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0 71486 01068 5 06 VOL. XXXI,NO.6 NEWSPAPER saw and now hope to conquer the very upstarts saw andnowhopetoconquerthevery that felled their once-mighty mediaempires that felledtheironce-mighty CRAIN’S WWW.CRAINSNEWYORK.COM Corporate venture capitalistscame, Corporate venture E OKBUSINESS YORK NEW BY MATTHEW FLAMM BY MATTHEW PAGE 19 your biztomakeabillion BUSINESS REPORT SMALL How toscale ® P. 11 P. PAGE 21 booze empire and aburgeoning ONE BLOCK ONE GUY cold cashstandinway but ownershipissues, huge Queensrailyard, Mayor, guv, otherseye Transit. Ownership ofthesiteisnoth- Ownership Transit. theLIRR Jersey andNew Amtrak, usedby tracks ofactivetrain labyrinth thatmusta platform bebuiltover a Yards atSunnyside rises willstandon alotofvisionsare“But nightmares.” Management atNew York University. Center for Transportation Policy and director oftheRudin Moss, Mitchell said politicians tohavevisions,” take alotoftimeandmoney. It’s gonna lotisclear: situated vacant best- pens nextonthecity’s largest, onethingaboutwhathap- where only second-most-populous borough. flankofthecity’son thewestern foryearsasamassivescar have decried and others beuntangled,” will never likens to “a giantbowl ofspaghettithat thatonereal estateinsider property over200-acre aroughly gilded cloud amongotherthings. tion center, conven- money-spinning a hugenew spotfor Doctoroff seesitastheperfect Mayor Daniel Deputy ministration Bloombergad- former Meanwhile, ofmidtown. Roadintotheheart Rail Island theLong tunnels thatwillbring the for anotherkindofgamechanger: thestagingarea theproperty He called Cuomo. Andrew saidGov. Hold on, build 11,250affordableapartments. proposal to described “game changer” forhisself- ground zero it became anobscure plotinQueens. same prize: for thefuture onthe hastheireyes withbigideas likeeverybody Seems AND JOEANUTA BY ANDREWJ.HAWKINS land grab for major on track Sunnyside For openers, whatever ultimately whatever For openers, for important thinkit’s“I very Welcome Yards, toSunnyside thosedreamsAll now hanglikea For Mayor deBlasiolastweek, Bill

Largest executive Largest

recruiters recruiters FEBRUARY 9-15, 2015 PRICE:$3.00 See SUNNYSIDEonPage20 THE LIST P. 13 ® 20150209-NEWS--0002-NAT-CCI-CN_-- 2/6/2015 7:41 PM Page 1

REPORTER’S NOTE

The quiet man FYICRAINSNEWYORK.COM

Meet the new speaker, same as the old speaker. Carl Heastie, who Scandals may finally was elected last Tuesday to one of the most powerful posts in state spur ethics reform government, is described by his he politician at the center of Assembly colleagues as a “tough one of the most bizarre negotiator,” “shrewd” and corruption plots in New York “sphinxlike.” Such adjectives were Andrew J. Hawkins T history was convicted by a jury last frequently used to describe the week. Now, with former Queens state man Mr. Heastie replaced, Sen. Malcolm Smith (pictured) facing Sheldon Silver. “He’s very cagey,” Assemblyman up to 45 years behind bars and Joseph Lentol said of Mr. Heastie. “Believe it or Assembly Speaker Sheldon Silver not, he’s like Shelly in that way.” Robert

stepping down as speaker following ap images Kappstatter, former Bronx bureau chief for the his arrest in a separate case, the time Daily News (and my former boss), nicknamed Mr. may finally be ripe for ethics reform in Heastie “The Silent One,” and Assemblyman Albany. ¶ Mr. Smith, a Democrat, was found to have bribed Republican county officials so he Jeffrey Dinowitz joked, “His favorite comment to could run as a GOP candidate in the 2013 mayoral race.The U.S. attorney behind the Smith and the press is ‘No comment.’ ” Truth is, Mr. Heastie Silver prosecutions, Preet Bharara, said last month that more corruption cases are on the way. ¶ also has said that about himself. When he does New Assembly Speaker Carl Heastie has vowed to create a new Office of Ethics and Compliance have something to say, it’s almost always brief. My and to support limits on outside income and fuller disclosure of that income. Gov. Andrew Cuomo last one-on-one encounter with the Bronx says he won’t approve the next state budget, due March 31, without passage of a five-point ethics assemblyman was Election Day 2013. A solo, reform, and Mr. Heastie said he does not see the demand being a problem. Senate Republicans, somewhat lonely-looking Mr. Heastie stood off to pleased that public financing of campaigns was not among the governor’s five points, said they the side at the cavernous Park Slope Armory while would consider his proposal. —chris bragg revelers and reporters dashed about in preparation for Bill de Blasio’s victory speech. A Heastie press FATAL CRASH. The National Trans- fornia, where his family lives. He will HOORAY! aide pulled me aside and urged me to interview his portation Safety Board is investigat- be replaced by Press Secretary Phil ing last week’s collision between a Walzak. … NO MORE PITS. After TWO BALD boss, who at the time also was the Bronx Metro-North train and a Mercedes- nearly 150 years, futures-market op- EAGLES have Democratic Party leader. Asked for his reaction to a Benz SUV that was on the tracks.Six erator CME Group Inc. is closing built a nest in New York City— Democrat’s winning the mayoralty for the first time people were killed. The victims in- most of its trading pits in New York the first time cluded the car’s driver,a curator at the and Chicago by July 2. The S&P that has in 20 years, Mr. Heastie chose his words carefully. Metropolitan Museum of Art and a futures market will remain at the happened in at “I think it’s good that the most Democratic city in least 100 managing director at a finance firm. CME. … LOSING CACHET. Women’s years. the nation once again has a Democratic mayor.” … PFIZER BETS BIG. The pharmaceu- clothing retailer Caché, which hasn’t And then ... silence. tical giant acquired Hospira Inc., an been profitable since 2011, filed for ap images injectable-drugs maker, for $15.2 Chapter 11 bankruptcy protection.It billion. Pfizer is hoping that the plans to close some of its 218 stores OY VEY! generic-drug knockoffs that Hospira and renegotiate leases. … MACY’S THE 7 TRAIN was halted for hours after THIS WEEK IN CRAIN’S produces will be a lucrative source of GLAMS UP. Macy’s bagged Bluemer- an umbrella fell on the third rail and the revenue. … HOSPITALS cury Inc. for $210 million to help tracks iced over while service was down. IN THE BOROUGHS------3 CONSOLIDATE. Mon- boost the depart- tefiore Medical Cen- ment-store chain’s OY VEY IN THE MARKETS------4 ‘I think we ter will assume opera- customer base. Blue- THE INSIDER ------5 tional control of finally mercury, a Washing- OPINION------8 Yeshiva University’s ton, D.C.-based lux- Albert Einstein Col- understand ury beauty and spa STEVE HINDY------9 lege of Medicine, each other’ company,operates 60 GREG DAVID ------9 almost a year after the —Mayor Bill de Blasio to stores in 18 states. … hospital made an Staten Island Chuck at the MAGAZINE FOLDS. op-ed, he suggested ways to protect REAL ESTATE------10 undisclosed financial city’s Groundhog Day Yue, a quarterly pub- consumer privacy and ensure that In- REPORT: investment in the event, during which the lication that targeted ternet service is available in remote university. Mean- mayor did not handle the wealthy Chinese vis- areas.His proposal is subject to a vote SMALL BUSINESS------11 while, North Shore- unpredictable rodent itors and New York- on Feb. 26. … BOOK DRAMA. Pub- THE LIST ------13 LIJ is in talks to ac- ers, has folded after lisher HarperCollins was accused of quire Maimonides Medical Center. four years. Yue was a joint venture be- planning to publish a new novel by GOTHAM GIGS CLASSIFIEDS ------16 The deal would mark North Shore- tween the Observer Media Group Harper Lee, the 88-year-old author From Broadway to the FOR THE RECORD------18 LIJ’s entrance into Brooklyn. … and China Happenings, a multime- of To Kill a Mockingbird, without her Oscars, production designer MAYOR’S AIDE DEPARTS. Peter dia and consulting agency. … NET consent. HarperCollins refuted the NEW YORK, NEW YORK ------Derek McLane likes to make 21 Ragone,Mayor Bill de Blasio’s senior NEUTRALITY. Federal Communica- rumor, quoting Ms. Lee, whose a scene. P. 6 SOURCE LUNCH------22 adviser, who is credited with shaping tions Commission Chairman Tom health is failing, as saying she is the mayor’s public image, is leaving Wheeler said the Web should be reg- “happy as hell.” the administration to move to Cali- ulated as a public utility. In a Wired —emily laermer CORRECTION Michael Munoz was promoted to partner at Golenbock Eiseman Assor Bell & Peskoe. The name of the law firm was misspelled in the Jan. 26 Executive Moves.

vol. xxxi, no. 6, february 9, 2015—Crain’s New York Business (issn 8756-789x) is STORIES TO WATCH THIS WEEK published weekly, except for double issues the weeks of June 29, July 13, July 27, Aug. 10, Aug. 24 and Dec. 21, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, N.Y., and additional mailing offices. Post- Feb. 9: First public Feb. 12: Citi Bike Feb. 13: Google, Feb. 13: NBA All- master: Send address changes to: Crain’s New York Business, Circulation Department, 1155 hearing on banks expansion-planning Mattel to unveil Star Game events, Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (877) 824-9379.Fax (313) 446-6777.$3.00 a copy,$99.95 one that hold city workshop on new product at hosted at MSG and year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2015 by Crain Communications Inc. All rights reserved. money Upper East Side NYC’s Toy Fair Barclays Center, 2015 begin.

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IN THE BOROUGHS Eateries at the tipping point QUEENS Restaurateurs Housing consider doing away with gratuity as state gains leave weighs wage hike many cold BY LISA FICKENSCHER

Diners at Tom Colicchio’s swanky Elmhurst population restaurants in the city could get a big surprise on their bill if the famous rise spurs surge in chef follows through on his desire to construction, costs eliminate tipping—and raise his menu prices by about 22%. Mr. Colicchio has long wanted BY KERRY MURTHA to make this change,but a legislative directive may be the spark he needs. Elmhurst, a quiet working-class The restaurant industry is facing area in western Queens, has seen a big hike in its labor costs next year major changes in recent years. if state officials adopt recent recom- Beginning in the 1970s,a wave of mendations by the Wage Board to Latin American and, later, Chinese increase the so-called tip credit— immigrants began settling in the the hourly rate that tipped workers once predominantly Italian and can be paid. Pay could rise by as Jewish neighborhood. Today, it much as $3.50 an hour, to a base stands as one of the most interna- wage of $8.50, by Dec. 31, 2015. tional areas in the city, one where Gov. Andrew Cuomo has sig- 70% of the heads of households are naled that he supports an increase, foreign-born, according to the 2010 giving the proposal weight. Any Census. In the process, Elmhurst’s changes could result in significantly population has become one of the higher menu prices and alter the way city’s fastest-growing, with more New Yorkers tip at restaurants. The than 110,000 residents today, up proposition has also sparked a heat- from 72,000 in 1980. ed debate over the disparity in Now Elmhurst finds itself in the restaurant compensation, with midst of another major shift—an servers typically earning twice as economic one. Developers are much as the kitchen staff. flooding in, erecting rental apart- Some argue that the industry ment buildings and even condo- should switch to the European miniums whose units few existing model, where a service charge is in- LIN AUNG KO, a residents can afford to live in. cluded in the bill and all workers’ waiter at Riki, which As of 2013, apartments in new base pay is higher. Only a handful of two years ago developments—many of them con- restaurants in the U.S.impose an au- eliminated tipping dos—sold for 60% more than the tomatic service charge, including after a lawsuit average price of existing units, ac- Per Se,chef Thomas Keller’s upscale cording to StreetEasy. Rents in

See RESTAURANT on Page 20 buck ennis See ELMHURST on Page 15 Who’d pass up 10 years of no STATS AND THE CITY by Nicholas Wells STRIKE A POSE: New York Fashion Week kicks off Wednesday night. The nine- day event, which will host about 250,000 attendees, is expected to generate taxes? Everyone, apparently $887 million for the city economy. TOTAL NUMBER of shows REVENUE in Centerpiece of guv’s “Start-Up NY is kind of an open State officials admit that upstate 223scheduled for the nine-day event $7.4Bfiscal 2014 joke in the city,” said a Manhattan- was the initial focus of the program, for Ralph Lauren economic plan fails based venture capitalist with knowl- and the rules reflect that. But they YEAR Fashion Week debuted in Corp., one of the edge of the program. “We all know claim that the city and its emergent New York. Originally called largest designers to inspire NYC firms it’s designed to bring biotech firms tech scene are now very much on 1943“Press Week,” it was organized away from in New York, up it’s meant to help to Buffalo, so we tend to ignore it.” their radar. Paris because of WWII 7% from 2013 “We want to be in business with city tech companies like we are up- PORTION of the BY THORNTON MCENERY ‘Start-Up NY state,” said a senior state develop- 21.3%4,621 models 20K is kind of an ment official who spoke on condi- in the September 2014 APPROXIMATE Gov. Andrew Cuomo has made tion of anonymity. “And we Fashion Week who were of NUMBER of espressos Start-Up NY a centerpiece of his understand that the practical reali- color consumed by attendees economic agenda, and for good rea- open joke ties of New York City are very dif- during last September’s son: A 10-year exemption from ferent from Rochester.” Fashion Week; 240 bottles property,sales and state income tax- in the city’ To participate in Start-Up NY, of Champagne were es seems like a deal no entrepreneur companies must move to the state or -56.4% popped could pass up. expand within it. They also must DECREASE in NYC clothing Sure enough, the program ap- Sources: Mercedes-Benz partner with a college or university manufacturers Fashion Week, Council of pears to be thriving in upstate and that is participating in the program Fashion Designers of America, from 2002 to Salon.com, Jezebel.com, western New York. But in Silicon Of the 73 companies enrolled in and is academically aligned with the 2012, to 970 School of Style, Rep. Carolyn Alley,where high taxes and a lack of Start-Up NY,only seven are in New company’s business model.(All sev- Maloney’s office, companies U.S. Census, affordable office space notoriously York City, a fact that jibes with the en city-based Start-Up NY compa- Ralph Lauren Corp. constrain growth—the program is pervasive sentiment among Big Ap- nies are biotech firms linked with newscom either unknown or met with dismis- ple tech cognoscenti that Albany SUNY Downstate Medical Center ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY sive shrugs. does not have them in mind. See START-UP on Page 19

February 9, 2015 | Crain’s New York Business | 3 P004_CN_20150209.qxp 2/6/2015 7:49 PM Page 1 IN THE Mayor wants to know how MARKETS sick-leave law is treating you by Aaron Elstein

Advisory panel Mak of the Brooklyn Chinese- idents, as well as Ms. Abreu and American Association; Jennifer Messrs. Mak and Rigie, could be to meet twice a year Jones Austin of the Federation of considered outside the mayor’s cir- Protestant Welfare Agencies (and a cle of influence. to gauge biz impact former de Blasio transition-team Last week, Mr. Rigie emailed his leader); Manhattan Borough Presi- members about participation on the of controversial law dent Gale Brewer; and two mem- advisory board. bers of the City Council: Robert “A major role of The Alliance’s BY ANDREW J. HAWKINS Cornegy, chairman of the Small participation on the Advisory Business Committee, and Rafael Council is to ensure that the restau- Almost a year after the expansion of Espinal, chairman of the Consumer rant and nightlife community’s in- the paid-sick-days law, the de Bla- Affairs Committee. valuable input and insights are con- sio administration is forming an ad- sidered, as the law continues to be visory panel of business leaders to implemented in a way that is easiest report on its impact. as possible for businesses to com- The panel,which will meet twice ply,” he wrote. a year, is set to hold its first meeting The paid-sick-days law requires March 3,said Julie Menin,commis- employers with five or more workers sioner of the Department of Con- to provide each employee up to 40

sumer Affairs, which oversees com- hours of paid time off a year. Those gettyimages pliance of the law. with less than five workers are re- “The purpose of it is to continu- quired to provide unpaid time off. ously solicit input and feedback,” The city ended 2014 without is- Trying to discredit she explained. But the panel has a suing any fines in connection with fair number of de Blasio administra- violations of the sick-days law. But tion allies. since then,“a small amount of fines” Members include the presidents buck ennis have been sent out, Ms. Menin said. a market oligopoly JULIE MENIN, commissioner of the Dept. of of the five boroughs’ chambers of Consumer Affairs, will chair the group. Of the 396 complaints received commerce—Jack Friedman of by her agency in connection to the Queens, Carlo Scissura of Brook- paid-sick-leave law, only five “no- t the dawn of the financial crisis, Warren Buffett was lyn, Nancy Ploeger of Manhattan, The one business owner, Esmer- tices of hearings” have been issued, Moody’s Corp. Leonard Caro of the Bronx, and alda Valencia, owner of Esmeralda’s she said. The rest have been settled ’s largest shareholder. But when the Linda Baran of Staten Island—as Restaurant in Bushwick, Brooklyn, through mediation. famed credit-rating agency took a well-deserved well as Quenia Abreu, president of A is a supporter of the law.Her restau- “We always want to try to medi- pounding for slapping AAA labels on scads of junk the Women’s Chamber of Com- rant hosted Mr. Bill de Blasio’s an- ate first,” she said. mortgages, it seemed only a matter of time before Mr. merce;Alison Hirsh,political direc- nouncement of the expansion of the Business owners can share their tor of union local 32BJ; Andrew mandate to businesses with as few as thoughts with Ms. Menin’s agency Buffett would abandon ship. Rigie of the Hospitality Alliance, five employees. at [email protected] or Although Mr. Buffett has cut his holdings by about half, which represents restaurants;Paul P. The five borough chamber pres- by calling 311. Ⅲ he’s still Moody’s second-largest shareholder. It’s now clear why he chose to stick it out: Business is better than ever in the credit-rating business.Thanks to ultra-low interest rates spurring a flood of corporate and government debt issuance,

Moody’s 2014 net profits of $1 bil- a decade ago warned of structural lion were 25% higher than its best financial problems at WorldCom year last decade. At $98 a share, its long before the big three figured it stock price is also about 25% above out.Yet these smaller players strug- NOW AVAILABLE last decade’s high-water mark. gle to get attention. What’s more surprising is that The fault, it appears, lies not in THE big investors still care about opin- our stars but rather in our institu- ions from Moody’s and the other tional investors. They have guide- major credit rater, Standard & Poor’s, lines stating they can only buy which last week agreed to pay $1.4 bonds rated by at least one of the big billion to settle a Justice Depart- three ratings firms. According to a ment lawsuit alleging it defrauded letter last year to the SEC from 2015 investors by issuing inflated ratings Kroll,only 11 institutions have got- during the housing bubble. ten around to making it a policy to Yet investors just can’t quit these consider the opinions of others. guys.A December report by the Se- Here’s a shout-out to two of curities and Exchange Commis- them: the New York State Teachers Re- BOOK sion showed the combined market tirement System, which manages share of Moody’s, S&P and Fitch $108 billion, and the Employees Re- Ratings in 2013 was 94.5%.In 2010, tirement System of Texas, which over- it was 94.6%. sees $26 billion. Well done. The continued stranglehold Pension and mutual funds, and certainly isn’t about lack of compe- insurance companies globally held OF tition or incompetence among $83 trillion in assets in 2012, ac- those competitors. Several new cording to the Organization for firms, like Kroll Bond Rating Agency, Economic Cooperation and De- have sprouted up in recent years. velopment. These parties have There are also worthy older ones, some work to do, if they’re to listen LISTS such as Egan-Jones, which more than to anyone but the usual suspects. Ⅲ

GOLDMAN SACHS’ rank in the Purchase the Print or Excel edition at: latest Harris Poll examining the 100 reputations of the “most CrainsNewYork.com/DataCenter visible” U.S. companies. Goldman finished last in the survey, which polled 27,278 people. Immediately ahead of it were AIG, Dish Network and

buck ennis Monsanto.

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CARL HEASTIE’S campaign fund got THE $26,600 from the trial lawyers’ lobby. Mr.Heastie chaired the Assembly Labor Committee, a post typically INSIDER held by strong supporters of unions. by Chris Bragg He sponsored the Wage Theft Pre- vention Act, which passed in 2010 over business groups’ objections. Mr. Heastie’s spokesman also Reading tea leaves on new speaker noted his sponsorship of a bill to let domestic-violence victims break efore Carl Heastie’s election as Assembly speaker last their lease if their home is unsafe. week, the Bronx lawmaker’s biggest accomplishment in Mr. Heastie originally voted against gay marriage, but supported BAlbany may have been passing a 2012 bill creating a the marriage-equality bill that fleet of outer-borough green taxis.The legislation’s primary passed in 2011.

opponent was the Metropolitan Taxi Cab Board of Trade, a ap images Before his election to the Assem- yellow-cab group that saw the new taxis as a major threat. bly in 2000, Mr. Heastie, now 47, Lawyers Association, a powerful “We’re just pleased that the new was a budget analyst in the city Yet one of the group’s lobbyists, interest loans.Bill proponents donat- group and a bane of business inter- speaker of the Assembly is not on the comptroller’s office.Like Mr.Silver, Michael Woloz, recalls Mr.Heastie be- ed $10,000 to the Bronx Democratic ests for its opposition to tort reform. payroll of the trial lawyers,” Mr. he has a reputation as someone who ing an honest broker who made the Party that Mr. Heastie led; Mr. One of that group’s top tasks will Stebbins said. But the lawyers’ lobby does more listening than speaking, bill fairer to yellow cabs, despite Mr. Heastie has said that had no effect on be to get Mr.Heastie to block reform has made 26 contributions totaling and whose opinions can seem in- Woloz’s group having had little pri- him. Gov. Andrew Cuomo’s chief bank- of the state’s 129-year-old scaffold $26,600 to Mr. Heastie’s campaign scrutable. He is considered media- or relationship with the lawmaker. ing regulator, Benjamin Lawsky, helped law, as the last speaker, Sheldon Silver, fund since 2000. A spokesman for shy, but is known for keeping his He said Mr.Heastie made a point of kill the bill, arguing that poor people did for years.But prosecutors say Mr. Mr. Heastie has said he will make word, which helped him to rapidly citing his business background. would be sucked into debt. Silver had a financial incentive to do decisions solely on the merits. line up votes for the speakership. “I remember he told us very ear- Mr. Heastie gave up his Bronx so:a $120,000 salary and several mil- Josie Duffy of the Center for Pop- “I’ve always been a coalition ly on in the process that he had an Democratic chairmanship when he lion dollars in fees from a personal- ular Democracy, part of a coalition builder, even when I was county M.B.A. from Baruch,” Mr. Woloz gained the speakership,but eyes will injury law firm. A scaffold-law re- opposing scaffold-law reform, said, chair in the Bronx,”Mr.Heastie said said. “We took that to mean he was be trained on the operatives who form bill is carried by Assemblyman “We appreciate the speaker’s past at a press conference last week.“I like coming not from a place of activism, have long been close to the county Joseph Morelle, who lost the speaker’s support for worker safety.” to hear other, differing opinions.” Ⅲ but from a place of pragmatism.” leader. One is Stanley Schlein, who is race to Mr. Heastie. The business community hopes often described as a “political fixer” Mr.Heastie’s position on the issue Mr. Heastie, a former city budget and whose ethical troubles include is not clear,according to Tom Stebbins, QUOTE OF THE WEEK: ‘The give-and-take of analyst, will have that approach as being fined $15,000 for using city executive director of the Lawsuit Re- speaker.His history,such as his taxi- resources for his law practice. form Alliance of New York. He the political process should not be the bill experience, offers some clues. Mr. Heastie’s right-hand man, sponsored neither Mr. Morelle’s bill Though not a prodigious bill lobbyist and consultant Patrick Jenk- nor one from Queens Assemblyman giving and taking of bribes’ writer, he once sponsored legislation ins, has a good reputation. But he Francisco Moya that Mr.Stebbins con- —U.S. Attorney Preet Bharara, on the convictions of former state Senate Majority to let check-cashers make high- represents the New York State Trial siders a “red herring.” Leader Malcolm Smith, D-Queens, and GOP official Vincent Tabone

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February 9, 2015 | Crain’s New York Business | 5 20150209-NEWS--0006-NAT-CCI-CN_-- 2/5/2015 6:28 PM Page 1

BUSINESS $547M Estimated city revenue from hotel taxes in 2015, up 2.4% over 2014 PEOPLE Source: NYC Office of Management and Budget

EXECUTIVE MOVES

Citi Foundation: Brandee McHale, 46, was promoted to president of the foundation and director of corporate citizenship for Citi. She was previously chief operating officer for the foundation. Clio Awards: Nicole Purcell, 38, was promoted to president of the international awards competition for the advertising industry. She was previously executive vice president. Work Market: Stephen DeWitt, 49, joined the talent-management platform as chief executive. He was previously senior vice president of worldwide enterprise marketing at Hewlett-Packard. GPB Capital Holdings: William Jacoby, 50, joined the private-equity firm as chief financial officer. He was previously managing director and chief financial officer at Napier Park Global Capital. DDB New York: Icaro Doria, 35, joined the advertising and marketing agency as chief creative officer. He was previously executive creative director at Wieden+Kennedy, which he founded. Queens Community House: Ben Thomases, 39, will join the settlement house as executive director, effective Feb. 23. He is currently executive vice president for programs at Seedco. Helen Keller Services for the Blind: Haben Girma, 26, was appointed a board

buck ennis member at the nonprofit. She GOTHAM GIGS continues as an attorney at Disability Rights Advocates. Persado: Reggie Bradford, 48, was appointed to the marketing technology company’s board of He likes to make a scene directors. He continues as senior vice president of product development at Oracle. House Beautiful: Sophie Donelson, 35, Set designer Derek McLane is in Oscar spotlight joined the home-design magazine as editor in chief. She was previously Infuriating his grandparents led to Derek “is actually a lot less pressure.” ¶ Mr. McLane’s brand director at Cricket’s Circle. Enraging CBRE Group Inc.: Mark E. Bratt, 59, McLane’s award-winning career as a production Into the Woods doesn’t have trees. A piano is one of joined the commercial real estate his grand- designer for theater and television. While at the show’s few props, so he created a “forest” of services and investment firm as senior managing director of CBRE Capital parents Harvard University, Mr. McLane staged a piano strings around the stage, giving it a rustic Markets. He was previously chief production of King Lear that included a Lincoln look. ¶ A graduate of the Yale School of Drama, investment officer at DDR Corp. Allison+Partners: Tom Smith, 44, launched Continental. “My grandparents were enraged,” Mr. McLane’s first stint as a head designer came joined the global communications said Mr. McLane, 56. “I got a thrill getting such a in 1985 for a play about Franz Kafka at La firm as managing director of corporate an award- strong reaction from them.” ¶ His work remains MaMa. “I was devastated when no one came to reputation. He was previously executive vice president at Ogilvy PR. winning provocative, though these days his reviews are see it,” he said. ¶ Since then, he has worked on CBIZ: Michael Sacco, 38, was promoted more positive.This month, he will be reprising his dozens of productions, earning a Tony in 2009 for to managing director at the career professional business services firm. He role as art director for the Oscars telecast Feb. 22, 33 Variations. ¶ Mr. McLane, a father of three was previously director. for which he won an Emmy last year. ¶ Mr. who lives in the West Village, said fashioning the West Monroe Partners: Matt McLane also designed the set for a pared-down set for the Oscars is “terrifying” because tens of Sondag, 41, was version of Stephen Sondheim’s Into the Woods that millions watch the show and love to criticize it. appointed managing premiered off-Broadway last month, a contrast to Yet he said his toughest gig was designing the set director in the mergers-and- an extravagant movie of the work that was of NBC’s live telecast of Peter Pan last year. ¶ “It’s acquisitions and released recently. ¶ Although there have been live, and you only do it once,” he said. “You operations- excellence practices many interpretations of the show,“there hasn’t rehearse, but you don’t get any audience reaction.” in the business and technology been a definitive production,” he said. Staging one —theresa agovino consulting firm’s New York office. He

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BUSINESS PEOPLE

EXECUTIVE MOVES CORPORATE LADDER

was previously managing director and leader of the mergers-and-acquisitions ORCHESTRATING THE PHILHARMONIC’S FUTURE and operations-excellence practices in BILL THOMAS, the newly appointed chief operating officer of the New York Philharmonic, has worked at the orchestra since the Chicago office. 1999, not including a two-year stint at the Metropolitan Opera from 2006 to 2008, a time he jokingly refers to as his “two- Eyeview: Keith Crystal, 47, joined the year sabbatical.” online personalized video-advertising platform as executive director of sales. “I love the Met, but I love the Philharmonic even more,” said the native New Yorker. Over the years, Mr. Thomas, 59, He was previously director of sales at has held the titles of chief financial officer and acting executive director at the orchestra, which has a budget of $76 million. Epsilon. He said the latter role “was a nice crash course in what it takes to run the Phil.” Park Madison Partners: In addition to his financial and operational responsibilities, he will also oversee the orchestra’s marketing Amy Thiessen, 38, initiatives while retaining the title of senior vice president. He has already helped develop the Philharmonic’s media joined the real estate program; the orchestra is on the radio 52 weeks a year, primarily in the U.S. placement and “Bill is kind of a rock here,” said President Matthew VanBesien. “He has great institutional knowledge.” advisory firm as a principal. She was The appointment comes at a time when the Philharmonic is seeking to raise millions to renovate Avery Fisher Hall and

previously managing double its $200 million endowment. The renovations are expected to cost $500 million. —NAZISH DHOLAKIA chris lee director at Forbes Private Capital Group. GQ: Jason Zengerle, 41, joined the magazine as a political correspondent. He was previously a senior editor at The New Republic. NoWait: Jim Duddy, 45, joined the mobile network for casual-dining restaurants as vice president of sales. He was previously senior vice president of sales at Jibe. Adam Gerson, 37, joined as vice president Give your employees of operations. He was previously New York City general manager at Hailo. Genesis Media: Faizan Bhat, 27, was promoted to vice president of product the duck. management. He was previously a product manager. Rob Schwartzberg, 32, was promoted to vice president of technology at the online video-technology company. He Anything else is just was previously senior director of technology. Carl Marks Advisors: Keith Daniels, 44, was promoted to partner at the consulting and investment-banking advisory firm for chicken. middle-market companies. He was previously managing director. Jonathan Killion, 31, was promoted to director. He was previously vice president. Almost 60 percent of employees Rob Shapiro, 25, was promoted to wish their employers offered associate. He was previously an analyst. Boies Schiller & voluntary insurance1. Flexner: Matthew L. Schwartz, 37, joined the law firm as a The question is, who will you choose? partner in the global investigations and white-collar defense You could opt for a voluntary option from your practice. He was medical carrier, or you could offer coverage from previously an assistant 2 U.S. attorney at the U.S. Attorney’s the number one voluntary provider : Afl ac. Office for the Southern District of New York. There’s no direct cost to you for offering it, and Peter M. Skinner, 42, joined as a partner in the global investigations and white- getting started is as simple as adding a payroll collar defense practice. He was deduction. That’s why business owners like you previously an assistant U.S. attorney at the U.S. Attorney’s Office for the have chosen Afl ac for nearly 60 years. It’s also Southern District of New York. why we’re so confi dent Afl ac is the right partner John T. Zach, 39, joined as a partner in for your business. the global investigations and white- collar defense practice. He was previously an assistant U.S. attorney at You can bet the farm on it. the U.S. Attorney’s Office for the Southern District of New York. Frankfurt Kurnit Klein + Selz: Christopher Call your local agent and visit Chase, 37, was promoted to partner at the law firm. He was previously afl ac.com/business counsel. Jeremy Goldman, 36, was promoted to partner. He was previously counsel. Alan Sacks, 44, was promoted to partner. He was previously counsel. Jones Walker: Brian Lawlor, 61, joined the law firm as special counsel in the affordable-housing practice. He was previously director of housing policy and community development for the city of New Orleans. —nazish dholakia EXECUTIVE PROMOTIONS 12013 Afl ac WorkForces Report, a study conducted by Research Now on behalf of Afl ac, January 7 – 24, 2013. 2Eastbridge Consulting Group. U.S. Worksite/Voluntary Sales Report. Carrier Results The fastest way to get an announcement into for 2012. Avon, CT: April 2013. Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Crain’s is to submit online. Fill out the form Company of New York. Worldwide Headquarters | 1932 Wynnton Road | Columbus, GA 31999 at www.crainsnewyork.com/section/ Z131175 11/13 executive_moves. The Executive Moves column is also available online.

February 9, 2015 | Crain’s New York Business | 7

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OPINION CRAIN’S The mayor’s housing push NEW YORK BUSINESS editor in chief Rance Crain publisher, vp Jill R. Kaplan hey sounded like fighting words: “The city Albany to end rent regulation, which perversely limits the EDITORIAL has for decades let developers write their overall supply of affordable housing, as economists on both editor Glenn Coleman managing editor Jeremy Smerd own rules,” Mayor Bill de Blasio said of the left and right will affirm. He won’t even push to reform deputy managing editors Valerie Block, Erik Ipsen residential builders in a speech last week. the program to relocate tenants who have more space or assistant managing editors Barbara Benson, But developers are not the mayor’s lower rents than they can justify. Such common-sense Erik Engquist senior news producer Amanda Fung problem—they are his solution: He wants solutions are third rails in New York City politics. contributing editor Elaine Pofeldt them to build 80,000 affordable and He is left with one option to stem the rising cost of columnists Greg David, Steve Hindy, Alair Townsend senior reporters Theresa Agovino, 160,000 market-rate homes by 2024. Big numbers for sure, housing: Build much more. Only developers can do that, and Aaron Elstein, Lisa Fickenscher, Matthew Flamm, even if they would merely keep pace with population gains. only the private market can pay for it. Daniel Geiger, Adrianne Pasquarelli T reporters Joe Anuta, Chris Bragg, Mr. de Blasio’s rhetoric was not aimed at builders but at Mr. de Blasio’s stated strategy—“adding density to Andrew J. Hawkins, Irina Ivanova, Jonathan LaMantia, Thornton McEnery New Yorkers who fear them. He was telling people he is on appropriate parts of our city”—is solid. But can he execute? news producer Emily Laermer their side, so when he supports projects where they live, they Community opposition web reporter/producer Nazish Dholakia won’t chain themselves to the bulldozers. is an obstacle; so is red art director Steven Krupinski Rhetoric aside, deputy art director Carolyn McClain We wish him luck. Prejudice against development runs tape, which the mayor staff photographer Buck Ennis copy desk chief Steve Noveck deep among too many city dwellers and cuts across races and the mayor needs vowed to reduce (a copy editor Thaddeus Rutkowski classes. Despite the mayor’s pontificating about inequality, promise every mayor data editor Suzanne Panara developers to researchers Jessica Kramer, Nicholas Wells many constituents believe his rezoning initiatives will price makes). Missteps are editorial intern Yoona Ha them out of their neighborhoods. One resident even build like crazy inevitable—in his ADVERTISING advertising director Joanna Harp opposed a 100% affordable project in working-class Sunset speech, for example, sales manager Irene Bar-Am Park, Brooklyn, complaining at a civic meeting that it “smells Mr. de Blasio called for senior account managers Jill Bottomley Kunkes, Courtney McCombs, like gentrification,” The New York Times reported. a massive affordable- Rob Pierce In his speech last week, Mr. de Blasio blamed high housing complex over account managers Zita Doktor, Stuart Smilowitz sales coordinator LeAnn Richardson housing costs on developers’ “bias toward luxury housing,” an active Queens rail yard, only to have Gov. Andrew credit manager Jason Hogan (313-446-0353) but he surely knows there was simply not enough housing Cuomo declare an hour later that the largely state-controlled CUSTOM CONTENT, EVENTS AND PRODUCTION built to meet rising demand as the city’s quality of life site is “not available.” director of custom content Trish Henry director of audience & content improved.The supply-demand imbalance, not the But our concern is that the mayor and City Council won’t partnership development Michael O’Connor director of conferences & events construction of luxury units, caused housing costs to rise. have the gumption to give New Yorkers the development Courtney Williams The mayor won’t dare address the problem by asking they need when they protest it’s something they don’t want. events coordinator Adrienne Yee events coordinator & scheduler Alexis Sinclair reprint account executive Alicia Samuel CRAIN’S ONLINE POLL COMMENTS media services manager Nicole Spell ONLINE AND INTERACTIVE SERVICES general manager Rosemary Maggiore TO SUBSCRIBE: For print and digital subscriptions or customer Cleaning up the capital service, e-mail [email protected] or call 877-824-9379 (in the U.S. and Canada) or in New York City, I call on Mr. 313-446-0450 (all other locations). $3.00 a copy for HOW TO CURB GRAFT UNEQUAL EDUCATION the print edition; or $99.95 one year, $179.95 two David to dig deeper. Find out years, for print subscriptions with digital access. Re “No more business as usual” Greg David compares New where the money’s going. Be- www.crainsnewyork.com/subscribe (Editorial, Jan. 26): New ethics York with California, Florida cause if it’s not getting to the TO ADVERTISE: legislation is needed and should and Texas—states with inferior kids, I’d like to know. We’d all Contact Joanna Harp at [email protected] include term limits for state leg- educational systems to ours, by benefit from this money being or call 212-210-0278. islators; no outside income of most measures (CrainsNew used as wisely as possible. www.crainsnewyork.com/advertise any kind for legislators in ses- York.com). So, yes, if we want —john burns FOR INFORMATION ON OUR EVENTS: SHOULD ANTI-VAXXERS BE sion; elimination of bribes, pay- to have a crappy system, we Dyker Heights, Brooklyn Contact Courtney Williams at to-play and all other transac- could spend less. [email protected] or 212-210-0257. REQUIRED TO VACCINATE www.crainsnewyork.com/events tions that involve trading votes Also, New York state gives a FEE GOES TOO FAR THEIR CHILDREN? for money; elimination of pen- disproportionately large TO CONTACT THE NEWSROOM: sions and other state compensa- amount of money to wealthy Re “Bag fee a cheap way to save 685 Third Ave., New York, NY 10017-4024 Yes. Vaccines are safe. Parents who reject tion for convicted politicians; districts, and less to poor ones. the planet” (Op-ed, Jan. 26): editorial phone: 212-210-0277 them put their children and others at risk. and a minimum 25-year sen- In fact, we are among the most Self-righteous bleating about fax 212-210-0799 saving the world one shopping Entire contents ©copyright 2015 Crain Communications Inc. No. The government shouldn’t tell people what tence for fraud and corruption. unequal states in this regard. All rights reserved. ®CityBusiness is a registered trademark they must put in their children’s bodies. —steve savarese New York needs to fund dis- bag at a time ignores a real- of MCP Inc., used under license agreement. tricts with more low-income world issue—many people use CRAIN COMMUNICATIONS INC. BOARD OF DIRECTORS Date of poll: Feb. 3 Re “Fix the causes of corrup- children at a decent rate (as set supermarket bags as garbage 155 votes chairman Keith E. Crain tion” (Editorial, Feb. 2): Anoth- by the state courts) and cut bags. Without getting them president Rance Crain er suggestion: term limits for all funding for higher-income ones from the store as part of our treasurer Mary Kay Crain 83% state legislators and the gover- to achieve some kind of parity. purchase, we’d only go out to Cindi Crain Yes nor. Sheldon Silver or anyone —dorothy siegel buy more bags for our trash. executive vp, operations William Morrow who holds elected office for that Cobble Hill, Brooklyn We might as well also re- executive vp, director of strategic many years is going to be cor- quire New Yorkers to carry operations Chris Crain executive vp, director of corporate rupted by the power and wealth After courageously defending their own coffee mugs for Star- operations K.C. Crain at their fingertips. Even 12 years the 1% by railing against work- bucks, bowls and spoons for senior vp, group publisher David Klein (six terms) would be better than ing people, now Mr. David has frozen yogurt, plates for pizza vp/production, manufacturing David Kamis the open run we have now. decided to go after their kids. and bottles for water. chief financial officer Thomas Stevens 17% chief information officer Anthony DiPonio No —mark london But putting aside such issues as —steven a. schwimmer Forest Hills the cost of living being higher Upper East Side founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) secretary Merrilee Crain (1942-2012) FOR THIS WEEK’S QUESTIONS: CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to [email protected]. Send columns of 475 Go to www.crainsnewyork.com/poll to have your say. words or fewer to [email protected]. Please include the writer’s name, company, address and telephone number.

8 | Crain’s New York Business | February 9, 2015 20150209-NEWS--0009-NAT-CCI-CN_-- 2/6/2015 12:44 PM Page 1

use, like decommissioning that old STEVE HINDY refrigerator in the cellar, insulating windows more efficiently and switching to LED lightbulbs. (I am Seeing the light reminded of my father shouting, “Turn off the @#$% lights when you leave a room!”) on solar power NRG’s main home solar product is much larger than this: a 32-panel array that is leased to a homeowner. just signed a contract with Princeton, N.J.-based NRG NRG installs the panels and main- Home Solar to get solar panels installed on the roof of tains them. The property owner my house in Brooklyn. Because of New York City Fire pays only a monthly fee—no money down. NRG estimates savings on Department regulations, it is not a big enough solar ar- utility bills over 20 years at $55,000. ray to meet all my electrical needs, but it is as good as I The homeowner also would save can get at this time. $5,000 on property taxes. I There are many homes in Victo- Built in the 1840s, my three-story wood-frame home origi- rian neighborhoods like Park Slope 5boros is a lifestyle nally was set on a 300-acre potato farm in Gowanus. The flat that do not have roofs big enough to fit a solar setup. NRG and other and entertainment roof is 25 feet wide and 35 feet deep. fers a property-tax rebate of 2.5% of suppliers are developing “shared so- Because the Fire Department re- the equipment cost, so the net cost is lar” plans in which many residences print, digital and event quires a clear 6-foot perimeter less than $2,500.The total savings in could get power from an array on a around any such array, only 11 solar electricity bills over 25 years will be warehouse or big-box store roof. panels will fit on the roof. about $1,390 annually. I could re- Government subsidies are a key brand that taps into the The 3- by 5-foot panels should coup my costs in less than two years. to making solar attractive, but the produce more than 3,500 kilowatt Who says solar doesn’t make eco- technology is improving exponen- excitement and vibrancy hours of electricity annually—just nomic sense? tially,and costs are falling.Advocates over one-third of the power used in NRG will also pay me $500 for like Stanford Business School lec- of ALL of New York City’s my house. The electricity generated anyone I successfully refer for a solar turer Tony Seba are predicting that by sunshine will be wired into Con installation, so I am hoping to whit- solar will make gas- and oil-fired five boroughs with a laser Ed’s electrical box in the cellar. tle the cost further. I am responsible power plants obsolete by 2030, the When the panels produce more for maintaining the system. NRG, same way digital cameras killed film. power than we consume, I will be thankfully, is handling the permits I’m not sure I buy that, but my ex- focus on lifestyle. selling electricity to Con Ed. with the Department of Buildings. perience with NRG shows that home The solar installation’s purchase Guy Brooks, the NRG specialist solar is viable and probably should be price is $5,536. The federal govern- who came to explain the design to my an important contributor to Mayor Coverage includes: ment refunds 30% of the cost and wife and me, also pointed out many Bill de Blasio’s plan to reduce the city’s New York state 25%,and the city of- ways we can reduce our electricity carbon emissions 80% by 2050. 5{¯¼¯ĺ¯¯€ĺƯʼÀĺ“ªĺ¹p¼Æª„¼À‘“¹ĺԓƑ Thrillist Hot residential real estate trends ELECTRIC-BILL COMPONENTS Personality Profiles Energy 41.6% The real costs Foodie and Cultural experiences Con Ed 31.0% Taxes 27.4% Innovative retailers and shopping behind Con Ed hike destinations dustry calls “smart meters” to im- Lists and calendar of not to be onsolidated Edison wants a 7.2% increase in what prove how consumers use electricity. it charges New Yorkers,who already pay the high- Make no mistake, Con Ed is missed events profitable. As a regulated utility,the est electric bills in the country, and politicians are law dictates that Con Ed should be outraged. “Given the recent declines in oil and allowed reasonable earnings so that Showcase your message natural-gas prices, it is hard to understand why it can pay shareholders an attractive Con Ed is choosing now to raise electric rates,’’ said Public Ad- dividend. It can then command a in front of New York’s C higher stock price so that it has the vocate Letitia James in a fairly typical line of reasoning. ability to borrow at reasonable rates, urban explorers. It’s time for Con Ed 101 (again). precisely so it can maintain its sys- tem.If its stock declines and its bor- Con Ed is not the all- rowing costs rise, the company will ¯¼ĺp€Ó„¼Æ“À“ªŽĺ¯¹¹¯¼Æʪ“Æ“„ÀĘĺ|¯ªÆp|Æĺ encompassing utility people grew simply pass along the increase to up with. It has sold off almost all its consumers. „ª„¼p£ĺ7pªpŽ„¼Ęĺ#¼„ª„ĺ p¼Į
©ĺpÆĺ generating capacity at the insistence In fact,Con Ed is thoroughly av- “{p¼p©Ş|¼p“ªÀª„ÔÚ¯¼ ĝ|¯©ĺ¯¼ĺ of regulators and now is only in the erage when it comes to its financial íìíĮíìëĮëìîîĝ business of delivering natural gas health. Yahoo Finance lists Ameri- and electricity to customers and can Electric Power Co.as a peer,and maintaining the infrastructure that the two companies are virtually does this. Con Ed has no say in the identical on key measures—operat- price of the energy it sends to cus- ing and net-profit margin as well as tomers,which is set through a state- return on assets and equity.Over the mandated system so byzantine you past two years, Con Ed’s stock has NGJ#8 ĺíëìðĺ#NNW don’t want to know any more. So, GREG DAVID significantly underperformed the Ms. James, the decline in oil and S&P 500, gaining around 21% to natural-gas prices has no impact on the S&P’s 37%. March 30, 2015 what Con Ed needs to charge. to maintain and improve its system. Since Con Ed is sophisticated ¯©“ªŽĺ In fact, Con Ed claims less than It is in the final year of a four-year, about the game it must play, its re- a third of the typical residential $1 billion storm-hardening program quest is larger than it needs because March 2, 2015 customer’s monthly payment. implemented after Hurricanes Irene it knows the Public Service Com- £¯À“ªŽĺ Government taxes account for al- and Sandy. It says it needs to make mission will reduce it to satisfy pub- most as much as the utility does— major investments in booming lic opinion. When it does so, the a key reason for those “highest in Brooklyn, to accommodate the PSC will need to take care that it the nation’’ bills. growth of Hudson Yards on the gives Con Ed the financing ability ĺĺð{¯¼¯Àĝ|¯©ĺĺĺĺĺĺŞ|¼p“ªÀð{¯¼¯À Con Ed says it needs the rate hike West Side,and to install what the in- to keep the electricity flowing.

February 9, 2015 | Crain’s New York Business | 9 20150209-NEWS--0010-NAT-CCI-CN_-- 2/5/2015 5:39 PM Page 1

REAL ESTATE

About 80% of the next-gen in restaurants and nightlife desti- and Levi Strauss & Co.that also call apartments will be rentals, as op- nations. the building home. But as the prop- Downtown B’klyn posed to condos,and a full quarter of —joe anuta erty gets a face-lift, which includes them will be defined as affordable. upgrades to building systems, it has The area will also see nine hotels been attracting a wider variety of take shape with a total of more than Developer inks tenants. boom looms 1,000 rooms—a 70% jump from the Williamsburg deal “We are benefiting from the current number. market migrating toward our area, or all those people who thought But the picture has its blemishes. The real estate developer that and are seeing a broader tenant pop- downtown Brooklyn had hit its peak Less than 2 million square feet of scooped up Vice Media’s headquar- ulation outside of the traditional in terms of the production of new office space has been created ters in Williamsburg, Brooklyn, is fashion-district companies,” said apartment towers, we have two since the rezoning, even while a host buying an adjacent building that Brian Robin, an executive at Calla- words of advice: Think again. of startups and tech and creative houses another prominent media han Capital Properties, which is the FAs it turns out, over the next several years firms have expressed interest in rent- brand. asset manager of the building on be- such construction activity will dwarf the sum ing a total of more than 100,000 Cayuga Capital is paying $14.5 half of its owners. total of the past decade. About 6,000 units square feet of space. But with a rock- million for a warehouse at 85 Wythe In 2012, Ivanhoé Cambridge have come online since the area was rezoned bottom vacancy rate of 3.4% and Ave. that is occupied by Colossal—a purchased a 49.9% stake in the in 2004, but more than twice that number— larger tenants long known to essen- company that specializes in produc- 12,750—are on their way, according to a tially warehouse empty acreage,there ing hand-painted murals, billboards market report released last week by the is little room to make it happen. and outdoor advertisements. Downtown Brooklyn Partnership. The report, however, suggested The acquisition completes “Downtown Brooklyn’s strong growth several ways to turn the tide. For Cayuga’s block-long parcel of prop- will continue over the next several years,”said one, tenants or landlords could look erties along Wythe Avenue between

Tucker Reed, president of the nonprofit, in a buck ennis for any underutilized space and re- North 10th and North 11th streets. statement.“The key is identifying and nurturing the type of growth that will purpose it more productively.In ad- The company is planning to rede- meet the demands of current and future residents, workers and visitors.” dition,the city could create financial velop the properties, starting with a All told, the area will see $6.5 billion of mostly residential or mixed-use incentives for developers to build roughly 100,000-square-foot office projects come to fruition.Those projects include towers being developed by new commercial quarters. building it hopes to break ground for the Gotham Organization and Two Trees Management in the BAM Cul- The partnership also conducted this year. building from the Blackstone tural District. a survey that found the area lacking Colossal’s warehouse sits next to Group. Ivanhoé promptly tapped a a group of buildings that Cayuga CBRE Group team led by Paul Am- Capital acquired last year, including rich to tackle the leasing of 150,000 the headquarters for Vice Media. square feet of then-vacant space. Colossal has a lease that runs for Mr. Amrich and Patrice Meagher th another few years at its location, represented the landlord in the cur- 4 Annual Join Crain’s and New York which serves as a key warehouse fa- rent transaction. cility for its operations.Months ago, Fila USA was represented by the company appeared to offer its Leslie Harwood and Brent real estate’s most impressive own sharp commentary on the ac- Ozarowski of Newmark Grubb REAL ESTATE quisition of the neighboring proper- Knight Frank. players to explore the next ty that holds Vice’s offices, painting —joe anuta a mural of a phallus-shaped luxury stage in the city’s development. development on the front of its warehouse. Producer rolls CONFERENCE Mr.Wiseman said that he would to Crown Heights accommodate the company for the remainder of its lease and help it re- Faced with soaring rents in Brook- locate. lyn’s Dumbo, Emmy Award- PLANNING THE NEW NEW YORK “We love what they do and would winning film production company love to keep them as a tenant,” said MediaStorm will decamp to Crown Jamie Wiseman, a principal at Heights. OPENING DISCUSSION Cayuga Capital. There, the tenant will occupy TUESDAY, MARCH 17, 2015 —daniel geiger 3,800 square feet at 1000 Dean St.,an Chairman of the NYC Planning old warehouse building that was re- New York Athletic Club cently converted into office space by Commission Carl Weisbrod Sportswear outfit 180 Central Park South a partnership between Brownstoner will unveil the de Blasio transfers flag Media,BFC Partners and Goldman Networking Breakfast: 8:00a.m.-8:30a.m. Sachs’ Urban Investment Group. administration’s latest zoning Program: 8:30a.m.-12:00p.m. Italian sportswear company Fila will “Their rent was going to go up by policies and urban-planning move its North American headquar- 40% in Dumbo,” said Chris Havens, Cost to Attend: ters to 1411 Broadway, where land- a broker with Aptsandlofts.com,who initiatives. $300 for individual ticket(s) lords Ivanhoé Cambridge and the arranged the five-year lease with Me- Carl Weisbrod Swig Co. are wrapping up a lobby diaStorm.“This is a great location be- $3,000 for table(s) of ten renovation. cause it’s on the cutting edge and PANEL DISCUSSIONS $4,000 for a table of ten and a full page Fila USA inked a 10-year lease really fits for creative tenants.” > Restaurant Tenants Tell All: journal ad in the event program. for 25,300 square feet on the 30th The price was right, too. The floor of the building, where the ask- asking rent at 1000 Dean St. is $26 Rohini Dey, Ph.D., Owner, Vermilion Restaurants (NYC & Chicago) You must be pre-registered to attend this event. ing rent was $75 per square foot.The per square foot. In Dumbo, rates No refunds permitted. Wylie Dufresne, Chef and Owner, Alder restaurant global fashion firm joins the ranks of have risen into the $40s per square Georgette Farkas, Founder & CEO, Rotisserie Georgette other high-profile clothing con- foot and higher. For more information: cerns, such as Nine West Holdings —daniel geiger Jimmy Haber, Managing Partner, ESquared Hospitality Adrienne Yee > Affordable Housing: Phone: 212-210-0739 BARE BONES Joshua Barro, Domestic Correspondent, New York Times, The Upshot Email: [email protected] Lisa Gomez, Partner and COO, L+M Development Partners 41-61 KISSENA BLVD., Seth Pinsky, Executive Vice President, Fund Manager, FLUSHING, QUEENS Metro Emerging Markets & Public Affairs Director, RXR Realty << >> ASKING RENT; TERM: Low $40s per REGISTER TODAY square foot; 12 years Steven Spinola, President, Real Estate Board of New York crainsnewyork.com/events-realestate2015 SQUARE FEET: 23,000 TENANT; REPS: CyraCom International Inc.; Steve Gerhard and Platinum Sponsor: Joshua Kleinberg of CBRE Group Inc. LANDLORD; REP: Muss Development; in-house representation by Ross Spitalnick BACK STORY: The company, which provides translation and interpretation services For sponsorship opportunities, contact Joanna Harp at 212-210-0278 or [email protected] to clients in the health care industry, will open an office on the ground floor of Flushing Plaza this summer.

10 | Crain’s New York Business | February 9, 2015 20150209-NEWS--0011-NAT-CCI-CN_-- 2/5/2015 6:29 PM Page 1

SMALL BUSINESS INSIDE The List New York area’s largest executive recruiting firms PAGE 13 ‘Venture capitalists often have a higher risk tolerance than we do’ REPORT —Dane Atkinson, CEO, SumAll, Page 12 Heading for the exits With their eyes DEALS PICK UP on billion-dollar Venture capitalists increased their investment in New York tech firms valuations, CEOs plan significantly from 2013 to 2014.

every move carefully In billions $4.5

BY EILENE ZIMMERMAN $2.9 Jason Richelson and his partner, Amy Bennett,lost thousands of dol- lars in sales after the server-based cash-register system crashed at Green Grape, their Fort Greene, Brooklyn-based business, in 2008. 2013 2014 That disaster at the wine shop and Source: CB Insights gourmet food stores soon inspired Mr.Richelson to launch ShopKeep, New York City.That’s our goal.” a cloud-based point-of-sale system ShopKeep isn’t alone in making for high-volume retailers. carefully calculated strategic hires Fast-forward to today.The 180- and other moves with the hope of employee firm has raised $37.2 mil- winning a billion-dollar valuation. lion in venture capital from in- More firms are doing so, thanks to vestors including Tom Glocer, a inspiration from IPOs like former CEO of Thomson Reuters. OnDeck’s in December. To max out the company’s valua- OnDeck raised about $200 mil- tion, it brought in Norm Merritt, lion and put the firm’s value at about former chief executive of iQor, a $1.3 billion in the largest venture- $550 million business-process out- backed tech exit ever in the city, ac- sourcing firm, as CEO and presi- cording to CB Insights, which dent eight months ago. tracks privately held companies. “They hired me to help them Meanwhile,there has been plen- scale the business and get it to the ty of speculation about an IPO for SHOPKEEP CEO next level,” said Mr. Merritt. That database firm MongoDB, valued at and President Norm “next level,” they hope, is a lucrative about $1.2 billion, and online mar- Merritt (left) and exit, though Mr. Merritt said exact- ketplace Etsy, based in Brooklyn, founder and Chief Strategy Officer ly what form it will take is to be which could raise as much as $300 Jason Richelson are determined. As Mr. Richelson, now million in an IPO. aiming to maximize chief strategy officer, told Tech Yext, which allows businesses to what the technology Crunch last year, “There are no manage their digital presence, had a company is worth. billion-dollar software-as-a-service $50 million round of fundraising in

buck ennis businesses that have been born in See EXITS on Page 12 Litigation-finance firms are betting on the little guy

Morningstar Inc.Bankrolling Busi- hattan-based outpost of an Aus- Portraying themselves as white New York is the center of the in- Hedge funds, ness Logic’s case was a New York tralian company that finances plain- knights, companies like Bentham dustry in the U.S. During the past private-equity City outfit, Lake Whillans Capital tiffs in commercial cases. Bentham US and Lake Whillans say they help five years, Bentham US, Burford Partners, which helps US took home $2.2 mil- entrepreneurial firms that retain Capital and Juridica Investments— players fund small small and medium-size lion for its trouble. them to wage battles against bigger, all publicly held—have established businesses sue other busi- 200 Pioneered in Australia, better-funded companies that steal offices here. In 2012, Parabellum businesses’ lawsuits nesses they believe have APPROXIMATE taking hold in Britain and their intellectual property,renege on Capital spun itself off from Credit wronged them. NUMBER OF now making inroads in the contracts or commit fraud or other Suisse, and last year Lake Whillans BY JUDITH MESSINA U.S. CASES A year before that, an reviewed by United States is the busi- offenses against them. made its debut. It was founded by Indiana roofing contrac- Bentham for ness of commercial litiga- “It has to do with leveling the two former employees of Black- Last July, after a five-year legal bat- tor, Joseph Radcliff, possible funding tion finance. Litigation playing field and access to justice,” Robe, a litigation funder that fell tle, a small Chicago software com- scored $17 million in a funders pay upfront legal said Ralph Sutton, a former trial apart in 2013, reportedly over dis- pany, Business Logic, won a $61 defamation suit against State Farm costs for plaintiffs or their lawyers in lawyer and now chief investment of- agreements among the partners and million breach-of-contract lawsuit Insurance, thanks to an injection of return for a share of a settlement, ficer and head of Bentham US’ New an inability to raise capital. against investment research house cash from Bentham US, the Man- judgment or verdict down the road. York office. See BETTING on Page 12

February 9, 2015 | Crain’s New York Business | 11 20150209-NEWS--0012-NAT-CCI-CN_-- 2/5/2015 6:38 PM Page 1

REPORT SMALL BUSINESS

TO THE RESCUE: Ralph Sutton of Bentham US, which Eyes on the IPO prize finances small businesses’ legal battles against Continued from Page 11 The 44-employee company, Many companies are also invest- larger firms June and then hired a CFO in launched in 2011, is based in Man- ing heavily in raising their profile in October who had guided both hattan’s financial district. About the current climate. Betterment, an Pandora and Salesforce through 340,000 businesses and 20,000 in- automated investing service, has their IPOs. dividuals currently use its tools. raised $45 million since launching Outbrain, one of Crain’s Best An exit for SumAll is “years in 2010, and its assets under man- Places to Work last year,is reported- away,” said Mr. Atkinson, but an agement have grown almost 400% ly considering an IPO to raise $100 IPO, rather than an acquisition, is every year.The firm, headquartered million, which would put its worth most likely. “We have upwards of a on West 23rd Street in Manhattan, at more than $1 billion. One reason million active individuals using us, has 80 employees and manages for these high valuations is that which means we’ve built a lot of about $1.2 billion in assets for

startups are waiting longer to exit brand awareness,so whenever we do 60,000 customers, but declined to ken pao than they have in the past and are us- disclose revenue or profitability. ing the time to scale up and raise lots When asked about exit plans, of cash in the private markets. ‘It’s a great founder and CEO Jon Stein said he Betting on the little guy Last year was a big one for M&A is “in it for the long haul,” but his deals, too, with 184 venture-backed time to raise company is also growing rapidly and tech companies in New York City doing more marketing than ever— Continued from Page 11 sources, but observers say law firms acquired, according to PrivCo, money in outdoor advertising, television, Many litigation-finance firms are taking notice. which provides data and financial National Public Radio, online and are backed by hedge funds, private- “The commercial side is very research on privately held compa- the private content marketing—to raise its vis- equity firms, family offices and oth- promising,” said Anthony Sebok, a nies. That number was second only ibility. er investors who sink millions into professor at Benjamin N. Cardozo to Silicon Valley, which had about markets’ these funders, betting on returns School of Law at Yeshiva University 280,according to PrivCo CEO Sam Hiring top talent that are not correlated with the ups in Manhattan and an expert on liti- Hamadeh. In the recent past, he In angling for later, bigger exits, and downs of the stock market. If a gation funding.“There’s been a huge said, a good year for acquisitions in these organizations are also going suit fails,they and their investors eat growth of interest and large growth New York City meant 75 to 100. into overdrive to attract top-notch the loss. But if they win, the payoff in the number of companies.” “There is a lot of money in the executives and engineers. Better- can be substantial. Bentham US’ The upfront costs of a lawsuit can system right now,” said Nick Beim, a filing, we’re not just saying that ment is filling out its leadership rule of thumb, for example, calls for run to millions of dollars—and so a partner at venture-capital firm 300 customers use us, it’s a million,” team with “growth executives”hired 50% to 65% of the spoils to go to the can the returns. Bentham US typi- Venrock. “It’s a great time to raise he said. To hit its goal, SumAll has in the past year, said Mr. Stein. And plaintiff, with the remainder split cally puts up around $1 million, money in the private markets, and hired a business-development exec- many firms funnel their early invest- between itself and the lawyers. Ben- staking plaintiffs in suits with a re- we are witnessing the rise of some of utive who came from American Ex- ment capital into attracting and re- tham US financed 10 deals last year alistic shot at a recovery of at least the fastest-growing companies press and has experience building taining the high-quality technical and netted $17 million in profits on $10 million. Lake Whillans invests we’ve ever seen.” corporate partnerships. talent that raises a firm’s profile. $100 million in recoveries. between $2 million and $10 million To position themselves for a daz- ShopKeep is using a similar “Engineers here can command al- Some litigation funders take on and looks for cases with estimated zling exit, companies have changed strategy.Mr.Merritt,the CEO,said most the same kind of salaries they cases for large corporations, where damages of at least $25 million. their later-stage funding strategies the company is “on a tear now,grow- can in Silicon Valley,and it’s not just the issue is not a lack of money but to take advantage of the availability ing rapidly,about 10% a month. We cash,” said PrivCo’s Mr. Hamadeh. the need to limit risk or manage a Uses for capital of investment capital. Some are are getting as many merchants on “It’s also a bigger say in the direction slim litigation budget. Others, like For small and midsize plaintiffs, turning to sources other than ven- board as we can and building our of the company itself, loftier titles, a Bentham US and Lake Whillans, it can mean the difference between ture capital for that funding. network, which creates a lot of val- chunk of the company.” target small and medium-size busi- thriving, surviving or even going “A lot of these later rounds, ue for potential investors.” The Despite the number of startups nesses, sometimes venture-backed, bust.Bentham US is talking to a 15- which are so large,are being done by company is not profitable “by aiming for a billion-dollar IPO, that can’t afford high-priced lawyers employee targeted-mail company financial institutions like JPMorgan choice,” said Mr. Merritt, instead there is also a trend at the other end or,in some cases,to even continue to on Long Island about providing and Goldman, hedge funds and investing revenue in marketing to of the spectrum,toward startups go- grow or run their businesses while a $2.5 million in expansion capital larger corporate entities,” said Jalak rapidly acquire customers. ing public earlier than expected,said lawsuit plods along. while it pursues an appeal in a con- Jobanputra, founder and managing Proving they have recurring rev- Venrock’s Mr. Beim. “People have “Many of the companies that tract dispute. Similarly, Lake partner of FuturePerfect Ventures, enue is critical for companies that recognized the market is great for we’re dealing with are companies Whillans sometimes underwrites an early-stage venture fund in Man- want to hit it big. Chelsea-based fundraising and exits right now, but that have emerging technologies operating expenses. hattan. Olapic—a visual-marketing firm they don’t know how long it will last, that are potentially disruptive,” said “Our capital can be used not just that enables brands to find and use so in the last couple of years we have Boaz Weinstein, a principal at Lake for litigation but to grow the com- Building awareness customer-generated images of their also seen tech companies go for an Whillans. “We see a lot of claims pany,” said Lee Drucker, a principal As they wait longer to exit, com- products—is focusing on building a IPO sooner, when they are below where they turn to a strategic in- at Lake Whillans.“We often pay for panies are putting their growth on strong financial base for a potential $100 million in annual revenue.” vestor as a partner and the partner- other operating needs because we steroids to maximize their value. IPO. CEO and co-founder Pau Misti Ushio, chief strategy offi- ship goes awry because the [big] believe the company will get back on “We’re pushing as fast and as hard as Sabria said Olapic’s revenue is high- cer at Harris & Harris Group, an company decides they don’t need track with the litigation.” we can, because the greater the an- ly predictable and scalable. early-stage, publicly traded venture the smaller company.” In the meantime, the Chamber gle of your curve, the more valuable “For an IPO, you have to have firm in Manhattan,said there is now Still, the business is controversial. of Commerce is pushing for more you are,” said Dane Atkinson, a co- $100 million in revenue, and we are a “whole ecosystem of bankers, ad- More than half the states permit it, regulation and standards, such as founder and CEO of SumAll, a pretty much on track to do that in visers and lawyers that understand and the U.S.Chamber of Commerce, notifying a judge and defendants startup that gives customers, mostly four years,” Mr. Sabria said. Olapic how to do smaller IPOs—like $20 for one, is worried that it will pour that there is a third-party funder on businesses, the information about launched in April 2011 and now has million or $50 million, not hun- fuel on an already litigious system. the other side. them collected online. SumAll has 97 employees. Mr. Sabria would not dreds of millions. For those busi- “It really does change the way a raised about $15 million and has had disclose revenue but said the com- nesses, if they can access public Young industry defendant might handle or address 1,000% growth year-over-year but pany has raised $6 million and isn’t capital,that’s an enormous opportu- “Is this a course we want to take a case,” said the chamber’s Ms. is not profitable. yet profitable. nity,” she said. “It gives a startup ac- in the U.S. for our civil justice sys- Rickard. cess to a huge market they wouldn’t tem?” asked Lisa Rickard, president As for the firms, they say that have as a private company.” of the U.S.Chamber of Commerce’s they don’t need to be regulated, that RAKING IT IN To stave off an early acquisition Institute for Legal Reform in Wash- they fund only meritorious cases New York’s largest venture-backed tech exits, 2012-2014 or IPO and get a firm to $1 billion, ington, D.C. “Do we want it to be- and operate in accordance with eth- some investors are pumping more come a profit-making entity for pri- ical standards that ensure fairness COMPANY ACQUIRER YEAR VALUATION* investment capital into founders’ vate hedge funds?” and transparency.They liken the in- OnDeck Public 2014 $1.3B pockets. “Now I would say at least Litigation finance isn’t new. A dustry to the kind of innovation 20% of the B round goes to the small industry of lenders, such as America is known for. Tumblr Yahoo 2013 $1.1B founders so they don’t take the $12 LawCash and Oasis Legal Finance, “The American dream of innovat- Varonis Systems Public 2014 $524.4M million offer that comes around back personal-injury cases. But ing, doing something fresh and orig- next week,” said SumAll’s Mr. third-party funding in commercial inal, that’s what litigation finance is,” Public 2014 $494.2M Tremor Video Atkinson, who has built almost a lawsuits,especially in the U.S.,is still said Bentham US’ Mr. Sutton. Ⅲ Buddy Media Salesforce 2012 $745.0M dozen technology companies.“VCs young. It’s hard to know how active often have a higher risk tolerance the market is because there’s no For a look at how crowdfunding is changing Shutterstock Public 2012 $570.0M than we do, and they are looking for requirement for parties in a lawsuit litigation finance, see our Web story “Upstart *IPO valuations used are as of the opening of trading. Source: CB Insights the best maximization.” Ⅲ to disclose third-party funding disrupts litigation-finance market.”

12 | Crain’s New York Business | February 9, 2015 20150209-NEWS--0013-NAT-CCI-CN_-- 2/5/2015 5:40 PM Page 1

NEXT WEEK: THE The 30 largest mergers Largest Executive Recruiting Firms and acquisitions LIST Ranked by number of NY area recruiters in the New York area THE SCOOP TRENDS HEALTHY EXPANSION RECRUITERS HIRE AS JOB MARKET HEALS Projected NYC employment growth in selected industries, 2010-2020 ith the city’s unemployment rate dropping to 6.3% at the end of 2014, local Median recruiters are in such demand that some are doing their own internal Growth annual hiring. The 25 firms on Crain’s list added a total of 50 recruiters to Growth % forecast wage, 2014 handle the increased business fueled by robust economic growth, Health care support regulatory challenges and the need for talent to fight international +31.5% +47,200 $23,670 cybercrime.W Computer and mathematical “If our clients are hiring, if there are needs out there, we must hire,” said Edward Fleisch- +18.6% +21,880 $91,060 man, chief executive at Execu|Search (No. 6). The firm has hired six local recruiters since Business and financial 2013.Mr.Fleischman credited the economy’s rebound and the falling unemployment rate +15.9% +43,240 $82,420 for a solid year of business. Architecture and engineering “When there’s a fluid economy with cash, it means investment banks do better, hedge +10.7% +3,220 $73,120 funds do better, and also law firms,” he said. Education, training and libraries Recruiters say the market has changed since the recession, and employers are looking +8.6% +23,180 $61,660 for a new breed of employees. Linda Schaler, president of Stephen-Bradford Search (No. 15) Legal has seen a shift to tightly defined niche jobs at the intersection of marketing, communi- +7.9% +5,930 $117,220 cations and technology.“The job profiles are much more specific and granular,” she said. Source: NYS Department of Labor

“The generalist is out.” istock Ms. Schaler estimated that up to 70% of her business comes from these 21st- A TALE OF TWO AGENCIES WAGE RECOVERY century positions, with an emphasis on big data, analytics and market science. Projections for new jobs in NYC (in thousands) Average wage increases in securities have outpaced “Accountability is the name of the game,” she said. “Clients want to be able to account gains in other sectors. Average salaries in 2014: for their dollars.” Independent Budget Office Office of Management and Budget Regulatory and compliance officers continue to be in demand as companies settle 20% All jobs Securities All other 85.8 into regulations from the Affordable Care Act and the Volcker Rule portion of Dodd- 79.5 15 78.0 74.9 $426,149 Frank. 10 5 While hiring in compliance continues to be strong, Jason Wachtel, managing partner at 56.0 56.9 58.0 53.0 0 JW Michaels & Co. (No. 11), said he expects revenue from retained searches in risk manage- 45.3 47.0 -5 ment to double in 2015 over its “multimillion-dollar” figure in 2014. Clients have also re- -10 $87,642 sponded to recent high-profile hacking attacks, like those against Sony and Target, by re- -15 cruiting cybersecurity experts. -20 $73,313 “What’s a couple of million dollars in recruiting as opposed to losing clients and cus- -25 tomers?” Mr. Wachtel asked. 2014 2015 2016 2017 2018 ’08 ’09 ’10 ’11 ’12 ’13 ’14 —nicholas wells Source: NYC Independent Budget Office Source: NYC Independent Budget Office

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February 9, 2015 | Crain’s New York Business | 13 20150209-NEWS--0014-NAT-CCI-CN_-- 2/5/2015 5:41 PM Page 1

THE LIST Largest Executive Recruiting Firms

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14 | Crain’s New York Business | February 9, 2015 20150209-NEWS--0015-NAT-CCI-CN_-- 2/5/2015 5:40 PM Page 1

IN THE BOROUGHS QUEENS

Capital Partners, plan a second, far Elmhurst housing larger project across the street. The six-story Elm West will have 130 Continued from Page 3 gap between the old and new.Chris- apartments and, like its sister prop- these buildings also far exceeded the tian Cassagnol, district manager of erty,will offer views of the Manhat- norm. At Elm East, a two-year-old Community Board 4, points out tan skyline through floor-to-ceiling luxury rental building located at that very few residents can afford windows. 86-55 Broadway, a one-bedroom the new apartments and condos, yet apartment goes for $2,400 a month, more units are still coming, and at More construction on tap

one-third higher than the average ever-higher prices. Future developments led by philip murtha rent in the area, At the Elm East on the corner of Asian-American investors include a NO DOCTORS IN THE HOUSE: A portion of old St. John’s Hospital is reborn as Queens Pointe, a according to real Broadway and Queens Boulevard, 69-unit residential condo building residential project. +53% estate agents. the developer sold all 83 condo- destined for 70-32 Queens Blvd., POPULATION gain, 1980-2014 “The new de- minium apartments within six built by Bayside-based investor recently bought the building site for marie Daraio, president of the Com- velopments are months of putting the building on Steve Cheung, and a likely low-rise $26 million. munities of Maspeth and Elmhurst changing the the market in 2012. Now Asian- residential property behind the “The high-priced rentals are pos- Together civic association. “But it $53K face of the neigh- American developers James and Jer- Queens Mall at 88-18 Justice Ave. itive in that they will bring revenue would be nicer if there were a mix of MEDIAN borhood,” said ry Pi,founders of Flushing-based Pi Flushing-based investor Jiashu Xu into the neighborhood,” said Rose- more affordable new housing,too.”Ⅲ household Anthony Chen,a income broker at Best Realty in 70% Elmhurst. FOREIGN-BORN The force population driving that sweeping trans- formation is the same one seen in several other parts of Queens, as a growing number of Asian-Ameri- can investors purchase building sites and construct residential properties, many of which are either rented or sold to first- or second-generation Chinese immigrants. A rush to build During the past three years, newcomers from China have made up the majority of the 75,000 immi- grants who have streamed into New York City,according to Department of City Planning data. The largest number of them, in turn,have settled in Elmhurst,mak- ing it second only to Flushing as the borough’s most populous Chinese neighborhood. The Asian influx is clearly reflected along Broadway, Elmhurst’s main commercial thor- oughfare.Chinese shops like Yi Mei Bakery, KBCB Grocery and Asia Bank now stand shoulder-to- shoulder with Thai eateries, Korean delis and others. Developers looking to cater to the needs of that expanding popula- tion are rushing to build new hous- ing.Among the largest of those new projects is Queens Pointe.Steve Wu and Harry Miller, its developers, are converting a portion of the former site of St. John’s Hospital into 150 high-end rental apartments. Mr. Wu bought the 260,000- square-foot property at 90-02 Queens Blvd., across from the sprawling Queens Center Mall, in 2013,paying nearly $55 million.Just four years earlier, the previous own- er had paid $20 million for the build- ing after the hospital closed down. Messrs.Wu and Miller plan to spend $45 million on its conversion. When it hits the market in the next year, Queens Pointe will have 144 studio, one- and two-bedroom apartments, including eight pent- houses featuring 15-foot ceilings and private roof decks, according to Josh Zegen of Madison Realty Cap- ital, an investor in the project. The developers expect to achieve rents of up to $45 per square foot, which translates to well over $2,500 a month for a one-bedroom unit. But longtime residents say the rapidly appreciating residential market underscores the widening

February 9, 2015 | Crain’s New York Business | 15 P016-17CL_CN_20150209.qxp 2/6/2015 11:05 AM Page 16

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR EMAIL [email protected] FINANCIAL OPPORTUNITIES PUBLIC & LEGAL NOTICES IN MORTGAGE NOTES Notice of Formation of TYCHE, LLC. Notice of Formation of JUJA DIMES BIG TIME LLC, a domestic NOTICE OF FORMATION OF LIMITED Arts. of Org. filed with Secy. of State SOUTHAMPTON LLC. Arts. of Org. LLC, filed with the SSNY on LIABILITY COMPANY. 14 LEROY • Mortgages For Sale of NY (SSNY) on 01/02/15. Office filed with Secy. of State of NY (SSNY) 11/26/14. Office location: New York STREET DARLING LLC Articles of location: NY County. SSNY designated on 01/22/15. Office location: NY County. SSNY is designated as agent Organization were filed with the • Ranging from $149K - $800K as agent of LLC upon whom process County. Princ. office of LLC: 109 upon whom process against the LLC Secretary of State of New York (SSNY) • Low Loan to Value against it may be served. SSNY shall Greene St., Apt. 5B, NY, NY 10012. may be served. SSNY shall mail 1/14/15. Office location: NY County. mail process to Wendy L. Schoen, SSNY designated as agent of LLC process to The LLC, Attn: Ms. SSNY has been designated as agent • Accruing Default Interest @ 24% 301 E. 62nd St., #14B, NY, NY 10065. upon whom process against it may Sabrina Desousa, 143 Division St., of the LLC upon whom process The regd. agent of the company be served. SSNY shall mail process NY, NY 10002. General Purposes against it may be served and shall Call: J. Hughis @ 888-377-3872 upon whom and at which process to Jonathan J. Russo, Esq., Pillsbury mail a copy of process to 14 LEROY against the company can be served Winthrop Shaw Pittman LLP, 1540 Notice of Formation of Meridion STREET DARLING LLC, 708 Third is Corporation Service Co., 80 State Broadway, NY, NY 10036. Purpose: Consulting LLP filed with the Secretary Avenue, 20th fl., New York, New St., Albany, NY 12207. Purpose: Any Any lawful activity. of State of New York (SSNY) on York, 10017, attention Rubin Ferziger. POSITIONS lawful activity. 1/14/2015. Office location: New York Purpose: for any lawful purpose. SAC427 111414 LLC. Appl. for Auth. County. SSNY designated agent filed with Secy. of State of NY (SSNY) AVAILABLE Notice of Formation of KASURA upon whom process may be served Notice of Formation of Francmen on 01/14/15. Off. loc: New York Co. PARTNERS I LLC. Arts. of Org. filed to 7014 13 Ave., #202, Brooklyn, NY, Jamaica Ventures LLC. Arts. of Org. with Secy. of State of NY (SSNY) on Orig. juris: DE. SSNY des. as agent filed with Secy. of State of NY (SSNY) American Jewish World Service, Inc. 11228. Purpose: any lawful purpose. 01/09/15. Office location: NY County. of LLC upon whom process may be on 1/13/15. Office location: NY has an opening available at its 45 W SSNY designated as agent of LLC served. SSNY shall mail process to County. SSNY designated as agent 36th St, NY, NY 10018 location for the upon whom process against it may c/o Robinson Brog, et al., Attn: Roger Notice of formation of 817 Second of LLC upon whom process against position of Sr. Program Mgr-Africa. be served. SSNY shall mail process A. Raimond, 875 3rd Ave, 9th Fl., New Avenue TC LLC. Arts of Org filed with it may be served. SSNY shall mail Oversee & coordinate the activities of to Seward & Kissel LLP, Attn: David York, NY 10022. Purpose: General. Secy of State of NY (SSNY) on 8/12/14. process to: c/o The LLC, 1412 issue-based social service programs E. Stutzman, One Battery Park Plaza, Office location: NY Co. SSNY desig- Broadway, 3rd Fl., NY, NY 10018. Notice of Formation of BFV in Democratic Republic of Congo NY, NY 10004. Purpose: Any lawful nated agent upon whom process may Purpose: any lawful activity. Management LLC. Arts. of Org. filed (DRC) & Cote d'Ivoire. Must have a activity. be served & shall mail copy of process with NY Dept. of State on 11/17/14. against LLC to principal business HOV SHORT FILM, LLC, Arts. of Org. Bach’s deg or foreign equiv in Public Office location: NY County. Sec. of Notice of Articles of Organization 101 address:150 W28 St, Ste 403, NY NY filed with the SSNY on 10/20/2014. Admin, Organizational Mgmt or a rel State designated agent of LLC upon W. 79th St. Holdings LLC filed with 10001. Purpose:any lawful act. Office loc: NY County. SSNY has field & 2 yrs of exp in the job offered whom process against it may be NY Secretary of State (SSNY) on been designated as agent upon or 2 yrs of exp with an intl dev’t or served and shall mail process to the 12/01/2014. Office location: New York Notice of formation of Assure Funding whom process against the LLC may human rights organization. All stated principal business address: 254 W. 54th County. SSNY designated as agent of LLC. Arts of Org filed with Secy of be served. SSNY shall mail process exp must include program mgmt exp St., 10th Fl., NY, NY 10019, Attn: Tom LLC upon whom process against it State of NY (SSNY) on 12/11/14. Office to: 15 Broad St., #930, NY, NY with civil society organizations; Viertel. Purpose: any lawful activity. may be served. SSNY shall mail location: NY Co. SSNY designated 10005. Reg. Agent: David Elfenbein, reviewing & approving budget & grant process to: O’Hare Parnagian LLP, 82 agent upon whom process may be 15 Broad St., #930, NY, NY 10005. proposals; performing organizational Siegel/Ringler Family LLC. Arts. of Wall Street, Ste 300, NY, NY 10005- Org. filed with Secy. of State of NY served & shall mail copy of process Purpose: Any Lawful Purpose. dev’t; and strategic work with African 3686, Att: Christopher P. Parnagian. (SSNY) on 09/13/13. Off. loc.: NY against LLC to principal business Qualification of Blackstone Real Estate civil society organizations with Purpose: Engage in any lawful activity. Co. SSNY des. as agent of LLC upon address:150 W28 St, Ste 403, NY NY Partners VIII.F L.P. Authority filed with regards to natural resource rights or whom process may be served. SSNY 10001. Purpose:any lawful act. the Sect of State of NY (SSNY) on sexual health rights or civil & political Notice of Formation of BEJO & LAPPAS, shall mail process to c/o Robinson 11/20/14. Office Loc: NY County. LP rights. Must also have at least 2 yrs LLC. Arts. of Org. filed with Secy. of Brog, et al., Attn: Steve R. Graber, Notice of Qualification of 2403 formed in DE on 11/12/14. SSNY has of exp working and/or living in Africa. State of NY (SSNY) on 06/27/14. Esq., 875 3rd Ave, 9th Fl., New York, QUEENS PLAZA NORTH LLC. Appl. been designated as agent of LP upon Must be willing to travel internationally Office location: NY County. SSNY NY 10022. Purpose: General. for Auth. filed with Secy. of State of NY up to 15% of the time. designated as agent of LLC upon (SSNY) on 01/08/15. Office location: whom process against it may be whom process against it may be NOTICE OF FORMATION OF Advance NY County. LLC formed in Delaware served and shall mail process to: c/o Global Health, LLC. Articles of Organ- (DE) on 12/23/14. Princ. office of The Blackstone Group L.P., 345 Park Please send resume to: served. SSNY shall mail process to Corporation Service Co., 80 State St., ization filed with the Secretary of State LLC: 152 W. 57th St., 60th Fl., NY, Avenue, NY, NY 10154. DE address J. Wald, Associate Director, Albany, NY 12207, regd. agent upon of NY (SSNY) on December 4, 2014. NY 10019. SSNY designated as of LP: 200 Bellevue Pkwy, Ste 210, Human Resources, whom and at which process may be Principal business address is 140 7th agent of LLC upon whom process Wilmington, 19809. Name/addr of American Jewish World Service, Inc., served. Purpose: Any lawful activity. Ave., NY, NY, 10011. SSNY has been against it may be served. SSNY shall genl ptr avail from SSNY. Cert of LP 45 W 36th St, 11th Floor, NY, NY 10018. designated as agent upon whom mail process to the LLC at the princ. filed with DE Sect of State, 401 Notice of Formation of Limited process against it may be served. office of the LLC. DE addr. of LLC: Federal St, Ste 4, Dover, DE 19901. Intel Americas, Inc. has opening(s) Liability Company (LLC) Name: 149 Purpose: any lawful act or activity. 2711 Centerville Rd., Ste. 400, Purpose: any lawful activity. BAYARD LLC. Articles of Organization Wilmington, DE 19808. Cert. of Form. in New York, NY. Combination PAIGE PROPERTIES LLC, a foreign Notice of Formation: Greenpoint ed/exp accepted in some positions filed by the Department of State of filed with DE Secy. of State, Div. of New York on: 10/29/2014. Office LLC, filed with the SSNY on Corps., John G. Townsend Bldg., Pencil Works LLC, files with SECY of in lieu of degree. To apply, email location: County of New York. 12/12/14 under the fictitious name 401 Federal St., Ste. 4, Dover, DE State of NY on 11/19/14. Off. Loc.: resume to [email protected] Purpose: any and all lawful activities. Paige Properties NY LLC. Office 19901. Purpose: Any lawful activity. NY County. SSNY designated as and reference the job # below. Secretary of State of New York location: New York County. SSNY is agent of LLC upon process may be Apply to each job # of interest. (SSNY) designated as agent of LLC designated as agent upon whom Notice of Qualification of RELATED served. SSNY shall mail process to: Applications will be accepted upon whom process against it may process against the LLC may be REAL ESTATE FUND II (FEEDER), L.P. 160 6th Ave., #3, NY, NY 10013. through 04/02/15. EOE be served. SSNY shall mail a copy of served. SSNY shall mail process to Appl. for Auth. filed with Secy. of State Purpose: Any Lawful Activity. The LLC, 94 Sturge Ridge Rd., of NY (SSNY) on 12/24/14. Office process to: c/o Bryan Min, 149 Notice of Formation of LEGUCA LLC. Wilton, CT 06897. General Purposes. location: NY County. LLC formed in Business Analyst—Conduct business Bayard Street, Brooklyn, NY 11222. Arts. of Org. filed with Secy. of State Cayman Islands (C.I.) on 12/08/14. process analysis as project manager Notice of Qualification of Barclays of NY (SSNY) on 12/26/14, becoming NOTICE OF FORMATION OF Bernie Princ. office of LLC: 60 Columbus or as part of large project team. Wealth Advisor Series - International effective on 01/02/15. Office location: Young Entertainment Enterprises, Circle, NY, NY 10023. SSNY designated Requires BS+5 yrs exp OR Value Equity III L.P. Authority filed with NY County. SSNY designated as LLC. Articles of Organization filed as agent of LLC upon whom process MS+3 yrs exp (#650279). NY Dept. of State on 1/8/15. Office agent of LLC upon whom process with the Secretary of State of NY against it may be served. SSNY shall location: NY County. Princ. bus. addr.: against it may be served. SSNY shall (SSNY) on November 11, 2014. mail process to c/o Related Fund 200 Park Ave., NY, NY 10166. LP mail process to c/o Zach Feuer, 548 Office location: NEW YORK County. Management, LLC at the princ. office formed in DE on 11/17/14. NY Sec. of W. 22nd St., NY, NY 10011. Purpose: SSNY has been designated as agent of the LLC. C.I. addr. of LLC: c/o State designated agent of LP upon Any lawful activity. PUBLIC NOTICE upon whom process against it may whom process against it may be Maples Corporate Services Limited, be served. The Post Office address served and shall mail process to: c/o P.O. Box 309, Ugland House, Grand Notice of Formation of FoxHog Notice is hereby given, pursuant to to which the SSNY shall mail a copy CT Corporation System, 111 8th Ave., Cayman, C.I. KY1-1104. Cert. of Form. PRODUCTIONS LLC. Arts. of Org. law, that the NYC Department of of any process against the LLC NY, NY 10011, regd. agent upon filed with Registrar of Companies, P.O. filed with Secy. of State of NY (SSNY) Consumer Affairs will hold a public served upon him/her is: 45 West whom process may be served. DE Box 123, Ground Fl., Government on 12/17/14. Office location: NY hearing on Wednesday, Febuary 25, 60th Street, #10D, New York, NY addr. of LP: c/o The Corporation Admin. Bldg., 133 Elgin Ave., George County. Princ. office of LLC: Sandra 2015 at 2:00 p.m. at 66 John Street, 10023. The principal business Trust Co., 1209 Orange St., Town, Grand Cayman, C.I. KY1- Gotham Meehan, 220 E. 73rd St., Ste. 11th floor, on a petition for Philippe address of the LLC is: 45 West 60th Wilmington, DE 19801. Name/addr. 9000. Purpose: Any lawful activity. 5C, NY, NY 10021. SSNY designated NYC I LLC to continue to maintain, Street, #10D, New York, NY 10023. of genl. ptr. available from NY Sec. of as agent of LLC upon whom process and operate an small unenclosed Purpose: any lawful act or activity. State. Cert. of LP filed with DE Sec. Notice of Qualification of Carlyle Asia against it may be served. SSNY sidewalk café at 33 E 60th St in the of State, 401 Federal St., Dover, DE Structured Credit Opportunities Fund, shall mail process to the LLC at the Borough of Manhattan for a term of Notice of Qualification of CORE 19901. Purpose: all lawful purposes. L.P. Authority filed with NY Dept. of addr. of its princ. office. Purpose: two years. Request for copies of the AMSTERDAM LLC. Appl. for Auth. State on 12/11/14. Office location: NY Any lawful activity. revocable consent agreement may filed with Secy. of State of NY (SSNY) Notice of Qualification of UE County. LP formed in Cayman Islands be addressed to: Department of on 01/22/15. Office location: NY Management LLC. Authority filed (CI) on 7/18/14. NY Sec. of State Qualification of Blackstone Real Estate Consumer Affairs, Attn: Foil Officer, County. LLC formed in Delaware (DE) with NY Dept. of State on 11/18/14. designated agent of LP upon whom Partners VIII.TE.1 L.P. Authority filed 42 Broadway, New York, NY 10004. on 01/14/15. Princ. office of LLC: 60 Office location: NY County. Princ. bus. process against it may be served and with the Sect of State of NY (SSNY) Columbus Circle, NY, NY 10023. addr.: 210 Route 4 East, Paramus, NJ shall mail process to the principal on 11/20/14. Office Loc: NY County. SSNY designated as agent of LLC 07652. LLC formed in DE on 10/7/14. business addr.: c/o The Carlyle Group, LP formed in DE on 11/12/14. SSNY PUBLIC & LEGAL NOTICES upon whom process against it may NY Sec. of State designated agent of 520 Madison Ave., NY, NY 10022. CI has been designated as agent of LP be served. SSNY shall mail process LLC upon whom process against it addr. of LP: c/o Intertrust Corporate upon whom process against it may Notice is hereby given a license, to c/o Corporation Service Co., 80 may be served and shall mail process Services (Cayman) Ltd., 190 Elgin be served and shall mail process to: number (PENDING) for on-premises State St., Albany, NY 12207-2543. to: c/o CT Corporation System, 111 Ave., George Town, Grand Cayman c/o The Blackstone Group L.P., 345 Liquor has been applied for by the DE addr. of LLC: c/o CSC, 2711 8th Ave., NY, NY 10011, regd. agent KY1-9005, CI. Name/addr. of genl. Park Avenue, NY, NY 10154. DE undersigned to sell liquor at retail in Centerville Rd., Ste. 400, Wilmington, upon whom process may be served. ptr. available from NY Sec. of State. address of LP: 200 Bellevue Pkwy, a Restaurant under the Alcoholic DE 19808. Cert. of Form. filed with DE addr. of LLC: 1209 Orange St., Cert. of LP filed with Registrar of Ste 210, Wilmington, 19809. Name/ Beverage Control Law at 1087 Secy. of State of DE, John G. Wilmington, DE 19801. Cert. of Form. Exempted LPs, Govt. Administration addr of genl ptr avail from SSNY. Cert Broadway, New York, NY 11221 for Townsend Bldg., Federal and Duke filed with DE Sec. of State, 401 Bldg., 133 Elgin Ave., George Town, of LP filed with DE Sect of State, 401 on premises consumption. 1087 of York Sts., Dover, DE 19901. Federal St., Dover, DE 19901. Grand Cayman, CI. Purpose: all Federal St, Ste 4, Dover, DE 19901. Broadway Inc. Purpose: Any lawful activity. Purpose: any lawful activity. lawful purposes. Purpose: any lawful activity.

16 | Crain’s New York Business | February 9, 2015 P016-17CL_CN_20150209.qxp 2/6/2015 11:05 AM Page 17

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR EMAIL [email protected] PUBLIC & LEGAL NOTICES

ZOE HICKS MARRIAGE AND FAMILY CLASSICALLY BEAUTIFUL, LLC, a Notice of formation of Assure Global Notice of Qualification of HAVAS Notice of Qualification of Carlyle Asia THERAPY, PLLC, a domestic PLLC, domestic LLC, filed with the SSNY on LLC. Arts of Org filed with Secy of PEOPLE, LLC. Appl. for Auth. filed Structured Credit Opportunities Arts. of Org. filed with the SSNY on 10/17/14. Office location: New York State of NY (SSNY) on 12/11/14. with Secy. of State of NY (SSNY) on Fund-A, L.P. Authority filed with NY 9/25/14. Office location: New York County. SSNY is designated as agent Office location:NY Co. SSNY desig- 11/19/14. Office location: NY County. Dept. of State on 12/11/14. Office County. SSNY is designated as agent upon whom process against the LLC nated agent upon whom process may LLC formed in Delaware (DE) on location: NY County. LP formed in upon whom process against the PLLC may be served. SSNY shall mail be served & shall mail copy of process 11/14/83. Princ. office of LLC: 200 Cayman Islands (CI) on 11/17/14. NY may be served. SSNY shall mail process to c/o Alan Markle WMSHB, against LLC to principal business Hudson St., NY, NY 10013. SSNY Sec. of State designated agent of LP process to: The PLLC, 521 S. Marks 101 Larkspur Landing Cir., Ste. 200, address:150 W28 St, Ste 403, NY NY designated as agent of LLC upon upon whom process against it may be Ave., Apt. 4E, Brooklyn, NY 11238. Larkspur, CA 94939. General Purposes. 10001. Purpose:any lawful act. whom process against it may be served and shall mail process to the Purpose: Marriage and Family Therapy. served. SSNY shall mail process to principal business addr.: c/o The Notice of Formation of PBE LLC Arts. Notice of formation of Tres Carnes the LLC at the princ. office of the LLC. Carlyle Group, 520 Madison Ave., NY, Notice of Formation of MANGO of Org. filed with Secy. of State of NY 391 8th Avenue LLC. Arts of Org filed DE addr. of LLC: 2711 Centerville NY 10022. CI addr. of LP: c/o TANGO LLC. Arts. of Org. filed with (SSNY) on 12/15/14. Office location: with Secy of State of NY (SSNY) on Rd., Ste. 400, Wilmington, DE 19808. Intertrust Corporate Services (Cayman) Secy. of State of NY (SSNY) on NY County. SSNY designated as agent 11/20/14. Office location: NY Co. SSNY Cert. of Form. filed with DE Secy. of Ltd., 190 Elgin Ave., George Town, 01/12/15. Office location: NY County. of LLC upon whom process against it designated agent upon whom process State, Townsend Bldg.,Ste. 3, 401 Grand Cayman KY1-9005, CI. Name/ Princ. office of LLC: c/o Rosenberg & may be served. SSNY shall mail process may be served & shall mail copy of Federal St., Dover, DE 19901. Purpose: addr. of genl. ptr. available from NY Estis, P.C., 733 Third Ave., NY, NY to c/o Yiannes Einhorn, 316 E. 22nd process against LLC to principal General marketing, advertising, & Sec. of State. Cert. of LP filed with 10017. SSNY designated as agent of St., 7th Fl., NY, NY 10010. Purpose: business address: 150 W28 St, Ste 403, public relations services. Registrar of Exempted LPs, Govt. LLC upon whom process against it may NY NY 10001. Purpose:any lawful act. Administration Bldg., 133 Elgin Ave., Any lawful activity. 35 PERRY ST. OWNERS LLC. Art. of be served. SSNY shall mail process George Town, Grand Cayman, CI. Org. filed with the SSNY on 12/02/14. to the LLC at the addr. of its princ. Notice of Formation of GOLDEN Purpose: all lawful purposes. EP Interiors, LLC, a domestic LLC, Office: New York County. SSNY desig- office. Purpose: Any lawful activity. GUN, LLC. Arts. of Org. filed with filed with the SSNY on 9/16/2014. Secy. of State of NY (SSNY) on nated as agent of the LLC upon whom Notice of formation of Trrigr LLC. Office location: New York County. 01/20/15. Office location: NY County. process against it may be served. SSNY Articles of organization filed with the Solid Air Design LLC, Arts of Org SSNY is designated as agent upon SSNY designated as agent of LLC shall mail copy of process to the LLC, Secretary of State of New York (SSNY) filed with SSNY on 01/28/15. Off. Loc.: whom process against the LLC may upon whom process against it may c/o Karasyk & Moschella, LLP, 233 on September 29, 2014. Office located New York County, SSNY designated be served. SSNY shall mail process be served. SSNY shall mail process Broadway, Suite 2340, New York, NY at 350 5th Avenue, Suite 731, New as agent of LLC upon whom process to The LLC, 140 West End Ave 17G to c/o BFFA, 1430 Broadway, Ste. 10279. Purpose: Any lawful purpose. York, NY 10118. SSNY has been against it may be served. SSNY shall NY, NY 10023. Purpose: Staging 1208, NY, NY 10018. Purpose: Any designated for service of process. mail a copy of process to: The LLC, and interior design. lawful activity. Sun Arthur LLC. Arts. of Org. filed SSNY shall mail copy of any LLC to 102 W 14th St, 2F, New York, NY with Secy. of State of NY (SSNY) on c/o Trrigr LLC 350 5th Avenue, Suite 10011. Purpose: to engage in any Qualification of Blackstone Real Estate 12/09/14. Off. loc.: NY Co. SSNY 731, New York, NY 10118. Purpose: lawful act. Notice of Qualification of VNO 33-00 Partners VIII.TE.2 L.P. Authority filed Northern Blvd LLC. Authority filed designated as agent of LLC upon any lawful purpose. with the Sect of State of NY (SSNY) with NY Dept. of State on 12/2/14. whom process may be served. SSNY Notice of formation of IBP Group LLC. NOTICE OF FORMATION OF CNY on 11/19/14. Office Loc: NY County. Office location: NY County. Princ. bus. shall mail process to 52 Vanderbilt Articles of organization filed with the Construction 701 LLC. Arts of Org filed LP formed in DE on 11/12/14. SSNY addr.: 210 Route 4 East, Paramus, NJ Ave., Ste. 403, New York, NY 10017. Secretary of State of N.Y. (SSNY) on with Secy of State of NY (SSNY 6/17/13). has been designated as agent of LP 07652. LLC formed in DE on 11/19/14. Purpose: General. 10/28/2014. Office location: New York Office Location NY County. SSNY upon whom process against it may NY Sec. of State designated agent of County. SSNY has been designated designated agent upon whom process be served and shall mail process to: LLC upon whom process against it SAN BLAS LLC. Art. of Org. filed as agent of the LLC upon whom may be served and shall mail process c/o The Blackstone Group L.P., 345 may be served and shall mail process with the SSNY on 10/23/14. Office: process against it may be served. against LLC to principal business Park Avenue, NY, NY 10154. DE to: c/o CT Corporation System, 111 New York County. SSNY designated SSNY shall mail process to the LLC, address: 214 West 39th Street, NY, address of LP: 200 Bellevue Pkwy, Ste 8th Ave., NY, NY 10011, regd. agent as agent of the LLC upon whom 350 Fifth Ave, 59FL, Ste 5900, New NY 10018. Purpose: Any lawful act. 210, Wilmington, 19809. Name/addr upon whom process may be served. process against it may be served. York, NY 10118. Purpose: Any lawful of genl ptr avail from SSNY. Cert of DE addr. of LLC: 1209 Orange St., SSNY shall mail copy of process to activity. Notice of Formation of IMA Systems LP filed with DE Sect of State, 401 Wilmington, DE 19801. Cert. of Form. the LLC, 79 Washington Place, Suite LLC Arts. of Org. filed with Secy. of Federal St, Ste 4, Dover, DE 19901. filed with DE Sec. of State, 401 #1C, New York, NY 10011. Purpose: State of NY (SSNY) on 12/19/14. Notice of Formation of MIRACLE ON Purpose: any lawful activity. Federal St., Dover, DE 19901. Any lawful purpose. Office location: NY County. SSNY 34, LLC Arts. of Org. filed with Secy. Purpose: any lawful activity. designated as agent of LLC upon Notice of Qualification of Bedrock of State of NY (SSNY) on 10/09/14. NOTICE OF FORMATION OF HEADWIN whom process against it may be Office location: NY County. SSNY Manufacturing Company, LLC. INTERNATIONAL LOGISTICS LLC. Notice of Qualification of PROTEAN served. SSNY shall mail process to designated as agent of LLC upon whom Authority filed with NY Dept. of State Application for Authority filed with COMPANY, LLC. Appl. for Auth. filed c/o Corporation Service Co., 80 process against it may be served. on 1/12/15. Office location: NY the Secretary of State of New York with Secy. of State of NY (SSNY) on State St., Albany, NY 12207-2543. SSNY shall mail process to Troutman County. LLC formed in TX on 5/30/14. (SSNY) on 11/13/2014. Office location: 12/24/14. Office location: NY County. Purpose: Any lawful activity. Sanders LLP, Attn: Brett R. Baker, NY Sec. of State designated agent of NEW YORK County. LLC formed in LLC formed in Delaware (DE) on Esq., 405 Lexington Ave., NY, NY LLC upon whom process against it Notice of Formation of GOV BALL TEXAS on 07/02/2014. SSNY has 12/11/12. SSNY designated as agent 10174. Purpose: Any lawful activity. may be served and shall mail process 2015, LLC. Arts. of Org. filed with NY been designated as an agent upon of LLC upon whom process against it to: c/o CT Corporation System, 111 Dept. of State on 11/17/14. Office whom process against it may be may be served. SSNY shall mail process 8th Ave., NY, NY 10011, regd. agent location: NY County. Sec. of State Notice of Qualification of Filterfresh served. The Post Office address to to c/o Corporation Service Co., 80 upon whom process may be served. designated agent of LLC upon whom Coffee Service, LLC. Authority filed which the SSNY shall mail a copy of State St., Albany, NY 12207-2543. TX and principal business address: process against it may be served and with NY Dept. of State on 12/9/2014. any process against the LLC served DE addr. of LLC: c/o CSC, 2711 1039 E. 15th St., Plano, TX 75074. shall mail process to the principal Office location: NY County. Princ. bus. upon him/her is: 1271 AVENUE OF Centerville Rd., Ste. 400, Wilmington, Cert. of Org. filed with TX Sec. of business address: 45 E. 9th St., Ste. addr.: 1101 Market St., Philadelphia, THE AMERICAS, C/O RAYMOND DE 19808. Cert. of Form. filed with DE State, 1019 Brazos, Austin, TX 46, NY, NY 10003, Attn: Thomas PA 19107. LLC formed in DE on COUNTER, 43RD FLOOR, NEW Secy. of State, 401 Federal St., Dover, 78701. Purpose: all lawful purposes. Russell. Purpose: any lawful activity. 9/10/1984. NY Sec. of State designated YORK, NY 10020. The principal DE 19901. Purpose: Any lawful activity. agent of LLC upon whom process business address of the LLC is: 756 Notice of Qualification of Avalon Notice of Formation of HILL HOUSE against it may be served and shall PORT AMERICA PLACE, SUITE 815, Notice of Qualification of KGS-ALPHA NY LLC. Arts. of Org. filed with Secy. mail process to: c/o CT Corporation GRAPEVINE, TX 76051. TEXAS Columbus Circle, LLC. Authority filed FINANCIAL SERVICES, LLC. Appl. for with NY Dept. of State on 1/20/15. of State of NY (SSNY) on 12/17/14. System, 111 8th Ave., NY, NY 10011, address of LLC is: 756 PORT Auth. filed with Secy. of State of NY Office location: NY County. SSNY regd. agent upon whom process may AMERICA PLACE, SUITE 815, Office location: NY County. Princ. bus. (SSNY) on 11/10/14. Office location: addr.: 671 N. Glebe Rd., Ste. 800, designated as agent of LLC upon be served. DE addr. of LLC: 1209 GRAPEVINE, TX 76051. Certificate NY County. LLC formed in Delaware Arlington, VA 22203. LLC formed in whom process against it may be Orange St., Wilmington, DE 19801. of LLC filed with Secretary of State (DE) on 10/17/14. SSNY designated DE on 1/16/15. NY Sec. of State served. SSNY shall mail process to Cert. of Form. filed with DE Sec. of of TEXAS located at: 1019 Brazos, as agent of LLC upon whom process designated agent of LLC upon whom c/o Paul Wrobleski, Clarfeld, 560 State, 401 Federal St., Dover, DE Austin, TX 78701. Purpose: any against it may be served. SSNY shall process against it may be served White Plains Rd., Tarrytown, NY 19901. Purpose: all lawful purposes. lawful act or activity. mail process to c/o Corporation and shall mail process to: c/o CT 10591. Purpose: Any lawful activity. Service Co., 80 State St., Albany, NY Corporation System, 111 8th Ave., NY, Notice of Formation of DT 153 12207-2543. DE addr. of LLC: 2711 NY 10011, regd. agent upon whom Centerville Rd., Ste. 400, Wilmington, Bruckner LLC. Art/Org. filed with SSNY process may be served. DE addr. of 10/3/13. NY office location: NY DE 19808. Cert. of Form. filed with LLC: c/o The Corporation Trust Co., Jeffrey W. Bullock, Secy. of State, County. SSNY designated as agent 1209 Orange St., Wilmington, DE for process. SSNY shall mail copy of Want To Get Your 401 Federal St., Dover, DE 19901. 19801. Cert. of Form. filed with DE Sec. Purpose: Any lawful activity. process to: c/o Princeton Holdings of State, 401 Federal St., Dover, DE LLC, 375 Park Ave., Ste 1604, NY, Company In Front Of New York City’s Qualification of Blackstone Tactical 19901. Purpose: all lawful purposes. NY 10152. Any lawful act or activity. Opportunities Fund (KG Co-Invest) L.P. Authority filed with the Sect of State Notice of Qualification of HAVAS Notice of Qualification of TribeTats Influential Business Professionals? of NY (SSNY) on 1/20/15. Office Loc: WORLDWIDE, LLC. Appl. for Auth. LLC. Appl. for Auth. filed with Secy. NY County. LP formed in Cayman filed with Secy. of State of NY (SSNY) of State of NY (SSNY) on 10/30/14. Islands on 12/2/14. SSNY has been on 03/20/14. Office location: NY Office location: NY County. LLC designated as agent of LP upon County. LLC formed in Delaware (DE) formed in Delaware (DE) on 10/20/14. whom process against it may be on 09/20/07. Princ. office of LLC: Princ. office of LLC: 79 Madison Ave., served and shall mail process to: 200 200 Hudson St., NY, NY 10013. SSNY Fl. 3, NY, NY 10016. SSNY designated Bellevue Pkwy, Ste 210, Wilmington, designated as agent of LLC upon as agent of LLC upon whom process Call Joanne Barbieri 19809. Cayman Islands address of whom process against it may be against it may be served. SSNY shall LP: 190 Elgin Avenue, George Town, served. SSNY shall mail process to mail process to c/o Corporation Grand Cayman, KY1-9005, Cayman the LLC at the princ. office of the LLC. Service Co. (CSC), 80 State St., at 212-210-0189 for Islands. Name/addr of genl ptr avail DE addr. of LLC: 2711 Centerville Albany, NY 12207-2543. DE addr. of from SSNY. Cert of LP filed with Rd., Ste. 400, Wilmington, DE 19809. LLC: c/o CSC, 2711 Centerville Rd., classified advertising opportunities. Registrar of Exempted Limited Cert. of Form. filed with DE Secy. of Ste. 400 Wilmington, DE 19808. Cert. Partnerships of the Cayman Islands, State, Townsend Bldg., 401 Federal of Form. filed with Secy. of State, 133 Elgin Ave, George Town, Grand St., Ste. 3, Dover, DE 19901. Purpose: John G. Townsend Bldg., 401 Cayman, KY1-9000, Cayman Islands. General marketing, advertising, & Federal St.-Ste. 4, Dover, DE 19901. Purpose: any lawful activity. public relations services. Purpose: Any lawful activity.

February 9, 2015 | Crain’s New York Business | 17 20150209-NEWS--0018-NAT-CCI-CN_-- 2/5/2015 5:38 PM Page 1

FOR THE RECORD

Seeks competitive sealed bids by 11 a.m. in the mid-$70s per square foot. Consolidated. The asking rent was $240 on Feb. 23 for the replacement of boilers per square foot. ABOUT THIS SECTION at Whitman Houses in Brooklyn. Bid ● 6D Global Technologies signed a five- FOR THE RECORD is a weekly listing of information from the public record documents are available Monday year lease for nearly 9,000 square feet at that can help businesspeople in the New York area find opportunities, through Friday, 9 a.m. to 4 p.m., for a 17 State St. The technology company STOCK TRANSACTIONS $25 fee in the form of a money order or expanded its existing lease in the potential new clients and updates on competitors. certified check payable to NYCHA. building, bringing its total space to Following are recent insider transactions at To ask questions or get more information on this section, contact Documents can be picked up at 90 13,400 square feet. The tenant and the New York’s largest publicly held companies Crain’s research department at [email protected]. Church St., Manhattan. To make landlord, RFR Realty, were represented filed with the Securities and Exchange inquiries, contact Vaughn Banks at in-house by RFR’s AJ Camhi, Steve Commission by executives and major (212) 306-6727 or vaughn.banks@ Morrows and Ryan Silverman. The shareholders. Listings are in order of nycha.nyc.gov. asking rent was $70 per square foot. transaction value.The information was NEW IN TOWN ● C2 Transportation Inc. obtained from Thomson Reuters. 136-20 38th Ave., Queens GOODS AND SERVICES RETAIL Companies that would like to have details Filed for Chapter 7 bankruptcy on Jan. ● Economic Development Corp. ● Sephora signed a lease for 11,300 ● New York Times Co. (NYT) of openings published should submit 22. The filing cites estimated assets of $0 Seeks requests for proposals by 4 p.m. on square feet at 112 W. 34th St. The Inmobiliaria Carso, S.A., exercised descriptions following this format to to $50,000 and estimated liabilities of Feb. 18 for a consultant or consultant makeup company will occupy space on options on 7,950,000 shares of common [email protected], with “New $100,001 to $500,000. The creditors team to conduct a feasibility study for an the ground floor. The tenant was stock at $6.36 per share on Jan. 14, in a in Town” in the subject line. with the largest unsecured claims are integrated flood protection system for represented by Crown Retail Services’ transaction worth $50,539,740. Garin Wong, owed $19,746.50; the U.S. the Brooklyn neighborhood of Red Virginia Pittarelli. The landlord, ● August Department of Treasury, owed Hook. The RFP is available for in- Empire State Realty Trust, was ● MasterCard Inc. (MA) 791 Lexington Ave., Manhattan $5,277.39; and Benny Chow, owed person pickup between 9:30 a.m. and represented by Cushman & Wakefield’s MasterCard Foundation sold 282,656 The French restaurant opened on the $4,000. 4:30 p.m., Monday through Friday, from Ian Lerner and Joanne Podell. The shares of common stock at prices Upper East Side. The menu includes NYCEDC, 110 William St., fourth asking rent was nearly $1,000 per ranging from $81.73 to $84.23 per share roasted chicken with carrots and ● Danbury Sports floor, Manhattan. To make inquiries, square foot. between Jan. 23 and Jan. 28, in a mushrooms, gnocchi in brown butter, 39 Fields Lane, North Salem, N.Y. contact Maryann Catalano at (212) 312- transaction worth $23,426,550. It now Jerusalem artichoke soup, cauliflower Filed for Chapter 11 bankruptcy on Jan. 3969 or [email protected]. ● Diesel signed a 10-year lease for 4,400 holds 117,343,000 shares. risotto with white chocolate and caviar, 22. The filing cites estimated assets of square feet at 625 Madison Ave. The and barrel-aged cocktails. $50,001 to $100,000 and estimated Seeks requests for proposals by 4 p.m. on high-end denim and fashion retailer is ● CR Bard Inc. (BCR) liabilities of $1,000,001 to $10 million. Feb. 19 for a consultant or consultant paying 83% more than the previous Timothy M. Ring, chairman, chief ● Objectify 139 The creditors with the largest unsecured team to provide ongoing on-call tenant and will have 1,400 feet of its executive and chairman of the executive 139 Essex St., Manhattan claims are ARS Investors, owed management and/or economic space below ground. The tenant was committee, exercised options on 20,000 The book boutique opened on the Lower $3 million; Internal Revenue Service, development consulting services for represented by Robert Gibson of JLL. shares of common stock at $83.47 per East Side. It offers affordably priced owed $136,818.57; and the State of NYCEDC, the Industrial Development The landlord, SL Green Realty Corp., share on Jan. 22, in a transaction worth collectible books and prints, as well as Connecticut, owed $25,683.26. Agency and/or city initiatives and was represented by Jeff Roseman of $1,669,460. On the same day, he sold one-of-a-kind artists’ original gifts such studies. The RFP is available for in- Newmark Grubb Knight Frank. 20,000 shares of common stock at as Statue of Liberty candles, mink cozies ● Lenape Lake Inc. person pickup between 9:30 a.m. and $177.84 per share, in a transaction worth and Leonardo DiCaprio T’s. 1621 E. 31st St., Brooklyn 4:30 p.m., Monday through Friday, from ● Poulette signed a 10-year lease for 650 $3,556,780. He now directly holds Filed for Chapter 11 bankruptcy NYCEDC, 110 William St., fourth square feet at 426 Amsterdam Ave. The 125,448 shares. ● Reed Krakoff protection on Jan. 16. The filing cites floor, Manhattan. To make inquiries, French-inspired rotisserie chicken 93 Greene St., Manhattan estimated assets of $100,001 to contact Maryann Catalano at (212) 312- eatery is opening its second Manhattan ● JPMorgan Chase & Co. (JPM) The women’s clothing boutique opened $500,000 and estimated liabilities of 3969 or [email protected]. location on the ground floor of a five- Stephen M. Cutler, general counsel and in SoHo. It offers ready-to-wear items, $100,001 to $500,000. A creditor with story residential building. The tenant member of the operating committee, shoes and accessories in an artistic an unsecured claim is Bevan Forestry ● Housing Authority was represented by Ravi Idnani of sold 23,027 shares of common stock at environment with light fixtures Inc., owed $2,000. Seeks competitive sealed bids by 10 a.m. Eastern Consolidated. The landlord, $55.37 per share on Jan. 15, in a appearing to break through walls and a on Feb. 19 for Supply Management Amsterdam Partners, was represented transaction worth $1,274,961. He now felt installation of clouds. ● SSL DV Inc. Department contracts for aboveground by James Famularo of Eastern directly holds 225,484 shares. Ⅲ 320 W. 46th St., Manhattan fuel oil tanks in developments in all five Filed for Chapter 7 bankruptcy on Jan. boroughs. Documents can be obtained COMPANY MOVES 22. The filing cites estimated assets of $0 at nyc.gov/nychabusiness. To make to $50,000 and estimated liabilities of inquiries, contact Erneste Pierre-Louis DEALS ROUNDUP Companies that would like to have details $100,001 to $500,000. The creditors at (212) 306-3609 or erneste.pierre- of recent moves published should submit with the largest unsecured claims are [email protected]. TRANSACTION SIZE descriptions following this format to Scythek, owed $94,685.50; Andrew Ko, TARGET/SELLERS (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE [email protected], with owed $15,745; and Real World Regency Energy Partners/ $18,000.0 Energy Transfer Partners SB M&A “Company Moves” in the subject line. Holdings, owed $4,649. REAL ESTATE DEALS Cushing MLP Asset Management, Energy Transfer ● Anne et Valentin Companies that would like to have details of Equity, ETE Common Holdings, 200 Smith St., Brooklyn GOVERNMENT CONTRACT their recent transactions appear in these Fiduciary Asset Management, OPPORTUNITIES GE Energy Financial Services, The eyewear store opened in Carroll listings should email descriptions following Jennison Associates (Manhattan), Gardens. Its second New York City this format to [email protected], KA Fund Advisors, Kayne store offers prescription and Following are selected contract with “Real estate transaction” in the subject Anderson Capital Advisors, nonprescription lenses for glasses and opportunities recently announced by New line, or enter them online at Neuberger Berman (Manhattan), sunglasses with bold frames in fun York City agencies.To learn how to sell crainsnewyork.com/submitadeal. Deals are OFI SteelPath Inc., shapes. goods and services to city government, visit listed in order of square footage. Prudential Investments, www.nyc.gov/selltonyc. For a searchable Riverstone Holdings (Manhattan), Swank Capital, ● Club Clio database of current procurement notices, COMMERCIAL ● Teachers’ Retirement 11 W. 14th St. visit www.nyc.gov/cityrecord. Listings are Swarovski signed an 11-year lease for System of Oklahoma, The Korean beauty shop opened in alphabetical by category and department. 17,900 square feet at 10 E. 53rd St. The Tortoise Capital Advisors, Greenwich Village. The store, which has Austrian crystal maker will occupy the Triangle Peak Partners two other locations in Flushing, offers a CONSTRUCTION SERVICES entire 26th and 27th floors of the 37- MeadWestvaco Corp./ $11,355.0 Rock-Tenn Co. SB M&A full cosmetics lineup, including ● Department of Design and Construction story tower. The tenant was represented Starboard Value “Lipnicure” lip stains, “Salon” mascaras Seeks competitive sealed bids by 11 a.m. by Mark Mandell of Cushman & (Manhattan) and easy-draw “Kill Black” eyeliner. on Feb. 24 for the construction of Wakefield.The landlord, SL Greene Jurys Inn Group Ltd./ $1,024.6 Lone Star Funds FB M&A combined sewers and appurtenances at Realty Corp., was represented by JLL‘s Westmont Hospitality Group, ● The Fhitting Room York Avenue between East 61st and Benjamin Bass, Alexander Chudnoff, Ulster Bank Ireland Ltd. 31 W. 19th St., Manhattan East 63rd streets in Manhattan. Bid Frank Doyle, Paul Glickman, Mitti Avestus Capital Partners The gym opened in the Flatiron district. documents are available at Liebersohn and Cynthia Wasserberger. Oman Investment Fund, Mount Kellett Capital Its second New York City location offers nyc.gov/buildnyc for a $35 deposit by The asking rent was not disclosed. Management (Manhattan) its signature high-intensity interval company check or money order. To training workout and has two make inquiries, contact Emmanuel ● Marketfield Asset Management Park Central San Francisco/ $350.0 LaSalle Hotel Properties SB M&A Westbrook Partners classrooms, monkey bars, battle ropes, Charles at (718) 391-2200 or signed a lease for 14,000 square feet at (Manhattan) digital lockers, and hair and makeup [email protected]. 60 E. 42nd St. The investment advisory stations. firm is relocating its headquarters from 73-property Pendragon $349.7 W.P. Carey Inc. (Manhattan) SB M&A ● Housing Authority auto-dealership portfolio/ 292 Madison Ave. to the new address’ not disclosed Seeks competitive sealed bids by 11 a.m. office building, known as 1 Grand BANKRUPTCIES Valad Europe/ $165.0 Cromwell Property Group SB M&A on Feb. 19 for façade restoration and Central Place. The firm signed a 10- Blackstone Real Estate roofing replacement at Queensbridge year lease for the 36th floor and a five- Advisors (Manhattan) The following listings are selected from the South housing development. Bid year lease for the 22nd floor. The tenant Broad Street Mall/ $112.9 Catalyst Capital SB M&A most recent available filings by companies documents are available Monday through was represented by Robert Frischman Davidson Kempner Capital seeking bankruptcy protection in the Friday, 9 a.m. to 4 p.m., for a $25 fee in of EVO Real Estate Group. The Management (Manhattan), Southern and Eastern Districts of New the form of a money order or certified landlord, Empire State Realty Trust, Englander Group York. Information was obtained from U.S. check payable to NYCHA. Documents was represented in-house by Ryan O. Selected deals announced for the week ended Jan. 29 involving companies in metro New York. Bankruptcy Court records available on can be picked up at 90 Church St., Kass and Fred C. Posniak as well as SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing shares Public Access to Court Electronic Records. Manhattan.To make inquiries, contact Newmark Grubb Knight Frank’s Julie of a company without the participation of a financial buyer. FB M&A: Financial buyer M&A Listings are in alphabetical order. Vaughn Banks at (212) 306-6727 or Christiano, William Cohen and represents a minority or majority acquisition of existing shares of a company with the participa- [email protected]. Jonathan Tootell. The asking rent was tion of a financial buyer. source: capitaliq

18 | Crain’s New York Business | February 9, 2015 20150209-NEWS--0019-NAT-CCI-CN_-- 2/6/2015 7:44 PM Page 1

If you can’t beat ’em, invest in ’em

the corner.’ ” ects or to tell a ‘story’to Wall Street,” Old media tries to The deal with Mashable follows NY MEDIA CORPORATE VCS wrote founder turned VC Micah conquer new media a recent pattern for Time Warner in Advance Publications Rosenbloom in a blog post titled investing in companies—such as Advance’s unnamed venture operation launched in 2010 “Strategic Investors—You will have by pouring money Brooklyn-based young-women’s with $500 million and a mission to find digital upstarts. sold your company. You just won’t lifestyle site Bustle,or YouTube net- Most recently it took part in a $117 million round in know it.” into digital upstarts work Maker Studios—that can help content discovery engine Taboola. “When winds shift, the strate- it do better with the millennial au- gics aren’t always around to help,”he dience. Opportunities to work to- Bertelsmann Digital Media Investments wrote. BY MATTHEW FLAMM gether could include a program- A subsidiary of German media giant Bertelsmann, it Mr. Rosenbloom, who led three ming partnership between makes early-stage investments in digital media and offers companies that took on strategic It’s been less than a year since Time Mashable and HLN, which Time access to a worldwide network of companies, including money,has had more luck in his role Warner ended its long marriage with Warner began rebranding last year Penguin Random House. Most recently it took part in a running the New York City office of Time Inc., spinning off the aging with the aim of attracting younger $16 million round in affiliate marketing tool Skimlinks. seed-stage venture-capital fund magazine publisher into its own viewers. Founder Collective.In 2013,Condé company. But already the gray- Or Mashable’s technology for Condé Nast Nast invested in one of its portfolio haired media giant is dating someone predicting viral content could be ap- companies, e-commerce startup A division of Advance Publications, the publisher sometimes younger and hotter: Mashable, the plied to Time Warner websites, in- Project Décor, and contributed an makes its own investments and is embracing e-commerce. website known for its large audience cluding CNN’s, Ms. Lam said. even more important asset: the of millennials and in which Time It took part in a $5 million round in Domino Media Group. Domino magazine brand, which the Warner Investments made a $17 Deals on the rise Its portfolio includes Farfetch and Rent the Runway. publisher originally shuttered in million commitment two weeks ago. Strategic investments by venture 2009. Time Warner is not the only arms of large corporations can be Hearst Ventures Relaunched in 2013 as a quarter- legacy media company engaged in a complicated affairs. There’s the Founded in 1995, the Hearst Corp. division has an ly print magazine and an May-December romance. On the danger that the startup and investor impressive track record dating back to Netscape. Its e-commerce site, Domino is run in- same day as Mashable’s announce- come from different cultures and portfolio includes BuzzFeed, streaming software platform dependently of Condé Nast, which ment, German publisher Axel have different needs. Startups could Roku and elite networking platform Relationship Science. has a minority stake and provides Springer unveiled a $25 million in- want to experiment with approach- marketing and distribution services. vestment in Business Time Warner Investments In addition to reviving the property, Insider. Founded in 2003, its portfolio includes Mashable and the new venture is helping the pub- These investments targeted TV advertising company Simulmedia. It led a $36 lisher figure out a longstanding are not only rooted in million round in YouTube network Maker Studios, which puzzle:how to combine content and the expectation—like Disney bought two years later for $500 million. Nice! e-commerce. that of any venture Source: Crunchbase, company websites Project Décor co-founder Cliff capitalist—of a big Sirlin, now CEO of the Domino payout. Established Media Group, says that revenue ap- companies also recog- nerships are on the rise: Deals in- Mashable for the “next wave”of dig- proached $8 million in 2014 from nize that there are far volving corporate venture capital in ital media,which he believes will re- both the magazine and e-com- better ways to mod- the U.S. rose 25% in 2014 over the volve around video, as television merce, and he’s forecasting 300% ernize their business prior year,to 656,with total funding moves online. growth in e-commerce sales this than to merge with spiking 76%, to $12.3 billion, ac- What he likes about the deal is year. AOL or buy My- cording to venture-capital database similar to what any entrepreneur Condé Nast was pleased enough Space. CB Insights.In New York,the num- likes about working with an experi- with the results to employ some el- “There’s an honest ber of corporate VC deals jumped enced VC: He’ll have Ms. Lam sit- ements of the model with its spinoff realization among 28%, to 74. ting on his board. in August of shopping magazine most traditional me- Some of that investment could Lucky. dia companies that have been made on a purely finan- Domino rebirth “It gave us the chance to restart digital-native busi- cial basis, as Google Ventures says “We saw a huge opportunity, the business with a born-digital nesses are best built outside [the es that the investor might not have that it does. And at least at first, which was to get on our board some- team,”said President Robert Sauer- older company],” said Rachel Lam, bargained on. A media conglomer- startups may take a narrower view of one with a deep understanding of berg of the Domino venture.“They who has led Time Warner Invest- ate, meanwhile, can be a potential a strategic round than their in- media, and we took advantage of do what they’re good at, and we do ments as managing director since it competitor of a startup, in which vestors. that,” Mr. Cashmore said. what we’re good at, and we both was created by then-Chief Execu- case the venture arm has to be sen- For Pete Cashmore, founder and Despite the benefits of taking on participate in the equity value cre- tive Dick Parsons in 2003. “He felt sitive to the way it moves between CEO of Mashable, working with strategic money,entrepreneurs warn ation.” Ⅲ the industry was going to shift, and the portfolio company and its own HLN would be icing on the cake. of perils for the inexperienced. he wanted a small team whose full- sister properties. He’s more concerned with using the “Some strategic investments are LISTEN to a discussion at CrainsNewYork.com/podcasts time job would be to ‘peer around Whatever the risks, these part- $17 million investment to prepare used to justify corporate side proj-

in the city, Start-Up NY will need and Mr. Rand’s Navy Yard deal. “It peau Ventures,“he should really give Start-Up NY stalling to become better known in Silicon sounds pretty amazing,but I’ve nev- me a call.” Alley. er even heard of it.” Mr. Greene, whose firm has been Medgar Evers,for example,is in Start-Up NY’s low profile involved in such Silicon Alley icons as Continued from Page 3 applying. “You need to be a Jersey- the final stages of acquiring space among tech startups in the five bor- Warby Parker, Birchbox, MakerBot in Brooklyn.) They must commit to based version of MakerBot or some- at the Brooklyn Navy Yard that it oughs should be maddening to the and BuzzFeed,had heard of Start-Up adding a predetermined number of thing.” would give to a startup in exchange Cuomo administration, which NY but not Mr. Rand’s Navy Yard jobs and invest a certain amount of for student job training and other spent $28 million in the first half of space until contacted for this article. capital in the tax-free zone where Colleges on board partnership opportunities.The ac- 2014 alone to promote the program Told that Mr. Greene expressed in- they operate. This year nonetheless offers the quisition is pending state approval. through a national TV,print and ra- terest, the senior state official re- City-based tech firms tend to Cuomo administration a second “I’m about to have 9,000 square dio campaign. Mr. Rand said his at- sponded, “Tell that VC to call us.” add jobs in unpredictable bursts.But chance to prove Start-Up NY can feet of tax-free space in one of the tempts to contact venture capitalists Mr. Rand, despite his eagerness here’s the real Alley killer: Appli- work in the five boroughs. Four most desirable areas in the city,”said and sell them on his Navy Yard space to get going, plans to wait for the cants must not headhunt from near- schools in the City University sys- Benjamin Rand, the college’s direc- have not been fruitful and added right business. by companies or even compete with tem—Bronx Community College, tor of strategic planning and part- that the lack of knowledge about “Start-Up NY is a great program, them. That is exactly what Silicon City College of New York, College nership development. “I would ex- Start-Up NY has played a role. But and the state’s been incredibly help- Alley startups typically do—steal of Staten Island and York College in pect venture capitalists to come like Mr. Klein, some previously un- ful in helping us get included,” he talent from other startups and strive Queens—recently gained Albany’s knocking at my door.” aware VCs appear tantalized by said. “But now I need a private- to disrupt older business models. approval on locations to host But many potential partners what Mr. Rand is offering. sector partner. This is prime space “Most startups look at the pro- private-sector partners,and Medgar know nothing of the program. with a great deal attached to it;I don’t gram and assume they won’t be ac- Evers College in Brooklyn will soon “Is that a real thing?” asked Prime space want to give it to just anyone.” Ⅲ cepted,” said one Brooklyn-based participate, giving city startups a David Klein, founder of online “If he’s got 9,000 tax-free square tech entrepreneur who had looked handful of options. student-loan platform Common- feet in the Navy Yard,” said Taylor LISTEN to a discussion at into Start-Up NY but ended up not But for the program to take hold Bond, when told of Start-Up NY Greene, a principal at Lerer Hip- CrainsNewYork.com/podcasts

February 9, 2015 | Crain’s New York Business | 19 20150209-NEWS--0020-NAT-CCI-CN_-- 2/6/2015 7:44 PM Page 1

the Cornell University School of mi Beach market, where 40% of the tary tipping when a recession hit in Restaurant wages Hotel Administration. restaurants add a service fee to the 1995 as business slowed and the ex- Many diners like to reward good bill because a large number of their tra tips dried up. service with a generous tip but also clientele are international visitors Others point to the growing Continued from Page 3 Haber’s plan would be to add a sep- want the option to penalize a server who tend to be poor tippers. number of wage-and-hour lawsuits prix fixe eatery in the Time Warner arate charge and raise menu prices who gives them poor service. Wait- Mr. Lynn found that the service involving tipping that would likely Center. Others are now considering minimally. ers also like the current system and ratings in the Zagat restaurant guide go away with a move to service the practice. But neither restaurateur wants to the challenge of earning a payout for those eateries were slightly low- charges. act alone. with a generous tipper. er than comparable restaurants in Exploring change “If a Jimmy Haber,Danny Mey- Servers at upscale eateries can the area that did not charge for gra- At a crossroads “We are seriously exploring col- er or Daniel Boulud did it,” it earn between $50,000 and $100,000 tuities. Riki Hashizume, owner of lecting a service charge from our would be easier to take the plunge, annually, industry experts say. In 2005, when Mr. Keller added Japanese eatery Riki on East 41st customers and paying our employ- said Mr. Colicchio, founder of “Being a waiter is like being a a service charge to the menu at Per Street, said he instituted a no- ees a weekly, merit-based salary,” Crafted Hospitality, which oper- Se, he said that he would use some tipping policy two years ago after he said Jimmy Haber, managing part- ates four upscale restaurants in the of the money to increase the pay of was slapped with a lawsuit. ner of ESquared Hospitality, which city and a chain of sandwich shops ‘10 years from his cooks and kitchen staff while At a conference last week on tip- owns the BLT restaurant empire. called ’wichcraft. also providing a steady wage for ping—hosted by the New York City He estimates ESquared’s labor costs He added that “changing peo- now, no one servers regardless of whether Per Se Hospitality Alliance—many of the would increase by $1 million to $1.4 ples’ habits” would be the biggest was busy. The restaurant’s spokes- restaurant owners said they are at a million a year if the current tip cred- obstacle but not an insurmountable will know what woman declined to comment on crossroads, knowing that they need it goes up to $7.50 or $8.50. Em- one. “I suspect that 10 years from how the system is working out. to take some action soon. ployers now can pay tipped workers now,no one will know what a tip is,” a tip is’ Michael McCarty, who owns Most agree that they will have to $5 an hour as long as their tips make Mr. Colicchio predicted, pointing Michael’s restaurant on West 55th raise their menu prices and reduce up the difference to equal the state’s to such popular businesses as Uber, Street, said he had a service charge their tipped workers’ hours, while minimum wage of $8.75. which automatically includes a 20% at the eatery,as well as five others he acknowledging that service could be The Wage Board is recommend- gratuity in its pricing. owned outside New York, for 16 affected. ing that the legislature enact a Even so,right now,tipping is in- years. “Waiters’ hours were never on separate city tip credit of $8.50, $1 grained in the American culture. gambling addict waiting for the big “It allowed me to pay my kitchen the cutting floor before, but once higher than the proposed state min- New Yorkers are among the most score,” said Steve Dublanica, a for- staff between $5 and $10 more an they become more expensive,” said imum. generous tippers worldwide, pay- mer server and the author of Waiter hour,” he said, explaining that his Eric Bromberg, co-owner of Blue Mr. Colicchio said a hike in his ing an average of 18% of their Rant. servers made up the difference in Ribbon Restaurants, “you put more menu prices would enable him to restaurant bill (Californians pay an There is also evidence that auto- their lower wages because diners focus on that line item.” Ⅲ cover the full cost of his labor—in- average of 17%), according to matic gratuities can negatively af- typically left an extra 3% to 5% on stead of relying on diners’ generosi- Michael Lynn, a professor of con- fect service at restaurants,according top of the service charge. LISTEN to a discussion at ty to supplement their pay. Mr. sumer behavior and marketing at to Mr. Lynn, who studied the Mia- He was forced to return to volun- CrainsNewYork.com/podcasts Sunnyside Yards

Continued from Page 1 Plaza and Queensboro Plaza.In that ing if not messy. The puzzle-piece coveted area, the northern edge of layout of property lines within the the yards is owned by the MTA and yard could make it difficult to deck runs up against parts of Long Island over the tracks without consensus City and Astoria, while Amtrak’s far between the Metropolitan Trans- larger stake sits to the south of the portation Authority and Amtrak,the yard, abutting a strip of industrial owners of the choicest pieces of land, buildings and neighborhoods in- according to city records. Mean- cluding Sunnyside. Go farther east, while,the city owns the air rights over and the ownership structure be- two-thirds of the MTA’s 66 acres,but comes even more convoluted. At it’s unclear exactly where. least one private company, General Motors, controls a piece of the yard. On the rocks “[The company] uses it to sup- And then there are the topo- port various dealership activities in BLANK SLATE: The huge graphical and geological challenges. the area,” said a GM spokeswoman Sunnyside Yards have drawn Estimates vary, but a deck could in a statement. She went on to note: a host of powerful players with game-changing plans. span about 8 million square feet.Be- “We have not been contacted by any neath it, warned Mr. Moss, the entity regarding other proposals for bedrock is “soft.” The MTA, which the property.” is using the site as a staging ground Ironically, the vaguely whale-

for the LIRR’s East Side Access,has shaped Sunnyside Yard became a bit buck ennis run into numerous problems be- of a Moby-Dick for previous ad- cause of the bedrock,which,accord- ministrations. As part of the city’s Mr. de Blasio has given no indi- ter of timing.In his State of the City No wonder the mayor’s office ac- ing to the agency, is a “a mixture of bid to host the 2012 Summer cation he would support a conven- speech last week, the mayor talked knowledges that any housing built sand, clay and boulders [where] the Olympics, officials proposed build- tion center at the site. Mr. Cuomo, of putting 11,250 below-market at Sunnyside Yards will likely be- water table is high.” ing a major sports arena on the site. who endorsed a convention center apartments at Sunnyside Yards, the come available after the conclusion What’s more, the topography Later, the Bloomberg administra- in his own State of the State speech same number built in 1947 at of Mr. de Blasio’s affordable-hous- would make putting up a platform tion talked about the possibility of three years ago, said in a recent in- Stuyvesant Town and Peter Cooper ing plan. Nonetheless, it now looks difficult, given that the site’s north situating a supersize convention terview with NY1 that the idea still Village in Manhattan. But experts likely that at some point, with the and south edges are of varying eleva- center there, financed by the sale of had merit. doubt that Mr.de Blasio will even be city’s blessing—if not cash—hous- tions. That means the platform the outmoded Jacob K. Javits Cen- around to count those units toward ing will blossom on the site. It’s a would have to rise or fall in order to ter on the West Side of Manhattan. Frightening prospect his ultimate goal of building or pre- possibility rich in irony. mesh seamlessly with the neighbor- In November,Mr.Doctoroff,now That’s nice, but area residents serving 200,000 affordable apart- Prior to the yard’s construction hoods to the north and south, in the CEO of Bloomberg LP, revived disagree. Councilman Jimmy Van ments during the next decade. 105 years ago, the site was marsh- some cases.City officials have prom- that notion in an op-ed for The New Bramer,whose district encompasses Decking over the rail yard, even a land, crisscrossed by streams feeding ised such details in a feasibility study, York Times.Only this time,the idea of the entirety of the rail yard, has small portion of it, is expected to be into Newtown Creek.But the LIRR but even that is at least a year away. what could become of Sunnyside vowed to block any proposal for a a multidecade project—one with fi- saw potential and bought up much of Assuming the work is done in Yards came with a price tag.In his op- convention center or high-rise nancially unfortunate timing. the property.Back then,according to phases, as developer the Related ed, he cited a study he commissioned housing in the portion of the yard “It’s a 30-year project where 1975’s The Long Island Rail Road: A Cos. is now doing over the 28-acre from HR&A Advisors and SHoP adjacent to landmarked neighbor- probably 50% of the costs will be in- Comprehensive History by Vincent Hudson Yards west of Penn Station, Architects.They put the total cost of hood Sunnyside Gardens. curred in the first five years,” said Seyfried, hundreds of homeowners the most logical place to build hous- a 3.1 million-square-foot convention “There have been lots of propos- Seth Pinsky, a former CEO of the received eviction notices.They bare- ing would be a stretch within walk- center—plus 14,000 units of housing als on developing the yard over the city’s Economic Development ly had time to move out before “scav- ing distance of three major subway (50% of which would be affordable), years,” he said. “And every time it Corp., now an executive vice presi- engers under the cover of darkness” junctions: Court Square, Queens 2 million square feet of office and re- comes up,folks in the neighborhood dent at developer RXR Realty. “It’s demolished whole houses for their tail space, several hotels and infra- get frightened about the prospect of decking, it’s sewers, it’s electricity. wood and plumbing. LISTEN to a discussion at CrainsNewYork.com/podcasts structure upgrades—at an eye- massive development.” There’s nothing there. You’re build- A century later, housing at Sun- popping $8 billion. And then there’s the small mat- ing from scratch.” nyside Yards may grow anew. Ⅲ

20 | Crain’s New York Business | February 9, 2015 20150209-NEWS--0021-NAT-CCI-CN_-- 2/5/2015 6:29 PM Page 1

HELLUVA TOWN INSIDE Source Lunch Conventional wisdom PAGE 22 Out and About Floods of suds at New matthew murphy Grey matter York Beer Week PAGE 23

Legions of fans are hotly anticipating the Valentine’s Day big-screen debut of Fifty Shades THREE CHEERS: of Grey. Perhaps none are as excited David Hitchner, as Andrew Asnes, a producer of shown here at 50 Shades! The Musical Parody Alphabet City Wine (pictured), a year-old off-Broadway Co., has founded a mini-business show based on the kinky best-seller. empire. “This is so great for us,” said Mr. Asnes, who admitted he never finished the book. He plans to capitalize on the hoopla by selling packages including both the movie and the show.Tickets for the show alone cost between $49 and $79. With weekend performances selling out, the musical will be extended from its original April 4 closing date through early September at the Elektra Theatre, at 300 W. 43rd St. Still, winter weekdays are a tougher sell, so the movie’s timing is a gift. For added zest, the show has uploaded naughty Valentine’s Day e-cards online, and a parody of the movie’s Super Bowl commercial is coming up.The biggest stunt is set for Feb. 13, when 50 participants clad in gray or sporting body paint will prance around Times Square. “I’m worried about the logistics because the weather has been so bad,” Mr. Asnes said, adding that the musical will get an update after the film comes out to reflect the movie version. —theresa agovino Olive branch Local may be the rage these days, but California-based We Olive is finding love in Brooklyn. The shop, which pairs wine with small plates featuring the Golden State- made artisan olive oil it sells, landed in Boerum Hill in December. It is already scouting for additional outposts. We Olive franchises gross as much as $1.1 million annually. ABCs of drinking There are 14 stores in the U.S., mostly in California. The Brooklyn shop is owned by Angelo and Patricia Incorvaia, David Hitchner owns two trendy joints on Avenue C. who have the exclusive rights in New York for three years. The couple is looking at Dumbo and Now he’s planning to open a third the St. George area of Staten Island—by the Ferris-wheel development—for their next buck ennis locations. “We are hoping to be open in Staten Island at the end of BY THORNTON MCENERY BOTTOMS UP this year,” said Mr. Incorvaia. We Olive co-founder Frank avid Hitchner is drinking at work again. ¶ Seven bottles of wine crowd the Mercurio is also an expert in molecular research: He is the chief small table in front of him as he hunches forward in a worn leather scientific officer at another armchair on a cold, gray Friday afternoon. After quaffing a Greek white, 12 company he founded, BioTheryX, NUMBER of tap lines, which has offices in San Diego which he pronounces “finish-y,” Mr. Hitchner scratches some notes on a rotated daily, at ABC Beer and Chappaqua, N.Y. piece of paper balanced on his hip, pours the remnants of his glass into a He and his wife, Ruth, founded bucket, and then holds it up in the air to be filled with an Italian red. ¶ We Olive in 2003, and added wine bars, featuring California vintages, “This would pair well with fried fish and beer, like an IPA,” he says with a in some locations in 2009. smile.“There’s one next door that would be perfect.” ¶ While this might <$20 —lisa fickenscher AVERAGE PRICE of wine sound like a daytime bacchanal, it is just another day at the office for the 32-year-old Mr. Hitchner, at Alphabet City Wine Co. who in the past eight years has been building a reputation as the most modish purveyor of booze in DAlphabet City. As owner of the Alphabet City Wine Co. and ABC Beer Co., Mr. Hitchner has laid the foundations of a mini-business empire on one block of Avenue C between East Sixth and Seventh streets.The wine store, opened in 2007, has become a neighborhood staple, and the beer- store-cum-bar, opened in 2012, is now a bona fide hot spot, drawing crowds See BARS on Page 22

February 9, 2015 | Crain’s New York Business | 21 20150209-NEWS--0022-NAT-CCI-CN_-- 2/6/2015 12:48 PM Page 1

SOURCE Alphabet City bars LUNCH: Interview by Andrew J. Hawkins LAURA SANTUCCI nyc mayor's office mayor's nyc Continued from Page 21 long communal table and a few from all corners of town. leather loveseats are available for Now he’s tripling down on his Al- sitting, sipping and chilling. In phabet City booze domain with a warmer months, a small backyard third location, right smack in be- patio is open. Hoping to lure a convention tween the two. Lois, a 20-seat keg- Despite its location, ABC Beer wine bar slated to open at the end of Co.hums on nights and weekends.It February, will marry aspects of its has become a destination for beer neighbors on Mr. Hitchner’s slice of obsessives, one of those being actor to an unconventional borough Avenue C. In fact, if you have been Sam Rockwell, who has publicly east of Avenue B in the past five years touted his affinity for the place. The and bought an affordable bottle of or- whole block has become something hen Laura San- the 2004 Republican convention? putting your resources in the field ganic Malbec or a six-pack of porter of a scene, with popular eateries Edi tucci isn’t serv- Any host city has to contend with and winning your voters. handcrafted at a New England brew- & the Wolf and Bobwhite Lunch & ing as Mayor that, no question. There were pro- ery,chances are good that Mr.Hitch- Supper Counter sandwiching Mr. Bill de Blasio’s testers in Charlotte. It’s not a con- Which industries would see a boost? ner had something to do with it. Hitchner’s businesses on either side. chief of staff, cern. Another reason our bid is so The 2004 convention generated After graduating from Montre- she’s helping run the city’s bid to strong is we’ve shown the ability to about $250 million in economic ac- Looking for synergy W al’s McGill University in 2005 and host the 2016 Democratic Nation- manage peaceful demonstrations. tivity.It’s too early in the process to moving to the city, Mr. Hitchner, a “By necessity, the places that suc- al Convention. The California na- be specific,but ...industries will in- Maryland native, found work at In ceed around here are neighborhood tive is a natural fit: She was execu- How has the animosity clude local food and bever- Vino, an East Village wine bar and joints, and David’s places have that tive director of the 2012 convention between the police WHERE age retailers. A lot of those restaurant, while toying with the feel,” said Bobwhite’s owner, Keed- in Charlotte,N.C.,and was chief of unions and the mayor af- THEY are right there in Brooklyn. idea of going into finance. Within a ick Coulter. “I tip my hat to him. In staff for the Democratic National fected the city’s bid? Even Barclays as a venue,all year, he and a co-worker had put a way, we’re all riding his coattails.” Committee for two years. Nobody from the DINED their concessions are locally enough money together to buy out Although most patrons are aware To bring next year’s convention DNC has expressed BAR AMERICAIN owned restaurants. the owner. that Mr. Hitchner also owns the to Brooklyn, Ms. Santucci is going any concerns or ques- 152 W. 52nd St. Sensing a fast-shifting demo- wine place a few doors down, he ad- against the grain of the inequality- tions about that issue. (212) 265-9700 Hotels would benefit, I assume. graphic in the area, Mr. Hitchner mits that the crossover between focused de Blasio administration by They are focused on baramericain.com Hotels, no question.There’s and his partner hit on the idea of a businesses has not been as synergis- highlighting the city’s deep pock- who has the experi- AMBIENCE: a lot of production that goes wine store that would sell affordable tic as he had originally hoped. He ets. Past conventions have ended in ence and the capacity. Power lunchers mix into what happens in and seamlessly with bottles of quality cites the vacant the red. Ms. Santucci believes Whatever has tran- midtown tourists. A around Barclays. Those will vintages and top- storefront that sepa- wealthy New Yorkers will make a spired over the last huge bar’s massive be union jobs. And the ho- shelf spirits in a ‘Every rates his shops as a convention here a debt-free success. weeks doesn’t take mirror reflects soft tels will be huge. And it’s all space that—with potential issue, and away from the fact lighting from Art here. You’re not going to leather armchairs,a something he will What’s the argument for New York? that we have the Deco chandeliers. have to get on a bus and drive business Celebrity chef record player, a correct with the Financial resources. We already largest and most ex- Bobby Flay’s 45 minutes, as was the case youthful and en- on this block opening of Lois. have $6.5 million in the bank and perienced police cookbooks are on in Charlotte and Denver. gaged staff, and a Lois is actually $20 million [in pledges]. And we force. And that, by display. conspicuous lack of has flipped’ the brainchild of Al- said we didn’t need to wait to win the way,crime is at an WHAT THEY ATE: What about Airbnb? bulletproof glass— phabet City Wine’s this to begin raising money. We’re all-time record low. Ⅲ Heartland I’m not going to comment felt more like a liv- since 2007 manager, Nora O’- ready. We’re ready to host now. chopped salad, on Airbnb. I will say as part Are the Clintons in tap water ing room than a Malley, and ABC Ⅲ of our bid we are going to be What are the costs to the city in support of the city’s bid, Southwestern liquor store. Beer Co.’s manager, Cobb salad, iced pushing very competitive “It was a very Phoebe Connell— overtime and traffic control? as has been reported? tea rates with the hotels so it will different place both 27—who Approximately $10 million. I can’t speak to that. Ⅲ Wild mushroom be affordable for delegates. when we opened in 2007,” he said, brought Mr. Hitchner in at the idea and butternut looking out the big windows of Al- stage of the soon-to-open space. The host committee includes top city You don’t hang out with squash crepes How has your experience phabet City Wine Co. “Every busi- “Locals talked to us all the time about business leaders and executives. What Bill and Hillary? PRICE: working for the DNC given you ness on this block and across the wanting a place to grab a glass of wine are their expectations? I don’t hang out with $86.40, including an advantage? tip street has flipped since then, except or a nightcap,” said Ms. O’Malley. We hosted a breakfast at Gracie the Clintons. This is We are coming to this bid as for one shoe-repair place and the Al- “So the three of us finally said, ‘Why Mansion [at which Goldman for whoever the nominee is,regard- partners, and that is exactly what phabet Lounge on the corner. The don’t we do it?’ ” Sachs CEO] Lloyd Blankfein less if it’s Hillary.Unfortunately,we they’re looking for. I know that be- last check-cashing spot closed just According to Ms.O’Malley,their made remarks [that] to me cap- are in a day when to run a presiden- cause I sat in that building and last week.” boss has turned into an invaluable tured why these folks were coming tial campaign now costs $1 billion. worked on the last convention and business partner, bringing a mentor- to the table.They see this as a civic I’m not here to talk about understand what they need out of a Change agent ship aspect to his role of minority duty, as a chance to lift up our city, campaign-finance reform, but partnership. You want to deliver a Mr. Hitchner has been a big part owner of Lois (he has a 15% share). to highlight all of its great assets. what we do know is that campaigns well-funded convention to your of that change. Taking lessons “He’s so savvy about how and when They know and understand that are expensive and that the nominee nominee.That’s hugely important. learned from the wine store, he took to do things,” she said. “He can call they benefit so much from the re- shouldn’t even have to worry about his burgeoning interest in craft beer up people that we wouldn’t have even sources of New York City and see the convention. There was a debt Any concern that the mayor will steal and leased space two doors down to thought of.” this as an opportunity to give back. left over from Charlotte, and the the spotlight from the nominee? create ABC Beer Co., which opened The opening,planned for the end president’s campaign team had to Not at all. The nominee is the for business in 2012 after he pulled of February, is clearly providing Mr. How do you avoid the mass arrests of fix it. You need to be focused on nominee. Ⅲ off a trade with his former partner. Hitchner with a sense of excitement The swap gave Mr. Hitchner full that belies his small stake. control of the wine store while ced- “The whole tap thing is totally PLAY/LIST People, places and things that make Laura Santucci tick ing his involvement in In Vino. different from the beer store,”he said “It was time to make a change,”he with a zealous grin.“It’s still kegs but ALL-TIME BEST women. Sen. Ted FAVORITE CHEF: WELCOME TO NEW Barclays Center for reflected. “And I was really passion- with wine,the tap lines are lined with CONVENTION Kennedy, 2008. I Bobby Flay YORK: The California DNC business. ate about getting the beer place up glass, and the gas is nitrogen. It’s like SPEECHES: “Ann was backstage in native’s first trip to “Fresh ingredients and running.” a whole new language.” Richards, 1988. She Denver when he the state was to and a great arena The dimly lit, deceptively large Once the wine starts flowing, the was bold, humorous arrived. The weight of attend Manhattan- snack for a space is a beer geek’s paradise. Re- newest entry in Mr.Hitchner’s claim and plainspoken that moment was ville College, a small vegetarian!” frigerators lining the front are filled to the booze throne of Alphabet City about what the party palpable. The closing liberal-arts school with beer of every kind from all over will be a reality, something that his stands for. And an 28 miles north of the world,with a table of salty snacks friends and colleagues endorse line, when he talked inspiration for Manhattan. in the middle for good measure. Be- wholeheartedly. about passing the hind the sales floor is a bar with 12 “To see someone so young doing torch to a new beers on tap. what we want to do is a pretty cool generation as VEGGIE POWER: A Taps are changed almost daily thing,”said Ms.O’Malley.“It’s also a he invoked his vegetarian since

and curated with borderline obses- real kick in the butt to get going.” Ⅲ 1980 istockphoto 15, Ms. Santucci sive care by Mr. Hitchner and his convention EXERCISE BREAK: digs Calexico’s ABC Beer Co. partner, Zach LISTEN to a discussion at speech, is still She loves to jog in concession stand CrainsNewYork.com/podcasts Mack. Farther back in the space, a bloomberg news moving.” Central Park. when she visits

22 | Crain’s New York Business | February 9, 2015 20150209-NEWS--0023-NAT-CCI-CN_-- 2/6/2015 12:49 PM Page 1

OUT AND SNAPS Execs raise more than $1.3M to fight cancer ABOUT by Jessica Kramer

CULTURE FIX CAREER BUILDERS TUESDAY, FEBRUARY 17, WEDNESDAY, FEBRUARY 18 THROUGH FRIDAY, FEBRUARY 20 Harlem Park to Park presents Acclaimed independent filmmaker Jim Jarmusch the HARLEM HOSPITALITY & (left), together with his Sqürl bandmates CULINARY CONFERENCE 2015, (including Carter a one-day discussion about Logan, right), developing the hospitality and created original culinary industries in the scores for four of neighborhood. Speakers Man Ray’s avant- include Red Rooster owner garde short films Marcus Samuelsson and that will screen at Apollo Theater President and SILENT FILMS/LIVE CEO Jonelle Procope. The MUSIC clint spaulding, mcmullan patrick on Tuesday event will begin at 8 a.m. at MITCHELL ROSENTHAL, SHEILA NEVINS and and Thursday. On the Schomburg Center for RICHARD PLEPLER at Phoenix House’s Public cashin patrick alternating Research at 515 Lenox Ave. Service Award Dinner. The Jan. 29 event honored Ms. KEVIN CONROY, ELISA MONTE, GREER ST. JOHN and VAUGHN WILLIAMS at Elisa Monte evenings, Tickets are $50 and can be Nevins, president of HBO Documentary Films. Dance’s 34th anniversary gala. The Jan. 22 fete raised $484,407. Blancanieves, the purchased at hp2pconference Spanish-language 2015.eventbrite.com. adaptation of Snow sara driver sara White, will be FRIDAY, FEBRUARY 20 screened, accompanied by music from soundtrack The FIFTH ANNUAL NYU SOCIAL composer Alfonso Vilallonga and the Wordless INNOVATION SYMPOSIUM Music Orchestra. The free shows take place at 8 explores innovations for p.m. at Brookfield Place New York at 230 Vesey sustainable social impact. St. For more information, visit artsbrookfield.com. Speakers include Unilever North America President SUNDAY, FEBRUARY 22 Kees Kruythoff. The half-day Ring in the Year of the Goat/Sheep/Ram at the conference runs from noon to 16TH ANNUAL CHINATOWN LUNAR NEW YEAR PARADE 7 p.m. at NYU’s Kimmel & FESTIVAL. The jovial jaunt through lower Center for University Life at Manhattan features vibrant visuals, performances 60 Washington Square South. and food. The free festivities start at 1 p.m. at Sara Tickets are $50 to $80 and Roosevelt Park, at Canal and Forsyth streets. For can be purchased at more information, visit betterchinatown.com. nyusis.com. ben rosser, angela pham/bfanyc.com

bfa DIANA TAYLOR and MICHAEL BLOOMBERG at the DON’T MISS ALE AND HEARTY MICHAEL RIGHTMAN, CAROL KIMMEL, SUSAN HORT and MICHAEL HORT at the 2015 Winter Antiques Show’s Opening Night Party. Rema Hort Mann Foundation’s 20th Anniversary Gala and Art Auction. The Jan. 21 benefit The Jan. 22 event raised funds for the East Side FRIDAY, FEBRUARY 20, THROUGH SUNDAY, MARCH 1 generated more than $1.3 million for the cancer organization. House Settlement. Hop to it at the New York City Brewers Guild’s SEVENTH ANNUAL NEW YORK CITY BEER WEEK. The citywide event features 20 of New York City’s best craft breweries, along with dozens of rare national and international brands, at See more of this week’s Snaps online at CrainsNewYork.com/galleries. hundreds of bars and restaurants with tastings, menu pairings and beer dinners. Times, locations and prices vary. For more information, visit

nycbrewersguild.com. d’ippolito dan

OPENING FUNDRAISERS FRIDAY, FEBRUARY 20, THURSDAY, FEBRUARY 19 THROUGH SUNDAY, MAY 24 One Hundred Black Men Inc. hosts its Race, gender and the politics of 35TH ANNUAL BENEFIT GALA. The event representation are explored through the honorees include Torrence Boone, contemporary African-American men Google’s global head of agency sales and and women depicted within the service, and Carla A. Harris, Morgan conventions of traditional European Stanley’s vice chairman of wealth portraiture in KEHINDE WILEY: A NEW management. The event begins at 6:30 REPUBLIC. Some 60 paintings and p.m. with cocktails, followed by dinner sculptures from at 7:30 p.m., at the New York Hilton at the artist’s 14- 1335 Sixth Ave. Tickets are $1,250 and year career will be can be purchased at ohbm.org. on view at the Brooklyn SUNDAY, FEBRUARY 22 Museum at 200 Prize-winning novelist Salman Rushdie Eastern Parkway. is joined by folk/pop artist Wesley Stace The museum is and violinist Joshua Bell for AN EVENING open from 11 OF MUSIC & LITERATURE WITH JOSHUA Content is still king. a.m. to 6 p.m. BELL & SALMAN RUSHDIE. The evening Wednesday, benefits Still Waters in a Storm, a music

jason wyche jason For nearly 30 years, Crain’s New York Business has been creating Friday, Saturday and literacy program for at-risk children and Sunday (11 a.m. to 10 p.m. in Brooklyn. The show takes place at 8 award-winning content. Let us create yours. Thursday). There is a $16 suggested p.m. at City Winery at 155 Varick St. admission for adults. For more Tickets are $55 to $125 and can be We work closely with clients to find the right mix of content solutions that fit their unique information, visit brooklynmuseum.org. purchased at citywinery.com. business and promotional needs and then work hand-in-hand to execute the initiatives.

Examples include: ½ annual reports ½ thought leadership ½ events MARK YOUR CALENDAR… ½ curated roundtables ½ sponsored blogs ½ and more ½ advertorials ½ microsites THURSDAY, APRIL 23 MARY TIMONY (center), recently of Wild Flag, leads EX HEX, a garage-pop trio that plays well-crafted and catchy punk rock. See these lovely ladies in an intimate For more information, please contact Trish Henry space for an arresting live show. The concert takes takagi jonah at (212) 210-0711 or [email protected]. place at 8 p.m. at (le) poisson rouge at 158 Bleecker St. Tickets are $13 and can be purchased at lepoissonrouge.com.

February 9, 2015 | Crain’s New York Business | 23 Eddie & Sean O’Keefe Owners, Chateau Grand Traverse Winery Chase Business Client

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Chase received the highest numerical score in the northeast region in the proprietary J.D. Power 2014 Small Business Banking Satisfaction StudySM6WXG\EDVHGRQWRWDOUHVSRQVHVPHDVXULQJȴQDQFLDOLQVWLWXWLRQVLQWKHQRUWKHDVW region (CT, ME, MA, NH, NJ, NY, PA, RI, VT) and measures opinions of small business customers with annual revenues from $100,000 to $10 million. Proprietary study results are based on experiences and perceptions of customers surveyed in July–September 2014. Your experiences may vary. Visit jdpower.com. © 2015 JPMorgan Chase Bank, N.A. Member FDIC Equal Opportunity Lender. Credit approval required.