TOP STORIES Remembering the CNBC.com breaks extraordinary —Alair away from MSN; Townsend can it compete? on notables who died in PAGE 2 2006 ® Page 11 Apparel makers hope to cash in on department store revival this season VOL. XXII, NO. 49 WWW.NEWYORKBUSINESS.COM DECEMBER 4-10, 2006 PRICE: $3.00 PAGE 3 Grand Central lounge gets lavish BigNYfirms interior renovation PAGE 6 It is time for seen as LBO Mayor Bloomberg to put tax cuts on his agenda candidates EDITORIAL, PAGE 10 Over a dozen local didates. An independent research Construction firms firm, CreditSights, reckons there companies are likely are no fewer than 217 LBO-wor- take on global thy corporations. projects; top targets of private Candidates can be found in vir- equity buyers tually every sector of the economy property managers and include some of the nation’s REAL ESTATE, PAGE 17 biggest corporations. Even the BY AARON ELSTEIN bluest chip of them all, IBM, with a market capitalization of $140 BUSINESS LIVES more than a dozen New York billion, has not escaped specula- area companies,including such big tion. Recently an analyst at San- MERRY STRESS-OUT names as Marsh & McLennan,Liz ford C. Bernstein & Co. insisted Busy New Yorkers cope Claiborne, Avis Budget and Vor- that Big Blue would make a great with December nado Realty Trust, are increasingly See NY FIRMS on Page 38 time crunch being seen as likely candidates for PAGE 39 leveraged buyouts. JACOB PECHENIK The speculation is being fed by wants to hire two or an explosion in LBO deals by pri- three more people vate equity firms such as the Black- for YellowJacket Software by the stone Group and Kohlberg Kravis end of the year. Roberts & Co. So far this year, there have been nearly 950 LBOs—including the biggest two buck ennis ever—in a $357 billion avalanche of such transactions, according to AT DEADLINE research firm Dealogic. “It’s all people want to talk THE CITY’S INDEPENDENT Rare species: about,”says Credit Suisse bond an- BUDGET OFFICE is expected to alyst Ira Jersey,who has cobbled to-

issue a report this week gether his own list of 20 LBO can- jennifer chiu comparing the tax burden in New York to that in other tech workers major cities. The IBO study is a more comprehensive version Software, financial ENGINEERING A DEMAND Math-savvy of one issued in the mid-1990s, grads fill finance, biotech jobs PAGE 2 which found that New York firms desperately Hospitals seek refuge taxes were more than three times higher than the average pursue talented the charts,” says Shawn Banerji, a taxes of 10 other large cities. technology sector associate at Rus- from Berger verdicts system designers sell Reynolds Associates, an exec- NEW YORK CITY HEALTH utive search firm. Facilities cited by mission in U.S. district court. COMMISSIONER Thomas BY AMANDA FUNG For the first time since the dot- “I’m talking to about a dozen Frieden is holding last-minute com boom,the city’s IT job growth closing commission hospitals—five or six in the New meetings with restaurant talented computer program- rate has outpaced the national rate. York City region—that are consid- executives in anticipation of mers are at the top of companies’ The number of computer systems mull Ch. 11, lawsuits ering lawsuits,” says Jeffrey Rug- Tuesday’s Board of Health wish lists this holiday season. design jobs in New York City grew giero, a health care lawyer who is a vote on whether to ban trans Executives from companies of 6.1% in the first 10 months of the BY GALE SCOTT partner at Arent Fox in Manhat- fats in restaurants and require all sizes are hard-pressed to fill year to 38,000, compared with a tan.“They are waiting to see if this some eateries to post empty workstations as demand for 5.6% gain nationwide, according now that Governor-elect Eliot moves ahead, and if it does, we’ll nutritional information on information technology workers to the state Department of Labor. Spitzer has joined Gov. George see hospitals file before the end of menus. Dr. Frieden has continues to heat up across the Online job postings for IT po- Pataki in endorsing the Berger the year.” See AT DEADLINE on Page 2 city’s economy. sitions at major corporations are up commission’s report, the odds are The commission headed by in- “IT recruitment has been off 60% from a year ago, according to high that its recommendations on vestment banker Stephen Berger, a job market index compiled by restructuring the state’s health sys- which was created by the governor Pace University and SkillProof tem will become law on Jan. 1. 18 months ago,recommends clos- Inc., an employment data provider But the game’s not over yet. ing nine institutions and under- that scans corporate career Web Some hospitals are seeking taking reorganizations that will sites for job openings. refuge in bankruptcy, a legal trend affect another 57. These actions ELECTRONIC EDITION Job growth has been fueled by that could grow. Other health sys- will eliminate 7,000 jobs in New increased hiring at tech companies tems set for closing or restructur- York and reduce the number See RARE on Page 34ing intend to challenge the com- See SEEKING on Page 37 NEWSPAPER AT DEADLINE

Continued from Page 1 GOVERNOR-ELECT ELIOT SPITZER indicated that he is willing to HAS QUIETLY FORMED a policy compromise on the deadline for advisory committee to study the phasing out trans fats, but he is issue of “smart growth,” which is firm on the menu requirement. aimed at reducing development Separately, industry lobbyists sprawl.The leadership of the say they have convinced at least panel does not include any a dozen City Council members builders, but one member says it to support legislation that would is not reflexively opposed to address the two proposals in a development.The committee way favorable to restaurants. will suggest ways that the state could encourage growth near NEGOTIATIONS ARE HEATING UP existing infrastructure. IN THE EFFORT TO CREATE a 300,000-square-foot showroom J.P. MORGAN CHASE & CO. WILL and expo site in Jamaica, HAVE TO ANSWER for its decision Queens, for China-based not to allow a customer to access wholesalers. Myles Matthews, a $34 million account that was president of the Global Trade & frozen by the U.S. government Technology Center and a in 1992.The account holder, AY leading proponent of the Bank, was suspected of having project, travels to China this ties to former Serbian President week to join Yuet-fung Ho, vice Slobodan Milosevic. AY Bank president of international says Chase refused to release the business development for the money even after the assets were New York City Economic unfrozen by President George READY TO GO: Ebele Emelumadu, who’s finishing Development Corp.The two W. Bush in 2003. A Manhattan her electrical engineering will meet with U.S. consular Supreme Court judge rejected degree, has accepted a job as officials to try to smooth the J.P.Morgan’s motion for a a commodities broker. visa-application process for dismissal last week.

potential Chinese investors. buck ennis CITRIX SYSTEMS HAS EXPANDED THE NEIGHBORHOOD ECONOMIC BY 5,400 SQUARE FEET for a total DEVELOPMENT Advocacy Project of 17,100 square feet on the is blasting HSBC Bank USA, 20th floor at 11 Penn Plaza, J.P.Morgan Chase & Co. and between West 31st and West other banks for underwriting 32nd streets.The asking rent in Nerds No.1 for jobs “pay stub” loans that tax the neighborhood is $61 a preparation firms make to low- square foot, according to CB income New Yorkers who need Richard Ellis. Colliers ABR Math-savvy engineering grads fill finance, biotech posts quick cash.The high-cost loans represented the tech company in are based on estimates of the 10-year lease; landlord borrowers’ future tax refunds Vornado Realty Trust BY SAMANTHA MARSHALL and earned income tax credits. represented itself. ■ the last thing ebele emelumadu will have to worry about when she graduates from CORRECTIONS The Cooper Union in June is finding a job.The electrical engineering student’s talents are in Barry Gosin is chief executive of real estate brokerage Newmark Knight Frank. His title was misstated in the Nov. 27 story “Firms may leave city as tax breaks expire.” such demand that she’s had her first full-time job lined up since this summer. Minneapolis-based Manhattan Toy sells about 90 different items from its Groovy Girls line at But she won’t be practicing in her field of study. After weighing several opportunities for FAO Schwarz on Fifth Avenue. The company’s relationship with FAO was misstated in the finance jobs at major institutions, she accepted a position as a commodities broker with J.P. Nov. 13 story “FAO turnaround hardly child’s play.” Morgan Chase. “This is exactly what I wanted,” says Nigerian-born Ms. Emelumadu, who will specialize in See NERDS NO. 1 on Page 32 THIS WEEK IN CRAIN’S 41 SMALL BUSINESS ------8 ALAIR TOWNSEND ------11

THE INSIDER------12 CNBC bringing up the rear

WEEK IN REVIEW ------14 CNBC.com aims The venture boasts a staff NEIGHBORHOOD of 40—many of them TRAFFIC JAM to beat rivals with poached from top rivals—lots JOURNAL------16 of cool features and a treasure How business Web sites stack up. bells and whistles, trove of video. The problem: SITE UNIQUE VISITORS1 REAL ESTATE REPORT ------17 high-end audience The all-new CNBC.com is MSN Money 10,864,000 PROPERTY OWNERS ------24 late to the game.The site must Yahoo Finance 10,806,000 play catch-up with the likes AOL Money & Finance DEALS------27 10,603,000 BY MATTHEW FLAMM of its former partner, MSN Dow Jones & Co. 5,923,000 THE WEEKS AHEAD ------30 Money.At the same time, Fox Forbes 5,138,000 in the heady days of the Internet News is preparing to chal- CNN Money 5,117,000 CLASSIFIEDS ------36 bubble, day traders, venture capital- lenge CNBC with the launch Bankrate.com 2,923,000 ists and Wall Street brokers all of its own business channel. CNBC.com 2 BUSINESS LIVES------39 seemed to own televisions that only “[CNBC.com] is behind 145,000 1-October 2006. 2-Hosted by MSN Money from 2001 CORPORATE LADDER------41 showed CNBC. everybody else,” says Chris through November 2006. Those days are over, but execu- Roush, a University of North Source: ComScore Media Metrix EXECUTIVE MOVES------43 42 tives at the NBC-owned cable busi- Carolina journalism profes- BOB LAPE ------43 ness-news network hope to become sor who tracks business news. a groundbreaking force once again, Despite the drastic falloff in view- 2005, off net revenues of $528 mil- vol. xxii, no. 49, december 4, 2006—Crain’s New York Business (issn 8756-789x) is pub- lished weekly by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Period- this time on the Internet. Starting ership since the bubble burst,CNBC lion, according to Kagan Research. icals postage paid at New York, N.Y. and additional mailing offices. Postmaster: Send address today, CNBC.com launches as a has remained highly profitable be- After the market crash, CNBC changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a freestanding Web site, a status it cause advertisers are willing to pay pulled back from the Web and copy, $59.79 one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents gave up five years ago when it top dollar to reach its elite audience. struck a lucrative licensing deal with copyright 2006 by Crain Communications Inc. All rights reserved. merged with the Microsoft site then Cash flow is projected to reach Microsoft that seemed a safer bet known as MoneyCentral.com. $298 million this year, up 10% from than a stand-alone site to parent

2 | Crain’s New York Business | December 4, 2006 BY THE NUMBERS Fashion favorites HARD LANDING FOR LANDLINES nerable; they’ve been on shaky ma bell is rolling over in her Department store ground all year. grave. Given the proliferation of holiday shoppers “Apparel isn’t necessarily high cell phones and the advent of on the list of gifts to buy,” says Lori telephone service expected to snap up Holliday Banks, a senior fashion over the Inter- analyst at consulting firm Tobé. net, millions of Polo and PVH “Everyone wants the new [Ninten- Americans are do] Wii or to sit on line for three calling their BY ELISABETH BUTLER days for the PlayStation 3.” regional phone com- istockphoto shoppers stormed department Lurking gloom? panies to cut off their landlines. stores last week,scrambling for hol- even apparel companies toasting Verizon customers are particu- iday bargains and checking off their their department store sales today larly aggressive cord-cutters: Christmas lists.Now,with 20 shop- may yet encounter the Grinch. More than 2 million of them ping days left, executives at Man- Wal-Mart Stores Inc. cast a gloom have dropped service over the hattan-based apparel firms are over the industry by reporting a loss past year. The following charts waiting to see just how big their haul in same-store sales in November. show each company’s total num- will be as consumers decide what to Specialty retailers such as Ann Tay- ber of residential landlines, in stack under the tree this year. lor and Abercrombie & Fitch re- millions. Many of New York’s clothiers ported same-store losses, too. have had a good year, with stock Ralph Lauren is one clothing VERIZON

prices of several hovering near 52- brand sure to show up alongside the ap images week highs. A good fourth quarter flat-screen television sets in Santa’s BIGGER CROWDS are flocking to Macy’s and other department stores this holiday season. could push them to new peaks. sleigh this year.The popular fashion The biggest winners will proba- house offers styles to fit nearly all bly be Polo Ralph Lauren Inc. and budgets,from its relatively inexpen- Liz Claiborne’s namesake brand attract a buyer this year, may find Phillips-Van Heusen Corp., as lo- sive $30 Polo Jeans Co. T-shirt to could help it ring up bigger fourth- disappointment on Christmas goed sweaters and dress shirts are its pricey $1,700 Purple Label suit. quarter sales.However,even a great morning. Brian McGough, a Mor- expected to fill mountains of pack- “Ralph is just a machine; the holiday is unlikely to help the cloth- gan Stanley analyst,initiated cover- ages this year. Liz Claiborne Inc., brands are powerful,” says Brad ier win back the floor space it lost age on the company with an “un- which owns the recently rejiggered Stephens, a Morgan Keegan ana- over the years. Macy’s West has al- derweight” rating. Analysts expect Liz Claiborne line and other lyst who covers retail and fashion. ready pulled the plug on Liz Clai- the $4.7 billion company to gener- brands,could also see robust depart- Analysts expect Ralph Lauren borne for the spring, according to ate earnings of 46 cents per share for ment store sales as bigger crowds to generate sales of $1.1 billion and investment firm Goldman Sachs. the fourth quarter, down from 51 flock to Macy’s,Bloomie’s and Saks. earnings per share of 92 cents this cents last year. Sales in department stores open quarter,up from $933.2 million and Buying Ellen Tracy Designer Kenneth Cole, who at least a year jumped 4.6% in No- 84 cents per share during the com- “their business is improving spent 2006 overhauling his two AT&T vember, partially on the strength of parable 2005 period. slowly, but it’s not going to make a main brands, Kenneth Cole New Black Friday, according to consult- Shoppers also put Phillips-Van dramatic change in real estate,”says York and Kenneth Cole Reaction, ing firm Retail Forward. Federated Heusen near the top of their Tobé’s Ms. Banks. For the fourth will need more than a cupful of Department Stores and Saks Inc. Christmas lists. As America’s quarter, analysts expect the $5 bil- Christmas cheer to beat expected led the growth with respective in- largest shirtmaker and owner of the lion company to report earnings of earnings of 39 cents per share, up creases of 8.5% and 7.2%. fashionable Calvin Klein brand, 97 cents per share, a 31% increase just two cents from the year-earlier Still, a few apparel companies Phillips-Van Heusen is expected to over the year-earlier period. quarter. will get more coal than candy in generate $527 million in sales this Shoppers are snapping up styles Still, with four weeks to go, re- their stockings,with no single fash- quarter, about 25% of its anticipat- from the firm’s Ellen Tracy line, tail executives know that anything ion trend—like ponchos—driving ed sales for the year. which is performing well at Saks can happen as consumers hit the sales this year, and electronics top- Other clothiers are under more Fifth Avenue.“We’ve seen substan- stores with their shopping lists ping wish lists. Jones Apparel pressure to make this holiday sea- tial turnaround there,”says Stephen again this week. Group Inc. and Kenneth Cole Pro- son bright. Sadove, chief executive of Saks Inc. ductions Inc. are particularly vul- A well-received makeover for Jones Apparel, which failed to COMMENTS? [email protected] BELLSOUTH with business news site

company General Electric. The expands a category that frequently hosted every half- contract ended recently, which sells out its ad space. hour by the channel’s opened the door for CNBC to join “Will they be able to go head- anchors; blogs, charts, the stampede to the Web. to-head with Yahoo Finance out of and analysis; and a de- Its new site now needs to wrest the gate?” asks Sarah Baehr, vice tachable ticker that investors away from their favorite president of media for Avenue A | can live on a computer finance-news Web sites, where Razorfish. “Probably not; but screen. many of them keep customized there’s a lot of opportunity for that CNBC President TRACK RECORD: President Mark portfolios. CNBC.com must also kind of inventory.” Mark Hoffman says QWEST build an audience far larger than the the site will attract the Hoffman says Video game CNBC.com will create cable channel’s. Its top-rated same influential audi- good opportunities shows, Street Signs and Power cnbc.com insists that it will ence that watches the for advertisers.

Lunch, average only 276,000 view- change the game by coming in with network—a group he neff david ers, according to Nielsen Media more video than anyone else—just says is larger than rat- Research. when advertisers are hungering for ings indicate.Nielsen doesn’t meas- Mr. Hoffman says all the “[CNBC] is a good brand with it.The site’s prime selling points in- ure viewing in places like trading strengths of the network will trans- a quality product,” comments Jim clude a tagging system that lets floors and health clubs, where the late to the Internet. Spanfeller, chief executive of users click a firm’s trading symbol channel is popular. “We have outstanding journal- Forbes.com. “However, it remains on a live ticker and access a clip of a “The audience that watches us ists. We have tremendous contacts; to be seen whether it can generate key executive from that company.It in all these high-end locations is we’re doing 850 interviews around an audience on the Web, where can also alert users to the exec’s ap- very hard to find and very hard for the world every week.This is a log- there are more competitors.” pearance on the network. advertisers to have a direct relation- ical and important next step for Some observers say it doesn’t Moreover, the site will offer live ship with,” Mr. Hoffman says.“We CNBC,” he says. matter how tardy CNBC.com is. streaming video; access to CNBC’s will create this same relationship All data were obtained from the phone companies.

Media buyers welcome it,because it archives; a live Market in a Minute on the Web.” COMMENTS? [email protected] jennifer chiu

December 4, 2006 | Crain’s New York Business | 3 IN THE MARKETS HIGHLIGHTS REEL New products, cost fix -1.2% The to cure Pfizer of its ills Bloomberg/ Crain’s New

➡ York Index labor costs by $440 million a year. Alzheimer’s disease and various cancers. fell 1.2%, to Drugmaker shares get The company still faces a number of In all, Pfizer is researching 242 new end the boost from salesforce difficulties. Most important is the drugs—55% more than it had under de- week at patent expiration of velopment in 2000. 367. The cuts; patent losses hurt Lipitor in five years. “We are encour- S&P 500 Sales of the choles- aged that management Index fell terol-lowering drug is facing this formida- 0.3%, BY AARON ELSTEIN totaled $12 billion in ble challenge with a closing at 2005—nearly a quar- sense of urgency and a 1397. t’s been a long time since Pfizer ter of Pfizer’s total mandate to change,” Inc. gave investors much reason to revenues. Morgan Stanley ana- feel good. But concerns over lyst Jami Rubin wrote Sales have slumped over the the eventual loss of in a research note Fri- past two years as patents on sever- Lipitor have long day. Ms. Rubin rates RISERS Ial top-selling drugs expired,and manage- been reflected in the the stock“overweight.” 5-DAY 1-MONTH 3-MONTH CLOSING ment didn’t seem to have a clue about how share price. Pfizer Some rough sled- % CHANGE % CHANGE % CHANGE PRICE to snap the biggest of the big pharmaceu- ranks as one of the ding is ahead in the Schlumberger +4.6% +9.2% +10.5% $68.34 tical companies out of its stupor. cheapest drug stocks near term, though. Under a new team,however,the fog is around these days. It Analysts expect rev- Medco Health +4.1% -1.5% -20.2% $49.90 starting to lift—and so is Pfizer’s share trades at a multiple of enues to drop to $48.1 Schering-Plough +3.2% -0.2% +4.6% $21.93 price.The stock closed Friday at $27.86, less than 13 times next billion in 2007 from a Market cap $200 billion Avis Budget Group +3.1% +10.0% +10.6% $21.35 up 4% for the week and 19% in the year year’s expected earn- projected $48.5 billion this year, according to Tiffany +3.0% +8.6% +21.2% $38.43 to date. Investors should consider this ings, well below the Estimated 2007 P/E ratio 12.9 just the beginning of a long-term re- valuations of Scher- Reuters Estimates. 2005 earnings $8.1 billion bound. ing-Plough, Johnson But per-share earnings SINKERS Last week, the Manhattan-based gi- & Johnson, Merck are expected to bump 5-DAY 1-MONTH 3-MONTH CLOSING ant laid out the case for a rosier future by and Bristol-Myers up to $2.15, compared % CHANGE % CHANGE % CHANGE PRICE promising to launch four homegrown Squibb. with the $2.03 forecast for 2006. NYSE Group -10.9% +30.4% +62.5% $96.50 products annually beginning in 2011. Under Chief Executive Jeffrey Sales are expected to bottom out at E*Trade -8.3% +1.7% -2.2% $23.23 Shorter-term, Pfizer raised earnings Kindler, a former Pfizer lawyer who re- $46.3 billion in 2008, but analysts believe guidance—thanks in part to lower costs placed Henry McKinnell in July, the earnings will continue growing through Nasdaq -8.1% +5.7% +31.7% $37.32 resulting from the drugmaker’s recent de- company is winning over skeptics on Wall that time with help from additional ex- eSpeed -6.9% -4.6% +9.8% $9.17 cision to lay off 20% of its U.S.sales force. Street.Key to that reassessment are drugs pense reductions. Merrill Lynch -6.3% +1.1% +17.6% $86.78 Analysts estimate that the cuts will affect slated to launch early in the next decade. 2,200 people and will eventually reduce They include treatments for obesity, COMMENTS? [email protected]

STOCKS TO WATCH One minute Foul weather, rising oil prices put Hess to NJ... 30 to NYC! shares back in the market’s fast lane LAST WEEK, with blizzards blanketing Superior the West and temperatures Location plummeting in much of the nation, investors decided that maybe, just Exceptional maybe, there’s money to be made in owning stock in oil companies such Amenities as Hess. Less than a month after Outstanding Hess had reported its first dip in quarterly earnings in over a year, its Value shares gushed upward by 11%. Now analysts are rethinking their predictions for a second down quarter. Blue Hill Plaza After rising nearly 70% from their June 28 initial offering price, shares of On the Bergen/Rockland border preppy retailer J. Crew were finally brought down by the forces of gravity last week. Yes, the company’s numbers are great; revenues jumped 23% in the Ideally situated close to Northern New Jersey, Manhattan third quarter, and analysts expect more gains to come. But with a trailing – and your employee base – price/earnings ratio pushing 85 and a leading P/E of well over 30, the shares were ripe for a reality check. And that they got, falling 10%. Blue Hill Plaza offers so much more: New York Jack Frost’s tardy arrival in much of • New First Class Dining Blue Hill Plaza the country last month was bad news • Fitness Center % for New York & Co. Sales in stores • On Site Child Care Bergen open at least a year declined by 2%, • Cutting Edge Fiber Optic Technology and Equipment County mostly because warm weather turned GW customers off from the chain’s New Jersey Bridge Office units from 1,000 sf to potential 150,000 sf sweaters, coats and winter accessories. News of the retailer’s For leasing information, Leasing and management by second monthly shortfall in a row call Carol McGuire Blue Hill Plaza is a pushed the stock down 10%. So far Glorious Sun/Robert Martin 914.592.4800 this year, the shares have shed 40% www.mack-cali.com Company Property [email protected] of their value. charts: jennifer chiu

4 | Crain’s New York Business | December 4, 2006 a new

100 ParkAvenue

A comprehensive building redevelopment with new infrastructure and cutting-edge architectural design.

160,000 contiguous sq.ft.

Paul N. Glickman, Exec. VP 212-841-7847 [email protected] A. Mitti Liebersohn, Exec. VP 212-841-7860 [email protected] Alexander M. Chudnoff, Exec. Dir. 212-841-5981 [email protected] Adam R. Goldenberg, Senior Dir. 212-841-7529 [email protected]

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Larry A. Swiger, VP 212-216-1628 [email protected] Steven M. Durels, Exec. VP 212-216-1617 [email protected]

www.slgreen.com B erlin Boston

BuenosAires Rockefeller Center

welcomes the following new tenants Chicago NEW YORK,NEW YORK Huxley Associates Limited Frankfurt edited by Valerie Block December 4-10 represented by Ed Wartels of London CRESA Partners - New York LosAngeles Global Sage Group Refurnishing Apartment Madrid represented by ampbell apartment, the posh lounge Ruth Colp-Haber of Milwaukee Wharton Property Advisors, Inc. at Grand Central Terminal, will soon become a little more luxurious.The

NewYork C hangout for commuters and celebs like Toyo Ink International Corp. heartthrob George Clooney and Sex and the City NorthernVirginia represented by scribe Candace Bushnell is set to get a $350,000 Junji Miyake of makeover at the end of January. Colliers ABR The update will include new furnishings, floor

Paris coverings and the polishing of all that wood

Philadelphia paneling, says owner Mark Grossich, who operates a number of trendy New York nightspots. for leasing information, please contact: Renowned British interior decorator Patricia Campbell—the name is coincidental—will Peter Brindley tackle her first project on this side of the pond with the renovation. SanFrancisco Natalia Macias Gilbert Mr. Grossich says the bar, which has a dress code—no jeans or T-shirts, please—was Todd Silverman spiffed up for its opening six years ago, but has become a bit worn. “If we expect our Theodore Koltis

SaoPaulo customers to be well-dressed, we should be well-dressed to greet them,” he says. Fortunately for patrons, the Apartment should be closed for only a couple of days. Seattle Marketer Orleans will include reviews of 18 publishers hoping to buoy SiliconValley hotels and 29 tourist attractions, revenues and readership. plays it safe such as historic homes, museums “Local and community media 212.715.0300 djs, journalists, athletes and and above-ground cemeteries. are growth businesses,” says Tom

Sydney other cultural tastemakers recently Chief Executive Tim Zagat says Allon, president of Manhattan got an added present with their his company will promote the Media, which publishes Our Town

WashingtonDC Cornerstone Mixtape of the latest guide on national television and and West Side Spirit, among other hip-hop tracks: one Trojan to travel writers, in part to stir up titles. Magnum large-size condom. attention for the city. He’s hoping “We do get quite a few The classic- that major corporations inquiries,” says John Sutter, owner condom maker such as American of The Villager and other papers, partnered with Express or Capital One though GateHouse has yet to Cornerstone, a will help with come knocking. Manhattan-based marketing efforts. A spokeswoman for marketing company, “We can do GateHouse declined to comment. figuring the monthly something to help New Weiser is pleased to announce that Mixtape’s appeal in Orleans through a the urban community patriotic tourism German markt would be good for campaign,” he says. Magnum, which already has a a year away Mitchell J. following among rappers. “We new yorkers will have to wait a want to use influencers to pass Local papers: year to buy their gifts from the along our message that Magnum city’s first German Christmas Mertz is a more comfortable condom,” hot properties Market.The holiday fair, which joins the firm as partner. explains Kevin Sherlock, brand two weeks ago, when was scheduled to kick off at the manager of Trojan. GateHouse Media Inc. bought South Street Seaport last week The company sent out 10,000 the upstate Messenger Post chain (“New York, New York,” Nov. 20), samples with the October and of community newspapers, was canceled just four days before New York City 135 West 50th Street Mr. Mertz possesses more than 30 years November CDs, and is downstate community papers its launch because organizer New York, NY 10020 of experience providing accounting considering continuing the started seeing dollar signs. Twenty4you OHG couldn’t get all Tel 212.812.7000 program in 2007. Rochester-based GateHouse, of the necessary permits in time. Fax 212.375.6888 services to public and private companies, “It was a perfect fit,” says Kelli which owns more than 400 The German firm lost as much as Long Island particularly manufacturers, distributors, McNamara, vice president, business papers, went public in October $40,000 because of the snafu. 3000 Marcus Avenue Lake Success, NY 11042 service organizations, hedge funds, and development, at Cornerstone— and announced plans to expand. Co-founder Marc Hoffmann Tel 516.488.1200 mortgage companies. Mr. Mertz serves as alluding to Mixtape’s target News Corp., which owns the New says he will launch the fair in Fax 516.488.1238 audience of 18- to 34-year-old York Post, recently bought chains 2007 with more than double the chairman of the SEC Practice Committee Westchester males, not the size of the product. in Brooklyn and Queens. vendors and a German mini- 660 White Plains Road of the New York State Society of Certified “The idea was living large.” Community papers, unlike major brewery. “New York is not so Tarrytown, NY 10591 dailies, have not suffered easy; there are a lot of laws” Tel 914.333.0555 Public Accountants and possesses significant losses of readers or regulating outdoor fairs, he Fax 914.333.0556 significant experience with the Securities Ailing city advertisers to the Internet, making observes. “We invested a lot of New Jersey and Exchange Commission reporting ■ 399 Thornall Street on Zagat menu them takeover targets for money and time.” Edison, NJ 08837 requirements and Sarbanes-Oxley Tel 732.549.2800 compliance. the last zagat guide to New Fax 732.549.2898 Orleans was published in 2005 IS IT THAT TIME ALREADY? www.weiserLLP.com and listed 665 restaurants and nightspots. The devastating CIRCLE LINE announced three New Year’s Eve cruises, effects of Katrina reduced that which board at 9:30 p.m. at different locations and include For additional information, number to 488 in the upcoming a champagne toast, hors d’oeuvres, party favors and a DJ: contact Mitchell J. Mertz, CPA book, which will be released on Zephyr (luxury yacht) South St. Seaport $175 Jan. 3. at 212.375.6750. or Battery Park $125 Weiser LLP To pad the pages and entice Miss Circle Line Certified Public Accountants [email protected] more visitors to the region, the Miss New York Jersey City $125

Zagat Survey 2007 Best of New gettyimages

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AT A GLANCE Firm toys with success via licensing SABABA TOYS INC. FOUNDED August 2000 president of another games compa- brands. Big toy makers will typical- HEADQUARTERS Manhattan Sababa scores big by reviving lagging brands ny who said it took him seven or ly enter such deals as a way of coax- NUMBER OF LICENSES 33 of game companies; nose for hot trends eight years to have his first 100,000- ing income from lines that are too EMPLOYEES 27 unit item,” observes Mr. Newman. tired or obscure to rank as major otal role in catapulting Mr. New- “We had that in two years with earners. RETAILERS Barnes & Noble, BY GWEN MORAN man’s Sababa Toys Inc. to sales of SpongeBob.” The licensing deals are most Sports Authority, Yankees Club- $15 million in just five years. commonly structured as straight house stores and others Profitable niche tone newman has a soft SpongeBob SquarePants UNO, a royalty arrangements, with the li- BEST-SELLING spot for SpongeBob card game that Sababa sells under li- sababa is one of a growing number censee paying a set percentage— GAME SpongeBob SquarePants. cense from Mattel,is Mr.Newman’s of smaller toy distributors and man- usually 8% to 12% of the wholesale SquarePants UNO, He certainly ought to. No. 1 moneymaker, with total sales ufacturers that are carving out prof- price—to the licensor.The rub:The retailing at $12.99 The ubiquitous yellow of well over a million units. itable niches by licensing the rights licensee, which pays to have the Scartoon character has played a piv- “I was having dinner with the to produce other companies’ goods produced and distributed, carries all the risk. The business re- quires a keen eye for potentially hot products as well as finely honed marketing skills, if not pre-existing marketing networks. Mr. Newman’s first brush with licensing came at toy giant Hasbro, where he worked in the late 1990s. He was part of a team that licensed the company’s flagging Tonka brand of trucks to a smaller company that did wonders with the toys. Even pros make mistakes, how- ever, and Sababa’s first venture was a bust. Mr. Newman thought he’d strike it rich with Fashion Attitude Dolls, which featured clothing li- censed from companies like Doll House and Jordache. Unfortu- nately, the FAD launch coincided with the introduction of MGA Entertainment’s Bratz dolls, whose hefty television campaign buried FAD. As FAD fizzled, UNO quietly took off, saving the firm in the process. But the lesson was clear. Mr. Newman set out to line up a di- verse collection of classic games, novelties and other items, including such venerable hits as Tyco’s Magic 8 Ball and an array of Fisher-Price toys. Those moves paid off. Since 2003, Sababa’s sales have grown 35% a year. “I like Sababa because they’re in- novative and always ahead of market trends,” says Ellen Heaney Mizer, a games and puzzles buyer for Barnes & Noble. Getting attention sababa’s success in its well- defined space has attracted licen- sors’ attention. Mr. Newman says that as a recognized leader in “tak- ing old brands and making them brand-new,” his company is getting calls from those with products that need resuscitating.The list includes items with great appeal for kids, such as the Snoopy Sno-Cone Ma- chine, which Sababa will re-release next year. This holiday season, Mr. New- man is betting big on dragonology. He is introducing action figures and a board game based on New York Times best-seller Dragonology: The Complete Book of Dragons. “It’s a very small but passionate consumer group that demands prod- uct,” says toy industry analyst Chris Byrne.“But someone like Hasbro or even Cranium can’t make enough money on it to make it worthwhile within their infrastructures.”

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© 2006 AARP Financial SEP-FEES-06-C VIEWPOINT Mayor needs to think tax cuts editor in chief Rance Crain vice president, publishing director ince michael bloomberg became mayor, for homeowners by instituting a $400 rebate.The failure to Alair Townsend city revenue has soared by 49%.That’s an give a similar break to commercial properties, combined publisher Jill Kaplan astonishing number, and the mayor should with soaring assessments, has shifted more of the burden to EDITORIAL post it above his desk as he begins putting business. editor Greg David managing editor Richard Barbieri together the next budget. It will remind him The mayor argues that the city has compelling needs to projects editor Cynthia Rigg that he should make tax cuts a key part of his improve schools and repair infrastructure, as well as a list of deputy managing editors Valerie Block, Erik Ipsen agenda. other priorities. Mr. senior reporters Aaron Elstein, Late last month, the city announced just how robust its Bloomberg also insists that Lisa Fickenscher, Matthew Flamm, tax collections have been in the Bloomberg years.The the soaring cost of Tom Fredrickson, Samantha Marshall, S Anne Michaud, Miriam Kreinin Souccar budget surplus for fiscal 2007 ending June 30 is estimated to pensions, health care and reporters Barbara Benson, Elisabeth Butler, Erik Engquist, Amanda Fung, Hilary Potkewitz, be a higher-than-expected $1.9 billion, and that’s after a big debt service will put Julie Satow, Gale Scott chunk of it has been put aside to pay for large raises for city enormous pressure on restaurant critic Bob Lape art director Steven Krupinski workers.The pro forma budget gap for fiscal 2008 has been future budgets, and that it deputy art directors Carolyn McClain, whittled to only about $500 million, the lowest in recent would be imprudent to Daniel Mednick staff photographer Buck Ennis memory. reduce revenues now. copy desk chief Wendy Zuckerman Wall Street profits, the real estate boom and a generally But if New York City copy editors Michele Arboit, Leslie Jay, stronger economy all played positive roles in creating the Thaddeus Rutkowski doesn’t cut taxes when research editor Denise Southwood surge in city tax revenues. But unfortunately, some of the times are good, it will never associate research editor jump is attributable to tax increases Mr. Bloomberg pushed do so. It is politically too Adrianne Pasquarelli

jennifer chiu www.NewYorkBusiness.com through in 2002, his first year in office. difficult to cut the city online editor Catherine Tymkiw At the time, New York City faced a difficult situation. budget substantially—even when revenues are plummeting. online reporter David Jones Revenues had fallen by about $1 billion as a result of a That’s the lesson the mayor should have drawn from his EDITORIAL AND ADVERTISING OFFICES 711 Third Ave., New York, NY 10017-5806 deepening recession and the damage to the economy predicament in 2002. Mr. Bloomberg’s efforts to reform editorial: 212.210.0277 Fax 212.210.0799 inflicted by the Sept. 11 terrorist attacks. Because the mayor public employee pension and health care benefits will come advertising: 212.210.0259 Cable craincom nyk had cut the expense side of the budget as much as he to naught if he doesn’t cap the amount of money the city is Fax 212.210.0499 thought he could, he proposed a 25% hike in property taxes, taking in. Entire contents ©copyright 2006 Crain Communications Inc. All rights reserved. eventually compromising on 18.5%—still the city’s largest All New Yorkers deserve a tax break.This time, the mayor ®CityBusiness is a registered trademark of MCP single property tax hike ever. should include business, the group that has paid more than Inc., used under license agreement. When times improved, Mr. Bloomberg softened the blow its fair share during his tenure. TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. $3.00 a copy, $59.79 one year, $109.79 two years. www.NewYorkBusiness.com LETTERS TO THE EDITOR ADVERTISING AND MARKETING advertising director Vanessa Cognard business development manager Robert N. Grossman account executives Andrew Carlin, Holly A. McKeown, Derek Reese, No sympathy for elitist fledglings Jennifer Siniscalchi, William E. Squitieri, Brigitte Stieglitz longer find services like western account manager THEY SHOULD CONSIDER CONGRESSIONAL SEAT Ellen Mazen (Los Angeles) 323.370.2477 OTHER BOROUGHS AT WHAT PRICE? locksmiths, shoe repair or even classified sales manager John Gallagher affordable dry cleaners. newsletter product manager no doubt the college graduates “the insider”in Crain’s Nov. 13 Mr. David says that the cost of Catherine Evans Gittens profiled in “Fledglings return to issue reported that John Hall won market-rate apartments would fall. sales coordinators Lulé Haznedari, nest” (Crain’s, Nov. 13) believe his northern Westchester Possibly instead of paying $3,600 Anita Perrino credit Pat Grondziak 313.446.6082 that the city of New York starts at congressional seat thanks to for one-bedroom apartment, one marketing director MJ Snyder the Battery and ends at 96th Kiryas Joel. would pay $2,600. That would marketing assistant Jill H. Bottomley Street. They would move to The question now is: What did be a huge increase for many assistant circulation manager California before they would live Mr. Hall promise Kiryas Joel in rent-stabilized one-bedroom Michael Holowchuk in the outer boroughs with the return for their en bloc vote? apartments, which would push out internet director Marc Minardo “common” folk. jacqueline edwards remaining middle- and working- NEW YORK PRODUCTION It is this elitist attitude that class families. Clearly, without rent production and pre-press director contributes to the “I will pay any $2,600 TOO HIGH stabilization, New York, and Michael Corsi price for a socially acceptable ZIP especially Manhattan, will be advertising production manager

FOR ONE-BEDROOM h. howard john code” mind-set. unaffordable to most of its current Marilyn DeMilta As a specialist in the sales and greg david’s assertion in his Oct. inhabitants. What will be left is PUBLISHED BY CRAIN COMMUNICATIONS INC. rentals of affordable housing in 23 column that “complete rising consistently in the whole the affluent and the poor in low- chairman Keith E. Crain Mott Haven, the Bronx, I shed no decontrol [of rents] would benefit city. Many small businesses are income housing (unless that’s president Rance Crain tears for their alleged plight. the city enormously” is erroneous. being pushed out in favor of big- eliminated as well). secretary Merrilee Crain sid miller Commercial rents in New box retailers and other upscale paula oleska treasurer Mary Kay Crain Director York are unregulated. establishments. As a result, in President executive vp, operations William Morrow The Haven Heights Group Consequently, they have been many neighborhoods one can no Natural Intelligence Systems Inc. senior vp, group publisher Gloria Scoby group vp, technology, circulation, manufacturing Robert C. Adams vice president/production & manufacturing David Kamis WHAT’S COMING UP IN CRAIN’S? corporate circulation director Patrick Sheposh Small Nonprofit Crain’s 2007 Small Real Book economic business estate founder G.D. Crain Jr. (1885-1973) business industry chairman Mrs. G.D. Crain Jr. report report of Lists outlook report report (1911-1996) Dec. 11 Dec. 18 Dec. 25 Jan. 1 Jan. 8 Jan. 15

10 | Crain’s New York Business | December 4, 2006 who did won’t forget her artistry. The stage lost Cy Feuer,a produc- Q. GGK’s Slogan is… er of Guys and Dolls; Lloyd Richards, “Quality Companies Are Attracted To Us” who directed A Raisin in the Sun and In your view, why are quality companies six of August Wilson’s plays; actor Shelley Winters; and playwright attracted to Goldstein Golub Kessler LLP? Wendy Wasserstein. I vividly re- member seeing The Heidi Chronicles and relating to the struggles and suc- A. “Quality companies expect one- cesses of its central character. on-one, frequent and meaningful Gordon Parks leaves behind a re- interaction with the partner on markable body of work—not just their account. GGK’s style - and photographs, but novels, autobi- my style personally - is to have ographies, music and films. MEDIA Ed Bradley was a tower- frequent meetings, calls and ing figure in broadcast journalism.It contacts throughout the year. This is difficult to think of 60 Minutes ensures a better understanding of Steven Mayer, CPA without him.Abe Rosenthal shaped my clients’ operations, which is Partner a generation of print reporters and what quality companies demand 212.372.1261 [email protected] editors with his standards and pas- of their audit relationship”. sions. R.W. “Johnny” Apple Jr. was a larger-than-life character whose To learn more about our commercial audit services for like we may never see—or read— again. privately-held companies, our specialized services for The year also claimed four local SEC reporting companies, hedge funds, broker-dealers, john h.john howard reporters I remember well from my and not-for-profits, or to request a brochure, call me or years at City Hall: Dennis Duggan visit our website, www.ggkllp.com. of Newsday, Beth Fallon of the Daily News, Mary Gay Taylor of GOLDSTEIN GOLUB KESSLER LLP WCBS-AM radio and Bill Beutel Certified Public Accountants and Consultants Remembering of WABC-TV. Quality Companies Are Attracted To USSM GOVERNMENT Tom Manton, for- mer member of Congress and long- 1185 Avenue of the Americas Suite 500 New York, NY 10036-2602 Tel 212 372 1800 Fax 212 372 1801 www.ggkllp.com the extraordinary time chairman of the Queens Dem- ocratic organization, was one of the last old-school bosses. ew york lost some remarkable people in 2006. Former City Councilman Bob Dryfoos will be remembered for de- I salute them. fying party bosses to cast the deci- BUSINESS John Weinberg’s name was syn- sive vote that made Peter Vallone Sr. onymous with Goldman Sachs, which he led the speaker of the Council in 1986. for years. His style of relationship banking and I’m glad he did. Also former Brook- lyn State Sen. Donald Halperin, Ncustomer focus served the firm—and its clients—well. former director of the city’s Bureau Richard T. Greene Sr. built Carver Federal Savings Bank of Franchises Morris Tarshis, and Koch transportation commissioner into the largest African- Schwarzkopf, Anna Tony Ameruso. Tony’s observation American bank. Oleg Moffo and Birgit Nils- that “the budget is like a pizza; rev- Cassini dressed our son. Long after they re- enues are the sauce”endeared him to queen, Jackie Kennedy, tired, they were legends me when I was budget director. and put the rest of us in the Metropolitan IN A CLASS BY THEMSELVES Here in A-line dresses. Also Opera’s rich history. I put Pat Kennedy Lawford, the Wall Street veteran The dance world Rev. William Sloane Coffin Jr., Lewis Glucksman, for- mourned the passing of Floyd Patterson, Justin Garcia and mer IBM CEO Frank Katherine Dunham, a Betty Friedan. Ms. Friedan gave Cary, real estate devel- dancer and choreogra- voice to the aspirations of millions oper and philanthropist pher who toured the of women in The Feminine Mys- Richard Fisher, archi- ALAIR world with her black tique. She helped men and women tect Richard Blinder and TOWNSEND modern dance compa- better understand the Chinese say- media mogul William ny and broke color bar- ing that women hold up half the sky. Ziff. riers everywhere. I nev- Army Spc. Justin Garcia was one ARTS Opera fans bade farewell to er saw Melissa Hayden dance at the of the New Yorkers killed in action three beloved sopranos: Elisabeth New York City Ballet, but friends in Iraq this year. God bless them all.

CRAIN’S ONLINE POLL DO YOU AGREE WITH THE BERGER PANEL’S RECOMMENDATIONS TO CLOSE OR RESTRUCTURE A NUMBER OF HOSPITALS?

NEARLY TWO-THIRDS of the 165 parti- No, the aging cipants in a Crain’s poll back the panel’s population will 12% need the beds . Yes, the system report, with 39% saying that New York’s eventually 39%. is too big and health care system costs too much and costly 24% insisting that savings should go No, the .25% hospitals are Yes, but savings toward preventive care and help for the vital to their need to be spent neighborhoods 24%. on preventive uninsured. Another 25% cite community health and the needs in opposing the recommendations. uninsured For this week’s question: Go to www.NewYorkBusiness.com/poll to have your say.

December 4, 2006 | Crain’s New York Business | 11 The bonds will be repaid with PILOT funds.The city will be liable for the payments if the MAJOR REFORMS Rangel’s agenda THE INSIDER revenue does not materialize. REP. CHARLES RANGEL, expansive in his new role as chairman of the House Ways and Means by Erik Engquist and Anne Michaud Committee, said last week that he wants to tackle Domain bill deadlocked issues over the next two years and loses ground reopen the House floor to spirited debate. Speaking at a Crain’s breakfast forum, Mr. fears of a federal bill to restrict Rangel admitted that he can’t pass needed reforms Uncertainties over West Side bonds eminent domain have receded to Social Security, Medicare and the tax code among Bloomberg administration without Republican help. He said he would enlist he city will sell its first bonds to finance officials and private developers, GOP members of his panel and Treasury Secretary sources say. Henry Paulson—another prominent New Yorker—to development of the far West Side this week amid The Democratic takeover of attend a retreat, involving committee members ratings agency concerns. Congress makes the bill “less from both sides of the aisle, to explore T viable,” according to a high-level Moody’s Investors Service assigned an A3 rating—lower compromises. than the city’s overall credit rating of A1—to the Hudson Yards executive at a major development firm. “Compromise and pain are going to be Infrastructure Corp., the entity created to finance infrastructure The House had overwhelmingly involved, there are going to be winners and losers, improvements and the extension of the No. 7 subway line to passed the bill, which calls for and that’s why these reforms need to be the area. Moody’s said there is potential for significant cutting off federal community bipartisan,” said the Harlem Democrat, who will development block grants to states take the helm in January when the new Congress that condemn land to benefit convenes with a Democratic majority. “The private projects, as the city does to American people will accept these reforms if they build affordable housing and the believe they have been arrived at honestly.” state may do for the Atlantic Yards A tax hike or an increase in the retirement age may be needed to keep the project in Brooklyn. Social Security system solvent, Mr. Rangel said, but he vowed that neither that system nor Medicare would be privatized. “You’re not going to get rid of entitlements—forget about it,” he said. Mayor taps He declined to be specific, but suggested a simplification of the tax code gettyimages commissioners that would close loopholes and pave the way for elimination of the widely disliked alternative minimum tax. Eliminating the AMT could cost as much as construction delay and an uncertain gone up on the far West Side by mayor michael bloomberg $1 trillion, said Mr. Rangel, who promised to preserve deductibility of state future demand for office space. the time the neighborhood is nominated Nathan Leventhal and and local taxes—a key issue for New York. Earlier, Fitch Ratings rated the built out in 2050. The study, by Betty Chen to serve on the City He ducked the question of whether he would support fellow New Yorker debt A-. Cushman & Wakefield Inc., predicts Planning Commission. Mr. Sen. Hillary Rodham Clinton for president, saying he intended to spend the Goldman Sachs is the lead that HYIC will collect annual Leventhal is a former president of next two years focusing on his work as chairman of Ways and Means. He did underwriter for the issue, which is payments in lieu of taxes. The Lincoln Center and was a first offer a candidate for the other side: “I very, very strongly recommend Rudolph expected to raise $1.75 billion. corporation is counting on deputy mayor for Ed Koch. Ms. Giuliani as the Republican,” Mr. Rangel said, before bursting out laughing. HYIC plans to borrow up to payments of $13.2 million in Chen is an architect and vice $3.5 billion to complete the project. 2007, mostly from residential president of the Governors Island Meanwhile, a consultant’s study development that has already Preservation and Education Corp. published with the prospectus begun. By 2050, PILOT revenue Mr. Bloomberg has also year terms.The two new Mr. Breakell spoke at a forum anticipates that 14 commercial will total between $34.4 billion and renominated Commissioners Fred commissioners replace Jane Gol and on the 2006 elections organized by towers and four hotels will have $38.9 billion, the study says. Cerullo and Richard Eaddy for five- Christopher Kui. Milano The New School for Chinatown insiders say that Mr. Management and Urban Policy. He Kui, a prominent advocate for the said the state GOP is disorganized Asian community as executive and depleted to the point that its director of Asian Americans For base makes up just 25% of state Equality, is losing his post over a voters and therefore cannot raise dispute with the mayor’s office enough money to win elections. about who would be named to the He recommended broadening Chinatown Partnership, a local the party’s message to appeal to development corporation formed independent and crossover voters. earlier this year. However, a He said playing defense— spokesman for AAFE says Mr. Kui hunkering down to protect the is simply too busy to serve on the GOP’s state Senate majority—was Planning Commission. A mayoral an uninspiring prospect. spokesman declines to confirm any dispute. Stealth interview Finance board surprises campaign a blockbuster pre-election cover votes for change story in New York magazine, in THE DRY SHOWER. the campaign finance board which Jeanine will ask for changes to the program (below) and that provides public money to Albert Pirro candidates at a City Council hearing discussed their on Dec. 7.The board’s most marriage, took controversial request will be to ban the Jeanine Pirro campaign contributions from campaign by companies doing business with the surprise, a city. If the council fails to act, the strategist says.

CFB would require candidates to news daily The October disclose such donations. piece quoted both Pirros about their relationship following revelations that Ms. Pirro had tried Republicans lose to have her husband’s boat bugged. John Gallagher, the campaign’s competitive edge press secretary, says he was on a walt breakell, manager of train when he received a call saying William Weld’s short-lived campaign that a New York magazine reporter for New York governor, said he was in Mr. Pirro’s office. After that, GOT A SMALL BUSINESS IDEA? doesn’t expect to see a competitive Mr. Gallagher says, the campaign Make it happen. Download our free software at Republican candidate for statewide had to make Ms. Pirro available, office for the next eight years—or too, because “we wanted to find out two campaign cycles. what Al had said” to the reporter. ■

12 | Crain’s New York Business | December 4, 2006

WEEK IN REVIEW

Partners to win a $15 million to ECONOMIC SPOTLIGHT $20 million advertising account from NYC Marketing.The tourism agency was created earlier this year to oversee marketing, tourism and big events for the city. Housing scheme new york state Attorney General Eliot Spitzer reached a $1.8 million settlement with a group of Brooklyn mortgage brokers who allegedly entered a scheme to flip houses in Crown Heights, Bedford-Stuyvesant and other neighborhoods. Greenberg denies Times Co. play former american International Group Chairman Maurice “Hank” Greenberg denied reports that he Manhattan Mall shopped is considering a hostile takeover of The New York Times Co.The VORNADO REALTY TRUST agreed to buy the struggling billionaire investor has bought Manhattan Mall, located at Sixth Avenue and West 33rd fewer than 100,000 shares of the Street, for $689 million. The deal would extend Vornado’s publishing company. Economy Watch footprint in the Penn Station area. The 1 million-square-foot mall houses 60 retailers, as well as offices for Interpublic New imprint NYC posted its lowest jobless rate since the data-tracking series began in the barnes & noble inc.’s Sterling mid-’70s. Area inflation fell, spurred by a huge 12% decline in the energy index. Group of Companies and Bank of America. The deal, slated to close early next year, includes 250,000 square Publishing unit is launching AUGUST ’06 SEPTEMBER ’06 COMPARISON Union Square Press, its first NYC jobless rate 4.5% 4.1% 4.4%1 feet of air rights. imprint devoted to narrative nonfiction. Industry veteran

2 larry ford NYC employment change +400 -2,200 +59,100 Philip Turner, vice president of NY area inflation change -0.5% -0.5% +2.4%3 the independent press Avalon 1-U.S. unemployment rate. 2-Change since December 2005. 3-Inflation rate for the latest Kalikow might Cramer radio show Publishing Group, has been 12-month period. leave MTA post signs off named editorial director. metropolitan transportation thestreet.com co-founder Jim Authority Chairman Peter Cramer (left) is Whitney satellite NYC Hotel Stats Broadway Stats Kalikow said he may resign by ending his nationally the whitney museum of The daily room rate continued Gross in the week ended 11/26 was the end of the second quarter. syndicated radio American Art signed a deal to upward in October, pumping up the the highest since the end of ’05 and Mr. Kalikow, whose term show, RealMoney create a satellite location at an average for the first 10 months of beat year-earlier levels by $2.5 mil- ends in 2012, said he with Jim entrance to the High Line.The 2006 to $259.88, according to PKF lion, says The League of American would leave early if he Cramer,by new branch at Gansevoort and Consulting. The year-to-date occu- Theatres and Producers. Only five could complete a few key mutual agree- Washington streets—which will pancy level reached 84.9%. shows had a week-to-week decline. projects, like securing ment with be built on a site recently pur- funding for the Second Avenue CBS Radio. chased from the city—is slated to subway. Separately, the MTA said He plans to be twice the size of the Whitney’s it won’t raise fares on subways and focus on home on Madison Avenue and buses for the next two years, citing developing East 75th Street. its $938 million budget surplus. more video

cnbc and mul- timedia programming for the Thor Equities Reckson review financial Web site. reckson associates Realty buys Astroland Corp. postponed, for the second thor equities bought the week in a row, a shareholder Regulatory merger Astroland Amusement Park site in meeting to vote on an acquisition nasd and nyse group inc. Coney Island, Brooklyn, moving a offer by SL Green. Reckson is agreed to combine their step closer to realizing its pro- reviewing a rival $49-per-share bid regulatory functions. NASD posed $1.5 billion entertainment from a group comprising billionaire Chief Executive Mary Schapiro district. Zoning changes are financier Carl Icahn, real estate will become CEO of the new required before construction can Capital IQ’s Weekly Deals Report mogul Harry Macklowe and organization, which is slated to begin on the project, which will Mack-Cali Realty Corp. SL Green launch next year. include housing, retail shops, a TRANSACTION SIZE said it would not raise its bid. hotel and amusement park rides. COMPANY (in millions) BUYER/INVESTOR TRANSACTION TYPE —from staff reports and U.S. Trust Corp. $3,300.0 Bank of America Corp. SB M&A Verizon in bloomberg news reports Manhattan Cablevision video deals Anthracite Capital Inc. $263.5 Not disclosed GCI Manhattan consultant sued verizon wireless inked deals Advantedge Healthcare Solutions $20.0 Founders Equity Inc., GCI a group of shareholders sued with YouTube Inc. and smaller Staten Island Safeguard Scientifics Inc. Cablevision Systems Corp.’s rival Revver.com to show video eTwine Holdings Inc. $10.0 Dutchess Private Equities Fund GCI compensation consultant, Lyons clips on Verizon V Cast cell Jericho, L.I. Benenson & Co., for allegedly phones starting in December. Xenomics Inc. $2.2 Not disclosed GCI helping the Bethpage, L.I., cable Manhattan operator backdate options Selected deals announced during the week of Nov. 19 for companies headquartered in metro New granted to a deceased executive NYC campaign York. GCI: Growth capital investment represents new money invested in a company for a minori- ty stake. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing in 1999. Cablevision is under bartle bogle hegarty beat out newsbloomberg shares of a company without the participation of a financial buyer. investigation for its options- Interpublic Group of Companies’ PLAYTIME: Thor Equities bought famed jennifer chiu granting practices. Lowe unit and Arnold Worldwide Coney Island amusement park Astroland.

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can pay back the loan.” The company is already talking Whole Foods Brooklynizes new store to the borough’s two surviving seltzer makers to supply an egg- post in the spring of 2008, shoppers Brooklyn vendors and people who Gowanus Canal at Third Avenue cream and soda fountain café. Market makes effort won’t be the only ones with a reason produce foodstuffs in Brooklyn,” and Third Street, it isn’t likely to One local foodie who has already to stock local goods; to cheer. A host of local food com- says Letitia Theodore, a vice presi- stock Nathan’s Famous hot dogs. gotten the nod is Rick Field, a pickle panies will be the beneficiaries of the dent at the chamber. “Whole Foods But there will be pasta from a to-be- maker who lives in Prospect Heights. movie studio has Texas-based chain’s efforts to stock has a good reputation,and the expo- determined Brooklyn manufacturer, He was discovered by Whole Foods “made in Brooklyn” goods. sure would be incredible.” says Christina Minardi, Northeast when the chain opened its Union long-term plan Whole Foods is planning a two- Making the grade isn’t easy. The regional president for Whole Foods. Square store last year. day meeting in February with store shuns products with artificial She notes that Whole Foods can “I met with the regional grocery hen upscale prospective vendors.Meanwhile,the flavors,colors or sweeteners,and bars be more than just a good customer. buyer in the warehouse behind the grocer Whole Brooklyn Chamber of Commerce products from animals that live in “If a pasta maker needs an extra ravi- store,” Mr. Field says.“She was like, Foods Market has two staff members helping con- cages or receive antibiotics. oli machine, we can lend him the ‘Pull your pickles out and start talk- opens its first nect local businesses with the grocer. So although Whole Foods plans money to do that,” she says. “His ing.’ She tasted them on the spot, Brooklyn out- “It’s a really good opportunity for to Brooklynize its store on the business will increase, and then he there was a drum roll, and she said, W ‘These are good.’ ” Once his pickles were approved, he worked with Whole Foods’ Union Square buyer to get them 101 HUDSON STREET, JERSEY CITY, NJ stocked. They sold well, and 18 months later Rick’s Picks are in 40 Whole Foods across the country. —erik engquist

KAUFMAN ASTORIA plans to give its facility more of a Hollywood back-lot feel. It’s just like Studio writes script being in New York. for business kaufman astoria studios is look- Of course,the ing for a few good, long-term ten- ants. In an effort that began late last month, the studio—which has been awesome views and home to Sesame Street and the Law & Order franchise—began marketing business incentives 300,000 square feet of prime office and production space in a building will clearly remind vacated by Lifetime Entertainment. Studio President Hal Rosen- bluth hopes to lure entertainment you that you’re not. firms interested in a place for doing business,not just for making movies. Let’s be clear. 101 Hudson Street is on the Jersey “We’re marketing ourselves as a City waterfront. But with that comes some pretty permanent office product,and that’s spectacular advantages. Things like tax breaks, new,” Mr. Rosenbluth says. lower utility costs and a lower loss factor. You’ll For the last 86 years,the Long Is- also enjoy outstanding restaurants, shops and land City, Queens-based studio has been focused on the production side, a luxury Hyatt hotel. But the real clincher where the phrase “long-term tenant” is that the office tower affords unrivaled is an oxymoron. “No one comes in views of the Manhattan skyline. And it’s and says, ‘I have five years of a TV just a 4-minute PATH ride to downtown. show,’ ” Mr. Rosenbluth laments. “I Of course, there is one more thing that wish they did, but usually it’s ‘I have puts 101 Hudson Street over the top. It’s 12 episodes planned,’ and then our basic business philosophy that our they’re gone in three months.” tenants come first. Call Mack-Cali for To help lure longer-term renters, all the details and a clear picture of the studio plans to give its facility everything 101 Hudson has to offer. more of a Hollywood back-lot feel. Kaufman Astoria is working with the city Economic Develop- ment Corp. to get permission to close off 36th Street between 34th and 35th avenues, where it owns several buildings, in order to create a major studio lot off the Long Is- land City street grid. “It will be like walking in the 101 Hudson Street, Jersey City, NJ www.101hudsonstreet.com gates of Paramount Studios. You 352,000 sq. ft. available for lease, including full floors. tend to not have that expectation in Contact: Tom Savoca, 201-261-0359 [email protected] New York,” Mr. Rosenbluth says. Christopher DeLorenzo, 201-986-1463 [email protected] The studio plans to begin construc-

©2006 Mack-Cali tion in the spring. —hilary potkewitz

16 | Crain’s New York Business | December 4, 2006 REAL ESTATE INSIDE Most active office buildings in Manhattan PAGE 23 Largest commercial property managers in New York City PAGE 24 Japanese fashion in the city PAGE 27

NICHOLAS BILLOTTI says a Russian NY builders developer wants to do two more buildings with Turner International. cash in big overseas Foreign developers tap city firms for construction projects and architecture firms,have become BY ANDREW MARKS hot commodities for some of the world’s largest and most active de- nicholas billotti, chief executive velopers. The New York firms are of Turner International, is willing to taking the expertise they have devel- do just about anything—for some oped here in the cradle of huge people. high-rise projects and are applying Case in point:When Russian de- those lessons in fast-growing com- veloper Sergei Polansky hit town mercial centers from Moscow to two months ago, Mr. Billotti met Shanghai. him at the airport and whisked him off for a helicopter tour of Manhat- Making an impact tan,following that with up-close in- in the last year alone,New York spections of such key Turner firms have been tapped to triumphs as the Times work on such megaprojects Square Tower. 20% as the 5 million-square-foot Was all that effort worth AMOUNT Dubai Festival City and the of HOK’s it? Given that Mr. Polansky business 5million-square-foot Shang- ranks as one of Turner’s made up of hai International Medical biggest clients and is cur- overseas jobs Zone complex. rently hard at work on the “Developers in these 13-building Moscow-City com- emerging markets want to build plex—the largest construction proj- something that really makes an im- ect in all of Europe—the answer is pact, a super-high-rise tower,” says a resounding yes. Daniel Cuoco, president of Man- hattan-based engineering firm Hot commodities Thornton-Tomasetti Group Inc. “they are interested in doing “That’s something their local firms two more Moscow-City build- don’t have experience with, so they ings with us,” says Mr. Billotti, who come to us.” notes that both involve build- Meeting that demand has be- ing over busy rail lines, just as Tur- come a big growth industry for local ner has done at Times Square. construction-related firms—an ef- “They were very excited about our fort that has touched off a major hir- expertise.” ing spree in recent years. Excited indeed.New York-based At Thornton-Tomasetti, inter- construction companies like Turner, national work has been growing at a buck ennis as well as a host of local engineering See NY BUILDERS on Page 18

School executives “Two or three years ago, we got very favorable bids,” he says. More COSTLY COMPLEXES Colleges fit more buildings recently,what he describes as a pric- into tight budgets ing roller coaster has driven costs SCHOOL PROJECT SQUARE FEET COST steeply higher, making them his BOROUGH OF MANHATTAN Fiterman Hall 377,000 $202 million COMMUNITY COLLEGE (planned) No. 1 headache. cram BROOKLYN COLLEGE West Quad 141,000 $116 million BY STEVE WEINSTEIN It has become an all-too-com- (planned) mon tale. At colleges and universi- life used to be fairly easy for a ties across the city, the small, tightly FASHION INSTITUTE 406 W. 31st St. 320,000 $112 million to cope OF TECHNOLOGY (planned conversion) big spender like Sean Joyner. The knit teams of professionals who associate vice president for capital oversee building construction and JOHN JAY COLLEGE North Hall 600,000 $457 million OF CRIMINAL JUSTICE (planned) project management at Columbia renovation have been working flat- as costs University would put out a request out in recent years to keep up with for proposals, and the responses soaring demand for classroom and en to outrun budgets set by fund- spending at U.S. institutions of would come in at prices that he dormitory space. Now they have to raising efforts years earlier. higher learning tripled between 1993 take off could easily live with. cope with a new crisis as costs threat- Nationally, annual construction See COLLEGES on Page 21

December 4, 2006 | Crain’s New York Business | 17 REPORT REAL ESTATE NY builders cash in overseas

Continued from Page 17 developers has led another big ar- stands at 625, triple the level of just double-digit rate annually for five chitecture firm,Perkins Eastman,to five years ago. years. For Manhattan-based archi- hire 250 professionals in New “The only constraint to growing tecture firm Hellmuth Obata + York—an increase of 50%. Partner the business is our ability to hire Kassabaum, or HOK, revenues Diana Song says that the impact of enough qualified people to work on from overseas jobs have nearly dou- such overseas work on the firm’s the projects,” says Mr. Billotti. bled during the past five years. bottom line “is growing in propor- Louis Coletti, president of the They now account for 20% of busi- tion to our hiring expansion.” Building Trades Employers’ As- ness at the New York office,accord- sociation, sees the problem as in- ing to Kenneth Drucker, principal A larger staff creasingly serious. He says there is at the firm. at turner international in a risk “that we won’t have enough Explosive demand from foreign New York, the staff roster now See NY BUILDERS on Page 20 MAJOR PROJECTS HOK Architects The Brigade Gateway Location Bangalore, India No Description Self-sustaining Appraisal city on 45 acres, including 1.2 million square feet of Fee offices, 600,000 square feet of retail, housing for 10,000 people, plus hotel, hospital, school, and co-generating power plant Cost $333 million Completion date 2008 5+ Unit No Perkins Eastman Apartment Architects Documentation Shanghai International Building Fee Medical Zone Location Shanghai, China Owners Description 5 million-square-foot medical school campus, including 500-bed hospital, 7,000-student medical school, research park and retirement/rehab community Cost Not available Competitive We're focused on you. Completion date 2016 Pricing Thornton-Tomasetti Structural engineers Plaza 66 Location Shanghai, China Description Two towers—one 66 stories, the other 48 stories—with a total of 2.6 million square feet Cost $400 million Completion date 2006 Efficient 866.970.1985 Processing Call us today at Turner International Construction firm Federation Tower Location Moscow-City Complex, Moscow Description Two towers—one 93 stories, the other 64 stories—on common podium Cost $740 million Extensive Completion date 2008 Product Weidlinger Associates Menu Structural engineers Qingdao Fortune Center Location Qingdao, China Description Mixed-use 65-story #1 claim based on 2004 HMDA data. Credit is subject to approval. building Rates and programs are subject to change; certain restrictions apply. Cost $90 million FDIC Insured. ©2006 Washington Mutual, Inc. Completion date 2008

18 | Crain’s New York Business | December 4, 2006 You Are More Than 47,500 Square Feet

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Continued from Page 18 tion of the plans is turned over to decisions are made, we hand it off building, the Federation experienced project managers to local firms. to the local firm we’ve been teamed Tower. handle large jobs in New York.” Fees range anywhere from 0.25% up with,” says Peter DiMaggio, a American consultants Typically, the New Yorkers get of the project’s cost for engineers to principal at Manhattan-based en- make the big design deci- the call from overseas developers at as much as 2% for architects. In big gineering firm Weidlinger Associ- sions, then teach local firms the outset of big projects. They are projects such as the Federation Tow- ates Inc. how to execute the designs. tapped to draw up the construction er in Moscow, up to 20 professionals “We will typically draw up or architectural master plans,to pre- can be involved at a time,and fees can Local firms execute designs the master plan, and the lo- THE FEDERATION TOWER in the Moscow-City complex. pare the structural engineering easily run into the millions of dollars. on the siteof the massive Moscow- cal firms send people over blueprint or lay out the buildings’ “We’ll usually take an interna- City complex, for example,Turner is here to learn from us,” says mechanical systems and provide on- tional project to its halfway point functioning as the construction Kenneth Drucker, a principal at Eventually, the gravy train will going oversight. The actual execu- and then, once all the big design manager for the project’s tallest HOK’s Manhattan headquarters. come to an end, as local firms accu- mulate enough experience to dis- place the New Yorkers. That process is already at work in China,which has seen more than its share of huge construction projects in the last 20 years in Shanghai,Bei- jing and Qingdao.There, the trans- fer of technology is being speeded up by government mandates, under which one of the country’s engi- recently closed neering and design institutes must be associated with every project. fremont is proud to have closed the following loan “They’re certainly learning from us,” says Mr. DiMaggio.“We’re not seeing the local firms taking over the project work yet, but we are wondering when that’s going to happen.”

COMMENTS? [email protected] TIMING IS The William Beaver EVERYTHING House THE HUGE EXPANSION seen by many firms in their export work New York,NY has been perfectly timed. It began in earnest in 2002, when many New York-based building- related firms were suffering in the wake of the terrorist attacks of Sept. 11, and nonresidential $247,000,000 construction ground to a halt in Construction Loan the United States. “But we had a decent year because of the work we were doing in China,” says Thornton- Tomasetti Managing Director Robert Descenza. The engineering firm has been aggressively expanding its B ORROWER: The Sapir Organization/SDS Investments international presence ever since. M EZZANINE F INANCING: GSO Capital Now, as New York firms brace for a possible slowdown PARTICIPATING B ANK: PB Capital in China as that country’s own P ROPERTY T YPE: Luxury Condominiums skilled professionals take on more of the work, new markets are already popping up on the radar. Fremont Investment & Loan provides bridge and construction financing for commercial real estate, starting at $20 million. “There’s a lot of development money flowing With $11 billion in assets, the company originated more than $5.65 billion in structured commercial real estate loans into Latin America, the Middle nationwide in 2005, $1 billion of which was originated from the company’s New York office. In 2006, Fremont plans to East and Eastern Europe,” says close $7 billion in financing for quality commercial real estate development. Dan Fasulo, director of market analysis at Manhattan-based real estate research firm Real Capital Analytics, who projects that Morocco will soon have a project pipeline exceeding $10 billion. “And by virtue of ATLANTA CHICAGO DALLAS IRVINE LOS ANGELES NEW YORK PHOENIX SAN FRANCISCO WASHINGTON DC their extensive experience and 404/364-3700 312/836-9810 972/720-5460 949/567-2400 310/315-7019 212/703-2680 602/224-7700 510/267-7200 301/280-3440 know-how, I expect the American construction firms to www.1800fremont.com • FREMONT INVESTMENT & LOAN • Member FDIC • A Fremont General Company (FMT:NYSE) continue winning this business,” he says.

20 | Crain’s New York Business | December 4, 2006 REPORT REAL ESTATE

plosion in land prices in recent years. “Schools are competing Colleges adjust to higher costs with developers who are put- ting up residential towers.” Some schools have actually Continued from Page 17 Fordham University is also facing tration, who works with a staff of managed to turn rising land and 2003, according to American major cost pressures as it prepares to seven project managers. prices to their advantage. The School & University magazine, and kick off the rebuilding of the school’s New York Law School owned

there is no sign of a letup. In New Manhattan campus at Lincoln Cen- Land prices a factor an underdeveloped parcel on neighbors.columbia.edu York City alone, sources estimate, ter. That project is expected to span at this point, says Neil Lipinski, Church Street in TriBeCa for COLUMBIA plans to build a $7 billion campus. schools will add millions of square more than 25 years and to cost over senior managing director at real es- over 40 years. Early this year, feet of dormitory space alone over $1 billion, a figure that almost sure- tate firm Colliers ABR, “the only the school sold the site and air the next six years just to keep up with ly will have to be revised upward. schools that are doing new con- rights from adjoining properties, unlocking the value of our proper- the swelling demand. “We’re going to have to take it struction are those that have signif- and used the proceeds to build a new ty,” says Rick Matasar, the school’s The construction boom encom- one step at a time as we build up icant endowments.” He notes that academic hall. president. passes both public and private fund raising,” says Brian Byrne, the what has hurt some schools even “When the boom came, we de- schools.The City University of New school’s vice president of adminis- more than building costs is the ex- cided to put in a serious effort into COMMENTS? [email protected] York plans to spend $2.5 billion over the next five years on capital proj- ects. Among private schools, Co- lumbia tops them all with a new campus in the Manhattanville sec- tion of Harlem,at a projected cost of $7 billion. Overseeing that effort—and try- ing desperately to keep costs from 11 Madison Avenue flying off the rails—is Joe Ienusa, the school’s executive vice president for facilities. His staff includes no fewer than 33 project managers.To- gether, they handle projects totaling One incredible 95,000 sf tower floor. between $120 million and $180 million a year. Like their counterparts at other One fabulous opportunity. schools,he and his team mainly hire and oversee outside contractors— and these days, keep a lid on costs. With nothing like this available in Midtown, 11 Madison Avenue presents “We check with other institutions around the country to establish an opportunity to leverage the prestige of a landmark quality building [cost] benchmarks,” says Colum- and establish a powerful corporate identity. bia’s Mr. Joyner. Construction officials at New York University find themselves in a similar position. In the last five years,the school has spent hundreds of millions of dollars building every- thing from the $70 million Kimmel Center for University Life to a bumper crop of dormitories. Those efforts were led by Alison Leary, the school’s vice president of facilities and construction manage- ment. Beneath her is a staff that in- cludes 14 construction project man- agers. Time is now increasingly, what they do and even how they do it is driven by costs. “There’s a greater sense of ur- gency in getting projects off the ground, because of the minute-by- minute escalation of costs,” Ms. Leary explains. “That’s a relatively new problem.” To hasten things along, in the past 18 months Ms. Leary has reor- ganized her department.Previously, it was divided up by building and by “client” type, so that one depart- ment would handle construction of administration buildings, another dormitories and a third classrooms. Instead, Ms. Leary set up a cen- tralized office of construction man- agement that handles all capital projects. By focusing more on the big picture and leaving the details up to professionals—architects, engi- neers and construction compa- nies—the department has been able to speed things up. Mitchell L. Konsker [email protected] 212.841.7626 “We may have people who have Matthew R. Astrachan [email protected] 212.841.7904 more experience in, say, science projects,” she explains. “But in gen- David A. Rosenbloom [email protected] 212.841.7924 eral, we’re being more strategic and less day-to-day, less reactive.”

December 4, 2006 | Crain’s New York Business | 21 REPORT

REAL ESTATE ON

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22 | Crain’s New York Business | December 4, 2006 REPORT REAL ESTATE buck ennis buck ennis 7 World Trade Center 55 Water St. 485 Lexington Ave.

COSTAR’S MOST ACTIVE MANHATTAN OFFICE BUILDINGS look who’s making the grid gleam Based on square feet leased in 2006

Building address/ Square feet Total square feet Number Rank submarket leased in ’06 Building name in building Building owner of deals in ’06

7 World Trade Center 810,595 1,680,076 Silverstein Properties Inc. 6 1 World Trade Center 1 Bryant Park 725,627 Bank of America Tower 2,137,667 The Durst Organization Inc. 2 2 Times Square 522 Fifth Ave. 575,000 Morgan Stanley Building 580,067 Broadway Real Estate Partners 1 3 Times Square 620 Eighth Ave. 513,145 The New York Times Building 1,500,000 ING Clarion Partners 4 4 Times Square 55 Water St. 436,116 3,600,000 New Water Street Corp. 1 5 Financial District 1 World Financial Center 394,529 200 Liberty Street 1,461,365 Brookfield Properties Corp. 5 introducing the skygrid building 6 World Trade Center 1740 Broadway 320,051 567,000 Vornado Realty Trust 1 Columbus Circle Silverstein Properties is proud to introduce THE 7 The SkyGrid Building, at 575 Lexington 55 E. 52nd St. 305,821 skygrid Park Avenue Plaza 1,137,452 Fisher Brothers Management Co. 3 Avenue. Soon to feature a dramatic new Plaza District BUILDING 8 entryway and lobby, gleaming exterior, 3 World Financial Center 285,331 Tower C 2,263,855 Brookfield Properties Corp. 4 upgraded elevators, and state-of-the-art World Trade Center connectivity. Everything, in fact, that you 575 9 would expect at one of Midtown’s hottest 90 Park Ave. 277,291 890,000 Vornado Realty Trust 9 new addresses. For information on full Grand Central 10 and partial floor availabilities, please LEXINGTON AVENUE 153 E. 53rd St. 276,452 Citigroup Center 1,569,022 Boston Properties Inc. 7 contact Catherine T. Giliberti, Roger A. Plaza District Silverstein or Stuart A. Christie at (212) 11 732-9700. 345 Park Ave. 272,591 1,836,410 Rudin Management Co. 4 12 Plaza District silversteinproperties.com 345 Park Ave. South 247,638 The Iselin Building 268,148 RFR Realty 2 13 Gramercy Park 1372 Broadway 235,720 The National Tower Building 508,000 SL Green Realty Corp. 2 14 Penn Plaza/Garment 1095 Sixth Ave. 234,161 Verizon Building 1,228,096 Equity Office Properties Trust 1 15 Penn Plaza/Garment 199 Water St. 233,146 1 Seaport Plaza 1,045,008 Jack Resnick & Sons Inc. 2 16 Insurance District We mean business. 40 W. 57th St. 192,000 712,000 The Lefrak Organization 2 17 Plaza District 1166 Sixth Ave. 187,106 1,556,174 Marsh & McLennan Cos./ 3 Office and 18 Times Square Edward J. Minskoff Equities Inc. 40 Wall St. 175,198 The Trump Building 1,300,000 The Trump Organization 6 19 Financial District Retail Leasing 485 Lexington Ave. 168,222 926,122 SL Green Realty Corp. 3 20 Grand Central Finding value that others overlook. 1177 Sixth Ave. 166,599 Americas Tower 1,001,000 Paramount Group Inc. 6 21 Times Square 7 Times Square 162,797 Times Square Tower 1,238,708 Boston Properties Inc. 11 22 Times Square 2 Penn Plaza 161,338 1,525,000 Vornado Realty Trust 5 23 Penn Plaza/Garment 520 Madison Ave. 160,952 996,564 Tishman Speyer Properties 2 24 Plaza District 237 Park Ave. 160,771 Park Avenue Atrium 1,116,770 Monday Properties 2 Other Commercial Divisions: Grand Central 25 Development • Property Management • Asset Management Data are as of Nov. 14. Square feet leased covers both direct space—including renewals—and sublet space. CoStar Group Inc., a provider of information services to the U.S. NYS LICENSED REAL ESTATE BROKER and U.K. commercial real estate industries, offers customers access via the Internet to the most comprehensive verified database of commercial real estate information on 50 U.S. markets and the United Kingdom. For more information, visit www.costar.com or call (877) 7COSTAR.

December 4, 2006 | Crain’s New York Business | 23 REPORT REAL ESTATE

TOP PROPERTY MANAGERS: HAVES AND HAVE-MORES five firms dominate crain’s top 25 list of com- mercial property managers.They manage 202 mil- lion square feet of New York City commercial space,more than half of the total managed by firms on the list.Brookfield Properties posted the largest gain—32.6%—over the six months that Crain’s studied. The purchase of Trizec Properties gave Brookfield 17.5 million of commercial space under management here. Meanwhile, employment at the 25 firms rose 10% in the six months ending June 30. Tishman Speyer Properties had the largest jump, boosting its number of workers by 64.2%, to 1,589. jennifer chiu NY’s Largest Commercial Property Managers Ranked by square footage managed in New York City

Commercial Third-party sq. ft. managed in NYC sq. ft. managed in NYC 20061 20052 20063 20054 2006 NYC Rank Company Phone/Web site Head of NY office (in millions) (in millions) (in millions) (in millions) employees 5 Selected tenants Cushman & Wakefield Inc. (212) 841-7500 Joseph R. Harbert 60.10 57.60 60.10 57.60 1,672 Citigroup, Credit Suisse, 1 51 W. 52nd St. www.cushmanwakefield.com Chief operating officer, New York metro Pfizer, UBS New York, NY 10019 region Joseph A. Lagano Senior managing director, client solutions CB Richard Ellis (212) 984-8000 Mary Ann Tighe 42.00 42.00 42.00 42.00 545 Morgan Stanley, Marsh & 2 200 Park Ave. www.cbre.com Chief executive, New York tristate region McLennan, Condé Nast, New York, NY 10166 Mitch Rudin Invesco President, New York tristate region Jones Lang LaSalle Americas Inc. (212) 812-5700 Peter Riguardi 40.30 36.70 40.30 36.70 596 HSBC, MetLife, Bank of 3 153 E. 53rd St. www.joneslanglasalle.com President, New York region America, Deutsche Bank New York, NY 10022 Steve Schlegel Chief operating officer, New York region Newmark Knight Frank 6 (212) 372-2000 Barry Gosin 38.50 37.00 23.00 22.50 1,108 n/d 4 125 Park Ave. www.newmarkkf.com Vice chairman, chief executive New York, NY 10017 Tishman Speyer Properties (212) 715-0300 Robert J. Speyer 21.14 20.28 2.50 1.40 1,589 NBC, Lazard Frères, 5 45 Rockefeller Plaza www.tishmanspeyer.com Senior managing director Colgate-Palmolive, New York, NY 10111 Barclays SL Green Realty Corp. (212) 594-2700 Marc Holliday 20.20 19.55 1.00 1.00 784 Viacom International, 6 420 Lexington Ave. www.slgreen.com President, chief executive Credit Suisse Securities, New York, NY 10170 Omnicom Vornado Realty Trust (212) 894-7000 David R. Greenbaum 18.48 17.57 2.35 2.27 2,125 McGraw-Hill, VNU, 7 888 Seventh Ave. www.vno.com President, New York office Sterling Winthrop, New York, NY 10019 Federated Department Stores GVA Williams (212) 716-3500 Michael T. Cohen 17.71 17.46 13.81 13.56 537 Home Depot, Research 8 380 Madison Ave. www.gvawilliams.com Chairman, executive committee Foundation of CUNY, New York, NY 10017 Robert L. Freedman LVMH Moët Hennessy President, chief executive Louis Vuitton, Time Warner Cable Brookfield Properties Corp. 7 (212) 417-7000 Richard B. Clark 17.50 13.20 2.50 1.70 283 Merrill Lynch, Canadian 9 3 World Financial Center www.brookfieldproperties.com President, chief executive Imperial Bank of New York, NY 10281 Dennis Friedrich Commerce, Wachovia, President, chief operating officer, J.P. Morgan Chase U.S. commercial operations Grubb & Ellis (212) 759-9700 David Arena 12.80 11.40 12.80 11.40 400 Sony, TIAA-CREF, 10 1177 Sixth Ave. www.grubb-ellis.com President Moody’s Investors Service, New York, NY 10036 Bank of New York Colliers ABR Inc. (212) 758-0800 Mark P. Boisi 12.50 11.80 12.50 11.80 302 United Federation of 11 40 E. 52nd St. www.colliersabr.com Chairman Teachers, Metropolitan New York, NY 10022 Transportation Authority, LVMH Moët Hennessy Louis Vuitton, Stahl Real Estate Rockefeller Group Development Corp. (212) 282-2100 Jonathan D. Green 10.37 10.37 5.38 5.38 500 Time, Lehman Brothers, 12 1221 Sixth Ave. www.rockgroupdevelopment.com President, chief executive Sirius Satellite Radio, New York, NY 10020 Société Genéralé Rudin Management Co. (212) 407-2400 William C. Rudin 10.00 10.00 0.00 0.00 168 AIG, Reuters, BlackRock, 13 345 Park Ave. www.rudin.com President KPMG New York, NY 10154 Boston Properties Inc. (212) 326-4000 Robert E. Selsam 8.90 7.80 2.20 1.10 150 Citibank, Ernst & Young, 14 599 Lexington Ave. www.bostonproperties.com Senior vice president, regional manager Shearman & Sterling, New York, NY 10022 Lehman Brothers RFR Realty (212) 308-0700 Mark Granata 8.23 8.23 0.00 0.00 75 n/d 15 390 Park Ave. www.rfrrealty.com President New York, NY 10022 Durst Organization Inc. (212) 789-1155 Douglas Durst, Jonathan Durst 8.15 6.50 0.00 0.00 600 U.S. Trust, Skadden Arps 16 1155 Sixth Ave. www.durst.org Co-presidents Slate Meagher & Flom, New York, NY 10036 Condé Nast, White & Case

Continued

24 | Crain’s New York Business | December 4, 2006

REPORT REAL ESTATE

Commercial Third-party sq. ft. managed in NYC sq. ft. managed in NYC 20061 20052 20063 20054 2006 NYC Rank Company Phone/Web site Head of NY office (in millions) (in millions) (in millions) (in millions) employees 5 Selected tenants Paramount Group Inc. (212) 237-3100 Albert P. Behler 8.06 8.11 0.00 0.00 191 Kramer Levin Naftalis & 17 1633 Broadway www.paramount-group.com President, chief executive Frankel, ING Financial, New York, NY 10019 Viacom, Kasowitz Benson Torres & Friedman Murray Hill Properties (212) 944-4747 Neil H. Siderow, Norman Sturner 7.70 7.70 1.50 1.50 147 Time, Alliance Capital, 18 1140 Sixth Ave. www.murrayhill.com Principals Escada, Weiser New York, NY 10036 Hines (212) 230-2300 Tommy Craig 7.47 7.47 4.66 4.66 250 Morgan Stanley, Bear 19 885 Third Ave. www.hines.com Senior vice president Stearns, Goldman Sachs, New York, NY 10022 Deutsche Bank George Comfort & Sons Inc. (212) 481-1122 Peter S. Duncan 6.75 6.84 2.34 2.34 73 New York Life, WPP 20 200 Madison Ave. www.gcomfort.com President, chief executive Group, New York State New York, NY 10016 Dormitory Authority, Phillips-Van Heusen Trinity Real Estate (212) 602-0867 Carl Weisbrod 6.00 6.00 0.00 0.00 30 L’Oréal, WNYC 21 74 Trinity Place www.hudsonsquare.org President Foundation, Havas North New York, NY 10006 America, Weinstein Co. Adams & Co. Real Estate (212) 679-5500 David L. Levy 5.88 5.78 5.88 5.78 234 Citibank, Redcats USA, 22 411 Fifth Ave. www.adamsre.com Principal Perry Ellis International, New York, NY 10016 New York University Equity Office Properties Trust (212) 339-5100 Michael D. Berman 5.37 5.37 0.00 0.00 106 Ogilvy & Mather, Cravath 23 527 Madison Ave. www.equityoffice.com Vice president, leasing Swaine & Moore, Dewey New York, NY 10022 Gerard Schumm Ballantine, Lehman Vice president, operations Brothers Silverstein Properties Inc. (212) 490-0666 Larry A. Silverstein 4.60 5.35 0.00 0.00 150 Moody’s Investors Service, 24 7 World Trade Center www.silversteinproperties.com President, chief executive Office of the New York New York, NY 10007 State Attorney General, Cornell University, National Urban League Kaufman Management (212) 563-6262 George Kaufman 4.46 4.18 0.74 0.45 215 Time Warner, YAI 25 450 Seventh Ave. www.kaufmanorganization.com Chairman National Institute for New York, NY 10123 Steven Kaufman People with Disabilities, President Estée Lauder, Omnicom New York City includes the five boroughs: Bronx, Brooklyn, Manhattan, Queens and Staten Island. Crain’s New York Business uses staff research, extensive surveys and the most current references available to produce its lists, but there is no guarantee that these listings are complete. To qualify for this list, companies must manage commercial property in the five boroughs. 60 companies were contacted for this list. All information was provided by the companies. Commercial square feet and third-party square feet have been rounded to two decimal places. Rankings and percentages are based on rounded numbers. n/d Not disclosed. 1-Office properties only; as of June 30. 2-Office properties only; as of Dec. 31. 3-Third-party square footage refers to property managed by a company other than the owner; as of June 30. 4-Third-party square footage refers to property managed by a company other than the owner; as of Dec. 31. 5-Full-time and full-time-equivalent only, including union members and administrative employees; as of June 30. 6-Newmark entered into a global partnership with Knight Frank. effective Jan. 1, 2006. 7-Brookfield Properties Corp. acquired Trizec Properties Inc. on Oct. 5, 2006. All 2006 figures are pro forma to reflect acquisition. Research: Denise Southwood and Adrianne Pasquarelli

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26 | Crain’s New York Business | December 4, 2006 REPORT

Deals Fashion label from Japan lands in Manhattan MERIDIAN CAPITAL GROUP Meridian is one of America’s leading, IS PLEASED TO ANNOUNCE THAT IT HAS ARRANGED fastest growing mortgage brokers in FINANCING TOTALING Evisu plans flagship NYC firm stays put multifamily, hospitality, healthcare, store in SoHo; even as it strays office, industrial, and retail financing, Queens fabric firm after relocating its warehouse $165,000,000 thanks in part to our nationwide operation to North Carolina, a fab- network of key lenders and borrowers. relocates its HQ ric supply company founded in New IN COORDINATION WITH A $35,000,000 MEZZ LOAN FROM SL GREEN York 140 years ago is keeping its No matter the size of the loan, we work apanese fashion firm Evi- corporate headquarters in Long Is- su plans to open a handful of land City, Queens. with you on a personal, one-to-one U.S.stores,starting in SoHo. Stroheim & Romann, which basis every step of the way, giving The company, now head- creates fabrics, wall coverings and quartered in Hong Kong,has trimming for interior designers, each loan the same, industry-famous Jleased 3,200 square feet at moved the warehouse several FOR THE ACQUISITION OF Meridian Capital attention. 92 Greene St., between Prince months ago. It has now signed a 720 FIFTH AVENUE, NEW YORK, NY and Spring streets, for its North lease for a 16,000-square-foot exec- OVER 120,000 SQ. FT. Your loan is that important to us. American flagship. utive office at 30-00 47th Ave., at 30th The shop will open by May.Evi- Place. The asking rent at the build- PRIME RETAIL & CLASS A OFFICE PROPERTY Because it’s that important to you. su, founded by designer Hidehiko ing is $20 a square foot. BORROWER: JEFF SUTTON OF THE WHARTON REALTY CORP. Yamane, is known among teens and twentysome- things for its luxury denim, CITY WITHIN A CITY and several Manhattan Recent Long Island City leases. specialty shops already car- ry the label’s designs. Company Sq. ft. Address Louis Vuitton and La Tourneau 27,250 31-00 47th Ave. Perla operate shops nearby. “Co-tenancy was key,” says Rocket Rehearsal 9,000 33-06 37th Ave. It’s taken care of. Eric Le Goff, a Cushman Basketball City 2,000 31-00 47th Ave. & Wakefield Inc. broker who represented Evisu in the deal. “Stroheim & Romann wanted to For loans from $500,000 to over $500 million, visit us at www.meridiancapital.com or call 212-972-3600 The Lansco Corp. represented keep its headquarters in Long Is- New York 212-972-3600 • New Jersey 732-301-3200 • Pennsylvania 215-227-7700 • Maryland 301-652-6000 • Florida 561-367-0005 92-94 Greene Street Holdings in land City because it wanted to Illinois 773-439-1200 • California 310-867-2300 • Texas 972-385-7940 the 10-year lease. Asking rent was maintain its workforce,” says Ira $200 per square foot for the 2,200- Sherman, a broker at Greiner- square-foot ground floor.The space Maltz who represented the tenant. also includes a 1,000-square-foot He says his client shifted the ware- basement. house to the South because of low- Evisu operates more than 400 er costs. boutiques in Japan, and its Euro- The fabric company sold the pean flagship is on London’s Saville building at 31-11 Thomson Ave., Row. The company intends to which housed both its warehouse launch at least five other stores in and offices, to The Feil Organiza- the United States next year.Las Ve- tion for $14 million.The new land- gas, Miami and Los Angeles are lord has converted the property into among probable locations. 110,000 square feet of office space. —elisabeth butler The asking rent at the refurbished building is $23 a square foot. This is the second property Feil has acquired in Long Island City, where the office market is tight.The developer also owns the 1.1 million- square-foot building at 30-20 Thomson Ave.,down the block from Stroheim & Romann’s former site. Class A office space availability in Queens is 5%, with less than 300,000 square feet expected to come online in Long Island City over the next 12 months, according to statistics from Greiner-Maltz. —julie satow Fruit bouquet firm spoiling for city the market for ready-to-eat fruit gifts is ripening in Manhattan. Fresh Fruit Bouquet Co., based in Williston Park, L.I., has recently DOWNTOWN BOUND: Evisu’s Greene Street embarked on a plan to seed New store will have lots of high-style neighbors. See FRUIT on Page 28 101 PARK AVENUE REPORT The New Ownership of Quik Park Fruit Bouquet grows 210 WEST 89TH STREET Proudly Announces Continued from Page 27 town because they wanted the office the Acquisition of York City with stores. density,” says Kelli Mekles, the Fresh Fruit Bouquet has signed a Newmark Knight Frank Retail bro- 10-year lease for 900 square feet in ker who negotiated the deal for the 4 Premium Locations the Roosevelt Hotel,at 45 E. 45th St., tenant. between Vanderbilt and Madison Robert K. Futterman & Associ- avenues.The store,slated to open by ates represented the Roosevelt Ho- Call Quik Park today. the end of the year, is the first of five shops planned for the city. Our 30 years of experience By expanding into Manhattan, the firm is taking on the niche’s guarantees you: leader, Connecticut-based Edible Arrangements, which has 618 > stores nationwide,including 44 Higher Garage Earnings in the state and several in New 235 WEST 22ND STREET > York City. State of the Art Security Like its competitor, Fresh > Impeccable Interiors Fruit Bouquet sells chocolate- dipped pineapple and strawberry > Unparalleled Service arrangements, which can be deliv- ered for thank-you, birthday and anniversary gifts. Owners Amanda and James No-

403 EAST 65TH STREET SWEET ARRANGEMENT: A franchise deal will taris sold a New York franchise to a let Fresh Fruit Bouquet grow into Manhattan. 212.832.2066 family of entrepreneurs a few months ago. Ms. Notaris says that Rafael Llopiz x200 her company is unique because it tel. Broker Ariel Schuster says that offers three chocolate options— the property still has 5,000 square Stan Kleger x213 white, dark and milk chocolate—as feet available in two vacant sites. well as a popular cheese-and-fruit Asking rent in the Fresh Fruit Bou- bouquet. quet deal was $150 per square foot. “They were interested in mid- —elisabeth butler

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28 | Crain’s New York Business | December 4, 2006 at amazing speed. The Xerox WorkCentre C2424. Finally, a 24 ppm networked color multifunction for under $2,000. Xerox Color. It makes business sense.

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THIS WEEK’S EVENTS DECEMBER 5 DECEMBER 5 College/CUNY hold course on solving DECEMBER 6 DECEMBER 5 Networking for Professionals holds NYC Business Networking Group holds entrepreneurial challenges. 6:00 p.m. to Nonprofit Coordinating Committee of Metro New York Toastmasters Club networking reception. 1:00 p.m. to 3:00 networking reception. 6:00 p.m. to 8:00 9:00 p.m., 45-50 30th St., seventh floor, New York holds information session on holds public speaking workshop. 6:15 p.m., Opia, 130 E. 57th St. Fee: $39.90 p.m., Stone Creek, 140 E. 27th St. Free. Long Island City, Queens. Fee: $160. audit activity and proposed changes in p.m. to 8:00 p.m., Time & Life members and $49.90 nonmembers if (212) 471-8456 or [email protected]. (718) 663-8403 or 403(b) retirement plans. 9:30 a.m. to Building, 1271 Sixth Ave., second-floor preregistered before Dec. 5; additional DECEMBER 5, 19 [email protected]. 11:30 a.m., 111 E. 59th St. Free. conference room. Free. (212) 581-9468 $5 thereafter. (718) 625-1369 or BizNet, Chapter One, holds networking DECEMBER 6 (212) 502-4191, ext. 27. or [email protected]. [email protected]. meetings. 8:00 a.m. to 9:30 a.m., Access Office Inc. holds networking DECEMBER 7 DECEMBER 5 DECEMBER 5 Association of the New York City Bar, reception. 6:00 p.m. to 8:30 p.m., Sage Barnard College holds lecture on New York County Lawyers’ Asso- New York Building Congress holds 42 W. 44th St. Free. (212) 378-1720 or Theater, 711 Seventh Ave., second floor. women in politics in New York, with ciation holds networking reception. breakfast forum with Sharon [email protected]. Fee: $65. (516) 992-3494 or City Council Speaker Christine Quinn. 6:30 p.m. to 8:00 p.m., Fashion Forty, Greenberger, president of the New DECEMBER 6 [email protected]. 6:00 p.m. to 7:00 p.m., 3009 Broadway, 202 W. 40th St. Fee: $5. York City School Construction All Avenues NY holds networking DECEMBER 6 Barnard Hall, James Room. Free. (646) 375-2195. Authority. 8:00 a.m. to 9:30 a.m., reception. 6:00 p.m. to 9:00 p.m., Link Bond Schoeneck & King holds seminar (212) 854-4214 or Sheraton New York, 811 Seventh Ave., Restaurant, 120 E. 15th St. Free. on employee retaliation claims after [email protected]. More meetings online at Metropolitan West Room. Fee: $55 (646) 372-3780 or Burlington-Northern. 8:30 a.m. to 11:00 DECEMBER 8 www.newyorkbusiness.com members, $75 nonmembers. [email protected]. a.m., Yale Club, 50 Vanderbilt Ave. Fee: Crain’s New York Business holds Click on “Events” (212) 481-9230 or DECEMBER 6 $75, $50 for clients of Bond Schoeneck networking breakfast and program with [email protected]. NY Designs and LaGuardia Community & King. (800) 339-8897 or www.bsk.com. Stephen Berger, chairman of the NYS Commission on Health Care Facilities in the 21st Century. 8:00 a.m. to 9:30 a.m., Grand Hyatt Hotel, East 42nd Street and Grand Central Terminal. Fee: $60. (212) 210-0739 or www.newyorkbusiness.com/calendar.cms. DECEMBER 8 Magazine Publishers of America holds seminar on managing brands across multiple content platforms. 12:00 p.m. to 2:00 p.m., 810 Seventh Ave., 24th floor. Fee: $125 members, $225 nonmembers. (212) 872-3767 or [email protected]. DECEMBER 11-17 DECEMBER 12 Special Libraries Association, New York chapter, holds program with Don Tapscott, founder and CEO of New Paradigm. 5:30 p.m. to 8:30 p.m., CIBC Auditorium, 300 Madison Ave. Free. Advance registration required. (212) 951-2102 or [email protected]. DECEMBER 13 Benevon holds seminar on sustainable funding. 8:30 a.m. to 10:30 a.m., Actors Theatre Workshop, 145 W. 28th St., third floor. Free. Registration required. (206) 709-9400, ext. 115, or [email protected]. DECEMBER 13 Retail Marketing Society holds lunch program on the psychology of today’s recreational shoppers. 12:00 p.m. to 2:00 p.m., Williams Club, 24 E. 39th St. Fee: $50 members, $75 nonmembers. (201) 692-8087 or retailmarketingsoci @retailmarketingsociety.org. DECEMBER 13 South Bronx Overall Economic Development Corp. and New Jersey Transit hold workshop on how to do business with New Jersey Transit. 3:00 p.m. to 4:30 p.m., 555 Bergen Ave., third floor, the Bronx. Free. (718) 732-7547. DECEMBER 13 Asian Women in Business holds networking reception. 6:00 p.m. to 9:00 p.m., 12 W. 18th St., #3E. Fee: $20 members, $45 nonmembers. (212) 868-1368 or [email protected]. DECEMBER 14 Association for Accounting Marketing, New York metropolitan chapter, holds program on increasing accountability through pipeline management. 8:30 a.m. to 10:00 a.m., Cornell Club, 6 E. 44th St. Fee: $70 members, $80 nonmembers. (212) 859-7375 or [email protected]. —adrianne pasquarelli

TO LIST YOUR EVENT

Crain’s lists business meetings online and includes them in the print edition on a space-available basis. Events in New York City with admission fees of less than $300 are considered for the print publication. Listings can be submitted only through the Crain’s Web site. To submit a calendar listing, go to www.newyorkbusiness.com and click on “Events.” Sponsors have a choice of several free or paid list- ing options. All business events will be posted online within two business days. Crain’s can neither confirm receipt of listings nor say if or when event listings will appear in the print edition.

30 | Crain’s New York Business | December 4, 2006 Everything you think is true about air travel isn’t.

2-3 hour check-in? 30 minute check-in.

A trek through a crowded terminal? A private air terminal in London.

Compete with 300+ passengers? Travel with only 100 others.

Wasted time in the departure lounge? Go straight on board.

Sit where you’re told? Choose where to sit in advance.

Cramped, uncomfortable seating? Award-winning flat bed.

Eat what you’re given? Pre-order what you eat.

Entertainment the crew switch on and off? An entertainment center you control.

A flood-lit cabin? Individual in-seat lighting only.

Constant announcements? Minimal announcements.

Sleep when you’re told? The longest possible time to sleep.

Cart and other cabin noise? No carts and a quiet cabin.

Demoralized, inattentive crew? Enthusiastic, dedicated crew.

London, business class – around $3,500 one way? London, Silver Class from $899 one way.*

*Based on round trip purchase, excluding taxes and charges. fly .com JOB PLACEMENT RATES for Nerds No. 1 for jobs in finance, other posts graduates of NYC’s top engineering schools Continued from Page 2 new recruits are starting with com- ing graduates compelling packages cal—excel at problem solving.They energy and currency trading. Engi- pensation of as much as $70,000,in- for relocation. can handle just about any business TO neering students, not long ago con- cluding sign-on bonuses of $5,000 “Some of our students have so issue, from pricing derivatives to 75% 90% sidered math nerds more suitable for to $10,000, placement counselors at many opportunities, they come to complying with Sarbanes-Oxley WITHIN 12 TO 18 MONTHS back-office operations and con- engineering schools say. me confused,” says Rhea Christian, rules. HIGH SCHOOL SENIORS expected struction sites, are suddenly calling associate director of recruiting pro- “We’ve reached an era where Top dollar to attend the CCNY engineering the shots in a job market where grams for City College of New problems have become so complex,” school’s fall open house graduates with math and analytical this year, financial and other firms York’s Grove School of Engineer- says Guillermo Gallego, chairman skills are scarce. nationwide are hiring engineering ing.CCNY saw an 18% increase this of the industrial engineering de- Local investment banks, retail- graduates at salaries greater than year in the number of employers partment at Columbia University. 1,500 ers, and biotech and power compa- those for individuals with bachelor’s coming to its engineering and sci- “It’s not surprising that companies UP FROM 500 LAST YEAR nies are locking in engineering stu- degrees in any other discipline, ac- ence job fair. are trying to keep ahead by finding dents as early as junior year, pulling cording to the National Association Companies today want employ- people who can do things in a them away from the city’s booming of Colleges and Employers. What’s ees like Ms. Emelumadu because smarter way.” dents they can choose from is dwin- construction and information tech- more,out-of-state and overseas em- students of all types of engineer- The problem for many employ- dling. The number of engineering nology businesses. In some cases, ployers are offering these engineer- ing—civil, electrical and chemi- ers is that the pool of qualified stu- graduates nationwide has been in steady decline for the past two decades, down about 22% since 1986, according to the Alliance for Science & Technology Research in America.High school students with sufficient math and science skills to qualify for engineering programs have been especially scarce in urban areas such as New York, where pub- lic school performance in these sub- Getting health care right … Together. jects has been notoriously poor. New courses to respond to employers’ needs Health care is hard. It’s hard for everyone: employers, patients, and to lure more students, New York’s engineering schools have physicians, hospitals and, at times, even us. been developing new courses over the past couple of years.The Cooper

But health care is too important to be this hard. ‘Some of our students Together with America’s leading employers, Uniprise is working have so many to make health care work better: improving access, quality, opportunities, usability and affordability. they’re confused’

We start with the basics: paying claims correctly the first time, supporting people as they navigate the complex health care system,

and freeing physicians to practice medicine not process paperwork. Union began the push five years ago, when it started offering students etiquette and networking training But we can’t stop there. Together, we are building new capabilities to help dispel the image of the so- cially awkward geek wearing a that will radically change how health care works – for the better. pocket protector. “I can’t change their whole per- We are leading the drive to consumer-directed care and patient sonality, but I can teach them how to use the right silverware,” says empowerment; integrating financial services and health care Eleanor Baum, dean of The Coop- through one integrated ID card, and paying claims in real time. er Union’s engineering department. The changes in curriculum are These are real shifts in how the system works, making it work paying off. Freshman enrollment in CCNY’s engineering program was better for everyone. up 18% in 2006 versus year-earlier levels, while enrollment in Poly- technic University’s program rose Uniprise is proud to be working with our great partners in 16%. Officials at Columbia’s engi- neering school say early-admission this effort — our employer customers, consumers, physicians applications for 2007 so far are up by 40% to 50% compared with last and the consultant community. We are changing the face year’s levels. The padded rolls may not help of health care ... Together. local employers desperate for quali- fied employees,since many students choose jobs outside the city. Com- panies from as far away as Singapore are recruiting New York graduates with fat pay packages. “Salaries are just as competitive, and the cost of living is lower else- together where,” says CCNY’s Ms. Christ- ian.“Companies outside the city are drawing out the talent.”

COMMENTS? [email protected]

32 | Crain’s New York Business | December 4, 2006 “Installed disco floor to boost office morale.” –Elaine Barker, business owner

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Issued by HSBC Bank USA, N.A. Member FDIC ©2006 HSBC Bank USA, N.A. market analyst at the state Depart- ment of Labor. “Tech spending is Rare species: NY tech workers on the rise.” The surge in jobs has offset the Continued from Page 1 ing its weather derivatives trading another two or three hires by the end outsourcing of IT jobs to India and and financial services firms. Addi- technology to financial services of the year, I would be happy.” China. Some experts say that it may tionally, the trend of sending jobs firms three years ago. While it re- Outside of the tech sector, much even signal a slowdown in offshore offshore is ebbing. cently added two people to its staff of the growth is being driven by the outsourcing. An increase in venture capital is of 10,the company had much bigger finance sector, where companies are fueling much of the job growth. aspirations when it relocated building up their internal IT Overseas opportunities Venture firms injected $390 million to a larger office in the Flat- departments. Citigroup, be- “companies that can’t find skilled into 56 New York area companies in iron district this year. lieved to be the top IT em- workers will continue to go over- the third quarter, up 19% from a “We wanted to bring on 475NUMBER ployer in Manhattan, has seas,” says Scot Melland, chief ex- of IT job year ago. 10 more people this quar- openings some 475 job openings on its ecutive of Dice.com,a job Web site. ter,” says YellowJacket Pres- on Citigroup’s Web site, according to Skill- “However, offshore jobs are still a

Rapid growth ident Jacob Pechenik, who Web site Proof—triple the number small portion of the overall labor jennifer chiu earlier this month,YellowJacket spent a few hours a day re- last year. market.’’ He estimates that there Software raised $2.6 million in ven- viewing résumés before paying an “Our tech demand comes from are 1 million outsourced workers the United States. ture funding. Its client base has outside recruiter to help sort financial companies. They’re hav- overseas,compared with the rough- Ironically, the misconception grown five times since it started sell- through candidates. “If we can do ing good years,” says Jim Brown, a ly 10 million tech professionals in that most IT jobs will eventually go offshore has dissuaded many people from pursuing a career in the field. The decline in computer science majors has hit New York, a city not known for producing high-tech in- novators, especially hard. Gil Arbel,chief executive of soft- ware security provider Counter- Storm Inc.,says the tight job market led him to allow one employee, who relocated to Texas, to remain with the company. “We didn’t bother to try to find a replacement,” he says. “It is impos- sible to find someone with his skills in network security research and de- velopment in New York.”

COMMENTS? [email protected]

FREE TRIALS OF CRAIN’S ONLINE NEWSLETTERS CRAIN’S OFFERS READERS free two-week trial subscriptions to its online newsletters, Crain’s Health Pulse and The Crain’s Insider. Pulse deals with the business of health care. It sup- plies information on mergers, contracts, executive appoint- ments, regulatory actions and legislative developments in metro New York. An annual subscription costs $295. The one-page news- letter is available by 6 a.m., Mon- day through Friday. Subscribers receive Pulse Extra, an additional page, on Wednesdays. The Crain’s Insider covers polit- ical gossip and government and political issues of importance to exec- utives, lobbyists and others inter- ested in the inner workings of city and state government. The one-page newsletter is available by 6 a.m., Tuesday through Friday. An annual subscription is $250. For your two-week trial, go to www.NewYorkBusiness.com. Click on Health Pulse or Insider under “Features” on the upper left side of the page. In the blue tools box, click on “Request a Free Trial.” After registering, you will receive e-mail confirmation with instruc- tions on accessing the trial issues.

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Secretary of State is designated www.QBTrainer.net Office location:New York County. SS has been LP upon whom process against it may be as agent upon whom process against 212-767-1500 or 212-332-8162 designated as agent of the LLC upon whom served. SSNY shall mail copy of process to [email protected]. EMERGENCY the LLC may be served. Secretary of State process against it may be served. SSNY shall 200 Park Ave., Ste. 3900, NY, NY 10166. DE shall mail a copy of any process against the COMMUNICATIONS mail a copy of process to LLC c/o Joyce Sheena, office addr.: CSC, 2711 Centerville Rd., LLC served upon him/her to C/O SOVEREIGN ART 1349 Lexington Ave. #10E, NY, NY 10128. Wilmington, DE 19808. Cert. of LP on file: PARTNERS, LLC, 38 E. 57TH ST., NEW Purpose: For any lawful purpose. Liquidation: Publishers graphic SYSTEMS SSDE, Townsend Bldg., Dover, DE 19901. YORK, NY 10022. LATEST DATE TO Name/addr. of each gen. ptr. avail. at SSNY. DISSOLVE: DECEMBER 31, 2036. Purpose: and fine art collection. SPECIALISTS Notice of Formation of Copernicus Institutional Purpose: any lawful activities. To engage in any lawful act or activity. Call 212-620-3735 or email: Investors, LLC. Arts. of Org. filed with NY [email protected] • FREE PICKUP Dept. of State on 10/17/06. Office location: NY Notice of Formation of Integrated Builders WAGRAM INTERNATIONAL LLC, AND County. Secy. of State designated as agent of LLC. Arts. of Org. filed with Secy. of State Articles of Org. filed N.Y. Sec. of State BOOKKEEPING SERVICES DELIVERY LLC upon whom process against it may be of NY (SSNY) on 10/31/05, as amended. (SSNY) 12th day of October, 2006. Office in served. Secy. of State shall mail process to: Office location: NY County. SSNY designated New York Co. at 400 West 37th St, Ste 12A, • 48 HOUR 327 Central Park West, Ste. 12C, NY, NY as agent of LLC upon whom process New York, NY 10018. SSNY design. Agt. TURNAROUND ON 10025, principal business address of the LLC. against it may be served. SSNY shall mail Upon whom process may be served. SSNY REPAIRS Purpose: any lawful activity. process to: 5 W. 19th St., NY, NY 10011. shall mail copy of process to 400 West Purpose: any lawful activity. 37th, Ste 12A,New York, NY 10018. reg. • FREE ENGRAVING Agt. upon whom process may be served: NOTICE OF FORMATION OF LIMITED Notice of Formation of 43 Orchard Realty Spiegel & Utrera,P.A.,P.C. 45 John Street, • SHORT AND LONG LIABILITY COMPANY. Name: HAMPTONS LLC. Arts. of Org. filed with Secy. of State TERM RENTALS NYC 10038 1 800 576-1100 Purpose: Any MEDIA, LLC. Application for Authority was of NY (SSNY) on 5/19/06. Office location: lawful purpose. filed with the Secretary of State of New York NY Co. SSNY designated as agent of LLC (SSNY) on 10/24/06. The LLC was originally upon whom process against it may be BUSINESS BROKER filed with the Secretary of State Nevada on served. SSNY shall mail process to: c/o The Notice of Formation of ATJ CONSULTING, LLC, a domestic Limited Liability Company The largest Motorola Dealer in New York State 09/18/06. Office location: New York County. Icon Group, 420 Lexington Ave, Ste 2860, SSNY has been designated as agent of LLC NY, NY 10170. Purpose: any lawful (LLC). Articles of Organization filed with Selling Your Business? 307 Fifth Avenue, NY 10016 activities. Secretary of State on 10/13/2000. NY Office The Place to Go to Buy or Sell a Business upon whom process against it may be served. SSNY shall mail a copy of process to the LLC, location: NEW YORK County. Secretary of The Nations Largest Brokerage Firm 212-532-7400 Notice of Formation of Robert D. Glatter, M.D., 257 Park Avenue South, 5th Floor, New York, State is designated as agent upon whom • No Fee to List • Free Consultation www.metrocomradio.com PLLC. Arts. of Org. filed with NY Dept. of State New York 10010. Purpose: For any lawful process against the LLC may be served. • Confidential on 11/6/06. Office location: NY County. Secy. purpose Secretary of State shall mail a copy of any Sunbelt Business Brokers of State designated as agent of PLLC upon process against the LLC served upon 212-588-9977 PUBLIC & LEGAL NOTICES whom process against it may be served. Secy. him/her to C/O ANNA M. BOUTZALIS www.sunbeltny.com Notice of Formation of ROCKVIEW of State shall mail process to the principal CPA, 265 POST AVE., STE. 130, NYBOT, LLC. Arts. of Org. filed with business address of the PLLC: 17 W. 67th St., WESTBURY, NY 11590. DURATION BUSINESS OPPORTUNITY LEGAL NOTICE Notice of Application Secy. of State of NY (SSNY) on Apt. 1E, NY, NY 10023. Purpose: practice the DATE: 10/10/2030. Purpose: To engage in for Authority of limited liability company 10/6/2006. Office location: NY County. profession of medicine. any lawful act or activity. (LLC) Name: 51st and Eleventh, LLC SSNY designated as agent of LLC upon ACQUISITION Application for Authority filed with the whom process against it may be served. REQUEST FOR QUALIFICATIONS OPPORTUNITY Department of State of New York on SSNY shall mail process to: National October 05, 2006. The jurisdiction of its Registered Agents, Inc, 875 Ave of the City of Bridgeport & Bridgeport Housing Authority Americas, Ste 501, NY, NY 10001 formation is Delaware. The date of its Purpose: any lawful activities. Requests for Qualifications (RFQ) Profitable branded women’s formation is July 19, 2006. Office location: apparel manufacturer New York County. The Secretary of State Notice of Appl. For Auth. 653 Eleventh Ave LLC The City of Bridgeport & the Bridgeport Housing Authority available for purchase. of New York (SSNY) is designated as agent a foreign limited liability company (LLC). Appl are seeking responses from qualified developers to design, of LLC upon whom process against it may For Auth. Filed with Secy. of State of NY (SSNY) construct and operate a high-quality, mixed-use project on 10 $20MM company sells to loyal be served. The principal business location is on 7/13/05. LLC Organized in DE on 6/30/05. NY customers through boutiques. c/o Potamkin Cadillac, 798 11th Ave., New office location: New York County. SSNY acres located in Downtown Bridgeport. The development site is designated as agent of the LLC upon whom Not fashion-dependent. York, NY 10019. The address SSNY shall process against it may be served. SSNY shall mail located adjacent to the city’s existing 5,000 seat Ballpark and mail copy of process to is c/o Potamkin [email protected] copy of process to: c/o Horizen Global, LLC, 10,000 seat multi-purpose arena. The site is located next to the Automative Group, Inc., 6600 Cowpen Rd., 9 East 19th Street, 6th Floor, New York, NY 10003. exit & entrance ramps for Interstate 95 & the Rt. 8/25 Connector. 310-564-7583 (200), Miami, FL 33014. The address of the A copy of the Cert. of Form, is on file with State office required to be maintained in the of Delaware, Division of Corporation, 401 Federal Contemplated uses can include, but are not limited to, a mix BUSINESS SERVICES jurisdiction of its formation is c/o National Street, Ste. 4, Dover, DE 19901. Purpose: Any of residential (including hotel), retail, commercial and enter- lawful act or activity. Registered Agents, Inc., 160 Greentree Dr., tainment facilities. Proximity to the city’s nearby intermodal 9/11: We Will Never Forget Ste. 101, Dover, DE 19904. The name and NEW YORK INCLUDES: State Filing Fees, Notice of Formation of New York transportation facility provides a unique opportunity to capitalize Company Seal & Book, Certificate of address of the authorized officer in the Cardiovascular Associates, PLLC. Arts. of CORPORATION Incorporation or Organization, Company jurisdiction of formation where a copy of its upon transit-oriented development principles. Proposed uses $16 4 95 Minutes, Corporate ByLaws, Stock/ Org. filed with Secy. of State of NY (SSNY) on COMPLETE Membership Certificate, Preliminary certificate of formation is filed is Delaware 3/25/2004. Office location: NY County. should reinforce this vision and have a landmark quality in their CALL FOR FREE Name Search, Attorney’s Fee INFORMATION www.amerilawyer®.com Division of Corporations, 401 Federal St., SSNY designated as agent of LLC upon whom PACKET process against it may be served. SSNY shall design. The property, when developed, would offer commanding NEW YORK LLC (212) 962-1000 (516) 338-9100 Ste. 4, Dover, DE 19901 95 NEW YORK CITY LONG ISLAND mail process to: c/o Epstein Becker & Green, views of the Long Island Sound and be highly visible from $234 Spiegel & Utrera, P.A., P.C. COMPLETE 45 John St., Suite 711; NYC © L. Spiegel P.C., 250 Park Ave, NY, NY 10177-0077, attn Notice of Formation of Goldpoint Capital Philip M. Gassel, Esq. Purpose: practice of Interstate 95. Rent A Locker Management LLC, Art. of Org. filed Sec'y of medicine with a specialty in cardiology. This RFQ will result in a short list of developers and/or State (SSNY) 12/28/01. Office location: NY Self Storage Lockers: day/month (also desk space) County. SSNY designated as agent of LLC development teams who will be invited to submit proposals in Record Storage: $1/m + many other services Notice of Formation of Fix Flyer LLC, filed upon whom process against it may be served. under the original name FixML Flyer, LLC, Art. response to a subsequent RFP. 147 w 35th St. 212-947-0026 SSNY shall mail copy of process to Attn: of Org. filed Sec'y of State (SSNY) 10/6/03. Anthony F. Bruan, 18 East 41st St., 20th Fl., The Bridgeport Economic Resource Center (BERC) has CAR SERVICE Office location: NY County. SSNY designated NY, NY 10017. Purpose: any lawful activities. as agent of LLC upon whom process against it been retained by the City and the Bridgeport Housing Authority Personal chauffeur with SUV may be served. SSNY shall mail copy of to manage the RFQ/RFP process. Copies of the RFQ may be 349 E. 10TH STREET, LLC Articles of available for business or pleasure. process to 210 East 68th St., 1G, NY, NY obtained at the offices of BERC, Ten Middle Street, 6 fl Org. filed NY Sec. of State (SSNY) 10021. Purpose: any lawful activities. Comfort and convenience. 9/7/2006. Office in New York Co. SSNY Bridgeport, CT 06604 (203 335-1108) or online at Reservations (732) 586-0886 desig. agent of LLC upon whom process may be served. SSNY shall mail copy of Notice of Qualification of Lexa Partners LLC. www.bridgeport-econ.org FINANCIAL PLANNER process to 270 Lafayette Street - 4th Floor, Authority filed with NY Dept. of State on 10/30/06. Office location: NY County. LLC RFQ Responses are due by 5:00 p.m. on January 30, 2007 a New York, N.Y. 10012. Purpose: Any lawful purpose. formed in Delaware (DE) on 1/18/02. Secy. of State designated as agent of LLC upon whom process against it may be served. Secy. of State REAL ESTATE Urbecon LLC Articles of org. filed NY Sec. shall mail process to: c/o CT Corporation of State (SSNY)10/25/2006. Office in New York Co. SSNY desig. agent of LLC upon System, 111 8th Ave., NY, NY 10011, OFFICE SPACE whom process may be served. SSNY registered agent upon whom process may be shall mail copy of process to 40 West 105th served. DE address of LLC: 1209 Orange St., St., New York, New York 10025. Purpose: Wilmington, DE 19801. Arts. of Org. filed with Any lawful purpose. DE Secy. of State, 401 Federal St., Ste. 4, EXECUTIVE OFFICE SUITES Dover, DE 19901. Purpose: any lawful activity. LUXURY PROPERTIES Notice of formation of Edge Wealth 212.573.0909 Management LLC. Arts. of Org. filed with the Notice of Formation of Cohen Adams, MIAMI BEACH/FLORIDA Secy. of State of NY (SSNY) on 10/20/2006. LLC Arts. of Org. filed with the Secy. of Office location: 675 Third Avenue, Ste. 2800, FurnishedOfficesNYC.com NY, NY in NY County. SSNY is designated as State of NY (SSNY) on 10/12/06. TRUMP OCEANFRONT CONDOS agent of the LLC upon whom process against Office location: NY County. MIDTOWN COMMERCIAL CLASS A SOHO BLDG. OWN YOUR LUXURY CONDO TODAY! it may be served. The person to whom SSNY SSNY designated as agent of LLC upon REAL ESTATE Several large, windowed offices. TRUMP GRANDE & TRUMP TOWERS shall mail a copy of any process, and the whom process against it may be served. For All office & loft SPACES Buy directly from the Developer & Save $$ 24/7 security, reception, pantry, T-1. registered agent of the LLC upon whom SSNY shall mail process to: c/o Barton 500-50,000 SF Furnished Condo Hotel units from $325k process against the LLC may be served, is: Also available, 5000 sq ft. Ideal for 1-4 Bedrm Residential Condos from $875k Barton & Plotkin, LLP, 420 Lexington UNDER MARKET SUBLETS-NO FEE! Scott Ziegler, c/o Ziegler, Ziegler & Assoc., Search our listings @ www.midcomre.com firm seeking its own identity. Ask for details on our FLY-BUY Program 570 Lexington Ave., 44th Fl, NY, NY 10022. Avenue, NY, NY 10170 Call Exclusively Baronoff 305.213.3606 Purpose: any lawful activity. Purpose: any lawful activity. Call Paul 212 947-5500 x 100 Terry 212.226.2376 x202

36 | Crain’s New York Business | December 4, 2006 weeks before the report’s POSSIBLE LITIGANTS findings were released. Seeking refuge from Berger Lawyers say that filing for Institutions considered likely to file suit to fight Chapter 11 won’t necessarily Continued from Page 1 law,” says Mr. Walsh. His firm also New York City’s multibillion-dollar the Berger commission’s recommendations: keep the state at bay. of hospital beds by 4,200—or 7% of has received inquiries from several municipal system. ■ Ordered to close ■ Ordered to restructure “These are uncharted wa- the total—as the state attempts to hospitals about possible lawsuits. Many observers had predicted ters,” says Mr. Walsh. cut its $45 billion annual Medicaid Furthermore, Mr. Ruggiero that Metropolitan Hospital in East METRO NEW YORK bill by $1.5 billion. Unless the state charges that the panel’s closed-door Harlem, an HHC facility on the Cabrini Medical Center, Manhattan Judges vs. New York state Legislature votes by Dec. 31 to re- sessions were illegal. overbedded east side of Manhattan, New York Downtown Hospital, Manhattan the bankruptcy court’s job ject the report’s recommendations, “This was a politically appointed would be targeted for closure. In- St. Vincent’s Midtown, Manhattan is to protect a debtor’s credi- the health commissioner must enact commission operating in secret, stead, the panel called on privately tors—a legal principle that Victory Memorial Hospital, Brooklyn all of the changes. whose conclusions are often the op- owned North General Hospital to buttresses the argument for So far, only the Catholic Health posite of those reached by its own seek a merger with Mount Sinai Parkway Hospital, Queens keeping a hospital open and System in Buffalo and its St. Joseph advisory committees,” he says. Medical Center, with which it al- Community Hospital at Dobbs Ferry, protecting its operating cer- Hospital have turned to the courts. ready has some joint ventures. Westchester County tificate as an asset. If a judge Their suit argues that as a private Lawsuits’ effects Facilities that don’t want to go The faculty union for State University of adheres to that theory, the enterprise,the system can do what it while mr. ruggiero believes that quietly won’t be getting help from New York teaching hospitals in Brooklyn; state would have to prove wants with its property,and that the the hospitals have a good chance of the Greater New York Hospital Stony Brook, L.I.; and Syracuse that there is an imminent First Amendment protects a reli- permanently stopping implementa- Association, the Healthcare As- UPSTATE NEW YORK danger to public safety in or- gious institution’s pursuit of its mis- tion of the recommendations by fil- sociation of New York State or Bellevue Woman’s Hospital, Schenectady der to lift a hospital’s license. sion to care for the poor. ing suits, others say this is more like- health care union 1199 SEIU. All Mr. Berger, while agree- Catholic Health System*, Buffalo However, Timothy Walsh, a ly to simply delay the process, for have said that they intend to stand ing that the bankruptcy issue partner at DLA Piper in Manhattan months or perhaps years. by their two-year-old agreement St. Joseph Hospital*, Buffalo is thorny, hopes that the who specializes in bankruptcy, says Some lawyers point out that many not to take issue with the report’s Kaleida Health, Buffalo judges involved will take his the strongest legal argument may be hospitals lack the resources to sue. findings. DeGraff Memorial Hospital, Buffalo report seriously. that the commission denied hospi- Legal action is expensive, and the re- With the doomed hospitals left Millard Fillmore Gates Circle Hospital, “If I were a bankruptcy tals their constitutional right to due port targets mostly small, financially to fend for themselves,some experts Buffalo court judge, I’d be impressed process. ailing hospitals, not ones with polit- are predicting that a number of fa- *Has already filed suit. with the work this commis- “By unilaterally making a recom- ical clout and deep pockets. cilities will seek shelter from the sion has done,and I’d be hap- mendation that a facility close, the “It would be different if they had commission beneath the robes of py to clear my calendar of Berger commission is taking away picked on HHC,”says one Manhat- federal bankruptcy court judges. Hospital in Brooklyn, which the some of these cases,” he says. its certificate to operate without giv- tan health care lawyer—referring to That was apparently the strate- commission wants to close. They ing it a hearing, as required by state the Health and Hospitals Corp., gy of officials at Victory Memorial sought Chapter 11 protection just COMMENTS? [email protected]

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December 4, 2006 | Crain’s New York Business | 37 NY firms seen as LBO candidates Continued from Page 1 back into the market, reaping enor- Haines. That bid would represent a buyout candidate. mous profits along the way. 13% premium over the company’s “People can afford to dream big- Among New York’s bumper crop current market price, and with the ger than ever before,” says George of candidates, Marsh & McLennan stock trading 30% below prescandal Pfeil, a managing director at G.L. Cos. is widely seen as the hottest levels,the board would face pressure Ohrstrom & Co., a Manhattan- LBO prospect. The insurance bro- to accept. based private equity firm. “There’s ker is still trying to recover from the Speculation centers on KKR be- over $200 billion of dry powder sit- bid-rigging scandal uncovered by cause it did a similar deal in 1998. HOT CARS: Avis ting on the sidelines, just waiting to New York Attorney General Eliot Back then, KKR bought out insur- Budget Group’s be spent.” Spitzer’s office two years ago. ance broker Willis Group Hold- strong brands may And these days, people have ings Ltd. for $300 million and sub- draw buyout bids.

good reason to spend it. By teaming Tempting prey sequently took it public again, newsbloomberg up with corporate chieftains,private legendary lbo shop kkk could netting more than $2.5 billion in equity firms can use their cash bid $35 a share—or a total of the process. large on many lists of likely LBOs. ing businesses and changed its hoards to take companies private, $19 billion—to take Marsh private, Another battered name, Avis In the past year, Avis has shed its name from Cendant. For all the restructure them and then sell them says CreditSights analyst Rob Budget Group Inc., also looms hotel, real estate and travel-book- turmoil, the company still has at- tractive brands, and with a market capitalization of $2 billion,it would make an easy meal for many LBO outfits. Inspiration for such a feast comes from the example of archrival Hertz, which was taken private late last year and just last month went public again. Merrill Lynch & Co. and two other private equity players invested $750 million in Hertz last December. Since then, Merrill has grossed $1.5 billion on the deal from dividends, fees and the value of the shares Merrill still owns. “Not bad for about one year’s work,” says Sanford C. Bernstein analyst Brad Hintz. In the wake of last month’s an- nouncement of the $36 billion Weʼve all seen the New York City skyline. LBO of Equity Office Properties Trust, the nation’s largest commer- cial property owner, several other New York area real estate invest- ment trusts have also become hot candidates. Weʼre more interested in your views. “I’d be surprised if another REIT didn’t go private very soon,” says CreditSights’ Mr. Haines. Leveraging up he predicts that a 15% premium would be enough to persuade Vor- nado Realty Trust investors to ac- cept an LBO offer, which translates to about $145 a share, or a $21 bil- lion deal. Going private would give Vornado the flexibility to take on more debt: Most publicly traded REITs are restricted from carrying debt equal to more than 40% of their total market capitalization, due to agreements with cautious bondholders who remember the last time real estate prices tanked in Cohen & Perfetto: A personalized approach to real estate law. the early 1990s. Itʼs a simple, but profound, premise: Each client represents an important relationship. But Mr. Haines says that banks And every one of those relationships demands our complete attention and dedication. would be comfortable seeing Vor- nado’s debt load mount to 70%. At Cohen & Perfetto, this is the philosophy that drives us. We make the connections They would advance another that build these relationships, adding depth and value to every partnership we forge, $5 billion, in addition to the $7 bil- and every transaction that transpires. Whether your needs involve real estate, govern- lion already on its books, without ment incentives, banking, zoning, or litigation, itʼs not just a deal to us: Itʼs your deal. breaking a sweat. Similarly, Liz Claiborne Inc. is Learn more at www.cohenperfetto.com. considered a solid LBO target in part because analysts figure it can take on a lot more debt. The theory is that with more money, the com- pany could grow even faster—and quickly make a sharp-eyed acquirer rich. 444 Madison Avenue, 5th Floor Liz Claiborne’s debt-to-market C New York, NY 10022 capitalization ratio is only about P COHEN & PERFETTO LLP Tel: 212-488-1300 Fax 212-813-0767 25%. Rival Jones Apparel Group Attorneys at Law www.cohenperfetto.com clocks in at 51%. “If Jones can survive given that sort of leverage,” Credit Suisse’s Mr. Jersey says, “why not Liz?”

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38 | Crain’s New York Business | December 4, 2006 EATING OUT BUSINESS “You just really have Family fare to push through ob lape offers a what you have to quintessentially New push through.” BYork dining quintet for –Amy Riordan, times when family or friends marketing director, Doncaster are in town and you don’t feel Page 40 like cooking.

DAVID KAUFMAN of Rothstein Katz is so used to pressure that he gets anxious when there’s none.

THE SEA GRILL, 19 W. 49th St. (above). While watching ice skaters in the glow of the giant Christmas tree, feast on Ed Brown’s splendidly simple seafood served at this jewel of Rockefeller Center dining. A holiday must and longtime personal favorite. MARSEILLE, 630 Ninth Ave. (at West 44th Street). Perfect for Times Square-Theater District dining, chef Andy D’Amico’s Mediterranean mecca provides first-rate French and North African fare, quick and friendly service, and impressive bang for the buck. RUBY FOO’S DIM SUM & SUSHI PALACE, 2182 Broadway (at West 78th Street).This delightful duplex features a colorful atmosphere, full- flavored Chinese and Japanese food, and, surprisingly, one of the best chocolate layer cakes in town. Reasonable, too. There’s a second location at Times Square. buck ennis

BY TOM FREDRICKSON is the season to be jolly. No, ’tis the season to be stressed. TERRACE IN THE SKY, 114 W. Holiday 119th St. (above). Great views Ask Jennifer Abelson. from atop Columbia’s Butler She and her husband celebrate both Christmas and Hall are echoed by stunning Hanukkah and have a slew of family birthday parties to presentations of contemporary stress attend. In between, she’s jetting around helping her tech continental cuisine. Fine for lunch or brunch; very clients prepare to launch products in the new year. romantic by candlelight. Oh, yeah; she’s also three months pregnant with her QUALITY MEATS, 57 W. 58th tests second child and sick most mornings. St. No visit to New York is Busy New Yorkers find “With all my travel, this is the worst year ever,” says the public relations executive. complete without ways to cope with Many New Yorkers find that December is the reason to be teary. Hardest hit are experiencing the succulent ’Tthe people whose jobs require them to be in high gear as they supply holiday-related pleasures of a steak house. December time crunch products or services or rush to meet year-end See COPING WITH DECEMBER on Page 40 This newcomer, deftly designed to look like a meat locker, offers some of the UNDER PRESSURE finest preparations of aged Percentage of people beef and fresh seafood in the 61% 42% 34% 24% 23% 19% 10% city. I love it for its diversity stressed by causes Lack of money Pressure of giving Lack of time to Pressure of family Dealing with Staying on Issues with and its desserts. Source: American Psychological Association survey to buy gifts & getting gifts shop & celebrate gatherings credit card debt a sensible diet their children

December 4, 2006 | Crain’s New York Business | 39 POWER RETAIL ON THE SQUARE 23,121 SF. of retail space overlooking Union Square BUSINESS LIVES • Private ground level entrances on 17th Street/Union Square North & Park Avenue South • High Ceilings Coping with December crunch Continued from Page 39 deadlines. Personal demands also TIPS FOR THE OVERSTRESSED take a toll, particularly for women, who typically have the lion’s share of SCHEDULE ALL SOCIAL EVENTS and activities with parents, kids and others Entire Second withFloor 14’ Approx. Ceiling 16,516 Height SF child care responsibilities. on shared scheduling software. Some New Yorkers say they FORCE YOURSELF to take mini-breaks—go out for lunch or take an overnight Possible entrance wouldn’t want it any other way. with existing Second Floor shopping trip. passenger elevator “I am a New Yorker, so I thrive Approx. on pressure,” says David Kaufman, GO MOBILE with a BlackBerry or other wireless device. You may work longer 4,200 SF 15’ 10” a partner in the Manhattan office of hours, but you’ll get to see more of your family. Sephora Sephora East Building17thEntrance Street/Union Freight Square North Ceiling Height accounting firm Rothstein Katz, CONSIDER GIFT AGREEMENTS with other family members whereby you give who annually attends more than 20 • 150’ frontage 2nd level presents only to the children, or to relatives whose names you draw. Building holiday parties thrown by clients. Lobby SF. “When I go out to my place on THINK ABOUT WORKING for a smaller, privately held employer that may be Long Island, I sometimes get anx- more family-friendly. Rothmans 125’ frontage 2nd level • ious because there is no pressure.” • Basement 2,405 Ground Floor But even people who enjoy the Park Avenue South New York rat race say that in De- Drum says. “More people under- overnight breaks at hotels in New • 45’+ frontage ground Escalator or Elevator cember, something has to give— stand the need to have a work/life Jersey to shop or just do nothing. • and oftentimes it’s sleep. balance.” She also makes “play dates” with For further information, please contact: Exclusive Leasing Agents: Ken Findley 212.400.9482 To find the energy to get through Amy Riordan, marketing direc- friends in Washington, D.C. John Gols 212.400.9477 the holiday season,Raphi Salem says tor for apparel company Doncaster, “We get together, and there is no Although all information regarding property for sale, rental, or financing is from sources deemed reliable, such information has not been verified and no express representation is made nor is he munches on chocolate gelt coins. says her firm encourages people to business talk,” she says. “We can any to be implied as to the accuracy thereof, and is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. “I am the menorah and dreidel wrap up their work so everyone is out laugh and be kids again.” king of the Internet,”says Mr.Salem, the door at 6 p.m. “You just really Even masterful time jugglers— who sells thousands of the Hanuk- have to push through what you have particularly people whose liveli- kah treats and other seasonal items to push through,” says Ms. Riordan, hoods are entwined with the holi- ONE LIBERTY PLAZA through his site, Judaicastore.com. who’s recently been getting up an days—give up some activities. Not only does Mr. Salem have BETWEEN CHURCH STREET AND BROADWAY his Hanukkah order fulfillment to Late into the night take care of, he also has to keep his Something debra stroud and her husband, Web consulting business running DeJuan Stroud, own a business that smoothly in December. So instead has to give, does floral decorations for parties of working his standard nine-hour and corporate events. Between the SUBLEASE FROM day, he labors until about 11 o’clock and oftentimes planning and setup,she often doesn’t INSTITUTIONAL most nights.He tries to get home in it’s sleep finish until 8 p.m. After that, all the SUBLESSOR time to put his children to bed, and paperwork begins, keeping her at then sits down at the computer to work for another couple of hours. continue handling orders. Ironically, she barely has any time to deck out her own loft. “We Doing more in less time do so much decorating for corporate others try to cram as much as hour earlier to get her 5-month-old Christmas parties, our house is not possible into normal working hours. daughter ready for day care. done until a few days before Christ- To keep things in balance for her- Scheduling downtime is critical mas,” she says.“The decorations are self and her clients,Carly Drum tries to avoiding burnout, says the Rev. way simple.” to do lunch meetings, rather than Suzan Johnson Cook, the pastor at Homemade cookies also have business dinners. The managing di- the Christian Fellowship Church in been sacrificed, but the Strouds rector at financial services recruit- Harlem. She knows this from her cling to some holiday traditions, ment firm Drum Associates is also own experience and from that of the such as “Christmas bacon”—bacon happy to report that many clients are people who seek her help to deal wrapped around brown sugar and starting their holiday parties as early with stress and depression during fried on Christmas morning until as 3 p.m. instead of in the evening. this time of year. it’s crackly and crisp. “A lot of that [shift to afternoon Sometimes the demands are a bit parties] happened after 9/11,” Ms. much for Ms. Cook, who takes COMMENTS? [email protected]

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An orchestra strike was narrowly averted right be- PERSONNEL FILE new production head fore the first curtain last year, and focuses on Christmas; glitches in a $4 million LED screen COMPANY MSG Entertainment plagued the run and prompted TITLE Executive vice president, more projects on way MSGE to sue the vendor. Radio productions; GM of the Radio City City Music Hall has since installed Christmas Spectacular a high-definition Panasonic screen BY SAMANTHA MARSHALL that fills the backdrop of the stage AGE 40 with lifelike sunrises created by RÉSUMÉ Founder, Madstone atching leggy Dirk Decloedt,who designs Las Ve- Productions; executive vice dancers strut gas stage sets for Céline Dion. president, creative development, while a chorus Clear Channel Entertainment belts out “Hark! Keeping cool The Herald An- as with any live event, the show POWER LUNCH Kang Suh in gelsW Sing” under a shining Star of will have hiccups. But “this guy Koreatown Bethlehem is all in a long day’s work knows how to keep his cool and INDISPENSABLE GADGETS Two for Jonathan Hochwald. solve a problem quickly,” says Aldo BlackBerries and a cell phone The executive vice president of Scrofani, chief operating officer of productions for MSG Entertain- Columbia Artists Theatricals, who buck ennis ment joined the fold just weeks be- with Mr. Hochwald recently co- He will be in charge of creating and Mr. Hochwald, a native New Christmas show, which packs fore the company kicked off the produced the musical Love, Janis. developing new shows for Madison Yorker, caught the theater bug as a 1.1 million people into the 6,000- eight-week, 204-show run of its The Christmas show,which takes Square Garden and the famed Bea- child, when his mother took him to seat venue annually. A tech buff flagship Radio City Christmas Spec- most of the year to assemble,won’t be con Theater, which Cablevision re- see Broadway shows and the Rock- who’s also in charge of Spectaculars tacular, with brand-new choreogra- Mr. Hochwald’s only concern. cently added to its portfolio of ma- ettes. He fell into the business by mounted outside the city,he’s trying phy and visual effects. MSGE, the live-entertainment unit jor venues. promoting rock concerts during his to figure out how to create even “I guess you could say I’m diving of Cablevision, produces more than “We have a game plan of creating undergraduate years at Brown. more visual drama in a way that in at the deep end,” says the veteran 200 events annually—including the more spectacles for years to come,” doesn’t detract from the dancers or theater executive,whose primary role Grammy and Tony awards shows says Mr. Hochwald, who got to Singular sensation disgruntle fans of the New York in- as general manager will be expanding and the Westminster Dog Show. know his new colleagues last month one of his earliest memories is stitution. the Rockette franchise. “Right now Mr. Hochwald, who most re- when he orchestrated Cirque du of walking into the sumptuous gilt “I’m trying to hold on to tradition I’m in absorption mode.” cently ran his own production com- Soleil’s first show at Madison lobby of Radio City Music Hall for and imagine what we can do to keep The athletically built executive’s pany and has also headed up family Square Garden through his own the first time. “There’s just nothing it exciting,” Mr. Hochwald says.“It’s appointment comes after a tumul- programming for Clear Channel firm, Madstone Productions. Delir- else like it in the world,” he says. a tremendous balancing act.” tuous couple of years for the Spec- Entertainment, joined MSGE to ium, billed as a Cirque du Soleil Through the end of the year, Mr. tacular, which will celebrate its 75th help build an even bigger empire. concert, ran for six days. Hochwald will focus solely on the COMMENTS? [email protected]

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December 4, 2006 | Crain’s New York Business | 41 Have you or your BUSINESS LIVES company been overcharged by lawyers? EXECUTIVE MOVES ACCOUNTING & CONSULTING Deloitte & Touche USA: Bryant Huber,33, HOT JOBS Has your company been sued (or will it be) was promoted to partner from senior manager. by lawyers for unpaid legal fees? John Jacob, 34, was promoted to partner WANTED: PRESIDENT AND CEO Our law firm offers a unique service: from senior manager. Christopher Monteilh, 38, was promoted ORGANIZATION Better Business Bureau of New York getting excessive legal fees reduced and/or to partner from senior manager. * Patrick O’Donnell, 38, was promoted to JOB DESCRIPTION Overseeing the privately funded nonprofit and its refunded, strictly on a contingent basis. partner from senior manager. Education and Research Foundation We only get paid a percentage of the savings Kazuko Ohashi, 35, was promoted to MOST IMPORTANT TASKS Ensuring that the group is financially healthy partner from senior manager. and maintains a positive reputation in legal fees that we achieve for you. Heather Orsi, 37, was promoted to Visit our website to learn more. partner from senior manager. CREDENTIALS NEEDED Track record in organization-building; experience Guy Sindle, 36, was promoted to partner in marketing and fund raising from senior manager. SALARY About $150,000 annually, based on experience What have you got to lose? ADVERTISING & COMMUNICATIONS RECRUITER Gail Freeman, president of Freeman Philanthropic Services Travel Ad Network: Neil Strow, 43, joined as senior director, East Coast sales, a DOWNSIDE Running an organization that is dependent on a national Think about it. new position. He was formerly entity advertising and research sales manager, East Coast, at TiVo. UPSIDE Helping to educate consumers on area businesses and charities After nine years as president and chief executive of the local BBB, Ronna ARCHITECTURE & DESIGN Brown was recently promoted to run the Council of Better Business Thornton Tomasetti: Sorin Moisi, 62, was promoted to senior vice president from Bureaus’ Foundation. The metro New York BBB gets more than 1.3 mil- Carney McKay vice president. lion inquiries a year from consumers and businesses, and the Education & and Research Foundation raised more than $386,000 in 2004. 1475 Franklin Avenue FINANCE & INSURANCE —AMANDA FUNG Garden City, New York 11530 GSC Group: Robert P.Seery, 52, joined as senior vice president, structured finance 516.742.6600 group. He was formerly chief operating officer at International Asset Transactions. Jeffrey Legault, 33, joined as special Antonucci, 47, joined as partner. He had www.carneyandmckay.com HSBC Private Bank: Patrick Campion,45, counsel. He had been an associate at been a partner at Weil Gotshal & joined as a managing director and head Shearman & Sterling. Manges. of the U.S. private bank. He was Ivan Loncar, 35, was promoted to special Paul H. Shur, 54, joined as partner. He formerly a managing director and head counsel from associate. had been a partner at Reed Smith. of Deutsche Bank U.S. Private Bank. Michael C. Macchiarola, 34, joined as * Computed after deduction of litigation out of pocket expenses, including special counsel. He had been vice MEDIA & ENTERTAINMENT costs and disbursements, which, by law, the client remains responsible HIGH TECH & NEW MEDIA president, equity finance group, at Hearst Magazines International: Jay for in the event there is no recovery or reduction of fees. IPC Command Systems: Doug Roberts, 48, Goldman Sachs & Co. McGill, 52, was named senior vice joined as vice president and general Richard Nugent, 36, was promoted to president, effective Jan. 1. He was manager. He was formerly chief special counsel from associate. formerly senior vice president and technology officer and vice president, Laura Swihart, 34, was promoted to publisher of SmartMoney magazine. research and development, at special counsel from associate. Bill Shaw, 37, was promoted to PlantCML. Josh Weiss, 35, was promoted to special publisher of SmartMoney magazine from PixFusion: Urmalena Gomes, 35, was counsel from associate. general manager of SmartMoney.com, named marketing director. She had been Cravath Swaine & Moore: Craig F.Arcella, effective Jan. 1. marketing manager at All Kinds of 33, was promoted to partner from Madison Square Garden: Michael Guth, Minds. associate, effective Jan. 1. 40, joined as executive vice president, Erik Slavin, 40, was named director of Teena-Ann V.Sankoorikal, 32, was marketing solutions, for MSG Media. content development. He had been the promoted to partner from associate, He was formerly senior vice president at directing fellow at the American Film effective Jan. 1. Time Warner Global Marketing. Institute. Andrew R.Thompson, 33, was promoted NBC Sports: Jon Miller, 50, was Laura Perrotta, 38, was named director to partner from associate, effective promoted to executive vice president of content production. She had been Jan. 1. from senior vice president, producer and studio production Damien R. Zoubek, 33, was promoted to programming. manager at So! Animation. partner from associate, effective Jan. 1. Public Theater: Nicki Genovese, 42, joined Crowell & Moring: Kimberly G. Baldwin, as general manager. She had been general HOSPITALITY & TOURISM 34, joined as partner. She had been a manager at South Coast Repertory. Ovation Travel Group: Marcia Amoye, 46, partner at King Pagano Harrison. Sundance Channel: Stuart Benson,45, was promoted to chief operating officer Bruce D. DeRenzi, 48, joined as partner. was promoted to senior vice president from senior vice president of client He had been a partner at Morgan & and chief financial officer from vice solutions. Finnegan. president, finance. Thomas Gehrke, 41, joined as chief Dickerson M. Downing, 54, joined as information officer. He was formerly partner. He had been a partner at REAL ESTATE chief information officer at the Daley- Morgan & Finnegan. Grubb & Ellis Co.: Henry Goldfarb, 64, Hodkin Group. James E. Kellett, 58, joined as partner. He was promoted to executive managing had been a partner at King Pagano director, New York retail group, from LAW Harrison. senior managing director. Cadwalader Wickersham & Taft: Gerard Jeffrey W. Pagano, 56, joined as partner. Stephen Santoro, 53, joined as executive Hefner, 51, was promoted to special He had been a name partner at King managing director, business integration counsel from associate. Pagano Harrison. solutions. He was formerly director of Richard Jensen, 34, was promoted to Andrew M. Riddles, 50, joined as partner. marketing at Evenson Best. special counsel from associate. He had been a partner at Morgan & Robert Kim, 40, was promoted to special Finnegan. SERVICES counsel from associate. Ira M. Saxe, 49, joined as partner. He Bovis Lend Lease Holdings Inc.: Brian Stacey Lara, 35, was promoted to special had been a partner at King Pagano Casey, 55, joined as senior vice president counsel from associate. Harrison. and head of insurance risk management. DLA Piper US: Joseph C. Gioconda,34, He had been director, risk management joined as partner. He had been a partner and loss prevention, at Corning Inc. EXECUTIVE PROMOTIONS at Kirkland & Ellis. Stuyvesant Fuel Service Corp.: Louis Crain’s lists the promotion and hiring of New York McDermott Will & Emery: William Weld, Romano, 55, joined as executive vice area senior executives on a space-available basis, 61, joined as partner. He was formerly a president, sales. He was formerly senior with priority given to positions in New York City. principal at Leeds Weld & Co. vice president at Castle. The fastest way to get an announcement into Paul Hastings Janofksy & Walker: Richard Union Square Partnership: Jennifer E. Crain’s is to submit the information online. S. Denhup, 34, was promoted to partner Falk, 34, joined as executive director. She Go to www.newyorkbusiness.com and click on from associate, effective Feb. 1. had been first deputy press secretary for “Executive Moves”; then click on the link to fill Jodi A. Kleinick, 38, was promoted to Mayor Michael Bloomberg and out the submission form. The Executive Moves partner from counsel, effective Feb. 1. spokeswoman for Deputy Mayor of column is also available online. Domenick Pugliese, 45, was promoted to Economic Development and Rebuilding Crain’s cannot confirm receipt of listings or say partner from of counsel, effective Feb. 1. Daniel Doctoroff. when they will appear. Sills Cummis Epstein & Gross: Peter A. —adrianne pasquarelli BUSINESS LIVES TABLE TALK by Bob Lape scallops Benedict and Bronx-style veal filet mignon, for instance, were and are fine notions. Fresh fish fig- ure in other compositions. Black sea bass with soba noodles and baby bok choy in lemon grass-ginger broth is an excellent light dish, and pan- seared halibut T-bone is a hit paired with lobster dumplings and lobster bordelaise. Ginger-crusted wild salmon is served with sweet pea ravi- oli, snow peas and leeks in tomato- mint butter. Desserts ($8 to $15) demanding attention include a butterscotch panna cotta festooned with meringue sticks, a wicked choco- late-truffle torte with a burned caramel edge and David Burke Cheesecake Pops: three flavors of the pastry sprouting from a “tree.” Service is cordial and generally efficient,but a venison order was in- explicably transformed into veal saltimbocca—so tender and tasty we didn’t even mention it. The deep wine list includes many important entries from the 1970s and 1980s. The cellar can accom-

buck ennis modate a dozen diners and will WHERE CITY MEETS COUNTRY: David Burke’s family was involved in renovating the former shortly be expanded to make room La Fromagerie, which now features a cozy fireplace and works from his art collection. for 20. In the meantime, it’s often filled with New Jersey nabobs shar- ing prime rib and good bottles. Oh, and David Burke Fromagerie does takeout for neighbors named New Jersey boy Springsteen and Bon Jovi. returns to roots COMMENTS? [email protected] modern Russian work. A fireplace David Burke revamps and cozy bar lend warmth. David’s high-end spot where brother, Michael Burke, did some of M&K BUSINESS HEROES the refurbishing, and David Burke KNOWLEDGE | INTEGRITY | RESPONSIVENESS he was an underling; Sr. oversees the grounds. “He thinks it’s his restaurant,since takeout for the Boss it’s his name up there,” says the chef. Chef de cuisine Kevin Haeger avid burke’s auto- puts his signature on a menu rich with graph may well be the whimsy and forthright tastes that David Burke Inc. To characterize the Burke style. think that we worried Dinners begin with a cheddar DAVID BURKE when he parted com- cheese-poppy seed popover and an FROMAGERIE OUR M&K HERO Dpany with Alan Stillman’s Smith & amuse-bouche, like a dumpling 26 Ridge Road PUSHED THROUGH Wollensky Group a few years back. filled with ham hock and short rib in Rumson, N.J. THE BARRIERS TO Burke now runs full-throttle spiced apple cider. (732) 842-8088 HIS CLIENT’S through all aspects of the food and Exceptional starters ($8 to $21) ★★★ BUSINESS GROWTH. food service industry. are a Caesar salad wrapped in pro- The Brooklyn-born, New Jer- sciutto di Parma;Perona Farms pas- CUISINE Modern American sey-raised hyperchef has a name- trami-smoked salmon;the celebrat- WINES 325 choices, 21 by the sake restaurant (Davidburke & Do- ed Burke invention, Hot and Angry glass natella); partnerships with Steve lobster cocktail, with its Cajun Hanson (David Burke’s Prime- clout; and something I’d never seen DRESS No code house) and Bloomingdale’s (David before: pretzel-crusted crab cake, NOISE LEVEL Moderate Burke at Bloomingdale’s);consulta- rich crabmeat sandwiched between tions (Hawaiian Tropic Zone and rafts of pretzel sticks and surround- PRICE RANGE $24-$39; restaurant.mc); commercial prod- ed by artfully slivered green beans on four-course tasting menu, $65 ucts like David Burke Flavor Sprays a plate rimmed with alternating WINE MARKUP 125%-220% In the real world, we’re CPAs. and cheesecake lollipops; and dots of mango vinaigrette and pop- To our clients, we’re Superheroes. even—with Mr. Hanson—a busy py-seed honey. CREDIT CARDS All major bull named Prime. Other openers combining tex- RESERVATIONS Recommended It’s no bull, however, that what tures and flavors include crispy co- HOURS Lunch, Tues.-Fri., pleases him most is driving up to his conut shrimp with grapefruit and 11:30 a.m.-2:30 p.m.; Dinner, latest acquisition,David Burke Fro- fennel salad, and yellowfin tuna Tues.-Thurs., 5-10 p.m., Fri.-Sat., MARCUM & KLIEGMAN LLP magerie in Rumson, N.J., and see- sashimi on Himalayan rock salt Certified Public Accountants & Consultants ing his name on the former La Fro- with lotus-root chips. Mushroom 5-11 p.m., Sun., 4-9 p.m.; magerie, where his career began. chips and truffle mousse with wild Brunch, Sun., 11 a.m.- 3 p.m. ★★★★ 800.921.0777 | www.mkllp.com The upscale but homey restau- mushrooms spark handmade ca- = Outstanding NEW YORK rant, first opened in 1972, gleams vatelli with braised beef short ribs. ★★★= Excellent MELVILLE STAY TUNED FOR with new paint and carpet,plus some As with appetizers, more than a ★★= Very good GREENWICH THE NEXT INSTALLMENT OF of Mr. Burke’s art collection—a Pi- few entrées are lifted from the ★= Good GRAND CAYMAN M&K BUSINESS HEROES casso here,a Chagall there,as well as Davidburke & Donatella menu.Sea

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