at the deal signing. Typically COMMENTS? [email protected]

8 | Crain’s New York Business | October 6, 2008 CNYB 10-06-08 A 9 10/3/2008 3:35 PM Page 1

THE CRISIS CONTINUES Eateries pare back

Continued from Page 1 Ken Gordon,vice president of oper- more and more of them are taking ations for Patina Restaurant Group, action, reinventing their businesses which owns the rink-side eatery. to reflect leaner times and thinner He adds that for the most part, crowds. From the most elegant din- efforts are aimed squarely at his ing establishments to informal American patrons—New Yorkers bistros, New York restaurants are and out-of-towners alike—who be- touting bargain prix-fixe menus, gan putting themselves on financial adding happy hours and scaling diets some months ago, even as for- back lofty wine lists to make room eigners continued to spend. for more bottles below $100. “We have to be realistic about Catering to Americans what people can pay for a meal,”says “americans like to eat out between Tracy Nieporent, a partner in the 5 and 7,”says Mr.Gordon,who notes Myriad Restaurant Group,owner of that business at Patina’s restaurants Tribeca Grill and Nobu, among in the city during those hours has other eateries.Tellingly,new restau- tumbled 20% since this summer. rant Corton, which the company Coaxing New Yorkers to splurge opened just last week, features a on dining out these days is becoming prix-fixe three-course meal at a top priority for restaurateurs. Lo- $76—considered a good value at cals used to account for 80% of the such a high-caliber restaurant. crowd at the two glitzy Megu restau- “People want cost certainty,”Mr. rants in Manhattan; now, no more Nieporent says. than 50% of customers live here.To That logic explains why so many give locals an incentive,the Japanese in the industry seized on this sum- import is introducing a $55 prix- mer’s Restaurant fixe, three-course Week, one phase menu this week. in the semiannual “My tasting promotion spon- menus have never sored by tourism been less than bureau NYC & $100 per person,” Company, under says Hiro Nishida, which top restau- president of Food rants create three- Scope America, course menus at Megu’s parent. “I $24 for lunch and told my kitchen to Did You Catch Today’s Breaking News Stories? $35 for dinner. introduce this to A record num- give New Yorkers Go to crainsnewyork.com for the latest. ber of eateries,238, an opportunity to joined this year’s ef- enjoy Megu on a fort,which ran from budget.” July 21 to Aug. 1. Megu, whose Not everyone When the tourism is happy with the bureau extended tasting menus fire-sale approach. Restaurant Week An elite group of through Labor Day, top $100, is restaurateurs in- more than half of sist that while the eateries went debuting $55 such steps may along for the ride. help in the short At this point, prix-fixe fare term, they may the biggest concern cause irreparable about the winter long-term harm. program coming “Using cheaper up in February is ingredients or cut- whether all the ting prices is det- Market restaurateurs who are clamoring to rimental to a brand,”says Paul Bolles- participate can be accommodated. Beaven, a partner in Danny Meyer’s “We are close to the limit,” says Union Square Hospitality Group. smart. Mr.Nieporent,chairman of NYC & “This is a time to increase good will Company’s restaurant committee. by offering more hospitality.” Nevertheless, USHG, too, is Restaurant year? bowing to market forces. Tabla, in the meantime, some restau- which serves Indian cuisine,extend- rants have extended the summer ed the Restaurant Week menu program indefinitely. At trendy through September; and Eleven Japonais in Gramercy Park, the $35 Madison Park diners will still find a dinner, available from 5 p.m. to 7 $38 prix-fixe lunch that was intro- p.m.,is staying on the menu.And no duced in the spring. wonder: Reservations shot up 20% “Our wine directors are working after the prix-fixe meal was intro- harder than ever to find more wines duced,says General Manager David in the $60-to-$80 range,” adds Mr. Patten.The restaurant also launched Bolles-Beaven. a happy hour, charging $4 for im- Reducing prices carries financial ported beer and specialty cocktails risks as well. Some restaurants are and offering appetizers for $7. hiring consultants to help them fig- Even swanky Sea Grill in Rock- ure out the right price points. “If efeller Center recently joined the your menus aren’t set up right, you’ll drive to scale back prices.It unveiled lose money,” says consultant Erik its first lunch and dinner bar menu, Blauberg, who has been retained by transforming a $38 crab cake entrée B.B.King,the Blue Note and others. into a $28 sandwich, for example. “We want our regulars to be able COMMENTS? to afford a bite at the counter,” says [email protected]

October 6, 2008 | Crain’s New York Business | 9 CNYB 10-06-08 A 10 10/3/2008 3:19 PM Page 1

Battling Bloomberg

Continued from Page 1 port such a campaign can garner will benefit from the incipient effort from organized labor. Mr. Bearak, a to block the term-limit extension. senior adviser to Fernando Ferrer’s “There will be a vigorous fight in losing campaign against Mr. the council that will make this a Bloomberg in 2005, admits that long-term controversy,and that will some labor unions will side with the frame the debate in the election,” mayor in the belief that he will win says Councilman Bill de Blasio,who and reward them. “Business trumps is marshaling opposition. party [loyalty], certainly for the la- To many political observers, the bor unions,” he says, recalling that Democratic dry spell appears certain many snubbed Mr.Ferrer.“For labor to continue.“The mayor is extreme- leaders,it’s about self-preservation.” ly popular, he has the power of incumbency, and he has the ability to The unions will be key put $100 million into his campaign,” public relations maven George says Assemblyman Vito Lopez, the Arzt,who was press secretary for Ed Democratic county chairman in Koch, the last multiterm Democra- Brooklyn.“All of those factors make tic mayor, concurs. “Some [unions] him probably unbeatable.” will go with the Democratic nomi- Others believe that Democrats, nee, but many will make their deals angered by what they consider a with Bloomberg,” he says. “No one self-serving power grab by the may- wants to be out in the cold for the or, will mobilize a multi- next four years, so they’re pronged attack to defeat not going to roll the dice him. They will try to exploit $8.57 with a candidate who may the blow to Mr.Bloomberg’s AMOUNT that not win rather than with an reputation that his term lim- the candidates overwhelming favorite.” will get for every its gambit will inflict (a $1 they are able The mayor has strength- Marist poll found that only to raise ened his relationship with 46% of voters believe he Democrats by dropping his should be allowed to run again). Republican party affiliation last year Challengers will attack the mayor and forging political alliances. He on his school policies, the ailing scored points with Sen. Charles economy, property taxes and high Schumer this summer by endorsing rates of poverty and homelessness, former Schumer aide Daniel Mr. de Blasio predicts. Squadron in a hard-fought Demo- They will have enough cash—if cratic primary against state Sen. Want to Know What Makes a Crain’s 40 Under 40? not as much as the mayor—to pub- Martin Connor. Helped by a licize that message. The city’s gen- Bloomberg robo-call and outreach Go to crainsnewyork.com/40under40 for online profiles and erous public financing program will by mayoral aides, Mr. Squadron video interviews featuring 20 plus years of past nominees. provide the Democratic nominee won. with $8.57 for every $1 raised. The mayor also campaigned with Brooklyn’s Simcha Felder,who A populist campaign lost his Senate primary but remains although newspaper editorial a City Council member in vote-rich boards and the business community Borough Park, and with Assembly- have already lined up behind Mr. man Adriano Espaillat, who won Bloomberg, public affairs consult- his primary in northern Manhattan. ant Corey Bearak says, “Running The efforts earned Mr. Bloomberg against an oligarchy is not a bad chits that he can cash in next year. thing.A populist campaign can succeed.” COMMENTS? A key question is how much sup- [email protected] THE CRAIN’S BEAT SHEET REPORTERS AMANDA FUNG REPORTER e-mail: [email protected] THERESA AGOVINO SENIOR REPORTER Covers technology and telecom. e-mail: [email protected] Covers commercial real estate. DANIEL MASSEY REPORTER e-mail: [email protected] AARON ELSTEIN SENIOR REPORTER Covers the New York economy, e-mail: [email protected] including labor and immigration. Covers Wall Street. ADRIANNE PASQUARELLI ERIK ENGQUIST SENIOR REPORTER REPORTER e-mail: [email protected] e-mail: [email protected] Covers politics and government, and Covers apparel and retail. works on Crain’s Insider newsletter. LISA FICKENSCHER HILARY POTKEWITZ SENIOR REPORTER REPORTER e-mail: [email protected] e-mail: [email protected] Covers tourism, restaurants, hotels. Covers legal issues, transportation and sports. Contributes to MATTHEW FLAMM SENIOR REPORTER “Neighborhood Journal” column. e-mail: [email protected] Covers media and entertainment. GALE SCOTT REPORTER e-mail: [email protected] MIRIAM KREININ SOUCCAR Covers hospitals and insurers, and SENIOR REPORTER works on Health Pulse newsletter. e-mail: [email protected] Covers the business of arts and culture. MATTHEW SOLLARS REPORTER e-mail: [email protected] BARBARA BENSON REPORTER Covers politics and government and e-mail: [email protected] works on Crain’s Insider. Contributes Works on Health Pulse newsletter. to “Neighborhood Journal” column.

10 | Crain’s New York Business | October 6, 2008 CNYB 10-06-08 A 11 10/3/2008 2:46 PM Page 1

My B D Passing AIDS baton powered my career Continued from Page 3 January.She says it will take months anyone would have imagined. to see if it works, years to bring it to “This virus is a bear.It’s very,very market if it does. bad,” says Dr. Schlesinger, who now That prospect is creating opti- at National Grid. works solely for Dr. Steinman. mism in an AIDS research commu- Dr. Patricia Fast, medical direc- nity that was devastated by the fail- tor at the International AIDS Vac- ure last year of a Merck vaccine, one At St. Francis College, we’ve been helping cine Initiative, a global nonprofit that attached AIDS antibody pro- students achieve their dreams for based in Manhattan, agrees. “Eigh- teins to a cold virus.Not only did the teen years ago, everyone thought vaccine not work, it appears to have 150 years. To learn more about how we’d have a vaccine within 10 years,” put those who received it at greater St. Francis can help you realize she says. risk of being infected. The setback “produced a major your dream, visit www.SFCNY.info. Much more difficult shift in the AIDS vaccine field,” ac- with expenses last year of $87 mil- cording to an IAVI analysis. Scien- lion, the research foundation is sec- tists now see a need for vaccines that ond only to the National Institutes have a multipronged attack plan, of Health in the amount of money it much as it takes a cocktail of drugs hands out annually for AIDS re- to keep the virus in check. search.“It has just been much,much Dr.Ho believes Dr.Schlesinger’s more difficult than any of us work could end up being incorpo- thought,” Dr. Fast adds. rated into a multifaceted vaccine. But some are saying Dr. “It’s a subset of an entire effort to de- Schlesinger’s new vaccine could be liver HIV proteins and get an immune response. Dendritic cell biol- ogy will help us,” he says. Looking back, Dr. Ho says it seems like longer than 18 years ago that his work as a 37-year-old UCLA virologist attracted the attention of the late Irene Diamond. The philanthropist had decided to take part of a fortune left by her husband, Aaron, the developer of Roosevelt Island, to create an AIDS research center. She took a chance on the young researcher.Dr. Ho, his botanical illustrator wife, and their three children moved to New York, and he’s never looked back, he says. AIDS research center his work also put New York City ‘We all want on the map not just as the center of the AIDS epidemic, but a center of Open House Sunday, October 26, 10am-1pm Brooklyn Heights, NY to be the one AIDS research, an endeavor that has brought billions of dollars to city to find the institutions and created a stellar community of AIDS scientists. vaccine’ Meanwhile, the epidemic rages on, with 100,000 New Yorkers living with the virus, and AIDS spreading most quickly among minority pop- ulations. “We all want to be the one to find the one that works. It builds on a the vaccine,” says Dr. Ho. “But as discovery that won Dr. Steinman a I’ve gotten older, and more philo- Lasker Prize last year, medicine’s sophical,I see it as a relay race.There equivalent of the Oscar. He found a is a distinct possibility that I will Put our team to new part of the immune system pass the baton to the next genera- called dendritic cells. tion.” Dr. Schlesinger’s trials of the work for you. dendritic cell vaccine will start in COMMENTS? [email protected]

EXPLORING CAREERS GROUP SEEKS HOST BUSINESSES THE GREATER NEW YORK COUNCILS’ Exploring program is seeking businesses to host educational sessions offering high school students the opportunity to explore various industries and make better decisions about possible career choices. The Exploring program puts together groups of 15 to 25 students interested in specific fields. The student groups meet at the host businesses Every one of our 48 brokers after school for four or more sessions, learning about career ladders, supports your sale. educational requirements, salaries and what people in their selected industries actually do. Businesses often arrange special projects customized for the students. Programs start throughout the year, and the timing is tailored to fit business schedules. Participating organizations include Bloomberg LP, NYU Medical Center and Crain’s New York Business. For more information, please visit www.nyexploring.org. www.easternconsolidated.com | 212.499.7700 CNYB 10-06-08 A 12 10/3/2008 1:40 PM Page 1

VIEWPOINT The long road to Nov. 3, 2009 editor in chief Rance Crain publisher, vp Jill R. Kaplan very day, some arm of the federal that a referendum can’t be held in the November election to editorial director Greg David government takes an unprecedented step give voters their say is that the mayor waited so long to decide EDITORIAL editor Xana Antunes to stem the financial crisis that threatens to seek a revision of the law. His vague statement that special managing editor Robert Hordt to plunge the nation, if not the world, elections are problematic is more than a little self-serving. deputy managing editors Valerie Block, Erik Ipsen into the worst economic downturn since If there is a backlash, it will set the stage for further assaults contributing editor the Great Depression. on the mayor, especially as he takes what are likely to be very Elizabeth MacBride columnist Alair Townsend That’s primarily the reason the city’s unpalatable steps to cut the budget, raise taxes and defer senior reporters Theresa Agovino, most stalwart supporters of term limits—the New York Post, Aaron Elstein, Erik Engquist, Lisa Fickenscher, development projects. Mr. Bloomberg’s political advisers Matthew Flamm, Miriam Kreinin Souccar the Daily News and cosmetics billionaire Ronald Lauder— must be thinking that the full impact won’t be felt until after reporters Barbara Benson, Amanda Fung, E Daniel Massey, Adrianne Pasquarelli, have decided to support Nov. 3, 2009. On this Hilary Potkewitz, Gale Scott, Matthew Sollars actions by the City Council Revoking term score, they are almost restaurant critic Bob Lape to change the term limits art director Steven Krupinski certainly wrong. deputy art directors Carolyn McClain, law and allow Mayor limits won’t All these considerations Daniel Mednick Michael Bloomberg to run are important for business staff photographer Buck Ennis ensure Mike’s copy desk chief Wendy Zuckerman for a third term. leaders—CEOs of the copy editors Michele Arboit, Thaddeus Rutkowski Today, Crain’s joins that re-election largest and most research editor Denise Southwood group. It is clear that the important companies in www.crainsnewyork.com web producers Kira Bindrim, financial crisis will mean the city—who for months Elisabeth Butler Cordova

hard times for New York, have been pressuring the EDITORIAL AND ADVERTISING OFFICES and that New Yorkers’ mayor to take this step. 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 confidence in their ability to They have acted as if his re-election was assured. With both advertising: 212.210.0259 weather the downturn is Comptroller William Thompson and Rep. Anthony Weiner Cable craincom nyk Fax 212.210.0499 being further eroded by the getty images vowing to run, that assumption may turn out to be untrue. Entire contents ©copyright 2008 Crain assumption that Mr. LIKING MIKE? Decisions by Mayor Bloomberg, It may even be best for the city if the mayor faces a strong Communications Inc. All rights reserved. shown after his 2001 win, may anger voters. ®CityBusiness is a registered trademark of MCP Bloomberg will leave office challenge. A full airing of the issues will educate the public as Inc., used under license agreement. in 15 months. to what is at stake and what the options are, and help them TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. Ironically, the mayor’s decision—especially since he did choose the course they prefer. $3.00 a copy, $59.79 one year, $109.79 two years. not ask voters for their concurrence on an issue they have That is what a democracy is all about. www.crainsnewyork.com twice decided in a referendum—may set in motion events ADVERTISING AND MARKETING advertising director Jeff Adler that could undercut his popularity. After all, the only reason COMMENTS? [email protected] senior account managers Cornelius P. Gore, William E. Squitieri commercial real estate sales manager Cory Marks 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 print & online John Gallagher Bloomberg: savior, nanny, dictator sales coordinator, print & online Lulé Haznedari sales coordinator Anita Perrino Crain’s poll respondents comment on have rules. However, an these two yahoos on the ballot. years, our government has steadily credit Todd J. Masura 313.446.6097 marketing director Amy Crossman whether Mayor Michael Bloomberg ambulance rushing to save a life is rick pulito reduced the services that it marketing manager Jill H. Bottomley should seek a third term. allowed to run red lights. Mayor provides to the poor, the sick and marketing coordinator Jenny Mashberg Bloomberg is not asking for a third NONPROFITS’ WOES, the elderly. While I laud the hard circulation manager Andrea Richardson MAYOR BLOOMBERG CAN BE a dollar- term because the economic SOCIETY’S FAILURE work that our nonprofits do assistant circulation manager a-year mayor, thereby saving the conditions force him to have a (having worked at several of Rosalie Ford city his salary. He is an salary. He recognizes the critical thanks to alair townsend for them), I am disappointed that we general manager, interactive extraordinary financial analyst nature of the situation and is highlighting the struggles that as a society continue to view Marc Minardo web developer, interactive who understands survival. asking to go through the red light. nonprofits will face in the wake of support for their important efforts Chris O’Donnell michele walker jim mcniff the current financial meltdown as optional, rather than obligatory. (“Harsh new reality for These service providers spend NEW YORK PRODUCTION WHY IS IT that when the supporters I AM VERY TIRED of our nonprofits,” Sept. 29).These an inordinate amount of time production and pre-press director Michael Corsi of Hugo Chavez and Evo Morales “supernanny,” who thinks he organizations provide crucial trying to raise funds, and, as Ms. advertising production manager seek referendums in their countries knows best about everything, services to our neediest neighbors, Townsend points out, those funds Marilyn DeMilta to overturn term limits, the including our personal habits. very often on minuscule budgets. are not always there to be had.The politicians and press in the United stuart summit It is sad to think that those who de facto privatization of human PUBLISHED BY CRAIN COMMUNICATIONS INC. chairman Keith E. Crain States scream “totalitarianism,” but already have it bad will soon have services has failed. If we want to president Rance Crain when Bloomberg and his gang do MICHAEL BLOOMBERG should not be it even worse. realize true efficiency in the secretary Merrilee Crain the same, it’s just a news story? running for mayor or even It is also worth remembering delivery of these services, it’s time treasurer Mary Kay Crain david arnow thinking about running for mayor why so many of these to take another look at providing executive vp, operations William Morrow next year. He should be running organizations exist. Quite simply, them through government. senior vp, group publisher Gloria Scoby MOST OF US group vp, technology, circulation, understand why we for president this year, instead of they are there because over the jonathan lachance manufacturing Robert C. Adams vice president/production & manufacturing David Kamis chief information officer Paul Dalpiaz WHAT’S COMING UP IN CRAIN’S? corporate circulation director Patrick Sheposh

Small Health Largest Business Growing a Best New York founder G.D. Crain Jr. (1885-1973) business care accounting firms of law Business companies chairman Mrs. G.D. Crain Jr. (1911-1996) report report in the NY area report Guide to work for Oct. 13 Oct. 20 Oct. 27 Nov. 3 Nov. 10 Nov. 17

12 | Crain’s New York Business | October 6, 2008 CNYB 10-06-08 A 13 10/3/2008 12:04 PM Page 1

Companies large and small rely on Amper, and

The day after WaMu was hand- you can too. ed over to J.P.Morgan Chase,the finance executive told his mother in no uncertain terms to move her checking and savings account out of Wachovia first thing Monday morning, as well as a small business account. None of the accounts exceeded the $100,000 insurance limit. The fact that someone so so- phisticated could be so worried speaks volumes about the level of fear in the air. When Citi rescued Wachovia last Monday, the mother’s money was safe. Not so the assets of her youngest son, a 29-year-old now starting a career in the construction industry. Years ago, when a small thrift in Westchester went public, his mother bought her son 100 shares for $1,100.After a series of mergers,the thrift was eventually absorbed by People’s Bank of Westchester, john h. howard which was acquired by First Union, which took over Wachovia and adopted the latter’s name. Through dividend reinvestment, the number Financial panic of shares has increased to 174,which less than a year ago were worth “Seeing Beyond the Numbers...” about $8,000. www.amper-pc.com takes new prisoners Even if a bidding war for Wa- chovia ensues, this young man will likely receive only several hundred hen what we used to call the credit cri- dollars for his shares.His primary fi- sis struck in August 2007, I had an unusual nancial cushion has disappeared. perspective on events. A 34-year-old I I’ve been a journalist for 38 years and specialized in business for three know, a rising trader and finance executive decades. I covered booms and busts at a global company, found himself in the in Chicago in the 1970s and came to Missed Crain’s Latest Event? middle of the maelstrom as he fought to keep his company’s New York in time to report on the W heady expansion of the 1980s. I funding secure.His days were endless,the tension level at work vividly remember the stories that Go to crainsnewyork.com/video for live footage unprecedented and his forebodings alarming. Crain’s did after the unparalleled of Crain’s popular newsmaker series. 22% drop in the market in October “It’s the worst crisis Today, everyone is 1987 and during the wrenching re- since the Depression,’’ on the front lines, and cession that followed. The terrorist he said at dinner one the situation is scary. attacks of Sept.11 and the hundreds night. The husband of a of stories we did in the subsequent He and people like Crain’s editor trans- months represented a new chapter him, along with those ferred some of his mon- in journalism for me. who were in danger of ey out of Washing- I thought I had covered every losing their homes, ton Mutual two weeks imaginable business story. were on the front lines. ago,even though feder- I have never covered a financial The rest of New York al insurance guaranteed panic, however. That’s why I was went about its business. his deposit. It turned skeptical of the prophetic warnings An economic slowdown GREG out that his move was of the young finance executive. seemed inevitable, but I DAVID just part of a $16.7 bil- That’s also why I can’t predict what wasn’t sure that the lion nationwide flight is in store for New York—except I young trader had enough from the thrift in a know that it will be very painful. experience to know whether the sit- 10-day period before the feds seized uation was really so dire. the institution. COMMENTS? [email protected]

CRAIN’S ONLINE POLL Should Mayor Bloomberg seek a third term? 417 VOTES No. New Yorkers Date of poll: Oct. 1 have made it clear Yes. Given the Wall they favor term Street crisis, the city . 40% 34% . limits. He should needs the mayor’s respect their business acumen decision more than ever Yes. None of the other candidates

who have expressed No. As the mayor an interest in . 15% 11%. has stated before, running match up no elected official to Mr. Bloomberg is indispensable

For readers’ comments, see Letters to the Editor on Page 12. bloomberg news

October 6, 2008 | Crain’s New York Business | 13 CNYB 10-06-08 A 14 10/3/2008 1:53 PM Page 1

others—such as citywide polls—did not. DOMINO EFFECT DISRUPTS THE INSIDER But campaign finance attorney Laurence Laufer says such RACES DOWN THE BALLOT an approach would probably be too cumbersome this time by Erik Engquist and Matthew Sollars around, when many more candidates have surpassed the mayor michael bloomberg’s announcement that he limits. intends to change the city’s term limits law and seek a third Term limit tales term changes the dynamics of dozens of races next year. Here’s a rundown of PUBLIC ADVOCATE HOPEFUL what would happen in various Queens, where Councilman Peter Vallone Jr. and contests: Assemblywoman Audrey Pfeffer had been favorites to succeed WANTS TO FIGHT THE POWER Comptroller. If incumbent her. Mr. Vallone won’t challenge Ms. Marshall. public advocate Betsy Gotbaum should be doing more to William Thompson indeed vacates City Council. With three dozen members suddenly free defend the people’s will on his post, the path clears for to seek re-election, more than 100 civic leaders eyeing their term limits, says attorney council members David Yassky, posts would shut down their campaigns. Some might take Norman Siegel (right), a Melinda Katz and David Weprin and a shot anyway, since they have money on hand and can candidate for the job in Bronx Borough President Adolfo shame incumbents who voted to extend their own terms. 2009. Mr. Siegel Carrión to run as planned. Only Not all incumbents are shoo-ins. For example, Kendall applauds Ms. Gotbaum’s Ms. Katz has said she will run Stewart of Brooklyn. Two of his aides face criminal charges, opposition to the City even if the comptroller seeks re- and he alienated allies by voting for congestion pricing last Council’s and Mayor election. spring. Michael Bloomberg’s Public advocate. Betsy attempts to extend limits getty images Gotbaum (left) says she will but says that she should consider running if limits are extended. She might lose. RECALIBRATING FINANCE make it clear she’ll Councilman Eric Gioia says he is committed to the race, and sue. “She’s taken attorney Norman Siegel will also run. Councilman John Liu and WILL BE A CONUNDRUM the right position; Manhattan Borough President Scott Stringer are dark horses. if terms are extended by four years, now she should use Council speaker. Christine Quinn (below) isn’t guaranteed to the Campaign Finance Board will her office to take this keep her post, despite giving her members the third term change its expenditure rules to on,” Mr. Siegel says. “If I they want. Discontent pervades the ranks, insiders say. accommodate council members who was there, I would be doing it.” Members expected her to extend their terms two years ago, abandon runs for higher office. Many A spokeswoman says Ms. which would have given them time have already spent far more than Gotbaum is “looking at all

to raise money and recover from what’s allowed for council races. But options”—which include getty images the bad publicity of their self- the board has not said how it will running for re-election if a third term is available. serving action. They’re also handle the donation question. unhappy that Ms. Quinn cut Comptroller candidates can receive their pet projects in June to $4,950 from an individual, but COUNCILMAN SEES NO TIE balance the city budget. only $2,750 for a council race. Borough presidents. In Brooklyn, The board has dealt with TO UPCOMING WILLETS VOTE Marty Markowitz this issue in 1997, when councilman Hiram Monserrate says the mayor’s bid to says he would Fernando Ferrer (right) change term limits won’t affect the City Council vote on the run for re- dropped his mayoral bid and administration’s Willets Point plan, despite rumors of a quid election.That ran for re-election as Bronx pro quo. Members should vote on the project’s merits, “not would knock borough president. The the politics,” Mr. Monserrate adds. Councilman Bill board said some of his He is vague when asked if he regrets running for the state de Blasio out of the mayoral campaign Senate now that another council term seems possible. race. Helen Marshall expenditures counted “Hindsight is always 20/20,” Mr. Monserrate says.The base ap images wants another term in buck ennis toward the limit, while council salary is $32,000 greater. Halloween stores expect treats

Though local stores like Abra- More shoppers cadabra on West 21st Street are not “Thanks to the Port of New York and Looking for the perfect running promotions this year to in- New Jersey, JVC is able to quickly and plan to celebrate; business experience? cite customers to pull out their wal- The port moves more than $150 efficiently deliver cutting edge tech- lets,shops are banking on must-have nology to your home and business. billion in cargo each year, from Miss Alaska popular flat screen TVs to flat head screws. costumes like Batman or the Joker. From flat panel TVs to home theater Todd Kenig, chief executive of systems, consumer video camcorders And it does it with your bottom BY ADRIANNE PASQUARELLI line in mind: beauty-supply chain Ricky’s, which to professional gear, JVC products opens several pop-up Halloween • The cost of doing business at deliver unforgettable moments through new york retailers are hoping stores in New York City each season, sound and images, and the port deliv- the port has decreased in the last decade the sudden surge of interest in Miss expects sales to increase by 10% this ers these products to you. Whether it’s Alaska costumes will scare up Hal- year, thanks to couples costumes professional sports or your child’s soc- • Port operations have become loween sales this year and provide a geared specifically toward New cer game, heavy metal or smooth jazz, more efficient, with direct respite from the financial worries Yorkers, such as a Client 9 and Em- environmental benefits JVC technology brings it to you with stunning realism. sweeping the city. peror’s Club outfit combination. The port provides the solid logistical support JVC needs • The Port of New York and New Jersey can help you reach Nearly 3% more shoppers plan to “For women, the No. 1 costume to deliver the power and the emotion of entertainment to the largest and wealthiest consumer market in the world celebrate Halloween this year com- will be Miss Alaska—it has a sash consumers worldwide. Because of the port, we bring it to You can depend on the port to make pared with the figure for 2007, ac- that says Miss Alaska on one side and our U.S. customers on time and at a reasonable cost.” your business picture perfect. cording to a Halloween consumer the other side says Miss Vice Presi- survey released Tuesday by the Na- dent.And it comes with glasses,”says Craig Geiger • Executive Vice President/Chief Operating Officer, • JVC Company of America tional Retail Federation. Mr. Kenig. Since the store’s outfits “This year, [Halloween] provides range from $29 to $59, he does not a nice distraction, given what’s going expect cutbacks from loyal shoppers. on,” says M. Xaviar O’Connor, assis- Pricier shops do not expect sales tant store manager at Halloween to jump but are hopeful they will not Scene, which is open in the South decline. During September, Abra- Street Seaport from August through cadabra co-owner Rob Pinzon saw The men and women of the port of New York and New Jersey... November. Mr. O’Connor, a veteran shoppers come in to browse.He pre- staffer of other Big Apple spook sta- dicts the big spending will hit by the ples like Halloween Adventure, second week of October. Abracadabra and Ricky’s NYC, ex- New York Shipping Association, Inc. © 2008 plains that Halloween is beginning COMMENTS? to rival Christmas in popularity. [email protected]

14 | Crain’s New York Business | October 6, 2008 fp template.qxd 9/4/08 6:07 PM Page 1

Our opinion: When the IRS gives you a break, take it.

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

ECONOMIC SPOTLIGHT Pfizer skips hearts for other research pfizer inc. ended its research programs in heart disease and switched its focus to areas with less competition and more growth opportunities. Its new priorities include Alzheimer’s, cancer, diabetes and schizophrenia. Pfizer will continue testing drugs that have reached the human testing stage. AIG selling share of U.K. airport american international Group Inc. agreed to sell its 50% stake in London City Airport to ap images private equity fund Global Infrastructure Partners, which Latest Pier 40 plan rotted already owns 50%. Terms were undisclosed. The insurer needs to A LAST-DITCH EFFORT to find a developer for PIER 40, a pay off an $85 billion emergency crumbling structure in TriBeCa, fizzled when two interested loan from the U.S. government. groups failed to meet criteria set by the HUDSON RIVER PARK TRUST. A joint plan by nonprofit Urban Dove and camp Star-Ledger steps operator CampGroup generated little support and was the away from edge Economy Watch latest in a string of proposals to miss the mark. The trust didn’t say how it would proceed. new jersey’s largest newspaper, The New York area’s inflation rate rose slightly in July and August. Over the The Star-Ledger, might avoid same period, the city’s jobless rate rose, though it stayed below the U.S. rate. closure after at least a quarter of its JULY ’08 AUGUST ’08 COMPARISON full-time, nonunion employees NY area inflation change +0.7% +0.1.% +5.4%1 Office said U.S. aviation officials applied for a buyout. Its owners Ciena Capital have no authority to auction off had warned that the paper would NYC unemployment rate 5.8% 2 5.0% 6.1% seeks Chapter 11 flight slots at airports. New York close this month if certain cost- NYC employment change n/a n/a n/a3 area airlines and airport operators saving measures failed. 1-NY area inflation rate for the latest 12-month period. 2-U.S. unemployment rate for the citing declining real estate and the Federal Aviation latest month. 3-NYC employment change year to date. values and a shrinking number of Administration have been fighting loan buyers, commercial real estate over the plan, which was designed Delia’s unloading lender Ciena Capital filed for to curb flight delays. unit to Foot Locker NYC Hotel Stats Broadway Stats bankruptcy protection.The Manhattan-based company owes athletic apparel retailer Foot Occupancy and room rate declined Attendance and gross both rose Judge to suit: in July, PKF Consulting data show. during the week that ended Sept. more than $100 million, including Locker Inc. announced plans to $1.8 million to the U.S. Small buy catalog retailer Delia Inc.’s Year-to-date averages—at 85.5% 21, according to The Broadway ‘You’re aufed!’ and $296.80, respectively—topped League. Season-to-date figures for Business Administration. CCS business for $102 million. those for the same period in ’07, attendance and gross topped last u.s. district judge Loretta CCS is a direct-to-consumer which were 84.4% and $275.36. year’s results. Sun flames out Preska dismissed a lawsuit retailer that sells skateboard charging model Heidi Klum and apparel and accessories online and the new york sun ended its six- others of stealing the concept for via catalog. It is expected to and-a-half-year run after as its reality show Project Runway.A generate at least $80 million in owners failed to find investors to fashion designer and a revenue in 2009. keep the merchandiser had claimed that conservative- they came up with the idea first. leaning The series is one of the most City fired up over broadsheet popular on Bravo. illegal smokes afloat. More than 100 people Columbia schooled new york city is suing eight lost their jobs, tobacco shops that sell tax-free and a small just three new york schools cigarettes on the Poospatuck staff will work were included in The Wall Street Indian Reservation on Long to shut down the Journal’s inaugural list of the Top Island. Mayor Michael Bloomberg business by the end of the year. 25 Executive M.B.A. programs. charged the stores with illegally Columbia University ranked No. selling to people who do not live Capital IQ’s Weekly Deals Report 8, New York University’s Stern on the reservation. Each resident Florida sues School was No. 14 and Fordham would have to smoke 960 packs a TRANSACTION SIZE University came in at No. 25. day to account for current sales. COMPANY/LOCATION (in millions) BUYER/INVESTOR TRANSACTION TYPE drugmaker —from staff reports and Goldman Sachs Group Inc. $5,000.0 Berkshire Hathaway Inc. GCI florida joined eight other states bloomberg news reports Manhattan in suing Merck & Co. over the Gov. offers bridges, Washington Mutual Bank $1,900.0 J.P. Morgan Chase & Co., SB M&A marketing of Vioxx.The Sunshine Seattle Manhattan highways for lease State is seeking restitution for all OpTier Inc. $47.5 Cisco Systems Inc., Gemini Israel GCI Manhattan Funds, Index Ventures, Pitango money spent by state health gov. david paterson asked for Venture Capital, Carmel Ventures, programs on the prescription proposals for private contractors to Lightspeed Venture Partners, painkiller, plus interest. Its lease state assets, which could Morgan Stanley Medicaid program alone spent include the lottery as well as Connectiva Systems Inc. $17.0 SAP Ventures, International Finance GCI more than $80 million on the highways and bridges.The public- Manhattan Corp., Ovation Capital Partners, NEA-IndoUS Ventures drug. private partnership plans, due in January, are supposed to cut state Selected deals announced during the week of Sept. 21 for companies headquartered in metro New York. GCI: Growth capital investment represents new money invested in a company for a minor- costs and generate steady revenue. ity stake. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of exist- GAO rebukes FAA Unions whose members could

ing shares of a company without the participation of a financial buyer. congressional investigators find themselves working for a ap images

bekka lindström bekka at the Government Accountability private firm voiced concern. THE CITY has filed suit against smoke shops.

16 | Crain’s New York Business | October 6, 2008 Project2 9/23/08 1:33 PM Page 1 fullpagead_crains.eps 9/22/08 2:37:59 PM

Managing Talent in a Turbulent Economy

Join Crain’s New York Business and Workforce Management for this critical morning conference in New York City exploring talent management for all seasons, including the art of retaining and finding key people while managing through the layoffs, cutbacks and workplace restructurings that are rippling through the current business environment.

Hear keynote speaker Kevin Ryan, founder and former CEO of DoubleClick, and his com- pelling message about how to manage talent through both good times and bad. He'll also KEVIN RYAN join our panel of experts — moderated by Crain’s editor, Greg David and Workforce Manage- Founder and Former CEO DOUBLECLICK ment editor, John Hollon — for a lively panel discussion on this timely topic.

DATE Wednesday, October 29, 2008 TIME JANET HANSON 7:30 - 8:00am Registration Founder 8:00 - 8:30am Networking Breakfast 85 BROADS 8:30 - 9:15am Keynote – Kevin Ryan, founder and former CEO, DoubleClick 9:15 - 9:30am Networking Break 9:30 - 10:15am Panel Discussion 10:15 - 10:30am Q&A

VENUE Roosevelt Hotel RON THOMAS Former VP, Organizational Development Grand Ballroom MARTHA STEWART LIVING Madison at 45th Street New York, NY

TICKETS $139 for tickets if prepaid by October 8, $149 thereafter $1250 for tables of 10 if prepaid by October 8, $1500 thereafter To purchase tickets, go to crainsnewyork.com/talent. RENEE RUSSELL Executive Director, Global Talent Management You must be pre-registered to attend this event. All tickets are non-refundable. AVON PRODUCTS For more information, please call the Event Hotline at 212.210.0739.

presented by CNYB 10-06-08 A 18 10/1/2008 7:32 PM Page 1

SMALL BUSINESS

so many bids—by going broad while other enterprises stayed narrow. Firm sets sites on venue-based ads “There are lots of companies in this category,but few have been able to achieve the scope Brand Connec- The venue-based market THE than 50 bids on the table. tions has,” says Sanjay Chadda of Becomes major player in new category: is small but growing fast,even GRADUATES Manhattan private eq- Petsky Prunier, the advisers that during the economic down- Part of a series uity firm Veronis Suhler brokered the deal with VSS. “They touting brands on ski slopes, airplane trays on firms that turn, as more consumer- have outgrown Stevenson eventually paid have a diverse set of assets, whereas offers at the most. brand companies become the ranks of more than $150 million for other companies would be more BY MAYA KREMEN Revenues for the seven-year-old aware of this relatively new small businesses a majority stake in the specialized in one venue.” company—which coordinates com- kind of advertising. Hun- company, which Mr. Mar- arly this year, when panies’ advertising campaigns in lo- dreds of companies looking to tin started with $900 of his Stashing the cash Brian Martin was look- cations like airplanes, golf courses provide brands with ad space own money.He will use the mr. martin didn’t spend money ing for a major investor and ski resorts—had grown by an everywhere from doctors’ of- funds to acquire rivals. early on to open offices, and didn’t in his marketing busi- average of more than 50% a year for fices to elevators have cropped up. Brand Connections was able to hire employees until 2003. Instead, ness, Brand Connec- the past four years. But his compe- So Mr. Martin was surprised to grow into one of the powerhouses of he started putting more than $10 Etions, he thought he’d garner 10 tition was also exploding. learn in March that he had more this emerging market—and attract million from revenues and private equity funds toward acquiring companies with exclusive rights to ad- vertise at various ski resorts, golf courses, airplanes and other locations. He recently received the Eu- ropean patent to put ads on seat- back tray tables in planes and trains. Once he had access to a fairly broad array of venues, he was able to expand his client roster. He convinced major companies including Mercedes-Benz and Microsoft to market their products on cruise ships, in hotel lobbies and at other places not colonized by other advertisers. Coca-Cola’s Odwalla brand hired Brand Connections to coordinate a $2.2B campaign in MEDIA SPENDING ski resorts, be- in the “alternative cause of the out-of-home” chance to “sur- category in 2007, round the con- a 28.5% gain sumer with the Source: PQ Media message,” says Chris Brandt, marketing vice president.The campaign included free juice samples as well as videos on plasma screens at lift lines. “It’s not as cluttered an environment, and you’re more relaxed and open to new things,”Mr.Brandt says. Brand Connections has worked with between 350 and 500 brands in the past three years.The outlook for the company remains strong,despite the economic slump.With the infu- Perfect Together ® sion of capital, it won’t have to rely Get a Sterling VISA on loans in the tight credit market. $ * Sterling National Bank knows what growing businesses need. 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COMMENTS? [email protected]

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REAL ESTATE INSIDE The largest construction companies in the New York area, ranked by projected 2008 area revenues PAGE 28 Deals Directory assistance firm gets revamped number on Madison PAGE 31

Developers enlisting High Line elevates partners to help out far West Side Innovative park spurs development in once-forlorn area Facing harsher creditor demands, they share costs VIEW-CHANGERS: Friends of the High Line, and possible gains co-founded by Josh David (far left) and John Hammond, are credited BY TINA TRASTER with saving what was left of the railway. developers were once a soli- tary lot.That is changing—fast. Ron Moelis found out why in June when he went looking for financing for his $55 million, 150-unit rental/condo project in Cobble Hill, Brook- lyn. That is when he was told that instead of coming up with the $5 million or $10 million he’d expected to have to put up in cash, his lenders were asking for nearly $17 million. On top of that,the bank insisted on “re- course”—holding his development team responsible for 20% of the value of the loan in case of a default. “The lending industry has def- initely changed,” says Mr. Moelis, chief executive of L+M Develop- PROPERTY ment Partners. In response, CRUNCH he did what more SWAMPED BY and more of his SPEC SPACE peers are doing. 12M sq. ft. may go begging He took on a Page 26 partner, an arm ABOUT-FACE of Goldman Apartment Sachs. developers “We figured it trade sales for would be healthy buck ennis rentals Page 27 to give up some of our profit and founded the Friends of the High Line.The organization is BY ANDREW MARKS control in exchange for an equi- credited with saving the remaining 1.5-mile stretch of the ty source at a time when banks elevated freight railway line above 10th Avenue and turning have little appetite for lending,” people almost had trouble getting to Craftsteak on says Mr. Moelis. 10th Avenue to attend the annual gala benefit for High Line it into New York’s most-discussed park in decades. “The Welcome to the club. Joint park last month. Formerly gritty, deserted sidewalks were change in such a short time is beyond anything I would venture is the new buzz phrase thronged with restaurant-goers making their way to such have imagined,” Mr. David says. among residential and commercial developers looking to establishments as Del Posto and Morimoto and window- Ever since the city turned a vast swath of Manhattan get their projects off the shopping at the Apple Store, Hugo Boss and other trendy filled with squatters, waste heaps and sheep into Central ground, or simply to hold on to retailers. Park—transforming the surrounding them in the face of a slumping What a switch. blocks into New York’s choicest real economy and turmoil on Wall Street. Developers are wooing “Just four years ago, there were so estate—planners and developers have equity partners ranging from many abandoned buildings, crack GREEN hailed the power of parks to draw people investment banks to hedge dealers and homeless people that it and generate prosperity. funds and high-net-worth in- POWER “We’ve witnessed it time and time dividuals for extra cash. Such wasn’t a place I was comfortable partnering helps developers walking through,” says Josh David, GILDED SHORES: Hudson River and Brooklyn again,” says Kent Barwick, president of See DEVELOPERS on Page 22 who along with John Hammond co- Bridge parks give surroundings a lift PAGE 24 See HIGH LINE on Page 24

October 6, 2008 | Crain’s New York Business | 21 CNYB 10-06-08 A 22 10/1/2008 6:49 PM Page 1

REPORT REAL ESTATE

Developers enlisting partners BROKERS’ NEW GIG WITH THE ECONOMY FALTERING and deal volume sagging, a growing number of real estate brokers are taking up a new line of work—helping banks and Continued from Page 21 being in any way distressed, accord- building into a condo. developers cope with financial indigestion. spread risk,especially in an era when ing to Howard Landsberg, a partner Able to come up with only 70% “The real estate brokerage community is shifting gears from real estate creditors are increasingly demand- at accounting firm Weiser. of the $100 million in cash that his sales to brokering nonperforming loans,” says Eric Anton, executive ing that they put their personal for- lenders were asking for, the devel- managing director at Eastern Consolidated. Tough terms tunes on the line. oper approached a private equity Working for a bank that had been left holding a $21 million mortgage on a But the help can be costly in terms one of mr. landsberg’s clients firm. struggling Manhattan apartment building late last year, Mr. Anton sold the of both the amount of equity the de- found that out recently when he “The firm wanted 100% control mortgage to a private investor for a mere $16.7 million. veloper has to give up and price he went looking for an equity partner of the deal, and wanted the profits “The buyer ended up with a 20% discount,” says Mr. Anton, who says gets for it. Those costs can be espe- in his planned conversion of a 20- split 75%-25% in their favor,” says that he expects that by the end of this year, the discount on the debt on cially steep if the developer is seen as story Upper West Side apartment Mr. Landsberg, whose client reluc- “overleveraged properties” will climb to 40%. tantly took the offer. “Those are pretty onerous terms.” Others, in less dire need of funding, have gotten better terms less debt.” Building and three other properties from their partners, but even then To many observers, the lessons once held by Harry Macklowe— there are other costs:time and com- are clear. was also a joint venture. The deal plexity. “Only well-capitalized compa- teamed Boston Properties, Gold- “Construction loans are easily nies can develop these days,” says man Sachs and a Dubai-based in- taking 12 to 16 months to com- Steven Kohn, presi- vestment firm. plete—double what they used to dent of real estate fi- Momentum be- take—because the deals are more nancial services firm hind such partner- layered,” says Richard Bassuk, pres- Cushman & Wake- ships is still build- ident of The Singer and Bassuk Or- field Sonnenblick ing. ganization, a real estate financial Goldman. Earlier this services firm. month,for example, Faced with demands from his Big deals GFI Capital Re- lender to come up with 30% of the at this point, that sources and the $40 million cost of building a 16- lesson also applies to Carlyle Group an- story condominium in Chelsea, large-scale com- nounced the forma- Stephen Glascock quickly went mercial developers, tion of a $300 mil- looking for partners.To put the deal many of which are lion fund that will together, he had to bring in not one reaching out to be used to purchase but three of them. partners. distressed apart- “The pressures to get loans these In recent months, ment buildings. days are far greater,” remarks Mr. Sherwood Equities GROUP EFFORT: L+M’s project in Glascock, president of Anbau En- joined with an un- The deal to Cobble Hill is being purchase the GM terprises Inc. “Sure, it made things named institutional Building was a funded via a $100 more complicated, but in the end I investor to buy 370 joint venture. million joint venture have more equity in the project and Lexington Ave. for called GSLM Capi-

$155 million, and buck ennis tal Partners, which L&L Holding Co. Mr. Moelis’ compa- teamed up with Prudential Real ny created together with Goldman Estate Investors to snap up $500 Sachs in May. million worth of office buildings. “We see this as the way to go,” he The biggest commercial proper- says. ty deal of the year—the $3.95 billion purchase of the General Motors COMMENTS? [email protected]

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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 estate professionals. Tuesday e-mail Sign up today for Crain’s Real Estate Insider, a Back issues Use the archives to find weekly e-mail newsletter featuring Crain’s the latest deals, events and stories in any personnel moves in one of the previous hottest industries. To register, go to edition of the www.crainsnewyork.com/ paper. signup. Subscribe Use the Breaking news E-mail alerts “Subscrip- keep you up-to-date on tions” link at developments in the New York the bottom area real estate business as they of the Web site’s home page to order happen. the weekly print edition of Crain’s Company alerts Visitors to the New York Business; digital Crain’s Web site can sign up for subscriptions to the newspaper; and e-mail alerts that provide news Crain’s two daily online publications, about a particular real estate the Insider political newsletter and brokerage or firm. the Pulse health care newsletter.

22 | Crain’s New York Business | October 6, 2008 Project6 9/24/08 3:26 PM Page 1 We’re Building a Quality New York

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REPORT REAL ESTATE High Line elevates far W. Side

Continued from Page 21 a collection of building spurred the Municipal Art Society. “Green abandoned facto- by soaring prices open space is such a precious com- ries, a scrap yard, a High Line primer means many will modity in an ur- beer distributor- have that view GREEN ban setting that ship, and several Location 10th Avenue, from year-round. Aver- when you create a garages and park- Gansevoort to 34th streets age apartment wonderful ing lots. Built 1929-1934 rents have jumped POWER amenity like a “The park has Height 18’-30’ nearly 44% since park,the adjacent brought a sense of 2003, to $4,100 a neighborhoods take bloom.” excitement and at- Size 1.45 miles long, 6.7 acres month, according After decades of inaction, New tention to the Cost $170 million to Halstead Prop- HUDSON R. PARK DRAWS CROWD York is rediscovering that important area,” says Charles erties. Similarly, linkage. Brooklyn Bridge and Hud- Blaichman, who is SECTION 1 (from Gansevoort the average condo WHEN WORK WAS STILL under way on the first son River parks are taking root along developing his to West 20th streets) price has soared al- section of the West Side’s five-mile-long once-inaccessible sections of the wa- third property Opening December 2008 most 47%, to waterfront park in 2003, officials of the terfront,while the High Line is blos- there: the High $1,070 a square Hudson River Park Trust wondered how the Hudson River SECTION 2 soming on a railway that once served Line Building, a (West 20th to West foot, over the same public would react to having easy river Park primer 34th streets) the city’s manufacturing base. 10-story, 110,000- period. access, as well as amenities that included Location From Battery square-foot office Planned opening Late 2009 +Art, a 13-sto- ballfields, boathouses and dog runs. Place to West 59th Street Difficult trade-off tower at 450 W. ry condo at 540 W. It wasn’t until they saw the first of because such developments take 14th St. 28th St., is one of renowned architect Richard Meier’s trio of Size 150 acres cash, and lots of it, the financial cri- The building, which literally the 17 residential buildings that are sleek condos overlooking the river being Projected cost $500 million sis will undoubtedly slow the straddles the park, is still eight finished or expected to be by year’s built that they had an inkling that their new process, especially as the new green months from opening but has drawn end. Its sales office opened last First section (West Village) park would help turn the western edge of completion 2003 spaces are set up to be self-support- tenant commitments, including month, and developer Erik Eck- lower Manhattan into one of the city’s ing. Revenue from developments is from designer Helmut Lang, who stein is marketing the 88 units—at hottest residential strips. Next section (TriBeCa and expected to cover the tab for park has taken two floors. an average of $1,325 a square foot— Since the park began coming together, Chelsea) completion 2010 maintenance,a trade-off that has fu- Meanwhile, design and develop- to the arts community. Amenities decrepit blocks lining the highway from eled rows between community ment firm Flank has lavished $42 include what is being billed as a pro- TriBeCa through Clinton in the West 40s have seen vast improvement. groups and developers over the scale million on converting a four-story fessionally curated art gallery in the “The parts of the West Village and TriBeCa near the river went crazy, and of construction projects. hanger factory at 520 W. 27th St. lobby. Important progress has been into a 60,000-square-foot commer- Sean Ludwick, principal at Black at its height last year we were seeing land in the West 40s that nobody made nonetheless,and more is on tap. cial condominium. Within five House Development,is also banking wanted five years ago sell at more than $400 a square foot,” says Ron Nowhere has change come more months of its opening in March, all on the art set. He is spending $405 a Solarz of real estate brokers Eastern Consolidated. quickly and dramatically than along 12 units, priced at $1,100 a square square foot to build the 60-room Funding has been a struggle, however. A redevelopment of Pier 40 was the 22-block strip beneath the High foot, had been sold, says Flank’s High Line Hotel on West 27th expected to provide $19 million—40% of the park’s annual operating costs. Line, where $900 million worth of managing director, Tim Crowley. Street.The hotel is expected to open But community leaders rejected The Related Companies’ plan for a projects are under way, according to Far West Chelsea might have in early 2010. $626 million entertainment complex there as too commercial. No substitute city figures. Though people won’t be taken off regardless of the park, but All the development, plus the proposal has yet been found. Other projects have proceeded, including 1 able to walk along its paths for a few not to this degree,Mr.Crowley says. park, is attracting people and shops. Morton Square, a $200 million, 283-unit building near Mr. Meier’s towers. weeks, the high-profile green space He points to the starchitects work- “It’s an incredible draw for retail- has helped make its environs into a ing on projects there, including ers,” says Karen Bellantoni, vice center for art galleries, luxury bou- Renzo Piano, who is designing the president at Robert K. Futterman & tiques, prestige apartments and even Whitney Museum offshoot slated Associates, who placed Apple and offices—and developers are lining up for the High Line’s southern end. Hugo Boss at 401 W. 14th St., the to add more. “Shigeru Ban, Annabelle Sell- southern terminus of the High Line, Not bad for an industrial-era rel- dorf, Jean Nouvel, Richard Meier— at a reported $400 a square foot. ic whose value was disputed by local 20 years from now, people will be property owners as late as 2003,when coming from around the world to Asking for the moon their attempts to get the city to de- walk the High Line and see this ar- today, asking retail rents are close molish it were defeated once and for chitecture,” he says. to $200 a square foot on 10th Av- all. Back then, the area was home to An explosion in residential enue in the West 20s, including along the restaurant row from West 14th to West 24th streets.Five years ago, those rents ranged from $35 to $45 a square foot. The district’s newfound status TIDE RISING ON BROOKLYN PIERS has inspired landlords to ask the moon—and prompted developers TWENTY-TWO YEARS AFTER plans were unveiled for a 1.3-mile-long park along to pay it.In the past 18 months,Ron the East River below Brooklyn Heights, work is under way. The first section is Solarz, a director at real estate firm expected to open late next year and the last in 2012. Already, there is little Eastern Consolidated, has sold land doubt about the almost-magical effect the park has had on adjacent adjacent to the High Line for as neighborhoods. Included in the blueprint for the 85 acres are 1,250 much as $533 a square foot. Lately, residential units, 225 hotel rooms, 150,000 square feet of retail space and typical sale prices range from $350 86,000 square feet of retail space. to $425 a square foot, about triple That development is intended to help what owners were getting in 2003. generate the $15 million a year needed to While the first section of the operate the park, whose features will include High Line is assured, the second Brooklyn Bridge four miles of floating and fixed walkways and part looks anything but. Supporters Park primer a restored lagoon. The plans have prodded a recently charged that The Related Total size 85 acres horde of private developers into action and Companies,which is developing the Phase I size 65 acres touched off a debate among community vast Hudson Yards site along the members over the scale of the additions, river, is backing away from its com- Phase I cost $230 million which resulted in some downscaling. But mitment to restore the northern end Phase I completion work has continued throughout the process. URBAN RENEWAL: of the High Line. What impact the 2009 The group that Messrs. “You can’t begin to exaggerate the Hammond and David financial crisis will have on plans to positive effect the park has had on real estate in downtown Brooklyn,” says build millions of square feet of office founded helped Gregory Atkins, chairman of the Downtown Brooklyn Waterfront Local galvanize the effort to space over the yards now looms as an restore the railway. even bigger question. Development Corp. and director of development for V3 Hotels. V3 plans to build two hotels along the Brooklyn waterfront.

buck ennis COMMENTS? [email protected]

24 | Crain’s New York Business | October 6, 2008 Project10 9/30/08 1:48 PM Page 1

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REPORT REAL ESTATE

add 644,000 square feet of space to Representation. At a time of eco- the market when it opens next year. nomic growth,finding tenants for the Spec towers sans tenants Off on the horizon are the pro- space would be a snap. But not now. verbial 800-pound gorillas: the Free- The battle for large-scale space dom Tower and Larry Silverstein’s users is already heating up.Current- planned 3 World Trade Center build- ly, 35 blocks of at least 100,000 weigh heavily on market ings,which together would add near- square feet are available in midtown, ly 10 million square feet to the mix. says Jeffrey Peck, a corporate man- Combined, all the completed aging director at real estate broker lowe wants to lease the building,” Square.It is being gutted and rebuilt projects will increase the city’s office Studley Inc. At this time last year, Fresh space coming says Robert Sammons, director of by owner Africa Israel,which in Au- vacancy rate by 3 percentage points, there were 21 blocks of that size. on stream just as firms research at commercial real estate gust signed on a partner to share the says Marisa Manley, president of Mr. Silverstein’s 1.7 million- services firm Colliers ABR Inc. burden. That tenantless project will Commercial Tenant Real Estate square-foot 7 WTC provides a downsize in bad times That may be an understatement. glimpse of how difficult it may be to Macklowe is one of several develop- fill such spaces: Two years after the BY STEVE GARMHAUSEN ers that will add a total of 12 million TOWERING CHALLENGES spec tower was completed, its top feet of office space to the market 510 MADISON AVE. THE OLD NEW YORK TIMES BUILDING seven floors stand empty. with its shimmering glass-cur- over the next few years without hav- Brokers representing some of the LOCATION LOCATION tain wall,prime location in the Plaza ing lined up tenants in advance. Corner of East West 43rd St. new spec buildings insist that their 53rd St. and Madison Ave. between Seventh and Eighth district and thoroughly green de- Given that the economy is founder- aves. prospects are excellent. Mary Ann sign, Macklowe Properties’ nearly ing, Wall Street is in turmoil, and COMPLETION Late 2008 Tighe, chief executive of the New completed office tower at 510 Madi- several big companies are looking to OFFICE SQ. FT. 329,000 COMPLETION 2009 York tristate region for CB Richard son Ave.qualifies as a genuine jewel. unload space, filling that empty BROKER CBRE OFFICE SQ. FT. 644,000 Ellis, claims that the unparalleled There’s just one acreage will pose a huge challenge. EXPECTED ASKING RENT BROKER CBRE amenities in the newly built element that the That’s certainly the case at the $130-$180 EXPECTED ASKING RENT spaces—including state-of-the-art building needs: city’s marquee speculative tower,SJP $80-$125 wiring and cooling systems—will be tenants. As Mack- Properties’11 Times Square.Though powerful lures. She ought to know: 11 TIMES SQUARE 7 WORLD TRADE CENTER lowe readies the 30- the opening of the building is little Her firm represents 510 Madison, story property for more than a year away,SJP has yet to LOCATION West 42nd St. and LOCATION 250 Greenwich St. 11 Times Square, the old New York occupancy late this sign the first tenant for its 1 million Eighth Ave. COMPLETION Times building and 7 World Trade. PROPERTY year, it has just one square feet of office space. What’s COMPLETION Late 2009 2006 However, it remains to be seen office tenant; in- more, the building’s location—di- OFFICE SQ. FT. 1.0 million OFFICE SQ. FT. 1.7 million how much of a premium tenants will CRUNCH vestment firm Jay rectly across Eighth Avenue from BROKER CBRE BROKER CBRE pay for cutting-edge attributes at a Goldman & Co. has signed on for a the gritty Port Authority Bus Ter- EXPECTED ASKING RENT ASKING RENT $75-$85 time when purveyors of older space mere 11,500 square feet of the minal—leaves much to be desired. $110 in the base; $140 in will hold a huge pricing advantage. 329,000 available. Then there’s the old New York the tower Source: Colliers ABR Inc. “It might take longer than Mack- Times Building, just west of Times COMMENTS? [email protected]

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26 | Crain’s New York Business | October 6, 2008 CNYB 10-06-08 A 27 10/1/2008 6:48 PM Page 1

REPORT REAL ESTATE Owners opt for rentals over sales

Aptsandlofts.com as the broker. square foot. After drawing little seri- Harlem,eight units had With buyers scarce, The company is also renting ous interest, they hung out the “For been rented by last Rent” sign. A 760-square-foot one- month, including three DUMBO is one area leases provide way apartments at several other Brook- where condo units are lyn buildings originally positioned bedroom there is now being offered that were taken under being rented out. to generate needed as condos, mainly in Williamsburg for just under $2,800 a month.Near- four-year leases by the and Dumbo. by, at 133 Water St. in Dumbo, the New York School of Po- bloomberg news project cash flow developer didn’t even try to sell his 52 diatry for use as student housing. wait up to 10 years for market condi- Waited long enough condominiums. Instead, they are be- Rents are in the $40-a-square-foot tions to turn around. “Another cycle BY WENDY DAVIS at one of those, 99 Gold St. in ing marketed as rentals. The asking range,or around $4,000 a month for will come and go,”he says.“The mar- Dumbo, the owners kept their 88 rent for a 912-square-foot one-bed- a two-bedroom unit. ket will come back to me.” when developer Michael Wald- units on the market for nine months room apartment is $3,000. North Manhattan Construction’s man put his new luxury apartments at prices averaging more than $800 a At The Bridges North in East Mr. Waldman says he is prepared to COMMENTS? [email protected] in East Harlem on the market last year,he expected them to fetch close to $1 million apiece. When buyers instead balked at the price, which worked out to roughly $600 a square foot, Mr. Waldman turned to Plan B. In May he put all 18 units up for rent. “We didn’t like the offers we were getting,but we didn’t want to just dump the building and go away,” said Mr. Waldman,president of North Man- hattan Construc- tion, developer of The Bridges North. He is one of a growing number of developers across the city that are LANDMARKED PROPERTY renting units that,in better times, they CRUNCH had hoped to sell. The phenomenon is especially pro- nounced in fringe areas like East RFR REALTY, LLC IS PROUD TO ANNOUNCE Harlem and Brooklyn’s Williams- burg and Greenpoint, where buyer THE DESIGNATION OF LANDMARK STATUS TO resistance is most severe.Lower land costs in those areas also make such THIS ART-DECO GEM... conversions easier for developers to stomach financially, as rents go further toward covering their costs. ANOTHER IN OUR PORTFOLIO OF Converting to rentals on a temporary basis is often smarter than al- LANDMARK BUILDINGS. lowing units to sit vacant, notes Steve Goldschmidt, senior vice president at Warburg Realty Part- nership Marketing Group. “Devel- opers don’t want to own a ghost town,” he says. Repayment in 3 to 5 years some developers,however,may have no choice. Lenders typically SUITES OF 1,500 - 3,500 SF AVAILABLE expect repayment of construction TOWER FLOOR OF 3,500 SF AVAILABLE loans in three to five years, which might be impossible in more expen- sive buildings without the hefty up- front income generated by sales, notes Carl Schwartz,a partner in the real estate department at law firm Herrick Feinstein. Of course, lenders get even less money if the units fail to sell, which is precisely why some creditors are cutting deals allowing developers to switch to rentals to at least generate some cash flow. One of the lucky converters is Henry Zilberman, principal devel- Oliver Katcher oper of the Mynt, a 72-unit luxury 212-883-0526 condominium on Myrtle Avenue in [email protected] Brooklyn’s Bedford-Stuyvesant.The www.RFRrealty.com developer hoped to get around $600 a square foot, says David Maundrell, president of Brooklyn brokerage Aptsandlofts.com. When buyers failed to materialize last year, the building went rental—at rates of around $2,100 a month for an 800- square-foot one-bedroom, with

October 6, 2008 | Crain’s New York Business | 27 CNYB 10-06-08 A 28 10/1/2008 7:46 PM Page 1

REPORT REAL ESTATE NY Area’s Largest Construction Companies Ranked by projected 2008 area revenues Projected 2008 2007 Projected 2008 2007 NY area NY area companywide companywide 2008 revenues revenues revenues revenues 2007 key NY area Rank Company/Parent company Phone/Web site Head of New York office (in millions)1 (in millions)1 (in millions) (in millions) projects2 employees3 2008 key projects/clients4

Tishman Construction Corp. (212) 399-3600 Daniel R. Tishman $3,010.8 $2,297.7 $4,850.0 $3,555.4 70 889 Freedom Tower, Michael F. Price Center 666 Fifth Ave. www.tishman.com Chairman, chief executive for Genetic and Translational Medicine, 1 New York, NY 10103 John T. Livingston Bank of America Tower, Four Seasons President Hotel & Condos Skanska USA (718) 767-2600 Stuart Graham $2,200.0 $1,540.0 n/d $5,600.0 90 978 New Meadowlands Stadium, East 16-16 Whitestone Expressway www.skanska.com Chairman, U.S. business Rutherford, N.J., United Nations Capital 2 Whitestone, NY 11357 units Master Plan renovation and upgrade, Skanska AB Croton Filtration Plant, Catskill/Delaware Ultraviolet Disinfection Facility, Valhalla, N.Y. Bovis Lend Lease LMB Inc. 5 (212) 592-6700 Michael Bellaman $2,085.5 6 $1,706.5 $5,343.5 6 $4,983.8 39 820 Archstone Clinton, The Forte, Vivian & 200 Park Ave. www.bovislendlease.com Chief executive Seymour Milstein Family Heart Center, 3 New York, NY 10166 James Abadie Rego Park Center Lend Lease Corp. Principal in charge, senior vice president Structure Tone Inc. (212) 481-6100 Michael Neary $2,062.1 $2,100.7 $3,230.7 $3,333.0 805 811 St. Patrick’s Cathedral, Metropolitan Life 770 Broadway www.structuretone.com Chief operating officer, New Insurance Co., confidential financial data 4 New York, NY 10003 York center, Mahwah, N.J., NYU Turner Construction Co. (212) 229-6000 Pat A. Di Filippo $2,035.0 $1,900.0 $10,400.0 $9,315.0 71 990 Yankee Stadium, Lincoln Center, The 375 Hudson St. www.turnerconstruction.com Executive vice president Rockefeller University’s Collaborative 5 New York, NY 10014 Charles F. Murphy Research Center, Columbia University’s Turner Corp. Senior vice president Interdisciplinary Science building Plaza Construction Corp. (212) 849-4800 Steven Fisher $984.0 $1,253.0 $984.0 $1,253.0 134 326 11 Times Square, Gateway Center at Bronx 260 Madison Ave. www.plazaconstruction.com Chairman, chief executive Terminal Market, Site 23/24, Battery Park 6 New York, NY 10016 Richard Wood City, 42nd Street & 10th Avenue President Hunter Roberts Construction Group (212) 321-6800 Paul Anderson $787.3 $509.6 $949.7 $606.2 25 264 P.S./I.S. 260, NY Jets practice facility, 2 World Financial Center www.hunterrobertscg.com Executive vice president Florham Park, N.J., 188 Ludlow Tower, 7 New York, NY 10281 Hudson Greene Towers, Jersey City, N.J. Gotham Construction Co. (212) 599-0520 John Giammarella $720.0 $306.0 $720.0 $306.0 10 98 600 W. 42nd St., Fordham University 1010 Sixth Ave. www.gothamconstruction.com President residence hall, Bronx, Hampton Inn, La 8 New York, NY 10018 Guardia Airport, Crosby Street Hotel Gotham Organization Inc. Tully Construction Co. (718) 446-7000 Peter K. Tully $537.0 $467.1 $537.0 $467.1 19 200 West Side Highway reconstruction, 127-50 Northern Blvd. www.tullyconstruction.com Chief executive Houston St. reconstruction, Fresh Kills 9 Flushing, NY 11368 Landfill closure, Charleston Bus Depot HRH Construction (914) 993-5500 Gregory Cuneo $425.0 $402.0 $425.0 $402.0 7 120 605 W. 42nd St., 75 Wall St., "A" 50 Main St. www.hrhconstruction.com Chairman Condominiums, Jersey City, N.J., 270 10 White Plains, NY 10606 Brad C. Singer Greenwich St./101 Warren St. President Gilbane Building Co. (212) 312-1600 Walter T. McKelvey $351.0 $332.2 $4,333.3 $4,166.6 22 170 New Jersey Devils Prudential Center, 2 Rector St. www.gilbaneco.com Senior vice president, regional Newark, N.J., Stony Brook Hospital 11 New York, NY 10006 manager modernization, Columbia University’s Knox Gilbane Inc. Denis M. Boylan Hall renovation, Brooklyn Museum Senior manager expansion and renovation Judlau Contracting Inc. (718) 321-1818 Jay Dier $303.5 $253.1 $303.5 $253.1 15 175 East Side Access, South Ferry, Henry 26-15 Ulmer St. www.judlau.com President, Judlau Cos. Hudson 12 College Point, NY 11354 E.W. Howell Co. (516) 921-7100 Howard L. Rowland $300.0 $170.0 $325.0 $187.7 26 110 Eagle Academy for Young Men, 113 Crossways Park Drive www.ewhowell.com President Metropolitan Museum of Art, painting 13 Woodbury, NY 11797 conservation wing, Brooklyn Academy of Obayashi Corp. Music annex, Rubie Corporate Plaza, Melville, L.I. Henegan Construction Co. (212) 947-6441 Maureen A. Henegan $275.0 $230.0 $275.0 $230.0 27 80 Lehman Brothers, Trust Company of the 250 W. 30th St. www.henegan.com Chairman, chief executive West, UBS, Merrill Lynch 14 New York, NY 10001 Paulinus J. Bryce President, chief operating officer Levine Builders (718) 224-7147 Jeffrey E. Levine $255.0 $87.0 $255.0 $87.0 3 60 The Edge, Zinc Building, 101 E. 10th St., 42-09 235th St. www.levinebuilders.com Chairman 325 Fifth Ave. 15 Douglaston, NY 11363 Leon D. DeMatteis Construction Corp. (516) 285-5500 Richard F. DeMatteis $251.3 $135.6 $251.3 $135.6 2 93 Bronx P.S./I.S. 189, Sunset Park High 820 Elmont Road www.dematteisorg.com President School, Brooklyn, Staten Island I.S./H.S. 16 Elmont, NY 11003 Scott L. DeMatteis 43, Bathgate High School, Bronx Senior executive vice president Continued

THE BIG FIVE The Crain’s list of the top 25 construction companies in the New York area is dominated by five firms.

$11.4BEstimated amount the top five will bring in this year from area projects

62.7%Percent of revenues represented by the top five firms bekka lindström bekka

28 | Crain’s New York Business | October 6, 2008 Project8 9/24/08 1:59 PM Page 1

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ny-bca.com CNYB 10-06-08 A 30 10/2/2008 8:16 PM Page 1

REPORT REAL ESTATE

Projected 2008 2007 Projected 2008 2007 NY area NY area companywide companywide 2008 revenues revenues revenues revenues 2007 key NY area Rank Company/Parent company Phone/Web site Head of New York office (in millions)1 (in millions)1 (in millions) (in millions) projects2 employees3 2008 key projects/clients4

VJB Construction Corp. 7 (212) 268-4364 Vincent J. Bagnoli Jr. $250.0 $325.0 $250.0 $325.0 3 20 The Adagio, The O’Neill Building, 229 W. 555 Eighth Ave. www.vjbconstruction.com President, chief executive 60th St. 17 New York, NY 10018 Barr & Barr Inc. (212) 563-2330 John A. Decina $200.0 $188.0 $400.0 $401.0 10 62 New York Hospital Queens modernization, 460 W. 34th St. www.barrandbarr.com Chief executive North Shore-LIJ Health System, Jamaica 18 New York, NY 10001 Hospital Medical Center nursing home, Hudson Valley Hospital Center expansion, Cortlandt Manor, N.Y. Aurora Contractors Inc. 8 (631) 981-3785 Frank Vero Sr. $190.0 $158.0 $190.0 $158.0 11 75 Ikea, The Arches, Deer Park, N.Y., Harbor 100 Raynor Ave. www.auroracontractors.com President Village, Mount Sinai, N.Y., Stew Leonard’s, 19 Ronkonkoma, NY 11779 Clifton and Paramus, N.J. Terminal Construction Corp. (201) 939-9150 Donald Dinallo $185.0 $170.0 $185.0 $170.0 7 110 BMW of North America’s south campus 215 State Highway 17 South www.terminalconstruction.com President, chief executive expansion, Woodcliff Lake, N.J., Kean 20 Wood-Ridge, NJ 07075 University’s new residence halls, Union, N.J., North Ward Park Elementary School, Newark, N.J., Xanadu parking garage, East Rutherford, N.J. Shawmut Design and Construction 9 (212) 920-8900 Les Hiscoe $173.4 $168.3 $900.0 $850.6 87 89 Apple Inc., Ermenegildo Zegna, Tom Ford, 3 E. 54th St. www.shawmut.com Vice president, retail Ago 21 New York, NY 10022 Perini Corp. (914) 739-1908 John Loftus $167.4 $133.1 $5,374.0 $4,628.3 8 95 BQE rehabilitation, Tappan Zee Bridge, 1022 Lower South St. www.perini.com President, Perini Civil Newtown Creek treatment plant, Passaic 22 Peekskill, NY 10566 Construction River Bridge rehabilitation, Kearney, N.J. Americon Construction Inc. 10 (212) 274-0190 Richard C. Cucci, Eugenio M. $151.5 $140.0 $170.0 $166.0 74 78 Marc Ecko, United States Fund for Unicef, 44 W. 18th St. www.americoninc.com Cannata, Thomas C. Prince TV Guide, Fried Frank Harris Shriver & 23 New York, NY 10011 Principals Jacobson Silverite Construction Co. (516) 681-0562 Angelo Silveri $146.0 $125.0 $146.0 $125.0 5 225 36G Newtown Creek treatment plant, 79G 520 Old Country Road www.silverite.com President, chief executive Wards Island treatment plant, 83G Wards 24 Hicksville, NY 11801 Island treatment plant, Newtown Creek 40G Citadel Construction Corp. (212) 710-8604 David P. Stack $134.7 $113.6 $183.4 $173.0 11 69 AG/Young Woo & Associates, MLB 220 Fifth Ave. www.citadelcc.com President Advanced Media, National Audubon 25 New York, NY 10001 Society, Flack + Kurtz M.A. Angeliades Inc., which was included in the Top 25 list in 2007, declined to respond. New York area includes New York City and Nassau, Suffolk and Westchester counties in New York, and Bergen, Essex, Hudson and Union counties in New Jersey. Crain’s New York Business uses staff research, extensive surveys and the most current references available to produce its lists, but there is no guarantee that these listings are complete. To qualify for this list, a construction company must have a New York area office and must build projects in the area. Companies were contacted for this list based, in most cases, on information from New York Construction.All information was supplied by the companies. Revenue figures are for fiscal years endingDec. 31 unless otherwise noted. 2008 revenue figures are estimates for companies with fiscal years ending in September through December; unless otherwise noted, 2008 revenue figures are actual for companies with fiscal years ending in January throughAugust. n/d Not disclosed. 1-Generated from projects built in the New York area. 2-Generated from projects built in the New York area in the 12 months ended Dec. 31. 3-Full-time and full-time-equivalent only, as of June 30. Excludes union trade workers. 4-Selected projects/clients for work completed or under way in the New York area in 2008. 5-Fiscal year ends June 30. 6-Estimate. 7-Fiscal year ends Oct. 1. 8-Fiscal year ends Oct. 31. 9-Fiscal year ends Nov. 30. 10-Fiscal year ends Sept. 30. Research: Denise Southwood, Maia Blume and Stephanie Kim

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30 | Crain’s New York Business | October 6, 2008 CNYB 10-06-08 A 31 10/2/2008 9:46 AM Page 1

REPORT REAL ESTATE

DEALS sides in the deal. the deal; their colleague Eric Deals Frank Donlon, KGB’s vice pres- Deutsch negotiated for the land- ident of facilities management, says lord, 5 Penn Plaza LLC. that in addition to its location, the “This was a great deal for all in- building’s renovations created a volved,” Mr. LaManna says. “The Right number state-of-the-art space that the com- tenant acquired the growth that it pany considered an advantage. needs under the same roof with —theresa agovino minimal business interruption, while the landlord secured a dynam- on Madison ic and expanding company.” Comforting meals —damian ghigliotty for West Siders THE CO-OWNERS of Little Giant will open a second spot at 156 Ninth Ave. Directory assistance everyone can use a little comfort Russians take aim firm KGB expands food in unsettling times. That’s at TriBeCa what Julie Taras Wallach and Tasha the landlord, Edward Yam. in revamped space Garcia Gibson are counting on. —adrianne pasquarelli international art center,a The co-owners of the popular Russian gallery that features con- gb, a provider of direc- Little Giant on the Lower East Side temporary works, recently signed a tory assistance, is more have signed a 15-year lease for 1,500 Software developer five-year lease for 2,300 square feet than doubling its space square feet at 156 Ninth Ave., between quintuples its space on the ground floor of 49 Walker St., at 655 Madison Ave.,to West 19th and West 20th streets, between Broadway and Church almost 13,400 square where they plan to open a second microstrategy is thinking big Street. The asking rent was $78 a Kfeet.The company, formerly known eatery,Tipsy Parson.Asking rent for when it comes to elbow room. The square foot. The lease includes the as Infonxx, will take over the entire the space, which includes the base- designer of business software re- basement, to be used for video third floor by the end of the year. ment, was $120 a square foot. cently signed a six-year lease to in- screenings, and a five-year option to Asking rent for the 10-year deal was Scheduled to open early next crease its floor space at 5 Penn Plaza renew. $99 a square foot. year, the 75-seat spot—named after almost fivefold, to 12,800 square This will be the company’s first The firm leases about 5,330 a liquor-soaked dessert popular in feet.The company will also move to U.S. exhibition space. The tenant square feet on the 21st floor but will KGB WILL DOUBLE its space at 655 Madison the South—will be triple the size of the 26-story tower’s ninth floor also plans to stage performance relinquish that space after the move. Ave., to almost 13,400 square feet. the other restaurant. from the 14th floor,where it now oc- events there. The aesthetics of the The building, between East 60th “We’ll be able to accommodate cupies 2,600 square feet. Asking new location—a former garment and East 61st streets, is undergoing large parties and buyouts for birth- rent for the newly acquired space shop with high ceilings—is perfect, a nearly $20 million renovation, Senior executives from GVA days,” Ms. Wallach says. was $55 a square foot. says Steve Rappaport, the Sinvin which includes a new facade, eleva- Williams own the building, and Steve Rappaport, a senior direc- Brokers Vincent LaManna and Realty senior director who repre- tors, lobby,bathrooms and mechan- firm brokers Andrew Roos and tor at Sinvin Realty, negotiated the Patrick Dugan of CB Richard Ellis sented landlord Mordechai Lipkis. ical systems. Christel Engel represented both deal on behalf of both the tenant and Inc. represented MicroStrategy in See DEALS on Page 32

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October 6, 2008 | Crain’s New York Business | 31 CNYB 10-06-08 A 32 10/2/2008 9:48 AM Page 1

REPORT REAL ESTATE

Private equity firm because of its convenient Steven Durels, exec- DealsDEALS location, high ceilings utive vice president at finds home on Park and exceptional light, SL Green, says the situ- Top chef Continued from Page 31 according to David ation worked out for the “It’s an opportunity to be on an adveq management, a Zurich- Dusek,a broker at Stud- owner as well, because it gets back emerging TriBeCa block,” says Mr. based private equity firm, has signed ley who negotiated on had been planning to Rappaport, noting that the location a 10-year lease for nearly 5,200 behalf of the firm. prebuild the space to at- is near the gallery’s customer base of square feet at 100 Park Ave., between He added that land- tract a tenant when Ad- to kitchen affluent downtowners. East 40th and East 41st streets. lord SL Green Realty veq decided to lease it. International Art Center plans The firm is currently housed in a Corp. had agreed to SL Green was repre- to open in early 2009 after extensive temporary office in the building and build out the space to sented by its senior vice Colicchio to cook construction. will move into its first permanent Adveq’s specifications, president of leasing, Winick Realty Group broker New York home in November. making the deal a “great Larry Swiger, and Tara at new spot open Annie Shinn negotiated on behalf Asking rent for the space, which economic transaction.” Stacom, a broker at every other Tuesday of the center’s owners, Nina Zaret- comprises about half the 28th floor, Cushman & Wakefield skaya and Madino Stepanchenko. was $100 a square foot. ADVEQ will go from temporary Inc. —adrianne pasquarelli Adveq was drawn to the building to permanent digs at 100 Park. —theresa agovino BY LISA FICKENSCHER

tom colicchio’s clutch of Craft restaurants are getting a part-time sibling.But the noted chef is leaving Craft out of the name on the latest outpost, calling it Tom: Tuesday Dinner. My banker asked if I’d like to The spot will open Oct.14 in the private dining room of Craft, at 47 bank less often E. 19th St. The space, which seats come to the . just 32, will only be open every other Tuesday. Mr. Colicchio himself will cook in the open kitchen. This relationship is unique. “I’m doing this to have fun,” says the owner, who is a judge on Bravo’s Top Chef and oversees about a dozen fine dining and casual eateries in multiple cities, all with “Craft” in their names. “For years, I’ve been trying to figure out a way to get back to cooking,” he says. Mr. Colicchio has cleared his schedule for the next year to be at the restaurant. Tom: Tuesday Din- ner began taking reservations last week. They require a credit card number, and no-shows and diners who cancel less than 48 hours before will be charged the full amount of the prix fixe meal. Those watching daily developments on Wall Street might not have much of an appetite for Tom’s prices, though. The spot will offer only a prix fixe tasting menu, com- prising seven or eight courses, at $150 to $250 a person. Menus can Dr. Beth Miller be viewed at tomtuesdaydinner.com pediatric group practice about a week in advance. Mr. Col- New York, NY icchio says other well-known chefs will occasionally join him. When it’s not Tom,the space will continue to serve as Craft’s private dining room. Mr. Colicchio launched the Craft empire in 2001, when he left the kitchen—though he retained the title of executive chef—at Gramercy Tavern, owned by Danny Meyer’s Union Square Hos- Open a new account by November 21, 2008, to save up to pitality Group. He gave 1 up that role a couple of $500 with FREE installation of Remote Deposit Capture. years ago to focus on his own business, Ready to start depositing checks from your ofﬁ ce instead of at the bank? With which includes four

Remote Deposit Capture from HSBC Business Banking, you’ll receive a scanner Craft restau- getty images that lets you make deposits straight from your computer. Which means no more rants, three letting checks pile up, and no more spending time at, ahem, the bank making Craft- deposits. Don’t worry, we’ll still be close. Speak to a relationship manager today steaks, one Craftbar about how we can tailor our solutions to support your success. Visit a local branch, plus a call 1 866 427-2060 or go to us.hsbc.com/remotedeposit. growing sandwich business called 1 Applies to new-to-bank HSBC business checking account customers who open an ExtraVantage Checking for Business or BusinessSmart for Professionals ’wichcraft. checking account by November 21, 2008, and is limited to single feed service only. Remote Deposit Capture service must be implemented at the customer site within 90 days of the checking account opening date to be eligible. Limit one installation fee waiver per customer. COMMENTS? In the United States, banking products are offered by HSBC Bank USA, N.A. or HSBC National Bank USA. Both banks are Member FDIC. LFickenscher TOM COLICCHIO has ©2008 HSBC Bank USA, N.A. @crainsnewyork.com cleared his schedule.

32 | Crain’s New York Business | October 6, 2008 CNYB 10-06-08 A 33 10/2/2008 8:32 PM Page 1

NEIGHBORHOOD JOURNAL

sons to Leave Brooklyn”.That move Queens area fights swarm of plans provoked such outrage from the blog’s readers that Mr.Lee was forced to change his headline to “10 Rea- developer is trying to speed things lifetime supply of compact fluores- sons to Live on Staten Island.” NYPD, MTA, others up with an innovative green cam- cent light bulbs, but also 1,000 “I’ve never gotten com- all have designs on paign—and a peripatetic ad- saplings planted in their name plaints about ads before,” says wrapped recreational vehicle. in the Gallatin National Jonathan Butler, the blog’s Springfield Gardens; To draw attention to his new de- Forest in Montana. founder. “But when Mr. Lee velopment in the Pleasant Plains Now, with only nine wanted to renew the ad, I sug- battle for wooded lot neighborhood of Staten Island’s units left to sell, Mr. Lee gested he tweak it.” southern end, Randy Lee, president says he is “doubling down” Mr. Lee estimates he has esidents of Springfield of Leewood Real Estate Group, is on the green initiative. He is spent $15,000 per unit on marketing Gardens say they feel offering buyers a chance to help save giving buyers a 1-in-3 chance to win RV he has dispatched all the development. But, he says, the like they are under siege. the environment.In March,he start- one of three Honda Civic Hybrids. over the island.He has also taken out investment was worth it. Through Last month, Communi- ed giving buyers at his 22-home To get the word out, Mr. Lee has an ad on the popular Brooklyn blog, March, he had sold only three units. ty Board 13, which rep- Opal Ridge development not only a resorted to an un-green vehicle: the Brownstoner.com, listing “10 Rea- —matthew sollars Rresents the Southeast Queens community, successfully voted down a developer’s plans for a short-stay, “hot sheets”motel on North Conduit Avenue as it geared up to block a proposal to locate an auto impound lot in the neighborhood. “We’re just attracting all sorts of flies out here,” says board Chairman Richard Hellenbrecht,referring to a swarm of proposed projects that has hit the area. Over the past two years, Spring- field Gardens and nearby towns have been the target of a variety of development proposals from the city.The proposed Police Department impound lot would gobble up about 13 acres of woods that separate Spring- field Gardens from John F.Kennedy International Airport.In an adjacent lot,the city Economic Development Corp. plans to bring in an airport courier service and a school bus company with several hundred buses. The strip of land serves as a buffer between the community and the airport noise. It absorbs rain runoff and prevents the sort of flooding that other Queens neighborhoods have suffered recently. “There’s a lot of flora and fauna, some ponds, and they want to pave over it with a nonpermeable, non- porous surface,” says Mr. Hellen- brecht. “That won’t help the community at all.” And then there are the plans by the Metropolitan Transportation Authority to create a lot across the street for decommissioned city buses waiting for auction. The board’s power to block such encroachments is limited at best. It voted unanimously against the auto pound, but the board’s role is solely an advisory one. City Councilman James Sanders is also skeptical about the project. The problem,he explains,is that the projects don’t seem to provide jobs or services to the area. “I appreciate that there is a need for an impound lot,and that it has to go somewhere, but what does my community get out of it?” asks Mr. Sanders.“My initial inclination is to be against it, but I’m trying to keep an open mind.” The impound lot proposal is likely to go before the City Council next month. —hilary potkewitz Green gambit helps sell S.I. homes 0HONEs&AX with home sales slower than a tortoise in winter, one Staten Island

October 6, 2008 | Crain’s New York Business | 33 CNYB 10-06-08 A 34 10/2/2008 8:46 PM Page 1

THE WEEKS AHEAD

THIS WEEK’S EVENTS OCTOBER 7 breakfast forum on Web video seminar on going green. 5 p.m. to 7:30 lunch networking reception. 11:45 a.m. OCTOBER 6 New York Public Library’s Science, leadership. 8:30 a.m. to 12 p.m., CUNY p.m., NYC District Council of Carpen- to 1 p.m., 545 Eighth Ave., 18th floor, Caribbean Business Network holds Industry and Business Library holds Graduate Center, 365 Fifth Ave. Fee: ters, 395 Hudson St. Fee: $40. Preregis- suite 18NE. Fee: $10. (212) 465-8080. networking reception on growing your information session on interpreting $125. (212) 765-8043. tration required. (212) 404-6990, ext. 19. OCTOBER 8 business. 7 p.m. to 9 p.m., Community financial statements. 1:15 p.m. to OCTOBER 7 OCTOBER 7 Brazilian-American Chamber of Bridge Home, 120-50 Springfield Blvd., 2:30 p.m., 188 Madison Ave, lower Lower Manhattan Business Solutions Association of Real Estate Women Commerce Inc. holds breakfast on Queens. Free. (718) 207-0635 or level. Free. (212) 592-7000. Center holds workshop on small holds lunch program on the fall of Bear investing in Brazilian agriculture. 8 a.m. [email protected]. OCTOBER 7 business bookkeeping. 6 p.m. to 8 p.m., Stearns. 11:30 a.m. to 2 p.m., Club 101. to 10 a.m., Patterson Belknap Webb & OCTOBER 6 New York Women in Communications 110 William St., fourth floor, conference 101 Park Ave. Fee: Free for members, Tyler, 1133 Sixth Ave., 24th floor. Fee: Municipal Art Society holds program on holds forum on how to disconnect in a room. Free. (212) 618-8914 or $130 nonmembers. (212) 599-6181. $50 members, $100 nonmembers. preserving neighborhood businesses. 6:30 hyperconnected world. 6 p.m. to 8 p.m., [email protected]. OCTOBER 7 (212) 751-4691. p.m. to 8 p.m., West Side Institutional Doubletree Guest Suites Times Square, OCTOBER 7 Fresh Concentrate holds seminar on OCTOBER 8 Synagogue, 120 W. 76th St. Free. Pre- 1568 Broadway. Fee: $16 student Workshop in Business Opportunities marketing your business in a down Greater New York Chapter of the registration required. (212) 935-2075. members, $26 members, $41 holds a free legal clinic. 6 p.m. to 8 p.m., economy. 6 p.m. to 8:30 p.m., Con Institute of Real Estate Management nonmembers. Preregistration required. 55 Exchange Place, fifth floor. Free. Edison, 4 Irving Place, multipurpose holds monthly luncheon. 11:30 a.m. to More meetings online at (212) 297-2129 or Preregistration required. (212) 684-0854, room. Fee: $40. Preregistration required. 1:30 p.m., New York Helmsley Hotel, www.crainsnewyork.com [email protected]. ext. 0538, or [email protected]. (212) 754-9251 or [email protected]. 212 E. 42nd St., third floor. Fee: $65 Click on “Events” OCTOBER 7 OCTOBER 7 OCTOBER 8 members, $130 nonmembers. Business Development Institute holds NY Industrial Retention Network holds Gold Place Network holds brown bag (212) 944-9445 or [email protected]. OCTOBER 8 Five O’Clock Club holds seminar on search firms. 6:30 p.m. to 8:30 p.m., 11 Penn Plaza, fifth floor. Fee: $50. (914) 788-5482 or [email protected]. OCTOBER 8 Competitive Edge holds seminar on maximizing opportunities for minority- or woman-owned businesses. 8 a.m. to 5:30 p.m., CUNY Graduate Center, 365 Fifth Ave. Free. (212) 432-4356. OCTOBER 8 Power Networking Group holds breakfast networking reception. 7 a.m. to 9 a.m., Jackson Hole, 35-01 Bell Blvd., Queens. Fee: $10. (718) 423-0427 or [email protected]. OCTOBER 10 New York Society of Security Analysts’ Socially Responsible Investing Committee holds program on values- based investing. 8:30 a.m. to 10 a.m., 1177 Sixth Ave. Free. Preregistration required by Oct 7. (646) 747-5446. OCTOBER 13-19 OCTOBER 14 Score NYC holds seminar on secrets of marketing for small businesses. 10:15 a.m. to 1 p.m., New York Public Library’s Science, Industry & Business Library, 188 Madison Ave., lower level. Fee: $45 in advance, $55 at the door. (212) 264-4507 or [email protected]. OCTOBER 14 Wharton Club of New York, Landslide Technologies and Sales 2.0 hold seminar on strategies for winning big company clients. 6 p.m. to 8 p.m., Penn Club, 30 W. 44th St. Fee: $20 members, $35 nonmembers. (201) 782-9663. OCTOBER 14 New York Building Congress holds forum on New York City’s construction outlook through 2010. 8 a.m. to 9:45 a.m., Hilton New York, 1335 Sixth Ave., Mercury Ballroom. Fee: $75 members, $140 nonmembers. (212) 481-9230. OCTOBER 14 Manhattan Chamber of Commerce and Capital One Bank hold networking reception. 6 p.m. to 8 p.m., 1536 Third Ave. Fee: Free for members, $15 FIFTH nonmembers. Preregistration required. (212) 473-7805 or [email protected]. EETS CUTTIN OCTOBER 14 CTER M G-EDG Networking for Professionals holds ARA E networking reception. 6 p.m. to 8 p.m., CH Barna, 365 Park Ave. South. Fee: $10 RE members, $15 nonmembers in advance; HE 180,000 RSF $20 at door for all. (212) 227-6556 or W [email protected]. HEADQUARTERS SUBLEASE OPPORTUNITY OCTOBER 15 Crystal Window & Door Systems holds 150 Fifth is the perfect collaboration of character, style and a state-of-the-art work environment. This headquarters opportunity features Vietnam business forum. 8:30 a.m. to high ceilings, flexible floor plates ranging from 6,760 to 21,818 SF, an above-standard installation, a mix of perimeter offices and open areas, 11 a.m., Tudor Hotel, 304 E. 42nd St. numerous conference rooms and a landscaped rooftop terrace with adjoining dining area and kitchen. Located at the heart of the Flatiron Free. Preregistration required. District, this unique property is surrounded by hip retail, inspired cuisine and numerous corporate neighbors. (718) 961-7300, ext. 3231, or

All the characteristics for success. TO LIST YOUR EVENT FOR LEASING INFORMATION PLEASE CALL: Listings can be submitted only through the Crain’s MATTHEW R. ASTRACHAN - Executive Vice President - 212-841-7904 - [email protected] Web site. To submit a calendar listing, go to ROBERT C. GALLUCCI - Senior Director - 212-841-7872 - [email protected] www.crainsnewyork.com and click on “Events.” SCOTT A. SILVERSTEIN - Associate - 212-713-6797 - [email protected] Sponsors have a choice of several free or paid listing options. All business events will be posted online within two business days.

34 | Crain’s New York Business | October 6, 2008 CNYB 10-06-08 A 35 10/2/2008 8:47 PM Page 1

[email protected]. Marriott Marquis New York, 1535 6:30 p.m. to 8 p.m., Broadway and West holds workshop on filing requirements. W. 23rd St. Fee: $65. Preregistration OCTOBER 15 Broadway, fifth floor. Fee: $210 116th Street. Free. Preregistration 10 a.m. to 1:30 p.m., Lehman College, required. (917) 697-2063 or Nexco holds seminar on turning conference/lunch, $135 lunch only for required. (212) 854-9666 or 250 Bedford Park Blvd. West, music [email protected]. employment odds in your favor. 9:30 members; $280 conference/lunch, $150 [email protected]. building, room 306, Bronx. Fee: $100. OCTOBER 20 a.m. to 12 p.m., Williams Club, 24 E. lunch only for nonmembers. OCTOBER 16 (718) 960-8697 or BBMG, SustainAbility and Ode 39th St. Fee: $45 members, $80 (212) 239-3662 or [email protected]. Skyscraper Museum and Regional Plan [email protected]. magazine hold workshop on building nonmembers. (877) 291-4901 or OCTOBER 15 Association hold conference on learning OCTOBER 18 brand equity. 9 a.m. to 12 p.m., Puck [email protected]. Associated Builders and Owners of from Hong Kong. 3 p.m. to 5:30 p.m., 1 Editorial Freelancers Association holds Building, 295 Lafayette St., #705. Fee: OCTOBER 15 Greater New York holds luncheon with Chase Manhattan Plaza, 60th floor. Free. substantive editing workshop. 9:30 a.m. $200. (212) 472-4902 or Better Business Bureau Foundation Kings County DA Charles J. Hynes. Preregistration required. (212) 945-6324 to 5 p.m., EFA Office, 71 W. 23rd St., [email protected]. holds forum on home improvement. 12 p.m. to 1:30 p.m., National Arts or [email protected]. fourth floor. Fee: $160 members, $185 OCTOBER 21 5 p.m. to 7:30 p.m., Con Edison, Club, 15 Gramercy Park South. OCTOBER 16 nonmembers. Preregistration required. Crain’s New York Business holds 4 Irving Place. Fee: $35 members, Fee: $65 members, $85 nonmembers. Cohen Brothers Realty Corp. holds (212) 929-5400 or [email protected]. Breakfast Forum with city Comptroller $45 nonmembers. Preregistration (212) 385-4949 or networking reception for brokers, 6 p.m. William Thompson Jr. 8 a.m. to 9:30 required. (212) 358-2842 or [email protected]. to 8 p.m., 622 Third Ave. Free. OCTOBER 20-26 a.m., Hilton New York, 1335 Sixth Ave. [email protected]. OCTOBER 15 (212) 418-2098 or OCTOBER 20 Fee: $70 individual ticket, $650 table of OCTOBER 15 Columbia University School of [email protected]. NYHumanResources.com holds 10. Preregistration required. New York Society of Professional Continuing Education holds lecture on OCTOBER 16 budgeting crash course for www.crainsnewyork.com/events. Engineers, New York chapter, holds American Express corporate archives. Small Business Development Center entrepreneurs. 6:30 p.m. to 8 p.m., 16 —maia blume dinner on technical issues with bridges in New York City. 5:15 p.m. to 8:30 p.m., Connolly’s Restaurant, 121 W. 45th St., third floor. Fee: $50 members, $65 nonmembers. Preregistration required. (212) 879-7300, ext. 10, or [email protected]. OCTOBER 15 New York Chapter of the Society for Marketing Professional Services holds Take your cash management breakfast on marketing energy efficiency. 8 a.m. to 10 a.m., Penn Club of New York, 30 W. 44th St. Fee: $70 to the next level. members, $100 nonmembers. Preregistration required. (212) 367-2860 or [email protected]. OCTOBER 15 Building Owners and Managers Association of Greater New York holds annual conference. 8 a.m. to 1:45 p.m., FREE TRIALS OF CRAIN’S ONLINE NEWSLETTERS CRAIN’S OFFERS READERS FREE two-week trial subscriptions to its online newsletters, Crain’s Health Citibank cash management tools can make a real difference for your business, starting with a great rate on Pulse and The a business money market account. But at Citibank, you’ll get more than a great rate, you’ll get the solutions Crain’s Insider. Pulse deals with and tools that only Citibank can offer. We’ll take the time to understand your challenges and champion your the business of business needs. Let our ﬂ exible solutions and dedicated service help take your business to the next level. health care. 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October 6, 2008 | Crain’s New York Business | 35 nb40p36-37cls.qxp 10/2/08 1:27 PM Page 36

REAL ESTATE PUBLIC & LEGAL NOTICES

COMMERCIAL Notice of Qualification of AMC Wappinger, Notice of Qualification of SCOA Notice of Qualification of SOUND POINT LLC. Authority filed with NY Dept. of State Residential, LLC. Authority filed with NY OPPORTUNITIES GP, LLC. Authority filed on 9/15/08. Office location: NY County. Dept. of State on 8/7/08. Office location: with Secy. of State of NY (SSNY) on Brooklyn • Coney Island Principal business addr.: 3 W. 46th St., NY County. Principal business addr.: 600 08/20/08. Office location: New York 3.2 Acre site Zoned M1-2 on NY, NY 10036. LLC formed in DE on 3rd Ave., NY, NY 10016. LLC formed in DE County. LLC formed in Delaware (DE) on Neptune Ave, in the heart of 9/11/08. NY Sec. of State designated as on 9/22/98. NY Sec. of State designated as 07/31/08. Principal office of LLC: 623 Coney Island. Can build up to agent of LLC upon whom process against agent of LLC upon whom process against Fifth Avenue, New York, NY 10022. SSNY 279,000 sq. ft. of it may be served and shall mail process it may be served and shall mail process to: designated as agent of LLC upon whom Retail/Hotel/Office, etc. - or can to: c/o CT Corporation System, 111 8th c/o CT Corporation System, 111 8th Ave., process against it may be served. SSNY lease as an industrial site. Ave., NY, NY 10011, regd. agt. upon NY, NY 10011, regd. agt. upon whom shall mail process to Stephen J. Ketchum, Tremendous location and whom process may be served. DE addr. of process may be served. DE addr. of LLC: 623 Fifth Avenue, New York, NY 10022. exposure. Owners invite LLC: 1209 Orange St., Wilmington, DE 1209 Orange St., Wilmington, DE 19801. Arts. of Org. filed with Delaware Secretary proposals - brokers protected 19801. Arts. of Org. filed with DE Sec. of Arts. of Org. filed with DE Sec. of State, of State, Corporations Division, First and CRAINSNEWYORK.COM State, 401 Federal St., Dover, DE 19901. Townsend Bldg., Dover, DE 19901. Federal Street, Wilmington, DE 19801. Steel Equities - 516-576-3165 Purpose: all lawful purposes. Purpose: any lawful activity. Purpose: Any lawful activity.

Notice of formation of Healthy Inner Notice of Qualification of Halcyon Access Notice of Formation of FREE OUR OFFICE SPACE Beauty, LLC a limited liability company. III LLC. Authority filed with NY Dept. of CHILDREN THE FILM LLC. Arts. of Org. Articles of Organization filed with the State on 9/2/08. Office location: NY filed with Secy. of State of NY (SSNY) Secretary of State of New York SSNY on County. Principal business addr.: 225 on 8/7/08. Office location: NY County. SPACE AVAILABLE – CHELSEA PIERS July 15, 2008. Office located in New York Liberty St., 7th Fl., NY, NY 10281. LLC SSNY designated as agent of LLC upon County. SSNY has been designated for formed in DE on 5/10/05. NY Sec. of State whom process against it may be service of process. SSNY shall mail copy designated as agent of LLC upon whom served. SSNY shall mail process to: of any process served against the LLC to process against it may be served and shall 215 W. 101st St., #3C, NY, NY 10025. Healthy Inner Beauty, LLC 1325 fifth mail process to: CT Corporation System, Purpose: any lawful activity. Avenue, suite 6H, New York, NY 10029. 111 8th Ave., NY, NY 10011, regd. agt. Purpose: any lawful purpose. upon whom process may be served. DE NOTICE OF FORMATION of Coaching For addr. of LLC: c/o The Corporation Trust Success, LLC. Arts. of Org. filed with the Notice of Qualification of J.C. Flowers III Co., 1209 Orange St., Wilmington, DE Secy. of State of N.Y. (SSNY) on 9/16/08. L.P. Authority filed with NY Dept. of State 19801. Arts. of Org. filed with DE Sec. of Office location: New York County. SSNY 8,000 SF on 9/10/08. Office location: NY County. State, PO Box 898, Dover, DE 19903. designated as agent of LLC upon whom Principal business addr.: 717 5th Ave., NY, Purpose: any lawful activity. process against it may be served. SSNY Incredible, loft-style space overlooking Hudson River. Private Entrance. NY 10022. LP formed in Cayman Islands shall mail process to principal business New Construction • 13’ Ceilings • On-site Parking, Health Club, Golf and more (CI) on 1/24/08. NY Sec. of State desig- Notice of Formation of GREENPORT location: 345 East 73rd St. # 8J, NY, NY IMMEDIATE OCCUPANCY • Call 212.336.6831 nated as agent of LP upon whom process DEVELOPER, LLC. Arts. of Org. filed 10021. Purpose Any lawful activity. against it may be served and shall mail with Secy. of State of NY (SSNY) on 1087791 w.o process to: c/o CT Corporation System, 09/16/08. Office location: New York 111 8th Ave., NY, NY 10011, regd. agt. County. Principal office of LLC: 60 Notice of Formation of Cooper Square upon whom process may be served. CI Columbus Circle, NY, NY 10023. SSNY Contractors, LLC. Arts. of Org. filed with LUXURY PROPERTIES addr. of LP: c/o Walker SPV Ltd., Walker designated as agent of LLC upon whom Secy. of State of NY (SSNY) on 8/29/08. House, 87 Mary St., George Town, Grand process against it may be served. SSNY Office location: NY County. SSNY desig- Cayman, KY1-9002, CI. Name/addr. of shall mail process to c/o Corporation nated as agent of LLC upon whom genl. ptr. available from NY Sec. of State. Service Co., 80 State St., Albany, NY LUXURY RENTALS MANHATTAN process against it may be served. SSNY Cert. of LP filed with Asst. Registrar of 12207. Purpose: Any lawful activity. shall mail process to: c/o Eric H. Seltzer, Exempted LPs, Citrus Grove Bldg., Goring Gilbride, Tues, Last & Spellane LLC, 708 311 WEST 75TH STREET Ave., George Town, Grand Cayman, CI. Notice of Qualification of AG Asia Special East Hampton, NY - House Situations Employee Investment Program, Third Ave., 26th Fl., NY, NY 10017. Rental - 4 Bed Rooms, Living SINGLE FAMILY 20’ WIDE 5 STORY Purpose: any lawful activity. Purpose: any lawful activity. TOWNHOUSE L.P. Authority filed with Secy. of State of Room, Dining Room, Family NY (SSNY) on 08/22/08. Office location: ELEVATOR Notice of Formation of MPFC LLC. Arts. of Notice of Formation of a Professional Room, 1.5 Baths and Front Porch New York County. LP formed in Delaware ORIGINAL DETAILS Org. filed with Secy. of State of NY (SSNY) Service Limited Liability Company (PLLC) basement crawl space. Unfurnished. (DE) on 05/16/08. SSNY designated as 311west75th.com $7.9M on 09/17/08. Office location: New York Name: KB DENTAL PARTNERS, LLC. Articles Rent $3,200.00/month ready to agent of LP upon whom process against it FS&H Properties,Ltd.Brkrs County. Principal office of LLC: c/o Milstein of Organization filed by the Department of move in. may be served. SSNY shall mail process to (212) 586-9566 x 103/104 Brothers, 6 East 43rd St., NY, NY 10017. State of New York on: 8/19/2008. Office Fisher Island, FL - Furnished c/o Corporation Service Company, 80 State SSNY designated as agent of LLC upon location: County of New York. Beautiful Studio Condo +/-450 sq. Street, Albany, NY 12207, registered agent whom process against it may be served. Purpose: Dentistry ft., full kitchen, 1 bath. MARINA upon whom and at which process may be SSNY shall mail process to c/o Corporation Secretary of State of New York (SSNY) VIEW 2nd Fl steps to pool right served. Arts. of Org. filed with Secretary Service Co., 80 State St., Albany, NY designated as agent of PLLC upon whom at the head of Fisher Island use of State of Delaware, Department of PUBLIC & LEGAL 12207-2543. Purpose: Any lawful activity. process against it may be served. SSNY of golf cart & much more. Rent State, Division of Corporations, John shall mail copy of process to: c/o $3,000.00/month ready to move in. Notice of Formation of Twentywest Townsend Building, Dover, DE 19901. NOTICES Englewood Management, LLC, 19 Fisher Island, FL - Furnished Properties, LLC, Art. of Org. filed Sec’y of Purpose: Any lawful activity. Beekman Street, New York, NY 10038 Beautiful 1 Bedroom SEASIDE Notice of Qualification of 80 WEP-107 State (SSNY) 7/15/08. Office location: NY VILLA +/-790 sq. ft. 1st floor steps LLC. Authority filed with Secy. of State of County. SSNY designated as agent of LLC Notice of Qualification of FASHIONOLOGY THE FUTURES GROUP IT LLC, a domes- to beach, back patio & yard, full NY (SSNY) on 08/19/08. Office location: upon whom process against it may be GROUP, LLC. Authority filed with Secy. of tic Limited Liability Company (LLC) filed kitchen, 1 bath, Dining Room, New York County. LLC formed in Delaware served. SSNY shall mail copy of process State of NY (SSNY) on 09/05/08. Office with the Sec of State of NY on 2-5-08. NY Living Room, 1 park. space use of (DE) on 07/30/08. SSNY designated as to Reinhardt LLP, 44 Wall St., 10th Fl., NY, location: New York County. LLC formed in Office location: New York County. SSNY golf cart and much more. Rent at agent of LLC upon whom process against NY 10005. Purpose: any lawful activities. Delaware (DE) on 02/27/08. Principal is designated as agent upon whom $6,000.00/month ready to move in. it may be served. SSNY shall mail process office of LLC: c/o CJ Apparel Group, LLC, process against the LLC may be served. Contact Liz at 212-349-3505 to Meister Seelig & Fein, LLP, c/o Matthew NOTICE OF FORMATION OF REGISTERED 1411 Broadway, NY, NY 10018. LLC SSNY shall mail a copy of any process or [email protected] E. Kasindorf, Esq., 2 Grand Central Tower, LIMITED LIABILITY PARTNERSHIP. agrees to use fictitious name of FASH- against the LLC served upon him/her to 140 E. 45th St., 19th Fl., NY, NY 10017. NAME: DICKLER AND ROTH, LLP. IONOLOGY GROUP (FG), LLC while con- The LLC, 11679 Sunrise View Ln., Arts. of Org. filed with Secy. of State of Certificate of Registration was filed with ducting business in NY. SSNY designated Wellington, FL 33647. General purposes. the State of DE, Div. of Corporations, 401 the Secretary of State of New York as agent of LLC upon whom process Federal St., Ste. 4, Dover, DE 19901. (SSNY) on 08/01/08. Office location: New against it may be served. SSNY shall mail Notice of Formation of SOUTH BEDFORD York County. SSNY has been designated process to c/o Corporation Service Co., TELECOMUNICATIONS Purpose: Any lawful activity. ORAL & MAXILLOFACIAL SURGERY as agent of the LLP upon whom process 80 State St., Albany, NY 12207. Arts. of PLLC, a Professional LLC. Arts. of Org. Notice of Qualification of Cyrus Access against it may be served. SSNY shall mail Org. filed with DE Secy. of State, Div. of filed with the SSNY on 05/16/08. Office LLC. Authority filed with NY Dept. of State a copy of process to the LLP, 19 Fulton Corporations, PO Box 898, Dover, DE location: NY County, the county was on 9/2/08. Office location: NY County. Street, Suite 402, New York, New York 19903. Purpose: Any lawful activity. amended to Westchester on 08/25/08. Principal business addr.: 225 Liberty St., 10038, which is also the location of the SSNY has been designated as agent upon 7th Fl., NY, NY 10281. LLC formed in DE partnership. Purpose: For the practice of Notice of Formation of RF West 129 LLC. whom process against it may be served. on 9/12/01. NY Sec. of State designated as the profession of Law. Arts. of Org. filed with Secy. of State of SSNY shall mail a copy of process to: agent of LLC upon whom process against N.Y. (SSNY) on 8/15/07. Office location: Jason Baker, 81 Pheasant Run, Millwood, it may be served and shall mail process to: Notice of Formation of 550 Watkins Street NY County. SSNY designated as agent of NY 10546. Purpose: To Practice The CT Corporation System, 111 8th Ave., NY, Managers LLC. Arts. of Org. filed with NY LLC upon whom process against it may Profession Of Dentistry. NY 10011, regd. agt. upon whom process Dept. of State on 9/8/08. Office location: be served. SSNY shall mail process to: may be served. DE addr. of LLC: c/o The NY County. Sec. of State designated as Royal Field LLC, 164 W. 128th St., #1C, NY, Corporation Trust Co., 1209 Orange St., agent of LLC upon whom process against NY 10027. Purpose: any lawful activity. Wilmington, DE 19801. Arts. of Org. filed it may be served and shall mail process to with DE Sec. of State, PO Box 898, Dover, the principal business addr.: c/o CPC Notice of Qualification of Exquisite DE 19903. Purpose: any lawful activity. Resources, Inc., 28 E. 28th St., 9th Fl., NY, Planning, LLC. Authority filed with NY To place your NY 10016. Purpose: any lawful activity. Dept. of State on 11/7/07. Office location: Notice of Formation of ZIBBY’S PREP NY County. LLC formed in DE on LLC. Arts of Org. filed with Secy. of NOTICE OF FORMATION of LORENCMD, 10/31/07. NY Sec. of State designated as classified ad call State of N.Y. (SSNY) on 8/21/08. Office LLC. Arts. Of Org. filed with Secy. Of State agent of LLC upon whom process against location: New York County. SSNY des- of N.Y. (SSNY) on 5/29/08. Office location: it may be served and shall mail process to ignated as agent of LLC upon whom New York County. SSNY designated as the principal business address: 2306 John Gallagher @ process against it may be served. SSNY agent of LLC upon whom process against Dabis Ct., Edgewater, NJ 07020. DE addr. shall mail process to principal business it may be served. SSNY shall mail process of LLC: 615 S. Dupont Hwy., Dover, DE location: 137 E 36 St., Apt. 23C, NY, NY to: National Registered Agents, Inc. 19901. Arts. of Org. filed with DE Sec. of 212-210-0189 10016. Purpose: Any lawful activity. Principal business location: 983 Park Ave, State, 401 Federal St., Dover, DE 19901. 1078884 w.o NY, NY 10028. Purpose: any lawful activity. Purpose: any lawful activity.

36 | Crain’s New York Business | October 6, 2008 nb40p36-37cls.qxp 10/3/08 3:28 PM Page 37

PUBLIC & LEGAL NOTICES

Notice of Formation of UPPER 90, LLC. Notice of Qualification of 73-77 West Notice of Formation of Bayrock/Jackson Notice of Qualification of Wriston Capital Notice of Qualification of Landmark Value Arts. of Org. filed with Secy. of State of 132nd Street Holdings, LLC. Authority Jamaica LLC. Arts. of Org. filed with Secy. Management, LP. Authority filed with Access LLC. Authority filed with NY Dept. NY (SSNY) on 09/04/08. Office location: filed with NY Dept. of State on 8/12/08. of State of N.Y. (SSNY) on 8/15/08. Office Secy. of State of NY (SSNY) on 9/3/2008. of State on 9/2/08. Office location: NY New York County. Principal office of Office location: NY County. Principal busi- location: NY County. SSNY designated as Office location: New York County. LP County. Principal business addr.: 225 LLC: 310 W. 47, Apt. 6K, NY, NY 10036. ness addr.: 110 E. 59th St., 20th Fl., NY, agent of LLC upon whom process against formed in Delaware (DE) on 8/28/2008. Liberty St., 7th Fl., NY, NY 10281. LLC SSNY designated as agent of LLC upon NY 10022. LLC formed in DE on 8/7/08. it may be served. SSNY shall mail process Principal office of LP: 230 Park Ave., 15th formed in DE on 9/16/05. NY Sec. of State whom process against it may be served. NY Sec. of State designated as agent of to: c/o Bayrock Real Estate Partners LLC, Fl. , NY, NY 10169. SSNY designated as designated as agent of LLC upon whom SSNY shall mail process to Wilson Egidio LLC upon whom process against it may 725 Fifth Ave., 24th Fl., NY, NY 10022. agent of LP upon whom process against it process against it may be served and at the address of the principal office. be served and shall mail process to: CT Purpose: any lawful activity. may be served. SSNY shall mail process shall mail process to: CT Corporation Purpose: Any lawful activity. Corporation System, 111 8th Ave., NY, NY to the LP, Attn: Stephen Brown at the System, 111 8th Ave., NY, NY 10011, 10011, regd. agt. upon whom process NOTICE OF FORMATION OF LIMITED LIA- principal office of the LP. Arts. of Org. regd. agt. upon whom process may be Notice of Formation of PENYEACH 43 may be served. DE addr. of LLC: 1209 BILITY COMPANY. NAME: LAND ZONE filed with Secy. of State of DE, 401 served. DE addr. of LLC: c/o The LLC. Arts. of Org. filed with Secy. of State Orange St., Wilmington, DE 19801. Arts. LLC. Articles of Organization were filed Federal St., Ste. 4, Dover, DE 19901. Corporation Trust Co., 1209 Orange St., of NY (SSNY) on 8/28/2008. Office loca- of Org. filed with DE Sec. of State, 401 with the Secretary of State of New York Purpose: Any lawful activity. Wilmington, DE 19801. Arts. of Org. filed tion: New York County. SSNY designated Federal St., Dover, DE 19901. Purpose: (SSNY) on 08/20/08. Office location: New with DE Sec. of State, PO Box 898, Dover, as agent of LLC upon whom process any lawful activity. York County. SSNY has been designated Notice of Formation of a Limited Liability DE 19903. Purpose: any lawful activity. against it may be served. SSNY shall mail as agent of the LLC upon whom process Company (LLC): Name: HARLEM TORCH process to the LLC, c/o Elisabeth M. Notice of Qualification of York Access LLC. against it may be served. SSNY shall mail MAGAZINE, LLC Articles of Organization Notice of Qualification of D. E. Shaw Real Kovac, Esq., 90 Park Ave., Ste. 1710, NY, Authority filed with NY Dept. of State on a copy of process to the LLC, c/o Berliner filed with the Secretary of State of New Estate Holdings 4-A, L.L.C. Authority filed NY 10016. Purpose: Any lawful activity. 9/2/08. Office location: NY County. & Pilson, Esqs., 80 Cutter Mill Road, Suite York (SSNY) on 5/01/08. Office location: with NY Dept. of State on 6/23/08. Office Principal business addr.: 225 Liberty St., 411, Great Neck, New York 11021. New York County. SSNY has been desig- location: NY County. LLC formed in DE on NOTICE OF FORMATION OF LIMITED LIA- 7th Fl., NY, NY 10281. LLC formed in DE Purpose: For any lawful purpose. nated as agent of the LLC upon whom 3/27/07. NY Sec. of State designated as BILITY COMPANY. NAME: SERGIO MAN- on 9/12/01. NY Sec. of State designated as process againt it may be served. SSNY agent of LLC upon whom process against it NINO LLC. Articles of Organization were agent of LLC upon whom process against Notice of Qualification of Renaissance shall mail a copy of process to: C/O may be served and shall mail process to: D. filed with the Secretary of State of New it may be served and shall mail process to: Futures Fund Access LLC. Authority filed HARLEM TORCH MAGAZINE, LLC, 1980 E. Shaw & Co., L.P., 120 W. 45th St., 39th York (SSNY) on 01/09/08. Office location: CT Corporation System, 111 8th Ave., NY, with NY Dept. of State on 9/3/08. Office Madison Avenue, New York, NY 10035. Fl., Tower 45, NY, NY 10036, Attn: John New York County. SSNY has been desig- NY 10011, regd. agt. upon whom process location: NY County. Principal business Purpose: Any Lawful Purpose. Liftin, General Counsel, registered agent nated as agent of the LLC upon whom may be served. DE addr. of LLC: c/o The upon whom process may be served. DE addr.: 225 Liberty St., 7th Fl., NY, NY Notice of Qualification of Maximus process against it may be served. SSNY Corporation Trust Co., 1209 Orange St., 10281. LLC formed in DE on 11/13/07. addr. of LLC: 1209 Orange St., Wilmington, shall mail a copy of process to the LLC, Wilmington, DE 19801. Arts. of Org. filed Multimedia International LLC. Authority DE 19801. Arts. of Org. filed with DE Sec. NY Sec. of State designated as agent of filed with NY Dept. of State on 8/19/08. c/o Filippo Cinotti, 50 Broad Street, Suite with DE Sec. of State, PO Box 898, Dover, LLC upon whom process against it may of State, 401 Federal St., Dover, DE 19901. 1911, New York, New York 10004. DE 19903. Purpose: any lawful activity. Office location: NY County. LLC formed in Purpose: any lawful activity. be served and shall mail process to: CT NV on 4/23/08. NY Sec. of State designat- Purpose: For any lawful purpose. Corporation System, 111 8th Ave., NY, NY Notice of Formation of NGM NEW YORK ed as agent of LLC upon whom process Notice of Qualification of BlackRock 10011, regd. agt. upon whom process against it may be served and shall mail Notice of Formation of HAIR FOR YOUR LLC. Arts. of Org. filed with Secy. of State may be served. DE addr. of LLC: c/o The Global Horizons I L.P. Authority filed with FUTURE, LLC. Arts. of Org. filed with Secy. of N.Y. (SSNY) on June 18, 2008. Office process to: c/o CT Corporation System, NY Dept. of State on 10/20/06. Office Corporation Trust Co., 1209 Orange St., 111 8th Ave., NY, NY 10011, regd. agt. of State of N.Y. (SSNY) on 9/21/07. Office location: New York County. SSNY desig- Wilmington, DE 19801. Arts. of Org. filed location: NY County. LP formed in DE on location: NY County. SSNY designated as nated as agent of LLC upon whom upon whom process may be served. 5/11/93. NY Sec. of State designated as with DE Sec. of State, PO Box 898, Dover, Principal office addr.: 1520 W. Altorfer Dr., agent of LLC upon whom process against process against it may be served. SSNY DE 19903. Purpose: any lawful activity. agent of LP upon whom process against it it may be served. SSNY shall mail process shall mail process to: c/o Insight NYC Peoria, IL 61615. Arts. of Org. filed with may be served and shall mail process to to: The LLC, 620 Park Ave., NY, NY 10021. LLC, 206 Front Street, Ste. 1B, Brooklyn, Notice of Formation of 119 Development NV Sec. of State, 202 N. Carson St., the principal business address: 40 E. Purpose: any lawful activity. NY 11201, Attn: Hubertus Fiedler. LLC. Arts. of Org. filed with Secy. of State Carson City, NV. Purpose: any lawful activity. 52nd St., NY, NY 10022. DE addr. of LP: Purpose: any lawful activity. c/o The Corporation Trust Co., 1209 Notice of Formation of Tisserie 420 WB, of NY (SSNY) on 5/29/2002. Office loca- Notice of Formation of July Ventures, LLC. tion: NY County. SSNY designated as Orange St., Wilmington, DE 19801. LLC. Arts. of Org. filed with Secy. of State Notice of Formation of J.K. AGENCY LLC. Arts. of Org. filed with Secy. of State of NY Name/addr. of genl. ptr. available from NY of NY (SSNY) on 8/14/08. Office location: agent of LLC upon whom process against (SSNY) on 8/29/08. Office location: NY Arts. of Org. filed with Secy. of State of it may be served. SSNY shall mail process Sec. of State. Cert. of LP filed with DE NY Co. SSNY designated as agent of LLC N.Y. (SSNY) on 4/18/08. Office location: County. SSNY designated as agent of LLC Sec. of State, P.O. Box 898, Dover, DE upon whom process against it may be to: The LLC, c/o K & R Realty upon whom process against it may be NY County. SSNY designated as agent of Management, Inc., 207 E. 94th St., NY, 19903. Purpose: any lawful activity. served. SSNY shall mail process to: c/o LLC upon whom process against it may served. SSNY shall mail process to: c/o Peter St. Honore, LLC, 857 Broadway, NY, NY NY 10128. Term: until 12/31/2052. L. Herb, Esq., 225 Broadway, Ste. 3504, Notice of Formation of Creare, LLC. Arts. be served. SSNY shall mail process to: Purpose: any lawful activity. 10003, also registered agent. Purpose: Jeffrey Spielsinger, 226 W. 47th St., 3rd NY, NY 10007. Purpose: any lawful activity. of Org. filed with Secy. of State of N.Y. any lawful activities. (SSNY) on June 19, 2008. Office location: Fl., NY, NY 10036. Purpose: any lawful Notice of Formation of Walton Building activity. Notice of Formation of FIFTH ON THE New York County. SSNY designated as Notice of Formation of Clearwater Associates, LLC. Arts. of Org. filed with PARK LLC. Arts. of Org. filed with Secy. of agent of LLC upon whom process against Construction Consulting LLC. Arts. of Org. Notice of Formation of Faria & Associates NY Dept. of State on 7/1/08. Office loca- State of N.Y. (SSNY) on 6/10/04. Office it may be served. SSNY shall mail process filed with Secy. Of State of N.Y. (SSNY) on Fine Art LLC. Arts. of Org. filed with NY tion: NY County. Principal business addr.: location: NY County. SSNY designated as to: The LLC, Rottenberg Lipman Rich, 104 W. 70th St., NY, NY 10023. Sec. of 8/07/08.Office location: New York County. Dept. of State on 9/19/08. Office location: agent of LLC upon whom process against P.C., 369 Lexington Avenue, New York, NY State designated as agent of LLC upon SSNY designated as agent of LLC upon NY County. Sec. of State designated as it may be served. SSNY shall mail process 10017. Purpose: any lawful activity. whom process against it may be agent of LLC upon whom process against whom process against it may be served to: 37 W. 65th St., 2nd Fl., NY, NY 10023. served.SSNY shall mail process to princi- it may be served and shall mail process to: and shall mail process to: Steven Ebert, Purpose: any lawful activity. Notice of Qualification of Goldman Sachs pal business location:1202 Lexington 1220 N. Market St., Ste. 850, Wilmington, Esq., Ebert & Associates, LLC, 350 5th Mount Kellett Capital Partners Employee Ave., Suite 102, NY, NY 10028. Purpose: DE 19801. Purpose: any lawful activity. Ave., Ste., 4011, NY, NY 10118, regd. agt. NOTICE OF FORMATION OF LIMITED LIA- Funds GP, L.L.C. Authority filed with Secy. Any lawful activity. 1078927 w.o upon whom process may be served. BILITY COMPANY. The name of the limited of State of NY (SSNY) on 8/25/08. Office Notice of Formation of Devil’s Playground, Purpose: any lawful activity. liability company is Anne Bezamat LLC location: NY County. LLC formed in BEDROCK CAPITAL GROUP, LLC, a domes- LLC. Arts Of Org. filed with Secy. of State (“LLC”). LLC’s Articles of Organization was Delaware (DE) on 8/6/08. SSNY designat- tic Limited Liability Company (LLC) filed N.Y. (SSNY) on 07/11/2008. Office loca- NOTICE OF FORMATION OF INTROPATH filed with NYS Dept of State on 9/4/08. ed as agent of LLC upon whom process with the Sec of State of NY on 8-11-08. NY tion: New York County. SSNY designated LLC. Article of Organization filed with the LLC’s office is located in NY County. NYS against it may be served. SSNY shall mail Office location: New York County. SSNY is as agent of LLC upon whom process Secretary of State of NY (SSNY) on Secretary of State (“SOS”) has been des- process to: 85 Broad St., NY, NY 10004. designated as agent upon whom process against it may be served. SSNY shall mail 07/11/2008. Office location NEW YORK ignated LLC’s agent upon whom process DE address of LLC: 2711 Centerville against the LLC may be served. SSNY shall process to:c/o Cohen & Sprung, LLC, County. SSNY has been designated as against LLC may be served and SOS shall Road, Ste. 400, Wilmington, DE 19808. mail a copy of any process against the LLC 1250 Union Turnpike, New Hyde Park, NY agent upon whom process against it may mail a copy of any process against LLC Cert. of Form. filed with DE Secy. of served upon him/her to The LLC, Attn: 11040. Purpose: any lawful activity. be served. The Post Office address to served upon SOS to LLC, c/o Anne State,, P.O. Box 898, Dover, DE 19903. Richard T. Cohen, 2 Fifth Ave., Ste. 17E NY, which the SSNY shall mail a copy of any Bezamat, 885 Park Ave, NY, NY10021. LLC’s Purpose: any lawful activity. NY 10011. General Purposes. Notice of Formation of 11 Rector Street, process against the LLC served upon purpose is to engage in any lawful act. LLC. Arts. of Org. filed with Secy. of State him/her is C/O the LLC 244 fifth Ave, Notice of Qualification of GS Mount Kellett of N.Y. (SSNY) on 7/24/08. Office loca- Suite# D207. New York, NY 10001. METRO REHABILITATION PARTNERS, Capital Partners Access Fund, L.P. tion: NY County. SSNY designated as Purpose of LLC: to engage in a any lawful LLC, a domestic Limited Liability Coming Up Authority filed with Secy. of State of N.Y. agent of LLC upon whom process against act or activity. Street address of Principal Company (LLC) filed with the Sec of on the Calendar (SSNY) on 7/25/08. Office location: NY it may be served. SSNY shall mail process Business location is:244 Fifth Ave. Suite# State of NY on 8-6-08. NY Office location: County. LP formed in Delaware (DE) on to: The LLC, 11 Rector St., NY, NY 10006. D207. New York, NY 10001 New York County. SSNY is designated as October 13th 7/17/08. SSNY designated as agent of LP Purpose: any lawful activity. agent upon whom process against the upon whom process against it may be Name: JDY HOME, LLC Art. Of Org. Filed LLC may be served. SSNY shall mail a Small Business served. SSNY shall mail process to: 85 Notice of Formation of New York Phone Sec. Of State of NY 7/9/08. Off. Loc.: New copy of any process against the LLC Broad St., NY, NY 10004. DE address of Card LLC, Art. of Org. filed Sec’y of State York Co. SSNY designated as agent upon served upon him/her to The LLC, 4 E. October 20th LP: 2711 Centerville Rd., Ste. 400, (SSNY) 7/9/08. Office location: NY County. whom process against it may be served. 84th St., NY, NY 10028. General purposes. Healthcare Wilmington, DE 19808. Name/address of SSNY designated as agent of LLC upon SSNY to mail copy of process to THE LLC, each genl. ptr. available from SSNY. Cert. whom process against it may be served. 295 5th Avenue., Ste. 1616, NY, NY Notice of Qualification of Paulson Access October 27th of LP filed with DE Secy. of State, SSNY shall mail copy of process to 37-13 10016. Purpose: Any lawful act or activity. II LLC. Authority filed with NY Dept. of Accounting Townsend Bldg., Dover, DE 19901. 74th St., Store #4, Jackson Heights, NY State on 9/2/08. Office location: NY Purpose: any lawful activity. 11372. Purpose: any lawful activities. Notice of Qualification of East 12th Street County. Principal business addr.: 225 November 3rd JV LLC, App. for Auth. filed Sec’y of State Liberty St., 7th Fl., NY, NY 10281. LLC Notice of Formation of Creative Print Notice of Formation of Synergy Dental (SSNY) 8/7/08. Office location: NY County. formed in DE on 11/25/03. NY Sec. of Business of Law Technologies, LLC. Certificate of Merger Management, LLC. Arts. of Org. filed with LLC org. in DE 6/4/08. SSNY designated State designated as agent of LLC upon filed with Secy. of State of NY (SSNY) on Secy. of State of NY (SSNY) on 08/19/08. as agent of LLC upon whom process whom process against it may be served November 10th July 28, 2008. Office location: New York Office location: New York County. against it may be served. SSNY shall mail and shall mail process to: CT Corporation Small Business Guide County. SSNY designated as agent of LLC Principal office of LLC: 18 East 50th copy of process to c/o Nat. Reg. Agents, System, 111 8th Ave., NY, NY 10011, upon whom process against it may be Street, 8th Floor, New York, NY 10022. 875 Ave of the Americas, NY, NY 10001, regd. agt. upon whom process may be Call John Gallagher served. SSNY shall mail process to SSNY designated as agent of LLC upon the Reg. Agt. upon whom proc. may be served. DE addr. of LLC: c/o The @ 212-210-0189 Goldstein Rubinton Goldstein & DiFazio, whom process against it may be served. served. DE office addr.: 160 Greentree Dr., Corporation Trust Co., 1209 Orange St., PC, 18 West Carver Street, Huntington, SSNY shall mail process to the LLC at the Dover, DE 19904. Cert. of Form. on file: Wilmington, DE 19801. Arts. of Org. filed to place your classified NY, 11743, Attn: Arthur Goldstein, Esq. address of its principal office. Purpose: SSDE, Townsend Bldg., Dover, DE 19901. with DE Sec. of State, PO Box 898, Dover, advertisement today Purpose: any lawful act or activity. Any lawful activity. Purpose: any lawful activities. DE 19903. Purpose: any lawful activity.

October 6, 2008 | Crain’s New York Business | 37

CNYB 10-06-08 A 39 10/2/2008 8:16 PM Page 1

BUSINESS CORPORATE LADDER Banker finds life after Bear Stearns PAGE 41 buck ennis

GOTHAM GIGS All business SUSIE GHARIB, 57, loves to ask tough questions. As co-anchor RunwayRunway fans’fans’ dilemmadilemma of PBS’s Nightly Business Report, she’s on the floor of the Don’tDon’t likelike L.A.L.A. move,move, butbut needneed theirtheir weeklyweekly fixfix New York Stock Exchange every working day. PRINT PAST Born in New York, Ms. Gharib earned a master’s in international economics from Columbia University. She wrote for the Associated Press and Newsweek while she was in school, and later for Fortune. Ms. Gharib moved to television in the early 1980s and has been with Nightly Business for 10 years. BIG NAMES She has become known for her no-nonsense interviews with important figures, including Warren Buffett and President George W. Bush. “I have a passion for digging up information, telling it and analyzing it,” she says. TOUGH TIMES With Americans anxious about the economy, Ms. Gharib is trying to provide context. “People want to know how to protect their jobs,” she says. “And we separate the news from the noise by getting these answers every single night.” —sarah studley EXPERT OPINIONS IT’S NOT WORKING: Runway fan Kim FALL TV SEASON PICKS Bassalian points out i’m excited about the return the disconnect of series, like Dirty Sexy Money between Los Angeles and the show’s and Gossip Girl, that weren’t Fashion Week finale. on for long because of the writers’ strike. Fringe,

Dollhouse and Life on Mars are buck ennis a few of the promising new programs. BY KIRA BINDRIM RUNWAY EFFECT* People are looking for on’t tell her boss, but Kim Bassalian wasn’t home sick on Sept. 12. Sales at Mood a strong The 25-year-old graduate student and part-time teaching assistant Fabrics (where comeback was at Mercedes-Benz Fashion Week, where she sweet-talked her contestants buy from 24, materials) which had way into a lounge at one of the tents to watch Project Runway’s latest a weak group of finalists show their collections. are up 20% outing last time. Ms. Bassalian, who has finagled meet-and-greets with more than Applications We have our first flop, Do Not a dozen contestants, is one of legions of devotees of the reality show, Disturb, and the Knight Rider at host school revival doesn’t look hopeful. which pits aspiring fashion designers against one another. Parsons have Reality shows like American Her trek to the tents might have been her last chance to hobnob grown by 39% Idol are still popular. People with finalists who have sewn their way through Manhattan exclusively. In February, Weinstein like variety, and now they have Co. sold Runway to Lifetime Entertainment, which disclosed plans to split next season’s filming Average weekly more and better TV choices. between New York and Los Angeles.The announcement was a blow to aficionados, who can’t viewership has —christy tanner D Editor in chief imagine Runway leaving Bravo or New York—even if the geographic shift is just part-time. increased 345% TV Guide Online “I’m not happy about the switch,” Ms. Bassalian says. “The designers See RUNWAY on Page 40 *From 2004 premiere to present.

October 6, 2008 | Crain’s New York Business | 39 CNYB 10-06-08 A 40 10/2/2008 8:17 PM Page 1

BUSINESS LIVES Runway fans torn on partial move to L.A.

Continued from Page 39 charges that Weinstein Co.broke its Idol, one of the most popular TV the show, and we’re very proud of filming in the garment district con- contract by failing to give NBC shows ever, has made “You’re going that,”Mr.Gunn says.“But we’re ful- nects very nicely with the finale at right of first refusal. The company to Hollywood” an on-screen man- ly embracing L.A.and showing new Fashion Week. It’s going to be dis- plans to appeal the ruling, and a tri- tra during auditions. dimensions the city has to offer.” associated if they’re in L.A.” al could delay or scrap Lifetime’s an- “I’m not going to say I’m crazy The sixth season, currently being Though faithful viewers credit a ticipated January premiere. about Runway’s move, but I’m not filmed, includes challenges particu- number of elements, from the off- A number of shows, including against it,” says Wanda Mann, 36, lar to the area, he adds. beat assignments to designer men- ABC’s Ugly Betty and HBO’s In who has watched religiously since The show’s judges—supermod- tor Tim Gunn, for their loyalty, Treatment, have recently moved to the second season. “I think of it as a el Heidi Klum, designer Michael many give kudos to New York as New York from Los Angeles, but diversion, like when the Sex and the Kors and Marie Claire Fashion Di- Runway’s backdrop. The show has City girls took their trip to L.A.” rector Nina Garcia—have also always been Big Apple-centric, signed on for the move.With the as- with challenges at Gristedes, the ‘I’d love to see NYC character surance that at least Runway’s cast Museum of Natural History and the for deb mignucci, 47, dropping would remain, some say the new lo- Hershey’s store in Times Square. more celebrities Project Runway isn’t an option, as it cation could become a fashion “do.”

Jay McCarroll, the season one win- would mean canceling a weekly TV “Personally, I would love to see newscom ner, made a dress inspired by the and red carpet date with her two daughters. “So more celebrities and red carpet Chrysler Building. much of the show’s character is New challenges,” says Laura Kluvo, a WHO’S WATCHING challenges’ York,” says Ms. Mignucci, publish- contributor to the popular Blogging RUNWAY Creative tension er of Fit Pregnancy magazine. “But Project Runway. “Bring on the Average audience for first 11 episodes “new york is a huge part of the for me to stop watching, it would glamour.” of each season. show,” say Tom Fitzgerald and have to get truly silly.” The legal fracas means fans Viewers All Lorenzo Marquez of Project Run- Ms. Mignucci—whose friends might have to wait to program their Season 18-49 viewers gay, a Runway-oriented blog writ- once pretended it was her birthday TiVos,but it seems little could keep ten from what they call a “bitchy gay Runway wouldn’t be the first to at a restaurant so that Tim Gunn, them away from what Mr. Gunn 1 598,000 883,000 perspective.” “It’s not just the fash- shift production or talent in the who happened to be dining there, calls “television crack.” 2 1,112,000 1,499,000 ion capital of the U.S., but all those other direction. would visit their table—worries “People come up to me on the people jammed up together on that Donald Trump’s The Apprentice that he in particular will be out of street and say,‘I’ll never forgive you 3 2,275,000 3,392,000 little island naturally form a more filmed its sixth season in the City of place on the West Coast.But his de- for getting me hooked on that 4 2,517,000 3,585,000 creative environment,” the two say. Angels, and Conan O’Brien has cision to make the trek to Tinsel- show,’ ” he says. “It’s addictive.” There’s still hope. Last month, confirmed that he will move there town will help keep her and others 5 2,627,000 3,933,000 NBC won a preliminary injunction to take over from Jay Leno as host from defecting. COMMENTS? Source: Bravo against the sale. The network of The Tonight Show.And American “New York has played a role in [email protected]

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40 | Crain’s New York Business | October 6, 2008 CNYB 10-06-08 A 41 10/2/2008 8:19 PM Page 1

BUSINESS LIVES CORPORATE LADDER Tim Davenport Banker bounces back Survives meltdown The timing couldn’t have been better.He joined the London-based PERSONNEL FILE to take a top position firm just weeks before it acquired the carcass of Lehman Brothers—a COMPANY Barclays Capital at Barclays—and just move that might have dramatically TITLE Managing director altered his career prospects if it had in the nick of time occurred earlier. AGE 46 “It’s been a tough year for the in- RÉSUMÉ Bear Stearns, head of BY AARON ELSTEIN dustry, but I’ve truly been fortu- structured derivative products; nate,” Mr. Davenport says. Merrill Lynch, head of derivative all street’s solutions worst catastro- Arcane specialty phe since the he owes his good fortune to the fact FAVORITE RESTAURANT 1930s is taking that, while bankers pitching initial Gramercy Tavern an enormous toll public offerings or corporate merg- HOBBIES Skiing, tennis onW thousands of investment bankers ers are a dime a dozen,he specializes wondering what happened to their in something few can grasp:creating firms and their positions, and how complex derivatives contracts based which candidates to interview. they will find work that will pay on foreign currencies. Even the “Tim has an extensive back- enough to cover the mortgage and banker’s father, once an assistant ground in creating innovative solu- their kids’ private school costs. general counsel at Ford, never quite tions with derivative products,” says Tim Davenport, a father of four, understood his son’s job. Ivan Ritossa,Barclays’head of glob- got a glimpse of the economic abyss Mr. Davenport’s mandate at al markets trading-Asia Pacific,for-

in March, when his firm, Bear Barclays is to assemble a crew of eign exchange and prime services. buck ennis Stearns Cos.,imploded around him. eight to 10 staffers and build busi- Recruiters estimate Mr. Daven- He joined thousands of other jobless ness in foreign exchange derivatives, port’s compensation at about $1.25 parents’ washing machine and de- Street path, from which he has nev- bankers,whose numbers have snow- a market that reached $56 trillion of million a year. tergent. er wavered. balled along with the crisis. notional value last year,according to After mastering the local laun- Even with his extensive experi- Mr. Davenport is actually one of the Bank for International Settle- Careful planning dry scene, Mr. Davenport lobbied ence, getting the Barclays job wasn’t the lucky ones. In August, the 23- ments. Though similar instruments his career is the result of meticu- his parents to let him leave his pri- a slam dunk. Mr. Davenport had to year Wall Street veteran and deriva- based on mortgages have rocked the lous design. Mr. Davenport was vate school in the Detroit suburbs endure 21 interviews before he got tives expert was appointed manag- financial world, Mr. Davenport’s shrewd in business even in his and attend Phillips Academy An- an offer. He says he thanked the ing director and head of foreign sector remains on sounder footing. youth. As an adolescent, he made dover in Massachusetts because he friend who recommended him by exchange structuring for the Amer- Right now, the executive’s about $1,000 a year cleaning the wanted to prove himself on a larger sending a “case of good Bordeaux.” icas at the New York office of Bar- biggest challenge is sifting through patient gowns used in doctors’ of- stage. He majored in economics at clays Capital. a forest of résumés and choosing fices.He kept costs low by using his Harvard and then got on the Wall COMMENTS? [email protected]

The World-Wide Group and the New York City Educational Construction Fund welcomes Meet NYC Comptroller WILLIAM THOMPSON

With the city’s politics in turmoil over the mayor’s decision to seek a third term, Comptroller William Thompson discusses why he plans to remain a to candidate for mayor even if it means running against Bloomberg. He will be questioned by Crain’s editor 250 East 57th Street is a one million-square-foot, Greg David and another journalist on the city’s difficult financial and economic prospects given the mixed-use development with 170,000 square feet of financial crisis. retail space at the corner of 57th Street and Second Avenue. Exciting retail opportunities are available. DATE: TUESDAY, OCTOBER 21, 2008 TIME: 8:00-8:30A.M. NETWORKING BREAKFAST 8:30-9:30 A.M. PROGRAM VENUE: HILTON NEW YORK Our special thanks to 1335 Avenue of the Americas Ariel Schuster and Izzy Anthony of between 53rd and 54th Streets Robert K. Futterman & Associates. Chase Welles and Jacqueline Klinger of COST TO ATTEND: Northwest Atlantic Real Estate Services $70 for individual tickets if prepaid by October 14; $75 thereafter. $650 for tables of ten if prepaid by October 14; $750 thereafter. For retail leasing information, contact Ariel Schuster or Izzy Anthony, To register go to crainsnewyork.com, or fax your business card and Robert K. Futterman & Associates, at: credit card information to “Thompson Breakfast” at 212-210-0499 212.599.3700 THE WORLD-WIDE GROUP 950 Third Avenue, New York NY 10021

NYC EDUCATIONAL CONSTRUCTION FUND Hon. Michael R. Bloomberg, Mayor Hon. Joel I. Klein, Chancellor www.250e57.com Jamie Smarr, Executive Director

October 6, 2008 | Crain’s New York Business | 41 CNYB 10-06-08 A 42 10/3/2008 5:05 PM Page 1

Times Square - The Ultimate BUSINESS LIVES New York Location EXECUTIVE MOVES

ACCOUNTING & CONSULTING EXECUTIVE PROMOTIONS Geller Family Office Services: Pamela Crain’s lists the promotion and hiring of New York Blechman, 41, was named relationship area senior executives on a space-available basis, manager, a new position. She was with priority given to positions in New York City. formerly managing director at The fastest way to get an announcement into Foundation Source. Crain’s is to submit details online by filling out the Milestone: Douglas McGann, 39, was form at www.crainsnewyork.com/submit. The named partner. He was formerly a Executive Moves column is also available online. regional director at Citigroup. Salibello & Broder: Crain’s cannot confirm receipt of listings or say Daniel R. Zeman, 60, when they will appear. joined as tax partner. He had been partner at PricewaterhouseCoopers. Evercore Partners Inc.: Ray E. Newton ADVERTISING & COMMUNICATIONS III, 44, was appointed senior managing Edelman: Justin Blake, 37, was appointed director. He was formerly a senior managing director, corporate and public managing director at Perseus. affairs. He was formerly director of • Entire 5th floor 13,800 sf communications at the Partnership for LAW • Available December 2008 New York City. Milberg: Paul F.Novak, 46, joined as • Work letter available to qualified tenants Gibbs & Soell: Luke Lambert, 43, was counsel. He had been assistant attorney • 100% commission paid on signing promoted to president from senior vice general at the Michigan Department of • Across from the new New York Times Building president and managing director, New Attorney General. York. • 24/7 building access and building security Mary C. Buhay, 43, joined as senior MEDIA & ENTERTAINMENT • Convenient to all transportation director of marketing, a new position. Bravo Media: Karen Seminara, 36, was She had been senior vice president, named chief financial officer. She was FOR LEASING INFORMATION PLEASE CONTACT: corporate communications, at formerly vice president of finance at Grant Greenspan Medialink Worldwide Inc. WNBC. Glow Worm: Mark Drossman, 47, joined Essence Communications Inc.: David L. 212-471-4340 • [email protected] as executive creative director, a new Flemister, 43, was named associate position. He was formerly senior partner publisher. He had been a vice president and creative director at Ogilvy. at Time Warner. THE KAUFMAN ORGANIZATION Pontiflex: Tony Peluso, 43, was named Grandparents.com: Amy Goyer, 47, was WWW.KAUFMANORGANIZATION.COM vice president, strategic accounts. He appointed senior vice president of was formerly director of sales at Q outreach, a new position. She had been Interactive. head of the grandparenting program at Siegel+Gale: Thomas Mueller, 39, was the AARP Foundation. appointed global director, dynamic Nickelodeon Kids and Family Games media, a new position. He had been vice Group: Shaan Kandawalla, 32, was president creative director at Martha promoted to vice president, retail and Looking to voice your opinion? Stewart Living Omnimedia. licensed games, from director of digital games. ARCHITECTURE & DESIGN W magazine: Erik Hoopingarner, 37, was 'OôTOôMYCRAINSCRAINSNEWYORKCOMTALKôTOôJOINôTHEô-Yô#RAINSôINTERACTIVEôCOMMUNITY BBG-BBGM: Marc Hochlerin, 49, joined named sales development director. He as principal. He had been a principal at had been managing director, group sales, Shen Milsom & Wilke. at Elite Traveler magazine. Perkins Eastman: Thomas K. Fridstein, YES Network: Michael Spirito, 32, was 57, joined as principal. He had been a promoted to vice president, business principal at RMJM Hillier. development and digital media, from director of business development and FINANCE & INSURANCE digital media. America Land Services Inc.: Marc Lawrence, 39, was promoted to senior REAL ESTATE vice president and managing director Studley: Richard Eaddy, 47, was named from vice president, business senior managing director. He was development. formerly principal at ET Partners,

HOT JOBS WANTED: DIRECTOR ORGANIZATION Sotheby’s Institute of Art JOB DESCRIPTION Running a graduate school for students interested in working in the commercial art world MOST IMPORTANT TASK Expanding enrollment to a capacity of about 300, from the current 110 CREDENTIALS NEEDED Success managing a prestigious institution of higher education or fine art, a publishing record and personal relationships within the arts community SALARY About $200,000 RECRUITER Howe-Lewis International DOWNSIDE Unlike the overall Sotheby’s brand, it is not well-known UPSIDE Heading up a prestigious school with growth potential The school was acquired from Sotheby’s by Cambridge Information Group in 2003 but maintains a royalty-based licensing agreement with the auction house. The New York branch—there are campuses in London and Singapore—has an annual budget of $5 million, most of which comes from tuition. The institute has more than 6,000 alumni around the world. —MIRIAM KREININ SOUCCAR CNYB 10-06-08 A 43 10/2/2008 8:33 PM Page 1

BUSINESS LIVES TABLE TALK by Bob Lape which he co-founded. salmon skin in prox- The knife and fork Carlos A. Nascimento, 40, was promoted imity to chocolate approach is best, and to manager, application services, from senior developer of application systems. malted milk shakes if Dijon mustard boggles the brain. gets into the mix, so SERVICES 5 Napkin Burg- much the better. Agenda for Children Tomorrow: Linda er’s decor is a similar The running Selvin, 48, was appointed executive whimsical wedding mates to the 5 Nap- director. She was formerly executive of this and that. kin Burger—two director at the International Dyslexia There are dangling napkins would do Association, New York branch. meat hooks, indus- it—are veggie, ahi Okapi Partners: Laura A. Bissell, 30, was trial lighting, tile tuna, lamb kofta, appointed managing director. She was 5 NAPKIN formerly strategic relationship manager floors and walls, a Italian turkey (with at SunGard. huge square ban- BURGER mozzarella, spicy Palladia Inc.: quette in the center 630 Ninth Ave. tomato sauce and Dennis O’Connor, 59, (at West 45th Street) joined as vice president for finance and of the large open vinegar peppers), administration, and chief financial (212) 757-2277 room, and collec- www.5napkinburger.com cheddar-bacon bur- officer. He was formerly interim chief tions of old clocks ger and inside-out financial officer at United Way of New and seltzer bottles. burger. This is the York City. Side booths are chal- same 10-ounce beef Platinum Maintenance: Victoria CUISINE Eclectic DiMattina, 23, was promoted to lenging to squeeze patty wrapped in let- account executive from senior executive into because of over- WINES 100 choices, 13 by tuce, with pickles assistant. size table stands. the glass; 55 beers and tomatoes. SelectMinds Inc.: Michael M. Richardson, Once seated, DRESS Informal There are a few 49, was named chief technology officer. guests are seen to by other main courses, He was formerly chief technology a congenial crew as NOISE LEVEL Lively such as Steak Diane, officer at Sterling Infosystems. free with iced tea re- Tunisian salmon, SolarSmart: David S. Cohen, 54, was PRICE RANGE $11.95- fills as advice on $23.50 and lobster roll appointed chief operating officer. He navigating the menu sliders. had been chief operating officer at of comfort food. WINE MARKUP 120%- New York style Dempsey Myers & Co. 300% Splashlight: Joe Zeff, 42, was named Warm artichoke cheesecake, seven- creative director, a new position. He had and mozzarella dip, CREDIT CARDS All major layer blackout cake been president at Joe Zeff Design Inc. small for $10.75, is and good blueberry Ed Gabel, 44, joined as director, nevertheless a tasty RESERVATIONS pie are among computer-generated illustration, a new starter to share. Recommended desserts ($7), but my position. He was formerly CGI Other early options HOURS Mon.-Fri., 11:30 vote goes to the specialist at Joe Zeff Design Inc. ($7.75 to $12.75) a.m.-midnight, Sat.-Sun., 11 espresso brownie Winter Wyman: Ian Ide, 38, was buck ennis include mild, deli- sundae.The brownie promoted to general manager from a.m.-midnight ECLECTIC DISHES: partner. Chef Andy D’Amico mixes bodacious burgers and sushi maki rolls cious hand-cut pork and ice cream are at 5 Napkin Burger. The restaurant has become a mealtime magnet on Ninth Avenue. chili festooned with = Outstanding crowned with espres- Jonathan Mazzocchi, 37, was promoted = Excellent to general manager from partner. white cheddar, ci- = Very good so caramel, whipped lantro and crème = Good cream and salted TELECOMMUNICATIONS fraîche. Vietnam- peanuts. AT&T Inc.: John C. Jefferson, 45, was ese-style spring rolls Shakes ($5.50) promoted to vice president of external filled with vegetables, mussels are thick, rich and retro. affairs from director of municipal affairs. Theater district steamed in ale, and raclette fondue Serious drinks are in great sup- —sarah studley with potatoes and mushrooms are ply,from scores of beers to a startling other pleasing beginnings. wine list. To find Chilean sparkling Four meal-size salads are con- wine and a Brazilian red where Italy, BEST OF BOB LAPE gets new ‘joint’ structed around chipotle-spiced Spain, Germany, Switzerland and sliced steak, Szechuan chicken, Ca- Austria get a pass is unusual, as is a More pit stops for the casual set. 5 Napkin Burger that demands taking up the chal- jun shrimp and a 10-ounce burger $900 Cheval Blanc in a burger joint. lenge and discovering what all the patty. Lots of greens and reds Some burger joint! Wildwood Barbeque ½ goes heavy on the fuss is about. How could you not? abound in the vegetable compo- www.brguestrestaurants.com The daunting burger is the focal nents, but I’m not thrilled with the COMMENTS? [email protected] 225 Park Avenue South (at East chuck; skip sauce point of chef Andy D’Amico and shrimp-and-watermelon one, nor 18th Street), Manhattan. on naked patty Simon Oren’s latest Ninth Avenue am I keen about the sauce on the (212) 533-2500. In a playful urban- mealtime magnet. The partners in naked patty. It’s too much like ane- rustic setting designed by David Nice Matin are stringing feeding mic Thousand Island—OK for veg- Rockwell, former NYC motorcycle he most eye-catching stations together in the theater dis- gies and cheeses, but not doing cop “Big Lou” Elrose lays on a full item at Nice Matin on trict, geographically and on the much for meat. range of “Q” styles. All-natural the Upper West Side— bang-for-the-buck scale. They op- As for the burgers, there are sev- meat in a certified green eatery. the 5 Napkin Burger— erate Marseille,Nizza and 5 Napkin en species, served with crisp, house- Noisy fun. is now the name of a Burger on the same block between made fries.The original sandwich is Tnew theater district eatery. West 44th and West 45th streets. 10 ounces of freshly ground chuck Bourbon Street Bar and Grille Imagine a burger so jaw-chal- The newcomer occupies what slathered with Comté cheese, lenging, succulent and loaded with was Jezebel, and a few Southern caramelized onions and rosemary www.bourbonny.com luscious accessories that it might re- traces remain on a menu that eccen- aioli. Its juices runneth over onto a 346 W. 46th St. (between Eighth quire five napkins to deal with the trically mixes bodacious burgers soft white roll, and only a crocodile and Ninth avenues), Manhattan. juicy runoff.It’s an irresistible notion with sushi maki rolls. Eel and could get its jaws around the thing. (212) 245-2030. A bilevel slice of New Orleans French Quarter decor replete with ex-Commander’s take on NOLA’s flavorful food. 777 Eighth Ave. (between West comer to West Harlem, this one Palace chef Tommy Hines’ accurate 47th and West 48th streets), Man- with a Thai-Latin beat, two talent- Nomad hattan. (212) 777-8100. Chef Walter ed chefs and an engaging service www.nomadny.com. D’Rozario of Bay Leaf and Utsav crew. 78 Second Ave. (near East Fourth Festive India fame brings gently Street), Manhattan. (212) 253-5410. tweaked Indian classics to a base- Thunder Jackson’s SUPERIOR OFFICE Flavor- and value-packed North ment location at bargain basement 169 Bleecker St. (at Sullivan Street), AVAILABILITIES African outpost with a garden. prices. $10.95 buffet lunch! Manhattan. (212) 677-6700. This Well-made Algerian, Moroccan and “urban roadhouse” is actually more 212.594.2700 Tunisian tajines, couscous and more. Talay of a sports bar, but Chef Ian www.talayrestaurant.com Russo’s inspired comfort food— Spice Fusion 701 W. 135th St. (at 12th Avenue), including “dirty” burgers, steaks Indian Bistro Manhattan. (212) 491-8303.Yet and duck frites—makes it worth a SLGREEN.COM BOURBON STREET: A slice of New Orleans. www.myspicefusion.com another duplex hospitality new- stop.

October 6, 2008 | Crain’s New York Business | 43 fp template 5/19/08 3:59 PM Page 1

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