CENTER STAGE How Film and TV Studio Executives Such As Hal Rosenbluth Helped Transform Two Queens Neighborhoods PAGE 12

CRAINSNEW YORK BUSINESS

NEW YORK BUSINESS® FEBRUARY 27 - MARCH 5, 2017 | PRICE $3.00

CENTER STAGE How film and TV studio executives such as Hal Rosenbluth helped transform two Queens neighborhoods PAGE 12

VOL. XXXIII, NO. 9 WWW.CRAINSNEWYORK.COM DEPORTATION KITCHEN A CO-OP’S ECONOMICS COUTURE CONSCIENCE P. 6 P. 8 P. 15

NEWSPAPER

P001_CN_20170227.indd 1 2/24/2017 6:45:37 PM FEBRUARY 27 - MARCH 5, 2017 CRAINSNEW YORK BUSINESS

FROM THE NEWSROOM | MATTHEW FLAMM | SENIOR REPORTER IN THIS ISSUE

Trump’s business impact 4 IN CASE YOU MISSED IT 5 POLITICS Small businesses HOW MUCH CONTROL presidents have over the economy is al- may lose their 6 INSTANT EXPERT ability to control ways a matter of debate. Despite the fact that President Don- health care costs ald Trump bills himself as a savvy businessman, questions 7 HEALTH CARE abound over whether his policies will be good for business, 8 SPOTLIGHT and by extension, New York. 9 VIEWPOINTS Apart from being unpredictable (not a favorite quality 10 THE LIST among the corporate crowd), the former reality-television FEATURES star thrives on—and encourages—conflict and drama. Just ask Macy’s, which is enduring two Trump-inspired boy- 12 STUDIO CITY cotts: the one the president himself initiated when 15 CONSCIENCE OF A CO-OP the retailer dumped his apparel brand in 2015 and the grassroots #GrabYourWallet campaign calling on It would be naive shoppers to bypass the store until it drops the Ivanka to think Trump’s P. 20 “ ALVARO GAVIRIA Trump brand. policies will have no Wall Street has sustained a historic stock market rally, but Goldman Sachs recently said the gains impact on the city. could reverse themselves if the White House is un- It’s just a matter of able to roll back financial reforms quickly. whether it’s modest Now a major concern is the degree to which Trump and Republican lawmakers curb immigration. or significant That’s of particular significance to New York, where 20 GOTHAM GIGS immigrants have resurrected neighborhoods while fueling new businesses—from 21 SNAPS restaurants on Staten Island to startups in the Flatiron District—at a higher rate than 22 FOR THE RECORD native-born Americans. The foreign-born also make up nearly a third of the city’s 23 PHOTO FINISH “creative class,” or knowledge workers, said New York University’s Steven Pedigo. CORRECTIONS Trump’s broadly conceived travel ban and new, stepped-up immigration- Developer BRP Cos. is building 669 affordable enforcement measures target those here illegally but could wind up having long- apartments at 147-22 Archer Ave., Queens. There term consequences for the economy. will not be a hotel. “City tries again in Jamaica,” “What’s important is the signal that sort of policy sends to the rest of the world,” published Feb. 20, misstated those facts. said Ralph McLaughlin, chief economist of residential real estate site Trulia. “Are we a country that will inspire people to come here?” One irony is that a president who made his name in New York real estate could end up weakening demand in the housing market. In the metro area, for example, 34% of homeowners are foreign-born. New York’s growth depends largely on immigrants, who in turn buy products Americans sell. It’s too soon to know the effects, but that hasn’t stopped some from worrying. “It would be naive to think [the policies] will have no impact on the city,” said ON THE COVER Jonathan Miller, CEO of real estate consulting firm Miller Samuel. “It’s just a matter PHOTO: BUCK ENNIS of whether it’s modest or significant.”

DIGITAL DISPATCHES CONFERENCE CALLOUT MARCH 7 Go to CrainsNewYork.com MEET NEW YORK’S READ Jay Z will BRAVEST LEADER become the first rapper inducted New York City has experienced into the Songwriters > a historic drop in fire fatalities. Hall of Fame. Fire Commissioner Daniel Nigro will detail his priorities and ■ A group including insights for how to build James Dolan and the on that success. Wilpon family wants to invest in a new hockey arena for the Island- THE YALE CLUB ers when the team’s stint at Barclays Center ends in 2019. A site in Elmont, N.Y., that is 8 to 9:30 a.m. DANIEL NIGRO controlled by the New York Racing Associa- [email protected] tion is under consideration. ■ President Donald Trump’s top economic Vol. XXXIII, No. 9, Feb. 27, 2017—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for adviser, Gary Cohn, recused himself from double issues the weeks of June 26, July 10, July 24, Aug. 7, Aug. 21 and Dec. 18, by Crain Communications Inc., 685 Third matters pertaining to Goldman Sachs, his Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Ave., Detroit, MI 48207-2912. former employer of 25 years. For subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. ■ Alan Colmes, the onetime liberal voice of (GST No. 13676-0444-RT) ©Entire contents copyright 2017 by Crain Communications Inc. All rights reserved. Fox News, died at 66. BUCK ENNIS, AP IMAGES

2 | CRAIN’S NEW YORK BUSINESS | February 27, 2017

P002_CN_20170227.indd 2 2/24/17 8:35 PM WHAT’S NEW February 27, 2017

AGENDAWhen housing policy is personal, politicians should butt out

n 1963 a co-op tower went up on St. James Place in Brooklyn under a relatively new affordable-housing program, known as Mitchell-Lama, that was created to give New Yorkers of lim- ited means and little access to financing the opportunity to own Ia home. Shareholders were told they could eventually cash in on their asset’s appreciation by selling their apartments on the open market if SHAREHOLDER RIGHTS: Owners several conditions were met: They would have to wait at least 20 years, of this Brooklyn pay off the building’s underlying mortgage and then go through an co-op should have been able to obscure process involving shareholder referendums. (See page 15.) decide their fate without pressure For the St. James residents, it took 50 years before the mortgage was from elected paid off. Last week a vote was held to decide whether to craft an offering officials. plan that would preserve the option to go private but not commit to it. But some public officials felt it was their job to pressure owners of the know their personal circumstances. Some residents who endured Clin- 326 units to remain in Mitchell-Lama. That would mean owners could ton Hill’s more dangerous years—when they brought in guards and attack sell their stakes only for five-figure sums, rather than the hundreds of dogs to patrol the building—wanted to reap the rewards of the neighbor- thousands of dollars that apartments in their Clinton Hill neighborhood hood’s turnaround. Others sought to bequeath their now-coveted units to fetch these days. A day before ballots were cast, Public Advocate Letitia their children, not a stranger who wins a housing lottery. “In 1963 I took James, state Sen. Velmanette Montgom- a chance, investing my meager resources ery, Assemblyman Walter Mosley and It’s wrong for politicians to ask people in 21 St. James Place,” owner Lawrence Councilwoman Laurie Cumbo told the Whiteside wrote. “Now, after more than residents it was their duty to keep their to essentially donate their homes in 50 years of shareholder investment … I’m building affordable. James even pandered the name of affordable housing told it would be unfair to others if I cash in to residents on race, imploring them to my winning ticket. Are you kidding?” protect the “culture” of the area from gentrification, by which she meant He won’t get the chance: His side lost the vote. The politicians cheered. not selling at market rates to buyers who likely would be white. “What But they were out of line to get involved in the first place. If they want to about the impact on diversity?” James demanded. “Do any of you care?” make personal sacrifices to slow gentrification, they are welcome .to James Laying a guilt trip on the owners was unconscionable on many levels. bought a nearby multiunit brownstone for $550,000 in 2001 that would To begin with, the decision was theirs alone. For some it was a wrenching fetch several times that amount today. Will she hold a lottery for a lucky choice, and the last thing they needed was bullying by outsiders who don’t winner to buy it for a fraction of its value? Don’t count on it. — THE EDITORS

FINE PRINT A rule went into effect in September that made it harder for traders of corporate loans to earn income if the process for transferring funds took too long. A recent study revealed that within weeks of the change, the average time for a loan to move from seller to buyer dropped 21%—from 19 days to 15 days. Because the loans are settled manually, the improvement was hailed as a triumph of humans over robots.

BY GERALD SCHIFMAN STATS

25 WORDS OR LESS CLIMBING THE INCOME LADDER

UNDERPRIVILEGED STUDENTS AT New York’s public colleges get well-paying jobs by their early 30s in greater numbers than at nearly every other school in the United States. A higher percentage AND THE CIT of low-income Columbia University students also do, but the school has so few such students The conclusion is that it trails local public counterparts in what a recent study called “mobility rate.” “inescapable that he Portion of Columbia students who ascend is, despite his flaws, % from the poorest fifth of households 3.1 to the top fifth, compared with CUNY schools’ 7.2% and SUNY–Stony Brook’s 8.4%

one of the most Y

extraordinary men Portion of low-income Columbia students % who reach the top income quintile, of his generation. 61.2 compared with 51% at SUNY–Stony Brook —Attorney Benjamin Brafman about his client Jacob Alexander, former Portion of Columbia students % Portion of Columbia students whose whose parents’ income is in the Comverse Technology CEO, who parents’ income is in the top 1%. 5% bottom quintile, versus 29% at pleaded guilty to securities fraud 13.7 SUNY–Stony Brook’s figure is 0.4%. CUNY and 16% at SUNY–Stony Brook 10 years after fleeing to Namibia

BUCK ENNIS ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY. SOURCES: Economists Raj Chetty, John N. Friedman, Emmanel Saez, Nicholas Turner and Danny Yagan

February 27, 2017 | CRAIN’S NEW YORK BUSINESS | 3

P003_CN_20170227.indd 3 2/24/2017 6:41:27 PM AGENDA ICYMI CRAINSNEW YORK BUSINESS EDITOR IN CHIEF Rance Crain publisher, vp Jill R. Kaplan executive assistant Devin Arroyo, 212.210.0701 EDITORIAL Cuomo, Schneiderman vie editor Jeremy Smerd managing editor Brendan O’Connor assistant managing editors Erik Engquist, to be Wall Street’s watchdog Jeanhee Kim, Robin D. Schatz web editor Amanda Fung OV. ANDREW CUOMO and state Attorney General Eric copy desk chief Telisha Bryan art director Carolyn McClain Schneiderman appear to be locked in battle over who photographer Buck Ennis senior reporters Joe Anuta, Aaron Elstein, will act as the sheriff of Wall Street during the Trump Matthew Flamm, Daniel Geiger G reporters Rosa Goldensohn, administration. Jonathan LaMantia, Caroline Lewis The latest fight between New York’s two most powerful data reporter Gerald Schifman web producer Peter D’Amato elected officials centers on the governor’s bid to expand the columnist Greg David contributing editors Tom Acitelli, authority of the state Department of Financial Services. Cre- Theresa Agovino, Erik Ipsen, Cara S. Trager ated by Cuomo six years ago, the department has emerged as ADVERTISING one of the nation’s most powerful banking regulators. Cuomo www.crainsnewyork.com/advertise advertising director Irene Bar-Am, wants to broaden its power to bring civil enforcement actions [email protected], 212.210.0133 and give it the ability to bar “bad actors” from working in senior account managers Zita Doktor, Rob Pierce, Stuart Smilowitz, banking and insurance, among other changes. Debora Stein The governor’s effort to give a powerful regulator even sales coordinator Devin Arroyo, 212-210-0701, [email protected] more power comes as President Donald Trump begins to weak- IS THIS TOWN BIG ENOUGH? The attorney general and the ONLINE governor are at odds over who will keep banks in check. general manager en federal oversight of Wall Street. (The governor has already Rosemary Maggiore, 212.210.0237 engaged in a fight with Trump on the regulatory front, argu- [email protected] CUSTOM CONTENT ing that state authorities instead of the feds should be in charge of overseeing financial startups here.) director of custom content In a Feb. 14 letter, Schneiderman denounced Cuomo’s DFS expansion plan as a “wholly unnecessary overreach.” Patty Oppenheimer, 212.210.0711, [email protected] He said the attorney general’s office, one of Wall Street’s most potent regulators for a lot longer than DFS has been multicultural sales manager Giovanni Perla, [email protected] around, already has the power to bar bad actors and can ably represent the agency in any legal disputes. A day later senior custom marketing manager DFS Superintendent Maria Vullo fired back with a letter of her own, asserting that Schneiderman’s argument was Sonia David, [email protected] EVENTS “premised on unnecessary rhetoric” as well as “a series of factual and legal errors.” www.crainsnewyork.com/events director of conferences & events The power struggle could be decided in the coming weeks during budget negotiations between the Cuomo Courtney Williams, 212.210.0257, administration and the state Legislature. But with the feds looking to drastically dial down regulation, New York [email protected] manager of conferences & events authorities clearly intend to take the lead in watching Wall Street. The only question is, who’s watch will it be? Adrienne Yee, [email protected] — AARON ELSTEIN events coordinator Ashlee Schuppius, [email protected] AUDIENCE DEVELOPMENT director of audience & content Verizon revises Yahoo deal DATA POINT the 20-year old eatery and a redo of its partnership development Michael O’Connor, Verizon plans to pay $4.5 billion for menu. “It was time for a change,” chef 212.210.0738, FOR THE FIRST TIME SINCE 2009, [email protected] Yahoo, $350 million less than it offered Daniel Humm said. CRAIN’S 5BOROS before two security breaches compro- ANNUAL SUBWAY RIDERSHIP www.5boros.com mised more than 1 billion Yahoo users’ Shrinking insurer Irene Bar-Am, 212.210.0133, DECLINED. LAST YEAR THERE [email protected] accounts. The cash deal is expected to In an effort to jettison $1.6 billion in WERE 1.76 BILLION SUBWAY TRIPS, REPRINTS close in the second quarter. costs by the end of this year, AIG re- reprint account executive Krista Bora, DOWN 6 MILLION FROM THE duced its headcount by 15% to 56,400 212.210.0750 Protection money as of Dec. 31. PRODUCTION The NYPD spent $24 million to protect PREVIOUS YEAR. production and pre-press director Simone Pryce President Donald Trump and his fami- Hate crimes spike media services manager Nicole Spell ly and to guard his Fifth Avenue tower The NYPD attributed a 42% increase SUBSCRIPTION CUSTOMER SERVICE for the 10 weeks before Inauguration city. The publication has a paid circula- in hate crime complaints for the 100- www.crainsnewyork.com/subscribe Day. An initial projection was $35 mil- tion of 22.5 million. day period ending Feb. 19 to biases that [email protected] 877-824-9379 (in the U.S. and Canada). lion. It costs $127,000 to $146,000 a day emerged since the election of President $3.00 a copy for the print edition; or $99.95 to protect first lady Melania and son Makeup makeover Trump. — AMANDA FUNG one year, $179.95 two years, for print subscriptions with digital access. Barron, and $308,000 a day when the Ten million Amazon boxes will feature to contact the newsroom: president returns to the city. the Revlon slogan #LoveIn3Words to www.crainsnewyork.com/staff help the cosmetics company appeal to 685 Third Ave., New York, NY 10017-4024 Bridge blowup millennials. Lady Gaga will showcase phone: 212.210.0100 fax: 212.210.0799 Entire contents ©copyright 2017 The governor said parts of the 78-year- Revlon in a music video as part of its Crain Communications Inc. All rights old Kosciuszko Bridge will be demol- first marketing blitz since acquiring reserved. ©CityBusiness is a registered ished this summer to speed up the con- trademark of MCP Inc., used under license Elizabeth Arden last year. Revlon aims agreement. struction of its replacement by seven to to boost annual sales by $2 billion. CRAIN COMMUNICATIONS INC. nine months. The new two-span bridge BOARD OF DIRECTORS will be completed in 2020. The first span Guitar hero chairman Keith E. Crain will open in April. president Rance Crain Mandolin Brothers will become an treasurer Mary Kay Crain, Cindi Crain online shop under a new unidentified senior executive vp, William Morrow Protecting children owner. The 45-year-old Staten Island executive vp, director of strategic operations Chris Crain David Hansell was named commis- store frequented by Bruce Springsteen, executive vp, director of corporate sioner of the city’s Administration for Bob Dylan and other legends had been Folding up its tent operations K.C. Crain Children’s Services, an agency under searching for a buyer since 2015, after Ringling Bros. Circus kicked off its senior vp, group publisher David Klein final performances in the city. The vp/production, manufacturing David Kamis investigation by an independent mon- its founder died and the shop was taken chief financial officer Bob Recchia itor for mishandling cases resulting in over by his wife and two kids. 146-year-old show said it would chief information officer Anthony DiPonio the death of children. shutter due to high operating costs founder G.D. Crain Jr. [1885-1973] Eleven Madison Parked and declining ticket sales. It will chairman Mrs. G.D. Crain Jr. [1911-1996] secretary Merrilee Crain [1942-2012] Senior City-zens Three-star Michelin-rated restaurant perform at Barclays Center through Washington, D.C.–based AARP the Eleven Madison Park will close for the end of this week.

BLOOMBERG NEWS, AP IMAGES Magazine plans to open an office in the the summer June 9 for a renovation of

4 | CRAIN’S NEW YORK BUSINESS | February 27, 2017

P004_CN_20170227.indd 4 2/24/2017 6:43:06 PM AGENDA POLITICS

Uber drivers want tips Petition pushes city to require gratuities option in the company’s app BY MATTHEW FLAMM

ow much e-hail drivers count costs including lease payments drivers are happy with the earn has long been a bone and insurance. company. The issue of pay of contention in the taxi The TLC has always surveyed yel- surfaced with a vengeance industry, or at least since low-cab drivers to help it determine the two years ago, when the NEED A GOOD TIP? Uber is looking to discredit a driver HUber began luring drivers away from cap on how much owners can charge ride-hailing giant cut survey before it is even completed. yellow cabs with the promise that they for a daily or weekly lease. A spokes- fares to spur demand. could gross up to $90,000 a year. man said that because the agency now Drivers complained they Now the question is becoming part issues a universal license, which allows were working harder to make the same Uber’s nearest e-hail competitor, Lyft, of the campaign to compel Uber to drivers to move freely across segments money they used to, while Uber put out includes tipping in its app, as do smaller install an option for tipping in its app. of the industry, including taxis and numbers that showed ridership was up players Juno and Gett. (Via, a car pool– The drivers say they need gratuities to black cars, it seemed time to look at and insisted that drivers were earning like service, does not.) But Uber has al- make a living wage. And they may soon what all drivers were doing. “When more. Hundreds of drivers went on a ways insisted that tips are not “expected have research that backs them up. we’re done we will have a much clearer one-day strike. or required.” The company believes its For the first time since Uber launched look at driver economics,” he said. The drivers guild has been pushing customers prefer it that way. in New York in 2011 and changed the Uber, which typically resists when Uber to install a tipping function almost “Riders tell us that one of the things yellow-cab and black-car landscape for- regulators tinker with its app and its from the moment the group formed they like most about Uber is that it’s ever, the Taxi & Limousine Commission business model, is moving to discred- last May. Uber agreed to recognize the hassle-free,” a spokeswoman said in is surveying e-hail drivers to get an idea it the results before they’re even in. A guild, which is not a union, to improve a statement. “Riders are free to offer of how much money they make. And spokeswoman criticized the TLC’s use strained relations with its drivers and tips, and drivers are welcome to accept the labor group that represents the city’s of SurveyMonkey for its study. relieve some of the pressure from its them, as has always been our policy.” Uber drivers is looking forward to the “Objective data is the bedrock of mounting legal issues. (The company is Getting Uber to adopt a different results as they pressure the company and good policymaking, and studying these now dealing with allegations of sexual approach would be a victory for the the commission to make tipping some- important topics using a method that harassment and a cutthroat corporate guild—and for its drivers, more than thing riders can do without digging into has selection bias and does not capture culture.) Drivers had sued the compa- 10,000 of whom signed the petition. their pockets for cash. basic driver characteristics—such as ny multiple times contending that they “Everyone tips in a yellow cab,” said “We have anecdotal information” demographics and years in the indus- were treated as employees, not as the Sohail Rana, a former yellow-cab and about wages and costs, said Jim try—fails to ensure that the results ac- independent contractors Uber claims black-car driver who has been with Conigliaro Jr., founder of the Indepen- curately reflect the driver community,” they are, and were entitled to overtime Uber for the past three years. He esti- dent Drivers Guild, which is an offshoot she said. She also insisted that “Uber pay and benefits. mated that just a $1 tip for each ride of the international machinists union. NYC strives to offer the best earning Two weeks ago the guild launched a could add a $400 a month to a driver’s “This has been a problem.” opportunity for drivers.” new front in the gratuities fight, peti- pay. “They don’t in an Uber because He added that past statements from Because Uber controls 73% of the tioning the TLC to mandate the tipping they are told by Uber [that] tips are not the company that drivers were netting city’s e-hail market, it offers drivers function. The agency already requires necessary.” as much as $35 an hour were unreli- the most opportunities for customers taxis to include a range of tipping op- The TLC has 60 days to rule on the able because they did not take into ac- in that category. But that’s not to say tions in its electronic payment system. petition’s request. ■

Republican mayoral challenger even though sky bridges could save which has office space in both proper- almost all white. Clarke’s district was commits his first unforced error New Yorkers time and relieve a small ties and on the floors connected by the drawn to favor the election of a minority Republican mayoral hopeful Paul amount of sidewalk congestion. aerial walkway. SL Green passes the candidate per the Voting Rights Act. That Massey took to the steps of City Hall City planners generally frown upon cost of the bridge on to Credit Suisse by demographic engineering put then- last week to “expose Bill de Blasio’s aerial bridges because they block light including the charge in its rent bill. The Councilman David Yassky of Brooklyn historic network of corruption,” as and views. Generally sky bridges have Department of Transportation controls Heights at a disadvantage that he could his press release said. But when a been built to connect two buildings the streets and has regulatory oversight not overcome in the 2006 Democratic Bloomberg reporter asked whether he owned by the same company. of any structures that encroach on or primary against Clarke, who won even supports an expansion of controversial Then there’s the fees and the red tape above it. To calculate the fee an owner though it was revealed that she had not policing tactic stop-and-frisk, Massey that property owners must endure for must pay to maintain a sky bridge the graduated from Oberlin College, despite said he hadn’t “established an answer,” the right to operate them. agency has a formula that takes into giving voters the impression that she a response that Politico’s Azi Paybarah SL Green, one of the largest own- account the length of the span and the had. (Her website still implies that she called “jaw-dropping.” ers of commercial property in the city, value of the properties it connects. graduated on time, not years after her Former de Blasio campaign manag- will appear before city transportation — DANIEL GEIGER election via off-campus courses.) The -ac er Bill Hyers was harsher. “And the time officials March 3 to ask permission to tivism of her district’s new arrivals may of death in the Massey for Mayor cam- continue operating a skyway 100 feet be an opportunity for Clarke. But it also paign is officially 11:35 this morning,” above East 24th Street, between Park What a congresswoman’s town hall increases the risk of another Democrat he tweeted. Hyers has no official role Avenue South and Madison Avenue. says about changes in her district challenging her in 2018. — ERIK ENGQUIST with the 2017 campaign, he said, call- The meeting is something of a formal- ing himself just an “interested heckler.” ity: To operate the skyway, the $11 bil- Rep. Yvette Clarke hasn’t exactly set Republican strategist Jessica Proud lion real estate firm will simply have to the world on fire during her 10 years in shot back that Hyers “might want to pay the city the relatively paltry sum of Congress—her website biography lists check Preet’s watch for what time of death $580,265 over the next decade. no accomplishments in Washington looks like,” a reference to U.S. Attor- The silver, art deco–style sky bridge other than securing funding for local ney Preet Bharara’s investigation of the connecting 1 Madison Ave. to 11 Mad- nonprofits, winning an award and get- mayor’s fundraising. — ROSA GOLDENSOHN ison Ave. was originally constructed ting high grades for her voting record by MetLife, the insurance firm that from interest groups. But the turnout developed and once owned both build- at a town hall hosted by the Brooklyn Half a million dollars for a ings. SL Green bought 1 Madison Ave. Democrat last week was massive, re- more than a decade ago and purchased flecting the extent to which Donald skyway across East 24th Street neighboring 11 Madison Ave. in 2015 Trump’s presidency has motivated pro- Aerial pedestrian bridges that connect for roughly $2.3 billion. gressives to become politically active. two buildings on opposite sides of a In recent years that sky bridge has Another curiosity of the Prospect REP. YVETTE CLARK

JV SANTORE; BLOOMBERG city street remain a rarity in New York, been used by Swiss bank Credit Suisse, Heights event was that the crowd was

February 27, 2017 | CRAIN’S NEW YORK BUSINESS | 5

P005_CN_20170227.indd 5 2/24/17 8:33 PM AGENDA INSTANT EXPERT IMMIGRANT CRACKDOWN BY ROSA GOLDENSOHN

What Trump’s deportation surge means for NY businesses [in 5 steps]

THE PLAYERS More than 1.4 million noncitizens live here, according to the THE ISSUE Migration Policy Institute. That’s more than a sixth of the popula- President Donald Trump 2tion. An estimated 609,000 are undocumented. The number of promised—and is legal residents who risk deportation under the new rules is unknown. rolling out—an aggres- Nearly half of the city’s workforce is foreign-born, including citizens, 1 legal residents, visa holders and the undocumented. Most of the city’s sive deportation program targeting a broad swath of adult immigrants work, and they dominate certain low-paying occupa- undocumented immigrants tions. The Fiscal Policy Institute found that 71% of home health aides as well as some who have and nurses are immigrants, as are 82% of housekeepers and maids, legal status. Many New 70% of construction laborers and 72% of cooks. York City businesses Of those workers, many are undocumented, especially in restaurant depend on noncitizens. and construction jobs; 54% of the city’s dishwashers and 33% of cooks City politicians have drawn are undocumented, a 2007 study from the Pew Hispanic Center found. Trump’s ire for “sanctuary” policies that stifle law enforcement In construction, 32% of laborers are undocumented, as are 33% of cooperation with federal immigration authorities. The city turns painters and maintenance workers. Undocumented immigrants make over only those immigrants it considers a threat to public up about a tenth of safety, arguing that efficient policing depends on immigrants’ the city’s resident being willing to report crimes and serve as witnesses. Trump’s workforce. The tech moves to expand deportation forces—and recent sweeps on sector relies heavily on Staten Island and Long Island—signal a showdown ahead. foreign talent. Gov. Andrew Cuomo and Mayor Bill de Blasio have promised to protect immigrants newly targeted for WHAT’S NEXT deportation, even though Trump has Homeland Security has vowed to cut federal funding to sanctuary cities. The mayor pointed out funding to identify, detain that past court rulings restrict such cuts to just the agencies that don’t 5and deport more than cooperate, and thus only police and anti-terrorism money could be elim- 400,000 immigrants annually, inated—which he intimated Trump would be unlikely to do. The White and did so in 2012. It has 5,800 House has not said whether it will challenge that notion. deportation officers; the new hires would nearly triple that number. Employers, especially in the tech and hospitality industries, also are bracing for a An estimated 54% of YEAH, BUT… revision of the Trump travel ban dishwashers and about that blocked Syrian refugees and The city’s sanctuary laws do not prevent Immi- citizens of seven Muslim-major- one-third of cooks, gration and Customs Enforcement officers ity countries from entering the construction laborers, 3 from carrying out operations. In accordance United States. But Homeland maintenance workers with its sanctuary detainer policy, the city did not turn Security Secretary John Kelly, over to the federal agency an 18-year-old Salvadoran trying to tamp down fears set off and painters in the national jailed at Rikers Island. But after his release by his directives, said last week, city are undocumented Feb. 16 and without the city’s cooperation, ICE “Let me be very clear. There arrested him and began deportation proceedings. will be no—repeat, no—mass immigrants deportations.”

SOME BACKSTORY During his campaign and after his election, Trump at times vowed to deport all immigrants lacking legal status and other times said he would target only 4the dangerous criminals among them. His Jan. 25 executive order prioritized the deportation of all undocumented immigrants who have “committed acts that constitute a chargeable criminal offense” or “in the judgment of an immigration officer otherwise pose a risk to public safety,” among other categories. Anyone who avoided immigration screening also was marked for removal. Department of Homeland Security memos released last week further detailed the plans, which include the hiring of 10,000 additional ICE officers nationwide. BLOOMBERG NEWS, NEWSCOM

6 | CRAIN’S NEW YORK BUSINESS | February 27, 2017

P006_CN_20170227.indd 6 2/24/2017 1:37:31 PM AGENDA HEALTH CARE

Small businesses might lose custom health plans Park Slope Food Coop is among hundreds of self-insured employers that could be forced to join the commercial market BY CAROLINE LEWIS

aced with rising premiums in include companies with 51 to 100 em- the group health insurance ployees, the law had largely gone un- market, the Park Slope Food noticed, said Michael Ferguson, chief Coop opted five years ago to operating officer of the Self-Insurance Fcreate a custom plan for its 74 full-time Institute of America. “In the under-50 employees and their family members market, not a lot of companies are and pay their medical costs directly. self-insuring,” he said. “I’m convinced we would have had The deadline for employers of 51 to PASSING ON THE SAVINGS: Being able to self-insure employees has helped the food to raise prices if we weren’t self-in- 100 people to give up their self-insured co-op save money, thus allowing it to keep prices low for its customers. sured,” said Joseph Holtz, the store’s coverage was extended from 2016 to general manager, who estimates self-in- 2018. Legislation that would perma- surance saves the co-op $300,000 to nently grandfather them in has stalled is among those hoping to continue to its plan and has resulted in fewer bur- $500,000 per year in premiums. in Albany. self-insure. If no solution is found, the dens on employees, said Giffen. The co-op is one of several hundred organization said it will join the small- For instance, he said, the plan allows New York employers that will be forced More flexibility group market when its plan expires in employees to bypass step therapy, or to stop self-insuring next year, thanks The state Department of Financial November 2018. the process of trying less costly drugs to a change in the state’s definition of a Services declined to comment on the “We could probably get a plan that first, when accessing medication. It also small business. Small businesses, until rationale for denying small businesses provides similar coverage for a simi- aims to keep down the cost of visiting recently defined as having between one the ability to self-insure. According to lar amount of money,” said Dave Giff- out-of-network providers. and 50 employees, are not eligible to The Commonwealth Fund, if employers en, the coalition’s executive director. “At an organization like this, where purchase so-called stop-loss insurance, with 51 to 100 employees self-insure in However, he added, the organization we’re perpetually understaffed and ask- which kicks in when health care costs large numbers, they could undermine wouldn’t be able to “share in the up- ing people to work long hours in a very exceed a certain threshold. Without that the risk pool of the small-group market, side” if employees use less health care difficult job, we want to make sure they safeguard, self-insurance is too risky. leaving it with older, sicker beneficiaries. than anticipated. have not just adequate health coverage Until the state expanded its defi- The Coalition for the Homeless, a Self-insuring has allowed the orga- but generous health coverage,” said nition of a small business last year to nonprofit with 65 full-time employees, nization more flexibility in designing Giffen. ■

State calls out insurers on DFS did not release the names of the Frontier partners with physician- contraceptive coverage insurers it investigated, saying it aims owned surgery centers, providing ad- to work with them to correct any prob- ministrative services while taking Some New York health plans are not lems. “Once we get to the next step, you small-equity stakes in the centers. It giving members accurate information may see that coming,” a DFS spokes- has the largest portfolio of gastroenter- about their contraceptive coverage, ac- woman told Crain’s. ology ASCs in the state, and its centers cording to an investigation by the state’s — CAROLINE LEWIS AND JONATHAN LAMANTIA perform more than 100,000 procedures Department of Financial Services. a year, Roy Bejarano, president of Fron- The department said it conducted tier Healthcare, said in June. an undercover sting operation seeking Frontier to sell stake in 10 ASCs The price of the ownership stakes information about contraception bene- were not disclosed. Bejarano will no fits from 15 health plans and found that Frontier Healthcare Holdings, which longer be a managing member of the 11 were misleading consumers. manages 15 ambulatory surgery cen- entity that owns a minority stake in “New York law mandates that con- ters in New York and New Jersey, is the centers, according to the filings. He rally last week in the Bronx, where Gov. traceptive coverage must be available selling its minority ownership stakes in declined to comment. A spokeswoman Andrew Cuomo (above) drew enthusi- with no copayments, deductibles or 10 New York surgery centers to Physi- for Physicians Endoscopy did not re- astic cheers from the crowd. out-of-pocket costs, and also requires cians Endoscopy, according to certifi- spond to a request for comment. —J.L. Gresham has emerged as a close that [the insured] are provided accu- cate-of-need applications filed with the Cuomo ally, working in tandem with rate information about their rights to state Department of Health. the governor last year to support a this coverage,” Superintendent Maria It appears as if the two sides are Union head prepares $15 minimum wage. Cuomo defended Vullo said in a statement. headed toward a merger or acquisition, for Obamacare repeal Obamacare and described New York’s Some insurers are telling people though Crain’s could not confirm that health care industry as an “economic they have to share the costs of contra- with either side. As President Donald Trump and Re- engine” for the state. The event at the ception or saying that a certain drug or Physicians Endoscopy, based in publicans in Washington consider a re- Albert Einstein College of Medicine device isn’t covered, according to DFS. Jamison, Pa., manages more than 40 peal-and-replace plan for the Affordable was organized in part by the union, The state Health Plan Association freestanding, single-specialty endo- Care Act, the state’s health industry and which has 400,000 members in New characterized the report as unfair to scopic surgery centers in 14 states, in- political leaders say changes to the law York, New Jersey, Massachusetts, insurers. The requirement that plans cluding nine centers in New York. The could lead to a Trump Tower–size hole Washington, D.C., and Florida. cover at least one form of contraception pending deals would more than double in New York’s budget—an estimated Instead of seeking promises from for each of the 18 FDA-approved meth- the company’s presence in the state. In $3.7 billion, according to the state—and hospitals that jobs won’t be cut if ods “opens the door for miscommu- each of the company’s 10 applications, could hurt the area’s robust health care Obamacare disappears, Gresham said nication and possible errors during a Barry Tanner, chief executive; Karen workforce. he’s focused on the shift in care from complex transfer of information,” Paul Sablyak, chief financial officer; and “There’s no question that if the sys- hospitals to outpatient offices, surgery Macielak, HPA’s president and chief Frank Principati, chief operating offi- tem goes under, if the system begins centers and urgent-care clinics. executive, said in a statement. “We do cer, are requesting state approval to be- to tank, immediately hospitals balance “Rather than us fighting to make not believe that a series of a few calls come members of Frontier Healthcare budgets,” George Gresham, president sure we’re employed, we’re fighting to to plans’ member services departments Associates LLC, which controls small of 1199SEIU United Healthcare Work- make sure that the newly created jobs constitutes an ‘undercover sting’ inves- stakes in the 10 centers. Frontier’s owners East, the state’s largest health care are ours and the training for those jobs

GETTY IMAGES, AP IMAGES tigation,” he added. ership stakes range from 0.67% to 8%. union, said in an interview after the is ours,” he said. —J.L.

February 27, 2017 | CRAIN’S NEW YORK BUSINESS | 7

P007_CN_20170227.indd 7 2/24/2017 1:39:25 PM AGENDA SPOTLIGHT SMALL BUSINESS

What so many chefs FOODIE FASHIONISTAS: McCrery and Goodman found their sweet spot are wearing this season by combining form and function for restaurant Tilit’s recipe is selling directly to the kitchen BY CARA EISENPRESS staffers.

hef’s whites look professional on the outside, but when worn, they can be ill-fitting and feel hot, problems Jenny Goodman and Alex McCrery set out to fix in 2012. Their remedy was Tilit, a line of functional, fashionable cooking clothes designed on the Low- er East Side, produced in Midtown and worn at more than 200 Crestaurants and hotels in New York City and beyond. The name is a play on the word utility; while some of the styles look like weekendwear, they are work clothes engineered for busy chefs. The husband-and-wife duo, veterans of the restaurant industry, started out selling waxed-cotton aprons and stain-resistant coats to individual chefs out of Tilit’s showroom and on its website. The prices cover the cost of fabricating in New York while keeping the clothes affordable. Shirts and coats range from $45 to $115, and Tilit’s standard aprons are $85. McCrery, the designer, used to be a chef. Throughout his career, he hated the way the typical whites fit. When he left restaurants to become a private chef, wearing his formal uniform in a home kitchen or on the street made him feel ridiculous. “I thought I should “I thought that at the height of my career I should feel proud of what I was doing and feel proud of what I that should be reflected in the clothes,” he said. Tilit’s styles take cues from current was doing and that trends, but they are lightweight in order to should be reflected keep cooks cool. They’re also stain-repellent and able to withstand many washes. in the clothes” Seven months into selling to individ- uals, Tilit received an order for custom aprons from the chefs at Contra, a restaurant on the Lower East Side. “That’s when we thought, Oh, we should be selling direct to restaurants,” said Goodman. “New York has 20,000 restaurants,” added McCrery. “There’s a lot of potential.”

Style matters More restaurants invested in Tilit’s clothes for their functionality and style. “The restaurant world is moving more and more to open kitchens,” said Gil Avi- tal, general manager for Seamus Mullen’s Tertulia and El Colmado outposts, where staff including the waiters and the sous chefs wear the company’s custom aprons and jackets. “When you are working in an open kitchen, you need to look presentable and fashionable. It’s part of the look of the restaurant.” Although men make up the majority of the culinary workforce, Tilit offers a line tailored to women. “In the past women’s coats were generally just a smaller men’s coat or they were really bad pink polyester numbers,” said McCrery. Among the company’s competitors are several apron makers that sprung up around the same time for the same reasons. What distinguishes Tilit, however, is its attention to seasonal fashion trends, McCrery said. And his industry connec- tions have helped him capture trendy restaurants such as EmpellÓn Cocina in the East Village and Soho House locations on both sides of the Atlantic. Industry leaders adopted the clothing almost as soon as they heard about it. “When Alex was starting out, in an interview someone asked him who he’d like to see wearing his chef jackets, and he mentioned me!” Mullen said. “I’ve been wearing Tilit exclusively in the kitchen ever since.” The company has begun to work with hotels, outfitting housekeeping and maintenance teams at The Standard and the 1 Hotel Brooklyn Bridge. Tilit is also pushing into streetwear, first with a butcher’s coat and next with a worker’s style. Just under half of Tilit’s revenue now comes from business sales; the rest is FOCAL POINTS from direct-to-consumer e-commerce. Pants, aprons and chef shirts are the company’s best-sellers, shipping out at a rate of 500 units a month and pushing total revenue to well above $1 million, up 50% in the 12-month period that end- NAME Tilit ed in October. Besides the $100,000 they won in a 2015 small-business contest INDUSTRY Apparel run by Chase, Goodman and McCrery have no outside investors. The winnings FOUNDERS Jenny Goodman, COO; Alex McCrery, designer allowed them to buy more supplies so customers didn’t have to wait six weeks for popular items. “We were losing out on sales,” said Goodman. Tilit now has LAUNCHED 2012 13 employees and is looking to hire one more. LOCATION Lower East Side and the Garment District To make the clothes in the city, Goodman and McCrery say they spend two MAJOR INVESTORS None and a half times what it would cost to manufacture overseas. By selling directly to customers, they’ve been able to sustain margins at about 55%. The pair is commit- REVENUE More than $1 million ted to staying here for convenience, quality control—it’s easy to check on items at ANNUAL GROWTH RATE 50% a local factory—and shorter lead times. Plus, they say, locavore chefs like knowing EMPLOYEES 13, soon to be 14 their uniforms come from nearby. “Consumers and chefs want to know where food is from,” said McCrery. WEBSITE tilitnyc.com

BUCK ENNIS “Wanting to know where clothes are from goes along with that.” ■

8 | CRAIN’S NEW YORK BUSINESS | February 27, 2017

P008_CN_20170227.indd 8 2/24/2017 1:41:05 PM AGENDA VIEWPOINTS

Risky budgeting returns to New York politics City and state face slowing economy and federal cuts

GOVERNMENT BUDGETS add $1 billion to this year’s, bringing the chances of a significant reduction The spending plans are always a guess- the city’s spending to $84.7 billion, in aid to the state and city are higher ing game. How much almost $15 billion more than Michael than ever. State Comptroller Thomas to be adopted will be will come from taxes? Bloomberg’s last effort four years ago. DiNapoli says $54 billion of the state’s precarious at best. Is spending accu- Here’s what can go wrong. budget comes from the feds. That’s $1 rately projected? Will Odds are tax revenue will fall short. of every $3. The city now gets about Unfortunately, rare is unforeseen circum- Collections have come in $7 billion from Washington— the politician who is stances ruin the plan? below projections in recent roughly 8% of its budget but GREG DAVID In that sense, both months, and a clear slowdown % still a significant amount. able to admit that New York state and in the city economy in the Health care could change city have managed their finances well fourth quarter seems likely to the entire equation. No one 33FEDERAL funds’ in recent years. An improving economy exacerbate the problem. State knows what President Don- Some might say all those things has boosted tax revenue more than tax revenue is running at 1% share of the ald Trump’s vow to repeal and won’t go wrong. The state has accumu- expected, and nothing too dramatic has behind last year’s pace. state budget replace the Affordable Care lated some reserves, and the city’s even changed the numbers. Federal tax reform could Act means. It is pretty clear larger cushion could handle one or But the days of easy budgets are over. worsen the problem. If a plan that conservative Republicans two of the eventualities. Federal bud- The plans to be adopted by the state by to cut taxes gains momentum in Wash- just want to repeal it in order to pare get changes might be phased in over April 1 and the city by July 1 will be pre- ington, many people will delay selling the social safety net. Cuomo and others several years, especially Obamacare carious at best. Unfortunately, rare is assets in hopes that the capital gains have said they will ensure New York- reform, and the economy might pick the politician who is able to admit that. tax will be reduced. That would cause ers don’t lose coverage, but the cost to up again. Start with the numbers. Gov. Andrew a major shortfall in income taxes that do that could be substantial. The state But the risks are big. And, unfortu- Cuomo’s proposal increases state spend- could be made up only after tax changes says it’s at risk of losing $3.7 billion and nately, too many politicians are willing ing by 3.8% to $162.2 billion, and leg- take effect. counties, $600 million. The state also to take them. ■ islators are almost certain to push that Federal aid has become a big ques- would have to decide whether to pick figure higher, especially for education. tion mark. With Republicans in con- up federal subsidies for those purchas- GREG DAVID blogs regularly at Mayor Bill de Blasio’s new budget would trol of the White House and Congress, ing insurance on the exchange. CrainsNewYork.com.

Park-rich boro needs trains more than green space Reactivate a rail line in a Queens transit desert BY GENE FALIK AND RICK HORAN

ood transportation is the transportation for generations to come. lifeblood of any city, and Queens is already park-rich. It is also New York is certainly no commonly described as a transit desert. exception. If people can- Ironically a section of this irreplaceable Gnot get to employment and recreation right-of-way goes through Forest Park. opportunities safely and efficiently, we To put this in perspective, QueensRail will work less and play less—harming is only 47 acres, while Forest Park itself our quality of life and society itself. is 538 acres—in a city that boasts nearly Yet some people are suggesting that 30,000 acres of parkland. Other major a 3.5-mile former Long Island Rail Queens parks include Crocheron, Alley HIDDEN TREASURE: A subway line here would be relatively easy and inexpensive to build, the authors say. Road line between Pond, Cunning- Ozone Park and Rego ham and Flushing Park not be rebuilt The right-of-way Meadows. welded track, vibration-absorbing ties the southern half of the borough to and incorporated into is only 47 acres Forgive our and acoustic barriers, trains also can Midtown, or even to central or north- the subway system skepticism, but be a good neighbor—while raising ern Queens. QueensRail can reduce but instead be used as and passes through we can’t help but property values along their routes. travel time on many routes by more a park. think that advo- Projects like QueensRail can be than 30 minutes. We could not dis- a 538-acre park— cacy for a bike built relatively easily and inexpen- We are optimistic that the MTA agree more. in a city boasting and pedestrian sively because the right-of-way already study will confirm the positive impact The Metropoli- project called exists. Besides saving millions of hours this connection will have on Queens tan Transportation nearly 30,000 acres QueensWay is not each year in commuting time for resi- and on the city as a whole. Although Authority is studying of parkland so much about dents and visitors, it will help achieve we love parks, residents and elected the benefit and cost of a park as about many of the city’s stated transportation officials have to choose between rebuilding the unused blocking a needed goals, such as getting people out of rebuilding this crucial rail link or Rockaway Beach Line, rail connection. cars and into trains as well as reducing copping out and losing the chance for- which we call QueensRail, on the right- If New York is going to remain a pollution and energy consumption. ever. Let’s not blow it. ■ of-way, which amazingly is still intact world-class city, we must look long term Pedestrian and bicycle safety will be after more than 50 years. Replacing this and invest in our transportation infra- enhanced as more drivers choose mass Gene Falik and Rick Horan vital rail connection between southern structure. If we don’t, we will lose both transit and leave their cars at home. are members of the Queens Public Queens and the rest of the city is a once- residents and visitors to cities where Queens residents have the longest Transit Committee and the Coalition in-a-lifetime opportunity that will uti- getting around is easier. Using mod- average commute times in the nation. for QueensRail, both nonprofit

KEVIN LEE FOR INHABITAT lize an existing asset to improve public ern technology such as continuously It can take up to two hours to get from advocacy groups.

February 27, 2017 | CRAIN’S NEW YORK BUSINESS | 9

P009_CN_20170227.indd 9 2/24/2017 1:47:00 PM AGENDA THE LIST COSTAR’S TOP MANHATTAN OFFICE LEASES Biggest Manhattan transactions in 2016, ranked by square feet

TENANT LANDLORD(S)/ LANDLORD/SUBLANDLORD ADDRESS SQUARE FEET TENANT REPRESENTATIVE(S) SUBLANDLORD(S) REPRESENTATIVE(S) SUBMARKET 1 55 Water St.1 900,027 McGraw Hill Financial Inc. CBRE Retirement Systems of Alabama CBRE Financial District 2 1285 Sixth Ave.1 890,861 UBS Group CBRE RXR Realty; China Life Insurance Group; RXR Realty Columbus Circle David Werner Real Estate 3 10 Hudson Yards1 694,396 Coach Inc. CBRE The Related Cos.; Oxford Properties CBRE Penn Plaza/Garment District 4 1745 Broadway1 683,743 Random House Inc. Cushman & Wakefield SL Green Realty Corp. SL Green Realty Corp. Columbus Circle 5 1271 Sixth Ave.2 417,943 Major League Baseball CBRE The Rockefeller Group The Rockefeller Group; CBRE Grand Central 6 222 E. 41st St.2 389,892 NYU Langone Medical Center Cushman & Wakefield Columbia Property Trust CBRE Grand Central 7 220 E. 42nd St.2 308,000 Visiting Nurse Service of NY Cushman & Wakefield SL Green Realty Corp. Cushman & Wakefield Chelsea 8 57 11th Ave.2 263,835 Google CBRE Port Authority of New York and New Jersey RXR Realty Penn Plaza/Garment District 9 550 W. 34th St.2 257,557 Milbank, Tweed, Hadley Cushman & Wakefield The Related Cos.; Oxford Properties Group; The Related Cos.; CBRE World Trade Center & McCloy Mitsui Fudosan 10 90 Church St.1 256,616 New York state government CBRE Boston Properties Boston Properties Grand Central 11 220 E. 42nd St.1 243,414 Omnicom Field Real Estate SL Green Realty Corp. Cushman & Wakefield Grand Central 12 90 Park Ave.2 241,196 PwC CBRE Vornado Realty Trust Vornado Realty Trust Plaza District 13 425 Park Ave.2 211,400 Citadel Investment Group CBRE L&L Holding Co.; GreenOak Real Estate L&L Holding Co.; CBRE Plaza District 14 399 Park Ave.3 210,934 Starr Cos. Cushman & Wakefield Boston Properties CBRE Penn Plaza/Garment District 15 1095 Sixth Ave.2 210,496 Salesforce.com Inc. Cushman & Wakefield MetLife; Ivanhoe Cambridge; Cushman & Wakefield Times Square Callahan Capital 16 1221 Sixth Ave.1 207,371 Dentons CBRE Invesco Ltd. Cushman & Wakefield Grand Central 17 390 Madison Ave.2 206,720 Hogan Lovells US Newmark Grubb Knight Frank Clarion Partners L&L Holding Co. Plaza District 18 919 Third Ave.2 204,442 Bloomberg CBRE SL Green Realty Corp. SL Green Realty Corp. Gramercy Park 19 225 & 233 Park Ave. South2 200,668 Facebook Wixen Real Estate Inc.; Orda Management; TF Cornerstone Newmark Grubb Knight Frank Plaza District Colliers 20 645 Fifth Ave.1 195,563 National Basketball CBRE Oxford Properties Group; Oxford Properties Group; CBRE Times Square Association Crown Acquisitions Inc. 21 1166 Sixth Ave.1 195,375 D.E. Shaw & Co. CBRE RXR Realty; The Blackstone Group JLL Plaza District 22 731 Lexington Ave.1 192,314 Bloomberg CBRE Alexander’s; Vornado Realty Trust Vornado Realty Trust Gramercy Park 23 11 Madison Ave.1 186,396 Credit Suisse AG CBRE SL Green Realty Corp. Newmark Grubb Knight Frank City Hall 24 375 Pearl St.2 182,750 New York City Department Cushman & Wakefield Intergate Manhattan CBRE Penn Plaza/Garment District of Finance 25 550 W. 34th St.2 182,447 Point72 Newmark Grubb Knight Frank The Related Cos.; Oxford Properties Group; CBRE Chelsea Mitsui Fudosan 26 85 Tenth Ave.1 171,355 General Services Direct deal Vornado Realty Trust; Vornado Realty Trust; Columbus Circle Administration The Related Cos. The Related Cos. 27 80 West End Ave.2 163,500 Lighthouse Guild CBRE F.M. Ring Colliers International Penn Plaza/Garment District 28 400 W. 33rd St.2 160,625 National Hockey League CBRE Brookfield Office Properties Inc. Cushman & Wakefield Plaza District 29 12 E. 49th St.2 159,306 WeWork Direct deal Kato International Kato International Plaza District 30 304 E. 45th St.1 144,894 United Nations Cushman & Wakefield 304 E 45 LLC Colliers International Times Square 31 1221 Sixth Ave.2 143,331 Endurance Specialty Holdings George Comfort & Sons Invesco Ltd. Cushman & Wakefield Times Square 32 4 Times Square2 141,223 SS&C Technologies JLL The Durst Organization The Durst Organization Financial District 33 17 State St.3 139,642 IPsoft Cushman & Wakefield RFR Realty JLL Chelsea 34 162 Fifth Ave.2 137,737 Simons Foundation Cushman & Wakefield ABS Partners Real Estate ABS Partners Real Estate World Trade Center 35 4 World Trade Center2 131,876 Zurich American Insurance Co. JLL Silverstein Properties Silverstein Properties Inc.; CBRE Plaza District 36 299 Park Ave.1 124,069 UBS Group CBRE Fisher Brothers Management Co. Fisher Brothers Management Co. Plaza district 37 75 Rockefeller Plaza2 124,063 Merrill Lynch CBRE RXR Realty; Walton Street Capital Cushman & Wakefield Grand Central 38 90 Park Ave.1 122,525 Alston & Bird CBRE Vornado Realty Trust Vornado Realty Trust Penn Plaza/Garment District 39 2 Herald Square2 122,057 WeWork CBRE Sitt Asset Management Cushman & Wakefield Grand Central 40 420 Lexington Ave.3 114,709 New York Life Insurance Co. JLL SL Green Realty Corp. SL Green Realty Corp. Plaza District 41 399 Park Ave.2 110,025 Morgan Stanley Cushman & Wakefield Boston Properties CBRE Penn Plaza/Garment District 42 350 Fifth Ave.3 108,937 Shutterstock Newmark Grubb Knight Frank Empire State Realty Trust Empire State Realty Trust Harlem/northern Manhattan 43 132—136 W. 125th1 105,323 New York City Human JRT Realty Group; Enterprise Asset Management Enterprise Asset Management Grand Central Resources Administration Cushman & Wakefield 44 100 Park Ave.1 103,803 Wells Fargo Capital Finance Direct deal SL Green Realty Corp.; PGIM Real Estate SL Green Realty Corp.; Murray Hill Cushman & Wakefield 45 180 Madison Ave.2 100,002 New York University Cushman & Wakefield The Clarett Group CBRE Chelsea 46 430 W. 15th St.2 100,000 Live Nation Newmark Grubb Knight Frank Palantir Technologies Newmark Grubb Knight Frank Plaza District 47 575 Madison Ave.2 97,668 Douglas Elliman Realty Douglas Elliman Commercial; Steinberg & Pokoik Management Corp. Steinberg & Pokoik Financial District Newmark Grubb Knight Frank Management Corp. 48 55 Water St.2 97,417 QBE North America JLL Retirement Systems of Alabama Cushman & Wakefield Times Square 49 4 Times Square2 95,000 RSM US Savills Studley The Durst Organization The Durst Organization Columbus Circle 50 142 W. 57th St.2 93,516 WeWork JLL L&L Holding Co. L&L Holding Co. Penn Plaza/Garment District The list includes leases with terms of more than two years. 1-Renewal. 2-New lease. 3-Renewal and expansion. CoStar Group Inc., a provider of information services to the U.S. and U.K. commercial real estate industries, offers a comprehensive verified database of commercial real estate information in the U.S. and U.K. For more information, visit costar.com or call (877) 7-COSTAR.

10 | CRAIN’S NEW YORK BUSINESS | February 27, 2017

P010_CN_20170227.indd 10 2/24/2017 1:48:19 PM WE BELIEVE THE CLIENT GIVES EVERY INVESTMENT PURPOSE. EVERY PROPERTY A SOUL. EVERY TRANSACTION A PULSE.

Real estate is a powerful asset. It helps define the business of a company. The spirit of a startup. The values of an investor. We’re 43,000 employees in over 60 countries, helping our clients put ideas into action. Across industries. Within

budgets. And without fail. What can we do for you? cushmanwakefield.com/action

IDEAS INTO ACTION

CNYB FP.indd 1 2/21/2017 11:58:56 AM REAL ESTATE| TV TOWN

STUDIOS’ NEXT ACT Pioneering soundstages in Queens fter nearly 60 years building sets for the Pictures studios to the well-located but down-on- are seeing a return on their film and TV industry, LeNoble Lum- its-heels Los Angeles suburb. Today, spurred by a ber decided to shutter its Hell’s Kitchen boom in film and TV production, Kaufman Asto- real estate investments as facility and set up shop in Long Island ria and Silvercup studios have upped their invest- residential development booms City. Like many of the businesses cur- ments in once-forlorn areas of western Queens that Arently flocking to the area, the firm wanted to be have helped attract small businesses, restaurants closer to the two production studios that have been and arts groups making the neighborhoods more fixtures in western Queens for decades. Now, on top attractive residential destinations. Their influence, BY MIRIAM KREININ SOUCCAR of a booming production enterprise, those same combined with the city’s rezoning efforts, are caus- studios are helping usher in a new wave of commer- ing the communities to be transformed by an influx cial and residen- of young couples tial development. and families. “Studio pio- “IT’S THE NEW YORK “This neigh- neers, like Silver- borhood used to cup and Kaufman PRODUCTION VERSION OF be full of vandal- Astoria, clearly FIELD OF DREAMS: THEY ized buildings,” provided the im- said Hal Rosen- petus to make BUILT IT AND WE CAME” bluth, president this area the hub of Kaufman As- of New York pro- toria. “Our goal ductions,” said wasn’t just to Matt Dienstag, co-owner of LeNoble. “It’s the New build a movie studio. It was to revitalize a neigh- York production version of Field of Dreams: They borhood using the studio as a base.” built it and we came.” That New York story bears close resemblance Daily workers to a tale that played out 20 years ago in California, The studios’ fortunes started to improve in 2004, when Sony Pictures served as the linchpin in the when the state implemented a tax incentive to spur

BUCK ENNIS renewal of Culver City by moving its Columbia film and TV production, a pot of money that has

12 | CRAIN’S NEW YORK BUSINESS | February 27, 2017

P012_P014_CN_20170227.indd 12 2/24/2017 5:14:43 PM P012_P014_CN_20170227.indd 13 popular Australian café Toby’s Estate Coffee opened ter big lunches for crews,” the he said. Schindler. “We day all get from calls Silvercup to- ca business from studio, the said chef and owner Alex opened sixyears ago and gets roughly 20%of its restaurants. increased foottically traffic local storesfor and crew members working for studios, the have dras- looking to expand. to Long Island City five years ago, and ness. Another prop house, Prop NSpoon, moved foot building near Silvercup to house her prop busi- Bieler left WestChelsea bought and a95,000-square- nesses that support industry. film the In 2013 Suri day.every paid union workers, into flooding the neighborhood and production assistants, many of whom are well- writers, costume and designers, location set scouts studio executives say. Thattranslates thousandsto of and 400people work on atypical television series, filming at nearby Kaufman Between 200 Astoria. Secretary dame tainment. cording to Mayor’s the Office ofMedia and Enter oughs, a 13% increase from previousthe year, ac- the filming in five are series bor 52prime-time TV 300 movies were shot state inthe last year, and there since grown to $420 million annually. More than of Blue of In early first February the Queens branch theof LIC Market, an two blocks eatery from Silvercup, Employees of businesses, those along with the That a magnetbeen activity has forbusi- ancillary Among shows the shooting at Silvercup are Ma , Orange Is the Affair New BlackThe and , Quantico HOLLYWOOD EAST: the area. and businessesto workers Astoria Studioshasattracted and Divorce and CONTINUEDONPAGE 14 Shades Shades , while Kaufman Kaufman LeNoble is are are

- - - café and Kaufman AstoriaStudiosincludeSweet Scene Harrison condosareslatedtoopenthisyear.Harrison Studios, Toby’s EstateCoffee justopened, andThe development next toTheMarx.AroundSilvercup December. Anas-yet-unnamedrentalbuildingisin a lease;andTheMarxcondos, whichopenedin RioultDanceNY,the lastyear; whichjustsigned MAP TOTHESTARS TH E N E W WeWork StudioSquare, whichopenedin A CTO R S on thescenearound February 27,2017 |

C RA IN’S N E W Y O R K BU SIN E SS 2/24/2017 5:15:19 PM |

STEVEN SALERNO REAL ESTATE | TV TOWN

on Jackson Avenue, a few blocks from Silvercup. DEMAND PERFORMANCE And Eleni Goros opened a café called Sweet Scene near Kaufman Astoria in August. VIEWERS HOOKED ON HANNAH and her group of self-involved 20something friends might be “The studio being here is obviously a huge plus,” sad that the HBO series Girls is ending. But when the show’s final-season premiere aired on Feb. 12, she said. “There has been a much younger crowd most of the crew members who had worked on it for the past six years were likely too busy to notice. moving into the neighborhood and young families Girls, which will air its last episode on April 16, wrapped filming at the end of September. With- a s w e l l .” in days the 125-person crew of set decorators, location scouts, costumers and other artisans had already taken on new jobs. Even the soundstage where Girls filmed at Silvercup Studios was quickly Larger forces booked up by its next tenant, Divorce, an HBO show starring Sarah Jessica Parker. Those families have been attracted to the area Crew members from Girls say the job market in their industry today is nothing like it was back in by a seismic change in the residential market that 2010, when the show’s pilot was shot. The combination of the state’s tax credit and the influx of new also has benefited the studios. Over the past decade players in television production such as Netflix and Hulu has created a workers’ market for below-the- rising real estate prices in Manhattan and Brook- line jobs. The number of pilots shooting in New York this spring hasn’t been released yet, but based lyn have funneled renters, buyers and developers to on what insiders are seeing so far, they say it could set a record. Long Island City, part of which was rezoned in 2001 “Anybody who is not working now is not working by choice,” said Ilene S. Landress, the show’s executive producer, referring to the roughly 130,000 unionized crew members working on local pro- to allow for massive apartment towers that could be ductions. And they aren’t the only city workers benefiting from the filming boom. built more cheaply there than elsewhere. Girls was a boon for many neighborhood businesses. Throughout its six years the production spent And built they were. Since 2007 around 11,000 more than $38 million units have been constructed, and 24,000 more are on at more than 2,000 the way. Astoria’s relative cheapness and proximity local vendors, such as to Midtown also has made it attractive to residents Mutual Hardware, Tri- priced out of other neighborhoods. beca Office Supply and Because of all the activity, real estate prices are LIC Market, according skyrocketing. The average price per square foot to HBO. On-location of residential space in the part of Astoria around shoots made desti- Kaufman has jumped roughly 35% to $1,050 in the nations out of nearby past two years, according to Eric Benaim, chief exec- Brooklyn establish- utive of Modern Spaces, a real estate brokerage and ments like Speedy Ro- marketer specializing in Long Island City and Asto- meo and Café Grumpy, ria. In the Court Square area near Silvercup, the av- where fans now come erage rent has increased to around $1,300 per square to take pictures. foot from about $1,000 two years ago. “We tried to find In several cases the studios are spearheading resi- locations that felt real dential development. In addition to expanding their to the characters,” said own facilities, Silvercup owners Alan and Stuart production designer Suna are spending $80 million to build The Harri- LOCAL SPOTS IN THE SHOT: Area businesses, such as Café Grumpy, Matt Munn. “That son, a 27-story condominium—the pair’s second in starred in Girls alongside actors could be done only in the area in the past few years. It won’t be finished Lena Dunham and Alex Karpovsky. New York.” — M.K.S. until June, and there isn’t even a model apartment available to view, but 60% of the units have already sold. George Kaufman, owner of Kaufman Astoria, dent of Volmar, “and the neighborhood is a good and that have facilities or service that industry will be is behind the boutique condo across the street, The safe place to live.” imperiled.” Marx. Five weeks after its December opening, its Industry executives are hopeful that the Legis- 33 apartments were sold out—many having gone Will it last? lature in March will pass a three-year extension of through bidding wars. Despite the boom, studio executives caution that the annual tax break—which would take it through Next to The Marx, Valyrian Capital and Volmar their success—and that of the burgeoning neigh- 2022—as part of Gov. Andrew Cuomo’s budget. Construction are developing an 8-story, 64-unit borhoods around them—is not completely in their Still the neighborhoods’ growth continues at a fast building with underground parking, where apart- control. pace. On Feb. 2 Kaufman Astoria broke ground on ments will rent for $2,400 to $3,400 a month. It is slat- “If the New York state film and TV tax credit pro- two new soundstages at the corner of 34th Avenue ed to open at the end of the year. “The studios were an gram goes away, so does at least 80% of the film and and 36th Street—which will add more than 24,000 attraction,” said Peter Volandes, executive vice presi- TV business,” said Alan Suna. “All of the businesses square feet of studio space. Last month it paid $24 million for a 50,000-square-foot commercial building at 35-01 36th St., across from the studio’s open- air movie lot. Kaufman Astoria plans to double its size and rent out the space to production companies, arts groups and others. In June the studio paid $45 million for another nearby commercial building that houses a United Artists multiplex. A new WeWork branch, WeWork Studio Square, which opened a year ago, is the latest development to meet the needs of movie and TV production surrounding Kaufman Astoria: offices for creative types to collaborate on projects that might one day end up on the silver screen. “The area already had a coolness factor, but with WeWork coming in, it now has a kind of cool tech vibe,” said Benaim of Modern Spaces. Tristine Skyler, a producer and screenwriter working on a project with Scarlett Johansson, started renting an office from WeWork Studio Square in October. Skyler lives in Manhattan and said there are two WeWork locations just a few blocks from her apartment, but she wanted to be in the creative ACTION! Silvercup Studios environment growing around Kaufman Astoria. brings out midafternoon foot traffic in an otherwise “They’ve created a contagious energy, and my desolate area. productivity has soared,” Skyler said. “It’s New York’s version of Culver City.” ■

BUCK ENNIS, JESSICA MIGLIO/HBO Additional reporting by Joe Anuta

14 | CRAIN’S NEW YORK BUSINESS | February 27, 2017

P012_P014_CN_20170227.indd 14 2/24/2017 5:16:08 PM

P015_CN_20170227.indd 15 CASH IN OR IN CASH tower’s demographics. could have changedthe BLOC POWER:

BUCK ENNIS, ROSA GOLDENSOHN SELL OUT? Privatization Privatization

Residents ataBrooklyn co-op BY ROSA GOLDENSOHN affordable forfuture buyers were tornoverwhether to keeptheirbuilding

I as much. $3,500. Such units now fetch 200times his three-bedroom apartment for buildingthe in1971and purchased unit—or pass that right to heirs. their to makefortune asmall by their selling a result, residents donot have right the to two-thirds the majority As needed. week were split nearly 50-50, not close building.the have to led afinal vote to privatize opted to leave program, the it would got avote. If two-thirds of residents the an offering Eachplan. theof 326 units program and authorize creation the of intent to leave affordable-housing the majority to convey needed anotice of took place last week, with atwo-thirds leave program. the Arequired vote name on building’s the wait list. instead of passing onthem to nextthe now fetch a median price of $650,000— on open the market—where Clinton Hill co-ops to opt out of program the and apartments their sell off St. James’ mortgagetwo years ago,freeing them investment plus profit. asmall But shareholderspaid Mitchell-Lama owners get back their they sell, chased shares for four- or five-figure sums. When middle-income homebuyers. Its residents pur program, offers which below-market prices to erected 1960sunder inthe state’s the Mitchell-Lama buildingtheir as affordable housing. Allison Stalworth,Allison 70,moved to But that won’t happen. Votes last But residents first had to vote to The 326-unit St. James Towers building was trification or counterbalance it freezingby of neighborhood’s the long march to gen- weighty decision last week: reap rewardsthe dents of an affordable co-op tower faced a of heart n the Clinton Hill, Brooklyn, resi- YES AND NO: YES AND disagreed. top, andStalworth - Steele, about impact the on culture? any Do of you care? Towers day the before last week’s vote. “And what asked residents at conference anews at St. James ings. “What about impact the on diversity?” James amid increasingly wealthy and white surround- taining abastion for middle-class people of color affordabilitypreserving the co-opat means main- lives nearby and attends church across street,the For her, as for Public Advocate James, Letitia who shopsbarber and churches giving way to condos. neighborhood,in the with boutiques replacing changes she when described board, begancrying The fateofthecommunity other purchase?” sheerty asked of privatization backers. Mitchell-Lama inlieuof going and making aprop- pray out tell, seek didthey affordable housing and offmakethe awindfall program. “Askwhy,them is ashareholder, questioned it whether was right to said. “That’s not job.”my That’sthe city, state, government’sfederal job,” he class—ofdle whoever—instead of my own family? “What am Isupposed to supporter be, of mid- the city’sthe affordability and displacement problems. holders were unfairly burdened with addressing living.”ized is not adream “This - sometallied: of sort social of property that he rents out, said before vote the was retired fire marshal, whoalso ownsClinton a Hill 15 years ago for $30,000as “a pure investment.” The apartment that way. program,Lama not able he will be to bequeath the “That be awould sure thingthat I wouldwith do it.” paid offalways was part of his plan. of people don’t have that.” named said of privatization the contingent. “A lot go to,” one 35-year resident asked who not to be “They’ve probably gotsomeplace that can they residents could drive up maintenance costs. would with privatization rise and said high-income blessing the body that you were she given?” asked. there. “Why would you not want to leave some- Michele Claudio-Roxey, amember of co-op’s the Steele wanted another generation that would But Marlene Steele, 99-year-old whose mother Darby said he felt that building’sthe 326 share- DarbyErnie said he bought his apartment about Now that stay co-op the will Mitchell- inthe “I would like to dieand give it to my kid,” he said. Stalworth said opting out afterthe mortgage was Other shareholdersOther noted that property taxes February 27,2017 wise be priced out be wise of area the able to be to live the faceofthe its goals. affordable units would have flown in not a side, take but loss the of 326 remain Mitchell-Lama inthe program. who, like James, wanted co-op the to state Velmanette Sen. Montgomery, ondepend officials,” as elected said in and of itself that and respect we all one St. James is an district election of votes for black candidates. “Twenty- area areliable to could be cease provider 34.4% black and 45.7%white. and 22.8% white; by were 2010 they were 11205ZIPcode the 53.8%black ing to census data. In 2000residents of nearly white half accord inadecade, - flippedfromborhood mostly black to cent tower. But surrounding the - neigh Walter Mosley, aresident of an adja- people of color, said Assemblyman fate of community.” this What you’ve got inyour hands is the The de Blasio administration did officials acknowledged Elected the St. James residents are primarily REAL ESTATE |

C RA IN’S N ■

| E W

MARKET PRESSURE Y O R K BU SIN E SS 2/24/2017 6:38:38 PM

15 for more money or discounts, better you want, and how far you’re willing terms, or making demands doesn’t to compromise. Write your deal points come naturally to most people. With down and keep them handy. Being that in mind, Crain’s Custom Studio prepared can also mean being prepared OFF-SITE brings you the following tips to make to walk away from a negotiation if you the preparation and process of negotia- cannot reach agreement or change. tion a win-win for both parties: ASK FOR WHAT YOU WANT LISTEN Asking for what you want starts with SUCCESS “ You can observe a lot just by watching.” knowing what you want. Before you be- — YOGI BERRA gin the negotiating process, determine your short- and long-term goals. events | expos | entertainment Negotiators tend to run into three pit- falls that hinder effective listening, ac- And be sure to establish what negoti- cording to author P.B. Stark in his book ating textbooks call the ZOPA, or “zone It’s Negotiable: The How-to Handbook of possible agreement.” There is always of Win/Win Tactics: Negotiating Tips from overlapping interest in a good nego- 1 Many think that negotiating is tiation, but if you can’t fi nd it don’t be the Pros primarily a job of persuasion—and afraid to walk away. Sanford “Sandy” to them persuasion means talking. Weill, former chief executive of Citi- Such people see being a talker as group, relates. “I would always get very “ Let us never negotiate out of fear. But let us an active role and being a listener as excited, and very disappointed, [when never fear to negotiate.” a passive role. Try to be more of an a deal didn’t pan out],” admitted Weill. — JOHN F. KENNEDY active listener. “Sometimes [the price] just doesn’t make sense to you, or the [target 2 People tend to over-prepare for company] has a certain culture that you The fi rst quarter of the year is a To guarantee that you are getting the what they are going to say and don’t feel is going to fi t together. You’ve best deals possible for your compa- spend their listening time preparing great time to start locking in all got to have the discipline to walk away.” ny, one of the fi rst skills you’ll want for their turn to speak. By antici- the details of your 2017 meetings to refi ne is the art of negotiation. As pating their next challenge rather MAKE SURE YOU ARE NEGOTIATING and events. Budgets are in, calen- President Trump often stated during his than listening, they may miss vital WITH THE RIGHT PERSON campaign, “Everything is negotiable.” information that could be used later dars are being set for in-and-out Before you start a negotiation, make Even in a fi xed-price industry like meet- in the negotiation. of offi ce meetings and registra- sure that the person you are nego- ing planning, opportunities for negotia- 3 We all have emotional fi lters that tiating with has the power to enact tions for preferred conferences tion abound. and trade shows are well in hand. may prevent us from hearing what changes and make commitments on we do not want to hear. Try to listen behalf of their company. You don’t want Often what keeps business profession- But your most important work is with an open mind. to fi nd yourself in a position where you als from negotiating better deal terms just beginning: negotiating all of believe you’ve struck a deal, only to is simply fear. Some planners fear the A good thought to keep in mind is that discover that someone higher in the your contracts and agreements to negotiation process because it is an humans are endowed with two ears and chain of command must approve your their best advantage. intrinsically uncomfortable one. Asking one mouth—so try to use them in their agreement. respective proportions. COMPROMISE BE PRESENT “ The most important trip you may take The best negotiations are conducted in in life is meeting people half way.” person. Conversational tone in e-mails — HENRY BOYLE

PIER 40 is notoriously difﬁ cult to decipher and NEW YORK you lose eye contact and non-verbal A win-win negotiation is a process cues like the body language from the not an event. It is based on fostering sender and vice versa. Also, some peo- a positive relationship in which each ple may not have the best command party compromises to get what they SEE NEW YORK. of written language. If you can’t be want, while giving what they can. In there in person, utilize Skype or another their book, Getting to Yes: Negotiating BE NEW YORK. video-chat service to conduct your Agreement Without Giving In, authors, business remotely, while still conversing Robert Fisher and William Ury, suggest face-to-face. having a best alternative to a negoti- Luxury yachts. Amazing views. ated agreement (BATNA)—an advan- Make your event a success. BE POSITIVE tageous alternative course of action Negotiating should be amiable not ad- if negotiations fail and an agreement versarial. Small-business author, Michael cannot be reached. Start with smaller Team Building. Conferences. Meetings. Kuster, suggests that having the right points of negotiation before you move Product Launches. Parties. mindset is critical to negotiations. “You on to larger issues to make it easy for Pier 40 in the West Village 353 West Street have to believe that you are going to your vendor to agree to non-essential New York, NY 10014 get your way,” advises Kuster. “Bring deal points. a positive attitude and a smile to the table. You’re not signing contracts with INVOLVE AN EXPERT the enemy; the people you’re negotiat- Once you do reach an agreement, be ing with are going to be your business sure to have someone in your ofﬁ ce, partners in one capacity or another.” preferably a legal counsel, to look at the negotiated contract to protect your Also remember that a negotiation is a interests or those of the company on business transaction: Keep it civil. Don’t whose behalf you are negotiating. raise your voice. Don’t walk out of the room. Keep calm while presenting your In the meeting-and-event world, ne- points and considering the response of gotiation can extend to venues, travel, the vendor. speakers, catering, entertainment, hospitality and more. To negotiate success- BE PREPARED fully, know what you want and go after Follow the Boy Scout motto and always it—but be sure to respect the vendor be prepared for your negotiations. That relationship in the process. Remember HornblowerNY.com/Crains | 646-798-4234 includes a good understanding of your that the whole point of negotiating is FOLLOW US    @HornblowerNY budget, the vendor, your history with compromise. This means that while NEW YORK SAN FRANCISCO SAN DIEGO NEWPORT BEACH MARINA DEL REY the vendor, competitive vendors, market looking out for yourself, you must also factors and other details that can serve be willing to give and take in order to as bargaining chips. Be clear on what satisfy both parties.

An Advertising Supplement to Crain’s New York Business

Offsite_Success_Feb_2017_2.indd 1 2/23/17 10:44 AM Put your plans in motion with a Business Term Loan

BUSINESS TERM LOAN* • Fix d rat of 2.2 % for th first For a limit d tim , tak six months advantag f a fix d rat f • Fix d rat of 4. % for th r st 2.2 % 2.2 % for 6 months. Busin ss of th -y ar t rm loans finan ong-t rm n ds • Loan amounts from $2 0,000 * lik xpansion, quipm nt, or up to $1,000,000 First 6 months improv nts.

Visit cnb.com/NYLoans or all (917) 322-5245 to l arn m .

* Busin ss T rm Loan has a t rm of fiv ars and is availabl n amounts b t n $2 0,000 and $1,000,000. Introdu tory rat s 2.2 % for th irst six months follo ing th p ning of th ount. Th r aft r, th at s fix d at 4.7 % for four-and-a-half y ars. Th usin ss T rm Loan is fully amortizing and must b ur d by a s urity int r st of first priority in busin ss ass ts (oth r than r al stat ) or sp ifi quipm nt, as d t rmin d by CNB. Pr paym nt p nalty appli s and i qual to 3.00% of th mount pr paid in th irst y ar, 2.00% of th mount pr paid in th ond y ar, and 1.00% of th mount pr pai a h y ar th r aft r ith no pr paym nt p nalty for th ast six (6) months of th oan. Busin ss T rm Loan off r is availabl hrough Mar h 31, 2017. Off r is limit d to th usin ss organization addr ss nly and is not transf rabl . Ea h Busin ss T rm Loan is subj r dit approval and loan do um ntation a ptabl NB. Off r is availabl nly in California, Conn ti ut, N vada, N rs y and N ork. Busin ss T rm Loan off r is not availabl mall Busin ss Administration guarant d loans or lin s o r dit, ass t-bas d or similar lin s o r dit, or any r n als xt nsions, modifi ations or r finan ing of an xisting CNB loans or lin s o r dit. To b ligibl or this Busin ss T rm Loan off r, (i) a sign d and dat d appli ation on CNB’s approv d form a ll as finan ial and oth r information r qu st d by CNB, must b iv d no lat r than Mar h 31, 2017, and (ii) if a Busin ss T rm Loan is approv d, all paym nts must b utomati ally d du t d from a CNB busin s h king or savings a ount and loa losing must o ur by Jun 0, 2017. CNB busin s h king or savings a ount us d for automati aym nts is subj t to th a ount’s standard transa tion and oth r f s. Additional t rms an onditions apply. Ask us for d tails.

City National Business Banking CNB MEMBER FDIC

CNYB FP.indd 1 2/21/2017 12:00:51 PM TO PLACE A CLASSIFIED AD, CALL 1 800 444 6007 OR VISIT CRAINSNEWYORK.COM

POSITIONS AVAILABLE PUBLIC & LEGAL NOTICES

Engineering NOTICE OF FORMATION OF Darcy New Notice of Qualification of Quogue In- Notice of Formation of Warren Street Intel Americas, Inc. has opening(s) York LLC. Articles of Organization filed come, LLC. Authority filed with NY Advisors, LLC. Arts. of Org. filed with in New York, NY. Combination ed/ with the Secretary of State of NY Dept. of State on 1/27/17. Office Secy. of State of NY (SSNY) on (SSNY) on January 6, 2017. Office lo- 1/23/17. Office location: NY County. exp accepted in some positions in lieu location: NY County. LLC formed in cation: NEW YORK County. SSNY has DE on 6/10/16. NY Sec. of State SSNY designated as agent of LLC upon of degree. To apply, email resume to been designated as agent upon whom designated agent of LLC upon whom whom process against it may be [email protected] and reference process against it may be served. The process against it may be served served. SSNY shall mail process to: 38 the job # below. Apply to each job # of Post Office address to which the and shall mail process to: 101 Cen- Warren St., Apt. 8B, NY, NY 10007. interest. Applications will be accepted SSNY shall mail a copy of any process tral Park West, Suite 1F, NY, NY Purpose: any lawful activity. through 04/12/17. EOE against the LLC served upon him/her 10023, principal business address. is: 111 E 14th St, Suite 420, New DE address of LLC: 1209 Orange Notice of Formation of CGRAMSEY York, NY 10003 The principal busi- St., Wilmington, DE 19801. Cert. of HOLDINGS LLC Arts. of Org. filed with Business Development Sales Acct Mgr— ness address of the LLC is: 8490 San- Form. filed with DE Sec. of State, Secy. of State of NY (SSNY) on Responsible to win the enterprise and ta Monica Blvd, Suite 2, West Holly- 401 Federal St., Dover, DE 19901. 01/24/17. Office location: NY County. architecture decision by offering uniﬁed, wood, CA 90069 Purpose: any lawful Purpose: all lawful purposes. act or activity. Princ. office of LLC: 53 N. Moore St., cohesive solutions based on Intel and its Apt. 2F, NY, NY 10013. SSNY designat- fellow traveler’s products and services. Notice of Formation of Mad Happy LLC. ed as agent of LLC upon whom process Notice of Formation of DDCM 104-106 Arts. of Org. filed with Secy. of State of Commission eligible. Telecommuting DELANCEY LLC Arts. of Org. filed with against it may be served. SSNY shall permitted. Requires BS+5 yrs exp OR NY (SSNY) on 1/24/17. Office loca- mail process to Patrick Ramsey at the Secy. of State of NY (SSNY) on tion: NY County. SSNY designated as MS+3 yrs exp (#1111 travel to clients’ 01/26/17. Office location: NY County. princ. office of the LLC. Purpose: Any agent of LLC upon whom process lawful activity. sites in Northeast U.S. region 60-70% SSNY designated as agent of LLC upon against it may be served. SSNY shall of the time). whom process against it may be mail process to: The LLC, 8360 served. SSNY shall mail process to Notice of Formation of Bridgeview 126 Melrose Ave., Ste. 105, Los Angeles, LLC. Arts of Org Filed with Secy. of Maurice Kassimir & Associates, P.C., CA 90069. Purpose: any lawful activity. 1375 Broadway - Fl. 23, NY, NY State of NY(SSNY) on 1/3/2017. Of- Cong Mercaz Hatorah of Belle Harbor 10018. Purpose: Any lawful activity. fice Location: NY County. SSNY desig- seeking FEMA service consultant to NOTICE OF FORMATION of Salon 85 nated agent upon whom process may assist with recovery from Hurricane West LLC.Arts of Org filed with Secy. of be served and shall mail copy of proc- Sandy. Any interested parties please Notice of Formation of PERCEPTIVE State of NY (SSNY) on 01/11/2017. ess against LLC to principal business THINGS, LLC Arts. of Org. filed with email to request RFP from Office location: NY County. SSNY desig- address: 41 Elizabeth St., Ste. 505, Secy. of State of NY (SSNY) on of[email protected] nated agent upon whom process may NY, NY 10013 Purpose: any lawful act. 01/20/17. Office location: NY County. be served against LLC to: c/o The deadline for all bids is 2/28/17. SSNY designated as agent of LLC upon M.D.Seidenberg, CPA, 627 RT. 304, NOTICE OF FORMATION of Quantized whom process against it may be New City, NY 10956. Principal busi- Mind LLC. Arts of Org filed with Secy. of served. SSNY shall mail process to c/o ness address: 520 West End Ave, #9, State of NY (SSNY) on 1/5/2017. Of- U.S. Corp. Agents, Inc., 7014 13th Looking for Full-time NYC Licensed Site NY, NY 10024 Purpose: any lawful act. fice location: NY County. SSNY desig- Ave., Ste. 202, Brooklyn, NY 11228, Safety Manager nated agent upon whom process may regd. agent upon whom and at which $100/hour J-KAY ASSOCIATES LLC. Art. of Org. be served and shall mail copy of proc- process may be served. Purpose: Any filed with the SSNY on 12/14/16. ess against LLC to principal business lawful activity. 914-266-0043 Office:New York County. SSNY designat- address: 199 E 7th St., #1B, NY, NY [email protected] ed as agent of the LLC upon whom 10009. Purpose: any lawful act. OLDETOWNEHOUSE LLC. App. for Auth. process against it may be served. filed with the SSNY on 12/14/16. SSNY shall mail copy of process to the NOTICE OF FORMATION of M5Invest Originally filed with Secretary of State LLC, c/o Morici & Morici, LLP, 600 LLC. Art. of Org. filed with NY Secy. of Looking for Construction Project Accountant of Delaware on 12/09/2016. Office: Third Avenue, 15th Floor, New York, NY State (SSNY) on 12/22/16. Office loca- New York County. SSNY designated as 10016. Purpose: Any lawful purpose. tion: NY County. SSNY designated as -Competitive Salary agent of the LLC upon whom process agent of LLC upon whom process against it may be served. SSNY shall against it may be served. SSNY shall -Work out of Islip, LI Notice of Formation of ISABEL mail copy of process to the LLC, c/o Jill mail copy of process to c/o CT Corpora- BEDOYA LLC. Arts. of Org. filed with 914-266-0043 Allegretti, Morici & Morici LLP, 600 tion System, 111 Eighth Avenue, NY, Secy. of State of NY (SSNY) on Third Avenue, 15th Floor, New York, NY NY 10011, regd. agent upon whom 1/24/17. Office location: NY County. [email protected] 10016. Purpose: Any lawful purpose. process may be served. Purpose: All SSNY designated as agent of LLC lawful purposes. upon whom process against it may be Notice of Formation of Company name served. SSNY shall mail process to: of 1199 ROGERS LLC. Arts. Of Org. 2159 First Avenue, #2E, NY, NY Notice of Formation of Company name filed with NY Dept. of State on 10029. Purpose: any lawful activity. of 1297 ROGERS LLC. Arts. Of Org. TELECOMMUNICATIONS 4/19/2016. Office location: Kings filed with NY Dept. of State on County. Sec. of State designated agent Notice of formation of US MARSHALL 4/19/2016. Office location: Kings of LLC upon whom process against it LLC. Art. Of Org. filed w. Secy of State County. Sec. of State designated agent may be served and shall mail process of NY (SSNY) on 12/30/2016. Office of LLC upon whom process against it to: 1199 ROGERS LLC, 135 Eastern Loc: New York County. SSNY designat- may be served and shall mail process TWO WAY RADIO Pkwy, Apt. 1D, Brooklyn, NY 11238, ed as agent of LLC upon whom process to: 1297 ROGERS LLC, 135 Eastern COMMUNICATIONS principal business address. Purpose: against it may be served. SSNY shall Pkwy, Apt. 1D, Brooklyn, NY 11238, all lawful purposes. mail copy of process to: US MARSHALL principal business address. Purpose: UÊ* 1*Ê Ê 6 ,9 LLC, 17 Stuyvesant Oval, New York, NY all lawful purposes. UÊ{nÊ"1,Ê/1, ,"1 Notice of Qualification of AIF IX MAN- 10009. Purpose: Any lawful activity. AGEMENT, LLC Appl. for Auth. filed with ÊÊÊ" Ê, *,- Notice of Qualification of Convene Park Secy. of State of NY (SSNY) on Notice of Qualification of Emergent IV, Avenue Tower W5, LLC. Authority filed UÊ , 9Ê- ,6 01/19/17. Office location: NY County. LLC. Authority filed with NY Dept. of with NY Dept. of State on 1/11/17. Of- UÊ 1-/" Ê ,6 LLC formed in Delaware (DE) on State on 12/30/16. Office location: NY fice location: NY County. Princ. bus. UÊ, /- 12/13/16. SSNY designated as agent County. LLC formed in TX on addr.: 366 Madison Ave., 7th Fl., NY, UÊ7 Ê, Ê-9-/ - of LLC upon whom process against it 12/30/13. NY Sec. of State designat- NY 10017. LLC formed in DE on may be served. SSNY shall mail proc- ed agent of LLC upon whom process 7/6/16. NY Sec. of State designated ess to the LLC, Attn: John J. Suydam, 9 against it may be served and shall mail agent of LLC upon whom process W. 57th St., 43rd Fl., NY, NY 10019. process to: c/o CT Corporation System, against it may be served and shall mail 7KH/DUJHVW0RWRUROD'HDOHULQ DE addr. of LLC: c/o Corporation Serv- 111 8th Ave., 13th Fl., NY, NY 10011, process to: c/o CT Corporation System, 1HZ

ADVERTISE IN CRAIN’S NEW YORK BUSINESS CLASSIFIED SECTION AND GET RESULTS

18 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 27, 2017

P018-19_CN_20170227.indd 18 2/23/2017 4:26:03 PM TO PLACE A CLASSIFIED AD, CALL 1 800 444 6007 OR VISIT CRAINSNEWYORK.COM

PUBLIC & LEGAL NOTICES

Notice of Qualification of 72 MAIN Notice of Qualification of Publicis Notice of Qualification of Maverick Lien Notice of Qualification of Convene One STREET ASSOCIATES LLC Health, LLC. Authority filed with NY Fund IV LP. Authority filed with NY Dept. World Trade, LLC. Authority filed with Appl. for Auth. filed with Secy. of State Dept. of State on 1/13/17. Office lo- of State on 11/10/16. Office location: NY Dept. of State on 1/11/17. Office of NY (SSNY) on 01/19/17. Office loca- cation: NY County. Princ. bus. addr.: NY County. LP formed in DE on location: NY County. Princ. bus. addr.: tion: NY County. LLC formed in Dela- 35 W. Wacker Dr., Chicago, IL 60601. 9/15/16. NY Sec. of State designated 366 Madison Ave., 7th Fl., NY, NY ware (DE) on 01/18/17. Princ. office of LLC formed in DE on 12/31/16. NY agent of LP upon whom process 10017. LLC formed in DE on LLC: 712 Fifth Ave., 30th Fl., NY, NY Sec. of State designated agent of LLC against it may be served and shall mail 11/9/16. NY Sec. of State designat- 10019. SSNY designated as agent of upon whom process against it may be process to: c/o Maverick Real Estate ed agent of LLC upon whom process LLC upon whom process against it may served and shall mail process to: CT Partners LLC, 315 Madison Ave., 3rd against it may be served and shall be served. SSNY shall mail process to Corporation System, 111 8th Ave., Fl., NY, NY 10017, principal business mail process to: c/o CT Corporation c/o Corporation Service Co., 80 State NY, NY 10011, regd. agent upon address. DE address of LP: 1209 Or- System, 111 8th Ave., NY, NY 10011, St., Albany, NY 12207-2543. DE addr. whom process may be served. DE ange St., Wilmington, DE 19801. regd. agent upon whom process may of LLC: 2711 Centerville Rd., Ste. 400, addr. of LLC: 1209 Orange St., Wil- Name/address of genl. ptr. available be served. DE addr. of LLC: 1209 Or- Wilmington, DE 19808. Cert. of Form. mington, DE 19801. Cert. of Form. from NY Sec. of State. Cert. of LP filed ange St., Wilmington, DE 19801. Cert. filed with Secy. of the State of DE, 401 filed with DE Sec. of State, 401 Feder- with DE Sec. of State, 401 Federal St., of Form. filed with DE Sec. of State, Federal Plaza, Ste. 1, Dover, DE al St., Dover, DE 19901. Purpose: all Dover, DE 19901. Purpose: all lawful 401 Federal St., Dover, DE 19901. 19901. Purpose: Any lawful activity. lawful purposes. purposes. Purpose: all lawful purposes.

Contact Joanne Barbieri at 212-210-0189 for classified advertising opportunities.

FEBRUARY 27, 2017 | CRAIN’S NEW YORK BUSINESS | 19

P018-19_CN_20170227.indd 19 2/23/2017 4:26:08 PM GOTHAM GIGS

ROAST, BLEND, TASTE: Gaviria at work in Long Island City

BY LANCE PIERCE

Bean counter A cup of joe is no mere morning ritual for this chief coffee sourcer

lthough Alvaro Gaviria’s birthplace of Pereira, it in his mouth and then spit it into a nearby spittoon, just Colombia, is part of the region known as the as wine tasters do. Gaviria relies on his knowledge of bean ALVARO GAVIRIA Coffee Axis, he knew almost nothing about pigmentation, coffee acids and the role of evaporation to coffee until he started working in the bean judge a brew’s body, acidity, aroma and taste and deter- AGE 64 Abusiness in New York 33 years ago. mine if it passes muster. “Tasting is the culmination of BORN Pereira, Colombia Eventually he landed at White Coffee Corp., the everything I do,” he said. Long Island City distributor that roasts 6,000 pounds With the help of White Coffee’s 105 employees, the RESIDES Maspeth, Queens of java an hour and generates $34 million in coffee Gaviria sources can end up in a cup EDUCATION A.A., graphic arts, New York City Technical College; annual revenue. at Peter Luger Steak House or a Hilton ho- B.A., marketing, Baruch College Gaviria’s job in logistics at White Coffee “In coffee tel. Or it can show up in one of the com- HUMBLE START Gaviria moved to quickly led to an opportunity for him to buy un- pany’s 400 blends and flavors sold under I found my New York when he was 12. The son roasted—or green—coffee on the global market. passion the White Coffee, Entenmann’s and Kah- of an architect, he landed his first For the past 10 years he’s been the company’s ” lua labels by retailers including Amazon, job in the industry at Eldorado Cof- chief sourcer, spending more than $10 million a T.J.Maxx and Walmart. fee Roasters Ltd. in Brooklyn. As a year on raw beans from Central and South America, Af- Last year Gaviria passed 22 tests covering theory and college student, he unloaded trucks for the company and worked on the rica and the Far East, and keeping track of political and sensory skills to become licensed as a Q grader by the production line. (Eldorado has since climate changes that can affect prices daily. Coffee Quality Institute. “I took the test to verify what I relocated to Maspeth.) “That in itself is very stressful,” said Gaviria. already knew,” he said. Buyers of unroasted coffee can earn HIS USUAL By noon each day Perhaps the most important part of his day is spent anywhere from $50,000 to more than $100,000 a year, de- Gaviria has downed two cups of roasting, blending and sampling as many as 60 coffees in pending on their experience and their employer’s size and medium roast with whole milk and order to fill a void in White Coffee’s product line, create a location, industry experts say. a smidgen of sugar. specific mix for a customer, match a competitor’s flavor or “Every day is something new and a different chal- TEA TIME “I’m the only one who simply try a new bean before buying it in bulk. On a recent lenge, and it’s absolutely never boring,” said Gaviria. drinks coffee in my home,” said Gaviria, the father of two sons and weekday he hunched over a rotating table set with more “Coffee was something I fell into, but in coffee I found the husband of a tea drinker.

BUCK ENNIS than a dozen small glasses. He slurped a spoonful, swished my passion.” — CARA S. TRAGER

20 | CRAIN’S NEW YORK BUSINESS | February 27, 2017

P020_CN_20170227.indd 20 2/24/2017 1:49:54 PM SNAPS

A feast for the eyes The New York Botanical Garden enlisted an array of design experts to create the centerpieces for its annual Orchid Dinner on Feb. 8 at The Plaza Hotel. During the cocktail hour, guests purchased rare orchids. The $650,000 in proceeds from the benefit will be used for orchid research. The 15th annual Orchid Show, featuring blooms from Thailand, is scheduled to continue until April 9.

Richard Chilton, founder and chairman of Chilton Trust Co., with his wife, Maureen Chilton, chairwoman of the botanical garden’s board of trustees.

City Councilwoman Julissa Ferreras-Copeland with Jeffrey Rosen, managing director of Lazard, and his wife, Marjorie Rosen, a vice chairwoman of the botanical garden’s board.

Better to give Dressed to impress The Prostate Cancer Foundation received more than $25,000 from the inaugural Blue Jacket Fashion Show and dinner Feb. 1. Former Giants receiver Victor Cruz and Yankees pitcher C.C. Sabathia were among the celebrity models Guests at the 75th birthday party of arts patron Adrienne Arsht (center) Feb. 4 who donned versions of at The Plaza Hotel included entertainer Allyson Tucker-Mitchell; opera singers the classic blue blazer. Rebecca Gulinello and Stephen Costello; and Tucker-Mitchell’s husband, actor Brian Stokes Mitchell, who sang during the event. Arsht pledged to donate $10,000 to a nonprofit chosen by each of the 10 entertainers who performed at her celebration.

Brent Tworetzky, Fashion stylist executive vice president at Ty Hunter and reporter XO Group, and his wife, Alicia Quarles during Randi Zuckerberg, the fashion show. founder of Zuckerberg The event, held at Media, at the birthday Pier 59 Studios, kicked party. Thus far three groups off the Blue Jacket have been confirmed to Initiative, a campaign receive charitable grants: the created by marketers Actors Fund, the American Frederick Anderson Pops Orchestra and and Laura Miller to Planned Parenthood. improve awareness of men’s cancer issues.

COURTESY OF THE NEW YORK BOTANICAL GARDEN BFA.COM/ANGELA PHAM, GETTY IMAGES, JULIE SKARRATT GARDEN BFA.COM/ANGELA COURTESY OF THE NEW YORK BOTANICAL SEE MORE OF THIS WEEK’S SNAPS AT CRAINSNEWYORK.COM/SNAPS. GET YOUR GALA IN SNAPS. EMAIL THERESA AGOVINO: [email protected].

February 27, 2017 | CRAIN’S NEW YORK BUSINESS | 21

P021_CN_20170227.indd 21 2/24/2017 1:52:01 PM FOR THE RECORD*

NEW IN TOWN ■ O Cafe shares of common stock for ed the tenant. CBRE Organization, was repre- & Co. represented both the 61 Hester St. $18.50 per share Feb. 10 in a represented the landlords, sented both in-house and tenant and the landlord in ■ Cocoa V Chocolat The Greenwich Village– transaction worth $749,221. SL Green Realty and by RKF. Asking rent for the the deal. The asking rent 174 Ninth Ave. based coffee shop opened its He now directly holds Vornado Realty Trust. ground floor was $250 per was $58 per square foot. Four years after closing third outpost, on the Lower 40,500 shares. square foot. Cocoa V, the vegan choc- East Side. RETAIL ■ Black Tap Craft Burgers olatier reopened with a ■ Goldman Sachs Group ■ Nordstrom Rack signed ■ Trimfit inked a five-year & Beer inked a 10-year lease slightly new name and a Inc. (GS-N) a lease for 46,500 square relocation and expansion for 4,000 square feet at 177 new chocolate maker in the HAPPENING SOON Pablo Salame, vice chair- feet at 855 Sixth Ave. The lease for 9,440 square feet at Ludlow St. The restaurant, same Chelsea location. man, sold 16,185 shares retailer will occupy the 463 Seventh Ave. The chil- known for its $15 milk ■ Open Market of common stock for ground floor, the lower dren’s clothing retailer will shakes, is set to open on the ■ Fishbowl 441 W. 14th St. $240.19 per share level and the second floor of move from its 2,634-square- Lower East Side in May. The 210 W. 55th St. March 9 Feb. 7 in a transaction the building between West foot space on the 15th floor asking rent for the deal was Tao Group opened a 6 p.m. to 10 p.m. worth $3,887,398. He now 30th and West 31st streets. to occupy part of the 13th $150 per square foot. East- restaurant and game lounge The Meatpacking District directly holds 195,747 Crown Retail Services floor of the 22-story build- ern Consolidated represent- with a 5,000-gallon fish is bringing its annual shares. represented the tenant. ing between West 35th and ed both the tenant and the tank in the Dream Midtown block party to the Highline The landlord, The Durst West 36th streets. Adams landlord, SMA Equities. ■ hotel. The “retro adult play- Stages with live DJ sets by ground” has vintage arcade Theophilus London and REAL ESTATE DEALS games, pinball machines Coco and Breezy. Attendees and a mini bowling alley. can shop designer sample COMMERCIAL DEALS ROUNDUP sales, join a silent auction ■ Spotify inked a 15-year TRANSACTION BUYERS/ ■ Halsey & Lewis and feast on all-you-can- lease for 378,000 square feet TARGET/SELLERS SIZE [IN MILLIONS] INVESTORS TRANSACTION TYPE 478A Halsey St., Brooklyn eat-and-drink options from at 4 World Trade Center. Fortress Investment $3,715.6 SoftBank Group Corp. SB M&A Vintage vinyl record e-tailer more than 25 restaurants The audio and video– Group LLC (Manhattan) Decent Vinyl opened its and bars. Tickets are $150, streaming services company LMI Aerospace Inc./Adage Capital $447.6 Sonaca SA SB M&A first brick-and-mortar stop or $350 for a VIP pass. will relocate its headquar- Management LP; Glen Capital in Bedford-Stuyvesant. It ters from 620 Sixth Ave. Partners LLC; Juniper Investment sells records dating back to The asking rent for the deal Co. LLC (Manhattan); Paradigm Capital Management Inc. (N.Y.) the ’60s, hardcover books BANKRUPTCIES was $85 per square foot. and other sundries. The landlord, Silverstein Travelopia/TUI AG $410.2 KKR & Co. LP (Manhattan) FB M&A ■ Kamro Construction Inc. Properties, was represented SummitReheis Inc./One Rock $360.0 Elementis plc SB M&A ■ The Hideout 1138 Sutter Ave., Brooklyn in-house and by a team of Capital Partners LLC (Manhattan) 42 Rivington St. The construction company brokers from CBRE. JLL French Logistics Portfolio/Rockspring $247.9 The Blackstone Group LP SB M&A This teahouse on the Lower filed for Chapter 11 bank- represented the tenant. Property Investment Managers LLP (Manhattan) East Side specializes in ruptcy Feb. 9. The filing Peninsula Packaging LLC/Odyssey $230.0 Sonoco Products Co. SB M&A ■ homemade chai and serves cites estimated assets and Investment firm Zar Investment Partners LLC (Manhattan) an assortment of teas liabilities of $500,001 to Property NY purchased a sourced from San Francisco– $1 million. The filing 145,170-square-foot office Race Winning Brands/ $150.0 Dover Corp.; Kinderhook FB M&A Dover Corp. Industries (Manhattan) based company Samovar. included no creditors with building at 250 W. 54th St. unsecured claims. for $83.1 million. Crunch Yunniao Delivery $100.0 GSR Ventures Management GCI ■ The Trestle Fitness and a number of Co. Ltd.; Matrix Partners China; Warburg Pincus LLC (Manhattan) 34-02 Broadway, Queens ■ Negril Village Inc. retailers currently occupy This Astoria pub with out- 70 W. Third St. the 13-story building be- MDC Partners Inc. (Manhattan) $95.0 Broad Street Principal GCI door space serves seafood The Caribbean restau- tween Broadway and Eighth Investments LLC (Manhattan) from Montauk. The 68-seat rant filed for Chapter 11 Avenue. Newmark Grubb China XD Plastics Co. Ltd. (34.4%) $88.8 Morgan Stanley Private Equity FB M&A eatery has metal beams on bankruptcy Feb. 13. The Knight Frank represented Asia III Inc. (Manhattan) the ceiling that mimic the filing cites estimated assets the seller, Ascot Properties, Two refrigerated warehouses in $56.2 Deutsche Asset & Wealth SB M&A trestle of a bridge. of $50,000 to $100,000 and and the buyer in the deal. Victoria and Queensland/Propertylink Management (Manhattan) liabilities of $500,001 to New Moosejaw LLC/Parallel Investment $51.0 Wal-Mart.com USA LLC SB M&A $1 million. The filing ■ Hutchin Hill Capital Partners; W Capital Partners (Manhattan) COMPANY MOVES included no creditors signed a 10-year lease for Motus Therapeutics Inc. $41.0 Deerfield Management Co., GCI with unsecured claims. 39,600 square feet at LP (Manhattan); Ipsen SA; MPM ■ Charlie Palmer Steak 888 Seventh Ave. The Capital; New Enterprise Associates; 45 W. 38th St. ■ The New York hedge fund will relocate OrbiMed Advisors LLC (Manhattan); Celebrity chef Charlie Pfizer Venture Investments (Manhattan); Internet Co. its headquarters from 142 Third Rock Ventures LLC Palmer opened his seventh 100 William St. W. 57th St. and will occupy city location, at the Archer The company filed for the entire 21st and 22nd Euronews SA $30.0 NBCUniversal Media LLC SB M&A (Manhattan); unknown minority stake Hotel in the Garment Dis- Chapter 11 bankruptcy floors of the 46-story trict. The 90-seat modern Feb. 14. The filing cites building. The asking rent Trinity Place Holdings Inc. (Manhattan) $26.9 GAMCO Investors Inc.; Horse GCI American steakhouse serves estimated assets and was $92 per square foot. Island Asset Management LLC; MFP breakfast, lunch and dinner. Investors LLC (Manhattan); Third liabilities of $1,000,001 CBRE represented the Avenue Management LLC (Manhattan) ■ McDonald’s to $10 million. The filing tenant. The landlord, TopHatMonocle Inc. $22.5 Emergence Capital Partners; Georgian GCI 809 Sixth Ave. included no creditors with Vornado Realty Trust, was Partners; Golden Venture Partners Inc.; The fast-food giant opened unsecured claims. represented in-house. iNovia Capital; SoftTech VC; Union Square a “French” location in Chel- Ventures (Manhattan); Version One Ventures ■ sea that’s the first of its kind ORIX USA inked a Selected deals announced for the week ending Feb. 16 involving companies in metro New York. SB M&A: in the U.S. This McDonald’s STOCK TRANSACTIONS 10-year relocation lease Strategic buyer M&A represents a minority or majority acquisition of existing shares of a company without serves pastries alongside Big for 20,123 square feet at the participation of a financial buyer. FB M&A: Financial buyer M&A represents a minority or majority acquisition of existing shares of a company with the participation of a financial buyer. GCI: Growth capital ■ Macs. It also has a concierge Citigroup Inc. (C-N) 280 Park Ave. The U.S. investment represents new money invested in a company for a minority stake. SOURCE: CAPITALIQ who greets customers Judith Rodin, director, sold arm of the Japanese and a wall of touch screen 2,999 shares of common financial-services group

self-service kiosks. stock for $57.76 per share will relocate its headquar- GET* YOUR NEWS ON THE RECORD Feb. 6 in a transaction ters from 485 Lexington To submit company openings, moves or real estate deals, or to receive further information, ABOUTemail [email protected] SECTION . ■ Milk Bar worth $173,207. She now Ave. and occupy the entire 74 Christopher St. directly holds 35,825 shares. 40th floor of the 43-story For the Record is a listing to help businesspeople in New York find opportunities, potential Chef Christina Tosi’s bakery building between East 48th new clients and updates on customers. Bankruptcy filings from the eastern and southern districts of New York are listed alphabetically. Stock transactions are insider transactions and soft-serve chain opened ■ Coty Inc. (COTY-N) and East 49th streets. The at New York companies obtained from Thomson Reuters and listed by size. Real estate its eighth city location, in Greerson McMullen, chief asking rent was $115 per listings are in order of square footage. the West Village. legal officer, bought 40,500 square foot. JLL represent-

22 | CRAIN’S NEW YORK BUSINESS | February 27, 2017

P022_CN_20170227.indd 22 2/24/2017 1:52:28 PM PHOTO FINISH

Pop-mart hen do New Yorkers wash down tacos with a chocolate shake? At the Pop-Tarts Café pop-up in Times Square, which ran for a week this month,W visitors enjoyed a sugary twist on burritos, pizza and other foods. The pastry pop-up and the seven-month-old Kellogg’s NYC restaurant that housed it are part of the cereal giant’s attempt to reconnect with young diners. A 2015 study from market research firm Mintel found that 43% of millennials distrust big food companies, compared with 18% of Americans in other age-groups. That perception has hurt the industry’s growth, with U.S. cereal sales shrinking every year since 2013. Kellogg’s is one of several big-name food brands looking for reinvention with new ventures around the city. Facing flattened sales, PepsiCo last year opened Kola House, a bar and restaurant in the Meatpacking District. The venue doesn’t display corporate branding like Kellogg’s does, and it remains unclear if running a hip eatery will help sell soda, especially when the bar doesn’t even serve Pepsi. Yelpers have complained about long waits for food and poorly managed events at Kola House. When one reviewer discovered that an unnamed big business was the prime mover behind the endeavor, she said she figured it must be Coca-Cola.— PETER D’AMATO BUCK ENNIS

February 27, 2017 | CRAIN’S NEW YORK BUSINESS | 23

P023_CN_20170227.indd 23 2/24/2017 1:53:26 PM “Massive amounts of highly sensitive client data traveling online, 24 hours a day. And I sleep like a baby at night.”

David Wilner / COO FRONTEO USA, Inc. Client since 2012

Meet Spectrum Enterprise. Our thing? Delivering the right data, voice, video and cloud solutions via our nationwide fiber-based network. And all the support you need to succeed. With our superior network and IT infrastructure, you’re free to do your thing.

Visit enterprise.spectrum.com/hello or call 866-667-3508

©2017 Charter Communications. All Rights Reserved. Not all products, pricing and services are available in all areas. Actual speeds may vary. Restrictions may apply. Subject to change without notice. All trademarks remain property of their respective owners.

ent-FEB17-Brand-10-8x14-5-CrainsNYBiz-8666673508 REV.indd 1 2/8/17 11:06 AM CNYB FP.indd 1 2/21/2017 12:02:14 PM