20141117-NEWS--0001-NAT-CCI-CN_-- 11/14/20147:20PMPage1

0 71486 01068 5 46 CRAIN’S composite: buck ennis/istock VOL. XXX,NO.46 but Cuomohasown of$5.1Bpieces pot, groupsseek Interest ideas on spending it ideas onspending A surplus of attention asline formsforstate’sA surplusofattention extracash NEWSPAPER described theirmissives. judge emails, asastate andmiserable” via “cursey Elizabeth Eltingviciouslyfought PhilipShaweand TransPerfect’s CONFOUNDED CO-FOUNDERS: CRAIN’S WWW.CRAINSNEWYORK.COM THE LIST E OKBUSINESS YORK NEW Tory Burch, Bloomberg LPand148Tory Burch,Bloomberg biglocalbusinesses inprivatehands other and alreadyinterest lobbyists Cuomo’sGov.Andrew re-election, of onthenews dry The inkisbarely BY ANDREWJ.HAWKINS NY AREA’S LARGESTPRIVATELY HELDCOMPANIES Warning: multiple F-bombs ahead Warning: multipleF-bombs rmAeia ilnst a-at Itdoessowith thehelpof3,700 to Wal-Mart. Airlines from American ranging clients translatesdocumentsformore than300corporate fect, theircompany,TransPer-got engagedandbuiltaglobalbusiness.Today, from aNew Yorklaunched atranslationservice dormroom, University young two entrepreneurs whomore than20yearsago Shawe, and Philip Few Elting feltbetterthan thatofElizabeth feel-goodbusinessstories TransPerfect Inside, atwar. twoco-founders Outside, acorporatesuccess. obektedalc,adahaigi ceue o o.18. forNov. isscheduled andahearing to break thedeadlock, mlye n3 onre,and last yeargeneratedmore than$400 employees in30countries, the other thrown out of the company. The parties haveaskedajudge Theparties the otherthrown outofthecompany. ing each other for malfeasance and mismanagement, and each wants andeach andmismanagement, otherformalfeasance ing each million in revenue.It isaregular in million inrevenue.It going through a vicious and public commercial divorce.They are su- going through aviciousandpubliccommercial divorce.They aeeti 97adsltonrhpo hi uies5-0 are gagement in1997andsplitownership oftheir business50-50, raslretpiaeyhl opne,ti erlniga o 59. thisyearlandingatNo. area’s heldcompanies, largestprivately u o,M.Etn n r hw,whobroke off theiren- Shawe, EltingandMr. Ms. But now, itan Transportation hasa Authority Metropol- homeless programs.The want hundreds ofmillions for nonprofits Social-service forschools. billions want lobbyists Education for apiece. clamoring institutions. settlements withfinancial comesfrom most ofwhich dented $5.1billionbudgetwindfall, groups are liningupforhandouts. Storm vroe tses is itseems, Everyone, At stakeisthestate’s unprece- BY AARON ELSTEIN BY AARON The Crain’s See TRANSPERFECT onPage25 See TRANSPERFECT ranking oftheNew York state schoolaid state wants addedto education lobby AMOUNT $2B ® that lem.” (The surplus hassincegrown.) surplus (The lem.” prob- going tobetheworstpolitical Idon’t know whichis lion surplus. Business CouncilofNew York plan. holeinitscapital $15 billion In a September speech before speech the In aSeptember “This yearwehavea$4bil- “This thegovernor said. close,” washardto which deficit, Ihada$10billion started, surplus. wise abouttheunexpected Cuomocracked Mr. State, Fu er g,whenI “Four yearsago, PAGE 3 scene Brooklyn sweeten Choco-preneurs BOROUGHS IN THE PAGE 14 an infrastructure bank topayfor an infrastructure sumtofund to useanundisclosed alsoplans broadband expansion.He and$500millionfor services, ments toconsolidateandshare govern- toencouragelocal million $500 state economicdevelopment, $1.5billionforup- including Cuomohasa own, Mr. multibillion-dollar wishlistofhis penses. ments ratherthanonrecurringex- “one-shot”invest- ey “prudently”on He promised tospendthemon- NOVEMBER 17-23, 2014 PRICE:$3.00 November 17,2014 November 17,2014 November 17,2014 See SURPLUSonPage31

mike grippi 20141117-NEWS--0002-NAT-CCI-CN_-- 11/14/2014 7:21 PM Page 1

EDITOR’S NOTE

Story time FYICRAINSNEWYORK.COM As the old journalism joke goes, I have a face for radio and a voice for Is new policy best for those print. Not so my boss, Crain’s New York Business Publisher Jill Kaplan, caught with pot? who hosts so many of our Crain’s either Mayor Bill de Blasio nor public events with the ease and Police Commissioner Bill Bratton informed nature of a morning-TV favor legalizing the recreational use regular.This week, Jill becomes an N Glenn Coleman of marijuana, but in announcing last week actual TV host with the premiere that possession of up to 25 grams of the of Crain’s New York Stories at 9 p.m. drug would yield only a summons, the Monday on the city-owned television channel NYC two removed a wedge dividing law enforcement from Life. (Episodes also air Saturdays at 5 p.m. and the communities of color they police. ¶ Or so it seemed.The new policy, newscom Sundays at 9:30 a.m.) The show offers what Jill calls effective Nov. 19, means individuals caught with (but not smoking) up to the equivalent of 60 “inspirational stories of extraordinary entrepreneurs joints would no longer be handcuffed, fingerprinted and thrown in jail. Some prosecutors had in the five boroughs who have showed resiliency, already said they would not prosecute the crimes, considered low-level and disproportionately determination and perseverance.” Stories like Liz affecting communities of color.Through the first eight months of 2014, 86% of those arrested Smith-Breslin and Jeanne Jamin, co-owners of Blue were black or Hispanic, according to the Marijuana Arrest Research Project. ¶ The de Blasio Bungalow in Rockaway Park, Queens.They were administration had been signaling its intention to shift marijuana policy. Mr. Bratton even going to become sisters-in-law until Liz’s boyfriend, brandished a bag of oregano to illustrate how big a stash was and joked: “All I can think of right a Cantor Fitzgerald employee who was Jeanne’s now is pizza.” ¶ But the mayor’s allies say the policy does not go far enough. City Council brother, died on 9/11. Liz and Jeanne came together Speaker Melissa Mark-Viverito said she supports full legalization. Brooklyn District Attorney to open their business and now advocate on behalf of Kenneth Thompson voiced concerns that violators given summonses to court would not have access the Rockaway community, still battered in so many to a lawyer. Others said the race of those summoned would not be tracked, making it difficult to ways from Superstorm Sandy.There’s also gauge the policy’s impact on the communities it is intended to help. —andrew j. hawkins Colombia-born Eladia Causil-Rodriguez, a mom in Brooklyn who opened Eladia’s Kids as a safe place NAMING RIGHTS FOR SALE. Lincoln BIKE. Bicyclists talking or texting on for pre-K children after she had a baby-sitting scare. Center is seeking a donor to help with their cellphones could be fined or HOORAY! She now owns several such centers. And Sotiris its $500 million planned renovation of forced to take classes if a bill intro- FIREFIGHTERS rescued two window Avery Fisher Hall. Naming rights for duced by Brooklyn Councilman Mark washers trapped on a scaffold dangling Constantinou, who came here as a student from the theater that is home to the New Treyger advances. Accidents could outside the 69th floor of 1 World Trade Center. Cyprus, worked in a carpet store to pay his bills, and York Philharmonic could fetch $100 trigger a $50 fine. … COMMUTE COST started his own venture. Mr. Constantinou’s Carpet million or more.… LIGHT UP THE SUB- HIKE. The Metropolitan Transporta- Time will soon become the second-largest retailer WAY. The $1.4 billion Fulton Center tion Authority plans to increase the subway hub—billed as the Grand price for monthly subway cards by $4, and distributor of the product in the city. As Jill tells Central of lower Manhattan— to $116,next year.Other proposals in- me: “These individuals and others whose stories we opened after a decade of planning and clude hiking subway and bus fares 25 share are connected by a common bond—their love construction.It is topped with an ocu- cents, to $2.75, and reducing bonuses for New York City and all that it offers.They are lus,53 feet in diameter,that sends light that come from buying multiple-fare below street level. About 300,000 cards. E-ZPass rates could also in- emblematic of what you can achieve through good commuters are expected to travel crease 4%. … EBOLA-FREE NYC. Dr. OY VEY! times and bad.They are inspirational, they are through the station each day, on nine Craig Spencer,the first New Yorker to driven, and they are our Crain’s New York Stories.” subway lines.… BURY- test positive for Ebo- MAYOR BILL DE BLASIO arrived 20 ING THE HACHETTE. minutes late for a memorial for the ‘Perfick. Lets la,was declared free of passengers of American Airlines Flight After a seven-month the virus and released 587, missing the moment of silence. battle,Hachette Book do this … lets from Bellevue Hospi- THIS WEEK IN CRAIN’S Group reached a mul- tal Center. … tiyear deal with Ama- double team RECORD SETTER. IN THE BOROUGHS------3 zon that will allow it to them’ Christie’s raised an set the prices of its IN THE MARKETS------4 —A chat-room auction-house record digital books. An conversation between of $852.9 million THE INSIDER ------6 Amazon executive foreign-exchange traders, from 80 contempo- BUSINESS PEOPLE ------8 said that “financial in- whose banks agreed to pay rary art pieces led by

centives” would en- $4.3 billion to settle charges Andy Warhol’s paint- ap images REAL ESTATE------10 sure good deals for that they manipulated ing of Elvis Presley, NOW OPINION ------12 customers. … currency markets which sold for $82 HIRING. New York million. … IPO 86. Mr. Lebenthal, who still went to GREG DAVID------13 City’s private-sector WATCH. Small- work every day, touted the benefits of THE LIST ------14 employment jumped 5.4% last quar- business lender OnDeck filed for an municipal bonds in TV ads that had ter,the biggest quarterly increase in 24 initial public offering valued at up to him standing on a bridge,riding a sub- CLASSIFIEDS ------SMALL BUSINESS 26 years. Most of that growth was con- $150 million. ... IN MEMORIAM. Jim way car or popping out of a manhole Telecom contractor Paul FOR THE RECORD------29 centrated in low-wage positions in Lebenthal, one of Wall Street’s most to remind viewers that public works Vieira runs one of the sectors including education and high-profile salesmen, passed away were “built by bonds.” NEW YORK, NEW YORK ------33 relatively few small firms in health services. … DON’T TEXT AND Nov. 14 from a heart attack. He was —emily laermer the city that are expanding. P. 7 SOURCE BREAKFAST------34 (SEE PAGE 31) CORRECTIONS STORIES TO WATCH THIS WEEK vol.xxx,no.46,november 17,2014—Crain’s New York Business (ISSN 8756-789x) is published weekly,except for double issues the weeks of June 23,July 7,July 21,Aug.4,Aug.18 and Dec. 22, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, N.Y., and additional mailing offices. Postmaster: Send address changes to: Nov. 17: Medieval Nov. 19: City Nov. 20: Sony Nov. 21: Senate Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, manuscripts related Council hearing on launches panel begins probe MI 48207-2912. for subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one to St. Francis of bill regulating PlayStation of relationship year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2014 by Crain Communications Inc. All rights reserved. Assisi make their costumed characters streaming service between NY Fed U.S. debut in Times Square. in New York and Wall Street

2 | Crain’s New York Business | November 17, 2014 20141117-NEWS--0003-NAT-CCI-CN_-- 11/14/2014 7:06 PM Page 1

IN THE BOROUGHS BROOKLYN ‘Chocolate district’ in the making New wave of sweets sellers putting fresh stamp on old staple

BY HILARY POTKEWITZ NEAR 34TH STREET AND ICK: Local BID chief When aspiring chocolatier Jacques Dan Biederman Torres opened his small kitchen in said the size and Brooklyn’s Dumbo in 2000, he was scope of sidewalk lauded as a bold pioneer. Today, a carts are “out of growing number of his peers are fol- control.” lowing in Mr. Torres’ path. To date, at least a half-dozen small-batch chocolate makers have set up their own roasting,molding or processing operations in a stretch of western Brooklyn extending from Hates, hates,hates food carts Williamsburg down to Sunset Park. To Mr.Torres,55,the new wave of choco-preneurs hitting the borough

buck ennis makes perfect sense. He noted that there’s still plenty of inexpensive in- Their presence is giving Dan Biederman of power for help. During the summer, he met dustrial space—including the Dan Biederman insists indigestion. with New York City Police Commissioner Bill 40,000-square-foot site in the Brook- The longtime president of the 34th Street Bratton, whom he described as having “listened lyn Army Terminal where he opened midtown monstrosities Partnership and Bryant Park Management carefully to our case.” his newest kitchen in 2013.But Kings Corp., two business improvement districts, de- He’s even offered design solutions for the County’s culture is just as important. are hurting others’ biz scribed the carts as eyesores in the neighbor- carts that, he claims, have become gargantuan, “Brooklyn is the place where hoods he has spent the better part of three taking up too much real estate on the sidewalks things are being made,” he said. BY LISA FICKENSCHER decades beautifying. He said his districts are a for pedestrians to navigate around. “We’re more artisanal than Man- magnet for the vendors. The problem as he sees it—and he represents hattan or Queens.” The sidewalks around Macy’s and Bryant Park After chasing drug dealers and graffiti van- some large stakeholders, including Vornado, True to that trend, the choco- are home to dozens of food carts with large um- dals out of Bryant Park and helping to turn it into Madison Square Garden and Macy’s—is the arrivistes are playing up their brellas, flashing LED signs and loud generators, a city treasure, Mr. Biederman is on a crusade to growing numbers of carts clogging up the side- borough in their marketing, and are whose vendors sell a variety of consumables, curb street vendors there and around Herald walks, particularly during evening rush hours. focusing on authenticity, bold fla- from hot dogs and pretzels to Halal cuisine. Square. He is appealing to the highest echelons See PUSHCART on Page 32 See CHOCOLATE on Page 28 Estée Lauder looking for more STATS AND THE CITY by Nicholas Wells OPEN SEASON: About 350,000 New Yorkers are expected to buy private insurance through the state’s health exchange, which opened for its second enrollment than just cosmetic changes season Nov. 15. Nearly 1 million enrolled through the exchange last year. AVERAGE INCREASE in premiums for individuals and Company hopes to Lauder’s chief executive, Fabrizio pany acquired as mere fledglings in 4.5%families in the second year of the New York State of Health Freda, on a recent conference call. the 1990s. exchange; deductibles and co-pays will remain the same perk up slow sales “We are confident we can help these Analysts expect Estée Lauder’s brands grow and prosper.” new buying spree to continue, even NUMBER OF with purchases of In the process, he is betting they as the company simultaneously ex- $1,095.35 WORKERS at the MONTHLY PREMIUM for the city’s 839state’s call center during open can help Estée Lauder—which pands organically,launching its own priciest plan for individuals on the small beauty brands products in popular categories like enrollment, 39% more state exchange, sold by than the previous men’s grooming and facial masks. Oxford-OHP, down BY ADRIANNE PASQUARELLI ‘They are revving Taken together, such steps would enrollment 9.3% from period help Mr. Freda meet his goal of 6% last After a four-year dry spell—its up the M&A sales growth for the fiscal year end- year longest in nearly two decades— ing in June 2015. The company de- Estée Lauder Cos. is back on the machine a little clined to comment for this story. prowl. In the past month alone, the bit now’ “They are revving up the M&A cosmetics giant has snapped up machine a little bit now,” said Ali $4M three small, growing beauty brands: Dibadj, an analyst with Sanford C. ADVERTISING BUDGET cult-favorite fragrance company Le Bernstein & Co. for North Shore-LIJ’s Labo, high-end skin-care label The timing is no accident. Sales CareConnect NUMBER OF Rodin Olio Lusso and,less than two growth from Estée Lauder’s exist- Insurance Co. 10,575PAGES in the weeks ago, Editions de Parfums pulled in $11 billion in sales last ing portfolio of more than two to enroll plan New York State of Health’s 2015 Frédéric Malle. year—grow and prosper as well. dozen labels of skin care, makeup members this year plan-comparison guide “We are actively seeding and Though the brands occupy a narrow and fragrance brands has slowed re- Sources: NYS Department of Health, Associated Press, North Shore-LIJ CareConnect nurturing the next generation, with market niche,each has the potential cently. For the three months ended istockphoto an eye to [creating] the next big to become a blockbuster on par with Sept. 30, the company generated ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY brands of the future,” said Estée MAC and Aveda, which the com- See ESTÉE LAUDER on Page 32

November 17, 2014 | Crain’s New York Business | 3 20141117-NEWS--0004-NAT-CCI-CN_-- 11/14/2014 7:07 PM Page 1

SEALED BID AUCTION IN THE Suggested Opening Bid: MARKETS $4,000,000 by Aaron Elstein 573 FULLY PERMITTED ACRES IN COSTA RICA Hacienda Matapalo on the Southern Pacific Coast • Master Plan approved for 150 residential home sites & over 900 condo units, with 116 lots in Phase 1 • Significant infrastructure already in place SEALED BIDS DUE BY DECEMBER 8, 2014

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Bidders may obtain detailed information and bid package documents from our web site.

Howard L. Michaels Chairman, [email protected], 212.716.5607 No magic act, alas: Kevin Swill, [email protected], 917-332-2057 Cameron Green, [email protected], 917.332.2056 Bank profits vanish NEW YORK · PALM BEACH · LONDON · MADRID · DUBAI · TEL AVIV · ATHENS he first decade of the 21st century was Wall Street’s golden era—before, of course, all came tumbling UPCOMING SPECIAL FEATURES down. Between 2001 and 2010, banks and brokerages If you are looking to reach the New York business community, don’t Tcollectively generated $152 billion in profits miss these upcoming special sections from Crain’s Custom Studio. , according to the Securities Industry and Financial Markets Association. The Giving Guide December 1, 2014 (Close date: 11/20/14) That’s even taking into account the industry’s $25 billion in Corporate Profiles in Accounting losses in 2008, the nadir of the financial crisis. And it’s a net December 22, 2014 (Close date: 12/04/14) figure, meaning it’s what was left after bonuses were paid. Executive Health and Wellness It also turns out this seeming mountain of gold was December 22, 2014 For more information, please contact Trish Henry actually one gigantic mirage. Every dime, and then some, (Close date: 12/04/14) at (212) 210-0711 or [email protected]. that Wall Street coined last decade has gone out the window in the past few years to pay government regulators and other aggrieved parties. With last week’s $4.2 billion settlement

concerning abuses in the foreign- John McDonald, a banking analyst exchange market, large banks have at Sanford C.Bernstein & Co.,took now shelled out $184 billion in fines and a stab last week at what JPMorgan penalties since 2009, according to a Chase’s future might look like,and it report last week by Keefe Bruyette isn’t especially pretty. & Woods. For the foreseeable future, he Although there remain a few said, JPMorgan faces headwinds as more cases to resolve, analysts be- regulators require it to hold more lieve most penalties for last decade’s capital—that is to say, operate with shenanigans have been paid. Now less borrowed money—which will that the dust is starting to settle,the diminish returns. Legal expenses question is, how much of the prof- should decline, but he still expects it that banks are earning today can the bank to incur $1.5 billion worth they be reasonably expected to part of such costs next year and $800 mil- with in the future because of bad lion in 2016.The outlook for revenue deeds we don’t yet know about? growth? “Still challenging,” he said. Bank management teams are Add it all up, and Mr. McDon- promising to reform their cultures. ald expects JPMorgan’s earnings But it’s hard to take such assurances per share will grow by 6% next year seriously after we learned last week and 9% in 2016. That would be that people inside these institutions pretty impressive, although noth- were manipulating currency markets ing like JPMorgan’s 92% earnings when the banks had already been growth in 2005 and 70% in 2006. alerted to government investigations Of course, we now know that a into the rigging of the London inter- healthy slug of those profits would bank offered rate, or LIBOR. eventually go out the window. Ⅲ

DECLINE in the value of Carl Icahn’s $40Mstake in Hertz Global Holdings on Friday, after the car-rental company reported further accounting problems. Mr. Icahn is Hertz’s largest stockholder, with shares worth about

bloomberg news $840 million. 25 Broadway More than 250,000 RSF leased in 2014 /DVWUHPDLQLQJRIÀFHÁRRU 56) DQG  86) RIUHWDLOVSDFHVWLOODYDLODEOH

Here’s to the Downtown Renaissance The Ownership of 25 Broadway thanks our leasing team at CBRE, Steve Siegel, Bruce Surry, Gary Kamenetsky and Richard Levine, for their exceptional efforts in leasing to such high-quality tenants.

Teach For America WeWork Cipriani USA represented by Joan Meixner, represented by Tim Dempsey, represented by Barry Goodman Mary Ann Tighe and Barry Finkelman and of Newmark Grubb Knight Frank Gregory Tosko of CBRE Derrick Ades of CBRE

For more information: Steve Siegel Bruce Surry Gary Kamenetsky Richard Levine Chairman, Global Brokerage Executive Vice President Senior Vice President Senior Vice President T +1 212 984 8100 T +1 212 618 7044 T +1 212 984 8134 T +1 212 618 7060 [email protected] [email protected] [email protected] [email protected] 20141117-NEWS--0006-NAT-CCI-CN_-- 11/14/2014 7:08 PM Page 1 THE We congratulate our client INSIDER by Chris Bragg

and its subsidiary

CBL & Associates Limited Partnership

on their follow-on $300 million offering istockphoto of investment-grade 4.60% Senior Notes City employees’ upheaval begins n response to a court ruling and a state law passed this year, the de Blasio administration has quietly released a Iproposal to put more than 7,000 municipal jobs up for grabs by the end of 2016.The action threatens to disrupt city agencies—but it would still fall well short of getting the government into compliance. The 2007 court decision compels the city to purge thousands of “provisional” employees who never took constitutionally mandated civil-service exams for their Want more info on our donedeals? Scan the QR Code with your smart phone. positions. City officials, who would rather not lose so many experienced middle managers at once, have been trying to buy time to comply.The state law gives the city through 2016.

But the de Blasio plan, released Labor leaders who felt the in October,would leave more than Bloomberg administration pro- 14,000 provisional employees on tected provisional employees by not POLITCAL JUNKIE? the payroll—far more than the 5% giving exams have been encouraged of competitive job titles that they by the new administration’s efforts. can hold—suggesting the city will Exam-based hires enjoy civil-serv- Sign up for our free Morning Insider seek another extension from Al- ice protections that provisional em- bany. The number ultimately ployees lack. for news and analysis on the needs to be slashed to about 9,000. Still,Stuart Eber,president of the The plan would most affect nonunion New York City Man- 2,500 administrative staff analysts, agerial Employees Association, political plays and players 1,200 occupational therapists at expressed concern that some 2,000 the Department of Education and of his workers hold titles for which affecting New York’s economy. 800 administrative managers. Ex- no tests have been scheduled.That

ams for those positions would be includes such classifications as ad- held in 2015, according to the pro- ministrative engineer, accountant posal, which needs state Civil and architect. Service Commission approval. “The provisionals have been Provisional workers are pur- there for 15 or 20 years, in many portedly temporary but some have cases,” Mr. Eber said. “This prob- been on the payroll for years. The lem wouldn’t exist if the prior ad- state constitution dictates that gov- ministration had given the exams it ernment appointments be based on was supposed to.” “merit and fitness,” and for many The de Blasio administration jobs that’s determined by exam proposal would also reclassify 1,600 scores. Only the top three scorers positions so exams would no longer can be interviewed for some posts. apply to them. The city says hun- “The process will take time,and dreds of titles have fewer than 20 we expect to retain the city’s best employees, making tests financially and brightest,” said Stacey Cumber- impractical. Labor interests prefer batch, commissioner of the De- test-based hiring, which was de- partment of Citywide Administra- signed to stop political patronage. tive Services, which conducts the In 2007, nearly 37,000 provi- exams, in an October statement. sional workers occupied more than But the exams measure knowledge 19% of the jobs that were supposed FREE! of agency rules and procedures,not to be filled based on exam scores. managerial skills, temperament As of August, about 23,000 re- and experience. mained. Ⅲ

QUOTED: ‘I fundamentally reject the notion that being pro-tenant, Morning Insider pro-union, pro-affordability means being anti-business’ —Public Advocate Letitia James, addressing ABNY members ap images www.crainsnewyork.com/newsletters 20141117-NEWS--0007-NAT-CCI-CN_-- 11/14/2014 1:48 PM Page 1

SMALL BUSINESS Small firms thrive but aren’t expanding

Some may not want nesses, and is calling on the de Bla- from 2000 to 2012. Brooklyn has ‘This is my niche. I’m not going to sio administration to help more of the greatest number: 72,503. conquer the world. I’m not going to the hassles that come the tiny firms grow. What’s happening in New York be a million-dollar copywriter. I’m “From our perspective, the really reflects national trends. The U.S. just going to have this good career with growth; others key opportunity Small Business Administration re- that supports me.’ ” need a helping hand for New York is leased data earlier this year that to make sure 58% showed that nearly three-quarters ‘Huge boost’ for NYC more of these INCREASE of small businesses create jobs only Mr.Bowles said that even if some BY ELAINE POFELDT in Brooklyn’s very small busi- self-employed for the owners—and the number of microbusinesses don’t aim to grow, nesses are able to population, 2000 such firms has been growing since it’s still worth lending more support aul Vieira beat the odds expand into to 2013 2000. Meanwhile, the number of to the ones that do. “A number of Source: Center for an at IDL Communica- modestly larger Urban Future job-creating firms has been flat. them have real potential for tions & Electric,a Staten businesses,” said “The majority of small business- growth,”he said.“If we can get more GROWTH-MINDED: Paul Vieira Island contractor in Jonathan Bowles, executive director es and independent workers don’t of these four-employee companies runs one of a relatively small pool the telecommunications of the center. The report was fund- have growth as a primary objective,” to be 10- or 20-employee compa- of firms in New York City that are field. He’s grown the firm to 25 ed by Citi Community Develop- said Steve King, a partner in Emer- nies, that’s a huge boost for New scaling up in a significant way.

P buck ennis employees and $10 million in annu- ment, an arm of Citigroup that fo- gent Research, a company in York City’s economy.” al revenue since 2001. “When you cuses on financial inclusion and Lafayette,Calif.,that studies the in- The center’s report urges the de start a business,you always think the economic empowerment. dependent workforce. “They’re do- Blasio administration to focus more in annual revenue was receiving two sky is the limit,” he said. ing it to create a job for themselves of the programs run by the NYC grants—one for $25,000 and a more That makes him a rarity in a city More freelancers and a lifestyle for themselves.” If Department of Small Business recent one for $100,000—through where many small businesses never Whether many of these tiny they have to hire, many turn to con- Services on helping existing firms the city’s Economic Development grow into job creators.The number firms want to grow, however, is a tractors, he added. scale up. Many current programs Corp. She has used the first cash in- of firms with up to four employees subject of some debate. New York is Freelance copywriter Debbie encourage the launching of startups, fusion to formalize her training pro- had a net gain of 31,421 jobs be- home to many freelancers whose Feldstein is among these solo oper- the report notes. Entrepreneurs say gram and invest in technology. tween 2000 and 2013, the Center main ambition is to create a job for ators.She made a conscious decision access to funding, in particular, is “It was just a fantastic way to help for an Urban Future found in recent themselves—not necessarily to not to hire employees after a long critical to growth. a small business jump-start itself,” research. In comparison, firms with build the next Facebook. Their career running a nonprofit. She Deb Windsor, who is profiled in Ms. Windsor said. Ⅲ more than 500 employees saw a net numbers are rising, according to an- doesn’t want to manage them. the report, founded Construc- loss of 5,022 positions. other recent study by the center. It “I think that’s why so many peo- tionKids, an education workshop in To sign up for Crain’s The think tank concluded that found that New York is home to ple who are freelancers seem happi- Brooklyn,in 2008.What helped her SMALL BUSINESS newsletter, go to “too few” small firms are expanding 247,025 self-employed workers, er than other people,”said Ms.Feld- expand to 60 people during the peak www.crainsnewyork.com/smallbiz. into medium-size and large busi- with their ranks increasing 31% stein. “They’ve kind of decided, summer months and hit $1 million

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November 17, 2014 | Crain’s New York Business | 7 20141117-NEWS--0008-NAT-CCI-CN_-- 11/14/2014 2:15 PM Page 1

BUSINESS 470 Approximate number of city health workers monitoring or on call for Ebola PEOPLE Source: NYC Dept. of Health and Mental Hygiene

EXECUTIVE MOVES

Asia Society Policy Institute: Kevin Rudd, 57, joined the institute as president. He was previously a senior fellow at the Belfer Center for Science and International Affairs at Harvard University. He also served as the prime minister of Australia. Pace: Cara Faske, 51, was promoted to president at the advertising and branding agency. She was previously president at Cara Martin, a division of Pace Advertising. BankMobile: Warren Taylor, 56, joined the division of Customers Bank as president. He was previously executive vice president and president of community banking at Customers Bank. Engel & Völkers North America: Jim Ramsay, 46, joined the luxury real estate company as chief operating officer. He was previously senior vice president of franchise sales and operations at Better Homes and Gardens Real Estate. Pereira & O’Dell: Matt Herrmann,41, joined the advertising agency as chief strategy officer. He was previously PINT OF VIEW: Bruce director of strategy at BBDO. Caulfield decided National Basketball to become an Association: entrepreneur Malcolm Turner,43, while working joined as president at a newsstand of the NBA during the wee hours. Development League, effective Nov. 12. He was

buck ennis previously managing director of the golf division GOTHAM GIGS at Wasserman Media Group. Helmsley Spear: John T. Murray,56, joined the real estate firm as director of hospitality capital markets. He was previously the managing member at the Oak Park Group. TCW Group: William Lloyd, 54, joined Next stop, Grand Central? the asset management firm as managing director and head of alternatives marketing. He was Penn Station pub owner sets sights on other rail hub previously a managing director at VelocityShares. Joseph Quinn, 53, joined as senior vice When Bruce Caulfield was a student at Hunter He opened his first business there just before the president of alternatives marketing. Bruce He was previously head of marketing College, studying to be a history teacher, he never stock-market crash in October 1987. He and his at Marinus Capital Advisors. Caulfield’s imagined that he’d get so sidetracked by working two partners, brothers Michael and Patrick Caerus Group: Leo Tsimmer, 47, joined the real estate investment, the graveyard shift at an outdoor newsstand on O’Brien, sank $1.2 million into Le Café, a 1,000- development and management firm as ‘real slice East 53rd Street. ¶ “It was a real slice of New York square-foot eatery that sold muffins, sandwiches senior managing partner. He was previously a managing director at of New City, watching everything change at 3:30 a.m., and salads. Mr. Caulfield even took over the Sleepy Hudson. when people would leave bars to go home or baking, arriving at the café at 4 a.m. ¶ He sold the Shen Milsom & Wilke: Cherise Poulin, York City’ others would be going to work,” he said. ¶ The business after 15 years to open an Irish pub like 41, joined the consulting and technology design firm as director of entrepreneurial bug bit him some 40 years ago. his grandfather’s on Second Avenue, which had health care business development. She Much to his father’s disappointment, Mr. catered to Irish sandhogs building the subways. was previously director of health care marketing at Perkins Eastman Caulfield, 59, quit college to earn an equity stake Tracks Raw Bar & Grill opened in the station in Architects. in the newsstand—where Rock Hudson would 2003. ¶ In August, Mr. Caulfield ventured Adara: Anna regularly buy his cigarettes—and eventually outside the station to open Harp Raw Bar & Chalmers,38, joined the became an owner of another newsstand in the Grill, at 729 Third Ave., as part of his quest for marketing and lobby of the Daily News Building at 220 E. 42nd retail space in Grand Central Terminal, where he insights platform as head of marketing, St. ¶ For the past 27 years, Mr. Caulfield has has bid on locations including in Vanderbilt Hall. Americas. She was operated businesses in Penn Station, including a “The MTA told me to keep trying,” Mr. Caulfield previously senior vice president of wine store and, just outside the station, a 155- said of his landlord. sales development at SocialVibe. square-foot burger joint, which closed in 2005. ¶ —lisa fickenscher Smart Devine: Chris Clabby, 49, joined

8 | Crain’s New York Business | November 17, 2014 20141117-NEWS--0009-NAT-CCI-CN_-- 11/14/2014 3:13 PM Page 1

the accounting, advisory, tax, forensic development at the mobile and social- investigations group. He continues as a accounting and litigation services firm gaming ad platform. He was previously partner. CORPORATE LADDER as managing director, leader of the New vice president of business development. Fried Frank Harris Shriver & Jacobson: York market segment and co-leader of Lo Noroña, 32, joined as vice president of Christopher Roman, 44, joined the law the national business-performance and business development. He was previously firm as a partner. He was previously a SHE TAKES WING AT NYC AUDUBON profit-improvement practice. He was vice president of business development at partner at King & Spalding. previously leading managing director of Appsavvy. Schiff Hardin: James Frankel, 68, joined KATHRYN HEINTZ, appointed last month as New York City Audubon’s executive tax and private-client services at CBIZ. Yieldbot: Liane Pierce, 29, joined the ad- the law firm as a partner. He was director, grew up in Maryland, where she kept a pair of binoculars and a copy Duff & Phelps: Laca technology company as vice president of previously a partner at Arent Fox. of A Field Guide to the Birds by her window. Sidley Austin: Wong-Hammond,37, client services. She was previously vice Geoffrey Aronow, 59, joined “My life’s passion is connecting people to nature,” said Ms. Heintz, 49, who joined the global president of client services at Spongecell. the law firm as a partner. He was valuation and corporate Grant Thornton: Ray Werth, 42, was previously general counsel at the U.S. most recently served as director of principal gifts at the Wildlife Conservation finance adviser as promoted to tax partner at the audit, tax Securities and Exchange Commission. Society. She also was director of development at Wave Hill, the public garden in managing director of and advisory firm. He was previously a Latham & Watkins: Nathan Ajiashvili,33, the Bronx. the corporate finance tax senior manager. was promoted to partner at the global law Her mission at NYC Audubon, an affiliated chapter of the National Audubon practice. She was Laurie Shen, 44, was promoted to firm. He was previously an associate. Society, is to build its audience and boost scientific inquiry related to birds and previously leader of the business advisory services managing Stelios G. Saffos, 33, was promoted to their urban habitats. It also works to protect the city’s marshes and wetlands, health care real estate practice at director. She was previously a director. partner. He was previously an associate. Raymond James. Kristina Vieni, 33, was promoted to Alfred Y. Xue, 33, was promoted to which are key to coastal resiliency—as underscored by Superstorm Sandy. Tag Creative: Alexandra Press, 30, joined business advisory services managing partner. He was previously an associate. Ms. Heintz wants to develop education programs rooted in science and the boutique advertising agency as director. She was previously a senior Matthew J. Chase, 34, was promoted to research. To do that, she’ll need more philanthropic director of digital business development. manager. counsel. He was previously an associate. support for the organization, which has an She was previously a manager at Maker Margolin Winer & Ryan K. deFord, 39, was promoted to operating budget of about Studios. Evens: Susan counsel. He was previously an associate. $1 million. Edelman: William Raveis: Deidre H. Campbell,48,was Harrington, 56, joined Maria Wall, 55, joined the “Our big weakness has been the promoted to global chair of the financial- the accounting, real estate company as a licensed real services sector at the public-relations auditing, tax planning estate salesperson. She was previously a inability to raise money on a firm. She was previously executive vice and advisory services vice president at the Corcoran Group. consistent basis,” said Harry president. firm as M&A tax Douglas Elliman Real Estate: Andrew Maas, president of the Barker: Robert Kellner, 44, joined the partner. She was Azoulay, 46, joined the residential organization’s board of advertising and interactive agency as previously a senior tax brokerage as a salesperson. He was trustees. He said Ms. Heintz’s senior vice president of strategy. He was partner at Deloitte. previously a salesperson at Town fundraising prowess, and her previously senior vice president of Kramer Levin Naftalis & Frankel: Norman Residential. experience working with business development at Skyline Genesis C. Simon, 43, was promoted to co-chair —nazish dholakia Event Marketing. of the advertising litigation group at the smaller organizations, made Style Coalition: Anita Maiella, 44, joined law firm. He continues as a partner. her the obvious pick. the marketing platform as senior vice Paul H. Schoeman, 45, was promoted to EXECUTIVE PROMOTIONS “I want NYC to be president of sales and marketing. She was co-chair of the white-collar defense and The fastest way to get an announcement into known for its green previously vice president of national sales investigations group. He continues as a Crain’s is to submit online. Fill out the form space as much as it at YouBeauty. partner. at www.crainsnewyork.com/section/ MediaBrix: Art Santos, 43, was promoted Eric A.Tirschwell, 47, was promoted to executive_moves. The Executive Moves column is for business, diversity and art to senior vice president of business co-chair of the white-collar defense and is also available online. ,” rodgers david

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November 17, 2014 | Crain’s New York Business | 9 20141117-NEWS--0010-NAT-CCI-CN_-- 11/14/2014 3:26 PM Page 1

REAL ESTATE

PERSON OF INTEREST CON ED LOBBYIST EYED FOR REBNY Contentious Queens THE LEAD LOBBYIST FOR the state’s largest utility is in the running to head the city’s most powerful real estate industry project wins nod group. John Banks, vice president of government relations for Con Edison, is a leading contender to take over as fter a last-minute deal with the developers of the hugely con- president of the Real Estate Board of New York, a post held troversial Astoria Cove complex on the Queens waterfront, a City by Steve Spinola, who announced in the summer that he Council committee approved the project late last week. studio v and ken smith workshop would retire next year after nearly three decades at the John Banks LIFTOFF AT LAST: A revised Astoria Cove As part of the agreement, the development team, led by project won a City Council committee’s helm. Queens-based Alma Realty, will dedicate about 27% of the approval last week. At Con Ed, Mr. Banks has been one of the top executives A1,700 apartments to affordable housing, up from the previous commitment involved in the utility’s government affairs since 2002, of 20%. About 2% of those units will be subsidized by the city,but Alma will when he signed on at the company after serving as chief of have to pay for the rest. “You cannot impose mandatory staff for the City Council. Lobbying is a vital activity at Con “The big story is we got 25% of the units for free,” said Alicia Glen, [inclusionary zoning] at the levels Ed, whose income stream is determined by what rates it’s deputy mayor for housing and economic development, who called the deal they are seeking, and expect the allowed to charge by the state’s Public Service Commission. Steve Spinola a paradigm shift.“They are permanently affordable at a range of incomes.” market to be able to finance that,” At REBNY, Mr. Banks would be expected to follow in Mr. The developers have agreed to make that requirement legally binding in Ms. Glen said. Spinola’s footsteps, wielding the group’s considerable clout and wealth to a process known as mandatory inclusionary zoning. Although some hous- The developers also agreed to influence government policies that affect its membership. REBNY’s ing advocates demanded more affordability, Ms. Glen noted the developers add union jobs. board of governors, a group composed largely of the city’s biggest and still have to persuade a bank to finance the project. —joe anuta most powerful landlords, has been vetting candidates since Mr. Spinola announced his departure in June. As Mr. Spinola did before joining REBNY, Mr. Banks has spent much of Mobil station hits another big buy in the boroughs. oughs,such as Long Island City and his professional life in city government. In 1986, he began his career Invesco has purchased a minori- several neighborhoods in Brooklyn. working for the mayor’s office. In 1990, he joined the City Council, working market at $27M ty stake in the Factory Building in The company was part of a group of his way up to become the council’s chief of staff from 2000 to 2002 Long Island City, Queens, accord- investors, for instance, that pur- before leaving to join Con Ed. Mr. Spinola served as a senior economic A downtown Brooklyn gas station ing to several people with knowl- chased Dumbo Heights, a large development official under Mayor Ed Koch in the 1980s, before moving to astride its own triangular block is edge of the transaction. Brooklyn complex sold by the Jeho- hitting the market for $27 million. The company will have a 49% in- vah’s Witnesses last year. REBNY in 1986. With that asking price translating terest in the roughly 1 million- Long Island City has increasing- Jim Whelan Competing with Mr. Banks for REBNY’s top job is , an to $425 per buildable square foot, square-foot office property at 30-30 ly been looked at as an office market executive at the trade association who has helped lead its lobbying strategy any eventual buyer will likely con- 47th Ave. with upside potential. Landlord for the past four years. Among Mr. Whelan’s recent efforts was a successful struct either condos or a hotel to The owner, Atlas Capital, will Jamestown has signed several high- push to help keep Republicans in control of the state Senate. make the project work. maintain majority control and day- profile leases at the nearby Falchi Many in the city’s real estate industry view the Senate as an essential The Mobil station is located at to-day operations of the property.It Building. counterbalance in Albany to the Democratic-controlled Assembly. The 185 Flatbush Ave. Extension, on a plot was not immediately clear how Earlier this year, another big Senate, for instance, has generally been favorable to real estate interests, bounded by Johnson and Gold much Invesco will pay for the stake, landlord, RXR Realty, acquired the including such matters as laws that help landlords bring apartments out of streets, and could accommodate although there is speculation it Standard Motors Building for more rent stabilization under certain circumstances. 63,400 square feet of development. could be worth $175 million or than $100 million, with hopes of Ramon Martinez, deputy chief of staff to City Council Speaker Melissa That number could be bumped up more, based on pricing for office achieving the same kind of leasing Mark-Viverito, is also said to be a candidate for the job. —DANIEL GEIGER to about 76,000 buildable square buildings established by other re- success. feet through the city’s Inclusionary cent transactions in the area. A brokerage team from CBRE Housing Program, however. That Invesco and other institutional handled the sale of the stake in the means the developer could either investors have poured increasing Factory Building for Atlas Capital. provide affordable housing on-site sums into hot markets in the bor- —daniel geiger or purchase development rights from another nearby affordable project. A building of that size BARE BONES could include nearly 75 apart- ments. But with nearly 6,000 rental units in the pipeline in downtown Brooklyn and the surrounding Break Away... neighborhoods, and fewer than 400 available for purchase, Sean Kelly of CPEX Real Estate, who is market- ing the site, thinks the paucity of and make your business better condominiums could work in the purchaser’s favor. “There has been a huge demand for buyers looking for condo units with good access to transporta- tion,” he said, noting that the prop- erty is within walking distance of 1251 SIXTH AVE. 135 E. 57TH ST. 700 ST. NICHOLAS 11 subway lines and that the AVE. ASKING RENT; TERM: ASKING RENT; TERM: bustling area is still a bargain com- $90s per square foot; 17 $90s per square foot; ASKING RENT; TERM: pared with many Manhattan years undisclosed $100 per square foot; 10 neighborhoods. years SQUARE FEET: 51,200 SQUARE FEET: 7,800 The asking price for the proper- SQUARE FEET: 10,000 ty is near the $450 per square foot TENANT; REPS: Bernstein TENANT; REP: The Litowitz Berger & Gross- Compass Group; David TENANT; REPS: Capital that the seller of the Junior’s restau- mann; Robert Koslow of Kaplansky of Colliers One Bank; Joseph Aquino rant site down the street had hoped Colliers International and International and Faith Hope Consolo to get before it was pulled off the Howard Rosen of Lee & of Douglas Elliman Associates LANDLORD; REP: Cohen Industries served: market. Brothers Realty Corp.; in- LANDLORD; REPS: Financial Services . Manufacturing & Distribution . Technology —joe anuta LANDLORD; REPS: house representation by Hillview Towers; Mr. 1RWIRU3URÀW . Retail . Construction . Architecture & Engineering Mitsui Fudosan; David Marc Horowitz Aquino and Ms. Consolo . . Falk and Peter Shimkin of Real Estate Healthcare Transportation & Shipping BACK STORY: The BACK STORY: The bank Media, Entertainment & Telecommunications Investment firm Newmark Grubb Knight Frank investment-management will take space at the firm renewed its lease for mixed-use property in the buys Factory share BACK STORY: The law the entire 30th floor of Sugar Hill section of firm is taking the the building, according to Harlem, according to The 488 Madison Avenue, New York, NY 10022 An investment firm that funnels 50 Jericho Quadrangle, Jericho, NY 11753 building’s entire 44th the New York Post. Commercial Observer. 10 Esquire Road, New City, NY 10956 money from institutional clients floor, part of the 41st www.grassicpas.com like pension funds and banks into floor and a small space real estate acquisitions is making on the concourse level.

10 | Crain’s New York Business | November 17, 2014 Welcome to the neighborhood, Chase

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OPINION CRAIN’S NEW YORK BUSINESS

NY’s upstate gamble editor in chief Rance Crain publisher, vp Jill R. Kaplan hen New York grants its first must turn over a healthy percentage of their profits to EDITORIAL editor Glenn Coleman licenses for casinos beyond subsidize the state’s ailing horse-racing industry.) But the managing editor Jeremy Smerd Indian lands, perhaps as soon as law passed by the Legislature and the constitutional deputy managing editors Valerie Block, Erik Ipsen Nov. 21, it will essentially reveal amendment approved by voters imposes a five-year ban on assistant managing editors Barbara Benson, new casinos downstate. Erik Engquist the true motivation for bringing senior news producer Amanda Fung gambling to the Empire State. Casinos efficiently shift consumer spending from lighter- contributing editor Elaine Pofeldt columnists Greg David, Steve Hindy, Alair Townsend If it’s to help upstate towns add taxed activities, such as shopping and dining out, to heavier- senior reporters Theresa Agovino, quality jobs and get back on their feet, as Gov. Andrew taxed ones, such as feeding slot machines and playing Aaron Elstein, Lisa Fickenscher, Matthew Flamm, Daniel Geiger, Adrianne Pasquarelli Cuomo has said, the casinos will be sited in economically roulette.Their effect on local economies is less clear.The reporters Joe Anuta, Chris Bragg, W Andrew J. Hawkins, Irina Ivanova, depressed areas, which are far from New York City and its more money casinos bring in from outsiders, the better— Jonathan LaMantia, Thornton McEnery well-off northern suburbs. If generating tax revenue is the which is an argument for plopping them close to New York reporter/videographer Ken M. Christensen news producer Emily Laermer goal, the gambling resorts will be put within easy reach of City.The farther from web reporter/producer Nazish Dholakia the city’s big spenders and visitors. the city they are, the art director Steven Krupinski In siting casinos, deputy art director Carolyn McClain Therein lies a quandary for the state commission that will more they will rely on staff photographer Buck Ennis recommend three or four upstate casino locations before two goals—taxes locals gambling away copy desk chief Steve Noveck copy editor Thaddeus Rutkowski year’s end. It would be naive to assume that the governor and cash that would data editor Suzanne Panara and stimulus— researchers Jessica Kramer, Nicholas Wells legislators—who appointed the panel that chose the otherwise be spent intern Gemma Follari commission members—aren’t at least a little interested in are at odds elsewhere in their ADVERTISING the taxes that casinos will generate.The new gambling communities. When advertising director Joanna Harp sales manager Irene Bar-Am venues will give the lawmakers an opportunity to reap local spending is senior account managers Jill Bottomley Kunkes, Courtney McCombs, billions of dollars without saying they raised taxes, even diverted in this way, the Rob Pierce though much of the money will still be coming from their net benefit can be zero account manager Zita Doktor sales coordinator LeAnn Richardson constituents’ pockets. after the initial construction boost wanes. credit Todd J. Masura (313-446-6097) The place where gambling companies most want to build, That’s why casinos are a Catch-22 for New York.The CUSTOM CONTENT, EVENTS AND PRODUCTION of course, is the city itself. A Manhattan venue would shatter counties that most need economic stimulus are the ones that director of custom content Trish Henry director of audience & content revenue records, as has been demonstrated by the eye- would benefit least from casinos, because they are far from partnership development Michael O’Connor director of conferences & events popping numbers from the “racino” at Aqueduct Racetrack downstate’s population and tourism centers. Courtney Williams in Queens. (Racinos are not allowed to have table games and Depressing? You bet. events coordinator Adrienne Yee events coordinator & scheduler Alexis Sinclair reprint account executive Alicia Samuel production and pre-press director CRAIN’S ONLINE POLL COMMENTS Simone Pryce ONLINE AND INTERACTIVE SERVICES general manager Rosemary Maggiore TO SUBSCRIBE: Radio spot stains GOP For print and digital subscriptions or customer service, e-mail [email protected] or call 877-824-9379 (in the U.S. and Canada) or HE SAID WHAT? versity.That’s why we found seen in negative campaigns, we 313-446-0450 (all other locations). $3.00 a copy for his statement so troubling. expect objective news reporters the print edition; or $99.95 one year, $179.95 two As a regular CBS Newsradio At America’s oldest and to refrain from such irresponsi- years, for print subscriptions with digital access. www.crainsnewyork.com/subscribe istockphoto 880 listener, I normally enjoy perhaps the most ethnically di- ble statements in order to paint objective, nonpartisan reports verse Republican club, we are Republicans as the bad guys. TO ADVERTISE: SHOULD POLICE TICKET and analysis. But during the proud to say that our members —phil orenstein Contact Joanna Harp at [email protected] or call 212-210-0278. Nov. 8 Crain’s segment by Tim hail from the Indian, Haitian, President, Queens Village www.crainsnewyork.com/advertise RATHER THAN ARREST Middleton, I heard a startling Caribbean, Russian, Chinese Republican Club PEOPLE CAUGHT WITH statement: “Republicans hate and many other communities. FOR INFORMATION ON OUR EVENTS: immigration,” he said, as if it Many are recent immigrants Contact Courtney Williams at WRONG TERMINOLOGY [email protected] or 212-210-0257. A LITTLE WEED? were fact.The context was that who came seeking the Ameri- www.crainsnewyork.com/events the GOP electoral victories can Dream.They believe in our I found Crain’s poll “Is NYC’s TO CONTACT THE NEWSROOM: Yes. Low-level pot arrests are overkill and should be good for business but credo that if you work hard, new 25 mph speed limit worth discriminatory, and create more problems 685 Third Ave., New York, NY 10017-4024 are not, he said, because immi- study hard and sacrifice for the ROI?” incredibly offensive. editorial phone: 212-210-0277 than they solve. gration is a huge driver of the your children, anyone can suc- Driving more slowly saves lives. fax 212-210-0799 No. Drug possession is a crime, not a violation economy, and “Republicans ceed with minimal government Yes,a speed limit is only as good Entire contents ©copyright 2014 Crain Communications Inc. like jaywalking, and should be treated that way. hate immigration.” assistance and interference. as enforcement, but it’s a step in All rights reserved. ®CityBusiness is a registered trademark Although Republicans op- Utah voters elected to Con- the right direction. In addition, of MCP Inc., used under license agreement. Date of poll: Nov. 10 pose illegal immigration and gress Republican Mia Love, the implication that the people CRAIN COMMUNICATIONS INC. BOARD OF DIRECTORS 150 votes open borders with the ever- the Brooklyn-born daughter of dying in traffic are oblivious jay- chairman Keith E. Crain present threat of terrorism and Haitian immigrants, who said: walkers is insulting, considering president Rance Crain treasurer Mary Kay Crain the spread of Ebola, we wel- “My parents immigrated to the that most New York pedestrians Cindi Crain come our recent immigrants U.S. with $10 in their pocket, killed by cars are crossing in the executive vp, operations William Morrow 34% who bring new ideas and ener- believing that the America crosswalk with the right of way. executive vp, director of strategic No gy to the table and the spirit of they had heard about really did Really, though, it doesn’t operations Chris Crain entrepreneurship and rugged exist. When times got tough, matter that the two alternative executive vp, director of corporate operations K.C. Crain 66% individualism, the very princi- they didn’t look to Washing- answers are problematic.The senior vp, group publisher David Klein Yes ples that we Republicans em- ton, they looked within.’’ bottom line is: Human lives vp/production, manufacturing David Kamis brace. Queens is the melting When discussing this com- cannot be measured in return chief financial officer Thomas Stevens pot of the world, and the GOP plex issue on a level above the on investment. chief information officer Anthony DiPonio here in Queens reflects that di- political flamethrowing we’ve —rabi abonour founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) secretary Merrilee Crain (1942-2012) FOR THIS WEEK’S QUESTIONS: CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to [email protected]. Send columns of 475 Go to www.crainsnewyork.com/poll to have your say. words or fewer to [email protected]. Please include the writer’s name, company, address and telephone number.

12 | Crain’s New York Business | November 17, 2014 20141117-NEWS--0013-NAT-CCI-CN_-- 11/14/2014 1:53 PM Page 1

DAVID CAMACHO or Bill de Blasio’s lead. After I saw him continuing the council tradi- tion of drinking bottled water, I wrote him a letter or two. He is now Council should try seen everywhere with his large, BPA-free Klean Kanteen. I ab- solutely rejoice when I see that. My the local waters similar notes to City Council Speaker Melissa Mark-Viverito were answered with an admonish- very day, photographs of press conferences or ment not to write to her anymore. briefings capture City Council members drinking New Yorkers rightfully claim to bottled water, though it’s been proved repeatedly have the best transit system, parks, diversity,pizza, accents and, yes, the that bottled water is not cleaner,purer or safer than best tap water! It’s so good, in fact, New York City tap water. In fact, city tap water that it is bottled and renamed as consistently outperforms bottled water on taste tests. 100% natural, spring, filtered, dis- E tilled, purified, artesian, alkaline, As much as 70% of all bottled water is just filtered tap water. mineral or sparkling—and sold to us Plus,tap water undergoes more extensive testing and regulation. at a 4,000% markup. Back in 2008, the City Council It’s monitored by the Food and members drinking a bottle of resolved to avoid bottled water Drug Administration, the Environ- Wherever Springs Water. whenever possible. I don’t think mental Protection Agency and the Bottles are petroleum- council members have met that ob- city. Bottled water undergoes only based. Oil is required to jective and, in any case, they should FDA testing. make the bottles and ship go further and pass a resolution for I have written to lawmakers them, whereas tap is de- members and their entire staffs to about this.They retort that they livered by gravity. Recy- tote BPA-free bottles. If our leaders do drink tap water, but on cling bottled water is ob- began to shun bottled water and car- the council’s Flickr viously better than ried reusable, BPA-free bottles in- pages nearly every im- trashing it, but recycling stead, maybe one day their con- age is of a council mem- istock uses energy, and eventual- stituents would, too. ber with a bottle or a disposable cup. ly plastic is picked up by gas- Politicians claim to be in office to When I see average New Yorkers guzzling behemoths and ends up in make “change.”Well, this is the eas- drinking bottled water, I cringe. landfills. As much as 50% of items iest change they can make.This city What convinced them that bottled left to be recycled are, in fact, down- would do just fine without any bot- was better than tap? Maybe it was cycled—downgraded to become a tled water at all. Promote. the images of lush forests or clear lesser plastic in some other item that streams on the bottles. Or maybe it ends up in the trash. David Camacho grew up on Staten Island Why not? was the daily news clips of council The council should follow May- and lives in Manhattan. Let the Custom Reprint Department help you promote this great press.

on those sites for decades to come. The de Blasio administration has Contact: Alicia Samuel, Reprint Account Executive Details, please, on recast the job as deputy mayor for [email protected] • tel 212.210.0750 housing and economic develop- ment, with the emphasis on hous- city’s econ agenda ing. With a few exceptions, neither Ms. Glen nor her boss has talked about how to expand the economy hen Alicia Glen keynotes Crain’s Future of rather than make it fairer. New York City Conference Nov. 20, many For sure, the times are different. Bill de Blasio was elected because he people in the audience may be thinking said inequality was the most impor- about two of her predecessors as deputy tant issue confronting New York; it NOVEMBER 19, 2014 at 6 PM mayor for economic development. belongs near the top of any priority THE YALE CLUB, NYC Some of them are old enough to remember how the city’s cor- list. The Bloomberg administra- W tion’s affordable-housing plan porate base was fleeing to lower-cost locations when Ed Koch turned out to be hopelessly inade- promoted Alair Townsend to that job in early 1985. quate. And the economy is thriving. Advocate of the Year: Ms. Townsend described her Mr. Bloomberg bequeathed the Eric Enderlin, NYC HPD task as “throwing myself in front of current mayor a city with a growing every company thinking of leaving tech sector, a thriving tourism in- Nonprofit Partner of the Year: that we had a chance to keep.’’ Tax dustry and a rapidly expanding re- Housing Visions, Inc. breaks were part of her strategy, but tail base.New York is adding record she also was one of the driving numbers of jobs (about 100,000 Project of the Year (Downstate): forces in creating Brooklyn’s this year), including good-paying Coney Island Commons MetroTech as a home for many of ones in these industries and others. The Kretchmer Companies the threatened jobs. She also Even the average median house- ELH Mgmt pushed through programs that hold income is rising again. Tax made the boroughs more attractive revenues are growing nicely, which Galaxy General Contracting

(before she became Crain’s publish- makes the mayor’s budget decisions Project of the Year (Upstate): er and my boss). Eventually, the a breeze. flight was stemmed. GREG DAVID But almost 11 months into the Albany South End Revitalization Phase III Many of those in the room will new administration, it seems time Omni Housing Development LLC remember what happened when for a statement on how this admin- Albany Housing Authority Michael Bloomberg gave Dan front areas abandoned by manufac- istration will build on those suc- Doctoroff the same job. While Mr. turing for commercial and residen- cesses. Coming up with that strat- NYSAFAH Award for Service to Affordable Housing: Doctoroff ’s most immediate task tial use to create the capacity to al- egy and implementing it has always Donald Capoccia was spurring the recovery from the low the economy to grow and been the main responsibility of Ex-Officio NYSAFAH Board Chair Sept. 11 terrorist attacks and bring- accommodate the wave of new ar- those in Ms. Glen’s role. BFC Partners ing the Olympics to New York, his rivals he believed was coming. It is The Crain’s event would be a plan was bolder. why the city has surpassed 4 million good time for her to explain what Contact [email protected]  www.nysafah.org He rezoned underutilized water- jobs,and developers will be building she intends to do.

November 17, 2014 | Crain’s New York Business | 13 20141117-NEWS--0014-NAT-CCI-CN_-- 11/13/2014 7:43 PM Page 1

THE NY Area’s Largest Privately Held Companies LIST Ranked by 2013 revenue

A COMMODITIES TRADER named Ronald Stanton started Transammonia entities with no parent. Nor can they be nonprofits, hospitals, mutual Inc. in 1965, but for years traders simply called it Trammo. Last year, the companies, travel agencies or partnerships (accounting firms, law firms, company followed the crowd and renamed itself Trammo Inc. consulting firms, etc.). That change is just one of many, small and large, reflected in Crain’s Trammo’s name change may presage other modifications. Mr. Stanton, annual list of the largest privately held companies headquartered in the who was born in 1928 in Germany and immigrated to the U.S. in 1937, is New York area, which has been expanded to 150 firms. One thing that’s chairman emeritus. His 49-year-old son, Oliver, has worked at the company stayed the same: For the third straight year, Trammo is No. 1. since 1987 and is being groomed to run the place. To qualify for the list, companies must be independent, privately held —AARON ELSTEIN

 A3!7!06! 31&!5! A A515( %0A)%((%104 3!7$A%0A)%($ 1)20@ 0' 1)20@ $10!8!4%5! 12A!9!65%7!4 "A$#$A74$A "A$#$A74$A !)2(1@!!4  563!A1"A64%0!44 !3A!0 8aEVVX'WG       +( -( . !/!0 #!/ 4  5       !" #$! % & '! ()* ,)* 1  / ' 1  $ !/      /!2' %! "1  / '3 #" ! &IEabc!XaY (-8 9 :; 9<  +  /5/"! !%! " "!#" 4  5 6)7$ $    !" #$! % & '! ,--* ,(* !#% !#/ "   8 < ; = <;  >& '!  ! $! #%  $! % & '! 8adVY3aQEWSiEcSXW ? @A ; <B  #D   /  " /1 #$ /  4  5 7).!%$   '1 C$! #1 !" # *  !# #"3/%'      # !# #1 "'/! # !#3 UXXVFIaQ04  ? E= :; @@BF-#" $   '#5 / C$! #$! % & '! ,*    () 6IHYYUI%aXdY'WG 8)()? @ ; EBEAE  +)) 8 !/ %!#!#3 '1    5 ?$  3 !  "  C$! #1 !" #$! % & '! ,)* ,* 5!"! /3 # !# /    8 #" !!# 6IWGX%aXdY'WG  )-( < ; :<  #D )  / %!# "/ "#"$ 4  5  % // /0 #3 '1#  C$! #$! % & '! 88*  / // !# $!/      $!/ 1  &XaSiXW1IHSE'WG ) E  "@EGF& '! $! # ,7(* ,8* 3 # /# !#3    :@F<#;   C$! % & '! '!!'WHdbcaSIb'WG )7 @ # 1 !  % #" ! H (-!&$  !#%  C$! % & '! ,7* ,8*    = G@ 9 9=@  C1 !" #

Continued on Page 16

COMPANY SPOTLIGHT Ex-mayor back in the spotlight UPTICK IN REVENUE Total revenue increase for the top 150 companies (in billions) BLOOMBERG LP MICHAEL BLOOMBERG’S RETURN this fall to run Bloomberg LP, the financial data and media firm he founded in 1981 was unexpected but not exactly shock- $138.1 ing.After 12 years at City Hall,the former mayor was clearly not con- $132.7 tent to spend his remaining years on the golf course. #4 Mr. Bloomberg, who owns 88% of the firm and is estimated by Forbes to be worth $36 billion, is taking back the reins of a business 4.1% that’s expected to generate $9 billion in 2014, an 8.4% increase since last year and up from $5.4 billion when he handed over command to Dan Doctoroff in 2008.The company,No.4 on this list,also faces a changed landscape on Wall Street,with banks reducing head count and increased competition from other financial information players. Mr. Bloomberg, 72, said his firm can stay relevant by cultivat- ing young talent: “I assume I’m the oldest person in the compa- 2012 2013 ny. If I’m not, I’m pretty close to it.”—andrew j. hawkins Note: Includes companies with available revenue figures for 2012 and 2013 buck ennis 14 | Crain’s New York Business | November 17, 2014 The right combination unlocks true potential Many middle market companies are poised for growth. But how to unlock it? Convert to new technologies? Go direct to foreign markets? Allocate capital to R&D? Court private equity? Turn to Deloitte Growth Enterprise Services. We offer the right combination of service depth and skilled advisors to help you make sound decisions, operate efficiently, and grow.

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Gain insight with Perspectives, our series of reports, webcasts, and events for mid-market and privately held companies at www.deloitte.com/us/dges

As used in this document, “Deloitte” means Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Financial Advisory Services LLP, and Deloitte Tax LLP, which are separate subsidiaries of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

Copyright © 2014 Deloitte Development LLC. All rights reserved. 36 USC 220506 Member of Deloitte Touche Tohmatsu Limited 20141117-NEWS--0016,0018-NAT-CCI-CN_-- 11/13/2014 7:43 PM Page 1

THE LIST NY Area’s Largest Privately Held Companies

 A3!7!06! 31&!5! A A515( %0A)%((%104 3!7$A%0A)%($ 1)20@ 0' 1)20@ $10!8!4%5! 12A!9!65%7!4 "A$#$A74$A "A$#$A74$A !)2(1@!!4  563!A1"A64%0!44 !3A!0 4EUUEHSdV#`dSch4EacWIab  (,,      $*   * 86,     1'E%  3  4 6&$  0..' 1'E C$ $ % & ' +)     7SQVE4UEbcSGb%aXdY 78   ' +    =8, +( .%.$ 242 4 2  ' $'E.  ' 20.2 '0 C$ $ % & ' ,) ,) E$' 66 ,+    $ %0 2%% 9WSeSbSXW!XVVdWSGEcSXWb'WG  +,,,  % &    * +  0E 20 3  4 8,$   '     $ % & ' )      ,( !XWcSWIWcEU%aESW!X 6, ($  &  $    =,  2 4'     $ 66    .2  C$ $ % & ' ,() 8)    6 4!6SGREaH7XW  8(++ !%      * (+ D . %00. ' ' E ,   E 0 $  C$ $ % & ' +) .  0' 0 ' - 2. 6, !       &EaXUH0IeSWbXWbbXGSEcIb'WG  878+ -     * +6, 3 4' %40 ' 3  4  %./ $.    () E2   '    - 2. 6, 'WbIaaE7dYIaVEaTIcb'WG  ,7,7        * 6 $0D '0   3  4 D2 D $0     $ % & ' ) '0    $$6+ %XhE$XXHb'WG +(+7    )  $   = + -'%' 2 2 3  4    3  2E    ) )  4'   ''67+ 8Xah daGR  8( + % $   &   *  C.$2    2 3  4 57$  E4' $ C$ % & '  ,)  .     %IUUIac%UXFEU%aXdY 7(,( !  ! !   * +, F0  %0 ' 3  4  ../ 2 .. 2.4.2 '0 C$ $ % & ' 8)  <./4 $68 !2!EYScEU ,+(8      * +8, .  ..4' % 3  4 ++5+$ 0. C$ % & ' 7)    + 6EUUhI1XcXab&XUHSWQ ,88,8    '   =((+ ,( ' . $0 3  4 8 $  .  ..E     $ % & ' 8) ()  D.E,68 4dFUSbRIab!UIEaSWQ&XdbI ,8((,+  % !    =(+6 ,, F   0E 3  4 (C$ .3  0$   $ % & ' ,+) ) %% 2 2 %0 '   5$2, % 0.E    !aIbcaXW#UIGcaXWSGb'WG 686+  %    * , '%' %4'.2 ' ,. 3     C$ % & ' +) $ ' .  D . 2$68+6 .' &dWcIa6XFIacb!XWbcadGcSXW%aXdY 8(      =766 77 C '2   3  4 ,4 E $ 2   $ % & ' 6() () 2  . 2    ( 1EWREccEW IIa"SbcaSFdcXab 6(77 '    =68 ,,(  0  4' 3  4 7,,<+7$ $4    $ % & ' +) +) &+,, !     C$ %%.%% $IHfEhbbXGSEcIb'WGEWHPpUSEcIb 768+8+++   )    =68 6 F0   4'   ' 7,C0'3  % E C$ $ % & ' 68) 6) 0 -.2 ' 2 ,  E6 #        UdI8II!XaY  ,7((( )  (     * ,  0 .0  2 3  4 ,  '$ 4.'     $ %%.%% )  2 '' . .      4' UUSIH IeIaEQI%aXdY (+8  % $   =6( ( 5 0  4' ' E 85$2  .. 4 2    $ % & ' 7) +)  C .66 1XHIUU'b7YXacSWQ%XXHb  (     * ( D .0 22 ' E +7( $   .. C$ % & ' )    ( )Ih$XXH7cXaIb!X 3YIaEcSeI'WG 6(6+   %   + =6,+ + (( '0  0  0 . '$  E% C$ % & ' 8) )   F.+ 8dUUh!XWbcadGcSXW!X 6(++86 (  +$%  =8( * C ' $'.2 3  4 6, $  .  '..E '*0E   $ % & ' 7) )  -.'$28( )aEbHEUI$XXHb'WG 7+87+8+       * ,6 5$. . % 4' 3  4 8,5D   . %   $ % & ' ) 5$ .8+ ')  ' )  <& '   0  $ % %.%% (IcaX!EbR!Eaah#WcIaYaSbIb 6(,,7+, ' % &   =6+7 ,, >  E%  3  4 ,+ I   C$ % & ' ,) ,+) $. .  C.. 2 ,8 Continued on Page 18

COMPANY SPOTLIGHT A global trendsetter moves up WINNERS AND LOSERS Revenue changes for the 150 largest companies between 2012 and 2013* TORY BURCH TORY BURCH IS LOOKING very fashionable indeed. The 10-year-old firm landed at No. 24 on Crain’s top privately held companies list Remained the same by doubling its revenue from 2011 to an estimated $1 billion last year. With more than 140 stores in 50 countries, Tory Burch is well #24 on its way to dominating the ready-to-wear women’s apparel mar- 9.2% ket with global-brand power that is hitting all the right trends. 17.6%

bloomberg news Decreased In September, Ms. Burch recruited Roger Farah, who had 73.2% spent 14 years as president of Ralph Lauren, to join her as chief Increased executive of her namesake brand in a shrewd move applauded by industry professionals. The company recently collaborated with Fitbit on a line of wearable tech accessories and is launching watches and dinnerware later this year. It will jump into the ever-popular sportswear craze by debuting an athletic line in 2015. But Tory Burch might not become a fixture on Crain’s private companies list. All reports indicate that the fashion house is a prime candidate for an initial public offering. —adrianne pasquarelli *Includes only companies with available revenue figures for 2012 and 2013

16 | Crain’s New York Business | November 17, 2014

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THE LIST

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COMPANY SPOTLIGHT Gold biz loses its luster BIGGEST GAINERS % change in company revenue, 2013 vs. 2012* MAX KAHAN THE MAN BEHIND THE METAL has less green in his sheen. Among Crain’s top privately held companies, Max % change YE 2013 revenue (in millions) Kahan Inc. reported the biggest revenue drop for 2013, Nomorerack.com Inc. (64) down 48.6% to $381.3 million. The diamond district +432.7% $341.8 #60 shop,which sells gold to jewelry makers and buys their MediaMath (69) scraps, expects to fall further this year, by 22.5%, to buck ennis +134.2% $322.4 $295.6 million. “The price of gold came down Intelligent Audit (70) tremendously,”Mr.Kahan said.“The sales came down,and the value of sales came down.” +119.9% $318.8 On the rise for more than a decade, gold peaked at $1,923 an ounce in August 2011 Hudson Realty Capital (67) and has since fallen to about $1,150,a four-year low.But—on the bright side—when the +101.9% $333.2 cost of gold goes down, demand for gold increases. “I’m not sure these are tough times for people in the gold jewelry business,” said analyst Jeffrey Christian, managing partner McKissack & McKissack (145) of CPM Group.He expects to see the price bottom out close to where it is now and slow- +84.9% $100.8 ly move upward into 2015 and 2016. —jessica kramer *For companies with available revenue figures for 2012 and 2013.

18 | Crain’s New York Business | November 17, 2014 CN016735.indd 1 GCA www.gcany.com York New of ,Inc. Association Contractors General The Build it. Build it. Plan The Future > > > > > Development Tappan bridges Zee come: to decades for competitive economically York keep New will that additions major building are employees trades and 20,000 professional than more their Today enhanced bidding opportunities, and a safe work asafe and bidding opportunities, environment. enhanced investment, private development, contract fair provisions, region’s the and opinion leaders, promoting infrastructure authoritative the is GCA The for source industry, government, defi Newnes York City. that infrastructure utility and transportation parks, schools and ofcontractors its member on who behalf foundations, build the 1909, advocate been astrong forceful Since and has GCA the Association Contractors General The contractors: construction exclusively issues devotedto the heavy facing NewIn York City, is one organization there Foundations for the HudsonFoundations Yards the for Extension Line #7 Access Side East LIRR and Kosciuszko new The AvenueSecond subway, 1 phase our 275 member fi member our 275 and rms > > > >

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Photo: New York State Thruway Authority 20141117-NEWS--0020-NAT-CCI-CN_-- 11/13/2014 7:44 PM Page 1

THE LIST NY Area’s Largest Privately Held Companies

 A3!7!06! 31&!5! A A515( %0A)%((%104 3!7$A%0A)%($ 1)20@ 0' 1)20@ $10!8!4%5! 12A!9!65%7!4 "A$#$A74$A "A$#$A74$A !)2(1@!!4  563!A1"A64%0!44 !3A!0 "IWSREW&XbYScEUSch%aXdY +8,6  ,     =, (  . $02   3  4 ,,-%$   $ C$ % & ' 3 $0.E 8) ()   68  3 4( ,5    C$ % & ' 3 $ F   &dHbXW6IEUch!EYScEU  ,,, )      / *  * ++ , D .  %'2 3  4 ,751' 5  $'0 C220   7)     # (#UIGcaSG'WbcEUUEcSXW!X 6(6(87+       =,  <.  .  3  4 +8+  .  I(77 C$  (8) ,+)  2F.CE 1IHSE1EcR 8+8(++   6*,  * , >.4. $.2E  3  4 ++ E  $ C$ % & ' +) % .  2    ( 0 2E  'WcIUUSQIWcdHSc  (( 7    )   * +  0 % .' 3  4 85  ..2 ' C$ % & ' 77) 2    D$ ..  688 aXEHeSIf2IcfXaTb 7+76       =( (, C.'  % 4'   3  4 (5 $    4       $ % & ' 6,) )  DE   ,6 'VYIaSEU EQ4EYIa!X +66++   +     =, + 5$. . %  0 22 3  4 ,,5*7 ' 0 .42 C$ % & '  ) 7) I .'00.    ECE68  +       "SEUVIaSGE1EaTIcSWQ'WG  ,(+ $  %   + * ,  .  2 3  4 78 $'  .  .  C$ $ % & ' *  $$6+7, 4EUV Eh'WcIaWEcSXWEU'WG ,8(+6   +$   = , 5 0 0  3  4 +( 4  3  0.4E   $ % & ' 6) +7)   5$2, 'WPXaVEcSXW dSUHIab 68++ !      = +6 %    3  4  ./ % 4'.    $ % & ' ) )     3YIW0SWT$SWEWGSEU'WG  ,8688 , # !    + *  % 3  4 ,DD./ .%   $ % & ' +)  5. ,,8 UGXcc&6%aXdY 8+  $    =+ ,  % . 0.E  2/ 3  4 6<& '  .  .2 '0    ,) 6)  - 2. 6, 8aEeIU!USGT (6+( % $  * 78+  .  0 ' 3  4 6 1'   ..  C$ % & ' ,)    8 24"%aXdY'WG ,88,6 +      =7 (,  2   $  0 4 75$ D 0 C$ $ % & ' ,+) (+) %      5$2, &EaFXa7IEPXXH'WG  (8+, (    =, ++ 5$. . % /  % 3  4 787 .. D $ 4  % C$  +) 7)  E  + 0SFIach1EaScSVI!XaY ,8+(((( (   '   = , 3 0 % 2 0  3  4 767 '  .4 E  C$ % & ' 7) ,8)  ' + 4aXVXcSXWSW1XcSXW!Xb'WG 6(+,(  !     =7, , '%'  % ' 3  4 ,C  3  0    $ % & ' ) 6)  % $.   .. . 6+  % 8IUg%aXdY'WG (66(,7       =8 (, 3  .' 3  4    .& C$ % & ' 7() 7)   0      + 496#'WbdaEWGI ((((6(6   $$  =, 8  0 E'.E'   0 4 ++'$ E 0' '   C$ % & ' ++) 7)  5$ .8 EhbSHI$dIU3SU!XaY 6(67( '    =6 + 5$. . %%' .0 ' 3  4 668$  E 4E  0    7+) ()  .0    .E+ 9WSXW7`dEaI&XbYScEUSch%aXdY  (,(,  % %   * * D '  3  4 +51' < '$2E C$ % & ' *     7cIaUSWQ'WPXbhbcIVb'WG 68,    !   =76 66 <0.E 4 2 ' 3  4    .24 $   -' $ % & ' +() )  2'0.$ .$   +  "        !dVFIaUEWH4EGTSWQ!XaY 6((,(+ ') -    = +(+ -'%' 3  4 C'4 . 0    $ % & ' +7) 7)  .E, Eaa Eaa'WG ,8   '   =+  C '2   3  4 +85+$ 4 4    $ % & ' ) 6)    Continued on Page 22

COMPANY SPOTLIGHT It all adds up for marketer PROFIT MARGINS BY INDUSTRY Average net profit margins of selected industries in the Northeast MEDIAMATH MEDIAMATH CEO JOE ZAWADZKI describes the company’s software as INDUSTRY 2012 2013 2014 a Bloomberg Terminal for marketers, where they can buy target- ed ads online, across mobile, social and video platforms. Its soft- Finance and insurance 10.6% 14.0% 15.1% ware, the TerminalOne Marketing Operating System, does for Health care 8.5% 8.6% 9.4% advertisers what was once done by dialing numbers for publish- #69 Real estate 5.2% 8.6% 8.5% ers.“People are realizing that, instead of doing this stuff manual- ly, they can now achieve 10, 50, 100 times better performance,” Manufacturing 4.3% 4.4% 4.9% Mr. Zawadzki said. More than 5,000 brands, including eBay and

bloomberg news Arts, entertainment and recreation 7.2% 6.5% 4.3% L.L. Bean, have signed up. MediaMath attributes its 134% growth between 2012 and 2013 to scaling its existing Information 4.5% 5.5% 4.2% clients across more media channels.This year,it opened offices in Paris,Singapore,Tokyo Construction 1.7% 2.5% 3.9% and Sydney. It acquired French cross-device targeting company Tactads, U.K.-based social-advertising firm Upcast, and Bellevue, Wash.-based targeted media-solutions Retail trade 1.4% 1.7% 2.2% company Rare Crowds, with more acquisitions to come. —nazish dholakia Note: Data reflect 12 months through October. Source: Sageworks Inc.

20 | Crain’s New York Business | November 17, 2014 NEW Presents YORK STORIES

Hosted by Jill Kaplan, Publisher Crain’s New York Business Profiles of Entrepreneurs in the 5 boroughs

Mondays at 9pm

Crains New York @crainsnewyork 20141117-NEWS--0022,0023-NAT-CCI-CN_-- 11/13/2014 7:45 PM Page 1

THE LIST NY Area’s Largest Privately Held Companies

 A3!7!06! 31&!5! A A515( %0A)%((%104 3!7$A%0A)%($ 1)20@ 0' 1)20@ $10!8!4%5! 12A!9!65%7!4 "A$#$A74$A "A$#$A74$A !)2(1@!!4  563!A1"A64%0!44 !3A!0 &IWIQEW!XWbcadGcSXW!X 7+68++ $  "   = 7 C '2   3  4 ,5$ $  2 C$ $ % & ' 68) +) 2  . 2    2EcRIU2EcRIU'WG  6(778,   #   * + 5$. . % ' 2 4.  3  4 ,6C .  0 '     $ % & ' 6) &+6+ (61!XWbcadGcSXW1EWEQIVIWc  ,+,, )  !     *  C '2   3  4 +58$ I  C$ % & ' ) 2  . 2   (    (      !EaI1IH4REaVEGIdcSGEU7IaeSGIb  (666+, % *  * 6, 0 .E0$ E * 7( '    0 C$ % & ' *  ' + 8IaVSWEU!XWbcadGcSXW!XaY 777,   #    = , C '2   3  4 , 2$E6'$  . '   $ % & ' 6,) ) 2  . 2 5D2 66, $(!7IGdaSch7IaeSGIb'WG ,8(8 & ,   '   =, 8  ' E.' 3  4 6, $' 0 %I ' E C$  (6) 7) -. .  & ,     $   !36IPaSQIaEcSXW7dYYUh!XaY 6(767  '    =, 8 5$. .  4'% 3  4 +76 4$   C$ % & ' 7) +7) % 2  2 2F.CE 1'0 0 '00.  !UEaI6XbI'WG  8+6,(+ '     * 86 $. . 3  4 D <& '  .  .     $ % & ' 7) <0$ 786 #aQXWXVSG%aXdY'WG ,86+86666  ( !    = + F%  $.2E.' 3  4 87C2' D D 22 '0   $ % & ' 8) ) 0    4' 5 4' E,7 !XUUIGcSeI  8+877(888        * + .  2  3  4 75+  ..   -' $ % & ' )   8 9WHIacXWI 8(,(  % & $    *  32. 20E 3  4 +  '   C$ % & ' )   6 )SWH&IEUcRh7WEGTb  888   $*,%  * ( ..' .%4  3  4 6 E   -' $ % & ' ,6,)   ( 7'7hbcIV'WcIQaEcSXW'WG 68 ' %    * 86, F%  $.2E' 2 3  4 +(56$ E  C$ $ % & ' ) '.2     ( ' #B!XWbcadGcSXW!X 8+8888  % & ,  *  8 C '2   3  4 5$ $.. 4 & '   $ % & ' 6) 2  . 2   + )XRW4IHIabIW$XgbbXGSEcIb 7668, ($ *  = 886 $ ' 3  4 5+ 0% 220 0. +6) ,)   8 $"!XWcaEGc$daWScdaI'WG 66      =7 86 C %' ' '.E ( $  % C$ % & ' 86) 7)   7 @SGI1IHSE'WG  6(,77 '  '   6 =,  '4.$20 . 3  4 77$   C%' $ % & ' ) (,6) (  .E+7 4ESQI#UIGcaSG!X  7(8(66(  $  !   + *  5 4. .  3  4 80 2% .D 02 .   C$ 0   ) 56( EacUIcc"ESah'WG 6(8,(77 +   )  =( + 3 E%  3  4 ,,$ 4 . E    7() ,) +, !XVYdcIa%IWIaEcIH7XUdcSXWb'WG  +(( (  &    * , % %  $.2E 3  4   E 2   $ % & ' +7) .'  '' 2   ( ..   7YIGSEU1EcIaSEUb!X  8+888+   &   * 8, >.4.0 .E$ . 3  4 65+$ 2.4. C$ % & ' 8) '%'  4'   ( 0EWQEW#WQSWIIaSWQ #WeSaXWVIWcEU +67,+ )  + ! ,  =7 (8  .0  2 2 3  4 7daeIhSWQEWH0EWHbGEYIaGRScIGcdaI .2   $ % & ' 6) 8)     .    ./ !  - )      22  2 F . &EiIWEWH7EfhIa 666(+  ' " ,   * 6,        . 3  4 +7( $  $/ E    $ % & ' 8) 2 2     ( daXaE!XWcaEGcXab'WG 87(6(, & , 2 '  =, 8, 8 C '2   4 DE   '        ) 8,) 2  . 2 2 D  667

COMPANY SPOTLIGHT Feeding off the city’s growth 2014 SALES GROWTH BY INDUSTRY Average sales growth of selected industries in the Northeast. BARTLETT DISTRIBUTOR BARTLETT DAIRY INC., No. 108 on Crain’s top privately held companies list, saw Construction DAIRY its 2013 revenue increase 19.8% from 2012, to $171 million. Bartlett, based in Jamaica, 11.6% Finance and insurance Queens, expects to grow further thanks to its acquisition this year of Farmland Fresh 8.1% Dairies.“That gave us opportunity and a slightly different customer base Health care in the New York metro area,” CFO Robert Patrizio said, noting that the 7.3% deal opens up Bartlett to more customers from New Jersey. Real estate #108 6.1% Other food sellers also reported big growth in the past year. Fruit Retail trade and vegetable wholesaler Nathel & Nathel (No.91),based at the Termi- 5.7% nal Market in the Bronx, saw revenue jump 17.2%, to $230 million. Manufacturing And online grocer FreshDirect (No. 49) saw a 25% increase 5.5% Information from 2012, to an estimated $500 million in 2013. Chief Exec- 5.1% utive Jason Ackerman said the company is “as energized as ever,” Arts, entertainment and recreation despite the recent launch of competitor Amazon Fresh. 2.7% —jessica kramer Note: Data reflect 12 months through October. Source: Sageworks Inc. istock 22 | Crain’s New York Business | November 17, 2014 20141117-NEWS--0023-NAT-CCI-CN_-- 11/13/2014 8:46 PM Page 1

 A3!7!06! 31&!5! A A515( %0A)%((%104 3!7$A%0A)%($ 1)20@ 0' 1)20@ $10!8!4%5! 12A!9!65%7!4 "A$#$A74$A "A$#$A74$A !)2(1@!!4  563!A1"A64%0!44 !3A!0 1IHSEXGIEW 8(      =(8 7 % 0   %  2 3  4 +,5($    C$ % & ' 6+) +() ' E    CXHUI ,+,+  $ $   *  .  2% .. 3  4 ,5  E.  C$ % & ' 8) 4'      VIaIg%aXdY 87  !   =6 ( 5$. . 00 . 3  4 , $   &2 '0 C$ 0   ) 6+)   ( "'HHEaSX!X 8+7   8  =,( , '%' % 2 3  4 ,7,$   C$ $ % & ' ) )    % '. '  - 2. 6, 7XUXVXW 4EQI%aXdY +8  % '    '  (  =8   0  E%%2    0 4 8  .02  22   () ,() & '   $%'..   8 2 E  $ 1ScGRIUU1EacSW'WG 7+++ !  " *  =8( ( F%  $.2E$ .$ 3  4 65($     ,) 7()  %%2'.2   ( YYUI 1IcaX'WG 7+666 6  + ,   =,8 , 00. 4 K '  3  4 ,,     00.    '  C$ $ % & ' +) +)  ,( 3bGEaHIUE6IWcE  (, 0       * , C.$2    2 3  4 5+   .  C$ % & ' *  .   8 IWpIUH#UIGcaSG7dYYUh!X 7+7+(888    $  =+7( + 3 4' % .  ..2$2 4 ,%E    4 % . .     $ % & ' ,+) ) 0 ' 5$ .8 0EPEhIccI2IfCXaT 8+86(6   9$  =, + 5 K00 .$. . 3  4 +(%E   .%E  +(E   $ % & ' 6) 6)    8RXaWcXW8XVEbIccS'WG 76886( +  6 '   =8 (  '' . 2 2 2 3  4 ,  $   C$ $ % & ' 8+) )  2.E        ( ' *    !ahbcEU!X (,(   %  * + F'  4  2 3  4 ..0  E. C$ $ % & ' ,+)   , caSdV7cEPpWQ 7,,    =6, ( %%2  '  3  4 6-%$   '%% -' $ % & ' ,) 8()    3dcFaESW  8+8(86+7 7 !   * * C  E0.%  3  4 75$ '4  C%' $ % & ' 8,)    0XaIW!XVVdWSGEcSXWb 6,+7 (    = , F . . 3  4 'WcIaWEcSXWEU0cH H C$ $ % & ' ) ()  . ' +(5..   , YY2Igdb 8+8(,8+8   /8%  = 8 F 0   2 3  4 (5  00 &' C$ % & ' 68+) ,6,)  $.2E0.%      $     7IeIW'WG 788++8  !$  =, + 7 5 %  .' 3  4 5  + .    $ % & ' 7+) 7() 0 ./   '     VIaSGXW!XWbcadGcSXW'WG 6+7    $  =8+  C '2    0 4 ++5($    0. ) ) 2  . 2    %dEaHSEW7IaeSGI'WHdbcaSIb'WG 8+,7, '$4' %5 "*   =,  -.E.'0    '.E 8&$  2'    C$ % & ' 8) ,) I . C0  .       ' E$2 C$ %0 2%% 3WGX 8+8,866 $ 6     =6 ( .2E0$ E 3  4 +   8  $  (6) +)    2XacR(IabIh1IHSE%aXdY'WG 76,876       * 7,  00 0'4.$2 3  4 > './  $I  E C$  )  .0 2 5. 6++ '        YYUSEWGIb!XWWIGcSXWGXV  (777+6  & $  * , .  . %$ 00.  3  4 (6 $  00.   C$ % & ' * %' $2  .E+ 1G@ISQRbbXGSEcIb0cH 86(7(( & , 2   * 6, -'..   22   3  4 6,3&   2$   $ % & ' (8) $ .' 2  .2   E .. 6 '.2%  !2C%aXdY  78      * 87 C '2   3  4 +57$ E2 '0    +,) 2  . 2   ( Continued on Page 24

COMPANY SPOTLIGHT Construction firms bulk up FORTUNATE FEW Top executives from select privately held companies AMERICON CONSTRUCTION COMPANIES OCCUPY 16 spots on Crain’s list of COMPANY NET WORTH the largest privately held companies, a sign of the building EXECUTIVE (RANK) TITLE (IN BILLIONS)* boom in the five boroughs.The New York Building Congress Michael projects $31.5 billion in construction spending this year. Bloomberg Bloomberg LP (4) Founder $35.7 “The city is very busy in terms of new leasings,upgrades istock Samuel “Si” Advance #131 Newhouse Jr. Publications Inc. (5) and retrofits,”said Richard Cucci,founding principal at No.131 Americon Construction Inc. Chairman $8.8 “With the advent of Silicon Alley, the demand for space is very competitive.” Americon Ira Chairman, reported 2013 revenue of $122.5 million, 10.1% more than in 2012. Rennert Renco Group Inc. (8) chief executive $6.3 Plaza Construction (No. 58) built the new Fulton Transit Center. The firm’s projected Donald Trump Chairman, revenue for 2014 is $815 million, more than double 2013’s and the largest expected per- Trump Organization (3) president $4.0 centage growth on the list. “There’s a lot of luxury projects,” said CEO and President Chairman, Richard Wood.“Land is so expensive. It’s really hard to pencil out a rental project.” Res- John Red Apple president, Catsimatidis Group Inc. (8) chief executive $2.3

idential construction spending is forecast to reach $12.4 billion by 2016, up 80% from bloomberg news/ap image 2013, while the number of units rises by only 30%, to 24,000. —nicholas wells *As of Nov. 4, 2014 Source: Forbes

November 17, 2014 | Crain’s New York Business | 23 20141117-NEWS--0024-NAT-CCI-CN_-- 11/14/2014 2:01 PM Page 1

THE LIST NY Area’s Largest Privately Held Companies

 A3!7!06! 31&!5! A A515( %0A)%((%104 3!7$A%0A)%($ 1)20@ 0' 1)20@ $10!8!4%5! 12A!9!65%7!4 "A$#$A74$A "A$#$A74$A !)2(1@!!4  563!A1"A64%0!44 !3A!0 !dacSb'WbcadVIWcb'WG  7+88876 '$   *  '%' % '  3  4 ,  '  '    $ % & ' )  .%  .   $.  ',,+7 &)7#WQSWIIab aGRScIGcbEWH0EWH7daeIhXab 6+6776 "$   = ,+( 7 C '2   3  4 +5.. $   C$ $ % & ' +,) +,) 2 2 $ '   , !4BS 8+8(8(7 ,  '   = ++ 32. $.20E 3  4 ++ E 0& C$ $ % & ' +7) 66)   ( 8RIaVfIUU4aXHdGcb!X 8(+++ )  !   =, , '%' %$   3  4 +D' 6'$ %  2    () +,)  $  00 ' $$6+ 7dVVSc7IGdaSch7IaeSGIb'WG  ,8++   $ #   $   * 67  ' E 2  3  4 7DD./ ' ' E C0   * 4 2 ' 2   5. ,,8 8XdQR1dHHIa H      * + 4. '     2/ 3  4 ,   $C  '2$'  C$ % & ' +6)  .E "'QXbcSWX7dYIaVEaTIcb'WG  7+(+ #   8     + *  '0  2 '0 3  4 (, D 2E   $ % & ' *  $,( 1G)SbbEGT1G)SbbEGT +78, %  ,    * , C '2   3  4 &$       $ % & ' (+7)   ( 1SWHUEWGI (8,+ 2 ,   = ,7 %%2'.2 3  4 (D  .  C$ % & ' ) 8) 4 6 3  C$ %%.%% DIcE'WcIaEGcSeI 88, )   '   =8 6+ C' .% E.  2 3  4 (,  /    C$ % & ' +6) 68)   8 @SGXV!XVYdcIa7IaeSGIb'WG 887+7   2 .2  22   = ( F%  $.2E 3  4 + $..D   C0   6,) 7)    - 2. 6, 2    2  <& '   0   1G1daah*81% (((88(667  (  =77 6 -'..    2 3  4 (<+,$ ' E2 C$ % & ' +) (() '   22  2 E   6   ', C$ % ' %% 7fIIc!XWbcadGcSXW!XaY 77 ')    =( + C '2   3  4 , 1'   '   $ % & ' +8) (7) 2  . 2   + 2If CXaT EaIE .'     CE  5 $   '  '%%. '        2  < & '  5 '       E D ' %2'  $ 4  '     . 0.  D 2  0   $2   4   ' '  .. %2'  F  %   %2'  %  '  0   .  .0$4 ..E ' $   2 '4  <& '  E $. . .  *  .4.  -'..  %'.. 1' .   %  0  + C$2    %    F  8   + '..  , %3  8 %'  6< % %.E     (E  2 $ 7 %3  D   $9'/  $.5 .. , 

ALPHABETICAL LISTING OF COMPANIES

COMPANY RANK COMPANY RANK COMPANY RANK COMPANY RANK COMPANY RANK 24 Seven Inc...... 130 CNY Group ...... 137 Harbor Seafood Inc...... 80 MediaMath...... 69 Sigma Plastics Group ...... 18 A&E Stores Inc. and Associated Cos...... 52 Collective ...... 99 Harold Levinson Associates Inc...... 22 Mediaocean ...... 114 Solomon-Page Group ...... 118 ABCO Refrigeration Supply Corp...... 96 Computer Generated Solutions Inc...... 109 Hazen and Sawyer ...... 112 Mindlance ...... 146 Special Materials Co...... 109 Advance Publications Inc...... 5 Continental Grain Co...... 20 Hearst Corp...... 2 Mitchell Martin Inc...... 119 Sterling Infosystems Inc...... 87 AFD Contract Furniture Inc...... 105 CPXi ...... 140 Henegan Construction Co...... 90 Modell’s Sporting Goods ...... 36 Structure Tone Organization ...... 14 Alcott HR Group ...... 77 Crestron Electronics Inc...... 30 Horizon Media Inc...... 10 Nathel & Nathel Inc...... 91 Sugar Foods Corp...... 48 Allied Beverage Group ...... 35 Crystal & Co...... 125 Hudson Realty Capital ...... 67 Nebraskaland Inc...... 62 Summit Security Services Inc...... 142 Amerex Group...... 116 Cumberland Packing Corp...... 88 Hunter Roberts Construction Group...... 31 Nomorerack.com Inc...... 64 Sweet Construction Corp...... 150 Americon Construction Inc...... 131 Curry Automotive ...... 42 IBEX Construction Co...... 103 North Jersey Media Group Inc...... 134 Telx Group Inc...... 83 Apple-Metro Inc...... 120 Curtis Instruments Inc...... 137 ICC Industries Inc...... 15 NPD Group Inc...... 79 Terminal Construction Corp...... 94 AppliancesConnection.com ...... 135 D’Addario & Co...... 117 Imperial Bag & Paper Co...... 72 Onco360 ...... 133 Thermwell Products Co...... 141 AppNexus...... 129 D’Agostino Supermarkets Inc...... 144 Infor ...... 16 OpenLink Financial Inc...... 76 Thornton Tomasetti Inc...... 124 ASI System Integration Inc...... 102 Denihan Hospitality Group ...... 66 Information Builders...... 75 Oscar de la Renta...... 121 Tory Burch ...... 24 DialAmerica Marketing Inc...... 73 Inserra Supermarkets Inc...... 23 Atrium Staffing...... 126 Outbrain...... 127 Tough Mudder ...... 143 Diane von Furstenberg Studio ...... 49 Intelligent Audit ...... 70 Aurora Contractors Inc...... 113 P.C. Richard & Son...... 21 Trammo Inc...... 1 Doherty Enterprises Inc...... 53 Jetro Cash & Carry Enterprises ...... 40 Bad Boy Worldwide Entertainment Group ...... 43 Paige Electric Co...... 107 TransPerfect ...... 59 Eileen Fisher Inc...... 57 JRM Construction Management ...... 92 Bamberger Polymers Inc...... 41 Palladium Equity Partners...... 17 TravelClick ...... 78 E-J Electric Installation Co...... 68 Key Food Stores Co-Operative Inc...... 37 Banfi Products Corp...... 63 Palm Bay International Inc...... 74 Trump Organization...... 3 Empire Office Inc...... 54 Kind Healthy Snacks...... 101 Barr & Barr Inc...... 89 Personal-Touch Home Care Inc...... 61 Tully Construction Co...... 38 Ergonomic Group Inc...... 98 Kohn Pedersen Fox Associates ...... 104 Bartlett Dairy Inc...... 108 Plaza Construction Corp...... 58 Turtle & Hughes Inc...... 46 Fedway Associates Inc. and Affiliates ...... 33 Krasdale Foods Inc...... 39 Bayside Fuel Oil Corp...... 85 Prestige Employee Administrators Inc...... 47 Undertone ...... 99 FJC Security Services Inc...... 95 Lafayette 148 New York ...... 123 Benfield Electric Supply Co...... 122 Promotion in Motion Cos. Inc...... 82 Union Square Hospitality Group ...... 85 FreshDirect...... 49 Langan Engineering, Environmental, Bloomberg LP...... 4 Surveying and Landscape Architecture ...... 111 Publishers Clearing House ...... 29 Univision Communications Inc...... 19 Gellert Global Group...... 26 Blue Tee Corp...... 34 Liberty Maritime Corp...... 80 PURE Insurance ...... 84 Vice Media Inc...... 106 Gilt...... 43 Broadview Networks ...... 71 Loren Communications International Ltd...... 128 Quality King Distributors Inc...... 13 Vicom Computer Services Inc...... 148 Goya Foods Inc...... 24 CAN Capital ...... 27 Manhattan Beer Distributors...... 32 Rallye Motors Holding...... 28 Vista Food Exchange Inc...... 65 Great Atlantic & Pacific Tea ...... 6 CareMed Pharmaceutical Services ...... 93 Max Kahan Inc...... 60 Red Apple Group Inc...... 8 Weeks Marine Inc...... 45 Guardian Service Industries Inc...... 132 Central National-Gottesman Inc...... 11 McKissack & McKissack ...... 145 Renco Group Inc...... 8 Westcon Group Inc...... 12 Guardsmark ...... 49 Charmer Sunbelt Group ...... 7 McMurry/TMG ...... 149 Sam Ash Music Corp...... 56 Yodle ...... 115 HAKS Engineers, Architects and Clare Rose Inc...... 96 Land Surveyors...... 139 McVeigh Associates Ltd...... 136 Shevell Group of Cos...... 55 Zeta Interactive...... 147

24 | Crain’s New York Business | November 17, 2014 20141117-NEWS--0025-NAT-CCI-CN_-- 11/14/2014 2:22 PM Page 1

REPORT PRIVATELY HELD COMPANIES

business issues. “Don’t call me in … and took her distribution, she said, ferently. He claimed Ms. Elting and start f—ing with me for no rea- to pay a large tax bill. shoved him against a wall, kicked TransPerfect storm son!” Mr. Shawe wrote. Ms. Elting Fights over money escalated. In him twice in the leg and slammed the fired back,“If sharing feedback on a the summer of 2013, Mr. Shawe de- door on him.He said his feet received potential acquisition is no reason, clared a hiring and pay freeze, while “puncture wounds which are consis- Continued from Page 1 search firm Common Sense Adviso- you’re a f—ing idiot.” Ms. Elting told staffers “absolutely tent with being kicked by the pointy Ms. Elting, 48, charged Mr. ry. It is one of only a handful in the But sometimes their spats turned nothing should be put on hold.” A toe of a stiletto-heeled shoe.” Shawe, 45, with giving unauthorized industry to generate hundreds of physical, such as when Ms. Elting peace treaty was signed that August Ms.Elting and Mr.Shawe remain raises and bonuses to certain employ- millions of dollars in annual revenue, dumped almost an entire pitcher of calling for regular quarterly payouts co-CEOs even though Ms. Elting ees, threatening staffers loyal to her, the result of savvy management and water onto Mr.Shawe’s face and shirt. to the partners, who each agreed to has described the partners as “irrec- improperly blocking emails and caus- growth fueled by 20 acquisitions “Phil never moved during this whole respect the other’s turf. oncilably deadlocked.” Mr. Shawe ing her to double-pay her personal in- over the years. And even rivals de- outburst,” an employee recalled in an But nine months has offered to buy come taxes.She also said he made “in- scribe Ms. Elting and Mr. Shawe as affidavit.“Frankly,I was a bit in shock, later, war erupted. A claim of out Ms. Elting for appropriate sexual advances” toward highly complementary executives. but Phil seemed unfazed.” Ms. Elting sued Mr. $150 million. She workers at company events after She majored in French and Span- Shawe in New York ‘puncture countered with “drinking heavily.” Ms. Elting per- ish at Trinity College in Connecticut A darker turn state court this past $300 million, ac- suaded a judge to grant a temporary and is said to be a calm,astute leader. The bickering seemed to take a May,and Mr.Shawe wounds’ cording to court restraining order against Mr. Shawe She also has been widely quoted in darker turn in 2011, when Ms. sued her in documents, though this summer, and she argued he must the media, including Forbes and Elting sought to reward herself Delaware two weeks from ‘the Mr. Shawe didn’t be removed from the company be- Oprah magazines, and her home in financially during hard times. later. The following consider her figure cause his behavior has become “in- Bridgehampton, L.I., has been fea- “We haven’t gotten distributions month, he went to pointy toe serious because it creasingly erratic and dangerous.” tured in Hamptons magazine. in forever,” she emailed her account- Ms.Elting’s office to was contingent on “Both for myself and the compa- Mr. Shawe, for his part, was a ant. “When’s the next distribution?” see if she’d taken of a stiletto- lining up financing. ny I have spent my entire adult life Crain’s 40 Under 40 in 2008. Al- The accountant replied that he spoke $445,000 in cash out Neither a legal reso- building, I implore the court to pro- though he speaks no foreign lan- to Mr. Shawe, who said that “given of the company. heeled shoe’ lution nor a sale of tect us,” she said in an affidavit. guage,the University of Florida grad- the company’s current lack of profits, “Tell me right their company Mr. Shawe has his own com- uate was once a top appliance dealer making a distribution now sends the now. Did you pay a seems imminent. plaints. He charged that Ms. Elting at Sears and is said to be the transla- wrong message.” Ms. Elting replied: $445,000 dividend Even the foes’ took cash out of the company with- tion world’s salesman par excellence. “We need to take some out.” to yourself? Answer legal teams have out authorization and harassed em- TransPerfect has a reputation for It isn’t clear how badly TransPer- right now. I demand tangled, with Mr. ployees loyal to him. He even al- being able to quickly handle com- fect’s business suffered at the time, an answer,” Mr. Shawe said, accord- Shawe’s lawyers at Sullivan & leged that she injured him during an plex assignments, such as translat- but in the year after the financial cri- ing to an account Ms. Elting gave Cromwell and Kaplan Rice accus- argument in her office this past ing tax documents or medical liter- sis, revenue at a somewhat larger colleagues. Her business partner, she ing Kramer Levin Naftalis & June, causing him to seek his own ature. Its staffers are also skilled at competitor called Lionbridge Tech- added, repeated the question four Frankel of making “knowing mis- restraining order. What’s more, he localizing translations so that they nologies fell by $70 million, or 15%, times in a “very abusive manner.” representations” in its filings on be- noted that he offered to buy out Ms. read well whether audiences are in and didn’t recover fully until last year. Ms. Elting reported that she had half of Ms. Elting. A hearing on the Elting but that her “greed and vora- Paris or Port-au-Prince. In any case, in September 2012, told Mr. Shawe to get out of her of- matter is scheduled for Dec. 10. cious appetite for material posses- “For years it’s been a well-oiled Ms. Elting and her husband, who fice, but she couldn’t close the door A state judge, who described the sions” had “clouded” her view of machine,” said Don DePalma of married in 1999, paid $11.5 million because he planted his foot in the warring sides’ emails as “cursey and what the company is worth. Common Sense Advisory, a firm for their house in Bridgehampton. doorway.“I tried to move it with my miserable,” observed: “Both parties “Given [her] increasingly erratic that tracks the translation business. In April 2013, Ms. Elting took a foot and couldn’t,” she recalled, really need to reassess their manage- behavior and desire to bleed the But the machine is at risk as the $21 million distribution from adding that all the while Mr. Shawe ment abilities.” Ⅲ business dry, if any partner is not fit co-founders battle for control of the TransPerfect,which Mr.Shawe said was on the phone “giving a play-by- LISTEN to a discussion at to continue running the company,it company they started in 1992 with caused a “cash squeeze.” Ms. Elting play” to someone. CrainsNewYork.com/podcasts is Ms. Elting,” he asserted in court a borrowed computer and $5,000 in denied that she hurt the company Mr. Shawe described things dif- papers. credit-card loans. It’s a long way Ms. Elting said in from how the partners She poured court documents that have publicly de- “Fortune 100 clients” scribed their relation- almost a have pulled or threat- ship in the past. ened to pull more “We like not hav- full pitcher than $20 million in ing to answer to other business. She de- people,” Ms. Elting of water scribed TransPerfect told Inc. magazine in as “in a state of utter August 2012. “We on his face dysfunction.” Al- like that it’s just the though an internal two of us.” email said the third Behind the scenes quarter was the firm’s was a different story. best ever and annual Far from happily working together, revenue is on pace to reach $473 mil- the former lovers had come to loathe lion, Ms. Elting warned in a recent each other. Four months after that court filing that “this fortunate state breezy magazine quote, Ms. Elting of affairs cannot reasonably be ex- shot off a seething email to Mr. pected to be sustained much longer Shawe, demanding to know if he’d given the existing deadlock.” given employees gifts without men- tioning that they also came from Oh, the emails her. Yes, Mr. Shawe replied, he’d The partners seem to have pri- bought gift baskets for those who vately snapped at each for years be- attended his 2011 wedding. fore their animosity spilled out in “I said never ever ever to pay per- court. People who know them say sonally but to do it jointly from you Ms. Elting and Mr. Shawe often and me,” an enraged Ms. Elting cursed each other out; it was simply wrote. “You completely f—ed me!!!” their way of communicating. One Neither the partners nor their war of words from 2006 surfaced in lawyers would comment for this an F-bomb-filled email chain con- story,which is largely based on court tained in court documents. documents. “You are so f—ing out of line to “I feel bad for them.Theirs is the make comments about my child af- kind of struggle many of us face,” ter I confide to you. You’re actually said competitor Ken Clark, CEO of about as nasty as it gets,” Ms. Elting 1-800-Translate in New York. “It wrote to Mr. Shawe. He replied: must be humiliating for them to see “You can’t take out your personal their fight aired out in public.” frustrations on me at work … that’s TransPerfect is the fourth-largest about as nasty as [sic] gets.” company in the $35 billion global A few minutes later the conver- translation business,according to re- sation switched from personal to

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PLLC upon whom process against it person, files an application for process may be served and shall as agent of LLC upon whom process SSNY designated as agent of the may be served. SSNY shall mail insurance or statement of claim mail copy of process against LLC to: against it may be served. SSNY shall LLC upon whom process against it copy of process to the PLLC, 6 E. containing any materially false c/o Sabin, Bermant & Gould LLP, 4 mail process to the LLC at the addr. of may be served. SSNY shall mail 39th Street, Suite 700, New York, NY Times Square, NY NY 10036 Attn: information, or conceals for the its princ. office. Purpose: Any lawful copy of process to the LLC, 250 E. 10016. Purpose: For the practice of Managing Partner. Principal business activity. 53rd Street, Apt. 2303, New York, NY the profession of Law. purpose of misleading, address: 655 Park Ave, NY NY 10022. Purpose: Any lawful purpose. information concerning any fact 10065. Purpose: any lawful act. Notice of Formation of Alucia Notice of Formation of Green Pear material there-to, commits a Productions, LLC. Arts. of Org. filed Notice of Formation of CALIGOR Properties LLC. Arts. of Org. filed Notice of Formation of Grid Urban fraudulent insurance act, which with Secy. of State of NY (SSNY) on PHARMACY, LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on Ventures II, LLC. Arts. of Org. filed with 10/3/14. Office location: NY County. with Secy. of State of NY (SSNY) on 8/21/14. Office location: NY County. is a crime and shall also be Secy. of State of NY (SSNY) on SSNY designated as agent of LLC 10/23/14. Office location: NY County. SSNY designated as agent of LLC subject to a civil penalty not to 09/01/00. Office location: NY County. upon whom process against it may SSNY designated as agent of LLC upon whom process against it may SSNY designated as agent of LLC upon exceed five thousand dollars and be served. 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Amalgamated Life Notice of Formation of 2403 EAST Notice of formation of Kavita Sharma, Office location: NY County. SSNY 13TH OWNER LLC. Arts. of Org. filed filed with Secy. of State of NY (SSNY) Insurance Company on 10/31/14. Office location: NY MD, PLLC. Arts. of Org. filed with designated as agent of LLC upon with Secy. of State of NY (SSNY) on Sec’y of State of NY (SSNY) on whom process against it may be 333 Westchester Avenue 11/05/14. Office location: NY County. County. Princ. office of LLC: 360 White Plains, NY 10604 Lexington Ave., 2nd Fl., NY, NY 10017. 8/4/14. Office location: NY County. served. SSNY shall mail process to c/o Princ. office of LLC: 295 Madison Ave., SSNY designated as agent of PLLC 800-624-5844 SSNY designated as agent of LLC Deborah A. Nilson & Associates, PLLC, 2nd Fl., NY, NY 10017. SSNY desig- upon whom process against it may be 10 E. 40th St., Ste. 3310, NY, NY nated as agent of LLC upon whom upon whom process against it may be served. 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SSNY shall mail process LLC. Arts of Org filed with Secy of on 09/12/14. Off. loc.: New York Co. Secy. of State of NY (SSNY) on whom process against it may be to the LLC, Ronnie Livia, 400 E. 56th State of NY (SSNY)1/4/13. Office SSNY designated as agent of LLC 6/27/14. Office location: NY County. served. SSNY shall mail copy of St., Apt. 5B, NY, NY 10022. Purpose: location: NY County. SSNY designated upon whom process may be served. SSNY designated as agent of LLC upon proc. to NRAI, 111 Eighth Ave., NY, Any lawful activity. agent upon whom process may be SSNY shall mail process to 10 W 47th whom process against it may be NY 10011, the Reg. Agt. upon whom served and shall mail copy of St., Ste. 501, New York, NY 10036. served. SSNY shall mail process to: proc. may be served. DE off. addr.: process against LLC to: Corp Service NES DEVELOPMENT LLC, Arts. of Org. Purpose: General. c/o Castellan Real Estate Partners, 160 Greentree Dr., Ste. 101, Dover, Company, 80 State St, Albany, NY 1841 Broadway, Ste. 400, NY, NY DE 19904. Cert. of Form. on file: filed with the SSNY on 11/06/2014. 12207. Principal business address: Office loc: NY County. SSNY has Notice of Qual. of HighBrook Income 10023. Purpose: any lawful activity. SSDE, Townsend Bldg., Dover, DE 56 W. 22nd St, 2nd Flr, NY NY 19901. Purp.: any lawful activities. been designated as agent upon 10010. Purpose: any lawful act. Property Fund II, LP, Auth. filed Sec'y whom process against the LLC may of State (SSNY) 3/4/14. Office loc.: JONATHAN CLEMENTS LLC, Arts. of be served. SSNY shall mail process NY County. LP org. in DE 1/8/14. Org. filed with the SSNY on ASHAP REALTY LLC. Art. of Org. filed to: 20 W. 33rd St., 6th Flr., NY, NY 840 FULTON CAD, LLC, Arts. of Org. SSNY desig. as agent of LP upon 10/03/2014. Office loc: NY County. with the SSNY on 09/03/14. Office: New 10001. Reg. Agent: Larry Katz, 20 W. filed with the SSNY on 09/23/2014. whom process against it may be SSNY has been designated as agent York County. SSNY designated as 33rd St., 6th Flr., NY, NY 10001 Office loc: NY County. SSNY has served. SSNY shall mail copy of upon whom process against the LLC agent of the LLC upon whom process Purpose: Any Lawful Purpose. been designated as agent upon proc. to 680 Fifth Ave., 19th Fl., NY, may be served. SSNY shall mail against it may be served. SSNY shall whom process against the LLC may NY 10019. DE off. addr.: CSC, 2711 process to: Jonathan Clements, 380 mail copy of process to the LLC, 152 JW PROPERTIES & DESIGN LLC, be served. SSNY shall mail process Centerville Rd., Wilmington, DE Lenox Ave Apt 6G, NY, NY 10027. E. 65th Street, New York, NY 10065. Arts. of Org. filed with the SSNY on to: C/O The Daten Group, Inc. Attn: 19808. Cert. of LP on file: SSDE, Purpose: Any Lawful Purpose. Purpose: Any lawful purpose. 11/12/2014. Office loc: NY County. David Ennis, 444 Madison Ave, Ste Townsend Bldg., Dover, DE 19901. 510, NY, NY 10022. Purpose: Any SSNY has been designated as agent Name/addr. of each gen. ptr. avail. at Notice of Qualification of MILLSTEIN Notice of Qualification of Century Golf Lawful Purpose. upon whom process against the LLC SSNY. Purp.: any lawful activities. REAL ESTATE CO. LLC. Authority Management, LLC. Authority filed may be served. SSNY shall mail filed with Secy. of State of NY (SSNY) with NY Dept. of State on 10/10/14. process to: Joy Wayne, 325 E. 57th Notice of Qualification of DIGITAL Notice of Qualification of ZIFF CAPITAL on 10/31/14. Office location: NY Office location: NY County. Princ. St., Apt. 6B, NY, NY 10022. Purpose: BRAND EXPRESSIONS, L.L.C. PARTNERS, LLC. Authority filed with County. LLC formed in Delaware (DE) bus. addr.: 3 Lincoln Centre, 5430 Any Lawful Purpose. Authority filed with Secy. of State of NY Secy. of State of NY (SSNY) on on 11/15/13. Princ. office of LLC: LBJ Fwy., Ste. 1400, Dallas, TX (SSNY) on 10/21/14. Office location: 11/07/14. Office location: NY County. 1717 Pennsylvania Ave. NW, Ste. 75240. LLC formed in DE on 6/24/14. 73 WASHINGTON PLACE, LLC. App. NY County. LLC formed in New LLC formed in Delaware (DE) on 333, Washington, DC 20006. SSNY NY Sec. of State designated agent of for Auth. filed with the SSNY on Jersey (NJ) on 12/20/01. Princ. office 11/05/14. SSNY designated as agent designated as agent of LLC upon LLC upon whom process against it 09/11/14. Originally filed with the of LLC and NJ addr. is: 101 Morgan of LLC upon whom process against whom process against it may be may be served and shall mail Secretary of State of Delaware on Ln., Ste. 203B, Plainsboro, NJ 08536. it may be served. SSNY shall mail served. SSNY shall mail process to process to: c/o CT Corporation 09/10/14. Office: New York County. SSNY designated as agent of LLC process to c/o Corporation Service the LLC, Attn: General Counsel, 40 System, 111 8th Ave., NY, NY 10011, SSNY designated as agent of the upon whom process against it may Co. (CSC), 80 State St., Albany, NY E. 52nd St., 20th Fl., NY, NY 10022. regd. agent upon whom process may LLC upon whom process against it be served. SSNY shall mail process 12207-2543. DE addr. of LLC: CSC, DE addr. of LLC: 2711 Centerville be served. DE addr. of LLC: c/o The may be served. SSNY shall mail to the LLC at the princ. office of the 2711 Centerville Rd., Ste. 400, Rd., Ste. 400, Wilmington, DE 19808. Corporation Trust Co., 1209 Orange copy of process to the LLC, c/o The LLC. Arts. of Org. filed with State Wilmington, DE 19808. Arts. of Org. Arts. of Org. filed with DE Secy. of St., Wilmington, DE 19801. Cert. of Carlyle Group, 520 Madison Avenue, Treasurer, 33 W. State St., Fifth Fl., filed with DE Secy. of State, Div. of State, Div. of Corps., 401 Federal St., Form. filed with DE Sec. of State, New York, NY 10022. Purpose: Any Trenton, NJ 08646. Purpose: Any Corps., 401 Federal St., Dover, DE Ste. 4, Dover, DE 19901. Purpose: 401 Federal St., Dover, DE 19901. lawful purpose. lawful activity. 19901. Purpose: Any lawful activity. Any lawful activity. Purpose: all lawful purposes.

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Notice of Qualification of 33-39 East NOTICE OF FORMATION OF LIMITED Notice of Qualification of DMR Holding Notice of Formation of Limited Notice of Qualification of Capital 60th LLC. Authority filed with NY Dept. LIABILITY COMPANY. NAME: Group LLC. Authority filed with Secy. Liability Company (LLC). Name: ART Group Alternative Strategies Feeder of State on 8/21/14. Office location: PRESTIGE IRON WORKS, LLC. of State of NY (SSNY) on 09/30/14. ON AVENUE A LLC. Articles of Fund, LP. Authority filed with NY Dept. NY County. LLC formed in DE on Articles of Organization were filed with Office location: NY County. LLC Organization filed by the Department of State on 10/30/13. Office location: 8/18/14. NY Sec. of State designated the Secretary of State of New York formed in Delaware (DE) on 08/26/14. of State of New York on: 06/09/2014. NY County. LP formed in DE on agent of LLC upon whom process (SSNY) on 01/17/14. Office location: SSNY designated as agent of LLC Office location: County of New York. 4/23/13. NY Sec. of State designated against it may be served and shall mail New York County. SSNY has been upon whom process against it may be Purpose: any and all lawful activities. agent of LP upon whom process process to: c/o Solil Management, designated as agent of the LLC upon served. SSNY shall mail process to: Secretary of State of New York (SSNY) against it may be served and shall mail 640 5th Ave., 3rd Fl., NY, NY 10019, whom process against it may be National Registered Agents, Inc., 111 designated as agent of LLC upon whom process to the principal business principal business address. DE served. SSNY shall mail a copy of Eighth Ave., NY, NY 10011, also the process against it may be served. addr.: c/o Blackstone Alternative address of LLC: c/o National process to the LLC, 18-21 126th registered agent. Address to be SSNY shall mail a copy of process to: Asset Management L.P., 345 Park Corporate Research, Ltd., 615 S. Street, College Point, New York 11356. maintained in DE: National Registered c/o Wendy E. Scripps Trust, Richard Ave., NY, NY 10154. DE addr. of LP: DuPont Hwy., Dover, DE 19901. Cert. Purpose: For any lawful purpose. Agents, Inc., 160 Greentree Dr., Ste. E. Feldman, Trustee, 7 Penn Plaza, National Corporate Research, Ltd., of Form. filed with DE Sec. of State, 101, Dover, DE 19904. Arts of Org. Suite 900, New York, NY 10001. 615 S. DuPont Hwy., Dover, DE 19901. Townsend Bldg., Dover, DE 19903. NY 469 LLC, a domestic LLC, filed filed with the DE Secy. of State, 401 Name/addr. of genl. ptr. available Purpose: any lawful activity. with the SSNY on 9/18/14. Office Federal St., Ste. 4, Dover, DE 19901. Notice of formation of Carol Farah from NY Sec. of State. Cert. of LP location: New York County. SSNY is Purpose: any lawful activities. NYC Studio, LLC Arts. of Org. filed filed with DE Sec. of State, 401 NOTICE OF FORMATION OF MS Sub designated as agent upon whom with the Sect'y of State of NY (SSNY) Federal St., Dover, DE 19901. W50, LLC. Arts of Org filed with Secy process against the LLC may be LITTLE DIGITAL CO., LLC, a domestic on 9/25/2014. Office location, County Purpose: any lawful activity. of State of NY (SSNY) 10/11/13. served. SSNY shall mail process to LLC, filed with the SSNY on 10/8/13. of New York. SSNY has been Office location: NY County. SSNY The LLC, 38 W. 34th St., 3rd Fl., NY, Office location: New York County. designated as agent of the LLC Notice of Formation of GRO DEV designated agent upon whom process NY 10001. General Purposes. SSNY is designated as agent upon upon whom process against it may Leasehold LLC, Art. of Org. filed may be served and shall mail copy of whom process against the LLC may be served. SSNY shall mail process Sec'y of State (SSNY) 6/9/14. Office process against LLC to:Corp Service Notice of Formation of CHELSEA be served. SSNY shall mail process to: 250 W. 90th St., #3H, NY, NY location: NY County. SSNY designated Company, 80 State St, Albany, NY PHOENIX LLC. Arts. of Org. filed with to The LLC, c/o Abigail Stock, 160 10024. Purpose: any lawful act. as agent of LLC upon whom process 12207. Principal business address: Secy. of State of NY (SSNY) on Claremont Ave., Apt. 4I, NY, NY against it may be served. SSNY shall 10027. General Purposes. mail copy of process to Ari Bromberg 135 W. 50th St, NY NY 10020. 08/18/14. Office location: NY County. Notice of Formation of BLOOMSTONE Purpose: any lawful act. SSNY designated as agent of LLC GRO Dev., 521 W. 26th St., NY, NY REALTY LLC. Arts. of Org. filed with 10001. Purpose: any lawful activities. upon whom process against it may be Notice of Formation of Greenberg & Secy. of State of NY (SSNY) on Notice of Formation of NIKI LIFESTYLE, served. SSNY shall mail process to the Kaplan, LLP. Arts of Org filed with 10/08/14. Office location: NY County. LLC, 568 Broadway, Rm. 401, NY, NY the Secy of State of NY (SSNY) RUBBLE KINGS, LLC, Arts. of Org. LLC. Arts. of Org. filed with Secy. of SSNY designated as agent of LLC upon filed with the SSNY on 01/25/2013. State of NY (SSNY) on 11/04/14. 10012. Purpose: Any lawful activity. 7/23/14. Office location: New York whom process against it may be served. County. SSNY designated agent Office loc: NY County. SSNY has Office location: NY County. SSNY SSNY shall mail process to c/o Ingram been designated as agent upon whom designated as agent of LLC upon Notice of Formation of CSA Realty upon whom process may be served Yuzek Gainen Carroll & Bertolotti LLP, and shall mail copy of process process against the LLC may be whom process against it may be Associates, LLC. Arts. of Org. filed 250 Park Ave., 6th Fl., NY, NY 10177. served. SSNY shall mail process to: served. SSNY shall mail process to with Secy. of State of NY (SSNY) on against LLP to principal business Purpose: Any lawful activity. address: 380 Lexington Avenue, 17th 609 Greenwich St. 8th Fl, NY, NY Corporation Service Co., 80 State St., 9/18/14. Office location: NY County. 10014. Purpose: Any Lawful Purpose. Albany, NY 12207, regd. agent upon SSNY designated as agent of LLC floor, New York, New York 10168-1700. Notice of Formation of GPF NA, LLC. Purpose: any lawful act. whom and at which process may be upon whom process against it may be Arts. of Org. filed with Secy. of State GREER NUTTALL LLC, Arts. of Org. served. Purpose: Any lawful activity. served. SSNY shall mail process to: of NY (SSNY) on 10/1/14. Office filed with the SSNY on 10/27/2014. COROSSOL FIKA TOWER LLC, Arts. The LLC, 119 Fifth Ave., Ste. 701, NY, location: NY County. SSNY designated Office loc: NY County. SSNY has of Org. filed with the SSNY on NY 10003. Purpose: any lawful activity. as agent of LLC upon whom process been designated as agent upon Notice of Formation of BLEE DESIGN, 09/02/2014. Office loc: NY County. LLC. Arts. of Org. filed with Secy. of against it may be served. SSNY shall whom process against the LLC may PISTOL HAUTE JEWELS, LLC, a SSNY has been designated as agent State of NY (SSNY) on 10/09/14. mail process to: c/o Cooley LLP, 1114 be served. SSNY shall mail process domestic LLC, filed with the SSNY upon whom process against the LLC Office location: NY County. SSNY Avenue of the Americas, 46th Fl., NY, to: 169 E 69th St., Apt. 2A, NY, NY on 7/21/14. Office location: New York may be served. SSNY shall mail designated as agent of LLC upon NY 10036, Attn: Shira Nadich Levin, 10021. Purpose: Any Lawful Purpose County. SSNY is designated as agent process to: Lars Akerlund , 66 Pearl whom process against it may be Esq. Purpose: any lawful activity. upon whom process against the LLC St., NY, NY 10004. Reg. Agent: Lars served. SSNY shall mail process to may be served. SSNY shall mail Akerlund , 66 Pearl St., NY, NY 10004. Notice of Formation of 116 Development Corporation Service Co., 80 State St., process to c/o United States Purpose: Any Lawful Purpose. Notice of Formation of 1384 Madison LLC. Arts. of Org. filed with Secy. of Albany, NY 12207-2543. Purpose: Corporation Agents, Inc., 7014 13th Street LLC. Arts. of Org. filed with State of NY (SSNY) on 10/23/14. Any lawful activity. Ave., Ste. 202, Brooklyn, NY 11228. Secy. of State of NY (SSNY) on Office location: NY County. SSNY Formation notice of the limited liablity 10/16/14. Office location: NY County. designated as agent of LLC upon whom General Purposes. company (LLC). Name: JBR CONSULTING Notice of VODKACLEANSE, LLC. Arts. SSNY designated as agent of LLC process against it may be served. SSNY GROUP, LLC. Articles of Organization upon whom process against it may shall mail process to: c/o The LLC, of Org. filed with the Sect'y of State of SOUTH SALEM OWNERS LLC. Art. filed with the NY Secretary of State be served. SSNY shall mail process 245 E. 63rd St., Ste. 1101, NY, NY NY (SSNY) on 9/22/2014 under the of Org. filed with the SSNY on (SSNY): August 22, 2014. Office: New to: The LLC, 61-20 Grand Central 10065. Purpose: any lawful activity. name VodkaCleanse 2 LLC. Office 10/02/14. Office: New York County. York County. SSNY designated as Pkwy., Forest Hills, NY 11375. location, County of New York. SSNY SSNY designated as agent of the agent of the LLC upon whom process has been designated as agent of the Purpose: any lawful purpose. NEIGHBORHOOD PRACTICE MANAGE- LLC upon whom process against it against it may be served. SSNY shall MENT ASSOCIATES LLC, a domestic LLC upon whom process against it may may be served. SSNY shall mail mail copy of process to 610 West End be served. SSNY shall mail process LLC, filed with the SSNY on 9/30/14. copy of process to the LLC, 62 West Avenue, Apartment 11B, New York, NY 78 REALTY NY LLC, Arts of Org filed Office location: New York County. to: The LLC, 459 W. 21st St., NY NY 45th Street, 8th Flr, New York, NY 10024. Purpose: All lawful purposes. with SSNY on 09/29/14. Off Loc: New 10011. Purpose: any lawful act. SSNY is designated as agent upon 10036. Purpose: Any lawful purpose. York County, SSNY designated as whom process against the LLC may Notice of Qualification of BRYANT agent of LLC upon whom process be served. SSNY shall mail process to Notice of Qualification of Brooklyn LW Notice of Qualification of IHP PARK FINANCE MANAGER, LLC. against it may be served. SSNY shall The LLC, 39 W. 14th St., Ste. 506, NY, Lease Corporation, LLC. Authority POUGHKEEPSIE (NY) OWNER, LLC. Authority filed with Secy. of State of NY mail a copy of process to: The LLC, NY 10011. General Purposes. filed with NY Dept. of State on Authority filed with Secy. of State of NY (SSNY) on 10/30/14. Office location: 341 E. 78th St., New York, NY 10075. 10/14/14. Office location: NY County. (SSNY) on 10/09/14. Office location: NY County. LLC formed in Delaware Purpose: to engage in any lawful act. Notice of Qual. of North 6th Mezz LLC formed in KS on 6/24/13. NY Sec. NY County. LLC formed in Delaware (DE) on 10/17/14. Princ. office of LLC: Funding LLC, Auth. filed Sec'y of of State designated agent of LLC (DE) on 07/14/14. SSNY designated One Bryant Park, 38th Fl., NY, NY Notice of Formation of BICOM NY, LLC. State (SSNY) 7/30/14. Office loc.: NY upon whom process against it may as agent of LLC upon whom process 10036. SSNY designated as agent of Arts. of Org. filed with Secy. of State County. LLC org. in DE 7/29/14. be served and shall mail process to: against it may be served. SSNY shall LLC upon whom process against it of NY (SSNY) on 09/18/14. Office SSNY desig. as agent of LLC upon c/o National Registered Agents, Inc., mail process to c/o Corporation may be served. SSNY shall mail location: NY County. Princ. office of whom process against it may be 111 8th Ave., NY, NY 10011, regd. Service Co. (CSC), 80 State St., process to the LLC at the princ. office LLC: 823 11th Ave., NY, NY 10019. served. SSNY shall mail copy of agent upon whom process may be Albany, NY 12207-2543. DE addr. of of the LLC. DE addr. of LLC: The SSNY designated as agent of LLC proc. to NRAI, 111 Eighth Ave., NY, served. KS and principal business LLC: c/o CSC, 2711 Centerville Rd., Corporation Trust Co., Corp. Trust upon whom process against it may be NY 10011, the Reg. Agt. upon whom address: 8100 E. 22nd St. North, Ste. 400, Wilmington, DE 19808. Arts. Center, 1209 Orange St., Wilmington, served. SSNY shall mail process to proc. may be served. DE off. addr.: Bldg. 500, Wichita, KS 67226. Cert. of Org. filed with Secy. of State, Div. DE 19801. Arts. of Org. filed with DE Joseph S. Aboyoun, Esq., Aboyoun 160 Greentree Dr., Ste. 101, Dover, of Org. filed with KS Sec. of State, of Corps., John G. Townsend Bldg., Secy. of State, John G. Townsend & Heller, L.L.C., 77 Bloomfield Ave., DE 19904. Cert. of Form. on file: 120 SW 10th Ave., Topeka, KS 401 Federal St. - Ste. 4, Dover, DE Bldg., 401 Federal St., Ste. 4, Dover, DE Pine Brook, NJ 07058. Purpose: SSDE, Townsend Bldg., Dover, DE 66612. Purpose: all lawful purposes. 19901. Purpose: Any lawful activity. 19901. Purpose: Asset management. Automotive sales/service. 19901. Purp.: any lawful activities.

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November 17, 2014 | Crain’s New York Business | 27 20141117-NEWS--0028-NAT-CCI-CN_-- 11/14/2014 3:22 PM Page 1

IN THE BOROUGHS BROOKLYN IN THE RAW: Raaka Chocolate co-owner Nathan Hodge waxes poetic about the flavor City’s land of chocolate of his bars made with unroasted cocoa beans. Continued from Page 3 COCOA NUTS lavor of those from Bolivia. vors, superior ingredients and Daniel Sklaar, the 33-year-old community-mindedness. And Ⅲ Boerum Hill: Nunu Chocolates owner of Williamsburg-based Fine they’re earning recognition, show- Ⅲ Cobble Hill: The Chocolate & Raw, touts the health benefits of casing their delectables everywhere Room (also in Park Slope) dark and raw chocolate.“We are in an from the Northwest Chocolate Fes- incredibly food-conscious time, and Ⅲ tival in Seattle, to the shelves of na- Marine Park: if you’re into organic, locally crafted tional retailers like Whole Foods. JoMart Chocolates things, we offer something that’s rel- Their bars can be pricey, selling for Ⅲ Red Hook: Raaka Chocolate, evant,” he said. $7 to $10 each. Cacao Prieto Other makers are going in a dif- Ⅲ Sunset Park: ferent direction. Aerospace engineer Barring impostors Li-Lac Chocolates, turned chocolatier Daniel Preston is “Chocolate follows the coolness Tumbador Chocolate, focused on re-engineering the and excitement of the Brooklyn Jacques Torres Chocolate process from beginning to end.As the brand,” said Carlo Scissura, chief Ⅲ founder of Red Hook’s Cacao Prieto, buck ennis executive of the borough’s chamber of Williamsburg: he set up a growers’cooperative on his commerce,a body that has gone so far Fine & Raw Chocolate, family’s cacao farm in the Dominican good, I don’t want to eat it.” described “son of a candy-maker” as to create a “Brooklyn-Made”certi- Mast Brothers Chocolate Republic and experimented with new Meanwhile, long before virgin who runs JoMart Chocolates, a fication program to guard against drying and fermenting techniques. chocolate or even Jacques Torres, business started by his father. Al- impostors. Cacao Prieto all fit that mold. He even redesigned most of the Brooklyn nurtured homegrown though the new crowd represents Already there is a big enough There are even sub-movements: cacao-processing equipment. chocolate makers including Marine competition, he says everyone ben- batch of chocolatiers out there for Upstarts Raaka and Fine & Raw are Park-based JoMart Chocolate, efits from the attention. different philosophies to emerge, further challenging tradition by re- Not just Jacques Torres founded in 1946. Another old- “I haven’t seen anyone try to cap- making for a bittersweet competi- fusing to roast their beans.They bill In short, Brooklyn’s chocolate school company,Li-Lac Chocolates, italize on Brooklyn and make a tion.One group of producers has em- their bars as unroasted, or “virgin.” makers have come a long way since was founded in 1923 in Manhattan bunch of crappy chocolate, and that braced the “bean-to-bar”movement. “We want to showcase the natural Mr. Torres, who maintains a small but has since moved its factory to pleases me,” he said. JoMart uses They get their beans directly from raw flavor of the bean,” said Nathan bean-to-bar operation but prefers to Sunset Park. After decades of plug- Belgian chocolate but makes all its cacao farmers—preferably in a coop- Hodge, 27, co-owner and head import most of his chocolate from ging along without fanfare, they find fillings from scratch and hand-dips erative or other socially conscious chocolate maker at Red Hook-based Belgium. But he, too, is a fanatic themselves in the middle of a every piece. arrangement. They then process or Raaka,a man who waxes poetic about about the flavor and quality of his in- nouveau-chocolate movement. Some of the young up-and- roast the beans themselves,create the notes of spicy clove in beans from the gredients. And though he’s happy to “I’m super-impressed by the cre- comers even came to him for advice chocolate bars and frequently design Dominican Republic, the acidity and buy organic, there are limits. ativity and the passion I’m seeing in before launching their businesses. their own wrapping paper. Mast hints of citrus in beans from Mada- “I get it, the whole raw organic the new guys in the market,” said “After 40 years of doing this, all Brothers, Raaka, Fine & Raw and gascar and the mushroomy, umami f thing,”he said.“But if it doesn’t taste Michael Rogak, 62, the self- of a sudden I became hip,” he said. Ⅲ

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM PUBLIC & LEGAL NOTICES Notice of Qual. of North 6th Funding Notice of Qual. of HighBrook Income NOTICE OF FORMATION OF TROY Notice of Qualification of 697 Fifth/2 Notice of Qual. of VS 125 LLC, Auth. LLC, Auth. filed Sec'y of State (SSNY) Property Fund II GP, LLC, Auth. filed GORDON LLC. ARTICLES OF ORG East 55th Street Manager LLC. filed Sec'y of State (SSNY) 6/13/14. 7/30/14. Office loc.: NY County. LLC Sec'y of State (SSNY) 2/26/14. Office filed with Secy of State of NY (SSNY) Authority filed with NY Dept. of State Office loc.: NY County. LLC org. in org. in DE 7/29/14. SSNY desig. as loc.: NY County. LLC org. in DE on 08/15/2014. Office location: NEW on 10/2/14. Office location: NY County. DE 5/6/14. SSNY desig. as agent of agent of LLC upon whom process 1/8/14. SSNY desig. as agent of LLC YORK County. SSNY has been Princ. bus. addr.: 210 Route 4 East, LLC upon whom process against it against it may be served. SSNY shall upon whom process against it may designated as agent upon whom Paramus, NJ 07652. LLC formed in DE may be served. SSNY shall mail mail copy of proc. to NRAI, 111 Eighth be served. SSNY shall mail copy of process may be served and shall mail on 9/30/14. NY Sec. of State designat- copy of proc. to SHVO, 724 Fifth Ave., NY, NY 10011, the Reg. Agt. proc. to 680 Fifth Ave., 19th Fl., NY, a copy of any process against LLC to ed agent of LLC upon whom process Ave., NY, NY 10019. DE off. addr.: upon whom proc. may be served. DE NY 10019. DE off. addr.: CSC, 2711 principal business address: 201 W. against it may be served and shall mail 160 Greentree Dr., Ste. 101, Dover, off. addr.: 160 Greentree Dr., Ste. 101, Centerville Rd., Wilmington, DE 74th St., Apt.7B, NY, NY 10023. process to: c/o CT Corporation DE 19904. Cert. of Form. on file: Dover, DE 19904. Cert. of Form. on 19808. Cert. of Form. on file: SSDE, Purpose: any lawful act or activity. System, 111 8th Ave., NY, NY 10011, SSDE, Townsend Bldg., Dover, DE file: SSDE, Townsend Bldg., Dover, DE Townsend Bldg., Dover, DE 19901. regd. agent upon whom process may 19901. Purp.: any lawful activities. 19901. Purp.: any lawful activities. Purp.: any lawful activities. RLNYC Group, LLC. Arts. of Org. filed be served. DE addr. of LLC: 1209 with Secy. of State of NY (SSNY) on Orange St., Wilmington, DE 19801. Teres Enterprises LLC. Articles of Notice of Formation of 55 W 19 LLC. Notice of Qualification of 726 Eighth 09/18/14. Off. loc.: NY Co. SSNY des. Cert. of Form. filed with DE Sec. of Org. Filed NY Sec. of State (SSNY) Arts. of Org. filed with Secy. of State of LLC. Authority filed with NY Dept. of as agent of LLC upon whom process State, 401 Federal St., Dover, DE 2/27/12. Office in New York Co. NY (SSNY) on 10/1/14. Office location: State on 10/2/14. Office location: NY may be served. SSNY shall mail pro- 19901. Purpose: any lawful activity. SSNY desig. agent of LLC upon NY County. SSNY designated as agent County. LLC formed in DE on 9/10/14. cess to c/o Audrey Heffernan Meyer, whom process may be served. SSNY of LLC upon whom process against it NY Sec. of State designated agent of 1 Lexington Ave., Apt. 11A, New Notice of Formation of Veloce Air shall mail copy of process to PO Box may be served. SSNY shall mail LLC upon whom process against it York, NY 10010. Purpose: General. Services LLC. Arts. of Org. filed with 4668, #63849, New York, NY 10163. process to: c/o Homestate Properties, may be served and shall mail process NY Dept. of State on 10/17/14. Office Purpose: Any lawful activity. 261 W. 35th St., Ste. 201, NY, NY to: c/o CT Corporation System, 111 28 REALTY NY LLC, Arts of Org filed location: NY County. Princ. bus. addr.: 10001. Purpose: any lawful activity. 8th Ave., NY, NY 10011, regd. agent with SSNY on 09/29/14. Off Loc: New 176 7th Ave. #1B, NY, NY 10011. Sec. 62 EDGECOMBE AVE LLC. Art. of Org. upon whom process may be served. York County, SSNY designated as of State designated agent of LLC filed with the SSNY on 07/02/14. Office: BLEU SKYE IDEAS LLC, a domestic DE addr. of LLC: 1209 Orange St., agent of LLC upon whom process upon whom process against it may New York County. SSNY designated LLC, filed with the SSNY on 4/16/14. Wilmington, DE 19801. Cert. of Form. against it may be served. SSNY shall be served and shall mail process to: as agent of the LLC upon whom Office location: New York County. filed with DE Sec. of State, 401 mail a copy of process to: The LLC, c/o CT Corporation System, 111 8th process against it may be served. SSNY is designated as agent upon Federal St., Dover, DE 19901. 52 East End Ave., #28A, New York, Ave., NY, NY 10011, regd. agent SSNY shall mail copy of process to the whom process against the LLC may Purpose: all lawful purposes. NY 10028. Purpose: to engage in upon whom process may be served. LLC, 60 Paine Street, Lindenhurst, NY be served. SSNY shall mail process any lawful act. Purpose: all lawful purposes. 11757. Purpose: Any lawful purpose. to The LLC, 203 W. 90th St., 10C, Notice of Qualification of King NY, NY 10024. General Purposes. Commercial Finance LLC. Authority Notice of Qualification of CityBridge, Notice of Qualification of 33-39 60th Notice of Qualification of Coleman filed with NY Dept. of State on LLC. Authority filed with Secy. of State Street LLC. Authority filed with NY Dept. Floor, LLC. Authority filed with NY Dept. Notice of Qualification of Albaugh, LLC. 10/14/14. Name amended to of NY (SSNY) on 10/16/14. Office of State on 8/21/14. Office location: of State on 8/7/2014. Office location: Authority filed with NY Dept. of State Commercial Industrial Finance, LLC. location: NY County. LLC formed in NY County. LLC formed in DE on NY County. Princ. bus. addr.: 8020 on 9/22/2014. Office location: NY Office location: NY County. LLC Delaware (DE) on 07/14/14. SSNY 8/18/14. NY Sec. of State designated Arco Corporate Dr., Ste. 400, Raleigh, County. LLC formed in IA on 12/4/1991. formed in MO on 10/25/06. NY Sec. designated as agent of LLC upon agent of LLC upon whom process NC 27617. LLC formed in DE on NY Sec. of State designated agent of State designated agent of LLC upon whom process against it may be against it may be served and shall mail 12/22/1966. NY Sec. of State desig- of LLC upon whom process against whom process against it may be served. SSNY shall mail process to process to: c/o Solil Management, nated agent of LLC upon whom it may be served and shall mail served and shall mail process to: CT c/o Corporation Service Co., 80 640 5th Ave., 3rd Fl., NY, NY 10019, process against it may be served and process to: CT Corporation System, Corporation System, 111 8th Ave., NY, State St., Albany, NY 12207-2543. principal business address. DE shall mail process to: CT Corporation 111 8th Ave., NY, NY 10011. IA and NY 10011. MO and principal business DE addr. of LLC: 2711 Centerville address of LLC: c/o National System, 111 8th Ave., 13th Fl., NY, principal business address: 1525 NE addr.: 10024 Office Center Ave., Ste. Rd., Ste. 400, Wilmington, DE 19808. Corporate Research, Ltd., 615 S. NY 10011. DE addr. of LLC: 1209 36th St., Ankeny, IA 50021. Cert. of 150, St. Louis, MO 63128. Cert. of Arts. of Org. filed with DE Secy. of DuPont Hwy., Dover, DE 19901. Cert. Orange St., Wilmington, DE 19801. Org. filed with IA Sec. of State, 321 Org. filed with MO Sec. of State, 600 State, The John G. Townsend Bldg., of Form. filed with DE Sec. of State, Cert. of Form. filed with DE Sec. of E. 12th St., Des Moines, IA 50319. W. Main St., Jefferson City, MO 401 Federal St., Ste. 4, Dover, DE Townsend Bldg., Dover, DE 19903. State, 401 Federal St., Dover, DE Purpose: all lawful purposes. 65101. Purpose: all lawful purposes. 19901. Purpose: Any lawful activity. Purpose: any lawful activity. 19901. Purpose: all lawful purposes.

28 | Crain’s New York Business | November 17, 2014 20141117-NEWS--0029-NAT-CCI-CN_-- 11/14/2014 2:12 PM Page 1

FOR THE RECORD

a.m. on Nov. 24 for the planting of new The international sports and at 1200 Madison Ave. The upscale and replacement street trees in Brooklyn. entertainment management company Scotland-based knitwear company’s ABOUT THIS SECTION Bid documents are available for a fee of will double the size of its current office store is its first U.S. location. The tenant FOR THE RECORD is a weekly listing of information from the public record $25 in the Blueprint Room, Room 64, space at 235 Park Ave. South and was represented by Robin Abrams and that can help businesspeople in the New York area find opportunities, Olmsted Center, Flushing Meadows occupy the entire 16th floor of the Alan Victor of Lansco, while the Corona Park, Queens, from 8 a.m. to 3 building. The tenant was represented by landlord, 1200 Tenant Corp., was potential new clients and updates on competitors. p.m.The fee is payable by company Cushman and Wakefield’s John Picco, represented by Beth Rosen of RKF and To ask questions or get more information on this section, contact check or money order to the City of New David Stockel and Peter Van Duyne, Marc Yassky of Shopco Properties. The Crain’s research department at [email protected]. York, Parks & Recreation, with the while the landlord, Feil Organization, asking rent and length of the lease were company name, address and telephone was represented by David Turino in- not disclosed. number as well as the project contract house. The asking price was in the high number (BG-115M) on the check or $50s per square foot. The length of the NEW IN TOWN Southern and Eastern Districts of New money order.To make inquiries, contact lease was not disclosed. STOCK TRANSACTIONS York. Information was obtained from U.S. Michael Shipman at (718) 760-6771 or Companies that would like to have details Bankruptcy Court records available on michael.shipman @parks.nyc.gov. ● The Law Offices of Grinberg & Segal Following are recent insider transactions at of openings published should submit Public Access to Court Electronic Records. signed a 10-year lease for 3,800 square New York’s largest publicly held companies descriptions following this format to Listings are in alphabetical order. ● Department of Transportation feet at 11 Hanover Square.The filed with the Securities and Exchange [email protected], with “New Seeks competitive sealed bids by 11 a.m. immigration-focused firm will expand Commission by executives and major in Town” in the subject line. ● 676 Associates Inc. on Nov. 25 for preventive maintenance from its current office at 111-115 shareholders. Listings are in order of 213-33 39th Ave., Queens of various movable bridges in the city. Broadway and occupy the entire 10th transaction value.The information was ● Arrogant Swine Filed for Chapter 11 bankruptcy on Oct. Specification books and drawing sets are floor.The tenant was represented by obtained from Thomson Reuters. 173 Morgan Ave., Brooklyn 30.The filing cites estimated assets of available for a $50 deposit each, payable Gabe Whitman of his namesake The beer garden and barbecue restaurant $500,001 to $1 million and estimated by certified check or money order to the brokerage, while the landlord, Beekman ● Celgene (CELG) opened in East Williamsburg.The menu liabilities of $1,000,001 to $10 million. New York City Department of Estate, was represented in-house. Asking Ernest B. Mario, director, sold 100,000 features 20 craft beers on tap, 20 bottled The creditors with the largest unsecured Transportation. To make inquiries, rents run in the mid-$30s per square foot. shares of common stock at $102.85 per beers, North Carolina-style whole hog claims are Community National Bank, contact Junaid Syed at (212) 839-9297 share on Oct. 27, in a transaction worth BBQ and homemade sausages. owed $525,000, and General Merchan- or [email protected]. RETAIL $10,284,600. He now directly holds dise at Tremont, owed $300,000. ● 305 Fitness signed a lease for 1,200 131,932 shares. ● Brodo GOODS AND SERVICES square feet on the ground floor and 3,000 403 E. 12th St., Manhattan ● Awais Management Corp. ● Economic Development Corp. square feet on a lower floor at 18 W. ● Interpublic Group of Cos. (IPG) The broth takeout shop opened in the d/b/a Super Deal 99 Cent & Up Requests proposals by 4 p.m. on Dec. 22 Eighth St.The boutique dance workout Michael Isor Roth, chairman, chief same space as Hearth in the East Village. 613 Brighton Beach Ave., Brooklyn from qualified individuals or companies company is moving into a permanent executive and director, exercised options The menu features broths made from the Filed for Chapter 11 bankruptcy on Oct. for construction, renovation and/or home after previously operating in on 450,000 shares of common stock at bones of local grass-fed cows and organic 30. The filing cites estimated assets of $0 improvement of commercial, retail or temporary spaces around Manhattan. $13.65 per share between Oct. 27 and chickens with “optional infusions” of beet to $50,000 and estimated liabilities of industrial facilities, employing a The tenant was represented by Aaron Oct. 28, in a transaction worth kvass and chile oil, plus some soups and $100,001 to $500,000. The creditors significant number of individuals in Cukier and Tyler Scalzo of Newmark $6,140,250. In the same period, he sold Sicilian hot chocolate. with the largest unsecured claims are certain qualifying occupations, and Grubb Knight Frank, while the landlord, 450,000 shares of common stock at 613 Brighton Beach Ave., owed paying employees a living wage. The Friedland Properties, was represented in- prices ranging from $18.67 to $18.89 per ● Michael George Flowers $90,000; All Star Import, owed $5,500; RFP is available for in-person pickup house. Average asking rents for ground- share in a transaction worth $8,451,000. 197 Ave. B, Manhattan and BWD Wholesale, owed $4,300. between 9:30 a.m. and 4:30 p.m., floor spaces in the area run $125 per He now directly holds 884,977 shares. The floral shop opened in the East Monday through Friday, from square foot, while lower-floor spaces Village. It offers a variety of flowers as ● IBG Enterprises Inc. NYCEDC, at 110 William St., fourth usually command $30 per square foot. ● Cognizant Technology Solutions Corp. well as at-home holiday tree trimming. 43 Main St., Hempstead, N.Y. floor, Manhattan. To make inquiries, The length of the lease was not disclosed. (CTSH) Filed for Chapter 7 bankruptcy on Oct. contact Maryann Catalano at Gordon J. Coburn, president, sold 27. The filing cites estimated assets of (212) 312-3969 or livingwagecapfund ● Papyrus signed a 10-year lease for 45,000 shares of common stock at COMPANY MOVES $500,001 to $1 million and estimated @nycedc.com. 1,400 square feet at 655 Sixth Ave. The $47.00 per share between Oct. 29 and liabilities of $100,001 to $500,000. The stationery, greeting-card and gift chain Oct. 30, in a transaction worth Companies that would like to have details creditors with the largest unsecured ● Housing Authority is occupying the space of an old Crumbs $2,115,000. He now directly holds of recent moves published should submit claims are Patrick Payne, owed $5,800; Requests proposals by 2 p.m. on Dec. 2 location. The tenant was represented by 88,162 shares. descriptions following this format to Michael Cirrito, owed $5,500; and for Supply Management Department Taryn Brandes and Jacqueline Klingerof [email protected], with National Grid, owed $2,345. workforce development and vocational SCG Retail, in a deal directly with the ● C.R. Bard Inc. (BCR) “Company Moves” in the subject line. training services for Housing Authority landlord, United American Land. The Sharon M. Luboff-Alterio, group vice ● Premiere Estates Inc. residents in East Harlem. Proposers asking rent was roughly $250 per square president, sold 10,000 shares of common ● Alidoro 1196 Sixth Ave., Manhattan electing to obtain nonelectronic paper foot. stock at $158.80 per share on Oct. 27, in 18 E. 39th St., Manhattan Filed for Chapter 7 bankruptcy documents will be subject to a $25 a transaction worth $1,587,970. She The SoHo sandwich shop opened a protection on Oct. 29. The filing cites nonrefundable fee, made payable to the ● Brora signed a lease for 975 square feet now directly holds 37,274 shares. Ⅲ second location, in midtown. It offers estimated assets of $500,001 to $1 New York City Housing Authority, by Italian sandwiches, salads and breakfast million and estimated liabilities of money order or certified check only. sandwiches. $1,000,001 to $10 million. The creditors Remit payment to NYCHA Finance with the largest unsecured claims are Department at 90 Church St., sixth DEALS ROUNDUP ● El Coyote Paul Gregory, owed $250,000; Pat floor, New York, N.Y. 10007. To 70-09 Austin St., Queens Saling Ltd., owed $200,000; and Circa make inquiries, contact Meddy The Mexican restaurant opened a fourth Jewels and Waldman Inc. Jewelry and Ghabaee at (212) 306-4539 or TRANSACTION SIZE location, in Forest Hills.The menu Antiques, each owed $120,000. [email protected]. TARGET/SELLERS (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE features enchiladas, quesadillas, guaca- United Biscuits (Holdings) $3,300.0 Yildiz Holding A.S. SB M&A mole, fajitas, churrasco, mole poblano, Seeks competitive sealed bids by 10 a.m. Ltd./PAI Partners, banana chicken, sangria, mojitos, piña GOVERNMENT CONTRACT on Dec. 4 for a lead-based paint Blackstone Group private coladas and lime-boat margaritas. OPPORTUNITIES inspection services contract at equity group (Manhattan), developments in the five boroughs. United Biscuits Topco Ltd. ● Madewell Following are selected contract Vendors electing to submit a DSS Group Inc./ $1,250.0 Cott Corp. SB M&A 126 N. Sixth St., Brooklyn opportunities recently announced by New nonelectronic bid (paper document) will Crestview Partners The women’s clothing store opened its York City agencies.To learn how to sell be subject to a $25 nonrefundable fee, (Manhattan) first Brooklyn location in Williamsburg. goods and services to city government, visit payable to NYCHA by money order or 1740 Broadway Associates/ $605.0 Not disclosed SB M&A It offers denim, leather jackets and www.nyc.gov/selltonyc. For a searchable certified check only, for each set of Vornado Realty Trust sweaters; a collaboration with French database of current procurement notices, requests for quotation documents (Manhattan) label Sezane featuring flannel shirts and visit www.nyc.gov/cityrecord. Listings are requested. Remit payment to NYCHA Hudson Valley Holding Corp./ $537.3 Sterling Bancorp SB M&A men’s loafers; and store exclusives with alphabetical by category and department. Finance Department at 90 Church St., Basswood Capital local designers, including minimalist sixth floor, New York, N.Y. 10007. To Management (Manhattan) jewelry by Thursday-Born, indigo-dyed CONSTRUCTION SERVICES make inquiries, contact Erneste Pierre- AERCO International Inc./ $264.5 Watts Water Technologies Inc. SB M&A planters from Freundeskreis and Nova’s ● Brooklyn Bridge Park Louis at (212) 306-3609 or The Riverside Co. limited-edition scents. Seeks requests for proposals by 4 p.m. on [email protected]. (Manhattan) Nov. 26 for the provision of construction Gordon Brothers Finance $129.6 BlackRock Kelso Capital Advisors FB M&A ● Williamsburg Pizza services for the rehabilitation of Co./Gordon Brothers (Manhattan), Gordon Brothers Group 620 Atlantic Ave., Brooklyn bulkheads at Pier 1 and Pier 6, and the REAL ESTATE DEALS Group The pizza shop opened a second wharf between Piers 2 and 3, at Hampden Bancorp Inc./ $115.0 Berkshire Hills Bancorp Inc. SB M&A location, in Barclays Center in Prospect Brooklyn Bridge Park. Proposers may Companies that would like to have details Clover Partners, First SecuritiesAmerica Inc., Heights. The menu features four submit three physical copies of their of their recent transactions appear in these Hampden Bank Charitable different types of grandma-style slices: proposal to Patricia Kirshner, Brooklyn listings should email descriptions following Foundation endowment arm, margherita, tartufo with mushrooms and Bridge Park Corp., 334 Furman St., this format to JKramer@crainsnewyork Hampden Bank ESOP, truffle oil, pepperoni and plain. Brooklyn, N.Y. 11201, and one .com, with “Real estate transaction” in the Sandler O’Neill Asset electronic copy to pkirshner@ subject line, or enter them online at Management (Manhattan) bbpnyc.org. To make inquiries, contact crainsnewyork.com/submitadeal. Deals are Selected deals announced for the week ended Nov. 6 involving companies in metro New York. BANKRUPTCIES Davin Mills at (212) 661-6624 or listed in order of square footage. FB M&A: Financial buyer M&A represents a minority or majority acquisition of existing [email protected]. shares of a company with the participation of a financial buyer. SB M&A: Strategic buyer The following listings are selected from the COMMERCIAL M&A represents a minority or majority acquisition of existing shares of a company without the most recent available filings by companies ● Department of Parks & Recreation ● Lagardère Unlimited signed a lease for participation of a financial buyer. source: capitaliq seeking bankruptcy protection in the Seeks competitive sealed bids by 10:30 18,600 square feet at 488 Madison Ave.

November 17, 2014 | Crain’s New York Business | 29 LUNCHEON

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For sponsorship information, contact Joanna Harp at 212-210-0278 or [email protected]. 20141117-NEWS--0031-NAT-CCI-CN_-- 11/14/2014 7:21 PM Page 1

Food pantries: more demand, less supply

“When I first got the results,I was Hunger, which has a budget this Aid groups feeling silent,” said Margarette Purvis, presi- year of $1.2 million. “We’re not the the pain of 2013’s dent and chief executive of the Food story anymore.” Bank, which has an annual budget of She has tried to bring increase do- cuts to nutrition $79.8 million—including the value nations by holding more fundraisers CRY FOR HELP: of donated food—in fiscal year 2015. and awareness events. It hasn’t Margarette Purvis assistance program “I couldn’t believe 60% were running helped. In the year to date, the cam- of the Food Bank out of food when we have been killing paign has raised $238,000, down al- for New York City ourselves to get more out there.” most 50% from this time in 2013. BY THERESA AGOVINO Rev.Samuels said she has resort- ‘Most vulnerable’ ed to often giving families enough As the holiday season approaches, a Ms. Purvis worries that most food for seven meals per person in- majority of food pantries in the city people don’t understand that 75% of stead of the usual nine meals. Last say they’re facing bare cupboards. the families receiving SNAP bene- week, the pantry served 150 new They report that the number of their fits include a child, or an elderly or families when it typically serves 300

visitors has surged in the aftermath disabled person. “These are our new families every month.“It’s a real getty images of a major cut to a federal aid pro- most vulnerable citizens who are struggle,” she said. gram late last year. getting hurt,” she said. The challenge is familiar to oth- gives me a horrible sensation that I pantry, which has a budget of $4.8 In September, 60% of food To increase awareness, the Food ers who feed the needy,such as San- can’t meet all the needs.” million in fiscal 2015. pantries and soup kitchens reported Bank last week started an ad cam- dra Reyes, executive director of a He needs all the help he can get. running out of food, up from 48% paign on digital bus shelters featur- soup kitchen at Caldwell Temple in Widening the net The number of people served by the last November, when the federal ing famous New Yorkers such as the Bronx. She’s trying to figure out Some food kitchens say they have pantry increased by 15%, to 44,950, government cut $5 billion from the Mario Batali and Susan Sarandon how she will meet all her clients’ been able to fill some gaps by reach- for the year ended June 30. In a sur- Supplemental Nutrition Assistance encouraging people to support the needs for Thanksgiving. This year, ing out for more donations and rescu- vey of the food kitchen’s clients, 82% Program, formerly known as food less fortunate this holiday season. she has received 45 baskets filled ing more leftover food.They say per- reported that their SNAP benefits stamps. Meanwhile, 80% of food Food-pantry executives say that with food for the holiday meal but sistence, widening the net and even were cut last year, and 41% said they pantries said they served more peo- people last year were motivated to do- still needs about 20 more to serve all spending money on the effort have were turning to the pantry and other ple this past September than they nate to organizations fighting hunger the people in the community with helped. With donor funds, the New emergency food providers for sup- did a year earlier, according to a sur- because the cuts spurred public out- very large families. Last year at this York Common Pantry on the Upper port. Sixteen percent said they were vey by the Food Bank for New York rage and press coverage at the time. time, she already had 100 baskets to East Side purchased a second van o missing meals. City that was provided to Crain’s. “People’s heartstrings aren’t be- give away, and now she is expecting pick up excess food from 11 Chipotle “We knew the cuts were coming. Consequently, more soup kitchens ing pulled anymore,” said the Rev. requests from 150 families. restaurants, among others. “It helps We knew there would be more de- are turning people away or offering Melony Samuels, executive director “I have a priority list and I need stretch the food,” said Stephen mand,” Mr. Grimaldi said. “That’s them less food per visit. of the Bed-Stuy Campaign Against to make decisions,” she said. “It Grimaldi, executive director of the why we got a van.” Ⅲ

PUTTING THEIR HANDS OUT greatest inequality between rich and poor schools in state history,”charged A surplus of attention SEEKING OUTLOOK Billy Easton, president of the Al- MTA $15.2B At best, will get a small liance for Quality Education, which Continued from Page 1 “The private sector would take chunk of the surplus gets funding from the state teachers’ major capital projects. the construction risk,the design and SENATE $3B New GOP majority union. “The state needs to invest at In general, Mr. Cuomo has said engineering risk and the financial REPUBLICANS takes its cut for tax least $2 billion in increasing school he wants most of the money to go risk,” a source close to the task force breaks, projects funding this year,and the surplus pro- toward infrastructure but has not said. “And the municipalities or the TAPPAN ZEE $2.9B State has paid vides an obvious way to finance our named specific projects.It’s a safe bet government agency would take the BRIDGE (below left) $1B already; tolls will children’s education.” that the new, $3.9 billion Tappan revenue risk.” fund much of the Zee Bridge will be one,given the po- A spokesman for the governor buck ennis balance Swarm of lobbyists litical pressure to limit toll increases. couldn’t say whether Mr. Cuomo has GOV. ANDREW $2.5B The big lion eats first; The education interests will rely Other possibilities are the Depart- met with any interest groups or lob- CUOMO good news for on public pressure and Assembly ment of Transportation’s overlever- byists in relation to the surplus, about upstate, infrastructure Democrats to push Mr. Cuomo, aged Dedicated Highway and 60% of which comes from French SCHOOL $2B As a priority of who is a charter-school supporter Bridge Trust Fund, the reauthoriza- bank BNP Paribas for violating trade ADVOCATES Assembly Democrats, and holds Mr. Easton and his allies tion of which is past due; the state’s sanctions with Cuba,Iran and Sudan, an aid increase is likely in contempt. The governor recently aging sewer and waste-treatment and from settlements with other fi- SOCIAL-SERVICE $354M With enough told the Daily News editorial board system; and the MTA’s capital plan. nancial firms, including Pricewater- GROUPS squeaking, this wheel that his goal next year was to break

Building and construction trades houseCoopers, Standard Chartered, marcia ennis will get some grease the public-education “monopoly.” are operating on “a wink” from the Credit Suisse and Citigroup. He has repeatedly decried the state’s Cuomo administration that infra- outright majority in the chamber Moss Lee, president of Black status as first in education spending structure will be the primary use for Transit projects, tax cuts next year,put forward a plan to spend Agency Executives, to Mr. Cuomo but in the lower half in results. the surplus, one lobbyist said. And Meanwhile, MTA officials are $3 billion of the windfall on tax cuts on Nov. 11. “We are asking for a “I don’t believe in paying to grow other insiders said the governor has waiting for Mr. Cuomo to weigh in and infrastructure—although some reinvestment in this critical sector.” a bureaucracy,” Mr. Cuomo told the instructed his New York Works on the transit agency’s five-year cap- budget experts noted that the sena- The advocates said the funding business council in September. Task Force, made up of labor lead- ital plan, a little more than half of tors’ definition of “infrastructure” freeze has forced some social- The governor holds extraordi- ers, municipal officials and budget which is funded. The governor re- was broad enough to include “local service providers to merge. nary budgetary powers, but coping experts, to devise a plan to spend cently called the $32 billion plan college campuses.” The watchdogs In mid-November,education ad- with the swarm of lobbyists and leg- some of the cash on repair projects “bloated,”angering transit advocates fear that could mean political pork- vocates and teachers’union support- islators forming around the surplus across the state. It could be used, for who are holding out hope that some barrel spending, as opposed to state- ers, many of whom are preparing for will define his next few months. He instance, to finance public-private of the surplus will go to the MTA. of-good-repair work. a brutal fight with Mr. Cuomo over won’t have any peace before he artic- infrastructure projects like that for Legislators are lining up for a And then there are the lobbying money and teacher-evaluation re- ulates a specific plan for the windfall. the new Goethals Bridge between slice of surplus pie as well. Senate campaigns. In late August, a coali- forms next year,held the first of what “He’s going to program every Staten Island and New Jersey. Republicans, who have secured an tion of 80 nonprofits penned a letter will likely be many rallies calling for penny of it,” said E.J. McMahon, to Mr.Cuomo requesting $354 mil- at least $1.2 billion more for educa- president and founder of the Em- CORRECTIONS lion to restore funding to social pro- tion in 2015. Many are rankled that pire Center for Public Policy.“That Garrick Pohl is the chief executive of Zipments. His name was misstated in the Nov. 10 “Ship-shape for grams that were cut during the the governor has not provided the re- will tame but not prevent the feed- the holidays.” state’s belt-tightening years. Subse- maining $5.9 billion promised in the ing frenzy that is already beginning The Better Buildings Challenge is a federal Department of Energy initiative to reduce energy quent letters followed, and a press settlement of the Campaign for Fis- in certain corners,now that the elec- consumption. The program’s name was misstated in the Nov. 10 “Green light for landlord.” release was issued last week. cal Equity case, in which the state tion has passed.” Ⅲ “These budget gaps have been was ruled to have underfunded Kohlberg Kravis Roberts & Co. has a market cap of $18 billion. The firm has never acquired Clear LISTEN Channel at any point. These facts were misstated in the Sept. 15 Crain’s Hall of Fame profile of KKR co- closed, and the state is seeing a $4 inner-city schools. to a discussion at Chairman and co-CEO Henry R. Kravis. billion surplus,” wrote Danielle “Under Gov.Cuomo, we have the CrainsNewYork.com/podcasts

November 17, 2014 | Crain’s New York Business | 31 20141117-NEWS--0032-NAT-CCI-CN_-- 11/14/2014 7:08 PM Page 1

Estée Lauder

Continued from Page 3 BB cream—a hydrating lotion that sales of $2.6 billion, a 1.6% decline treats blemishes—have already be- from the year-earlier period, as come wildly popular here. Late last earnings tumbled 24%, to $228.1 year, the government-affiliated Ko- million. rea Health Industry Development Institute opened a cosmetics pop- The scent of success up shop in SoHo that operated The company’s mainstay skin- through the spring. Rather than care division, which accounts for viewing these new entrants to the 44% of sales, fell more than 6% in market solely as competitors, Estée the most recent quarter, as con- Lauder might target them for acqui- sumers defected to rival brands. Yet sitions or partnerships. some analysts are op- “Korea has a very timistic that recent sophisticated, highly

library of congress of library acquisitions in areas developed cosmetics A SIMPLER PAST: Food carts at the turn of the 20th century. Below, carts from the 1970s. such as fragrance, a market,” said An- category that makes drew Postal, manag- up only 13% of sales, ing partner at MMG could boost that busi- Advisors, a fashion- Pushcart pushback in midtown ness significantly. industry-focused in- “A key pillar to our vestment bank. “Es- positive thesis on Es- tée Lauder will Continued from Page 3 carts more attractive would increase that are at least 12 feet wide. tée Lauder is bal- particularly benefit He said they create an unattractive sales. One vendor agreed to be the Mr.Biederman is not alone in his ance,” wrote Nik from a partner with environment. first in the program and to split with frustration. Other business districts Modi, a retail analyst special capabilities What’s more, he added, they the partnership the $3,000 tab for say that vending is a problem. Most at RBC Capital Mar- and strong markets, bloomberg news don’t have to play by the same rules the upgrades. His cart got new sig- notably, the Metropolitan Museum kets, in a recent re- CEO FABRIZIO FREDA said Estée such as Korea’s.” as many of his constituents. “We nage and a smaller umbrella, and he of Art has attracted up to 20 hot- search note. “Differ- Lauder is creating the industry’s Mr. Freda recent- think it’s unbelievably unfair for the began selling fruit and vegetable dog and pretzel carts outside its ent engines tend to “next big brands.” ly noted that the brick-and-mortar restaurants, that smoothies. But in the end, he never brand-new $65 million plaza. Mu- fire at different times company tracks Ko- pay taxes and employ tons of people, paid his portion of the bill, and he seum officials are upset and are hop- to provide sharehold- rea’s trends. “The to get [letter grades from the has since left the Penn Station ing the city will address their con- ers with consistent top-line way to compete … is actually to em- Department of Health] and for the neighborhood. He’s been spotted cerns, which include safety hazards. growth.” brace them,” he said on the confer- carts to get away scot-free,” Mr. near the High Line. Under Mr.Freda’s tenure as chief ence call. Biederman said. “He was the best of them, and it Food trucks a bigger problem executive, which began in 2009, the Analysts say that Estée Lauder His obsession with the vendors, Others are focused on aesthetics. company’s share price more than could also expand its men’s divi- however, has earned harsh criticism “The carts are very unattractive,” quadrupled as the former Procter & sion—it acquired skin-care label from advocates such as Sean Basinski concurred Tom Cusick, president of Gamble executive aggressively Lab Series nearly 30 years ago but of the Street Vendor Project,which is the Fifth Avenue BID. “They have pushed a four-year cost-cutting ef- has made few inroads in the catego- part of the Urban Justice Center.The blaring music, and technically there fort designed to bolster margins. ry—even as men’s cosmetics gain vendors are largely minorities or im- are limits on the [cart] size,but some Recently, however, investors have steam abroad. migrants, earning low wages. vendors violate the limits.” cooled on the company. Today, its “We believe Dan Biederman He added that his district does stock trades at about $72 a share,ba- ‘Inorganic’ growth hates vendors and is a racist against not have as many vendors as the sically where it stood 12 months There are also several new tech [them],” Mr. Basinski said. 34th Street BID. ago. brands that have launched with at- “There is no racism here,” Mr. On a rainy Nov. 13 evening, 54 “Investors are concerned about home beauty products. La Lumiere, Biederman said.He insisted that his getty images vendors, 49 of which were selling the [revenue growth] slowing, a skin-care company that makes a desire to reduce the vendor popula- food, clustered between West 31st which is a fair concern,” said Mr. wearable light-therapy mask, re- tion in his districts is to make it eas- The number of and West 35th streets, from Eighth Dibadj, who added that he expects cently received $20 million in a ier for pedestrians to walk on the Avenue to Fifth Avenue, according the company to get back to a “better funding round led by Johnson & sidewalks and to improve the over- food carts has to the partnership. place, going forward.” Johnson Development Corp. and all streetscape appearance. None of the major business dis- To get there, Mr. Freda will have plans to increase its distribution. “This problem is out of control. been stable, but tricts in the city said they are expe- to fend off rising competition. “Just introducing new products The carts are bigger, uglier, and riencing a surge in vending,with the Archrival L’Oréal has fired up its is not going to give you the growth some of them extend to as high as 20 violations are up exception of food trucks. buying machine as well, most re- that is required for driving your feet.” “We are seeing a growth in food- cently purchasing Manhattan- share price,” said Hana Ben-Sha- While Mr.Biederman maintains truck activity,” said Marc Wurzel, based hair-care company Carol’s bat, a partner in the retail practice that the vendors have proliferated general counsel for the Grand Cen- Daughter. of management consulting firm around West 34th Street and Bryant tral Partnership. It reported 321 in- Meanwhile, innovative brands A.T. Kearney, noting that the time Park, the city’s Health Department, just didn’t work out,” said Mr. cidents in which its public-safety from South Korea—a major it takes to go from research and de- which issues the food-handling li- Biederman. officers responded to a vendor prob- launching pad for pop-beauty velopment to market is too long censes and food-vending permits, The “unfair competition” argu- lem during its previous fiscal year, trends—are beginning to land in the and costly.“You have to grow inor- said there has been no rise in their ment has not earned broad support which ended in June 2014. But U.S.market,Estée Lauder’s biggest. ganically.” Ⅲ numbers citywide. in the City Council, which would there have already been 190 com- Although some Korean trends, like have to sign off on legislation re- plaints in the first four months of using fire to curl eyelashes, may LISTEN to a discussion at Offering a redesign quiring mobile vendors to get letter the fiscal year. struggle to take off, others, such as CrainsNewYork.com/podcasts According to the agency, there grades—though council member “If the incidents continue at that are 5,100 truck and cart permits, a Daniel Garodnick said he plans to pace, we could be looking at 570 by number that is capped by the city’s reintroduce his bill to put letter the end of the [this] fiscal year,” Mr. Administrative Code and has not grades on food carts. But most peo- Wurzel said, adding, “Anecdotally, CRAIN’S 40 UNDER 40 increased for several years.There are ple, including the vendors, agree most of the chatter is about food approximately 18,000 licensed ven- that the rules governing vending in trucks.” NOMINATIONS ARE OPEN dors—who prepare and sell the food the city are byzantine, inconsistent For now, food trucks appear to be CRAIN’S IS SEEKING NEW YORK’S BEST AND BRIGHTEST executives and on the streets—and that number is and need to be rewritten. attracting the most scrutiny, as af- entrepreneurs for our annual 40 Under 40 list. Please go to similarly unchanged since 2010. There are streets, for example, firmed by the New York City Food crainsnewyork.com/40under40/nominate to submit your candidate today. But violations have increased to that do not allow vending,and some Truck Association.On Oct.14,it sur- We look for overachievers from all 11,268 in fiscal year 2014 from that allow it only after 6 p.m. or 7 veyed its members, finding that 54% industries who have made a 9,897 the previous year. p.m. and on the weekends. Other of them had been ticketed during the significant contribution to their In 2011,the 34th Street Partner- streets have no restrictions at all. prior day, and 85% had received a company or organization. The ship tried to launch a program to Disabled-veteran vendors are given ticket within the previous week. deadline for entries is Dec. 5, 2014. help vendors redesign their carts special privileges, including priority But near Penn Station, most of Candidates must work in the five and add healthier menu items. Mr. over others to sell on any block.And the talk is about carts. boroughs of New York City and be no Biederman argued that making the there are different rules that apply to “The biggest complaint by far vendors who sell books, magazines from landlords and tenants [in my older than 39 on the publication date, LISTEN to a discussion at and calendars. In general, vendors districts] is vending,”Mr.Biederman March 30, 2015. CrainsNewYork.com/podcasts are required to set up on sidewalks said. “The second is about taxes.” Ⅲ

32 | Crain’s New York Business | November 17, 2014 20141117-NEWS--0033,0034-NAT-CCI-CN_-- 11/14/2014 3:21 PM Page 1

HELLUVA TOWN INSIDE Source Breakfast Child’s play The last discounter

Club kids now have a new way to standing PAGE 34 get down. Professional partiers and married couple Jesse Sprague Out and About and Jenny Song offer real children a nightclub experience, but during LES is more on Black the day and without the help of Friday PAGE 35 anything harder than juice. Keeping it in the family, their 8-year-old son, Alden, plays DJ. CirKiz, which they co-founded in August, offers monthly parties filip wolak targeting 6- to 12-year-olds with electronic dance music, circus performances, LED robots, a friendship-bracelet-making station and a snack bar. Children must be accompanied by their parents (and vice versa). The couple decided to start the business when they hosted their son’s first-birthday party at Cielo, where Mr. Sprague was manager, and parents told them they would have paid for admission. “The parties are equally for adults,” Mr. Sprague admitted, with parents encouraged to drink at the cash bar and dance. The couple said their up-front expenses are significant, and the parties just about break even. The events average 250 to 300 people at $20 a head. The next one takes place on Nov. 23 at the VIP Room. —jessica kramer Bottle rockets Selling expensive wine by the Angel heart glass can be risky but highly rewarding. So when Jared Fischer, the wine director at Clement Restaurant in the Common wisdom is that angel investing Peninsula New York Hotel, read reports this summer that the is more hobby than moneymaker. device he uses to keep his pricey bottles fresh had caused some to explode, it didn’t scare him away. David S. Rose’s record proves otherwise After a brief hiatus from using Coravin, as the $300 instrument is called, he’s gone back to it. Using a thin needle, Coravin draws wine out of a bottle without removing the cork, and injects WING SPAN: argon gas to prevent oxygen from David S. Rose spoiling the vino. Clement’s entire wrote the recently published guide wine list is available by the glass. Angel Investing. The most expensive bottle Mr. Fischer has sold that way is a 2007 Chateau Palmer red that went for $204 per glass. composite image: levine, karjean istock Coravin reports on its website that it had received 13 complaints about bottles cracking BY MATTHEW FLAMM during the past year. It has since designed a protective sleeve for t’s a general rule in the startup world that there is no such thing as a full-time angel HALO EFFECT bottles, which Mr. Fischer has investor. And if there is an exception, it’s likely to be David S. Rose, founder and opted not to use—though he opens bottles away from diners’ chairman emeritus of New York Angels and managing principal of seed-stage firm tables. “I think Coravin is very Rose Tech Ventures. ¶ A scion of the Rose real estate family, Mr. Rose, 57, has invested useful,” he said. in more than 100 companies, has a current portfolio of about 50 and is active as a board Mario Batali’s Del Posto will 10 0+ resume using Coravin this week. member or adviser in about a dozen. He also runs Area, which stands for “a real estate NUMBER of companies —lisa fickenscher accelerator,” is founder and chief executive of Gust, the widely used angel-investment Mr. Rose has invested in platform, and is the author of the recently published guide Angel Investing. ¶ His nonstop travel schedule and the growth of Gust—he is on the hunt for new office space in Manhattan, while looking at putting an engineering outpost in a tax-free zone at Binghamton IUniversity—made catching up with him next to impossible. But patience won out: Mr. Rose found 300K+ a day last month in which a reporter could trot along and witness the working life of a professional NUMBER of startups that are angel. ¶ In person, Mr. Rose is just as tireless as his résumé implies: a fast-talking, somehow boyish served by his Gust angel-

peninsula new york hotel peninsula new york See ROSE on Page 34 investment platform

November 17, 2014 | Crain’s New York Business | 33 20141117-NEWS--0033,0034-NAT-CCI-CN_-- 11/14/2014 7:09 PM Page 2

SOURCE Rose’s angel heart BREAKFAST: Interview by Adrianne Pasquarelli EDDIE GINDI Continued from Page 33 specifics on his returns or finances, grandfather of the city’s tech scene. his portfolio includes video and pho- In the course of the day, he listened to marketplace Pond5, which raised to entrepreneurs’ pitches at a New $61 million in a Series A round in York Angels breakfast, via Skype in July. New York Angels, with Mr. Century 21,last NY discounter, Gust’s Chelsea offices at lunchtime Rose leading the investment, put in and in a corner of his accelerator’s $500,000 in 2008. He was also a lead downtown loft before dinner. investor in Comixology, a comic- book platform recently acquired by is thriving and expanding ‘Wonderful circle’ Amazon for an undisclosed sum.Mr. He also talked with IBM execu- Rose called the deal “very good.” tives about their partnership with Other successes include he Big Apple has not table that we’re looking at out of expect people to come in and buy. Gust on the city’s Digital.nyc launch customer-support firm LiveLOOK, been kind to discount New York state, but we don’t just and advised a former employee about acquired by Oracle; software compa- retailers of late, but expand to open up stores. We don’t Your family recently sold a portfolio of his startup. ny Mashery, acquired by Intel; and Century 21 is the last want to open up 100 or 200. Our buildings, including a trio of properties “It’s all a wonderful circle,” Mr. women’s finance site LearnVest, one standing in New five-year plan would be five or six at 75-81 Nassau St., that netted $164 Rose said over sushi after the Skype which has raised more than $60 mil- TYork. Eddie Gindi, whose father more stores. million. What do you plan to do with the pitches, and noted that normally, in- lion in VC financing since Rose Tech and uncle founded the company 53 money? stead of talking to a reporter,he would Ventures’ initial investments several years ago, started in the stockroom I don’t need to name all the New York It’s pretty simple. We took our be responding to queries on the years ago. in 1977 and worked through discounters that have gone under in the portfolio of real estate downtown question-and-answer site Quora. “It Like most angels,Mr.Rose began almost all the store’s departments past five years—we don’t and wanted to sell it but to helps build the brand,” he explained. investing as a second (or third) career. before becoming executive vice have that kind of time. WHERE not take the cash—to rein- “The online writing and teaching A graduate of Yale College and Co- president and co-owner of the Why is Century 21 left THEY vest it and buy more proper- raises my profile,which attracts deals, lumbia Business School, he’s been an family-run firm. standing? ties, better properties. We which come into New York Angels, urban planner and a developer with In addition to planning for hol- They’ve all gone by DINED did a lot of 1031 exchanges which I invest in, which resulted in a Rose Associates, a New York real idays—Century 21 is hosting a the wayside. Why THE SMITH [tax-free property sales and book, while Gust [provides] the sup- estate empire founded by his grand- pop-up shop with its former down- didn’t we expand so 956 Second Ave. purchases], and we reinvest- porting platform for the whole father Samuel Rose and great-uncle town neighbor J&R—the 56-year- fast and why are we so (212) 644-2700 ed. We love the real estate ecosystem,” he continued. “I see it as David Rose (who was also an angel old retail exec is busy keeping the calculated? We learn thesmithnyc.com business. It’s not our main a coordinated holistic enterprise, investor). nine-unit chain’s 5,000 employees from everybody’s AMBIENCE: focus,but it’s been part of our though other people might look at me In the late 1980s, he left the fam- happy and looking at new store op- mistakes. We want to Wide-open walls DNA since day one. and see a scatterbrained multitasker.” ily firm to launch paging-software portunities. A location opened in be able to stay in busi- and high ceilings To explain his talent company Ex Machina, Philadelphia in October, the ness and be relevant. make for a noisy How were you able to get by for doing so many a later version of which chain’s first one there. We persevered be- atmosphere. after 9/11? things at once, Mr. ‘Until my went bust with the dot- cause of our measured WHAT THEY ATE: Our downtown store re- Rose hurried to anoth- com bubble. By then, It took the company three decades to growth.We aren’t just Bagel and lox opened five months after er room and came back 30s, I wasn’t Mr.Rose had begun in- open locations beyond downtown and stores with racks; we without the bagel; 9/11.There were no business- Bay Ridge. Now you’re expanding coffee with a present:a copy of vesting with his own visually impress and Egg-white es and no residential,but there The Hypomanic Edge,a aware I was money and saw a rapidly. Why? want our stores to omelet; iced were tourists. They helped book about the link be- chance for serious an- We’re very conservative. We knew look like a depart- coffee keep us alive and maintain the tween “craziness and an oddball’ gels to make deals, as we were great merchants,and when ment store but still business.Our store there is six success,” according to VC firms and “tourist we established ourselves, we fo- offer off-price. It’s a PRICE: $47.20, selling floors, 200,000 square including tip its subtitle. angels” pulled back af- cused on selling designer merchan- hybrid mentality. feet. We renovated it last year “Until I was in my ter the crash. dise, but operationally we didn’t and added a café. 30s, I wasn’t aware I In 2003,he led New feel strong enough to open more Downtown seems to have gotten its was an oddball,” he confessed. “I York Angels out of a predecessor stores. Now we open one up every retail groove back, with hip stores, How does the company keep up with thought everybody was happy and group inside the New York New year or two. We are very solid and large-scale malls and now discounters the modern, tech-savvy consumer? optimistic.” Media Association,the Silicon Alley very strong operationally and have such as a Saks Off 5th opening in the One of the things our founders That indomitably upbeat out- trade group that collapsed with the really built up a great organization. area. Do you think you’ll see increased taught us is that you can’t be frugal look, coupled with what he de- bubble.“He did what he does, which Philadelphia is our first store out of competition, or are there enough in your expenses when it comes to scribes as an ego so large it’s “im- is to make things happen by not ask- the tristate area. tourists to go around? security and technology. As far as pregnable,” serves him well. By the ing for permission—just saying,‘We I love the fact that every retailer is technology is concerned, we invest end of a day of hearing pitches, he need this, let’s do it,’ ” said Esther Are any more locations in the works? coming downtown—they’re good a very large amount in our IT and had not said a bad word about any- Dyson, an investor, author and Philadelphia is a 100,000-square- competition, and it makes us e-commerce departments.We have one,and seemed ready to hear more. entrepreneur who was among the foot store. And we have a store sharper. We have to offer every a whole team in marketing not only Friends of his said this was not an original group. coming in 2015 in downtown shopper who walks into a store a for our ad campaigns, but also for act for a journalist. Mr. Rose’s optimism was well Brooklyn, which will be our 10th. “wow” experience. We have stylists social media.We do have an app you Executives at his portfolio compa- timed. New York Angels became a We are constantly looking for new who will help guests. You have to can get. It’s being developed even nies report that he seems never to leading source of early-stage funding, locations and have a few on the think out of the box—you can’t just more as time goes on. sleep, often sending emails in the wee and he began building AngelSoft, hours, and throws great parties. which provided software to investors “There are a lot of VC firms that tracking their deal flow. Mr. Rose gin up a fun event that they got out would relaunch it as Gust in 2011, PLAY/LIST People, places and things that make Eddie Gindi tick of the [investors’] playbook, but I with a suite of features aimed at mak- would argue that David wrote the ing it a complete collaboration plat- ROCK STAR: When helping the Coast in Italy. something on his playbook,” said Steven Rosenbaum, form for investors and entrepreneurs. he’s not running children of 9/11 “That’s a little clothes, he buys founder and CEO of video platform It has been adopted by national retail, Mr. Gindi is victims. Last piece of heaven,” replacements right Waywire Networks. angel-investor federations in two playing guitar in year, his song he said. away. “I’m very And despite the difficulties of dozen countries, Mr. Rose said, and his band, Men in “Survivor Tree” neurotic if I stain making money from angel investing, serves more than 50,000 accredited My Head, which raised COSTUME something.” Mr.Rose resolutely believes—it’s the investors and more than 300,000 raises money $275,000. This CHANGE: It pays theme of his book—that the right ap- startups,in addition to providing the for Tuesday’s year’s song is to work above a COUNTING CHORDS: proach can bring an internal rate of platform for the city’s Digital.nyc Children, called “Century UBER FAN: When he’s retail store. When- He has a collection of return of 25%. And that’s coming tech hub. a charity Love,” featuring 50 not in a rush and ever Mr. Gindi spills 15 guitars. from someone who missed out on the Riding in an Uber SUV down- Cent. “Rock will taking the subway, chance to invest in Pinterest. town toward his last meeting of the never die,” he said. Mr. Gindi takes Uber Mr. Rose’s successor as New York day, Mr. Rose sketches a world in to his downtown Angels chairman, Brian Cohen— which millions of investors connect BEATS A office each day. “It’s who did invest in Pinterest—is less globally with startups on Gust. the best!” sanguine about angel investing: “No “It’s a very long-term play,” he PAPERWEIGHT: Mr. one is really making money,”he said. said. “But we are ultimately building Gindi keeps a 3-inch He added that there are plenty of the 21st-century platform that’s miniature Fender PLACE IN THE SUN: other good reasons to be an angel. going to underlie this whole world of electric guitar on his His favorite vacation

Though Mr.Rose declined to give entrepreneurship.” buck ennis desk. spot is the Amalfi

34 | Crain’s New York Business | November 17, 2014 20141117-NEWS--0035-NAT-CCI-CN_-- 11/14/2014 7:22 PM Page 1

OUT AND SNAPS Crain’s celebrates its inaugural Hall of Famers ABOUT by Jessica Kramer

CULTURE FIX CAREER BUILDER MONDAY, NOVEMBER 24 MONDAY, NOVEMBER 24 Leading figures from the Asian Women in Business hosts the final art world convene to weigh in part of its four-part Starting Your on new media’s evolution and Business 101 series with FINANCING YOUR audience engagement at NEW BUSINESS. The workshop covers loans, MEDIA ART: THEN AND NOW. investments, credit lines and SBA The moderator is Michelle guarantees, alternative financing Yun, curator of the “Becoming Robot” (crowdfunding, angel investing, etc.), how exhibit featuring the work of Nam June much financing is needed, and what

john bigelow taylor photography bigelow taylor john Paik, billed as the “father of video art.” lenders look for.The event takes place at 6 The discussion takes place at 6:30 p.m. p.m. at the Microsoft Technology Center at the Asia Society and Museum at 725 at 11 Times Square.Tickets are $20 for Park Ave. Tickets are $15 for members and $30 for nonmembers and nonmembers, $10 for members, and can be purchased at awib.org. KATHRYN and KENNETH CHENAULT (inductee) at the Crain’s $12 for students and seniors. To New York Business Hall of Fame Luncheon. The Nov. 10 event DIANE VON FURSTENBERG was one of the 10 inductees chosen from purchase tickets, visit asiasociety.org. TUESDAY, NOVEMBER 25 honored business leaders who have transformed the city. nominations by Crain’s readers. CapRate Events presents its second SATURDAY, NOVEMBER 29 annual NEW YORK WINTER APARTMENT Dubbed a “lo-fi legend” in The New York SUMMIT AND 2015 DEVELOPMENT Times, R. STEVIE MOORE has self-released OUTLOOK, which will assemble more more than 400 albums in the past four than 50 speakers and more than 400 decades, mostly on cassette. Though he commercial real estate executives seeking has made public appearances over the new opportunities in New York City. years, the 62-year-old didn’t start Topics include trends, patterns, touring until 2011. Catch the man opportunities and challenges in behind the myth in the countdown to commercial real estate, such as which the closing of Glasslands, South submarkets of the city are poised to see Williamsburg’s beloved indie venue, at rental growth and new development. the end of the year. The show is at 7 p.m. The conference begins at 7:30 a.m. at at the club at 289 Kent Ave. in the McGraw Hill Conference Center at Brooklyn. Tickets are $12 and can be 1221 Sixth Ave. Tickets start at $235 purchased at theglasslands.com. and can be purchased at cre-events.com. DON’T MISS BLACK-FRIDAY FEAST FRIDAY, NOVEMBER 28 buck ennis JOHN ROSENWALD, HENRY KRAVIS (inductee) and JONATHAN This Black Friday, save some room for the Big DICK PARSONS (inductee), TERRY LUNDGREN (inductee) and VERNON TISCH (inductee) at the event honoring city business leaders for Onion’s ANNUAL POST-THANKSGIVING MULTI- JORDAN at the Crain’s luncheon, which drew about 450 guests. their professional work and their civic and philanthropic activities. ETHNIC EATING TOUR. The walking excursion on the Lower East Side includes approximately 10 noshes from local Jewish, Italian, Chinese See more of this week’s Snaps online at CrainsNewYork.com/galleries. and Dominican shops and markets, and highlights the neighborhood’s rich history along the way.The two-hour tour takes place at 11 a.m. and 2 p.m. at the southwest corner mike chu of Delancey and Essex streets. Tickets, which include food samples, are $25 for adults and $20 for students and seniors, and can be purchased at bigonion.com. NOVEMBER IS These are examples of the special events during CUNY Month at our 24 colleges, OPENING FUNDRAISERS graduate and professional schools. FRIDAY, NOVEMBER 28, MONDAY, NOVEMBER 24 – Chancellor James B. Milliken THROUGH SATURDAY, JANUARY 3 Chabad’s Children of Chernobyl presents It’s time for those visions of CHILDREN AT HEART GALA its , which includes pen houses, admissions and fi nancial aid workshops, sports tournaments, lectures, performances, book talks, and sugarplums to dance in your head— a dinner and a “celebrity/fantasy auction” for and on the stage. The New York the rescue and care of children who are Opanel discussions—most of them free—with world-class faculty, high-achieving students and honored guests. City Ballet returns with its annual exposed to lethal contamination from the holiday tradition of presenting Chernobyl nuclear disaster. Jon Voight GEORGE BALANCHINE’S THE presides over the event as the master of NOV. 11-NOV. 20 NOV. 13-DEC. 8 NOV. 19 NOV. 20 NUTCRACKER. Join the Sugar Plum ceremonies. The black-tie gala is at 5 p.m. at VETERANS DAY THE FACES OF ISLAM FREEDOM HOSTOS REPERTORY Fairy, the Mouse King and the rest Chelsea Piers’ Pier 60 at West 23rd Street Exhibition Photography Exhibition SUMMER COMPANY: YOUNG HOSTOS for an enchanting evening of family and the Hudson River. Tickets start at College of LaGuardia Film Hostos Community Staten Island fun. The ballet is performed at $1,000 and can be purchased at cah.net. Community College City College College various times at the David H. Koch Free Free of NY 7 p.m. $10 Theater at 20 Lincoln Center Plaza. MONDAY, NOVEMBER 24 6 p.m. Free Tickets are $35 to $235 and can be S.L.E. Lupus Foundation hosts its annual NOV. 20 NOV. 21 NOV. 21 purchased at nycballet.com. LIFE WITHOUT LUPUS GALA 2014, this year celebrating breakthroughs in research. The CUNY GRADUATE JOHN LEGUIZAMO: THE JOHNNY PACHECO benefit includes cocktails, dinner, an auction STUDIES FAIR “LATIN HISTORY FOR LATIN MUSIC AND JAZZ FESTIVAL and a performance by Tony Bennett. The Hyatt Grand Central DUMMIES” Lehman College black-tie event takes place at 6:30 p.m. at 2-7 p.m. Free College of Staten Island 10 a.m.-4 p.m. Free the American Museum of Natural History 8 p.m. $35, $30 at Central Park West at 79th Street. Tickets start at $1,500 and can be purchased at NOV. 21 NOV. 21-NOV. 22 NOV. 24 secure.lupusny.org/2014-life-without-lupus- WALTER MOSLEY LYSISTRATA CONTEMPO II paul kolnik paul gala. UNBOUND AND Baruch College Brooklyn UNRESTRICTED 7:30 p.m. College City College of NY $10 7 p.m. Free MARK YOUR CALENDAR… 6:30 p.m. Free

WEDNESDAY, JANUARY 28 FANS OF QUIRKY FEMALE ARTISTS, REJOICE. BAM brings together Fulbright Scholars Melody Mills, Macaulay Honors College at the Me and You and Everyone We Know writer/director and the We Chose CUNY! Baruch College, and professor Daniel DiSalvo, City College

voice of our generation (or at least, a voice of a generation) for cole todd MIRANDA JULY IN CONVERSATION WITH HOST LENA DUNHAM. The Girls creator speaks #cunymonth cuny.edu/cunymonth facebook.com/cunyedu CUNY TV-Channel 75 with Ms. July (pictured) in celebration of her debut novel, The First Bad Man. The talk takes place at 8 p.m. at the BAM Howard Gilman Opera House at 30 Lafayette Ave. Great Colleges, Great Deals on Gear at theCUNYstore.com in Brooklyn. Tickets are $35 to $50 and can be purchased at bam.org.

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