Crain's New York Business

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An angry good-bye in Harlem P. 6 | New York’s top-paid CEOs P. 12 | Trump’s not-so-public garden P. 15

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The anxiety-provokingand the businesses but still helping vital Newpractice Yorkers of face-to-face master it meetings—

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JUNECRAINS 20-26, 2016

FROM THE NEWSROOM | JEREMY SMERD A glaring problem IN THIS ISSUE 3 AGENDA

THE COPS WHO FLOODED STREET CORNERS last summer in Bed- 4 IN CASE YOU MISSED IT Stuy, my Brooklyn neighborhood, are gone, but the diesel- 5 THE BUSINESS OF POT powered floodlights that came with them remain outside 6 SPOTLIGHT the dilapidated Armstrong Houses. These 1,250-watt Ernst & Young 7 HEALTH CARE looks to decamp towers shine at least 20 times brighter than your average to New Jersey 8 REAL ESTATE light bulb—so bright that the U.S. military forbade soldiers 9 from facing Guantanamo detainees at them. WORKFORCE DEVELOPMENT Designed for nighttime construction crews, they are 10 ASKED & ANSWERED used to deter crime. I hate the 11 VIEWPOINTS lights’ glare but I’ve learned to accept them. However Elderly residents, 12 THE LIST oppressive they feel, violence—or the fear of it—is more so. “I feel safer,” said Ann Johnson, 63, sitting with her women and parents FEATURES family under a concrete awning outside the Armstrong saw the lights as a 15 TRUMP’S SECRET GARDEN projects. Above her, a light flickered dimly, then went necessary evil. Young 17 THE BUSINESS OF NETWORKING dark. But 20 feet away, the floodlights beamed. “You can 28 GOTHAM GIGS see what’s going on,” she said. men called them The lights symbolize the sad trade-offs forced upon New harsh. “These lights Yorkers by previous government and community leaders are for you,” one said who let public housing fall into a $17 billion state of disrepair. Longtime neighbor Shani Newsome sat on her stoop a block from the projects. “If the police are out here, then we won’t need those horrific lights.” Her friend agreed. “I adore the police foot patrol,” said Tisha Brown. “But unless the city is going to do more, the lights have to stay.” Mohaad Ali, 29, who works at Marcy Supermarket and Deli, said the lights P. 28 ensure there are witnesses when a crime happens. “When the light is on, RABBI MIRA RIVERA everybody can see, the camera can see,” he said. 29 In my conversations, elderly residents, women and parents saw the lights as a SNAPS necessary evil. Young boys and men felt that they were overly harsh. “Them lights, 30 FOR THE RECORD they’re angry,” said Rayquan Felder, 14. “They’re so bright, I can hardly see down 31 PHOTO FINISH the block.” Another said: “These lights are for you.” Meaning gentrifiers like me. Mayor Bill de Blasio last week said crime is down in areas with the lights. Housing Authority CEO Shola Olatoye, who spoke the next day at a Crain’s forum, told me last summer’s cops are now dedicated to certain projects. Fifteen NYCHA developments are getting new, permanent lighting by the end of next year. Everyone else, including those in the Armstrong houses, will have to wait. The lights are just one symptom of the problems afflicting public housing and its residents, and is a metaphor for our struggle to fix them, said Newsome, a ON THE COVER teacher in Brownsville, Brooklyn. “We’re a city divided,” she said. “We can use CRAIN’S COMPOSITE the lights as a Band-Aid, but as a city we need to come together and regroup.”

DIGITAL DISPATCHES CONFERENCE CALLOUT JUNE 27 Go to CrainsNewYork.com READ DISRUPTION AT THE Anbang Insurance Group may DOCTOR’S OFFICE convert 1,000 hotel rooms at the Waldorf Astoria New JOIN CRAIN’S for a morning York into luxury condos. The conference that will bring Chinese firm bought together the most important the landmarked > executives in health care to exam- property for $1.95 billion DR. TOM X. LEE, ine how doctors are adapting to two years ago. founder and CEO upheavals in the field and the ■ of One Medical implications for costs and quality. Christie’s is auctioning Group, will keynote off Joan Rivers’ Fabergé NEW YORK the conference. mini picture frames, silk pagoda dog bed ATHLETIC CLUB and other items from the legendary comedi- 8 a.m. to noon an’s penthouse. Rivers died in 2014. [email protected] LISTEN A master networker gives the inside scoop on how to navigate business meet- Vol. XXXII, No. 25, June 20, 2016—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double issues the weeks of June 27, July 11, July 25, Aug. 8, Aug. 22 and Dec. 19, by Crain Communications Inc., 685 Third Ave., ings. The president of the Municipal Arts New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send address Society argues that the public is getting a changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. raw deal on privately owned public spaces. And For subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. (GST NYCHA’s CEO on the challenges facing the No. 13676-0444-RT) city’s public-housing stock.

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AGENDAWHAT’S NEW JUNE 20, 2016 That’s no way to make the sausage: End lawmakers’ rush to judgment

tate politics is complicated, which is why Albany lawmakers always wind up their annual legislative session in frenzied negotiations to produce what is appropriately called “The Big Ugly”—an agreement to pass bills that have little in common, Sbut in combination generate a critical mass of political support. We see this complexity not as an excuse for this madness but as a reason for our elected officials to hash things out in a more measured fashion. Their machinations, after all, affect the lives of many people. JUST BEFORE Even legislation that has bipartisan support tends to get rushed the legislature through every June, when the state Assembly and Senate adjourn for adjourns, members the year. This year, a package of bills to address the scourge of vote on what’s known as “The painkiller and heroin addictions includes one measure that allows Big Ugly.” authorities to force an addict into inpatient treatment for three days. While that might seem beneficial on its face, some experts fear that endemic to the end of session is one of the reasons. briefly detoxifying drug users who are not ready to quit will increase No amount of rule-changing will take the politics out of politics, so their risk of overdosing when they resume their habits upon release, perhaps there is no technical remedy for the pettiness that often con- as they typically do. sumes elected officials. Senate Lawmakers should take time this The deadline imposed by the end of Republicans’ refusal to make mayoral summer to reflect on their annual ritual control of New York City’s public schools and think of a better way. Certainly, the session does inspire Albany to act. permanent, or even extend it for any sub- deadline imposed by the end of session But there’s an alternative—elections stantial length of time, is a good example. has the benefit of inspiring legislators to But there is no doubt that New act, lest they return to their districts Yorkers would benefit if their lawmakers with little progress to report. Businesspeople, especially in our indus- in Albany had a more professional, systematic approach. Many bills try of newspapers, are keenly aware of the power of deadlines to pro- that are important to small constituencies die because the herding the duce results. But state politics has a handy alternative to the impetus cats—63 in the Senate, 150 in the Assembly—can be an exercise in of legislative deadlines. They’re called elections. We have argued futility. If not passed during the six-month session, they must wait before that serving in the state legislature should be a year-round, until the following year to be introduced again. This strikes us as full-time job, and avoiding the harried, sleep-deprived negotiations arbitrary. It’s no way to do business. – THE EDITORS

FINE PRINT Bars, restaurants and taverns will be permitted to sell alcohol to the Sunday brunch crowd as early as 10 a.m. rather than wait until noon, thanks to legislation passed at the end of the session in Albany. The law will have an ancillary benefit: It will amend state code to allow liquor stores to sell gift wrapping and gift bags, too. Gov. Andrew Cuomo is expected to sign the bill.

BY GERALD SCHIFMAN STATS 25 WORDS OR LESS CITY LETS ITS BELT OUT LAST WEEK, THE CITY COUNCIL approved an $84 billion fiscal 2017 budget, increasing expendi- Thiel has shown tures and reserves as tax revenues climb. CITY AND THE “how easily an ag- Budgeted rise in the city’s spending, BREAKDOWN OF THE $3.2 BILLION IN NEW SPENDING up $3.2 billion from fiscal 2016. Salaries Pension + Fringe grieved billionaire 3.9% Also, $1.5 billion was put in reserve.

can hide behind YEAR-OVER-YEAR INCREASES IN EXPENDITURES 17% 20% Medicaid fronts, dark money 14.0% 3% 12.0% 3% Public Assistance and special 10.0% purpose vehicles.” 8.0% 25% 32% 6.0% —Nick Denton in a Gawker post 4.0% arguing that the properties he 2.0% *Other Than Debt Service Personal Service founded would survive, despite 0.0% Debt service Public OTPS Pension + Salaries Medicaid venture capitalist Peter Thiel’s Fringe *A large portion of the increase will go to city vendetta against the company Debt service, which stems from capital projects, and public employees and nonpayroll costs, such as energy assistance will grow the most on a percentage basis. and outside contracts.

AP IMAGES ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY SOURCE Citizens Budget Commission

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AGENDA ICYMI CRAINS EDITOR IN CHIEF Rance Crain publisher, vp Jill R. Kaplan assistant to the publisher Devin Arroyo, 212.210.0701 When business, labor interests EDITORIAL editor Jeremy Smerd assistant managing editors Erik Engquist, align, Albany is your oyster Peter S. Green, Jeanhee Kim web editor Amanda Fung art director Carolyn McClain his year’s last-minute scramble at the state legisla- photographer Buck Ennis ture highlighted the power—and, sometimes, the senior reporters Joe Anuta, Aaron Elstein, Matthew Flamm, Daniel Geiger necessity—of coalitions to enact laws. reporters Rosa Goldensohn, T Jonathan LaMantia, Caroline Lewis, The real estate industry’s effort to revive the 421-a tax Addie Morfoot data reporter Gerald Schifman break for new apartment buildings went sideways, even web producer Peter D’Amato with staunch support from Senate Republicans, for lack of columnist Greg David contributing editors Tom Acitelli, labor support. But its other priority, a bill banning listings Theresa Agovino, Erik Ipsen, Judith Messina, Cara S. Trager for illegal sublets, sped through the Senate and Assembly ADVERTISING Friday afternoon despite opposition from Airbnb. www.crainsnewyork.com/advertise advertising director Irene Bar-Am The anti-Airbnb bill united the politically muscular hotel [email protected] or 212.210.0133 workers’ union and hotel owners against competition that senior account managers Zita Doktor, Jill Bottomley Kunkes, Rob Pierce, hurts their business. The Real Estate Board of New York Stuart Smilowitz joined on behalf of property owners sick of law-breaking senior marketing coordinator LeAnn Richardson tenants, as did housing advocates who believe Airbnb sales/events coordinator Ashlee Schuppius 212.210.0282 rentals suck up needed homes. The combination trumped well-funded opposition from the tech industry, [email protected] making the bill an easy call for Assembly Speaker Carl Heastie and Senate Majority Leader John Flanagan (above). ONLINE general manager Rosemary Maggiore “When labor, management and owners come together like they did here, that’s a powerful coalition,” said 212.210.0237 [email protected] political strategist Neal Kwatra, an architect of the coalition. “When it’s about mutual interests like protecting CUSTOM CONTENT affordable housing and reaffirming the rule of law, that combination becomes hard to beat.” director of custom content Patty Oppenheimer 212.210.0711 Meanwhile, 421-a pitted the real estate industry against organized labor, resulting in a stalemate. [email protected] custom content manager Construction unions want projects receiving the tax break to pay prevailing wages, ensuring work for them. Giovanni Perla [email protected] Developers say building rental housing in the city usually requires the tax break and nonunion labor. Liberal EVENTS www.crainsnewyork.com/events housing advocates said the program subsidizes pricey apartments. The tripartite split has allowed the issue to director of conferences & events Courtney Williams, 212.210.0257 languish despite the players’ overlapping interests. – ROSA GOLDENSOHN [email protected] manager of conferences & events Adrienne Yee Macy’s averts strike DATA POINT CUNY, union deal AUDIENCE DEVELOPMENT director of audience & content The department store and union NEW YORK CITY LOST 11,600 JOBS City University of New York faculty partnership development representing thousands of workers will get their first labor contract in Michael O’Connor, 212.210.0738 reached a tentative deal for a new IN MAY ON A SEASONALLY ADJUSTED nearly seven years after reaching a [email protected] CRAIN’S 5BOROS labor contract, the details of which BASIS—THE FIRST MONTHLY tentative agreement to retroactively www.5boros.com were not immediately revealed. The boost salaries for 25,000 employees by DECLINE IN THREE YEARS, Irene Bar-Am, 212.210.0133 four-year agreement, reached on a total of 10%, offer longer-term con- [email protected] the day that employees planned to ACCORDING TO THE NEW YORK tracts to adjunct faculty and provide REPRINTS reprint account executive Krista Bora walk out, prevented what would signing bonuses. The contract expires STATE LABOR DEPARTMENT. 212.210.0750 have been Macy’s first strike since in 2017. PRODUCTION 1972. Health care costs and unpre- production and pre-press director dictable work schedules were the DiCaprio invests in NYC startup Simone Pryce media services manager Nicole Spell union’s chief concerns. University expands over FDR Drive Manhattan-based startup Qloo raised SUBSCRIPTION CUSTOMER SERVICE Rockefeller University began con- $4.5 million from investors, including www.crainsnewyork.com/subscribe Cosmetics firms unite struction on a $500 million project Leonardo DiCaprio, who joins celebri- [email protected] Revlon agreed to acquire rival to expand its Upper East Side ty backers Cedric the Entertainer and 877-824-9379 (in the U.S. and Canada). $3.00 a copy for the print edition; or $99.95 Elizabeth Arden for $419.3 million campus with a two-story building Danny Masterson in backing the firm. one year, $179.95 two years, for print in cash, in a deal worth $870 mil- over the FDR Drive, from East 62nd – AMANDA FUNG subscriptions with digital access. to contact the newsroom: lion, including debt. New York- to East 68th streets. The project is www.crainsnewyork.com/staff based Revlon is offering Elizabeth designed by New York-based Rafael 685 Third Ave., New York, NY 10017-4024 Arden shareholders a 50% premium Viñoly Architects. phone: 212-210-0100 fax: 212-210-0799 over the June 16 closing price. Entire contents ©copyright 2016 Crain Communications Inc. All rights Revlon said it expects to benefit Condé Nast expands digital reserved. ®CityBusiness is a registered from the global presence of Arden, Eight months after buying music trademark of MCP Inc., used under license agreement. which sells skin-care and fragrance site Pitchfork, the magazine pub- CRAIN COMMUNICATIONS INC. products in 120 countries. Arden lisher has paid an undisclosed BOARD OF DIRECTORS lost $28.4 million on revenue of amount for Backchannel, a site chairman Keith E. Crain $191.9 million in the last quarter. founded in 2014 by veteran Wired president Rance Crain writer Steven Levy. The site is Miranda to exit treasurer Mary Kay Crain, Cindi Crain Lin-Manuel Miranda will be leaving executive vp, operations William Morrow Rockefeller Foundation head to depart known for its in-depth coverage of executive vp, director of strategic Judith Rodin, 71, stepped down as the tech industry, and will become the hit musical Hamilton. His last operations Chris Crain performance will be July 9, but executive vp, director of corporate president of the Rockefeller a part of the company’s Wired operations K.C. Crain Foundation. Rodin, the first woman Media Group. Miranda, a Crain’s 40 Under 40 in senior vp, group publisher David Klein 2009, will keep busy. He will star in vp/production, manufacturing David Kamis to lead the nonprofit, will remain chief financial officer Thomas Stevens until a successor is named. During Yankee Stadium garages take another loss a film sequel to Mary Poppins and chief information officer Anthony DiPonio her 11-year tenure, the foundation Documents show the net loss on will be helping to turn his earlier founder G.D. Crain Jr. [1885-1973] focused on brand-building, estab- $237.6 million of municipal bonds musical, In the Heights, into a movie. chairman Mrs. G.D. Crain Jr. [1911-1996] lishing corporate partnerships and used to finance parking garages Hamilton won 11 Tony Awards—one secretary Merrilee Crain [1942-2012] tackling large philanthropic outside Yankee Stadium widened shy of a Broadway record.

AP IMAGES, BUCK ENNIS, GETTY IMAGES projects. last year to $31.2 million

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AGENDA SMALL BUSINESS

Hoping to buy low, sell high Despite legal limits on marijuana locally, enterprising New Yorkers

invest time, effort and money to get a foothold in a growing industry BY MATTHEW FLAMM THIS JOINT IS JUMPING: Around 80 exhibitors drew crowds at the ust two years ago, way that’s sane and con- and Star magazines, was for an October release, Javits Center’s pot expo. commercial trollable,” Silver said. sitting at a booth with the book is a personal attorney Lauren He wasn’t the only advance copies of Brave investigation into the Rudick began a established New Yorker New Weed: Adventures myths and science of has been giving his pro- “Half the conversa- Jcannabis practice exhibiting at the expo. into the Uncharted World weed. fessional circle advance tions,” he said, “ended at Madison Ave- Joe Dolce, the former of Cannabis, published Not wanting to be notice of his interest in with people saying, ‘Can nue firm Hiller PC, editor in chief of Details by HarperCollins. Slated taken as a stoner, Dolce the subject. you get me any?’” Ⅲ offering deal structur- ing and regulatory advice. Last week, as she welcomed potential clients from a Javits Center exhibitor table, the New York University-trained lawyer could boast that pot now accounts for 90% of her business. Carine Joannou PRESIDENT Much of it comes JAMIS BICYCLES from New Yorkers seeking investment opportunities such as sustainable greenhouse technology, or from new dispensaries in Oregon, which recently allowed out-of- state investors. “They recognize that there’s this incredible mountain of gold and nobody knows how high it goes or how big it gets,” Rudick said. Steering her Among the 80 or so exhibitors including Dope Magazine and High NY at company forward. the Cannabis World Congress & Business Exposition last week, New Yorkers were in the minority. Some who were there said they would no longer wait for Understanding recreational marijuana to be legal to have a role in a rapidly growing indus- what’s important. try. “New York should be on the cutting edge of this,” said Ron Silver, who owns Bubby’s Pie Honoring her father’s legacy has been a priority for Carine since taking over Jamis Bicycles. And she’s done just that, Co., the popular eatery in TriBeCa, and by the steadily growing the company. So when it came time to choose a new bank, she wanted a financial partner that could High Line. “New York help her continue to succeed. Carine found that in M&T Bank. We’ve put in the time to truly understand both her company smokes more weed than anybody.” and the biking industry to determine what Jamis needs to keep moving ahead. To learn how M&T can help your business, The lifelong chef and visit mtb.com/commercial. pot smoker has partnered with Portland, Ore.-based pot provider Attis Trading Co. to form Relevant Innovations. Their company has developed fast-acting, low-dose, cannabis- infused sweeteners that DEPOSITORY AND LENDING SOLUTIONS | TREASURY MANAGEMENT | MERCHANT SERVICES | COMMERCIAL CARD it uses to make high-end chocolate bars and sodas. “I’ve tried to Equal Housing Lender. ©2016 M&T Bank. Member FDIC.

LEADING EDGE EXPOSITIONS approach cannabis in a

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AGENDA SPOTLIGHT HARLEM

Demise of a co-working space leaves entrepreneurs angry Harlem Garage is victim of changing neighborhood BY MATTHEW FLAMM

he Harlem Garage was a neighborhood darling when the co- working space opened nearly three years ago on West 118th Street. But it will close its doors on June 28—a victim of the neighborhood’s rising fortunes and, some members claim, mismanagement. TThe closing is the lone failure for a small-business incubator program begun under Mayor Michael Bloomberg that aimed to grow small businesses in neighborhoods that needed private-sector investment. Several Harlem Garage members say its operator created a difficult environment that started with an uncooperative front desk and working hours that were unrealistic for entrepreneurs. The operator, Manhattan-based MicroOffice Solutions, says the site was too small to be profitable and now faces too much competition to continue. “It’s hard to make money on a small space,” said David Rotbard, co- founder of MicroOffice, which has co-working sites in Chelsea and the Flatiron district. In February, he told members he could not cover his $21,000 monthly costs, including the $13,000 rent. In April, he announced he would let the lease expire at the end of June. “We always knew it would not be great revenue,” Rotbard said. “We built it to help put Harlem on the map.” At its peak the garage had about 50 members, he said, well short of its 150-member capacity. Still, it has incubated about 200 businesses, some of which, like real estate broker- age Harlem Properties, have since moved into their own spaces. The Harlem Garage was one of 17 small-business incubators seeded by the Bloomberg and de Blasio administrations to build an entrepreneurial community in neighborhoods where business wasn’t investing. MicroOffice received a three-year, $250,000 grant from the city’s Economic Development Corp., of which $214,000 was paid out. The money helped turn a one-story parking garage into a high-ceilinged, 5,000-square-foot space with exposed brick and natural light. A dedicated desk cost $300 per month, with a 10% discount for women and minorities—a bargain compared with the $400 to $500 charged downtown. Entrepreneurs who flocked to the site had few com- plaints, other than about the occasional freezing temperatures in winter. “It was flexible, the open floor plan made it easy to collaborate and it was affordable,” said Naomi Hersson-Ringskog, co-founder of No Longer Empty, which turns vacant spaces into art exhibits. She rented four desks for the space’s first eight months, when she had a project in the area. SIZING UP THEIR OPTIONS: Alyssa Bowlby of Yleana Nighttime staffing proved costly Leadership Academy, Hersson-Ringskog didn’t mind that the site wasn’t open after hours. But Kim Watkins of inShape other members say that the 7 a.m.-to-7 p.m., Monday-to-Friday schedule and LaMon Bland, an limited its appeal. “You have to be able to accommodate members,” said attorney and a lobbyist. All are looking for a new Keith Longmore, a web publisher and founding member who moved out place to work. late last year. “If you look at WeWork, those guys are open 24 hours.” Longmore helped implement a program in which designated members oversaw the space after hours, but it ran into problems because designees couldn’t always be available. Rotbard said the Harlem Garage’s ground-floor location left no way to keep the space secure without staffing, and even with some members will- FOCAL POINTS ing to pay for nighttime access, he couldn’t afford an after-hours manager. The operator also got low marks for his staffing choices after a well- LOCATION The Harlem Garage, 318 W. 118th St. liked community manager left in the second year. “He hired really bad HOW IT STARTED The city’s Economic Development Corp. put out a request for staff people,” said Kim Watkins, who has run her corporate fitness com- proposals in November 2011 for a Harlem small-business incubator and co-working pany inShape out of the space since it opened. “That upset a lot of peo- space on or near 125th Street. The city announced in March 2013 that MicroOffice ple, and a lot of them quit.” Solutions had submitted the winning proposal for what was then called the Harlem Rotbard insisted the community manager was a tricky position to get Venture Space. It opened for business in November 2013. right, and the disputes caused by “a few rabble-rousers” were too much. “A space that’s 3% of your portfolio should consume 3% of your time,” WHAT IT COST The EDC provided $250,000 over three years to help with the site’s he said. “If it’s consuming 20%, it contributes to [making the business] initial development. Members paid $300 a month for a dedicated desk. unsustainable.” WHERE ELSE Other co-working spaces in the neighborhood include the Harlem There are other co-working choices in the neighborhood and more on Collective, at 1867 Amsterdam Ave.; TEEM, at 1463 Fifth Ave.; and Creative Workspace the way. The Harlem Collective offers 24/7 access. So will WeWork when at the Harlem Business Alliance, at 275 Lenox Ave. WeWork will open a location on its 30,000-square-foot location opens at 5 W. 125th St. in December. 125th Street in December. “It’s a real loss, but we’re moving on,” said Clayton Banks, WHY IT CLOSED MicroOffice says it was losing money on the site and did not want to co-founder of Silicon Harlem, a nonprofit working to create a tech com- renew its lease in the face of new competition coming into the neighborhood. Critics say munity in Harlem and that hopes to build a co-working space and incu- it could have survived had it been better run. Ⅲ BUCK ENNIS bator there. “There will be more to come.”

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AGENDA HEALTH CARE

Opioid-abuse bill is straight out of Cuomo’s playbook

Bill to curb opiates and cut addiction passes at 13th hour BY CAROLINE LEWIS

$189 million the Harm Reduction to drug treatment, and a dropped,” said Matt sensible, incrementally HIV/AIDS epidemic, blueprint to Coalition. doctor could opt to Curtis, policy director for positive things that will which won approval in curb surging Initially, the bill extend the time beyond VOCAL-NY. But some help people and save Albany but has not opioid and would have let a family 72 hours, pending judi- authorities can still com- some lives,” Curtis said. received as much money Aheroin overdoses member or spouse peti- cial review. mit drug users against The blueprint is remi- as some treatment announced early last tion for an addict to be “We were able to get their will. niscent of Cuomo’s 2014 providers and activists week passed the state involuntarily submitted the worst parts of that “It’s mostly smart, plan to end the were expecting. Ⅲ legislature on Friday, hours after the session had been set to close. The drug problem was a top priority for lawmakers on both sides of the aisle. Gov. Andrew Cuomo pre- sented the bill as a complete package to legislators near the end of the session. For the most part, drug-policy advocates liked the plan and applauded the attention Albany gave to the issue. But Cuomo’s strategy left them little time to call for removing ele- ments they disliked. The plan reduces the number of days for which a doctor can prescribe pain medica- tions such as Vicodin and Oxycontin to seven from 30. It also compels insurers to cover buprenorphine, a drug that can help people ease off opioids and heroin, though it has the potential for abuse. Absent are the tough- on-crime measures proposed by state Republicans. Doctors and groups including the Drug Policy Alliance, VOCAL-NY and the Coalition of Medi- cation-Assisted Treatment Providers pushed back against a provision to increase the time a person can be involuntarily committed to treatment to 72 hours from 48. “This additional USE YOUR INDEX FINGER TO KEEP A PULSE ON YOUR BUILDING. period increases the likelihood that an individual’s tolerance Building Management System software lets you monitor your building’s energy output through a network of sensors. So to opioids drops and is you can make real-time decisions. For a fully interactive experience designed to help you maximize control while minimizing likely to increase the your energy bill, visit our website. Financial incentives are also available. Just call 1-877-797-6347 to see if you qualify. risk of overdose” if ManageEnergy.conEd.com #ManageEnergy addicts relapse, said Dr. Sharon Stancliff, medical director of

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AGENDA REAL ESTATE

EY looks to shrink city footprint and move to New Jersey Accounting firm negotiating to relocate as much as 170,000 square feet from 5 Times Square to Hoboken BY DANIEL GEIGER

he accounting for space in lower lulls in the leasing market, firm formerly Manhattan, where it is when they have extra bar- known as Ernst & exploring locations for gaining power with landlords. Young plans to roughly half of its offices, Several big blocks of space Tvacate a portion of its long- sources said. It will likely have become available in the time U.S. headquarters at 5 keep some space at 5 Times city, giving EY a number of Times Square and shift some Square or at a new location locations from which to of its operations to New in midtown. choose and leverage in rent Jersey. EY acknowledged in a negotiations. EY is negotiating to relo- statement that it is search- New Jersey provides ten- cate as much as 170,000 ing for new offices but ants with as much as $15,000 square feet of its 1-million- would not specify where or in tax credits for every square-foot Times Square when it would move. employee they move to the office to the New Jersey “We are evaluating a host state, a benefit that can add waterfront, according to of locations, all aligned with up to millions of dollars in several sources familiar our strategic plan to deliver tax savings. And office space with the London-based service across the greater in lower Manhattan is gener- company’s search. Those New York City market- ally less expensive than it is sources said the firm is in places, including New in midtown. talks to take space at 121 Jersey and Connecticut,” a EY has not applied for tax River St., an office building spokesman for the company breaks in New Jersey, said a in Hoboken. wrote in the statement. spokeswoman for the New FLEEING ELMO: EY, the accounting and consulting firm previously known The deal in New Jersey Although EY’s lease at 5 Jersey Economic Develop- as Ernst & Young, is moving some of its functions out of Times Square. would be EY’s first step in Times Square expires in ment Authority, which shifting a large segment of 2022, large tenants often administers the state’s its operations out of Times begin searching for a new incentive programs. A CBRE is representing EY River St., where EY is in Square, the sources said. office well in advance and source said that once the in its search for new office talks to move. Neither Beginning next year, the sometimes accelerate their firm finalizes a lease, it will space. SJP Properties owns would comment on the firm plans to start searching decision-making during apply for the tax breaks. the office building at 121 potential deal. Ⅲ

Housing Authority CEO paints bleak picture to make the case for change

“The reality is so crummy,” Shola Olatoye said in a bid for support BY JOE ANUTA

ew York City priorities have left public to communicate with 9,000 Housing Authority housing, like so much of our employees because half of chief Shola Olatoye social-service safety net, in them lack a NYCHA email made some frank tatters.” address, Olatoye said. The Nadmissions about the ag- She added: “It’s difficult union representing its prop- ency and its properties June for residents to envision a erty managers allows repairs 16, in an effort to promote future that is different to be made only on week- the de Blasio administra- days from 8 a.m. to 4 p.m., tion’s controversial plans “as if property management for changes in public hous- Shifting financial is a tidy business that stops ing. priorities have left on the clock,” Olatoye said. The underpinnings of “ She said the authority is in NYCHA’s financial model public housing, negotiations to expand have “radically eroded,” its those hours. like so much of our TO THE RESCUE: Housing Authority chief Shola Olatoye is working to operating model has been Olatoye last year restore decrepit public housing. “frozen in time” and its pop- social-service launched a 10-year plan ulation has become “older called NextGen NYCHA to and poorer,” Olatoye said at safety net, in catch up on the $17 billion in which should help it issue ends in 2025, Olatoye fore- a Crain’s breakfast. tatters.” capital needs, including new bonds for capital casts, the cost of unmet “What were once consid- aging structures, leaky improvements. She is also capital needs will be down ered bold urban design and roofs, mold, rats and broken hoping to receive $3 billion to $10 billion, small repair architectural statements are because the reality is so security systems throughout from the U.S. Department of requests will be made with- now buildings derided as crummy, to be perfectly the authority’s 2,547 build- Housing and Urban in 72 hours and the authority’s islands that breed separate- honest.” ings. Already she’s overseen Development to repair fiscal health will make it an ness, despair and isolation,” How backward is the two years of balanced budg- 15,000 apartments. attractive investment for Ⅲ BUCK ENNIS, COSTAR she said. “Shifting financial agency? It uses paper messages ets at NYCHA, a rare feat, When the 10-year plan municipal-bond buyers.

8 | CRAIN’S NEW YORK BUSINESS | JUNE 20, 2016 20160620-NEWS--0009-NAT-CCI-CN_-- 6/17/2016 2:09 PM Page 1

񡑄񡑅񡑉񡑕񡑉񡑒񡑈񡑀񡑙񡑓񡑗񡑔 WORKFORCE DEVELOPMENT 񡑂񡑓񡑑񡑇񡑓񡑔񡑖񡑀񡑃񡑆񡑘񡑆񡑐񡑁 񡑃񡑁񡑃񡑀񡑄񡑤񡑙!񡑕񡑱񡑧񡑩񡑀񡑂񡑕񡑖񡑀񡑔񡑨񡑡񡑩񡑕񡑘񡑙񡑰 񡑠񡑧񡑩񡑀񡑄񡑦񡑢񡑕񡑦񡑗񡑙񡑘񡑀񡑑 񡑕񡑤񡑣񡑱#񡑀񡑧񡑠񡑀񡑈񡑣񡑠񡑙

񡑇񡑦񡑦񡑧!񡑕񡑱񡑣!񡑙񡑀񡑃񡑙񡑰񡑣񡑡񡑦񡑰񡑀%񡑀񡑅񡑩񡑙񡑙񡑦񡑀񡑱񡑙񡑗񡑢񡑦񡑧񡑤񡑧񡑡#񡑀%񡑀񡑓񡑢񡑙񡑀񡑂񡑧񡑥񡑠񡑧񡑩񡑱񡑀񡑧񡑠񡑀񡑱񡑢񡑙񡑀񡑆 񡑥񡑕񡑦񡑀񡑓񡑧 񡑗񡑢 񡑓񡑁񡑓񡑀񡑔 񡑦)񡑢∋#%񡑀񡑒񡑢񡑣񡑀񡑙∃񡑨%񡑢񡑥񡑦&񡑀!񡑢񡑱񡑦񡑀+#(%񡑀∋񡑦∀񡑢∀∋&񡑀񡑢∀񡑥񡑀%񡑦&񡑰񡑥񡑦∀∋&񡑀񡑧񡑦񡑦 񡑢&񡑀񡑤#!񡑧#%∋񡑢񡑣 񡑦񡑀񡑢&񡑀−񡑩#!񡑦񡑂.񡑀∗񡑩񡑰 񡑦񡑀񡑰∀񡑤%񡑦񡑢&񡑰∀񡑨񡑀∋񡑩񡑦񡑀)񡑢 (񡑦񡑀#񡑧񡑀+#(%񡑀񡑣(񡑰񡑥񡑰∀񡑨񡑄񡑀

HELP WANTED: Erik Johnson 񡑇񡑁񡑇񡑀񡑕񡑖񡑨񡑠񡑘񡑣񡑨񡑀񡑒񡑣񡑕񡑀񡑓񡑰񡑠񡑡񡑕񡑨񡑀񡑩񡑙񡑖 񡑐񡑣񡑣񡑤񡑱񡑒񡑩񡑠񡑱񡑖񡑀񡑕񡑖񡑨񡑠񡑘񡑣񡑀񡑁񡑀 񡑉񡑤񡑧񡑀񡑩񡑙񡑤񡑨񡑖񡑀񡑥񡑧񡑖񡑗񡑖񡑧񡑧񡑠񡑣񡑘񡑀 struggles to find 񡑢񡑤񡑨񡑩񡑀񡑔񡑤񡑣񡑩񡑖񡑢񡑥񡑤񡑧񡑒񡑧!񡑀񡑔񡑒񡑓񡑨񡑀񡑒񡑣񡑕 񡑗񡑰񡑣񡑔񡑩񡑠񡑤񡑣񡑒񡑡񡑠񡑩!񡑅񡑀񡑨񡑩񡑒񡑩񡑖񡑃񡑤񡑗񡑃񡑩񡑙񡑖񡑃񡑒񡑧񡑩 񡑩񡑧񡑒񡑕񡑠񡑩񡑠񡑤񡑣񡑒񡑡񡑀񡑨񡑩!񡑡񡑖񡑨񡑀񡑒񡑣񡑕񡑀 񡑒񡑢񡑓񡑠񡑩񡑠񡑤񡑰񡑨񡑀񡑨񡑩!񡑡񡑖񡑨񡑂񡑀񡑰񡑨񡑠񡑣񡑘񡑀 񡑩񡑤񡑰񡑔񡑙񡑀񡑨񡑔񡑧񡑖񡑖񡑣񡑨񡑀 񡑠񡑩񡑙񡑀 񡑔񡑧񡑒񡑗񡑩񡑨񡑢񡑒񡑣񡑨񡑙񡑠񡑥񡑂񡑀 񡑠񡑩񡑙񡑀񡑧񡑠񡑔񡑙 skilled workers for his 񡑡񡑠񡑘񡑙񡑩񡑖񡑠 񡑘񡑙񡑩񡑀񡑢񡑒񡑩񡑖񡑧񡑠񡑒񡑡񡑀񡑒񡑣񡑕 񡑢񡑖񡑨񡑨񡑒񡑘񡑠񡑣񡑘񡑆񡑀񡑖񡑣񡑖񡑧񡑘!񡑃񡑨񡑒񡑱񡑠񡑣񡑘񡑂 񡑤񡑤񡑕񡑀񡑩񡑤񡑣񡑖񡑨񡑂񡑀񡑨񡑩񡑧񡑤񡑣񡑘񡑀񡑓񡑧񡑰񡑨񡑙񡑖񡑕 specialty workshop. 񡑰񡑣񡑠񡑦񡑰񡑖񡑀񡑡񡑠񡑘񡑙񡑩񡑀񡑥񡑤񡑨񡑩񡑠񡑤񡑣񡑠񡑣񡑘񡑄 񡑡񡑤񡑣񡑘񡑀񡑡񡑒񡑨񡑩񡑠񡑣񡑘񡑀񡑑񡑈񡑇񡑀񡑡񡑠񡑘񡑙񡑩񡑠񡑣񡑘񡑀 񡑁񡑀񡑥񡑤񡑡񡑠񡑨񡑙񡑖񡑕񡑀񡑓񡑧񡑤񡑣∀񡑖񡑀񡑒񡑔񡑔񡑖񡑣񡑩񡑨񡑄 񡑕񡑖񡑨񡑠񡑘񡑣񡑨񡑄

񡑖#񡑤񡑢∋񡑦񡑥񡑀񡑰∀񡑀񡑠񡑦&∋񡑤񡑩񡑦&∋񡑦%񡑂񡑀񡑓񡑁񡑓񡑀񡑔 񡑦)񡑢∋#%񡑀񡑰&񡑀#∀񡑦񡑀#񡑧񡑀񡑕%񡑦񡑢∋񡑦%񡑀񡑗񡑦∗񡑀񡑡#%񡑱/&񡑀 񡑦񡑢񡑥񡑰∀񡑨񡑀 񡑦 񡑦)񡑢∋#%񡑀񡑤#!∃񡑢∀񡑰񡑦&񡑂񡑀∗񡑰∋񡑩񡑀񡑢񡑀񡑇񡑅񡑃+񡑦񡑢%񡑀 񡑦񡑨񡑢񡑤+񡑀#񡑧񡑀 #∀񡑨񡑃∋񡑦%!񡑀%񡑦 񡑢∋񡑰#∀&񡑩񡑰∃&񡑀񡑣(񡑰∋񡑀#∀ ∋񡑩񡑦񡑀񡑩񡑰񡑨񡑩񡑦&∋񡑀 񡑦)񡑦 &񡑀#񡑧񡑀񡑤(&∋#!񡑦%񡑀&񡑦%)񡑰񡑤񡑦񡑄񡑀񡑓񡑁񡑓/&񡑀∃%񡑰∀񡑤񡑰∃񡑢 &񡑀񡑢%񡑦񡑀񡑢∗񡑢+&񡑀񡑦񡑢&񡑰+ Good jobs, lots of applicants, %񡑦񡑢񡑤񡑩񡑢񡑣 񡑦񡑀񡑢∀񡑥񡑀񡑰!!񡑦񡑥񡑰񡑢∋񡑦 +񡑀%񡑦&∃#∀&񡑰)񡑦񡑀∋#񡑀񡑢 񡑀񡑦!񡑦%񡑨񡑦∀񡑤+񡑀񡑢∀񡑥񡑀%#(∋񡑰∀񡑦񡑀∀񡑦񡑦񡑥&񡑄 񡑘(%񡑀∃#%∋񡑧# 񡑰#񡑀񡑰∀񡑤 (񡑥񡑦&񡑀&#!񡑦񡑀#񡑧񡑀∋񡑩񡑦񡑀%񡑦񡑨񡑰#∀/&񡑀񡑧񡑰∀񡑦&∋񡑀񡑤#!!񡑦%񡑤񡑰񡑢 񡑀񡑢∀񡑥񡑀 and never the twain shall meet %񡑦&񡑰񡑥񡑦∀∋񡑰񡑢 񡑀∃%#∃񡑦%∋񡑰񡑦&񡑄 񡑠񡑦񡑀 ##񡑱񡑀񡑧#%∗񡑢%񡑥񡑀∋#񡑀&񡑦%)񡑰∀񡑨񡑀񡑂񡑀񡑁񡑄񡑀񡑀 Manufacturers’ quest to fill openings falls woefully short BY ROSA GOLDENSOHN

usinesses have long com- to hire early on, cool Brooklyn dudes plained about the struggle to who do other stuff, they can’t afford find skilled employees, but to live here anymore.” 񡑐񡑆񡑈񡑄񡑇񡑈񡑉񡑄񡑈񡑇񡑈񡑈񡑀,񡑀∗∗∗񡑄񡑥񡑥񡑦 񡑦)񡑢∋#%񡑄񡑤#!񡑀,񡑀񡑰∀񡑧#񡑑񡑥񡑥񡑦 񡑦)񡑢∋#%񡑄񡑤#!

this is ridiculous: Of 3,600 “It’s been a real struggle,” said 񡑉񡑕񡑣񡑦񡑱񡑙񡑦񡑕񡑦񡑗񡑙񡑀񡑁񡑀񡑒񡑙񡑨񡑕񡑣񡑩񡑀%񡑀񡑉񡑧񡑘񡑙񡑩񡑦񡑣∃񡑕񡑱񡑣񡑧񡑦񡑀%񡑀񡑂񡑧񡑘񡑙񡑀񡑂񡑧񡑥񡑨񡑤񡑣񡑕񡑦񡑗񡑙񡑀%񡑀񡑐񡑙∀񡑀񡑂񡑧񡑦񡑰񡑱񡑩 񡑗񡑱񡑣񡑧񡑦 Bapplicants for 91 manufacturing jobs Johnson, whose shop has high-end in Brooklyn, only 35 were hired. clients including the Ace Hotel and

FEBRUARY 29-MARCH 6, 2016 VOL. XXXII, NO. 9 WWW.CRAINSNEWYORK.COM NEW YORK BUSINESS®

The scenario played out over the the Mondrian SoHo. “Every time we AGENDA THE LIST COSTAR’S TOP MANHATTAN OFFICE LEASES Biggest Manhattan transactions in 2015, ranked by square feet

FEBRUARY 29-MARCH 6, 2016 VOL. XXXII, NO. 9 WWW.CRAINSNEWYORK.COM NEW YORK BUSINESS® Rank Address Square feet Davis & Gilbert Represented AGENDA2 2 1675 Broadway THE506,009 LIST COSTAR’SPublicis Groupe TOP MANHATTAN (Tenant) OFFICE LEASES 1 Biggest Manhattan transactions in 2015, ranked by square feet 3 200 Park Ave. 495,551 Tishman Speyer (Landlord) FEBRUARY 29-MARCH 6, 2016 VOL. XXXII, NO. 9 WWW.CRAINSNEWYORK.COM NEW YORK BUSINESS® 6 237 Park Ave.3 288,793 J. Walter Thompson (Tenant) PROMOTE. Rank Address Square feet Davis & Gilbert Represented 501 W. 30th St.1 193,306 Boston Consulting Group (Tenant) 12 AGENDA2 2 1675 Broadway 506,009THE LIST COSTAR’SPublicis Groupe TOP MANHATTAN(Tenant) OFFICE LEASES 200 Liberty St.1 172,352 Associated Press (Tenant) 15 1 Biggest Manhattan transactions in 2015, ranked by square feet 3 200 Park Ave. 495,551 Tishman Speyer (Landlord) past year as the Brooklyn Chamber of advertise, it’s a real slog. It’s a difficult 3 World Trade Center4 171,495 GroupM (Tenant) 16 6 237 Park Ave.3 288,793 J. Walter Thompson (Tenant) 855 Sixth Ave.1 Rank Address147,954 Squarequare feet Davis & Gilbert RepresentedRReeppreresesentednted 20 1 Commercial Company (Tenant) 12 501 W. 30th St. 2 193,306 Boston Consulting Group (Tenant) 3 1675 Broadway 506,00906,009 Publicis GrouGroupeupppee (Tenant)((TTTt)Tenant)Tenaenant)t) 50 200 Park Ave. 2 1 91,210 Tishman Speyer (Landlord) 200 Liberty St. 172,352 15 1 Associated Press (Tenant) The list includes leases with terms of more than two years. 1-New lease. 2002-Renewal Park and expansion. Ave. 3-Renewal. 4-Expansion. CoStar Group495,55195,551 Inc., a provider of information services to the U.S. and U.K. commercial real estate industries, offers customers3 the most comprehensive verified4 database of commercial real estate information in the U.S. and U.K. For moreTishman information, visit SpeySpeyeryyeer (L((Landlord)Landlord)Laandlordd)) costar.com or call (877) 7-COSTAR.16 3 World Trade Center 171,495 GroupM (Tenant) 6 237 Park Ave.3 288,79388,793 J. Walter ThoThompsonommmppssoon (Tenant)(Tenanntt)) 20 855 Sixth Ave.1 147,954 Commercial Company (Tenant) 501 W. 30th St.1 193,30693,306 12 3 Boston ConsuConsultinguullttinngg Group (Tenant)(T(TTeennanantt) 50 200 Park Ave. 1 91,210 Tishman Speyer (Landlord) 15 200 Liberty St. 172,3522,352 Associated PrPressreeess ((Tenant)TTeTenant) The list includes leases with terms of more than two years. 1-New lease. 2-Renewal and expansion. 3-Renewal. 4-Expansion. CoStar Group Inc., a provider of information services to the U.S. and U.K. commercial real estate industries, offers customers the most comprehensive verified4 database of commercial real estate information in the U.S. and U.K. For more information, visit costar.com or call (877) 7-COSTAR.16 3 World Trade Center 171,4951,495 GroupM (Tena(Tenant)anntnt)

1 Why not? Commerce attempted to help local process.” 20 855 Sixth Ave.Davis & Gilbert represented 147,954either47,954 the tenant or theCommercial landlord in CCompanyommpppany (Tenant)(Tennaaannt)) eight of Manhattan’s largest office leasing transactions (based on 3 50 200 Park Ave.square footage), including seven91,2101,210 transactions in theTishman top twenty, SpeySpeyerin yyeer (L((Landlord)Landlord)Landlordndlord)) 2015. Details of these transactions, with their represented rankings The list includes leases with terms of moreare thanlisted two years.above. 1-New lease. 2-Renewal and expansion. 3-Renewal. 4-Expansion. CoStar Group IInc.,ncc.,, a prprovprovidervidderer of informationin sserservicesrvvicces too ththe U.S. and U.K. commercial real estate industries, offers customers the most comprehensive verifiedrified database of commercial real estate informationinformation inn tththehe U.S.U.S aandd U.K. For more infoinformation,nfoorrmmation,n, visit costar.com or call (877) 7-COSTAR. For additional information on Davis & Gilbert’s real estate practice, please visit www.dglaw.com. Davis & Gilbert represented either the tenant or the landlord in eight of Manhattan’s largest office leasing transactions (based on square footage), including seven transactions in the top twenty, in 2015. Details of these transactions, with their represented rankings are listed above. Reprinted with permission from the Crain's New York Business. © 2016 Crain Communications Inc. All Rights reserved. Further duplication without permission is prohibited. Visit www.crainsnewyork.com.For additional information #NB16013 on Davis & Gilbert’s real estate practice, please visit www.dglaw.com. Davis & Gilbert represented eithereithheerr thet e tenanttteenant oror the landlordllaannddlord in eight of Manhattan’s largest officofficecee leasinglleeassinnngg transactionstransactionnss (based(bbaased on square footage), including seven ttrtransactionsraanssaaccttions iinn the ttotopopp ttwenty,twent in manufacturers fill the positions, Attempting to close the gap, three 2015. Details of these transactiotransactions,onnss, wiwithitthh theirt represerepresentedseenntteed ranrankingsnkings are listed above. Reprinted with permission from the Crain's New York Business. © 2016 Crain Communications Inc. All Rights reserved. Further duplication without permission is prohibited. Visit www.crainsnewyork.com.For additional information #NB16013 on DavisDaavviis & Gilbert’sGGiilbert’s real estateeessttaatte practice,pra please visit www.dglaw.com. For more information contact

Reprinted with permission from the Crain's New York Business. © 2016 Crain Communicationss Inc.Innc. AllAlll RightsRRiihthtsh reserved.reservedd. which ranged from leather seamstress Brooklyn Chamber staffers cold- Further duplication without permissionon is prohibited. Visit www.crainsnewyork.com.www.crainsnewyork.coomm.. #NB16013B166060130133 Krista Bora, Reprint Account Executive [email protected] • tel 212.210.0750 to metal polisher to woodworker to called businesses with openings and coffee-roasting apprentice. They did sought to connect them to funding for not require advanced education. on-the-job training. The staffers dis- “We’re not filling the jobs. What is seminated the openings to communi- the disconnect?” wondered Carlo ty workforce providers, posted list- Scissura, president ings online and visited of the chamber. “I Those artistic public-housing cam- think many of them puses to recruit. probably need addi- people, the kind of But the overwhelming tional qualifications, “ number of eager appli- additional support.” guys I used to hire, cants lacked the skills to Erik Johnson, a cool Brooklyn nail down the jobs. Brooklyn entrepre- “We have a work- neur who listed dudes who do force team, they’ve some of the 91 open- other stuff, they been out looking for ings, agreed. His people, and the bottom Argosy Designs, can’t afford to live line is that they haven’t which specializes in here anymore found people for these custom metalwork positions,” Scissura and has grown from said. “These are jobs a basement experiment into a 9,000- ready to go.” square-foot shop with 16 employees, Some of the positions offered hourly has had to turn away business because salaries in the $20-an-hour range and he can’t find applicants with hands- above, though many were closer to the on experience. minimum wage, $9. “Things that have no relevance at Creating more programs that fund all to manufacturing—working at companies to pay trainees could help, Modell’s as a shoe salesman, it just Scissura said. But to flourish in Brooklyn’s doesn’t apply,” Johnson said. “I get a artisanal manufacturing boom, employ- lot of those kind of résumés. Or none ers must gamble on inexperienced work- at all—I get guys who’ve got no job ers—just as workers take the risk when experience.” specializing in a niche trade. While Johnson is willing to train an “They’re real jobs, the pay is pretty apprentice, one would need some damn good, you don’t need a college basic skills to start. Recent technical- degree, we have a good benefits pro- school grads are versed in high-tech gram,” Johnson said. But “there’s no practices, but Johnson, a former artist, lightning bolt where you’re suddenly runs an all-manual shop. “Those a master fabricator,” he added. “It’s Ⅲ BUCK ENNIS artistic people, the kind of guys I used time spent.”

JUNE 20, 2016 | CRAIN’S NEW YORK BUSINESS | 9 20160620-NEWS--0010-NAT-CCI-CN_-- 6/16/2016 6:38 PM Page 1

AGENDA ASKED & ANSWERED BANKING INTERVIEW BY AARON ELSTEIN

ROBERT WILMERS M&T Bank

Buffalo-based lender with 800 branches and $122 No one has billion in assets, M&T increased its New York City explained how we footprint with the 2015 acquisition of Hudson City “ would break up Savings. Driving the expansion is Robert Wilmers, CEO Afor 33 years and one of the most respected figures in U.S. banking. the banks in a way Since 1980, the company’s shares have returned an average of that makes sense 18.9% per year, rivaling the 19.5% of Warren Buffett’s Berkshire Hathaway,a major stockholder in M&T for 25 years. Since 2010, Wilmers, now 82, has been speaking out about the big banks, saying people at the top are overpaid and run excessively opaque, complex institutions.Wilmers was paid $3.7 million in 2015— one-eighth as much as JPMorgan Chase’s Jamie Dimon—but his 3% stake in M&T is worth about half a billion dollars.

What do you think of what the presidential candidates are saying about banks? DOSSIER Donald Trump and Bernie Sanders are both saying the same thing WHO HE IS CEO, M&T Bank in different ways. They’re talking about the alienation that has been BORN New York City created in the country. When I started this job, a bank CEO got paid maybe $300,000 a year. Now we have top people making $25 mil- RESIDES New York City lion at banks that have been making the wrong sort of headlines for and Buffalo several years. All of that alienates people. EDUCATION B.A. in history, Harvard College Are you making an argument for breaking up the largest banks? GROWTH THROUGH No one has explained to me how we would break up the banks in a ACQUISITION As a young way that makes sense. Do you break them up by product line? I don’t man, Wilmers served as deputy think that’s practical. Breaking them up by geography doesn’t make a finance commissioner for Mayor John Lindsay before joining lot of sense, either. I have to admit I don’t have the answers. Morgan Guaranty Trust in 1970. Under Wilmers, M&T has Who are you supporting for president? acquired several banks that had Turn off your recorder and I’ll tell you. suffered steep losses and could be bought for a discount. Your bank mostly has avoided the New York market for years. Why are you BUT DON’T CALL HIM here now? SIR Wilmers was raised in We came out of the financial crisis very well and have been expanding New York City and Belgium, our footprint. But there was always a hole in the middle, and that was where his father was president the New York City area. The acquisition of Hudson City fills that hole. of a utility company. He speaks fluent French and since 1998 has Regulators made you wait three years to complete the Hudson City acquisi- owned the Château Haut-Bailly in tion, demanding that M&T improve its systems to detect money laundering. France’s Bordeaux region. In 2008, he was named a Chevalier of the Legion of Did you consider walking away from the Hudson deal? Honor by French president Nicolas Of course I thought about walking away, but it was always right to keep Sarkozy. He is a former chairman of the going. And we learned we’re by no means perfect, that there are New York Bankers Association and director things we can do better, and we had better understand that. at the Federal Reserve Bank of New York. SECOND TIME AROUND Wilmers How does the New York City economy look to you? stepped aside as M&T’s CEO in 2005 but We have only an $8 billion real estate loan portfolio down here, so my returned to the post less than two years later. sense of things isn’t as acute as it is upstate. But the economy seems His successor did not like the job.

quite strong here still. I don’t see any slowdown at all. BUCK ENNIS

You were chairman of Empire State Development Corp. under Gov. David Paterson.Do you think Gov. Andrew Cuomo is committed to helping upstate? I was skeptical at first, but I’ve been impressed. His Buffalo Billion investment program is really helping the city. You see cranes at work, new hotels going up and a lot of activity where we hadn’t seen any for many years. I give him credit for that.

Does Warren Buffett give you any advice on how to run the bank? He doesn’t take an active role in overseeing the business. He always says, “Treat me like any other shareholder.” I don’t. A few months ago, I flew to Omaha to talk to him.

What worries you these days? I worry that a false sense of security is being created because so much financial activity is being done outside the banking system. Ⅲ

10 | CRAIN’S NEW YORK BUSINESS | JUNE 20, 2016 20160620-NEWS--0011-NAT-CCI-CN_-- 6/17/2016 3:12 PM Page 1

AGENDA VIEWPOINTS

Flat returns cloud future for state’s massive pension fund Comptroller puts best face on results, but taxpayers are on the hook for billions

FOR EVERY $100 in despite the gyrations of the stock despite big fees that are traditional- New York state’s market, and that the fund remained ly 2% of assets and 20% of gains (but nearly $180 billion financially strong. Public officials in no givebacks when there are losses). pension fund, it charge of pensions are disposed to DiNapoli noted that hedge funds earned 19 pennies— find the silver lining in dark clouds. performed poorly last year and that THOMAS that’s right, cents— Here’s the real story. he would overhaul that portfolio, DINAPOLI, who runs the last fiscal year, The key number is 7%. but he remains committed to state pension GREG DAVID Comptroller The state pension fund, the sector while others are fund, will alter Thomas DiNapoli which covers essentially all abandoning it. its hedge-fund portfolio. announced last week. DiNapoli state and local workers % State and local govern- tried to put the best face on those outside New York City, 0.2 ment budgets face a hit results, emphasizing that at least assumes it will earn 7% a RETURN in 2017 budgets. When the near a record high. At some point the investment return was positive year on its investments. achieved by pension fund doesn’t earn the Fed will raise interest rates, When it doesn’t, it loses state pension enough money, the comp- which will send bond prices lower. STATE PENSION FUND ground—and last fiscal year fund in 2016 troller has to raise the per- Alternative investments aren’t off- the fund dropped by $5 bil- centage of payroll that gov- setting the problems. It is possible NO GAIN, AND PAIN AHEAD lion. While the comptroller did not ernments have to contribute. that the state will have trouble release detailed data for 2016, in the There is no immediate crisis. reaching the 7% benchmark for YEAR ASSETS* RETURN previous year the fund received New York, for the most part, makes several years. 2012 $150.6 6.0% contributions of just under $6 bil- the contributions it should each One final note. New York City’s lion and paid out benefits of more year (unlike New Jersey) and has pension funds will likely report 2013 160.4 10.4 than $10 billion. So a return of one of the best-funded pension results similar to the state’s later 2014 176.8 13.0 0.19% leads to a decline in assets. plans in the country, according to a this summer. Because the city funds 2015 183.5 7.2 The fund’s woes are about more recent report from Moody’s. This are not as well funded, the conse- than stocks. Around the country, means the state has a cushion for a quences will be greater. Ⅲ 2016 178.1 0.2 public pension plans are abandoning bad year or two.

* In billions, for fiscal years ended March 31 hedge funds because they But the outlook for markets isn’t GREG DAVID blogs regularly at Source: NYS comptroller have produced miserable gains good. Stock market indexes are CrainsNewYork.com.

Cookin’ in B’klyn wpbid.com/smartmove Food makers thriving, despite some failures

THE ANECDOTAL EVIDENCE in “Foodies in a pickle” (May 30) regarding Brooklyn’s artisanal food businesses is not representative of the growing manufacturing sector in the borough. In the past several years, we have experienced a resurgence of specialty food and beverage manufacturing. Food production jobs in Brooklyn have grown by roughly 2% annually over the past six years, and the number of beverage manufacturing businesses has increased by nearly 60% since 2010. Yes, some businesses struggled and were forced to close. However, countless others are not only sustaining their companies but growing rapidly. Michael’s of Brooklyn—which produces traditional Italian sauce—is significantly expanding its facility in Marine Park. In 2013, Jacques Torres DOWNTOWN WHITE PLAINS Chocolate moved into a 40,000-square-foot production space at the Brooklyn Army Terminal. Tower Isle’s Frozen Foods is seeking space here A SMART MOVE too. These are but a few of the borough’s many growing food and beverage producers, and the FOR YOUR BUSINESS Brooklyn Chamber of Commerce will showcase 90 of them at Brooklyn Eats—the borough’s • 25 miles from NYC largest food and beverage trade show—June 24. • Easy walk to Metro-North & only 35 minutes to Grand Central While there are commercial corridors in • Class A rents in the mid-$30s sf; Class B’s in the mid-$20s Brooklyn where retail stores are struggling to • Top 100 Best Places to Live remain open, overall, food and beverage manu- • Over 2,000 new housing units currently in development facturing in the borough is flourishing and • Vibrant restaurant & nightlife scene employing more people than it has in decades. CARLO A. SCISSURA Want to cut your NYC rent in half? Contact Kevin Nunn, Executive Director, White Plains Business Improvement District, President and CEO at 914.328.5166 (Ext. 5) or [email protected] or visit wpbid.com/smartmove for more information.

BLOOMBERG Brooklyn Chamber of Commerce

JUNE 20, 2016 | CRAIN’S NEW YORK BUSINESS | 11 20160620-NEWS--0012,0013-NAT-CCI-CN_-- 6/16/2016 6:39 PM Page 1

AGENDA THE LIST NEW YORK AREA’S FORTUNATE 100 Chief executives ranked by 2015 total compensation (in thousands) TRENDS

WOMEN ON THE FORTUNATE 100 LIST CEOS WITH THE LARGEST PAY RAISE BETWEEN 2014 AND 2015 NEWCOMERS TO THE FORTUNATE 100 RANKED BY PAY CEO positions skew toward men, and a dwindling number of women have taken spots on Crain’s Sirius XM Radio Inc. highest-paid list since 2012. James E. Meyer $21,600.2 TOTAL COMP NAME COMPANY IN 2015 8 Investors Bancorp Inc. Paul J. Taubman PJT Partners Inc. $75,452.1 7 Kevin Cummings $14,581.3 Thomas S. Smith Jr. Sotheby’s $20,049.9

Viacom Inc. Urban Edge 5 Philippe P. Dauman $9,819.5 Jeffrey S. Olson Properties $15,252.1 4 Twenty-First Bristol-Myers Squibb Co. James R. Murdoch Century Fox Inc. $15,054.2 Giovanni Caforio $8,395.3 Northstar Asset Management MarketAxess Holdings Inc. Albert Tylis Group Inc. $13,544.0 Richard M. McVey $8,345.2 2012 2013 2014 2015 Source: Crain’s research

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12 | CRAIN’S NEW YORK BUSINESS | JUNE 20, 2016 20160620-NEWS--0012,0013-NAT-CCI-CN_-- 6/16/2016 6:39 PM Page 2

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JUNE 20, 2016 | CRAIN’S NEW YORK BUSINESS | 13 20160620-NEWS--0014-NAT-CCI-CN_-- 6/16/2016 6:39 PM Page 1

AGENDA THE LIST NEW YORK AREA’S FORTUNATE 100

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FOR ALL CRAIN’S LISTS, GO TO CRAINSNEWYORK.COM/LISTS

14 | CRAIN’S NEW YORK BUSINESS | JUNE 20, 2016 20160620-NEWS--0015-NAT-CCI-CN_-- 6/17/2016 2:10 PM Page 1

REAL ESTATE | PRIVATELY OWNED PUBLIC SPACES

Trump World Tower, Trump Palace and Trump Plaza. In his 2000 book about POPS in New York, Harvard urban design professor Jerold Kayden praised Trump and architect Philip Johnson for renovating the public space at Trump International Hotel. “What was once an afterthought has become a usable plaza,” Kayden wrote. Under an agreement with the city, Trump Tower’s atrium must be publicly accessible every day from 8 a.m. to 10 p.m., and the gardens open when the building’s retailers are. OFF-LIMITS: Trump Tower’s But during his presidential campaign, Trump fourth-floor public garden has tended to treat the public space in his is often not open. namesake tower like a private backyard. The atrium has been closed for press conferences so many times during the campaign that in late May the Department of Buildings began inves- tigating whether Trump was violating his city agreement, which states the public space can be closed only four times a year with prior authorization. Finding a way in On June 23 the city’s Office of Administrative Trials and Hearings will determine whether rump Tower, one of the most Trump Tower violated another part of the agree- famous skyscrapers in the world, ment by failing to reinstall a 22- is home to one of New York’s foot-long bench in the atrium that was replaced Trump’s best-kept secrets: public gardens with unauthorized kiosks selling “Make America that offer respite far from the Great Again” caps and other campaign merchan- madding midtown crowd. Find- dise. Earlier this year, the city fined Trump ing the gardens isn’t easy, though, and getting Tower $4,000 for removing the bench and could secret Tinto them can be even harder. Should you enter levy a $10,000 fine for failing to put it back. In them, you’ll find that much of the flora is dead. January, a Trump Organization lawyer told The The gardens aren’t better known in part New York Times that the bench could be rein- because Trump Tower barely acknowledges stalled within four weeks. Five months later, it is garden they exist. The building’s public entrance on still missing. Fifth Avenue doesn’t mention them, though it Asked if Trump has shirked responsibilities A DEALTHAT LETTHE DEVELOPER features signs inviting people to the Trump concerning his tower’s public space, Gina Bar, Trump Grill, Trump Café, Trump Ice Pollara, president of the Municipal Art Society, ADD 20 STORIES TO TRUMP TOWER Cream Parlor and Trump Store. Eagle-eyed vis- answered: “He has.” But that does not make itors may spot a sign above the lobby elevators him unique among landlords, she added. For IN EXCHANGE FOR CREATING OPEN that discloses the gardens. Entering the eleva- instance, in 2002 the city fined Edward SPACE NETTED HIM $530 MILLION. tors requires getting past security guards who Milstein of the well-known real estate family seem to specialize in shooing THE PUBLIC GAIN? NOT MUCH people away. The gardens exist thanks to a TRUMP TOWER’S GARDENS SEEM deal Trump struck with the city in BY AARON ELSTEIN 1979 when he was developing the TO BE PUBLIC ONLYIN NAME. ONE tower. In exchange for creating TOURIST HAD “THE MOSTAWFUL, 15,000 square feet of public space in the gardens and atrium, he won EMBARRASSING, RUDE EXPERIENCE” a zoning variance that enabled him to increase his building’s height by approximately 200,000 square feet, or 20 $2,500 for restricting access to a public space floors. The additional condo or office space he owned on Third Avenue. A 2008 study by now represents virtually all of the 244,000 the Manhattan borough president’s office square feet that Trump still owns in his tower, found that 39% of POPS on the East Side had according to Forbes, a stake worth $530 mil- cut off access, failed to clear litter or commit- lion. City records show that in 2012 he took out ted some other violation. a $100 million mortgage on the tower and As for Trump Tower, its gardens sometimes pocketed a nearly $73 million distribution. appear to be public only in name. A tourist Trump Tower’s gardens and atrium are part from Texas named Jennifer Hovis had what she of a network of more than 500 privately owned called “the most awful, embarrassing, rude public spaces, or POPS, located in 320 build- experience” when she was turned away ings across the city. Some of the larger POPS last month. can be found in midtown inside the IBM “Initially [the security guard] wouldn’t Building or along 6½ Avenue, and downtown acknowledge us, but he stood in our way and at Zuccotti Park, where the Occupy Wall Street finally said there’s nothing up there worth see- crowd set up camp in 2011. ing, yet he let a bunch of other people onto the They also can be found in at least five elevator,” Hovis wrote on a site run by the Manhattan high-rises that aren’t owned out- Municipal Art Society and Advocates for right by Trump but bear his name, including Privately Owned Public Space. “I asked why all Trump SoHo, Trump International Hotel and those people were able to take the elevator,

BUCK ENNIS Tower on Central Park West and the East Side’s CONTINUED ON PAGE 16

JUNE 20, 2016 | CRAIN’S NEW YORK BUSINESS | 15 20160620-NEWS--0016-NAT-CCI-CN_-- 6/17/2016 2:17 PM Page 1

REAL ESTATE | PRIVATELY OWNED PUBLIC SPACES FINDING AN OASIS IN THE CITY if we couldn’t. He said they were members. Yet the sign above the elevator stated there was a public terrace. We were so embarrassed, and THROUGHOUT THE CITY ARE ABOUT 500 privately owned public spaces, or POPS, many of left very upset. It was our only negative experi- which were created by developers who got the right to build taller towers. Many are fairly mundane, ence during our five-day stay in New York.” consisting of a few tables and chairs. But the city’s ranks of POPS also contain some real gems. It took this reporter six attempts over two Tweet a picture of your favorites to @CrainsNewYork. weeks to get into the Trump gardens. The first try came on a recent Friday morning shortly after 9 a.m., when a security guard said the gardens didn’t open until 10 a.m. When I came back he changed that to 10:30. The third try came one afternoon at 5:15, and a guard said the gardens had closed 15 minutes earlier, even though they’re required to be open during store hours and the Starbucks on the second floor was selling iced coffees to tourists. My fourth failed attempt came when the building was closed for a Trump press conference slamming the media for asking if he had actually donated $6 million promised to veter- ans charities. My fifth attempt came on a wet Wednesday at noon. I asked an elevator guard when the garden is open. “It is open from 10 to 5,” he said. “May I visit?” I asked. “No.” “Why not?” BIG DRAW: The crowded out- “It has started to rain. The garden is now door plaza at 1166 Sixth Ave. closed.” owned by Edward J. Minskoff Eq- uities and Marsh & McLennan is typical of many midtown POPS. Lax oversight Fortunately, Maureen Hackett, Bryant Park’s director of horticulture, who had agreed to accompany me, asked a different security guard how to get to the gardens, and soon we were riding the escalator. The first garden, on the fourth floor overlook- GREENHOUSE: The State Teach- ing East 56th Street, offers little: a handful of ers Retirement System of Ohio hostas, a small maple tree, built-in granite bench- owns the indoor park at 590 es and a garbage can. Entry was blocked by a vel- Madison Ave., which is also vet rope and locked double doors. “They clearly known as the old IBM Building. spend a lot more on the lobby,” said Hackett. We took the escalator to the fifth-floor public garden overlooking East 57th Street. This space was considerably larger and featured a row of seven trees, probably Japanese maple or cherry, Hackett said, but she couldn’t be sure because four were dead. The dead trees were surrounded by colorful impatiens dwarfed by their giant containers. A large fountain had been turned off, perhaps because of the rain. There were 21 metal tables and 84 chairs of the type commonly found at airport food courts, plus bench seating for 64. Hackett surveyed the garden from behind the locked glass door and declared it “underwhelming.” “There’s a lot of potential here,” she said. “They need some bigger trees. They have these monumental containers, and for what? That’s a lot of volume that isn’t being used like it could be.” Pollara of the Municipal Art Society said landlords are required to maintain their building’s public spaces, which includes replacing PALEY PARK: Financed and developed by dead vegetation and keeping away rodents. The William Paley himself, the park on East 53rd Street is dedicated to the former CBS Department of Buildings has authority over chairman’s father, Samuel. these spaces, but Pollara said oversight is lax. A department spokesman said the agency has a team of about 20 inspectors dedicated to POPS. A Trump spokeswoman didn’t respond to requests for comment. The next day brought bright blue skies, so I sunny spot in the heart of midtown that I had all soaked in the rays while his aide rested in a went over at lunchtime. I entered Trump Tower to myself until Brian Sirota arrived. Sirota, a 76- shady spot. A couple of tourists wandered in, from the Madison Avenue side to avoid the ele- year-old retiree from the Upper East Side, dis- lingered for a minute or two, and left. vator guards and took the escalator to the gar- covered the Trump gardens a few weeks ago “This would be a really good place for a den on the fifth floor. The fountain was still off, when he decided to find out where the escala- meeting,” Sirota said. “I like to come here. and the dead trees were still there. But I had tors led to and has been stopping by regularly Almost no one knows about it. There’s hardly Ⅲ BUCK ENNIS finally made it into a Trump public garden, a since. He took a seat, put down his cane and ever anyone else.”

16 | CRAIN’S NEW YORK BUSINESS | JUNE 20, 2016 20160620-NEWS--0017-NAT-CCI-CN_-- 6/17/2016 2:11 PM Page 1

SMALL BUSINESS | THE NETWORK EFFECT

HOW TO WIN BUSINESS AND

THE PITCH: A BNI member promotes his legal practice at a recent meeting. INFLUENCE PEOPLE Ritual-laden, highly lucrative and not-so-easy-to-join professional networking groups are growing a following among ambitious New Yorkers BY AARON ELSTEIN

ichael Brathwaite was raised a page on LinkedIn. That may be one reason and sued his chapter leaders for allegedly bad- in the Bronx by his mother, why Microsoft announced last week that it mouthing his business. (His case was dis- whose job was changing bed- would acquire the business networking site for missed.) pans and sheets at Jacobi $26.2 billion. Still, however popular LinkedIn Networking groups have grown into a big Hospital. As a kid, he regular- may be, the most effective way to find a new business. In New York City, besides BNI, there is ly tuned in to Wall Street Week client is to be recommended by someone you Gotham Networking, Metropolitan Business Friday nights on PBS. After graduating from Iona know in real life, which explains why BNI and Network, the Network!Network!, My Net- MCollege in New Rochelle, Brathwaite launched his other less formal networking groups like working Group, Connecting to Greatness, Swap career as a stockbroker. Meetups are growing. BNI’s membership in the the Biz, Savor the Success, Sysdrink, 6-Figures, He was a bust at first, flailing around with cold city has more than doubled over the past Over 40 Females, Ellevate, the CEO Club, Young calls and fruitlessly handing out his business decade, to 1,500 people. Presidents’ Organization and the Executives’ card. Then a friend suggested he start attending Christie Bennett, a 27-year-old commercial Association of New York City, among many BNI, a networking group where accountants, real real estate broker and BNI member for three others. Groups hold mixers at chambers of com- estate brokers, contractors, personal trainers and years, said she attends a BNI or other network- merce, alumni receptions, athletic clubs and even cake-makers congregate weekly to hunt for ing group meeting almost every morning or has church basements. business. But after nearly a year’s worth of breakfast with someone she’s met at one. “It’s a New networks spring up constantly. Michael schmoozing, he wasn’t getting any referrals. The lot of meetings,” she said, “but it’s better than Goldberg, a networking pro for 16 years, last introverted Brathwaite came across as stiff and making cold calls.” year helped launch the Networking Group, robotic when he tried to imitate the smooth Many networking groups charge dues and which draws about 50 professionals despite its operators he’d seen on TV. expect their members to bring in guests to unimaginative name. “There is a real craving for Salvation came when he thought up an 11- replenish the crowd. They resemble multilevel face-to-face contact,” he said. One attendee at word slogan: “I’m Mike, the money man. I can marketing companies like Amway, with rules a recent meeting was an investment adviser help with your plan.” When Brathwaite began and rituals that strike some as cultlike. “It’s named Anthony Chen, who has started a gath- reciting those words at BNI meetings, the effect their way or the highway,” said John Bindela, a ering that is also called the Networking Group. was transformational. “It made me human,” he Bronx construction firm owner who left BNI “We’re not just about what you do; we’re about recalled. Some people smiled, others laughed. what makes you unique,” Chen said. Almost everyone began taking his calls. Sometimes connections made at networking Business acquaintances became personal events pay off in unexpected ways. Hoping to friends who steered clients his way. find investors in his theater productions, Vivek Today, the once-struggling stockbroker is a Tiwary paid the $3,000 annual fee to join a net- vice president who helps manage $250 million working group called Strategic Forum. at a major financial institution. He reckons that Eventually, a lawyer in the group introduced one-third of his business comes via people he him to an attorney for the John Lennon estate met at BNI, where today he is executive director who granted Tiwary permission to use Lennon- and co-owner of the New York City franchise McCartney songs in a TV series about the life of and oversees 51 chapters. Beatles manager Brian Epstein. “I would have “BNI changed my life,” Brathwaite said. “It THE DISCIPLE: Real estate never gotten the meeting or the song rights can change yours, too, if you’re willing to give lawyer Jay Zimner gets half his without the referral,” Tiwary said. what it takes.” business from BNI referrals. BNI is a sprawling enterprise, with nearly Many people find networking so awkward 200,000 members in 65 countries. About 18

BUCK ENNIS that they can’t bear to do any more than create CONTINUED ON PAGE 18

JUNE 20, 2016 | CRAIN’S NEW YORK BUSINESS | 17 20160620-NEWS--0018,0019-NAT-CCI-CN_-- 6/17/2016 2:11 PM Page 1

SMALL BUSINESS | THE NETWORK EFFECT

months ago, investment firm Pioneer Equity At a recent BNI meeting attended by more Partners acquired a majority stake for an esti- than 80 people in the basement of the Union mated $60 million. BNI’s 7,400 chapters out- Square Ballroom, a personal-injury lawyer said number Wendy’s fast-food restaurants by 900. he wanted to meet fitness trainers because they Its members are a committed bunch, paying provide “the best synergy.” An office-furniture about $450 in annual dues, which adds up to saleswoman asked for names of new office ten- about $90 million. Manhattan is BNI’s most suc- ants at 61 Broadway or 270 Madison Ave. A per- cessful metropolitan region in the world. “We son in “transformation education” asked for don’t always look at ourselves as a big business advice on how to get inside Condé Nast and or a corporation, but we really are,” observed Goldman Sachs. Members finish their pitch Robert Weinberg, a BNI member and vice pres- THE EVANGELIST: Jackie Frank, with their homemade jingle in call-and- a mortgage broker, helps BNI ident at a direct marketer. open new chapters in the city. response style, giving the room a vibe some- Though BNI does not advertise, revenue has where between a tent revival and a Junior risen by 50% since 2010, and leadership expects Achievement meeting. membership will more than double by 2020 as As Brathwaite discovered years ago, a mem- professionals in a digitally dominated world orable turn of phrase can make all the difference increasingly seek face-to-face interactions and friends together and said I’d do my best to refer in breaking through. An insurance agent offered as word spreads about the group’s networking business to them.” “Insure to be sure. But be sure to insure right. culture. That culture includes mandatory weekly Within a year, Misner had sketched out his Don’t trust your luck—call Chuck!” An meetings that start at 7 a.m. sharp and unyielding rules. First, to minimize competition for referrals, acupuncturist pitched “A jab well done.” A devotion to the many rules handed down by a no group could contain more than one represen- divorce lawyer quipped, “Marriages can fall founding guru, whose credo can be summed up tative of any profession. Members would meet apart, but you don’t have to!” Said a regulatory in BNI’s trademarked slogan: “Givers gain.” every week, with attendance rigorously enforced lawyer: “When Big Brother comes knocking, let “BNI isn’t a cult,” said Brathwaite. “It’s a to foster camaraderie. While the group wouldn’t me answer the door.” movement.” collect any money from business generated, all The hour’s worth of pitches and jingles is fol- referrals would be scrupulously tracked, and lowed by a member making a five-minute pres- “Don’t trust your luck—call Chuck!” members who failed to at least occasionally help entation, which at the Union Square meeting Truth be told, a lot of people hate network- another member would be weeded out. Potential concerned a “patented emotional education” ing. “Many understandably see it as brown- new members would be carefully vetted to ensure program. “Dr. Misner took it,” the speaker said. nosing, exploitative and inauthentic,” three sincere commitment to helping others in the The audience murmured in approval at the professors of management and organizational hope that their generosity would be reciprocated. mention of the BNI founder. Real estate lawyer behavior wrote in May’s Harvard Business Misner—who in 1993 got his doctorate in organi- Jay Zimner, a chapter vice president who gets Review. “Networking makes them feel uncom- zational behavior and in 2011 trademarked “Dr. more than half his business via BNI referrals, fortable and phony—even dirty.” Ivan Misner”—at first called his new organization described Misner as a “mythical figure” to Necessity forced Los Angeles-area manage- the Network, then Business Networking Inter- members, many of whom consult his nearly 20 ment consultant Ivan Misner to up his network- national and later BNI. books, among them: Avoiding the Networking ing game. After his biggest client went bust in Groups that deviate from Misner’s strict Disconnect: The Three R’s to Reconnect and I Love 1984, he struggled to find new customers at rules, such as by relaxing attendance require- Networking: A Story About Finding Your Inner events sponsored by his local chamber of com- ments, are expelled. “BNI works because of the Networker. merce and other business groups. With the help rules and accountability,” Misner said. Before wrapping up, members came to the of some similarly disgruntled businessmen and “Without them, you have a coffee klatch.” testimonial part of the meeting, standing up to -women, he began to think about creating a Gradually Misner’s networking method name which BNI members referred business to more effective referral system. “I realized we caught fire. By the early 1990s he was franchis- them and how much money it yielded. A writ- don’t teach networking in schools and no one ing the BNI name across the country. In 1996, ing coach thanked a member for referring knows to do this,” Misner recalled. “I put some Brathwaite and a business partner named Todd $1,200 worth of work, and a contractor thanked Hallinger bought the rights to operate BNI an architect for an $8,000 referral. A real estate chapters in New York City, even though Misner agent thanked a lawyer for a tip that eventually was skeptical that his vision would catch on led to a $550,000 commission. “It took three DOS AND DON’TS here. “The thinking was New Yorkers wouldn’t years to get that,” the agent exulted. help each other,” Brathwaite recalled, “because BNI doesn’t work for everyone. The unvar- MONICA PEARSON used to go to five business we’re not that nice.” nished hustle can be a turnoff, as can the score- networking events a week. The former Air Force Today, BNI membership is coveted in certain card distributed before every meeting that shows administrator, who is now CEO of a Manhattan- circles. “The minute I have an opening for a real members’ attendance and number of referrals. based tech-security firm called Secreliant, has a estate broker, I have 10 applications,” said It’s a poor fit for psychotherapists, or anyone few pointers to make the experience more pro- Jackie Frank, a mortgage broker who has helped whose clients require privacy. ductive—or at least less agonizing. organize 13 BNI chapters throughout the city. Jean Tang, who runs a copywriting firm, said ● Wear a shirt or jacket with at least two pock- BNI’s rigid structure pushes people to over- BNI helped her business when she joined about ets. Keep your own business cards in the right come their misgivings about networking and five years ago. But as she grew, the early-morning pocket, and the ones collected in the left. engage with strangers. “No one is really inter- meetings with small-business owners and sales ● Wear your name tag on your right side if you ested in your business card,” Brathwaite said. reps lacking marketing budgets wore on her. She are right-handed, so when you reach out to “You do a lot better when you connect with left last year. “After a while, it wasn’t worth the shake hands, people can see your name. someone personally and understand what they time,” Tang said. want and need.” BNI can also present conflicts. For example, ● If you can, make your own name tag and bring it Even so, stacks of business cards are passed if a personal-injury lawyer hears at a meeting to the event. The stick-on ones tend to fall off. around the tables at BNI meetings. So are slips of about a workplace accident, legal-industry ● A compliment is always a good way to get a paper that members pass to chapter leaders standards preclude the attorney from contact- conversation started. It’s usually safe to ask a detailing their referrals and topics of conversa- ing the injured directly. After the New York City man where he got his tie. If that doesn’t feel tion at one-on-one meetings with fellow mem- Bar Association raised concerns about BNI appropriate, ask the person if he or she has bers. But the heart of a BNI meeting is a ritual members soliciting business this way, the net- ever been to the networking event before. that resembles speed-dating. working group amended its code of conduct ● Before making your sales pitch, ask the person Each member or guest is expected to stand about a decade ago to say members must meet you’re talking to if there’s anything you can do up and give a 30-second pitch laying out who the ethical standards of their profession. to help him. A good question, if you are in a she is, what she does and whom she wants to BNI says its members referred $9.3 billion position to ask it, is, “Who is the one person I meet. An audience member raises a reminder worth of closed business to each other last year, could introduce you to here who could help you card when there’s 10 seconds left or if the pitch which averages to about $50,000 per person. get 10 clients?” — AARON ELSTEIN wanders. After 30 seconds, a bell rings and the But generally speaking, 20% of BNI members

BUCK ENNIS presenter has to sit down. account for 80% of the money, said Frank, the

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mortgage broker. (Her signature line is, “When you need a loan, don’t go to the bank. Call Jackie Frank.”) She also helps organize new BNI Big Brothers Big Sisters of New York City chapters in return for a 25% cut of the gross revenue. She’s now experimenting with neighborhood-focused chapters, including one in Washington Heights. “If I didn’t have a full- time job, I could launch a chapter every week,” she said. Generally, a chapter needs 30 members to achieve critical mass. NIGHT The economics of BNI work like this: A quarter of membership dues goes to BNI headquarters, which relocated from Southern California to Charlotte, North Carolina, after Misner sold a Wednesday, July 13, 2016 majority stake in late 2014 and handed the CEO post to an executive whose background is in franchising nonmedical home-care services for Cocktails • Dinner & Dessert • Casino senior citizens. (Misner, who remains the largest individual shareholder, is now “chief Cipriani 42nd Street 6:00pm - 10:00pm visionary officer.”) The other 75% is split among Brathwaite, fellow owners of the New York City franchise and those who develop new chapters. Based on current membership levels, HONORING BNI higher-ups share about $500,000 in annual Matt Borstein Dan Tishman fee revenue. “It’s not a great deal of money,” GLOBAL HEAD OF COMMERCIAL REAL ESTATE, PRINCIPAL, TISHMAN REALTY Brathwaite said. “But it’s good.” DEUTSCHE BANK SECURITIES INC. CHAIR, TISHMAN CONSTRUCTION His success has spawned copycats, many of VICE CHAIR, AECOM them BNI alumni. Goldberg has teamed up with Cynthia Greenawalt, who helped develop the SPECIAL GUEST: JORGE POSADA, FORMER CATCHER NEW YORK YANKEES BNI franchise in southern Florida, to build the Networking Group. “We hope to become a For additional information: please contact Camy Calve, at 212.218.4080 or [email protected] Design Courtesy of: Mint Advertising national organization like BNI,” Goldberg said. Their group takes a softer approach. Meetings are held after work rather than before, and every six weeks instead of weekly. There are no 30-second sales pitches or jingles. And a bottle of Dom Pérignon is awarded to the person who brings the most people. At a recent meeting in the basement of an East 42nd Street building, attendees answered written questions like, “What is the one thing that nobody knows about you?” Goldberg was a little disappointed by the turnout of 46 people. He’s hoping for more than 70 at the next one, July 27. “It takes time to build,” he said. Personal connections keep people coming back to networking groups and enduring the mediocre coffee and the sea of fresh faces eager to share business cards. Bennett, the young real estate broker (“With skill and grace, I find you office space”), noticed that her boss had built her entire business around the 10 networking groups she attends. Bennett acknowledges that BNI isn’t as helpful to her as it once was. “Leaving would be an emotional decision I’m not ready to make,” she said. “Am I getting so much from it? Probably not. But there are a lot of people there whom I like to see.” Ⅲ

THE OWNER: Michael Brathwaite, a financial adviser, helped bring BNI to New York 20 years ago. BUCK ENNIS

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the money from family,” he said. After they closed China for the most part.” Cash Is Increasingly King When on the apartment, they obtained fi nancing to pay back the loan, he said. Of course, there can be nefarious reasons It Comes to Buying New York City international buyers want to pay cash, too, ere are strategic fi nancial reasons buyers want to particularly at the very high end of the market. e Apartments pay cash, as well. Some don’t want to pay interest U.S. Treasury Department announced early this on a mortgage, for instance. Barron’s client who year that it would require real estate companies to hen showing an apartment at 585 Park viewed the Park Avenue apartment is among them. provide the names of foreign buyers of properties Ave. in Manhattan recently, Vickey “He is a Harvard graduate from the Upper East in Manhattan and Miami who use shell companies Barron, a licensed associate real estate Side,” said Barron. “He does not invest in stocks. such as LLCs to purchase them, in an anti-money Wbroker for Douglas Elliman, mentioned the building He has the money sitting in the bank. Why would laundering effort. e move is designed to prevent only allows buyers to fi nance 30% of the purchase. he pay even 3% interest if he doesn’t have to?” buyers from using money earned in illicit activities from buying real estate with it. “We’re paying cash, so it doesn’t matter,” the Barron has other clients who don’t want to deal buyer told her. with the reams of paperwork involved in getting a And even when cash deals are on the up-and-up, mortgage. “Some say, ‘I don’t want the hassle to not all brokers relish them. Many New York City brokers are having similar apply for a mortgage. I’m too busy. I’m running conversations with their clients. e percentage my own company,’” said Barron. “My experience is that all-cash, quick-to- “ My financial needs of condo sales in Manhattan that were all-cash in close deals rarely translate into exactly that,” said April 2015 was 55%, according to appraisal fi rm Some buyers want to avoid the steep mortgage- Cox, whose cash buyers have ranged from an NFL are complex, I trust Miller Samuels. recording tax in Manhattan by not getting a quarterback to a couple buying a $1.5 million home. mortgage, said James Cox Jr., an associate broker “ ey can be more of a pain-in-the-neck than another ere are many reasons buyers prefer to pay cash at Cox and Co., his group at Compass, who sells deal that’s fi nanced. At least when there is fi nancing, the professionals at for New York City real estate. e main one is to properties in the Upper West Side, Tribeca and there is a process. ey have an appraisal, a period of get an edge on competitors who are bidding on the in Brooklyn Heights. e tax is about 1.8% of the time when they have to get their documentation in, a same proprieties, say brokers. “It’s considered a closing price for loans under $500,000, and 1.925% commitment letter and then you close.” City National.” seller’s market,” said Julie Park, a real estate agent of deals above that. On a $3 million purchase, for with Level Group in Manhattan. “If they have a instance, the tax would be $57,750. Cox has recently been cash offer as opposed to a fi nancing offer, 100% of working on an all- the time they will go with the cash offer.” “It’s a big consideration for some people,” said cash deal that he says Bob Lieber Cox. “Certainly, your closing costs can become has become “utterly ©2016 City Bank National ©2016 e trend is sweeping all price points, from ultra- substantially less.” frustrating.” Executive Managing Director luxury apartments to deals under $1 million, brokers Island Capital Group say. Sandy Edry, a licensed real estate salesperson Foreign buyers are another key group of cash buyers. James Cox Jr. “I just sent a letter to the at Keller Williams NYC in New York City, said he is It can be diffi cult for them to get a mortgage. broker: You promised an SM seeing more cash deals than at any point in the past all-cash, quick-close deal. A fi nanced deal would Find your way up. 10 years. At a condo conversion his team is selling at Two years ago, Edry sold a 90-unit project in Flushing, have been closed by now,” he said. “I think the 69 Bennett Ave. in the Washington Heights area, at Queens, where he estimates that 80% of buyers paid cash buyer feels once they have the contract they Visit Findyourwayup.com/WealthNYC to learn more 184th Street, he said, about fi ve of the 15 units that cash. Most were Chinese. “I think it’s indicative of the have a lot of extra power and can jerk you around.” are closing are all cash. fact that a lot of folks are trying to get their money out about how we can help you plan for your future or of China into investments,” Edry said. Ultimately, though, cash buyers have a powerful call (917) 322-5245 to speak to an Advisor. “In the last year, where so many people were incentive to close, he adds. Buyers and sellers can losing out on bidding wars, cash just became so Many of the buyers from China who are paying only push the closing date by 30 days in New York. important that I think a lot of people did whatever cash today are not ultra-wealthy, he said. “ is “ e only thing I can tell my seller is that we’ll they could to pull the money together,” said Edry. is upper middle-class money,” he said. “ e close by July 2 or they will forego their $320,000 “I’ve seen instances where people have borrowed billionaires have already moved their money out of deposit,” said Cox. “We’ll close. I’m sure of it.” City National Wealth Planning CNB MEMBER FDIC

CRAIN'S Real Estate Section MECHS.indd 3 6/16/16 2:22 PM ©2016 City National Bank City National Wealth Planning “ CityNational.” at professionals the complex,trust are I needs Myfinancial call (917)322-5245tospeakanAdvisor. about how we canhelpyou planforyour future or Visit Findyourwayup.com/WealthNYC tolearnmore Find your wayup. Island Capital Group Executive Managing Director Bob Lieber SM CNB MEMBER FDIC MEMBER CNB ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS SUMMER IN THE CITY: REAL ESTATE HEATS UP

of people clamoring for space, among them vaca- neighborhoods such as SoHo, Chelsea and Tribeca, Demand Rises for Summer Rentals tioners, transplants relocating in the city and those where short-term rentals often go for more than members of the freelance economy who have the $4,000 a month, said Adams. ith college interns descending on the freedom to work from virtually anywhere with an city for summer jobs, Millie Wang, a real internet connection. Finding most of the sought-after properties already estate broker at Level Group in Man- booked, some renters are turning to other neighbor- Whattan has been busy fi nding rentals for them since “Everyone wants to be in New York for the sum- hoods, Adams said. “ ere are some hidden gems, winter. Often, students accept early offers from mer,” said David Adams, founder of the short-term where we see lower prices but fantastic locations,” he big investment banks and hedge funds, and to a rental site HomeSuite, based in San Francisco, said. Among them are Grammercy Park and Murray lesser extent from media companies, the autumn which requires a minimum stay of 30 days. “What Hill. “ ey are great locations, super walkable and before they arrive, and so some already book places we fi nd is by June, everything is booked up.” centrally located, and good for the commute,” he said. to stay in January and February. “ ey know how hard it is to fi nd a summer rental,” said Wang. Often, interns and other short-term renters from out But even for these lower-profi le neighborhoods, of town experience sticker shock, when they realize he added, there’s competition. “Everything in Man- ose who wait until the last minute are left scram- what it will cost to get a place. “ e interns always hattan is going to be very sought-after,” he said. bling. Renting a furnished one-bedroom in Manhattan come in starting with a price point of about $3,000 often costs $5,000 a month, said Wang, leading many a month for a two-bedroom,” said Wang. “I have to And the competition will only heat up in the coming to share their digs with a roommate or two. Tough as coach them and manage their expectations.” years, thanks to other trends in the housing market, it may be to fi nd affordable space, few consider living notes Adams. “More and more people are looking and commuting from farther away, like Jersey City. Some also aren’t prepared for the spike in prices for this kind of housing,” he said. “ ere are peo- that occurs as the inventory of available summer ple that are moving more often. ey are looking “ ey are pretty adamant that if they have in internship rentals shrinks. Prices in New York started escalat- for fl exible housing solutions more and more often. in the city they want to live in the city,” said Wang. ing this past May, said Adams. Currently, Home- Millennials are more interested in access over assets, “Somehow they always end up fi nding a place.” Suite—which has been renting in New York City and less-permanent solutions.” For those who want for two summers—has 2,000 listings, but Adams to ensure they get summer space, Adams offers one Although business slows down in New York City said, “there would be tens of thousands of rentals piece of advice: “Start looking, at the latest, in April.” as power brokers depart for vacation spots in the happening just for the summer in New York City.” Hamptons, it never really stops—and the city’s For more updates on the New York City summer real estate summer-rental scene refl ects that. ere are plenty As one might expect, rents are highest in popular market, go to crainsnewyork.com/summer-real-estate

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CRAIN'S Real Estate Section MECHS.indd 5 6/16/16 2:22 PM CRAIN’S Health Care Summit

DISRUPTIONDISRUPTION atat thethe Doctor’sDoctor’s OfficeOffice Crain’s is bringing together doctors from OPENING KEYNOTE SPEAKER: practices large and small, as well as Monday, June 27, 2016 urgent-care providers, to examine how they TOM X. LEE, M.D. Founder and CEO New York Athletic Club are adapting to upheavals in health care One Medical Group 180 Central Park South and the implications for costs and quality. 8:00 a.m. – 8:30 a.m. Registration and Networking Breakfast PANEL 1: Surviving Health Care Reform 8:30 a.m. – 12:00 p.m. Program Cost to Attend: $300 for individual ticket(s) $3,000 for table(s) of 10 You must be pre-registered to attend this event. No refunds permitted. MARGARET LEWIN RICHARD MOREL, M.D., MMM SUMIR SAHGAL, M.D. ADAM STRACHER, M.D. M.D., FACP Medical Director & Vice Chief Medical Director, Primary For more event information: Internist, New York President, WESTMED Ofﬁ cer, Founder Care Division, Weill Cornell Ashlee Schuppius Physicians Medical Group Essen Health Care Physician Organization 212-210-0739 PANEL 2: Urgent Care Upstarts [email protected] For sponsorship opportunities: Irene Bar-Am 212-210-0133 [email protected]

STEVEN BUSSEY MICHAEL GOLDSTEIN, M.D., J.D. TODD LATZ RICHARD PARK, M.D. Chief of Ambulatory President, New York County Chief Executive Ofﬁ cer Chief Executive REGISTER TODAY Care, New York City Medical Society GoHealth Urgent Care Ofﬁ cer, CityMD » « crainsnewyork.com/events-hcjune2016 Health + Hospitals Supporting Sponsor: TO PLACE A CLASSIFIED AD, CALL 1 800 444 6007 OR VISIT CRAINSNEWYORK.COM

POSITION PUBLIC & LEGAL NOTICES AVAILABLE Notice of Qualification of Cyber Risk Notice of Qualification of Distinguished Notice of Qualification of APOLLO Developer Management, LLC. App. for Auth. filed Capital LLC. App. for Auth. filed with Secy. PRINCIPAL HOLDINGS XI, LLC Appl. for Citadel LLC – New York, NY with Secy. of State of NY (SSNY) on of State of NY (SSNY) on 5/25/16. Office Auth. filed with Secy. of State of NY Rspnsble for dvlpmnt of sftwre systs that 5/27/16. Office location: NY County. location: NY County. LLC formed in Del- (SSNY) on 05/18/16. Office location: supprt Glbl Fixed Income Systematic Trd’g LLC formed in Delaware (DE) on aware (DE) on 5/16/16. SSNY desig- NY County. LLC formed in Anguilla team. F/T. Reqs Bach’s dgr in CS, Eng, 4/8/13. SSNY designated as agent of nated as agent of LLC upon whom process on 04/13/15. Princ. office of LLC: or rel fld & 1 yr exp in job offered or LLC upon whom process against it may against it may be served. SSNY shall 9 W. 57th St., NY, NY 10019. SSNY w/ C++ in lg scale codebase w/ at least be served. SSNY shall mail process to: mail process to the principal business designated as agent of LLC upon whom 100,000 lines of code. All stated exp Capitol Services, Inc., 1218 Central location of LLC: 1180 Ave. of the Americas, process against it may be served. SSNY must incl: Python in Unix/Linux & Windows Ave., Ste. 100, Albany, NY 12205. DE Fl. 16, NY, NY 10036. DE address of shall mail process to c/o Apollo Global envrnmnt; SQL & Sybase; XML; WPF; C#; address of LLC: 1675 South State LLC: c/o 3H Corporate Services, LLC, Management, LLC at the princ. office Visual Studio; event driven program’g & high-frequency/real-time systs in finan St., Ste. B, Dover, DE 19901. Arts. of 1201 N. Orange St., Ste. 710, Wilming- of the LLC. Delaware addr. of LLC: Cor- envrnmnt; Agile sftwre dvlpmnt mdl; & Org. filed with DE Secy. of State, 401 ton, DE 19801. Arts. of Org. filed with poration Service Co., 2711 Centerville wrk’g w/ interest rate prdcts. Resumes: Federal St., Ste. 4, Dover, DE 19901. DE Secy. of State, 401 Federal St., Ste. Rd., Ste. 400, Wilmington, DE 19808. ER/LW, Attn:R-0257, Citadel LLC, 131 S. Purpose: any lawful act or activity. 4, Dover, DE 19901. Purpose: invest- Cert. of Form. filed with Secy. of State Dearborn St, 32nd Fl, Chicago, IL 60603. ment holding companies and any other of DE, John G. Townsend Bldg., 401 NOTICE OF FORMATION OF OHM NYC, purposes permitted by applicable law. Federal St., Ste. 4, Dover, DE 19901. LLC. Articles of Organization of OHM Purpose: Any lawful activity. AVP/Quantitative Analyst NYC, LLC were filed with the New York Notice of Formation of MARGOT WEIL (AllianceBernstein L.P. - New York, NY) State Department of State on January PSYCHOLOGY, LLC Arts. of Org. filed Notice of Formation of JS Psychological, Cndct quant & stat rsrch as well as 5, 2016. Office Location: New York with Secy. of State of NY (SSNY) on PLLC. Arts. of Org. filed with Secy. of 05/12/16. Office location: NY County. State of NY (SSNY) on 5/19/16. Office portfolio mgmt for various invstmnt County, New York. The Secretary of State of New York was designated agent Princ. office of PLLC: 122 E. 82nd St., location: NY County. SSNY designated portfolios. F/T. Reqs Mast’s dgr in for service of process. The Secretary of NY, NY 10028. SSNY designated as as agent of LLC upon whom process Finan, Econ, Ops Rsrch, Info Eng or rel State of New York shall mail copies of agent of PLLC upon whom process against against it may be served. SSNY shall mail quant fld & 2 yrs exp in job offered or any process served against the limited it may be served. SSNY shall mail pro- process to: 185 Madison Ave., #15-07, NY, cndct’g finan quant rsrch at a lead’g liability company to the company at cess to the PLLC at the addr. of its princ. NY 10016. Purpose: any lawful activity. 120 W. 45th St., New York, NY 10036. office. Purpose: Psychology practice. invstmnt mgmt firm. All stated exp must Purpose: any lawful purpose or activity. Notice of Formation of 551 West 21st incl follow’g: utiliz’g or build’g stat mdls Notice of Formation of Apex Global, LLC, St Holdings, LLC. Arts. of Org. filed with & tools in finan; wrk’g w/ US historical Notice of Qual. of 623 Halsey Lender, Art. of Org. filed with Sec’y of State (SSNY) NY Dept. of State on 4/22/16. Office data sets, specifically w/ respect to fi- LLC, Auth. filed Sec’y of State (SSNY) on 2/2/16. Office location: NY County. location: NY County. Sec. of State desig- nan futures; wrk’g w/ transaction costs 12/29/15. Office loc: NY County. LLC SSNY designated as agent of LLC upon nated agent of LLC upon whom process whom process against it may be served. against it may be served and shall mail & relevant data sources; portfolio con- org. in DE 12/23/15. SSNY desig. as agent of LLC upon whom proc. against SSNY shall mail copy of process to Cecilia process to: Duval & Stachenfeld LLP, struction, optimization & factor rsrch; it may be served. SSNY shall mail copy Soh, 315 W. 36th St., Ste. 17B, NY, NY c/o Alan Cohen, 555 Madison Ave., 6th & prgrm’g in Python, SQL, Matlab, R, of proc. to 256 W. 116th St., 2nd Fl., 10018. Purpose: any lawful activities. Fl., NY, NY 10022, principal business or SAS. Resumes: J. Alvia, AllianceBer- NY, NY 10026. DE office addr.: CSC, address. Purpose: all lawful purposes. nstein L.P., 1345 Ave of the Americas, 2711 Centerville Rd., Wilmington, DE RACHOK LLC. Art. of Org. filed with the 19808. Cert. of Form. on file: SSDE, SSNY on 05/09/16. Office: New York Notice of Formation of GEORGE H. New York, NY 10105. Job ID: NEWHFU. Townsend Bldg., Dover, DE 19901. County. SSNY designated as agent of PRICE LLC Arts. of Org. filed with Secy. Purp: any lawful activities the LLC upon whom process against it of State of NY (SSNY) on 05/02/16. may be served. SSNY shall mail copy Office location: NY County. SSNY PUBLIC & LEGAL NOTICE OF FORMATION OF of process to the LLC, 2 Rector Street, designated as agent of LLC upon whom NOTICES PROGRESSIVECAREER LLC. Articles of Suite 903, New York, NY 10006. process against it may be served. SSNY Organization filed with the Secretary of Purpose: Any lawful purpose. shall mail process to c/o Stacy Cochran, State of NY (SSNY) on 04/19/2016. 90 W. Broadway, 7th Fl., NY, NY 10007. Notice of Formation of FLOWER SHOP Purpose: Any lawful activity. BRIGHTON, LLC Arts. of Org. filed with Office location: NEW YORK County. TWO EIGHTEEN LLC. Art. of Org. filed SSNY has been designated as agent with the SSNY on 05/09/16. Office: Secy. of State of NY (SSNY) on 05/10/16. Notice of formation of Life By Dru LLC. Office location: NY County. Princ. office upon whom process against it may New York County. SSNY designated as be served. The Post Office address to agent of the LLC upon whom process Arts of org filled with secy. of State of LLC: Windsor Properties, Attn: Paul of NY (SSNY) on 2/2/2016. Office D. Glantz, 99 Park Ave., NY, NY 10016. which the SSNY shall mail a copy of any against it may be served. SSNY shall process against the LLC served upon mail copy of process to the LLC, 2 Location: NY County. SSNY designated SSNY designated as agent of LLC upon agent upon whom process may be whom process against it may be served. him/her is: 220 RIVERSIDE BOULEVARD Rector Street, Suite 903, New York, NY APARTMENT 28F NEW YORK, NY 10069 10006. Purpose: Any lawful purpose. served against LLC to principal busi- SSNY shall mail process to the LLC at ness address: 460 W. 149th St. APT 62 the addr. of its princ. office. Purpose: The principal business address of the LLC Notice of Formation of EATALY NY FIDI, NY, NY 10031. Purpose: any lawful act. Any lawful activity. is: 220 RIVERSIDE BOULEVARD APART- MENT 28F NEW YORK, NY 10069 LLC. Arts. of Org. filed with Secy. of State Purpose: any lawful act or activity. of NY (SSNY) on 7/11/14. Office loca- Notice of Qualification of Arosa Notice of Formation of 43 CHARLTON tion: NY County. SSNY designated as agent Midstream GP LLC. Authority filed LLC. Arts. of Org. filed with Secy. of Notice of Qual. of 552 Gates Lender, of LLC upon whom process against it with NY Dept. of State on 5/6/16. State of NY (SSNY) on 06/07/16. Office LLC, Auth. filed Sec’y of State (SSNY) may be served. SSNY shall mail process Office location: NY County. LLC formed location: NY County. SSNY designated 10/29/15. Office loc: NY County. LLC to: c/o Julie Lee, 45 E. 20th St., 9thFl., NY, in DE on 3/3/16. NY Sec. of State as agent of LLC upon whom process org. in DE 10/27/15. SSNY desig. as NY 10003. Purpose: any lawful activity. designated agent of LLC upon whom against it may be served. SSNY shall mail agent of LLC upon whom proc. against process against it may be served and process to c/o Julie M. Bradlow, Esq., it may be served. SSNY shall mail copy Notice of formation of MED KITCHN, shall mail process to: 120 W. 45th St., 2820 Selwyn Ave., Box 726, Charlotte, of proc. to 256 W. 116th St., 2nd Fl., LLC. Arts of Org filed with Secy. of State of Ste. 3700, NY, NY 10036, principal NC 28209. Purpose: Any lawful activity. NY, NY 10026. DE office addr.: CSC, NY (SSNY) on 5/6/2016. Office location: business address. DE address of LLC: 2711 Centerville Rd., Wilmington, DE NY County. SSNY designated agent upon National Corporate Research, Ltd., 850 NOTICE OF QUALIFICATION OF 19808. Cert. of Form. on file: SSDE, whom process may be served against New Burton Rd., Ste. 201, Dover, DE OHM CONCESSION GROUP LLC. Townsend Bldg., Dover, DE 19901. LLC to: 7014 13th Ave #202 Brooklyn, 19904. Cert. of Form. filed with DE Sec. Application for Authority of OHM Con- Purp: any lawful activities. NY 11228. Principal business address: of State, Townsend Bldg., Dover, DE cession Group LLC was filed with the 41 W 82nd St. #1C NY, NY 10024. 19901. Purpose: any lawful activity. New York State Department of State on Notice of Qualification of Consolidated March 14 2016. The LLC was formed Energy Solutions LP. Authority filed with Notice of Qualification of Convene Notice of Qualification of 10MSW 21A, in Missouri on January 13, 1998.Office NY Dept. of State on 5/20/16. NYS fict. 780 Third Avenue, LLC. Authority filed LLC Appl. for Auth. filed with Secy. of Location: New York County, New York. name: Consolidated Energy Solutions USA with NY Dept. of State on 4/19/16. State of NY (SSNY) on 05/03/16. The Secretary of State of New York LP. Office location: NY County. Princ. bus. Office location: NY County. Princ. bus. Office location: NY County. LLC formed was designated agent for service of addr.: 1920 Yonge St., Ste. 200, Toronto, addr.: 366 Madison Ave., 7th Fl., in Delaware (DE) on 04/06/16. Princ. process. The Secretary of State of New ON M4S 3E2 Canada. LP formed in DE NY, NY 10017. LLC formed in DE on office of LLC: 10 Madison Sq. West, Unit York shall mail copies of any process on 12/8/15. NY Sec. of State designated 3/17/16. NY Sec. of State designat- 21A, NY, NY 10010. SSNY designated served against the limited liability agent of LP upon whom process against it ed agent of LLC upon whom process as agent of LLC upon whom process company to the company at 120 W. may be served and shall mail process to: against it may be served and shall against it may be served. SSNY shall 45th St., New York, NY 10036. The c/o CT Corporation System, 111 8th Ave., mail process to: Corporation Service mail process to c/o Corporation Service Missouri address of the LLC is 10812 NY, NY 10011, regd. agent upon whom Co., 80 State St., Albany, NY 12207, Co., 80 State St., Albany, NY 12207- St. Charles Rock Rd., St. Ann, Missouri process may be served. DE addr. of LP: regd. agent upon whom process may 2543. DE addr. of LLC: 2711 Centerville 63074. The Articles of Organization 1209 Orange St., Wilmington, DE 19801. be served. DE addr. of LLC: 2711 Rd., Ste. 400, Wilmington, DE 19808. of the LLC are filed with the Missouri Name/addr. of genl. ptr. available from Centerville Rd., Ste. 400, Wilmington, DE Cert. of Form. filed with Secy. of State, Secretary of State, 600 West Main NY Sec. of State. Cert. of LP filed with DE 19808. Cert. of Form. filed with DE Sec. DE Div. of Corps., John G. Townsend Street, Jefferson City, Missouri 65101. Sec. of State, 401 Federal St., Dover, DE of State, 401 Federal St., Dover, DE Bldg., 401 Federal St. - Ste. 4, Dover, Purpose: any lawful purpose or activity. 19901. Purpose: all lawful purposes. 19901. Purpose: all lawful purposes. DE 19901. Purpose: Any lawful activity.

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PUBLIC & LEGAL NOTICES

NOTICE OF FORMATION OF Alpha Vari- Notice of Qualification of HALLETTS Notice of Qualification of HALLETTS Notice of Formation of AJAX TICKETING ance Solutions. Articles of Organization INVESTORS BUILDING 2 LLC. Appl. for INVESTORS BUILDING 1 LLC. Appl. for LLC Arts. of Org. filed with Secy. of State filed with the Secretary of State of NY Auth. filed with Secy. of State of NY Auth. filed with Secy. of State of NY of NY (SSNY) on 06/09/16. Office loca- (SSNY) on 2/08/16. Office location: NEW (SSNY) on 05/27/16. Office location: (SSNY) on 05/27/16. Office location: tion: NY County. SSNY designated as agent YORK County. SSNY has been designated NY County. LLC formed in Delaware NY County. LLC formed in Delaware of LLC upon whom process against it may as agent upon whom process against it (DE) on 05/26/16. SSNY designated (DE) on 09/16/15. SSNY designated be served. SSNY shall mail process to may be served. The Post Office address as agent of LLC upon whom process as agent of LLC upon whom process Corporation Service Co., 80 State St., to which the SSNY shall mail a copy of against it may be served. SSNY shall against it may be served. SSNY shall Albany, NY 12207, regd. agent upon any process against the LLC served mail process to c/o Royal Realty Corp., mail process to c/o Royal Realty Corp., whom and at which process may be upon him/her is: CORPORATION SER- Attn: Corporate Counsel, One Bryant Attn: Corporate Counsel, One Bryant served. Purpose: Any lawful activity. VICE COMPANY 80 STATE ST. ALBANY, Park, NY, NY 10036. DE addr. of LLC: Park, NY, NY 10036. DE addr. of LLC: NY 12207. The principal business c/o Corporation Service Co., 2711 c/o Corporation Service Co., 2711 Notice of Formation of Bravest Warriors address of the LLC is: 5 East 44th St Centerville Rd., Ste. 400, Wilmington, Centerville Rd., Ste. 400, Wilmington, LLC. Arts. of Org. filed with NY Dept. of Suite 4A New York New York 10017. DE 19808. Cert. of Form. filed with DE 19808. Cert. of Form. filed with State on 4/1/16. Office location: NY Purpose: any lawful act or activity. Secy. of State of DE, John G. Townsend Secy. of State of DE, John G. Townsend County. Sec. of State designated agent Bldg., 401 Federal St., Ste.4, Dover, DE Bldg., 401 Federal St., Ste. 4, Dover, of LLC upon whom process against it 19901. Purpose: Any lawful activity. DE 19901. Purpose: Any lawful activity. Notice of Formation of CON EDISON may be served and shall mail process GAS PIPELINE AND STORAGE NORTH- to the principal business address: EAST, LLC Arts. of Org. filed with Secy. Notice of Formation of EASTSIDE Notice of Qual. of Baccarat 42A Owner c/o Spielman Koenigsberg & Parker, of State of NY (SSNY) on 04/13/16. Of- ADVANCED MEDICAL LLC Arts. of Org. LLC, Auth. filed Sec’y of State (SSNY) LLP, 1745 Broadway, 18th Fl., NY, NY fice location: NY County. Princ. office of filed with Secy. of State of NY (SSNY) 1/25/16. Off. loc: NY Co. LLC org. in DE 10019, Attn: Richard Koenigsberg, LLC: 4 Irving Pl., NY, NY 10003. SSNY on 05/20/16. Office location: NY 1/11/16. SSNY desig. as agent of LLC CPA. Purpose: any lawful activity. designated as agent of LLC upon whom County. Princ. office of LLC: 408 Jay St., upon whom proc. against it may be served. SSNY shall mail copy of proc. to process against it may be served SSNY Brooklyn, NY 11201. SSNY designated Notice of Formation of KEYSTONE shall mail process to Corporation Service as agent of LLC upon whom process NRAI, 111 Eighth Ave., NY, NY 10011, the Reg. Agt. upon whom proc. may be REALTY NEW YORK CITY LLC Arts. of Org. Co., 80 State St., Albany, NY 12207-2543. against it may be served. SSNY shall filed with Secy. of State of NY (SSNY) Purpose: Gas pipeline and storage. mail process to the LLC, c/o Michael served. DE office addr.: 160 Greentree Dr., Ste. 101, Dover, DE 19904. Cert. of Form. on 06/18/02. Office location: NY County. Amoashiy, M.D. at the princ. office of Princ. office of LLC: 15 Park Row, Ste. the LLC. Purpose: Any lawful activity. on file: SSDE, Townsend Bldg., Dover, Notice of Formation of HUDSON DE 19901. Purp: any lawful activities. 23N, NY, NY 10038. SSNY designated BERGEN LLC Arts. of Org. filed with as agent of LLC upon whom process Secy. of State of NY (SSNY) on 05/24/16. Notice of Formation of DBA NY Office, against it may be served. SSNY shall mail Notice of Formation of 785 FIFTH AVE Office location: NY County. Princ. office LLC. Arts. of Org. filed with NY Dept. of process to the LLC at the addr. of its princ. REALESTATE LLC Arts. of Org. filed with of LLC: 826 Broadway, 11th Fl., NY, NY State on 4/14/16. Office location: NY office. Purpose: Any lawful activity. Secy. of State of NY (SSNY) on 05/03/16. 10003. SSNY designated as agent of County. Princ. bus. addr.: 27 W. 24th Office location: NY County. Princ. office LLC upon whom process against it may St., Ste. 10B, NY, NY 10010. Sec. of of LLC: 151 W. 46th St., 10th Fl., NY, Notice of Formation of EATALY ROCK be served. SSNY shall mail process to State designated agent of LLC upon NY 10036. SSNY designated as agent CENTER LLC amended to EATALY USA the LLC, 826 Broadway, NY, NY 10003. whom process against it may be served of LLC upon whom process against it LLC. Arts. of Org. filed with Secy. of Purpose: Any lawful activity. and shall mail process to: National may be served. SSNY shall mail process State of NY (SSNY) on 6/27/08. Office Corporate Research, Ltd., 10 E. 40th to the LLC at the addr.of its princ. office. location: NY County. SSNY designated St., 10th Fl., NY, NY 10016, regd. agent Notice of Formation of FLOWER SHOP Purpose: Any lawful activity. as agent of LLC upon whom process CORTLANDVILLE, LLC Arts. of Org. filed upon whom process may be served. against it may be served. SSNY shall with Secy. of State of NY (SSNY) on Purpose: any lawful activity. mail process to: The LLC, c/o Julie Lee, Name of LLC: High Line Advisory Services 05/10/16. Office location: NY County. 45 E. 20th St., 9th Fl., NY, NY 10003. LLC. Arts. of Org. filed with NY Dept. of Princ. office of LLC: Windsor Properties, Purpose: any lawful activity. Notice of Formation: Glinnotech LLC State: 5/31/16. Office loc.: NY Co. Sec. Attn: Paul D. Glantz, 99 Park Ave., NY, Art. Of Org. filed with Sec. of State of of State designated agent of LLC upon NY 10016. SSNY designated as agent NY (SSNY) on 01/12/2016. Office Loc: whom process against it may be served Notice of Formation of FLOWER SHOP of LLC upon whom process against it New York County. SSNY designated and shall mail process to: Business Filings CAMILLUS, LLC Arts. of Org. filed with may be served. SSNY shall mail process as agent of LLC upon whom process Inc., 187 Wolf Rd., Ste. 101, Albany, NY Secy. of State of NY (SSNY) on 05/10/16. to the LLC at the addr. of its princ. against it may be served. SSNY shall 12205, regd. agt. upon whom process Office location: NY County. Princ. office office. Purpose: Any lawful activity. mail process to: 330 E 38th Street Unit may be served. Purpose: any lawful act. of LLC: Windsor Properties, Attn: Paul 6B, NEW YORK, NY 10016 Purpose: D. Glantz, 99 Park Ave., NY, NY 10016. Notice of Qualification of Transamerica Any lawful activity. Notice of Qualification of 286 SPRING SSNY designated as agent of LLC upon Retirement Insurance Agency, LLC. PH LLC. Appl. for Auth. filed with Secy. whom process against it may be served. Authority filed with NY Dept. of State on Notice of Qualification of 62-60 99th of State of NY (SSNY) on 06/06/16. SSNY shall mail process to the LLC at 1/7/2016. NYS fictitious name: TRIA Street Owner II LLC. Authority filed with Office location: NY County. LLC formed the addr. of its princ. office. Purpose: Insurance Agency LLC. Office location: NY Dept. of State on 5/13/16. Office in Delaware (DE) on 05/11/16. Princ. Any lawful activity. NY County. Princ. bus. addr.: 408 St. location: NY County. Princ. bus. addr.: office of LLC: BAM Administrative Ser- Peter St., Ste. 230, St. Paul, MN 55102. 825 3rd Ave., Fl 37, NY, NY 10022. vices LLC, 1370 Ave. of the Americas, Notice of Qual. of Athelstan Advisors LLC formed in DE on 4/3/2013. NY LLC formed in DE on 5/10/16. NY Sec. 32nd Fl., NY, NY 10019. SSNY des- LLC, Auth. filed Sec’y of State (SSNY) Sec. of State designated agent of LLC of State designated agent of LLC upon ignated as agent of LLC upon whom 6/17/15. Off. loc: NY Co. LLC org. in upon whom process against it may be whom process against it may be served process against it may be served. SSNY DE 6/2/15. SSNY desig. as agent of served and shall mail process to: c/o and shall mail process to: c/o CT Corporation shall mail process to c/o Corporation LLC upon whom proc. against it may be CT Corporation System, 111 8th Ave., System, 111 8th Ave., NY, NY 10011, Service Co., 80 State St., Albany, NY served. SSNY shall mail copy of proc. NY, NY 10011, regd. agent upon whom regd. agent upon whom process may 12207-2543. DE addr. of LLC: 2711 to Att: Devin Geoghegan, 15 W. 20th process may be served. DE addr. of be served. DE addr. of LLC: Corporation Centerville Rd., Ste. 400, Wilmington, St., NY, NY 10011. DE off. addr.: CSC, LLC: 1209 Orange St., Wilmington, DE Trust Co., 1209 Orange St., Wilmington, DE 19808. Cert. of Form. filed with 2711 Centerville Rd., Wilmington, DE 19801. Cert. of Form. filed with DE Sec. DE 19801. Cert. of Form. filed with DE Secy. of State, John G. Townsend Bldg., 19808. Cert. of Form. on file: SSDE, of State, 401 Federal St., Dover, DE Sec. of State, 401 Federal St., Dover, 401 Federal St. - Ste. 4, Dover, DE Townsend Bldg., Dover, DE 19901. 19901. Purpose: all lawful purposes. DE 19901. Purpose: all lawful purposes. 19901. Purpose: Any lawful activity. Purp: any lawful activities.

WANT TO GET YOUR COMPANY IN FRONT OF 250,000 INFLUENTIAL BUSINESS PROFESSIONALS? Contact Joanne Barbieri at 212-210-0189 for classified advertising opportunities.

JUNE 20, 2016 | CRAIN’S NEW YORK BUSINESS | 27 20160620-NEWS--0028-NAT-CCI-CN_-- 6/17/2016 6:24 PM Page 1

GOTHAM GIGS

RABBINICAL ASSEMBLY: Mira Rivera is the only full-time rabbi at Mount Sinai Medical System’s Fifth Avenue hospital

Ministering to the souls of the sick RABBI MIRA RIVERA A former modern dancer,raised a Catholic,Mira Rivera is the in-house rabbi at Mount Sinai Hospital WHY SHE DOES IT “I can articulate he signs pointing Mira Rivera toward becom- cultural history, so there is a real connection.” what I am feeling in my heart.” ing a rabbi were always there, but it took Her Catholic parents met while students at Johns FAMILY Rivera met pianist Jerome decades before she finally followed them. A Hopkins University. Rivera was born in Detroit but was Korman, now musical director of the former principal dancer with the Martha raised from age 2 outside Manila, partly by a grandmoth- National Dance Institute, when she TGraham Dance Company, Rivera was raised and attend- er with some Jewish roots. After dancing with Graham was dancing with Martha Graham. ed Catholic school in the Philippines, earned a B.F.A. in and graduating from NYU, Rivera spent several years They married after a six-year courtship film and television from NYU, is a devoted working with social-justice groups in and have two children: Arielle, a stu- wife and mother of two college students, I had a India, Israel and elsewhere around the dent at Davidson College in North “ Carolina, and Benjamin, who is at and lives and dies with her beloved New profound globe. At 21, she said, “I had a profound York Knicks. experience at the Wailing Wall in Brandeis University, outside Boston. Now she is the only full-time rabbi at experience at Jerusalem. A catharsis of tears started to STAGE While at NYU, she toured as a the sprawling main campus of Mount the Wailing flow, and I said, ‘I belong here.’ ” dancer in The King and I, starring Stacy Sinai Hospital on upper Fifth Avenue. Wall in Back in New York, she married (her Keach as the king. “When I was thinking of attending rab- Jerusalem husband is Jewish), raised a family and RITUAL The Upper West Side resi- binical school, my own rabbi [Marshall ” spent time teaching dance at B’nai dent cherishes her daily meditative Meyer of B’nai Jeshurun on West 88th Jeshurun. Finally, the mother of one of walk to work across Central Park. Street] asked me if I was prepared to face being mar- her students asked when she was going to rabbinical TEAM DREAM She hopes to lead ginalized—as a woman, a Jew, as an Asian. school. Rivera graduated from the conservative her own congregation one day. Or “I told him that when I was dancing, Martha Jewish Theological Seminary in 2015 and joined coach the New York Knicks. “I have an would tell us never to bow down to an audience, but Mount Sinai last September. She ministers to patients ongoing low-grade Knicks fever,” to stand and look forward, always look up and for- in five languages: Tagalog, Hebrew, Spanish, Rivera said. “I so wanted Phil Jackson ward. So that’s what I have done.” Her background Sanskrit and English. She recently meditated with a to come to the rescue for us. It hasn’t has been a help during her time at Mount Sinai: “The patient who was a Hare Krishna devotee. “You come worked out yet, but I’m still hoping he complexities and crossroads that I represent, well, a across every belief among patients in a large hospital can turn it around!” — TIMOTHY MCDARRAH BUCK ENNIS lot of the people I meet also share a varied family and like this,” she said.

28 | CRAIN’S NEW YORK BUSINESS | JUNE 20, 2016 20160620-NEWS--0029-NAT-CCI-CN_-- 6/17/2016 6:25 PM Page 1

SNAPS

Hamilton creator helps Public raise a record $2.5 million The Public Theater raised a record $2.5 million at its gala June 6 at the Delacorte Theater in Central Park—home to Shakespeare in the Park. This year’s performance highlighted Shakespeare’s influence on art and discourse in America. Oskar Eustis, the Public’s artistic director, noted the great contemporary writers at the event, including Lin-Manuel Miranda, whose musical Hamilton debuted at the Public before moving to Broadway and won 11 Tonys this year.

Patrick Willingham, executive director of the Public Theater; Jeff Barker, president of Bank of America New York State; and Oskar Eustis at the Public Theater’s gala, which honored the Bank of America.

Meryl Streep made waves and surprised the Public’s audience by performing as Donald Trump in a Lin-Manuel Miranda with his wife, duet with Christine Baranski as Vanessa Nadal, his mother, Luz Hillary Clinton. Towns-Miranda, and his father, Luis Miranda, at the theater’s fundraiser.

$1.7 million to help kids prep for college Special night for Hospital for Special Surgery

J.D. Hoye, president Honoree Aldo of NAF (formerly the Papone, senior National Academy adviser for Foundation), and American Express, Barbara Benioff receiving an award Friedman, a board from Dr. Thomas member. The June 1 Sculco, surgeon- event raised $1.7 mil- in-chief emeritus of lion to help the non- the Hospital for profit prepare high Special Surgery, at school students for the gala, which college and careers. raised $3.3 million for the hospital.

Juanita Logan, business development senior manager at St. Louis-based World Wide Technology; David Keen, director of diversity business development at World Wide Technology; and Ann Marr, vice-president of human resources at World Wide Kenneth Chenault, CEO of American Express, with his wife, Kathryn, a trustee Technology, at the NAF gala at the Mandarin Oriental. for the Hospital for Special Surgery, and Tom Brokaw, NBC News senior corre- spondent, at the June 6 fundraiser at the Waldorf Astoria New York.

GETTY IMAGES,AND SEAN SMITH, SIMON LUETHI ED LEFKOWICZ, DON POLLARD SEE MORE OF THIS WEEK’S SNAPS ONLINE AT CRAINSNEWYORK.COM/SNAPS GET YOUR GALA IN SNAPS. EMAIL THERESA AGOVINO, [email protected]

JUNE 20, 2016 | CRAIN’S NEW YORK BUSINESS | 29 20160620-NEWS--0030-NAT-CCI-CN_-- 6/17/2016 6:25 PM Page 1

FOR THE RECORD*

the summer in Red Hook. worldwide, including West floor of the 33-story build- completed in 2017. The ten- sented by RKF. The land- NEW IN TOWN Popular food trucks like Hollywood’s Mondrian Los ing it has occupied since ant did not have a broker. lord, Rudin Management Country Boys and Angeles. SBE currently 2013. The tenant was repre- The landlord, BFC Partners, Company, was represented Brooklyn’s Cat Café Ecuadorian serve Latin operates 80 restaurants and sented by Newmark Knight was represented by in-house. The asking rent 149 Atlantic Ave., Brooklyn American fare, including clubs. Sam Nazarian, Grubb Frank. The landlord, Casandra Properties and in the deal was $200 per Brooklyn Heights’ first cat pupusas and arepas. founder and CEO of SBE, RXR Realty, was represent- EWB Realty. Average ask- square foot. café allows visitors to play will retain day-to-day ed in-house. Asking rents ing rent at the complex is with cats that are up for Steven Alan Optical operations. range from the high $40s $125 per square foot. Daniel Wellington signed adoption, while enjoying 13 Eighth Ave. per square foot to the low a lease for 500 square feet at coffee and snacks. There is The eyewear brand’s $60s per square foot. Glaze Teriyaki and 444 Broome St. in SoHo. a $5 admission fee for every newest location, in the BANKRUPTCIES Untamed Sandwiches The watch brand will occu- half-hour. West Village, sells women’s RETAIL signed 10-year leases for py a ground-floor retail and men’s eyeglasses and Aéropostale, Inc. Nike signed a 10-year 1,977 square feet and 1,493 space between Broadway LaserAway sunglasses and offers virtu- 112 W. 34th St. lease for 17,000 square feet square feet, respectively, at and Mercer Street. The ten- 35 E. 19th St. al-try-on via its website The fashion retailer filed for at 55 Richmond Terrace in 136 E. 55th St. Both eater- ant was represented by The aesthetics and derma- Chapter 11 bankruptcy on Staten Island. The sports ies will open outposts on Compass’ David Graff. The tology clinic opened in the The Beach at Dream May 4. The filing cites esti- apparel giant will occupy a the ground floor of the landlord, Sherr Equities, Flatiron district. Laser hair Downtown mated liabilities and assets ground-floor space after building between Third and was represented in-house. and tattoo removal treat- 355 W. 16th St. of $100,000,001 to $500 construction on the com- Lexington avenues. Glaze The asking rent in the deal ments and skin contouring The Dream Hotel’s poolside million. The creditors with plex, Empire Outlets, is and Untamed were repre- was $600 per square foot. services are offered. bar and grill reopened for the largest unsecured the summer in Chelsea with claims are LF Sourcing The Lot Radio new food and cocktail Millwork, owed DEALS ROUNDUP 17 Nassau Ave., Brooklyn options. A day pass for $14,287,208; Hansae Co. A formerly empty lot in entry costs $60 and is avail- Ltd., owed $1,287,408; and TARGET/SELLERS TRANSACTION BUYERS/INVESTORS TRANSACTION TYPE Greenpoint is now home to able for purchase on site. LI & Fung SEA-A, owed SIZE [IN MILLIONS] a 24-hour independent $1,110,049. Two stores, in American Capital/ $3,888.5 Ares Capital Management FB M&A online radio station that is Brooklyn’s Fulton Mall and Elliott Management (Manhattan) supported by sales from a MERGERS & Times Square, will close. Corporation (Manhattan); HBK Investments; Lakewood Capital coffee kiosk on the site. The ACQUISITIONS Management (Manhattan); kiosk sells locally sourced Kiki Holdings Orange Capital (Manhattan); coffee, donuts and pastries. Upserve, a Rhode Island- 349 Fifth Ave. Paulson & Co. Inc. (Manhattan); Pine River Capital Management based restaurant software The luxury lingerie compa- startup, has acquired ny filed for Chapter 7 bank- ILC Industries/ $1,000.0 TransDigm Inc. SBM&A COMPANY MOVES Breadcrumbs, a point-of- ruptcy on May 6. Its only Behrman Capital (Manhattan) sale business, from retail store, Kiki de Xura Inc. / $806.6 Siris Capital Group FB M&A Butcher’s Daughter Groupon. In a release Montparnasse, was located Cove Street Capital; (Manhattan) 581 Hudson St. Fidelity Management & Research announcing the transaction, in TriBeCa. The filing cites Company; Obsidian Management A second location of the the startup said Groupon will estimated liabilities of (Manhattan); Wellington Kenmare Street vegan café receive a minority stake in $10,000,001 to $50 million Management Group opened in the West Village. the company. Breadcrumbs’ and assets of $500,001 to $1 Xenoport Inc./ $578.4 Arbor Pharmaceuticals SB M&A Like the Brooklyn outpost, employees will join million. The creditors with Armistice Capital (Manhattan); it serves brunch, lunch and Upserve’s team in San the largest unsecured Clinton Group (Manhattan); OrbiMed Advisors (Manhattan); dinner. Two additions to Francisco, Chicago, claims are Miles Rubin, Skyline Ventures; T. Rowe the Manhattan menu are Providence, R.I., and owed $5,527,616.44; Jon Price Associates Inc.; Venrock (Manhattan) cold-pressed cocktails and New York. Rubin, owed wood-oven pizzas. $2,200,052.80; and Andrew Colorado Center in Santa $511.1 Boston Properties Inc. (49.80%) SB M&A IMS Health Holdings, a Rosen, owed $276,380.82. Monica, Calif./The Blackstone Group (Manhattan) Covina health care information and 127 E. 27th St. technology provider, Catalyst Paper Corp./ $432.1 The Kejriwal Group SB M&A The Californian- agreed to an all-stock REAL ESTATE DEALS Cyrus Capital Partners (Manhattan); Mudrick Capital Mediterranean restaurant’s merger with Quintiles Management (Manhattan); new breakfast and lunch Transnational Holdings, a COMMERCIAL Oaktree Capital Management; café in Kips Bay serves a biopharmaceutical devel- D.E. Shaw & Co. signed a Stonehill Capital Management (Manhattan) daily rotating list of pas- opment provider. The new seven-and-a-half-year tries. company will be called lease renewal for 195,000 Macquarie Office Tower $378.9 Charter Hall Group; Morgan SB M&A 1166 Sixth at One Shelley Street, Darling Stanley Real Estate Investing Quintiles IMS Holdings and square feet at Harbour, Sydney/Brookfield (Manhattan) Don Muang Airport maintain headquarters in Ave. The hedge fund spon- Canada Office Properties 146 Broadway, Brooklyn Connecticut and North sor will continue to occupy Blue Bird Corp./ $358.4 American Securities FB M&A The popular Williamsburg Carolina. IMS Health the fifth through ninth The Traxis Group (Manhattan) (33.34%) bar and music venue Baby’s Chairman and Chief floors of the 44-story tower All Right opened a full- Executive Ari Bousbib will between West 45th and Resource America Inc./ $250.5 C-III Capital Partners SB M&A Arete Foundation, Endowment Arm; service Thai restaurant on maintain his role at the West 46th streets. The ten- Omega Advisors Inc. (Manhattan); its premises. combined company, while ant was represented by Omega Associates; Raging Capital Quintiles Chief Executive CBRE. The landlord, Management People’s Pops Tom Pike will serve as vice Edward J. Minskoff Selected deals announced for the week ended May 26 involving companies in metro New York. SB M&A: 808b Union St., Brooklyn chairman. Based on market Equities, was represented Strategic buyer M&A represents a minority or majority acquisition of existing shares of a company without the participation of a financial buyer. FB M&A: Financial buyer M&A represents a minority or majority A new location of the vegan capitalization, the merger by JLL. Asking rents in the acquisition of existing shares of a company with the participation of a financial buyer. ice-treat shop opened in would create a combined building range from the SOURCE: CAPITALIQ Park Slope. Ice pops and worth of $17.6 billion. high $70s to the mid-$80s shaved ices are available in per square foot, according seasonal flavors like frozen SBE, a hotel and night- to press reports. hot chocolate with coconut club group, has agreed to City & State Media signed GET YOUR NEWS ON THE RECORD milk and coconut cream. acquire boutique hotel a lease for 3,836 square feet *To submit company openings, moves or real estate deals, or to receive further information, company Morgans Hotel at 61 Broadway, expanding email [email protected]. Red Hook Food Vendors Group in a deal worth $794 its square footage in the For the Record is a weekly listing to help businesspeople in New York find opportunities, Red Hook Recreational million. Once the deal clos- building to 6,836. The poli- potential new clients and updates on customers. Bankruptcy filings from the Eastern and Park, Brooklyn es in the third or fourth tics and government pub- Southern districts of New York are listed alphabetically. Real estate listings are provided in The annual Latin American quarter of the year, SBE will lisher will move down to order of square footage. food truck fair opened for own 20 hotel properties the 13th floor from the 22nd

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PHOTO FINISH

Under their wing

nside JetBlue’s Terminal 5 hangar at John F. Kennedy International Airport, Emir Hukic helped slide an actuator into place on the right landing gear of an Airbus IA320. The Astoria, Queens, teenager wasn’t just practicing—he was working side by side with the airline’s technicians to put the plane back into service for JetBlue’s Northeast fleet. Hukic, just finishing his last year of Aviation High School’s five-year program, was one of three technical operations interns this semester. The internship program began in 1986. JetBlue partnered with the school during its first year in business, in 1998. Now 12% of airline technicians nationwide are graduates of Aviation High, which also operates an annex at JFK where students learn on donated engines and aircraft. The average age of new hires in JetBlue’s hangars is 23, said Archie Vega, vice president of technical operations for JetBlue. But at 19, Hukic was just weeks away from completing the two years of supervised onsite labor required for the FAA mechanic’s certificate he’ll need to land a job. Hukic’s next step is applying for JetBlue’s apprenticeship program. If accepted, he’ll earn $23 an hour right out of high school. “They train you how to work on these awesome beasts,” Hukic said. “They basically take you under their wing for a year.” — PETER D’AMATO PETER D’AMATO

JUNE 20, 2016 | CRAIN’S NEW YORK BUSINESS | 31 OFFICE CONDOMINIUMS FOR SALE AT 633 THIRD AVENUE UNITS AVAILABLE FROM 4,538 SF NEAR GRAND CENTRAL STATION

Time Equities, Inc. is pleased to offer the 9th floor for sale as a commercial condominium in one of Manhattan’s premier Office Condominium buildings. The offering is a total of 32,513 RSF divisible to 4,500 RSF increments. Each unit offers an extremely efficient footprint conveniently located next to Grand Central.

EAST 41ST STREET

Unit B Unit C Unit D 10,734 RSF 5,551 RSF 5,895 RSF

TEL.CL. WC #1

STAIR #3 STAIR #2 DUCT SHAFT

FIRE STAIR #4 STAIR #1 TOWER DUCT WOMEN SHAFT

MEN ELEVATOR LOBBY

PIPE SHAFT

DUCT SHAFT ELEC. CL. FREIGHT LOBBY THIRD AVENUE

Under Unit E Sold Contract 5,168 RSF

EAST 40TH STREET

9TH FLOOR Call or email for more information:

Brandon Medeiros (212) 206-6161 www.teiofficecondos.com [email protected]

Nadja Galloway (212) 206-6017 [email protected]