The Hard Math Behind Splitting up City's Largest Private Employer

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GOTHAM GIGS ROLLING THE DICE on casino CRAIN’S® P. 24 NEW YORK BUSINESS school

VOL. XXXI, NO. 9 WWW.CRAINSNEWYORK.COM MARCH 2-8, 2015 PRICE: $3.00 Caught in the middle

Stagnant incomes leave middle-class shoppers aiming high, buying low and dissing retailers in between

BY ADRIANNE PASQUARELLI Selling to the middle-class shopper has rarely been so tough. Last week, Macy’s lowered its 2015 earnings forecast, amid sales-growth slowdowns resulting from shopper malaise. The department store giant’s troubles follow the January shuttering of Kate Spade Saturday, C. Wonder and Gap Inc.’s Piperlime—three businesses aimed at fashion-conscious See MUDDLE on Page 23 tom cocotos

REPORT The hard math behind splitting up REAL ESTATE THE LIST city’s largest private employer Top Manhattan office bank’s stock has returned more than the U.S., with $2.6 trillion in assets, leases, led by What if one giant 80% during the past decade, while federal regulators are requiring it to 11 Madison Ave. JPMorgan Chase its peer group has lost 14%. hold billions more in reserve capital Nevertheless, Mr. Dimon finds than other giant rivals, such as Bank PAGE 14 became four banks? himself battling to keep his creation of America and Citigroup. But intact. He even took to a conference that’s not the end. The feds late last stage last week to implore investors year unfurled a plan that would fur- BY AARON ELSTEIN buck ennis to stick with his vision of supersize ther penalize JPMorgan for its size banking. “Our large corporate and by forcing it to hold still more bil-

09 In his 10 years as CEO of JPMor- government clients need a large lions in capital.

5 gan Chase & Co., Jamie Dimon has bank,” he insisted.“It is not possible That may make for a safer insti- built a megabank that spans the to do what they need and be a small, tution, but it’s not popular with in- country, dominates Wall Street and regional bank.” vestors because every dollar the which last year generated $22 bil- That may be true, but JPMor- bank holds in reserve is one less lion in profit—more than Warren gan’s size works against it more than available for making profitable loans Buffett’s Berkshire Hathaway. The ever. Because it’s the largest bank in See JPMORGAN on Page 23 NEWSPAPER 71486 01068 0 20150302-NEWS--0002-NAT-CCI-CN_-- 2/27/2015 6:54 PM Page 1

EXECUTIVE EDITOR’S NOTE

Noise makers FYICRAINSNEWYORK.COM A dozen small manufacturers were mad as hell. So last week they turned to Crain’s. We regularly meet with business owners, civic Governor gives leaders and politicians who want us mayor the to hear them out on their most pressing issues. In this case, it’s the cold shoulder

Jeremy Smerd pre-eminent one, affordability.The ayor Bill de Blasio maker economy is making a once called Albany comeback but is on a collision a “faraway place” course with New York’s scarcest commodity: space. M and a “strange and mysterious A garmento faces a 100% rent increase. A tugboat- land,” but it wields enormous light maker wants to expand in Queens but would power over New York City’s have a much easier time of it in Florida.The firms policies and purse strings. So

that came to us last week are doing well but are last week, with a policy wish ap images hemmed in.They work in industrial business zones, list in one hand and a hat in the other, he made the annual trek north that city mayors always do which are being encroached upon—legally and during budget season in the state capital. ¶ It might prove to be a largely empty trip. Mr. de Blasio’s illegally, they said—by schools, hotels and apartment request for permanent authority over the city’s school system was shot down immediately by Gov. dwellers.The de Blasio administration’s focus on Andrew Cuomo, who called mayoral control “basically an experiment” and that a three-year affordable housing has sent the message that every extension would suffice.The mayor’s call for a $15 minimum wage in the city is also going parcel could be up for grabs. So the question, as nowhere:The governor has his mind set on an $11.50 hourly minimum, while the Republicans who former city Economic Development Corp. President control the state Senate dislike not only wage mandates, but also the mayor himself.The mayor Seth Pinsky explores on Page 11, is how to ensure reiterated his desire for tenant-friendly reforms of rent regulation, which is up for renewal by the that building cheaper housing doesn’t destroy the legislature in June, but took no position on another expiring program, 421a, which grants property- jobs for the very people this housing is supposed to tax abatements for new apartments. He also asked for $2.6 billion more in education funding—an serve. “We need a spectrum of employment for the essentially rhetorical gesture—and $300 million for the city’s housing projects. —erik engquist spectrum of people in this city,” said Brent Baker, CEO of Tri-State Biodiesel, which moved to the GO WEST. The Port Authority of New down as chairman of McGraw Hill York and New Jersey may lift a 30-year Financial Inc. after 27 years. … TURN- HOORAY! Bronx from Brooklyn, but might have to grow in ban on flights at LaGuardia Airport ING THE PAGE. Barnes & Noble plans THE BROOKLYN Connecticut. A start, we argue in this week’s traveling farther than 1,500 miles. to keep its Nook e-reader unit and will COMMUNITY That would likely spur airlines to spin off its college-bookstore business FOUNDATION is editorial on Page 8, is for the administration to say: offering free These areas are for industrial businesses first. Period. launch lucrative flights to California into a separate public company. The office space in and other West Coast destinations, bookseller estimates its college-book Crown Heights Still, even these small businesses acknowledge that’s but may come at the expense of short- business, which includes 714 stores, is and a $5,000 stipend to as not enough. And unlike most of the petitioners who er flights to smaller cities.… MORGAN valued at $775 million. … TODDLER many as three come through our doors, they do not know exactly STANLEY PAYS $2.6 BILLION. The in- APP. Nickelodeon is launching an app nonprofit startups. what a solution should look like.That’s one reason vestment bank has reached a deal with for Apple devices called Noggin

the Justice Department to settle geared toward preschoolers. For $6 a istockphoto why on March 17 we’re hosting a half-day claims related to the mishandling of month,subscribers will receive ad-free conference on the affordability crisis. Businesses mortgage-bond sales during the fi- TV shows and games.The network is OY VEY! nancial crisis.… ISIS RECRUITS.Three with a stake in the outcome should see this as an also developing a SpongeBob musical J.CREW RELEASED a sneaker line Brooklyn men were for a possible Broad- initially called Fort Green, misspelling the opportunity—perhaps their best one—to be heard. arrested for plotting to way run that will in- name of the Brooklyn neighborhood that aid the Islamic State. ‘New York clude songs written by inspired it. At least two of them continues to Aerosmith and David THIS WEEK IN CRAIN’S threatened to assassi- Bowie.… JILL ABRAM- nate the president and be the city of SON BOOK. The for- SMALL BUSINESS ------3 attack targets in the the bulldog’ mer New York Times U.S.,including Coney executive editor has IN THE BOROUGHS------3 —Gina DiNardo, Island, prosecutors al- landed a book deal American Kennel Club IN THE MARKETS------4 TERRORISM leged. … vice president, on the with Simon & Schus- FINANCING.New York THE INSIDER ------5 French bulldog’s status ter for a rumored $1 state’s top financial as the city’s most million. She will world’s oldest professional investors, OPINION------8 watchdog, Benjamin popular pooch weigh in on “the died at the age of 109. Mr. Kahn, the GREG DAVID ------9 Lawsky, wants to evolving state of me- most-senior student of Benjamin make senior banking executives per- dia.”… O’REILLY FIBS? Fox News host Graham, the father of “value invest- REPORT: REAL ESTATE------12 sonally accountable for detecting Bill O’Reilly has been accused of ex- ing,” was chairman emeritus of Kahn THE LIST ------14 rogue activity, including terrorism fi- aggerating stories about his war- Brothers Group, a Manhattan-based nancing, by requiring them to sign reporting experience and fabricating investment adviser that manages $1 CLASSIFIEDS ------SOURCE LUNCH 20 documents asserting that banks’ com- claims that he witnessed nuns being billion.... Robert Benmosche,the for- Investor Leslie Bocskor is BUSINESS PEOPLE------24 puter systems can identify money shot in El Salvador.Fox News and Mr. mer CEO of AIG, died after under- a guru of sorts for those laundering. … MCGRAW RETIRES. O’Reilly dispute these claims. … IN going treatment for lung cancer. He SNAPS------looking to get into the legal- 26 Harold “Terry” McGraw III will step MEMORIAM. Irving Kahn, one of the was 70. —emily laermer marijuana business. P. 25 FOR THE RECORD------27 CORRECTIONS (SEE PAGE 23) STORIES TO WATCH THIS WEEK vol. xxxi, no. 9, march 2, 2015—Crain’s New York Business (issn 8756-789x) is published weekly, except for double issues the weeks of June 29, July 13, July 27, Aug. 10, Aug. 24 and Dec. 21, by Crain Communications Inc., 685 Third Ave., New York, NY March 2: NYC March 2: March 6: Foot March 8: Tickets 10017. Periodicals postage paid at New York, N.Y., and additional mailing offices. Post- master: Send address changes to: Crain’s New York Business, Circulation Department, 1155 public-school Baccarat super- Locker reports for B’way’s hip-hop Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (877) 824-9379.Fax (313) 446-6777.$3.00 a copy,$99.95 one students can begin luxury hotel opens, fourth-quarter Founding Father year, $179.95 two years. (GST No. 13676-0444-RT) bringing cell- with rooms from earnings. musical, Hamilton, ©Entire contents copyright 2015 by Crain Communications Inc. All rights reserved. phones to school. $729 per night. go on sale.

2 | Crain’s New York Business | March 2, 2015 20150302-NEWS--0003-NAT-CCI-CN_-- 2/27/2015 6:27 PM Page 1

IN THE BOROUGHS QUEENS

DAVID GRANT AND JEANNETTE BOCCINI found the Towers right buyer for their firm last year. coming, but will jobs? Astoria locals hoping developers deliver on employment deals

BY JOE ANUTA

Walking west on 30th Avenue from Astoria’s business district, the bustling restaurants, shops and coffee spots slowly get fewer and farther between until a cluster of industrial buildings covered with Technicolor SMALL BUSINESS graffiti comes into view at the end of the road, across from the sprawling Astoria Houses complex. Many of the 3,000-odd residents have spent decades far removed from the main- WaitingWaiting toto sellsell bringsbrings rewardsrewards stream—until now. In recent months, as plans for two multitower residential com- Getting through the recession proves lucrative. Very lucrative plexes along the East River have advanced, a growing sense of anticipation has infused the atmosphere. In

dave neff dave the coming years, the Halletts Point and Astoria Cove projects will re- Lehman Brothers collapsed, the business part- finally finding it’s the right moment to sell after place hulking brick monoliths— BY EILENE ZIMMERMAN ners put their plans on hold. waiting out the recession. Mergers and acquisi- housing businesses such as Super “There were so few buyers, and they were tions “effectively shut down” between 2008 and Stud Building Products—with avid Grant and Jeannette Bocci- looking for fire sales,” said Ms. Boccini. LVM 2013, but began to pick up after 2010, said more than 4,000 apartments, stores, ni started thinking about selling began talking with potential suitors in 2012,and Matthew Katzeff, director of valuation services a school and something else: jobs. their public-relations firm, LVM even though the recession had ended, LVM for the Manhattan office of GBQ Consulting, “The main issue [for us] is basi- Group, in 2008. The three- didn’t find a buyer until more than a year later. which provides business, real estate and securi- cally employment opportunities,” employee Manhattan company, The sale to Didit, an integrated marketing firm ties valuations in mergers and acquisitions. said Claudia Coger, president of the Dfounded by Mr. Grant in 1974, was profitable in Mineola, L.I., with annual revenue of more Last year, though, with the economy getting Astoria Houses Residents Associa- but wanted to expand its services, especially than $20 million, closed in February 2014. stronger, more small businesses changed hands tion, which has given its full- those in digital marketing. However, when Like LVM Group, many small businesses are See WAITING on Page 22 See ASTORIA on Page 18 Mayor’s chummy City Council STATS AND THE CITY by Nicholas Wells SIGN OF THE TIMES: Digital subscription growth offset advertising declines at relations suddenly aren’t The New York Times Co. Last year, the company earned $169 million from 910,000 digital subscribers, boosting revenue by $10 million over 2013.

AVERAGE daily circulation for the weekday print edition of even been sniping on Facebook. shortsighted NIMBYism and local 648.9KThe New York Times in 2014, down from 1.1M in 2004. The Signs of insurrection “We may be heading for a politics, where new construction is Sunday edition dropped 29%, to 1.2M as council clashes tougher era,”said a council member. generally unpopular and viewed as a The council has long strived for precursor to displacement,”said one NUMBER of people interviewed for the Times’ 97-page innovation with de Blasio over— relevance in a city where mayoral real estate insider. “Increasing con- 354report last year to help the paper embrace the Web; participants what else?—power dominance is taken for granted by flict between the two sides of City ranged from the late David Carr to Fabio the public and codified in the city Hall is a likely outcome.” charter. Often that manifests in Year one of the de Blasio era was PRICE paid in 1993 for the Daily News by Mort BY ANDREW J. HAWKINS land-use disputes, where the coun- a cakewalk, with the mayor and the $36.3MZuckerman, who is exploring a sale of the cil can make or break a project. council collaborating to mandate tabloid, which reportedly loses $20 million a year After a year of sunny collaboration paid sick leave, create municipal ID between natural liberal allies,clouds cards and lower the speed limit.Year NUMBER of the nation’s top 10 blogs, based on loom on the horizon for Mayor Bill ‘We may be two figures to be dicey, with Mr. de 7unique monthly visitors, headquartered in NYC; de Blasio and the City Council. Blasio’s ambitious housing plan four of the 10 largest newspapers are based here What began as an ideologically heading for emerging as a sticking point. aligned pairing is giving way to a Both sides want affordable hous- NUMBER of unique U.S. visitors to Gawker Media power struggle more typical of New a tougher era’ ing but disagree on where to put it, 58.7Msites in January, up 30% for the York City politics. Some in the how tall it should be, how to pay for year. Still, it’s hired a council perceive the mayor to be en- it and who should live in it. The firm to help with branding croaching on their land-use author- projects approved in 2014—Astoria ity and using strong-arm tactics. Cove (see story above) and Flushing Several bills on which the council “The administration is trying to Commons in Queens and the Sources: U.S. Securities and Exchange Commission, New York Times innovation report, AdAge, Poynter Institute, BurrellesLuce, eBizMBA.com, Capital New York and mayor disagree are advancing move forward with their bold hous- Domino Sugar Factory in Brooklyn istock images through the chamber. One council- ing and development agenda, and (see Page 6)—were carried over ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY man and a top de Blasio aide have much of the council is mired in See COUNCIL on Page 22

March 2, 2015 | Crain’s New York Business | 3 20150302-NEWS--0004-NAT-CCI-CN_-- 2/27/2015 6:28 PM Page 1 IN THE MARKETS by Aaron Elstein This guy Capital Campaigns will make Fundraising and Development Programs $25M, Strategic Plans thanks to franks

www.koszynandco.com deal the real for by hugh hartshorne photo (212) 905-6032 ou may have heard that the Nasdaq Composite Index is near 5,000 for the first time since the days when dot-coms stalked the Earth. Of course, a good chunk Y Apple of Nasdaq’s rise is thanks to , whose insane $757 billion market valuation accounts for 10% of the index all by itself. But one of Nasdaq’s hottest stocks has nothing to do with Silicon Valley or cutting-edge technology. It’s Nathan’s Famous Inc., the company that’s been taking care of Coney Island visitors’ hot-dog and crinkle-cut french- fry needs for 99 years.

While hipsters were smacking higher beef prices. their lips over Shake Shack and its re- Total revenue hit $80 million in cent initial public offering, shares in the fiscal year that ended last this durable franchise more than March 31,and produced a net prof- doubled during the past 24 months, it of $8 million. Nor are there signs rising at more than twice the rate of of a slowdown:Total sales rose 17% the Nasdaq. The stock (ticker sym- during the nine-month period Cohen Brothers and JLL are pleased to announce bol: NATH) now fetches greater ended last December. than $82 a share and spiked another Nathan’s also has a hard-to- their partnership in the leasing of 135 East 57th Street 8% last Friday alone, after the com- replicate marketing gimmick: all pany said it would borrow $125 mil- the free publicity it gets from spon- lion and pay out most of the proceeds soring the rather revolting July to investors as a special dividend. Fourth hot-dog-eating contest The chief beneficiary of that’s broadcast on ESPN. Nathan’s generosity will be Howard It’s worth noting that all this Lorber (pictured), a developer best success took years to accomplish. known as chairman of Douglas Elli- Mr. Lorber joined Nathan’s board ACTUAL VIEW man Real Estate,who is also executive in 1987, but it wasn’t until eight chairman of Nathan’s.Owing to his years ago,when he named an enter- 22% stake, he’s in line for about $25 tainment lawyer as chief executive, million of the special dividend. that the company finally began Nathan’s has done what Shake growing beyond its New York Shack now aims to do: transformed roots. For all its success, Nathan’s is a New York favorite into a premium still pretty small potatoes, with a national and international brand. market value of $370 million. The number of franchised Shake Shack—with only a fifth as Nathan’s restaurants has grown by many restaurants—has a market a third since 2010,to more than 300 capitalization of $1.5 billion. outlets across 27 states and 10 That could mean that Shake countries, including eight new lo- Shack shares are overpriced, or cations in Moscow last year. Its hot maybe Nathan’s stock has even dogs are sold in 33,000 supermar- more room to run. Or perhaps the kets, five times more than a decade key to long-term success for Shake INTRODUCING THE PLAZA DISTRICT’S ago, and it’s had little trouble per- Shack is to sponsor a burger-eating MOST PROGRESSIVE PRE-BUILTS suading customers to swallow contest? Ⅲ AVAILABILITIES FROM 13K RSF DECLINE in Weight Watchers FINISHES BY JIM PHILLIPS International’s stock PLANNED ENHANCEMENTS COMMENCING Q1 2015 -31% price on Friday. The Manhattan-based company, which has seen business from its For leasing information, please Scott Panzer Shannon Rzeznikiewicz meetings slow as dieters embrace fitness apps, Licensed Real Estate Broker Licensed Real Estate Broker last week reported that quarterly revenue contact JLL’s leasing team at Howard Hersch Justin Haber

ap images dropped 10% and membership fell 15%. 212.812.5700. Licensed Real Estate Salesperson Licensed Real Estate Associate Broker 20150302-NEWS--0005-NAT-CCI-CN_-- 2/27/2015 6:55 PM Page 1 THE representative is concerned, envi- MAYOR BILL DE ronmental fears for the education INSIDER BLASIO’S pre-K facility are beside the point because by Andrew J. Hawkins and Erik Engquist program pulled the local school district has four many students from middle schools already. “We don’t private schools, a study found. need a school there,” said Council- woman Margaret Chin. Universal pre-K’s startling discovery The councilwoman noted that the Hughes Corp. included the ayor Bill de Blasio has portrayed his signature school in its proposal because local prekindergarten program as an antidote for parents wanted one. That may be the one thing on which she and the Minequality and a major benefit to lower-income developer agree. parents. Last week, an academic study cast it in a new light by The fundamental objection of

stating that about half of the new pre-K centers’ students ap images Ms.Brewer and Ms.Chin is that the tower would destroy the character of would have otherwise enrolled in private programs. city’s overall figure, the spokes- cation,” she said at a meeting with the seaport, although the building’s To gauge the migration, the study, by researchers at the woman added.The program will be the Crain’s editorial board. “That footprint is just outside the historic University of California, Berkeley, surveyed a random 15% expanded further in September. school could be underwater.” district. “It’s very hard to create a Mr.Fuller has been critical of Mr. A weather event of biblical pro- public space with a tower around it,” sample of preschools that did not re- said Bruce Fuller,a Berkeley professor de Blasio’s pre-K program before. portions would be necessary for that said Ms. Brewer, though she ac- ceive new funding last fall, canvass- of education and public policy who Last October, he produced research to happen, as the school is slated for knowledged that Battery Park City ing 103 directors across the city.The led the study.“But under pressure to that he said proved the program fa- the third, fourth and fifth floors of was done well. schools reported losing nearly 10 expand quickly, the mayor’s team vors wealthier neighborhoods.May- the tower. Moreover, the building Said Ms.Chin,“Why not keep it children on average to nearby pre-K nudged families to switch out of oral aides blasted the study as inac- site is not even in the floodplain, ac- as a low-rise neighborhood?” programs that did receive new pub- long-established preschools.” curate and “offensive.” cording to a spokesman for the de- The developer and the de Blasio lic funding. A Department of Education veloper, Texas-based Howard administration view the mostly resi- The researchers estimated that spokeswoman attacked Mr. Fuller’s Hughes Corp.The spokesman not- dential tower as a revenue generator between 10,350 and 15,950 of the sample size and credentials. Brewer predicts ed that Pier 17, where the seaport is that would pay for public benefits— 26,000 new pre-K slots were filled “This study is based on errors biblical flood located, sustained little damage including the school, infrastructure by children who had already attend- and false assumptions that no early- from Superstorm Sandy. work and affordable housing— ed or signed up for preschool. They education expert would make,” she Manhattan Borough President Gale As far as the area’s City Council worth more than $300 million. Ⅲ said a parallel of this “substitution said. “Every 4-year-old benefits Brewer said a key reason she opposes effect” was the New York Archdio- from a high-quality educational ex- a redevelopment proposal for the cese losing students from its perience, which is why we boosted South Street Seaport is that its tow- QUOTE OF THE WEEK: ‘White people don’t Catholic schools to free charter the number of seats across the city.” er at the water’s edge, which would schools sprouting across the city. Nearly two-thirds of free pre-K house a middle school, would be at eat the way we do’ “Mr. de Blasio did invite some seats are in neighborhoods where risk of inundation. —State Sen. Velmanette Montgomery, D-Brooklyn, calling supermarkets more new families into quality pre-K,” the median income is below the “Any storm would flood that lo- important in black areas because whites can shop in “boutiques.” She later apologized

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March 2, 2015 | Crain’s New York Business | 5 20150302-NEWS--0006-NAT-CCI-CN_-- 2/27/2015 7:53 PM Page 1

ARTHUR MONDELLA killed himself last week B’klyn cherry firm stays as authorities raided open after owner’s suicide his business.

puter screen and smoked cigarettes his kids. Probe of alleged just steps from where Mr. Mondel- Mr.Mondella had reportedly co- marijuana operation la, 57, took his life in a private bath- operated until authorities obtained room Feb. 24. search warrants after noticing hid- at Red Hook Ms.Capece wouldn’t elaborate on den shelving leading to a secret door. factory continues any plans, and the factory’s cherry They later discovered almost 80 production facilities appeared closed. pounds of marijuana, $125,000 in “The company will continue to cash and covered vehicles in an ad- BY TRIPP WHETSELL fully cooperate with the district at- jacent back lot, the Daily News re- torney’s investigation and appreci- ported. Less than 48 hours after the owner of ates that office’s assistance, which According to the newspaper, a Dell’s Maraschino Cherries fatally allows us to immediately resume our search the next day uncovered an shot himself during an investigation business operations despite this operation with the potential to grow into suspected drug warehousing, tragedy,” said family attorney about 1,200 marijuana plants in ad- Arthur Mondella’s sister vowed that Michael Farkas in a statement ob- dition to the 400,000 pounds of the third-generation manufacturer tained by Crain’s. cherries Dell’s processed each week would continue operating under the at its 35,000-square-foot plant on family’s leadership. Secret door Dyckman Street.

“It’s a family business,and it’s go- “We look forward to providing Investigators from the Brooklyn buck ennis ing to stay that way,” said Joanne the same high-level service as we district attorney’s office said there Capece, who was visibly shaken last have throughout our entire 67-year were no suspects at this time, but an common link between the two ly doubled its capacity. week during an unexpected visit by history,” the statement continued. unnamed source told the News that operations.” He said that the company had Crain’s to the Red Hook, Brooklyn, During what started as an inves- he was certain Mr. Mondella wasn’t Meanwhile, Mr. Mondella— $20 million in annual revenue. As headquarters where the company tigation of possible environmental acting alone. whose namesake grandfather start- only one of a handful of remaining has made its bright-red bottled violations on the morning of Feb. “In theory, it could have been ed the company in 1948 and who bottled-cherry makers in the Unit- cherries for decades. 24, Mr. Mondella reportedly ex- him and outsiders,” said the source. took over from his ailing father in ed States,its longtime customers in- “My mom and I are planning to cused himself to a private bathroom “This is a secreted part of a large fac- 1983—told Crain’s earlier this year clude T.G.I. Friday’s, Chick-fil-A, run the company together for as and used an ankle-holstered pistol tory that was designed so a large that business had never been better, Steak ’n Shake, Red Lobster, Buffa- long as possible,” she said as her to shoot himself in the head after number of employees won’t know. following a $7 million capital-im- lo Wild Wings,Checkers and Olive mother,Antoinette,stared at a com- telling Ms. Capece to take care of What we’re expecting to see is a provement campaign that had near- Garden restaurants. Ⅲ

support in the community, but that he has done so despite a project de- Jed Walentas isn’t angry anymore sign that calls for buildings taller than a previous—and already approved—blueprint for the site that seemed like it might never come. newspaper we shouldn’t have said as smoothly than most other large- earlier owners had drawn up. Not with City Hall, Back then, Jed Walentas, the co- an organization, and I think both scale projects, including Brooklyn’s at least, as Two Trees head of Two Trees Management, sides probably think they could have Atlantic Yards and Queens’ Astoria The benefits of cutouts clashed with the de Blasio adminis- conducted themselves better—we Cove,which have been bedeviled by The key, observers note, was that finally breaks ground tration over its demands for more af- certainly do,” Mr. Walentas said in lawsuits and public protests. Mr. Walentas succeeded in showing at Domino Sugar site fordable housing on the site, before an interview with Crain’s. “But we Mr. Walentas credits part of his that taller and more slender build- ultimately agreeing to add another have a good relationship with City project’s turnaround to a lesson well ings—especially with their cutouts— 40 such units to the 660 already Hall and the mayor’s office, and like learned. will allow more sunlight to reach the BY JOE ANUTA planned. But the breakthrough any relationship, sometimes you do public spaces while affording tenants came only after negotiations nearly things you wish you hadn’t, but you and area residents alike better views A Brooklyn developer announced collapsed. Later, Mr. Walentas and move on and go forward.” ‘There is a lot out across the East River. Monday that construction workers his father, David, publicly accused Since then, the two sides have “There is a lot of misguided op- have sunk a shovel into the ground on city officials of overplaying their shifted gears and are now working of misguided position [in the city] to height,” Mr. the Williamsburg waterfront for the hand at the bargaining table and in relative harmony, as evinced by Walentas said, noting that zoning first of five buildings destined to open risking derailing the entire project. the 500-unit rental building soon opposition on the Williamsburg waterfront,for at the site of the Domino Sugar refin- Now, however, those disputes have to rise on the inland side of Kent example, comes with a height limit ery, dormant since 2004. been largely forgotten. Avenue. The 16-story, SHoP to height’ that often encourages shorter and It’s a day that just a year ago “Certainly we said things to the Architects-designed tower, with a boxier buildings, which he argues large cutout in the middle, will in- are worse for the community. clude 105 apartments for low- As another example of how the income residents, plus ground- debate has shifted over the past year, floor retail space. It is scheduled to the issue of architectural blandness open in two years. “Our experience is that the more is something that is on the minds of transparent we can be, and the more city planners as well.Just last month, Riverside walkway in works information we can pass on to people, the administration proposed tweaks Across Kent Avenue, along the the better our relationship [with the to the zoning laws that would allow waterfront, teams are wrapping up community] is,” Mr. Walentas said. developers in certain areas to build the demolition of several old refin- These days,that sharing includes taller—thus giving them more flex- ery buildings. And this month, an- an entire website dedicated to bi- ibility in the designs of their build- other team will begin work on the monthly construction updates ings, as long as they hold the interi- riverside infrastructure that in a year penned by a Two Trees staffer with or square footage the same. and a half will be ready to support a penchant for gritty, no-nonsense Mr. Walentas’ desire to construct the complex’s waterfront prome- prose. Take the bulletin of Feb. 11: buildings taller than those that had nade and shield the project from ris- “Asbestos abatement is ongoing in- previously won approval required ing water levels.When the complet- side the Boiler House stacks. Me- him to petition the de Blasio admin- ed project opens in six to eight years, chanical demolition will resume istration for its approval in the first it will boast 2,300 apartments and once abatement is complete. Sort- place—and is why the unusual nearly a half-million square feet of ing and grading activities are ongo- SHoP-designed towers will soon commercial space, along with a ing throughout the site.” take their places on the Williams- school and public open spaces. Such meticulous efforts have burg waterfront. Ⅲ

buck ennis Ironically, despite the rocky ne- paid off. While pockets of opposi- FLYING WALENTAS: Two Trees’ Jed Walentas starts construction this week on the first of five gotiations of last year, Domino tion linger, Mr. Walentas noted he LISTEN to a discussion at buildings planned for his Brooklyn waterfront project on the site of the old Domino Sugar refinery. seems to be moving ahead more has not only won a critical mass of CrainsNewYork.com/podcasts

6 | Crain’s New York Business | March 2, 2015 Eddie & Sean O’Keefe Owners, Chateau Grand Traverse Winery Chase Business Client

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Chase received the highest numerical score in the northeast region in the proprietary J.D. Power 2014 Small Business Banking Satisfaction StudySM6WXG\EDVHGRQWRWDOUHVSRQVHVPHDVXULQJȴQDQFLDOLQVWLWXWLRQVLQWKHQRUWKHDVW region (CT, ME, MA, NH, NJ, NY, PA, RI, VT) and measures opinions of small business customers with annual revenues from $100,000 to $10 million. Proprietary study results are based on experiences and perceptions of customers surveyed in July–September 2014. Your experiences may vary. Visit jdpower.com. © 2015 JPMorgan Chase Bank, N.A. Member FDIC Equal Opportunity Lender. Credit approval required. 20150302-NEWS--0008-NAT-CCI-CN_-- 2/27/2015 6:30 PM Page 1

OPINION CRAIN’S NEW YORK BUSINESS

Save our manufacturers Rance Crain editor in chief publisher, vp Jill R. Kaplan here’s an old saying popular with skeptics at bay by establishing industrial business zones, which EDITORIAL executive editor Jeremy Smerd of government initiatives: The best social conveyed a promise that the areas would not be rezoned. But editor at large Glenn Coleman deputy managing editors Valerie Block, program is a job. But these days, too many Mr. de Blasio has not reinforced this pledge. Indeed, his Erik Ipsen jobs don’t pay enough to make ends meet administration has weakened it by not taking a clear position. assistant managing editors Barbara Benson, Erik Engquist in New York City, where housing costs That’s left open the possibility that apartments could be put senior news producer Amanda Fung have risen three times as fast as median into the zones, even though administration claims that contributing editor Elaine Pofeldt columnists Greg David, Steve Hindy, Alair Townsend income during the past 15 years. “workforce housing” would be compatible with light senior reporters Theresa Agovino, Aaron Elstein, Lisa Fickenscher, Matthew Flamm, Mayor Bill de Blasio has responded with a relentless push manufacturing are scoffed at by the owners of businesses in Daniel Geiger, Adrianne Pasquarelli for affordable housing, but business advocate Leah these areas that rely on noisy equipment and trucks. reporters Joe Anuta, Chris Bragg, T Andrew J. Hawkins, Irina Ivanova, Archibald has a saying of her own that he would do well to Manufacturing in the city is a shell of its former self, but Jonathan LaMantia, Thornton McEnery keep in mind: No housing is affordable without a good job. it’s a hard shell, with news producer Emily Laermer web reporter/producer Nazish Dholakia Ms. Archibald’s north Brooklyn nonprofit helps industrial 75,000 employees art director Steven Krupinski deputy art director Carolyn McClain businesses, which the mayor should treasure because they Memo to mayor: providing products and staff photographer Buck Ennis pay well, provide opportunities for advancement and often services for other local copy desk chief Steve Noveck No housing copy editor Thaddeus Rutkowski don’t require a college degree.They make everything from businesses.That’s data editor Suzanne Panara researchers Jessica Kramer, Nicholas Wells dumplings to marine lighting to custom suits, have loyal is affordable roughly the number of editorial intern Yoona Ha customers and would like to expand their operations. Yet without a job affordable apartments ADVERTISING they are being squeezed by the hot market for residential real that the mayor advertising director Joanna Harp sales manager Irene Bar-Am estate and threatened by the mayor’s housing policy. proposes to create over senior account managers Although these businesses operate in areas zoned for 10 years. If he creates Jill Bottomley Kunkes, Courtney McCombs, Rob Pierce manufacturing, their landlords are seeking the higher rents those units but loses account managers Zita Doktor, Stuart Smilowitz sales coordinator LeAnn Richardson and sale prices they’d reap from residential development. our industrial jobs to credit manager Jason Hogan (313-446-0353) This expectation has sprung from such trends as the low-wage sectors whose workers require subsidized housing, CUSTOM CONTENT, EVENTS AND PRODUCTION conversion of commercial space into loft apartments, he will have accomplished nothing. director of custom content Trish Henry director of audience & content residential projects done in manufacturing zones with Saving industrial jobs would cost the city almost nothing. partnership development Michael O’Connor zoning variances or special permits, hotel construction, the director of conferences & events With words alone, Mr. de Blasio could signal to property Courtney Williams proliferation of self-storage facilities and even new schools. owners that their thriving industrial tenants are here to stay. events coordinator Adrienne Yee events coordinator & scheduler The Bloomberg administration kept some of these forces We cannot imagine what he’s waiting for. Alexis Sinclair reprint account executive Alicia Samuel production and pre-press director Simone Pryce CRAIN’S ONLINE POLL COMMENTS media services manager Nicole Spell ONLINE AND INTERACTIVE SERVICES general manager Rosemary Maggiore IS THE TO SUBSCRIBE: More than baby steps For print and digital subscriptions or customer BILL service, e-mail [email protected] or call 877-824-9379 (in the U.S. and Canada) or O’REILLY DELIVERING RESULTS ticipating hospitals, in aggre- venture to operate the Albert 313-446-0450 (all other locations). $3.00 a copy for gate, met the standard of an Einstein School of Medicine. the print edition; or $99.95 one year, $179.95 two SCANDAL The Healthcare Association of EED rate of 5% or lower. This historic agreement will years, for print subscriptions with digital access. www.crainsnewyork.com/subscribe GOOD New York State, representing Reports that present con- create a fully integrated entity hospitals and other health care flicting information and dra- that will secure Einstein’s future TO ADVERTISE: FOR BILL providers, objects to the matically different results limit as a world-class institution for Contact Joanna Harp at [email protected] or call 212-210-0278. Leapfrog Group’s portrayal of their usefulness in informing education and research. Other www.crainsnewyork.com/advertise O’REILLY? bloomberg news hospital maternity care in New consumers and helping changes are being implemented York in “Leapfrog Group: Call providers improve care. across our schools and campus- FOR INFORMATION ON OUR EVENTS: Yes. Mr. O’Reilly has the highest-rated news Contact Courtney Williams at for better baby care” (Crain’s —dennis whalen es allowing Yeshiva University show on cable not because he tells the truth [email protected] or 212-210-0257. Health Pulse, Feb. 23). President to move forward, with excel- www.crainsnewyork.com/events but because he channels his audience’s The article failed to recog- Healthcare Association of NY State lence, and remain a vibrant worldview. TO CONTACT THE NEWSROOM: nize New York hospitals’ suc- place of learning and living. 685 Third Ave., New York, NY 10017-4024 No. Mr. O’Reilly basically lied, and this time cess in reducing early elective EINSTEIN DOING FINE, —richard joel editorial phone: 212-210-0277 the full weight of the score-settling mob that is deliveries (EEDs), including YESHIVA SAYS President fax 212-210-0799 through HANYS’ collabora- Yeshiva University Entire contents ©copyright 2015 Crain Communications Inc. the Internet will crush him. All rights reserved. ®CityBusiness is a registered trademark Date of poll: Feb. 24 tions with the Greater New A far too broad brush is used to of MCP Inc., used under license agreement. 154 votes York Hospital Association and characterize the organizations ILLEGAL HOTELS the New York State Perinatal highlighted by “Nonprofits in CRAIN COMMUNICATIONS INC. BOARD OF DIRECTORS chairman Keith E. Crain Quality Collaborative. search of accountability” (Op- “The city’s worst illegal hotel” president Rance Crain For example, through the ed, Feb. 23). Yeshiva University (Feb. 16) was excellent, in- treasurer Mary Kay Crain New York State Partnership for is confronting sustainability depth, and covered the bases. Cindi Crain Patients, a three-year initiative challenges that plague many The reporter went the extra executive vp, operations William Morrow in which hospitals worked to- private universities with an ag- mile (rented a room? Then executive vp, director of strategic 52% 48% gether to implement evidence- gressive plan that will maintain Robert Lebensfeld said he was operations Chris Crain Yes No executive vp, director of corporate based practices, there was a 90% quality, market share and con- unaware of illegal hotel activi- operations K.C. Crain decrease in the rate of babies tinue to serve our distinctive ty!) so that we, the readers, senior vp, group publisher David Klein delivered before full term when student mission. could know the truth. vp/production, manufacturing David Kamis chief financial officer Thomas Stevens not medically necessary—giv- One example is our recently —tom cayler chief information officer Anthony DiPonio ing infants a healthier start and announced plan with Monte- West Side Neighborhood Alliance reducing risk for mothers. Par- fiore Health System for a joint Illegal Hotel Committee founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) secretary Merrilee Crain (1942-2012) FOR THIS WEEK’S QUESTIONS: CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to [email protected]. Send columns of 475 Go to www.crainsnewyork.com/poll to have your say. words or fewer to [email protected]. Please include the writer’s name, company, address and telephone number.

8 | Crain’s New York Business | March 2, 2015 20150302-NEWS--0009-NAT-CCI-CN_-- 2/27/2015 12:14 PM Page 1

ROBERT S. ALTMAN must either pay exorbitant fees or face costly delays (and in many cases, it is not just the builder who suf- A city agency that’s fers but also the homebuyer). Who wants to tell the people waiting to move in that they have to wait for the Parks Department? out of its tree Nor does Parks really care. It does not allocate enough staff to s the mayor seeks to remove foolish bureaucratic the process, having recently lost impediments to affordable-housing development employees in the area and not re- placing all of them, despite not and construction in general, he would be wise to having been on top of matters in focus on one agency that few people know has be- the first place. Parks has not even come an integral part of the process: the Depart- put forward complete regulations ment of Parks and Recreation. on this and often flouts the ones A that it does have. With the advent of former Mayor Michael Bloomberg’s Frankly, the agency’s mandate is MillionTreesNYC initiative, the Parks Department gained an not to move development projects along.It could be argued that its nat- inordinate amount of power over Parks now has a stranglehold on ural bias is to do the opposite.Its pri- projects. With the tree program development.Builders must submit ority is creating and maintaining and a misreading of current law, a tree-siting plan before the De- park space. Why it has any role in the agency infused itself into the partment of Buildings will issue a the development process is confus- development process and started permit for construction. And then, ing. This function could easily be charging truly ridiculous fees to at the end, Parks must approve the handled by the Department of developers for taking down trees implementation of the plan before Buildings,which can address tree is- under its jurisdiction, and then the Department of Buildings will sues as part of its plan reviews and planting replacement trees, issue a certificate of occupancy. But site inspections. whether done by Parks or the de- Parks is woefully slow to complete It is time to have Parks focus on veloper itself. these steps, creating a double its mission and take it out of the de- This zealotry was exacerbated by whammy of slowing the construc- velopment process. new zoning regulations instituted by tion process at its infancy and at its the City Planning Commission, completion. Robert S. Altman is the legislative which—while more reasonable than Moreover, trees may be planted consultant to the Queens & Bronx Building the rules promulgated by Parks— only during specific times of the Association and the Building Industry often clash with Parks’ regulations. year. One wrong step and a builder Association of New York City.

KEY longer got in the NUMBERS way. The state’s PROMOTE. Stop playing games actuaries told Why not? Mr. DiNapoli Let the Custom Reprint Department help you promote this great press. that pension- CRAIN’S® N E W YORK BUSIN ESS

VOL. XXXI, NO. 1 WWW.CRAINSNEWYORK.COM JANUARY 5-11, 2015

CRAIN’S® N E W YORK BUSIN ESS

VOL. XXXI, NO. 1 WWW.CRAINSNEWYORK.COM OPINION JANUARY 5-11, 2015 CRAIN’S® NEW YORK BUSINESS CRAIN’S® N E W YORK BUSIN ESS OPINION VOL. XXIX, NO. 39 WWW.CRAINSNEWYORK.COM SEPTEMBER 30, 2013 ExpandVOL. XXXI, NO. 1 WWW.CRAINSNEWYORK.COMthe Frick museum 11 1 fund beneficiar- JANUARY 5- , 20 5 mong the many things hang their coats and use the bathrooms. expansion plan the Frick envisioned all Expand thethat makeFrick New York City Modern museum wheelchairs cannot fit through those years ago. NY Area’s Largest Accounting Firms great areOPINION its museums. the doors. The museum’s thoughtfully updated with pension funds More than 100 of them, Decades ago, museum officials and designed proposal, which requires Ranked by number of area professionals each with its own bought and demolished three adjacent both a zoning exception and landmarks $ mong the many things hang their coats and use the bathrooms. expansion plan the Frick envisioned all #$$ $ & # character, enhance the quality of life for buildings to expand their Fifth Avenue commission approval, is to replace the ! # % $& ' & ! !! that make New YorkA City Modern wheelchairs cannot fit through those years ago. " ! ! ! " " residents and keep tourism dollars institution and connect it to the Frick private garden with a public one on the $177B great are its museums.flowing intothe locals’doors. pockets. Art ReferenceThe Library. museum’s They thoughtfully couldn’t updatedroof of a new addition. The neighbors’ ( B190'9 %&@E341B " ! ! "! / Expand the Frick museum 6GPUd`Y$gQ hhhahII`X + + !+ More than 100 of them, Decades ago, museum officials and designed proposal, which requires Among the many things that make afford to do the project then, so they kvetching, boiled down, is that they will 7QhE`cV7E each with its own bought and demolished three adjacent both a zoning exception and landmarks the city infuriating are its kvetchers. created a splendid private garden on the lose their view of a closed garden. We )*+, -.*/ ")@DD%'7750'H " ! / character, enhance the quality of Theselife for arebuildings the folks to expand who theirreact Fifth to Avenue commission approval, is to replaceside the with the other 8.3 million New AUXQd@bfGcQ hhhQpI`X 5)4'179C1BB' !+ "+ + A mong the many things hang their coats and use the bathrooms. expansion plan the Frick envisioned all 7QhE`cV7E residents and keep tourism dollarschange byinstitution asking, “What’sand connect in itit tofor the Frick private garden with a public one Yorkerson the and 55 million tourists who flowing into locals’ pockets. Art Reference Library. thatThey make couldn’t TheNew York roofpublic Cityof a newModern addition. wheelchairs The neighbors’ cannot fit through those years ago. !" !@(1BD %'BB1DD " ! / me?” They bemoan any idea that would get a garden they can visit—and 8GcV$gQ hhhVaXSI`Xfd + "+ + Among the many things that make afford to do the projectgreat then, areso theyits museums.kvetching, boiledthe doors. down, is that they will The museum’s thoughtfully updated 7QhE`cV7E might inconvenience them. More thanbenefits 100 of them, offsetDecades ago, museuma vastly officialssuperior “houseand designed museum” proposal, which requires the city infuriating are its kvetchers.Whichcreated brings a splendidus to privatethe Frick garden on the lose their view of a closed garden.experience, We too. 01-2,,0 " 19BH 45775AC ! ! YP / These are the folks who react to each withthe itslostside ownwith views thebought other of and 8.3 demolished million New three adjacent both a zoning exception and landmarks 9ÌVQRQWWQc8WGqG hhhPQWÙeeQI`X + YP ! + Collection, the magnificent little art The Frick could build on its property 7QhE`cV7E ies on average change by asking, “What’s in it for character, enhance the quality Yorkersof life for andbuildings 55 million to expand tourists their who Fifth Avenue commission approval, is to replace the museum housedThe p Aublicin the former a privileged few without a zoning action, but the current 2+*0)340) ""! 4'B71C%159CD159 /" residents and keep tourism dollars institution and connect it to the Frick private garden with a public one on the me?” They bemoan any idearesidence that of Gilded Age industrialist would get a garden they can visit—andrules demand a tall, thin building that’s ATUcP$gQ hhhQUdYQcGXaQcI`X @G'B0@419 + + "+ AMOUNT flowing into locals’ pockets. Art Reference Library. They couldn’t roof of a new addition. The neighbors’ 7QhE`cV7E in NY might inconvenience them. benefits offset a vastly superior “house museum” Henry Clay Frick. hardly ideal for a museum. Of course, if Which brings us to the Frick Among the many things thatexperience, make affordtoo. to do the project then, so they kvetching, boiled down, is that they will -5*06*278 " "D1F19'H1B ! " " /!! A longtimethe fixture lostthe cityofviews theinfuriating city’s of are its kvetchers. created a splendid privatethe Frick garde nhad on theproposedlose suchtheir aview tower, of a closed garden. We @UieT$gQ hhhI`TYcQqYUIVI`X + + + Collection, the magnificent littleMuseum art Mile, the Frick has seen its expansion siteThe in Frick the interim. could build on its propertyneighbors would have griped about that 7QhE`cV7E museum housed in the former These are the folks who withoutreact to a zoning action, but the current side with the other 8.3 million New attendance arise p nearlyrivileged 40% since few the Neighbors of the museum, suddenly as well. They want the garden, and )*, 5-)*,-* "" B'96EBB1 YP residence of Gilded Age industrialist change by asking, “What’s rulesin it demandfor Thea tall, thin public building that’s Yorkers and 55 million tourists who ATUcP$gQ hhhScGYeeT`cYe`YI`X + + YP mid-1990s but lacks me?”the space They to showbemoanblessed any withidea athat view of a garden rather everything else, to staywould the way get ait garden is. they can visit—and 7QhE`cV7E Henry Clay Frick. much of its collection of Old Master than the hardlysides idealof buildings, for a museum. came Ofto course,“It’s if a beautiful garden,” a museum might inconvenience them. benefits offset a vastly superior “house museum” )7.3 ! 122B1H%%1591B / A longtime fixture of the paintings,city’s European sculpture and treasure thethe greenFrick space,had proposed although such (or a officialtower, admits. “We built it.” ATUcP$gQ hhhXGcIfXWWaI`X + "+ + Museum Mile, the Frick has seen its expansion site Whichin the interim. brings us to theneighbors Frick wouldthe have lost griped views about that of experience, too. 7QhE`cV7E decorative arts. Its concertCollection, series the and magnificentperhaps because)little art it was closed to the And now it’s ExhibitThe A inFrick a classic could build on its property attendance rise nearly 40% sincestudent the programsNeighbors cannot of the meetmuseum, the suddenlypublic. Youas canwell. tell They where want this isthe going: garden,lesson and of New York City land use: No 719)0: &@9'70F%5A'B5 " ! /! museum housed in the former a privileged few without a zoning action, but the current !@UieT$gQ hhhXISWGPcQpI`X + + + mid-1990s but lacks the space todemand. show blessedPatrons with wait a inview lines of justa garden to Somerather neighborseverything now else, object to stay tothe theway itgood is. deed goes unpunished. 7QhE`cV7E much of its collection of Old Master than the sidesresidence of buildings, of Gilded came Age to industrialist“It’s a beautiful garden,” a museum rules demand a tall, thin building that’s !!! B5'9))71CD@9 " " / paintings, European sculpture and treasure theHenry green Clayspace, Frick. although (or official admits. “We built it.” hardly ideal for a museum. Of course, if 8GcV$gQ hhhHPÌ`X !'90H")4G'BDI8'9 + !+ "+ decorative arts. Its concert series and perhaps because)A longtimeit was closed fixture to theof the Andcity’s now it’s Exhibit A in a classic the Frick had proposed such a tower, 7QhE`cV7E Museum Mile, the Frick has seen its expansion site in the interim. neighbors would have griped about that -,5+,02* ++ "" "D1F19'CC ! " /" student programs cannot meet the public. YouReprinted can tellwith wherepermission this from is thegoing: Crain's Newlesson York Business of New. © 2015 York Crain City Communications land use: NoInc. All Rights reserved. @UieT$gQ hhhcVIÌ`X #4@8'CF93177 + + + state pension demand. Patrons wait in lines just to Some neighborsattendanceFurther now duplication riseobject nearly withoutto 40%the permission sincegood is deedthe prohibited. goesNeighbors Visit unpunished. www.crainsnewyork.com. of the museum, #NB15004 suddenly as well. They want the garden, and 7QhE`cV7E" will live about mid-1990s but lacks the space to show blessed with a view of a garden rather everything else, to stay the way it is. 02+0)6)+ ! &@E37'CF% 45775AC " / much of its collection of Old Master than the sides of buildings, came to “It’s a beautiful garden,” a museum DeT@e hhhhQUdQcXGqGcdI`X + + + paintings, European sculpture and treasure the green space, although (or official admits. “We built it.” 7QhE`cV7E Reprinted with permission from the Crain's New York Business. © 2015 Crain Communications Inc. All Rights reserved. -**-) ;20+ ! 1F59%1'91 ! /!! decorative arts. Its concert series and perhaps because) it was closed to the And now it’s Exhibit A in a classic )UReT$gQ hhh`PaVRI`X + + !+ Further duplication without permissionstudent is prohibited. programs Visit www.crainsnewyork.com. cannot meet #NB15004the public. You can tell where this is going: lesson of New York City land use: No 7QhE`cV7E demand. Patrons wait in lines just to Some neighbors now object to the good deed goes unpunished. 2,)2* --40)3* - " @17F%@@A1B8'9 ! " / ")UReT$gQ hhhIUecUYI`àQcXGYI`X + + + 7QhE`cV7E

Reprinted with permission from the Crain's New York Business. © 2015 Crain Communications Inc. All Rights reserved. ew Jersey Gov. Chris Christie is catching flak fund two years longer Further duplication without permission is prohibited. Visit www.crainsnewyork.com. #NB15004 Logo Licensing over his failure to deal with that state’s pension than expected. Hard Copies Eprints (Digital Reprints) Plaques & Frames So the comp- crisis,in which years of missed contributions have For more information contact $3B troller increased Alicia Samuel, Reprint Account Executive resulted in a seriously underfunded pension plan. STATE what the state [email protected] • tel 212.210.0750 New York Gov.Andrew Cuomo is playing pen- PAYMENTS that had to fork over have been by nearly $400 Congratulations to sion games, too, and he deserves more criticism on this issue skipped N million. Mr. MACKENZIE SCHOONMAKER than he is getting.State Comptroller Thomas DiNapoli and the Cuomo decided legislature share the blame, too. he’d just borrow on her election as a Principal of the Firm $1B+ the money. It is Here’s the story. LOCAL almost as though PAYMENTS that During the difficult years of the have been he said, “I’m Great Recession, annual pension- missed done with the funding contributions became a budget, and I’m more pressing problem for local not going to deal with this.’’ governments because tax revenues The state’s richest localities are were tumbling and stock markets even more cavalier than the gover- were free-falling, which meant big- nor. Westchester County has ger contributions were required to avoided $91 million in recent offset poor investment returns. years, and supposed fiscal hawk To help out, the New York Leg- Rob Astorino is planning to skip islature decided to allow the state $15 million in the next budget, a Mackenzie helps clients nationwide navigate and localities to make part of their key way he has avoided increasing issues arising under the federal pesticides pension contributions with IOUs. GREG DAVID taxes. The phrase “kicking the can down Admittedly, New York is not statute, FIFRA, the Clean Water Act, and the road’’ is particularly applicable New Jersey, and Mr. Cuomo is not related environmental laws. here because missed payments Mr. Christie, whose record in this eventually must be made up with well north of $1 billion. Gannett matter is abysmal. New York’s pen- interest. was able to discover that 133 munic- sion system is among the best- Even in the context of the state ipalities avoided a total of $472 mil- funded in the country; New Jersey’s pension fund—$177 billion at last lion in contributions last year, up is among the worst. count—the missing money is sub- 22%, from $368 million deferred, in The important point is that the 477 Madison Avenue stantial.The state has avoided some 2013. IOUs were designed to deal with a New York, NY 10022 $3 billion in payments so far. The Interestingly, Mr. Cuomo origi- crisis. The recession is over, tax rev- www.bdlaw.com Environmental & Land Use Law & Litigation comptroller has not been forthcom- nally planned to make the state’s re- enues are growing,and pension paying on how much local governments quired payment this year. Then the ments should be made. CALIFORNIA MARYLAND MASSACHUSETTS NEW JERSEY have deferred, but the number is fact that New Yorkers are living Period. NEW YORK TEXAS WASHINGTON, DC

March 2, 2015 | Crain’s New York Business | 9

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OPINION

SETH PINSKY is growing annually at 10%. borough density,but why not expand This brings me to the final flaw in the playing field by looking to sub- our approach to affordable housing: urban downtowns? Many have suf- Rethink the affordability problem myopia.The city’s population densi- fered over time, but have the charac- ty is about 25,000 people per square ter, diversity, walkability and, most mile.But the region’s is 2,800—sim- important, transit that, with com- most acute. We should address this. ilar to the sprawling Los Angeles paratively little investment, could n a recent New York Times editorial titled “Can New York Even when we build units for the area. Yet our leaders rarely look be- make them highly desirable to the Be Affordable Again?”the paper focused entirely on May- right people, we generally do not yond the five boroughs to address af- middle and working classes. or Bill de Blasio’s housing plan.The paper’s support of this “means test” them after they move fordability.I love New York as much We are having a healthy dialogue in,leading to a mismatch.For exam- as the next person, but the laws of about affordability. But we must key initiative is great,but the piece reflected common mis- ple, nearly 50,000 of the city’s 1 mil- economics are clear: If you squeeze properly frame the problem, then understandings about affordability. lion rent-stabilized units house resi- more people into the same space, find new strategies to guide us to the To start, while affordability is at crisis levels for many New dents earning more than $150,000 a prices rise. The de Blasio adminis- inclusive prosperity we all seek. I year.One in every eight very well-off tration rightly proposes to grow our Yorkers, our city is not in crisis. Rather, we are thriving.To the New Yorkers lives in a precious rent- city in the one dimension we con- Seth Pinsky is an executive vice president at extent affordability is an issue, it is because we are doing so well. stabilized unit, while homelessness trol—up—by increasing outer- RXR Realty, a tristate-area real estate firm.

We are attracting more residents and businesses than we can accom- modate,which is driving up costs.As With today’s technology, there are more we properly focus on treating the ways than ever to manage energy negative symptoms of our generally consumption. And new incentives to positive condition, we need a robust use them. Con Edison is offering nearly plan to nurture the underlying con- $200 million in rebates for their Demand dition itself. It would hardly be a vic- Management program. So it’s easier tory if we solved the affordability than ever for commercial and multifamily challenge while losing the macroeco- buildings to make energy efﬁciency nomic success that we need to pro- improvements. Together with NYSERDA, vide the resources for these solutions. we’re giving you new and creative ways to go green. While spending less of Though our city’s leadership certain- your own. Remember, these incentives ly understands this, to avoid this fate won’t last forever, so be sure to we must accentuate and cultivate the take advantage of them while you can. positive at least as diligently as we Call 877-797-6347 or email us at work to eliminate the negative. [email protected]. The second problem with our approach is its narrow focus on housing costs. Affordability is a ratio of cost to income. To rebalance it, we must address both sides. Even if the may- or succeeds in creating and preserv- ing the 200,000 affordable units anticipated by his historic 10-year plan, that number represents just 6% of existing housing units—significant, but insufficient.We need to be equal- ly aspirational in terms of scale and resources in creating employment for low-skilled workers,who suffer most from our affordability challenge. This means more than just raising the minimum wage or attaching wage requirements to city benefits. We should also think of economic- development subsidies not as a give- away, but as a tool to encourage a social good that the market isn’t creating, just like housing subsidies. Imagine the jobs we could create for the low-skilled using public resources at the scale we do for housing. A related issue is the signal that the emphasis on housing is sending to the real estate market. Owners of job-producing properties across the city interpret it as an openness to re- zone any area, provided that affordable housing is created—even if it re- duces employment for the intended beneficiaries of that housing. I regu- THE INCENTIVES larly see commercial real estate priced at residential values, forcing out businesses that provide jobs to our most vulnerable citizens. Also, our programs to create af- JUST WENT UP fordable housing tend not to target the people most in crisis. The city’s overall ratio of median rent to in- TO KEEP ENERGY CONSUMPTION come is over 30%, the level at which households are considered “rent- burdened.” But it’s 93% for those earning $10,000 to $14,999, while it’s below 30% for those making DOWN. $50,000 or more.Yet under the may- or’s groundbreaking plan, only 20% of units go to households earning under $42,000, where the crisis is

March 2, 2015 | Crain’s New York Business | 11 20150302-NEWS--0012-NAT-CCI-CN_-- 2/26/2015 7:15 PM Page 1

REAL ESTATE INSIDE The List CoStar’s top Manhattan office leases PAGE 14 ‘There isn’t really a backbone to this industry’ REPORT —Caren Maio, CEO of listings startup Nestio, Page 16 Nonprofit landlords eye huge windfall Proposal would allow sale of $600M in air rights for landmarks

BY JOE ANUTA

A group of City Council members sent Mayor Bill de Blasio a letter last week urging him to allow nonprofit owners of landmarked buildings, including scores of churches, to sell a com- bined 25 million square feet of their air rights. Those would be purchased by developers in a few selected areas across the city to build taller buildings. Democratic Councilmen Peter Koo of Queens and Ritchie Torres and Fernando Cabrera of the Bronx argued in the Feb. 24 letter that such a system would allow nonprofit owners NUMBER180 of of 180 land- landmarked SPEEDING THINGS UP: marked prop- buildings, StreetEasy’s Susan including many Daimler wants to move erties to cash churches, that listing information faster. in on their full could cash in property values.Under current rules,those unused rights can be transferred only to sites close by. “As you know, many religious and nonprofit institutions housed in individually designated landmarked structures struggle to maintain their buildings while providing services to further their mission,” the letter stated. Mr. One place for all the data Koo is chair of the Committee on Landmarks, Public Siting and Maritime Uses, and Mr. Torres is A new system would help landlords fill vacancies and brokers sell apartments deputy leader of the council. The trio used concepts and big established brokerages—insist the system’s days are num- numbers contained in a proposal BY JOE ANUTA INSIDE INFO bered and busy themselves maneuvering for a killer edge in a advanced by a group called Icon- new marketplace by collecting,analyzing and using data most plans, which is led by former real For decades, residential brokerages in the city have success- efficiently. It remains to be seen if any outfit can become the estate broker and grocery-store fully resisted creating something long commonplace just city’s de facto listing service,but a number of brokerages have executive Lawrence Daitch and about everywhere else—a single clearinghouse of reliable $73M no intention of waiting to find out. real estate investor Michael Lip- CAPITAL raised by information on apartments for sale or rent,known as a mul- Compass “Data is king,” said Luis Guevara, Town Residential’s stein. The duo first floated their tiple-listing service. Instead, information flows from a vari- freshly minted head of technology. “And the firms that are idea years ago, during the ety of different sources, and agents have kept a big chunk of able to produce the best data sets are going to have the better Bloomberg administration. listings as private as possible.The result? A landscape where analytical tools to work on both the buyers’and sellers’sides.” That proposal, along with a information changing hands among landlords, brokers, 30K Many landlords, brokers and customers alike in recent host of other ideas from a number websites and consumers is often outdated and incorrect. NNUMBER of listings on years have come to the same conclusion: Change is overdue. of panelists, was presented late in Now a number of players—from techie upstarts to some StreetEasy.com See DATA on Page 16 the week at a Baruch College event, where Carl Weisbrod, the director of the Department of

buck ennis See LANDMARKS on Page 16

12 | Crain’s New York Business | March 2, 2015 Rudin Management Company

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www.rudin.com 20150302-NEWS--0014-NAT-CCI-CN_-- 2/26/2015 6:56 PM Page 1

THE CoStar’s Top Manhattan Office Leases LIST Biggest Manhattan transactions in 2014, ranked by square feet

Address Square feet Tenant Tenant representative(s) Landlord/sublandlord Landlord/sublandlord representative(s) Submarket 1 11 Madison Ave.1 1,066,132 Credit Suisse CBRE Sapir Organization Newmark Grubb Knight Frank; CBRE Gramercy Park 2 60 Columbus Circle2 943,438 Time Warner Inc. Savills Studley Related Cos.; Abu Dhabi Investment Related Cos. Columbus Circle Authority; GIC Real Estate 3 225 Liberty St.2 699,124 Time Publishing Ventures Inc. Savills Studley Brookfield Property Partners Brookfield Property Partners World Trade Center 4 99 10th Ave.1 570,000 U.S. Drug Enforcement Administration Direct Deal Hirschfield Realty Hirschfield Realty Chelsea 5 11 Madison Ave.2 547,996 Sony Corp. of America CBRE Sapir Organization CBRE Gramercy Park 6 345 Park Ave.3 489,495 Blackstone Newmark Grubb Knight Frank Rudin Management Co. Rudin Management Co. Plaza district 7 7 W. 34th St.2 470,143 Amazon Cushman & Wakefield Inc. Vornado Realty Trust Vornado Realty Trust Penn Plaza/Garment district 8 150 E. 42nd St.2 448,819 Mount Sinai Health System Cushman & Wakefield Inc. David Werner Real Estate CBRE Grand Central 9 1221 Sixth Ave.2 440,218 White & Case JLL Rockefeller Group Cushman & Wakefield Inc. Times Square 10 601 Lexington Ave.1 403,000 Kirkland & Ellis Savills Studley Boston Properties Inc. Boston Properties Inc. Plaza district 11 767 Fifth Ave.1 388,492 Weil Gotshal & Manges CBRE Boston Properties Inc. Boston Properties Inc. Plaza district 12 1 Chase Manhattan Plaza1 369,588 Milbank Tweed Hadley & McCloy Cushman & Wakefield Inc. Fosun Property Holdings Newmark Grubb Knight Frank Financial district 13 225 Liberty St.2 358,278 Bank of New York Mellon JLL Brookfield Property Partners Brookfield Property Partners World Trade Center 14 1290 Sixth Ave.2 355,000 Neuberger Berman Group Newmark Grubb Knight Frank Vornado Realty Trust Vornado Realty Trust; Plaza district Cushman & Wakefield Inc. 15 11 Penn Plaza3 323,922 AMC Networks CBRE Vornado Realty Trust Vornado Realty Trust Penn Plaza/Garment district 16 919 Third Ave.1 282,102 Schulte Roth & Zabel CBRE SL Green Realty Corp. SL Green Realty Corp. Plaza district 17 450 W. 33rd St.3 267,669 City of New York CBRE Brookfield Property Partners Newmark Grubb Knight Frank Penn Plaza/Garment district 18 2 Penn Plaza1 250,596 MSG Holdings Cushman & Wakefield Inc. Vornado Realty Trust Vornado Realty Trust Penn Plaza/Garment district 19 225 Liberty St.2 238,812 Hudson’s Bay Co. Laura Pomerantz Real Estate; Brookfield Property Partners JLL; Brookfield Property Partners World Trade Center CBRE 20 1221 Sixth Ave.2 209,710 Mitsubishi UFG Cushman & Wakefield Inc. Rockefeller Group Cushman & Wakefield Inc. Times Square 21 225 Park Ave. S.2 194,193 BuzzFeed Olmstead Properties Orda Management Newmark Grubb Knight Frank Gramercy Park 22 200 Park Ave.2 190,914 Paul Hastings Janofsky & Walker CBRE Tishman Speyer Tishman Speyer Grand Central 23 1 Vanderbilt Ave.2 190,180 TD Bank CBRE SL Green Realty Corp. SL Green Realty Corp. Grand Central 24 731 Lexington Ave.1 189,124 Bloomberg LP CBRE Alexander’s Inc. Vornado Realty Trust Plaza district 25 599 Lexington Ave.1 181,209 Reed Smith JLL Boston Properties Inc. Boston Properties Inc. Plaza district 26 245-249 W. 17th St.2 180,000 Twitter JLL Savanna Real Estate Fund Newmark Grubb Knight Frank Chelsea 27 230 W. 41st St.1 179,900 City University of New York Direct Deal 230 West 41st Street LLC Colliers International Times Square 28 330 W. 34th St.2 178,342 New York & Company CBRE Vornado Realty Trust Vornado Realty Trust Penn Plaza/Garment district 29 85 10th Ave.2 178,065 Google CBRE Related Cos.; Vornado Realty Trust Newmark Grubb Knight Frank Chelsea 30 9 W. 57th St.3 177,320 Chanel Inc. CBRE Solow Building Co. JLL Plaza district 31 1 New York Plaza2 176,121 Macmillan Science and Education Colliers International Brookfield Property Partners CBRE; Brookfield Property Partners Financial district 32 450 W. 33rd St.2 173,000 R/GA Media Group Inc. JLL Brookfield Property Partners Cushman & Wakefield Inc. Penn Plaza/Garment district 33 825 Seventh Ave.1 172,975 MEC CBRE Edward J. Minskoff Equities Inc. Vornado Realty Trust; Columbus Circle Edward J. Minskoff Equities Inc. 34 25 Broadway2 172,774 Teach for America CBRE ACTA Realty CBRE World Trade Center 35 250 Vesey St.2 166,279 Hudson’s Bay Co. CBRE Brookfield Property Partners JLL; Brookfield Property Partners World Trade Center 36 237 Park Ave.3 166,000 Jennison Associates CBRE RXR Realty JLL Grand Central 37 770 Broadway2 159,733 J. Crew Group Inc. Savills Studley Vornado Realty Trust Vornado Realty Trust Greenwich Village 38 199 Water St.3 159,593 Allied World Assurance Co. (U.S.) Newmark Grubb Knight Frank Jack Resnick & Sons Inc. Cushman & Wakefield Inc. Insurance district 39 1 New York Plaza2 157,210 OSP Group Newmark Grubb Knight Frank Brookfield Property Partners CBRE; Brookfield Property Partners Financial district 40 11 Madison Ave.2 152,232 Yelp Inc. CBRE Sapir Organization CBRE Gramercy Park 41 520 Madison Ave.3 140,466 Carlyle Investment Management Cushman & Wakefield Inc. Tishman Speyer Tishman Speyer Plaza district 42 125 Park Ave.3 133,215 Newmark Grubb Knight Frank Newmark Grubb Knight Frank SL Green Realty Corp. Newmark Grubb Knight Frank Grand Central 43 151 W. Broadway1 131,991 City of New York Direct Deal Newmark Holdings Newmark Grubb Knight Frank TriBeCa 44 112 W. 34th St.2 131,117 Macy’s CBRE Empire State Realty Trust Newmark Grubb Knight Frank Penn Plaza/Garment district 45 757 Third Ave.2 130,384 Grant Thornton DTZ RFR Realty JLL; RFR Realty Plaza district 46 1301 Sixth Ave.2 125,315 CohnReznick CBRE Paramount Group Inc. Newmark Grubb Knight Frank Columbus Circle 47 450 W. 33rd St.2 123,000 JPMorgan Chase & Co. JLL Brookfield Property Partners Cushman & Wakefield Inc.; Penn Plaza/Garment Brookfield Property Partners district 48 205 E. 42nd St.2 122,159 WeWork Cushman & Wakefield Inc. Durst Organization Durst Organization Grand Central 49 590 Madison Ave.1 121,055 IBM Corp. CBRE State Teachers Retirement Edward J. Minskoff Equities Inc. Plaza district System of Ohio 50 51 Astor Place2 118,435 IBM Watson Group CBRE Edward J. Minskoff Equities Inc. JLL Greenwich Village This list includes leases with terms of more than two years. 1-Renewal. 2-New lease. 3-Renewal and expansion. CoStar Group Inc., a provider of information services to the U.S. and U.K. commercial real estate industries, offers customers access via the Internet to the most comprehensive verified database of commercial real estate information in the U.S. and U.K. For more information, visit www.costar.com or call (877) 7-COSTAR.

14 | Crain’s New York Business | March 2, 2015 CUSHMAN & WAKEFIELD is proud to have represented The Rockefeller Group in more than 720,000 square feet of lease transactions, including two of the WRSODUJHVWRIÀFHOHDVHVRIWKH\HDU

The team has completed more than one million square feet of lease transactions since being named H[FOXVLYHDJHQWLQ

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REPORT REAL ESTATE

stored in a central location, rather than separate informational silos. Brokers need one place for all the data For example: Because Compass’ records on closed transactions are connected to the database on current Continued from Page 12 It’s a problem StreetEasy en- Daimler said.“It benefits everybody: communicating data, which we are valuations, agents can instantly see As apartment hunters have moved countered when it first began trying The brokerages get their listings up attempting to slowly clean up,” said how much a former client’s property their searches online and brokerages to harness the power of New York more quickly, and we get consumers Steven Goldschmidt of Warburg sold for, and how much it has in- have armed their staffs with the latest City’s messy data landscape back in who are better informed.” Realty, who helps manage REB- creased or decreased in value since smartphones, tablets and websites, 2006, according to Susan Daimler, Others are trying to address an- NY’s system. then. The connected databases also glaring shortcomings have emerged general manager of the listings site, other longtime sticking point in the allow Compass agents to tell clients in the information behind the tens of which was purchased by Zillow for sector,the technology-starved land- Compass finds the path how much longer, on average, their thousands of co-op, condo and rental $50 million in 2013. lord. That’s where firms such as But of all the wielders of new property will sit on the market if they listings up for grabs on any given day. The firm has long employed a Nestio come in. That company is technology, no real estate company price it above its value and on which That’s why firms like Nestio and hoping to provide a real-time con- has generated more buzz than Com- websites to market it. brokerages like Compass, formerly nection between brokers and build- pass. Since Robert Reffkin and Ori The firm tracks individual agents known as Urban Compass, have ‘To us, winning ing owners and managers. The idea Allon created the company in 2012, as well, assigning them the sort of been raising tens of millions of dol- is that landlords will use Nestio’s in- more than $73 million has poured in stats commonly associated with lars in venture-capital money with means becoming terface instead of a spreadsheet, and from investors in three rounds of sports stars: percentage of sales the aim of fundamentally changing rather than waiting for an email, fundraising. While many in the closed, length of time their proper- the way data are stored and trans- the system brokers will be able to notice any up- property industry remained deeply ties were listed,and the ratio of clos- ferred, and ultimately helping land- dates right away. skeptical as the firm kept mum on ing price versus asking price. Al- lords fill vacancies faster,brokers sell of record’ “There isn’t really a backbone to how its mousetrap marked an im- though the information can be used more apartments and buyers and this industry,” said Caren Maio, provement over anybody else’s, the to show off the track record of cer- renters become smarter consumers. chief executive of Nestio, which in outward signs were there. tain employees, it is also a formula Investors in tech-savvy real es- the past two years has raised more Compass signed pricey leases in that Compass is using to identify tate companies hope to get rich by than $3 million in several rounds and 90 Fifth Ave. and the landmarked top prospects in other companies. bringing modern solutions to an in- data-integrity team to manage in- already counts major landlords such Lever House on Park Avenue,while It is beginning to be clear what dustry in dire need of them. Today, formation, such as recent closings as Two Trees as clients. “To us, win- touting its roster of ex-Google, the money has been going toward.A for instance, many landlords still and new listings, coming from pub- ning means becoming the system of Twitter and Facebook engineers. search for apartments with swim- keep track of their vacant apart- lic and private sources,and to ensure record for landlords and brokers.” But more recently, it has begun to ming pools on the Compass web- ments in a spreadsheet stored on all the material powering the site’s Her firm is also helping to get talk about what those engineers site, for example, turned up more their desktop computer and then search tools is as current and accu- more reliable information to the clos- have been up to. than 600 results. On the site of a periodically email vacancies to bro- rate as possible. But now the goal is est thing the city has to a multiple- “There is so much basic info out competitor, on the other hand, one kers, who then manually post them to move that information faster. listing service—the Real Estate there that can help people make de- result was returned. on a multitude of websites like Board of New York’s database, which cisions on which agents they should “I think every company over the StreetEasy or Trulia. Better method stores information on exclusive list- use, what prices they should ask for next 20 years will transform into a It’s a process that leads to signifi- That’s why the firm is updating its ings from 14,000 registered brokers. and where they should market their tech company,” Mr. Reffkin said, cant lags and also leaves ample room computer programs that pull listings The database has greatly im- product,” said Mr. Reffkin, who has noting that the firm plans on more for error. What’s more, less-scrupu- directly from brokerages to try to get proved with a recent software up- been building all his storage and funding rounds and eventually a na- lous brokers have been known to ad- updates in real time—eliminating grade. But the overall system, of search functions in-house. tionwide expansion. “The decisions vertise the sort of holy- grail apart- the margin for error and cutting the which REBNY is a part, still has a According to him, the key has that we have to make are increasing- ments that turn out to be too good to lag time in information down to zero. long way to go. been not only saving every piece of ly driven by data,and we will be at the be true,only to pull a bait-and-switch “We are working on it with sever- “It has been an incredibly ineffi- information,but making sure it is all forefront of that for real estate.” Ⅲ in an effort to reel in new clients. al partners literally as we speak,” Ms. cient and inconsistent means of LISTEN to a discussion at CrainsNewYork.com/podcasts Landmarks to cash in We congratulate our client Continued from Page 12 several years ago by consulting firm City Planning, spoke about the po- HR&A Advisors.It found that over tential for air rights. a 30-year lifetime, the proposal The administration is mulling the could generate $600 million worth issue.“We are getting all ideas out on of revenue for the nonprofit institu- the table,”said a mayoral spokesman. tions, which would be required to “Any policy has to advance the use the cash for capital repairs and broader public good,and do so in the maintenance first,before applying it context of comprehensive neighbor- to any mission-related programs. on its sale to hood planning.” The issue has been That work would in turn be ex- on the administration’s to-do list pected to generate $800 million in since Mr. de Blasio unveiled his new taxes and $40 billion in eco- housing plan early last year. nomic activity, according to the The Iconplans proposal would study.As an HR&A executive at the operate like this: Once a year, land- time, Mr. Weisbrod worked on that marked nonprofit buildings would economic analysis. But he has not decide how many square feet of their opined on how the sale of develop- air rights they want to put into a ment rights should be reformed. clearinghouse for sale. That entity The idea behind reform in the would be run by Iconplans, which first place is to solve several long- a Hong-Kong based diamond and jewelry retailer would fund itself by charging a 10% standing problems that have faced with over 2,200 points of sale in nearly 500 cities fee on the value of each sale. nonprofit owners of landmarks. For The air rights would be priced ac- one, when the landmarking law was across mainland China and other Asian markets cording to their current market value signed in 1965,these owners were as- at the receiving site, and could only sured they would not be losing out on be used as an option in commercial the total value of their property, be- districts, where the city already al- cause several methods of selling the lows extra building height in ex- unused development rights were cre- change for providing amenities such ated. Yet that has not played out as as public plazas. In that way, the air- the law’s architects had anticipated. rights sale could not create any new According to a 2014 study from density burden for neighborhoods. the NYU Furman Center for Real The group is exploring whether the Estate and Urban Policy, only three concept would work in areas where landmarked properties in the entire developers can build bigger in ex- city managed to file special permits Want more info on our donedeals? Scan the QR Code with your smart phone. change for affordable housing. and sell off any of their air rights be- Iconplans commissioned a study tween 2003 and 2011. Ⅲ

16 | Crain’s New York Business | March 2, 2015 20150302-NEWS--0017-NAT-CCI-CN_-- 2/27/2015 12:13 PM Page 1

REPORT REAL ESTATE

per square foot. Kaufman, who along BARE BONES Shortly after buy- with Fred Leffel spear- 1133 SIXTH AVE. Flatiron property ing the building, the headed a team to tie up firm began upgrading the capital renovations ASKING RENT; TERM: the lobby, security sys- and leasing. Mid-$80s per doubles in price tem and elevators in Indeed, the firm square foot; anticipation of in- eventually doubled ask- 10 years creased interest from ing rents, in some cases SQUARE he Kaufman Organization has sold its 11-story office building potential tenants eye- to $65 per square foot, FEET: 23,000 27 W. 24th St. at in the Flatiron district for $92.5 million—near- ing office space in the before deciding to put TENANT; ly double what the firm paid for it a little more than two years area of 3,000 square the building up for sale REPS: Charles Schwab; Chris ago. In this case, the dramatic increase in the building’s value feet. in the fall of 2014. Corrinet, David Hollander of CBRE was partly the result of $2.5 million in capital improvements “The choices for Woody Heller and Will LANDLORD; REP: Durst Tthat Kaufman put into the property. this type of space were Silverman of Savills Organization; Rocco Romeo, in-house In late 2012, when Kaufman purchased the building, the demand for of- very limited in the Studley were marketing BACKSTORY: The discount broker fice space on side streets was nowhere near what it is today. What’s more, Flatiron corridor,” said Grant the building on behalf of Kaufman. moved in from another Durst building, the building sorely needed a face-lift. Back then, rents hovered around $30 Greenspan,a senior vice president at —joe anuta expanding its footprint 25%. Bloomberg LP hits Third Avenue

Bloomberg LP is expanding onto Third Avenue,sources familiar with the deal say. The prominent financial reporting and media firm is taking about 150,000 square feet at 919 Third Ave. The space is near the company’s main Manhattan headquarters, at 731 Lexington Ave., and expansion space it took several years ago at 120 Park Ave. The lease is the latest of several transactions on Third Avenue in which tenants have flocked to the corridor to capitalize on its relative- ly inexpensive rents. Bloomberg is paying rates in the mid-$50s per square foot. Test-preparation company Kap- lan recently inked its own deal on Third Avenue,taking approximately 80,000 square feet at 750 Third Ave. —daniel geiger Offices up for grabs on Lafayette General Growth Properties will ex- ercise the option that most real estate investors who bought well-placed real estate in recent years have.It will sell out at a major profit. The company has put the office space at 200 Lafayette St., in NoHo, up for sale. With areas like Astor Place, which sits north of the building, now commanding some of the highest rents in midtown south,200 Lafayette St., with 85,000 square feet of fully leased office space, could fetch upward of $120 million. GGP has hired a CBRE Group sales team led by Darcy Stacom and Bill Shanahan to market the property and handle the sale. Ms. Sta- com drew a comparison between 200 Lafayette St.and 837 Washing- ton St. in the meatpacking district. That boutique office property was fully leased by Samsung last year, and then sold for around $200 million to TIAA-CREF at the beginning of 2015. “This is a building for an investor who wants to lock away money and leverage a good return,”Ms.Stacom said. “The leases, while long term, have significant upside potential.” Real estate investor Jared Kush- ner and investment firm CIM purchased 200 Lafayette St.in 2012 for just $50 million. —daniel geiger

March 2, 2015 | Crain’s New York Business | 17 20150302-NEWS--0018-NAT-CCI-CN_-- 2/26/2015 7:31 PM Page 1

IN THE BOROUGHS QUEENS

Alma may have prom- code, such as those for affordable PATIENCE NEEDED: Resident Mavis ised more than the eco- housing, cannot be altered. Astoria development Brooks is reserving nomics of the project Alma, however, has repeatedly judgment. can deliver. They cau- stressed that it will not only go for- Continued from Page 3 on Astoria Houses. tion that the developer ward with Astoria Cove, but it also throated support to both projects. “This particular deal is some- might delay the project plans to break ground this year. “And [the developers] have been gra- thing we would look at as a model,” until Halletts Point For some Astoria Houses resi- cious to meet with us on a regular ba- said Mr. Constantinides. next door opens and dents, that prospect raises unset- sis and listen to what we have to say.” For instance, Alma has agreed to drives up rents in the tling questions. Mavis Brooks, who write local-hiring requirements into area, making the proj- has lived in the same apartment Series of deals the leases of future commercial ten- ect more profitable. Al- there for more than 40 years, won- While hopes run high, fed by ants. And Urban Upbound, a non- ternatively, Alma could ders how the city can crow about a

promises from developers to meet a profit with offices in Astoria, is al- anuta joe sell a big stake in the new development transforming the host of demands from the commu- ready working with the service development. neighborhood while the many nity, actually putting paychecks in workers’ union, 32BJ, to find build- simple as taking on service workers. That happened last year at problems in her complex never residents’hands may prove more dif- ing employees locally. Although recruits for 32BJ do Halletts Point, when the Durst seem to get fixed. ficult. Although a few employment Antoine Jameson is among those not need to be union members be- Organization bought a majority At this point,however,all she can programs have been clearly outlined, residents who express optimism. fore starting, a lengthy apprentice- stake in the property from Lincoln do is wait and see what changes the for other programs it is less certain “It’s a good thing for the neighbor- ship is required to learn the skills for Equities, the firm that took the development—and projects yet to who will get picked for jobs, and hood,” he said. “Everybody is wait- the construction trades. project through the approval come—will bring to the neighbor- when. ing for this.” Last year, 2,100 people citywide process. hood. And come they will. The developer of the 2,500-unit Indeed, in January, more than won admittance to apprenticeships When such a sale occurs,written Steve Haskins, who works at a Halletts Point project made a num- 150 people attended an evening for a number of trades, according to agreements,such as the hiring com- recycled-furniture company called ber of concessions, agreeing to in- meeting at P.S. 85 to find out more the state Department of Labor, mitments outlined in the letter sent Urban Green in a waterfront ware- clude a school and a supermarket, about apprenticeship and training which monitors and accredits the to Mr.Constantinides,in many cas- house, has already seen the signs. before that project was approved in opportunities with the hotel, serv- training programs for everything es become null and void, though “Everything around us is basical- late 2013, but none regarding jobs. ice and building trades. from ironworkers to electricians. agreements baked into the zoning ly already sold,” he said. Ⅲ That is why attention is now fo- “We felt this meeting was impor- Mr. LaBarbera noted that the cused squarely on the 1,700-unit tant,” said Gary LaBarbera, presi- unions can help contractors select lo- Astoria Cove complex, whose de- dent of the New York City Building cal workers from the area once a proj- velopers cut a series of deals late last Trades Council, the union umbrella ect is underway, but despite Alma’s FROM year with the community on af- organization that was one of the intentions in the letter,no agreement AROUND fordable housing and local hiring gathering’s hosts under the name has been reached on local appren- in order to win support. Build Up NYC. “They need to get ticeship programs to recruit Astoria THE CITY These special provisions were information for the pipeline of jobs Houses residents beforehand. detailed in a letter sent in November that will be created at Astoria Cove That means that any resident to local City Council member Cos- and around the city.” hoping to join up and work on As- BRONX ta Constantinides shortly before the toria Cove will have to try to enter project’s approval. Apprenticeship required the unions through the usual chan- City Islanders wendy davis wendy Among other things, the letter At Astoria Cove, those positions nels, and thus will face competition put hopes on hold WAITING GAME: Turning Oliver Place from states that the development team, will be union jobs with good pay and from around the city for one of the dumping ground to park could prove costly. led by Queens-based Alma Realty, benefits. But although Alma has coveted spots, which could be on City Islanders may yet see a planned agreed to a target of filling half the pledged to try to hire 30% of the con- one of many construction sites. pocket park down on Belden Point jobs with people in the local com- struction workforce from the local In other ways as well, many in become a reality. Work on the oft- munity district, with a special focus community district, it will not be as the real estate community feel that postponed project should start this Locals eye greener spring—roughly one year late— future for ‘street’ according to the city’s Department of Parks and Recreation. Officially, the block-long strip of The pocket park will blossom on land called Oliver Place, which runs a 3,800-square-foot plot at the between Decatur and Marion av- very end of the community’s main enues, is an unbuilt city street in the Same team. New address. drag, City Island Avenue, between Norwood section of the Bronx. Un- Tony’s Pier Restaurant and John- officially,it has served for decades as ny’s Reef Restaurant. It will feature a dumping ground for all manner of decorative pavement, a landscaped debris. area, street trees, benches, a bike Now some community members The Flushing Bank Business Banking Team will be moving to a new Manhattan office rack and even decorative trash cans. hope to persuade the city to “de- In addition, a new sea rail will re- map” the street and turn it into a at 99 Park Avenue in March 2015. At Flushing Bank, we’re small enough to know you place the unsightly chain-link park. Leading the charge is long- fence that has long obscured views time resident Shanequa Charles, and large enough to help you. Our team of professionals is ready to provide you with a across the water. But residents re- who so far has collected more than comprehensive Business Banking product* set including: main skeptical. 250 signatures on a petition. “At this point, we really don’t “To have the type of conditions have any confidence in the settled that we’ve had here for over three date given to us,” said Gerard Giac- decades is deplorable,” said Ms. • Deposit products • Owner-occupied commercial co, president of the City Island Charles, who was appointed to • Business term loans real estate mortgages Chamber of Commerce. He notes Community Board 7 by City Coun- that the islanders are particularly cilman Ritchie Torres in September. • Business lines of credit • SBA loans unhappy over their inability to get She added that many local young- real answers from the Parks Depart- sters play at the site, despite the ment about why the project has been “bedbug-infested mattresses,” sy- postponed so many times. “City Is- ringes and other junk piled there. land deserves some more attention,” But converting the property Mary Ellen Bianco Leon Terrano George Bader he said. might not be easy.Dustin Engelken, Senior Vice President Senior Vice President Vice President A Parks Department representa- district manager of CB 7, said city mbianco@flushingbank.com lterrano@flushingbank.com gbader@flushingbank.com tive blamed much of the delay on officials have warned that a conver- Tony’s burning down during Super- sion could be pricey.A portion of the 212.477.9424 x0664 212.477.9424 x0660 212.477.9424 x0661 storm Sandy in October 2012. It site requires a retaining wall that reopened a year later, but it caused could cost upward of $1 million. the park project to come to a halt un- Mr.Torres has allocated $20,000 til it could be confirmed that the to help clean up the area in the short eatery’s owners planned to rebuild. term. Meanwhile, the Department For more information call today or visit “The restaurant operation played a of Transportation said it will repair a www.FlushingBank.com. big role in our design proposal due fence and is working with the to the proximity, so we had to coor- Department of Sanitation to beauti- *All loans, lines of credit and mortgages are subject to credit approval. dinate accordingly,” said the repre- fy the site,but noted there are no cur- Flushing Bank is a registered trademark sentative. rent plans to de-map it. —valentina cordero —wendy davis

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Notice of formation of Trrigr LLC. Siegel/Ringler Family LLC. Arts. of Notice of Formation PDM Fund IV, LLC BANKRUPTCY SALE Articles of organization filed with the Org. filed with Secy. of State of NY Arts. of Org. filed with SSNY 12/9/14. Secretary of State of New York (SSNY) (SSNY) on 09/13/13. Off. loc.: NY Off. Loc.: New York Cnty. SSNY on September 29, 2014. Office located Co. SSNY des. as agent of LLC upon designated as agent of LLC whom at 350 5th Avenue, Suite 731, New whom process may be served. SSNY process may be served. SSNY shall BANKRUPTCY SALE York, NY 10118. SSNY has been shall mail process to c/o Robinson mail process to: c/o Wiggin and designated for service of process. Brog, et al., Attn: Steve R. Graber, Dana LLP, 450 Lexington Ave, Ste RETAIL & OFFICE LEASES AVAILABLE SSNY shall mail copy of any LLC to Esq., 875 3rd Ave, 9th Fl., New York, 3800, New York, NY 10017. Purpose: c/o Trrigr LLC 350 5th Avenue, Suite NY 10022. Purpose: General. all lawful activities. 731, New York, NY 10118. Purpose: Notice of Formation of Rees Holdings Retail Space Office Space any lawful purpose. EP Interiors, LLC, a domestic LLC, 4 Highly filed with the SSNY on 9/16/2014. LLC, Art. of Org. filed with Sec’y of 4P)P 'MBUJSPO%JTUSJDU Desirable DIMES BIG TIME LLC, a domestic Office location: New York County. State (SSNY) on 9/25/14. Office loca- 4R'U 4R'U LLC, filed with the SSNY on SSNY is designated as agent upon tion: NY County. SSNY designated as #JET%VF #JET%VF Sites in 11/26/14. Office location: New York whom process against the LLC may agent of LLC upon whom process NYC and County. SSNY is designated as agent be served. SSNY shall mail process against it may be served. SSNY shall upon whom process against the LLC to The LLC, 140 West End Ave 17G mail copy of process to Chadbourne Long Island may be served. SSNY shall mail NY, NY 10023. Purpose: Staging & Parke, 1301 Ave of the Americas, NY, Retail Space Retail Space and interior design. NY 10019. Purpose: any lawful activities. r4P)P process to The LLC, Attn: Ms. .BOIBTTFU 'MBUJSPO%JTUSJDU Sabrina Desousa, 143 Division St., Notice of Articles of Organization 101 4R'U "QQSPY 4R'U r'MBUJSPO%JTUSJDU NY, NY 10002. General Purposes Solid Air Design LLC, Arts of Org W. 79th St. Holdings LLC filed with #JET%VF"4"1 #JET%VF"4"1 r.BOIBTTFU filed with SSNY on 01/28/15. Off. Loc.: NY Secretary of State (SSNY) on Notice of formation of 817 Second New York County, SSNY designated 12/01/2014. Office location: New York Avenue TC LLC. Arts of Org filed with as agent of LLC upon whom process County. SSNY designated as agent of Emilio Amendola Secy of State of NY (SSNY) on 8/12/14. against it may be served. SSNY shall LLC upon whom process against it Office location: NY Co. SSNY desig- mail a copy of process to: The LLC, may be served. SSNY shall mail rBHSFBMUZQBSUOFSTDPN nated agent upon whom process may 102 W 14th St, 2F, New York, NY process to: O’Hare Parnagian LLP, 82 be served & shall mail copy of process 10011. Purpose: to engage in any Wall Street, Ste 300, NY, NY 10005- against LLC to principal business lawful act. 3686, Att: Christopher P. Parnagian. address:150 W28 St, Ste 403, NY NY 500A E. 87th STREET LLC B. Art. of Purpose: Engage in any lawful activity. FINANCIAL 10001. Purpose:any lawful act. PUBLIC NOTICE Org. filed with the SSNY on Notice of formation of Tres Carnes 01/13/15. Office: New York County. OPPORTUNITIES IN Notice of Formation PDM Fund III, LLC 391 8th Avenue LLC. Arts of Org filed SSNY designated as agent of the NOTICE IS HEREBY GIVEN, PUR- Arts. of Org. filed with SSNY 12/9/14. with Secy of State of NY (SSNY) on MORTGAGE NOTES LLC upon whom process against it SUANT TO LAW, THAT THE NYC Off. Loc.: New York Cnty. SSNY 11/20/14. Office location: NY Co. SSNY may be served. SSNY shall mail DEPARTMENT OF CONSUMER designated as agent of LLC whom designated agent upon whom process • Mortgages For Sale copy of process to the LLC, c/o AFFAIRS WILL HOLD A PUBLIC process may be served. SSNY shall may be served & shall mail copy of Staffard Garson Properties, LLC, 747 • Ranging from $149K - $800K HEARING ON WEDNESDAY, MARCH mail process to: c/o Wiggin and process against LLC to principal Central Park Avenue, Yonkers, NY 11, 2015 AT 2:00 P.M. AT 66 JOHN Dana LLP, 450 Lexington Ave, Ste business address: 150 W28 St, Ste 403, • Low Loan to Value 10704. Purpose: Any lawful purpose. STREET, 11TH FLOOR, ON A PETI- 3800, New York, NY 10017. NY NY 10001. Purpose:any lawful act. • Accruing Default Interest @ 24% TION FOR INNOVATION KITCHENS Purpose: all lawful activities. LLC TO ESTABLISH, MAINTAIN, NOTICE OF FORMATION of GOONSQUAD Notice of Qualification of Call: J. Hughis @ 888-377-3872 AND OPERATE AN UNENCLOSED LLC. Arts. of Org. filed with Secy. of 52EEASUN2014, LLC. Authority filed Barracuda II LLC. Arts. of Org. filed SIDEWALK CAFÉ AT 137 7TH AVE S State NY (SSNY) on DECEMBER 13, with NY Dept. of State: 1/22/15. with Secy. of State of NY (SSNY) on IN THE BOROUGH OF MANHATTAN 2013. Office Location: BX County. Office location: NY County. LLC 01/30/15. Off. loc.: NY Co. SSNY des. FOR A TERM OF TWO YEARS. SSNY designated agent upon whom formed in DE: 11/7/14. NY Sec. of as agent of LLC upon whom process REQUEST FOR COPIES OF THE process may be served and shall mail State designated agent of LLC upon POSITION may be served. SSNY shall mail process REVOCABLE CONSENT AGREE- copy of process against LLC to principal whom process against it may be to c/o Robinson Brog, et al., Attn: Neil MENT MAY BE ADDRESSED TO: business address: 2156 CRUGER served and shall mail process to: c/o AVAILABLE S. Goldstein, 875 3rd Ave, 9th Fl., DEPARTMENT OF CONSUMER AVENUE APT 4G, BRONX, NEW YORK CT Corporation System, 111 8th New York, NY 10022. Purpose: General. Consultant AFFAIRS, ATTN: FOIL OFFICER, 42 10462. Purpose: Any lawful act. Ave., NY, NY 10011, regd. agent PA Consulting Group, Inc. - New BROADWAY, NEW YORK, NY 10004. upon whom process may be served. York, NY Name of LLC: Larry Chicane Notice of Formation of JUJA DE addr. of LLC: 1209 Orange St., Provide rsrch & analysis w/in energy Industries LLC. Arts. of Org. filed SOUTHAMPTON LLC. Arts. of Org. Wilmington, DE 19801. Cert. of sector. F/T. Reqs Bach’s degr in with NY Dept. of State: 2/2/15. filed with Secy. of State of NY (SSNY) Form. filed with DE Sec. of State, Econ, Bus Admin or rel tech fld & 2 Office loc.: NY Co. Sec. of State on 01/22/15. Office location: NY 401 Federal St., Dover, DE 19901. yrs exp in job offered or in prfrm’g TELECOMMUNICATIONS designated agent of LLC upon County. Princ. office of LLC: 109 Purpose: all lawful purposes. analysis, bus strategy & ops whom process against it may be Greene St., Apt. 5B, NY, NY 10012. consult’g w/in enrgy ind. 1 yr of served and shall mail process to: SSNY designated as agent of LLC Notice of Qualification of EAST stated exp mst incl the follw’g: Business Filings Inc., 187 Wolf Rd., upon whom process against it may MEADOW CAPITAL FUND, LP. Appl. Condct’g analysis & generat’g Ste. 101, Albany, NY 12205, regd. be served. SSNY shall mail process for Auth. filed with Secy. of State of NY insight w/in elec utility orgs & mrkts 33 East 33rd Street agt. upon whom process may be to Jonathan J. Russo, Esq., Pillsbury (SSNY) on 02/19/15. Office location: by utiliz’g quant & qual data; Elec New York, NY 10016 served. Purpose: any lawful act. Winthrop Shaw Pittman LLP, 1540 NY County. LP formed in Delaware (DE) utility incl’g generation, transmission, Broadway, NY, NY 10036. Purpose: on 02/03/15. Princ. office of LP: 30 W. 212-532-7400 61st St., #19A, NY, NY 10023. SSNY distribution, infrastructure, systs, Notice of Qualification of Filterfresh Any lawful activity. processes, regulation & mrkts; [email protected] designated as agent of LP upon whom Coffee Service, LLC. Authority filed process against it may be served. SSNY Build’g Excel mdls to prfrm financl Notice of Qualification of KGS-ALPHA EMERGENCY with NY Dept. of State on 12/9/2014. shall mail process to the Partnership & regulatory analysis, resource FINANCIAL SERVICES, LLC. Appl. for COMMUNICATIONS Office location: NY County. Princ. bus. at the princ. office of the LP. The regd. allocation, KPI forecast’g & strategic Auth. filed with Secy. of State of NY SYSTEMS addr.: 1101 Market St., Philadelphia, agent of the company upon whom bus plan’g; Proj mgmt, incl’g dvlpmt (SSNY) on 11/10/14. Office location: PA 19107. LLC formed in DE on and at which process against the of bus cases, proj charters, & SPECIALISTS NY County. LLC formed in Delaware 9/10/1984. NY Sec. of State designated company can be served is Stefan -implmntation of plans & operat’g • FREE PICKUP & DELIVERY (DE) on 10/17/14. SSNY designated agent of LLC upon whom process Brundobler, 30 W. 61st St., #19A, NY, mdls; Present’g find’gs to effectively • 48 HOUR TURNAROUND as agent of LLC upon whom process against it may be served and shall NY 10023. Name and addr. of each frame bus & regulatory challenges in ON REPAIRS against it may be served. SSNY shall mail process to: c/o CT Corporation general partner are available from spprt of sr-lvl decision-mak’g; Wrk’g mail process to c/o Corporation • FREE ENGRAVING System, 111 8th Ave., NY, NY 10011, SSNY. DE addr. of LP: 2711 w/ analytical or scientific sftwre Service Co., 80 State St., Albany, NY • SHORT & LONG TERM regd. agent upon whom process may Centerville Rd., Ste. 400, Wilmington, incl’g Palisade @Risk & proj mgmt 12207-2543. DE addr. of LLC: 2711 RENTALS be served. DE addr. of LLC: 1209 DE 19808. Cert. of LP filed with sftwre incl’g Microsoft Project. Exp Centerville Rd., Ste. 400, Wilmington, Orange St., Wilmington, DE 19801. Secy. of State of the State f DE, 401 may be gained concurrently. DE 19808. Cert. of Form. filed with Cert. of Form. filed with DE Sec. of Federal St., Dover, DE 19901. Resumes: M. Bettencourt, PA Jeffrey W. Bullock, Secy. of State, State, 401 Federal St., Dover, DE Purpose: Any lawful activity. Consulting Group, Inc., 10 Canal 19901. Purpose: all lawful purposes. 401 Federal St., Dover, DE 19901. Park, 4th Fl, Cambridge, MA 02141. Purpose: Any lawful activity. JobID: NEWMZ. Qualification of Blackstone Tactical Notice of Qualification of CORE Opportunities Fund (KG Co-Invest) L.P. AMSTERDAM LLC. Appl. for Auth. Notice of Qualification of Avalon Authority filed with the Sect of State filed with Secy. of State of NY (SSNY) Columbus Circle, LLC. Authority filed of NY (SSNY) on 1/20/15. Office Loc: on 01/22/15. Office location: NY with NY Dept. of State on 1/20/15. NY County. LP formed in Cayman County. LLC formed in Delaware (DE) Office location: NY County. Princ. bus. Islands on 12/2/14. SSNY has been PUBLIC & LEGAL NOTICES on 01/14/15. Princ. office of LLC: 60 addr.: 671 N. Glebe Rd., Ste. 800, designated as agent of LP upon Columbus Circle, NY, NY 10023. Arlington, VA 22203. LLC formed in whom process against it may be Notice of Qual. of NCKID Driggs, LLC, Notice of Qual. of RCM Dash 3 Holdco SSNY designated as agent of LLC DE on 1/16/15. NY Sec. of State served and shall mail process to: 200 Auth. filed Sec’y of State (SSNY) on LLC, Auth. filed Sec’y of State (SSNY) upon whom process against it may designated agent of LLC upon whom Bellevue Pkwy, Ste 210, Wilmington, 6/24/14. Office loc: NY County. LLC on 5/14/14. Office loc: NY County. be served. SSNY shall mail process process against it may be served 19809. Cayman Islands address of org. in DE 6/19/14. SSNY desig. as LLC org. in DE 5/13/14. SSNY desig. to c/o Corporation Service Co., 80 and shall mail process to: c/o CT LP: 190 Elgin Avenue, George Town, agent of LLC upon whom proc. against as agent of LLC upon whom proc. State St., Albany, NY 12207-2543. Corporation System, 111 8th Ave., NY, Grand Cayman, KY1-9005, Cayman it may be served. SSNY shall mail copy against it may be served. SSNY shall DE addr. of LLC: c/o CSC, 2711 NY 10011, regd. agent upon whom Islands. Name/addr of genl ptr avail of proc. to Siegel & Reiner, Att: Irwin mail copy of proc. to 110 Greene St., Centerville Rd., Ste. 400, Wilmington, process may be served. DE addr. of from SSNY. Cert of LP filed with Siegel, 900 Third Ave., NY, NY 10022. Ste. 1102, NY, NY 10012. DE office DE 19808. Cert. of Form. filed with LLC: c/o The Corporation Trust Co., Registrar of Exempted Limited DE office addr.: 160 Greentree Dr., Ste. addr.: CSC, 2711 Centerville Rd., Secy. of State of DE, John G. 1209 Orange St., Wilmington, DE Partnerships of the Cayman Islands, 101, Dover, DE 19904. Cert. of Form. Wilmington, DE 19808. Cert. of Form. on Townsend Bldg., Federal and Duke 19801. Cert. of Form. filed with DE Sec. 133 Elgin Ave, George Town, Grand on file: SSDE, Townsend Bldg., Dover, file: SSDE, Townsend Bldg., Dover, of York Sts., Dover, DE 19901. of State, 401 Federal St., Dover, DE Cayman, KY1-9000, Cayman Islands. DE 19901. Purp: any lawful activities. DE 19901. Purp: any lawful activities. Purpose: Any lawful activity. 19901. Purpose: all lawful purposes. Purpose: any lawful activity.

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Notice of Qual. of Pura Vida SPV I, SAC427 111414 LLC. Appl. for Auth. Notice of Formation of Meridion MEADOWS SERVICE GROUP LLC. Notice of Formation of FOREST HILLS LLC, Auth. filed Sec’y of State (SSNY) filed with Secy. of State of NY (SSNY) Consulting LLP filed with the Secretary Art. of Org. filed with the SSNY on EYE, LLC Arts. of Org. filed with Secy. on 5/12/14. Office loc: NY County. LLC on 01/14/15. Off. loc: New York Co. of State of New York (SSNY) on 01/21/15. Office: New York County. of State of NY (SSNY) on 02/02/15. org. in DE 5/9/14. SSNY desig. as agent Orig. juris: DE. SSNY des. as agent 1/14/2015. Office location: New York SSNY designated as agent of the Office location: NY County. SSNY of LLC upon whom proc. against it may of LLC upon whom process may be County. SSNY designated agent LLC upon whom process against it designated as agent of LLC upon be served. SSNY shall mail copy of proc. served. SSNY shall mail process to upon whom process may be served may be served. SSNY shall mail copy whom process against it may be to Att: Efrem Karmen, 888 Seventh c/o Robinson Brog, et al., Attn: Roger to 7014 13 Ave., #202, Brooklyn, NY, of process to the LLC, c/o Marissa served. SSNY shall mail process to the Ave., 6th Fl., NY, NY 10106. DE office A. Raimond, 875 3rd Ave, 9th Fl., New 11228. Purpose: any lawful purpose. Allen, 201 West 89th Street, New York, LLC, 550 Park Ave., NY, NY 10065. addr.: CSC, 2711 Centerville Rd., York, NY 10022. Purpose: General. NY 10024. Purpose: Any lawful purpose. Purpose: Any lawful activity. Wilmington, DE 19808. Cert. of Form. Magna Partners II, LLC. Appl. for on file: SSDE, Townsend Bldg., Dover, Notice of Formation of DAVIDJAMIE Auth. filed with Secy. of State of NY Manlam, LLC. Arts. of Org. filed with NOTICE OF FORMATION OF DE 19901. Purp: any lawful activities. 450 W. 17TH STREET ASSOCIATES, (SSNY) on 01/28/15. Off. loc.: NY Co. Secy. of State of NY (SSNY) on 02/13/15. PLETHORA LLC: Articles of Organi- L.L.C. Arts. of Org. filed with Secy. of Orig. juris.: DE. SSNY des. as agent Off. loc.: NY Co. SSNY des. as agent zation filed with the Secretary of State State of NY (SSNY) on 01/21/15. Office of LLC upon whom process may be of LLC upon whom process may be of NY (SSNY) on 1/13/15 . Office Notice of Qualification of Hudson + location: NY County. SSNY designated served. SSNY shall mail process to served. SSNY shall mail process to the location: New York County. SSNY has East Management, LLC. Authority as agent of LLC upon whom process c/o Robinson Brog, et al., Attn: David LLC c/o Manhattan Laminates, Attn: been designated as agent upon whom filed with NY Dept. of State on against it may be served. SSNY shall E. Danovitch, 875 3rd Ave., 9th Fl., Beth Thornton, 624 W 52nd St., New process against it may be served. 2/18/15. Office location: NY County. mail process to Corporation Service New York, NY 10022. Purpose: General. York, NY 10019. Purpose: General. The Post Office address to which the LLC formed in DE on 2/2/15. NY Co., 80 State St., Albany, NY 12207- SSNY shall mail a copy of any Sec. of State designated agent of CLASSICALLY BEAUTIFUL, LLC, a 2543. Purpose: Any lawful activity. Notice of Formation of DIYA REAL process against the LLC served upon LLC upon whom process against it domestic LLC, filed with the SSNY on HOLDINGS, LLC Arts. of Org. filed him/her is: US Corporation Agents, may be served and shall mail 10/17/14. Office location: New York HOV SHORT FILM, LLC, Arts. of Org. with Secy. of State of NY (SSNY) on INC. 7014 13th Avenue, Suite 202 - process to the principal business County. SSNY is designated as agent filed with the SSNY on 10/20/2014. 02/11/15. Office location: NY County. Brooklyn, NY 11228. The principal address: 767 Fifth Ave., 12th Fl., NY, upon whom process against the LLC Office loc: NY County. SSNY has SSNY designated as agent of LLC business address of the LLC is: 15 NY 10153, Attn: Joseph Kusnan. DE may be served. SSNY shall mail been designated as agent upon upon whom process against it may William St. #32D - New York 10005. address of LLC: 1209 Orange St., process to c/o Alan Markle WMSHB, whom process against the LLC may be served. SSNY shall mail process Purpose: any lawful act or activity. Wilmington, DE 19801. DE Sec. of be served. SSNY shall mail process to Corporation Service Co., 80 State 101 Larkspur Landing Cir., Ste. 200, State, 401 Federal St., Dover, DE St., Albany, NY 12207-2543. Larkspur, CA 94939. General Purposes. to: 15 Broad St., #930, NY, NY Notice of Formation of GOLDEN 19901. Purpose: all lawful purposes. Purpose: Any lawful activity. 10005. Reg. Agent: David Elfenbein, Notice of Formation of St. Nicholas GUN, LLC. Arts. of Org. filed with 15 Broad St., #930, NY, NY 10005. Secy. of State of NY (SSNY) on Notice of Formation of Francmen Lemor LLC. Arts. of Org. filed with Secy. Purpose: Any Lawful Purpose. 01/20/15. Office location: NY County. Notice of Qual. of Purves Street Jamaica Ventures LLC. Arts. of Org. of State of NY (SSNY) on 2/3/15. Office SSNY designated as agent of LLC Development LLC, Auth. filed Sec’y filed with Secy. of State of NY (SSNY) location: NY County. SSNY designated NOTICE OF FORMATION OF Bernie upon whom process against it may of State (SSNY) on 8/19/14. Office loc: on 1/13/15. Office location: NY as agent of LLC upon whom process Young Entertainment Enterprises, be served. SSNY shall mail process NY County. LLC org. in DE 7/28/14. County. SSNY designated as agent against it may be served. SSNY shall LLC. Articles of Organization filed to c/o BFFA, 1430 Broadway, Ste. SSNY desig. as agent of LLC upon whom of LLC upon whom process against mail process to: 167 W. 145th St., NY, with the Secretary of State of NY 1208, NY, NY 10018. Purpose: Any proc. against it may be served. SSNY it may be served. SSNY shall mail NY 10039. Purpose: any lawful activity. (SSNY) on November 11, 2014. lawful activity. shall mail copy of proc. to NRAI, 111 process to: c/o The LLC, 1412 Eighth Ave., NY, NY 10011, the Reg. Office location: NEW YORK County. Argo 613, LLC. Arts. of Org. filed with SSNY has been designated as agent Broadway, 3rd Fl., NY, NY 10018. Secy. of State of NY (SSNY) on 01/20/15. Notice of formation of Assure Global Agt. upon whom proc. may be served. Purpose: any lawful activity. DE office addr.: 160 Greentree Dr., Ste. upon whom process against it may Off. loc.: NY Co. SSNY des. as agent LLC. Arts of Org filed with Secy of be served. The Post Office address of LLC upon whom process may be State of NY (SSNY) on 12/11/14. 101, Dover, DE 19904. Cert. of Form. Notice of Formation of BFV to which the SSNY shall mail a copy served. SSNY shall mail process to Office location:NY Co. SSNY desig- on file: SSDE, Townsend Bldg., Dover, Management LLC. Arts. of Org. filed of any process against the LLC c/o Robinson Brog, et al., Attn: Neil nated agent upon whom process may DE 19901. Purp: any lawful activities. with NY Dept. of State on 11/17/14. served upon him/her is: 45 West S. Goldstein, 875 3rd Ave, 9th Fl., be served & shall mail copy of process Office location: NY County. Sec. of 60th Street, #10D, New York, NY New York, NY 10022. Purpose: General. against LLC to principal business 10023. The principal business State designated agent of LLC upon address:150 W28 St, Ste 403, NY NY NOTICE OF FORMATION OF HEADWIN whom process against it may be INTERNATIONAL LOGISTICS LLC. address of the LLC is: 45 West 60th NOTICE OF FORMATION OF CNY 10001. Purpose:any lawful act. Street, #10D, New York, NY 10023. served and shall mail process to the Construction 701 LLC. Arts of Org filed Application for Authority filed with principal business address: 254 W. 54th the Secretary of State of New York Purpose: any lawful act or activity. with Secy of State of NY (SSNY 6/17/13). Notice of Formation of JSC Interiors, St., 10th Fl., NY, NY 10019, Attn: Tom Office Location NY County. SSNY LLC. Arts. of Org. filed with NY Dept. (SSNY) on 11/13/2014. Office location: Viertel. Purpose: any lawful activity. NEW YORK County. LLC formed in designated agent upon whom process of State on 11/7/14. Office location: Notice of Formation of Pasha TEXAS on 07/02/2014. SSNY has may be served and shall mail process NY County. Princ. bus. addr.: 575 Funding, LLC. Art. of Org. filed with NOTICE OF FORMATION OF LIMITED been designated as an agent upon against LLC to principal business Lexington Ave., 4th Fl., NY, NY 10022. Secy. of State of NY(SSNY) on LIABILITY COMPANY. 14 LEROY whom process against it may be address: 214 West 39th Street, NY, Sec. of State designated agent of LLC December 8, 2014. Office location: STREET DARLING LLC Articles of served. The Post Office address to NY 10018. Purpose: Any lawful act. upon whom process against it may New York County, SSNY designated Organization were filed with the which the SSNY shall mail a copy of be served and shall mail process to: as agent of LLC upon whom process Secretary of State of New York (SSNY) any process against the LLC served 137 WEST 25 STREET RM LLC, Arts. c/o CT Corporation System, 111 8th against it may be served. SSNY shall 1/14/15. Office location: NY County. upon him/her is: 1271 AVENUE OF of Org. filed with the SSNY on 11/19/2014. Ave., NY, NY 10011, regd. agent mail copy of process to: 401 Broadway SSNY has been designated as agent THE AMERICAS, C/O RAYMOND Office loc: NY County. SSNY has upon whom process may be served. Ste 1712, New York, New York of the LLC upon whom process COUNTER, 43RD FLOOR, NEW been designated as agent upon whom Purpose: all lawful purposes. 10013. Purpose: any lawful activity. against it may be served and shall YORK, NY 10020. The principal process against the LLC may be served. mail a copy of process to 14 LEROY SSNY shall mail process to: Glow Art business address of the LLC is: 756 STREET DARLING LLC, 708 Third Notice of Formation of MIRACLE ON PORT AMERICA PLACE, SUITE 815, Notice of Formation of PBE LLC Arts. LLC, 28 West 25 St., Fl. 12, NY, NY 34, LLC Arts. of Org. filed with Secy. Avenue, 20th fl., New York, New 10010. Purpose: Any Lawful Purpose. GRAPEVINE, TX 76051. TEXAS of Org. filed with Secy. of State of NY York, 10017, attention Rubin Ferziger. of State of NY (SSNY) on 10/09/14. address of LLC is: 756 PORT (SSNY) on 12/15/14. Office location: Office location: NY County. SSNY Purpose: for any lawful purpose. Notice of Qualification of Mavis AMERICA PLACE, SUITE 815, NY County. SSNY designated as agent designated as agent of LLC upon whom Skarloey LLC. Authority filed with NY GRAPEVINE, TX 76051. Certificate of LLC upon whom process against it process against it may be served. Notice of Formation of BEJO & LAPPAS, Dept. of State on 2/4/15. Office loca- of LLC filed with Secretary of State may be served. SSNY shall mail process SSNY shall mail process to Troutman LLC. Arts. of Org. filed with Secy. of tion: NY County. LLC formed in DE of TEXAS located at: 1019 Brazos, to c/o Yiannes Einhorn, 316 E. 22nd Sanders LLP, Attn: Brett R. Baker, State of NY (SSNY) on 06/27/14. on 11/5/14. NY Sec. of State designated Austin, TX 78701. Purpose: any St., 7th Fl., NY, NY 10010. Purpose: Esq., 405 Lexington Ave., NY, NY Office location: NY County. SSNY agent of LLC upon whom process lawful act or activity. Any lawful activity. 10174. Purpose: Any lawful activity. designated as agent of LLC upon against it may be served and shall whom process against it may be mail process to: 60 Warren St., #6, served. SSNY shall mail process to NY, NY 10007, principal business NOTICE OF FORMATION OF Advance Corporation Service Co., 80 State St., address. DE address of LLC: 1209 Global Health, LLC. Articles of Organ- Albany, NY 12207, regd. agent upon Orange St., Wilmington, DE 19801. ization filed with the Secretary of State whom and at which process may be Cert. of Form. filed with DE Sec. of of NY (SSNY) on December 4, 2014. Do You Want To Get served. Purpose: Any lawful activity. State, 401 Federal St., Dover, DE Principal business address is 140 7th 19901. Purpose: all lawful purposes. Ave., NY, NY, 10011. SSNY has been Notice of Qualification of CRISPIN designated as agent upon whom INFERENTIAL PARTNERS, LP. Appl. Notice of Qualification of EAST process against it may be served. Your Company In Front Of for Auth. filed with Secy. of State of NY MEADOW CAPITAL GP, LLC. Purpose: any lawful act or activity. (SSNY) on 02/13/15. Office location: Appl. for Auth. filed with Secy. of NY County. LP formed in Delaware State of NY (SSNY) on 02/19/15. Notice of Qualification of CORTEC New York City’s Influential (DE) on 01/23/15. Princ. office of LP: Office location: NY County. LLC MANAGEMENT VI, LLC Appl. for Auth. 200 E. 79th St., 11th Fl., NY, NY formed in Delaware (DE) on 11/10/14. filed with Secy. of State of NY (SSNY) 10075. SSNY designated as agent of Princ. office of LLC: 30 W. 61st St., on 02/03/15. Office location: NY Business Professionals? LP upon whom process against it may #19A, NY, NY 10023. SSNY designated County. LLC formed in Delaware (DE) be served. SSNY shall mail process as agent of LLC upon whom process on 01/26/15. Princ. office of LLC: 200 to the Partnership at the princ. office against it may be served. SSNY shall Park Ave., 20th Fl., NY, NY 10166. of the LP. The regd. agent of the mail process to the LLC at the princ. SSNY designated as agent of LLC upon company upon whom and at which office of the LLC. The regd. agent of whom process against it may be served. process against the company can be the company upon whom and at SSNY shall mail process to c/o Cortec Contact Joanne Barbieri at served is Michael T. Cahill, 200 E. 79th which process against the company Group Management Services, LLC, St., 11th Fl., NY, NY 10075. Name can be served is Stefan Brundobler, Attn: David L. Schnadig at the princ. and addr. of each general partner are 30 W. 61st St., #19A, NY, NY 10023. office of the LLC. DE addr. of LLC: 212-210-0189 for classified available from SSNY. DE addr. of LP: DE addr. of LLC: c/o Corporation 2711 Centerville Rd., Ste. 400, 2711 Centerville Rd., Ste. 400, Service Co., 2711 Centerville Rd., Ste. Wilmington, DE 19808. Cert. of Form. advertising opportunities. Wilmington, DE 19808. Cert. of LP 400, Wilmington, DE 19808. Cert. of filed with Secy. of State of the State of filed with Secy. of State of the State Form. filed with Secy. of State of the DE, 820 N. French St., 4th Fl., of DE, 401 Federal St., Dover, DE State of DE, 401 Federal St., Dover, Wilmington, DE 19801. Purpose: 19901. Purpose: Any lawful activity. DE 19901. Purpose: Any lawful activity. General partner of investment fund.

March 2, 2015 | Crain’s New York Business | 21 20150302-NEWS--0022-NAT-CCI-CN_-- 2/27/2015 6:31 PM Page 1

firm with a larger geographic foot- operated a portfolio of beauty and Waiting to sell brings rewards print and greater technology plat- fashion sites for women, grew form,” he said. through the recession, but the Ubiqus, which had annual rev- brothers weren’t ready to market it. Continued from Page 3 ing prices, on average. Kevin Rees sold his profitable enue of $75 million before the acqui- “We knew if we drove revenue and than at any other time since online “There is a lot of cash from 35-employee translation-services sition, was the only firm that met users,we would have more options,” business-selling marketplace Biz private-equity funds and strategic company, Manhattan-based Lan- these requirements, he said. Ubiqus said Ari, the CEO of StyleCaster at BuySell.com began tracking the buyers for buying companies, but a guageWorks, to France-based tran- has U.S. offices in lower Manhattan the time it was acquired. data in 2007. low supply, so valuations are very scription and translation firm and on the West Coast. When women’s lifestyle media high,” said Sylvie Gadant, a partner Ubiqus in December. He consid- For its part, Ubiqus was im- company SheKnows Media, in Asking prices up and transaction advisory services ered selling as early as 2007, but so pressed that LanguageWorks had Scottsdale, Ariz., acquired the prof- Nationwide, almost 7,500 trans- practice leader at accounting and few transactions were occurring weathered the recession well, said itable firm, StyleCaster had raised a actions were reported in 2014, up consulting firm Citrin Cooperman. during the recession that he waited Joanne Bove, Ubiqus’ CEO of U.S. little under $8 million in equity in- nearly 6% over 2013. In the New A lower-middle-market compa- a few years. operations. “They had maintained a vestments and had annual revenue York City area, the number of deals ny valued at four- to six-times earn- persistent focus on their clients’ of more than $10 million. “The went down a bit,to 455 in 2014 from ings before interest, taxes, deprecia- ‘Back to buying’ needs and the quality of their servic- economy was on the rebound and 522 in 2013. However, those who tion and amortization a few years In 2011, as the economy stabi- es,and had a strong,well-established companies were back to buying,” did sell were more aggressive: The ago could reach a seven- to nine- lized, Mr. Rees began talking with management team,” she said. said Mr. Goldberg. “We benefited median asking price in the fourth times multiple today, Ms. Gadant potential strategic buyers who could Brothers David and Ari Gold- from that.” Ⅲ quarter of 2014 hit $280,000, up said. “Now it can get eight and nine earn the trust and respect of his man- berg sold their company,StyleCast- from $265,000 in the same quarter times its valuation. It’s crazy, but it’s agement team. “We needed to be- er Media Group, in August 2014. LISTEN to a discussion at CrainsNewYork.com/podcasts of 2013.Sellers got 92% of their ask- great for business owners.” come part of a better-capitalized The company, which owned and

“This is happening across the that the project could add 60,000 or Council declaring independence city,” he said.“This is being felt by a more units of market-rate housing. lot of different members. This is an The administration also moved to aggressive administration for devel- add affordable housing to an already Continued from Page 3 In a mid-February radio inter- er’s silence on East New York as op- opment plans.” controversial residential tower from the Bloomberg administration view after a speech outlining her position.Her spokesman said she has Manhattan Councilwoman Mar- planned for Brooklyn Bridge Park, and tweaked by Mr. de Blasio. Yet own agenda, Council Speaker yet to take a position,preferring to let garet Chin is in the midst of her own raising hackles among local leaders. council members and top City Hall Melissa Mark-Viverito said Mr. de the local council members take the battle over a proposed 40-story tow- Experts say tension between aides admit the process was messy. Blasio’s housing plan would be far lead. Councilman Rafael Espinal, er just outside the historic South City Hall and the council, especial- A more telling test of the mayor’s from simple: “This is going to be a who is friendly with developers, is Street Seaport district.She and Man- ly over land use, is natural. ability to deliver on his housing tough conversation,and I think that currently engaged in talks with com- hattan Borough President Gale “If you’re a council member, you promises will be in the batch of re- the mayor is fully aware that this is munity members about the rezoning, Brewer object to Texas-based may applaud the mayor’s commit- zonings he identified in early Feb- not going to be an easy conversation, as is Councilwoman Inez Barron. Howard Hughes Corp.’s plan,calling ment to affordable housing,” said ruary: in Brooklyn’s East New York, not only in East Harlem and the Growing tension between the it out of character with the area. But Kenneth Fisher,a lobbyist and land- Manhattan’s East Harlem, Queens’ South Bronx,but every other neigh- council and the mayor spilled into Mr.Kimball says the tower cannot be use attorney who served on the Long Island City and Flushing borhood where it’s proposed.” view in January, when Brooklyn moved,and the administration sees it council from 1991 through 2001. West, the Bronx’s Jerome Avenue First up is East New York, where Councilman Carlos Menchaca and as a way to fund affordable housing, a “Well,the mayor says in order to ac- corridor, Staten Island’s Bay Street the Department of City Planning the city’s Economic Development new school and an upgrade of the sea- complish that in your district, it corridor and nine other neighbor- has released its proposal to add a Corp.clashed over the South Brook- port. “It’s not going to happen under comes with a dose of market-rate hoods yet to be named. staggering 7,250 units of housing to lyn Marine Terminal.The city want- my watch,” Ms. Chin vowed. housing to pay for it. Now a council the low-slung neighborhood by ed the council to approve a 50-year member gets confronted with a All eyes on housing agenda 2030. Some community members master lease, but Mr. Menchaca A flashpoint in Queens more difficult choice.” Many council members say they are already grumbling about the wanted more local control over the Another flashpoint is emerging Several legislative battles could are waiting to see how the adminis- prospect of gentrification. site.After accusing Mr.Menchaca of in Queens, where Mr. de Blasio also come to a head this year. There tration’s housing agenda will affect Developers eyeing East New a power grab, the city put the project wants to build 11,250 units of af- is strong support in the council for their districts.Some are fighting the York have gripes of their own.Some on hold. The dispute played out on fordable housing over Sunnyside bills banning police chokeholds and renewal of the 421a state tax break claim that Ms. Mark-Viverito is Facebook, where Mr. Menchaca and Yards. Councilman Jimmy Van limiting trash processing, but City for developers—a program that holding up the land-use process EDC President Kyle Kimball Bramer was told in advance of the Hall opposes both measures.Mean- many assume will be a key compo- over concerns about how much sparred over land-use procedures. proposal and didn’t endorse it, but while, council members have lined nent in the mayor’s plan. (Mr. de market-rate housing the adminis- The brawl cost the councilman the mayor announced it anyway in up against the mayor’s bill to end the Blasio has not revealed what tration wants to build there. some political capital,and his Brook- his State of the City speech. horse-carriage industry. changes he wants.) And some are “The mayor can’t get the speaker lyn colleagues ousted him as co-chair Mr. Van Bramer has been open- A spokesman for Mr. de Blasio gearing up to oppose development to sign off on the East New York re- of the borough’s council delegation. ly skeptical to the point of opposi- said, “After eight years serving as a projects that Mr. de Blasio is count- zoning,” said one real estate insider. Mr. Menchaca has since resumed tion. “I just think there’s a lot of councilman,the mayor has a lot of re- ing on to help reach his goal of It is possible, though, that devel- talks with Mr.Kimball,but expressed questions,”he said.The councilman spect for the council’s important role 80,000 new affordable apartments. opers are misinterpreting the speak- concerns about future deals. last week warned his constituents as a strong, independent body.” Ⅲ

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Notice of Formation of Ruby Red Notice of formation of Assure Funding PERFECT 13 REALTY LLC, a domestic Notice of Formation of LOPEZ & WMF 35E63 LLC, a domestic LLC, Slippers LLC, Art. of Org. filed with LLC. Arts of Org filed with Secy of LLC, filed with the SSNY on 4/24/1998. WARDLE LLP Cert. of Reg. filed with filed with the SSNY on 1/16/15. Office Sec’y of State (SSNY) on 10/3/14. State of NY (SSNY) on 12/11/14. Office Office location: New York County. Secy. of State of NY (SSNY) on 01/13/15. location: New York County. SSNY is Office location: NY County. SSNY location: NY Co. SSNY designated SSNY is designated as agent upon Office location: NY County. SSNY designated as agent upon whom designated as agent of LLC upon agent upon whom process may be whom process against the LLC may designated as agent of LLP upon whom process against the LLC may be served. whom process against it may be served. served & shall mail copy of process be served. SSNY shall mail process process against it may be served. SSNY shall mail process to Maidman SSNY shall mail copy of process to against LLC to principal business to The LLC, Abdul Rehman, 125 SSNY shall mail process to Corporation and Mittelman, LLP, 70 E. 55th St., Dentons US LLP, Att: Kristina Beirne, address:150 W28 St, Ste 403, NY NY Douglas Rd., Staten Island, NY Service Co., 80 State St., Albany, NY NY, NY 10022. General Purposes. 1221 Ave of the Americas, NY, NY 10001. Purpose:any lawful act. 10304. General Purposes. 12207-2543. Purpose: Law. 10020. Purpose: any lawful activities. Notice of Formation of Royal Grey, Notice of Formation of MANGO Notice of Formation of KASURA LLC. Arts of Org. filed with the Sec. of Notice of Formation of LEGUCA LLC. ZOE HICKS MARRIAGE AND FAMILY TANGO LLC. Arts. of Org. filed with PARTNERS I LLC. Arts. of Org. filed State of NY (SSNY) on 12/10/14. Arts. of Org. filed with Secy. of State THERAPY, PLLC, a domestic PLLC, Secy. of State of NY (SSNY) on with Secy. of State of NY (SSNY) on Office location: NY County. Principal of NY (SSNY) on 12/26/14, becoming Arts. of Org. filed with the SSNY on 01/12/15. Office location: NY County. 01/09/15. Office location: NY County. business address: 250 E. 53 St, Apt. effective on 01/02/15. Office location: 9/25/14. Office location: New York Princ. office of LLC: c/o Rosenberg & SSNY designated as agent of LLC 1801, New York, NY 10022. United NY County. SSNY designated as County. SSNY is designated as agent Estis, P.C., 733 Third Ave., NY, NY upon whom process against it may States Corporation Agents, Inc. desig- agent of LLC upon whom process upon whom process against the PLLC 10017. SSNY designated as agent of be served. SSNY shall mail process nated as agent for service of process. against it may be served. SSNY shall may be served. SSNY shall mail LLC upon whom process against it may to Seward & Kissel LLP, Attn: David SSNY shall mail process to: c/o United mail process to c/o Zach Feuer, 548 process to: The PLLC, 521 S. Marks be served. SSNY shall mail process E. Stutzman, One Battery Park Plaza, States Corporation Agents, Inc. at W. 22nd St., NY, NY 10011. Purpose: Ave., Apt. 4E, Brooklyn, NY 11238. to the LLC at the addr. of its princ. NY, NY 10004. Purpose: Any lawful 7014 13th Ave. Ste. 202, Brooklyn, NY Any lawful activity. Purpose: Marriage and Family Therapy. office. Purpose: Any lawful activity. activity. 11228. Purpose: any lawful activity.

22 | Crain’s New York Business | March 2, 2015 20150302-NEWS--0023-NAT-CCI-CN_-- 2/27/2015 6:26 PM Page 1

JPMorgan’s splitting headache Muddle in the middle

Continued from Page 1 whole and a pickup in corporation Investors who think Mr. Dimon Continued from Page 1 The consumer buying these or trades. Higher capital require- taxes as a whole,” said George and his team are up to this challeng- professionals who can’t yet afford brands is part of a shrinking middle ments would put further pressure on Sweeting, deputy director at the In- ing task favor keeping the company true luxury—and a spate of middle- class whose wages nationally have shareholder returns that have al- dependent Budget Office. together. Those who don’t are the market retail closures in 2014. And stagnated. Median household in- ready been crunched by about a The combination of regulatory ones most interested in analysts’ the hatchet is expected to continue come in the U.S. was $51,939 in quarter since the financial crisis. As pressure, restless shareholders and a breakup scenarios. falling. 2013—adjusted for inflation, that’s a result, some analysts are agitating seemingly more accommodating One such outline would hive off “Being average in the middle is 8% lower than in 2007 and 9% less for JPMorgan to shrink so it can city tax regime could ease any path the JPMorgan investment bank death,” said Kevin Mullaney, presi- than the 1999 peak,according to the avoid the government’s most oner- to a breakup,which got a big push in from the Chase retail banking busi- dent of retail consultancy the most recent available U.S. Census ous requirements. January from competitor Goldman ness. The new Chase bank would Grayson Co.“The high end and the Bureau data. For many retailers, this A growing chorus of banking ex- Sachs. That’s when Goldman ana- become a less-risky outfit because it low end—those two businesses are means marketing to customers who perts believes it’s only a matter of lyst Richard Ramsden published a wouldn’t be supporting a big trading thriving. If you’re in the middle, now care more about price than time before the combination of gov- report showing how to carve up the desk—and instead of tying up its you’d better have a darn good reason brand. ernment and investor pressure large and complex JPMorgan, capital to satisfy regulators, it could for being there based on product and Though gas prices are down and forces the bank’s board of directors which employs 240,000 people invest in growing its business and freshness.” the dollar is strong, many shoppers to cave, defy Mr. Dimon’s wishes across the globe,including 37,000 in improving returns. are dealing with inflation on every- and break up the giant. the New York area, according to Goldman’s Mr. Ramsden esti- Hundreds of store closings day essentials like groceries,housing “It is only natural that manage- Crain’s research. mated in January that investors Unfortunately, many stores and education. The New York-area ment would be in denial at this junc- would be rewarded with a share didn’t get the memo. Though fast- consumer price index for food rose ture,” analysts at MKM Partners price 25% higher than if the compa- fashion players such as H&M and 3.5% during 2014, for example. wrote last week. ny stayed together. A 25% increase Forever 21 are in expansion mode, Any extra income accumulated State bank regulator Benjamin would be a big deal for a public com- and luxury brands from Ralph Lau- from gas pumps is being used to pay Lawsky, superintendent of the New pany the size of JPMorgan, whose ren to Tory Burch continue to roll off bills or stored in savings,or spent York Department of Financial Ser- market value is $230 billion. out new products, midtier retailers on luxury items that are now must- vices, said that large banks have More dramatic measures could are struggling. haves, experts said. shown they are difficult to manage be taken. Chase’s credit-card busi- Bankrupt chains Delia’s, Wet “There’s not as much consump- properly,though he doesn’t advocate ness would appear to be a strong Seal and Caché have all closed hun- tion as you might expect,” said Mil- any particular breakup. stand-alone candidate, since its dreds of stores since the fall, and ton Pedraza, chief executive of re- “These institutions get to a cer- loan volume is more than twice that 1,700 RadioShacks will follow. search group the Luxury Institute. tain point—I manage an institution of another big independent, Dis- Though retailers are dealing with He noted, however, that technology with 1,400 people and that’s a chal- cover. And the bank’s asset-man- the oversaturation and decline of is still thriving because consumers lenge,” Mr. Lawsky said. “When agement division—which steers shopping malls,there’s a more wide- now consider such purchases essen- you have 40,000 people, to have risk Jamie Dimon $1.7 trillion, or more than twice spread problem at play. Worried tial. “They will stretch for iPhones, controls in place and know what’s ap images that of T. Rowe Price—could also about an uncertain global economy but may not stretch $70 for a J.Crew going on in every aspect of the insti- thrive on its own. and rising prices, middle-class pair of pants when you can get them tution is a real challenge.” ‘It’s only spenders are seeking deals, such as a at Uniqlo for two-thirds of the price.” ‘The market’s wrong’ $6 T-shirt,or splurging on truly spe- Some of the recent closures can Economic benefit? natural that JPMorgan officials insist their cial, must-have merchandise, like a be attributed to timing. C. Wonder A breakup of JPMorgan would company is better off together than $1,200 Canada Goose jacket. Stores and Saturday were barely out of be America’s most significant cor- management apart. While acknowledging that such as J.Crew,Gap and Aéropostale their infancy—C. Wonder was porate divorce since phone monop- investors aren’t enthusiastic about are getting squeezed as a result. founded in 2011,Saturday two years oly AT&T was carved up in 1984.It would be the stock at present,Mr.Dimon said For the quarter ended Nov. 1, later—and expanded too quickly also would have major consequences at last week’s presentation that peo- J.Crew reported that same-store out of the gate when consumers be- for New York City, where the bank in denial’ ple underestimate the resilience and sales declined 2%. In January, long- gan tightening their purse strings. has been the largest private employ- multibillion-dollar earning power ailing San Francisco-based Gap an- er for many years.But the good news of his company. As their views nounced it was letting go of its cre- Overextended brands is that a breakup arguably could change, the bank’s stock price will ative director, who had been with These brands tried to be every- benefit the city’s economy some- rise and, presumably, talk of a the company since 2012, and axing thing to everyone at once, rather what. breakup will dissipate. the position altogether. than focusing on doing a single Think of it as the opposite of JPMorgan dominates the local “When people tell me the mar- Meanwhile, brands such as product right and expanding into merger synergies, where employees banking scene, holding more than a ket says ‘X,’that means almost noth- Aéropostale and Sears, which occu- other categories over time. lose their jobs as companies are third of all deposits in the region. It ing to me, almost zero,” Mr. Dimon py the lower end of the midtier, are Ralph Lauren started with ties smashed together: A breakup of the owns or leases 10.5 million square said. “The market was wrong last closing underperforming stores left when he founded his namesake magnitude of JPMorgan’s could cre- feet of office space in the city, plus time, and it’s wrong right now.” and right. And Macy’s is investing brand nearly four decades ago, and ate more jobs because each newly in- another 1.2 million square feet Mr. Dimon, 58, appears to have an additional $100 million in capi- eventually grew it into a $7.4 billion dependent company would require across the Hudson in Jersey City. the backing of his board for now and tal spending this year for new store lifestyle label.C.Wonder has closed thousands of its own staff in areas seems intent on remaining on the concepts and international growth, its 32 stores, which included three like administration and information The big question job a good while longer. Last week, in order to ramp up sales amid slug- local shops.Saturday,a lower-priced technology. Reduced to its raw numbers, the he told analysts he looks forward to gish traffic. label that lacked an identity distinct “You’re talking about fewer breakup case rests on this question: talking to them in four years—when “We had another good year in from its parent, will shutter its shared services, so from that per- Do investors believe JPMorgan those latest federal capital require- 2014,” said a spokesman, noting Spring Street store by July, along spective a breakup could be a slight management can achieve its goal of ments kick in—about how well that Wall Street always wishes for with 18 other locations. positive to the city,” said Adam raising the bank’s return on tangible JPMorgan is doing. higher projections. “There were a lot of new entries Kamins, a senior economist at equity to 15% from its current 13%? In the meantime, advocates of a Many of these brands are offer- at a time when retail wasn’t really Moody’s Analytics who specializes (Return on tangible equity is a key split can point to what they call the ing steep discounts to reverse the flourishing,” said Rebecca Duval, a in the New York economy. barometer that measures how effec- beneficial impact of dividing up the downward slide. retail analyst at BlueFin Research The key, of course, would be tively banks deploy their capital.) old AT&T.Ma Bell had $70 billion “You either have to be lighting Partners. “It wasn’t the best time to keeping the jobs here, in one of the JPMorgan generated $22 bil- in revenue and 373,000 employees people on fire and getting them ex- come into the market or try to de- most expensive cities to conduct lion in net income last year on $94 at the dawn of its breakup. cited about product, or you find velop a growth story.” business. But that prospect seems billion in revenue, off a tangible A decade later, the seven so- yourself like J.Crew and Gap, run- To attract spending,retailers need more likely now that New York capital base of $166 billion.Yet fed- called Baby Bells collectively em- ning 30% to 40% off your entire to introduce more eye-catching City appears poised to lower taxes eral regulators in December un- ployed 476,000 people and generat- store,” said Mr. Mullaney. products, experts say, though there on banks to match reductions veiled a plan that would require the ed $79 billion in revenue, and their In addition, middle-market ap- are few trends right now to bet on. adopted by the state two years ago. capital base to grow by another $22 operating income was nearly double parel sellers are also faced with in- Athletic looks have already become A proposal has been included in billion by 2019. That suggests the pre-breakup levels, according to creased competition from special- ubiquitous; consumers can find the Gov.Andrew Cuomo’s budget, and bank, in order to hit management’s their annual reports. ized online players such as Bonobos same me-too jogger pants at H&M the state legislature is expected to performance target, would have to Of course, the story doesn’t end and Asos—buzzy brands that often that they can find at J.Crew. approve it. lift profits to about $28 billion, or there. Many of the Baby Bells don’t have the same overhead asso- “We have a plethora of retailers “The big picture is there would more than 25%, over the next four weren’t able to compete amid the ciated with large brick-and-mortar with that same weak message in be significant cuts in bank taxes as a years. rise of the Internet and cellphones. chains. terms of the trends they’re getting They ultimately merged with each “There is such a wealth of op- behind, and eventually they’ll con- CORRECTIONS other—or back into the arms of tions, particularly with the Inter- tinue to lose market share,” said Ms. AT&T. Ⅲ net,” said Kelly Tackett, research di- Duval. Ⅲ The Federation of Jewish Philanthropies merged with United Jewish Appeal to form what is now known rector at Planet Retail. “It’s really as UJA-Federation of New York. The Federation and Guidance Service (FEGS) is considering LISTEN LISTEN bankruptcy; it has not yet declared it. These facts were misstated in the Feb. 23 op-ed “Nonprofits in to a discussion at hard to stand out among that to a discussion at search of accountability.” CrainsNewYork.com/podcasts crowded field.” CrainsNewYork.com/podcasts

March 2, 2015 | Crain’s New York Business | 23 20150302-NEWS--0024,0025-NAT-CCI-CN_-- 2/26/2015 7:30 PM Page 1

BUSINESS 4.4% Portion of city spending that has gone to women- and minority-owned businesses in fiscal 2015 to date PEOPLE Source: Checkbook NYC

EXECUTIVE MOVES

Bowery Mission: David Jones,55, joined the nonprofit as president. He was formerly interim president at Goodwill Rescue Mission. Mpowerd Inc.: Scott Kling, 55, was promoted to chief executive at the clean-energy product manufacturer. He continues as the company’s chief operating officer and president. Fluid Inc.: Joshua McGuire, 28, joined the digital-shopping strategy, design and technology firm as creative director. He was previously creative director at Tribal Worldwide. Y&R New York: Leslie Sims, 45, joined the advertising agency as chief creative officer. She was previously executive creative director and executive vice president at McCann New York. Wells Fargo: Larisa ON A ROLL: Wendy Perry, 50, was Rubin projects first- promoted to year revenue at her Northeast lead casino school will hit region president at $1 million. the financial- services company. She was formerly Central Jersey region president. Momentum Search Group: Philip Brown, 59, joined the attorney- recruitment agency as executive managing director of partner recruitment. He was previously a managing partner at Torys. KPMG: Julia Flanagan, 41, joined the accounting firm as managing director.

buck ennis She was formerly a director at Price- waterhouseCoopers. GOTHAM GIGS Jeffrey Sopko, 44, joined as managing director. He was previously vice president and general manager of diagnostics and emerging service at Surescripts. Valerie Wahl, 45, joined as managing director. She was previously senior Let’s make a dealer managing director at PricewaterhouseCoopers. Daniel Mullin, 48, joined as principal. He was previously senior vice Wendy Rubin hopes casino school is a drawing card president at Bank of America. ICR: Michael Wendy Rubin’s tips for women playing poker: Jersey and Pennsylvania are looking to attract city Robinson, 51, joined ‘All the the public-relations Let your hair down, don’t wear glasses, and show gamblers and need staff. ¶ “All the money in New firm as managing money in cleavage. (“It doesn’t matter what you look like,” York City is looking for somewhere to go,” said director. He was she said. “It’s a distraction.”) Her technique for Ms. Rubin, who doesn’t gamble—unless you formerly executive NYC is vice president at opening the only licensed casino school in the count poker. “In the end, the skilled poker player Levick. state: Be persistent. ¶ Four years ago, when will win.”The Colorado native learned the game John Jannarone,34, looking for joined as senior vice president. He was expanded gaming in New York was just a theory, to improve her business skills—and it worked. ¶ previously a senior writer and reporter somewhere Ms. Rubin started work on her casino-school But not always. Ms. Rubin, who is in her 40s, ran at CNBC. Building Conservation Associates: Lisa to go’ project. After seeing 60 properties, she settled on an online music CD store in the 1990s that Howe, 53, joined the consulting firm a 2,000-square-foot space in midtown and started seemed slated for success—one year before as co-director. She was previously director of preservation at Consigli her first class of 10 students last month. Courses Amazon took over that market. ¶ Starting a Construction Co. can be pricey—a four-week intro to blackjack and business in a barely legal industry has its PTA Networks: Betsy Sanner Ayala, 38, Spanish 21 costs $840, and an eight-week class in challenges. It took several months to move a joined the digital-media company as head of programming development craps is $2,340.The school is geared to players roulette wheel from an Atlantic City casino into and production. She was previously and aspiring croupiers. Ms. Rubin, who also plans the school: She was required to get consent from executive producer and head of new development at Moxie Pictures’ to rent out her venue for events, predicts her first- New York State Gaming Commission lawyers television division. year revenue will hit $1 million. ¶ By late 2015, and join a federal registry. Ms. Rubin hopes being Billy Fox, 45, joined as head of advertising sales. He was previously she hopes to start a school upstate, ahead of new first will give her a leg up on the inevitable senior sales leader on iAd at Apple. casinos there. For now, plenty of venues in New competition. —irina ivanova TPG Architecture: Ron Alalouf,38,was

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SOURCE EXECUTIVE MOVES LUNCH: LESLIE BOCSKOR Interview by Irina Ivanova promoted to principal. He previously was project director and associate principal. Tom Hughes, 43, was promoted to principal. He was previously studio director and associated principal. Gladys Yue, 40, was promoted to Investor in search of the gold of pot principal. She was previously studio director and associate principal. Chess-in-the-Schools: Yolanda Johnson, 37, joined the nonprofit educational eslie Bocskor (pro- I’d say that any step in the direction those partnerships between the You must be in demand. organization as vice president of nounced “bosscore”), of establishing [a market] is a good best operators and the best local Yes, I’m very busy. And it’s awe- development and communications. She investment banker step, however small. New York did partners. Help create the winners some. This is a unique moment in was previously development manager at turned canna-business- a few things right in that they got it and then deploy capital to help time, and wide-ranging in its effect Princess Grace Foundation-USA. man, holds guru status moving in a fairly substantial way. them. We’ll also be looking at the on our culture and people.The eco- BBH New York: Armando Turco, 38, was for many looking to get into the They did a couple of things very public markets, because so many nomic impact is sub- promoted to head of talent, a newly cre- L Ⅲ ated position, at the full-service adver- growing sector of legal marijuana. wrong. To have a state with a pop- companies are starting to go pub- stantial. tising agency. He was previously head of For four years, the native New ulation of, what, 17 million? lic through reverse mergers. Many management. Yorker has lived in Nevada, where of them will run into trouble be- Sofitel New York: he co-founded the Nevada Can- 19 million. cause being public is challeng- Vincent Vienne,42, nabis Industry Association and And 55 million tourists a year [in ing. That creates an opportuni- rejoined the luxury helped 15 organizations successful- New York City]. To only have five ty for someone like my team to hotel as general ly apply for marijuana distribution [cultivation] licenses for the entire help them with a turnaround, to manager. He was licenses. In New York, he’s creating state probably tends to favor those restructure and recapitalize.The previously general a cannabis industry association and with an extraordinary amount of valuation that comes manager at Sofitel Philadelphia. a hedge fund. influence and capital. And it’ll with a turn- Time Inc.: Matt Bean, make for an unbalanced result. In around is very 36, was promoted to senior vice What is lacking in the industry? Nevada, we gave out 66 licenses, substantial. president of editorial innovation, a The industry is at such an early stage and the legislators said we should Thirdly, be- newly created position, at the media that there is opportunity in every sec- have had many more. cause of our company. He was previously editor at tor, even technology. I just had a position in Entertainment Weekly. meeting with a tech company named What does getting it right look like? the indus- Henry Goldblatt, 44, was promoted to PotBotics.They’re using an EEG to There are a few things that Nevada try, we see editor at Entertainment Weekly. He was record brain activity while somebody has done right. One is [allowing] a lot of previously deputy editor at People. Will Lee, 41, was promoted to digital is using different strains of for-profit entities.Two is great editorial director at People.com and cannabis. The goal is to WHERE outside ownership of deal EW.com. He was previously editor at create a library of data of those entities—which flow,and People.com. people who have tried THEY you can’t have in Col- we’re L’Oréal USA: Sumita Banerjee, 43, was these strains,and their sub- DINED: orado or Washington. usually promoted to senior vice president of jective and objective expe- New York is doing both able talent acquisition for the Americas zone BUBBY’S HIGH rience. LINE those right. The other to invest for the cosmetics company. She was 120 Hudson St. common-sense compo- in places formerly vice president of talent How big is the potential (212) 219-0666 acquisition. nent is reciprocity for that no one market for legal cannabis? bubbys.com Viacom Media Networks: Tom Gorke,39, other [states’] medical- else can. was promoted to executive vice The [global] recreational AMBIENCE: marijuana programs. To president of sales and business market is somewhere be- An airy and have a medical- How do you development and content distribution at tween $40 billion and $110 crowded foodie marijuana program, distinguish the division of media conglomerate billion a year. The medical favorite that where you’re saying,“We between Viacom. He was previously senior vice manages to stay someone market is $10 billion a year, unpretentious recognize its value as a president of content distribution and probably more. Then therapeutic agent,” but who’s a marketing. WHAT THEY ATE: fringe Oban Digital: there’s the supplement and not to let tourists pur- Trina Hymes, 35, joined the Ⅲ Medium-rare operator digital marketing agency as vice president nutraceutical market. If chase their medicine burger with bacon and the real of U.S. sales, a newly created position. you go into Amazon right and cheese; when they come here, She was previously director of sales at now and type in “CBD,” lemon-lime soda; doesn’t make sense on its thing? Vocus. there are over 100 products decaf cappuccino face. When you do that, First and foremost, Sizmek: Stella that come up with some Ⅲ Kale salad; you’re promoting crimi- who are the team ArayaWeil, 46, joined reference to cannabidiol; sour-cherry pie à nal activity. members? Are they la mode the multiscreen ad- there will be many, many people we would be serving platform as more. For the pharmaceu- PRICE: Last time we spoke, you interested in investing vice president of global tical market, nobody’s were establishing a hedge in, regardless of what holdings. She was $88.50, including tip fund. formerly senior vice done a study and I won’t their industry was? If president of sales at even speculate, but GW Yes. It’ll be based in the answer is yes, then Parade Media Group. Pharmaceuticals has a $1.5 billion Nevada, but investing in the entire we look at the oppor- World Business Lenders: Billy Morrissey, market cap,and that’s just one [drug] country. And in the fund we create tunity. Is there too 43, joined the small-business lender as company working with cannabis. after, we’ll probably be looking at much competition in vice president. He was previously chief There’s veterinary; there’s industrial the international market as well. there? Is the opportuni- executive at Merchant Solutions Group, hemp—for rope, for parachutes, for ty big enough that it which he founded. clothing; and finally the B-to-B What is your investment strategy? makes sense for a public DuJour: Sydney Wasserman, 29, was promoted to market director of the market. First is to help new markets open company? How will it be luxury-lifestyle magazine. She was up. Find the best people from the affected by future legis- previously senior market editor. What do you think of New York’s existing cannabis industry in states lation? How will it fit Paul Frederick, 25, was promoted to evolution on marijuana? where there is one—and create into the evolving market? buck ennis fashion market editor. He was previously associate fashion market editor. Proskauer: Tara Mulrooney, 38, joined the law firm as special construction counsel. PLAY/LIST People, places and things that make Leslie Bocskor tick She was previously a partner at Ingram Yuzek Gainen Carroll & Bertolotti. CENTRAL PARK: has been to the gathering four times. makes him more memorable, —chris kobiella “I miss it more than I knew I would. Mr. Bocskor is a firm believer FACIAL FENG SHUI: EXECUTIVE PROMOTIONS Every time I come back [to New York], in proper business attire. all I want to do is go for a walk in the “My background is Transylvanian, so in The fastest way to get an announcement into park.” my family, the eyebrows were there for MOTORCYCLES: Crain’s is to submit online. Fill out the form at www.crainsnewyork.com/section/ many generations.” Mr. Bocskor and his wife are executive_moves. The Executive Moves column BURNING MAN: both avid riders, but he has is also available online. Mr. Bocskor has attended every year COAT AND TIE: held off on riding since his since 1994; his 3-1/2-year-old son Although the dramatic facial hair son was born.

March 2, 2015 | Crain’s New York Business | 25 20150302-NEWS--0026-NAT-CCI-CN_-- 2/27/2015 6:32 PM Page 1

SNAPS Execs, celebs join to raise $500,000 for Dance Theatre of Harlem joseph rodman joseph KAREN BROWN and WENDY WHELAN at Dance Theatre of Harlem’s Vision Gala. joseph rodman joseph (Top row) VALENTINO CARLOTTI, SHERRY BRONFMAN, joseph rodman joseph VIRGINIA JOHNSON and FRANCIS LAWRENCE, and MICHAEL ARMSTRONG LEANNE FREMAR HANNAH STORM LESLIE WIMS MORRIS , , and at Dance Theatre of Harlem’s Vision Gala. The Feb. 24 benefit generated $500,000 for the (bottom row) GLORIA STEINEM and JESSYE NORMAN at 46-year-old performing-arts and dance-education organization. Dance Theatre of Harlem’s Vision Gala. margot jordan DAVID DINKINS, RUTH CLARKE and ROSCOE BROWN JR. at the One Hundred Black Men Inc. of New York’s 35th Annual Benefit Gala. The

Feb. 19 fete took in $600,000 in support of neville elder

mentoring, education, health and wellness, and margot jordan WESLEY STACE, MARIA VENEGAS, SALMAN RUSHDIE and JOSHUA BELL at the Still Waters in economic-empowerment programs. CARLA A. HARRIS and STEVEN A. BOARD at the One Hundred Black Men Inc. of New York’s a Storm benefit. The Feb. 22 concert raised funds for the Brooklyn-based educational 35th Annual Benefit Gala. organization. patrickmcmullin.com / julie skarratt sylvain gaboury sylvain

LAN YAN, LONG YU, QIYUE ZHANG and JON HUNTSMAN JR. at China Arts Foundation GARY PARR and ANGELA CHEN at the julie skarratt International’s Second Annual Chinese New Year Gala. The Feb. 23 event raised an estimated New York Philharmonic’s fourth annual LLOYD BLANKFEIN, YO-YO MA and KAREN LEFRAK at the Philharmonic event, which raised $350,000. Chinese New Year’s Gala on Feb. 24. $1.1 million.

See more of this week’s Snaps online at CrainsNewYork.com/galleries.

26 | Crain’s New York Business | March 2, 2015 20150302-NEWS--0027-NAT-CCI-CN_-- 2/26/2015 7:17 PM Page 1

FOR THE RECORD

Center, Flushing Meadows Corona options on 29,250 shares of common Properties, was represented in-house by Park, Queens, from 8 a.m. to 3 p.m. To stock at prices ranging from $33.42 to Mark Stein. The asking rents on the make inquiries, contact Michael $273.67 per share on Feb. 20, in a ABOUT THIS SECTION upper floors in the building are usually Shipman at (718) 760-6705 or transaction worth $3,679,498. On the in the mid- to high $60s. FOR THE RECORD is a weekly listing of information from the public record michael.shipman@ parks.nyc.gov. same day, he sold 29,250 shares of that can help businesspeople in the New York area find opportunities, RETAIL common stock at prices ranging from Seeks competitive sealed bids by 10:30 $421.72 to $424.58 per share, in a potential new clients and updates on competitors. ● John Barrett Salon signed a lease for a.m. on March 10 for the in-kind transaction worth $12,372,908. He now To ask questions or get more information on this section, contact 16,000 square feet at 10 W. 56th St. The reconstruction of deteriorated roofing directly holds 47,500 shares. Crain’s research department at [email protected]. hair salon will keep its presence at systems at various parks and recreation Bergdorf Goodman and expand to the locations citywide. Bid documents are entire mansion at this address. The ● Colgate-Palmolive Co. (CL) available for a fee of $25, payable by tenant was represented by CBRE’s Fabian T.Garcia, chief operating officer company check or money order to the NEW IN TOWN Listings are in alphabetical order. Alden Alexander and Annette Healey. of global innovation and growth, City of New York, Parks and Recreation, The landlord, Carlos Slim, was Europe/South Pacific and Hill’s Pet in the Blueprint Room, Room 64, Companies that would like to have details ● Allstate Window Cleaning & Power represented by MHP Real Estate’s Nutrition, exercised options on 123,000 Olmsted Center, Flushing Meadows of openings published should submit Washing Inc. Roxana Girand. The rent will be $1.5 shares of common stock at $36.61 per Corona Park, Queens, from 8 a.m. to 3 descriptions following this format to 7 Forsythia Court, Holtsville, L.I. million per year. share on Feb. 13, in a transaction worth p.m. To make inquiries, contact Michael [email protected], with Filed for Chapter 7 bankruptcy on Feb. $4,503,030. On the same day, he sold Shipman at (718) 760-6705 or “New in Town” in the subject line. 19. The filing cites estimated assets of $0 ● Jackson Heights Cardiovascular 123,000 shares of common stock at [email protected]. to $50,000 and estimated liabilities of $0 Associates signed a 10-year lease for $70.04 per share, in a transaction worth ● Don Tapas to $50,000. The creditors with the 13,780 square feet at 75-07 31st Ave. $8,615,277. He now directly holds 31-00 47th Ave., Queens largest unsecured claims are New York GOODS AND SERVICES The medical company will relocate from 214,117 shares. The tapas restaurant opened in Long State Insurance, owed $8,250; New York ● Economic Development Corp. 35-20 90th St. to occupy space in the Island City. It offers Spanish, Peruvian, State Insurance, owed $6,000.68; and Requests proposals by 4 p.m. on March Jackson Heights Shopping Center. DY ● Time Warner Inc. (TWX) Venezuelan and Colombian-inspired New York State Department of 16 for the new Stapleton waterfront Realty Services’ Brian Jaffee brokered Olafur J. Olafsson, executive vice tapas such as a baguette with garlic, Taxation, owed $4,804.11. infrastructure and open-space project, the deal. The landlord is Muss president of international and corporate tomato, Serrano ham and a Spanish phases two and three: planning, Development. The asking rent was not strategy, sold 79,677 shares of common tortilla, as well as ceviche. ● Biotech Industries Ltd. engineering and design consultant disclosed. stock at $83.79 per share on Feb. 19, in a 785 Mamaroneck Ave., White Plains services. Proposals are available at transaction worth $6,676,136. He now ● Early Filed for Chapter 7 bankruptcy on Feb. nycedc.com/RFP.To make inquiries, ● Adidas signed a lease for 4,500 square directly holds 9,475 shares. 967 Manhattan Ave., Brooklyn 23. The filing cites estimated assets of contact Maryann Catalano at (212) 312- feet at 452 Fulton St. in Brooklyn. The The Polish café opened in Greenpoint. It $100,001 to $500,000 and estimated 3969 or [email protected]. shoe company’s store will serve as a ● L-3 Communications Holdings Inc. offers modern updates on Polish cuisine liabilities of $100,001 to $500,000. The borough flagship. The tenant was (LLL) with sandwiches such as its zapiekanka— creditors with the largest unsecured ● Housing Authority represented by RKF’s Jeremy Ezra. The Curtis Brunson, executive vice president a baguette with caramelized onion, claims are Burke Rehabilitation Seeks competitive sealed bids by 10 a.m. landlord, Crown Acquisitions, was of corporate strategy and development, mushrooms and garlic, topped with Hospital, owed $64,590; Ottobock, on March 12 for Supply Management represented in-house. The asking rent exercised options on 50,944 shares of fontina, chives and truffle oil. owed $50,761; and PNC Bank, owed Department maintenance painting of was $350 per square foot, a high for the common stock at $76.82 per share on $40,508. apartments at King Towers, Randolph borough. Feb. 18, in a transaction worth ● Monte-Carlo NYC Houses and Grampion Houses. Bid $3,913,518. On the same day, he sold 181 E. 78th St. ● HS 45 John documents are available at 50,944 shares of common stock at The restaurant, based on food from 45 John St., Manhattan nyc.gov/nychabusiness. To make STOCK TRANSACTIONS $129.12 per share, in a transaction worth Monte Carlo, opened on the Upper East Filed for Chapter 11 bankruptcy on Feb. inquiries, contact Erneste Pierre-Louis $6,577,890. He now directly holds Side. It offers French fare with a 20. The filing cites estimated assets of at (212) 306-3609 or erneste.pierre- Following are recent insider transactions at 79,786 shares. Mediterranean influence, such as coq au $50,000,001 to $100 million and [email protected]. New York’s largest publicly held companies vin, country terrine, skate fish estimated liabilities of $50,000,001 to filed with the Securities and Exchange ● Foot Locker Inc. (FL) Grenobloise in a brown butter caper $100 million. The creditors with the Seeks competitive sealed bids by 10 a.m. Commission by executives and major Ken C. Hicks, executive chairman and sauce, mussels marinières, and French largest unsecured claims are Mordy and on March 12 for Supply Management shareholders. Listings are in order of director, exercised options on 120,000 and Californian wines. Pinky Sohn, owed $14,330,000; Eastern Department maintenance painting of transaction value.The information was shares of common stock at prices Consolidated, owed $750,000; and apartments at Clinton Houses. Bid obtained from Thomson Reuters. ranging from $10.10 to $30.92 per share ● Toms Meridian Capital Inc., owed $700,000. documents are available at between Feb. 17 and Feb. 19, in a 264 Elizabeth St. nyc.gov/nychabusiness. To make ● Estée Lauder Cos. (EL) transaction worth $2,877,600. In the The philanthropic shoe company is ● Look of London Hosiery Ltd. inquiries, contact Erneste Pierre-Louis Marc Cedric Prouvé, group president, same period, he sold 120,000 shares of opening its first New York store, in Little 43 Hall St., Brooklyn at (212) 306-3609 or erneste.pierre- international, exercised options on common stock at prices ranging from Italy.The store donates a pair of shoes Filed for Chapter 7 bankruptcy on Feb. [email protected]. 189,812 shares of common stock at $53.50 to $54.02 per share, in a for every pair sold, and this location will 20. The filing cites estimated assets of $0 prices ranging from $29.04 to $49.09 transaction worth $6,453,076. He now provide a week’s worth of clean water to to $50,000 and estimated liabilities of per share on Feb. 19, in a transaction directly holds 517,262 shares. one person in need for each bag of coffee $100,001 to $500,000. The creditors REAL ESTATE DEALS worth $7,312,871. On the same day, he sold from its fair-trade coffee shop. with the largest unsecured claims are sold 189,812 shares of common stock at ● Cognizant Technology Solutions Corp. 9-47 Hall Street c/o Lineage Ventures, Companies that would like to have details $81.12 per share, in a transaction worth (CTSH) owed $56,000; Kabbage Business Loan, of their recent transactions appear in these $15,397,549. He now directly holds Francisco D’Souza, chief executive, sold COMPANY MOVES owed $16,000; and Can Capital Asset listings should email descriptions following 172,555 shares. 93,445 shares of common stock at prices Servicing, owed $15,000. this format to cnyb-research@crainsnew ranging from $62 to $62.21 per share Companies that would like to have details york.com, with “Real estate transaction” in ● Regeneron Pharmaceuticals Inc. between Feb. 19 and Feb. 20, in a of recent moves published should submit the subject line, or enter them online at (REGN) transaction worth $5,797,112. He now descriptions following this format to GOVERNMENT CONTRACT crainsnewyork.com/submitadeal. Deals are Arthur F. Ryan, director, exercised directly holds 385,945 shares. Ⅲ [email protected], with OPPORTUNITIES listed in order of square footage. “Company Moves” in the subject line. Following are selected contract COMMERCIAL ● Bonnie Slotnick Cookbooks opportunities recently announced by New ● Hitachi Data Systems signed an 11- DEALS ROUNDUP 28 E. Second St. York City agencies.To learn how to sell year lease for 24,250 square feet at 101 The cookbook store moved from the goods and services to city government, visit Park Ave. The information-technologies TRANSACTION SIZE West Village to the East Village. It www.nyc.gov/selltonyc. For a searchable provider will relocate from 90 Park Ave. TARGET/SELLERS (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE offers rare and out-of-print texts. database of current procurement notices, and occupy the entire 10th floor. The Joliet Bulk, Barge & Rail/ $243.0 Arc Logistics Partners (Manhattan), FB M&A visit www.nyc.gov/cityrecord. Listings are tenant was represented by JLL’s Centerpoint Properties Trust GE Energy Financial Services ● Lululemon Women’s alphabetical by category and department. Alexander Chudnoff and Scott Vinett. 125 Prince St. The landlord, H.J. Kalikow & Co., was Stephens Media/ $102.5 New Media Investment Group Inc. SB M&A CONSTRUCTION SERVICES Stephens Capital Partners, (Manhattan) The sportswear store opened a new represented by Cushman & Wakefield’s Stephens Group location in SoHo. The shop offers ● Department of Design and Construction John Cefaly and Augustus Field. The Oasis Shopping Centre, $80.5 Abacus Property Group, FB M&A athletic clothing and accessories. Seeks competitive sealed bids by 11 a.m. asking rents were in the high $70s to low Broadbeach, Queensland, KKR & Co. (Manhattan) on March 10 for the rehabilitation of $80s per square foot. Australia/Brookfield Asset ● Sushi Shop interceptor sewers and appurtenances in Management Inc. ● 323 Park Ave. South the Bronx and Manhattan. Bid Orbis International re-signed its lease SDI Media Central Holdings $75.2 Imagica Robot Holdings Inc. (50.1%) SB M&A The European sushi chain opened its documents are available at for 16,000 square feet at 520 Eighth Ave. Corp./VPG SDI Media second New York store, in the Flatiron nyc.gov/buildnyc. To make inquiries, The nonprofit renewed for another 15 (Manhattan) district. The menu includes maki, hand contact Emmanuel Charles at (718) years. The tenant was represented by Arc Logistics Partners/ $75.0 Cohen & Steers Inc. (Manhattan), GCI rolls, ceviches and chirashi bowls. 391-2200 or [email protected]. JLL’s Kirill Azovtsev and Patrick Heeg. not disclosed Goldman Sachs Asset Management The landlord, New 520 Eighth LLC, (Manhattan), KA Fund Advisors, ● Department of Parks and Recreation was represented by Newmark Holdings’ MTP Energy Infrastructure Finance BANKRUPTCIES Seeks competitive sealed bids by 10:30 Matthew Mandell. The asking rent was Master Fund Ltd., Nuveen Investments Inc., a.m. on March 10 for the reconstruction $49 per square foot. OFI SteelPath Inc., Telemus Investment The following listings are selected from the of comfort stations and facilities at Management, Triangle Peak Partners most recent available filings by companies various parks and recreation locations ● Allied Works Architecture renewed its Selected deals announced for the week ended Feb. 19 involving companies in metro New York. seeking bankruptcy protection in the citywide. Bid documents are available lease for 5,458 square feet on the 18th FB M&A: Financial buyer M&A represents a minority or majority acquisition of existing 12 W. 27th St. shares of a company with the participation of a financial buyer. SB M&A: Strategic buyer Southern and Eastern Districts of New for a fee of $25, payable by company floor at The tenant was M&A represents a minority or majority acquisition of existing shares of a company without the York. Information was obtained from U.S. check or money order to the City of represented by CBRE’s Matthew participation of a financial buyer. GCI: Growth capital investment represents new money Bankruptcy Court records available on New York, Parks and Recreation, in the Bergey, Brett Kaye and Stuart Siegel. invested in a company for a minority stake source: capitaliq Public Access to Court Electronic Records. Blueprint Room, Room 64, Olmsted The landlord, Himmel & Meringoff

March 2, 2015 | Crain’s New York Business | 27 www.cbre.com/nyc

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