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INSIDE IF YOU DO JUST ONE THING, TOP STORIES GUV... Hey, Mitt: Michael Make it pension Gross tries to fire reform, says Carol his health insurer ® Kellermann PAGE 4 PAGE 14 Jones Group struggling VOL. XXVIII, NO. 3 WWW.CRAINSNEWYORK.COM JANUARY 16-22, 2012 PRICE: $3.00 to find the right fit PAGE 3 Tick, tick, Daily News to Post: tick for Drop dead. Tabloid war back on in NYC Bloomie’s PAGE 3 Why tech, media legacy crave Hudson Sq. PAGE 4 Mayor eyes schools, A juicy case of jobs in his final two insider trading years; other gains IN THE MARKETS, PAGE 6 are set in stone Arianna Huffington meets Al-Jazeera BY JEREMY SMERD NEW YORK, NEW YORK, P. 8 Ed Koch restored the city’s fiscal health. Rudy Giuliani curbed crime. What will Mayor Michael Bloomberg be remembered for? There is, of course, no single an- swer—at least not yet. For the mayor, that is good news. He still has two years to write his administration’s final chapters and deliver on goals that have eluded him. And he made clear in his State of the City address last week that A CLASS BY HIMSELF: he plans to stay focused on his major Joseph Ficalora has taken priorities:education and economic de- his NY Community Bancorp velopment. BUSINESS LIVES from total obscurity to one of the nation’s top 40. “We don’t walk away from things,” he told Crain’s. “If you don’t get some- GOTHAM GIGS See BLOOMBERG on Page 42 A real fixture on the P. 47

city’s bar scene larry ford ● ANNE FISHER How to sell local artwork to a global audience P. 47 Building ● MOVERS & SHAKERS Leading contractors to THE LOAN RANGER industry higher ground P. 48 ● GAEL GREENE Favorite restaurants of 2011 P. 54 Joe Ficalora is one of banking’s sharpest shake-up lenders. Too bad about those slumlords INDEX Related Cos. brings That figure is so out of step with the bank’s THE INSIDER ______10 BY AARON ELSTEIN peers—the industry median was $3.19—that it’s al- in outside contractor NEIGHBORHOOD JOURNAL ______18 most as if Mr. Ficalora is operating on a different for Hudson Yards SMALL BUSINESS ______20 To many,Joseph Ficalora is an exemplar of banking. planet. To top it off, since taking his bank public in

FOR THE RECORD ______22 In his 19 years at the helm of New York Commu- 1993, Mr. Ficalora has delivered an average gain for nity Bancorp, he has taken it from obscurity to be- shareholders of 18% a year,triple the industry norm. BY DANIEL MASSEY CLASSIFIEDS ______38 EXECUTIVE MOVES come one of the nation’s 40 largest banks, all the “Banking is at heart a simple business:You take de- ______47 while—in good times and bad—rarely making a dud posits, make loans and you don’t take big risks,” said Deeply dissatisfied with the two dozen WEEK ON THE WEB ______52 loan. Over the past five years, including those of the Thomas Kahn,president of Kahn Brothers Group,an agreements negotiated over the sum- CHEAT SHEET ______52 greatest financial collapse since the Depression, investment firm and longtime NYCB shareholder.“A mer between unions and contractors,

THE WEEK AHEAD ______54 NYCB has written off a mere 54 cents for every $100 lot of people forgot that. Joe never did.” and desperate to bring down the costs of loans, according to SNL Financial. See FICALORA on Page 40 of its massive Hudson Yards project, the Related Cos.has made a move cer- tain to shake the foundation of the REPORT REAL ESTATE city’s construction industry. The powerhouse developer last ELECTRONIC EDITION Graveyard shifts spur new life for city week brought construction giant Tutor neighborhoods. Top deals of 2011. Forecasts Perini Corp. in from California to be the contractor on its $4 billion,15-year for 2012. And more. PAGES 27-34 Hudson Yards undertaking,Crain’s has NEWSPAPER See RELATED on Page 42

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IN BRIEF It’s on! Tab war A THIRD OF CITY RETAIL WORKERS SUPPORT FAMILIES ON LESS THAN $10 AN HOUR, AND more than half have no health insurance or rely on government programs for it, according to a survey conducted by Retail Action Project, a nonprofit advocacy group and the City pits Colin vs. Col University of New York’s Murphy Institute. The study, which will be published Jan. 17, surveyed 436 workers in jobs across the five boroughs to provide a data-driven snapshot of a New Daily News low-wage sector of the economy. Nearly one- third of those surveyed supported at least one editor Myler takes additional family member on their wages; their median income was $9.50 an hour. More than on his former boss half made less than $10 an hour, and one in five earned less than $8 an hour.The state and Allan at the Post federal minimum wage is $7.25.The retail sector, which is increasingly dependent on pools of part-time labor to accommodate the more BY MATTHEW FLAMM flexible schedules of shoppers, has typically been considered an entry-level job, focused on His paper keeps shedding readers, he’s cut younger employees or women who are also some two dozen staffers in just the past few juggling family-raising duties. But more than months and he faces an irreversible decline 70% of surveyed workers had completed some in print advertising as readers and dollars college or possessed a college degree.The study move to the Web. But Daily News owner also revealed that 71% of retail workers do not Mort Zuckerman is not giving up. receive health benefits of any kind through That’s the message the real estate their work, with 34% turning to government mogul appears to be sending with his high- programs for medical coverage. Ⅲ profile new hire, Colin Myler, who started last week as the tabloid’s latest editor in chief. The 59-year-old Briton is a former BY THE NUMBERS Rupert Murdoch lieutenant and onetime

No. 2 editor at the archrival New York CHEERIO: Colin Weekly shift of the city’s economy

Post—which marks his appointment as the Myler holds up most aggressive strategic move Mr. Zuck- the last issue of ON SECOND THOUGHT Figures for holiday season retail sales and initial claims for unem- erman has made in years. the scandal- ployment benefits were surprisingly bad last And aside from his Fleet Street savvy, plagued News of week, just as euro worries were rising again. Mr.Myler brings a little something extra.As the World. the final editor of News of the World, he was caught up in last summer’s phone-hacking newscom 1.4% $20.1B 5.6M scandal,but was one of the few top Murdoch 2010 effective TOTAL magazine VISITORS to the TALE OF THE TAPE tax rate for private ad revenue for Met in the year employees to come off looking good. equity firm Carlyle 2011, up $8 ended June He opposed the family’s decision to COLIN MYLER VS. COL ALLAN Group million 2011, a record shut down the Sunday tabloid in an at- Source: Carlyle from 2010 Source: Metropolitan tempt to contain the scandal. And he in- Age Group Source: Publishers Museum of Art sisted James Murdoch had been informed 59 58 Information Bureau that hacking was widespread at the pa- Nationality STRUGGLING TO EAT The number of NYC residents who per—disputing the News Corp.scion’s tes- British Australian have difficulty affording food has slipped dramatically timony that he’d been told it was limited to Management style since 2008 but still accounts for 35% of the population. one rogue reporter. Now Mr. Myler will be taking his fight Hard-nosed Brutal with the Murdochs to the streets, as he Editing Style faces off against the Post and his former Fleet Fleet colleague—its formidable editor in chief, Street Street Col Allan. The new arrival should make See TAB WAR on Page 44

Source: Food Bank for New York City

ADDICTED TO NUMBERS? Jones Group struggles to find fit GET A DAILY DOSE AT @STATSANDTHECITY

CORRECTIONS of pressure,” said Diana some sizzle, the $3.6 billion Time Warner Cable and Cablevision do not have areas where Losing the buyer for its Katz, a retail analyst at Jones—which owns brands their subscribers overlap. That fact was misstated in the Jan. 9 jeans division is just one Lazard Capital Markets, such as Jones New York, article “Dolan’s Cablevision, Unplugged.” noting that denim “doesn’t Anne Klein and Nine West The photo that appeared in “Knitting event warms up Hilton” was of the problems fit in so well with Jones’ and sells at department of a runway model. The picture was misidentified in the Jan. 9 strategy.” stores including Macy’s— New York, New York. plaguing the clothier Dumping blue jeans is recently hired Stefani CLARIFICATION just one piece of Jones’ plan Greenfield, the founder of Mitchell Korbey, chair of the land use and environmental practice as it struggles to upgrade its Scoop, a chain of upscale group at law firm Herrick Feinstein, said that it would take 30 to BY ADRIANNE PASQUARELLI image from a dowdy, mid- The firm recently boutiques.The firm, helmed 40 years to build out all of the Jacob K. Javits Convention Center priced sportswear manufac- acquired pricey by Chief Executive Wesley site, and that it would take three to four years to get all the zoning Jones Group Inc.was dealt a blow last week turer to a luxury footwear Card and Richard Dickson, and environmental approvals. That was not clear in the Jan. 9 when plans to sell off its lagging jeans busi- and accessories firm. With shoe brand president and chief executive article “Javits’ end promises new dawn for neighborhood.” ness unraveled. The clothier had been ne- most shoppers pulling back Kurt Geiger of branded businesses,is also vol. xxviii, no. 3, january 16, 2012—Crain’s New York Business (issn 8756-789x) is published weekly, except for double issues the weeks of gotiating for months to sell the division to on purchases, the high-end shifting away from apparel July Fourth, Labor Day and Christmas, by Crain Communications Israeli manufacturer Delta Galil Indus- market is the only retail sec- toward expensive footwear. Inc., 711 Third Ave., New York, NY 10017. Periodicals postage paid at tries Ltd. for at least $350 million, but af- tor ringing up sales. Five It recently purchased Stuart New York, N.Y., and additional mailing offices. Postmaster: Send address changes to: Crain’s New York Business, Circulation Depart- ter third-quarter sales at the division fell a years ago,luxury represented Weitzman and Kurt Geiger. ment, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber whopping 18%, Delta Galil canceled the less than 1% of Jones’ busi- “Jones is feeling it now service: Call (877) 824-9379. Fax (313) 446-6777.$3.00 a copy, $99.95 one year, $179.95 two years. (GST No. 13676-0444-RT) deal. Retail analysts expect Jones to con- ness—this year, it is expected to make up and has been for a while,” said Judith Rus- ©Entire contents copyright 2012 by Crain Communications Inc. tinue searching for a buyer. about 17%. sell, editor of the Robin Report, which cov- All rights reserved. “The jeanswear division was under a lot To update its namesake brands and add See JONES on Page 44

January 16, 2012 | Crain’s New York Business | 3 20120116-NEWS--0004-NAT-CCI-CN_-- 1/13/2012 7:32 PM Page 1

COMMENTARY Trinity rides super-hot A fireable Hudson Square market offense Area’s growing enth-floor office at 205 Hudson St., buildings in Hudson Square feature where 13-foot-high ceilings and the loftlike spaces, with large win- appeal with tech stunning Hudson River views com- dows and big floor plates,that creative like being able to fire people who provide plement the firm’s chicly appointed companies crave.The properties have digs. The space is “is really beautiful, helped make the whole area, which services to me,”Mitt Romney said on the eve and media firms and it fits our ethos,” said Mr. Liber- extends from Canal Street to West of last week’s New Hampshire primary. We sends rents higher son, who also noted that the IN DEMAND 14th Street and Sixth Av- will hear that soundbite a lot in the months price was right. enue to the Hudson, one of to come, as we get to decide whether Mr. Tech-driven firms such the city’s hottest commer- BY THERESA AGOVINO as One King’s Lane, along cial neighborhoods. IRomney’s record as a Master of Creative Destruc- with an army of media com- 2X Leasing activity at Trini- tion—the process economist Joseph Schumpeter Two concerns dominated Joshua panies, were crucial drivers LEASING at ty’s 6 million-square-foot called “the essential fact about capitalism”—qualifies Liberson’s search last year for a Man- of commercial leasing last Trinity’s buildings empire more than doubled hattan outpost for One King’s Lane, year. In all, they accounted more than last year, to 1.25 million the fast-growing Internet home- for 28% of Manhattan leas- doubled last year square feet.Ad giant Omni- or disqualifies a Subaru. Our furnishings retailer. ing in 2011, up from 18% a com Group, Getty Images him from the coverage more “We are a small venture-capital- year earlier, according to and Horizon Media are presidency. closely resem- backed company that had to be judi- Cassidy Turley. That increase also among the companies that inked leas- For me, bled a 1969 cious about how we spent money,” came at a time when financial firms, es with Trinity last year. In addition, though, the com- AMC Ram- said the vice president of creative and which make up Manhattan’s largest Trinity also struck a deal for Beacon ment resonated bler—a car mar- integration at the San Francisco- tenant group, shed staff. Capital to redevelop 330 Hudson St. for another rea- keted by George based business. “We also wanted an Practically no building owner has into a 350,000-square-foot office son: Mr. Romney Romney, Mitt’s office that reflected our attitude, our felt that shift more favorably than tower. The British media conglomer- was talking about dad—held to- culture.” One King’s Lane landlord Trinity ate Pearson,a longtime Trinity tenant, health insurance. gether with After a six-month effort, the com- Real Estate, an arm of Trinity Church has agreed to move to the building And when he ut- Scotch tape, rub- pany found the perfect spot: a sev- downtown. Its 18 former industrial See TRINITY RIDES on Page 44 tered those words MICHAEL ber bands and that will follow GROSS hope. him like Harpies, When I went I had just learned looking for alter- that I couldn’t, in fact, fire the natives, the only viable one people who provide my in- was with the same insurance SPOOKY: Ghost surance. company. Our new premiums the Musical is I came into the workforce are half of what we used to pay, coming to Broadway in an era when gold-plated and if we don’t get sick this this spring. BMW health plans were the year, we’ll save a lot of dough. norm in New York media. In The important thing is that if 2001,when I quit my last full- we do get sick, we’ll be cov- time magazine-editing job, ered. At least, I hope so. losing my health insurance in I did manage to fire the the process,I segued smooth- group’s administrators, who ly to a group plan offered by a hadn’t quite made clear the professional journalists’ practical repercussions of last group. The full out-of- year’s change in reimburse- network coverage my wife in- ment policies. And our new sisted on was expensive, but agent is a patient man,who not we could afford it, only explained to and when you’re The real the wife and me, used to driving a repeatedly, until Beemer, a Subaru problem we understood it, just doesn’t cut it. with health the new reality of Over the next health coverage decade, nothing care? for the self- changed except Politics employed,but also our premiums, that we can’t count

which rose relent- on having our new group the hartman lessly to $26,000 a sole-proprietor year. Then, last plans for more year, our group announced than a year.His explanation for that our coverage was chang- all this boiled down to one On Broadway, fewer new ing. Instead of being reim- word: politics. bursed a percentage of what There’s been a lot of talk re- were deemed usual and cus- cently about what’s wrong tomary fees for medical servic- with America. The Demo- shows, but higher hopes es—which was less than satis- crats say it’s the Republican factory but neither immoral Congress. The Republicans nor criminal—we would agree on one thing, at least: Ghost, other new of technology,of course);and they can tering at the box office. Even the star- henceforth receive 140% of The fault lies with President take their kids to the surprise hit Dis- studded fare has failed to attract audi- what Medicare pays for those Obama. But, really, my new productions might ney musical, Newsies. ences. services. At the time, I didn’t insurance agent has it right. If that isn’t enough, Rebecca—a On a Clear Day You Can See Forev- realize that was a pittance and Politics—or rather, the failure brighten spring musical that has been translated into er, featuring Harry Connick Jr., has that it meant our insurer would of politicians to do more than seven languages and is wowing audi- been grossing less than half of its po- get richer while we got poorer. pander for votes—is the im- BY MIRIAM KREININ SOUCCAR ences in Europe—will stun ticket tential and will close in February. The That only became clear last mediate problem. Of course holders with a set that is lit on fire at Mountaintop, with Samuel Jackson fall, when I had minor surgery we can fire them, but what’s This spring on Broadway, theater- the end of every show. and Angela Bassett, was once herald- that cost $7,000 and I was re- the point? Odds are, the next goers can swoon as Latin pop star Theater executives are hoping the ed as the hot ticket of the season, but imbursed about $700. batch won’t be any better. Ricky Martin plays Che in the long- new crop of material will be enough to is now a regular in the discount bin— That’s when I awoke to the awaited revival of Evita; they can save what’s been a dismal season to last week it grossed just 57% of its pos- fact that our $26,000 hadn’t LISTEN to a discussion at watch the lead actor in Ghost the Mu- date, when many of the new produc- sible take. And Kim Cattrall’s Broad- bought us either a Beemer or CrainsNewYork.com/podcasts sical walk through walls (with the help tions have either shuttered or are tee- See SPRING ON BROADWAY on Page 44

4 | Crain’s New York Business | January 16, 2012 nb03p06.qxp 1/13/2012 7:56 PM Page 1

IN THE MARKETS We congratulate our client by Aaron Elstein

Juicy case of insider trading? he market for orange juice Tfutures, whose fame may have peaked in the 1983 Eddie Murphy movie Trading Places, swept back into the news last Monday, Jan. 9, when OJ prices erupted. Bloomberg News jumped on the story, quoting an analyst as attributing the jump to cold weather in on the successful financing of istockphoto Florida. Only later in the day did a more powerful reason emerge.That’s when the Food and Drug Administration announced it would beef up inspections and might even block imports of oranges from 3600, 3750 and 4060 Broadway Brazil after small amounts of a fungicide not permitted in the U.S. were found in OJ on shelves in American stores. New York, New York With the output from the world’s meat by flooding the market with largest producer of oranges under some prize cattle, there would be threat and a possible shortage loom- nothing to prevent either party from ing, traders quickly reacted, pushing trading on the information or pass- OJ prices through the roof.On Tues- ing it on. Nor was there anything to day,they popped to an all-time high. prevent a trader from acting on non- But as is frequently the case in the public information gained from a volatile commodities markets, the government agency, which is pre- price quickly sank back on Wednes- cisely what the bad guys in Trading day as traders mulled things over and Places aimed to do. decided the FDA news wasn’t really Gregory Mocek, a former enforce- all that alarming. ment director at the Commodity Futures The big question now is whether Trading Commission, said insider trad- some trader was leaked the news that ing was permitted because the gov- the FDA was preparing to make its ernment didn’t want to punish folks announcement and bet accordingly. like farmers or oil drillers for using If so, such activity would seem to be the futures markets to protect them- Want more info on our donedeals? Scan the QR Code with your smart phone. a classic case of insider trading and selves against price swings. would give regulators a chance to flex But 2010’s Dodd-Frank reform some of their newfound authority to law gave regulators the authority to police the futures marketplace. police futures markets for insider But while insider-trading laws trading for the first time. Last year, Discover Cassidy Turley. have governed the stock markets for the CFTC adopted the “Eddie decades and have recently resulted in Murphy Rule,” which deals with in- some high-profile convictions, such sider trading. Now regulators are activity traditionally hasn’t been a looking for a case to test their pow- crime in the futures world. If a ers. Last week’s squeeze in the OJ farmer tipped off a speculator that he market might be just the thing to was about to drive down the price of provide it.

Washington office for Wall Street’s Lehman’s shadow leading trade group, the Securities The collapse of Lehman Brothers Industry and Financial Markets As- obviously was a seminal event in sociation, also warned that SEC Wall Street history, not to mention plans to reform money-market Discover Leadership. / Discover Excellence. / Discover Success. a disaster for the nation’s economy. funds would “undermine every- So it was a bit jarring when a group thing these funds have stood for.” Cassidy Turley represented of banking leaders gathered at the The plan is to let the funds’ value failed firm’s former midtown head- float, rather than be fixed at $1 per quarters last week to tell the press share, which would make the funds American Transit Insurance Company how poorly conceived they find less stable and deprive them of a key many of the reforms generated in marketing plank. In its occupancy of 76,746 SF in MetroTech Center wake of the Lehman calamity to be. Unmentioned was the reason Jerry del Missier, co-CEO of Bar- why the government is even bother- clays Capital (the firm that bought ing with money markets. It is be- Lehman’s building and much of its cause Lehman’s bankruptcy caused Brian Weld and Richard Bernstein business), said the Volcker Rule, a big money-market fund that which limits the amount of trading owned a pile of the bank’s debt to acted as advisors U.S. banks can do with their own “break the buck,” which unleashed money, would have worldwide con- such enormous panic around the sequences that smack of “regulato- world that Washington had to step ry overreach that’s unprecedented.” in and backstop the entire $3.7 tril- Kenneth Bentsen, head of the lion money-market business. Ⅲ Discover excellence in commercial real estate services. Discover Cassidy Turley. www.cassidyturley.com LOSS POSTED by JPMorgan Chase’s mortgage division last year. The bulk of it—$1.7 billion—stemmed from litigation costs related $1.8Bto the thousands of lending- and foreclosure-related lawsuits. Tenant Representation / Capital Markets / Project Leasing / Corporate Services / Property Management / Project & Development Services

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CRAIN’S Business Breakfast Forum Meet NEW YORK,NEW YORK Valerie Block ERIC edited by SCHNEIDERMAN ATTORNEY GENERAL Arianna hooks up with Al-Jazeera in Qatar Join Crain’s New York Business for a DATE: rianna Huffington, the president and discussion with the THURSDAY, Aeditor in chief of Huffington Post New York Attorney FEBRUARY 16, Media Group, was quite the social General, Eric 2012 butterfly during a recent trip to Doha, Qatar.

Schneiderman. Mr. TIME: She hightailed it to the Persian Gulf nation Schneiderman will discuss the prospects of 8:00-8:30 AM on Jan. 7 to address a forum “on how social a nationwide settlement with major banks NETWORKING media can be used as a tool for building a on foreclosure abuses, the reforms he is BREAKFAST country,” according to her Twitter feed. ¶ working on for New York’s nonprofit 8:30-9:30 AM While there, Ms. Huffington enjoyed dinner organizations and his thoughts on PROGRAM at the Islamic Art Museum with Culture controversial issues, such as hydrofracking bloomberg news Minister Mohammed Rahman Abdul al-Thani, and the Indian Point nuclear plant, that are VENUE: and she watched 81-year-old Lorin Maazel conduct Mahler’s First Symphony at Doha’s facing New York. He will be questioned by THE ROOSEVELT Opera House. The media mogul, who sold HuffPo to AOL last year for $300 million, Crain’s assistant managing editor Erik HOTEL also stopped by Al-Jazeera for an interview with Tony Harris. ¶ Her tweets didn’t mention, 45 EAST 45TH ST. Engquist and another journalist. however, that Ms. Huffington is developing a video project for her ubiquitous site, and that the controversial Middle Eastern news organization could contribute programming. RESERVE YOUR SEAT Sponsored By “We are working on a new video offering, which is yet to be announced,” a company www.crainsnewyork.com/events-foye spokesman confirmed. “The meeting [with Al-Jazeera] was in part to discuss any ways to work together on that.” —valerie block Early Bird Registration Ends April 17th You must be pre-registered to attend this event. No refunds permitted. the past, and we can do it again.” Bill Bradley pens —matthew flamm Art mag set to political book launch in March Basketball great Bill Bradley Sports bars win The arty end of the newsstand (below) is coming off the in MSG, TWC fight rack—the place for the likes of sidelines. He’s hoping to score Artforum, The Fader and Bullett— CRAIN’S Business Breakfast Forum with a book about what the Knicks and Rangers fans have is about to get a little more country needs to do as the race for been the losers in MSG Network’s crowded. the White House heats up. fight with Time Warner Cable Jonathan Rheingold, the former The former U.S. senator, over programming fees. A handful publisher of hip-hop monthly onetime presidential contender of New York sports XXL and founder of Meet and legendary Knick has written bar owners, however, hip-hop quarterly We Can All Do Better, to be are winners. Since Respect, has teamed up released May 8, publisher the cable blackout, with photographer PATRICK J. FOYE Vanguard Press will announce they’ve been feasting Phil Knott to launch a Monday. Mr. Bradley’s sixth on MSG-sponsored tabloid-size magazine EXECUTIVE DIRECTOR OF THE PORT AUTHORITY book—his first since The New viewing parties that aimed at the fashion- OF NEW YORK AND NEW JERSEY American Story, which appeared in fill up their eateries and design-conscious 2007—We Can All Do Better will and boost revenues. set. Tally Ho! debuts provide a solution to the partisan Snap Sports Bar in March. Join Crain’s New York DATE: Business for a divide and a path out of the on West 14th “I see it as Purple TUESDAY, political stalemate in Washington, Street, for example, Fashion meets discussion with the APRIL 24, 2012 Port Authority’s newly according to the publisher. has held five Knicks events, Interview,” Mr. Rheingold said, “What comes through right where MSG paid for appetizers referring to the French “anti- appointed executive TIME: director, Patrick Foye. away when you talk to Bill is his and sent promotional teams to fashion” magazine and Andy 8:00-8:30 AM tremendous confidence in the hand out freebies. “Our revenue Warhol’s original downtown Mr. Foye will address NETWORKING American people and our goes up as much as 40% on those celebrity title. “We didn’t see the priorities he has BREAKFAST developed for the 8:30-9:30 AM potential for accomplishing so nights, compared with a regular anything out there to connect David Steinberger Matthew agency during his first six months in charge, PROGRAM much more,” , night here,” Snap owner young people interested in art with what his primary concerns are for the World CEO of the Perseus Books Isaacs gushed. emerging and established artists.” Trade Center reconstruction and how New York VENUE: Group, Vanguard’s parent, said in Rangers fans have been Savas Abadsidis, who was editor is faring in the competition against other major THE SHERATON an email. “He has a plan for how flocking to East Village hangout of Abercrombie & Fitch’s A&F ports. He will be questioned by Crain’s 811 SEVENTH AVE. to tap into that potential that will The Blind Pig, which has hosted Quarterly, will be editorial assistant managing editor Erik Engquist and METROPOLITAN make this book a must-read.” three hockey parties. “Many consultant. Artists showcased in another journalist. BALLROOM Readers will have to wait until people stay past the end of the the Tally Ho! prototype include May for specifics. game,” crowed General Manager photographer Mick Rock and RESERVE YOUR SEAT Sponsored By Disrespect for the federal Camaron Kass. painter Anthony Lister. www.crainsnewyork.com/events-foye government has never been The bars may be in the Mr. Rheingold will publish the higher, Mr. Bradley noted in money for quite a while as the magazine as part of Musinart, his a statement, adding that contract fight drags on. integrated media sales agency. Early Bird Registration Ends April 17th “We’ve had no meaningful Circulation will start out at You must be pre-registered to attend this event. the country’s problems “are No refunds permitted. severe and challenging.” dialogue with Time Warner,” 75,000 copies, with some given But, he said, said an MSG spokesman. “So away at art galleries and “Americans have we’ll continue to do the boutiques, and others sold on met great viewing parties.” newsstands for $9.95. challenges in —lisa fickenscher —matthew flamm

8 | Crain’s New York Business | January 16, 2012

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substantially subsidized projects. The speaker instead proposed an incentive fund of up to $10 million TECH CAMPUS NYU Gains THE INSIDER to encourage retailers to guarantee SEN. KIRSTEN GILLIBRAND is urging the city to approve New a living wage at subsidized projects. York University’s proposal for an urban sciences center in an by Jeremy Smerd and Shane Dixon Kavanaugh Ms. Quinn said she would press underused building at 370 Jay St. leased to the Metropolitan the administration to tie subsidies Transportation Authority. Mayor Michael Bloomberg last to a living-wage mandate on a case- month tapped Cornell University to build a campus on by-case basis. Her bill, to be Roosevelt Island but could still approve applications for introduced next month, could be schools in other locations. Gillibrand delayed if it threatens to push “An applied science center in downtown Brooklyn would FreshDirect out of the city.The continue the revitalization of the business district and bolster Brooklyn’s Quinn crafts food deliverer is looking for city tax thriving tech industry, all without the need to construct new facilities,” Ms. breaks as it weighs a $100 million Gillibrand wrote to the mayor. subsidy package from New Jersey In the letter, which was copied to MTA chief Joseph Lhota, she called the living-wage deal to move 2,300 jobs there. building a “blight” on the community—a sentiment shared by elected officials The compromise appeals to the representing downtown Brooklyn. city’s business community, which Mr. Lhota said during his Senate confirmation hearing ity Council adamantly opposes last week that he is talking with the city, which owns the Speaker Christine the union-backed property, but that his biggest concern remains relocating Quinn (right) bill. agency communications equipment stored at 370 Jay St. unveiled a com- The speaker is The transit chief said he “cannot be in the position of subsidizing NYU.” promise measure expected to run for Lhota mayor next year Translation: His agency won’t shoulder the cost of moving Con the living wage issue Friday and has struggled its stuff. Sources said the MTA is seeking at least $50 million, while NYU that would require higher pay for months on how wants to pay about $20 million. in limited cases. to resolve the It calls for a higher living-wage issue without alienating who were in office when the law minimum wage for direct business or labor passed last year.Their benefits Is PlaNYC employees of tax-break interests. are guaranteed by the state buck ennis sustainable? recipients. A building service constitution. prevailing-wage provision that has been pushed quietly by Concerned that the next mayor Pension loophole may not embrace the goals of 32BJ SEIU for two years will be included in a separate bill. On the day earlier this month that GOP missed PlaNYC, the Rockefeller Brothers The prevailing rate for commercial office cleaners is $21.80 an former Sen. Carl Kruger filed for his candidate’s rants Fund has commissioned a study to hour, plus $8.36 in benefits; the statewide and federal pension, Assemblyman Dick examine whether local Gottfried’s newsletter arrived in the Brooklyn Republicans tapped David organizations will be able to minimum wage is $7.25. mail.The Public Integrity and Storobin to run in the special state advance Michael Bloomberg’s Workers hired by tenants at subsidized developments Reform Act of 2011, it said, calls Senate election to succeed Carl sustainability plan after he leaves would not be covered by Ms. Quinn’s measure, a for “forfeiture of pensions for public Kruger with—they claim—no office at the end of 2013. Former disappointment to the Retail, Wholesale and Department officials convicted of a felony.” It knowledge that Mr. Storobin Economic Development Corp. did not mention that the provision founded and wrote for a website executive Kate Ascher, now a Store Union.The union’s bill would require a $10 wage plus does not apply to government whose articles have been picked up consultant with Buro Happold, will benefits, or $11.50 without benefits, for most workers at officials—such as Mr. Kruger— by white-supremacist chat rooms. lead the study, which will be Mr. Storobin, a Brighton Beach presented to environmental groups attorney and vice chairman of the in the coming weeks. Brooklyn GOP,was editor in chief of the site, GlobalPolitician.com, and published scores of articles over Genting may seek several years, blogger Gatemouth tax-free bonds discovered. Yet Brooklyn GOP We’re counting our Chairman Craig Eaton said, “I’ve Gov. Andrew Cuomo has said the plan never heard of Global Politician.” he is negotiating with Genting to One posting was Mr. Storobin’s build a convention center (pictured) all 217,500 of them! May 2005 interview with an official at Aqueduct won’t cost state blessings… from Freedom Front, a white- taxpayers a dime, but an insider separatist group in South Africa. briefed on the proposal said the The group supports a whites-only racino operator is asking about tax- colony there and 22 Cortlandt Street accuses South Africa’s government of keeping whites Municipal Credit Union out of work. 126,000 RSF Renewal Mr. Storobin’s postings recently vanished from Century 21 Department Store Global Politician, 91,500 RSF Expansion but he said he has no idea why.“My Barrett Stern, Executive Managing Director, Grubb & Ellis—Exclusive Leasing and Management Agent views have evolved over the years, but David Feit and Mark Schlanger of the Law Offices of David Feit—counsel for Ownership there’s nothing I’ve been ashamed of,” he said. exempt bonds to finance the Brooklyn Councilman Lew Fidler, project. Bondholders would not Current Availabilities: the Democrat expected to square have to pay taxes on the interest 17,200 RSF full floor off against Mr. Storobin in the they earn, which deprives the March 20 election, scoffed at the government of revenue. 8,700 RSF divided floor coincidence of his rival’s candidacy Tax-free bonds have been used For more information contact and the disappearance of his to finance other large projects, like the exclusive agent: Internet posts. Yankee Stadium, deemed to be of Said Mr. Fidler, “I have a record public benefit. The convention Barrett Stern to run on that’s not going to be center would be built on state- Executive Managing Director Member expunged.” owned land leased to Genting. Ⅲ Grubb & Ellis NEW YORK ® 212.326.4902 1301 Avenue of the Americas, New York, NY 10036 [email protected] 212.759.9700 | www.grubb-ellis.com REAL ESTATE BOARD OF NEW YORK For daily political and government news, subscribe to CRAIN’S INSIDER @ www.crainsnewyork.com/insider

10 | Crain’s New York Business | January 16, 2012

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VIEWPOINT Bloomberg’s final exam editor in chief Rance Crain publisher, vp Jill R. Kaplan ayor Michael Bloomberg’s address just the quality of teachers that must be improved. EDITORIAL last week reflected his priorities in Relying on test scores is also problematic.The best way to editor Xana Antunes managing editor Glenn Coleman the twilight of his mayoralty: to measure the value that teachers add is to test their students at deputy managing editors Valerie Block, secure the legacy he covets most— the beginning and end of the year. But that’s a lot of testing, Erik Ipsen assistant managing editor Erik Engquist that of “the education mayor”—and and exams that accurately evaluate critical thinking and senior producer, projects Kira Bindrim to better spread the city’s prosperity writing skills are expensive. City students spent the mayor’s senior producer, news Elisabeth Butler Cordova contributing editor across the five boroughs. His first two terms filling in bubbles on predictable, simplistic Elaine Pofeldt penultimate State of the City speech before he departs City statewide assessments. A fix is under way and will surely columnists Greg David, Michael Gross, Alair Townsend Hall was almost entirely devoted to these two issues. continue beyond the mayor’s departure in December 2013. pulse editor Barbara Benson M senior reporters Theresa Agovino, The proposals he unveiled indicate he is not resigned to Nonetheless, Mr. Bloomberg is correct that teacher quality Aaron Elstein, Lisa Fickenscher, Matthew Flamm, the malaise of a lame-duck term or the limitations of a must be schools’ top priority. He deserves credit for continuing Daniel Massey, Miriam Kreinin Souccar constrained budget. We are glad for that, but the initiatives to fight for it despite reporters Amanda Fung, Shane Dixon Kavanaugh, Adrianne Pasquarelli, Jeremy Smerd he outlined are relatively modest and face uncertain futures. His modest objections from the reporter/producer Emily Laermer Mr. Bloomberg spent most of his address on education union. It shows his art director Steven Krupinski deputy art director Carolyn McClain and made clear his frustrations with the city’s teachers’ initiatives face continuing commitment staff photographer Buck Ennis union, which has long resisted reform. He knows that by far to reform. We also like copy desk chief Stephen Noveck uncertain copy editor Thaddeus Rutkowski the best thing schools can do for children is give them his plan to add schools research editor Dana Gordon excellent teachers.The rub is that no urban school district futures with private-employer assistant research editor Suzanne Panara research interns Callie Eidler, Helen Kwong has figured out how to recruit, identify and retain great ones. partners, such as IBM, editorial intern Ali Elkin The mayor proposed two solutions: Pay an extra $25,000 that make education EDITORIAL AND ADVERTISING OFFICES over five years to loan-burdened teachers who graduated in relevant to disillusioned 711 Third Ave., New York, NY 10017-5806 the top tier of their college class, and award $20,000 raises to teenagers. editorial: 212.210.0277 Fax 212.210.0799 advertising: 212.210.0711 teachers rated highly effective for two consecutive years. The mayor’s endorsement of a hike in the state’s minimum Cable craincom nyk While such measures seem logical, their effect might be wage for the first time since 2004 won’t reverse national and Fax 212.210.0499 minimal. No single factor, such as a teacher’s college grades, global economic forces but is worth considering. Raising the Entire contents ©copyright 2012 Crain Communications Inc. All rights reserved. predicts teaching success very well. Monetary incentives do $7.25 hourly minimum statewide will eliminate some low- ®CityBusiness is a registered trademark of MCP not improve performance of cognitive tasks like teaching. paying jobs but is unlikely to push employers out of the city, Inc., used under license agreement. Moreover, measuring success is tricky.The mayor suggested unlike the imposition of a “living wage.” Connecticut and TO SUBSCRIBE: using “exactly the same process” as the one for granting For subscription information and delivery concerns, Massachusetts have already raised their minimum wages, and please e-mail [email protected] tenure: Principals decide and the superintendent signs off. New Jersey legislators are considering it. or call 877-824-9379 (in the U.S. and Canada) or But research shows almost zero correlation between But we encourage Mr. Bloomberg to keep pushing the 313-446-0450 (all other locations.) $3.00 a copy, $99.95 one year, $179.95 two years. principals’ ratings of teachers and student achievement, in school system to produce students who are not resigned to a www.crainsnewyork.com

part because principals vary in competence. Clearly, it is not career of minimum-wage jobs. ADVERTISING AND MARKETING advertising director Trish Henry senior account managers Irene Bar-Am, Courtney McCombs, Sheryl Rose, Suzanne Wilson CRAIN’S ONLINE POLL COMMENTS account executive Jill Bottomley Kunkes classified print & online Mike Vargas sales coordinator print & online SHOULD HILLARY Danielle Wiener newsletter product manager CLINTON REPLACE Alexis Sinclair Too many attendees? credit Todd J. Masura 313.446.6097 JOE BIDEN AS THE marketing manager Sabra Harrison director, audience development PRESIDENT’S RUNNING NEW CENTER, MORE HOTEL ROOMS governor has a great plan that could set in Michael O’Connor Stop! The governor’s plan for a Queens motion a north-south corridor through Queens event producer Courtney Williams MATE? Lauren Melesio convention center (“Cuomo wants nation’s that links the two airports. reprint sales manager Date of poll: Jan. 9 biggest convention center,” www.crains —david dephillips senior web developer, interactive 436 votes newyork.com) is well-intentioned, but the city Vice president Chris O’Donnell must have the hotel rooms to service the Franchise Logistics NEW YORK PRODUCTION exhibitors and attendees before we go trying to . 61% production and pre-press director

Yes. “The VP do this. Las Vegas and Orlando both struggled

debates CORNELL’S CLIMB NOT UNLIKELY Michael Corsi with their mega-venues until the number of advertising production manager would be . 39% hotel rooms grew significantly.Then, and only Re: “The inside story of Cornell’s tech campus Suzanne Fleischman Wies hottest ticket then, can you add more exhibit space. win” (www.crainsnewyork.com). Unlikely climb in town.” PUBLISHED BY CRAIN COMMUNICATIONS INC. The governor doesn’t get it, so ask some to the top? Aren’t you being a little harsh? chairman Keith E. Crain people in the events business how this works. Stanford is richer, but it is sitting on a mother president Rance Crain Moving to a no-hotels-available Queens is just lode of innovation in Silicon Valley. Cornell sits Merrilee Crain No. “She is a secretary a stupid move. Oh, and then we need the on the frozen tundra of Ithaca. treasurer Mary Kay Crain fantastic airline and rail capacity to move this number of But give the Big Red a few years of executive vp, operations William Morrow secretary of people in and out.This new center would be a operating in the New York climate of senior vp, group publisher Gloria Scoby state.” lost island out in Queens. entrepreneurship and you may be surprised group vp, technology, circulation, manufacturing Robert C. Adams —bill r. sell to see this less “prestigious” university eat vice president/production & Revenue and lead generation strategist Stanford’s lunch. manufacturing David Kamis Portfolio Media Group —andrew berger chief information officer Paul Dalpiaz founder G.D. Crain Jr. (1885-1973) A NEW CORRIDOR CRAIN’S WELCOMES SUBMISSIONS to its opinion chairman Mrs. G.D. Crain Jr. (1911-1996)

bloomberg news pages. Send letters to [email protected]. For this week’s questions: Go to The plan for a Queens convention center is Send columns of 475 words or fewer to www.crainsnewyork.com/poll to have your say. very similar to the casino legislation evolving [email protected]. Please include the writer’s for the Miami Convention Center.The name, company, address and telephone number.

12 | Crain’s New York Business | January 16, 2012

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OPINION

12.5% of total revenues. At the MTA,the pension costs for the sub- Pension reform is ways, buses, bridges and tunnels will rise from $314 million in FY 2004 to $1 billion in FY 2014—an average annual growth rate of 12%. highest priority Left unchecked, pension costs will total 30% of payroll and 19% of fare and toll revenue by FY 2014. BY CAROL KELLERMANN The state, local governments and school districts also face serious ov. Andrew Cuomo’s second executive budget, challenges. State government pen- due Tuesday, will establish his fiscal agenda for sion costs are expected to grow from $455 million to $2 billion from FY the coming months’ negotiation with the state 2004 to FY 2014, and they would Legislature. A second year of progress toward have been much higher had the more sustainable government spending is im- state not made the unfortunate de- portant, and measures that reduce costs over the long term are cision to amortize required pay- G ments, with interest. Local govern- crucial. Topping the list is pension reform. The governor has a ments and school districts face strong hand in the budget process, and he should use it to bring pressure from the 2% property-tax cap and will be hard-pressed to ex- about more affordable pension ben- plain their budgetary choices to efits at all levels of government. The state and voters if state leaders do nothing to In fiscal year 2009, the most re- provide relief from the pension cent year for which there is available local tax burden costs they mandate. comparative data, New York’s state A new package of pension bene- and local tax burden was the third is the nation’s fits for new employees would bring highest in the country at $143 per New York more closely in line with $1,000 of personal income—40% third highest national norms, saving New York above the national average. Pension state and local governments $123 costs are a contributing factor, at billion over the next 30 years. Pub- $12 per $1,000 of personal income, lic sector employees in New York more than 70% above the national state are entitled to an attractive average and the second highest MTA, largely left out of previous pension plan, but not one that is among the 50 states. Per person, reforms, face sharp increases. New among the costliest in the nation. A New Yorkers pay $574 a year in tax- York City’s pension costs were $2.4 pension reform proposal should be es for public employee pensions, billion in FY 2004 but are expected in the governor’s budget, and the more than twice the national to reach $8.6 billion by FY 2014— Legislature should swiftly adopt it. average. an astoundingly high average annu- The burden is expected to get al growth rate of 14%, which will Carol Kellermann is president of the worse. New York City and the amount to 40% of payroll and Citizens Budget Commission.

care bills—government and com- mercial insurers—save so much Hospitals give lip money. What’s more, they want the money now, based on promises of savings. Has everyone forgotten service to change that the federal government gave New York $1 billion just a few years ago for the very same purpose? How ast week, three hospital executives told some 500 many more billions do the hospitals people who flocked to the Brooklyn Marriott for want? the Crain’sforum on the future of the borough’s em- We want to change, but we really like the status quo. For all the battled health care system that they know comments about how far-reaching changes have to be made. we know health care I don’t think they mean it. Here’s why. has to change, the bot- L tom line from the pan- If it weren’t for Medicaid budget cuts, all would be el was: fine.The panelists longed for the day when Medicaid We oppose giving the health care commis- paid so well that it could subsidize a lot less Medicaid sioner strong powers to other kinds of patients. Medicaid money. oust inept management cuts are the primary reason hospi- Primary care is great, and boards. tals say they are in trouble. but we need more money to We know Brook- Well, despite those cuts, New do it. Yes, the panelists GREG lyn hospitals need capi- York still spent $9,056 per Medicaid agreed, Brooklyn needs DAVID tal, but we will continue enrollee in federal fiscal year 2008, to build a better primary to insist that New York the highest amount in the country care network. They de- be the only state to pro- and nearly 60% higher than the na- manded that they be given money to hibit publicly held health care com- tional median of $5,685. Hospitals do it. After all, when primary care is panies from investing money. in other states appear to do better on provided,the people who pay health We know our labor costs are way too high, but we will address RISING COSTS OF HEALTH CARE them only in partnership with our unions. NEW YORK CALIFORNIA NEW JERSEY Check out the accompanying Overall per capita spending $8,341 $6,238 $7,583 chart that shows health care spend- ing in New York, California and * Annual increase 5.9% 5.9% 6.0% New Jersey.And then remember,the Percentage spent on hospital care 36.1% 34.8% 33.8% quality of the care delivered in New *1991 to 2009 Source: Citizens Budget Commission/Kaiser Family Foundation York by all measures is mediocre. Heal thyself.

14 | Crain’s New York Business | January 16, 2012

20120116-NEWS--0018-NAT-CCI-CN_-- 1/12/2012 11:39 AM Page 1

NEIGHBORHOOD JOURNAL LIC shouts ‘cut’ to film crews

business in the area. “Bright lights down to accommodate filming,” the problem, a Residents tire of too are shining in our windows late at said Joseph Conley, chairman of meeting that much action, too night,and crews are very loud.We’re Community Board 2 in Queens, seems to have living in a film set.” which represents Long Island City, been a hit. many cameras and Sunnyside, Woodside and a portion “The meeting Victims of success of Maspeth. Contrary to what City was very produc- too little parking In addition to noise and light Hall says, Mr. Conley sees little ev- tive, as our office pollution, Long Island City resi- idence of an upside. emphasized the BY MARINE COLE dents complain about the loss of big “Production crews don’t localize, important eco- blocks of parking spaces, a situation so there’s no benefit to the commu- nomic role film n the current television sea- made worse, they say, by production nity,” he said, pointing out that and television ROLL ’EM: Silvercup son, New York is serving as crews illegally parking personal when it comes to meals,for example, production plays is one of two major home base for 23 prime-time cars in spaces reserved for produc- the crews bring in their own outside in the city,” said a studios in Queens. series. Not only that, but 188 tion trucks. catering companies. spokeswoman

full-length feature movies Many Long Island City resi- With complaints from residents for the Mayor’s nolan robert Iwere shot here in 2011.Thrilled city dents and businesses feel they’ve in- and businesses rising, Mr. Conley is Office of Media officials would like to see more, creasingly become victims of the asking the Bloomberg administra- and Entertainment, which includes 4,000 businesses ranging from pointing out that such productions city’s success, which was stoked in tion to work together with produc- the Mayor’s Office of Film,Theatre hardware stores and florists to dry pump nearly $5 billion into the city’s part by fat tax subsidies that make it tion companies to make filming less and Broadcasting. cleaners and restaurants have bene- economy each year and support cheaper to shoot in New York.With disruptive for the community. He fited, according to the city. roughly 100,000 jobs. Long Island City’s breathtaking and others suggest setting a limit on Connecting to local businesses As for New Yorkers’favorite con- In Long Island City, Queens, views of midtown across the East the number of productions in a giv- She added that the office always cern—parking—city officials point though, many people have a decid- River, and not one but two produc- en period. encourages productions to patron- out that as inconvenient as tempo- edly different take on all this.There, tion facilities—Silvercup and Kauf- Mr. Greenberg sees another way ize local businesses and specifically rary parking bans are,at least they’re in the epicenter of much of the ac- man Astoria Studios—nearby, for Hollywood to endear itself to pointed to its 6-year-old “Made in not a surprise. “No parking” signs tion, many residents are saying shows including Unforgettable Per- Long Island City residents.He sug- NY” discount card program. That must be posted at least 48 hours enough already, and some are even son of Interest and Nurse Jackie have gests that production companies effort connects productions shoot- in advance. begging the city to yell, “Cut.” all made extensive use of area streets could score major points by helping ing on location with local business- Whether any or all of these steps “On average, there are two pro- for shooting, according to permits out with local projects like street re- es. More recently, the city released a will make life any easier in Long Is- ductions a week here,” said Kenny filed with the Mayor’s Office of pairs or park cleaning. smartphone application to help pro- land City remains to be seen. Greenberg, a resident of the Film, Theatre and Broadcasting. Early last month, Mr. Conley ductions quickly find what they “We’ll be looking at the next per- Hunters Point section of Long Is- “It’s just not fair because busi- and the board’s district manager sat need from area businesses when mits issued to see if there’s any im- land City who runs an electric-sign nesses are temporarily being shut down with city officials to discuss they’re out on the street. More than provement,” said Mr. Conley. Ⅲ

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18 | Crain’s New York Business | January 16, 2012

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SMALL BUSINESS In a down economy, owners must learn to adapt or die

In 2010, she launched EcoChi, a have to reconfigure their business Sole proprietors and Manhattan business that helps models, too, or risk falling by the entrepreneurs must clients use an interior-design system wayside. she created that combines green liv- Roy Cohen, a career coach in be more nimble ing ideas, feng shui and environ- Manhattan, said people are usually than ever before mental psychology. Ms. Duneier reluctant to change their businesses, also wrote a book,EcoChi:Designing but “now they are being a lot more the Human Experience.Her revenues flexible in terms of the options they BY EILENE ZIMMERMAN doubled in one year. will consider.” “I’ve learned that businesses that Veering into a new area can be fter the real estate bub- survive and thrive in a down econo- risky for small firms with limited re- ble burst, Debra Du- my are the ones that respond quick- sources. Bradford Agry, a business buck ennis neier’s business selling ly,” she said. coach and owner of CareerTeam, a HUNTING FOR HEIRS: After his work for landlords dried up, attorney Charles-Eric Gordon luxury real estate career management firm in Manhat- refocused on trust- and estate-related business to weather the economic downturn. dropped precipitously, Reconfiguring business models tan, said small business owners “tend Aso she decided to change her busi- It’s not just big corporations like to sink money too early into things ness.She began studying with a feng Kodak and BlackBerry originator like fancy websites and advertising petitive school admissions world, For highly trained professionals, shui master and became a certified Research in Motion that are strug- before they’ve tested the market.” Karen Quinn wrote Testing for reinventing a practice often means practitioner. She also became a gling to survive in an “adapt or die” Yet some business owners feel Kindergarten,but it didn’t sell as well shifting quickly to services that are LEED-accredited green associate economy. Many New York City they have no choice but to change. as her first book did.“I could see the in demand and de-emphasizing the professional and focused her work sole proprietors and small compa- After writing the 2002 best-seller publishing industry was changing,” rest. Prior to 2009, half of investiga- on corporate spaces rather than res- nies in struggling industries or fast- The Ivy Chronicles, a satire about she said. “And I wanted to create tive attorney Charles-Eric Gordon’s idential ones. changing fields are realizing they working in New York City’s com- something that would give me a work was for landlords, tracking steady income.” down tenants violating the city’s She soon produced a test-prep rent stabilization laws. After the lo- board game for preschoolers to go cal real estate market tanked, land- with Testing for Kindergarten and lords cut back their use of his serv- sold it online for $300. (It’s hand- ices. “In 2009 I earned 35% of what assembled in the U.S.) “It did so I earned in 2008, which was my best much better than I thought it year,” he said. would,” she said. In response, Mr. Gordon began emphasizing his work identifying Shifting quickly and locating missing heirs, trust In 2010, Ms. Quinn teamed up beneficiaries and witnesses to the with Michael McCurdy, parent ex- execution of wills. “Even in a reces- pert for New York’s gifted and tal- sion, people die, and fees for this ul- ented program, to launch Testing timately come out of the estate,” he Mom.com, a site that provides prac- said. “It’s not dependent on the tice questions, online support and economy.” seminars to help parents prepare Mr. Gordon’s work with trust their children for entrance exams to and estate attorneys now makes up private schools and gifted and talent- 70% of his practice.He hopes to sur- ed programs.Ms.Quinn has since re- pass his 2008 income this year. Ⅲ located to San Diego but travels reg- ularly to New York City,where about To sign up for Crain’s half the site’s customers live.Month- SMALL BUSINESS newsletter, go to to-month sales of paid memberships www.crainsnewyork.com/smallbiz. are increasing about 40%. $568 million in VC funding for NY state

CB Insights Chief Executive BY EMILY LAERMER Anand Sanwal.“Massachusetts was consistently No. 2 in the market, so It’s back to bronze for New York. this is a return to normalcy.” The state fell to third place, behind Indeed,three of New York City’s California and Massachusetts, in hottest startups—Tumblr, ZocDoc venture capital funding for the final and Buddy Media—landed more quarter of 2011. than $50 million each in VC fund- New York boasted 73 deals ing in the third quarter. worth a total of $568 million in the New York City accounted for 61 fourth quarter, according to a report of the state’s fourth-quarter deals, by industry tracker CB Insights. tallying some $491 million. During That’s up from 66 deals totaling the same period, the state captured $466 million in the fourth quarter of just 10% of the nation’s venture cap- 2010 but down from 86 deals worth ital funds, compared with 12% for a whopping $831 million in the Massachusetts and 40% for Califor- third quarter of last year.It was those nia, home to VC hub Silicon Valley. third-quarter tallies that temporar- But New York ran second only to ily stripped Massachusetts of its No. California for tech-related deals, 2 ranking. which made up 59% of New York “New York’s performance [in the state’s total number, or some $363 third quarter] was an anomaly,”said million. Ⅲ

20 | Crain’s New York Business | January 16, 2012

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FOR THE RECORD

estimated liabilities of $10,000,001 to in the blueprint room, Olmsted Center, ● Housing Authority $50 million and estimated assets of Queens, from 8 a.m. to 3 p.m. The fee is Seeks competitive sealed bids by ABOUT THIS SECTION $1,000,001 to $10 million. payable by company check or money 10:30 a.m. on Feb. 3 for grounds order to the City of NY, Parks and improvements at O’Dwyer Gardens in FOR THE RECORD is a weekly listing of information from the public record that ● WH Shipping Recreation. Contact Juan Alban Brooklyn. Bid documents are available can help businesspeople in the New York area find opportunities, potential 494 Eighth Ave., Manhattan at (718) 760-6771 or Monday through Friday, 9 a.m. to 4 new clients and updates on competitors. Filed for Chapter 7 bankruptcy [email protected]. p.m., for a $25 fee in the form of a To ask questions or get more information on this section, contact Suzanne protection on Dec. 30. The filing cites money order or certified check made Panara at [email protected]. estimated liabilities of $1,000,001 to ● Department of Parks and Recreation payable to NYCHA. To make inquiries, $10 million and estimated assets of Seeks competitive sealed bids by 10:30 contact Gloria Guillo at (212) 306-3121 $500,001 to $1 million. a.m. on Feb. 2 for construction of or [email protected]. volleyball courts located near the Rodman entrance at College Point ● School Construction Authority BANKRUPTCIES ● Constellation Inc. GOVERNMENT CONTRACT Boulevard and 59th Avenue in Flushing Seeks competitive sealed bids by 11 a.m. 107 E. 42nd St., Manhattan OPPORTUNITIES Meadows-Corona Park, Queens. Bid on Jan. 23 for an auditorium stage The following listings are selected from Filed for Chapter 11 bankruptcy documents are available for a fee of $25 upgrade at P.S. 61 in Manhattan. Bid the most recent available filings by protection on Dec. 30. The filing cites Following are selected contract in the blueprint room, Olmsted Center, documents are available for $100 by companies seeking bankruptcy protection estimated liabilities of $500,001 to $1 opportunities recently announced by New Queens, from 8 a.m. to 3 p.m. The fee is check or money order only, payable to in the Southern and Eastern Districts of million and estimated assets of $100,001 York City agencies.To learn how to sell payable by company check or money New York City School Construction New York. Information was obtained to $500,000. goods and services to city government, visit order to the City of NY, Parks and Authority. Contact Rookmin Singh at from U.S. Bankruptcy Court records www.nyc.gov/selltonyc. For a searchable Recreation. Contact Juan Alban (718) 752-5843 or [email protected]. available on Public Access to Court ● Hamptons Television database of current procurement notices, at (718) 760-6771 or Electronic Records. Listings are in 2411 Montauk Highway, visit www.nyc.gov/cityrecord. Listings are [email protected]. GOODS AND SERVICES alphabetical order. Bridgehampton, L.I. alphabetical by category and department. ● Department of Citywide Administrative Filed for Chapter 11 bankruptcy ● Department of Transportation Services ● Brendyl Inc. protection on Jan. 3. The filing cites CONSTRUCTION SERVICES Seeks competitive sealed bids by 11 a.m. Seeks competitive sealed bids by 10:30 41 Murray St., Manhattan estimated liabilities of $10,000,001 to ● Department of Design and Construction on Jan. 24 for installing, removing or a.m. on Jan. 23 for film and stretch wrap Filed for Chapter 11 bankruptcy $50 million and estimated assets of Seeks competitive sealed bids by 11 a.m. relocating equipment furnished by the for palletizing. To make inquiries, protection on Jan 3. The filing cites $1,000,001 to $10 million. on Jan. 31 for installation of sidewalks, city or the contractor and for other contact Anna Wong at (212) 669-8610 estimated liabilities of $100,001 to adjacent curbs and hydrant fenders, and electrical work in connection with the or [email protected]. $500,000 and estimated assets of ● Madison Williams and Co. restoration of hydrant cuts in various lighting of roads, parks and public places $50,001 to $100,000. The creditor with 527 Madison Ave., Manhattan locations citywide. Bid documents are in all boroughs. A printed copy of the ● Department of Education the largest unsecured claim is Richard Filed for Chapter 7 bankruptcy $35, payable by check or money order solicitation can be purchased at the Seeks competitive sealed bids by 4 p.m. Eisenberg, owed $60,000. protection on Dec. 29. The filing cites only. Bid documents are available at Office of the Agency Chief Contracting on Feb. 6 for all labor and new materials, estimated liabilities of $1,000,001 to www.nyc.gov/ddc. To make inquiries, Officer between 9 a.m. and 3 p.m., operations, equipment, supervision and ● Charm-Zone Inc. $10 million and estimated assets of contact Ben Perrone at (718) 391-2614. Monday to Friday, at 55 Water St., incidentals necessary to facilitate, erect, 175 Allen Blvd., Farmingdale, L.I. $1,000,001 to $10 million. Manhattan. A deposit of $50 is required construct, install, repair and finish Filed for Chapter 11 bankruptcy ● Department of Parks and Recreation for the specification book in the form of masonry. Bid opening will be Feb. 7 protection on Jan. 3. The filing cites ● Plum TV Inc. Seeks competitive sealed bids by 10:30 a certified check or money order only, at 11 a.m. For all questions related estimated liabilities of $500,001 to $1 890 Garrison Ave., Bronx a.m. on Jan. 31 for reconstruction of payable to the New York City to the BID, please send an email to million and estimated assets of $500,001 Filed for Chapter 11 bankruptcy deteriorated structural system. Bid Department of Transportation. Contact [email protected]. to $1 million. protection on Jan. 3. The filingDownloa cites documents are available for a fee of $25 Frank Caiazzo at (718) 786-4061. dContinued on Page 24

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22 | Crain’s New York Business | January 16, 2012

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FOR THE RECORD

Continued from Page 22 Madison Ave. The firm will occupy space sublandlord, Newtek, was represented by ● Fire Department on the eighth, 10th, 11th, 15th, 18th and Brad Gerla, also of CBRE.The asking Seeks competitive sealed bids by 4 p.m. 32nd floors.The tenant was represented rent was $35 per square foot. DEALS ROUNDUP on Jan. 26 for a contractor to inspect, by Cassidy Turley’s Peter Hennessy.The TRANSACTION SIZE hydrostatically test, repair and fill landlord, Vornado Realty Trust, was SELLER/TARGET (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE FDNY-owned aluminum or steel represented in-house by Thomas STOCK TRANSACTIONS oxygen and nitrogen cylinders. Last day Costanzo and Glen Weiss.The asking New Enterprise $2,036.0 Bristol-Myers Squibb Co. SB M&A for questions is no later than 10 business rent was in the $70s per square foot. Following are recent insider transactions at Associates, OrbiMed (Manhattan) days prior to the bid submission date. To New York’s largest publicly held companies Advisors (Manhattan), ● CDP Capital-Technology make inquiries, contact Kristina Healthfirst signed a lease to expand its filed with the Securities and Exchange Ventures, Perceptive LeGrand at (718) 999-1234 or space by 60,000 square feet at 100 Church Commission by executives and major Advisors (Manhattan), [email protected]. St. Last year, the firm signed a 20-year shareholders. Listings are in order of Baker Brothers Investments lease for 170,000 square feet.The firm transaction value.The information was (Manhattan), Great Point ● Health and Hospitals Corp. will expand to the entire 14th floor. Jones obtained from Thomson Reuters. Partners, QVT Financial Seeks competitive sealed bids by 3 p.m. Lang LaSalle’s Daoud Awad, Bill Peters (Manhattan), Visium Asset on Jan. 24 for replacement of refrigerated and Derek Trulson represented the ● C.R. Bard Inc. (BCR) Management (Manhattan)/ Inhibitex Inc. air dryers. For site/tour visits at tenant.The landlord, SL Green Realty Timothy M. Ring, chairman and chief Gouverneur Hospital, please call Russ Corp., was represented by Newmark executive, exercised options on 50,000 Ruben Cos. (Manhattan)/ $112.0 AEW Capital Management SB M&A 1 Exeter Plaza Carbone at (212) 238-7022.To make Knight Frank’s Jonathan Fanuzzi, Lance shares of common stock at $30.51 on in Boston inquiries, contact Starr Kollore at Korman, Jimmy Kuhn, Hal Stein and Dec. 23, in a transaction worth (212) 318-4260 or Brian Waterman.The asking rent was in $1,525,500. On the same day, he sold Not disclosed/World $43.0 GCP Capital Partners (Manhattan), FB M&A Trade Group Ltd. Management of World Trade Group [email protected]. the $30s per square foot. 50,000 shares of common stock at $84.45, Ltd. in a transaction worth $4,222,355. He ● Tian Nian Health Management has now directly holds 271,459 shares. Lehman Brothers $30.3 Building and Land Technology Corp. SB M&A Holdings Inc., asset REAL ESTATE DEALS signed an 11-year lease for 9,200 square management arm feet at Flushing Plaza, 41-61 Kissena ● Verizon Communications (VZ) (Manhattan)/695 Companies that would like to have details Blvd., Flushing, Queens. The firm will Thomas J. Tauke, executive vice East Main Street of their recent transactions appear in these occupy space on the concourse level. The president, public affairs, policy and TGM Associates $28.0 MG Properties Group SB M&A listings should email descriptions to landlord, Muss Development, was communications, exercised options on (Manhattan)/ [email protected], with “Real represented in-house by Ross Spitalnick. 63,077 shares of common stock at Barham Villas estate transaction” in the subject line, or The asking rent was in the high $30s to $35.81 on Dec. 23, in a transaction Apartments enter them online at crainsnewyork.com/ low $40s per square foot. worth $2,258,787. On the same day, he Palatine Capital Partners $14.7 Bluerock Real Estate (Manhattan) SB M&A submitadeal. Deals are listed in order of sold 63,077 shares of common stock at (Manhattan)/320-unit square footage. RETAIL $39.50, in a transaction worth apartment complex in ● Superdry signed a lease for 14,000 $2,491,542. He now directly holds south Nashville COMMERCIAL square feet at 729 Seventh Ave. The firm 6,894 shares. Not disclosed/ $12.0 Investor Growth Capital GCI ● The New York City Law Department will occupy space on the ground, second Maxymiser Ltd. (Manhattan), Pentech is renewing its lease for 280,000 square and basement floors. William Crisp, of ● Overseas Shipholding Group (OSG) Ventures feet at 100 Church St. The tenant was William Crisp Realty, represented the Diane Recanati, stockholder, purchased Oberon Media Inc. $6.9 TransGaming Inc. SB M&A represented by CBRE Group Inc. The tenant, while CityVest Realty Corp.’s 125,015 shares of common stock at (Manhattan)/ landlord, SL Green Realty Corp., was Mark Stempel represented the property’s $12.30 on Dec. 28, in a transaction Oberon Media Inc., iTV and connected TV represented by Newmark Knight Frank’s controller, the Reise Organization.The worth $1,537,685. She now indirectly division Jonathan Fanuzzi, Lance Korman, asking rent was $600 per square foot. holds 644,890 shares. Jimmy Kuhn, Hal Stein and Brian Selected deals announced for the week ended Jan. 8 involving companies in metro New York. ● FB M&A: Financial buyer M&A represents a minority or majority acquisition of existing Waterman. The asking rent was in the Gannett Co. signed a five-year sublease Michael A. Recanati, stockholder, sold shares of a company with the participation of a financial buyer. GCI: Growth capital investment $30s per square foot. for 23,000 square fee at 1440 Broadway. 125,015 shares of common stock at represents new money invested in a company for a minority stake. SB M&A: Strategic buyer The tenant was represented by Robert $12.30 on Dec. 28, in a transaction M&A represents a minority or majority acquisition of existing shares of a company without the ● Guggenheim Partners signed a 15-year Hill, David Hollander and Michael worth $1,537,685. He now indirectly participation of a financial buyer. source: capitaliq lease for 186,000 square feet at 330 Laginestra of CBRE Group Inc.The holds 16,368 shares. Ⅲ

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24 | Crain’s New York Business | January 16, 2012

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REAL ESTA TE INSIDE 2012 forecasts from six top industry executives PAGE 30 Multilevel stores gain traction as retailers eye more space for less rent PAGE 34 Top property sales in 2011 PAGE 36

LIVING TESTAMENT: Century 21 broker Gamal Hasan is using a picture of Green- Wood Cemetery’s trolley in ads to help boost neighborhood real estate. buck ennis Back from the dead New tours and educational programs are drawing crowds of onlookers to NY’s big cemeteries and turning erstwhile neighborhood liabilities into assets. All-star lineup runs from Herman Melville to Duke Ellington BY ANNE FIELD

FOR ALMOST A DECADE, Rambling House, an Irish pub and restaurant on Tara Carty. Katonah Avenue in the Bronx, has done a healthy business catering to the needs Similarly surprising phenomena are being reported in the vicinity of two of of a lively local crowd. Only recently has a new crop of patrons begun to pop up. New York’s other famous burial places known for their meticulously manicured They are people drawn by the tours and educational programs offered half a grounds,museum-quality monuments and permanent residents including some dozen blocks down the street at the neighborhood’s biggest (400 acres) and oldest of history’s biggest names. All three, including Green-Wood in Brooklyn and (148 years) business, Woodlawn Cemetery. It’s also the only one that ranks as a Moravian on Staten Island, are working hard to draw crowds and are achieving National Historic Landmark. results that are already beginning to have an impact not just at the gate but in the “There’s a steady stream of customers we’ve never seen before,” said manager See REBORN on Page 28

January 16, 2012 | Crain’s New York Business | 27 20120116-NEWS--0028-NAT-CCI-CN_-- 1/12/2012 11:44 AM Page 1

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nal destination to a tourist draw ca- think about these longtime neigh- pable of a totally new feat: attract- borhood dead zones. In a telling ex- Reborn graveyards draw crowds ing repeat business. Today, it offers ample, two blocks from Green- everything from live dance to film Wood at the office of Century 21 screenings and book signings, at Block & Lot Real Estate, broker Continued from Page 27 nority leader of the City Council. “In 50 years,we realized we would prices ranging from $10 to $35 for Gamal Hasan is actually using a pic- receipts of some local businesses and So far, the biggest beneficiaries, no longer have any graves left to sell,” nonmembers—those who don’t ture of the cemetery’s cheerful green the perceptions of neighbors and however, have been the cemeteries said Jeffrey Richman,Green-Wood’s pay $30 in annual dues. Green- trolley in ads. Most people, he not- visitors alike. themselves, led by the most aggres- official, salaried historian. Wood Cemetery President Rich- ed, associate Green-Wood with its “I’d hope the folks who visit sive of the lot, Green-Wood. In ard Moylan predicts the events will picturesque grounds, but the new Moravian take a hop, skip and jump 1998, its directors founded the non- Repeat business start becoming profitable in the events are helping to win still more down to New Dorp Lane, where profit Green-Wood Historic Fund Since then, the cemetery’s man- “near future.” converts. there are all kinds of shops,” said to forge a new life for a business agement has aimed to do nothing The programs already are begin- “They are definitely a plus,” he James Oddo, R-Staten Island, mi- whose old business is slowly dying. less than transform the site from fi- ning to change the way some people said. Ⅲ

WOODLAWN CEMETERY LOCATION Woodlawn, Bronx ACRES 400 FOUNDED 1863 SUBWAY 4 train to Jerome Avenue PERMANENT POPULATION More than 300,000 BOLDFACE NAMES Nellie Bly, Duke Ellington, R.H. Macy, Bat Masterson, Herman Melville, Joseph Pulitzer, Elizabeth Cady PICTURESQUE: Stanton, F.W. Woolworth The Scorsese DRAWING CARDS Six of the 100 Great Trees of New York, Jazz mausoleum in Moravian MORE BULLISH Corner, mausoleums by Cass Gilbert, Sir Edwin Luytens Cemetery. THAN BEARISH: RECENT HITS Easter egg roll, concert of Ellington music, Migrants Attendance at Green- of Woodlawn early-morning bird walk, Royals and Imperials tour Wood totaled nearly 40,000 last year. of graves of nobility oodlawn’s emergence from decades spent in the shadows of its predominantly Irish MORAVIAN CEMETERY neighborhood holds real promise for nearby Wbusinesses, according to Tracy Shelton, ex- LOCATION New Dorp/Todt Hill, Staten Island ecutive director of the Kingsbridge ACRES 113 GREEN-WOOD CEMETERY Riverdale Van Cortlandt Development Corp. In a first, just last month the cemetery participated in a lo- FOUNDED 1720 LOCATION Sunset Park, Brooklyn cal business fair, sponsored by the newly formed Woodlawn TRANSPORTATION Ferry to St. George, S74 or S76 bus to ACRES 478 Heights Merchants Association, which Ms. Shelton helped Richmond Road/Todt Hill Road organize. During the event, a rented trolley whisked visitors PERMANENT POPULATION 65,000 FOUNDED 1838 from the cemetery’s holiday concert down the street to local SUBWAY R train to 25th Street shops and restaurants. BOLDFACE NAMES Alice Austen, Paul Castellano, Cornelius Vanderbilt I, II and IV, Civil War Gen. Stephen H. Weed, John PERMANENT POPULATION 560,000 “Any time you bring more people to a community, the area is likely to benefit,” she said. Eberhard Faber BOLDFACE NAMES Henry Ward Beecher, Leonard Bernstein, Since taking over as executive director of the 13-year-old DRAWING CARDS Original Vanderbilt mausoleum, two lakes, Horace Greeley, Samuel Morse, F.A.O. Schwarz, William “Boss” Friends of the Woodlawn Cemetery two years ago, Brian Sahd three 19th-century bridges, 11 miles of winding pathways, views Tweed has been in charge of attracting more visitors. He already has of lower New York Bay DRAWING CARDS Panoramic views from Brooklyn’s highest upped the number of events to 22 a year from 16 previously, RECENT HITS Weekend walking tours, private tours during the point, rolling hills, four glacial ponds, mausoleums by Stanford kicking off each year with the Easter egg roll in April and run- week White ning through December’s holiday concert. RECENT HITS Lecture with author/Green-Wood admirer Paul Increasingly, he partners with others to host such events as bout seven years ago, Richard Simpson, a retired Auster, concert by Blues Project founder Danny Kalb, screening October’s concert and panel discussion on singer and perma- chauffeur and Staten Island historian by avoca- of a film about artist Jean-Michel Basquiat and visit to his grave nent Woodlawn resident Celia Cruz, which was co-sponsored tion,started researching the lives of such residents by the Bronx Musical Heritage Center and drew about 150 Aas Robert Crooks Stanley,who in 1905 had a hand ver a decade’s worth of hard work is beginning to people.There also are 7 a.m.bird walks presented with the New in the invention of Monel, the precursor to stain- pay off. Attendance at Green-Wood Cemetery York City Audubon Society. Overall attendance in 2011 is es- less steel; and John Eberhard Faber, of the eponymous pencil is estimated to have totaled nearly 40,000 in timated to have topped 3,000, six times the level of a decade company. O2011, more than 10 times the traffic of a decade ago, and it is still swelling. “I realized they all had a common denominator:They were earlier, according to Green-Wood’s historian, One of the most popular destinations is the Jazz Corner.Ac- all resting in Moravian Cemetery,” Mr. Simpson said. After Jeffrey Richman. He attributes much of the gain to the shift in cording to official Woodlawn historian Sue Olsen, after Duke hosting a few informal tours,he persuaded the cemetery’s man- recent years from merely conducting tours to marketing and Ellington was interred there in 1974, jazz greats ranging from agement to allow him to do more formal sessions. hosting events. More than 1,000 people attended last spring’s Miles Davis to Illinois Jacquet bought plots close by. Another Today,he hosts 90-minute tours of the graveyard,set on the Memorial Day extravaganza. It featured a Civil War re- favorite visiting spot: Herman Melville’s grave, where visitors edge of Todt Hill, the island’s most picturesque and affluent enactment, a brass band and a nighttime procession to place often leave pens and even manuscripts. Ⅲ area, with views out across the harbor. His spring and fall ren- luminaries on the graves of the cemetery’s 4,000 Civil War vet- ditions on Sundays attract about 20 people,who each pay a $10 erans. Similarly, a program in October billed as “An afternoon fee.He also does private gigs during the week for organizations with best-selling [Brooklyn] author Paul Auster” was sold MUSICAL REST: and families. Among them is a special tour highlighting edu- out—at $20 for nonmembers, including a trolley ride—draw- Woodlawn’s Jazz cators buried at Moravian and another of doctors’ tombs. He’s ing 130 people. Corner is a hot now putting together a tour of grave sites of turn-of-the-last- drawing card. “The first day I came, I was amazed by the place,” said Mr. century luminaries, including John Carrère, co-designer of the Richman.Thirty years later, he leads tours that range from vis- New York Public Library. its to the graves of Roosevelt family members to nighttime trips “This cemetery is taking on a new life of its own,” said Mr. inside the Catacombs, a former quarry turned into burial Simpson, pointing to attendance, which ballooned to 1,200 vaults, accompanied by accordion music. last year from nothing six years ago—despite a decidedly low- That is all music to the ears of Donald Gizzi, chief financial key marketing effort. officer of Aladdin Bakery.He is hoping to capture some of that That success also comes despite the exit of some of Mora- traffic at the new store the bakery is opening just across from vian’s most famous residents,the Vanderbilts.Their 1865 mau- Green-Wood later this year. He is also looking forward to the soleum, with room for 100, still stands. For security reasons, projected 2013 opening of the cemetery’s new visitor center in however, their mortal remains were shifted 18 years later to a a landmarked 1895 greenhouse bought for $1.5 million. mausoleum patterned on a French Romanesque church on 14 “We’re hoping it increases street traffic and draws people to acres of private land adjacent to the cemetery,which were land- the area,” he said. Ⅲ scaped by Frederick Law Olmsted of Central Park fame. Ⅲ

28 | Crain’s New York Business | January 16, 2012 Project1:fp template.qxd 1/6/12 4:07 PM Page 1 Thank You. We are grateful to our tenants and the New York brokerage community for your support during the past year.

We especially acknowledge the following individuals and firms with whom we worked so closely and successfully in 2011:

James Ackerson Pamela Klyn Philip Silverstein CB RICHARD ELLIS JONES LANG LASALLE NAI GLOBAL Allyson Bowen Matthew Leon Scott Sloves STUDLEY INC. NEWMARK KNIGHT FRANK CB RICHARD ELLIS Kelly Broderick Warren Newcorn Tara Stacom CUSHMAN & WAKEFIELD INC. NEWCORN REALTY CUSHMAN & WAKEFIELD INC. Jonathan Burke Key Otomo Alan Stein J.W. BURKE & COMPANY STUDLEY INC. CUSHMAN & WAKEFIELD INC. Howard Cross Tony Park Mary Ann Tighe COLLIERS INTERNATIONAL PD PROPERTIES CB RICHARD ELLIS David Firestein Ramneek Rikhy Greg Tosko NORTHWEST ATLANTIC REAL ESTATE CB RICHARD ELLIS CB RICHARD ELLIS Kurt Handschumacher Craig Reicher Greg Wang STUDLEY INC. CB RICHARD ELLIS COLLIERS INTERNATIONAL Martin Horner Andrew Ross Philip Weiss JONES LANG LASALLE CUSHMAN & WAKEFIELD INC. EXPONENTIAL REAL ESTATE Jared Horowitz Barry Sanet Barry Zeller CUSHMAN & WAKEFIELD INC. LEE & ASSOCIATES NYC CUSHMAN & WAKEFIELD INC. Ira Schuman STUDLEY INC.

Douglas Durst Jonathan Durst

Member ® www.durst.org REAL ESTATE BOARD OF NEW YORK 20120116-NEWS--0030-NAT-CCI-CN_-- 1/12/2012 11:45 AM Page 1

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Q: After a great start Q: With leasing Q: Financing Q: The hottest Q: Some say the in 2011, office slowing, what acquisitions, market in recent rebound in the leasing slowed in happens to office much less quarters has been price of office & the second half. rents? construction, has midtown south. buildings was QA Is the been tough. Will it Do you expect premature. Where postrecession get any easier? that to continue or do you see prices Forecasts from bounce over? do you see other going from here? six New York submarkets real estate experts heating up?

It’s not that activity slowed, but Office rents are much more a We are currently in a Following Google’s purchase of What we are finding is simply that the type of activity changed. reflection of absorption than marketplace where mortgage 111 Eighth Ave., the area is that all pricing does not rise We refer to activity as being activity. In 2011, we saw rates are fairly inexpensive from being referred to as Silicon with the tides. Some purchasers relocations and expansions, and positive absorption in all three a historical perspective. But for Alley.This market is not only made strategic buys at the we exclude renewals. In the first markets. While the absorption many owners, the difficulty has driven by startup Internet bottom of the economic cycle, half of the year, we saw a strong in midtown has been small, it been the debt-to-equity ratios companies, but is starting to see and as a result made double- amount of relocation and has been significant in required to get that financing. an influx of traditional digit returns. Today’s buyer expansions. In the second half, midtown south and downtown. Today’s owners are required to corporate tenants. When must find product in high- PETER that droppped, but we did see a As a result, midtown south and put up far more equity than companies like Infor take space growth areas to make similar TURCHIN big pickup in renewals. Some of downtown have seen dramatic they have been required to do at 641 Sixth Ave., or Hewlett- Executive vice returns rather than simply president, the largest transactions in the drops in availability. I expect in the past. Packard at 556 W. 22nd St., relying on a rising economy. CBRE second half were renewals. office rents to follow. that’s a very positive trend.

The strong first half of the year Office rents remain in a modest Financing is available for Activity there has been driven by Prices rebounded based on was the result of pent-up upward trend. Every market conservatively underwritten technology, and it looks like forecasted rent growth. Rents demand, firms locking in rents has experienced an increase in and solid core deals, but it will that growth will continue. The spiked for a period, but the pace at perceived cyclical lows, and asking rents, particularly for continue to be more challenge is finding space, since of growth has slowed due to the growth, as more than 10,000 prime space. Rents tend to be challenging for assets with the vacancy rate there is around sovereign debt crisis. With office-using jobs were created. driven by the vacancy rate more higher vacancy or significant 6%. This has pushed some more conservative rent-growth GLENN From July through October, we than the level of leasing, and rollover. On transactions over a tenants to look elsewhere. expectations, prices are going to RUFRANO added 2,900 jobs, paced by Manhattan has the lowest few hundred million dollars, Given pressures on some be flat until some of the Chief demand from the technology industries, it wouldn’t surprise uncertainty is taken out of the executive, vacancy rate of any large central investors will partner up to sector, which is providing some business district in the nation. limit exposure to a single me to see price-sensitive market. The name of the game Cushman & tenants seek space downtown last year was recaps, and we Wakefield offset to the slowdown in other transaction. sectors. or in fringe midtown locations. expect the same in 2012.

Technology The slowdown is attributable to We might see a little more If property fundamentals hold , media, consulting Deals in the latter half were uncertainty about the strength aggressive dealmaking. But steady and hopefully improve, and fashion are doing well. at firm prices but not at of the economy. Leasing has some submarkets are pretty then yes, but we have to be That should give midtown significantly higher pricing dropped well below long-term tight. Midtown south has watchful. In the third quarter, south continued strength. But than in the first half. If the averages, as tenants delay availability rates well below risk spreads on debt increased we are seeing movement by business outlook improves, MICHAEL those firms up into midtown then significantly higher rents T. COHEN decision-making. What we are 10%, so there might not be by over 100 basis points in seeing is not just a normal much, if any, downward weeks. But with Europe north and a few examples can be put into the pro forma President, downtown. The question for analysis, resulting in higher tristate region, cyclical event. Some people are pressure. Meanwhile, the Plaza avoiding a breakup of the concerned that Europe’s district has little tower space, eurozone and the U.S. staying 2012 and beyond concerns the market prices. For the moment, Colliers large financial institutions. Will International struggles, with its heavy debt and leasing is already aggressive on its path of modest growth, I think that we will remain at burdens, might be just around downtown, so again I wouldn’t we should see low interest rates their businesses stabilize along roughly current valuations. the corner for us in the U.S. expect to see significant drops. and good availability of funds. with head counts?

I believe that the market has Office rents in Manhattan will I don’t believe the market will It continues to be the city’s As the rental market continues been bumping along the continue to tick up, and change all that much in 2012. strongest market due to tech, to strengthen, we think the bottom through all of 2011. concessions will come down Most institutions are risk- fashion, media and enter- pricing of office buildings will New York’s office market is still this year. New York remains a averse, and I think their tainment firms all looking for continue to grow. We believe driven by employment growth, thriving job market, and requirements for equity versus less-institutional space. The that premium pricing will and the rebound has been slow employment opportunities will debt will remain much the emerging market to watch will continue on trophy assets MITCHELL and steady, progressing in the only get better as the economy same in 2012. There is plenty KONSKER be midtown west, near 11 throughout the year as vacancy right direction. I am bullish on Vice improves. Technology, fashion, of liquidity in the market for Times Square and Hudson continues to drop. There is chairman, 2012. The market will continue media and entertainment acquisitions, however, but that Yards, due to the quality of new plenty of liquidity, putting NY tristate to get tighter due to limited companies have supplemented is predicated on the purchase of construction that provides for pressure on pricing and the rate region, Jones new construction. the lack of growth from the income-producing properties more efficient space, and lower of return, and that will continue Lang LaSalle financial industry this past year. versus speculative construction. operating costs. through 2012.

It is clear that, although we are Generally, slowing demand The downgrading of U.S. debt Midtown south has great In Manhattan we saw an trending positively, the market should exert downward had caused a flight to safety, fundamentals. There are a few appreciation rate per square is bouncing up and down in pressure on rents. However, I which drove long-term interest new buildings planned for this foot well into the double digits concert with the economy. In will leave prognostications rates lower. That widened submarket that will be exciting in 2011. Jumps of that the building-sales market, we about office rents to my margins for lenders, giving them for this area. Retail is also very magnitude are not entirely saw a strong first half and then industry colleagues who are more motivation to lend. But strong, adding to both the mix unexpected given the drops we ROBERT a setback in the dollar volume leasing brokers. risk aversion diverted capital of tenancy and the allure of the saw from peak levels. The KNAKAL of sales since then, as the debt- area for residents and office combination of excessive Chairman, away from riskier investments ceiling debate and the Massey Knakal like commercial mortgage- tenants. Other very strong demand, low supply and low Realty Services downgrading of our long-term backed securities, which has submarkets are the interest rates is exerting debt caused many to question hurt the number of very large meatpacking district and the significant upward pressure on where the markets were headed. transactions in the second half. district around the High Line. office building values.

The market saw another 5 Office rents have increased The financial markets have been The strength of midtown south The price of office buildings is a million square feet absorbed in consistently over the past six looking to manage the risk has been consistent with the reflection of numerous factors, 2011. That should be sustain- quarters, coupled with solid profile of real estate and reduce positive movement of the including interest rates, able, as monetary and fiscal drops in the availability rate. volatility through interest-rate market overall. Downtown and inflation and rents. As the policies are in place to ease As it tightens, the rate of swaps. With changes proposed midtown have both performed market for borrowing remains market conditions. Monetary for the CMBS market and the well, and as part of the recovery competitive, and inflation has BARRY leasing may slow as a result of policy has rates at near-zero balance-sheet accounting cycle, all markets are rotational. returned modestly, rents have GOSIN increased prices. If levels. The secondary emphasis recommended by authorities, a CEO, employment continues to As the market tightens in moved upward. These market will now be on fiscal demands Newmark improve, this will put added next step would be hedging midtown south, we expect the conditions are forward-looking Knight Frank for both the EU and U.S. pressure on rents, as growth in rents. This will be a step toward conditions to continue in the market price for office policymaking. employment is needed in order integrating the financial throughout the other buildings, and are consistent on to sustain the market. markets with real estate. submarkets. a risk-adjusted basis.

30 | Crain’s New York Business | January 16, 2012

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TITLE: President of Rubenstein Associates Inc. Simon Ziff AWARD: Louis Group celebrates leaders MR. RUBENSTEIN has run his epony- Smadbeck Broker mous PR agency since founding it Recognition Award 57 years ago and still personally ad- TITLE: President of the The Real Estate Board of New York will honor these industry River Park, and founder of one of vises key clients of the 200-person Ackman-Ziff Real figures at its annual banquet on Jan. 19. New York state’s largest organic company. He sits on the executive Estate Group farms. committees of REBNY and NYC & Company,as well as the Association AS PRESIDENT of the Ackman-Ziff Douglas D. Organization for a Better New York, which he Real Estate Group since 1995, Mr. MR. DURST, a graduate of the Univer- Howard J. helped found. He is also a member Ziff has arranged more than $20 bil- Durst sity of California at Berkeley, is part of the City University of New York’s lion of real estate related financings AWARD: The Bernard of the third generation of the fami- Rubenstein Business Leadership Council. A and has built relationships with key H. Mendik Lifetime ly to lead the Durst Organization. AWARD: Harry B. Phi Beta Kappa graduate of the capital sources. A graduate of Penn- Leadership in Real He is a director of REBNY and sev- Helmsley University of Pennsylvania, he is a sylvania State University, he was the Estate eral other organizations. He is also Distinguished former assistant counsel to the first-ever winner of REBNY’s TITLE: Chairman of the Durst co-chair of Friends of the Hudson New Yorker House Judiciary Committee. awards for Most Promising Com- mercial Salesperson and a six-time winner of its Most Ingenious Deal Award. He is also a REBNY direc- tor and teacher of a REBNY course. Gerard V. Behind every successful Building Owner there is a host Schumm of incredibly talented Brokers and steadfast Tenants. AWARD: George M. Brooker Manage- Jack Resnick & Sons thanks the following Firms and the Brokers who represented them, ment Executive of as well as our existing Tenants who renewed their commitments to New York City in 2011. the Year TITLE: Executive vice president of RFR LT Burger Europa Café Standard Security Life Insurance Realty 8 WEST 40th STREET 199 WATER STREET 485 MADISON AVENUE represented by: represented by: Matt Cohen of The Lansco Corporation Ruby 21 Jewelry, Inc. Daniel Horowitz & Jeffrey Peck of AFTER BEGINNING his career with the 205 WEST 57th STREET Studley Inc. RP Management, LLC Uris Organization 40 years ago and 110 EAST 59th STREET Hyper Island, Inc. Beech Hill Securities working for a series of firms, Mr. represented by: 250 HUDSON STREET 880 THIRD AVENUE Michael L. Goldman & Daniel Posey of represented by: represented by: Schumm joined RFR Realty two Studley, Inc. Trisha Jerry & Randy Kornblatt of Lisa Kiehl of Jones Lang LaSalle years ago as an executive vice presi- Sinvin Realty, LLC RadioShack Corporation Polarn O. Pyret aka. PO.P dent overseeing property manage- 205 WEST 57th STREET Don Allen Studios, Inc. 200 CHAMBERS STREET ment, construction and leasing. A 133 EAST 58th STREET represented by: graduate of St. Francis College, he is Cardio Prevention & Therapeutics of NY represented by: Robin Abrams of 133 EAST 58th STREET William O. Berkis, Jr. of The Lansco Corporation a former chair of REBNY’s board, represented by: Winoker Realty Co. and 2006 recipient of its Commercial Stanley Piesh of Prime Manhattan Realty HHK Sushi & Tea, Inc. Cornell University 170 WEST 23rd STREET Management Leadership Award. American Express 422 EAST 72nd STREET represented by: Travel Related Services represented by: Morris Sabbagh of 250 HUDSON STREET Paul Wexler of Kassin Sabbagh Realty represented by: Corcoran Wexler Healthcare Properties Pamela Michael Liss & Bruce Surry of Eve Bari NYC CB Richard Ellis, Inc. Kingsland Capital Management, LLC 205 WEST 57th STREET 485 MADISON AVENUE Liebman Metropolitan Obstetrics & Gynecology represented by: Motion Picture Arts Gallery AWARD: Kenneth R. 133 EAST 58th STREET Donald A. Direnzo, Donald A. Direnzo, Jr. & 133 EAST 58th STREET Adam Rappaport of Cushman & Wakefi eld, Inc. Gerrety Humanitarian Europa Café Cosmetic Prosthodontics 205 WEST 57th STREET Back Into Balance, LLC 133 EAST 58th STREET Title: Chief executive 133 East 58th Street represented by: of the Corcoran Group PJ Carney’s represented by: Jeffrey Symmons of 205 WEST 57th STREET Lance Weitz of JFW Realty Corp. The Lawrence Group, LLC SINCE 2000,Ms.Liebman has provid- TED Conferences, LLC Egon Zehnder International, Inc. Bar Basso, Inc. ed strategic direction to the compa- 250 Hudson Street 485 Madison Avenue 1755 BROADWAY represented by: ny,overseeing its 40 managers, 2,100 Alan G. Schwartz & Neil B. Schwartz employees and the acquisition of sev- of Glen Equities, Ltd. eral other firms, including Citi- Habitats and the Sunshine Group.A University of Massachusetts gradu- ate, she is a long-term supporter of charitable organizations and a Jack Resnick & Sons founding board member of the Wipe Owners and Builders Since 1928 110 East 59th Street Out Leukemia Forever Foundation. New York, NY 10022 212-421-1300 www.resnicknyc.com David E. Green AWARD: Young Real Estate Man of the Year TITLE: Executive director of Cushman & Wakefield MR. GREEN has worked for landlords ranging from Harry Macklowe to Vornado Realty Trust over the last 15 years. In his current post, he has returned to brokerages, advising Lazard Frères on its 450,000-

Proud to be a member of square-foot lease renewal and on the repositioning of 2 Park Ave. to ten- ants such as Kate Spade.The SUNY Binghamton graduate serves on several REBNY committees. Ⅲ

32 | Crain’s New York Business | January 16, 2012

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REPORT REAL ESTA TE

FLOOR MODEL: Forever 21 is one of a number of Retailers go to new levels shops that have gone to multiple to save on high rents levels.

Stewart that opened on lower to $300 range. Seattle-based Nord- Big-name stores Broadway in 1846, most retailers strom Inc. leased a mere 30 feet of find multifloor have shunned the concept in favor of street-level frontage along East more customer-friendly single- 14th Street for its off-price Nord- shopping can boost floor layouts. But recent years have strom Rack unit,but the vast bulk of their bottom line seen a marked rise in multilevel spe- the 32,000-square-foot store is cialty retailing, with such stores down in the basement. popping up in locations that would While the recession pummeled BY STEVE GARMHAUSEN have been surprising not long ago. office rents, retail rents have proved “Specialty retailers taking multi- far more resilient, making it even Retailers eager to make a huge ple levels is the result of high rents, more imperative for shop owners to splash in New York without going little space and bigger boxes adapt- find ways to economize here. With broke in the process have a new ing to urban retail,” said Faith Hope the discount for second-floor space poster child: giant fast-fashion re- Consolo, chairman of the retail typically about 50% less compared tailer Uniqlo. At 666 Fifth Ave., the group at Prudential Douglas Elli- with street-level rates, and base-

Japanese outfit is reportedly paying man Real Estate. ment acreage renting for as much as buck ennis some of the highest rents in the 75% less,multilevel retailing packs a world, more than $2,000 per square New norm powerful appeal, if it can be made Such things add to the cost of the world,” said Gene Spiegelman, ex- foot for 6,000 square feet on the Just two doors down from to work. space and eat up the square footage, ecutive vice president at Cushman ground floor. Uniqlo in the same Fifth Avenue From a logistics viewpoint,oper- but they can still be worth the sacri- & Wakefield. “It allows a brand to But because the other 93% of the building,Hollister,a brand of Aber- ating a multilevel store in Manhat- fice in a high-volume setting like really put their product out in front store’s 89,000 total square feet are crombie & Fitch,opened a two-lev- tan is a far cry from operating one New York. of a diverse and dense group of either in the basement or on floors el outpost in 2010,albeit on a small- built in a cornfield in Iowa, noted worldwide buyers.” two and three, where the rent is far er scale—just 15,500 square feet. Robert Yuricic, studio director at High-profile location What makes that effort afford- lower, the overall figure becomes far Over in the city’s second-priciest re- GreenbergFarrow, a designer of Uniqlo’s Fifth Avenue store—a able is Uniqlo’s ability to bring down more palatable. tail precinct, Times Square, four- malls in New York ranging from sleek three-story expanse of glass at average rents to reasonable levels by “The bigger you go,and the more digit-per-square-foot rents and Harlem’s East River Plaza to the the base of a drab block—is a very renting multiple floors of the build- floors you take, it doesn’t matter as heavy pedestrian traffic have helped Gateway Center at the Bronx Ter- large series of windows that look out ing.Similar logic also applies to oth- much what you pay on the ground make multilevel the new norm. minal Market. onto an avenue that draws 48 million ers eager to get more bang for the floor,”said Andrew Goldberg,exec- There, Aéropostale, American Ap- “From a customer standpoint, it visitors a year, according to Cush- buck in far more affordable loca- utive vice president of CB Richard parel, American Eagle, Forever 21 really is about the ease with which man & Wakefield Inc. For an outfit tions. Examples range from the Ellis’ New York Tri-State Region and The Gap all boast multiple you can move about the space,” he that is Japan’s answer to The Gap or two-story Staples that opened last Retail Brokerage Services Group. floors—as does the pioneer of the said, pointing out that the typical H&M (which also has a multifloor summer on Third Avenue and East “And you’re still going to generate concept in the area, Toys “R” Us. customer will go from one floor to space on Fifth),but which was virtu- 43rd Street, to the three-level home huge volume and visibility.” One of the most extreme exam- another “without thinking too ally unknown here, such a high-pro- of the American Institute of Archi- While multilevel retailing in ples of multifloor retailing is at much about it.”But add a third floor, file location is perfect. tects’ Center for Architecture on New York dates back to the city’s Union Square, where per-square- and shoppers will expect express el- “Fifth Avenue is recognized as LaGuardia Place just below Wash- first department store, the A.T. foot retail rents average in the $250 evators and escalators, he explained. one of the top locations in the ington Square. Ⅲ

Deals Plus Top auto insurer sive west Chelsea property. DOWNTOWN Mcgarrybowen, a fast-rising ad LOOKING UP opts for Brooklyn agency, added 47,100 square feet there, bringing its total to 177,100 Year-over-year changes for American Transit Insurance Co. is square feet. Under the new deal, it Townhouse sales commercial office space as of ditching Manhattan for downtown will lease space for 10 years.The ask- the fourth quarter of 2011. Brooklyn.The property and casual- ing rent was about $45 a square foot. ty insurance carrier, which special- All the leases end at the same time. smash records VACANCY RATE izes in commercial automobiles, has The agency needed additional sublet nearly 77,000 square feet at space, said David Hollander, a 1 MetroTech Center from JPMorgan CBRE broker who represented the uxury condos priced at $4 million and up weren’t -1.9% Chase & Co. for 12 years, according firm with colleague Sacha Zarba. to sources. The asking rent in the Luckily, the Harry Fox Agency, the only things flying off the shelf last year. RENTS Further upmarket, sales of Upper West Side building for space direct from land- which works with the music indus- lord Forest City Ratner Cos. is re- try, was willing to move. Harry Fox single-family townhouses costing more than $10 portedly $30 per square foot. had been subleasing the space from million also hit all-time highs. In the previous five +2.8% Brian Weld of Cassidy Turley, the building’s largest tenant, Tom- years, no more than two townhouses at that stratospheric price SPACE LEASED who represented American Transit my Hilfiger USA, which returned it L Insurance, declined to comment. to RXR as part of the deal. ever traded hands in any given year, according to Wolf Jones Lang LaSalle, RXR was repre- Jakubowski, a managing director at Brown Harris Stevens, who represented sented in-house by who tracks townhouse sale activity in Manhattan. Last year +96.2% JPMorgan, could William Elder, man- there were four such deals, and even more surprisingly, deals Source: Cushman & Wakefield Inc. not be reached for aging director of the comment. firm’s New York City for two other houses were already in Why are there so many coming Currently, the division. contract entering the new year, said on the market now? A closer look at bought a vacant 10-unit property on company is located Harry Fox will Mr. Jakubowski. the recent sales reveals that the West 74th Street for $4.75 million at 330 W. 34th St. It move to 37,000 square “It’s an unprecedented number houses were formerly six- to 10-unit in 2007 and has since transformed it will move into its feet at 40 Wall St., for the neighborhood,” he added. multifamily properties bought be- into an 8,000-square-foot single- new space in April. Starrett-Lehigh Building which is owned by the Some say the sudden surge large- fore the recession, when financing family house. It is now in contract —amanda fung Trump Organization. ly owes to a surprising increase in the for such speculative projects was for more than $14 million, accord- The asking rent for the 13.5-year number of such pricey houses hitting easy to get and prices were soaring. ing to Mr. Jakubowski. deal was $34 a square foot. Harry the market. As of last week, half a But since it takes at least two years “Money follows money,”he said. Ad agency expands Fox was represented by Greg Taubin dozen such properties in the neigh- to convert them to single-family “Developers are now seeing house at Starrett-Lehigh of Studley Inc. Jared Horowitz and borhood were on the block with an houses, they have only recently sales break $10 million, so it’s be- Jeffrey Lichtenberg of Cushman & asking price in excess of $10 million, started to come on the market. come less speculative.” There’s a lot of activity at the Starrett- Wakefield Inc. represented Trump. according to Streeteasy.com. For instance, one developer —amanda fung Lehigh Building, RXR Realty’s mas- —theresa agovino

34 | Crain’s New York Business | January 16, 2012 Project1:fp template.qxd 1/6/12 4:12 PM Page 1

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REPORT REAL ESTA TE Real Capital Analytics’ Top Property Sales Biggest commercial transactions in NYC in 2011, ranked by price

Sq. ft. or Address/ # of units/ property type/ Transaction price price per Interest 100% value Close submarket (in millions)1 sq. ft. or unit conveyed (in millions) date Buyer Seller TOP FOUR SALES 280 Park Ave. $1,098.9 1,179,000 99.0% $1,110.0 5/15 SL Green/Vornado Broadway Partners/Investcorp 1 Office $941 Midtown East 601 W. 26th St. (Starrett Lehigh Building) $920.0 2,309,739 100.0% $920.0 7/30 RXR Realty/Public Sector Pension Shorenstein Properties/Mark 2 Office $398 Investment Board (PSPIB) Karasick Midtown West 1633 Broadway $793.8 2,359,172 49.0% $1,620.0 7/15 Paramount Group/Beacon Capital/ Morgan Stanley/Bank of America 3 Office $687 SL Green Midtown West 230 Park Ave. (Helmsley Building) $731.3 1,212,576 95.0% $769.8 6/9 Invesco/National Pension Service Monday Properties/Goldman Sachs 4 Office $635 Midtown East 299 Park Ave. $623.7 1,160,000 49.5% $1,260.0 8/1 Alaska Permanent Fund Rockpoint Group 5 Office $1,086 LIST RANK 1 Midtown East ADDRESS 1 W. 23rd St. (200 Fifth Ave.) $623.0 878,035 89.0% $700.0 9/16 JPMorgan Lehman Brothers/L&L Holding 280 Park Ave. Office $797 Midtown South PRICE PER SQ. FT. $941 55 E. 52nd St. (Park Avenue Plaza) $598.8 1,230,000 49.9% $1,200.0 10/12 Zhang Xin Rockpoint Group 7 Office $976 Midtown East 750 Seventh Ave. $485.0 591,169 100.0% $485.0 5/3 Kuwait Investment Authority Hines/General Motors 8 Office $820 Midtown West 450 W. 33rd St. $444.1 1,750,000 85.0% $522.5 5/15 Brookfield Asset Management Broadway Partners/Arbor Realty 9 Office $299 Trust Midtown West 401 E. 34th St. (Rivergate) $443.0 706 100.0% $443.0 7/19 UDR Inc. Zucker Organization 10 Apartment $627,479 Midtown East 1 Park Ave. $437.0 957,000 95.0% $460.0 3/1 Vornado Realty Trust Murray Hill Properties/Cerberus 11 Office $481 Capital Management Midtown East LIST RANK 2 42-09 28th St. (2 Gotham Center) $415.5 670,011 100.0% $415.5 10/27 H&R REIT Tishman Speyer 12 Office $620 ADDRESS Long Island City, Queens 601 W. 26th St. 140 E. 45th St. (2 Grand Central Tower) $401.0 636,223 100.0% $401.0 10/25 Rockwood Capital Boston Properties/Goldman Sachs PRICE PER SQ. FT. 13 Office $630 $398 Midtown East 870 Seventh Ave. (Park Central Hotel) $396.2 934 100.0% $396.2 12/31 LaSalle Investment Management Highgate Properties/ Hotel $424,197 Goldman Sachs Midtown West 455 Madison Ave. (New York Palace Hotel) $377.0 899 100.0% $377.0 7/18 Northwood Investors LLC Brunei Investment Agency 15 Hotel $419,355 Midtown East 1540 Broadway (Bertelsmann Building) $346.8 907,427 51.0% $680.0 9/28 EDGE Fund Advisors/ CBRE Global Investors 16 Office $749 HSBC Holdings Midtown West 120 Broadway (Equitable Building) $341.3 1,729,295 65.0% $525.0 7/1 UBS CBRE Global Investors 17 Office $304 OBO CalSTRS Downtown 511 Lexington Ave. (Radisson Lexington) $333.7 712 100.0% $333.7 5/31 DiamondRock Hospitality Co. Blackstone/Highgate Holdings LIST RANK 3 18 Hotel $468,680 Midtown East ADDRESS 95 Wall St. (Dwell95) $325.0 507 100.0% $325.0 8/31 UDR Inc. Moinian Group 1633 Broadway 19 Apartment $641,026 PRICE PER SQ. FT. Downtown $687 666 Fifth Ave. (Zara retail condo) $324.0 38,750 100.0% $324.0 2/28 Inditex Carlyle Group/Crown Retail $8,361 Acquisitions Midtown West 35 E. 76th St. (The Carlyle) $319.4 188 100.0% $319.4 7/29 New World Development Rosewood Property Co./Maritz 21 Hotel $1,698,936 Wolff & Co. Upper East Side 440 W. 42nd St. (Yotel) $315.0 669 100.0% $315.0 6/7 IFA Hotels & Resorts/Kuwait Related Cos./Goldman Sachs 22 Hotel $470,852 Real Estate Co. Midtown West 212 E. 42nd St. (New York Helmsley Hotel) $313.5 773 100.0% $313.5 3/23 Host Hotels & Resorts Inc. Estate of Leona Helmsley 23 Hotel $405,563 Midtown East 340 Madison Ave. $309.4 750,000 49.5% $625.0 7/29 USAA Real Estate Broadway Partners/RXR Realty 24 Office $833 Midtown East LIST RANK 4 620 Sixth Ave. (Bed Bath & Beyond Building) $275.0 670,000 55.0% $500.0 12/30 RXR Realty Bonjour Capital/Yair Levy/ ADDRESS 25 Office $746 Chetrit Group 230 Park Ave. Midtown South PRICE PER SQ. FT. 1-Partial interest transactions included at the prorated share of the 100% property value. Real Capital Analytics Inc. is an independent research firm focused exclusively on capital investment markets for commercial real estate. RCA offers compre- $635 hensive information on activity in the industry. In addition to collecting transactional information for property sales and financings, it interprets the data, including capitalization rates, market trends, pricing and sales volume. The firm publishes a series of Capital Trends reports and offers an online service that provides real-time, global transactional market information. Visit www.rcanalytics.com.

36 | Crain’s New York Business | January 16, 2012 nb03p38-40cl.qxp 1/12/12 2:12 PM Page 38

EXECUTIVE PUBLIC & LEGAL NOTICES Notice of Qualification of Ardour Notice of Qualification of BLACKBIRDS Notice of Qualification of CBS LITV Notice of Qualification of EQUITY ONE RECRUITER Asset Management, LLC. App. for OPERATIONS ENTERPRISES LLC. LLC. Authority filed with Secy. of (METROPOLITAN) LLC. Authority filed Auth. filed Secy. of State NY (SSNY): Authority filed with Secy. of State of State of NY (SSNY) on 12/05/11. with Secy. of State of NY (SSNY) on POSITION AVAILABLE 11/18/11. Ofc. Loc.: NY Cty. Jurisd. NY (SSNY) on 12/07/11. Office Office location: NY County. LLC 12/21/11. Office location: NY County. and date of org.: DE, 11/8/11. SSNY location: NY County. LLC formed in formed in Delaware (DE) on 12/02/11. LLC formed in Delaware (DE) on Software Developer, designated as agent upon whom Delaware (DE) on 11/10/11. Princ. Princ. office of LLC: 51 W. 52nd St. 08/16/11. Princ. office of LLC: 1600 NE Global Interest Rate Products process against it may be served and office of LLC: 1411 Broadway, 39th (19-13), NY, NY 10019. SSNY desig- Miami Gardens Dr., N. Miami Beach, (Citadel LLC - New York, NY) Dvlp & shall mail copy of process to the DE Fl., NY, NY 10019. SSNY designated nated as agent of LLC upon whom FL 33179. SSNY designated as agent maintain the data abstraction layer to addr. of the LLC: United Corp. Svcs., as agent of LLC upon whom process process against it may be served. of LLC upon whom process against it support the Rates trading business. Inc., 874 Walker Rd., Ste. C, Dover, against it may be served. SSNY shall SSNY shall mail process to c/o may be served. SSNY shall mail Reqs a Bach’s degree (or foreign equiv) DE 19904. Princ. bus. addr.: 350 5th mail process to c/o Desiree Perez, S. Corporation Service Co. (CSC), 80 process to c/o Corporation Service Co., in Comp Sci, Engineering or Math & Ave., Ste. 3018, NY, NY 10118. Cert. Carter Enterprises, LLC at the princ. State St., Albany, NY 12207-2543. DE 80 State St., Albany, NY 12207-2543. 5 yrs exp dvlp’g finan trading apps & of LLC filed with: DE Secy. of State, office of the LLC. DE addr. of LLC: addr. of LLC: c/o Corporation Service DE addr. of LLC: 2711 Centerville systems. Stated exp must incl 2 yrs exp 401 Federal St., Dover, DE 19901. 2711 Centerville Rd., Ste. 400, Co., 2711 Centerville Rd., Ste. 400, Rd., Ste. 400, Wilmington, DE 19808. in the following: C++, multi-threaded Purpose: any lawful acts. Wilmington, DE 19808. Arts. of Org. Wilmington, DE 19808. Arts. of Org. Arts. of Org. filed with DE Secy. of real time app on the Windows/Linux filed with Secy. of State, DE, Div. of filed with Secy. of State of DE, Div. of State, 401 Federal St., Dover, DE environments; SQL, Sybase ASE Notice of Formation of WRE Equity Corp., John G. Townsend Bldg., 401 Corps., John G. Townsend Bldg., 19901. 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Of State of N.Y. on 11/3/11. with the Secretary of State on Resumes: ER/EH, Attn: R-0164, Citadel Levinson Ganfer & Shore LLP, 360 NY County. LLC formed in MO on Office location: NY County. SSNY January 4, 2012. NY Office Location: LLC, 131 S Dearborn St, 32nd Fl, Lexington Ave., 14th Fl., NY, NY 12/29/1994. NY Sec. of State desig- designated as agent of LLP upon New York County. Secretary of State Chicago, IL 60603. 10017. Purpose: any lawful purpose. nated agent of LLC upon whom whom process against it may be is designated as agent upon whom process against it may be served served. SSNY shall mail process to process against the LLC may be Notice of Qual. of Sydell Group LLC, and shall mail process to: c/o CT principal business location: 41 served. Secretary of State shall mail TELECOMMUNICATIONS Auth. filed Sec’y of State (SSNY) Corporation System, 111 8th Ave., Madison Avenue, 41st Fl., NY, NY a copy of any process against the 6/22/11. Office loc.: NY County. LLC NY, NY 10011. 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DE off. addr.: • FREE PICKUP & DELIVERY Office location: NY County. Princ. and shall mail process to: c/o CT HOLDINGS, LLC. Arts. of Org. filed CSC, 2711 Centerville Rd., Wilmington, • 48 HOUR TURNAROUND office of LLC: 35 E. 21st St., NY, NY Corporation System, 111 8th Ave., NY, with Secy. of State of NY (SSNY) on DE 19808. Cert. of Form. on file: ON REPAIRS 10010. SSNY designated as agent of NY 10011, regd. agent upon whom 12/21/11. Office location: NY County. SSDE, Townsend Bldg., Dover, DE LLC upon whom process against it • FREE ENGRAVING process may be served. DE address Princ. office of LLC: 17 W. 17th St., 5th 19901. Purp.: any lawful activities. may be served. SSNY shall mail • SHORT & LONG TERM of LLC: 1209 Orange St., Wilmington, Fl., NY, NY 10011. SSNY designated process to Davis & Gilbert LLP, 1740 RENTALS DE 19801. Cert. of Form. filed with DE as agent of LLC upon whom process PWAOD LLC, a domestic LLC. Arts. Broadway, NY, NY 10019. Purpose: Sec. of State, 401 Federal St., Dover, against it may be served. SSNY shall of Org. filed with the SSNY on Any lawful activity. DE 19901. Purpose: all lawful purposes. mail process to Corporation Service 11/14/2011. Office location: NY NOTICE OF FORMATION OF REGIS- Co., 80 State St., Albany, NY 12207- County. SSNY has been designated TERED LIMITED LIABILITY PARTNER- NOTICE OF FORMATION OF LIMITED 2543. Purpose: Any lawful activity. as agent upon whom process against SHIP. NAME: SERRINS FISHER LLP. LIABILITY COMPANY. NAME: 453 the LLC may be served. SSNY shall Certificate of Registration was filed WEST 46th STREET LLC. Articles of Notice of Qualification of NRG Energy mail process to: 244 5th Ave, Ste with the Secretary of State of New Organization were filed with the Services Group LLC. Authority filed 2541, NY, NY 10001. Reg Agent: PUBLIC & LEGAL York (SSNY) on 11/09/11, with an Secretary of State of New York (SSNY) with NY Dept. of State on 11/10/11. Allen M. Harvey, CPA, 915 Broadway, existence date of 01/02/2012. Office on 12/22/11. Office location: New Office location: NY County. Princ. bus. Ste 1209, NY, NY 10010. Purpose: NOTICES location: New York County. SSNY has York County. SSNY has been desig- addr.: 211 Carnegie Ctr., Princeton, NJ Any Lawful Purpose. nated as agent of the LLC upon whom 08540. LLC formed in DE on 10/28/10. Notice of formation of Point Grey been designated as agent of the LLP Notice of Formation of One57 66A, LLC. upon whom process against it may be process against it may be served. NY Sec. of State designated agent of Capital Advisors LLC. Arts of Org SSNY shall mail a copy of process to LLC upon whom process against it Arts. of Org. filed with Secy. of State filed with Secy Of State of NY served. SSNY shall mail a copy of of NY (SSNY) on 11/21/11. Office process to the LLP, 233 Broadway, the LLC, 372 West 46th Street, New may be served and shall mail process (SSNY) on 11/15/11. Office loc: NY York, New York 10036. Purpose: to: c/o CT Corporation System, 111 location: NY County. SSNY designated Cty. SSNY designated as agent 18th Floor, New York, New York as agent of LLC upon whom 10279, which also serves as the loca- For any lawful purpose. 8th Ave., NY, NY 10011, regd. agent upon whom process against it may upon whom process may be served. process against it may be served. be served and shall mail process to: tion of the partnership. Purpose: For Notice of Qualification of Signal SSNY shall mail process to: c/o the practice of the profession of Law. DE addr. of LLC: 1209 Orange St., 129 W 75th St, 4F, NY, NY, 10023. Trading Systems, LLC. Authority filed Wilmington, DE 19801. Cert. of Form. Cahill Gordon & Reindel LLP, 80 Pine Purpose: any lawful acts. Notice of Qualification of Waterfall with NY Dept. of State on 12/2/11. filed with DE Sec. of State, 401 St., NY, NY 10005, Attn: Managing Office location: NY County. Princ. bus. Clerk. Purpose: any lawful activity. ERGO, LLC Articles of Org. filed NY Victoria REO 2011-01, LLC. App. for Federal St., Dover, DE 19901. Auth. filed with Secy. of State of NY addr.: 400 S. LaSalle St., Chicago, IL Purpose: all lawful purposes. Sec. of State (SSNY) 1/3/12. Office in 60605. LLC formed in DE on 5/13/10. Notice of Formation of LONGSON NY Co. SSNY desig. agent of LLC (SSNY) on 11/14/11. Office location: NY Sec. of State designated agent of Notice of Formation of KELLY STREET ESTATE GROUP, LLC. Articles of upon whom process may be served. NY County. LLC formed in Delaware LLC upon whom process against it PARTNERS, LLC. Arts. of Org. filed Organization filed with the Secretary SSNY shall mail copy of process to (DE) on 12/22/09. SSNY designated may be served and shall mail process with Secy. of State of NY (SSNY) on of State of NY (SSNY) on 11/15/2011. 481 Washington St., NY, NY 10014, as agent of LLC upon whom process to: c/o CT Corporation System, 111 10/21/11. Office location: NY County. Office location: NEW YORK County. which is also the principal business against it may be served. SSNY shall 8th Ave., NY, NY 10011. DE addr. of Princ. office of LLC: Workforce SSNY has been designated as agent location. Purpose: Any lawful purpose. mail process to: Capitol Services, Inc., 1218 Central Ave., Ste. 100, LLC: 1209 Orange St., Wilmington, DE Housing Advisors MM, LLC, 271 upon whom process against it may Notice is hereby given a License Albany, NY 12205. DE address of 19801. Cert. of Form. filed with DE Sec. Madison Ave., Ste. 1007, NY, NY be served. The Post Office addess to Number 1260078 liquor has been LLC: 1675 S. State St., Ste. B, of State, 401 Federal St., Dover, DE 10016. SSNY designated as agent of which the SSNY shall mail a copy of applied for by the undersigned to sell Dover, DE 19901. Arts. of Org. filed 19901. Purpose: all lawful purposes. LLC upon whom process against it may any process against the LLC served liquor at retail in a Restaurant under with DE Secy. of State, 401 Federal be served. SSNY shall mail process upon him/her is: 21 BENNET AVE, the Alcoholic Beverage Control Law at St., Ste. 4, Dover, DE 19901. Notice of Qualification of CDV III to the LLC at the addr. of its princ. # 43, NEW YORK, NY, 10033. 311 West 43rd Street, New York, NY Purpose: any lawful act or activity. HARRISON STREET, LLC. Authority office. Purpose: Any lawful activity. Purpose: any lawful act or activity. 10036 for on premises consumption. filed with Secy. of State of NY (SSNY) Applicant- Hakkasan NYC LLC Notice of Qualification of 430 W. 14 on 11/22/11. Office location: NY Notice of Qualification of BELLPORT Notice of Qualification of Tennessee Realty, LLC. Authority filed with NY County. LLC formed in Delaware (DE) MEZZ I, LLC. Authority filed with Secy. Gas Pipeline Company, L.L.C. Notice of Qualification of TalentWise Dept. of State on 11/25/11. Office on 11/16/11. Princ. office of LLC: c/o of State of NY (SSNY) on 12/19/11. Authority filed with NY Dept. of State Solutions LLC. Authority filed with NY location: NY County. Princ. bus. addr.: Clarion Partners LLC, Attn: Richard Office location: NY County. LLC on 10/18/11. Office location: NY Dept. of State on 12/28/11. Office 9130 W. Sunset Blvd., Los Angeles, Schaupp, 230 Park Ave., 12th Fl., NY, formed in Delaware (DE) on 11/10/11. County. Princ. bus. addr.: 1001 location: NY County. LLC formed in CA 90069. LLC formed in DE on NY 10169. SSNY designated as agent Princ. office of LLC: 37th Fl., 10 East Louisiana St., Houston, TX 77002. NV on 11/13/06. NY Sec. of State 11/16/11. NY Sec. of State designated of LLC upon whom process against 53rd St., NY, NY 10022. SSNY desig- LLC formed in DE on 10/1/11. NY designated agent of LLC upon whom agent of LLC upon whom process it may be served. SSNY shall mail nated as agent of LLC upon whom Sec. of State designated agent of process against it may be served and against it may be served and shall process to c/o Holland & Knight LLP, process against it may be served. LLC upon whom process against it shall mail process to: c/o CT mail process to: c/o CT Corporation Attn: M. James Spitzer, Jr., Esq., 31 SSNY shall mail process to c/o may be served and shall mail Corporation System, 111 8th Ave., NY, System, 111 8th Ave., NY, NY 10011, W. 52nd St., NY, NY 10019. DE addr. Corporation Service Co., 80 State St., process to: c/o CT Corporation NY 10011, regd. agent upon whom regd. agent upon whom process may of LLC: c/o Corporation Service Co., Albany, NY 12207-2543. DE addr. of System, 111 8th Ave., NY, NY 10011, process may be served. Principal be served. DE addr. of LLC: c/o The 2711 Centerville Rd., Ste. 400, LLC: 2711 Centerville Rd., Ste. 400, regd. agent upon whom process may office addr.: 500 108th Ave. NE, Floor Corporation Trust Co., 1209 Orange Wilmington, DE 19808. Arts. of Org. Wilmington, DE 19808. Cert. of Form. be served. DE addr. of LLC: 1209 22, Bellevue, WA 98004. Cert. of Org. St., Wilmington, DE 19801. Cert. of filed with DE Secy. of State, Div. of filed with Secy. of State of DE, Div. of Orange St., Wilmington, DE 19801. filed with NV Sec. of State, 202 N. Form. filed with DE Sec. of State, Corps., John G. Townsend Bldg., 401 Corps., John G. Townsend Bldg., Cert. of Form. filed with DE Sec. of Carson St., Carson City, NV 89701. 401 Federal St., Dover, DE 19901. Federal St., Ste. 4, Dover, DE 19901. 401 Federal St., Ste. 4, Dover, DE State, 401 Federal St., Dover, DE Purpose: all lawful purposes. Purpose: all lawful purposes. Purpose: Any lawful activity. 19901. Purpose: Any lawful activity. 19901. Purpose: all lawful purposes.

38 | Crain’s New York Business | January 16, 2012 nb03p38-40cl.qxp 1/12/12 2:13 PM Page 39

PUBLIC & LEGAL NOTICES

Notice of Qualification of UNITED Notice of Qualification of US Learning Notice of Qualification of IMG College, CERCA ACQUISITION I, LLC, Authority Notice of Qualification of ACRC TECH BATTERIES, LLC. Authority Partners, LLC. Authority filed with Secy. LLC. Authority filed with NY Dept. of filed with the SSNY on 08/17/2011. Lender LLC. Authority filed with NY filed with Secy. of State of NY (SSNY) of State of NY (SSNY) on 12/1/11. State on 9/15/11. Office location: NY Office location: NY County. LLC Dept. of State on 12/9/11. Office on 11/18/11. Office location: NY Office location: NY County. LLC County. Princ. bus. addr.: 1360 E. 9th formed in DE on 07/14/2010. SSNY location: NY County. Princ. bus. County. LLC formed in Delaware (DE) formed in Delaware (DE) on 10/28/11. St., Cleveland, OH 44114. LLC formed is designated as agent upon whom addr.: 2000 Ave. of the Stars, 12th on 10/31/11. SSNY designated as SSNY designated as agent of LLC in DE on 10/8/10. NY Sec. of State process against the LLC may be Fl., Los Angeles, CA 90067. LLC agent of LLC upon whom process upon whom process against it may be designated agent of LLC upon whom served. SSNY shall mail process to: formed in DE on 9/9/11. NY Sec. of against it may be served. SSNY shall served. SSNY shall mail process to: process against it may be served and 375 Park Ave, Ste 2607, NY, NY State designated agent of LLC upon mail process to c/o Corporation Seyfarth Shaw LLP, 620 Eighth Ave., shall mail process to: c/o CT Corporation 10152. Address required to be whom process against it may be Service Co. (CSC), 80 State St., NY, NY 10018, Attn: Charles Modlin, System, 111 8th Ave., NY, NY 10011, maintained in DE: Corporation Trust served and shall mail process to: CT Albany, NY 12207-2543. DE addr. of Esq. Principal office address: c/o regd. agent upon whom process may Ctr 1209 Orange St. Wilmington DE Corporation System, 111 8th Ave., LLC: c/o CSC, 2711 Centreville Rd, University Ventures, 1745 Broadway, be served. DE addr. of LLC: The 19801. Cert of Formation filed with NY, NY 10011. DE addr. of LLC: c/o Ste. 400, Wilmington, DE 19808. Arts. NY, NY 10019. Address to be main- Corporation Trust Co., 1209 Orange DE Div. of Corps, 401 Federal St., The Corporation Trust Co., 1209 of Org. filed with Div. of Corps., DE tained in DE: c/o Corporation Service St., Wilmington, DE 19801. Cert. of Suite 4, Dover, DE 19901. Purpose: Orange St., Wilmington, DE 19801. Secy. of State, John G. Townsend Bldg., Company, 2711 Centerville Rd., Ste. Form. filed with DE Sec. of State, Any Lawful Purpose. Cert. of Form. filed with DE Sec. of 401 Federal St., Ste. 4, Dover, DE 400, Wilmington, DE 19808. Arts of Org. 401 Federal St., Dover, DE 19901. State, 401 Federal St., Dover, DE 19901. Purpose: Any lawful activity. filed with the DE Secretary of State, 401 Purpose: all lawful purposes. Notice of Formation of Flow Medical Cell L.L.C. Arts. of Org. filed with NY 19901. Purpose: all lawful purposes. Federal St., Ste. 4, Dover, DE 19901. SDH/HL GENTRY LLC, a domestic Notice is hereby given that a license Purpose: any lawful activities. Dept. of State on 10/13/11. Office MARCELIN LLC, a domestic LLC, (#TBA) for BEER & WINE has been LLC, Arts. of Org. filed with the SSNY location: NY County. Sec. of State Arts. of Org. filed with the SSNY on applied for by LEBRINIS PIZZERIA JUNISO, LLC, a domestic LLC. Arts. on 11/22/11. Office location: New designated agent of LLC upon whom 10/4/11. Office location: New York CORP. at retail, in a RESTAURANT, of Org. filed with the SSNY on York County. SSNY is designated as process against it may be served and County. SSNY is designated as under the ABC Law at 31 AVE. C, NY, 12/08/2011. Office location: NY agent upon whom process against shall mail process to the principal agent upon whom process against NY 10009 for on-premises consumption. County. SSNY has been designated the LLC may be served. SSNY shall business addr.: 23 Waverly Place, the LLC may be served. SSNY shall as agent upon whom process against mail process to: The LLC, c/o Apt. 6t, NY, NY 10003. Purpose: all mail process to: The LLC, Attn: Mr. Notice is hereby given that a license the LLC may be served. SSNY shall Haymes Investment Company, 5 Penn lawful purposes. Luc Levy, 270 Lafayette St., #1201, (#TBA) for BEER & WINE has been mail process to: 234 E 58th St., NY, Plaza, 24th Fl, NY, NY 10001. NY, NY 10012. General Purposes. applied for by SERENA WAH, INC. at NY 10022. Reg Agent: Remy General Purposes. Notice is hereby given that a license, retail, in a RESTAURANT, under the Issembert, 234 E 58th St., NY, NY number 1259938 for liquor has been MLEKODAY CPA LLC, a domestic ABC Law at 1343 2ND AVE. 10022. Purpose: Any Lawful Purpose. Notice of Formation of Molecular applied for by the undersigned to sell PLLC, Arts. of Org. filed with the SSNY (NORTHERLY STORE) NY, NY 10021 Cell, LLC. Art. of Org. filed Sec’y of liquor at retail in a restaurant under the on 10/9/09. Office location: New for on-premises consumption. NOTICE OF FORMATION OF Wasser State (SSNY) 8/11/11. Office location: Alcoholic Beverage Control Law at 70 York County. SSNY is designated as Coaching LLC. Arts of Organization NY County. SSNY designated as Prince Street, New York, New York, agent upon whom process against Notice of Formation of GB CENTRAL filed with the Secretary of State of NY agent of LLC upon whom process 10012 for on premises consumption. the PLLC may be served. SSNY PARKING LLC. Arts. of Org. filed with (SSNY) on 11/17/11. Office loc: NY against it may be served. SSNY shall Applicant - Prince Street Restaurant shall mail process to: The LLC, 1798 Secy. of State of NY (SSNY) on Cty. SSNY designated as agent upon mail copy of process to 18 E. 48th LLC d/b/a Back Forty West 3rd Ave., NY, NY 10029. Purpose: 11/15/11. Office location: NY County. whom process may be served and St., Ste. 802, NY, NY 10017. Certified Public Accountancy. GS Galleries, LLC - Arts of Org. filed Princ. office of LLC: 7 Penn Plaza, shall mail process to: 4 Carriage Way, Purpose: any lawful activities. with Secy. of State of NY (SSNY) on Ste. 618, NY, NY 10001. SSNY Montclair, NJ 07042. Principal Notice of formation of Poly 11/3/2011. Office location: New York designated as agent of LLC upon business address: 300 Central Park Notice of Formation of Harz Energy, International Auction Co., LLC. The County. SSNY designated as agent of whom process against it may be West, Ste 1C, NY, NY 10024. LLC. Arts. of Org. filed with Secy. of company was formed on May 5, 2011 LLC upon whom process against it served. SSNY shall mail process to Purpose: any lawful acts. State of NY (SSNY) on 11/22/11. in NY County. Office address: 36 W. the LLC, c/o The Feil Organization at Off. loc.: NY Co. SSNY designated may be served. SSNY shall mail 44th St., Suite 707, New York, NY the princ. office of the LLC. Purpose: Notice of Formation of JEMCAP SD, as agent of LLC upon whom process to c/o Ganfer & Shore, LLP, 10036. Service of process may be Any lawful activity. LLC. Arts. of Org. filed with Secy. of process against it may be served. 360 Lexington Ave., NY, NY 10017. effected by mailing to the correspon- State of NY (SSNY) on 12/09/11. SSNY shall mail process to the LLC, Purpose: any lawful activity. ding Secretary of State. Purpose of NOTICE OF FORMATION of Eos Office location: NY County. Princ. c/o Northern Estates Corp., 20 West LLC: to engage in any lawful activity. Visions LLC, a domestic LLC filed office of LLC: 360 Madison Ave., Ste. 37th St., New York, NY 10018 INES G EDITORIAL LLC, a domestic with the Secretary of State of NY 1902, NY, NY 10017. SSNY designated Purpose: any lawful act or activity. LLC, Arts. of Org. filed with the SSNY NANASAMIKO LLC, a domestic LLC, (SSNY) on 10/27/11. Office location: NY as agent of LLC upon whom process on 12/12/11. Office location: New Arts. of Org. filed with the SSNY on County. SSNY has been designated against it may be served. SSNY shall NOTICE OF QUALIFICATION of C2i York County. SSNY is designated as 11/4/11. Office location: New York as agent upon whom process mail process to Corporation Service Methane Partners, LLC. App for Auth agent upon whom process against County. SSNY is designated as agent against it may be served. SSNY shall Co., 80 State St., Albany, NY 12207- filed with the Secy of State of NY the LLC may be served. SSNY shall upon whom process against the LLC mail a copy of any process against the 2543. Purpose: Any lawful activity. (SSNY) on 10/11/11. Office loc: NY mail process to: Ines Greenberger, may be served. SSNY shall mail pro- LLC served upon him to 1810 Third Cty. LLC formed in DE on 07/21/08. 55 E. 9th St., Ste. T-C, NY, NY 10003. cess to: Sam Rankell, 141 E. 76 St., Avenue, B7A, New York, NY 10029. NOTICE OF FORMATION OF Ocutex SSNY designated as an agent upon General Purposes. NY, NY 10021. General Purposes. Date of Dissolution: perpetual. Purpose: Software LLC. Arts of Org filed with whom process may be served and Latest date to dissolve 12/1/2050. the Secy of State of NY (SSNY) on shall mail process to: C/O C T HASDEI HASHEM LLC Articles of To engage in any lawful act or activity. Org. filed NY Sec. of State (SSNY) Notice of Formation of ARC Water 08/24/2011. Office loc: NY Cty. SSNY Corporation System, 111 Eighth Ave, Front Group LLC. Arts. of Org. filed Notice of Formation of D. MELLEN 12/1/11. Office in NY Co. SSNY designated as agent upon whom NY, NY 10011. Principal business with Secy. of State of NY (SSNY) on BARICK LLC. Arts. of Org. filed with desig. agent of LLC upon whom process may be served and shall mail addr: 93 St. Mark’s Pl, Ste 2, NY NY 12/13/2007. Off. loc.: NY Co. SSNY Secy. of State of NY (SSNY) on process may be served. SSNY shall process to: United States Corporation 10009. Certificate of LLC filed with designated as agent of LLC upon 12/08/11. Office location: NY County. mail copy of process to 241 West 37th Agents, Inc., 7014 13th Ave, Ste 202, Secy of State of DE loc at 401 Federal whom process against it may be SSNY designated as agent of LLC St., Ste. 208, NY, NY 10018, which is Bklyn, NY 11228. Principal business St, Ste 4, Dover DE 19901. Purpose: served. SSNY shall mail process to upon whom process against it may also the principal business location. address: 12 Desbrosses St, NY, NY any lawful acts. the LLC, 240 Riverside Blvd., #28B, be served. SSNY shall mail process Purpose: Any lawful purpose. 10013. Purpose: any lawful acts. New York, NY 10069. Purpose: any to c/o Deborah Mellen, 2000 Notice of Formation of PIE FACE 507 lawful act or activity. Broadway, 15C, NY, NY 10023. NOTICE OF QUALIFICATION of LLC. Arts. of Org. filed with Secy. of Notice is hereby given that a license Purpose: Any lawful activity. Guardian Distributors, LLC. App for State of NY (SSNY) on 11/16/11. (#TBA) for LIQUOR has been applied Notice of Formation of Trevor L James Auth filed with the Secy of State of NY Office location: NY County. SSNY for by WOODROWS MANAGEMENT Studio LLC. Arts of Org. filed with Sec. Notice of Qualification of Experis (SSNY) on 11/01/11. Office loc: NY designated as agent of LLC upon LLC at retail, in a RESTAURANT, of State of NY (SSNY) 10/07/2011. Finance US, LLC. Authority filed with Cty. LLC formed in DE on 10/14/11. whom process against it may be under the ABC Law at 43 MURRAY Office Location: New York County. NY Dept. of State on 12/5/11. Office SSNY has been designated as an served. SSNY shall mail process to ST. NY, NY 10007 for on-premises SSNY is designated agent for service location: NY County. Princ. bus. agent upon whom process against it Corporation Service Co., 80 State St., consumption. of process. SSNY shall mail process to addr.: 100 Manpower Pl., Milwaukee, may be served and shall mail process Albany, NY 12207-2543. Purpose: Notice of Formation of Northglen 44 West 96th St, # 4D. New York, NY, WI 53212. LLC formed in DE on to: Corporation Service Company, Any lawful activity. 10025. Purpose: any lawful purpose. 10/1/11. NY Sec. of State designated 2711 Centerville Rd., Wilmington, DE Properties, LLC, Art. of Org. filed agent of LLC upon whom process 19808. The principal business address: NOTICE OF FORMATION OF Minka Sec’y of State (SSNY) 7/26/11. Office Notice of Formation of 74 Wooster against it may be served and shall 7 Hanover Sq., New York, 10004 Holdings, LLC. Arts of Org filed with location: NY County. SSNY designated Holding, LLC. Articles of Organization mail process to: c/o CT Corporation Certificate of LLC filed with Secretary the Secy of State of NY (SSNY) on as agent of LLC upon whom process filed with Secy. of State of NY (SSNY) System, 111 8th Ave., NY, NY 10011, of State of DE located at DE Secy. of 09/08/11. Office loc: NY Cty. SSNY against it may be served. SSNY shall on 11/01/11. Office loc.: New York regd. agent upon whom process may State, 401 Federal St., Ste. 4, Dover, has been designated as agent upon mail copy of process to c/o Dahan & Co. SSNY designated as agent of be served. DE addr. of LLC: 1209 DE 19901. Purpose: any lawful acts. whom process may be served and Nowick, 1700 Broadway, NY, NY LLC upon whom process against it Orange St., Wilmington, DE 19801. shall mail a copy of any process to the 10019. Purpose: any lawful activities. may be served. SSNY shall mail Cert. of Form. filed with DE Sec. of Funke Literary, LLC filed an App. for principal business address: 450 West process to the LLC, 27 Howard Authority filed with the Dept. of State 42 Street, 37G, New York, NY 10036. Notice of Qualification of DUNE ROAD State, 401 Federal St., Dover, DE POOH, LLC. Authority filed with Secy Street, Unit 5, New York, NY 11013. 19901. Purpose: all lawful purposes. of NY on 9/12/2011. Jurisdiction: Purpose: any lawful acts. Purpose: any lawful act or activity. Delaware and the date of its organi- of State of NY (SSNY) on 11/07/2011. Notice of Qualification of Evolve zation is: 08/23/2011. Office location Notice of Qualification of AG MVP Office location: New York County. Notice of Qualification of CHARLES Discovery New York Series LLC, is New York County . The Secretary Plus SG II, L.P. Authority filed with NY LLC formed in Delaware (DE) on STERLING GROUP, LLC. Authority Series Two. Authority filed with Secy. of the State of NY (“SSNY”) is desig- Dept. of State on 12/12/11. Office 11/01/2011. SSNY designated as filed with Secy. of State of NY of State of NY (SSNY) on 12/15/11. nated as agent upon whom process location: NY County. LP formed in DE agent of LLC upon whom process (SSNY) on 01/03/12. Office location: Office location: NY County. LLC against it may be served, the address on 11/22/11. NY Sec. of State desig- against it may be served. SSNY shall NY County. LLC formed in Delaware formed in Delaware (DE) on 12/9/11. to which the SSNY shall mail a copy nated agent of LP upon whom process mail process to: c/o National Registered (DE) on 09/26/03. SSNY designated SSNY designated as agent of LLC of such process is: 1485 Fifth Ave., against it may be served and shall Agents Inc., 875 Avenue of the as agent of LLC upon whom process upon whom process against it may be Suite 15J, NY, NY 10035. Address mail process to the principal business Americas, Suite 501, New York, NY against it may be served. SSNY shall served. SSNY shall mail process to: maintained in its jurisdiction is: 1220 addr.: c/o Angelo, Gordon & Co., L.P., 10001. Address required to be mail process to c/o National The LLC, 611 Mission St., 4th Fl., San N. Market Street, Suite 806, Wilmington, 245 Park Ave., 26th Fl., NY, NY 10167. maintained in home jurisdiction: 160 Registered Agents, Inc., 875 Ave. of Francisco, CA 94105. Address to be DE 19801. The authorized officer in DE addr. of LP: c/o The Corporation Greentree Drive, Ste. 101, Dover, DE the Americas, Ste. 501, NY, NY 10001. maintained in DE: 160 Greentree Dr., its jurisdiction where a copy of its Trust Co., 1209 Orange St., Wilmington, 19904. Arts of Org filed with Secretary DE addr. of LLC: 160 Greentree Dr., Ste. 101, Dover, DE 19904. Arts of Certificate of Formation can be obtained DE 19801. Name/addr. of genl. ptr. of State, Corporation Division, 401 Ste. 101, Dover, DE 19904. Arts. of Org. filed with the DE Secretary of is: Jeffrey W. Bullock, Division of available from NY Sec. of State. Cert. Federal St., Suite 4, John G. Townsend Org. filed with DE Secy. of State, Div. State, 401 Federal St., Townsend Corporations, John G. Townsend Bldg., of LP filed with DE Sec. of State, Bldg., Dover, Delaware 19901. of Corps., John G. Townsend Bldg., Bldg., Ste. 4, Dover, DE 19901. 401 Federal St.Suite 4, Dover, DE Townsend Bldg., Dover, DE 19901. Purpose: Acquisition, Development & 401 Federal St., Ste. 4, Dover, DE Purpose: any lawful activities. 19901. The purpose is: any lawful act. Purpose: all lawful purposes. Management of Real Estate. 19901. Purpose: Any lawful activity.

January 16, 2012 | Crain’s New York Business | 39 20120116-NEWS--0040-NAT-CCI-CN_-- 1/12/2012 6:07 PM Page 1

OUTPACING THE PACK Total The two faces of Joseph Ficalora change for New York Community Bancorp’s adjusted stock close KBW Bank Index: Continued from Page 1 serving interests.” for a two-year stint in Vietnam, has 182% All this might make the subject of Lately regulators have added been there ever since. He earned his Total a heartwarming biopic if it weren’t their voices to the storm of criticism. business degree via night classes at change for NYCB: for one discordant fact: Mr. Ficalo- Last summer, the city’s Depart- Pace University. 2,181% ra’s bank holds mortgages on more ment of Housing Preservation and Today, he contrasts his humble decrepit apartments than any other Development wrote Mr. Ficalora a background with that of his critics, in the city. A study by a housing letter observing that apartment whom he characterizes as people group last year found that NYCB fi- buildings in his bank’s portfolio who “go to Columbia, get a degree nances the owners of nearly 9,000 were averaging nearly five violations in social activism and figure out how distressed apartments, more than per each unit deemed “hazardous”or to hassle people into doing what the next three banks combined. In “immediately hazardous.” they want them to do.” Source: Bloomberg all, his bank provides financing for “NYCB’s holdings are some of Asked why he lends so much to more than 3,000 buildings housing the most distressed properties in low-income housing, Mr. Ficalora 85,000 apartments, twice as many as New York,” the agency concluded. explains that it simply makes sound nine months of last year, almost as wife saying,‘I don’t know what’s go- anyone else in town. In another setback, the Federal business sense to lend in markets much as it generated in earnings. ing on—the driveway is full of peo- “He’s banker to the slumlords,” Deposit Insurance Corp.last year cut where there’s little risk if loans are The dividend represents a big chunk ple,’ ” he recalled. said Jonathan Levy, an attorney at NYCB’s rating for how it meets the made properly. After all, rents are of Mr. Ficalora’s personal wealth, With activists banging at his Legal Services NYC-Bronx. needs of low- and moderate-income usually stabilized at below-market since over his 46 years at the bank front door and officials from the city neighborhoods to “satisfactory” after prices,so vacancies are rarely a prob- he’s accumulated 4.6 million shares, and FDIC breathing down his neck, No. 1 target five years of rating it “outstanding.” lem. Meanwhile, sizing a loan sim- according to Bloomberg data, and Mr. Ficalora blinked. In fact, low-income-housing ac- Mr. Ficalora attacks his critics as ply means finding out how much his dividend income is nearly as high “He sued for peace,” said Mr. tivists contend that a big reason why people pushing a political agenda rent the building generates and as his 2010 salary and bonus of $5.6 Levy of Legal Services NYC. Mr. Ficalora’s financial record is so who have no understanding of how what the expenses are, and then es- million. The hefty payout is also a None of the parties would com- stellar is that his slumlord borrowers banking works. Far from ignoring timating how much rents will be al- key part of NYCB’s growth-via-ac- ment on the peace treaty’s terms,but routinely boost their earnings by landlords who don’t care for their lowed to rise in the future. quisition strategy, because Mr. a person familiar with the matter minimizing spending on their properties, his bank works with This cautious approach served Ficalora uses his high-yielding stock said Mr. Ficalora has agreed to give buildings. In some cases, they do so them to make their buildings more NYCB particularly well during the as currency to lure other banks. activist groups a first look at any even after being repeatedly cited for livable so they are worth more and housing bubble. Mr. Ficalora likes Unlike his peers, it isn’t market mortgages on distressed properties violations by the city. In addition, can qualify for larger loans.He adds, to tell the story of how his bank lent reversals that pose a threat to Mr. that he’s planning to sell. the activists say, Mr. Ficalora fre- though, that it’s ultimately the re- $11 million to Riverton Houses, a Ficalora’s bank today; it’s growing He wouldn’t say what moved him quently lends to owners who hope to sponsibility of landlords to maintain large Harlem apartment complex, pressure from activists. A case in to lay down arms, but the FDIC’s push out low-income tenants for their properties, not their lenders. only to be pushed aside in 2005 point came in March when NYCB decision to cut his bank’s communi- those who can pay higher rents. He When landlords default, he ad- when North Fork Bancorp lent took an undisclosed loss on the sale ty-lending rating may well have also stands accused of selling mort- mits, he sells their properties to the $125 million. A year later, Credit of a $16 million mortgage on eight been a factor.Starting two years ago, gages on distressed buildings to highest bidder, and he suspects Suisse stepped in with $250 million troubled Bronx buildings it had fore- Mr. Ficalora has been expanding buyers who have no intention of re- that’s what really rankles the ac- in loans, which soon defaulted be- closed on. Tenants had teamed up nationally, snapping up failed banks habilitating them. tivists. As he sees it, they would pre- cause they far exceeded the rent gen- with Legal Services NYC to force in Ohio, Florida and Arizona. Activists have anointed Mr. fer if he sold those properties to erated by the apartments. the bank in court to pay for repairing The seller? None other than the Ficalora their No. 1 target and have them and their backers, including NYCB also reduces its risk pro- leaky roofs, eliminating mold and FDIC. If he wants more busted successfully recruited regulators to hedge funds that want to flip the file by keeping the terms of its loans updating electrical equipment. banks sent his way, he needs good their cause. And that’s made Mr. buildings for quick profits. relatively short. Its average credit relations with his regulator. Ficalora steaming mad. He angrily Having grown up in what he de- matures in four years or less. Peace treaty As Mr. Ficalora sees it, his deci- rebuts their charges. scribes as low-income housing in Playing it so close to the vest is vi- The activists also started taking sion to forge a deal with his critics “There’s no one who’s done more Corona, Queens—sharing a bed- tal because Mr. Ficalora’s bank can’t the fight directly to Mr. Ficalora, was just a matter of simple logic. for low-income housing than we room with his two brothers—the afford many mistakes. NYCB’s re- even showing up at his home one “When a baby is howling, you have,” he said, noting that over the 64-year-old executive insists he serves are kept relatively low, with day in 2010. It was a frightening eventually figure out that you have past decade his bank has loaned $34 knows his market from the inside much of the cash it generates paid out turn of fortune for a man long accus- to change the diaper,” he said. Ⅲ billion for such purposes. “The at- out. After working at the local su- in an unusually generous dividend. tomed to accepting accolades from tacks that have been put against us permarket and drugstore, he joined The bank cut shareholders $330 the community. LISTEN to a discussion at have been totally driven by self- NYCB at 18 as a teller and, except million worth of checks in the first “I got a panicked call from my CrainsNewYork.com/podcasts

PUBLIC & LEGAL NOTICES Notice of Qualification of Tivoli West, Notice of Formation of LEHIGH 83, Notice of Qual. of Andor Opportunity Notice of Formation of Progressive Notice of Qual. of 1775 Grand LLC. Authority filed with NY Dept. of LLC. Arts. of Org. filed with Secy. of Fund, L.P., Auth. filed Sec’y of State Rehab and Home Care PT, PLLC. Concourse LLC, Auth. filed Sec’y of State on 11/22/11. Office location: State of NY (SSNY) on 01/04/12. (SSNY) 6/20/11. Office loc.: NY County. Arts. of Org. filed with Secy. of State State (SSNY) 8/19/11. Office loc.: NY NY County. LLC formed in DE on Office location: NY County. Princ. LP org. in DE 2/23/11. SSNY desig. of NY (SSNY) on 11/16/11. Off. loc.: County. LLC org. in DE 8/12/11. SSNY 7/20/11. NY Sec. of State designated office of LLC: 950 Third Ave., 31st as agent of LP upon whom process NY County. SSNY designated as desig. as agent of LLC upon whom agent of LLC upon whom process Fl., NY, NY 10022. 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40 | Crain’s New York Business | January 16, 2012

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community.” the city in 2010; the costly fraud and The Bloomberg achievement delays of the 12-year, $700 million Bloomberg legacy that will be hardest to reverse is de- CityTime contract; the misbegot- velopment, which has gone far be- ten appointment of magazine exec- Continued from Page 1 “Most people won’t give yond rebuilding lower Manhattan. utive Cathleen Black as schools thing,you come back and try again.” Bloomberg credit, but he changed “Based on the framework creat- chancellor. Mr. Bloomberg’s tenacity paid the atmosphere of this city from ed by [former Deputy Mayor] Dan “The best thing about the third off when he cleared a political path Rudy Giuliani,” said George Arzt, Doctoroff,he has the greatest devel- term was being elected,” Mr. Mac- to redevelop the vacant Kingsbridge who was Mr. Koch’s press secretary. opment record in the modern histo- chiarola said. “After that, it was Armory in the Bronx, erasing an “It was a tense place. It’s a little gen- ry of New York City since Robert downhill.” earlier defeat over its revival.Success tler and a little less polarized now.” Moses,” said Jay Kriegel, a long- But those snafus may ultimately would add five more acres to the When Mr. Bloomberg arrived at time political observer. “There isn’t be cast as footnotes.Of greater long- swaths of land revitalized under his City Hall, he set up his trading- anything else like it.” term concern is the escalation of city watch. desk-style bullpens and declared an New York City’s pitch for the spending under the businessman The mayor’s steadfastness, how- era of openness and objectivity. “In 2012 Olympics failed nearly seven mayor. Mr. Bloomberg balanced ever,has delivered fewer victories on God we trust. Everyone else, bring years ago, but zoning changes he budgets by increasing property tax- education,the centerpiece of his ad- data,” was the mayor’s jocular re- won before and after the bid have re- es, fines and fees while handing out

ministration.Mr.Bloomberg’s take- frain.It may well be a fitting epitaph. shaped neighborhoods. Where the buck ennis union contracts that have helped over of the school system inked ed- He expanded the Mayor’s Manage- Olympic Village was planned, EDUCATION REFORM has been a double the city budget. Pension ucation into the job ment Report and created a Hunters Point South, a middle- challenging goal for Mayor Bloomberg. costs in particular have spiked,an is- description of every future 311 service as reliable as 911. class housing development,is rising. sue the mayor has only taken on in mayor. But students’ 115 It was well received by New Over all,the Bloomberg adminis- his final term. progress has been mixed. REZONINGS Yorkers and produced a tration has passed 115 rezonings years,” Mr. Cestero said. With fewer than 700 days left in passed since Despite a doubling of the 2002, covering fount of data that identified since 2002, spurring development in By that time, Mr. Bloomberg’s his tenure, a remaining threat to his Education Department’s more than the city’s trouble spots in real underutilized areas and protecting signature achievement of 2011 may legacy is the administration’s con- budget, test scores have not 10,300 blocks time. established neighborhoods. The be living up to its promise.The may- troversial stop-and-frisk policy, improved much. And critics He crafted the more fre- Williamsburg waterfront boasts or believes the Cornell University which has seen young black men say the hard-charging administra- quent Citywide Performance Re- shiny towers and teems with concert- applied science campus on Roo- patted down by police an average of tion has run roughshod over parents port, or CPR, using its numbers to goers in the summer. Brooklyn sevelt Island will transform the city’s once a year. in its zeal to transform public justify his policies. Bridge Park is an oasis as well as a tech sector and wean Gotham from “This administration has been in- schools. The mayor curbed smoking, staging ground for a booming new its dependence on Wall Street. By credibly insensitive,”one business ex- “Education reform has eluded trimmed trans fats,booted cars from East River ferry. The 42-block area combining development with edu- ecutive said of the practice. “They’re him,”said Frank Macchiarola,a for- Times Square and installed a on the far West Side that was to fea- cation, the campus represents the leaving a legacy, which I think is ter- mer schools chancellor. “The ad- labyrinth of bike lanes. Data shaped ture an Olympic stadium now in- purest expression of his passions and ribly troublesome, of a growing neg- ministration has not gotten to the his ambitious sustainability blue- cludes the Hudson Yards develop- accomplishments. ative relationship between the cops point where the issue of class and print,PlaNYC.His restaurant letter ment site and the first expansion of “That’s why it’s good to have and the minority community and race has been minimized as a factor grades have given diners more con- the subway system in decades. someone who knows the buck,” said damaging the lives of tens of thou- in education.” fidence. The building boom and a steady Mr. Koch, the other living three- sands of minority kids.” Mr. Bloomberg may yet be re- Most of the mayor’s changes rise in property prices—and taxes— term mayor. The mayor, despite his working- membered as the education mayor, have been controversial, and some have, however, squeezed many New After 12 years, many New York- class roots and gringo Spanish, will but after a decade in office, he now may not survive the next adminis- Yorkers. The mayor had hoped to ers undoubtedly will be glad to see not be remembered for a common only cites “real progress turning it tration because they represented a temper their concerns by creating or Mr. Bloomberg go, believing he touch. And public frustration with around,” not a turnaround itself. go-it-alone approach. Whether preserving 165,000 affordable- wore out his welcome when he over- an executive who can appear out of However, a broad array of initia- community groups will push the housing units over 10 years.But fed- turned term limits in 2008. Chang- touch may lead his successor to em- tives has made city life easier. After next administration to advance the eral funding cuts threaten that goal. ing the law in the name of stability brace a more populist, less data- New Yorkers elected the billionaire sustainability agenda, for example, Former Housing Preservation and smacked of arrogance and eroded driven style. businessman in the wake of Sept. remains to be seen. Development Commissioner Rafael trust in the mayor and may one day Said one political consultant, “It 11, the apolitical manager not only “The concern was this was a very Cestero believes it will be met and be mentioned in the same sentence will be a long time before we have an- calmed the frayed nerves of a city, top-down document,” said former that the expanded stock will ease the as his greatest achievements. other rich guy elected as mayor.” Ⅲ but in his sober approach softened Department of Environmental Pro- city’s housing strains—eventually. The problems of his third term edges hardened by Mr. Giuliani’s tection Commissioner Marilyn “The mayor’s full legacy on this have underscored that sense: the to a discussion at CrainsNewYork.com/podcasts acerbic persona. Gelber. “It did not spring from the one isn’t going to be seen for 20 Christmas blizzard that paralyzed

mence this year. Bank hired the developer to finish project on hold. During the lull, ex- Related turns heads The deal brings in a construc- the Cosmopolitan of Las Vegas, a ecutives looked for ways to realign tion company whose work in the $3.9 billion hotel and casino whose costs with the new fiscal reality,talk- city has mostly been on infrastruc- owner had defaulted on a $760 mil- ing extensively with general con- Continued from Page 1 for competition.” ture, including the widening of one lion loan. The move to reunite at tractors,but also interviewing all the learned. Work on Hudson Yards is sched- of the nation’s busiest runways at Hudson Yards is a blow to the city’s subcontractors on the job in an ef- The key to Related’s decision: uled to start later this year, begin- John F.Kennedy International Air- major construction players, who no fort to understand their costs. Seg- Tutor Perini owns various subcon- ning with the 1.7 million-square- port and the construction of the doubt had their hearts set on Hud- ments of the project were bid out to tractors and can do a wide array of foot Coach tower that is expected to AirTrain’s Jamaica Station termi- son Yards. Tishman will play a role streamline costs. construction work—including ex- be completed by 2015. The entire nal. Tutor Perini also has experi- in the development, though a lesser The Tutor Perini hiring is a nod cavation, concrete forming and project will transform the far West ence building gambling venues and one than if Tutor Perini were not in- to an argument made last summer placement, steel erection, electrical Side with three office buildings, was tapped by Genting Malaysia volved. by labor leaders that paying union and mechanical services and plumb- nine residential towers with 5,000 Berhad to build Resorts World Related officials have been sin- workers less isn’t the only way to re- ing—on its own. By bringing a new Casino, the new development at gle-minded about finding a way to duce the city’s spiraling construc- player into a notoriously closed-off Aqueduct Racetrack. reduce costs for several years now, tion costs. But it’s just a piece of Re- market, Related increases competi- A California “It’s time-honored that the com- especially with Hudson Yards loom- lated’s effort to lower costs on the tion, which should lower prices. panies that work here are the com- ing. Their efforts intensified when West Side. The main construction man- contractor’s panies that work here, and that’s the Sam Zell’s Chicago-based Equity The developer is in talks with agers in the New York market— end of it,” said former New York Residential swooped in two years unions on project-labor agreements Lend Lease, Plaza, Tishman Con- hiring boosts City Buildings Commissioner Pa- ago to construct a building in the for Hudson Yards, hoping for struction and Turner—lack the tricia Lancaster, a professor of con- heart of Manhattan using nonunion changes to work rules and discounts ability to self-perform work,and the competition struction management at the NYU labor. They worry that other devel- on salaries and benefits to help pro- subcontractors they hire often oper- Schack Institute of Real Estate.“For opers will follow Mr.Zell’s example, pel the project forward. ate without transparency and com- Related to change the paradigm is tilting the field against union-only “We’re working to address labor petition. pretty striking.” builders. cost issues, but we can’t do this Developers have grown frustrat- Related declined to comment. Related was outspoken during alone,” said Paul Fernandes, chief of ed by what they contend is a tightly units, a 750,000-square-foot glass- Tutor Perini did not return a call the summer contract talks, which staff at the Building and Construc- controlled insiders’ game that limits encased mall, a school, a cultural seeking comment. developers felt only nibbled around tion Trades Council. “Cost increas- their ability to control prices. The center and 12 acres of open space. Louis Coletti, president of the the edges of needed work-rule es are not only on the labor side. In Tutor Perini hiring is an attempt to Tutor Perini will also be the con- Building Trades Employers’Associ- changes. Company executives fact, if you look at the numbers, change the rules. tractor on Related’s residential tow- ation, which represents the city’s worked tirelessly to reduce costs on they’re more heavily on the contrac- “I think it’s an aggressive move,” er at West 30th Street and 10th Av- unionized contractors, declined to their 1.2 million-square-foot tor side.” said Steven Spinola,president of the enue, on the outskirts of Hudson comment. Calls to several contrac- mixed-use project on West 42nd Related seeks savings on both Real Estate Board of New York. Yards.Construction on that project, tors were not returned. Street when the economy tanked. fronts and is turning Hudson Yards “Bringing another significant com- being developed with Abington Related and Tutor Perini became Related had poured the founda- into a testing ground that could re- pany like this into the city is positive Properties, is also expected to com- acquainted in 2008 when Deutsche tion when the recession put the verberate throughout the industry.Ⅲ

42 | Crain’s New York Business | January 16, 2012 Project1:fp template.qxd 1/6/12 4:11 PM Page 1

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hattan evolves.” and scores of startups went bust. “Trinity is great to work with,”said In the case of Hudson Square, “This time feels different, more Sacha Zarba,a senior vice president at Trinity rides Hudson blossomed would be more like it. It real,” said Joseph Harbert, chief op- CBRE, who has represented Trinity is the neighborhood that last year erating officer for Cushman’s New tenants. “They are more concerned Continued from Page 4 folio for decades. In addition, the posted the largest drop in vacancy York Metro Region. He said many about the quality of their tenant base when it opens. surrounding areas of SoHo and rates and highest increase in asking companies during the boom were and long-term success of their portfo- In the last 14 months, Trinity’s Tribeca have become two of the rents for top-line buildings, accord- based more on concepts, while the lio than the last dollar.” occupancy has risen to 92% from city’s most desirable residential ing to Cushman. It is also part of a firms leasing space now have real Still, tenants have complained 84% while rents jumped 26%, far neighborhoods in recent years, bigger success story called midtown products—and, very often, profits. about a lack of shops and restaurants outpacing the average Manhattan complete with fine restaurants and south,a market that roughly extends in the area. In recent months, Hale increase of 5% last year,according to shopping. Meanwhile, the new me- down from 32nd Street to Canal Longtime survivor and Hearty Soups, Pret a Manger Cushman & Wakefield Inc. dia and tech businesses that are the Street. Powered by demand from Whatever happens, Trinity will and others have all opened up. The “We are having the most unbe- perfect fit for Trinity’s office spaces tech and media companies, it boasts likely survive just as it has since new building at 330 Hudson St. will lievable year,” said Jason Pizer, pres- are flourishing. the lowest vacancy rate of any cen- 1705, when it received land in what add about 20,000 square feet of retail ident of Trinity. tral business district in the country. is now the Hudson Square area from space when it opens. In the longer That success has its roots back in Timing trumps location Now Trinity and other area land- Queen Anne of England.As a long- term, Mr. Pizer said, the numbers the early 1980s, when media firms “Everyone says real estate is lords hope history doesn’t repeat it- time owner, Trinity can be more should increase as Trinity develops a looking for bargains began replac- about location, but it is really about self. During the dot-com boom, flexible on rents than landlords who rezoning plan to allow for more res- ing the printing companies that had timing,” said Mr. Pizer. “After a midtown south also prospered, only are saddled with huge mortgages idential development, which would been the lifeblood of Trinity’s port- while, every neighborhood in Man- to struggle when the bubble burst from recent purchases. attract more retailers. Ⅲ

HOT SPOT: The Ann Taylor and the private labels of But the clothier is also concentrat- set for Rebecca department stores. In addition, its ing on footwear, a strong category will be lit on fire Jones brands are not coveted, or even well that did well even during the reces- every evening. known, internationally. sion. In fact, it changed its name last Continued from Page 3 The arrival of Ms. Greenfield, an year from Jones Apparel Group to the ers retail strategy. experienced player in the luxury mar- Jones Group to reflect such a shift. The team hasn’t moved fast ket, is expected to change that. The To surpass shoe giants such as enough for investors, who have sent fashion maven, who founded Scoop Zappos and DSW, Jones is step- shares tumbling 37% in the past year. 16 years ago and helped turn it into a ping beyond Nine West into pricier The stock currently trades near $9. national 13-unit chain, is well labels. It made two recent acquisi- Earlier this month, the company, respected in the retail industry for her tions—London-based Kurt Geiger which has posted lower-than-expect- sense of style. “She has been current, for $350 million in June, and a ma- ed sales two quarters in a row,slashed if not visionary, on product, has jority stake in Stuart Weitzman for its fourth-quarter revenue guidance tremendous customer insight and $180 million in 2010. Each compa- to a range of $892 million to $895 knows how to respond immediately ny features its own retail locations. million, down from $918 million to as that customer evolves,”said Elaine For spring, Jones is banking on hot $961 million. By comparison, similar Hughes, who runs retail executive styles, including the smoking shoe Spring on Broadway firms such as VF Corp. and PVH search firm E.A. Hughes & Co. loafer and espadrille sandals, from Corp.are thriving.The former’s share both brands,to appeal to consumers Continued from Page 4 fast, and producers are doing every- price rose about 60% last year, while Navigating a new look of luxury goods. way turn in Private Lives ended in thing they can to win favor. “To me PVH’s was up by nearly 25%. Jones’ leaders are hoping Ms. Such purchases can also help shift December, five weeks prematurely. this season feels just as strong as last Jones’ problems stem in part Greenfield can upgrade the cloth- Jones’ manufacturing to Brazil and So far this season,attendance is down spring,”said Hal Luftig,who is pro- from a lack of identity. VF owns ier’s current drab fashions into a Spain, providing an alternative to 2.1% from the year-earlier period. ducing Evita. Mr. Luftig produced Northface, a popular brand em- more cutting-edge assortment that Chinese factories, where labor costs Catch Me if You Can last spring, a braced globally by consumers, and will be snapped up by working are increasing.They also mean less re- Dismal fall musical that some say closed quick- PVH has gained traction for its women who have been reluctant to liance on department stores, where “The fall had its measure of ly only because of the intense com- menswear from Calvin Klein and spend money in a down economy. Jones is at the mercy of markdowns. shows that didn’t work, even those petition it faced.“I’m worried about Tommy Hilfiger. Jones’ wom- “What Stefani’s bringing is a sense “The days of these wholesaler com- that came in with a big head of how crowded it is.” enswear was once beloved by career of what’s coming down the pike to- panies surviving on that business steam,” said Roy Furman, a produc- Mr. Luftig’s new show is likely to gals,but the brand in the past decade morrow in fashion,”said Mr.Dickson model are really dwindling,” said er of Nice Work if You Can Get It, an get a marketing boost from its star, has lost market share to the likes of at an investors’ conference last week. Robin Report’s Ms. Russell. Ⅲ upcoming musical starring Mr. Martin, who has a large fan base Matthew Broderick that is written and is an avid user of Facebook and around Gershwin songs.“In any cre- Twitter. so comparisons are not exact.But for hard-driving Mr.Myler is not with- ative business, you just never know Other producers will be fighting Tab war the six months ending Sept. 30, out risks. At News of the World, he how audiences are going to react.” for the public’s attention as well.Ben 2011, average weekday paid circula- had a taste for celebrity sex-scandal The spring is offering some hope. Sprecher and his producing partner tion for the print edition of the News stories that in one case led to the pa- Though a handful of productions Louise Forlenza have been working Continued from Page 3 came to 428,847 copies;the Post was per losing a breach-of-privacy suit. could still announce a spring open- on the English-language production the tabloid war interesting again,for down to 408,140. Digital editions And in 2009, he told Britain’s Press ing,so far only 17 shows—including of Rebecca for more than five years. those readers who don’t have their added 166,000 copies for the News Complaints Commission that The Gershwins’Porgy and Bess,which He saw it six years ago in Vienna on noses buried in amNew York or their and 70,000 for the Post, but not all phone hacking at the paper was lim- opened last week—have announced its opening night. Despite not iPads. advertisers count them. ited to one reporter. (He later apol- plans to bow before the season ends speaking a word of German, he was “Colin has a real sense of compe- Both papers have also had suc- ogized for the deception.) May 31, according to the Broadway hooked by the music and visuals,and tition,a real sense of aggression,a real cess with tablet editions and with But Mr.Myler also won praise for League. Last year, 23 productions vowed to bring it to Broadway. sense of what it takes to produce a rel- growing their websites into large an investigation into match-fixing opened during the spring season,in- evant tabloid newspaper in the 21st national properties. Even so, the by Pakistani cricket players. And cluding 10 multimillion-dollar Marketing strategy century,”said Martin Dunn,a former Post reportedly loses millions of dol- former colleagues at the Post de- blockbuster musicals that crammed Mr. Sprecher says Rebecca, based editor in chief of the Daily News. lars every year, and if the News scribe him as a serious journalist who onto stages vying for attention.With on Daphne du Maurier’s novel Messrs. Zuckerman and Myler doesn’t lose money it’s only because knows how to ride a news story. a smaller crop of newcomers, box- about a love triangle, will appeal declined requests for an interview. Mr.Zuckerman keeps cutting costs. He was also mostly rational in his office dollars won’t be spread so thin. most to women between 30 and 60, Prior to Mr. Myler’s arrival, the dealings with other people, unlike “The more musicals there are, the biggest Broadway demographic. News had been going through a kind Next move Mr. Allan, who is generally de- the more spread out the consumer’s To grab their attention, the produc- of lull. The previous editor, Kevin Some observers think that the scribed by former staffers as a cross dollar,” said Stephanie Lee, presi- ers are teaming up with a cosmetics Convey, lasted all of 16 months and economics will eventually force the between Captain Queeg and Satan. dent of Group Sales Box Office, company to launch a perfume tied to was considered out of his depth— two moguls to give up trying to kill Mr. Allan did not respond to re- who added that Evita and Ghost the show.It will be offered to people and certainly not focused on com- each other’s paper and form a joint quests for an interview. have been her biggest sellers so far. who purchase tickets early.“We be- peting with the Post. operating agreement—something If Mr. Myler succeeds at his new Having fewer big shows creates lieve strongly that our show and any The newspaper market is also a they’ve been rumored to be consid- job, insiders say, he could make the less excitement overall for Broadway. show is driven by one thing only— lot less vibrant than it was during ering, off and on, for years. paper a lively but still substantial But the smaller season gives each word of mouth,” Mr. Sprecher said. Mr. Myler’s previous tenure in New “Mort has made a move that at read, and add the upscale Manhat- production more of a chance to grab “We are designing a program to ap- York, which lasted from 2001 to some point has to be responded to,” tan crowd to the News’largely work- market share and score a Tony peal to the early adopters during the 2007.The Post won a costly circula- said Ken Chandler, who has been ing-class, outer-borough audience. Award. As of now, theater wags are first six weeks of operation. After tion battle back then, topping both editor and publisher of the Post “He has the skills and the back- predicting a big Tony win for the that, we’re going to be in the same 700,000 average weekday copies in and is now editor in chief of News- ground to go after and seize parts of once troubled Spider-Man:Turn Off boat as all the other shows.” Ⅲ 2006 and squeaking ahead of the max. “It raises the question of how that New York Post readership,” said the Dark,which officially opened last News by about 11,000, according to long can these two newspapers con- Gregg Birnbaum, a former political June after months of previews. LISTEN to a discussion at the Audit Bureau of Circulations. tinue to operate independently.” editor at the Post who is now a sen- But that sentiment could change CrainsNewYork.com/podcasts ABC rules have gotten stricter, Mr. Zuckerman’s choice of the ior editor at Politico. Ⅲ

44 | Crain’s New York Business | January 16, 2012 Project5:fp template.qxd 1/10/12 3:35 PM Page 1

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HOT JOBS EXECUTIVE INBOX Anne Fisher DIRECTOR OF FINANCE COMPANY Aetna JOB DESCRIPTION Develop and lead financial planning for new businesses in the strategic Selling local diversifications department art globally MOST IMPORTANT TASK Provide financial oversight and THE BROOKLYN MUSEUM support of business sometimes commissions works development activities by well-known artists, then sells CREDENTIALS NEEDED At least those donated pieces and uses 10 years of financial experience; the proceeds to fund museum have an understanding of the activities. But until last year, health-care industry Deputy Director for Development SALARY $160,000-$180,000 Paul Johnson said recently, “we RECRUITER Internal really didn’t have the bandwidth to market those works, by artists DOWNSIDE Working more than like Louise Bourgeois and Sol 40 hours to complete assignments LeWitt, beyond our membership and our board.” UPSIDE Playing key role in Artspace has changed that. shaping company’s strategic An online community, it “has direction marketed those works for us, Aetna offers a range of health which has allowed us to reach insurance products and related the broader collecting world,” services to individuals and Mr. Johnson said. By employer groups. The Hartford, Conn.-based insurer serves collaborating with Artspace, the about 36 million people. Brooklyn Museum has raised —HELEN KWONG funds to add new works to its permanent collections. The list of participants in DIAMOND IN THE sales on Artspace reads like a ROUGH: Steve Lewis’s EXECUTIVE MOVES latest project is for the Who’s Who of the art world, Stash lounge. including the Guggenheim, the Watts Capital Partners: Whitney and Lincoln Center, as David Wilson, 34, was well as top-notch local galleries promoted to chief such as Marianne Boesky and executive at the boutique wealth buck ennis Lehmann Maupin. Since the site management firm. He launched in March 2011, word was previously GOTHAM GIGS has spread: Membership, which director. is free, is already at 30,000-plus. Lot18: Mark Pinney, 57, joined the wine Artspace focuses on “the and gourmet food provider as chief middle market, meaning under financial officer. He was previously chief operating officer at Tremor Video. $30,000,” said Artspace co- DoubleVerify: Matt McLaughlin, 42, Radical by Design founder and Chief Executive joined the online media verification Catherine Levene. Financed company as chief operating officer. He initially by $1.2 million from was previously president of CUnet. If the devil is in the details, Steve Lewis is the exorcist of hospitality angel investors, Artspace Denham Wolf Real Steve collects a commission on each Estate Services Inc.: design. He banishes would-be mishaps with clever touches like the sale. One reason the business Leroy Li, 31, was Lewis stiletto-proof buffalo-hide upholstery—bolstered with a layer of promoted to vice ripstop fabric—at The Darby’s downstairs lounge. ¶ For the past 10 has taken off so quickly, Ms. president of design banishes Levene said, is the “amazing” and construction. He years, he has been an in-demand planner for Manhattan hot spots network of art-world contacts was previously senior would-be like Marquee and Aspen Social Club. Born in Queens, the 58-year- brought on board by co-founder project manager. old designed and operated clubs in the ’80s and ’90s, and served a Christopher Vroom. Silverstein Properties Inc.: Martin S. Collectors have also Burger, 46, was promoted to co-chief mishaps year in prison for a connection to in-club Ecstasy sales. Currently warmed to the site’s habit of executive. He was previously executive living in Williamsburg, Brooklyn, he denies any wrongdoing. ¶ The vice president. with clever commissioning works to help EveryDay With Rachael Ray: Lauren stylish restaurant Butter was his first design contract postprison. His nonprofits. On Jan. 17, for Purcell, 43, joined the Meredith Corp. touches most recent project, the Stash lounge, features diamond-shaped instance, Artspace will offer for publication as editor in chief. She patterns on the walls and floors and glittery surfaces, “so a small sale an exclusive signed print by was previously executive editor of David Salle to benefit New York Self magazine. space looks big,” he said. ¶ Mr. Lewis charges 10% of the project’s contemporary ballet company Interactive Advertising Bureau: David Doty, 59, was promoted to executive vice overall budget, but is flexible during tough times. He’s now Armitage Gone! Dance. president. He was senior vice president converting a Lower East Side pub into a new bar called Elsinore, and continues as chief marketing officer. which will emulate Hamlet’s regal digs. He compares designing bars HAS YOUR COMPANY FOUND a HUB International Northeast: Michael creative way to help the nonprofit Lee, 40, joined the insurance brokerage to designing subway cars. “It has to hold up to wine spills, people world? Tell us at www.crains See EXECUTIVE MOVES on Page 50 getting sick and the deadly high heels,” he said. —ali elkin newyork/execinbox.

January 16, 2012 | Crain’s New York Business | 47 20120116-NEWS--0048-NAT-CCI-CN_-- 1/13/2012 1:53 PM Page 1

RÉSUMÉ REVIEW Construction at a crossroads Is your job search all it could be? We ask the experts. ies for the esplanade portion because I can’t see Congress getting its act Pioneering woman they don’t have the funding, and they together in 2012. Can you? NAME PHILIP JACOBS exec seeks action on don’t anticipate having the funding The atmosphere in Washington is so PROFESSIONAL EXPERIENCE anytime soon.The state will continue toxic right now. Each member of Key New York Real Estate, infrastructure projects to do repairs as needed,but they’re not Congress says a federal transporta- Nov. 2009-present going to do anything beyond that. tion bill is really important, but Associate They just don’t have the money. somehow something happens to BY JEREMY SMERD Generate clients from networking them collectively. events, cold-calling and strategic advertising; Why are so many projects not getting the conduct comparative market analysis; communicate with clients and enise M. Richardson be- money they need? How has the uncertainty affected landlords; interview clients and use computer database to generate lists came the first female We’re going into the third year with construction companies? of properties compatible with clients’ needs and financial resources managing director of the no federal transportation bill. We Everybody is in a holding pattern. General Contractors don’t know the final funding. Half They’re kind of lurching from job to M3 Property Lettings, Sheffield, U.K., March 2007-June 2009 DAssociation of New York, repre- the state [Department of Trans- job.In order to have a stable business, Assistant senting unionized, heavy construc- portation] capital plan is funded you need to know what the outlook Showed prospective tenants properties, conducted property inspec- tion and public-works contractors, with federal money. It’s hard for looks like for work for the next three tions, worked through property inventories, dealt with tenant issues after more than two decades of con- them to put out to five years. But nobody knows be- EDUCATION struction contract management. bids for con- cause everything is being done on a University of Leeds, B.A., geography and social policy, July 2009 She began her struction short-term basis. career in city if they Résumé appears in condensed form. government don’t Are there risks to the MTA capital plan? EXPERT ADVICE MOVERS & and remains a know The big question is how much mon- Philip’s real estate experience should really stand out more on his résumé. SHAKERS keen observer how ey the MTA will get from the feder- In order to achieve this, I would recommend that classes taken in college of New York. much al Railroad Rehabilitation & Im- as well as internships be deleted. Currently, the résumé lists a series of mon- provement Financing program. If tasks, giving the reader no detail on his contributions to the organization. Denise M. The Brooklyn- ey they we don’t get that [$2.2 billion], that He should cite specific accomplishments, such as the number of clients Queens will have. creates a huge problem for the MTA. Richardson he brought in and the amount of revenue that was generated. Expressway is If that loan is not approved for some — career coach, Ready, Set, Launch practically a reason,I think the MTA would have jason levin, death trap. to go back and look at its entire To contact this candidate or to be featured in “Résumé Review,” e-mail us When is that going to be fixed? capital program. It’s problemat- at [email protected]. On the Brooklyn section, the state ic,but the word I’m thinking of just stopped the environmental stud- is “catastrophic.” Ⅲ

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48 | Crain’s New York Business | January 16, 2012 Project20:fp template.qxd 1/10/12 4:53 PM Page 1 20120116-NEWS--0050-NAT-CCI-CN_-- 1/13/2012 1:54 PM Page 1

Coast advertising sales at Trulia. Raines International Inc.: Mary Lee EXECUTIVE MOVES Dechert: Allison Amendolia, 56, was promoted to Harlow Fumai, 34, was managing director of the executive Continued from Page 47 promoted to partner at search firm. She was previously senior JOINING ART WITH TECHNOLOGY firm as vice president. He was previously the law firm. She was vice president. KEN CITRON, 46, joined Christie’s as chief information officer and global and key accounts manager at previously an Leaf Saltzman Manganelli Pfeil & Tendler: international managing director, e-commerce. In these roles, Mr. Citron will be Coface N.A. associate. Gerard Esposito, 63, joined the Dorsey & Whitney: responsible for integrating the auction house’s technology platforms Stuart R. Goldfarb, 41, Linda C. Goldstein, 51, accounting, tax and consulting firm as joined the law firm as partner. He was joined as partner. She partner. He was previously a partner at across its business units globally and will direct the ongoing previously of counsel at Orrick was previously a Rogoff & Co. development of the company’s e-commerce channel. Herrington & Sutcliffe. partner and co-chair of the Louis Miele, 52, was promoted to For the past seven years, Mr. Citron worked at Rodale, Direct Marketing Association: David securities/derivatives litigation and managing partner of the New York where since 2009 he was chief operating officer, chief Evans, 50, joined the marketing enforcement practice at Covington & office. He was previously a partner. information officer and executive vice president, publishing association as senior vice president, Burling. My Damn Channel: Melissa Schneider, 33, operations. The Princeton University graduate received his content and experience. He was Matthew K. Kerfoot, 40, was promoted joined the online entertainment studio previously senior vice president, events, to partner. He was previously counsel. and program distributor as director of M.B.A. from the Wharton School of Business at the at Gerson Lehrman Group. Joshua Y. Milgrim, 33, was promoted to production and lead producer of My University of Pennsylvania. Magnetic: Lou Pine, 37, joined the search partner. He was previously an associate. Damn Channel: Live. She was —CALLIE EIDLER retargeting company as vice president, Michael H. Park, 35, was promoted to previously director of production at sales. He was previously director of East partner. He was previously counsel. Digital Broadcasting Group. Newmark Knight Frank: Matthew T. Leon, 42, was promoted to executive managing director at the real estate services firm. He was previously senior managing director. AOL Inc.: John Reid-Dodick, 50, joined the Internet services and media company as chief people officer. He was previously global head of human resources at Thomson Reuters Markets. J.H. Cohn: Maureen Mattera, 48, joined the accounting and consulting firm as a director in the tax department. She was previously vice president, tax, at Volt Information Sciences Inc. Robert Half International: Michael J. Doud, 37, was promoted to vice president, strategic accounts, at the staffing firm. He was previously vice president. Savvy investors are going places – Arcadio Ocasio II, 34, joined as account executive, strategic accounts. He was namely Indonesia, Vietnam and Turkey. previously senior associate at Korn/Ferry International. Scholastic: Dennis Campagna, 50, joined the children’s publishing, education and You don’t have to be on the trading floor to know that the emerging media company as senior vice president markets are changing the world economy. HSBC has global expertise and and chief accounting officer. He was local solutions, which allow you to access opportunities in the developed, previously regional controller at Clear emerging and soon-to-be emerging markets.1 Channel Communications Inc. Dahlman Rose & Co.: Robert C. Meier, Does your portfolio cover these growing markets? 48, joined the investment bank as Fund an investment account as an HSBC Premier client with a qualifying head of equity sales and trading. He 2 was previously head of equities at balance by March 9, 2012 and receive an Amazon Kindle Fire. Gleacher & Co. Call 866.959.8656 or visit www.hsbcpremierusa.com/diversify. MCG Inc.: Jim Minichiello, 25, joined the technology services firm as director of business development. He was previously strategic account executive at Optimum Lightpath. Integrity Consulting Group: Denise Burke, 48, joined the real estate project HSBC Securities (USA) Inc. management firm as senior associate. She was previously principal at In 1Securities and Annuity products are provided by Registered Representatives and Insurance Agents of HSBC Securities (USA) Inc., member Tandem Project Management Inc. NYSE/FINRA/SIPC, a registered Futures Commission Merchant, a wholly-owned subsidiary of HSBC Markets (USA) Inc. and an indirectly wholly- Drexel Hamilton: Craig Simmons, 49, owned subsidiary of HSBC Holdings plc. In California, HSBC Securities (USA) Inc., conducts insurance business as HSBC Securities Insurance joined the broker-dealer as managing Services. License #: OE67746. Securities and Annuity Products are: Not a deposit or other obligation of the bank or any of its affiliates; director. He was previously a consultant Not FDIC insured or insured by any federal government agency of the United States; Not guaranteed by the bank or any of its affiliates; and subject to investment risk, including possible loss of principal invested. at Armored Wolf. MediaBrix: , 28, All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor. Adam Francisco Eldridge was promoted to director of sales, East, a International investing involves a greater degree of risk and increased volatility that is heightened when investing in emerging or frontiers markets. Foreign securities can be subject to greater risks than U.S. investments, including currency fluctuations, less liquid trading markets, greater price newly created position at the social volatility, political and economic instability, less publicly available information, and changes in tax or currency laws or monetary policy. media advertising platform. He was 2Offer valid in the U.S. to HSBC Premier clients who fund a new or existing HSBC Securities (USA) Inc. Brokerage Account with a minimum of $100,000 previously senior account executive. in new money between January 17, 2012 and March 9, 2012. New to brokerage money is defined as funds or positions not previously held by HSBC Lutheran Augustana Center for Extended Securities (USA) Inc. over the past six consecutive months, and must be in addition to existing investment balances as of the close of business on Care and Rehabilitation: Jeanne Lee, 54, January 13, 2012. Business owners may use their commercial balances to qualify for personal Premier relationship, but these balances cannot be used joined the health care provider as to meet the new money requirements. Offer not valid on insurance products and/or annuities. Qualified customers will be notified via mail within 90 executive director. She was previously days of meeting offer eligibility; notification will include instructions for redeeming gift. Limit one gift per customer and per brokerage account. This director of the health care consulting offer cannot be combined with any other offers or promotions, is nontransferable, good while supplies last. Promotion may be modified or withdrawn at division at Loeb and Troper. any time without notice. Any gift not chosen by June 30, 2012 will be forfeited. The cost of the gift will be reported on IRS Form 1099. —callie eidler Kindle, Kindle Fire, Amazon, and the Amazon Kindle logo are trademarks of Amazon.com, Inc. or its affiliates. Kindle devices are given away on behalf of HSBC. Amazon is not a sponsor of this promotion. EXECUTIVE PROMOTIONS United States persons (including U.S. citizens and residents) are subject to U.S. taxation on their worldwide income and may be subject to tax and other filing obligations with respect to their U.S. and non-U.S. accounts — including, for example, Form TD F 90-22.1 (Report of Foreign Bank and Financial The fastest way to get an announcement into Accounts (“FBAR”)). U.S. persons should consult a tax advisor for more information. Crain’s is to submit online. Fill out the form ©2012 HSBC Securities (USA) Inc. at www.crainsnewyork.com/section/ executive_moves. The Executive Moves column is also available online.

50 | Crain’s New York Business | January 16, 2012 CN014868 12/29/11 10:36 AM Page 1 20120116-NEWS--0052-NAT-CCI-CN_-- 1/13/2012 3:00 PM Page 1

THE HOORAY! OY VEY! THE TABS said new moms and dads were WEEK enraged by Lenox Hill Hospital’s decision to close off a wing— which included the ON THE BUS RIDERS IN STATEN ISLAND can track neonatal intensive their rides on their smartphones, thanks to care unit—while a deal between the borough and the MTA. Beyoncé gave birth to WEB Here’s hoping for a citywide expansion. baby Blue Ivy Carter. JAN. 9-15 GUESS THE SHOW WON’T GO ON. City Opera last week locked out its artists CRAINSNEWYORK.COM from rehearsal after failing to reach a contract agreement with musicians and singers. The struggling opera company wants to eliminate salaries for the chorus and orchestra—paying only for rehearsal and performance time—but the union says that would amount to a 90% pay cut and cost dozens of jobs. Armory plan The first casualty may be the opera’s production of La Traviata, scheduled to begin Feb. 12. ... TALK ABOUT MAKING A STATEMENT. MetLife Inc. will may boost shutter its home mortgage origination operation and cut most of the unit’s 4,300 jobs—just to reduce federal oversight. The move will likely cost the life Bronx insurer more than $90 million, and isn’t the first time MetLife has ducked regulation. Last year, the company said it was exploring a sale of its small banking operations to avoid scrutiny under the Dodd-Frank financial he Bronx, home to overhaul. ... HIT THE ROAD. After four years on the job, Carl Hum will leave the city’s highest his post as president of the Brooklyn Chamber of Commerce at the end of unemployment and the month. Sources say he was asked to move on at the end of 2011 because T buck ennis he was not decisive enough, and “didn’t really lead the charge.” A possible poverty rates, may be getting successor is Randolph Peers, the executive director of Opportunities for a a boost. ¶ Mayor Michael Bloomberg announced that the city is looking for a new developer Better Tomorrow, a Brooklyn-based youth training group. ... NO TIME TO for the 575,000-square-foot Kingsbridge Armory, two years after a proposal by Related Cos. to WASTE FOR CORNELL UNIVERSITY, which must pay the city $10 million by locate a mall there was scrapped when the City Council voted against the plan. ¶ That time, Tuesday for its new Roosevelt Island tech campus. The money includes $5 million for predevelopment and a $5 million security deposit. The Ithaca, Bronx Borough President Ruben Diaz Jr. had insisted on a so-called living-wage mandate, but N.Y.-based school also has until Nov. 10 to submit its Uniform Land Use there was no call for that this time.The city is open to proposals covering a broad range of uses. Review Procedure—any delay will cost the university $1,000 per day—and it Residents of the borough, however, are focused on one thing: creating jobs. ¶ Meanwhile, just a must begin its first phase of construction by 2015. ... THANKS TO EARLY FreshDirect GAINS, THE MAGAZINE INDUSTRY SAW SOME BLACK INK IN 2011. Advertising few miles away, online grocer may be close to finalizing plans to relocate to a revenue eked out an $8 million increase from 2010, to a total of $20.1 500,000-square-foot warehouse near the Harlem River Yards.The Long Island City-based billion. Even so, ad pages dropped 3% for the year, and fourth-quarter ad company, which is also being wooed by New Jersey, could bring with it some 1,000 jobs over revenue fell 5%. —emily laermer the next five years. ¶ The state and city have offered cash and tax breaks worth $112 million, along with 12.6 acres, to keep the food deliverer. CHEAT SHEET Private equity is back in the news as Carlyle Group prepares to go public and scrutiny intensifies of Mitt Romney’s career before York’s business community when state

expanding the office’s powers, which he got into politics.

After the city’s bedrock financial sector tanked in WOULD YOU REMIND ME WHAT PRIVATE EQUITY IS ALL ABOUT AGAIN?

scrambling for the city’s blessing to build a campus Crain’s Private equity firms generally buy companies with a lot of borrowed money past Silicon Valley as the world’s leading tech center, and then—they hope—make them perform better.There’s a vigorous city’s offer of land on Roosevelt Island, Governors It’s enough to make a New Yorker look debate nowadays over whether Mr. Romney did this successfully while he worked at Bain Capital’s private equity arm, which he co-founded. When successful, leveraged buyouts can help rescue ailing companies, save jobs— and make private equity execs rich. HOW RICH, EXACTLY? The three co-founders of Carlyle Group last week disclosed that they pocketed more than $400 million in income last year.This income, which is generated by selling companies for more than their purchase price, is taxed at the capital gains rate of 15% rather than as ordinary income, where the rate is 35% for the highest earners. Carlyle Group’s effective tax rate in 2010 was a bit more than 1%.The rate at Goldman Sachs, which does private equity investing and many other things, was 33%. DOES PRIVATE EQUITY MAKE COMPANIES BETTER? That’s the $64 billion question. Last year, an academic study of 598 private equity funds that operated between 1984 and 2008 found that their weighted-average returns to outside investors were about 1.3 times the returns generated by the S&P 500.That’s a significant difference, and the benefits are enjoyed not only by private equity managers, but by investors in their funds.Those investors include many of the nation’s largest pension plans, which help teachers, police officers and others enjoy a comfortable retirement. SO WHAT’S ALL THE FUSS, THEN? Private equity deals can carry huge costs for employees of target companies. Another academic study last year showed that, on average, private equity-backed companies shed more jobs than other firms in the first two years after an LBO, even after accounting for divestitures and other changes.That’s a lot of stress to place on a workforce. —aaron elstein

52 | Crain’s New York Business | January 16, 2012 Project5:fp template.qxd 1/10/12 3:38 PM Page 1

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For more information please contact us at 212-445-1200 20120116-NEWS--0054-NAT-CCI-CN_-- 1/13/2012 1:54 PM Page 1 chemex / INSATIABLE CRITIC Gael Greene Place, from 8 a.m. to 10:30 a.m.The flickr.com THE cost is $10 for chamber members and $20 for nonmembers in advance, or $5 additional for all at the door.To get more information and to register, visit WEEK www.manhattancc.org. WORKSHOPS The insatiable AHEAD TUESDAY, JANUARY 24 Join General Assembly for its BUSINESS MODEL WORKSHOP. Instructor Jacob JAN. 23-29 Cohen will focus the discussion on highs of the year understanding consumer needs, homing in on internal resources and CONFERENCES AND external partners, and examining cost From The Dutch to Qi SEMINARS versus revenue. The workshop will take MONDAY, JANUARY 23 place at 902 Broadway, fourth floor, Bangkok, favorite Join TEDxBROADWAY for a conference from 1 p.m. to 5 p.m. The cost to attend WHAT SHE’S about the future of Broadway.The is $150. To get more information and to WEARING restaurants of 2011 event will feature presentations by register, visit www.generalassemb.ly. entrepreneurs, producers, artists and here am I eating business experts, including Randy CULTURAL EVENTS JANA MATHESON, creative director now? Of all the Weiner, producer of Sleep No More, and SATURDAY, JANUARY 28 at 49-year-old handbag house restaurants I took a a video presentation starring Neil The MUSEUM OF THE CITY OF NEW YORK Judith Leiber, is set for winter with bite of in 2011, these Patrick Harris. The event will take presents “The Greatest Grid: The fur vests, tailored cropped areW my favorites. place at New World Stages, 340 W. Master Plan of Manhattan, 1811- trousers and ballet flats. For 50th St., from noon to 5p.m. Tickets 2011,” an exhibit celebrating the 200th At Andrew Carmellini’s The handbags, she’s keen on buck ennis are $100. To get more information and anniversary of the commissioners’ plan Dutch, we swoon over the small oyster JEWELED BROOCH: Baby scallops at Ciano to purchase tickets, visit that established the city’s famous street exotic skins in a diverse slider: fat, briny, delicately fried, www.goldstar.com/tedxbroadway. grid. The exhibit, which runs through selection of colors. voluptuous. The cakey cornbread, April 15, will feature an original hand- “It takes python one step smoky homemade ricotta-plumped salad—all dark meat—is my favorite. drawn map of New York’s planned further, it’s so pretty and FIXED-INCOME ravioli and the Asian White Boy ribs 529 Hudson St., (212) 992-9700. TabbFORUM presents streets, as well as other rare maps, amazing,” said Ms. Matheson, invoke satisfied mewings. Soon we’re Daniel Boulud advances his MARKETS 2012: CHANGES AHEAD. photographs and manuscripts. The STAYING AHEAD, a panel discussion museum is located at 1220 Fifth Ave. who has also worked at Badgley back for fabulous steak tartare, the conquest of Lincoln Center Gold Mischka and Banana Republic. Barrio tripe cooked in beer with avo- Coast dining with luscious Mediter- featuring keynote speaker Larry and is open from 10 a.m. to 6 p.m. Hatheway, chief economist and chief Suggested admission for adults is $10. She noted that tanneries in Italy cado and lamb neck molé,seduced by ranean reveries at good-looking, re- strategist at UBS. The event will feature For information, visit www.mcny.org. have developed foil treatments the chef ’s aggressive slant on Ameri- laxed Boulud Sud.I like to sit at the bar industry experts discussing changes in and hand painting for bags that can grub.Of course,I must have Kier- sharing small plates of sea urchin and the trading of credit and rates markets, BROOKLYN PHILHARMONIC are both gaining in popularity. an Baldwin’s daily pie, full-force crab tartine, chickpea and eggplant and the effects that economic and The presents “Lots of sparkly bits are good,” rhubarb with rhubarb jam, scattered falafel or tabbouleh two ways, then regulatory events will have on these violinist Deborah Buck in recital with she added. kumquats and buttermilk lime sher- split a pasta with my guy after projects going forward. The event will pianist Molly Morkoski featuring During the day and on bet.131 Sullivan St.,(212) 677-6200. a movie. 20 W. 64th St., (212) take place at The Times Center, 242 W. music by Brahms, Szymanowski and It didn’t bother me at all that 595-1313.Even more often,we grab 41st St., from noon to 7 p.m., followed Grieg. The recital will take place at the weekends, the Battery Park City Ai Fiori by a cocktail reception. Tickets are Brooklyn Museum, 200 Eastern resident tones things down with Michael White’s sprawling a spicy merguez sausage sandwich $395. To get more information, Parkway, at 2 p.m. Tickets are $10 for dining room in the Setai Fifth Av- with harissa and tzatziki for a pit- a small bag with a long, cross- including a detailed agenda, and to museum members and $15 for body strap, or a tailored shoulder enue Hotel might be regarded as se- tance at the nearby Épicerie Boulud. purchase tickets, visit nonmembers. To purchase tickets, call date. Scallops alternating with cel- 1900 Broadway, (212) 595-9606. www.fixedincometrading- (646) 397-2765 or visit www.bphil.org. bag in a crocodile print. “A pop of ery root smeared with marrow and The scene is the magnet at esearch.eventbrite.com. —suzanne panara bold color with neutrals seems to bits of black truffle lined up in a cra- Red Rooster, where chef Marcus feel fresh right now,” she said. dle of bone get my attention at once. Samuelsson’s menu is a lot like WEDNESDAY, JANUARY 25 To view Crain’s classified events listings, —ADRIANNE PASQUARELLI ACG New York invites you to its go to Fluke crudo with sea urchin and Samuelsson himself:a little Swedish, FOURTH ANNUAL HEALTH CARE dots of sturgeon roe play to a duo of a little soulful, a little Africa. I loved CONFERENCE. The conference will passions.With chef de cuisine Chris the tomato jam alongside sweet provide attendees with an opportunity Jaeckle’s abrupt exit, I’m hoping his cornbread, the oxtails, mac ’n’ cheese to meet leading health care private replacement has mastered house- that sticks to the iron pan, and crusty equity firms and senior health care made trofie in a tangle of cuttlefish fried chicken with a scent of its but- professionals, and learn the latest news and scallops dusted with espelette- termilk bath and a hot peppery glaze. from the health care market. The peppered breadcrumbs. 400 Fifth 310 Lenox Ave., (212) 792-9001. conference will take place at the Ave., (212) 613-8660. Astonishing tastes and unex- Metropolitan Club, 1 E. 60th St., from If it were just Shea Gallante’s pected juxtapositions of flavors have 5 p.m. to 9 p.m. The cost to attend is Wong $225 for ACG members and $300 for miraculous pastas alone, and the feel emerged at from Simpson nonmembers. To get more information of being in a small Tuscan town Wong’s extended tour of Southeast and to register, visit somewhere between Florence and Asia. I must have the shrimp fritters www.acg.org/nyc/events. Siena, that would be reason enough with a last-minute pour of preserved to love Ciano. But add in the perenni- fish sauce, and the egg foo yong. WEDNESDAY, JANUARY 25 al $20.12 three-course lunch, the Bonito flakes move as if alive atop a NEW YORK ENTERPRISE TECHNOLOGY sommelier’s inspired policy of open- pot of wild mushrooms with an egg MEETUP invites you to its inaugural ing any wine on the list and charging on top.Pastry chef Judy Chen,alum- event for technologists, entrepreneurs for a half-bottle,and the captain slic- na of Daniel, finds the alchemy to and investors. The event will highlight composite image: buck ennis innovations in the enterprise world and ing warm bread and rich focaccia in make duck ice cream quite wonder- will feature demonstrations by four front of the fireplace.Start with cros- ful. 7 Cornelia St., (212) 989-3399. technology companies. The event will PICK OF THE WEEK tini, whipped chicken-liver mousse, We’ve come to Qi Bangkok Eatery take place at 1114 Sixth Ave., at 7p.m. for sure. Baby scallops arranged like to sample the savory Thai cooking of The cost to attend is $5. To get more THE YOUNG PROFESSIONALS COMMITTEE of the greater a jeweled brooch in season might fol- pastry wizard Pichet Ong. What a information and to purchase tickets, New York City affliate of Susan G. Komen for the Cure hosts its low.And consider remarkable pastas: happy shock. This is the best green visit www.meetup.com/ny-enterprise- fourth annual Painting Wall Street Pink event. The event kicks off home-style cortecce with baby octo- papaya salad I’ve ever tasted, the tech/events/44527062. pus, pancetta, fennel and garlicky dressing a glaze of sweet, hot, sour with a cocktail reception at the New York Stock Exchange, at Wall FRIDAY, JANUARY 27 breadcrumbs or pappardelle with and bitter.Ruffled pan-fried kee mao The Manhattan Chamber of and Broad streets, from 7 p.m. to 9 p.m., followed by an after-party duck Bolognese and pecorino. 45 E. noodles in a spicy basil sauce, Commerce presents a transportation at Cipriani, 55 Wall St., featuring cocktails, a light dinner, a silent 22nd St., (212) 982-8422. charcoal-grilled heads-on prawns transformation series event: ELECTRIC I’ve been a fan of RedFarm’s dim napped in fish sauce with a torrid gar- VEHICLES AND NYC. The panel disscusion auction and dancing, from 9 p.m. to midnight. Ticket prices start at sum master Joe Ng since I first tasted licky burn, five-spice honey-glazed will look at the electronic vehicle market $125. To purchase tickets, call (212) 461-6195 or visit a few hundred of the more than 1,000 ribs: I am wowed by the parade— and the viability of attracting key parts www.komennyc.org/ypcevent. dumplings and tidbits in his reper- even a torrid red tumeric pork curry of the value chain to the city.The event toire in Brooklyn. Fill up here on almost too hot for me is irresistible. will take place at Con Edison, 4 Irving dumplings, filet mignon tarts, kung 675 Eighth Ave., (212) 247-8991. pao pork and chicken triangles. And MON. TUES. WED. THURS. FRI. SAT. SUN. don’t ignore Katz’s pastrami egg roll. Copyright © 2012 by Gael Greene.Syndicated by 1.23 1.24 1.25 1.26 1.27 1.28 1.29 It’s fabulous. The mile-high chicken www.insatiable-critic.com.

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