20120604-NEWS--0001-NAT-CCI-CN_-- 6/1/2012 7:15 PM Page 1

INSIDE REPORT TOP STORIES THE A TO Z Drink GUIDE TO stink: Big SILICON Soda aims ® ALLEY to fight PAGE 15 Bloomberg

ban VOL. XXVIII, NO. 23 WWW.CRAINSNEWYORK.COM JUNE 4-10, 2012 PRICE: $3.00 PAGE 2 Sugar buzz: Readers weigh in on the idea PAGE 10 IT’S ALL RELATED To your health: Late Trio dominates nightclub owner development in bequeathed bar’s profits to hospitals NYC. Here’s “IF THE CITY DOES WELL, WE ALL DO PAGE 3 how they do it WELL,” said Related Cos. CEO Stephen Tax cuts for wage Ross, depicted here BY DANIEL MASSEY with partners Jeff hikes: A political Blau (left, in illustration) and deal takes shape When Jeff Blau started at The Re- Bruce Beal Jr. (right). lated Cos. in 1989, the first task in Albany Chief Executive Stephen Ross THE INSIDER, PAGE 8 gave the 21-year-old was to buy up auto shops in Willets Point, Queens. Related built stores for Kmart,and the retailer wanted one in the area. Nothing came of it, but 23 years later, Related is about to gain control of Willets Point in a high-stakes gamble to salvage the city’s most complicated real estate development project. To understand why Related tri- umphed over three other bidders there is to understand why it has become the leading developer in a city notoriously difficult to build in: Related thrives on that com- plexity.It is better at navigating the BUSINESS LIVES obstacles—from bargaining with unions to compromising with city GOTHAM GIGS officials—and more willing to take NASCAR’s marketing risks than its rivals. It thinks in chief hits the road P. 25 decades, not quarters. See RELATED on Page 23 ● ANNE FISHER Seed

money for social harperfred entrepreneurs P. 25 ● MOVERS & SHAKERS Tracey Stewart finds her “moment of Zen” P. 26 Big banks losing M&A biz E-tailer ● GAEL GREENE A dream of a wine bar opens P. 27 becomes Bad PR taking its toll as smaller i-banks SHIFTING FEE-SCAPES grab greater share of corporate mergers M&A fee market share retailer INDEX MAJOR BANKS porations on their mergers and ac- NEW YORK, NEW YORK ______6 BY AARON ELSTEIN quisitions. 2007: 70% Bonobos stores VIEWPOINT ______10 Goldman Sachs,Morgan Stan- For all the public relations debacles ley and a handful of big institutions hope to replicate OPINION ______11 suffered by the giants of Wall have dominated this field for SMALL BUSINESS ______12 Street, there never was much evi- decades and are especially eager to online success

REAL ESTATE DEALS ______13 dence that negative PR was actual- protect it, because M&A advisory 2012: 56% ly hurting their business. work means ultraprofitable fees BY ADRIANNE PASQUARELLI CLASSIFIEDS ______20 Until now, that is. with less risk and regulatory scruti- HOT JOBS ______25 Cracks are starting to show in a ny than trading or other Wall BOUTIQUE BANKS Step off the elevator into the new- 2007: 8% THE WEEK AHEAD ______27 highly lucrative franchise for the Street activities. ly expanded Chelsea headquarters big banks: advising blue-chip cor- Yet there are unmistakable and “guideshop” of e-commerce signs that merger-minded corpo- menswear brand Bonobos Inc. and rate leaders are starting to look for you hit a sea of color—magenta advice from anyone but the too- khakis, turquoise short shorts and big-to-fail banks. These banks’ corn-yellow oxfords. When the take of all the fees generated by 2012:17% company debuted five years ago, merger activity in North America most young men wouldn’t have so far this year has dropped to 56% been caught dead in seven-inch from 70% five years ago, according halibut-print swim trunks. Now NEWSPAPER See BIG BANKS on Page 24 Figures YTD. Source: Sanford C. Bernstein & Co. See E-TAIL on Page 23 20120604-NEWS--0002,0003-NAT-CCI-CN_-- 6/1/2012 6:54 PM Page 1

COMMENTARY Beverage makers sour A good cause on sweetened-drink ban in our backyard will be hit hardest because they will Move could cut into their 85% margins have to shift their focus to less lucra- tive products, like energy drinks and n spring, thoughts turn to nature. So it fig- juices, that cost more to produce. And ures that Central Park: An Anthology BY LISA FICKENSCHER they are fighting back the hardest. (Bloomsbury,$16),featuring writers like Su- After news of the mayor’s plan broke It’s no wonder that the business com- last week, the American Beverage As- san Cheever, David Michaelis, Mark Hel- munity has reacted harshly to Mayor sociation ran an ad in The New York prin, Jonathan Safran Foer and Bill Buford, Michael Bloomberg’s proposal to Times. Among its claims is that sugar- and in part benefiting the Central Park Conservan- banish super-size portions of sugary sweetened beverages make up just 7% drinks: Soda is a cash cow like no of the average person’s daily diet. I newscom cy,which runs Manhattan’s 843-acre masterpiece of other in the food-service industry. SUGAR HIGH: Soda provides fat profit margins. The ad comes on the heels of a sev- landscape architecture, should have just hit stores. “The profit margins are very high en-figure campaign launched in the So, too, that on the night of June 6, the conservancy on beverages,”said Alan Vituli,former city in April that touts the industry’s chairman and chief executive of Car- implements his ban, which will pro- diverse product lines and its efforts to hosts its annual said Doug Blon- rols Restaurant Group Inc., which hibit restaurants and other retailers reduce the calorie count of certain Taste of Summer sky, president of owns more than 500 Burger Kings in from selling sugary drinks containing beverages. party at the park’s the conservancy. the U.S., including New York. more than 16 ounces or more than 25 “Offering such a wide range of low- Bethesda Terrace. “But we’d never That is an understatement. calories per eight ounces, consumers and no-calorie options means on aver- A donation of drilled down to A soda priced at $1.49,for example, will have to change their purchasing age there are now 23% fewer calories $400 ($10,000 to find out which costs a retailer approximately 25 cents. habits—and restaurants will, too. per serving,” an ad from April claims. $20,000 for ta- held the donors.” The remaining $1.24 is pure profit. “Over time, if you make consump- A spokesman for the association, bles) will buy you Now they Beverage manufacturers such as tion more difficult,like the tax on cig- Chris Gindlesperger, said the trade grub from 40 city have,and the pic- Pepsi and Coca-Cola vie for exclusive arettes, ultimately consumption will group will be exploring its legal op- restaurants—in- ture is nowhere contracts with restaurant chains like diminish,” said Mr. Vituli. tions to combat the proposed ban, but cluding ‘21,’ Ar- near as pretty as Burger King and Applebee’s, and of- he did not elaborate. mani Ristorante, MICHAEL the park on a June fer financial incentives. Soda’s shrinking sales Soda may be the biggest target of the Benoit, Circo and GROSS day. On average, “We spend months and months In fact, soda sales have been declin- ban,but sweetened teas are also includ- Le Cirque, Ser- only 17% of park- evaluating the contracts to see which ing for more than a decade, while sales ed. Honest Tea, for example, which is endipity, SD26 side apartments one will give us the most,” said Zane of bottled water and energy drinks have considered one of the healthier brands and Swifty’s— have chipped in Tankel, chief executive of Apple- been increasing, partly in response to because of its low sugar content and or- entrée to a silent auction and to maintain their backyard Metro Inc.,which operates more than public health campaigns aimed at edu- ganic ingredients, would not be able to dancing under the stars. since 2010, according to Ms. 30 Applebee’s in the city. cating consumers about good nutri- sell its top product, Honey Green Tea, Less visibly, the conser- Coppersmith. To increase Applebee’s has a nationwide con- tion.Restaurants will simply shift their in New York City if the ban is passed. vancy has launched a program that number, the conservancy tract with Pepsi, which provides the promotions to encourage customers to At 70 calories and 16.9 ounces, the that hits me where I live, on began recruiting those ambas- chain with 20-ounce glasses embla- buy larger cups of the legal alternatives: product exceeds the ban’s limits by 20 the park’s periphery, which sadors to advocate for the park zoned with the Pepsi logo. At New The mayor’s proposal exempts diet calories and 0.9 ounces. has lately renewed its claim to and started celebrating build- York Applebee’s, a 20-ounce glass sodas, fruit juices, dairy-based drinks “What if San Francisco comes up be the city’s hottest residential ings like Hampshire House, with free refills goes for $2.99. and alcoholic beverages. with a rule that’s not the same as New zone, home of Dmitry Ry- the San Remo and 1040 and “There is no doubt that the mar- “If the ban goes into effect, we’ll York’s?” asked Honest Tea founder bolovlev’s (or is it his daugh- 1150 Fifth, where at least half gins on soft drinks are greater than sell a lot of beverages with synthetic Seth Goldman.“We would have to go ter’s?) $88 million spread at 15 the apartments have con- those on food and even alcohol,” said sweeteners,and our water sales will go through all sorts of gyrations for an ar- Central Park West, Steve tributed to the conservancy. Mr. Tankel. up,” said Mr. Vituli. bitrary number that is not based on Wynn’s $70 million duplex at The conservancy also re- Experts predict that if the mayor The big beverage manufacturers any rational reason.” Ⅲ the Ritz-Carlton and com- cruits developers and busi- poser Igor Krutoy’s $48 mil- nesses operating near the lion condo at the Plaza Hotel. park. So Arthur and Will Their backyard, Zeckendorf, de- Central Park, ac- Central Park velopers of 15 For-profit colleges tested counts for their Central Park premium price ‘elevates West, bought tags. Small won- the value each initial pur- others, say some for-profit advocates. Also, in an economy in which even der, then, that four chaser there a A new law could take They point to government data that students from elite schools can’t find years ago, the con- of their one-year conser- show graduation rates and student jobs, it’s more likely that students will servancy commis- apartments’ vancy mem- away tuition loans— loan repayment rates at some New default. sioned a survey of bership, but only even at career schools York for-profit schools are compara- “What this will do is throw stu- the neighbors’ 16 of 201 house- ble to those at traditional public and dents out of programs,” said David contributions to holds activated with excellent grades nonprofit colleges. Rhodes, president of the School of the park’s upkeep. them. Ms. Cop- The new regulations could slice Visual Arts. The result was what Terri persmith doesn’t buy the argu- into for-profits’ eligibility for federal More than 55,000 students attend Coppersmith, vice president ment that for many, it’s their BY JUDITH MESSINA tuition loans. If former students’ debt for-profit colleges in New York state, for development and visitor second, third or fourth home. payments are too high relative to their where enrollment has grown 19% be- experience, dubbed its Am- “Whether they live here or The for-profit college sector has long incomes or if they don’t pay back their tween 2008 and 2011, compared with bassador Program, which not, the park elevates the val- been seen as the ugly duckling of the federal loans on time, the federal gov- a 7.6% overall growth in the state’s honors parkside buildings ue of their apartments,” she education business, under fire in re- ernment could take away schools’ eli- college population. Many schools that cough up the most cash reasoned. “They need us.” cent years from media and regulators gibility, one program at a time. The serve a population of minority, low- for upkeep. The same goes for all the even as it has attracted a rapidly grow- regulations may especially hurt pro- income and older students who would According to the conser- trophy buildings ringing the ing share of American higher- grams such as culinary arts and fash- likely never go to college if not for the vancy, 550,000 people live park. “At your home in the education students. ion, whose graduates start by earning flexible programs, access to govern- within a 10-minute walk of country,you pay for a garden- Some of the criticism is warranted: low salaries. See FOR-PROFIT on Page 9 the park, 65% of the 40 mil- er,” one ambassador tells the Certainly, there are fly-by-night and lion or so bodies who enter neighbors he targets. “Dou- other for-profit schools that aggres- annually are regulars (pre- ble that and give it to the con- sively recruit unprepared students and COMPARE AND CONTRAST: ENROLLMENTS sumably neighbors) who servancy. We take better care load them up with debt, but never get 2008 2011 % change come once a week or more, of it, and it’s a better asset.” them across the finish line or into a 31% use it every day, and yet Writing this persuaded well-paying job. For-profit colleges 46,400 55,100 +18.9% only 55,000 generous souls me to buy a membership. But a new federal law,scheduled to Private nonprofits 512,100 541,200 +5.7% help pay the 85% of its budg- How about you? take effect in July, may do some real et that is raised privately. damage to the entire sector by target- Public colleges 683,000 739,000 +8.2% “We’d always targeted LISTEN to a discussion at ing the problems of some players but Note: Data are rounded. Source: NYS Department of Education neighborhood buildings,” CrainsNewYork.com/podcasts unfairly burdening the operations of

2 | Crain’s New York Business | June 4, 2012 20120604-NEWS--0002,0003-NAT-CCI-CN_-- 6/1/2012 6:55 PM Page 2

IN BRIEF FACEBOOK’S STOCK ISN’T DRAWING CROWDS ANYMORE, BUT ITS REAL ESTATE BROKERS still are, as they scour the city to site an I’ll drink to that engineering office of 50,000 to 100,000 square feet. Sources say the social-media giant has shown a keen interest in the former New York Hospitals to get profits from nightclub, Times building at 229 W. 43rd St.Times Square is not a favored haven for tech firms, but per late owner Steven Greenberg’s will the owners of 12 upper floors of the 15-story building have added touches to earn points with the tech crowd that could compensate for BY LISA FICKENSCHER the midtown location.There is now a basketball court where the publisher’s dining room once Who would have thought that sipping pricey cocktails at 230 Fifth, the sprawling was, and the 12th-floor terrace now has rooftop bar in the Flatiron district where throngs of New Yorkers and tourists min- Astroturf for a whimsical feel. gle,could be good for the city’s hospitals? Yet that’s exactly what the late Steven Green- berg,whose estate owns 230 Fifth now,stipulated in his will.The bar’s profits will flow FOUR CITY SCIENTISTS WILL EACH RECEIVE into a charitable trust structured to provide funding to medical institutions in the city $250,000 TO PUSH BIOMEDICAL PROJECTS such as Memorial Sloan-Kettering, New York-Presbyterian and Lenox Hill. toward their final stages of research.The In February, Mr. Greenberg, 68, lost his battle with lymphoma. Before he died, he Partnership for New York City doled out the said he wanted to give back to the doctors and hospitals that helped him and his fam- BioAccelerate NYC prizes.This year’s winners ily over the years. Funding of the trust will begin later this year when Mr. Greenberg’s include an adapted gene that suppresses extensive Art Deco collection is auctioned off at either Sotheby’s or Christie’s. After aggressive cancer tumors, a new male fertility that, 230 Fifth’s profits will be folded into the trust. diagnostic test, a treatment to reduce negative The bequests should be significant, considering that the bar attracted 1.1 million side effects of cancer drugs and an implant to customers last year and generates more than $20 million in revenue, 90% of which preserve cartilage in arthritic joints. Investors comes from the sale of alcohol.The co-executors of the will—Mr. Greenberg’s broth- call the phase between initial research and a See HOSPITALS on Page 14 biomedical device’s move into development the “valley of death.”Traditional grants dry up, and projects remain too unproven for venture capitalists.The prizes aim to back promising scientists and grow the city’s biotech sector. Ⅲ BY THE NUMBERS

Weekly shift of the city’s economy

GLOBAL WILT Last week, America joined China,  Brazil, South Korea, India and, of course, Europe in reporting unexpectedly weak economic data. And hopes were not high to begin with. -41% 3.2B 11.6% DROP IN APRIL AVG. “LIKES” RISE IN construction and comments Broadway starts for metro made on revenues during area, to $4.19B, Facebook per day May, vs. vs. a year ago. during 1Q 2012. a year ago. Source: McGraw- Source: Source: The Hill Construction Facebook Inc. Broadway League

ROAD TRIP Just in time for summer vacation, NYC’s gas prices are easing a bit.

Price per gallon $3.87 $3.90 $3.59 $3.77 $3.69 $3.33

12/11 1/12 2/12 3/12 4/12 5/12 Source: Energy Information Administration

ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY

CORRECTIONS Charles Feit of OnForce Solar previously founded a company to deploy currency-trading software systems for the banking industry. He moved OnForce Solar into regular office space in 2010. Customers of solar energy systems can receive a roughly 25% grant from NYSERDA. Those facts were misstated in the May 28 article “Solar energy systems shine with 1-stop shop.” Cushman & Wakefield Inc. hired more than 1,900 people worldwide last year. The number was misstated in the May 28 article “Brokers battle for share.” WHERE THERE’S A WILL: Co-executor Bonnie Riggs works for NPD Group. The firm’s name was Michael Scharf (left) and bar managers Sal misstated in the May 28 article “Salad days: Chop’t finds green.” Rozenberg (center) and John Benedetti vol. xxviii, no. 23, june 4, 2012—Crain’s New York Business (issn 8756- (right) are continuing Steven Greenberg’s 789x) is published weekly, except for double issues the weeks of July legacy at the rooftop veunue 230 Fifth. Fourth, Labor Day and Christmas, by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals postage paid at New York, N.Y., and additional mailing offices. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (877) 824-9379. Fax (313) 446-6777.$3.00 a copy, $99.95 one year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved. buck ennis

June 4, 2012 | Crain’s New York Business | 3 20120604-NEWS--0004-NAT-CCI-CN_-- 6/1/2012 6:56 PM Page 1

Jeffrey Marcus, Esq. Attorney at Law IN THE MARKETS by Aaron Elstein

Dedicated Client Service Teams Big Bank Products, Small Bank Attention newscom Serving Businesses since 1929 Does Abacus indictment add up? It’s time you switched to Sterling. Call us today to learn more or visit snb.com/stories to read about Jeffrey’s story. ow many of the mort- approvingly said that “the high vol- gages written by Abacus ume of loans reflects a favorable re- Federal Savings Bank dur- sponse to community credit needs.”) ing the peak of the hous- Then the world changed. The Hing bubble were fraudulent? The government got pickier about which snb.com 212-757-1100 correct answer looks to be: a whole mortgages it would buy after na- bunch of them. tionalizing Fannie Mae. In particu- Abacus, which has served New lar,it demanded that Abacus require York’s Chinese immigrant commu- borrowers to produce tax returns in nity since 1984, made big news last order to qualify for a mortgage. week when the Manhattan district “Bank management advocated attorney’s office filed fraud and grand vigorously for an exemption,”accord- larceny charges against the bank and ing to the indictment,because execu- 11 former employees, including the tives knew that some customers chief credit officer.Eight others were didn’t file accurate tax returns. But charged and pleaded guilty. Abacus’ pleas were denied. After According to Manhattan Dis- tougher standards were put into trict Attorney Cyrus Vance Jr., Abacus place, the bank’s loan-origination employees allegedly helped borrow- volume promptly plunged by more ers fib on their mortgage applica- than 90%, according to the indict- tions by reporting inflated incomes ment, suggesting a lot of clients or job titles—the very shenanigans wouldn’t produce accurate tax returns that mortgage brokers and lenders or didn’t have them. (Demand for across the country are accused of mortgages also fell when the housing participating in before the bubble bubble popped around that time.) burst. Like most lenders, Abacus Interestingly, last week’s indict- then funneled those mortgages to ment represents the second time that the government,selling “thousands” junior employees have seriously hurt of fraudulent loans worth “hundreds Abacus, which has seven branches of millions” to guarantor Fannie Mae and $250 million in assets. Back in in a scheme that lasted between 2003, it was nearly destroyed by an 2005 and 2010, according to the in- old-fashioned run on the bank. is pleased to announce dictment.A spokesman for the bank Problems began when at least one noted the indictment contains only employee at a Chinatown branch 49 examples of wrongdoing. paid out higher rates on certificates In a statement, the bank said it of deposit than the bank was official- would vigorously defend itself: “Se- ly offering, according to an account nior executives at the bank took the in the risk-management publication immediate, decisive action that initi- RMA Journal. When customers got ated this investigation,and there is no wind that the scheme was coming to evidence that any senior executive at an end, they began lining up outside has leased 2,005 sq.ft. the bank engaged in illegal behavior.” the branch at 3 a.m. and yanked out The indictment doesn’t say ex- $30 million.That amount was equal at 69 Main Street in Westport, CT actly how many Abacus loans were to all of the bank’s capital at the time, fraudulent,but it appears to be a high according to a report in Crain’s. percentage.Here’s the math:During In that article,the bank’s founder Allen Edmonds was represented by the dizziest years of the housing and chairman, Thomas Sung, de- bubble, between 2006 and 2008, scribed the vital role Abacus played Frank DiMucci of DiMucci Partners Abacus wrote at least $380 million in its community: “We nursed [cus- worth of mortgages, according to a tomers] from being illegal immi- 2009 report from the Office of grants to being legal immigrants to Thrift Supervision. More than 75% being prosperous people to being of those loans went to low- and homebuyers.” 100% commission was paid on lease signing moderate-income borrowers, which In its statement after last week’s are presumably the ones most likely indictment,Abacus offered a less stir- to need a little “help” qualifying for a ring assessment: “[The] only victim www.malkinproperties.com mortgage. (Regulators at the time in this matter is the bank itself.” Ⅲ

For more information please contact: Fred C. Posniak, Senior Vice President DECLINE IN THE S&P 500 since April 2—the 212-850-2618 [email protected] halfway mark to an official bear market. For those 10% keeping score, the stock index fell 6% last spring and shed 12% in the spring of 2010.

4 | Crain’s New York Business | June 4, 2012 CN015184.qxp 5/25/2012 11:44 AM Page 1 sunshine a business travel essential A well-lit environment makes people happier, healthier and more productive. That’s why Element hotels fl ood guestrooms and public spaces in daylight. When the sun goes down, Relax evening wine reception and our signature ® Heavenly Bed await. SpaceDiscover the to essentials live of balancedyour lifetravel. Element New York Times Square West Book now for 20% off elementhotels.com

©2012 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. Preferred Guest, SPG, Element and their logos are the trademarks of Starwood Hotels & Resorts Worldwide, Inc., or its affi liates. For full terms of this offer, please visit elementhotels.com 20120604-NEWS--0006-NAT-CCI-CN_-- 6/1/2012 7:00 PM Page 1

CRAIN’S Business Breakfast Forum: MEET Secretary Shaun Donovan NEW YORK,NEW YORK U.S. Housing and Urban edited by Valerie Block Development

Crain’s New York Business Join for a EVENT DETAILS: discussion with Secretary Shaun DATE: Donovan, U.S. Housing and Urban Tuesday Houston bio rights go to HarperCollins Development. Secretary Donovan will June 5, 2012 Whitney Houston discuss the Obama administration’s issy Houston, ’s gospel-singer mom, has sold a book about her late efforts to manage the foreclosure PLACE: daughter to HarperCollins, according to a person with knowledge of Sheraton New York crisis, the plans to revive the housing the deal. Ms. Houston, who is 78, met with publishers in New Hotel and Towers C market, and the outlook for the York in April to pitch them on the project, according to a report in Metropolitan West and The New York Times.The book is meant to set the federal funding of New York housing Central Park East/West programs. He will be questioned by record straight about her daughter and tell both Crain’s assistant managing editor TIME: the good and the bad, she told publishers. ¶ Erik Engquist and Greg David, Crain's Networking Breakfast: Whitney Houston had a troubled marriage 8:00-8:30AM columnist and author of the new and a long history of drug abuse before she Modern New York: The Life and Program: book 8:30-9:30AM accidentally drowned in a hotel bathtub the Economics of a City. weekend of the Grammy Awards, in February. ¶ Steve Fisher, the Los Angeles-based agent representing Cissy Houston, concluded the deal with HarperCollins in recent weeks. LAST CHANCE! ¶ Terms of the sale could not be learned, REGISTER TODAY: though insiders had expected the price www.crainsnewyork.com/events-sdonovan tag to reach seven figures if Ms. Houston was willing to be frank about Or call the Events Hotline: (212) 210-0739. her daughter’s troubles. ¶ Neither a spokeswoman at HarperCollins nor SPONSORED BY: Mr. Fisher responded to requests for

comment. —matthew flamm mcmullan patrick

mine,” said Mr. Hicks, who got to fashion choices,” said Gwen DeVoe, A pint-size know the guitarist through a who founded FFFW, noting that supporting role Connecticut restaurant owned by as many as 600 people are the rock star’s niece and nephew expected for the shows. “It’s a way Jones Wood Foundry, a laid-back where Mr. Hicks is a consulting to say to regular fashion, we can British pub on the Upper East chef. On busy nights, Mr. do this, too; I don’t know why Side, has attracted some star Richards and his family are we’ve been excluded.” power in the short 15 months it’s ushered to a chef ’s table in the Though most of the runway kitchen, where he’s offered privacy shows cost $40 to attend, the and quick service. Bloomingdale’s catwalk is free and —lisa fickenscher open to the public. A show featuring independent plus-size designers and another Fashion thrown highlighting the curvy wares of a curve or two retailers and boutiques will be held at the financial district’s Waif-like models are so last Broad Street Ballroom. season: Full Figured Fashion In addition, FFFW will offer a Week kicks off June 13. And it’s new educational series to teach been open. Far from the lights of expanding its realm. For the first existing and would-be Broadway, it’s been discovered by time, the 4-year-old, four-day entrepreneurs about retail the producers of the smash British event will feature a runway show businesses and social-media hit One Man,Two Guvnors—up at Bloomingdale’s that includes blogging in the full-figure for seven Tony Awards—who popular brands like Michael Kors, category. Sponsors for the events held their pre-opening party at Eli Tahari and Eileen Fisher. include plus-size retailers Sonsi the bar and consider the gastropub “The mission is to encourage and Ashley Stewart. the show’s official restaurant. plus-size women to look for more —adrianne pasquarelli “I know for sure that people are coming in because of the show,” said co-owner and chef Jason BAWDY B’WAY Hicks, who has added food featured in the play, like haddock TIRED OF MOVIE musicals? Try and mushy peas, to the menu. Spiegelworld’s new show, “We discovered Jones Wood Empire. The kinky circus Foundry when we were looking cabaret that originated down- for the ideal spot for a launch town pitched its 440-seat event,” said producer Bob Boyett. tent in the heart of Broadway “We knew we wanted someplace for a summer run. Pairing fun, irreverent and British.They sexy skits (don’t ask what the helped us throw a great event, and emcees do with a banana) we discovered we are a good fit.” and thrilling acrobatics, the Show people aren’t the only 90-minute show is anything notables dropping in. Rolling but the same old same old. Stones guitarist Keith Richards is a

regular as well. “He’s a mate of kaine thom

6 | Crain’s New York Business | June 4, 2012 TECHNOLOGY DESIGNED TO HELP YOU SPEED PAST THE COMPETITION. Keep your business moving forward with a 4G LTE device powered by America’s Fastest 4G Network. Because the small business with the best technology rules.

NEW! Lucid™ by LG Powerful yet easy-to-use Android™ smartphone $7999 $129.99 2-yr. price – $50 mail-in rebate debit card. New 2-yr. activation and data pak required.

NEW! Samsung Galaxy Tab™ 7.7 Sleek, 12-ounce 4G LTE Android™ tablet

NEW! VERIZON JETPACK™ Global capability to connect up to 5 Wi-Fi–enabled devices $4999 $99.99 2-yr. price – $50 mail-in rebate debit card. Requires new 2-yr. activation on a 4G Mobile Broadband plan.

BE MORE PRODUCTIVE WITH POWERFUL BUSINESS APPS.

QuickOffice Pro MightyMeeting Create, edit, access and share all your Microsoft Office Manage all your PowerPoint presentations and documents, spreadsheets and presentations on-the-go. join web meetings straight from your smartphone.

Box Lookout Mobile Security Store, share, view and upload important files from any device. Stop malware, spyware and data loss. Easily backup Easily sync your desktop files directly to Box. and restore critical data plus recover lost phones with Find My Phone.

VERIZON DISCOUNTS 1.800.VZW.4BIZ(4249) Visit any Verizon Wireless store today to find out about monthly access discounts for your business, starting at 8%. verizonwireless.com/smallbusiness

Activation/upgrade fee/line: Up to $35. IMPORTANT CONSUMER INFORMATION: Subject to Cust. Agmt, Calling Plan, rebate form & credit approval. Up to $175 ($350 for advanced devices) early termination fee/line & add’l charges apply to device capabilities. Offers & coverage, varying by svc, not available everywhere; see vzw.com. Limited-time offer. Restocking fee may apply. Rebate debit card takes up to 6 weeks & expires in 12 months. While supplies last. LTE is a trademark of ETSI. MiFi is a trademark of Novatel Wireless, Inc. DROID is a trademark of Lucasfilm Ltd. and its related companies. Used under license. 4G LTE is available in more than 200 cities in the U.S. © 2012 Verizon Wireless. E9108 20120604-NEWS--0008-NAT-CCI-CN_-- 6/1/2012 3:27 PM Page 1

science,” said one source. “It’s political posturing.” Each measure has broad public YASSKY FUELS TALK of another run THE INSIDER support: 78% of New York voters THE TAXI OF TOMORROW. Outer-borough cabs. A fare hike. (including 58% of Republicans) Even though David Yassky’s initiatives as Taxi and by Jeremy Smerd and Shane Dixon Kavanaugh support a minimum-wage hike, and Limousine Commission chief have not been universally 65% support a business tax package popular, they have raised his profile, fueling patter that he (including 64% of Democrats), will run again for city comptroller. according to a recent Siena “He’s gotten a lot of publicity out of the TLC, that’s for Research Institute poll. sure,” said Erhan Tuncel, a taxi driver who has been a newscom Pushing through these popular vocal opponent of Mr. Yassky’s outer-borough taxi plan, David Yassky proposals before adjourning this which gave the commissioner reason to visit nearly all 59 Pessimism may month would likely give the community boards. majority party of each chamber an The plan pleased Dominican livery drivers in upper Manhattan and the edge going into the fall elections, Bronx, and aligned Mr. Yassky with influential politicians like Bronx Borough signal Albany deal insiders say.That could benefit Mr. President Ruben Diaz Jr. and Bronx Assemblyman Carl Heastie. Cuomo, who has done well with a “He has contributed with his leadership to make transportation in the city Democratic Assembly and a safer and more reliable,” said Cira Angles, a spokeswoman for the Livery enate Majority Leader Dean Skelos has repeatedly Republican Senate. Any bargain, however, depends Base Owners Association. called the Assembly’s plan to raise the state’s on Mr. Cuomo spending political But the plan enraged taxi medallion owners. “I don’t think the chairman minimum hourly wage by $1.25 per hour, to $8.50, a capital. He may not be inclined to has been particularly cooperative or attentive to our positions,” said a yellow- “job killer.” Meanwhile, Assembly Speaker Sheldon spend much. After all, he has taxi executive. “I tend to doubt he will raise money from us.” Silver has said the state cannot afford the Senate’s several major accomplishments No matter. Mr. Yassky is a prodigious fundraiser, having collected nearly under his belt already this year. But $3 million for his 2009 city comptroller bid and $1.5 million for his 2006 Spackage of tax cuts and credits for manufacturers, craft the governor also has a history of congressional race. He lost to John Liu and Yvette Clarke, respectively. brewers and small businesses. lowering expectations. A taxi source says the fare hike is intended to curry favor with the New York Gov. Andrew Cuomo insists there’s little “I’d be surprised if he doesn’t Taxi Workers Alliance. “Yassky believes they are the ticket to getting union he can do on either issue. “I don’t believe I swoop in before the end of the support during his campaign,” the source said. session,” an insider said. Bhairavi Desai, executive director of the alliance, said her organization can convince members of the Assembly does not endorse candidates or mobilize its 15,000 members for campaigns. for a broad business tax-cut package,” The Merryl Tisch “We’re not in it to make kings out of the politicians,” she said. he said. “I don’t believe I can The next mayor is unlikely to keep Mr. Yassky. “That’s always the game for convince members of the trial balloon a guy like him: what is next, where is his interest and where are his opportunities,” said one insider. “He’s certainly keeping his political Senate on the inverse.” Insiders viewed last week’s Wall relationships alive.” Despite the Street Journal story about a An insider said Mr. Yassky has been attending political events, like naysaying, insiders see potential Merryl Tisch mayoral fundraisers. “They are not the type of events attended by a commissioner,” candidacy as a trial balloon, but not another insider said, “unless they have political ambition.” the outlines of a deal one that is likely to carry the state that would pass both Board of Regents chairwoman into bills and lead to next year’s race. victories for each of the “This clearly was an attempt by A second consultant said it brothers-in-law, everyone would.” her and her people to float her could also have been an effort by But the tobacco wars have “three men in a room.” candidacy and see if it takes off,” others to nudge Ms.Tisch to run. receded since the tumultuous “This isn’t rocket one political consultant said. “It’s a consultant business model period surrounding the industry’s newscom to recruit deep-pocketed huge legal settlement, when an candidates,” the insider said. “So airplane carried a banner reading maybe this isn’t from her; it’s from “Larry Tisch sells cancer sticks” over people who she might work with Long Island beaches. thinking there’s a lot of money to The second consultant said, be made.” “[Merryl Tisch] has no personal But the liability. She’s accomplished, she’s a Discover Success. first source, policy person, she’s charming. It’s who could family money. I don’t think that’s We Measure Success in Client Satisfaction. end up on the issue.” the other side of a Tisch No license? campaign, No problem forecast little chance Unlicensed hauling of electronic Merryl Tisch of a Tisch waste is a growing problem,

Random House, Inc. is the world’s largest trade-book publisher, long committed buck ennis run: “At the according to the Business Integrity end of the Commission, the city agency that to publishing the best books by authors in the U.S. and worldwide. day, Merryl Tisch will not be a polices industries formerly candidate for mayor of the city of infiltrated by organized crime. Assignment: 361,044 SF at 1745 Broadway New York. She does not want to But the commission does not put herself through the churn of a automatically issue fines, which can Team: Richard Bernstein, Adam Ardise and Jared Thal campaign. She does not want to be as much as $10,000 per day. open up [the subject of ] tobacco Unlicensed haulers will be “given money, business dealings, all of her an opportunity to come into family connections. It’s all fair compliance,” it said. game if she runs.” That’s a blow to licensed carters, Discover Expertise in Tenant Representation. The Tisch family fortune comes who, by the way, are also losing in part from Newport cigarettes, money to thieves who scoop up Discover Cassidy Turley. the longtime favorite brand of valuable cardboard left at curbside. black smokers. Although the It’s costing some carters more than Tisches spun off Newport maker $1 million annually, and has hurt the Peter Hennessy Lorillard from the Loews Corp. in city’s own cardboard processor, too. President, New York Tri-State Region 2008, and Ms.Tisch’s career has Several arrests have been made 212.318.9790 been in education, the first this spring, but haulers say the [email protected] consultant said that if she runs, “not misdemeanor penalties provide only will she get dragged through little deterrence when cardboard www.cassidyturley.com the mud, her husband, her prices rise, as they have recently. Ⅲ

For daily political and government news, subscribe to Tenant Representation / Project Leasing / Project & Development Services / Property Management / Corporate Services / Capital Markets CRAIN’S INSIDER @ www.crainsnewyork.com/insider

8 | Crain’s New York Business | June 4, 2012 20120604-NEWS--0009-NAT-CCI-CN_-- 6/1/2012 1:01 PM Page 1

For-profit colleges tested FAMILY-RUN SCHOOLS

Continued from Page 2 STAY INDEPENDENT ment financial aid and those ubiquitous sub- and had federal student loan default rates three STILL OWNED AND OPERATED by their founding way ads promising a foothold on the career times that of public and private not-for- families, a handful of New York for-profit schools ladder. profit institutions. have bucked the consolidation trend in the for- In New York, for-profit schools on average Those statistics were the impetus for the have better graduation rates—53% after six new national regulations, which will affect profit education business. Tracing their origins back years—than CUNY institutions’ 44.4% and, for-profits, from homegrown colleges to fly- as far as the 1930s, they look and feel much like in some cases, lower default rates than the av- by-night career academies and huge, publicly any other urban college—and some have national erage college in the state. traded institutions, such as the University of reputations. In 2009, the default rate on federal student Phoenix and DeVry University,that today ac- The best known in New York City is probably loans at all New York institutions was 7.1%, count for 60% of the for-profit student pop- the School of Visual Arts. Considered one of while the national average was 8.8%, up from ulation and suck up billions of dollars in fed- the nation’s leading art schools, it was founded 6.7% in 2007. At for-profits nationally,the av- eral student aid. in 1947 as the Cartoonists and Illustrators erage rate is much higher, 15%. But in New In New York,scrutiny by the state Depart- School. York there’s a wide variation among for- ment of Education helped lead to the closure Run today by the founder’s son, David Rhodes,

profits, from 4% at the School of Visual Arts of several for-profit institutions over the past SVA confers baccalaureate, master’s and buck ennis and 5.9% at fashion-merchandising school five years, including Interboro Institute, a doctoral degrees, and occupies 900,000 square WELCOME SIGHT: David Rhodes said SVA realized a LIM College to more than 12% at Briarcliffe subsidiary of EVCI Career Colleges; feet in the East and West 20s, including dormitories 6% surplus on revenues of about $100 million last year. College, a division of Career Education Corp. Katharine Gibbs, a division of Career for more than 1,100 students, 16% of them that offers programs such as accounting and Education Corp.;and the Taylor Business In- international. While all SVA students major in some form of art, such as film, fine arts or graphic paralegal studies, according to the U.S. De- stitute. design, they still have to take traditional science and humanities courses to graduate. partment of Education. Similarly, Monroe College, Berkeley College and LIM College have residence halls for students, Moreover, almost all of the for-profit Service to students and Monroe and Berkeley field sports teams that play in local conferences. “We’re very much schools start with a far different population of The latest crackdown involves new “gainful following a traditional model,” said Dario Cortes, president of Berkeley College and a former provost students, many of whom are older and don’t employment” rules. The idea is that the gov- of the Fashion Institute of Technology. “We’ve delegated governance to deans, department chairs have co-signing or supportive parents. ernment needs to step into the fast-growing and chief academic officers.” “Many students are first generation or mar- sector to ensure that schools give good value by So, do these schools actually make a profit? Yes, although most of it, their leaders say, goes ried with children,” said Mark Schneider, a vice enabling students to get jobs and pay off their back into infrastructure, technology and other needs. president at education and health care think loans. Mr. Cortes said Berkeley College, which specializes in liberal arts and professional studies such tank American Institutes for Research and a “It’s in everybody’s interest to try to iden- as criminal justice and health services, annually puts millions of dollars into student aid. former commissioner of the U.S. Department tify those for-profits that are not serving SVA’s Mr. Rhodes said he has a surplus target of 5% and last year realized 6% on revenues of of Education’s National Center for Education students well and have a mechanism to in- about $100 million. Statistics. “They have more problems than 18- centivize them to make changes,” said Jose year-old kids going to Stony Brook.” Cruz, vice president of think tank Education The chief advantage of being a proprietary school has been the ability to respond rapidly to Trust. market demand. As the Internet took off in the mid-1990s, SVA was one of the first schools in Going back to school Advocates for the proprietary schools point New York to start offering a digital media program. Take Monroe College, a liberal arts col- out, however, that the new rules are targeting On the other hand, the schools get little if any public money other than student loans, and lege with a graduate school and career- a highly diverse business. because of their tax status have limited ability to raise the tens of millions of philanthropic dollars oriented specialties like accounting and hos- Proprietary schools have been around for that not-for-profit institutions use to underwrite buildings, scholarships and research. pitality management, which has 7,100 the better part of a century,their purpose being “It is not so clear anymore that nimbleness alone is sufficient to justify the [for-profit] graduate and undergraduate students and not only to teach but to make money for their status,” Mr. Rhodes said. had a default rate of 5.6% in 2009. Angie owners.In 2005,they enrolled 5% of all college —JUDITH MESSINA Medina, a 33-year-old mother of two young students; by 2010, they enrolled nearly double boys, is a typical student. that, or 9.1%. Most of that growth took place The Bronx native quit high school in 1997 at behemoths such as the University of port other kinds of colleges. Under the new and retention rates and student-debt levels on in October of her senior year because of fami- Phoenix, which has more than 400,000 stu- rules, that aid could be at risk. their websites—although it can be difficult to ly issues. She subsequently got a GED and dents in classrooms and online. Better, the colleges say, to risk-adjust the find them. worked her way up from home health care aide Locally, proprietary schools range from formula for the population they serve, and The proprietary colleges may be only the to home health care coordinator. Laid off in branches of big education companies to family- measure loan payments 10 years out rather beginning. With higher education in general 2009, she decided that it was time to go back owned and -operated institutions.They run the than starting six months after graduation, or under fire for skyrocketing tuitions, increas- to school. She considered CUNY but found same gauntlet of state audits and approvals as look at retention, graduation or placement ing loan defaults, worsening graduation rates Monroe more welcoming, she said. traditional schools and, in some cases, are also rates. and jobless graduates, there are calls to apply “Even though I had all this experience, I accredited by the Middle States Commission Some are doubling down on efforts to help gainful employment measures to all colleges didn’t have a degree,” said Ms. Medina, who on Higher Education,which vets colleges such their students graduate and manage their and universities. Some states are considering expects to receive a B.S. in criminal justice as Columbia, Baruch and Juilliard. Some re- debt. Berkeley College runs a summer pro- performance-based funding for public insti- from Monroe College this summer and hopes semble traditional colleges in all but their tax gram for incoming freshmen in math, read- tutions. to start law school in 2013. status, with sports teams, residence halls and ing and writing and requires students to take “All institutions from all sectors need to To be sure, for-profit higher education has active alumni groups. a financial literacy course. Monroe also runs improve graduation rates and be more afford- its share—and maybe more than its share—of Still, they are heavily dependent on attract- a financial literacy program and is developing able,” said Mr. Cruz. “Institutions in the poorly performing institutions. In 2008, for- ing students eligible for state and federal tu- an undergraduate peer program to train busi- public and nonprofit sectors should be doing profit schools nationwide graduated an aver- ition aid, since they have little ability to raise ness and accounting majors to counsel other a much better job than they currently are age of only 22% of their students in six years the public and philanthropic dollars that sup- students. Schools are disclosing graduation doing.” Ⅲ

COMPARE AND CONTRAST: TUITIONS, GRADUATION RATES AND LOAN DEFAULT RATES Key facts for several NYC for-profit colleges and two comparable schools in the City University of New York system

Founded 1931 College of Staten Island (CUNY) Founded 1939 Founded 1933 SCHOOL OF Focus Liberal arts, (CUNY) Founded 1964 Focus Fashion Focus Business and VISUAL ARTS criminal justice, Founded 1976 Focus Liberal arts, Enrollment 1,600 accounting, health, Founded 1947 interior design and Focus Liberal arts, criminal justice criminal justice, hospitality, Focus Digital and health services Annual tuition $22,225 IT and education professional studies Enrollment 14,800 visual arts Enrollment 5,360 Graduation rate 53% Enrollment 7,140 Enrollment 14,200 Annual tuition $5,459 Enrollment 4,300 Annual tuition $21,750 Loan default rate 5.9% Annual tuition $12,440 Annual tuition $5,508 Graduation rate 40% Annual tuition $29,550 Graduation rate 31% Graduation rate 72% Graduation rate 48% Loan default rate 3.1% Graduation rate 69% Loan default rate 9.2% Loan default rate 6.6% Loan default rate 5.6% Loan default rate 4.0% Graduation rate is for 2010 and refers to the percentage of first-time students who earned a bachelor’s degree within six years at the school of entry. Federal student loan default rate is for 2009. Enrollment and graduation data are rounded. Sources: U.S. Department of Education, NYS Department of Education

June 4, 2012 | Crain’s New York Business | 9 20120604-NEWS--0010-NAT-CCI-CN_-- 6/1/2012 1:03 PM Page 1

VIEWPOINT Save Hudson River Park editor in chief Rance Crain publisher, vp Jill R. Kaplan

udson River Park is on its way to 40, said in a Crain’s story by Senior Reporter Theresa EDITORIAL becoming one of the city’s top Agovino, “I don’t think the current legislation is outdated editor Glenn Coleman amenities. It’s also on its way to falling by any means.” deputy managing editors Valerie Block, Erik Ipsen into said river. An ambitious project We beg to differ. So does Assemblyman Richard assistant managing editors Erik Engquist, when it began in the 1990s, the 550- Gottfried, even though he put the prohibitions on hotels and Jeremy Smerd senior producer, news Elisabeth Butler Cordova acre park and estuarine sanctuary has residences into the original law. Mr. Gottfried has gotten news producer Lauren Elkies been even more difficult and costly to past the misplaced fear that park residents and hotel guests contributing editor Elaine Pofeldt maintain than expected. Its massive piers have been whittled would effectively privatize the space. “The extraordinary columnists Greg David, Michael Gross, away by erosion and microorganisms; every day they go capital need is crippling the park,” he wrote last week in The Alair Townsend H pulse editor Barbara Benson unrepaired brings them closer to ruin. Villager. “That’s why we have to look at alternatives.” senior reporters Theresa Agovino, Meanwhile, the nonprofit Hudson River Park Trust is As for the bogeyman of privatization, it didn’t wall off Aaron Elstein, Lisa Fickenscher, Matthew Flamm, Daniel Massey, Miriam Kreinin Souccar eating through its $20 million reserve fund as fast as those Battery Park City, as reporters Amanda Fung, Shane Dixon Kavanaugh, nasty marine borers are chewing up the piers. In less than anyone who strolls or Adrianne Pasquarelli Park trustees reporter/producer Emily Laermer three years, the reserve will be exhausted. One-third of the cycles through it can art director Steven Krupinski park is still not built, for lack of $200 million. need flexibility attest. Plazas under deputy art director Carolyn McClain staff photographer Buck Ennis But the situation is far from hopeless.The park’s popularity many office buildings copy desk chief Steve Noveck and superb location offer great potential for revenue, which is from Albany to are technically private copy editor Thaddeus Rutkowski data editor Suzanne Panara necessary in the absence of public operating money. However, generate cash yet are heavily used by interns Ken Christianson, Cara Eisenpress, Emily the 1998 state law that created the park forbids a variety of the public. It insults Lundeen, Eva Saviano, Mary Shell, Amy Stern

lucrative uses.The park’s stewards are asking the state New Yorkers to suggest EDITORIAL AND ADVERTISING OFFICES Legislature to give them some flexibility, including the right that they would not 711 Third Ave., New York, NY 10017-5806 to add residential development. One possibility is 800 visit an attractive editorial: 212.210.0277 Fax 212.210.0799 advertising: 212.210.0711 apartments and a 150-room hotel on the 15-acre Pier 40, the recreational venue because of apartments or a hotel nearby. Cable craincom nyk park’s prime commercial asset, which may need to close as Moreover, changing the law would not commit the park Fax 212.210.0499 Entire contents ©copyright 2012 Crain soon as 2014 if there’s no cash for repairs. to anything. Projects would still be subject to the city’s Communications Inc. All rights reserved. The trust also wants the right to award long-term leases exhaustive, seven-month public review process, which lets ®CityBusiness is a registered trademark of MCP Inc., used under license agreement. because the current 30-year limit is too short for developers the community and the borough president weigh in before and their financiers to commit to a major project. Another the City Council and mayor render a decision. Of course, the TO SUBSCRIBE: For subscription information and delivery concerns, request is for the power to issue bonds to raise money upfront process would relegate state legislators like Ms. Glick to the please e-mail [email protected] from commercial uses that will generate revenue for decades. sidelines. But political power plays should not be a or call 877-824-9379 (in the U.S. and Canada) or 313-446-0450 (all other locations.) $3.00 a copy, These are reasonable requests. But, New York being consideration in the context of saving the park. $99.95 one year, $179.95 two years. New York, there is opposition: Notably, Assemblywoman The Legislature should amend the Hudson River Park www.crainsnewyork.com Deborah Glick, whose district includes the crumbling Pier Act before it adjourns this month. ADVERTISING AND MARKETING advertising director Trish Henry senior account managers Irene Bar-Am, Courtney McCombs, Sheryl Rose, Suzanne Wilson account executive Jill Bottomley Kunkes CRAIN’S ONLINE POLL COMMENTS sales coordinator print & online Danielle Wiener newsletter product manager SHOULD MAYOR Alexis Sinclair credit Todd J. Masura 313.446.6097 BLOOMBERG BAN director, audience development Re: the ‘Big Gulp ban’ Michael O’Connor LARGE-SIZE SUGARY senior marketing manager ONLINE COMMENTERS POP OFF obese.They will grow up into fat, type-2 Catherine Schutten DRINKS? diabetes adults who cost a fortune to treat. event producer Courtney Williams Studies show that we don’t get enough sleep. Nobody is an island; people’s health reprint sales manager Lauren Melesio Date of poll: May 31 Will there be a curfew so we can all get our rest? decisions end up costing themselves, their 340 votes general manager, online & e-commerce Loud noises are also bad for our health. Will families and the taxpayer if they end up on strategy Kira Bindrim the mayor ban car horns, jet planes, fire engines Medicaid because they’re so fat it affects their senior web developer, interactive and helicopters? health and ability to work. Chris O’Donnell

No . 64% The subways are much too crowded and In the 1950s, a Coke was six and a half NEW YORK PRODUCTION contribute to the spread of illnesses like the ounces; today it is 22 ounces or more. production and pre-press director common cold. Will he require us to wear Poisoning your kids isn’t some expression of Michael Corsi

protective masks and limit the number of “freedom.” It’s just stupid. advertising production manager 36%. passengers per car? —brian Suzanne Fleischman Wies Violent and gory movies give some people PUBLISHED BY CRAIN COMMUNICATIONS INC. Yes bad dreams. Will he regulate movie content so I wonder how enthusiastic and zealous City they’re all peaceful and happy? Hall would be if it were ever discovered that chairman Keith E. Crain president Rance Crain Being unemployed is stressful and often Bloomberg terminals posed some sort of secretary Merrilee Crain leaves the unemployed person with no health physical or environmental hazard. treasurer Mary Kay Crain insurance. Will he give the unemployed jobs —hj flowers executive vp, operations William Morrow with benefits? senior vp, group publisher Gloria Scoby Nanny Bloomberg may have created the With the money you’re saving on Big Gulps, group vp, technology, circulation, manufacturing Robert C. Adams latest party-game craze: What ridiculous you don’t need that silly living-wage law. vice president/production & initiative will Mayor C. Montgomery —spyder darling manufacturing David Kamis Bloomberg come up with next? Discuss. chief information officer Paul Dalpiaz

—often annoyed CRAIN’S WELCOMES SUBMISSIONS to its opinion founder G.D. Crain Jr. (1885-1973)

buck ennis pages. Send letters to [email protected]. chairman Mrs. G.D. Crain Jr. (1911-1996) For this week’s questions: Go to People are knocking Mayor Bloomberg for Send columns of 475 words or fewer to www.crainsnewyork.com/poll to have your say. wanting to reduce sugary-drink sizes. Guess [email protected]. Please include the writer’s what? Forty percent of NYC schoolkids are name, company, address and telephone number.

10 | Crain’s New York Business | June 4, 2012 20120604-NEWS--0011-NAT-CCI-CN_-- 6/1/2012 1:02 PM Page 1

OPINION Crain’s Real Estate Conference

harden positions even if President Obama wins—not good for solving Seizing the Moment 2012 Wall St.’s harmful the crisis that looms at the end of the year when taxes will soar and federal budget-slashing will begin.  Mr.Romney’s campaign treas- As the economic recovery sputters, there’s every sign Romney embrace ury may see a boost, but it’s just an- other black mark for the immensely that the market is digging in for a long haul. Looking wealthy candidate with a Swiss bank all Street has abandoned Barack Obama account who has yet to overcome the on the bright side, it also means New York has become suspicion that he’s just a rich guy and embraced Mitt Romney. It’s a move more competitive. So where can investors, developers, that will harm the presidential candidates, looking out for the interests of his fellow plunderers. the securities industry and probably the rest  Wall Street’s standing with the and landlords find growth and opportunity? of us as well. American public will continue to The Street’s increasing unhappiness with the president has erode. While the securities industry W has never been at the top of any list been playing out for some time, but the decisiveness of the shift of the best-loved institutions, the was spelled out in a CNNMoney.com story last week.Through portion of Americans who have a great deal of confidence in it plunged KEYNOTE SPEAKER: the end of April, indi- Romney than employ- to 4% (!) in the recession and remains viduals who work in se- ees of any other firm. in single digits, according to Harris David Skorton, President curities and investment It’s not a surprise that Interactive. firms contributed $8.5 Wall Streeters don’t This makes it impossible for Wall Cornell University million to the Romney want to give money to Street to win discussions about reg- campaign, compared someone who spends ulation or to weigh in on broad fiscal with $3 million for the his time blaming them and economic questions. Join Crain’s and hear from David Skorton Obama effort. for the economic ills of Why does this matter? Because about why Cornell was intent to win the That’s a sharp rever- the country.Here are the after the election, whoever wins sal from the last election, consequences: must confront the fiscal cliff—the applied science and tech campus bid. when candidate Obama  The president will sudden expiration of tax cuts and the Skorton will discuss the economic impact raised $16 million from GREG now be freed of the last imposition of sharp spending re- the industry, almost DAVID restraints on his rhetoric ductions—which could send the CornellNYC Tech will have on the business double John McCain’s that this election is about nation back into a recession.And,of community and how the project will $9 million. When 2012 the haves and the rest of course, there’s the need to address contributions are ranked by the com- America.This may help him win,but long-term problems with entitle- revitalize Roosevelt Island and the F train panies where donors work,the top six it also contributes to the lack of con- ments and the national debt, which by creating a tech corridor from spots are all financial firms. Also in- fidence businesspeople have in their will double in less than a decade. teresting: People who work at Gold- prospects, deters investment and What happens after the election Manhattan to Queens. man Sachs have donated more to Mr. hamstrings the recovery. It will also may be as important as who wins it.

PANELS: The city took a positive step in March by requesting proposals for Plenary: Big Projects Revealed Cleaning up NY’s waste-conversion facilities within 80 miles. But new plants would process Pockets of Strength a maximum of 900 tons per day,about 5% of landfilled city garbage, and the New Money Trail garbage disposal most mature conversion technology, combustion, is ineligible. The Residential Puzzle Greater savings would be BY CAROL KELLERMANN achieved by allowing larger new plants and partnering with existing Over the Horizon ew York City generates more than 25 tons of local ones. Thirty-three facilities garbage per minute. That’s 14 million tons per operate in New York and adjacent states, and the city should explore year, and the city’s Department of Sanitation their ability to receive additional spends $2 billion annually to collect and dispose garbage, either as currently config- of about a third of it. ured or through expansion. EVENT INFORMATION: More than $300 million of that tab goes to railroads, truck- Locating a plant within city bor- N ders poses significant hurdles, but Tuesday, June 12, 2012 ing companies and landfill operators to transport and dispose of other cities, including Paris and 3 million tons of nonrecycled garbage, shipped mostly to Ohio, Copenhagen, have recently de- Signature Theatre, 480 West 42nd Street signed plants that fit into the urban 8:00 am - 8:30 am: Networking Breakfast Pennsylvania, South Carolina and Instead of landfilling, New York landscape.New York City’s legacy of Virginia. This translates to $95 to City should follow the example of waste incineration also hinders de- 8:30 am - 12:00 pm: Program ship and bury one ton of garbage— many European countries that con- velopment, but air emissions from and this price is rising. The most re- vert nonrecyclable garbage into en- modern plants bear no resemblance cent contract for exporting garbage ergy. Norway, Denmark, Sweden to 1960s-era incinerators and meet REGISTER TODAY AT: by rail sends city garbage more than and Switzerland each recycle more strict federal and state regulations. 650 miles to Virginia,at $135 per ton. than 40% of their garbage and con- If local waste-to-energy facilities crainsnewyork.com/events-realestate2012 Exporting garbage is not only ex- vert about half the rest to energy, processed 2 million more tons of city pensive, it does enormous environ- while New York City recycles 15% waste, New Yorkers would save Or call: (212) 210-0739 mental harm. The trucks and trains and converts only 9% to energy. $119 million annually and $2 billion that carry garbage emit greenhouse The savings in converting waste over 30 years. The reduction in an- gases, and the decomposition of to energy would be substantial.The nual greenhouse-gas emissions garbage in landfills generates current cost of local waste-to- would be 35%—the equivalent of methane.Although the city is reduc- energy is between $66 and $77 per eliminating all vehicle traffic ing emissions by rail-hauling more ton, compared with $95 for long- through the Holland Tunnel. garbage, tractor-trailer trucks still distance landfilling. These are major savings and envi- travel 40 million miles to dump city The environmental benefits ronmental improvements.New York garbage each year. This generates would be significant, too. Every City should not miss out on them. Program Partner: about 679,000 metric tons of green- 14,400 tons of garbage converted to For sponsorship information , please contact Trish house gases per year—the equivalent energy is the equivalent of removing The author is president of the Citizens Henry at [email protected] or (212) 210-0711. of 133,000 cars on the road. 1,000 cars from the road. Budget Commission.

June 4, 2012 | Crain’s New York Business | 11 20120604-NEWS--0012-NAT-CCI-CN_-- 5/31/2012 5:36 PM Page 1

SMALL BUSINESS

teachers, Lee & Low launched Be- bop Books, a line aimed at school- Multicultural publisher holds its own children just learning to read.“Then [the teachers] started asking,‘What else do you have?’ ” said Mr. Low. Uncovering such stories and Sales ballooned as the company Lee & Low Books their authors has been vital to Lee & started peddling picture books keeps growing, Low’s success as an independent to teachers. publishing house. The 21-year-old Lee & Low has also been target- despite competition business is one of the few in New ing schools outside New York City, York—and the country—that con- its core market, which is facing edu- from giant rivals centrates solely on children’s books cational budget cuts.The company’s written by and about minorities. Its sales force has landed large orders in BY MAGGIE OVERFELT best-known titles include Baseball St. Louis and parts of Florida. Saved Us by Ken Mochizuki and panning the conference- Yummy, a graphic novel by G. Neri Acquisition fuels growth room shelves at Lee & about gang life. This year, the company is gradu- Low Books in midtown According to the Cooperative ally reprinting the best-selling Manhattan, the publish- Children’s Book Center at the Uni- books from Children’s Book Press, a er’s children’s picture versity of Wisconsin-Madison, five-employee San Francisco firm books are decorated with a rainbow about two dozen minority-focused Lee & Low bought in January. S buck ennis of vibrant fine-art spreads and publishers exist in North America, DIVERSE APPROACH: Jason Low targets minority readers at Lee & Low Books. “We were really thrilled when we award-winning verse. But a closer with most of them headquartered in heard Lee & Low was buying CBP,” look reveals many titles and subtexts the San Francisco and New York said Amy Cheney, a librarian at the tied to dreadful political events: the City areas. Public-school teachers we’re not seeing a comparable trend executive editor at Scholastic Trade Alameda County Juvenile Justice arduous flight of a group of Su- and librarians drive this small mar- in the rise of books that reflect that Publishing, the world’s largest chil- Center in Northern California, not- danese refugee children, the treat- ket. The Cooperative notes that of population,” said Kathleen Horn- dren’s book company. ing that her patrons often gravitate ment of Japanese-American prison- the 5,000 kids’titles published in the ing, the Cooperative’s director. Lee & Low can’t compete with to multicultural titles.“It’s very chal- ers at internment camps during U.S. last year, 219 were written by To address the problem—and the giants’ budgets—the 15- lenging to find books that are of in- World War II and the story of a minority authors. The numbers presumably tap the potential sales employee firm puts out 12 to 16 new terest to people of color across a wide south Chicago preteen executed by haven’t changed much since 1985, from a more diverse audience—edi- titles a year,compared with Scholas- range of literacy levels. Lee & Low his gang. the year the Cooperative started tors from New York’s largest publish- tic’s 600—but Mr. Low said the does stuff a lot differently. They’re “I think that’s what a lot of folks tracking them. ing houses, most of which have their profitable company does multimil- not just in it to chase best-sellers.” Ⅲ have counted on us for—to take on own multicultural imprints, recently lion-dollar sales each year. subjects that aren’t easy to talk Teachers’ input sparks new line launched a forum to discuss how to The lion’s share of Lee & Low’s To sign up for Crain’s about,” said Jason Low, Lee & “Census statistics show an in- increase diversity in books. “Multi- sales—about 80%—comes from the SMALL BUSINESS newsletter, go to Low’s publisher and a second- creasing population of Latinos, cultural is the new mainstream,” said educational market. A few years www.crainsnewyork.com/smallbiz. generation owner. African-Americans and Asians, but Andrea Pinkney, vice president and ago, after getting input from

GE Capital LIKE A BANK: WE CAN LOAN YOU MONEY. UNLIKE A BANK: WE CAN ALSO LOAN YOU RYAN.

At GE Capital, we’re not just bankers, we’re builders. Our experience in aviation is unmatched. After all, we’re part of GE, the company that built the first jet turbine. We’re also a world leader in aircraft leasing. So when Ethiopian Airlines needed to modernize and expand their cargo fleet quickly, Ryan and his team were able to get them the wide-body jets they needed to continue their ascent. No matter what your company needs, chances are we have someone with the know-how to make your business more competitive – and we’re happy to share. Stop just banking. And start building. GE works. GECapital.com

Ryan Barrett GE Capital Aviation Services

12 | Crain’s New York Business | June 4, 2012 20120604-NEWS--0013-NAT-CCI-CN_-- 5/31/2012 5:37 PM Page 1

REAL ESTATE DEALS VARIED VACANCIES Class B office space, May 2012 Chain consolidates on West 38th AVG. RENT VACANCY PSF RATE one-third larger than a few weeks when im- complementary companies in the Downtown Caché merges two Fort Street’s present provements to the space building.” offices in garment SoHo quarters, at 578 are completed, according The 11-story building is now $34.60 9.3% Broadway, at Prince to Barbara Raskob, who 100% occupied. Its tenants include district into one HQ Street.It has been locat- along with colleague FXFowle Architects and Office Fur- Midtown ed there for roughly 15 Steven Kaufman were niture Heaven Inc.“They fit perfect- aché, a mall-based years. the in-house representa- ly in the building,” said Ms. Raskob. $48.43 11.6% women’s retail chain,is The tenant plans to tives for the landlord, the The high-end rug company was Midtown south relocating its head- use the space for an of- Kaufman Organization. founded in 1996 by artists Janis Pro- quarters to 256 W. 38th fice, showroom and art “The area is a con- visor and Brad Davis.Fort Street has St.,where it has inked a studio, where it will de- genial atmosphere for designed carpets for the Hermès $45.52 5.9% Clease for 43,100 square feet. sign carpets. interior design,” he Maison collection, among others. Source: Jones Lang LaSalle The asking rent for the 10-year The firm will move in added.“There are a lot of —amanda fung deal was $37 a square foot.The com- pany plans to move in during the third quarter from two buildings where it has operations, 1440 Broadway and 260 W. 39th St. The deal brings the 14-story building to 90% occupancy, accord- ing to Michael Frantz, a Newmark Grubb Knight Frank broker who represented the owner, East End Capital. Mr. Frantz said the build- ing is in the midst of an extensive renovation that began last Septem- ber, when East End bought it. Jones Lang LaSalle brokers rep- resented Caché. —theresa agovino Designer stitches showroom, studio Fashion designer Mara Hoffman has sewn up a lease on a new show- room and studio. Ms. Hoffman, who founded her womenswear line a dozen years ago, recently signed a five-year deal for 3,200 square feet on the ninth floor of 866 Sixth Ave., between West 30th and West 31st streets. The asking rent was $31 a square foot. Previously, Ms. Hoffman shared a showroom in the garment district, and operated her own studio of less than 1,000 square feet on West 28th Street. Her clothing sells at boutiques such as Wink NYC, as well as department stores like Bloomingdale’s. “This is a big expansion for her,” said Andrew Epstein, president of Easy Street Properties, who repre- sented Ms.Hoffman in the deal.He noted that the area is very hot right now, thanks to the proximity of the Ace and NoMad hotels. Sam Stein of Justin Manage- ment represented landlord Nisselli Realty in the transaction. —adrianne pasquarelli Rug-maker really ties room together Fort Street Studio is shifting its headquarters north to Chelsea from SoHo. The company, which turns wild Dandong silk from the oak forests of northern China into luxu- rious hand-knotted rugs, has signed a 10-year lease for 8,100 square feet at 22 W. 19th St. The asking rent was in the high $30s per square foot. “Their business is expanding be- cause they are doing very well,” said Jim St.Andrew of Peter McCuen & Associates, who represented the tenant, adding that the new space is

June 4, 2012 | Crain’s New York Business | 13 20120604-NEWS--0014-NAT-CCI-CN_-- 5/31/2012 6:42 PM Page 1

ately referred to him as a micro- Hospitals get nightclub profits manager who would call them at all hours of the night to discuss the business. Continued from Page 3 or department after himself or his mous roller-skating disco, and fur- Mr. Scharf said, “230 Fifth was er, Charles, and close friend family. ther burnished his nightlife cred as really the capstone of his career.” Michael Scharf—said they have no- a co-owner of the Palladium night- Unlike many small businesses tified the potential beneficiaries,but His 15 minutes club. He later co-owned the that close after the death of a hands- discussions about the bequest A charismatic entrepreneur who Gramercy Park Hotel with Ian on owner, 230 Fifth is being primed amounts will occur after the auction made his fortune on Wall Street in Schrager, of Studio 54 fame, and for its future as perhaps the most un- takes place. the 1970s as a financial public rela- even dabbled in publishing as the usual philanthropic vehicle in New “Charles and I have discretion tions expert, Mr. Greenberg, who owner of Fame magazine. Nearly a York. The bar, located on the 20th about the amounts,” Mr. Scharf never married, was drawn to New decade ago,he operated the rooftop floor of a 98-year-old office build- said,“but it could be as much as sev- York’s nightlife scene in the 1980s. bar at the Gansevoort Hotel in the ing, sprawls across 16,000 square

en figures for each institution.” He became friends with Andy meatpacking district. feet of interior space and 14,000 newscom Mr. Scharf, who had known Mr. Warhol, keeping company with his But it was his passion for 230 square feet outdoors. It can legally OUTGOING: Nightlife king Steven Greenberg Greenberg for 35 years and was his entourage of celebrities and devel- Fifth that consumed Mr. Green- hold up to 1,200 patrons at a time. business partner in several ven- oping a reputation as a ladies’ man. berg near the end of his life. No de- Its lease has 13 years remaining. tures, said his friend’s wishes were Around the same time, Mr. tail about its operation was too “We have gotten many calls from they don’t realize the size of this that the hospitals name a wing, hall Greenberg opened the Roxy, a fa- small for him. His staff affection- people interested in buying it, but business,”Mr.Scharf said.“If some- one made an exceptional offer, we’d have to consider it, but we are not marketing the property.” Two managers, Sal Rozenberg, 33, and John Benedetti, 28, who opened the bar and restaurant with Mr. Greenberg six years ago, are now in charge of managing the 150- person staff. “Very few bars in the city experi- No other industry takes ence year-over-year growth the way 230 Fifth has,” said Mr. Rozenberg, who is keenly aware of the fickle na- ture of the nightlife industry. The your money and expects Fifth Avenue property,a trendsetter, spawned a wave of copycat rooftop bars throughout the city, including new venues on the roofs of the Em- pire, Roosevelt and Ink48 hotels. you to do all the work, Messrs. Rozenberg and Bene- detti have just begun to put their youthful stamp on 230 Fifth, which until recently had no automated reservation or purchasing system. aside from a “dude ranch”. Not even a Twitter account. “We used to call customers or even use a fax machine for reserva- tions,” Mr. Rozenberg said. Big shoes, big changes Some things won’t change: Cus- tomers will still be able to drape themselves in the red bathrobes Mr. Installs in Scans Uses 95% No Signatures, No Greenberg bought to warm them Less than in Under Less Memory No Updates, Management on chilly nights. But the carpeting 6 Seconds 2 Minutes During Scans No Patches Server Needed will go, the dark burgundy bar will get an update and so, too, will the menu. Kitchen hours have been ex- Webroot is taking the misery out of security. tended to 4 a.m., and the bar may Webroot SecureAnywhere provides the fastest, least-disruptive, easiest-to-manage endpoint open earlier in the day. As they tweak the business, the executives protection. With no updates and the fastest scan times, security no longer has to disrupt employee are mindful of the big shoes they productivity. Which is why we’ve already replaced slow, bloated security software in more than have stepped into. 1,000 businesses – including replacing Symantec at a 28,000-endpoint organization. If you’re still “Steven was the visionary,” Mr. skeptical, and with so many security companies overpromising and under delivering we can’t Rozenberg said. “He had amazing ideas and took risks that others blame you, go to Webroot.com today for a free demo or trial. wouldn’t.” Mr. Greenberg’s generosity con- “ Webroot scanned 30 times faster “ Frees up resources on client PCs tinues to surprise his loved ones.His than Symantec. And it found an and completely removes the family has discovered many un- cashed checks from friends to whom infection they missed for months.” need for definition updates.” Mr. Greenberg loaned money over Ty Smith, Kelvyn Taylor, the years. His longtime doctor, I.T. Administration, Doris, Inc. ZDNet UK Louis Aledort, described his former patient as “one of the most generous men I knew.” A renowned hematologist, Dr. Aledort’s research at Mount Sinai on bleeding disorders could receive hundreds of thousands of dollars from Mr.Greenberg’s estate.As long as the doctor remains at the hospital, GET THREE when you buy Webroot SecureAnywhere. Call 1-800-870-8102 and mention SUMMER2012. the will stipulates, his research should receive financial support. Or visit today for a free demo, a free cost/benefit assessment, or a free trial. MONTHS FREE webroot.com “The money,”Dr.Aledort noted, “would allow us to increase the ©2012 Webroot Inc. All rights reserved. Webroot, SecureAnywhere, Webroot SecureAnywhere, and the globe design are trademarks or registered trademarks of Webroot Inc. number of projects we work on.” Ⅲ in the United States and/or other countries. For offer terms, visit www.webroot.com LISTEN to a discussion at CrainsNewYork.com/podcasts

14 | Crain’s New York Business | June 4, 2012 20120604-NEWS--0015-NAT-CCI-CN_-- 5/31/2012 5:38 PM Page 1

TECHNOLOGY ‘The biggest thing New York has to offer is customers who are willing to try new things to remain competitive.’ —Roger Ehrenberg, managing partner, IA Ventures, page 19

NY’s big data play. SILICON Really big City startups find troves of digital info ALLEY can be lucrative

BY JUDITH MESSINA

Eighteen months ago, Jim Moran, co-founder of daily deal aggregator Yipit, started getting calls from daily deal sites interest- ed in buying his data.They want- ed to know how they were doing, to compared with the competition. Mr. Moran declined, insisting that Yipit was a consumer busi- If Silicon Alley has a ness, not a data business. But when the calls persisted, mantra, it is change. It he decided to experiment. It didn’t take long to figure out the seems like everyone in value of Yipit’s data, a treasure trove of information about 800- the city’s tech plus daily deal sites and the tens of thousands of merchants who neighborhoods is use them. Yipit knows not only who’s offering what deals, but updating codes, shifting also which deals are paying off. Today, analyzing and selling designs and iterating new that data has become a healthy secondary business for Yipit, Mr. business models in an Moran says, although he won’t disclose the company’s revenues. endless cycle of “A year and a half later, we are adaptation. Here’s the primary data vendor for near- ly every major company in our in- Crain’s guide to the dustry as well as for the largest in- vestors in publicly traded daily fastest-changing scene deal companies like Groupon,” he said. “Data is providing a very in town. meaningful revenue stream and deepening our relationships with BY ELIZABETH MACBRIDE, JUDY MESSINA deal sites.” AND MAGGIE OVERFELT See BIG DATA on Page 19

The US Open moves fast. So do the tickets.

American Express® Cardmembers can beat the crowd with advance tickets. Catch the US Open live. From 6/4 to 6/9, get your US Open tickets early and don’t miss your opportunity to share in all the excitement.

Visit USOpen.org or call 866-OPEN-TIX today.

To apply for the American Express® Card, visit americanexpress.com. Tickets go on sale to the general public on June 11. No tickets are sold on June 10. American Express Early On-Sale Tickets available for Arthur Ashe Stadium Promenade section, grounds admission and Louis Armstrong Stadium. All ticket orders are subject to a Ticketmaster service fee and handling charge. Ticket limits apply – eight (8) tickets per day or evening session with a maximum total of 16 tickets. Tickets are from limited inventory Victoria Azarenka and subject to availability. Purchase must be made with an American Express Card. ©2012 American Express Company.

June 4, 2012 | Crain’s New York Business | 15 20120604-NEWS--0016,0017-NAT-CCI-CN_-- 5/31/2012 5:39 PM Page 1

REPORT TECHNOLOGY

Angels Facebook THEY ARE THE WALL STREETERS, the THE BIGGEST SOCIAL NETWORK OF ’EM serial entrepreneurs and other deep ALL has opened a New York pockets who are driving seed- and engineering office, but it’s outside the early-stage funding in Silicon Alley, usual neighborhoods for tech. shelling out millions to get in on the Despite CEO Mark Zuckerberg’s first days of the next Google or notorious disdain for corporate Facebook. They’re investing niceties, Facebook will occupy alongside established venture two floors in the heart of capitalists and, in some midtown at the Bank of America building at East 43rd Street cases, drawing VCs’ ire as and Madison Avenue. Indeed, Facebook’s presence they push up early there has already made it a protest site, by, for valuations. Barely on the instance, the online women’s group Ultraviolet, radar a decade ago, active New York angels today number nearly 100 and decrying the fact that Facebook’s board of directors play an increasingly important role in the city’s developing tech ecosystem. is all male. Tsk, tsk, Mark. For angel hangouts, see www.NewYorkAngels.com and www.Gust.com. bloomberg news Also: Apps THE GAMES AND PROGRAMS that sit on a mobile device or tablet Cheap digs and help you navigate the ups and downs of modern life (or FIRMS THAT USED TO DECAMP simply pass time on the subway). They sometimes end up as full- for, say, New Jersey are now fledged businesses, as in GroupMe, which parlayed an app for flocking to communal group messaging into an $80 million buyout by Skype. Most, workspaces in Manhattan or however, don’t make any money at all. Brooklyn, such as General Assembly, Hive at 55, WeWork Labs and New Work City.These affordable shared Buzzworthy haunts give startups space to THE FAST-GROWING, CATEGORY- learn, build, collaborate and KILLING COMPANIES—like istock commiserate. Some fast-

Gilt Groupe buck ennis Gilt Groupe, Rent the Runway and proliferating tech incubators Tumblr— are the subject of constant also fall into this category, such NEW YORK’S MOST LIKELY IPO CANDIDATE, Gilt Groupe, founded and led by speculation about their revenues and IPO as TechStars, the Dumbo former DoubleClick CEO Kevin Ryan, hauls in $500 million in revenue prospects. When they put out the word Startup Lab, NYU-Poly’s annually and has a $1 billion valuation. Executives are talking about a that they are looking for money, they are Varick Street Incubator and potential public offering next year but acknowledge that the company, the firms that every investor wants a DreamIt Ventures, where which has yet to turn a profit, needs at least to get to breakeven. piece of. Examples include ad-tech wannabes get money, advice companies AppNexus, Yodle and Buddy Media; e-commerce sites and tough love from a such as Etsy, Fab,Thrillist and iDeeli; social-media plays Foursquare coterie of VCs and serial and Kickstarter; and SecondMarket in the finance space. entrepreneurs. DoubleClick

THE MOTHER SHIP, as some veteran Alley cats call DoubleClick, istock remains the most successful New York company to come out of the first tech boom—and even the second, so far. Sold to Hackers Google in 2007 for $3.1 billion, it set the stage for a New York- ONCE A TERM OF OPPROBRIUM for centric ad-tech industry that drives the ads that drive the Net. malefactors and has-beens, “hacker” Many now-rich DoubleClick grads are seeding new firms and is now happily applied to the wizards starting their own, helping to build in New York the self-renewing of the Alley who, among other things, cycle that has made Silicon Valley … well, Silicon Valley. think up algorithms to massage the massive amounts of data flowing out DoubleClick co-founder of the Internet. The term is KEVIN O’CONNOR memorialized in groups like hackNY Interface moved on to and at “hackathons,” where these ADVANCES IN USER INTERFACE become CEO of poets of programming pull all-nighters FindTheBest.com. TECHNOLOGY over the past decade Also: to see who can build the coolest app. made Web 2.0 possible. When Disrupt Internet browsers started acting more like software and less like IT’S THE TERM THAT DESCRIBES the mission of nearly every static images, the connections tech startup: to disrupt, or upend, traditional businesses between users and websites and their ways of doing things. Some “change the world” became more fluid.That, in turn, firms actually manage to do it, such as SecondMarket, has enabled innovation in which created a new online market for illiquid assets and important New York industries, became the enabler for more than $500 million in private like e-tail—and potentially in stock to change hands last year. See also Hackers and other sectors, such as education

Facebook and its call to battle, “Move fast, break things.” newsbloomberg and health care.

Engineers Also: And: THE GOOD NEWS IN SILICON ALLEY is that there E-tail Entrepreneur are plenty of jobs for skilled engineers; the bad ONE OF THE CITY’S GOODBYE, WALL STREET. HELLO, UNION SQUARE. Being news is that there are plenty of jobs going STRENGTHS, it means the an entrepreneur is now the default glamour career for unfilled for lack of talent. Mayor Michael onlining of retail, whether 20-somethings. And teaching the fledgling moguls Bloomberg’s plan for an applied-sciences the product is Dolce & how to get money and make money has become an university on Roosevelt Island could help Gabbana dresses from Rent the avocation for the city’s academics and business gurus. solve that problem, but it won’t be fully up to Runway or hand-crocheted Every college is pushing courses and contests in speed for years. In the meantime, software coasters from Etsy. entrepreneurship. You can even get a Ph.D. in it. But engineers can command salaries topping See Gilt Groupe, the city’s current can you really teach someone to be an entrepreneur? $150,000. top candidate to go public. The jury is still out. 16 | Crain’sE New York Business | June 4, 2012 20120604-NEWS--0016,0017-NAT-CCI-CN_-- 5/31/2012 5:40 PM Page 2

REPORT TECHNOLOGY

Information technology Nabes jobs in NYC grew AS IN HOT TECH NEIGHBORHOODS. There’s Dumbo, the new go-to nabe for scrappy startups, like Etsy. Chelsea: Google is there. So is seemingly everyone else, too. SoHo is for hipsters and companies like 60%between 2003 and 2012 Foursquare and OMGPOP. And, of course, there’s Union Square, where tech guru and moneyman Fred Wilson holds court along with Knewton, Apple’s iAd business and, soon, FirstMark Capital, which is reportedly moving from midtown to be closer to its BIG NUMBERS portfolio rise18% in the past two years companies. Jobs Also: TECH COMPANIES are one of the few segments of the city’s economy that are The ‘n’ producing big numbers of jobs these days.J According to the state in .nyc Department of Labor, information technology jobs in the city rose 60% between 2003 and 2012, including 18% in the past two years alone, a time A NEW DOMAIN NAME when most other industries were shedding jobs or growing slowly, if at all. the city plans to Check out NY Tech Meetups’ Made in New York site (www.nytm.org/ sell to local

made-in-nyc), where half of the more than 300 companies listed, companies. buck ennis including Buddy Media, JIBE and LearnVest, say they are actively hiring. OMGPOP OMG, IT’S WORTH WHAT? The SoHo-based gaming site was acquired in one of the biggest tech M&A deals so far this year. OMGPOP was sold in March to Zynga for a whopping $180 $180M million, and founder Charles AMOUNT Forman pocketed more than $22 Zynga million. When Zynga announced paid for game- the purchase, OMGPOP’s Draw maker OMGPOP Something was the most popular game on Facebook, with 14 million active users. Users are now down to 10 million, however, and some Alley watchers are asking whether it was worth all that money.

buck ennis Quirky LOCATION-BASED, ENSCONCED IN THE INDUSTRIAL BOONIES OF THE FAR LOCATION-BASED, WEST SIDE, Quirky shows the breadth of the tech boom.The company, founded and run by a high- LOCATION-BASED school graduate, aims to use technology to IT’S THE DRIVING TREND IN SOCIAL turn New York City MEDIA. Users broadcast their back into a whereabouts to friends or find manufacturing town. Kickstarter services, products or people Well, at least a little CO-FOUNDED BY NEW YORKER PERRY nearby. Foursquare, founded by bit. Using 3-D larry ford CHEN, Kickstarter is the go-to player in Dennis Crowley, is the granddaddy printing produced by the new Wild West of crowdfunding— of it all, with 20 million users MakerBot, a Brooklyn-based darling of the tech raising money from potentially checking in and 750,000 scene, Quirky turns out prototypes of products thousands of small contributors. In merchants offering deals. Other Pivot created by home-based inventors and tinkerers players:ThinkNear, Hyperpublic, and sends the best off to Asia to be mass- three years, the company has pulled IF AT FIRST YOU DON’T Place IQ and LocalResponse. manufactured. Its in $175 million for some 20,000 SUCCEED … The new, most successful projects and is reportedly on its way crucial test for entre- product so this year to raising $300 million. One preneurs is if and when far, a of its latest beneficiaries, smart-watch to pivot—to abandon a business that’s not pivoting inventor Pebble, was initially rejected succeeding and relaunch it as something else. Even surge by VCs, but by using Kickstarter’s VCs say they don’t buy an idea for a business so protector, platform, it has brought in more than much as the people peddling it. Case in point: The sold nearly $10 million from nearly 70,000 buzzworthy startup Fab, which started out as a 250,000 people. The crowdfunding frontier is social network for gays and morphed into a flash units and likely to get even wilder under new sales site selling high-concept goods from furniture paid more government regs that allow to fashion accessories; these days, it is hauling in than $280,000 companies to raise equity online. $1.5 million in sales every month. to its inventor.

Also: LARGEST VC FIRMS IN NY Mobile Numbers of NYC investments through 2011 NOTHING MAKES THE GRADE ANYMORE UNLESS IT’S MOBILE. If Moneymen Ⅲ First Round Capital 25 you can’t do it on a smartphone or a HOMEGROWN VENTURE CAPITALISTS Ⅲ RRE Ventures 21 tablet, you can’t do it. Every organization, like Roger Ehrenberg, Rick Ⅲ Lerer Ventures 20 from startups to nonprofits, to big media Heitzmann, Fred Wilson and James Ⅲ Connecticut Innovations 17 comglomerates like News Corp. and Robinson IV are staking young Ⅲ SV Angel 16 Time Inc., is pushing its content to companies to tens of millions of smaller and smaller devices as dollars in capital. New York is so hot that even West Coast and Boston VCs, who consumers ditch their laptops and once shunned the city as a backwater of technology, are setting up offices, including embrace mobility. California tech celeb Ron Conway, who now has 20% of his investments here.

June 4, 2012 | Crain’s New York Business | 17 20120604-NEWS--0018-NAT-CCI-CN_-- 5/31/2012 5:40 PM Page 1

REPORT TECHNOLOGY

Wall Street NOT ONLY IS THE WORLD’S FINANCIAL HUB SPAWNING a host of fresh startup founders (see Entrepreneur), its banks and financial services firms are inspiring the growth of one of the city’s fastest-growing tech sectors: fin tech. Upstarts like SecondMarket, Betterment and Gust are transforming things like share trading and investor networking; the New York City

buck ennis Investment Fund and Accenture have Roosevelt Island Verticals endowed what they call the FinTech NEW YORK CITY’S ANSWER TO STANFORD AND SILICON VALLEY. THE COMPLEMENTARY SUB- Innovation Lab, Roosevelt Island is the site of a new $2 billion applied-sciences BUSINESSES that startups launch which university to be built over the next 25 years by Cornell University to prove their traction. For encourages and Israel’s Technion University. Cornell alumnus Charles F. Feeney, example, CB Insights, which innovation of Atlantic Philanthropies and the Duty Free Shoppers Group, is tracks venture funding, last year within the helping to bankroll the new school with a $350 million gift, the launched Mosaic, a service space. largest in the university’s history. The brainchild of Mayor Michael that combs the Web for buck ennis Bloomberg and his tech boosters at the New York City Economic credit-related info on private Development Corp., the campus could be the mayor’s chief legacy companies that it sells to to the city. potential lenders. Xtify Also: XTIFY’S ONE OF THE CITY’S just-under- the-radar business-to-business tech Valuation companies, like AppSense, WHAT DO YOU MEAN, “SHOW ME Enterproid and ReturnPath. Its geo- THE BUSINESS PLAN”? No matter technology may be global—retailers how hard pre-revenue tech 50%DECLINE in search like Walmart use it to push marketing companies haggle with potential messages to consumers’ engine’s stock price investors, their smartphones as they walk by their over the past five valuations are stores—but its years

newscom determined by software, which the “froth of pings 35 Shake Shack interest in the million marketplace,” locations a day, DANNY MEYER’S MADISON SQUARE PARK roadside burger stand is a said Brian Cohen, was perfected fixture of the Silicon Alley tech scene.Techies can lounge anywhere chairman of on New York with free Wi-Fi, including Argo Tea and ’Wichcraft.There’s also early-stage investor consortium the Ace Hotel, SoHo House and City Bakery. And for official New York Angels. Today, City’s streets. meetings, Foursquare shows prominent investors checking in at securing a multimillion-dollar “With so many Friend of a Farmer Café in Gramercy and the Grey Dog near appraisal is easier than ever. people walking Union Square. But it’s no surprise so much networking goes on at “There’s this ease to the sense of around, there’s Shake Shack, where people spend all that time waiting in line. writing checks,” said Mr. Cohen. no better test “There’s not as much pressure on bed than New what the valuation should or York,” said founder and CEO Josh Tech-tonic shifts shouldn’t be.” Rochlin. TECHNOLOGY IS TRANSFORMING NEW Yahoo YORK’S MOST IMPORTANT INDUSTRIES. SKY-HIGH VALUATIONS WHAT NOT TO DO. A lesson to all Natural growth areas for the city’s tech Silicon Alley firms: Don’t execute sector mirror the industries that have long like Yahoo, whose management dominated its economy: media (with 121 $1B problems and failure to carry digital media startups since 2007, Tumblr out a turnaround have long according to the Center for an Urban overshadowed its brilliant core Future), retail (103 e-commerce technology. It has also bitterly startups), advertising tech (63) and $700M disappointed Wall Street: The financial services tech (33). Foursquare company’s stock price has dropped Also: 50% over the past five years. Tumblr TRANSFORMING INDUSTRIES ONE OF THE WORLD’S Startups $700M ZocDoc FASTEST-GROWING SOCIAL- 121 ZocDoc MEDIA COMPANIES 103 , it has ZOCDOC, THE raised $125 million, the 63 SCHEDULING WEBSITE second-largest amount of 33 $500M that matches patients funding of any New York Buddy Media Media Retail Advertising Finance with doctors, has startup. raised the third-largest amount of venture capital—$95 million— Users of any New York upstart since 2007; $75 million of IF THEY’VE COME, YOU BUILD IT … With its dense population of that came in over the past eight postgrads, restaurants, artists, tourists and stores, New York City offers one of the world’s best test beds for technology like social months. VCs consider it a good play media and location-based because services. (See Xtify for an of its example.) Not all users are potential alike, of course. Facebook says to disrupt it has about 900 million global one of the active users, but in the first biggest markets three weeks of April, about of all, 500 million were accessing the health

network via mobile device. buck ennis care. istock 18 | Crain’s New York Business | June 4, 2012 20120604-NEWS--0019-NAT-CCI-CN_-- 5/31/2012 5:41 PM Page 1

REPORT TECHNOLOGY

The next frontier is using data to CEO of Context Matters.“They de- transform industries, like consumer cide based on their risk tolerance.” Big data becomes big business finance, that have so far resisted Making big data pay is not easy.It change. Bill Guard crowd-sources can’t solve every problem or answer credit-card or merchant problems every question. Still, New York has a Continued from Page 15 years, but they worked mostly be- to draw conclusions that are statisti- from sites such as Ripoff unique opportunity, say investors. It Big data—the collection, storage hind the scenes. Companies like cally significant and thereby useful. Report.com and checks not only has the data scientists, many and analysis of the massive amounts Google are built atop big data. But to see if inaccurate or of whom plied their trade on Wall of information being generated by now with more information—much Next frontier fraudulent charges are Street, but it also has the users—ad the Internet and other sources—is of it never available before—and the “ ‘I’m going to sell my data’ is a showing up on its agencies, media companies, becoming (you guessed it) a big busi- cheap storage and computing pow- sorry excuse for a business model,” customers’ credit- publishers—who crave the in- ness, and New York’s tech commu- er that make it economical to store said Mr. Turck. “People overesti- card bills. sights into customer behavior nity a key player in it. In fact, New and crunch it,all kinds of companies mate the amount of money they’re “We unlock the that data can yield. York’s whole ad-tech industry can be are recognizing its value, from Wal- going to make from it, and, at the power of a lot of “The biggest thing thought of as a big-data play, as ad- Mart to Foursquare. end of day,there’s a threshold below siloed data for cus- New York has to offer is tech firms crunch millions of bits of GE said in May it would spend up which data is not very interesting.” tomers,” said Chief buck ennis customers who are will- information to figure out in real time to $1.5 billion buying up small data- In New York, big-data startups Marketing Officer ing to try new things to what ad to serve to which set of eyes. analytics firms. Consulting firm run the gamut of types and industries. Mary Anne Keegan. ‘Now the remain competitive,” said Numerous other startups are using McKinsey last fall said that in com- There are the enablers, such as Mor- In health care, an Roger Ehrenberg, man- data to improve the customer expe- ing years the United States will need tar Data, which provides companies industry ripe for dig- techniques aging partner of IA Ven- rience in financial services, health 1.5 million data scientists, a new cat- with tools to plumb their own data. ital disruption,Con- tures, a venture firm that care, retail and even education. egory of techie who can ask the right Recently funded, Mortar Data has text Matters Inc. are better specializes in big-data questions and build mathematical one customer up and running and collects detailed understood’ companies and even has a Recognizing value models to make sense of big data. more than three dozen on deck wait- clinical trial data to data scientist on staff. “New York is becoming a hub, “We know how to index and store ing to go live.Another enabler,Bit.ly, help drug compa- Hilary Mason, Bit.ly Mortar Data is a case and we have an opportunity to make it and we know the algorithms,” said started out building algorithms to nies make decisions in point. The founders of it much more than it is,” said Matt Hilary Mason, chief data scientist shorten URLs and now is working, about drug develop- the company spent three Turck, a managing director of for New York’s quintessential big- among other things, on a search ment. One client re- months at startup accel- Bloomberg Ventures, adding that data company,Bit.ly,which employs method to detect instantaneously cently asked the erator Tech Stars in Web 3.0 could be the era of big-data seven data scientists, nearly 20% of when millions of people,for example, company to mine data about the cri- Boston,a city that has a healthy sup- startups. It took Mr. Turck just five its 40-member staff. “The mathe- start clicking on a stock symbol or a teria for drug approvals in various ply of data gurus. But they came months to go from zero to 1,300 matical techniques are much better celebrity’s name. That’s information countries to help decide on a course of back to New York to launch the members in the big-data network- understood than 10 years ago.” that people would pay for. action for a particular compound. business.Boston was a good place to ing meetup he started. The cautionary part of the big- CB Insights combs the Web for “You don’t set the strategy,but you make connections, said CEO and Big data is not a new phenome- data phenomenon, of course, is that mentions of private companies to give them an understanding of the co-founder K Young, but New York non. Wall Street quants have been data isn’t an answer in itself. An an- evaluate their creditworthiness for lay of the land and the complexity of is “the place where a lot of our cus- applying their smarts to data for alyst needs to ask the right questions would-be lenders. the choice,”said Yin Ho,founder and tomers will be.” Ⅲ

EARN DOUBLE BUSINESS REWARDS AT TWICE THE CLIP NO OTHER BANK GIVES YOU MORE WAYS TO EARN DOUBLE REWARDS

• Get double miles for everyday banking through August 31, 2012 with Small Business Rewards Checking—earn by writing checks, withdrawing cash, paying bills online, and more.

• Sign up for a SparkSM Miles business credit card and you’ll also earn double miles on every purchase, every day.

• Plus, earn 10,000 bonus miles when you open both accounts.

Visit a branch or morebusinessrewards.com today.

Promotion ends at 11:59 p.m. Eastern Time, August 31, 2012. Offer valid for new banking and Spark Miles credit card customers only. To receive bonus miles, you must open a Small Business Rewards Checking account and obtain a Spark credit card by June 30, 2012. Double miles and bonus miles require an open account at the time of the award and will be awarded within 6-8 weeks after the promotional period ends for every qualifying transaction which occurred during the promotional period. Minimum opening deposit may be required. Transaction and monthly rewards limits apply to checking. Limit one Small Business Rewards Checking and Spark Miles account per customer. Visit a branch for complete details. More ways claim based on Web sites of top 10 U.S. banks in deposits as of January 23, 2012. Offered by Capital One, N.A., Spark Card offered by Capital One Bank (USA), N.A., Member FDIC. © 2012 Capital One. All rights reserved.

June 4, 2012 | Crain’s New York Business | 19 nb23p20-22cl.qxp 6/1/2012 3:19 PM Page 20

EVENT TELECOMMUNICATIONS PUBLIC & LEGAL NOTICES

ACG New York Notice of Qualification of EVEREST Notice of Qualification of Baltoro Notice of Qualification of Wisdom Manufacturing & Logistics Conference ACQUISITION LLC. Authority filed Capital Management LLC. Authority Foods Carmine Street, LLC. App. for Join us for this special event featuring two with Secy. of State of NY (SSNY) on filed with NY Dept. of State on 4/20/12. Auth. filed with Secy. of State of NY different panels of experts and a keynote 33 East 33rd Street 04/04/12. Office location: NY County. Office location: NY County. Princ. (SSNY) on 4/17/12. Off. loc.: NY speaker. One panel will consist of highly New York, NY 10016 LLC formed in Delaware (DE) on bus. addr.: 888 7th Ave., 43rd Fl., NY, County. LLC formed in Delaware recognized operational experts in the 212-532-7400 03/23/12. Princ. office of LLC: 9 W. NY 10019. LLC formed in DE on (DE) on 4/16/12. SSNY designated Manufacturing and Distribution industries, [email protected] 57th St., 43rd Fl., NY, NY 10019. 2/15/12. NY Sec. of State designated as agent of LLC upon whom process while the other panel will have Private Equity SSNY designated as agent of LLC agent of LLC upon whom process against it may be served. SSNY Firm Principals and Investment Bankers who EMERGENCY upon whom process against it may against it may be served and shall shall mail process to: c/o Leith Hill, specialize in getting transactions done in COMMUNICATIONS be served. SSNY shall mail process mail process to: c/o CT Corporation 333 E. 53rd St., Apt. 8H, NY, NY these industries. A Capital Connection lunch SYSTEMS to Attn: John J. Suydam at the princ. System, 111 8th Ave., NY, NY 10011, 10022. DE address of LLC: c/o The will precede the Keynote and the panel dis- SPECIALISTS office of the LLC. DE addr. of LLC: regd. agent upon whom process may Corporation Service Company, 2711 cussions, followed by a Networking Reception. • FREE PICKUP & DELIVERY c/o Corporation Service Co., 2711 be served. DE addr. of LLC: 1209 Centerville Rd., Ste. 400, Wilmington, When: Thursday, June 7, 2012, 12:00 pm. - Centerville Rd., Ste. 400, Wilmington, Orange St., Wilmington, DE 19801. DE 19808. Arts. of Org. filed with DE • 48 HOUR TURNAROUND New Castle Cnty., DE 19808. Arts. of Cert. of Form. filed with DE Sec. of Secy. of State, Townsend Bldg., 7:00 pm. Where: Westchester Country Club, ON REPAIRS Org. filed with The Secy. of State of State, 401 Federal St., Dover, DE Dover, DE 19901. Purpose: any and 99 Biltmore Avenue, Rye, NY 10580. • FREE ENGRAVING the State of DE, Dept. of State, Div. 19901. Purpose: all lawful purposes. all lawful act or activity. General Price : $260 Member Price : $165 • SHORT & LONG TERM of Corps., John G. Townsend Bldg., Register at www.acgnyc.org RENTALS 401 Federal St., Ste. 4, Dover, DE NOTICE OF FORMATION OF Modern OPTIONS CAPITAL MANAGEMENT 19901. Purpose: Any lawful activity. Ideal Development LLC. Arts of Org LLC, a domestic LLC, Arts. of Org. filed with Secy of State of NY (SSNY) filed with the SSNY on 5/4/12. Office VISIT OUR WEBSITE Notice of Qual. of Two Hundred on 4/05/12. Office location: NY County. location: New York County. SSNY is CRAINSNEWYORK.COM Lafayette LLC, Auth. filed Sec’y of SSNY designated as agent upon whom designated as agent upon whom State (SSNY) 1/6/12. Office loc.: NY process may be served and shall process against the LLC may be County. LLC org. in DE 1/5/12. SSNY mail copy of any process against served. SSNY shall mail process to: desig. as agent of LLC upon whom LLC to principal business address: The LLC, 233 W. 83rd St., Apt. 3C, process against it may be served. 1133 Broadway, Ste 706, NY, NY NY, NY 10024. General Purposes. SSNY shall mail copy of proc. to 10010. Purpose: any lawful activity. PUBLIC & LEGAL NOTICES Kushner Companies, 666 Fifth Ave., NOTICE OF FORMATION OF Anthem NY, NY 10103. DE off. addr.: 160 308 EAST 50TH STREET LLC, a Advisory Services LLC. Arts of Org PUBLIC HEARING Greentree Dr., Ste. 101, Dover, DE domestic LLC, Arts. of Org. filed filed with the Secy of State of NY (SSNY) 19904. Cert. of Form. on file: SSDE, with the SSNY on 4/23/12. Office on 09/09/2011. Office location: NY Townsend Bldg., Dover, DE 19901. location: New York County. SSNY is County. SSNY designated as agent Purp.: any lawful activities. designated as agent upon whom upon whom process may be served process against the LLC may be and shall mail a copy of any process NOTICE OF FORMATION OF Belfast served. SSNY shall mail process to: to the principal business address: 88 Boys LLC. Arts of Org filed with Secy Coopersmith & Coopersmith, Attn: Leonard Street, Suite 605, NY, NY of State of NY (SSNY) on 2/13/12. Richard D Coopersmith, 233 10013. Purpose: any lawful act. Office location: NY County. SSNY Broadway, Ste. 1800, NY, NY 10279. designated as agent upon whom General Purposes. MOTOU REALTY, LLC Art. Of Org. process may be served and shall Filed Sec. Of State of NY mail copy of process against LLC to Notice of Formation of 345 PRODUCTIONS, 03/31/2000. Off Loc.: New York Co. principal business address: 232 E LLC. Arts. of Org. filed with Secy. of SSNY designated as agent upon 80th St, Apt 3, NY, NY 10075. State of NY (SSNY) on 04/17/12. whom process against it may be Purpose: any lawful act. Office location: NY County. SSNY served. SSNY to mail copy of designated as agent of LLC upon process to THE LLC, 246 East 44th Notice of Formation of OZ STUDIOS, whom process against it may be Street, New York, NY 10017. LLC. Arts. of Org. filed with Secy. served. SSNY shall mail process to Purpose: Any lawful act or activity. of State of NY (SSNY) on 05/03/12. Kalnick, Klee & Green, LLP, 767 Third Office location: NY County. SSNY Ave., NY, NY 10017-2023. Purpose: Notice of Qual. of Two Hundred designated as agent of LLC upon Any lawful activity. Lafayette Mezzanine LLC, Auth. filed whom process against it may be Sec’y of State (SSNY) 1/6/12. Office served. SSNY shall mail process MODABOUND LLC, a domestic LLC, loc.: NY County. LLC org. in DE 1/5/12. to the LLC, 519 Eighth Ave., 19th Arts. of Org. filed with the SSNY on SSNY desig. as agent of LLC upon Fl., NY, NY 10018. Purpose: Any 2/21/12. Office location: New York whom process against it may be lawful activity. County. SSNY is designated as served. SSNY shall mail copy of proc. agent upon whom process against to Kushner Companies, 666 Fifth NOTICE OF FORMATION OF Beth the LLC may be served. SSNY shall Ave., NY, NY 10103. DE off. addr.: Altschuler Interiors, LLC. Arts of Org mail process to: The LLC, 117 E. 160 Greentree Dr., Ste. 101, Dover, filed with Secy of State of NY (SSNY) 57th St., #38C, NY, NY 10022. DE 19904. Cert. of Form. on file: on 4/24/12. Office location: NY General Purposes. SSDE, Townsend Bldg., Dover, DE County. SSNY designated as agent 19901. Purp.: any lawful activities. upon whom process may be served Notice of Formation of 248 East 83 and shall mail copy of process Street LLC. Arts. of Org. filed with NOTICE OF FORMATION OF against LLC to principal business Secy. of State of NY (SSNY) on Shiftscope Entertainment LLC. Arts address: 150 E 69th St NY, NY 2/9/12. Office location: NY County. of Org filed with Secy of State of NY 10021. Purpose: any lawful act. SSNY designated as agent of LLC (SSNY) on 1/25/12. Office location: Notice of Formation of SOUTHEAST Notice of Qualification of Ria in a Box upon whom process against it may NY County. SSNY designated as TOWERS PRESERVATION, L.P. Cert. LLC. Authority filed with NY Dept. of Notice of Qualification of Commodore be served. SSNY shall mail process agent upon whom process may be of LP filed with Secy. of State of NY State on 2/10/12. Office location: NY Thompson Music LLC. App. for Auth. to: c/o The Torkian Group, 701 served and shall mail copy of (SSNY) on 05/04/12. Office location: County. Princ. bus. addr.: 108 W. 39th filed with Secy. of State of NY (SSNY) Seventh Ave., Ste. 4W, NY, NY process against LLC to principal NY County. Princ. office of LP: 60 St., Ste. 604, NY, NY 10018. LLC on 4/23/2012. Off. loc.: NY County. LLC 10036. Purpose: any lawful activity. business address: 10 Liberty #6F, NY, Columbus Circle, NY, NY 10023. formed in DE on 11/21/11. NY Sec. of formed in Delaware (DE) on 1/7/1981. NY 10005. Purpose: any lawful act. Latest date on which the LP may State designated agent of LLC upon SSNY designated as agent of LLC Notice of Formation of Odin’s dissolve is 12/31/2111. SSNY des- whom process against it may be upon whom process against it may be Hammer, LLC. Arts. of Org. filed with Notice of Formation of Quik Park 485 ignated as agent of LP upon whom served and shall mail process to: c/o served. SSNY shall mail process to: Secy. of State of NY (SSNY) on Garage LLC. Arts. of Org. filed with process against it may be served. CT Corporation System, 111 8th Ave., WPP, 100 Park Ave., 4th Fl., NY, NY 4/30/12. Office location: NY County. Secy. of State of NY (SSNY) on SSNY shall mail process to c/o NY, NY 10011. DE addr. of LLC: c/o 10017. DE address of LLC: United SSNY designated as agent of LLC 5/8/12. Office location: NY County. Corporation Service Co., 80 State The Corporation Trust Co., 1209 Corporate Services, 874 Walker Road, upon whom process against it may SSNY designated as agent of LLC St., Albany, NY 12207. Name and Orange St., Wilmington, DE 19801. Ste. C, Dover, DE 19904. Arts. of Org. be served. SSNY shall mail process upon whom process against it may addr. of each general partner are Cert. of Form. filed with DE Sec. of filed with DE Secy. of State, 401 to: 244 5th Ave., Ste. S-224, NY, NY be served. SSNY shall mail process available from SSNY. Purpose: Any State, 401 Federal St., Dover, DE Federal St., Ste. 4, Dover, DE 19901. 10001, Attn: Simon Czaplinski. to: The LLC, 247 W. 37th St., NY, NY lawful activity. 19901. Purpose: all lawful purposes. Purpose: any lawful activity. Purpose: any lawful activity. 10018. Purpose: any lawful purpose.

Notice of Qualification of Yonkers Notice of Qualification of CMS Multi- Notice of Qualification of Chopper Notice of Qualification of Alden Global Notice of Appl. for Auth. 30 East 20 2012 Associates LLC. Authority filed Purpose Management Fund I LLC. Trading LLC. Authority filed with NY Capital LLC. Authority filed with NY LLC, a foreign limited liability company with NY Dept. of State on 5/14/12. Authority filed with NY Dept. of State Dept. of State on 4/6/12. Office Dept. of State on 3/12/12. Office (LLC). Appl. for Auth. filed with SSNY Office location: NY County. Princ. on 5/10/12. Office location: NY location: NY County. Princ. bus. location: NY County. Princ. bus. 2/1/12. LLC organized in DE 1/27/12. bus. addr.: 832 Germantown Pike, County. Princ. bus. addr.: 120 Wall addr.: 141 W. Jackson Blvd., Ste. addr.: 885 Third Ave., 34th Fl., NY, NY office location: NY County. SSNY Ste. 5, Plymouth Meeting, PA 19462. St., 16th Fl., NY, NY 10005. LLC 2201A, Chicago, IL 60604. LLC NY 10022. LLC formed in DE on designated as agent for process. LLC formed in DE on 8/16/11. NY formed in DE on 2/16/12. NY Sec. of formed in DE on 4/13/05. NY Sec. of 12/28/11. NY Sec. of State designat- SSNY shall mail copy of process to: Sec. of State designated agent of State designated agent of LLC upon State designated agent of LLC upon ed agent of LLC upon whom process c/o Walter & Samuels, Inc., 419 Park LLC upon whom process against it whom process against it may be whom process against it may be against it may be served and shall Avenue South, New York, NY 10016, may be served and shall mail served and shall mail process to: c/o served and shall mail process to: c/o mail process to: c/o CT Corporation attn: Mr. David I. Berley. Office process to: c/o CT Corporation CT Corporation System, 111 8th CT Corporation System, 111 8th System, 111 8th Ave., NY, NY 10011, address of LLC in jurisdiction of System, 111 8th Ave., NY, NY 10011, Ave., NY, NY 10011, regd. agent Ave., NY, NY 10011, regd. agent regd. agent upon whom process may organization: c/o National Registered regd. agent upon whom process may upon whom process may be served. upon whom process may be served. be served. DE addr. of LLC: The Agents, Inc., 160 Greentree Dr., Ste. be served. DE addr. of LLC: 1209 DE addr. of LLC: 1209 Orange St., DE addr. of LLC: 1209 Orange St., Corporation Trust Co., 1209 Orange 101, Dover, DE 19904. A copy of the Orange St., Wilmington, DE 19801. Wilmington, DE 19801. Cert. of Wilmington, DE 19801. Cert. of St., Wilmington, DE 19801. Cert. of Cert. of Form. on file with State of Cert. of Form. filed with DE Sec. of Form. filed with DE Sec. of State, Form. filed with DE Sec. of State, Form. filed with DE Sec. of State, Delaware, Div.of Corp., 401 Federal State, 401 Federal St., Dover, DE 401 Federal St., Dover, DE 19901. 401 Federal St., Dover, DE 19901. 401 Federal St., Dover, DE 19901. Street, Ste. 3, Dover, DE 19901. 19901. Purpose: all lawful purposes. Purpose: all lawful purposes. Purpose: all lawful purposes. Purpose: all lawful purposes. Purpose: Any lawful act or activity.

20 | Crain’s New York Business | June 4, 2012 nb23p20-22cl.qxp 6/1/2012 4:13 PM Page 21

PUBLIC & LEGAL NOTICES

Notice of Qualification of Sixth Notice of Qualification of RESIDUAL Notice of Qualification of HOFFMAN NOTICE OF FORMATION OF AECRE Notice of Appl. for Auth. Opportunity Avenue Restaurant Management ACQUISITIONS GP, LLC. Authority LLOYD LLC. Authority filed with Secy. LLC. Articles of Organization filed with Shoes LLC, a foreign limited liability LLC. Authority filed with NY Dept. of filed with Secy. of State of NY (SSNY) of State of NY (SSNY) on 4/17/12. the Secretary of State of NY (SSNY) company (LLC). Appl. for Auth. filed State on 3/19/12. Office location: NY on 05/04/12. Office location: NY Office location: NY County. LLC on 13th day of February 2012. with SSNY 3/23/12. LLC organized County. Princ. bus. addr.: c/o County. LLC formed in Delaware (DE) formed in Delaware (DE) on 4/13/12. Office location: NEW YORK County. in FL 6/5/03. NY office location: NY BetaWest, Ltd., 1050 17th St., Ste. on 03/26/12. Princ. office of LLC: 575 SSNY designated as agent of LLC SSNY has been designated as agent County. SSNY designated as agent 350, Denver, CO 80265. LLC formed Lexington Ave., Fl. 4, NY, NY 10022. upon whom process against it may be upon whom process against it may for process. SSNY shall mail copy of in DE on 3/9/12. NY Sec. of State SSNY designated as agent of LLC served. SSNY shall mail process to: be served. The Post Office address process to c/o NRAI, Inc., 875 Ave. designated agent of LLC upon upon whom process against it may be 145 Ave. of the Americas, 7th Fl., NY, to which the SSNY shall mail a copy of the Americas, Ste. 501, NY, NY whom process against it may be served. SSNY shall mail process to N.Y. 10013. Address to be maintained of any process against the LLC 10001. The registered agent of the served and shall mail process to: c/o the LLC at the addr. of its princ. office. in DE: c/o GKL Resident Agents, Inc., served upon him/her is: Spiegel & LLC upon whom process against it CT Corporation, 111 8th Ave., NY, DE addr. of LLC: 2711 Centerville Rd., 3500 South Dupont Highway, Dover, Utrera, P.A., P.C. 1 Maiden Lane, may be served is: NRAI.,875 Ave. of NY 10011. DE addr. of LLC: 1209 Ste. 400, Wilmington, DE 19808. Arts. DE 19901. Arts of Org. filed with the NYC 10038, 1 800 576-1100. the Americas, Ste. 501, NY, NY Orange St., Wilmington, DE 19801. of Org. filed with Secy. of State, DE, DE Secretary of State, Division of The principal business address of the 10001. Office address of LLC in Cert. of Form. filed with DE Sec. of 401 Federal St., Ste. 4, Dover, DE Corporations, John G. Townsend Bldg, LLC is: 175 W. 12th Street, Suite FL,8501 NW 17th St., #102, Miami, State, Townsend Bldg., Dover, DE 19901. Purpose: Any lawful activity. 401 Federal Street - Suite 4, Dover, DE 5M, New York, NY 10011. FL 33126. A copy of the Cert. of 19901. Purpose: all lawful purposes. 19901. Purpose: any lawful activities. Purpose: any lawful act or activity. Conv. & Art. of Org. on file with PRESTITO LLC, a domestic LLC, Arts. Florida Dept of State, Div of Corp., NOTICE OF FORMATION of Gropper of Org. filed with the SSNY on 3/15/12. FMUS, LLC, a domestic LLC. Arts. of 410 LAFAYETTE STREET PARKING Clifton Bldg, 2661 Executive Ctr Cr. Law Group PLLC. Article of Office location: New York County. Org. filed with the SSNY on 04/18/2012. LLC, a domestic LLC, Arts. of Org. Tallahassee, FL 32301. Purpose: To Organization filed with the Secretary SSNY is designated as agent upon Office location: NY County. SSNY filed with the SSNY on 4/12/12. engage in any lawful act or activity. of State of NY (SSNY) on 02/16/2012. whom process against the LLC may has been designated as agent upon Office location: New York County. Office location: NY County. SSNY has be served. SSNY shall mail process whom process against the LLC may SSNY is designated as agent upon NOTICE OF FORMATION OF Double been designated as agent upon whom to: The LLC, c/o Antonino D’Aiuto, be served. SSNY shall mail process whom process against the LLC may Flawless LLC. Arts of Org filed with process against it may be served. Esq., 116 W. 23rd St., Ste. 500, NY, to: Roberto Faraone Mennella, 45 W be served. SSNY shall mail process Secy of State of NY (SSNY) on 11/4/11. The Post Office address to which the NY 10011. General Purposes. 54 St, Apt. 10D, NY, NY 10019. to: Gary Spindler, 250 W. 26th St., Office location: NY County. SSNY SSNY shall mail a copy of any process Purpose: Any Lawful Purpose. NY, NY 10001. General Purposes. designated as agent upon whom against the PLLC served upon him is NOTICE OF FORMATION OF IWC process may be served. PO address C/O the PLLC 171 Madison Ave, Ste. Capital Management LLC. Arts of Org Notice of Qual. of Two Hundred SAGA IMAGING LLC, a domestic LLC, to which SSNY shall mail copy of 1002, NY, NY 10016. Purpose of LLC: filed with Secy of State of NY (SSNY) Lafayette Holdings LLC, Auth. filed Arts. of Org. filed with the SSNY on process against LLC: Imeld Vasquez to engage in any lawful act or activity. on 1/4/10. Office location: NY County. Sec’y of State (SSNY) 1/6/12. Office 1/5/12. Office location: New York c/o Legalzoom.com, Inc. 101 N. Street address of Principal Business SSNY designated as agent upon whom loc.: NY County. LLC org. in DE 1/5/12. County. SSNY is designated as Brand Blvd., 11th Fl, Glendale, CA location is: 2171 Madison Ave, Ste. process may be served and shall SSNY desig. as agent of LLC upon agent upon whom process against the 91203. Principal business address: 1002, NY, NY 10016. mail copy of process against LLC to whom process against it may be served. LLC may be served. SSNY shall mail 196 W 10 5C, NY, NY, 10014. principal business address: Matthew SSNY shall mail copy of proc. to process to: Anna M. Boutealis CPA, Purpose: any lawful act. NOTICE OF FORMATION OF rose Wright, 260 Madison Ave, 8th Fl, NY, Kushner Companies, 666 Fifth Ave., 600 Old Country Rd., Ste. 230, Garden crownview LLC. Arts of Org filed NY 10016. Purpose: any lawful act. NY, NY 10103. DE off. addr.: 160 City, NY 11530. General Purposes. Cindy’s N.Y.C. Apartment Rentals with Secy of State of NY (SSNY) on Greentree Dr., Ste. 101, Dover, DE L.L.C. Arts of Org filed Sec. of State 2/23/12. Office location: NY County. Notice of Formation of Goldstein Hall 19904. Cert. of Form. on file: SSDE, Notice of Formation of LS OPPOR- of NY on 5/2/12. Off loc: NY Co. SSNY designated as agent upon PLLC filed under the original name Townsend Bldg., Dover, DE 19901. TUNITY, LLC. Arts. of Org. filed with SSNY designated agent upon whom whom process may be served and David A. Goldstein & Associates, PLLC, Purp.: any lawful activities. Secy. of State of NY (SSNY) on process against it may be served. shall mail copy of process against Art. of Org. filed Sec’y of State (SSNY) 04/23/12. Office location: NY County. SSNY to mail copy of process to the LLC to principal business address: 1/4/06. Office location: NY County. KATARZYNA A. HABERKO LCSW, SSNY designated as agent of LLC address: 531 W 145th St Apt. 21 NY 205 E. 78th St., APT 9B NY, NY SSNY designated as agent of PLLC PLLC, a Prof. LLC. Arts. of Org. filed upon whom process against it may NY 10031. Purpose: any lawful act. 10075. Purpose: any lawful act. upon whom process against it may be with the SSNY on 01/25/2012. Office be served. SSNY shall mail process served. SSNY shall mail copy of process location: New York County. SSNY to Corporation Service Co., 80 State NOTICE OF FORMATION of VIOLATOR/ NOTICE OF FORMATION OF Best to Tesser & Ryan & Rochman, 509 has been designated as agent upon St., Albany, NY 12207-2543, regd. STIMULATED LLC. Arts of Org filed Fest LLC. Arts of Org filed with Secy Madison Ave., NY, NY 10022. Purpose: whom process against it may be agent upon whom and at which with SSNY on 5/1/12. Office location: of State of NY (SSNY) on 2/15/12. to practice the profession of Law. served. SSNY shall mail process to: process may be served. Purpose: NY County. SSNY designated as an Office location: NY County. SSNY Katarzyna A. Haberko, 1701 Earl St., Any lawful activity. agent upon whom process may be designated as agent upon whom Notice of Formation of Celtic on Tour Union, NJ 07083. Purpose: To served. SSNY shall mail process to process may be served and shall LLC. Arts of Org filed with Secy of Practice The Profession Of Lic. Notice of Qual. of Two Hundred the LLC c/o Primary Wave, 116 E mail copy of process against LLC to State of NY (SSNY) on 12/30/11. Clinical Social Worker. Lafayette Kushner Manager LLC, Auth. 16th St, 9th Fl, NY NY 10003. principal business address: 111 E. Office location: NY County. SSNY filed Sec’y of State (SSNY) 1/10/12. Purpose: any lawful act. 2nd St. Apt 3A NY NY 10009. designated as agent upon whom NOTICE OF FORMATION OF Glacier Office loc.: NY County. LLC org. in Purpose: any lawful act. process may be served and shall Capital LLC. Arts of Org filed with DE 1/9/12. SSNY desig. as agent of Notice of Formation of mail copy of process against LLC to Secy of State of NY (SSNY) on LLC upon whom process against it KINGKONGBNB LLC, Art. of Org. RUTENBERG REALTY, LLC, a principal business address: 2109 3/16/12. Office location: NY County. may be served. SSNY shall mail filed Secy. of State of NY (SSNY) on domestic LLC. Arts. of Org. filed with Broadway Ste 13-126 NY NY 10023. SSNY designated as agent upon copy of proc. to Kushner Companies, 5/14/2012. Office location: New York the SSNY on 04/19/2012. Office Purpose: any lawful act. whom process may be served and 666 Fifth Ave., NY, NY 10103. DE off. County . SSNY Designated as agent location: NY County. SSNY has shall mail copy of process against addr.: 160 Greentree Dr., Ste. 101, of LLC upon whom process against been designated as agent upon Notice of Formation of Lawrence Debt LLC to principal business address: Dover, DE 19904. Cert. of Form. on it may be served. SSNY shall mail whom process against the LLC may LLC, Art. of Org. filed Sec’y of State 229 W 60th St, Apt 3R, NY, NY file: SSDE, Townsend Bldg., Dover, DE copy of process to: The LLC, 144 be served. SSNY shall mail process (SSNY) 1/31/12. Office location: NY 10023. Purpose: any lawful act. 19901. Purp.: any lawful activities. Bowery St, 3rd Fl, New York, NY to: Choa Fu Seng, 123 Washington County. SSNY designated as agent 10013. Purpose: any lawful activity. Notice of Qualification of RESIDUAL Notice of Qualification of PLC SEVEN St. Apt 50H, NY, NY 10006. of LLC upon whom process against ACQUISITIONS MANAGEMENT, LLC. SPRINGS, LLC. Authority filed with NOTICE OF FORMATION of Lenox Purpose: Any Lawful Purpose. it may be served. SSNY shall mail Authority filed with Secy. of State of NY Secy. of State of NY (SSNY) on Hill Massage and Physical Therapy, copy of process to NRAI, 875 Ave (SSNY) on 05/04/12. Office location: 05/23/12. Office location: NY County. PLLC. Article of Organization filed with of the Americas, NY, NY 10001. Notice of Qualification of Hedgeforum NY County. LLC formed in Delaware LLC formed in Maryland (MD) on the Secretary of State of NY (SSNY) on Purpose: any lawful activities. Portfolios, LLC. App. for Auth. filed (DE) on 03/26/12. Princ. office of 05/23/12. Princ. office of LLC: 7 03/09/12. Office location: NY County. with Secy. of State of NY (SSNY) on LLC: 575 Lexington Ave., Fl. 4, NY, Spring St., NY, NY 10012. SSNY SSNY has been designated as agent 3/21/12. Off. loc.: NY Cty. LLC formed Notice of Formation of 34TH STREET GP LLC. Arts. of Org. filed with Secy. NY 10022. SSNY designated as designated as agent of LLC upon upon whom process against it may in Delaware (DE) on 3/9/12. SSNY agent of LLC upon whom process whom process against it may be be served. The Post Office address designated as agent of LLC upon whom of State of NY (SSNY) on 05/11/12. Office location: NY County. Princ. against it may be served. SSNY shall served. SSNY shall mail process to to which the SSNY shall mail a copy process against it may be served. SSNY mail process to the LLC at the addr. the LLC at the princ. office of the of any process against the PLLC shall mail process to: c/o Citi Private office of LLC: c/o ID Real Estate Partners, LLC, 450 Seventh Ave., of its princ. office. DE addr. of LLC: LLC. MD addr. of LLC: 526 Penny served upon him is 261 E 78nd St. Advisory, LLC, 666 Fifth Ave., Fl. 12B, 2711 Centerville Rd., Ste. 400, Ln., Cockeysville, MD 21030. Cert. of N.Y., N.Y., 10021. Date of Dissolution: NY, NY 10103. DE address of LLC: c/o NY, NY 10123. SSNY designated as agent of LLC upon whom process Wilmington, DE 19808. Arts. of Org. Form. filed with Paul B. Anderson, by proclamation. Purpose of PLLC: National Corporate Research, Ltd., filed with Secy. of State, DE, 401 Dept. of Assessments and Taxation, provide medical services. Street 615 S. DuPont Hwy., Dover, DE 19901. against it may be served. SSNY shall mail process to the LLC at the Federal St., Ste. 4, Dover, DE 19901. 301 W. Preston St., Baltimore, MD address of Principal Business location Arts. of Org. filed with DE Secy. of Purpose: Any lawful activity. 21201. Purpose: Any lawful activity. is: 261 E 78nd St. N.Y., N.Y., 10021. State, Townsend Bldg., Dover, DE addr. of its princ. office. Purpose: 19901. Purpose: any lawful activity. Any lawful activity.

Notice of Qualification of DIRECTLI LLC. Notice of Qualification of ARTEAST, Authority filed with Secy. of State of LLC. Authority filed with Secy. of Get connected with Crain’s New York Business. NY (SSNY) on 04/24/12. Office State of NY (SSNY) on 04/23/12. location: NY County. LLC formed in Office location: NY County. LLC Delaware (DE) on 03/08/12. Princ. formed in Delaware (DE) on 08/16/05. office of LLC: 1400 Broadway, 15th Princ. office of LLC: 47 Ave. du Bois Fl., NY, NY 10018. NYS fictitious de Boulogne, 92200 Paris, France. Promote your product or service to NY’s decision makers with an affordable name: DIRECT FOR HER LLC. SSNY NYS fictitious name: ZVWEB, LLC. designated as agent of LLC upon SSNY designated as agent of LLC business card size ad in our Business Connections section. whom process against it may be upon whom process against it may be Issue Dates for Business Connections: served. SSNY shall mail process to c/o served. SSNY shall mail process to Corporation Service Co., 80 State St., c/o Corporation Service Co., 80 State Crain’s Fast Fifty (6/25), City Facts (8/27), & Book of Lists (12/24) Albany, NY 12207-2543. DE addr. of St., Albany, NY 12207-2543. DE addr. LLC: 2711 Centerville Rd., Ste. 400, of LLC: 2711 Centerville Rd., Ste. 400, For more information on this powerful opportunity to showcase your business, Wilmington, DE 19808. Arts. of Org. Wilmington, DE 19808. Arts. of Org. filed with DE Secy. of State, 401 filed with Secy. of State of the State of contact Joanne Barbieri at 212-210-0189 or [email protected] Federal St., Ste. 4, Dover, DE 19901. DE, 401 Federal St., Ste. 4, Dover, DE Purpose: Any lawful activity. 19901. Purpose: Any lawful activity. Let Crain’s New York Business help you secure new clients in 2012.

June 4, 2012 | Crain’s New York Business | 21 20120604-NEWS--0022-NAT-CCI-CN_-- 6/1/2012 1:19 PM Page 1

NEIGHBORHOOD JOURNAL REBORN PROPERTIES Harlem’s wary eye on 125th St. growth

site on the corner of Park Avenue Marcus Samuelsson’s well-regarded a community improvement organi- New projects in the was to house a high-rise that was to Red Rooster restaurant on Lenox zation,said,“125th Street is no longer works, but area has include a Marriott hotel. Avenue and Aloft Harlem, the an option for small businesses.” Today the lot sits vacant, as do a neighborhood’s first hotel in more Sheer bad timing has also hurt heard it all before half-dozen others on the strip run- than 45 years,one block south,along 125th Street.The same year that the Sites where work has begun or is ning from Lexington to Morning- Frederick Douglass Boulevard. city rezoned the street to encourage planned to do so side avenues—many of them prime more high-rise development, the fi- ● BY AMANDA FUNG Not even Bill Clinton 121 W. 125th St.: Cultural/office corner sites.They are reminders of a nancial crisis exploded. space long string of development failures, Experts say that despite high “After the economic downturn, ● ast month, the city offi- as well as an active impediment to foot traffic and 10 years in which everything came to a standstill,”said 260 W. 125th St./Mart 125: Retail/office/cultural space cially began the search future plans. former President Bill Clinton had Barbara Askins, chief executive of for a developer to trans- “The 125th Street corridor can’t an office for his foundation at 55 W. the 125th Street Business Improve- ● 301 W. 125th St.: Four-story retail form a 450-car parking see its full potential if the majority of 125th St., the thoroughfare has yet ment District, who added that signs complex garage on West 125th the lots are still vacant,”said Paimaan to become a shopping or dining des- of “movement” are at last emerging. ● 461 W. 125th St./Taystee LStreet, just down the road from Lodhi, district manager of Commu- tination—much less a street that can Plans for a shopping center at Bakery: Office/industrial complex Harlem’s famed Apollo Theater, nity Board 10, which covers the area. attract big office tenants. Frederick Douglass Boulevard are into a 42,000-square-foot retail, of- Currently, the predominantly “People will build when they find back on track under a new developer, fice and cultural complex.The move low-rise thoroughfare is crowded a committed tenant,” said Shimon with work expected to be completed Seth Pinsky, president of the city’s came on the heels of similar with fast-food restaurants, includ- Shkury, president of Ariel Property on the 100,000-square-foot complex Economic Development Corp. announcements that work would ing two McDonald’s. Although the Advisors. “Right now there isn’t by year’s end. Officials also point to Farther west, the developer begin shortly on two other fallow street got a new $66 million shop- enough office space in this area to work having started on a hotel and tapped for the block-long city- city-owned sites. ping and entertainment complex tell you there is a market.” residential complex on the site of the owned Taystee Bakery site hopes to Residents and landowners alike, with a Magic Johnson multiplex Meanwhile, many interesting vaudeville-era Victoria Theater. begin building a 328,000-square- however, can be forgiven for taking movie theater in 2000, and eight small shops have been forced onto the Meanwhile, across the street foot office and industrial complex all this skeptically.Over the past five years later an outpost of trendy side streets by rents that have been from the Apollo Theater,the single- known as Create @ Harlem Green. years, a series of bold projects have clothier H&M, the strip still lacks driven sky-high by the big chains. story Mart 125 is being eyed for a Meanwhile, a redevelopment of been unveiled for sites along 125th the vibrant mix of trendy shops and Despite a sluggish economy, average 67,000-square-foot cultural and the abandoned Corn Exchange Street,but most have gone nowhere. restaurants, hip bars and hotels that store rents this spring reached $121 commercial complex.The city is ex- Building on Park Avenue into a re- Most famously, that list includes have featured in architects’ render- per square foot,up 17% from the same pected to select a developer soon. tail property is awaiting Landmarks Vornado Realty Trust’s plans for a ings of the area for years. time in 2007, according to the Real “Our expectation is that as the Preservation Commission approval. 600,000-square-foot office build- Some of the more popular non- Estate Board of New York. market sees successful development “We have seen some construc- ing with Major League Baseball as chain establishments in the area are Nikoa Evans-Hendricks, execu- on city-owned sites, we will start to tion activity,” said Mr. Lodhi. “It is its anchor tenant. Earlier, that same off 125th Street. Among them are tive director of Harlem Park to Park, see movement on other sites,” said encouraging.” Ⅲ

PUBLIC & LEGAL NOTICES

Notice of Qual. of Laight Street Notice of Qual. of Irongate Management, Notice OF FORMATION OF The Notice of Qualification of Back Brook Notice of Qualification of Qship LLC. Project Owner LLC, Auth. filed Sec’y LLC with a fictitious name of Irongate Physical Therapy Practice PLLC. Masonry LLC. Authority filed with Authority filed with NY Dept. of State of State (SSNY) 1/5/12. Office loc.: NY Property Management, LLC, Auth. Arts of Org filed with Secretary of Secy. of State of NY (SSNY) on on 5/3/12. Office location: NY County. County. LLC org. in DE 1/3/12. SSNY filed Sec’y of State (SSNY) 1/6/12. State of NY (SSNY) on 3/9/12. 4/26/12. Office location: NY County. LLC formed in DE on 4/30/12. NY desig. as agent of LLC upon whom Office loc.: NY County. LLC org. in Office location: NY County. SSNY LLC formed in New Jersey (NJ) on Sec. of State designated agent of process against it may be served. DE 11/14/11. SSNY desig. as agent designated as agent upon whom 2/2/11. SSNY designated as agent of LLC upon whom process against it SSNY shall mail copy of proc. to of LLC upon whom process against process may be served and shall LLC upon whom process against it may may be served and shall mail process Taconic Inv. Partners, 111 Eighth Ave., it may be served. SSNY shall mail mail copy of process against PLLC be served. SSNY shall mail process to the principal business addr.: 424 NY, NY 10011, the Reg. Agt. upon copy of proc. to NRAI, 875 Ave of to principal business address: The to: The LLC, 239 Homestead Rd., West End Ave. Apt. 7K, NY, NY 10027, whom proc. may be served. DE off. the Americas, NY, NY 10001. DE off. Physical Therapy Practice PLLC, 361 Unit 2, Hillsborough, NJ 08844, also Attn: Anthony Lage. DE addr. of LLC: addr.: 160 Greentree Dr., Ste. 101, addr.: 160 Greentree Dr., Ste. 101, W 30 St, Apt 1B, NY, NY 10001. the principal office address. Arts of 1209 Orange St., Wilmington, DE Dover, DE 19904. Cert. of Form. on Dover, DE 19904. Cert. of Form. on Purpose: any lawful act. Org. filed with the NJ State Treasurer, 19801. Cert. of Form. filed with DE Sec. file: SSDE, Townsend Bldg., Dover, DE file: SSDE, Townsend Bldg., Dover, Dept. of Treasury, 33 West State St., of State, 401 Federal St., Dover, DE 19901. Purp.: any lawful activities. DE 19901. Purp.: any lawful activities. Notice of Formation of A Canaan LLC, 5th Fl., Trenton, NJ 08646. Purpose: 19901. Purpose: all lawful purposes. Art. of Org. filed Secy. of State of NY any lawful activities. ROBERT ROSENBERG LLC, a Notice of Formation of FEDCAP (SSNY) on 3/9/2012. Office location: NOTICE OF FORMATION OF BIZ domestic LLC, Arts. of Org. filed with SECURITY SERVICES, LLC. Arts. of New York County . SSNY Designated M&K NY LLC Articles of Org. filed ENTERPRISES LLC. Arts of Org filed the SSNY on 4/16/12. Office location: Org. filed with Secy. of State of NY as agent of LLC upon whom process NY Sec. of State (SSNY) 2/23/2012. with Secy of State of NY (SSNY) on New York County. SSNY is designated (SSNY) on 04/20/12. Office location: against it may be served. SSNY shall Office in NY Co. SSNY desig. agent 4/24/12. Office location: NY County. as agent upon whom process against NY County. SSNY designated as mail copy of process to: The LLC, of LLC upon whom process may be SSNY designated as agent upon the LLC may be served. SSNY shall agent of LLC upon whom process 154 W 29th St, New York, NY 10001. served. SSNY shall mail copy of whom process may be served and mail process to: DDK & Company against it may be served. SSNY shall Purpose: any lawful activity. process to 31 Jane St., NY, NY 10014, shall mail copy of process against LLP, One Penn Plaza, 54th Fl., NY, NY mail process to the LLC, 211 West, which is also the principal business LLC to principal business address: 10119. General Purposes. 14th St., NY, NY 10011. Purpose: NOTICE OF FORMATION OF LVK LLC. location. Purpose: Any lawful purpose. 250 W 16th St, #4D, NY, NY 10011. Any lawful activity. Arts of Org filed with Secy of State of Purpose: any lawful act. ENERGY ACCESS LLC filed Arts. of NY (SSNY) on 3/20/12. Office location: NOTICE OF FORMATION OF MISJAY Org. with the Sect’y of State of NY MIXED NUTZ PRODUCTIONS, LLC, NY County. SSNY designated as HOLDING LLC. Arts of Org filed with Notice of Formation of LFCI Capital (SSNY) on 3/20/2012. Office location, a domestic LLC, Arts. of Org. filed agent upon whom process may be Secy of State of NY (SSNY) on NYC LLC, Art. of Org. filed Sec’y of County of New York. SSNY has with the SSNY on 1/26/12. Office served and shall mail copy of process 4/16/12. Office location: NY County. State (SSNY) 12/20/11. Office location: been designated as agent of the LLC location: New York County. SSNY is against LLC to principal business SSNY designated as agent upon NY County. SSNY designated as agent upon whom process against it may designated as agent upon whom address: 221 E. 33rd St, #6H; NY, NY whom process may be served and of LLC upon whom process against it be served. SSNY shall mail process process against the LLC may be 10016. Purpose: any lawful act. shall mail copy of process against may be served. SSNY shall mail copy to: The LLC, 80 Wall Street, NY NY served. SSNY shall mail process to: LLC to principal business address: of process to 207 W. 75th St., NY, NY 10005. Purpose: any lawful act. The LLC, 15 Maiden Ln, Ste 1108, Notice of Formation of LLC CineScope, 42 Morton St, #18, NY NY 10014. 10023. Purpose: any lawful activities. NY, NY 10038. General Purposes. LLC. Articles of Organization filed Purpose: any lawful act. NOTICE OF FORMATION OF Law with the Secretary of State of NY on NOTICE OF FORMATION OF Pure Offices of Charlene Caprio, PLLC. Notice of Formation of DAUNTLESS 3/13/12. Location: New York County. NOTICE OF FORMATION OF Development LLC. Arts of Org filed Arts of Org filed with Secy of State PRODUCTIONS LLC. Arts. of Org. SSNY has been designated as an VASCULARSOURCE, LLC. Arts of with Secy of State of NY (SSNY) on of NY (SSNY) on 2/13/12. Office filed with Secy. of State of NY agent upon whom process against it Org filed with Secy of State of NY 2/16/12. Office location: NY County. location: NY County. SSNY designated (SSNY) on 04/23/12. Office location: may be served. The address to (SSNY) on 01/25/12. Office location: SSNY designated as agent upon as agent upon whom process may be NY County. Princ. office of LLC: 50 which the SSNY shall mail a copy of NY County. SSNY designated as whom process may be served. PO served. PO address to which SSNY Murray St., #509, NY, NY 10007. any process against the LLC served agent upon whom process may be address to which SSNY shall mail copy shall mail copy of process against LLC: SSNY designated as agent of LLC upon him/her is 609 Greenwich St, served and shall mail copy of process of process against LLC: US Corp US Corp Agents, Inc., 7014 13th Ave, upon whom process against it may 4th floor, New York, NY 10014, same against LLC served to principal Agents, Inc., 7014 13th Ave, Ste 202, Ste 202, Bklyn, NY 11228. Principal be served. SSNY shall mail process as the principal business address. business address: c/o George J. Todd, Bklyn, NY 11228. Principal business business address: 49 Park Ave, 4D, NY, to the LLC at the addr. of its princ. Purpose of LLC: video camera 1000 Tenth Ave. NY, NY 10019. address: 70 Pine St, 63rd Fl, NY, NY, NY 10016. Purpose: to practice law. office. Purpose: Any lawful activity. equipment financing. Purpose: any lawful act. 10270. Purpose: any lawful act.

22 | Crain’s New York Business | June 4, 2012 20120604-NEWS--0023-NAT-CCI-CN_-- 6/1/2012 7:06 PM Page 1

oped by others, moved on to build- ambitious and think big, well be- abandon its Walmart dalliance. ing it himself and eventually gradu- yond just our developments,” Mr. Related’s role as the city’s most It’s all Related ated to market-rate housing, retail Ross said.Today the company owns prolific developer is still evolving. and office buildings. and operates $15 billion in assets, Although the company is at the Continued from Page 1 lots just west of Citi Field, on land Related’s rise hasn’t always been with another $17 billion in the forefront of potentially lucrative “What makes them unique is leased by the Mets. The retail proj- steady. It fell on hard times during pipeline in the city alone. projects, it faces tremendous uncer- they have a tremendous propensity ect, the thinking goes, will generate the early 1990s recession and was tainty. At Willets Point, scrappy to take on non-as-of-right projects economic activity and interest that “on the brink of oblivion,”according Long-term prospects property owners have delayed the and to engage with government in a will allow for higher rents when the to a 1995 Crain’s article.Mr.Ross re- Mr. Ross believes Related’s suc- project for years, and some experts collaborative way,” said Jed Walen- housing is built starting in 2025. It’s structured $100 million in unse- cess is tied to New York’s long-term question whether a huge mall will tas,principal of Two Trees Manage- chancy—the cleanup is incredibly cured debt and sold about 30% of prospects. He’s part of a team that’s succeed near Citi Field. The ment Co., referring to projects re- complicated,and the builders agreed the company to friends and family building middle-income housing at Moynihan Station project has yet to quiring political approval. to pay a $35 million fine if the for about $40 million (he later Hunter’s Point South in Long Is- be built. Related signed luxury That has led to sneers housing construction doesn’t bought it back).But when the econ- land City, Queens, and is working goods maker Coach to anchor its from critics that Related begin by 2025—but Related omy turned and demand surged in with 32BJ SEIU to get the city to first tower at Hudson Yards, but it succeeds because it is a fa- puts a price on risk in a way Manhattan, his portfolio soared in develop more affordable housing. still must secure tenants that would vored developer of the that would make many devel- value, and he had the resources to “You have to continuously find ways allow it to build two $800 million Bloomberg administration, opers’ heads spin. make bigger plays—like his career- to enrich the city,” he said. “If the platforms crucial to the bulk of the a charge fueled by Mr. Ross’ At Hudson Yards on the defining move to develop Time city does well, we all do well.” project. A handful of developers are close ties to former Deputy far West Side, Related took Warner Center at Columbus Circle. Investors’ faith in Related has fu- competing for the same small pool Stephen Ross Mayor Dan Doctoroff. But essentially the same $1 billion Unlike many New York City de- eled its growth. Goldman Sachs, of mega-tenants. interviews with two dozen deal from the government velopers, Related isn’t a family firm Michael Dell’s MSD Capital and Related’s negotiations with real estate and government that Tishman Speyer had just or an investment trust.Mr.Ross,72, sovereign wealth funds from Abu unions to reduce construction costs insiders revealed a company abandoned. As in the Willets has two partners: Mr. Blau, now 44, Dhabi, Kuwait and Saudi Arabia are complex and intense. It wants that has built a competitive case, Related tweaked the who handles financing and deal sank $1.4 billion in equity and debt Hudson Yards to be union-built but advantage mostly by taking agreement to make it work for structures, and Bruce Beal Jr., 42, into Related in 2007 for a 25% stake hasn’t ruled out using some on challenging projects and both sides. Similarly, instead who takes care of project planning, in the company—the first outside nonunion workers if it doesn’t get learning from each how to of telling the state that its plan building costs and execution. The investment in Related. Some three the savings it wants. It put labor better execute the next. Jeff Blau to have developers build two private company’s more than 2,000 years later, Oxford Properties costs under a microscope to make its “Their lack of fear of pub- towers above Moynihan Sta- employees receive equity stakes in Group, the real estate arm of one of MiMa development on West 42nd lic process, bureaucracy and tion was too expensive,Relat- projects on which they work. Canada’s largest pension plans, Street happen and is trying to repli- unions is what allows them to ed and Vornado Realty Trust “A lot of our success has to do bought a 50% stake in Hudson Yards cate that process on a grand scale. be the player they are,” said proposed to transfer air rights with the way Stephen originally set for a commitment of $475 million. Paul Fernandes, chief of staff at former city Housing Com- to a nearby site that would be up the company,” said Mr. Blau, the “We’ve been very impressed with the Building and Construction missioner Rafael Cestero, cheaper to develop. president. “People join Related and their track record in executing com- Trades Council of Greater New president of the Community Related was also first to they know it’s a meritocracy.We hire plex projects in New York and else- York, characterized the conversa- Preservation Corp. “Too of- recognize the potential for the best and the brightest, train where,” said Blake Hutcheson, Ox- tions as “a genuine effort to figure ten, the larger development Bruce Beal Jr. big-box retail in the outer bor- them and allow them to grow.” ford’s chief executive. “There are a out how we resolve these issues to companies get scared of that.” oughs, partnering with the It’s also obsessed with growth.In handful of visionaries, and I would get their project built.” At Willets, Related didn’t offer city and state on projects in Queens, 2006, Related bought luxury fitness classify Steve as one of those.” Another cloud on the company’s quite what the city wanted. The the Bronx and Brooklyn. chain Equinox. Earlier this year, it But that track record is far from horizon is the departure in 2014 of cleanup costs at the highly contam- bought a stake in Danny Meyer’s perfect. It withdrew a plan for a BJ’s Mayor Michael Bloomberg, whose inated site were enormous,and rents Working with government catering company, Union Square Wholesale Club in the Bronx rather view of the city and penchant for big for the 400 proposed apartments “Not many people would have Events.Related launched a business than face defeat by the City Council. projects has meshed perfectly with wouldn’t justify the expense. But said, ‘We can put big-box along the that manages $1.5 billion of capital City planners shot down its plan for Related’s.But the developer—clear- Related knew the mayor’s office Belt Parkway in East New York’in the for sovereign wealth funds, public an 1,800-seat theater for Cirque du ly—has shown an ability to adapt. needed to get something done. late 1990s,” Mr. Cestero said. “They pension plans and endowments. It Soleil on West 42nd Street. The “We continually question the Instead of asking for additional had the vision and foresight to do does more than 80% of its business council rejected its plan to turn the way we do things and take the time subsidies or for the city to maintain that. And it’s been wildly successful.” in New York City but also has proj- Bronx’s vast Kingsbridge Armory to really understand what makes up liability for the contaminated land, Related’s willingness to engage ects in Miami, Chicago, Los Ange- into a mall. every component of our develop- Related forged a partnership with with government dates back to the les and other U.S. cities, as well as Related has failed to close the ments,” said Mr. Beal, Related’s ex- Sterling Equities, which is con- company’s infancy. Mr. Ross first operations in China, Brazil and the deal on a Walmart in East New York ecutive vice president.“It’s about the trolled by Mets owners Fred Wilpon emerged as an affordable-housing United Arab Emirates. It even has a despite reports that it was in ad- details, getting into the weeds on and Saul Katz.They proposed to de- developer—perfect training for company in China that lowers costs vanced lease negotiations a year ago. every aspect.” Ⅲ lay the housing and first build a 1 learning to navigate mazes of ap- by sourcing materials like stone, And now, with its Willets Point million-square-foot retail and enter- provals and incentives. He sold in- moldings and wood there. project likely to require City Coun- LISTEN to a discussion at tainment complex on the parking terests in subsidized housing devel- “We continue to be extremely cil approval, it might be forced to CrainsNewYork.com/podcasts

search firm NPD Group Inc. Bono- who realize that’s the trend and on an upper floor with cheaper rents. From e-tail to retail bos has gained even more customers that’s what men want,” said Additional locations are planned for through its partnerships with popu- Sucharita Mulpuru, an analyst at the Palo Alto office, as well as for lar brands such as Gant and Jack Forrester Research. Chicago,Washington,D.C.and San Continued from Page 1 tuxedos is also underway for the Spade. In addition, by offering free To stay ahead of the curve, Mr. Francisco later this year. they’re scooping them up, to the brand, which started out hawking returns, an easily navigable website Dunn has decided to use a “retro” “We were kidding ourselves company’s advantage. chinos but has recently become and knowledgeable customer service idea—going brick-and-mortar. In thinking the only way to offer this was “We’re incredibly fired up,” said more of a lifestyle label. “ninjas” to consult on fit, the brand April, Bonobos entered into a part- online—sometimes you want to try Bonobos Chief Executive Andy “They found a niche in the mar- has made itself even more appealing. nership with Nordstrom, when the and touch and feel it,”Mr.Dunn said. Dunn, speaking via phone last week ket and went after it,” said Michael “They’ve taken the sting out of 111-year-old Seattle company led a Though the Bonobos brand from Malayasia, where some of his Fisher, menswear editor at trend- the online shopping experience,”said $16.4 million investment round in originated with pants, it now sells factories are housed.“We’re figuring forecasting firm StyleCaster. “A retail consultant Matt Hogan, the e-tailer. Bonobos soon began everything from customized $1,100 out the retail brand of the future.” man is really loyal when it comes to adding that Bonobos has a relentless selling at 20 select Nordstrom out- tuxedos to $125 jeans produced in Part of that future means expand- finding something he likes.” social-media presence on Facebook posts, and an expansion into anoth- North Carolina.Both items,recent- ing Bonobos—which made its chim- Such loyalty has paid off hand- and Twitter that personifies the label. er 80 stores is planned for this fall. ly added to the roster,have been sell- panzee-evoking name serving afflu- somely for Bonobos. It raked in Of course,Bonobos has its share of ing well, he reported. ent young professionals online—into about $20 million in revenue last hurdles. Mr. Dunn noted that the Future expansion The company’s two top-selling physical retail space. After opening year, more than double that of 2010, competition from other e-commerce The company is also expanding products are both denim. Casual the fifth-floor shop last fall at its according to sources. It also has re- firms has made finding viable engi- on its guideshop gimmick, where button-down shirts, also added last headquarters, where customers can ceived $43 million in startup funding neers difficult. In addition, other customers get a one-on-one fitting year,will eventually represent a quar- try on and order merchandise, Bono- from such top venture capital firms as clothiers have been paying attention with a consultant. What they like, ter of sales, Mr. Dunn predicted. bos is now planning to launch a sec- Lightspeed Venture Partners and to its success and could begin to im- they can order online.After opening Meanwhile,he’s experimenting with ond store in Manhattan next month Accel Partners. The clothier now plement such initiatives as well. the store at its West 25th Street mass-customization online by re- as part of a national rollout this year. employs 92 staffers,including 10 in a There are only so many fits a brand headquarters, Bonobos launched a searching the use of 3-D body scans. new office in Palo Alto, Calif. can offer, after all. location in Boston. Catherine Moellering, executive Nordstrom deal Some of Bonobos’ success lies in Some analysts doubt Bonobos, Next month, another outpost, vice president of the Tobe Report, a The expansion comes on the its timing. With more men concen- like many of its digital startup ranging from 600 to 1,000 square trend forecaster, is impressed:“They heels of a multimillion-dollar deal trating on their sartorial and groom- brethren, is profitable. Mr. Dunn feet,is scheduled to open in Manhat- started with basics,then fashion bot- to sell Bonobos wares at Nordstrom ing habits,sales of men’s apparel grew declined to say. tan—Mr. Dunn is eyeing SoHo, the toms, now oxford shirts—they’ve department stores. A move to ex- 4% last year, compared with 3% for “The question is how much more West Village and the meatpacking done a good job of expanding this pand into offerings from denim to women’s clothing, according to re- time you have before you get others district. The spot will most likely be brand in a way that is logical.” Ⅲ

June 4, 2012 | Crain’s New York Business | 23 20120604-NEWS--0024-NAT-CCI-CN_-- 6/1/2012 3:26 PM Page 1

Peter Solomon is particularly en- joying the shifting wind. In recent Big banks losing grip on M&A biz months,his 23-year-old eponymous SEEING A SHRINK boutique has grabbed a host of top- Continued from Page 1 M&A fees account for a small of bigger bonuses and less scrutiny shelf clients from big banks. It ad- LARGER BANKS’ M&A to a report last week from Sanford part of the big banks’overall business, than what they get working at places vised J.C. Penney on its investment FEE MARKET SHARE C. Bernstein & Co. During the generating only about 7% of Gold- now popularly derided as the “vam- in Martha Stewart Living Omnime- 2007 2012* same period, small firms that spe- man’s revenue last year, for instance. pire squid” or the “London whale.” dia, Sony on its $2.2 billion acquisi- cialize in M&A advice, such as Pe- But M&A work ranks among Wall Still, such defections occurred tion of EMI Music Publishing, and Goldman Sachs 13.5% 8.6% ter J. Solomon & Co., Centerview Street’s most profitable activities. At for more than 20 years without Home Depot on the purchase of an JPMorgan 9.9% 8.2% Partners and Evercore Partners, M&A specialist Lazard, return on costing the big banks any meaning- e-commerce concern. have more than doubled their mar- equity last year was 26%, seven times ful amount of business. The differ- “We’d been calling on Home Morgan Stanley 9.0% 7.3% ket share, to 17%. higher than at Goldman. ence now, Bernstein analyst Brad Depot for 15 years,” said Mr. BofA Merrill Lynch 9.8% 4.7% “This trend will continue, and I Hintz wrote in last week’s report, is Solomon, who got his firm’s foot in don’t think there is any going back,” Seeking alternatives the “franchise reputation” of the big the door by writing a letter offering SMALLER BANKS’ M&A said Charles Stonehill, a managing For Goldman and others, busi- banks.That’s another way of saying advice to former Home Depot CEO director at recruiting firm RSR ness has eroded in part because so the accumulated years of bad pub- Robert Nardelli. What really seems FEE MARKET SHARE Partners and a former senior invest- many well-connected dealmakers licity and scandal are driving corpo- to have won over the giant retailer 2007 2012* ment banker at Morgan Stanley, have fled for smaller, more nimble rate leaders to seek alternatives to was dealmaker Richard Brail, an 18- Credit Suisse and Lazard. competitors that offer the prospect the big banks they’ve long relied on. year veteran of Morgan Stanley who Lazard 3.1% 3.9% Evercore 1.1% 3.2% Moelis & Co. 0.1% 2.5% Centerview 0.3% 1.6%

* Through May 30 Source: Sanford C. Bernstein & Co.

joined Solomon in 2009.Home De- pot wouldn’t comment. “Our talent is as broad and deep as the other guys’,” said Mr. Solomon, whose firm has grown to nearly 70 employees, from 41 in 2008. “Our small size used to be a barrier against hiring us. Not anymore.” Helping the smaller fry is the fact that corporations aren’t interested in some of the key services offered by the giant banks. Because many big companies are stuffed with cash,they aren’t turning to big banks for financ- ing, for example. Additionally, the ugly side of working with big banks Savvy investors are going places – got a full public airing earlier this year when a Delaware judge blistered namely Indonesia, Vietnam and Turkey. Goldman for what he described as multiple conflicts of interest in its role arranging the sale of a client, en- You don’t have to be on the trading floor to know that the emerging ergy company El Paso Corp. markets are changing the world economy. HSBC has global expertise and A smaller pie local solutions, which allow you to access opportunities in the developed, emerging and soon-to-be emerging markets.1 The judge deemed Goldman’s efforts to mitigate its conflicts “not Does your portfolio cover these growing markets? effective” and questioned whether

2 the bank got the best price for El Fund an investment account as an HSBC Premier client today. Paso, which was acquired by a rival Call 866.959.8657 or visit hsbcpremierusa.com/wealth. in which Goldman owned a 19% stake and controlled two board seats. Additionally, Goldman’s lead adviser to El Paso failed to tell the client that he owned $340,000 worth of shares in the acquirer. Of course, the rise of the bou- tiques comes as they and the big banks fight over a smaller pie. Wall Street generated $9 billion in fees last year from advising North HSBC Securities (USA) Inc. American companies on mergers, according to research firm Dealog- Investments and Annuity products are provided by Registered Representatives and Insurance Agents of HSBC Securities (USA) Inc., member NYSE/ FINRA/SIPC, a registered Futures Commission Merchant, a wholly-owned subsidiary of HSBC Markets (USA) Inc. and an indirectly wholly-owned subsidiary ic, down about a third from 2007. of HSBC Holdings plc. In California, HSBC Securities (USA) Inc., conducts insurance business as HSBC Securities Insurance Services. License #: 0E67746. Still, even in a down market, Investments and Annuity products: boutique bankers on the whole seem to fare significantly better. While ARE NOT A BANK DEPOSIT OR ARE NOT INSURED ARE NOT GUARANTEED OBLIGATION OF THE BANK OR ARE NOT FDIC INSURED BY ANY FEDERAL BY THE BANK OR ANY MAY LOSE VALUE the average Goldman employee saw ANY OF ITS AFFILIATES GOVERNMENT AGENCY OF ITS AFFILIATES his or her pay drop by 15% last year, to $367,000, at M&A specialist All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor. Greenhill & Co.,average pay rose by 1 International investing involves a greater degree of risk and increased volatility that is heightened when investing in emerging or frontiers markets. Foreign 4%, to $515,000. As long as that securities can be subject to greater risks than U.S. investments, including currency fluctuations, less liquid trading markets, greater price volatility, political and economic instability, less publicly available information, and changes in tax or currency laws or monetary policy. particular trend holds, expect more 2To qualify for an HSBC Premier relationship, you need to open a Premier checking account and maintain $100,000 in combined U.S. personal deposits and/or big-time dealmakers to find their investment balances. Business owners may use their commercial balances to qualify for a personal Premier relationship. A monthly maintenance fee of $50.00 will way into boutiques. be incurred if minimum balance requirements are not maintained. You have up to 90 days after account opening to meet the full $100,000 balance requirement. “Goldman Sachs and Morgan United States persons (including U.S. citizens and residents) are subject to U.S. taxation on their worldwide income and may be subject to tax and other filing Stanley are wonderful training obligations with respect to their U.S. and non-U.S. accounts — including, for example, Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts grounds for us,” Mr. Solomon (“FBAR”)). U.S. persons should consult a tax advisor for more information. Ⅲ Deposit products in the U.S. are offered by HSBC Bank USA, N.A. Member FDIC. crowed. ©2012 HSBC Securities (USA) Inc. LISTEN to a discussion at CrainsNewYork.com/podcasts

24 | Crain’s New York Business | June 4, 2012 20120604-NEWS--0025-NAT-CCI-CN_-- 6/1/2012 1:04 PM Page 1

89% of professionals can’t finish all the tasks on their daily to-do list USINESS IVES Source: LinkedIn global survey BHOT JOBS L EXECUTIVE GETTING AROUND: Jim O’Connell, INBOX NASCAR’s chief sales officer, is on the PROSECUTOR road about three Anne Fisher days a week. AGENCY The Civilian Complaint Review Board Better pay JOB DESCRIPTION Try NYPD disciplinary cases as an admini- for nonprofits strative prosecution unit member THIS MONTH, Echoing Green will MOST IMPORTANT TASKS award $2 million in seed capital Preparing cases for trial; preparing to 20 fledgling social all legal documents; participating entrepreneurs. For the past 25 in CCRB investigations years, the nonprofit—an offshoot CREDENTIALS NEEDED of Manhattan-based global Admission to the NYS bar; at private equity firm General least six years’ relevant Atlantic—has invested about $31 experience, including trial million in more than 500 social experience; NYS residency enterprises around the world, SALARY $80,000-$90,000 including some notable success RECRUITER Internal stories like Teach for America. Dave Hodgson, a General DOWNSIDE Handling sensitive Atlantic managing director who and sometimes controversial legal issues co-founded Echoing Green in 1987, talked to us recently. UPSIDE Challenging environment in the largest police oversight How did you first get interested agency in the U.S. in social entrepreneurship back The administrative prosecution in the ’80s? unit is dedicated to investigating The young [social] and prosecuting complaints entrepreneurs we met then regarding the NYPD’s use of force and abuse of authority. were compelling—well —EVA SAVIANO educated, passionate, ambitious. Social entrepreneur- ship promised a more creative, less encumbered response to EXECUTIVE MOVES some of the world’s problems.

LiveRail: Brian Kane, What have been the biggest 43, has joined the changes since Echoing Green real-time video ad technology company started? as chief operating buck ennis Because social entrepreneurship officer. Previously, he now is so much more visible, was chief operating GOTHAM GIGS young organizations have a much officer at Admeld, quicker path to scale. recently acquired by Google. BizBash Media: Anthony Wills, 53, joined the trade-show media company as chief What are investors in social revenue officer. He was previously vice enterprises looking for now? president of partner development at In the Driver’s Seat The field has become much Vibe Media. more crowded and competitive, Popular Science: Jacob Ward, 37, was so ideas have to be backed up promoted to editor in chief of the Car Growing up, Jim O’Connell was a casual NASCAR spectator. Now, with much more detailed science and technology magazine. He impact analysis and metrics was previously West Coast bureau chief. as its chief sales officer, he’s one of the organization’s biggest Accordion Partners: Mow Wong, 36, was racing cheerleaders. ¶ “It’s hard to comprehend how big and intense the than in the past. promoted to chief operating officer of races are,” said Mr. O’Connell, 47, who grew up playing football, the financial services firm. He was ‘is a How do you envision social previously a director. basketball and baseball.“It’s a dream sport for a marketer.” ¶ In his six entrepreneurship evolving over The Community dream years on the job, he has worked with many of the business’ 40-plus the next quarter-century? Preservation Corp.: Many more people will work for Jaime Sharrock, 34, sponsors, including Mars and Coca-Cola.The brands get a good deal joined the nonprofit sport because NASCAR fans are more likely than others to change their them, and for social ventures, in the future. But compensation mortgage lender as purchasing behavior.“They love the sport so much that they want to chief of staff to the for a systems are still heavily rooted president and chief support the sponsors,” Mr. O’Connell said. ¶ The executive, based at in the old “charity” ethic, where executive. She was marketer’ NASCAR’s Park Avenue office, is on the road about three days a employees were poorly paid. previously deputy chief of staff to the week, visiting the organization’s five regional offices, meeting with Going forward, this employee commissioner at the NYC Department base will need to be more of Housing Preservation & clients or attending races. ¶ Previously, Mr. O’Connell worked as a Development. sophisticated, more productive, Berenson & Co.: Jeffrey Sechrest, 56, financial analyst. He moved into the marketing world as an associate more accountable—and better joined the merchant banking firm as brand manager at Frito-Lay before taking a job at the NFL. ¶ He compensated. president. He was previously co-head of lives in Ridgewood, N.J., with his wife and their 13-year-old daughter the media group at Lazard Freres. Read the full interview at Katz Television Group: and 10-year-old son, both of whom are NASCAR fans.“They think I Artie Altman, 52, http://mycrains.crainsnewyork.com/ See EXECUTIVE MOVES on Page 26 have a cool job,” Mr. O’Connell said. —emily laermer blogs/executive-inbox/.

June 4, 2012 | Crain’s New York Business | 25 20120604-NEWS--0026-NAT-CCI-CN_-- 6/1/2012 1:05 PM Page 1

projects, recipes and interviews. Cooking up a café comeback Does your husband make you laugh a lot? workshops. I’m someone who suf- plified the menu. He’s silly, but it’s Wife of Daily Show fers from anxiety. The art projects not like I live host seeks her own help me find some peace of mind What did you do before Moomah? with a jokester. during the day. That’s why I creat- I have a degree in design and business He’s not annoy- moment of Zen ed Moomah. from Drexel University. I’ve done ing and not al- graphic design,and I designed swim- ways on. Jon is How did Moomah get into trouble? suits. Then I became a veterinarian not even that BY LISA FICKENSCHER I couldn’t get on top of my technician. I stopped smart at home. labor costs. I had a lot of when I had a baby. He’s really all racey Stewart, 44, may be teachers working who about his family, married to a famous come- were staffing the art Does Moomah take up all such a good dian—The Daily Show’s workshops all day. MOVERS & your time? man, so fair and Jon Stewart—but she has SHAKERS I’m on the board of the a good dad. He’s Ther own following as the owner of If Moomah was losing so Portrait Project, a non- got his head on Moomah, a popular TriBeCa café much money, how could you Tracey profit that connects kids straight! that customers rallied around when reopen it? Stewart from all around the it was forced to close earlier this year I was completely over- world. I also redesigned Is Jon involved in because it was “hemorrhaging” whelmed by the emo- the lobby and offices of the restaurant? money. It has since reopened. tional response from my the Columbia University Yes! When we customers. I didn’t realize how Clinic for Anxiety and Related Dis- get in a bind

Why did you open a restaurant? much a part of the community it orders. lisel ashlock businesswise, we I don’t love to cook, but I love go- was. I was able to reopen because I always say, ing out with my kids and also mak- have five employees now, down And you’re launching a magazine with whether to call it a blog or a magazine. “What would Jon Stewart do?” He ing people feel taken care of. from 27. There are shorter hours the Moomah staff, right? It’s going to be an online magazine, advises us over the phone. He has Moomah allows children to do art for the workshops,and we also sim- We went back and forth about DIT Do-It-Together, featuring art lots of ideas. Ⅲ

Christie, 35, joined the sports and EXECUTIVE MOVES entertainment business as senior vice president, business development, for Continued from Page 25 MSG Sports. He was previously a was promoted to executive vice president director in the media and telecom group of millennium sales and marketing at the in the investment banking division of Motivate. media sales and marketing firm. He was Bank of America Merrill Lynch. previously senior vice president of Bonnier Corp.: John millennium sales and marketing. Driscoll, 43, joined the Celebrate. Chris Jordan, 55, was promoted to consumer publishing executive vice president of continental group as vice president television sales. He was previously senior of corporate sales. He Congratulate. vice president of continental television was previously senior Macy’s Gift Cards are the perfect sales. vice president of present for clients, customers and Vibe Media: David Cohn, 41, joined the partnership employees. Redeemable at over 800 vertical content and advertising network development at Just as executive vice president of digital sales Marketing International. stores nationwide and on macys.com, and marketing. He was previously senior Nelson Levine de Luca & Horst: Stanley they’re one of the smartest business vice president of CraveOnline. Jablonowski, 51, joined the law firm as decisions you’ll make this year! And, they Jackson Lewis: John L. vice president of business development. never expire. Sander, 56, joined the He was previously chief executive and law firm as a partner. president of Bank of America Corporate Call 1-800-452-4440 and be sure to ask He was previously vice Insurance Agency. about our volume discounts, or visit president and associate Biaggi: Marcy Schackne, 34, joined the macys.com/corporatesales general counsel at luggage company as vice president of Merck & Co. marketing. She was previously chief Prudential Douglas marketing officer at Heys USA. Elliman: Amy Kane, 52, Scholastic: Jamie Engel, 41, joined the joined the residential brokerage firm as publishing company as vice president and vice president and director of sales, publisher, Parent & Child magazine. He Manhattan and Westchester. She was was previously group associate publisher previously a senior vice president at for the parenting group at Bonnier Corp. Houlihan Lawrence. —eva saviano Magnetic: Soo Jin Ohh, 41, joined the search-retargeting company as vice EXECUTIVE PROMOTIONS president of advertising operations. She The fastest way to get an announcement into was previously vice president of Crain’s is to submit online. Fill out the form advertising operations at IDG at www.crainsnewyork.com/section/ TechNetwork. executive_moves. The Executive Moves column The Madison Square Garden Co.: Kevin is also available online.

CORPORATE LADDER FORWARD PASS GREG PASS, 40, has been named the founding entrepreneurial officer for CornellNYC Tech, the new tech satellite of the Ivy League university that will be located on Roosevelt Island. The Cornell University alumnus and former chief technology officer of Twitter will engage directly with the tech sector to help shape a curriculum that emphasizes applied innovation and entrepreneurial skills. He’ll work with leading tech professionals to coordinate collaborative student projects, faculty research and out-of- classroom activities such as workshops and “hackathons.” Mr. Pass was previously vice president of engineering at Twitter, co-founder and chief technology officer at Summize and a system architect at AOL. —EVA SAVIANO

26 | Crain’s New York Business | June 4, 2012 20120604-NEWS--0027-NAT-CCI-CN_-- 6/1/2012 1:06 PM Page 1 chemex / INSATIABLE CRITIC Morningside Drive. Tickets range from flickr.com Gael Greene $450 to $995. To get more information, THE contact the ICELW conference team at (212) 679-2683 or email [email protected]. To register online, visit www.icelw.org/ WEEK registration-crains.html. THURSDAY, JUNE 14, Great Italian AND FRIDAY, JUNE 15 AHEAD The Northside Festival brings the ENTREPRENEURSHIP FESTIVAL to JUNE 11-17 Williamsburg and Greenpoint, on Great Jones Brooklyn. The event will transform a 40,000-square-foot factory into a CONFERENCES

conference center that will house a lisel ashlock Il Buco’s offshoot AND SEMINARS trade-show floor filled with New York’s WEDNESDAY, JUNE 13 hottest startups. It will also be the site of is an exquisite Join Cowan Liebowitz & Latman for a more than 40 panels about innovation, WHAT SHE’S FASHION INDUSTRY BREAKFAST SEMINAR software development and design. The dream of a wine bar ON CHINA. The event will examine legal conference will take place at the READING and business opportunities and Northside Warehouse, 149 Kent Ave. ne of my favorite dinner challenges when doing business with or Tickets range from $20 to $180. To get AS THE FOUNDER of the Academy pals is a squealer.“I’m in in China and discuss the enforcement more information or to purchase tickets, of Medical Development and Italy!” she cries, her and protection of brands in that country. visit www.northsidefestival.com or email Collaboration, Maria Mitchell The short presentation format will allow [email protected]. spends her days dealing with voice arching above the for an interactive question-and-answer convivial din in the buck ennis experience. The seminar will take place CULTURAL EVENT biomedical research and sci- LEGENDARY: The remarkable short rib Oback room at Il Buco Alimentari e at the Harvard Club of New York, 35 W. MONDAY, JUNE 11 entists from medical institutions Vineria,turning heads at the commu- 44th St., from 8 a.m. to 10:30 a.m. To Join Entourage star Adrian Pick and hospitals. But when she’s nal table steps away. “This is really IL BUCO register for the free event, visit Grenier for the 2012 of the not working, she spends her time Italy!” www.cll.com. For more information, call BIDEAWEE GALA. week examining another area of Well, it looks like a prop master’s ALIMENTARI William M. Borchard at (212) 790-9290 Celebrating the animal academia: history. Italy—old brick, tin, rough-linen- or email [email protected]. welfare organization’s 100th year E VINERIA at its East 38th Street location, the She recently started reading covered banquettes, artist Warren 53 Great Jones St. The Path to Power (The Years of (212) 837-2622 WEDNESDAY, JUNE 13, evening will be structured around a New Muller’s clever chandeliers overhead, TO FRIDAY, JUNE 15 Lyndon Johnson, Volume 1) by www.ilbucovineria.com York City theme. The festivities will the husky chef in his denim apron The International E-Learning include music, dinner, dancing and both Robert A. Caro, a biography of the commanding the open kitchen. Association presents the INTERNATIONAL live and silent auctions. The black-tie- 36th president’s early years. The house has sent a platter of sa- CONFERENCE ON E-LEARNING IN THE optional gala will take place at Gotham “It’s a lot about leadership lumi:peppery Tuscan sausage,capoc- CUISINE Italian-inspired WORKPLACE. The fifth annual conference Hall, 1356 Broadway, at West 36th and political maneuvering and olla,gossamer shrouds of lardo.“I can brings together e-learning experts from Street, from 6:30 p.m. to 10:30 p.m. PRICE RANGE Pastas and more than 30 countries in academia, Tickets range from $50 to $500. To get the way the world works,” said taste the fennel,” someone cries. Ms. Mitchell, who is also the Now the five of us are shifting a secondi $17-$38 industry, small business and Fortune 500 more information and to purchase companies. The conference will take tickets, call or visit organization’s president and CEO. half-dozen starters in small dishes on SERVING Breakfast, lunch, dinner (866) 262-8133 place from 10 a.m. to 6 p.m. at the www.bideawee.org. “I like reading about people who the rough wooden table, gobbling up RESERVATIONS Recommended Faculty House, Columbia University, 64 —eva saviano miniature artichokes,crisp-fried with are masterful at politicking.” NOISE LEVEL Noisy —EMILY LAERMER a hit of preserved lemon.Who would To view Crain’s classified events listings, go to www.crainsnewyork.com/events think of pairing sausage with charred I can’t wait to return. garlic scapes, currants and crispy car- rots? The cuttlefish à la plancha is an I will definitely go back. original, too: seared with black garlic I’ll let them simmer awhile. on a rubble of puffed barley. NO HATS Never again. Most of us are kvelling now over what is modestly billed as ricotta and peas. It’s as if I’ve never seen a pea so Sicilian elixir of anchovies, colatura revealed as in this amazing sculptural di alici, marinated with crushed cut of the knife. It might have been a peppercorns for 24 hours, then jeweled pin by Cartier.“It’s just a pea,” slow-roasted. No one whose food murmurs a friend. But it’s not just a I’ve ever tasted in Italy or anywhere pea. A crunch, the tang of cheese, a else could dream up this animal.It is hint of mint. It is pretty thrilling. chef Justin Smillie’s Demoiselles “I really know I’m in Italy,” my d’Avignon. blissed-out pal announces. Granted, Smillie’s pastas could Actually, I cannot imagine raw pass for Italian: bucatini cacio e pepe peas in the pod so exquisitely sculpt- (with pecorino Romano); spaghetti GROW. WISELY. ed, much less served in some Tuscan (salted with bottarga); my favorite, country inn. Crudo may have caught the cork-shaped busiate (a salt sam- on all over the boot by now, but this pler of anchovy and capers with an al- couturier cut of Spanish mackerel mond crunch); and the ruffled lasag- Everyone wants to grow. But grow how? In which with green radish, the cool of grated nette (tossed with rabbit, greens, markets? At what cost? To grow wisely, you need an Charles Weinstein cucumber and the juice of limequat olives and parmigiano). advisor who really knows your business...and knows Chief Executive Offi cer could scarcely be imagined in Dessert may seem excessive, even 212.949.8700 you. Who can deliver tailored solutions that create Umbria, much less Calabria, where overkill at this point,but quite frankly, [email protected] they do eat tiny neonatale raw. all are modest and mostly delicious, opportunities, maximize effi ciency and build business. Howard Cohen In Italy,a trattoria or gastronomi- especially the zabaione with straw- EisnerAmper is that advisor. We roll up our sleeves ca might very well cure its own meats, berries and the chocolate budino lay- Chairman to get to the bottom of your toughest challenges so as the house does here. But Italy’s lit- ered with espresso mousse and 732.287.1000 tle country inns get bread from the lo- whipped mascarpone. you get the advice and strategies you need to create [email protected] cal bakery.They are not likely to bake Proprietors Donna Lennard and sustainable growth. their own from whole grain and lazy, Alberto Avalle started with antiques www.eisneramper.com long fermentation, as Kamel Saci and Muller’s chandeliers around the Let’s get down to business.TM does here. corner at Il Buco on Bond Street 13 EisnerAmper LLP Uncontrollable gasps announce years ago. The artist now sells pieces Accountants & Advisors the already legendary short rib, a made from Mini-Coopers for blackened crusty monster wrestled $200,000, and she has created her Independent Member of PKF International to the platter on its bone.Yes,it is re- grocery store and wine-bar dream of markable—unimaginably tender; Italy on Great Jones.As you have read fatty,of course; the celery,horserad- here, I’m totally smitten. ish and bright green olives balancing NEW YORK | NEW JERSEY | PENNSYLVANIA | CALIFORNIA | CAYMAN ISLANDS the richness with salt and bitter.The Copyright © 2012 by Gael Greene. beef has been brined,salted with the Syndicated by www.insatiable-critic.com.

June 4, 2012 | Crain’s New York Business | 27 CN015183.qxp 5/24/2012 4:22 PM Page 1