Real Estate Industry,Business Interests Publisher Macmillan, Which Was En

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INSIDE No Wall St. TOP STORIES bonus InterContinental points for Hotel invades rest of us —Greg David Times Square ® Page 11 PAGE 2 Mo homers in VOL. XXVI, NO. 7 WWW.CRAINSNEWYORK.COM FEBRUARY 15-21, 2010 PRICE: $3.00 new role as RE investor Ground PAGE 3 Zero arts Why IPO investors aren’t buying what center gets Blackstone’s selling PAGE 3 go-ahead Rivals eye racino contract as winner City insists onWTC stumbles at gate site; project’s long- PAGE 4 term viability doubted

Donatella Arpaia BY MIRIAM KREININ SOUCCAR cooks up book, and after endless debate over the final maybe a TV show location for a performing arts center to NYNY, PAGE 6 be built at Ground Zero, city officials told Crain’s last week that the Frank Gehry-designed theater will be con- structed on the originally planned site, BUSINESS LIVES and that below-ground construction work on the foundation will start next quarter. The 1,000-seat theater and rehears- al facility, to be run by the Joyce The- ater, a dance presenter, was originally scheduled to open this fall. But dis- agreements between city and state officials, and the complexity of building at Ground Zero, have kept the project on the back burner. Now, after much wrangling, the Lower Manhattan Development Corp. GOTHAM GIGS See GROUND ZERO on Page 24 Meteorite collector trades the hot rocks P. 25 G ANNE FISHER on the hive mentality P. 25 turner james Macmillan G MOVERS & SHAKERS Fashion Week’s new chief preps for event’s boss stares move uptown P. 26 G GAEL GREENE gets her TO THE RAMPARTS! down Bezos burger fix on P. 27 Business groups turn to power politics CEO John Sargent INDEX to fight tax hikes, increased spending dictates pricing terms NEIGHBORHOOD JOURNAL ______7 to e-Goliath Amazon THE INSIDER ______8 The city and state business community is chang- BY DANIEL MASSEY SMALL BUSINESS ______9 ing its political course. Frustrated by organized la- BY MATTHEW FLAMM CRAIN’S ONLINE POLL ______10 bor’s tightening grasp on power in Albany and City the filet mignons served at last month’s Real Hall, business leaders hope to adopt some of the CLASSIFIEDS ______21 Estate Board of New York awards dinner came with campaign strategies that have made unions and at a meeting of independent book- HOT JOBS ______25 an unlikely side:laminated business cards urging the their political appendage, the Working Families sellers this month in San Jose, Calif., a EXECUTIVE MOVES ______25 city’s building owners and property developers into Party,significant forces in local politics. Spearhead- speaker expressed thanks to New York RÉSUMÉ REVIEW ______26 action. ed by the city’s real estate industry,business interests publisher Macmillan, which was en-

THE WEEK AHEAD ______27 “New York needs our help,” the cards distributed across New York are emerging from their single-is- gaged in a nasty fight with online retail- at each $950-a-head table read. “Join the battle.” See BUSINESS on Page 24 er Amazon over e-book pricing. Some 500 booksellers leaped to their feet for a standing ovation. 07

5 Macmillan, the smallest of the ma- REPORT REAL ESTATE jor houses, was the publisher least like- Big Four REIT’s ready for their comeback; ly to take on Amazon,and its unassum- ing chief executive, John Sargent, the ELECTRONIC EDITION plus Top leases and property sales and least likely pick for the role of David shunning bad landlords PAGES 13-20 against Jeff Bezos’ Goliath. NEWSPAPER See STARING DOWN on Page 23 71486 01068 0 20100215-NEWS--0002,0003-NAT-CCI-CN_-- 2/12/2010 7:08 PM Page 1

IN BRIEF ROSE ASSOCIATES INC. WAS TAPPED TO HELP MANAGE STUYVESANT TOWN-PETER COOPER Village’s transition to a new owner as the Tishman Speyer-led partnership prepares to hand back the keys to creditors of its disastrous $5.4 billion investment. Rose managed the huge rent-regulated complex on the East Side for roughly four years when it was owned by MetLife. Rose and Tishman Speyer said they will work together to create and implement a detailed transition plan to ensure a smooth and orderly transition for residents. Additionally, Rose said it would solicit feedback from residents about the complex’s operations.

A PROPOSAL TO ALLOW WINE SALES IN FIRST ORDER: Drew SUPERMARKETS HAS WON THE SUPPORT OF Schlesinger’s goal is to make the the politically powerful 1199 SEIU. The InterContental more measure, included in Gov. David Paterson’s successful than the proposed budget, in which he seeks to nearby Westin. eradicate an $8.2 billion deficit, could raise $300 million for the state over two years via licensing fees. Lawmakers rejected a similar buck ennis proposal last year, but increases in the licensing fees combined with a tough budget and renowned interior designer Jeffrey environment and the union’s backing should Beers. Even Danny Meyer is moving into help its chances this time around. For its part, Inn crowd grows the building’s retail space to open his pop- 1199 is facing $1 billion in proposed health ular Shake Shack. care cuts. The InterContinental Times Square will no doubt up the ante in its neighbor- in Times Square hood, siphoning away business from rival BY THE NUMBERS hotels, not least among them the eight- year-old, 863-room Westin New York, the Rivalry heats up with InterContinental’s arrival last large hotel to be built in Manhattan. Weekly shift of the city’s economy GOLD MEDAL HONORS were earned by legial neighbors. What sibling rivalry? Germany for helping to bail out Greece, but will BY LISA FICKENSCHER The $500 million InterContinental mr. snyder dismisses the notion of sib- the fix last? Meanwhile, jobless claims dropped, project will add 607 rooms to an already ho- ling rivalry between the properties. retail sales rose and home sales surged 14%. when the InterContinental New York tel-heavy district, but it promises to be the “We don’t see the two hotels being Times Square opens in July, the 36-story most upscale property in Times Square. competitive with each other,” he says.The +5.1% +21.2% 10” property on West 44th Street and Eighth InterContinental brand, he explains, is RISE IN B’way RISE IN NY OFFICIAL Avenue will be the largest hotel to be built Central Park South meets Times Square better known abroad than the Westin ticket sales for bankruptcies in SNOWFALL in in the city since 2002. “we are opening a higher level of product (owned by Starwood Hotels & Resorts), the four weeks Jan., vs. year- Central Park from Its owner, a limited partnership led by in Times Square, one that is more associat- and therefore it is more popular with inter- ended Feb. 7, vs. earlier period Wednesday’s Tishman Hotel & Realty,conceived of the ed with the luxury properties along Central national travelers.The Westin property,he year-earlier period Source: U.S. non-blizzard Source: The Bankruptcy Court, S. Source: National property during the boom years, when its Park South,” says Robert Snyder, executive adds, has much more meeting space than Broadway League and E. districts of NY Weather Service other large hotel,the Westin Times Square vice president of Tishman Hotel & Realty. the InterContinental, which means that it just down the block, was so busy it was A who’s who of prominent hospitality attracts more group business. forced to turn guests away. figures are associated with the hotel, in- Others see it differently.“You bet I’d be TURNING AROUND: After months of steep declines, a key indicator of the health of the city’s housing market has Now, in this economy, the two hotels cluding celebrity chef Todd English—he is concerned, if I was next door to that new actually turned upwards in recent months. will be scrappy competitors instead of col- opening a 150-seat bistro off the lobby— See INN CROWD on Page 24 Biz could use energy jolt

New York State Energy Research and De- Shockingly few small companies take advantage velopment Agency offered grants, but the Changes are for 2009 versus 2008. Source: U.S. Census Bureau of government breaks and incentives, study finds paperwork was “just massive,” Mr. Roy says. His company spent $25,000 on an CORRECTIONS AND CLARIFICATIONS released tomorrow by the Center for an outside consultant—and eventually got its BY EMILY LAERMER Urban Future. roof. “It’s very time-intensive,” he says. Spokespeople at Lazard Ltd. and Goldman Sachs Group say a Feb. 8 “In The Markets” story on bonuses at Lazard relied on an “These investments can bring down erroneous transcript from a conference call with analysts. The new york’s high energy costs, which monthly energy bills a lot,” says David Kilowatt costs are twice U.S. average transcript used for the story quotes a Goldman analyst using the are twice the national average, hobble Giles, the report’s lead author. “The prob- energy costs are unusually high in word stunt to describe recent changes in compensation at small businesses like Gourmet Guru. The lem is that not a lot of small businesses are New York state because of a thick layer of Lazard. Both firms say the analyst did not use the word stunt. The actual recording is not clear enough to confirm either version. Bronx-based food distributor shells out picking up on them.” taxes and fees and a regulation that requires more than $12,000 a month for energy to The programs studied by the report utilities to use expensive natural gas rather The name of arts institution BRIC Arts/Media/Bklyn was misstated in the Feb. 8 story “Curtain rises on Brooklyn arts run a warehouse-size refrigerator that range from those that offer energy audits, than coal. Energy in New York costs 21.2 center.” hums 24/7. to those that give major grants for infra- cents per kilowatt hour, while the national The publisher of Newsday is Terry Jimenez. His name was “A huge percentage of our cost struc- structure improvements. The study found average is just over 10 cents. Only Hawaii misstated in the Feb. 1 article “Newsday harder-pressed.” ture is energy,” general manager Mickey that programs designed for small business- has more expensive energy. Few small Roy explains.“Almost everything we sell is es are often marketed poorly—to a busi- businesses in New York City own build- vol. xxvi, no.7, february 15, 2010—Crain’s New York Business (issn refrigerated.” ness owner’s green conscience rather than ings, so they have little incentive to make 8756-789x) is published weekly, except for combined issues June to his or her pocketbook. Some give away upfront investments. 28/July 5, Aug. 30/Sept. 6, and Dec. 20/Dec. 27, by Crain Com- Sign-up rate of just 1% munications Inc., 711 Third Ave., New York, NY 10017. Periodicals tens of thousands of dollars for major up- Among the underused programs is postage paid at New York, N.Y., and additional mailing offices. even in times of swelling deficits,the fed- grades, but are so confusing that small NYSERDA’s Audit Program. Since 2000, Postmaster: Send address changes to: Crain’s New York Business, eral and state governments have been put- businesses spend tens of thousands of dol- the agency has completed 2,214 survey Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (888) 909-9111.Fax ting money into energy-efficiency efforts lars on consultants. projects in the boroughs and Westchester (313) 446-6777.$3.00 a copy, $59.79 one year, $109.79 two years. that ought to help places like Gourmet That’s what Gourmet Guru did. Mr. County,or only about 200 a year.For as lit- (GST No. 13676-0444-RT) ©Entire contents copyright 2010 by Crain Communications Inc. Guru.Yet only about 1% of the small busi- Roy wanted to put a “green roof ” with a tle as $100, engineering firms offer energy All rights reserved. nesses in New York City have tapped into compression system on a new warehouse audits. A more comprehensive audit pro- those programs, according to a study to be to reduce costs by $30,000 per year. The See ENERGY on Page 23

2 | Crain’s New York Business | February 15, 2010 20100215-NEWS--0002,0003-NAT-CCI-CN_-- 2/12/2010 7:09 PM Page 2

Stevie Mo Vaughn’s wonder? No more home runs Blackstone’s Schwarzman has a very, very bad week Builds affordable-housing empire BY AARON ELSTEIN investors seem to have learned a lesson scooping up distressed properties about Blackstone Group Chief Executive Stephen Schwarzman: When he’s selling something, you may not want to be buying. After all, people who bought into Black- stone’s super-hyped initial public offering in the summer of 2007 got badly burned.Shares debuted at $31 each, then quickly sank; they trade today for less than $13. There also was the flip of Equity Office Properties. Blackstone bought Sam Zell’s commercial real estate empire for $39 billion in early 2007, then promptly resold many of the properties at top-of-the-bubble prices to developer Harry Macklowe,Morgan Stanley and others. “Today, these buyers are saddled with loads of debt,depressed real estate values and rising vacancies,” observed credit- -90% rating agency DBRS in a re- PLUNGE in port last month. Blackstone Group fees Now Mr. Schwarzman is generated by back,trying to line up buyers successful IPOs for some of the companies owned by his renowned private equity firm, which invests about $100 billion for some of the world’s top pension funds and other big institutions. But buyers are driving a much harder bargain this time around. So little interest, it had to cancel in fact, Mr. Schwarzman’s biggest offering, a proposed $1.8 billion IPO of Travelport, got such a poor reception last week that bankers canceled the deal.A day later,Black- stone’s Merlin Entertainments Group, owner of Madame Tussauds wax museums, announced it was putting off plans for an IPO that would have valued the company at more BY AMANDA FUNG than $3 billion. A smaller public offering for a packaging company finally got done, but six months after Mo Vaughn set up Omni New York in 2004, the only after Blackstone and its underwriters made concessions. fledgling real estate firm struck, snapping up a 286-unit affordable Markets everywhere have tumbled in re- housing complex in the Bronx. By the end of its second year, Omni cent weeks amid global worries that Europe New York had tripled its holdings to a total of 869 units. REHAB HABIT: Mo must orchestrate a massive bailout of Greece, As far as most people were concerned, however, Mr. Vaughn was still Vaughn (right) and and Blackstone is hardly the only private eq- Eugene Schneur uity shop having trouble unloading compa- a Mets first baseman, even though his baseball career ended in 2003. revitalized a drug- “I wanted people to take us seriously and know that we were the real infested five-building nies:Thomas H. Lee had to put off the $500 deal,” says Mr. Vaughn, who is seated at a Brooklyn eatery with his complex in Brooklyn, million IPO of a business-services company. partner, Eugene Schneur, explaining his transition from baseball hero and made it a “The market is getting wise,” says David decent place to live. Menlow, president of research firm IPO Fi- to real estate mogul—albeit one whose new uniform includes not just nancial Network in Millburn, N.J. “Investors sharply tailored suits but large diamond-encrusted hoop earrings. “I aren’t interested like they once were in putting wanted respect.” money in the pockets of private equity firms.” These days he’s got it—not as the American League’s former MVP That’s especially troubling news for a big but as the managing director of one of the city’s best-regarded and PE outfit like Blackstone, which collects fees most active buyers and managers of affordable housing. Along the way, for managing the companies it acquires Mr. Vaughn and company have earned a place as one of the city’s top and—typically—loads up with debt. But the big money, the kind that lures the world’s choices for turning around distressed residential properties. highest rollers, comes from the performance Today Omni ranks as a midsize firm capable of competing with the fees that Blackstone realizes from its in- bigger players, swallowing up sprawling properties such as the decrepit vestors when it sells a company back to the 14-building, 416-unit complex in the South Bronx that Omni bought public for substantially more than it paid. the mortgage on at a foreclosure auction—with the city’s blessing—in The industry calls this IPO boost “harvest- See MO VAUGHN’S on Page 12 ing,” and it’s the main reason Blackstone’s private equity funds have returned 25% since 1987, according to Morgan Stanley, compared with just 9% for Standard & Poor’s 500.

buck ennis “Management fees keep the lights on, but See STEVIE on Page 4

February 15, 2010 | Crain’s New York Business | 3 20100215-NEWS--0004-NAT-CCI-CN_-- 2/12/2010 7:08 PM Page 1

Rival Aqueduct bidders IN THE MARKETS are champing at the bit by Aaron Elstein

Ready to jump into enues for the state of New York. more than a decade ago to stealing “Time is of the essence,”says As- $500,000 from city agencies.As a re- race if winner falls; semblyman J. Gary Pretlow,chair of sult, Mr. Greene and his firm, the deadline in sight the Committee on Racing and Wa- Darman Group, relinquished their Client Relations 101 gering.“If AEG falls by the wayside, 0.6% stake in the project. there are other qualified bidders. At this point, AEG has less than at AllianceBernstein BY AMANDA FUNG Aqueduct is still viable.” a month to meet the official deadline to close the deal. et a wall street broker in a with legal and financial doubts Clean slate condition Among those who think that will candid mood and maybe he’ll growing over the fate of the winning at this point, AEG, a consor- be a tall order is SL Green,Manhat- tell you this age-old truth: Yes, bid to develop the racino at the tium—which includes Rev. Floyd tan’s largest commercial landlord, G it’s important to make money for a Aqueduct Raceway,rival bidders are Flake’s Empowerment Development which is part of a rival bidding con- hoping they will have the chance to Corp. and several New York-based sortium that includes Hard Rock client, but the more important thing is to fill the gap. firms including Turner Construction Entertainment. keep the client. AllianceBernstein knows Their expectations come on the “We question whether the AEG this all too well.The renowned firm, home heels of a week in which New York group can meet such conditions,” to some of the Street’s best research minds, state Assembly Speaker Sheldon Locals are said an SL Green spokesman when Silver, D-Manhattan, and others the decision was made late last has been losing clients since early 2008 and called for an investigation of the hoping to avoid month. Last week, sources close to last week reported another $17 billion in bloomberg news process by which Aqueduct Enter- the company said that it was stand- tainment Group was selected late going back to ing by and would be happy to jump asset outflows during the fourth fund giant Vanguard hired his new last month to build a facility with back into the project. quarter.Over the past two years,cus- outfit to manage some money.) 4,500 video lottery terminals at the square one The picture was much the same tomers have yanked $118 billion out His replacement at Alliance- decrepit Ozone Park,Queens,horse at Penn National Gaming,whose fi- of the firm, which manages about Bernstein, former Goldman Sachs racing track. nal bid had included a promised up- $500 billion. As a result, Alliance- Group banker Peter Kraus (above), Meanwhile, frustrated residents front payment of $301 million. Bernstein’s net income fell by a third stepped in and aggressively cut costs. of the surrounding neighborhood “We remain interested and con- last year, to $556 million. Head count has fallen by 23% since and local officials are hoping that if and Levine Builders—insists that it tinue to believe our proposal is supe- Clients are leaving for that most the third quarter of 2008, or 4,400 a replacement for AEG is needed, it will be able to meet all the conditions rior in every aspect,”says Eric Schip- basic of reasons: lousy performance. people. And fund performance gen- can be found without having to go set by Mr.Silver at the time that Gov. pers, senior vice president of public Three of the firm’s largest interna- erally improved last year. back to square one. They want to David Paterson announced the win- affairs at Penn National. “We would tional equity funds have a rock-bot- Mr. Kraus also has told analysts avoid reopening a bidding process ner. Those include an upfront cash be eager to participate and talk about tom five-year track record,according that the firm, best known for trying that has already ground through two payment of $300 million and no the merits of our proposal.” to fund tracker Lipper. In addition, to buy stocks on the cheap, is mak- rounds spread over the past seven criminal convictions for the partners. The other bidders, Delaware many of its U.S.-oriented funds held ing a bigger push into bonds. He in- years. The project is expected to Last week, AEG insisted that it North and a team lead by MGM huge amounts of shaky financial sists AllianceBernstein “made sig- generate 1,500 construction jobs can muster the needed cash,and it cut Mirage and developer R. Donahue stocks in 2008, which was a big rea- nificant progress in 2009,” but and 1,000 full-time positions and ties with one of its partners, develop- Peebles,are considered long shots at son former Chief Executive Lewis recognizes it will take years to win generate $1 million a day in rev- er Darryl Greene,who pleaded guilty best in any race to succeed AEG. Sanders was ousted at the end of that back customers. “This is, as you year. (Mr. Sanders has since started know,a longer game,”he said during his own firm, and last month mutual a conference call last week.

THE DECLINE IN BOND ISSUANCE from U.S. companies last week. In all, companies raised $7.8 billion in debt, down from $34 billion the prior 77%week, as investors reassessed market risk, according to Bloomberg. Stevie wonder? No

Continued from Page 3 the public at least three times in the to really earn money … it is all about past, according to Bloomberg data. generating performance fees,” Op- Graham’s balance sheet is ugly: $2.4 penheimer & Co. analyst Chris Ko- billion in long-term debt, less than towski reported last month. $200 million in cash, and a negative Blackstone’s performance fees net worth of $735 million.To get the have plunged 90% in recent years, a IPO out the door last week, under- big reason why it has reported only writers cut the offering price by 38%, one profitable quarter since going and Blackstone promised not to sell public—the quarter of its IPO. The any of its 75% stake in the company. firm generated $106 million in per- Last December,Blackstone swal- formance fees last year, according to lowed a 25% price cut to complete the a Morgan Stanley estimate, com- IPO for hospital staffer Team Health pared with $1.1 billion in 2007. Holdings, and also agreed to keep its stake intact. Heading into its IPO, Eight IPOs planned this year Team Health’s $600 million in long- the prospect of restoring these term debt was about six times its cash fortunes was surely a big reason Mr. on hand,and the company had a neg- Schwarzman last fall said he was ative net worth of $230 million. planning eight IPOs for his compa- A more accommodating IPO nies over the next 12 to 18 months. market could be worth a fortune to Yet investors are signaling they have Blackstone in 2010. In a best-case reservations about the quality of the scenario, it stands to reap $791 mil- companies Blackstone has been of- lion in performance fees this year, fering. A Blackstone spokesman Morgan Stanley says; but in a diffi- didn’t return a call seeking comment. cult market,it could pocket as little as Graham Packaging, for example, $211 million. That’s a half-billion- had been in Blackstone’s portfolio for dollar difference—major money for a 10 years,and the firm had tried to sell firm that generated an estimated the maker of Ragú pasta sauce jars to $1.5 billion in revenue last year.

4 | Crain’s New York Business | February 15, 2010 CN013489 2/5/10 3:29 PM Page 1

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Donatella adds cookbook to menu tar restaurateur Donatella Arpaia’s brand is about to get a lot bigger.The kitchen hottie’s first Scookbook is coming in April, targeting inexperienced cooks—though she’s going for foodies, not fans of Rachael Ray’s or Sandra Lee’s quick-and- easy styles. “I’m relating to women who know about food and go out to eat, but were never taught in the kitchen,” she says. Most recipes in Donatella Cooks: Simple Food Made Glamorous, published by Rodale, have no more than six ingredients, but they’re all fresh. Ms. Arpaia is also close to inking a deal for her own television show, though she would give no further details on that development. The relationship between the co-owner of four critically acclaimed restaurants— including Anthos and Kefi—and her chef and business partner Michael Psilakis has cooled over the past year. She recently bought out his share in Mia Dona, where she completely revamped the menu. “More and more, we are moving in new directions,” she says. eBay gives round to their house and read it to York, Miami and Washington, writer a thrill them.” D.C.

NEWYORKCITY BOSTON SEATTLE SANFRANCISCO LOSANGELESCHICAGO some authors check their Rum gets Ex-banker sets Amazon ranking to see how their into fashion sights on Haiti books are doing, but best-selling thriller writer Lee Child has a designers aren’t the only ones retired Marine Midland banker system for gauging success even using Mercedes-Benz Fashion Sara Henderson founded her before his books are published. Week to launch new looks. On nonprofit, Building Bridges to the 11 West 42nd Street He checks eBay prices for the Wednesday, Rums of Puerto Rico Future, after a trip to tsunami- advance reading copies of his will announce from the tents a ravaged Indonesia. latest tomes, which his publisher new ad campaign that touts Now, the 68-year- is pleased to announce the following sends out in brands like Bacardi, Don Q, Ron old banker turned renewal and expansion the months Llave, Ron del Barrilito and Palo disaster-relief before Viejo.The $2 million outdoor, volunteer has her publication print and broadcast campaign will sights set on Haiti. MICHAEL KORS (USA), INC. to drum up feature urbanites sipping rum Launching the nonprofit was represented by interest cocktails along with the Rums of her first foray into volunteer work. Glenn Markman and among Puerto Rico logo and images of “I was always one of those people Danielle Zimbaro reviewers each brand’s bottle.The message who ‘gave at the office,’ ” she

ATLANTA of Cushman & Wakefield, Inc. and is basically that you are what you recalls. But her skills as a merchant journalists. drink, apropos of the tagline: “A banker came in handy when it By that reflection of who you are.” came to pulling together all the WASHINGTON,D.C. measure, According to the association, different elements of the project. 61 Hours, Puerto Rican rums account for “As a banker, you know where the latest 75% of rum consumption in the the money is,” Ms. Henderson in his Jack Reacher series, should U.S., and New York is the biggest says.

MILAN LONDON PARIS FRANKFURT MUNICH SÃOPAULO RIODEJANEIRO BEIJING BANGALORE be his best-selling book yet. “It market in the country for the cane Ms. Henderson’s organization was at the highest prices I’ve spirit. Javier Figueroa, director of built 51 houses, for $3,100 each, for leasing information, please contact: seen,” Mr. Child said last week at Rums of Puerto Rico, says the in a destroyed village in the the Museum of Modern Art, campaign “will help to elevate the province of Aceh, which had lost Blythe Kinsler where Random House threw a image of rums in our key four-fifths of its population. It Gregory W. Conen party for several authors with markets.”The ads will run in New helped residents set up a dairy upcoming books. “It’s a and an agricultural 212.715.0300 pretty reliable indicator.” cooperative. It also gave Top bids for advance simple bookkeeping copies of past Jack Reacher lessons. “I think what novels were usually around we’ve done is replicable, $70 or $80, he said.Two possibly in Haiti,” says advance copies of 61 Hours, Ms. Henderson, who splits to be published in May, her time between recently sold on eBay for Indonesia and New York, more than $90. Mr. Child where her 10 figures the top bidders are grandchildren live. more likely collectors than overeager fans. “I hope Contributors: Lisa Fickenscher, they’re collectors,” he said. Matthew Flamm, “For that money, I’d go Hilary Potkewitz 20100215-NEWS--0007-NAT-CCI-CN_-- 2/12/2010 11:36 AM Page 1

NEIGHBORHOOD JOURNAL

Ms. Coleman says. “But I do not Academic land grab in the Bronx have sufficient space on campus to serve my college’s needs, which needs to be my priority.” She notes that about 11,000 stu- the surroundings and atmosphere A new library and academic Community college, dents are taking classes this semes- contribute richly to its high gradua- building are already under construc- bursting at the seams, ter in the same space used by just tion rate. Plus, more than 80% of tion but won’t be completed until 7,000 students this time last year.To graduating students go to college— 2012.The 98,000-square-foot build- could displace alleviate that pressure, the college many to BCC or other city colleges. ing, estimated to cost about $102 has come up with a plan to reclaim million, is the college’s first major top high school one of its buildings, five-story New building ready in 2012 construction project since it took Nichols Hall. neighborhood officials are con- over the campus from New York BY HILARY POTKEWITZ The problem is that for the past cerned that removing the high University nearly four decades ago. 23 years,that building has been home school students from the college en- In addition to the library,the new ronx community Col- to one of the borough’s top high vironment will disrupt their facility will boast 15 classrooms, lege has more students schools, University Heights Sec- Backers say the progress. group study areas, a café and an in- than it knows what to do ondary School. The 400-student Bronx Borough President Ruben formation technology center. with.Though that would school consistently ranks in the top collegiate setting Diaz Jr.has come out against the col- In the meantime, a public hear- normally be a good 15% in the city in Department of Ed- lege’s request. In January, he sent a ing on the move is scheduled for Bthing, the crunch may edge out one ucation progress reports. Last year, is key to the high letter to the college’s president urg- March 11 at South Bronx High of the best high schools in the UHSS boasted an 85% graduation ing her to reconsider the decision to School, one of the proposed reloca- neighborhood. rate,nearly double the boroughwide school’s success evict the high school,predicting that tion sites for the University Heights The two-year college, whose graduation rate, which was in the “it would have a negative effect on high school. campus is at West 181st Street and 40% to 50% range last year. current and future students … [and] The growing pains being felt at University Avenue, has seen its en- also put a stop to an educational BCC are becoming more common. rollment surge more than 50% over Community mobilizing partnership that serves as a shining During the recession, community the past year. “the important thing is that this example of one of the best methods colleges throughout the region have “We’ve reached maximum ca- school is doing well,” says Xavier plans to take over the building this in improving student lives.” had to scramble to keep pace with pacity,and we’ve even expanded our Rodriguez, district manager of summer. Nearly 800 parents and BCC officials say they’re simply soaring enrollments. Suffolk Coun- Saturday and Sunday classes,” says Bronx Community Board 5. “Now students showed up at a January doing their best to keep up with the ty and Nassau County Community Mary Coleman, senior vice presi- that it’s become this special school meeting with representatives from mushrooming size of the student colleges have reported a 33% in- dent of finance and administration that’s achieving the benchmark that the Department of Education and body in an urban environment crease in applications since last year. at BCC. this [mayoral] administration the college to protest the high where space is at a premium. “I’m Some schools are stretching class “Every space on this campus, ap- wants, you’re going to move it school’s relocation. gratified that they’ve experienced schedules deep into the night to fit propriate for learning or not, is be- away?” Many say that a key reason for engagement on our college campus, everyone in, with classes in some ing occupied,” says BCC President In fact, the community is mobi- the school’s success is its location on and it’s provided the impetus for cases starting as early as 7:15 a.m. Carolyn Williams. lizing to oppose the college, which the college campus. They say that them to continue their education,” and as late as 9:30 p.m. or 10 p.m.

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February 15, 2010 | Crain’s New York Business | 7 20100215-NEWS--0008-NAT-CCI-CN_-- 2/12/2010 5:58 PM Page 1

Mr. Flake said they discussed whom the influential pastor might support in the governor’s race. AG CANDIDATES Pluses and minuses THE INSIDER “We both agreed that I probably THE DEMOCRATIC RACE for attorney general—which is would have to wait and see how the unofficial until incumbent Andrew Cuomo announces a by Erik Engquist and Daniel Massey process moved along,” Mr. Flake run for governor—features half a dozen candidates, each told The New York Times, “but I with strengths and weaknesses. A snapshot: think he’s doing what any Eric Dinallo has raised $1.8 million since stepping candidate does in terms of trying to down as state insurance superintendent. His résumé fits determine where his support is bloomberg news Eric Dinallo the position—he was a chief lieutenant to AG Eliot Spitzer— coming from.” and Italian-Americans have done well in statewide He added, “It was not really some elections. His wife, former state housing chief Priscilla Almodovar, is of discussion of which way I might be Puerto Rican descent and can help with the Latino vote. Mr. Dinallo, who leaning, as opposed to whether, if he teaches at New York University, is essentially campaigning full-time now and runs, where I might be.” has become familiar to CNBC viewers. He could be criticized for missing the The governor’s chief AIG scandal while he was regulating its insurance business, but he says the spokeswoman says, “An company’s losses were in noninsurance units that he did not oversee. endorsement was not discussed.” Kathleen Rice A growing sense that the bid Nassau County District Attorney is now was awarded for political reasons, the only woman in the race, which is why the other and news of a federal probe that candidates hope that state homeland security chief Denise appears to be examining it, have O’Donnell decides to run. Ms. Rice, who has $2.4 million, Mr. Paterson and Assembly could appeal to female and suburban voters. Rivals may paint her as a one-issue candidate: She has focused on newscom photos Speaker Sheldon Silver blaming each newscom WHAT HATH GUV WROUGHT? Paterson (left), Flake met in state offices just after Aqueduct pick. other for the selection of AEG. Mr. drunken driving, which is not relevant to the AG job. Kathleen Rice Silver raised the volume last week Sean Coffey made a fortune off the by asking the state inspector Worldcom case and has raised much of his $1.67 million general to investigate.The from fellow lawyers. He can self-fund more than the other governor responded by noting that candidates; a viable bid requires about $7 million. He was Two men in a room. Mr. Silver—not Mr. Paterson— once a prosecutor, but competitors will cast him as a class- designed the bid selection process. action lawyer. He is new to campaigning. bloomberg news Sean Coffey The fact that state Sen. Eric One helluva gamble Schneiderman and Assemblyman Squeezing cash Richard Brodsky hold elected posts would usually be an from grapes advantage, but the public currently holds the Legislature in ov. david paterson’s repeated insistence that especially low regard. To avoid the taint, newscom he did not discuss a gubernatorial endorsement proponents of a Paterson both will argue—with justification—that Eric with the Rev. Floyd Flake three days after administration proposal to allow they are reformers. Rivals will point out Schneiderman wine sales in supermarkets say selecting Mr. Flake’s group to redevelop their lack of law-enforcement experience. changes to the plan announced last If Ms. O’Donnell joins the race, she would be the lone Aqueduct Racetrack has two purposes.The week will improve its chances of upstate candidate. She cannot raise money until she leaves passing the Legislature. primary one is to dispel the notion that the group was chosen newscom the Paterson administration, but she could quickly restart G To help close a new budget gap Richard Brodsky for political reasons. But an overlooked aspect is the fact that her 2006 campaign, which has $450,000 in its account. of at least $750 million, the fee for elected officials cannot use state offices—like the one where wine-selling licenses would roughly Mr. Flake and the governor met—for campaign business. double, raising $309 million over two years instead of $147 million. such as the Fulton Street Transit A spokesman for proponents of the Center, will jeopardize an already measure says the Legislature will seriously underfunded capital plan have a hard time turning down so without directly addressing the much money. Last year, lawmakers Authority’s funding crisis,” Mr. rejected a similar plan that the Anderson wrote. governor said would raise $155 The council members—who million in licensing fees. don’t control MTA spending—say other cities are using stimulus funds Transit aid takes to prevent service cuts. Albany detour A Grimm proposal city transportation republican michael grimm, who Commissioner Janette Sadik-Khan says is challenging Rep. Michael the Department of Transportation in McMahon, D-Staten Island, Albany is one of the best state DOTs proposes eliminating the capital in the country, but its sign-off should gains tax for two years “so that not be required for money that investors have incentive to go back Washington allocates to her agency. into the market to invest in small Federal aid “should not be parked in businesses, technology and the Albany for a year to review,” she says. surplus housing stagnating throughout the country.” Mr. Grimm’s proposal reflects Builders weigh in the fact that the former FBI agent on MTA budget is not an economist. With the capital gains tax at a 68-year low of new york Building Congress 15%, investors are hoarding cash President Richard Anderson has not because taxes would devour written to City Council Speaker profits but because they fear they Christine Quinn and Transportation wouldn’t make any. Committee Chairman James Vacca Mr. Grimm’s 0% tax could opposing their call for the trigger profit-taking, driving the Metropolitan Transportation market downward, and its two-year Authority to move as much as $121 expiration would discourage long- million in stimulus money from term investing. Mr. McMahon’s capital to operating expenses. spokeswoman says it “would blow “A transfer of funds allocated an even bigger hole in an already and committed to capital projects, huge deficit.”

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8 | Crain’s New York Business | February 15, 2010 20100215-NEWS--0009-NAT-CCI-CN_-- 2/11/2010 5:40 PM Page 1

SMALL BUSINESS Making search engine marketing pay

pany has been with Clickable since it head-to-head with a competitor.” to dodge competition from other Clickable aims to launched its platform in 2008. Clickable has had a strong firms that eventually wake up to the help entrepreneurs BoaterExam’s co-founder, Alex launch.The company says it is set to small business search market. Czartoryski, believes some of his turn a profit in the third quarter and Meanwhile,Mr.Biro of Scan2Us target Web ads campaigns might be “tighter” if he plans to hire 100 new employees in finally has four solid leads. It hasn’t pored over every keyword and bid the next year in New York and India. been cheap. He signed up for Click- himself. But he now devotes only a able’s Assist service for $300 per BY MATTHEW SOLLARS few minutes to that task each day, Hurdles ahead month,which gives him access to the rather than the two days a week he but challenges remain. Click- company’s human search experts. hen andy biro spent in the past.“It [also] avoids the able’s solution has to be both “They led me to water,” he says. wanted to boost trap of making a bid without the an- straightforward and cost-effective “They were honest, and they karjean levinekarjean online sales for alytics behind it,”he says,citing “the enough to retain small business cus- showed me where we were doing BIG IDEA: Clickable’s David Kidder says the digital document emotional bids when I’m going tomers. And the company will have poorly.” goal is to turn campaigns into transactions. storage company Scan2Us.com,W he went to a search- marketing reseller that promised to do everything for him and produce buckets of clicks. Three months and $1,200 later, the marketing and sales director of Scan2Us had plenty of clicks—but not a single sales lead. Search engine marketing promises a relatively low-cost way to reach new customers who are, theo- MORE BANK retically, already looking for your services. It sounds simple: In a process controlled by big search en- gines, small businesses bid on key- FOR YOUR words to buy sponsored slots on search results pages. The reality is often disappointing “[It’s so complex], it’s like a whole new religion,” Mr. Biro says. Enter Clickable, a Manhattan- based startup that is winning thou- BUSINESS. sands of small business clients by promising to be their high priest and MORE CONVENIENCE. MORE SERVICE. MORE CONTROL. guide.Founded in 2006,the company has built a platform for small ad- vertisers that want access to Google, Yahoo and Microsoft search markets. Clickable, which has $22 million in financing from private investors, automates those marketing FREE High-Performance campaigns. TD Bank BusinessDirect Online Banking “It turns out that advertising online is not easy,” says David Kidder, the company’s chief executive.“Our Deposit ‘Til 6pm, Available Next Day goal is to convert search engine marketing campaigns into e-commerce Open Early, Open Late transactions.” How it works Live Customer Service 24/7 clickable’s platform allows users to manage keyword campaigns across the big search networks and across multiple locations and products, virtually from one screen. Al- gorithms—fueled by 60 or so pro- grammers and developers in THREE YEARS IN A ROW! India—then recommend keywords, “Highest in Customer Satisfaction with Small Business Banking” bids and other adjustments based on – J.D. Power and Associates a campaign’s performance. Click- able’s human marketing “ninjas” in- teract with customers if they have a Visit your nearest TD Bank, connect to question. The company, which also www.tdbank.com has 55 employees in New York, col- or call 1-888-751-9000 and open a business account today. lects a 5% commission on advertising spending, with a minimum commission of $129 per month. Ottawa-based BoaterExam.com, which provides online boating and hunting licensing exams in the U.S. and Canada, spends well into the six figures per year on search advertising.The com- To sign up for Crain’s twice-weekly SMALL BUSINESS NEWSLETTER, go to TD Bank N.A., formerly Commerce Bank, received the highest numerical score in the proprietary J.D. Power and Associates 2007-2009 Small Business Banking Satisfaction StudiesSM. 2009 study based on 7,226 total www.crainsnewyork.com/smallbiz responses, measuring 27 ﬁnancial institutions and measures opinions of small business customers with annual revenues from $100,000 to $10 million. Proprietary study results are based on experiences and perceptions of customers surveyed in July-August 2009. Your experiences may vary. Visit jdpower.com. Some restrictions and fees may apply; check your account agreement for more information. | TD Bank, N.A.

February 15, 2010 | Crain’s New York Business | 9 20100215-NEWS--0010-NAT-CCI-CN_-- 2/12/2010 2:16 PM Page 1

VIEWPOINT A flat-out faulty MTA tax plan editor in chief Rance Crain publisher, vp Jill R. Kaplan fundamental principle of the taxes from the city than it returns in services. Its net gain EDITORIAL “mobility tax” implemented a year ago to from the other MTA counties is about $1.5 billion, one editor|editor of the editorial board fund the Metropolitan Transportation study shows. Xana Antunes managing editor Glenn Coleman Authority was that it was applied evenly Given these discrepancies, adding a new one would be deputy managing editors Valerie Block, across the agency’s 12 counties, reflecting unconscionable. Erik Ipsen contributing editor the fact that the entire region depends on Every business and resident in the MTA region benefits Elizabeth MacBride columnists Greg David, Alair Townsend the transit system. from the transit system, even those who don’t use it. Imagine politics editor Erik Engquist Last week, heeding a growing outcry from the suburbs, the gridlock on suburbanites’ roads if they all drove. Many pulse editor Barbara Benson senior reporters Theresa Agovino, AGov. David Paterson proposed abandoning that premise. He would never reach their high-paying jobs in the city.The Aaron Elstein, Lisa Fickenscher, called for a 59% increase in the MTA payroll tax paid by LIRR carries weekenders and their spending money to Long Matthew Flamm, Miriam Kreinin Souccar reporters Amanda Fung, Daniel Massey, New York City businesses and a 50% decrease for those in Island. Without the MTA,suburban economies and Adrianne Pasquarelli, Hilary Potkewitz the other seven counties.The tax, established last year, is property values would art director Steven Krupinski deputy art directors Carolyn McClain, currently 0.34% of payrolls in all 12 counties. plummet. Daniel Mednick The bid to vary staff photographer Buck Ennis The governor’s plan is short on both dollars and logic. Implementing Mr. copy desk chief Wendy Zuckerman The $230 million that it would raise would not fill the regional payroll Paterson’s plan would copy editor Thaddeus Rutkowski research editor Denise Southwood MTA’s newest budget hole—approximately $400 set a dangerous assistant research editor Maia Blume million—and would do nothing about the $383 million taxes is short on precedent. If he editorial/research interns Emily Laermer, Selena Shen deficit that triggered the announcement in December of dollars and logic believes that MTA www.crainsnewyork.com painful service cuts. taxes should be based web editor Brian Tracey senior producer Elisabeth Butler Cordova The governor says a payroll tax of 0.54% in the city and on the amount of producer Kira Bindrim

0.17% in the suburbs would be “more equitable,” because service, why have one EDITORIAL AND ADVERTISING OFFICES 90% of weekday riders are city-bound.That statistic is rate for the five 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 irrelevant. Consider instead: boroughs and another for everyplace else? Given this advertising: 212.210.0259 The per-ride subsidies for suburban rail and bus lines thinking, there would have to be different rates for every Cable craincom nyk Fax 212.210.0499 are far greater than those for their city counterparts. neighborhood.This is a can of worms that the governor Entire contents ©copyright 2010 Crain Communications Inc. All rights reserved. Subway fares account for 69% of subway operating should never have opened. ®CityBusiness is a registered trademark of MCP costs, while commuters cover 55% of Metro-North expenses, Any new tax should be applied equally across the region, if Inc., used under license agreement. and Long Island Rail Road users pay just 44%. not the state, and accompanied by MTA reforms that save TO SUBSCRIBE: Only New York City businesses pay MTA taxes on money. New York City’s transit system powers an economic Call 888.909.9111; fax 313.446.6777. $3.00 a copy, $59.79 one year, $109.79 two years. commercial property sales and mortgages of $500,000 or engine that benefits everyone.To ask the most efficient part www.crainsnewyork.com more. We alone pay 50 cents for yellow-cab rides. No MTA of the network to pay more makes no sense.The Legislature ADVERTISING AND MARKETING taxes are imposed exclusively in the suburbs. should pull the emergency cord before this plan leaves the advertising director Trish Henry real estate sales manager Cornelius P. Gore Every year, the state extracts at least $10 billion more in station. senior account managers Irene Irvill, Courtney McCombs, William E. Squitieri account executive Anthony Mowad sales manager, classified print & online John Gallagher CRAIN’S ONLINE POLL COMMENTS sales coordinator, print & online Lulé Haznedari newsletter product manager WAS THE NY SENATE Alexis Barney credit Todd J. Masura 313.446.6097 RIGHT TO EXPEL HIRAM marketing director Amy Crossman Best cure for hospitals director, audience development MONSERRATE? John LaMarca FIX OUR SICK HEALTH CARE SYSTEM straight-talking mayor who eight years in has assistant circulation manager Date of poll: Feb. 10 mastered the art of spin.” Rosalie Ford 354 votes i read your editorial “The best route for St. The story mentions a $4.9 billion deficit general manager, interactive Vincent’s” (Feb. 1). How laughable is it that and the possible slashing of 19,000 city Marc Minardo Yes. He lawmakers willing to spend a state into pork- employees, including 8,000 teachers.The web developer, interactive brought Chris O’Donnell 85% laden bankruptcy are threatening closure of mayor is quoted as saying that at the

. shame on the Legislature hospitals because they operate in the red? Department of Education, “there’s nothing NEW YORK PRODUCTION and lost his These hospitals provide real services. What they can cut other than people.” production and pre-press director claim to be a they need is continued independence under Sure, he’s “mastered the art of spin.” How Michael Corsi representative well-executed not-for-profit management. many PR people, political consultants and advertising production manager

of the people. So-called “economies of scale” offer no government relations specialists were added to Suzanne Fleischman Wies 15%. assurances of success (just look at the banking the city payroll to help with the spinning? How PUBLISHED BY CRAIN COMMUNICATIONS INC. industry). In addition, a business model does the DOE cut teachers yet find $143,000 chairman Keith E. Crain prioritizing owner values instead of caregiver to add a political operative fresh from the president Rance Crain No. He was not found values is utterly wrong for health care. mayor’s campaign staff? secretary Merrilee Crain guilty of a felony, and This country’s health system is in deep Since Mr. Bloomberg spent $100 million treasurer Mary Kay Crain he’s appealing his executive vp, operations William Morrow trouble because we are perilously close to from his $16 billion fortune to stay mayor— senior vp, group publisher Gloria Scoby misdemeanor abandoning the concept of health care as a knowing there was a budget problem—why conviction for group vp, technology, circulation, service in favor of viewing it as a commodity. doesn’t he become a hero and write a check to manufacturing Robert C. Adams assaulting his vice president/production & girlfriend. It’s up to —miriam s. michel NYC for a few billion to help it through the Jackson Heights, Queens financial difficulties? At the very least, he manufacturing David Kamis voters, not fellow chief information officer Paul Dalpiaz senators, to expel should personally pick up the full tab for all the corporate circulation/audience him if they choose. BLOOMBERG’S BILLIONS campaign workers whose salaries and benefits development director Kathy Henry now are saddled on the backs of taxpayers. founder G.D. Crain Jr. (1885-1973)

newscom how amusing to read “The Insider” about —ed jaworski chairman Mrs. G.D. Crain Jr. (1911-1996) For this week’s questions: Mayor Michael Bloomberg’s budget Executive vice president Go to www.crainsnewyork.com/poll to have your say. presentation (Feb. 1), especially the last Madison-Marine-Homecrest Civic Association sentence: “It was a brilliant performance by a Brooklyn

10 | Crain’s New York Business | February 15, 2010 20100215-NEWS--0011-NAT-CCI-CN_-- 2/12/2010 2:07 PM Page 1

OPINION

17,500 city workers. So the mayor is saying each city job required $74,300 Why Dimon bonus in revenue. The bottom line: The taxes on Mr. Dimon’s bonus would have paid the cost next year of 28 workers. will lead to layoffs They are likely to lose their jobs instead. The city will have to fire even he war against wall street, and especially more workers because Goldman bonuses,continues unabated.Nothing Wall Street Sachs’ board gave CEO Lloyd Blankfein a $9 million restricted does—paying its bonuses in stock, reducing them stock bonus rather than the $100 despite the fact the firms are reporting record prof- million in cash some thought it its, and promising to reduce overall compensation could have justified, given the firm’s levels—stops The New York Times from writing stories that al- record profits. The number of city T workers a cash bonus that size would ways seem to include the sentence “On pay, Wall Street seems have paid for: 175. to have reverted to its old ways.’’ Some city officials I know say the switch to stock isn’t the biggest Actually, the securi- been hit by the highest threat. They are focused on the ties industry is changing New York City rate: prospect that Wall Street pay as a per- the way it pays people, 3.648% for any amount cent of revenues will decline signifi- and the real story is the over $500,000. cantly in coming years. The figure impact that is going to For simplicity, call used to be around 50%. This year, have on New York City. the combined state and Goldman paid out only 36% in com- Consider the case of local income rate 13%. pensation, the lowest share in more J.P. Morgan Chase Tax due on a cash bonus: than a decade, and every securities CEO Jamie Dimon, a little more than $2 firm has promised to reduce its fig- Steven Mayer, CPA whose $16 million million. Tax due on the ure. The math is more complicated, 6 East 43rd Street bonus was paid entirely restricted stock bonus? but the move will cost New York City New York, NY 10017 in restricted stock. If the GREG Nothing for years, and and the state billions in tax revenue. www.amper.com 212.682.1600 bonus had been paid in DAVID then only when it is sold. New York is stuck with Wall “Seeing Beyond the Numbers...”sm [email protected] cash, all of it would have Now Mayor Michael Street as its economic engine for the been subject to the re- Bloomberg’s budget foreseeable future.Those in the city cently increased higher tax rate for plan says that cuts in the state budg- who indulge in the populist anger New Yorkers making more than et will cost the city $1.3 billion and, against it need to acknowledge the $500,000: 8.97%. It would also have if enacted, will force him to lay off consequences.

each year with a balanced budget, prepare four-year financial plans and How to get state report on the fiscal outlook.It engen- ders budget responsibility on the part of the mayor and City Council. State legislators apparently feel in step with city no such constraints. They control Earn 1,000 bonus points, many big-ticket items for the state and the city—Medicaid benefits and espite all its challenges, New York City eligibility,school aid and public pen- EVERY night. will end this year with a balanced budget.A new sions—that are ripe for reform. Bad budget will be in place for the start of the next policy and excessive costs often have been bought and paid for with fat How refreshing. fiscal year on July 1. campaign contributions, and there New York state will not end this year with a are few carrots and no sticks for leg- balanced budget, and it is very unlikely that a new budget will islators to challenge the status quo. Get rewarded faster when you earn an additional 1,000 D City politicians are no more virtu- points for every qualifying night you stay from now until be enacted by the start of its next fiscal year. ous than those in Albany. They April 30, 2010—up to 20,000 points. The city spends and taxes heavily. But it balances its budgets budget as they do because they have to do more than promise and talk.We according to generally The state uses gim- need to find a way to circumscribe accepted accounting micks that violate good state officials’ actions and limit the principles and enacts practice, and it doesn’t damage they wreak on our state. them in a timely fash- use generally accepted We need to save them from ion. By contrast, New accounting principles. themselves, and figure out how to York state budgets are Because of the spend- impose on the state the same re- routinely late. The state ing appetites of elected quirements it has imposed on the Register at hotelindigo.com/1000NY isn’t required to balance officials, we face yawn- city. The Legislature could enact and book at 1-877-512-8796. its budgets. State law ing state budget gaps laws mandating them, but could merely requires that the for years to come. easily undo the strictures when they state comptroller certify Why is the state are inconvenient. Still, it might that revenues in the en- ALAIR such a comparative compel greater discipline. acted budget are suffi- TOWNSEND mess? It’s not because We could start the process of cient to cover opera- there’s better leadership amending the state Constitution, tions. What happens in New York City than but that also requires will in Albany. after that doesn’t matter. That’s like in Albany, although leadership in Or,if it becomes difficult to sell state a system under which you can get a Albany could help craft a solution. bonds, covenants containing the re- bonus based merely on projecting The answer lies in the city’s near- quirements could be included.More that you will deliver good results bankruptcy in 1975.That resulted in likely,legislators will wait until near- rather than actually achieving them. a state law requiring the city to end insolvency to do the right thing. Must be a Priority Club® Rewards member and must register member number in advance to participate in this promotion. To register or to obtain a list of participating airlines, complete offer details and Priority Club Rewards Membership Terms and Conditions, visit www.hotelindigo.com/1000NY or call 1-877-512-8796. CRAIN’S WELCOMES outside submissions to its opinion page. You may send a column of 475 words or fewer to © 2010 InterContinental Hotels Group. All rights reserved. Most hotels are independently owned and/or operated. [email protected]. Please include the writer’s name, address and telephone number.

February 15, 2010 | Crain’s New York Business | 11 20100215-NEWS--0012-NAT-CCI-CN_-- 2/12/2010 1:55 PM Page 1

Mo Vaughn’s affordable home runs

Continued from Page 3 pay their rent. Omni finances its Omni purchased the property Mr. Cestero. “They December.“Given their track record, deals using tax-exempt bonds and out of bankruptcy for $23 million restored it to a qual- they are ideally suited to deal with the proceeds from the sale of low- with financing from various city ity place for people troubled projects,” says NYC Hous- income-housing tax credits. agencies, including HPD, as well as to live by taking a ing Preservation and Development federal grants. The developer then very aggressive ap- Commissioner Rafael Cestero. Making money and doing good poured $25 million into refurbish- proach to renovat- Since 2004,Omni has spent over that is exactly what it did when ing everything from new elevators ing buildings.” $500 million buying and rehabili- it acquired the Noble Drew Ali and energy-saving appliances to 326 Today Mr.

tating 21 affordable-housing build- Plaza in the Brownsville section of security cameras. After two years of Vaughn, who buck ennis ings with a total of nearly 3,500 Brooklyn—the 2007 deal that put work, Messrs. Schneur and Vaughn played for the FIXER-UPPER: A Bronx building Omni recently bought and rehabbed. units in the Bronx, Brooklyn, Long Omni on the map. At the time, the capped off the revitalization by giv- Boston Red Sox in Island and as far away as Wyoming. five-building complex with 358 ing the complex a new handle:“The the 1990s, spends The majority of the buildings they units was a haven for drug dealers Plaza.” most of his time on the operations Schneur focuses on the dealmaking. own and manage are Section 8 and addicts, its hallways urine- “Noble Drew Ali, without a side of the business, working with “I’m the eyes,” said Mr. Vaughn, buildings, whose low-income ten- soaked and graffiti-lined and its doubt, was one of the most compli- Omni’s construction, management who got his start in real estate by in- ants rely on federal vouchers to help apartments crumbling. cated projects [we’ve seen],” says and maintenance teams, while Mr. vesting in Manhattan nightclubs with help from Mr.Schneur,then his attorney. “I make sure that everything that needs to get done gets done.” In fact, Omni was his idea. In Ohio, where Mr. Vaughn spent his off-seasons, he met a developer suc- cessfully buying affordable housing using tax credits and decided to try the concept out in New York. “They are smart people,” says Lisa Gomez, executive vice president of affordable housing developer L+M Development Partners. “They get how to do affordable housing and look to the double bottom line [of making money and doing good].” Size doesn’t matter but competition for distressed properties is increasing as the drought in luxury housing deals drags on. Meanwhile, the price of tax credits— a key currency in such deals—has plummeted by nearly a third, forcing Omni to scramble for more state and city subsidies to fill the gap. “We used to be able to get deals done without subsidies,” says Mr. Schneur. Omni’s rapid growth also pres- ents challenges. By year’s end, it ex- pects to have close to 5,000 units. For a firm whose two founders vis- ited their early holdings as many as four times a week, the sheer scale of the portfolio now makes maintaining that degree of oversight difficult—even with the aid of a staff at its midtown headquarters that now numbers about 120. “We can’t cut corners and be complacent,” says Mr. Vaughn. “If we continue to be humble and work hard, we will be fine.” In fact, Mr. Vaughn and his partner are stepping up their act. Prior to the market collapse, Omni had been priced out of Manhattan. Mr. Schneur recalls one deal where Omni bid $20 million for a Manhattan building that went for $30 million. Last month, Omni had better luck, buying its first Manhattan properties—two Section 8 buildings in Harlem with 53 units—for $5.5 million. Now, as a number of big, financially troubled properties, including Lawrence Gluck’s 1,230- unit Riverton in Harlem,make their way through foreclosure, they are weighing a bid. Even Manhattan’s vast middle-income oasis Stuy- vesant Town-Peter Cooper Village looms as a potential target. “Size doesn’t matter,” says Mr. Vaughn. “They fit within our phi- losophy of preserving decent affordable housing.”

12 | Crain’s New York Business | February 15, 2010 20100215-NEWS--0013-NAT-CCI-CN_-- 2/11/2010 5:41 PM Page 1

REAL ESTATE INSIDE Deals Plus The latest transactions and trends P. 16 Largest office leasing deals in Manhattan in 2009 P. 18 Top property sales in NYC in ’09 P. 20

Tenants FUTURE VACANCIES? Brookfield Properties will have to work to keep the scoping World Financial Center landlords’ leased up. fiscal risk Mounting fears of owners too weak to deliver the goods

BY FRAN HAWTHORNE

a certain media company has had enough of the 50-year-old midtown south office building that it has called home for nearly half a decade. Over the past year, “it’s been cold in winter and hot in summer,and the lobby is getting run-down,” says the company’s broker, Scott Panzer, a managing director at Jones Lang LaSalle. “As times get tougher, the landlord cuts back even more.” Fed up, the tenant plans to vacate its 18,000 square feet of space as soon as the lease expires next year. With financial strains taking a toll on more and more landlords—and their properties—tenants are adding an item to their checklists when sizing up potential new offices.

In addition to evaluating loca- buck ennis tion, rent, givebacks and other basics, they are assessing landlords’ fiscal stability. “Tenants look at landlords and say, ‘Is the landlord in danger of defaulting?’ ” says Marcus Big 4 make comeback Rayner, a principal at tenants See LANDLORDS on Page 17 DANGER SIGNS After raising funds, refinancing debts, REITs ready to pounce Debt service, maintenance 1costs exceed the rent roll. and their creditors are under water Jones Lang LaSalle’s capital mar- Significant debts are BY ANDREW MARKS on their newer acquisitions and kets group. “They have more cash 2coming due by 2012. nearing the point of throwing their and credit available now than they Vacancy rates are exception- ess than a year after the four biggest publicly distressed holdings back onto the did at the market peak in the third 3ally high. traded landlords in New York were rocked by the market. quarter of 2007.” The mortgage exceeds the Few are in a better position to Of course, the big four also face a building’s current value. collapse of the credit markets and a drying up of 4 scoop them up than the big four— host of recession-driven problems. The building was purchased in demand for space, they are back. three real estate investment trusts 52006 or 2007. Most important,rents and occupan- LIn recent months, Boston Properties, Brookfield Properties plus Brookfield, which, though not cy levels are under far more pressure Brokers’ commissions are 6being paid late. Corp., SL Green Realty Corp. and Vornado Realty Trust have a REIT,is a public company that fo- than they were back then. In addi- Lobby, common spaces are all raised nine- or 10-digit sums to seize new opportunities, cuses on real estate. tion,while capital is nowhere near as “There are a lot of financially plentiful as it was in 2007, other 7dirty; maintenance is poor. refinanced some of their existing holdings and dialed back The landlord is unresponsive pressed landlords and developers players ranging from famed vulture 8to tenant needs. their financial leverage. As a result, all have seen their share out there with buildings acquired at investor Wilbur Ross to several Eu- Tenants’ spaces are being prices bounce back from their March lows to near or even the top of the market, and I expect ropean funds have all expressed an 9remeasured frequently. above their one-year highs. Still, the prices are far from their the [publicly held] real estate com- interest in picking up good proper- There are surprise recalcu- panies to be major players in the city ties at recession-flattened prices. 10 lations of electric rates. giddy 2007 peaks. as activity in the market picks up this SL Green President Andrew Today, the four stand astride a market in which many rivals year,” says Jay Koster, president of See MAKING on Page 14

February 15, 2010 | Crain’s New York Business | 13 20100215-NEWS--0014-NAT-CCI-CN_-- 2/11/2010 5:43 PM Page 1

REPORT REAL ESTATE

tan-based real estate investment Street Advisors’ Michael Knott. In VORNADO REALTY TRUST bank Savills. “I’m aware of several particular, he praises management Making a comeback New York acquisitions they’re look- for pre-emptively drawing down the Monthly closing stock prices ing to do right now.” company’s entire $1.5 billion line of In the meantime, Brookfield has credit when Lehman was going un- Continued from Page 13 plenty of work to do with its princi- der and using it to buy back some of Mathias, for one, is not overly worried about the competition. pal Manhattan holding, the four- its unsecured debt for as little as 70 “As a group, we’re well-positioned with good liquidity and the cents on the dollar. 731 know-how to make distressed acquisitions pay off,” he asserts. BROOKFIELD PROPERTIES SL Green also cut its remaining Lexington Ave. Whether REITs will acquire distressed properties by buying up debt Monthly closing stock prices management ties with Gramercy with an eye toward ownership (as SL Green has done lately), by mak- Capital and netted $400 million in ing straightforward purchases, or by gobbling up wounded rivals “will a stock offering. Market capitalization $11.6 billion depend on the opportunities that present themselves,” says Dennis No sooner had the company done Total portfolio 297 buildings, Friedrich, chief executive of Brookfield’s U.S. commercial operations. all that than it began pouncing on 83.5 million square feet “But we’re ready.” fresh opportunities. In December, the REIT purchased the mezzanine NYC portfolio 52 buildings, 1 WTC debt of Harry Macklowe’s empty 22 million square feet Trophy focus helps analyst at Green Street Advisors Inc. new tower at 510 Madison Ave. In NYC vacancy rate 4.0% (as of For Boston Properties, the theo- Market capitalization $5.9 billion November,it bought the debt of 100 Sept. 30, 2009) firm weather storm ry has always been that while trophy Church St.,which led to its takeover Total portfolio 110 buildings, NYC average asking rent properties cost more, they also hold of the building last month. SL Not available for boston properties, last year their value better. In 2008, the com- 75 million square feet Green’s Mr.Mathias says he’s still on was all about making ugly choices. pany snapped up one of New York’s NYC portfolio 10 buildings, the hunt for more. Faced with the bankruptcy of two of ultimate trophy towers, the General 18.4 million square feet “We have a stable balance sheet, serve scarce cash or, as Vornado said its largest tenants—Lehman Broth- Motors Building, for $2.9 billion. NYC vacancy rate Midtown, thanks to buying back almost $1 bil- at the time, to “protect against un- ers and General Motors, which left At the time, it seemed like a steal, lion of corporate debt securities and certainties in the capital markets.” 95.9%; downtown, 98.2% (as of two of its midtown buildings with given that Deutsche Bank had just refinancing over $1 billion of mort- “Obviously, that’s the last thing a Sept. 30, 2009) about 550,000 square feet of empty taken the property back from devel- gages,” says Mr. Mathias, referring REIT wants to do, since the cash- space at the height of the recession— oper Harry Macklowe. But since NYC average asking rent Midtown, to deals like last month’s $475 mil- paying dividend is the reason many the company took drastic action. then, market conditions have dete- high $70s; downtown, mid-$50s lion refinancing of 1515 Broadway investors buy their shares,” observes It slashed rents and diluted its riorated significantly. to replace a $625 million debt that Green Street Advisors’ Mr. Knott. shareholders’ stake in the company Undeterred, Mr. Linde calls the was due to mature in November “It sends out a signal of desperation.” by selling $842 million worth of GM Building “the kind of building building, 8 million-square-foot 2010. Desperation, indeed. The com- stock in May,when those shares had that you can lease up even in down World Financial Center.Two of the Savills’ Mr. Baker wonders how pany went into 2009 saddled with a tumbled to levels close to their markets.” largest tenants, Merrill Lynch and mountain of unsecured debt. eight-year lows. One recent deal shows he may be Deloitte, have leases that come up SL GREEN REALTY But the REIT founded by “Selling off 6% of the company right. Banco Itaú of Brazil leased for renewal in three years. Monthly closing stock prices Steven Roth was quick to adjust. It and having to accept lower rents 25,000 square feet at $130 a foot at “That’s three-and-a-half million used the savings from the cash-light than we would like in order to keep the tower. These days, the average square feet of uncertainty for them,” dividends to help build up about our buildings leased up, those were Plaza district rent is $109,according says Bob Alexander,chairman of the $400 million in liquidity.The com- hard things to swallow,” says Doug to CB Richard Ellis Inc. New York tristate region for CB pany also waded into the debt and Linde, the company’s president. Another case in point is 399 Park Richard Ellis. equity markets to raise a total of Distasteful as it was, the medi- Ave., where the implosion of Merrill Lynch, now owned by $1.2 billion, and then quickly used 100 cine seems to have worked. The Lehman Brothers left 437,000 Bank of America, and Deloitte, Church St. half of those proceeds to retire un- Boston-based REIT used some of square feet of vacant space. By last which has hired Cushman & Wake- secured debt. its freshly raised cash to bring its month, all but 50,000 square feet field Inc. to explore other options, With its balance sheet shored up debt down to the point where it had been re-leased. could leave when their leases expire Market capitalization and $1.56 billion in cash on hand, equaled just under 40% of assets— in 2013. $3.56 billion Vornado is once again on the look- the traditional gold standard for of- Brookfield isn’t taking the possi- Total portfolio 60 buildings, out for buying opportunities. fice REIT leverage—from a per- Downtown leader ble defections and the coming com- 30 million square feet “They’re positioned to be a pow- centage in the mid-50s. Then, as faces challenges petition lying down. The company NYC portfolio 29 buildings, erful presence as the market loosens market conditions improved, the is reportedly planning a major ren- 23.2 million square feet up,” says Robert Knakal, chairman when the port authority an- ovation of the 20-year-old complex. of Massey Knakal Realty Services. BOSTON PROPERTIES nounced last month that it wants to NYC vacancy rate 5% David Greenbaum, president of Monthly closing stock prices bring in an investor to help boost NYC average asking rent $55.68 Vornado’s New York office,wouldn’t leasing efforts at the 1,776-foot-tall Biggest victim comment on specific opportunities 1 World Trade Center, one name makes fastest turn Vornado is eyeing, but many out- topped most lists of likely candi- much of a player SL Green will be siders expect the REIT to add to its dates: Toronto-based Brookfield of the big four,none soared high- going forward. 6.5% market share of midtown’s Properties. er in the boom years or fell harder in “They’ve got $600 million in Class A office market over the next “Strategically, it would make the bust than SL Green. cash, but they’re still almost 60% 12 to 18 months. GM Building sense for them to be interested,”says The company’s stock hit the levered,” he says. “It’s going to be “We are an incredibly strong, Robert Silverman, who follows skids as it sank under borrowings hard for them to justify spending well-capitalized real estate compa- Brookfield for UBS Securities. that approached 70% of the value of that capital when they’ve still got a ny with an interest in acquiring Market capitalization $9.3 billion “They already are the dominant its assets. It also suffered big losses lot of work to do on their balance well-located, irreplaceable assets,” Total portfolio 146 buildings, player downtown, with 16% of the at Gramercy Capital, the structured sheet.” says Mr. Greenbaum. 50.5 million square feet downtown Class A market, and I finance business where it retained a By all accounts,Vornado’s acqui- NYC portfolio 8 buildings, expect their focus to remain there.” 15% ownership stake and close Cash dividends sitions strategy includes adding to 8.9 million square feet Brookfield’s Mr. Friedrich ad- management ties following the its New York portfolio of office mits he’s intrigued by the possibili- unit’s 2004 spinoff. The stock price signal rebound properties, mainly in midtown NYC vacancy rate 5% ty. “It is certainly a property we’d plummeted to a low of $8.36 in Manhattan. NYC average asking rent think about,” he says. “We would March 2009, down 94% from its holders of shares of the nation’s Given Vornado’s history of Mid-$60s to mid-$80s like to add to our New York portfo- 2007 peak. largest REIT got confirmation of its snapping up retailers for their real lio, both in downtown and expand- The most aggressive and New rebound last month, when Vornado estate holdings, and the current de- ing into midtown.” York-oriented office REIT, with Realty Trust announced that it is re- pressed state of many retailers, ob- company restocked its war chest by Today, Brookfield has not just 84% of its portfolio locked up in suming its all-cash dividends. servers say that the REIT is likely to selling $700 million worth of bonds the will but the wherewithal. The Manhattan, SL Green was hugely The news follows a year in which focus its search for acquisitions in September. company boasts relatively low lever- exposed to the foundering financial the Manhattan-based REIT’s repu- there. They note that Mr. Roth’s “Our moves last year have put us age of 44%.It also raised $1.3 billion services industry. Its largest tenant tation took some hard hits. 1995 purchase of troubled depart- in the opportunistic mode now,” in August via a big stock offering.In was none other than the belea- In one instance, Vornado can- ment store Alexander’s Inc. ce- says Mr. Linde. the same month, it raised $1 billion guered Citigroup, which alone ac- celed plans to build an office tower mented his reputation as a patient, Many expect the company to do for a fund designed to acquire dis- counted for 13.4% of the REIT’s over the Port Authority Bus Termi- canny investor. what it traditionally does when it tressed real estate. annual revenue, according to a UBS nal on West 42nd Street as vacancy Today the one-square-block site goes shopping. “I expect them to “They have raised a tremendous research report. rates jumped. But the low point of Alexander’s former flagship store stick with the strategy of owning only amount of money and appear ready “But they were very proactive came earlier, in January 2008, when is home to the spectacularly success- the highest-quality, trophy-type as- to spend it,”says Jeffrey Baker,exec- and smart in dealing with their bal- the company began paying its divi- ful Bloomberg Tower at 731 Lex- sets,” says Michael Knott, a REIT utive managing director of Manhat- ance sheet problems,” says Green dends 60% in stock in order to con- ington Ave.

14 | Crain’s New York Business | February 15, 2010 © 2010 Liberty Mutual Group. WE’VE BUILT AN EQUALLY SOLID REPUTATION. SOLID AN EQUALLY BUILT WE’VE IN AN INDUSTRY KNOWN FOR STEEL AND CONCRETE, CONCRETE, AND STEEL FOR KNOWN INDUSTRY IN AN PROPERTY GROUP BENEFITS GROUP WORKERS COMPENSATION COMPENSATION WORKERS COMMERCIAL AUTO AUTO COMMERCIAL LIABILITY understand the complex and dynamic nature of risk. And from wrap-ups for major construction we sector, construction construction major the in for leader wrap-ups established The an from As next And time out. you help start risk. and work of on a sleeves construction nature their project, up our roll experts to at dynamic Liberty and Mutual are ready complex the understand with are committed annual insuranceprojects contractors, we backing you programs for to to tailored solutions for your risk management needs. That’s our policy. For more information, libertymutualgroup.com/construction. or visit or agent broker contact your Project3:fp template.qxd 2/9/10 3:21 PM Page 1 Page PM 3:21 2/9/10 template.qxd Project3:fp 20100215-NEWS--0016-NAT-CCI-CN_-- 2/11/2010 7:12 PM Page 1

REPORT REAL ESTATE VANISHING ACT Deals Plus Old Deutsche Bank Building 130 Liberty St. Media-buying firm says Newmark Knight Frank broker Moshe Sukenik, who represented Macklowe looms going downtown Horizon Media with his colleague Chris Mongeluzo. He notes that 42 in an encouraging sign for the Horizon’s current leases expire at Floors pre-Sept. 11, 2001 large in sales leasing market,Horizon Media Inc. different times, so Trinity offered has inked a deal for 115,000 square temporary space to accommodate feet at 1 Hudson Square. his client’s timetable. he list of 2009’s top 25 property sales (Page 20) Currently, the Manhattan-based Trinity was represented in-house 21 Floors now paints a stark picture of the state of the market. company has its 400 local employees by its director of commercial leas- spread out in ing, Jason Pizer, and Cushman & Not one deal topped the $1 billion mark, while in three midtown Wakefield Inc. brokers Robert 2008, also a lackluster year, there were two.The locations.It will Constable and Andrew Peretz. be consolidat- —theresa agovino 0 largest deal last year weighed in at a lowly $590 Floors by Dec. 31, 2010 million, compared with the $2.8 billion paid for the General ing them in the T new space start- Source: Lower Manhattan Development Corp. Motors Building in the biggest deal of 2008. ing in Septem- Swedish firm stays While the GM Building sale was truly unusual, other ber. The asking glued to Rock Ctr. comparisons are similarly dispiriting. Consider, for example, rent for the 15- Tech biz downloads year deal was as an international company, that the 25th-largest deal in 2008—a $152 million 1 Hudson Square $42 a square Investor Growth Capital liked the to Park Ave. office transaction—would have ranked as the fourth-largest in 2009, foot. recognition and cachet associated according to Real Capital Analytics. Conversely, last year’s “To be able to have all of our with its Rockefeller Center ad- having outgrown its current mid- largest deal would have ranked as No. 6 in 2008. [New York City] employees under dress, which is why it was keen to town office, Informatica Corp. will one roof is certainly something stay there. be moving to Park Avenue. Ironically, the top deals of both years were byproducts we’ve always wanted,” says Bill The company signed a lease for The company, which provides of the implosion of Harry Macklowe’s holdings. In 2008, Koenigsberg, chief executive of the nearly 13,300 square feet at 1 Rocke- data integration software,has signed he returned to lenders seven buildings that he had media strategy, planning and ad- feller Plaza. The company is a divi- a seven-year lease for 13,500 square buying firm. sion of Stockholm-based Investor feet at 125 Park Ave. The asking rent purchased for $7 billion the previous year, and sold off He is excited about moving into AB, a big holding company found- for the space was $55 per square foot. four other buildings, including the GM Building. This a building with large floor plates and ed by the Wallenberg family. Some “Their existing space was ineffi- year’s top deal was the purchase by a partnership of George huge windows, not to mention one of the holding company’s invest- cient, and they are growing,” says Comfort & Sons and DRA Advisors of WorldWide Plaza situated in a vibrant neighborhood ments include AstraZeneca, Erics- Dan Segal of Newmark Knight that has become a hub of media and son, Electrolux and Saab AB. Frank, who represented the tenant. at 825 Eighth Ave., one of the buildings Mr. Macklowe had creative firms. The asking rent for the 10-year Informatica currently occupies 9,000 handed back. “I think the location brings an deal was in the lows $70s a square square feet at 500 Fifth Ave. It will The dollar value of commercial real estate sales in New energy to our people that you don’t foot. Investor move into its new space on March 1. York City as a whole plummeted to $6.3 billion last year, down find in a stale corporate office in Growth Capital In addition to needing more midtown,” says Mr. Koenigsberg. is slated to move space, the tenant wanted to remain 90% from its peak in 2007, according to Massey Knakal Realty The building is owned by Trini- from 630 Fifth in a Class A building and was com- Services. ty Real Estate, and the landlord’s Ave. in May. fortable with its new landlord, —theresa agovino flexibility helped get the deal done, “Staying in Shorenstein Co., according to Mr. Rockefeller Cen- Segal. Informatica is a tenant of ter was impor- Shorenstein in Chicago. tant to them,” Newmark Knight Frank’s Joshua says Jeffrey Peck, Gosin represented the landlord. a broker at Stud- Based in Redwood City, Calif., ley, who repre- Informatica has more than 3,900 sented the firm customers worldwide. with his col- —amanda fung league Daniel Horowitz. He 1 Rockefeller Plaza adds that land- Irish bar thinks lord Tishman Speyer is building out out of the box the space to the fund’s specifications. Tishman Speyer represented itself in for the owners of an Irish bar the transaction. called The Horse Box, the key thing —theresa agovino about finding a spot in the East Vil- lage wasn’t the location as much as the ability to buy a liquor license to Sublessor upgrades go with it. A moratorium is in effect to direct lease on issuing new liquor licenses in the neighborhood. intralinks inc. will convert its The owners got what they needed COLLIERS ABR WILL BE REAL MARKET KNOWLEDGE. current sublease at 150 E. 42nd St. to at 218 Avenue A and signed a 10-year a 10-year direct lease, effective Au- lease for 1,100 square feet. Owner CASSIDY TURLEY. REAL CONNECTIONS. gust 2011. David Pettebone also plunked down “They were very happy with the $20,000 for a liquor license transfer REAL PASSION. landlord and the building, and were from the space’s previous tenant,a bar able to save money by renovating called Cricket & Eddie. REAL RESULTS. their floors, as opposed to relocat- “If there isn’t a transfer of a license, ing,” says Adam Foster, senior vice and you’re a bar or a restaurant,you’re president of CB Richard Ellis Inc., not going to have one,” says Annie We are a national team of dedicated commercial real estate professionals with a who represented the information- Meyding, the Walker Malloy & Co. history of 100 years of successful client relationships which include $15 billion in exchange firm along with his col- broker who represented both The annual transactions, 420 million square feet of managed space and 22,000 Corporate league Matthew Jacobs. Horse Box and landlord 218 Avenue Services locations. Our world-class expertise enables us to deliver integrated, tailored solutions around the globe. Our knowledge of local markets and deep industry IntraLinks has been in its current A in negotiations. She explains that connections allow us to achieve superior results. We are advocates for our clients home for four years. because there are so many bars in the and passionate about their long-term success. We are Cassidy Turley. The asking rent for the 43,300- neighborhood, Community Board 3 To learn more, visit www.cassidyturley.com or call 212.758.0800. square-foot space was in the mid- is holding back new liquor licenses. $50s per square foot. The asking rent for the deal, Scott Gottlieb and Rocco which includes an 1,100-square- CAPITAL MARKETS CORPORATE SERVICES LEASING & TENANT REPRESENTATION PROJECT & DEVELOPMENT SERVICES PROPERTY MANAGEMENT Laginestra, also of CBRE, repre- foot storage basement, was nearly © 2010 Cassidy Turley. sented landlord Hiro. $131 a square foot. —emily laermer —adrianne pasquarelli

16 | Crain’s New York Business | February 15, 2010 20100215-NEWS--0017-NAT-CCI-CN_-- 2/11/2010 5:43 PM Page 1

IMMEDIATE AVAILABILITY 61 BROADWAY REPORT REAL ESTATE PRE-BUILTS FROM 1,000 TO 23,750 RSF

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Some tenants are demanding the FLEXIBLE LEASE TERMS inclusion of “nondisturbance clauses” FROM 1 TO 10 YEARS Landlords at risk in their leases so that if their land- MULTIPLE FULL FLOORS CAN lords do go bankrupt,properties’new BE MADE AVAILABLE Continued from Page 13 cleaning standards and how quickly owners can’t touch any escrow mon- brokerage CresaPartners. they respond to tenant complaints. ey,raise rents or evict the businesses. · Solid, steady ownership · Unparalleled tenant services To date, few owners have de- In many cases, tenants are asking Mr. Goldstein of Studley even · Efficient floorplates faulted on their loans. But more are for various financial guarantees—a managed to get a rare “right to cure” · Distinctive classic Art Deco struggling to keep up with payments powerful sign of just how nervous clause in a lease signed in the fall for attended lobby · Beautiful views on buildings that in many cases are tenants have become. a Class A space in midtown of more · Exceptional access to all worth far less now than when they “Some tenants are saying, ‘We than 50,000 square feet.The arrange- downtown transportation were purchased just a few years ago. want our installation [build-out] al- ment permits the tenant to deduct · Two blocks from Wall Street “Maybe four or five years ago, lowance put in escrow,’ ” notes An- an unlimited cost-for-work-done al- · Entrances on Trinity & B’way there were only one or two landlords thony Malkin,president of landlord lowance from its rent if the landlord For additional info, please contact: you’d have to watch out for,” says Malkin Holdings. fails to pay for agreed-upon improve- Ramona Huegel or David M. Israni Ted Rotante, a senior managing di- That’s fine with Mr.Malkin.His ments and the tenant has to step in. 212.609.3700 rector at FirstService Williams. firm, which owns about 10 million Mr.Goldstein adds,“We have no “Now there’s maybe 10.” square feet of commercial real estate doubt the landlord will perform,but “We're earning the right to be your next landlord” GREAT SERVICE To protect themselves, tenants in the New York area, has an excel- part of our diligence made us aware IS ALWAYS are putting landlords under the mi- lent track record and low leverage. of the need to have this in.” GOOD BUSINESS WWW.BSDRE.COM croscope. For example, on behalf of its clients, CresaPartners routinely analyzes a landlord’s debt load through databases such as Trepp’s CMBS Deal Library, which com- piles information on commercial mortgage-backed securities. The brokerage recently ran the numbers on a Class A midtown COMMAND tower and found that to cover its debt service and operating costs,the owner needed $50 per square foot— COMPLEX $10 above the market rate. Cre- saPartners steered its client to a less COMPOSED leveraged property. David Goldstein, an executive COACH vice president at Studley, looks for a different red flag: “Any time a landlord has a note coming due in the COGNIZANT near future on a significant amount of debt, I have to be convinced that COLLABORATIVE the landlord has a solid plan to ap- propriately refinance,” he says. Buildings on Mr.Rotante’s watch CONTEMPORARY list include those “bought at the top of the market” and those with va- COUNSEL cancy rates of more than 25%. A number of brokers are going COZEN beyond the financials, finding out COURAGE how landlords are performing for their current tenants, checking on CONFIDENCE O’CONNOR POWER PLAYS CELEBRATES WITH THE MANHATTAN office COLLEAGUE vacancy rate at nearly 11%, according to the Real Estate Richard Fama, Trial Lawyer Board of New York, and average COMMUNICATOR rents at just $40.12 in third- quarter 2009, tenants know We know victory in the courtroom takes more than just where the power lies these days. experience or strategic planning. It takes courage. But when dealing with relatively stable landlords, they aren’t Our team of trial lawyers has an uncommonly consistent record of wasting their time seeking financial guarantees. success in all facets of litigation. Whether it’s our victorious summary Tenants are asking for perks judgments or disputes settled, favorable verdicts or appeals won, such as early-termination clauses we have the skill it takes to prevail. that allow them to break leases with low penalties, free use of For worldwide offices, visit us at cozen.com. the freight elevator when they move in, or lower charges for overtime use of the HVAC system. Abby M. Wenzel, Office Managing Partner Some brokers, having been 250 Park Avenue burned by landlords who are New York, New York 10177 dragging their feet or defaulting 212.883.4997 | [email protected] on paying commissions, are trying Geoffrey D. Ferrer, Office Managing Partner to get their entire commission 16th Floor, 45 Broadway immediately or are seeking New York, New York 10006 penalties for late payment. 212.908.1201 | [email protected] “What is done will vary depending on who the tenant is, 550 Lawyers | 24 Offices and who the landlord is, and where the building is,” says Ted The confidence to proceed. Rotante of FirstService Williams. ®

REPORT REAL ESTATE CoStar’s Top Manhattan Office Leasing Deals Biggest transactions in 2009, ranked by square footage

Address Square feet Tenant Tenant representative Landlord/sublandlord Landlord/sublandlord representative Submarket

1 1285 Sixth Ave.1 543,969 Paul Weiss Rifkind Wharton & Garrison Newmark Knight Frank J.P.Morgan Securities/ Jones Lang LaSalle Columbus Circle Lend Lease Real Estate Investments 2 63 Madison Ave.1 414,751 New York Life Insurance Co. Cushman & Wakefield Inc. George Comfort & Sons Inc./ George Comfort & Sons Inc. Gramercy Park Loeb Partners Realty 3 1230 Sixth Ave.1 292,391 Simon & Schuster Inc. CBRE Tishman Speyer Tishman Speyer Plaza District 4 40 Worth St. 265,083 Gap Inc. CBRE Newmark Holdings Newmark Knight Frank TriBeCa 5 200 Park Ave.2 261,847 Gibson Dunn & Crutcher CBRE Tishman Speyer Tishman Speyer Grand Central 6 51 W. 52nd St.1 242,464 Wachtell Lipton Rosen & Katz Studley CBS Broadcasting Inc. CBRE Plaza District 7 650 Madison Ave.2 241,911 Polo Ralph Lauren Corp. Studley Ashkenazy Acquisition Corp. Cushman & Wakefield Inc. Plaza District 8 555 W. 57th St.1 227,782 BMW of Manhattan Inc. CBRE SL Green Realty Corp. SL Green Realty Corp. Columbus Circle 9 180 Maiden Lane1 223,424 Stroock & Stroock & Lavan CBRE The Moinian Group The Moinian Group Financial District 10 51 W. 52nd St. 213,231 Orrick Herrington & Sutcliffe Newmark Knight Frank CBS Broadcasting Inc. Jones Lang LaSalle Plaza District 11 25 Broadway 203,770 Claremont Preparatory School Newmark Knight Frank ACTA Realty CBRE World Trade Center 12 1633 Broadway1 202,495 Showtime CBRE Paramount Group Inc. Paramount Group Inc. Columbus Circle 13 1372 Broadway3 200,821 Ross Stores Inc. Studley 1372 Broadway LLC 1372 Broadway LLC Penn Plaza/Garment 14 55 Water St.1 200,392 Depository Trust & Clearing Corp. Cushman & Wakefield Inc. New Water Street Corp. CBRE Financial District 15 1 World Trade Center 190,810 Beijing Vantone Real Estate Co. Jones Lang LaSalle The Port Authority of NY & NJ The Port Authority of NY & NJ World Trade Center 16 731 Lexington Ave. 176,000 Bloomberg LP CBRE Vornado Realty Trust Vornado Office Management Inc. Plaza District 17 1251 Sixth Ave.1 169,200 Mizuho Corporate Bank Ltd. CBRE Mitsui Fudosan America Inc. Newmark Knight Frank Times Square 18 1271 Sixth Ave.4 165,794 Lehman Brothers Holdings Inc. CBRE Time Inc. Studley Columbus Circle 19 909 Third Ave.2 154,975 Forest Laboratories Inc. Newmark Knight Frank Vornado Realty Trust Vornado Office Management Inc. Plaza District 20 345 Park Ave.2 154,735 Loeb & Loeb CBRE Rudin Management Co. Rudin Management Co. Plaza District 21 645 Fifth Ave.1 153,405 National Basketball Association Newmark Knight Frank Olympic Tower Associates FirstService Williams Plaza District 22 1333 Broadway 147,830 LF USA Inc. Cushman & Wakefield Inc. W&H Properties Inc. Newmark Knight Frank Penn Plaza/Garment 23 399 Park Ave.2 143,254 C.V. Starr & Co. Cushman & Wakefield Inc. Boston Properties Inc. CBRE Plaza District 24 395 Hudson St. 137,119 City University of New York Cushman & Wakefield Inc. New York City District Council Cushman & Wakefield Inc. Hudson Square of Carpenters Pension Fund 25 2 World Financial Center 135,390 Sonnenschein Nath & Rosenthal Direct deal Brookfield Properties Management Brookfield Properties Management World Trade Center 26 200 Park Ave.1 125,771 CBRE CBRE Tishman Speyer Tishman Speyer Grand Central 27 1271 Sixth Ave.4 122,260 Hachette Filipacchi Media U.S. Inc. Newmark Knight Frank Time Inc. Studley Columbus Circle 28 75 Ninth Ave.1 119,670 MLB Advanced Media Newmark Knight Frank Jamestown Newmark Knight Frank Chelsea 29 730 Third Ave. 119,399 United Nations FirstService Williams TIAA-CREF CBRE Grand Central 30 1166 Sixth Ave.4 117,225 D.E. Shaw CBRE Edward J. Minskoff Equities Cushman & Wakefield Inc. Times Square 31 225-233 Park Ave. South 2 116,943 STV Inc. Cushman & Wakefield Inc. Orda Management Corp. CBRE Gramercy Park 32 200 Varick St. 114,865 Omnicom Lee Feld Real Estate Newmark Holdings Newmark Knight Frank Hudson Square 33 767 Fifth Ave.1 114,300 General Motors Corp. Jones Lang LaSalle 767 Fifth Partners Boston Properties Inc. Plaza District 34 717 Fifth Ave.1 113,498 Merrill Lynch Jones Lang LaSalle Equity Office Properties CBRE Plaza District 35 1372 Broadway5 112,490 LF USA Inc. Cushman & Wakefield Inc. BLDG Management 1372 Broadway LLC Penn Plaza/Garment 36 32 Old Slip1 112,270 Daiwa Securities America Inc. Cushman & Wakefield Inc. Beacon Capital Partners Inc. CBRE Financial District 37 113-133 W. 18th St.1 112,000 Donovan Data Systems FirstService Williams Wasserstein Enterprises Newmark Knight Frank Chelsea 37 521 W. 57th St.2 112,000 Genzyme Corp. Studley Himmel + Meringoff Properties Meringoff Properties Inc. Columbus Circle 39 3 World Financial Center 109,940 Lord Bissell & Brook Studley/Transwestern Brookfield Properties Management Brookfield Properties Management World Trade Center 40 40 Wall St.1 108,241 Country-Wide Insurance Co. Newmark Knight Frank The Trump Organization CBRE Financial District 41 1095 Sixth Ave. 107,022 Standard Chartered Bank Jones Lang LaSalle/ The Blackstone Group CBRE Penn Plaza/Garment Cushman & Wakefield 42 601 Lexington Ave.1 105,000 Citadel Investment Group CBRE Jones Lang LaSalle Boston Properties Inc. Plaza District 42 300 Park Ave.2 105,000 Greenhill & Co. CBRE Tishman Speyer Tishman Speyer Plaza District 44 220 E. 42nd St.1 104,243 WPIX Inc. Cushman & Wakefield Inc. SL Green Realty Corp. SL Green Realty Corp. Grand Central 45 350 Fifth Ave. 102,690 FDIC Grubb & Ellis Peter L. Malkin CBRE Penn Plaza/Garment 46 77 Water St.4 101,144 AT&T Cushman & Wakefield Inc. 450 Seventh Ave. Associates Cushman & Wakefield Inc. Financial District 47 1095 Sixth Ave. 99,552 Instinet Corp. Newmark Knight Frank The Blackstone Group CBRE Penn Plaza/Garment 48 1166 Sixth Ave.1 98,899 Invesco Real Estate Jones Lang LaSalle Edward J. Minskoff Equities/ Cushman & Wakefield Inc. Times Square Marsh & McLennan Cos. 49 2 Park Ave. 98,721 Bonnier Corp. CBRE Morgan Stanley Real Estate Advisor L&L Holding Co. Murray Hill 50 399 Park Ave. 96,778 Moelis & Co. Cushman & Wakefield Inc. Boston Properties Inc. CBRE Plaza District This list includes leases with terms of more than two years. Deals are for new leases unless otherwise noted. The New York Times Co.’s deal for 749,445 square feet at 620 Eighth Ave., which was primarily a financing transaction, is not included in this ranking. In case of tied figures for square feet, deals are listed alphabetically by tenant under the same ranking number. 1-Renewal. 2-Expansion and renewal. 3-Expansion. 4-Sublease. 5-Combination of direct and sublease space. CoStar Group Inc., a provider of information services to the United States and the United Kingdom commercial real estate industries, offers customers access via the Internet to the most comprehensive verified database of commercial real estate information in the U.S. and the U.K. For more information, visit www.costar.com or call (877) 7-COSTAR.

18 | Crain’s New York Business | February 15, 2010 CN013493 2/9/10 12:24 PM Page 1 20100215-NEWS--0020-NAT-CCI-CN_-- 2/11/2010 7:13 PM Page 1

REPORT REAL ESTATE Real Capital Analytics’ Top Property Sales Biggest commercial transactions in NYC in 2009, ranked by price Sq. ft. or Address/ # of units/ property type/ Sale price price per Close submarket (in millions) sq. ft. or unit date Buyer Seller Seller’s representative TOP FOUR SALES 825 Eighth Ave. (WorldWide Plaza) $590.3 1,600,000 7/22 George Comfort & Sons / Macklowe Properties Eastdil Secured 1 Office $369 DRA Advisors (Deutsche Bank) Midtown West 1334 York Ave. (Sotheby’s headquarters)1 $370. 0 493,000 2/6 Sotheby’s/1334 York LLC Landesbank Sachsen/ Jones Lang LaSalle 2 Office $751 RFR Holding Upper East Side 1540 Broadway (Bertelsmann Building) $355.0 906,287 3/5 CB Richard Ellis Investors Macklowe Properties Eastdil Secured 3 Office condo $392 (Deutsche Bank) Midtown West 234 W. 48th St. (Best Western President)2 $134.9 334 1/31 Investcorp Real Estate Hampshire Hotels Group Cushman & Wakefield 4 Hotel $403,892 Midtown West 63 W. 35th St. (Hilton Garden Inn New York) $123.1 298 3/23 RLJ Development Brack Capital Real Estate n/a 5 Hotel $412,938 Midtown West LIST RANK 1 2 E. 55th St. (St. Regis New York) $117.0 25,000 11/4 Crown Acquisitions / Starwood Hotels & Resorts CB Richard Ellis 6 Retail condo $4,680 Goldman Properties / Worldwide ADDRESS 825 Eighth Ave. Midtown East The Feil Organization PRICE PER SQ. FT. $369 70 Pine St. $113.0 1,100,000 8/26 Kumho Investment Bank / American International Group CB Richard Ellis 7 Office $103 YoungWoo & Associates Downtown 330 W. 40th St. (Fairfield Inn New York) $99.9 244 2/12 Gehr Development The Lam Group n/a 8 Hotel $409,251 Midtown West 1025 Boardwalk West $95.6 300,564 12/18 City of New York Thor Equities n/a 9 Development site $318 Coney Island, Brooklyn 6 York St. (Hilton Garden Inn Tribeca)3 $67.0 151 6/30 Hersha Hospitality Trust York Street LLC n/a 10 Hotel $443,709 Downtown 31 W. 27th St. $45.7 108,594 10/22 Soho Properties The Witkoff Group n/a 11 Office $421 Midtown West 488 Seventh Ave. $45.3 104 2/5 Torkian International Group Swift Park n/a 12 Apartments $435,577 LIST RANK 2 Midtown West ADDRESS 1334 York Ave. 30-34 W. 47th St. $42.5 55,138 5/14 Jemsa Realty Extell Development Co. n/a PRICE PER SQ. FT. $751 13 Office $771 Midtown West 1212 Fifth Ave. $42.0 76 9/9 The Durst Organization / Mount Sinai Hospital Newmark Knight Frank 14 Apartments $552,632 Sidney Fetner Associates Upper Manhattan 10 W. 74th St. $38.0 79 10/29 Elk Investors BlackRock CB Richard Ellis 15 Apartments $481,013 Upper West Side 72 Wall St. $37.0 325,000 8/26 Kumho Investment Bank / American International Group CB Richard Ellis 16 Office $114 YoungWoo & Associates Downtown 74-17 Grand Ave. (Shops at Grand Avenue) $33.5 100,000 4/16 AEW Capital Management Forest City Ratner Cos. n/a 17 Retail $335 Flushing, Queens East 35th Street and First Avenue $33.3 23,5814 12/23 New York City Solow Realty n/a 18 Development site $1,410 School Construction Authority & Development Co. Midtown East LIST RANK 3 30 W. 70th St. $29.8 38 9/18 Fine Times Inc. Ruskin Moscou Faltischek Rosen Group 19 Apartments $782,895 ADDRESS 1540 Broadway Upper West Side PRICE PER SQ. FT. $392 63 W. 38th St. $29.5 120,876 10/27 Aini Assets Savanna Partners FirstService Williams 20 Office $244 Midtown West 9-11 W. 54th St. $29.0 24,449 11/12 JD Carlisle Development Corp. Bank of America n/a 21 Office $1,186 Midtown West 122 E. 58th St. $28.5 23,712 3/13 Mosdot Shuva Israel Sam Nussbaum Massey Knakal 22 Office $1,202 Realty Services Midtown East 525 Third Ave. $28.3 86 11/23 35 East Associates 201 LLC Eastern Consolidated 23 Apartments $328,488 Midtown East 81-10 135th St. $28.0 276 10/7 Musso Properties Ceebraid-Signal Corp. Massey Knakal 24 Apartments $101,449 Realty Services Jamaica, Queens 2010 Lexington Ave. (Met Paca I & II) $26.9 229 12/15 Pacific Housing Advisors Security Properties Inc. Massey Knakal 25 Apartments $117,467 Realty Services LIST RANK 4 Upper Manhattan ADDRESS 234 W. 48th St. n/a Not available. 1-Exercised purchase option. 2-Leasehold. A 95% interest was traded; price reflects 100% valuation. 3-A 51% interest was traded; price reflects 100% valuation. 4-Land square footage. Real Capital Analytics Inc. is an independ- PRICE PER UNIT $403,892 ent research firm focused on capital investment markets for commercial real estate. RCA offers comprehensive information on industry activity. As well as collecting transactional details for property sales and financings, it interprets the data, including capitalization rates, market trends, pricing and sales volume. The firm publishes a series of Capital Trends reports and offers an online service providing real-time global transactional market information. Visit www.rcanalytics.com.

20 | Crain’s New York Business | February 15, 2010 nb07p21-22cl.qxp 2/12/10 3:30 PM Page 21

PUBLIC & LEGAL NOTICES ADVISORY SERVICES DOUBLE YOUR INVESTMENT ADVISORY BUSINESS IN YOUR OWN MIDTOWN OFFICE. PUBLIC AUCTION What you want... Who we are... NOTICE OF PUBLIC SALE UNDER THE UNIFORM COMMERCIAL CODE • A great work location/environment KBK Wealth Management is a full-service NOTICE IS HEREBY GIVEN that, by virtue of continuing defaults by Juniper Content • Your own book and business independent firm. Our three partners each Corporation, Firestone Communications, Inc. and Sorpresa! Rights LLC (“Companies”) under have 25 years of professional experience. • Higher payout + profit-sharing certain Notes and Security Agreement, with Juniper Venture, LLC (‘Secured Party”), Secured • Party will conduct a Public Sale and Auction of the assets described below (“Collateral”), to the Full support staff & services What we need... highest qualified bidder as follows: • Unlimited practice growth potential • Established book and track record Time/Place of Sale. This public auction shall take place at 10:00 A.M. on Wednesday, March 3, • Access to planning & tax services • New energy, ideas and vision 2010, at the offices of Zeisler & Zeisler, P.C., 558 Clinton Avenue, Bridgeport, Connecticut 06605. • Top b/d platform + full product menu • Desire to profit from all that we know Description of Collateral. The Collateral to be sold consists of all right, title and interest of the • Early equity ownership potential Companies in, to and under that certain Asset Purchase Agreement dated July 16, 2009 to which If what you want and what we need are • certain of the Companies are a party including the right to receipt of payment of the outstanding Paid medical insurance benefits aligned, call Alan today at (212) 944-8501. balance of the purchase price set forth therein and to twenty percent of the membership units in New Sorpresa, LLC. A copy of the Asset Purchase Agreement is available by contacting the law KBK Wealth Management/28 West 44th St/NY, NY 10036/KBKWealthManagement.com Securities and Advisory Services offered through Commonwealth Financial Network, Member FINRA/SIPC, Notice of Qualification of The Fifth firm listed below. a Registered Investment Adviser. KBK Wealth Management, LLC and Commonwealth are unaffiliated entities. Line, LLC. Authority filed with Secy. Conditions of Sale. In order to qualify to bid, each prospective bidder must deposit $100,000 in of State of NY (SSNY) on 11/25/09. certified funds with the law firm set forth below, prior to the commencement of the auction. The Office location: NY County. LLC successful bidder must deliver the balance of the accepted bid, by certified or cashier’s check, GLASS REPAIR formed in Missouri (MO) on 7/10/06. within 72 hours of completion of the auction or its deposit will be forfeited and the Collateral SSNY designated as agent of LLC resubmitted for public sale. The Secured Party reserves the right to bid for and purchase (without upon whom process against it may deposit) the Collateral by credit bid up to the amount of its claim against the Companies and to be served. SSNY shall mail process adjourn, delay or terminate the public sale without further notice except upon the date of sale. VANDALIZED to principal office address of LLC: THE SALE OF THE COLLATERAL SHALL BE “AS IS” AND “WHERE IS” WITHOUT 116 W. 121st St., Ste. 2, NY, NY EXPRESSED OR IMPLIED REPRESENTATIONS AND WARRANTIES OF ANY KIND OR GLASS? 10027. Arts. of Org. filed with MO NATURE AND ALL SUCH WARRANTIES ARE EXPRESSLY DISCLAIMED. Secy. of State, 600 W. Main St., Rm. Zeisler & Zeisler, P.C. (Attn: Coleen Hurlie-Dunn, Esq.) 322, Jefferson City, MO 65101. Attorney for the Secured Party Purpose: any lawful activity. 558 Clinton Avenue Bridgeport, Connecticut 06605 Notice of Qualification of 203-368-4234 [email protected] Tiedemann/Pentagram Equity Fund, Do Not L.P., Authority filed Sec’y of State Notice of Formation of G3 6NY LLC. Notice of Qualification of Little Lotta (SSNY) 12/8/09. Office loc.: NY Arts. of Org. filed with Secy. of State Music, LLC. Authority filed with NY Replace County. LP org. in DE 12/7/09. SSNY of NY (SSNY) on 11/23/09. Office Dept. of State on 1/8/10. Office loca- desig. as agent of LP upon whom location: NY County. Princ. office of tion: NY County. Princ. bus. addr.: 85 process against it may be served. LLC: 166 Elizabeth St., NY, NY 10012. 5th Ave., 6th Fl., NY, NY 10003. LLC SSNY shall mail copy of proc. to SSNY designated as agent of LLC formed in DE on 12/29/09. NY Sec. Attn: Michael Tiedemann, 535 upon whom process against it may of State designated as agent of LLC Madison Ave., 36th Fl., NY, NY be served. SSNY shall mail process upon whom process against it may 10022. DE office addr.: CSC, 2711 to Chet H. Olsen, 1880 Century Park be served and shall mail process to: Restore! Centerville Rd., Wilmington, DE East, Ste. 618, Los Angeles, CA c/o CT Corporation System, 111 8th 19808. Cert. of LP on file: SSDE, 90067. Purpose: Any lawful activity. Ave., NY, NY 10011, regd. agent Townsend Bldg., Dover, DE 19901. upon whom process may be served. Name/addr. of each gen. ptr. avail. at DE addr. of LLC: 1209 Orange St., SSNY. Purp.: any lawful activities. Notice of Formation of Global Ventures, LLC, Art. of Org. filed Sec’y Wilmington, DE 19801. Arts. of Org. of State (SSNY) 1/6/00. Office loca- filed with DE Sec. of State, 401 tion: NY County. SSNY designated Federal St., Dover, DE 19901. TAX PREPARATION as agent of LLC upon whom process Purpose: all lawful purposes. REAL ESTATE against it may be served. SSNY shall mail copy of process to 503 Notice of Formation of Melco Direct MAXIMIZE YOUR TAX RETURN Broadway, PH, NY, NY 10012. LLC filed with Sec. of State NY Former “Big 4” CPA/MBA focusing on Small COMMERCIAL Purpose: any lawful activities. (SSNY) on 11/20/09. Office Location: Businesses & Individual Tax preparation. NY County. SSNY designated as Also a Quickbooks Pro Advisor who can help NOTICE OF FORMATION of agent of LLC upon whom process make sure your business is maximizing Manhattan Internal Medicine, PLLC against it may be served. SSNY shall profits & minimizing taxes. Reasonable rates. Art. of Org filed Sec’y of State mail process to: Melco Direct LLC, (212) 868-2511 - [email protected] (SSNY) 1/28/10. Office location: Attn: Jeff Meltzer, 70 W 36th St., Suite New York County. SSNY designated 1000, NY, NY 10018. Purpose: Any as agent of LLC upon whom process lawful purpose. Notice of Qualification of INLE CAPI- against it may be served. SSNY TELECOMMUNICATIONS TAL PARTNERS GP, LLC. Authority shall mail copy of process to 108 NOTICE OF FORMATION of ECE filed with Secy. of State of NY (SSNY) East 96th St, New York, NY 10128. Policy Works, LLC Art. of Org filed on 02/08/10. Office location: NY Purpose: practice of medicine. Sec’y of State (SSNY) 1/5/10. Office COMMERCIAL County. LLC formed in Delaware (DE) location: New York County. SSNY BROOKLYN on 02/01/10. Princ. office of LLC: NOTICE OF FORMATION of Ripe designated as agent of LLC upon Attn: Eran Penini, 85 4th Ave., #4KK, Catering LLC. Arts. Of Org. Filed with whom process against it may be 7th Ave. & 64th St.-Brooklyn served. SSNY shall mail copy of 7th Ave. & 64th St.-Brooklyn NY, NY 10003. SSNY designated as Secy. Of State of NY (SSNY) on Subway & Bus on the block 9/22/08. Office location: New York process to c/o Hofheimer Gartlir & Subway & Bus on the block agent of LLC upon whom process Parking available against it may be served. SSNY shall County. SSNY designated as agent Gross LLP, 530 Fifth Avenue, New mail process to the LLC at the addr. of LLC upon whom process against York, N.Y. 10036. Purpose: any law- of its princ. office. DE addr. of LLC: it may be served. SSNYshall mail ful activities. c/o Corporation Service Co., 2711 process to principal business loca- Centerville Rd., Ste. 400, Wilmington, tion 210 E 36th St., Apt 12A, NY, NY Notice of Qualification of LEE EQUITY 17,500 SF Office Avail Feb 2010 DE 19808. Arts. of Org. filed with 10016. Purpose: Any lawful activity. STRATEGIC PARTNERS FUND RX • Move-in Condition • 24/7 Access Also new construction avail. Spring 2011 Secy. of State of DE, 401 Federal St., AIV, L.P. Authority filed with Secy. of Ste. 4, Dover, DE 19901. Purpose: 50K sf offices, 4th & 5th Flr. Notice of Qualification of Arlon Food State of NY (SSNY) on 12/03/09. Call Andy Kohen Any lawful activity. and Agriculture Partners LP. Authority Office location: NY County. LP formed Ph:718-258-2782 Cell:718-974-6044 filed with NY Dept. of State on in Delaware (DE) on 08/07/08. Princ. Notice of Qualification of MPN 1/15/10. Office location: NY County. office of LP: 650 Madison Ave., NY, Capital Management, LLC. Authority Princ. bus. addr.: c/o Continental NY 10022. SSNY designated as agent OFFICE SPACE filed with Secy. of State of NY Grain Company, 277 Park Ave., NY, of LP upon whom process against it (SSNY) on 1/28/10. Office location: NY 10172. LP formed in DE on may be served. SSNY shall mail PARK /54TH - large office in NY County. LLC formed in Delaware 12/10/09. NY Sec. of State designat- process to the Partnership at the tasteful law suite. 1-2 workstations (DE) on 4/10/07. SSNY designated ed as agent of LP upon whom princ. office of the LP. The regd. agent as agent of LLC upon whom process process against it may be served of the company upon whom and at available. All amenities. against it may be served. SSNY and shall mail process to: c/o CT which process against the company 888.748.8748 ext. 109 shall mail process to: Michael P. Corporation System, 111 8th Ave., can be served is Corporation Service Neely, 527 Third Ave., Ste. 200, NY, NY, NY 10011, regd. agent upon Co. (CSC), 80 State St., Albany, NY NY 10016, also the address of the whom process may be served. DE 12207-2543. Name and addr. of each principal office. Address to be main- addr. of LP: c/o The Corporation general partner are available from tained in DE: c/o National Registered Trust Co., 1209 Orange St., SSNY. DE addr. of LP: c/o CSC, 2711 Agents, Inc., 160 Greentree Dr., Ste. Wilmington, DE 19801. Name/addr. Centerville Rd., Wilmington, DE Call John Gallagher @ 212-210-0189 101, Dover, DE 19904. Arts of Org. of genl. ptr. available from NY Sec. of 19808. Arts. of Org. filed with DE filed with DE Secy. Of State, 401 State. Cert. of LP filed with DE Sec. Secy. of State, State of DE, Div. of Federal St., Ste. 4, Dover, DE 19901. of State, 401 Federal St., Dover, DE Corps., 401 Federal St., Dover, DE for classified advertising opportunities Purpose: any lawful activities. 19901. Purpose: any lawful activity. 19901. Purpose: Any lawful activity.

February 15, 2010 | Crain’s New York Business | 21 nb07p21-22cl.qxp 2/12/10 3:28 PM Page 22

PUBLIC & LEGAL NOTICES

Name of Foreign LP: WestRiver RE Notice of Registration of M & C Notice of Qualification of MORVEN GP, Finance Fund (MM), LP. App. For Saatchi Sport & Entertainment LLP. LLC. Authority filed with Secy. of State Authority filed with Sec. of State Ctf of Reg. filed with Secy. of State of of NY (SSNY) on 01/05/10. Office 1/21/2010. LP formed in DE on NY (SSNY) on 1/7/2010. Office loca- location: NY County. LLC formed in December 16, 2009. NY State Office tion: NY County. LLP formed in Delaware (DE) on 12/23/09. Princ. loc.: NY County. Sec. of State of NY Delaware (DE) on 12/17/09. SSNY office of LLC: Attn: Robert Heine, 2 designated as agent of LP upon designated as agent of LLC upon Beekman Pl., #13A, NY, NY 10022. whom process may be served. Sec. whom process against it may be SSNY designated as agent of LLC of State of NY shall mail copy of served. SSNY shall mail process to: upon whom process against it may be process to: c/o WestRiver Capital, Davis & Gilbert LLP, 1740 Broadway, served. SSNY shall mail process to the LLC, 450 Park Avenue, Suite 1203, NY, NY 10019. Address of LLP in DE: LLC at the addr. of its princ. office. DE New York, New York 10022. Address 160 Greentree Dr., Ste. 101, Dover, addr. of LLC: c/o Corporation Service of LP in State of formation is: c/o DE 19904. Cft of Reg.. filed with DE Co., 2711 Centerville Rd., Ste. 400, Capitol Services, Inc., 615 South Secy. Of State, 401 Federal St., Ste. Wilmington, DE 19808. Arts. of Org. DuPont Highway, Dover, Delaware 4, Dover, DE 19901. Purpose: Notice of Formation of Assiusa, LLC, filed with Secy. of State of DE, 401 19901. Name and address of author- Practice Law and any lawful activities. Art. of Org. filed Sec’y of State Federal St., Ste. 4, Dover, DE 19901. ized officer in DE where a copy of LP’s (SSNY) 12/7/09. Office location: NY Purpose: Any lawful activity. cert. of limited partnership is filed is: Notice of Registration of JUVELIER & County. SSNY designated as agent Sec. of State of the State of DE, John O’SULLIVAN, LLP. Certificate filed of LLC upon whom process against 40 WEST 69TH OWNERS LLC G. Townsend Building, 401 Federal with Secy. of State of NY (SSNY) on NOTICE OF FORMATION OF The Law it may be served. SSNY shall mail Articles of Org. filed NY Sec. of State St., Suite 4, Dover, DE 19901. 6/23/09. Office location: NY County. Offices of Michelle R. Tepper PLLC. copy of process to c/o Reinhardt (SSNY) 11/25/09. Office in NY Co. Purpose: to engage in any lawful act. SSNY designated as agent of LLP Arts. of Org. filed with Secy. of State LLP, 44 Wall St., 10th Fl., NY, NY SSNY desig. agent of LLC upon upon whom process against it may of N.Y. (SSNY) on 9/2/09. Office loca- 10005. Purpose: any lawful activities. whom process may be served. Notice of Formation of RBP JOINT be served. SSNY shall mail process tion: New York County. SSNY desig- SSNY shall mail copy of process to VENTURE LLC. Arts. of Org. filed to: 800 Third Avenue, 11th Fl., NY, nated as agent of LLC upon whom NOTICE OF FORMATION OF Cowan, Liebowitz & Latman, PC, with Secy. of State of NY (SSNY) on NY 10022. Purpose: practice the process against it may be served. Patrimoine Vivant LLC. Arts. of Org. 1133 6th Ave., NY, NY 10036-6799 01/20/10. Office Location: NY profession of law. SSNY shall mail process to: 817 filed with Secy. of State of N.Y. (SSNY) Attn: Peter Porcino. Purpose: Any County. Princ. office of LLC: 60 Broadway, 5th Floor, New York, NY on 1/19/10. Office location: New York lawful purpose. Columbus Circle, NY, NY 10023. NOTICE OF FORMATION OF Lil Foodie 10003. Purpose: any lawful activity. County. SSNY designated as agent of SSNY designated as agent of LLC LLC. Arts. of Org. filed with Secy. of LLC upon whom process against it may NOTICE OF FORMATION OF Funky upon whom process against it may State of N.Y. (SSNY) on 11/24/09. Notice of Qualification of LionHedge be served. SSNY shall mail process But Elegant LLC. Arts. of Org. filed be served. SSNY shall mail process Office location: New York County. AGD Fund, LLC, App. for Auth. filed to: 420 East 85th Street New York, NY with the Secy. of State of NY (SSNY) to c/o Corporation Service Co., 80 SSNY designated as agent of LLC Sec’y of State (SSNY) 11/18/09. 10028. Purpose: any lawful activity. on 10/05/09. Office location: NY Co. State St., Albany, NY 12207. upon whom process against it may be Office location: NY County. LLC org. SSNY has been designated as agent Purpose: Any lawful activity. served. SSNY shall mail process to: in DE 11/16/09. SSNY designated as Name of LLC: SILK ACUPUNCTURE of LLC upon whom process against 80 John Street, #3G New York, NY agent of LLC upon whom process LLC. Art. of Org. filed Dept. of State it may be served. SSNY shall mail Notice of Formation of Underhill 10038. Purpose: any lawful activity. against it may be served. SSNY shall of NY on 8/14/09. Off. Loc. in NY: NY process to: 230 Mulberry St., NY, NY Holdings, LLC; Arts of Org., filed with mail copy of process to 405 Park Cty. Secy. of State designated as 10012. Purpose: any lawful activity NY Sec. of State (“SSNY”) Ave., Ste. 803, NY, NY 10022. DE agent of LLC upon whom process 02/02/2009. Office in New York office addr.: CSC, 2711 Centerville against it may be served. Sec. of County; SSNY designated agent for Rd., Wilmington, DE 19808. Cert. of State shall mail a copy of process to: service of process with copy mailed Form. on file: SSDE, Townsend 47 West 13th St., NY, NY 10011. to Attn: Melissa Tomkiel, Esq., Pryor Bldg., Dover, DE 19901. Purpose: Purpose: acupuncture. Cashman LLP, 410 Park Avenue, any lawful activities. 10th Floor, New York, NY 10022, All Notice of Formation of FIFTY WEST lawful business purposes. NOTICE OF FORMATION of ALIOMI MANAGEMENT LLC. Arts. of Org. filed LLC. Articles of Organization were with Secy. of State of NY (SSNY) on Notice of Formation of Joseph A. filed with The Secretary of State of 12/30/09. Office location: NY County. New York (SSNY) on 11/25/2009. Fiordaliso, LLC. Arts. of Org. filed KAROON.COM LLC a domestic SSNY designated as agent of LLC Office location: New York County. with Secy. of State of NY (SSNY) on Limited Liability Company (LLC) filed upon whom process against it may be SSNY has been designated as agent 11/6/09. Office location: NY County. with the Sec of State of NY on served. SSNY shall mail process to: of the LLC upon whom process Notice of Qualification of Alene SSNY designated as agent of LLC 12/22/09. NY Office location: New 40 W. 57th St., 23rd Fl., NY, NY 10019. against it may be served. SSNY shall Candles, LLC. Authority filed with NY upon whom process against it may York County. SSNY is designated as Purpose: any lawful activity. mail a copy of any process to the LLC Dept. of State on 12/8/09. Office be served. SSNY shall mail process agent upon whom process against at 353 West 56th Street, Apt. 9B, New location: NY County. LLC formed in to: 155 W. 68th St., #512, NY, NY the LLC may be served. SSNY shall Notice of Formation of Tejabe Realty York, NY 10019. Purpose: For any NH on 12/2/08. NY Sec. of State 10023. Purpose: any lawful activity. mail a copy of any process against Holding, LLC. Articles of Organization lawful purpose. designated as agent of LLC upon the LLC served upon him/her to The filed with Secy. of State of NY (SSNY) whom process against it may be Name of Foreign LLC: Orchard Hill LLC, 603 W. 115th St., Ste. 342, NY, on 01/07/10. Office location: NY Notice of Formation of eBooleant served and shall mail process to the Management GP LLC. App. for Auth. NY 10025. General Purposes. County. SSNY designated as agent of filed NY Dept. of State: 11/19/09. Consulting, LLC. Arts. of Org. filed LLC upon whom process against it NH and principal business address: Jurisd. and date of org.: DE 11/17/09. with NY Dept. of State on 12/30/09. may be served. SSNY shall mail 51 Scarborough Lane, Milford, NH Cty off. loc.: NY Cty. Princ. bus. loc.: Notice of Formation of FOREMOST Office location: NY County. Sec. of process to the LLC, c/o Charles W. 03055. Arts. of Org. filed with NH 623 Fifth Ave., 20th Fl., NY, NY 10022. CONSTRUCTION LLC. Arts. of Org. State designated as agent of LLC Weiss, Esq., 225 Old Country Road, Sec. of State, 107 N. Main St., PO Sec. of State designated as agent of filed with Secy. of State of NY (SSNY) upon whom process against it may Melville, NY 11747. Purpose: any Box 4989, Concord, NH 03301. foreign LLC upon whom process on 12/16/09. Office location: NY County. be served and shall mail process to: lawful act or activity. Purpose: any lawful activity. against it may be served. The Sec. of SSNY designated as agent of LLC c/o CT Corporation System, 111 8th State shall mail copy of process to: upon whom process against it may Ave., NY, NY 10011, regd. agent Notice of Qualification of Hanover Notice of formation of REDLICH & The LLC, 623 Fifth Ave., 20th Fl., NY, be served. SSNY shall mail process upon whom process may be served. Acquisition II LLC. Authority filed COMPANY, LLC a domestic Limited NY 10022. Addr. of foreign LLC in DE to: 40 W. 57th St., 23rd Fl., NY, NY Purpose: any lawful activity. with Secy. of State of NY (SSNY) on Liability Company (LLC). Articles of is: National Corporate Research, Ltd., 10019. Purpose: any lawful activity. 12/22/09. Office location: NY County. Organization filed with the Secretary 615 S. DuPont Hwy., Dover, DE Notice of Formation of Elyse Paris LLC formed in Delaware (DE) on of State on January 30, 2009, NY 19901. Auth. officer in DE where Name of LLC: 170 East 83rd Street Designs LLC. Arts. of Org. filed with 12/21/09. SSNY designated as agent Office Location: New York County. Cert. of Form. filed: DE Sec. of State, LLC. Art. of Org. filed Dept. of State NY Dept. of State on 12/15/09. Office of LLC upon whom process against Secretary of State is designated as Townsend Bldg., Dover, DE 19901. of NY on 12/11/2009. Off. Loc. in NY: location: NY County. Princ. bus. addr.: it may be served. SSNY shall mail agent upon whom process against Purpose: any lawful activity. NY Cty. Secy. of State designated as 156 W. 56th St., NY, NY 10019. Sec. process to the DE address of LLC: the LLC may be served. Secretary of agent of LLC upon whom process of State designated as agent of LLC Corporation Service Company, 2711 State shall mail a copy of any Notice of Qualification of Morgan against it may be served. Sec. of upon whom process against it may Centerville Rd., Wilmington, DE process against the LLC served upon Stanley HedgePremier/FrontPoint State shall mail a copy of process to be served and shall mail process to: 19808. Arts. of Org. filed with DE him/her to: 16 West 16th Street, Financial Services Fund LP. Authority princ. bus. loc.: c/o Marjorie E. c/o Windels Marx Lane & Mittendorf, Secy. of State, 401 Federal St., Ste. Apartment 14JN, New York, New filed with NY Dept. of State on Nesbitt, 445 Park Ave., 10th Fl., NY, LLP, 156 W. 56th St., NY, NY 10019, 4, Dover, DE 19901. Purpose: any York 10011. Purpose: To engage in 1/28/10. Office location: NY County. NY 10022. Purpose: ownership and Attn: Bruce Bronster, Esq. Purpose: lawful purpose. any lawful act or activity. LP formed in DE on 12/17/09. NY operation of real estate. any lawful activity. Sec. of State designated agent of LP NOTICE OF FORMATION OF Play Notice of Qualification of TradeForce upon whom process against it may Notice of Formation of limited liability Notice of Formation of limited liability Me LLC. Article of Organization filed Staffing Solutions of Colorado, LLC. be served and shall mail process to company (LLC). Name: VINOS company (LLC). Name: VINOS LIBRES with the Secretary of State of NY Authority filed with NY Dept. of State the principal business addr.: c/o LIBRES LLC. Arts. Of Org. Filed with WINE MERCHANTS, LLC. Arts. of (SSNY) on 12/15/2009. Office loca- on 1/13/10. Office location: NY Morgan Stanley HedgePremier GP the Dept. of State of NY on Org. Filed with Dept. of State of NY tion NEW YORK County. SSNY has County. LLC formed in CO on LLC, 522 5th Ave., 13th Fl., NY, NY November 16, 2009. Office loc.: New on November 19, 2009. Office loc.: been designated as agent upon 3/19/08. NY Sec. of State designated 10036. Regd. agent upon whom York County. Secretary of State of New York County. Secretary of State whom process against it may be as agent of LLC upon whom process process may be served: Todd Hand, New York (SSNY) is designated as of New York (SSNY) is designated as served. The Post Office address to against it may be served and shall Morgan Stanley & Co., 2000 agent of LLC upon whom process agent of LLC upon whom process which the SSNY shall mail a copy of mail process to: c/o CT Corporation Westchester Ave., Purchase, NY against it may be served. The princi- against it may be served. The princi- any process against the LLC served System, 111 8th Ave., NY, NY 10011, 10577. DE addr. of LP: 1209 Orange pal business and address SSNY shall ple business and address SSNY shall upon him/her is C/O the LLC 11 regd. agent upon whom process may St., Wilmington, DE 19801. mail copy of process is to M.S. mail copy of process is to M.S. West 42nd Street, 15th Floor, New be served. CO and principal busi- Name/addr. of genl. ptr. available Rapaport, Esq., 6th floor, 18 East Rapaport, Esp., 6th floor, 18 East York, NY 10036. Purpose of LLC: to ness addr.: 15660 E. Hinsdale Dr., from NY Sec. of State. Cert. of LP 48th St. New York, New York 10017. 48th St., New York, New York 10017. engage in any lawful act or activity. Centennial, CO 80112. Arts. of Org. filed with DE Sec. of State, 401 Management of the LLC shall be by Management of LLC shall be by one Street address of Principal Business filed with CO Sec. of State, 1700 Federal St., Dover, DE 19901. one or more members. Purpose: To or more members. Purpose: To location is: 11 West 42nd Street, Broadway, Ste. 200, Denver, CO Purpose: any lawful activity. engage in any lawful act or activity. engage in any lawful act or activities. 15th Floor, New York, NY 10036. 80290. Purpose: any lawful activity.

22 | Crain’s New York Business | February 15, 2010 20100215-NEWS--0023-NAT-CCI-CN_-- 2/12/2010 7:42 PM Page 1

FOR THE RECORD

storage and related services for the Broadway, a 330,000-square-foot president and chief executive, exercised inactive and semi-active records for New building owned by 902 Associates. options on 1,864,486 shares of common ABOUT THIS SECTION York City government agencies. For FirstService Williams’ Perry Mesmer stock at prices ranging from $28.86 to FOR THE RECORD is a weekly listing of information from the public record that additional information, contact Frederic and Marty Meyer repped the owner, and $30.06 on Feb. 3, in a transaction worth Grevin at (212) 788-8615 or the tenant was repped in-house. The $55,277,060. can help businesspeople in the New York area find opportunities, potential [email protected]. asking rent was $38 per square foot. new clients and updates on competitors. G IAC/InterActiveCorp (IACI) To ask questions or get more information on this section, contact Denise G Health and Hospitals Corp. G Cramer-Kresselt Co. signed a 10-year, Liberty Media Corp. sold 636,700 Southwood at [email protected]. Seeks competitive sealed bids by 10 a.m. 16,500-square-foot lease for the fifth shares of common stock at prices on Feb. 25 for printing services for the floor of 902 Broadway. FirstService ranging from $20.21 to $21.00 community newsletter in Spanish and Williams’ Perry Mesmer and Marty between Feb. 2 and Feb. 3, in a English for the North Brooklyn Health Meyer repped the owner, and Newmark transaction worth $13,276,523. Network. Contact Deborah Royster at Knight Frank’s Rob Silver acted on The company now indirectly holds BANKRUPTCIES protection on Jan. 26. The filing cites (718) 260-7694 or [email protected]. behalf of the tenant. The asking rent was 1,076,300 shares. estimated liabilities of $500,001 to $38 per square foot. The following listings are selected from the $1 million and assets of $100,001 to G New York City Fire Department G Veeco Instruments Inc. (VECO) most recent available filings by companies $500,000. Among the creditors with the Seeks competitive sealed bids by 4 p.m. G RoadRunner Records signed a five- Edward H. Braun, chairman of the seeking bankruptcy protection in the largest unsecured claims are TD Bank, on Feb. 25 for the disposal of medical year, 16,500-square-foot lease for the board, exercised options on 361,100 Southern and Eastern Districts of New owed $150,000; and FIA Cards, owed waste. For more information, contact eighth floor of 902 Broadway. The owner shares of common stock at prices York. Information was obtained from U.S. $15,850. Kristina LeGrand at (718) 999-1233 or was repped by FirstService Williams’ ranging from $16.56 to $21.36 between Bankruptcy Court records available on [email protected]. Perry Mesmer and Marty Meyer, and Jan. 27 and Feb. 3, in a transaction worth Public Access to Court Electronic Records. the tenant was repped by Joshua $7,087,067. During the same period, he Listings are in alphabetical order. GOVERNMENT CONTRACT G Office of Chief Medical Examiner Goldman of Cushman & Wakefield. sold 361,100 shares at prices ranging OPPORTUNITIES Requests competitive sealed bids by 3 The asking rent was $38 per square foot. from $33.05 to $35.09, in a transaction G Air America Media p.m. on April 6 to provide acid waste worth $12,178,586. He now directly 641 Sixth Ave. Following are selected contract neutralization system tank and piping RETAIL holds 1,030,000 shares. Filed for Chapter 7 bankruptcy opportunities recently announced by New refurbishing services. An optional pre- G Filene’s Basement signed a 12-year, protection on Feb. 3.The filing cites York City agencies.To learn how to sell bid conference will be held at 10 a.m. on 22,700-square-foot lease for retail space G Estée Lauder Cos. (EL) estimated liabilities of $10,000,001 to goods and services to city government, March 2 at 421 E. 26th St., 10th-floor at 2234 Broadway. The building is Cedric Prouvé, group president, $50 million and assets of $1,000,001 to visit www.nyc.gov/selltonyc. For a conference room. Optional site visits can owned by Friedland Properties, which international, exercised options on $10 million. Among the creditors with searchable database of current procurement be scheduled for Feb. 24 or Feb. 25. For was represented in-house. Robert 145,000 shares of common stock at the largest unsecured claims are notices, visit www.nyc.gov/cityrecord. questions, contact Luis Rodriguez at Gibson and Thomas Citron of prices ranging from $32.15 to $43.69 on Pendulum Media, owed $15,819,991.12; Listings are alphabetical by category (212) 323-1733. Cushman & Wakefield negotiated on Feb. 2, in a transaction worth and 641 AAM, owed $122,912.97. and department. behalf of the tenant. The asking rent was $5,021,500. Between Feb. 2 and Feb. 3, not available. he sold 145,000 shares at prices ranging G Grape Realty Inc. CONSTRUCTION SERVICES REAL ESTATE DEALS from $56.00 to $56.09, in a transaction 5 Carol Drive, Mount Kisco, N.Y. G School Construction Authority worth $8,121,179. He now directly Filed for Chapter 11 bankruptcy Requests competitive sealed bids by Companies that would like to have details STOCK TRANSACTIONS holds 23,173 shares. protection on Jan. 25. The filing cites 11:30 a.m. on Feb. 17 for the repair of of their recent transactions appear in these estimated liabilities of $100,001 to the concrete facade at I.S. 292 in listings should e-mail descriptions Following are recent insider transactions at G Amy DiGeso, executive vice president $500,000 and assets of $500,001 to Brooklyn. For additional information following this format to New York’s largest publicly held companies of global human resources, exercised $1 million. Among the creditors with about this solicitation, contact Anthony [email protected], with filed with the Securities and Exchange options on 47,334 shares of common the largest unsecured claims is Valley Oil Largie at (718) 752-5842. “Real estate transaction” in the subject line. Commission by executives and major stock at prices ranging from $35.00 to Co., owed $18,192.87. Deals are listed in order of square footage. shareholders. Listings are in order of $39.56 on Feb. 2, in a transaction worth GOODS AND SERVICES transaction value.The information was $1,770,690. On the same day, she sold G Hernasco Testing Laboratory Inc. G Department of Records and OFFICE obtained from Thomson Reuters. 48,334 shares at prices ranging from 1300 Jericho Turnpike, Information Services G Lehr Construction signed a seven- $55.50 to $55.55 in a transaction worth New Hyde Park, L.I. Requests competitive sealed bids by year, 33,000-square-foot lease for the G J.P. Morgan Chase & Co. (JPM) $2,682,650. She now directly holds Filed for Chapter 11 bankruptcy 10:30 a.m. on March 26 for off-site sixth and seventh floors at 902 James Dimon, chairman of the board, 11,696 shares.

to explain the benefits to all sides of Lorraine Shanley, a principal in the new pricing strategy. Amazon consulting firm Market Partners In- Staring down Bezos would make more money and pub- ternational. “Macmillan allowed Energy jolt lishers would make less, but “we will [Amazon] to swiftly change its Continued from Page 1 ness—was crucial in helping pub- have a stable and rational market,” terms without [the retailer] having Mr.Sargent stepped into the role lishers hit the reset button on the ex- he said. to watch its market get eaten away.” needed three weeks ago when he became the ploding e-book category. Under the agency model, the re- The question now is what con- first publisher to present the online It didn’t hurt that Apple had just tailer will keep 30% of the retail sumers will do when faced with high- Continued from Page 2 giant with a new pricing structure introduced a competing e-reader, price; the publisher takes the rest. er e-book prices.Some retailers warn gram called Flex Tech, with a 50% that would take effect in March. transforming the power equation. The arrangement will put less mon- that the new pricing will be tricky. discount for businesses, has com- Dubbed the agency model, it does But Mr. Sargent, who declined to ey in publishers’ pockets because “What we see in the data is that pleted only 190 since 2000. away with the retailer’s cut-rate comment for this article, right now, Amazon and as you go higher than $10, sales de- Around Labor Day, Consolidat- $9.99 sticker price for electronic still gets props for smooth- other online retailers are crease quite rapidly,” says Michael ed Edison launched a small business versions of most new books and ing the way. paying them $12 or Tamblyn,vice president of sales at e- program offering up to $100 worth bestsellers, instead pricing them be- “It could have turned $13—the wholesale price bookstore Kobo.“It’s going to be an of energy-efficient equipment, but tween $12.99 and $14.99. into a really incendiary of a $25 hardcover interesting challenge to introduce only a handful of businesses have The point isn’t for publishers to conflict,”says Larry Kirsh- book—for those $9.99 e- those books at higher price points.” taken up the offer.The program has make more money—in fact they’ll baum, a former head of the books. funding for 6,000 customers a year; make less—but to have control of Time Warner Book Group Publishers are willing Publishers, weakly it can also pay for up to 70% of the pricing over the long term. who now runs his own lit- to take a hit under the publishers respond that they cost of large-scale installations. The major publishers had just erary agency. “Because of Mr. Sargent’s new pricing model be- have no choice,since the $9.99 price Mark Thomson, small business worked out the agency model with his low-key style, he was stand was cause they’ve long felt threatens the future of the business. program manager at Con Edison, Apple for its new iPad tablet and able to keep the game crucial in that the $9.99 price tag “This is why I wanted to move believes companies suspect a catch Mr. Sargent insisted on the same within bounds. There was undermined the per- against $9.99 before it became en- when they’re offered free money for terms with Amazon. If the retailer no roughing the passer helping ceived value of books, trenched,” says David Young, chief energy efficiency. And there is in- wanted to keep its under-$10 price, here.” publishers hit while also eroding hard- executive of Hachette Book Group deed a catch, say small business it could sell e-books only months af- The son of a Doubleday the e-book cover sales, a cornerstone and a longtime critic of Amazon’s owners: time. ter the hardcover editions came out. CEO and great-grandson reset button of their business. pricing. He adds that there will be a Lewis Gold, owner of New York Amazon responded by pulling all of Frank Doubleday, the For its part, Amazon range of prices under the agency Beverage Wholesalers Corp., spent Macmillan titles from its site. It took publisher’s founder, Mr. doesn’t mind e-books be- model—all of them still lower than more than 50 hours applying for a week of talks to bring the books Sargent has dealt with ing a loss leader, since it those for physical books. loans and grants for solar panels from back, even after the retailer seemed seismic shifts before. As treasurer of makes money on its $259 Kindle e- Pricing isn’t the only industry the Bronx Initiative on Energy and ready to give in to Macmillan’s terms. the Association of American Pub- readers. But Amazon has also been concern. Issues like e-book lending the Environment,the Bronx Overall lishers,he played a key role in a 2005 operating without a serious com- and digital rights management still Economic Development Corp. and Noshing at McD’s, not Michael’s suit against search engine Google petitor—something that will must be hashed out by new and tra- NYSERDA. Mr. Gold learned a publishing blue blood who sel- over unauthorized digitizing of change once Apple’s iPad, with its ditional media. about these programs only after run- dom wears a tie and who on occasion copyrighted books. He then cham- iBookstore, goes on sale. “The assumption that new me- ning into a colleague at a meeting. chooses McDonald’s for agent pioned the settlement that was Some observers think Macmil- dia will always prevail is a mistake,” “I don’t know how anybody else lunches, Mr. Sargent would prefer reached three years later. lan did Mr. Bezos a favor. says Peter Osnos, a former publish- finds out about them,” he says. “It’s not to be seen as a hero. But ob- In the current dispute, Mr. Sar- “Amazon had to realize it was go- er and senior media fellow at The not like they’re advertising it,or call- servers say that his cool-headed ap- gent has used his statements to ing to be competing against its own Century Foundation. “Publishers ing us to get these grants. It’s still a proach—backed by a quiet tough- Macmillan authors and their agents worst nightmare—Apple,” says have to assert their interests.” job to do this whole process.”

February 15, 2010 | Crain’s New York Business | 23 20100215-NEWS--0024-NAT-CCI-CN_-- 2/12/2010 7:10 PM Page 1

Business to the ramparts! Ground Zero arts center

Continued from Page 1 wanted to compete in Albany. Alliance mem- Continued from Page 1 Recognizing those challenges, some offi- sue silos and casting aside geographical bers are already raising money—with a report- has released the $50 million needed to con- cials at the LMDC are fighting a rearguard ac- grudges that prevented them from forming a ed goal of $5 million—and likely will focus on struct the subterranean support structure for tion to shift the center to the Deutsche Bank unified political front in the past. at least half a dozen state senate races in the fall. the center, which will be built in the area site at 130 Liberty St. Work there could begin The business groups have coalesced around “If you think you can sit back and talk and bounded by Fulton, Greenwich, Vesey and at the end of the year—far sooner than at an emerging policy platform of job creation not engage on the political side, I have a Washington streets near the 1,776-foot-high Ground Zero. And the estimated cost of and fiscal responsibility and plan to spread it Brooklyn Bridge to sell you,” says Joseph 1 World Trade Center. around $300 million would be much lower,say during the fall elections in a decidedly grass- Strasburg, president of the Rent Stabilization “We are more optimistic about the per- advocates of the Deutsche Bank site. roots manner: knocking on doors, handing out Association, which represents 25,000 city forming arts center now than ever,” says Lin- leaflets and blasting hundreds of thousands of property owners. “The only time elected offi- da Shelton, executive director of the Joyce, the Not giving up the fight e-mails.Transitioning from checkbook to shoe cials respond is if they face the prospect of be- only group left of the four cultural organiza- in fact,the LMDC is still conducting a study leather politics by November will be a chal- ing voted out of office.” tions originally chosen by the city to inhabit of the two areas. Advocates of the Deutsche lenge—especially when the shoe leather is of But building a political operation from the Ground Zero site. Bank site,such as LMDC board member John the wing-tip variety. But business leaders say scratch is easier said than done. A test run last But even if the foundation work moves Zuccotti, don’t seem to believe the site deci- out-of-control state spending has left them year by REBNY to support candidates for City ahead as planned, the project faces numerous sion is final, or will be even after the under- with no choice but to intensify efforts on be- Council through the Independence Party pro- challenges, leaving skeptics questioning ground work is completed. half of candidates with pro-business platforms. duced mixed results, although that effort will whether it will ever be built. “I am hopeful and optimistic that after a “We have to demonstrate involvement in continue. Strategists say that mailings were ill- For starters, once the underground work is timely and responsible evaluation of the pos- the political process not just by writing checks, timed and off message and that little effort was finished, the city will have to wait at least four sible sites,the remaining issues will be resolved but also by having our membership show up,” put into face-to-face talks with voters. years to begin construction on the actual quickly and the center developed expeditious- says CB Richard Ellis Chief Executive Mary “These groups aren’t used to playing polit- building, because the temporary PATH sta- ly,” says Mr. Zuccotti, who is also U.S. Chair- Anne Tighe, REBNY’s new chairman. “This ical hardball,” says Bill O’Reilly, a Republican tion that is on the site can’t be removed until man of Brookfield Properties, which owns the isn’t about supporting Republicans or Demo- consultant. “For decades, elected officials rep- the permanent transportation hub is finished. World Financial Center. crats; it’s about supporting candidates who resented their interests, but suddenly there’s a Estimates call for the Santiago Calatrava-de- Nevertheless, city officials continue to as- support business issues.” vacuum.” signed station to be finished in 2014, but as is sert that the location is a done deal and that the REBNY President Steven Spinola has often the case with construction, there could performing arts center will serve as an anchor reached out to organizations across New York Terror trial lobbying success be delays. to the entire Trade Center complex. that believe cutting state spending will gener- rebny’s more recent attempt to move the Sept. By then, building costs will likely be high- “Our goal is to realize the original master ate the conditions for companies to create jobs. 11 terror trials from the city was far more effec- er, and it is difficult to gauge what the plan, which locates the cultural center at the The groups suspect that message will resonate tive. That campaign had grassroots elements: fundraising environment will be like. heart of the site,”says Kate Levin,the city’s cul- with a populace that has grown weary as the The group built a Web site, movethetrial.com, tural affairs commissioner. “The performing state’s unemployment rate continues to rise and got members to send e-mails to officials. A tough nut to crack arts center is key to the area’s revitalization.” and its budget deficit widens. Some real estate leaders hope last month’s ms. shelton says that final estimates for the And city officials seem undaunted by the The business leaders Supreme Court ruling cost of the project are still being worked out, project’s challenges. have been in touch for that allows corporations though sources close to the Port Authority say “It’s not a big secret that the World Trade about a year—since they ‘These groups are to spend freely in federal they expect that the “arts community”will need Center site is one of the most complex real es- found themselves unable elections will bolster a to raise around $500 million for the center. tate development projects under way any- to head off Albany’s pas- not used to playing pending appeal of a city “The city is not giving up, and the Joyce is where, with more than its fair share of starts sage of new levies on law that limits spending not giving up, but the delays have now put us and stops,” a spokesman for the mayor’s office payrolls and a “million- political hardball’ by corporations and lob- in an economic climate that will have a long- says.“But the performing arts center is an im- aire’s” tax on incomes byists,but not by unions. term systemic impact on funding,” says Nor- portant component of the plan, we’re com- above $300,000. Mean- But there are no ma Munn, chairperson of the New York City mitted to making it happen, and we wouldn’t while, the state budget quick fixes when it Arts Coalition. “There’s a general, overriding be starting construction on its foundation in rose to $133 billion.The comes to building win- sense that the project seems to be increasingly the coming months if the project was in loose alliance includes ning campaigns. It took unlikely.” doubt.” groups like the Rent Stabilization Association, the Working Families Party—whose impact the Long Island Association, Unshackle Up- business leaders say they need to blunt—nearly state, the Building Trade Employers’ Associa- a decade to make significant electoral gains. tion and the National Federation of Indepen- “They’re smart to try to figure out a way to Inn crowd in Times Square dent Business/New York, among many others. do what they’re trying to do,” says one Demo- “We all realized that if we are standing on cratic strategist.“But the big question is,do they our own, we are not likely to be successful,” have any real interest,know-how or understand- Continued from Page 2 rates outpace those of the rest of the city as says Mike Elmendorf, New York state direc- ing of what makes a difference in elections?” hotel,” says Leon Goldberg, director of sales well, according to the Times Square Alliance. tor of the NFIB. The groups also could have trouble coming and marketing for the Marriott Marquis, lo- It is this growth that convinced Tishman to Not all of the organizations will actively par- up with a cohesive plan,despite the talk of uni- cated on Broadway and West 47th Street. Of build so close to the Westin.In fact, the West- ticipate in the political push. The Partnership ty, a Republican strategist observes.“The cor- course, Mr. Goldberg doesn’t view the Inter- in is one of the most successful hotels in the for New York City,for example, doesn’t engage porate boardroom is not well-suited for tack- Continental as a direct competitor to his city in terms of its operating profits, occupan- in partisan politics, but has organized a Feb. 23 ling politics,” the strategist says. “They’re 2,000-room hotel, which is popular with con- cy and room rates, according to sources famil- summit in Albany of more than 100 state busi- going to spend months sitting around looking vention groups. iar with its numbers. ness leaders to hammer out details of an anti- for best practices while the Working Families Mr. Snyder says that the Westin’s annual tax and anti-state-spending platform.Other al- Party takes over the state.” Upgrade just in time average occupancy rate from 2005 to 2007 was liance members will spread the fiscal discipline REBNY members have heard from about the westin won’t look shabby next to its 93% and that even last year it achieved 87%.In message through beefed-up online social net- half a dozen campaign consultants and poll- brand-new sibling. A well-timed three-year terms of profitability,Tishman benefited from works, without taking sides in political races. sters, including former Bloomberg Campaign renovation will be completed next month in tax breaks meant to encourage development in Manager Bradley Tusk,about how they would which “we will have renovated virtually every Times Square. Checkbooks versus boots on the ground organize the effort if hired. Jay Kriegel, a sen- square inch of the hotel,” says Mr. Snyder. Drew Schlesinger, the general manager of business has always been a force in local ior adviser for The Related Companies, is co- It is not a coincidence, either, that the the InterContinental Times Square, sees the politics, of course, using its checkbook to gain ordinating the push.He declined to comment. Crowne Plaza Times Square Manhattan, a Westin as fair competition. access to elected officials. In 2007 and 2008, Even if the right talent is imported and op- brand owned by InterContinental Hotels “My goal is to be more successful than that for example, businesses and trade groups con- erational kinks are worked out, business still Group,also completed an $85 million renova- property,” he says. To that end, he has a fast- tributed $38.7 million to state Legislature must find candidates with broad appeal.WFP tion last year. approaching deadline to vet and order the candidates,outgunning labor nearly threefold, President Dan Cantor says voters won’t buy The fact that Times Square is attracting so high-quality amenities that will set his hotel according to an analysis by the New York Pub- candidates who reflexively argue against tax much hotel investment—another three small apart. lic Interest Research Group. increases on the wealthy and for cuts in educa- hotels representing some 900 rooms are also in “The political failures of the business com- tion and health care spending. development in the district—reflects its pop- Lounging around is hard work munity in New York are not tied to lack of “They aren’t new thoughts,” Mr. Cantor ularity as an entertainment and corporate des- “i have eight different bathrobes I try on,”he money,”says Blair Horner,NYPIRG’s legisla- says. “But those ideas have gotten us into the tination. says, adding that he and his staff take home tive director. “Unions are more effective with mess where society is wildly unequal and we That is reflected in the design of the Inter- sample pillows and sheets to test them as well. far less money because they have more boots don’t have the resources we need to invest in Continental, which will have a street-level He also has his eye on the W Times Square, on the ground.” infrastructure, schools and health care.” lobby and restaurant. The other large, estab- which commands the highest room rates in Executives who’ve not traditionally put For now, business leaders are strategizing lished hotels in Times Square have lobbies the district. Mr. Schlesinger says the Inter- much stock in grassroots organizing are finally daily on how best to move forward for the fall several stories above the street because they Continental’s rates will soon surpass the W’s coming to the same realization. Last year, Gov. elections and beyond. Ms. Tighe acknowl- were built when the neighborhood was seedy. rates, which are about $300 a night. David Paterson’s top adviser, Larry Schwartz, edges there will be a “learning curve,” but she Today, the cluster of about 15 hotels in the W General Manager Terry Lewis has no helped convince Mr. Spinola that business believes “the environment is certainly ripe for neighborhood accounts for 21% of all the ho- intention of ceding that ground.“We won’t let would have to get active in political races if it a thoughtful kind of change.” tel rooms in Manhattan, and their occupancy that happen,” he says.

24 | Crain’s New York Business | February 15, 2010 20100215-NEWS--0025,0026-NAT-CCI-CN_-- 2/12/2010 11:39 AM Page 1

<3% 2010 projections for salary-increase budgets in the U.S., the lowest in two decades BUSINESS LIVES Source: The Conference Board HOT JOBS EXECUTIVE INBOX

CHIEF EXECUTIVE Anne Fisher ORGANIZATION American Friends of Magen David Adom A hive buzzing JOB DESCRIPTION Analyzing strategies, operations and with new media resources for the nonprofit, which supports Israel’s version of the startups Red Cross AFTER RUNNING her business MOST IMPORTANT TASKS Lead- from her apartment for more than ing the executive committee and a year, says Elizabeth Savage, “I board; expanding fundraising was going nuts from feeling so CREDENTIALS NEEDED Proven isolated. Nobody should be that success in a senior management glad to see the UPS guy.” role; familiarity with Israeli affairs Then a friend told her about SALARY Typically over $200,000, the Hive at 55, a shared office recruiters say space that opened at 55 Broad RECRUITER DRG St. in December. Now Ms. DOWNSIDE Having to travel to Savage, a new media marketing Israel on a regular basis consultant, spends three days a week working at the Hive. “I think UPSIDE Getting the chance to my business is going to take off chart a new course for growth OUT OF THE SKY: Darryl Pitt has little because of the connections I’m The Manhattan-based group time to hunt meteorites, making here,” she says. “Just trains volunteers and profession- but he buys and trades going to get a drink of water, you the objects like als to support Israel’s MDA, which have interesting conversations.” handles emergency medical baseball cards. needs, including disaster, ambu- The Hive at 55, intended to lance and blood services. nurture new media companies, is the city’s newest shared office —EMILY LAERMER space. (See www.nycedc.com for details from the city’s Economic Development Corp. on shared spaces for other industries.) EXECUTIVE MOVES Created in part by a $100,000 grant from the EDC to the Alliance CIT Group Inc.: John A. for Downtown New York, the Hive Thain, 54, was named chairman and chief provides entrepreneurs with executive at the private offices, faxes and provider of financing buck ennis printers, Wi-Fi, conference to small businesses rooms, a communal kitchen and and middle-market GOTHAM GIGS bike storage. (For a video tour, go companies. He was to www.Hiveat55.com.) chairman and chief executive at Merrill Lynch until its sale The space is affordable: to Bank of America. Fees range from $25 if you want The American Red Cross in Greater New to drop in for a day to $500 per York: Robert T. Imbornoni, 48, was A Meteoric Rise month for round-the-clock daily promoted to chief response officer from access. deputy response officer at the nonprofit “People do appreciate that it organization. if meteorites today are viewed as objects of art, Darryl Pitt is at Huron Consulting Group: Christopher H. ‘Meteorites is so much cheaper than renting Martorella, 45, was appointed managing least partly the reason why. He stumbled into the world of meteorite your own space in Manhattan,” director. He was previously chief are the collecting in the late 1980s and soon noticed that dealers didn’t says Elizabeth Berger, president executive of Urban Residential. distinguish between lumps of stone and the rare iron specimens that of the Downtown Alliance Beth Abraham Family biggest (www.downtownny.com). “But of Health Services: qualified as sculptures from outer space. ¶ “Every now and then, based they really want a community— Paul Rosenfeld, 59, on their angle of entry into the atmosphere and how they weather, that hum of activity you hear in joined the nonprofit cash crop continuing care meteorites can become sublime sculptural objects,” Mr. Pitt says. ¶ A an office.” organization as chief in the former professional photographer who owns an artist management The incubator program is just operating officer. He firm, he has had limited time for meteorite hunting, but he learned to one of about 50 projects to was previously senior Sahara’ help startups that the EDC has vice president and buy and trade the objects “like extraterrestrial baseball cards,” he says. launched in the past 18 months. executive director of continuing care He’s amassed the foremost collection of aesthetic iron meteorites and The city has every reason to want services at Saint Vincent Catholic Medical Centers. sparked a market for them when he put a selection on the block at the small companies to thrive: The PricewaterhouseCoopers: Richard Hulme, Phillips auction house in the mid-1990s. All the attention spurred an 225,559 businesses here with 45, was promoted to chief operating fewer than 100 employees are officer, global health services, at the increase in meteorite hunting that Mr. Pitt says has been a boon to the lifeblood of the local economy. professional services firm. He was researchers (and to television:The Science Channel recently debuted previously director, global brand and the series Meteorite Men). ¶ Desert nomads have also benefited. HAVE YOU EVER WORKED in a shared strategy. office? What did (or do) you like and Eisner: Gerard O’Beirne, 52, joined the “Meteorites are the biggest cash crop in the Sahara,” Mr. Pitt says. dislike about sharing space? Tell us at See EXECUTIVE MOVES on Page 26 —matthew flamm www.crainsnewyork.com/execinbox.

February 15, 2010 | Crain’s New York Business | 25 20100215-NEWS--0025,0026-NAT-CCI-CN_-- 2/12/2010 11:39 AM Page 2

RÉSUMÉ REVIEW Fashioning next Week Is your job search all it could be? We ask the experts. Director looks to bring tives from every walk of life—from shows. We want something for peo- NAME SIMON (ZHE) XU President Bill Clinton to Annie ple to do at an ancillary building, or OBJECTIVE culture, style together Leibovitz. we’ll set up something to do on cam- To use software engineering experience pus in the hour between shows. PROFESSIONAL EXPERIENCE when event moves Why does Lincoln Center work as a Everyone’s really excited about hav- United Courier Service, April 2009- to Lincoln Center venue for Fashion Week? ing culture and the arts and fash- December 2009 Having Mercedes-Benz Fash- ion together, not just for fash- Software engineer ion Week at Lincoln Center ion shows, but for different Managed three Web site integration projects; initiated and built online will bring together the high- presentations and events and BY ADRIANNE PASQUARELLI payment system est cultural aesthetics with photo shoots or award shows. Alcatel-Lucent, Murray Hill, N.J., June 2008-August 2008 all of these different design- Intern, software engineer ercedes-benz Fashion ers and artists. It’s the epi- Are designers grumbling about Redesigned satellite radio modulator storage system; developed Week is now under way, center of fashion and lugging their collections uptown? software to measure satellite transmission quality but Stephanie Winston culture. Not at all. The response has Wolkoff, who was re- been unbelievable. We’re New York University, Polytechnic Institute, September 2007-May 2008 Mcently appointed director of fash- Will the move working on ways to Research assistant ion for Lincoln Center, is already uptown turn off make it an attrac- Siemens, Wroclaw, Poland, July 2006-September 2006 thinking about attendees? tive place and offer Intern, software engineer the shows in At Bryant things Bryant Park EDUCATION September— Park, people couldn’t offer. NYU, Polytechnic Institute, M.S., electrical engineering, January 2009 when the were able to Shanghai Jiao Tong University, B.S., information engineering (with MOVERS & eight-day go to a Who are some of honors), July 2007 SHAKERS event will show and your must-see move uptown. go back designers for Résumé appears in condensed form. Stephanie to their runway shows? EXPERT ADVICE What prepared office. I love Vera Simon should apply his strong problem-solving skills to his job search. Winston you for your new We are Wang, Ralph That includes analyzing his past and current network, and creating a list of Wolkoff post? figuring Lauren and individuals he can talk to. He should also brush up on job-search skills I gained a lot out all of Oscar de la such as interviewing, and troubleshoot what doesn’t work well. If he’s not of marketing the ways to Renta, but then I sure what to do, hiring a coach could be well worth the investment. Simon and management experience at make get- also love Proenza should learn about what is current in his specialty by reading and by Sotheby’s and was Vogue’s director ting to Lin- Schouler and Marc researching the latest trends. It’s important to demonstrate that he has the of special events, where I worked coln Center Jacobs and Narciso directly with Anna Wintour. I convenient, Rodriguez.There are latest and greatest skills and industry knowledge. had a lot of different responsi- and of hav- so many different —connie thanasoulis-cerrachio, career services expert, Vault.com bilities, to put together all types ing it be- designers that I love To contact this candidate or to be featured in “Résumé Review,” e-mail us of events and projects. I created come a des- and can actually at [email protected]. amazing relationships, and I’ve tination wear because I’m maintained them with top execu- between so tall.

EXECUTIVE MOVES promoted to co-chief executive from co- president of AXA Distributors. recently at FiLife.com, where he had WTAS: John Farro, 40, was promoted to president at the strategic branding firm. Richard V.Silver, 54, was appointed chief been president and general manager. managing director from director at the He will continue in his role as chief administrative officer and chief legal Phillips Nizer: Richard J. Duffy, 62, joined independent tax firm. Continued from Page 25 creative officer. officer. He was most recently executive the law firm as a partner in the trusts Michael Maglio, 45, was promoted to accounting firm as a partner. He had David Srere, 51, was promoted to co- vice president and general counsel of and estates department. He was most managing director from director. been a partner at McGladrey & Pullen. chief executive from co-president and AXA Financial. recently a member at Cozen O’Connor. Chadbourne & Parke: John M. Hintz, Porter Novelli: Scott Grubin, 45, was will continue in his role as chief strategy Sonnenschein Nath & Rosenthal: Jeffrey J. Rosen Seymour Shapss Martin & Co.: 46, joined the law firm as a partner in appointed chief talent officer and officer. Murphy, 55, was promoted to managing Carolyn M. Glynn, 43, joined as director the intellectual property practice. He partner at the public relations firm. He Gettry Marcus Stern & partner from partner in the New York of fiduciary services at the accounting was previously a partner at Wilmer was previously at Bank of America Lehrer: Andrew P.Ross, office of the law firm. He is a member of and consulting firm. She was previously Hale. Securities/Merrill Lynch where he had 48, was promoted to the capital markets and commercial a contract partner at Satterlee Stephens Bond Schoeneck & King: Adin C. been head of human resources and first partner from senior finance practices. Burke & Burke. Goldberg, 56, joined the law firm as a vice president, legal department. manager at the Lime Wire: Zeeshan Zaidi, 35, was Partnership for New member in the labor and employment Merritt & Harris Inc.: Manny P.Kratsios, accounting and promoted to chief operating officer from York City: Arti Finn, department. He was most recently a 55, was promoted to president and chief financial services firm. head of global at the peer-to-peer 39, was named vice partner at Day Pitney. executive at the construction consulting AXA Equitable: James software development company. president for Quinn Emanuel Urquhart Oliver & Hedges: firm. He had been chief operating Shepherdson, 57, was TransitCenter: Daniel Neuburger, 47, was corporate affairs. She James Glass, 35, was promoted to partner officer. named president of the retirement named president and chief executive of was most recently at from of counsel at the law firm. Siegel + Gale: Howard Belk, 50, was savings business. He was previously the commuter benefits and mass transit the American Joseph Minias, 33, was promoted to support agency. He was most recently Museum of Natural partner from associate. president of Today’s Staffing. History, where she Arnold & Porter: David CORPORATE LADDER Experience Works: served as senior director of new business S. Berg, 46, was Karen Mastronardi, development. promoted to partner 51, was named New The PraediumGroup: King Lee, 38, was from counsel at the FESTIVAL ORGANIZER HEADS DOWNTOWN York state director at appointed chief accounting officer at the law firm. Marks Paneth & Shron: ROBIN SCHATELL, 49, was appointed executive director of the Alliance for the nonprofit training real estate investment firm. He was and employment previously a senior manager at KPMG. Donald M. May, 49, Downtown New York’s annual River to River Festival. She will help the event organization for older Peter Petron, 44, was named director of was named director of expand by bringing hundreds of artists to the festival, which runs from the workers. She was asset management. He was previously the litigation and Hudson River to the East River in lower Manhattan, south of Chambers Street. most recently at senior asset manager and group chief corporate financial advisory services Ms. Schatell has served as the director of programming Cornell University, where she had been operating officer at Investcorp Real group at the audit and accounting firm. for Riverside Park at the New York City Department of NY FarmNet human services and Estate Investments. He was most recently managing partner Parks and Recreation since 2005 and has extensive organization development director. Crowell & Moring: Henry Guy Burnett, at Experts-on-Experts. Labaton Sucharow: Jonathan Gardner, 44, 46, was named partner in the law firm’s Adelman Katz & Mond: Steven Finkelstein, experience in arts and festival programming. With the was promoted to partner from of international arbitration practice. He 55, was named tax director at the Department of Parks and Recreation, she led the counsel at the law firm. was previously co-head of the New York accounting and consulting firm. He was Summer on the Hudson Festival and David J. Goldsmith, 38, was promoted to international arbitration group and the previously tax manager at Spielman independently produced the Museum Mile partner from of counsel. Latin America practice group at Konigsberg & Parker. Festival and the High Five on Fifth Arts Weil Gotshal & Manges: David E. Wohl, Fulbright & Jaworski. 39, joined the law firm as a partner in TSC Design: David L. Lesesne, 50, was Festival. She has also been involved in arts EXECUTIVE PROMOTIONS programming at the 92nd Street Y. The the corporate department. He was most promoted to principal and continues as recently senior counsel at Simpson executive director at the The fastest way to get an announcement into River to River Festival was founded in 2002. Thacher & Bartlett. multidisciplinary design firm. Crain’s is to submit details online. Fill out the form —MAIA BLUME CBS Local Digital Media: Ezra Kucharz, Wey Lee, 60, was promoted to principal at www.crainsnewyork.com/submit. The 42, was named president. He was most and continues as chief operating officer. Executive Moves column is also available online.

26 | Crain’s New York Business | February 15, 2010 20100215-NEWS--0027-NAT-CCI-CN_-- 2/12/2010 11:40 AM Page 1 chemex / INSATIABLE CRITIC at the West Side YMCA for a lecture on flickr.com Gael Greene résumé renovation from 10 a.m. to 11:30 THE a.m. at 5 W. 63rd St. The event is free. For more info, call (212) 372-9878 or e- mail [email protected].

WEEK THURSDAY, FEBRUARY 25 Uptown option The SMALL BUSINESS DEVELOPMENT CENTER AT THE NEW YORK CITY COLLEGE AHEAD OF TECHNOLOGY will hold a marketing seminar for established businesses from FEB. 22-28 6 p.m. to 8 p.m. at the Howard Building, for big ol’ burgers 25 Chapel St., room 104, Brooklyn. The seminar is free. Call (718) 797-0187 or WHAT HE’S FORUMS e-mail [email protected]. 5 Napkin’s Broadway TUESDAY, FEBRUARY 23 LISTENINGTO ST. FRANCIS COLLEGE AND THE CULTURAL EVENTS Join Pick SETH ABRAMSON, the artistic debut needs time to MANHATTAN INSTITUTE for a forum on WEDNESDAY, FEBRUARY 24 journalism in the age of the Internet TRINITY CHURCH,at of the director of Jazz Standard, spends hit midtown’s heights from 6:30 p.m. to 8:30 p.m. at Founder’s Broadway and Wall Street, week much of his day listening to Hall, 180 Remsen St., Brooklyn. The will hold a concert featuring recordings of artists who want s a new yorker, genus event is free. For further details, call the Trinity Choir, the Trinity Baroque to perform at the West 27th Upper West Side,I took (718) 489-5404. Orchestra and the Trinity Wall Street Street club. He gets as many as the cloning of 5 Napkin Choristers, from 7:30 p.m. to 9:30 p.m. 100 submissions a month. Often NETWORKING RECEPTIONS Tickets are $20 for general seating, $10 Burger on Broadway at WEDNESDAY, FEBRUARY 24 for students and seniors and free for the music acts as background 84th as a personal bou- Visit the BROOKLYN CHAMBER OF children under 12. Proceeds will benefit noise, but “if it catches my quet. Not quite the tooth fairy leav- COMMERCE attention and my ears perk up, that A steven richter during its annual black the church’s Haitian relief effort. To ing an emerald under my pillow,but BEEF PIG-OUT: A bacon/cheddar burger history month celebration, from 6:30 p.m. purchase tickets, visit can inform my decision,” he says. boy, the old neighborhood is look- to 8:30 p.m. at Akwaaba Mansion, 347 www.trinitywallstreet.org/tickets. When Mr. Abramson has ing good. MacDonough St. Entrance is free for some downtime, he logs on to FRIDAY, FEBRUARY 26 I’m as much into cholesterol de- 5 NAPKIN BURGER members and $50 for nonmembers. For a site that details, call (718) 875-1000, ext. 127, or Head to the PUBLIC THEATER, 425 Wolfgang’s Vault, nial as anyone, so I allow myself a 2315 Broadway streams vintage concerts for burger once a week, usually bypass- (212) 333-4488 e-mail [email protected]. Lafayette St., at 8 p.m. to see Neighbors, www.fivenapkinburger.com a play about a family of black actors who free. “They’ve got a war chest of ing the potatoes for a double order of The FINANCIAL PLANNING ASSOCIATION threaten the reputation of their unbelievable music—from Led cole slaw.(Also,I’ve never met a mac OF NEW YORK will hold a networking neighborhood. The show is part of the Zeppelin to Miles Davis,” he says. ’n’ cheese I didn’t try, and I like to reception for non-financial services Public LAB series, in association with When he’s driving, he puts his pretend Caesar salad is a veggie.) CUISINE American industry professionals from 6 p.m. to the LAByrinth Theater Company, iPhone on Pandora.com, which The new,eagerly anticipated off- 8 p.m. at The Public House, 140 E. 41st which allows audiences to see scaled- lets listeners create their own radio shoot of Andy D’Amico’s Ninth PRICE RANGE Entrées $13.50- St., mezzanine. The reception is free. down productions of new works in Avenue burger joint is just a couple $19.75 For more information, contact development. The show runs through stations. Two favorite records these (212) 560-4421 or [email protected]. March 7, and tickets cost $10. To days: Prana Dance by trumpeter of blocks from his Nice Matin, SERVING Lunch and dinner where the chef perfected the grid- purchase tickets or to get more Tom Harrell and Mwaliko from seven days; brunch Sat.-Sun. SEMINARS information, visit www.publictheater.org. guitarist Lionel Loueke, who’ll dling and adornment of this 10- Join JOHN CRANT OF SELFRECRUITER.COM —maia blume ounce slab of linen-frazzling ground RESERVATIONS 30% reserva- perform at the club Feb. 25-28. tions, leaving room for walk-ins —VALERIE BLOCK chuck. A huddle of early birds gath- To view Crain’s full calendar listings, go to www.crainsnewyork.com/events ered outside on the first day of Feb- NOISE LEVEL Noisy ruary when the doors officially opened, and unfettered flocks have I can’t wait to return. been piling in ever since. I will definitely go back. The corner that used to be Ollie’s I’ll let them simmer awhile. glows:It’s dark inside,but spotlights NO HATS Never again. seem to be moving on red awnings above. “We tried to copy Ninth Av- enue exactly,” says D’Amico, greet- ing us. There are shiny white tiles, And yes, at last, the burgers.The meat hooks and butcher scales, lots four of us share two “originals” with of cozy booths. Wine and beer for Gruyère, caramelized onions and now, until the liquor license arrives. rosemary aioli,and a third that’s lay- Combustible proletarians, be ered with cheddar, bacon, a slice of warned: At $14.95, this is definitely raw onion, lettuce and tomato. I’m an upscale burger. But it comes with poised for the exuberance of perfec- fries or your choice of sides, so it’s tion I remember from downtown. also dinner. The place is already a But no. I’m in burger shock.The smash: a retreat for the recession, sprawling greaser is not seared, and where two can eat for $60. it’s barely warm,almost raw.Was the Of course, D’Amico & Co. hope kitchen spooked because it’s me and we’ll eat more than a burger and a I said “rare”in that firm voice I use to shake. That’s why there are entrées say “rare”? It’s the fifth night, and from $13.50 and up—fish and the house is packed. Is the griddle chips, steak frites, charred paprika- too crowded? I nibble the bacon,the spiced salmon—and starters from a tater tots and the splendid house pop-eats hit parade, like chicken fries—better than the soggier Tus- wings, taquitos, chicken noodle can fries,with herbs,parsley and the soup with matzo balls. extra saltiness of Parmesan. There’s a bow to sushi, too. The Two spoonfuls of our shared spicy tuna-and-cucumber maki roll brownie sundae with vanilla ice cream topped with tuna and avocado, and espresso caramel is just enough enough for four, amuses my bouche sweetness to restore my good mood. as an opening act. And I admire the “Hold the peanuts,” I’d requested, crisp perfection of cornmeal-crust- but here they are, lightly salted—an ed onion rings, stacked high and inspired touch, it turns out. salted with devil-may-care brio. Of course, I’ll be back. I might We share the mac and cheese: wait a month for my arteries to re- plump shells floating in molten cover. By then, the griddle will be cheddar and Gruyère and leek cream, smoking hot, and I’ll expect the 5 with a nice crunch of Parmesan on Napkin Burger of my dreams. .EW9ORKs"OSTONs(ARTFORDs0ORTLAND top. “It’s too rich,” one of our com- panions protests.Of course it is.But Copyright © 2010 by Gael Greene. even if I die tomorrow, I’ll finish it. Syndicated by www.insatiable-critic.com

February 15, 2010 | Crain’s New York Business | 27 CN013490 2/5/10 3:30 PM Page 1

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