TOP STORIES REPORT Chinatown’s uphill REAL ESTATE climb continues, Top office leases, five years after building sales terrorist attack in 2006; more PAGE 2 ® PAGES 19-35 Designer struggles for spotlight in his make-or-break VOL. XXIII, NO. 8 WWW.NEWYORKBUSINESS.COM FEBRUARY 19-25, 2007 PRICE: $3.00 fall season PAGE 3 Bankers Oscar-winning actor Jamie Foxx may be aim to working on a book PAGE 6 buy NY Alair Townsend on how to fix city’s sick assets retiree health plan PAGE 13 They make pitch Planning chief for privatization; Burden sets rules only MTA says no for garment district, UP AGAINST THE WALL: Former floor trader Linda BY ANNE MICHAUD Coney Island McBurney hopes to find a INSIDER, PAGE 15 job with a money investment bankers are blitzing management firm. the Spitzer administration with proposals to sell state assets to pri- BUSINESS LIVES buck ennis vate firms, as investors seek to buy NIGHT CRAWLERS EXCHANGING PLACES toll roads, bridges and even Off- Track Betting. The strange world and Bankers are making the rounds vampire hours of club at the Thruway Authority,the Em- PAGE 39 promoters Stranded by Street, pire State Development Corp., the state Department of Transporta- tion and the Port Authority of New York & New Jersey. They ex-traders seek rebirth seek to capitalize on statements by the new governor that he is open to public-private partnerships. “buy” and “sell” orders. New York’s stock and commodity Meanwhile, Gov. Eliot Spitzer Electronic markets Not anymore. Over the past exchanges operate, is also elimi- has ratcheted up the pressure on his erode a way of life; couple of years, as firms increas- nating hundreds of jobs. The administration by talking about a ingly used computers to make transformation is slowly but surely wish list of at least eight major AT DEADLINE some expats struggle trades, Ms. McBurney realized cutting off the livelihoods of a gen- transportation projects that will re- to relaunch careers that her career prospects were eration of Wall Streeters—the quire funding. In his State of the INVESTORS EXPECTING A bleak. Last July, she left to find a high-energy traders in the colorful State speech,he called for “a bold vi- SWEETENED OFFER have driven new job. She’s still looking. jackets who have long been the sion for infrastructure investment.” Smith & Wollensky’s stock BY AARON ELSTEIN “I’m at a point in my life where public face of the exchanges, and The only agency that has price higher than a takeover I’m trying to reassess why I was put who now number a mere 4,000. brushed off private-investment bid for the company. In Jan- linda mcburney worked at the on this planet,” she says. “There’s a sense of lament over talks, bankers say,is the Metropol- uary, Landry’s Restaurants Inc. New York Stock Exchange for She’s got plenty of company. what’s happening,” says Caitlin itan Transportation Authority. made a hostile bid to buy the more than a decade, jostling with The explosion of electronic Zaloom, an anthropologist who “We took a look at the projects New York steakhouse chain, hundreds of other traders barking trading,which is changing the way See EX-FLOOR TRADERS on Page 10 See BANKERS on Page 8 offering $7.50 a share, or $64.5 million in cash.The stock closed Friday at $8.20. It isn’t clear if speculators expect an increased offer from Landry’s, a bid from another company or Saint Vincent’s plan faces obstacles a management-led buyout. THE NEW YORK CITY OPERA IS Medicaid cuts, state approvals could hold EMBROILED in a labor dispute BEFORE AND AFTER with the American Guild of hospital system back as it looks to rebuild Stats for Saint Vincent Catholic Medical Centers. Musical Artists that could stall the company’s up- bold plan to emerge from bank- AT BANKRUPTCY AT EMERGENCE coming production of The BY GALE SCOTT ruptcy and build a shiny new flag- FILING1 FROM CHAPTER 112 Pirates of Penzance.Talks ship hospital on Seventh Avenue HOSPITALS between the opera and the coming at a time when the state took many industry veterans by sur- 6 2 See AT DEADLINE on Page 2 is in hospital-closing mode, Saint prise last week. Now, they are busy 4 NURSING HOMES 3 Vincent Catholic Medical Centers’ calculating whether the hospital can pull off such an ambitious plan. 11,628 TOTAL EMPLOYEES 5,592 “It’s a question of whether they $1.6 BIL. TOTAL OPERATING REVENUE $896 MIL. can get the necessary state ap- 1-July 2005. 2-Anticipated in summer 2007. provals in this climate,” says An- drew B.Roth,a partner specializing in health care at Mintz Levin Cohn off debt, building a state-of-the-art valuable real estate in the West Vil- ELECTRONIC EDITION Ferris Glovsky and Popeo. “The facility.” lage, Saint Vincent can raise much plan makes a lot of sense—capital- The long-awaited plan does of the money needed to build a NEWSPAPER izing on valuable real estate, paying have a lot going for it. By selling off See SAINT VINCENT on Page 8 AT DEADLINE

Continued from Page 1 to provide free on-site tax union broke down Feb. 7 over preparation for entry-level the number of rehearsal hours staffers.The national nonprofit required by members of the has already lined up 14 chorus.The two groups will businesses, ranging from begin discussions again on Feb. Century 21 to the Garment 28, just four days before opening Industry Development Corp. to night.The union may picket the Just Bagels.The goal is to opening if the issue isn’t reduce the estimated $500 resolved. million in earned-income tax credits that go uncollected MANSUETO VENTURES, annually in the city. PUBLISHER of business magazines Fast Company and NEW YORK CORPORATION Inc., is launching Mansueto COUNSEL Michael Cardozo will Digital, which will expand the argue a case before the U.S. magazines’ Web sites and create Supreme Court in a fight over networking and database nearly $20 million. Lower services targeting the business courts have upheld the city’s community. Mansueto, founded position that India owes the city by Morningstar Inc. Chairman more than $16 million in Joe Mansueto, will invest property taxes on its consulate $10 million in the project, and U.N. mission, and that MAKING SOME NOISE: Chinatown merchant Andy which will include a partnership Mongolia owes more than Liu says it will take more with a Web site offering listings $2 million on its consulate.The than customers’ holiday of small businesses in China. countries appealed, arguing that splurges to cover his rent.

the city doesn’t have the buck ennis THE CITY’S ECONOMIC authority to compel them to pay DEVELOPMENT CORP. expects to taxes.The case is scheduled for release a report this summer April. outlining the use of and de- mand for high-speed Internet SOME OF THE BIGGEST services in the five boroughs. INVESTMENT BANKS are An uphill struggle The study, conducted by devouring struggling mortgage Chicago-based Diamond companies that make loans to Management & Technology risky borrowers. Financial Week Chinatown’s recovery comes slowly, despite advances Consultants, will recommend reports in today’s edition that what the city can do to Credit Suisse swooped in to buy BY SAMANTHA MARSHALL encourage universal broad- most of the assets of ResMae band access. It may also suggest Mortgage Corp., a lender to on a wintry friday afternoon, business was sporadic at the Fu Qiang Enterprise souvenir the construction of a citywide home buyers with bad credit. Wi-Fi network. Other companies remain for shop on Mott Street in Manhattan’s Chinatown. Owner Andy Liu was hoping preparations sale, including Option One for this week’s Lunar New Year celebrations would lure more customers for traditional SEEDCO IS LOOKING TO EXPAND Mortgage Corp. and ACC ornaments: golden pigs, decorative firecrackers and lion puppets. But the Beijing native says THE NUMBER OF EMPLOYERS it’s Capital Holdings’ Ameriquest ■ it’ll take much more than holiday splurges to cover his rent. working with in New York City unit. “We need to make it nice so tourists will want to come here,” says Mr. Liu, who is also president of the Chinese American Business Network, an association of local merchants. He CORRECTION waves a long wish list, written in Chinese characters, outlining suggestions for neighborhood The WIRED NextFest held from Sept. 29 to Oct. 1 attracted 50,242 attendees. The number was incorrect in a Feb. 5 list of the largest meetings and conventions in the city. improvements—from better street lighting to a traditional archway pointing visitors to the See CHINATOWN on Page 9

THIS WEEK IN CRAIN’S NEIGHBORHOOD

JOURNAL------11 Indie publisher looks more

ALAIR TOWNSEND ------13 Perseus expands & Hamilton consultant who has THE INSIDER------15 GET IN LINE been Perseus’ chief executive since 2004. He is expected to pay about in distribution with Top clients of Publishers WEEK IN REVIEW ------16 $18 million for PGW. winning bid; small Group West, ranked by size. The firm’s bid has not been pop- SMALL BUSINESS ------17 houses concerned Avalon Publishing Group ular with some of the bankrupt dis- REPORT: Grove/Atlantic tributor’s smaller clients,which wor- 41 ry about getting lost in the shuffle. REAL ESTATE ------19 BY MATTHEW FLAMM New World Library “I always felt [PGW] was out there fighting for us,” says Beverly DEALS------34 Rich Press perseus books group will become Potter, who runs Ronin Publishing CLASSIFIEDS ------36 the Random House of indies if its in Berkeley. “Would David Stein- bid to take over bankrupt book dis- GROVE/ATLANTIC berger be out there fighting for us? I BUSINESS LIVES------39 tributor Publishers Group West titles include don’t know.” gets the go-ahead, as expected. A Fighter’s Heart, Like a number of executives at THE WEEKS AHEAD ------40 Perseus took the lead last week in right. small publishers, Ms. Potter had CORPORATE LADDER------41 what had become a knock-down, been rooting for National Book Net- drag-out fight over PGW. The work, which appears to have lost its EXECUTIVE MOVES------42 43 Berkeley, Calif., distributor is the O.K.’d on Thursday night. Perseus bid for PGW, despite offering more BOB LAPE ------43 lifeline to bookstores and other out- would add PGW to a constellation money. On Friday, the Lanham, lets for more than 130 independent of divisions that includes imprints Md., distributor still held out hope vol. xxiii, no. 8, february 19, 2007—Crain’s New York Business (issn 8756-789x) is pub- lished weekly by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Period- publishers nationwide, including PublicAffairs and Basic Books and that the Delaware court would see icals postage paid at New York, N.Y. and additional mailing offices. Postmaster: Send address Grove/Atlantic and Soft Skull Press two other distributors. things its way. changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a in New York. “We would be the largest organ- On Thursday night, Network copy, $59.79 one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents A U.S. Bankruptcy Court judge ization completely committed to in- Book President Jed Lyons upped his copyright 2007 by Crain Communications Inc. All rights reserved. is expected to approve the sale, dependent publishers,” says David offer for PGW clients’claims to 100 which the creditors’ committee Steinberger, the former Booz Allen cents from 85 cents on the dollar.

2 | Crain’s New York Business | February 19, 2007 Proposal Taking a bruising for pricey Designer typifies flood of wannabes parking striving to make it; Sponsors say market $1M already spent rates would reduce BY ELISABETH BUTLER traffic congestion

fashion designer Jerry Tam BY ERIK ENGQUIST draws inspiration from personal ex- CLOTHING VOYEURS perience when he creates a new col- Style.com, which posted runway continuing their push to relieve lection. This year, his line of black, images from 96 shows, saw traffic traffic congestion in the city’s busi- blue and maroon clothes reflects ness district, transportation and soar 49% during Fashion Week. the beating he’s received since start- business advocates will pitch mar- ing his own company, Form, more ket-rate street parking to policy than two years ago. makers next month. “It’s about bruises,” Mr. Tam UCLA professor Donald Shoup says. “We’re kind of fashion-for- 1.2 millionVISITORS will argue at a series of appearances ward luxury, and that’s not some- that cheap parking makes streets thing readily embraced in middle dysfunctional. Event sponsors in- America.” clude Transportation Alternatives 67 million and Partnership for New York City. Cashing out inheritance PAGE VIEWS The idea is to hike street parking only a few boutique locations costs closer to the rates charged by sell his clothes; bigger retailers Source: CondéNet garages. When street parking is won’t give him a break, saying his priced high enough to ensure that clothes are too edgy for their sales 15% of spots are vacant, streets oper- floors.Mr.Tam,31,has spent near- house before launching his line. ate at peak efficiency, advocates say. ly $1 million of his own money to BIG BREAK: Jerry Mr. Tam needs to generate an- Cars and delivery trucks move faster, keep the company alive,cashing out Tam attracted more nual sales of at least $250,000 just and more motorists use garages. his inheritance and even his life in- retailer interest to cover expenses.That figure is at- Revenue from street parking surance. with his latest, less tainable, as one of his jackets can would pay for streetscape upgrades. “It takes a lot of money to have edgy collection. cost upward of $1,000. But getting “People are much more comfort- a serious, professional team and there will require orders from more able paying [higher] prices if they make payroll when you’re worrying retailers. understand the money is going to about affording buttons or fabric,” bing fashion schools—Pratt Insti- wear his clothes. But buzz doesn’t local improvements,” says Paul Mr. Tam. tute alone receives 33% more appli- pay the rent, and this fall will be a ‘All about the buyer’ Steely White, executive director of Giving until it hurts is just part cations for its program than it did make-or-break season for Form. to help jump-start sales of his Transportation Alternatives. of what emerging designers endure five years ago. But unknown de- “I need a minimum amount of latest collection, Mr. Tam toned Because parking garages would as they try to attract attention. signers face daunting odds in trying sales to cover my investments in the down his avant-garde style to make get more customers, they might tone Thanks in part to the hit television to appeal to retailers. past and continue this business in the clothes more wearable. “This down their criticism of road-use fees, show Project Runway, hundreds of Mr. Tam has come further than the future,” says Mr. Tam. A grad- particular season it was all about another congestion-reducing idea fresh New York designers are enter- many. Trend-spotting e-mail ser- uate of Parsons The New School the buyer,” he says. that business and transportation ing the business with dreams of be- vice DailyCandy praised Form for Design and the Fashion Insti- The revamped look was put to groups want the city to consider. coming the next Ralph Lauren or twice last year, and celebrities like tute of Technology, he worked for the test during Fashion Week earli- Marc Jacobs. Aspirants are mob- rock photographer Mick Rock Zac Posen and the Perry Ellis See NEW DESIGNER on Page 8 COMMENTS? [email protected] like a colossus BY THE NUMBERS BUILDERS STANDING TALL But the creditors’ committee and Adding PGW’s 130-plus clients is residential housing construction in New the distributor’s bankrupt parent, expected to increase sales by York City is ascendant. In the past two-year Advanced Marketing Services, $150 million. Distributors typical- period, the number of building permits issued for chose to go with Perseus.Despite its ly keep 15% to 23% of net revenues. privately owned residential units has reached levels offer of only 70 cents on the dollar, Distribution has become a focus not seen in decades, according to recent data from the New York firm had the backing of activity in recent years—for the U.S. Census Bureau. It’s a good thing, because of the largest publishers. Perseus, as well as for giants like New York is growing. Since 1990, the city has Random House and Harper- added 900,000 people, and officials expect the Preserving the culture Collins—because it offers the op- population to increase by the about the same

some favored Perseus because of portunity for growth in a basically number over the next 25 years. ap images the reputation of its imprints and its stagnant business. high profile in the industry.“We feel The consolidation of distribu- Perseus will preserve the culture of tors also reflects the industry’s PGW as an independent distribu- growing domination by fewer and tor,” says Munro Magruder, associ- bigger players on both the publish- ate publisher of New World Library, ing and bookselling sides. in Novato, Calif. Some independent publishing Perseus was founded 10 years ago veterans say a larger Perseus could as an alternative to conglomerate give smaller publishers more clout. publishers. It got into distribution “This could mean that when two years ago with its acquisition of [sales reps from Perseus] go into Client Distribution Services, fol- Barnes & Noble,they have more say lowed by the purchase last summer because they represent that much of indie distributor Consortium. more billing,” says John Oakes, ex- Shipments from Perseus facili- ecutive editor at Atlas Books. ties resulted in $330 million in total sales last year, Mr. Steinberger says. COMMENTS? [email protected]

February 19, 2007 | Crain’s New York Business | 3 IN THE MARKETS HIGHLIGHTS REEL Avis Budget tries harder; +1.0% drives to widen margins The Bloomberg/ Crain’s New there are signs that things are really get- get to that level, earnings could reach York Index Former conglomerate ting better,” says Brian Harper, chief in- $211 million, or $2.06 a share, on rev- rose 1.0% focuses on car rentals; vestment officer at Harper Asset Man- enues of $6.5 billion. to end the agement, an Avis The key will be for week at shares deemed good buy Budget shareholder.“I the company that fa- 397. The ➡ think this stock can mously “tries harder” S&P 500 get to $38.” to hike its rates in a no- Index rose BY AARON ELSTEIN 1.2%, Investors will get toriously competitive closing at their first good look at business.Early indica- 1456. vis budget group inc. got a how an independent tions are encouraging. new lease on life last summer Avis is performing Pricing rose 5% in the when it shed its real estate when it reports third quarter com- and travel businesses to focus fourth-quarter and pared to a year earlier, exclusively on renting cars. full-year earnings on according to Morgan RISERS ASince then, shares of the Parsippany, Tuesday.Analysts sur- Stanley research. 5-DAY 1-MONTH 3-MONTH CLOSING N.J., company, formerly known as Cen- veyed by Reuters Esti- In addition, Avis % CHANGE % CHANGE % CHANGE PRICE dant, have soared nearly 50% in value, mates forecast 2006 plans to have more Primedia +23.8% +37.4% +39.8% $2.39 closing at $27.29 on Friday. Investors’ operating income of off-airport locations, a faith has been restored by a management about $98 million, or business in which it’s Scientific Games +13.2% +15.6% +16.2% $34.14 that has focused its attentions on its core 97 cents a share, on now a minor player, New York & Co. +9.9% +8.8% +14.0% $16.13 business, instead of also selling houses revenue of $5.7 bil- with a paltry 7% mar- Market cap $2.7 billion General Maritime +7.8% +15.8% +8.9% $39.25 and booking hotel rooms. lion. This year, they ket share.The compa- Coach +6.7% +7.9% +18.0% $49.98 But this stock has plenty of gas left. are forecasting that Fleet size 400,000 vehicles ny added 200 such of- The shares trade at a multiple of 23 times profit will jump 23%. fices last year and 2007 P/E 23 this year’s expected earnings, significantly But the critical is- expects to open anoth- SINKERS less than the shares of rival Hertz, which sue will be profit mar- er 200 this year.It is al- 5-DAY 1-MONTH 3-MONTH CLOSING fetch a hefty 30 times projected income. gins. Last year, they ready the leader in air- % CHANGE % CHANGE % CHANGE PRICE Profit margins, which got hammered shriveled when Avis was unable to pass on port rentals, with a third of the market. Weight Watchers -12.0% -9.7% -1.0% $48.28 in 2006, are poised to perk up nicely this automakers’ steep price increases to cus- Avis also hopes to cut costs this year by Warner Music -9.4% -21.5% -31.1% $18.25 year as Avis executives show signs of fi- tomers. The company reported third- reducing its reliance on its traditional top nally getting customers to pay more for quarter pretax margins of 4.2%,compared supplier,GM,and extending the life of its 1-800-Flowers -7.7% +13.5% +27.4% $6.98 their rentals.If the company can just push with Dollar Thrifty’s 6.1%, for example. fleet by a month, to an average of 10 Maidenform Brands -4.8% +6.4% -3.9% $19.74 its margins up to industry averages, earn- Encouraged by bullish statements months. NYSE Group -4.4% -16.8% -6.2% $88.01 ings could double by next year. from management, analysts expect mar- “It’s been a struggle for Avis, but at last gins to widen to 8% next year. If Avis can COMMENTS? [email protected]

STOCKS TO WATCH Investors cheer as Take-Two founder takes a powder in options-timing scandal Talk about fearless investing! Last week, Take-Two’s founder became the first executive to plead guilty in the options backdating scandal. Now he’s working with authorities to ferret out other fraudsters. Last month, the maker of hyper-violent videos said it faced delisting over its inability to file required regulatory statements. So what’s happened to the shares? They shot up another 5% last week and are up 14% in the last month. Branded as little more than a charity case in an op-ed in The Wall Street Journal on Thursday, The New York Times managed to remind investors that it isn’t on the dole yet. The publisher’s shares got a nice bounce after the Times unveiled a pact to combine its job listings with those of Web titan Monster Worldwide. Buoyed by good news on other recent e-ventures, the shares have gained nearly 20% in the last six months. Robert Greifeld, Nasdaq’s CEO, said last week that ultimately he “chose not to win” the battle for the London Stock Exchange. Investors, unhappy with that call, pummeled the market’s shares into a 13% dive. Mr. Greifeld’s only consolation may have been that the stock of archrival NYSE Group also had a lousy week, falling nearly 5%. Maybe the rub is not so much a lack of merger partners as a surfeit of competitors. charts: lindström bekka

4 | Crain’s New York Business | February 19, 2007 London.Fly to Then fly free* to Cancunor St.Croixor Hawaii or...

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Travel on flights operated by other airlines such as American AmericanConnection, AAdvantage, AA.com and We know why you fly are marks of American Airlines, Inc. Berlin Boston BuenosAires CitySpire Chicago NEW YORK,NEW YORK Frankfurt welcomes the following new tenants edited by Valerie Block February 19-25 London LosAngeles Kay Kapolvitz, Inc./North Haven Partners, Inc. Madrid represented by Foxx’s next role: best-selling author?

Milwaukee Joseph Mangiacotti and Lisa Cear of CBRE amie foxx (left) has won an Oscar and a Golden Globe, topped the record charts and had his own hit television show. NewYork JHe can do comedy, action, drama and musicals. Siesko Partners Now he may be ready to prove he can write a best-selling NorthernVirginia represented by book. Daniel Segal of Earlier this month, Marcus King, one of Mr. Foxx’s Newmark Knight Frank managers, tested the waters in New York, holding meetings

Paris with publishers in the offices of Manhattan literary agent

Philadelphia David Vigliano. According to industry sources, the meetings were a little vague. “There was no vision for a book, just SanFrancisco for leasing information, please contact: Todd D. Silverman discussion of how hot he was,” reports one top Megan Sheehan executive at a New York house.

SaoPaulo That’s not so unusual for celebrity-driven books, which are often sold without a word on paper. Mr. Vigliano, who specializes in Seattle 212.715.0300 celebrity projects, says it’s too early to talk about Mr. Foxx.

SiliconValley “The manager was here, and he did a couple of meetings,” he says.

gettyimages “It’s not something I’m prepared to comment about.”

Sydney which is coming from the open. With the city’s crackdown New project entrepreneur himself, as well as on nightclubs and underage WashingtonDC on grocer’s list from outside investors.The two- drinking, upscale lounges time winner says he’s already hired obviously make for a less stressful after a three-year hiatus, four managers, from nonfood business these days. supermarket maven Joe Fedele industries such as shipping. (below) is at it again. The co-founder and former Curtains rise chief executive of FreshDirect and Club owners in posh rental former president of Fairway lounge around Uptown is starting a food business residents of The Archstone the era of the big club may be Clinton, a new luxury rental over. For proof, look at Crobar. property on the West Side, will be The megaclub—one of the able to take in a play without biggest in New York—threw its leaving their lobby.The building, Weiser is pleased to announce that last bash on Friday. on West 51st Street and 10th Owner Bruce Dunston, who Avenue, will be home to five off- licensed the name and decided to Broadway theaters. Ron Lagnado, CPA dump it, says that the nightlife Sources say that the 52nd scene is gravitating toward smaller Street Project, which matches up has been admitted places. kids with professionals to create into the partnership. “New York nightlife is original plays, is one of the evolving,” he says. “I see a lot of companies in talks with lounge business, and I want to developers Archstone-Smith and have lounges in my club.” The Dermot Co.Two other New York City 135 West 50th Street He’s redubbed the space Studio groups are also negotiating to New York, NY 10020 Mr. Lagnado possesses more than Mezmor, which will only operate move into the space. Tel 212.812.7000 17 years of experience providing as a club on the weekends and will The developers, who got a Fax 212.375.6888 larry ford auditing and accounting services. be run by promoter Joey Morrissey. break on land they bought from Long Island 3000 Marcus Avenue He has extensive experience in that will compete with those of his Mr. Dunston will rent the the city for including the Lake Success, NY 11042 performing attestation engagements, one-time partners—he had space for corporate events, art nonprofit tenants in their plans, Tel 516.488.1200 compliance, due diligence, and cost fallings-out at both companies shows, concerts and fashion shows say the theaters are a good selling Fax 516.488.1238 certifications for commercial and and was eventually ousted. during the week. He also wants point. “People are really excited by Westchester residential real estate in both Famous for his public spats the space to be used for shooting the idea of being able to walk 660 White Plains Road with the owners of Fairway, Mr. film and music videos. downstairs and see a show from Tarrytown, NY 10591 development and operating entities. Tel 914.333.0555 Fedele says his new venture will be The 35,000-square-foot their apartment,” says Daniel Doern, Fax 914.333.0556 Weiser's Real Estate Services Group similar to FreshDirect in that it building on West 28th Street vice president of development at will sell directly to consumers and includes the upscale Pink Archstone-Smith. ■ New Jersey provides personalized service and 399 Thornall Street businesses and make some of its Elephant club, which will stay Edison, NJ 08837 technical expertise to real estate own food. He refuses to provide Tel 732.549.2800 developers, owners, managers, REITs, Fax 732.549.2898 more details, though he adds that and investors. he’s looking for a location outside MUSIC SCORE www.weiserLLP.com of Manhattan that will have enough space to park lots of ZENBU MEDIA, owner of Relix and Global trucks. Rhythms magazines, acquired two more rock Mr. Lagnado can be reached “The basic model is giving titles, Metal Edge and Metal Maniacs. The at 212.375.6551. consumers the best price for the four titles will give the publishing company, best quality,” he says, repeating the run by former Citigroup executive Steven Weiser LLP mantra he spouted in his former Bernstein, an audience of more than 1 million Certified Public Accountants jobs. music fans. He’s still finalizing funding,

6 | Crain’s New York Business | February 19, 2007 Dating sites play the field WATCHING THE PHONE MEETMOI.COM, A NEW DATING SERVICE for New Yorkers, hopes to attract people who like to text message and make dates according to where they are Approaches include MeetMoi.com—are offering inno- Almost half of OkCupid.com’s at that moment. vative services to lure people from users previously used a paid service, Users create profiles, both on the site and no-fee and focus larger and more established sites like Mr.Yagan says.The site has also dis- via cell phone. To find a date, they text Match.com, which has 1.3 million tinguished itself from larger rivals by message their street location and preferences on text messaging; paid users. OkCupid.com now has offering unique features. For exam- to MeetMoi.com, which then generates a list ad revenue is critical 500,000 active users. ple, users can create and post their of potential companions and sends it to the Competition is fierce among own quizzes—like “The How Red- user’s phone. When a user contacts someone, dating sites. As of January, the neck Are You Test”—which others the site charges a $1 fee. BY AMANDA FUNG lifestyle/dating category had 1,463 can then adopt. MeetMoi.com’s creator, Andrew Weinrich, is a high-profile Silicon Alley sites, 61% more than a year ago, ac- Because OkCupid.com doesn’t rubina madan wanted to meet cording to research firm Hitwise. charge fees, it must make money entrepreneur who started former social network Sixdegrees.com, a forerunner people online but refused to pay Most of the sites fill niches by tar- from online advertising,which is pro- of Friendster. For this venture, he has partnered with major wireless Match.com $29.99 a month for the geting,say,vegans or people of a par- jected to reach a total of $19.5 bil- carriers, including Cingular and Sprint Nextel. Some analysts are skeptical privilege. As a result, she could only ticular faith. OkCupid.com, which lion this year. about mobile dating, but Mr. Weinrich argues that more people text message post her profile on the site and Though there is no specific mod- than e-mail. “Today, everything is instant,” he says. browse others’ profiles. Interested el for success at dating sites, analysts parties could contact her. say they can be profitable with just a But when Ms. Madan began us- few thousand members. The costs to be sustainable, however. The site agency Push Creative, wants to grab ing a free service, OkCupid.com, in for starting and maintaining such got about 60 million page views in a piece of the action with Three De- June 2004, she could contact sites are relatively low because they January.In contrast,many social net- grees,which he expects to launch this whomever she was interested in.Ad- have no content-related expenses. working sites whose profits depend year.The fee-based site will combine ditionally,the personality quizzes she on advertising have 70 million page dating services with social and pro- Is there room for free sites? took allowed the service to weed out PASSING MUSTER: OkCupid.com lets users views a day. Such traffic would gen- fessional networking features. incompatible people on her behalf. design their own screening quizzes. mr. yagan has spent $1 million on erate about $12 million in annual Mr. Gaskins, who is also a veteran “OkCupid.com’s matching meth- technology,labor and marketing for revenue,says David Evans,an indus- director and producer,has been trying odology is really accurate,” says Ms. OkCupid.com so far. He says he is try specialist who has a blog called to raise $4.8 million in seed capital. Madan, 23. The Columbia Univer- recently raised $6 million in angel confident about advertising sales Online Dating Insider. “There are people on Match.com and sity graduate journalism student funding, hopes to attract all types. but declined to elaborate. A host of sites still target serious Yahoo Personals who would rather be met her boyfriend on the site two “Our goal is to become a house- Nate Elliott, senior analyst at daters willing to pay $30 to $100 a in a unique club where they are far years ago. Based on OkCupid’s hold name and have more users than JupiterResearch, says: “There’s room month for their services.Revenues of more guaranteed to meet people they analysis of their test answers, the Match.com,” says Sam Yagan, co- for free dating sites that focus on ad- fee-based dating services are expect- are looking for,” he says. “The differ- two were an 89% match. founder of OkCupid.com and a seri- vertising and a certain level of disgust ed to rise 10% this year, to $707 mil- entiator for us is we will have a select, A growing number of small al entrepreneur. He sold his previous with rising prices for paid services.” lion, according to JupiterResearch. upscale clientele.” Manhattan online dating compa- startup,educational site SparkNotes, OkCupid.com may be a long way Rudy Gaskins, co-founder and nies—including OkCupid.com and to Barnes & Noble in 2001. from attracting the numbers it needs chief executive of Manhattan ad COMMENTS? [email protected]

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February 19, 2007 | Crain’s New York Business | 7 sultant who represents several doc- Center as well as its own affiliate,St. tors’ groups in New York, says many Vincent’s Midtown. The moves are Saint Vincent faces obstacles of Saint Vincent’s physicians are be- likely to increase lucrative emer- ing bombarded with recruitment gency department admissions at St. Continued from Page 1 turn phone calls. essary approvals for Saint Vincent to offers,particularly from Continuum Vincent’s Manhattan to about modern facility to replace its shop- But even Chief Executive Guy rebuild its flagship.While observers Health System and Lenox Hill 90,000 a year from the current worn, ill-configured hospital. The Sansone admits that obstacles loom. believe the hospital may have an in- Hospital. 58,000, a system spokesman says. plan calls for replacing the old “The biggest risk we face is the formal go-ahead, system officials “Loyalty is an elusive concept,” Mr. Sansone is the third turn- 820,000-square-foot facility with a one posed by the state govern- would only say that the state De- Mr. LaPenna says. “A lot of doctors around specialist hired by the sys- 550,000-square-foot hospital, at a ment,” he says. partment of Health “is being very have business enterprises that are tem. He came in on the heels of a cost of about $550 million.The real He estimates that Medicaid cuts helpful.” economically fragile, because of un- bankruptcy that many felt could estate sale is expected to bring in proposed by Gov. Eliot Spitzer Another unanswered question certainty about reimbursements.” have been avoided by better man- about $400 million. would cost Saint Vincent $10 mil- is whether Saint Vincent can con- agement. The system is suing one And by promising to pay the sys- lion to $11 million a year, severely tinue to negotiate favorable con- Physicians support plan consulting firm for allegedly tem’s creditors 80 cents on the dol- throwing off the plan’s projections tracts with insurers and vendors. but dr.anthony gagliardi,medi- bungling the job. lar,the plan has a good chance of be- that the hospital system will soon That task that will fall on the new cal chief of St. Vincent’s Manhat- “People were down when I ar- ing approved by the creditors be producing a profit of between chief executive when the system is tan and a 25-year veteran of the rived.This was a place that was em- committee. Jennifer Cunningham, $55 million and $60 million before out of bankruptcy and Mr.Sansone hospital system,says the physicians barrassed by the bankruptcy and the a consultant representing 1199 interest, taxes, depreciation and departs. are energized by the turnaround sideshow of all the consultants,”says SEIU, says that, as a major creditor, amortization. Regaining the confidence of the plan and the prospect of a new Mr.Sansone.“It was a matter of get- the union likes the proposal. system’s doctors and patients is crit- hospital. ting everyone going in the same di- “There’s a strong likelihood we will Waiting for nod ical. So far, its 250 active physicians Another boost will be the Berg- rection, but now they are.” vote for it,” she says. Lawyers repre- there is also a question as to continue to admit patients. But er panel’s recommendations to close senting other creditors did not re- whether the state will give the nec- Mike LaPenna, a Michigan con- the flagship’s rival Cabrini Medical COMMENTS? [email protected]

CONTACT INFORMATION Bankers aim to buy NY assets THE CRAIN’S BEAT SHEET Continued from Page 1 Bankers list a number of areas sold toll roads to private firms.Michi- being talked about that aren’t in any- outside of transportation that are gan is putting its lottery on the block, REPORTERS MIRIAM KREININ SOUCCAR body’s budget and realized they to- ripe for outsourcing to private and New Jersey is selling the Turn- SENIOR REPORTER taled $70 billion,”says one executive firms: building schools, operating pike and the Garden State Parkway. AARON ELSTEIN SENIOR REPORTER e-mail: [email protected] at a major investment bank. “The prisons and running any of the Deals with private firms provide e-mail: [email protected] Covers the business of arts, culture. Port Authority,in particular,is posi- state’s 15 insurance funds, from large infusions of cash. The city of Covers Wall Street. BARBARA BENSON tioning itself so the demand will be workers’ compensation to unem- Chicago, for example, netted $1.83 LISA FICKENSCHER SENIOR REPORTER REPORTER so overwhelming, it’ll have to turn ployment benefits. State assets be- billion when it leased its six-lane e-mail: [email protected] e-mail: [email protected] to the private sector. Otherwise, the ing mentioned include three televi- Skyway for 99 years. Covers the tourism, restaurant Works on Health Pulse newsletter. projects won’t get done.” sion stations and OTB, which is and hotel industries. The authority wants to build a losing money. Critics’ comments ELISABETH BUTLER $7.2 billion commuter rail tunnel “We have somehow turned gam- however, critics argue that these MATTHEW FLAMM SENIOR REPORTER REPORTER e-mail: [email protected] e-mail: [email protected] under the Hudson River, a plan that bling into a money-loser,”one bank- transactions take away voters’ rights Covers media and entertainment. Covers retail and apparel. has won the endorsement of U.S. er laughs. to approve spending or toll hikes. senators and governors on both Furthermore, the government offi- TOM FREDRICKSON ERIK ENGQUIST sides of the river. However, officials cers making these deals often lack SENIOR REPORTER REPORTER have identified only $2.5 billion in ‘In theory, the the negotiating skills and resources e-mail: [email protected] e-mail: [email protected] funding. Mr. Spitzer doesn’t control that private executives have. Buzz Covers banking, energy Covers politics and government, and the New York economy. works on Crain’s Insider newsletter. the agency, but he plays a role in private sector is Paaswell, who runs the City Univer- spending decisions. sity of New York’s transportation re- SAMANTHA MARSHALL AMANDA FUNG better at meeting search center, says the Skyway lessee SENIOR REPORTER REPORTER Responsible financing negotiated a bargain-basement price e-mail: [email protected] e-mail: [email protected] several state agencies, includ- quality targets’ because city officials did not account Covers education, and international Covers technology and telecom. ing the governor’s office, declined for the value of low future risk. business and trade. HILARY POTKEWITZ requests for interviews. A Port Au- “On the Chicago Skyway, the ANNE MICHAUD SENIOR REPORTER REPORTER thority spokesman said, “We ex- general consensus is that it’s a short- e-mail: [email protected] e-mail: [email protected] plore a variety of partnerships on our term success for Mayor [Richard] Covers politics and government, Covers legal issues and transportation. projects that will help finance them A key advantage of public-private Daley,” Mr. Paaswell says, “but it’s a works on Crain’s Insider newsletter. responsibly and add value.” partnerships is the management ex- long-term disaster.” GALE SCOTT Besides the tunnel,candidates for pertise of individual companies. Fiscal watchdog Ronnie Lowen- JULIE SATOW REPORTER SENIOR REPORTER e-mail: [email protected] privatization include the Tappan Zee “In theory,the private sector does stein of the New York City Indepen- e-mail: [email protected] Covers hospitals and insurers, Bridge, the Peace Bridge connecting a better job of meeting quality and ef- dent Budget Office adds that gov- Covers commercial real estate. works on Health Pulse newsletter. western New York and Canada, the ficiency targets,” says Raymond ernments spend unwisely if they use Second Avenue subway and an ex- Horton, director of the social enter- one-time proceeds to pay ongoing press train from Manhattan to JFK prise program at Columbia Univer- expenses. that he ultimately chose to hold on at … alternative financing mecha- International Airport. Bankers are sity’s business school.“How success- In addition, moving state assets to assets rather than risk fights with nisms, such as public-private part- also discussing applying a toll to ful the partnerships are depends on into private hands can jeopardize labor groups. nerships, that can expand financial portions of Routes 84 and 287 north how the parties behave after the fact.” projects’ labor agreements and oth- However, Mr. Spitzer has resources.” of New York City, as well as Route Such partnerships are in vogue. er rights won by unions.People who opened the door. During a speech 17 in southwestern New York. Illinois,Indiana and California have worked for Gov. George Pataki say last May, he said, “We have to look COMMENTS? [email protected]

manager of ready-to-wear at up appointments with buyers from Bloomingdale’s, a chain that lately Henri Bendel and Neiman Marcus. New designer takes a beating has been giving more space to such In anticipation of at least one large designers. “We try to pick people order, he’s lined up production Continued from Page 3 more popular with such players in sends a team to as many as 75 shows that have great potential.” sources in China and sorted out some er this month, when magazine edi- recent years. during Fashion Week and pursues Gen Art paid for Mr.Tam’s show financing to help cover costs. If all tors and retail buyers converged on the most promising leads over the because its executives believe that goes well, Mr.Tam will start moving New York.Form’s show was held in a Hurry up and wait following month. “There has to be Form is ready to woo big-time buy- toward his five-year goal of selling Chelsea warehouse near the West “the stores are so competitive to chemistry between the designer and ers. “Form’s people are polished, at- Form to a major company such as Side Highway as part of a two-hour get the new hot designer,”says Mary us,” says Henri Bendel Chief Exec- tractive, young and energetic,” Ms. Gucci, which could turn it into a installation sponsored by entertain- Gelhar, vice president of brand utive Ed Bucciarelli. “They need to Gelhar says. global fashion house. ment group Gen Art. strategy at Gen Art. “But the ques- be able to come up with fresh ideas “We don’t want to do the suffer- The event, which included two tion is, how do you stay in business consistently.” One big order ing and worrying in the studio,” Mr. other brands, attracted some of the long enough when all the stores are Even department stores are tak- still, the line desperately needed a Tam says. “We want to be taken se- industry’s biggest retailers. saying, ‘We want to watch you for ing more interest in emerging tal- break, and Gen Art’s support could riously by the people who matter in Though most important buyers one more season’?” ent. Picking the next hot brand is “a not have come at a better time. fashion.” attend the main shows at Bryant Henri Bendel, a specialty store blend of art and science,” says Frank “They saved our lives and our sea- Park, smaller venues have become known for carrying trendy wares, Doroff, general merchandising son,” says Mr.Tam, who has follow- COMMENTS? [email protected]

8 | Crain’s New York Business | February 19, 2007 Chinatown recovery comes slowly, despite improvements Continued from Page 2 pig race to commemorate the Year borhood stems from a grassroots volvement. The area may need even older part of Chinatown. of the Boar, are expected to draw business association that finds its more outside help as the Lower East NEIGHBORHOOD Turning the neighborhood into a many thousands more. own funding for advertising and Side’s booming real estate market more attractive tourist destination is promotional events. threatens to raise shop owners’ rents CLEANUP exactly what local community or- The case for cooperation Mr.Liu agrees that business own- and shrink Chinatown. October 2006 through January 2007. ganizations have been attempting mr. chen, a longtime advocate for ers must pull themselves up by their Even the success of the Clean TRASH COLLECTED (LBS.) to do. The Chinatown Partnership Flushing’s Chinese community be- own bootstraps and maintain some Streets campaign may be fragile and 2,025,725 Local Development Corp. was fore joining the partnership, hopes of the improvements the partnership short-lived. At Christmas, when LAMPPOSTS PAINTED 728 formed just over a year ago with the success of these events—involv- has already made. Fish merchants Mr. Chen took his street-cleaning funding from the Lower Manhattan ing collaboration between nonprof- and food stalls, for example, could team out for lunch in midtown, FIRE HYDRANTS PAINTED 242 Development Corp. to help rebuild its and businesses—will give locals a find more appealing ways to display Chinatown’s 275 garbage cans were MAILBOXES PAINTED 111 the neighborhood. But six years af- taste of what can be achieved with their wares and not use the curb as a overflowing after just a few hours. PEDESTRIAN CROSSING ter Sept. 11, despite impressive more cooperation. After studying garbage disposal. But some changes, “It’s like your laundry,” he says. LINES PAINTED 50 progress, Chinatown still hasn’t re- North America’s most prosperous such as adding streetlights, a pedes- “It keeps coming back again.” Source: Chinatown Partnership Local covered from some of the worst eco- Chinatowns, he determined that trian overpass for Canal Street and Development Corp. nomic aftershocks of the attack. the success of Vancouver’s neigh- more parking spaces, require city in- COMMENTS? [email protected] In the last five months, the part- nership has secured more parking spaces,cleared more than 1,000 tons of garbage through its Clean Streets campaign, and drawn thousands more tourists and day-trippers with food and shopping promotions for occasions like the Moon Festival and this week’s events. “Word on the street is China- town has never been cleaner,” says Wellington Chen,executive director of the partnership. “Of course, it’s not just about that,but if you want to draw business here, your shoes should not stick to the sidewalk.” It’s too early to tell if more pristine pavements have helped cash registers regularly jingle. In any event, China- town still hasn’t fully recovered. And many shop owners still seek a more sustainable,year-round flow of shop- ping traffic and fear that the partner- ship’s progress will be lost once its $5.4 million in LMDC grant money runs out, in about three years. Looking for lasting solutions “it’s an uphill battle, and busi- ness has not picked up as fast as we would like to see,” says John Wang, president of the Asian American Business Development Center. “There need to be broader, longer- I TRUST: CompUSA to keep term solutions.” About 250,000 people were em- ployed in the four ZIP codes cover- my technology ing Chinatown and surrounding ar- eas in the second quarter of 2004, according to the Asian American running. Federation.That’s up from 243,000 in the same period in 2003, when employment hit bottom. Trust CompUSA to provide the technology services that you need when and where you need them. Our national It’s not clear if the upward trend is continuing. Proprietors such as network of more than 10,000 TechPros is available 24/7 on-line or via phone, in any of our 229 stores nationwide, Mr. Liu say sales are down for shops and offers guaranteed next day on-site service*. From the simplest memory upgrade to design and deployment of a like his.But anecdotal evidence sug- multi-site network our CompUSA TechPros are standing by. It’s like having your own IT department – except we have gests that businesses in Chinatown a 98% customer satisfaction rating. are diversifying. More banks, insur- ance companies and professional of- fices like medical practices and real estate brokers are arriving, says Howard Shih, data manager for the For more information on how federation, which is compiling the we can help your business, most recent data from the state for call 1.866.4CompBZ or visit an economic report due out in two months. www.compusabusiness.com. The partnership,meanwhile,has taken on the role of marketing agency for Chinatown. It lured about 100,000 people with its Taste of Chinatown campaign last Octo- Technology services professionally delivered. Utilizing a nationwide ber. The Lunar New Year flower network of more than 10,000 on-site and in-store CompUSA TechPros, market, organized by the Museum we can install, maintain, and upgrade your business’ technology. We of Chinese in the Americas, attract- also have live technical support available online or on the phone 24/7. ed more than 150,000 visitors last *Call 1-800-CompUSA, option 6, or go online by 3 p.m. local time to schedule year and expects at least 100,000 this next day service. Certain conditions apply. Visit www.CompUSA.com/techpro week, despite the cold. And this for details. 37572 1/07 week’s New Year festivities, com- plete with Grucci fireworks and a

February 19, 2007 | Crain’s New York Business | 9 Ex-floor traders’ life after Street SAVING THE LORE OF THE FLOOR CAITLIN ZALOOM KNOWS ABOUT the troubles faced by former floor traders. Continued from Page 1 quickly the opportunity is vanish- change, the world’s largest market- Before entering academia, she was a runner at the Chicago Board of teaches at New York University and ing. As recently as two years ago, place for crude oil, electronic trad- Trade back when it started the transition to electronic trading; she was who wrote a book about the cultur- floor traders at the New York Stock ing volume hit 625,000 futures con- working as a trader at the London International Financial Futures Exchange al shift taking place at exchanges, Exchange dealt with about 90% of tracts per day in January, a fivefold when it shut its trading floor entirely in 2000. called Out of the Pits. all orders; now they handle 20%. increase over year-earlier levels. Last October, she published a book about how computers are Meanwhile, orders sent to the floor Many former traders made big transforming exchanges. Now she plans to gather oral histories from floor money—generating incomes in the dropped by 30%, to fewer than traders, before their jobs join ticker tape and top hats on Wall Street’s high six figures and up—even if they ‘I doubt more than 400,000 contracts per day. lacked M.B.A.’s and fancy pedi- extinction list. grees. Ms. McBurney, for example, 10% will make Exploring options “You know something is really dead when a professor shows up with a has a fine arts degree from the Par- ms. mcburney says she’s exploring tape recorder,” she says. sons School of Design, and she successful lots of career paths, but she hopes to worked as a jockey at two New Jer- join a money management firm as a sey racetracks before heading to electronic traders’ trader. Many other floor traders are on the Nymex floor at the end of able to make as much as $80,000 a Wall Street. trying new professions, however. 2005 and spent most of last year fig- day by watching others and sensing “People didn’t need connections John Barrett left the stock ex- uring out his next move. He finally where the market was going. For or a Harvard degree to make it as change last summer after more than decided to convert the garage be- those trading over screens,it’s tough floor traders,”says Ms.Zaloom.“All 20 years on the floor. He is trying to hind his Staten Island house into a to generate half that amount,in part they needed was a little money and Firms with large floor-trading op- get a job as a compliance official at trading desk. because the visual and aural cues are a high tolerance for risks. That op- erations, such as LaBranche & Co. a brokerage firm, or as a school- Mr. Carboni has invested absent. portunity is going away with the and Bank of America, have let go of teacher near his New Jersey home. $50,000 in equipment, including a “Your lifestyle invariably rises up abandonment of the trading floor.” hundreds of employees. He has taken courses at Monmouth Toshiba laptop and five wall clocks to the amount of money you make, The numbers illustrate how At the New York Mercantile Ex- University toward his teaching cer- displaying the time in London, so a lot of ex-floor traders are in for tificate and has done some substi- Tokyo and other market centers. painful adjustments,” says Bob Mc- tute work. But he hasn’t found full- The 42-year-old father of three Cooey, a former stock exchange time employment yet. now trades futures contracts from trader who joined Nasdaq last No- “I’m 48 years old and the father his computer, sometimes working vember as a senior vice president. of four girls,” Mr. Barrett says. “My 22 hours a day. He posts market Still,ex-floor traders hardly need feet are to the fire.” commentaries on YouTube six to apply for relief. Those who A flying leap into the unknown days a week in hopes of building a bought exchange memberships for a poses too great a risk to suit most following. few thousand dollars decades ago floor traders, so many of them are hit particularly big jackpots: Their trying to reinvent themselves as The mother of reinvention stakes were turned into shares when electronic traders. The trouble is if the venture pays off, Mr. Car- the exchanges began trading pub- that the attributes that made these boni wants to move his family to Las licly last year, and are now worth individuals successful on a rough- Vegas, where he would continue millions. and-tumble trading floor—a loud trading, build a consulting business That fortunate development voice and a keen ability to read a ri- that would teach other people to gives people like former Nymex val trader’s body language—are of trade, and develop a home renova- trader Dan Dicker the breathing no use to someone making trades on tion business. room to keep looking for the right a computer screen. “You’ve got to reinvent yourself,” opportunity. Savvy screen traders have a dif- says Mr. Carboni, who dropped out The 46-year-old father of two, ferent profile. Many have advanced of the College of Staten Island and who studied biochemistry at SUNY degrees in mathematics or comput- quit a job slicing cold cuts at Wald- Stony Brook before becoming an oil er science, and they all have the fin- baum’s 25 years ago to trade metals trader,wants to get a job with an en- ger speed of an expert video-game at Nymex. “No sense crying over ergy company. He’s starting to get player. what was but isn’t anymore.” itchy. “I doubt more than 10% of floor The most difficult adjustment “When I left the floor in June, I traders will evolve into successful for floor traders may be that what- assumed I’d be settled by Labor electronic traders,” remarks Ms. ever profession they choose, they Day,” Mr. Dicker says. “Here it is Zaloom. will probably never earn anything February, and I’m not settled yet.” get on the grid Michael “Oscar” Carboni is try- close to the money they raked in be- ing to beat the odds. He left his job fore. Ex-floor traders say they were COMMENTS? [email protected] in a new york minute pre-builts at the skygrid building

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10 | Crain’s New York Business | February 19, 2007 NEIGHBORHOOD JOURNAL

grants increased 55%, while self- employment among native-born Myrtle Avenue fights for attention residents fell 14%. The growth in immigrant- The explosion in the number of of job creation. Aided by the explo- and job creation.” owned businesses in many neigh- Many people don’t new businesses was especially pro- sion in new businesses, employ- He notes that the census num- borhoods is not simply tied to pop- know about revival; nounced in Queens, where nearly ment in Jackson Heights rose by bers for self-employment show ulation gains, Mr. Bowles says. half of the heads of households are 28%,and in Flushing by 12%.In the comparable gaps between newcom- Jackson Heights, the commercial Queens takes lead foreign born. In Flushing, the num- city as a whole, employment rose by ers and native-born residents.In the center for the city’s South Asian ber of new businesses soared by 55% less than 7%. Bronx, for example, self-employ- community, actually has very few in new businesses in the decade. In nearby Elmhurst, “It’s pretty well known that im- ment among immigrants grew by South Asian residents. Many peo- the number of businesses jumped migrants have been starting enter- 72% in the decade ended in 2000.At ple, though, come to shop and eat. recent survey by the 25%, while in Jackson Heights the prises,” says center Director Jon- the same time, self-employment “The growth is all about the Myrtle Avenue Busi- number grew 14%. Those figures athan Bowles, author of the report. among the borough’s U.S.-born businesses that have set up there, ness Improvement compare with a citywide average “But these ethnic neighborhoods population actually shrank by 2%.In drawing people from all over the re- District drew 900 re- growth of barely 10% in the period. are far outpacing the rest of the Queens, the picture was similar. gion,” he says. sponses and confirmed The picture was similar in terms city in terms of business creation Self-employment among immi- —hilary potkewitz Awhat many people who live and work near that Brooklyn shopping strip had long suspected. “It was dramatic, the number of people who go to Manhattan or Park Slope to get some pretty basic items, like organic produce, fresh fish or meat,” says Michael Blaise Backer, executive director of the Myrtle Avenue Brooklyn Partner- ship, which is composed of the BID and a local development cor- poration. One problem is that while Myr- tle Avenue’s commercial mix is changing, many people in Fort Greene and Clinton Hill don’t real- ize it. “They’re thinking of the old

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ca branch to launch a “Home Grown ARTIST’S RENDERING & Locally Owned” marketing cam- paign. The effort will spotlight 18 merchants on postcards and plac- ards.Each participant paid $350 to- ward the graphic design, photogra- phy and printing costs. Most of the expense was picked up by the BID. —erik engquist

Enterprising GOLF VIEW, DEEP WATER AND OCEANFRONT HOMESITES PRICED FROM $600,000 TO $1.4 MILLION+ immigrants GINNSURMER.COM 877-820-0500 the rate of new business creation in some immigrant-heavy neigh- Obtain the Property Report required by Federal Law and read it before signing anything. No federal agency has judged the merits or value, if any, of this property. Prices, plans, artist's renderings, photos, land uses, dimensions, borhoods was as much as five times specifications, improvements, materials, amenities and availability are subject to change without notice. Ownership of a residence at the Development does not grant the use of or access to any golf course or other recreational the city average in the decade end- facilities (“The Club”) to be located at the Development, and membership in the Club will be subject to payment of dues, rules and availability. Use of amenities is subject to Membership requirements. This is not an offering of real property or condominium units and offers may only be made at the Discovery Center for the Development. This is NOT an offering of real property or condominium units within the State of New York. Void where prohibited by ing 2004, according to a new study law or where there are other qualifications to advertising real property. Ginn Real Estate Company, LLC, Licensed Real Estate Broker. 2/07 from the Center for an Urban Fu- ture.

February 19, 2007 | Crain’s New York Business | 11 VIEWPOINT How to save garment district editor in chief Rance Crain Jill R. Kaplan n 2004, as the Bloomberg administration worked years, apparel manufacturing employment has fallen 65%, or publisher feverishly to win support for its rezoning of the far 50,000 jobs; nearly 20,000 of those were lost during Mayor EDITORIAL editor Greg David West Side, officials made a deal with the unions Michael Bloomberg’s five years in office. managing editor Richard Barbieri representing New York’s dwindling number of Today, says Ms. Burden, the garment center is no longer a projects editor Cynthia Rigg deputy managing editors Valerie Block, apparel workers.The city would protect jobs by desirable place to work precisely because of the poor condition Erik Ipsen leaving rules that limited the conversion of of many office buildings. Lifting the restrictions will help lure columnist Alair Townsend senior reporters Aaron Elstein, manufacturing space in the garment center landlords who will refurbish their properties and attract a Lisa Fickenscher, Matthew Flamm, essentially intact; in return, the unions would Tom Fredrickson, Samantha Marshall, variety of industries to give the center new life. Anne Michaud, Julie Satow, support the Hudson Yards plan. The area has already shown its appeal to design Miriam Kreinin Souccar I reporters Barbara Benson, Elisabeth Butler, Now, the administration is about to change firms, arts groups and other creative Erik Engquist, Amanda Fung, Hilary Potkewitz, course. Amanda Burden, chair of the city companies, all of which would be compatible Gale Scott restaurant critic Bob Lape Planning Commission, disclosed at a Crain’s with the fashion company headquarters art director Steven Krupinski breakfast forum last week that the city will everyone wants to keep in the area. deputy art directors Carolyn McClain, Daniel Mednick eliminate most prohibitions on office space The devil will be in the details.The first step staff photographer Buck Ennis uses in the garment district.This plan is is to figure out how much manufacturing space copy desk chief Wendy Zuckerman copy editors Michele Arboit, Leslie Jay, welcome and long overdue. is needed now and for the future.The city is Thaddeus Rutkowski The story begins in 1987. Ignoring the consulting with garment center unions and research editor Denise Southwood associate research editor fundamental forces that were buffeting the says it will continue to try to help Adrianne Pasquarelli garment industry, the city decided to try to manufacturers. It is best if the city does so www.NewYorkBusiness.com online editor Catherine Tymkiw preserve garment jobs through zoning rules. through incentives, not restrictions. Ms. online reporter David Jones

It required that landlords who convert side Burden also says that the city’s plan will EDITORIAL AND ADVERTISING OFFICES street factory buildings to offices or prohibit residential use.The proposal is 711 Third Ave., New York, NY 10017-5806

bekka lindström bekka editorial: 212.210.0277 Fax 212.210.0799 showrooms create an equivalent amount of laudable—as a way to preserve affordable office advertising: 212.210.0259 manufacturing space somewhere else in the area—which no space—but a residential restriction would need to be reviewed Cable craincom nyk Fax 212.210.0499 one ever did, because there was no demand for such space. periodically, in case the area falters as an office district. Entire contents ©copyright 2007 Crain Communications Inc. All rights reserved. Over the years, the city made minor changes to the The moral of the story is that zoning is especially subject ®CityBusiness is a registered trademark of MCP restrictive zoning, while some owners ignored the rules and to the law of unintended consequences. Few foresaw that Inc., used under license agreement. converted properties anyway.The special zoning initiative protecting manufacturers would stifle a key district in the TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. was a failure. It depressed real estate values, discouraged city, push up rents in more desirable areas and probably even $3.00 a copy, $59.79 one year, $109.79 two years. reinvestment in properties suffering from neglect and, most force some companies to leave New York. Hopefully, the city www.NewYorkBusiness.com important, failed to stem the decline in jobs. In the last 10 has learned its lesson. ADVERTISING AND MARKETING advertising director Vanessa Cognard business development manager Robert N. Grossman senior account managers LETTERS TO THE EDITOR Holly A. McKeown, William E. Squitieri account executives Andrew Carlin, Derek Reese, Jennifer Siniscalchi, Brigitte Stieglitz western account manager Ellen Mazen (Los Angeles) 323.370.2477 Veterans deserve better from city sales manager, classified print & online John Gallagher DISSERVICE TO THOSE I doubt that many people Contrary to the story, Mr. newsletter product manager would join the armed forces if they Bloomberg doesn’t seem willing to Catherine Evans Gittens WHO SERVED sales coordinator, print & online were told they would merely be consider proposals for city resource Lulé Haznedari crain’s jan. 29 story on given a list of possible resources if centers. sales coordinator Anita Perrino returning veterans, “Nowhere to they needed services for I believe the mayor wants to help credit Pat Grondziak 313.446.6082 turn,’’ raises an important depression, post-traumatic stress veterans, but his administration marketing coordinator Jill H. Bottomley disorder or substance abuse arising needs to stop talking about how assistant circulation manager from their service. they support the troops and vets and Michael Holowchuk nanette white work with the community to come general manager, interactive up with a comprehensive and well- Marc Minardo MAYOR INATTENTIVE thought-out plan. NEW YORK PRODUCTION joe bello production and pre-press director TO VETERANS Michael Corsi advertising production manager

the crain’s article gives the ap images BRING BACK Marilyn DeMilta Bloomberg administration too THE CLASSICS ANN TAYLOR fans hope that Chief Executive much credit for providing veteran Kay Krill can restore the brand’s luster. PUBLISHED BY CRAIN COMMUNICATIONS INC. services.The administration doesn’t the feb. 5 story on the problems chairman Keith E. Crain understand the community’s issues at Ann Taylor and the Loft hit the president Rance Crain or concerns and does things nail right on the head. woman looking to update my secretary Merrilee Crain treasurer Mary Kay Crain piecemeal, with no real input from I have been a fan in the past, seasonal outfits, I walk in the executive vp, operations William Morrow the veteran community. but not so now. As a professional See LETTERS on Page 14 senior vp, group publisher Gloria Scoby group vp, technology, circulation, manufacturing Robert C. Adams buck ennis vice president/production & VETERANS like John DeVito should get more WHAT’S COMING UP IN CRAIN’S? manufacturing David Kamis from the government than a referral list. corporate circulation director Business Small Real Spring Patrick Sheposh of law business estate residential founder G.D. Crain Jr. (1885-1973) question: Is this the best we can do chairman Mrs. G.D. Crain Jr. (1911-1996) for our soldiers? Our government report report report real estate guide has a funny way of showing how Feb. 26 March 12 March 19 March 19 valued they are.

12 | Crain’s New York Business | February 19, 2007 GVA Williams is Pleased to Announce

the completion of the Recent Transactions Include: following transactions at Collegiate Asset izens Budget Commission, only 500 FIFTH AVENUE Management Corporation 38% of private employers with 200 William H. Kinn “The Smartest Corner or more workers offer health insur- Kinn Real Estate Counselors LLC ance to retirees,and very few pay the in Midtown” full premium. Dragados USA, Inc. Marc S. Miller Private employers are also facing Miller & Partners grim numbers for the wildly escalat- ing costs of health care for their ac- Miller, Canfield, Paddock and Stone tive and retired employees. Tatiana Tarassenko I think it’s wrong for companies Studley, Inc. to renege on promised benefits once people have retired,but some are do- International Foundation ing it anyway.Delta Air Lines recent- for Art Research ly told its retirees that their health in- Randy Sherman surance was over. Gone.Too bad. MHP Commercial Brokerage New York City should not do this. But it must begin to bring its Kirk Palmer & Associates, Inc. benefits more in line with those re- Jeffrey Zund ceived by the people who are paying Kenneth Zund Realty Associates, Inc. the tab and more in line with what it I-Latina, Inc. can afford. GVA Williams That’s why it was so dismaying that the mayor reached agreements E-Style Software Corp. about wage increases with several of GVA Williams the largest city employee unions john h.john howard while explicitly leaving discussions about health care and pension ben- For leasing information, contact: efits for some unspecified later date. That’s like serving an 8-year-old a Harry F. Blair rich dessert and then telling him he 212.716.3741 Health care fix [email protected] should, pretty please, eat his brus- sels sprouts. Sean Kearns It’s impossible for the mayor to 212.716.3715 for a sick system win changes in pension benefits for [email protected] current employees.The state consti- tution prevents any diminution of ere’s a chilling number: The future cost of promised retirement benefits once Realize Your Value someone has gone on the public health care for New York City’s retired public payroll. But municipal unions have employees is an astonishing $53.5 billion. The failed to win similar guarantees for city has been providing these benefits on a pay- health insurance. So there is an as-you-go basis, through annual appropria- opportunity to change health care benefits for both active and retired Htions that total $1.1 billion this year. employees through collective bar- New accounting rules have forced state and local govern- gaining. Free health insurance is an ments to calculate the negotiations. anachronism in 2007. Both active future costs of their By any yardstick, re- and retired city employees should health care promises. tirement benefits here pay something for their health care. For now, the costs only are out of line.They are CBC estimates that the city would need to be disclosed. far more generous than save nearly $450 million this year if But soon, these govern- those received by many retirees paid 50% of their health in- ments probably will be of the taxpayers who surance premiums and all of their required to fund the ob- foot the bill. Medicare Part B premiums. ligations the same way Few of us in the pri- I’m not comfortable with chang- they finance and ac- vate sector get free ing the rules for current retirees. count for pension costs. health insurance either New rules should apply prospec- That will be trouble ALAIR as active or retired em- tively, say, for all employees five in many states and lo- ployees, but city em- years or more from their earliest re- calities, including New TOWNSEND ployees do.City taxpay- tirement age. York City, where poli- ers even pay the full cost Brussels sprouts are part of a bal- tics rather than economics have of Medicare Part B premiums for anced diet; changes in retiree health prevailed in health care benefit doctors’visits.According to the Cit- insurance must be made.

CRAIN’S ONLINE POLL Brookfield Properties DO YOU AGREE WITH GOV. SPITZER’S SUGGESTION is pleased to announce THAT IT’S TIME TO REPLACE ASSEMBLY SPEAKER SILVER? BNP Paribas RCC, Inc.

NEARLY THREE-QUARTERS of the 280 poll No, Mr. Silver 7% has leased 110,000 square feet at is a strong . respondents agree, saying the Manhattan defender of New York City interests Newport Tower, Jersey City Democrat is hindering reform in Albany. .20% One-fifth think Eliot Spitzer is going too far; No, it’s up to the Yes, Mr. Silver John Cefaly and Gus Field of Cushman & Wakefield it’s not the governor’s place to decide who Assembly, not the 73%. is a roadblock governor, to select to reform in represented BNP Paribas RCC, Inc. should be speaker. A mere 7% back the speaker Albany Sheldon Silver, saying he has New York Paul Glickman, Frank Cento, Edward Duenas and City’s best interests at heart. Adam Goldenberg of Cushman & Wakefield represented Brookfield Properties For this week’s question: Go to www.NewYorkBusiness.com/poll to have your say. www.brookfieldproperties.com LETTERS TO THE EDITOR

Continued from Page 12 misguided. Note only three recent money to pay hundreds of millions Shaw Logistics that it is highly misleading to company’s stores, look around and revelations: of dollars to get rid of poor chief characterize the required testing as head right for the door. I don’t even ● One of the largest financial executives those boards had the SCRUTINY BENEFITS “useless.” use gift certificates my children services firms in the world used the poor judgment to hire in the first THE SHAREHOLDERS To the contrary, careful have given me. tragedy of Sept. 11, 2001, to hide place. documentation and testing never I’m looking forward to chief from lawsuits against it, saying that The list goes on and on.To it seems executives believe before performed have resulted in executive Kay Krill bringing back pertinent e-mails and other suggest that the financial services anything that has a cost is a worthy the discovery and correction of the classic looks we’ve all come information were lost in the industry is in danger because of target for cutbacks or, better yet, procedural and processing flaws accustomed to with Ann Taylor. disaster. excessive regulation is absurd. elimination.True, SOX, as it is that put significant amounts of patricia boardman ● Numerous corporations Never before have so many paid referred to by insiders, has imposed investors’ funds at risk. nationwide have been found to be themselves so much to the benefit a great deal of work on businesses miriam s. michel BUSINESS HAS ONLY stealing from shareholders and the of so few.The sector is in danger that they would otherwise not do. Risk documentation specialist ITSELF TO BLAME public by backdating stock options because of its own greed and But [as] someone who has with impunity. shortsightedness. actually worked on SOX ● TOUGH-GUY ROUTINE crain’s point of view in “Making The boards of public david shaw documentation and seen the many ISN’T THE WAY TO GO Sarbanes-Oxley case” ( Jan. 29) is companies are using shareholders’ President flaws it has revealed, I would say here is a message for the Spitzer Admiration Society (“The next Albany confrontation,’’ Feb. 12). There is no way Spitzer will survive until he learns to disagree without United Way of New York City Women United in Philanthropy

Join Us in Saluting 12 Exceptional Women Leaders Creating Lasting Change in Our Communities bloomberg newsbloomberg o ooooo oooooo GOV. ELIOT SPITZER must tone down his approach if he wants to achieve anything.

Carolyn Cassin Dr. Eda Harris-Hastick Rose Pierre-Louis being so obnoxious. His bare Continuum Hospice Caribbean Chamber of Deputy Borough President, knuckles, obscenities, short fuse Commerce Manhattan and general abusiveness will get Ruth Clark him nowhere and keep him there. The Support Network, Inc. Pamela Kersey Amanda Pullinger New York does not need an JPMorgan Chase Aquamarine Capital anti-Pataki. We need a governor Jeanette Corey Management who is not another dysfunctional Phipps Head Start Nikki Lanni Albany midget. Mutual of America Wendy Rowden arthur springer Pamela Haas The Rockefeller Group IBM Jeanne Murtaugh The Bank of New York CRAIN’S ARTICLES Dr. Regina S. Peruggi STORIES CAN Kingsborough College BE REPRINTED,

oooooo oooooo POSTED ONLINE CRAIN’S OFFERS REPRINTS of Women United in Philanthropy’s First Annual Awards Luncheon published articles, which can Tuesday, February 27 at The University Club include black-and-white or color photos that accompany the story. To obtain an estimate, contact Lori Noffz at Reprint Management Services, (717) 399-1900, ext. 104, or [email protected]. Readers wishing to make their Women United in Philanthropy is a special United Way of New York City initiative that own reprints or to post a story on connects philanthropic giving, advocacy on critical human services issues, and volunteerism a Web site must pay $350 for the among women leaders passionate about making a difference in the community. Women United use of the Crain’s copyright; the advances United Way's work in fighting poverty in our city, and currently directs its focus fee for nonprofits is $195. toward strengthening early childhood education through its commitment to United Way's Send a letter describing the Quality New York program. article and how it will be used, along with a check, to Jill Bottomley at Crain’s New York Business, 711 Third Ave., New For more information how you can get involved, please call (212) 251-4045 York, NY 10017. For more or visit unitedwaynyc.org information, please call Ms. Bottomley at (212) 210-0282.

14 | Crain’s New York Business | February 19, 2007 exploring his presidential run. Mr. O’Brien was a spokesman for the Metropolitan Transportation THE WORKS Planning oracle speaks THE INSIDER Authority. REVERSING A PREVIOUS POLICY, the Bloomberg administration will soon unveil a rezoning plan for the garment industry that will relax restrictions on by Erik Engquist and Anne Michaud converting manufacturing space into offices, Planning Starrett City buyer Commission Chairwoman Amanda Burden told a marshals defense Crain’s New York Business breakfast forum last week. In a news-filled appearance before 600 business clipper equity is putting to- leaders, Ms. Burden admitted that the administration gether a team to defend its inter- had agreed to preserve garment district zoning to win ests as the firm moves to finalize its textile union support for the conversion of Hudson Yards $1.3 billion offer for Brooklyn’s to office from manufacturing use. But with apparel Starrett City , amid a political industry employment falling, the department of planning controversy over affordable Amanda Burden will issue a new proposal within a month. housing. “The garment center has perhaps the most The firm has retained lobbyist Kasirer Consulting, public relations anachronistic zoning in the entire city,” Ms. Burden said. “It’s a bad place to firm Linden Alschuler & Kaplan, and invest in buildings, and it’s not even a good place to work because of the lack real estate lawyer Leonard Grunstein of investment.” bloomberg newsbloomberg of Troutman Sanders. Mr. City officials will be working with Unite Here and other textile unions to THE INDIAN POINT power plant could get company if a federal program is reinstituted. Grunstein was recently on the balance sewing and design uses with affordable Class B and C office space, other side, representing the tenant Ms. Burden said. Because of the city’s need for such space, the plan would group that lost its bid to buy Peter rule out residential conversions. Stuyvesant Town and Peter Cooper Also at the forum, Ms. Burden: Governor may look at nuclear plants Village in Manhattan. ● PUBLICLY OPPOSED for the first time a plan by Thor Equities to build he spitzer administration is willing to consider residential towers immediately adjacent to a revitalized Coney Island amusement area. The firm’s chief executive, Joseph Sitt, wants to give the new nuclear power plants for New York if there are Wile E. Coyote boardwalk a $2 billion makeover but insists that the residences are needed Tchanges in national policy. campaign lit to make the project work financially and ensure foot traffic. He is seeking a Judith Enck, the governor’s deputy secretary for the rezoning that would accommodate his project. environment, met with nuclear power proponents last week aiming to stand out in a ● ANNOUNCED THAT the Planning Commission will consider proposals for and told them that building plants would be an option if the crowded field of candidates for an skyscrapers that would top the 512-foot Williamsburgh Savings Bank open City Council seat in building, Brooklyn’s tallest. Late last year, Atlantic Yards developer Forest City federal government restarts its nuclear fuel recycling program. Brooklyn, Wellington Sharpe has Ratner Cos. bowed to community objections and agreed to shrink the tallest The effort was abandoned during the Carter administration mailed out comic strip-style tower—nicknamed Miss Brooklyn—in its $4 billion arena-office project so but could be revived because attempts to permanently bury literature lampooning Joel Klein. It that it would not eclipse the bank building. Designed by architect Frank portrays the school chancellor as a spent fuel have failed. France, Britain, Russia and Japan recycle Gehry, Miss Brooklyn would have measured 620 feet. self-serving bungler and notes that ● SAID THE CITY is looking for more areas to rezone for residential use to nuclear fuel. A U.S. program is at least 10 years away, however. Mr. Sharpe has been endorsed by encourage housing construction and relieve pressure on soaring home About 27% of New York’s electricity comes from nuclear CSA, the principals’ union. CSA, prices. Previous zoning changes allow for as many as 265,000 additional which is seeking a new contract, is housing units, enough to accommodate the 900,000 new residents the city plants, which produce no greenhouse gases. at odds with Mr. Klein.The United is expecting in the next 25 years. But more units are needed to keep prices Federation of Teachers will help Board Chair Patricia Jones says distribute the flier, which was and rents from skyrocketing. Suits won’t stop Mr. Masyr would be paid only “at designed by the MirRam Group. ■ Atlantic Yards the discretion and initiation of the LDC.” pending lawsuits against Atlantic Yards will not stop Forest City Ratner from proceeding with Presidential the Brooklyn project, a company source says. Architect Frank Gehry is notes revising his design to reflect the barack obama (below) hasn’t compromise that won state campaigned in New York since approval for the $4 billion mixed- announcing his candidacy for use development. When he’s president, but a network of finished, site work will begin. volunteers is organizing here using Two businesses and 26 residents barackobama.com.The first “NYC 4 in the project’s footprint have asked Barack” event, put together with a federal court to declare that the the site’s social networking tools, eminent domain condemnations was held Friday at the Gallery Bar are unconstitutional. on the Lower East Side. A group of prominent New York lawyers will host a fund-raiser LDC lawyer choice for Democratic presidential candidate John Edwards on Feb. 27 at raises questions the Essex House. Manhattan trust the west harlem Local attorney Alexander Forger is Development Corp., which is chairman of the host committee. negotiating a community benefits Other hosts are Fern Schair, former agreement with Columbia chair of the Fund for Modern University, has retained lawyer Jesse Courts, and lawyers Lucas Ferrara, Masyr—in an arrangement Gary Friedman, Jack Hoffinger that’s raising eyebrows. and Alicia Glen, the daughter Mr. Masyr, one of the of Judge Kristin Booth Glen. city’s leading real estate The suggested minimum attorneys, will work pro contribution is $1,000. RSVP bono but could later receive to michael a third-party payment. He milleresq was introduced to @msn.com. the board, along Rudolph Giuliani with other lawyers, continues to expand by a City Hall his campaign staff, staffer and could and has hired Tim have a first allegiance O’Brien as g e to the mayor, says t director of rapid t y i LDC board member m response for

a Nick Sprayregen g . e the committee

s February 19, 2007 | Crain’s New York Business | 15 WEEK IN REVIEW

Omnimedia Inc. named Amy ECONOMIC SPOTLIGHT Wilkins publisher of Martha Stewart Weddings and the media company’s lifestyle magazine, Blueprint: Design Your Life. Ms. Wilkins, who had been publisher of Meredith Corp.’s Country Home, succeeds Sally Preston, who remains publisher of Martha Stewart Living. Food deals private equity firm The Blackstone Group acquired Pinnacle Foods Group Inc., owner of popular product lines like Vlasic pickles and Aunt Jemima pancake mix, in a deal valued at $2.16 billion, including debt. … BLUE SKIES: JetBlue passengers waited for flights the day after last week’s ice storm. NexCen Brands Inc. agreed to buy ice cream chains MaggieMoo’s International and Marble Slab JetBlue’s bad news, good news Creamery Inc. for $37.1 million, marking the company’s entry into JETBLUE AIRWAYS CORP. left hundreds of passengers the quick-service restaurant stranded on planes at JOHN F. KENNEDY INTERNATIONAL industry. AIRPORT for as long as 11 hours during last Wednesday’s snow and ice storm. JetBlue—the largest carrier operating at Nymex stakes Economy Watch JFK—apologized and offered free flights and refunds. Amid Canadian claim the chaos, the airline’s stock nonetheless rose after it was NYC’s unemployment rate stayed below 5% in December, coming in under the the new york Mercantile U.S. figure. The area’s inflation rate edged up after three months of declines. upgraded to “buy” from “neutral” by Goldman Sachs Group Exchange took a 10% stake in NOVEMBER ’06 DECEMBER ’06 COMPARISON Inc. analyst Robert Barry. Canada’s Montreal Exchange Inc.

1 ap images as part of a strategic alliance NYC jobless rate 4.5% 4.3% 4.5% between the North American NYC employment change -2,300 -8,500 +45,9002 Citi folding up Worldwide Inc. to sell and display exchanges.The deal includes a NY area inflation change -0.4% +0.2% +3.3%3 help-wanted ads on the Web.The joint venture to develop Canadian red umbrella logo deal means that all 19 of the energy products. 1-U.S. unemployment rate. 2-Change since December 2005. 3-Inflation rate for the latest 12-month period. citigroup inc. sold the rights to Times Co.’s papers, including The its trademark red umbrella logo to New York Times and The Boston St. Paul Travelers Cos. for an Globe, will co-brand their sites Steiner expands NYC Hotel Stats Broadway Stats undisclosed amount as part of a with Monster. steiner studios, the city’s Room rates crept up a few more Attendance and gross rebounded plan to unify its businesses under second-largest film studio, cents in December, while occupancy modestly in the week ended 2/11, the Citi name and its well-known Tribune sells Hoy formalized plans to renovate a rates retreated, data from PKF The League of American Theatres red arc logo. Citigroup acquired seven-story building in the Consulting show. The averages for and Producers says. Through week the red umbrella image when it tribune publishing agreed to Brooklyn Navy Yard as part of a 2006 were $271.08, vs. $242.89 a 37 of the season, attendance was 8.3 bought Travelers in sell Spanish-language daily Hoy 600,000-square-foot expansion. year earlier, and 85.5%, vs. 86.1%. million, and gross $644.3 million. 1993. New York, which has a daily circulation of 56,000, to rival ImpreMedia, parent of El Diario. Guilty pleas The new owner will hawk the take-two interactive Software paper at transit hubs. Inc.’s former chief executive, Ryan

gettyimages Brant, pleaded guilty to falsifying business records in connection MTV Networks Nasdaq drops with improper options backdating. bid for LSE Mr. Brant, who will receive slashes staff probation under a plea deal, will nasdaq stock market inc. also pay $6.3 million to settle a viacom inc.’s mtv networks dropped efforts to acquire the civil suit filed by federal regulators. cut 250 jobs, or about 6% of its London Stock Exchange after … Myron Olesnyckyj, former workforce, in an effort to trim costs shareholders of the British bourse general counsel of Monster and focus on its digital businesses. spurned Nasdaq’s $5.3 billion Worldwide Inc., pleaded guilty to The layoffs were concentrated hostile bid. Nasdaq, which owns a criminal charges related to an in the company’s television 29% stake in the LSE, is barred options probe at the jobs site Capital IQ’s Weekly Deals Report operations, which include MTV, from renewing its bid for one year operator. Mr. Olesnyckyj, who will Nickelodeon and Spike. under British law. forfeit $381,000 that he got from TRANSACTION SIZE COMPANY (in millions) BUYER/INVESTOR TRANSACTION TYPE stock option grants, was also hit with civil charges by the Securities Spirits Marque One $384.0 Constellation Brands Inc. SB M&A Instinet CEOs Software purchase and Exchange Commission. Manhattan electronic brokerage Instinet, verint systems inc., a Melville, —from staff reports and CBS Corp., $185.0 Cerberus Capital Management FB M&A seven television stations which was recently acquired by L.I., provider of corporate analytic bloomberg news reports Manhattan Japan’s Nomura Holdings Inc., software, agreed to buy Teliris Ltd. $40.0 Fidelity Ventures, Columbia Capital GCI promoted co-presidents John Fay Roswell, Ga.-based Witness Manhattan and Alex Goor to co-chief Systems Inc., which makes Paradigm Spine $13.9 HealthCor Management GCI executives. Messrs. Fay and Goor customer service software, Manhattan succeed Edward Nicoll, who for $950 million in stock. Digital Railroad Inc. $10.0 DN Capita, Venrock Associates, GCI remains chairman. Verint’s parent, Comverse Manhattan Morgenthaler Ventures Technology Inc., Hanger Network Inc. $8.0 Sigma Partners, Kodiak Venture Partners GCI contributed $293 million Manhattan NYT, Monster through a stock purchase. Selected deals announced during the week of Feb. 4 for companies headquartered in metro New York. n/a Not available. GCI: Growth capital investment represents new money invested in a ink online deal company for a minority stake. SB M&A: Strategic buyer M&A represents a minority or majority Media moves acquisition of existing shares of a company without the participation of a financial buyer. the new york times co. forged newsbloomberg bekka lindström bekka an agreement with Monster martha stewart living TAKE-TWO’S Ryan Brant (left) pleaded guilty.

16 | Crain’s New York Business | February 19, 2007 SMALL BUSINESS

racial tensions by pointing to his sil- ver collar bar and telling the jury that Attorney hip-hops to the very top was the easiest way to tell him apart from his towering African-Ameri- can co-counsel, Johnny Cochrane. ficking charges in 1998. Mr. Braf- gun possession and bribery.The law- A heavy dose of Brafman humor Colorful Brafman distinguishes himself man won an acquittal after an yer quickly parlayed his victory into also helps his clients cope with while defending Diddy, other big daddies eight-week trial, with a defense lucrative work representing other public opprobrium. “The power of based solely on cross-examination rappers, like Jay-Z and 50 Cent. a government prosecution is so African-American Yusuf Hawkins; of the government’s own witness- “There is probably no Jewish white overwhelming that it is very impor- BY TOMMY FERNANDEZ four years later, Mr. Brafman suc- es—a rare feat. guy in America now who knows more tant for a bench lawyer to find ways cessfully represented Vincent Ba- “He is a perfectionist,” says Mr. about the rap community,” he jokes. to help the client handle the pres- e’s one of the few sciano, alleged kingpin of the Blue Arabov,a client under federal indict- sure,” says Mr. Weiss, co-founder men whose calls draw Thunder heroin-distribution ring. ment for money laundering in con- How many lawyers does it take ... of law firm Milberg Weiss & Ber- instant responses Since then, Mr. Brafman has nection with his jewelry business. the lawyer’s comedic skills have shad,and a Brafman client in a fed- from New York area landed ever more affluent clients, Mr. Brafman is best-known for always been key to his trial perform- eral investigation. notables including such as Mr. Gatien, a nightclub the acquittal he won five years ago for ances. During Mr. Combs’ trial, Hreal estate tycoon Charles Kushner, king who faced federal drug traf- Mr. Combs, who was charged with 5-foot-6-inch Mr. Brafman eased COMMENTS? [email protected] legal titan Melvyn Weiss, celebrity jeweler Jacob Arabov and nightclub impresario Peter Gatien. Rapper Sean “Diddy” Combs knows him simply as “Uncle Benny.” The man is Benjamin Brafman, who in the past 30 years morphed from a lowly assistant district attorney into the criminal lawyer of choice for deep-pocketed New Yorkers in deep trouble.His midtown firm boasts six lawyers, billing rates topping $500 an hour, a network of ex-clients whom Mr. Brafman can marshal to advise him on current cases, and a drawer full of rejected merger offers. “Six lawyers is really just the right size for what I do,” he says. “I don’t want to be saddled with a hundred or so partners, most of whom would likely just resent me, anyway.” Making his mark in a city chockablock with lawyers, Mr.Brafman has pulled off a difficult trick:standing out.To do so,the for- mer stand-up comic relies on his will- ingness to not only outwork but also outjoke and outact any opponent. “I do not believe I have ever seen a criminal defense attorney who

BRAFMAN BIO BIRTHPLACE Crown Heights, Brooklyn COLLEGE Brooklyn College LAW SCHOOL Ohio Northern University BIGGEST VICTORY 2001 acquittal of rapper Sean Combs on gun charges WORST DEFEAT 1999 conviction of former Suffolk County GOP Chairman John Powell for extortion and racketeering istockphoto

worked harder for each and every client than Ben does,” says David Kelley, former U.S. attorney for the Southern District of New York. Mr.Brafman learned about crim- inal defense as an associate at McGuire & Lawler before going to work in the Manhattan district attor- ney’s office.He then moved into pri- vate practice, starting with $15,000 he’d borrowed from his grandfather, and the same sort of clients he’d pre- viously been working to lock up. As his acquittal rate soared, he moved up the food chain. Early tri- umphs included the 1990 acquittal of James Patino, a white Benson- hurst youth charged with killing

February 19, 2007 | Crain’s New York Business | 17

REAL ESTATE INSIDE CoStar’s top Manhattan leases, top NYC property sales PAGES 30, 32 “The Times Co. building is coming on line as demand is frenzied.” —Mitchell Steir, Studley, Page 24 Four towers take the lead

55 The as the commercial Water New York St. Times real estate market Building Page 21 Page 24 has sprung back in the last five years, some gilded precincts have roared on to new heights, other areas have dusted them- selves off and some have managed to redefine them- PIVOTAL selves entirely. PROPERTIES In each neigh- borhood, one or two buildings have led those changes. In this section, we take a look at four areas and the office towers that have led them: the city’s largest, as well as its 1 667 Hudson Madison newest, its most Square Ave. changed and its Page 27 Page 28 photos by buckphotos ennis very priciest.

be topped in the red-hot market Competition intense for retail condos. SHOPPING BINGE Retail as quality deals The landlords and developers of RETAIL CONDO SALES NATIONWIDE become scarce these desirable spaces are often ea- 2004 2005 2006 ger to cash out, and buyers—in- Total sales $649,777,700 $655,077,733 $930,331,716 condos vestors or the retailers themselves— Total square foot sales 1,057,086 764,444 1,083,525 BY JUDITH MESSINA are willing to pay a premium. Average price per square foot $615 $857 $859 The intense interest and limited in 2005, Vornado Realty Trust supply are sending prices skyward. MANHATTAN RETAIL CONDO SALES latest 2004 2005 2006 bought 17,000 square feet of Between 2004 and 2006, the total ground-floor retail space in Madi- value of retail condo deals nearly Total sales $270,157,700 $339,372,509 $752,487,308 son Avenue’s Westbury Hotel, tripled, to $752 million, and prices Total square foot sales 230,686 169,958 582,652 objects where Gucci and Cartier have out- climbed 10%, to an average of near- Average price per square foot $1,171 $1,997* $1,291 posts.At more than $6,600 a square ly $1,300 a square foot, according to *Skewed by sale of Westbury Hotel retail condo, which sold for more than $6,600 a square foot. foot, it was the priciest retail deal Real Capital Analytics, a Manhat- Source: Real Capital Analytics of desire ever in New York. But it may yet See RETAIL on Page 20

February 19, 2007 | Crain’s New York Business | 19 REPORT REAL ESTATE

in New York coincides with the de- will sell for about $1,500 a square velopment of dozens of residential foot.That’s 29% higher than the av- Retail condos are hot properties and office towers, creating opportu- erage residential condo in the area nities for landlords and developers to was going for at the end of 2006, ac- cash in on retail space at cording to Miller Samuel. Continued from Page 19 turns have fallen to 4% from 6% a ing too few quality deals.” ground level and below.Sell- In a project at Wythe tan real estate and consulting firm. couple of years ago, and good prop- Retail condos, long occupying a ing space can offer tax advan- 43% Street and Broadway in “Investors love retail space,” says erties are getting hard to find. niche market in New York,are gain- tages, and the deals com- NATIONAL Williamsburg, Brooklyn, increase in Bruce Sinder, a principal in Sinvin ing favor in other urban centers. mand higher prices per sales of retail Mr.Taub plans to sell 10,000 Realty, which brokers retail condo Tightening market Once shunned because of their high square foot than the apart- condo space square feet of ground-floor deals. “They often buy at a nominal “it’s gotten more competitive,” per-square-foot prices,they have be- ments or offices above. last year. retail space that he estimates return initially, but if they buy says George Perry, director of in- come popular in the booming retail Leonard Taub, a senior will fetch $550 to $700 a smartly in up-and-coming neigh- vestments for Wien & Malkin Se- economy.Additionally,more lenders managing partner at Kaish & Taub square foot. borhoods, the value goes up.” curities Corp., a Manhattan real es- are ponying up money at relatively Development Group, for example, Peter Von Der Ahe, a director at Brokers complain that capacity is tate investment firm that has low interest rates. Retail condo sales figures that ground-floor retail investment real estate broker Mar- insufficient to meet demand. Prices invested in retail condos. “There’s a were up 43% nationally last year. space in Gramercy Park, where he cus & Millichap, says he gets two have risen so much that initial re- tremendous amount of capital chas- The wave of condo conversions plans to build a residential condo, calls a day about ground-floor space in a rehabbed 80-condo building be- tween West 113th and West 114th streets.The price:$500 a square foot. Investors covet retail condos’ in- come and property appreciation. They can also reap tax advantages if they buy and sell properties of similar value. Kushner Cos.,which just bought 548,000 Square Feet Leased, 75 Deals in 2006 666 Fifth Ave.from Tishman Spey- er for $1.8 billion, has reportedly been besieged with offers for the re- Swig Equities salutes the participating brokers tail space, which is occupied by Brooks Brothers,the NBA store and and welcomes our new and expanding tenants Hickey Freeman. Investors are even buying on spec. Last spring, Madison Capital paid $80 million for a partnership interest in 85,000 square feet of re- ‘He’ll never have a rent increase, and he has a great asset’

900,000 square feet 400,000 square feet 324,000 square feet 350,000 square feet 320,000 square feet 400,000 square feet tail space in a luxury condo building going up on Broadway across from the Time Warner Center. In De- cember, electronics giant Best Buy 80 BROAD STREET 90 BROAD STREET signed a 15-year lease for more than half the space, which is still under 20 Deals–118,000 SF 18 Deals–93,000 SF construction. Solid investment “it’s almost impossible that a re- tail condo investment in a prime area will go bad,” says Steven Kohn, 110 WILLIAM STREET 450 SANSOME 5 HANOVER SQUARE president of real estate investment 13 Deals–175,000 SF (San Francisco) 11 Deals–80,000 SF bank Sonnenblick-Goldman, which 7 Deals–34,000 SF arranged the Westbury Hotel deal and equity and debt financing for Madison Capital. Retailers, eager to lock in their costs and benefit from rising proper- 44 WALL STREET 48 WALL STREET ty values, are also stepping up to the plate.Restaurateurs are often buyers. 3 Deals–28,000 SF 3 Deals–20,000 SF Tequilas Mexican Grill, for ex- ample,must vacate its space on West 14th Street because the building is slated to be torn down. Instead of leasing again, Tequilas’ owner re- Inquiries: Todd E. Korren cently bought the ground floor and 212.508.7276 • [email protected] basement of 358 W. 23rd St., a five- story brownstone, for $1.9 million. “He’ll never have a rent increase, and he has a huge asset,” says Craig Slosberg, a managing director of Newmark Knight Frank Retail who swigequities.com represented the restaurant owner in the deal.

COMMENTS? [email protected]

20 | Crain’s New York Business | February 19, 2007 REPORT REAL ESTATE

DRAWING POWER: At 55 Water St., tenants have snapped up 800,000 square feet of space in the Largest building’s rebirth last two years. helps downtown rebound Renovations, big by city, state and federal incentives that cut rents by as much as $10 per BUILDING BASICS leasing deals at square foot—vacancy rates down- 55 Water St. add town have slowly fallen to 10% BUILT 1972 from a peak of 14% in 2004, ac- SQUARE FEET 3.6 million to area’s recovery cording to CB Richard Ellis. More recently, rents per square foot have ASKING RENT (PSF) 2000: $44 started to bounce back, reaching an 2006: $41 BY KERRY MURTHA average of $41 for Class A space STRENGTH Large floor plates, downtown last year,compared with improved infrastructure and in the aftermath of the terrorist $32 at the end of 2005, city figures sweeping views of lower attacks of Sept. 11, much of down- show. Manhattan and Brooklyn Bridge town became a virtual no-go zone In some of the more notable de- for blue-chip office tenants. Many velopments, last year Goldman WEAKNESS Sheer size of floors people wondered if the area would Sachs made a commitment to build narrows the target market ever fully recover. a 43-story office tower downtown Not Retire- and Moody’s Investor Services PIVOTAL ment Systems signed a lease for 600,000 square the last two years. As of the end PROPERTIES of Alabama. feet of space at the new 7 World of last year, the building was fully Rather than sit- Trade Center. That was the largest occupied.

ting on its lease signed downtown since Sept. “The owner saw the potential of buck ennis hands, the big pension fund contin- 11. this building and was committed to ued to pour money into its New In the last five years, downtown making it a Class A property from floor plates and sweeping views of and 55 Water St. certainly had the York trophy building at 55 Water has attracted 12,000 new residents, the beginning,” says Harry Bridg- lower Manhattan sold them on the ‘Wow’ factor,” says Mr. Coote. St., the city’s largest property when pushing the area’s population to wood,executive vice president of the space. ranked by floor space. Since buying 40,000.Deputy Mayor Daniel Doc- New Water Street Corp., the prop- “We wanted a flagship facility, COMMENTS? [email protected] the building in 1993, the fund has toroff predicts that number will erty manager. He notes that asking spent over $200 million—much of rents for the newest leases in the it in the last five years—doing building are around $40 per square everything from renovating the ‘The building foot, compared with rents that hov- REAL ESTATE ON public plazas to replacing 83 eleva- ered at about $30 three years ago. tor cabs and installing 11 backup has always been power generators. Added perks government agencies and real a bellwether in addition to lavishing major estate industry groups. Big leasing deal sums on upgrading the 25,000- in the process, 55 Water St.’s re- for downtown’ square-foot lobby and opening a Events View listings of local birth has helped prepare the way for gourmet food court, the building’s meetings, seminars and other real a broader rebound in the downtown owners have courted tenants with estate networking events. market. In fact, many people date extra perks. To help win the HIP Back issues the start of the area’s recovery to late lease, for example, the owners Use the 2004, when HIP Health Plan of agreed to allow HIP to put its logo Breaking news E-mail alerts keep archives to find New York signed a lease for 500,000 nearly double to 70,000 in the next on the building. you up-to-date about commercial Crain’s stories square feet at the building in what five years. “It was a big branding opportu- and residential real estate. in any previous became the largest real estate deal in Downtown’s makeover is also nity for HIP that made the offer that edition of the the city that year. drawing nontraditional tenants like much more attractive,” says Brian Company alerts Visitors to the site paper. “The building has always been a advertising agencies and nonprofits, Given, managing director at GVA can sign up for e-mail alerts about bellwether for downtown because of as well as upscale retailers looking to Williams, the brokerage that repre- particular real estate brokerages Subscribe Use its sheer size,” says Mary Ann capitalize on the emerging 24/7 sented HIP in the 20-year deal. or firms. the “Subscribe now” button to get the weekly print Tighe, chief executive of the New market. In one of the biggest deals of Residential real estate The fall York tristate region for CB Richard At 55 Water, which consists of 2006, financial printer Bowne & edition of Crain’s and digital edition of the Crain’s guide offers Ellis and the executive leasing agent a 56-story north tower and a 15- Co. agreed to lease 200,000 square subscriptions to the newspaper, the for 55 Water St. “The successful story annex with a 1-acre rooftop feet of space at the building. the inside scoop on available daily Insider political newsletter and turnaround of the building since garden overlooking the East River, William Coote, treasurer of properties. the daily Pulse health care 9/11 proves that.” tenants have snapped up nearly Bowne, says the building’s inde- Resources Get easy links to newsletter. Since the HIP deal—sweetened 1,000,000 square feet of space in pendent electrical system, large

February 19, 2007 | Crain’s New York Business | 21 CAPTURE T

With nearly 550,000 square feet of space and brand 550,000SF available in a highly trafficked section of Midtown, Avenue is a rare opportunity to drive efficiency and AVAILABLE NOW in your business. HE ENERGY ding rights For leasing information, please contact: MITCHELL L. KONSKER PAUL N. GLICKMAN 636 Eleventh 212.841.7626 212.841.7847 infrastructure [email protected] [email protected] JACK COHEN JOSH GLICK 212.841.5024 212.841.7587 [email protected] [email protected] REPORT

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the 700,000 square feet available for Cutting-edge tower lease in the 52-story property has transforming tawdry been spoken for, at rents—particu- larly for the top floors—approach- One minute area; Times Co. sells ing Park Avenue rates of $100 a to NJ... 30 to NYC! some of its space square foot. The environmentally friendly building has done more than make Superior BY STEVE GARMHAUSEN developer Forest City Ratner Cos. Location richer. It has breathed life into the like many other people, Studley formerly moribund area. Exceptional Chief Executive Mitchell Steir Amenities was profoundly skeptical when The Boundary drawn New York Times Co.’s new head- an early beneficiary of the Outstanding quarters on Eighth Avenue and change will be Parsippany, N.J., Value West 41st Street began to take developer SJP Properties, which shape in 2005. plans to begin work on The building’s front PIVOTAL a 1.1 million-square-foot doors would open on seedy PROPERTIES speculative office tower Eighth Avenue and the this year on a long-vacant Blue Hill Plaza notoriously scruffy Port site, 11 Times Square, just On the Bergen/Rockland border Authority Bus Terminal, and the across West 41st Street. glittering office buildings of Times “The new southern terminus of Ideally situated close to Northern New Jersey, Manhattan Square would be a long, dreary the acceptable business district has – and your employee base – block away. been established,” says Newmark How times—and opinions— Knight Frank Executive Vice Pres- Blue Hill Plaza offers so much more: change. ident Mark Weiss. One of his New York • New First Class Dining clients, Canadian law firm Osler Hot prospects Hoskin & Harcourt, signed a lease • Blue Hill Plaza Fitness Center % “not only is this going to be a mag- in June for 64,000 square feet in the • On Site Child Care Bergen nificent building architecturally and Times building. • Cutting Edge Fiber Optic Technology and Equipment County physically, but it has the good for- “That area on Eighth Avenue GW tune to come on line when demand [north of West 40th Street] can be- New Jersey Bridge Office units from 1,000 sf to potential 150,000 sf has been frenzied,” Mr. Steir says. come comparable to the Avenue of He should know.In June,he bro- the Americas,” Mr. Weiss says. For leasing information, Leasing and management by kered a lease for 160,000 square feet It’s easy to forget the huge risk call Carol McGuire Blue Hill Plaza is a in the Times tower for law firm that Forest City undertook in start- Glorious Sun/Robert Martin 914.592.4800 Covington & Burling.A full 90% of See TIMES CO. on Page 26 www.mack-cali.com Company Property [email protected] Our pride.

JPMorgan Real Estate Funds 2006 $1.15 billion 5 hotels, residential complex, student housing facilities; 5 retail centers; 20 office properties

Broadway Partners CBRE Realty Finance 2006 2006 $4.7 billion - 9.5 million sf $139 million equity 14 office properties Finance REIT IPO

Brickman Douglas Emmett Inc. 2006 New Plan 2006 $321 million 2006 1 million sf $293 million - 2.1 million sf $1.6 billion equity 11 retail centers Office REIT IPO 8 office properties

U-Store-It Trust Trizec Properties Inc. 2006 2006 $363.2 million $8.9 billion - 26 million sf 60 storage facilities Privatization of public Office REIT

Gale Real Estate Services/Rockefeller Group Development Corp 2006 484-acre site for New York Jets headquarters, 830k sf of office space, residential complex & hotel Their glory.

We’re proud to have played a key role in these significant 2006 transactions totaling over $17 billion. Credit goes to our clients who recognized an opportunity when they saw it and seized it. As a national firm dedicated 24/7 to real estate and finance, SMG is pleased to be a leading advisor to these industry leaders.

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Continued from Page 24 ing the project. BUILDING BASICS Forest City didn’t have a single tenant lined up for its share of the CONSTRUCTION Began April 1.6 million-square-foot structure 2005 (the Times Co. owns 900,000 COMPLETION Second-half 2007 square feet) when the firm broke ground on the tower. It is effective- SQUARE FEET 1.6 million ly the largest speculative office (700,000 owned by developer) building to go up in the city in years. ASKING RENT (PSF) No move-in date, no deal 2000 (for Class A space in area): Mid-$30s “no one believed we were going to 2006: Almost $100 do the building on spec, no matter how many times we said that The STRENGTHS High ceilings, state- New York Times Co. was commit- of-the-art systems, sharp design ted to the site and we were commit- WEAKNESS Having the Port ted to building it,” says Mary Ann Authority Bus Terminal as Tighe, chief executive of the New neighbor across Eighth Avenue York tristate region for CB Richard Ellis, the building’s leasing agent. Renowned architect Renzo Pi- ano’s striking renderings of his de- asset manager, took the largest sign for the structure didn’t help chunk—200,000 square feet—in much. August. The firm and its sub- “People want to know when they sidiaries also agreed to build a can move in,”Ms.Tighe says.“If you rooftop conference center with a can’t answer that question with ab- landscaped garden. solute certainty, guess what—you’re Demand proved so strong that not making the deal.” The Times put 155,000 square Last March, people finally got to feet of its space on the market in kick the tires. Potential tenants and the fall. brokers could take a hoist up into the tower, where they were able to Start of a trend admire the large floor plates and forest city had the good fortune sweeping views. The building was to get to market at a time when ten- almost totally leased by August. ants looking for large blocks of space The space turned out to be irre- had few options in midtown. sistible to law firms. Seyfarth Shaw Manhattan’s office vacancy rate NEW YORK UNIVERSITY took 97,000 square feet in June, and hit a five-year low of 7% in the third Covington & Burling and Osler quarter, according to Cushman & Hoskin signed on the same month. Wakefield; in midtown, the rate for Real Estate Institute “For attorneys,who spend a con- the period was 6.5%. siderable amount of their day in the “I was probably more surprised office, the aesthetics, comfort and by the rents they were getting than amenities of the workplace are very by the fact that they leased the important,” Mr. Steir says. “Let’s space,” says Frank Doyle, a manag- face it—a lot of the buildings in ing director with Jones Lang Defining excellence in the industry since 1966. New York have gotten a little tired.” LaSalle. As leasing momentum built, Rents at SJP Properties’building space that had started in the range of are also likely to end up in thin-air $80 a square foot began going for territory, Mr. Doyle says. more than $100. Legg Mason, a Baltimore-based COMMENTS? [email protected] NYU’s Real Estate Institute (REI) has been a seminal force for 40 years in providing the industry with well- educated professionals. Within one of the world’s most dynamic real estate markets, our programs are taught by a faculty of leading experts. The curriculum is designed to keep you abreast of today’s industry developments, providing you with the advanced technical and analytical skills needed to address the demands of your professional community.

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26 | Crain’s New York Business | February 19, 2007 REPORT BUSINESS TriBeCa revamp pays off BREAKFAST FORUM Please join us to hear New York City Schools’ Chancellor Joel Klein Vacancy rate falls CROWN JEWEL: Rents discuss the mayor’s plan to at 1 Hudson Square as Hudson Square, have reached $45 per overhaul the school system, square foot, one of the giving principals more power and a former factory area, highest figures in the draws upscale tenants neighborhood. stiffening requirements for tenure as well as to equalize funding for individual schools. He will be BY STAN LUXENBERG Joel Klein Crain’s Schools’ Chancellor, questioned by editor Greg New York City most people simply assume that David and another journalist. historic, centuries-old religious in- stitutions don’t gamble. In the case of Trinity Church, one of Manhat- Date: March 1, 2007 tan’s largest landowners since colo- Place: nial times, those assumptions are Sheraton New York wrong. 811 Seventh Avenue PIVOTAL More than a Time: 8:00-8:30 a.m. Networking Breakfast PROPERTIES decade ago, the 8:30-9:30 a.m. Program church made a Cost to attend: $60 for individual ticket(s) if giant wager in- pre-registered by February 22 (American Express, deed, when it began to transform its Visa or MasterCard only); $70 thereafter 6 million square feet of factory and $600 for table(s) of ten if pre-registered by warehouse space in Hudson Square February 22; $700 thereafter into an upscale office development. The church called a halt to renew- YOU MUST BE PRE-REGISTERED TO ATTEND THIS EVENT. ing leases for printers and other low- ALL TICKETS ARE NON-REFUNDABLE. rent-paying tenants in its 20-block buck ennis holding on the western edge of To register go to newyorkbusiness.com and click on “Events,” TriBeCa and began massive renova- vertising, architecture and media. ing 4 Hudson Square, an entire or fax your business card and credit card information to “Klein tions designed to attract office ten- “The Hudson Square buildings block between Hudson and Varick. Breakfast” at 212-210-0499. For more information, call the ants, especially fast-growing dot- have an open, lofty feel that many The parcel currently has four unren- Events Hotline at 212-210-0739. coms. employees find interesting and en- ovated buildings. joyable,” says Andrew Peretz, an ex- “With the neighborhood thriv- SPONSORED BY: 9 renovated buildings ecutive director at Cushman & ing, there is good potential for an after the implosion of the Inter- Wakefield Inc. ambitious development,” says Mr. net bubble in 2000, the church saw Recent new tenants for Trinity Peretz. its prospects worsen. Now its bet is properties include Workman Pub- finally paying off.Fleeing nosebleed lishing, a book publisher, which took COMMENTS? [email protected] rents in midtown,tenants in the last three years have been queuing up for space in Trinity’s nine renovated BUILDING BASICS buildings in Hudson Square. The vacancy rate stands at 15%, BUILT 1930 We have a passion for down from 30% at its high point in SQUARE FEET 1.0 million 2002. Jason Pizer, director of com- mercial real estate leasing for Trini- ASKING RENT (PSF) 2000: $35 tax services. ty Real Estate,expects that this year, 2003: $25 the rate will dip into single-digit 2006: $45 levels. STRENGTHS Lots of natural light, It may be hard to imagine, but there is a select group of Meanwhile, rents have been rac- located near the 1 and 9 subway ing in the opposite direction. Ask- lines individuals in this world who have a passion for taxes. ing rents in most Hudson Square Yes, that’s right, taxes. The tax professionals of Grant Thornton buildings range from $30 to $40 per WEAKNESS Fronts Canal Street, a busy thoroughfare that draws are just such a group. Our passion for understanding the square foot. But even at that price— complexities of federal, state, local and international tax issues, more than four times what printers heavy truck traffic paid just a decade ago—the space our partner involvement and our extensive public and still ranks as an attractive alternative private company tax experience, have made us one of the to midtown. 57,000 square feet at 225 Varick St., largest accounting organizations in the world, through our “The rents in the area are now and The Solomon R. Guggenheim member firms in 112 countries. All of which is more half of what tenants pay in midtown Foundation, which took 39,000 important, in today’s global marketplace, than ever and comparable to what we see in square feet at 345 Hudson St. the financial district,” says Marc before. Give Jack Katz, New York Metro Managing Shapses, a senior managing director Recent addition: Sears Partner, a call at 212.542.9827 or contact him at of tenant brokerage Studley. trinity’s crown jewel is 1 Hud- [email protected]. Find out To pull off that renaissance,Trin- son Square,at 75 Varick.That build- what it’s like to work with people who ity spent heavily. The church not ing boasts more than 1 million love what they do! only decided to forgo years of rent square feet of space and large, payments as it cleared out space, but 73,000-square-foot floor plates. it also had to pour major sums into There, a multiyear, multimillion- everything from new lobbies, win- dollar renovation has transformed dows and wiring to major facade an aged factory building into a Class renovations.To date,the tab for ren- A structure.Rents have reached $45 ovations on the 70- and 80-year-old per square foot, one of the highest structures has totaled $100 million. figures in the entire neighborhood. The buildings’ slightly out-of- The latest additions to the tenants’ the-way location and low profiles— roll include Sears, which leased most are about 15 stories—make 40,000 square feet to house its ap- them unsuitable for conservative parel design team. corporate law firms. But those same Trinity is now weighing its first factors have been a big hit with cre- construction of new office space. ative firms, including those in ad- The church is considering develop-

February 19, 2007 | Crain’s New York Business | 27 REPORT

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530 guest rooms and suites, 20,000 square feet of luxuriously fitted meeting space, a dedicated banquet staff and fine cuisine prepared at your request SKY-HIGH: In 2000, rents at 667 Madison Ave. surpassed $100 49 West 32nd Street, New York, NY 10001 Tel (212) 277-2659 • www.radisson.com/martinique per square foot. buck ennis High rents add to East Side offices’ cachet THERE’S A NEW KID IN TOWN… came one of the first buildings in the IBA, the country’s leading engineering and consulting firm that Fortunate tenants city where rents pierced the magical specializes in the design, inspection, and repair of exterior of 667 Madison pass level of $100 per square foot—near- envelope construction has opened a New York office. muster with owner ly twice the average for Class A Whether it’s new construction or the investigation and space. In the process, 667 helped to repair of existing buildings, we have the experience and Leonard Stern establish the Plaza district as the capabilities to identify and eliminate potential failures and city’s most desirable, and priciest, existing problems in exterior wall cladding, glazing, roofing, office area—transcending longtime and waterproofing systems. BY J. ALEX TARQUINIO leader Park Avenue.

Call us any time for QUALITY consultation, inspection and when pet-food king-cum-real Extending its reach repair every time. estate developer Leonard Stern “the plaza district can’t really opened his new office building on go farther north than 667 Madison the corner of Madison Avenue and [because of the historic district to East 61st Street in 1986, there was the north], but it’s expanding in nothing else quite like it around. every other direction as more peo- From the outset, the structure ple try to imitate its success,” says had more in common with Robert Emden, a principal the Upper East Side’s at boutique brokerage IBA CONSULTING AND ENGINEERING, PLLC PIVOTAL toniest residential co-ops PBS Realty Advisors. 299 BROADWAY, SUITE 1605 | NEW YORK, NY 10007 PROPERTIES P: 212.232.0224 | F: 212.232.0288 than with any mere office Buildings in the dis- building. Mr. Stern’s state- trict’s original footprint INNOVATIVE WWW.IBACONSULTANTS.COM BUILDING AND ly edifice boasts 12-foot ceilings, now command rents of as much as ARCHITECTURE BOCA RATON | MIAMI | TAMPA BAY | PENSACOLA marble-clad bathrooms and an ad- $150 per square foot. At the area’s CONSULTANTS LAS VEGAS | SEATTLE | NEW YORK dress that puts it a stone’s throw best-known and largest tower, the from the homes of many of the rich- 1.8 million-square-foot General

FUI07-02 est New Yorkers—including the Motors Building,rents even on low- developer himself. er floors now hit $120 per square foot—as they do in the lower reach- Establishing Plaza district es of 667 Madison and 9 W.57th St. but it was not until 14 years lat- “Even in today’s market, the er that 667 Madison made its real highest rents are still within the dis- mark on the market. In 2000, it be- trict’s original boundaries,” says

28 | Crain’s New York Business | February 19, 2007 REPORT

Mr. Emden. He notes that build- Tisches. Their family firm, Loews Guggenheim family. ings a bit farther afield—as far Corp., has been based at 667 since Then there is David H. Koch, south as the lower 50s or as far east the building opened in 1986. It’s New York City’s wealthiest resi- as Third Avenue—command top also home to Gruss & Co.,a private- dent. Together with his brother rents closer to $100. ly held merchant bank that repre- Charles, he co-owns Koch Indus- At this point, many of the build- sents the financial interests of the tries, a privately held energy com- ings within a few blocks of the Plaza Martin D. Gruss family, and hedge pany based in Wichita, Kansas. Hotel actively trade on their prici- funds such as Sciens Hedge Fund The company uses 667 as its New ness and the exclusivity it breeds. York base. Nowhere is that more the case than Space doesn’t become available at 667 Madison, which some bro- BUILDING BASICS too often at 667. The first tenant kers refer to as the “country club” is still around. The Georgetown building, a place where some of the BUILT 1986 Group, a privately held real estate city’s best-known names are based. SQUARE FEET 250,000 development and financial services Because Mr. Stern’s own office is company, signed the very first lease in the building—and many of the ASKING RENTS (PSF) in 1986. Marshall Rose, the chair- other tenants have been his friends 2000: $80 to $100 man of Georgetown’s board, has for decades—prospective tenants 2006: $120 to $150 known Mr. Stern for decades. have to pass muster with him per- STRENGTHS Location, high sonally. ceilings, the neighbors Walking to work “We are very careful who we let as mr. stern points out, many of into the building,” says Mr. Stern, WEAKNESS Can any place be his tenants live nearby in the Upper who parlayed his family’s Hartz worth this much money? East Side. In fact, the Upper East Mountain pet food business into Side historic district begins on the developing New Jersey office space, north side of East 61st Street.Many and who lent his name to New York Management, where John P. Rigas tenants like the idea of being able to University’s business school. “We is the chairman. walk to their office. don’t let any trading operations into One of the private equity firms in Small hedge funds and private the building, because traders don’t the building is Snow Phipps & equity firms also gravitate toward behave well.” Guggenheim, which is named for the building because of its relative- three illustrious families. ly small floor plates, says Mort Discerning eye Ian Snow, the firm’s chief execu- Schrader, a principal at PBS Realty. he also notes that he would bar tive, is former Treasury Secretary “If you come off the elevator, you any new tenants who aren’t planning John Snow’s son. Another partner, don’t need a separate entrance to on putting money into renovating Ogden Mills Phipps, belongs to the your space,” Mr. Schrader said. their space. And by the way,he real- Phipps family, which founded the “That’s something that a hedge ly does like to look over the designs Bessemer Trust Co., a prominent fund that wants 10,000 square feet for the renovations as well. private bank. Rounding out the couldn’t get at the GM Building.” Those who have passed muster nameplate is Guggenheim Part- include Mr. Stern’s friends the ners, the investment arm of the COMMENTS? [email protected]

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Offices in New York and throughout New Jersey www.jhcohn.com 1-877-704-3500 REPORT REAL ESTATE CoStar’s Top Manhattan Office Leasing Deals Biggest transactions in 2006, ranked by square feet

Address Square feet Tenant Tenant representative Landlord Landlord representative Submarket

1 7 World Trade Center 589,978 Moody’s Investors Service Cushman & Wakefield Inc. Silverstein Properties Inc. CBRE World Trade Center 2 599 Lexington Ave.1 561,137 Shearman & Sterling Cushman & Wakefield Inc. Boston Properties Inc. CBRE Plaza District 3 1 Bryant Park 522,000 Bank of America Jones Lang LaSalle Americas Inc. 1 Bryant Park LLC The Durst Organization Times Square 4 150 William St.1 426,234 New York City Administration The Staubach Co. Braun Management Inc. Braun Management Inc. Insurance District for Children’s Services 5 55 Water St. 424,087 New York City CBRE Retirement Systems of Alabama CBRE Financial District Department of Transportation 6 1095 Sixth Ave. 411,255 Metropolitan Life Insurance Co. Jones Lang LaSalle Americas Inc. Equity Office Properties Trust CBRE Penn Plaza/Garment 7 1740 Broadway 360,423 Limited Brands Inc. CBRE Vornado Realty Trust Vornado Office Management Inc. Columbus Circle 8 1221 Sixth Ave.2 314,363 Morgan Stanley Cushman & Wakefield Inc. Rockefeller Group Development Corp. Rockefeller Group Development Corp. Times Square 9 1230 Sixth Ave.1 292,391 Simon & Schuster CBRE Tishman Speyer Tishman Speyer Plaza District 10 345 Park Ave.1 250,613 The Blackstone Group Newmark Knight Frank 345 Park LLP Rudin Management Co. Plaza District 11 32 Old Slip 250,027 American Home Assurance Co. CBRE Paramount Group Inc. Cushman & Wakefield Inc. Financial District 12 345 Park Ave. South 2 245,538 Digitas Cushman & Wakefield Inc. RFR Realty RFR Realty Gramercy Park 13 1095 Sixth Ave. 234,161 Dechert Cushman & Wakefield Inc. Equity Office Properties Trust CBRE Penn Plaza/Garment 14 135 W. 50th St.1 226,374 AllianceBernstein CBRE UBS Realty Investors CBRE and Murray Hill Properties Columbus Circle 15 199 Water St.3 221,314 Aon CBRE Jack Resnick & Sons Inc. Jones Lang LaSalle Americas Inc. Insurance District 16 1 Bryant Park 211,256 Akin Gump Strauss Hauer & Feld Washington Realty Group 1 Bryant Park LLC The Durst Organization Times Square 17 1 World Financial Center 204,911 Willis Group Holdings Studley Brookfield Properties Corp. Brookfield Properties Corp. World Trade Center 18 3 World Financial Center 199,797 Royal Bank of Canada Direct American Express Co. CBRE World Trade Center 19 200 Madison Ave.2 197,629 Phillips-Van Heusen Corp. Cushman & Wakefield Inc. George Comfort & Sons Inc. George Comfort & Sons Inc. Murray Hill and Loeb Partners Realty 20 620 Eighth Ave. 193,249 Legg Mason Inc. CBRE The New York Times Co. CBRE Times Square 21 277 Park Ave.1 168,500 Sumitomo Mitsui Banking Corp. The Staubach Co. Stahl Real Estate Co. Colliers ABR Inc. Plaza District 22 1325 Sixth Ave.2 168,000 ING Financial Holdings Cushman & Wakefield Inc. Paramount Group Inc. Paramount Group Inc. Columbus Circle 22 40 W. 57th St.2 168,000 VF Sportswear/ Cushman & Wakefield Inc. The Lefrak Organization Cushman & Wakefield Inc. Plaza District Nautica Enterprises Inc. 24 1372 Broadway 2 165,182 Ross Stores Inc. Cushman & Wakefield Inc. SL Green Realty Corp. SL Green Realty Corp. Penn Plaza/Garment 25 620 Eighth Ave. 160,000 Covington & Burling Studley Forest City Ratner Cos. CBRE Times Square 26 11 Penn Plaza 2 158,665 Federated Department Stores Inc. CBRE Vornado Realty Trust Vornado Office Management Inc. Penn Plaza/Garment 27 350 Hudson St.1 158,248 Euro RSCG CBRE and Newmark Knight Frank Trinity Church Real Estate Trinity Church Real Estate Hudson Square 28 2 Penn Plaza 2 154,366 Madison Square Garden Cushman & Wakefield Inc. Vornado Realty Trust Vornado Office Management Inc. Penn Plaza/Garment 29 450 W. 33rd St. 148,524 NYC Board of Elections CBRE Chetrit Group Newmark Knight Frank Penn Plaza/Garment 30 237 Park Ave. 148,028 Bear Stearns & Co. L&L Acquisitions Beacon Capital Partners Inc. Monday Properties Grand Central 31 245 Park Ave.2 147,527 Major League Baseball Cushman & Wakefield Inc. Brookfield Properties Corp. Brookfield Properties Corp. Grand Central and NYS Teachers’ Retirement System 32 240 W. 40th St.2 143,800 Donna Karan International Colliers ABR Inc. 240 West 40th LLC In-house Penn Plaza/Garment 33 237 Park Ave. 140,163 Hachette Filipacchi Media U.S. Inc. CBRE Beacon Capital Partners Inc. CBRE Grand Central 34 7 World Trade Center 138,820 ABN Amro Inc. Jones Lang LaSalle Americas Inc. Silverstein Properties Inc. CBRE World Trade Center 35 261 Madison Ave. 136,000 Primedia Newmark Knight Frank Zar Realty Management Corp. Zar Realty Management Corp. Grand Central 36 1185 Sixth Ave. 135,000 National Hockey League CBRE and The Staubach Co. Reckson Associates Realty Corp. Reckson Associates Realty Corp. Times Square 37 520 Madison Ave.3 134,404 Jefferies & Co. Cushman & Wakefield Inc. 520 Madison Venture Tishman Speyer Plaza District 38 1120 Sixth Ave.1 133,090 American Express CBRE 4 Edison Properties Cushman & Wakefield Inc. Times Square 39 200 Park Ave.3 132,387 Barclays Bank CBRE 200 Park LP Tishman Speyer Grand Central 40 125 Park Ave. 125,000 Federal Guaranty Insurance Co. GVA Williams The Shorenstein Co. Shorenstein Properties Grand Central 41 55 E. 52nd St.3 124,392 Evercore Capital Partners CBRE Fisher Brothers Management Co. CBRE Plaza District 42 32 Sixth Ave. 121,356 Clear Channel Communications CBRE Rudin Management Co. Rudin Management Co. TriBeCa 43 100 W. 33rd St.3 115,000 Foote Cone & Belding Direct Argent Ventures Argent Ventures Penn Plaza/Garment 44 1501 Broadway 113,308 NYC Off-Track Betting Corp. Studley Newmark Knight Frank Newmark Knight Frank Times Square 45 1166 Sixth Ave. 112,270 D.E. Shaw & Co. CBRE Edward J. Minskoff Equities Cushman & Wakefield Inc. Times Square 46 335 Madison Ave.1 107,497 Towers Perrin Jones Lang LaSalle Americas Inc. Milstein Properties Newmark Knight Frank Grand Central 47 620 Eighth Ave. 96,909 Seyfarth Shaw CBRE Forest City Ratner Cos. CBRE Times Square 48 666 Fifth Ave.2 96,747 Millennium Partners Inc. Cushman & Wakefield Inc. Kushner Cos. Tishman Speyer Plaza District 49 261 Madison Ave.1 89,468 Primedia Enthusiast Media Newmark Knight Frank 260/261 Madison Equities The Sapir Organization Grand Central 50 524 Broadway 1 88,000 Scholastic Corp. Peter Pattison 520 Broadway Co. Propp Brothers SoHo This list includes leases with terms of more than two years. Deals are for new leases unless otherwise noted. In case of ties, deals are listed alphabetically by tenant name under the same ranking number. In case of co-brokered deals, brokerages are listed alphabetically. 1-Renewal. 2-Renewal and expansion. 3-Expansion. 4-Trammell Crow Co., the tenant representative for the deal, was later acquired by CBRE. CoStar Group Inc., a provider of information services to the U.S. and U.K. commercial real estate industries, offers customers access via the Internet to the most comprehensive verified database of commercial real estate information on 66 U.S. markets and the United Kingdom. For more information, visit www.costar.com or call (877) 7COSTAR.

30 | Crain’s New York Business | February 19, 2007


    
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   REPORT REAL ESTATE CoStar’s Top New York City Property Sales Biggest commercial property sales in 2006, ranked by price

Address/ Sale price Square feet/price per Buyer’s Seller’s property type/submarket (in millions) square foot or unit Sale date Buyer representative Seller representative Stuyvesant Town & Peter Cooper Village $5,400.0 12,064,341 10/17 Tishman Speyer In-house Metropolitan Life CBRE 1 Multifamily $480,769 and BlackRock Inc. Insurance Co. Gramercy Park 1211 Sixth Ave. $1,520.0 1,925,420 8/24 Beacon Capital Partners Inc. n/a Jamestown Group Eastdil Secured 2 Office $789.44 Times Square 5 Times Square $1,280.0 1,101,779 11/20 AVR Realty None involved per principal Boston Properties Inc. Eastdil Secured 3 Office $1,161.76 Times Square 1290 Sixth Ave. $1,246.5 2,000,000 4/26 Hudson Waterfront Associates CBRE Jamestown Group In-house 4 Office $623.25 Plaza District 280 Park Ave. and 290 Park Ave. $1,200.0 1,225,000 6/6 Istithmar In-house Boston Properties Inc. In-house 5 Office $979.59 Plaza District 450 Lexington Ave. $600.0 910,473 8/2 Istithmar and Island Capital CBRE Murray Hill Properties CBRE 6 Office $659.00 Grand Central 1540 Broadway 1 $560.0 713,211 7/11 Equity Office Properties Trust n/a Paramount Group Inc. n/a 7 Office condominium $785.18 Times Square 340 Madison Ave.2 $550.0 738,686 11/9 Broadway Partners n/a Macklowe Properties n/a 8 Office $744.57 and SITQ Grand Central 350 Park Ave. $541.5 556,069 12/13 Vornado Realty Trust n/a Fosterline Management Corp. CBRE 9 Office $973.80 Plaza District 1330 Sixth Ave. (Pearson Building) $498.0 500,646 12/28 Macklowe Properties n/a Deka First Real Estate n/a 10 Office $994.71 Plaza District 2 Park Ave. $450.0 964,000 9/21 L&L Acquisitions RMB Properties SEB Immobilien-Investment RMB Properties 11 Office $466.80 Murray Hill 434-442 Park Ave. (Drake Hotel) 3 $440.0 346,122 3/31 Macklowe Properties In-house Host Marriott Corp. Eastdil Secured 12 Hotel $888,889 Plaza District 522 Fifth Ave. $420.0 580,067 6/1 Broadway Partners In-house Stellar Management Co. Eastdil Secured 13 Office $724.05 and Rockpoint Group Times Square 575 Lexington Ave. $416.0 575,000 8/25 Silverstein Properties Inc. and In-house Koeppel Cos. CBRE 14 Office $723.48 California State Teachers’ Plaza District Retirement System 1601-1611 Broadway (Crowne Plaza Hotel) $362.0 824,996 11/16 The City Investment Fund None involved KG Land None involved 15 Hotel $470,130 per principal per principal Times Square 810 Eighth Ave. (The Gershwin) $342.0 551,377 1/10 Archstone-Smith In-house Resnick Eighth Avenue Eastdil Secured 16 Multifamily $621,818 Associates Times Square 135 W. 50th St. $332.5 800,733 6/29 UBA Global Asset In-house Murray Hill Properties In-house 17 Office $415.24 Columbus Circle 200 E. 62nd St. and 165 E. 66th St. $327.0 519,599 6/28 BlackRock Realty Advisors Inc. In-house Coventry Development Corp. CBRE 18 Multifamily $1,224,719 Upper East Side 425 Park Ave.4 $320.0 567,330 7/19 L&L Acquisitions CBRE Goelet Corp. n/a 19 Office $564.05 Plaza District 600 Third Ave. $315.0 493,860 10/4 BlackRock Inc. n/a L&L Acquisitions n/a 20 Office $637.83 Grand Central 11 Times Square 5 $306.0 681,352 7/5 SJP Properties n/a Milstein Properties CBRE 21 Development site $449.04 and Prudential Real Estate Times Square Investors 1466 Broadway $300.0 298,695 6/4 Istithmar Eastdil Secured Sitt Asset Management Eastdil Secured 22 Office $1,004.37 Penn Plaza/Garment 102 North End Ave. (Embassy Suites Battery Park) $295.0 628,200 12/12 Goldman Sachs In-house Forest City Ratner Cos. In-house 23 Hotel $637,149 World Trade Center 201 Park Ave. South (W Hotel Union Square) $285.0 200,000 10/4 Istithmar n/a MEPT Union Square Realty n/a 24 Hotel $1,055,555 Gramercy Park 520 E. 21st St.6 $266.4 3,049,484 1/12 520 Realty NY None involved per principal BNT 520 n/a 25 Multifamily $79,129 Brooklyn, Bronx This list includes deals in the five boroughs of New York City. Some sales price figures have been rounded. n/a Not available. 1-Includes portions of the first and second floors and the entire eighth through 44th floors. 2-Development rights from adjacent lots (3 E. 43rd, 14 E. 44th, 12 E. 44th, 6 E. 44th and 77 E. 42nd) were also included in this transaction. 3-Part of a portfolio sale totaling $586 million. Buyer also acquired Fort Lauderdale Marina Marriott. 4-Ground lease. 5-Square footage represents buildable square feet. 6-Portfolio also includes Brook- lyn addresses 538 and 543 E. 21st; 330 E. 19th; 414 E. 34th; 458 E. 51st; 126-138 E. 53rd; 386 and 945 E. 94th; 446 and 474 E. 98th; 159 E. 96th; 40, 64, and 93 Linden St.; 832 Linden Blvd.; 988 Montgomery St.; 9407 and 9507 Kings Highway; 915 Washington Ave.; 470, 1021, 1204, and 1280 Ocean Ave.; 97 Euclid; 2102 Beverley; 1834 Caton Ave.; 1038, 1042, 1048, and 1060 Union; 3613 Avenue D; 1023 Carroll; 1601 Bedford Ave.; 50 Lincoln Ave.; 552 Flatbush; 10 Midwood; 3622 Church Ave.; 1068 Rutland; 902 Clarkson; 1280 Dean; 1820 and 2902 Cortelyou; 1296 Pacific; 12 Crown; 706 Lefferts Ave.; 92, 94, 166, 178, and 416 Rockaway Ave.; and Bronx addresses 1400 Jesup Ave.; 1370 Edward L. Grant Highway; and 1245 and 1255 Stratford. CoStar Group Inc., a provider of information services to the U.S. and U.K. commercial real estate industries, offers customers access via the Internet to the most comprehensive verified database of commercial real estate information on 66 U.S. markets and the United Kingdom. For more information, visit www.costar.com or call (877) 7COSTAR.

32 | Crain’s New York Business | February 19, 2007 GE Real Estate

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© 2006 General Electric Company REPORT

Developers of Custom Solutions, Built to Meet Your Needs Real Estate Deals Two nonprofits are moving up to midtown site

at its old location, and its new office Family Center, Dieu will be consolidated on a single Donné head to West floor. Another plus was the build- ing’s proximity to the transportation 36th; SoHo condo to hubs at Port Authority Bus Termi- nal and Pennsylvania Station, Ms. house furniture store Lyon adds. Among other tenants at 315 W. t a time when many 36th St.is Teach for America,whose nonprofits are fleeing headquarters are in the building. the high prices of mid- —julie satow Dedicated accountants and consultants town for more reason- providing personalized accounting, able rents in lower Furniture maker auditing, and tax services to the AManhattan, two others are making real estate industry. the reverse trip.The Family Center, opening SoHo store which provides counseling to chil- dren whose parents have died of se- a furniture maker that has 12 rious illnesses, and Dieu Donné Pa- stores outside New York City and 622 Third Avenue 88 Froehlich Farm Boulevard For more information, contact us today at: permill, a workspace for artists, are sells products through ABC Carpet New York, NY 10017 Woodbury, NY 11797 212 503 8846 leasing a total of 19,000 square feet & Home, Crate & Barrel, Restora- [email protected] 315 W. 36th St. www.markspaneth.com at , between Eighth tion Hardware and other locations and Ninth avenues. is opening its first store in the city. The Family Center has signed a Mitchell Gold + Bob Williams 10-year deal for 14,000 square feet, signed a 12,000-square-foot lease at or the building’s entire fourth floor. 210 Lafayette St., a condominium de- The asking rent for the space was velopment between Broome and $29 a square foot. The nonprofit is Spring streets. relocating from 11,000 square feet The 10-year lease is for 8,000 square feet on the ground floor and 4,000 square feet in the basement. The asking rent was $125 for the ground floor and $30 a square foot Massey Knakal Realty Services for the basement. would like to thank our clients and friends The store provides “highly visi- ble frontage on two of SoHo’s most for making 2006 another record year. popular walkways,” says David Tri- carico,a retail broker at Cushman & Wakefield, who represented land- Number of Sale Transactions Closed – 413 lord Cape Advisors. The store also provides the tenant “with ample Number of Buildings Sold – 529 space to showcase their designs, as well as a built-in client base in the Aggregate Sale Prices – $2,100,000,000 40-plus luxury residential units di- rectly above them.” Robert K. Fut- Number of Apartments Sold terman & Associates represented (In Multi-family Buildings) – 5,258 315 W. 36TH ST. is the new location for a the tenant. counseling service and an artists’ workspace. —julie satow Square Feet of Buildings Sold – 7,300,000 Buildable Square Footage of at 66 Reade St., which is being con- Growing U.K. firm 2,700,000 verted into a residential building. takes NYC space Development Sites Sold – Dieu Donné Papermill has signed a 15-year lease for 7,300 a british corporate services com- square feet on the mezzanine and pany is growing its presence in the ground floor and in the basement. United States,hiring more than 600 The asking rent for the space,which employees and expanding its head- boasts 24-foot ceilings, was $45 a quarters. HRG North America, a square foot. Dieu Donné Papermill subsidiary of Hogg Robinson is relocating from a 5,000-square- Group, has leased an additional Brooklyn-Staten Island Manhattan-Bronx-Westchester Queens-Nassau County foot space at 443 Broome St. 11,000 square feet for a total of 205 Montague Street 275 Madison Avenue, 3rd Floor 118-35 Queens Boulevard 16 E. 34th St. Brooklyn, NY 11201 New York, NY 10016 Forest Hills, NY 11375 “Dieu Donné Papermill couldn’t 28,000 square feet at , 718.238.8999 212.696.2500 718.275.3400 find the kind of space they were between Madison and Fifth av- Fax: 718.238.6091 Fax: 212.696.0333 Fax: 718.275.5478 looking for—high ceilings and on enues.The asking rent in the build- www.masseyknakal.com the ground floor—in the Wall ing is $40 a square foot. Street area,” says Carri Lyon, a bro- “We are experiencing tremen- A Tradition Of Obtaining The Highest Prices For Sellers* ker at Cushman & Wakefield Inc., dous growth and may need to fur- who represented both Dieu Donné ther expand our headquarters in the *Miller Cicero’s 2005 New York City Building Sales Study determined that Massey Knakal Papermill and the Family Center in future,” says Richard Butterworth, their leases. an executive vice president at HRG achieved prices that were, on average, 31.5% higher than the rest of the market. For its part, the Family Center North America. The company will had been spread across several floors move into its new office space by the

34 | Crain’s New York Business | February 19, 2007 REPORT REAL ESTATE

end of the first quarter. “But we needed a dry use.” ment that dramatically increases Ellis represented the buyer. The office, located on the entire —elisabeth butler our organization’s equity,” says Alan Office condos are attractive to third floor and most of the 12th Jennings, the regional director of government tenants and nonprofits, floor, will house HRG North the union, in a statement. which don’t have to pay property tax- America’s executive team and also a Union buys into The Civil Service Employees As- es when they buy one.The tax savings call center for travel agents who office condo sociation is the latest organization to can amount to as much as $6 a square book trips for the company’s clients. buy at 125 Maiden Lane,joining the foot per year. “They expanded onto the 12th a labor union has bought an Empire State Development Corp. “With such low vacancy rates and floor and extended their lease on the 8,000-square-foot office condo- Time Equities Inc., which con- rents spiking, it is difficult in this third floor, and both leases will run minium at 125 Maiden Lane.The Civ- verted the building into office con- market for a tenant,” Mr. Rudder for 10 years,” says Jim Frederick, a il Service Employees Association is dos last year,has sold 190,000 square says.“An office condominium gives a broker at Colliers ABR, who repre- relocating from 40 Fulton St. to the feet at the building for more than tenant control over its future and en- 125 MAIDEN LANE will house a union office. sented the tenant. Landlord SL building, one of the few office con- $70 million. ables it to predict costs.” Green Realty Corp. represented it- dos in lower Manhattan.The asking “There is pent-up demand for Time Equities is not selling all self on the transaction. price for space in the building is this product,” says Michael Rudder, of the available space at 125 Maid- 350,000-square-foot building, leas- Other tenants in the building in- $450 a square foot. the director of office leasing and en Lane.The developer will contin- ing its space to commercial tenants. clude Cornell University’s School of “It is a great long-term invest- sales at Time Equities. CB Richard ue to own 160,000 square feet of the —julie satow Industrial and Labor Relations, Sara Lee Corp.and Reader’s Digest. —julie satow Furnishings store adding downtown home furnishings retailer Bar- anzelli Silk Surplus is planning to open its first downtown Manhattan recently closed location at 32 N. Moore St., between fremont is proud to have closed the following loan Hudson and Varick streets. The company, which has long operated a store on the east side of midtown, signed a five-year lease for the 1,000-square-foot TriBeCa shop. Baranzelli also runs stores in Boston and West Palm Beach, Fla. The family-owned chain started in 1961 as an outlet for fabric and furniture trimmings. It has revenue The William Beaver House New York,NY

$247,000,000 Construction Loan

B ORROWER: The Sapir Organization/SDS Investments 32 N. MOORE ST. will have a Baranzelli Silk M EZZANINE F INANCING: Surplus store as a new tenant. GSO Capital PARTICIPATING B ANK: PB Capital of about $3.5 million a year. Owner P ROPERTY T YPE: Luxury Condominiums Edwin W. Bitter II plans to open stores in other cities and hopes to in- crease sales to $5 million by 2009. Buchbinder & Warren Realty Group negotiated the downtown Fremont Investment & Loan provides bridge and construction financing for commercial real estate, starting at deal for Baranzelli. “TriBeCa is right for them because there are lots $20 million. In 2006, Fremont closed $7 billion in financing for quality commercial real estate development, of home furnishings stores in the $1.6 billion of which was originated from the company’s New York office. neighborhood,” says Gabe Whit- man, a Buchbinder broker who worked on the deal.The asking rent was about $90 per square foot. Property owner M. Blaustein & Son Inc. chose Baranzelli over a plethora of food vendors that also ATLANTA CHICAGO DALLAS IRVINE LOS ANGELES NEW YORK PHOENIX SAN FRANCISCO WASHINGTON DC wanted the space. 404/364-3700 312/836-9810 972/720-5460 949/567-2400 310/315-7019 212/703-2680 602/224-7700 415/772-7270 301/280-3440 “We had so many people coming for coffee shops, food uses, even a www.1800fremont.com • FREMONT INVESTMENT & LOAN • Member FDIC • A Fremont General Company (FMT:NYSE) chocolate shop,” explains Elliott Dweck, a Besen Retail broker who represented Blaustein in the deal.

February 19, 2007 | Crain’s New York Business | 35 ACCOUNTING/QUICKBOOKS BUSINESS SERVICES PUBLIC & LEGAL NOTICES Certified QuickBooks POS Experts 9/11: We Will Never Forget INCLUDES: State Filing Fees, who understand your business and the importance of cor- NEW YORK Company Seal & Book, Certificate of CORPORATION Incorporation or Organization, Company rect process flows. 47 Years of combined 95 Notice of Formation of THE PUMP Notice of Qualification of Dodona I, LLC. Notice of Formation of GFI Development $16 4 Minutes, Corporate ByLaws, Stock/ experience in accounting, finance and various specialized COMPLETE Membership Certificate, Preliminary CATERING COMPANY LLC. Arts of Org Authority filed with NY Dept. of State on Company, LLC. Arts. of Org. filed with Secy. businesses. Over 400 installations completed. CALL FOR FREE Name Search, Attorney’s Fee filed with Secy of State of NY (SSNY) on of State of NY (SSNY) on 12/28/06. Office INFORMATION ® 12/28/06. Office location: NY County. LLC PACKET www.amerilawyer .com 09/14/04. Office Location: New York location: NY Co. SSNY designated as agent www.QBTrainer.net (212) 962-1000 (516) 338-9100 formed in Delaware (DE) on 10/25/06. Secy. of 212-767-1500 or 212-332-8162 NEW YORK LLC County. SSNY designated as agent of LLC of LLC upon whom process against it may be 95 NEW YORK CITY LONG ISLAND State designated as agent of LLC upon whom $234 Spiegel & Utrera, P.A., P.C. upon whom process against it may be served. SSNY shall mail process to: National [email protected]. COMPLETE 45 John St., Suite 711; NYC © L. Spiegel process against it may be served. Secy. of served. SSNY shall mail process to: State shall mail process to: The LLC, 1370 Registered Agents, Inc., 875 Ave of the BOOKKEEPING SERVICES FINANCIAL PLANNER William A. Scott, CPA, PC, 301 E. Hanover Ave. of the Americas, 20th Fl., NY, NY 10019, Americas, Ste 501, NY, NY 10001, also Avenue, Suite 4, Morristown, NJ 07960. registered agent. Purpose: any lawful activities. a Attn: Alan Brody. DE address of LLC: c/o Purpose: To operate restaurant and Corporation Service Co., 2711 Centerville Rd., catering services. Ste. 400, Wilmington, DE 19808. Cert. of NOTICE OF FORMATION of ACQ Networks Form. filed with DE Secy. of State, 401 Federal LLC. Arts. of Org. filed with Secy. of State of Notice of Formation of Patria Pictures, LLC. St., Dover, DE 19901. Purpose: any lawful NY (SSNY) on 10/02/06. Office location: NY Arts. of Org. filed with NY Dept. of State on activity. Co. SSNY designated as agent of LLC upon 12/4/06. Office location: NY County. Principal whom process against it may be served. business address: 320 W. 17th St., #1RW, NY, Notice of Qualification of 399 Knollwood SSNY shall mail process to: c/o Austin Vance, NY 10011. Secy. of State designated as agent Lessee LLC. Authority filed with Secy. of ACQ Networks LLC, 316 West 19th St. #2E, of LLC upon whom process against it may be State of NY (SSNY) on 1/12/07. Office location: NY, NY, 10011. Purpose: any lawful activities. LEGAL SERVICES served. Secy. of State shall mail process to: NY County. LLC formed in Delaware (DE) on Corporation Service Co., 80 State St., Albany, 1/10/07. SSNY designated as agent of LLC NY 12207. Purpose: any lawful activity. upon whom process against it may be Notice of Formation of Barbosa Enterprises JULES MARTIN HAAS, ESQ. served. SSNY shall mail process to: c/o LLC. Arts. of Org. filed with Sec. of State Providing Legal Services to Businesses and Individuals for Over 20 Years National Registered Agents, Inc., 875 Ave of of NY (SSNY) on 9/26/06. Office Loc. in NY Notice of Formation of 345 7th Avenue, the Americas, Ste 501, NY, NY 10001, also County. SSNY designated as agent of LLC throughout the New York Metro Area. LLC. Arts. of Org. filed with Secy. of State Wills • Planning • Probate • Real Estate • Co-Ops • Condos • Leases registered agent. Address required to be upon whom process against it may be served. of NY (SSNY) on 12/21/2006. Office SSNY shall mail a copy of process to c/o Business Formation/ Transactions maintained in DE: 160 Greentree Dr., Ste 101, location: New York County. SSNY designated Dover, DE 19904. Arts. of Org. filed with DE Michael Barbosa, 370 St. Nicholas Ave. 845 Third Avenue, Suite1400, New York, NY 10022 as agent of LLC upon whom process Suite 3C, New York, NY 10027. Purpose: Tel: (212) 355-2575 Fax: (212) 751-5911 E-mail: [email protected] Secy. Of State, 401 Federal St., Ste 4., Dover, against it may be served. SSNY shall mail DE 19901 . Purpose: any lawful activities. Any Lawful Purpose. process to: The Company, c/o Vince Terranova, RELOCATION SERVICES Bernstein Real Estate, 855 Avenue of the Notice of Formation of Adam Shopkorn Art Notice of Formation of NJS 460 LLC. Arts. Americas, New York, NY 10001. Purpose: Advisory Group LLC. Arts. of Org. filed with any lawful activities. of Org. filed with NY Dept. of State on NY Dept. of State on 2/1/07. Office location: 1/16/07. Office location: NY County. Secy. NY County. Secy. of State designated as agent of State designated as agent of LLC upon Notice of Formation of MCCANN, GOODWIN of LLC upon whom process against it may be whom process against it may be served. LLC. Arts. of Org. filed with Secy. of State served. Secy. of State shall mail process to: Secy. of State shall mail process to: c/o of N.Y. (SSNY) on 11/29/06. Office location: Adam Shopkorn, 1 Astor Place, Apt. 4V, NY, Wharton Realty, 20 E. 46th St., Ste. 1200, NY County. SSNY designated as agent of NY 10003. Purpose: any lawful activity. NY, NY 10017, principal business address LLC upon whom process against it may be of the LLC. Purpose: any lawful activity. served. SSNY shall mail process to: The Notice of Qualification of Gemini 449 West LLC, 630 Fifth Avenue, Ste. 1401, NY, NY 36th Street 9, LLC. Authority filed with Secy. 10111, Attn: Joseph H. McCann, III. of State of NY (SSNY) on 11/28/06. Office NOTICE OF FORMATION OF LIMITED Purpose: any lawful activity. location: NY County. LLC formed in Delaware LIABILITY COMPANY. NAME: MAN AND (DE) on 11/17/06. SSNY designated as agent WIFE LLC. Articles of Organization were filed Notice of Formation of 300 West 22 Realty of LLC upon whom process against it may with the Secretary of State of New York LLC. Arts. of Org. filed with Secy. of State be served. SSNY shall mail process to: c/o (SSNY) on 10/17/06. Office location: New of NY (SSNY) on 11/07/06. Office location: Corporation Service Company, 80 State St., York County. SSNY has been designated as EXECUTIVE RECRUITER NY Co. SSNY designated as agent of LLC Albany, NY 12207-2543, also registered agent of the LLC upon whom process upon whom process against it may be served. agent. Address required to be maintained in against it may be served. SSNY shall mail a SSNY shall mail process to: The LLC, 433 DE: c/o Corporation Service Company, 2711 copy of process to the LLC, 24 Fifth Avenue, POSITION AVAILABLE West 14th St., Ste 429 3R, NY, NY 10014. Centerville Rd, Ste 400, Wilmington, DE Apartment 1115, New York, New York 10011. Purpose: any lawful activities. 19808. Arts. of Org. filed with DE Secy. Of Purpose: For any lawful purpose. State, 401 Federal St., Ste 4., Dover, DE 19901. VP of External Communications Purpose: any lawful activities. Notice of Formation of Craddock & Company Notice of formation of limited partnership (L.P.) Name: Yorkshire Towers Company Premier real estate finance company seeks VP of External Communications to LLC. Arts. of Org. filed with Secy. of State of Notice of Qualification of Sempra Energy Successor II, L.P. Cert. of LP filed with SSNY NY (SSNY) on 11/16/06. Office location: NY Solutions, LLC. Authority filed with Secy. of develop a public relations strategy for the company, identify and cultivate key on 1-08-2007. Off. Loc: New York County. Co. SSNY designated as agent of LLC upon State of NY (SSNY) on 1/02/07. Office relationships with press, draft and disseminate all transaction press releases, SSNY designated as agent of the LP, upon whom process against it may be served. location: NY County. LLC formed in California whom process against it may be served. develop and pitch story ideas relevant to corporate initiatives, identify and pitch SSNY shall mail process to: c/o Christopher (CA) on 10/31/06. SSNY designated as agent SSNY shall mail a copy of any process to: c/o speaking engagements for senior executives, supervise all press interviews, Craddock, Manager, 235 East 40th St, Apt. 5J, of LLC upon whom process against it may be Lynn Schneider, 60 East 42nd Street, NY, NY NY, NY 10016. Purpose: any lawful activities. served. SSNY shall mail process to: c/o develop and implement an advertising campaign and oversee advertising budget. 10165. The name and address of each general National Registered Agents, Inc., 875 Ave of partner is available from SSNY. Term: until Bachelor’s degree and min. 5 years Public Relations Agency experience with the Americas, Ste 501, NY, NY 10001. NOTICE OF FORMATION OF LIMITED 3-09-2032. Purpose: To manage, improve, Address required to be maintained in CA: 101 financial or real estate clients required. Will consider in-house experience from LIABILITY COMPANY. NAME: 698 TITAN lease and otherwise deal with the property Ash St., San Diego, CA 92101. Arts. of Org. financial services or real estate company. Media contacts mandatory. PROPERTIES LLC. Articles of Organization located at 305 East 86th Street, NY, NY. were filed with the Secretary of State of filed with CA Secy. Of State, 1500 11th St., Please send resume with most recent salary to: [email protected]. New York (SSNY) on 01/18/07. The latest date 3rd Fl, Sacramento, CA 95814 . Purpose: Visit us at www.chartermac.com. No phone calls, please. of dissolution is 12/31/2107. Office location: any lawful activities. DUB SONATA MUSIC L.L.C. Articles of Org. New York County. SSNY has been designated filed NY Sec. of State (SSNY) 12/6/06. Office as agent of the LLC upon whom process 516 E. 6TH STREET, LLC Articles of Org. in NY Co. SSNY desig. agent of LLC upon against it may be served. SSNY shall mail a filed NY Sec. of State (SSNY) 10/13/2006. whom process may be served. SSNY shall copy of process to the LLC, 626 Tenth Avenue, Office in New York Co. SSNY desig. agent mail copy of process to 2621 Palisade Ave., Coming Up Suite 1A, New York, New York 10026. of LLC upon whom process may be served. #3B, Riverdale, NY 10463, which is also the Purpose: For any lawful purpose. SSNY shall mail copy of process to 270 address of the registered agent, Christopher on the Calendar Lafayette Street, New York, N.Y. 10012. Markisz upon whom process against the LLC Purpose: Any lawful purpose. may be made. Purpose: Any lawful purpose. Notice of Formation of a Limited Liability Latest dissolve date: 12/31/2105. Company (LLC): Name: VELO-LEBO, LLC, Notice of Qualification of Strategic Value Credit Articles of Organization filed with the Opportunities Fund, L.P. Authority filed with www.tuesdayschildren.org February 26th Secretary of State of New York (SSNY) NOTICE OF SOLICITATION – NEW YORK CITY Secy. of State of N.Y. (SSNY) on 11/18/03. OFF-TRACK BETTING CORP. is requesting President Business of Law on 01/04/2007, Office location: New York Office location: NY County. LP formed in proposals from firms to provide Mobile County, SNNY has been designated as Wagering and Video Solutions for Pari-Mutuel Tuesday’s Children, a not-for-profit Delaware (DE) on 10/9/03. SSNY designated agent of the LLC upon whom process as agent of LP upon whom process against it Operations. Attendance at a pre-proposal family service organization founded against it may be served. SSNY shall mail a conference which will be held on February 27, may be served. SSNY shall mail process to: 2007 is mandatory. Proposals are due March 22, by family and friends of September March 5th copy of process to: C/O VELO-LEBO, LLC, The LP, 375 Park Avenue, 29th Fl., NY, NY 2007. For a copy of the proposal documents, 11th victims, is dedicated to providing 253 West 72 Street Apt 907, New York, NY 10152. DE address of LP: 1209 Orange St., please contact Sam Amorese, Deputy General 10023. Purpose: Any Lawful Purpose. Counsel/ACCO, NYCOTBC, at (212) 221-5200, a wide range of programs to the Education Wilmington, DE. Name/address of each genl. ext. 5989, or [email protected]. children, families, and first responders. Latest date upon which LLC is to dissolve: ptr. available from SSNY. Cert. of LP filed with No specific date. TC seeks an exceptional President to DE Secy. of State, Townsend Bldg., Dover, DE lead the organization to its next level 19901. Purpose: any lawful activity. NOTICE OF FORMATION OF TORU LLC of excellence. The President will: March 12th Notice of Qualification of GS Special Art of org. filed with Sec. of State of NY conceptualize, shape, and execute the Opportunities 2006 Advisors, L.L.C. Authority Notice of Qualification of WKP-Spier, LLC. (SSNY) on 12/22/06. Office loc.: NY County. Small Business filed with Secy. of State of N.Y. (SSNY) on Authority filed with Secy. of State of NY SSNY designated as agent of LLC upon whom strategic vision for the future; serve 1/4/07. Office location: NY County. LLC (SSNY) on 8/21/06. Office Location: NY process against it may be served. SSNY shall as the lead fund raiser and formed in Delaware (DE) on 10/13/06. SSNY County. LLC formed in Delaware (DE) on mail process to: 201 E. 79th St. 18-h, NY, NY spokesperson; be responsible for the designated as agent of LLC upon whom 5/11/06. SSNY designated as agent of LLC 10021. Purpose: Any lawful activity. ongoing development, refinement, and March 19th process against it may be served. SSNY shall upon whom process against it may be implementation of strategic plans; Real Estate mail process to principal business location: served. SSNY shall mail process to: Attn: work collaboratively with volunteers c/o Goldman Sachs Special Opportunities William McCartin, Esq. Sankel, Skurman & Notice of Formation of Cape Equities, LLC; and staff to grow and diversify Fund 2006, L.P., 32 Old Slip, NY, NY 10005. McCartin, 750 Third Ave, NY, NY 10017. Arts of Org., filed with NY Sec. of State (“SSNY”) 12/14/2006. Office in NY County; philanthropic revenue; lead a staff of 20. DE address of LLC: Corporation Service Address required to be maintained in DE: March 26th Company, 2711 Centerville Road, Ste. 400, 160 Greentree Dr., Ste. 100, Dover, DE 11904. SSNY designated agent for service of process Applications to Gail L. Freeman, Health Care Wilmington, DE 19808. Cert. of Form. filed Arts. Of Org. filed with DE Secy. of State, 401 with copy mailed to c/o Cape Advisors, Inc., President of Freeman Philanthropic with DE Secy. of State, 401 Federal St., Ste. 4, Federal St., Ste. 4, Dover, DE 19901. 150 Lafayette Street, 9th Floor, New York, NY Services, LLC at [email protected] Dover, DE 19901. Purpose: any lawful activity. Purpose: any lawful activity. 10013, All lawful business purposes.

36 | Crain’s New York Business | February 19, 2007 PUBLIC & LEGAL NOTICES REAL ESTATE

Notice of Formation of CCD Modeling, LLC, Notice of Qualification of Paige Opportunity NOTICE OF FORMATION OF LIMITED OFFICE SPACE Art. of Org. filed Sec'y of State (SSNY) Partners, LP, App. for Auth. filed Sec'y of State LIABILITY COMPANY. NAME: CELEBRITY 10/31/06. Office location: NY County. SSNY (SSNY) 10/23/06. Office location: NY County. EVERYTHING,LLC. Articles of Organization designated as agent of LLC upon whom LP org. in DE 10/20/06. SSNY designated as were filed with the Secretary of State of New process against it may be served. SSNY shall agent of LP upon whom process against it may York (SSNY) on 01/04/07. Office location: mail copy of process to c/o Shukat Arrow be served. SSNY shall mail copy of process to New York County. SSNY has been designated EXECUTIVE OFFICE SUITES Hafer Weber & Herbsman, LLP, Attn: Peter S. 630 Third Ave., 6th Fl., NY, NY 10017, Attn: as agent of the LLC upon whom process Shukat, Esq., 111 West 57th St., Ste. 1120, Michele Paige. DE office addr.: CSC, 2711 against it may be served. SSNY shall mail a NY, NY 10019. Purpose: any lawful activities. Centerville Rd., Wilmington, DE 19808. Cert. of copy of process to the LLC, 208 East 51st 212.573.0909 LP on file: SSDE, Townsend Bldg., Dover, DE Street, Suite 255, New York, New York NOTICE OF FORMATION OF LOUD VENTURA 19901. Name/addr. of each gen. ptr. avail. at 10022. Purpose: For any lawful purpose. FurnishedOfficesNYC.com LLC. Articles of Organization filed with the SSNY. Purpose: any lawful activities. Secretary of State of NY (SSNY) on 8/14/06 Notice of Qualification of Fifth Associates, OFFICE SPACE Office location NEW YORK County. SSNY Notice of Formation of 1405 FIFTH AVENUE L.L.C. Authority filed with NY Dept. of State has been designated as agent upon whom APARTMENTS, LLC, a domestic Limited on 1/5/07. Office location: NY County. LLC Advertise on process against it may be served. The Post Liability Company (LLC). Articles of formed in Delaware (DE) on 12/28/06. Secy. MIDTOWN COMMERCIAL Office address to which the SSNY shall mail Organization filed with Secretary of State on of State designated as agent of LLC upon www.newyorkbusiness.com REAL ESTATE a copy of any process against the LLC 12/18/06. NY Office location: KINGS County. whom process against it may be served. For All office & loft SPACES served upon her is C/O the LLC 527 West Secretary of State is designated as agent Secy. of State shall mail process to: c/o 143rd Street #53. New York, NY. Purpose of Call John Gallagher 500-50,000 SF upon whom process against the LLC may Brian Kempner, Kushner Companies, 18 UNDER MARKET SUBLETS-NO FEE! LLC: to engage in any lawful act or activity. Columbia Tpke., Florham Park, NJ 07932, be served. Secretary of State shall mail a Search our listings @ www.midcomre.com Street address of Principal Business location copy of any process against the LLC served principal business address of the LLC. DE @ 212-210-0189 is: 527 West 143rd Street #53. New York, upon him/her to: THE LLC, 91 CONKLIN address of LLC: c/o Corporation Service Co., Call Paul 212 947-5500 x 100 NY 10031. AVE., BROOKLYN, NY 11236. Purpose: To 2711 Centerville Rd., Ste. 400, Wilmington, engage in any lawful act or activity. DE 19808. Arts. of Org. filed with DE Secy. PEARLMARK MEDIA LLC Articles of Org. of State, Federal & Loockerman St., Dover, filed NY Sec. of State (SSNY) 12-13-05. DE 19901. Purpose: any lawful activity. LUXURY PROPERTIES Office in New York Co. SSNY desig. agent of Notice of Qualification of Tokum Partners, LP, LLC upon whom process may be served. SSNY App. for Auth. filed Sec'y of State (SSNY) Notice of Formation of Big Blocks Asset shall mail copy of process to 184 Lexington 11/15/06. Office location: NY County. LP org. Management, LLC, a domestic Limited Avenue, Suite 10C, New York, NY 10016. in DE 11/14/06 SSNY designated as agent of SOUTHAMPTON Liability Company. Arts. of Org. filed with Purpose: Any lawful purpose. LP upon whom process against it may be served. SSNY shall mail copy of process to the SSNY on 10/11/06. Office location: New York County. SSNY has been designated as Notice of Formation of 750 Argyle Street 900 Third Ave., Ste. 1102, NY, NY 10022, Attn: Lauren Chung. DE office addr.: CSC, agent upon whom process against the LLC LLC. Arts. of Org. filed with Secy. of State of may be served. SSNY shall mail a copy of NY (SSNY) on 10/19/2006. Office location: 2711 Centerville Rd., Wilmington, DE 19808. Cert. of LP on file: SSDE, Townsend Bldg., process to: the LLC, 14 Wall St.,12th Floor, NY County. SSNY designated as agent of New York, NY 10005. Purpose: Any Lawful LLC upon whom process against it may be Dover, DE 19901. Name/addr. of each gen. ptr. avail. at SSNY. Purpose: any lawful activities. Purpose. Latest date upon which LLC is to served. SSNY shall mail process to: the dissolve: No Specific Date. LLC, 325 W. 11th St, NY, NY 10014. Purpose: any lawful activities. Notice of Qualification of Barrington Land Services, LLC. Authority filed with Secy. of LEGAL NOTICE NOTICE OF FORMATION OF THE FASHION State of N.Y. (SSNY) on 1/9/07. Office location: EXCHANGE, LLC. ART. OF ORG. FILED NY County. LLC formed in New Jersey (NJ) NOTICE OF SALE WITH THE SEC. OF STATE OF NY (SSNY) on 1/3/07. SSNY designated as agent of SUPREME COURT: COUNTY OF BRONX - ON 11/02/06. OFFICE LOCATION: NEW LLC upon whom process against it may be AMERIQUEST MORTGAGE COMPANY, YORK COUNTY. SSNY DESIGNATED AS served. SSNY shall mail process to: 276 Plaintiff, AGAINST JENNIFER SIMPKINS, AGENT OF THE LLC UPON WHOM Fifth Avenue, 6th Fl., NY, NY 10001. DE ET. AL., Defendant(s). Pursuant to a PROCESS AGAINST IT MAY BE SERVED. address of LLC: c/o Alan Rosenbaum, 70 judgment of foreclosure and sale duly dated SSNY SHALL MAIL COPY OF PROCESS TO: Grand Avenue, Ste. 101B, River Edge, NJ 12/7/2006, I, the undersigned Referee will THE LLC, 1407 BROADWAY SUITE 1706, 07661. Cert. of Form. filed with NJ Dept. of sell at public auction at the Bronx County NY, NY 10018. PURPOSE: ANY LAWFUL State, P.O. Box 308, Trenton, NJ 07625. Courthouse, Room B-129, 851 Grand ACTIVITIES. Purpose: any lawful activity. Concourse, Bronx, New York, on 2/28/2007 at 2:00 PM, premises known as 3575 Notice of Qualification of PCV ST OWNER Notice of Qualification of 666 Fifth Associates Paulding Avenue, Bronx, NY 10467. All that LP, Authority filed with Secy. Of State of NY LLC. Authority filed with NY Dept. of State certain plot piece or parcel of land, with the (SSNY) on 11/14/06. Office location: NY on 1/5/07. Office location: NY County. LLC buildings and improvements thereon erected, County. LP formed in Delaware (DE) on formed in Delaware (DE) on 12/26/06. Secy. situate, lying and being in the New York 11/13/06. SSNY designated as agent of LP of State designated as agent of LLC upon City, Borough of Bronx, County of Bronx upon whom process against it may be whom process against it may be served. and State of New York, Section, Block and served. SSNY shall mail process to: c/o Secy. of State shall mail process to: c/o National Registered Agents, Inc., 875 Brian Kempner, Kushner Companies, 18 Lot:-4683-30. Approximate amount of Avenue of the Americas, Ste. 501, NY, NY Columbia Tpke., Florham Park, NJ 07932, judgment $331,975.61 plus interest and 10001, also registered agent. DE address of principal business address of the LLC. DE costs. Premises will be sold subject to LP: 160 Greentree Dr, Ste 101, Dover, DE address of LLC: c/o Corporation Service Co., provisions of filed Judgment Index 19904. Name/address of genl. ptr. available 2711 Centerville Rd., Ste. 400, Wilmington, #22082/04. Lorraine Corsa, Esq., Referee, from SSNY. Cert. of LP filed with DE Secy. DE 19808. Arts. of Org. filed with DE Secy. STEVEN J. BAUM, P.C., Attorney for Plaintiff of State, Federal & Duke of York Sts., of State, Federal & Loockerman St., Dover, P.O. Box 1291, Buffalo, NY 14240-1291 Dover, DE 19901. Purpose: Real estate DE 19901. Purpose: any lawful activity. Dated: 1/23/2007 leasing and development.

Notice of Formation of 240 West Broadway LLC. Arts of Org filed with Secy of State of NY (SSNY) on 08/16/06. Office location: New York County. SSNY designated as agent of LLC, upon whom process against it may be served. SSNY shall mail process to: Peter Moore Associates, Attn: Jonathan Morse, 515 Canal Street, New York, NY 10013. Purpose: Real Estate Investment. Notice of Qualification of Gracox LLC. Authority filed with NY Dept. of State on 2/2/07. Office location: NY County. LLC formed in Delaware (DE) on 12/17/04. Secy. of State designated as agent of LLC upon whom process against it may be served. MIAMI BEACH/FLORIDA Secy. of State shall mail process to: c/o TAG To place your classified Associates Holdings LLC, 75 Rockefeller TRUMP OCEANFRONT CONDOS Plaza, NY, NY 10019. DE address of LLC: OWN YOUR LUXURY CONDO TODAY! Corporation Service Co., 2711 Centerville Rd., ad call John Gallagher TRUMP GRANDE & TRUMP TOWERS Ste. 400, Wilmington, DE 19808. Arts. of Org. Buy directly from the Developer & Save $$ filed with DE Secy. of State, 401 Federal St., Furnished Condo Hotel units from $325k Dover, DE 19901. Purpose: any lawful activity. 1-4 Bedrm Residential Condos from $875k @ 212-210-0189 Ask for details on our FLY-BUY Program Notice of Formation of Off-Court, LLC. Arts. of Call Exclusively Baronoff 305.213.3606 Org. filed with NY Dept. of State on 10/20/06. Office location: NY County. Principal business address: 2 Penn Plaza, Ste. 2430, NY, NY 10121. Secy. of State designated as agent of LLC upon whom process against it may be served. Secy. of State shall mail process to: c/o CT Corporation System, 111 8th Ave., NY, www.newyorkbusiness.com NY 10011, registered agent upon whom process may be served. Purpose: any lawful activity.

February 19, 2007 | Crain’s New York Business | 37 Go to newyorkbusiness-risingstars.com for photos, profiles and for the first time ever candid video interviews of the honorees. BUSINESS “If you want to be successful, you need the beautiful people.” —Joel Rousseau, club promoter Page 40 buck ennis

GOTHAM GIGS King of lights BILL TORTORELLI, 63, jokes that he is “the most famous electrician in the world.” As chief electrician for the Empire State Building, he operates the tower lights that dazzle his native city. WHITE-HOT Mr.Tortorelli and his six-person crew make 200 color changes a year, braving the weather to adjust each of the total 210 1,000-watt floodlights on the 72nd and 81st floors. For the lights above the 86th floor, he just flips switches. All told, he can choose among 485 color combinations. CODE RED Over the years, Mr. Tortorelli has received many thanks, as well as alerts from concerned enthusiasts who noticed that a light was out. He had to turn off an all-red tower one cloudy evening because emergency officials were getting calls from people who thought the building was on fire. TRUE-BLUE Though Mr. Tortorelli, a second- generation Italian-American, is fond of the Columbus Day red, white and green, he prefers the red, white and blue used on President’s Day.“I’m an American first,” he says. UP ALL NIGHT: —adrianne pasquarelli Partners Pascal Menard (left) and Sorin Abraham say EXPERT OPINIONS promoting definitely carries burnout risk. SHOULD I UPGRADE TO WINDOWS VISTA?

vista is a radical neff david improvement over XP.The problem is that the graphics HOT SPOTS card and memory in the Bars, clubs computers and lounges that most people own Get the party started in NYC are inadequate Club promoters are in demand and in charge to operate BY LISA FICKENSCHER Vista. Too 1,000 t’s 1 a.m. on a saturday at the plumm. A group of six young women are perched on many people 2000 will buy Vista, load it on a the top of a stiletto-proof banquette, gyrating to techno music and scanning the low-bucket PC and experience crowded room for anyone who might notice them. frequent crashes, lengthy Sorin Abraham does, briefly. freezes and slow processing. His attention then turns to several other clusters of beautiful women—most of Wait until you’re ready to buy whom probably wouldn’t be there if not for him and his business partner, Pascal “Sugar” a new PC. 1,362 Menard. —andrew schoepfer 2006 President “This is a good night,” Mr. Abraham says.The partners are nightclub promoters. Tier 1 Research They send out thousands of invitations almost daily to lure a See PROMOTERS on Page 40 Source: Zagat Survey New York City Nightlife istockphoto I February 19, 2007 | Crain’s New York Business | 39 BUSINESS LIVES

sents the next chapter,the two men say. Promoters get the party started FACTORY BOY Real estate is their WHILE ANTHONY CRAYOLA, 21, is trying to safety net if the Web ven- Continued from Page 39 that for many years was defined by him to find out about exclusive par- break into the fashion world as a ture doesn’t take off. Mr. few hundred people to their parties iconic venues such as the Palladium, ties.“It’s like being a concierge,”Ni- model, he’s earning a living as Abraham owns three at different venues. Tunnel and Limelight.Today, there tro says. the protégé of veteran club apartment buildings, and This particular night, Plumm is are more clubs than there are A-lis- There’s also good money to be promoter Pascal Menard. Mr. Menard rents out so packed that taking a step in any ters to fill them. made. Mr. Menard says that about Among his duties: four luxury lofts. direction requires the blocking “Promoters have a great deal of half of his $420,000 gross income cultivating a following of Securing a financial skills of a lineman. And it will only influence and power,” says David last year came from promoting.The the young and attractive future is particularly im- get more crammed as dozens of Rabin, who owns Lotus and Dou- top earners can make as much as through his MySpace profile, portant for promoters, people waiting outside in the frigid ble Seven—both in the meatpack- $3,500 a night, though they may Model Life 101, which Mr. who must pay for their cold are allowed in. ing district—and is president of the split their take with a partner and Menard helped him set up. own retirement plan and New York Nightlife Association. pay associates a smaller amount. The hope is that Mr. Crayola health insurance. And Influence and power Messrs. Abraham and few have a spouse or part- will attract as many as 30 inside the West 14th Street spot, Menard employ 20 associ- ner with whom to share Messrs. Abraham and Menard’s There are more ates—most of them aspiring revelers to each party that living expenses. eight hired “associates” are working models, actors and dancers— Mr. Menard hosts. The romantic tempta- hard to keep the place buzzing. clubs than there who in turn invite their friends “I’m helping him to tions keep most promot- These clubgoers—mostly men, to parties. The partners negoti- create a universe,” the ers from settling down.“A whose compensation is free drinks are A-listers ate a fee with the club that is usu- promoter says. good promoter is a really and $150—will do what it takes to ally based on how many people Meanwhile, Mr. Crayola good flirt,” says Mr. juice up the party, including danc- to fill them they bring in and an estimate of walks Mr. Menard’s dogs— Abraham, 39. Nitro adds ing on the furniture and enlisting how much those guests spent on Elvis and Charlie—and that it would “take a their female companions to do the drinks. fetches his Range Rover strong woman, a Hillary same. from the garage. Clinton type” to be in-

Welcome to the strange world of Temptations galore neff david volved with him. club promotion, where people get “There are too many clubs, and but catering to this elite crowd of Mr. Menard is one of paid to party and earn even more for none of them are doing fantastical- mostly young people is exhausting, ple,” he says. the exceptions. He has been mar- bringing along the best-looking ly well.” even dangerous, sometimes. Night Burnout is another downside. ried for four years to Ariel Blue Sky, types. But business is good for promot- crawling as often as four times a Most promoters start to transition 25, a striking blond at least a head “If you want to be successful,you ers,whose lives are part glamour and week, getting to bed at dawn and out of the business as they approach taller than him who is a DJ and ac- need the beautiful people,” says Joel part illusion.They meet lots of new waking up after noon takes a toll. their forties. They look for other tress. They live in a 2,000-square- Rousseau, a promoter who special- people at the chicest spots, and so- Many promoters wind up in drug or ways to leverage their vast social foot Chelsea loft with their two izes in bringing agency models to cialize with the rich and famous. alcohol rehab. network,which in Nitro’s case is ap- dogs. clubs. Mr. Menard, for instance, took “You need self-discipline be- proaching 2,000 entries in his over- “Part of my business is flirting Promoters like Mr. Rousseau Lenny Kravitz thrift-store shop- cause it’s hard not to drink,” says loaded BlackBerry. with girls,” Mr. Menard says mat- have never been more in demand. ping after the rocker admired his Mr. Rousseau, 36. “In the begin- Messrs. Abraham and Menard ter-of-factly. But he’s just as aware Over the past five years, New York vintage wardrobe. ning, I used to drink every night.” are developing a social networking of the effect his wife has on men.“If City’s nightlife industry has grown A promoter who goes by the Mr. Menard, 38, says he never Web site that will allow, for exam- I lost my mind every time someone dramatically.The meatpacking dis- name Nitro counts fashion magnate indulges in alcohol or drugs, prima- ple, a member to go online and buy says that Ariel is hot, I’d go crazy.” trict and West 27th Street in Peter Nygard among his clients. rily because his father is an alco- another member a drink at a club in Chelsea are the latesthubs of a scene The billionaire sometimes calls on holic.“I’ve seen what it does to peo- advance. MamaKoosa.com repre- COMMENTS? [email protected]

THE WEEKS AHEAD

THIS WEEK’S EVENTS Development Corp. holds workshop on p.m. to 2:00 p.m., 24 E. 39th St. Fee: Sheraton New York, 811 Seventh Ave. to 2:00 p.m., 101 Park Ave., main floor. FEBRUARY 21 the certification process of the $50 members, $75 nonmembers. Fee: $60. (212) 210-0739 or Fee: free for members, $110 Business Development Institute, the Metropolitan Transit Authority. 3:00 (201) 692-8087 or www.newyorkbusiness.com. nonmembers in advance; additional $10 Associated Press and the FeedRoom p.m. to 4:30 p.m., 555 Bergen Ave., retailmarketingsoci@retailmarketingsociety MARCH 1 for all at door. (212) 599-6181. hold Web video leadership forum. 8:30 third floor, Bronx. Free. (718) 732-7547. .org. Pace University’s Small Business MARCH 6 a.m. to 10:30 a.m., 1290 Sixth Ave., FEBRUARY 22 FEBRUARY 28 Development Center holds workshop HSBC holds seminar on the difference sixth floor. Fee: $125. (800) 830-6687. Business Network International, chapter ConEdison Solutions holds seminar on on business planning. 5:15 p.m. to 7:30 between “on the business” and “in the FEBRUARY 21 15, holds networking breakfast. 7:00 greening your business. 8:00 p.m. to p.m., 163 William St., 15th floor. Free. business.” 6:00 p.m. to 8:00 p.m., 452 New York Society of Security Analysts a.m. to 8:30 a.m., 89 Greenwich St. Fee: 10:30 p.m., 101 Park Ave. Free. (212) 618-6655 or [email protected]. Fifth Ave., 11th floor. Free. Open to holds program on interviewing for $18. (201) 289-2208 or (212) 473-7805 or MARCH 1 business owners only. (516) 409-0849 or impact. 5:30 p.m. to 7:45 p.m., 1177 [email protected]. [email protected]. BCA Real Estate Investments holds [email protected]. Sixth Ave. Fee: free for members, $20 FEBRUARY 28 seminar on creating wealth through real nonmembers. (212) 541-3405. FEBRUARY 26-MARCH 4 Five O’Clock Club’s Executive Job estate investing. 6:00 p.m. to 8:15 p.m., MARCH 12-18 FEBRUARY 21 FEBRUARY 26 Search Group holds seminar on getting Penn Club, 30 W. 44th St., 10th floor. MARCH 13 New York Public Library holds lecture Biba4Network holds networking the most out of contacts. 6:30 p.m. to Free. (800) 249-2632 or Small Business Administration holds on financing a small business. 5:30 p.m. reception. 6:00 p.m. to 8:00 p.m., 127 8:30 p.m., 11 Penn Plaza, fifth floor. [email protected]. workshop on doing business with the to 7:00 p.m., 188 Madison Ave., room W. 26th St. Fee: free for members, $10 Fee: $50. (914) 788-5482. MARCH 1 federal government. 9:00 a.m. to 1:00 018. Free. (212) 592-7000. nonmembers. (917) 573-9808 or FEBRUARY 28 Wall Street Rising, Halstead Property p.m., 26 Federal Plaza, sixth-floor FEBRUARY 22 [email protected]. Maverick Security and InterDyn hold and Swig Equities hold seminar on conference center. Free. (212) 264-4322 Asian Women in Business holds FEBRUARY 26 breakfast program on technology for challenges and opportunities in the or [email protected]. workshop on public speaking and Real Estate & Business Investor security in the financial sector. 9:30 a.m. downtown real estate market. 6:30 p.m. MARCH 14 presentations. 6:00 p.m. to 9:00 p.m., Exchange by Meerbaum & Co. holds to 11:30 a.m., 1290 Sixth Ave. Free. to 8:00 p.m., 55 Exchange Place, suite Crain’s New York Business holds 2 Penn Plaza, 26th floor. Fee: $20 forum for investors on buying, selling (212) 502-3913. 401. Free. (212) 425-4636 or networking breakfast and program with members, $40 nonmembers. and managing real estate and businesses. FEBRUARY 28 [email protected]. New York Chief Judge Judith Kaye. 8:00 (212) 868-1368 or [email protected]. 6:00 p.m. to 8:30 p.m., 888 Seventh Workshop in Business Opportunities a.m. to 9:30 a.m., Sheraton New York, 811 FEBRUARY 22 Ave., suite 301. (212) 918-0670 or holds seminar on Web site basics. 6:00 MARCH 5-11 Seventh Ave. Fee: $60. (212) 210-0739 or Power Networking Business Series www.meerbaum.com. p.m. to 8:00 p.m., 845 Third Ave. Free. MARCH 6 www.newyorkbusiness.com. holds networking exchange. 5:00 p.m. to FEBRUARY 26 (212) 684-0854, ext. 0541, or Access Office Inc. holds seminar on —adrianne pasquarelli 8:00 p.m., 458 W. 145th St. Free. Face to Face Networking holds [email protected]. communication and presentation skills. (212) 413-9554 or [email protected]. networking reception. 6:30 p.m. to 9:30 FEBRUARY 28 6:00 p.m. to 8:00 p.m., York College, FEBRUARY 22 p.m., 402 W. 34th St. Fee: $40. Human Resources Association of New 94-20 Guy R. Brewer Blvd., Jamaica, TO LIST YOUR EVENT KIP Learning Center and Small (718) 757-6933 or York holds breakfast program on Queens. Fee: $62. (718) 262-2790. Crain’s lists business meetings online and includes Business Administration hold workshop [email protected]. becoming a brand name employer. 8:00 MARCH 6 them in the print edition on a space-available basis. on how to attract investors. 5:45 p.m. to FEBRUARY 27 a.m. to 10:00 a.m., 152 W. 44th St. New York Staffing Association holds Events in New York City with admission fees of less 8:30 p.m., 26 Federal Plaza, room 3305. Nationwide Equities Corp. holds Fee: $25 student members, $45 seminar for owners and managers. 8:30 than $300 are considered for the print publication. Fee: $40. (646) 546-5671. networking reception. 6:00 p.m. to 8:00 members, $65 nonmembers in a.m. to 1:00 p.m., 229 W. 43rd St. Fee: Listings can be submitted only through the Crain’s FEBRUARY 22 p.m., 795 Eighth Ave., second floor. advance; additional $10 at door for all. $99 members, $299 nonmembers. Web site. To submit a calendar listing, go to South Bronx Overall Economic Free. (917) 975-5985 or (877) 625-4769. (800) 264-7029 or www.newyorkbusiness.com and click on “Events.” [email protected]. MARCH 1 [email protected]. Sponsors have a choice of several free or paid list- FEBRUARY 27 Crain’s New York Business holds MARCH 6 ing options. All business events will be posted More meetings online at online within two business days. www.newyorkbusiness.com Retail Marketing Society holds lunch networking breakfast and program with Association of Real Estate Women Click on “Events” program on the apparel and home Joel Klein, chancellor of New York City holds lunch program on life after Crain’s can neither confirm receipt of listings nor say furnishings industries in 2007. 12:00 Schools. 8:00 a.m. to 9:30 a.m., MoMA in Long Island City. 11:30 a.m. if or when event listings will appear in the print edition.

40 | Crain’s New York Business | February 19, 2007 BUSINESS LIVES CORPORATE LADDER Linda Zou The Chinese connection Lender’s new VP uses to downtown Manhattan from Queens. At her new gig, she gets to PERSONNEL FILE banking and language apply skills that she learned working at five banks in the city over more COMPANY New York Business expertise to reach than a decade. Development Corp. One could say that Ms. Zou has TITLE Vice president small business owners small business banking in her blood. She’s the daughter of a Chinese AGE 38 BY TOM FREDRICKSON banker turned Brooklyn restaurant RÉSUMÉ Over 10 years in New owner,and five of her six siblings run York City banking inda zou happily dives small businesses. The other one into a 3-inch-high stack works at a bank. PERSONALITY TYPE Outgoing of financial statements BIRTHPLACE Fujian, China to process loan applica- Carrying the message tions and attends net- as the first and only Chinese- Lworking events after-hours. She language speaker on the NYBDC’s Fou’s boss. “She works well with also speaks four languages: Can- four-person New York City busi- Chinese people and every other tonese, English, Fuzhou and Man- ness development staff, Ms. Zou group.” darin. can efficiently convey the message Chinese entrepreneurs are eager With the New York Business about SBA loan programs to Chi- to learn about new sources of capi- Development Corp.—a leading nese banks and their constituents. tal, Ms. Zou says. They are particu- statewide Small Business Adminis- She’s also able to help the 51-year- larly interested in the SBA 504 pro- tration lender—striving to reach the old NYBDC build partnerships gram, which is administered by a rapidly growing Chinese small busi- with banks. nonprofit arm of the NYBDC and

ness market here, its newly minted Two of her presentations to Chi- accounts for about 90% of the loan buck ennis vice president is quite an asset. nese business groups drew high at- applications the organization re- Though some bankers might tendance and a plethora of Chinese- ceives in New York City. Ms. Zou says one of the best Bank of East Asia and Valley Na- consider such a niche activity a bore, language media coverage. Of the 14 The 504 loans require a down things about her job is that she gets tional Bank, Ms. Zou made many Ms. Zou says she is having the time loans that Ms. Zou has initiated, payment of only 10% for established to work with banks instead of vying contacts to whom she can now turn of her life as she concentrates on four—about 30%—are to Chinese businesses, compared with the 20% against them. for leads. finding customers for SBA-backed customers. That beats the 27% of or 30% needed for a standard com- “I like the fact that I don’t have to loans, which typically range from loans issued to Asians in the SBA’s mercial loan. Borrowers also save On the other side compete with my banker friends,” $2 million to $3 million. New York district office. tens of thousands of dollars because during her years as a credit and she says. “I partner with them in- “Within a month of joining “Some marketing people may they aren’t required to pay mortgage loan officer at such banks as Inde- stead.” NYBDC, I knew that I loved my not have credit skills, but she has recording taxes on a portion of the pendence Community Bank (Now job,” says Ms. Zou, who just moved both,” says Chet Sadowski, Ms. loans. Sovereign), Country Bank, The COMMENTS? [email protected]

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February 19, 2007 | Crain’s New York Business | 41 BUSINESS LIVES

EXECUTIVE MOVES

ACCOUNTING & CONSULTING Alvarez & Marsal: Gary Holcomb, 40, was HOT JOBS promoted to managing director from senior director. Doug Lambert, 49, was promoted to WANTED: PRESIDENT managing director from senior director. Ronald Winters, 50, was promoted to managing director from senior director. COMPANY Ann Taylor Loft JACKIE ROBINSON Capgemini: Lanny Cohen, 50, was JOB DESCRIPTION Overseeing the design, merchandising and visual promoted to chief executive, North elements of the Ann Taylor Loft brand FOUNDATION, INC. America, from business unit leader, Eastern region. MOST IMPORTANT TASKS Expanding chain and increasing sales Goldstein Golub Kessler: Tom Ferraro, 42, joined as partner. He had been senior CREDENTIALS NEEDED Proven leadership experience in merchandising represented by David Falk staff, corporation finance, for the U.S. SALARY Former president made $966,417 in 2005 Securities and Exchange Commission. of Newmark Knight Frank Raymond P.Jones, 50, joined as partner. DOWNSIDE Coping with reduced sales and the aftermath of a sub-par He had been managing partner at holiday season Watson Rice. UPSIDE Having the opportunity to expand the 421-store chain, which Huron Consulting Group Inc.: Joseph J. has leased Floyd, 45, was promoted to vice added 60 locations last year, to as many as 800 president from managing director. Former president Donna Noce, promoted from executive vice president of Marcum & Kliegman: Maury Cartine, 58, merchandising last June, resigned in January. Kay Krill, chief executive of joined as partner in charge, tax 30,000 SF department. He had been a principal at Ann Taylor Stores Corp., is assuming temporary leadership of Loft. Ms. Rothstein Kass. Krill was the division’s president before becoming CEO. Outsource Consultants: Richard Aguggia, —KIRA BINDRIM at 40, joined as managing director. He was formerly a principal at RFA Consulting Group.

1 HUDSON SQUARE ADVERTISING & COMMUNICATIONS DZP Marketing Communications: Keith Gibson, 29, joined as art director. He had company, Food Concepts. of Natural History. been a freelance art director at DGWB. National Geographic magazine group: for its museum, administrative Lippincott Mercer: David Leis, 31, joined LAW Stephen Giannetti, 56, was promoted to and executive offi ces as partner. He had been a principal at Davis & Gilbert: Alan Hahn,36,was senior vice president from vice president. Mercer Management Consulting. promoted to partner from associate. He continues as group publisher. Andres Nicholls, 34, was promoted to Dewey Ballantine: Suzanne Jaffe Bloom, Popular Science magazine: Jay Adams,45, partner from retail designer. 42, was promoted to partner from was appointed advertising director for Mediaedge:cia: Gerard Broussard,50, counsel. the Time Inc. title. He was formerly ad 212.602.0867 joined as a managing partner. He had Marshall Brozost, 39, was promoted to director at FHM magazine. Carl Weisbrod, President hudsonsquare.com been director of research and analytics at partner from counsel. Primedia Inc.: Jason Thaler, 35, was Jason Pizer, Director of Leasing Availabilities updated weekly GroupM Interaction. Christine Chi, 38, was promoted to promoted to general counsel from Art Christiani, 50, joined as a managing partner from counsel. deputy general counsel. He continues as partner. He had been executive vice Chang-Do Gong, 38, was promoted to senior vice president. president and chief consumer insights partner from associate. Smithsonian Publishing: Kerry Bianchi, and analytics officer at IRI. Grant & Eisenhofer: Keith M. Fleischman, 37, was named group publisher. She had Star Marketing: Riyad Abu-Sharr,47, 48, joined as partner. He had been a been director, strategic initiatives, at the joined as chief financial officer. He had partner at Bernstein Liebhard & Reader’s Digest Association. been senior vice president and chief Lifshitz. SuccessMagazine.com: Andrea Mondello, financial officer at MMG Inc. Greenberg Traurig: Howard Shapiro, 57, 45, was named Web editor. She had joined as shareholder. He had been a been Web developer at iCrossing Inc. FINANCE & INSURANCE partner at Solomon Weinberg. First Capital: Richard P.Chenel, 50, joined Steven Sinatra, 43, joined as shareholder. REAL ESTATE as managing director. He had been chief He had been a partner at Solomon Jones Lang LaSalle: Bob Hackett,47, Q. GGK’s Slogan is… financial officer at C2 Advisors. Weinberg. joined as managing director. He had “Quality Companies Are Attracted To Us” J.P. Morgan Worldwide Securities Jones Day: Alex Gendzier, 44, joined as been area director and principal at Ray, you recently joined Goldstein Golub Services: William E. Smith, 47, joined as partner. He had been a partner at King Trammell Crow Co. managing director and head of new & Spalding. Prudential Douglas Elliman: Ilan Bracha, Kessler LLP as an audit partner. What business development, Western McDermott Will & Emery: Wendy Cassity, 32, was promoted to managing director attracted you to GGK? hemisphere. He had been a managing 31, was promoted to partner from from executive vice president. director at HSBC. associate. Vanguard Title Agency Inc.: Joseph N. National Investment Managers Inc.: John Robert W. Lynn, 35, was promoted to Friedman, 75, joined as executive vice A. “I wanted to join a quality M. Davis, 45, was promoted to chief partner from associate. president and general counsel. He was company that makes sure it is financial officer from president of Isaac Marcus, 34, was promoted to formerly vice president and senior involved with clients as early as private sector retirement plans. partner from associate. underwriting counsel at Ticor Title Peter J. Solomon Co.: Cathy Leonhardt, Morgan Lewis & Bockius: Thomas V. Insurance Co. possible in planning audits, so 38, was promoted to managing director D’Ambrosio, 40, joined as partner. He that the process goes smoothly from director. had been a partner at Baker Botts. SERVICES and productivity is at its highest. Andrew L. Quigley, 42, was promoted to Phillips Nizer: Jeffrey B. Kolodny,39,was Turner Construction Co.: Charles F. managing director from director. promoted to partner from associate. Murphy, 51, was promoted to senior vice Michele A. Silva, 40, was promoted to Raymond P. Jones, CPA, CFE president from vice president. He For 42 years, GGK has offered HEALTH CARE partner from associate. Partner continues as general manager of New this kind of service and that matches American Cancer Society: Karen L. Wilson Sonsini Goodrich & Rosati: Chul York operations. 212.372.1212 Radwin, 53, was promoted to senior Pak, 44, joined as partner. He had been my own philosophy and approach.” [email protected] managing executive for the Hope Lodge an assistant director at the Federal Trade TELECOMMUNICATIONS of New York City from senior vice Commission. Crisp Wireless: Debra Bluman, 32, joined To learn more about our commercial audit services for president. Winston & Strawn: Michael Elkin,49, as vice president of product marketing. privately-held companies, our specialized services for joined as partner. He had been a partner She had been a vice president at Zingy. SEC reporting companies, hedge funds, broker-dealers, HIGH TECH & NEW MEDIA at Thelen Reid Brown Raysman & —adrianne pasquarelli and not-for-profit organizations, or to request a Application Security Inc.: Toby Weiss, 34, Steiner. joined as chief executive. He was Thomas P.Lane, 41, joined as partner. He brochure, call me or visit our website, www.ggkllp.com. formerly senior vice president and had been a partner at Thelen Reid EXECUTIVE PROMOTIONS general manager of the security Brown Raysman & Steiner. Crain’s lists the promotion and hiring of New York management unit at CA Inc. Shari Markowitz Savitt, 36, joined as area senior executives on a space-available basis, GOLDSTEIN GOLUB KESSLER LLP KickApps Corp.: David George,39, partner. She had been a partner at with priority given to positions in New York City. Certified Public Accountants and Consultants joined as executive vice president. He Thelen Reid Brown Raysman & Steiner. The fastest way to get an announcement into Quality Companies Are Attracted To USSM had been a vice president at Maven Crain’s is to submit the information online. Networks. MEDIA & ENTERTAINMENT Go to www.newyorkbusiness.com and click on 1185 Avenue of the Americas Suite 500 New York, NY 10036-2602 National Basketball Association: Gary “Executive Moves”; then click on the link to fill Tel 212 372 1800 Fax 212 372 1801 www.ggkllp.com HOSPITALITY & TOURISM Zarr, 53, joined as executive vice out the submission form. The Executive Moves Grand Central Terminal: Tony Volpe,62, president of marketing and column is also available online. was named food tenant manager. He communications. He had been a senior Crain’s cannot confirm receipt of listings or say was formerly principal of his own vice president at the American Museum when they will appear.

42 | Crain’s New York Business | February 19, 2007 BUSINESS LIVES TABLE TALK by Bob Lape ble flowers, soy sprouts and a crown Ramsay restaurant is a veritable of caponata. I love the appetizer of trolley line. Carts wheel this way seared langoustine tails ringed by and that, transporting champagnes, small, golden breaded spheres of cheeses and a score of petits fours. chicken breast,diced Granny Smith Who can eat by this time? But who apples and cauliflower cream. It’s an can refuse killer caramels, maca- imaginative Ramsay package of vi- roons,cotton candy and peanut brit- Office & Retail sual verve and harmonious flavors. tle? Not me. Availabilities: Entrées are strikingly acces- sorized. Fillet of corn-fed Brandt COMMENTS? [email protected] 212.594.2700 beef—which bills itself as “the true natural”—is paired with braised ox- slgreen.com tail, baby onions, creamed mush- BEST OF BOB LAPE rooms and Bordelaise sauce. Braised Reaching New Heights. halibut is larded with smoked salmon Following are top-of-the-line French and plated with romaine hearts, arti- restaurants. chokes and marinated lemon in a smoked horseradish velouté. Daniel ★ ★ ★ ★ A terrific dish for two is corn-fed 60 E. 65th St. (between Madison chicken, roasted on the bone, kitted and Park avenues), Manhattan. up with a fricassee of bacon, onions (212) 288-0033. Chef-owner Daniel and prunes, plus sunchoke purée Boulud’s flagship maintains its ex- and roasting jus. Pot-au-feu of pi- cellence in providing many-layered geon is lushly accoutered with dining extravaganzas for guests sautéed foie gras, stuffed cabbage from around the globe. and truffle consommé. Gordon Ramsay cuisine is often The Modern ★ ★ ★ ★ complex, but the kitchen pulls it off The Museum of Modern Art, 9 W. with gusto, frequently hitting Asian 53rd St.(between Fifth and Sixth av- and Mediterranean taste notes. enues), Manhattan. (212) 333-1220. Desserts are the most straight- Danny Meyer and chef Gabriel forward of the courses, with cara- Kreuther exhibit world-class, mod- melized apple tarte Tatin for two ern French-American cuisine and ERNEST KLEIN and apricot soufflé with Amaretto hospitality at the museum’s elegant ice cream leading the charge. A new restaurant complex. & CO.

buck ennis cone-shaped and intense chocolate ★ ★ ★ ★ COOLLY ELEGANT SANCTUARY: The 40-seat fine-dining component of Gordon Ramsay at The fondant is decked out in plate squig- Per Se FINE FOODS London is modeled on Mr. Ramsay’s London restaurant that earned three Michelin stars. gles and artful cookie shapes. Time Warner Center, 10 Columbus

Echoing Alain Ducasse, the Circle, fourth floor, Manhattan.  Same Day Delivery (212) 823-9335. Chef Thomas Keller, who yo-yos between New York and  Phone Orders his famed French Laundry in Napa, Calif., shows why he is America’s  Corporate Accounts Scottish chef top performer of contemporary  Catered Luncheons French creativity. Posh setting, 760 wines. Located at: Sixth Ave. and 55th St. stars in French Picholine ★ ★ ★ ★ 35 W. 64th St. (between Broadway 212.245.7720 smoothly and calmly under chef de and Central Park West),Manhattan. A FULL SERVICE SUPERMARKET Gordon Ramsay cuisine Neil Ferguson, numbers 100. (212) 724-8585. An elegant redesign, at The London serves The total restaurant staff is 230, tak- exciting new menu and reinvigorat- ing care of the jewel in the crown plus ed spirit move Terrance Brennan’s artfully prepared food; 135 seats at the adjacent,casual Lon- temple to modern Mediterranean don Bar and hotel room service. GORDON RAMSAY cuisine to the top of the list. ■ bargain in peer group On the subject of numbers, this restaurant is a bargain in its peer AT THE LONDON The London NYC hotel nyone expecting group. A proper British breakfast or 151 W. 54th St. kitchen explosions at elaborate afternoon tea is $35, and (between Sixth and ® fiery Scottish chef the $80 three-course dinner com- Seventh avenues) FREE Aeron Repairs* Gordon Ramsay’s new pares favorably with that at other (212) 468-8888 Manhattan digs will tough ticket destinations. ★★★ by New York’s #1 authorized repair and service center. Abe disappointed. The rest of us will Meticulous service of impecca- Your Aeron® or other chairs refurbished like new! happily settle for the carefully con- bly prepared food is the name of the CUISINE Modern French trolled pyrotechnics on the plates at game here,in a serene contemporary this coolly elegant sanctuary of the setting where beautiful sconces are WINES 810 choices, 29 by the TRADE-INS WELCOME savory nestled inside The London multiplied by shimmering wall sur- glass NYC hotel. faces. Soft light levels, however, DRESS Jackets preferred With almost a dozen restaurants don’t do justice to the artistry of the NOISE LEVEL Moderate under his toque, chef Ramsay is sel- food, presented on Limoges china. New York City dom sighted at the epicenter of the The clientele does not always dress PRICE RANGE Three courses, $80; Blackstone Group’s $50 million up to the occasion, I’m sorry to say. seven-course tasting menus, $110 makeover of the former Rihga Roy- Truffles, foie gras and caviar WINE MARKUP 100%-300% 12 West 20th Street (bet. 5th & 6th Ave.) al hotel. But the highly competitive make frequent appearances in the 900 3rd Avenue (bet. 54th & 55th St.) ex-pro soccer player deems New Ramsay repertoire. Truffles per- CREDIT CARDS All major York where it’s at in the hospitality fume an amuse-bouche and scent a RESERVATIONS Essential; plan Call Evan 212•813•6666 ext. 119 big league and hopes to head-butt a rich sauce for diver scallops. Oven- ahead few of the greats,culinarily speaking. roasted foie gras gently jiggles in a or e-mail: [email protected] The 40-seat fine-dining compo- presentation with caramelized pears HOURS Seven days, Lunch, noon- Visit us at www.samflaxny.com nent of The London—a chef ’s table and a date mille-feuille. A mosaic of 2 p.m.; Dinner, 5:30-10:30 p.m holds eight more in the kitchen—is seafood framed by saffron potatoes ★★★★= Outstanding modeled on Mr. Ramsay’s London and tomato consommé is dappled ★★★= Excellent restaurant that earned three Miche- with caviar. ★★= Very good *Subject to terms and conditions ofHerman Miller 12 Year Manufacturers Warranty. lin stars.Consider the talent amassed Marinated tuna carpaccio stars ★= Good If chair is outside of warranty contact us for free inspection and/or trade-in information. here: The kitchen crew, functioning in a colorful composition with edi-

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