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HOW TO MAKE $$$ IN NYC TECH As the city’s most vibrant sector matures, ways to get in on the growth multiply. Just ask DataGryd’s NEW YORK BIZ Peter Feldman Page 17 FEELS TRUMP’S TRAVEL BAN P. 7 AND P. 9 BANKING ON BROADWAY CITY WANTS BIGGER SLICE OF AIR-RIGHTS PIE P. 19 OUT-OF- STATE CARS DRIVE THIS NEW YORKER CRAZY P. 20

VOL. XXXIII, NO. 6 WWW.CRAINSNEWYORK.COM

NEWSPAPER

P001_CN_20170206.indd 1 2/3/17 7:19 PM Dr. Richard Merkin and

PRESENT THE Heritage Healthcare Innovation Awards 2017 NOMINATIONS NOW OPEN Who will make up the class of 2017? We are looking for exceptional leaders, pioneers and trailblazers in New York healthcare for the 2017 Heritage Healthcare Innovation Awards. These prestigious awards will recognize the best of today’s healthcare clinicians, administrators and researchers who are making measurable improvements in health status, improving access to healthcare, positively impacting patient quality of care and demonstrating long term aﬀ ordability. Nominations close March 31st and finalists will be honored at a luncheon in NYC on May 22nd Mark Wagar, President, Heritage Medical Systems, Master of Ceremonies

Finalists will be awarded in the following categories: ■ Heritage Innovation in Healthcare Delivery Award ■ Heritage Research Investigators in Translational Medicine Award ■ Heritage Healthcare Leadership Award ■ Heritage Healthcare Organizational Leadership Award ■ Heritage Innovators in Healthcare Award

For more information, visit crainsnewyork.com/heritage

The judging and selection process for ﬁ nalists and winners in the 2017 Heritage Healthcare Innovation Awards is independent of the Crain’s New York Business newsroom

Crain'sCN018148.indd Heritage 2017 1 Full Page MECH.indd 1 1/18/171/19/17 11:1212:19 AMPM FEBRUARY 6 - 12, 2017 CRAINSNEW YORK BUSINESS

FROM THE NEWSROOM | JEREMY SMERD IN THIS ISSUE

It’s Queens’ turn 4 AGENDA 5 IN CASE YOU MISSED IT MANHATTAN HAS THE HIGH LINE. Brooklyn has Brooklyn 6 INSTANT EXPERT Bridge Park. Now it is Queens’ turn to transform a vestige of Uninsured and 7 HOSPITALITY minority patients its past into an amenity for its future. “strikingly under 8 ASKED & ANSWERED represented” at A group of New Yorkers is advocating for the creation of city hospitals the QueensWay, a 3.5-mile foot and bike path that would 9 HEALTH CARE transform the derelict former Rockaway Beach branch 10 WHO OWNS THE BLOCK of the Long Island Rail Road into a linear park running 11 REAL ESTATE through southern Queens. The QueensWay would connect 13 VIEWPOINTS neighborhoods and businesses to each other and to public transit while reducing dependency on cars. It would give 15 THE LIST pedestrians an alternative to crossing the borough’s dan- I’ve never seen FEATURES gerous boulevards. 17 MAKING MONEY IN TECH Advocacy group Friends of the QueensWay has any buyer’s “ 19 PLAY RIGHTS received support from the Trust for Public Land to make remorse when 20 CAR WARS the project happen. The two groups visited Crain’s last it comes to week to make their case. “Local residents say it’s time for buying parks the city to invest in this community,” said Karen Imas, a P. QueensWay activist who lives in Forest Hills. 24 ZAMEER The $150 million needed to build the park is hardly chump change. But neither KASSAM is it exorbitant by park-development standards. About $160 million in public funds have been invested in the High Line. And the city has pledged the same amount to buy a parcel to complete Bushwick Inlet Park in Williamsburg. Both are much smaller than the QueensWay’s 47 acres would be. One downside of the project is that it would preclude the option of reclaiming the 24 GOTHAM GIGS railway for mass transit. The Regional Plan Association has proposed using the right- 25 SNAPS of-way for a one-seat ride to JFK Airport. But that’s one of five potential options the 26 FOR THE RECORD group has identified for that purpose, and it’s neither the cheapest nor the easiest. I don’t think some remote transit possibility justifies doing nothing today when 27 PHOTO FINISH it’s clear the QueensWay would immediately benefit six large neighborhoods. All CORRECTIONS the city has to do is assign the acreage to the Parks Department. But the de Blasio Gail Miller Bisher was a producer of the “Two administration has yet to endorse the plan or put money behind it. for me; none for you” Twix candy ad. “The dog whisperer,” published Jan. 30, misstated that - The mayor’s focus has been on housing, not parks. But the two are mutually ben she wrote the tagline. eficial, said Adrian Benepe, a senior vice president at the Trust for Public Land and The Risk! podcast gets an average of 2 million a former city parks commissioner. downloads per month. This figure was misstated A first phase that passes by some big-box stores is already being planned. If the in “Talk is not so cheap,” published Jan. 23. community is serious about its park, it could work on a redevelopment plan that includes retail and apartments. Revenue from the new development’s property taxes could fund the greenway. “I’ve never seen any buyer’s remorse when it comes to buying parks,” Benepe said.

CONFERENCE CALLOUT MARCH 1 ON THE COVER MEET CITY HALL’S PHOTO: BUCK ENNIS HOMELESSNESS CZAR Steven Banks, commissioner of the city’s Human Resources DIGITAL DISPATCHES Administration, will discuss the mayor’s plan to address the Go to CrainsNewYork.com rise in homelessness as well as ■ Nordstrom to stop his efforts to change the city’s selling Ivanka Trump > approach to welfare programs. clothing and accessories.

THE NEW YORK ■ ATHLETIC CLUB Star architect Bjarke Ingels is looking to move his 8 to 9:30 a.m. firm from Manhattan to a [email protected]. 52,000-square-foot space in Dumbo. Vol. XXXIII, No. 6, February 6, 2017—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double ■ issues the weeks of June 26, July 10, July 24, Aug. 7, Aug. 21 and Dec. 18, by Crain Communications Inc., 685 Third Ave., Op-ed: The looming L train shutdown is New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send address the next, best chance to find solutions for changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Ave., Detroit, MI 48207-2912. congested city streets. For subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2017 by Crain Communications Inc. All rights reserved. ■ Extell Development looks to spur sales at three of its condo projects by offering to pay some broker’s fees up front. GETTY IMAGES, BUCK ENNIS, BLOOMBERG

February 6, 2017 | CRAIN’S NEW YORK BUSINESS | 3

P003_CN_20170206.indd 3 2/3/17 7:19 PM WHAT’S NEW February 6, 2017

AGENDAMake New York City projects safe, not exclusively for unions

nionized construction workers want their industry to be safe, but it would be naive to think that’s why thousands of them flocked to City Hall last week as a hearing began on 21 jobsite-safety bills. In fact, the building trades tell the Uworld incessantly that their members work safely while their nonunion counterparts are at grave risk of severe injury and death. No, that impressive show of force last week was about market share. Nonunion contractors have increasingly been doing work, such as building towers, that was once the exclusive domain of union employers—and the unions are in a perpetual quest to stem the tide. For example, they have been pushing to move into the traditionally nonunion realm of SHOW OF FORCE: Construction unions at City Hall last week called for mandatory apprenticeships, claiming concern for nonunion workers’ safety. affordable-housing construction, arguing that taxpayer-subsidized projects should pay prevailing wages because it is good for society. The City Council’s task here is to protect workers, not steer jobs to should. Apprenticeships and OSHA courses won’t change that dynamic. unions. It must weed out elements of the legislation that are not primarily What will? Unions tout job protection as crucial, because if workers safety-related—notably one that would require aspiring laborers to com- cannot be fired without cause, they have the freedom to insist on safety. plete an apprenticeship, which in some cases would funnel them into the The flip side is that a worker too secure in his job lacks incentive. union that offers the needed apprenticeship. Another bill would require more projects Such programs include safety training, Construction workers usually don’t to have site-safety managers, who have no but that is not their main purpose. The fed- productivity goals to meet. But the number eral Occupational Safety and Health Admin- need to have taken a safety course of qualified site-safety personnel in the city istration, however, does offer 10-hour and to recognize when they’re in danger is insufficient to meet the current demand, 30-hour courses devoted to risk reduction. let alone an expanded one. If the council were to require a safety course, These are just a few of the factors for OSHA’s would seem more appropriate. But let’s be honest: Construction council members to consider. Our concern is that unions’ shows of force, workers usually don’t need a course to know when they’re in danger. They like last week’s rally, and their campaign arms’ ability to influence incum- can tell when a contractor takes shortcuts, such as not installing netting, bents’ re-election chances, provide an impetus for council members to do or demands a job be completed faster than it can be done safely—which the wrong thing, just as the lure of saving money can lead a contractor to can lead to workers neglecting to use safety harnesses every time they cut corners on safety. It’s an accident waiting to happen. — THE EDITORS

FINE PRINT Postproduction for film and TV in New York gives more to state coffers than it gets. According to the Post New York Alliance, postproduction work generates $128 million per year in state tax revenue and is responsible for 23,310 jobs, while receiving $25 million of the $420 million annual film and TV tax credit. Opponents of the tax break say the entertainment industry could thrive without it.

BY GERALD SCHIFMAN 25 WORDS OR LESS STATS WI-FI NETWORK SIGNAL IS STRONG

“That’s LINKNYC, which replaced the city’s pay phones with Wi-Fi kiosks, is growing its niche in New York. AND THE CITY Sessions on LinkNYC Wi-Fi kiosks false. False 81M since their launch last February statement. Sessions during the week of Jan. 9, False. Liar. 3.9M up 51.4% from the week of Sept. 26 Liar! Full-time employees working directly —Gerald Miceli, president of L&M on LinkNYC Development Partners, responding to 350 accusations from union officials at a Economic output generated City Council hearing that a nonunion by LinkNYC last year, a 74% worker died at an L&M construction $128.9M increase from 2015 site because it was unsafe

GETTY IMAGES, BUCK ENNIS ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY. SOURCES: NYC OpenData, CityBridge

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

P004_CN_20170206.indd 4 2/3/17 7:19 PM AGENDA ICYMI CRAINSNEW YORK BUSINESS EDITOR IN CHIEF Rance Crain publisher, vp Jill R. Kaplan executive assistant Devin Arroyo, 212.210.0701 EDITORIAL editor Jeremy Smerd CEO exits reflect managing editor Brendan O’Connor assistant managing editors Erik Engquist, Jeanhee Kim, Robin D. Schatz retail’s challenges web editor Amanda Fung copy desk chief Telisha Bryan ACY’S HAS given up waiting for a art director Carolyn McClain photographer Buck Ennis miracle on 34th Street. And Bar- senior reporters Joe Anuta, Aaron Elstein, Matthew Flamm, Daniel Geiger neys and Ralph Lauren may be reporters Rosa Goldensohn, M Jonathan LaMantia, Caroline Lewis, looking for one. Addie Morfoot The three iconic New York retail brands data reporter Gerald Schifman web producer Peter D’Amato, face leadership changes as they deal with columnist Greg David contributing editors Tom Acitelli, shifts in tastes and shopping habits that are Theresa Agovino, Erik Ipsen, Cara S. Trager wreaking havoc across the industry, leaving ADVERTISING THREE AND OUT: Terry Lundgren, Mark Lee and Stefan Larsson are all leaving many New York storefronts empty. Macy’s, www.crainsnewyork.com/advertise their companies as retailers struggle to compete. advertising director Irene Bar-Am which plans to close 100 outlets this year in [email protected] or 212.210.0133 the face of competition from e-commerce and senior account managers Zita Doktor, Rob Pierce, Stuart Smilowitz, fast-fashion chains, is in sale talks with Hudson’s Bay. The discussions could lead to Macy’s selling itself or some Debora Stein sales coordinator Devin Arroyo of its real estate to the Canadian retailer, according to The Wall Street Journal. The negotiations come as longtime 212-210-0701, [email protected] CEO Terry Lundgren plans to step down. Last week also brought turnover at the top for Ralph Lauren and Barneys. ONLINE general manager “You have boards that are frustrated that changes aren’t happening fast enough,” said Greg Portell, lead partner Rosemary Maggiore 212.210.0237 [email protected] in the retail practice of consulting firm A.T. Kearney. “You’re probably going to see more of this type of action CUSTOM CONTENT before you see less.” director of custom content Patty Oppenheimer 212.210.0711 Stefan Larsson, Ralph Lauren chief executive, was ousted just 15 months after he was chosen to lead a turn- [email protected] around at the aging fashion brand. With Mark Lee retiring at Barneys, Daniella Vitale had been in line to succeed multicultural sales manager Giovanni Perla [email protected] him as CEO. But the luxury retail chain has also been struggling, according to Matt Sargent, senior vice president senior custom marketing manager Sonia David, [email protected] of retail at Frank N. Magid Associates. EVENTS Sargent sees established brands and mega retailers as being under siege by the likes of Amazon and upstart www.crainsnewyork.com/events director of conferences & events brick-and-mortar boutiques such as Lululemon Athletica. “Look at what a long run these guys had,” he said, in- Courtney Williams, 212.210.0257 [email protected] cluding Kohl’s, J.Crew and Sears among the retailers in trouble. “They were relatively unchallenged for years. That manager of conferences & events clearly has come to an end.” — MATTHEW FLAMM Adrienne Yee, [email protected] events coordinator Ashlee Schuppius, [email protected] AUDIENCE DEVELOPMENT director of audience & content AG sues over slow internet DATA POINT companies, is being acquired by Med- partnership development Michael O’Connor, Attorney General Eric Schneiderman Men, a California management and in- 212.210.0738 UNION MEMBERSHIP HAS DECLINED [email protected] sued Charter Communications for al- vesting firm that has vowed to turn the CRAIN’S 5BOROS legedly failing to deliver on a promise LESS IN NYC THAN IN THE REST OF Long Island City company around and www.5boros.com Irene Bar-Am, 212.210.0133 by its subsidiary, Spectrum, to provide THE U.S. SINCE ’06, FROM 24.4% TO move it upstate to Utica. [email protected] faster internet service to millions of REPRINTS customers. Schneiderman said some 23.6% OF CITY WORKERS. UNIONS New theater’s debut reprint account executive Krista Bora speeds were 79% slower than pledged. The Hudson Theatre, Broadway’s 41st 212.210.0750 ARE 10.7% OF THE U.S. WORKFORCE, venue, opens this week on West 44th PRODUCTION DOWN 1.3 PERCENTAGE POINTS. production and pre-press director City to Uber: Give us your data Street. The 975-seat space is the first Simone Pryce The Taxi & Limousine Commission new theater along the Great White media services manager Nicole Spell ordered Uber and other car services Way since 1998 and might be the last SUBSCRIPTION CUSTOMER SERVICE Cops collar contract www.crainsnewyork.com/subscribe to hand over customers’ pickup and for a while. Rising real estate costs have [email protected] drop-off times and locations as part of City Hall reached a five-year, $1.9 bil- made redeveloping a space—much 877-824-9379 (in the U.S. and Canada). the agency’s crackdown on drivers who lion contract with the Patrolmen’s Be- less building from the ground up— $3.00 a copy for the print edition; or $99.95 one year, $179.95 two years, for print work longer than 10 hours straight. nevolent Association that is retroactive extremely difficult. subscriptions with digital access. to 2012 and represents an 11.73% pay to contact the newsroom: Trump sinks bank shot raise. The deal includes a requirement www.crainsnewyork.com/staff 685 Third Ave., New York, NY 10017-4024 President Donald Trump issued an that patrol officers wear body cameras. phone: 212-210-0100 fax: 212-210-0799 executive order intended to roll back Entire contents ©copyright 2017 Dodd-Frank rules passed to rein in Pol seeks food truck letter grades Crain Communications Inc. All rights reserved. ©CityBusiness is a registered banks in the wake of the financial crisis. Queens Councilwoman Karen Koslow- trademark of MCP Inc., used under license The order also suspended regulations itz introduced legislation requiring let- agreement. that would have forced financial advis- ter grades, which the city has given to CRAIN COMMUNICATIONS INC. ers to put clients’ interests first. restaurants since 2010, on food trucks BOARD OF DIRECTORS chairman Keith E. Crain and carts. A street-vendor spokesman president Rance Crain Cosmos make Kings County landing said cart owners would welcome letter treasurers Mary Kay Crain, Cindi Crain The New York Cosmos soccer team grades if fewer fines were issued. senior executive vp, William Morrow executive vp, director of strategic is moving from Long Island to MCU operations Chris Crain Park, home of minor league baseball’s Barclays wants to ice Islanders executive vp, director of corporate operations K.C. Crain Brooklyn Cyclones, when the soccer Barclays Center doesn’t plan to host the Brooklyn feels the Bern senior vp, group publisher David Klein team’s fifth season opens April 1. NHL’s Islanders after the 2018–19 sea- Sen. Bernie Sanders of Vermont vp/production, manufacturing David Kamis son, likely ending a relationship that did will give the Brooklyn College com- chief financial officer Bob Recchia chief information officer Anthony DiPonio Spitzer hooks up with The Related Cos. not generate enough revenue for the mencement address this spring. founder G.D. Crain Jr. [1885-1973] Former Gov. Eliot Spitzer, who took arena and that Long Island fans detest. Sanders grew up in Midwood, just chairman Mrs. G.D. Crain Jr. [1911-1996] over his family’s real estate business, will a few blocks from the school. The secretary Merrilee Crain [1942-2012] buy two sites with The Related Cos., to- Cannabis company moving upstate graduation ceremony is slated for taling 1.4 million square feet of offices Bloomfield Industries, one of New May 31 at Barclays Center.

and apartments in Hudson Yards. York’s five licensed medical-marijuana BLOOMBERG, AP IMAGES

February 6, 2017 | CRAIN’S NEW YORK BUSINESS | 5

P005_CN_20170206.indd 5 2/3/17 7:20 PM AGENDA INSTANT EXPERT TAXES BY ROSA GOLDENSOHN

Is the ‘millionaires tax’ here to stay? [in 5 steps]

THE PLAYERS THE ISSUE Cuomo, Assembly Democrats, left-lean- ing advocacy organizations and other Individuals with a tax- supporters of the tax say it fills a $4 able New York income of 2 billion budget hole and note that studies more than $1,077,550 1 show it does not affect high earners’ de- a year or joint filers earning cision to live in New York. “In order for the above $2,155,350 a year state finances to hold together, the state re- are subject to the state’s ally needs the millionaires tax,” said James “millionaires tax.” Roughly Parrott, chief economist at the liberal Fiscal 45,000 taxpayers are in Policy Institute. But the Partnership for New that 8.82% state income York City, an organization of large businesses in the city, and think tanks tax bracket, according to the such as the Manhattan Institute say the tax does indeed repel high earn- state Division of the Budget. ers from the state. “Albany needs to understand the potential negative Approximately half of them impact of a tax rate that is higher than almost any of our domestic and live outside New York state, and about a quarter live in New global competitors when it comes to attracting talent and jobs,” Kathryn York City. Unless the state extends the tax, it will expire Dec. 31. Gov. Wylde, partnership president and CEO, said in a statement after Cuomo Andrew Cuomo last month proposed continuing it through 2020. called for the extension. Senate Republicans, who control the upper It’s controversial because it was initially billed as temporary, and chamber jointly with the Independent Democratic Conference, oppose only six states and Washington, D.C., have a higher top tax rate. the tax, while IDC leader Jeff Klein (above), a Bronx senator, supports it and predicts the GOP conference will ultimately agree to extend it.

YEAH, BUT... Before the tax was created in 2009, joint filers earning WHAT’S NEXT Middle-class above a mere $40,000 fell into the state’s highest tax bracket—paying 6.85%. The millionaires tax replaced The Legislature can do noth- tax cuts were 3 an essentially flat tax with a graduated one. As a result, a ing and let the millionaires decoupled from 2015 analysis by the Institute on Taxation and Economic tax die without losing the 5 Policy found, New York’s top 1% of earners pay 8.1% of their middle-class tax cuts it was once the millionaires income in state and local taxes, including property and sales paired with. But the political im- tax, removing a taxes. Nationwide only California’s top earners hand over a petus for including it in the next key incentive larger portion. But New York’s richest still pay a lower share of state budget is strong: Lawmakers their income to the government than the state’s bottom 20% of would rather not raise taxes and fees for Senate earners do. While the poorest fifth don’t make enough to pay or slash billions in spending to close Republicans state income taxes, they still shell out 10.4% of their family the deficit that would be created income on property, sales and excise taxes. The middle 20% if the tax ends. The impact of its to extend it of earners lose 12% expiration on the budget three- of their income to quarters of the way through the taxes. Parrott said next fiscal year would be a loss without a high-rate of $683 million, Cuomo’s budget income tax bracket, office estimates, and would things would be balloon to $3.4 billion in fiscal even more unfair. 2019 and $4 billion two years later. Another factor in the tax’s favor is that few constituents of Senate Republicans—who mostly represent working-class upstate SOME BACKSTORY districts—have to pay it. Polls The millionaires tax traces its roots back to a three-year income tax surcharge put in place show across-the-board support after Wall Street’s collapse in 2008. Former Gov. David Paterson got the state Legislature to for a higher rate on top earners. approve two new brackets at the high end of the income spectrum: 8.97% for million-dollar A vote on the fiscal 2018 budget 4 earners and 7.85% for those making $300,000 or more. In late 2011, days before the two top rates is expected in late March. were to expire and fall back to 6.85%, Cuomo and the Legislature extended them but lowered the top rate to 8.82% and the second rate slightly, as well. They simultaneously implemented a package of middle-class tax cuts. The moves allowed the governor to proclaim that every New York taxpayer would pay a lower rate than before he took office. Last year the state passed a new round of middle-class tax cuts that will phase in through 2025. This decoupled the middle-class tax cuts from the millionaires tax, removing a key reason for legislators who oppose the higher rate to extend it. BLOOMBERG, AP IMAGES, ISTOCK

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

P006_CN_20170206.indd 6 2/3/2017 10:18:40 AM AGENDA HOSPITALITY

TOURIST TRAP: The ban could make New York Businesses struggle a less appealing travel destination. with Trump’s travel ban Order barring refugees and Muslims seen as hurting tourism more broadly BY ROSA GOLDENSOHN

resident Donald Trump’s when the ban took effect last week was: travel ban threatens city tour- “We are focused on hotel-tax issues ism, industry experts say. But and the continuing fight against ille- local trade groups are try- gal hotels.” Ping to walk the line between defend- Dandapani later released a state- ing their interests and offending the ment saying the group supports “an famously combative president. open, transparent and welcoming visa Trump barred immigrants from policy for visitors of all backgrounds to seven Muslim-majority countries and the United States.” refugees from all countries from enter- While “responsible security is par- ing the United States for 90 and 120 amount,” the chairman said, “we must days, respectively, and Syrian refugees hold true to the principles of hospitality NYC & Co., the city’s official tour- function as a global hub that welcomes indefinitely. and opportunity that make New York ism arm, also criticized the ban. A people for work, study, travel and busi- Many in the immigrant-heavy City and America beacons to the world.” spokesman said it “doesn’t help us to ness from every country on earth.” restaurant industry are “deeply con- Experts say the tourism industry communicate a welcoming message” to Potential visitors in other countries cerned for themselves and their family and the city economy as a whole will international travelers. “People look at will say, “Ugh, I don’t want to go to that members,” said Andrew Rigie, NYC suffer as a result of the ban. this and they may make a travel deci- place,” said Lawrence White, professor Hospitality Alliance executive direc- “Foreign tourism here owes much sion based on this policy, and it could of economics at New York University’s tor, and they have been trying to “push to upbeat, positive perceptions of the deter them,” the spokesman said. Stern School of Business. “Tourism is back.” But the trade group itself is stay- U.S.,” said Craig Jenks of Airline/Air- an exporting industry,” he noted. “It ing out of the fray. craft Projects Inc., a New York–based Countermessaging brings revenue into the country.” “Our mission focuses on city and industry consultancy. “Travel data sug- NYC & Co. previously erected Business leaders rarely criticize state regulatory matters; we will refer gests these perceptions are undermined “All are Welcome” posters in the elected officials, for fear it will come our members to organizations that spe- by seemingly arbitrary government baggage-claim areas at John F. Ken- back to damage their bottom line. But cialize in immigration matters if they actions against foreigners.” nedy and LaGuardia airports and plans more than 400 tech executives and inquire,” Rigie said. Some critics didn’t hold back. to launch similar advertising soon in 1,600 tech workers have signed on to The Hotel Association of New York Chef and restaurateur Tom Colicchio international markets via social media. a Tech:NYC letter opposing Trump’s City took a similar tack, even though blamed Trump when his restaurant But such countermessaging could be order. Many tech companies have been the trade group’s chairman, Vijay Dan- Craft lost a private dining reservation. overwhelmed by the widespread pub- started by immigrants, and the firms dapani, had said days after Trump’s “Thanks @POTUS We just had our first licity given to Trump’s directives. The rely heavily on talent from overseas. election that the tourism industry PDR cancel because the host’s guests tourism agency said in a statement, Meanwhile, 1,000 Yemeni bodega would take its objections to “his door- can’t get into the country as a result of “The executive order limiting travel owners in the city closed their doors step” if the president implemented his the travel ban,” tweeted Colicchio, who to the United States is not compatible in protest Thursday afternoon before a promised Muslim ban. is planning to close Craftbar, a separate with New York City values, and it’s rally at Brooklyn Borough Hall, orga- But the group’s initial statement venue, in April (see story, below). not compatible with New York City’s nizers said. ■

Colicchio to close Craftbar, citing high rent Chef hopes to reopen the restaurant elsewhere BY CARA EISENPRESS

TOM COLICCHIO is preparing which opened in October in to close Craftbar, his 15-year- the redone Beekman Hotel. old restaurant, on April 30. ’Wichcraft, his sandwich The lease was up, and the chain, operates in nine loca- new rent was simply too high tions around the city. to renew, he said. Colicchio said he hopes “Our rents are going up to resurrect Craftbar. “We’re approximately 50%, and we going to look around for a can’t make a go of it,” Col- location,” he said. “We need icchio said. “Revenues will a lower-priced restaurant in never cover it.” our portfolio.” In the mean- Craftbar, which opened time, he plans to absorb most in 2002 as a casual offshoot of the 70-person staff at other next door to Colicchio’s Craft locations. on East 19th Street, moved in The chef, who is involved 2005 to a 175-seat location at in politics and food activism 900 Broadway. through Food Policy Action, Although he closed a social welfare organiza- another spot, West Chel- tion dedicated to promoting sea’s Colicchio & Sons, in September, a sustainable food system, said he lost the chef and owner continues to operate business at Craft last week because of the three sit-down restaurants in Manhat- Trump administration’s newly imposed

BUCK ENNIS, EPA/PETER FOLEY BUCK ENNIS, EPA/PETER tan: Craft, Riverpark and Fowler & Wells, travel ban. ■

February 6, 2017 | CRAIN’S NEW YORK BUSINESS | 7

P007_CN_20170206.indd 7 2/3/17 7:20 PM AGENDA ASKED & ANSWERED SPORTS INTERVIEW BY AARON ELSTEIN

NORBERT SANDER THE ARMORY FOUNDATION

orbert Sander is founder and chief executive of the foundation that runs the track-and- eld center at the Armory in Washington Heights. The center is home to indoor track’s premier event, the Millrose Games, Nwhich will take place Feb. 11 and date back to a 1908 race among employees of Wanamaker’s department store in Manhattan. Sander is a practicing physician and the only native New Yorker to We’re about win the New York City Marathon—which he did in 1974. “more than running around in The Millrose Games used to be held at Madison Square Garden. circles Why move it? The track at the Garden was only 160 meters around and four lanes wide, so it was pretty slow. Top athletes didn’t want to run on it. But the bigger problem is that the audience for indoor-track events has shrunk quite a bit. The Millrose Games weren’t selling more than 5,000 tickets at the Garden at the end. By moving to a smaller facility where 5,000 is capacity and the crowd is really close to the action, we really improved the atmosphere and attracted better runners. You’ll see the difference when NBC broadcasts the games live for the rst time.

Does the Armory make money on the Millrose Games? It’s a very expensive event for us to produce. It costs about $700,000, and our total annual budget is only about $5 million. We kind of break even. DOSSIER

At least it gets people to run track, right? WHO HE IS Founder and chief We’re about more than running around in circles. We have a lot executive, The Armory Foundation, of programs to help people who live in the area. We help teens and a general practitioner in study for the SAT, offer them college counseling and so on. It’s private practice on City Island not hard to be accepted into our programs, by the way; we just SALARY $238,000 from The want commitment. Armory Foundation AGE 74 The Armory used to be a big homeless shelter. It still has one, doesn’t it? BORN Yonkers In the mid-’80s there were 2,000 homeless people living in the RESIDES Hastings-on-Hudson building, and you had to dodge them when you ran around the track. But things have changed. Today we have 200 homeless EDUCATION Fordham University, who live in a shelter underneath the Armory [and use] a separate Albert Einstein College of Medicine entrance. In 23 years together we’ve learned how to cohabit. RARE DISTINCTION In 1974 he became the rst native New Yorker to What advice do you have for people worried about homeless shelters win the New York City Marathon—and being set up near where they live or work? he’s still the only one who has. “I was up against some tough competitors, but the We work all the time with the people who run the shelter. For race wasn’t as popular as it is now. instance, if there’s graf ti on their entrance, I’ll send someone to

So my distinction might last forever.” BUCK ENNIS paint over it. We’ve held graduation ceremonies for people who STICKS AND STONES He grew up moved to apartments. It’s a mistake to ignore the shelter or across from a chicken farm in a rural part pretend it’s not there. of Yonkers. His father was a pilot who worked for the Air Force’s Strategic Air A lot of doctors complain that new rules and regulations have made Command; his mother, a secretary. Even their job dif cult. How do you cope? so, when he attended Fordham Preparatory I still visit my City Island practice twice a week. I’m glad to be a School, the other students mocked him for general practitioner—you get to learn so many different things. being a farmer from upstate. But it’s hard to hang out your shingle and get started now. You FAVORITE RUN Along Riverside Drive, generally have to be part of a big group. A friend at Columbia told from West 86th Street to the George me none of his medical students plan to be general practitioners; Washington Bridge. When he was training for they all want to be specialists. It’s where the money is. the marathon, he would continue across the bridge and run north up to Alpine, N.J. Any advice for someone thinking of taking up running? Start by going easy. People forget that the best natural form of exercise is walking, so see if you can walk a mile, and add some jogging to it. Over time if you can run 3 miles, that’s really good. Above all, get some fresh air. That’ll make you feel better. ■

8 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 6, 2017

P008_CN_20170206.indd 8 2/3/2017 10:20:03 AM AGENDA HEALTH CARE TEAM APPROACH: A new student center will foster collaborative NYC teaching hospitals learning. treat fewer minorities Study finds disparities by race and insurance type at city hospitals BY JONATHAN LAMANTIA

ew York City hospital pa- ance status—became even more pro- tients who are minorities, nounced after the passage of the ACA,” uninsured or on Medicaid the researchers found. are “strikingly underrepre- But Kenneth Raske, president of the Nsented” at the city’s private academic Greater New York Hospital Association, Feil family donates $12.5 million scholarships. Their philanthropy also medical centers, according to a new called the study “significantly flawed” to Weill Cornell Medicine has helped support the creation of study. and noted recent acquisitions that have a neurology unit and a translational In 2009, before the Affordable Care led academic medical centers to serve Weill Cornell Medicine received a $12.5 neuroscience research center. Act took effect, whites were about three more Medicaid patients. One of those million gift from the Feil family to build The new student center will include times as likely to be hospitalized at an deals was NYU Langone’s 2015 acqui- a 16,200-square-foot student center on space for instruction, study and collab- academic medical center in New York sition of Lutheran Medical Center in the campus of its Upper East Side med- oration, increasing the area dedicated City as blacks were. Brooklyn. ical school, the institution announced to student activities by 75%. It also will Five years later, after Obamacare had Last week NYU Langone’s chief clin- Jan. 31. have meeting places for the school’s been implemented, whites were still ical officer, Dr. Andrew Brotman, told Real estate developer Jeffrey Feil is more than 60 student groups and a stu- more than twice as likely to be treated Crain’s that the health system would vice chairman of Weill Cornell’s board dent lounge. at such institutions, according to the spend $500 million to expand the out- of overseers and chief executive of the “The direction we’re going in [in study, published online last week by the patient services of NYU Lutheran, Feil Organization, a real estate firm medicine] is a team-based approach, International Journal of Health Services. which serves a patient base that is 43% valued at more than $7 billion in 2013, and this student center will really allow The study also found that Medicaid Medicaid-covered. according to The Wall Street Journal. for that,” said Raul Martinez-McFaline, recipients and uninsured patients were Raske said geography can partly The donation increases the Feil fam- a fifth-year MD-PhD student at much less likely to receive care at aca- explain the study’s findings, as more ily’s support for Weill Cornell to about Weill Cornell Medicine, who demic medical centers—teaching hos- than 5 million New Yorkers live in $90 million, which includes fund- serves on its board of overseers and pitals with affiliated medical schools—a Brooklyn and Queens, which have only ing for the Belfer Research Building, provided feedback on the center’s disparity that became more pronounced two combined academic medical cen- endowed professorships and student design. — J.L. in 2014. ters, one of which, SUNY Downstate Medical Center, was not part of the study. Trump travel ban impacting medical this executive order has had unintended Raske said city hospitals residency programs consequences, and that in particular “are deeply committed to areas, such as medicine and information serving New York City’s vul- New York medical schools and res- technology, there are people whom this nerable communities and idency programs are taking steps to country needs who come from all over reducing health disparities.” support their foreign-born students, the world,” Brown said. The study’s authors rec- trainees and faculty affected by Presi- The travel restrictions might impact ommend that the state dent Donald Trump’s executive order the process for selecting medical res- reconsider the teaching hos- limiting travel to the United States from idents through the National Resident pitals’ tax-exempt status if seven predominantly Muslim countries. Matching Program. Medical students it’s determined they don’t At least one New York physician, a applying for residencies have until provide a substantial com- resident at Interfaith Medical Center in Feb. 22 to rank their preferred pro- munity benefit. Brooklyn, is stranded in his home coun- grams, and the facilities are identifying In New York City, try, Sudan, where he was visiting family their picks. researchers studied the Hos- when the order took effect Jan. 27. A citizen of one of those seven pital for Special Surgery, LaRay Brown, Interfaith chief execu- countries could be seen as a riskier NYU LUTHERAN is expanding its Brooklyn footprint. Memorial Sloan Kettering tive, said the hospital will hold open Dr. choice for a hospital, said Dr. Andrew Cancer Center, Montefiore Kamal Fadlalla’s residency slot. Yacht, chief academic officer at North- Medical Center’s Moses and Brown said Fadlalla had already well Health. “That will be factored in The report comes as the city’s pub- Weiler campuses, Mount Sinai Hos- undergone “extreme vetting” from the by our program director as well as lic hospital system is struggling to stay pital, NYU Langone’s Tisch Hospital Educational Commission for Foreign any other program director who has afloat and as the state is evaluating a pro- and Hospital for Joint Diseases, New Medical Graduates, which screens interviewed applicants from those posal to consolidate four cash-strapped York-Presbyterian’s Columbia and potential incoming residents. “I believe countries,” he said. — J.L. facilities in Brooklyn. Meanwhile, the Cornell medical centers and Long city’s teaching hospitals, such as New Island Jewish Medical Center. York-Presbyterian and NYU Langone, The authors said the disparities City increases mental health funding 2019, the IBO calculated. report annual operating profits in the could be explained in part by the fact by 25% to $1.2B in fiscal 2019 In particular, funding for behavioral hundreds of millions and continue to that financial pressures encourage aca- health services in city homeless shelters expand their reach. demic medical centers to care for fewer ThriveNYC, the de Blasio administra- will increase to $62.7 million in 2019 “The findings were even more stark uninsured and Medicaid patients, given tion’s 54-point plan to expand access from $8.9 million in 2015. than we expected,” said Dr. David Him- how low reimbursement rates are for to mental health services, will increase While there has been no indication melstein, a co-author and professor of Medicaid. But, they added, such pres- the city’s overall behavioral health bud- so far that ThriveNYC spending will public health at the City University of sures alone couldn’t account for the low get by 25%, to $1.2 billion in fiscal 2019 take money away from existing con- New York, a lecturer in medicine at numbers of black and other minority from $973 million in 2015, according to tracts, it will be important to monitor Harvard Medical School and a physi- patients at the city’s private teaching a report on the program released by the how money is allocated for behavioral cian at Montefiore Medical Center. “The hospitals because the disparity persisted Independent Budget Office. health in the coming years, the IBO academic medical centers are taking even after adjusting for insurance type. Before ThriveNYC launched in pointed out. care of well-insured white people. That’s “This confirms it,” said Judy Wessler, November 2015, about 75% of funding Spending on initiatives such as the their audience.” a community health advocate who has for the city’s behavioral health services 400-person Mental Health Service The researchers analyzed adult hos- long decried disparities at city hospitals. came from the state and federal govern- Corps, which is slated to cost the city pital discharges in 2009 and 2014 in “There are classes of care depending ments. About 78% of the funding for $48 million per year, could eventually New York and Boston. “This pattern has not only on insurance coverage but also ThriveNYC initiatives will come from result in cuts to some provider contracts,

COURTESY OF NYU LUTHERAN, MITCHELL GIURGOLA ARCHITECTS LLP not improved—and, regarding insur- based on race and ethnicity.” ■ the city between fiscal 2016 and fiscal the IBO suggested. — CAROLINE LEWIS

February 6, 2017 | CRAIN’S NEW YORK BUSINESS | 9

P009_CN_20170206.indd 9 2/2/17 9:16 PM AGENDA WHO OWNS THE BLOCK

6 METROTECH CENTER

NYU engineers big Brooklyn expansion School’s $500 million plan centers on downtown hub

BY TOM ACITELLI

ew York University announced in 333 ADAMS ST. late January that it would embark on Queens-based private developer Muss Development acquired this a 10-year, $500 million expansion 8,000-square-foot parcel from the city for $5.2 million in 2004. of its technology, engineering and It used the land to construct a 24-story, 291-room addition to Nnew-media footprint in downtown Brooklyn. the New York Marriott at the Brooklyn Bridge. That hotel originally 6 METROTECH CENTER opened in 1998 on seven floors of a 32-story municipal building at NYU’s effort comes as the once moribund com- 345 Adams St. (the wings are connected via an enclosed bridge). NYU took over the 5-story, 78,750-square- mercial district becomes an increasingly attractive With 376 rooms, it was the first large hotel to open in Brooklyn in foot building in 2014 through a merger with Polytechnic University. The building place to work and live. At the heart of the revival 68 years. It’s now owned by Muss, Marriott and HomeFed, a Califor- nia-based real estate investment and development firm. houses NYU’s engineering school. is the $350 million renovation of the former New York City Transit Authority headquarters at 370 Jay St., which NYU leased from the city in 2012. About a block away, at 6 Metro- 1 METROTECH CENTER Tech Center, is the university’s engineering school, created through 345 ADAMS ST. The 23-story, 1.2-million-square-foot commercial building is owned by For- a 2014 merger with Polytechnic The city owns this 14-story, est City Ratner Cos., the New York wing University, a private engineer- 363,390-square-foot municipal of publicly traded Forest City Realty ing and technology college with office building, which counts Hill Trust. Completed in 1990, it was the Country Barbecue and Hill Coun- first building on Forest City’s 16-acre Brooklyn roots stretching back to try Chicken among its newer, hip- MetroTech campus, which now in- the mid-1800s. per retail tenants. In late January cludes 11 buildings where more than Of 370 Jay St.’s 500,000 square Mayor Bill de Blasio announced 22,000 people work. a capital spending plan that in- feet, 147,000 will be used for urban cludes $94.5 million in improve- science education and research ments for the building that hous- programs, and 48,000 for classes offices for the Finance and Probation departments as well as 388 BRIDGE ST. rooms. The university plans to the Board of Elections. The Manhattan-based Stahl Organization ac- reserve 275,000 additional square quired the site of this 53-story, 590-foot-tall feet for new and expanding digital condo and rental apartment building for $10.8 technology fields such as gaming million in 2007. When completed in 2013, it was Brooklyn’s tallest building. It is now the and interactive media. A second-floor media com- third-tallest. mons will include virtual reality rooms and maker spaces. Work is expected to wrap up soon, and NYU said it will move into the building this fall. The university is also spending part of the $500 million on upgrades to the engineering school’s hub at 6 MetroTech Center, known as Rogers Hall, including the addition of lab and classroom space. 375 PEARL ST. 100 WILLOUGHBY ST. NYU’s investments will help make the streets- The private, 909-student Brooklyn Apartment developer AvalonBay Communities cape more attractive to businesses and the thou- Friends School bought and moved into the 7-story, 95,250-square- bought the site of what’s now Brooklyn’s sec- sands of commuters who use the five subway lines foot building in the early 1970s. ond-tallest building for $22.9 million in 2011. that run under 370 Jay St. The school is includ- The building had housed Brook- Construction wrapped last year on the 57-sto- lyn Law School. ry, 595-foot AVA DoBro, which includes 861 ing 20,000 square feet of new ground-floor and apartments. Only the 600-foot 333 Schermer- below-ground retail and community space as well horn St., near where Flatbush Avenue meets as making improvements to the plazas around the Livingston Street, is taller. building. That community space will include facilities for exhibits and performances. ■

370 JAY ST. The Metropolitan Transportation Authority surrendered the lease on the 13-story, 532,500-square-foot building to the city in early 2012. The city in turn signed a 99-year lease with NYU. The university agreed to pay the MTA $50 million and the New York Police Depart- ment, another tenant in the building, $10 million. The university pays an annual rent of $1. GOOGLEMAPS.COM, BUCK ENNIS

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

P010_CN_20170206.indd 10 2/2/2017 4:41:36 PM REAL ESTATE

Price tag of Javits Center revamp jumps by half a billion dollars

Cuomo pledged $1B last year, $550M short of new cost projection BY JOE ANUTA

tate officials pegged the cost of are expected to add 1.2 million square was selected to design and the Javits Center expansion at feet of exhibit and meeting space, mak- build the project, at a cost $1.55 billion last week—which ing the convention hall more compet- of $1.55 billion. is $550 million more than what itive with similar destinations around Why the discrepancy? SGov. Andrew Cuomo announced it the country. The New York Conven- Aside from the governor’s COST CENTER: Once upgraded, the convention complex would be a year ago. tion Center Development Corp., which announcement coming will be among the country’s largest meeting spaces. Cuomo in January 2016 proposed a runs the facility, did not appear to have before any design details $1 billion redevelopment of the center enough cash for a sufficient bond issu- had been ironed out, an in his annual address outlining his leg- ance. It did, however, control valuable Empire State Development spokes- The state will not increase its alloca- islative priorities and budget. real estate that could have been sold to woman said Cuomo’s initial projection tion. The remaining funds will be raised “It’s going to be a boon to the econ- fund the project. included only so-called hard costs: the through bonds backed by an existing omy, a benefit to the environment, and But the state later decided not to sell money spent on constructing the build- citywide surcharge on hotel rooms. The it’s going to be self-financed by the Javits those sites, as the market for develop- ing. Soft costs, which include consult- price tag for the project is unlikely to Center,” Cuomo had said. “That’s what I ment parcels began to go south, and ing fees, furniture, insurance and other rise much more because the state has call a win-win-win.” instead funded the project with $1 bil- non-construction line items, have been authorized a design-build plan for the At the time of Cuomo’s speech, it was lion in state money. Last week officials included in the latest numbers. Soft project, a measure that puts contractors unclear how the Javits Center would be announced that a partnership between costs typically are estimated at 20% to and designers on the hook for any cost able to pay for the renovations, which Lendlease and Turner Construction 30% of hard costs. overruns. ■

Midtown tower stake for sale

SL Green could raise $1 billion BY DANIEL GEIGER

SL GREEN, one of the city’s largest office- space landlords, is planning to recapi- talize 1515 Broadway in a deal that could value the 54-story Times Square tower at nearly $2 billion. The company has hired Doug Harmon and Adam Spies, sales brokers at Cushman & Wake- field, to market what will likely be a minority stake in the 1.75-million- square-foot spire. Selling an ownership interest in the building could raise nearly $1 billion for the $11 billion public real estate firm. The offering would follow another recent deal in which SL Green raised hundreds of millions of dollars in cash. According to reports, the company just sold a nearly 30% ownership interest in an office tower it is erecting next to Grand Central Terminal, known as One Vanderbilt. SL Green is selling the bulk of that stake to a Korean pension fund and a smaller interest to real estate development firm Hines, which is helping SL Green manage construction of the new building. SL Green in 2012 renewed 1515 Broadway’s anchor tenant, Viacom, in a lease that now stretches past 2030. Viacom, the owner of MTV, Spike and other networks, occupies about 1.6 million square feet in the tower, taking up the bulk of the office space. A source familiar with the offering said SL Green is selling the stake to raise money to pour into new investments, including potential distressed deals with residential developers struggling to secure construction loans amid concerns of an oversupply of

COURTESY OF GOVERNOR CUOMO’S OFFICE luxury apartments. ■

February 6, 2017 | CRAIN’S NEW YORK BUSINESS | 11

P011_CN_20170206.indd 11 2/2/17 8:45 PM AGENDA REAL ESTATE

421-a program wasted billions in city tax exemptions, IBO says Controversial program was designed to help housing developers, but Independent Budget Office finds that condo buyers benefited BY JOE ANUTA

controversial prop- necessary was knocked off the If 421-a were perfectly cal- erty-tax break that property tax bills of condo ibrated, a buyer who would aimed to encourage buyers who bought in 421-a be exempted from $50,000 housing develop- buildings. If the program were in property taxes over 25 Ament also funneled billions run more efficiently, the city years, for example, would pay of dollars’ worth of benefits to would have had some of that $50,000 more for the apart- condo buyers, according to a money on its books. ment. That way, all the extra UNINTENDED BENEFITS: Developers missed out on extra cash due to report released last week. “A program that does cash would go to the devel- inefficiencies in the program. The now-defunct 421-a not oversupply tax subsidies oper, the intended recipi- program was designed to would help make better use of ent, provided that land and lower developers’ costs to help scarce public resources,” the construction costs remained home and receive $50,000 in more for the sites’ sellers. make more new apartment report noted. the same. tax breaks. Gov. Andrew Cuomo is projects feasible in the city. It would be extremely dif- “It represents wasted dol- working to revive the 421-a But a report by the city’s Inde- Incentive buys ficult to craft a policy that lars because buyers are receiv- tax break in Albany. The cur- pendent Budget Office found A tax break can help condo precisely, but the IBO report ing more in benefits than they rent vision for the program that condo buyers were a big developers by allowing them found that 421-a was espe- pay for,” the report said. applies only to developers of unintended beneficiary of the to sell an apartment for more cially inefficient. On average, rental buildings and small program, suggesting that this money than the market would buyers were instead paying Missed targets condo projects, but a handful portion of the policy was far normally allow, because buy- about half the value of the tax The IBO also suggested of Albany legislators are push- too generous. ers would be willing to pay exemption. In our example, 421-a might have inflated land ing for larger condominiums From 2005 to 2015, $2.5 bil- extra knowing their tax bill that would mean the buyer prices. That would mean even to again be eligible for the lion to $2.8 billion more than would be zero for decades. would pay $25,000 extra for a less money for developers and tax break. ■

CRAIN’S Business Breakfast Forum Photo Credit: Buck Ennis Wednesday, March 1, 2017 New York Athletic Club 180 Central Park South 8:00 a.m. – 8:30 a.m. Registration and networking breakfast 8:30 a.m. – 9:30 a.m. Program Cost to Attend: $135 for individual ticket(s) $1,350 for table(s) of 10 You must be pre-registered to attend this event. No refunds permitted.

For more event information: Steven Banks Ashlee Schuppius 212-210-0739 Commissioner of New York City [email protected] Department of Social Services For sponsorship opportunities: Steven Banks will discuss the de Blasio administration’s homelessness Irene Bar-Am programs, public-assistance reforms and efforts to address poverty 212-210-0133 [email protected] and income inequality. Moderators: Erik Engquist, Assistant Managing Editor, Crain’s New York Business REGISTER TODAY Nikita Stewart, Reporter, New York Times crainsnewyork.com/events-sbanks Sponsored by: BUCK ENNIS

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

P012_CN_20170206.indd 12 2/2/17 8:45 PM AGENDA VIEWPOINTS

Businesses ready to oppose Trump’s policies but not Trump himself New York CEOs won’t turn on the president unless they see the nation’s future at stake

TRUMP’S POPULARITY IN NY MORE THAN 400 New could count on one hand the number York tech executives who would say so publicly. 100% last week signed a e primary obligation of the nation’s letter opposing Presi- top business leaders, a er all, is to ben- 80% dent Donald Trump’s e t their companies, and getting on the order restricting immi- wrong side of a president, mayor or gov- 60% gration from seven ernor is not the way to do that. So tech 37% Muslim-majority leaders made nice with Trump a er his 40% % GREG DAVID countries. Goldman election, and auto-company executives Favorability Sachs’ CEO issued a have been falling over themselves to nd 20% strong statement condemning the an accommodation with him precisely move. Other executives chimed in. because his threats to curtail trade with 0% Feb. ’16 Aug. ’16 Jan. ’17 But that doesn’t mean those busi- Mexico could hurt their businesses. ness leaders are eager to enlist in any Or consider the way the city’s real SOURCE: Siena poll major e ort to mobilize resistance to estate industry forged such a strong Trump and his agenda, just as they alliance with de Blasio shortly a er his to nance Dinkins’ general election believed the city’s crime and scal crisis won’t oppose Mayor Bill de Blasio’s election. No industry is more depen- campaign because they assumed he could ruin its future. A year later they re-election e ort this year or Gov. dent on local government than real would win, even though Rudy Giuliani opposed Mario Cuomo’s e ort for a Andrew Cuomo’s next year. Here’s why: estate, because it needs city approval for represented an alternative more com- fourth term for similar reasons. As Andrew Ross Sorkin noted last virtually all development. e mayor patible with their industry. Virtually Executives will do the same against week in e New York Times, the vast wanted more a ordable housing, and no businesspeople supported Michael Trump only if they come to believe the majority of corporate comments on the industry came up with a way to Bloomberg’s 2001 campaign, even very future of the country is at stake. the immigration action were narrowly do that pro tably. Both sides are now though he was one of their own, because It would be a big step, and it wouldn’t focused and carefully avoided direct deeply intertwined. they didn’t think he would be elected. be taken quickly—only if they believe criticism of the president. During the It has always been that way. When Only twice did business groups in they have no choice. ■ campaign in the fall, Sorkin wrote that David Dinkins defeated Ed Koch in New York mobilize against an incum- every CEO he met with told him they the 1989 Democratic primary, execu- bent. e rst came in 1993, when GREG DAVID blogs regularly at feared a Trump presidency, but that he tives who had supported Koch rushed they supported Giuliani because they CrainsNewYork.com.

Protect people and jobs, not stuff, in industrial zones Keep self-storage facilities at bay in manufacturing areas BY STEVE HINDY

rooklyn Brewery was among who were fortunate enough to own their the rst wave of new indus- property also sold and moved. trial businesses to establish a Suddenly we were surrounded by home in the Williamsburg/ hotels, bars, restaurants and nightclubs. BGreenpoint area of north Brooklyn. We didn’t complain too loudly because When we opened in 1996, our neigh- many of them bought beer from us. But bors were synthetic-textile producer it became clear that our days in Wil- Newcastle Fabrics, mirror maker Heri- liamsburg were numbered. e value tage Glass and a host of small manufac- of our landlords’ properties had soared turers, including a builder of Broadway with the prospect of selling or renting theater sets. Nearby were Terra Chips, to a hotel or a club. SAFE AT HOME: Angel Bakery, Acme Smoked Fish and All that changed when the de Blasio City policy helps a plastic-bag maker. e East River administration and the City Council Hindy’s brewery stay in Brooklyn. waterfront was lled with massive, agreed that true industrial businesses vacant industrial buildings. should be the top priority in IBZs. Our We held public meetings that led to landlords are now talking to us about rezoning that allowed residential devel- extending our leases beyond 2025. e expanded o ce and restaurant will a trade or manufacturing. An industry opment on the waterfront, created a ey also want to develop the air rights add more. provides employment, useful work and much-needed park and established an above our rst- and second- oor oper- Restricting commercial develop- living wages for its employees. Industrial Business Zone to enable man- ation, presumably to build o ces. We ment in the IBZ is great news for us e success of the Brooklyn Navy ufacturers like us to remain in the neigh- need more o ce space ourselves, and and other manufacturers. We will be Yard and Industry City in Sunset Park borhood. Unfortunately, the ne print we are considering building a restau- permitted to maintain a presence in a proves there are many industrial busi- also permitted hotels, storage ware- rant and roo op beer garden. neighborhood that we helped develop. nesses looking to set up in New York houses and other commercial enter- Our brewery is the biggest exporter I have read that members of the City. And the success of Brooklyn prises in the IBZ. For landlords, those of cra beer in America, and we now self-storage “industry” feel they too Brewery has proved that an IBZ can be uses are much more pro table than draw 3,000 to 4,000 visitors every should be allowed in IBZs. I emphati- an alternative location for tomorrow’s manufacturing. So Newcastle’s owner week. is helps us maintain our head- cally disagree. ose companies employ true industries. ■ sold his building to the developers of the quarters and a manufacturing facility few people. ey hardly qualify as an Wythe Hotel and moved his business to in New York City. We employ about 115 industry. An industry makes things and Steve Hindy is co-founder and

BUCK ENNIS North Carolina. Other manufacturers people full time and about 60 part time. employs people in productive labor, in chairman of Brooklyn Brewery.

FEBRUARY 6, 2017 | CRAIN’S NEW YORK BUSINESS | 13

P013_CN_20170206.indd 13 2/2/2017 4:42:40 PM AGENDA VIEWPOINTS

DRIVER’S SEAT: Foley on his company’s Why New York’s tech sector bike will surpass Silicon Valley’s In the next business revolution, the city’s advantages will win out BY JOHN FOLEY

hat do WeWork, Bet- New York, with its vastly greater diver- diversity. It makes sense that Etsy, a terment, Warby Parker, sity of businesses. marketplace for artisans, is headquar- Rent the Runway, The city is the undisputed global tered in Brooklyn, where many of them Casper, Blue Apron, leader in industries, from finance and hone and share their craft. Compass,W Cadre and Peloton have in advertising to fashion and the arts. To Of course, the most important and common? Not only do they represent be part of the financial technology revo- relevant tech-enabled digital-only the next wave of technology disruption lution, you join Betterment, LearnVest, media companies are here in the world’s to traditional economies, but they were Bond Street and other startups in New media capital: Vice Media, BuzzFeed, all born in New York City—the nerve York. Just as Bloomberg LP benefited Quartz, theSkimm, Refinery29, MLB center for the next business revolution. from knowing the nuances of financial Advanced Media and others. The New But isn’t Silicon Valley still the place services, so will New York’s fintech dis- York Times and The Wall Street Journal fashion, advertising and branding. for tech entrepreneurs to prove their ruptors. The same applies to Rent the are themselves becoming tech compa- As technology disruption moves chops? As a tech-company CEO who Runway, Bonobos, Outdoor Voices and nies as they try to survive the decline into traditional industries, requiring believes technology is the cornerstone other New York–based, fashion-focused of their print business. All benefit from deeper and more nuanced understand- of opportunity, I have felt the gravita- tech startups changing the way apparel the city’s unique positioning, diversity ing, New York is poised to leverage its tional pull of Silicon Valley. Everything is marketed and procured. of thought and access to information. diversity of industry. True, the next Ins- important in tech comes from there, Similarly, WeWork and Compass, Unlike Silicon Valley, New York has tagram might still come out of Silicon right? HP, Intel, Apple, Facebook, Goo- which are revolutionizing commercial embraced businesses that marry tech- Valley; some of the smartest and most gle, Salesforce and on and on. Where workplaces and residential real estate, nology and consumer goods, includ- ambitious tech entrepreneurs remain else would you rather be? respectively, grew out of the densest ing my own company, Peloton. Our there. But the Valley’s days as the undis- New York City. That’s where. real estate landscape in the country. business could not have been born puted leader in all things tech are num- The business revolution of the next Cadre, another city startup, benefits anywhere else. Peloton sells a high- bered. There are just too many trends several decades will move beyond the from our community’s understanding end indoor bike with a touch screen to that an engineering-focused entrepre- early tech plays—faster, smaller chips of the financial and real estate worlds. which we stream fitness classes from our neur won’t see if not in New York. or connecting people and information Do you want your national food New York studio to riders at home. We This has always been the city for virtually. It will be about transforming delivery based out of the Valley or the learn from the likes of SoulCycle, Fly- multifaceted professionals who love large industries that no longer meet culinary capital of the world? Enter wheel, Barry’s Bootcamp, Equinox and diversity or aspire to learn across many their customers’ demands into some- Blue Apron. And the most innovative other fitness companies that have built different spectrums. Now it also is thing more efficient and personal. That and successful company in local food national brands out of New York. And the place for those wishing to be part can happen only where those industries delivery—a hallmark of New York—is as an aspiring global lifestyle brand, we of the next generation of technology are. So although Silicon Valley domi- Bronx-based FreshDirect. benefit from our proximity to Fifth and disruption. n nated the first wave of technology dis- There are less obvious examples Madison avenues, with its understand- ruption, the advantage has shifted to that benefit from New York’s size and ing of consumer sensibilities, retail, John Foley is Peloton’s founder and CEO.

Shield New Yorkers from heating-oil fraud The Business Integrity Commission can keep bad actors out of the industry, its leader writes

“THE DIRTY SECRET in your The article centered companies accountable. Commission. Before creating a more collabo- customers. Union compa- basement” (Jan. 9) shone on a more insidious The city did take signif- granting a license, BIC rative oversight structure nies cannot compete with a light on corrupt prac- scheme, known as icant actions after the would conduct a com- to protect consumers and such a “business model.” tices in the heating-oil “blending.” To cut costs, Manhattan D.A. indict- prehensive background the general public. Moreover, union drivers supply industry in New corrupt heating-oil ments. Agencies issued check on the applicant Intro No. 1268 also are unlikely to risk both York City. It referenced delivery companies reports to help consum- to ensure that corrupt would help the many their careers and union a recent Manhattan illegally blend unrefur- ers protect themselves companies and individ- reputable companies in membership (with district attorney’s office bished waste oil into from fraud, and agencies uals are kept out of the the industry by barring benefits and pension) to investigation (con- the heating oil prior to involved in the industry industry. This regulatory competitors that engage engage in these frauds. ducted with my office delivery. Besides being a enhanced and improved model is a proven suc- in fraud. Local union Criminals intent on and other city agencies) fraud on the customers, their measures. But as a cess: In the past 20 years, members, who comprise stealing heating oil will that revealed large-scale who receive oil of a lesser Jan. 16 Crain’s editorial BIC has used a similar approximately half of always find ways to sub- fraud committed by quality that damages pointed out, regulators licensing structure the total drivers in the vert antifraud measures several unscrupulous boilers, blended oil need a better, more com- to eliminate systemic industry, also would be on the delivery trucks. heating-oil delivery releases harmful metals prehensive plan. corruption in the com- strengthened. We under- The only way to pre- companies that were and other contami- That plan exists: Intro mercial refuse collection stand that the companies vent shorting, blending “shorting” their custom- nants into the air when No. 1268, a bill spon- industry. Importantly, indicted in the Manhat- and other schemes is to ers—charging for more burned. This exposes all sored by City Council- BIC’s application process tan D.A. cases were all ensure that only compa- oil than they actually New Yorkers to the risk man Antonio Reynoso, also would establish a nonunion. Their drivers nies adhering to the law delivered. This is not of asthma, heart prob- would require heating-oil database of the partici- were paid low weekly are permitted to partici- new. In the past 30 years, lems and other ailments. supply companies pants in the heating-oil salaries, supplemented pate in the industry. other prosecutors have Currently this operating in the city to supply industry that by illegal cash payments DANIEL D. BROWNELL brought similar cases, industry has no licensing obtain a license issued would be accessible to based on the amounts Commissioner but the fraud persists. structure to hold corrupt by the Business Integrity other city agencies, thus of oil they stole from Business Integrity Commission

CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to [email protected]. Send columns of 475 words or fewer to [email protected]. Please

BUCK ENNIS include the writer’s name, company, address and telephone number.

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

P014_CN_20170206.indd 14 2/2/2017 4:43:59 PM AGENDA THE LIST LARGEST EXECUTIVE-RECRUITING FIRMS Ranked by number of NY area recruiters THE SCOOP TRENDS

RECRUITERS FIND NEW NICHES EXECUTIVE EXPERTISE The majority of the firms on Crain’s list specialize in recruiting financial professionals. he financial sector forms the foundation of New York’s At least six firms list 10 other industries as their specialty, with health care, information executive-recruiting industry. Twenty firms on Crain’s list of the technology and accounting taking top slots. largest executive recruiters specialize in accounting, financial services or hedge funds. The Bachrach Group (No. 5), long Total number of firms Financial services Ta financially focused recruiting firm, recently expanded into industries 18 where other recruiters don’t have a large presence, including construc- Health care tion, engineering and manufacturing. 12 “We started out as a boutique finance and accounting firm 40 years Information technology 9 ago, and in the past two years we’ve changed the model of how this com- Accounting pany works,” said Anthony Fanzo, a partner at Bachrach. “Executive 8 search is now our biggest growth area.” Digital From 2014 to 2016 Bachrach increased its New York 7 Human resources billings from about $24 million to $42 million, and % 7 upped its recruiter count from 54 to 95. The growth Marketing 7 is largely due to a newfound ability to train inexperi- 75GROWTH in enced recruiters. Consumer billings of The 6 “In the past we steered away from going with a lot Bachrach Group Life sciences of rookie recruiters,” Fanzo said. “But we now have the since 2014 6 resources to get these younger recruiters trained and Retail 6 up to speed. We have weekly classes and more senior- Technology level recruiters that help with training. 6 “In some agencies, it’s sink or swim,” he continued. “They’ll hire some- 05101520 one, sit them down, tell them to make a phone call. But they don’t know what to do. We’re constantly coaching and trying to put people in posi- tion to maximize their earnings potential.” % In the last six months, Bachrach launched a fast-growing division that recruits human resources executives for companies. 76.2 67 103 The more that firms have their own internal recruiters, the less they’ll AVERAGE percentage NUMBER of New York–area NUMBER of U.S. need to turn to executive agencies. But Fanzo said he isn’t concerned that of billings from retained recruiters hired by the top recruiters hired by the top his recruiters will be poached by the companies Bachrach serves. searches* 25 firms in 2016, a 4.6% 25 firms last year, a 4.2% “There’s a mantra that recruiters don’t leave the agency side to go increase from 2015 increase from 2015** internal,” he said. “Internal recruiters have a limited career path with a SOURCE: Crain’s research ceiling. A good agency recruiter is making a lot of money.” *Among the 17 firms to provide this data point. — GERALD SCHIFMAN **Excluding DHR International, which didn’t provide a 2015 U.S. recruiter figure.

CONTINUED ON PAGE 16 February 6, 2017 | CRAIN’S NEW YORK BUSINESS | 15

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P015_P016_CN_20170206.indd 16 2/2/17 7:23 PM SUBJECTSILICON ALLEY| CATEGORY | CACHE REWARDS HOW TO MAKE $$$ IN TECH Venture capital spending cooled in 2016, but tech remains one of New York City’s hottest sectors. Here are 18 ways to get in on the action as the industry matures

BY MATTHEW FLAMM

SKIP THE MIDDLEMAN E-commerce on a grand scale was once all the rage in New York. Gilt Groupe, for instance, was briefly built up to be an East Coast version of Amazon. (Val- 1ued at $1 billion in 2011, the onetime flash-sale leader was sold last year for $250 million.) But the direct-to-consumer model that Warby Park- er helped to pioneer has worked out much better. Selling eyewear the company designed and man- ufactured itself, the online retailer cut out a series of middlemen to offer a premium product at a low price point. And Casper, the Manhattan-based mattress company that launched in 2014, tweaked the model by offering just a single type of mattress (it now also sells a pillow, some sheets and a mattress for dogs). With $70 million in backing, the company reportedly reached $200 million in revenue last year. Similarly, Brooklinen, which has taken on no outside investment, raised nearly $240,000 in an oversubscribed Kickstarter campaign to launch its direct-to-consumer line of sheets, pillowcases and duvet covers in the summer of 2014. Based in a WeWork location in Dumbo, the company had $21 million in sales last year, up from $1.1 million in 2015, according to Vicki Fulop, who founded the GRYD LOCK: company with her husband, Richard. “Our sheets Peter Feldman’s firm, start at $99,” she said. “In a brick-and-mortar store DataGryd, is hurrying to they would cost $500.” keep up with demand.

KEEP IT SIMPLE You don’t have to be a disrupt- er to find a place in the tech sector. Design and development studio Fueled has found its niche ACTIVATE THE WORKPLACE Height-adjustable STAY AWAY FROM AD TECH Advertising tech- by building mobile applications for startups, desk maker Varidesk, based in Dallas, is see- nology has been key to New York’s tech sector 2including Warby Parker, QuizUp and KeyMe, and ing a boom in business among New York tech since the launch of Doubleclick in 1996. But old-line businesses, such as Apple, Verizon, MTV and media companies. CEO Jason McCann it’s a crowded field, known for underperform- and Porsche. It even overhauled the mobile appli- 3said the company, which launched four years ago, 4ing stocks and for customers, including newspaper cations for drugstore brand Rite Aid. Founded in has sold more than 100,000 standing desks in the and magazine publishers, who say they pay too 2010, the company was profitable by the end of its metro area in just the past two years. “Tech is on much for the services. A bright spot: AppNexus, first year, said co-founder Ryan Matzner. It now has the forefront of the active office,” he said. That spells the biggest independent ad-tech player, confiden- nearly 100 full-time employees, one-third of them opportunity for architects, interior designers and tially filed paperwork for an IPO this year, The Wall at its SoHo headquarters. Revenue in 2016 topped workplace consultants who specialize in making Street Journal reported in November. Valued at

BUCK ENNIS $10 million, Matzner said. offices and office life better for your body. CONTINUED ON PAGE 18

February 6, 2017 | CRAIN’S NEW YORK BUSINESS | 17

P017_P018_CN_20170206.indd 17 2/2/17 9:17 PM P017_P018_CN_20170206.indd 18

BUCK ENNIS 18 SILICON ALLEY |

CRAIN’S NEWYORKBUSINESS 10 7 6 5 8 9 co-founder Adam Enbar. Adam co-founder long-term,” said effectively grow to us allow will that frastructure in an “We’re to build time. trying full job to study have their to quit don’t students and $15,000 bill, al usu the with compared abargain is program— the online for tuition The backing. capital venture in of $14.5 million help the with it developed gram pro online-learning an via tripled however,Student enrollment, has puses in six countries. countries. six in puses 2011, in cam District now20 has Flatiron the bly, in launched which Assem General coders. for skilled city the across need insatiable an filling jobs, decent-paying find ates who co-founded the company with Anand Sanwal. Sanwal. Anand with company the who co-founded Sherry, Jonathan said then, since year doubled every 2013in andhas figures Revenue seven hit rations. corpo to large intelligence that now sells Insights CB sets. data their in buried strategies the unearth to intelligence artificial using itMore began recently trends. on investing takes cheeky for as smart, well went as forand on ago-to todata source become 2008 in launched Insights CB investment. capital for venture database “Bloomberg-level-quality” could seek a valuation of $1.5 to $2 billion. avaluation billion seek could company 2015,$1.8 in Chelsea-based the billion Manhattan, doubled sales to $10 million in 2016. to $10 in doubled sales million Manhattan, in businesses medium-size and small- serves also which Stealth, thespring. in completedis phase first its when country the in connections fastest of the some provide will that network fiber gigabit-speed for a Brooklyn conduit in digging crew struction acon has Pandit Communications. of Stealth CEO Pandit, Shrihari said areas, those wouldn’t touch” old-been needs data.” needs world the in “Everybody businesses. of New York needs server data the supply that companies to the space who leases Peter CEO Feldman, said growth,” of the opment because plan 2014. my devel “I’ve to expedite had in began Hudson that aproject St., five years or so as their gradu their as so or five years past the during dramatically have grown camps boot month TRAIN… STORE DATA STORE square-foot build-out at 60 60 at build-out square-foot of 240,000- its half second the up operator,dependent data-center speeding is Queens where the only choice has typically typically choice has only where the Queens and of Brooklyn parts in networks speed high- building city, are the help from with CONNECT tives in their early 30s decided to create a to create decided 30s early their in tives execu Express American two ago, About adecade ANALYZE AND RESEARCH cation, in lower Manhattan. lower in Manhattan. cation, onelo just brick-and-mortar has still School old Flatiron E-TRAIN …OR PROVIDE THE PERSONNEL Flatiron District–based Mondo, has grown Mondo, grown has District–based Flatiron players, smaller the One of needs. staffing tech to fill now vie ployment companies fashioned DSL. “The larger companies companies larger “The DSL. fashioned prxmtl $6,000— approximately

Schools offering three- offering Schools CACHE REWARDS Independent Internet providers, providers, Internet Independent

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6,2017 “THIS ISA$30BILLIONMARKETWE’RE - - - - SO HUGE,YOUDON’TNEED 11 12 ALL CHASING.THEPIEIS way around a venture-backed deal and know the the know and deal aventure-backed way around their know that counsel for experienced looking “Foundersare time. right at the place right the in been have clearly technology and on media a focus New York with profession, small the and law firms across traction have gaining been firms boutique Valley’s &West. Silicon Fenwick and But & Rosati known for its range of services and its generosity (its generosity its and of services for range its known startup Manhattan by the Q, to Managed tenance fited our growth,” said co-founder Dan co-founderDan said growth,” Teran. fited our bene adoptercrowd early really “The markets. four employees across to 1,000 grown has company the 2014,in benefits). launching Since workers have full the growing industry of executive recruiting.) of executive industry growing the big ofpage on piece it.”15 forList” more (See “The on so youis pie huge, don’t “The Johnson. Tim a need CEO said we’re chasing,” market all a$30 billion is “This placement for does. aone-time a commission taking than revenue amore stream dependable vides pro that arrangement out consultants—an as them hire and specialists right the locate competition, the of ahead trends technology to spot been has strategy Its 2005. in it scored million $6 the from cry a far year, last million $90 Revenue was positions. tech and marketing on digital business entire its by focusing A BIGPIECEOFIT” ers are outsourcing cleaning and main and cleaning outsourcing are ers employ Increasingly, well. as game, their have up step to offices workers mature, its and industry tech the As UP CLEAN powerhouses as Wilson Sonsini Goodrich Goodrich Sonsini Wilson powerhouses as to such have would turned support gal of le need in capitalists venture and ers ACCOUNT AND ADVISE - found ago, Long neighborhoods. outer-borough in underserved fiber network a high-speed are layingworkers Communications BROADBAND: - - - - -

14 13 19 18 the moment, like LaCroix sparkling water; water; sparkling LaCroix moment, like the et flour; and the dystopian liquid meal replacement liquid meal thedystopian and flour; et crick with made Exobars, protein cold-brew coffee; veloping practices that serve tech startups. tech serve that veloping practices where New York–basedde in invested have firms accounting, in true is same The he said. 2008, since of practice its the size doubled has firm Midtown &Amburgey. The 14-year-old Baldachin at Hand partner managing Baldachin, players,” Alan said all their rides up the West up the Side rides Highway.” their all Strava they thaws, Andwhen it up tohooked Zwift. to be seem startuppers the all winter the “In tures. Ven Bridge founderof Brooklyn the O’Donnell, golf,” new Charlie the is said “Cycling platform. on the to others connects and ride their tracks that app amobile Strava, use can they outdoors, riding Stealth Stealth quires stocking the office with brands of brands with office the stocking quires re that and nourished, and hydrated ers staff sun-starved their to keep need stant MAKE FAD FOODS… …OR KEEP IT COMPETITIVE riders compete with each other. When other. When each with compete riders stationary-bike lets that a platform Zwift, with agame into cycling indoor turning GROW Bitly, Harry’s and Twitter. and Bitly, Harry’s Birchbox, including New York firms, tech to a who’s plants potted supplies who of fe-or mingling. after-hours for microbrews small-batch local, fresh, to chill which one in has startup ing KEGERATORS SELL 16 15 17 had at the end of 2015. athad the it year, end number double of the the in New its the staffers York office by to have 30 expects company Francisco preferences). on users’ data San The menu (itof tech-enabled its collects because provider apopular become in 2015,in year. launch its did Hungryroot business the 10 times a year, roughly units 1million reach to on pace are sales says McKean Benjamin CEO minutes. in prepared be can that meals vegetable-based City, creates Island Long in based to- direct- sector. The tech ners to the din and lunches near-instant ing by provid grown has that company Soylent (a Valley favorite). Silicon founder Stephen Sokoler. to cope,” tools need said hard very ing of 10. for atotal “Peoplecities, work to five more services its of expanding midst York, the in is company the and New in teachers meditation full-time 2015, in by Parker now employs 10 session at corporate War held first its

Talk about finding a niche. The Sill Sill niche. The a Talk about finding consumer packaged-food startup, Hungryroot is one local one is local Hungryroot and alone, on snacks live workers cannot Millennial …OR BALANCEDMEALS… trucks and restaurants, has has restaurants, and trucks food with partners that Cater, concierge” a“catering …OR DELIVER THEM RELAX… Journey Meditation, which which Meditation, Journey out. stressed for the cure new the is Meditation sules.

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2/2/17 9:17 PM SUBJECTAIR RIGHTS | CATEGORY| REAL ESTATE

Broadway’s $103 average ticket price. The fund also goes toward initiatives to bolster the industry at a grassroots level and is overseen by city officials and city-appointed members of the theater community, including Lin-Manuel Miranda, creator of the hit musical Hamilton. “You need to have thriving, small nonprofit theaters to groom talent, from lighting technicians and stage hands to the actors,” said Tom Finkelpearl, commissioner of the Department of Cultural Affairs, who is a member of the committee that awards money from the fund. “The Lin-Manuel Mirandas don’t appear out of nowhere.” The Theater Subdistrict Fund just finished spending about $2.2 million of air-rights proceeds on diversity initiatives in the theater industry. About $1.5 million remains, Finkelpearl said, which—along with money from future air-rights sales in the district—could next be used to help PIE IN THE SKY: Millions of dollars are at stake, pitting address the spate of closures among small theaters theater titans against a city in the city—80 in the past 15 years. fund for grassroots initiatives. “That’s definitely one of the cracks in the industry right now,” he said. Missed hits The city claims that it always meant to reap or the past two decades, one of the 20% of the air-rights sales. According to a study by biggest hits on Broadway hasn’t been REBNY, Broadway theater owners sold more than TAPPING a blockbuster show. While most plays $165 million of air rights between 2006 and 2016. If and musicals barely break even, major the fund had been collecting 20% of the proceeds, it theater owners, including Jujamcyn and would be more than $20 million richer. Fthe Shubert Organization, have reaped more than Instead, some of Broadway’s most established BROADWAY’S $155 million from a 1998 zoning change that gave players kept those proceeds at a time when the them the leeway to sell air rights—unbuilt space industry was doing record business. According to above buildings that is zoned for development—to the Broadway League, a trade association, Broad- UPSIDE property owners across the Theater District. way shows took in $1.37 billion in ticket sales and This month, however, the city is hoping to get had attendance of 13.32 million in the 2015–2016 The city wants a bigger share the approval it needs to grab a bigger share of those season—both all-time highs. of theater owners’ air-rights sales, profits going forward. “You can’t look back and finger-point and say, but critics say the price is too high That proposal has drawn boos from Broadway ‘Oh my God, they did something they shouldn’t and the Real Estate Board of New York, the city’s have done by not collecting the 20%’,” said Carl biggest real estate industry lobbying group. Weisbrod, the outgoing commissioner of the BY DANIEL GEIGER The plan to raise taxes on air rights also has Department of City Planning, which is spearhead- rekindled bigger questions about how much coming the effort to raise the toll on Theater District pensation should be granted to landmarked prop- air rights. “Times Square was the first area where erties such as Broadway theaters, whose owners are there was a plan to float air rights across a district, restricted from cashing in on the potential profits and I think it takes time and some trial and error to of redeveloping them into state-of-the-art venues figure out the best way to do it.” or replacing them altogether with more lucrative Councilman Corey Johnson, whose district development, such as office, retail, hotel or residen- includes most of Broadway and whose approval is tial space. required for the toll on the air rights to be raised, The city now is aiming to take a 20% cut of any expressed skepticism about the city’s plan at the air rights that theater owners are able to sell and recent council hearing. establish a minimum floor price of $346 per square “The proposed 20% contribution rate,” Johnson foot. That translates to at least a 400% increase over said, “seems like too much of an increase.” the current flat fee of $17.60 per square foot. Johnson even suggested the Department of City “We believe this minimum increase is onerous, Planning was seeking the change to create parity excessive and unfair,” Michael Slattery, a REBNY with its plan to rezone Midtown East. senior vice president, said late last month at a “I wonder if this has to do with other large-scale City Council hearing held to discuss the proposed land-use actions that are coming up in the borough price bump. of Manhattan that could be influenced by this,” he said. Funding the cause The Midtown East plan, which began public Big theater owners have largely remained quiet, review last month, allows owners of landmarked leaving REBNY to articulate their opposition. buildings to sell their air rights throughout that dis- Executives at Jujamcyn, the Nederlander Organi- trict, with 20% of the proceeds going toward transit zation and the Shubert Organization declined to improvements. There has been speculation among speak for this story even though their venues, such zoning experts that the city Planning Department as the St. James, the Neil Simon and the Shubert moved to address the flat fee in the Theater District theaters, respectively, could be impacted by the pol- because it could have drawn complaints from Mid- icy change. town East landmarks chafed by the 20% levy. Their opposition could be unpopular. The city Weisbrod dismissed the connection. has collected about $9.6 million so far for what’s “The Theater District issue was in the works called the Theater Subdistrict Fund, a pot of money much longer than east Midtown,” Weisbrod said. used to support nascent theater groups, subsidize “I don’t think there’s any disagreement anywhere smaller budget productions and help make theater that the current rate of $17.60 is an insufficient

BUCK ENNIS more accessible to audiences who can’t afford amount.” ■

February 6, 2017 | CRAIN’S NEW YORK BUSINESS | 19

P019_CN_20170206.indd 19 2/2/17 8:45 PM

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BUCK ENNIS COFFERS CITY 20 |

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| New York taxpayers millions ROAD RAGE Locals who register who their Locals cars inother states cost BY AARON ELSTEIN

F ebruary 6,2017 O and vehicle registrations. annually infees for license plates, titles ets and deprive state the of $1million $73 million inunpaid parking tick- cars registered out of state cost city the ists live who inNew York but drive were New York residents, not visitors. that suggests many of cars’ those owners plates inBrooklyn—a occurred number ing cars with Pennsylvania license 25% of accidents all state inthe involv- state Senate report found that nearly registered cars on road, the but a2011 provide an number exact of improperly but doesn’t help pay for Iget them, mad.” tage of benefits,free like parking,street said. “When someone advan takes else - Ford Fusion inNew York,” Malakoff precious parking free spaces. of millions of dollars inrevenue of making use while bother. As aresult, cheat they state the and city out within 30days of moving to state, the but many don’t to register cars their with New York authorities registered inother states. Newcomers are required number of New York City residents drive who cars ker is a man on a mission: bringing to light largethe “But Ididn’t forget.” space. avacant nabbed and front of him in swerved The also found report that motor Neither city the nor state the could “I pay alot to register and insure my days These the retired commercial estatereal bro- “I got over it,” 70-year-old the Malakoff recalled. streets around his West his Side apart around streets the cruising was Malakoff Harry ago, years 30 more than ne evening when a car with Utah license plates license Utah with acar when for to park aplace ment looking - FACTS those drivers those drivers ticketsby parking the cityinunpaid REPORTED $73M ESTIMATED 25 out ofstate registered with cars age ofNYCdrivers - % cost to costto average spend$1,182annually insuring cars, their ing hefty insurance rates. New Yorkers statewide on ple: Registering avehicle inNew York means pay- Insurance savings aretempting revenue.$93 million intax suggests, New York could have lost out on more than outchased of state, as Brooklyn the accident number 2015. If up to 25% of residents’ vehicles were pur Department of Motor Vehicles registration rolls in Approximately cars 125,000new were to added state Book—must fork over about tax. $3,000insales for car—$33,560, a new according to Kelley Blue revenue. A New Yorker pays who averagethe price aback seat take to lossstill the of potential tax sales percent- The reason forthe rampant evasiontax is sim- But unpaid those tickets and fees uncollected stantial consequences for individuals in New York there because are no sub- sion continue seriousproblems to be premiums.underpriced cost insurers $19million eachyear in York but register car their out of state estimates that people live who inNew state Department of Financial Services lobbied Albany to crack down. The The insurance for industry years has cars aren’t driving just Malakoff crazy. about 30%less. In Pennsylvania, average the rate is common on city’s the packed streets. fender because in part benders are so ciation of Insurance Commissioners, bia), according to National the Asso - New Jersey and of District the Colum- third-mostthe in nationthe (behind “Registration fraud and rate- eva New Yorkers drive who out-of-state - 2/2/2017 4:45:54 PM who lie about where their car is garaged,” act because so many of their constit- said Ellen Melchionni, president of the uents drive cars that are registered in New York Insurance Association. “Real other states. repercussions need to be put in place to Malako has for the past 30 years discourage individuals from engaging in urged the city to introduce parking fraudulent behavior.” permits reserved for locals, as a way ere has been talk of “real repercus- to reward New Yorkers who register sions” for a long time, but little action. here. e idea was last rejected in 2012, In 1987 New York state and city o cials a er the city’s transportation commis- searched streets and garages at night and sioner said parking permits would be found that about 10% of cars were regis- costly to administer and contribute tered out of state. ey estimated that the “REAL REPERCUSSIONS NEED TO to a “sense of exclusion” in adjacent city was losing $20 million per year in neighborhoods. sales tax, e New York Times reported, BE PUT IN PLACE TO DISCOURAGE ere’s little for the exasperated but nothing was done. Malako to do but walk the streets of ree years ago, the issue returned to INDIVIDUALS FROM ENGAGING IN his Chelsea neighborhood and count the fore when the state Senate approved FRAUDULENT BEHAVIOR” the out-of-state cars. a bill that would have made listing a false On a recent weekday morning, he address on a car insurance or vehicle reg- discovered that nearly 30% of parked istration form a felony. Department’s job to ensure cars are registered prop- cars had out-of-state plates. It isn’t always easy to “ is is no little white lie,” said one of the bill’s erly, but state o cials privately say such checks determine which cars belong to visitors and which sponsors, Sen. Diane Savino, D-Staten Island. “If are not a high priority. (An NYPD spokesman to residents, so Malako looked closely for clues. you live here but register your car out of state, you’re didn’t reply to requests for comment.) In addition, e windshield of a car with Texas plates displayed not only committing fraud; you’re also making although some prosperous New Yorkers register a tag from a university there that expired more than things more expensive for your neighbors.” their cars using a weekend-home address and could a year ago. Nonetheless, the state Assembly never took up a ord higher insurance bills, other drivers would “ is driver maybe doesn’t live in Texas any- the issue. Several spokespeople for the bill’s sponsors struggle to pay rising premiums if forced to register more,” Malako said. declined to comment on whether the measure will their cars here. “Cracking down on out-of-state cars On West 21st Street, he found a silver Lexus with be resurrected this year. means higher costs for people,” a state o cial said. Wisconsin plates. It was a car he had seen during Even so, Malako questioned why the Legisla- previous examinations. No easy x ture wouldn’t approve a plan that would raise reve- “ e driver doesn’t live in Wisconsin; she lives It’s easy to recognize the problem, but coming nue without increasing taxes or fees already on the in a building on this street,” Malako declared. “I’ve up with remedies is hard. It’s the New York Police books. He reckons that lawmakers are reluctant to seen her with her keys.” ■

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POSITIONS AVAILABLE PUBLIC & LEGAL NOTICES

AVP/Sr. Research Associate (Alliance- Notice of Qualification of NIMMA Thera- Notice of Qual. of Black Box Partners NOTICE OF FORMATION OF Darcy New SPV I, LLC, Auth. filed Sec’y of State Bernstein L.P. - New York, NY) Rsrch var peutics LLC. Authority filed with NY Dept. York LLC. Articles of Organization filed of State on 12/28/16. Office location: (SSNY) 6/27/16. Off. loc: NY Co. LLC with the Secretary of State of NY invstmnt vehicles to prvd fndmntl co & finan NY County. LLC formed in DE on org. in DE 6/23/16. SSNY desig. as (SSNY) on January 6, 2017. Office lo- analysis. F/T. Reqs Mast’s dgr in Econ, 12/23/16. NY Sec. of State designated agent of LLC upon whom proc. against cation: NEW YORK County. SSNY has it may be served. SSNY shall mail copy Finan, Acct’g, Int’l Rels or rel fld & 3 yrs agent of LLC upon whom process against been designated as agent upon whom it may be served and shall mail process of proc. to Att: Michael Castaldy, 551 process against it may be served. The exp in job offrd or in energy finan or cnslt’g. to: c/o CT Corporation System, 111 8th Madison Ave., NY, NY 10022. DE off. Post Office address to which the All stated exp must incl the fllw’g: oil & gas Ave., NY, NY 10011. DE address of LLC: addr.: CSC, 2711 Centerville Rd., Wil- SSNY shall mail a copy of any process ind analysis incl cmmdty supply, dmnd & c/o Corporation Trust Co., 1209 Orange mington, DE 19808. Cert. of Form. on against the LLC served upon him/her St., Wilmington, DE 19801. Cert. of file: SSDE, Townsend Bldg., Dover, DE is: 111 E 14th St, Suite 420, New pric’g; co finan mdls & proj lvl econ in both Form. filed with DE Sec. of State, 401 19901. Purp: any lawful activities. York, NY 10003 The principal busi- upstream & downstream inds; MS Excel/ Federal St., Dover, DE 19901. Purpose: ness address of the LLC is: 8490 San- Access & SAS, Matlab or eqv mdl’g sftwr; all lawful purposes. ta Monica Blvd, Suite 2, West Holly- Notice of Qualification of MIRAVAL &, dvlp’g new finan & ops metrics for cos wood, CA 90069 Purpose: any lawful GROUP, LLC Appl. for Auth. filed with act or activity. under coverage & broader macro trnds. Notice of Qualification of Convene One Secy. of State of NY (SSNY) on Must also have exp prsnt’g rsrch & rslts World Trade, LLC. Authority filed with 01/05/17. Office location: NY County. NY Dept. of State on 1/11/17. Office LLC formed in Delaware (DE) on Notice of Qualification of CS 5002 LLC on nat’l media & at ind confs. Resumes: J. location: NY County. Princ. bus. addr.: 06/01/15. Princ. office of LLC: Appl. for Auth. filed with Secy. of State Alvia, AllianceBernstein L.P., 1345 Ave of 366 Madison Ave., 7th Fl., NY, NY Miraval Group, 855 Third Ave., 9th Fl., of NY (SSNY) on 12/20/16. Office location: NY County. LLC formed in Dela- the Americas, New York, NY 10105. 10017. LLC formed in DE on NY, NY 10022. SSNY designated as 11/9/16. NY Sec. of State designat- agent of LLC upon whom process ware (DE) on 12/14/16. SSNY desig- JobID: ASR-MKA. ed agent of LLC upon whom process against it may be served. SSNY shall nated as agent of LLC upon whom proc- against it may be served and shall mail process to c/o Corporation Serv- ess against it may be served. SSNY shall mail process to the LLC, c/o Meg- Deputy General Counsel - Queens Library mail process to: c/o CT Corporation ice Co. (CSC), 80 State St., Albany, System, 111 8th Ave., NY, NY 10011, an R. Worrell, Esq., Duane Morris LLP, The Deputy General Counsel, under the NY 12207-2543. DE addr. of LLC: c/o regd. agent upon whom process may 1540 Broadway, 12th Fl., NY, NY direction of the General Counsel and CSC, 2711 Centerville Rd., Ste. 400, be served. DE addr. of LLC: 1209 Or- Wilmington, DE 19808. Cert. of Form. 10036. DE addr. of LLC: c/o Harvard Senior Vice President, provides support ange St., Wilmington, DE 19801. Cert. filed with Secy. of State, Div. of Business Services, Inc., 16192 Coast- with contract review, legal and adminis- of Form. filed with DE Sec. of State, Corps., John G. Townsend Bldg., 401 al Hwy., Lewes, DE 19958. Cert. of trative compliance and litigation matters. 401 Federal St., Dover, DE 19901. Federal St. - Ste. 4, Dover, DE 19901. Form. filed with DE Secy. of State, 401 Supports the General Counsel to approve Purpose: all lawful purposes. Purpose: Health club management. Federal St., Dover, DE 19901. Pur- contracts and ensures Library compliance pose: Any lawful activity. with applicable laws, regulations and Notice of Qualification of Centiva Capital, NOTICE OF FORMATION of M5Invest policies. Performs other duties as assigned. LP. Authority filed with NY Dept. of State The Articles of Organization of LUGAL, LLC. Art. of Org. filed with NY Secy. of More information and job requirements at on 12/14/16. Office location: NY Coun- LLC were filed with the Secretary of State (SSNY) on 12/22/16. Office loca- http://www.queenslibrary.org/services/ ty. Princ. bus. addr.: 3 Columbus Circle, State of New York on December 20, tion: NY County. SSNY designated as job-information/careers/current-openings/ Ste. 1730, NY, NY 10019. LP formed in 2016. The registered office address in agent of LLC upon whom process DE on 5/13/16. NY Sec. of State desig- New York is 16 Court Street, 14th general-counsel. against it may be served. SSNY shall nated agent of LP upon whom process Floor, Brooklyn, NY, 11241. The juris- mail copy of process to c/o CT Corpora- against it may be served and shall mail diction office location is New York Coun- tion System, 111 Eighth Avenue, NY, process to: c/o CT Corporation System, ty. The principal place of business ad- PUBLIC & LEGAL NY 10011, regd. agent upon whom 111 8th Ave., NY, NY 10011, regd. dress is 40 East 69th Street, New process may be served. Purpose: All agent upon whom process may be York, NY 10021. The Secretary of the NOTICES lawful purposes. served. DE addr. of LP: 1209 Orange St., State of New York is designated as Notice of Qual. of Axonic Special Opportu- Wilmington, DE 19801. Name/addr. of agent upon who process against Lugal, nities Series Fund GP LLC, Auth. filed genl. ptr. available from NY Sec. of Notice of Qualification of Kinder Mor- LLC may be served. The Secretary of Sec’y of State (SSNY) 7/26/16. Off. loc: State. Cert. of LP filed with DE Sec. of gan Bulk Terminals LLC. Authority filed the State of New York shall mail proc- NY Co. LLC org. in DE 7/21/16. SSNY State, 401 Federal St., Dover, DE with NY Dept. of State on ess to: Blumberg Excelsior, Inc. at 16 desig. as agent of LLC upon whom proc. 19901. Purpose: all lawful purposes. 12/29/2016. Office location: NY Coun- Court Street, 14th Floor, Brooklyn, NY, against it may be served. SSNY shall ty. Princ. bus. addr.: 1001 Louisiana 11241. Purpose: Any Lawful Purpose. mail copy of proc. to Att: Clayton St., Ste. 1000, Houston, TX 77002. Notice of Qualification of 72 MAIN DeGiacinto, 390 Park Ave., NY, NY LLC organized in LA on 7/3/1986. NY STREET ASSOCIATES LLC Notice of Qualification of Dorilton Capital 10022. DE off. addr.: CSC, 2711 Sec. of State designated agent of LLC Appl. for Auth. filed with Secy. of State Management LLC. Authority filed with NY Centerville Rd., Wilmington, DE 19808. upon whom process against it may be of NY (SSNY) on 01/19/17. Office loca- Dept. of State on 12/12/16. Office loca- Cert. of Form. on file: SSDE, Townsend served and shall mail process to: CT tion: NY County. LLC formed in Dela- tion: NY County. Princ. bus. addr.: 131 Bldg., Dover, DE 19901. Purp: any lawful Corporation System, 111 8th Ave., NY, ware (DE) on 01/18/17. Princ. office of Varick St., Ste. 911, NY, NY 10013. LLC activities. NY 10011, regd. agent upon whom LLC: 712 Fifth Ave., 30th Fl., NY, NY formed in DE on 12/7/16. NY Sec. of process may be served. LA addr. of 10019. SSNY designated as agent of State designated agent of LLC upon Notice of Qual. of Axonic Special Oppor- LLC: 3867 Plaza Tower Dr., Baton LLC upon whom process against it may whom process against it may be served tunities SBL Master Fund GP LLC, Auth. Rouge, LA 70816. Cert. of Org. filed be served. SSNY shall mail process to and shall mail process to: c/o CT Corpo- filed Sec’y of State (SSNY) 7/26/16. with LA Sec. of State, 8585 Archives c/o Corporation Service Co., 80 State ration System, 111 8th Ave., NY, NY Off. loc: NY Co. LLC org. in DE Ave., Baton Rouge, LA 70809. Pur- St., Albany, NY 12207-2543. DE addr. 10011, regd. agent upon whom process 7/21/16. SSNY desig. as agent of LLC pose: all lawful purposes. of LLC: 2711 Centerville Rd., Ste. 400, may be served. DE addr. of LLC: c/o The upon whom proc. against it may be Wilmington, DE 19808. Cert. of Form. Corporation Trust Co., 1209 Orange St., served. SSNY shall mail copy of proc. Wilmington, DE 19801. Cert. of Form. filed with Secy. of the State of DE, 401 Notice of Formation of Mad Happy LLC. to Att: Clayton DeGiacinto, 390 Park filed with DE Sec. of State, 401 Federal Federal Plaza, Ste. 1, Dover, DE Arts. of Org. filed with Secy. of State of Ave., NY, NY 10022. DE off. addr.: St., Dover, DE 19901. Purpose: all lawful 19901. Purpose: Any lawful activity. NY (SSNY) on 1/24/17. Office loca- CSC, 2711 Centerville Rd., Wilmington, purposes. DE 19808. Cert. of Form. on file: tion: NY County. SSNY designated as SSDE, Townsend Bldg., Dover, DE J-KAY ASSOCIATES LLC. Art. of Org. agent of LLC upon whom process 19901. Purp: any lawful activities. filed with the SSNY on 12/14/16. against it may be served. SSNY shall Notice of Qualification of HIGHLINE CAP- Office:New York County. SSNY designat- mail process to: The LLC, 8360 ITAL MANAGEMENT, L.P. Appl. for Auth. Notice of Formation of Capital District ed as agent of the LLC upon whom Melrose Ave., Ste. 105, Los Angeles, filed with Secy. of State of NY (SSNY) Management LLC. Arts. of Org. filed process against it may be served. CA 90069. Purpose: any lawful activity. on 12/19/16. Office location: NY Coun- with NY Dept. of State on 12/16/16. SSNY shall mail copy of process to the ty. LP formed in Delaware (DE) on Office location: NY County. Sec. of LLC, c/o Morici & Morici, LLP, 600 02/19/97. Princ. office of LP: One State designated agent of LLC upon Third Avenue, 15th Floor, New York, NY Notice of Formation of JULIA HAART Rockefeller Plaza, 30th Fl., NY, NY whom process against it may be served 10016. Purpose: Any lawful purpose. HOLDINGS, LLC Arts. of Org. filed with 10020. SSNY designated as agent of and shall mail process to: Capital Dis- Secy. of State of NY (SSNY) on LP upon whom process against it may trict Management LLC, 641 Lexington 12/22/16. Office location: NY County. be served. SSNY shall mail process to Ave., 15th Fl., NY, NY 10022, principal Notice of Formation of CAPTAINS LANE Princ. office of LLC: 54 W. 40th St., c/o Corporation Service Co., 80 State business address. Purpose: all lawful LLC Arts. of Org. filed with Secy. of NY, NY 10010. SSNY designated as St., Albany, NY 12207-2543. Name purposes. State of NY (SSNY) on 12/13/16. Of- agent of LLC upon whom process and addr. of each general partner are fice location: NY County. SSNY desig- against it may be served. Original addr. available from SSNY. DE addr. of LP: Notice is hereby given that a license, nated as agent of LLC upon whom proc- of process was 25 W. 17th St., Ste. 2711 Centerville Rd., Ste. 400, Wil- Ser No.1299644, has been applied for ess against it may be served. SSNY 502, NY, NY 10011; however, as mington, DE 19808. Cert. of LP filed by KOK9 LLC, to sell wine and beer at shall mail process to c/o Steven amended by Cert. of Correction filed with Secy. of State, Div. of Corps., John retail in a restaurant under the ABC Moskowitz, Esq., Stroock & Stroock & with SSNY on 01/04/17, SSNY shall G. Townsend Bldg., 401 Federal St., Law at 790 9th Avenue, New York, NY Lavan LLP, 180 Maiden Ln., NY, NY mail process to 26 W. 17th St., NY, NY Ste. 4, Dover, DE 19901. Purpose: 10019 for on-premises consumption 10038. Purpose: Any lawful activity. 10011. Purpose: Any lawful activity. Any lawful activity.

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PUBLIC & LEGAL NOTICES

Notice of Qualification of PINZ CAPITAL Notice of Qual. of Axonic Special Oppor- Notice of Qualification of AIF IX MAN- Notice of Qualification of NY AT HEART MANAGEMENT, LP Appl. for Auth. filed tunities Series Fund, LP, Auth. filed AGEMENT, LLC Appl. for Auth. filed with LLC Appl. for Auth. filed with Secy. of with Secy. of State of NY (SSNY) on Sec’y of State (SSNY) 7/26/16. Off. Secy. of State of NY (SSNY) on State of NY (SSNY) on 01/04/17. Of- 12/21/16. Office location: NY County. loc: NY Co. LP org. in DE 7/21/16. 01/19/17. Office location: NY County. fice location: NY County. LLC formed in LP formed in Delaware (DE) on SSNY desig. as agent of LP upon whom LLC formed in Delaware (DE) on Delaware (DE) on 12/27/16. SSNY 12/05/16. SSNY designated as agent proc. against it may be served. SSNY 12/13/16. SSNY designated as agent designated as agent of LLC upon whom of LP upon whom process against it shall mail copy of proc. to Att: Clayton of LLC upon whom process against it process against it may be served. may be served. SSNY shall mail proc- DeGiacinto, 390 Park Ave., NY, NY may be served. SSNY shall mail proc- SSNY shall mail process to c/o ICONIQ ess to the Partnership, 135 E. 57th 10022. DE off. addr.: CSC, 2711 ess to the LLC, Attn: John J. Suydam, 9 Capital, 15 E. 26th St., Ste. 602, NY, St., 24th Fl., NY, NY 10022. Name and Centerville Rd., Wilmington, DE 19808. W. 57th St., 43rd Fl., NY, NY 10019. NY 10010. DE addr. of LLC: c/o Corpo- addr. of each general partner are availa- Cert. of LP on file: SSDE, Townsend DE addr. of LLC: c/o Corporation Serv- ration Service Co., 2711 Centerville ble from SSNY. DE addr. of LP: c/o Cor- Bldg., Dover, DE 19901. Name/addr. ice Co., 2711 Centerville Rd., Ste. Rd., Ste. 400, Wilmington, DE 19808. poration Service Co., 2711 Centerville of each gen. ptr. avail. at SSNY. Purp: 400, Wilmington, DE 19808. Cert. of Cert. of Form. filed with DE Secy. of the Rd., Ste. 400, Wilmington, DE 19808. any lawful activities. Form. filed with The Secy. of State of State, Div. of Corps., John G. Town- Cert. of LP filed with Secy. of State of the State of DE, Dept. of State, Div. of send Bldg., 401 Federal St. - Ste. 4, Do- DE, Dept. of State, Div. of Corps., John Corps., John G. Townsend Bldg., 401 ver, DE 19901. Purpose: Any lawful ac- Notice of Qualification of Maverick Lien Townsend Bldg., Dover, DE 19901. Federal St., Ste. 4, Dover, DE 19901. tivity. Fund IV LP. Authority filed with NY Dept. Purpose: Any lawful activity. Purpose: Any lawful activity. of State on 11/10/16. Office location: NY County. LP formed in DE on Notice of Qualification of Thor ASB Notice of Qualification of CORIGIN MAN- 9/15/16. NY Sec. of State designated Notice of Qualification of Convene Park 155 Mercer LLC. Authority filed with HATTAN APARTMENTS II LLC agent of LP upon whom process Avenue Tower W5, LLC. Authority filed NY Dept. of State on 10/19/16. Of- Appl. for Auth. filed with Secy. of State against it may be served and shall mail with NY Dept. of State on 1/11/17. Of- fice location: NY County. Princ. bus. of NY (SSNY) on 12/15/16. Office loca- process to: c/o Maverick Real Estate fice location: NY County. Princ. bus. addr.: 7501 Wisconsin Ave., Bethes- tion: NY County. LLC formed in Dela- Partners LLC, 315 Madison Ave., 3rd addr.: 366 Madison Ave., 7th Fl., NY, da, MD 20814. LLC formed in DE on ware (DE) on 12/14/16. Princ. office of Fl., NY, NY 10017, principal business NY 10017. LLC formed in DE on 10/17/16. NY Sec. of State designat- LLC: c/o CORIGIN, Attn: Spencer address. DE address of LP: 1209 Or- 7/6/16. NY Sec. of State designated ed agent of LLC upon whom process Romoff, 505 Fifth Ave., 22nd Fl., NY, ange St., Wilmington, DE 19801. agent of LLC upon whom process against it may be served and shall NY 10017. SSNY designated as agent Name/address of genl. ptr. available against it may be served and shall mail mail process to: c/o CT Corporation of LLC upon whom process against it from NY Sec. of State. Cert. of LP filed process to: c/o CT Corporation System, System, 111 8th Ave., NY, NY 10011, may be served. SSNY shall mail proc- with DE Sec. of State, 401 Federal St., 111 8th Ave., NY, NY 10011, regd. regd. agent upon whom process may ess to the LLC at the addr. of its princ. Dover, DE 19901. Purpose: all lawful agent upon whom process may be be served. DE addr. of LLC: The Corpo- office. DE addr. of LLC: c/o Corporation purposes. served. DE addr. of LLC: 1209 Orange ration Trust Co., 1209 Orange St., Wil- Service Co., 2711 Centerville Rd., Ste. St., Wilmington, DE 19801. Cert. of mington, DE 19801. Cert. of Form. 400, Wilmington, DE 19808. Cert. of Form. filed with DE Sec. of State, 401 filed with DE Sec. of State, 401 Feder- Form. filed with Secy. of the State of Notice of Qualification of Mobius Staff- Federal St., Dover, DE 19901. Pur- al St., Dover, DE 19901. Purpose: all DE, Corp. Dept., Loockerman & Federal ing Services, LLC. Authority filed with pose: all lawful purposes. lawful purposes. Sts., Dover, DE 19901. Purpose: Any NY Dept. of State on 12/16/16. Office lawful activity. location: NY County. LLC formed in AK Notice of Formation of C.C. Zeus 211, on 6/3/16. NY Sec. of State designat- L.L.C. Arts. of Org. filed with NY Dept. ed agent of LLC upon whom process of State on 12/13/16. Office location: Notice of Formation of Bridgeview 126 against it may be served and shall mail NY County. Princ. bus. addr.: 211 E. LLC. Arts of Org Filed with Secy. of process to: c/o CT Corporation System, 70th, #20-A, NY, NY 10021. Sec. of State of NY(SSNY) on 1/3/2017. Of- 111 8th Ave., NY, NY 10011, regd. State designated agent of LLC upon fice Location: NY County. SSNY desig- agent upon whom process may be whom process against it may be nated agent upon whom process may served. AK and principal business ad- served and shall mail process to: CT be served and shall mail copy of proc- dress: 11001 O’Malley Centre Dr., Ste. Corporation System, 111 8th Ave., ess against LLC to principal business 105, Anchorage, AK 99515. Cert. of NY, NY 10011, regd. agent upon address: 41 Elizabeth St., Ste. 505, Form. filed with Commissioner, 333 Wil- whom process may be served. Pur- NY, NY 10013 Purpose: any lawful act. loughby Ave., 9th Fl., Juneau, AK pose: all lawful purposes. 99811. Purpose: all lawful purposes. Notice of formation of US MARSHALL Notice of Formation of DDCM 104-106 LLC. Art. Of Org. filed w. Secy of State OLDETOWNEHOUSE LLC. App. for Auth. DELANCEY LLC Arts. of Org. filed with of NY (SSNY) on 12/30/2016. Office filed with the SSNY on 12/14/16. Secy. of State of NY (SSNY) on Loc: New York County. SSNY designat- Originally filed with Secretary of State 01/26/17. Office location: NY County. ed as agent of LLC upon whom process of Delaware on 12/09/2016. Office: SSNY designated as agent of LLC upon against it may be served. SSNY shall New York County. SSNY designated as whom process against it may be mail copy of process to: US MARSHALL agent of the LLC upon whom process served. SSNY shall mail process to LLC, 17 Stuyvesant Oval, New York, NY against it may be served. SSNY shall Maurice Kassimir & Associates, P.C., 10009. Purpose: Any lawful activity. mail copy of process to the LLC, c/o Jill 1375 Broadway - Fl. 23, NY, NY Allegretti, Morici & Morici LLP, 600 10018. Purpose: Any lawful activity. Notice of Formation of M. STAROVIC Third Avenue, 15th Floor, New York, NY Notice of Qualification of Emergent IV, PSYCHIATRY, MD, PLLC 10016. Purpose: Any lawful purpose. LLC. Authority filed with NY Dept. of Arts. of Org. filed with Secy. of State of State on 12/30/16. Office location: NY NY (SSNY) on 10/14/16. Office loca- Notice of Qualification of Christina Real- County. LLC formed in TX on tion: NY County. SSNY designated as ty II LLC. Authority filed with NY Dept. 12/30/13. NY Sec. of State designat- agent of PLLC upon whom process of State on 12/9/16. Office location: ed agent of LLC upon whom process against it may be served. SSNY shall NY County. LLC formed in DE on against it may be served and shall mail mail process to Corporation Service 12/7/16. NY Sec. of State designated process to: c/o CT Corporation System, Co., 80 State St., Albany, NY 12207- agent of LLC upon whom process 111 8th Ave., 13th Fl., NY, NY 10011, 2543. Purpose: Any lawful activity. against it may be served and shall mail regd. agent upon whom process may process to: American Continental Prop- be served. TX and principal business Notice of Formation of Warren Street erties, LLC, 460 Park Ave., 11th Fl., address: 100 Commercial Circle, Bldg. Advisors, LLC. Arts. of Org. filed with NY, NY 10022, principal business ad- B, Conroe, TX 77304. Cert. of Form. Secy. of State of NY (SSNY) on dress. DE address of LLC: 1209 Or- filed with TX Sec. of State, 1019 1/23/17. Office location: NY County. ange St., Wilmington, DE 19801. Cert. Brazos, Austin, TX 78701. Purpose: all SSNY designated as agent of LLC upon of Form. filed with DE Sec. of State, lawful purposes. whom process against it may be 401 Federal St., Dover, DE 19901. Pur- served. SSNY shall mail process to: 38 pose: all lawful purposes. Warren St., Apt. 8B, NY, NY 10007. Notice of Qualification of Atlas Inves- Purpose: any lawful activity. ting LLC. Authority filed with Secy. of Notice of Formation of CGRAMSEY State of NY (SSNY) on 12/5/2016. Of- HOLDINGS LLC Arts. of Org. filed with fice location: NY County. LLC formed in NOTICE OF FORMATION of Quantized Secy. of State of NY (SSNY) on DE on 6/23/2014. SSNY designated Mind LLC. Arts of Org filed with Secy. of 01/24/17. Office location: NY County. agent upon whom process may be State of NY (SSNY) on 1/5/2017. Of- Princ. office of LLC: 53 N. Moore St., served and shall mail copy of process fice location: NY County. SSNY desig- Apt. 2F, NY, NY 10013. SSNY designat- against LLC to principal business ad- nated agent upon whom process may ed as agent of LLC upon whom process dress: 50 Riverside Blvd, 14N, New be served and shall mail copy of proc- against it may be served. SSNY shall York, NY 10069. Certificate of LLC filed ess against LLC to principal business mail process to Patrick Ramsey at the with Secy. of State of DE located at: address: 199 E 7th St., #1B, NY, NY princ. office of the LLC. Purpose: Any 401 Federal St. Dover, DE 19901. Pur- 10009. Purpose: any lawful act. lawful activity. pose: any lawful act.

FEBRUARY 6, 2017 | CRAIN’S NEW YORK BUSINESS | 23

P022-23_CN_20170206.indd 23 2/2/2017 6:08:54 PM GOTHAM GIGS

ROCK CANDY: Each piece Kassam designs is a reflec- tion of the person who wears it.

Bling bearer A designer of high-end engagement rings says he’s just a storyteller at heart

ou could say Zameer Kassam, CEO and chief Now, having designed 1,000 works of bespoke jewelry designer of five-year-old firm Zameer Kassam from his Midtown studio, the self-confessed romantic has Fine Jewelry, did it all for love. honed what he calls his storytelling technique. “The only It was 2008 and Kassam, then head of De thing we do is create pieces that tell love stories,” he said. ZAMEER KASSAM YBeers’ bridal department in London, was struck by the Kassam or a staffer will fly or call all over the world to fact that on any given day, hundreds of women worldwide interview clients, usually millennial men in finance or tech- AGE 37 receive identical Tiffany diamond engage- nology who can afford at least $10,000 for a BORN Vancouver, British Columbia The only ment rings. Kassam, a former McKinsey & “ ring. (The average price of his custom rings is RESIDES Midtown Co. analyst with a Harvard M.B.A., was on a $30,000; one cost $1.5 million. All are set with thing we do EDUCATION Bachelor’s, Ivey Busi- path to becoming a chief product officer, but is create De Beers’ Forevermark diamonds and hand- ness School, Western University; the idea of selling what felt like a commodi- crafted in Manhattan by a team of about 15.) pieces that M.B.A., Harvard Business School ty to customers he’d never met left him feel- During an interview, Kassam draws out stories FIRST IN CLASS He is the young- ing hollow. He quit shortly after and moved tell love about the moment a man knew his girlfriend est of four brothers and the first in to New York City with no income and around stories was “the one” and places or things that hold his family to graduate from college. $150,000 in outstanding student loans. Ser- ” meaning. Then he gathers symbols—the spire COUCH SURFER When Kassam endipitously, a friend asked Kassam’s advice on buying an of a church, the logo of a favorite restaurant—and sketch- arrived in New York, four friends let engagement ring—which then led to his asking Kassam to es ideas for incorporating them into each ring’s design. For him share their one-bathroom apartment, located above an East Village design it. His fledgling attempt was so successful that other one ring, the prongs holding the diamond in place were hookah bar, for seven months. requests followed. Soon he knew that designing jewelry, not made to resemble antlers, evoking the American South- B-SCHOOL EPIPHANY Kassam just selling it, was what he wanted to do. west. For another, the number of accent stones equaled the was pressed by a professor, Robert In a way Kassam had come full circle. His parents, who number of years the couple had been together. Kaplan, now head of the Federal fled East Africa and emigrated to Canada, started Shamin The process creates a singular bond. “I personally in- Reserve Bank of Dallas, to declare Jewellers in Vancouver, eventually expanding to five stores. teract with each client and design every piece,” said Kas- his dream job. “I said, ‘luxury retail,’ but he kept pushing until I blurted He and his three brothers grew up working in the business. sam, who is single. “The clients and their stories become out, ‘a jeweler.’ ”

BUCK ENNIS “Instead of the playground, I played at the mall,” he said. part of my own story.” — JEANHEE KIM

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

P024_CN_20170206.indd 24 2/3/17 7:20 PM SNAPS

Menswear makes its mark Most people know Michael Strahan as a former football great turned Good Morning America co-host. However, he is also a style maven who started a men’s line in 2015. The line, available at JCPenney, was expanded last year. Last month he was among those honored at the YMA Fashion Scholarship Fund dinner, which raised more than $3.5 million for the nonprofit organization’s endowment and educational programs.

Michael Strahan with JCPenney’s Douglas Evans, executive director of the YMA Fashion Scholar- Marvin Ellison, CEO, and John Tighe, ship Fund, and Martha Stewart at the Jan. 12 fundraiser. chief merchant and executive vice president, who was also honored, at the event at the Grand Hyatt New York.

Real estate stars saluted

Fun(d) for the whole family

The DiMenna Children’s History Museum at the New-York Historical Society held its fifth annual family fundraiser Jan. 21. Among those at the party, which celebrated founding father The Real Estate Board of New York held its annual banquet Jan. 19 to salute the Alexander Hamilton, were industry’s stars. Among the seven honorees was MaryAnne Gilmartin, president Louise Mirrer, president and and chief executive of Forest City Ratner Cos., who is shown here with Alicia Glen, chief executive of the historical deputy mayor for housing and economic development, and Mary Ann Tighe, society, and museum founder chief executive of CBRE’s tristate region. Diana DiMenna.

Robert Balachandran, president of BellRow Title Agency; Richard White, deputy commissioner and head of the Tenant Protection Unit Event chairs at the state’s Homes and Larry Neubauer, Community Renewal partner at Quilvest agency; and Gregory Private Equity, and Smiley, director of his wife, Jillian, intergovernmental brought daughters affairs for Sen. Kirsten Riley, Scarlet Gillibrand, attended the and Piper to REBNY gala at the New the event, which York Hilton Midtown. raised more

LYN HUGHES, PATRICK MCMULLAN, BUCK ENNIS HUGHES, PATRICK LYN than $200,000.

SEE MORE OF THIS WEEK’S SNAPS ONLINE AT CRAINSNEWYORK.COM/SNAPS. GET YOUR GALA IN SNAPS. EMAIL THERESA AGOVINO: [email protected].

February 6, 2017 | CRAIN’S NEW YORK BUSINESS | 25

P025_CN_20170206.indd 25 2/3/2017 10:21:13 AM FOR THE RECORD*

NEW IN TOWN REAL ESTATE furniture wholesaler and cites estimated assets of ■ FPF Restaurant Inc., on Jan. 17. The filing cites distributor is relocating $1,000,001 to $10 million 230 E. 44th St. estimated assets of $0 to ■ Burgrito’s COMMERCIAL its warehousing and and estimated liabilities of FPF filed for Chapter 11 $50,000 and estimated lia- 173 Fourth Ave., Brooklyn ■ Bed Bath & Beyond signed distribution operation to $500,001 to $1 million. bankruptcy on Jan. 17. The bilities of $1,000,001 to $10 The Bethpage, L.I., eatery a 10-year lease for 27,778 the Woodside neighbor- filing cites estimated assets million. The creditors with opened a Park Slope square feet at 250 Hudson hood from Greenpoint, ■ Color Resources Center of $1,000,001 to $10 million the largest unsecured claims location. Its signature St. The retailer’s design and Brooklyn. Asking rent was Inc., 20 W. 22nd St. and estimated liabilities of are Roofers Local Union Burgrito is a cheeseburger photo studio will occupy $18 per square foot. The Color Resources Center $500,001 to $1 million. No. 8, owed $606,395.76; with chipotle sauce and the the entire 11th floor of the tenant was represented filed for Chapter 11 the Internal Revenue works wrapped in a flour Hudson Square building this by Harvest International; bankruptcy on Jan. 11. The ■ Telentos Construction Service, owed $597,834.52; tortilla. There is also a summer. Its subsidiary, One the building’s owner, filing cites estimated assets Corp., 56 Sands St., and the New York state meat-free Veg-rito. Kings Lane, signed a 10-year RHK & Associates, was of $50,001 to $100,000 Staten Island Department of Labor’s lease for 51,576 square feet represented by Kalmon and estimated liabilities of The company filed for Bureau of Public Work, ■ Simon Indian Palace at 315 Hudson St. In 2018 Dolgin Affiliates. $100,001 to $500,000. Chapter 11 bankruptcy owed $330,000. ■ 230 E. 58th St. it will relocate its design and The Midtown Indian photo studio from the eighth RETAIL restaurant has a broad floor of the building to the ■ Ascot Properties has vegetarian and non- entire fourth floor. Asking purchased 682 Broadway DEALS ROUNDUP vegetarian regional menu rents at both buildings are from Premier Equities for TRANSACTION SIZE BUYERS/ and a weekday lunch buffet. between $75 and $90 per $10 million. The corner TARGET/SELLERS [IN MILLIONS] INVESTORS TRANSACTION TYPE square foot. The tenants retail space of the NoHo ■ Until Tomorrow were represented by Douglas building at Great Jones Actelion Ltd./Bellevue Asset 29,020.35 Johnson & Johnson SB M&A 507 Myrtle Ave., Brooklyn Elliman. The buildings’ Street encompasses 1,400 Management AG; BlackRock Inc. The new bar in the Clinton owner, Jack Resnick & Sons, square feet on the ground (Manhattan); HBM Partners Ltd. Hill–Fort Greene neighbor- was represented in-house for floor, 400 square feet in AppDynamics Inc./Adage Capital 4,032.75 Cisco Systems Inc. SB M&A hood strives for a relaxed, the 250 Hudson St. deal and the basement and 50 feet Management LP; Altimeter Capital Management LP; Battery Ventures; casual vibe in its decor and by Newmark Grubb Knight of frontage—all currently ClearBridge Investments LLC (Manhattan); cocktails and bar menu. The Frank for 315 Hudson St. leased long-term to Cross Creek Advisors; General Atlantic LLC bar can seat 30 patrons, plus GNC. The owner was (Manhattan); Goldman Sachs Group, Merchant Banking Division (Manhattan); 30 more in the backyard ■ Book publisher Abrams represented by RKF; Greylock Partners; Industry Ventures LLC; when weather permits. has signed a 15-year lease Marshall Real Estate Institutional Venture Partners; Kleiner Perkins 195 Broadway Caufield & Byers; Lightspeed Venture at , AT&T’s represented the buyer. Partners; Sands Capital Management LLC; ■ Verts Mediterranean former 41,982-square-foot SP Investments Management LLC; SVB Grill world headquarters. L&L ■ The Plaza’s Caudalie Silicon Valley Bank, Investment Arm 24 E. 23rd St. Holding Co., the building’s Vinotherapie Spa has signed Multi Packaging Solutions 2,307.18 WestRock Co. SB M&A The fast-casual chain, with owner, represented itself. a 10-year lease for 1,620 International Ltd. (Manhattan)/ Madison Dearborn Partners LLC; a menu of pitas, salads, Cushman & Wakefield square feet at Friedland The Carlyle Group LP rice bowls and grain bowls, represented the tenant. The Properties’ 819 Madison breaks into the New York asking rent was $59 per Ave. Cushman & Wakefield BNC Bancorp/Aquiline Capital 1,764.01 Pinnacle Financial SB M&A Partners LLC (Manhattan); Partners Inc. City market with this square foot. Abrams will arranged the deal. Forest Hill Capital LLC Flatiron District location. relocate its staff from 60 Wall Street/Morgan Stanley Real 1,040.31 GIC Pte. Ltd.; Paramount SB M&A ■ 115 W. 18th St. in the Dita, a California luxury Estate Investing (Manhattan) Group Inc. (Manhattan) third quarter. eyewear company, signed a NES Rentals Holdings Inc./ 965 United Rentals SB M&A COMPANY MOVES lease for 800 square feet at Diamond Castle Holdings LLC (North America) Inc. ■ Crossix, a health care 944 Madison Ave., where (Manhattan) ■ Creamline and media analytics it plans to open its second Halcón Resources Corp. 400.06 Alyeska Investment Group GCI 180 Seventh Ave. company, has signed a New York City store in the LP; Anchorage Capital Group The “farm to tray,” fast- lease for 28,000 square feet spring. The new store will LLC (Manhattan); Ares 1375 Broadway Management LLC; Arosa Capital casual comfort-food at . The occupy 600 square feet on Management LP (Manhattan); restaurant in Chelsea Schoen Group represented the ground floor and 200 AST Investment Services Inc.; Market opened its first Crossix; CBRE represented square feet on the lower Balyasny Asset Management LP; BlackRock Financial Management 18-seat, standalone eatery, the landlord, Westbrook level. RKF represented Inc. (Manhattan); BlackRock in Chelsea. Partners. The asking rent Dita in the transaction; the Institutional Trust Co. N.A.; was in the mid-$60s per landlord, 14 E. 75th St. Inc., BlackRock Inc. (Manhattan); Boston Partners Global Investors ■ Orangetheory Fitness square foot. was represented by CBRE. Inc. (Manhattan); Brigade 51 Astor Place Capital Management LLC (Manhattan); CVI Investments Inc.; Encompass Capital ■ MULTIFAMILY The Fort Lauderdale, Law firm Roberts & Partners LLC; Hartree Partners LP Fla.–based fitness franchise Holland has signed a ■ West End Manor has (Manhattan); Hudson Bay Capital opened its first corporate- 15-year lease for 27,000 sold 315-317 W. 102nd Management LP (Manhattan); Luminus Management LLC (Manhattan); Metlife owned outpost in New York square feet at 1675 St. for $23.5 million. Advisers LLC; MSD Partners LP City. In addition to this Broadway, at West 52nd The 36,000-square-foot, (Manhattan); MTP Energy Management LLC; Prudential Investments LLC; SSF III East Village location, the Street. The lease, which 9-story prewar apartment Halcón AIV 1 LP; SSF III company franchised four extends until 2032, building, which is located Halcón AIV B1 LP; TC Five Limited; other locations in Brooklyn encompasses the building’s between West End Avenue Third Point Loan LLC (Manhattan); Tortoise Capital Advisors LLC; and Manhattan. 17th floor. The firm plans and Riverside Drive, Tyrus Capital LLP; UBS O’Connor LLC to relocate from its current was purchased by an offices at Worldwide Plaza undisclosed private investor. Selected deals announced for the week ending Jan. 27 involving companies in metro MERGERS/ACQUISITIONS during the third quarter. Cushman & Wakefield New York. SB M&A: Strategic-buyer M&A represents a minority or majority acquisition of existing CBRE represented the represented both the buyer shares of a company without the participation of a financial buyer. GCI: Growth capital investment represents new money invested in a company for a minority stake. ■ An investment group tenant; the landlord, and the seller. SOURCE: CAPITALIQ led by New York private- the Rudin family, was equity firm Falconhead represented by its Rudin Capital and Virginia-based Management Co. The asking BANKRUPTCIES GET YOUR NEWS ON THE RECORD * M3 Outdoor Investments rent was $75 per square foot. ABOUTTo submit companyTHIS SECTION openings, moves, mergers and acquisitions, and real estate deals, or to acquired Kwik Tek Inc., a ■ Autorama Enterprises receive further information, email [email protected]. designer and supplier of ■ Bobphil d/b/a Liform Inc., 935 Garrison Ave., For the Record is a listing to help businesspeople in New York find opportunities, potential outdoor sports–branded Imports signed a five- Bronx new clients and updates on customers. Real estate listings are provided in order of square products that is located in year lease for 18,350 The company filed for footage. Bankruptcy filings from the eastern and southern districts of New York are listed Denver. Terms of the deal square feet at 58-25 52nd Chapter 11 bankruptcy alphabetically. were not disclosed. Ave. in Queens. The on Jan. 11. The filing

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

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Demolition, deconstructed he death of one building brings the birth of another. As New York underwent Ta wave of construction through 2016, buildings on the other end of their life span were being demolished at the same frenetic pace. The city issued 2,152 demolition permits last year, an increase of 83% from the number of teardowns approved in 2012. The bulk of those demolitions were in Brooklyn, where median home prices hit a record high of $750,000 in the fourth quarter, according to real estate brokerage Douglas Elliman, as available inventory dropped 31% from the same period a year before. Around the city, debris from construction and demolition accounts for more than 60% of the solid-waste stream, according to the Department of Sanita- tion. But some of the material, including concrete, brick and salvaged wood, is reused in new construction. — PETER D’AMATO BUCK ENNIS

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

P027_CN_20170206.indd 27 2/3/17 7:20 PM ONE OF THE LARGEST MULTIFAMILY DEALS IN 2016: THE EAST SIDE 47 PORTFOLIO SOLD BY ARIEL PROPERTY ADVISORS

47 713K 1,181 $357,500,000 Properties Gross Square Feet Units Closed December 2016

The East Side 47 Portfolio is a package of 46 buildings located throughout Northern Manhattan’s neighborhood of East Harlem and 4 retail & 3 residential condominium units in the East Village.

Investment Sales arielpa.nyc Capital Services 212.544.9500 Investment Research

CN018160.indd 1 2/2/17 12:01 PM