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How CEO John Foley steered exercise-bike company Peloton to a seven-figure growth rate and $43 million in revenue. PLUS: The 49 other hottest companies in New York Page 17

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FROM THE NEWSROOM | JEREMY SMERD IN THIS ISSUE Call the commissioner 4 AGENDA

WITH ALL THE NEW MANDATES New York City businesses must 6 IN CASE YOU MISSED IT Central Park comply with, it’s no wonder Mayor Bill de Blasio has had to 7 HEALTH CARE Conservancy CEO on rich expand government to police them. In August, City Hall 8 FOOD parks and hired Liz Vladeck to head the new Office of Labor Policy poor parks 10 ASKED & ANSWERED and Standards. The announcement followed the hiring ear- 12 WHO OWNS THE BLOCK lier this year of Lorelei Salas, former state Labor Department official, as the new Department of Consumer Affairs -com 13 REAL ESTATE missioner. (She replaced Julie 15 VIEWPOINTS Menin, who now heads the May- FEATURES or’s Office of Media and Entertainment.) We invited the I really mean it 17 FAST 50 executives to the newsroom to get a sense of their plans. when I say we want Both are thoughtful civil servants who are steeped in advo- “ cacy on behalf of workers and are open to learning about to hear from the the challenges facing businesses. In other words, if you are business community a business or business organization, I suggest reaching out and educating them on the issues that are important to you. “I really mean it when I say we want to hear from the business community,” Salas said. “As we’re implementing these laws, we want to hear from employers.” Email [email protected], tweet to @NYCDCA or live- FOOD52 chat with a DCA representative by visiting nyc.gov/dca. Better yet, hire a lobbyist. DCA, you might remember, is enforcing the paid-sick-leave law and new regulations covering fast-food workers and (soon) the car-wash industry. In general, it 49 GOTHAM GIGS responds to complaints about businesses: At the top are furniture stores, used-car 50 SNAPS dealers and home-improvement contractors. There will be a learning curve for these new officials and for the department, whose staff of 430 has increased by nearly 51 PHOTO FINISH 100 in five years, with 25 slated for the Office of Labor Policy and Standards. Salas said the department has issued $1.4 million in fines and recovered $2.6 million in restitution for paid-sick-leave violations. We’ve been told that the City Council wants to expand the crackdown on fast-food companies that make last-minute changes to workers’ shifts to other industries and smaller businesses. “We will be looking closely at scheduling practices in other industries,” Salas said. Advocates say such a law should not even be necessary, given that most fast-food companies use scheduling software and know well how many workers they need and when. Actually, it’s easy to understand why. Mandates are used to encourage behaviors that achieve a policy goal. But when policymakers penalize rather than reward businesses, the behavior they encourage is avoidance. Companies that must ON THE COVER provide paid sick leave or health care when workers hit a certain number of hours PHOTO: BUCK ENNIS are going to manage those hours below the threshold to keep costs down. If you agree with that notion, I’m sure the commissioner would like to hear from you.

DIGITAL DISPATCHES

CONFERENCE CALLOUT NOVEMBER 1 Go to CrainsNewYork.com READ Ralph Lauren Getting ready for promoted the found- 9 million New Yorkers er’s son David to chief > Together with private- and innovation officer public-sector leaders, like and vice chairman of Carver Bancorp Chairman the fashion company Deborah Wright, in an effort to make the Crain’s will explore answers to the label cool again. questions facing New York as it n reaches a population milestone. Delta Air Lines CEO Ed Bastian said his company is not to blame for LaGuardia SHERATON NY TIMES SQUARE Airport’s crumbling condition. The airline has kept its terminals up-to-date and even 8 a.m. to noon agreed to build a new one as part of the [email protected] airport’s overhaul. n Donald Trump paid $174,444 in property Vol. XXXII, No. 41, October 10, 2016—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double issues the weeks of June 27, July 11, July 25, Aug. 8, Aug. 22 and Dec. 19, by Crain Communications Inc., 685 Third taxes last year on his 30,000-square-foot Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send penthouse at Trump Tower, according to city address changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. records. Public data suggests at least 0.27% For subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. of Trump’s income goes to paying taxes. (GST No. 13676-0444-RT) ©Entire contents copyright 2016 by Crain Communications Inc. All rights reserved. BUCK ENNIS, JAMES RANSOM/FOOD52

October 10, 2016 | CRAIN’S NEW YORK BUSINESS | 3

P003_CN_20161010.indd 3 10/7/16 8:19 PM WHAT’S NEW October 10, 2016

AGENDAThe waiting is the hardest part… especially for New Yorkers

eventeen months ago, an engineering-firm executive visited Crain’s to talk about the region’s infrastructure, a subject of perpetual concern to business leaders. He lamented, as they all do, that projects don’t get enough (or any) funding or are half- Sbaked. He cited a plan to rebuild toll plazas at the RFK Bridge complete with the bars that come down in front of every vehicle. Toll gates? Really? The technology to collect tolls without drivers having to slow down, let alone stop, was already in use around the country. Yet the Metropolitan Transportation Authority was building a monument to obsolescence. At the time, the agency told us it was concerned that it wouldn’t be able to NO STOPPING US NOW: At-speed tolling is finally coming to MTA bridges and tunnels. collect money from motorists who lacked E-ZPass tags. Last week, Gov. Andrew Cuomo mercifully announced the imminent end of toll gates at MTA bridges and tunnels. Drivers without E-ZPass— should explore ways to make truck-based deliveries and service calls more and for the life of us, we cannot fathom why there are still so many of efficient, perhaps with hub-and-spoke systems for particular industries. them—will get a bill in the mail, courtesy of electronic license-plate readers. Currently we have the Wild West, with half-empty trucks and vans travel- Regular users of these crossings will be spared dozens of hours a year waiting and double-parking at high-traffic times and locations. ing in toll plaza–induced traffic. Even walking—the city’s primary mode Time is precious, especially to New Time is precious to New Yorkers. We of travel—is slowing down as job and tour- Yorkers. We should not have to waste it be- ism growth overwhelm narrow sidewalks. cause our government is stuck in the last cen- should not have to waste it because Transportation Commissioner Polly Trot- tury. At-speed tolling and accordion-style government is stuck in the last century tenberg has gotten off on the right foot, subways trains (another recent Cuomo an- giving some curb space to pedestrians, but nouncement), while welcome, should have actual sidewalk widening and removal or re- been here by now. And many other improvements are needed to save city positioning of obstacles is needed in crowded areas like midtown. Some- dwellers and visitors from tedious waits. Although road engineers have times we get the feeling that agencies feel no urgency because they all look made some improvements, such as the long-overdue conversion of the FDR good compared with the notoriously Byzantine Department of Buildings. Drive’s Brooklyn Bridge ramp to two lanes, traffic will keep getting slower Well, Buildings is trying, as other departments should be, regardless. We as the city grows until congestion pricing is introduced. Also, City Hall are, after all, tired of waiting. — THE EDITORS

FINE PRINT Beginning with a move by Cravath Swaine & Moore in June, 23 of the city’s 25 largest law firms have raised the starting salaries of their first-year associates by 12.5% to $180,000 a year. “It was probably time to drop a little money on them, to make sure they’re at least a little bit happier,” said Mark Jungers of the legal recruiting firm Lippman Jungers. “They’ve been working like dogs.”

BY GERALD SCHIFMAN S T

25 WORDS OR LESS A T

NY’S CROSS-HUDSON COMPETITION S NEW JERSEY’S GAS TAX will soar to 37.5 cents per gallon—nearly matching New York’s— AND “Baseball has a way of under a new law that will also make it cheaper to shop and die in the Garden State. ripping your ♥ out, New York state gas tax, T stabbing it, putting 43.4 in cents per gallon HE CI

it back in your chest, Sales tax for New Jersey in NJ income tax for joint married filers T

% 2017, two percentage points % earning $500,000 to $2 million, who Y then healing it just 6.875 lower than in New York City 8.97 pay 6.85% in NY in time for spring Estate tax in NJ on a $10 million estate in 2018; in NY it will be more training. $0 than $1 million

—Mets pitcher Noah Syndergaard in a State gas tax in NJ, in cents per gallon, tweet, after pitching seven scoreless before the 159% hike approved Friday innings in a 3-0, season-ending loss to 14.5 the San Francisco Giants

AP ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY SOURCES NJ.com, American Petroleum Institute, New York State Department of Taxation and Finance, SmartAsset

4 | CRAIN’S NEW YORK BUSINESS | October 10, 2016

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Job FiOS SMB Hot Zone Chocolate Maker Media Type Print Bleed 11.124” x 14.75” Printed at None Approvals Acct Mgr Round Art Director Production Client Verizon FiOS Publication Crain’s_NY Trim 10.875” x 14.5” Saved at 10-3-2016 9:12 AM Copywriter PM Agency McCann By Accenture CH Insertion Date 10-Oct Live 10.25” x 14” Proofreader Client B

NOTES: None | FONTS: Helvetica Neue LT Std (47 Light Condensed), Neue Haas Grotesk Display Std (75 Bold, 55 Roman) | IMAGES: CNY_MCN_160902_A1_CoffeeShop_SWOP_V1.tif (CMYK; 308 ppi), vz_fios_bv_v_cmyk_p.eps AGENDA ICYMI CRAINSNEW YORK BUSINESS EDITOR IN CHIEF Rance Crain publisher, vp Jill R. Kaplan assistant to the publisher Devin Arroyo, 212.210.0701 EDITORIAL Job surge shows Brooklyn’s editor Jeremy Smerd assistant managing editors Erik Engquist, Jeanhee Kim, Robin D. Schatz creative class is in session web editor Amanda Fung art director Carolyn McClain MPLOYMENT IN THE INFORMATION INDUSTRY, which photographer Buck Ennis senior reporters Joe Anuta, Aaron Elstein, includes film and TV production, media and software Matthew Flamm, Daniel Geiger reporters Rosa Goldensohn, design, grew by 23% in Brooklyn last year—a gain so Jonathan LaMantia, Caroline Lewis, E Addie Morfoot large that it had borough business leaders checking their math. data reporter Gerald Schifman “People in Brooklyn have been saying these creative jobs, web producer Peter D’Amato columnist Greg David the information jobs and the innovation jobs should be in contributing editors Tom Acitelli, Theresa Agovino, Erik Ipsen, Brooklyn,” said Carlo Scissura, Brooklyn Chamber of Com- Brendan O’Connor, Cara S. Trager merce president and CEO. In 2015, “it just exploded.” ADVERTISING www.crainsnewyork.com/advertise He credited the 1,900-job increase to the borough’s lower- advertising director Irene Bar-Am [email protected] or than-Manhattan costs and high-powered labor force, as well as 212.210.0133 a state film and television tax credit, which is available in all senior account managers Zita Doktor, Jill Bottomley Kunkes, five boroughs. Sound stages Steiner Studios and Broadway Rob Pierce, Stuart Smilowitz, Debora Stein IT’S TIME: Inside senior marketing coordinator Stages have been game changers for the sector in Brooklyn. the media giant’s LeAnn Richardson Media companies including VICE, located in Williamsburg, Sunset Park sales/events coordinator Ashlee Schuppius warehouse office 212.210.0282, and Time Inc., with 55,000 square feet of offices in Sunset [email protected] ONLINE Park’s Industry City, also helped drive the growth, which was general manager Rosemary Maggiore revealed in a report by the chamber and real estate services firm Washington Square Partners. 212.210.0237 [email protected] Steiner’s chairman, Doug Steiner, called the borough “home of the creative class.” His waterfront location near CUSTOM CONTENT director of custom content hip areas such as Williamsburg and Dumbo attracts productions nationwide. “We have, in essence, an L.A. lot in Patty Oppenheimer 212.210.0711 the middle of New York City,” he said. Steiner is building six more sound stages at its Brooklyn Navy Yard home, [email protected] multicultural sales manager Giovanni Perla which opened in 2004 and expanded in 2012. [email protected] senior custom marketing manager Brooklyn added 30,000 private-sector jobs in 2015, up 5.6% versus 3.2% citywide. Health care and social ser- Sonia David, [email protected] vices account for the most in the borough, roughly 178,400, followed by tourism. The new information jobswent EVENTS www.crainsnewyork.com/events to people with college or advanced degrees, while the borough’s manufacturers have struggled to fill entry-level director of conferences & events Courtney Williams, 212.210.0257 positions. “It shows that we have work to do,” Scissura said. — ROSA GOLDENSOHN AND ADDIE MORFOOT [email protected] manager of conferences & events Adrienne Yee AUDIENCE DEVELOPMENT New look for bridges and tunnels Big move for big pharma director of audience & content DATA POINT partnership development Gov. Andrew Cuomo unveiled plans Pfizer will be leaving its longtime head- THE CENTER FOR AN URBAN FUTURE Michael O’Connor, 212.210.0738 for sweeping updates to the city’s net- quarters in midtown Manhattan. The [email protected] work of bridges and tunnels, includ- REPORTS THAT IMMIGRANTS MAKE drugmaker plans to sell its two build- CRAIN’S 5BOROS www.5boros.com ing LED lighting, fully automated toll UP 70% OF CITY EMPLOYEES IN ings on East 42nd Street and Second Irene Bar-Am, 212.210.0133 booths and driver facial recognition Avenue by the end of 2017. The com- [email protected] cameras to help beef up antiterrorism 37 OCCUPATIONS, INCLUDING pany has been in its current home since REPRINTS protections. The first wave of updates is 1961. It plans to lease instead of own reprint account executive Krista Bora MEDICAL AIDES (76%) AND 212.210.0750 scheduled to begin in January. the space for its next headquarters. PRODUCTION GARMENT WORKERS (96%) production and pre-press director Low ratings force NFL giveaway Cool kids on the corner Simone Pryce media services manager Nicole Spell TV networks will be giving away more The intersection of 67th Avenue and SUBSCRIPTION CUSTOMER SERVICE ad space during NFL broadcasts after included the addition of a dormitory, 110th Street in Queens will be renamed www.crainsnewyork.com/subscribe ratings suffered a rare decline through programs in jazz and historical perfor- Ramones Way later this month in honor [email protected] the season’s first four weeks. Viewer- mance and a satellite campus in of the punk pioneers, who all attended 877-824-9379 (in the U.S. and Canada). $3.00 a copy for the print edition; or $99.95 ship among 18- to 49-year-olds fell Tianjin, China. nearby Forest Hills High School. one year, $179.95 two years, for print by more than 10% in September, the subscriptions with digital access. to contact the newsroom: biggest decline in a decade, because of Fighting stock www.crainsnewyork.com/staff weak matchups and competition from Alliance MMA became the first mixed 685 Third Ave., New York, NY 10017-4024 the first presidential debate. martial arts company to be listed on a phone: 212-210-0100 fax: 212-210-0799 U.S. stock exchange, with shares open- Entire contents ©copyright 2016 Crain Communications Inc. All rights MF Global settlement likely ing at $4.50 on the Nasdaq. The com- reserved. ©CityBusiness is a registered Jon Corzine and federal regulators are pany is looking to raise $10 million in trademark of MCP Inc., used under license agreement. close to a deal that would settle a 2013 capital to create a nationwide develop- CRAIN COMMUNICATIONS INC. lawsuit over the collapse of his invest- mental league to serve the sport’s pro- BOARD OF DIRECTORS ment firm, MF Global, and its alleged fessional division, the UFC, which was chairman Keith E. Crain misuse of $1 billion in client money. The bought by private equity investors in president Rance Crain treasurer Mary Kay Crain, Cindi Crain settlement would allow the former New July for $4 billion. senior executive vp, William Morrow Jersey governor and senator to avoid a executive vp, director of strategic trial in federal court in Manhattan. Grocer heading downtown operations Chris Crain Lady Liberty’s new neighbor executive vp, director of corporate Trader Joe’s is coming to the Lower East operations K.C. Crain Search begins for new Juilliard president Side with a new location at the foot of Designs for the new Statue of senior vp, group publisher David Klein Liberty Museum were unveiled vp/production, manufacturing David Kamis Joseph Polisi announced last week that the Williamsburg Bridge. The grocery chief financial officer Bob Recchia he will be stepping down as president is set to come online in 2018 as part of last week. The 26,000-square-foot chief information officer Anthony DiPonio of Juilliard in June 2018 after more than an urban renewal project called Essex facility is scheduled to open in founder G.D. Crain Jr. [1885-1973] three decades at the helm of the world’s Crossing, which was approved in the 2019 and will feature monumental chairman Mrs. G.D. Crain Jr. [1911-1996] secretary Merrilee Crain [1942-2012] most prestigious performing arts con- waning days of the Bloomberg admin- views and a grass roof intended as servatory. The school’s longest-serving istration and spans eight blocks along a habitat for migratory birds.

MATTHEW FLAMM, STATUE OF LIBERTY-ELLIS ISLAND FOUNDATION FLAMM, STATUE MATTHEW president presided over changes that Delancey Street.

6 | CRAIN’S NEW YORK BUSINESS | October 10, 2016

P006_CN_20161010.indd 6 10/7/16 8:14 PM AGENDA HEALTH CARE

Oscar’s shrinking NY footprint includes moving jobs to Arizona The health insurer will lay off local customer-service workers BY JONATHAN LAMANTIA

FOUNDERS GO ealth insur- in San Francisco on Jan. 1. Health System, Monte- pull out of Dallas and WEST: Oscar’s Kevin Nazemi, ance startup In July, the insurer fiore Health System and New Jersey, where its Josh Kushner Oscar is ex- said it would reduce its the Long Island Health broader network made it and Mario panding out New York network in Network, a coalition of more difficult to coordi- Schlosser look to shave costs. HWest and cutting New 2017 by working exclu- 10 hospitals. Then in Au- nate care T:7.625”and keep mem- York jobs—at the same sively with Mount Sinai gust, Oscar said it would bers’ medical costs low. n time it’s slashing its New York network in half next year. Oscar said last week it is laying off 31 workers from its member- services team in Man- hattan and creating new positions in its customer-service division in Tempe, Arizona. The layoffs were scheduled for Dec. 31 or the following two weeks, according to a filing with the state Department of Labor. “This move allows us to meaning- fully extend our operations beyond NYC as we transition our customer experience into a new model, called Oscar Concierge,” an Oscar spokeswoman said. The model for Oscar Con- cierge includes assigning to each plan member a four-person team made up of one nurse and

three member-services T:9.875” staffers who will handle all of that member’s contact with the insurer. The company has raised $728.5 million from investors, including a $400 million round from Fidelity Invest- ments in February 2016. Oscar lost a com- bined $83 million in New York, Texas and California in the first half of 2016 and has tightened its purse strings to improve its financial situation. Oscar announced its plans to open a Tempe office in June and hire 200 employees, citing the MAXIMIZING ENERGY EFFICIENCY STARTS WITH GIVING attractions of “a skilled workforce, high quality YOUR LIGHTING SYSTEM A TUNE-UP. of life and pro-business climate.” The insurer doesn’t sell insurance in Outdated technology can have a hidden impact on your bottom line. Con Edison’s Small Business Program can help you Arizona currently, but it use less energy and save money immediately, all without disrupting your business. We also offer incentives of up to 70% does have customers in of the cost of upgrading to the latest lighting and refrigeration technology. Plus, our experts can even advise you on the Los Angeles and Orange latest HVAC technologies. Find out more at ManageEnergy.conEd.com/SmallBusiness. Your profit margin will thank you. County, California. The company also plans to

BUCK ENNIS begin providing coverage

October 10, 2016 | CRAIN’S NEW YORK BUSINESS | 7

1 06662_CON_7p625x9p875_m1c.indd P007_CN_20161010.indd 7 10/7/16 5:45 PM Saved at 8-25-2016 9:55 AM from MS-208-CKATZ by Charlie Katz / Timothy Cozzi Printed At None

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Inks Cyan, Magenta, Yellow, Black AGENDA FOOD

Venture capital invests in a different kind of chipmaker Culinary companies are getting tech-like attention BY CARA EISENPRESS

ew York venture capital fund AccelFoods AccelFoods typically puts any- Bridge Ventures, a rm that has food has invested in six healthy packaged-food where from $50,000 to $2 mil- startups Ample Hills and Hungry startups—four based in the city—as part lion directly into its early-growth Root in its portfolio. “You don’t have of a surge in backing for edgling food companies and introduces them to be a 500-million-strong social net- Nand beverage businesses that’s signaling a change in to co-investors who might con- work before you get to revenue.” the way culinary companies grow up in the Big Apple. tribute even more. Well-funded food companies also “ e measure of success is not pro tability but the With consumer demand for get to bypass the hiccups that befall growth they’re achieving in a short amount of time,” natural, healthful fare soaring, other early-stage rms, like pro- said Jordan Gaspar, AccelFoods’ managing partner mainstream retailers and restau- duction roadblocks when demand and cofounder. An ethos that has been more applica- rants are eager to stock foods such increases or distribution deals that ble to tech startups is now being used to evaluate mak- as the vegetable-stu ed frozen need to be negotiated store by store. ers of rice cakes, healthy potato chips and kids’ meals. meals made by Kidfresh, a mid- Element Snacks this year raised Specialty food companies have historically started town company that AccelFoods $1 million from AccelFoods, and with a dream and a recipe. Growth usually came just added to its portfolio. Kid- now it has national distribution, with slowly, Gaspar said. fresh already has revenue in the 350 stores in the New York metro- Now, as food giants outside the city, like General $10 million range and is stocked politan area alone—the kind of large Mills and Hain Celestial Group, go on a spending in 9,000 freezer cases nationwide. presence that can shepherd in the spree acquiring young brands, New York City food Kidfresh had previously raised rapid growth investors hope to see. company founders and their investors have a shot at capital from family and friends “We went from knocking on fast growth in hopes of quickly selling the business for and from Emil Capital Partners doors in NYC saying, ‘Hey, Citarella, a huge sum. of Greenwich, Connecticut. e will you carry our snacks?’ to being a Since 2012, venture capital rms have put $315 new cash will help boost market- national brand,” said Nadia Leonelli, million into New York City food startups, according and expand the line to breakfast and side dishes, the founder. Revenue tripled in 2015 and has doubled ing to CB Insights—though half of that went to Vita said Matt Cohen, Kidfresh’s founder. again in 2016, she said. Coco coconut water. e in ux of venture capital has Although the AccelFoods investments are smaller Even so, “we’re very much scrappy,” Leonelli said. attracted a di erent type of cook to the kitchen. “ e than the kind made by VCs pouring money into tech- “We’re in the world of CPG [consumer packaged founders are young entrepreneurs who might have nology companies, the cash can stretch in this category. goods], and you have to buy your shelf space. Money done technology or science,” Gaspar said. “ ey’re “With a consumer products company you can be closer goes fast. You have to spend the least amount possible increasing the bar in terms of talent, and that talent is to pro tability and have more control over your nan- but still be smart and invest in yourself. We get the raising huge amounts of money.” cials,” said Charlie O’Donnell, founder of Brooklyn value of making an exit,” she said, “but we’re looking to work with our brand for a long period.” Despite the big promises of funding, not everyone wants the dough. “I'll get an email a couple times a week from VC groups shing for opportunities, prom- ising me the world, an exit,” said Shamus Jones, the founder of Brooklyn Brine, a pickle-and-condiment We’re All About You company with close to $5 million in revenue. He has raised only a small amount of investment and recently committed to controlling growth at about 20% a year, instead of expanding exponentially. “ ey want to give us a couple million to listen to them, and to change against our reason for being,” he said. I LITTLE BITES

THE FOUR NEW YORK CITY–BASED addi- tions to AccelFoods’ portfolio have health at their core. MANSI brings to market juice made from a little-known, good-for-you citrus fruit. NEW POP is skinless popcorn popped without Grassi & Co., the 70th largest firm in the U.S., fat or salt and avored with cinnamon or hot pepper. is a premier professional service organization BRAMI sells packaged pickled lupine beans—an specializing in accounting, auditing, tax, technology, ancient Roman snack high in ber and protein. and business consulting services. Grassi & Co. KIDFRESH frozen meals are meant to be affordable, available and appealing to children, has offices in Manhattan, Long Island and who likely won’t notice the disguised squash or Rockland County, NY as well as internationally cauli ower in their tater tots. The nutritious bottom line isn’t coincidental. through its association with Moore Stephens The partners at AccelFoods International. don’t look for nourishing products just because they might deliver nancially; they 488 Madison Avenue want to eat the stuff too. “This New York, NY 10022 is a way to make sure that www.grassicpas.com great products get put on the (212) 661-6166 shelves,” Gaspar said. COURTESY OF ACCELFOODS

8 | CRAIN’S NEW YORK BUSINESS | OCTOBER 10, 2016

P008_CN_20161010.indd 8 10/7/16 8:22 PM

AGENDA ASKED & ANSWERED NONPROFITS INTERVIEW BY CATHERINE FREDMAN

DOUGLAS BLONSKY CENTRAL PARK CONSERVANCY

s head of the nonprofit organization that manages It looks so natural Central Park’s 843 acres, Douglas Blonsky over- but it’s entirely sees everything from daily maintenance to massive “ man-made— restoration projects and even the design of the new Arat-proof garbage cans. In Blonsky’s 31 years with the group, our version of the conservancy has invested more than $800 million in Central Disney World Park, transforming it from crime-ridden pariah to the most visited urban park in the United States. With its success comes controversy, as some activists think the conservancy should share its funds with poorer parks.

The conservancy has been called a model for urban park management. In what way is this true? In the late 1970s and early ’80s, Central Park was considered one of the most dangerous and dirtiest parks in the world. The conservancy was the first organization of its kind to raise private dollars and bring in strong management to change that. Now every major city park has some kind of conservancy or friends group, and every one has been modeled on what we’ve done.

The park’s annual budget is $67 million, and the conservancy raises 75% of that. Is private funding the future of public spaces? Private funding is a great way for people to get involved in the DOSSIER park and get their voices heard. But volunteering is equally important. In our first 10 years, we didn’t raise a lot of money. We WHO HE IS President and did a lot of innovative things that didn’t cost a lot. chief executive, Central Park Conservancy Public-private partnerships have been the salvation of many urban parks. SALARY $717,055 Do they work for all or only those surrounded by prosperous neighbors? AGE 57 It’s true that 70% [of the money we raise] comes from individuals BORN New Brunswick, New Jersey who live around the park. But I’ve seen other conservancies or RESIDES Upper East Side friends groups that are creative in harnessing the volunteer community or in getting government money. EDUCATION: B.S. in plant science and landscape architecture, What are the drawbacks of the public-private partnership model? University of Delaware and Cook College at Rutgers University The success of a public-private partnership is that it’s a partnership. The bottom line is that it’s still the city’s park, and you’re SOWING THE SEEDS Blonsky taking care of it for the City of New York. They set the policy. is especially proud of creating the zone-management system in the park. By dividing the park into After John Paulson’s $100 million donation in 2012, Bill de Blasio 49 zones, each with a dedicated proposed sharing the wealth with other parks. Is that likely to happen? gardener in charge of a crew of The mayor never really put it out there as a strong proposal. That assistants and volunteers, he said, was a discussion to get people thinking. “we brought accountability down to the landscape size.” What’s the best way to help city parks that don’t have as many resources? WALKABOUT He walks We’ve been helping parks in underserved neighborhoods for 20 through the park every morning years. Four years ago, we formally created the Central Park Insti- and at least once again during tute for Urban Parks to share best practices in all five boroughs. the day. “I like to watch people Our crews work alongside their gardeners. We teach everything using the park,” Blonsky said. from fundraising to how to grow turf in urban parks. “It’s great to give directions to tourists.”

Is there a danger today of visitors loving our park to death? PUBLIC-PRIVATE OASIS “I Who can believe we had 12 million visitors in 1980 and now we’re love the park in the winter, when

it’s dark and there are no leaves BUCK ENNIS up to 43 million? More and more people are moving to the city, so on the trees. It’s a little time our parks will be under a lot of stress. Looking to the future, we’re when I feel like it’s mine. That creating a sustainability model with the Forever Green capital lasts a week or two, and then campaign. We’re trying to make sure the park will never fall again. I have to share the rest of the year.” What surprising thing could you tell New Yorkers about the park? Not many people understand how fragile the park is. It looks so natural, but it’s entirely man-made—our version of Disney World but with an environmental slant. n

10 | CRAIN’S NEW YORK BUSINESS | October 10, 2016

P010_CN_20161010.indd 10 10/7/16 3:12 PM FEATURED CLOSING THE ASPEN I 1955 FIRST AVENUE, NEW YORK, NY

Ariel Property Advisors has recently sold an eight story, 250,090 square foot elevatored mixed-use building in an area of Manhattan widely considered an extension of the Upper East Side JULY 2016 I $103,000,000

Investment Sales arielpa.nyc Capital Services Investment Research AGENDA WHO OWNS THE BLOCK

Trust invests in Coney Island Neighborhood’s development uptick includes a city-backed amphitheater, a supportive-housing project and a former Trump property FORD AMPHITHEATER

BY TOM ACITELLI

new amphiteater and 135 units of affordable housing represent two 2009 MERMAID AVE. 1709 SURF AVE. different land uses along a single The Hennessey Heights Funeral Home Coney Island block that have one of Hasbrouck Heights, N.J., bought Taconic Investment Partners bought the Athing in common: iStar, a real estate investment the 5,440-square-foot funeral home nearly two-block-long parking lot in June and memorial chapel here—and its trust that is behind both. 2005 for $7.75 million and put the parcel adjacent parking lot—for $750,000 in on the market in summer 2014 for an un- This summer Manhattan-based iStar— August 2008. disclosed price; it has yet to sell. with the nonprofit organization Coney Island USA—completed the development of a 5,000- seat amphitheater, carved in part from the 2920 W. 21ST ST. landmark Childs restaurant building. It was 1301 SURF AVE. christened the Ford Amphitheater at Coney The New York City Housing Partnership, a conduit PYE Properties, a limited-liability Island Boardwalk in June. The city, after buying between the city and private developers for building company in Coney Island con- and maintaining workforce housing, bought the pair of the land from iStar, leased it back to iStar for trolled by Pyotr Yadgarov, acquired 12-story buildings in June for $27.4 million. The build- the 110-year-old Shore Theater 10 years. ings have 224 apartments. As of July 1, the apartments building in December for $14 mil- Meanwhile, in September, iStar sold a nearby are covered under the Rental Assistance Demonstra- lion. The long-vacant seven-story, tion, a four-year-old federal program that keeps rents parcel, at 3003 W. 21st St., for $8.3 million to 115,667-square-foot property was at no more than 30% of tenants’ income. The Housing damaged by Superstorm Sandy in two Long Island developers, Concern for Inde- Partnership granted Starrett Corp., a private developer, 2012. In July, PYE unveiled plans pendent Living and Georgica Green Ventures. a beneficial interest in the buildings this summer. In to restore the theater and convert exchange, Starrett agreed to maintain the apartments The companies have begun building a sup- the remaining space into a hotel in the rental assistance program for 20 years. with retail space, though work has portive-housing project featuring 82 units for not yet started. homeless veterans, with the remainder going to households earning less than 60% of the area’s median income of $86,300 for a 3003 W. 29ST ST. family of four. The $4.88 billion iStar portfolio SentosaCare, New York state’s largest network of includes $407 million in financing for nursing homes, bought this 20 Times Square’s redevelopment. The seven-story nursing home trust was spun off from Barry Stern- and rehabilitation center in December 2014 for licht’s Starwood Capital Group in 1997 $32 million from the Shore- and saw its stock drop to around $1 front Jewish Geriatric Center. per share after the 2008 market crash. SentosaCare is led by business partners Ben Philipson It trades today around $10. The focus and Benjamin Landa. on Coney Island is important enough 1607 SURF AVE. to the company to garner a couple of Robert Trump, Donald Trump’s younger brother, sentences in a recent securities filing in which sold the 47,643-square-foot parking lot that it called the amphitheater “an integral part of their father, Fred Trump Sr., once owned for the company’s future plans at Coney Island, $4.13 million in April 2005. The buyer, Taconic Investment Partners, plans to build a residential where it owns an additional four acres of 3052 W. 21ST ST. and retail project on the site. developable land.” iStar—in a joint venture with Coney Island Those plans are likely to include Concern USA, a nonprofit cultural organization— for Independent Living and Georgica Green renovated the historic Childs restaurant building and developed an adjacent lot Ventures. The companies hope to eventually into a 5,000-seat amphitheater. The city build as many as 400 affordable, supportive had owned some of the land and pur- 3003 W. 21ST ST. and market-rate apartments on the same block chased the remainder from iStar for a reported $16.1 million, then leased the between Surf Avenue and the Boardwalk, and Concern for Independent Living and Georgica Green Ven- site back to iStar and Coney Island USA, tures bought the parcel running from Surf Avenue to the West 20th and West 21st streets. The block which subleased the venue’s operations Boardwalk, and West 20th Street to West 21st Street, could end up with six additional buildings on to concert promoter Live Nation. The Tri- in late September for $8.3 million. The seller was iStar, State Ford Dealers Association acquired parcels all owned—for now—by iStar. n which still owns the six other developable parcels on the naming rights before the amphitheater block that could host additional buildings. Previously, opened this summer. iStar had acquired the block from Taconic Investment Partners when Taconic defaulted on a loan. WWW.OASIS.NET, VIVIDSEATS.COM WWW.OASIS.NET,

12 | CRAIN’S NEW YORK BUSINESS | October 10, 2016

P012_CN_20161003.indd 12 10/7/16 3:14 PM REAL ESTATE

Lower Manhattan landlords missing out on $175 million in retail opportunities Report says lack of options drives free-spending residents to other areas BY JOE ANUTA

ower Man- commercial market that than the rest of Manhat- Even after a tax subsidy continued to grow. With lords. “There are opportu- hattan is full has not seen the same tan, according to com- that rewarded landlords retail leases commanding nities to keep more spend- of young New growth as other business mercial brokerage firm who converted commer- rents many times greater ing in lower Manhattan,” Yorkers looking hubs. Before 9/11, aver- Cushman & Wakefield. cial space to residential than commercial space, the alliance wrote, calling Lto part with substantial age asking rents in the Today they are nearly expired in 2006, the resi- catering to that demand on landlords to add space amounts of disposable district were 16% lower 25% lower. dential population has could be a boon for land- for more restaurants. n income, a report released Monday by the Downtown Alliance concludes, findings the development-advocacy group hopes will spur neighborhood landlords to allocate more space for restaurants, bars and entertainment. Sixty percent of apartments in the Fi- nancial District, Battery Park City and South Street Seaport are occu- pied by single tenants, Bridge the gap nonrelated roommates or unmarried couples between competitive pricing who don’t have to spend cash on child care. That’s one of the highest rates and the stability you need. in the city. “With strong buying power and plenti- It’s time to switch to Oxford. ful leisure spending, this key demographic can increasingly drive Lower Manhattan’s rapidly transforming retail and dining scene,” the alliance wrote. The report high- lights the growing residential sector south of Chambers Street. Mea- sured in square footage, lower Manhattan is still roughly three-quarters commercial, but the number of area apartments has more than doubled since 2000. With Oxford, you get the choices you’re looking for—with health plans you’ll prefer, prices you’ll The alliance’s survey re- like and the peace of mind that comes from working with a market leader. And now your business vealed that young pro- can take advantage of new lower rates on many Oxford plans across all three of our networks. fessionals—which the organization defined as Explore Oxford and experience the advantages of working with a local carrier that has spent 18- to 44-year-olds—go the last 30 years serving businesses like yours. out for food, drinks or entertainment about every other night on aver- New, lower-cost age, and spend around Freedom Network Liberty Network $1,000 per month. That Metro Network adds up to $356 million a year, more than half of which is spent outside the district for want Find out why many businesses are switching to Oxford. of appealing options, It’s time the report found. to switch. Call your broker or visit uhc.com/OxfordNY today. Diversifying the building stock to make lower Manhattan more of a 24/7 neighborhood 1059735.0 8/16 Oxford insurance products are underwritten by Oxford Health Insurance, Inc. is part of a long-running Oxford Health Plans LLC. All rights reserved. 16-2438 NY-16-407 effort to bolster a

October 10, 2016 | CRAIN’S NEW YORK BUSINESS | 13

P013_CN_20161010.indd 13 10/7/16 5:11 PM AGENDA REAL ESTATE

LAST AIR RIGHTS: Churches like St. TechShop to run maker space Patrick’s Cathedral want to sell air rights Advanced manufacturing center to open by mid-2017 to help pay for their landmark buildings’ upkeep he city’s Economic Development Corp. last week selected TechShop to run the T15,000-square-foot advanced manufacturing center slated for the Brooklyn Army Terminal in Sunset Park. TechShop, based in San Jose, California, operates shared manufacturing spaces in a dozen cities around the world. The Brooklyn center is part of the de Blasio administration’s Futureworks NYC program, which is designed to increase the number of industry and manufacturing ting-edge manufacturing tools that jobs in the five boroughs. According to will be available to firms at affordable the city, the center will create more than prices, officials say. 500 jobs in its first five years, attract TechShop, which expects to open $200 million in investment and spawn the center by mid-2017, had been try- more than 200 businesses. ing to find an ideal location in Brooklyn “This advanced manufacturing cen- since 2012, according to the news site ter is the linchpin of our Futureworks TechCrunch. The outpost is TechShop’s initiatives, and we couldn’t be more first in New York City. excited that TechShop is bringing their Founded in 2006, TechShop de- global experience and expertise to scribes itself as a membership-based make sure it’s a tremendous success,” do-it-yourself workshop and fabrica- Churches and developers Mayor Bill de Blasio said in a statement. tion studio that gives entrepreneurs ac- The facility in the Brooklyn Army cess to more than $1 million worth of oppose city’s air-rights plan Terminal will be outfitted with cut- tools and software. — JOE ANUTA

Buyers and sellers worry price floor would hurt sales BY JOE ANUTA Fuse Media moves its HQ eligious organizations have joined with developers to oppose the city’s intention to set a minimum price for air rights in midtown east. The air New space at One Penn Plaza helps Vornado fill hole rights would be bought by developers from existing land owners and used to build taller office towers if the city goes through with its plan to he cable television network Rrezone the neighborhood. Fuse Media is relocating The city wants to enforce a price floor because it stands to gain as much as 40% its headquarters to another of the sale of air rights. It can use the money to improve streets and sidewalks as building in the neighborhood part of the proposed rezoning of the 78 blocks around Grand Central Terminal. Tsurrounding Penn Station. Already there are concerns that allowing building owners to sell their air rights The company is moving from 11 will create a glut that will depress prices. Developers would like to pay as little as Penn Plaza to nearby One Penn Plaza, possible, but the city wants to make sure it doesn’t allow redevelopment to happen where it signed a lease for 27,000 square without getting funds for upgrades. feet on a portion of the 57-story build- “The floor price is a tool that ensures a minimum contribution will be made to ing’s 10th floor. Both properties are east midtown’s public-realm improvement fund as part of each development-rights owned by Vornado Realty Trust. Rent transfer,” a spokeswoman for the Department of City Planning said. starts at $67 per square foot and rises But even religious organizations in the neighborhood, such as Central Syna- during the life of the 10-year deal to $72 gogue on Lexington Avenue, oppose the floor. They want to get the highest price per square foot. they could in order to fund needed repairs to their landmarked buildings, but they John Ryan, a broker at Avison Young, worry that for small deals or if the market softens, the minimum amount might be represented Fuse in the lease. Vornado higher than the going rate, in which case developers wouldn’t buy. Fewer transac- was represented by an in-house leasing tions also would mean less money in the public-improvement fund. team led by Glen Weiss, an executive at “We expect the proposed floor price to have the effect of decreasing funding the company. available for public-realm improvements and stifling the very redevelopment Fuse was pushed out of nearby 11 that the city is seeking to facilitate,” the Archdiocese of New York, which owns Penn Plaza because of a large lease St. Patrick’s Cathedral on Fifth Avenue, said in testimony delivered at a public signed there by another television a deal that allowed MSG to maintain a hearing in late September. The minimum price is set to be adjusted for new mar- company, AMC Networks, two years 15% stake in the company. The network ket conditions every five years, unless a property owner funds a new air-rights ago. In that deal, AMC renewed its focuses on content geared toward an appraisal of the rezoned neighborhood and brings it to the city. lease for roughly 290,000 square feet English-speaking Hispanic audience. City Councilman Dan Garodnick, who represents the area, said that a floor of space it already occupies at the 23- Fuse’s lease at One Penn Pla- price is needed not only to ensure that public improvements come along with the story building and added 40,000 square za is helping Vornado fill a large increased density but also to prevent buyers or sellers from finding loopholes to feet, half of which included Fuse’s vacancy opened at the 2.6 million- contribute less. offices. AMC will take over the space square-foot tower. U.S. Customs and “The public needs certainty about public-realm and transit improvements when Fuse vacates. Border Protection recently vacated about coming to east midtown, and a floor can help to ensure that there is a minimum Last year, SiTV Media Inc. acquired 150,000 square feet at the property for contribution for all transfers and to avoid the gaming of the system at the expense a majority interest in Fuse from Madi- One World Trade Center in lower

BUCK ENNIS, TECHSHOP of the public good,” Garodnick said in a statement. n son Square Garden for $226 million in Manhattan. — DANIEL GEIGER

14 | CRAIN’S NEW YORK BUSINESS | October 10, 2016

P014_CN_20161010.indd 14 10/7/16 5:12 PM AGENDA VIEWPOINTS

Obamacare in New York: How is this better? The Affordable Care Act is not working for this sole proprietor

AFTER LISTENING to As a lifelong Demo- ever by the New York (A) hire a 20-hour-per- offers comprehensive Is this what ACA and speakers during this crat, I was first deceived State of Health Market- week employee (whom health plans (like those Cuomo had in mind to presidential campaign by our president’s “You place. My options for I don’t need) in order to our elected officials encourage entrepreneurs extol the virtues of the can keep your doctor” regaining the compre- qualify as a small business; still enjoy); or (C) marry in New York? Affordable Care Act, I promise and am now hensive benefits I (B) close my business and someone with better DEB STEVENS feel compelled to write more discouraged than had prior to ACA are: find a large employer that benefits. Upper East Side that, as a sole proprietor in New York, our health insurance options are abysmal. While some premiums decreased from pre-ACA plans, the networks and coverage are drastically reduced. Memorial Sloan Kettering is not included in a single plan TAKE YOUR on the state’s insurance exchange. How would Gov. Andrew Cuomo have felt if Sandra Lee CAREER were relegated to his prized New York State of Health Marketplace TO NEW and therefore could not have accessed Memorial Sloan Kettering for her HEIGHTS cancer treatment? The ACA changed the definition of “small business” to exclude sole proprietors so we no longer enjoy the same options as other small businesses, despite our ability to pay the premiums. Many states with health insurance exchanges provide plan options that include out-of-network benefits—but not New York. Here, we are relegated to plans with only in-network options, not one of which includes the best cancer Nearly 1,500 Career Advancement Courses in More Than 30 Topics hospital in the world. Between the fed- Business and career opportunities in NYC and around the world are growing and changing. eral law and Cuomo’s How will you keep up? In as little as one semester, gain the specialized skills to progress in heavy-handed response your current role or in a new job. This fall, enroll in a Career Advancement Course through in New York, the ACA NYUSPS Professional Pathways. Learn practical skills from top industry leaders as you focus actively impedes entrepreneurs. Health care your expertise, expand your knowledge, build your résumé, and prepare for success. coverage has become the top concern of the There’s Still Time to Register for Fall would-be freelancers and sole proprietors I Visit sps.nyu.edu/careeradvancement04 or call 212-998-7150 speak with, yet responses from our members of Congress reveal a pro- found lack of knowledge about the mechanics of the legislation—and no

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NYUSPS Office of Strategic Marketing and Communications Job Number: a1617-0030 Pub/Issue Date: CrainsNY 10/10/16October 10, 2016 | CRAIN’S NEW YORK BUSINESS | 15 Product: CA General -Last Chance Date: 9/30/16 Size: 7.625 x 9.875” Artist: pw Bleed:.125 Proof #: 3 MODEL C Color/Space: 4C

P015_CN_20161010.indd 15 10/7/16 4:44 PM AGENDA VIEWPOINTS

BlackRock’s relocation would shake city’s office market and policymakers The far West Side is Midtown east, downtown struggling to compete with far West Side now the go-to location for companies that

WHENEVER BLACKROCK 2 World Trade Center tower. In Jan- Here’s what the BlackRock story want to make clear speaks, the markets uary, Fox and News Corp. similarly tells us about the city’s three major they are the best in quake. When Black- backed out of an almost-completed office districts: Rock picks a location deal to move to the building, which ● Downtown continues to struggle to their business for its headquarters, offers low rents through large city sub- lure the high-profile, big-name tenants the city’s office market sidies. it needs to fill the new skyscrapers at will tremble. And the Now BlackRock is eye- the World Trade Center The de Blasio administration did de Blasio administra- ing the far West Side. It could site. Whether it can do so green-light the SL Green Tower oppo- GREG DAVID tion could find itself relocate to Hudson Yards, the remains an open question, site Grand Central Terminal in a nifty under an unwelcome great legacy of the Bloomberg especially if the city’s econ- deal that produced at least $220 million spotlight. administration, or to a tower omy weakens. in improvements at the transit hub. But 66.5AVERAGE AGE of ● Consider this a tale of the city’s three that Tishman Speyer is plan- The far West Side is estab- one building won’t solve the problem. most important office markets. ning one block north. It would midtown east lished as the go-to location The latest de Blasio proposal seems BlackRock—one of the world’s larg- be in good company at either office buildings for successful companies to have broader support, possibly est money managers—occupies two location, as Hudson Yards’ that want to make it clear because it is forgoing money for tran- buildings just off Park Avenue, once the developer, the Related Cos., they are the best in their sit improvements to instead help the most prestigious address in midtown. has lured a list of well-known names: business. Its future seems secure. landmark churches in the area sell their But employers including Citigroup and Coach, Milbank Tweed, KKR, SAP and ● Midtown east is in danger of see- air rights—a decision made to neu- Major League Baseball have been leav- Time Warner, to name a few. They are ing its tenants slip away unless the de tralize a potential opponent. But it has ing midtown east because the buildings moving into the most modern office Blasio administration can finally push been three years since the Bloomberg there are old—66 ½ years, on average— space anywhere, helped by significant through a rezoning to allow a handful midtown east effort crashed. Time is and outmoded for the way large corpo- tax breaks. of new office buildings and modern- a-wasting for the help the area needs. n rations configure their operations. Although BlackRock might stay in ization of old ones—something the BlackRock considered and then midtown, as Fox and News Corp. did, Bloomberg administration failed at GREG DAVID blogs regularly at ruled out anchoring Larry Silverstein’s the odds of a move seem good. three years ago. CrainsNewYork.com.

The wrong step for sensible health care The governor should veto a bill that removes controls on prescription-drug costs BY PAUL F. MACIELAK

ov. Andrew Cuomo will would have us believe that doctors’ soon be faced with a deci- prescribing decisions are always based sion to sign or veto leg- on what is therapeutically best for islation that would limit each patient. In reality, prescribing Ghealth plans’ use of step-therapy poli- decisions are often influenced by phar- cies, which promote consumer access maceutical manufacturers’ incentives, to proven effective drugs while keep- which frequently result in patients ing their out-of-pocket costs for those receiving new drugs over equally drugs as low as possible. The policies effective generics. limit the use of some expensive medica- From 2013 through 2015, more than tions before an appropriate lower-cost 52,000 doctors in New York received or lower-risk alternative, such as a nearly $290 million from various phar- generic, is tried. maceutical companies for consulting Advocates of the bill say they and payments associated with research, and efficacy of new and existing drug ket might need to be pulled later on want a clear and concise process for according to the Centers for Medicare therapies. Those committees are far because of adverse effects. patients and providers to override the and Medicaid Services’ Open Pay- more up to date on emerging drugs Step therapy can act as a safeguard step-therapy protocol. But that already ments data. Therefore, there is legiti- and the latest research on potential to ensure that clinically appropriate exists. In disputes about which treat- mate concern that the best interest of dangers of certain medicines than are regimens are covered and to curtail ment is truly best for a given patient, the patient might too often be subject individual doctors. abusive prescription utilization. Of there are federally mandated exception to which drugs a doctor is being paid Additionally, the protocols for course, programs such as step therapy procedures that can and do override to promote. reviewing and determining prescrip- often do help with much-needed cost the step-therapy policies in New York. Contrary to bill supporters’ asser- tion exceptions are handled by physi- reduction on ever-rising drug prices. The bill before the governor, how- tions that insurance bureaucrats with cians, not untrained bureaucrats. With spending on prescription drugs ever, would undermine policies that limited medical knowledge make pre- While it is all too easy to point a fin- in 2014 increasing by more than 12%, seek to ensure the decision process scribing decisions, every health plan ger at insurance companies and claim cost is also a concern—and it should be is fair and balanced, and instead give has a pharmacy and therapeutics com- they are concerned only about cost, for consumers too. n prescribers unchecked authority to mittee composed of trained health ensuring quality and safety for con- determine which drugs are in the best professionals including physicians and sumers is of equal concern. “Newest” Paul F. Macielak is president and interest of the patient, without ade- pharmacists whose job it is to regu- doesn’t necessarily mean “safest,” and CEO of the New York Health Plan quately defining “best interest.” larly review clinical evidence and make documented cases have shown that Association, a trade group that

ISTOCK Moreover, supporters of the bill recommendations regarding the safety heavily promoted drugs rushed to mar- represents insurers.

16 | CRAIN’S NEW YORK BUSINESS | October 10, 2016

P016_CN_20161010.indd 16 10/7/16 5:44 PM fast

NEW YORK’S HIGHEST FLIERS are kissing the sky. This year’s 50 fastest-growing companies in the New York area reflect an economy that has produced record job growth and seen billions of dollars in venture capital, particularly in digital advertising technology— an industry that once again dominates the list. To arrive at our annual ranking we looked at companies with $10 million or more in revenue and measured their three-year growth rate (in two instances, we used a two-year growth rate because the businesses did not have revenue in 2012). Accounting firm Anchin, Block & Anchin assisted us in the financial document review process. Where noted, PrivCo, a financial data provider of privately held companies, gave us revenue estimates. Growth rates are based on actual revenue. The revenue shown0 is rounded off when greater than $1 million. Profitability refers to fiscal year 2015, and employee numbers are as of Dec. 31, 2015. Nearly 90 companies sent us their financial statements or confirmed their revenues to be ranked. Twelve did not. Why? MATTHEW FLAMM EXPLAINS ON PAGE 38.

October 10, 2016 | CRAIN’S NEW YORK BUSINESS | 17

P017_CN_20161010.indd 17 5 10/6/16 8:29 PM JOHN FOLEY: He overcame wary investors with a new concept in home tness.

PELOTON Manufactures stationary bicycles and sells subscriptions to a service that streams spinning classes to tablets LOCATION Chelsea 2013 REVENUE $1,528 2015 REVENUE $43.2 million TWO-YEAR GROWTH RATE 2,829,405% LOCAL EMPLOYEES 120 01 TOTAL EMPLOYEES 180 PROFITABLE? No HOW IT GREW John Foley, a triathlete and father of two small children, thought his idea for a tness business aimed at busy adults would be catnip for investors: Set a 21-inch waterproof tablet on a custom-built exercycle and stream cycling classes all day. Combining the spinning craze with virtual instruction, the concept targeted overstressed parents who don’t have time to get to a gym. Foley had the background to lead Peloton. An industrial engineer, he’d helped run a factory that made 6 million Snickers bars a day, built web pioneer Citysearch and led e-commerce at BarnesandNoble.com. But venture capital rms were slow to bite, so Foley turned to more than 100 angel investors—along with Kickstarter contributors who ordered about $300,000 worth of bikes in 2013. “In our minds we’ve created a new category of product,” Foley said. “Not many [investors] connected the dots.” Attracting capital is easier now. Since its founding in 2012, the Chelsea-based company has raised $120 million, including $75 million last December from private equity rm L Catterton. e money is funding hiring, television marketing and the expansion of showrooms for Peloton’s $2,000 exercycles, which help steer riders to the company’s $39-a-month program- ming subscription. “Peloton is uniquely positioned at cross sections of multiple tness trends,” said L Catter- ton partner Mike Magliacano. Like a cycle freak on a tear, its growth keeps accel- erating. Peloton has sold close to 50,000 bikes, has an on-demand video library of 4,000 classes led by 20 instructors and is adding 12 “rides” a day from its West 23rd Street studio. It’s on pace to double its showrooms to 22 nationwide this year. And a er quadrupling sales in 2015, it expects to grow revenue vefold this year, to more than $200 million. Not bad for a company with zero sales just four years ago (hence, Peloton’s strato- spheric two-year growth rate). An international expansion is also on the horizon, along with a possible IPO. “ e hardest thing is keeping up with demand,” Fo- ley said, adding that the company is just getting started. “Awareness of Peloton nationally is still very low.”

18 | CRAIN’S NEW YORK BUSINESS | OCTOBER 10, 2016

P018_P019_CN_20161010.indd 18 10/6/16 8:31 PM SEARCHMARKETERS.COM DASHBID Uses search-engine optimization to make it easier for companies to be Creates software that helps online in 2013. He assumed the role of chief executive a er publishers get the highest price for resurrecting it from the ashes that same year, con- found on the internet advertisements placed on videos dent there was an opportunity for serious growth. LOCATION Garment district He was right. 2012 REVENUE $88,164 LOCATION Midtown east At the time, most of the investment in the digital 2015 REVENUE 2012 REVENUE $48,382 advertising world was geared toward ad buyers. $17 million 2015 REVENUE $32.4 million Billions of dollars were being spent, according to GROWTH RATE 19,166% GROWTH RATE 66,770% Herman, but little of it on the other side. LOCAL EMPLOYEES 8 LOCAL EMPLOYEES 23 “Publishers were getting their clocks cleaned,” 03 TOTAL EMPLOYEES 15 he said. TOTAL EMPLOYEES 35 PROFITABLE? Yes To appeal to a wider audience, Herman scaled HOW IT GREW PROFITABLE? Yes down DashBid’s original product so it would be SearchMarketers.com, closely HOW IT GREW “When you go to watch a video on attractive for small and midsize companies. He then associated with Google, receives new products a news website, for example, and see a little spin- began rebuilding his own rm from scratch. in advance from the tech giant that it can roll ning circle, it’s not actually the video loading,” said His rst so ware was for videos shown on out to clients. CEO Joe Britton also attributes DashBid CEO omas Herman. “ e opportunity desktop computers, but in 2014, the rm started its growth to its expanding network of websites to show you an advertisement is being auctioned.” developing a product that would work on mobile and the ability to clearly communicate to clients On one side is the publisher who hosts the video devices. It has since grown tremendously. what his rm can o er. and wants to get the highest price. On the other are While the technology itself was obviously essen- the advertisers that want to pay as little as possible tial to making the company successful, Herman be- for the right opportunity to show their ads. In the lieves that the real secret behind DashBid’s growth lightning-fast bidding war that ensues, based on in- was recognizing they were in the right place at the formation about who’s watching, DashBid’s auction right time, and pushing forward with con dence. BOUNCE EXCHANGE so ware ghts to get the companies hosting the “ ere was a great need for what we did,” he said. Collects information on individuals’ video the best deal. DashBid is currently developing a number of prod- Herman was chief operating o cer of an earlier ucts, including 360-degree ads that use virtual-reality browsing behavior so marketers can iteration of DashBid until the rm went under technology to give viewers an immersive experience. improve their campaigns LOCATION Midtown 2012 REVENUE $107,216 2015 REVENUE $15.7 million 02 GROWTH RATE 14,575% LOCAL EMPLOYEES 115 04 TOTAL EMPLOYEES 123 PROFITABLE? No HOW IT GREW Bounce uses its Behavioral Marketing Cloud to allow marketers to identify when users will exit a website or what makes them buy a product. Clients include Hearst, Rodale, Lu hansa and Microso . e Bounce Exchange attributes greater sales in 2015 to a concerted e ort: Each pod within the company was assigned key performance indicators and received rewards when it hit them.

PERSADO Its “cognitive” computing gures out how to make marketing emails and advertising copy more persuasive LOCATION Flatiron district 2012 REVENUE $183,701 2015 REVENUE $17.4 million GROWTH RATE 9,372% LOCAL EMPLOYEES 91 TOTAL EMPLOYEES 213 THOMAS HERMAN: PROFITABLE? Not available Working on virtual- HOW IT GREW reality ads. Since Persado launched 05 in 2012, its cognitive computing platform—essentially a practical application of arti cial intelligence—has enhanced millions of marketing messages with words and phrases that improve results. e so ware, which “learns” from feedback, has enabled the company to grow its customer base by 4,550% in the past three years. Microso , Verizon Wireless, Citi and Best Buy are among the nearly 100 top brands employing it. Persado is now looking to apply its technology to uses such as motivating health and wellness app users to eat better and exercise more. BUCK ENNIS

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P018_P019_CN_20161010.indd 19 10/6/16 8:31 PM TABOOLA The hidden hand behind the “recommended for you” links on many web pages, Taboola serves content to readers and product suggestions to EXUSIA customers likely to want them Helps nancial, high-tech, health care LOCATION and government clients manage and Flatiron district monetize data to improve their products, 2012 REVENUE $7.7 million services and operations 2015 REVENUE $335.6 million GROWTH RATE 4,268% LOCATION Midtown LOCAL EMPLOYEES 163 2012 REVENUE $167,552 8 TOTAL EMPLOYEES 519 2015 REVENUE $14.9 million 0 PROFITABLE? Not available 6 GROWTH RATE 8,801% HOW IT GREW A $117 million funding 0 LOCAL EMPLOYEES 26 round early in 2015 and an investment from TOTAL EMPLOYEES 176 Chinese search giant Baidu helped Taboola beef PROFITABLE? Yes up its mobile o erings and expand internation- HOW IT GREW An information-management con - ally. Its partners now include Axel Springer, sulting rm, Exusia helps companies better manage Condé Nast and the Weather Channel. In July, data to increase revenue, operate more e ciently and Taboola, which keeps its engineering team in improve their compliance with regulations. In 2015, Israel, bought video-recommendation engine Exusia expanded its scope of services, added the Convert Media, No. 24 on the Fast 50 list. health care industry to its roster of client sectors and Taboola can now integrate video into a network grew its team in India by 300% to support customers that o ers 360 billion content recommendations in North America, Latin America and Africa. to over a billion unique visitors every month.

TALDEPOT.COM Sells packaged goods and grocery items in bulk to homes and businesses around the United States LOCATION Cedarhurst, L.I. 2012 REVENUE $209,574 2015 REVENUE $14.9 million GROWTH RATE 6,988% LOCAL EMPLOYEES 76 07 TOTAL EMPLOYEES 76 PROFITABLE? Yes HOW IT GREW When it comes to e-commerce, there’s Amazon and then there’s everyone else. In 2012, Tal Depot CEO Jeremy Reichmann realized he could work with the e-tail giant while making a plan for an independent future. Reichmann and COO Seth Yanofsky started with $35,000 in capital between them and a single product—an energy drink that Yanofsky had exclusive rights to sell in the Northeast— and quickly added more items. Soon, they were selling thousands of products on the site, leveraging Amazon’s millions of users and logistical support. ey used the pro ts from this part of the business to market and build out TalDepot.com, which sold bulk groceries and other goods to households and businesses. anks to Amazon and the volume of merchandise they were moving, the partners were able to continually lower the cost of their products. e Amazon a liation also forced a focus on customer service, because the website suspends sellers whose approval ratings fall below the upper 90s. Along with intense marketing and customer recruitment e orts, Reichmann and Yanofsky grew TalDepot.com. More and more households and businesses came directly to the site for their bulk buying needs, which meant that JEREMY REICHMANN the company was saving the 15 percent transac- (center): The TalDepot.com team gives him a bigCAP push. LEADIN KO: caption tion fee charged by Amazon. readout KO go here and here e plan worked. By starting small but looking big due to the infrastructural support from Amazon, Tal Depot was able to turn into a giant in its own right. BUCK ENNIS

20 | CRAIN’S NEW YORK BUSINESS | OCTOBER 10, 2016

P020_P021_CN_20161010.indd 20 10/6/16 6:59 PM TICKPICK ADORE ME Online marketplace for reselling tickets Sells its proprietary lingerie to sports, events and concerts and swimwear mostly online SARAH KRAUSS: The LOCATION Garment district LOCATION CEO of S’well has a Garment district 2012 REVENUE $662,521 lot to smile about. 2012 REVENUE $1.1 million 2015 REVENUE $23.8 million 2015 REVENUE $42.7 million GROWTH RATE 3,488% GROWTH RATE S’WELL 9 3,782% LOCAL EMPLOYEES 13 LOCAL EMPLOYEES 43 Makes a nonleaching stainless- 0 TOTAL EMPLOYEES 13 steel bottle that keeps drinks cold for TOTAL EMPLOYEES 88 PROFITABLE? Yes 24 hours and hot for 12 PROFITABLE? No HOW IT GREW TickPick charges just LOCATION HOW IT GREW Its undies exude sexiness, but that’s 10 a simple commission for purchases, Chelsea not the only thing putting the ve-year-old company distinguishing it from competitors that 2012 REVENUE $1.4 million in the accelerated-growth lane. Adore Me has bene ted charge as much as 25% of the ticket price in 2015 REVENUE $46.6 million from its reliance on A/B, or split testing—which enables fees. But a er creating the platform and an algo- GROWTH RATE 3,228% it to determine how di erent designs, models and poses rithm to help users nd both the best seats and the LOCAL EMPLOYEES 36 score with customers. Other growth strategies include best prices, cofounder Brett Goldberg noticed the 1 TOTAL EMPLOYEES 38 running ads, for the rst time, on MTV, Bravo, E and company was having trouble appearing on any- 1 Lifetime; dipping into brick-and-mortar retailing by one’s radar. Cre- PROFITABLE? Yes putting garments in a handful of Nordstrom stores; ating a blog that HOW IT GREW e bottles are not only and introducing less lacy bras for T-shirt wearers. showcased the hip but functional. Sales are growing due to Still, some customers weren’t smitten with Adore rm’s knowledge three rising consumer trends: the birth of Me’s VIP membership subscription plan. While o er- of venues helped it “athleisure,” the eco-friendly movement away ing price deals on merchandise, it also involved a com- start rank- from single-use disposable water bottles and plicated refund process. e rm last year simpli ed ing higher the popularity of corporate social responsibility VIP refunds to just two clicks—one that leads to “My in search (S’well promotes its practice of donating a Account,” the other to “Request a Refund.” results. portion of sales to UNICEF).

BLUE APRON Delivers fresh, seasonal ingredients from farms and suppliers that are pre- portioned for recipes that customers prepare at home LOCATIONS SoHo, Flatiron district 2013 REVENUE $12 million* 2015 REVENUE $360 million* TWO-YEAR GROWTH RATE 2,900% LOCAL EMPLOYEES 350 12 TOTAL EMPLOYEES 4,000 PROFITABLE? Not available HOW IT GREW One of a handful of New York City “unicorns”—startups valued above $1 billion—$2 billion Blue Apron ships about 8 million meals a month, thriving o a desire among urbanites to cut their dependence on prepared food and cook at home. A weekly subscription costs around $60 for three recipes that each serve two. In just two years, “we’ve grown quickly not just by adding customers but also by retaining them and making Blue Apron part of people’s daily lives,” a spokesperson said. *Crain’s estimate

OCTOBER 10, 2016 | CRAIN’S NEW YORK BUSINESS | 21

P020_P021_CN_20161010.indd 21 10/6/16 6:59 PM MOVABLE INK Helps companies tailor their email marketing messages to customers in real time LOCATION Midtown 2012 REVENUE $905,306 2015 REVENUE $17.3 million 4 GROWTH RATE 1,906% 1 LOCAL EMPLOYEES 80 TOTAL EMPLOYEES 96 PROFITABLE? No HOW IT GREW CEO Vivek Sharma says Movable Ink is still bene ting from a key business decision in 2011: A er recognizing that the company was targeting clients that were too small, he set the rm’s sights on bigger brands and added a customer support team to FANDUEL explain how to use the program to get results. Daily fantasy sports startup that allows base. In the month before the start of the 2015 NFL customers to win cash prizes based on season, FanDuel and Dra Kings outspent the entire the statistical performance of athletes in beer industry, airing nearly 1,300 minutes of ads a day. rough October 2015, FanDuel alone spent NATIONAL MEDTRANS real-world competitions more than $130 million on television ads, had a LOCATION Flatiron district valuation of over $1 billion and anticipated revenue NETWORK of more than $170 million. 2012 REVENUE $5 million Coordinates transportation of elderly and at October, however, things went sideways 2015 REVENUE $131.8 million* disabled patients enrolled in public health when a Dra Kings employee won $350,000 in a insurance to their doctor’s appointments 3 GROWTH RATE 2,535% FanDuel contest, raising the question of whether LOCAL EMPLOYEES 169 employees at the companies were trading inside LOCATION Ronkonkoma, L.I. 1 information. e ensuing uproar drew unwanted TOTAL EMPLOYEES 2012 REVENUE $4 million 395 scrutiny and led New York Attorney General Eric PROFITABLE? Not available Schneiderman to order both companies to stop 2015 REVENUE $73.7 million HOW IT GREW FanDuel was riding high at the accepting bets. He alleged that daily fantasy sports GROWTH RATE 1,765% beginning of 2015. Founded in 2009 by Scottish were illegal because they are games of chance— LOCAL EMPLOYEES 93 not skill. e number of players plummeted and, 15 entrepreneur Nigel Eccles, the company tapped TOTAL EMPLOYEES 136 into the popularity of fantasy sports, o ering users accordingly, so did revenue. Crain’s estimates PROFITABLE? the chance to play and win money on a daily basis. FanDuel earned just over $130 million in 2015, Yes Customers chose a roster, and FanDuel paid the well below its projected gure, in part because the HOW IT GREW National MedTrans Network winner based on the players’ actual performance. company shut down its New York operations. has been contracting with Medicaid health plans FanDuel and its main competition, Boston-based e challenges forced the fast-growing company since 2005 to provide rides for elderly patients, but Dra Kings, owned more than 90% of the to mature quickly. It hired lobbyists and lawyers and growth was initially slow. Until recently, the fast-growing market. In September 2014, the pressed its case. In August, Gov. Andrew Cuomo government had handled most non-emergency company closed a $70 million Series D round with signed a bill legalizing daily fantasy sports websites medical-transportation contracts, not insurance investors including Shamrock Capital and NBC while giving the state’s Gaming Commission power companies. In 2011 and 2012, demand for the Sports, followed by $275 million from such to regulate them. Companies must now be licensed service exploded when New York state began investors as KKR, Google Capital and Time Warner by the state and pay a tax equal to 15% of their gross transferring more responsibility for managing in July 2015. at money went directly into revenue. It was a small price to pay. FanDuel was Medicaid bene ts to health plans, which in turn advertising in a furious e ort to grow its customer back up in New York just in time for football—the sought service providers that could coordinate

BUCK ENNIS *Crain’s estimate industry’s busiest and most lucrative season. transportation for their members.

22 | CRAIN’S NEW YORK BUSINESS | OCTOBER 10, 2016

P022_P023_CN_20161010.indd 22 10/6/16 7:24 PM

SEATGEEK Provides ticket prices for ballgames, concerts and Broadway shows so consumers can comparison-shop among dozens of secondary-market ticket websites LOCATION NoHo 2012 REVENUE $5.2 million* 2015 REVENUE $73.5 million* 6 GROWTH RATE 1,313% 1 LOCAL EMPLOYEES 93 TOTAL EMPLOYEES 102 PROFITABLE? Not available HOW IT GREW SeatGeek has done for the ticket-selling industry what Kayak has done for airlines: made it easier to buy cheap tickets online. e company stands out in a crowded eld by providing a “deal score” that rates ticket o ers based on price, location and recent sales trends. *PrivCo estimate

KARGO Creates ads for smartphones LOCATION Union Square 2012 REVENUE $7 million 2015 REVENUE $94 million GROWTH RATE 1,245% LOCAL EMPLOYEES 119 17 TOTAL EMPLOYEES 169 PROFITABLE? Yes HOW IT GREW Harry Kargman launched Kargo in 1999, only to see the so ware company op when the Nasdaq bubble popped a few years later. Undeterred, Kargman changed direction and in 2004 started selling ringtones for cellphones—until the introduction of the iPhone in 2007 blew up that business. So he changed tack again and turned Kargo into a host for magazine websites and tried to sell online advertising. at didn’t take either, so about four years ago, Kargman turned his company’s focus toward creating ads that appear on smartphones. At long last, Kargo found its niche. “It only took about a dozen years to become an overnight success,” Kargman quipped. Kargo specializes in turning concepts from clients like Proctor & Gamble or ad agency Publicis into ads that people won’t be inclined to click away from. Kargo-made ads now appear on websites owned by Hearst, NBC, Vice and other media powerhouses. Kargo is pro table and debt-free and in 2016 will generate more than $100 million in revenue. What’s more, it has no outside shareholders a er Kargman, 42, bought out his venture capital investors in 2008 and allocated their equity to his employees. e absence of impatient VCs anxious for a big payday gives Kargo time to invest in research and development, and Kargman reckons he has 90 engineers and product developers working on projects that aren’t generating revenue—yet. HARRY KARGMAN: Earlier this year, Kargman’s rm started licens- A CEO who isn’t ing its technology—a move he gured would save afraid of change. time, and emails—while clients made advertising decisions. Licensing sales got o to a slow start but now account for a signi cant chunk of revenue that gures to grow in the coming years. “ is company has already been through four pivots over its life,” Kargman said. “Maybe we’re

BUCK ENNIS now onto our h.”

24 | CRAIN’S NEW YORK BUSINESS | OCTOBER 10, 2016

P024_P025_CN_20161010.indd 24 10/6/16 6:30 PM BOYCE TECHNOLOGIES WEWORK Makes and installs Help Point FOOD52 Turns of ce towers into affordable emergency call stations on subway E-commerce site founded work spaces for entrepreneurs and platforms so riders underground can by former New York Times freelancers reach police and other rst responders food editor Amanda Hesser LOCATION Chelsea and writer and caterer Merrill LOCATION Financial district 2012 REVENUE $20 million* Stubbs 2012 REVENUE $2.2 million 2015 REVENUE $250 million* 2015 REVENUE $29 million LOCATION Chelsea GROWTH RATE 1,150% GROWTH RATE 1,238% 2012 REVENUE $886,602 LOCAL EMPLOYEES Not available 20 LOCAL EMPLOYEES 65 2015 REVENUE $11.3 million TOTAL EMPLOYEES More than 1,000 TOTAL EMPLOYEES 65 GROWTH RATE 1,173% PROFITABLE? Not available PROFITABLE? Yes LOCAL EMPLOYEES 46 HOW IT GREW Cofounded by former HOW IT GREW A er winning a TOTAL EMPLOYEES 52 kibbutznik Adam Neumann in 2010, WeWork Metropolitan Transportation PROFITABLE? No caught the wave of a rapidly changing employment market, becoming an economical base Authority contract, Boyce Tech- HOW IT GREW With a mix of for freelancers, consultants, entrepreneurs and nologies started installing new 8 recipes and smart writing, Food52 1 small businesses that didn’t want to be both- devices in 2011 to enable subway has fostered a community of more ered managing their own real estate. With riders to communicate reliably with than 400,000 foodies who critique $1.4 billion in venture capital and private-equity the world above in an emergency. e and tweak each other’s recipes backing, the company has expanded to more nine-year-old rm, whose clients include and shop the site’s hand-picked than 100 locations in 37 cities across a dozen universities, airports and o ce buildings, has kitchenware, home furnishings, countries around the world. Its next conquest: installed more than 2,000 Help Points and is specialty food items and jewelry. homes. Lately, WeWork has been expanding its moving into a 100,000-square-foot Long Island Food52 also launched an app that City warehouse by year’s end. work and living space concept, WeLive . allows users to share images of their *PrivCo estimate cooking, and it partnered with Ten Speed Press to publish cookbooks. E-commerce—60% of revenue—and advertising both continue to grow. e founders say revenue will top $19 million in 2016.

AMANDA HESSER AND 9 MERRILL STUBBS: 191 Riding the foodie wave. JAMES RANSOM/FOOD52

OCTOBER 10, 2016 | CRAIN’S NEW YORK BUSINESS | 25

P024_P025_CN_20161010.indd 25 10/6/16 6:31 PM PHARMAPACKS Sells health and beauty products through “A few years ago, a lot of the wholesalers and its own website and retailers such as distributors didn’t want to work with us because eBay and Amazon online retail was still new,” said Vagenas. “Now distributors and wholesalers are coming to us, and LOCATION College Point, Queens same thing with brands, and same thing with sales 2012 REVENUE $5.7 million channels. Marketplaces are the malls of the future, 2015 REVENUE $66.6 million and everyone is trying to create a marketplace.” GROWTH RATE 1,071% Pharmapacks uses technology to keep its LOCAL EMPLOYEES 250 marketplace dynamic and responsive. Its listings are automatically adjusted based on data collected TOTAL EMPLOYEES 250 on online shopping habits and prices. e costs of PROFITABLE? Yes shipping and purchasing also in uence prices and HOW IT GREW Pharmapacks cofounder inventory, keeping the catalog in constant ux. 1 Andrew Vagenas rst began selling “When we get a better deal, prices automatically 2 health and hygiene goods online in change on the sales channel,” Vagenas said. “We 2010 to supplement the retail business at pass that down to the customer.” his brick-and-mortar pharmacy in the Bronx. e Whitestone, Queens, native started the Starting out as a reseller with about 2,000 products business with $750,000 borrowed mainly from available on its website, Pharmapacks is now a friends and family, and many of his fellow ex- thriving e-commerce company with a catalog of ecutives are from the neighborhood. Revenue about 25,000 items ranging from makeup to school continues to climb, Vagenas said, and he projects supplies. e secret to the company’s growth, accord- Pharmapacks’ sales will be between $130 million ing to Vagenas, is the ability to replicate its propri- and $160 million in 2016. etary e-commerce platform on multiple sites, which A er perfecting its technology and securing its now include Amazon, eBay and Overstock.com, in e-commerce reputation, Pharmapacks is focused addition to Pharmapacks’ own website. Last year, the on expanding into new territories. e company’s company caught the attention of Walmart and is now plans include forays into new products, such as partnered with the retail giant and a discount site baby and pet supplies, and new regions. Phar- that Walmart acquired in August mapacks began selling in Canada in April and is called Jet.com. planning to go global within the next six months. BIZ2CREDIT Operates an online marketplace that matches small businesses with sources of capital, and services those loans LOCATION Midtown west 2012 REVENUE $7.6 million* 2015 REVENUE $80 million* GROWTH RATE 953% LOCAL EMPLOYEES Not available 23 TOTAL EMPLOYEES Not available PROFITABLE? Not available HOW IT GREW Biz2Credit makes it easy for small businesses to apply for commercial loans online. e rm doesn’t make loans, but it connects borrowers to a network of banks and other rms that do. Even though banks are lending to small businesses again a er a long drought, the foothold Biz2Credit established during the hard times should position it well for years to come. *Crain’s estimate

CONVERTMEDIA A platform for publishers to manage video advertisements ARROHEALTH LOCATION Flatiron district 2012 REVENUE $1.9 million Helps health insurers and physician groups change in its core business. Predominantly a 2015 REVENUE $18.9 million better understand the medical spending third-party administrator that served both the 4 habits of members and patients medical and legal sectors, MedSave had 2012 health GROWTH RATE 909% 2 care revenue of $3.9 million, less than a quarter of LOCAL EMPLOYEES 16 LOCATION Hauppauge, NY its total $16.7 million in revenue. e company bet, TOTAL EMPLOYEES 51 2012 REVENUE $3.9 million correctly, that it could nd more growth and PROFITABLE? Yes 2015 REVENUE $42.1 million opportunity in the health care industry. It cast o the HOW IT GREW Founded in 2007, the company legal and other legacy businesses to become one of GROWTH RATE 990% was acquired by Taboola (No. 8 on the Fast 50 list) the nation’s largest retrievers, reviewers and analyz- LOCAL EMPLOYEES 226 in August 2016 and has capitalized on the rise in ers of medical record data. e company helps its TOTAL EMPLOYEES 749 online video, o ering digital publishers a platform health care customers—insurers and doctors’ to access and display video advertisements. Its PROFITABLE? Yes groups—better understand the medical conditions tools allow clients to control video placement and HOW IT GREW Formerly MedSave USA, and care patterns of their members, with the goal of 22 features like volume control to improve user the company rebranded itself as Arro- improving care and reducing costs. Arrohealth says experience or increase revenue. COURTESY OF PHARMAPACKS, BUCK ENNIS COURTESY OF PHARMAPACKS, Health in 2015 a er making a substantial it’s on pace to earn $55 million in revenue for 2016.

26 | CRAIN’S NEW YORK BUSINESS | OCTOBER 10, 2016

P026_P027_CN_20161010.indd 26 10/6/16 7:27 PM ONDECK CAPITAL Provides loans to small businesses LOCATION Midtown west 2012 REVENUE $25.6 million 2015 REVENUE $254.8 million GROWTH RATE 894% 25 LOCAL EMPLOYEES 377 TOTAL EMPLOYEES 632 PROFITABLE? No HOW IT GREW e types of small businesses that turn to OnDeck Capital for loans are “what you might see while walking down the street in New York,” according to Noah Breslow, the NOAH BRESLOW: online lender’s CEO. Restaurateurs seeking new equipment and retail shop owners looking to Ful lling the need for getting a business buy inventory for the next season are common customers, he said, but the company’s portfo- loan online lio spans about 700 di erent industries. “It’s incredibly diverse,” Breslow said. OnDeck got its start in 2007, o ering loans to small businesses that banks didn’t want to serve. Over the years, the company has re ned its OnDeck Score tool, which generates a rapid credit rating for businesses and determines the types of loans they can receive. At rst, the largest loan o ered was $100,000 for a one-year term, but now businesses with better credit can borrow as much as $500,000 over three years. OnDeck also began o ering lines of credit in 2013. During the past few years, online loan applications have surged. OnDeck disbursed more than $1.8 billion to customers in the U.S., Australia and Canada in 2015, up from $173 million in 2012. In that time, OnDeck’s gross revenue increased nearly tenfold. “In the early days, lots of customers would come to us a er getting declined at a bank,” Breslow said. Now, he said, about 80% of customers come to OnDeck rst. But that hasn’t translated into pro ts. e company has consistently reported net losses in the past few years, which reached $24.4 million for 2013. And with the steady decline in OnDeck’s stock price since it went public in December 2014, the company’s future is uncer- tain. OnDeck’s stock debuted at $24.15 per share and fell to less than half that price by the end of 2015. Shares were selling for just over $6 in mid-September. Still, Breslow says the convenience of online lending will continue to attract new customers who previously would have visited a bank: “Increasingly they’re saying, ‘I can go online, do a Google search and get a loan.’”

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OCTOBER 10, 2016 | CRAIN’S NEW YORK BUSINESS | 27

P026_P027_CN_20161010.indd 27 10/6/16 7:27 PM PROLIFIC INTERACTIVE A marketing agency that builds mobile KEPLER GROUP apps for high-growth lifestyle brands Transforms big data into LOCATION Dumbo, Brooklyn marketing strategies 6 2012 REVENUE $1 million 2 2015 REVENUE $10.2 million LOCATION Kips Bay GROWTH RATE 882% 2012 REVENUE $1.1 million LOCAL EMPLOYEES 78 2015 REVENUE $10.6 million TOTAL EMPLOYEES 94 27 GROWTH RATE 889% PROFITABLE? Yes LOCAL EMPLOYEES 70 HOW IT GREW In 2013, Proli c worked with TOTAL EMPLOYEES 75 a few retail partners, including ModCloth and PROFITABLE? Yes Rent the Runway, to create mobile apps for HOW IT GREW Kepler was founded in 2012 on their most loyal customers. e apps generated the premise that most advertising agencies weren’t an ROI that made retailers take notice of the evolving fast enough to adapt to new technology, potential in mobile apps. e success of those and it takes its annual growth rate of 50% to 100% apps has attracted more brands looking for as a sign that it was right. Kepler has attracted sev- Proli c’s help with their mobile strategy, in- PETER SERPICO (LEFT) eral Fortune 500 companies by o ering clients tools cluding Alex and Ani, American Express, Saks AND JOHN MINGIONE: to track data on every component of their market- Fi h Avenue, Sephora and SoulCycle. 8 Laying the foundation for a ing plans and adjust them as needed. 2 broad range of development.

OMNIBUILD LIMOR FRIED: Seeking creativity, A construction management rm working not venture capital. on projects throughout the tristate area LOCATION Garment district 2012 REVENUE $18.4 million 2015 REVENUE $173.8 million GROWTH RATE 844% LOCAL EMPLOYEES 139 TOTAL EMPLOYEES 139 PROFITABLE? Yes HOW IT GREW Chief Operating O cer John Min- gione, 47, has been in the construction business for two-thirds of his life, which is one reason his clients trust him with so much of their business. “ at’s my elevator pitch: 85% of our work is from return clients,” he said. Omnibuild is a general contractor working on hotel, residential and commercial projects. e rm is renovating the Hotel Chelsea and converting a building along the High Line into o ces, for example. On a typical job, Omnibuild will work with a developer and manage 15 to 25 subcontractors. Mingione started the rm in 2007, about a year ADAFRUIT INDUSTRIES before the real estate market in New York City tanked. Designs and manufactures do-it-yourself In that short time, Omnibuild worked with enough electronic kits, electronic components developers and started enough projects to sustain it and tools for hobbyists and makers through the downturn and come out strong on the other side. “We had a good reputation and, even LOCATION Hudson Square though things were bad, we kept our employees,” he 2012 REVENUE $4.5 million* said. “We gured out how to make it work.” In 2015, Omnibuild acquired Cava Construction, 2015 REVENUE $40 million* which it had previously partnered with on some proj- GROWTH RATE 789% 29 ects. Mingione became the COO, while Peter Serpico LOCAL EMPLOYEES 85* took over duties as chief executive. e newly merged company began hiring a younger workforce, which TOTAL EMPLOYEES 85* Mingione credits as another driving force behind PROFITABLE? Not available the rm’s growth. As of now, Omnibuild has enough HOW IT GREW Founded in 2005 by MIT engi- business to keep it busy for the next three years. neer Limor “Ladyada” Fried, the open-source If the next downward turn of the real estate cycle hardware company has famously eschewed lasts longer than that, Mingione knows what to do. venture capital. Instead, it has grown organ- Before Omnibuild, he ran a construction rm that ically by appealing not just to makers and focused on interior renovations. at experience has hackers—a market expected to hit $6 billion in come in handy—when the market for new construc- BUCK ENNIS BUCK ENNIS , 2017—but to anyone with a yen to create. With tion dries up, Omnibuild turns to renovations. Hotels its easy-to-assemble kits and enthusiastic out- in particular are constantly in need of face-li s. reach through online tutorials, YouTube series “ ere is always work in the tristate area,” he said. for children, Circuit Playground and a weekly But even if there isn’t, Mingione has the where- show on Google Hangouts, Adafruit celebrated withal to simply buy land and build a project using its millionth order this year. *Crain’s estimate Omnibuild. Along with a partner, the rm just

JOÃO CANZIANI / AUGUST nished a hotel on Eighth Avenue.

28 | CRAIN’S NEW YORK BUSINESS | OCTOBER 10, 2016

P028_P029_CN_20161010.indd 28 10/6/16 6:34 PM CONTENTLY Licenses software to help brands create and manage online content XAD LOCATION SoHo Uses location data to help retailers 2012 REVENUE $1.7 million LIVEINTENT and brand marketers target speci c 2015 REVENUE $14.8 million Provides data analytics to allow audiences at the right moment GROWTH RATE 746% marketers to put tailored ads inside through mobile ads 32 email newsletters LOCAL EMPLOYEES 74 LOCATION Lower Manhattan TOTAL EMPLOYEES 79 LOCATION TriBeCa 2012 REVENUE $15 million* PROFITABLE? No 2012 REVENUE $6.9 million 2015 REVENUE $130 million* HOW IT GREW e founders of Contently turned 2015 REVENUE $60.8 million GROWTH RATE 767% 1 the challenge of nding a freelance writer into a tech GROWTH RATE 776% LOCAL EMPLOYEES 130+ 3 company: Its so ware provides clients with everything from ideas to analytics, and connects them to LOCAL EMPLOYEES 170 TOTAL EMPLOYEES 30 400 freelancers who can turn their concepts into reality. TOTAL EMPLOYEES 209 PROFITABLE? Yes One-year content-marketing subscription pack- PROFITABLE? No HOW IT GREW Founded in 2009, the mobile ages serve as Contently’s major revenue generator, HOW IT GREW Email may seem like an marketing rm has ridden the growth of although the tech company takes a small portion of ancient technology in a constantly evolv- location-based search and advertising. Its busi- the fee its clients pay to their freelancers. Its network PETER SERPICO (LEFT) ing digital age, but LiveIntent founder Matt ness took o a few years ago when it shi ed its includes writers, editors, photographers, graphic AND JOHN MINGIONE: Keiser can tell you it remains the rst choice designers and videographers. Laying the foundation for a focus to national brands and national chains, broad range of development. of companies for communications across gen- enabling them to link ad campaigns directly Bolstered by $12 million in funding from the likes erations. e key to LiveIntent’s growth is its to consumer behavior and use the intelligence of David Lerner, Lightbank, Sigma West and Sigma focus on customers and the digital ngerprint gained to create new customers. It serves more Price, the ve-year-old company got its big break created by their email address—rather than on than 400 national marketers, up from 300 in three years ago with American Express’ Open Forum devices—to develop 2014. e technology drives in-store sales and division, which focuses on small-business issues. the data analysis and technology to place ad- gives real-time feedback to retailers so they While equipping Open Forum with the tech tools to vertisements where and when people are open know if their tactics are working. *Crain’s estimate create brand-building content, Contently learned the to seeing them. ropes in navigating and pitching big corporations; it also got a handle on how their needs di ered from startups. Signi cantly, too, Amex elevated the rm’s credibility. e company has gone on to snag a bevy of brands, including Google and Marriott. Contently got another li from surging interest in content marketing across the Fortune 500 and For- tune 1000 corporate landscape—for not only websites but all social-media channels. Increasingly, companies see themselves as needing a voice across media platforms, but many lack the expertise to publish stories that are relevant to the audiences they target. Demand has helped the company grow its sales team to 18 people last year from just one person in 2012, while adding o ces in Minnesota, San Francisco and London and acquiring an analytics company to give clients feedback on their content. Still, it hasn’t all been smooth sailing. “For a long time, people didn’t believe that content could be a great marketing [tool],” said CTO Dave Goldberg, one of the rm’s three founders. “So we had to educate and show people that if you can create great content, you can get to your marketing goals more cheaply and more e ciently.” Since 2013, the company has launched two online publications, Content Strategist and e Freelancer, as well as the printed periodical e Content Quar- terly, to demonstrate how thoughtful content can cut through the clutter in the age of information overload.

JOE COLEMAN, SHANE SNOW AND DAVE GOLDBERG: Out to make custom content cool.

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CRAIN’S NEWYORKBUSINESS 33 STARTAPP advertisements intheirfreeadvertisements apps Enables developerstoeasilyinstall inside aphone to provide full-circle visuals. andthem, a“360”adtool that gyroscope the uses thatusers so marketing strategies tailored can be to gives clients acomprehensive, pro detailed le of include SODA the data algorithm, social which 477 million worldwide. Its signature programs products, reaching of base more auser than applications its mobile carrying advertising market. ecompany has more than 220,000 able to keep adjusting achanging its tools to serve SCOTT KNOLL: tising joinforces. Science andadver- HOW ITGREW PROFITABLE? LOCATION 2012 REVENUE 2015 REVENUE TOTAL EMPLOYEES

GROWTH RATE LOCAL EMPLOYEES Founded in 2010, StartApp has been Financial district Yes $6.7 million $54.6 million 718%

OCTOBER 10,2016 128 15 200 millionuniquemonthlyviewers tainment andoriginalcontenttoover Provides breaking news,video,enter- Tasty Kitchen took o also videos , attracting venture with Yahoo Japan inTokyo. Its year-old oces overseas, for atotal of 18,including ajoint its internationalup expansion e orts, opening two 34 BUZZFEED HOW ITGREW PROFITABLE? TOTAL EMPLOYEES LOCAL EMPLOYEES GROWTH RATE 2015 REVENUE 2012 REVENUE LOCATION **Approximate 2016headcount provided by Buzzfeed **Approximate 2016headcount provided by Buzzfeed 360 million unique monthly users and 360 million unique monthly users and 67 million fans on Facebook, helping all 67 million fans on Facebook, helping all * drive its 7billion monthly content drive its 7billion monthly content Crain’s estimate views, upviews, from fewer than 5billion in views, upviews, from fewer than 5billion in Flatiron district 2015. By all accounts, video will be a accounts,a 2015. By be all will video 2015. By all accounts, video will be a accounts,a 2015. By be all will video entertainment going forward. bigger of part Buzzfeed and news Not available Last year Last company the stepped 700% Less than Less $170million* $20million* 1,300+** 575+** LOCATION Evaluates digital-mediabuyingopportunities INTEGRAL ADSCIENCE Award fordepartment three years client best the inarow. services possible,”riences Knoll said. Integral Ad has won Science Stevie the people and “their passion to drive most the e adexpe- digital ective CEO Scott Knoll said. Akey to company’s the success its has been on providingfocused our customers with strong solutions,” technical analyze reams of data to put together e adcampaigns.ective “We’ve 36 ing advertising, Integral Ad helping has been Science clients ing advertising, Integral Ad helping has been Science clients 2012 REVENUE HOW ITGREW 2015 REVENUE West Village GROWTH RATE LOCAL EMPLOYEES PROFITABLE? TOTAL EMPLOYEES times eachday.times questionad?”—a it answers 30 billion to 40 billion should abrand consumer aparticular send an answermilliseconds question the “At what moment that, aer analyzing reams of data, can inseven client roster. Revenue growth stems from asystem with ahost of other Fortune 500companies, on its Verizon, Mills,Starbucks General and Disney, along has translated into abusiness that includes Mazda, according to Josh Walsh, one of its founders. at place, at right the time, with right the product,” Ad eorent fortunate has been “right inthe to be customer-centric at focus blue-chip brands, computers and smart TVs andsmart computers tablets,home with smartphones, information abouthowconsumersinteract A marketing-technology rm thatprovides TAPAD weather patterns based onmultiplefactors,including receive communicationsfrom brands, moment anindividualconsumershould Determines inreal timetheoptimal ADTHEORENT Macy’s and more up signed technology. to the use Verizon, devices. their Pepsi, Toyota, McDonald’s, companies reach and market to customers on all licensing program Tapad called that Coral helps Riding digital-transformation the wave engulf- $12million HOW ITGREW PROFITABLE? TOTAL EMPLOYEES LOCAL EMPLOYEES GROWTH RATE 2015 REVENUE 2012 REVENUE LOCATION HOW ITGREW PROFITABLE? TOTAL EMPLOYEES LOCAL EMPLOYEES GROWTH RATE 2015 REVENUE 2012 REVENUE LOCATION $93.3million 678% Yes 174 304 Flatiron district SoHo No Yes In 2015,Tapad introduced adata Given increasing the 595% 695% $57.7million $8.3million $42.1million $5.3million 152 106 113 75

37 3 5 10/6/16 8:05 PM IIT Provides IT consulting, staf ng and project-based outsourcing services LOCATION Melville, L.I. 2012 REVENUE $4.2 million 2015 REVENUE $29 million GROWTH RATE 594% LOCAL EMPLOYEES 46 38 TOTAL EMPLOYEES 365 PROFITABLE? Yes HOW IT GREW When the company started in 1995, IIT focused on the nancial-services sector and tech startups in the New York area. But by changing focus to one underserved sector, IIT has been able to grow. During the economic downturn in 2000 and especially a er 9/11, when nancial services and dot-com spending nearly vanished, IIT created a strategy to serve the government sector exclusively. A er learning the nitty-gritty about doing business with pols at the state, city and county levels, DINESH GULATI found IIT was able to expand to government clients in his niche by focusing other states. Today it provides consulting, sta ng on government and project-based services in Colorado, Florida, contracts. Georgia, Massachusetts, North Carolina, Oregon and Texas.

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OCTOBER 10, 2016 | CRAIN’S NEW YORK BUSINESS | 31

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CRAIN’S NEWYORKBUSINESS 39 it debuted in2013. more sales-generating leads—some 20 million since through asubscription and produce has helped Revi Its proprietary so ware, PX.com, is available online .com and TopSolar.com, it which to uses generate leads. BestQuotes.com, HomeSafety.com, MortgageOnline content onavarietyofwebandTVplatforms International newschannelthatpostsits VICE MEDIA HOW ITGREW and automotiveindustries insurance, homeservices, nancial services Generates andsellssalesleadstothe REVI MEDIA Vice’s valuation is now $4billion. ofBank Despite America. ahandful of layo year,s this Foxry and A&E—and has content with Pepsi deals and investment from traditional media—Disney, 21st Centu- ecompany operates in36countries and has attracted teamal inPyongyang for Supreme Kim Jong-un. Leader Harlemthe Globetrotters and North the Korean nation- to fame: putting on game abasketball with members of ofto think themselves boys as bad too. Among its claims coveteda highly demographic of young like who males thrives by outrageous being and provocative, catering to New Yorker company Canadian-born, the media digital nect patronsnect abutton via to Uber on website. their Search, MapsGoogle and ads. Restaurants can con- customers can now information track their across from and partnerships Uber. with Google Yext mation up to date. is year, have big boosts come businessesever that keep local online their infor- brick-and-mortar shopping: It’s more than critical increasing of use smartphones for online both and one factor driving growth for Yext. has the So maps anddevices across search engines,socialnetworks, phone number, hoursofoperation,etc.— manage theironlineidentities—address, Produces software thatletsbusinesses YEXT HOW ITGREW PROFITABLE? TOTAL EMPLOYEES LOCAL EMPLOYEES GROWTH RATE 2015 REVENUE 2012 REVENUE LOCATION HOW ITGREW PROFITABLE? TOTAL EMPLOYEES LOCAL EMPLOYEES GROWTH RATE 2015 REVENUE 2012 REVENUE LOCATION PROFITABLE? LOCATION 2012 REVENUE 2015 REVENUE TOTAL EMPLOYEES LOCAL EMPLOYEES GROWTH RATE Revi MediaRevi owns and operates Williamsburg, Brooklyn Flatiron district Not available Financial district brand” “bad-boy the Dubbed by e 471% No $1 billion* $175 million* International expansion has been Yes 510% $86.6million $14.2million 1,500* Not available 431 376 $2.7 million $17.3 million 541%

30 |

OCTOBER 10,2016 9 *Crain’s 4 estimate 4 1 2 ELI OSTREICHER: DIY sector. toa customer service 40 Bringing Bringing 10/6/16 7:39 PM REGAL WINGS Offers travel agents, blue-chip corporations to di erentiate Regal Wings from that pack in two ways: and wealthy frequent iers wholesale prices on rst, by focusing on the high-end traveler with discount air- international business and rst-class seats as fares on the most expensive seats and, second, by providing over-the-top customer care, in sharp contrast to the online well as discounted private-jet rentals shops, which are primarily self-service. LOCATION Borough Park, Brooklyn Today, his 350 blue-chip corporate accounts include 2012 REVENUE $15.4 million such powerful brands as Bayer, Berkshire Hathaway, Rolex, Walmart and his newest client, World Wrestling Enter- 2015 REVENUE $98.2 million tainment. Besides companies, Regal Wings services luxury GROWTH RATE 539% membership clubs such as American Express’ Inspirato. LOCAL EMPLOYEES 60 Professional travel agents make up a little less than half TOTAL EMPLOYEES 140 of Regal Wings’ rapidly expanding business. Because the PROFITABLE? Yes majority of the trips that most agents book involve economy HOW IT GREW What does great customer service mean to fares, it’s o en a challenge for them to accommodate the Eli Ostreicher? When an airline couldn’t guarantee that a handful of business- or rst-class iers who come their way kosher meal would be available on a last-minute booking, with fares that are su ciently discounted to maximize the Ostreicher awoke at 4 a.m., picked up pastrami sandwiches agents’ own pro ts. Ostreicher solves that problem for them from a great kosher deli and met his client at the airport through the deals he negotiates with all the major carriers. before an early morning ight. He gets the best prices because he guarantees airlines a cer- e 32-year-old Ostreicher is founder and CEO of Regal tain volume, which he usually can exceed. Wings, a travel agency dedicated to serving the 1% and those In 2015, Ostreicher launched a sister company, Regal ying on other people’s money (otherwise known as business Card, an airport lounge and travel-bene ts membership travelers) by providing wholesale business and rst-class program. Regal Wings also recently partnered with the tickets and discounted private-jet bookings. He started his China-based lounge developer DragonPass. company in 2006 at the tender age of 22, and he acknowl- “But when you ask me how we have been so successful, edges his timing wasn’t necessarily the best, as the market what has made us grow so fast, it boils down to only one was—and still is—crawling with travel discounters like answer,” he said. “We are willing to work very, very hard and Kayak, Travelocity, Expedia and Orbitz. But he made certain are not willing to take no for an answer.”

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CRAIN’S NEWYORKBUSINESS CREATE GROUPNYC for pharmaceutical brands for pharmaceuticalbrands On-demand, services at-fee advertising takes totakes get done,” she said. price, no matter how many hours it that scares McDonald. are asas they soon approved. None of to get products new hurry on market the developmentcal costs means companies pricing and where recouping astronomi- canty cause swings inagency wild where inan industry complexi-especially arena. common care health inthe advertising other innovations that have less been is working on employing and media social using email as amarketing tool, agency the companies.tical Known for in its expertise on expanding its reach to more pharmaceu- business development team and is focusing about its work. is year, Create a added colleagues and friends satis clientsed told as mouth of word Create grewlargely by projects.al ers it taps for individu- directors and copywrit- talents, including art of independent creative Hub, astable of dozens what it its calls Creator women,be maintains employees happen to all 22full-time whose demand guarantee, Create, Ingelheim.Boehringer as P zer, and AstraZeneca include major players such across country. the Its clients pharmaceutical brands supported more than 45 o. In agency’s 2015,the work saving and time money. option for marketers, she said, quickly and on budget. It’s anew up front and results delivered for model terials at fees guaranteed head, ditching standard the time-and-ma- traditionalthe ad-agency fee structure on its marketersdrug domore with less. She turned founded Create to in2009,determined help such as Celebrex drugs and Viagra, McDonald pharmaceutical industry, where she launched eciently within our clients’ budget.” executionin the done of smartly tactics and come up alot: “Where our agency shines is minutes and variations of word the “ecient” dent and founder, Natalie McDonald, for afew 3 HOW ITGREW “We stand committed the behind Create’s has model its share of risks, In its early years, To its meet on- Create’s approach has paid A veteran of agency world the both and the PROFITABLE? LOCATION 2012 REVENUE 2015 REVENUE TOTAL EMPLOYEES GROWTH RATE LOCAL EMPLOYEES Hudson Square Listen to company’s the presi- Yes $2.5million $14.1million 460% 18

13 OCTOBER 10,2016 fee philosophy. company’s at- makers love her MCDONALD: NATALIE 2016 Drug Drug REFINERY29 client’s product through choreo- consumers of experience a the in 2014,letsusers preview sites inprogress. ing it simpler to use. Squarespace 7,introduced launched in2012,was acomplete rewrite, mak- cashthe to hire web designers. Squarespace 6, mid-size businesses increative elds that lack reception from its target market: and small grade websites quickly andeasilycreate professional- A platformthatallowsbusinessesto *Crain’s A digitallifestyle-mediacompany SQUARESPACE graphed events like Hershey’s Kisses–branded photo booths or or booths Kisses–branded photo Evian-branded pop-up spas. Akey factor in the marketingthe plan is to encourage partici- LOCATION HOW ITGREW PROFITABLE? TOTAL EMPLOYEES HOW ITGREW PROFITABLE? TOTAL EMPLOYEES LOCAL EMPLOYEES GROWTH RATE 2015 REVENUE 2012 REVENUE PROFITABLE? TOTAL EMPLOYEES LOCAL EMPLOYEES GROWTH RATE 2015 REVENUES 2012 REVENUES LOCATION pants to share photos and of videos their ment, fashion health, and beauty and news an infusion of $50million in nancing last year from Scripps Interactive and experiences on social media through the through media the onexperiences social WPP, company millennial-centric this streamlined its website to make it more company’s Factory Snap app, also which June opened an o wherece inBerlin, it Tube. Re ahead, Looking in nery29 channels,social-media including You- creating for videos its website but for Itdevices. went also blast innot full only user- and advertiser-friendly on mobile produces its rst non-English site. HOW ITGREW yields participant data for clients. Silicon estimate LOCAL EMPLOYEES Creates experientialmarketing FACTORY 360 to expandreach multicultural their Valley rms and other companies seeking events so consumers can taste, events soconsumerscantaste, continue big to be drivers of growth. *Crain’s GROWTH RATE touch, hearorfeelaproduct 2015 REVENUE LOCATION 2012 REVENUE and PrivCo estimate West Village Financial district Yes No No Factory 360gives Squarespacekeepsgetting great 445% 429% Flatiron district $100million* $18.3million* With its mixof entertain- $80.1million $15.1million 418% 45 563 326 315 306 $14.5million* $2.8million* 45

4 4 4 6 5 4 10/6/16 6:12 PM APPNEXUS Online advertising marketplace that lets marketers nd the audiences they want and websites auction the space they have; the instantaneous deals take place without human interference APPNEXUS:FPO Playing matchmaker with LOCATION Flatiron district real-time digital 2012 REVENUE $50 million* data for clients. 2015 REVENUE $250 million* GROWTH RATE 400% 47 LOCAL EMPLOYEES About 700* TOTAL EMPLOYEES 1,000+* PROFITABLE? Not available HOW IT GREW AppNexus, the technology engine behind Microso ’s Ad Exchange, signed deals with more than 50 publishers in 2015, adding Axel Springer, Hearst and Nasdaq to a client list that already included global advertising leader WPP. e company also directly challenged Google’s publisher business with an “open” platform that lets companies customize their own ad-tech solutions on top of AppNexus’ base. Continuing its global expansion, AppNexus in 2015 doubled its employee count in Europe, opened o ces in Sydney and Singapore and established agships in London and Paris, bringing the total number of o ces around the world to 23. * Crain’s estimate

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OCTOBER 10, 2016 | CRAIN’S NEW YORK BUSINESS | 35

P034_P035_CN_20161010.indd 35 10/6/16 6:44 PM HOW IT GREW About a decade ago, Ben Daitz was brisket, hoisin meatballs or roasted cauli ower, ready to trade in his chef’s hat for a suit and tie. among other options. e menu has also broadened A er stints cooking at such places as Tabla, Danube beyond sandwiches to include Asian-themed salads, and Saul, he landed a gig as a broker at Time Equi- rice bowls and house-made juices. ties, a major real estate investment rm. Because e o en-tiny shops, which have few or no seats, restaurants turn over constantly, brokers can lead sport a distinctly urban energy and look, with graf- busy lives linking landlords with people who want ti art on the walls. to open new eateries. Daitz said he and Cambodia native Chaupoly NUM PANG RESTAURANTS Unfortunately, not long a er Daitz launched his were fortunate to start their business precisely A Cambodian sandwich shop with new career, the nancial crisis struck and business when the economy had cratered. People looking eight mostly takeout locations in NYC, dried up. “I learned that restaurateurs have a lot of for a ordable, interesting lunch options quickly and more to come great ideas,” he said, “but not a lot of money.” ocked to Num Pang, where most menu items cost So back into restaurants he went, this time between $8 and $12. e initial restaurant, a tight LOCATION Flatiron district teaming up with college friend Ratha Chaupoly to spot near Union Square, sold out every day for the 2012 REVENUE $2.3 million launch Num Pang in early 2009. e restaurant’s rst three months. 2015 REVENUE $11.2 million name comes from the Khmer word for bread. Having secured a foothold in midtown and lower e Cambodian-inspired sandwich shop is now Manhattan, the two partners are exploring where GROWTH RATE 390% one of the city’s fastest-growing chains. It has caught else to take their concept. And Daitz said the skills LOCAL EMPLOYEES 180 on by o ering a bolder take on banh mis, the popu- he learned as a broker come in handy. TOTAL EMPLOYEES 180 lar meat-and-vegetable-on-a-baguette combination. “I negotiate all our leases,” he said. “I even know PROFITABLE? Yes 48 Num Pang’s sandwiches feature ginger barbecued how to use Excel.”

BEN DAITZ (LEFT) AND RATHA CHAUPOLY: The pair saw the need for affordable, interesting takeout-lunch options. BUCK ENNIS

36 | CRAIN’S NEW YORK BUSINESS | OCTOBER 10, 2016

P036_P037_CN_20161010.indd 36 10/6/16 8:04 PM STRATEGIC FINANCIAL SOLUTIONS CREDIBLY Aids consumers trying to get rid of credit-card debt Online lender that 49 HOW IT GREW When the provides small company launched in 2010 as LOCATION Midtown east businesses with Retail Capital, the country was 2012 REVENUE $7.9 million just beginning to emerge from the 2015 REVENUE $37.7 million short-term loans Great Recession, and most small GROWTH RATE 376% LOCATION Flatiron district companies could not quickly access LOCAL EMPLOYEES 300 2012 REVENUE $4.2 million working capital. Credibly created a TOTAL EMPLOYEES 300 2015 REVENUE $20.1 million scoring model to predict an appli- 50 cant’s likelihood of paying o debt. PROFITABLE? Yes GROWTH RATE 379% A strategic investment from private HOW IT GREW LOCAL EMPLOYEES 23 Strategic Financial Solutions has distinguished itself from equity rm Flexpoint Ford allowed competitors by focusing on middle- and upper-middle-income customers. TOTAL EMPLOYEES 138 Credibly to expand, as have new Its hands-on approach leads to a tailored solution for each individual debtor. PROFITABLE? No partnerships with larger banks. e company has helped more than 40,000 clients reduce or resolve more than $400 million in credit-card debt.

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OCTOBER 10, 2016 | CRAIN’S NEW YORK BUSINESS | 37

P036_P037_CN_20161010.indd 37 10/6/16 8:04 PM Showing their cards For private companies, the choice to disclose revenue is a bit like a game of poker BY MATTHEW FLAMM

COMPANY INDEX PAGE PAGE early 90 companies sent their financial said Alon Kalay, an assistant professor at Columbia Adafruit Industries...... 28 National Medtrans Network .... 22 statements or confirmed their revenue Business School. Both experts say companies have to Adore Me...... 21 Num Pang Restaurants...... 36 to be considered for Crain’s Fast 50. find the balance that’s right for them. And even then AdTheorent...... 30 Omnibuild...... 28 They weighed the benefits of disclos- the equilibrium can change. AppNexus...... 35 OnDeck Capital...... 27 Ning and found that more was to be gained by One technology startup had been open about its ArroHealth...... 26 Peloton...... 18 showing off their numbers than by hiding them. revenue and profitability for years, when the com- Biz2Credit...... 26 Persado...... 19 Twelve other companies have an asterisk beside pany was carving out a new business segment, but Blue Apron...... 21 Pharmapacks...... 26 their revenue, signifying that their numbers had to no longer is. Bounce Exchange...... 19 Prolific Interactive...... 28 be estimated: As often happens with privately held “We always thought educating the market— Boyce Technologies...... 25 Refinery29...... 34 firms, they came down on the side of secrecy. showing that there actually is a market—could be BuzzFeed...... 30 Regal Wings...... 33 The question of when to talk openly about perfor- beneficial,” said its chief executive, who is holding Contently...... 29 Revi Media...... 32 mance is a complicated one for private companies. back on disclosures until the company returns to ConvertMedia...... 26 SearchMarketers.com...... 19 Those that disclose might seem more transparent profitability following a period of investment. Create Group NYC...... 34 SeatGeek...... 24 than those that don’t, but they also could be engaged One software startup with a similar growth tra- Credibly...... 37 Squarespace...... 34 in a subtle battle of wits, according to Joshua Ronen, jectory, however, has opted never to disclose reve- DashBid...... 19 StartApp...... 30 a professor of accounting at NYU’s Stern School of nue, at least not until it’s ready to go public, its CEO Exusia...... 20 Strategic Financial Solutions..... 37 Business. “If I provide my revenue and a competitor said. He compared his approach to animals puffing Factory 360...... 34 S’well...... 21 doesn’t, I’m signaling that I’m better,” he said. themselves up to seem larger to predators. FanDuel...... 22 Taboola...... 20 The competitor who keeps quiet, however, may “We’re bigger than most of our competitors,” Food52 ...... 25 TalDepot.com...... 20 have many reasons for doing so. Ronen said a silent he said. “But we want to be positioned against even IIT ...... 31 Tapad...... 30 company “could be signaling that it’s hiding the bigger guys.” Integral Ad Science...... 30 TickPick...... 21 fact that its business is better so others won’t enter And then there are companies that have a good Kargo...... 24 Vice Media...... 32 the market.” story to tell and can’t afford not to tell it. Kepler Group...... 28 WeWork...... 25 Startups that are fending off stiff competition “This is good exposure,” said John Foley, CEO LiveIntent...... 29 xAd...... 29 might have no choice but to be discreet: Their rev- of Peloton, the fitness company at No. 1 on Crain’s Movable Ink...... 22 Yext...... 32 enue could provide a clue to their pricing. “I could Fast 50. “If our growth trajectory helps us get recog- then cut my prices and knock you out of the market,” nized, then we have to share it.” n

Tuesday, October 25, 2016 CRAIN’S Sheraton New York Times Square 811 Seventh Avenue Family Business Summit 8:00 a.m. – 8:30 a.m. Registration & Networking Breakfast 8:30 a.m. – 12:00 p.m. Program Because Business is Personal Cost to Attend*: $300 for individual ticket(s) Join Crain’s as we explore how New York family-owned $3,000 for table(s) of 10 businesses have managed to survive in the city while growing $3,850 for a table of 10 and their businesses through the generations. event journal ad *If your company is a family-owned and operated business, Plenary: Dynamic duos contact [email protected] to receive a promo code to register at a reduced ticket rate. Harvey Moscot, Fourth Generation, CEO, MOSCOT You must be pre-registered to attend this event. No refunds permitted. Zack Moscot, Chief Designer, MOSCOT For more event information: Michael Rudin, Vice President, Rudin Management Company, Inc. Ashlee Schuppius Samantha Rudin, Vice President, Rudin Management Company, Inc. 212-210-0739 Kenneth Woods, CEO and Owner, Sylvia’s [email protected] Tren’ness Woods-Black, V.P. of Communications, Sylvia’s For sponsorship opportunities: Panel Discussion: Panel Discussion: Irene Bar-Am Keeping it in the family A view from outside the family 212-210-0133 [email protected] Dana Mondella Bentz, President & Chief Executive Mitchell Modell, Chief Executive Offi cer, Offi cer, Dell’s Maraschino Cherries Modell’s Sporting Goods Jessica Johnson-Cope, President, Johnson Security Michael Muzyk, President, Baldor Specialty Foods, Inc. REGISTER TODAY Andrew Rosenwach, Owner/Manager, Hal Rosenbluth, President/Chief Executive Offi cer, crainsnewyork.com/events-family2016 Rosenwach Group Kaufman Astoria Studios Stuart Zaro, Owner, Zaro’s Family Bakery Timur Yumusaklar, President & Chief Executive Offi cer, F. Schumacher & Co.

38 | CRAIN’S NEW YORK BUSINESS | October 10, 2016

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Top Tips for a Smooth Corporate Corporate Move As CEO of Dumbo Moving and Storage in Brooklyn, Lior Rachmany has learned some important lessons about corporate moves. For one thing, the retro barber chairs that startups Relocation like to add to the décor are really heavy—500 to 600 pounds. “They’re fi lled with oil at the very bottom,” said Rachmany. “When they have to be moved, it’s a challenge.” in New York: Being prepared can go a long way. Here are some of his top tips to ensure a smooth move. 1. Put someone in charge. That person should A Street Smart Guide be someone you trust to make key decisions.

aving a New York City address holds a unique cachet. As a result, many 2. Notify key contacts of the move early on. Your list should include banks and other companies are willing to do whatever it takes to move to the city or stay here, fi nancial institutions, clients and customers, Has they grow and begin to require more room, despite the challenges of fi nding utilities and the post offi ce. space in one of the most sought-after markets in the world. 3. Communicate with your team. Share with them your expectations, requests, moving Finding space in New York, whether temporary or permanent is a lot easier when strategy and moving timeline. you can tap into insights from insiders involved in the city’s real estate and offi ce- 4. Create a moving budget. Try to stay within relocation scene. those limits and make sure your mover includes oversized items in the quote, so there In our corporate relocation guide, we look at some key issues that fi rms face when are no surprises. moving to the city for the fi rst time, and how to navigate them. Should they consider 5. Declutter. Use the move as a time to clean up temporary offi ce space—and if so, what kind? Is it worth looking into commercial and recycle unnecessary items. spaces still under construction? How do fi rms help their employees get settled into 6. Minimize last-minute decisions. Hire a new home—with a minimum of disruption to their work? And how do they take into an interior designer if the space needs rearranging, and complete it ahead of time consideration the increasing overlap between living space and offi ce space in an era so the offi ce is ready for you when it’s time where work flexibility has taken hold? to move. And make sure employees know where to settle in when they get there. “Where you live and where you work are increasingly intertwined,” said Melissa Marsh, “Assign seats before the move, not after,” senior managing director, occupant experience, at commercial real estate services recommends David Lewis, president and CEO fi rm Savills Studley, headquartered in New York City. of OperationsInc, a human resources and outsourcing consulting fi rm. Then there are practical matters, like moving a conference-room table into a new 7. Plan to move at night. You would think the offi ce. Companies need to know the unwritten rules of pulling off such physical move should start in the morning and fi nish matters, quickly and effi ciently, given the city’s busy city streets and sidewalks. at a later time in the afternoon but corporate buildings usually allow relocations to take Fortunately, there are many pros willing to off er their advice on how to plan a place in the later half of day. successful relocation in New York City. Read on for their insights.

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the features big corporations want, like excellent connectivity, he said. They may also have other requirements that can be hard to find in shared spaces in some markets. “There are host of other TWO WORK IN factors: the attractiveness of the space, the market, how convenient parking or mass transit is MONTHS going to be,” Shapiro added. FREE* BY MENTIONING THIS AD Nonetheless, the trend toward using shared office space is unlikely to slow any time soon, especially Expires 12/31/16 in the major cities like New York where it is concentrated. Emergent Research, a consultancy in Lafayette, California that studies coworking, just STYLE projected that the number of coworking spaces around the world will grow from over 11,000 this year to just over 26,000 in 2020. As growth percolates, coworking spaces are becoming bigger than older ones, existing spaces are expanding physically and adding new members, and operators are getting better at figuring out how to serve more people in every square foot of FULLY FURNISHED space, according to Emergent Research’s findings, published in August.

One key driver of that growth, said Marsh, is that using flexible space reduces the financial risk that comes with a long-term lease. “For a business that The Appeal of Sharing Space is new to a particular geography, there is a lot of risk reduction,” said Marsh. “Coworking or shared office space commitment could be for as little as Continues to Grow one to three months. You might do six months. You ocated just a short Metro North ride away senior managing director, occupant experience, can have the confidence as a business owner that from Manhattan, OperationsInc has been at commercial real estate services firm Savills if things don’t turn out to be as you expected in L working with clients in New York City on a Studley, headquartered in New York City. “It is that new geography, you are not overcommitted.” frequent basis for years. So much so that recently, becoming something that is much more general the 65-person human resources outsourcing and consumption.” It doesn’t hurt that competition among shared consulting firm, based in Norwalk, Conn., decided it office spaces has helped raise the bar for the needed office space a little closer to those clients. Marsh has seen substantial-size firms in fields amenities and experiences they offer. For instance, ranging from law to professional services and even NeueHouse, located on East 25th Street in Since many of OperationsInc’s consultants work those performing special functions such as light Manhattan, offers access to a private broadcasting at clients’ offices in New York City and mainly medical or food services turn to shared space. studio, a cinema and a private dining area, and needed space to get some work done in between “Pretty much anything that happens in an office publishes its own magazine on the arts and appointments, OperationsInc opted to rent space type environment can happen in a coworking or culture. Lemonsqueeze, an incubator for startups in a WeWork coworking facility. shared office environment,” she said. located in trendy Williamsburg, Brooklyn, hosts “Friday Beers” and touts its indoor bike parking. FULLY WIRED “The presence of the space in New York gives us Even banks are using shared space. Marsh points a place to conveniently park ourselves, instead to a big bank that has set up some of its personnel Often, once companies try coworking, they’re of Starbucks,” said David Lewis, president and who cater to small-business customers in a shared hooked. OperationsInc, for instance, has found 3 COLUMBUS CIRCLE 125 PARK AVENUE 28 WEST 44TH STREET CEO. “It’s becoming more difficult to find a seat in office space. “They want to be closer to their there are side benefits to renting coworking space. Starbucks, and they’re not quiet or private.” entrepreneurial coworking customer,” she said. “They are phenomenal places to network At a time when coworking is booming, many To be sure, not every company finds that shared depending on what kind of business you companies are joining firms like OperationsInc office space is ideal. If a big corporation needs have or what type of people you are trying to REDEFINING REAL ESTATE in renting shared space, whether in a traditional temporary space because, for instance, a new connect with,” said Lewis. “I find they can offer coworking space like WeWork, temporary office is still under construction, it will often turn opportunities to connect with like-minded At Emerge212, we know that one size or solution does not work for executive suites offered by players such as Regus, to the landlord from whom it is renting the new entrepreneurs and find opportunities and or boutique providers such as Emerge212. facility— or the developer who is building it for synergies between your businesses.” every business, especially a growing one. Count on us to customize them, said Andy Shapiro, managing director of our fully furnished office space to your needs, so you pay for the space Corporations have long been turning to shared BLS & Company, a site selection and incentives He also finds that having access to conference office space when their permanent digs get too advisory firm with an office in New York City, as rooms in New York City—which comes with his that fits your business now. full, they need to open a satellite office, or a well as a board member of the Site Selectors Guild, shared office space membership—has been disaster like Hurricane Sandy displaces their team. made up of professional site-selection consultants. invaluable, given that his company runs business But today, businesses are using coworking and groups for human resources pros. Not only can shared spaces for other reasons, too. Hoping to Even when they need temporary space, many he choose from conference rooms at multiple provide a stimulating environment for their team, corporations don’t want to disrupt the commuting locations, but he can also reconfigure the meeting CONTACT US more big corporations are gravitating toward patterns of employees and future hires, according rooms to suit the gathering, he said. TO SCHEDULE A SHOWING shared spaces to cross-pollinate ideas with other to Shapiro. “You want the transitional space to be companies that are renting space there. close to the permanent solution—not on the other “They are standard conference rooms but they side of town,” said Shapiro. have been very smart about how they outfit them FULLY SERVICED 888.572.3793 “Shared space is becoming less of a product that and the furniture in there,” said Lewis. “That’s very is only of interest to startups,” said Melissa Marsh, And not every shared office space offers all of helpful.”

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Empire Stores sits between the growing Dumbo residential district that includes the Jehovah’s Witnesses’ former headquarters, and posh, picture-perfect Brooklyn Heights. Despite high prices, demand for apartments is strong and growing as more people reject the suburban lifestyle in favor of city living. They want to be able to walk or cycle to work, which many in Downtown Brooklyn or Long Island City can do. “People want to live in an urban setting,” Brian Waterman said. “They want everything on-demand. It’s very much a millennial mind-set.”

That life-work equation is what’s fueling development in Long Island City, where one third of the roughly 1,100 workers at Jet Blue headquarters live in the neighborhood, according to Liz Lusskin, president of the Long Island City Partnership. The area is becoming known as a place where residents Outer Borough Office Space: can live and work as they did when the jobs were in factories that made everything from Mack fire Grow your business. A Lifestyle Choice trucks to Silvercup bread and PepsiCola. “When recruiting, people ask us if they can live, Low rates. Great options. move to New York City for any company or abundance of natural light. Warehouses offer large raise their kids and go out to dinner. In Long Island individual used to mean one thing: a move ground-floor space that lends itself to communal City, we can do all those things,” Lusskin said. Borrowing when it’s needed most can take your business to the next level. That’s where City National Bank Ato Manhattan. But the high demand for gatherings and food concessions, such as at the commercial and residential real estate has finally Falchi Building in Long Island City. Built in 1922 It also has entertainment options that include and First American Equipment Finance, a City National company, come in. With a low-interest-rate commercial bubbled over into Brooklyn, Queens, and recently as a warehouse for Gimbel’s department store, MoMA PS1, the Noguchi Museum, the Socrates real estate loan or equipment lease financing, your business will be on The Way Up®. parts of the South Bronx, a borough long ignored the Falchi Building is now a thriving hub whose Sculpture Park and acres of parks. by developers. In each of these boroughs, vast tenant roster includes Uber, Lyft, Artisanal Cheese, numbers of people are moving into older homes Tourneau watches and the United Nations. Also in For those who can’t live and work in the same Visit cnb.com/NYLoans for the details and to request contact. and shiny new high rises, and companies are the building are Doughnut Plant and Juice Press, neighborhood, ease of commute is of primary following in their footsteps. both of which have manufacturing and retail space importance. Both Downtown Brooklyn and there. The building was developed by Jamestown Long Island City have multiple subway lines, in “Tenants are saying, ‘tell us about the boroughs,’” Properties of Manhattan’s Chelsea Market fame. addition to Long Island Railroad service and ferry COMMERCIAL REAL ESTATE LOAN said Mitchell Arkin, executive director for service, giving them distinct advantages over commercial brokerage Cushman & Wakefield. “‘We According to Arkin, this is all part of a workplace other developing areas like the Brooklyn Navy want to inspect Long Island City.’ And Brooklyn has strategy to attract and keep the best talent. Yard, Greenpoint, Bushwick, Williamsburg, Crown Whether you’re looking to purchase, improve or refinance your owner-user property, get a fixed rate as low as 3.40% a certain cachet.” “Nobody wants to go into tight places with 7-ft. Heights and the South Bronx. Those locations are on amounts from $750,000 up to $5 million.1 high ceilings,” he said. “The trend provides less often served by only one subway line leaving riders Price is the first consideration for any company individual work space and more collaboration open to being inconvenienced by even the most thinking of relocating outside of Manhattan, space to sit down, work in a group or have coffee. minor service problems. The planned suspension EQUIPMENT LEASE FINANCING specifically from midtown where the asking rents These buildings are perfect for that.” of L train service to Brooklyn is a prime example. hover around $80 per square foot, according to Newmark Grubb Knight Frank. In Long Island The Factory, also in Long Island City, is another Transportation options in Long Island City will Having the right equipment is important to the continued success of your business. Lease new computers, copiers, City, Queens, commercial rents are now half example of ample converted space. Once a Macy’s continue to be a major draw for companies moving servers and other IT equipment for less than the equipment purchase price during a 3-year lease period. Enjoy the midtown rate, roughly $38 per square foot. warehouse, the 10-story, one-million-square-foot to the area, which will include We Work in a new no payments for the first 3 months — all through First American Equipment Finance, a City National company.2 That is even less than the $58 per square foot giant will feature multiple roof decks for tenant use, Tishman Speyer project where 800,000 square in Dumbo, Brooklyn; or $50 per square foot in large windows offering expansive views of Manhattan, feet of space has been leased before construction Bushwick/Williamsburg, Brooklyn—two areas and dining options in the lobby. So far, tenants has even started. The construction of the new 1 undergoing rapid transformation from industrial/ include Ralph Lauren, Bloomingdale’s and the Cornell Tech campus on Roosevelt Island, the only The Commercial Real Estate Loan is subject to credit approval and loan documentation acceptable to City National Bank (“CNB”). Loan amount from $750,000 up to $5,000,000. Offer is limited to the business organization addressee only and is not transferable. Real property must be located in California, Connecticut, Nevada, New Jersey manufacturing hubs to residential areas bustling Madewell division of fashion-apparel brand J. Crew. bridge to which is in Long Island City, will bring or New York only. Loan must be secured by a deed of trust or mortgage of first lien priority on owner-user commercial real property; no subordinate liens permitted. Proceeds with new commercial and retail. another boost. of loan cannot be used for construction purposes (other than tenant improvements). Certain types of real property excluded. The operating business entity occupying the real According to Brian Waterman, vice chairman, property (if different from the borrower) must guarantee the loan, and such business entity’s assets must secure the guaranty. Additional guaranties may be required. Appraised According to Arkin, many companies considering Newmark Grubb Knight Frank, the Factory is the 24- Despite the development, retail and service value of the real property to be determined by an appraisal obtained by CNB. Certain fees, including appraisal, title insurance, loan closing attorney fees and a portion of the New York mortgage tax (for properties located in New York) are payable by the borrower in connection with the loan. To be eligible for the offer, a signed and dated loan application hour experience millennials look for in a workplace. businesses like shoemakers and dry cleaners have moves out of Manhattan may have been paying on CNB’s form must be received by November 30, 2016. Financial information and other information requested by CNB must be received by December 30, 2016, and loan closing $35-$40 per square foot but are facing new “Companies no longer look at a space as a place to been slow to arrive on the scene. But that also must occur by January 31, 2017. Advertised rates are as of September 1, 2016 and are subject to change without notice. Contact your relationship manager for current rates leases asking as high as $60-$70 per square house an employee,” he said. “It is a recruitment tool is changing, according to Eric Benaim, founder and terms. Refinances of existing CNB business loans are excluded from this offer. If you are approved for a Commercial Real Estate Loan, all payments must be automatically foot. New York City tax incentives make moves to and a retention tool.” and CEO of Modern Spaces, a broker who also deducted from a CNB business checking or savings account. CNB business checking or savings account used for automatic payments is subject to the account’s standard transaction and other fees. Additional terms and conditions apply. Ask us for details. the outer boroughs that much more appealing. A lives in the area. He notes the presence of many 2 Equipment lease financing is subject to credit approval and documentation acceptable to First American Equipment Finance, a subsidiary of CNB. At the end of the lease program called REAP, or Relocation and Employee That 24-hour template is also key to Empire traditional mom-and-pop businesses and says term, the Lessee may elect to return the equipment to First American Equipment Finance, purchase the equipment for its fair market value purchase price, or continue renting the Assistance Program, offers a $3,000 tax credit per Stores, a former coffee warehouse that sits at the national chains like Chipotle, Dunking Donuts, CVS equipment. No minimum transaction size is required. To be eligible for the above lease offer, a completed lease application and copy of the equipment quote(s) must be submitted employee for 12 years. base of the Brooklyn Bridge in Dumbo. Designed and Duane Reade are starting to open locations in by December 30, 2016. The lease must be funded and commenced by March 31, 2017. Additional terms and conditions apply. Ask us for details. as an extension of the Brooklyn Tech Triangle, a the area as well. Companies also want a unique kind of space when hub for tech start-ups in Downtown Brooklyn, the they look outside of Manhattan, one that appeals complex offers a mix of high-end dining, retail, He adds that the lack of sufficient retail options ©2016 City National Bank to prospective employees, many of them young theater, event spaces, green space and offices. have not deterred young families from coming creative or tech types. Converted warehouses West Elm, the home furnishings company, opened in. “It’s stroller-heaven here and the schools are in trendy neighborhoods offer large floor plates, its new corporate headquarters and a flagship good,” he said. “I think the biggest business here high ceilings and vast windows that provide an store there in August. after real estate is day care.”

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Crain's Corporate Relocation Guide Adver MECH.indd 4 10/6/16 1:43 PM Grow your business. Low rates. Great options. Borrowing when it’s needed most can take your business to the next level. That’s where City National Bank and First American Equipment Finance, a City National company, come in. With a low-interest-rate commercial real estate loan or equipment lease financing, your business will be on The Way Up®.

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Whether you’re looking to purchase, improve or refinance your owner-user property, get a fixed rate as low as 3.40% on amounts from $750,000 up to $5 million.1

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Having the right equipment is important to the continued success of your business. Lease new computers, copiers, servers and other IT equipment for less than the equipment purchase price during a 3-year lease period. Enjoy no payments for the first 3 months — all through First American Equipment Finance, a City National company.2

1 The Commercial Real Estate Loan is subject to credit approval and loan documentation acceptable to City National Bank (“CNB”). Loan amount from $750,000 up to $5,000,000. Offer is limited to the business organization addressee only and is not transferable. Real property must be located in California, Connecticut, Nevada, New Jersey or New York only. Loan must be secured by a deed of trust or mortgage of first lien priority on owner-user commercial real property; no subordinate liens permitted. Proceeds of loan cannot be used for construction purposes (other than tenant improvements). Certain types of real property excluded. The operating business entity occupying the real property (if different from the borrower) must guarantee the loan, and such business entity’s assets must secure the guaranty. Additional guaranties may be required. Appraised value of the real property to be determined by an appraisal obtained by CNB. Certain fees, including appraisal, title insurance, loan closing attorney fees and a portion of the New York mortgage tax (for properties located in New York) are payable by the borrower in connection with the loan. To be eligible for the offer, a signed and dated loan application on CNB’s form must be received by November 30, 2016. Financial information and other information requested by CNB must be received by December 30, 2016, and loan closing must occur by January 31, 2017. Advertised rates are as of September 1, 2016 and are subject to change without notice. Contact your relationship manager for current rates and terms. Refinances of existing CNB business loans are excluded from this offer. If you are approved for a Commercial Real Estate Loan, all payments must be automatically deducted from a CNB business checking or savings account. CNB business checking or savings account used for automatic payments is subject to the account’s standard transaction and other fees. Additional terms and conditions apply. Ask us for details. 2 Equipment lease financing is subject to credit approval and documentation acceptable to First American Equipment Finance, a subsidiary of CNB. At the end of the lease term, the Lessee may elect to return the equipment to First American Equipment Finance, purchase the equipment for its fair market value purchase price, or continue renting the equipment. No minimum transaction size is required. To be eligible for the above lease offer, a completed lease application and copy of the equipment quote(s) must be submitted by December 30, 2016. The lease must be funded and commenced by March 31, 2017. Additional terms and conditions apply. Ask us for details.

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advisory firm with offices in Princeton, New York City, Chicago and Cleveland, as well as a board member of the Site Selectors Guild, an association of location consultants.

Some companies will have the relocating employee “job shadow” someone in the new office, to become familiar with what working there will be like, he said.

Take a holistic approach. Helping employees find housing that suits their lifestyle is just as important as meeting other considerations, such as finding a location near a train or bus line. Segment, through its relocation consultant, tries to put relocating employees in touch with clubs and other organizations where they will meet new friends in their new location.

“The piece we try to be very thoughtful about is how we increase their social cohesion,” said Roche. “It’s not just moving to a new city. It’s feeling like you belong to that city.”

Helping Employees Find Temporary Put family front and center. Next to family ties, the most common reason for declining a Housing Is Smart Business corporate move, according to Atlas Van Lines’ 2016 Corporate Relocation Survey, was spousal eady to establish a satellite office in Here are some tips on how to help employees who employment, cited by over 50% of companies that Manhattan, San Francisco-based technology are relocating find temporary housing that makes had declined relocations in 2015. “Understandably, Rfirm Segment wanted to make sure it for a successful move. families that came through the Great Recession was easy for the three employees who would be may be reluctant to gamble financial security on working there to make a smooth adjustment to Get expert help. Finding temporary housing in single salaries, placing a higher priority on keeping their new home. New York City can be time-consuming, whether a dual-income household,” according to the survey. employees relocating know the city well or not. Several months before the employees even Help from a relocation consultant can free up Given the career sacrifices they may be making, it committed to relocating, the 115-employee firm employees, allowing them more time and energy is important to make sure spouses are happy with sent them on a discovery trip to the city and to concentrate on their new position instead. “A their temporary housing and eventual permanent the surrounding suburbs, where a relocation new job, a new city, a new commute, a new coffee place of residence, and that they get needed consultant helped them get familiar with the area shop—the least amount of work people have to put assistance from a relocation consultant with so that they could make an informed decision. into really settling in, the better,” said Roche. issues such as finding schools for their children, said Roche. Once the employees agreed to the move and decided on the neighborhoods where they would like to live, Segment put them up for two months “The piece we try to be very thoughtful about is how we in Airbnb rentals in those locations, for them to increase their social cohesion,” said Roche. “It’s not just get settled. “They can start creating habits that make them feel they moved in there,” said Adriana moving to a new city. It’s feeling like you belong to that city.” Roche, vice president of human resources at Segment, which provides a platform to centralize a company’s customer data in one place for analysis “Temporary housing is best sourced via a Consider the cost of living. If an employee’s cost and marketing. professional in my view,” said David Lewis, of living is comparable to New York, an employer president and CEO of OperationsInc, a human may not have to make salary adjustments to From there, employees can begin looking for more resources outsourcing and consulting firm, based reflect the cost of living here. However, employees permanent housing, getting assistance from the in Norwalk, Conn. “They will have some solid moving from a lower-cost area such as the relocation consultant with paperwork needed for options you otherwise may not be able to find on Southeast may need a bump in pay to afford moves to permanent residences, such as letters of your own, and will know when a hotel makes more housing in the New York City area, even if it’s just recommendation for coops. sense versus a corporate apartment.” for six months or a year.

As employers like Segment are well aware, many Spring for plane tickets. If employees are Many companies, especially larger ones, cover employees are hesitant to pull up stakes and preparing to make a permanent move from a moving costs to some extent, whether through full relocate—whether it is within the New York City distance, experts recommend paying for them and reimbursement or a lump sum payment, according metro area or to other states. More than half of their family to visit the area in person before they to the Atlas survey. Every effort a company makes firms saw employees decline relocation in 2015, commit to a move. Employees will be happier at to keep their employees happy throughout the according to Atlas Van Lines’ Annual Corporate work, say experts, if they like the neighborhood process of relocating, brings the firm closer to its Relocation Survey Results. where they will be living. goals, many firms realize.

But what often persuades employees to make the “A familiarization tour is pretty much a standard Segment, for instance, ultimately hopes to bring transition is help from an employer in finding a practice in corporate relocations,” said Andy more employees to its New York City office. “We home situation they can use as a temporary base Shapiro, managing director of Biggins Lacy have a lot of potential customers in that area,” said as they look for a more permanent one. Shapiro & Company, a site selection and incentives Roche. “It really makes sense to build it out.”

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Notice of Formation of EdgeFunding C.W. JENNINGS Notice of Qualification of NOBLE CAPI- TAL ADVISORS, LP LLC Arts. of Org. filed with Secy. of INDUSTRIAL EXCHANGE Appl. for Auth. filed with Secy. of State State of NY (SSNY) on 08/15/16. Of- Global Expansion Consulting of NY (SSNY) on 09/01/16. Office loca- fice location: NY County. Princ. office Construction • Acquisitions tion: NY County. LP formed in Delaware of LLC: 14 Wall St., Ste. 2078, NY, NY Exporting • Financing (DE) on 06/22/16. Princ. office of LP: 10005. SSNY designated as agent of (855) 707-1944 c/o Noble Capital Advisors, LLC, 1330 LLC upon whom process against it Ave. of the Americas, 7th Fl., NY, NY may be served. SSNY shall mail proc- 10104. SSNY designated as agent of ess to Corporation Servce Co., 80 LP upon whom process against it may State St., Albany, NY 12207. Purpose: EVENTS be served. SSNY shall mail process to Any lawful activity the Partnership, Attn: George Noble at the princ. office of the LP. Name and NYC Television & Video Week’s addr. of each general partner are availa- Notice of Formation of Amyar Holdings ble from SSNY. DE addr. of LP: 1209 LLC, Art. of Org. filed with Sec’y of Orange St., Wilmington, DE 19801. State (SSNY) on 7/26/16. Office loca- Cert. of LP filed with Secy. of State, tion: NY County. SSNY designated as Div. of Corps., John G. Townsend Bldg., agent of LLC upon whom process October 19th, 2016 401 Federal St. - Ste. 4, Dover, DE against it may be served. SSNY shall 19901. Purpose: Any lawful activity. mail copy of process to GFI Capital Re- Featuring speakers from sources, 140 Broadway, 41st Fl., NY, Google, AT&T, Sony, NY 10005. Purpose: any lawful activi- Notice of Qualification of Hospira World- ties. Pilgrim Media Group and more! wide, LLC. Authority filed with NY Dept. of State on 8/18/16. Office location: NY Save 30%* with code CRAINSVIP PUBLIC & LEGAL NOTICES County. Princ. bus. addr.: 275 N. Field Notice of Qualification of YipTel, L.L.C. at nyctvweek.com Dr., Lake Forest, IL 60045. LLC formed Authority filed with NY Dept. of State on *excludes Hall of Fame in DE on 3/5/04. NY Sec. of State desig- 8/26/16. Office location: NY County. Notice of Qualification of Verve Hold- nated agent of LLC upon whom process LLC registered in UT on 12/9/09. NY ings, LLC. Authority filed with NY Dept. against it may be served and shall mail Sec. of State designated agent of LLC of State on 8/8/16. Office location: NY process to: c/o CT Corporation System, upon whom process against it may be County. Princ. bus. addr.: 24 Hubert 111 8th Ave., NY, NY 10011, regd. served and shall mail process to: c/o St., NY, NY 10013. LLC formed in DE agent upon whom process may be CT Corporation System, 111 8th Ave., on 5/23/16. NY Sec. of State designat- served. DE addr. of LLC: 1209 Orange NY, NY 10011, regd. agent upon whom ed agent of LLC upon whom process St., Wilmington, DE 19801. Cert. of process may be served. UT and princi- against it may be served and shall mail Form. filed with DE Sec. of State, 401 pal business address: 9176 S 300 W, Smart Hustle process to: c/o CT Corporation System, Federal St., Dover, DE 19901. Purpose: Ste. 1, Sandy, UT 84070. Cert. of Reg. Small Business Conference 111 8th Ave., NY, NY 10011, regd. all lawful purposes. filed with UT Sec. of State, 160 E 300 agent upon whom process may be S, 1st Fl., Salt Lake City, UT 84111. October 20th - New York City served. DE addr. of LLC: 1209 Orange Purpose: all lawful purposes. www.smarthustle.com/conference St., Wilmington, DE 19801. Cert. of 6 CONVENT PROPERTIES LLC. Art. of Join Peter Shankman, Joe Connolly Form. filed with DE Sec. of State, 401 Org. filed with the SSNY on 07/21/16. Notice of Formation of B&B ATLANTIC and hundreds of other business Federal St., Dover, DE 19901. Pur- Office: New York County. SSNY desig- LLC Arts. of Org. filed with Secy. of pose: all lawful purposes. nated as agent of the LLC upon whom owners and entrepreneurs. State of NY (SSNY) on 09/15/16. Of- process against it may be served. SSNY Have fun, learn and network! fice location: NY County. Princ. office Notice of Qual. of AFIAA 125 West 25th shall mail copy of process to the LLC, of LLC: 419 Park Ave. South, 7th Fl., Street, LLC, Auth. filed Sec’y of State 628 Broadway, Suite 400, New York, (SSNY) 8/26/16. Off. loc: NY Co. LLC NY 10012. Purpose: Any lawful purpose. NY, NY 10016. SSNY designated as POSITION AVAILABLE org. in DE 8/23/16. SSNY desig. as agent of LLC upon whom process agent of LLC upon whom proc. against against it may be served. SSNY shall it may be served. SSNY shall mail copy Notice of Formation of MOUNT SINAI mail process to B&B Urban, Attn: Alan Surveyor Capital, Energy Associate of proc. to NRAI, 111 Eighth Ave., NY, HEALTH NETWORK, LLC Arts. of Org. filed Bell at the princ. office of the LLC. Pur- with Secy. of State of NY (SSNY) on pose: Any lawful activity. (Citadel LLC – New York, NY) NY 10011, the Reg. Agt. upon whom 09/01/16. Office location: NY County. Cndct fundamental analysis of cos, business proc. may be served. DE off. addr.: 160 Greentree Dr., Ste. 101, Dover, DE Princ. office of LLC: c/o Mount Sinai mdls & inds. F/T. Reqs Bach’s dgr in Finan, Name of Foreign LLC: ExecBrands LLC. 19904. Cert. of Form. on file: SSDE, Health System, Inc., Attn: Legal Dept., Acct’g, Eng or rel fld & 2 yrs exp in the job Authority filed with NY Dept. of State: Townsend Bldg., Dover, DE 19901. One Gustave L. Levy Pl., Box 1099, NY, offered or cover’g Industrials or Energy 8/12/16. NYS fict. name: Elite Image Purp: any lawful activities. NY 10029. SSNY designated as agent of sectors from w/in invstmt bank’g, pvt equity LLC upon whom process against it may Management LLC. Office loc.: NY Co. or sell side rsrch environ. All stated exp be served. SSNY shall mail process to LLC formed in DE: 8/1/16. NY Sec. of must incl the follow’g: analyz’g & forecast’g Notice of Formation of VertiPark, LLC. State designated agent of LLC upon Arts. of Org. filed with Secy. of State of the LLC at the addr. of its princ. office. acct’g & finan stmts; analyz’g public mrkts, Purpose: Any lawful activity whom process against it may be served incl’g actively follow’g mrkt activity; bld’g NY (SSNY) on 8/26/16. Office loca- and shall mail process to: c/o Busi- out Excel mdls to properly assess historical tion: NY County. SSNY designated as ness Filings Inc., 187 Wolf Rd., Ste. & projected finan prfrmance, incl’g driv’g agent of LLC upon whom process Notice of Formation of CHALKIN’ SO- 101, Albany, NY 12205. DE addr. of add’l value add analysis w/ valuatn, DCF, & against it may be served. SSNY shall CIAL, LLC Arts. of Org. filed with Secy. LLC: 108 W. 13th St., Wilmington, DE mail process to: 415 W. 45th St., NY, LBO mdl’g; & bld’g, assess’g, & manipulat’g of State of NY (SSNY) on 07/20/16. Of- 19801. Cert. of Form. filed with DE NY 10036. Purpose: any lawful activity. mdls & communicat’g them to internal fice location: NY County. SSNY desig- Sec. of State, 401 Federal St., Dover, mgmt & cross-functional stakeholders. Must nated as agent of LLC upon whom proc- DE 19901. Purpose: any lawful act. also have 1 yr exp wrk’g w/in asset mngr S&L IT CONSULTANTS LLC, Arts. of ess against it may be served. SSNY focused on long/short equity invest’g. Exp Org. filed with the SSNY on shall mail process to David may be gained concurrently. Resumes: ER/ 09/13/2016. Office loc: NY County. Schoonmaker, 428 Broadway, 4th Fl., NOTICE OF FORMATION OF NEOSHO LW, Attn: R-0271, Citadel LLC, 131 S. SSNY has been designated as agent NY, CA 10013. Purpose: Any lawful ac- HOLDING LLC. Application for Authority Dearborn St, 32nd Fl, Chicago, IL 60603. upon whom process against the LLC tivity. filed with the Secretary of State of may be served. SSNY shall mail proc- New York (SSNY) on 9/20/2016. Of- ess to: The LLC, 115 E 57th St, 11th fice location: NEW YORK County. LLC Fl, NY, NY 10022. Reg Agent: Stylianos Notice of Qualification of Montrose formed in MISSOURI on 8/23/2016. PUBLIC & LEGAL NOTICES Ioannidis, 115 E 57th St, 11th Fl, NY, Consulting LLC. Authority filed with NY SSNY has been designated as an NY 10022. Purpose: Any Lawful Pur- Dept. of State on 8/19/16. Office lo- agent upon whom process against it pose. cation: NY County. Princ. bus. addr.: may be served. The Post Office ad- Notice of Formation of HARLEM 155 E. 79th St., #9, NY, NY 10075. dress to which the SSNY shall mail a MUSIKA LLC Arts. of Org. filed with Notice of Formation of Renarde, LLC, LLC formed in DE on 7/18/16. NY copy of any process against the LLC Secy. of State of NY (SSNY) on a domestic limited liability company. Sec. of State designated agent of LLC served upon him/her is: DAVID SIMS, 09/02/16. Office location: NY County. Articles of Organization were filed with upon whom process against it may be 202 S. WOOD ST., NEOSHO, MO Princ. office of LLC: 547 W. 149th St., the Secretary of State of New York served and shall mail process to: CT 64850. The principal business ad- NY, NY 10031. SSNY designated as (SSNY) on 06/14/16. NY Office loca- Corporation System, 111 8th Ave., dress of the LLC is: 56 LEONARD ST., agent of LLC upon whom process tion: New York County. SSNY is desig- NY, NY 10011, regd. agent upon UNIT 17AW, NEW YORK, NY 10013- against it may be served. SSNY shall nated as agent upon whom process whom process may be served. DE 3290 MISSOURI address of LLC is: mail process to Friedberg Pinkas PLLC, against the LLC may be served. SSNY addr. of LLC: 1209 Orange St., Wil- 11417 OAK RD., NEOSHO, MO 64850 767 Third Ave., 31st Fl., NY, NY shall mail a copy of process to the LLC mington, DE 19801. Cert. of Form. Certificate of LLC filed with Secretary 10017, regd. agent upon whom and at at 122 East 82nd Street, Suite 1B, New filed with DE Sec. of State, 401 Feder- of State of MISSOURI located at: 600 which process may be served. Purpose: York, NY 10028. Purpose: For any al St., Dover, DE 19901. Purpose: all W. MAIN ST., RM. 322, JEFFERSON Any lawful activity lawful purpose. lawful purposes. CITY, MO 65102.

46 | CRAIN’S NEW YORK BUSINESS | OCTOBER 10, 2016 TO PLACE A CLASSIFIED AD, CALL 1 800 444 6007 OR VISIT CRAINSNEWYORK.COM

PUBLIC & LEGAL NOTICES

NOTICE OF FORMATION of Big Tie Con- Notice of Application for Authority of Pri- Notice of Formation of York Distressed Notice of Qualification of ELMC Equity, struction LLC. Arts of Org filed with vate Luxury Collection New York LLC Asset Holdings, LLC. Arts. of Org. filed LLC. Authority filed with NY Dept. of Secy. of State of NY (SSNY) on filed with the Secy. of State of NY with NY Dept. of State on 8/23/16. Of- State on 9/16/16. Office location: NY 7/28/2016. Office location: NY Coun- (SSNY) on 1/15/14. Formed in DE fice location: NY County. Sec. of State County. LLC formed in DE on 7/1/15. ty. SSNY designated agent upon whom 1/14/14. Office loc.: New York Coun- designated agent of LLC upon whom NY Sec. of State designated agent of process may be served and shall mail ty. SSNY is designated as agent of process against it may be served and LLC upon whom process against it may copy of process against LLC to princi- LLC upon whom process against it may shall mail process to: c/o York Dis- be served and shall mail process to the pal business address: 600 10th Ave be served. The address SSNY shall tressed Asset Holdings, LLC, 767 Fifth principal business address: 260 Madi- Apt. 1RS, NY, NY 10036. Purpose: any mail copy of process to is 240 E. 55th Ave., 17th Fl., NY, NY 10153, principal son Ave., 15th Fl., NY, NY 10016, Attn: lawful act. St., 2H, New York, NY 10022. The of- business address. Purpose: all lawful Richard Fleder. DE address of LLC: Na- fice address required to be maintained purposes. tional Corporate Research, Ltd., 850 in DE is 2711 Centerville Rd., Ste. New Burton Rd., Ste. 201, Dover, DE 27 EAST 11TH STREET NY LLC. App. for 400, Wilmington, DE 19808. Cert. of Notice of Qualification of USF Holland 19904. Cert. of Form. filed with DE Auth. filed with the SSNY on 05/16/16. formation filed with the Secy. of State, LLC. Authority filed with NY Dept. of Sec. of State, 401 Federal St., Dover, Originally filed with Secretary of State of John G. Townsend Bldg., 401 Federal State on 9/22/16. Office location: NY DE 19901. Purpose: any lawful activity. Delaware on 05/11/16. Office: New York St., Ste. 4, Dover, DE 19901. Pur- County. Princ. bus. addr.: 700 S. Waverly County. SSNY designated as agent of the pose: Any lawful activity. Rd., Holland, MI 49423. LLC formed in LLC upon whom process against it may DE on 7/31/16. NY Sec. of State desig- Notice of Formation of A.R Community be served. SSNY shall mail copy of process nated agent of LLC upon whom process Consultants LLC. Arts of Org. filed with Notice of Qualification of North to the LLC, c/o Brian Cuneo, AYCO Co LP, against it may be served and shall mail Secretary of State of NY (S.S.N.Y.) on Stardust LLC. Authority filed with NY 321 Broadway, Saratoga Springs, NY process to: c/o CT Corporation System, 09/27/16. Business location: New Dept. of State on 9/1/16. Office loca- 12866. Purpose: Any lawful purpose. 111 8th Ave., NY, NY 10011, regd. York county. S.S.N.Y. designated as tion: NY County. Princ. bus. addr.: 40 agent upon whom process may be agent of LLC upon whom process E. Main St., Newark, DE 19711. LLC served. DE addr. of LLC: 1209 Orange against it may be served. LLC shall formed in DE on 4/28/14. NY Sec. of Notice of Formation of AMERICAN St., Wilmington, DE 19801. Cert. of mail copy of process to 444 E. 86th State designated agent of LLC upon HEALTHCARE ANALYTICS LLC Form. filed with DE Sec. of State, 401 Street, 10F, NY NY 10028. Purpose: whom process against it may be served Arts. of Org. filed with Secy. of State of Federal St., Dover, DE 19901. Purpose: Any lawful activity. and shall mail process to: c/o CT Cor- NY (SSNY) on 02/05/16. Office loca- all lawful purposes. poration System, 111 8th Ave., NY, NY tion: NY County. SSNY designated as 10011, regd. agent upon whom proc- agent of LLC upon whom process Notice of Qualification of BROOKS ess may be served. DE addr. of LLC: Notice of Qual. of Axonic Credit Opportu- against it may be served. SSNY shall BROTHERS RESTAURANT, LLC The Corporation Trust Co., 1209 Or- nities Trading, L.P., Auth. filed Sec’y of mail process to Robert Pillartz, 244 5th Appl. for Auth. filed with Secy. of State ange St., Wilmington, DE 19801. Cert. State (SSNY) 4/27/16. Off. loc: NY Co. Ave., Ste. 2455, NY, NY 10001. Pur- of NY (SSNY) on 08/17/16. Office loca- of Form. filed with DE Sec. of State, LP org. in DE 4/26/16. SSNY desig. as pose: Any lawful activity. tion: NY County. LLC formed in Dela- 401 Federal St., Dover, DE 19901. Pur- agent of LP upon whom proc. against it ware (DE) on 12/17/12. Princ. office of pose: all lawful purposes. may be served. SSNY shall mail copy of LLC: 346 Madison Ave., NY, NY proc. to Att: Clayton DeGiacinto, 390 10017. SSNY designated as agent of Notice of Qualification of McEvoy Prop- Park Ave., NY, NY 10022. DE off. addr.: erties NY36 LLC. Authority filed with NY LLC upon whom process against it may Notice of Qualification of SAGEWIND CSC, 2711 Centerville Rd., Wilmington, Dept. of State on 9/29/16. Office loca- be served. SSNY shall mail process to CAPITAL LLCAppl. for Auth. filed with DE 19808. Cert. of LP on file: SSDE, tion: NY County. Princ. bus. addr.: 680 c/o Corporation Service Co. (CSC), 80 Secy. of State of NY (SSNY) on Townsend Bldg., Dover, DE 19901. 2nd St., San Francisco, CA 94107. LLC State St., Albany, NY 12207. DE addr. 09/07/16. Office location: NY County. Name/addr. of each gen. ptr. avail. at formed in DE on 7/6/16. NY Sec. of of LLC: c/o CSC, 2711 Centerville Rd., LLC formed in Delaware (DE) on SSNY. Purp: any lawful activities. State designated agent of LLC upon Ste. 400, Wilmington, DE 19808. Cert. 09/02/16. SSNY designated as agent whom process against it may be served of Form. filed with Secy. of State, Div. of LLC upon whom process against it LANDMARK REGAL LLC, Arts. of Org. and shall mail process to: CT Corpora- of Corps., John G. Townsend Bldg., may be served. SSNY shall mail proc- filed with the SSNY on 07/28/2016. tion System, 111 8th Ave., NY, NY 401 Federal St. - Ste. 4, Dover, DE ess to Attn: Steven M. Lefkowitz, 667 Office loc: NY County. SSNY has been 10011, regd. agent upon whom proc- 19901. Purpose: Any lawful activity. Madison Ave., Fifth Fl., NY, NY 10065. designated as agent upon whom process may be served. DE addr. of LLC: DE addr. of LLC: Corporation Service ess against the LLC may be served. 1209 Orange St., Wilmington, DE Co., 2711 Centerville Rd., Ste. 400, SSNY shall mail process to: The LLC, 2 19801. Cert. of Form. filed with DE Notice of Qualification of MDF Apthorp Wilmington, DE 19808. Cert. of Form. River Terrace Apt. 10S, NY, NY 10282. Sec. of State, 401 Federal St., Dover, LLC. Authority filed with NY Dept. of filed with Secy. of State, Div. of Corps., Purpose: Any Lawful Purpose. DE 19901. Purpose: all lawful purpos- State on 9/29/16. Office location: NY John G. Townsend Bldg., 401 Federal es. County. LLC formed in DE on 8/18/16. St. - Ste. 4, Dover, DE 19901. Pur- Notice of Formation of Sherri Sklar NY Sec. of State designated agent of pose: Any lawful activity. Strategies LLC amended to LLC upon whom process against it may Notice of Formation of MUPVENT GROWTHTERA LLC. Arts. of Org. filed be served and shall mail process to: Na- Partners LLC. Arts of Org filed with Secy. CIMB ASSOCIATES LLC Articles of Org. with Secy. of State of NY (SSNY) on tional Registered Agents, Inc. (NRAI), of State of NY (SSNY) on 8/8/2016. Of- filed NY Sec. of State (SSNY) 4/4/03. Office location: NY County. 111 8th Ave., NY, NY 10011, regd. fice location: NY County, SSNY designat- 7/13/2016. Office in NY Co. SSNY SSNY designated as agent of LLC upon agent upon whom process may be ed agent upon whom process may be desig. agent of LLC upon process may be whom process against it may be served. DE address of LLC: c/o NRAI, served and shall mail copy of process served. SSNY shall mail copy of process served. SSNY shall mail process to: 160 Greentree Dr., Ste. 101, Dover, DE against LLC to principal business ad- to 305 E. 85th St., Apt 5A, NY, NY c/o Sherri Sklar, 181 E. 73rd St., #15- 19904. Cert. of Form. filed with DE Sec. dress: 66 Crosby St. #4A, NY, NY 10028, which is also the principal busi- A, NY, NY 10021. Purpose: any lawful of State, 401 Federal St., Dover, DE 10012, Purpose: any lawful act. ness loc. Purpose: Any lawful purpose. activity. 19901. Purpose: all lawful purposes.

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OCTOBER 10, 2016 | CRAIN’S NEW YORK BUSINESS | 47 To place your listing, visit crainsnewyork.com/execmoves

PROFESSIONAL SERVICES INSURANCE REAL ESTATE

Guidepost Solutions LLC HUB International Limited Stribling & Associates Daniel Burstein, Marc Cohen, 49, was Dennis Cusack, recently 38, joined Guidepost NEW promoted to President. appointed Manager of Solutions LLC as Senior Downtown Brokerage Managing Director. He He previously held the was formerly Executive position of President and and resident expert on Deputy Superintendent all things Downtown, HIRE? CEO, HUB International and Acting Chief of Northeast, Regional Pres- oversees the firm’s Staff at New York State Chelsea and Tribeca Department of Financial Services. He will ident, HUB US East. He will be responsible Share the news with oversee the Financial Institutions practice for driving continued growth and produc- offices and agents. He brings over a decade for Guidepost Solutions and will work tivity improvements across HUB’s offices of experience in luxury residential sales, the New York business closely with clients focusing in the areas of throughout North America. Cohen holds having sold condos, co-ops, townhouses regulatory investigations and enforcement, communuty. and new developments in neighborhoods regulatory compliance, litigation support, nearly three decades of insurance industry and internal investigations. experience. across Manhattan. Announce new hires, REAL ESTATE Talent Inc. Himmel + Meringoff Properties promotions and board Stribling & Associates Hillary Garris, 38, Jason Vacker, 33, was appointments with joined Talent Inc. Danielle Garofalo, promoted to President as Vice President of has joined Stribling & and CEO. He previously Associates as Director Finance, where she held the position of CRAIN’S EXECUTIVE MOVES of Digital and Agent is responsible for Chief Operating Officer. Strategy. Danielle will developing the com- As president and chief focus on increasing Print and Online pany’s financial-man- Stribling and Associates’ executive officer, Mr. Vacker will have agement strategy and execution, with a corporate digital footprint and work directly Placement Guaranteed focus on accelerated-growth initiatives. with agents to enhance their own connectiv- responsibility for management, She is based in the company’s New York ity and outreach. Stribling & Associates, Ltd leasing, operations, financial reporting and City headquarters. She was formerly is a premier residential real estate firm with administration for the company’s entire www.crainsnewyork.com/execmoves Vice President, Finance & Operations at over 300 agents throughout three locations 14-building, 2 million-square-foot commer- Piano. in Manhattan and one in Brooklyn. cial portfolio.

48 | CRAIN’S NEW YORK BUSINESS | OCTOBER 10, 2016

P048_CN_20161010.indd 48 10/6/2016 12:06:20 PM GOTHAM GIGS

MAKING WAVES: Harvey Burgett, a composer, scored BY LANCE PIERCE the music he’ll use in his routine.

Sync or swim New York’s only male competitor in a female-dominated sport goes for gold—at age 72 HARVEY BURGETT lenty of New Yorkers swim for exercise. But He discovered the sport three years ago while taking Harvey Burgett takes to the water in ways that a swim class at Lehman College, where Mohammed was AGE 72 most guys shun. “My routine starts with my his teacher. Last year Burgett won his first national gold BORN Franklinville, NY hand over my heart—and then there are a whole medal for his age group. This month he’ll try again at the RESIDES Upper West Side Pbunch of gestures and movements, starting with a split U.S. Masters Championship in Tucson, Ariz. EDUCATION B.M. in music from walkover, then a kip, a ballet leg, a pinwheel and, finally, a In order to win over the judges, Burgett must perform Stetson University; S.M.M. from barracuda,” he said. certain technical moves, as a figure skater Union Theological Seminary Burgett, a 72-year-old composer and It’s like playing would, and then do a freestyle solo rou- STUDENT AND TEACHER Burgett music teacher by day, is New York’s only “ tine. For that, he’ll be accompanied by a has taught music at Stetson, Boston male competitive synchronized swim- water polo where piece he composed for a wedding several University and Rollins College. mer. “You hear people say someone is someone isn’t years ago, called “Two Hearts as One.” He studied in Paris under Nadia Boulanger, a renowned organist who one of a kind. Harvey really is,” said his The musical accompaniment comes from trying to kill you” planned the music for the wedding coach, Dale Mohammed, who runs the his more than 50-year-long career as an of Grace Kelly and Prince Rainier of Gotham Synchro swim team. organist. He has played in the Park Ave- Monaco. He also studied under Sir Men account for no more than 2% of all competitive nue Synagogue and the Church of St. Thomas More, and Peter Maxwell Davies, a composer synchronized swimmers. That’s in part because women are he estimates he has written nearly 1,000 works of liturgical, who served as master of the queen’s music in Britain, the equivalent in more buoyant. Male swimmers tend to have less fat and choral and chamber music, plus one symphony. music to poet laureate. more muscle. And while certain male-dominated Olympic There’s little, if any, money to be made in synchronized SWIM SCENE Burgett performs sports including boxing and weightlifting have female divi- swimming. Burgett is paying his own way to the champi- synchronized swimming alone as sions, at the highest levels of synchronized swimming, men onship. Still, he’s found ways to make his life as a musician well as in a team of seven. Two compete against women. For whatever reason, men who support his swimming. An elderly member of a church he men often participate, though they show a knack for the sport as teenagers often drift into the plays at recently invited him to join her for a cruise and don’t compete. One is a partially paralyzed veteran of the war in rougher game of water polo. offered him a first-class cabin close to a private swimming Afghanistan who likes the sport for Burgett said synchronized swimming is “like playing pool. “I’ll be spending my time there practicing for the the range of movement it provides.

BUCK ENNIS water polo where someone isn’t trying to kill you.” tournament,” he said. — AARON ELSTEIN

October 10, 2016 | CRAIN’S NEW YORK BUSINESS | 49

P049_CN_20161010.indd 49 10/7/16 3:56 PM SNAPS

Stepping out for a night at the opera The Metropolitan Opera opened its 50th season Sept. 26 with a new production of Wagner’s epic tragedyTristan und Isolde, followed by a black-tie dinner. Doyennes of New York society, opera stars and entertainment luminaries were among the guests who attended the gala, which raised $4.6 million.

Plácido Domingo Simon Rattle Cecile Zilkha, Metropolitan Opera Tenor , conductor , tenor Stuart Skelton Ása Guðjónsdóttir board member, Ann Ziff, board and violinist at the gala chairman, and Mercedes Bass, board after the premiere, in which Rattle and Skelton had performed. vice chairman, at the gala, held in Damrosch Park.

PENCIL Raising green for Green-Wood pushes to boost education

Scott Beattie, president and CEO of Elizabeth Arden, and Howard Chatzinoff, a partner at Weil, Gotshal & Manges and PENCIL board chairman, at a Sept. 28 benefit for the nonprofit, which connects businesses with schools to help improve education. Marty Markowitz, NYC & Company vice president and former Brooklyn borough president with three representatives from the design firm Archigrafika—Michael Gerbino, principal and creative director; Carey Platt, principal; and Michael Carsten, senior designer—at a Sept. 14 fundraiser for Green-Wood Cemetery, a national historic landmark in Brooklyn.

Geoffrey C. Ward, award-winning documentary scriptwriter, author, historian and event honoree, with his frequent collaborator, filmmaker Ken Burns, at the Louise Phillips Forbes, a broker at Halstead Property; Nancy Ruddy, cofounder Green-Wood event, of CetraRuddy and event honoree; Gregg Betheil, PENCIL president; and Josh which raised $140,000. Schuster, managing principal at Silverback. The PENCIL gala, held at Cipriani Wall Street, raised $1.5 million.

PENCIL, MICHAEL SHEEHAN, JULIE SKARRATT/METROPOLITAN OPERA PENCIL, MICHAEL SHEEHAN, JULIE SKARRATT/METROPOLITAN SEE MORE OF THIS WEEK’S SNAPS ONLINE AT CRAINSNEWYORK.COM/SNAPS. GET YOUR GALA IN SNAPS. EMAIL THERESA AGOVINO, [email protected].

50 | CRAIN’S NEW YORK BUSINESS | October 10, 2016

P050_CN_20161010.indd 50 10/7/16 3:57 PM PHOTO FINISH

Booking down the track n an early October morning, a quiet hum heralded the arrival of a motorized cart rising out of the New York Public Library cellar Oand into the Rose Reading Room. The midtown library’s new $2.6 million “book train” traverses 950 feet of track to deliver tomes to the circulation desk in under five minutes—lightning speed compared with the conveyor belt it is replacing, which made a similar trip in about 30 minutes. The new trolley is part of the two-year, $12 million restoration of the library’s reading room, which reopened to the public Oct. 5. Library officials had initially planned to move the stacks to New Jersey and trans- form the underground storage space beneath Bryant Park into a lending library. Faced with fierce opposition from an array of critics— including Mayor Bill de Blasio and author Salman Rushdie—they instead decided to dig deeper, adding space for an additional 2.5 million volumes and bringing the total storage capacity to 4 million books. — PETER D'AMATO PETER D’AMATO

October 10, 2016 | CRAIN’S NEW YORK BUSINESS | 51

P051_CN_20161010.indd 51 10/7/16 3:59 PM Peter Manning FOUNDER PETER MANNING NYC

An idea that measures up.

Understanding what’s important.

Peter Manning came to M&T Bank with little more than a concept for his business. But it was a big one – a clothing line for men

5'8" and under. We understood his vision and customized a plan to get his dream off the ground. And today, this idea is thriving.

Our eagerness to help businesses like Peter Manning is why M&T is a leading SBA lender1 in the country and why we’ve been

recognized by Greenwich Associates for excellence in small business banking.2 To learn how M&T can help your business,

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Equal Housing Lender. 1According to statistics released by the U.S. Small Business Administration (SBA) for total approved loans through the SBA’s 7(a) lending program during the federal fiscal year ending 9/30/2015. 2Based on the 2015 Greenwich Excellence Awards in Small Business Banking. ©2016 M&T Bank. Member FDIC.

12794_’16 Hudson City Success Stories Print – Peter Manning / Live: 10.5 x14.125 Trim: 10.875 in. x 14.5 in. / Bleed: 11.125 x14.75 Crain’s Added Value Full Page