CNYB 03-16-09 A 1 3/13/2009 9:20 PM Page 1

INSIDE Politicians TOP STORIES impede recovery West Side Story —Alair Townsend gives early lift on the to Broadway ® economic crisis PAGE 2 Page 11 Minor party plays major role pushing VOL. XXV, NO. 11 WWW.CRAINSNEWYORK.COM MARCH 16-22, 2009 PRICE: $3.00 millionaire’s tax PAGE 3 BAILOUT: NY Waterway owner Ruling Arthur Imperatore Sr. Magazine defies is looking for a public ad slump, makes transit agency to buy on rents real money on Web his ferry company. PAGE 3 squeezes SPECIAL REPORT landlords May owe back rent; units could return to regulation

BY THERESA AGOVINO

after 23 years in Stuyvesant Town, Ken Chanko and his family REAL ESTATE dreaded the idea of leaving. But FORECLOSURES HIT with the end of rent regulation for HOME IN NEW YORK their three-bedroom apartment Subprime loans prove looming, Mr. Chanko knew there undoing of thousands was no way they could afford to stay. of householders PAGE 19 buck ennis That could change. Two weeks G ago, a state court effectively barred Auctioneers provide keys landlords from deregulating apart- to unlock frozen real estate ments in buildings that receive cer- sales markets PAGE 19 tain tax breaks. Less than a week G With large leases scarce, later, Mr. Chanko filed a lawsuit landlords subdivide space against his landlord, Tishman and conquer PAGE 22 FERRY SENDS S.O.S. Speyer, demanding a renewal lease at a rent-stabilized rate. NY Waterway’s owner says next berth is Ch. 11 “We were trying to find ways to BUSINESS LIVES stop the decontrol,” says Mr. DADDY & ME Chanko, a public school teacher, need of a rescue. The firm, which transports riders to who says the rent on his apartment Newly jobless fathers BY LISA FICKENSCHER Manhattan from Weehawken and other New Jersey is “much, much less” than the mar- discover the ups and ports, could go bankrupt this year. Its situation is so ket rate of roughly $5,300 a month. downs of stay-at-home when captain chesley sullenberger landed US precarious that the company is preparing a lawsuit PAGE 29 “The court ruling was a relief.” life Airways flight 1549 in the Hudson River in January, against US Airways to recoup the expenses it incurred For landlords, it could well be- NY Waterway ferries arrived at the scene within min- during the rescue effort. come an albatross if, as expected, utes,fishing 142 of the 155 airline passengers from the “We are embattled,”says Chief Executive Arthur Im- thousands of tenants follow Mr. icy water.Then the company transformed its ferry ter- peratore Sr. “The question is whether we can survive.” Chanko’s lead. Meanwhile, land- minals at West 39th Street and in Weehawken, N.J., His list of woes is long. Ridership in February lords are terrified that the ruling into triage centers. dropped 12% from year-earlier levels, to 26,400 daily will not only stop deregulation,but Two months later, NY Waterway is the one in dire See FERRY SENDS S.O.S. on Page 9 See LANDLORDS on Page 8 GE’s stock slam brings breakup to light INDEX

NEIGHBORHOOD JOURNAL ______12 Finance unit sinks shares; NBC sale DO THE MATH

THE INSIDER ______16 could bolster battered balance sheet GE’s market cap $100 billion SMALL BUSINESS ______17 Estimated value of GE’s non-finance THE WEEKS AHEAD ______18 many are popping simultaneously operations $108 billion CLASSIFIEDS ______26 BY AARON ELSTEIN that GE’s future is in jeopardy.
$52 billion EXECUTIVE MOVES ______28 Last week the once bluest of blue Technology businesses
CORPORATE LADDER ______30 inside general electric co., the chips lost the AAA credit rating it Energy businesses $37 billion See AT DEADLINE on Page 2 conglomerate’s various business held since 1956. Over the past year, TABLE TALK ______31
NBC Universal $19 billion lines are known as “bubbles.” So its share price has sunk 75%, wiping out more than $300 billion in mar- Market’s “value” for GE Capital -$8 billion ket value, an even bigger oblitera- As of March 13. Source: CreditSights 11 istockphoto

5 tion of wealth than Citigroup’s.This week GE is summoning investors to its Fairfield, Conn., headquarters Although best known for manufac- Now that the good times have em- for the second time since December turing everything from light bulbs phatically ended,it appears the unit ELECTRONIC EDITION so it can again try to assure them to jet engines,its finance arm was its has set aside nowhere near enough that all is not as dire as it appears. biggest source of profit during the reserves to cover the billions in loan NEWSPAPER GE’s problem is fairly simple. boom years that ended in 2007. See GE STOCK on Page 8 71486 01068 0 CNYB 03-16-09 A 2 3/13/2009 8:50 PM Page 1

IN BRIEF THE UJA-FEDERATION OF NEW YORK IS THE LATEST MAJOR NONPROFIT TO BE HIT BY THE deepening recession. The local agency, the largest in the national network, is laying off 52 employees, about 11% of its staff. Fundraising pledges have dropped 10% so far this year, and the group’s $675 million endowment has shrunk by 25%. Last year, the nonprofit raised $153 million in its annual campaign. The UJA, which funds hundreds of nonprofits in New York and abroad, will maintain unrestricted support for most of its member agencies but will reduce other grants modestly. THE 2009 ZAGAT SURVEY TOUTS 35 EATERIES THAT ALLOW DINERS TO BRING THEIR OWN booze.The problem is that most New York restaurants with a BYO policy are flouting the law, risking hefty fines or even forced closure. The New York State Liquor Authority is addressing such common violations with a new series of seminars in the city, starting next week in Brooklyn, that are meant to educate restaurant and bar owners about liquor laws. TIFFANY & CO. IS CLOSING A DOOR BUT OPENING A WINDOW. ON FRIDAY, THE JEWELER announced plans to open a 2,100-square-foot shop in Amsterdam—its first store in the Netherlands. Earlier last week,Tiffany said it will close its underperforming 16-unit Iridesse Broadway bet paying off division, which was launched in 2004 to sell

pearl jewelry.The new store, carrying many of photos: marcus joan the same signature designs as the Fifth Avenue location, will help the jeweler gain a stronger at all raising money to mount the show, foothold in Europe. In previews, West Side Story packing which cost $14 million. Surprisingly, the recession so far has done little to dampen PFIZER INC. AWARDED CHIEF EXECUTIVE them in; no shortage of investors investor enthusiasm for Broadway. With JEFFREY KINDLER $13.8 MILLION IN TOTAL a total of 43 shows set to open this sea- compensation last year, a 45% increase from son, Broadway will have more new pro- 2007, even as net income slipped by 2% at the BY MIRIAM KREININ SOUCCAR ductions than in any season in the past pharmaceutical giant, according to a regulatory two decades. The number is equal to filing. Mr. Kindler’s pay includes $175,000 for when kevin mccollum decided to stage a revival of West Side Story, 1986-87, when 43 shows opened as well. personal use of the corporate jet.The company he was embarking on new territory. Some of the productions this year says it has frozen salaries for top executives this The Broadway producer—who has had a string of original hits such were simple one-man shows with limit- year in light of tough economic conditions. ed runs. But those can bring in big prof- However, the majority of senior executive pay as In the Heights, Avenue Q and Rent—had always steered clear of its. You’re Welcome America. A Final Night comes from stock and option grants, not salary. revivals. “You’re lucky if a revival lasts more than one season,” Mr. With George W Bush, starring comedian McCollum says. Will Ferrell, broke house records at the Cort Theater during its run from Feb. 5 vol. xxv, no. 11, march 16, 2009—Crain’s New York Business (issn 8756-789x) is published weekly, except for a combined issue 4th But he took on the project because he were the only ones to break the million- and its closing yesterday. The show re- week of December by Crain Communications Inc., 711 Third grew up loving the musical and saw a way dollar mark during the past two weeks. couped its original investment of $2.09 Ave., New York, NY 10017. Periodicals postage paid at New York, to make the story relevant again. The new West Side Story is causing a million after an astonishing two weeks. N.Y. and additional mailing offices. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, 1155 It looks like his bet is paying off. stir because it has been reworked and is Still, producers are nervous about fu- Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: There are 17 more productions still to being directed Arthur Laurents, the au- ture ticket sales, especially with so much Call (888) 909-9111. Fax (313) 446-6777.$3.00 a copy, $59.79 one year, $109.79 two years. (GST No. 13676-0444-RT) open on the Great White Way before thor of the original Tony Award-winning new product coming in. In addition to a ©Entire contents copyright 2009 by Crain Communications Inc. Tony time,but at this point,West Side Sto- book. The remake of the 1957 sensation number of big musicals, like 9 to 5 and All rights reserved. ry is set to be the biggest hit of Broad- has updated choreography and new West Side Story, at least 14 new plays— way’s spring season. Spanish-language lyrics,reflecting an ef- many with celebrities—will compete for Advance ticket sales for the musical, fort to create a more realistic show for cash-strapped audiences and a declining which opens Wednesday,March 19,have these times. tourist base. ECONOMETER already surpassed $14 million. Industry “You can’t just put up the marquee and experts believe that is the highest advance Plethora of new shows think people are going to come,” says Weekly directional of the city’s economy. ever for a revival. “to have an author who, 52 years lat- Daryl Roth, producer of the new Tovah SHOCK! HORROR! For a change, most of the In its first two weeks of previews, the er, is willing to make changes to his work Feldshuh play, Irena’s Vow, which opens week’s surprises came on the upside—from retail production has grossed more than $1 to reflect our time, and then to direct it March 29.“We have to be very tenacious
sales that weren’t as lousy as feared, to bank profits that proved not to be an anachronism after all. million a week, making it the highest- himself is unprecedented,” says Mr. Mc- about reaching out to people, and at the grossing show after the longtime block- Collum. same time be frugal about how we’re buster Wicked. Those two productions The producer says he had no trouble spending.” 

POSITIVE NEGATIVE

LOUD

C Y SHALL WE DANCE? The new production S of West Side Story Y T O N R is grossing more N M than $1 million a U Y S week in previews.

+72.8% -0.1% +13.0% Gain in Citigroup’s Decline in retail Bloomberg/ share price last sales in Feb.—vs. a Crain’s NY Stock week—to a still feared drop of Index weekly lowly $1.78 0.5% change (Commerce Dept.)

2 | Crain’s New York Business | March 16, 2009 CNYB 03-16-09 A 3 3/13/2009 8:51 PM Page 1 Suddenly sexy: Consumer Reports THOUSANDS came out to back an upper-income tax increase.

revenue by charging readers for Subscription model holds online content. up in recessionary times; In addition, neither the magazine nor the Web site has Tax hike is Web users pay for access had to deal with the ad collapse now punishing the industry. And with both magazine BY MATTHEW FLAMM and Web subscriptions up for textbook the fiscal year, Consumer Re- since it doesn’t accept advertising, ports is one of the few major ti- Consumer Reports will never seduce readers tles eking out revenue growth with scented inserts or stylish photos of in an economy that has devas- politics half-naked models. And forget about a tated print media. bare-armed Michelle Obama ever gracing It’s even expanding its foot- its cover. New cars or TV sets and their rat- print. Consumers Union, the Working Families Party ings and reviews are the magazine’s ver- nonprofit publisher of the magazine,recent- sion of a hot story. ly bought edgy blog The Consumerist from rallies popular support, But more than any maga- Gawker Media. zines at giants Condé Nast legislative action in Albany or Time Inc., the 73- Has some tricks to share year-old Consumer Re- located in yonkers,Consumer Reports BY ERIK ENGQUIST ports—which, figura- has long been viewed as a specialty pub- tively speaking,wears lication with nothing to teach the in- new york’s chattering classes are no longer its sensible shoes with dustry.Those days may be ending. debating whether state income taxes will be pride—can boast of be- “The model that’s working here is jacked up on high earners. Now the only ques- ing a cutting-edge title with a creating useful information and getting tion is by how much.And the credit—or blame— business model fit for the 21st people to pay for it,” says Editorial Di- for successfully framing the debate goes largely century. rector Kevin McKean. “Not a lot of to a minor political party that’s starting to have other publications have been able to do a major impact on state government. Successful Web strategy that, but they need to figure out how.” The left-leaning Working Families Party has it has the most success- Consumer Reports is coming off of orchestrated a tax-reform campaign straight ful Web strategy of any several years of rapid growth, with the from the textbook of retail politics. Last week, it major consumer publica- number of Web subscribers having staged eight simultaneous rallies that drew near- ONLINE EDGE: tion, with paid subscrip- Consumers Union more than doubled, to 3.3 million, ly 100,000 people statewide,including 50,000 at tions generating nearly execs Jerry since 2004. The pace has flattened in City Hall. It has knocked on 42,000 doors, gen- half its overall revenue. Steinbrink (left) recent months, but subscriptions to erating 7,000 handwritten letters to lawmakers. Only The Wall Street and John Sateja. ConsumerReports.org are still up 6.4% Radio advertisements saturate the airwaves in Journal, among main- through January of fiscal year 2009, which Albany. Its YouTube video “highlighting how stream publications, began June 1, says Consumers Union Ex- easy the state’s tax system is on millionaires,” as

generates meaningful arnold adler See SUDDENLY, IT’S SEXY on Page 9 See RALLYING on Page 8

Stearns Merchant Banking in 1998, then taking it public six years ago. Sewing up the teen retail market “His leadership has been stellar over a very long period of time,”says Mr. Palmer. declined 10%.True, over the past 12 Under her direction, Aéropostale’s well in terms of style and price. Staying popular with kids ages Aéropostale gains months Aéropostale’s shares have assortment has become more hip A dollop of patience helps the 14 to 17 is notoriously difficult, share with low shed 4% of their value, but that still and appealing to shoppers. chain nail fashion trends. however. On top of that, Mr. contrasts sharply with the 71% drop In addition,the low price tags al- “They’re a little behind in real Geiger’s stores are under pressure as prices, stylish duds; in the price of the shares of archrival low the retailer to consistent- forward-cutting fashion,” never before as anchor tenants at Abercrombie & Fitch. In this mar- ly beat out the competition. says Kirk Palmer, who many malls close up shop, reducing bit of patience helps ket even J. Crew, a brand hailed for At Aéropostale, frugal teens runs an eponymous ex- foot traffic for the specialty stores stylish looks and long- ecutive search firm spe- clustered around them. BY ADRIANNE PASQUARELLI lasting products, has seen cializing in retail.“Their its stock shrivel by 75%. philosophy is, we don’t Silence of the malls in an increasingly dismal retail have to be first,we just “aéropostale is in a lot of shopping environment, teen chain Aéro- Right combination want to be right.” centers, [which have] a lot of empty postale stands out as a statistical at a time when shoppers The strategy lies stores,”says Bob Grayson,founder of freak.As many of its rivals crash and have less to spend, Aéro- in waiting to find retail consultancy The Grayson Co. burn, Aéropostale’s earnings for the postale is racking up gains out what trends will To maintain momentum, Mr. fiscal year ended Jan. 31 actually as a low-priced retailer stick before plan- Geiger is trimming the dead wood jumped 16%, hitting a record that still offers trendy ning for a season. and at the same time adding some $149.4 million. Same-store sales— clothes and inexpensive Much of the new branches. This year he’ll close a key measure of a retailer’s health— accessories. credit goes to Mr. Geiger. the company’s underperforming rose 11% in February. “Aéropostale screams Since its founding as a stand- Jimmy’Z division, an 11-store surf- “We are very proud to have value to customers with alone operation by R.H. apparel chain, and launch P.S. from achieved our 11th consecutive year ‘wow’ pricing and fash- Macy & Co. in 1987, Aéro- Aéropostale, which is aimed at ele- of positive same-store sales,” Chief ion-right product,” noted Roxanne can purchase two graphic postale has grown into a 903- mentary-school children. The first Executive Julian Geiger said in a Meyer,a UBS Securities analyst in a T-shirts for $20, compared with the store chain, with locations as far- of 10 stores planned for the metro conference call. “Our merchandise recent report. $19.50 price tag on similar shirts at flung as Puerto Rico and Canada area will open in June. has never looked better.” Analysts give much of the credit American Eagle Outfitters. The and net sales of $1.9 billion last year. “We will create a destination America’s teens agree with him, to Mindy Meads,former chief exec- colorful assortment of camisoles Mr.Geiger has been there almost promotional kids’ business that will and so do investors, who have utive of Victoria’s Secret Direct, starting at as little as $9.99 and every step of the way,initially work- leverage on Aéropostale’s strength,” pushed the shares up 39% so far this whom Mr. Geiger brought in as dresses at $24.99, along with men’s ing for the company under Macy’s said Ms. Meads in last week’s con- year even as the S&P Retail Index head merchandiser two years ago. plaid shorts at $24.99, also stack up before buying the brand with Bear ference call.

March 16, 2009 | Crain’s New York Business | 3 CNYB 03-16-09 A 4 3/13/2009 9:05 PM Page 1

Brokerages must pay Preserving options IN THE MARKETS at Liz Claiborne to help cover Madoff shares of Liz Claiborne Inc. have lost nearly 90% of their value over the by Amanda Fung and Adrianne Pasquarelli past 12 months. But at least the top ‘Bernie’s tax’ forces executives have a chance to reap some benefits after the plunge if brokers to better things ever turn around. fund anti-fraud kitty Bristol-Myers out in the cold? The apparel company reported in a filing last week Big mergers surround drug giant it had “accelerat- BY HILARY POTKEWITZ ed” the award- ig pharmaceutical mega- year it is scheduled to lose marketing ing of long-term in the wake of Bernard Madoff ’s mergers are bubbling every- rights for the antidepressant Abilify. stock options for $65 billion Ponzi scheme, the bro- where—except, it seems, at The three drugs represented 45% of Chief Executive BBristol-Myers Squibb kerage community is about to pay for . Management net sales of $20 billion last year. Bill McComb the bad behavior of one of its own. may have to hustle. The maker of Fully aware of the challenges, and other senior To raise enough money to cut the blockbuster drug Bristol-Myers has officials to De-

restitution checks to Mr. Madoff ’s bloomberg news Plavix is one of the few STEADY DOSE been making smaller cember 2008, thousands of scorched investors, the major drug companies acquisitions and li- instead of Securities Investor Protection Corp. ly 40 years ago to provide investors running solo. And, Bristol-Myers Squibb shares, censing deals to fill its the originally weekly closing prices. this month forced a major fee hike on with at least some protection—up to like the rest of Big medicine cabinet. bloomberg news planned late the 5,400 member firms that fund $500,000—against securities fraud Pharma, it has a high- Earlier this month, it February or early March 2009. the insurance program. or the collapse of a firm. ly profitable roster of paid two Japanese Liz Claiborne did not disclose Starting April 1,yearly dues jump The trustee in charge of liquidat- trademarked drugs companies a total of the number of employees who re- to 0.25% of a firm’s annual net oper- ing Mr. Madoff ’s firm, Irving Picard that’s slowing to a $40 million for the ceived the earlier-than-scheduled ating revenue, up from a flat yearly of Baker Hostetler, says he’s gotten trickle while pressure rights to an experi- stock options, awarded “so that fee of $150—a rate that had not back about 5,000 of the 8,000 claim from cheaper generic mental drug for irreg- these executives could focus all of changed in more than a decade.If the forms sent to Madoff victims. In- drugs rises. “Bristol ular heartbeat. their energy on the work that new fee system had been in force last vestors have until July to file. needs to do some- Yet such steps needs to be done and worry less year, Goldman Sachs’ annual dues If all the claims received so far are thing; it is exposed may not be enough about their personal futures,” the could have been as high as $55 mil- approved for the maximum compen- to multiple patent to quiet takeover company said. lion, based on its reported $22.2 bil- sation amount, SIPC would be on and exclusivity talk among an- Exec-comp consultants call the lion in net operating revenue, and the hook for $2.5 billion. The fund losses in the next alysts. Poten- switch uncommon—and probably Morgan Stanley’s could have been currently has assets of $1.7 billion, few years,” says tial acquirers not necessary as an employee-reten- $62 million, on $24.7 billion. enough for only about 3,400 claims. Robert Hazlett, include tion gambit in today’s economy. “It’s not pleasant, believe me,” While the world eagerly awaited equity analyst at France’s Sanofi, “Have you seen anyone with says SIPC President Stephen Har- Mr. Madoff ’s guilty plea last week, a BMO Capital Markets. “That is a London-based AstraZeneca and hands up looking for people?” asks beck. “We have gotten a few com- dozen of his victims received their significant problem for manage- even New Brunswick, N.J.-based Bruce Ellig, an adviser to corporate plaints, but most people understand $500,000 compensation checks in ment.” Johnson & Johnson. boards. “This is a buyer’s market. why we have to do it.” the mail. SIPC is sending another The Manhattan-based compa- Bristol-Myers says it does not Losing executives is a low risk.” All registered broker-dealers pay batch of checks this week. ny’s patents for Plavix and Avapro, comment on merger and acquisition How the executives’ new options into the Washington, D.C.-based “You can expect this process to ac- used to treat high blood pressure,are speculation. Perhaps that’s quiet math will work out is anyone’s guess organization, which was set up near- celerate,” Mr. Harbeck says.
expected to expire in 2012, the same confidence: The company “has the at the moment.The highest closing balance sheet to acquire,” according share price in December was $3.28 to a recent Deutsche Bank research on Dec.12,and the lowest was $2.00 note that cited growth in fourth- on Christmas Eve. The high-low quarter cash and cash equivalents to range from mid-February through $8 billion. Profits last year increased last week was $2.86 on Feb. 24 and 37%, to $1.74 earnings per share, on $1.65 on March 9. Shares closed revenue that grew 13%, and the Friday at $1.89. company expects to earn $1.85 to $2 The Claiborne filing also noted per share this year. that Mr.McComb received a total of A rich dividend also helps some $127,200 last year—more than investors feel they are almost getting $10,500 a month—to lease a New paid to own the stock, analysts note. York City apartment for occasional The company’s return on equity of stays in town. His total compensa- 30% outpaces the industry’s average tion for the year was $5.5 million. of 16%, according to Zacks Invest- Liz Claiborne’s revenue fell 10% ment Research.Shares are down just last year, to $4 billion. Last month 3% over the past 12 months, closing the company announced it would last Friday at $20.95. eliminate 725 jobs.

CRAIN’S AWARDS SEEKING TOP ENTREPRENEURS IN NEW YORK CITY CRAIN’S SEEKS NOMINATIONS for its 14th annual awards for top entrepreneurs, formerly called the Small Business Awards. The six winners will have distinguished themselves by showing a pattern of growth in their businesses and contributing to their communities’ quality of life. Business owners must be running for-profit enterprises that have been in business for at least three years. They must employ no more than 150 people, have annual sales of no more than $40 million and be headquartered in New York City. Entrepreneurs can nominate themselves or they can be nominated by a business contact. The entry deadline is noon on April 1. Winners will be profiled in the June 1 issue. To nominate someone, send his or her name, address and a letter detailing commercial and civic accomplishments to Crain’s Top Entrepreneur Awards, 711 Third Ave., New York, NY 10017. The information can also be e-mailed to [email protected] or faxed to (212) 210-0799. © 2009 Town Of Hempstead. All rights reserved.

4 | Crain’s New York Business | March 16, 2009 Project5 3/10/09 1:56 PM Page 1

MESSAGE IN A BUILDING FOR FRAGRANCE INDUSTRY LEADER

REINVENTING THE WORLD’S MOST FAMOUS OFFICE BUILDING

The Empire State Building design is a trademark of ESBC.

COTY, THE WORLD’S LARGEST FRAGRANCE COMPANY, WAS SEEKING 88,000 SQUARE FEET FOR THE EXPANSION OF ITS NEW YORK OFFICES. The right address would reflect the company’s entrepreneurial spirit, passion, innovation, creativity and its status as a recognized leader in global beauty. Coty selected two contiguous floors at The Empire State Building. Midtown’s newest addition to the W&H Properties Pre-War Trophy portfolio offers full floors from 25,000 – 50,000 sq. ft. White-boxed spaces ready for installation from 10,000 sq. ft. Pre-builts from 2,500 – 5,000 sq. ft. COME SEE THE WORLD’S MOST FAMOUS OFFICE BUILDING AND GIVE US THE CHANCE TO COMPETE FOR YOUR BUSINESS.

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W&H09-0190 ESB Coty_Crains.indd 1 3/9/09 1:57:22 PM CNYB 03-16-09 A 6 3/13/2009 7:19 PM Page 1

NEW YORK,NEW YORK Rockefeller Center edited by Valerie Block

is pleased to announce the following expansion DIRECTV 80 new plays and serves more than represented by 125 children a year, is building a Arthur J. Mirante II, 17,000-square-foot, $15 million Adam S. Rappaport home on 10th Avenue and West 53rd Street.The space, which & C.L. Baskin Jr. of includes a 150-seat theater, will Cushman & Wakefield, Inc. open in August. The 52nd Street Project will be the first of three arts groups to for leasing information, please contact: move into the building; the others Peter R.C. Brindley are the Alliance of Resident Theatres and the off-Broadway Heather Kahn company MCC Theater.The Blythe R. Kinsler nonprofit raised all but $500,000 Theodore J. Koltis of its $19 million goal, and secured a bridge loan for the construction, right before the recession started. New Jersey’s own Yankee Clipper “I am really relieved,” says Carol 212.715.0300 Ochs, executive director of The hen baseball season begins next month, 52nd Street Project. “It’s so close Yankee fans in New Jersey can sail to the new now that we will persevere.” stadium to see Derek Jeter and teammates. SeastreakWwill transport Monmouth County residents to the Trinkets ballpark in just one hour, which is half the time it would for trendies take by car or train. And instead of sitting in traffic or getting jostled on the subway, passengers can enjoy fresh air rocker justin tranter, the lead singer of glam band Semi and a little local scenery. Precious Weapons, who The ferry operator bought 50 Yankees tickets for each moonlights as a jewelry designer, weekend game the Bombers play in the Bronx. It is working is at it again. He recently launched on a similar deal with the Mets. a line of earrings—Vamp by The catch? Jersey fans will need to dig deep to come up with the $85 per-person fee, which includes round-trip fare and the price of one seat. Seastreak owner James Barker says the package is $15 less than the company had originally budgeted. “We got a tremendous number of requests from NYPLExpress our riders to go to Yankee games,” says Mr. Barker. “I think we’ll sell out pretty quickly.” The New York Public Library People who have their own game tickets can simply ride Fetty—at Barneys New York, the ferry for $55. priced at $110 to $300. Mr. Tranter hopes the broken hearts Industry insiders expect RXP will attract shoppers looking for Plunging revenue to eventually flip again, but the affordable. “They’re earrings Research and worldwide document delivery killed K-Rock K-Rock’s move may have bought that women can wear every single it some time—if the station can day, but they still have a nice rock- Order online or by telephone plummeting ad revenue played lure some of WXRK’s listeners. and-roll edge,” he says. a big part in K-Rock’s Most of them will likely head to Two-year-old Fetty has four Electronic delivery to your desktop transformation last week to 92.3 top rocker WAXQ-FM. “There other lines selling at Barneys and Now FM, a Top 40 format. will be some added benefit with some boutiques, and a lower- Advertising revenue for the New K-Rock going away,” says Emmis priced label retailing at trendy Access information on all subjects York marketplace plunged 30% in New York General Manager Alex Urban Outfitters. His jewelry February, according to the most Cameron. rang up total retail sales of around Payment by credit card available recent Miller Kaplan report. And $300,000 in 2008, Mr.Tranter that was after a 21% drop in says. January. Kid playwrights It’s been a punishing market get own stage Contributors: Lisa Fickenscher, Matthew Fast, Efficient, and Confidential for the past year, especially Flamm, Adrianne Pasquarelli for the lower-ranked stations. next month, actors Billy Take K-Rock rival WRXP- Crudup (left) and Martha FM.The Emmis Plimpton will perform EEK! A BEDBUG BIT ME tel: 212-592-7200 fax: 212-592-7215 Communications station at The Public NEW YORK WON the dubious dis- saw revenue sink 56% for Theater plays tinction of having three hotels in www.nypl.org/express [email protected] the nine months ended written by inner- TripAdvisor’s 2009 Dirtiest Nov. 30, according to a city kids for a Hotels in the U.S. recent SEC filing.The nonprofit called rock format replaced The 52nd Street They are: smooth jazz CD 101.9 Project.The next 1. Hotel Carter, 250 W. 43rd St. last February. Arbitron time the kids’ plays 3. New York Inn, 765 Eighth Ave. ranked RXP 25th in the are performed, it will market in January with a be on their own stage. 9. Ramada Plaza Hotel, JFK 1.1 share. K-Rock was The 28-year-old International Airport ranked 21st. nonprofit, which creates getty images 6 | Crain’s New York Business | March 16, 2009 Project5 3/10/09 1:57 PM Page 1

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SLG09-0117 100PARK_AD_FP_Crains.indd 1 3/9/09 5:11:02 PM CNYB 03-16-09 A 8 3/13/2009 8:52 PM Page 1

leave the system when they are va- cated and their rents have hit $2,000 Landlords squeezed a month—a ceiling that limits the Rallying for tax hike impact largely to Manhattan. Continued from Page 1 sion stands, it could cost Tishman Andrew Hoffman, who owns Continued from Page 3 and Gov. David Paterson, their ap- will also force many units back into Speyer $200 million in rent refunds. three buildings with a total of 700 a party spokesman put it, is being proval will be assured. regulation—a move that would re- The threat comes at a time when units that might be affected, says it watched a thousand times a day. “We haven’t won anything yet, quire landlords to make retroactive the sprawling complex is already is too soon to determine the effects “It certainly has made a differ- but I feel like we’re winning the de- rent refunds to thousands of tenants. losing money. In 2006, Tishman of the ruling,especially since it could ence,” says Assemblyman Jonathan bate,” says Mr. Cantor, who has run By most estimates, the ruling Speyer paid $5.4 billion for the be overturned. Bing, D-Manhattan, pointing to the party since its creation. could cost New York landlords hun- buildings,with an eye toward quick- “As far as I’m concerned,nothing identical bills in the Assembly and State Sen. Eric Schneiderman, dreds of millions of dollars. ly deregulating rents to help pay off is going to happen in my buildings Senate that would raise rates on D-Manhattan, who is carrying the “I think the ruling puts a lot of debt. That effort has gone far more now,” Mr. Hoffman says. “I don’t people with adjusted gross incomes bill in the Senate, says: “They’ve buildings under huge financial slowly than expected, forcing the think a tenant can come to me and above $250,000. been moving public opinion. And stress,” says Frank Ricci, director of complex to burn through millions of say,‘You can’t deregulate me.’ ” they have been effectively reaching government affairs for the Rent Sta- dollars it held in cash reserves. In If Mr. Chanko’s class-action Targeting opponents out to those of us in the Legislature bilization Association. “It has the January,Fitch Ratings said the com- lawsuit succeeds, tenants will have it is not just the advocacy cam- to encourage us—to show that not potential to cause bankruptcies.” pany had only six months of reserves that right. Jack Turner, Mr. paign, Mr. Bing says, but the Work- only is this the right thing to do, it’s The landlords’ nightmare started remaining for a crucial portion of Chanko’s lawyer, says that since the ing Families Party’s ability to oust the politically popular thing to do.” two weeks ago, when the Appellate the debts on the property. ruling,he has received about a dozen incumbents that grabs legislators’ The opposition has been meek Division of New York’s Supreme calls from tenants seeking advice. attention. Indeed, the party cam- by comparison. A conservative po- Court ruled that apartments in Victims list Ironically, the potential number paigned relentlessly for months be- litical action committee, New York- buildings that receive J-51 tax abate- while tishman speyer may be the of renters involved and the sheer fore last November’s elections to ers for Growth,started an online pe- ments must remain rent-regulated. biggest victim of the court’s decision, complexity of sorting out their com- evict state Senate veterans Serf Mal- tition, and the Real Estate Board of The decision stemmed from a it’s not alone. At this early stage, di- pensation claims for back rent could tese and Caesar Trunzo, resulting in New York put together a group 2007 case brought by residents of vining which landlords might suffer ultimately work in landlords’ favor. the Democratic takeover of the Stuyvesant Town and Peter Cooper is difficult,but industry insiders note “If it is too complicated, people chamber.That,in turn,has made Village, who alleged that Tishman that Westbrook Partners, Parkoff won’t apply,” says Michael McKee, the tax increase achievable. Speyer and previous landlord Met- Management and Laurence Gluck treasurer of the Tenants Political The Working Families Party ropolitan Life illegally deregulated may feel an impact. Westbrook al- Action Committee. was founded in 1998 by labor apartments and wrongfully raised ready lost a case in which it attempt- He also cites city statistics show- unions and liberal groups with rents while receiving the tax benefits ed to deregulate an apartment in a ing that rent-regulated buildings the goal of pulling the Democ- awarded for building improvements. building with a J-51 tax benefit. enjoy an average operating profit ratic Party to the left.The Unit- However, Tishman Speyer was fol- Westbrook and Parkoff executives margin of 37%. ed Autoworkers, advocacy lowing standard industry practice. couldn’t be reached for a response. “Every time there is anything group Acorn, the Communica- Tishman Speyer, which declined Mr. Gluck had no comment. that is remotely pro-tenant, the tion Workers of America, the to comment, filed last week to re- About half of the city’s 2 million landlords say there’ll be widespread Laborers Union and Citizen quest a stay and an appeal.The appeal rental apartments are regulated. building abandonments and fore- Action were involved from the may not be granted, since the court’s Apartments can be deregulated for closures,” says Mr. McKee. “They’ll outset; health care workers decision was unanimous. If the deci- several reasons, but the majority be fine.”
union 1199 SEIU and the Unit- ed Federation of Teachers joined soon after. The party secured its own GE stock brings breakup to light ballot line, on which candidates from other parties can run. New York’s unusual fusion voting sys- Continued from Page 1 $37 billion, according to brokerage Capital will remain profitable, al- tem allows votes from different WORKING FAMILIES is moving public opinion. losses it faces.To gather that cash in firm Sterne Agee. though he expects operating earnings ballot lines to be combined, so this uncertain market,GE may have As the profits rolled in year after to decline by two-thirds this year. Working Families is not relegat- no choice but to keep the finance year,investors didn’t ask many ques- ed to running “spoiler” candidates, called Taxpayers for an Affordable unit and shed other declining assets, tions. “No one was paying close at- Depressed results—for years Executive Director Dan Cantor New York,which includes the Busi- such as NBC, headquartered in tention as GE Capital was built— longer term, results are likely to says. ness Council of New York State. Rockefeller Center’s General Elec- and we’re paying the price for that,” remain depressed for years as GE The tax bills will almost certain- The latter group sent a mailing to tric Building. says Peter Sorrentino, a senior port- grapples with its troubled loan port- ly be folded into legislation estab- 125,000 high-earning households With more than $600 billion of folio manager at Huntington Pri- folio.The company forecasts $8 bil- lishing the next state budget, which and launched a Web site that has assets,GE Capital would rank as the vate Financial Group, which man- lion in charge-offs this year, but in- is due March 31. Revenue raised by generated 1,000 e-mail messages to nation’s seventh largest bank, just ages about $15 billion in assets and vestors are betting on closer to $31 the increased taxes will be used to legislators. behind Morgan Stanley.It is such an owns GE shares. billion.While the company denies it fund education, health care, and albatross now that investors value it It’s apparent now that GE was a will need to raise capital to shore up other areas dear to the party and Getting message out at less than zero. Some say it’s time fairly subpar lender and has little the unit, Citigroup says GE would other members of its “Fair Share Tax the fair share site, meanwhile, for the company to follow Citi- cushion to absorb losses. need to inject about $20 billion in Reform” coalition—1199, the UFT has generated 25,000 e-mails in ad- group’s playbook and break itself up. Delinquencies in its consumer cash to improve its ratio of tangible and New York State United Teach- dition to arranging the rallies, let- “If GE Capital can’t carry its mortgage portfolio hit 10.7% last equity to tangible assets, a key ers, Acorn, the United Auto Work- ters, commercials and personal weight,is there any point in keeping quarter, according to Citigroup re- barometer of financial health. ers,the Communication Workers of meetings with lawmakers. GE together?” asks Edward Gre- search,compared with an average of Fortunately,even in its weakened America, nonprofit social services “They have a system, a very beck, chief executive of debt-strate- 3.0% for major U.S. banks. Its com- state, GE could raise that much providers and others. powerful system, for raising money gy firm Tempus Advisors. mercial loan delinquency rate money—though at a steep price. “The Wall Street meltdown has and taking over the airwaves,” says reached 2.2%, vs. the U.S. bank av- One way would be to sell NBC,a di- permanently knocked several bil- Kenneth Adams, president of the “Committed” to GE Capital erage of 0.9% for commercial and vision that research firm Credit- lion dollars out of the core of the business council.“Millions of aver- a spokesman says General Electric industrial loans. Meanwhile, loan- Sights estimates is worth nearly $20 state’s tax base, and threatened all of age New Yorkers across the state is “committed” to GE Capital, say- loss reserves equal just 1.4% of as- billion. But amid a dismal environ- the money that flows to their pro- don’t have those systems—and ing it has been “a strong earnings sets, according to Sterne Agee, or ment for media concerns,NBC’s op- grams,” says E.J. McMahon, direc- frankly, neither does the business contributor over the many years.” $5.3 billion. In comparison, Citi- erating profits are forecast to tumble tor of the Manhattan Institute’s community—to mobilize to op- Indeed, until last week the sto- group’s loan-loss reserves equal 15% this year,so it’s unclear whether Empire Center for New York State pose this.” ried finance unit was the jewel in its 4.2% of loans. The median for the any private equity investor or media Policy. “They need a permanent re- Mr. Schneiderman says the Fair parent’s crown. major U.S. banks: 2.3%. giant would want to cut such a big placement for that money.” Share campaign has tapped into the GE Capital generated $12 bil- GE has certainly taken steps to check. The GE spokesman insists To appease the more conserva- growing public sentiment that “the lion of operating earnings in 2007, shore up its finance unit, kicking in “we are not selling” NBC. tive Democrats in the Senate, a redistribution of wealth to the when it made as much as GE’s core $15 billion in fresh cash last year and Another, less likely, scenario compromise is expected.The 10.3% wealthy went too far.” But Mr. industrial divisions put together, cutting its dividend last month—for would be for GE to spin off its fi- top marginal rate in the bill, which McMahon says the Working Fami- and profits more than doubled over the first time in 71 years—to con- nance unit, which would likely help would tie California’s as the nation’s lies Party and its allies have used a five-year stretch starting in serve $9 billion in cash. A revive its devastated stock price by highest, could be lowered to 8.97%, “class warfare” to “create the illusion 2003.The finance unit’s growth ac- spokesman says going forward the freeing the company’s more highly matching New Jersey’s. Or the ad- of a mass movement.” celerated under former CEO Jack unit will be “smaller” and “more fo- valued parts from the despised fi- justed gross income that triggers a Whatever the case, it’s working. Welch and reached unprecedented cused.” nancial services business. Still, that higher rate could be raised to “Lawmakers are very skittish heights as current CEO Jeffrey Im- Mr.Immelt last week insisted that would be a tough sell to investors. $350,000 or so. But the current rate and easily swayed by any sign of or- melt pushed into emerging markets losing the top-notch credit rating “At this point,”says CreditSights of 6.85% on all income over $40,000 ganized activity,” Mr. McMahon and real estate.GE Capital’s real es- won’t hurt GE’s overall business. analyst Richard Hofmann, “it’s a appears to be doomed. Once the says. “Especially when there’s no tate portfolio more than doubled Even skeptics like Sterne Agee ana- question whether GE Capital could new rates are part of a state budget sign of organized activity counter- between 2005 and 2008, to about lyst Nicholas Heymann believe GE even survive on its own.”
agreement between the Legislature ing it.”

8 | Crain’s New York Business | March 16, 2009 CNYB 03-16-09 A 9 3/13/2009 3:00 PM Page 1

during the 2005 transit strike. To keep it afloat,he has spent his less,he says it makes sense for a pub- After the US Airways crash own money, including $20 million lic transportation system to run the Ferry sends S.O.S. landing, NY Waterway was unable in the past three years alone. ferry business. “If public agencies to operate some of its routes for see this as a good time to take over, Continued from Page 1 system and should be supported by nearly 48 hours. In addition, it paid Bailed out before then it’s a vision I can embrace,”says commuters. Revenue has been de- public funds. He is likely to file for employees overtime and incurred the last time Mr. Imperatore’s Mr. Wachtel. clining since autumn and is now off bankruptcy if he doesn’t get his wish. other expenses that it’s still assessing venture ran into serious financial It’s unclear whether government by $800,000 a month. Complicat- Captain Robert O’Brien, the as it prepares its claim against the trouble, in 2005, real estate lawyer agencies agree.A spokesman for the ing matters, the company’s three- U.S. Coast Guard’s most senior offi- carrier. Apart from the monetary is- William Wachtel bailed it out. He Port Authority says, “We have a year equipment loan—which ex- cial in New York, is concerned about sue, Mr. Imperatore is miffed that took over 16 of the company’s 34 strong commitment to a healthy re- pires in September—will not be NY Waterway’s financial troubles. the airline’s senior officials have yet boats—including the debt pay- gional ferry service,and we have on- renewed by its lender, CIT Group, “They are generally the Good to acknowledge his company’s role. ments—and formed a separate going discussions with our part- as that financial company moves to Samaritan that responds to any Mr. Imperatore, the youngest of company, BillyBey, which pays NY ners,” but he declined to elaborate minimize risk. emergency on the water,” he says. nine children, made his fortune in Waterway licensing and manage- on specific talks with NY Waterway. Mr. Imperatore wants a public During the 2003 blackout, the the trucking business.The 83-year- ment fees to run that business. Mr. Imperatore doesn’t relish agency,such as NJ Transit or the Port firm ferried 150,000 people out of old multimillionaire started the fer- Mr. Wachtel says that while rid- ceding the company to others, but Authority of New York & New Jer- Manhattan for free, forfeiting more ry service 20 years ago after purchas- ership is down on his routes from he simply can’t support it anymore. sey, to acquire his company. He ar- than half a million dollars in fares.It ing two miles of waterfront property Hoboken and Jersey City to the “I don’t have any more money to gues that the commuter ferry busi- also helped move people out of in Weehawken, N.J., hoping to lure World Financial Center, BillyBey is invest,” he says. “It’s like a bottom- ness is part of the mass-transit Manhattan on Sept. 11, 2001, and residents to the community. “not in financial straits.” Neverthe- less pit.”
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March 16, 2009 | Crain’s New York Business | 9 CNYB 03-16-09 A 10 3/13/2009 12:19 PM Page 1

VIEWPOINT Give back the bailout money editor in chief Rance Crain publisher, vp Jill R. Kaplan ast year, Joseph DePaolo decided that best and can’t foreclose on any homeowners. editorial director Greg David a little slice of the money from the If Signature, Goldman and J.P.Morgan escape from EDITORIAL editor Xana Antunes $350 billion federal bank bailout would be TARP,they will become magnets for the best talent in the managing editors Glenn Coleman, Robert Hordt a low-cost way to finance Signature industry.They will gain market share at the expense of their deputy managing editors Valerie Block, Erik Ipsen Bank’s plans to expand its lending. So the hamstrung rivals. Investors will bid up the stock of the non- contributing editor CEO of the middle-market lender, which TARP institutions,which will be able to go on acquisition Elizabeth MacBride columnist Alair Townsend specializes in real estate, took $120 million binges, adding to their clout. senior reporters Theresa Agovino, in TARP funds. The good news is that such developments will increase Aaron Elstein, Erik Engquist, Lisa Fickenscher, Now, Mr. DePaolo has told the Treasury Department he’s the pressure on many other institutions to repay their Matthew Flamm, Miriam Kreinin Souccar L reporters Barbara Benson, Amanda Fung, going to return the money as soon as the government draws federal bailout money so that they can keep pace.The bad Daniel Massey, Adrianne Pasquarelli, up the form that will allow him to do so.The many news is that failure will be all the more likely for those that Hilary Potkewitz, Gale Scott, Matthew Sollars restaurant critic Bob Lape restrictions that Treasury and Congress have imposed are can’t get out from art director Steven Krupinski simply too onerous. Expect Goldman Sachs, J.P.Morgan federal control, and the deputy art directors Carolyn McClain, Banks must Daniel Mednick Chase and maybe even Morgan Stanley to be close behind. cost to taxpayers will be staff photographer Buck Ennis More power to them. Banks and securities firms must get get out of the steep. copy desk chief Wendy Zuckerman out of the bailout program if they are to thrive—and if the Unfortunately, too copy editor Thaddeus Rutkowski program if they research editor Denise Southwood financial industry and New York are to recover. Wall Street- many in the media have www.crainsnewyork.com are to thrive web editor Brian Tracey hating Americans have made it too difficult for these bought into the senior producer Elisabeth Butler Cordova institutions to run their businesses. populist frenzy, producer Kira Bindrim Citigroup found itself the target of more outrage last believing that people EDITORIAL AND ADVERTISING OFFICES week after giving its best-performing brokers gift cards on Wall Street should 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 worth a couple of grand in lieu of sending them to a suffer because they advertising: 212.210.0259 planned sales conference in Las Vegas—although that’s alone caused the economic meltdown, and that they Cable craincom nyk Fax 212.210.0499 standard practice for employees whose compensation is shouldn’t be paid any more than anyone else because “it’s our Entire contents ©copyright 2009 Crain based on commissions. In addition, institutions now face money’’—irrespective of the consequences. A recovery may Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP strict limits on executive compensation, dare not hand out depend on whether the Signatures, Goldmans and J.P. Inc., used under license agreement. bonuses, can’t spend their marketing dollars as they think Morgans can save the economy in the face of public anger. TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. $3.00 a copy, $59.79 one year, $109.79 two years. www.crainsnewyork.com LETTERS TO THE EDITOR ADVERTISING AND MARKETING senior account managers Cornelius P. Gore, William E. Squitieri commercial real estate sales manager Cory Marks account executives Let’s hear it for small, local banks Irene Irvill, Courtney McCombs, Anthony Mowad sales manager, classified print & online John Gallagher NY’s ‘WOBBLIEST’ BANKS? the city is slipping back to its at the time of his death. This sales coordinator, print & online “grittier” days. More Broadway income is entirely at risk, depend- Lulé Haznedari WHAT ABOUT ITS BIGGEST? Anita Perrino shows have opened this year than ing on the company’s stock price sales coordinator credit Todd J. Masura 313.446.6097 i was surprised at the tone of in any other since 1986. New performance over three years’ marketing director Amy Crossman your March 2 article “Meet NY’s hotels continue to open because of time. marketing manager Jill H. Bottomley wobbliest banks.” their long-term confidence in peter thonis circulation manager Andrea Richardson I think it is undeniable that New York. Chief communications officer assistant circulation manager New York’s wobbliest bank is kimberly spell Verizon Rosalie Ford Citibank, not Park Avenue Bank Senior vice president general manager, interactive or Emigrant Savings Bank. NYC & Co. THE REAL POINT Marc Minardo The Texas ratio of Park web developer, interactive OF TAX INCREASES Chris O’Donnell Avenue Bank you cite is from the COMPLAINT OVER VERIZON fourth quarter. It does not take CEO COMP IS BASELESS crain’s march 9 editorial on tax NEW YORK PRODUCTION into account management’s recent increases for the wealthy misses production and pre-press director infusion of capital or its focus on your article on executive the point entirely. Changes in tax Michael Corsi addressing the bad loans in the compensation (March 9) takes a rates are not about the potential advertising production manager portfolio. Once this work is com- gratuitous swipe at Verizon’s for increasing tax revenues at the Suzanne Fleischman Wies pleted, Park Avenue Bank will be jr harry pulver policies. While rightly calling local, state or federal level. It is PUBLISHED BY CRAIN COMMUNICATIONS INC. a strong local financial institution. DON’T COUNT OUT Verizon a company that has about trying to return a semblance chairman Keith E. Crain Emigrant also has strong and NEW YORK CITY “better aligned its pay policies of progressivity—meaning president Rance Crain committed management. It has a with the times,” the article goes on fairness—to tax codes that have secretary Merrilee Crain well-funded owner’s group that we believe crain’s March 2 to quote two pension funds that been severely distorted to favor the treasurer Mary Kay Crain can assist the bank with its capital article “Shine comes off Big argue shareholders should not pay very wealthiest 1% of the country’s executive vp, operations William Morrow senior vp, group publisher Gloria Scoby needs, if necessary, and see that Apple” is completely misleading. for unearned compensation— population and very large group vp, technology, circulation, this institution survives. While everyone is in the mid- citing, inaccurately, our CEO’s businesses, to the detriment of manufacturing Robert C. Adams Just ask yourself: Would you dle of a global recession, New death benefit. everyone else. vice president/production & rather have money in a bank whose York City remains an aspirational In fact, upon the death of Veri- It’s time to stop whining that manufacturing David Kamis investors and management can and and successful visitor destination. zon’s CEO, not a single dime of the very rich may move from chief information officer Paul Dalpiaz will inject capital or in a bank Yes, we are experiencing some “severance” would be paid to his Scarsdale to Scottsdale, or that corporate circulation director where management is fighting over contraction against a record- estate. A portion of his death ben- Corporation Bloat may move Patrick Sheposh the size of their annual bonus? breaking 2008, but in this tough efit would be a payment from his technical support to Mumbai. founder G.D. Crain Jr. (1885-1973) mitchell fillet economic climate, we continue to life insurance company, and They’ll do it anyway. Let them go. chairman Mrs. G.D. Crain Jr. (1911-1996) President outpace the national average for another potential portion would I’d be very happy not to have to Riderwood Group Inc. hotel occupancy by 20 points, on be the payment of previously subsidize them anymore. Towson, Md. average, and there is no evidence reported income that would vest miriam s. michel

10 | Crain’s New York Business | March 16, 2009 CNYB 03-16-09 A 11 3/13/2009 10:50 AM Page 1

will decline the most precipitously: 17% this year and 22% next year. Few people with jobs are com- plaining, even if they are among the many whose pay has been frozen or cut, or whose employers have stopped matching retirement con- tributions. Across the city, in every sector, employees and business owners are making whatever accommodations they must and hunkering down with one thought: economic survival. In Albany, legislators are look- ing at the growing budget deficits that the city and the state face and hunkering down with one thought: political survival. That means rocking few boats and fol- lowing a strategy of denial, deferral and demagoguery. Lawmakers deny the problems and their components for as long as possible. They insist that Med- icaid spending that is more than john h.john howard twice the national average per resi- dent isn’t a problem but a measure of our humanity.They don’t consid- er public-employee pension and Pols’ dream world health care plans overgenerous or unaffordable, but rather service rewards that all employers should emulate. They can’t imagine freez- impedes recovery ing public employee salaries. They don’t think it’s wasteful to give so much education aid to wealthy he bad news just won’t quit. school districts. A midtown tower bought for $950 million in Deferring tough choices, they resort to such gimmicks as grabbing 2007 recently sold for about $350 million. reserves from every authority, fund The New York Times Co.has suspended its div- and program they can find. They idend; CBS has reduced its dividend. want to use federal stimulus funds to Senior staffers at the Metropolitan Opera are taking 10% pay offset reasonable cuts proposed by T the governor rather than use them to cuts. At New York City Ballet, 11 dancers were let go. close the budget gap. They then demagogue that the The state’s incentive since August, and the rich don’t pay their fair share, and LEADERSHIP CHALLENGE fund for movie produc- rate is accelerating. they prepare to raise income tax WORKSHOP tion has run dry, and The city’s Indepen- rates. What’s “fair” is merely a ques- productions are going dent Budget Office es- tion of how much revenue they “All LEADERS are born, elsewhere. A local timates that 270,000 need. Despite evidence to the con- but EXEMPLARY leaders are MADE.” prop-rental company jobs will disappear from trary,they assume no damage to our has filed for bankruptcy. the first quarter of 2008 competitive position and no reloca- based on the best-selling book Empty storefronts, through the second tion by the “rich.” The Leadership Challenge by Kouzes & Posner like missing teeth, af- quarter of 2010. Finan- By not making tough choices flict every neighbor- cial services will be hit about what government can afford, hood, including mine. especially hard. our legislators are living in a dream Citigroup shares ALAIR The IBO also proj- world, cosseted from the economic A Highly Interactive Program to Help broke a buck. TOWNSEND ects that city tax revenue realities the rest of us face every day. Middle- and high- will fall 7% in the cur- Their disconnect will impede our Executives and Managers Become end stores are empty of rent fiscal year and 6% in recovery and will continue to keep shoppers. the fiscal year beginning July 1. The state government much more ex- EFFECTIVE TRANSITIONAL LEADERS The city has shed 85,000 jobs yield from personal income taxes pensive than it should be. HAUPPAUGE,NY March 30th-April 1st, 2009 CRAIN’S ONLINE POLL $1,195 8:30am - 4:30pm Payment required in advance MC/Visa/AMEX Sheraton Hotel, 110 Motor Parkway Will consumer spending heat up this spring? Hauppauge, NY 11788 254 VOTES Date of poll: March 9

Yes. The end of The Five Practices of Exemplary Leadership: winter will give .24% • Model the way people a sunnier • Inspire a shared vision disposition. No. Dark • Challenge the process 48%. days still • Enable others to act Not sure. One lie ahead. • Encourage the heart improved weekend is not enough to .28% indicate that things Includes all course materials, plus 11 weeks post-class coaching and continental breakfast and lunch daily. are turning around. TO REGISTER OR FOR MORE INFORMATION, VISIT WWW.MICHAELPALAZZO.NET For this week’s questions: Go to www.crainsnewyork.com/poll to have your say. or call (919) 521-4700 ext. 101 • Fax completed registrations to (919) 724-4114 istockphoto

March 16, 2009 | Crain’s New York Business | 11 CNYB 03-16-09 A 12 3/12/2009 8:15 PM Page 1

NEIGHBORHOOD JOURNAL Coney Is. plan a go, but void remains

plan’s impact unlikely to be felt for mix of shops and indoor amuse- the void left by Astroland by bring- Empty lots mean several years, Coney Island denizens ments on another 16 acres. ing in some sort of amusements, but a summer bummer; are increasingly concerned about The rub is that those lots will be details are sketchy.Meanwhile,local what will happen there this summer, even emptier this summer than last. politicians and businessmen alike Astroland to stay dark and for the next few after that. As the attractions reopen in the are becoming anxious. The city’s blueprint promises to spring, the Astroland amusement “Our goal is to have some sort of he city’s plan to rede- fill many of the area’s empty lots park will stay dark for the first time amusement going on that property velop Brooklyn’s famed with bright, clean, state-of-the-art in nearly four decades. this summer,” says Councilman but badly faded Coney amusements. The centerpiece is an Thor Equities, which owns a to- Domenic Recchia, who has been Island strip took an im- 11-acre park that will knit together tal of 10.5 acres on Coney Island,in- trying for months to broker a deal portant step forward last the Cyclone roller coaster, the cluding the Astroland site, is fight- for the city to buy Thor’s land. Tweek when the plan was approved by boardwalk and other Coney Island ing the city’s redevelopment plan. Community leaders maintain Community Board 13. But with the stalwarts. The plan also envisions a The company insists that it will fill that even without Astroland, the buck ennis HISTORIC SURVIVOR: Deno’s Wonder Wheel will be one of the few big attractions.

KEYNOTE 2009 HONOREES area will have plenty to offer this DIANE summer. SPEAKER VON FURSTENBERG Debra Carey “Coney Island is very much alive Chief Executive Officer University Hospital of Brooklyn for the summer of 2009,” says SUNY Downstate Chuck Reichenthal, district man- Medical Center ager of Community Board 13. He points out that annual events United Wayof New York City Marianne Cooper Managing Director like the popular Mermaid Parade Women United in Philanthropy IBM are still on the calendar, as are con- certs at the band shell. Meanwhile, 3RD ANNUAL AWARDS LUNCHEON Deno’s Wonder Wheel will still be Debra Fraser-Howze turning. And although Astroland Vice President will be closed, its most famous ride, THE POWER OF of Government and the Cyclone roller coaster, will be External Affairs OraSure Technologies running. —matthew sollars NancyGardner Executive Vice President and General Counsel Bank-starved Bronx WOMEN Thomson Reuters Markets TO MAKE A DIFFERENCE to get hungrier still Kim A. Healey wall street’s not the only neigh- Executive Director MONDAY, MARCH 23, 2009 NewAlliance Foundation borhood where banks are closing up 12:00 - 2:00 p.m. shop. Shock waves triggered by the financial turmoil of recent months Cipriani 42nd Street are flowing uptown to the Bronx as Daphne E. Jones WW Vice President, well. Information Technology At least eight bank branches Chief Information Officer there will close over the next several Join us in honoring twelve exceptional women Johnson & Johnson leaders creating lasting change in our communities. months as the result of last year’s Chris Meier shotgun marriage of J.P. Morgan GVP for Central Human Chase and Washington Mutual. GIVE. ADVOCATE. VOLUNTEER. Resources & Diversity The closings are going to hurt. Macy’s For years community and economic development groups have been de- Jeanne B. Mulgrav crying the lack of bank branches in LIVE UNITED Commissioner the Bronx. NYC Department of Youth and Community Development A recent study by the Neigh- borhood Economic Development Advocacy Project found that Bronx For more information, visit womenunitedluncheon.org or call (212) 251-4028 Anna Patruno Chief Financial Officer residents have the least access to Thomson Reuters Markets bank branches in the city—about 3,500 households per bank LEAD SPONSORS branch. That compares with 1,200 ______households per bank in Manhat- • COLLEGE BOUND • Lisa B. Peters Chief Human Resources Officer tan, where there seems to be one on VIP PRE-LUNCHEON Bank of New York Mellon every corner. RECEPTION Last October, a survey conduct- generously sponsored by ed for Democratic Rep. Anthony Jennifer J. Raab Weiner concluded that the city’s 10 President lowest-income communities could ______Hunter College lose a total of 14 branches. Four of • CLASS VALEDICTORIAN • those communities are in the Bronx: Tremont, Fordham, Belmont and Loretta A. Smith the South Bronx. Director of U.S. Corporate Giving The wave of bank openings National Grid that has angered residents in many parts of town has largely bypassed the Bronx. Unfortunately, the two banks that did expand up there were Washington Mutual and Chase, which in several areas opened up branches within blocks of one another. —hilary potkewitz

12 | Crain’s New York Business | March 16, 2009 CN012779 3/6/09 3:49 PM Page 1

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WEEK IN REVIEW JACK RESNICK & SONS For daily news updates, go to is pleased to announce the following new lease at www.crainsnewyork.com 250 HUDSON STREET IN HUDSON SQUARE

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110 East 59th Street, New York, New York 10022 212.421.1300 www.resnicknyc.com Banks indicate bailout’s working THE CHIEF EXECUTIVES OF THREE MAJOR BANKS said their companies operated at a profit during the first two months of the year, providing the first sign that the federal bailout program may succeed in salvaging the country’s financial system. Investors cheered as Citigroup Inc., J.P. Morgan Chase & Co. and Bank of America Corp. announced the news. CITIGROUP CEO VIKRAM PANDIT (above) made the first statement Wednesday, and the Dow Jones industrials gained more than 5.5%. bloomberg news

exodus follows Smith Barney’s loss Recession dims of 970 brokers during the fourth Buffett’s optimism quarter of 2008 for a full-year loss of 11%. billionaire Warren Buffett said the economy has “fallen off a cliff ” in the past six months as the Following Pfizer: economic turmoil followed the Merck expanding worst-case scenario he had envisioned. Consumers have drugmaker Merck & Co. agreed drastically changed their habits, he to buy rival Schering-Plough said. Unemployment will likely Corp. for $41.1 billion.The deal, climb near term, he added, noting which follows Pfizer Inc.’s that his long-term view remains announced merger with Wyeth, optimistic. will give Merck access to a pipeline of promising new products. It will The Carey building also cut costs by eliminating some 16,000 jobs. to raise cash,The New York Times Co. sold 21 floors of its headquarters building in midtown Landmarks OKs for $225 million.The newspaper St. Vincent’s design publisher will lease back the space saint vincent catholic Medical Centers cleared a key hurdle in its race to build a new hospital in Greenwich Village when the city’s Landmarks Preservation Commission approved the proposed facility’s design. Construction plans call for tearing down the 35-year- old O’Toole Building, which has been strongly

buck ennis opposed by the community. from the buyer, W.P.Carey & Co., Fashion fray in a 15-year deal. It has $350 million in loans coming due in two couture designer Eric Gaskins, years. one of the fashion industry’s few high-profile African-American Smith Barney bled designers, put his MGB Squared Corp. into Chapter 11 bankruptcy. a source close to Smith Barney Mr. Gaskins, who started his said the firm is losing reps and eponymous line 22 years ago, said advisers at an alarming pace, in the filing that the Department of bleeding some 539 brokers during Labor had threatened to padlock the first seven weeks of 2009.The his office doors.

14 | Crain’s New York Business | March 16, 2009 CNYB 03-16-09 A 15 3/13/2009 2:58 PM Page 1

Hero captain lands work permits for two cranes at the double book deal World Trade Center site. GGP cries mercy captain chesley sullenberger, the US Airways pilot who saved the troubled mall owner General lives of 155 people aboard flight Growth Properties Inc. asked 1549 by crash-landing safely in the bondholders, who hold $2.3 billion Hudson River, has sealed a book of its debt, to wait until the end of deal with William Morrow.The 2009 to call in payments so it can HarperCollins imprint will pay $2.5 refinance and stave off bankruptcy. It million to $3 million for two books, has $1.2 billion of past-due debt and according to publishing sources. $4.1 billion that could be called in. COZENCONFIDENCE Best Life ends; Stairway to Heaven Brooklyn pub sold goes bye bye bye magazine publisher Rodale classic rock turned to bubble- pulled the plug on Best Life, a men’s gum pop at K-Rock. Under periodical that reported average ownership of CBS Radio, WXRK- paid circulation of 526,000 over the FM, which relaunched as a rock Phil Kircher, Trial Lawyer second half of 2008.The Web site station in May 2007, went to a Top will also go dark in May. … Media 40 format with a new branding of mogul Rupert Murdoch made a 92.3 NOW-FM.The station will deal to buy The Brooklyn Paper,an target 18- to 34-year-old listeners Winning takes confidence. independent publication. to try to attract more advertisers. Whether you need an unrivaled trial lawyer or corporate counsel who understands your business, our attorneys JPM seals deal AmEx pay pinch have the training and flexibility to help you win. j.p.morgan chase & co. agreed to kenneth chenault, chief sell the portfolio of New York executive of American Express Co., For worldwide offices, visit us at cozen.com. Stock Exchange market maker received a pay package worth nearly Bear Wagner Specialists to Barclays $43 million last Capital Group. Financial terms year, down 17% were not disclosed.The deal will from his 2007 make Barclays Capital the largest compensation. designated market maker on the However, the New York Stock Exchange. bulk of his pay package consists Geoffrey D. Ferrer, Office Managing Partner of stock and 16th Floor, 45 Broadway

The Donald refutes bloomberg news New York, New York 10006 option awards, The confidence to proceed. state rent claims which are worth much less today. 212.908.1201 | [email protected] He declined a bonus for 2008. ®

new york state says Donald © 2009 Cozen O’Connor Trump owes about $207,000 in back rent on a beachfront AOL snags restaurant he’s developing. Mr. Google bigwig Trump’s lawyers say he doesn’t have to pay because the state held up the time warner inc. hired Tim project over a variance issue. … Armstrong, a former Google Inc. Separately, scarce mortgage executive, to serve as the new chief financing marred Mr.Trump’s Las executive of its AOL unit. Mr. Vegas condo project. Armstrong, who previously served as president of the Americas operations at Google, replaces the Daily News stomps outgoing Randy Falco. Ron Grant, ‘irresponsible’ blog AOL’s president and chief operating officer, is also leaving. the new york daily news lashed out at a blog that named it among Met shelves staff “The Ten Major Newspapers that the metropolitan Museum Will Fold or Go of Art announced it intends to Digital Next.” cut 74 jobs in its merchandising News executives department, including 27% of its called the post full-time and 9% of its part-time “irresponsible” staff.The cuts follow several and “baseless.” other cost-saving measures, The blog, 24/7 including the closure of eight Wall Street, stores, which eliminated 53 jobs. said the paper loses money and questioned the commitment of its owners. Family beach opening downtown Crane shame harbor experience cos. signed a the city’s department of five-year deal to set up an 18,000- Buildings confirmed that square-foot beach on Pier 17 at the contractor mistakes caused last South Street Seaport.The tourism year’s midtown crane collapse, company’s water taxi service will which killed seven people.The service the family-oriented contractors used four protective attraction, which will feature mini slings, including one that was golf, a seafood shack and a bar. frayed, instead of the required —from staff reports and eight. … The city also revoked bloomberg news reports CNYB 03-16-09 A 16 3/13/2009 1:37 PM Page 1

could qualify for general-election matching funds in midsummer if he can convince the Campaign THE INSIDER Finance Board that he is a sure winner in the primary. OUT OF JOINT: As by Erik Engquist and Matthew Sollars the state cuts funds for Governors Maloney may Island, the city seize the moment seeks control. republican consultant Susan Del ‘Goodnight, Gracie’ bolsters Bill Percio says there is reason to believe that Rep. Carolyn Maloney, D-Man- ity comptroller William Thompson (left) got a boost hattan, will challenge Gov. David bloomberg news from last week’s announcement by Rep. Anthony Weiner Paterson next year. Ms. Maloney can compete with FACE-OFF Throwing NYS off island? (right) that he won’t decide for several months whether C Mr. Paterson in New York City, RELATIONS BETWEEN Mayor Michael Bloomberg and Gov. David Paterson, to take on Mr.Thompson in the Democratic mayoral primary. which is his base, and she would which have been growing testy recently, bubbled over last week when the Mr. Weiner now appears to be unlikely to run. have an edge in the suburbs and up- mayor went public with his plan to take control of Governors Island and Tony Avella state, the consultant says. Moreover, Brooklyn Bridge Park. The projects have been under joint authority. Although City Councilman , D-Queens, she is a strong fundraiser and can remains in the race, Mr.Thompson should be able to shift According to insiders, the mayor proposed the plan to the governor in late tap into her personal wealth. February, but it went nowhere. Now, with an April 1 deadline looming, the city Ms. Maloney has motive—Mr. $6 million that had been budgeted for the primary to his felt it had to get things moving. general-election campaign.The Paterson bypassed her when filling Hillary Clinton’s Senate seat—and an Still, insiders are surprised at the mayor’s willingness to play hardball. financial boost more than independent streak. Furthermore, “When you’re negotiating across the table and all of a sudden you out compensates for the missed she’s not getting any younger, and something like this, that’s a sharp elbow on the playground,” says one insider. chance to gain momentum by she can’t put off her bid until Mr. “Bloomberg feels he can rough Paterson up on this.” Governors Island, which was left out of Mr. Paterson’s budget proposal winning a competitive Paterson leaves: Then state Attor- ney General Andrew Cuomo would in December, will shut down if funding isn’t found. The mayor argues that the primary, a Thompson run for governor, and he’d likely win. city is more invested than the state in keeping recent momentum on the supporter says. “This may be her shot,” Ms. island going.The same principle applies to Brooklyn Bridge Park, where Mr. Weiner’s Del Percio says. construction has begun after lagging for more than two decades. To fund the two parks, the city wants to redirect some of the money it has absence will make allocated to the expansion and renovation of the Jacob K. Javits Convention it easier for Mr. Carrión Center, saying that the work to be funded by that money won’t start for years. Thompson to carries on The governor’s office can’t be happy about solving the Governors Island raise money and problem by taking funds from another sluggish project—especially since the ink unless the news on Adolfo on the Javits expansion agreement, approved in January, hasn’t yet dried. But to develop his Carrión’s dealings with an by putting his plan out in public, the mayor raises the pressure on Mr. Paterson “contrast” with architect friend gets worse, and makes it less likely he’ll opt to shut the island down. The governor’s office Mayor Michael the former Bronx borough will say only that it is still working to find money in the budget. Bloomberg, the president will keep his post as One wild card: Assembly Speaker Sheldon Silver, whose district includes President Barack Obama’s source adds. Governors Island. Mr. Silver, who has disagreed frequently with the mayor, urban policy czar, sources say. may not want to give up his role in overseeing the island. The mayor’s office Mr.Thompson The Daily News revealed bloomberg news getty images says Mr. Silver was briefed on the plan, but a spokesman for Mr. Silver was not aware of it and would say only that he is working hard to restore funding for the island to the state budget.

last week that the architect did work She is known to immerse herself in on Mr. Carrión’s house in 2007, as planning details, even bench the borough president was recom- placement and brickwork style. mending approval of a large project Her supporters say she has designed by the architect. Moreover, raised the bar for architecture, Mr. Carrión hasn’t paid his $3,627 especially beyond Manhattan, and bill. He says the architect had not made development easier by finished the paperwork on the proj- rezoning broad areas. Mr. Lieber ect and therefore had not sent an praises Ms. Burden and says the invoice.The explanation came five city won’t change “the professional days after the paper requested it. and community involvement that The conflict of interest was un- we believe leads to great projects.” toward but not illegal, and the dollar amount was small, so Mr. Carrión has not been asked to resign. Prose- Cleaning up cutors are looking into the matter. on stimulus plan the mayor’s Long Term Planning and Removing a burden Sustainability Office will apply for from builders? $294 million in federal stimulus grants to encourage the use of deputy mayor Robert Lieber, who cleaner diesel engines. recently said, “Some projects take The city has already moved to too long,” is trying to shorten the retrofit small school buses and the time that it takes projects to get to Staten Island ferries to run on low- the seven-month public review sulfur diesel blends. Plans are in the phase.That can add a year or more works to put federal funds toward to the process and force developers replacing the city’s school bus fleet to guess what the market will look with cleaner vehicles on an acceler- like far into the future. ated schedule, and switching to Some developers quietly suggest green vehicles at ports and airports. one simple step: Curb the micro- The Environmental Protection management of projects by Plan- Agency started accepting grant ning Commissioner Amanda Burden. applications last week.
For daily political and government news, subscribe to CRAIN’S INSIDER @ www.crainsnewyork.com/insider

16 | Crain’s New York Business | March 16, 2009 CNYB 03-16-09 A 17 3/12/2009 7:09 PM Page 1

SMALL BUSINESS

both companies moved downtown this winter. Ronco now occupies al- But wait, there’s more in NY most 10,000 feet at 110 Wall St.; Vertex has 7,000 feet at 40 Wall. The company has hired four Though office rents have fallen staffers since its arrival, and plans Legendary gadget marketer Ronco finds by as much as 50%, the city is still call for taking on five more, Mr. Big Apple chock-full of talent, cheap space relatively costly, says Jack Petrie, a Nusbaum says. senior vice president at real estate Ronco has also been working firm CresaPartners. “You can find hard to regain its Popeil-era glory.It BY STEVE GARMHAUSEN talent and procure space in a global similar talent at a better cost basis” has expanded into other outlets, commercial center for far less than in other regions of the country. from Home Shopping Network to illionsof insomniac they could a few years ago. CVS to Wal-Mart.It has also added TV viewers have “If you’re going to do it, now re- On sale products, including the Coffeetime found the Popeil ally is the time,” she says. ronco brought eight employees Brew System, Mongolian Firepot

Pocket Fisherman, But Ronco doesn’t have much from California to midtown in and—not a moment too soon—an buck ennis Showtime Rotisserie company in exploiting New York’s April, sharing space with Vertex. updated version of the legendary SLICING, DICING: The city lends itself to MOven and spray-on “hair” irresistible emerging opportunities. Attracted to reduced-price space, Veg-o-Matic.
Larry Nusbaum’s outsourcing strategy. bargains.But a real steal would be the lease signed by the company that peddles those products. Ronco Acquisition Corp. nabbed former Lehman Brothers space on Wall Street in December for just $32 a square foot.That’s $10 below the asking price at the end of the second quarter,and the discount helps explain why Chief Executive Larry Nusbaum moved the compa- ny from Los Angeles. “New York real estate has just dropped like a rock,” says Mr. Nus- baum. “Two or three years ago, the by providing expert accounting services cost would have been prohibitive.” Additionally, the market for op- erations, financial and marketing talent in the New York region is such by minimizing your taxes that Mr. Nusbaum got what he calls your the “pick of the litter” by setting up helping operations here. One of his job list- business in by maximizing your personal wealth ings attracted 4,000 résumés. grow Ronco,which aims to turn its for- a tough tunes around in the Big Apple, is an economy by improving your profitability example of what good might come from the city’s economic misfortune. The company was going strong by identifying tax planning opportunities when inventor and über-pitchman Ron Popeil, who started Ronco in 1959,sold it for $55 million in 2005. by listening to your needs But Ronco was hurt by the new owners’ poor management deci- sions, including eliminating in- fomercials and distancing the com- by understanding your goals pany from its iconic founder. Annual sales dropped to $47 million in 2007—when Ronco also posted a by developing an effective business plan $7.5 million loss—from $100 mil- lion two years earlier. by providing you with an advantage Back in the black private equity fund Vertex Cap- ital, where Mr. Nusbaum is manag- ing director, brought Ronco out of bankruptcy for $5 million in August 2007.He revived the use of infomer- ACCOUNTING, TAX & CONSULTING cials and Mr. Popeil’s image. Ronco had sales of $40 million last year but Together with MHM, one of the Top Ten was at least back in the black. Central to Mr. Nusbaum’s turn- accounting providers in the nation around strategy is outsourcing every- thing from media-buying to ware- housing.That approach freed him to move the company to New York, which the Philadelphia native had adopted more than 20 years earlier when he came here to start his adver- tising career. CBIZ Mahoney Cohen Relocating to the Big Apple was a shrewd step for Ronco,says Rachel Weingarten, president of Octagon Strategy Group in New York. Small MHM Mahoney Cohen CPAs The New York Practice of firms can staff up with world-class Mayer Hoffman McCann P.C. An Independent CPA Firm To sign up for Crain’s new ӣӰǙä°xÇääÊUÊwww.cbizmahoneycohen.com twice-weekly SMALL BUSINESS

NEWSLETTER, go to Inc. NYSE Listed: CBZ. All rights reserved. 2009. CBIZ, © Copyright www.crainsnewyork.com/smallbiz

March 16, 2009 | Crain’s New York Business | 17 CNYB 03-16-09 A 18 3/12/2009 8:52 PM Page 1

THE WEEKS AHEAD

THIS WEEK’S EVENTS MARCH 18 development plans in New York City MARCH 18 [email protected]. MARCH 17 Workshop in Business Opportunities under the current economic conditions. NYC Business Solutions holds session Camba holds workshop on how to buy a holds free small-business accounting 6 p.m. to 8 p.m., UBS, 1285 Sixth Ave. on business plans and marketing plans. MARCH 23-29 home. 6 p.m. to 8:30 p.m., 884 Flatbush clinic. 5:30 p.m. to 8 p.m., 55 Exchange Fee: Free for members, $30 students, 5:30 p.m. to 8:30 p.m., 110 William St., MARCH 23 Ave., second floor, Brooklyn. Free. Place, fifth floor. Free. (212) 684-0854, $85 nonmembers. (646) 263-7658. fourth floor conference room. Free. Fordham Institute for Family and Preregistration required. ext. 0538, or [email protected]. MARCH 18 [email protected]. Private Enterprise holds seminar on how (718) 282-2500. MARCH 18 City Standard Data holds networking MARCH 19 to handle the credit markets and other MARCH 17 Jones Lang LaSalle and R.Y. session for real estate professionals. 5:30 GreenPearl.com holds Manhattan real issues impacting businesses. 5:30 p.m. to Fashion Institute of Technology holds Management Co. host the Greater NY p.m. to 9 p.m., 66 Charlton St. Free. estate industry mixer. 6 p.m. to 10 p.m., 8 p.m., UBS, 1285 Sixth Ave., 14th seminar for freelancers on marketing Chapter of the Institute of Real Estate (212) 229-1424. 230 Fifth Ave. Fee: Free for members, floor. Free. (917) 842-4473 or your services. 6 p.m. to 9 p.m., 27th St. Management’s second annual asset- and MARCH 18 $20 nonmembers. (646) 732-7760 or [email protected]. and Seventh Ave. Fee: $35. property-management symposium. 8 Downtown Women’s Club holds [email protected]. MARCH 24 Preregistration required. (212) 217-7250 a.m. to 6 p.m., New York Helmsley seminar on low-cost marketing MARCH 20 New York Public Library holds or [email protected]. Hotel, 212 E. 42nd St., third floor. Fee: techniques using Google and e-mail. Local Development Corporation of workshop on theater techniques to help $149 members, $199 nonmembers. 6 p.m. to 8 p.m., Downtown Atlantic East New York holds conference on you persuade and inspire your business More meetings online at (212) 944-9445 or [email protected]. Restaurant, 364 Atlantic Ave., marketing and sales strategies to succeed listeners. 5:30 p.m. to 7 p.m., Science, www.crainsnewyork.com MARCH 18 Brooklyn. Fee: $15 members, $20 in a lean economy. 8 a.m. to 4 p.m., Industry and Business Library, 188 Click on “Events” New York Commercial Real Estate nonmembers. (718) 859-0229 or St. Francis College, 180 Remsen St. Madison Ave., room 018. Free. Women’s Network holds seminar on [email protected]. Fee: $50. (718) 385-6700 or (212) 592-7000. MARCH 25 Financial Women’s Association holds lecture on corporate social responsibility. 5:30 p.m. to 8:30 p.m., McGraw-Hill Cos., 1221 Sixth Ave., 50th floor. Fee: Free for McGraw-Hill employees, $35 members, $45 nonmembers. Preregistration required by March 23. (212) 205-2825. MARCH 25 ® Brazilian-American Chamber of Now buy ANY BlackBerry, Commerce holds breakfast on Brazilian investment in the U.S. 8 a.m. to 11 a.m., Dewey & LeBoeuf, 1301 Sixth Ave. Fee: $50 members, $100 nonmembers. get another one FREE! (212) 751-4691. MARCH 25 Five O’Clock Club holds seminar on Let our Small Business Specialists show you how you can do more with email and save. getting interviews. 6:30 p.m. to 8:30 p.m., 11 Penn Plaza, fifth floor. Fee: $50. A BlackBerry Smartphone lets you get more done on the go; stay on top of your email, open attachments, (914) 788-5482 or [email protected]. MARCH 26 edit files and more. Get the productivity of a BlackBerry on America’s Largest and Most Reliable 3G Network. New York Society of Security Analysts And now, for every BlackBerry you buy, get another one free. holds seminar on the investment process with keynote speaker David Darst, Free BlackBerry Smartphone of equal or lesser value. New 2-yr. activation on voice plan with email feature, or email plan req’d per phone. managing director at Morgan Stanley. 5:30 p.m. to 8:30 p.m., 1177 Sixth Ave., second floor. Fee: $75 members, $115 nonmembers. (212) 541-4530 or [email protected]. MARCH 30-APRIL 5 MARCH 31 American Friends of Tel Aviv University holds breakfast on symbiotic investing. 8:30 a.m. to 10 a.m., Proskauer Rose, 1585 Broadway, 27th floor. Fee: $36. Preregistration required. (212) 742-9059 or [email protected]. APRIL 2 Asian Women in Business holds seminar on mastering the art of public speaking and presentation. 6 p.m. to 9 p.m., ING, 230 Park Ave., conference rooms A & B. Fee: $20 members, $45 nonmembers. (212) 868-1368. APRIL 6-12 APRIL 7, 14, 21 TM TM TM BlackBerry 8830 BlackBerry Curve BlackBerry Storm BlackBerry Pearl Amalgamated Bank holds seminar on World Edition The Smartphone that The world’s first touch Sleek inbox that works personal financial basics. 6:30 p.m. to International traveler knows how to have fun screen global BlackBerry where you do 8:30 p.m., Bedford-Stuyvesant that’s all business Restoration Plaza, 1368 Fulton St. Free. $ 99 $ 99 $ 99 $ 99 (718) 636-6924. 99 99 199 19 APRIL 9 $169.99 2-yr. price – $70 $169.99 2-yr. price – $70 $199.99 2-yr. price. $119.99 2-yr. price – $100 Small Business Administration Business mail-in rebate debit card. mail-in rebate debit card. mail-in rebate debit card. Development Division holds workshop on winning government contracts with Get the right tools for your small business. Contact a Small Business Specialist today. effective proposals. 9:30 a.m. to 2 p.m., 26 Federal Plaza, sixth-floor conference room H. Free. (212) 264-4322 or [email protected]. Call 1.800.VZW.4BIZ Click verizonwireless.com/smallbusiness Visit a Verizon Wireless storestore —maia blume VERIZON WIRELESS COMMUNICATIONS STORES See store for Return/Exchange Policy. TO LIST YOUR EVENT BRONX NEW! 2150 White Plains Rd. 718-829-3179 NASSAU Massapequa 5070 Sunrise Hwy. 516-797-3880 BUSINESSBUSINESS CUSCUSTOMERSTOMERSRS NEW! 416 Westchester Ave. 718-292-4111 Westbury 49 Old Country Rd. 516-937-2960 HABLAMOSHAH BLAMOS Crain’s lists business meetings online and includes MANHATTAN 342 Madison Ave. @ 43rd St. 212-856-6100 SUFFOLK East Northport 4000 Jericho Tpke. 631-499-1820 1-800-899-42491-800-899-4249 ESPAÑOLESPAÑÑOL them in the print edition on a space-available basis. Union Square 859 Broadway 212-206-7587 Smith Haven 1 Smith Haven Mall 631-382-3720 Events in New York City with admission fees of less 57 W. 57th St. btwn. 5th & 6th Ave. 212-980-4860 WESTCHESTER Hartsdale 355 N. 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18 | Crain’s New York Business | March 16, 2009 CNYB 03-16-09 A 19 3/12/2009 2:59 PM Page 1

REAL ESTATE INSIDE Small spaces get landlords’ attention as big deals wither PAGE 22 “It’s like a traditional sales cycle on steroids.” —Isaac Glasman, Gramercy Auctions Group, Page 20

Auctions on the rise as sales tool Putting properties on block stirs up stagnant market; win-win situations

BY KERRY MURTHA

a two-column ad in The Wall Street Journal in November got straight to the point. In big, bold type,it read,“Exceptional value … vacant multifamily high-rise … subject to minimum bid of $4.25 million.” The property, which had lan- guished on the market for months,was sold six weeks later to the highest bidder at an auction held at the New York Marriott in downtown Manhattan. Chalk up another victory for Gramercy Auctions Group,one of a handful of area real estate auc- BARBARIANS AT THE GATE: A soaring interest rate on Kelvin Crenshaw’s loan helped push the family home toward foreclosure. buck ennis landov DOING BUYERS’ BIDDING: Auction sales of real estate reached $32.6 billion in 2008. Growing foreclosures tioneers that are seeing demand for their services soar. Once written off by sellers as setups for lowballing, property auctions have earned growing re- hit home in NYC spect in the current economic en- vironment as a means of breaking the ice in frozen markets. Auc- tions offer sellers opportunities to Buyers across city struggle to find ways to hold on to their houses turn illiquid assets into cash, and they offer bidders chances for pos- and East New York and Flatbush in Brooklyn. BY DANIEL MASSEY sible bargains. HOUSING CRASH “It’s the biggest threat to our communities Just last week, more than 375 foreclosed homes in New York, WHILE FORECLOSURES BEGAN SOARING two or three since the crack epidemic,” says Carol Finegan, New Jersey and Pennsylvania— years ago in markets like Nevada, Florida and director of administration at Brooklyn Housing going for a discount of as much as California, the crisis in New York City hit far & Family Services. 50% off their original purchase prices—were put up for auction at more recently. And it is far more narrowly In the hardest-hit areas,many first-time home the Javits Convention Center by focused. buyers were sold adjustable-rate mortgages, USHomeAuction.com, a firm Damage to date has rocked pockets of the city 3 FAMILIES’ BANK ASSISTANCE often with low introductory teaser rates that STORIES Flexible Lenders’ moves do that put more than 30,000 prop- where predatory lending was most prevalent, made them attractive and affordable—for a erties on the block in 2008. rates, vanishing little to help; shaking the foundation of neighborhoods like brokers wreak Obama plan offers while.Others got “piggyback loans”that required The process for such sales is havoc Page 24 faint hope Page 25

See AUCTIONS on Page 20 Jamaica and St. Albans in southeast Queens, istockphoto See FORECLOSURES on Page 24

March 16, 2009 | Crain’s New York Business | 19 CNYB 03-16-09 A 20 3/12/2009 2:55 PM Page 1

REPORT REAL ESTATE A QUICK SPIN AROUND THE BLOCK IN RESPONSE TO THE GROWING DEMAND for real estate auctions, the National Association of Realtors partnered with the National Auctioneers Association Auctions on the rise as sales tool to develop an online course designed to introduce brokers to the process. “Real estate brokers are looking to add auctioneering to their business repertoire,” says a spokesperson for the NAA. Continued from Page 19 Grosinger. “We average a 65-day sociation. The Kansas-based group Some 300 real estate agents have taken the one-day, six-hour class since simple. Bidders gather at the prop- turnaround for our properties, from represents 5,000 auctioneering its inception in September. erty to be auctioned or, if multiple marketing to closing.” firms—including 225 in New York Century 21 Grand, a residential brokerage operating in New York’s properties are on the block,in an au- state—out of 22,000 in the country. ditorium or other public venue.The Fast-growing format Auction sales of residential, northern suburbs, set up an auction division in January 2008, training 60 of highest bidder signs a binding con- long island city, Queens-based commercial and industrial real es- its 130 agents to prepare properties for auction. “We realized that the market tract and makes a 5% down payment Gramercy auctioned off an average tate totaled $32.6 billion last year,up climate is changing and we needed to offer additional services that would the same day. of nearly 100 properties a month in 5.3% from 2007 levels, according to help us accelerate sales,” says Jeff Stern, a partner at Century 21 Grand. “It’s like a traditional sales cycle 2008, and it expects the figure to NAA figures. Even more impres- The firm has held three auctions, selling properties at prices ranging from on steroids,” says Isaac Glasman, triple this year.Nationwide,auctions sive,the dollar volume rose despite a $200,000 to $1 million, with six properties scheduled for auction next who left a career as a real estate bro- are one of the fastest-growing sec- steep drop in property sales overall. month. Mr. Stern says he expects to sell 75 homes through auctions by 2009. ker to co-found Gramercy Auctions tors of the real estate market,accord- The association predicts that by in 2007 with partner Shaya ing to the National Auctioneers As- next year, auctions will account for 30% of all real estate purchases. Increasingly, auctioneers are be- ing called in by lenders eager to shed foreclosed properties, developers looking to expedite sluggish sales Retail Space Available at the Center of it All and homeowners hoping to sell and move on. The sellers pay the up- front advertising costs, while the buyers pay the auctioneers fees that typically range from 6% to 10% of the agreed purchase price. Richard Maltz, vice president of David R. Maltz & Co., a Plainview, L.I.-based auction company, re- ports that the number of calls from develop- ers, builders and home owners tripled last year. Sales grew to $100 million, from $85 million in 2007, with re-

istockphoto cently auc- tioned properties ranging from a two-bedroom Upper East Side condominium that sold for $1.3 million to a blocklong commercial parcel in the Bronx that fetched $11 million. Industry observers forecast a steep rise in overall demand for auc- tioneers. This is based in part on what happened in states such as Florida and California, where the decline in real estate started well be- fore it hit New York and where auc- tions have become commonplace. A horse of a different color? some brokers insist that Manhat- 620 Fifth Avenue in Rockefeller Center tan isn’t like those other markets. “I don’t think Manhattan lends Premier Retail Space Available. itself to auctioning,” says Frank Liantonio, head of the U.S. transac- Prominent corner location in the Channel Gardens overlooking tion services group at Cushman & the iconic Rockefeller Center ice-skating rink Wakefield Inc. “You have signifi- cant properties here, and I think Highly tra icked with over 300,000 visitors daily you’ll lose the more sophisticated Neighboring tenants include Coach, Sunglass Hut, Movado, buyers and sellers who are inclined to go the conventional sales route.” Banana Republic and Anthropologie John DiFiore, a senior vice pres- 3,734 USF with 185 feet of frontage on three sides ident of Manhattan-based invest- ment firm Real Estate Capital Part- Ceiling heights ranging from 14 to 16 feet ners, disagrees. He says he has recommended auctions for multi- Possession Q1 2010 million-dollar properties that weren’t selling in other cities. for more information, direct all inquiries to: “It doesn’t matter if you’re selling Natalia Macias 212.593.9407 [email protected] a property for $150,000 or $1 mil- Sunny Choi 212.588.8629 [email protected] lion; if transactions have slowed be- cause buyers and sellers can’t find a middle ground, auctions are a great way to break the logjam,” says Mr. DiFiore.“At auction, sellers can de- termine where the market value re- ally is. Once that happens, you can reprice units going forward.”

20 | Crain’s New York Business | March 16, 2009 CN012797 3/10/09 7:27 PM Page 1 We’re Building a Greener New York

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REPORT REAL ESTATE

floors and try to bring “Because of the in small tenants,” says renovations, we have Landlords go with flow, Paul Amrich, executive been able to reach vice president of CB high-quality ten- Richard Ellis. ants,” says Fred Pos- The relative strength niak, a senior vice focus on smaller spaces of the market for small- president at W&H. er spaces is good news Adams & Co. also for W&H Properties, owns many proper- users—including ecutive vice president which owns nine build- ties with small floor Owners subdivide AIG, Lehman and at Cushman & Wake- ings in Manhattan, in- plates not suitable for floors as big deals Bear Stearns—hav- field Inc., points to a cluding the Empire large tenants, and it, ing gone to the wall, growing oversupply State Building.Most of too, is taking advan- dwindle, large and others deep in of spaces larger than its portfolio consists of tage of current mar- retrenchment mode, 100,000 square feet, prewar buildings, many ket conditions. blocks glut market CENTRAL LOCATION: Apparel landlords are lavish- for which there are of which have smaller maker Central Mills leased space Though the company ing more attention few takers. While a floor plates. at W&H’s 1400 Broadway. boasts tenants occu- BY STAN LUXENBERG on smaller tenants. number of transac- Despite the melt- pying as much as tions for large spaces down in the financial 120,000 square feet,it in a single month late last year, Whatever they can get did close in the markets, W&H was able to sign 43 focuses on those needing less than Adams & Co. signed on a flurry of “in the past,some fourth quarter of last leases for a total of 200,000 square 4,000 square feet. new tenants at 110 W. 40th St. landlords preferred year, Mr. Zeller notes feet during the third quarter. To attract these small occupants, Among them were literary agency dealing with a few that it typically takes Among the new tenants were ap- Adams & Co. markets many of its Books Crossing Borders, which large tenants,” says 10 months to close parel maker Central Mills, which holdings to specific industries. Its took 426 square feet, and uniform Raymond Sanseveri- big deals, meaning leased 17,000 square feet at 1400 property at 1071 Sixth Ave., for ex- maker Milton’s of New York, which no, chairman of the GOOD AND SMALL: Tenants recently that most of those Broadway, and ML Management ample,is pitched primarily to appar- took spaces of 1,000 square feet or leased 1,058 square feet. New York real estate less at Adams & Co.’s 110 W. 40th. started in the first Associates, a business manager for el makers, while 10 W. 33rd is billed “Times may be difficult, but department at law quarter of 2008. entertainment-industry clients, as a home for makers of handbags there are still good small tenants firm Loeb & Loeb. “Going forward, which leased 9,200 square feet at and other accessories. that need convenient locations,” “But now they are taking whatever we will not see many large deals,” he 250 W. 57th St. “In times like these,it is more im- says David Levy,principal of Adams they can get.” observes. portant than ever for tenants to be in & Co., the owner of that building In a real estate market that has In the face of the expected Appealing modernizations a specialized location,”says Mr.Levy, and 26 others in Manhattan. been deathly quiet ever since Sep- drought, many landlords are radi- w&h’s effort has been helped by an who explains that some niche build- Until recently, most landlords tember, many brokers say that the cally altering their strategies. ongoing $1.5 billion modernization ings become magnets for out-of- competed vigorously to attract ten- deals getting done are small—typi- “A lot of owners are saying that of the company’s properties, adding town buyers from big retailers such ants that would take big blocks of cally less than 25,000 square feet. since there are no large fish out everything from wiring and ventila- as Wal-Mart.“That’s why our acces- space. But with several huge space In contrast, Barry Zeller, an ex- there, maybe they should divide big tion to new lobbies and elevators. sory building is 99% occupied.”

22 | Crain’s New York Business | March 16, 2009 CNYB 03-16-09 A 23 3/12/2009 4:33 PM Page 1

REPORT REAL ESTATE Deals executive-suite space at 230 Park Ave. Big tenant renews—for short term The firm has signed a five-year lease for 3,500 square feet on the 25th floor of 1040 Sixth Ave., at West broker who represented the Open block with an awful lot of cachet and 39th Street. Archway plans to move Management firm Center in the 11-year midtown lease. an awful lot of food businesses,so [Z into its new offices in about two Elliott Associates The 25-year-old center plans to Pizza] has many people to feed,”says weeks. The asking rent for the pre- move into its new home by June. Steve Rappaport,the senior director built space was $60 per square foot. re-signs at 712 Fifth “The high ceilings, column-free at Sinvin Realty who represented “It’s a growth company,”says Bob space and new construction were the landlord in the transaction. Stella of CresaPartners, who repre- inancial management appealing,” says Walter Beebe, head Dino Mattessich, a vice presi- sented the tenant with colleague firm Elliott Associates re- of the Open Center. dent of Jones Lang LaSalle, negoti- Justin Halpern. “Archway liked the newed its 40,000-square- The landlord was represented by ated on behalf of Z Pizza. high-end finishes,and the location is foot lease at 712 Fifth Ave. Robert Tanzmann of Cushman & —adrianne pasquarelli convenient to its clients in midtown.” for another two years. Wakefield Inc. Archway plans to triple its head FSources say the rent was about —amanda fung count in three years, he adds. The $85 a square foot. Elliott occupies Departure for Park firm currently has four employees. the entire 34th,35th and 36th floors is no suite sorrow Matt Leon, William Cohen and as well as parts of the 20th and 28th Pizza maker brings Ryan Kass of Newmark Knight Frank floors at the building,between West crust cross-country archway technology partners, represented landlord 1040 Avenue 55th and West 56th streets. a financial services software firm,has of the Americas LLC in the deal. Newmark Knight Frank repre- RE-CENTERING ITSELF: The Open Center, a burritos are out and avocado graduated from its tiny short-term —amanda fung sented Elliott. Mark Lauzon and holistic learning facility, is moving to 22 E. 30th. pizza is in at 298 Bleecker St. Louis D’Avanzo, brokers at Cush- California chain Z Pizza recent- man & Wakefield Inc., represented ly signed a 10-year lease for 1,000 the landlord,Paramount Group Inc. the land from the Church of the square feet on the ground floor, a

—theresa agovino Transfiguration.As part of that deal, 600-square-foot basement and a Clarett built a four-story condo for 500-square-foot garden at the prop- the church. In the end, the church erty, at Barrow Street and Seventh Open Center takes decided to use only a portion of the Avenue South. The asking rent for Your Own class act to E. 30th ground floor and the entire fourth the ground floor,formerly home to a floor and to rent out the rest, at an Burritoville, was $180 a square foot. Identity. the new york open center,a ho- asking rent of $55 per square foot. The new eatery, set to open by 499 listic learning center, signed a lease The Open Center, which saw at- June,will be Z Pizza’s first foray into for 15,300 square feet at 22 E. 30th St., tendance at its classes and workshops the Northeast. The chain, which th Avenue Your Own between Fifth and Madison avenues. increase 20% last year,had outgrown specializes in healthful pizzas, has 7 at 37th Street The nonprofit will occupy a portion its 8,500-square-foot condo at 83 70 West Coast locations; it plans to Floor. of the ground floor and the entire Spring St. Executives spent 14 open a total of 10 Manhattan spots second and third floors of the 55-sto- months seeking larger quarters. over the next five years. ry Sky House residential complex. “They tried to purchase some- Z Pizza’s location should help it ■ Floors ranging The building was developed by thing new,but it was too expensive,” gain walk-in customers. from 3,200 - 4,800 rsf The Clarett Group, which bought says Brian Weld, the Colliers ABR “Bleecker Street in that area is a ■ 24/7 building access

®

100% COMMISSIONS PAID ON SIGNING

FOR LEASING INFORMATION, CONTACT: CAROL SACKS [email protected] 212.452.6055 BRIAN NEUGEBOREN [email protected] 212.452.6046

LEASING & MANAGEMENT Savittpartners.com

March 16, 2009 | Crain’s New York Business | 23 CNYB 03-16-09 A 24 3/12/2009 4:34 PM Page 1

REPORT REAL ESTATE

Foreclosures hit home in NYC Springfield Gardens, Queens WORKING 2 JOBS, STILL FALLING SHORT Continued from Page 19 DOWN AND OUT IN NYC no money down,but saddled borrow- THE QUESTION PRINTED on a fluorescent pink sign attached to a lamppost caught Denise Parker’s attention: “Why rent when you can own?” Neighborhoods most affected by foreclosure filings, 2004 through 2008. ers with second,high-interest mort- gages. And in some cases, home- In 2005, the single mother of three dialed the number on the sign and 2004 2005 2006 2007 20081 owners seized on offers to refinance reached a real estate agent. He told her that for the $1,600 a month she was Flatbush, Brooklyn 440457 526 778 713 their homes that were too alluring to then paying in rent, she could own a home. He sold her a two-family house for Bedford-Stuyvesant, Brooklyn 374 371 541 744 627 turn down. $560,000, noting that she could rent out one of the units. Rochdale, Queens 324 359 498 778 722 “It’s a fact that homeowners were The same agent even made all the arrangements for a piggyback East New York, Brooklyn 271 282 402 682 670 push-marketed unsustainable loans,” mortgage from Lend America. One loan, which accounted for 80% of the Jamaica, Queens 270278 379 589 543 says Josh Zinner, co-director of the total, was an interest-only mortgage with a 7.25% teaser rate. The other was Canarsie, Brooklyn 230233 315 423 455 Neighborhood Economic Devel- fixed at 9.25%. opment Advocacy Project. Ms. Parker says her broker told her not to worry about the adjustable South Ozone Park, Queens 139 437 188 333 317 The result: By the end of last mortgage, because she’d be able to refinance before the rate went up. Initial Brooklyn 141 152 216 381 375 Bushwick, year, 10.2% of mortgages in New payments on the loans totaled about $3,700 a month. St. Albans, Queens 200 200 251 360 359 York state, or nearly 210,000, were For two years, the 42-year-old housekeeper worked full-time at two Queens Village, Queens 167 166 217 319 323 delinquent or in foreclosure. The midtown Manhattan hotels so she could pay her mortgage. She took in Ocean Hill, Brooklyn 134 167 207 302 249 Obama administration’s housing $1,600 in rent from a tenant, which helped. But in May 2007, the interest rate Filings are for one- to four-family properties. Areas are ranked by the percentage of filings they represented in their respective rescue plan could help 4 million boroughs over the five-year period. 1-Decreases in 2008 are due to a new state law that froze filings in the fourth quarter. on the larger loan began rising, eventually soaring above 10%. Ms. Parker’s Source: Neighborhood Economic Development Advocacy Project analysis of Profiles Publications data homeowners nationwide, but it’s monthly payments now total $5,050—nearly 80% of her earnings. too early to tell what impact it will She tried to get her loan terms modified. have in the city. Following are three “The bank wouldn’t budge,” she says. stories of New York families who
In frustration, she hired a loan modification company, but got nowhere. could get a boost. Meanwhile, Ms. Parker continued to work two jobs, sacrificing time with her children to try to keep up with her payments, and holding expenses to a minimum. East NY, Brooklyn “They eat a lot of oatmeal,” she says. Chelsea/ A year ago, Ms. Parker hit bottom. Aurora Loan Services, a subsidiary of ‘IT WILL KILL US’ Lehman Brothers Bank that had bought her mortgage, sent her a foreclosure West DONALD FOY is losing sleep. “I’m notice. Her home was scheduled for auction on Feb. 20 of this year. A week 11 Flatiron up most nights, just walking before the sale, Aurora finally relented, telling her it would work on a th Street around,” he says. “I’m worried modification; it would not comment on the case. 19 Gem about what’s going to happen.” For now, Ms. Parker is hanging on. The source of his unrest: Mortgage payments due on his two-family row house have shot Full floor available - 26,000 rsf Expansion opportunity up during the past three years to $4,800 a month St. Albans, Queens New lobby and elevators Generous workletter . “If I paid what they wanted, I DISASTROUS TURN FOR STEAL OF A DEAL 24/7 building access with concierge Steps off 5th Ave. wouldn’t be eating,” he says. Tenant roster includes Time Warner, Nautica, Mr. Foy’s problems began in KELVIN CRENSHAW seemed to December 2005 when he have everything going for him. Universal Music Group, Epsilon Interactive and Tory Burch refinanced the mortgage on the Nearly four years ago, the 47- Building Entrances on both 19th & 20th Streets house that he bought in 1995 for year-old and his wife bought a $169,000. The house needed two-story attached house that major renovations due to shoddy had been in her family for years. construction and vandalism. The price was a mere $40,000. Mr. Foy, 56, was initially able The Crenshaws refinanced the to make the monthly payments property to pay for renovations. on the $432,000 loan he took Enticed by a direct-mail flier, they out with Wells Fargo. But in quickly refinanced a second time,

February 2007, the rate adjusted raising a total of $225,000 from buck ennis upward. Then Mr. Foy became Ameriquest in 2005. “They told us TWO-STORY TRAUMA: The Crenshaws’ street. disabled and was forced to end they’d get us a rate with a monthly his 17-year tenure as a bus driver payment in the hundreds or just a little above,” Mr. Crenshaw says. for the MTA. The first sign of problems came soon after. “We called the [mortgage] In desperation, he asked broker with a question, and the number was disconnected,” Mr. Crenshaw Wells Fargo to modify his loan. “I says. “They were gone.” called them many times,” he says. Next, the interest rate began ratcheting up, pushing the Crenshaws’ monthly “They would not bend.” Wells payments to $4,500—more than four times the $925 they paid initially. Fargo declined to comment. At the same time, Mr. Crenshaw, a husky former semipro first baseman, To stave off foreclosure, Mr. Foy ruptured his kneecap. It ended up in his thigh, and Mr. Crenshaw ended up in paid more than $5,000 to a com- surgery. He was unable to continue working as a facility manager at Pitney pany that guaranteed it would get Bowes, and his wife’s salary was not enough to fill the gap. his loan modified, but failed to do “Had I known more about the mortgage, I never would have done it,” Mr. 100% COMMISSIONS so. In July, Mr. Foy got a foreclosure Crenshaw says. “But they said all the right things, and I’m no real estate expert.” PAID ON SIGNING notice. He is suing the company Soon, the Crenshaws’ home went into foreclosure. he hired and is still hoping that a “Every day you wake up, the sun is out, the birds are chirping,” he says. modification can be worked out. “But suddenly you realize: ‘My life sucks; I could lose my home.’ ” FOR LEASING INFORMATION, CONTACT: “If the bank would just bend a Then Mr. Crenshaw’s luck changed. He learned that the mortgage had CAROL SACKS [email protected] 212.452.6055 little and lower the interest rate and been sold illegally just before his home was to be put up for auction. A Queens MICHAEL DUBIN [email protected] 212.452.6042 extend the terms, we could start judge then tossed out the case and told the family to stay put. Mr. Crenshaw, a things moving again,” he says. devout Christian, ascribes their good fortune to “divine intervention.” 11west19thstreet.com Meanwhile, he is getting very Over the past year, they haven’t made any payments. Mr. Crenshaw says little sleep as he and his wife, he doesn’t even know to whom he would make out a check at this point. Catherine Burch, await an April Housing counselors at Acorn are trying to hammer out new terms with Aurora LEASING & MANAGEMENT court date. “My wife keeps Loan Services, which declined to comment. asking, ‘What are they going to Mr. Crenshaw is working on a B.A. in communications and hoping to get Savittpartners.com do?’ ” he says. “If they kick us a modification like the ones discussed in the Obama housing plan. “You don’t out, it will kill us.” just give people loans they can’t possibly repay and ruin their lives,” he says.

24 | Crain’s New York Business | March 16, 2009 CNYB 03-16-09 A 25 3/12/2009 2:57 PM Page 1

REPORT Banks’ efforts on mortgage relief fall flat

opening regional loan centers this Obama bailout offers month. new hope, but process Two centers in the New York area are slated to open by the end of remains laborious March. Citigroup has established a BY HILARY POTKEWITZ homeowner assistance program on its Web site that’s aimed at provid- a series of ambitious efforts ing customers with a road map for launched by banks over the past six revising loans. months to stem a rising tide of fore- Several smaller banks, including closures have accomplished little. Astoria Federal Savings Bank, Sov- That is clear from foreclosure rates, ereign Bank and Emigrant,declined which in January were up to comment on their ef- 64% from December and forts. 5% from a year earlier, ac- HOUSING The refinancing process cording to a report from CRASH generally moves too slowly PropertyShark.com. for troubled borrowers.Just “Sure, financial institu- getting an answer on tions have been announcing whether a modification plans for more-flexible loan proposal has been received modifications,but the expe- has been taking three to six rience on the ground throughout months, according to NEDAP. [New York] state is much the same Payments accrue and property as it’s been in the past,” says Josh values decline during that waiting Zinner, co-director of the Neigh- period, which further erodes bor- borhood Economic Development rowers’ financial capabilities. Advocacy Project. An estimated 20% of homeown- The hope is that President ers are “underwater,” that is, their Barack Obama’s $275 billion hous- mortgages exceed the value of their ing bailout will begin to change the homes,according to Moody’s Econ- situation, but even the president omy.com. concedes that his plan won’t rescue everyone. Proceed with caution Mr. Obama’s proposal provides such disturbing figures have lenders with a financial incentive to spurred many lenders to proceed alter terms, and it delivers the threat cautiously, and whether the assis- that a bankruptcy court judge might tance effort can be accelerated re- revise a loan if the bank isn’t willing mains to be seen. to.But relief for homeown- ers will probably be neither easy nor quick. Up to this point, the successes achieved in pre- venting foreclosures have mostly been the work of a few persistent homeown- Blank Rome is pleased to announce ers. Those borrowers have taken it upon themselves to Carol M. Joseph and Deborah A. Franzblau contact servicing agents in the effort to work out revi- have joined the Firm as Partners in the Real Estate Lending Group.

sions in their loan terms. buck ennis Though the city’s three CHASE’S town hall meetings last year were poorly attended Together they bring more than 40 years of experience largest lenders, Citigroup, J.P. Morgan Chase and in the Real Estate and Financial Services industries. Bank of America,have announced a “We’re happy to talk to you, and moratorium on foreclosures, the it is important that we re-under- onus remains primarily on threat- write the loan,” says a Chase Carol M. Joseph Deborah A. Franzblau ened homeowners to press their spokesman. 212.885.5158 212.885.5526 case. But, he adds, “we just need to [email protected] [email protected] make sure that you’re not trying to More assistance get a lower rate because you’d like chase held 13 town hall-style out- one. And on top of that, we need to reach events around the city last get you a rate you can afford.” year,but a total of just 154 customers In February,Mr.Obama allocat- attended. ed $75 billion for foreclosure pre- www.BlankRome.com “We’re trying to help as many vention, in addition to $200 billion families as possible stay in their designated for Fannie Mae and homes,” a Chase spokesman says. Freddie Mac. The Chrysler Building Nationwide, the company The package lays out a number of 405 Lexington Avenue helped 330,000 homeowners avert guidelines and restrictions for New York, NY 10174 foreclosure last year;it expects to aid bankers. For instance, newly adjust- another 400,000 this year. To help ed loan payments cannot exceed California Delaware Florida Hong Kong New Jersey New York Ohio Pennsylvania Washington, DC achieve that goal, the bank began 31% of a homeowner’s income.

March 16, 2009 | Crain’s New York Business | 25 nb11p26-27cls.qxp 3/12/09 4:02 PM Page 26

COUNTRY CLUB MEMBERSHIP PUBLIC & LEGAL NOTICES

REQUEST FOR PROPOSALS Notice of Qualification of BRC SPV I, Notice of Qualification of FSI NY Notice of Qualification of FGDI, L.L.C. Colonia Country Club LP. Authority filed with Secy. of State 1540 LLC. Authority filed with Secy. of Authority filed with NY Dept. of State Executive Membership of NY (SSNY) on 2/12/09. Office State of NY (SSNY) on 01/15/09. on 1/21/09. Office location: NY County. Now Available location: NY County. LP formed in Office location: New York County. LLC Princ. bus. addr.: 19901 N Dixie Hwy., Delaware (DE) on 2/6/09. SSNY des- formed in Delaware (DE) on Bowling Green, OH 43402. LLC ignated as agent of LP upon whom 01/13/09. Principal office of LLC and formed in DE on 8/4/00. NY Sec. of process against it may be served. DE address is: c/o Fillmore Capital State designated as agent of LLC SSNY shall mail process to: Daniel Partners, Four Embarcadero Center, upon whom process against it may Beltzman, 1270 Broadway, Ste. 1009, Ste. 710, San Francisco, CA 94111. be served and shall mail process to: NY, NY 10001, also registered agent. SSNY designated as agent of LLC c/o CT Corporation System, 111 8th DE address of LP: 2711 Centerville upon whom process against it may Ave., NY, NY 10011, regd. agt. upon Rd., Ste. 400, Wilmington, DE 19808. be served. SSNY shall mail process whom process may be served. DE We are pleased to announce that a Name/address of genl. ptr. available to c/o Corporation Service Co., 80 addr. of LLC: The Corporation Trust limited number of Executive from SSNY. Cert. of LP filed with DE State St., Albany, NY 12207-2543. Co., 1209 Orange St., Wilmington, DE Memberships are available for the Secy. of State, Federal & Duke of Arts. of Org. filed with Harriet Smith 19801. Arts. of Org. filed with DE Sec. 2009 Golf Season. York Sts., Dover, DE 19901. Purpose: Windsor, 401 Federal St., Dover, DE of State, 401 Federal St., Dover, DE Priced at $2,000 per corporate any lawful activities. 19901. Purpose: Any lawful activity. 19901. Purpose: any lawful activity. account, allows up to 8 employees access for weekday golf plus full Notice of Formation of FEED THE Notice of Formation of GAGOSIAN NOTICE OF FORMATION OF LIMIT- clubhouse and dining privileges. DOG, LLC. Arts. of Org. filed with GALLERY OF LONDON LLC. Arts. of ED LIABILITY COMPANY. NAME: Contact Kevin Fiske, General Manager Secy. of State of NY (SSNY) on Org. filed with Secy. of State of NY JAPY RESTAURANT LLC. Articles of at 732-381-9500 ext. 12 for details or 02/24/09. Office location: NY County. (SSNY) on 11/8/99. Office location: NY Organization were filed with the on the web @www.ColoniaCC.net. SSNY designated as agent of LLC County. Principal office of LLC: 980 Secretary of State of New York “2008 Best Country Club in Central New Jersey” upon whom process against it may Madison Ave., NY, NY 10021.The lat- (SSNY) on 11/16/07. The latest date Home News Tribune be served. SSNY shall mail process est date on which the LLC may dis- of dissolution is 12/31/2075. Office to Corporation Service Co., 80 State solve is 12/31/25. SSNY designated location: New York County. SSNY has St., Albany, NY 12207-2543. as agent of LLC upon whom process been designated as agent of the LLC EXECUTIVE Purpose: Any lawful activity. against it may be served. SSNY shall upon whom process against it may be mail process to c/o Larry Gagosian, served. SSNY shall mail a copy of RECRUITER process to the LLC, 111 Avenue C, NOTICE OF FORMATION OF Jeffrey Notice of Formation of PRODIGY Gagosian Gallery, Inc. at the principal W. Varcadipane PLLC. Article of office of the LLC. As amended by Cert. New York, New York 10009. Purpose: CAPITAL GROUP, LLC. Arts. of Org. For any lawful purpose. POSITION AVAILABLE Organization filed with Secretary of filed with Secy. of State of NY (SSNY) of Amendment filed with SSNY on State of NY (SSNY) 12/01/08 Office on 02/25/09. Office location: NY 1/28/09, name changed to GAGOSIAN Mkt Research Analyst location NY County. SSNY designated County. Principal office of LLC: 72 GALLERY INTERNATIONAL LLC. Notice of Formation of NATO for Manhattan RE firm. as agent upon whom process may be Greene St., 2nd Fl., NY, NY 10012. Purpose: Any lawful activity. BROTHERS LLC. Arts. Of Org filed Analyze trends, comparable sales & appraisals. served. Address SSNY shall mail any SSNY designated as agent of LLC with Secy. Of State of NY (SSNY) on Research buyers/owners. Manage database. process is 500 W. 56 St., 821. NY, NY 9.10.08. Office location: NY County. upon whom process against it may be Notice of Formation of 349 W 53 F/T, M-F, BA in bus. admin/finance, 10019. Purpose of PLLC: engage in any served. SSNY shall mail process to SSNY designated as agent of LLC RE license +2yrs exp req’d. Fax resume to lawful act or activity. Principal Business Property, LLC, Art. of Org. filed Sec’y upon whom process against it shall the LLC at the address of its principal of State (SSNY) 12/10/08. Office Realty Marketing Assoc., Ltd location: 500 W. 56 St. NY, NY 10019. office. Purpose: Any lawful activity. be served. SSNY shall mail process: (646) 478-9640 location: NY County. SSNY designated Joseph Rokacz, Esq. 400 West End as agent of LLC upon whom process Ave, Suite 10C, NY, NY 10021. Notice of Formation of DRMBRE APT Notice of Formation of ImageKing against it may be served. SSNY shall Purpose: any lawful activity. PERSONALIZED 14D-12A, LLC. Arts. of Org. filed with Visuals LLC. Arts. of Org. filed with mail copy of process to c/o Daniel Secy. of State of NY (SSNY) on Secy. of State of NY (SSNY) on Stav, 349 W. 53rd St., NY, NY 10019. Notice of Formation of Last Voices MATCHMAKING 12/10/08. Office location: NY County. 2/13/09. Office location: NY County. Purpose: any lawful activities. (USA) LLC. Arts. of Org. filed with Principal office of LLC: 411 E. 53rd SSNY designated as agent of LLC Secy. of State of NY (SSNY) on St., Unit 6F, NY, NY 10022. SSNY upon whom process against it may Notice of Registration of BRONSTEIN 11/24/08. Office location: NY County. designated as agent of LLC upon be served. SSNY shall mail process VAN VEEN & SCHUCK, LLP, a SSNY designated as agent of LLC whom process against it may be to: 227 E. 45th St., NY, NY 10017. domestic LLP. Notice of Reg. filed upon whom process against it may served. SSNY shall mail process to Purpose: any lawful activity. with the SSNY on 02/19/09. Office be served. SSNY shall mail process Michael Berger, 62 Sumner Rd., location: NY County. SSNY has been to: c/o Frankfurt Kurnit Klein & Selz, Greenwich, CT 06831. Purpose: Any designated as agent upon whom NOTICE OF FORMATION of COREY P.C., 488 Madison Ave., 10th Fl., NY, lawful activity. process against the LLP may be DISTASIO, L.AC., PLLC. Articles of NY 10022, Attn: Jerrold B. Spiegel, served. SSNY shall mail a copy of Organization filed with the Secretary Esq. Purpose: any lawful activity. Notice of Formation of ODINARES, of State of NY (SSNY) on 02/20/09. process to: The LLP, 150 East 58th LLC. Arts. of Org. filed with Secy. of St., 21st Fl., NY, NY 10155. Purpose: Office location: NY County. SSNY has Notice of formation of Limited Liability State of NY (SSNY) on 03/03/09. To Practice The Profession Of Law. been designated as agent upon whom Company (LLC). Pamela Gale LLC. Office location: NY County. Principal process against it may be served. Articles of Organization with the office of LLC: 350 Fifth Ave., Ste. The Post Office address to which the Notice of Formation of 72nd STREET Secretary of State of New York (SSNY) 4400, NY, NY 10118. SSNY designat- SSNY shall mail a copy of any HOLDING LLC. Arts. of Org. filed with on 10/17/08. N.Y. Office location: NY ed as agent of LLC upon whom process against the PLLC served Secy. of State of NY (SSNY) on County. SSNY has been designated process against it may be served. upon him is C/O the PLLC, 217 E. 22 12/12/03. Office location: NY County. as an agent upon whom process SSNY shall mail process to the LLC Street, #32, NY, NY, 10010. Date of SSNY designated as agent of LLC against it may be served. The Post at the address of its principal office. Dissolution: No Specific Date. Purpose upon whom process against it may Office address to which the SSNY Purpose: Any lawful activity. of PLLC: Acupuncture. Street address be served. SSNY shall mail process shall mail a copy of any process REAL ESTATE of Principal Business location: 217 E. to the LLC, c/o Empire Mgmt., 347 against the LLC served upon her is ABURR LLC, a domestic Limited 22 Street, #32, NY, NY, 10010. Fifth Ave., 16th Fl., Ste. 1600, NY, NY C.O. the LLC. The principal address Liability Company (LLC) filed with the 10016. Purpose: Any lawful activity. of the LLC is 1 Central Park West, NY, COMMERCIAL/NEW JERSEY Sec of State of NY on 2-4-09. NY Notice of Formation of STRATEGIC NY 10023. Purpose character of LLC: Office location: NY County. SSNY is EXPERIENTIAL GROUP, LLC. Arts. Notice of Formation of 15 William to engage in any lawful act or activity. 25,000 Sq/ft designated as agent upon whom of Org. filed with Secy. of State of NY Street 34-E, LLC. Arts. of Org. filed process against the LLC may be (SSNY) on 02/18/09. Office location: with Secy. of State of N.Y. (SSNY) on Notice of Formation of RitaSue Avail. For Retail Lease served. SSNY shall mail a copy of NY County. Principal office of LLC: 2/18/09. Office location: NY County. Siegel Resources, LLC. Articles of any process against the LLC served 49 W. 27th St., 5th Fl., NY, NY 10001. SSNY designated as agent of LLC Organization filed with Secy. of State Elmora Ave. Elizabeth, NJ upon him/her to Adrienne Cannella, SSNY designated as agent of LLC upon whom process against it may be of NY (SSNY) on 3/11/09. Office 200 W. 57th St., Ste. 1304, NY, NY upon whom process against it may served. SSNY shall mail process to: c/o location: NY County. SSNY designated (718) 332-1111 Jon Chiaro 10019. General purposes be served. SSNY shall mail process Snitow Kanfer Holtzer & Millus, LLP, as agent of LLC upon whom process to Corporation Service Co., 80 State 575 Lexington Ave., 14th Fl., NY, NY against it may be served. SSNY shall Notice of Qualification of Union St., Albany, NY 12207-2543. 10022. Purpose: any lawful activity. mail process to the LLC, 17 West Avenue Advisors LLC. Authority filed Purpose: Any lawful activity. 54th St., 9B, New York, NY 10019. with Secy. of State of NY (SSNY) on Notice of Qualification of The Catalyst Purpose: any lawful act or activity. PUBLIC & LEGAL 1/16/09. Fictitious name in NY State: NOTICE OF FORMATION OF LIM- Credit Opportunity Fund, L.P. Union Avenue Advisors (GP) LLC. ITED LIABILITY COMPANY. NAME: Authority filed with NY Dept. of State Notice of Qualification of LionHedge NOTICES Office location: NY County. LLC WILLIAM STREET HOSPITALITY on 2/4/09. Office location: NY County. Paulson Recovery Fund, L.P., App. formed in Delaware (DE) on 1/12/09. LLC. Application for Authority was LP formed in DE on 6/10/03. NY Sec. for Auth. filed Sec’y of State (SSNY) NOTICE OF FORMATION of Study SSNY designated as agent of LLC filed with the Secretary of State of of State designated as agent of LP 1/15/09. Office location: NY County. LP Bright Tutors LLC. Arts. Of Org. filed upon whom process against it may New York (SSNY) on 12/11/08. The upon whom process against it may org. in DE 1/14/09. SSNY designated with Secretary Of State of N.Y. be served. SSNY shall mail process LLC was originally filed with the be served and shall mail process to as agent of LP upon whom process (SSNY) on 12/30/08. Office location: to princ. bus loc.: The LLC, 527 Secretary of State of Delaware on the principal business addr.: 767 against it may be served. SSNY shall New York County. SSNY designated Madison Ave., 6th Fl., NY, NY 10022, 11/19/08. Office location: New York Third Ave., 32nd Fl., NY, NY 10017. mail copy of process to c/o LionHedge as agent of LLC upon whom process Attn: Thomas Grossman. DE address County. SSNY has been designated DE addr. of LP: c/o Incorporating LLC, 405 Park Ave., Ste. 803, NY, NY against it may be served. SSNY shall of LLC: c/o United Corporate as agent of the LLC upon whom Services Ltd., 3500 S. DuPont Hwy., 10022. DE office addr.: CSC, 2711 mail process to principal business Services, Inc., 874 Walker Rd., Ste. process against it may be served. Dover, DE 19901. Name/addr. of Centerville Rd., Wilmington, DE location: Study Bright Tutors c/o Bruce C, Dover, DE 19904. Cert. of Form. SSNY shall mail a copy of process genl. ptr. available from NY Sec. of 19808. Cert. of LP on file: SSDE, Brittain 305 West 76th St. NY NY filed with DE Secy. of State, 401 to the LLC, 56 West 45th Street, 4th State. Cert. of LP filed with DE Sec. Townsend Bldg., Dover, DE 19901. 10023. Purpose: Any lawful activity. Federal St., Dover, DE 19901. Floor, New York, New York 10036. of State, P.O. Box 898, Dover, DE Name/addr. of each gen. ptr. avail. at 1181771 m3-Tu a7 Purpose: any lawful activity. Purpose: For any lawful purpose. 19903. Purpose: any lawful activity. SSNY. Purpose: any lawful activities.

26 | Crain’s New York Business | March 16, 2009 nb11p26-27cls.qxp 3/12/09 3:09 PM Page 27

PUBLIC & LEGAL NOTICES

NOTICE OF FORMATION OF Notice of formation of Limited Liability Notice of Qualification of GS PEG Notice of Qualification of ASHBURN- Notice of Qualification of Antipodean ASHURST LLP. Notice of Reg filed Company. Name: Wight Partners Employee Funds VI Advisors, LLC. HAM ROCK CAPITAL MANAGE- Advisors LLC filed under the original with NYS Dept of State Div of LLC. Articles of Organization filed Authority filed with Secy. of State of NY MENT LLC. Authority filed with Secy. name Antipodean Capital, LLC, App. Corporations on 11/29/07. with the Secretary of State of New (SSNY) on 12/31/08. Office location: of State of NY (SSNY) on 01/30/09. for Auth. filed Sec’y of State (SSNY) Jurisdiction: England & Wales. LLP York (SSNY) on 1/7/2009. Office NY County. LLC formed in Delaware Office location: NY County. LLC 12/16/08. Office location: NY County. registered at Companies House, location: New York County. SSNY has (DE) on 12/22/08. SSNY designated formed in Delaware (DE) on 01/26/09. LLC org. in DE 12/15/08. SSNY des- London on 7/31/07. Address in been designated as agent of the LLC as agent of LLC upon whom process Principal office of LLC: 455 Central ignated as agent of LLC upon whom England: c/o The Partnership, upon whom process against it may against it may be served. SSNY shall Park West, 19C, NY, NY 10025-3847. process against it may be served. Broadwalk House, 5 Appold St, be served. SSNY shall mail a copy of mail process to: 85 Broad St., NY, NY SSNY designated as agent of LLC SSNY shall mail copy of process to London EC2A 2HA. Office location: process to the LLC, 150 East 93rd 10004. DE address of LLC: 1209 upon whom process against it may be Attn: Eric Chen, 499 Park Ave., 10th New York County. Principal office of St., #4D, NY, NY 10128. Purpose: For Orange St., Wilmington, DE 19801. served. SSNY shall mail process to Fl., NY, NY 10010. DE office addr.: c/o LLP: 156 W 56th St, NY, NY 10019. any lawful purpose. Cert. of Form. filed with DE Secy. of the LLC at the principal office of the CSC, 2711 Centerville Rd., Wilmington, Secretary of State of New York State, P.O. Box 898, Dover, DE LLC. DE address of LLC: Corporation DE 19808. Cert. of Form. on file: (SSNY) designated as agent of LLP Notice of Formation of MADISON 19903. Purpose: any lawful activity. Service Co., 2711 Centerville Rd., SSDE, Townsend Bldg., Dover, DE upon whom process against it may HOTEL OWNERS LLC. Arts. of Org. Wilmington, DE 19808. Arts. of Org. 19901. Purpose: any lawful activities. be served. SSNY shall mail process filed with Secy. of State of NY Notice of Formation of WHEATLEIGH filed with Secy. of State of DE, Div. of to LLP at the address of its principal (SSNY) on 07/08/08. Office location: MANAGEMENT LLC. Arts. of Org. Corps., John G. Townsend Bldg., 401 Notice of Qualification of SAVVY office. Purpose: Any lawful activity. NY County. Principal office of LLC: filed with Secy. of State of NY (SSNY) Federal St., Ste. 4, Dover, DE 19901. DRINKS LLC. Authority filed with 150 E. 52nd St., 10th Fl., NY, NY on 01/23/09. Office location: NY Purpose: Any lawful activity. Secy. of State of NY (SSNY) on NOTICE OF FORMATION of 10022. SSNY designated as agent of County. Principal office of LLC: 15 W. 01/15/09. Office location: New York Amerisphere Mortgage Finance LLC upon whom process against it 39th St., 8th Fl., NY, NY 10018. SSNY Notice of Formation of JOSLYN LEVY County. LLC formed in Delaware (DE) LLC. Arts. Of Org. filed with Secy. may be served. SSNY shall mail designated as agent of LLC upon & ASSOCIATES LLC, a domestic on 01/08/09. SSNY designated as of State of N.Y. (SSNY) on process to the LLC, c/o Livorno whom process against it may be LLC. Arts. of Org. filed with the SSNY agent of LLC upon whom process 11/17/08. Office location: New York Properties at the principal office of served. SSNY shall mail process to on 12/16/08. Office location: NY against it may be served. SSNY shall County. SSNY designated as agent the LLC. Purpose: Any lawful activity. the LLC at the address of its principal County. SSNY has been designated mail process to Patterson Belknap of LLC upon whom process against office. Purpose: All lawful purposes. as agent upon whom process against Webb & Tyler LLP, Attn: John E. it may be served. SSNY shall mail Notice of Formation of Clara Fox the LLC may be served. SSNY shall Schmeltzer III, Esq., 1133 Ave. of the Americas, NY, NY 10036. DE address process to: 111 Eighth Ave. NY, NY Ricciardi, LLC. Arts. of Org. filed with Notice of Qualification of JPMORGAN mail a copy of process to: 230 W of LLC: c/o Corporation Service Co., 10011. Principal business location Secy. of State of NY (SSNY) on ASIA PRIVATE EQUITY FUND LLC. 105th St. Apt 9D, NY, NY 10025. 2711 Centerville Rd., Ste. 400, 1125 South 103rd St. Omaha, NE 1/15/09. Office location: NY County. Authority filed with Secy. of State of Purpose: Any Lawful Purpose. Wilmington, DE 19808. Arts. of Org. 68124. Purpose: Any lawful activity. SSNY designated as agent of LLC NY (SSNY) on 01/30/09. Office loca- filed with DE Secy. of State’s Office, 11167541 w.o. upon whom process against it may tion: NY County. LLC formed in ALICIA HALEGUA STYLE LLC Div. of Corporations, John G. be served. SSNY shall mail process Delaware (DE) on 11/12/08. Principal Articles of Org. filed NY Sec. of State Townsend Bldg., Federal & Duke of Notice of Formation of Juneapple to: 123 Sullivan St., Unit #1, NY, NY office of LLC: 245 Park Ave., NY, NY (SSNY) 9/16/08. Office in NY Co. York St., Dover, DE 19901. Purpose: Projects LLC. Articles of Organization 10012. Purpose: any lawful activity. 10167. SSNY designated as agent of SSNY desig. agent of LLC upon Any lawful activity. filed with Secy. of State of NY (SSNY) LLC upon whom process against it whom process may be served. SSNY on February 2, 2009. Office location: Notice of Qualification of Flexion may be served. SSNY shall mail shall mail copy of process to 210 E. New York County. SSNY designated Management, LLC, App. for Auth. process to c/o Corporation Service 65th St., Unit 17L, NY, NY 10065, Notice of Formation of RAINMAKER as agent of LLC upon whom process filed Sec’y of State (SSNY) 9/5/08. Co. (CSC), 80 State St., 6th Fl., which is also the principal business MANAGEMENT, LLC. Arts. of Org. against it may be served. SSNY shall Office location: NY County. LLC org. Albany, NY 12207. DE address of location. Purpose: Any lawful purpose. filed with SSNY on 7/20/07. Office mail process to the LLC, c/o Hecht & in DE 9/3/08. SSNY designated as LLC: c/o CSC, 2711 Centerville Rd., location: New York County. SSNY Co. P.C., 622 Third Ave, 8th Floor, agent of LLC upon whom process Ste. 400, Wilmington, New Castle designated as agent of LLC whom New York, NY, 10017. Purpose: against it may be served. SSNY shall Cnty., DE 19808. Arts. of Org. filed BITS AND ATOMS, L.L.C. Art. of Org. process against may be served. engage in any lawful act or activity. mail copy of process to 733 Third with Secy. of State of DE, Secy.of Filed Sec. of State NY 1/30/2009 Off. SSNY shall mail process to: c/o The Ave., 11th Fl., NY, NY 10017. DE State Corp. Dept., Records Section, Loc. New York Co. SSNY designated LLC, SHANE L. BENSON, 100 office addr.: c/o CSC, 2711 Townsend Bldg., Loockerman & as agent upon whom process against Suffolk St., Apt 1A, New York, NY Notice of Qualification of Prosium it may be served. SSNY to mail copy Fund Management, LLC, App. for Auth. Centerville Rd., Wilmington, DE Federal St., Dover, DE 19901. 10002. Purpose: all lawful activities. 19808. Cert. of Form. on file: SSDE, Purpose: To invest in operating com- of process to THE LCC c/o Anthony filed Sec’y of State (SSNY) 11/24/08. Townsend, 115 E 9th St, Ste. 10H, Office location: NY County. LLC org. Townsend Bldg., Dover, DE 19901. panies and limited partnerships and Notice of Qualification of AG MORT- Purpose: any lawful activities. other pooled investment vehicles that NY, NY, 10003. Purpose: Information in DE 11/21/08. SSNY designated as technology consulting services. GAGE VALUE PARTNERS MASTER agent of LLC upon whom process make corporate finance and venture FUND, L.P. Authority filed with Secy. against it may be served. SSNY shall Notice of Formation of HIP HOP USA capital investments. of State of NY (SSNY) on 02/06/09. NOTICE OF FORMATION of Law mail copy of process to Attn: John H. LLC, a domestic LLC. Arts. of Org. Office location: NY County. LP formed Office of Anna E. Vira, PLLC. Art. of Pettey, 111 Broadway, 10th Fl., NY, filed with the SSNY on 12/02/08. NOTICE OF FORMATION of Blind in Cayman Islands on 10/28/08. Org. filed 01/27/09 with Sec of State NY 10006. DE office addr.: c/o CSC, Office location: NY County. SSNY has Faith Films L.L.C. Art. of Org filed Principal office of LP and Cayman of NY (SSNY). Office in NY County. 2711 Centerville Rd., Wilmington, DE been designated as agent upon with Secy. Of State of N.Y. (SSNY) on Islands address is: c/o Ogier SSNY designated agent for service of 19808. Cert. of Form. on file: SSDE, whom process against the LLC may 10/08/08. Office location: New York Fiduciary Services (Cayman) Ltd., process against the PLLC with copy Townsend Bldg., Dover, DE 19901. be served. SSNY shall mail a copy of County. SSNY designated as agent Queensgate House, S. Church St., mailed to the PLLC: 1040 Ave. of the Purpose: any lawful activities. process to: Curtis Sherrod, 323 West of LLC upon whom process against it P.O. Box 1234, George Town, Grand Americas, Suite 1101, NY, NY 10018. 138th St., Ste 300, NY, NY 10030. may be served. SSNY shall mail Cayman, Cayman Islands. SSNY Purpose: law practice. Notice of Qualification of H.I.G. New Purpose: Any Lawful Purpose. process to principal business loca- designated as agent of LP upon York , LLC. Authority filed with NY Dept. tion: P.O. Box 2984, NY, NY 10163. whom process against it may be of State on 12/16/08. Office location: Notice of Formation of NFF NEW NOTICE OF FORMATION OF LIMITED served. SSNY shall mail process to NY County. Princ. bus. addr.: 1001 MARKETS FUND IX, LLC. Arts. of NOTICE OF FORMATION OF LIMITED LIABILITY COMPANY. NAME: 86 c/o Angelo, Gordon & Co., L.P., 245 Brickell Bay Dr., Miami, Fl 33131. LLC Org. filed with Secy. of State of NY LIABILITY COMPANY.NAME: KADKENT, GUERNSEY, LLC. Articles of Park Ave., 26th Fl., NY, NY 10167. formed in DE on 12/4/08. NY Sec. of (SSNY) on 11/20/08. Office location: LLC. Articles of Organization were Organization were filed with the The registered agent of the company State designated as agent of LLC upon NY County. Principal office of LLC: filed with the Secretary of State of Secretary of State of New York upon whom and at which process whom process against it may be 70 W. 36th St., 11th Fl., NY, NY New York (SSNY) on 07/28/08. Office (SSNY) on 07/21/08. Office location: against the company can be served is served and shall mail process to: c/o 10018. The latest date on which the location: New York County. SSNY has New York County. SSNY has been Corporation Service Co., 80 State CT Corporation System, 111 8th Ave., LLC may dissolve is 11/19/2058. been designated as agent of the LLC designated as agent of the LLC upon St., Albany, NY 12207. Name and NY, NY 10011, regd. agt. upon whom SSNY designated as agent of LLC upon whom process against it may whom process against it may be address of each general partner are process may be served. DE addr. of upon whom process against it may be served. SSNY shall mail a copy of served. SSNY shall mail a copy of available from SSNY. Arts. of Org. LLC: 1209 Orange St., Wilmington, DE be served. SSNY shall mail process process to the LLC, c/o Katan process to the LLC, c/o Shupack & filed with The Registrar of Companies, 19801. Arts. of Org. filed with DE Sec. to Nonprofit Finance Fund at the prin- Developers, 592 Pacific Street, Hardy, LLP, 450 Seventh Avenue, Ground Fl., Citrus Grove Bldg., of State , P.O. Box 898, Dover, DE cipal office of the LLC. Purpose: Any Brooklyn, New York 11217. Purpose: 13th Floor, New York, New York 10123. Goring Ave., George Town, Grand 19903. Purpose: all lawful purposes. lawful activity. For any lawful purpose. Purpose: For any lawful purpose. Cayman, Purpose: Any lawful activity.

March 16, 2009 | Crain’s New York Business | 27 CNYB 03-16-09 A 28 3/13/2009 10:42 AM Page 1

BUSINESS LIVES

EXECUTIVE MOVES

ACCOUNTING & CONSULTING audit. from vice president. EDUCATION HOSPITALITY & TOURISM Ernst & Young: Michael S. Solender, 44, Rosen Seymour Shapss Martin & Co.: Rethink Autism Inc.: Jamie Pagliaro, 32, NY Skyride: Myron D. Baer, 54, was joined as Americas vice chair and Martin L. Greenberg, 51, was promoted ARCHITECTURE & DESIGN was named executive vice president of promoted to vice president of business general counsel. He was formerly to managing partner from partner. Gerner Kronick + Valcarcel Architects: business development. He was formerly development from director of business executive vice president and chief legal Joseph Barbagallo, 50, was promoted to executive director at New York Center development. officer at Washington Mutual Inc. ADVERTISING & COMMUNICATIONS principal from director. for Autism Charter School. KPMG: David B. Elsbree, 39, was Deutsch Inc.: Tom Entrup, 46, was Benita Welch, 44, was promoted to LAW promoted to audit partner from senior promoted to executive vice president and principal from associate. FINANCE & INSURANCE Allen & Overy: John Kibler, 41, was named manager of audit. chief financial officer from senior vice Skidmore Owings & Merrill: Joseph M. Jefferies: Richard Burke, 41, was senior counsel. He had been counsel at Brian Mensink, 34, was promoted to president and controller. Phillips, 59, was named science and appointed managing director of the King & Spalding. audit partner from senior manager of Travel Ad Network: Anthony Katsur, 36, technology practice leader. He had been mergers and acquisitions group. He had Angela Somers, 48, joined as senior audit. was appointed chief technology officer. president of Phillips Collaborative, been partner at Tower Three Partners. counsel. She had been special counsel at Kutlay T. Mescioglu, 39, was promoted to He was formerly chief operating officer which he founded. Cadwalader Wickersham & Taft. audit partner from senior manager of at Heavy Inc. Paul J. Whitson, 41, was appointed HIGH TECH & NEW MEDIA Baker & McKenzie: Marcella Ballard, 45, audit. Widmeyer Communications: Bibb health care practice leader. He was MCG Inc.: Phil Wulff, 51, joined as was promoted to partner from of Sibel Yuksel-Mescioglu, 40, was promoted Hubbard, 40, was promoted to senior formerly principal at daSilva principal. He had been a vice president counsel. to audit partner from senior manager of vice president and managing director Architects. at E1 Entertainment Distribution. Crowell & Moring: Pieter Bekker, 42, joined as partner. He had been partner at McDermott Will & Emery. Debevoise & Plimpton: Michael B. Mukasey, 67, joined as partner. He was formerly U.S. attorney general. Dechert: Howard Kleinman, 46, joined as partner. He had been partner at White & Case. Jones Day: Anthony L. Perricone, 49, was named partner. He was formerly Want to STAND OUT from the crowd? partner at Sonnenschein Nath & Rosenthal. Pryor Cashman: Richard C. Schoenstein, 43, Promote your coverage with Crain’s Custom Reprints joined as partner. He had been partner at Paul Hastings Janofsky & Walker. Sheppard Mullin Richter & Hampton: Daniel L. Brown, 38, was promoted to partner from associate. Seth Kim, 42, was promoted to partner from special counsel. What are the Stroock & Stroock & Lavan: Christopher McGlashan, 44, joined as special counsel. benefits of reprints? He had been managing director at Citigroup. Zeichner Ellman & Krause: Glenn D. • Offer a unique opportunity to co-bbrand your Burlingame, 48, joined as partner. He company with a reputable news source was formerly partner at Dreier. MEDIA & ENTERTAINMENT • Help underscore your PR efforts ION Media Networks: Leslie Glenn Chesloff, 50, was named executive vice • Great addition to your press kits president of programming, a new position. She was formerly a senior vice • Great recruitment and retention pieces president at Lifetime Entertainment Services. • Digital reprints boost your news/press Social Gaming Network: Eric Huynh, 40, was appointed chief technology officer web pages and help drive traffic to your site and vice president of engineering, a new position. He had been chief technology • Boost employee and company morale officer, Worldwide Studios, at Vivendi Games Mobile. Titan Worldwide: Rob Marlow, 46, was promoted to senior vice president and worldwide chief information officer, a new position, from chief information officer of North America. REAL ESTATE Eastern Consolidated: Mark R. Gjonbalaj, 34, joined as director. He was formerly a senior associate at Marcus & Millichap Real Estate Inc. Studley: Jeffrey Peck, 45, was promoted to senior managing director from corporate managing director. David Providenti, 39, was promoted to senior managing director from corporate managing director. Reprint (Print & Digital) Plaque Allyson Bowen, 33, was promoted to managing director from associate director. Brad Wolk, 31, was promoted to ASK ABOUT OUR REPRINT PRODUCTS: managing director from associate HARD COPY REPRINTS • EPRINTS • PLAQUES • BANNERS/BUTTONS • TRADE SHOW COLLATERAL • POSTCARDS director. SERVICES Community Preservation Corp.: Andrew Padian, 51, was named vice president for energy initiatives. He had been a director at Steven Winter Associates. —maia blume Contact Lauren Melesio at 212.210.0707 or [email protected] for information on how to turn your Crain’s press coverage into great marketing. EXECUTIVE PROMOTIONS The fastest way to get an announcement into Crain’s is to submit details online. Fill out the form at www.crainsnewyork.com/submit. The Executive Moves column is also available online.

28 | Crain’s New York Business | March 16, 2009 CNYB 03-16-09 A 29 3/12/2009 9:22 PM Page 1

BUSINESS CORPORATE LADDER Banker invests in his future and his past at boutique PAGE 30 david neff david

GOTHAM GIGS Reframing the centuries Daddy & Me! after almost three decades of practicing his craft, ELI BONDING: Lance WILNER, 53, has perfected the Newly jobless fathers Somerfeld (left, with art of replicating antique son, Jake) and Matt frames.The head of Eli Schneider (with Sam) discover ups and downs are part of a weekly Wilner & Co. uses proprietary full-time-fathers’ techniques to make frames of stay-at-home life group started by look centuries old. Mr. Somerfeld. “I felt isolated.” FINE ART EXPERT A native of Israel, Mr. Wilner moved to New York in 1976. After receiving an M.F.A. from Hunter College, he began his career as a painting restorer but found the chemicals overwhelming. He changed his focus to framing and started his business in 1984. PATRIOTIC PORTRAITS Mr. Wilner has been involved in 28 White House projects, and his work now hangs in the Oval Office. He receives commissions from institutions nationwide, as well as from executives and corporations. TIMELESS WORKS Though the recession has hit client budgets, his work is still in demand. “If beautifully done, the frame will elevate the aesthetic experience,” Mr. Wilner says. —maia blume EXPERT OPINIONS EYE FOR STYLE when shopping for glasses, look for a shape that will complement you. If you have a square face, an oval lens will make it look longer. Angular frames narrow a round face, and wider ones are great for an oval face because they keep features buck ennis in balance. Polarized “My wife quickly made it clear that I am not to refer to lenses cut BY HILARY POTKEWITZ

istockphoto glare and are myself as ‘just the baby-sitter,’ ” Mr. Jensen says, “and under no great for boating or the beach. t first, scott jensen joked that he was the circumstances am I to act like one.” Anti-reflective coating for new “manny” (that is, male nanny) and said he Mr. Jensen is hardly alone.The New York industries indoor glasses will make your churning out the most layoffs so far in this recession tend to be vision sharper. Experiment was only “baby-sitting” his 3-year-old daughter, with color, and get something Heather. male-dominated—Wall Street, law, technology—and that has exciting to accentuate your The former telecom chief executive lost his job left hundreds, if not thousands, of city and suburban dads both best features. in November, when the company he worked for jobless and taking on a growing share of child-care duties. —deborah lochli closed its U.S. offices. So his wife, Becky, took The task can be daunting for new dads, especially since so Licensed optician and spokeswoman on more hours at her physical therapy and yoga much of the child-activity network is female-focused. In a Vision Council A practice, and he became a stay-at-home dad. See DADDY on Page 30 March 16, 2009 | Crain’s New York Business | 29 CNYB 03-16-09 A 30 3/12/2009 9:23 PM Page 1

BUSINESS LIVES CORPORATE LADDER Frederic Seegal Back to where he began Former Lehmanite of many displaced Wall Streeters. Former Morgan Stanley communi- PERSONNEL FILE reconnects, 37 years cations banker Richard Brail also came on board last month. And COMPANY Peter J. Solomon later, with mentor Robert Glauber, former head of the & Co. National Association of Securities TITLE Senior adviser at Peter J. Solomon Dealers, joined in 2006. Though the investment banking AGE 61 BY AARON ELSTEIN business is undeniably dismal at the RÉSUMÉ President, Wasserstein moment, Mr. Seegal is confident Perella n 1972,novice banker Freder- that he and his new colleagues can HOBBIES ic Seegal took a job with Pe- use their Rolodexes to land compa- Golf, visiting art galleries ter Solomon, a big shot at nies looking for bankers who have FAVORITE RESTAURANTS Lehman Brothers. His pay: seen tough times. Chanterelle, Le Bernardin $150 a week. IThirty-seven years later, Mr. Trust earned Seegal, now a successful dealmaker “the most important thing a mergers banker at Lehman. in his own right,is again working for banker can do is earn a business Mr. Seegal garnered clients like his old boss. He joined boutique in- leader’s trust so you can have honest radio executive Mel Karmazin, vestment bank Peter J. Solomon & conversations, and that’s something and he counseled Time Inc. when Co. in February to advise battered I’ve worked on for years,” Mr. See- it merged with Warner Communi- financial institutions and media gal says. cations. He later had a hand in big companies. Bleak as things look now,he says, Wall Street deals, acting as con- “The chemistry between us and they didn’t seem too promising sultant to Dean Witter in its union

the respect is still there,” Mr. Seegal when he set out, either.Then, infla- with Morgan Stanley. buck ennis says of his mentor, whom he recon- tion and soaring oil prices roiled the He left Lehman in 1990 for Sa- nected with last fall after deciding nation; just as the business climate lomon Brothers, where he stayed dent Barack Obama’s chief of staff, tons house in 1999, when Helmut his own entrepreneurial effort, a began to improve, Mr. Solomon left until a bid-rigging scandal damaged Rahm Emanuel. Lang’s $14.5 million bid trumped shop called Seegal Benson Leucadia Lehman to be a part of Mayor Ed the firm and Warren Buffett took Jerry Seinfeld’s offer, according to Partners, wasn’t the ideal situation. Koch’s administration. over. Mr. Seegal was among the first Money not an issue the New York Observer. “I missed talking to people,being Mr. Seegal threw himself into to leave, he says, because he was cer- mr. seegal says he got into invest- Indeed, to hear Mr. Seegal tell it, in a group,” he says. media advisory, a relative back- tain that pay cuts loomed. ment banking on the mistaken be- his current compensation isn’t much Mr. Solomon calls Mr. Seegal water at the time. He secured his In 1994, he became president of lief that he wouldn’t have to work more than his paycheck way back “one of America’s most creative in- niche with colleagues like Stephen Wasserstein Perella, founded by weekends—as his father, a retail ex- when. vestment bankers.” Schwarzman,now chief executive of renowned banker Bruce Wasser- ecutive,had.He certainly isn’t still in “Inflation-adjusted, it’s a push,” Solomon has become the home Blackstone Group and a former top stein. His associates included Presi- it for the money.He sold his Hamp- he quips.

David Weinstone, president of coded chart with everyone’s daily plaint,but some dads feel they’re be- Music for Aardvarks, a nationwide activities for the next two months.” ing shunned by mothers and nan- Daddy & Me! kids program, reports seeing an in- Indeed, he and his wife just had nies in child-activity classes. crease in the number of fathers at his a “60-day planning session.” “They treat my husband like Continued from Page 29 A casual weekday stroll in certain weekday classes in Manhattan. Mr. Jensen says he still fields 10 he’s invisible,” posts one user on world of Mommy & Me groups, neighborhoods—especially Battery “It’s primarily at our SoHo and to 20 phone calls per day related to UrbanBaby.com, a city parenting breast-feeding workshops and bal- Park City,the Upper East Side,Park Battery Park locations,” he says. his job search. But the past few site—a sentiment echoed by others. let classes where the aesthetic is Slope and Brooklyn Heights—can “Those are the places where a lot of months with his toddler have Even for dads who socialize overwhelmingly pink, there are few yield all kinds of dad sightings.The the families probably had one par- changed his goals. He can’t imagine across gender lines, it’s just not the programs that reach out to fathers. newbies are especially easy to spot as ent working in the hedge fund and going back to the old routine of same. “You have a different kind of “When my wife went back to they bump into café tables with finance industry.” making it home barely in time for a discussion with guys than you do work after her maternity leave end- strollers, not yet able to parallel- kiss goodnight. with moms,” Mr. Somerfeld says. ed, I felt isolated and was not meet- park the things with ease. Child care with a CEO’s fervor For his next job, he’s looking for “Things like, ‘Does it feel weird to ing any other dads,” says Lance many of the newly unemployed a short commute. And he’s serious- have a baby girl?’ or who’s sharing Somerfeld, a teacher who took this fathers think of this time as a tem- ly considering the idea of working their bed with the baby,and how you year off to spend more time with It’s easy to spot porary spell. The current flock of from home one day a week. handle the whole intimacy thing.” their 7-month-old, Jake. “I know young parents, mostly Generation Until that happens, it helps that Those are topics that many men there are hundreds of stay-at-home new dads, hitting Xers, “still retain some of that value he’s found a group of fellow telecom might feel uncomfortable dis- dads in New York,but I couldn’t find set where men feel they need to be workers, also unemployed, also fa- cussing with a woman other than his any dads’ groups. Most guys just café tables with the providers,” notes Hilary Eaton thers of baby girls, also living in the wife, let alone a group of women. don’t like to ‘ask for directions.’ ” Pearl of human resources consultan- suburbs. “You have a certain com- “And sometimes,” Mr. Somer- So in November, Mr. Somerfeld their strollers cy Pearl Associates. “But they also miseration process,”Mr.Jensen says. feld adds sheepishly, “you just want started an online Meetup group for want to maximize every experience.” It may seem like a frivolous com- to talk sports.”
stay-at-home dads who were climb- Luckily, that same determina- ing the walls of their Manhattan tion can be harnessed on the home apartments as winter approached. front. Though the first couple of DAD-FRIENDLY CLASSES AND GROUPS Within a month,45 dads had joined. “I’ve definitely seen a lot more weeks are often touch-and-go— The group now meets for weekly dads out and about over the past few Mr. Jensen’s wife left Post-it notes THE 92ND STREET Y offers a five-week class, “New Dads—Dads and events, drawing a core of eight or so months,” says Lee Stern, director of for him all over their Chappaqua Babies,” for fathers and infants, newborn to 12 months. The class meets fathers with munchkins in tow. Music Together Brooklyn Heights, house—some former execs find Sunday mornings, so it doesn’t interfere with Sunday-afternoon sports. a children’s program. “I’d say one- themselves channeling their man- Go to www.92y.org for details. A pack of Baby Björns third to half the people walking agement skills and attention to de- NEW YORK CITY DADS MEETUP GROUP is a casual social network “to meet one day, five dads spent time to- down Henry Street tend to be guys, tail toward the task at hand. other local stay-at-home dads in and around NYC, to arrange play dates with gether walking around the Metro- not women, picking up kids after Take Mr. Jensen. kids and interact with other guys in the same situation.” Meetings are usually politan Museum of Art,toting their school, and that’s new.” “At first,I had to keep reminding midweek; six to eight dads and their babies attended the 10 events held so progeny in Baby Björns. Mr. Stern hasn’t yet figured out myself that I’m not just watching far. Go to www.meetup.com/new-york-city-dads-meetup-group. “At one point,” Mr. Somerfeld how to tap into the influx of daytime my daughter for the day,” he says. recalls, “I was furiously doing laps dads—though he notes that one of But once he changed his mind- MUSIC SCHOOLS with dads on the scene include Music Together Brooklyn around the Temple of Dendur try- his infant music classes, usually at- set, he tackled the job with a CEO’s Heights (www.musictogetherbrooklynheights.com) and Music for Aardvarks ing to get Jake to go to sleep,and the tended exclusively by mothers with fervor. “I set up a whiteboard and a (www.musicforaardvarks.com). other guys were just standing there.” children, now has two fathers in it. monthly planner, and made a color-

30 | Crain’s New York Business | March 16, 2009 CNYB 03-16-09 A 31 3/12/2009 8:53 PM Page 1

BUSINESS LIVES TABLE TALK by Bob Lape STAR TURN: Alain Allegretti spent time at Le Cirque and Atelier before opening a Roaming the signature spot. French Riviera Allegretti’s on the glint of warmth. Mr. Allegretti and chef de cui- right food path, sine Giuseppe Barretta start guests off with a soup amuse-bouche. Not but service is often all succeed. An asparagus offering studded with ricotta salata proves oddly inconsistent thin in texture and taste. On anoth- er evening, an overly salty bean- he first signature and-bacon potage arrives 20 min- restaurant of chef and utes after dinner orders are placed. I owner Alain Allegretti, miss finding the Provençal fish formerly of Le Cirque soup, which New York magazine re- and Atelier, offers flavor cently named the year’s best. Tfinesse and visual First courses style at a lower price ($11 to $20) demon-

point. His focus in strate full-flavored buck ennis this Flatiron loca- goodness. I love tion is on the French chunks of Perugina bread and accompanied by onion than a dime—as well as baby arti- fruit crème,is no more than two and Riviera’s sparkling sausage in sweet marmalade, date purée and a deli- chokes and spinach. Roast monk- a half inches wide but killer good. mix of seafood and pepper-and-onion cious lentil salad. fish, another standout, is bathed in Lemon tart, as well as a grappa- meat in straight-for- ragout with two Braised meats—oxtail and veal lobster jus and served with ravioli of chocolate fondant with ricotta-al- ward, well-prepared panisses, or chick- cheek—figure in a quartet of pastas, wild mushrooms and shrimp. mond gelato, are demure in all but dishes. pea-flour fries; black and wild boar, pheasant and rabbit Less is often more at Allegretti. labor and result. That’s not to say truffle-accented are among the meat entrées.Jump at Cooking times are minimal, and That Allegretti’s food can be so that Allegretti is in- grilled diver scallops the rabbit! Juicy, tender and framed portion size is modest—a fact dram- stimulating makes it especially an- expensive or that the ALLEGRETTI in brown-butter jus; with baby vegetables, it’s great eat- atized by the large white plates. noying when service swings from at- service is equal to its 46 W. 22nd St. and a cassolette of ing, whether the roast loin “à la Desserts ($10) compensate for tentive and intelligent to lacking and namesake’s previous (between Fifth and Sixth Provençal vegeta- moutarde” or the braised leg. their diminutive nature with excel- limping. For example, a captain try- haunts. When it’s avenues) bles.The latter is one The kitchen handles its seafood lence. Nougat glacé marries textural ing to sell a second bottle of wine good, it’s very good, (212) 206-0555 of many items in options assuredly. Roast cod in interest from dried fruit and nuts long before the first was finished was but several visits re- www.allegrettinyc.com which Mr. Allegret- lemon sauce is punctuated with the with taste harmony. Zuccotto au just one clunker in an evening of veal inconsistencies. ti showcases the tiniest calamari I’ve seen—smaller café, served with a dollop of passion awkward moments.
The food is the ½ earthy intensity of star here, and the CUISINE Provençal fine produce with setting smacks not WINES 220 choices, 25 by the careful cooking. so much of sunny glass Heirloom beet anywhere but of vin- DRESS No code salad is a painterly if tage hotel. Cream- petite composition colored walls, one of NOISE LEVEL Lively on a rectangular which is covered PRICE RANGE $22-$36, prix fixe white plate: five or with large mirrors, lunch, $28; early dinner, $42 six bite-sized beets, bear sconces that re- WINE MARKUP 95%-280% a dab of warm Ta- semble hurricane CREDIT CARDS All major leggio, a shaving of lamps. A case dis- RESERVATIONS Recommended pear, a squiggle of playing corals sepa- mâche and a bold rates the six-seat bar HOURS Lunch, Mon.-Sat., 11:45 smear of black truf- a.m.-2:30 p.m.; Dinner, Mon.- from the dining Sat., 5-11 p.m. fle vinaigrette. room. In a far cor- A thin slice of ner of that room, a = Outstanding porchetta, fat-be- wood-burning = Excellent speckled and in- = Very good oven—a remnant of tensely liver-fla- another incarna- = Good vored, is served on tion—supplies a grilled country

BEST OF BOB LAPE

More Mediterranean mealtime East 20th Street), Manhattan. meccas: (212) 995-0242. Chef Efraim Na- hon elevates this handsome ethnic Ammos Mediterranean eatery, with im- www.ammosnewyork.com pressive bar buzz, to new heights of 52 Vanderbilt Ave. (located be- popularity. tween East 44th and East 45th streets), Manhattan. Convivio (212) 922-9999. Wunderkind chef www.convivionyc.com Marcum & Kliegman LLP David Ogren brings real creative 45 Tudor City Place (located Certified Public Accountants & Consultants fire to the handsome Mediter- between East 41st and East 42nd An M&K Group Company ranean-Greek eatery near Grand streets), Manhattan. (212) 599-5045. Central Terminal. An inspired southern Italian fla- www.MKLLP.com vor experience from chef Michael Barbounia White, in the former L’Impero New York, NY Melville, NY Roseland, NJ Tinton Falls, NJ Greenwich, CT Grand Cayman, BWI www.barbounia.com space. The food, service and wine 212.981.3000 631.414.4000 973.618.0800 732.922.9900 203.861.9700 800.921.0777 250 Park Ave. South (located at are terrific.

March 16, 2009 | Crain’s New York Business | 31 s s s s