20120917-NEWS--0001-NAT-CCI-CN_-- 9/14/2012 7:55 PM Page 1

FRUIT FLY HE TRAVELED THE GLOBE FOR THE BEST PICKINGS CRAIN’S® PAGE 8 NEW YORK BUSINESS

VOL. XXVIII, NO. 38 WWW.CRAINSNEWYORK.COM SEPTEMBER 17-23, 2012 PRICE: $3.00 Suitors line aisles of Food Emporium

The sale of A&P’s ‘crown jewel’ may be as much about real estate as arugula

BY LISA FICKENSCHER

For the second time in two years, the Food Emporium chain of supermar- kets,owned by the Great Atlantic & Pa- cific Tea Co.,is on the block—and there is no shortage of interested buyers. The 17-store chain controls attrac- tive real estate in Manhattan at a time ADVISE AND when many grocers—including Fair- CONTEMPT: David Lichtenstein insists way Market, Balducci’s, Trader Joe’s in a lawsuit he was ill and Whole Foods, served by his lawyers as well as discount SALE! and bankers. clothing retailers and drugstores— are expanding. 16 But there are FOOD EMPORIUMS several suitors who in Manhattan were stand out: Chris- put on the block by tian Haub, former Montvale, N.J.- chairman,chief ex- based A&P ecutive and major shareholder of the Montvale, N.J.- AVERAGE$250K WEEKLY based company revenue per store, known as A&P, according to ‘The mark’ and Gristedes industry experts owner John Catsi- matidis, who said he was close to ac- Three years after his $8B bet on Extended Stay landed the chain quiring Food Emporium in 2010, shortly before its parent filed for bank- in bankruptcy, David Lichtenstein wants his reputation back ruptcy protection and called off the sale. Mr. Catsimatidis has already redux signed a confidentiality agreement with A&P that prevents him from dis- BY AARON ELSTEIN ping malls,not to mention 18,000 apart- about Extended Stay’s bankruptcy. cussing Food Emporium, he said. ments spread across 27 states. But when Critics describe the suit as a desper- Mr. Haub, who runs a Greenwich, In 2007, fast-rising financier David Extended Stay went bust just two years ate Hail Mary heave, and Willkie Farr Conn.-based investment firm, Emil Capital Partners, initiated discussions Lichtenstein snapped up the Extended later, Mr. Lichtenstein not only lost last month moved for a dismissal. But a with A&P executives during Labor Stay Inc. hotel chain for $8 billion, se- $300 million, he also lost his reputation. raft of documents from the suit and oth- Day week, when the company told its curing his status as one of the nation’s Now the Manhattan-based real es- er litigation related to the Extended employees that Food Emporium was largest private landlords. His sprawling tate investor is suing to get it back, Stay fiasco is laying bare the knotty de- for sale. “We are very familiar with those empire encompassed 30 million square blaming his lawyers at Willkie Farr & tails of the deal culture that made the stores and how to make them success- feet worth of office buildings and shop- Gallagher for giving him bad advice See INVESTOR on Page 22 ful,”said Mr.Haub,who stepped down as chairman of A&P in March. Ten- gelmann Group, the German retailing MORE REAL ESTATE Condo prices conglomerate controlled by the Haub family, had been A&P’s largest share- pick up pop: P. 3. Landlords holder since 1979, but it sold its shares ELECTRONIC EDITION this year,Mr.Haub said,after the com- aim small to fill offices: P. 13 pany came out of bankruptcy. See FOOD EMPORIUM on Page 23 NEWSPAPER 20120917-NEWS--0002-NAT-CCI-CN_-- 9/14/2012 7:55 PM Page 1

STATS AND THE CITY

THE CONTROVERSIAL SODA BAN became official last week, when the NYC Board of Health prohibited big, sugary drinks at movie theaters, delis, stadiums and restaurants. The rule takes effect in March. FYICRAINSNEWYORK.COM 16 oz. Biggest sugary soda OK’d under new law 54 oz. Regal Cinemas’ largest soda as of mid-September Ben Bernanke 85¢ pumps up housing Rough profit on each dollar of sales at movie concession stands ingo! The head of the nation’s can- do fourth branch of government $200 has decreed that there shall be Fine for violating the soda ban B more jobs and so shall it be—for the 200 foreseeable future. Calories in a 16-oz. Pepsi, 20% less than in 20 oz. Federal Reserve Chairman Ben 12% Bernanke surprised everybody last week NYC high-school students who are obese by announcing he is now determined to boost jobs.To do that, the Fed will pump bloomberg newsbloomberg Sources: City of New York, PepsiCo Inc., Morningstar, Centers for up what is arguably the most productive istockphoto Disease Control and Prevention, Center for Science in the Public Interest jobs engine we’ve got—the housing market, which benefits everybody from movers and carpet- makers to homeowners and, of course, home lenders. BROADWAY FINDS MUCH TO APPLAUD The Fed’s plan to soak up $40 billion worth of mortgages each month will lower mortgage Growth in ticket revenue on Broadway has been strong since April, including a surprise jump in June. rates, help increase the availability of home loans, and likely lift home prices in the bargain. Wealthier, more confident homeowners, in turn, are just the sort of people who are more inclined 17.3% Change, y-o-y to kick up their heels at the local restaurant, jewelry store or maybe the Ford dealership. Does the Fed’s strategy carry risks—especially with regard to its former north star, inflation?

9.3% Yes, absolutely. Can Mr. Bernanke shield America from the fallout of Europe’s economic crisis or 8.1% 7.3% 7.8% even the slowdown in China? Don’t be absurd. But do enjoy the party while it lasts. —erik ipsen 4.5%

4/1/12 5/6/12 6/3/12 7/1/12 8/5/12 9/2/12 TARNISHED SILVER. Under pressure that it doesn’t already own. The deal Source: The Broadway League from Gov.Andrew Cuomo,the state’s will value the legendary retail broker- HOORAY! fledgling Joint Commission on Pub- age at $13.5 billion. That’s hefty, but ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY THE lic Ethics has decided to broaden its it’s a far cry from the $23 billion value TREASURY investigation into the sexual-harass- Citi had put on it. In a hopeful and sold $18 ment scandal involving Brooklyn’s telling sign, the news lifted shares of billion worth of its shares in THIS WEEK IN CRAIN’S Democratic Party boss, Assembly- both companies—Morgan Stanley’s AIG and man Vito Lopez. Also now officially more so. ... BETTER LATE THAN NEVER. actually made IN THE BOROUGHS------3 under scrutiny is powerful Assembly Finally, city and state officials have a profit. Speaker Sheldon Silver, who is facing reached an agreement that will allow istockphoto IN THE MARKETS------4 mounting fire for having made tax- the Port Authority of New York and THE INSIDER ------6 payer-funded payments of $103,000 New Jersey to resume long-stalled OY VEY! to two of Mr. Lopez’s accusers. Re- construction on the 9/11 museum. BUSINESS PEOPLE ------8 publicans hope to turn the scandal The agreement cut through the knot METROCARD discounts may follow the 9 train into the history books. OPINION ------10 into an election issue. ... PUBLIC- that resulted from years of wrangling PRIVATE SCIENCE PROJECT. Memorial among various public entities and the GREG DAVID------11 Sloan-Kettering private National Sep- SMALL BUSINESS------12 Cancer Center and tember 11 Memorial the City University of ‘We turn away & Museum founda- REPORT: REAL ESTATE------13 New York are joining thousands of tion, and it set a THE LIST ------15 forces on East 73rd framework to speed Street. The duo is people every future agreements. REAL ESTATE DEALS------16 paying $215 million Monday’ The project still needs newsbloomberg FOR THE RECORD------17 for a city-owned site $300 million, as well NEW YORK, NEW YORK —Thomas Campbell, that once housed a as help with its oper- bell told The New York Times, in ex- Chef Simone Apostoli’s CLASSIFIEDS ------20 director, Metropolitan Sanitation Depart- Museum of Art, on the ating budget, but all plaining why he is proposing a seven- Bowery Kitchen offers SOURCE LUNCH------26 ment garage. Sloan- Met’s proposal to open that is for another day schedule. Look out, MoMA and affordable Italian cuisine. It’s NO DAY OFF AT OUT AND ABOUT ------27 Kettering will build a seven days a week time. ... others: Your Monday crowds may get just one of the newcomers 750,000-square-foot THE MET. Forty years thin. ... WALMART OUT, SHOPRITE IN. P. 25 worth trying out this fall. SNAPS------27 cancer-care center, while CUNY’s after closing its doors on Mondays to As Walmart shops for its first loca- CORRECTIONS Hunter College plans a 336,000- save cash, the Metropolitan Museum tion in New York City, it can cross square-foot science and health- Charles Bozian will play a key role in Big Brothers Big Sisters of New York City’s strategy of Art is thinking about reversing that Related Cos.’ Gateway II Shopping development and long-term business planning. His role was misstated in the Sept. 10 professions facility.Together they will decision—to boost revenue. The Center in East New York, Brooklyn, “Stretching Funds for a Nonprofit.” ultimately add a very healthy 830 jobs. about-face is courtesy of the city’s new off its list of potential sites.ShopRite Alexa von Tobel is CEO of LearnVest. Her surname was misstated in the Sept. 10 ... BROKER GETS $9.5B PRICE BREAK. status as a global tourist magnet, with will be taking the anchor spot in the “Money mavens vie for followers.” In a big coup, Morgan Stanley will 51 million coming here last year.“We mall. We’re sure the unions are pop- Cornell University and Technion-Israel Institute of Technology’s new tech campus is buy the near-half-interest in Smith turn away thousands of people every ping the bubbly over this deal. expected to be completed in 2037. The year was misstated in the Sept. 10 “Taking her Barney from partner Citigroup Inc. Monday,” Director Thomas Camp- —lauren elkies biggest byte yet.” The city began accepting proposals for a smartphone-based taxi-payment system in March. The date was misstated in the Sept. 10 FYI column, “Fashion Week struts its stuff: an $865M economic lift.” STORIES TO WATCH THIS WEEK vol. xxviii, no. 38, september 17, 2012—Crain’s New York Business (issn 8756-789x) is pub- lished weekly, except for double issues the weeks of July Fourth, Labor Day and Christmas, by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals postage paid at Sept. 19: New Sept. 20: Will Sept. 21: Empire Sept. 21: Official New York, N.Y., and additional mailing offices. Postmaster: Send address changes to: Crain’s B’klyn Dem leader the city’s State Building goes unveiling of New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (877) 824-9379. Fax (313) 446-6777.$3.00 a copy, $99.95 one to be named to unemployment red and white for Barclays Center. year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved. succeed disgraced rate fall below Where’s Waldo’s Vito Lopez. 10%? Stay tuned. 25th birthday.

2 | Crain’s New York Business | September 17, 2012 20120917-NEWS--0003-NAT-CCI-CN_-- 9/14/2012 7:56 PM Page 1

IN THE BOROUGHS QUEENS Biz eyes kick from soccer But park advocates wary of Flushing Meadows stadium

BY AMANDA FUNG

In the nearly four decades that Ali- cia Uzcha has parked her Ecuado- ran-food cart in Flushing Meadows Corona Park, next to a onetime or- namental pond and near several soc- cer fields,little has changed.Told re- cently, however, about tentative plans to build a 20,000-seat profes- sional soccer stadium on the site of the pond, Ms. Uzcha im- mediately perked up. “It would be good for every-

newscom one,” she said. PARK IT BARE MIDRIFF: Not for the flabby of abs, FOLLOW THE LINES: Vertical or horizontal, TOPS, BOTTOMS: By going with separates, SHADY BUSINESS: Stark black and white left “The water Flushing cropped tops are a big trend for spring, as chunky or narrow, stripes were everywhere, like blouses and skirts, design house Badgley spring’s typical pastels in the dust, as seen at smells bad, and Meadows seen in the show of Jason Wu. especially on the runways of Michael Kors. Mischka offered more versatility. the show of Catherine Malandrino. [the stadium] Corona Park by would be good the numbers for business.” The prospect 1,255 to open their wallets, designers of shape that there’s nothing new, of a big new soc- Total acres might be in for a lackluster spring. but from a retailer’s standpoint, it’s cer venue com- Runway shows Many highlighted trends were an indication of things that are ing to Queens’ continuations of seasons past— working and what they’ll continue largest park— 8M those stripes were everywhere, to do going forward,” said Maren the site of two Annual visitors especially on the catwalks of Marc Hartman, director of U.S. East World’s Fairs— Jacobs, whose show was relatively Coast content at London-based is winning the repeat the past tame. Sporty looks, including trend consultancy WGSN. thumbs-up from 1997 Year key Men in cropped tops,T-shirts and pockets, Another worry for the fashion everyone from Black scene were plentiful, as were separates— industry emerged during the festiv- soccer fans and filmed skirts and pants paired with ities. On Tuesday, smack in the local business Many Fashion Week looks lacked blouses, for example, rather than middle of Fashion Week,high-end owners to com- dresses. Designers also included retailer Burberry warned that its munity and 42 originality. Is a so-so spring ahead? more black and white, rather than sales growth has declined, fueling elected officials. Acreage of Nat’l Tennis Center stars (celebrities like Katie the traditional pastel and neon hues concerns that the luxury market is But already,park BY ADRIANNE PASQUARELLI Holmes) and the stripes (a big sar- of spring. Despite DJ Repeat play- slowing down. The company said advocates are up torial trend). But most of the de- ing another set, some experts re- its full-year profit will disappoint in arms over the possible loss of pub- The New York Fashion Week run- signs parading down the runways mained optimistic. investors; its shares, along with lic space for yet another sports stadi- way extravaganza, which conclud- last week lacked originality. With- “Talking about this from a trend those of Prada and LVMH, plum- um. Nearby, the U.S.Tennis Associ- ed last Thursday, brought out the out new styles persuading shoppers standpoint, people get all bent out See FASHION WEEK on Page 23 ation took 42 acres out of circulation for its three stadiums, the last of which was completed in 1997. At this point, however, it looks as though soccer’s supporters have the Slim supply gives condo prices new pop upper hand. “The stadium will create jobs and bring money to the shops and dominiums to an average of $5,800 prices for high-end housing are So far this year, 432 Park Ave. is restaurants in the area,”said Assem- Record rents, low per square foot. Not only is that a symptomatic of a phenomenon one of just 15 new condo projects blyman Francisco Moya,a soccer fa- interest rates help double-digit hike from the original that is beginning to be felt across whose offering plans were submit- natic who learned how to play at price set just two months earlier, it much of Manhattan. It is being ted to the attorney general’s office, Flushing Meadows with his friends heat up market comes three years before the 1,398- driven by everything from people which must approve them before as a kid, and is today actively in- foot tower is scheduled to be com- being priced out of the red-hot sales can begin. Although several volved in negotiations to bring the BY AMANDA FUNG pleted. rental market to a lack of new build- stalled condo projects have been re- stadium to the park. “It’s a win-win According to the filing with the ing in recent years. vived this past year and new devel- for Queens. Rarely does a project Late last month, the developers of state attorney general’s office, a “Prices will be pushed higher if opments are in the works as con- come along that is beneficial to the what will be the city’s tallest resi- one-bedroom apartment will start there is no relief in terms of supply,” struction lending loosens, the local community and city.” dential spire, now rising on Park at $4.96 million and a six-bedroom said Jonathan Miller,chief executive number of units projected to enter After three years of scouring the Avenue, submitted a plan to in- at $64.4 million. Experts say that of appraisal firm Miller Samuel Inc. the market in the next few years is city for a site, Major League Soccer crease asking prices for its 128 con- such hikes of already astronomical “It’s the basic law of economics.” See CONDOS on Page 23 See SOCCER on Page 18

September 17, 2012 | Crain’s New York Business | 3 20120917-NEWS--0004-NAT-CCI-CN_-- 9/14/2012 7:21 PM Page 1 IN THE Banks cut down to size MARKETS Top Goldman analyst when the lead financial-industry an- big banks need breaking up. Rather, by Aaron Elstein alyst at Goldman Sachs warned big the striking thing was that the words butts heads, advises banks that they need to take more came from a respected analyst not aggressive steps to shrink in size and known for rocking the boat at Wall the big boys to shrink bolster returns. Street’s most prestigious firm. “The operating environment is “I’m glad to hear Goldman say for greater gains unlikely to change any time soon,” this,” said Bill Smith, president of wrote Goldman analyst Richard money-management firm SAM BY AARON ELSTEIN Ramsden, “and we see shareholders Advisors,who called for Citi to split of challenged banks becoming more up long before the financial crisis.“It Jamie Dimon was addressing a crowd demanding in asking management gives more legitimacy to the idea of of investors last week when he got a breaking up the banks.” familiar question: Are the big banks “It’s a very gutsy, big call,” said too big? Certainly not, answered the ‘It’s a very gutsy one bank investor who requested chief executive of JPMorgan Chase anonymity because he didn’t want to & Co. and architect of what became call. It’s going jeopardize his relationship with Citigroup Inc. Goldman. “It’s going to upset some “There are huge benefits to size. to upset some powerful people.” Economies of scale, branding, di- In the report, Mr. Ramsden ar- versification,” Mr. Dimon said. powerful people’ gued that big banks need to shrink “Business logic drives it—not as they cope with a future of pro- whether you like it or not.” longed economic sluggishness and

Yet as the industry enters the fifth regulatory pressure. “Returns are newsbloomberg year of its post-Lehman Brothers more than just cyclically depressed,” funk, investors are making it clear teams to lay out a path to unlocking he wrote. “The vast majority of the that big banks are precisely what value in the near term.” reduction in shareholder returns is Successful seer’s they don’t like, and they’re pressing It wasn’t the content of those attributable to structural issues.” for major changes. The clearest sign comments that turned heads. After That outlook doesn’t jibe with of this rising discontent emerged a all, even Mr. Dimon’s mentor, for- the views of bankers like Goldman See ANALYST on Page 24 surprising forecast day before Mr. Dimon’s remarks, mer Citi CEO Sandy Weill,has said

ber-investor Ray Dalio (above) has built the world’s largest hedge fund, Bridgewater Associates, by Let’s talk Üaccurately forecasting big events—such as the housing crash of 2007, the eurozone mess and other calamities. According to Forbes, his personal income was expertise. $3 billion last year. Unsurprisingly, his public appearances draw big crowds, and last week such luminaries as Paul Volcker, Loews Corp. CEO James Tisch and rival hedge fund Hands-on partners with years of manager John Paulson all flocked to the Council on Foreign technical and industry-specific Relations to listen to the man who manages $120 billion. expertise. Advisors who offer insights What they got was a lesson in what Mr. Dalio calls and ideas to help you make smarter “beautiful deleveraging,” which is the relatively happy state of business decisions. Unmatched affairs the U.S. is in right now, thanks to heavy government integrity. Unsurpassed results. If that’s what you’re looking spending offsetting the economic globe. That’s why it’s so urgent for drag of American consumers and governments to keep borrowing and for in an accounting firm, companies paying down their debts. spending to fend off a crushing wave talk to J.H. Cohn. Unfortunately, Mr. Dalio said, of falling prices and incomes. this precarious equilibrium is Of course, hedge fund managers threatened by the dreaded “fiscal like Mr.Dalio tend to emphasize the cliff.” That’s the Jan. 1 witching grim side of things. Most hedgies hour when tax cuts from both the have been so focused on what’s going Bush and Obama eras expire and wrong in the world that they’ve bad- spending cuts to resolve last year’s ly missed the nifty rally in U.S.stocks brutal fight over the debt ceiling are this year. The average hedge fund slated to take effect. “There’s more was up only 4% through August, or of a risk of a depression than a re- about a quarter the pace of the S&P cession if we go over the fiscal cliff 500,according to research firm Hen- next year,” Mr. Dalio warned. nessee Group. Although it isn’t clear The stakes are high because, as what Bridgewater’s performance is We turn expertise into results. sluggish as the U.S. economy might this year, Forbes reported that last look,it’s a veritable growth machine year it returned “in the 20% range,” compared with Europe or China. while the S&P was flat. Europe, Mr. Dalio predicted, faces As for the U.S., Mr. Dalio sees a “lost decade” as leaders there fight encouraging progress. “We were in over how to distribute the pain a car crash and the intensive care stemming from dud loans made in unit,” he said, referring to the Steven Mayer, Spain, Italy and other places. The events of 2008. “We’re healing, or Regional Managing Partner Joe Torre bill could total more than $2 trillion. largely healed, and the current pat- As for China,“its bubble is burst- tern is largely sustainable.” ing,” Mr. Dalio said, adding that the Unless, he added, leaders in slowdown of the world’s economic Washington screw things up. And engine of the past several years adds the odds of that happening are jhcohn.com 877.704.3500 to deflationary pressures across the tough to figure, right? Right? Ⅲ

EIGHT TIMES EVERY YEAR, Ben Bernanke and other Federal Reserve policymakers New York . New Jersey . Connecticut . Massachusetts . California announce what interest rates will be. Since 1994, 80% 8/80 of the stock market’s gain has taken place on those select few days, according to a study from the Federal Reserve Bank of New York.

4 | Crain’s New York Business | September 17, 2012 CN015401.qxp 9/11/2012 1:56 PM Page 1 20120917-NEWS--0006-NAT-CCI-CN_-- 9/14/2012 7:57 PM Page 1 THE INSIDER by Andrew J. Hawkins REAL ESTATE NY election winners and losers he primary election for state offices last week, which a few months ago was shaping up to be a typically sleepy affair, proved to be one of the more See why at BryanCave.com/nyrealestate Texciting and unpredictable in years. Scandals shook up several races, causing the rare defeat of sitting legislators. And one of the upset winners, Mark Gjonaj (above), was one of those candidates who never seem to finish first: an unheralded businessman, in his debut race, running with a demographic disadvantage against an incumbent backed by the county Democratic organization. But for every contender who triumphed or tanked, there were others not on the ballot who emerged with either a sheen or a shiner. WINNERS: StudentsFirstNY. The education reform group, which supports charter schools, poured $17,000 into Nily Rozic’s winning Assembly campaign in Queens. Her opponent, Jerry Iannece, had the strong backing of the United Federation of Teachers. Hakeem Jeffries. The soon-to-be-congressman’s pick to succeed him in the Assembly, Democratic district leader Walter Mosley, romped in a three-way primary. The New York Post. The tabloid hammered Assemblywoman Naomi Rivera for padding the pockets of her son and boyfriends.Though her district is 45% Hispanic, she fell to Mr. Gjonaj, a real estate professional Discover 360° Service. with an Albanian name that most voters couldn’t even pronounce. Eric Schneiderman. The attorney general’s indictment of Sen. Shirley Huntley led to her defeat, which should deter other lawmakers from misappropriating public money. Losing her seat also cost Ms. Huntley Project management is good. her most valuable bargaining chip should she try to reach a plea deal. Arthur Cheliotes. The CWA Local 1180 president went all-in for Ms. Project leadership is better. Rozic and Councilman James Sanders, who knocked off Ms. Huntley. Mr. Cheliotes’ union is proving to be an effective component of the Cassidy Turley’s experts deliver superior results on time and on budget Working Families Party machine. with 10–20% savings. We understand your goals, mitigate risks and LOSERS: add value—from site selection through move-in and beyond. LGBT lobby. Results were mixed for Republican state senators who voted for same-sex marriage. Mark Grisanti cruised to victory, but Roy McDonald’s and Stephen Saland’s races were too close to call.That showed gay-rights backers can’t always protect allies in conservative districts—a PLANNING PROGRAMMING bad omen for nondiscrimination bills in Albany. Vito Lopez. The assemblyman has had a rough month since sexual- harassment allegations against him came to light. His backing of Lara BUDGETING Genovesi sank her Civil Court campaign. Queens Democratic Party. The organization might not DESIGN lose sleep over Mr. Sanders’ defeat of the scandal-scarred Ms. Huntley, but Mr. Iannece’s loss is harder to excuse. BUILD SPACE MANAGEMENT Queens GOP. Councilman Eric Ulrich’s blowout of the Republican county organization’s candidate, Juan Reyes, weakens Chairman Phil Ragusa, who is at odds with Mr. Ulrich’s faction of the county party.The councilman faces Democratic state Sen. Joseph Addabbo in November. Vito Lopez Discover Excellence in Project Management. Haitians. Rodneyse Bichotte was crushed by Brooklyn Discover Cassidy Turley. Assemblywoman Rhoda Jacobs in a Caribbean district, revealing Haitian- Ⅲ Peter Hennessy Americans’ lack of political strength. President, New York Tri-State Region 212.318.9790 For daily political and government news, subscribe to [email protected] CRAIN’S INSIDER @ www.crainsnewyork.com/insider www.cassidyturley.com

Project & Development Services / Tenant Representation / Project Leasing / Property Management / Corporate Services / Capital Markets CN015380.qxp 9/4/2012 3:23 PM Page 1

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BUSINESS 70% of Fortune 500 CEOs have no presence on social networks PEOPLE Source: 2012 CEO.com Social CEO Report

EXECUTIVE MOVES

Westmed Practice Partners: Anthony Viceroy, 43, joined the health care management services company as chief financial officer. He was previously global president and chief financial officer at Porter Novelli. Fareportal Inc.: Mark Drusch, 52, joined the travel technology company as chief supply relations officer. He was previously executive vice president at e-Rewards, and president and chief executive at e-Miles. Studley: Evan Margolin, 40, was promoted to senior managing director at the real estate services firm. He was previously an associate. Hunter Roberts Construction Group: Christopher Phillips, 53, joined the company as senior vice president and chief marketing officer, a newly created position. He was previously senior vice president and chief marketing officer at Tishman Realty & Construction/AECOM Construction Services. Henry Schein Inc.: Carol Raphael, 70, joined the health care services and product provider’s board of directors. She was previously president and BIG PRODUCER: Daniel Spitz’s passion for fruit chief executive of the Visiting Nurse has paid off. His sweet Service of New York. mangosteens sell for TAG Associates: Jonathan M. Bergman, $25 a pound. 37, joined the wealth management firm as managing director. He was previously chief investment officer at Palisades Hudson Financial Group.

buck ennis St. Patrick’s Cathedral: Loual GOTHAM GIGS Pouliafito, 30, joined as director of development, a newly created position. He was previously director of development at How ’bout them pineapples? Monsignor Farrell High School. Siegel+Gale: Russ Meyer, 50, joined the branding firm as global strategy director. He was previously global Gourmet grocer Daniel Spitz’s not-so-still life chief strategy officer at Landor Associates. Horizon Engineering Associates: Fruitmonger Daniel Spitz sure can pick ’em. ¶ perfect piece of fruit. When the Orchard opened, William Mathewson, 34, was He gladly The 84-year-old pioneer in the gourmet-food he’d go to a fruit auction held outside the Battery promoted to director of energy movement has devoted a lifetime to pursuing the Tunnel in Manhattan at 3 a.m. to rifle through services at the commissioning firm, a traveled newly created position. He was world’s finest oranges, plums and other produce. boxes of plums, apples and melons. He flew to previously senior engineer. far and He opened his grocery store, the Orchard, in Hawaii in the 1960s to bring some of the first Spector Group: Jeff Fells, 40, joined the Brooklyn’s Midwood neighborhood in 1957 with fresh pineapples back to the Big Apple. And he’s architecture, planning and design wide in firm as director of business just $500—an amount that today barely buys five even made trips to farms in California and development, a newly created of the fruit shop’s bountiful baskets of mango, Florida to survey their soil and trees. “They called position. He was previously vice search of president of real estate and corporate melon and strawberries. ¶ “My price was always me the Department of Agriculture,” said Mr. sales at Empire Office. fine fruit. higher than anyone else’s,” said Mr. Spitz, who Spitz. ¶ These days, his 2,000-square-foot BDO USA: Adam Cole, 44, was ‘This makes no bones about a $4 peach. “But if storefront is home to a host of rare and exotic promoted to someone ever looked at my fruit, they’d want to fruits—California white apricots called snowcots, Greater New York business health care and buy it.” ¶ Just ask former President Jimmy Carter, donut peaches, elephant plums. Ever try a nonprofit office is like a who ordered 50 boxes of Orchard pineapples for mangosteen, a sweet and tangy fruit from business line leader his inauguration party. And each year, scores of Indonesia best eaten wearing a bib? At $25 a at the professional services firm. He drug’ gourmands beyond Brooklyn make a pilgrimage pound, it’s an expensive habit—one Mr. Spitz has was previously a partner. to the Coney Island Avenue shop. ¶ Throughout no intention of quitting anytime soon. ¶ “This Brian Eccleston, 52, was promoted to Northeast assurance regional business his 55-year career, Mr. Spitz has shown a business,” he said, “is like a drug.” line leader. He was previously New willingness to do whatever it takes to find that —shane dixon kavanaugh York assurance office business line

8 | Crain’s New York Business | September 17, 2012 20120917-NEWS--0009-NAT-CCI-CN_-- 9/13/2012 5:32 PM Page 1

leader. Arthur Lund, 64, was promoted to CORPORATE LADDER Greater New York financial services office business line leader. He was previously a partner. DEL TORO IS BULLISH ON DIGITAL AD MARKET Christopher Orella, 51, was promoted to New York assurance office business line THE INTERNET OVERFLOWS with unsold advertising space across an ever-growing number of platforms: desktops, phones, leader. He was previously a partner. tablets. And brokers have sprung up to help publishers fill that void. Digital advertising company Undertone says that because JWT New York: Ben it sells only the Internet’s prime real estate—the ad space of top online publishers—it offers companies the biggest bang for their James, 34, joined the advertising buck. marketing communications “Success is fleeting and it is constantly changing, and if you are not proactive, you are going to fall behind very quickly,” said agency as executive Joe Del Toro, 41, the newly appointed chief financial officer at Undertone. creative director. He Mr. Del Toro was a general manager of Time Inc.’s Fortune|Money Group and most recently chief financial officer at Topps was previously a Co. Those credentials inspired him to move from primarily analog industries to digital media. At Undertone, he will be freelance creative responsible for investing Undertone’s capital wisely and strengthening the company’s balance sheet. director. “I wanted to be in an industry that was growing, changing fast, where digital is more than just an initiative,” said Mr. Del Toro, Citymeals-on-Wheels: Sharda Sekaran, 35, joined the nonprofit as director of who will aim to capitalize on the growth of online video advertising. “Fish where the fish are.” marketing and communications. She —EVA SAVIANO was previously director of news and field media at the Gay and Lesbian Alliance Against Defamation. Brooklyn Museum: Paul Bessire, 51, was appointed deputy director for development. He was previously deputy director for external relations at the Institute of Contemporary Art, Boston. Engineered Tax Services: Peter Scalise, 39, was promoted to national partner in charge, federal tax practice leader. He was previously executive managing director and federal tax practice leader. Berdon: Thomas G. Butler, 58, joined the accounting and advisory company as a tax principal. He was previously a tax partner at Grant Thornton. CROSS-CROSS-CROSS- Ronald Storch, 45, joined as a partner of firm operations. He was previously a partner and chief operating officer at Grassi & Co. CROSS-CROSS-CROSS- Tishman Construction Corp.: Rich Steimel, 52, joined the construction subsidiary of AECOM as senior vice president, CROSS-CROSS-COUNTRY. health care, a newly created position. He was previously senior vice president at Lend Lease. [x+1]: Peter Moritz, 51, joined the data NOW SERVING LAX 8 TIMES DAILY. management platform provider as senior vice president, sales. He previously ran his own firm, PWM Associates. Bridget Bidlack, 41, joined as vice president, product management. She was previously vice president, product management, at Traffiq. Kaufman Rossin & Co.: Stephen Ng, 39, joined the accounting firm as senior tax manager. He was previously senior tax manager at Margolin Winer & Evens. adtivity by appssavvy: Peter Wang, 30, joined the activity advertising technology company as senior vice president of engineering, a newly created position. He was previously director of engineering at Buddy Media. Eli Daiches, 29, joined as senior platform engineer, a newly created position. He was previously senior developer at Goldman Sachs. Bryan Valenti, 29, joined as analytics engineer, a newly created position. He was previously senior software developer at General Dynamics. Michael Kim, 30, joined as QA engineer. He was previously an engineer at Tremor Media. Frank Crystal & Co.: Walter S.Tomenson III, 35, joined the insurance brokerage firm as producer and executive director. He was previously a principal and private equity and mergers and acquisitions practice leader at Integro Insurance Brokers. —eva saviano EXECUTIVE PROMOTIONS DELTA.COM/NYC The fastest way to get an announcement into Crain’s is to submit online. Fill out the form at www.crainsnewyork.com/section/ executive_moves. The Executive Moves column is also available online.

September 17, 2012 | Crain’s New York Business | 9 20120917-NEWS--0010-NAT-CCI-CN_-- 9/14/2012 2:51 PM Page 1

OPINION CRAIN’S NEW YORK BUSINESS

Foolish pols railroad MTA editor in chief Rance Crain publisher, vp Jill R. Kaplan he chairman and chief executive of the mass transit connecting them to New York City, the EDITORIAL Metropolitan Transportation Authority, editor Glenn Coleman economic engine of the region. deputy managing editors Valerie Block, Joseph Lhota, should not have to beg the Imagine if Long Island Rail Road or Metro-North Erik Ipsen city’s business community to stand up for assistant managing editors Erik Engquist, service were canceled to every suburb whose state senator Jeremy Smerd his agency. Businesspeople well know: called for elimination of the payroll tax. Commuters would senior producer, news Elisabeth Butler Cordova Nothing is more important to the regional news producer Lauren Elkies promptly revolt. Mr. Lhota is correct that there is a contributing editor Elaine Pofeldt economy than its mass-transit network, disconnect between MTA-bashing pols and their columnists Greg David, Alair Townsend which carries more riders per weekday—about 8.5 million— crain’s health pulse editor Barbara Benson constituents who depend on mass transit. senior reporters Theresa Agovino, than there are residents of the city. But having trains bypass their towns is not an option. Aaron Elstein, Lisa Fickenscher, Matthew Flamm, T Miriam Kreinin Souccar But there was Mr. Lhota at a Crain’s Breakfast Forum last Perhaps the tax can be redesigned so employers don’t have to reporters Amanda Fung, Andrew J. Hawkins, week, imploring 500 executives to tell their elected officials pay it by check every quarter. If it were collected seamlessly, Adrianne Pasquarelli that the MTA needs support, not stabs in the back.The web reporter, producer Ian Thomas like other MTA taxes, art director Steven Krupinski latest attack on the agency is a lawsuit against legislation that it would be a nonissue. deputy art director Carolyn McClain Nothing is more staff photographer Buck Ennis enacted a payroll tax and other revenue-raisers desperately Mr. Lhota raised copy desk chief Steve Noveck needed by the transit system.The suit, which a misguided copy editor Thaddeus Rutkowski important to the other concerns at the data editor Suzanne Panara state judge in Nassau County sided with last month, is part Crain’s breakfast (see assistant data editor Emily Laermer of the suburbs’ perpetual assault on the 0.34% tax imposed area’s economy researchers Eva Saviano, Amy Stern page 19), notably the intern Emily Lundeen on payrolls in the MTA’s 12-county region. than mass transit need for new, stable We had hoped a reform measure passed in Albany late ONLINE AND INTERACTIVE SERVICES MTA funding sources general manager, online & e-commerce last year exempting small businesses from the tax—with and his desire to strategy Kira Bindrim state funding pledged to make up for the lost revenue— senior web developer, interactive reduce discounts that Chris O’Donnell would put the matter to rest. But elected officials (including cut the average fare to the aforementioned judge) in counties on the transit ADVERTISING, MARKETING AND PRODUCTION $1.63. Congestion pricing, including East River bridge tolls, advertising director Trish Henry system’s periphery are still trying to score political points by is the most sensible revenue solution because it would make senior account managers Irene Bar-Am, attacking the tax.They seem blissfully unaware that the Courtney McCombs, Sheryl Rose, Suzanne Wilson city driving more efficient and curb pollution. Fare discounts account executive Jill Bottomley Kunkes government subsidy per ride on MTA commuter railroads could be trimmed without lengthening lines at MetroCard sales coordinator Danielle Wiener is several times greater than that of subway rides, and they’re newsletter product manager Alexis Sinclair vending machines. But incentives to buy unlimited-ride credit Todd J. Masura (313-446-6097) in denial about what would happen to their towns without director, audience development cards—the MTA’s best-liked product—should remain. Michael O’Connor senior marketing manager Catherine Schutten event producer Courtney Williams CRAIN’S ONLINE POLL COMMENTS reprint sales manager Lauren Melesio production and pre-press director Michael Corsi advertising production manager Suzanne Fleischman Wies

Sidetracked transit TO SUBSCRIBE: For print and digital subscriptions or customer A SUBWAY SERIES support my 401(k) that exists goes significantly in one service, e-mail [email protected] OF READER COMMENTS only if I use my own money? direction. or call 877-824-9379 (in the U.S. and Canada) or Let them pay more of their —norman oder 313-446-0450 (all other locations). $3.00 a copy for the print edition; or $99.95 one year, $179.95 two Re “MTA chief may trim fare own health care premiums just Atlantic Yards Report years, for print subscriptions with digital access. discounts” (CrainsNewYork like the rest of us have to. I say Brooklyn www.crainsnewyork.com/subscribe .com): What has the MTA enough is enough, and I’m mad done for us lately, through all as hell. Are you? A SUGGESTION TO ADVERTISE: ARE YOU BETTER OR the rate hikes, late trains, etc.? —gail pizzigati FOR 9/11 MUSEUM Contact Advertising Director Trish Henry at A monopoly subsidized and [email protected] or call 212-210-0711. WORSE OFF THAN www.crainsnewyork.com/advertise protected by the government FOUL CITED IN BARCLAYS It’s wonderful that City Hall YOU WERE FOUR that operates as it pleases and CENTER STORY and the governor’s office have FOR INFORMATION ON OUR EVENTS: raises prices whenever “pension OK’d construction being Contact Event Producer Courtney Williams at YEARS AGO? accounts” get low? If the MTA There’s something barely resumed at the 9/11 museum [email protected] or 212-210-0257. had shareholders (which would hinted in the article “Nuts for (CrainsNew York.com). It’s www.crainsnewyork.com/events Better. technically be us taxpayers), it the Nets” (Aug. 6), Crain’s important for families who TO CONTACT THE NEWSROOM: Worse. would have been disassembled “curtain-raiser” on the Barclays have lost loved ones to have a 711 Third Ave., New York, NY 10017-4036 Date of poll: Sept. 11 and auctioned off by now. And Center’s opening this month: A building in their honor. editorial phone: 212.210.0277 fax 212.210.0799 551 votes it sounds like its union couldn’t new arena, with luxury suites It also would be great for Entire contents ©copyright 2012 Crain Communications Inc. care less about the taxpayers and enormous sponsorship residents around Albany Street All rights reserved. ®CityBusiness is a registered trademark who put food on its members’ opportunities in the country’s to have access to the museum. of MCP Inc., used under license agreement. tables. biggest media market, is key to Many people in the financial PUBLISHED BY CRAIN COMMUNICATIONS INC. 49% —david watts billionaire Mikhail Prokhorov’s district and all over the city chairman Keith E. Crain Better willingness to spend money would have a place to gather in president Rance Crain Are you kidding? Rising and the new attention paid to loving memory of those who secretary Merrilee Crain pension costs? These union the basketball team. are gone. Despite the 9/11 treasurer Mary Kay Crain workers have already abused And what enabled that? tragedy, the financial district is executive vp, operations William Morrow senior vp, group publisher Gloria Scoby the system with disability Public subsidies and other doing its best to uphold the group vp, technology, circulation, 51% pensions. I say let them put assistance, including the gift of area’s history and culture by manufacturing Robert C. Adams Worse money into 401(k)s like the rest naming rights for a publicly birthing new developments and vp/production, manufacturing David Kamis of us. Why should we support supported arena. construction. chief information officer Paul Dalpiaz their pensions? Do they In other words, the upside —city girl founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) FOR THIS WEEK’S QUESTIONS: CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to [email protected]. Send columns of 475 Go to www.crainsnewyork.com/poll to have your say. words or fewer to [email protected]. Please include the writer’s name, company, address and telephone number.

10 | Crain’s New York Business | September 17, 2012 20120917-NEWS--0011-NAT-CCI-CN_-- 9/13/2012 7:14 PM Page 1

PUBLIC WORKS As gov’t jobs drop, Gov’t employees per capita U.S. New York state 0.076 the economy drags New York City 0.071

ost New Yorkers have the impression that the city is bloated with government workers. It 0.066 turns out that it is not true, at least according 1990 2011 to a statistic that is assuming new importance Source: Independent Budget Office in the debate over the role the public sector tracks federal and state workers, as should play in the economy.The metric is government employ- well as the city head count. M All statistics need context,so here ees as a percentage of the population,and it’s being emphasized is what else needs to be considered. by liberal think tanks like the Economic Policy Institute,as well How does New York compare with the other largest cities in the as economist and New York Times country? As far as I can tell, no one columnist Paul Krugman. Since the has looked at that issue. It is impor- peak of public-sector employment in tant because it could be that the August 2008, governments have cut larger a city is,the more efficiently it 680,000 jobs, according to the EPI. can provide services. If the sector had grown at the rate it So why are taxes so much higher did in the Bush administration,there in New York than in any other big would be 1.1 million more jobs. city? That answer is probably that Given the multiplier effect, the total workers here cost more in wages and loss to the country is something like benefits than elsewhere. 2 million. If those jobs had not been If the New York economy has eliminated, the nation’s employment done so much better than the rest of picture would be much better. the nation,as Mayor Bloomberg in- Beyond the economic impact, GREG DAVID sists, why have we reduced workers? the cutbacks show how America is One of the great secrets of New York unwilling to make the investments is that the economy and budget do needed for the future. As the U.S. York City compares with the rest of not track. The budget is dependent population grows,Mr.Krugman ar- the country.As the chart shows,New on Wall Street, and as profits have gued earlier this month, so should York City has fewer government plunged and pay has contracted, the public sector. We need more workers per capita than the nation or revenues have been squeezed. teachers for more students, right? the state, and the decline in public- What does this mean if the city’s I asked the Independent Budget sector employment during the reces- population continues to grow? At Office to calculate government em- sion has been even more severe here. some point, the public-sector work- ployment per capita to see how New It is important to remember that this force will have to increase.

MICHAEL WEBER However, it is not the employees who are the winners in such scenar- ios. The plaintiffs’ attorney often When lawyers are takes home one-third of the class settlement and sometimes more, enough for years of Michelin-star the only winners dinners,leaving the plaintiffs order- ing off the dollar menu. This disparity could be easily he hospitality industry is under siege by attorneys rectified. First, the FLSA could re- who stand to gain big fees from huge class-action quire employees or their counsel to provide advance notice of potential settlements. The same gains do not apply, howev- claims with an opportunity to er, to the waitstaff and other restaurant employees cure—the employer could then pay on whose behalf these lawsuits are filed. the employees what they may be On a federal level, wage and hour claims are brought under due, avoiding the time and expense T of class-action litigation. Lawsuits the Fair Labor Standards Act,passed in the 1930s to address in- might also be barred so long as the tolerable conditions,such as child labor and six-day workweeks employer could demonstrate that it paid overtime after 40 hours, other- of 10- to 12-hour days without over- collect hundreds of dollars per week wise followed customary practice in time pay. Such conditions were long in tips, which is often the case. the industry,and that the alleged vi- ago eradicated from most restaurants When faced with class actions, olation was not willful. and other establishments, but the most restaurants have few options. In the event that employees and FLSA, as well as state wage and hour Potential damages often amount to their counsel filed a lawsuit even af- laws, have continued to expand by double the wages or tips owed, dat- ter the employer made the required prohibiting common practices that ing back from two to six years. Pre- remedial payments and established many eateries have followed for years. judgment interest rates can be as that it did not knowingly violate the Customers might be surprised to high as 9%, depending on the state, law,they would be required to eat the learn, for example, that while a and plaintiffs’ “reasonable” attor- defendant’s attorneys’ fees—their restaurant is permitted to require neys’fees can be enough to put many just deserts. Only when plaintiffs’ at- front-of-the house employees to operations out of business. Not in- torneys have some “skin in the game” “pool”their tips,the pool may be ille- cluded here are the costs of defense will they think twice about filing law- gal if it is shared with employees who counsel, the hit to the restaurant’s suits that have limited legal support interact with customers only indi- reputation, and the disruption of but are often settled because of the rectly. And if the pool is illegal, re- daily operations. For many owners, extortive effect of these claims. gardless of the reason, the restaurant settling the plaintiffs’claims,regard- can incur enormous liabilities to em- less of their merit,is the most reason- Michael Weber is an employment and labor- ployees,even if those employees each able business decision. law attorney based in Manhattan.

September 17, 2012 | Crain’s New York Business | 11 20120917-NEWS--0012-NAT-CCI-CN_-- 9/13/2012 5:32 PM Page 1

SMALL BUSINESS Using wind to power a brand Turbines don’t pump the brews at Barcade, choose to purchase wind power as an the firm spends about 5% extra for option when ordering service. wind power but hasn’t had to pass the but buying renewable energy gives the biz buzz Using wind power adds to the costs along to customers. bar’s credibility as a green business. About 200 small businesses in through the skylight expecting to “We brag about it,” said owner Paul New York City operate on wind pow- BY BRUCE W. FRASER see a turbine.But none is to be found Kermizian, who opened his Brook- er, which is supplied by New York’s in the Brooklyn bar, which brings lyn arcade in 2004, followed by loca- main wind energy supplier, ConEdi- hen customers together American craft beer and tions in Jersey City and Philadelphia son Solutions,or CES,a subsidiary of learn that classic video games. Wind power in in 2011, which also use wind power. Consolidated Edison Inc. that is buck ennis Williamsburg the U.S. today is primarily generat- Mr.Kermizian,who expects total based in Valhalla, N.Y. They’ve been GREEN BEER: Barcade’s Paul Kermizian pays hangout Bar- ed by giant turbines, which feed the revenue from the three locations at joined by larger firms such as 1,000- 5% more for wind power at his three outposts. cade relies on energy into regional power grids. his profitable, 40-employee compa- employee Chelsea Piers Sports and windW power, they sometimes look Electricity customers can simply ny to top $3.5 million in 2012, said Entertainment Complex in Manhat- tan, which in 2008 also signed up for green power through CES. Wind-power manufacturing fa- cilities in the U.S. more than doubled from 2009, to about 470 in 2011. Meanwhile,wind’s share of U.S.elec- Commercial Banking Group tricity grew to 2.9% last year, from about 1.3% in 2009, according to the Commercial Real Estate Energy Information Administration. Customers are typically looking to help the environment, according to Michael Forese, national sales di- rector for CES. “They’re obviously paying a little bit more, knowing they’re getting a cleaner product.” With the possible expiration of a key tax credit Dec. 31, the renewable power industry’s growth could slow, analysts say, after an expected record increase in capacity PERCENTAGE2.1% in 2012.Mr.Forese of power in the said that isn’t likely state generated to raise the price by wind customers pay for wind power. “The tax credits SHARE52%of the provided incentive state’s energy for generators to needs that could get into the busi- be met by wind Sources: American Wind ness, so even if the Energy Association, credits expire and National Renewable are not renewed, Energy Lab that will not drive renewable power generators out of the market,” he added. Meanwhile, some owners have found ways to offset the increased costs.Swing Salon,a three-chair shop in the East Village that uses organic products and supports environmental causes, has relied completely on wind power since 2007. Co-owner Caro- line Holley said that the cost of elec- tricity is higher, but “it turned out not to be that big a difference.” “Once we put in energy-efficient lighting four years ago, our bill went down 40%,” she said. She now promotes her salon’s en- ergy efficiency through its website,as well as on Twitter and Facebook. For many businesses, using wind power complements other “green” practices. Bark Hot Dogs, known for locally sourced ingredients, has relied completely on wind power since opening its Brooklyn Bridge Park lo- Capital One Bank® helps real estate companies take their businesses to the cation in 2009. It now depends on next level. As a top-10 U.S. bank, our dedicated Commercial Real Estate wind energy in two other locations, a seasonal one on Manhattan’s High specialists deliver custom solutions, from streamlined cash flow to project-based Line and another in Park Slope, financing. For real results in real estate, count on the experts at Capital One Bank. Brooklyn. “Wind power ties into what we believe,”said Brandon Gillis, Ⅲ Visit capitalonebank.com/commercial to learn more. owner of the 60-employee chain. To sign up for Crain’s Products and services offered by Capital One, N.A., Member FDIC. © 2012 Capital One. SMALL BUSINESS newsletter, go to Capital One is a federally registered service mark. All rights reserved. www.crainsnewyork.com/smallbiz.

12 | Crain’s New York Business | September 17, 2012 20120917-NEWS--0013-NAT-CCI-CN_-- 9/13/2012 5:33 PM Page 1

REAL ESTATE INSIDE The List NY’s largest real estate investment trusts PAGE 15 Real Estate Deals Golden Lioness REPORT bags AXA unit in Brooklyn, and more PAGE 16 Hip crowd

BIG DEALS: SL Green’s reshapes Steven Durels calls small tenants the “biggest force” in the Bowery market today. triangle Creative vibe draws Web firms, trendy retailers and pricey condos

BY KERRY MURTHA

Just three years ago, the owner of 411 Lafayette St. emptied all but a third of the space in the hand- some six-story brick-and-ma- sonry building, spent $6 million fixing it up, and waited. Steve Meringoff,a principal at real estate investment firm Him- mel + Meringoff, which has owned the building for nearly 30 years, recalled the experience as “painful.” Happily, it also paid off. Today, 411 Lafayette is fully oc- cupied, with tenants that include two media companies, a photog- raphy studio and administrative offices for New York University. Meanwhile, the ground-floor space in the 103,000-square-foot building was recently used to stage a photo show chronicling the lives of New York City sani- tation workers. “There’s a new breed of ten- ants here that are driving the market,” said Mr. Meringoff, who noted that per-square-foot office rents in the area have jumped by about $20 in the past buck ennis five years, to $50. In fact, the narrow, eight- block-long triangular slice of lower Manhattan running north along Lafayette Street from East Houston Street up to Astor Place, and from Lafayette one Subdivide and conquer block east to Bowery,is becoming Manhattan’s newest hot spot. It Landlords go where tiguous block of space and then seek a LION’S SHARE and others. boasts an eclectic mix of office, single blue-chip tenant to fill it. In- “We have healthy tenants filling hotel, residential, academic and the action is and cater stead, the landlord did the opposite, Leases of 2,500 square feet or the building,as opposed to waiting for cultural tenants. breaking up those units into still- less as percentage of total the few 20,000-square-footers that At the base of the triangle on to smaller outfits as smaller pieces. everyone chases heavily in this mar- the south side of Houston Street, “We’re knocking out 3,000- to 52% ketplace,” said Mr. Weisser. Kushner Cos. has renovated the big tenants sit tight 7,000-square-footers left and right,’’ It is an increasingly common tale. landmarked 126-year-old Puck said Gregg Weisser, Moinian’s execu- Traditionally, given a choice between Building at 295 Lafayette St.Two BY STEPHEN KLEEGE tive managing director of leasing. 36% leasing space to an army of small ten- blocks up is newly trendy Bond Working with Cushman & Wake- ants with all the attendant hassles and Street, with its starchitect- Last year, with a total of 100,000 field Inc., Moinian signed up tenants expenses over the lives of their leases, designed condominiums.And up square feet of vacant office space for nearly half the space in the block- many landlords hold out for large- at the top of the triangle,develop- spread among several floors at 535- long property between East 44th and space users. But a slow economy, a er Edward Minskoff is erecting 545 Fifth Ave.,Moinian Group could 45th streets in just seven months, lur- 2008 2012 paucity of big tenants in the market 51 Astor Place,which is expected have taken the usual approach: shift ing Media 3, Canadian Television Source: Commercial Tenant Real Estate and finicky lenders keen not to have to boast the highest-priced office tenants around to create a large con- Sales Inc., Sandeep Diamond Corp. Representation Ltd. See SUBDIVIDE on Page 14 See HIP CROWD on Page 14

September 17, 2012 | Crain’s New York Business | 13 20120917-NEWS--0014-NAT-CCI-CN_-- 9/13/2012 5:34 PM Page 1

REPORT REAL ESTATE

lease from a Merrill Lynch or a Bank of America.” Subdivide and conquer But going small also has its downsides. Signing on 20 tenants for 5,000-square-foot spaces in- Continued from Page 13 Group figures. ant, fashion and lifestyle company stead of one for 100,000 square feet all their borrowers’ eggs in one bas- “In our portfolio, we’ve done a Ecko Unlimited, had to slash its is far more labor-intensive. What ket are changing that. These days, pretty extensive program [to recon- 250,000-square-foot office to a makes it more so is small tenants’ buck ennis small may still not be beautiful—or figure buildings],” Mr. Durels said. fraction of that size. propensity for shorter-term leases HOLDING OUT even simple—but it is the only thing He points to the 1.4 million-square- Today,that erstwhile Ecko space of three to five years. getting the job done.In other words, foot Graybar Building at 420 Lex- in the 600,000-square-foot proper- FOR HEAVY HITTERS for many owners it’s not a choice as ington Ave. and the firm’s ty is occupied by a mix of media and Not more costly MANY LANDLORDS have gone with much as a necessity. 900,000-square-foot tower fashion companies, including App- That can triple the amount of pa- the flow of the market in recent “It would surprise me if just up the street at 485 Nexus and the Aramis division of perwork over the 10 years of a big- years and subdivided their there’s any landlord who’s Lexington Ave. Estée Lauder. tenant lease, said Yvonne Chang, an available space. Not Anthony intentionally favoring 2% In each, SL Green is “We rented space to single-floor associate broker for the Kaufman Malkin. small over big tenants,” Portion of total dividing spaces of users to spread our credit risk among Organization who is implementing a “We have been consolidating said Steven Durels, ex- leases made up 10,000 to 20,000 square various tenants and to attract other small-tenant plan at 1407 Broadway from smaller tenants to ecutive vice president of larger units feet into 2,500- to high-quality tenants that would with her colleague Jessica Kosaric. larger,” said the president of and director of leasing at 6,000-square-foot units, grow in the complex,” said Andrew With properly prebuilt space, how- Malkin Holdings, which controls SL Green Realty Corp.,the building out the offices on Roos, vice chairman of Colliers. ever, the overall investment required 8 million square feet of office city’s largest office landlord. spec, and getting good money Meanwhile, real estate private- to replace tenants is about the same space in Manhattan. “[The shift] is driven by small ten- for its efforts. equity firm Savanna, which owns 4 as for larger tenants,Ms.Chang said. Among other factors behind ants being the biggest force in the “For the small tenant, that takes million square feet of office space in “If a tenant moves out, you really that decision, he cites the simple market.” inconvenience and capital cost out a portfolio of 12 buildings with just need fresh paint and carpet,” fact that investing large sums to of the equation,” Mr. Durels said, floor plates that are typically no said Ryan Nelson, senior vice presi- upgrade air-conditioning and Increased demand noting that today’s tenants are “more more than 20,000 square feet, is dent at Sherwood Equities. electric systems would be The data bear him out.This year, design-sensitive’’ and will pay a pre- subdividing those spaces in build- What’s more,he estimates a small leases of 2,500 square feet and less mium for designer fixtures and “lots ings such as 100 Wall St., which it space can be ready for a new occupant prohibitively expensive for a small have accounted for 52% of the total of glass.” bought last year.There,Savanna re- in three weeks at 370 Lexington Ave. tenant in a property like the space leased, according to Marisa Many landlords are also keen to cently split a 19,000-square-foot Sherwood bought the building for Empire State Building. Manley, president of Commercial cut the risk of being left holding the floor into three units. $155 million in 2008 to meet what “We build state-of-the-art Tenant Real Estate Representation bag if a large anchor tenant flops. “Obviously, large tenants often Chief Executive Jeffrey Katz antici- energy suites we know we’ll have Ltd. That is up from 36% in 2008. At the two-building property at have better credit than small ten- pated would be demand for Class A use of for the next 30 years,” Conversely, deals—including re- 28-40 W. 23rd St., owners, includ- ants,” said Nicholas Bienstock, space among smaller tenants. As it he said. “When confronted with newals—for upwards of 75,000 ing a group of principals at the New managing partner at Savanna.“That turned out, he was right. Occupancy having to update and invest, you square feet slipped to just 2% of the York office of Colliers Internation- being said, I would hate to be reliant in the building,which dipped to 86% don’t want to spend the money total, from 3% in 2008, she said, cit- al, found that out the hard way in on a business plan for a building that after the financial crisis, is now just for a 1,200-square-foot tenant.” ing her own analysis of CoStar 2008.That is when their largest ten- is dependent on securing a large south of 100%. Ⅲ —STEPHEN KLEEGE Crain’s Health Care Big Data, Symposium: Big Opportunities Hip crowd shapes triangle Health care information technology is changing DATE: Continued from Page 13 “We’re seeing a num- fast, and entrepreneurs have an unprecedented Tuesday space outside midtown. ber of buildings turning opportunity to deliver innovations to hospitals, November 13, 2012 Some landlords say that the their penthouses or even doctors, providers and insurers. Join Crain’s Fumihiko Maki-designed build- multiple units into these New York Business at a thought-provoking VENUE: ing—where asking rents are expect- super-high-level spaces gathering of HIT innovators, start-ups and the Sheraton New York ed to rise as high as $115 a square with jaw-dropping price New York health care community at Crain’s Hotel & Towers foot—is helping to elevate every- tags,” said Anthony 811 Seventh Avenue one’s sights. In 2008, the developer Lolli, chief executive of Health Care Symposium: Big Data, Big @ 53rd Street Opportunities. bought the property for $100 mil- Rapid Realty Franchise. lion from Cooper Union,the college TIME: that has dominated the local land- ‘Always busy’ /PENING+EYNOTE$ISCUSSION Networking Breakfast: )"-ON7ATSONOverview of the system, impact, scape for more than 150 years. At the Astor Place implications and the opportunities 8:00AM – 8:30AM Since then, he’s razed the old Tower, a 21-story, 39- Program: building and begun work on a 13- unit condominium Speakers: 8:30AM – 11:30AM story,440,000-square-foot,granite- building, a three- s!*,ANG, Senior Vice and-glass office tower. Paul Glick- bedroom duplex pent-

President of Application Development, buck ennis WellPoint, Inc. man, a broker with Jones Lang BOLD ARRIVAL: Cooper Union’s newest building on Bowery. house with four and a half s$AN#ERUTTI, Vice President, LaSalle—which is heading leasing baths fetched $10 mil- IBM Watson Commercialization for the building—reports that sev- lion. Similarly, down on eral technology and digital-media New York City for the Washington Bond Street, the seven duplex con- A.J. Lang Dan Cerutti companies have expressed interest. state-based retailer. dos at 41 Bond, which were Panel Discussions: COST TO ATTEND: Many other landlords in the area, For smaller retailers as well, set- completed last year, are sold out— Innovative Health Care Managers $250 for individual ticket(s); early bird however, are pinning their hopes on ting up shop in the triangle brings a including one that the CEO of Panelists: price expires on September 21, 2012; much the same audience. kind of cachet.With few storefronts Tommy Hilfiger bought for $7 s.EIL3#ALMAN -$ $300 regular ticket price. “The creative vibe here is more to be had, especially along Bowery, million. President and CEO, The Institute for Family Health $2,500 for table(s) of 10; early bird suitable for those companies,” said asking rents are on the rise. They Meanwhile,several boutique ho- s#HARLES%3ANDERS -$ price expires on September 21, 2012; Mr. Meringoff.“They don’t want to range from $80 to $125 per square tels on Bowery, including the Bow- Chief Executive Officer of Emerging Businesses, Aetna $3,000 regular ticket price. Additional Panelists to be Announced. rub elbows with the suits in the foot (up from $45 to $50 five years ery Hotel and the Standard, have For more information, call the %VENTS elevators of traditional midtown ago),according to Faith Hope Con- been attracting a hipster overnight The Innovators Hotline at 212-210-0739. Panelists: YOUMUSTBEPRE REGISTEREDTOATTENDTHISEVENT. buildings.” solo, chairman of the retail group at crowd at about $400 a night. One s3UNDEEP"HAM .OREFUNDSPERMITTED CEO, Medivo Prudential Douglas Elliman Real block west on Lafayette Place, the s$AVID"LUMENTHAL -$ -00 Retail cachet Estate. historic Public Theater has just Chief Health Information and Innovation Officer, Partners HealthCare For example, the Kushner Cos.’ Newcomers include Patagonia emerged from a $35 million renova- s-ARIA'OTSCH Puck Building—home to several Surf—the chain’s first outpost on tion that is helping to draw bigger President and CEO, New York City Investment Fund s#HAIM)NDIG Internet and media companies—is the East Coast—at 313 Bowery, crowds to neighborhood bars and CEO, Phreesia PLATINUM SPONSOR: charging $65 per square foot fol- and fashion-apparel stores DIGS, eateries. Additional Panelists to be Announced. lowing its $10 million makeover. at 284 Lafayette St., and Intermix, Marko Zivkovic, restaurant REGISTER TODAY: Since December, a new 35,000- reportedly eyeing a space on Bond manager of the Gemma, located in crainsnewyork.com/events-healthcaretech square-foot REI sporting-goods Street. the lobby of the Bowery Hotel, said /RCALLTHE%VENTS(OTLINEAT   store has been drawing an out- Prices for residential units are his business has grown more than For sponsorship opportunities, please contact Trish Henry doorsy crowd to the building’s also rising despite the lackluster 12% in the past year alone. “We are at 212-210-0711 or [email protected] ground level. It’s the first foray in economic backdrop. always busy,” he said. Ⅲ

14 | Crain’s New York Business | September 17, 2012 20120917-NEWS--0015-NAT-CCI-CN_-- 9/13/2012 5:40 PM Page 1

THE NY’s Largest Real Estate Investment Trusts LIST Ranked by total square footage owned in the New York area

SOLID     %    GROWTH !" !"     (# !"    #$ $% #$ $%                REIT total return index           %    %  &'  &'       %   19% )*+,-).,/01*230           &TgPcdTQTPI 9PgPYeS#gP hhhgY`H`X  ) ) 17%  5PhD`cV5D 0%)#'2 %& #8%09'220 15% *..+.,/01)*4            6QQTHPd 13% 3PiTYRe`Y#gP hhhdWRcPPYH`X ) )  5PhD`cV5D #7% 5220&#C 11% 16.9% ,56,/7.,/01)*4               6QQTHPd 9% @S`cYFWW9e hhhXFHVHFWTH`X ) )  'ITd`Y52 09%)'22 & '78) 7% )30)+*)4.*07.3+5 8          6QQTHPd 5% $`pWde`Y9e hhhG`de`Yac`aPceTPdH`X ) ) 3%  $`de`Y4# 57903'7 &"@%1'73#4 0.0% 1% 79)+*)4.*01*)24+5         8PRT`YFW CCFdSTYRe`Y9e hhhdTX`YH`X ) ) XFWWd -1%  1YITFYFa`WTd15 %#A0& & 0354 12/30/11 8/21/12 :,/)+,1)992+707.3+5                4fWeT Source: SNL Financial 5)WPGP8`FI hhhFgFW`YGFpH`X ) ) QFXTWp  #cWTYRe`YB# 0359)C & #@()954 ;2701.37-.+07,/  !          4fWeT YTD total return by sector 58TgPcdTIP7WFqF hhhPbfTepFaFceXPYedH`X ) ) QFXTWp %STHFR`13 %#A0&& '09)'7%@9 Shopping centers  +26.0% *)/)<73+5 "           1YIfdecTFW Regional malls 7TPc$Fp hhhac`W`RTdH`X )  ) +25.0%  9FY(cFYHTdH`%#  #30&& 5()# Industrial !#29'7 & #15B0%)  +20.9% #795).,/01)*4 #          9S`aaTYR Diversified/other 5Ph0pIP7FcV8`FI hhhVTXH`cPFWepH`X  ) ) HPYePcd +17.2% 5Ph0pIP7FcV5D %#A0&& '47C All equity REITs +16.9% $)9.*)4.*07.3+5 $          4fWeT Health care %WTYe`Y9bfFcP hhhS`XPac`aPceTPdH`X ) ) QFXTWp +15.6%  8`HSPdePc5D &B#7&& '9904'22# Offices =0*,4,5.0)*,<.+5  8         9PWQde`cFRP +14.2%  '%`ee`Yh``I7FcVhFp hhhPiecFdaFHPH`X ) ) Self-storage 9FWe3FVP%TepA@ 6'4%'7 & 071 +12.3%  Manufactured homes %"+5 %"        4fWeT +11.5% 9SPF%PYePc&cTgP hhhfIcH`X  ) ) QFXTWp Hotels  0TRSWFYId8FYHS%6 )53#8 !& 553'C +9.9% 5,-7,.,/01*230  #         9S`aaTYR Multifamily 4FXFc`YPHV#gP hhhFHFITFcPFWepH`X ) ) HPYePcd +8.5%  CSTeP7WFTYd5D '44'9) & '7489'04 Source: SNL Financial ,2>9,+.+0.*3+5            8PRT`YFW '3`YR3FVP8`FI hhheFfGXFYH`X ) ) XFWWd  $W``XQTPWI0TWWd41 5$'79& #@$3#4 Dividend yield by sector %*30,-07--/.*)4.*07.3+5 %           9S`aaTYR 8FTWc`FI#gP hhhfGac`aPceTPdH`X ) ) HPYePcd Health care )cPPYhTHS%@ )#72'8 & 789#&9 4.8%  Shopping centers ,+<.*&,50)*120/.0.+0.*3+5 #           6feWPe 3.7% 5`ceSWTYP#gP hhheFYRPc`feWPeH`X ) ) HPYePcd Manufactured homes  )cPPYdG`c`5% 9'A'4& #4('7 3.6% 2>/750)*,<.+5           9PWQde`cFRP Industrial CPdePcY#gP hhhafGWTHde`cFRPH`X ) ) 3.4% )WPYIFWP%#  54#2&&#A4'77& Offices  3.4% 7.-9)+0??75..,/01*230+5 "           6QQTHPd All equity REITs  2`SYd%cPPV7FcVhFp hhhaTPIX`YecPTeH`X ) ) 3.3%  2`SYd%cPPV)#  %54#2&'& 022'7 Diversified/other /795@.*.,/01*230             8PRT`YFW 3.1% '$c`FI9e hhhRWTXHSPcH`X  ) ) XFWWd Self-storage 3.0% %`WfXGfd60 0%)#'2 & (203%)'7  Multifamily 7).-.,/01*230+5            6QQTHPd 2.9%  $PcYFcI`%PYePc&cTgP hhhGT`XPIcPFWepH`X ) ) Hotels  9FY&TPR`%#  '2#4 %& (52& 2.9% 4,*09.+0+:.309.+0,+-,+,<.9.+0)           4fWeT Regional malls 2.8%   hhhFTXH`H`X ) ) QFXTWp 9AWdePc9ecPPe7FcVhFp '77C 5480&04' Source: SNL Financial  &PYgPc%6 /.=,+-.*'3+5  8           8PRT`YFW 8`feP'Fde hhhFWiTYHH`X ) ) XFWWd Median funds-from-operations  7FcFXfd52 9'A'4 59) growth by sector )99)+A.,/0@  A$            6QQTHPd CFdSTYRe`Y9e hhhHhScPTeH`X )  ) Manufactured homes +38.2%  5Phe`Y4# r Multifamily +19.5% &7*30.,/ 30,0.+:.309.+0*230)?.B(.*3.1        &TgPcdTQTPI Shopping centers +18.2% &  hhhQcPTeYUH`X ) ) 4FTY9e 5$'79& '1'30#47& Self-storage +14.1%  0FHVPYdFHV52 Regional malls +12.8% &.-.*,/.,/01+:.309.+0*230 &           9S`aaTYR All equity REITs +7.9% '2PQQPcd`Y9e hhhQPIPcFWcPFWepH`X ) ) HPYePcd Health care +5.0%  8`HVgTWWP4& %54#2&&!55& Hotels +2.5% 9`fcHP!953(TYFYHTFW%SFcW`eePdgTWWPBF hhhdYWH`XcPFWEPdeFeP"FIITeT`YFWcPdPFcHSGp9fqFYYP7FYFcFFYI'XTWp3FPcXPc 5Ph D`cV FcPF TYHWfIPd 5Ph D`cV %Tep FYI 5FddFf 9fQQ`WV FYI CPdeHSPdePc H`fYeTPd TY 5Ph D`cV FYI $PcRPY 'ddPi 0fId`Y FYI AYT`Y H`fYeTPd TY 5Ph 2PcdPp @` bfFWTQp Q`c eSTd WTde F H`XaFYp Xfde GP F afGWTHWp ecFIPI Diversified/other -6.0% 8'1@ eSFe `hYd H`XXPcHTFW ac`aPcep TY eSP 5Ph D`cV FcPF 4`ceRFRP 8'1@d S`ePWQ`HfdPI 8'1@d FYI `eSPc H`XaFYTPd eSFe `hY `YWp S`ePWd FcP Y`e TYHWfIPI 7c`aPcep H`fYe FYI dbfFcP Q``eFRP cPa`cePI TYHWfIP ac`aPceTPd TY hSTHS 8'1@d XFp S`WI F XFU`cTep `c F XTY`cTep PbfTep TYePcPde 9bfFcP Q``eFRP SFd GPPY cPa`cePI Gp e`eFW GfTWITYR dTqP FYI Td Y`e FIUfdePI Q`c XTY`cTep`hYPcdSTa TYePcPde #gPcFRP dTqP Q`c XfWeTQFXTWp fYTed SFd GPPY Offices -6.3% PdeTXFePI Fe  dbfFcP QPPe 8PgPYfP QTRfcPd FcP Q`c HFWPYIFc pPFc 'iPHfeTgPd XFp SFgP FIITeT`YFW eTeWPd $FdPI `Y X`de cPHPYeWp cPa`cePI dbfFcP Q``eFRP QTRfcPd Q`c ac`aPceTPd `hYPI Fd `Q 2fWp   #d `Q &PH   (TRfcPd SFgP Y`e GPPY FIUfdePI Q`c ITdH`YeTYfPI `aPcFeT`Yd TY  #d `Q 9Pae   1YHWfIPd ac`aPceTPd fYIPc IPgPW`aXPYe Fd `Q #fR   %`HSTPQ PiPHfeTgP 5` dPYT`c XFYFRPc S`WId eSP eTeWP `Q HSTPQ Industrial -17.7% PiPHfeTgP Source: SNL Financial

September 17, 2012 | Crain’s New York Business | 15 20120917-NEWS--0016-NAT-CCI-CN_-- 9/13/2012 7:17 PM Page 1

REPORT REAL ESTATE DEALS

to spearhead its new commercial BARE BONES brokerage division, helped Golden Golden Lioness Lioness in the deal. —amanda fung bags big tenant Law firm extends 22-floor lease XA Advisors, an arm of the behemoth AXA Financial Inc., is coming to downtown Brooklyn. Davis Polk & Wardwell will be ex- The financial services provider to individuals and small busi- tending its stay at 450 Lexington Ave., nesses has taken almost 5,500 square feet at 32 Court St., a pre- where it occupies 22 floors, by five war office building near Remsen Street. The 10th-floor space years. That means it will remain at Ais currently under construction and will be completed at the end of October. the 40-story tower, which RXR A spokeswoman for AXA Advisors said the new space will be a sales of- Realty officially bought last week for fice connected to a retail location on Long Island. It’s unclear if it’s the com- about $700 million, for 15 years in- pany’s first-ever office in Brooklyn.“We’ve been in business 150-plus years, stead of 10. 1301 SIXTH AVE. 589 FIFTH AVE. 350 FIFTH AVE. so we may have had a Brooklyn office at some time in our history,” she said. The deal was a coup for RXR be- (Empire State Building) AXA Advisors signed a five-year lease, according to Brad Leader of cause the 675,000 square feet occu- ASKING RENT; TERM: ASKING RENT; TERM: Undisclosed; 20 years Undisclosed ASKING RENT; TERM: Golden Lioness Corp., the owner and manager of 32 Court St. The asking pied by Davis Polk account for about $55; 15 years rents, which depend on the floor and view at the 23-story building, are in 73% of the 920,000-square-foot SQUARE FEET: 200,000; SQUARE FEET: 57,000; the low to mid-$30s per square foot. property. 22nd through 27th floors ground through fifth floor SQUARE FEET: 42,000 and basement on 70th and part of “In the past, we had attorneys and nonprofits; now we have some young The extension came as RXR was TENANT; REPS: 71st floors hedge funds, real estate and architecture firms, media and public relations negotiating to close its deal to buy Chadbourne & Parke; TENANT; REP: H&M; Moshe Sukenik and Chris Thomas Citron of TENANT; REPS: Kaltex firms,” said Mona Gora, head of Golden Lioness. “The building’s [tenant the building and as Davis Polk was Mongeluzo of Newmark Cushman & Wakefield North America; Michael roster] has really diversified over the past two to three years.” working to resolve its litigation Grubb Knight Frank Goldman and Chip against the building’s former owner, LANDLORD; REP: Conklin of Studley LANDLORD; REPS: Western Management; Since the beginning of the fourth the property more of a loft-like feel- Dubai-based Istithmar World Cap- Paramount Group; in- Jedd Nero of CBRE LANDLORD; REPS: quarter of 2011, the landlord has ing.“It’s a fabulous boutique building ital.RXR settled on the details of the house by Ted Koltis and W&H Properties; William Heather Kahn BACK STORY: The trendy Cohen and Ryan Kass of leased 18,497 square feet in the in downtown Brooklyn,” she said. new lease, and the litigation was fast-fashion retailer is building.With AXA Advisors mov- William O’Brien of Brooklyn subsequently settled. Newmark Grubb Knight BACK STORY: Law taking the space for Frank ing in shortly, the 115,000-square- commercial brokerage M.C. RXR Chief Executive Scott firm will replace its new flagship foot building will be 95% occupied. O’Brien Inc., along with Jones Lang Rechler declined to say how much bankrupt Dewey & store in one of the BACK STORY: After more Ms.Gora said she continues to in- LaSalle, represented AXA Advisors Davis Polk would pay under the new LaBoeuf and has also largest retail deals than 30 years in building, secured expansion rights this year. the unit of Mexican textile- vest in upgrading the building. That in the deal, while Christopher deal. CBRE broker Lewis Miller in the tower, according maker Grupo Kaltex has includes exposing the ceiling beams Havens, who recently joined resi- represented Davis Polk. to the Commercial added 35,000 square in spaces that become available to give dential brokerage Aptsandlofts.com —theresa agovino Observer. feet, starting in 2013.

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16 | Crain’s New York Business | September 17, 2012 20120917-NEWS--0017-NAT-CCI-CN_-- 9/13/2012 5:31 PM Page 1

FOR THE RECORD

on Oct. 9 for the renovation of The tenant represented itself in the deal. ● SL Green Realty Corp. (SLG) Downtown Art and Alpha Omega The landlord, the Moinian Group, was Stephen L. Green, chairman, exercised ABOUT THIS SECTION Dance Theatre. There will be a represented by Cushman & Wakefield options on 147,000 shares of common FOR THE RECORD is a weekly listing of information from the public record that mandatory prebid conference on Sept. Inc.’s Jonathan Fales, Myles Fennon, stock at $28.10 between Aug. 9 and can help businesspeople in the New York area find opportunities, potential 26 at 10 a.m. at the Downtown Art and Andrew Sachs and Ben Shapiro. The Aug. 10, in a transaction worth Alpha Omega Dance Theatre, located at asking rent was $56 per square foot. $4,130,700. During the same period, new clients and updates on competitors. 70 E. Fourth St. Bid documents are he sold 147,000 shares of common To ask questions or get more information on this section, contact Crain’s available at www.nyc.gov/ddc and ● The Museum of Mathematics signed stock at prices ranging from $80.37 to research department at [email protected]. require a $35 deposit. Only a company a lease for 4,000 square feet at 134 W. $81.09, in a transaction worth check or a money order is accepted. For 26th St. The nonprofit will occupy an $11,891,430. He now directly holds more information, contact Ben Perrone office space in the building. Both the 28,453 shares. at (718) 391-2614. tenant and the landlord, President NEW IN TOWN $50 million and estimated assets of Realty, were represented by Savitt ● Estée Lauder Cos. (EL) $10,000,001 to $50 million. The ● Department of Parks and Recreation Partners’ Hector Rodriguez. The asking Ronald S. Lauder, chairman of Clinique Companies that would like to have details creditors with the largest unsecured Seeks competitive sealed bids by 10:30 rent was $36 per square foot. Laboratories, sold 2,000,000 shares of of openings published should submit claims are WCC Builders, owed a.m. on Oct. 2 for the reconstruction of common stock at prices ranging from descriptions following this format to $950,000; Lazer Marble & Granite the spray shower in the wading pool at RETAIL $59.68 to $60.76 between Aug. 22 and [email protected], with Corp., owed $180,000; and Koolrite the bathhouse in Sunset Park, located on ● Charles P.Rogers signed a 10-year Aug. 29, in a transaction worth “New in Town” in the subject line. Cooling Corp., owed $120,000. Seventh Avenue, between 41st and 44th lease for 7,700 square feet at 26 W. 17th $119,964,248. He now directly holds streets, Brooklyn. Bid documents are St. The bed and bedding store will 53,720 shares. ● The Bat Haus ● Holsted Marketing Inc. available for $25 in the blueprint room, occupy space on three floors. The tenant 279 Starr St., Brooklyn 135 Madison Ave., Manhattan Olmsted Center, Flushing Meadows was represented by Cushman & Grat Remainder Trust sold 200,000 The co-working space opened in Filed for Chapter 11 bankruptcy Corona Park, Queens, from 8 a.m. to Wakefield Inc.’s Michael Burgio, shares of common stock at prices Bushwick. The location will offer protection on Aug. 28. The filing cites 3 p.m. The fee is payable by company Michael Gambino and Alan ranging from $60.02 to $60.52 between conference rooms and independent estimated liabilities of $1,000,001 to check or money order to the City of Schmerzler. The landlord, the Winter Aug. 21 and Aug. 27, in a transaction workspace for freelancers. $10 million and estimated assets of New York, Parks and Recreation. To Organization, was represented by worth $12,048,066. It now indirectly $1,000,001 to $10 million. make inquiries, contact Juan Alban at Cushman & Wakefield’s Michael holds 928,666 shares. ● Ristorante Rafele (718) 760-6771 or juan.alban@ O’Neill and Gene Spiegelman. The 29 Seventh Ave. South, Manhattan ● James G. Kennedy & Co. parks.nyc.gov. asking rent was $275,000 per year. ● Ann Inc. (ANN) The restaurant opened in the West 215 E. 38th St., Manhattan Katherine Lawther Krill, president, Village. The menu will feature classic Filed for Chapter 7 bankruptcy GOODS AND SERVICES chief executive and director, exercised Neapolitan fare. protection on Aug. 28. The filing cites ● Department of Education STOCK TRANSACTIONS options on 476,767 shares of common estimated liabilities of $10,000,001 to Seeks competitive sealed bids by 4 p.m. on stock at prices ranging from $19.58 to ● Teavana $50 million and estimated assets of Sept. 27 for the provision of an interactive Following are recent insider transactions at $30.12 between Aug. 17 and Aug. 21, in 1291 Lexington Ave., Manhattan $1,000,001 to $10 million. The creditors Web-based learning module.To obtain New York’s largest publicly held companies a transaction worth $11,825,664. The tea retailer opened on the Upper with the largest unsecured claims are bid documents or make inquiries, email filed with the Securities and Exchange During the same period, she sold East Side. It is the first Manhattan Unity Electric Co., owed $2,311,916; [email protected] or call Commission by executives and major 491,767 shares of common stock at location for the Atlanta-based company. Anderson Interior Contracting, owed (718) 935-2300.The bid opening date is shareholders. Listings are in order of prices ranging from $28.14 to $34.46 in $1,332,635; and Mehl Electric Co., Sept. 28 at 11 a.m. transaction value.The information was a transaction worth $15,513,651. She ● Vince owed $1,083,045. obtained from Thomson Reuters. now directly holds 286,011 shares. 980 Madison Ave., Manhattan ● Housing Authority The designer label opened a flagship ● Mobile Expansion Group of Ditmars Inc. Seeks competitive sealed bids by 10:40 ● Sirius XM Radio (SIRI) ● Forest Laboratories Inc. (FRX) store on the Upper East Side. It is its 31-13 Ditmars Blvd., Queens a.m. on Sept. 27 for the furnishing of Liberty Interactive Corp. purchased Carl C. Icahn purchased 331,406 shares third location in Manhattan. Filed for Chapter 11 bankruptcy digital video recording, or DVR, for 65,332,390 shares of common stock at of common stock at prices ranging from protection on Aug. 31. The filing cites closed-circuit television. To make prices ranging from $2.52 to $2.53 $34.64 to $34.65 between Aug. 27 and estimated liabilities of $0 to $50,000 and inquiries or to obtain the bid documents, between Aug. 24 and Aug. 31, in a Aug. 29, in a transaction worth COMPANY MOVES estimated assets of $0 to $50,000. contact Atul Shah at (718) 707-5450 or transaction worth $164,973,248. It now $11,483,177. He now indirectly holds at [email protected]. indirectly holds 522,199,008 shares. 30,198,900 shares. Ⅲ Companies that would like to have details ● SoHo Billiard Sports Center Inc. of recent moves published should submit 298 Mulberry St., Manhattan ● Human Resources Administration descriptions following this format to Filed for Chapter 11 bankruptcy Requests proposals by 2 p.m. on Oct. 2 [email protected], with protection on Aug. 31. The filing cites for Jobs-Plus technical assistance and DEALS ROUNDUP “Company Moves” in the subject line. estimated liabilities of $500,001 to $1 training. To make inquiries or to request million and estimated assets of $50,001 bid documents, contact Thomas Harper ● Broadway Technology to $100,000. The creditor with an at (212) 331-5828 or harpertha@ TRANSACTION SIZE 140 Broadway, Manhattan unsecured claim is Chase, owed hra.nyc.gov. SELLER/TARGET (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE The financial technology services $42,841. Visium Asset Management $3,158.4 Valeant Pharmaceuticals International Inc. SB M&A company moved its headquarters in the (Manhattan)/Medicis financial district. Its previous location ● Three on Two Fourteen REAL ESTATE DEALS Pharmaceutical Corp. was 11 Broadway. 214 Richardson St., Brooklyn American Realty Capital $2,863.9 Realty Income Corp. SB M&A Filed for Chapter 11 bankruptcy Companies that would like to have details (Manhattan)/American ● 16 Handles protection on Sept. 4. The filing cites of their recent transactions appear in these Realty Capital Trust Inc. 178 Eighth Ave., 428 Third Ave., estimated liabilities of $1,000,001 to listings should email descriptions following American International $2,022.1 Not disclosed (4.91%) SB M&A Manhattan $10 million and estimated assets of this format to ELaermer@crainsnewyork Group Inc. (Manhattan)/ The ice cream chain opened locations in $1,000,001 to $10 million. The creditors .com, with “Real estate transaction” in the AIA Group Ltd. Chelsea and Murray Hill. The company with the largest unsecured claims are subject line, or enter them online at Court Square Capital $1,067.8 Onex Corp., management of SGS FB M&A now has eight Manhattan stores. 189 Avec Moi, owed $2,000,000; Daniel crainsnewyork.com/submitadeal. Deals are Partners (Manhattan)/ International Inc. Ben Susan, owed $400,000; and Rolen listed in order of square footage. SGS International Inc. ● Blossom Du Jour Sabat, owed $150,000. Hess Corp. (Manhattan)/ $1,000.0 ONGC Videsh Ltd. SB M&A 617 Ninth Ave., Manhattan COMMERCIAL Azeri Chirag Guneshli (unknown minority stake) The vegan fast-food chain opened a ● C+T International signed a lease for Fields and Baku-Tbilisi store on the West Side. Its other location GOVERNMENT CONTRACT 18,500 square feet at 52-35 74th St. in Goldman Sachs Group $277.9 Entertainment One Ltd. SB M&A is at 174 Ninth Ave. OPPORTUNITIES Elmhurst, Queens. The manufacturer merchant banking division will occupy part of an industrial-use (Manhattan), Investissement ● Wilmer Cutler Pickering Hale and Dorr Following are selected contract building. The tenant was represented by Quebec investment/ Alliance Films Inc. 7 World Trade Center, Manhattan opportunities recently announced by New Kalmon Dolgin Affiliates’ Linda Wong. The law firm moved to the financial York City agencies.To learn how to sell The landlord, Traditional Casket Corp., Not disclosed/ $80.0 J.P. Morgan Asset Management Inc. GCI district. Its previous location was at 399 goods and services to city government, visit was represented by Kalmon Dolgin KupiShoes (Manhattan) Park Ave. www.nyc.gov/selltonyc. For a searchable Affiliates’ Vincent Lopez and Jacques Not disclosed/ $33.1 The Related Cos. (Manhattan) SB M&A database of current procurement notices, Wadler. The asking rent was KSW Inc. visit www.nyc.gov/cityrecord. Listings are undisclosed. Anadarko Petroleum Corp./ $21.0 Warren Resources Inc. (Manhattan) SB M&A BANKRUPTCIES alphabetical by category and department. Anadarko Petroleum Corp.’s (unknown minority stake) ● LivePerson signed an eight-year lease Spyglass Hill unit, Catalina The following listings are selected from the CONSTRUCTION SERVICES for an additional 18,500 square feet at unit and midstream assets most recent available filings by companies ● Department of Environmental Protection 475 10th Ave. The tech firm already LLM Management Co./ $14.0 Cherokee Inc. SB M&A seeking bankruptcy protection in the Seeks competitive sealed bids by 11:30 occupies 18,500 square feet in the Elizabeth Lange Southern and Eastern Districts of New a.m. on Oct. 9 for the replacement of the building. The tenant was represented by Undisclosed/Plaza $12.4 Katz Properties (Manhattan) SB M&A York. Information was obtained from U.S. main sewage pumps and piping at the the Kaufman Organization’s Grant 352 Shopping Center Bankruptcy Court records available on Bowery Bay Wastewater Treatment Greenspan and Michael Kaufman. The Undisclosed/ $9.1 Union Square Ventures (Manhattan) GCI Public Access to Court Electronic Records. Plant in Queens. There is a bid landlord, 530 Adler Realty, was Pollen Inc. Listings are in alphabetical order. document fee of $100. For more represented by the Adler Group’s Kristin Selected deals announced for the week ended Sept. 8 involving companies in metro New York. information or to obtain bid documents, Fisher. The asking rent was $35 per FB M&A: Financial buyer M&A represents a minority or majority acquisition of existing ● Emmons-Sheepshead Bay Development contact Greg Hall at (718) 595-3236 or square foot. shares of a company with the participation of a financial buyer. GCI: Growth capital investment 3112-3144 Emmons Ave., Brooklyn [email protected]. represents new money invested in a company for a minority stake. SB M&A: Strategic buyer Filed for Chapter 11 bankruptcy ● Media3 signed a seven-year lease for M&A represents a minority or majority acquisition of existing shares of a company without the protection on Aug. 30. The filing cites ● Department of Design and Construction 7,300 square feet at 535 Fifth Ave. The participation of a financial buyer. source: capitaliq estimated liabilities of $10,000,001 to Seeks competitive sealed bids by 2 p.m. tech company will occupy the 13th floor.

September 17, 2012 | Crain’s New York Business | 17 20120917-NEWS--0018-NAT-CCI-CN_-- 9/13/2012 5:35 PM Page 1

IN THE BOROUGHS QUEENS The Durst Organization Soccer has a plan Continued from Page 3 eight acres of wetlands owned by the Welcomes finally picked Flushing Meadows in Metropolitan Transportation Au- June.The plan calls for the league to thority adjacent to the Corona Yard, The City University of New York fund the building of the stadium for where the agency stores 7-line sub- use by its new, 20th team. (It would way cars. The land lies along the be the second MLS team in the area; park’s western edge. Office of the Chancellor to the Red Bulls, who play in New Jer- “I believe Major League Soccer sey,are the other.) Sources said con- intends to do the right thing when it struction could begin as soon as next comes to parkland,” said Mr. Moya. 205 East 42nd Street. year, and that it could be completed “I am optimistic.” in time for the opening of MLS’sea- Others say a stadium could actu- son in spring 2014. ally lure more people to Flushing The $300 million stadium would Meadows. “Anything that increases Our appreciation to Studley, Inc.—Ira Schuman, be constructed on the site of what is foot traffic in the park is a positive,” officially known as the Pool of In- said Ray Collins, executive director Daniel Horowitz, Kurt Handschumacher and dustry. It was built for the 1964 of the Queens Theatre, which is Richard Eaddy —for this 163,000 s.f. transaction. World’s Fair, and once featured a housed in part of what was once the fountain that sent 10,000 tons of 1964 fair’s New York State Pavilion. water soaring as high as 150 feet into “The park is an undiscovered jewel the air each night,accompanied by a that only people in Queens know.” dazzling light show and crashing Backers also note that the bor- fireworks displays. Today, the pool ough’s status as the most interna- boasts only a few fish and, on occa- tional in the city—with 48% sion, some geese and ducks. foreign-born—makes it an ideal place for a soccer stadium. Concern for parkland “Soccer is a global game,” said Since picking Flushing Mead- Ricardi Calixte, a director at the ows,MLS has been meeting with lo- Queens Economic Development cal, city and state officials to iron out Corp., adding that residents in the an agreement that would allow the surrounding neighborhood of 205 E 42 league to take over the city-owned Corona come from Ecuador, Mexi- parkland in exchange for creating an co, Colombia, Peru and the equal amount elsewhere.To sweeten Dominican Republic. “The local the deal, MLS has agreed to refur- community loves soccer.” bish the park’s nine well-used soccer In fact, the park’s nine amateur Rental and Leasehold Condominium Opportunities Available fields.Furthermore,sources said,the fields are used by 44 local leagues league is working out an arrange- and teams, many fielding predomi- Please contact Tom Bow [email protected] 212-257-6610 www.durst.org ment with the New York Mets to nantly international rosters. “It Brandl Frey [email protected] 212-257-6590 share its parking facility so it would would be nice to have a stadium and not have to build its own.Therefore, a new team to watch,”said José Cap- soccer and baseball games would not tullin,who for 25 years has served as overlap. But scoring the necessary a referee for two soccer leagues that city and state approvals will still take play in the park three days a week. a lot of fancy footwork. Others note that the stadium will Despite its current state,park ad- boost business at establishments near vocates said, razing such a relic as the park. On days the Mets play at the 25,000-square-foot Pool of In- Citi Field, on the far side of Roo- dustry is an egregious error. sevelt Avenue and the 7-line tracks, “They need to find a home for business typically soars 30%, accord- the stadium that does not displace ing to Salomon Ramos, the manager valuable parkland,” said Geoffrey of Tortilleria Nixtamal, a Mexican Croft, president of NYC Park Ad- restaurant in Corona.The restaurant vocates. “We have seen many acres shows soccer games on its three tele- of park taken away for commercial vision screens.When he learned that purposes.” someday professional games could be To allay such concerns, city offi- played in a new stadium in Flushing cials are proposing to add identical Meadows Park, Mr. Ramos was in- amounts of public space nearby. stantly onboard with the idea. “That One of the options is adding nearly would be awesome,” he said. Ⅲ

Now moored in its new home, FROM Hunters Point’s Anable Basin, the AROUND vessel boasts a 100- by 39-foot open-air deck that lends itself to THE CITY outdoor seating, not to mention drinking, according to Matt QUEENS Quigley, a Plaxall vice president. Its enclosed spaces near the bow will Beery rebirth eyed likely be converted into a bar area. If all goes to plan, the “garden” for retired ferry will open next summer. And the A plastics turned real estate compa- time is right, Mr. Quigley said. ny in Long Island City is planning to More residential towers are sprout- convert a passenger ferry into a beer ing in the former industrial area,and garden on the waterfront in the waterfront parks are drawing more neighborhood’s Hunters Point sec- people to the riverfront.Meanwhile, tion.After a yearlong search,family- places like Astoria’s venerable Bo- run Plaxall finally stumbled across hemian Hall & Beer Garden are what it was looking for in Rhode Is- drawing big crowds without the land: a retired 60-year-old Prudence benefit of spectacular views across Island ferry that in recent years was the river. used to transport building materials. —ken m. christensen 20120917-NEWS--0019-NAT-CCI-CN_-- 9/13/2012 7:13 PM Page 1

MTA chief feels your pain—kinda

The MTA will release its projec- He also warned of “severe and ex- $1.8 billion a year, Mr. Lhota said. Lhota wants cold tions in October, Mr. Lhota said, treme” service cuts if a judge’s ruling While he expressed confidence trains and hard cash and convene a series of public hear- blocking the 0.34% payroll tax on that the ruling would be overturned ings.The MTA board is expected to larger businesses in the MTA’s 12- on appeal, he struck a conciliatory for aging system vote on the proposed hikes in De- county region is not overturned by the tone on the issue. The payroll tax is cember. state’s Court of Appeals.The results, deeply unpopular among suburban BY ANDREW J. HAWKINS The base fare for subway and bus- he added, could be “catastrophic.” businesses. Mr. Lhota said the es is $2.25, but Mr. Lhota said the MTA needed to do a better job of What’s the most annoying part of MTA receives an average of $1.63 Seeking business’s help communicating the importance of your commute? Crowded trains? per trip. The agency offers reduced- In August, a judge ruled the tax, maintaining its financial stability to Dirty stations? Freezing-cold sub- rate cards for seniors over 65.Seven- known as the payroll mobility tax, taxpayers. And he asked the busi- way cars? day unlimited cards currently cost unconstitutional. The ruling, if up- ness community to take up its cause.

Metropolitan Transportation $29, while 30-day unlimited cards held,could nullify not just the payroll “We need you on our side,” Mr. buck ennis Authority boss Joseph Lhota feels go for $104.“Do we need a discount tax but other revenue-raisers in the Lhota said. “We need you fighting NO AVERAGE JOE: Transit chief Joseph Lhota your pain. Some of it, at least. that deep?” Mr. Lhota asked. same legislation, and cost the MTA for the MTA.” Ⅲ holds court at a Crain’s breakfast last week. At a breakfast forum hosted last week by Crain’s New York Business, Mr. Lhota identified with many of straphangers’ irritations, but said some are just part of maintaining a transit system the size and age of New York’s.Others he called too ex- pensive to fix. When asked if there was hope for ridding the system of screeching subway-car noise,the chief executive said,“No hope.” He added,“They’re We’re changing not as loud as they used to be.” On two other common com- plaints—freezing cars and boiling- hot platforms—Mr. Lhota said lit- the way you tle could be done, noting that he especially appreciates cold trains. “You’re not going to get any move- ment from me on that,” he said. Gum on the platforms? “At least see solar energy. they’re not swallowing it.” The city’s subway system is more than 100 years old, and a little wear and tear is acceptable,he said.How- ever, Mr. Lhota said that he shared some of his customers’ annoyances. His bugaboo: peeling paint. “Scrape it off,keep it off.Exposed concrete looks just fine,” he said as if talking to his maintenance workers. Mr. Lhota admitted to tearing off strips of peeling paint himself but said he wouldn’t encourage it. “That would not be safe. Let the transit workers’ union do their job,” he said. “I don’t think the public should be carrying ladders down into the subway stations.” The Straphangers Campaign’s Gene Russianoff said “brutal crowd- ing and not enough service” should be added to the list of nuisances. ‘Mystifying’ Mr. Lhota also addressed the fare hike recently rescheduled for next March and the likelihood of slashing the system’s fare discounts. Lower Total Supports No Capital Straphangers who use unlimited-ride Energy Costs Sustainability Investment MetroCards or get other breaks may bear the brunt of the increase,he said. “We have enormous discounts in the system. And I think we need to look at those discounts,and we need A solar energy system that works for you. to have, on the entire fare issue, a public debate,” Mr. Lhota said to a Finally, a turnkey solar solution that has ROI written all over it. A Power Purchase Agreement with Constellation packed audience of nearly 500 busi- is the simple, savvy way to implement responsible, sustainable green solutions while making smart financial nesspeople at the Plaza Hotel. sense for you. No upfront capital required: we finance, design, construct, own and operate your project, “There are a lot of people in New giving you long-term convenience, results and peace of mind. Now that’s a smart investment. See more at York who think our pricing system www.constellation.com/solar. is mystifying. It shouldn’t be.” The MTA recently announced that it would delay a planned 7.5% fare hike until March and would re- store some of the service cuts made Brilliantly Simple. Powerfully Green. to subways and buses in recent years. But Mr. Lhota said debt service and rising health care and pension costs make a fare increase unavoidable.

September 17, 2012 | Crain’s New York Business | 19 nb38p20-22cl.qxp 9/14/2012 1:16 PM Page 20

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM EVENT PUBLIC & LEGAL NOTICES FREE NYC Divorce Forum Notice of Qualification of TRACYAN- NOTICE OF FORMATION OF Brian Notice of Qualification of West 46 Notice of Qualification of TRANS DERSONMETHOD.COM, LLC. Molloy, L.L.C. Articles of Organization Office LLC. Authority filed with Secy. HUDSON BROKERAGE, LLC. Join us for a complimentary question Authority filed with Secy. of State of filed with the Secretary of State of of State of NY (SSNY) on 8/7/12. Authority filed with Secy. of State of NY and answer forum with a panel of NY (SSNY) on 07/24/12. Office loca- NY (SSNY) on 6/26/2012. Office Office location: NY County. LLC (SSNY) on 08/21/12. Office location: specialists to discuss the legal, financial tion: NY County. LLC formed in location: NY County. SSNY has been formed in Delaware (DE) on 8/1/12. NY County. LLC formed in Delaware and emotional aspects of divorce. Delaware (DE) on 01/14/10. 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NOTICE OF FORMATION OF FSCSR - Ste. 4, Dover, DE 19901. Purpose: filed with the SSNY on 07/05/2012. YU, LLC. Arts of Org filed with Secy any lawful activities. NOTICE OF FORMATION of ZJNY PUBLIC & LEGAL Office loc: NY County. SSNY has of State of NY (SSNY) on 3/15/12. Holding LLC. Arts of Org. filed with been designated as agent upon Office location: NY County. SSNY Notice of Qual. of SM SoHo LLC, Auth. NY Secy of State (SSNY) on NOTICES whom process against the LLC designated as agent upon whom filed Sec’y of State (SSNY) 4/9/12. 08/01/2012. Office location: New may be served. SSNY shall mail process may be served and shall Office loc.: NY County. LLC org. in DE York County. SSNY is designated as Notice of Qual. of Metropolitan Real process to: Barzan Jafar, 108 W mail copy of process against LLC to 4/5/12. 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Ave., 26th Fl., NY, NY 10022. DE off. against it may be served. SSNY shall SIANEY, LLC. Arts of Org filed with designated as agent of LLP upon Name/addr. of each gen. ptr. avail. at addr.: CSC, 2711 Centerville Rd., mail process to the LLP at 1745 Secy of State of NY (SSNY) on whom process against it may be SSNY. Purp.: any lawful activities.. Wilmington, DE 19808. Cert. of LP Broadway New York, NY 10019-4368. 6/12/12. Office location: NY County. served. SSNY shall mail process to on file: SSDE, Townsend Bldg., Principal Office address: 1745 SSNY designated as agent upon Corporation Service Co., 80 State Notice of Qualification of St. Nicholas Dover, DE 19901. Name/addr. of Broadway New York, NY 10019-4368. whom process may be served and St., Albany, NY 12207-2543. Park Apartments LLC. Authority filed each gen. ptr. avail. at SSNY. Purp.: Purpose: Law Practice. shall mail copy of process against Purpose: Any lawful activity. with NY Dept. of State on 6/4/12. any lawful activities. LLC to principal business address: Office location: NY County. Princ. bus. Notice of Qualification of Near North 153 ESSEX ST., STE 5D, NY, NY Notice of Formation of MetroPark addr.: 340 Pemberwick Rd., Greenwich, Notice of Formation of William E. Partners, LLC. Authority filed with 10002. Purpose: any lawful act. Ventures LLC. Arts. of Org. filed CT 06831. LLC formed in DE on Bernstein LLC. Arts. of Org. filed with NY Dept. of State on 8/15/12. Office Secy. of State of NY (SSNY) on location: NY County. LLC formed in 2/9/10. NY Sec. of State designated Secy. of State of NY (SSNY) on NOTICE OF FORMATION OF IAIN 8/1/12. Office location: NY County. IL on 10/8/08. NY Sec. of State agent of LLC upon whom process 11/29/11. Office location: NY County. KENNEDY CONSULTING LLC. Arts of SSNY designated as agent of LLC designated agent of LLC upon against it may be served and shall SSNY designated as agent of LLC Org filed with Secy of State of NY upon whom process against it may whom process against it may be mail process to: c/o CT Corporation upon whom process against it may (SSNY) on 3/23/12. Office location: NY be served. SSNY shall mail process served and shall mail process to: System, 111 8th Ave., NY, NY 10011, be served. SSNY shall mail process County. SSNY designated as agent to: The LLC, 353 Third Avenue, Suite c/o CT Corporation System, 111 8th regd. agent upon whom process may to: c/o Leonard Rosen & Co. P.C., 15 upon whom process may be served. 308, NY, NY 10010. Purpose: any Ave., NY, NY 10011, regd. agent be served. DE addr. of LLC: 1209 Maiden Lane, Rm 505, NY, NY PO address to which SSNY shall lawful activity. upon whom process may be served. Orange St., Wilmington, DE 19801. 10038. 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Org filed with Secy of State of NY whom process may be served and SSNY to mail copy of process to Notice of Formation of Grant Park (SSNY) on 3/20/12. Office location: shall mail copy of process against Notice of Formation of 509 Fifth JS THE LLC c/o CSC, 80 State Street, Associates III, LLC. Arts. of Org. filed NY County. SSNY designated as LLC to principal business address: LLC. Arts. of Org. filed Secy. of State Albany, NY 12207. Purpose: Any with NY Dept. of State on 11/4/11. agent upon whom process may be 35 E 35th St., NY NY 10016. of NY (SSNY) on 8/27/12. Office lawful act or activity. Office location: NY County. Princ. served. SSNY shall mail process to: Purpose: any lawful act. location: NY County. SSNY designated bus. addr.: 340 Pemberwick Rd., c/o US CORP AGENTS, INC., 7014 as agent of LLC upon whom process Notice of Formation of PTSE Greenwich, CT 06831. Sec. of State 13th Ave., Suite 202, Brooklyn, NY NOTICE OF FORMATION OF PDL against it may be served. SSNY shall PROPERTY HOLDINGS LLC. Arts. designated agent of LLC upon whom 11228. Purpose: any lawful acts. Design, LLC. Arts of Org filed with mail process to: c/o The LLC, 500 of Org. filed with Secy. of State of NY Secy of State of NY (SSNY) on Fifth Ave., 54th Fl., NY, NY 10010. process against it may be served (SSNY) on 05/16/12. Office location: Notice of Formation of BRONX 6/26/12. Office location: NY County. Purpose: any lawful activity. and shall mail process to: c/o CT NY County. Princ. office of LLC: c/o OPPORTUNITY LLC. Arts. of Org. SSNY designated as agent upon Corporation System, 111 8th Ave., Vincent Marsden, 150 E. 52nd St., filed with Secy. of State of NY whom process may be served and Notice of Formation of BRP Vendors NY, NY 10011, regd. agent upon 16th Fl., NY, NY 10022. SSNY (SSNY) on 07/30/12. Office location: shall mail copy of process against Developer, LLC. Arts. of Org. filed whom process may be served. designated as agent of LLC upon NY County. Princ. office of LLC: 445 LLC to principal business address: with Secy. of State of NY (SSNY) on Purpose: any lawful activity. whom process against it may be Hamilton Ave., White Plains, NY 142 E 16th St, NY, NY 10003. 7/31/12. Office location: NY County. served. SSNY shall mail process to 10601. SSNY designated as agent of Purpose: any lawful act. SSNY designated as agent of LLC Notice of Qual. of SM SoHo Promote the LLC at the addr. of its princ. LLC upon whom process against it upon whom process against it may LLC, Auth. filed Sec’y of State (SSNY) office. Purpose: Any lawful activity. may be served. SSNY shall mail Notice of Formation of Limited be served. SSNY shall mail process 4/9/12. Office loc.: NY County. LLC process to Corporation Service Co., Liability Company (LLC). Name: NILI to: c/o BRP Development Corp., 18 org. in DE 4/5/12. SSNY desig. as COLUMBUS SKYLINE LLC Articles 80 State St., NY, NY 12207-2543. As LOTAN HOLDINGS, LLC. Articles of E. 41st St., Ste. 1201, NY, NY 10017. agent of LLC upon whom process of Org. filed NY Sec. of State (SSNY) amended by Cert. of Correction filed Organization filed by the Department Purpose: any lawful activity. against it may be served. SSNY shall 7/16/12. Office in NY Co. SSNY desig. with SSNY on 09/04/12, the process of State of New York on: 07/10/2012. mail copy of proc. to NRAI, 875 Ave of agent of LLC upon whom process may addr. is Corporation Service Co., 80 Office location: County of New York. Name of Foreign LLC: LionTree SL the Americas, NY, NY 10001, the Reg. be served. SSNY shall mail copy of State St., Albany, NY 12207-2543. Purpose: any and all lawful activities. Opportunity LLC. App. for Authority Agt. upon whom proc. may be served. process to 10 E. 39th St., Ste. 1110, Purpose: Any lawful activity. Secretary of State of New York filed with Sec. of State 8/10/2012. LLC DE off. addr.: 160 Greentree Dr., Ste. NY, NY 10016, which is also the (SSNY) designated as agent of LLC formed in DE on 8/9/2012. NY State 101, Dover, DE 19904. Cert. of Form. principal business location. Notice of Qualification of SP FULL upon whom process against it may Office loc.: New York County. Sec. of on file: SSDE, Townsend Bldg., Dover, Purpose: Any lawful purpose. STACK COMMERCIAL CAPITAL LLC. be served. SSNY shall mail a copy of State of NY designated as agent of LLC DE 19901. Purp.: any lawful activities. Authority filed with Secy. of State of process to: 188 Duane Street, New upon whom process may be served. NOTICE OF QUALIFICATION OF NY (SSNY) on 08/01/12. Office York, NY 10013. Sec. of State of NY shall mail copy of NOTICE OF QUALIFICATION of DRYBAR Papanic Niche Spirits LLC. App for location: NY County. LLC formed in process to: LionTree SL Opportunity HOLDINGS LLC. App for Authority Authority filed with the Secy of State of Delaware (DE) on 06/27/12. Princ. Notice of Qual. of SDR Partners, LLC, LLC, c/o Corporation Service filed with Secy of State of NY (SSNY) NY (SSNY) on 5/17/12. Office location: office of LLC: 1330 Ave. of the Auth. filed Sec’y of State (SSNY) Company, 80 State Street, Albany, NY on 5/10/12. Office location: NY NY County. LLC formed in DE on Americas, Ste. 1200, NY, NY 10019. 12/23/11. Office loc.: NY County. LLC 12207-2543. Address of LLC in State County. LLC formed in DE on 6/9/11. SSNY designated agent upon SSNY designated as agent of LLC org. in DE 12/22/11. SSNY desig. as of formation is: c/o The Corporation 1/14/10. SSNY designated as agent whom process may be served and upon whom process against it may be agent of LLC upon whom process Service Company, 2711 Centerville upon whom process may be served. shall mail copy of process against LLC served. SSNY shall mail process to against it may be served. SSNY shall Road, Suite 400, Wilmington, DE 19808. The Post Office address to which the to principal business address: 200 E c/o Corporation Service Co., 80 mail copy of proc. to Att: Jeffrey Name and address of authorized SSNY shall mail copy of process 57th St, Ste 8G, NY, NY 10022. DE State St., Albany, NY 12207-2543. DE Jacobowitz, 6 E. 43rd St., 23rd Fl., official in DE where a copy of LLC’s against LLC to principal business address of LLC: c/o The Corp Trust addr. of LLC: 2711 Centerville Rd., NY, NY 10017. DE off. addr.: CSC, cert. of formation is filed is: Sec. of address: 49 Discovery, Ste 150, Company, Corporation Trust Center, Ste. 400, Wilmington, DE 19808. Arts. 2711 Centerville Rd., Wilmington, DE State of the State of DE, John G. Irvine, CA 92618. Cert of LLC filed 1209 Orange Street, Wilmington, DE of Org. filed with DE Secy. of State, 19808. Cert. of Form. on file: SSDE, Townsend Building, 401 Federal St., with Secy of State of DE located: 19801. Cert of LLC filed with Secy of 401 Federal St., Ste. 4, Dover, DE Townsend Bldg., Dover, DE 19901. Suite 3, Dover, DE 19901. Purpose: 401 Federal St, Ste 4, Dover, DE State of DE located: PO Box 898, Dover, 19901. Purpose: Any lawful activity. Purp.: any lawful activities. to engage in any lawful act. 19901. Purpose: any lawful act. DE 19901. Purpose: any lawful act.

20 | Crain’s New York Business | September 17, 2012 nb38p20-22cl.qxp 9/14/2012 1:16 PM Page 21

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM PUBLIC & LEGAL NOTICES Notice of Qualification of D&T PARTNERS NOTICE OF FORMATION OF Notice of Qualification of GoldenTree Notice of Qualification of GoldenTree Notice of Qualification of 4615 East GP, LLC. Authority filed with Secy. of Freedman Anselmo Lindberg LLC. CLO Debt Investment Partners 2012 CLO Debt Investment GP 2012 LLC. Coast Owner LLC. App. for Auth. State of NY (SSNY) on 08/01/12. Application for Authority filed with the LP. Authority filed with NY Dept. of Authority filed with NY Dept. of State filed with Secy. of State of NY (SSNY) Office location: NY County. LLC formed Secretary of State of New York (SSNY) State on 7/24/12. Office location: NY on 7/24/12. Office location: NY on 7/24/12. Office location: NY in Delaware (DE) on 07/27/12. Princ. on 07/31/2012. Office location: NEW County. LP formed in DE on 6/11/12. County. LLC formed in DE on 6/11/12. County. Principal business location: office of LLC: c/o South Street Capital YORK County. LLC formed in Illinois NY Sec. of State designated agent of NY Sec. of State designated agent of 387 Park Avenue South, 7th Floor, NY, Mgmt., Attn: Chad S. Elson, 369 on 01/26/2005. SSNY has been LP upon whom process against it LLC upon whom process against it NY 10016. LLC formed in Delaware Lexington Ave., 23rd Fl., NY, NY designated as an agent upon whom may be served and shall mail process may be served and shall mail (DE) on 7/20/12. SSNY designated 10017. SSNY designated as agent of process against it may be served. The to the principal business addr.: 300 process to the principal business as agent of LLC upon whom process LLC upon whom process against it Post Office address to which the SSNY Park Ave., 20th Fl., NY, NY 10022. DE addr.: 300 Park Ave., 20th Fl., NY, NY against it may be served. SSNY shall may be served. SSNY shall mail shall mail a copy of any process addr. of LP: c/o National Corporate 10022. DE addr. of LLC: c/o National mail process to: 387 Park Avenue process to the LLC at the addr. of its against the LLC served upon him/her Research, Ltd., 615 S. DuPont Hwy., Corporate Research, Ltd., 615 S. South, 7th Floor, NY, NY 10016, Attn: princ. office. DE addr. of LLC: c/o is: 1807 W. Diehl Rd. Suite 333 Dover, DE 19901. Name/addr. of DuPont Hwy., Dover, DE 19901. Cert. General Counsel. DE address of Corporation Service Co., 2711 Naperville, IL 60563. The principal genl. ptr. available from NY Sec. of of Form. filed with DE Sec. of State, LLC: c/o Corporation Service Centerville Rd., Ste. 400, Wilmington, business address of the LLC is: 1807 State. Cert. of LP filed with DE Sec. Townsend Bldg., Dover, DE 19901. Company, 2711 Centerville Rd., Ste. DE 19808. Cert. of Form. filed with W. Diehl Rd. Suite 333 Naperville, IL of State, Townsend Bldg., Dover, DE Purpose: all lawful purposes. 400, Wilmington, DE 19808. Arts. of Secy. of State of DE, 401 Federal St., 60563. Certificate of LLC filed with 19901. Purpose: all lawful purposes. Org. filed with DE Secy. of State, Ste. 4, Dover, DE 19901. Purpose: Secretary of State of Illinois located at: Notice of Formation of 750 Jalanbo John G. Townsend Bldg., 401 Any lawful activity. 213 State Capitol Springfield, IL 62756. SCREAMING EAGLE OF SOUL, LLC Holdings LLC, Art. of Org. filed Sec’y Federal St., Ste. 4, Dover, DE 19901. Purpose: any lawful act or activity. Art. Of Org. Filed Sec. of State of NY of State (SSNY) 5/16/12. Office Purpose: any lawful activity. SMK ADVISORS LLC, Arts. of Org. filed 07/10/2012. Off. Loc.: New York Co. location: NY County. SSNY designated with the SSNY on 07/06/2012. Office Notice of Formation of 130 Fifth SSNY designated as agent upon whom as agent of LLC upon whom process NOTICE OF FORMATION OF New loc: NY County. SSNY has been Avenue Store Company LLC. Arts. process against it may be served. against it may be served. SSNY shall York School of Finance, LLC. Articles designated as agent upon whom of Org. filed Secy. of State of NY SSNY to mail copy of process to THE mail copy of process to c/o Greenberg of Organization filed with the process against the LLC may be served. (SSNY) on 8/22/12. Off. loc.: NY LLC c/o L & B 325 West 38th St., Traurig, Att: Joshua Hager, Esq., 200 Secretary of State of NY (SSNY) on SSNY shall mail process to: Sandra County. SSNY designated as agent Suite 1101, New York, NY 10018. Park Ave., NY, NY 10166. Purpose: 7/5/2012. Office location: New York Kostel, 15W 20th St., #8A, NY, NY of LLC upon whom process against Purpose: Any lawful act or activity. any lawful activities. County. SSNY has been designated 10011. Purpose: Any Lawful Purpose. it may be served. SSNY shall mail as agent upon whom process process to: c/o The Georgetown Notice of Formation of Lin and Notice of Formation of GP III LLC. against it may be served. The Post SPEAK INTERNATIONAL LLC. Arts Company, 667 Madison Ave., NY, NY Rodriguez LLC. Arts. of Org. filed with Arts. of Org. filed with NY Dept. of Office address to which the SSNY of Org. filed with SSNY on 6/6/12. 10021. Purpose: any lawful activity. NY Dept. of State on 2/7/12. Office State on 11/3/11. Office location: NY shall mail a copy of any process Office loc.: NY County. SSNY desig- location: NY County. Sec. of State County. Princ. bus. addr.: 340 against the LLC served upon him is: Notice is hereby given that an Eating nated as agent upon whom process designated agent of LLC upon whom Pemberwick Rd., Greenwich, CT 14 Wall Street, 20th Floor, New York, Place Beer License has been applied may be served and shall mail process against it may be served and 06831. Sec. of State designated agent NY 10005. The principal business for by the undersigned to permit the process to: 29 W 76th St #3, NY, NY shall mail process to the principal of LLC upon whom process against it address of the LLC is 14 Wall Street, sale of beer at retail rates for on-prem- 10023. Purpose: Any lawful act. business addr.: 270 W. 17th St., Apt. may be served and shall mail process 20th Floor, New York, NY 10005. ises consumption at the Courtyard 3C, NY, NY 10011, Attn: Felicia Lin. to: c/o CT Corporation System, 111 Purpose: any lawful act or activity. Magnetic Collaborative LLC - Arts. of by Marriott located at 410 East 92nd Purpose: any lawful activity. 8th Ave., NY, NY 10011, regd. agent Org. filed with Secy. of State of NY Street, New York, NY 10128 under upon whom process may be served. Notice of Qualification of Street King (SSNY) on 6/1/12. Office location: the Alcoholic Beverage Control Law. CATALYST CONSULTING GROUP Purpose: any lawful activity. LLC. Authority filed with Secy. of NY Co. SSNY designated as agent RLJ C NY Upper Eastside Lessee, LLC, a domestic LLC, Arts. of Org. State of NY (“SSNY”) on 8/2/12. of LLC upon whom process against LLC & Highgate Hotels, L.P. filed with the SSNY on 6/19/12. Notice Of Formation Of QuietContent, Office location: NY County. LLC it may be served. SSNY shall mail Office location: New York County. LLC. Arts of Org filed w/ the Secy formed in DE on 4/11/11. SSNY process to c/o Ganfer & Shore, LLP, SECOND SPRING, LLC, a domestic SSNY is designated as agent upon of State of NY (SSNY) on 2/15/12. designated agent of LLC upon whom 360 Lexington Ave., NY, NY 10017. LLC, Arts. of Org. filed with the SSNY whom process against the LLC may Office location: NY Co. SSNY process against it may be served. Purpose: any lawful activities. on 6/18/12. Office location: New York be served. SSNY shall mail process designated agent upon whom SSNY shall mail process to: 575 County. SSNY is designated as to: The LLC, 1 Bond St., Ste. 6D, NY, process may be served and shall Madison Ave., NY, NY 10022, also Notice of Qual. of MREP9, LLC, agent upon whom process against NY 10012. General Purposes. mail copy of process against LLC to addr. of princ. office. DE addr. of LLC: Auth. filed Sec’y of State (SSNY) the LLC may be served. SSNY shall principal business address: Carey 1/13/12. Office loc.: NY County. LLC mail process to: The LLC, 251 W. 92 Notice of Formation of 157 Niantic Corp. Services, Co., 2711 Centerville Gattyan, 104 W 29th St, 5th Fl, NY, Rd. Ste. 400, Wilmington, DE 19808. org. in DE 1/11/12. SSNY desig. as ST., Apt. 9C, New York, NY 10025. MM LLC. Arts. of Org. filed with NY 10001. Purpose: any lawful act. agent of LLC upon whom process General Purposes. Secy. of State of NY (SSNY) on Cert. of LLC filed with DE Secy. of against it may be served. SSNY shall 8/7/12. Office location: NY County. SELLERS INTERNATIONAL, LLC, a State, 401 Federal St., Dover, DE mail copy of proc. to Att: Felipe ACB PUBLISHING LLC, a domestic SSNY designated as agent of LLC foreign LLC, filed with the SSNY on 19901. Purpose: any lawful activity. Dorregaray, 135 E. 57th St., 16th Fl., LLC, Arts. of Org. filed with the SSNY upon whom process against it may 6/3/10. Office location: New York NY, NY 10022. DE off. addr.: CSC, on 7/23/12. Office location: New York be served. SSNY shall mail process County. SSNY is designated as Notice of Formation of VertIQal Trade 2711 Centerville Rd., Wilmington, DE County. SSNY is designated as agent to: c/o Niantic Partners LLC, 590 agent upon whom process against Systems, LLC. Arts. of Org. filed with 19808. Cert. of Form. on file: SSDE, upon whom process against the LLC Madison Ave., Ste. 1800, NY, NY the LLC may be served. SSNY shall Secy. of State of NY (SSNY) on Townsend Bldg., Dover, DE 19901. may be served. SSNY shall mail 10022. Purpose: any lawful activity. mail process to: United States 08/22/12. Office location: NY County. Purp.: any lawful activities. process to: The LLC, 190 E. 72nd St., Corporation Agents, Inc., 1521 Princ. office of LLC: 261 W. 35th St., VIAPRE LLC, a domestic LLC, Arts. NY, NY 10021. General Purposes. Concord Pike, #301, Wilmington, DE Ste. 1003, NY, NY 10001. SSNY of Org. filed with the SSNY on 7/11/12. HD BLUE PRODUCTIONS LLC 19803. General Purposes. designated as agent of LLC upon Articles of Org. filed NY Sec. of State MFP HOLDING LLC, a domestic LLC, Office location: New York County. whom process against it may be (SSNY) 6/25/2012. Office in NY Co. Arts. of Org. filed with the SSNY on SSNY is designated as agent upon NOTICE OF FORMATION OF served. SSNY shall mail process to SSNY desig. agent of LLC upon 4/30/12. Office location: New York whom process against the LLC may MISTAHLE, LLC. Arts of Org filed the LLC at the addr. of its princ. whom process may be served. SSNY County. SSNY is designated as be served. SSNY shall mail process with Secy of State of NY (SSNY) on office. Purpose: Any lawful activity. shall mail copy of process to c/o agent upon whom process against to: The LLC, Attn: Mr. Federico 6/12/12. Office location: NY County. U.S. Corporation Agents, Inc., 7014 the LLC may be served. SSNY shall Manfredi, 11 Bleeker St., 4th Flr., NY, SSNY designated as agent upon Notice of formation of Empire State 13th Ave., Ste.202, Brooklyn, NY mail process to: The LLC, Edward J. NY 10012. General Purposes. whom process may be served and Spirits Company. Articles of 11228, which is also the registered Minskoff, 730 Park Ave., Apt. 8C, NY, Organization filed with the Secretary Notice of Qualification of VNO 340 shall mail copy of process against agent of the LLC upon whom NY 10021-4945. General Purposes. LLC to principal business address: of State of NY (SSNY) on 6/18/2012. process against the LLC may be West LLC. Authority filed with NY Office location: New York County. Notice of Qualification of SEQUOYAH Dept. of State on 7/11/12. Office 153 ESSEX ST., STE 5D, NY, NY served. Purpose: Any lawful purpose. 10002. Purpose: any lawful act. SSNY has been designated as agent ELECTRIC, LLC. Authority filed with location: NY County. Princ. bus. upon whom process against it may Notice of Qual. of SM SoHo Investor Secy. of State of NY (SSNY) on addr.: 210 Route 4 East, Paramus, NOTICE OF FORMATION OF New York be servced. The Post Office address LLC, Auth. filed Sec’y of State (SSNY) 08/29/12. Office location: NY County. NJ 07652. LLC formed in DE on Gallery LLC. Arts of Org filed with to which the SSNY shall mail a copy 4/9/12. Office loc.: NY County. LLC LLC formed in Washington (WA) on 7/10/12. NY Sec. of State designated Secy of State of NY (SSNY) on 7/18/12. of any process against the LLC org. in DE 4/5/12. SSNY desig. as 12/04/02. Princ. office of LLC: 15135 agent of LLC upon whom process Office location: NY County. SSNY served upon him or her is: 23 East agent of LLC upon whom process NE 92nd St., Redmond, WA 98052. against it may be served and shall designated as agent upon whom 10th Street, Suite 419, New York, NY against it may be served. SSNY shall SSNY designated as agent of LLC mail process to: c/o CT Corporation process may be served and shall 10003. The principal business mail copy of proc. to NRAI, 875 Ave of upon whom process against it may be System, 111 8th Ave., NY, NY 10011, mail copy of process against LLC to address of the LLC is: 23 East 10th the Americas, NY, NY 10001, the Reg. served. SSNY shall mail process to regd. agent upon whom process may principal business address: The Street, Suite 419, New York, NY Agt. upon whom proc. may be served. c/o Corporation Service Co., 80 State be served. DE addr. of LLC: 1209 Dontzin Law Firm LLP, 6 E 81st St, 10003. Dissolution date: None. DE off. addr.: 160 Greentree Dr., Ste. St., Albany, NY 12207-2543. Arts. of Orange St., Wilmington, DE 19801. NY, NY 10028, Attention: Matthew S. Purpose: any lawful act or activity. 101, Dover, DE 19904. Cert. of Form. Org. filed with Sam Reed, Secy. of Cert. of Form. filed with DE Sec. of Dontzin. Purpose: any lawful act. on file: SSDE, Townsend Bldg., Dover, State, PO Box 40220, Olympia, WA State, 401 Federal St., Dover, DE Notice of Qualification of OUR NOISEY DE 19901. Purp.: any lawful activities. 98504. Purpose: Any lawful activity. 19901. Purpose: any lawful activity. Notice of Qualification of RESONANCE BRAINS, LLC. Authority filed with ASSET MANAGEMENT LLC. Secy. of State of NY (SSNY) on Authority filed with Secy. of State of NY 8/22/12. Office location: New York Get connected with Crain’s New York Business. (SSNY) on 08/14/12. Office location: County. LLC formed in DE on NY County. LLC formed in Delaware 8/15/12. SSNY designated as agent (DE) on 08/13/12. Princ. office of of LLC upon whom process against LLC: 155 Wooster St., Ste. 8R, NY, NY it may be served. SSNY shall mail 10012. SSNY designated as agent of process to: Jane S. Englebardt, 295 Promote your product or service to NY’s decision makers with an affordable LLC upon whom process against it Madison Avenue, 12th Floor, New business card size ad in our Business Connections section. may be served. SSNY shall mail York, NY 10017. Address required to process to the LLC at the princ. office be maintained in home jurisdiction: Business Connections Issue Date: Book of Lists (12/24) of the LLC. DE addr. of LLC: c/o c/o National Registered Agents, Inc., Corporation Service Co., 2711 160 Greentree Drive, Ste. 101, Dover, For more information on this powerful opportunity to showcase your business, Centerville Rd., Ste. 400, Wilmington, Delaware 19904. Arts. of Org. filed DE 19808. Arts. of Org. filed with Secy. with Delaware Division of Corporations, contact Joanne Barbieri at 212-210-0189 or [email protected] of State, Div. of Corps., John G. 401 Federal Street, Suite 4, Dover, DE Townsend Bldg., 401 Federal St., Dover, 19901. Purpose: Develop and license Let Crain’s New York Business help you secure new clients in 2012. DE 19901. Purpose: Any lawful activity. software applications.

September 17, 2012 | Crain’s New York Business | 21 20120917-NEWS--0022-NAT-CCI-CN_-- 9/14/2012 7:58 PM Page 1

Investor takes aim at advisers

Continued from Page 1 What’s more, after associates form sufficient due diligence.” mess possible. visited some of the chain’s hotels and The consequence quickly be- Neither Mr. Lichtenstein nor talked to industry contacts, Mr. came apparent. Barely had the ink Willkie Farr would comment for Lichtenstein concluded that Black- on the sale contract dried when the this article. stone’s growth projections were recession hit, business travel slowed It all started back in 1986, when “unrealistic and unachievable in and Extended Stay started gasping Mr.Lichtenstein bought a two-fam- even the best of circumstances,” the for its financial breath. Indeed, the ily house in New Jersey for $89,000, report said. trustee for the hotel’s creditors al- mining his savings and credit card Accordingly, his initial offer was leges the company was insolvent for the down payment. Using the among the lowest of the four that once the new owner moved in. house’s rising value as collateral and Blackstone got, according to the re- the rent that it generated, he bought port. But that’s when Mr. Lichten- ‘Tainted’ advice more housing and later began buy- stein made his big mistake. He suc- Suddenly in a bind,Mr.Lichten- ing commercial space. His strategy cumbed to Wall Street’s hard sell. stein turned to Willkie Farr for ad- was to avoid trophy buildings in ex- His advisers at Citigroup told vice. Putting Extended Stay into pensive neighborhoods like mid- him he had no business questioning bankruptcy would give the compa- town Manhattan in favor of snap- the “collective wisdom” of the nu- ny breathing room to restructure its ping up bargain-priced real estate, merous banks involved in the deal, debts,but not only would he lose the such as outlet malls in distant locales according to the trustee’s suit. In- $200 million in cash he invested, he including Pleasant Prairie,Wis.,and stead, the Citi bankers told Mr. would also have to pay lenders a Lake Jackson,Texas. Lichtenstein that by “monetizing $100 million penalty for commit- “I would rather be the only horse the brand name,” he could raise ting what the LBO terms described in a one-horse town than the third room rates, according to the bank- as a “bad boy” act. Bad-boy penal- newscom horse in a big city,”Mr.Lichtenstein ruptcy examiner.What’s more,Bank ties,common in LBOs,are designed explained in 2005. of America, Bear Stearns and Wa- to discourage heavily indebted com- EXTENDED STAY’S VITAL SIGNS Two years later,Mr.Lichtenstein chovia were offering to lend so much panies from resorting to bankruptcy Before June 2007 leveraged buyout After the LBO set his sights higher and threw him- court and forcing creditors to accept self into the bidding for Extended less than they’re owed. Number of hotels: 664 Number of hotels: 664 Stay, a chain of 664 hotels aimed at ‘It was a brew Nonetheless, Willkie Farr’s ad- midlevel business executives. Un- that was vice was clear. “I have been doing Debt per hotel: $8.6 million Debt per hotel: $11.2 million fortunately, he got into the game at this for 30 years … and you have to Total corporate debt: $5.7 billion Total corporate debt: $7.4 billion precisely the wrong moment: when file,” said Willkie Farr partner Marc the era’s leveraged-buyout frenzy cooked up Abrams, according to Mr. Lichten- 2006 revenue: $1.04 billion 2008 revenue: $1.03 billion was its frothiest. At the time, people stein’s suit against the firm. Extend- with a lot of 2006 earnings before interest 2008 earnings before interest were borrowing vast sums to buy ed Stay filed for Chapter 11 in June payments and other expenses: payments and other expenses: such marquee names as Chrysler people’s help’ 2009. Ironically, just a year later, $554 million $487 million and record label EMI. Although Blackstone, along with Center- Source: Extended Stay bankruptcy examiner’s report Mr. Lichtenstein lacked hotel expe- bridge and hedge fund manager rience, bankers were eager to get John Paulson,bought it back for half him into the game, where he was up what Mr. Lichtenstein had paid. cates how ill prepared Mr. Lichten- Even so, Lightstone is signifi- against a couple of established Wall All that seemed destined to be stein was when he entered the world cantly smaller. Its portfolio of com- Street buyout veterans: Center- forgotten until Mr. Lichtenstein of big-league LBOs. mercial office space is now one- bridge Partners and Fortress Invest- filed suit against his Willkie Farr at- “If you need advice on how to third its former size, according to ment Group. money that it was hard to say no. torneys this past June.He argues the hold a bat, you aren’t ready for the the company website. According to a suit filed last year In the end, Mr. Lichtenstein set firm’s advice was “tainted”because it majors,” Mr. Brandt said. The case against Willkie Farr against Mr.Lichtenstein’s firm by the aside his reservations,upped his bid went on to represent one of the In a court filing, Willkie Farr re- represents the second time Mr. trustee representing Extended Stay and in June 2007 paid $8 billion for lenders seeking payment of the $100 sponded that it gave Mr. Lichten- Lichtenstein has asked a judge to creditors, the hotel novice was “the the company. In all, Mr. Lichten- million bad-boy penalty.The devel- stein the same advice he got from make the firm pay his legal fees.The mark”—the person who could be stein ended up saddling Extended oper is asking for $100 million in another law firm, Weil Gotshal & first request was denied, although counted on to pay up to win the deal. Stay with $7.4 billion in debt—all damages from Willkie Farr, plus $4 Manges, and its advice was consis- the judge did grant his request that of which came easily, he later ad- million for his legal fees. tent with the law.“None of the dam- its lawyers stop representing Bank Raising questions mitted. “The losses suffered by Lichten- ages he seeks to recover can be laid of America in the bad-boy case. But new as he was, documents “At end of the day, nobody put a stein because of the defendants’self- at Willkie Farr’s doorstep,” the firm David Greenberg, a former gen- reveal that Mr.Lichtenstein was still gun to my head and said, ‘Sign the interested conduct and ethical laps- declared. eral counsel at law firm LeClair savvy enough to raise major ques- documents,’ ” he later said in a dep- es are staggering,” his suit contends. Painful as the Extended Stay or- Ryan who’s now a consultant, said tions after examining the hotelier’s osition. “But it was … a brew that Legal experts predict the suit will deal was, it didn’t put Mr. Lichten- Mr. Lichtenstein is unlikely to pre- books. He noted, for example, that was cooked up with a lot of people’s likely fail. stein out of business. His firm, vail and recover anything from the the seller, private-equity power- help. … I’m getting 95%, 99% fi- “The my-lawyer-made-me-do- Lightstone Group, nowadays is de- Extended Stay debacle. house Blackstone Group,overstated nancing. OK? So it was a combina- it defense is rarely bought by judges veloping a 700-unit apartment “He’s blowing smoke,” Mr. the properties’ operating income by tion; there were a lot of people who or juries,especially if you’re a man of complex overlooking Brooklyn’s Greenberg said. “It sounds like he’s inappropriately allocating certain [erred] here.” means,”said Bill Brandt,chief exec- Gowanus Canal, a 220-unit com- cleaned out.” Ⅲ expenses to the corporate level, ac- The bankruptcy examiner was a utive of Development Specialists, a plex on the Long Island City, cording to a report filed by a bank- bit more pointed, later concluding restructuring firm. He added the Queens, waterfront and an outlet LISTEN to a discussion at ruptcy examiner. that Mr. Lichtenstein “failed to per- fact that a suit was filed at all indi- mall in the Bronx. CrainsNewYork.com/podcasts

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM PUBLIC & LEGAL NOTICES Notice of Formation of Limited Notice of Qualification of Hedge Fund Global Lending Services LLC. Arts of Notice of Qual. of International Notice of Qual. of LF Accessories Liability Company (LLC). Name: JA Select: Bocage Global Resources Fund Org filed with Secy of State of NY Sources LLC, Auth. filed Sec’y of Group LLC, Auth. filed Sec’y of State HAN OYSTER BAY HOLDINGS, LLC. LLC. Authority filed with NY Dept. of (SSNY) on 6/8/12. Office location: NY State (SSNY) 2/12/09. Office loc.: NY (SSNY) 7/21/10. Office loc.: NY Articles of Organization filed by the State on 8/28/12. Office location: NY County. LLC formed in DE on County. LLC org. in DE 10/3/08. SSNY County. LLC org. in DE 7/16/10. Department of State of New York on: County. LLC formed in DE on 6/13/12. 10/28/2011. SSNY designated agent desig. as agent of LLC upon whom SSNY desig. as agent of LLC upon 06/25/2012. Office location: County NY Sec. of State designated agent of upon whom process may be served process against it may be served. whom process against it may be of New York. Purpose: any and all LLC upon whom process against it and shall mail copy of process against SSNY shall mail copy of proc. to served. SSNY shall mail copy of lawful activities. Secretary of State may be served and shall mail process LLC: NCR, Melissa Allen, 10 E 40th CTC, 111 Eighth Ave., NY, NY 10011, proc. to CTC, 111 Eighth Ave., NY, of New York (SSNY) designated as to the principal business address: 200 St, 10th Fl, NY, NY 10016. Principal the Reg. Agt. upon whom proc. may NY 10011, the Reg. Agt. upon whom agent of LLC upon whom process West St., NY, NY 10282. DE address business address: Five Concourse be served. DE off. addr.: CSC, 2711 proc. may be served. DE off. addr.: against it may be served. SSNY shall of LLC: 1209 Orange St., Wilmington, Pkwy, Ste 2925, Atlanta, GA 30328. Centerville Rd., Wilmington, DE CTC, 1209 Orange St., Wilmington, mail a copy of process to: c/o Argo DE 19801. Cert. of Form. filed with DE Cert of LLC filed with Secy of State 19808. Cert. of Form. on file: SSDE, DE 19801. Cert. of Form. on file: Real Estate LLC. 50 West 17th Sec. of State, P.O. Box 898, Dover, DE of DE located: 615 S DuPont Townsend Bldg., Dover, DE 19901. SSDE, Townsend Bldg., Dover, DE Street, New York, NY 10011. 19903. Purpose: all lawful purposes. Highway. Purpose: any lawful act. Purp.: any lawful activities. 19901. Purp.: any lawful activities.

22 | Crain’s New York Business | September 17, 2012 20120917-NEWS--0023-NAT-CCI-CN_-- 9/14/2012 7:59 PM Page 1

face stiff competition in his bid for ket and would therefore offer buyers the 16-store portfolio, namely from a favorable rent. Food Emporium draws suitors Mr. Catsimatidis and from another “My prediction,” said Richard private equity investor,Angelo Gor- Hodos, executive vice president of Continued from Page 1 Food Emporium chain will not be and Fairway Market generate more don & Co., which owns upscale CBRE Inc., “is that people will buy A&P is selling 16 Manhattan the last stores it sheds. than $1 million in sales a week in Kings Food Markets and gourmet pieces of the company, mainly for stores,including their leases and the “The company will get much- the city. grocer Balducci’s. the real estate.” Food Emporium brand. A store in needed cash, and hopefully it’ll put Mr. Haub, however, said Food In 2010, while Mr. Haub was ex- New Canaan, Conn., is not part of it into some of their stores that need Emporium achieved “record sales ecutive chairman of A&P, Kings Union jobs on the line the sale, which is being handled by remodeling,” said supermarket con- was interested in acquiring Food That’s bad news for the more investment bank Duff & Phelps, sultant Matthew Casey.“They have Emporium. Since then, the Parsip- than 1,100 employees whose jobs said a spokeswoman. stores that have not been painted or The chain pany, N.J.-based, 24-store Kings are at stake. Union officials say they A&P declined to provide details upgraded in years.” chain has been expanding, having will fight any nonunion employer— about its plans—whether it is selling Food Emporium, though con- is perceived just acquired a store in Old Green- such as Whole Foods or Trader the stores as a group, or why it is un- sidered an upscale brand, is largely wich, Conn. Joe’s—that acquires the stores and loading Food Emporium,common- perceived as pricey and offering lit- as pricey and “While we are continually evalu- does not honor the labor agree- ly referred to as the company’s tle value to shoppers.It began losing ating opportunities to acquire, build ment, which expires in four and a “crown jewel.” A&P owns 320 su- market share over the past decade to offering little or expand our stores,we do not com- half years. permarkets operating as A&P, such competitors as FreshDirect, ment on speculation or rumor,” said “We have an existing relation- Waldbaum’s, Pathmark, Superfresh Fairway, Trader Joe’s and even value Fred Brohm,chief strategy officer of ship with Gristedes and Wald- and Food Basics. Whole Foods, which is considered Kings, in a statement. baum’s,” said John Durso, president expensive but is seen as offering Real estate brokers suggested of Local 338, which represents em- Much-needed cash higher quality. that the stores could be sold to a di- ployees at 14 of the Food Empori- “The sale will enable parent “The stores are not well man- verse group of companies, not just um stores. “It is disappointing that company A&P to support the com- aged,” said supermarket consultant and profitability from 2006 to 2011” food retailers. the company put up one of its best pany’s long-term strategic vision to Burt Flickinger. “Customer counts under the leadership of Hans Heer, “They could also work for the big assets for sale, but we will work with be the No. 1 food and drug store in have dropped dramatically over the former general manager of the fashion discounters,” said Faith the successful bidder as long as it re- every neighborhood it serves,” said past 10 years.” chain. Mr. Haub had recruited his Hope Consolo, chairman of the re- spects our collective bargaining the retailer in a statement. The stores on average generate former colleague,who is now an op- tail group at Prudential Douglas El- agreement.” Ⅲ In March, A&P emerged from between $200,000 and $250,000 in erating partner of Emil Capital liman, adding that many Food Em- bankruptcy with 75 fewer outlets. sales a week, according to Mr. Partners. porium leases were signed before LISTEN to a discussion at Many industry insiders believe the Flickinger. By contrast,Trader Joe’s Mr. Haub acknowledged he will the big spike in the real estate mar- CrainsNewYork.com/podcasts

“We are seeing a lot of people market, all but two of the building’s Mr. Osher would not disclose who were waiting on the sidelines 11 units were sold at prices that prices, but according to Condos come back now jumping in,” said Kelly ranged from $2.65 million for a StreetEasy.com, a two-bedroom, Kennedy Mack,president of Corco- two-bedroom, to nearly $8 million three-bath plus home-office unit Continued from Page 3 hattan slipped to 5,593 last month, ran Sunshine Marketing Group. for a four-bedroom. Mr. Eklund, with 2,400 square feet went into still likely to fall short of demand. the lowest ebb in more than five The bottom line in Manhattan is the broker for that property, said contract late last month at its asking As of last week, plans for just 27 years, according to Mr. Miller. that sales of new apartments are ex- units went at the full asking price price of $7.2 million—which was up new condos, co-ops or conversions “We can use more inventory, pected to outpace additions to sup- without any contingencies or buyer 11% from its previous price. in Manhattan, with a grand total of whether it’s new development or ply through 2015,according to Cor- incentives. “Walker Tower is shattering a mere 875 units, had been submit- sellers listing their homes,” said coran Sunshine. It found that 1,980 record prices for downtown,”he said. ted to the AG’s office in 2012.That Gregory Heym, chief economist for units were absorbed during the 12- Record prices Stephen Kliegerman, president is a fraction of the 52 plans, with a Terra Holdings, parent company to month period ended March 31. In Meanwhile, at 250 Bowery, he of Terra Development Marketing, total of 2,472 units, submitted last residential brokerages Brown Har- contrast,just 1,676 units are expect- noted, 900 people have already said that in the past four months, year—much less the recent peak hit ris Stevens and Halstead Property. ed to be released into the market in signed up to see a new 24-unit de- developers planning new condos in 2006.Back then,there were plans Fanned by strong demand from the next three years. velopment whose condo plan has that will begin marketing next for 211 developments with 15,827 foreign buyers, and average apart- “It’s a perfect storm,” said not yet been approved and therefore spring or fall are contemplating ini- units. ment rents that have set records each Fredrik Eklund, a broker at Pru- cannot be shown. tial asking prices 3% to 10% higher month since March, the outlook for dential Douglas Elliman and a star “There are more buyers than than projected at the beginning of Heightened expectations sales in Manhattan has been im- of the reality-television show Mil- available apartments,” said Shaun this year. Meanwhile, fewer homeowners proving in recent months. Last lion Dollar Listing New York. “The Osher, chief executive of Core, the “Don’t expect developers to be have been putting their co-ops or week’s announcement from the beauty of it is we are at the begin- boutique brokerage marketing negotiable with prices because de- condos on the market, apparently Federal Reserve that it would mas- ning of it.” Walker Tower,a 50-unit condo con- mand is so high,” he said. Ⅲ hoping for better prices down the sively stimulate the housing market Downtown, a condo conversion version in Chelsea that is more than road. As a result, the number of list- as a way to boost employment will at 46 Lispenard St. is a perfect ex- 30% in contract after less than three LISTEN to a discussion at ings for co-ops and condos in Man- only heighten expectations. ample. After just one week on the months on the market. CrainsNewYork.com/podcasts

that are either horizontal and chunky or vertical and thin in a “mat- Fashion Week tress ticking” style. By pairing many T-shirts with relaxed trousers or full Continued from Page 3 Though the audience for such a look skirts, and shying away from one- meted as a result. is limited—younger women might pieces,designers can entice shoppers Even so, there could be a silver love it,but older shoppers might not keen on mixing and matching. lining for New York designers, most be so inclined to bare their abs— “We are moving into a coordi- of which are priced more moderate- fashion buyers have signed on. nates and separates movement,”said ly, at the contemporary rather than “I think it will work for our young Ms. Hartman. “It’s all about outfit- über-luxury level. customer; she is going to embrace ting, which is fantastic for retailers.” “A lot of the New York collections that trend,”said Stephanie Solomon, Retailers were also enthused are not really luxury—they’re more fashion director at Bloomingdale’s. about seeing more stripes. Suzanne accessible and reasonably priced than The 45-unit department store chain Timmins, senior vice president and a Prada or a Marni,” said Sharon owned by Macy’s Inc. is known for fashion director of Hudson’s Bay Graubard, senior vice president and stocking contemporary labels like Co., which owns department store fashion director at trend forecasting Tibi. Such design bets are paying chain Lord & Taylor, said stripes are firm Stylesight. “It could be a good off—same-store sales at Macy’s Inc., always a favorite with her customers. moment for New York designers.” which includes Bloomingdale’s,were Of course,some trends might not Those designers are banking on up 5.1% in August. Year-to-date, even make it onto store shelves come one body part to get the pendulum sales for the company have reached spring. Several designers showed swinging in their favor this spring— $14.1 billion, a 3.9% rise over the Bermuda-style shorts in a departure the midriff. Some buyers pointed to same period last year. from the short-shorts of the past. cropped tops as an exciting fad. Other popular fashions included Experts warned that such looks are Everyone from Jason Wu and Char- T-shirts in woven or mesh fabrics, not terribly flattering and often don’t lotte Ronson,who unveiled truncat- boxy or collared shapes, and stripes work for certain body types.

ed halter-neck shirts, to design “How they translate to the retail newscom house Tibi,which showcased a short LISTEN to a discussion at market will be a challenge,”said Ms. GONE: The ostentatious hats. Designers like PASSÉ: One-pieces are making way for a sweater, were getting in on the act. CrainsNewYork.com/podcasts Hartman. Ⅲ Marc Jacobs featured tamer looks this year. separates craze.

September 17, 2012 | Crain’s New York Business | 23 20120917-NEWS--0024-NAT-CCI-CN_-- 9/14/2012 8:00 PM Page 1

As for BofA, he praised it for and sound the retreat. Indeed, some Analyst cuts banks down to size shedding businesses aggressively investors believe banks shouldn’t be and trying to lower overhead. But if focused on getting smaller, but it acted even faster to wind down rather on getting even bigger still,by Continued from Page 4 the time of Lehman’s collapse. that need to embark on “Plan B “legacy assets servicing costs,” its taking business from ailing Euro- CEO Lloyd Blankfein,who last year Moreover, since that time, most big strategies.” stock price would bump up by 35%, pean institutions. said he believed his industry’s ills are banks have traded for less than their For Citi, he urged the bank to he predicted. “What you don’t want is banks cyclical rather than structural. book values, or net worth.That per- spin off $100 billion worth of For Morgan Stanley, Mr. Rams- constantly in defensive mode,” said Mr. Ramsden joined Goldman sistent discount means investors be- North American real estate assets den suggested cutting the amount of Anton Schutz, manager of the in 1997 after working at accounting lieve that banks’ loans and invest- to shareholders. Doing so, he said, assets dedicated to bond trading by Burnham Financial Services Fund. firm Arthur Andersen,and was pro- ments are worth considerably less would reduce annual losses—to $1 50%, or double the amount planned “And if the economy improves at all, moted to partner in 2008. Institu- than management thinks,that earn- billion from $4 billion—in the di- for by the bank, in the process free- the banks will do very well.” tional Investor named him one of ings growth will be constrained for vision that houses Citi’s vast array ing up $12 billion of cash that could Even if the economy remains Wall Street’s top analysts in 2009, years, and that there’s a general lack of unwanted assets and free up cap- be spent to buy back its depressed sluggish, there’s another reason for but he has maintained a low profile, of confidence in top executives to ital.He also urged the bank to write stock.That and other actions would banks to remain as large as they can: and a spokeswoman said he couldn’t manage sprawling institutions down a $40 billion asset that could increase the stock price by 63%, he It turns out that their size and com- be interviewed. housing trillions in assets. be used to offset future income-tax wrote. plexity help protect them from the Although shares in big banks Mr. Ramsden in his report iden- bills. The combination of steps, he Of course, it would certainly sort of investors Mr. Ramsden’s re- have rallied this year,most still trade tified Citigroup, Bank of America said, could lift Citi’s share price by benefit Goldman if its chief rivals port alludes to—those who want to below the levels they fetched around and Morgan Stanley as among those 68%. were to heed Mr. Ramsden’s advice shake things up. Chris Young, a managing direc- tor and head of contested situations at Credit Suisse,said Carl Icahn told him years ago that he wanted to buy shares in banks and then press man- agement for changes. “But he said he wouldn’t do it be- cause the banks were so big he couldn’t fully understand what ex- actly he was buying.” Ⅲ BANK BREAKUP MATH 1. Decline in stock price since day before Lehman collapsed 2. Latest price-to-book value 3. Potential gain in stock price if the bank heeds Goldman analyst Richard Ramsden’s breakup advice bloomberg newsbloomberg You expect an CITIGROUP -81% expert in capital 0.56 +68% markets and also in your market.

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Sources: Bloomberg, Goldman Sachs

24 | Crain’s New York Business | September 17, 2012 20120917-NEWS--0025-NAT-CCI-CN_-- 9/14/2012 7:21 PM Page 1

INSIDE HELLUVA TOWN Source Lunch Paul Hurley’s Ideeli is no flash Seeing the in the pan PAGE 26 forest for Out and About the trees Social Good Summit at The photographer behind the 92nd Street Y PAGE 27 New York Botanical Garden’s newest book is quite established—in mergers and acquisitions. In October, publisher Monacelli Press will release Magnificent Trees of the New York Botanical Garden, featuring about 200 shots by Larry Lederman,a retired partner of law firm Milbank Tweed Hadley & McCloy.

About 10 years ago, Mr. Lederman, currently a professor at New York Law School, decided to photograph the trees surrounding his Westchester home. After about a year in his own yard, Mr. Lederman decided it was time to, well, branch out. “I had this thought one HIGH TIMES ON THE morning that I ought to do a LOWER EAST SIDE: Chef Simone Apostoli known venue,” Mr. offers an innovative Lederman said. menu of affordable It just so happened that he nouveau Italian cuisine was on the board of directors at the Bowery Kitchen. at the city’s best-known venue for all things arboreal, the New York Botanical Garden. While still working full-time at Milbank, Mr. Lederman spent his Saturdays trekking though the garden’s native forest. “I was hooked,” he said. Season of eateries “You can walk through that forest and have a sense of timelessness.” These fall newcomers are flying under the radar. After retiring in 2004, Mr. Lederman got to devote some Check in before the word gets out more time to trees. He read up on photography and landscape composition and buck ennis taught himself Photoshop. Though he started out using UNIQUE film and making black-and- BY ALIX STRAUSS white slides, Mr. Lederman FEATURES said, he quickly embraced ith summer just about over, local eateries are again in the digital and has never looked spotlight.This season’s crop of newbies include some from back. He considers himself a nature enthusiast first and familiar faces and a few from new contenders. Plenty of foremost. attention is being paid to chef Zak Pelaccio’s Fatty ’Cue in Todd Forrest, the garden’s Williamsburg, which reopens in October after a full face-lift. Italian29 artists whose vice president for horticulture The foodie crowds are also salivating over Top Chef winner tables are showcased at and living collections, wrote the Bowery Kitchen the text.The book’s proceeds Harold Dieterle’s second endeavor, the Marrow, which bows in will benefit the garden. November in the former Paris Commune space in the West “I’m interested in being Village. Places like Andrew Carmellini’s Library at the Public Theater and Marcus Samuelsson’s able to walk in the woods and American Table Cafe and Bar at Lincoln Center are sure to be popular with theatergoers. ¶ The , take pictures of trees,” he 2Weight600 in pounds of the eightW culinary gems listed below, in opening order, are flying under the radar. Check in while seats said. “If it’s art, fine.” barbecue pit at Fletcher’s —ali elkin are still relatively easy to get. See NEW CROP on Page 26 Brooklyn Barbecue

September 17, 2012 | Crain’s New York Business | 25 20120917-NEWS--0026-NAT-CCI-CN_-- 9/14/2012 1:40 PM Page 1

SOURCE LUNCH: New crop of eateries for fall PAUL HURLEY Continued from Page 25 by Adrianne Pasquarelli

THE BOWERY KITCHEN QUEENS OUTPOST: 220 Bowery, Lower East Side MP Taverna offers a Type of cuisine: Northern Italian traditional Greek Why eat there: Dynamic chefs tavern-food mix. Ideeli daily deals are Andrea Mainardi and Simone Apostoli offer an innovative menu of affordable nouveau Italian cui- sine. Custom-fabricated steel- no flash in the pan and-glass tables, the work of 29 of Italy’s finest artists, are not only at- tractive for seating, they are avail- fter six years in busi- carry, like BCBG Max Azria and able for purchase. And because it’s ness, members-only Tahari, are different from brands part of the Bowery House hotel, if flash-sale site Ideeli is Gilt carries. Largely, Gilt is more you enter into a food coma, you’ve ready to reap the shop- high-end. We also have great edito- got a place to sleep for the night. per harvest this fall. rial. We help our members under- Must-order dishes: Egg sandwich ALater this month, the company will stand what’s hot in a concise way. with prosciutto,avocado and fonti- move its headquarters from Little Our consumer is busy and generally na cheese on a whole wheat potato Italy to a 31,500-square-foot office on a budget. roll; homemade lasagna with Ital- krieger daniel in the new New York Times Build- ian meat ragu and Taleggio cheese ing, after relocating its photography Some of your competitors, such as After-work libation: Homemade, Type of cuisine: French bistro and chefs Eduard Frauneder and Wolf- studio to a 23,500-square-foot space HauteLook, were acquired by larger Kölsch-style Bowery Brew patisserie gang Ban,the new 20th-century Vi- nearby in August. corporations. Do you expect Ideeli to Opened: Late August Why eat there: Those strung out enna decor cocktail bar, which was Though critics wonder whether remain independent? after chef François Payard’s three- inspired by the classic 1949 British the deal-of-the-day category will last, Some guys merge and consolidate; PIG & KHAO year hiatus will have their sugar ad- film The Third Man, will serve as a Ideeli founder Paul Hurley said his some guys keep going. We’re a 68 Clinton St., Lower East Side diction filled as he returns with FP pre- and post-dinner option for ad- firm is no flash in the pan. good-size company, Type of cuisine: Southeast Asian Patisserie,which includes a French- mirers of Edi and the Wolf. WHERE growing fast, with an Why eat there: style pastry shop up Must-order dishes: Pumpkin- How has the retail industry THEY enormous amount of run- Brought to you by front, a stylish bustling seed ricotta spread served on toast- changed since you founded ning room. But we’re in a the Fatty Crew bar/coffee bar in the ed walnut bread; house-cured pork Ideeli in 2006? DINED world where deals are Management middle and a sophisti- belly, pickled mustard seeds and The emergence of mobile LOCANDA VERDE happening all the time, so Group, this sister cated bistro in back. cabbage salad commerce, for example, 377 Greenwich you never know. St. restaurant to Fatty Must-order dishes: Pa- After-work libation: Art Nouveau: didn’t exist five years ago, (212) 925-3797 ’Cue offers a yard croque monsieur, nectarines, muddled with vodka, and now well north of 20% www.locanda Your sales were reported near shared-plates menu signature macarons, St. Germain, lime, brown sugar of our revenue comes from verdenyc.com $80 million for 2010. Care to while paying hom- George V cake and tarte Opening: Mid-October it. When people think provide a current figure? AMBIENCE: Old- age to traditional caramel about flash sales, we get school tavern We basically are not giving Southeast Asian After-work libation: HARVIST lumped together with Rue out numbers. We’ve CHEF LEAH COHEN charm fare infused with PIG & KHAO Champagne 40 W. 116th St., at Fifth Avenue, and Gilt and HauteLook, grown dramatically since Thai and Filipino Opening: Mid-Octo- Harlem but we started out in a lit- WHAT THEY ATE: then. Type of cuisine: Ⅲ Arugula flavors. Its slightly ber Rustic,American tle corner doing this, and insalata with less expensive offerings are a bonus, South and Latin American now it’s much broader. black mission Is the company profitable? as is the outdoor seating and a din- MP TAVERNA Why eat there: Giving Red Roost- Social commerce has figs, asiago and Growing vertically doesn’t ing bar where you can see chef Leah 31-29 Ditmars Blvd., Astoria, er a run for its money, Harvist, tak- emerged as a driving force, American speck; matter as much as build- Cohen in action. Queens ing inspiration from the popular so- and how people want to pappardelle with ing a lasting company,and lamb Bolognese, Must-order dishes: Crispy pata Type of cuisine: Greek-American cial halls of the past, is destined to shop is changing almost mint and ricotta; those are measured in and pickled mango salad served Why eat there: Followers of chef become Harlem’s new living every day. mint lemonade profits. It’s not 1999, with pork shank; grilled pork neck Michael Psilakis, who also co-stars room—easy because the restaurant Ⅲ Local tomatoes where the value of a com- and watermelon salad with chili on BBC America’s shares both a wall and the With so many companies with watermelon pany is tied to how many entering the discount category, and smoked lime fish sauce No Kitchen Required, owners of MIST, a new ricotta from people click on some- After-work libation: Soju and no longer need to cultural center. have you had any trouble Abruzzi; duck thing. You have to sell slushy beer travel to Long Is- Must-order dishes: getting merchandise from meatballs with products and do it in a Opening: This week land or Westchester, Shrimp and grits; rum- designers? dried cherry profitable way. We have a mostarda; lamb where his other MP marinated skirt steak We’re on the right side of sausage grinder culture and an approach to FLETCHER’S BROOKLYN BARBECUE Taverna restaurants with salsa verde history when it comes to with spicy metrics and data that 433 Third Ave., Gowanus are located, to get After-work libation: this share shift. The basic peperonata, make me confident that Type of cuisine: American pit their traditional Moscato sangria with line in this category has broccoli rabe and we’re going to be super- barbecue Greek tavern-food seasonal fruit been drawn in terms of ricotta; iced tea profitable at scale. Why eat there: Champion barbe- fix. (He also owns Opening: Mid-Octo- new guys popping up. TAB: cue competitor and Brooklyn resi- Kefi and Fish Tag, CHEF LAURENT TOURONDEL ber With the existing guys, Consumers are paying full ARLINGTON CLUB $115.81, dent Bill Fletcher, along with for- both on the Upper the competition is there, including tip price again and are less mer RUB pit master Matt Fisher, West Side.) ARLINGTON CLUB but the requirements on- focused on sales. Is there will introduce city folk to tradition- Must-order dishes: Octopus with 1032 Lexington Ave., Upper East line are very different than tradi- still long-term growth potential for flash- al American pit a Mediterranean chick- Side tional retail. You have to have the sale sites? barbecue meats. pea salad; grilled branzi- Type of cuisine: Prime steak- right product for consumers and the There’s no doubt having a big re- The restaurant no with fingerling pota- house and sushi bar skills associated with finding mil- cession at the beginning of this comes complete toes, cherry tomatoes Why eat there: Foodies will re- lions of customers online and get- helped to jump-start it. Now, with a 2,600-pound and olives joice in the much-awaited partner- ting them to come back. Overall, though, the economy is bouncing bright-red barbe- After-work libation: ship between acclaimed chef Lau- the thing that helps us is every night along; there’s still a fundamental cue pit and open Fiery Pink Lady: tsilili rent Tourondel, former partner in before we go to bed, more and more shift of how consumers buy—they kitchen. ouzo, samos, ruby grape- the BLT restaurants and owner of consumers want to shop online for want good value. It doesn’t have to Must-order dish- fruit juice, pepper acclaimed LT Burgers, and the products. be discount; we sell at full price es: Sliced dry- Opening: Mid-Octo- TAO Group. The new team has sometimes, but we package it in a rubbed brisket; St. ber created an upscale, bilevel dining Why would a shopper choose Ideeli way that makes it unique. Do I Louis-cut ribs with CHEF EDUARD FRAUNEDER room and bar that seat 200. over a competitor like Gilt? think the long-term prospects of dry rub and finish- THE THIRD MAN THE THIRD MAN Must-order dishes: Chef Touron- We’re the leader in mainstream our general space are in danger? ing glaze 116 Ave. C at East del’s famous 28-day dry-aged women’s fashion, so brands that we That one I sleep soundly on. Ⅲ After-work libation: Eighth Street, Alphabet porterhouse for two; sautéed A top-shelf bourbon on the rocks City Dover sole Opening: Late September Type of cuisine: Chef-driven After-work libation: Meyer INSIDE TIP: Go during the week for lunch. cocktails and Austrian-inspired Lemon 74, the restaurant’s signa- FP PATISSERIE small plates ture champagne cocktail This hot spot draws dinner crowds. 1293 Third Ave., Upper East Side Why eat there: Brought to you by Opening: Late October Ⅲ

26 | Crain’s New York Business | September 17, 2012 20120917-NEWS--0027-NAT-CCI-CN_-- 9/14/2012 8:01 PM Page 1

OUT AND SNAPS New York Fashion Week: DKNY meets FDNY ABOUT by Emily Laermer and Miriam Kreinin Souccar

CULTURE FIX CAREER BUILDERS STARTING TUESDAY, SEPTEMBER 18 WEDNESDAY, SEPTEMBER 19, The New York City Ballet will open its 2012- TO FRIDAY, SEPTEMBER 21 13 season with its first ALL STRAVINSKY/ALL The Business Council of New BALANCHINE FESTIVAL,a York State Inc. will host its 2012 two-week celebration of ANNUAL MEETING. The event will the partnership between include a health care panel, an mcmullan patrick Igor Stravinsky and the awards ceremony and a New York designer MARC JACOBS (left) and pop star RICKY MARTIN at ballet’s founder, George presentation on economic Mr. Jacobs’ fashion show on Sept. 10 at the Lexington Armory. Mr. Martin Balanchine. It will development opportunities in is currently starring in Evita on Broadway. include performances of New York. It will be held at the 12 ballets created by Mr. Sagamore Hotel, 110 Sagamore Balanchine to Mr. Stravinsky’s music.The fall Road, in Bolton Landing, N.Y. season will continue through Oct. 14, with Registration is $495 for members, performances of nine additional ballets. Shows $675 for future members, $325 for are at the David H. Koch Theater, Columbus spouses and $325 for chamber Avenue and West 63rd Street.Tickets can be executives. For more information, purchased online at www.nycballet .com or by visit www.bcnys.org. calling (212) 496-0600. FRIDAY, SEPTEMBER 21 WEDNESDAY, SEPTEMBER 19, Come pay your respects to TO SATURDAY, SEPTEMBER 22 companies that have gone under HOLDING IT DOWN: THE VETERANS’ DREAM at STARTUP FUNERAL. Founders PROJECT representing these startups will

will make its world premiere at the chaz niell have the chance to speak about Harlem Stage Gatehouse.The show is a SAMUEL L. JACKSON, NANCY ALTOBELLO, ANNIE GRIFFITH, NICOLE the lessons they’ve learned and combination of music and poetry about the GRIFFITH, KAREN RUSSELL and Golf Channel’s DAVID FEHERTY at mcmullan patrick actual dreams of veterans of color of the Iraq and their new ventures. The free the annual Mentor’s Champions Golf Challenge on Long Island. Nicole MISS PIGGY and designer DONNA KARAN at DKNY’s Fashion Night Afghanistan wars. Shows are at 7:30 p.m. at 150 event is at 8 p.m. at the New Griffith, an Ernst & Young executive, received the Mentor of the Out on Sept. 6. The event, honoring the release of the FDNY 2013 Convent Ave., between West 133rd and West Work City Funeral Home, on the Year award. The event raised nearly $700,000 for Mentor: The National Calendar of Heroes, raised more than $25,000 for the FDNY 135th streets.Tickets are $30, but opening- second floor of 412 Broadway, at Mentoring Partnership. Foundation, which offers fire-prevention programs throughout the city. night tickets are $60, $30 of which underwrites Canal Street. For more a ticket for a veteran. For more information, visit information, visit www.startup www.harlemstage.org. funeral.com. DON’T MISS SOCIAL GOOD SUMMIT SATURDAY, SEPTEMBER 22, TO MONDAY, SEPTEMBER 24 Find out how social media and technology can help make the world a better place at the third annual SOCIAL GOOD SUMMIT. The event is sponsored by Mashable, the 92nd Street Y, the United Nations Foundation, Ericsson, the Bill We congratulate our client and Melinda Gates Foundation and the United Nations Development Program. It is at the 92nd Street Y, 1395 Lexington Ave., between East 91st and East 92nd streets.Tickets are $50 for one day or $130 for three days. For more information, visit www.socialgoodsummit.com.

OPENING FUNDRAISERS FRIDAY, SEPTEMBER 21 SATURDAY, SEPTEMBER 22 NATURE AND THE AMERICAN VISION: THE The Staten Island Museum will host a HUDSON RIVER SCHOOL will open at the benefit concert by INGRID MICHAELSON, New-York a singer-songwriter from the borough. Historical The event takes place at 8 p.m. at St. Society.The George’s Theatre, 35 Hyatt St., at on the $1.71 billion transaction relating exhibit will Central Avenue.Tickets cost $30, $40 display 45 iconic and $150.The $150 ticket includes a 19th-century champagne cocktail reception.Tickets to the acquisition of the US assets of landscape to an after-party, where fans can meet paintings by Ms. Michaelson, are an additional artists including $100.To purchase tickets, call the St. Thomas Cole, George’s box office at (718) 442-2900. John F. Kensett and Albert Bierstadt. It will run through Feb. 21, 2013. The SUNDAY, SEPTEMBER 23 museum is located at 170 Central Park Chef Charlie Palmer will host West, at West 77th Street, and is open AUREOLE’S FIRST OYSTER SOCIAL. Half Tuesdays through Thursdays and the proceeds from each ticket will go Saturdays from 10 a.m. to 6 p.m., to Citymeals-on-Wheels. The event Fridays from 10 a.m. to 8 p.m. and will include oysters, seasonal fare, Sundays from 11 a.m. to 5 p.m. Bloody Marys, beer, wine and live Admission is $15 for adults, $12 for music. It takes place at noon at seniors and educators, $10 for students, Aureole, 135 W. 42nd St., at $5 for children 5 to 13 years old and free Broadway.Tickets are $75 in advance for children under 5. For more or $85 at the door. For reservations, information, visit www.nyhistory.org or call (212) 319-1660 or email call (212) 873-3400. [email protected]. MARK YOUR CALENDAR… STARTING WEDNESDAY, NOVEMBER 28 ALVIN AILEY AMERICAN DANCE THEATER will open its 2012-2013 season. This is the company’s second season led by artistic director Robert Battle. New York performances run through Dec. 30 and will include the world premiere of Another Night, choreographed by Kyle Abraham. The theater is located at 405 W. 55th St., at Ninth Avenue. Tickets start at $25, and can be purchased by calling (212) 581- Want more info on our donedeals? Scan the QR Code with your smart phone. 1212 or visiting www.alvinailey.org or www.nycitycenter.org.

September 17, 2012 | Crain’s New York Business | 27 CN015363.qxp 8/29/2012 12:39 PM Page 1

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