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20160523-NEWS--0001-NAT-CCI-CN_-- 5/20/2016 8:42 PM Page 1 CRAINS
® MAY 23-29, 2016 | PRICE $3.00 NEW YORK BUSINESS
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0 71486 01068 5 21 NEWSPAPER WE’RE IN.
CBRE is honored to take home a historic 34th win ingenious. in the Real Estate Board of New York’s Most Ingenious Deal of the Year Awards. Lauren Crowley Corrinet, Gregory Tosko and Sacha innovative. Zarba received the 2015 Robert T. Lawrence Memorial Award for helping our client, LinkedIn, expand at The Empire State Building— inspiring. inspiring an icon to innovate for one of tech’s most innovative companies. We’re proud of our creative partnership with LinkedIn— and the advantage we bring to the tech sector in its growth across New York City. 20160523-NEWS--0003-NAT-CCI-CN_-- 5/20/2016 8:33 PM Page 1
MAYCRAINS 23-29, 2016
FROM THE NEWSROOM | JEREMY SMERD Interesting conflicts IN THIS ISSUE 4 AGENDA
THE MOST RECENT DUSTUP 5 IN CASE YOU MISSED IT between Gov. Andrew Cuomo and No good subway Mayor Bill de Blasio, this time over the development of two 6 ASKED & ANSWERED improvement goes unpunished residential buildings at Pier 6 in Brooklyn Bridge Park, says 7 TRANSPORTATION a lot about their attitudes toward the incestuous way 8 WHO OWNS THE BLOCK politics and business commingle in New York. 9 INFRASTRUCTURE The mayor wants to push his agenda in the face of 10 questions about quid pro quos for campaign donors, while VIEWPOINTS the governor, facing similar questions, is more than happy to shine a spotlight on the FEATURES mayor as several probes by U.S. Attorney Preet Bharara The mayor and 14 THE LIST and Manhattan District Attorney Cy Vance play out. 21 THE SMELL OF SUCCESS The tiff is definitely not about the policy long agreed governor’s tiff 22 HOT SAUCE MAVENS upon by the city and the state: to build housing in the says a lot about the 24 NEW MODEL FOR MOVIES maritime park to raise much-needed revenue to maintain way business is done its underwater infrastructure. in New York I don’t live close to Brooklyn Bridge Park but I share P. 9 the concerns of locals and their elected leaders. The idea Scott of building housing in a park, especially on the banks of Rechler the East River with exquisite views of Manhattan, is offensive. Parks exist precisely because we plebeians can’t afford to live in a unique place like Brooklyn Bridge Park. Adding affordable housing to the plan, as the mayor wants to do, only reminds us that affordable housing is a lottery for the lucky few, intended to absolve society of the guilt we feel that New York is so expensive— without actually doing anything to make it less expensive. Be that as it may, appearances of a conflict of interest, not policy, motivated the 36 GOTHAM GIGS governor’s Empire State Development Corp. last week to postpone a vote that was 37 expected to allow the de Blasio administration to add affordable housing to the SNAPS plan. The potential conflict: RAL Development won the Pier 6 contract a month 38 FOR THE RECORD after it and its lobbyist, James F. Capalino & Associates, gave $20,000 to the 39 PHOTO FINISH mayor’s Campaign for One New York. The mayor says it’s all perfectly legal. That may be. It’s perfectly legal that CORRECTIONS Capalino repped the Brooklyn Bridge Park Conservancy, the park’s fundraising LAURIE GLIMCHER will leave her role as dean of Weill Cornell Medicine on May 31. Her departure date was incorrect in the arm that shares an office with Brooklyn Bridge Park Corp., which is pushing for May 16 Asked & Answered. the housing. And it’s legal that Brooklyn Bridge Park Corp. shares a PR firm, Risa The film Money Monster booked multiple rooms for up to 15 Heller Communications, with RAL and Capalino. nights at the Andaz Wall Street. That number is described The mayor is right that this is the way business in New York is done. But that incorrectly in “The New Movie Shooting Paradigm” on page 24. doesn’t make it OK. It looks terrible, especially in an era of pay-to-play prosecutions. The governor’s people, whatever their intentions, see this; the mayor, to his detriment as he digs his heels in, does not.
Applications remain open! DEADLINE EXTENDED ON THE COVER CRAIN’S FASTEST- GROWING COMPANIES PHOTO COMPOSITE: DANIELLE SLADEK Each year, Crain’s recognizes the New York-area companies with the highest three-year DIGITAL DISPATCHES revenue growth rate. Public and private companies Go to CrainsNewYork.com with at least $10 million READ in revenue are eligible. Danny Bennett was named CEO of SHOW EVERYONE HOW > Universal Music Group’s FAST YOU REALLY ARE new Verve Label Group. CrainsNewYork.com/ ■ ApplyFast50 RXR Realty closed its $1.7 billion purchase of 1285 Sixth Ave.— one of the largest office-building transactions in the city this year. UBS will Vol. XXXII, No. 21, May 23, 2016—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double remain in the building through 2032. issues the weeks of June 27, July 11, July 25, Aug. 8, Aug. 22 and Dec. 19, by Crain Communications Inc., 685 Third Ave., LISTEN New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send address to the woman behind Queen Majesty changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. Hot Sauce in this week’s podcast. Music by For subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one year, $179.95 two years.(GST the Frightnrs. CrainsNewYork.com/podcast No. 13676-0444-RT)
BUCK ENNIS, KELSEY BENNETT ©Entire contents copyright 2016 by Crain Communications Inc. All rights reserved.
MAY 23, 2016 | CRAIN’S NEW YORK BUSINESS | 3 20160523-NEWS--0004-NAT-CCI-CN_-- 5/20/2016 7:22 PM Page 1
AGENDAWHAT’S NEW MAY 23, 2016 The narrow interests of a few make
the city more expensive and less safe SAFETY FIRST: Dan Mooney’s t’s always sad when New York City politics and bureaucracy kill compact crane investors had four more built. works from an entrepreneur’s dream. But one such story, recounted by our within a building, He planned to design larger Peter D’Amato in last week’s Crain’s, is especially infuriating reducing risks. ones, too, for use on taller because the innovator, crane operator Dan Mooney, wasn’t the towers. Local 14 was at risk of Ionly victim. The whole city lost. losing its stranglehold on Mooney invented a crane that is cheaper, faster and safer than the crane labor, which the union tower cranes dominating the city’s skyline. It doesn’t take an engineer- justifies on the grounds that ing degree to see why his Skypicker is superior. Much smaller than a operating cranes in the city is tower crane, it has a boom affixed to a solid column that is bolted to each dangerous. floor of the building it is erecting. Immune to the deadly collapses caused Then in 2013, without by wind or the raising and lowering of other cranes, it doesn’t require the warning, the city’s $80 million liability insurance policy that tower-crane projects do. Department of Buildings As a building goes up, the Skypicker can climb to the next floor in revoked the Skypicker’s approval and demanded Mooney start from minutes, rather than half a day, controlled by a single operator, not the scratch. Having spent $2.5 million so far, he can’t afford to design and highly paid crew that tower cranes need. Nor does the Skypicker require build new cranes and take them through a costly approval process. So his Class A-licensed operators, whose compensation packages cost $106 an five Skypickers have spent three years collecting dust in a Queens ware- hour. Not surprisingly, when the house. To ensure they remain there, Skypicker was first used four years ago The Skypicker is cheaper and less Local 14 got Councilman Ben Kallos to to construct a 34-story midtown hotel, dangerous, but threatened to end a union’s sponsor a bill regulating Skypickers as if it was picketed by Local 14-14B of the monopoly. Then the city deemed it illegal they were tower cranes. The union International Union of Operating rewarded Kallos with campaign contri- Engineers, which represents virtually butions. all Class A crane operators in the city. Anonymous complaints targeted The Skypicker’s fate is a classic example of how parochial interests in the machine, but inspectors always found it working exactly as New York stifle innovation that can solve fundamental problems—in this designed. case, the high costs of building in the city. Instead of drafting legislation Mooney had created an ideal hoisting device for projects up to 35 sto- relegating the Skypicker to the scrap heap, the City Council and the ries that otherwise must use tower cranes or crawler cranes, both of Buildings Department should devise a path for more Skypickers to come which have been plagued by fatal accidents in recent years. As develop- to a market desperate for an alternative to the deadly status quo. ers lit up Mooney’s phone inquiring about the Skypicker, he and several – THE EDITORS
FINE PRINT New York’s public hospital system wants to enroll more people in its insurance arm, MetroPlus, to reverse a budget hole expected to grow to $1.8 billion by 2020. The insurer announced last week it is seeking to raise monthly premiums by 20%, which could make it less competitive. Still, CEO Dr. Ram Raju said MetroPlus will remain the cheapest option at Obamacare’s gold and platinum levels.
BY GERALD SCHIFMAN STATS 25 WORDS OR LESS THE METROPOLITAN TRANSPORTATION AUTHORITY’S Access-A-Ride service strands thousands of senior STRESS-A-RIDE citizens and disabled New Yorkers, according to the city comptroller’s office, which blamed unaccount- AND THE CITY AND THE Unfulfilled Access- able contractors and poor supervision by the MTA. It was [like] Data shown here are for 2015. “ A-Ride requests, 233,811 at least 13.4% being asked to attributable to no-show drivers Pickup and drop-off join the records manipulated by 2.6M Access-A-Ride providers to Pantheon feign on-time performance — Morley Safer, who died May 19, on Estimated portion of Access-A-Ride getting his first job offer from CBS in trips with unreliable or missing GPS 73% trip data, preventing the MTA from the early 1960s. He spent 46 years accurately determining when to withhold payment at 60 Minutes and officially retired Approximate amount the MTA just days before his death. paid for 4,185 Access-A-Ride $130,000 trips that never happened
BUCK ENNIS ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY Source: NYC comptroller
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AGENDA ICYMI CRAINS EDITOR IN CHIEF Rance Crain publisher, vp Jill R. Kaplan assistant to the publisher Devin Arroyo, 212.210.0701 Bratton’s precision-policing EDITORIAL editor Jeremy Smerd assistant managing editors Erik Engquist, plan may need sharpening Peter S. Green, Jeanhee Kim web editor Amanda Fung copy desk chief Steve Noveck he Police Department says it is using a “scalpel” art director Carolyn McClain photographer Buck Ennis to cut crime. But where Commissioner Bill Bratton senior reporters Joe Anuta, Aaron Elstein, will operate next is anyone’s guess. Matthew Flamm, Daniel Geiger reporters Rosa Goldensohn, T Jonathan LaMantia, Caroline Lewis, Earlier this month he described his “precision polic- Addie Morfoot ing” approach as “fewer arrests for minor offenses— data reporter Gerald Schifman web producer Peter D’Amato ‘broken windows’ types of offenses—while at the same columnist Greg David contributing editors Tom Acitelli, time more significant numbers of arrests for the serious CRUSHED: Bulldozers Theresa Agovino, Barbara Benson, crimes that we’re focusing on.” Collars for major crimes destroy unregistered Erik Ipsen, Judith Messina, trail bikes confiscated Cara S. Trager are up, he said. by the NYPD ADVERTISING www.crainsnewyork.com/advertise Gang violence and criminal enterprises are a top pri- advertising director Irene Bar-Am [email protected] or ority. The NYPD promised 20 gang takedowns before 212.210.0133 the Fourth of July. Officials charged 120 suspected gang senior account managers Zita Doktor, Jill Bottomley Kunkes, Rob Pierce, members on April 27, a week after 32 were busted in Stuart Smilowitz senior marketing coordinator East Harlem. LeAnn Richardson sales/events coordinator Ashlee Schuppius Yet, clearly, the commissioner knows that the public cares as much about quality-of-life infrac- 212.210.0282 tions, which may explain why Bratton last week presided over a ceremonial crushing of dozens of il- [email protected] ONLINE legal dirt bikes, calling their riders “nitwits and knuckleheads.” He has also cracked down on scam- general manager Rosemary Maggiore 212.210.0237 mers who sell tourists fake ferry tickets to the Statue of Liberty, and has put subway acrobats on notice. [email protected] The trick for the commissioner and his boss, Mayor Bill de Blasio, will be to avoid alienating the CUSTOM CONTENT director of custom content mayor’s African-American voter base by repeating the mistakes of stop-and-frisk, which created a Patty Oppenheimer 212.210.0711 [email protected] political maelstrom during the Bloomberg administration for its profiling of young men of color. custom content manager “While he’s calling it precision policing, his scalpel may need to be more finely tuned in order to Giovanni Perla [email protected] EVENTS avoid people who don’t deserve to be in the [criminal justice] system,” said John Jay College professor www.crainsnewyork.com/events director of conferences & events Delores Jones-Brown. – ROSA GOLDENSOHN Courtney Williams, 212.210.0257 [email protected] manager of conferences & events Adrienne Yee AUDIENCE DEVELOPMENT Silver’s summer break DATA POINT Citi Bike expands director of audience & content Sheldon Silver will get to spend most NEW YORK CITY ADDED 99,800 JOBS The bike-share program will install partnership development of the summer outside of prison. A docking stations in parts of Brooklyn, Michael O’Connor, 212.210.0738 [email protected] federal judge delayed until Aug. 31 IN THE 12 MONTHS THROUGH APRIL, as well as northern Manhattan below CRAIN’S 5BOROS the surrender date for the former 82% OF THE NET JOB GROWTH FOR 110th Street. www.5boros.com Assembly speaker, who was sen- Irene Bar-Am, 212.210.0133 tenced to 12 years for taking kick- THE ENTIRE STATE IN THAT PERIOD. Rising water [email protected] REPRINTS backs and bribes. Silver was to THE CITY HAS 45% OF THE STATE’S The Water Board approved a 2.1% reprint account executive Krista Bora surrender July 1. He also won a two- hike in water rates, the smallest 212.210.0750 POPULATION. month delay, to Aug. 15, to start pay- increase since 2001. The annual bill PRODUCTION ing $7 million in fines and restitution. for a typical multifamily apartment production and pre-press director Simone Pryce will rise from $686 to $700. The city media services manager Nicole Spell Goodbye, Time Warner Cable attendance has increased, expenses plans to invest $16.8 billion in water SUBSCRIPTION CUSTOMER SERVICE Charter Communications will drop have risen 20% since fiscal 2013 to and wastewater infrastructure over www.crainsnewyork.com/subscribe – AMANDA FUNG [email protected] the Time Warner Cable brand, $38.6 million. the next decade. 877-824-9379 (in the U.S. and Canada). which has had poor customer-ser- $3.00 a copy for the print edition; or $99.95 vice ratings for years. Charter just Amazon takes on UberEats one year, $179.95 two years, for print Brewery move subscriptions with digital access. completed its $55.1 billion acquisi- Amazon launched free one-hour Brooklyn to contact the newsroom: tion of TWC, and promised to food delivery service in parts of www.crainsnewyork.com/staff Brewery will 685 Third Ave., New York, NY 10017-4024 improve customer service. Manhattan for its Prime subscribers. move its phone: 212-210-0100 fax: 212-210-0799 More than 350 eateries, including Le Williamsburg Entire contents ©copyright 2016 Curbing fake ticket sellers Pain Quotidien and Junior’s Rest- Crain Communications Inc. All rights headquarters reserved. ®CityBusiness is a registered The NYPD arrested nearly a dozen aurant & Cheesecake, are partici- trademark of MCP Inc., used under license people on charges of selling fake pating. To set itself apart from to the agreement. ferry tickets to the Statue of Liberty UberEats and Seamless, Amazon Brooklyn Navy CRAIN COMMUNICATIONS INC. Yard, a massive industrial complex BOARD OF DIRECTORS and Ellis Island. The suspects promises refunds on items priced chairman Keith E. Crain worked for five different compa- higher than what is listed on menus. in the borough. The company president Rance Crain nies, three of which were operated leased 75,000 square feet at treasurer Mary Kay Crain, Cindi Crain Building 77, where it will have executive vp, operations William Morrow by parolees with a history of serious New pronouns executive vp, director of strategic crimes. They face charges of fraud- Landlords and employers are now offices, a food hall, a operations Chris Crain manufacturing hub and a beer executive vp, director of corporate ulent accosting. required to use individuals’ pre- operations K.C. Crain ferred gender pronouns. Under the garden. Visitors will be able to take senior vp, group publisher David Klein Brooklyn Museum cutbacks Commission on Human Rights’ new tours and view how the brews are vp/production, manufacturing David Kamis chief financial officer Thomas Stevens Facing a projected $3 million legal guidelines intended to combat crafted while having a bite to eat. chief information officer Anthony DiPonio deficit, the Brooklyn Museum will discrimination, transgender people The new space will open in 2018. founder G.D. Crain Jr. [1885-1973] offer buyouts to staff and cut may choose to be referred to as “ze” Brooklyn Brewery said it will chairman Mrs. G.D. Crain Jr. [1911-1996] secretary Merrilee Crain [1942-2012] spending. To boost income, the or “hir.” Landlords and employers maintain its Williamsburg spaces museum plans to invest in its who intentionally ignore their until those leases expire in 2025.
NEWSCOM, BUCK ENNIS restaurant and retail shops. While requests face fines up to $250,000.
MAY 23, 2016 | CRAIN’S NEW YORK BUSINESS | 5 20160523-NEWS--0006-NAT-CCI-CN_-- 5/20/2016 5:47 PM Page 1
AGENDA ASKED & ANSWERED FOOD INTERVIEW BY AARON ELSTEIN
WAYNE NORBITZ Nathan’s Famous
ayne Norbitz recently retired as president and We’re like Nike chief operating officer of Nathan’s Famous, “in that we don’t whose hot dogs are synonymous with sunny manufacture afternoons at Coney Island. He remains a anything, but boardW member and is helping spread the word about Nathan’s 100th anniversary on May 28, when for three hours hot dogs will we’re selling a be sold at its flagship at the 1916 price of 5 cents. For all the brand, an fun, however, hot dogs are a serious business at Nathan’s. experience.
So, how’s the hot dog business these days? We’ve gone from a one-stand business in Brooklyn to our hot dogs being sold in about 50,000 supermarkets around the na- tion. We own five restaurants in New York and franchise another 300 across the country and abroad. The last few years have been especially good. Our stock price has grown more than twice as much as the S&P restaurant index over the last five years or so, while our revenues have nearly doubled. Our pretax profit margins are about 20%, which is quite high for the food business.
How do you do that? We’re like Nike in that we don’t manufacture anything, but we’re selling a brand, an experience. Our hot dogs are made by anoth- DOSSIER er company that also promotes them, and we collect about a WHO HE IS Former president 10% royalty. The fact that we’re selling something that New York- and chief operating officer, ers have eaten for 100 years has become very attractive to fran- Nathan’s Famous, now special chise operators here and overseas over the past decade. consultant and director How do you square growing hot dog sales with people eating healthier? AGE 68 Sure, people are eating healthier, but they still like hot dogs. And BORN Bronx crinkle-cut fries. There are lots of opportunities for us to grow RESIDES Dix Hills, L.I. selling a premium all-beef product and plenty of places where EDUCATION B.A., Long Island you still can’t buy our hot dogs, like international airports, where University we think they would sell well. The key for us is growing without in- BURGERS AND DOGS Norbitz curring a lot of costs. We realized about 25 years ago that you joined Nathan’s in 1975 after his don’t need to build a building to sell a hot dog. family’s hamburger chain, Wetson’s, merged with the company. He became Is the family of founder Nathan Handwerker still involved? president in 1989. When I joined in 1975, I worked for Nathan’s son Murray, who DUTY CALLS At the annual Nathan’s Hot taught me how to make hot dogs. The company went public back Dog Eating Contest, Norbitz presents the in 1971, and in 1987 the family sold the business in a $25 mil- bejeweled mustard-yellow belt to the winner. lion leveraged buyout to a group of investors that included ANY SIDES WITH THAT? After Sonya Howard Lorber, who is chairman of the board. Thomas downed 40 hot dogs in 10 minutes to win the first Nathan’s Hot Dog Eating Contest for women in 2011, she sat down on a bench to
Lorber got a shout-out from Donald Trump after his victory in the New York BUCK ENNIS Republican primary, didn’t he? catch her breath. Norbitz asked if she needed Yes, he and Donald know each other from the real estate world. anything. Thomas replied: “I’d really like some french fries and a beer.” Howard is chairman of Douglas Elliman. Their relationship has nothing to do with hot dogs.
When did the Fourth of July hot-dog-eating contest start, and why do you think so many people watch? The first one goes back to the early 1970s, and back then our goal was to get a picture in the newspaper. Today, it’s priceless advertising for us and camera crews from all over the world cover it. It’s broadcast on ESPN and 40,000 people come to see it in person. Why? I think people watch for the same reason they watch NASCAR. You’re waiting for the crash, or whatever it is that might happen if you eat 69 hot dogs in 10 minutes.
What do you put on your hot dogs? I like them naked, nothing on them. The way God made them. Ⅲ
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AGENDA TRANSPORTATION
F’ing upset at plan to revive express train
A civil war erupts in Brooklyn over whose stops get skipped BY ROSA GOLDENSOHN AND ERIK ENGQUIST
ever has the was Greenfield’s turn to trip to Manhattan. express, the MTA board restoration be livid. His con- “I can’t imagine that would flip-flop and for this for years, and it to wait 1.2 minutes at a of a much- stituents endure a te- after studying the issue screw over hundreds of wouldn’t make sense to handful of stations in missed dious commute on the for years and issuing a thousands of Brooklyn- change course now just neighborhoods that al- Ntransit service caused slow-moving F, while strong recommendation ites,” Greenfield said. because a few politicians ready have great mass- such an uproar as it did Lander’s have a short to bring back the F “We have been waiting are upset about having transit options.” Ⅲ last week when an elected official an- nounced that F-train express service would return to Brooklyn after a 30-year absence. City Councilman David Greenfield, D- Borough Park, an- nounced May 17 that F express trains would start rolling this sum- mer after they were suspended in 1987. He David Seelinger CEO said the Metropolitan EmpireCLS Transportation Auth- ority had told him so after releasing a 37- page analysis that rec- ommended restoring the service. But after heated objections from other elected officials who were not looped in on the plan, and who rep- resent users of local sta- tions that the express Driving trains would skip, the MTA walked back efficiency. Greenfield’s statement. “If we move forward with the F express,” an MTA spokesman said, “it will start in the fall of 2017.” The agency plans to Understanding solicit feedback from the affected communi- ties before moving for- what’s important. ward. But it has already heard from Carroll Gardens, Boerum Hill and Dumbo that simply diverting some local As a luxury limousine company that serves customers around the globe, personal service, professionalism and efficiency trains to the express track won’t fly, be- are everything to EmpireCLS Worldwide Chauffeured Services. And David Seelinger finds M&T Bank shares those values. cause riders on local We took the time to truly understand their operation and anticipate their needs, and we’re able to make credit decisions trains would suffer longer waits and more locally – helping the company to keep moving forward. To learn how M&T can help your business, visit mtb.com/commercial. crowded stations and trains. They were not happy at being blind- sided by the news, either. Councilman Brad Lander, D-Park Slope, said the MTA “had promised to talk to us about what the study showed … before DEPOSITORY AND LENDING SOLUTIONS | TREASURY MANAGEMENT | MERCHANT SERVICES | COMMERCIAL CARD making an official rec- ommendation.” When the transit Equal Housing Lender. ©2016 M&T Bank. Member FDIC.
BUCK ENNIS agency backtracked, it
MAY 23, 2016 | CRAIN’S NEW YORK BUSINESS | 7 20160523-NEWS--0008-NAT-CCI-CN_-- 5/20/2016 5:48 PM Page 1
AGENDA WHO OWNS THE BLOCK REAL ESTATE
Queens’ tallest tower proposed for busy Long Island City Rezoning spurs a building boom in an industrial neighborhood
RENDERING OF BY TOM ACITELLI CITY VIEW TOWER
n early April, Queens-based United Construction and Development request- ed permission from the Federal Aviation Administration to build a 984-foot, 79- 24-01 44TH ROAD Istory tower on nine parcels centered on 23-15 The United Nations Federal Credit Union 44th Drive in Long Island City, adjacent to the bought this site in January 2004 for $12 mil- City University of New York’s law school. The lion and developed a 274,000-square-foot building, dubbed City View Tower, would be office building called Court Square Place. The credit union occupies about half of the the tallest in the borough. By a lot. space. When it was finished in 2006, Court If approved by the FAA and the Buildings Square Place was the tallest office building Department, City View Tower would be more constructed in Long Island City in 16 years. than 300 feet taller than the current record 23-15 44TH DRIVE holder, a 50-story tower at One Court Square built in 1990, which sits with its 15-story annex City View Tower, slated to be Queens’ tallest building, would rise here. The (built in 2007) just across 44th Drive. Originally vacant lot was bought in June 2015, built and occupied by what is now Citigroup, it along with eight other properties on was LIC’s lone tower into the 21st century. Real the block, for $143 million by United 43-30 24TH ST. Construction and Development. estate investment firm Savanna bought One Manhattan-based developer Stawski Court Square in 2014 and last year briefly con- Partners bought control of the sidered converting the taller building into resi- 62,500-square-foot warehouse in dences. March from the Neiman Marcus Group for $8.86 million. Stawski At least four residential buildings are either has proposed an 839,000-square- proposed or underway near City View Tower, foot residential tower on the site. which itself would be a residential project. The 16-story United Nations Federal Credit Union headquarters at Court Square Place opened in 2006, replacing a two- story warehouse. It was 23-01 44TH DRIVE 43-25 HUNTER ST. the first Long Island City The three-story, 6,694-square-foot mixed-use building is Manhattan-based Rockrose Develop- commercial building con- in the footprint of City View Tower and was part of the ment bought the commercial building structed without an $143 million sale in June 2015. It is the only one of the here in January 2006 for $15.5 million. The company is constructing 974 apart- anchor tenant (the credit nine properties to have changed hands over the past 15 years. It sold for $1.9 million in October 2006. ments in a 50-story tower and a 14- union took only six floors). story building. The complex is expected More low-rise buildings to be finished in late 2017. are coming down as the neighborhood transi- tions from its manufacturing and industrial past to a mixed-use future. This change is largely attributable to a 2001 rezoning of a 37-block area that includes these buildings. Since then, more than 10,000 apart- ments and 1.5 million square feet of office space have been developed, according to the city’s Economic Development Corp. 25-01 JACKSON AVE. Long Island City is changing quickly, said Mi- 21-30 44TH DRIVE Investment group Waterbridge Capital guel Oks, a longtime property investor in the area Brooklyn-based developer Planet Part- bought the two-building, 1.7-million- and manager of a condo project underway there. ners paid $13.7 million for the site in square-foot office and retail complex With several subway lines connecting it directly April 2014. It held two commercial known as One Court Square for $481 buildings, including a warehouse. million in July 2012. Savanna, an to Manhattan, Oks said, “it is going to become, Work is underway on a 74-unit, eight- asset management and private-equity we think, in two years, a 24/7 district.” story condo building. firm, bought a controlling stake in the complex in August 2014 for an undis- closed sum. Savanna in 2015 briefly considered selling the complex for a residential conversion. OASISNYC.NET, UNITED CONSTRUCTION AND DEVELOPMENT UNITED CONSTRUCTION OASISNYC.NET, GROUP
8 | CRAIN’S NEW YORK BUSINESS | MAY 23, 2016 20160523-NEWS--0009-NAT-CCI-CN_-- 5/20/2016 3:28 PM Page 1
AGENDA INFRASTRUCTURE
He wants his plan to be governance. Rechler helped Vice chair leaves Port Authority reconsidered, because the tackle those issues, and Lincoln Tunnel can’t carry pushed to overhaul the with successes and frustrations enough buses to keep up agency’s capital budget. with the growing number of Funding must now be iden- Scott Rechler says decision-making remains tangled up in politics BY DANIEL GEIGER commuters. “It still makes tified before a project can be sense to have terminals in put in the budget, and as cott Rechler, the real authority’s Manhattan bus where it could connect with New Jersey so that we new projects are brought in, estate developer who terminal into an already- existing PATH and New relieve the traffic coming lower-priority projects must helped push through burdened capital plan. Jersey Transit trains to into Manhattan,” he said. be pushed out. changes at the scan- Rechler said that after Manhattan. Jameson Doig, a Prince- Rechler also instituted a Sdal-scarred Port Authority of five years on the board, he Degnan threw that plan ton University professor process to evaluate the New York and New Jersey, had been “looking for the out, threatening to pull his who’s studied the agency, urgency of state-of-good- said frustration over bickering right exit moment” to focus support for a redevelopment agreed. “It’s a fair criticism repair investments to en- among the agency’s leaders on his business. He expects of LaGuardia Airport’s of John and perhaps others sure existing infrastructure and the continued influence to leave by the fall. Central Terminal if board who resisted having a close wouldn’t be neglected. of politics on its decisions RXR has grown from $2 members didn’t concede. analysis of various ways to “The more we deliver helped prompt his recent billion to $13 billion in “It would be unfair to say it divide the bus terminal into projects on time and on decision to step down as property holdings during doesn’t in some way influ- two facilities in a way that budget, the more we can board vice chairman of the that period and has been ence my view on things,” would make sense and pos- turn to the public and say bistate agency this year. one of the most active pur- Rechler said about the argu- sibly save money,” he said. we’re delivering. But there Rechler, who is chairman chasers of commercial real ment over the capital plan. Rechler’s tenure since has to be some level of user of RXR Realty, said he was estate in the city. “It would not have been the 2011 overlapped with the fees to offset the costs,” frustrated by a board meet- Rechler, who was way I would have done it, World Trade Center rebuild- Rechler said. “No one likes ing in March during which appointed to his unsalaried and in my mind it was not ing project, which was years to pay fees, but when peo- commissioners openly position by Gov. Andrew what we like to call the ‘new behind schedule and billions ple see the Port can deliver, argued with one another, Cuomo, had proposed shav- Port Authority.’ ” of dollars over budget. it changes the dynamic.” and Chairman John Degnan, ing the cost of a new bus “John was under political The 2013 Bridgegate scan- Rechler is being consid- an appointee of New Jersey terminal by exploring ideas pressure,” Rechler added, dal revealed abuses of ered to lead the Regional Gov. Chris Christie, forced a to relocate a portion of the noting the two enjoy a good power, deep state rivalries Plan Association’s board of $10 billion revamp of the facility to New Jersey, working relationship. and the authority’s opaque directors. Ⅲ
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MAY 23, 2016 | CRAIN’S NEW YORK BUSINESS | 9 20160523-NEWS--0010,0011-NAT-CCI-CN_-- 5/20/2016 2:45 PM Page 1
AGENDA
Retail hits turning point— and heads in wrong direction Signs of weakness as sales drop, rents weaken and store locations go unwanted
THE NEWS FOR the trouble for the rest of the year, but online competitors they would need the five consecutive quarters of retail sector this insists the fundamentals of New York to cut prices to the detriment problems for Macy’s suggest that it month has been very real estate remain sound. of profits. may have. Even in booming New bad. To wit: REBNY’s optimism might turn out Economists are tracking a deci- York, retail employment has shown ● Macy’s reported its to be wrong. sive shift in consumer priorities that year-over-year declines for months. fifth consecutive Consider what has happened to is partly to blame. Spending on Nationally, whether the Sports quarterly decline in Macy’s. travel and entertainment Authority locations can be leased and same-store sales, Sales began to weaken last has increased robustly—at at what rents will be an important GREG DAVID with an eye-opening year, and the retailer placed a the expense of purchases indicator. So, too, will be what hap- 5.6% drop in the lat- lot of the blame on interna- of goods. pens in Times Square, where, in est three-month period. Its stock is tional tourists who continue $30 But the biggest headache addition to the Aéropostale site, two languishing at $30 a share, down from to visit New York in large MACY’S for retailers is online shop- other big locations are seeking new $72 in July of last year. numbers but have curtailed share price, ping. Amazon apparel sales tenants. ● Sports Authority filed for bankrupt- their shopping at places like down from recently topped $1 billion. For years, the New York retail rent cy, couldn’t attract any bidders for its the Macy’s flagship on West $72 last July The fact that no one— story has been framed as big national assets, and will close its 450 stores 34th Street. (Other compa- including rival Dick’s firms displacing valued longtime nationwide. Teen-clothing chain nies, such as Tiffany’s, also Sporting Goods—wanted the local shops. If the tipping point is Aéropostale also filed for bankruptcy attributed their poor results to visi- Sports Authority locations shows here, the retrenchment of those and will shut more than 100 outlets, tors’ lower spending.) that online sales have dramatically national firms will become very bad including its Times Square location. Now the problem is clearly much changed the sporting-goods industry news for landlords and for a vital ● Rents are weakening in Manhattan, broader. Macy’s executives on a recent as well. sector of the economy. with 10 of 17 districts tracked by the conference call offered very little in the The question is whether some sort Real Estate Board of New York being way of optimism, noting that store of threshold has been reached. Since GREG DAVID blogs regularly at marked down. REBNY warns of more traffic was slipping and that to match the national economy is expanding, CrainsNewYork.com.
As NY reclaims its waterfront, problems loom under the surface
New funding method would offset Mother Nature’s ravages BY ROLAND LEWIS
onflict at the rivals any other in the world, Island, and the East River waterfront: It’s an we have not been realistic edge of Rainey Park near age-old state of about the upkeep required for Ravenswood Houses in affairs, with mod- challenging natural condi- western Queens both col- Cern real estate wars replacing tions. We are paying too little, lapsed into the water, leav- yesterday’s military skirmish- partly because the mainte- ing residents of all those MONETIZE ME: The city should use increased property taxes from projects es and labor-management nance required for piers, communities with holes on like this one in Williamsburg to pay for shoreline maintenance. clashes. Do tall buildings bulkheads and waterfront their waterfronts. belong in Brooklyn Bridge access is literally hidden A handy solution is Park and at the South Street below the surface. already in place. The could be employed here in park, Pier 55. His 20-year Seaport? Do we need a new To continue to use and Bloomberg administration New York City. commitment to pay for performance space in Hudson enjoy our magnificent water- financed the No. 7 train The old maxim “an maintenance is generous, but River Park? front, we must confront extension through the ounce of prevention is after that, who will foot the Whichever side you take nature, and we must tackle increased property taxes it worth a pound of cure” is bill when the river takes on these issues, you’re miss- the challenges equitably. will generate. The de Blasio true for all infrastructure, its toll? ing the real fight: Man versus While tony neighborhoods administration has proposed but especially at the water- The bottom line is we Nature. in downtown Brooklyn and a similar strategy to fund the front. Millions spent today must acknowledge nature’s The waterfront can be a on Manhattan’s West Side BQX streetcar. Across the will save hundreds of mil- extraordinary power as we challenging and even hostile can afford to cross-subsi- city, waterfront develop- lions tomorrow and provide enjoy this great harbor of environment. Currents flow- dize their waterfront parks ment is resulting in massive new opportunities for ours. We have to be realistic ing through our tidal estuary with luxury development, increases in property values. enjoyment and recreation at about what it takes to main- eventually erode most any- this is not the case in many Let’s use a small portion of the water’s edge. We’re tain our waterfront—not just thing built at the water’s edge. poor and working-class the new tax revenue to pro- seeing that play out right where luxury condominiums Even so, New Yorkers are communities. Deferred vide for upkeep of the shore- now at Hudson River Park’s can help foot the bill, but also flocking to the waterways for maintenance is common in line—a dedicated waterfront Pier 40, where the electricity in places with few resources— kayaking, oyster cultivation, under-resourced areas, maintenance fund to be used to the cathodic protection making our harbor a shared new ferry service, environ- exacerbating inequity at the for shoreline parks. system was disconnected in resource for all. mental education and much water’s edge. Commonly called “tax incre- the 1970s to save money. The more. At the same time, our This is not an academic ment financing,” or TIF, this resulting corrosion will cost Roland Lewis is president and huge, natural harbor remains point. In recent memory, a method of capturing a small more than $100 million to CEO of the Waterfront Alliance, a vital hub of commerce and kayak dock in Harlem sank slice of the wealth created by repair. That cautionary tale a coalition of more than 900 employment for the region. into the Hudson, and increased development for should inform the debate organizations that advocates for And yet, as we develop a Cromwell Recreational Pier dedicated purposes has been upriver about Barry Diller’s the region’s waterways and
BUCK ENNIS 21st-century waterfront that in Tompkinsville, Staten used from coast to coast and proposed addition to the shoreline.
10 | CRAIN’S NEW YORK BUSINESS | MAY 23, 2016 20160523-NEWS--0010,0011-NAT-CCI-CN_-- 5/20/2016 3:07 PM Page 2
wpbid.com/smartmove VIEWPOINTS
Cheaters should not park for free Readers sound off on taxes, genocide
RE “FREE PARKING: It isn’t 1948, New York has not worth the stress, the had a single presidential hazards and the wasted nominee.” time” (editorial, May In 1968, Richard 16): The people truly Nixon ran for presi- taking advantage of free dent as a resident of DOWNTOWN WHITE PLAINS street parking are the New York. many thousands of New STEVEN A. KING Yorkers who register Philadelphia A SMART MOVE their cars elsewhere, in violation of Section 250 ERROR COMPOUNDED FOR YOUR BUSINESS of the state’s motor I am disgusted by the vehicle code. genocide-denialist • 25 miles from NYC While many of us advertisement pub- • Easy walk to Metro-North & only 35 minutes to Grand Central adhere to stricter New lished April 18. And I • Class A rents in the mid-$30s sf; Class B’s in the mid-$20s York emission standards can’t believe that you • Top 100 Best Places to Live and pay New York reg- defended this ad, • Over 2,000 new housing units currently in development istration fees, the city’s placed by Turkish hate • Vibrant restaurant & nightlife scene auto use tax, sales tax on groups, on the grounds car purchases, etc., 25% of the First Want to cut your NYC rent in half? Contact Kevin Nunn, Executive Director, White Plains Business Improvement District, to 30% of the city’s car Amendment. at 914.328.5166 (Ext. 5) or [email protected] or visit wpbid.com/smartmove for more information. owners openly cheat I could expand on their neighbors by regis- that, but in the interest tering in other states. of not invoking
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B < FEAE;E+E+EE E E E3773>, GO TO WWW.CRAINSNEWYORK.COM/LIST 0 + -- , + 12 0- ; - ; < - + E-22 Y CRAIN’S LIST + R MS OR AN * + + + * 3824 UNTING FI * + - OF TOP 25 ACCO 6736 * 94 - 4 +- ; ; -- 1 53 3:2 +- THE FULL LIST (AV 6IQE 8QA8 +- . / + +, + 3:7 53 :2 6:56 7 - + + FOR * - 53 3?24 , , + - - ?24 53 A 682 * 6736 829 3658 + * 3624 53 3529- 57 3>24 0 + - * ++ * - ;0 + 6724 52 * mong the many things hang their coats and use the bathrooms. expansion plan the Frick envisioned all - 57 >29 3=53 - 1 , + * < 6 0 2 5 7 =24 7 0 * - , - 24 - + - 3724 53 3329 >7 6735 - 3 2 * 3=24 + 5 3 6735 662 +- - < res er*ve d. + Further + duplication without that make New York City Modern wheelchairs cannot fit through those years ago. 0- 57 2 -* < 9@ D - + ights + , C4 < * + 6735 632; E;013 - Crain Communications Inc. All r ISTS B York Business. © 2 . FECrainA'sE;E+E New +EE LIST, GO TO WWW.CRAINSNEWYORK.COM/L great are its museums. the doors. The museum’s thoughtfully updated Reprinted E-22 with permission from permission is prohibited. Visit www.crainsnewyork.coG FIRm.MS #NB OR13 AN035Y CRAIN’S TOP 25 ACCOUNTIN FOR THE FULL LIST OF More than 100 of them, Decades ago, museum officials and designed proposal, which requires each with its own bought and demolished three adjacent both a zoning exception and landmarks character, enhance the quality of life for buildings to expand their Fifth Avenue commission approval, is to replace the ved. Further duplication without Crain Communications Inc. All rights reser A . © 2013 Crain's New York Business residents and keep tourism dollars institution and connect it to the Frick private garden with a public one on the permission from Reprinted with permission is prohibited. Visit www.crainsnewyork.com. #NB13035 flowing into locals’ pockets. Art Reference Library. They couldn’t roof of a new addition. The neighbors’ enforce the law. If noth- publisher’s defense of Among the many things that make afford to do the project then, so they kvetching, boiled down, is that they will rights reserved. Further duplication without the city infuriating are its kvetchers. created a splendid private garden on the lose their view of a closed garden. We usiness. © 2013 Crain Communications Inc. All Crain's New York B permission from Visit www.crainsnewyork.com. #NB13035 Reprinted with permission is prohibited. These are the folks who react to side with the other 8.3 million New change by asking, “What’s in it for The public Yorkers and 55 million tourists who me?” They bemoan any idea that would get a garden they can visit—and might inconvenience them. benefits offset a vastly superior “house museum” Which brings us to the Frick the lost views of experience, too. Collection, the magnificent little art The Frick could build on its property museum housed in the former a privileged few without a zoning action, but the current For more information contact ing else, it would be a that mistake made it Hard Copies residence of Gilded Age industrialist rules demand a tall, thin building that’s Plaques & Eprints Frames Krista Bora, Reprint Account Executive revenue-raising meas- much worse. (Digital Reprints) [email protected] • tel 212.210.0750 ure that doesn’t involve N. JAMGOCHIAN even one new tax or fee. HARRY MALLON CULTURE, FREE AND Manhattan CONVENIENT Re Heather Lubov’s op- FIX PROPERTY TAXES ed “Culture in New York Greg David wrote in his shouldn’t be a schlep” May 9 column that (April 25): Nobody has “apartment renters to schlep—or spend a don’t see a tax bill—they penny—to take advan- blame their landlords for tage of the best New Accelerate what they pay.” Why York City has to offer. not require landlords to In addition to the break out a line item for wonderful cultural your career. taxes in their rent bills? offerings in our parks, That way, renters would New Yorkers in every see how much of their neighborhood have Earn an Executive MBA at Hofstra University’s rent goes for taxes. After access to free world- Frank G. Zarb School of Business all, utilities break out class entertainment, taxes, as do retail busi- music, cinema, art and Hofstra’s Executive MBA program is designed to give mid-level, highly motivated nesses from fast-food culture, as well as professionals from diverse industry backgrounds the opportunity to earn an EMBA chains to clothing stimulating conversa- in just 18 months. stores. Why should tion, all year long in Our EMBA program has several distinctive characteristics: landlords be different? their community • Nationally ranked university with more than 125,000 alumni in all 50 states and more JEFF BOGART libraries. In Queens, than 100 countries library-goers are NIXON A NEW YORKER • Cohort-based model that facilitates peer networking invited to choose from • Personalized instruction that allows dynamic interaction among students and faculty In his op-ed “Once a more than a thousand • Rigorous curriculum, including a 10-day global immersion experience kingmaker, New York offerings every week! • Convenient Saturday classes taught by diverse and accomplished faculty returns to political rele- DENNIS M. WALCOTT • Long Island’s only EMBA program vance” (April 18), Joshua President and CEO Take your professional career to the next level at the Spivak states, “Since Queens Library Frank G. Zarb School of Business.
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of U.S. Markets-Tri State SM at BNY Mellon Wealth “It can sometimes be HARMFUL DONOR MISTAKES Find your way up. Management. a bit tough having this conversation,” Hawkins Mistakes can also be made by the prospective Call (917) 322-5245 or visit Findyourwayup.com/WealthNY to learn Meister noted that the said. “Yes, there is a way donors of funds, but it’s the beneficiaries who newly wealthy have to deal with myriad issues, to support family and suffer. Failing to plan for the disposition of an more about how we can help you plan for your family’s future. including current lifestyle needs, tax planning, other folks, but also estate is an unfortunately common scenario, with possible wealth-transfer events to next of kin, mechanisms to deflect the late artist Prince being a recent example. and—among the extremely fortunate—a desire to them. You need to create give away excess money to favorite causes. good habits out of the Prince, who died intestate last month at the age of ga t e .” 57, reportedly had a litany of financial problems over Without due diligence in financial matters or the years, as well as a largely illiquid, unprotected proper planning, those with new fortunes can be It’s not always easy for an adviser to help create estate valued at more than $300 million. Prince’s in for a heap of financial hurt. those habits, however. heirs, through no fault of their own, may be subject to an enormous tax burden and required to pay “What financial advisers do is develop a plan to “When the vultures start to come out, it’s hard money they don’t have, in order to acquire an see what you need to live on, how much extra to say no because you feel blessed to have inheritance that’s greatly reduced in value. capital is left over, and what the future might received so much money,” Meister said. “It can be look like 20 or 30 years down the road,” Meister especially hard for some newly wealthy athletes, “Just to make tax payments, his heirs either said. Among many options, the newly wealthy who may feel a level of guilt for having left poverty will have to sell his catalog of music at a severe have unique investment options, including the behind when their friends have not.” discount or come up with a deal with the IRS,” said possibility of investing in riskier assets that can Jared Finkelstein, president of Manhattan-based pay off well, she said. FINANCIAL ASSURANCES Inspired Wealth Strategies.
“Thus, the rich can get richer,” Meister said. The newly divorced or widowed also may also find Charitable organizations may also be victimized themselves in charge of a fortune and in need of by poor donor planning. Prince was said to be a But not always. protecting this wealth. devoted member of the Jehovah’s Witness church, and it’s not unreasonable to assume he would have COPING WITH GOOD FORTUNE “I just had a client getting liked to contribute a portion of his vast wealth to divorced who will receive the organization. Now, that may be unlikely. The stories of lottery winners who wind up a large settlement,” said penniless or deeply in debt are legion, and heirs Peter Maltin, principal A similar situation occurred with the 2014 death to wealth often are no better off. According to at Maltin Wealth of actor Philip Seymour Hoffman at the age of 46, wealth consultancy Williams Group, 70% percent Management, in Paramus, and with a $35 million estate largely unprotected of wealthy families lose their wealth by the second N.J. “She had no planning from taxes. The actor’s financial support for generation, and 90% by the third. in the past, was never community theater, a personal passion of his, involved in her husband’s ended at his death because he hadn’t provided a Athletes may be among the most infamous for finances, and didn’t know means of continuing that support after death. bankruptcy, including Mike Tyson, Lenny Dykstra, what this money means.” Johnny Unitas and Dorothy Hamill. According to “The biggest mistake most people make regarding Sports Illustrated research, 78% of NFL players Maltin noted that the divorcée in this case not only their donation plans is not reducing the plan to are under financial stress or file for bankruptcy needed a plan but also her own adviser. Typically, writing—forming a trust or foundation, or writing only two years following retirement. Sixty percent in a divorce situation, both spouses, even one who a will,” said Robert E. Boggio, a Miami-based tax of former NBA players are broke within five years may not have had an active role in how money was accountant with clients in New York. “Their second of retiring. invested during the marriage, will seek continuity biggest mistake is failing to let others know of with the existing adviser. Later, it’s not uncommon their long-term donation plans.” Newly signed pros are particularly vulnerable, for divorced or widowed spouses to find new according to Drew Hawkins, managing director at financial advisers with whom they may feel more In these and other situations, wealth managers—if Morgan Stanley and head of the company’s global comfortable. In the case of divorce, an immediate they’re allowed to have a voice—face a Herculean sports and entertainment division, launched in 2014. change in adviser may be necessary to avoid challenge: reining in the short-sighted and often City National Wealth Planning conflicts of interest. quixotic impulses of their clients. CNB MEMBER FDIC “Here, you’re often dealing with young people who have very little sophistication with money, Wealth managers and advisers, tasked with “Financial advisers’ favorite word has to be ‘no,’ ” but have very sophisticated and complex issues advising the unschooled and disciplining the Finkelstein said. Non-deposit Investment Products: n are not FDIC insured n are not Bank guaranteed n may lose value Past performance is not an indication of future results. ©2016 City National Bank
Crain's Wealth Management_MECH.indd 2 5/19/16 5:27 PM Your family. Your legacy.
Building wealth today and sustaining it for future generations can be challenging. Effective investment management should be integrated with strategic tax and estate planning, philanthropy and family culture.
At City National, we’ll help you with the complexities of wealth planning so you can more fully enjoy your version of the good life. We’re with you every step of the way as you grow your wealth, enjoy it with your family and build a lasting legacy.
Find your way up.SM Call (917) 322-5245 or visit Findyourwayup.com/WealthNY to learn more about how we can help you plan for your family’s future.
City National Wealth Planning CNB MEMBER FDIC
Non-deposit Investment Products: n are not FDIC insured n are not Bank guaranteed n may lose value Past performance is not an indication of future results. ©2016 City National Bank 20160523-NEWS--0014-NAT-CCI-CN_-- 5/20/2016 2:45 PM Page 1
THE LIST NEW YORK’S LARGEST PUBLIC COMPANIES FEATURING: The fragrance maker whose secret sauce is inside thousands of perfumes P. 21
IN BRIEF Viacom’s Larry Fink Trump’s got Atlas Air Oprah Fairway biggest issue has the bona nothing on teams up weighs in tries to S I is not Sumner fides to lead his friend with on Weight find its N N E Redstone the Treasury Steven Roth Amazon Watchers way K C
U P. 16 P. 17 P. 18 P. 19 P. 20
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14 | CRAIN’S NEW YORK BUSINESS | MAY 23, 2016 20160523-NEWS--0015-NAT-CCI-CN_-- 5/19/2016 5:55 PM Page 1
THE LIST NY AREA’S LARGEST PUBLICLY HELD COMPANIES Ranked by annual revenue
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# $ %&'& #' '$ ()!""* !+ , !" &&& -./ & $ % 333 # 3$ 4 + ! +) , !, & .+ & 01"2+ !+,!" 3 ' 5 !!"# $ %& 3 # $ 4 + ! +) , !, '' 6 ! ! 2*1!" $ % 78/ 3 3 !"& $ % #&$ 5"1*, + : =>! 9!+: ;+: " 3 <"!" 1:*!, &&& & $ $ ./ & "'! &&$ % '& '$ (<+!! + : =: + : .+ & 1" !" <+2 1:*!, ' () /?( &' ''# 3 $ % '$ 7 ,*+ ! No. 6 .+ ") =!" Is MetLife too big to .?. 3 # 3$ % 3 $ 4: + : <+2 fail? The nation’s largest & :, @ )) ;+: .*!+, && 11, !!" 1:*!, life insurer doesn’t think so, and recently a feder- * $ + 76 && & #!" 3$ % &'$ 7 ,*+ ! & A+ ' + 2!" 3 al judge agreed. In a decision that will likely ,$ - $ .;B & ' #"' # $ % 3 #' $ 7 ,*+ ! be appealed to the U.S. & 8+: + - & 1*: +)!" 3'3 Supreme Court, Judge . .4? & &!!# $ % '$ .+"+!* !+), Rosemary Collyer ruled ?+, 3 : & 1> !" & that the federal govern- / /;C ' &3 3 '&'! $ %333 &$ .+"+!* !+), ment was wrong to clas- 6+))1 2 @ )) ;+: C ) - & "!!" ' sify MetLife as “systemi- +$, 0 + 6 '! $ % ' ' $ !* , cally important” and A, ' 2):"+ ,+!,!" ' subject to greater regula- 0$1 / & 3 "!'" $ % & #& &$ !* , tion. Stay tuned. ' 8+:+D "2+ ,+ )D!" ' * 23 E. 3 &&& 3$ % $ 4 + ! +) , !, ,D ' +" !+ 1,,!" 3' 4516- 1 -3 49E ' & !'!" $ %' #'3$ ? + " + : !=!" ": + 4 7 (AE 3'3 ' !! # '$ %' # $ ? + " ": + 9 ( " A+ 5 "+ !" + : ) , !, 3' 18 / 33 ""' &$ %& '$ F1+" ,, A 3 "+!D, !!" & 49$ (; & &&' ! $ %3 $ 7 ,*+ ! 3' G 2 & +),!" 4 7 :$ (A5 3 ' '" #$ %'33 $ 5+<) ) , + : No. 17 5)*"<*, 5 !) "+ !+<)!" )!""* !+ , Macy’s earnings and stock price have fallen *$ ' &3 #& &$ % H" )*" + + : +)*" *" .+ +)!+!" 1:*!, more than 50% since last summer as Amazon gob- %$6 1 0; :: 8/ 3 3 # #3$ % $ .+"+!* !+), bles up online orders and 3 .+ 3 <",!" rival brick-and-mortar $ 6$ $9 5G & & $ %'3 $ @+) + : <+*D + :, retailers race to the bot- .+ !)2+1+)") !" & tom by offering ever big- %/ ) <5 =/ $$ 8C 3 &'3 #&'& 3$ % ' # $ 8+ 2 ger discounts. How Macy’s G <D ' < D")) !" CEO Terry Lundgren will 2 7?. & 3 #" $ %3 H" 8* ): 2 1+ manage his way out of & & 4 = )1!" &'& this two-sided squeeze is anyone’s guess. > + 9/5 3 #&& $ % $ : , 2 +2 ! , 3& /+: , " !"2*1!" &3 %0 58 & 3 !! # $ %3 $ ? + " + : A, : !<,!1+ !" ": + (5 G &# 3$ % $ @): 2 !"1+ D & /+: , ),!" & 78 ' ! &$ % $ 4 )" 1:*! + : 8+:+D +!"!" !+<) ) , No. 28 The trial and travails of ( //5 3 !' 3$ % #$ 7 ,*+ ! Viacom’s nonagenarian ""!!" Chairman Sumner $,, 2, ?F 3 3 ##& '$ % # $ ?)! ! + : 2+, * ) D Redstone have made for 3 7 2 .)+! ! : , !" such riveting reading that 4 $ 1 0$ 5( @ ' & # $ % # '$ =+ it’s easy to forget the 4+ A 8* 8): (+ ! - & !2 + !" & owner of MTV, Comedy %, % %1, 888 ' '' ''' ' #$ %'3 $ @*,+, + : " Central and other cable G <D B - &' <:<++ :<D :!" =* , 2, channels saw operating income slip by 24% in ( , <$ GBC 3 !' $ % '& # $ 7 ,*+ ! 2015, as people cut the /+: , )*!+: +!" cord and movie studios
BUCK ENNIS CONTINUED ON PAGE 16 flop.
MAY 23, 2016 | CRAIN’S NEW YORK BUSINESS | 15 20160523-NEWS--0016,0017-NAT-CCI-CN_-- 5/19/2016 5:55 PM Page 1
AGENDA
%)"( "'2"#! $#" " #" 1% " #" 1% "(&'%1"(!%2# %" #!$"12 '%2&1!# 0&' ! #"& 2" ! #"& 2" !$ #1&2%!0 45:5 # % & ' #% 701896179-<0>51 -89 7<912,3./, A;-5/.35/536 , # % &' % 701896179 -./0112,3./, 034-536 6-7-:16179 !"#$$% ' &' # % &' ' % -9-=.35188>7: 71 ;0<381;-7< -<=536 No. 34 ($ )# * +#" ,$ ' ' % & % 1-;9@-7<A1-B94-><8 >?9@0112,3./, 1;536=-7>18536 '' CEO Larry Fink’s name is tossed around as a -#" ./# ' & # % &' # % 1<>5-;-7<@38=>9-; B.41-3-<1;0>;;1, ' @17.485@1>7536 1CB>=6179 potential Treasury secre- tary in a Hillary Clinton * , $ -+%$ ' % & ' 7+6 366B7>5-9>37 administration. The @>.<0112,3./, ; 536536 8489168 Crain’s Hall of Famer has the bona fides: ! 0 .#"1# ( #"2"$# 3" 2 ' ' % & #% ;159.>5-7<:-8B9>;>94 BlackRock’s $4.5 tril- -./;-D-12-./ =81:536 lion in assets under $$ " E % &' % 78B.-751 management make it the >A1.94912,3./, -88B.-79536 world’s largest money 4# 5$ , F ' ' # %& ''% 1<>5-;1CB>=6179-7< manager. It helped Uncle 15937 .>01.-7/;>7-/18 ' A<536 8B==;>18 Sam make money off the ' junk mortgage-related 6$ #","+ ' ' & # '% & # % -4617983;B9>378 assets it seized from B.5@-819B.5@-81, 6-891.5-.<536 Bear Stearns and AIG. ,#%## ,"2 & # % & % >3915@73;3:4 3..>801B66>9 51;:171536 7#8$ ,"2 G ' ' ' # % &' 7+6 BA;>8@>7: >H9@0112,3./, 712853.=536 !- ,"2 ' %& ' # '% ==-.1; -<>8370112,3./, =0@536 ' 99: , ' % &' # % >7-75>-;81.0>518 G189 9@912,3./, //.536 :2/ * "# ,"2 # % & % ==-.1; -<>8370112,3./, .-;=@;-B.17536 No. 55 #"2 0 3" 2 ; , 2#$ ' ' #% &'' ' % <01.9>8>7:-:175>18 Leonard Riggio became @>.<0112,3./, >791.=BA;>5536 ' perhaps the most suc- *5#" # % &' #'% @31893.18 cessful bookseller in his- G '9@912,3./, ?339;35/1. >75536 ' tory when he took over -#$$ ,"2 % & 7+6 19.3;1B6 the Barnes & Noble >H9@0112,3./, @188536 store on Fifth Avenue in ,0#1$ .$ # $ ,"2 & # %& ' ' % -A;191;10>8>37-7< 1971 and transformed 912-.901 19@=-:1, ' 5-A;10>8>37536 91;15366B7>5-9>378 the retailer into a nation- ' wide chain. Alas, e-read- <# 4 # "8$ ,"2 # % & # % >.;>71 ers ravaged bookstores B1178;-D-3.9@37: 8;-7<>94, I19A;B1536 across the country, and last month Riggio said 1 !"+ $ '% &' 7+6 1-;9@-7<A1-B94-><8 he will retire in @>.<0112,3./, -037536=-74536 September but remain 4"#$ 70# & '%& 7+6 33/893.18 involved as a sharehold- >?9@0112,3./, A-.718-7<73A;1>75536 ' er and director. -:3 3" 2 ' & % & 7+6 3B81@3;<=.3
BUCK ENNIS, NEWS BLOOMBERG to invest in them.
16 | CRAIN’S NEW YORK BUSINESS | MAY 23, 2016 20160523-NEWS--0016,0017-NAT-CCI-CN_-- 5/19/2016 5:56 PM Page 2
NY AREA’S LARGEST PUBLICLY HELD COMPANIES
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,= 3" 2 ' ''& # % & % 3661.5>-;-7< G' 7<912,3./, 5>9536 5378B61.J7-751 ' ?@ F, ' % & ' #% 7
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Atlanta | Baltimore | Boston | New Milford | New York | Philadelphia BUCK ENNIS
MAY 23, 2016 | CRAIN’S NEW YORK BUSINESS | 17 20160523-NEWS--0018,0019-NAT-CCI-CN_-- 5/19/2016 5:56 PM Page 1
THE LIST
%)"( "'2"#! $#" " #" 1% " #" 1% "(&'%1"(!%2# %" #!$"12 '%2&1!# 0&' ! #"& 2" ! #"& 2" !$ #1&2%!0 (88 "XaY ' ' '% & # % 0G0.>0>7>/0:>2.< F0>/;?0>/0160F?3/0523.>- ' 3//;4: >0163;0> & ((( YYEaIU &aXdY ' #% &' # % DD2105 060./?600@-418- A 333;4: 3XacRbcEa 6IEUch %SWEWGI "XaY ' # % & ' .+: 0250>/2/03.60>/:0./ No. 91 218600@-418- .1G;;4: /1=>/> Earlier this year, it seemed that Revlon WWEUh "EYScEU 2EWEQIVIWc (WG - '% &' .+: 0250>/2/03.60>/:0./ 39/?600@-418- 2..257;4: /1=>/ chairman Ron Perelman was ready to sell the firm; 6"7 "EYScEU "XaY # % & .+: .60>/:0./B2.83.A he said he was exploring '218600@-418- 1;>;2D3/25;4: 2.<B148012A0 “strategic alternatives” for a company that has @IaSbT WEUhcSGb (WG ' #'% & # % 3>8:2.2A0:0./ undergone numerous 'F2>?3.A/4.56<01>07 3/7 6013>8;4: >0163;0> makeovers and manage- ment changes since he &aSPPXW "XaY # % & ' .+: D0;325/7B=35<3.A bought it 31 years ago. 3G/?600@-418- A13GG4.;41D;4: D14<=;/>>7>/0:> Instead, Revlon appointed a new chief executive. 6IeUXW (WG ' '% & # % 025/?2.<B02=/723<> Still, the company hasn’t .00@-41852E20@-418-' 10654.;4: publicly called off its 3If CXaT "XVVdWSch !EWGXaY (WG - ' # % &' .+: 2.83.A quest for “alternatives.” 0113;860F0>/B=17- :7.7;B;4: '' 7hbcIVEg (WG -, %& .+: 4:D=/01>2.<1052/0< 21B41218136041/F2>?3.A/4.- >7>/0:29;4: D14<=;/> cUEb Sa AXaUHfSHI 'XUHSWQb (WG FF ' # % & % 3153.0 F0>/;?0>/0160=1;?2>0- 2/52>231;4: )XRW ASUIh 7XWb (WG F ' # %& # % =B53>?3.A 3601/4B480. @3507;4: ' 2SWIaEUb 8IGRWXUXQSIb (WG , #' % & # % 3.0125D14<=;/> ?31<600@-418- :3.0125>/0;?;4: "RSUHaIWqb 5UEGI 6IcESU 7cXaIb (WG ' % & #% DD2105>/410> 52E213600;2=;=> ' ;?35<10.>D52;0;4: No. 94 0SVGX 6IEUch "XaY #'' % & ' # % 0250>/2/03.60>/:0./ Atlas Air got a huge 0@7<021842<0@7<0218- 83:;41025/7;4: /1=>/> boost in early May when ' ' Amazon agreed to lease 71 &aIIW 6IEUch "XaY ' #'% & ' ' % 0250>/2/03.60>/:0./ 20 767s from the cargo ' 093.A/4.600@-418- >5A100.;4: /1=>/> carrier. Amazon also got warrants to acquire up 2EG`dEaSI (WPaEbcadGcdaI "X # % & .+: 31D41/>0163;0> to 30% of Atlas Air’s F/?/0@-418- :2;C=2130;4:+:3; shares over the next #dW !aEHbcaIIc "XaY # % & ' % .G41:2/34.>0163;0> seven years and can 218@27?41/355> <.B;4: take a seat on the carri- 7GRXUEbcSG "XaY ' #'%& ' # % =B53>?3.A er’s board once its stake 142<@270@-418- >;?452>/3;;4: reaches 10%. Looks like Atlas and Amazon will be F ' ' #' % & ' # % D41/>0./01/23.:0./ 0..52E20@-418- :>A.0/@418>;4: 2.<:0<32 besties for a while. F ' # % & ' # % .60>/:0./B2.83.A 'F2>?3.A/4.56<01>07 3/7 8;A;4: 2.<B148012A0 ' % &' # ' % 050;4::=.3;2/34.> 142</0@218 3/410> 4=./23.60D13.AH05< >?4D13/0;4: !" # $ - ' % %& # % =B53>?3.A 3A?/?600@-418- .7/;4;4: &'D $DFD ' ' %( %& % 3.2.;325>0163;0> No. 110 39/?600@-418- =>0/12<0;4: ' After 13 straight quarters ) * D F ' #% & ' .+: <601/3>3.A2A0.;30> '093.A/4.600@-418-' 4=/G14./:0<32;4: of red ink, teen retailer Aéropostale filed for +i D F ' ' ' ( % & .+: DD2105>/410> bankruptcy earlier this F '/?/0@-418- 2014D4>/250;4: month. The company 9 * $D FF F ' ' , % & ' .+: 05D>=DD57>0163;0> plans to close 113 of its 39/?600@-418- 645/;4: ' 739 stores in the U.S. -.D +$FD ' ' ,% % & ' .+: .>=12.;0 and all 41 in Canada. ''4=/?142<@27F?3/0523.>- =.3601>252:013;2.;4: The retailer has engaged . D '' , #'% & # % 44/@021 in a courtroom fight with 21.0//604.A>52.< 3/7-' >/060:2<<0.;4: private-equity firm )F/01** D D DD$ J ( ' % & % .60>/:0./2<63;0 Sycamore Partners, F/?/0@-418- 4E;2D;4: which controls both its 23$ 4 4 F , # '% & #% 0250>/2/03.60>/:0./ largest lender and its '093.A/4.600@-418- B139:41;4: /1=>/> largest supplier. '' Aéropostale argues that 9 D$ / F #''% & % 3/2:3.2.<.=/13/34.25 Sycamore drove it into 21:4. 02<4@56<0;2=;=> ' 63/2:3.>?4DD0;4: >=DD50:0./> bankruptcy, a charge the
AP PHOTO, BUCK ENNIS PE firm denies.
18 | CRAIN’S NEW YORK BUSINESS | MAY 23, 2016 20160523-NEWS--0018,0019-NAT-CCI-CN_-- 5/19/2016 5:56 PM Page 2
NY AREA’S LARGEST PUBLICLY HELD COMPANIES
%)"( "'2"#! $#" " #" 1% " #" 1% "(&'%1"(!%2# %" #!$"12 '%2&1!# 0&' ! #"& 2" ! #"& 2" !$ #1&2%!0 )DbH 6XDGH !W ' ' # % & % ;;/4,. /45@,,123452 5/9,7;/=,:36 #dH`FW`H 4D`bVH`a 'VF # % &' % ,:C4<9<,7 -=9,123452 ,@,4:34,:36 ' $W`b`Haa 'VdHabUHVb %`WcX #%& % <-/-: ' # % & -+6 CB.<7?<-8 Weight Watchers last '
CONTINUED ON PAGE 20
marcumllp.com/crains
MAY 23, 2016 | CRAIN’S NEW YORK BUSINESS | 19 20160523-NEWS--0020-NAT-CCI-CN_-- 5/19/2016 5:57 PM Page 1
THE LIST NY AREA’S LARGEST PUBLICLY HELD COMPANIES
%)"( "'2"#! $#" " #" 1% " #" 1% "(&'%1"(!%2# %" #!$"12 '%2&1!# 0&' ! #"& 2" ! #"& 2" !$ #1&2%!0 3dH`aHDa 6QRXQWTGRVP %`WcX 'VF ' #%& ' -+6 ?<;;<-8 COMPANY RANK COMPANY RANK COMPANY RANK COMPANY RANK COMPANY RANK 1-800-Flowers.com Inc.------125 Cablevision Systems Corp. ------52 IDT Corp. ------105 MSG Networks Inc.------103 Signature Bank ------122 ABM Industries Inc. ------59 CBS Corp. ------26 International Business Machines ------4 Nasdaq Inc. ------73 Sirius XM Holdings Inc.------63 AEP Industries Inc. ------123 Celgene Corp.------44 International Flavors & Fragrances----76 National General Holdings Corp. ------82 SL Green Realty Corp.------99 Aéropostale Inc. ------110S Children’s Place Retail Stores Inc. ----97 Interpublic Group of Companies ------49 New Media Investment Group Inc. --120 Sotheby’s ------135 Alcoa Inc.------20 Chimera Investment Corp. ------140 Investors Bancorp Inc.------142 New Residential Investment Corp.---147 Standard Motor Products Inc.------133 Alleghany Corp.------58 CIT Group Inc.------69 ITT Corp.------84 New York & Company Inc.------136 Steel Partners Holdings ------131 AMC Networks Inc.------80 Citigroup Inc. ------3 JetBlue Airways Corp.------53 New York Community Bancorp Inc.----92 Steve Madden ------113 American Express Co. ------14 Coach Inc.------66 John Wiley & Sons Inc. ------95 New York Times Co.------107 Systemax Inc.------93 American International Group Inc.------8 Cognizant Technology Solutions ------31 JPMorgan Chase & Co.------2 News Corp. ------45 Take-Two Interactive Software Inc.---126 AmTrust Financial Services Inc.------61 Colgate-Palmolive Co.------22 Kate Spade & Co. ------117 Northstar Realty Finance Corp. ------86 TAL International Group Inc.------148 Annaly Capital Management Inc.------87 Consolidated Edison Inc. ------30 KCG Holdings Inc. ------104 Och-Ziff Capital Management Grp.--114 Tiffany & Co. ------67 Apollo Global Management ------129 Coty Inc. ------64 Kimco Realty Corp. ------98 Omnicom Group Inc. ------25 Time Inc.------75 Ares Capital Corp.------130 Dun & Bradstreet Corp. ------101 KKR & Co. ------47 Oppenheimer Holdings Inc. ------138 Time Warner Cable Inc.------19 Ascena Retail Group Inc. ------60 E*Trade Financial Corp.------108 L-3 Communications Holdings Inc. ---39 Outfront Media Inc. ------109 Time Warner Inc.------16 Assurant Inc.------41 Empire State Realty OP ------149 Leucadia National Corp. ------33 Overseas Shipholding Group Inc.----134 Travelers Cos. ------18 Atlas Air Worldwide Holdings Inc.------94 Empire State Realty Trust Inc. ------149 Loews Corp. ------27 Paramount Group Inc. ------146 Twenty-First Century Fox Inc. ------15 Automatic Data Processing Inc. ------36 Estée Lauder Cos.------37 Macquarie Infrastructure Co.------100 PepsiCo Inc.------7 Two Harbors Investment Corp.------132 Avon Products Inc. ------54 Evercore Partners Inc. ------118 Macy’s Inc. ------17 Pfizer Inc. ------10 Universal American Corp. ------112 Bank of New York Mellon Corp. ------23 Fairway Group Holdings Corp.------139 Madison Square Garden Co. ------128 Phibro Animal Health Corp.------144 Verint Systems Inc.------124 Barnes & Noble Inc. ------55 Foot Locker Inc.------50 Marsh & McLennan Cos.------29 Philip Morris International------5 Verisk Analytics Inc.------89 Becton Dickinson & Co.------42 Fortress Investment Group------119 MasterCard Inc. ------43 Prestige Brands Holdings Inc.------145 Verizon Communications Inc. ------1 Bed Bath & Beyond Inc. ------32 G-III Apparel Group ------85 MBIA Inc. ------143 Prospect Capital Corp. ------141 Viacom Inc. ------28 BGC Partners Inc. ------81 Goldman Sachs Group Inc.------12 McGraw Hill Financial Inc. ------57 Prudential Financial Inc.------9 Village Super Market Inc. ------106 BlackRock Inc.------34 Griffon Corp. ------90 Merck & Co. Inc.------11 Public Service Enterprise Group------40 Vitamin Shoppe Inc. ------116 Blackstone Group------62 Hain Celestial Group Inc. ------79 MetLife Inc. ------6 PVH Corp.------46 Volt Information Sciences Inc. ------111 Bristol-Myers Squibb Co. ------21 Henry Schein Inc. ------38 Minerals Technologies Inc.------96 Ralph Lauren Corp. ------48 Vornado Realty Trust ------83 Brixmor Property Group Inc. ------115 Hess Corp.------51 Moody’s Corp. ------71 RCS Capital Corp.------88 Voya Financial Inc. ------35 Broadridge Financial Solutions Inc.---78 HRG Group Inc.------56 Morgan Stanley------13 Regeneron Pharmaceuticals Inc.------68 W.P.Carey & Co. ------137 C.R. Bard Inc. ------72 IAC/InterActiveCorp.------74 MSC Industrial Direct Co.------77 Revlon Inc. ------91 Weight Watchers International Inc. --121 BUCK ENNIS CA Inc. ------65 Icahn Enterprises------24 MSCI Inc. ------127 Scholastic Corp. ------102 Xylem Inc. ------70 20 | CRAIN’S NEW YORK BUSINESS | MAY 23, 2016 20160523-NEWS--0021-NAT-CCI-CN_-- 5/19/2016 6:31 PM Page 1 TOP PUBLIC COMPANIES | TASTE MAKERS manufacturers. That means if the company wants to increase its revenue by, say, 5% a year, it needs to grow its product portfolio by 25%. To maintain a pace even close to that, IFF operates more than 30 research and production facilities, spread around the world to keep in touch with regional tastes. It has also acquired two smaller competitors in the past 18 months and begun broadening its reach into areas such as scented skin-care products. Analysts say four companies control 70% of the flavoring and fragrance business, and IFF, the only one based in the U.S., is thought to be the third largest. To help stay ahead of consumer preferences, the company spends an unusually large amount on research and development. IFF’s R&D budget last year was $250 million, equal to 8% of its $3 AROMA NOT BUILT IN A DAY: IFF’s Sofia Meltser compounds a fragrance formula at the company’s billion in annual sales, or more than twice the West 57th Street headquarters. percentage allocated by Apple—admittedly a much larger company. The company says it sur- veys 500,000 consumers around the world every year to learn about their tastes. “If you see a new barbecue-mango-flavored chip at the store, odds are pretty good they played a part in that,” said John Roberts, a armers produce more than 4 million chemical-industry analyst at UBS. As con- tons of strawberries every year, accord- sumers reduce their sugar intake, IFF is devel- WHAT ing to the United Nations; most of them oping “modulators” to heighten the sense of are gobbled up by big food manufactur- sweetness in foods. Acceptable substitutes for ers making strawberry yogurt. So what salt and monosodium glutamate are also on the are people who make strawberry ice agenda, Roberts said, as are new artificial SUCCESS Fcream, candy or scratch-and-sniff stickers sup- vanilla and citrus flavors. posed to do? More than ever, they rely on a Manhattan company called International Flavors Small universe & Fragrances Inc., one of the world’s leading pro- Most R&D work is done at an IFF lab in Union SMELLS ducers of chemicals and additives that make Beach, NJ. IFF’s New York office focuses on foods taste better, perfumes smell more alluring helping many of the leading perfume makers and clothes retain their springtime freshness long based here develop their scents. Renowned after they’ve been laundered. perfumer Frédéric Malle has said he’s an IFF LIKE Though IFF’s name is never seen in stores, client, and the company’s Instagram page fea- its technicians’ work can be found in nearly tures a photo of Brazilian model and L’Oréal 40,000 household items, and half the compa- brand ambassador Luma Grothe holding a small International Flavors & ny’s revenue comes from working with con- bottle of fragrance while wearing a white IFF Fragrances, No. 76 on our list of sumer-product giants including Procter & lab coat and stiletto heels. Gamble, Nestlé and Unilever. The company employs 70 perfume makers, publicly traded companies, is the The 126-year-old firm, No. 76 on Crain’s list and Fibig likes to say there are only as many of business you’ve never heard of of the top publicly traded companies in New these experts around the globe as astronauts. (If York, has been on a growth spurt lately, and its this sounds like a career for you, IFF recom- whose chemistry is baked into stock recently touched an all-time high of mends enrolling in a three-year scent creation 40,000 household items about $128 a share, giving it a market value of and design program in Versailles, France, where $10 billion. Prospects appear bright considering tuition is about $11,000 per year.) IFF has less than a handful of major competitors IFF is now trying to reach beyond the world of BY AARON ELSTEIN in the $28 billion flavoring and fragrance busi- household goods. It used its fragrances to help cre- ness. It is also well-positioned as consumer ate a virtual reality exhibit at last month’s Tribeca tastes shift toward natural and less-processed Film Festival called “Famous Deaths.” There, foods that tend to benefit from a flavor boost. curiosity seekers slipped into a coffin-shaped “We’re not always well-known to the pub- chamber and, through a combination of sound and lic,” Chief Executive Andreas Fibig said earlier smell, experienced what Whitney Houston’s last this year in an interview produced by accounting moments were like before she drowned in a firm PwC. “But it’s a cool business.” Beverly Hills hotel bathtub. They could also expe- While IFF’s growth strategy may center on rience a re-creation of the assassination of serving the fast-growing natural foods market, President John F. Kennedy and what promoters at least for now products sold as 100% natural called “the penetrating scent of blood, brains and make up such a small part of its business that gunpowder drilling its way into your nostrils.” the company doesn’t even appear to track The critics weren’t kind. A writer at the them, according to Swiss bank UBS. The reason Verge described the virtual reality exhibit as revenue has grown at a steady 2% clip in most “arrestingly weird,” “morally ambiguous” and years is that IFF specializes in combining natu- “potentially offensive.” IFF said: “We know full ral flavors with synthetic ingredients to make well that virtual reality placed together with new chemicals. The company is interested in scent is an emerging art form and may not be to developing chemicals produced by genetically everyone’s taste.” engineered microbes that could be described in Roberts, the UBS analyst, said it’s unlikely the U.S. as “natural,” UBS said. such artistic endeavors would generate very Because food and fashion trends come and much money for IFF. “They experiment with go, in any given year 20% of the products that lots of stuff,” he said. “Still, you never know Ⅲ BUCK ENNIS contain IFF ingredients are discontinued by when something will hit big.” MAY 23, 2016 | CRAIN’S NEW YORK BUSINESS | 21 20160523-NEWS--0022,0023-NAT-CCI-CN_-- 5/19/2016 6:32 PM Page 1 SMALL BUSINESS | HOT SAUCE MAVENS QUEEN MAJESTY: Erica Diehl blends Scotch bonnets, jalapeños, tequila and apples in her hot-selling hot sauces. n a cold rainy night in a com- Valley and Long Island are included—plus a mercial kitchen in Red Hook, store in Williamsburg, the Heatonist, staffed Brooklyn, Erica Diehl meth- with hot sauce sommeliers. LIFE’S odically put into a blender “All of a sudden, they went from ‘nobody the ingredients that have even knew they were there’ to ‘you gotta taste helped her become a hot this stuff!’” said Chip Hearn, the owner of JUST A sauce hotshot: jalapeños, Peppers.com, a Delaware-based online store, of green apples, onions, garlic, ginger, lime juice, New York’s hot sauce scenesters. Ovinegar, salt, olive oil and, finally, tequila. Then Unlike ketchup, hot sauce is a market with no she blitzed it all into a purée. dominant player: The McIlhenny Co., producer BOWL OF Over the course of an evening that would end of Tabasco, controls 17.7% of the sector, accord- after midnight, Diehl and her two part-time ing to market research firm IBISWorld, followed assistants refilled those blenders over and over by Reckitt Benckiser plc, maker of Frank’s Red again, producing the fiery flavors she sells as Hot, which has 11.8%, and Huy Fong Foods, the HABANEROS Queen Majesty Sri-racha kings, Hot Sauce. at 4.9%. Once the purview of Diehl, a 38- “THE NEWYORK SAUCES ARE The remaining year-old Buffalo two-thirds of the Texas and the South, transplant, is a CUTTING-EDGE—THEY’RE industry is made a hot sauce industry is rising star within USING INGREDIENTS THAT up of small pro- New York’s nas- ducers fighting growing in New York, cent hot sauce AREN’T NORMAL” for shelf space at fueled by a mashup of market. In 2015, farmers’ markets, barely two years specialty grocery cultures and ingredients after launching Queen Majesty, her stores and regional supermarket chains. And jalapeño/tequila/lime and Scotch bonnet/ginger while the category grew 5.3% annually from BY MATT GROSS concoctions won gold medals at the annual NYC 2010 to 2015, it is expected to expand only 3.8% Hot Sauce Expo. Now, the reggae DJ (she per- annually through 2020, reaching a value of $1.5 forms under the name Queen Majesty) is selling billion, IBISWorld reported. them at Dean & Deluca and the Whole Foods in New York’s sauces reflect the city’s culinary Gowanus, Brooklyn, slowly turning an avoca- diversity. Diehl’s Queen Majesty blends red tion into a viable business. “I’m not worried habaneros with coffee; Auria’s Malaysian about [growing] superfast,” she said. “I don’t Kitchen in Flatbush, Brooklyn, has a red chili think the hot sauce thing is a flash in the pan.” sambal that uses both dried and fermented New York City’s hot sauce scene has evolved shrimp; and High River Sauces, which launched in less than a decade from a hobbyists’ pastime in Queens before moving to Long Island, mixes into a growing local market anchored by the blood-orange juice with Trinidad moruga scor- Hot Sauce Expo, which celebrated its fourth pion peppers. year last month in Greenpoint, Brooklyn. Now, The Bronx Hot Sauce sources its serrano pep- hot sauce aficionados can count a dozen pro- pers from community gardens and developed its BUCK ENNIS ducers in the city—two dozen if the Hudson recipe with chef King Phojanakong, a Bronx High 22 | CRAIN’S NEW YORK BUSINESS | MAY 23, 2016 20160523-NEWS--0022,0023-NAT-CCI-CN_-- 5/19/2016 6:32 PM Page 2 ROYAL TREATMENT: Chef School of Science grad lauded for his cost of renting a production kitchen. King Phojanakong Thai-Filipino tapas at Kuma Inn on the It’s a common complaint: The helped develop the Bronx Hot Sauce. Lower East Side. growth in artisanal food businesses has “The New York sauces are cutting- made it difficult to rent a commercial edge—they’re using ingredients that kitchen. Abraham, chafing at the lim- aren’t normal,” Hearn said. its of her $30-an-hour facility in Making a profitable business out of Brooklyn’s old Pfizer building, said hot sauce, though, is especially tough she’s looking to open her own kitchen, in New York. Start with the climate. purchase a jar-filling machine (cost: Farms in the city and upstate produce $7,500 to $8,500) and lease the tons of peppers in summer and early kitchen to other operations when fall, but busy producers need year- she’s not using it. Queen Majesty’s round supplies to meet demand. Diehl is doing likewise, though she’ll “The first year I did this, in February be renting a larger space on the Lower I needed to make more product, and East Side rather than building her there were just no peppers to be found. own. Anywhere,” said Auria Abraham, who Another strategy is to employ a co- launched Auria’s Malaysian Kitchen in packer, as High River Sauces owner 2013 and produced 8,000 jars of hot Steve Seabury does. Though the 45- sauce last year. The peppers she bought year-old founded the company in for $2.25 a pound in August cost $6 a Queens in 2010—making him a New pound in winter. York hot sauce pioneer—he is now headquartered in Kings Park on Long Tough economics Island and has shifted production to Even in season there can be short- Endorphin Farms, a hot-sauce- ages. Last summer, Abraham said, “All focused co-packer in St. Augustine, the hot sauce people were calling each Fla. Endorphin takes deliveries of raw other, ‘Where do you get your pep- materials (peppers from Pennsylvania, pers? Where do you get your peppers?’ fruit from the South), cooks according And then you’re like, ‘Oh, I’m not to Seabury’s recipes, and bottles, saying! I’m not telling you!’” labels and ships the sauce wherever it Profit margins are already thin: A needs to go. bottle typically retails for $6 to $10 and Last year, Endorphin made 60,000 can last months. IBISWorld puts the bottles of High River Sauces. That’s a industrywide margin at 10.8%, down far cry from the 20 million bottles of from 13.8% in 2010, a consequence of Sriracha that California’s Huy Fong rising ingredient costs and increased Foods reported making in 2013, but it competition. Of the New York produc- establishes High River as one of the ers Crain’s spoke to, only the Bronx Hot biggest New York hot sauce compa- Sauce felt comfortable revealing its nies. It also leaves Seabury free to profit margin. “Roughly 20%,” said develop and market new products, co-founder John A. Crotty, an afford- organize Hot Sauce Expos (in New able-housing developer who uses a York, Arizona, California and Oregon), vacant lot in the Bronx to grow peppers and still work at his day job in music with children. marketing. The tough economics have already Diehl isn’t ready to relinquish con- taken a toll on one well-regarded pro- trol of production. “I just can’t imag- ducer. Sunny Bang Private Label, a ine it being made in Florida,” she said. probiotic, Sriracha-style sauce that She does, however, want to expand launched with a Kickstarter campaign beyond hot sauce—to mayo, maybe, or Break Away... in 2013, shut down recently, despite even potato chips. “I definitely want having found shelf space at Whole to keep it spicy, that’s for sure,” she Foods. On top of ingredient prices, said. “Even if it is potato chips, it’s Sunny Bang’s Angela Batra cited the gonna be hot.” Ⅲ and make your business better MEET THE HEAT: Steve Seabury created High River Sauces and runs Hot Sauce Expos across the country. Industries served: Financial Services . Manufacturing & Distribution . Technology 1RWIRU3URÀW . Retail . Construction . Architecture & Engineering Real Estate . Healthcare . Transportation & Shipping Media, Entertainment & Telecommunications 488 Madison Avenue, New York, NY 10022 50 Jericho Quadrangle, Jericho, NY 11753 10 Esquire Road, New City, NY 10956 www.grassicpas.com MAY 23, 2016 | CRAIN’S NEW YORK BUSINESS | 23 20160523-NEWS--0024-NAT-CCI-CN_-- 5/19/2016 7:10 PM Page 1 ENTERTAINMENT | CURBING STAR TRAILERS Using hotel rooms in lieu of trailers, especial- ly for longer than a few days, is unusual for a big-budget movie. But the film’s location man- ager, Joe Guest, acknowledged there were some distinct advantages. “We were literally filming right outside of the Andaz,” Guest said. “So the hotel was closer to the shoot than the trailers would have been.” The Andaz Wall Street also offered something priceless: freedom from the typical horde. “With these big stars like Clooney and Roberts, you have paparazzi who can be a nuisance and will crowd around a trailer and block the sidewalk,” Guest said. “But when stars are in a hotel with multiple entrances and exits, the paparazzi dis- perse. They don’t know where to wait.” Guest, who also served as location manager for The Intern and Sex and the City 2, would not disclose how much Sony paid the hotel. The Andaz Wall Street advertises room rates from QUIET ON THE SET: Money Monster $430 to $2,600 per night. Guest secured multi- director Jodie Foster with actor ple rooms for a total of 37 nights. Jack O’Connell. Even with the added convenience and securi- ty, there was one other persuasive reason for Sony to eschew doing business as usual: The city asked them to. “When the Mayor’s Office of Media and Entertainment found out that Sony would be shooting for 15 straight days in one neighborhood, we worked with them specifically to increase ow in theaters, Money Monster, local spending in the neighborhood,” Menin said. directed by Jodie Foster and star- According to the mayor’s office, Sony/TriStar, ring George Clooney and Julia in addition to the hotel room costs for the 15-day The new Roberts, was among 336 films shot downtown shoot, also spent $200,000 on loca- in New York City in 2015. What tion fees, which included building-site rental Nmade it unique for the Big Apple was that the fees and truck parking fees. In that same period, movie production camped out in a hotel—instead of the studio also shelled out more than $30,000 to multiple trailers—for weeks of preparation and hire local labor beyond the 700-member cast and then as a place for costumes, hair and makeup, crew and 2,000 actor extras. and for the actors to relax between takes. The city also tallied more than $18,000 spent shooting Sony Pictures TriStar Productions, at the urg- at 26 businesses on Beaver and Pearl streets, ing of the city, adopted several spending practices including George’s Hair Stylings, Pine Street that, in addition to the hotel rooms at the Andaz Cleaners and Wall Street Wine Merchants. Wall Street, dropped $300,000 in New Yorkers’ A final $50,000 went toward a practice paradigm wallets during the film’s 15-day location shoot. increasingly employed at film and TV shoots: The production hired local labor and patronized “walkaway lunch money.” By providing cast and Spend locally and replace star area restaurants and other businesses instead of crew with prepaid meal cards, producers guar- bringing in its own services. It is a model that the antee their patronage of area eateries. trailers with hotel rooms to Mayor’s Office of Media and Entertainment hopes “Rather than bring in a craft service company win over beleaguered other film and television productions will adopt. that does not in any way benefit the neighbor- New Yorkers “We can’t make this a mandate, but we can hood, we asked the studio to consider spending encourage studios to utilize this new paradigm,” said Julie Menin, BY ADDIE MORFOOT commissioner of media and enter- RATHER THAN BRING IN CRAFT tainment. “This model increases SERVICES,WE ASKED THE local spending in communities and is one that we can quantify.” STUDIO TO SPEND LOCALLYIN The movie, which opened May RESTAURANTS AND DELIS 13, stars Clooney as Lee Gates, a celebrity stock picker and host of the titular financial show (think Jim Cramer of locally in restaurants and delis in the neighbor- CNBC’s Mad Money), who is taken hostage on hoods that are being filmed in,” Menin said. live TV by disgruntled viewer Kyle Budwell These initiatives allowed Sony to be a good (Jack O’Connell). A tense standoff ensues as the neighbor during its downtown residency. By show’s producer, Patty Fenn (Roberts), tries to reducing the number of behemoth trailers save Gates. The climactic scenes take place out- parked on the streets, the studio lessened its side Federal Hall on Wall Street. negative impact on traffic and air quality, and The movie, with a reported budget of $30 also mitigated what New Yorkers seem to million, shot for 47 days in the city. Thirty-two despise most about Hollywood descending on days were spent at Kaufman Astoria Studios in New York: no parking. Queens, the rest in downtown Manhattan. One appreciative local business is nine-year- “I’ve always been in love with New York old Leo’s Bagels in Hanover Square, which was City, so it was an incredible experience to be among the 17 restaurants and delis that the able to direct part of this film in the heart of the Money Monster cast and crew frequented. financial district,” Foster said. “The city “A dozen crew members ate breakfast at my became one of the stars of this film and plays an place every morning for 15 days,” said owner Ⅲ ATSUSHI NISHIJIMA ATSUSHI important role in the story we were telling.” Adam Pomerantz. “That’s a lot of bagels.” 24 | CRAIN’S NEW YORK BUSINESS | MAY 23, 2016 20160523-NEWS--0025-NAT-CCI-CN_-- 5/20/20163:35PMPage1 NYC MAYOR-S OFFICE OF MEDIA AND ENTERTAINMENT CRAIN’S have benefited fromthefilmandtele announcementsfeaturing smallbusinessesthat ing six30-secondpublicservice THIS SPRING, BUSIINESSES RETURN THE FAVORSMALL part of part Grumpy, May launched 21 as onCafé PSA, enues. Thefirst hoods helpto increasetheirrev- productions intheirneighbor- explain how film andtelevision Heights/West Harlem). & Catering (Morningside Supplies (Chelsea),LeNobleLumber(LongIslandCity)andMelba’sRestaurant (multiple locationsinManhattanandBrooklyn), JamaliFloralandGarden Systems &Tailors (Bronx), BridgeCleaners (Brooklyn Navy Yard), CaféGrumpy York America’smostpopularlocationfor one- hassurpassedLosAngelesasNorth $420 millionannualfilmtaxcredit.According to New permitcoordinator FilmLA, figuresBut such don’talways appeasecommunityboardconcernsover thestate’s according to a2015 by Boston report ConsultingGroup commissionedby thecity. economy annually, billion,or21%, since2011, anincreaseofmorethan$1.5 and onallofthecity’sothermediaplatforms for thenext calendaryear. of itsown NYC network, Media, channel, NYC Life (Channel25), cast thePSAsonflagship as they arecompleted. airinginearlyJune willstart ers music, filmandcomedy. Theoth- Vulture Festival oftelevision, OPENING KEYNOTE SPEAKER: OPENING KEYNOTE costsandquality.implications for andthe upheavals care inhealth adapting to are examine howthey to providers, well asurgent-care practiceslargeandsmall,as from doctors together Crain’s isbringing In theads,businessowners The PSAswillfeature ofthefive businessesineach boroughs:Avid Waste The film and entertainment industry contributes closeto industry The film $9billionto andentertainment thelocal The mayor’s willbroad- office at theDoctor’s Offi DISRUPTION New York magazine’s the Mayor’shasbegunair- ofMediaandEntertainment Office One MedicalGroup TOM X.LEE,M.D. TOM Founder andCEO, Health Care Summit Health Care Supporting Sponsor: Supporting dustry inNew Yorkdustry starin30-secondadsmade by thecity. GIVING BACK: vision productionboominNew York City. Owners of small businesses that directly benefited from serving the entertainment in- theentertainment ofsmallbusinessesthatdirectlybenefitedOwners fromserving *PANEL 2: Surviving Health Care Reform Care Health *PANEL 1:Surviving Urgent Care Upstarts Urgent Care Medical Director & Medical Director RICHARD MOREL Vice President, President, Vice Medical Group M.D., MMM of NewYork WESTMED WESTMED ple afew examples ofhow boroughs have benefited.” is itbenefitingmy smallbusinesseswillgive community?’”Meninsaid.“These peo- jobsinNewing 130,000 York City, butwhatdoesitmeanfor my community?How happy thatthisiscreat- and boards,oneofthecommentsIhearisthat‘wearevery Julie Menin,hopesthatthePSAswillputafaceandvoice onthenumbers. hour television commissioner, pilotproduction. Thecity’smediaandentertainment bution beyond thecity’sown mediaoutlets. kept thebusinessalivehours, andhelpedusexpand.” us inbusiness.Alsothelittleboostsfrom productions rentingourspace,even afew atoncethatkept ofcoffees during theirbreaksfromfilmingandorderingabunch Care Division,WeillCare “Oftentimes whenIamspeakingwithcivicassociationsandcommunityleaders “Oftentimes “We thinkthatthismessageisacriticalone,”shesaid. Menin saidsheisalsoseekingways to give theannouncementswiderdistri- ADAM STRACHER RICHARD PARK RICHARD Cornell Physician Cornell Director, Primary Director, Primary Chief Executive Offi Organization *Additional paneliststobeconfirmed. cer, CityMD M.D. M.D. ce Essen Health Care Essen Health Offi SUMIR SAHGAL SUMIR SAHGAL Chief Medical cer, Founder, M.D. [email protected] 212-210-0133 Irene Bar-Am For sponsorship opportunities: [email protected] 212-210-0739 Ashlee Schuppius For more event information: permitted. No refunds You event. toattendthis mustbepre-registered ad journal $4,000 fortableof10+fullpage $3,000 fortable(s)of10 $300 forindividualticket(s) Attend: to Cost 8:30 a.m.–12:00p.m.Program and Networking Breakfast 8:00 a.m.–8:30Registration South 180 CentralPark New York Club Athletic Monday, June 27, 2016 » crainsnewyork.com/events-hcjune2016 A 3 2016 23, MAY EITR TODAY REGISTER Bell said,“Itwas peoplecomingin movie studiobusinesswegot,” was superslow except for the industry.entertainment tions—directly to New York’s company to expand to sixloca- allowedits success—which the became famous.Bellattributes show ty, in2005.Thanksto theHBO productionfacili- the full-service Brooklyn, nearBroadway Stages, Café Grumpy inGreenpoint, Caroline Bellopenedthefirst makes Menin’scase well. The owner ofCaféGrumpy “Our first year“Our first inGreenpoint Girls | RI’ E OKBUSINESS YORK CRAIN’S NEW , her coffee shop , hercoffee ADDIEMORFOOT — « | 25 ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS Hosts Dr. Richard Merkin, CEO of Heritage Provider Network and Mark Wagar, President of Heritage Medical Systems with Jill Kaplan, Vice President and Publisher, Crain’s New York Business with the winners and finalists of the 2016 Heritage Healthcare Innovation Awards 2016 Heritage Healthcare Innovation Awards Meet New York’s Leading Health Care Innovators peak of health care and it’s easy to tick off the many needed recognition to their advances and ultimately help sweeping challenges facing the medical community, improve the lives of millions of New Yorkers.” from rising health care costs to an aging population. S A diverse panel of independent expert health care judges Nonetheless there are also many big opportunities for doers guided the selection process. Awards were presented in five with ambitious ideas. categories: The brand new Heritage Healthcare Innovation Awards are for • Innovation in Healthcare Delivery: recognizing innovators the first time honoring 25 leaders who are making a measurable in the development of new modes of diagnosis, treatment, contribution to improve access to affordable health care in the and care communities they serve in the New York metropolitan area, while upgrading the quality of care. These leading thinkers • Technology Innovator: highlighting an individual or are transforming the organizations that provide care to New institution that uses technology to create scalable Yorkers every day, expanding primary care options in the improvements in health care delivery and patient outcomes city, finding new ways to meet the needs of underserved • Research Investigator in Translational Medicine: populations, supporting health care startups, creating new honoring an individual or team that has achieved significant apps to streamline care and doing much more. quantitative results by accelerating the transition of novel Heritage Provider Network (HPN), one of the nation’s leading and innovative diagnostic tools and treatments to patients physician-led managed care organizations, created the awards • Individual Healthcare Leadership: recognizing a leader program, which honored the winners and finalists at an event in in the New York area who has had a significant impact in Manhattan on May 16. his or her field “Honoring innovators who have improved the quality, access • Organizational Leadership: honoring an organization that and cost of healthcare for New Yorkers is the goal of the has fundamentally changed how health care is delivered Heritage Healthcare Innovation Awards,” said Dr. Richard Merkin, President and CEO of HPN. “We will honor and support the clinicians, researchers, administrators and organizations that pioneer the newest models of diagnosis, treatment and care coordination. We believe honoring these leaders will bring CRAIN'S Heritage 7 Page Section_MECH.indd 2 5/20/16 11:52 AM ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS Heritage Healthcare Organizational Leadership Award Winner: FINALISTS Louise Cohen, MPH Ruth Browne CEO of Arthur Ashe Institute for CEO of Primary Care Development Urban Health Corporation Concerned about the health disparities among people of color, tennis star Arthur Ashe created the Arthur Ashe When Louise Cohen took the helm Institute of Urban Health in 1992. CEO Ruth Browne, of the Primary Care Development who joined the nonprofit 23 years ago, has continued his legacy through a comprehensive variety of programs. In Corporation in 2015, she brought deep one popular one, “Heart of a Woman,” the institute uses experience to the nonprofit’s mission a culturally tailored heart-health curriculum in barber shops and beauty salons. “Our work is really focused on of addressing the lack of primary community health empowerment,” said Browne. “And care services in New York City’s low- when I say that I mean giving people tools and resources and educating them so they can be more proactive about Louise Cohen income communities. She had been their own health, the health of their families and ultimately the Vice President for Public Health their community.” Programs at Public Health Solutions, a national public health institute, and previously served as agency chief of staff and deputy Neil Calman, M.D. President and CEO of The Institute of Family Health and Chair of the commissioner for health care access and improvement at the NYC Department of Health Department of Family Medicine and Community Health, and Mental Hygiene. Cohen, a member of the Primary Care Development Corporation’s Icahn School of Medicine at Mount Sinai board since 2011, replaced founding CEO Ronda Kotelchuck, who retired. Since founding the Institute for Family Health in 1983, Neil Calman has grown it into one of the largest community The Primary Care Development Corporation is unusual in that it is a community health centers in New York State, with headquarters in New York City and New Paltz. Operating in 29 locations development financial institution (CDFI) that focuses on financing primary care, said and with 1,200 employees, the nonprofit network operates Cohen. Many CDFIs concentrate on projects involved with education or housing. “We 365 days a year, with some centers open until 10 p.m. “We’ll take care of anyone who walks through our door, provide a safety net to primary care providers, many of whom could not get a standard with a health problem, a mental health problem, a dental bank loan,” said Cohen. problem,” said Calman. To prepare physicians to work with medically underserved patients, the program operates three residency training programs in family medicine. Under Cohen’s leadership, the nonprofit has also supported primary care providers as they adapt to new delivery and payment models transforming the health care industry. Richard Park, M.D. CEO of CityMD “We’ve done a great deal of work to support practices directly,” said Cohen. Established in 2010, urgent-care company CityMD has grown from a single practice on the Upper East Side to The organization also does advocacy work and convenes stakeholder meetings to 53 locations in New York City. One key commitment has discuss key issues. “We have always worked in partnership with organizations in New been providing care to underserved neighborhoods. The Heal by CityMD program, piloted in 2014 in Jackson York City, New York State and around the country to make sure we can be effective in our Heights, Queens, brought an urgent care center to the work,” said Cohen. community, one of the most underserved ones in the U.S. Operating without Medicaid managed-care contracts, CityMD worked with community partners and charity care to treat local patients. The company’s Aftercare program provides patients with access to case managers who help them manage referrals and navigate the system. “We’re proud to say we have delivered personalized, connected health care with kindness to over 2 million people,” said CEO Richard Park, M.D. Weill Cornell Community Clinic The Weill Cornell Community Clinic, where 212 medical students volunteer to provide care to 125 low- and moderate-income New Yorkers each year, recently marked its 10-year anniversary. The free clinic in Manhattan provides comprehensive primary care, as well as women’s health and mental health services. Students at the clinic have also raised funds to defray the cost of pharmaceuticals for patients, so it can provide a $45 per month reimbursement to patients for them. “One of the great things about the clinic is the model serves to Louise Cohen with the PCDC team help patients who don’t have insurance,” said Lisa Noble, co-executive director. “It helps students develop as independent physicians.” CRAIN'S Heritage 7 Page Section_MECH.indd 3 5/20/16 11:52 AM ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS Heritage Research Investigator in Translational Medicine Award Winner: FINALISTS Hollis Potter, M.D. Department Chairman, Hospital for David Levy, M.D. CEO of AposTherapy Special Surgery and Radiology Many patients with chronic hip, back and knee pain resign themselves to living with constant discomfort—even after getting physical therapy. AposTherapy aims to change Many physicians find it difficult to that. It offers special sneaker-like medical devices that, if resolve the pain and discomfort worn for about an hour a day, have been shown to shift the patient’s gait to reduce pressure on the joints. some patients suffer after joint Insurer Healthfirst has been covering the treatment for replacement. The Hospital for patients at Montefiore Medical Center and Elmhurst Special Surgery (HSS) has done Hospital. Under the leadership of CEO David Levy, M.D., AposTherapy’s devices are now available through years of research, some funded by physical-therapy practices at affiliated institutions in the National Institutes of Health Greater New York City. Hollis Potter, M.D. (NIH), into how best to use an MRI scan for these patients, to provide Nina Tandon CEO of EpiBone their physicians with information More than 900,000 patients undergo bone-related surgeries each year. Bone reconstruction startup EpiBone, conventional diagnostic imaging doesn’t offer. incorporated in 2013, is dedicated to reducing some of the risks that come with using implants from titanium As leader of the hospital’s team of 250 physicians and researchers, Hollis Potter, and other materials by using proprietary technology to cultivate bone grafts grown from patients’ own stem cells. M.D., chairman of the Department of Radiology and Imaging at the Hospital for Having grown facial bones for pigs, the Manhattan Special Surgery, collaborates with colleagues in many specialties to optimize the use biotechnology company is planning to embark on human of magnetic resonance imaging. trials in coming years, drawing on funding from investors such as PayPal co-founder Peter Thiel. “The success of the Department of Radiology and Imaging at the Hospital for Fulbright scholar and TED fellow Nina Tandon, the Special Surgery is based on translating research innovation into clinical application,” company’s co-founder, is focusing efforts on helping patients suffering from congenital facial defects or trauma said Potter. “Our research questions are guided by the specific needs of our patients to the bones of the head and face. “For any technology and concerns of our clinical colleagues.” that is a good prototype in the lab, it is important for us to explore using science to see how that technology might be able to help people,” said Tandon. Potter, a veteran of HSS, was appointed chairman of its Department of Radiology in 2013. The Department has done a decade of work to establish the safety and The New York Academy of Sciences effectiveness of imaging (NYAS) patients with orthopedic Physicians, researchers, scientists and public health hardware such as joint experts don’t always have opportunities to discuss recent breakthroughs and challenges in translating basic science replacement using MRI. into clinical applications with each other. To promote better communication among them, the NYAS and The The research at HSS has helped Josiah Macy Jr. Foundation—which fosters innovation in the education and training of health care professionals— to develop a new means by created the Translational Medicine Initiative, a three- which the MRI acquires the year partnership. The initiative’s Translational Medicine Discussion Group offers a lively intellectual forum. “The images around the implants, Academy brings together experts from every science- and she said. This new method technology-related field and gives them opportunities to Dr. Donna Rounds from Hospital for Special Surgery work together,” said Ellis Rubinstein, president and CEO, has been used by medical accepts award for Dr. Hollis Potter The New York Academy of Sciences. professionals to address Left to right: Dr. Richard Merkin, CEO of Heritage Provider issues such as adverse tissue Network, Dr. Donna Rounds, Mark Wagar, President of Heritage Medical Systems and Jill Kaplan, VP/Publisher of Watson Oncology (IBM/Memorial Sloan Kettering) reactions around orthopedic Crain’s New York Business As cancer care moves toward more individualized implants. treatments, many physicians want to tap into medical advances more quickly. To enable that, Memorial Sloan Kettering and IBM have partnered to “train” IBM’s Watson The NIH funding has allowed HSS to advance its research, which has branched computer—a cognitive-computing platform—to interpret out into assessment of all forms of pain or reduced patient function after a joint cancer patients’ clinical data and uncover evidence-based replacement. “The development of these translational research techniques has been treatments that fit their unique makeup. “Our hope is to share our knowledge and wisdom to help met with marked enthusiasm by our orthopedic colleagues,” said Potter, who noted physicians around the world understand the subtleties of that the department has now expanded to additional magnetic resonance units, each person’s illness and their cancers to select the best choice among an expanding number of options for care,” both at the main campus and HSS’ satellite facilities. said medical oncologist Mark Kris. CRAIN'S Heritage 7 Page Section_MECH.indd 4 5/20/16 11:52 AM ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS Heritage Innovation in Healthcare Delivery Award Winner: FINALISTS Albert Siu, M.D. the Ellen and Howard C. Katz Dhaval Bhanusali, M.D. CEO of Health Digital Chairman’s Chair of the Brookdale Dhaval Bhanusali, M.D., aims to use digital technology to Department of Geriatrics and help consumers get healthier. The dermatologist is CEO of Health Digital, a Manhattan- and Tampa-based health Palliative Medicine at the Icahn technology startup, founded in 2015, that provides software School of Medicine at Mount Sinai development and mentorship to health technology startups, in exchange for equity. Its co-ventures range from Caring for elderly patients who need Digital Dermatology, a telemedicine tool for dermatology, to QwikScript, an app in beta testing that lets consumers find acute or sub-acute care in a hospital the best prices on a given prescription drug at pharmacies setting can be very costly. At Mt. Sinai, in their neighborhood. “Our goal is to try to create more Albert Siu, M.D., chairman of the transparency in prices,” said Bhanusali. Albert Siu, M.D. department of geriatrics and palliative Pam Brier Senior Advisor to the President medicine, has an initiative to bring of Hunter College and Visiting Senior Fellow at the some of that care into the home. New York Academy of Medicine; former President and CEO of Maimonides Medical Center Under a three-year, $9.6 million federal grant, Medicaid and Medicare patients who As former President and CEO of Maimonides Medical show up at Mt. Sinai’s emergency room with certain conditions—such as diabetes, Center, Pam Brier made sweeping changes in the Brooklyn hospital, in everywhere from finance to technology. One urinary tract infections, chronic obstructive pulmonary disease and congestive heart key initiative, launched in 2006, was to better coordinate failure—are given the option to be treated with acute care as inpatients or at home. care of patients with schizophrenia by putting a primary- care center inside of the mental health center run by the hospital. Hospital admissions and emergency-room The initiative, known as Hospital-at-Home, enrolled its first patients in 2014. visits among the patients dropped, she says. Maimonides eventually won a $50 million federal grant to build out its So far, the program has taken care of 200 patients, all in Manhattan, with many care coordination platform for 7,500 people with serious positive results, according to Siu. “We have shown that we can deliver the services mental illnesses. “It takes more than medical care to make people healthy,” said the recently retired Brier. safely and successfully, that we can shorten what would otherwise be their length of stay, and that we have improved patient-satisfaction metrics relative to David J. Langer, M.D. Chairman, Department similar patients who would otherwise be in the hospital,” Siu said. “We’ve reduced of Neurosurgery, Lenox Hill Hospital and professor of neurosurgery, Hofstra Northwell School of Medicine complications and reduced the Neurosurgeon David J. Langer, M.D., often encounters 30-day readmission rate to the patients who feel overwhelmed by the complicated hospital.” Fewer than 5% had planning involved in treating brain and spine disorders. Teaming up with Ken Court, now director of clinical to come into the hospital for information systems for the neurosurgery department, escalation of care. Meanwhile, he decided to do something about it. Together, they created Healthflix, an app similar to an eBook, which the cost per patient dipped by provides personalized multi-media and text write-ups of 15% on average. conversations with caregivers and discharge instructions. Dr. Richard Merkin announces More than 100 patients have now used the app. Preliminary Siu, who is the immediate past Dr. Albert Siu as the winner of the research has found that it brought improved compliance chair of the U.S. Preventive Innovation in Healthcare Delivery Award and reduced complications, he said. “I think it’s about time that health care has paid attention in helping patients, not Services Task Force, has also just with our hands and brains but with the technology they developed the Mobile Acute are used to in their everyday lives,” said Langer. Care for the Elderly (MACE) Josh Bruno Co-founder and CEO of Hometeam specialized unit at the hospital, which treats high-risk geriatric patients. It is made When Josh Bruno’s grandfather needed in-home care, up of a geriatrician-hospitalist, a fellow, a nurse coordinator and a social worker, who his family struggled to navigate the system. “It felt like we help coordinate care with patients and their families. The program is designed to help were drowning,” recalled Bruno. That experience sparked the engineer to co-found Hometeam, a Flatiron District patients avoid hazards of hospitalization, such as losing muscle strength because of startup, where he is CEO. Funded by $41 million in being bed-bound. venture capital, Hometeam provides software to home- care companies that manages back-office functions like Next on his agenda is rolling some of the hospital’s services for the elderly outside payroll. It also provides an iPad app that helps track an older person’s daily activities, so their family, physicians of a nine-to-five schedule, a process that is slowly beginning. “It’s hard to get some and social workers are up to date and can help them of these services delivered late at night,” said Sui. He is optimistic. In the Hospital-at- avoid hospital admissions. “We want older adults to get back to what they love,” he said. Founded in 2013, the Home program, he notes, “it took us about eight months to see the first 50 patients. firm now employs more than 400 people, said Bruno. We were still working out the kinks. Now we see that volume in a matter of weeks.” CRAIN'S Heritage 7 Page Section_MECH.indd 5 5/20/16 11:52 AM ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS Heritage Technology Innovator in Healthcare Award Winner: FINALISTS Yaopeng Zhou, Ph.D. Gil Addo CEO of RubiconMD CEO and Co-founder of Smart Vision Labs Visits to medical specialists can be costly for insurers and patients. Harvard MBA Gil Addo aims to prevent unnecessary appointments through his Manhattan Patients who need glasses typically startup RubiconMD. On its web-based platform, primary have to visit an eye doctor to get care clinicians can get on-demand opinions from pre- screened specialists in “eConsults” within a few hours. them. That means that those who RubiconMD contracts with insurers and self-insured can’t afford an eye checkup or employers to cover the cost of the service and pays the can’t make it to the eye doctor consulting physicians their hourly rate. The company recently won a New York City Economic Development because of mobility issues often Corp. Pilot Health Tech NYC award to bring the service to live with uncorrected vision the LGBT clinic Callen-Lorde, a project slated to begin in Yaopeng Zhou, Ph.D. May 2016. “The goal is to add convenience,” said Addo. problems. Smart Vision Labs aims to address Cloud DX this gap in care. Backed by $8 Three and one half years into a four-year competition for the prestigious XPRIZE—which recognizes innovations million in venture capital, it has developed the SVOne, a smart-phone based with the potential to benefit mankind—Brooklyn startup tool—known as an autorefractor—introduced in February 2015, that can be used Cloud DX is among seven finalists vying to win $10 million. The 18-month-old firm has developed a to perform vision exams and provide needed prescriptions, and a more advanced wearable sensor device capable of diagnosing an array of version called the SVOne Pro. “The idea is we could snap a picture of your medical conditions, such as anemia and sleep apnea, and monitor five vital signs without the aid of a health care eye and spit out an eyeglass prescription, using the power of the phone,” said professional. The data is sent to the Amazon cloud for Yaopeng Zhou, Smart Vision’s CEO. observation and analysis. “Our tools are 60-80 percent less expensive than the standard tools on the market,” The Manhattan-based company has rolled out its technology at optical stores, said CEO, president and co-founder Robert Kaul. “We are much less expensive but also easier to use. That’s really with a couple in Queens using it now, Zhou said. Exams cost $40 out of pocket. important if you are going to put the tools into the hands “The affordability and convenience factor benefit a lot of customers,” he said. of patients and consumers.” “You don’t need to have insurance.” Robert Herzog CEO and Founder of eCaring What happens if someone has a serious eye problem, like glaucoma or The homes of patients with chronic disease can be a trove cataracts? “The technology will reject you and ask you to see the doctor face to of valuable information about factors that affect their health, such as eating patterns or mood disturbances, face,” said Zhou. according to eCaring CEO Robert Herzog. eCaring aims to mine that information via a mobile app in seven languages. Today the SVOne The app is easy for homecare providers at all levels of education to use to record patients’ data, thanks to its use is used around the of visual icons. Medical professionals monitor the data to globe, everywhere address patients’ health problems before they escalate, from developing Herzog said. The company partners with agencies that provide health care management. “The best way to deal countries to New with a crisis is to avoid it in the first place,” said Herzog. York City, where the company has Bill Tan Founder of Transcendent Endeavors found through In emigrating from China at age 15 and often serving as his family’s translator at the hospital, Bill Tan knew how trying on-site exams at such situations can be. He brought his knowledge of those schools that many challenges to Transcendent Endeavors, a community of innovators dedicated to bringing social change through underperforming technological solutions. Founded in 2002, Transcendent students are Marc Albanese, Co-founder of Smart Vision Labs (center) and team Endeavors has won multiple awards from the National Institutes of Health. One product it has developed, suffering from vision Canopy, offers an eLearning system for physicians and problems. Even many nurses to learn medical Spanish. Transcendent Endeavors ultimately aims to be an innovation lab for public health corporate workers are walking around without needed glasses, he said. In testing and population health, said Tan. “The way the health care 2,000 workers at 50 companies, about 30% have uncorrected vision problems, system is evolving, the delivery of care is moving away from hospitals,” he said. Smart Vision found. “If you don’t have good vision, you don’t know what good vision is,” said Zhou. CRAIN'S Heritage 7 Page Section_MECH.indd 6 5/20/16 11:52 AM ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS Heritage Individual Healthcare Leadership Award Winner: FINALISTS Michael Dowling Jason Helgerson New York State Medicaid Director President and CEO of When Jason Helgerson became New York State’s Northwell Health Medicaid director in January 2011, he inherited a Medicaid system where spending on low-income patients Since becoming president and was the highest in the nation. Instituting a global cap on spending and ushering in new models of patient care, he CEO of Northwell Health in 2002, brought down per-recipient spending while improving Michael Dowling has set ambitious overall outcomes. Now he is facing a bigger challenge: Transitioning payments to an approach that rewards goals for New York State’s largest providers for delivering value, as mandated by the federal integrated health care system. government. “It will require us to rethink everything from our regulatory system to how care is provided,” he says. Known as the North Shore-LIJ Health System until it rebranded in Stephen Lyman, Ph.D. Director, Michael Dowling, CEO of Northwell Health 2015, the Northwell Health system Epidemiology & Biostatistics Core, Hospital for Special has grown to include 21 hospitals, Surgery and Associate Professor of Public Health, Weill Cornell Medical College nearly 450 outpatient practices As the health care system has moved toward and 61,000 employees. performance-based reimbursements, it has been tricky for organizations to evaluate the success of orthopedic Before taking his role, Dowling served as New York State’s Director of Health, procedures such as knee replacements. Stephen Lyman, Ph.D., director, Epidemiology & Biostatistics Core, Education and Human Services and deputy secretary to the governor. At Hospital for Special Surgery and associate professor Northwell, creating a strong talent bench has been one of his top priorities. Under of public health, Weill Cornell Medical College, has developed a new method of surveying that is based his leadership, the Hofstra Northwell School of Medicine was founded within on patients’ own account of how they perform daily Northwell Health in 2008 and enrolled its first class of students in 2011. Another activities like walking after surgery. The approach is an alternative to existing surveys that don’t take patients’ new school, The Hofstra North Shore-LIJ School of Graduate Nursing and health literacy into account. Medicare has already Physician Assistant Studies, enrolled its first class in September 2015. adopted it. After using the new tool, says Lyman, “you have a much more nuanced conversation with patients.” Dowling has also prioritized Northwell’s Center for Learning and Innovation, which provides continuing Steven Krein Co-founder and CEO of StartUp Health education to Northwell’s Steven Krein, co-founder and CEO of StartUp Health, has made it his mission to inspire health care innovators. His team, and the Patient Manhattan-based organization, focused on creating a Safety Institute, where global community of health care “transformers,” provides students at the North digital entrepreneurs in the industry with coaching and access to a trusted peer network, as well as funding Shore-LIJ School of through a syndicate of investors. Chaired by former Time Medicine can simulate Warner CEO Jerry Levin, Startup Health has attracted powerful investors, among them AOL co-founder Steve situations such as Case and entrepreneur Mark Cuban and has built a performing physical exams network of 150 companies in 12 countries. “It’s an army Left to right: Jill Kaplan, VP/Publisher of Crain’s New York of entrepreneurs transforming health care,” said Krein. and delivering babies in Business, Michael Dowling, CEO of Northwell Health, Mark Wagar, President of Heritage Medical Systems state-of-the-art human- and Dr. Richard Merkin, CEO of Heritage Provider Network Steven Safyer, M.D. President and CEO of simulation laboratories Montefiore Health System with digitally enhanced As President and CEO of Montefiore Health System, Steven Safyer, M.D., has led the Bronx-based and controlled mannequins, in standardized patient rooms. In 2012, the institute hospital, which includes Albert Einstein College of received accreditation from the Society of Simulation in Healthcare (SSH) for Medicine, through many cutting-edge initiatives. In 2015, Montefiore opened its “bedless” hospital at its excellence in core standards, teaching and education, and assessment and Hutchinson Campus in 2015. The $152 million facility systems integration. provides the community with access to surgery but with no emergency department or beds. Under Safyer’s “The goal is to be a premier organization delivering the best quality, providing leadership, Montefiore has also taken over struggling community hospitals, started an insurance subsidiary optimum access to care and providing the best overall customer experience,” he said. and launched a successful accountable care organization (ACO)—a group of medical providers who coordinate Of course, he notes, it takes a lot of work to realize big plans. “Laying out the Medicare patients’ care. Given high-impact efforts like priorities is easy,” said Dowling. “It’s all about implementation and operations to these, he says, “People who come here for medical school don’t want to leave.” make it happen.” CRAIN'S Heritage 7 Page Section_MECH.indd 7 5/20/16 11:52 AM ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS 2016 Heritage Healthcare Innovation Awards The winners and finalists of the inaugural Heritage Healthcare Awards celebrated and networked at a special luncheon on May 16 at the Apella, an event space at the Alexandria Center overlooking the East River. Finalists Dr. Ruth Browne, CEO of Arthur Ashe Institute for Urban Health (2nd from left) and Dr. Richard Park, CEO of CityMD (far right) with guests Winner, Louise Cohen, CEO of Primary Care Development Corporation, accepts her award Crain’s New York Business VP/Publisher Jill Kaplan opens the award ceremony Host, Dr. Richard Merkin, CEO of Heritage Provider Network, announces the winners Finalist Pam Brier, former President Judge, Dr. Mary O’Neil Mundinger and Finalist, and CEO of Maimonides Medical Center, Gil Addo, CEO of RubiconMD with guest Judge, Dr. Rosa M. Gil (right) and guest Hosts Dr. Richard Merkin, CEO of Heritage Provider Network and Winner, Michael Dowling, Mark Wagar, President of Heritage Medical Systems with Jill Kaplan, CEO of Northwell Health VP/Publisher, Crain’s New York Business and winners. accepts his award For more photos and award information, go to crainsnewyork.com/heritagefinalists CRAIN'S Heritage 7 Page Section_MECH.indd 8 5/20/16 11:52 AM TO PLACE A CLASSIFIED AD, CALL 1 800 444 6007 OR VISIT CRAINSNEWYORK.COM PUBLIC & LEGAL NOTICES PUBLIC HEARING Notice of Qualification of WALKER & Notice of Qualification of Crossbridge NOTICE OF FRANCHISE AND CONCESSION REVIEW COMMITTEE DUNLOP COMMERCIAL PROPERTY PUBLIC HEARING ON AGENCY ANNUAL CONCESSION PLANS Consulting, LLC. Authority filed with NY FUNDING I CB, LLC. Appl. for Auth. filed Dept. of State on 1/20/16. 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Notice of Formation of FLOWER SHOP Interested parties may obtain a copy of the Agency Annual Concession Plans by contacting Stephanie Ruiz BRIGHTON, LLC Arts. of Org. filed with by phone at 212-676-3069. Hard copies will be provided at a cost of $.25 per page by check or money order Notice of Formation of EATALY NY FIDI, made payable to the New York City Department of Finance. Upon request, a PDF version of the Agency Secy. of State of NY (SSNY) on 05/10/16. LLC. Arts. of Org. filed with Secy. of State Annual Concession Plans is available free of cost. Office location: NY County. Princ. office of NY (SSNY) on 7/11/14. Office loca- of LLC: Windsor Properties, Attn: Paul tion: NY County. SSNY designated as agent D. Glantz, 99 Park Ave., NY, NY 10016. of LLC upon whom process against it SSNY designated as agent of LLC upon may be served. SSNY shall mail process PUBLIC & LEGAL TELECOMMUNICATIONS whom process against it may be served. to: c/o Julie Lee, 45 E. 20th St., 9thFl., NY, SSNY shall mail process to the LLC at NOTICES NY 10003. Purpose: any lawful activity. the addr. of its princ. office. Purpose: Any lawful activity. Notice of Formation of Bratland Indus- NOTICE OF FORMATION OF Pinnacle tries LLC. Arts of Org filed with secy. of Standard, LLC. Articles of Organization state of NY (SSNY) on 3/3/16. Office 33 East 33rd Street Notice of Formation of EATALY ROCK filed with the Secretary of State of NY location: NY county SSNY designated New York, NY 10016 CENTER LLC amended to EATALY USA (SSNY) on 03/14/2016. Office location: agent upon whom process may be 212-532-7400 LLC. Arts. of Org. filed with Secy. of NEW YORK County. SSNY has been served and shall mail copy of process State of NY (SSNY) on 6/27/08. Office [email protected] designated as agent upon whom process against LLC to principle business location: NY County. SSNY designated against it may be served. The Post Office address: 248 E 2nd Street Apt #11 NY, EMERGENCY as agent of LLC upon whom process address to which the SSNY shall mail NY 10009. Purpose: any lawful act. COMMUNICATIONS against it may be served. SSNY shall a copy of any process against the LLC SYSTEMS mail process to: The LLC, c/o Julie Lee, served upon him/her is: 3105 Decatur Notice of Qualification of AGNL Extrusion, SPECIALISTS 45 E. 20th St., 9th Fl., NY, NY 10003. Ave, Apt 52A, Bronx, NY 10467. The L.L.C. Authority filed with NY Dept. of • FREE PICKUP & DELIVERY Purpose: any lawful activity. principal business address of the LLC State on 4/12/16. Office location: NY is: PO Box 68, New York, NY 10009. • 48 HOUR TURNAROUND County. LLC formed in DE on 4/8/16. NY ON REPAIRS Notice of Formation of CON EDISON Purpose: any lawful act or activity. Sec. of State designated agent of LLC • FREE ENGRAVING GAS PIPELINE AND STORAGE NORTH- upon whom process against it may be EAST, LLC Arts. of Org. filed with Secy. • SHORT & LONG TERM Notice of Formation of Grand Wac LLC. Arts. served and shall mail process to: 245 RENTALS of State of NY (SSNY) on 04/13/16. Of- of Org. filed with Secy. of State of NY (SSNY) Park Ave., 24th Fl., NY, NY 10167, princi- fice location: NY County. Princ. office of on 4/27/16. Office location: NY County. pal business address. DE address of LLC: LLC: 4 Irving Pl., NY, NY 10003. SSNY SSNY designated as agent of LLC upon 850 New Burton Rd., Ste. 201, Dover, designated as agent of LLC upon whom whom process against it may be served. DE 19904. Cert. of Form. filed with DE process against it may be served SSNY SSNY shall mail process to: c/o The LLC, Sec. of State, 401 Federal St., Dover, DE shall mail process to Corporation Service 192 Lexington Avenue, Ste. 1100, NY, 19901. Purpose: any lawful activity. Co., 80 State St., Albany, NY 12207-2543. NY 10016. Purpose: any lawful activity. Purpose: Gas pipeline and storage. NOTICE OF FORMATION OF Notice of Formation of Blue Note USA, PROGRESSIVECAREER LLC. Articles of PUBLIC & LEGAL Notice of Formation of Bravest Warriors LLC. Arts. of Org. filed with NY Dept. of Organization filed with the Secretary of NOTICES LLC. Arts. of Org. filed with NY Dept. of State on 4/4/16. Office location: NY State of NY (SSNY) on 04/19/2016. County. Sec. of State designated agent State on 4/1/16. Office location: NY Office location: NEW YORK County. Notice of Qualification of Transamerica of LLC upon whom process against it County. Sec. of State designated agent SSNY has been designated as agent Retirement Insurance Agency, LLC. may be served and shall mail process to: of LLC upon whom process against it upon whom process against it may Authority filed with NY Dept. of State on Steven Bensusan, 131 W. 3rd St., NY, may be served and shall mail process be served. The Post Office address to 1/7/2016. NYS fictitious name: TRIA NY 10013, principal business address. to the principal business address: which the SSNY shall mail a copy of any Insurance Agency LLC. Office location: Purpose: all lawful purposes. c/o Spielman Koenigsberg & Parker, process against the LLC served upon NY County. Princ. bus. addr.: 408 St. LLP, 1745 Broadway, 18th Fl., NY, NY him/her is: 220 RIVERSIDE BOULEVARD Notice of Qualification of Nelson Tree- Peter St., Ste. 230, St. Paul, MN 55102. 10019, Attn: Richard Koenigsberg, APARTMENT 28F NEW YORK, NY 10069 LLC formed in DE on 4/3/2013. NY CPA. Purpose: any lawful activity. house and Supply, LLC. Authority filed The principal business address of the LLC with NY Dept. of State on 4/7/16. Office Sec. of State designated agent of LLC is: 220 RIVERSIDE BOULEVARD APART- upon whom process against it may be location: NY County. LLC formed in WA MENT 28F NEW YORK, NY 10069 Notice of Formation of FLOWER SHOP served and shall mail process to: c/o on 9/12/11. NY Sec. of State designated Purpose: any lawful act or activity. CORTLANDVILLE, LLC Arts. of Org. filed agent of LLC upon whom process against CT Corporation System, 111 8th Ave., with Secy. of State of NY (SSNY) on it may be served and shall mail process NY, NY 10011, regd. agent upon whom 05/10/16. Office location: NY County. to: c/o CT Corporation System, 111 8th Notice of Formation of Apex Global, LLC, process may be served. DE addr. of Princ. office of LLC: Windsor Properties, Ave., NY, NY 10011, regd. agent upon Art. of Org. filed with Sec’y of State (SSNY) LLC: 1209 Orange St., Wilmington, DE Attn: Paul D. Glantz, 99 Park Ave., NY, whom process may be served. WA and on 2/2/16. Office location: NY County. 19801. Cert. of Form. filed with DE Sec. NY 10016. SSNY designated as agent principal business address: 32925 SSNY designated as agent of LLC upon of State, 401 Federal St., Dover, DE of LLC upon whom process against it SE Issaquah Fall City Rd., Fall City, WA whom process against it may be served. 19901. Purpose: all lawful purposes. may be served. SSNY shall mail process 98024. Cert. of Form. filed with WA Sec. SSNY shall mail copy of process to Cecilia to the LLC at the addr. of its princ. of State, 801 Capitol Way S., Olympia, Soh, 315 W. 36th St., Ste. 17B, NY, NY office. Purpose: Any lawful activity. WA 98501. Purpose: all lawful purposes. 10018. Purpose: any lawful activities. CRAINSNEWYORK.COM MAY 23, 2016 | CRAIN’S NEW YORK BUSINESS | 33 P033-34_CN_20160523.indd 33 5/20/2016 1:05:58 PM TO PLACE A CLASSIFIED AD, CALL 1 800 444 6007 OR VISIT CRAINSNEWYORK.COM PUBLIC & LEGAL NOTICES Notice of Qualification of Aptevo BioThera- Notice of Qualification of WALKER & Notice of Qualification of UIG, LLC. Appl. Wolman Family Partners, LLC filed an peutics LLC. Authority filed with NY Dept. DUNLOP COMMERCIAL PROPERTY for Auth. filed with Secy. of State of NY App. for Authority with the NY Dept. of of State on 4/12/16. Office location: NY FUNDING II CB, LLC. Appl. for Auth. filed (SSNY) on 04/08/16. Office location: NY State on 4/11/2016. Jurisdiction: DE County. Princ. bus. addr.: 920 Cassatt with Secy. of State of NY (SSNY) on County. LLC formed in Delaware (DE) on and it was organized on 12/31/2015. Rd., Ste. 100, Berwyn, PA 19312. LLC 04/08/16. Office location: NY County. 03/21/16. NYS fictitious name: URBAN Office located in NY county. The Sec’ty of formed in DE on 1/15/16. NY Sec. of LLC formed in Delaware (DE) on INNOVATION GROUP, LLC. SSNY the State of NY (“SSNY”) is designated State designated agent of LLC upon 04/04/16. Princ. office of LLC: 535 designated as agent of LLC upon whom as agent upon whom process against it whom process against it may be served Madison Ave., 12th Fl., NY, NY 10022. process against it may be served. SSNY may be served, the address to which the and shall mail process to: c/o CT Cor- SSNY designated as agent of LLC upon shall mail process to c/o Corporation SSNY shall mail a copy of such process poration System, 111 8th Ave., NY, NY whom process against it may be served. Service Co. (CSC), 80 State St., Albany, is: 160 Casuarina Concourse, Coral 10011, regd. agent upon whom process SSNY shall mail process to c/o Corpora- NY 12207-2543. DE addr. of LLC: c/o Gables FL 33143. Address maintained may be served. DE addr. of LLC: 1209 tion Service Co. (CSC), 80 State St., CSC, 2711 Centerville Rd., Ste. 400, in its jurisdiction is: 1209 Orange St., Orange St., Wilmington, DE 19801. Cert. Albany, NY 12207-2543. DE addr. of Wilmington, DE 19808. Cert. of Form. Wilmington DE 19801. The authorized of Form. filed with DE Sec. of State, 401 LLC: CSC, 2711 Centerville Rd., Ste. filed with Secy. of State, Div. of Corps., officer in its jurisdiction of organization Federal St., Dover, DE 19901. Purpose: 400, Wilmington, DE 19808. Cert. of John G. Townsend Bldg., 401 Federal St., where a copy of its cert. of formation all lawful purposes. Form. filed with Secy. of State, 401 Ste. 4, Dover, DE 19901. Purpose: Any can be obtained is: DE Sec’ty of State; Federal St., Ste. 4, Dover, DE 19901. lawful activity. 401 Federal St., Dover DE 19901. The Notice of formation of DHP Express, LLC. Purpose: Any lawful activity. purpose is any lawful act. Arts. of Org. filed w/Secy. of State NY Notice of Formation of 204 Forsyth Notice of Formation of KEYSTONE (SSNY) on 12/7/15. Office Loc: NY Lender LLC. Arts. of Org. filed with NY REALTY NEW YORK CITY LLC Arts. of Org. Notice of Formation of 785 FIFTH AVE County. Principle Office: 1732 1st Dept. of State on 4/5/16. Office location: filed with Secy. of State of NY (SSNY) REALESTATE LLC Arts. of Org. filed with Avenue, #107, New York, 10128. SSNY NY County. Sec. of State designated on 06/18/02. Office location: NY County. Secy. of State of NY (SSNY) on 05/03/16. designated agent of LLC upon whom agent of LLC upon whom process against Princ. office of LLC: 15 Park Row, Ste. Office location: NY County. Princ. office process against it may be served. SSNY it may be served and shall mail process 23N, NY, NY 10038. SSNY designated of LLC: 151 W. 46th St., 10th Fl., NY, shall mail process to DHP Express, LLC, to: c/o Churchill Credit Holdings LLC, as agent of LLC upon whom process NY 10036. SSNY designated as agent 1732 1st Avenue, #107, New York, NY 250 Bowery, 2nd Fl., NY, NY 10012, against it may be served. SSNY shall mail of LLC upon whom process against it 10128. Purpose: Any lawful activity. principal business address. Purpose: all process to the LLC at the addr. of its princ. may be served. SSNY shall mail process office. Purpose: Any lawful activity. to the LLC at the addr.of its princ. office. Notice of Formation of NORTE UNITED, lawful purposes. Purpose: Any lawful activity. LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 04/15/16. Office loca- Name of LLC: IWMNY LLC. Arts. of Org. Notice of Formation of EDIT LDO, LLC tion: NY County. SSNY designated as filed with NY Dept. of State: 3/28/16. (LLC). Art. of Org. filed with Secretary Notice of Formation of 551 West 21st agent of LLC upon whom process against Office location: NY Co. Sec. of State of State of New York (SSNY) on St Holdings, LLC. Arts. of Org. filed with it may be served. SSNY shall mail process designated agent of LLC upon whom 05/06/15. Office location: NY County. NY Dept. of State on 4/22/16. Office to Corporation Service Co., 80 State St., process against it may be served and SSNY designated as agent of LLC upon location: NY County. Sec. of State desig- Albany, NY 12207, regd. agent upon shall mail process to: Danow McMullan whom process against it may be nated agent of LLC upon whom process whom and at which process may be & Panoff PC, 275 Madison Ave., Ste. served. SSNY shall mail a copy of the against it may be served and shall mail served. Purpose: Any lawful activity. 1711, NY, NY 10016. Purpose: any process to: Rosemarie Tully, PC, POB process to: Duval & Stachenfeld LLP, lawful act. 1054, Huntington, NY 11743. Term: c/o Alan Cohen, 555 Madison Ave., 6th 21-78 19TH STREET LLC. Art. of Org. Perpetual. Purpose: Any lawful purpose. Fl., NY, NY 10022, principal business filed with the SSNY on 04/12/16. Notice of Qual. of Baccarat 42A Owner address. Purpose: all lawful purposes. Office: New York County. SSNY desig- LLC, Auth. filed Sec’y of State (SSNY) Notice of Qual. of Athelstan Advisors nated as agent of the LLC upon whom 1/25/16. Off. loc: NY Co. LLC org. in DE Notice of Formation of 242 West 27 LLC. LLC, Auth. filed Sec’y of State (SSNY) process against it may be served. SSNY 1/11/16. SSNY desig. as agent of LLC Arts. of Org. filed with Secy. of State of 6/17/15. Off. loc: NY Co. LLC org. in shall mail copy of process to the LLC, upon whom proc. against it may be NY (SSNY) on 4/8/16. Office location: DE 6/2/15. SSNY desig. as agent of c/o Triena Capital Partners LLC, 447 served. SSNY shall mail copy of proc. to NY County. SSNY designated as agent LLC upon whom proc. against it may be West 18th Street, 4A, New York, NY NRAI, 111 Eighth Ave., NY, NY 10011, of LLC upon whom process against it served. SSNY shall mail copy of proc. 10011. Purpose: Any lawful purpose. the Reg. Agt. upon whom proc. may be may be served. SSNY shall mail process to Att: Devin Geoghegan, 15 W. 20th served. DE office addr.: 160 Greentree Dr., to: c/o Walter & Samuels, 419 Park Ste. 101, Dover, DE 19904. Cert. of Form. St., NY, NY 10011. DE off. addr.: CSC, Notice of Formation of West 10th Street Avenue South, NY, NY 10016. Purpose: on file: SSDE, Townsend Bldg., Dover, 2711 Centerville Rd., Wilmington, DE LLC. Arts. of Org. filed with Secy. of any lawful activity. DE 19901. Purp: any lawful activities. 19808. Cert. of Form. on file: SSDE, State of NY (SSNY) on 1/15/16. Office Townsend Bldg., Dover, DE 19901. location: NY County. SSNY designated Purp: any lawful activities. Notice of Qualification of 10MSW 21A, as agent of LLC upon whom process Notice of Qualification of VILLAGE LLC Appl. for Auth. filed with Secy. of against it may be served. SSNY shall GREENWICH LLC. Appl. for Auth. filed State of NY (SSNY) on 05/03/16. mail process to: c/o Hirschen Singer & with Secy. of State of NY (SSNY) on Notification of Qualification of Grossman Office location: NY County. LLC formed Epstein LLP, 902 Broadway, 13th Fl., NY, 04/11/16. Office location: NY County. Cedar Lane/36th Street, LLC. Authority in Delaware (DE) on 04/06/16. Princ. NY 10010. Purpose: any lawful activity. LLC formed in Delaware (DE) on filed with Secy. of State of NY (SSNY) on 02/12/16. Princ. office of LLC: c/o 3/17/2016. Office location: NY County. office of LLC: 10 Madison Sq. West, Unit Grant, Herrmann, Schwartz & Klinger LLC formed in NV on 1/9/2012. SSNY 21A, NY, NY 10010. SSNY designated Notice of Formation of VENDO FORTIS, LLP, 675 Third Ave., Fl. 26, NY, NY designated agent upon whom process as agent of LLC upon whom process LLC (LLC). Art. of Org. filed with 10017.SSNY designated as agent of may be served and shall mail copy of against it may be served. SSNY shall Secretary of State of New York (SSNY) LLC upon whom process against it may process against LLC to: Janie Manage- mail process to c/o Corporation Service on 01/21/16. Office location: NY be served. SSNY shall mail process to ment Corp., 335 Oak Avenue, River Co., 80 State St., Albany, NY 12207- County. SSNY designated as agent of the LLC at the addr. of its princ. office. Edge, NJ 07661. Principal business 2543. DE addr. of LLC: 2711 Centerville LLC upon whom process against it may DE addr. of LLC: 2711 Centerville Rd., address: 1655 Blue Spruce Road, Reno, Rd., Ste. 400, Wilmington, DE 19808. be served. SSNY shall mail a copy of Ste. 400, Wilmington, DE 19808. Cert. NV 89511. Certificate of LLC filed with Cert. of Form. filed with Secy. of State, the process to: Vendo Fortis, LLC, POB of Form. filed with Jeffrey W. Bullock, Secy. of State of NV located at: 101 DE Div. of Corps., John G. Townsend 2015, NY, NY 10159. Term: Perpetual. 401 Federal St., #4, Dover, DE 19901. North Carson Street, Suite 3, Carson Bldg., 401 Federal St. - Ste. 4, Dover, Purpose: Any lawful purpose. Purpose: Any lawful activity. City, NY 89701. Purpose: any lawful act. DE 19901. Purpose: Any lawful activity. WANT TO GET YOUR COMPANY IN FRONT OF 250,000 INFLUENTIAL BUSINESS PROFESSIONALS? Contact Joanne Barbieri at 212-210-0189 for classified advertising opportunities. 34 | CRAIN’S NEW YORK BUSINESS | MAY 23, 2016 P033-34_CN_20160523.indd 34 5/20/2016 1:03:42 PM To place your listing, contact Joanne Barbieri • 212-210-0189 ARCHITECTURE City National Bank LAW Savills Studley Vidaris Jeffay Chang joined Windels Marx Lane & Mittendorf, LLP Jordan Weiss, 31, Matthew Pirozzi joins Vidaris as Chief City National Bank Pasqualino Russo was joined the Savills Financial Officer. His responsibilities as Senior Vice promoted to Partner Studley as Managing President and include accounting, financial at Windels Marx Director. He is on the Regional Trust reporting, project finance, treasury, Lane & Mittendorf, team of Executive financial planning and analysis, and Manager. He was LLP. He will continue Managing Director tax. Mr. Pirozzi has over 15+ years of formerly Senior to hold the position John Mambrino and financial experience. He served as Trust Strategist at of Senior Special Senior Managing the Finance Director for the U.S. The Goldman Sachs Trust Company. Counsel. Pat’s Director Nick Farmakis. In this role, Transportation Division and as Chang is responsible for developing practice focuses on Global Controller for Parsons client relationships as well as ad- ground transportation regulation and Weiss will be primarily responsible Brinckerhoff Inc. His career includes ministering traditional trusts, char- licensing, compliance, regulatory for business development and exe- mergers and acquisitions, internal itable trusts and managed agency reforms, accessibility, medallion cuting unique, creative, tenant-fo- and external audits, financial systems accounts. In addition, he adminis- market valuation, corporate inves- cused real estate strategies on behalf support and implementation, ters private foundations and estates. tigations, litigation, employment of new and existing clients. With business integration, profit-and- Chang works with other City loss leadership, and shared service matters, tax matters, due diligence, nearly ten years of experience, National personal trust colleagues in and government procurement. center functions. Mr. Pirozzi is a Southern California, San Francisco, Weiss has developed a distinguished CPA in the State of New York. He is In his new role as Partner, he will client roster including, Mitsui & Orange County and Delaware in continue his representation of a graduate of Siena College. Co. USA, Paddle8, Vakifbank, YSL, providing comprehensive personal transportation clients, and expand BCBG Max Azria, Savoy Bank and trust and estate administration his practice further in matters per- FINANCE services. taining to due diligence, compliance Partner Fund Management. He was and corporate investigations. formerly Director at Cushman & City National Bank Wakefield. Brandon Williams joined City National TRANSPORTATION Bank as Senior Vice REAL ESTATE President and Parsons Corporation Regional Manager. Madison Marquette Charles Manning, 64, He was formerly EXECUTIVE MOVES Thomas Moran joined joined Parsons Executive Vice Madison Marquette President at TD Try our new Advanced Corporation as Senior Bank. Based out of City National’s as Investment Vice President and Park Avenue office, Williams leads Search tool with data on Director. He was Infrastructure Leader a team of experienced private client formerly Principal for New York and thousands of executives at Atalaya Capital services professionals. Williams and New Jersey. He was Management. Moran his team provide advice and services and personnel changes. formerly Senior Vice President, in investment management, custom- will oversee acquisi- Design. Mr. Manning will focus on ized credit, depository and cash www.crainsnewyork.com/ tions and investments in the New management, wealth planning and York metropolitan area and source business development and repre- trust services to high-net-worth execmoves investment opportunities for Mad- senting Parsons to the region’s key families, nonprofit organizations ison Marqette’s new and existing stakeholders. Consulting Services, and professional services firms. investment vehicles. North America at AECOM. EXECUTIVE MOVES Announce new hires, promotions and board appointments www.crainsnewyork.com/execmoves to the New York business community CRAIN’S EXECUTIVE MOVES For one flat fee: print, online and e-newsletter placement guaranteed. To submit your listing and view the searchable database, visit crainsnewyork.com/execmoves MAY 23, 2016 | CRAIN’S NEW YORK BUSINESS | 35 P035_CN_20160523.indd 35 5/18/2016 2:23:14 PM 20160523-NEWS--0036-NAT-CCI-CN_-- 5/20/2016 5:48 PM Page 1 GOTHAM GIGS HOME SWEET HOME: Todd Patrick at the renovated Market Hotel. A rolling stone settles down TODD PATRICK Todd Patrick put Brooklyn’s underground music scene on the map.Now he’s found a permanent venue AGE 40 o matter how many condos pile up in New programming with local nonprofits. BORN Richardson, Texas York, gritty, independent venues where Patrick is far from the only one committed to creating RESIDES Ridgewood, Queens young people can see music and art on the offbeat cultural spaces in New York, but he’s certainly cheap seem to squeeze their way into the among the most prolific. Since 2001, he’s established or EDUCATION B.A., University of Texas at Austin Nlandscape. But they don’t just grow spontaneously had a hand in running a dozen venues, mostly in through the pavement like weeds. Brooklyn. Most of the money he makes from selling tick- NINE-TO-FIVE Patrick’s first gig in Since arriving from Portland, Ore., 15 ets and drinks goes toward rent and paying New York was as a secretary at Bank of America, a job he said afforded years ago, Todd Patrick, known in the Keeping performers and staff, he said. To supplement “ him the downtime and long-distance underground music scene as Todd P, has these places his income, he rents studio space to artists phone access to book shows from his made it his business to see that when one running on a and musicians. desk. stage for new and avant-garde artists creative level In January, he reopened Market Hotel, a DIY Patrick signed the lease on his withers, another springs up. high-ceilinged Bushwick, Brooklyn, venue first New York venue, Llano Estacado, At Trans-Pecos, Patrick’s Ridgewood, seems pretty that had been quiet for more than five years in 2005. Now-famous acts like Queens, venue, a music enthusiast with $10 since a police raid shut it down for selling Animal Collective played the attractive to Williamsburg warehouse, which can spend half a Saturday night dancing to liquor without a license. Now in possession me featured a “scary makeshift toilet high-concept DJ sets, then wander past the ” of all the necessary permits, and with 13 behind a black plastic curtain,” makeshift bar and venture down to the basement to years left on his lease, Patrick said he doesn’t anticipate according to a write-up on the thrash around with a no-nonsense noise band. Visit having to start from scratch anytime soon. website Free Williamsburg. again on Sunday afternoon and a cellist might be play- The decision to go legit may be off-putting to kids who ALL AGES Patrick allows those ing in the backyard; on a weekday, the space may be seek out the thrill of unsanctioned warehouse shows, but under 21 into his venues (although taken over by free music workshops Trans-Pecos hosts for Patrick, it’s liberating. he doesn’t let them drink). That doesn’t mean he caters to their musi- for people with disabilities. “The idea of just keeping these places running on a cal preferences. “Most teenagers “It’s important that a space like this isn’t just a dark, creative level seems pretty attractive to me,” said don’t have good taste,” he said. windowless cavern by day with nothing going on,” said Patrick. “I’ve never been able to do that. I’ve always “We’re just trying not to exclude.” – CAROLINE LEWIS BUCK ENNIS Patrick. His partner, Sam Hillmer, develops daytime been worried about their survival.” 36 | CRAIN’S NEW YORK BUSINESS | MAY 23, 2016 20160523-NEWS--0037-NAT-CCI-CN_-- 5/20/2016 5:49 PM Page 1 SNAPS Generosity exceeds goal at Win benefit Guests at the Win (formerly Women in Need) benefit were exceptionally generous, donating $500,000 more than the nonprofit’s target. The May 12 benefit raised $2.5 million for the organization, which runs shelters and supportive housing for women and children in need. Nanda Anand, film director and Win board member, Lois Herzeca, partner at law firm Gibson, Dunn & Crutcher and Win board member, Judy Loeb Goldfein, Win board member, and Clover Bergman, managing Pat Battle, NBC Weekend Today host, and Christine Quinn, director at Goldman Sachs and Win board former City Council speaker and current president and CEO member. of Win. $4 million raised for health system Going to bat for inner-city kids Dick Chasin, president of Equity One Partners, Rusty Staub, former Mets first baseman, Jim Marbach, president of Marbach, and Tony de Nicola, co-presi- dent of Welsh, Carson, Anderson & Stowe, at the May 10 benefit for the Inner- City Scholarship Fund, which raises money for low-income children to attend Catholic schools within the Archdiocese of New York. Ashutosh Tewari, chair of the Department of Urology at the Mount Sinai Health System, and his wife, Mamta Tewari, at a fete for the health system on May 5 at the Central Park Conservatory Garden. Peter Grauer, president, Inner-City Scholarship Fund, and chairman, Bloomberg L.P., and Cardinal Timothy Michael Dolan, arch- bishop of New York, at the Inner-City benefit at Cipriani 42nd Street, which raised $1.3 million. Dr. David Reich, president and CEO of Mount Sinai Hospital, Dr. Eva Andersson-Dubin, founder of the Dubin Breast Center at Mount Sinai, and Keith Marran Jr., a health-system trustee, at the benefit, which raised $4.2 million. BFA, MOUNT SYSTEMS, MATTHEW SINAI HEALTH PHOTOGRAPHY ADAM SEE MORE OF THIS WEEK’S SNAPS ONLINE AT CRAINSNEWYORK.COM/SNAPS GET YOUR GALA IN SNAPS. EMAIL THERESA AGOVINO, [email protected] MAY 23, 2016 | CRAIN’S NEW YORK BUSINESS | 37 20160523-NEWS--0038-NAT-CCI-CN_-- 5/20/2016 6:14 PM Page 1 FOR THE RECORD* Burger & Lobster Queens. The J.Crew sub- Wakefield. The landlord, Fofanah Inc. signed a 20- NEW IN TOWN 1 Bryant Park BANKRUPTCIES sidiary will occupy part of Paramount Leasehold, was year lease for 5,500 square The London-based chain, the fourth floor and part of represented by Avison feet at 202-11 Hollis Ave. in Cupcake Market whose name describes its Minerva Hospitality the penthouse in the 10- Young. A source reports Queens. The discount store 74 E. 7th St. 3-item menu, will open a Group story building. The tenant asking rents in the build- will occupy the property Hand-painted, $8.50 second Manhattan out- 302-304 W. 4th St. was represented by Savills ing range from $50 to $70 between 202nd and 203rd cookies of Hillary Clinton, post, in midtown west. The restaurant group, Studley. The landlord, a per square foot. streets. The tenant and Bernie Sanders and Donald which owns West Village partnership between Atlas landlord were represented Trump have been selling Fabio Scalia eateries Café Minerva and Capital Group, Square Mile RETAIL by Delphine Real Estate out daily at this new East 311 W. Broadway Hamilton’s Soda Fountain Capital Group and Invesco Executive Color Systems Advisory Group. The asking Village bakery. The Sicilian hairstylist and Luncheonette, filed Real Estate, was repre- signed a five-year renewal rent was $17 per square opened his second epony- for Chapter 11 bankruptcy sented by NGKF. lease for 6,500 square feet foot. f.a.d. weekend (fashion, mous salon in SoHo. on April 14, citing esti- According to Commercial at 42 W. 39th St. in mid- art and design) mated liabilities and assets Observer, asking rent in town west. The renewal Daniel Wellington signed 22 Boerum Place, Glady’s Caribbean of $500,001 to $1 million. the building is around the will take effect in the a five-year lease for 500 Brooklyn 453 Rogers Ave., Brooklyn $40s per square foot. beginning of 2017 and carry square feet at 444 Broome This indoor pop-up flea The popular Crown RD Rice Construction through the end of 2021. St. in lower Manhattan. The market runs from 11 a.m. Heights restaurant serving 32 W. 128th St. Telsey + Co. signed a 10- The printing and copying watchmaker will occupy to 6 p.m. on Sundays Caribbean classics will Filed for Chapter 7 bank- year lease for 12,000 services company will con- the ground-floor space of through June 26 in down- open a second location, in ruptcy on April 13, declar- square feet at 1501 tinue to occupy the 18th the five-story building town Brooklyn. Prospect-Lefferts Gardens. ing estimated liabilities Broadway. The casting and penthouse floors of the between Broadway and and assets of $1,000,001 to agency will occupy part of property between Fifth and Mercer Street. The tenant Feta Bar & Grill Heyday $10 million. The creditors the fifth floor of the 35- Sixth avenues. Both the was represented by 1436 Lexington Ave. 121 Fulton St. with the largest unsecured story property between tenant and the landlord Compass. The landlord, This Mediterranean The facial shop opened a claims are Edgar and West 43rd and West 44th were represented by Adams Sherr Equities, was repre- restaurant serving Greek pop-up location inside Clarissa Bronfman, owed streets. The tenant was and Co. The asking rent in sented in-house. The ask- classics opened on the nail salon Tenoverten, in $2 million; R. Douglass represented by Cresa New the renewal was $48 per ing rent was $625 per Upper East Side. the financial district. Rice, owed $750,000; and York and Cushman & square foot. square foot. AIG Property Casualty Co., Magnum Hublot owed $656,031.82. 134 Prince St. 743 Fifth Ave. DEALS ROUNDUP The Belgian ice cream bar The Swiss watchmaker TBA Global Events maker launched its first opened its largest flagship 220 W. 42nd St. TARGET/SELLERS TRANSACTION BUYERS/INVESTORS TRANSACTION TYPE stateside store in SoHo in the U.S., and its tallest Filed for Chapter 7 bank- SIZE [IN MILLIONS] featuring a dipping bar in the world, on the Upper ruptcy on April 14. The fil- NextAdvisor Inc. $370.7 Bankrate Inc. SB M&A with a choice of 20 top- East Side. ing cites estimated liabili- (Manhattan) pings, including goji ties of $10,000,001 to $50 berries and rose petals. Rockaway Brewing Co. million and assets of TCR International N.V. $229.1 3i Infrastructure; FB M&A Beach 67th Street, (unknown minority RREEF Infrastructure $500,001 to $1 million. stake)/Chequers Capital; (Manhattan) Nohohon Tea Room 415 Beach 72nd St., Florac SAS 9 St. Marks Place Woodward Avenue and Three Angels Realty The Toronto-based tea Troutman Street, Queens 173-25 Jamaica Ave., 1,004-unit apartment $187.0 MSD Capital; SB M&A portfolio in suburban TruAmerica room opened its first U.S. The local brewer will open Queens Baltimore/ Multifamily location, in the East three beer gardens this Filed for Chapter 11 bank- Klingbeil Capital (Manhattan) Village. It will serve a summer. Two will be tem- ruptcy on April 20. The Management Ltd. variety of Japanese- porary beachside bars, and filing cites estimated lia- imported vegan matcha the third will eventually bilities and assets of Portfolio of 36 commercial $184.0 DW Partners SB M&A real estate assets/ (Manhattan) bubble teas. become a second brewery. $1,000,001 to $10 million. Propertize B.V. Trademark Taste & Grind Retail property portfolio/ $167.2 Aventus Property SB M&A 38 W. 36th St. MERGERS & REAL ESTATE DEALS the Blackstone Group Group; One Managed (Manhattan) Investment Funds Ltd. The coffee shop-restau- ACQUISITIONS rant combination serving COMMERCIAL Symmetry Surgical Inc./ $153.4 RoundTable FB M&A diner classics and pastries New York-based com- PricewaterhouseCoopers Andalusian Capital Partners; Healthcare opened in midtown west. puter coding boot camp signed a 17-year lease for Luther King Capital Management Management Corp.; Moab Fullstack Academy has 240,000 square feet at 90 Capital Partners (Manhattan); acquired the Starter Park Ave. in midtown east. RTW Investments (Manhattan) COMPANY MOVES League, a Chicago-based The auditing firm will coding school. The schools occupy the second Aqua Comms Ltd. $75.0 Cartesian Capital GCI Group (Manhattan) Amorino Gelato will operate as separate through fourth floors, the 414 Amsterdam Ave. entities but share a cur- sixth floor, and the eighth VTS Inc. $55.0 Insight Venture GCI The Italian gelateria chain riculum. Starter League and ninth floors of the 41- Partners (Manhattan); opened its fourth location, CEO Neal Sales-Griffin story building between OpenView Venture Partners; Trinity on the Upper West Side. will remain with the East 39th and East 40th Ventures company. Starter League streets. The tenant was B. Café employees will be offered represented by CBRE. The Selected deals announced for the week ended May 5 involving companies in metro New York. SB M&A: 620 Amsterdam Ave. full-time employment. landlord, Vornado Realty Strategic buyer M&A represents a minority or majority acquisition of existing shares of a company without the participation of a financial buyer. FB M&A: Financial buyer M&A represents a minority or majority The Belgian bistro will Trust, was represented in- acquisition of existing shares of a company with the participation of a financial buyer. GCI: Growth capital reopen in October on the WME/IMG, a New house. The asking rent investment represents new money invested in a company for a minority stake. Upper West Side, featuring York-based media, sports was not provided, but SOURCE: CAPITALIQ more than 50 artisanal and fashion agency, has asking rents in that por- beers and a sidewalk café. acquired St. Louis’ Fusion tion of the building are Marketing. Fusion, reportedly in the high GET YOUR NEWS ON THE RECORD Beetle House whose clients include $60s to low $70s per To* submit company openings, moves or real estate deals, or to receive further information, 308 E. 6th St. Anheuser-Busch and square foot. email [email protected]. The owners of Stay Classy World Wide Technology, For the Record is a weekly listing to help businesspeople in New York find opportunities, New York, a bar inspired will continue to operate Madewell signed a 10- potential new clients and updates on customers. Bankruptcy filings from the Eastern and by Will Ferrell, will open under the same name and year lease for 60,000 Southern districts of New York are listed alphabetically. Real estate listings are provided in this Tim Burton-themed retain its CEO, Bill square feet at 30-30 47th order of square footage. bar in the East Village. Decker. Ave. in Long Island City, 38 | CRAIN’S NEW YORK BUSINESS | MAY 23, 2016 20160523-NEWS--0039-NAT-CCI-CN_-- 5/20/2016 7:27 PM Page 1 PHOTO FINISH Up from the ashes? n a sunny afternoon in mid-May, the Serbian Orthodox Cathedral of St. Sava in the Flatiron district stood gutted. Less than a month Oafter a fire engulfed the building, the charred roof beams had been torn down and a con- struction fence erected in anticipation of cleanup. The church expects an insurance settle- ment, and raised about $8,000 a day in the week after the fire. “The parish is taking it very hard, but with God’s help we will rebuild,” the Rev. Djokan Majstorovic, the congregation’s leader, told Crain’s. How it will rebuild is another story. The church’s stone exterior and now-destroyed roof were designated a city landmark in 1968. But the parish has air rights: A deal to sell 200,000 square feet to Madison Equities fell through in 2014, after the developer said a $13.5 million broker fee had not been dis- closed. Churches have proved adept at staying put in the city, even as their finances have tightened. Of the 255 religious buildings designated as landmarks, 235 are still in use by religious organizations today, according to Ann Friedman, director of sacred sites at the New York Landmarks Conservancy. The Cathedral Church of St. John the Divine in Manhattan’s Morningside Heights suffered a devastating fire in 2001. Over the next 15 years, it arranged for leases to develop luxury apartment towers on the extensive grounds of the 123-year-old Gothic-style cathedral. The deals added more than $5 million in yearly cash flow, helping fund programs and ministry at the Episcopal church. — PETER D’AMATO O T A M A ’ D R E T E P MAY 23, 2016 | CRAIN’S NEW YORK BUSINESS | 39 B:11.125” T:10.875” S:10.25” Going big for small business. B:14.75” T:14.5” S:14” Via prepaid rebate card w/ mobile internet line RUSSELL GRIMM BROTHERS BREWHOUSE LOVELAND, CO T-MOBILE CUSTOMER Grimm Brothers Brewhouse and millions of other small businesses use T-Mobile @Work for wireless with straightforward pricing and no overages, ever. You also get a 24/7 dedicated business account team that knows you and your company. Plus, we doubled our 4G LTE coverage in the last year to cover 305 million people, so you can get more done in more places. See an @Work specialist at a T-Mobile store today. T-Mobile.com/AtWork Limited time offers; subject to change. Part’g locations. Credit approval, deposit & $20 SIM starter kits may be req’d. 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