Or Die Tryin'

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How to make it as an artist in New York OR DIE TRYIN’ PAGE 15

NO SUCH THING AS A FREE (FERRY) RIDE P. 7

PLUS Two real estate execs nearly take the gloves off P. 10 VOL. XXXII, NO. 12 WWW.CRAINSNEWYORK.COM THE LIST 12

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MARCHCRAINS 21-27, 2016

FROM THE NEWSROOM | JEREMY SMERD Trashing the city IN THIS ISSUE 4 AGENDA

A DOZEN GUESTS VISITED our newsroom last week to talk 6 IN CASE YOU MISSED IT about an issue central to the life of every New Yorker: 7 TRANSPORTATION Mayor’s affordable- housing plan may garbage. Most of us would prefer not to think about trash, 8 ASKED & ANSWERED never reach its but we can’t avoid it. It’s everywhere—and in my Bed- goals without this 9 HEALTH CARE tax break Stuy neighborhood, that includes the trees. Trash is one 10 REAL ESTATE area where New York reminds me of a city I lived in long 11 ago, Kathmandu. Nepal, though, is one of the poorest WHO OWNS THE BLOCK countries on earth. 12 VIEWPOINTS Our Sanitation Department 14 THE LIST picks up residential garbage, but that’s only a third of There’s next to no FEATURES New York’s waste. Commercial carters haul the rest. Back recycling going on,” 15 COVER STORY in the day, the mob controlled them. That was good news “ for workers. Allen Henry, a member of Teamsters Local claimed a former 24 GOTHAM GIGS 813, told us he made $16.10 an hour when he started commercial waste 25 SNAPS slinging trash in 1985. Then the city busted up the mob’s 26 FOR THE RECORD monopoly, competition ensued and prices for businesses collector, now a 27 PHOTO FINISH dropped. So have wages. Henry’s son joined the union organizer after Teamsters four years ago as a trash collector for a private 30 years on a truck hauler. Starting pay: $11 and change. “The government got the mob out,” Henry said, “but the worker took a beating.” Carting companies compete for business customers across the city. For some, the clients are so spread out that a truck that picks up only cardboard can’t get to them all. So Henry often had to throw cardboard—a valuable commodity—into his regular trash truck. “There’s next to no recycling going on,” Henry said, even though recycling laws have been on the books for more than 20 years. P. 24 The drop in wages, the loss of Teamsters’ market share and the inefficiency of Apolonia Edwards carters has made allies of the union and environmentalists. Their coalition, Transform Don’t Trash NYC, wants the City Council to divide the city into CORRECTIONS RICHARD KALIKOW is not the owner of 101 Park Ave. His first geographic zones where one carter would have the exclusive right to pick up cousin Peter Kalikow owns that property. This information was commercial waste. The coalition says that on any given night, 4,200 trucks from misstated in the March 14 “High risk play.” competing companies leapfrog one another on city streets. They want DEVELOPER DELANCEY STREET ASSOCIATES will pay for the Essex Street Market vendors’ move from the old building to legislation to create a more efficient system and raise wages for workers. their new digs at Essex Crossing, not the city’s Economic Since 2008, the city has increased by 50% the cap on rates that carters can Development Corp. This information was misstated in the March 14 “Cheap rent in 2018, but only if vendors survive charge businesses. If there are savings to be found, they should go toward until then.” keeping prices down while increasing the paltry 25% recycling rate, which is much lower than in cities with zoned systems. Offices produce mainly paper; restaurants produce mainly food waste. That’s half the waste stream right there. That we haven’t figured out how to recycle it is why New York is more like trash- strewn, poverty-stricken Kathmandu than eco-friendly Seattle.

ON THE COVER PHOTO: BUCK ENNIS CONFERENCE CALLOUT APRIL 5 CRAIN’S BUSINESS BREAKFAST FORUM DIGITAL DISPATCHES Bill Mulrow (pictured), secretary to Go to CrainsNewYork.com Gov. Andrew Cuomo, will discuss the administration’s legislative READ The state Legislature priorities, from major rejected Gov. Andrew Cuomo’s infrastructure projects to raising proposal that utilities pay > the minimum wage to $15, and $375 million to help defray take questions from reporters. the MTA’s cost of moving NEW YORK wires and pipes at transit ATHLETIC CLUB projects. 8 a.m. to 9:30 a.m. ■ Vireo Health of New York, one of five [email protected] firms licensed to sell and produce marijuana products in the state, called Vol. XXXII, No. 12, March 21, 2016—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double Google’s ad policy “inadvertently evil” for issues the weeks of June 27, July 11, July 25, Aug. 8, Aug. 22 and Dec. 19, by Crain Communications Inc., 685 Third Ave., prohibiting cannabis firms from New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send address promoting the drug to patients. changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. For subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. LISTEN to a discussion about working as (GST No. 13676-0444-RT) an artist in New York, featuring painter

MARCH 21, 2016 | CRAIN’S NEW YORK BUSINESS | 3 20160321-NEWS--0004-NAT-CCI-CN_-- 3/18/2016 7:26 PM Page 1

AGENDAWHAT’S NEW MARCH 21, 2016 Mayor’s signature achievement is beneficial but not a game-changer

e were glad to see the tough-talking activists who had been protesting Mayor Bill de Blasio’s housing plan for months do an about-face days before City Council leaders blessed it last week. Everyone agreedW with the crux of the plan, which is to require some affordable apartments in any housing development that benefits from a rezoning. But the opponents wanted so many low-rent units that projects would have been rendered uneconomical, and nothing would have been built. HELP IN HARLEM: An Unable to persuade council leaders, the activists declared themselves affordable-housing project satisfied with a promise from the mayor to study their ideas, which he uptown. The law will set had already decided were impractical. The mayor’s plan will be aside low-rent units in projects helped by approved by the council and signed into law well before that analysis rezoning. happens, rendering it an academic exercise. The plan has always been a balancing act between economic and The city cannot close this gap by mandating affordability. Make the political feasibility. Its signature achievement is the mandate for afford- units’ rent too low and they won’t get built; make them too high and able units, which will help families the 20% of New Yorkers living in who win housing lotteries to rent Make the units’ rent too low and poverty won’t be able to afford them. them. Taller, denser buildings allow The new policy is beneficial, but it’s not for more market-rate apartments to they won’t get built; too high and a game-changer. subsidize those low-rent units. De millions won’t be able to afford them The problem is that despite all the Blasio hailed it as something of a man- calls for alleviating the housing crunch, on-the-moon achievement, but let’s too few New Yorkers want all the con- be realistic: It won’t solve the housing crunch. Not by a long shot. struction required to make a noticeable difference. Amendments to the Under its terms, 10% of a project’s units will be affordable to families mayor’s plan as it went through public review reduced the number of earning 40% of area median income, with an additional 15% of units set units it will generate, making the legislation less historic and more incre- aside for households making 60% of that median. Communities could mental. This is not the mayor’s fault; he did as well as could be expect- also choose an alternative: 20% of units at 40% of the income median. In ed, given public opinion in the city. Until that sentiment changes, the neither case would the 1 million city households that make 30% of the city’s housing costs will decline only if the economy or quality of life median or less make enough money to rent these apartments. does. And nobody wants that. – THE EDITORS

FINE PRINT Since shedding more than 10% of its value in the first month and a half of 2016, the stock market has rebounded so strongly that it’s now slightly up for the year. It took 25 trading days for the market to erase its loss- es. That’s good news for the city, which relies heavily on Wall Street for personal and business tax revenue. The securities industry accounted for 22% of all private-sector wages paid in NYC in 2014.

BY GERALD SCHIFMAN STATS 25 WORDS OR LESS FREE RENT AN UPTICK IN RENTAL apartment vacancies in Manhattan has pushed landlords to offer

incentive packages—though at a lesser rate than during the Great Recession. CITY AND THE Everybody has a Manhattan rental vacancy Average Manhattan apartment “ % rate in December 2015, twice rent in February 2016, a $40 different approach 2.06 the rate from May 2015 $3,482 increase from the year before to management, PORTION OF NEW MANHATTAN RENTALS TO WAIVE THE FIRST MONTH’S RENT OR THE BROKER COMMISSION 60% but this one is way DEC.’09: 59% 50 FEB.’16: 25% too bureaucratic 40

—Former Deputy Mayor Joseph Lhota, 30 on Mayor Bill de Blasio’s “decision memos,” which are marked up and 20 signed by at least eight top officials 10

0 DEC. ’09 DEC. ’10 DEC. ’11 DEC. ’12 DEC. ’13 DEC. ’14 DEC. ’15

BUCK ENNIS ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY SOURCE: Citi Habitats

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AGENDA ICYMI CRAINS EDITOR IN CHIEF Rance Crain publisher, vp Jill R. Kaplan assistant to the publisher Alexis Sinclair, 212.210.0701 EDITORIAL Albany’s fate hinges on editor Jeremy Smerd assistant managing editors Erik Engquist, Hillary, Bernie and The Donald Peter S. Green web editor Amanda Fung copy desk chief Steve Noveck ower in the closely divided state Senate may well art director Carolyn McClain photographer Buck Ennis lie in the now-famous hands of Donald Trump and senior reporters Joe Anuta, Aaron Elstein, Matthew Flamm, Daniel Geiger hinge on the Democrats’ presidential race. reporters Rosa Goldensohn, P Todd Kaminsky Jonathan LaMantia, Caroline Lewis, Democratic Assemblyman , a former Addie Morfoot prosecutor, and Republican Chris McGrath, a lawyer, are data reporter Gerald Schifman web producer Peter D’Amato in a toss-up race for Dean Skelos’ old Nassau County columnist Greg David contributing editors Tom Acitelli, seat. Voter turnout could be decisive in the April 19 spe- Theresa Agovino, Paul Bennett, Barbara Benson,Erik Ipsen, Judith Messina, cial election, which coincides with New York’s presi- Cara S. Trager ADVERTISING dential primary. A Kaminsky win could presage other www.crainsnewyork.com/advertise Democratic Senate triumphs in November, costing advertising director Irene Bar-Am [email protected] or Republicans control of the upper chamber. 212.210.0133 senior account managers “The presidential campaigns could have as much or Zita Doktor, Jill Bottomley Kunkes, Rob Pierce, Stuart Smilowitz even more of an impact as any issue, any advertising that they do on this specific Senate race,” said account managers Jake Musiker Lawrence Levy senior marketing coordinator , executive dean of the National Center for Suburban Studies at Hofstra University. LeAnn Richardson Both Senate candidates should root for a competitive New York primary, consultant Jerry Skurnik sales/events coordinator Ashlee Schuppius 212.210.0282 said. If Hillary Clinton locks down the Democratic bid but Ted Cruz and John Kasich are still fighting [email protected] ONLINE Trump, McGrath would benefit. But “it’s possible at that point that Trump will have it all wrapped up general manager Rosemary Maggiore 212.210.0237 and the Republicans won’t turn out, and it’s possible that [Bernie] Sanders will pick up some states,” [email protected] which would draw Democrats to the polls, Skurnik said. CUSTOM CONTENT director of custom content Trump has boosted GOP turnout, a good sign for McGrath. But the trend might not extend to Long Patty Oppenheimer 212.210.0711 [email protected] Island, said veteran Democratic strategist Bruce Gyory. “The Republican spike in turnout that you’ve EVENTS seen nationally has been driven by small-town, rural and exurban voters,” he said; Nassau County vot- www.crainsnewyork.com/events director of conferences & events ers are more educated and affluent. Courtney Williams, 212.210.0257 [email protected] Yet Trump led handily in a recent poll in the Senate district. Nassau’s Republican chairman endorsed manager of conferences & events him last week, suggesting he believes Trump’s candidacy helps McGrath. — ROSA GOLDENSOHN Adrienne Yee AUDIENCE DEVELOPMENT director of audience & content partnership development DATA POINT Michael O’Connor, 212.210.0738 Public-housing probe Meet Al from Chick-fil-A [email protected] The city has submitted millions of NEW YORK STATE’S ANTI-ZIKA Al Puglisi, a Florida Chick-fil-A fran- CRAIN’S 5BOROS www.5boros.com documents to federal prosecutors EFFORTS INVOLVE DISTRIBUTING chise owner for 11 years, was revealed Irene Bar-Am, 212.210.0133 investigating health and safety con- to be the man behind the city’s sec- [email protected] ditions, including possible lead con- 20,000 “PROTECTION KITS” ond outpost of the fried-chicken SPECIAL PROJECTS tamination, at public housing and sandwich chain. “We joked that the manager Alexis Sinclair 212.210.0701 AND 100,000 LARVICIDE TABLETS [email protected] homeless shelters. Authorities are majority of my clientele in Florida TO WOMEN WHO LIVE IN REPRINTS also looking into whether the finan- were people from New York,” he reprint account executive Krista Bora 212.210.0750 cially strapped New York City THE METROPOLITAN AREA said. The restaurant, on West 46th PRODUCTION Housing Authority, which has strug- Street and Sixth Avenue, will employ production and pre-press director gled to keep up with repairs at its 200 people and open April 2. Simone Pryce media services manager Nicole Spell properties, reported problems to fed- – AMANDA FUNG SUBSCRIPTION CUSTOMER SERVICE eral authorities. The probe began last North American business when www.crainsnewyork.com/subscribe fall but has only just come to light. Cerberus Capital Management [email protected] 877-824-9379 (in the U.S. and Canada). acquired a majority stake in the $3.00 a copy for the print edition; or $99.95 Mayor shuts fundraising arm division. Avon was founded in New one year, $179.95 two years, for print subscriptions with digital access. Mayor Bill de Blasio has begun York 130 years ago. to contact the newsroom: winding down Campaign for One www.crainsnewyork.com/staff New York, a nonprofit that was CBS to drop radio 685 Third Ave., New York, NY 10017-4024 phone: 212-210-0100 fax: 212-210-0799 advancing his political agenda. The CBS Corp. is exploring the sale or Entire contents ©copyright 2016 group was not bound by city cam- spinoff of its radio business, CEO Crain Communications Inc. All rights reserved. ®CityBusiness is a registered paign finance laws and could accept Leslie Moonves revealed during an trademark of MCP Inc., used under license unlimited contributions from investor conference. In the fourth Dining with Fido agreement. donors. A few weeks ago, a watch- quarter, advertising revenue for the CRAIN COMMUNICATIONS INC. A new state law allowing dogs to BOARD OF DIRECTORS dog group called for the nonprofit division fell 5% and CBS took a $454 accompany their owners at chairman Keith E. Crain to be investigated. million charge, reflecting the value restaurants with outdoor seating president Rance Crain of its broadcast licenses. The media treasurer Mary Kay Crain, Cindi Crain will take effect in 30 days. Dogs executive vp, operations William Morrow Avon goes overseas giant owns 117 radio stations in 26 will have to be licensed and executive vp, director of strategic To cut costs, Avon Products Inc. U.S. markets. operations Chris Crain vaccinated against rabies, but the executive vp, director of corporate plans to slash 2,500 jobs and move city backed off a plan to make operations K.C. Crain its midtown Manhattan headquar- CUNY review senior vp, group publisher David Klein eateries check pets’ papers. “I’m ters to the U.K. The relocation will The Cuomo administration will vp/production, manufacturing David Kamis so pleased that the City chief financial officer Thomas Stevens generate one-time expenses of appoint a “management organization chief information officer Anthony DiPonio Department of Health threw dog about $60 million in the first quar- expert” to restructure the back-office founder G.D. Crain Jr. [1885-1973] lovers a bone,” said ter. The cosmetics company expects and executive functions of the City chairman Mrs. G.D. Crain Jr. [1911-1996] secretary Merrilee Crain [1942-2012] savings of as much as $70 million University of New York. The expert Assemblywoman Linda Rosenthal, from the job cuts by the end of 2017. will come up with a plan to present to who sponsored the law.

GETTYIMAGES, NEWS BLOOMBERG Earlier this month, Avon split its the state for the next budget.

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AGENDA TRANSPORTATION

BOAT LAUNCH: If annual ridership is 4.6 million, the city subsidy will Ferry riders to pay subway-like exceed $6 per ride. fares thanks to heavy subsidy City Hall says low prices are intended to create ‘transit equity’ BY ERIK ENGQUIST

ides on the subway riders do. But cost, while Metro-North pay 65% to 75%, accord- city’s new the city’s new ferry- riders pay 59%, according to the Straphangers ferry routes system riders will pay ing to 2012 data. Campaign. The latter get all the data they istration said the LIRR announced even less—just 29% of City bus riders pay number might be even need to reliably calcu- per-ride subsidy is $8 Rlast week will cost the cost. LIRR cus- about 40% of the actual higher, as watchdogs late it. and the express-bus passengers the same tomers pay 48% of the cost and subway riders have never been able to The de Blasio admin- subsidy is $15. Ⅲ amount as a subway fare, yet will be far more heavily subsidized. Assuming annual ridership reaches the de Blasio administration’s predicted 4.6 million, the subsidy will be $6.60 per trip. Deputy Mayor Alicia Glen emphasized that Carine Joannou PRESIDENT $6.60 is a lower subsidy JAMIS BICYCLES than some train routes and express buses get. But Glen was refer- ring to the Long Island Rail Road, not the subway or regular bus system. Metro-North, LIRR and express-bus passengers pay fares higher than the $2.75 that bus and subway riders pay for a single trip. The commuter- rail passengers pay Steering her more because they benefit from per-ride subsidies several times company forward. greater than subway riders get. A rush-hour ticket from Bayside, Queens, to Penn Station on the LIRR costs $10 if purchased in advance and Understanding $16 if purchased on board, for example. “We aren’t going to what’s important. create more transit equity with $10 fares,” a de Blasio spokesman said. “If we want to serve working New Yorkers in underserved Honoring her father’s legacy has been a priority for Carine since taking over Jamis Bicycles. And she’s done just that, neighborhoods, we steadily growing the company. So when it came time to choose a new bank, she wanted a financial partner that could must keep fares low help her continue to succeed. Carine found that in M&T Bank. We’ve put in the time to truly understand both her company and affordable. We are committed to transit and the biking industry to determine what Jamis needs to keep moving ahead. To learn how M&T can help your business, equity, and it’s an visit mtb.com/commercial. investment we will gladly make.” Given the low fares, the high subsidy is necessary because some of the routes are far-flung, notably one serving the Rockaways. Even with higher DEPOSITORY AND LENDING SOLUTIONS | TREASURY MANAGEMENT | MERCHANT SERVICES | COMMERCIAL CARD fares, LIRR riders pay a much smaller per- centage of the actual Equal Housing Lender. ©2016 M&T Bank. Member FDIC.

ED REED, MAYORAL PHOTOGRAPHY OFFICE cost of their ride than

MARCH 21, 2016 | CRAIN’S NEW YORK BUSINESS | 7 20160321-NEWS--0008-NAT-CCI-CN_-- 3/18/2016 4:11 PM Page 1

AGENDA ASKED & ANSWERED REAL ESTATE INTERVIEW BY JOE ANUTA

JESSICA YAGER NYU Furman Center

n January, Jessica Yager was tapped to lead the NYU Creating Furman Center for Real Estate and Urban Policy, a “subsidized nonprofit that brings some sanity to heated debates apartments about housing by providing objective research. Her doesn’t undermine Iappointment came as rising rents, new construction and demographic changes across the city have angered locals and housing values or led to proposals from elected officials to make housing more increase crime, affordable.The reasons behind the city’s shifting landscape—and which is a fear the potential impact of measures to address it—can be complex communities and counterintuitive.That’s why the Furman Center’s insights are sometimes have so important.

What conclusions have you reached that run contrary to popular opinion? One key finding is that creating subsidized apartments or homes in a neighborhood doesn’t undermine housing values or increase crime, which is a fear that communities sometimes have. We’ve also looked at how density has changed in the city over time using different measures, and we found that the typical New Yorker today is living in a less dense neighborhood than in 1970. That was a surprising finding that helped put some of the debate in an interesting context.

How would you sum up the housing challenges faced by New York City? There is unprecedented demand for housing right now at all DOSSIER income levels, and in a city that has been built out and up for a WHO SHE IS Executive director long time, that demand is hard to meet. of the NYU Furman Center for Real Estate and Urban Policy How do you decide what to study? All of our work relates to policy questions. So a major test for us AGE 39 is, do we think we can produce work helpful to policymakers and BORN Los Angeles practitioners? Another litmus test is, is this a topic where, given RESIDES Brooklyn our skills, we have the ability to make a contribution? EDUCATION Wesleyan University, B.A. in government; Why do you think the center’s work is important? New York University, J.D. It is hard to craft good policy without specific information about RÉSUMÉ Yager spent her what is happening. And the issues at stake are often really postcollege years as a complex. Certainly I think there is a lot you can know without paralegal helping New empirical evidence, and there are other types of information that Yorkers with disabilities get can and should go into public policy. But understanding what the government benefits. After data says is important to fully understanding what is happening law school, she worked as on the ground and creating an effective solution. a housing and criminal- defense lawyer representing low-income What are some of the things you are studying now? New Yorkers. We are spending a lot of time looking at what happens to existing households when rents start to rise. Do they stay and BIG SHOES Yager follows in the footsteps of Vicki Been, pay more? Do they move? Do all gentrifying neighborhoods the former faculty director eventually become high-income communities, or do some of the Furman Center, who become income-diverse? We are also investigating whether went on leave in 2014 to improved building conditions lead to better school or health become the de Blasio outcomes. Looking at how housing programs can make a administration’s difference in people’s lives is a long-term interest of ours. affordable-housing czar. How else do you try to affect the way policy is crafted?

BUCK ENNIS Part of our mission is to bring people together to have debates about pressing policy issues. We are doing that right now on housing and school segregation with an online [essay] series, The Dream Revisited. We also hold events throughout the year where we bring stakeholders together to talk through tough issues.

Why are you attracted to this sort of work? The housing we live in, and its stability, shapes our lives in profound ways. Given the challenges the city faces, it is very compelling. I feel very lucky to be able to spend my time on it. Ⅲ

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AGENDA HEALTH CARE

Unhealthiest borough? The Bronx, again

Gains have been made nonetheless BY JONATHAN LAMANTIA

he Bronx once Committee Chair Whalen. “They didn’t an exit strategy. again ranked Richard Gottfried. feel the energy was Without access to pri- as the state’s The Cuomo adminis- worth it this year to put it vate equity, hospitals unhealthiest tration is “just tired of forward.” remain thirsty for invest- Tcounty in an annual list beating their head Some hospitals share ment. The Senate and ASTHMATIC KIDS: Children in the Bronx published last week. against the wall,” said concerns with Gottfried Assembly have ear- suffer disproportionately “When you talk Healthcare Association over how firms would marked about $200 mil- from the illness. about the social deter- of New York State generate a return on lion for health care capital minants of health—the President Dennis investment and devise projects. Ⅲ things that affect people’s lives that make them end up in the hospital—there’s no getting around those dis- parities and how they affect kids, families and whole communities,” said Dr. Daniel Stephens, director of adolescent medicine at the Union Community Health Center in the borough’s Fordham Heights section. The childhood poverty rate in the Bronx was 43% in 2014 (the most recent year for which data were available), almost double the statewide average. Unemployment remains higher and the high-school graduation rate is lower than in RETENT ON most other counties. But there are signs of improvement. Bronxites are living longer; sexually trans- mitted infections and preventable hospital- izations are down. The borough’s progress gar- nered recognition from the Robert Wood Johnson Foundation, which published the ranking with the University of Wisconsin Population Health Institute. The foundation gave the borough its $25,000 Culture of Health award last October for projects such as encouraging Offer the right benefits. Keep employees at their best. bodegas to sell healthy At Aflac, we know building your business starts with keeping your best employees. food and for building Which is why we help with costs not covered by major medical insurance and pay more green spaces. Ⅲ your employees directly. And with One Day Pay,SM we make it a priority to pay claims Cooling on private equity as fast as possible — in 2015, Aflac paid 1.2 million One Day PaySM claims. All so your See what Aflac can do for Gov. Andrew Cuomo’s employees and business can stay focused on success. executive budget this your business at aflac.com/retention year does not call for legislation allowing pri- *Aflac pays policyholders directly, unless otherwise assigned. **One Day PaySM available for most properly documented, individual claims submitted online through Aflac SmartClaim® by 3 p.m. ET. vate-equity investment Aflac SmartClaim® not available on the following: Disability, Life, Vision, Dental, Medicare Supplement, Long-Term Care/Home Health Care, Aflac Plus Rider, Specified Disease Rider and Group in hospitals, as it had for policies. Aflac processes most other claims in about four days. Processing time is based on business days after all required documentation needed to render a decision is received and no further validation and/or research is required. Individual Company Statistic, 2015. Individual coverage is underwritten by American Family Life Assurance Company of Columbus. the previous three In New York, individual coverage is underwritten by American Family Life Assurance Company of New York. Worldwide Headquarters | 1932 Wynnton Road I Columbus, GA 31999. years. The measure has Z160117 3/16 repeatedly failed to win

IRINA IVANOVA over Assembly Health

MARCH 21, 2016 | CRAIN’S NEW YORK BUSINESS | 9 20160321-NEWS--0010-NAT-CCI-CN_-- 3/18/2016 4:02 PM Page 1

AGENDA REAL ESTATE

Rumble at REBNY Developers Ross, Speyer nearly come to blows over 421-a BY DANIEL GEIGER

hen it comes to the billions of dollars argued over the 421-a tax exemption, which devel- for months to negotiate a deal before the 421-a pro- to be made in New York’s real estate opers say they need to build affordable housing as gram expired. Speyer was infuriated by the remark. industry, some things are worth part of Mayor Bill de Blasio’s signature housing ini- After the meeting was adjourned, Speyer fighting for. tiative. The program expired Jan. 1 after the real marched over to Ross, and as the pair began arguing, WTwo of the city’s biggest landlords nearly came to estate industry refused construction unions’ demand Ross jumped out of his seat. blows at a recent meeting of some of the most pow- that workers on projects built with the tax break get “This isn’t the NFL,” screamed Ross, who owns erful figures in the real estate higher wages. the Miami Dolphins. “I’m not going to be pushed industry, according to several At a meeting of the Real Estate around.” executives who were present. Board of New York’s executive Leonard Boxer, a real estate attorney with law According to witnesses who committee, a who’s who of firm Stroock & Stroock & Lavan who had been sitting spoke on the condition of landlords and top executives, next to Ross, jumped between Ross and Speyer, sep- anonymity, Rob Speyer, 46, the Speyer asked if anyone in the arating the pair. Several attendees said the con- president and CEO of Tishman room wanted to rekindle negoti- frontation appeared as though it could get physical. Speyer, which owns the Chrysler ations with the unions to try to “I’ve never seen anything like it,” said one eye- Building and Rockefeller Center, hammer out an agreement and witness. got into a heated exchange March reinstate the program. Ross About 15 minutes later, Ross and Speyer appeared 8 with Stephen Ross, 75, the chairman of the Related objected, said several people present. to bury the hatchet on the street outside REBNY’s Cos., which is building a $20 billion mixed-use com- “Only you” want to restart the talks, Ross said to headquarters at 570 Lexington Ave., where witness- plex in Hudson Yards. Speyer, according to three witnesses. Speyer, es said they saw the pair chatting and embracing. The cause of the tiff? Witnesses said the two REBNY’s chairman for the past three years, had tried “REBNY meetings often feature passionate and frank exchanges, especially on issues as important as the future of affordable housing in New York City,” Ross and Speyer said in a joint statement. “And at the end, we always depart as friends and respected col- leagues. Our most recent meeting was no different.” The incident highlights how contentious the tax break has become. Real estate executives say the higher wages that unions want would wipe out the savings they would get from the tax break, which can be used to subsidize affordable apartments. Ross’ Related Cos. is planning thousands of residential units at Hudson Yards, which are likely to be a mix of condominiums and rentals. Paying higher wages to construction workers could cut its profits. Ⅲ

Absence of tax break hampers mayor’s plan

REAL ESTATE GROUPS say Mayor Bill de Blasio’s rezoning and housing plans that passed out of committee in the City Council last week won’t create nearly as many affordable units as forecast unless the state renews the controversial 421-a property-tax break for developers that expired Jan. 1. Mandatory inclusionary housing “still works without it, but it doesn’t work as well,” Councilman David Greenfield told The New York Times. The 421-a program exempted developers from property taxes on new buildings for up to 25 years, saving them a combined $1 billion a year. A New York University study last year showed that in many areas of the city, the exemption was needed to make new rental projects financially feasible. New York City rentals need the subsidy because of the unique way the business is done here. Rental buildings are taxed differently from condominiums or single-family homes. In higher-income neighborhoods, this favors condo builders, who can pay more for land and outbid rental developers. The exemption helped rectify the discrepancy. Land costs in New York City are among the highest in the nation. Construction costs are also higher than elsewhere, rising last year at double the national average, the New York Building Congress noted in a study last week. Even if land were free, rents in some parts of the city would still not be enough to make a rental project viable. The mayor’s plan now goes to the entire City Council for a vote this week.

TISHMAN SPEYER, BUCK ENNIS — JOE ANUTA

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AGENDA WHO OWNS THE BLOCK REAL ESTATE

9 DEKALB AVENUE Crossroads of Brooklyn rising high A spate of purchases around DeKalb Avenue heralds more skyscrapers

BY TOM ACITELLI 9 DEKALB AVE.

An LLC controlled by JDS Development and the Chetrit round the new year, a joint ven- Group acquired the 121,500-square-foot building in ture of JDS Development and the December 2015 for $90 million. The seller was Chetrit Group filed plans with the JPMorgan Chase, which used the landmarked Brooklyn Dime Savings Bank building as a branch. 547, 551 AND 553 FULTON ST. city to build a 1,066-foot tower at RedSky Capital bought these three contiguous A9 DeKalb Ave. in downtown Brooklyn. The buildings in August 2015 for a combined 73-story tower would be by far the $24.35 million. No. 551 is a three-story, 4,788- tallest building in the borough, nearly 559-563 FULTON ST. square-foot building that generated $245,560 in 2015. No. 553 is a three-story, 5,208-square-foot twice as tall as the reigning spire, the An LLC at the Long Island address of the commercial building that grossed $257,330 in 596-foot AVA DoBro apartment buildings’ management company, 2015. No. 547, also known as 2 DeKalb Ave., is a Barberry Rose, owns these buildings. tower at 100 Willoughby St. three-story, 8,452-square-foot commercial building Barberry founder Herbert Barbanel has that made $451,620 last year. RedSky owns at The city has yet to green-light the been a Brooklyn real estate fixture for least 10 of the 16 buildings on the block through tower, which requires landmark more than four decades. The four-story, different entities. 34,827-square-foot commercial building approval because it would involve at 563 Fulton St. sold in January 2012 significant changes to the historic for $600,000. Since then, Brooklyn Dime Savings Bank build- $5.5 million in two separate mortgages have been taken on the building. It gen- ing at 9 DeKalb. 565 FULTON ST. erated $1.04 million in gross revenue in Still, the proposed tower is anoth- 2014. The four-story, 13,903-square-foot RedSky Capital bought this four-story, 9,601-square-foot er sign of the changes underway in 559 Fulton St. generated $452,780 in commercial building in November 2012 for $6.38 million downtown Brooklyn. In early gross revenue the same year. According through an LLC. The owner made $230,440 from it in to Barberry Rose, the buildings are 2015, before expenses, up from $218,570 in 2014. November 2015, the city and devel- fully rented. oper JEMB Realty announced plans for a 600-foot office building at 420 Albee Square. It will—for a while, at least—be Brooklyn’s tallest building and the first commercial building of any significance since the area was rezoned in 2004. These trophy towers are spurring interest from investors hoping to capitalize on the residents and businesses that will fill them, said Derek Bestreich, president of Bestreich Realty Group, a commercial brokerage in the borough. Downtown has long lagged such Brooklyn neighborhoods as Williamsburg and Greenpoint for attention from developers and investors. One early arrival is RedSky Capital, a Dumbo-based investment firm. Since 2012, it has bought at least 10 of the 16 small commercial buildings across from the 9 DeKalb Ave. site: Nos. 547, 548, 549, 551, 553, 565, 573, 575 and 585 Fulton; and 396 Flatbush Ave. Extension. Several of the buildings are contiguous, suggesting that RedSky is assembling them for its own large-scale development. The firm did not respond to requests for comment. RedSky is unlikely to be the last investor to buy multiple properties in downtown Brooklyn with an eye toward perhaps building big. “The scale attracts developers,” Bestreich said of the neighborhood. “It’s a place in New York where developers can build sizable properties.” Ⅲ AINCNT COSTAR OASISNYC.NET,

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AGENDA VIEWPOINTS

mental way—no matter whether the Billionaires don’t pay End of the luxury boom developers find their profits evapo- rating or even wind up in bankrupt- city, state and, in most is little cause for concern cy. No one needs to be sympathetic cases, federal income to the owners of Picassos, either. The city’s economy does not depend on the 1% of the 1% Let’s start with those suddenly- taxes because they no-longer-in-demand condos, don’t spend at least six which target the 1% of the 1%, notes CRAIN’S REPORTED these super-expensive units have Cushman & Wakefield economist Ken months of the year last week that the had to cut rents, in some cases McCarthy. Superluxury is a very small in New York superluxury condo sharply, to lure tenants—though slice of a very large market. market has again the average is a pretty impres- Even if the “cracking” turns into “cracked,” with the sive $8,000 a month. something worse, the impact will be out of the country for the required average sale price James Stewart notes in The New delayed, adds Jonathan Miller of real 183 days. declining 15% in the York Times that real estate is far from estate consultancy Miller Samuel. The key point is that New Yorkers past year or so— the only asset targeted Many of the units that have often have a false impression of who GREG DAVID although down to a toward the ultrarich that been sold in the soaring towers makes up the 1%. It’s not the über- still-stratospheric is declining. Art sales at near Central Park won’t close wealthy. To be in the 1% in New York $7 million. Vornado Realty Trust auction houses Christie’s 37K until the buildings are com- City required an income of $637,000 wouldn’t tell investors about sales and Sotheby’s have HOUSEHOLDS pleted, so the city will continue in 2013, according to the latest analy- activity at its Billionaires’ Row proj- declined by as much as pay nearly half to collect transaction taxes for sis from the Independent Budget ect on Central Park South, which is 50%; a Singapore investor of the city’s two years, maybe more. Office. This group—which is com- never a good sign. One developer is sold a Picasso recently at a income tax By the way, declines in tax posed of 37,000 taxpayers—pays cutting in half the upper floors of his loss of $13 million; and revenue from this cooling trend about half of all the city’s income tax. condo project to make the units vintage automobiles are no longer will be minimal. These billionaires It will be time to worry about the more reasonably priced, whatever in demand. don’t pay city, state and, in most economy when the 1%—not the 1% that means. The obvious question is whether cases, federal income taxes because of the 1%—show signs of strain. Ⅲ Bloomberg News found that the the end of the luxury boom will hurt they make sure they don’t spend six cost of renting a luxury apartment is the New York City economy. The months of the year in New York. GREG DAVID blogs regularly at also falling, as investors who bought answer is, clearly not in any funda- Foreign buyers make sure they are CrainsNewYork.com.

STRIKING: The train station’s $4 billion New transit hub a fiasco? cost was criticized, but the writer calls its The crowds say otherwise architecture priceless. Calatrava’s Oculus will be known for its magnificence,not its price tag BY GINA POLLARA

ew York City finally has a the sidelines to address us and point new transit hub worthy out some detail they thought of this city’s stature on deserved our notice. These conver- the international stage. sations astounded me, both because NDespite all the criticism regarding they were completely unexpected the construction timeline and cost and because of the sense of owner- overruns, Santiago Calatrava has ship, enthusiasm and pride each delivered an extraordinary piece of person expressed. architecture; the care and artistry Great architecture fundamental- construction delays to obscure what The Calatrava PATH station also with which the Oculus was envi- ly changes the way we relate to has been achieved: How many people reminds us that the proper recon- sioned, then executed, are visible in each other. Rather than scurry remember that Grand Central struction of Penn Station is long every detail. No wonder it has through a space, as we do at the Terminal, now just over 100 years overdue. Imagine the opportunity already become a tourist destination. spirit-crushing Penn Station, not old, cost more than was originally before us, in a station serving But, more important, the station wanting to spend a second more estimated? How many millions pause 650,000 people daily. In reconsid- serves as a reminder of what great than necessary, at the Oculus we on their daily commute to marvel at ering what Penn Station might be, architecture delivers to the people want to linger, to marvel and to its vaulted ceiling, its shafts of light, we should strive for what is best, it serves. It is everything, for share our experience with one its heavenly bodies painted over- not settle for half-measures because instance, that the current Penn another. Great architecture inspires head? When done well, public works of the complexity of the task and Station is not. us to be better, to ourselves and to connect to the public heart. the inevitable cost. On a recent evening tour, a fellow each other. On such an emotionally charged New York is home to visionary architect and I openly marveled at As far as the critiques, yes, every site, one that has seen so much builders and gifted craftsmen; if they the craft of the construction: the public project has a paramount destruction and so much pain, the are allowed to bring forth what lies tight joints between the marble tiles, responsibility to exercise great Oculus stands as a cathedral, a in their imaginations, millions of the beautifully returned baseboards, restraint when it comes to spending sacred, light-filled space within travelers can be uplifted and inspired the ingenious stonework at compli- taxpayer funds, and not only which the eye is drawn upward, by their daily journey. In this great cated intersections, the mirror- because they are in short supply. and the level of human interaction city, we are blessed with talent and smooth surface of the marble tile wall However, it is an unfortunate fact is inevitably elevated. Its soaring ability to spare. Calatrava’s creation in the grand hallway that connects that the building process as it is wings, its shafts of shimmering is proof of that. Now we just need a the PATH to Brookfield Place, and currently practiced invites such light, the ingenuity of its construc- collective commitment to under- the careful placement of the exit cost overruns, because the selection tion lift the spirit of everyone who standing that great architecture signs and fire alarms. process often considers cost above passes through its halls. Great pub- enriches all our lives. ■ As we admired the construction many other factors and awards the lic architecture is great public and design, we were joined by job to the lowest bidder. wealth. And it is hard to assign a Gina Pollara is president of the

BLOOMBERG many workers who stepped from But let’s not allow the inevitable price to that kind of asset. Municipal Art Society of New York.

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AGENDA VIEWPOINTS

Education early educators is crucial THIS IS A GREAT way for governments to The mayor’s sweet deal to achieving the goals of universal lower costs—by putting employees on Readers opine on low property taxes and teacher salaries pre-K in New York City, as well as the Wal-Mart and McDonald’s path of the city’s goals of providing good, eligibility for food stamps and living-wage jobs to its residents. Medicaid. IT IS AN OUTRAGE that the mayor’s fact, they make up more than half Salary parity also has a profound TED LEIBOWITZ yearly property assessment is less of the city’s universal pre-K system multiplier effect, as children benefit than a month’s rental income on and provide high-quality services from program quality and their par- CRAIN’S WELCOMES SUBMISSIONS to its his Park Slope home (“A tale of two to infants, toddlers and 3-year- ents from a resource that supports opinion pages. Send letters to [email protected]. Send op- taxpayers,” March 7). The de olds, reaching children from low- workforce participation. Salary parity eds to [email protected]. Blasios are getting over $5,000 a income communities across the must be a city priority. Please include the writer’s name, month in rent! city. JENNIFER MARCH company, address and phone number. To be considered for the print edition, The mayor went up to Albany and Salary parity between communi- Executive director opinion pieces should not exceed 550 whined for hours about how capping ty-based and Department of Citizens’ Committee for Children of New York words. property-tax increases would cripple the city. Meanwhile, aside from his sweet deal, there are million-dollar co-ops with 20-year abate- ments all over the city. Why don’t those who can afford million-dollar co-ops have to pay taxes for 20 years? It is an utter disgrace. PEGGY DABROCCIO PRE-K PARITY Thinking about The educators seeking salary parity are your business is teachers and support staff at community- based organizations a big part of ours. contracted with the city’s Administration for Children’s Services—not “pri- PUT OUR TAILORED INSIGHTS TO WORK FOR YOU. vate schools” (“Stop subsidizing pay for To make confident decisions about the future, middle market private-sector work- leaders need a different kind of advisor. One who starts by ers,” March 14). The understanding where you want to go and then brings the comparison with bus ideas and insights of an experienced global team to help drivers is misplaced. get you there. The early-childhood Experience the power of being understood. educators make sig- Experience RSM. nificantly less than rsm us.com those at the Department of Education, who per- form the same jobs with the same cre- dentials. While salaries are issued through the nonprofit organizations, the city sets the contract amounts and thus determines what the organizations can pay to teachers. It’s the city that is responsible for allocating the budget for this salary increase, so it is the city that has the power to right this wrong. These nonprofit RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax and consulting firms. Visit rsmus.com/aboutus for more information regarding RSM US LLP and RSM International. teachers are the backbone of the early-childhood education system in McGladrey is now RSM. Learn more about our unified global network at rsmus.com/mcgladrey New York City. In

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AGENDA THE LIST NY AREA’S LARGEST M.B.A. PROGRAMS Ranked by total enrollment

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SMALL BUSINESS |MAKING IT AS AN ARTIST

To survive as an artist t took Deshawn Dumas a decade to make a single significant sale. In 2015, a gallery representing the now-32-year-old visual artist sold three of his bold, colorful abstract paintings takes a lot (see above), that feature quotes from Enlightenment thinkers. but it’s not impossible. Peggy Cooper Cafritz, an influential collector and former president of the D.C. Board of Education, purchased one called Till the summer in the city (Get Free). Here’s how some Dumas netted about $25,000 for the works. He estimates that he broke even after accounting New Yorkers make it for labor and materials, but he feels his career is gaining momentum. “This is the first time where I have a market, sort of,” he said over beer in the apartment in Clinton Hill, Brooklyn, that doubles as ILLUSTRATION BY WILLIAM POWHIDA ILLUSTRATION STORIES BY NOAH DAVIS I CONTINUED ON PAGE 16

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SMALL BUSINESS | MAKING IT AS AN ARTIST

his studio. THE RECENT GRAD Dumas credits the recent upturn in his financial fortunes to a very deliberate change in his FROM DEC. 12, 2012, to Aug. 26, 2013, Gail Victoria Braddock Quagliata photographed every bodega artistic identity. After answering a 2015 open in Manhattan, a project that earned her write-ups in The Wall Street Journal, The Village Voice and other call from a gallery seeking paintings in the style publications, but little financial benefit. “It’s gotten me a lot of speaking engagements and opportunities of Jean-Michel Basquiat and Cy Twombly, to interact with community members more than arts patrons, which has been amazing and unexpected, Dumas created a few works that captured the but I don’t have a book deal, despite trying really hard,” the 2012 Pratt graduate said in the Bushwick apartment she shares with her husband, who edits television commercials, and her cat, Optimus Prime. same feeling those two artists evoked, while adding his personal spin. A framed copy of the Journal article hangs on the wall of the overflowing eight-foot-square room For the first time, he started to take the between the kitchen and bedroom that she uses as a studio. Quagliata, 35, usually teaches photography desires of the market into account when creat- and filmmaking classes at afterschool programs in Brooklyn high schools to pay the bills, although she’s ing his works. “I had to make an adjustment taking a semester off to focus on her art. She spends a couple of hours a day applying for grants. She does most of her projects digitally because she can only afford the printing costs when someone buys a between my idealism and the reality of the photograph for $50 to $175 off her website. “If I could make $30,000 a year on prints, I would be like, I thing I was producing,” he said. “I have to don’t need to teach,” she said. navigate that difference between me and the audience, the people, the discourse and the Quagliata knows of only one person from her graduating class who makes a living as a full-time artist, market.” and “to be fair, he runs a residency.” Still, she stays positive: “It’s only been four years. So I’m OK. People need five years to be the emerging artist, and 10 years to be the moderately established artist.” Although he wasn’t accepted to that show, the paintings caught the eye of gallerist Ethan Cohen, who focuses on emerging artists and was an early patron of Chinese artist Ai Weiwei. Cohen put one of Dumas’ works into another exhibition, and brought three of his paintings, including Till the summer, to Context in Miami, a show for emerging artists that runs concurrent- ly with Art Basel. All three of the 80- by 48-inch pieces sold to people whom Cohen considers “important collectors.” Cohen also bought four 24- by 18- inch works directly from Dumas. “I didn’t start seeing rewards until I started thinking about the market in relation to the academic discourse on art,” said Dumas, a recent graduate of Brooklyn’s Pratt Institute, where he earned a dual master’s degree in fine arts and the history of art and design. GAIL QUAGLIATA: Photographing Art is a cornerstone of moneyed society in delis doesn’t pay the rent. New York, with pieces regularly selling for millions of dollars. But most artists rarely see any of this bounty, making it harder for them to afford to live and work here. There is, however, a way lector Liu Yiqian (who put the charge on his “A little bit of activity for a lot of people puts to make it. The key for many artists is to think American Express black card), it can be easier to out this carrot that there’s something commer- as much about the market as the art. sell a painting for $1 million than for $1,000. cially viable about it, but if you’re selling That’s what Dumas is trying to do as he “The art market is all about millions of $20,000 of art a year, that’s not anything grapples with the reality that today’s art world dollars that maybe two [artists] get,” said remotely sustainable to live on in New York is increasingly market-driven: A few well- Rhonda Schaller, who, as director of the Pratt City,” said Powhida. known artists create specific genres of paintings Institute’s Center for Career & Professional Still, getting a piece of that 80% is what (or have their assistants produce the work), and Development, is tasked with ensuring that the Dumas and his fellow visual artists aspire to. the galleries that sell those pieces earn the vast school’s graduates can survive financially after And for that, as Dumas discovered, it’s as much majority of the money. about giving the market what it Almost everyone else loses. wants as it is about executing an “The attractiveness of the idea “IFYOU’RE SELLING $20,000 OFART artistic vision. And what the of being an ‘artists’ artist’ who, market wants is art that comes while just scraping by financially, AYEAR,THAT’S NOTANYTHING with a star and a story. In fact, steadily produces work that is REMOTELYSUSTAINABLE TO LIVE ON last year, United Talent Agency respected mostly or only by hired Joshua Roth, whom New his/her peers, has almost disap- IN NEWYORK CITY” York magazine called “the Ari peared,” longtime Newsweek crit- Gold of the art world,” to launch ic Peter Plagens said. “Nowadays, a fine-arts division with the it’s more stardom or bust.” they earn a degree. Pratt now offers courses and express purpose of finding and marketing new Cohen said that although Dumas’ works cur- seminars detailing ways to make money as an visual-art stars. rently sell for less than $20,000 each, emerging artist through teaching, grants and other “There’s a movement going on with the artists can eventually sell larger paintings for means. personality of artists,” former gallery owner $50,000. Dumas’ plan calls for building his and consultant Andi Potamkin said. Her clients market slowly and steadily. Cohen hopes to take speech and improv classes to sell them- give Dumas a solo show, from which “you could ILLIAM POWHIDA, 39, an artist whose selves along with their work. Cohen cited expect sales of $100,000,” split 50-50 between work comments on the schism Dumas’ ability to explain what goes into his gallery and artist. W between superstar and working-class paintings as a positive factor. He has a presence Dumas hopes to make $60,000 to $70,000 a artists, says 80% of artists are making about and “a convincing story,” the gallerist said. year, and said that’s an attainable goal in 2017. 20% of the money. Artists get about half the “He’s African-American, well educated, [and a] “The goal is to make a brand that’s recogniza- sale price for works sold in a gallery, and high-achieving individual who decided that art ble,” the artist said. “When you see a piece, you usually nothing from resales in the private was his calling.” know it’s a Dumas. That’s something I’m inter- market or at auction houses, where the sky- Ryder Ripps, 29, could become that art- ested in realizing in the next two years.” high prices reward earlier collectors, not the world star. Called “the consummate Internet As visual art becomes an asset class and creators. The other 80% of the income, possibly cool kid” in a 2014 New York Times story—an Christie’s sells Modigliani’s 1917 Nu couché for a more, goes to a small fraction of artists, and epithet that has followed him in nearly every

BUCK ENNIS record $170.4 million to billionaire Chinese col- even they make nothing from resales. subsequent profile—he gained notoriety for

16 | CRAIN’S NEW YORK BUSINESS | MARCH 21, 2016 20160321-NEWS--0016,0017-NAT-CCI-CN_-- 3/18/2016 3:08 PM Page 2

ART WORK

“Ho,” his first solo exhibition. In enough to pay rent for a few Most artists will never see a $10,000 pay- the 2015 show at Postmasters 50% months when he sold the paint- check for an individual sale. Painter Mario Gallery in TriBeCa, he produced THE COMMISSION that ing. But the auction market for Naves, 54, pays his bills by teaching six classes large paintings of distorted images galleries take on an Smith’s work collapsed just as a semester in drawing, painting and design at from the Instagram feed of model artwork’s sale price quickly as it exploded. In Hofstra University, Brooklyn College and Pratt Adrianne Ho. November 2014, his When a Man Institute. He also writes art criticism for publi- Response was mixed, with some Loves a Woman didn’t draw a bid cations including The Wall Street Journal and The reviewers calling it a cheap stunt, at a Phillips auction. New Criterion. When he was younger, he and others appreciating the com- That’s a typical trajectory for a worked in construction so he could afford to mentary on the rapid, transactional $40K young artist thrust into the spot- paint. world of social media. The attention PRICE of a solid-gold light. “The faster you burn, the He is represented by the Elizabeth Harris elevated Ripps’ profile, and he said statue of Pepe the Frog harder it can be to sustain,” said Gallery, a well-respected Chelsea shop, where his that eight of the 12 paintings sold by artist Ryder Ripps Bill Powers, founder of Half abstract, geometric works sell for $3,000 to for about $12,000 each. Gallery on the Upper East Side, $5,000 each. He sells a few paintings a year but The show didn’t make Ripps which hosted an early show by views any revenue that comes from his art as a rich. His main source of income is Smith. “Everyone is so quick to bonus. He paints because he’s driven to do it. “If OKFocus, a creative agency he pile on or declare something I looked at my expenses over the last 25 years, I’d founded that has worked with $750 over. There’s a lot of hate in the probably faint,” he said, surrounded by works in companies including Nike, Red Bull PRICE of a piece by art world, too.” progress on the walls of the crammed studio he and Soylent, giving him a certain Dina Brodsky Still, even Smith’s brief suc- splits with another artist on the top floor of a for- level of financial freedom. Like cess means that he made hund- mer Long Island City factory building. many artists, he’s reluctant to tie reds of thousands of dollars from the art he makes to the marketplace, worried it original sales because the galleries that sold his may corrupt the purity of his work. paintings increased their prices, and he earned AVES TELLS A STORY that’s familiar to many “Being an artist is emotionally hard, beyond half of each sale. Prices for his original works working artists. A friend hosts gallery being difficult to do, especially living in New remain high, despite the cooling of the auction Ntours for the wives of investment York City, where everything is so expensive,” market for his work. SoHo gallery owner Guy bankers and other members of the affluent set. he said as he fiddled with a camera lens in his Hepner sells Smith’s paintings starting at As a favor, she brought the group to one of Long Island City studio. “There’s the burden to $70,000, and Powers sold a few Smith pieces in Naves’ shows at Elizabeth Harris. No one pur- make money from [your] art. I think that is a 2015 show. Salon 94 owner Jeanne Greenberg- chased anything. emotionally taxing and potentially toxic to your Rohatyn told Bloomberg, “We can sell all the Afterward, they went to a show of work by own art.” paintings he gives us.” Those works cost American abstract expressionist painter and If Ripps, a member of Forbes’ 2016 30 Under between $10,000 and $75,000. On March 5, printmaker Joan Mitchell at one of the blue- 30 Art & Style list, wanted to make money from Smith opened a solo show at Moran Bondaroff chip galleries in Chelsea. One woman bought a art, he said he’d be more middle-of-the-road gallery in Los Angeles. CONTINUED ON PAGE 18 and not offend the viewing public. He’d produce “candy art,” like the sculptures of Jeff Koons or Damien Hirst’s current work. These factory-style artists represent an easi- THE ADVISER er path to financial success, but Ripps is following one too, despite his assertions to the con- WILLIAM POWHIDA estimates he lost close to $12,000 on his art in 2015 when he compares his trary. He speaks his mind as a brash, unapolo- sales with the time and materials he invested. He holds a full-time job as artistic co-director of the getic New Yorker. He knows that the art world Association of Independent Colleges of Art and Design in Dumbo, which provides him with a cluttered will put him in the category of young, white, studio space for his text-based artwork. successful male artists such as Dash Snow and Working weekends, he produces roughly 15 to 20 original pieces a year, which sell for an average of Dustin Yellin. His work won’t appeal to every- $5,000. He says he generates $60,000 to $70,000 in annual revenue through sales, half of which goes one, but that’s OK. “Haters gonna hate. to the galleries representing him: Postmasters Gallery in New York, Charlie James Gallery in Los Angeles Ironically, that perpetuates my success. I’m like and Gallery Poulsen in Copenhagen. Powhida sells prints of his original works, which cost $1,000 or less. Donald Trump,” he said with a knowing smile. In 2014, he sold 27 prints in China after a show. Powhida’s work, which satirizes the art market (and can Ripps said the market for his work is grow- be seen on Page 15), was an inspiration for 9.5 Theses on Art and Class, a book by critic Ben Davis. ing, and he is planning an October show at the “I never thought I would see my work reviewed in Art in America. I never thought I would be repre- Steve Turner gallery in Los Angeles. He’s also in sented by one gallery, let alone four. I never thought I would create work that would be included in a talks with Postmasters Gallery about another larger dialogue,” he said. “I need to make sure that I’m not trying to define my career based on a [Jeff] solo exhibition. He has a piece in the gallery’s Koonsian figure or the superstars.” It’s an emotionally rewarding career, but sales are sporadic: “I wish I current show, a $40,000, solid-gold statue of had a little more economic freedom.” Pepe the Frog, a popular Internet meme. There has been interest from collectors, although no one has purchased it yet. “It’s very expensive,” THE 80-20 RULE: Powhida, shown a gallery representative said. here in his studio, Lucien Smith is three years younger than says 80% of artists Ripps but is already a star. In 2013, his 10-foot- share 20% of the market. tall painting Hobbes, The Rain Man, and My Friend Barney/Under the Sycamore Tree sold for $389,000 at Phillips auction house on Park Avenue. A year later, Two Sides of the Same Coin, a work the now-26-year-old made for his 2011 Cooper Union graduate show, sold for $372,000, well over the pre-auction estimate of $66,000 to $99,000. Called an art-world wun- derkind by Vogue and an “artist to watch” by gallerist David Zwirner, his pieces sold for a total of $3.7 million at auction in 2014, according to industry tracking website Artsy. Huge money, yes, but the winners were the auction houses and the art flippers, not Smith himself. The Hobbes sellers bought it for

BUCK ENNIS $10,000, Bloomberg reported. Smith made

MARCH 21, 2016 | CRAIN’S NEW YORK BUSINESS | 17 20160321-NEWS--0018-NAT-CCI-CN_-- 3/18/2016 3:09 PM Page 1

“THE AUCTION-HOUSE SMALL BUSINESS | MAKING IT AS AN ARTIST RECORDS THATGRAB THE HEADLINES ... THE ORIGINAL THAT’S JUST POWER-

IN 1989, HESTER SIMPSON found a studio BALLFOR BILLIONAIRES. on the top floor of an old factory building in Long Island City. During the past two and a half THATHAS NOTHING TO decades, she’s seen new residential buildings DO WITH WORKING spring up on the waterfront, blocking her view of Manhattan, but she hasn’t left. ARTISTS” She recently started sharing her $544-a- month space with an architect who comes into painting there for $3 million, seeing it as an the studio at night or on the weekends when Simpson is at home in Manhattan with her hus- investment rather than something to hang on band, a physician. She took on a subtenant after the wall. “We’re at a stage where people will she lost a part-time job as an evaluator for the spend $3 million for a painting before they Ricco Maresca Gallery. spend $3,000,” Naves said. “The commercial side feels like another world.” To supplement her income, Simpson has worked in the education department at PS1 and Dina Brodsky, 34, is the rare artist who is with mentally and physically disabled people making a living from her art while working through an agency called Healing Arts Initiative. outside the gallery system. She has built a She also has taught at Queens College. Ricco sustainable business using Instagram, Etsy Maresca also represents the small, irregular geo- and, when she took care of her newborn, metric works she creates by layering dozens of renting out her studio on Airbnb. “I can con- coats of colorful acrylic paint on a 12- by 12-inch trol my own career rather than relying on a base. A New York Times review called the paint- gallery,” she said. “No one cares about your ings “mesmerizing schematic canvases, polished work as much as you do.” and sophisticated,” and Ricco Maresca sells Brodsky paints detailed miniatures of them for $4,000. nature scenes, cityscapes and animals that Although Simpson says she’s had some suc- range from two inches high by two wide, to cess with sales, and billionaire art collector eight inches by eight. Her 135,000-plus William Louis-Dreyfus bought several of her Instagram followers help her boost sales. So pieces for $4,000 each, she hasn’t had a show do her low prices—about $500 for a smaller since 2012, and her sales are down. She painting. “I think if it was $10,000, I would remains hopeful. “My work changed, and it has HESTER SIMPSON shares her have a much harder time making sales taken me time to build up a new body of work,” Long Island City studio to save through Instagram,” she said. “Because it’s on rent. she said. “Early next month I will have several drawings and miniatures, people are willing new pieces photographed for my website.” to spend a few hundred dollars.” Brodsky has a gallery show about once a year, and her sale prices have risen from $150 a few years ago to $750. At her most recent show, in 2015 at Island Weiss Gallery on the Upper East Side, she sold about half the 50 paintings, representing six months of work. The rest sold through Instagram. Her huge following is paying off in other ways, too. Uber gave her a $200 credit for posting one of her drawings with a link, and she has received between $100 and $200 from other companies for doing the same. One art supplier gave her money, along with a variety of expensive sketchbooks and pens. She gave them away to her friends. In 2015, she made about $40,000. “For me, that’s a lot of money,” she said. If more artists follow Brodsky’s path and find their own financial success, it will hurt the galleries that most artists rely on for sales. Rising rents are already squeezing many galleries. The largest, most successful ones, like Gagosian, Gladstone and David Zwirner, own their spaces in Chelsea and will survive. Many more are leaving the neighborhood, where annual rents can run up to $150 per square foot. Although smaller galleries are opening on the Lower East Side (there are now 125 in the area, nearly doubling from 2010 to 2015), rent accounts for a third of a gallery’s overhead, and any increases add to the already immense financial pressures on the art marketers. (Supply stores can’t compete either. New York fixture Pearl River Mart closed its SoHo department store last year after the rent jumped from $100,000 a month to $500,000.) Galleries are also being pressured by the growing competition from art fairs, leaving them little room for new artists whose work may take time to find an audience. The

BUCK ENNIS European Fine Art Foundation reported that

18 | CRAIN’S NEW YORK BUSINESS | MARCH 21, 2016 20160321-NEWS--0019-NAT-CCI-CN_-- 3/18/2016 3:09 PM Page 1

art fairs accounted for 40% of indus- “Usually it’s the auction-house trywide sales revenue in 2014, up records that grab the headlines, but from 33% the year before. that’s just Powerball for billionaires,” Bill Powers, the gallerist who gave Powers said. “That has nothing to do Lucien Smith his first New York solo with working artists.” show, said even second-tier art fairs Still, working artists will continue charge $8,000 to $10,000 for a striving to make it in New York. booth. Factor in shipping art to the Despite the rising costs, the city shows and flying staff there, and it’s remains the best place to make con- easy to see why a gallery can’t afford nections, find galleries to represent to sell paintings that cost $2,000 their work and take advantage of from an emerging artist. “That’s to art-related financial opportunities. the detriment of collectors and art The key for an artist is to balance the fans in general,” Powers said. desire to create with the desires of This is the confusing game played the market. by Deshawn Dumas and other artists, Dumas recalled one professor’s young and old. “I think you can read evaluation while he was a student at the market,” Dumas said. His recent Pratt. She came into his studio, success is an indication that he’s at looked at his work, and said that she least partially correct. Even so, it’s thought it would sell. “That was her almost impossible that he’ll win [criticism],” he said. “I was like, financially in the way that Koons has. ‘Got any names?’” Ⅲ

THE SURVIVOR

THE SECOND FLOOR of the Newark apartment that Kevin Sampson, 61, shares with his 34-year-old son is crammed with the intricate, inventive sculptures created by the former Scotch Plains, N.J., cop and self-taught artist. He’s represented by the Calvin Morris Gallery in Chelsea and sells his works for $5,000 to $20,000 apiece. Sampson says he’s lucky if he makes $10,000 a year from art. His $25,000 early-retirement pension pays the rent, and a teaching- PROMOTE. artist position at the Rutgers University Paul Robeson Gallery pays for his food. Why not? Rent costs Sampson $1,100 a month, which is cheaper than it could be, but the landlord—who runs a window-making shop around the corner where Sampson For more information contact Krista Bora, Reprint Account Executive works when he’s hard up for cash—“protects me,” Sampson said. [email protected] • tel 212.210.0750 He is considered the leader of a small group of older artists in Newark trying to hang on as an influx of younger artists flee the high prices of Manhattan and Brooklyn, in turn driving up rents in New Jersey’s biggest city. “Newark is a mess,” he said. “We need new people, but I want to make sure that the artists who stayed here when nobody wanted Newark don’t get lost in the shuffle—that our legacy continues. I’m like the ringleader, raising hell.” 񡑂񡑒񡑗񡑀񡑅񡑃񡑑񡑀񡑓񡑃񡑙 񡑗񡑕񡑀񡑄񡑃񡑔񡑈񡑃񡑐񡑑 񡑔񡑃񡑖񡑇񡑕񡑀񡑃񡑑񡑆񡑀 񡑘񡑇񡑀񡑘񡑒񡑑񡑠񡑖񡑀 񡑕񡑉񡑒񡑘񡑀񡑗񡑓񡑀 񡑇񡑐񡑖񡑉񡑇񡑔񡑁

񡑗񡑱%񡑀񡑧񡑰񡑱∋񡑀∗(񡑱%񡑀񡑤񡑢∃񡑀∋񡑥񡑘∃񡑀(񡑱%񡑀 񡑘(񡑀񡑣񡑱∀񡑅+񡑀񡑓%∃񡑃񡑀∋񡑦∃񡑥񡑀񡑢񡑨񡑢&񡑘∃񡑱∀ 񡑩񡑘񡑦񡑰∃񡑢񡑰񡑘񡑰񡑠񡑢񡑃񡑀񡑖񡑉񡑔񡑀񡑂񡑃񡑒񡑉񡑈񡑔񡑓񡑄񡑈񡑖񡑀񡑀񡑂񡑁񡑄񡑃 񡑆񡑄񡑓񡑀񡑕񡑇񡑂񡑓񡑀񡑖񡑉񡑔 񡑀񡑂񡑁񡑄񡑃 񡑐񡑂񡑖 񡑅񡑉񡑑񡑁

񡑖∃񡑥񡑢∀#񡑀񡑩񡑘(񡑀񡑤񡑦&񡑢񡑀(񡑱%񡑀∗񡑙񡑘∀񡑤񡑘񡑦񡑰+񡑀∀񡑘∃񡑢#񡑀∃񡑱񡑀񡑤񡑢∃񡑀(񡑱%∀񡑀񡑙%#񡑦񡑰񡑢##񡑃 񡑙%∃񡑃񡑀∋񡑥񡑢∀񡑢񡑀񡑘∀񡑢񡑀∃񡑥񡑢(񡑀∋񡑥񡑢񡑰񡑀(񡑱%񡑀񡑰񡑢񡑢񡑡񡑀∃񡑥񡑢񡑩񡑑

񡑓(񡑀񡑠񡑱񡑰∃∀񡑘#∃񡑃񡑀񡑕񡑂񡑕񡑀񡑦#񡑀񡑘񡑨∋񡑘(#񡑀∃񡑥񡑢∀񡑢񡑀񡑣񡑱∀񡑀(񡑱%񡑃񡑀∋񡑦∃񡑥񡑀#񡑠񡑥񡑢񡑡%񡑨񡑢񡑡񡑀#񡑢∀&񡑦񡑠񡑢񡑃 񡑱 񡑢񡑰񡑀񡑠񡑱񡑩񡑩%񡑰񡑦񡑠񡑘∃񡑦񡑱񡑰񡑀񡑘񡑰񡑡񡑀!%񡑦񡑠񡑧񡑀∀񡑢# 񡑱񡑰#񡑢񡑀∋񡑥񡑢񡑰񡑀∃񡑥񡑢∀񡑢,#񡑀񡑘񡑀 ∀񡑱񡑙񡑨񡑢񡑩񡑅

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HANGING ON: Retired cop Kevin Sampson works in a window factory when he’s not in his Newark studio. 񡑐񡑆񡑈񡑅񡑇񡑈񡑉񡑅񡑈񡑇񡑈񡑈񡑀)񡑀∋∋∋񡑅񡑡񡑡񡑢񡑨񡑢&񡑘∃񡑱∀񡑅񡑠񡑱񡑩񡑀)񡑀񡑦񡑰񡑣񡑱񡑒񡑡񡑡񡑢񡑨񡑢&񡑘∃񡑱∀񡑅񡑠񡑱񡑩 񡑆񡑉񡑕񡑘񡑣񡑒񡑘񡑉񡑘񡑐񡑒񡑀񡑂񡑀񡑈񡑒񡑠񡑉񡑕񡑡񡑀񡑨񡑀񡑆񡑙񡑑񡑒񡑡񡑘񡑕񡑧񡑉񡑣񡑕񡑙񡑘񡑀񡑨񡑀񡑃񡑙񡑑񡑒񡑀񡑃񡑙񡑗񡑠񡑖񡑕񡑉񡑘񡑐񡑒񡑀񡑨񡑀񡑇񡑒񡑦񡑀񡑃񡑙񡑘񡑢񡑣񡑡񡑤񡑐񡑣񡑕񡑙񡑘 BUCK ENNIS

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NYC Multifamily Market Shows No Signs of Slowing Down TWO MONTHS WORK IN Brooklyn and Bronx emerge as strong players FREE* By mentioning this ad Expires 05/31/16 STYLE

Benji Kohn (left) and David Manheimer (right)

hen childhood friends David Manheimer and Benji Kohn decided to are adding more inventory to the rental market while also boasting luxury try their hand at real estate in New York City’s highly competitive accommodations like yoga studios and courtyards. Fully Furnished Wresidential rental market, the two looked not to Manhattan, the borough of their youths, to make their fi rst investment, but to Brooklyn. They Meanwhile, in Manhattan, Brookfi eld Property Partners is putting the fi nishing specifi cally looked at undervalued, multifamily properties in neighborhoods touches on Manhattan West, a luxury residential tower that boasts 879 rental like Bushwick, Williamsburg, and Greenpoint. They homed in on areas that apartments. Like most new rental developments, Manhattan West will place were starting to experience the fi rst stages of gentrifi cation. an emphasis on luxury lifestyle amenities. In all, there are 26,000 rental apartments that are projected to be completed in 2016 to help with demand. “I tell people that what we do as a company is we fi nd these older buildings In the years to come in New York City, these large-scale rental buildings and modernize them for the newer Brooklyn tenant,” said Manheimer. should continue to pop up in all of the city’s submarkets.

Today their company, Brooklyn Standard Properties, owns seven multifamily properties across Brooklyn. “ I tell people that what we do as a The two partners have toyed with the idea of ﬁ nding multifamily properties company is we ﬁ nd these older buildings in other parts of the country, but ultimately they decided to stick with the tristate area as their primary focus. and modernize them for the newer “One of the unique aspects of this market is that there really is no vacancy,” said Manheimer. “There will always be demand for our style of apartment.” Brooklyn tenant,” said Manheimer.

Indeed, investor demand for multifamily properties throughout New York City “I think fi nancing of rental properties is much easier today than fi nancing of has skyrocketed. Last year the New York City multifamily market registered its condominium projects, and that’s been an integral part of the multifamily market,” second consecutive year of record growth, largely highlighted by Blackstone said Jacqueline Urgo, president of The Marketing Directors, the residential sales Group and Ivanhoe Cambridge’s $5.3 billion deal for Stuyvesant Town-Peter fi rm that is working with Brookfi eld Properties on Manhattan West. Cooper Village. A total of $19 billion in multifamily sales took place in 2015, according to a recent Ariel Property Advisors report. Low interest rates Investors should continue to be active in Manhattan and Brooklyn in 2016, and “strong fundamentals” helped increase dollar volume in each of NYC’s thanks to low interest rates and “abundant commercial credit,” said Marcus submarkets, Ariel Property Advisors reports. & Millichap in a recent report. Helping with the demand for multifamily properties in 2016 are continued low vacancy rates, a projected 1.9% job Fully wired Brooklyn growth rate, a projected 2.5% hike in rents (increasing demand for more Of those submarkets it was Brooklyn that experienced a massive surge in aff ordable apartments), and the growing likelihood that many real estate 3 COlUmbUS CiRCle 125 pARk AveNUe 28 weST 44Th STReeT dollar volume and change in its median price, which jumped 16.7% from the owners will soon begin selling off pieces of their portfolio, according to year before, to $5.6 million. Marcus & Millichap.

The average sales prices of apartments in the city—which reached an all-time The Bronx Emerges high of $1.87 million last year in Manhattan alone, along with the high cost of As Brooklyn’s popularity with renters continues to grow, the Bronx borough is mortgages, has squeezed many buyers out. emerging as a new horizon for multifamily development. The outer-borough RedeFiNiNg ReAl eSTATe registered the strongest gain in price-per-square-foot in 2015, increasing “This average record isn’t really created by a bunch of super-luxury closings year-over-year by 32%, to $160, according to Ariel Property Advisers. that skew the average higher,” said Jonathan Miller, chief executive of Miller The Related Companies has been a particularly aggressive buyer in the Bronx At emerge212, we know that one size or solution does not work for Samuel. “It is more about the overall market, and the challenge of chronically market over the past year, most recently snapping up a 20-building portfolio, low inventory,” he added. containing over 730 apartments, for $112.5 million. Other companies like A&E every business, especially a growing one. Count on us to customize Real Estate Holdings and Eastern Capital Partners have also made forays into This has helped in maintaining Brooklyn’s appeal to young professionals and the Bronx multifamily market. our fully furnished office space to your needs, so you pay for the space families seeking more aﬀ ordable apartments. But rents are still growing in the borough. In January, the average rent throughout Brooklyn was $2,717.39, Manheimer sees the value proposition the Bronx can provide. “While the that fits your business now. a 0.20% increase from December 2015, according to a report by MNS. Bronx is up-and-coming, given our business model, the time we believe it will take from where it is now to where it needs to be is too long for our investor “The brand of Brooklyn has become so strong in recent years,” said Warner base,” said Manheimer. Lewis, a partner in The Harkov Lewis Team at Halstead Property. “For multifamily properties in Brooklyn the space stands out, and for investors In the meantime, Brooklyn Standard Properties is close to entering the there are a lot of great properties on the market,” he added. Manhattan multifamily market and is working on adding more buildings in CONTACT US Brooklyn into their portfolio. TO SChedUle A ShOwiNg Developers, sensing the increasing demand for rentals in Brooklyn, are embarking on ambitious new rental developments in the area. Brookﬁ eld “New York City real estate is pretty safe and you can generate any yield now, and I Property Partners recently bought a majority stake in the Greenpoint Landing don’t think interest rates are going up as fast as other people do,” said Manheimer. project along the northern Brooklyn waterfront. The project will add two high- Fully serViced rise towers and add an estimated 5,500 rental apartments to the Brooklyn “You put those two together and I think there will be a solid base for multifamily 888.572.3793 marketplace. Similar developments like Atelier Williamsburg and The Giovanni investment for a while.”

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Notice of Formation of: Cartesian Point 1RWLFHRI4XDOLÀFDWLRQRI7UXPDQ$&0 Notice of Formation of 50 MONITOR SMOKIN’ Partners, LLC Articles of Organization *ROGHQ6WDWH5(2//&$XWKRULW\ÀOHG 675((72:1(5//&$UWVRI2UJÀOHG SPEECHES Filed with the SSNY on March 3, 2016 ZLWK1<'HSWRI6WDWHRQ with Secy. of State of NY (SSNY) on The Last Word LLC 2IÀFH/RFDWLRQ1HZ

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MARCH 21, 2016 | CRAIN’S NEW YORK BUSINESS | 23 20160321-NEWS--0024-NAT-CCI-CN_-- 3/18/2016 4:15 PM Page 1

GOTHAM GIGS

LIGHTENING THEIR LOADS: Apolonia Edwards helps hoarders gain relief from their burdens, both materially and psychologically.

Her business is cleaning up Tired of getting laid off,Apolonia Edwards found her niche helping hoarders declutter their homes

here is the clutter that’s talked about in “And I started to remodel my business plan and APOLONIA EDWARDS the best-selling book The Life-Changing developed my own technique.” Magic of Tidying Up, which helps people Edwards had the added qualification of having dealt pare down their closets. And there is the with the issue growing up. Her father was a hoarder, AGE In her 40s Tclutter that demands the services of Apolonia and as a child she was the one who helped him. BORN Jamaica Edwards, who can spend weeks emptying and then In 2008, when Edwards was laid off from the RESIDES New York City cleaning an apartment that has become a health or imploding investment bank Bear Stearns—her fourth EDUCATION Pursuing a bachelor’s fire hazard. layoff in seven years—it seemed time to degree in organizational management It’s a job that requires a therapist’s focus on her own business, which she I get to help Hoarders accumu- empathy for compulsion issues and a “ now runs with four regular cleaners. MANY TYPES people and late different things, and to different project manager’s ability to break down Referrals come from social workers, degrees. Edwards has worked with an overwhelming task into small steps. At make a hospitals or family members. people who shop compulsively and least those are the qualities that the difference in Sometimes a client on his or her own throw nothing away, as well as with Jamaican-born Edwards credits for her will want a fresh start. those who hoard books, newspapers, their lives bottles, trash or animals. Hoardings success in building Ideal Cleaning ” Edwards’ technique includes play- can be scattered around or piled to Services into an enterprise dedicated to ing music to make “decluttering as the ceiling, leaving narrow paths hoarders—with her own technique for decluttering. normal as possible” while a two-person team sorts through a home. Her most serious The onetime model started what was a side busi- belongings into labeled trash bags. She talks with the case took six months to declutter. ness in 2001, offering office and residential cleaning. client about what to keep, while garbage is thrown CLEANING IS JUST A START Her full-time job was as an IT project manager in the away daily. Jobs can stretch from eight hours to In 2012, Edwards became a certified financial industry. Gradually, her cleaning service several weeks—and cost from $300 to $10,000. life coach to help guide clients once began getting requests for decluttering, which she “It’s hard work, there are hardly any days off, but the cleaning was done. She also would like to study mental health found more rewarding. I’m not laid off anymore,” Edwards said. “And I get so that she will be able to offer “I realized that with my project-management to help people and make a difference in their lives.” counseling.

BUCK ENNIS skills, I was really good at it,” Edwards recalled. — MATTHEW FLAMM

24 | CRAIN’S NEW YORK BUSINESS | MARCH 21, 2016 20160321-NEWS--0025-NAT-CCI-CN_-- 3/18/2016 4:12 PM Page 1

SNAPS

Net gains for Randall’s Island Park Alliance The Randall’s Island Park Alliance honored tennis legend John McEnroe at its March 8 gala at the American Museum of Natural History. About 600 people turned out to celebrate McEnroe, who runs a namesake tennis academy on the island and provides training for children who otherwise wouldn’t be able to afford the lessons.

Justin G. Hamill, a partner at law firm Paul Weiss Rifkind Wharton & John McEnroe and Jeanne Garrison, and Rodney S. Moutoussamy-Ashe, Cohen, a managing direc- photographer and widow of tor at the Carlyle Group, at tennis great Arthur Ashe, at the the Randall’s Island event. Randall’s Island Park Alliance benefit, which raised more than $1.1 million. Common Pantry holds benefit

Camille Kelleher, treasurer of New York Mentoring group Summer Search raises record Common Pantry’s board of directors, and her Graves Tompkins, a managing director at investment firm General Atlantic, husband, Rory, senior John Legend, Oscar- and Grammy-winning singer, and Vanessa Rahman, counsel in New York for Summer Search NYC board member, at a March 9 benefit at Cipriani 42nd Chicago-based law firm Street for Rahman’s organization, a nonprofit that provides mentoring to low- Sidley Austin, at a income students. March 8 benefit for the pantry, which provides food for the needy. The event was held at Gotham Hall.

Kathy Kopnisky with her husband, Jack Kopnisky, president and chief executive of Sterling Bancorp, JoAnne Braunstein with her husband, Harry Braunstein, and William Turkish, found- ing partners of law firm Braunstein Turkish, at the Summer Search fete, Margaret Sung, benefit dinner chair, Patrick Johnson, Northeast sales and which raised a record marketing consultant for Wells Fargo, Sherrell Andrews, New York Common $1.7 million. Pantry board member, Cheryl Wills, journalist at NY1, and Sara Moss, executive vice president and general counsel at the Estée Lauder Cos., at the New York Common Pantry gala, which took in more than $700,000.

O:BAY.O/ILRGZIOCR TIMPONE, BFANYC.COM/WILL RAGOZZINO/CARL TOP: PHILIP ANEMA, BARRITT/GETTY CRAIG SEE MORE OF THIS WEEK’S SNAPS ONLINE AT CRAINSNEWYORK.COM/SNAPS. GET YOUR GALA IN SNAPS. EMAIL THERESA AGOVINO, [email protected]

MARCH 21, 2016 | CRAIN’S NEW YORK BUSINESS | 25 20160321-NEWS--0026-NAT-CCI-CN_-- 3/18/2016 4:13 PM Page 1

FOR THE RECORD*

as bagels and pastries. The Services, owed management company’s the 16th floor from the Amrich and Neil King. The NEW IN TOWN owners are awaiting $10,058,816; and EAMS- new space is a combina- 10th and 14th floors of asking rent was $75 per approval on a liquor Embraer Aircraft tion of two locations, 161 the building between square foot. Sonia Rykiel license. Maintenance Services, Sixth Ave. and 233 Spring West 35th and West 36th 816 Madison Ave. owed $6,345,766. St. The tenant was repre- streets. Both the tenant RETAIL The luxury French label sented by CBRE’s Ben and the landlord were Veterinary Emergency & opened its only stand- COMPANY MOVES Fastenberg and Ross represented by Adams & Referral Group signed a alone store in the United GOVERNMENT Zimbalist. The landlords, Co.’s David Levy. The 15-year lease for 12,000 States, on the Upper East Pop International CONTRACT Stellar Management and asking rent was $54 per square feet at 196 Fourth Side. The shop offers Galleries OPPORTUNITIES Rockpoint Group, were square foot. Ave. in Park Slope, Rykiel’s spring and pre- 195 Bowery represented by NGKF’s Brooklyn. The 24-hour spring collection, swal- The pop culture and urban CONSTRUCTION SERVICES Courtney Adham, David Argonaut Management facility will take up the low-printed pajama suits art space has relocated to Department of Correction Malawer, Brent signed a four-year, two- entire two-story property and wide-leg denim. Nolita from SoHo. The Seeks competitive sealed Ozarowski, Andrew month renewal for 8,673 between Degraw and gallery, in a ground-floor bids by 11 a.m. on April 19 Peretz and Brian square feet at 546 Fifth Sackett streets. The ten- Bar Omar space in a 16-story resi- for a qualified mechanical Waterman. The asking Ave. The investment firm ant did not have a broker. 188 Grand St., Brooklyn dential building, follows contractor to provide rent was not disclosed. has occupied the entire The landlord, Todd The French-owned other recent moves to the construction for the instal- 17th-floor space for the Parjonas, was represented restaurant opened in area by such galleries as lation of a heating system at New York-Presbyterian past eight years. The by CPEX Real Estate’s Williamsburg. The menu Sperone Westwater, Salon the Robert N. Davoren Hospital signed a 15-year tenant was represented Keat Chew, Ryan Condren includes Algerian and 94 and Lehmann Maupin. Center, located on Rikers lease for more than by JLL’s Alexander and George Danut. The Moroccan soul food, like Island. Contact Lilliana 10,000 square feet at 463 Chudnoff and Harley asking rent was $50 per lamb sauté, beef bro- Mighty Quinn’s Barbeque Alvarez-Cano at (718) 546- Seventh Ave. The hospital Dalton. The landlord, JSRE square foot for the ground chettes and pan-fried 1492 Second Ave. 0686 or lilliana.cano@doc is expanding its adminis- Acquisitions, was repre- floor, and $35 for the sec- veal. The eatery opened its sev- .nyc.gov. trative offices to part of sented by CBRE’s Paul ond floor. enth metro-area location, Nostrand on the Upper East Side. Department of Parks and 261 Nostrand Ave., The new outpost serves Recreation Brooklyn American craft beer and Seeks competitive sealed DEALS ROUNDUP The Korean café opened in wine, and uses counter- bids by 10:30 a.m. on April TARGET/SELLERS TRANSACTION SIZE BUYERS/INVESTORS TRANSACTION TYPE Bedford-Stuyvesant. The ordering service for its 7 for landscaping and con- [IN MILLIONS] eatery serves Korean- slow-smoked barbecue. struction of a seating area International Securities $1,100.0 Nasdaq Inc. (Manhattan) SB M&A influenced lunch and din- Spoon bread—or herbed and a path-barrier rail at Exchange Holdings Inc. ner menu items such as a cornbread made with the Richmond Terrace (Manhattan)/ bulgogi burrito, kimchi apples, bacon and Wetlands, located on Deutsche Boerse AG fried rice, a tofu burger and sausage—is the latest Richmond Terrace more, all for $15 and menu addition. between Van Name and 1st Century Bancshares $108.3 Midland Financial Co. SB M&A Inc./Basswood Capital under. Aside from the cof- Van Pelt avenues, Staten Management (Manhattan) fee and tea already offered, Island. Contact Michael there are plans to include BANKRUPTCIES Shipman at (718) 760-6705 Laporte Bancorp Inc./ $83.9 Horizon Bancorp SB M&A fresh juices, smoothies, or michael.shipman@ Castine Capital Management; Maltese Capital Management wine and beer. BH Sutton Mezz parks.nyc.gov. (Manhattan) 428-432 E. 58th St. Scarr’s Pizza Filed for Chapter 11 bank- GOODS AND SERVICES AlphaSense Inc./not disclosed $33.0 Individual investors; Soros Fund GCI 22 Orchard St. ruptcy on Feb. 26. The fil- Economic Development Management (Manhattan); Triangle Peak Partners; Tribeca Venture Partners The pizzeria opened on ing cites estimated assets Corp. (Manhattan) the Lower East Side. of $100,000,001 to $500 Seeks request for proposals Wood-board paneling and million and estimated lia- by 4 p.m. on April 8 for the Justworks Inc. (Manhattan)/ $33.0 Bain Capital Ventures; GCI Tiffany lamps adorn the bilities of $10,000,001 to planning, design and con- not disclosed Index Ventures; Redpoint Ventures; Thrive Capital (Manhattan) throwback pizza parlor, $50 million. The creditors struction of a permanent which offers a $3 plain with the largest unsecured passenger ferry terminal at Eastern International Bank $31.9 EIB Capital Corp. (Brooklyn) SB M&A slice made by owner Scarr claims are FP Architects, a to-be-determined loca- /not disclosed Pimentiel using his own owed $852,600; Pembroke tion on Queens’ Rockaway homemade flour and har- & Ives, owed $558,966; Peninsula, west of Beach Attivio Inc./not disclosed $31.0 General Electric Pension Trust; GCI Oak Investment Partners; Tenth Avenue vested tomatoes. and Corcoran Sunshine, 84th Street. Contact Holdings (Manhattan) owed $440,000. Maryann Catalano at Rice Cream Shoppe (212) 312-3969 or Solazyme Inc./not disclosed $27.9 Artis Capital Management; Glenhill GCI 195 Bleecker St. Ocean Parkway rockawayferryterminal@ Capital Advisors (Manhattan); individual The rice-pudding shop Management Realty edc.nyc. investors; Powerplant Ventures; Simon Equity; VMG Partners opened in Greenwich 2455 W. 1st St., Brooklyn Village. The single- Filed for Chapter 11 bank- Housing Authority S.C. Networks Inc. (Manhattan)/ $15.0 BAM Ventures; DCM; individual GCI concept restaurant serves ruptcy on Feb. 23. The fil- Seeks competitive sealed not disclosed investors; Luminari Capital; Sky plc; 20 flavors of rice-pudding ing cites estimated assets bids by 10 a.m. on April 14 Twenty-First Century Fox, Inc. (Manhattan) iterations at any given and liabilities of $100,001 for the installation of Selected deals announced for the week ended March 10 involving companies in metro New York. SB M&A: time, 15 of which are con- to $500,000. vinyl-composition floor Strategic buyer M&A represents a minority or majority acquisition of existing shares of a company without stant and five seasonal. tile in various apartments the participation of a financial buyer. GCI: Growth capital investment represents new money invested in a company for a minority stake. Flavors include tiramisu, Republic Airways in Brooklyn and Queens. SOURCE: CAPITALIQ cherry vanilla, pistachio Services Inc. Contact Mimose Julien at and chocolate hazelnut. 80 Broad St. (212) 306-8141 or Vegan, low-fat and Filed for Chapter 11 bank- mimose.julien@ GET YOUR NEWS ON THE RECORD gluten-free choices are ruptcy on Feb. 25. The fil- nycha.nyc.gov. *To submit company openings, moves or real estate deals, or to receive further information, available. ing cites estimated assets email [email protected]. and liabilities of For the Record is a weekly listing to help businesspeople in New York find opportunities, Sir D’s Lounge $1,000,000,001 to $10 bil- REAL ESTATE DEALS potential new clients and updates on customers. Bankruptcy filings from the Eastern and 837 Union St., Brooklyn lion. The creditors with Southern districts of New York are listed alphabetically, as are recently announced New The coffeehouse and tea the largest unsecured COMMERCIAL York City agency contract opportunities. Real estate listings are provided in order of square lounge opened in Park claims are GE Engine Managed by Q signed a footage. Stock transactions at New York’s largest publicly held companies were filed with Slope. Menu items include Services, owed 10-year lease for 26,022 the Securities and Exchange Commission. Listings are in order of transaction value, and the information was obtained from Thomson Reuters. paninis, salad and a vari- $20,612,355; Embraer square feet at One Soho ety of breakfast foods such Aircraft Customer Square. The office-

26 | CRAIN’S NEW YORK BUSINESS | MARCH 21, 2016 20160321-NEWS--0027-NAT-CCI-CN_-- 3/18/2016 4:14 PM Page 1

PHOTO FINISH

Coffee gets competitive

hile many people enjoy a morning cup of coffee to relax, the first sips of the day for Taylor Mork at Crop to Cup, a coffee importer in Gowanus, Brooklyn, are serious business. One Friday, Mork was raising spoonfuls of coffee to his mouth, unleashing a pow- erfulW slurp akin to a vacuum cleaner to taste each sample, before spitting them into a metal cup. Mork and co-founder Jake Elster established the business in 2007 just as specialty coffee began to take flight in the city, but spun off roasting operations to Brooklyn Roasting Co. in 2014. “Our passion was working with farmers to increase their quality and grow their volume,” said Mork, who looks to “nonstan- dard” regions for new partnerships. One of its first suppliers was the Buginyanya Farmers Group in Uganda, a country overshadowed in the specialty market by neighboring Kenya. From there, Crop to Cup cultivated connections with growers in Tanzania’s Mbeya District, Buhorwa in Burundi and the states of Guerrero and Colima in Mexico. Roasters can visit the Gowanus café and sample brews, then buy from Crop to Cup’s “spot market” of imported coffees. Bigger clients such as Variety Coffee Roasters in Bushwick, Brooklyn, also place orders with partners overseas. Microroasters—which produce no more than 100,000 pounds of beans per year— seek out unique coffees and want beans that no one else will be using. Maya Bluestone, who runs Crop to Cup’s online sales, said a common question about a particular coffee is “Who else have you sold it to?” — PETER D’AMATO PETER D’AMATO

MARCH 21, 2016 | CRAIN’S NEW YORK BUSINESS | 27 B:11.125” T:10.875” S:10.25”

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