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UNCHARTED TERRITORY The city has spent more than a decade trying to figure out what to do with Governors Island. Michael Samuelian is the man with a plan PAGE 13
VOL. XXXIII, NO. 25 WWW.CRAINSNEWYORK.COM
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P001_CN_20170619.indd 1 6/16/17 8:25 PM JUNE 19 - 25, 2017 CRAINSNEW YORK BUSINESS
FROM THE NEWSROOM | JEREMY SMERD | EDITOR IN THIS ISSUE
A biz case to close Rikers 4 IN CASE YOU MISSED IT 5 ENTERTAINMENT THERE IS AN ECONOMIC CASE for closing the jail on Rikers Legislature 6 ASKED & ANSWERED expected Island, and it has nothing to do with the savings taxpayers to pass would realize by reforming the city’s 19th-century approach 7 REAL ESTATE film and TV diversity bill to criminal justice. Don’t get me wrong: Shutting down 8 VIEWPOINTS the penal colony would itself be a net positive for the city. 9 THE LIST Reforms such as making it easier for the accused to make FEATURES bail could reduce by as much as half the jail’s population of 12 LIFE ON THE FLIP SIDE 9,500 inmates. And a smaller inmate population could save the city $540 million in annual operating costs after 10 years, 13 FANTASY ISLAND the nonpartisan Lippman Commission concluded. 16 FROZEN ASSETS But those savings are a rounding error compared LaGuardia is the with the economic cost of keeping Rikers open. The only local airport reason has nothing to do with the jail itself and every- “ thing to do with the 400-plus acres it sits on and one big where a runway problem that could be largely solved should the land be could be added. made available for redevelopment. Doing nothing The problem, as so many New Yorkers know, is our lousy airports, which consistently rank among the is not an option P. 6 worst in the nation for delays. At the top of the list is REGINA MYER LaGuardia, which is about 200 feet across the East River from Rikers. Gov. Andrew 20 GOTHAM GIGS Cuomo and the Port Authority are spending billions of dollars to remake the ter- minals, but if nothing is done to allow the airport to get more planes in and out, the 21 SNAPS new amenities will amount to a “more attractive place to sit and wait for delayed 22 FOR THE RECORD planes,” said Jamie Torres Springer, a partner at HR&A Advisors. 23 PHOTO FINISH Torres Springer spoke last week during our real estate conference (see page 7), CORRECTION which looked at potentially game-changing development projects. His idea of using WSP USA’s firmwide revenue was $5.1 billion in Rikers to add a runway at LaGuardia is not his alone. It was suggested in an April 2016. Previously the firm reported only its U.S. report by the commission created to study closing the jail and was put forward in a design revenue in the list of the largest engineering Crain’s story last year on how to reimagine the island. firms in the New York area, published June 12. The reason it has become a focus of planners is simple: All three of the metro area’s airports are space-constrained. But JFK is surrounded by the wetlands of a national recreation area. Newark is hemmed in by highways and housing. LaGuar- dia is the only place where a new runway could be situated. Doing nothing is not an option. The Regional Plan Association estimates that by 2030, failure to add runways would mean missing out on 40 million passengers and $17 billion in eco- nomic activity annually. Expanding LaGuardia could make up $7.5 billion of that. As this week’s cover story about Governors Island shows, there’s not a lot of ON THE COVER transformative development opportunities left in New York City. Rikers is one. The PHOTO: BUCK ENNIS problems at the jail underscore the opportunity the island offers us.
DIGITAL DISPATCHES CONFERENCE CALLOUT JUNE 28 Go to CrainsNewYork.com CRAIN’S REGISTER Every year BREAKFAST FORUM Crain’s identifies the best employers in > THE TWO LEADING Republican New York City. If you candidates for mayor, Assembly- love working at your woman Nicole Malliotakis and company, let us know. businessman Paul Massey, will take To register your firm on the issues and each other in a or to learn more about debate moderated by Crain’s. the contest, visit bestplacestoworknyc.com. THE YALE CLUB There is a $199 registration fee, and the OF NEW YORK deadline is June 30. Visit CrainsNewYork 8 to 9:30 a.m. .com/BestPlaces to see previous honorees. [email protected] ■ SUBMIT If you just launched a company, moved or opened a new Vol. XXXIII, No. 25, June 19, 2017—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for location, let us know so we can share double issues the weeks of June 26, July 10, July 24, Aug. 7, Aug. 21 and Dec. 18, by Crain Communications Inc., 685 Third the news. Go to our For the Record Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send section at CrainsNewYork.com/FTR. address changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Ave., Detroit, MI 48207-2912. For subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. Click on the red button to submit. (GST No. 13676-0444-RT) ©Entire contents copyright 2017 by Crain Communications Inc. All rights reserved. BUCK ENNIS
2 | CRAIN’S NEW YORK BUSINESS | June 19, 2017
P002_CN_20170619.indd 2 6/16/17 8:25 PM WHAT’S NEW June 19, 2017
AGENDACity should wash its hands of law scrapped by a federal judge
t’s one thing for the City Council and Mayor Bill de Blasio to pass measures sought by their friends in the labor movement who have political operations that help to elect them. Transactional and ugly as that may be, it’s politics. But there’s a solid line that they may Inot cross, which is to illegally aid and abet unionization drives, as they did by enacting a 2015 law regulating car washes. Don’t take our word for it; a federal judge ruled so last month. “Lest there be any doubt about the plain meaning of the text,” U.S. District Judge Alvin Hellerstein wrote, CUT AND DRIED: “the legislative history makes clear that a central purpose of Local Law 62 The city has no is to encourage unionization in the car-wash industry.” He backed up that good reason to appeal a judge’s conclusion with quotes from council members. ruling against car- The law that the judge struck down created two different versions of a wash regulations. mandate. Car washes with a collective bargaining agreement had to buy a $30,000 surety bond, while those lacking one needed a $150,000 bond. The Crain’s reported in 2014 that Make the Road had used millions of dol- nominal idea was to ensure money would be available should workers be lars in government contracts to build a membership that it then recruited stiffed by their employers on wages. But the law’s effect was to coerce car- for organization drives funded by labor unions. The mayor and Council wash owners who could not afford the more expensive bond to go union— Speaker Melissa Mark-Viverito even attended a rally for car-wash workers despite a federal statute saying laws can- and their unionization effort. not take sides in battles between labor The mayor and council knew their bill Owners of car washes told council and management. members that the double standard was That restriction is widely known in risked being invalidated but passed it unfair and illegal. They said that rather government circles. It’s why unions are anyway to please the labor movement than lead to the creation of higher-paying not mentioned in many bills they lobby jobs, it would force the city’s 150 or so car for. Lawmakers know not to set one pay scale for union workers and washes to lay off workers and further automate their operations. Yet the another for nonunion workers, much as they might want to. council did not listen. The car washes hired a high-powered lawyer (for- Why, then, did the council and mayor set two standards for car washes? mer Corporation Counsel Michael Cardozo) and sued. For two years, the To please the three groups that for two years had been trying to organize law has been a boon only for lawyers. Two years and counting: Rather than car-wash workers: the Retail, Wholesale and Department Store Union; pass a revised bill, the city decided last week to appeal the judge’s ruling. New York Communities for Change; and Make the Road New York. The city should wash its hands of this illegal law. — THE EDITORS
FINE PRINT Many lines were omitted, but only three words were added to the script of The Public Theater’s controversial Shakespeare in the Park production of Julius Caesar, which features a Trumpian portrayal of the title role. Criticizing a crowd for blindly adoring Caesar, Casca says, “If Caesar had stabbed their mothers on Fifth Avenue, they would have done no less.”
BY GERALD SCHIFMAN STATS
25 WORDS OR LESS LABOR OF GUV
IN HIS SEVENTH YEAR as governor, AND THE CITY Andrew Cuomo is taking heat for the MTA’s troubles, but pledged state “A ‘yes’ vote on this funding for its capital plan has ballooned. is truly an insult STATE CONTRIBUTIONS TO MTA CAPITAL PLANS (IN BILLIONS) to anyone who $8.5 breathes. Portion of the 2015–19 capital % plan covered by state funds, —Peter Iwanowicz, executive director 26.1 up from 2.4% in 2010–14 of Environmental Advocates of New York, on a bill passed, 32-28, by the $2.5 Portion of the 2015–19 capital state Senate to shift funding from $1.0 % plan covered by federal funds, clean-energy programs to subsidize $0.0 23.3 down from 42.6% in 2010–14 struggling nuclear plants. 2000–04 2005–09 2010–14 2015–19 Dollar figures are adjusted for inflation.
BUCK ENNIS ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY. SOURCES: Citizens Budget Commission; Metropolitan Transportation Authority
June 19, 2017 | CRAIN’S NEW YORK BUSINESS | 3
P003_CN_20170619.indd 3 6/16/17 8:26 PM AGENDA ICYMI CRAINSNEW YORK BUSINESS EDITOR IN CHIEF Rance Crain publisher, vp Jill R. Kaplan executive assistant Devin Arroyo, 212.210.0701 EDITORIAL What the Uber ruling means editor Jeremy Smerd managing editor Brendan O’Connor assistant managing editors Erik Engquist, for the gig economy Jeanhee Kim, Robin D. Schatz web editor Amanda Fung JUDGE’S DECISION LAST WEEK that Uber should have copy desk chief Telisha Bryan art director Carolyn McClain classified three former drivers as employees, not inde- photographer Buck Ennis senior reporters Joe Anuta, Aaron Elstein, pendent contractors, was a big deal for workers’ rights Matthew Flamm, Daniel Geiger A reporters Rosa Goldensohn, advocates and could have a wider impact on employers. It con- Jonathan LaMantia, Caroline Lewis firmed a state Department of Labor ruling that let the drivers data reporter Gerald Schifman web producer Peter D’Amato collect unemployment insurance, and sets the stage for other editorial intern Alexandra Semenova columnist Greg David cases involving Uber drivers in New York. The ruling, by a state contributing editors Tom Acitelli, administrative law judge, also casts uncertainty over other so- Theresa Agovino, Erik Ipsen, Cara S. Trager ADVERTISING called gig economy companies, whose business plans depend on classifying workers as independent contractors, www.crainsnewyork.com/advertise who are not entitled to health or unemployment insurance or other benefits. advertising director Irene Bar-Am, 212.210.0133, [email protected] “This has to be making these other companies nervous,” said David Weisenfeld, a professor at the Cardozo School senior account managers Lauren Black, Zita Doktor, Rob Pierce, of Law. “They’ve always known this is a vulnerability, and when a ruling goes against Uber they have to take a look Stuart Smilowitz, Debora Stein senior marketing coordinator at how they deal with their people.” At the same time, he added, “This is an early step toward an ultimate resolution Charles Fontanilla, 212.210.0145 that’s going to be years away.” [email protected] sales coordinator Devin Arroyo, The ride-hail giant has vowed to fight the ruling all the way to the New York Court of Appeals if necessary. Weis- 212.210.0701, [email protected] enfeld expects Uber to tweak its practices so that the ruling, which Judge Michelle Burrowes said applies to “others ONLINE general manager similarly situated,” no longer does. Rosemary Maggiore, 212.210.0237, [email protected] “It should really have a cascading effect on how Uber treats its workers,” said Catherine Ruckelshaus, general CUSTOM CONTENT counsel of the National Employment Law Project, an advocacy group. But, she added: “Uber is going to fight this at director of custom content Patty Oppenheimer, 212.210.0711, every stage. There have been similar decisions in other states, and it hasn’t changed its practices.” [email protected] multicultural sales manager Giovanni Perla, There have also been decisions in Uber’s favor. Weisenfeld said policy makers need to change employment laws [email protected] senior custom marketing manager to take into account that technology has blurred the line between independent contractor and employee. Until then, Sonia David, [email protected] the lawsuits will continue. custom project manager Danielle Brody, [email protected] “This ruling doesn’t directly impact Handy,” Ruckelshaus said, referring to the company that relies on contractors EVENTS to clean and fix homes. “But it might give Handy workers an idea that just because they’re called an independent www.crainsnewyork.com/events director of conferences & events contractor, that label may not matter.” — MATTHEW FLAMM Courtney Williams, 212.210.0257, [email protected] manager of conferences & events Special delivery Adrienne Yee, [email protected] DATA POINT tection. Federal prosecutors last month events coordinator Ashlee Schuppius, The West End Concourse connecting ladled out a 20-count tax evasion charge [email protected] AFTER A RECENT $20 MILLION the former Farley Post Office to Penn to the company’s former chief financial AUDIENCE DEVELOPMENT Station opened June 15, giving com- PAYOUT TO TWO MEN WRONGLY officer, Robert Bertrand. director of audience & content partnership development Michael O’Connor, muters access to LIRR trains from the CONVICTED OF A CRIME, THE CITY 212.210.0738, west side of Eighth Avenue and West Makeup removal [email protected] 31st Street. The post office is being -con HAS NOW SPENT NEARLY $200 Avon Products CEO Sheri McCoy is REPRINTS reprint account executive Lauren Melesio, verted into Moynihan Station. MILLION ON WRONGFUL CONVICTION reportedly mulling stepping down 212.210.0707 amid criticism from shareholder activ- SETTLEMENTS SINCE 2014. PRODUCTION Tall tale? ists that the beauty product company’s production and pre-press director Georgia architect Jeehoon Park is suing turnaround efforts are slow-going and Simone Pryce media services manager Nicole Spell Skidmore Owings & Merrill, claiming that Avon should end McCoy’s five- SUBSCRIPTION CUSTOMER SERVICE that 1 World Trade Center bears a strik- Time is running out (of employees) year run in the C-suite. Avon’s stock www.crainsnewyork.com/subscribe ing resemblance to a tower he designed Publisher Time Inc. is cutting 300 dropped after posting a loss last month. [email protected] for his graduate thesis at the Illinois In- jobs—4% of its global workforce—with 877.824.9379 (in the U.S. and Canada). $3.00 a copy for the print edition; or $99.95 stitute of Technology in 1999. Park al- more than half the cuts in the U.S. The one year, $179.95 two years, for print leges Skidmore came across his design layoffs affect print, corporate and sales subscriptions with digital access. to contact the newsroom: through one of its associate partners, employees. The company wants to boost www.crainsnewyork.com/staff who happened to be his grad school its digital media and video offerings. 685 Third Ave., New York, NY 10017-4024 adviser. phone: 212.210.0100; fax: 212.210.0799 Permanent installation Entire contents ©copyright 2017 Crain Communications Inc. All rights Cut to the Core The Metropolitan Museum of Art reserved. ©CityBusiness is a registered The state Board of Regents reduced the named chief operating officer Daniel trademark of MCP Inc., used under license amount of Common Core reading and Weiss its new CEO, a position he had agreement. math test days for the next school year. filled on an interim basis since Thomas CRAIN COMMUNICATIONS INC. Imagine after all this time BOARD OF DIRECTORS Public school students in grades three Campbell resigned in February amid chairman Keith E. Crain through eight will be tested for two days controversy. Weiss retains his title of The National Music Publishers president Rance Crain on each subject instead of three. president, overseeing the Met’s financ- Association is in the process of treasurer Mary Kay Crain, Cindi Crain adding Yoko Ono to the writing senior executive vp, William Morrow es, administration and day-to-day op- executive vp, director of strategic A bigger tribute erations. The Met has a $15 million credits of John Lennon’s iconic operations Chris Crain 1971 song “Imagine.” In a 1980 executive vp, director of corporate The 9/11 Tribute Center moved to a deficit for fiscal 2017 and still needs to operations K.C. Crain 36,000-square-foot space at 92 Green- name a new director. interview, Lennon said Ono played senior vp, group publisher David Klein a large part in the writing of the vp/production, manufacturing David Kamis wich St. that the September 11th Fam- chief financial officer Bob Recchia ilies’ Association says will give it more In the soup song and should be credited, but chief information officer Anthony DiPonio room for displays and draw larger Soupman Inc., which operates restau- “those days I was bit more selfish founder G.D. Crain Jr. [1885-1973] tour groups. It had been housed at a rants and licenses recipes using the … I sort of omitted to mention her chairman Mrs. G.D. Crain Jr. [1911-1996] secretary Merrilee Crain [1942-2012] 12,000-square-foot space across the name and likeness of Al Yeganeh—the contribution.” The NMPA action is street from the World Trade Center site man immortalized as the “Soup Nazi” in accordance with Lennon’s wish.
since 2006. on Seinfeld—filed for Chapter 11 pro- AP IMAGES, BUCK ENNIS
4 | CRAIN’S NEW YORK BUSINESS | June 19, 2017
P004_CN_20170619.indd 4 6/16/17 8:26 PM AGENDA ENTERTAINMENT
New TV diversity bill expected to pass Unions, studios support allocating $5 million of the state film tax credit to encourage the hiring of more female and minority TV writers and directors BY MIRIAM KREININ SOUCCAR
bill to encourage diver- Cuomo—who approved a renewal of of the salaries of female and minority sity among TV writers and the tax break this year—will sign it. writers and directors could earn a tax directors is expected to pass “We’ve met with the governor’s folks credit, with caps of $50,000 per episode the Legislature by session’s many times, and they’ve expressed and $150,000 for a show’s entire season. Aend on June 21. support for the goal of diversity,” said The allocation is only 1.2% of the The bill would affect only those shows Lowell Peterson, executive director of total tax credit, but the legislation’s that benefit from the state’s $420 million the Writers Guild of America East. The backers say that will be enough to film and TV production tax credit. Two governor’s office did not respond to a make an impact in writers’ rooms. Hispanic legislators, state Sen. Marisol request for comment on the bill. “This is the first step on how we can Alcantara and Assemblyman Marcos “The principle is one I think every- create diversity so my son can see sto- Crespo, sponsored the bill, which calls one agrees with—that we need more ries about him that are told from his STILL THE ONE: Thede hopes the bill for $5 million of the incentive pro- diverse storytelling on TV,” Peterson point of view,” said Alcantara, who was will lead to more TV writers like her. gram to be allocated toward the salaries added. “Audiences are diverse, and hav- born in the Dominican Republic. of TV writers and directors who are ing more points of view in the writing Robin Thede, a head writer for the women or people of color. room really helps.” now-canceled Nightly Show With Larry Correspondents’ dinner,” Thede said. Slightly different versions of the bill Wilmore, is working on her own late- “I’m tired of breaking records. This passed last year in the Senate and the Small steps night program, The Rundown With bill will be such a great incentive, Assembly, but they were not reconciled Roughly 13% of TV writers are Robin Thede, produced by Chris Rock and we’re not asking the state for any and so never made it to Gov. Andrew people of color, and 28% are women, and due to air in the fall on BET. She more money.” Cuomo’s desk. Supporters of the new according to the Writers Guild of said there are close to 160 writers for all She said that last year the bill faced legislation, including the Writers Guild America. Even Sesame Street, a show the late-night comedy shows, of whom a lot of opposition but that this year of America East, the Directors Guild famous for celebrating difference, did four are women of color. “more people in Albany understand of America and all the entertainment not hire its first African-American “I’m still the only African-American it’s not affirmative action or something unions, as well as local studios such as female writer, Geri Cole, until three woman to be the head writer on a late- that disqualifies other candidates. It’s
Broadway Stages, said they hope that years ago. If the bill becomes law, 30% night show and for the White House just about expanding your horizons.” ■ DIRECTORS GUILD ON TV DIVERSITY
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June 19, 2017 | CRAIN’S NEW YORK BUSINESS | 5
P005_CN_20170619.indd 5 6/16/17 5:59 PM AGENDA ASKED & ANSWERED REAL ESTATE INTERVIEW BY JOE ANUTA
REGINA MYER DOWNTOWN BROOKLYN PARTNERSHIP
egina Myer played a leading role in two major devel- We have this opments that helped transform Brooklyn during the fantastic street- past 15 years: the rezonings of Downtown Brooklyn “ and the Williamsburg and Greenpoint waterfront, and scape that hasn’t Rthe construction of the 85-acre Brooklyn Bridge Park. Named reached its full president of the Downtown Brooklyn Partnership in September, potential. We can Myer is now promoting the area’s commercial development, change the land- which has just started to take off with projects including a scape in terms creative of ce hub being built atop the Fulton Street Macy’s and a former self-storage facility converted into of ces. of connectivity
What is the Downtown Brooklyn Partnership? We’re an alliance of leading downtown businesses, as well as the manager of three business improvement districts. Taken together, we are the top not-for-pro t in the area. Our mission is to create a safe and beautiful downtown and advocate for dynamic growth.
What do you want to accomplish? We are working on two speci c park projects that should make a difference: BAM Park on Lafayette Avenue and Willoughby Square between Gold and Duf eld streets. There’s also the concept of the Brooklyn Strand, which began with the partnership’s former DOSSIER president, Tucker Reed. We have this fantastic street system that hasn’t reached its full potential. We can change the landscape in terms of open space, pedestrian activity and connectivity between WHO SHE IS President, Downtown Brooklyn and the Navy Yard. I’m also excited about Downtown Brooklyn Partnership New York University’s expansion in the MetroTech area. AGE 57 Will the private sector pay for most of these changes? BORN Manhattan Some of this is about business partnerships, but big moves like RESIDES Park Slope, increasing open space take government resources, and I certainly Brooklyn am poised to advocate for that. In terms of zoning, projects like EDUCATION: B.A. in mixed-use towers from Alloy Development will need approvals, arts and ideas and M.A. so we are strongly advocating for those as well, especially since in urban planning, many of them will include investments in public infrastructure. University of Michigan RELATED MATTER Why are we seeing new of ce projects in Downtown Brooklyn only now, In a former role as vice more than 12 years after the rezoning? president of Hudson We saw a lot of residential growth rst, and over time the world Yards Development changed. Jobs no longer need to be tied to a trading oor or a law Corp., Myer helped plan rm of ce. In 2004 the Flatiron District and West Chelsea weren’t the massive project the job growth centers that they certainly are now. There are a being built by the Related Cos. on Man- number of really important players that see tremendous opportu- hattan’s West Side. nity in Downtown Brooklyn today, including Tishman Speyer and the Kushner Cos. All of these projects have commercial compo- WHEEL NEW YORKER nents, which is key to Downtown Brooklyn’s mixed-use success. Myer has pedaled the 40-mile TD Five Boro Bike Tour each of the past eight years with family There are also major residential projects moving forward. What do you and friends, completing the think of JDS Development’s proposal to build the borough’s tallest tower? most recent course in May. Number one, it’s incredibly handsome. SHoP Architects’ design is TOUR OF DUTY Myer sits on really inspirational. JDS and a number of developers have come the board of NYC & Company, the to realize the strength of the new Flatbush Avenue spine. Remem- city’s of cial tourism agency, ber, most of our train lines run beneath Flatbush: You have the 2, which has been steering visitors 3, 4, 5, B, D, N, Q, R and W trains. All of those connect to various toward Brooklyn. She is also a sections of lower Manhattan and up to Union Square and beyond. fellow at the Urban Design Forum and said she will soon be named to What are your thoughts on restaurant development? the board of the American Institute I would love to see the landmarked Gage and Tollner building of Architects’ New York Chapter. BUCK ENNIS [a former steakhouse] return to sit-down food use, as it was for about a century before it fell into the hands of Arby’s and others. There are a lot of good fast-casual places that have opened up in the past few years, but we can’t wait to see some more great places for people to hang out after work. ■
6 | CRAIN’S NEW YORK BUSINESS | JUNE 19, 2017
P006_CN_20170619.indd 6 6/16/2017 2:57:56 PM AGENDA REAL ESTATE
City ought to think big to serve growing population Conference highlights need for visionary development BY JOE ANUTA
Manhattan architect high- be made by building bigger in the city’s lighted a troubling fact last least dense areas. week: Even if the city were “Why not Staten Island?” asked developed to the maximum John Cetra, who presented a vision to Acapacity allowed by law, it still would increase transit access to and through- allow only enough room to house 9.5 out the island, which already has am- million New Yorkers. That’s a problem ple parkland and the city’s cheapest for two reasons. Squeezing into every land and rents. square foot that has been zoned for Architecture firm CetraRuddy, BIG THINKERS: Ginsberg, Degnan, Cetra, Torres Springer and Ward are all in for helping residential development is virtually where he is a principal, suggested the city grow. impossible, and the local population is reactivating an abandoned rail line projected to eclipse 9 million by 2040. along the north side of the island and “We are running out of options,” said creating a new spur running to New- “We have an affordability crisis, borhoods could be sited there with Mark Ginsberg, principal at Curtis & ark Airport, where New Jersey Tran- but in addition to supplying units, we little fuss. A waste treatment, com- Ginsberg Architects. sit and Amtrak also stop. Within the need to help with demand by creating posting or waste-to-energy plant could Ginsberg and four other develop- borough itself, various commercial jobs,” said Jamie Torres Springer, a help the city make serious strides to- ment and infrastructure experts pre- and residential nodes could be con- partner at HR&A. ward its envi- sented their big ideas to help the city nected by filling in gaps in bike lanes The most fea- ronmental goals, meet its growing needs as part of a and increasing ferry service to other sible location to We have an Torres Springer Crain’s real estate conference last week. piers beyond the borough’s sole land- boost flights is affordability crisis, said, and a so- Each focused on a borough. ing at the St. George Terminal, where a LaGuardia Air- “ lar energy farm Ginsberg’s vision for the Bronx new mall and the nation’s tallest Ferris port, by building but along with could produce entails decking over a sunken wheel are under construction. a new runway on supplying units, we and store hun- Metro-North rail line, a concrete can- “When you start to connect the el- Rikers Island in dreds of mega- yon running from the Harlem River to ements through better transit systems, place of the jail need to stoke demand watts of power. Westchester County that could essen- suddenly other opportunities come complex that the by creating jobs Chris Ward of tially create new forward,” Ce- city hopes to close engineering firm land in a city tra said. “There within 10 years. AECOM pre- where vacant are four areas HR&A’s plan would involve laying an- sented its vision of developing the Red properties are where we con- other strip of tarmac on the reclaimed Hook waterfront and using the pro- scarce. A line centrated our isle, which would be connected to a ceeds to extend the No. 1 subway line. of apartment thinking.” new terminal next to the existing air- John Degnan, chairman of the Port buildings could A resort de- port. Because Rikers is more than Authority of New York & New Jer- not only sit velopment and 400 acres, other infrastructure uses sey, discussed his ambitions for a new atop the tracks marina could often loathed by residential neigh- Manhattan bus terminal. ■ but could also rise at a cove spur increased along the bor- density in the ough’s southern surrounding coast, which areas closest is lined with to stations on beaches. The Metro-North Fresh Kills area and the B, D, 2 could be devel- and 5 lines. Dis- oped into the ruption to rail city’s largest service could be park and com- minimized by plemented with using modular cultural uses, construction, while a tech he suggested, campus could especially given sprout around
UDDY that modular CUNY’s College buildings (like of Staten Island ETRA R most apart- and Wagner ments) are typ- College, both ically 60 feet located nearby. long and the CITY OF TOMORROW: Top architects shared Lastly, Cetra- their visions for the Bronx, Rikers Island and HR&A A DVISORS, C Ruddy envi- rail cut happens Staten Island at the annual Crain’s real estate to be 55 feet conference. sioned a new mixed-use com- INSBERG , across. The idea would be costly, munity, Staten AND G in part because market-rate construc- Island City, at the foot of the Goethels
URTIS tion on even ordinary pieces of land Bridge, where developers could build doesn’t pencil out in many areas of the housing for up to 300,000 people. Bronx, but it has been done before at Apartments are not the only need. the Morrisania Air Rights project. By 2030, the city is projected to lose There are more than 100 miles of out on $17 billion in annual econom- similar rail cuts across the city, enough ic activity because of the limited ca- to sprout apartments for nearly pacity of our airports, according to
BUCK ENNIS, COURTESY OF C 400,000 people. A similar dent could HR&A Advisors.
June 19, 2017 | CRAIN’S NEW YORK BUSINESS | 7
P007_CN_20170619.indd 7 6/16/17 8:49 PM AGENDA VIEWPOINTS
Developing in Midtown remains a Herculean task Obstacles are daunting with or without rezoning
THE CITY COUNCIL will— BlackRock, the world’s largest money cost more than $1 billion finally—soon approve manager, to the Far West Side. to build. He will need rents a rezoning of Mid- Reviving the corridor will be diffi- well north of $150 a square TOWERING ACHIEVEMENT: Holliday’s project has taken town East designed cult because nowhere are the hurdles foot to make any profit. more than a decade and will to do nothing less to building more daunting, as SL Green Holliday noted that cost more than $1 billion. than save the city’s CEO Marc Holliday enumerated last despite the record job most crucial business week at a Crain’s real estate conference. growth in the city and the district and the most Sites are challenging and expensive robust economy, only four new office Weisbrod made the proposal that made GREG DAVID prodigious payer of to assemble, buying out existing ten- projects are underway in Midtown. it politically possible. property tax. ants is time-consuming and filled with No wonder, given the risks. He ticked The administration predicts that the Let’s hope it works. drama, navigating land use and land- off all the ways he violated the rules of zoning could spur as many as 16 new The Park Avenue office neighbor- marks issues with the city is risky and real estate with 1 Vanderbilt, notably office towers. That seems optimistic. hood is home to more Fortune 500 construction costs are the highest in by building on spec (without tenants in Reaching anywhere near that number companies than anywhere else in the the nation. Without more density and hand) and not using as-of-right zoning. will require brave developers, receptive country and—because it receives no tax height than allowed by current zoning, Even getting this far in the Midtown real estate financing markets and a city breaks—represents 10% of the property projects are simply not economical. East rezoning has taken almost five economy that continues to prosper. tax base. But it has been losing its allure Holliday’s signature 1 Vanderbilt years and some tough-minded govern- After the City Council acts, the to the Hudson Yards area—and to a tower across from Grand Central took ment officials. A fair amount of credit future of Midtown East will be up to lesser extent the new construction at 11 years to assemble, required a special goes to Robert Steel, deputy mayor the private sector. The stakes for the the World Trade Center—because Mid- rezoning of the Vanderbilt corridor, during the Bloomberg administration, city are enormous. ■ town East’s buildings are more than 70 necessitated a deal with the city for whose long if losing battle for new zon- years old, on average. One can see the $220 million in improvements to the ing did effectively make the case for GREG DAVID blogs regularly at impact in relocations, especially that of transit hub and adjacent areas and will change. De Blasio planning chief Carl CrainsNewYork.com.
FROM OUR READERS Deputy mayor, trade group defend city’s housing policy Re: “The price of success” awarded six of our best families but also makes for that clear-eyed and The New York State has never sought the (June 12): public sites to MWBE room for the first rational approach. Association for Afford- removal of a provision I am incredibly proud firms, as an investment responders, teachers, While some advocates able Housing represents requiring for-profit of the affordable-hous- in their growth and health care aides and may wish we could turn for-profit and nonprofit developers to work with ing plan we’ve developed involvement in their office workers who make back the clock to another developers that address nonprofits in order to and are delivering on communities. up the backbone of our time—decades ago— the housing crisis qualify for the 420-c time and on budget. This When it comes to the economy and also face a when city and state offi- head-on by working with program, and we have is the most far-reaching “affordable for whom?” dire shortage of hous- cials could easily finance city and state officials never urged anyone to and comprehensive critique, we’re building ing they can afford. We low-income housing to create and preserve seek such a change on affordable-housing pro- and protecting homes design our housing pro- on their own, that is tens of thousands of our behalf. gram of any city in the for the lowest-income grams to serve everyone, simply not the reality affordable homes. That JOLIE MILSTEIN nation, and contrary to New Yorkers at a record because this has to be a today. If private devel- public-private approach President and CEO the critics, it’s one that is pace. More than 9,000 city for everyone. That’s opers were excluded is the only way to NYSAFAH engaging nonprofits and of our apartments so far the New York I grew up from the construction seriously tackle this Editor’s note: NYSAFAH’s serving lower-income are for families earning in and the one I want to and preservation of challenge—and it has then-Chairwoman Lisa families more than any no more than $24,500 pass down to my kids. affordable housing, it unfortunately led to the Gomez emailed policy plan before it. per year. And 8,600 are ALICIA GLEN would either never get kind of misguided crit- recommendations to A third of the 63,398 for families earning Deputy mayor for housing done or it would be rife icism recently covered Deputy Mayor Alicia affordable apartments between $25,000 and and economic development with financing gaps that in Crain’s. NYSAFAH is Glen after Gomez and being built and pre- $41,000. These units are leave buildings incom- committed to support- other members of an served so far are being the hardest to finance AT A TIME WHEN PUBLIC plete, unmaintained ing low-income New “affordable developer undertaken by the and develop—and we resources are scarce or crumbling. Yorkers, and we will not advisory group” met nonprofit sector. That are delivering them on a and the federal gov- The problems facing be deterred by those who with Glen on March 19, is a huge leap forward scale no administration ernment threatens to New York City’s public would rather play politics 2014. Gomez’s message that’s helping commu- has achieved. And I just cut billions in housing housing—a $17 billion than allow our members the next day called the nity organizations serve directed our housing funds, Mayor Bill de budget shortfall result- to produce affordable recommendations “a more people and grow agencies to provide Blasio understands that ing in broken elevators, housing as quickly and compilation of many their capacity in the another $1.9 billion public-private partner- failing boilers and effectively as possible. people’s opinions from the housing business. We’re toward production of ships are necessary to other aging infrastruc- Additionally, we City Hall meeting.” One also engaging MWBE these lowest-income fully address our city’s ture—should remind us would like to set the was, “Remove require- firms—for-profit compa- units, especially for affordable-housing crisis why we must all work record straight about ment that 420-c appli- nies founded and run by those serving our seniors and ensure that new together to ensure that NYSAFAH’s position cation carry a nonprofit women and minorities— and our veterans. affordable apartments affordable housing is on the 420-c incentive sponsor.” A NYSAFAH in affordable housing I make no apologies are sustainable. His truly sustainable for the program, which was spokesman says Gomez like never before. We for a strategy that serves administration should be low-income families inaccurately reported in was not writing on behalf just carved out and the most vulnerable applauded, not criticized, who need it. the article. NYSAFAH of NYSAFAH.
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BUCK ENNIS include the writer’s name, company, address and telephone number. Crain’s reserves the right to edit submissions for clarity.
8 | CRAIN’S NEW YORK BUSINESS | June 19, 2017
P008_CN_20170619.indd 8 6/16/2017 3:00:22 PM AGENDA THE LIST NEW YORK AREA’S FORTUNATE 100 Chief executives ranked by 2016 total compensation (in millions)
TRENDS
LARGEST RAISES FOR NONDEPARTING FORTUNATE 100 EXECUTIVES FACE VALUE Compensation increase (in millions) Estée Lauder Cos. Inc. Fabrizio Freda $31.7
MSCI Inc. Henry A. Fernandez $15.7
Barnes & Noble Inc. Michael P. Huseby $14.8 PHILIPPE P. DAUMAN STEPHEN A. SCHWARZMAN CONOR C. FLYNN International Business Machines Corp. Dauman left Viacom After taking the top slot At 36, Fortunate 100 Virginia M. Rometty $12.9 following a dispute with on last year’s ranking, newcomer Flynn of the Redstone family. Schwarzman watched Kimco Realty Corp. is AMC Networks Inc. His massive severance his compensation the youngest executive package pushed him to Joshua W. Sapan $12.8 decline by $42.5 on the list. the #1 ranking on this million in 2016. SOURCE: Crain’s research year’s list.
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June 19, 2017 | CRAIN’S NEW YORK BUSINESS | 11
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P012_CN_20170619.indd 12 byappointment only. now serve customers customers now serve Stereo Exchangewill TUNES: CHANGING
BUCK ENNIS BIZ MUSIC 12 |
CRAIN’S NEWYORKBUSINESS FLIP SIDE FLIP
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FAST-FORWARD ON THE
Ann Wasserman reopened their equipment shop,Davidand store—without astorefront After more than30years BY MEGANCERULLO running aSoHoaudio
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J une LIFE 19,2017 industry music changing New York’s series about an 2 PART ongoing ongoing of of S took a leap of faith and signed approaching $2million, David quent retail location. blocks northof store’s the subse - storefront on Broadway, three relocated to an 800-square-foot businessthe Stereo Exchange and flesh,”the David recalled. like eBay in my store, in person, in customers could swap gear. “It was loftcial on West 17th whereStreet, was ina15-by-15-foot commer equipment store. Their first shop Audio—in stereo 1984as aused business—originally David’s called I guess it’s areflection the of ‘me’ generation.” population is into headphones. It’s isolating. so experience,” Ann said. “Today a large of part the listen to music with our and friends it was asocial productstheir are consumed. “David and Iwould lenges are amplified further by changesthe way in shopping online. For Wassermans, the chal- those revenues are as falling customers domuch of their and moreogy technology. Rents are rising while caught at intersection the of real estate, technol- my life,” said Roy, now amotorsports journalist. 1990s, said he couldn’t it to disappear. bear see at Stereo Exchange as an NYUstudent early inthe a former salesman’s home. Roy, Alex worked who experiment:free The loft they space are renting is in tomers by appointment only. It’s arelatively risk- Square loft,wherea Cooper cus - they plan see to 10,000-square-foot SoHo store and up set shop in Wasserman and his wife, Ann, moved out of their In 1988,with yearly revenue Within two years, renamed they The Wassermanslaunched the manyLike retail businesses, Stereo Exchange is “Working there was one of happiest the in times Afteralmost 30 yearssamethe in location, room last month. month. last room heshow anew opened that trade to the committed so remains Wasserman David owner ago. But longtime adecade than more peaked at Exchange Stereo ales - FOCAL POINTS $500,000 to$750,000 and hometheatersystems relaunched thisyear WEBSITE NUMBER OFEMPLOYEES ANNUAL REVENUE YEAR LAUNCHED FOUNDERS/OWNERS INDUSTRY BIZ NAME David andAnn Wasserman Four includingthe owners stereoexchange.com StereoExchange Stereo components components Stereo - were very successful very quickly,” very were successful very David said. among Stereo Exchange’s celebrity clients. “We 2000. Spike Daniel Craig Lee, and Louis C.K.were store’s of $10million increased toin apeak sales ing over to new, top-of-the-line equipment, the $220,000 inrent first their there.year Afterswitch - ata lease 627Broadway. The Wassermanspaid or at stores that appeal to varietyseekers, like Best speakersthat high-end aren’tcarry for online sale equipment stock. The they Wassermans plan to force owners the more to be about selective the make money on through.” people the walking mom-and-pop shops, have actually they because to retail consultant Kate Newlin said. “It’s no longer in SoHo much more of a museum experience,” buying stuff theonline—which makes experience and-pop business can dothat.” advertising,” David said. “Clearly no mom- small, millions of dollars on astore and write it off to companies that come inhere and can afford to lose what’s driving alot of big this money is there are tenant is likely pay more than double that. “I think sermans paid $700,000last year inrent; next the moving into Stereo Exchange’s old space. The Was- its business online—and offers a100-night trial—is mattress and company bedding that most does of in that case.” 60 days. It’d worth $2,500.It’s be unfair competition a $5,000 component that’s out been in fieldthe for compete with that,” David said. “I can’t back take shippingfree and a60-day return policy. “I can’t McIntosh high-end sells ginia, speakersand offers bution. Crutchfield, an electronics in e-tailer Vir are increasingly turning to online outlets for- distri competitors are pushed out, equipment vendors through Amazon or another e-commerce outlet. online, either directly from avendor website or ment, only out to walk empty-handed buy then were coming into store the to listen to equip the - recent years, David said, more and more customers ily responsible for Stereo Exchange’s In struggles. Shop now, buylater THEY CANTRUST SEEKING ARETAILER MARKET: HAVE IDENTIFIEDTHEIR THE WASSERMANS 1984; Stereo Exchange’s location new by will, design, concur. experts Retail “People are increasingly Perhaps it’s then fittingthat Casper, a national As Stereo Exchange and its brick-and-mortar The onslaught of internet shopping is primar
the internet.”the and not just go click-click on to have areal buying experience that can cater to people want who that there is aplace for abusiness sound,”cialized he said. “I believe quality demonstration and- spe wantswho superior product, “Itrust. am cultivating acustomer ing from someone know they and touchsee, and hear before buy- ment that people would like to audio next,” the David said. uum cleaners one moment and from someone is vac- who selling don’twho want to buy speakers Buy. “We are catering to people AUDIOPHILES It’s aclass of quality equip- ■
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BIG UPSIDE Samuelian wants to create a self-sustaining commercial hub.
FANTASY ISLAND Michael Samuelian is charged with turning Governors Island into the city’s next economic engine BY JOE ANUTA
A ONCE-STATELY ARMY OFFICERS’ CLUB that rst opened on Governors Island in 1939 has su ered decades of neglect. Paint is peeling o the high ceilings. Dust cakes the chandeliers. Weeds poke through brick patios overlooking the harbor. But Michael Samuelian, the building’s new steward, sees the island’s modern ruins as the key to unlocking an economic engine that has been nearly 15 years in the making. As the head of the Trust for Governors Island, Samuelian is rolling out a plan to reclaim roughly 1 million square feet of landmarked property from the ravages of time. “You can’t really watch horror movies and have this job,” Samuelian said in the club’s
BUCK ENNIS forsaken kitchen. “You’re constantly walking through abandoned buildings with a ashlight.” CONTINUED ON PAGE 14
JUNE 19, 2017 | CRAIN’S NEW YORK BUSINESS | 13
P013_P015_CN_20170619.indd 13 6/16/17 5:57 PM
P013_P015_CN_20170619.indd 14 the lay oftheland. Samuelian showsAnuta GRAND PROSPECTS REAL ESTATE BUCK ENNIS, THE TRUST FOR GOVERNORS ISLAND 14 |
CRAIN’S NEWYORKBUSINESS and mess halls. The U.S. Army Corps of Engineers Engineers of Corps Army The U.S. halls. mess and prisons hospitals, homes, forts, built colonels and Admirals use. military and of colonial worth turies’ cen several off 1624, kicked Dutch in the Starting tribe. Lenape native for anut the as repository was Nuts andbrass he decade,” said. next the mayor to complete current it. of the limits term beyond the well him take will it surely that large so is task where the more on Island, Governors and skills those endeavor.risk He’s all to need likely a high- deemed then was to what to commit ants ten first the persuaded he also megaproject, of that andmakeup theshape defined that changes zoning elaborate the West he help Side.Not did devise only on Manhattan’s whole cloth from cut being city Cos.’ Related Hudson Yardsthe aminiature project, of 9/11. wake on the planner lead the He was later in of Lower Manhattan revitalization the engineer helped immigrants of Armenian grandson lyn-born the Brook planner, city As a it off. to pull résumé asuitable fewone people with of the itself. for pay must of which space—all education and office of feet commercial new square lion 5mil and service ferry increased rants, nonprofit restau tenants, parks, public features that community 24-7 a create to wants board, trust’s of the majority high. are Expectations of remaking. its phase next the spearheading with September, charged in Island Governors targets. of feathered search in roam collies Two border city’s longest slide. the geese-chasing and hills artificial on playgrounds, nowdren frolic where chil park on a40-acre year up last wrapped City. Jersey Work and of Liberty Statue the lyn, Brook Downtown District, Financial of the views New Yorkunparalleled offers island Harbor, the of middle the in Sitting devoid of cars. largely are and byits ferry, only 172areacres accessible fields idyllic New York and buildings City. Its historic One of Governors Island’s first known functions functions known first One ofIsland’s Governors to ajobhave you for want to start “It’s interesting landed has Hall City Samuelian, In a appoints which administration, Thede Blasio Trust for the to head chosen was Samuelian in place other any unlike is Island Governors
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J une 19,2017 - - ENTIRE CITY. IT’SABLANKCANVAS” - - - - - “GOVERNORS ISLANDISONE DEVELOPMENT OF THEMOSTIMPORTANT a few uses—including a maritime-focused high high amaritime-focused a few uses—including shove off. Samuelian that not-so-subtle suggestion top. at the to wait children fidgety forcing and slide the hogging man grown of the identity the to know demanded and ing for a Crain’s ing pos was Samuelian While own. their space green New Yorkers many consider the and season, already island. the with the public to reacquainting step first a as park 40-acre the fund and infrastructure tricity elec on and water $350 opted to spend million cials 2010, bowedrole out in state offi of ownership its city the After success. limited with island, to redevelop the for proposals requests several issued administration hotel.The Bloomberg resort SquarePants–themed aSpongeBob even stadium, ter, asoccer amuseum, cen hub, a cultural a water-borne transportation unbelievable.” is location the and canvas, a blank “It’s nonprofit of head the Alliance. Waterfront Lewis, city,” entire Roland developmentant the said in sites import most one is of the “Governors Island in. ing roll started theThat’s proposals public good. when for only the used be island the that a requirement for $1 exchange in and state and city over to the tory of terri its rest the but signed Williams, Castle called stone fort a19th-century including edge, northwest monument island’s on the national a22-acre nated town. aghost behind left and up stakes pulled occupant, military last the Guard, Coast the when 1996, until members service and civilians of about 3,000 to apopulation catered later King Burger alcohol-serving only country’s Avenue the and subway.Lexington alley Abowling the of construction the from 1912 in fill mass with land island’s of the size doubled the more than But green space is only half the plan. Aside from from Aside plan. the half only is space But green a thepark,” said, she in slide best the is “This It worked. More than 500,000 people visited last last people visited 500,000 It More worked. than There’s what to on build: of ideas shortage no been government desig later, federal years the Seven photo, a testy mother walked over walked mother photo, a testy SITES INTHE ------wedding hall. wedding aconferencecenter or to operate a want might that companies to entice is looking also trust The guests. or overnight students house similarly could tall— is Building Chrysler the as as long edifice brick grand Hall—a Liggett structure, A nearby inn. a great it make would employees—he said island’s for the preferred of mode transport the said. use,” Samuelian room. wiggle little residents left a on permanent restriction the 2003, in state and city to the island the transferred feds the When there. night people the to spend ting Get even an leap: bigger comes Then community. business afunctioning to create options some food history—plus maritime island’s to the connection of somesort nonprofits—preferablywith to attract is Thegoal framework. the new under deals first the assets.” these howin it activates creative be has to trust anonprofit.“The for Parks, Kelly, of head said New Lynn financially,” Yorkers tax historic addition, In materials. construction on duties and tax recording mortgage the as such of things waivers through taxes cutting matically by dra bills pay the help them ment will Agency Develop city’s Industrial the out with rolled being Aprogram buildings. historic the in space take to payincome for repairs. no significant and funds limited has trust city, the of rehab. need in and vacant are buildings of feet landmarked 1 square edge—the west million north island’s on outdoor the pools two build and buildings historic three to lease plans that spa day aforthcoming with along service park and trust the of offices programs, cultural and arts school,
As he cruised by a former hospital in a golf cart— agolf in by aformer hospital he cruised As not considered aresidential are “Dormitories to sign hopes year, end Samuelian of the the By who tenants by the funded be will they Instead the from grant a Beyond recent million $34 and historic buildings, that’s a big lift buildings, historic and challenges infrastructure many so with required. be otherwise would which taxes, property paying from users end exempt would certain Hall City in percolating Aproposal buildings. landmarked to the repairs of capital lar dol 15 on cents every return will credits “When you have a park this large, large, you this have“When a park - - - - -
6/16/17 5:55 PM Officials are focusing on six historic build- connections of a central business district. “The post office, and Seamless, stop at the ferry ings with the largest floor space and the smallest Finally, while the military coordinated trash terminal,” Samuelian said. amount of rehab needed. But the trust first needs collection and mail services when it occupied the Leasing a critical mass of historic buildings and to complete a number of studies so it can bolster island, it had tax dollars to pay for it. Samuelian upgrading the island’s operations are expected its pitch to prospective tenants and determine how needs to provide those same services without hit- to take two to three years. But that’s just the pre- difficult its job will be. ting tenants with huge common charges. lude to the ultimate vision. Samuelian has received Starting from scratch does present interesting the mandate that Governors Island should even- Gut renovations opportunities such as making the island energy- tually cover its own operating costs, much like The trust is surveying the Brooklyn Bridge and Hudson amount of work each building on River parks. Many advocates say the island needs to be habitable. that mandate can hamstring orga- Not only will Samuelian need to nizations such as the trust if it has persuade the private market to to choose between making money cough up whatever capital dollars AREA OF and operating a space in the way will be required, but future tenants DETAIL that best benefits the public. Sam- also will have to be comfortable uelian, who earned an architec- making all repairs under the exact- ture degree from Cooper Union, ing oversight of the city’s Land- where he is a professor, said there marks Preservation Commission. is enough room to do both. The ferries also present chal- “We have a public asset,” he said. lenges. The trust already spends “Should we just let it lie fallow?” around $4 million annually oper- Successfully leasing the historic ating the Coursen, which can buildings would act as a proof of bring 1,100 people along with concept for the far riskier prospect dozens of cars and trucks from of financing ground-up commer- Lower Manhattan every hour, and cial development. In total, 33 acres operates twice as often during split between the island’s southern peak travel times. and northern edges is expected The city’s expanded East River to accommodate about 5 million ferry service stops at Governors square feet of space. A future rezon- Island on the weekends, and the ing would determine the shape of trust supplements service through the buildings. Samuelian said he a partnership with New York hopes they will command rents Water Taxi, but more is needed. lower than the Financial District— A study by the city’s Economic which at around $60 per square foot Development Corp. and consulting are already a bargain by Manhattan firm Arup aims to determine the standards. Because even the low- additional trips required to sustain est floors will have amazing views, business activity. the trust doesn’t necessarily have to The trust’s initial foray into build high to get there. But it will expansion didn’t go well. In 2009 officials spent independent through solar panels and geothermal have to do a lot of outreach to sell the right type of around $1 million on a used ship that the Daily heating. But should the overnight population ever tenants on Governors Island. Samuelian, who was News deemed “as seaworthy as your average yellow grow large enough, Samuelian could also be called instrumental in securing Coach as an anchor tenant cab.” The trust later sold the ship for scrap on eBay upon to coordinate a new police precinct, medical in Hudson Yards, is a dogged salesman. for $23,600. center and fire station. And the trust eventually On the day of the Crain’s visit, Facebook hap- A new vessel that can hold 400 people is now on its will have to determine the best way to barge sup- pened to be hosting a corporate event on the island. way. But even with that, the trust could have trouble plies to the island and waste off it, because all the “Is Zuckerberg coming?” Samuelian asked a persuading the first tenants to take a seven-minute typical delivery services go no farther than the Bat- colleague as techies in blue shirts began arriving ferry ride away from the amenities and transit tery Maritime Terminal in the Financial District. in droves. “We should go say hi.” ■
June 19, 2017 | CRAIN’S NEW YORK BUSINESS | 15
P013_P015_CN_20170619.indd 15 6/16/17 5:55 PM FOOD | FROZEN ASSETS
less-experienced food startups founded around the same time in Brooklyn. Steve’s owes more than $1 million to manufactur- ing facilities and hundreds of thousands more to investors, according to the bankruptcy fil- ing. Its underlying problem was a capital shortfall that prevented the company from fulfilling its orders. “Just as a lot of customers across the country were getting excited about Steve’s, retailers were getting news they didn’t SCOOPED UP: Stein is one of two remaining employees like,” Stein said, “like ‘Your order after conglomerate Dean Foods agreed to buy the brand for $1 million. is late’ or ‘We have only five of the 10 flavors you ordered.’ And with unfilled orders, not only do you not get the proceeds, you he Fresh Ice Cream Co. of Brook- get the negative consequence that they use the shelf lyn—which does business as Steve’s space for someone else.” and is known for its creative flavors Stein said he mastered ice cream produc- FINDING and dairy-free pints—will be sold tion for local retailers out of the approximately for $1 million to conglomerate Dean 2,500-square-foot space in the former Pfizer Build- TFoods of Dallas, Texas, a sale approved last week ing in Brooklyn, a hub for food manufacturers. And by a Brooklyn bankruptcy court. his team eventually enlisted plants across the coun- ITS COOL Fresh filed for Chapter 11 protection in Feb- try that could capably produce the high-volume fla- ruary with the intention of finding a buyer, said vors for retailers in other states. But problems with Jonathan Pasternak, the company’s attorney. Dean packaging and processing during the transition to Foods, which has been consolidating dairy com- large-scale production in 2014 ate up millions of AGAIN panies nationwide, said it will continue to produce dollars—a loss from which Fresh could not recover. Steve’s pints, now priced at $6 to $8, for an expand- Steve’s Ice Cream grew fast, ing set of regional chains and markets, including Melting away then faltered, twice. After Whole Foods. The company has kept up produc- Start ups often fail to plan for the kind of money tion during bankruptcy and co-founder David required at each stage of growth, said Alek Marfisi, bankruptcy, its owner hopes a Stein will stay on in an as-yet-undetermined role. a small-business consultant and instructor in the new buyer can help the brand Steve Herrell started Steve’s in 1973 as a scoop International Culinary Center’s entrepreneurship achieve its gourmet dreams shop in Somerville, Mass. It immediately became program. Food companies need to be able to lay out popular thanks to the mix-ins staff would smush money for ingredients, supplies, production and into each scoop. Herrell sold the brand in 1977, and delivery long before retailers pay for their orders. BY CARA EISENPRESS it changed hands multiple times. In the 1980s, one And if orders increase rapidly, the need for working owner grew Steve’s to hundreds of stores and went capital multiplies. public, then began manufacturing Steve’s gourmet “If you’re growing quickly, you have to make packaged ice cream. But Steve’s met its end in 1995, assumptions about working capital,” Marfisi said. If as the owner pivoted to make licensed frozen goods those assumptions are off, companies can find that for Tropicana, Weight Watchers and they don’t have enough cash to con- other companies instead. Stein, who tinue production. first worked in one of the scoop shops, STATS Steve’s did have money, though. rose to become CEO of that firm, Stein originally put in $4 million of CoolBrands. He resigned in 2006. his own money and added $3 million Four years later, after buying the more from 2011 to 2014. In Septem- out-of-use Steve’s trademark, he ber 2013 Steve’s raised $1.5 million on opened the company in Brooklyn to $ CircleUp, a crowdfunding platform for ICE CREAM14B SALES capitalize on the borough’s burgeon- consumer goods. A year later investors ing food movement. The pints of annually in the U.S. kicked in $5 million, much of that as premium ice cream, many with ingre- Growth has been flat. convertible notes. It all went quickly. dients made by Brooklyn neighbors, The need for more funding became found a local audience and then a national one. By clear last year, but investors were reluctant to put 2015 the company had $5.5 million in sales, with money into a company with problems, Stein said. orders for about twice that, according to Stein. At In April 2016 the president and co-founder left, its peak, Steve’s was available in 40 states and half of along with the CEO and the CFO. all Whole Foods locations, thanks to runaway hits “I’m a lot better at making ice cream than like Brooklyn Blackout Cake and dairy-free Wild- raising capital,” Stein said. In retrospect, he said, flower Honey Pistachio, which were pushing the he should have grown the business more slowly. brand upward at a rate that could have reached $20 Other observers, however, said speed was nec- million in sales this year, according to Stein. essary: They saw a once-in-a-generation chance Although retail sales in the $14 billion ice cream to secure a spot in supermarket freezers and said business have remained flat in recent years, accord- Steve’s had to take it. ing to independent market-research firm Euro- Requests for Steve’s pints have continued to monitor, sales of dairy-free ice creams—which come in from retailers, even during the bankruptcy, account for about one-third of Fresh’s sales—dou- said Stein, one of two people remaining with the bled from $90 million in 2012 to $185 million in business, which once employed 18. Stein said he 2016. So-called superpremium brands including is optimistic about the company’s sale, despite the Steve’s, Ben & Jerry’s, Häagen-Dazs and Talenti fact that by at least one estimate Fresh could have have been gaining market share as well. been worth as much as $120 million. “I think our Years of experience didn’t prevent Stein from fans will be happy with what they see later this
COURTESY OF STEVE’S ICE CREAM running into the same snags encountered by year,” he said. ■
16 | CRAIN’S NEW YORK BUSINESS | June 19, 2017
P016_CN_20170619.indd 16 6/16/2017 3:05:07 PM CRAIN’S REAL ESTATE ROUNDTABLE ADVERTISING SECTION: INSIDE THE MULTI-FAMILY MARKET
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CRAIN’S Business Breakfast Forum: Wednesday, June 28, 2017 The Yale Club of New York GOP 50 Vanderbilt Avenue 8:00 a.m. – 8:30 a.m. Registration MAYORAL DEBATE and Networking Breakfast 8:30 a.m. – 9:30 a.m. Program Taking on de Blasio? The two leading Republican candidates for mayor will debate the issues on: Cost to Attend: - What went wrong in de Blasio’s fi rst term and how would they fi x it? $135 for individual ticket(s) - How will they grow the city’s economy? $1,350 for table(s) of 10 guests - Do they support the higher minimum wage, paid sick leave, calorie count requirements You must be pre-registered to attend this event. and other regulations on business. Would they seek to roll any of them back? No refunds permitted. - Are President Trump’s policies on immigration, trade and slashing aid to states and cities a threat to New York or not? SPEAKERS: For more event information: Assemblywoman Ashlee Schuppius Nicole Malliotakis 212-210-0739 New York State Assembly, [email protected] District 64 For sponsorship opportunities: Irene Bar-Am Paul Massey, Jr. 212-210-0133 2017 Mayoral Candidate, [email protected] President, New York Investments Sales, Cushman & Wakefi eld MODERATOR: REGISTERTODAY« Greg David, Columnist, Crain’s New York Business » crainsnewyork.com/events-events-gopdebate
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CN018292.indd 1 6/15/17 4:08 PM TO PLACE A CLASSIFIED AD, CALL 1 800 444 6007 OR VISIT CRAINSNEWYORK.COM
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Assistant Vice President, Risk Premia Notice of Formation: USTV Rentals LLC SD Flushing DE LLC filed an App. for Notice of Formation of Omri Dime LLC. (LLC) Arts. of Org. filed with the Sec. of Authority with the NY Dept. of State on Arts. of Org. filed with Secy. of State of Research (AllianceBernstein L.P. - New State NY (SSNY) on April 4, 2017. NY 3/30/2017. Jurisdiction DE. The date NY (SSNY) on 5/5/17. Office location: York, NY) Spprt rsrch & mgmt of system- Office Location: New York County. of its org. is 3/30/2017. Office locat- NY County. SSNY designated as agent SSNY Desig. Agent of LLC upon whom of LLC upon whom process against it atic, alt invstmnt stratgs in Alt Risk Premia ed in NY County. The Secretary of the process against it may be served. State of NY ("SSNY") is designated as may be served. SSNY shall mail proc- space. Assist in due diligence & mgmt of SSNY to mail copy of process to the agent upon whom process against it ess to: c/o The LLC, 800 3rd Avenue, exist’g alt invstmnt stratgs. Build analytical LLC at its principal business location at may be served, the address to which Ste. 3703, NY, NY 10022. Purpose: PO Box 809, New York, NY 10108- the SSNY shall mail a copy of such any lawful activity. tools to track, monitor & evaluate exist’g 0809. Purpose: any lawful purpose. process is: 26 W 17th St., Ste 801, & potential invstmnt stratgs. Resumes: J. Notice of Formation of 75 East Central, NY NY 10011. Address maintained in DE is 850 New Burton Rd. Ste. 201, Alvia, AllianceBernstein L.P., 1345 Ave of LLC filed with SSNY on 4/4/2017. Lo- Contact Joanne Barbieri at cation: Rockland County. SSNY desig- Dover DE 19904. The authorized offi- 212-210-0189 for classified the Americas, New York, NY 10105. JobID: nated as agent of LLC upon whom proc- cer in DE where a copy of its Certifi- AVP-YJE. ess may be served. SSNY shall mail cate of Formation can be obtained is advertising opportunities. process to Peter Agho 10 Dixwell Road, DE Sec’ty of State, 401 Federal St., New City, New York 10956. Purpose: Dover De 19901. The purpose of the any lawful act or activity. company is: any lawful act.
Contact Joanne Barbieri at 212-210-0189 for classified advertising opportunities.
18 | CRAIN’S NEW YORK BUSINESS | JUNE 19, 2017
P018_CN_20170619.indd 18 6/15/2017 6:16:05 PM EXECUTIVE MOVES Advertising Section New hires, promotions and board appointments. Place your listing at crainsnewyork.com/execmoves or contact [email protected]
❚ HEALTH CARE ❚ NONPROFITS ❚ TECHNOLOGY
COPE Health Solutions The Harry Frank Guggenheim Teads Darcie Goodman, Vice Foundation Jim Daily, recently President at COPE Health The Harry Frank Gug- Teads’ President of U.S. Big Solutions, has over 12 genheim Foundation and Canada, has been years of international today announced the promoted to Global health care experience appointment of Daniel President. Daily has serving as a registered F. Wilhelm as its eighth been with Teads since Promotion? President. Mr. Wilhelm, a nurse in both clinical and 2013 and in his four years highly regarded non-prof- leadership roles. it executive and expert on crime and justice with the company has established Teads’ issues, assumed his position June 1. U.S. presence and led the region to an an- Share the news with the New York COPE Health Solutions nual run rate of $150 million. Daily has also business communuty. closed contractual relationships with over Joel Perlman is a 70% of the top 100 comScore publishers, in- Announce new hires, promotions member of the COPE Health Solutions Board cluding strategic partnerships with the likes and board appointments with of Directors. He served ❚ REAL ESTATE of Time Inc., Forbes and Business Insider. as the Executive Vice In his new role, Daily will continue to lead CRAIN’S EXECUTIVE MOVES President, CFO of the Teads’ U.S. operations while also driving Montefiore Health System Brown Harris Stevens the company’s global supply and demand For more information, from 1988- 2016. Mr. Executive Vice President, strategies and relationships. Perlman participated Managing Broker for please contact Debora Stein at in planning and leading the growth of the Miami Beach and Key Montefiore Health System, including its Biscayne, Philip Gutman [email protected] emergence as a premier regional integrated brings more than a de- delivery system. Montefiore is an industry cade of proven executive leader in population health and value-based level leadership in real www.crainsnewyork.com/execmoves arrangements including participation in estate and hospitality the Medicare Pioneer ACO. Mr. Perlman development projects to the Brown Harris Placement Guaranteed has deep expertise in managed care and Stevens team in South Florida. AMC finance and operations and serves as a subject matter expert for COPE Health Solu- tions’ consulting engagements in this area. EXECUTIVEMOVES
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CHICAGO BUS INESS CHICAGOBUSINESS.COM | October 17, 2016 CHICAGO BUSINESS CHICAGOBUSINESS.COM | October 17, 2016 PEOPLEEXECU TIVEON THE MO VESMOVE NEW HIRES SPROMOTIONS SBOARD APPOINTMENTS PEOPLEEXECU ONTIVE THE MO MOVEVES NEW HIRES SPROMOTIONS SBOARD APPOINTMENTS
MARKETING/MEDIA MARKETING/MEDIA MNI Targeted Media Inc., MNI Targeted Media Inc., Stamford, CT Stamford, CT Heather Hein has been promoted Heather Hein has been promoted to Vice President of Sales for the to Vice President of Sales for the Northwestern Region, which spans Northwestern Region, which spans from Chicago to San Francisco. from Chicago to San Francisco. Hein’s promotion was part of a Hein’s promotion was part of a national realignment, designed national realignment, designed to ensure that MNI continues to to ensure that MNI continues to deliver industry-leading customer deliver industry-leading customer service to its more than 1,200 service to its more than 1,200 clients across the country. clients across the country.
Reprinted with permission from Crain’s Chicago Business. © 2016 Crain Communications Inc. All rights reserved. Further duplication without permission is prohibited. Visit www.chicagobusiness.com/section/reprints.
Reprinted with permission from Crain’s Chicago Business. © 2016 Crain Communications Inc. All rights reserved. Further duplication without permission is prohibited. Visit www.chicagobusiness.com/section/reprints.
Honor your executives with a frame or plaque of their Executive Moves listing in Crain’s. Choose from a pewter frame with black matte and glass overlay, a metal shadow box frame with black matte, or a plaque.
Contact Lauren Melesio for more information [email protected]
JUNE 19 2017 | CRAIN’S NEW YORK BUSINESS | 19
P019_CN_20170619.indd 19 6/14/2017 2:38:36 PM GOTHAM GIGS
SET UP SHOP: Until he saves enough to rent a space, Crowley is using his living room to hold his inventory BY LANCE PIERCE of classic clothing
One dapper chap A tie designer turns his living room into a pop-up shop to sell vintage British menswear
ean Crowley’s apartment in Brooklyn bears the Fashion is in Crowley’s blood; his grandfather John unmistakable signs of an Anglophile clotheshorse: Burbidge designed the Priscilla of Boston gown worn by SEAN CROWLEY A Union Jack is draped on a wall, and British row- Tricia Nixon for her White House wedding in 1971. ing blazers and Savile Row tweeds hang from rails Growing up, Crowley developed his style going to flea AGE 36 Srunning the length of the room. A toy-size beefeater and a markets with his father, a master woodworker. The boy BORN Danvers, Mass. pith helmet rest on the sofa. had an English teacher in high school who gave bonus Crowley, a vintage menswear collector and seller, wore points for dressing smartly on exam days. So one day LIVES Bedford-Stuyvesant, Brooklyn an old regimental blazer and a pair of slippers to welcome a Crowley wore his grandfather’s white tie and tails to EDUCATION Emerson College, B.A. in film and television visitor to his living room. The 400-square- school. “I realized that I can dress in an foot space has become a pop-up shop for odd way and it pleases me and it pleases SENSE OF TOUCH The best way It takes a lot to shop vintage, Crowley says, is 3,000 ties and hundreds of items of cloth- “ other people,” he said, “even if they think of work to to hold the piece in your hands. ing he has bought at antiques stores and it’s eccentric and weird.” “Modern-day vintage experts who auction houses. In addition, he sells at area find things In college he found a job with Bobby learn from Wikipedia or online flea markets and maintains an Instagram at a certain Garnett, a vintage collector and seller haven’t actually touched the stuff.” account—Mr.Sean.Crowley—to post items level of quality, known as Bobby from Boston. Garnett THE APPEAL He collects fashion for sale. Neckwear costs $20 to $45. Suits introduced him to British menswear— from the 1930s—which he can go for thousands. with room for which turned him into an Anglophile. describes as “this strange bridge between the Edwardian and modern “It takes a lot of work to find things at markup Crowley works during the day as a ” worlds. You have the lingering a certain level of taste and quality, with senior neckwear designer at Phillips–Van values, aesthetics and proportions room for markup,” he said. When he shops for bow ties, Heusen. He said he is saving up to rent a space where he can of the late 19th century paired with he seeks beautiful colors and patterns, plus a pleasing have a showroom and attract more customers to his busi- new ideas about fabric, attitude and color. It’s a magical time.” shape. He looks for fine weaves in cravats, and hand- ness. “I’m such an inherent hunter and have the patience blocked prints catch his eye. “I’m looking for things that and neuroses and obsession,” he said. “I really take pleasure ADDITIONAL INCOME Crowley is exploring consulting work in the are really simple,” he said. “An unstudied elegance, pared in ferreting out the little crumbs, finding those treasures movie business.
BUCK ENNIS down and minimal.” that are otherwise missed.” — DANIEL BATES
20 | CRAIN’S NEW YORK BUSINESS | June 19, 2017
P020_CN_20170619.indd 20 6/16/2017 3:06:13 PM SNAPS
Word play Reading was the theme of the Literacy Partners fundraiser May 24 at Cipriani 42nd Street. The organization helps adults learn to read and improve their skills. Writer and actress Jill Kargman recited passages from her book Sprinkle Glitter on My Grave. Honoree Sheila Nevins, president of documentary programming for HBO, entertained the crowd with excerpts from her best-seller You Don’t Look Your Age…and Other Fairy Tales.
WCBS-TV anchorman Maurice DuBois, master of ceremonies, with book editor Alina Cho during the annual Evening of Readings event. Honorees Sheila Nevins and Fareed Zakaria, host of CNN’s GPS. The gala raised $1 million.
Battling Alzheimer’s The Alzheimer’s Drug Discovery Foundation, Sending kids which provides funds to camp to develop treatments for the disease, held a The Brotherhood/Sister gala May 10 that raised Sol, a provider of ser- $2.5 million. The foun- vices to youths, such as dation’s co-founder and summer camps and job co-chairman, Leonard training, held a fundraiser Lauder, chairman May 11 honoring artist emeritus of The Estée Carrie Mae Weems. She Lauder Cos., attended received her award from with his wife, Judy Farah Jasmine Griffin, Glickman Lauder. a professor of literature and African-American studies at Columbia University.
Mark Roithmayr, chief executive of the Alzheimer’s Drug Discovery Foundation, Deborah Krulewitch, senior vice president of corporate administration at The Estée Lauder Cos., and Dr. Howard Fillit, founding executive director and chief science officer of the foun- dation, at the fundraiser, held at Sotheby’s head Khary Lazarre-White, executive director and co-founder of Brotherhood/Sister quarters on York Avenue. Sol, actors Bobby Cannavale and Rose Byrne and film producerTerence Winter at the party. Held at Gotham Hall, the event raised about $1 million.
BFA, PATRICK MCMULLAN, COURTESY OF THE BROTHERHOOD/SISTER SOL PATRICK BFA, SEE MORE OF THIS WEEK’S SNAPS AT CRAINSNEWYORK.COM/SNAPS. GET YOUR GALA IN SNAPS. EMAIL THERESA AGOVINO: [email protected].
June 19, 2017 | CRAIN’S NEW YORK BUSINESS | 21
P021_CN_20170619.indd 21 6/16/2017 3:07:12 PM FOR THE RECORD*
NEW IN TOWN ■ Wahlburgers ■ Travelzoo (TZOO-O) disclosed. Avison Young 9,100-square-feet at 245 ed the tenant. It was unclear 1633 Second Ave. Founder Ralph Bartel, a represented the subtenant. Fifth Ave. The modeling whether the landlord, Thor ■ Avocaderia The Boston-based chain, board member, sold 59,688 JRT Realty represented agency signed on for an- Equities, was represented by 254 36th St., Brooklyn co-owned by actor Mark shares of common stock at the tenant, the American other five years at the space a broker in the transaction. The world’s first avocado bar Wahlberg, has opened its prices ranging from $10.65 International Group. in NoMad. Asking rent for opened at Industry City’s third restaurant in the city, to $11.02 per share from the deal was $75 per square ■ Jack Liang, owner of the food hall in Sunset Park. on the Upper East Side. May 25 to May 30 in trans- RETAIL foot. The landlord, The restaurant PokéSpot in The restaurant serves avo- actions worth $651,987. He ■ Trader Joe’s agreed to take Moinian Group, was repre- Union Square, signed a 15- cado dishes and smoothies. ■ Westville now holds 7,370,850 shares. 22,701 square feet at 432 E. sented in-house. Douglas year lease with partners Si- 110 Wall St. 14th St. The grocery chain Elliman Commercial repre- mon Ho and Nathan Leong ■ Gilligan’s This casual American lunch plans to open in the second sented the tenant. for 1,650 square feet at 310 W. Broadway chain opened its sixth REAL ESTATE half of next year. Asking 398 Broome St. The three The pop-up bar and restau- location, in the Financial rent for the deal was roughly ■ Lululemon Athletica plan to open Project Cozy, rant, known for its frozen District. Like the Hudson COMMERCIAL $150 per square foot. The signed a one-year lease at a coffee and juice café, on watermelon margaritas, Street location, the Finan- ■ The New Jewish Home, grocer worked directly with 597 Fifth Ave. for 8,000 the ground floor of NYU’s is back for the summer at cial District site has a full a nonprofit geriatric health the developers, Mack Real square feet. The sportswear 11-story dorm. Asking SoHo Grand Hotel. bar that offers reasonable and rehabilitation system, Estate and Benenson Capital company plans to open a rent was $150 per square happy-hour specials. signed a 20-year lease for Partners, to seal the deal. store in the space by late foot. Eastern Consolidated ■ Phil & Anne’s 49,739 square feet at 1200 July. Asking rent for the represented the landlord, Good Time Lounge Waters Place, Bronx. There ■ Elite Model Management deal was roughly $400,000 Coral Broome Street, and 196 Smith St., Brooklyn BANKRUPTCIES it plans to combine two of has renewed its lease for per month. RKF represent- the tenant in the deal. ■ Phil Casaceli, owner of its adult day care programs West Village bar Daddy-O’s, ■ 411 Rogers Ave. in Mamaroneck and in the teamed up with Food 32 Broadway, Brooklyn Kingsbridge section of the Network chef Anne Burrell The owner of this multi Bronx. Cushman & Wake- DEALS ROUNDUP to open a Mediterranean/ family home filed for field represented the tenant. TRANSACTION SIZE BUYERS/ Italian-style restaurant Chapter 11 bankruptcy Simone Metro Properties TARGET/SELLERS [IN MILLIONS] INVESTORS TRANSACTION TYPE and bar in Cobble Hill. All May 24. The filing cites represented the landlord, Logicor Europe Ltd./Blackstone $13,815.3 China Investment Corp. SB M&A the dishes are the size of estimated assets and Simone Development. Real Estate Advisors (Manhattan) appetizers, and the walls are liabilities of $500,001 Asking rent for the deal was HD Supply Waterworks Group and $2,500 Clayton, Dubilier & Rice Inc. FB M&A covered in metallic orange to $1 million. There $38 per square foot. HD Supply Waterworks and (Manhattan) wallpaper, with vinyl records were no creditors with certain other waterworks business assets/HD Supply GP ■ that reflect Burrell’s “cook unsecured claims. Schrödinger has taken and Management Inc.; HD Supply like a rock star” motto. 26,000 square feet at 120 Holdings LLC; HD Supply Inc. ■ STNMM W. 45th St. to expand its Aquarion Holdings LLC/Macquarie $1,675 Eversource Energy SB M&A ■ Pig Beach 147-35 78th Ave., Queens space in the building to Utilities Inc. (Manhattan) 480 Union St., Brooklyn The taxi company filed for 63,000 square feet. The Albany Molecular Research Inc./ $1,619.5 GTCR LLC; the Carlyle FB M&A The pop-up outdoor Chapter 11 bankruptcy software developer, which 3-Gutinver SL; Permian Investment Group LP barbecue joint has returned May 25. The filing cites works with life-sciences Partners LP (Manhattan) for its third summer season estimated assets of companies, plans to occupy Orion Mine Finance Group, $830.2 Osisko Gold Royalties Ltd. SB M&A near the Gowanus Canal. $100,001 to $500,000 and the entire 21st and 22nd Royalty Portfolio/Orion Mine Its backyard is bigger than liabilities of $1,000,001 floors of the 40-story Finance (Manhattan) most Manhattan play- to $10 million. The creditor building. Asking rent in the Weyerhaeuser Co., timberlands $402.5 BTG Pactual Asset SB M&A grounds. And for the first with the largest unsecured three-year deal was $82 per and manufacturing business in Management US LLC (Manhattan) Uruguay/Weyerhaeuser Co. time, the eatery will be claim is Capital One, square foot. Avison Young, running year-round. owed $908,336. along with an in-house Princeton Growth Ventures LLC $300 Warburg Pincus LLC (Manhattan) GCI team, represented the land- (Manhattan) ■ Public ■ 56 Somers St. lord, Kamber Management. Crosman Corp./Wellspring $151.8 Compass Diversified Holdings FB M&A 215 Chrystie St. 950 Third Ave., Suite 901 Cushman & Wakefield bro- Capital Management LLC (Manhattan) LLC; management of Crosman Corp. Ian Schrager opened a high- The owner of this multi kered the deal for the tenant. end hotel on the Lower East family residence filed for Pinterest Inc. $150 Andreessen Horowitz LLC; GCI ■ Goldman Sachs Group, Merchant Side and called it one “for Chapter 11 bankruptcy Munich American Banking Division (Manhattan) the people.” Rooms start May 24. The filing cites esti- Reassurance Co. agreed at about $200 per night, mated assets and liabilities to take 18,650 square feet Covisint Corporation/Dialectic Capital $102.5 Open Text Corp. SB M&A Management LLC; J. Goldman & Co. and the 367 bedrooms are of $1,000,001 to $10 mil- at 437 Madison Ave. The LP (Manhattan); Roumell Asset decked out with ample USB lion. The creditors with the reinsurance company Management LLC; Vector Capital ports, Apple TV and online largest unsecured claims plans to use the new office Tower Point @ A Street/Rockpoint $86.9 Northwood Investors LLC SB M&A food-ordering capability. are VVSI Corp., Gustoria space to accommodate its Group, LLC (Manhattan); Universal-Investment- Home and Karen Ross. growing teams and expand Gesellschaft mbH into its new space by the Cadre Inc. (Manhattan) $65 Andreessen Horowitz LLC; Ford GCI MOVES AND EXPANSIONS fourth quarter of this year. Foundation, Endowment Fund (Manhattan); General Catalyst STOCK TRANSACTIONS Savills Studley represented Partners; Goldman Sachs Group, ■ Chalait the tenant. Sage Realty Merchant Banking Division (Manhattan); 299 W. Houston St. ■ AllianceBernstein Corp. and JLL represented Individual Investors; Khosla Ventures; Thrive Capital (Manhattan) The teahouse, which Holding LP (AB-N) the landlord, the William specializes in matcha, has Board member Steven Kaufman Organization. Selected deals announced for the week ending June 8 involving companies in metro New opened its third shop, in Elliott sold 15,627 shares of Asking rent for the 10- York. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing shares of a company without the participation of a financial buyer. FB M&A: Financial buyer Hudson Square. common stock May 30 for year deal was $90 per M&A represents a minority or majority acquisition of existing shares of a company with the $22.18 per share in a trans- square foot. participation of a financial buyer. GCI: Growth capital investment represents new money invested in a company for a minority stake. ■ Super Burrito action worth $346,5678. SOURCE: CAPITALIQ 97-01 Shore Front Parkway, He now holds no shares. ■ Elefterakis, Elefterakis Queens & Panek inked a 12,000- ■ Nielsen Holdings PLC GET YOUR NEWS ON THE RECORD After hosting many pop-up square-foot sublease at * nights at nearby burger (NLSN-N) 80 Pine St. The personal- ABOUTTo submit companyTHIS SECTION openings, moves or real estate deals, or to receive further information, joint Rippers, two Bay area Jamere Jackson, CFO, sold injury law firm plans to email [email protected]. natives determined to bring 11,500 shares of common move from 111 John St. For the Record is a listing to help businesspeople in New York find opportunities, potential Mission-style burritos to the stock May 30 for $38.55 and to occupy the entire new clients and updates on customers. Bankruptcy filings from the eastern and southern city opened this joint at the per share in a transaction 38th floor of the 40-story districts of New York are listed alphabetically. Stock transactions are insider transactions at New York companies obtained from Thomson Reuters and listed by size. Real estate 97th Street concession stand worth $443,325. He now building. Asking rent for listings are in order of square footage. by Rockaway Beach. holds 87,888 shares. the five-year deal was not
22 | CRAIN’S NEW YORK BUSINESS | June 19, 2017
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Plush times at corner store ines have been forming around the block to get into the “faux- critically acclaimed 2014 London installation, Cornershop. “Half the dega” beneath the Standard hotel along the High Line in the donors to my Kickstarter for Cornershop were from the U.S.,” Sparrow Meatpacking District. That’s because the products on the rap- said, “so I knew I wanted to do a show here.” idly depleting shelves—$50 cans of Campbell’s soup, $65 bottles Sparrow and her crew of 10 produced 9 tons of artwork, which she Lof Corona beer, $60 bags of Doritos—are intricately crafted works of art shipped from England. The Standard provided the venue: its Garden made from stuffed felt and hand-painted by British artist Lucy Sparrow. Room on Little West 12th Street. Installation took five days. The show is “New York has been buying us out of house and home,” said slated to wrap up June 30. To buy the entire store would cost $500,000. Clare Croome, Sparrow’s agent. Reactions from New Yorkers have included unsuspecting customers Sparrow spent nine months creating the installation, a fully immersive dashing in for Advil and shoppers stocking up for a typical night in: beer, re-creation of a 1990s-era Gotham bodega that includes a deli counter, an pizza and a video. One smart aleck even whipped out a handmade felt
IS ice cream freezer, video and magazine racks and even the requisite deli checkbook and cheekily tried to pay with a faux check. “That lady really
ENN cat. Titled 8 Till Late, the exhibition is an American version of Sparrow’s got it,” Croome said. — JEANHEE KIM CK U B
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