Duell Family Sells to Gary Barnett P. 7 | New Yorkers Get Their Guns P

CRAINS

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Hospitals’ $2.5 billion bailout P. 5 | Duell family sells to Gary Barnett P. 7 | New Yorkers get their guns P. 14

® FEBRUARY 1-7,2016 | PRICE $3.00 NEW YORK BUSINESS FLIPPED OUT The most lucrative property resales of the past year and why the easy money might be over PAGE 12

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FEBRUARYCRAINS 1-7, 2016

FROM THE NEWSROOM | JEREMY SMERD Access denied IN THIS ISSUE 3 AGENDA

I THOUGHT I HAD difficulty getting around during the recent 4 IN CASE YOU MISSED IT blizzard until I saw an abandoned wheelchair on the 5 HEALTH CARE sidewalk near my home in Brooklyn. I could only imagine 6 ASKED & ANSWERED the poor soul who decided it was more hindrance than help. Junior’s expands 7 REAL ESTATE its cheesecake The subways were still closed, not that they would 8 SPOTLIGHT empire have made life any easier; the nearest stations are not 9 VIEWPOINTS among the 88 accessible ones in the system. Sasha Blair-Goldensohn, a wheelchair user since a 10 THE LIST falling Central Park tree branch severed his spine in 2009, returned to the city on Amtrak They call it progress, FEATURES a day after the snow settled. But he got stuck inside Penn but it’s leaving 12 COVER STORY Station in part because the only working elevator on the “ 14 SMALL BUSINESS Broadway line took him to a train that wasn’t running. wheelchair users 20 GOTHAM GIGS It was a familiar scenario. A Crain’s analysis of by the curb 21 SNAPS Metropolitan Transportation Authority data found that MTA elevators are out of service for an average of 2.5 days a month. 22 FOR THE RECORD “There’s no outcry when the elevators go out,” Blair-Goldensohn noted, 23 PHOTO FINISH “because nobody expects them to be working.” Elevators stop running without notice, leaving wheelchair users dependent on Good Samaritans to carry them. Blair-Goldensohn’s experience is hardly what the authors of the Americans With Disabilities Act had in mind when they required governments to provide equal access to public transportation. The vagaries of the subways are why so many wheelchair users depend on Access-A-Ride vans, but at great cost. The MTA spends about $600 million a year, and Medicaid an additional $200 million, to transport disabled New P. 6 BAM’s Katy Clark Yorkers when a cab ride would be so much cheaper. That’s why advocates were so pleased in 2014 when the Taxi and Limousine Commission implemented a 30- CORRECTION cent surcharge to pay for half the cab fleet to be outfitted with wheelchair lifts. Mets’ radio broadcaster HOWIE ROSE’s signature call after a New York win is “Put it in the books!” His last name was mis- But the program may be destined to fail. I got a look at the shortcomings of the stated in the Jan. 25 column, “With record employment, let’s wheelchair lifts when accessibility consultant Mark Longo showed up outside our call it the Bloomberg-de Blasio boom.” newsroom last week. The Nissan NV200, the city’s official taxi, is so small that its $15,000 lift can’t even accommodate electric wheelchairs. And only one other passenger can fit in the car when the lift is in use. That means Longo’s fiancée, who has used a wheelchair for 22 years, can’t ride in a taxi with both of her daughters. “In that vehicle, wheelchairs are so much of an afterthought,” Longo said. Uber may be a bigger problem for advocates. While users can order a wheelchair ON THE COVER: One Madison taxi through Uber’s app, the company is not required to make its fleet accessible, PHOTO: BUCK ENNIS even as it replaces cabs. “They call it progress,” said United Spinal Association CRAIN’S COMPOSITE: President James Weisman. “But it’s leaving wheelchair users by the curb.” WALLY KONEFAL

DIGITAL DISPATCHES CONFERENCE CALLOUT MARCH 11 Go to CrainsNewYork.com READ: CRAIN’S BUSINESS City Councilman David BREAKFAST FORUM Greenfield, defying convention, says making parking free on > Carl Heastie will be the first Black Friday, the busiest shop- Assembly speaker featured at a ping day of the year, would Crain’s event—in the middle of encourage more shopping. the state’s budget season, no Traffic experts say the change less. He will deliver remarks and would create chaos. field journalists’ questions on the ■ top issues facing New York. Health employers want Gov. Andrew Cuomo to pick up the NEW YORK ATHLETIC CLUB tab if the statewide minimum hourly wage is raised to $15. The salary 8 a.m. to 9:30 a.m. increase would cost hospitals, nursing [email protected] homes and home care providers $2.9 billion annually once fully implemented Vol. XXXII, No. 5, February 1, 2016—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double in 2021, the Healthcare Association of issues the weeks of June 27, July 11, July 25, Aug. 8, Aug. 22 and Dec. 19, by Crain Communications Inc., 685 Third Ave., New York State estimated. New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. LISTEN to a podcast on our stories For subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one year, $179.95 two years.(GST about real estate flips and the fate of No. 13676-0444-RT) struggling hospitals in Brooklyn and

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AGENDAWHAT’S NEW FEBRUARY 1, 2016 Our response to the lobbying rule: One absurd policy deserves another

obbyists are the folks paid by interest groups to persuade diem to supplement our government to do their bidding. They got the moniker salaries. We’ll get five- long ago by hanging out in the lobbies of government figure bonuses, too, for buildings waiting for officials to happen by so they could chairing any committees Lbend their ear on a client’s behalf. Lobbying is far more sophisticat- we create, whether or not ed now, so public disclosure of lobbyists’ identities, clients, fees they pass any bills or even and basic information about their interactions with government meet, for that matter. We’ll is required. have guaranteed pensions That makes sense: If a lawmaker advances a bill at the behest of a (even if we are convicted of lobbyist who used to be his chief of staff and has donated money to felonies), slush funds and his campaign, voters should know, so they can judge for themselves no-show jobs at law firms. whether the legislator is serving the public’s interest or his own. Taxpayer-funded staffs will But last week, the state’s ethics agency expanded the definition do any work we don’t feel of lobbying by equating newspaper editorial boards with elected like doing. Drivers will officials. By a 10-3 vote, the Joint Commission on Public Ethics chauffeur us around. Big newspapers will have state helicopters and deemed attempts to sway opinion writers subject to the same dis- planes at their disposal, too. closure requirements as traditional lobbying. Discussion between Taking a cue from politicians who draw districts and pass laws to private parties, it ruled, is every- protect their seats, we’ll craft rules to body’s business. If journalists are the legal equivalent preclude new publications from com- It is, of course, absurd—and of state legislators, we should have peting with us. The state will pay our likely unconstitutional—to treat their power and privileges, too printing and mailing costs, just as it editorial boards like lawmakers, does for legislators. Our marketers will and to make public who talks to us even use DMV records to wish New and about what. Yorkers happy birthday on their special day, as some lawmakers do. But if journalists are the legal equivalent of state legislators, we’d (The ethics agency allows all of this.) also like to have their privileges. Best of all, instead of just opining about laws, we hitherto humble From now on, we’ll work only six months a year and no more scribes will actually pass them. than four days a week—or less if we want to. For each day we’re at And, of course, our names shall be preceded by “The Honorable.” work, even if our sessions last just a few minutes, we’ll collect a per This is going to be great. – THE EDITORS

FINE PRINT Women in New York state who worked full-time earned a median salary of $808 a week in 2014. That’s 84.6% of the $955 median weekly earnings of their male counterparts, the U.S. Bureau of Labor Statistics reported last week. Hawaii had the highest female-to-male earnings ratio among the states, 92.8%; Wyoming had the lowest at 67.7%.

BY GERALD SCHIFMAN STATS 25 WORDS OR LESS SICK DAY CHIPOTLE will close all its Number of E. coli cases

North American attributed to Chipotle’s NYC CITY AND THE You can’t cover the locations “ locations Feb. 8 to 0 discuss food safety circus unless you after customers can write about one were infected with Chipotle’s ranking among the 30 largest fast-food chains E. coli and salmo- in the five boroughs, as measured by average Health of the biggest ele- nella. But in the city, 30 Department inspection score in the past year its restaurants phants in the room have other problems. Average inspection score of Chipotle —Bloomberg Politics’ Washington restaurants in the city, putting it at the low end of an A grade news director, Kathy Kiely, who 12.6 resigned after concluding she couldn’t properly cover the potential Number of violations for undercooked food presidential bid of company and filth flies, respectively, at Chipotle’s owner Michael Bloomberg 34&33 NYC eateries within the past year

ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY SOURCES Crain’s analysis of NYC Depart- BLOOMBERG NEWS BLOOMBERG ment of Health restaurant inspection data, Centers for Disease Control and Prevention

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AGENDA ICYMI CRAINS EDITOR IN CHIEF Rance Crain publisher, vp Jill R. Kaplan assistant to the publisher Alexis Sinclair, 212.210.0701 EDITORIAL Republicans push for a editor Jeremy Smerd assistant managing editors Erik Engquist, NYC tax cap. But why? Peter S. Green web editor Amanda Fung copy desk chief Steve Noveck art director Carolyn McClain hould New York City be subject to the photographer Buck Ennis same property-tax cap as the rest of the senior reporters Joe Anuta, Aaron Elstein, Matthew Flamm, Daniel Geiger state? Senate Republicans are promoting reporters Rosa Goldensohn, S Jonathan LaMantia, Caroline Lewis the idea again, four months after Majority data reporter Gerald Schifman Leader John Flanagan touted it at a Crain’s forum. web producer Peter D’Amato columnist Greg David The move has raised eyebrows because while contributing editors Tom Acitelli, Theresa Agovino, Paul Bennett, the city’s developers and landlords support Barbara Benson, Erik Ipsen, Judith Messina, Cara S. Trager the effort and are allies of Flanagan’s ADVERTISING Republican conference, expanding the cap has www.crainsnewyork.com/advertise advertising director Irene Bar-Am not been an industry priority. Moreover, the [email protected] or 212.210.0133 Senate GOP’s constituency is almost entirely senior account managers Zita Doktor, Jill Bottomley Kunkes, Rob Pierce, outside the five boroughs. Stuart Smilowitz So why the push? Several reasons. It’s a account managers Jake Musiker senior marketing coordinator favor to Staten Island’s Andrew Lanza, one of two LeAnn Richardson JOHN FLANAGAN ANDREW CUOMO sales/events coordinator Ashlee Schuppius Republican senators in the city and the spon- 212.210.0282 [email protected] sor of a bill to bring the cap here. It promotes ONLINE the cap—which makes it hard for localities to hike property taxes more than 2% annually and is pop- general manager Rosemary Maggiore 212.210.0237 ular with suburban and upstate voters—in a crucial election year for senators. They can also use the [email protected] CUSTOM CONTENT issue to harass Mayor Bill de Blasio, which they relish, and as leverage in ongoing budget negotiations. director of custom content Patty Oppenheimer 212.210.0711 In a way, the cap proposal helps Gov. Andrew Cuomo: He has said that the city can absorb cuts in state aid [email protected] because its exemption from the cap has allowed it to collect billions of additional tax dollars. EVENTS www.crainsnewyork.com/events But business groups said the GOP’s effort ignores what’s really needed: comprehensive reform to director of conferences & events Courtney Williams, 212.210.0257 correct disparities between (and within) the city’s four property-tax classes. However, that’s a polit- [email protected] ical hornet’s nest that state lawmakers simply won’t touch. — ERIK ENGQUIST manager of conferences & events Adrienne Yee AUDIENCE DEVELOPMENT director of audience & content partnership development Council to vote on horses and pay hikes DATA POINT Park Lane conversion scrapped Michael O’Connor, 212.210.0738 [email protected] The City Council is scheduled to THE PRICE OF NO. 2 HEATING Developer Steve Witkoff will hold CRAIN’S 5BOROS vote Feb. 5 on Mayor Bill de Blasio’s off on converting Central Park www.5boros.com OIL FELL TO $2.35 A GALLON plan to retire some carriage horses South’s Park Lane Hotel to condos, Irene Bar-Am, 212.210.0133 [email protected] LAST WEEK, ITS LOWEST PRICE and move the rest to a stable in as competition crowds the luxury SPECIAL PROJECTS Central Park, as well as on a propos- IN 10 YEARS, AND 48% BELOW market. “Velocity is not what it manager Alexis Sinclair 212.210.0701 al to increase their own salary by was,” Witkoff told Bloomberg News. [email protected] ITS 2014 PEAK REPRINTS 32%, to $148,500 a year. Watchdog reprint account executive Krista Bora group Citizens Union faulted the Slate moves to Brooklyn 212.210.0750 council for failing to hold public Venerable online magazine Slate is PRODUCTION production and pre-press director hearings on the pay raise. tional failure,” according to an moving from the media hub of Simone Pryce independent report commissioned Manhattan to 21,000 square feet in media services manager Nicole Spell Lobbying journalists by Comptroller Scott Stringer, who Brooklyn’s MetroTech office center. SUBSCRIPTION CUSTOMER SERVICE www.crainsnewyork.com/subscribe The New York State Joint pledged to fix the problems. (See “New York’s creative class no longer [email protected] Commission on Public Ethics ruled Greg David, Page 9.) lives in Manhattan,” a spokes- 877-824-9379 (in the U.S. and Canada). that public-relations professionals woman told Advertising Age. $3.00 a copy for the print edition; or $99.95 one year, $179.95 two years, for print who talk with news organizations’ Hamptons prices rise again subscriptions with digital access. editorial boards would have to reg- Nothing succeeds like excess. The to contact the newsroom: www.crainsnewyork.com/staff ister as lobbyists and report the average price of Hamptons home 685 Third Ave., New York, NY 10017-4024 conversations. (See Page 3.) sales in the three months ended phone: 212-210-0100 fax: 212-210-0799 Dec. 31 was $2.38 million, up 16% Entire contents ©copyright 2016 Outsourcing Rikers reform from the year-earlier period and the Crain Communications Inc. All rights reserved. ®CityBusiness is a registered The de Blasio administration will highest since 2005, brokerage trademark of MCP Inc., used under license pay consulting firm McKinsey & Co. Douglas Elliman Real Estate and agreement. CRAIN COMMUNICATIONS INC. $7.5 million in 2016 to continue appraiser Miller Samuel reported. BOARD OF DIRECTORS work on a plan to reduce violence at Wall Street added some 12,600 jobs chairman Keith E. Crain the Rikers Island jail, following a last year, with bonuses up 2%. president Rance Crain treasurer Mary Kay Crain, Cindi Crain similar contract with the company executive vp, operations William Morrow for $1.7 million in 2014 and 2015. Ticket fixing executive vp, director of strategic Buying sports and concert tickets is Zika virus arrives operations Chris Crain executive vp, director of corporate Open subway cars “a fixed game,” Attorney General At least seven New Yorkers have operations K.C. Crain Accordion-like trains with no doors Eric Schneiderman said after his returned home with the Zika virus senior vp, group publisher David Klein vp/production, manufacturing David Kamis between cars may be running on the A office found that more than half the after traveling to Latin America, city chief financial officer Thomas Stevens and R lines by 2020, the Metropolitan tickets to many sports and music health officials said. But they chief information officer Anthony DiPonio Transportation Authority said. events are kept off the public mar- noted there’s little chance of the founder G.D. Crain Jr. [1885-1973] ket. He said tickets are often held chairman Mrs. G.D. Crain Jr. [1911-1996] virus spreading here, as the secretary Merrilee Crain [1942-2012] City pension troubles for sponsors; authorized sellers add mosquito that carries it isn’t native The city’s $160 billion pension sys- fees of as much as 21%; and resellers to this region.

BUCK ENNIS, GETTY IMAGES tem is likely to suffer an “opera- jack up prices by 49% to 1,000%.

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AGENDA HEALTH CARE

Hospitals call for $2.5 billion bailout of struggling facilities

Health insurers cry foul, fearful of further consolidation BY JONATHAN LAMANTIA Caplin & Drysdale is pleased rooklyn hospitals in the bor- KENNETH to announce that ough’s poorest neighborhoods RASKE’S plan have teetered on the edge of would be Rachel L. Partain collapse for years, requiring welcomed by distressed has become a Member of the Firm Bhundreds of millions of dollars in state hospitals. subsidies to continue acting as the dĂǆŽŶƚƌŽǀĞƌƐŝĞƐͬdĂǆ>ŝƟŐĂƟŽŶ safety net for some of New York City’s 212.379.6071/[email protected] most vulnerable residents. Among them is Kingsbrook Jewish and Medical Center in East Flatbush, where 87% of patients pay for care through Medicare and Medicaid. Those govern- Jeanna Rickards Koski ment-financed programs haven’t kept has become of Counsel pace with the growth of hospital expens- ĂŶŬƌƵƉƚĐǇͬŽŵƉůĞǆ>ŝƟŐĂƟŽŶ es, said Dr. Linda Brady, Kingsbrook’s “Many systems are interested in those president and chief executive. hospitals,” said James Smith, a health 202.862.5069/[email protected] “That’s a structural gap that’s almost care consultant at GE Healthcare impossible to solve on your own,” she Camden Group. “If they had better bal- 600 Lexington Avenue, 21st Floor | New York, NY 10022 | 212.379.6000 said. ance sheets and [the systems] didn’t One Thomas Circle, NW, Suite 1100 | Washington, DC 20005 | 202.862.5000 For that reason, Kingsbrook has have to take on all the risks associated www.caplindrysdale.com been looking for a potential partner to with past decisions, they would be inter- help it survive. But attracting one of the ested in taking those opportunities on.” city’s powerful health systems, even The money is there, though it’s not with Kingsbrook’s improving patient- quite the $500 million-a-year-for- satisfaction scores, has proved elusive. five-years Raske is seeking. Cuomo’s The hospital’s balance sheet showed proposed budget includes $195 million PROMOTE. debts outweighing assets by $29.5 mil- in funding for restructuring not only Why not? lion at the end of 2014. hospitals, but also clinics, nursing “Most people are not stepping their homes and home care agencies. There’s For more information contact Krista Bora, Reprint Account Executive foot into central Brooklyn,” Brady said. also a separate $1.2 billion Capital [email protected] • tel 212.210.0750 “I haven’t seen a mad rush.” Restructuring Financing Program from Last week, the state Department of an earlier budget for health care reno- Health made public a “watch list” of 28 vations and an additional $700 million hospitals that find themselves in a similar earmarked for transforming medical situation, kept open thanks to their facilities in central and east Brooklyn. safety-net status, government help and Insurers don’t like the idea of the big political pressure but considered undesir- systems getting even bigger. A spokes- able from the point of view of would-be woman for the New York Health Plan acquirers. Besides Kingsbrook, three oth- Association called Raske’s plan a ers are in Brooklyn—Brookdale University taxpayer-funded bailout of hospitals. Hospital and Medical Center, Interfaith Facilitating these mergers would give Medical Center and Wyckoff Heights the state’s sprawling health systems Medical Center—and one is in Queens: St. more leverage in negotiations. Break Away... John’s Episcopal Hospital. All have only as “We certainly object to allocating many as 15 days’ cash on hand. health care dollars—which are The state has been propping up these stretched thin to begin with—to facilities for years. In 2015, New York already profitable hospitals that are and make your business better shelled out about $325 million to the 28 looking to strengthen market power hospitals, and Gov. Andrew Cuomo’s through consolidation,” she said. budget recommends an additional $450 That’s not the only way health sys- million in the fiscal year that begins tems are challenging insurers. The shift April 1. toward managing patients’ health rather Kenneth Raske, chief executive of the than treating them when they’re sick Greater New York Hospital Association, has also motivated systems to start offered a more permanent solution at a offering insurance products, such as state budget hearing last week: Pay the Northwell Health’s CareConnect, mak- wealthiest hospital systems $2.5 billion ing mergers and partnerships more like- over five years to “adopt and adapt these ly so a network can better control costs. facilities to the new world.” Still, with systems interested in grow- Mount Sinai Health System, New ing, Kingsbrook’s Brady believes Raske’s York-Presbyterian, NYU Langone Health plan might be the catalyst that could Industries served: System and Northwell Health want to finally help the hospital find a suitor. Financial Services . Manufacturing & Distribution . Technology

expand their presence in Brooklyn. Some “Places like central Brooklyn that 1RWIRU3URÀW . Retail . Construction . Architecture & Engineering . . have already bought physician practices don’t have the more attractive payer Real Estate Healthcare Transportation & Shipping Media, Entertainment & Telecommunications or opened branches in the borough. In mix are in a position where it’s more of 2015, NYU Langone merged with a challenge to get a larger system inter- Lutheran Medical Center in Sunset Park, ested,” she said. “This is exactly why 488 Madison Avenue, New York, NY 10022 and Northwell Health signed an agree- the governor put this in his budget pro- 50 Jericho Quadrangle, Jericho, NY 11753 10 Esquire Road, New City, NY 10956 ment with Maimonides Medical Center in posal, and it’s why Ken Raske is advo- www.grassicpas.com Ⅲ BUCK ENNIS Borough Park that could lead to a merger. cating for this.”

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AGENDA ASKED & ANSWERED ARTS & CULTURE

INTERVIEW BY MIRIAM KREININ SOUCCAR

KATY CLARK Brooklyn Academy of Music

aty Clark became president of the Brooklyn Academy Our audiences are of Music last August, taking the reins of the growing “now 50% Brooklyn performing-arts complex from its celebrated chief of residents. That’s 16 years, Karen Brooks Hopkins. Clark previously ran up from 41% in Kthe Orchestra of St. Luke’s in Manhattan, where she spearheaded 2010 and 34% in the campaign to build the much-heralded DiMenna Center for Classical Music, a $37 million home for the orchestra that also 2004. How we provides rehearsal and performance space for the city’s musicians. evolve with the A former professional violinist, Clark is making a major career jump neighborhood is in helming BAM, an arts organization with a $58 million annual very important budget—eight times larger than that of her previous employer.

What are the most pressing tasks in your new role at BAM? The biggest thing now is the campus expansion. We have two large projects underway. One is BAM Strong, a $25 million project that unites three of our spaces on Fulton Street. It includes all new seats at the Harvey, which we’ve just done, and a new structure to give people accessibility to BAM when shows aren’t happening. It will have a café and a space for visual art, like a lounge. The other is the BAM Karen, a new cultural space in an apartment building going up that will have DOSSIER more movie theaters and a permanent home for BAM’s archives. NAME Katy Clark How much money do you have left to raise for these projects? WHO SHE IS President, For BAM Strong, we have raised $17 million out of $25 million. BAM Brooklyn Academy of Music Karen will be a $20 million project, and we have half of that AGE 47 committed. My biggest job is to raise the $18 million left on those. BORN Swansea, South Wales EDUCATION University of How is the fundraising climate right now? Cambridge, degree in history; It was a slow climb out of the recession, but it’s in a healthier place. Royal College of Music in Things never go back to how they were, though. Corporations aren’t London; University of Illinois, M.A. in the biggest portion of the pie. Everybody is seeing more gifts from violin performance individuals and boards. JUST MOVED A month ago, Clark, her husband and her two How are BAM’s finances and what needs improvement? children moved to Park Slope Our budget mix has remained constant at 40% earned and 60% from Washington Heights to ease raised. Our endowment is approaching $100 million, and for the her commute. Now she walks budget size we are, it should be larger. It would lighten our load on to work, which takes about a half-hour. annual fundraising if we had a bigger endowment, and that’s something I will look at in the coming years. Three times the budget ALL IN THE FAMILY Clark size is the rough rule of thumb for endowment. met her husband, David Moody, in graduate school in Illinois. A pianist and conductor, BAM has been working to revitalize its Fort Greene neighborhood. Is that Moody teaches at the Juilliard finally happening? School and works at the You only have to walk out our front door to see. There are maybe four Glimmerglass Opera. Their large apartment buildings going up around us with about 15,000 new son, 17, plays guitar and residents about to move into our neighborhood. There are 60 cultural piano and attends the organizations now in the Brooklyn Cultural District, and there’s been a Bronx High School for the 149% increase in the number of Brooklyn cultural nonprofits since Visual Arts. But their 2005. Local cultural institutions attracted $300 million in economic daughter, 12, wants nothing to do with the activity and 4.5 million visitors in 2013. So we are big business. arts. She is a three- sport athlete.

Is that growth affecting BAM’S audiences? BUCK ENNIS Yes, our audiences are now 50% Brooklyn residents. That’s up from 41% in 2010 and 34% in 2004. How we evolve together with the neighborhood is very important.

What are you most looking forward to in the coming season? Winter/spring is a giant season. This spring we have a major residency by the Royal Shakespeare Company. There will be four plays on a global tour sponsored by JPMorgan that will be here for six weeks starting in March. We also have David Hare’s play The Judas Kiss, with Rupert Everett. Also the BAMkids Film Festival in February—it’s becoming a big local-community oriented event.

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AGENDA REAL ESTATE

Gary Barnett pursuing the Duell family portfolio

City records show a series of sales to Extell entities BY DANIEL GEIGER

he Duell family is back in from Harlem’s Abyssinian MOSCOT BUILDING: the market, selling off Development Corp. MOSCOT BUILDING: The Duell family is pieces of its once-large No price has yet been published selling. New York City portfolio of for the Sixth Avenue deal. City Tcommercial and multifamily prop- records show that 126,750 square erty. feet of residential space can be built Barnett also purchased 27 to the Jackson Group for $83 million The family is arranging to sell on the site—likely a big draw for a Washington Square North, a seven- in December, and a small Upper 530 Sixth Ave., a 17,000-square- busy residential builder like story apartment building on the East Side rental apartment building, foot commercial building on the Barnett. corner of Macdougal Street, accord- 957 Park Ave., to real estate corner of West 14th Street best The Duells sold an apartment ing to a person familiar with the investor Stanley Wasserman for $16 known for the Moscot Eyewear building at 200 E. 34th St. in transaction. City records list the million. store on the building’s second floor, December for $11 million, to a com- sale price in that deal as $20 million. Barnett has been successful at to Gary Barnett, according to a per- pany whose sole owner is Dov The purchaser is a limited-liability clawing property away from long- son familiar with the property. Hertz, executive vice president for company offering few clues to its time owners. In 2013, he bought a Barnett is building a residential acquisitions at Barnett’s Extell ownership. stake in a 14-building package of spire at 225 W. 57th St. and scooped Development. The building is Other recent sales by the Duells office properties owned by brothers up the former Pathmark site at known for the Cinema Cafe & Bar include a five-story retail and office Michael and Frank Ring, eventually 125th Street and Lexington Avenue restaurant in its base. building at 712 Madison Ave., sold buying the pair out of the buildings. Ⅲ Chetrit breaks up with Cornell Developers split retail parcel on 34th Street BY JOE ANUTA Major Bronx Development MANHATTAN-BASED Chetrit Group and Brooklyn- based Cornell Realty Management have dissolved Opportunity at their partnership and split the parcels they’ve acquired on West 34th Street between Seventh and The New York Botanical Garden Eighth avenues. Each will take 80 feet of frontage. Now Cornell Realty is planning a four-story Mixed-Use Residential/Retail-Hotel retail project on its half of the holdings, and has Development Opportunity secured a $48.5 million bridge loan from Madison Realty Capital. That has let Cornell buy out Chetrit, take control of the properties on the west side of the block, at 257-263 W. 34th St., The New York Botanical Garden

ve B and begin prepping the site. (NYBG) is requesting that developers o er A ta n i ca “This is a prime retail location, and it has only submit proposals for the development Webst l re E19 S qua become more so over the last few years,” said 9t NYBG of a mixed-use project to be located h St Garage Bedford Josh Zegen, managing principal of Madison, on a 53,375 square foot parcel of which closed on the loan within 10 days of being land located on the southeast corner Park Blv 2868-72 approached by the developer. Webster Ave It wasn’t clear when construction on the of Bedford Park Boulevard and d 410-16 Webster Avenue, Bronx, New York. ebster Ave Bedford Park Blvd 35,000-square-foot retail project would begin. It W 2850-58 Webster Ave d Blv could accommodate a single-use tenant, or a The development will consist of a n er th ou number of smaller retailers, Zegen said. hotel on the northerly portion of the S Chetrit has not announced plans for its half of site with a minimum of 125 rooms and the West 34th Street site. The company once residential/retail uses on the southerly New York proposed a 17-story development with a 180- Botanical Garden d portion of the site. The total size of lv B rn room hotel, in addition to retail. e the development is approximately th u o S HELL’S KITCHEN REVAMP 300,000 square feet. The city is seeking a developer to raze most of a Hell’s Kitchen block and build hundreds of apartments, retail space and a new 150,000- For more information, please contact: square-foot homeless shelter and counseling facility that would be run by Covenant House, Frank P. Liantonio which owns part of the parcel. 1 212 841 7887 The property lies along 10th Avenue, between [email protected] West 40th and West 41st streets, and is bounded Tom McConnell on the southeast by exit ramps from the Lincoln Tunnel to the Port Authority Bus Terminal. The 1 212 841 7805 site could host about 700 apartments, with 40% [email protected] of the units designated affordable. cushmanwakeﬁeld.com Covenant House bought three buildings in the parcel in the 1970s. Developers may use air rights Ⅲ BUCK ENNIIS to help pay for its new home.

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AGENDA SPOTLIGHT SMALL BUSINESS

Junior’s takes its cheesecake and heads for the big time

Warehouse move follows expansion BY MYLES GORDON

he cheese grows in Brooklyn. We mean Junior’s, baker of the velvety, melt-in-your mouth local legend that is its signature cheesecake. Under big-cheese Alan Rosen—the third-generation owner of the family business that has been serving this quintessential New TYork confection at the corner of Flatbush and DeKalb avenues since 1950—Junior’s cheesecake is going national, and beyond. During the past decade and a half, Rosen, 45, has opened outposts in Grand Central Terminal, in the Theater District and at Foxwoods Resort Casino in Connecticut. Junior’s, which 25 years ago was valued at about $7 million, is now a $70 million business with 850 employees. This past summer, the company spent $7 million to move its bakery from a 20,000-square-foot space in Maspeth, Queens, to a facility more than five times larger on seven acres in Burlington, N.J. It includes a warehouse, a bakery, a shipping facility and a retail showroom. Rosen expanded his baking staff to 95 from 55, many of whom made the move to New Jersey, and increased the number of ovens to 11 from three, allowing for a slightly less hectic production schedule of 10 hours a day, seven days a week, from what had been a punishing 24/7 routine. “We couldn’t make another cake” in the old place, said Rosen, who lives, breathes and, of course, eats cheesecake. With the expansion, Junior’s—which Rosen lovingly referred to as “one of my children … a small but good New York company”—is growing up, and out. It now sells 2 million cheesecakes a year, about 12% through wholesale distribution, mail order and QVC. Rosen said the mail-order business was started by his father, Walter, and an uncle, Marvin—“This was before the Internet”—in an attempt to satisfy the hunger and taste memories of expatriate New Yorkers. Now Rosen has hired a national sales manager and is expanding in the northeast, which he sees as a natural growth area. He’s also planning to open his first two restaurants beyond the New York region—in Miami and JUNIOR ACHIEVEMENT: Boca Raton, Fla. Founder Harry Rosen’s grandson Alan is taking On supermarket shelves the iconic Brooklyn Farther afield, Rosen sees restaurant expansion fueled by the brand’s brand national. presence on supermarket shelves. Junior’s “authentic New York cheesecake” is sold by national and regional chains including Kroger, Wegmans, Tops, King Kullen, Publix, BJ’s and Costco, and in markets as far away as South Korea and Japan. “If we get people to try it, [they] say, ‘PIE’ CHART ‘This is what cheesecake is supposed to taste like,’ ” Rosen said. Cost of cheesecake Junior’s national expansion plans are not a half-baked idea, said ingredients Michael Whiteman, a partner in Baum + Whiteman, a restaurant consulting firm based in Brooklyn. The large number of tourists from nearby 68% cream cheese hotels who provide the customer base for Junior’s busy Times Square 10% eggs restaurant provide a ready-made entrée to national expansion, he said. 10% sugar “They have brand affection all over the country,” Whiteman said. 10% heavy cream “Very quietly, all by themselves, they’ve evolved into the quintessential vanilla New York restaurant.” 2% Rosen is the sole proprietor of Junior’s, having bought out his uncle— his father’s successor—15 years ago. Some of his earliest memories are of working in the bakery where his father, now 81, began working at 17. FOCAL POINTS “When I was a kid, if I wanted to see my dad, I went to work,” he said. “I loved it there.” LOCATION: Junior’s original restaurant is at the corner of Flatbush and DeKalb Junior’s has served cheesecake from the beginning. Everyone knew, avenues in downtown Brooklyn. A Times Square branch opened in 2006 off Rosen said, that “if we’re going to be a great restaurant in New York, we Shubert Alley, and others are in Grand Central Terminal and at Foxwoods in have to make great cheesecake.” The recipe hasn’t changed from the Connecticut. Next up: Miami and Boca Raton, Fla. original one, created for Rosen’s father by baker Eigel Peterson. “When I FOUNDERS: Harry Rosen founded Junior’s in 1950, on the site of a restaurant first started working there, the recipe was in someone’s head and then in he owned called the Enduro. His grandson Alan is now the sole owner. my dad’s handwriting on a piece of paper,” he said. PLAN FOR GROWTH: With a new bakery in Burlington, N.J., Rosen is expanding Junior’s was a successor to an earlier restaurant begun by Alan Rosen’s online and supermarket sales. grandfather Harry in the 1920s at the same location. Walter and Marvin Rosen bought the space (rebuilt in 1982 following a fire) for about $1 mil- NAME EXPLAINED: Harry named the restaurant Junior’s for his two sons, lion in 1981 from Dime Savings Bank, whose landmarked Beaux-Arts Walter and Marvin. Descendants of the founder of Miami’s now-defunct Juniors headquarters was built next door. (no apostrophe) said in 2006 that the Brooklyn establishment licensed its name Alan Rosen remains devoted to his piece of the borough’s tradition. and recipe from them. When developers who bought the bank building offered him $45 million BIG PROFIT: An independent analysis conducted for Crain’s shows the cost of a for the restaurant and its air rights, Rosen told them no. three-pound cheesecake to be $7.69 at the factory, including labor. The cake “How many things haven’t changed in 65 years?” he asked. “Not retails for $35.95 before tax and shipping, leaving a profit margin of 78.6%. Ⅲ BUCK ENNIS many. This is one.”

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AGENDA VIEWPOINTS

City’s pension problems go CITY’S ANNUAL PENSION COST Contribution (in billions) beyond operational issues $12 The comptroller must reassess the plans’ investment philosophy, as the best funds are doing $10.1 $10

LAST WEEK, Comp- As the chart shows, after stabi- Albany too, as the state faces its own troller Scott Stringer lizing earlier in the decade, the budget squeeze. But the pension released a report annual cost is scheduled to soar past payments will be going up and can’t $8 saying that his own $10 billion by 2020. Think about be deferred. So pensions will take a office’s oversight of that number this way: It is about bigger percentage of the budget, the investments of one of every 10 dollars the city crowding out other programs. $6 the city’s $161 bil- spends and is approximate- By the way, Stringer’s 2011 2020 lion pension system ly the same as the budget report was chilling. One GREG DAVID For fiscal years ended June 30 is teetering on an for the New York Police example: The city employs Source: Mayor’s Financial Plan operational failure. Stringer should Department. % just two people to oversee fix his management dysfunction, And the pension cost pro- 3.4 $10 billion in investments in but he needs to reassess his invest- jections are overly optimistic. RETURN last private-equity funds. The tions that the fees are so high that ment strategy too, because the city’s The city assumes it will earn year of city comptroller promises to the gains go to the managers, not annual contribution to pay for the 7% each on its pension fund. pension fund, make the city a national the pension funds contributing the pensions its workers earn—always a Last year, it fell short of that half its target leader in management of money. Even stock investments are burden—is about to become ever with just a 3.4% gain. So far pension funds. under scrutiny because pension more onerous. this year, it has actually lost money. Unfortunately, Stringer misses funds can’t make up what they lose Last month, the de Blasio admin- Unless there is a significant rebound the point. Smart pension funds are during market declines. istration added $600 million to the in the markets, hundreds of millions simplifying their investments. In The best pension systems in the pension payment for the current fis- of dollars more will be needed at the California, Calpers, the largest fund country are revamping their cal year, ending June 30. The move next budget revision. in the nation, is abandoning hedge investment philosophies, not their was necessary in part because Then there will be the crunch funds because their returns haven’t management. Ⅲ retirees are living longer, but prima- when the recession comes, whenev- come close to the benchmarks in rily because the city’s investment er that day arrives. Tax revenues will recent years. Other are considering GREG DAVID blogs regularly at performance last year was so poor. decline, and probably aid from axing private equity after revela- CrainsNewYork.com.

York Building Congress and its philan- clear: The Gansevoort Market Historic Scaffolds touch a nerve thropic arm, the New York Building District—and Gansevoort Street in Foundation, have been exploring for particular—was designated to preserve As do Gansevoort plans and criticism of CUNY workers’ sick time years as part of its effort to improve the area’s unique market history. The the look and feel of construction sites. developer can’t just randomly pick In December, we concluded a side- periods from the district’s history; A PLAGUE OF SCAFFOLDS for 12 years, who are the problem. I walk shed design competition, which otherwise one might well argue that I am Grace Gold’s older sister. Thank don’t care how many problems he has yielded four innovative concepts for the street should be restored to Indian you for helping everyone remember with the Landmarks Preservation code-compliant sheds that are far longhouses, which stood there when Grace (“Scaffold Commission or more attractive than standard ones. the village of Saponican existed on City,” Jan. 25). Department of While the designs cannot address the that very site in the 17th century. But Remembering her is Buildings—you’ll never length of time that some New York of course, such one-story structures the only way we as a convince me that if he communities are forced to endure the wouldn’t be as profitable as the 98- city can try to make tried diligently he presence of scaffolding and sheds, foot- and 120-foot-tall buildings the sense of the hows and couldn’t have resolved they can improve the quality of life of developer wants to build. whys of Local Law 10 these issues in less than local residents and businesses via LIBRARY LOVER (1980), Local Law 11 a dozen years. structures that look nicer, are less (1998) and the Façade MIKE MCGUIRE confining and let in more daylight. CUNY DESERVES EVERY CENT Inspection Safety Just as important, some of the If CUNY staff are given a generous Program in keeping This is amazing. city’s leading architects, engineers, amount of sick time, it’s because more the aging, crumbling There is a scaffolding contractors, building owners and time off is frequently what is offered infrastructure main- conspiracy in New York. scaffold builders identified designs to them by management during con- tained, our landmarks Great story. that are realistic, safe, cost-effective tract negotiations instead of more safely preserved, the HEIDI N. MOORE and easy to assemble, to encourage robust salary increases (Editorial, Jan. streets strewn with wide adoption by building owners. 25). So if Crain’s has an issue with the scaffolding, as we try to stop future Best story ever reported and writ- The Building Foundation is working amount of sick leave we accrue, you deaths of those going about their daily ten on New York City’s disgraceful with some owners now and hopes to can blame CUNY management. lives on New York City’s streets. scaffold plague. unveil a prototype in the near future. But since you brought it up, I have I still shiver when I think about STEVE CUOZZO FRANK J. SCIAME JR. been with CUNY nine years, and in all Greta Green and her family. If the Chairman, Design Review Committee that time I have never heard of even a landlord had only been held to task on CRAIN’S DESERVES PRAISE for producing New York Building Foundation single incident of a person abusing Local Law 11, that baby would still be the most comprehensive look at the their sick leave. Why not? I’ll tell you: here with her family. scourge of scaffolding and sidewalk SHORT MEMORY ON BUILDING HEIGHTS Because our workloads are so outra- LORI E. GOLD sheds, which are a ubiquitous and The developers’ argument in “Fight of geous, we report to work even when wholly unappealing presence on the historic proportions” (Jan. 25) is pure- we are sick or we’d never be able to IT’S LANDLORDS LIKE the one cited in the New York City streetscape. ly self-serving. The Landmarks keep up. article, who has had a shed in place It is a vexing issue that the New Preservation Commission was very TRACEY HARDEN

CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to [email protected]. Send columns of 475 words or fewer to [email protected].

BUCK ENNIS Please include the writer’s name, company, address and telephone number.

FEBRUARY 1, 2016 | CRAIN’S NEW YORK BUSINESS | 9 20160201-NEWS--0010-NAT-CCI-CN_-- 1/28/2016 7:03 PM Page 1

AGENDA THE LIST NY AREA’S LARGEST HEALTH CARE NONPROFITS Ranked by 2014 total operating expenses

THE SCOOP TRENDS

NONPROFITS FACE TURBULENCE PROFITABLE NONPROFITS Six execs on Crain’s list made north of seven figures.

t’s been a challenging few years for New York’s health care non- EXECUTIVE ORGANIZATION COMPENSATION profits. The second-largest group on this year’s Crain’s list, the Visiting Nurse Service of New York, in late 2014 finalized a Daniel Reingold, President, chief executive Hebrew Home at Riverdale $1,939,756 Medicaid settlement with New York state and federal officials, Eli Feldman, President, chief executive MJHS $1,682,718 Iagreeing to pay $35 million to settle civil fraud claims related to its Michael Fassler, President, chief executive CenterLight Health System Inc. $1,432,648 managed long-term care plans. CenterLight Health System (No. 3) announced an agreement last Robert E. Detor, President, chief executive Long Island Home $1,371,947 month to pay $46.7 million to settle charges that its plans had fraud- Christopher Hillyer, M.D., President, chief executive New York Blood Center Inc. $1,270,865 ulently billed Medicaid. Edward McDermott Jr., Ludwig Institute for $1,064,196 Another nonprofit tackled a very different challenge: expansion in President, director Cancer Research the wake of the March 2015 bankruptcy and subsequent closure of the Federation Employment and Guidance Services. The Jewish Board of Family & Children’s Services (No. 11) took over $75 million worth of HEALTHY GROWTH behavioral health programs from FEGS on June 1, 2015. That transfer Of 20 industries tracked by New York State’s Labor Department, health care will be adding the of programs swelled the Jewish Board’s budget to about $250 million, most jobs. which it said made it the largest human-services agency in the city. “It’s a massive undertaking, even though the Jewish Board and Health care and social assistance Projected gain in employment from 2012 to 2022 many of our counterparts have taken over programs before and we’ve 142,290 even merged with other organizations,” Chief Executive David Rivel Professional and business services 132,850 said at the time. “There’s just nothing like the size and scope and the Accommodation and food services accelerated time frame of this transition. It’s truly unprecedented.” 87,820 Planned Parenthood Retail trade For (No. 13), perennial national attacks on its 44,200 mission of providing reproductive health care escalated in 2015. The Educational services nonprofit fought a political backlash after an anti-abortion group 37,980 Other services (except government) secretly recorded videos that it said showed Planned Parenthood offi- 35,060 cials illegally selling fetal tissue—accusations never substantiated by Construction several congressional and state investigations. Last week, a Houston 22,490 Arts, entertainment and recreation grand jury that was investigating the allegations instead indicted two 17,970 members of the group that made the videos. — BARBARA BENSON 0 30K 60K 90K 120K 150K

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10 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 1, 2016 20160201-NEWS--0011-NAT-CCI-CN_-- 1/28/2016 7:04 PM Page 1

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REAL ESTATE | PROPERTY FLIPS MILLIONS IN A MATTER OF New York’s real estate boom opened a world of easy money for those with the means to buy and flip luxury units. Now a surfeit of condos and a dearth of buyers spell the end of the good times MONTHS BY JOE ANUTA

n March 2014, a JPMorgan Chase managing Chemical, in February 2015. During the same builders get something even more valuable. director named Leslie Perkins paid $5 mil- time period, Dow Chemical stock rose by a The initial offering of condominiums in New lion for an Upper East Side condominium at modest 4%—which illustrates why this partic- York state is regulated by a special office under 141 E. 88th St. Almost exactly a year later, ular real estate play can be so attractive. the state attorney general called the Real Estate she sold it for $6.5 million—a 30% return “Whether [my clients] could retire or make Finance Bureau. Before developers can start before taxes and fees. that their business I don’t always know,” said signing contracts, bureau staffers must vet Perkins, who could not be reached to Bruce Cohen, a partner at real estate law firm highly detailed project plans. Vornado Realty comment for this story, is a type of well- Cohen & Frankel who puts together contracts Trust, for example, submitted 554 pages for its Iheeled New York City investor who has made fast for condo buyers. “But there are some who have luxury tower at 220 Central Park South. The money in recent years by buying apartments in made boatloads of money.” plans disclosed everything from how the condo new condominiums, in some cases so early on But the most lucrative flips of 2015 may be board will function to the offering price of every that units hadn’t even hit the market. Because some of the last. Manhattan sales data show that unit in the building. the attorney general’s office does not sign off on quick resales are becoming less profitable. Once 15% of the apartments are in contract new condominium offerings or conversions until Returns fell by half in the past year, to an average and the bureau declares a new building plan 15% of a development’s apartments are in con- of 15%. And real estate experts believe that as effective, developers typically begin to jack up tract, developers tend to start selling units at a more luxury condos in new towers come onto the prices to discourage potential buyers from wait- discount. Investors willing to take a risk on a market, supply will far outstrip demand. ing too long to sign a contract. At 220 Central building not yet completed, are there to pounce. Park South last year, Vornado raised prices by a “There is a herd mentality in real estate,” ‘Everybody’s retirement plan’ collective $659 million over seven months, said Leonard Steinberg, president of residential A flip isn’t defined by an exact time period, according to records from the real estate bureau. brokerage Compass. “And if someone is going but most brokers would consider it buying and These price gains can create instant equity to support a building early on, there has to be selling for a profit within a year or two (the legal for early buyers, who can then cash out by some incentive or some reward.” definition technically refers to a much rarer reselling their units. It is too soon to know In 2015, the best apartment flippers saw occurrence of reselling a signed contract before whether early 220 Central Park South buyers seven-figure gains within 18 months of buying the deal has closed). Friends and family mem- will flip, but Vornado announced last year it their units, according to data compiled by list- bers of developers, along with real estate bro- had sold $1.1 billion worth of apartments with- ings website CityRealty. Among them were kers and savvy investors, have been flipping for out even opening its sales office to the public. Robert and Kathleen Kaswell, founder of a real decades. “Early on, the [developer] and the broker are estate firm and a former CEO of Nine West “In the ’80s, this was everybody’s retirement [often] offering low-hanging fruit,” said Nancy Group, respectively. The husband and wife plan,” said Jonathan Miller, head of appraisal firm Packes, who runs a namesake real estate con- profited more than 50% on their unit in Walker Miller Samuel. sulting firm. Tower, located at 212 W. 18th St. in Chelsea. What makes for a good flip varies. The most Typically, smaller units on the lower floors, After closing on the 17th-floor apartment in common explanation for big deals is the sim- which net the lowest profit anyway, are the December 2013, they sold it for $10.7 million to plest: Developers discount some units by as ones that are underpriced. Penthouses and Andrew Liveris, the chief executive of Dow much 30% to entice early buyers. In exchange, more valuable offerings are held longer until

BIGGEST FLIPS IN MANHATTAN* % Building Address Purchased Paid Flipped Sold Profit Change Walker Tower 212 W. 18th St., 17D 12/23/13 $6,975,013 1/15/15 $10,750,000 $3,774,987 54% TriBeCa Summit 415 Greenwich St., PH-B 3/9/15 $7,744,000 12/1/15 $11,500,000 $3,756,000 49% Walker Tower 212 W. 18th St., 9E 3/24/14 $4,582,125 9/25/15 $7,650,000 $3,067,875 67% 508 W. 24th S 508 W. 24th St., 5NS 11/20/14 $9,571,550 1/16/15 $11,083,651 $1,512,101 16% Philip House 141 E. 88th St., 7F 3/12/14 $4,995,169 3/20/15 $6,500,000 $1,504,831 30% One Madison 23 E. 22nd St., 14A 11/24/14 $2,851,100 2/4/15 $4,325,000 $1,473,900 52% One57 157 W. 57th St., 44B 4/24/14 $7,029,425 9/22/15 $8,475,000 $1,445,575 21% 161 Hudson St. 161 Hudson St., 2A 7/3/13 $3,025,000 1/12/15 $4,400,000 $1,375,000 45% One Madison 23 E. 22nd St., 14B 12/11/14 $3,207,488 3/20/15 $4,475,000 $1,267,512 40% WALKER TOWER Millennium Tower Residences 30 West Street, PH2F 5/29/2014 $3,032,505 10/26/2015 $4,300,000 $1,267,495 42%

BUCK ENNIS *Ranked by profit Source: CityRealty

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prices climb. Of the 10 biggest Manhattan flips FOUR COMMERCIAL FLIPS WORTH NOTING BY DANIEL GEIGER in 2015, three were units purchased directly from the developer below the 10th floor, according to data collected by CityRealty. THE CITY’S RAPIDLY APPRECIATING real estate market in recent years has enabled property owners to reap Most developers write clauses into their con- hefty profits even if they did little to create value. In these four transactions last year, the rise was dramat- tracts forbidding the buyer to flip within a year ic enough to prompt the landlord to cash in. The deals show how investors in lower Manhattan and of closing, to avoid competition. Brooklyn—once undesirable neighborhoods for office space—scored big sums as the perception of those “If a developer has nine three-bedroom markets changed. The deal in SoHo illustrates how the value of retail space along the city’s prime shop- apartments for sale, it’s not good if you’re out ping corridors has soared. there trying to flip a three-bedroom as well,” said Andrew Heiberger, founder of brokerage 29 RYERSON ST., BROOKLYN Town Residential. BOUGHT: August 2013, $26.35 million Developer Steve Witkoff, on the other hand, SOLD: March 2015, $45 million allowed buyers to resell units before they had PLANNING TO TAP into Brooklyn’s burgeoning office market, real estate investor Chaim Miller, along with even closed on their contracts at his West partners, purchased the 250,000-square-foot office property but didn’t pour in the additional millions Village development 150 Charles—and then needed to make the vacant, 60-year-old former warehouse appealing to tenants. Instead they did noth- took a cut of the profits. ing—and wound up pocketing almost $20 million. They sold the property to Madison Realty Capital, a real estate investment and lending firm that had provided Miller with financing to buy the eight-story building. Last year’s winners “Chaim did great in the deal,” said Josh Zegen, Madison Realty Capital’s co-founder. The flippers of 2015 tended to be successful Miller was prescient to acquire an office building in Brooklyn before it was a solid bet. The growing entrepreneurs or finance professionals. In other pack of real estate investors scooping up properties that can cater to Brooklyn’s influx of office tenants words: investors with cash. has pushed up the price of buildings such as the one on Ryerson Street. And Zegen says it has appreciat- Dax DaSilva is a Canadian tech entrepreneur ed by as much as 50% since he bought it. But he’s not selling. who co-founded Lightspeed, a company that provides point-of-sale systems for small busi- 61 BROADWAY nesses. In March 2014, a trust registered in his BOUGHT: March 2014, $330 million name closed on an apartment in Walker Tower SOLD: December 2015, $440 million* for $4.6 million; 18 months later, the trust sold * Value based on sale of 49% share it for $7.7 million. RXR REALTY PURCHASED the 33-story, 700,000-square foot office building in lower Jonathan Ostrow, the founder of website Manhattan and 21 months later sold a 49% interest to an undisclosed Chinese MicControl.com, closed on a $2.8 million apart- investor in a deal that valued the entire property at $440 million. “We doubled our ment in HFZ Capital’s One Madison in November money,” said Scott Rechler, the chief executive of RXR Realty, a large Manhattan 2014 and resold it just three months later for a landlord, referring to how the company’s equity increased twofold in the deal. 50% gain. In many cases, these flippers actually The price of office buildings in lower Manhattan has shot up as the area has signed a contract months—and sometimes more become a more desirable place to work and rents have risen. RXR also has invested more than $10 mil- than a year, before actually closing. lion in upgrades to the property and signed several leases there, boosting its cash flow. Daniel Collin, co-chief executive of private- equity firm Monomoy Capital Partners, already 25 KENT AVE., BROOKLYN owned a unit on the seventh floor of 415 BOUGHT: January 2013, $31.75 million Greenwich in March 2015 with his wife, SOLD: December 2015, $130 million* Lindsey, when they purchased the building’s * Value based on sale of share penthouse for $7.7 million. Nine months later, TOBY MOSKOVITS AND PARTNERS bought the block-size development site in Williamsburg, envisioning a they sold it for $11.5 million. 400,000-square foot-office building, then sold a share two years later to Philadelphia-based real estate firm Location and timing are also key to these Rubenstein Partners in a transaction that valued the property at about $130 million. Brooklyn’s exploding flips’ success. Walker Tower, Verizon’s former office market powered the increase, as did Moskovits’ efforts to tweak the site’s zoning. Moskovits applied Art Deco building along West 18th Street in for a special permit from the city that spared her from having to include community space such as doctors’ Chelsea, is one of a number of projects, includ- offices or classrooms in order to build the office space to its maximum. In exchange, Moskovits is offering ing One Madison and 150 Charles, where sever- to dedicate a portion of the building for light manufacturing, a potentially more lucrative use. The proposal al flips have transpired. was backed by Williamsburg Councilman Stephen Levin, and in January, the Department of City Planning In this case, JDS Development Group certified the special-permit request, setting in motion a public-review process. launched the Walker Tower project in 2012, Rubenstein’s investment shows the firm’s confidence that Moskovits will secure approval. which was so early in the condo boom that its units were precious commodities. Some of the 138 GREENE ST. apartments there increased in value so rapidly BOUGHT: July 2014, $16 million because of high demand that early buyers who SOLD: January 2016, $38.5 million were planning to live in the units were enticed JOSEPH SITT, THE CHIEF EXECUTIVE of Thor Equities, has a reputation for buying prop- to flip instead. erties in the hope of flipping them for big profits without having to do any leasing or The Kaswells inked their contract before the renovations. Last month, he more than doubled his money by selling a 5,500-square- attorney general’s office fully signed off on the foot SoHo retail co-op occupied by Italian furniture store B&B Italia. Rents have project’s plans. By the time they closed and soared to as high as $1,000 per square foot in prime areas of SoHo. Though not the began prepping their move in 2014, their needs most heavily trafficked stretch in the area, Greene Street has become more coveted had changed, and they discussed the unit’s new by tenants in the past few years. value with residential brokerage Core. “Eyebrows were raised,” said the Core agent, Christian Rogers. The couple made $3.77 million. years for Crain’s. “But the market might not be a year and is subject to short-term capital-gains Uncertain future able to support two, three or four price increas- taxes. But by April 2015, average gains had fall- The biggest flips typically happen at the out- es—meaning the initial investor won’t get the en below 20%, and Miller doesn’t think they set of a boom, when prices increase rapidly, same instant equity.” will rise above that mark any time soon. noted Donna Olshan, head of brokerage and Miller’s data show that in the past two years, That doesn’t necessarily mean that buying consulting firm Olshan Realty. “I don’t think about 240 apartments were sold in Manhattan early in new condo developments has become a you can count on this as the model now,” said that had been purchased only a year before. bad investment, Compass’ Steinberg said. It just Olshan. Many real estate experts believe that These units cost between $1 million and $2 mil- means that it won’t be a quick one. the high-end condo market is being saturated lion; the median price for a Manhattan home in “Markets don’t go up indefinitely, but in big with units, which is leading to longer sale times the fourth quarter of 2015 was $1 million. cities like London and New York, they recover and smaller price gains. Flippers averaged at least a 20% profit. That is very quickly,” he said. “If you have the ability “Developers will probably still prime the easily enough to cover broker fees and taxes to ride out a correction and can rely on renting pump,” said Miller, whose firm analyzed that typically make up 10% of an apartment’s the unit out, you will more than likely make Manhattan apartment flips over the past two price or more, if an apartment is flipped within money.” Ⅲ

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SMALL BUSINESS | GUNS GUNS AND MONEY The harder it is to buy a pistol, the more New Yorkers want to get one BY AARON ELSTEIN

DARREN LEUNG is New York City’s largest legal gun dealer. Gun permits in the city are up nearly 10% since the Newtown massacre.

arren Leung would rather his neighbors in Queens didn’t know what he does for a living. “I tell them I work for the Sanitation Department,” he said. “I don’t want somebody knocking on my door in the middle of the night saying, ‘You gotta help me.’ ” Leung prefers to keep a low profile because he is, by his own account, New York City’s largest gun dealer. Last year, he sold 400 guns to licensed buyers from his shop at Westside Rifle & Pistol Range, in the basement of a Flatiron district building. DThat may not be a lot of guns, but Leung doesn’t have a lot of competitors. Westside is one of only 21 licensed firearms dealers in this city of 8.4 million, according to the New York Police Department, and his is one of only two shops in Manhattan that deals legally in handguns. In addition to selling guns, Leung provides space for about 2,000 members, who pay

BUCK ENNIS from $275 to $575 a year to learn how to shoot or refine their skills. James Southerton, an

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ONE UNINTENDED SIDE EFFECT OFTOUGHER GUN CONTROL LAWS: 70% OF GUNS USED IN CRIMES ARE FROM OUT OF STATE, THE MOST SINCE 2007

off-duty police officer who met Leung at the shop and served as best man at his wedding, teaches private security guards to shoot. John Aaron, whose arms and neck are covered in tat- MAYLEEN SEATON, a training toos, greets visitors from behind a reception consultant at Westside, gets locked and loaded. desk that bears a sign warning customers not to leave firearms unattended for any reason. “No Exceptions,” it says. After the first uptick in five years in the city’s homicide rate, the de Blasio administration last month created a special court for gun crime, and Police Commissioner Bill Bratton formed a squad dedicated to getting guns off the street. The crackdown has Leung bracing for another jump in sales and membership. Leung said that every time President Barack Obama talks about restricting gun ownership, more customers come to Westside. After the 2012 school shooting in Newtown, Conn., Leung said, worried gun owners bought so many bullets at his shop and others across the country that for a while shotgun enthusiasts couldn’t find long- range ammunition at any price. “The best salesman is the federal government,” said Leung, 50, who has run Westside for 21 years. “Business is up, but I can’t give a number.” Permits rise FBI and police data offer a hint. They show that legal gun sales in New York state have jumped by more than 40% during the past five years, and in the city gun permits have increased by nearly 10%, to 62,569, according to the NYPD. In response to the 2012 Newtown massacre, the New York state legislature passed the SAFE Act, a law that banned semiautomatic assault- style weapons and large magazines, increased background checks and stiffened penalties for gun-related crimes. A federal judge struck down a part of the law that made it illegal for individuals to load more than seven rounds of ammunition into a magazine capable of holding 10 rounds, but otherwise the act has withstood court challenges. Leung said the law hasn’t affected business much, though clearly it’s not popular with members of Westside, where a sign says the statute “creates a SAFE work environment for criminals.” One unintended side effect of tougher gun laws in New York is that more firearms are flowing in from states where they’re easier to buy. In 2014, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives determined that 70% of all guns used for criminal purposes in New York came from outside the state, the highest level since 2007. Virginia and Georgia supplied the most. Cases against accused traffickers illustrate how the city’s underground gun economy works. For instance, in August 2013, authorities seized more than 200 illegal firearms purchased in North and South Carolina and sold for about $160,000 over a nine-month period through a broker in Brooklyn. That’s three times what the weapons cost in the Carolinas. One popular marketplace was a recording studio in Ocean

BUCK ENNIS CONTINUED ON PAGE 16

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SMALL BUSINESS | GUNS

Hill, Brooklyn. Another group of dealers was accused of selling $130,000 worth of illegal assault weapons and other firearms in a Walgreens parking lot in Canarsie during a 12-month stretch that ended last October. The guns were originally purchased in Atlanta and Pittsburgh. “I’m selling them the right way and the wrong way,” the ringleader said in an intercepted phone conver- sation. “When I’m out of state, like in Atlanta and Georgia and all that, it’s all legal, but New York, it’s completely illegal.” Last fall, Manhattan District Attorney Cyrus Vance said that more than 3,000 guns have been recovered in the borough since 2010, and his office has filed 21 gun-related indictments against 64 people in the same period. At a press conference to highlight his latest bust, Vance said there is an “Iron Pipeline pumping handguns, AK-47s and other military-style assault weapons into our cities and communities.” The city has hired researchers from Rutgers University to get a handle on the size of New York’s black market for guns. Rifles vs. Glocks Leung says only a few hundred thousand dollars’ worth of guns are sold every year at his shop. The only other place in Manhattan where the public can legally buy handguns is the John Jovino Gun Shop on the Lower East Side, where Leung grew up. His old neighborhood once had JOHN AARON, who greets visitors at many firearm retailers, but they closed as the Westside, said an evening of “beef and city gentrified and because of what Leung calls bullets” is popular for bachelor—and the city’s hostile regulatory climate for gun- bachelorette—parties. shop owners. “Stores like ours are not the problem, nor are our customers,” he said. Many remaining Manhattan gun shops are high-end boutiques. On the Upper East Side’s Madison Avenue, gunmaker Beretta offers what body,” he said. Southerton, the instructor, attached a paper it calls a gallery of guns behind a façade of This kind of practical advice, along with a target to a laundry line and turned a crank to hand-chiseled Italian stone. After passing a welcoming atmosphere that starts with free send it out five feet. “Yeah, this is really old,” security guard, visitors climb two flights of coffee and doughnuts at the counter, have he said. stairs, past racks of tweed vests and such books made Westside the clubhouse for the city’s gun The range may not be state of the art, but as Hunting Across the Danube, before reaching aficionados. Westside’s convenient location has made it the gunroom on the third floor. On some nights, Leung turns over his space popular, especially among women. Leung said At the East 40th Street outpost of Holland & so members of the National Rifle Association they account for nearly half his customers—a Holland, a British firm whose clients include and New York State Rifle & Pistol Association figure that he said has risen in recent years. Prince Charles, offers “bespoke gunmaking” to can hold dinners. Westside has eight instructors As Southerton took target practice, a middle- aged woman a few stalls down readied a handgun with two hands, then fired away as Aaron gave her TO OWN A HANDGUN, PAYTHE tips on how to aim. NYPD $340 PLUS $89.75 Bachelorettes, too Just then, a man walked in off FOR FINGERPRINTS,THEN the street to inquire about learning WAIT FIVE MONTHS.TO SHOOT to fire a handgun. Aaron, who keeps a gun strapped under each A RIFLE? SIGN UP FOR ‘BEEF shoulder, sighed when the man AND BULLETS’ said he had no license. Applying for one through the Police Department costs $340, plus $89.75 for fingerprints, and approval routinely takes five commoners with enough dough. who teach gun safety from a side room in which months. “Welcome to New York,” Aaron said “Those places are about selling a $20,000 a “Don’t Tread on Me” flag hangs. The class- before adding: “You can use a rifle, though.” rifle,” said Leung. “We’re about the $500 room used to be where people practiced hitting For those who can’t wait to fire a gun, or are Glock.” targets using Magnums and semiautomatic merely curious about trying, Westside offers a $75 Asked which bullet is most sensible for New rifles until customers complained that the package that includes a rifle (no permit required), York gun owners to buy, he recommended a high-caliber weapons were too noisy. The targets and a 50-round box of ammunition. Aaron hollow-point. Although an international treaty range today offers 14 firing lines featuring stalls said clients, mostly men, often retire to a nearby has prohibited most armies from using this kind backed with black tarps covering steel that’s steakhouse after taking advantage of the promo- of ammunition for more than 100 years, it’s angled to deflect errant bullets. tion. “I call it beef and bullets,” he said. “It’s pop- available to most U.S. civilians, and Leung said Westside has occupied its West 20th ular with bachelor parties.” it’s less likely to travel through a wall and enter Street space since 1964 and looks its age. After “The bachelorettes like it, too,” Southerton Ⅲ BUCK ENNIS a neighbor’s apartment. “It will stop in the loading a .38 revolver with six bullets, said.

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Name of Foreign LLC: Pennypacker Labs NOTICE OF FORMATION OF REBY ADVISORS Notice of Qualification of Centerbridge WORD LLC. Authority filed with NY Dept. of State: LLC. Application for Authority filed with Special Credit Partners General Partner WARRIOR 10/23/13. Office loc.: NY Co. LLC formed in DE: the Secretary of State of New York (SSNY) III, L.P. Authority filed with NY Dept. of 8/30/13. NY Sec. of State designated agent on 09/25/2015. Office location: NEW State on 1/11/16. Office location: NY The Last Word LLC of LLC upon whom process against it may be YORK County. LLC formed in CT on County. LP formed in DE on 1/5/16. NY Communication & served and shall mail process to: c/o Business 05/06/2011. SSNY has been desig- Sec. of State designated agent of LP Creative Services Filings Inc., 187 Wolf Rd., Ste. 101, Albany, NY upon whom process against it may be 646.434.6738 z 734.237.6614 nated as an agent upon whom process lastword.com Carol Dunitz, Ph.D. 12205. 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Notice of Qualification of 825 EAST 141ST Notice of Qualification of D. E. Shaw Alkali Formation of 371 Harlem LLC filed with Notice of Formation of GOV BALL 2016, STREET INVESTORS III, LLC Appl. for Auth. Portfolios Alternate III, L.L.C. Authority filed the Secy. of State of New York (SSNY) LLC. Arts. of Org. filed with NY Dept. of filed with Secy. of State of NY (SSNY) with NY Dept. of State on 5/12/15. Office on 12/8/15. Office loc.: New York County. State on 11/17/15. Office location: NY on 12/17/15. Office location: NY location: NY County. LLC formed in DE on SSNY designated as agent of LLC upon County. Sec. of State designated agent County. LLC formed in Delaware (DE) on 3/3/15. NY Sec. of State designated whom process against it may be served. of LLC upon whom process against it 10/29/15. Princ. office of LLC: 430 Park agent of LLC upon whom process against The principal business loc. and address may be served and shall mail process to: Ave., 12th Fl., NY, NY 10022. SSNY it may be served and shall mail process to SSNY shall mail process to is Jason Founders Entertainment, 86 E. 10th St., designated as agent of LLC upon whom the principal business addr.: D. E. Shaw & Hoppy, 195 Hudson St., Apt. 5B, New York, Suite 1, NY, NY 10003, principal business process against it may be served. SSNY Co., L.P., 1166 Ave. of the Americas, 9th NY 10013. Purpose: Any lawful activity. address. Purpose: any lawful activity. shall mail process to c/o Corporation Fl., NY, NY 10036, Attn: John Liftin, Service Co. (CSC), 80 State St., Albany, NY General Counsel, regd. agent upon whom 12207-2543, regd. agent upon whom process may be served. DE addr. of LLC: and at which process may be served. DE The Corporation Trust Co., 1209 Orange St., Notice of Formation of FIZZLE TOV LLC. Notice of Qual. of Crow Hill Fund, LP, addr. of LLC: c/o CSC, 2711 Centerville Wilmington, DE 19801. Cert. of Form. filed Arts of Org filed with Secy of State of NY Auth. filed Sec’y of State (SSNY) 4/27/15. Rd., Ste. 400, Wilmington, DE 19808. Cert. with DE Sec. of State, 401 Federal St., Dover, (SSNY) on 07/31/2015. Office location: NY Off. loc: NY Co. LP org. in DE 4/24/15. SSNY of Form. filed with DE Secy. of State, DE 19901. Purpose: all lawful purposes. County. SSNY designated agent upon desig. as agent of LP upon whom proc. Div. of Corps., John B. Townsend Bldg., whom process may be served and shall against it may be served. SSNY shall mail 401 Federal St., Ste. 4, Dover, DE mail copy of process against LLC to copy of proc. to 256 W. 116th St., 2nd Fl., 19901. Purpose: Any lawful activity. principal business address: 308 Lenox NY, NY 10026. DE off. addr.: CSC, 2711 Notice of Qualification of Midfield US LLC. Avenue, Suite B, New York, NY 10027. Centerville Rd., Wilmington, DE 19808. Cert. Authority filed with NY Dept. of State on Purpose: any lawful act. of LP on file: SSDE, Townsend Bldg., Dover, 12/28/15. Office location: NY County. DE 19901. Name/addr. of each gen. ptr. Notice of Formation of Favelukes Princ. bus. addr.: 1790 Broadway, 8th Fl., avail. at SSNY. Purp: any lawful activities. Consulting LLC. Arts of Org filed with Secy. NY, NY 10019. LLC formed in DE on of State of NY (SSNY) on 10/5/2015. 11/21/14. NY Sec. of State designated Notice of Formation of Atrium Managed Office location: NY County. SSNY desig- agent of LLC upon whom process against Services LLC. Arts. of Org. filed with Secy. it may be served and shall mail process Notice of the formation of Cara nated agent upon whom process may of State of NY (SSNY) on 11/27/15. Dussich, LLC. Arts of Org filed with be served and shall mail copy of to: c/o CT Corporation System, 111 8th Office location: NY County. SSNY desig- Ave., NY, NY 10011, regd. agent upon Secy. of State of NY (SSNY) on process against LLC to principal busi- nated as agent of LLC upon whom 10/1/2015. Office location: NY ness address: 302 W. 86th St. #3C NY, whom process may be served. DE addr. of process against it may be served. SSNY LLC: c/o The Corporation Trust Co., 1209 County. SSNY designated agent upon NY 10024. Purpose: any lawful act. shall mail process to: 71 5th Avenue, 3rd Fl., whom process may be served against Orange St., Wilmington, DE 19801. Cert. NY, NY 10003. Purpose: any lawful activity. of Form. filed with DE Sec. of State, 401 LLC to: 7014 13th Ave #202 Brooklyn, Federal St., Dover, DE 19901. Purpose: all NY 11228. Principal business address: 210 E 73 St. #4A NY, NY 10021. NOTICE OF FORMATION of FINI PRO- lawful purposes. DUCTIONS, LLC. Arts. of Org. filed w/Secy Notice of Formation of Buckner of State of NY (SSNY) on 11/20/15. Company of Colorado, LLC. Arts of Org Office location: NY County. SSNY desig- filed with Secy. of State of NY (SSNY) on Notice of Formation of COLONIAL CON- nated as agent for service of process. Name of LLC: davi3 llc. Arts. of Org. filed 12/11/2015. Office location: NY County. SULTANTS, LLC Arts. of Org. filed with SSNY shall mail process to 678 St. with NY Dept. of State: 12/24/15. Office SSNY designated agent upon whom Secy. of State of NY (SSNY) on Nicholas Avenue #54 NY, NY 10030. loc.: NY Co. Sec. of State designated agent process may be served and shall mail 01/05/16. Office location: NY County. Purpose: Any lawful activity. of LLC upon whom process against it may copy of process against LLC to: 6550 S SSNY designated as agent of LLC upon be served and shall mail process to: Millrock Drive STE300, Salt Lake City, UT whom process against it may be served. Business Filings Inc., 187 Wolf Rd., Ste. 84121. Purpose: any lawful act. SSNY shall mail process to Stephen J. 101, Albany, NY 12205, regd. agt. upon Sheinbaum, 460 Park Ave. South, 10th Fl., Notice of Qualification of 1825 PARK whom process may be served. Purpose: NY, NY 10016. Purpose: Any lawful activity. AVENUE PROPERTY INVESTORS III, any lawful act. LLC Appl. for Auth. filed with Secy. Notice of Qual. of Coatue CT VII LLC, Auth. filed Sec’y of State (SSNY) of State of NY (SSNY) on 12/17/15. Notice of Formation of S.H.E. 959 ONE 3/13/15. Off. loc: NY Co. LLC org. in DE Office location: NY County. LLC LLC. Arts. of Org. filed with Secy. of State Notice of Formation of Magnetic Midnight 3/11/15. SSNY desig. as agent of LLC formed in Delaware (DE) on 10/06/15. of NY (SSNY) on 1/13/16. Office location: LLC. Arts. of Org. filed with NY Dept. of upon whom proc. against it may be served. Princ. office of LLC: 430 Park Ave., NY County. SSNY designated as agent of State on 12/3/15. Office location: NY SSNY shall mail copy of proc. to Att: 12th Fl., NY, NY 10022. SSNY desig- LLC upon whom process against it may County. Sec. of State designated agent of Philippe Laffont, 9 W. 57th St., NY, NY nated as agent of LLC upon whom be served. SSNY shall mail process to: LLC upon whom process against it may be 10019. DE off. addr.: CSC, 2711 process against it may be served. Ivan Moskowitz, Esq., Schiff Hardin LLP, served and shall mail process to: Becker, Centerville Rd., Wilmington, DE 19808. Cert. SSNY shall mail process to Corporation 666 Fifth Avenue, Ste. 1700, NY, NY Glynn, Muffly, Chassin & Hosinski LLP, c/o of Form. on file: SSDE, Townsend Bldg., Service Co. (CSC), 80 State St., Albany, 10103. Purpose: any lawful activity. NY 12207-2543, regd. agent upon Karin P.E. Gustafson, 299 Park Ave., NY, Dover, DE 19901. Purp: any lawful activities. whom and at which process may be NY 10171. Purpose: any lawful activity. served. DE addr. of LLC: c/o CSC, 2711 Centerville Rd., Ste. 400, Notice of formation of SEGELOV PHYSI- Wilmington, DE 19808. Cert. of Form. Notice of Formation of Mighty Industries CAL THERAPY, PLLC. Art. of Org filed w/ filed with DE Secy. of State, Div. of LLC. Arts. of Org. filed with Secy. of State secy of state of NY (SSNY) on Name of Foreign LLC: Remy/Newman Corps., John B. Townsend Bldg., of NY (SSNY) on 12/10/15. Office loca- 12/07/15. Office location: NY County. Realty Services, LLC. Authority filed 401 Federal St., Ste. 4, Dover, DE tion: NY County. SSNY designated as SSNY designated as agent for services with NY Dept. of State: 12/23/15. 19901. Purpose: Any lawful activity. agent of LLC upon whom process against of process. SSNY shall mail process to Office location: NY County. LLC formed it may be served. SSNY shall mail 80 State Street, Albany NY, 12207. in CT: 3/8/05. NY Sec. of State desig- process to: 15 W. 63rd St., Apt. 26A, NY, Purpose: Any lawful activity. nated agent of LLC upon whom NY 10023. Purpose: any lawful activity. Notice of Formation of MALCOLM 308 process against it may be served and LLC . Arts of Org filed with Secy of shall mail process to: c/o Executive State of NY (SSNY) on 09/28/2015. Management Offices, 545 Main St., Notice of Formation of Pez Loco NY, NY 10044. CT addr. of LLC 138 Office location : NY County. SSNY des- Notice of Formation of KOBE 66 LLC Partners LLC, Art. of Org. filed with Goodhill Rd., Weston, CT 06883. Cert. ignated agent upon whom process may be Arts. of Org. filed with Secy. of State of Sec’y of State (SSNY) on 5/29/15. of Form. filed with CT Sec. of State, 30 served and shall mail copy of process NY (SSNY) on 01/07/16. Office location: Office location: NY County. SSNY Trinity St., Hartford, CT 06115. against LLC to principal business NY County. SSNY designated as agent of designated as agent of LLC upon whom Purpose: all lawful purposes. address: 308 Lenox Avenue, New LLC upon whom process against it may process against it may be served. York, NY 10027. Purpose:any lawful act. be served. SSNY shall mail process to SSNY shall mail copy of process to Oren Tepper, 203 E. 72nd St., Apt. 8A, NY, Seward & Kissel, Att: Hume Steyer, NY 10021. Purpose: Any lawful activity. One Battery Park Plaza, NY, NY 10004. Purpose: any lawful activities. Notice of Qualification of Magma Finco 13, Notice of Qualification of Calamos Wealth LLC. Authority filed with NY Dept. of State Management LLC. Authority filed with on 11/2/15. Office location: NY County. Secy. of State of NY (SSNY) on Princ. bus. addr.: 345 Park Ave., NY, NY 12/3/15. Office location: NY County. LLC Notice of Qual. of Coatue CT VIII LLC, Notice of Qual. of Crow Hill Fund GP, LLC, 10154. LLC formed in DE on 10/20/15. formed in DE on 2/26/27. SSNY desig- Auth. filed Sec’y of State (SSNY) 4/8/15. Auth. filed Sec’y of State (SSNY) 4/27/15. NY Sec. of State designated agent of LLC nated agent upon whom process may Off. loc: NY Co. LLC org. in DE 4/6/15. Off. loc: NY Co. LLC org. in DE 4/24/15. upon whom process against it may be be served and shall mail copy of process SSNY desig. as agent of LLC upon whom SSNY desig. as agent of LLC upon whom served and shall mail process to: CT against LLC to: CT Corp. System, 111 proc. against it may be served. SSNY proc. against it may be served. SSNY shall Corporation System, 111 8th Ave., NY, NY Eighth Ave., New York, NY 10011. shall mail copy of proc. to Att: Philippe mail copy of proc. to Att: Alex Friedman, 10011. DE addr. of LLC: 1209 Orange Principal business address: 2020 Laffont, 9 W. 57th St., NY, NY 10019. DE 256 W. 116th St., NY, NY 10026. DE St., Wilmington, DE 19801. Cert. of Calamos Ct., Naperville, IL 60563. off. addr.: CSC, 2711 Centerville Rd., off. addr.: CSC, 2711 Centerville Rd., Form. filed with DE Sec. of State, 401 Certificate of LLC filed with Secy. of State of Wilmington, DE 19808. Cert. of Form. on Wilmington, DE 19808. Cert. of Form. Federal St., Dover, DE 19901. Purpose: DE located at: 401 Federal St., Ste. 4, file: SSDE, Townsend Bldg., Dover, DE on file: SSDE, Townsend Bldg., Dover, all lawful purposes. Dover, DE 19901. Purpose: any lawful act. 19901. Purp: any lawful activities. DE 19901. Purp: any lawful activities.

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Notice of Qualification of Magnet 360, Notice of Qualification of GOKUL WORK- Notice of Qualification of LFD Malone NY Notice of Qualification of BAMTech, LLC. Authority filed with NY Dept. of SHOPS LLC Appl. for Auth. filed with Secy. LLC. Authority filed with NY Dept. of State LLC Appl. for Auth. filed with Secy. of State on 1/7/16. Office location: NY of State of NY (SSNY) on 01/07/16. Office on 12/16/15. Office location: NY County. State of NY (SSNY) on 01/07/16. County. LLC registered in MN on location: NY County. LLC formed in LLC formed in DE on 12/11/15. NY Sec. Office location: NY County. LLC formed in 3/25/08. NY Sec. of State designated Delaware (DE) on 01/05/16. SSNY des- of State designated agent of LLC upon Delaware (DE) on 10/19/15. Princ. office agent of LLC upon whom process ignated as agent of LLC upon whom whom process against it may be served of LLC: 75 Ninth Ave., NY, NY 10011. against it may be served and shall mail process against it may be served. SSNY shall and shall mail process to: c/o Ladder SSNY designated as agent of LLC upon process to: c/o National Registered mail process to c/o Corporation Service Capital, 345 Park Ave., 8th Fl., NY, NY whom process against it may be served. Agents, Inc., 111 8th Ave., NY, NY Co., 80 State St., Albany, NY 12207-2543. 10154, principal business address. DE SSNY shall mail process to c/o 10011, regd. agent upon whom DE addr. of LLC: c/o PHS Corporate address of LLC: 1209 Orange St., Corporation Service Co., 80 State St., process may be served. MN and princi- Services, 1313 Market St., Ste. 5100, Wilmington, DE 19801. Cert. of Form. Albany, NY 12207-2543. DE addr. of LLC: pal business address: 5757 Wayzata Wilmington, DE 19801. Cert. of Form. filed filed with DE Sec. of State, 401 Federal 2711 Centerville Rd., Ste. 400, Blvd., Minneapolis, MN 55416. Cert. of with DE Secy. of State, John G. Townsend St., Dover, DE 19901. Purpose: all lawful Wilmington, DE 19808. Cert. of Form. filed Reg. filed with MN Sec. of State, 60 Bldg., 401 Federal St., Ste. 4, Dover, DE purposes. with Secy. of State, State of DE, 401 Empire Dr., St. Paul, MN 55103. 19901. Purpose: Any lawful activity. Federal St., Ste. 3, Dover, DE 19901. Purpose: all lawful purposes. Purpose: Any lawful activity. Notice of Formation of 505 GREENWICH STREET 3GH, LLC Arts. of Org. filed with MH LAM, LLC. Arts. of Organization filed Notice of Qualification of Centerbridge Secy. of State of NY (SSNY) on 01/08/16. with Secy. of State of NY (SSNY) on Special Credit Partners III-Flex, L.P. Office location: NY County. Princ. office Notice of Qualification of D. E. Shaw Alkali 12/24/15. Off. loc.: New York Co. SSNY Authority filed with NY Dept. of State on of LLC: 505 Greenwich St., Unit #3GH, Holdings Alternate III, L.L.C. Authority filed des. as agent of LLC upon whom 1/8/16. Office location: NY County. LP NY, NY 10013. SSNY designated as with NY Dept. of State on 5/12/15. Office process may be served. SSNY shall mail formed in DE on 1/5/16. NY Sec. of agent of LLC upon whom process location: NY County. LLC formed in DE on process to the LLC, Attn: Beth Thornton, State designated agent of LP upon against it may be served. SSNY shall 3/2/15. NY Sec. of State designated 481 Washington St., #1N, New York, NY whom process against it may be served mail process to the LLC at the addr. of its agent of LLC upon whom process against 10013. Purpose: General. and shall mail process to the principal princ. office. Purpose: Any lawful activity. business addr.: 375 Park Ave., 12th Fl., it may be served and shall mail process to NY, NY 10152. Regd. agent upon whom the principal business addr.: D. E. Shaw & process may be served: CT Corporation Co., L.P., 1166 Ave. of the Americas, 9th Notice of Formation of ALLYOGA LLC. Fl., NY, NY 10036, Attn: John Liftin, General Arts. of Org. filed with Secy. of State of NY System, 111 8th Ave., NY, NY 10011. DE MASDAC, LLC, Art. Of Org. Filed Sec. of State addr. of LP: c/o The Corporation Trust of NY 1/26/2016. Off. Loc.: Richmond Co. Counsel, regd. agent upon whom process (SSNY) on 03/04/08. Office location: NY may be served. DE addr. of LLC: The County. SSNY designated as agent of LLC Co., 1209 Orange St., Wilmington, DE SSNY designated as agent upon whom 19801. Name/addr. of genl. ptr. available process against it may be served. SSNY to Corporation Trust Co., 1209 Orange St., upon whom process against it may be Wilmington, DE 19801. Cert. of Form. filed served. SSNY shall mail process to: The from NY Sec. of State. Cert. of LP filed mail copy of process to The LLC, c/o Alain with DE Sec. of State, Duke & York St., Dover, W. Holtz, 1135 Pheasant Lane, Collegeville, with DE Sec. of State, 401 Federal St., Dover, LLC, 252 West 76th Street, Suite 7B, New DE 19901. Purpose: all lawful purposes. York, NY 10023. Purpose: any lawful activity. DE 19901. Purpose: all lawful purposes. PA 19426 Purpose: Any lawful act or activity.

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GOTHAM GIGS

RING IN THE NEW: Lauren Kaminsky is expanding EZ Pawn’s business by giving it a more upscale image.

Queen of the pawns Pawnshop scion Lauren Kaminsky aims to change the industry’s image from shoddy to chic

auren Kaminsky grew up in a family of past five years, Kaminsky has overseen the expansion pawnbrokers: Her grandfather hocked of EZ Pawn’s citywide locations from five. The stores LAUREN KAMINSKY watches, and seemingly every dinner-table are located in Manhattan, Brooklyn and Queens, with discussion was about the price of gold. Yet a per-store average of about 300 customers per day. AGE: 27 Lwhen Kaminsky graduated from college in 2010, it “People don’t think of pawnshops having beautiful BORN: Roslyn, L.I. took some convincing by her father, David, the CEO of jewelry and unique pieces, but it’s a perfect place to EZ Pawn Corp., to join his business. look for a gift,” said Kaminsky, showing RESIDES: Flatiron district Now, as president, she’s turning their A pawnshop off a 3-carat sapphire engagement ring for EDUCATION: Boston University, 14 New York City pawnshops from shab- $7,000, half of what she said its retail price B.S., business administration by to chic. Her dad would melt down the is “a perfect would be. NICKNAME: “Gold Girl” gold jewelry that was forfeited when place to look Still, she finds herself battling outdated clients didn’t repay their loans, but for a gift” perceptions of pawnshops. In 2010, she FAVORITE POSSESSION: When Kaminsky now resells these pieces. helped launch a long-running campaign shopping with her future husband for About five years ago, Long Island City- that cost about $30,000 a month, plaster- her engagement ring, Kaminsky fell based EZ Pawn joined forces with the hip restaurant ing subways with Roy Lichtenstein-type ads portray- in love with a vintage diamond ring at Beauty & Essex, a Lower East Side hot spot that pairs a ing pawnshops as trendy. Fred Leighton, but the stone was too swanky eatery with a store specializing in vintage She speaks at community-board meetings about large for the couple to afford. So the wares stocked by Kaminsky. The two businesses are her business and how it can help people who jeweler found a smaller one and opening a branch in Los Angeles this spring and plan wouldn’t qualify for bank loans when they hit a cash made an exact replica of the ring—in to hit Las Vegas next year. Kaminsky would not say crunch. EZ Pawn charges 4% interest per month on gold, of course. how much revenue the partnership generates. its loans, which is 60% annually, about three times Jewelry sales now account for some 30% of EZ the typical interest rate on credit cards. Pawn’s business, said Kaminsky, with the total num- “I made it my mission to be present in New York ber of items sold in its shops up 23% in December, City, letting people know we’re not what you think

BUCK ENNIS compared with the same month a year earlier. In the we are,” Kaminsky said. — MIRIAM KREININ SOUCCAR

20 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 1, 2016 20160201-NEWS--0021-NAT-CCI-CN_-- 1/29/2016 2:56 PM Page 1

SNAPS

Execs come to the table for Big Brothers Big Sisters event at GCT It isn’t something commuters see every day in Grand Central Terminal: representatives from hedge funds and financial institutions playing table tennis. But on Jan. 14, Big Brothers Big Sisters of New York City hosted its eighth annual tournament at the station. The event raised more than $100,000 to support BBBS’ mentoring programs, which serve about 5,000 young people in the city. Birds of a feather flock to gala

Hector Batista, CEO of Big Brothers Big Sisters of New York City; Kunal Joshi and Amol Bhatt, director and senior manager, respectively, of risk and information management at American Pete McCloskey Jr., an Audubon honoree who is a Express; and Robert Frome, senior partner at principal at Cotchett Pitre & McCarthy, Hong Webb Olshan Frome Wolosky, at the BBBS event. and her husband, former Virginia Sen. Jim Webb, at the National Audubon Society’s Jan. 21 gala at Cipriani 42nd Street. Black Agency Executives hosts MLK Day luncheon

David Ushery,WNBC-TV anchor, Danielle Moss- Lee, president of Black Agency Executives, Carole Owens, event honoree and talent coordinator at NBCUniversal, Carla Brown, executive director of the Charles A. Walburg Multi-Service Organization, and Maria Willis, consultant and chair for the Black Agency Executives’ Martin Luther King Day luncheon on Jan. 19 at the New York Hilton Midtown.

Khalil Gibran Muhammad, director of the Schomburg Center for Research in Black Culture, Gale Brewer, Manhattan borough president, Athena Moore, director of the borough president’s Northern Paul Tudor Jones, event Manhattan Office, Colvin honoree and controlling Grannum, CEO of Bedford principal of the Tudor Stuyvesant Restoration, and Investment Group, and Louis Jennifer Jones Austin, CEO of the Bacon, founder of Moore Federation of Protestant Welfare Capital Management, at the Agencies, at the lunch, which Audubon fete, which raised raised $133,000 for the organiza- more than $1 million. tion of African-American human- resource executives.

SEE MORE OF THIS WEEK’S SNAPS ONLINE AT CRAINSNEWYORK.COM/SNAPS

TOP: FRANKTOP: PHOTOGRAPHY, TOP ROCCO PATRICK MCMULLAN, RIGHT: MARGOT LEFT: BOTTOM L. JORDAN GET YOUR GALA IN SNAPS. EMAIL THERESA AGOVINO, [email protected]

FEBRUARY 1, 2016 | CRAIN’S NEW YORK BUSINESS | 21 20160201-NEWS--0022-NAT-CCI-CN_-- 1/29/2016 2:57 PM Page 1

FOR THE RECORD*

in Carroll Gardens. Its sec- The Fhitting Room owed $5,277.39; and Benny and Construction year lease for 17,900 NEW IN TOWN ond city shop offers pre- 31 W. 19th St. Chow, owed $4,000. Seeks competitive sealed square feet at 10 E. 53rd scription and nonprescrip- The gym opened in the bids by 11 a.m. on Feb. 24 St. The tenant was repre- Objectify 139 tion lenses for glasses and Flatiron district. Its second Danbury Sports for the construction of sented by Mark Mandell of 139 Essex St. sunglasses with bold city location offers its sig- 39 Fields Lane, North combined sewers and Cushman & Wakefield. The book boutique opened frames in fun shapes. nature high-intensity Salem, N.Y. appurtenances at York The landlord, SL Greene on the Lower East Side. It interval training workouts Filed for Chapter 11 bank- Avenue between East 61st Realty Corp., was repre- offers affordably priced August and has two classrooms, ruptcy on Jan. 22. The filing and East 63rd streets in sented by JLL’s Benjamin collectible books and 791 Lexington Ave. monkey bars, battle ropes, cites estimated assets of Manhattan. Bid docu- Bass, Alexander Chudnoff, prints, as well as one-of-a- The French restaurant digital lockers and hair $50,001 to $100,000 and ments are available at Frank Doyle, Paul kind artists’ original gifts . opened on the Upper East and makeup stations. estimated liabilities of nyc.gov/buildnyc for a $35 Glickman, Mitti Side. The menu includes $1,000,001 to $10 million. deposit by company check Liebersohn and Cynthia Reed Krakoff roasted chicken with car- The creditors with the or money order. To make Wasserberger. The asking 93 Greene St. rots and mushrooms, BANKRUPTCIES largest unsecured claims inquiries, contact rent was not disclosed. The women’s clothing gnocchi in brown butter, are ARS Investors, owed $3 Emmanuel Charles at boutique opened in SoHo. cauliflower risotto with C2 Transportation Inc. million; Internal Revenue (718) 391-2200 or Marketfield Asset It offers ready-to-wear white chocolate and caviar, 136-20 38th Ave., Queens Service, owed $136,818.57; [email protected]. Management signed a 10- items, shoes and acces- and barrel-aged cocktails. Filed for Chapter 7 bank- and the State of Connect- year lease for 14,000 sories in an artistic envi- ruptcy on Jan. 22. The filing icut, owed $25,683.26. Housing Authority square feet at 60 E. 42nd ronment. Club Clio cites estimated assets of $0 Seeks competitive sealed St. The tenant was repre- 11 W. 14th St. to $50,000 and estimated bids by 11 a.m. on Feb. 19 sented by Robert The Korean beauty shop liabilities of $100,001 to GOVERNMENT for façade restoration and Frischman of EVO Real COMPANY MOVES opened in Greenwich $500,000. The creditors CONTRACT roofing replacement at Estate Group. The land- Village. The store, which with the largest unsecured OPPORTUNITIES Queensbridge South hous- lord, Empire State Realty Anne et Valentin has two other locations in claims are Garin Wong, ing development. Bid doc- Trust, was represented 200 Smith St., Brooklyn Flushing, offers a full cos- owed $19,746.50; the U.S. CONSTRUCTION SERVICES uments are available in-house by Ryan O. Kass The eyewear store opened metics lineup. Department of Treasury, Department of Design Monday through Friday, 9 and Fred C. Posniak. The a.m. to 4 p.m., for a $25 fee asking rent was in the in the form of a money mid-$70s per square foot. order or certified check payable to NYCHA. 6D Global Technologies Documents can be picked signed a five-year lease up at 90 Church St. To for nearly 9,000 square make inquiries, contact feet at 17 State St. The We congratulate our client Vaughn Banks at (212) 306- company expanded its 6727 or vaughn.banks@ existing lease, bringing its nycha.nyc.gov. total space to 13,400 square feet. The tenant GOODS AND SERVICES and the landlord, RFR Economic Development Realty, were represented Corp. in-house by RFR’s AJ Seeks requests for propos- Camhi, Steve Morrows als by 4 p.m. on Feb. 18 for and Ryan Silverman. The a consultant or consultant asking rent was $70 per team to conduct a feasibil- square foot. ity study for an integrated flood protection system RETAIL for Red Hook, Brooklyn. Sephora signed a lease on its recent sale of The RFP is available for in- for 11,300 square feet at person pickup between 112 W. 34th St. The 9:30 a.m. and 4:30 p.m., makeup company will Monday through Friday, at occupy space on the 110 William St., fourth ground floor. The tenant floor. To make inquiries, was represented by Crown contact Maryann Catalano Retail Services’ Virginia a leading technology-enabled provider at (212) 312-3969 or red Pittarelli. The landlord, [email protected]. Empire State Realty Trust, of institutional review board (IRB) services was represented by in the US and Canada Cushman & Wakefield’s REAL ESTATE DEALS Ian Lerner and Joanne Podell. The asking rent to COMMERCIAL was nearly $1,000 per Swarovski signed an 11- square foot.

GET YOUR NEWS ON THE RECORD *To submit company openings, moves or real estate deals, Linden Capital Partners or to receive further information, email [email protected]. For the Record is a weekly listing to help businesspeople in New York find opportunities, potential new clients and updates on customers. Bankruptcy filings from the Eastern and Southern districts of New York are listed alphabetically, as are recently announced New York City agency contract opportunities. Real estate listings are provided in order of square footage. Stock transactions at New York’s largest publicly held companies were filed with the Securities and Exchange Commission. Listings are in goulstonstorrs.com order of transaction value, and the information was obtained from Thomson Reuters.

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PHOTO FINISH

Brewed beer, borrowed time

hris Cuzme peered through a refrac- tometer at a small sample of beer to check its specific gravity, a measure that determines the eventual alcohol Clevel. Cuzme brews in a Crown Heights, Brooklyn, warehouse rented by Greenpoint Beer Works. Ultimately, though, he will sell his suds under the Cuzett Libations brand, which Cuzme launched with his wife, Mary Izett, in 2015 after establishing himself in the city’s home-brewing scene. Cuzme is one of the 19 (and counting) “gypsy” brewers who are helping to fuel a craft beer ren- aissance in a city that once had nearly 50 breweries in Bushwick alone. The high cost of building a brewery—upward of $1 million—compels companies like Cuzme’s to rent space to brew or contract with breweries to make their recipes. Even such buzzed-about makers as Brooklyn Brewery and Sixpoint contract out to larger manufacturers in Utica and Memphis instead of expanding in the city. Kenneth Hettinger, who brewed upstate and in New Jersey while looking for brewery space in Westchester, said the math doesn’t work in the city. “Finding affordable real estate this size is impossible,” Hettinger said. — PETER D’AMATO PETER D’AMATO

FEBRUARY 1, 2016 | CRAIN’S NEW YORK BUSINESS | 23