Crain's New York Business

CRAINSNEW YORK BUSINESS

City Hall shamed into paying interns P. 2 | Changes brewing for beer-makers P. 7 | Sel es spell sales for jewelry designer P. 8

NEW YORK BUSINESS® MARCH 26 - APRIL 1, 2018 | PRICE $3.00

There’s no stopping this year’s class of rising stars, including Emmy- nominated writer Amber Ruf n PAGE 12

VOL. XXXIV, NO. 13 WWW.CRAINSNEWYORK.COM

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ON THE COVER

PHOTO: BUCK ENNIS

FROM THE NEWSROOM | WILL BREDDERMAN | REPORTER Action news

CRAIN’S HAD a hand in city policy making last week, thanks to a tip from a perceptive reader. It all started earlier this month, when the de Blasio administration launched an advertising campaign urging local business owners to pay their interns. at prompted a reader to alert Crain’s columnist Greg David that City Hall doesn’t pay the interns who come to work in its o ces each summer. Experts contend that unpaid internships discriminate against low-income students, who need to earn money to support themselves and their education. e practice also compounds the advantages enjoyed by more a uent students such as Mayor Bill de Blasio’s children, Chiara and Dante, who interned under their dad during his rst summer in City Hall. David passed the tip along to assistant managing editor Erik Engquist, who then raised the apparent contradiction of words and P. deeds in an email to the mayor’s o ce. A er some initial hemming 12 and hawing, a spokeswoman announced the administration would begin compensating its interns in the near future. IN THIS ISSUE Engquist then asked me to contact the City Council—no less UP FRONT 33 SNAPS proud of its progressive credentials than the mayor—to see whether Photos from the city’s biggest fundraisers and it pays the young people who join its sta for a few months each year. EDITORIAL 3 charity events e press o ce said the council has both paid and unpaid intern- Cuomo should keep his eyes ships, but it didn’t provide an immediate answer about how many on congestion pricing 34 FOR THE RECORD Our tally of the week’s buys, IN CASE YOU MISSED IT of each type it o ers. Meanwhile, a Google search turned up ads for 4 busts and breakthroughs unpaid internships on several council members’ pages. Spending bill’s “stealth” Gateway funding 35 PHOTO FINISH e day our story broke, and spread across local media, I asked A Brooklyn company POLITICS Speaker Corey Johnson about the internship issue shortly before the 5 builds mini mushroom Jerome Avenue rezoning is farms in restaurants council voted to increase its budget by $17 million. He and his sta the latest win for the mayor’s and markets could o er only the excuse of “deference to individual members” and affordable-housing plan their right to make their own sta ng decisions. 6 REAL ESTATE Deal could collapse for a long-awaited Brooklyn park; juvenile hall conversion OK’d 8 SPOTLIGHT CONFERENCE CALLOUT This jewelry maker maximizes MAY 15 sales with Instagram Middle-market breakfast: 9 HEALTH CARE Reaching the tipping point Curbing the opioid epidemic Join Crain’s as we bring together will take more than money the founders of some of New 10 VIEWPOINTS York’s fastest-growing midmarket Actress’s run for governor companies. The panel will discuss is a public service; casting growth, innovation, risks and blame won’t x MTA woes P. EURIPIDES capitalizing on trends to nd success 35 PELEKANOS, and grow in the local economy. CEO, Bareburger FEATURES CORRECTION NEW YORK Some 4,700 CUNY students quali ed for ATHLETIC CLUB 12 40 UNDER 40 the Excelsior Scholarship program next fall. 8:30 to 10:30 a.m. Our annual list of the brightest The name of the program was misstated in [email protected] young stars in local business “Tough course,” published March 19.

Vol. XXXIV, No. 13, March 26, 2018—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double issues the weeks of Jan. 1, June 25, July 9, July 23, Aug. 6, Aug. 20 and Dec. 24, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing of ces. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, PO Box 433279, Palm Coast, FL 32143-9681. For subscriber service: Call 877-824-9379. Fax 313-446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire

2 | CRAIN’S NEW YORK BUSINESS | MARCH 26, 2018

P002_CN_20180326.indd 2 3/23/18 7:42 PM MARCH 26, 2018

AGENDATo fund the MTA, Cuomo should keep his eye on the roads

lbany is a strange land, as Mayor Bill de Blasio once observed. at is especially true in late March, when the state budget is due, and in even-numbered years, when elections are held for every Senate and Assembly seat. But even more ingredi- Aents are in this year’s mix: the conviction of Gov. Andrew Cuomo’s former top aide, Joseph Percoco, on corruption charges; the emergence of three challengers to Cuomo’s re-election; and the narrative of New York City’s RENTS IN Yorkville transportation network grinding to a near halt. are up 4% since Under the circumstances, the governor’s marching orders would seem the Second Avenue subway opened but clear: increase oversight f the processes Percoco abused and pass conges- remain either at or in decline else- tion pricing to ease trac and fund mass transit. And so, with the budget where in the city. deadline approaching, Cuomo has been railing about … the New York City Housing Authority? Apparently there’s never a bad time to draw attention to de Blasio’s problems and away from his own. around the world, including here, to build the $2 billion 7-line extension But Cuomo hasn’t forgotten the subways. He is said to be less focused to the West Side. But a sweeping value-capture mechanism is too compli- on congestion pricing to fund mass-transit projects than on another fund- cated to cra by the March 31 budget deadline. Consider the questions: ing mechanism, which relies on increased property-tax revenues gener- Who decides which projects to pursue? How far from transit hubs should ated by rising real estate values in neigh- value-capture districts extend? How would borhoods that get new stations or major Value capture is a promising concept, the increased property values be measured? improvements. What percentage of those extra taxes should For Cuomo, such “value capture” has the but Cuomo needs to focus on a plan go to the MTA, and for how many years? added upside of diverting tax money from that can pass: congestion pricing Should value be captured from projects al- the mayor to the Metropolitan Transporta- ready completed, such as the Second Avenue tion Authority, which the governor controls. subway? Should cost-saving reform of the Knowing such a naked power grab would not y, Cuomo has proposed notoriously proigate MTA be baked into the policy? ways to give the city input. e mayor calls them g leaves, and while For now, it makes more sense to negotiate value capture on a he has no vote in Albany, expropriating city revenue over his objections project-by-project basis, with buy-in from the city. Cuomo should con- would be dicult—and bad politics. centrate instead on congestion pricing, which is simpler and enjoys sup- Value capture is a logical and promising concept that has been used port from the mayor and the City Council. — THE EDITORS

FINE PRINT On April 11 lawyers from the city will sit down in federal court with livery and limo trade groups to discuss their differences on a rule requiring more wheelchair-accessible vehicles. If mediation fails, the business leaders will return April 16 to argue for a preliminary injunction, arguing that the cost of the vehicles will destroy their businesses. Uber and Lyft also oppose the rule but have not joined the court ght.

BY GERALD SCHIFMAN ST A TS 25 WORDS OR LESS SURPRISING SERVICE DESPITE THE MTA’S WIDE-RANGING TROUBLES , bus service has improved during the past few years. A

At the same time, bus speeds have dropped, likely due to heightened congestion. ND T H Unfortunately the “ Additional number of miles city buses 2015–2018 change in scheduled peak-hour bus trips completed countries most hurt are traveling without a breakdown, a +4.8% 1,832 40.2% increase from 2015 E by the new tariffs C ITY are those that are Additional number of miles that +3.1% Staten Island buses are traveling fairest in their trade 14,923 before breaking down, a 225% rise that leads all boroughs +1.8% policies with the +1.1% United States” Average peak-hour bus speed in the city, a decrease of 0.3 mph -0.3% —Byron Wien, Blackstone Group’s chief 7.6 MPH from three years ago Bronx market strategist, in a March 23 note Brooklyn Queens Manhattan to clients Note: Figures compare Jan. 2015 to Jan. 2018 Staten Island

SOURCE: MTA GETTY IMAGES

MARCH 26, 2018 | CRAIN’S NEW YORK BUSINESS | 3

P003_CN_20180326.indd 3 3/23/18 7:57 PM IN CASE YOU MISSED IT CRAINSNEW YORK BUSINESS president K.C. Crain senior executive vice president Chris Crain group publisher Mary Kramer

EDITORIAL managing editor Brendan O’Connor Spending bill’s Gateway REPAIRING the Portal Bridge is the assistant managing editors Erik Engquist, workaround only element of the Jeanhee Kim, Robin D. Schatz Gateway project copy desk chief Telisha Bryan RESIDENT DONALD TRUMP signed o on a $1.3 that’s ready to go. art director Carolyn McClain photographer Buck Ennis trillion government funding package Friday, de- senior reporters Joe Anuta, Aaron Elstein, spite his threats to veto it over a number of issues, Matthew Flamm, Daniel Geiger P reporters Will Bredderman, including cash for the $30 billion Gateway project. e Jonathan LaMantia, Caroline Lewis omnibus bill will deposit $650 million into Amtrak’s ac- data reporter Gerald Schifman count for the Northeast Corridor, which includes the web producer Chris Kobiella crumbling Portal Bridge in New Jersey and the sub- columnist Greg David contributors Tom Acitelli, Yoona Ha, Hudson train tubes the project proposes to overhaul. And Miriam Kreinin Souccar it puts an additional $2.6 billion in the Capital Investment to contact the newsroom: Grants’ coers—money for which the Gateway Program www.crainsnewyork.com/staff 212.210.0100 Development Corp., a joint venture of Amtrak, New Jer- 685 Third Ave., New York, NY 10017-4024

sey Transit and the Port Authority, will doubtless apply. ADVERTISING Most observers viewed Trump’s opposition to the www.crainsnewyork.com/advertise Charles Schumer advertising director Irene Bar-Am, project as revenge on Senate Minority Leader , one of Gateway’s biggest cheerleaders, because he 212.210.0133, [email protected] held up the conrmation of Department of Transportation nominees. And despite the bill’s passage, the adminis- senior account managers tration declared victory anyway, asserting in a press release that the omnibus bill contains no earmarks for Gate- Lauren Black, Zita Doktor, Rob Pierce, Stuart Smilowitz way and underscoring the fact that the DOT will control all the funds. Congress will disburse the $650 million to senior marketing coordinator DOT, which will pass the money on to Amtrak, and the agency has already ruled Gateway ineligible for CIG cash. Charles Fontanilla, 212.210.0145 But one insider Crain’s consulted dismissed these claims as “B.S.” It would be “unprecedented” for DOT not [email protected] sales coordinator Devin Arroyo, to put congressionally allocated money into Amtrak’s accounts, especially because the infrastructure in question 212.210.0701, [email protected] links all points between Boston and D.C.—too vital an area to permanently deny CIG money. CUSTOM CONTENT Meanwhile, don’t count your tunnels before they’re bored. e only part of Gateway ready to undergo work is director of custom content Patty Oppenheimer, 212.210.0711, the Portal Bridge. e construction of a tube to carry trains in and out of Manhattan, and the refurbishment of [email protected] the century-old existing conduit—which Schumer identied as the most vital elements of the undertaking—still custom project manager Danielle Brody, require further environmental review and federal approvals. — WILL BREDDERMAN [email protected] EVENTS www.crainsnewyork.com/events director of conferences & events Airport upgrade DATA POINT The XX factor Courtney Williams, 212.210.0257, e Port Authority of New York and Comptroller Tom DiNapoli said the [email protected] THE CITY’S POPULATION GREW New Jersey raised the hourly minimum New York State Common Retirement manager of conferences & events wage for employees of all three major BY 0.08% LAST YEAR, REACHING Fund will vote against the re-election of Adrienne Yee, [email protected] events coordinator Ashlee Schuppius, airports. Workers, now making $10.45 8,622,690, ACCORDING TO U.S. board directors at companies that have [email protected] per hour, will see their wages increase fewer than two female board members. yearly, eventually hitting $19 in 2023. CENSUS DATA. ALL FIVE BOROUGHS AUDIENCE DEVELOPMENT Bought and sold group director, audience development SAW AN UPTICK, WITH BROOKLYN Jennifer Mosley, [email protected] In good working order Meredith Corp. is cutting 1,800 of the e state Labor Department announced AND QUEENS LEADING THE WAY. 7,000 employees it took on when it REPRINTS reprint account executive Lauren Melesio, that the city’s unemployment rate last acquired Time Inc. and is closing the 212.210.0707 month dropped to 4.2%, its lowest level Sunset Park, Brooklyn, branded and since 1976. e national jobless rate in A bump despite Trump editorial content creation shop, e PRODUCTION production and pre-press director February was 4.1%. More than 62 million tourists hit the Big Foundry. Meredith also is looking to sell Simone Pryce Apple last year, a 3.8% jump from 2016. marquee titles Fortune, Money, Sports media services manager Nicole Spell Junk stocks take a dive ere were 13.1 million international Illustrated and Time. — CHRIS KOBIELLA SUBSCRIPTION CUSTOMER SERVICE e city has been suering through a visitors, despite NYC & Co.’s fears that www.crainsnewyork.com/subscribe shortage of Cheetos, Doritos and other President Donald Trump’s travel ban [email protected] Frito-Lay munchies. e lack of snacks would keep visitors away. Both gures 877.824.9379 (in the U.S. and Canada). has been blamed on parent PepsiCo, are all-time highs. $3.00 a copy for the print edition; or $99.95 which cut driver pay by as much as one year, $179.95 two years, for print 33%, prompting drivers to quit. Blackstone co-founder passes away subscriptions with digital access. Blackstone Group co-founder Peter Entire contents ©copyright 2018 Top of the food chain Peterson died March 20 at 91. He began Crain Communications Inc. All rights e world’s largest Chick-l-A is set to working for Lehman Brothers as a vice reserved. ©CityBusiness is a registered open March 29 in the Financial Dis- chairman in 1972 and le in 1983, trademark of MCP Inc., used under license trict. e 12,000-square-foot, ve-level just before its takeover by Shearson/ agreement. restaurant at 144 Fulton St. has a roof- American Express. Peterson launched CRAIN COMMUNICATIONS INC top terrace. e chain has three other the private-equity rm with Stephen chairman Keith E. Crain locations in the city, all in Midtown. Schwarzman in 1985, retiring in 2008. vice chairman Mary Kay Crain Last call president K.C. Crain Cold, hard facts Above and beyond As of March 27, the MTA will no senior executive vice president Chris Crain secretary Lexie Crain Armstrong A Metropolitan Transportation Author- According to a Tenantwise report, for longer sell alcohol at bar carts on Long Island Rail Road platforms. editor-in-chief emeritus Rance Crain ity report revealed that in January 58% the rst time in four years, air rights chief nancial of cer Robert Recchia of weekday subway trains arrived on for oce projects are outselling those Asked if he ever imbibed on the founder G.D. Crain Jr. [1885-1973] time. at compares with 64% the pre- for condominiums. e online oce- train, MTA board member Mitchell chairman Mrs. G.D. Crain Jr. [1911-1996] vious January. e MTA blamed the space broker calculated that the aver- Pally, a longtime foe of bar carts, worsening performance on bad weather age oce air-rights price last year hit a said, “Never. I wait till I get home.”

BLOOMBERG that damaged equipment. record high: $315 per square foot.

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P004_CN_20180326.indd 4 3/23/18 7:38 PM POLITICS

Council approves fourth of de Blasio’s 15 rezonings Bronx neighborhood to get 4,600 apartments, but businesses face displacement BY JOE ANUTA

he de Blasio administration notched a big To grease the politi- victory March 22, when the City Council cal wheels and provide signed o on rezoning a stretch of Jerome tangible benets for Avenue in the Bronx. Bronx residents bracing TIt’s the fourth of the administration’s 15 proposed for more density in their neighborhood rezoning plans to be approved by borough, the city has ear- the council. marked $189 million for e administration is seeking to jump-start a ord- parks, business-support able- and market-rate housing construction. In this services and more open case, the city expects the Bronx plan will lead to spaces. It also has com- around 4,600 apartments. mitted to opening two UP IN THE BRONX: Transit-rich Jerome Avenue is poised for a big development push. “e Jerome Avenue Neighborhood Plan means schools while preserving historic city investments for long-overlooked Bronx existing a ordable hous- neighborhoods [and] is another milestone in our ing and providing legal assistance for tenants who are administration’s rezoning plans—namely, that they e ort to build a ordable homes and neighborhoods,” a ghting their landlord. focus too heavily on low-income, minority commu- City Hall spokeswoman said in a statement. “It means But those perks were not enough to prevent nities but produce apartments that are too expensive

xing streets, building schools and a ordable homes, more of the familiar, long-running criticism of the for current residents. ■ FLICKR/BIRDLIVES9 and improving parks. It means more and systematic investments in jobs, job training and businesses.” Because vacant land in the city is relatively scarce, the administration oen gets the most bang for its buck by transforming low-density manufacturing zones near public transit into higher-density residential districts. Not only are such areas less populated— meaning fewer people would The mayor’s affordable be displaced by construction and housing plan gains likely to ght momentum, but the proposal— but the rezoning many critics remain also makes them unmoved much more valu- able. e administration then can recapture some of the properties’ in creased value by requiring developers to include permanently a ordable housing in their new projects. At least, that’s the theory. Rents along Jerome Avenue are too low to make market-rate projects economically feasible, so the city likely will be sub- FINE ART LOANS sidizing construction there for the foreseeable future. e requirements of de Blasio’s value-capture program, Mandatory Inclusionary Housing, still will apply and lock in about 1,150 permanently a ordable apartments. Other programs are expected to create hundreds more. Variety of flexible loan structures Bumps in the road Although adding residential density near public transit makes sense, taking away industrial space comes with economic consequences. Jerome Avenue, Discreet & professional service for example, is lined with auto shops that probably will look to relocate should their properties be pur- chased by a developer. e city is providing money to assist displaced businesses, but a similar attempt by Museum-quality storage facilities the Bloomberg administration was largely unsuccess- ful. And several members of the City Planning Com- mission questioned the de Blasio administration’s commitment this time around. Call 888.897.9610 | Visit Borro.com/Crains “e city continues to reduce areas zoned for manufacturing throughout the city without a comprehensive assessment of how those changes may cumulatively impact goods and services New Yorkers © Borro 2018. Borro and its logo are registered trademarks of Borro Limited. Borro Inc., Borro L1 Inc., BL2 Inc., BL3 need and the decent jobs [that could be] lost,” Michelle Inc., and BL4 Inc., are doing business as Borro. Borro L1 Inc. (license no. 1412743), BL2 Inc. (license no. 1435947), and BL3 Inc. (license no. 1467736), are licensed by the City of New York under the Collateral Loan Brokers Law, de la Uz, head of the nonprot Fih Avenue Commit- Article 5 of the New York General Business Law. tee, said at a commission meeting before casting the lone vote against the plan.

MARCH 26, 2018 | CRAIN’S NEW YORK BUSINESS | 5

P005_CN_20180326.indd 5 3/23/2018 7:11:45 PM REAL ESTATE

Long-awaited Brooklyn project in danger of collapse

Developer claims he’s ready to build, but city is out of patience BY DANIEL GEIGER

ourteen years a er Brooklyn- project—although not to the scale that for bidding by other ites were promised a new it was originally conceived. developers. downtown park, it is still Finkelman said he has been seeking American Develop- PARKED: Plans to develop a garage and park not there. And now the deal to amend the development plan with ment had a deadline in are at a standstill. Fto build it—along with a high-tech, the city for several months to reduce 2015 to secure all the below ground parking garage—appears the number of parking spaces in the necessary components to be in danger of collapse. garage to 500 spots from 700 in order needed to break ground on the park and Street, Albee Square West and Du eld e city’s economic development to cut the project’s cost to $60 million garage, including funding and engineer- Street. e demolition and site prepa- arm, which controls the city-owned from around $80 million. e reduction ing plans. e city had extended that ration were funded by the builders of site, doubts the developer has the funds is necessary, he said, because lenders time line in “good faith,” a source said. City Point, a massive mixed-use project to build the project, and it is running are unwilling to nance the larger Finkelman expressed shock that his across the street. City Point developers out of patience. garage but have agreed to underwrite deal to develop the site and operate the were counting on Willoughby Square e Economic Development Corp. the smaller version. A downturn in the garage appeared to be on the verge of Park as an amenity for the building’s “has worked in good faith with the parking industry in recent years has zzling. residents and parking for visitors to its developer for many years to move this made lenders wary of garage projects. “I’m totally abbergasted,” Finkel- ground-level shopping mall. project forward,” said a spokesman. “We very much believe the 700-car man said. “In terms of robotic parking, “Developers were asked to help by “ e development team is not currently garage would have done phenomenally, we’re the only ones in the country who the city, and they agreed to because in a position to close, and we are assess- and that was our goal,” Finkelman said. have the ability to do an automated this is a key project for the neighbor- ing how to best deliver this project for “If we had an institution willing to parking garage like this. We have been hood,” said Regina Myer, president of the Downtown Brooklyn community.” nance that project, we would build it, working for nine years on this project the Downtown Brooklyn Partnership, a e roughly 1-acre green space, to but I’m hampered by what the lending and have invested millions of our own development corporation that manages be called Willoughby Square Park, was market will allow.” dollars into its planning.” three business improvement districts. the largest among a series of neighbor- Finkelman said if the deal were ter- City Councilman Stephen Levin, hood improvements promised by the Sizing down minated, it would likely set construction who represents the area, said had he city as part of a Downtown Brooklyn Finkelman said he shared the idea for back considerably. known the park would be so delayed, rezoning adopted in 2004. the smaller garage with the city in the “ ese plans for the garage are ours,” he would not have supported the dem- In 2013, a er several years of plan- late summer, but it has resisted approv- he said. “My guess is you’re probably olition of apartment buildings on the ning, the city selected Long Island– ing the reduction, which would require looking at a couple of years of more site—which required the relocation of based American Development Group amendments to the development agree- delays [if the project were rebid]. It’s in rent-regulated tenants. to build the park and the 700-car ment that the city entered into with no one’s interest not to move forward.” “Frankly, it’s embarrassing,” Levin automated garage, which would be the American Development. e EDC Setbacks are likely to further frus- said. “ e city took down some residen- largest parking facility of its kind in spokesman refuted Finkelman’s account trate elected o cials and community tial, rent-stabilized buildings because the country. and said the city had entertained the members. e rezoning allowed high- we were willing to all agree that the Perry Finkelman, CEO of both idea of a smaller facility, but American rise residential towers and mixed-use infrastructure being built here was for American Development and its sister Development hasn’t been able to secure developments to sprout across the the public good. But obviously, the lon- company, Automotion Parking Sys- the nancing even for that more modest neighborhood, greatly increasing the ger this all goes on and the longer the tems, which develops automated park- project. need for park space and parking. public good is delayed, the less tolerable ing facilities and was to design and e spokesman said the agency American Development recently it is. Before the 20th anniversary [of the construct the garage under Willoughby would decide within roughly the next nished $2.5 million of work razing 2004 rezoning], that would be my hope Square Park, told Crain’s that the com- month whether to replace American buildings on the site, which spans nearly to have a park. We certainly won’t have pany has the nancing to build the Development and re-open the project half the block framed by Willoughby it by the 15th.” ■

Conversion approved for infamous Bronx detention center Spofford juvenile hall to be overhauled, rebranded BY WILL BREDDERMAN

t was the big house for young peo- $85,860 for a family of four. e city’s ple. Now it will become a home Economic Development Corp. bid out for Bronxites of all ages. the project in 2015 and revealed the e City Council last week vision for the conversion a little more Iapproved a plan to demolish the for- than a year later. mer Spo ord Juvenile Detention Cen- e city built the sprawling deten- ter—known later as Bridges—and tion complex, capable of interning replace it with middle-class and low- almost 300 youths, in 1957 and shut- income housing, retail units, industrial tered the decaying facility in 2011 a er THE PENINSULA: A rendering space, a nonpro t and arts center, a shows the concept for the decades of violence inside its walls. small-business incubator and a 1.2-acre Hunts Point site. “It was an eyesore and an embar- public plaza. rassment to the South Bronx,” said Councilman Rafael Salamanca, who New look for Hunts Point site and the gritty surrounding neigh- Housing Association of New York. advocated for the reimagining of the e South Bronx development will borhood of Hunts Point. e project is e 740 apartments will be priced facility ve years ago, when he served as be dubbed e Peninsula, an apparent a joint venture of the Gilbane Develop- for households earning 30% to 90% of district manager of the area’s commu-

NYCEDC e ort to rebrand both the city-owned ment Co., Hudson Cos. and the Mutual the city’s median income, or $28,620 to nity board. ■

6 | CRAIN’S NEW YORK BUSINESS | MARCH 26, 2018

P006_CN_20180326.indd 6 3/23/18 7:49 PM $FFHOHUDWH

from just a handful 10 years ago to nearly 40 today. āċƫ.+)+0%+*(ƫƫ+"ƫāċćĀŌƫ3%((ƫ!ƫ!û! 0%2!ƫ"+.ƫćƫ)+*0$/ƫ".+)ƫ0$!ƫ +1*0ƫ+,!*%*#ƫ 0!ƫ"+.ƫ((ƫ*!3ƫ,0%)1)ƫ +*!5ƫ .'!0ƫ +1*0/ƫ But consider that Portland, Ore.—with less than a "+.ƫ 1/0+)!./ƫ0$0ƫ-1(%"5ƫ"+.ƫ+,1(.ƫ+( ƫ!3. /ƫ0$0ƫ+,!*ƫ!03!!*ƫ . $ƫāĂČƫĂĀāĉƫ* ƫ 5ƫāĆČƫĂĀāĉċƫ.+)+0%+*(ƫƫ+"ƫāċĆĆŌƫ3%((ƫ !ƫ!û! 0%2!ƫ"+.ƫćƫ)+*0$/ƫ".+)ƫ0$!ƫ +1*0ƫ+,!*%*#ƫ 0!ƫ"+.ƫ((ƫ*!3ƫ,0%)1)ƫ +*!5ƫ .'!0ƫ +1*0/ƫ"+.ƫ 1/0+)!./ƫ0$0ƫ-1(%"5ƫ"+.ƫ+,ġ 10th of New York’s population—has twice as many. 1(.ƫ%(2!.ƫ!3. /ƫ0$0ƫ+,!*ƫ!03!!*ƫ . $ƫāĂČƫĂĀāĉƫ* ƫ 5ƫāĆČƫĂĀāĉċƫ.+)+0%+*(ƫƫ+"ƫāċĆĀŌƫ3%((ƫ!ƫ!û! 0%2!ƫ"+.ƫćƫ)+*0$/ƫ".+)ƫ0$!ƫ +1*0ƫ+,!*%*#ƫ 0!ƫ"+.ƫ((ƫ*!3ƫ,0%)1)ƫ +*!5ƫ .'!0ƫ +1*0/ƫ0$0ƫ+,!*ƫ!03!!*ƫ . $ƫāĂČƫĂĀāĉƫ* ƫ 5ƫāĆČƫĂĀāĉċƫ+1ƫ)1/0ƫ!ƫ!(%ġ “In New York City, you could really serve a neigh- #%(!#%(!ƫ"+.ƫ* ƫ)%*0%*ƫƫ+,1(.ƫ.!/0%#!ƫ$! '%*#ƫ +1*0ƫ%*ƫ+. !.ƫ0+ƫ-1(%"5ƫ"+.ƫ+,1(.ƫ!3. /ċƫ+,1(.ƫ!3. /ƫ!.)/ƫ* ƫ+* %ġ borhood or community with multiple breweries,” said 0%+*/ƫ3%((ƫ,,(5ċƫ(!/!ƫ.!"!.ƫ0+ƫŎ+1.ƫ1% !ƫ0+ƫ+,1(.ƫ.!/0%#!ƫ$! '%*#Ŏƫ* ƫ0+ƫ0$!ƫ+,1(.ƫ!3. /ƫ!.)/ƫ* ƫ+* %0%+*/ƫ"+.ƫ)+.!ƫ%*ġ "+.)0%+*ċƫ1/0+)!./ƫ3%0$ƫƫ +)%*! ƫ !,+/%0ƫ* ĥ+.ƫ+10/0* %*#ƫ(%*!ƫ+"ƫ .! %0ƫ(* !/ƫ+"ƫĸāĀĀČĀĀĀƫ* ƫ)+.!ƫ)5ƫ-1(%"5ƫ"+.ƫ+( ƫ!ġ Alek Marsi, a partner in Production, the new Still- 3. /Čƫ* ƫ 1/0+)!./ƫ3%0$ƫƫ +)%*! ƫ !,+/%0ƫ* ĥ+.ƫ+10/0* %*#ƫ(%*!ƫ+"ƫ .! %0ƫ!03!!*ƫĸĂĆČĀĀĀƫ* ƫĸĊĊČĊĊĊċĊĊƫ)5ƫ-1(%"5ƫ"+.ƫ%(2!.ƫ !3. /ċƫ"0!.ƫ0$!ƫćġ)+*0$ƫ,!.%+ ƫ$/ƫ!* ! Čƫ0$!ƫ,.+)+0%+*(ƫ.0!ƫ3%((ƫ!ƫ/!0ƫ0+ƫ0$!ƫ/0* . ƫ.0!ƫ0ƫ0$!ƫ0%)!ċƫ$!ƫ/0* . ƫ.0!ƫ%/ƫƫ2.% water Artisanal beer depot planned for Greenpoint. (!ƫ.0!ƫ0$0ƫ%/ƫ/1&! 0ƫ0+ƫ $*#!ƫ3%0$+10ƫ*+0% !ċƫ!!/ƫ)5ƫ.! 1 !ƫ!.*%*#/ƫ%*ƫ0$!ƫ +1*0ċƫ+,1(.ƫ+))1*%05ƫ*'Čƫ%*ƫ%0/ƫ/+(!ƫ %/ .!ġ 0%+*Čƫ.!/!.2!/ƫ0$!ƫ.%#$0ƫ0+ƫ $*#!ƫ+.ƫ0!.)%*0!ƫ0$%/ƫ+û!.ƫ0ƫ*5ƫ0%)!ċƫ$%/ƫ+û!.ƫ%/ƫ2%((!ƫ%*ƫ((ƫ+,1(.ƫ+))1*%05ƫ*'ƫ.* $!/ƫ* ƫ 2%ƫ+1.ƫ3!/%0!ċƫ+ƫ-1(%"5ƫ"+.ƫ0$!ƫ,.+)+0%+*(ƫ**1(ƫ!. !*0#!ƫ%!( ƫĨĩČƫ*!3ƫ+.ƫ!4%/0%*#ƫ 1/0+)!./ƫ)1/0ƫ+,!*ƫ*ƫ,0%)1)ƫ +*!5ƫ Outdated zoning rules .'!0ƫ +1*0ƫ3%0$ƫƫ.!-1%.! ƫ)%*%)1)ƫ(* !ƫ* ƫ+,!*%*#ƫ !,+/%0ƫ+"ƫĸāĀČĀĀĀƫ%*ƫ*!3ƫ)+*!5ċƫ!3ƫ)+*!5ƫ%/ƫ !ü*! ƫ/ƫ !,+/%0/ƫ*+0ƫ ,.!2%+1/(5ƫ$!( ƫ3%0$ƫ+,1(.ƫ+))1*%05ƫ*'ċƫ(!/!ƫ.!"!.ƫ0+ƫŎ+1.ƫ1% !ƫ0+ƫ,0%)1)ƫ +*!5ƫ .'!0ƫ +1*0Ŏƫ"+.ƫ"1.0$!.ƫ !0%(/ċƫ* +ƫ But arcane land-use regulations, along with high +,1(.ƫ+.0$ƫ)!.% ƫ%/ƫƫ !)!.ƫ ƫ%*/0%010%+*ƫ* ƫ+,!.0!/ƫ1* !.ƫ0$!ƫ//1)! ƫ*)!ƫė+,1(.ƫ+))1*%05ƫ*'Ęƫ%*ƫ0$!ƫ).'!0/ƫ%*ƫ real estate and capital costs, make things dicult. 3$% $ƫ%0ƫ+,!.0!/ċƫ +. %*#(5Čƫ* +ƫ+,1(.ƫ+.0$ƫ)!.% ƫ* ƫ+,1(.ƫ+))1*%05ƫ*'ƫ.!ƫ0$!ƫ/)!ƫ ġ%*/1.! ƫ%*/0%010%+*ċƫ +,5.%#$0ƫįƫĂĀāĉƫ* +ƫ+,1(.ƫ+.0$ƫ)!.% ċƫ !)!.ƫ ċ Breweries are put in the dreaded Use Group 18 zoning category, which includes tanneries, incinerators and metal foundries, businesses that are kept far from housing—and potential pint drinkers. e rules made sense when coal boilers powered breweries, but there is a growing consensus that they should not apply to small cra operations. “Our half-century-old zoning laws make it almost impossible to nd sites for breweries outside of the heaviest industrial districts,” Marisa Lago, City Plan- ning director, said at a hearing this month. Granted, the byzantine zoning code also allows breweries to set up shop in lighter manufacturing districts if they agree to adhere to limits on noise, pollution and other ill eects. But that exception has caused friction between businesses, architects and the city’s Department of Buildings. “When I le for a brewery with DOB,” said John Bedard, an architect at Kushner Studios, “eight times out of 10 the rst comment I get back is, ‘You can’t do what you are saying you can do.’” e department said the applications can vary widely between those merely producing beer and others with restaurants, and o en they come with draw- ings that are simply not up to code. “Whatever the type of brewery that’s being proposed, DOB is committed to moving construction applications forward as quickly and consistently as possible,” a spokesman said, adding that the department typically reviews applications within ve days. Some observers said the City Planning Department will try to move small breweries out of Use Group 18 altogether, or simply clarify when and how cra brewers can set up shop in lighter manufacturing districts. A report last year from Borough President Eric Adams noted that even though state reforms have helped, city brewers and distillers still face such challenges as waste disposal and dealing with multiple regulatory agencies. If the city eased zoning rules to allow breweries in commercial districts, the industry would be able to grow even more, Bedard said. “New York City has a lot of people, and they like to drink a lot of alcohol.” ■

MARCH 26, 2018 | CRAIN’S NEW YORK BUSINESS | 7

P007_CN_20180326.indd 7 3/23/18 6:37 PM SPOTLIGHT RETAIL

Selling the ring off her finger The more this jewelry designer shares on social media, the more her direct-to-consumer business grows BY ZLATA KOZUL NAUMOVSKI

uring New York Fashion Week in February, when new collections were vying for attention by landing A-list celebrities to sit in the front row, jewelry designer Jennifer Fisher opted to release Ins- tagram images of herself wearing her designs—perforated cu s, chain-link chokers and statement-making rings—available for Dsale through her website. “I’m now the model,” said Fisher, a former Hollywood stylist. “We did some studies, and they show that I sell more jewelry than celebrities.” It’s all part of a strategy that she rolled out last year. She has been marketing directly to consumers through social media since 2010—Jennifer Fisher Jewelry has only a second-oor showroom on Fih Avenue at 18th Street—but since February 2017 she has personalized the marketing by turning the lens on herself. Among the Instagram photos of earrings, charms and bracelets—some encrust- ed with diamonds and costing upward of $7,000—there are now pictures of her husband, children and dog. at intimacy, she believes, makes her appealing to her more than 280,000 followers on the social media platform and drives them to her website. ree-quarters of her merchandise is sold direct to the consumer. “My business has really grown since I’ve been real about everything,” she said. “I want people to see my life, my kids, my dog, my food. When customers nd something relatable and it’s not forced or art-directed, there’s a natural appeal to it.” In the past year, online sales have tripled. Fisher is not the rst to put her life on Instagram to drive sales. But what dis- tinguishes her from so-called social media inuencers is that she is not selling other companies’ products—only her own. It makes sense that the unusual marketing strategy works, given how her jewelry business started. In 2005, aer the birth of her son, friends and family showered Fisher with gis. “But everything felt very imsy and one-note and not my sense of personal style,” she said. She went to the Diamond District and had a dog tag made with her child’s name stamped on it. “I put it on a heavy gold chain, and it became an instant conversation piece,” she said. One celebrity client from her styling business, Uma urman, noticed the necklace and requested that Fisher make her one with charms bearing the names of urman’s own children. Fisher started the jewelry company, and aer a photo of the actress wearing the necklace appeared on the July 2006 cover of FISHER sells both Glamour magazine, requests started pouring in. ne gold and “It was a crazy snowball e ect, and I became known as the celebrity mom lower-priced plated- jeweler,” Fisher said. Her pieces, handmade by craspeople throughout New brass jewelry. York, are worn by Beyoncé, Jennifer Lopez and Naomi Watts, among other celebrity moms.

Traditional retail rules do not apply Fisher’s wares can be found at her showroom, on her website and at online retail partner Net-a-Porter. Until recently they also were available at Barney’s New York, but she ended the relationship. “It never made sense to sell in a store,” Fisher said. “My business requires a high level of customization, and product costs are high. Direct-to-consumer allows me to control the quality.” Fisher declined to disclose revenue for the privately held company but said “business is growing at a dramatic rate,” with online sales surging 50% year over year on average since 2011. “It’s crazy,” she said. Total revenue has increased 38% on average per year since then. “We have been hugely successful with the direct-to-consumer model.” Her inuencer-as-retailer sales strategy is not going unnoticed. In its Feb- ruary issue, Town & Country magazine honored the designer with a retail innovation award. Editor-in-Chief Stellene Volandes described Fisher’s use of FOCAL POINTS Instagram direct sales as “a genius move and a maverick one at that.” Fisher is nding that putting her daily life on social media can take her business in unexpected directions. She now o ers a line of organic table salt. Wish- NAME Jennifer Fisher Jewelry ing to season certain foods without garlic or onion, Fisher concocted her own FOUNDED 2005 spice mixes. “I’m an avid home chef,” she said. “I started putting my food on Instagram.” e reaction was instantaneous, with followers asking her where FULL-TIME EMPLOYEES 10 she got her eggs and what type of salt she was using. Her husband suggested MANAGEMENT Jennifer Fisher, creative director; Kevin Fisher, president; she bottle her blends. A 2-ounce glass jar retails for $12, and they oen sell out. Nina Stuart, global communications director Fisher also plans to make a salad dressing or hot sauce. “I want to be the Paul SALES STRATEGY Direct-to-consumer sales fueled by social media Newman of fashion,” she said. Despite the condiments’ popularity, Fisher said, her core business will always GROWTH RATE 38% per year on average since 2011 be ne jewelry. She plans to expand globally by hosting trunk shows around the TARGET CUSTOMERS Girls and women ages 13 to 80. “Our pieces are world: Australia, London, Paris, Dubai, Hong Kong, Singapore and Tokyo. heirloom quality and meant to be passed on for generations.” “e outpouring we get on social media of people in di erent countries WEBSITE jennifer sherjewelry.com INSTAGRAM @jennifer sherjewelry wanting to host us is huge,” she said. “Women are not shopping in stores like

KARJEAN LEVINE they used to. ey love having things brought to them. It’s personal.” ■

8 | CRAIN’S NEW YORK BUSINESS | MARCH 26, 2018

P008_CN_20180326.indd 8 3/23/18 3:51 PM HEALTH CARE

Curbing the opioid epidemic will take more than money Experts see the need for a bigger buy-in from the city medical community BY CAROLINE LEWIS

ayor Bill de Bla- these patients and you want buprenorphine still aren’t do- to create protocols to oer clinics to have the capacity to sio received everybody who has a problem ing so. “is time, we’re trying buprenorphine in emergency treat patients with opioid-use praise last week to seek help, you have to have to follow up,” Belkin said. departments. at requires a disorder with buprenorphine,” from health care the capacity for that,” said Dr. At the same time, the city huge cultural shi, said Luke Bergmann said. Mproviders and public health Adam Bisaga, a researcher and is trying to diversify where Bergmann, assistant vice pres- Maimonides Medical Cen- o cials for the city’s plan to a professor of psychiatry at it’s available. Most local emer- ident of behavioral health at ter in Borough Park, Brooklyn, spend an additional $22 mil- Columbia University Medical gency departments have yet NYC Health and Hospitals. began oering buprenorphine lion per year to prevent New Center. “And I’m not sure that to embrace evidence that they “e whole idea behind an on-site about six months ago. Yorkers from dying of opioid capacity exists.” can help opioid users enter and emergency department is to “Whatever local and state overdoses. e money, which remain in treatment by start- triage people as fast as possi- and national governments can brings the annual total for Embracing the evidence ing them on buprenorphine. ble,” Bergmann said. “In or- do to make addiction resourc- the HealingNYC initiative to e city is working to rapid- While the city is oering der to engage patients around es more available to us on the about $60 million, will be used ly ramp up access to buprenor- private hospitals technical issues as delicate and compli- ground, that will only help to amp up potentially lifesav- phine, a medication proven assistance to do this, it can’t cated as addiction, you need a us,” said Dr. Reuben Strayer, ing programs. to help stave o cravings for mandate it, a Health Depart- capacity dierent from that—a associate medical director of But behind the scenes, heroin and opioid painkillers. ment spokeswoman noted. capacity that’s relational, not the Department of Emergency there’s growing recognition e goal is to recruit 1,500 Some local hospitals are lead- transactional. And there hasn’t Medicine at Maimonides. “But among experts that getting more clinicians to prescribe ing the charge, however. NYU been.” at this moment we’re focused people the medications that the drug, Dr. Gary Belkin, ex- Langone Health and Mount ere also has to be a sol- on letting opioid misusers successfully treat opioid ad- ecutive deputy commission- Sinai Health System have both id network of outpatient pro- know that in the emergency diction will require greater er of mental hygiene for the received grants from the Na- viders who can prescribe bu- department, we are open 24/7 buy-in from the medical com- Health Department, said at a tional Institute on Drug Abuse prenorphine to continue care and have therapies that are munity. And that takes more recent City Council meeting. to study the practice. aer patients leave the ER. proven to work. Up until now than dollars. Yet many who have gotten the e city’s 11-hospital pub- “We have made it a formal care we haven’t really had anything “If you’re reaching out to necessary waiver to prescribe lic health system is working standard in our primary care to oer them.” ■

MARCH 26, 2018 | CRAIN’S NEW YORK BUSINESS | 9

P009_CN_20180326.indd 9 3/23/18 3:42 PM VIEWPOINTS

Nixon is pushing Cuomo on transit and Nixon is doing New Yorkers corruption. a public service DEMOCRATIC PRIMARY POLL Someone else Actress’s campaign forces Cuomo to address his failures 1% Neither Don’t know 5% 9% DO YOU REMEMBER substantive new programs, but he also is who ran against Bill spending much of his time guring out de Blasio in last year’s how to play a role in national politics. Nixon mayoral race? Should Gov. Andrew Cuomo’s re-election 19% I give you a minute bid was headed in the same direction Cuomo to think? until actress and activist Cynthia Nixon 66% For the record, his decided to take him on in the Demo- Democratic primary cratic primary. All New Yorkers owe GREG DAVID opponents were Sal her a thank-you. She has already started Albanese, Richard to shine the spotlight on two key areas Bashner, Robert Gangi and Michael where the governor has failed badly: the SOURCE: Marist poll, March 11–16 Tolkin, and they garnered transit crisis and corruption about a quarter of the votes. in Albany. In November de Blasio ran % Nixon’s greatest advantage is Her biggest hurdle is proving she Cuomo clearly is rattled by Nixon. against Staten Island Assem- her celebrity, which guarantees knows enough and isn’t, in former He has been ailing about to deect blywoman Nicole Malliotakis, 22VOTER TURNOUT her media attention and gives Council Speaker Christine Quinn’s un- attention from her by intruding on who did not do much better, in the 2017 her a chance to be heard by the fortunate characterization (for which as many matters as possible, such as with 28%. mayoral race voters through what the strate- Quinn apologized), “an unqualied demanding a state investigation of e upshot of facing such gists call free media, helping to lesbian.” Caroline Kennedy seemed Manhattan District Attorney Cyrus weak opponents was that de oset Cuomo’s $30 million war un qualied when Gov. David Paterson Vance’s handling of allegations against Blasio hardly had to break a sweat, chest. If she makes the race interesting, wanted to appoint her to the Senate in Harvey Weinstein. either in his campaigning, defending the media will decide readers and view- 2008, giving one inarticulate interview For now, go Nixon! ■ his record or convincing voters that he ers are paying attention and will devote aer another. (Her performance was had plans for a second term. And guess more coverage to it, even to the extent inexplicable given that she was an eec- GREG DAVID blogs regularly at what? Not only doesn’t he have any of digging deeper on the issues. tive, articulate ambassador to Japan.) CrainsNewYork.com.

Casting blame won’t fix MTA project woes

To lower costs and speed up work, get everyone to the table BY LOUIS J. COLETTI

t might make critics feel good to and labor leaders that I was privileged blame the high costs and frequent to serve on and charged us with nd- delays of mass-transit projects on ing solutions. We concluded that the contractors and organized labor. reforms needed were so complex as to IHowever, the only way to x the Metro- require a new public agency. e School politan Transportation Authority’s cap- Construction Authority was created, ital program is by MTA management, along with new project management contractors and design professionals and procurement laws, and the time working together on reforms. it took to build a school was cut from Yes, labor costs need to be reduced. eight years to four. Contractors historically take very strong Collaboration in the construction positions in negotiating with the union industry used to work. Not today. Per- trades to hold down costs. I expect the haps it is just a reection of what our MTA to take a similarly strong position society has become. Rather than work- with its unions. But there are additional All of this leads to what contractors the policies and sta every 25 years and ing together, it is easier to point ngers reasons for these high costs that have call the MTA tax. Contractors who bid start over again. and blame the “other guys” without tak- little to do with wages, such as con- on MTA contracts without account- To be fair, MTA project managers ing responsibility for one’s own role in tract terms that shi risk to contractors, ing for delays and ineciencies could cannot possibly anticipate everything the problems. including requiring them to pay 100% be out of business before the project that results in delays or additional costs. Let’s take a page out of history and of the costs for delays even if they were is completed. But they need to do better establishing a follow the model established by Dick caused by the agency. Contractors will project’s scope and sticking to it rather Ravitch and others during the city’s s- accept responsibility when they are to Statewide problem than redesigning projects through con- cal crisis by bringing all the disciplines blame. But why should they pay penal- ese obstacles are not unique to tinuous change orders. Again, this is to the same table. An MTA capital pro- ties for delays caused by MTA sta? the MTA. Every city and state agency a fundamental problem of all city and gram that eectively delivers projects Other factors that escalate project has them. New York’s public-works state agencies. on time and on budget is a fundamental costs include long waits for payment, procurement rules, project manage- New York has faced these challenges element to ensuring the continued eco- change orders and the MTA taking ment and contract terms are needlessly before. In 1988 Gov. Mario Cuomo and nomic growth of the city. New Yorkers years to close out a project and release driving up the cost of all city and state Mayor Ed Koch were prepared to invest deserve no less. ■ the contractor’s retainage. ese put projects. What is desperately needed is $8 billion for school construction but contractors in the role of nancing the a major reform of everything. A former refused because it took the Board of Louis J. Coletti is president and CEO of project. Contractors are not banks, but head of a major public agency once Education so long to build schools. So the Building Trades Employers’ Associa- the MTA treats them that way—except told me that the only way to eectively they appointed a task force of industry tion, representing more than 1,000 New

BLOOMBERG, AP, BUCK ENNIS BLOOMBERG, AP, without paying interest. reform public works is to eliminate all and design professionals, contractors York–area contractors.

10 | CRAIN’S NEW YORK BUSINESS | MARCH 26, 2018

P010_CN_20180326.indd 10 3/23/18 3:32 PM Why tax nexus rules matter to your business

Terence Avella: Since various states have different or decades, companies were only re- Businesses that believe they have outstanding unpaid thresholds for in-state sales, including gross revenues and sales taxes should consult a tax professional about quired to collect and remit sales tax if number of transactions, that make businesses subject to potential amnesty or voluntary disclosure programs. For they had a physical presence in a state. sales tax, companies must understand the regulations of example, vendors that stored inventory in various Amazon every state in which they have—or plan to have—some FBut with the advent of online sales and e-com- warehouses in several states without collecting sales taxes sort of economic presence. in them were given an opportunity in 2017 to begin col- merce, that requirement is rapidly changing. lecting sales tax with no penalty. As a result, they avoided A growing number of states have passed tax nex- In the past, it was typically sufficient to know where an paying back taxes or any associated penalties and interest. organization’s personnel and property were located to us legislation, which redefines the circumstances determine whether sales tax should be collected and Crain’s: With economic nexus legislation still under which a company is subject to sales tax. To remitted. Now, however, companies have to also track pending in many states and on the federal level, what gain insight into how tax nexus law is evolving, their sales and economic activity to determine where steps do you recommend companies take today to they have sales tax obligations. Crain’s Custom spoke with two state and local tax ensure adequate tax planning? specialists from Berdon Accountants and Advi- Crain’s: What are some of the key factors that Terence Avella: As of the end of 2017, approximate-

sors, a New York City-based firm that has been companies need to understand regarding how states ly 35 economic nexus bills have been introduced in 17 determine if out-of-state sellers and remote retailers states—with these numbers expected to rise in the near offering expert advice for over a century. are subject to sales tax? future. Additional guidance regarding economic nexus legislation is also expected to be released by the U.S. Supreme Wayne Berkowitz: States often consider the amount Court later in 2018. By monitoring and tracking the latest of sales, in terms of revenue as well as the number of economic nexus rules, a qualified tax professional can as- transactions. They typically take into account both in-per- sess potential tax obligations and exposure going forward. son sales and online marketplace sales, such as those fa- cilitated through eBay and Amazon, to customers based Likewise, e-commerce companies should consult a tax in a particular state, when determining the total amount professional to receive adequate guidance before enter- of sales conducted in a state. ing into any contracts with third-party marketplace facilita- tors. Such contracts often contain guidelines that may not States also consider aspects related to a business’ day- be clear at first glance or to someone who is not familiar to-day operations, such as whether inventory is held with state and local tax rules. An experienced professional and stored in a state. They also often look to employ- can help companies navigate these complex regulations ment-related issues, such as whether an organization has confidently. employees stationed permanently Terence Avella, J.D., LL.M. Wayne K. Berkowitz, CPA, within a state or who regularly travel Senior Principal, Berdon LLP J.D., LL.M. to the state on business. Indepen- Tax Partner, Berdon LLP dent contractors, while often not directly employed by the company, may also cause a business to be subject to sales tax.

Crain’s: What is the origin of economic nexus and how does it differ with regards to income tax versus Crain’s: A number of states sales tax? have enacted economic nexus bills, but the specifics vary from Wayne Berkowitz: In today’s challenging economic state to state. What do those

environment, states are continuously seeking additional variations mean for companies revenue streams to mitigate budget deficits. One meth- with multistate operations? od that has become increasingly popular is economic nexus legislation, which determines tax obligations Terence Avella: Companies

based on a business’s economic activity—typically sales— must be aware of the nuances of within a particular location. A state’s ability to impose tax economic nexus guidelines in each collection formerly required the sellers to have a physical state where they operate. For in- presence in that state. But economic nexus rules apply to stance, in Vermont, a remote vendor sellers that maintain substantial sales in a location within will be subject to sales tax if it made the taxing state. sales within the state totaling at least $100,000, or a minimum of 200 Before states started using economic nexus rules for individual transactions in a given sales tax purposes, some used it for income tax. In both year. In Pennsylvania, however, a cases, the collection of taxes is based upon a measure of remote vendor is subject to sales economic activity in a particular jurisdiction. Most states tax if it conducts sales transactions that have adopted sales tax economic nexus laws have totaling $10,000 in a year. enacted “bright-line” sales thresholds—which specify a threshold of in-state sales—to determine whether or While New York state has not insti- not businesses would be subject to sales tax collection tuted any economic nexus legisla- obligations. States that have implemented income tax tion for sales tax as of March 1, 2018, economic nexus policies tend to vary with their approach, it is important for New York sellers with some states having bright-line tax thresholds and to be aware of the nexus rules in others allowing for a broader interpretation. other states. Failing to do so can put a business at risk of not collecting and remitting the proper amount of Crain’s: How do the tax nexus laws affect companies that are expanding geographically or have sales tax, which can lead to signifi- multistate operations? cant penalties down the road.

An Advertising Supplement to Crain’s New York Business

Ask_The_Expert_Berdon.indd 1 23/03/2018 19:42 HE 18 WOMEN AND 22 MEN on our list of rising New York business stars are making their mark tackling problems big and small. Teaching marketable skills to young people in troubled neighborhoods, easing student debt, making medications more affordable and cutting carbon emissions are just some of the ways they are improving the lives of New Yorkers. To achieve their mission, some Tlaunched startups—there are 15 founders in this year’s class—while others are working within established systems, if not leading them. Together they present a portrait of a thriving, diverse economy and point to a bright future for the city.

PHOTOGRAPHY BY BUCK ENNIS CrainsNewYork.com/40under40

CLASS OF 2018 Amanda Donohue ------P. 24 Lila Neugebauer ------P. 22 Jared Epstein ------15 Mike O’Brien ------19 Michael Barbaro ------P. 23 Ha ze Gaye Erkan ------22 Josh Ong ------26 Porter Braswell ------30 Marcella Fasulo------23 Jeffrey Perlman ------28 Meaghan Brown ------19 Maëlle Gavet ------28 Rami Rahal ------24 Geoffrey Chaiken ------18 Will Guidara ------27 Rashad Robinson ------26 Clea Chang ------14 Jennifer Hensley------21 Amber Ruf n ------14 Arielle Charnas ------16 Luke Holden ------17 Marcela Sapone ------26 Du Cheng ------16 Lexie Komisar ------30 Mario Schlosser ------21 David Chubak ------20 Lauren Letta ------20 Zachary Seward ------30 Benjamin Clymer ------18 Quardean Lewis-Allen ------29 Anjali Sud ------15 Aneliya Crawford ------28 Nicole McKnight ------29 Ritchie Torres ------20 Scott Crouch ------15 Rashmi Melgiri------18 Pedro Torres-Mackie ------16 Priya Dogra------17 Gemar Mills ------24 Chad Tredway ------22

12 | CRAIN’S NEW YORK BUSINESS | MARCH 26, 2018

P012_CN_20180326.indd 12 3/23/18 3:29 PM CN018575.indd 1 3/19/18 11:48 AM I want to feel like I should not be doing what I’m Amber Ruf n, 39 “ Writer and performer, Late Night With Seth Meyers doing. Comedy is forcing yourself to be embarrassed”

eaving together sidesplitting humor and searing com- Ru n thrives on risk-taking and the pressure to produce jokes every day, mentary on politics, social issues and race is Amber sometimes draing skits on breaking news a couple of hours before taping. “I’m Ru n’s sweet spot. e Omaha, Neb., native’s skits on usually the funniest whenever I feel embarrassed,” she said. “I want to feel like I NBC’s Late Night With Seth Meyers—for which she was should not be doing what I’m doing or if I were on a date, I would not be acting nominated for an Emmy and a Writers Guild Award this way. at’s what comedy is for me: forcing yourself to be embarrassed.” last year—have turned her into the show’s breakout Besides Late Night, Ru n writes for Comedy Central’s Drunk History and star as well as a YouTube sensation. Viewers have downloaded her reading of Detroiters. She works on personal writing projects daily and has twice come PresidentW Donald Trump’s 2017 Black History Month speech 730,000 times. close to achieving her ultimate goal: creating her own TV show. In October Ru n’s big break came aer she lost an audition to join Saturday Night NBC green-lighted the development of a sitcom inspired by her marriage to Live in 2013. Meyers, an SNL head writer, oered her a job writing for his new her white, Dutch husband. She was a co-writer and had co-executive producer talk show, making Ru n the rst African-American woman to join a major billing alongside Meyers and Lorne Michaels until NBC dropped the pilot last TV network’s late-night writers’ room. Meyers has become a mentor and a month. Yet Ru n is undeterred. “It is a huge letdown when your shows don’t trusted sounding board for even her wackiest ideas. “He is always right about get made,” she said, “but I’ve been writing things I love long before I had any whether the joke will work,” she said. “Every single time.” attention, and I’ll still be doing it aer the attention’s gone.” — PATRICK COLE

Clea Chang, 36 Chief operating of cer, Intelligence Squared U.S.

n amateur utist, Clea Chang is trying to bring some harmony to the nation’s discordant dialogue. For Intelligence Squared U.S., she is put- Ating together formal, Oxford-style debates, during which debaters with opposing views take turns making their case before an audience, which then casts votes on who has been most persuasive. Old-fashioned? Maybe. But in this age of never-ending arguing on TV, her rm’s debates have found an audience on 225 public radio stations, and its pod- casts have been downloaded more than 4 million times. “ere’s a denite appetite for a discourse correction,” Chang said. She found her way professionally working in marketing at both Columbia House and a speakers bureau, where she learned to deal with authors, journal- ists and others who oen speak at Intelligence Squared debates. Promoted to COO last year, Chang has many debates planned. But she has a more ambitious goal: making candidates follow the Oxford rules in presidential debates, as speakers do in hers. “If you applied the format’s framing and rules,” she said, “you’d really have something worth tuning in to.” — AARON ELSTEIN

14 | CRAIN’S NEW YORK BUSINESS | MARCH 26, 2018

P014_P015_CN_20180326.indd 14 3/22/18 4:48 PM 20%

SNAPSHOT are immigrants

Anjali Scott Crouch, 26 Co-founder and CEO, Mark43 Sud, 34 CEO, Vimeo s an undergrad at Harvard, Scott Crouch thought that by age 26 he would be working toward a Ph.D. in electrical engineering. Instead he Aspends a lot of time in cop cars. amed to the top job at IAC-owned Vimeo in July, Anjali Sud got right Crouch and his future business partners rst started doing ride-alongs as down to business. In September she led the acquisition of Livestream, college juniors, when a professor gave them an assignment to investigate how Nfurthering Vimeo’s mission to empower video creators by providing police collect and share data. them with the technology and the tools to tell stories and build businesses. “What we found was the technology industry had le these guys 20 years Along with Livestream’s technology came a talented team and immediate behind the times,” Crouch said. “So we decided to reinvent from scratch how access to 10,000 new customers, including Spotify, Dow Jones and TED. police ocers work with technology.” Crouch and co-founders Matthew e 400-employee company today has 70 million members and reaches Polega and Florian Mayr started Mark43 before they even graduated. 280 million viewers worldwide. Its subscription revenue is projected to ex- Two years later Mark43 landed its rst big contract, with the Metropolitan ceed $100 million this year. Police Department in Washington, D.C., a force of about 4,000 ocers. In “Our overall strategy is to be a creator’s rst home, repositioning Vimeo order to build out a comprehensive records-management system that ocers from a destination for watching videos to a technology company,” Sud said. could use to analyze and share data, make arrests and le reports, Crouch and She joined Vimeo as director of global marketing in 2014 and later became his co-founders embedded themselves in the department. its general manager. Before that Sud worked at Time Warner in mergers and “We each had our own bulletproof vest and would go out and observe in acquisitions and in marketing at Amazon. But it was her rst job at Amazon every type of situation you can imagine,” Crouch said. e new system collec- that tested her mettle. She was hired as a retail fashion buyer despite having tively saves D.C. ocers an estimated 238,000 hours per year. no experience in the eld. Last year the company launched a computer-based 911 dispatch system, “When you’re thrown into the deep end, you nd strength you didn’t know which is being rolled out in cities in New Jersey, Washington and California. you had,” she said. Next, Crouch said, “We’re building things like digital evidence” to change how It was good preparation for the video industry, which is going through police manage and store audio and video. Investors including Bezos Expedi- massive disruption and innovation. “We have to focus on the mission,” Sud tions, General Catalyst and Spark Capital are convinced Mark43 is essential and said, “and not get distracted by all the things around us.” — JUDITH MESSINA have so far put up nearly $78 million in funding. — CAROLINE LEWIS

Jared Epstein, 38 Vice president and principal, Aurora Capital Associates

ared Epstein got to know the Meatpacking District as a club J promoter in 2001. When he tran- sitioned into commercial real estate and then joined Aurora Cap- ital Associates in 2007, Epstein was convinced the Meatpacking District’s low-slung architecture, cobblestone streets and creative vibe would appeal as much to high-end oce, retail and restaurant tenants as to clubgoers. But he came close to failure in 2009. A $50 million deal to redevelop a 3-story property at West 13th Street and Ninth Avenue zzled aer months of tough negotiations, leaving his Au- rora partners furious. Epstein didn’t accept defeat. He handwrote a three-page letter to the property owners, successfully persuading them to reconsider. “I’m the type of guy who takes out the hose, puts out the re and rebuilds,” he said. at victory helped him convince the family of William Gottlieb, the late landlord who was the neighborhood’s biggest property owner, to team up with Aurora and redevelop its portfolio. Epstein rebuilt a Gottlieb property at Little West 12th Street and Ninth Avenue into a agship store for Restoration Hard- ware. Another Gottlieb building is being razed and replaced with a boutique oce building whose retail space Epstein recently leased to luxury car company Genesis. Epstein has become the dominant developer in the neighborhood. Next, he is leading a project to redevelop a collection of buildings on the south side of Gansevoort Street between Ninth Avenue and Washington Street. While growing up in Marlboro, N.J., Epstein had more people skills than book smarts. But his father encouraged him to think big by giving him a notebook to scribble down quotations from famous minds such as Nikola Tesla, omas Edison and Albert Einstein. “I still have the notebook,” Epstein said. “It taught me that if you have an idea, you have to have the con dence to go with it.” — DANIEL GEIGER

MARCH 26, 2018 | CRAIN’S NEW YORK BUSINESS | 15

P014_P015_CN_20180326.indd 15 3/22/18 4:48 PM Pedro Torres- Mackie, 33 Founder, Quotidian Ventures

decade ago Pedro Torres-Mackie le his troubled homeland of Venezuela for Miami Awith a business degree and enthusiasm for all things tech. Aer attending a tech conference in New York City, he decided to relocate. “ ere was an energy and camaraderie here,” he recalled. In 2010 he founded Quotidian Ventures, which has raised $15 million and invested in 60-plus startups, more than half of them based in New York. e rm provides seed money for soware that transforms existing businesses. “It’s the most fun,” Torres-Mackie said. “You almost go through the founding process with the founders.” In 2016 the fund had two big exits: GM paid a reported $1 billion for driverless-car company Cruise Automation, and a Nor- wegian telecom company bought adtech rm Tapad for $360 million. A hands-on investor, Torres-Mackie until recently ran qLabs, a 13,000-square-foot Flatiron incubator. Real estate soware rm Nestio and mobile communication system Fieldlens, which was acquired by WeWork last year for an undisclosed sum, both launched from there. Torres-Mackie is also a hands-on philanthropist. “He understands why computer science education is important as someone who works in the startup community but also as someone who cares about social justice and opportunity,” said venture capitalist Fred Wilson, who sits with Torres-Mackie on the board of the New York City Foundation for Computer Science Education. at volunteer work inspired Torres-Mackie to get a degree in computer science. “If I was going to talk to the talk, I better walk the walk,” he said. — ELLEN STARK Arielle Charnas, 30 Founder, Something Navy Du Cheng, 30 Founder and CEO, iDu Optics haring what she loves M.D.-Ph.D. candidate, Weill Cornell Medicine with her 1.1 million Ins- Stagram followers is Arielle Charnas’ job. On her account, Something Navy, she recom- ow an M.D.-Ph.D. student, Du Cheng was initially rejected mends New York City’s gems: from college and later from all but one medical school. But the shops, restaurants, exercise studios, hair salons and even doctors she fre- he has since distinguished himself by balancing the rigors quents. “ e girls follow me because they feel like they know me,” she said. In of studying medicine with running his own startup, iDu a sense they do: Charnas posts live, temporary videos a dozen times a day on Optics, which has generated more than $500,000 in revenue. Instagram stories, sharing her outts, daily routines and family rituals. Cheng didn’t score well enough on his entrance exam Charnas started her blog in 2009 as a hobby. e more she posted, the in Zhengzhou, China, to secure college placement, so he spent a year at a more her “girls” wanted to know, which led to a shi in her thinking about the N boarding school that emphasized self-discipline. scope of what she could recommend. Charnas now considers herself a lifestyle He got into Henan University and then through inuencer, not a fashion blogger. an exchange program nished his undergrad- He is fearless Her work is part of a multibillion-dollar inuencer economy in which uate degree at Humboldt State University in “ brands sign talent to reach their audiences. Charnas and her agency, Digital northern California. in a way that Brand Architects, have continuing conversations with big brands including A curious student, Cheng spotted a type of Jockey and Olay about advertising, sponsored posts and other engagements. bacteria related to Lyme disease while at Hum- many students When Nordstrom was looking for a partner for a capsule clothing collection, boldt that had never been previously described. are not” Charnas signed on. Last year’s line sold more than $1 million in the rst 24 “ at was such an amazing feeling to me that hours, according to WWD, although issues with items selling out too quickly nothing else compares to,” Cheng said. led to criticism in the comments on Charnas’ account. Cheng also invented iDu’s best-seller, a camera Beginning in the fall, Charnas will launch the rst collection in a long-term adapter that allows users to take pictures of specimens under a microscope permanent partnership with Nordstrom that will expand beyond apparel and with their iPhone. e device is used at about 2,000 hospitals and universities. into lifestyle and home, with everything in the collection below $250. But Cheng didn’t have a green card when he applied for medical school, “She’s always thinking about her audience in the most genuine way possi- thus making him ineligible for governmental nancial support to further his ble,” said Ariana Pappas, senior talent manager at DBA. studies. Weill Cornell, which has a tri-institutional M.D.-Ph.D. program with Something Navy has three employees besides Charnas; they keep tabs on Rockefeller University and Memorial Sloan Kettering Cancer Center, was the the creative work while her team at DBA handles the business. Charnas has only school out of 30 willing to secure private funding for him. In the end, found a payo in sharing more, not less, about her business and her life and is Cheng received his green card a few months aer enrolling. comfortable with the faint line between the two. Dr. Olaf Andersen, director of the M.D.-Ph.D. program, said Cheng stands “My job is to document my life,” she said. “I don’t think my followers think out for his entrepreneurial approach and desire to solve real-world problems. of me as a businesswoman. ey think of me as an everyday girl who they’re “He is fearless in a way that many students are not.” — JONATHAN LAMANTIA friends with.” — CARA EISENPRESS

16 | CRAIN’S NEW YORK BUSINESS | MARCH 26, 2018

P016_P017_CN_20180326.indd 16 3/22/18 5:10 PM Luke Holden, 34 Founder and CEO, Luke’s Lobster

s a high schooler in Maine, Luke Holden built a boat and became A a licensed lobsterman. By his sophomore year in college, his parents Priya Dogra,38 suggested a more practical career, and Senior vice president, Time Warner Holden followed friends from George- town into investment banking in New York City. Unable to nd a decent lob- hen Time Warner executives hit a snag in their bid to acquire online ster roll in any of the ve boroughs, video platform iStreamPlanet three years ago, Priya Dogra stepped Holden opened a shack with a manager Win to address the target’s concerns about being swallowed up by a he found on Craigslist, Ben Conni. vast media conglomerate. She helped create a phantom stock based on iStream’s e rst Luke’s Lobster opened in October 2009 and sold 500 lobster rolls performance. at nuance persuaded iStream to accept her company’s nearly the rst day. Within three months Holden and Conni were looking for a $200 million oer over rivals Comcast and Adobe. second location. By the end of this year, there will be 33 around the coun- “It was complicated,” said Dogra, who is tight-lipped on the details of her try, which are expected to pull in $40 million in total revenue. e company job striking mergers and acquisitions at Time Warner. grew organically until 2016, when Holden raised money from a private-equity Aer an investment banking stint at Citigroup, where Time Warner was a rm. Conni is now president of the restaurant group. client, she joined the media giant in 2009 and was promoted three years ago. Seafood is expensive. With food accounting for 50% of costs, Luke’s must She was one of only four company insiders to know about initial negotiations sell a high volume of $17 rolls. e signature dish—light on mayo, dusted with for Time Warner’s proposed $109 billion merger with AT&T. Dogra was a spice, loaded onto toasted-and-buttered rolls—begins with fresh lobster. To key negotiator for the deal (internally code-named Rabbit in honor of Bugs provide it, Holden opened a seafood company near Portland, Maine, which not Bunny), which is now on trial aer the Trump administration said the agree- only evens out the supply chain but also supports lobstering communities like ment would give AT&T too much leverage over competitors. the one where Holden cut his teeth. is year Luke’s was certi ed as a B Corp., But at least the publicity has quieted questions from Dogra’s parents, who committed to solving social and environmental problems such as over shing. still live in her native India. “When you work on deals that hit the world news,” “Part of the process is to educate consumers,” he said. “We’re serving food she said, “it changes things.” — AARON ELSTEIN that is traceable back to a sustainable resource.” — CARA EISENPRESS KNOW MORE

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P016_P017_CN_20180326.indd 17 3/22/18 4:50 PM 9 of 40 grew up in

SNAPSHOT New York City

Rashmi Melgiri, 37 Co-founder, CoverWallet

ashmi Melgiri learned in high school that business could be exciting. at’s when she entered a competition in which she and her classmates had to explain why interest rates should rise or fall based on the latest economic and market data. Aer winning the regional competition in Houston, her group was own to Washington, D.C., to make their case before then–Federal RReserve Chairman Alan Greenspan. Aer graduating from MIT, Melgiri landed in management consulting, helping companies gure out how smartphones would change the media business. She began talking with a college friend about starting a company that could disrupt an entire industry, as Apple had. In 2015 the two decided to tackle the insurance business by launching CoverWallet, a rm that helps business owners shop for property and liability policies, much as Kayak helps travelers nd ights. CoverWallet now has more than 100 employees and investors, including Maurice “Hank” Greenberg, former head of AIG. Melgiri was an indierent student until seventh grade, when she developed a crush on a boy named Travis in her school’s gied- student program. She decided to take the entrance exam so she could be in his vicinity more oen. “I really should track him down and let him know how it all worked out,” she said. — AARON ELSTEIN

Geoffrey Benjamin Chaiken, Clymer, 35 Founder and CEO, 35 Hodinkee Co-founder and CEO, Blink Health ne night in February, Ben- jamin Clymer sent out y the time Georey Oprivate cars to pick up 25 of Chaiken co-founded his website’s readers and take them to Bdrug-discount website a surprise event. e high-net-worth Blink Health in 2015, he had New Yorkers—including an actor, a already spent years steeped in surgeon and a professional basket- the pharmaceutical industry. ball player—trusted him enough to A decade earlier Chaiken participate with scant information. had dropped out of Yale to e reception was for a new $45,000 launch Marinus Pharmaceu- timepiece from Swiss luxury brand ticals, a now–publicly traded Vacheron Constantin, and 85% of the company that develops treat- guests ended up purchasing the watch. ments for people with epilep- Underworked at UBS during the sy. He then stepped down as Great Recession, Clymer parlayed his executive vice president to enthusiasm for watches and his dream nish at Yale before entering of being a writer into Hodinkee, a blog about new products, vintage auctions Harvard Business School, and interesting provenances. e articles attracted watch lovers but also brought where he got to learn even more about the pharmaceutical industry. in curious neophytes. His takeaway? “It’s the most complicated supply chain in the country.” “What I found most compelling was that it was an honest interpretation of Patients oen leave drugs on the pharmacy counter, unable to aord them. what they liked and didn’t like,” said Greg Brown, a longtime fan and frequent “Large corporations are making money at the expense of consumers,” Chaik- customer, who said reading the site has made him more passionate about time- en said. “ e challenge of Blink Health was to gure out how to move pre- pieces. Over the past four years, Clymer has transformed Hodinkee from a blog scription drugs online to lower prices and improve experiences.” into an online magazine and shop that has become a protable company, with e solution Chaiken and his co-founder and younger brother, Matthew, $11 million in revenue in 2017, nearly double 2016’s take. Last year Hodinkee developed is what they call a patient union. People sign up as members of became the rst sanctioned online retailer of high-end pieces from Seiko and Blink Health, which allows the company to negotiate prices with pharmacies Vacheron. e type of watches he sells used to be sold only in person in luxu- and drug manufacturers on behalf of the group and then take a cut of the rious champagne-and-caviar settings until Clymer convinced the watchmakers savings. they had to sell online. “ is market is bigger than that market,” he said. Blink members pay a set price for their medication through the website, Having raised $8.5 million from investors in the past three years, Clymer then pick it up at their local pharmacy. intends to broaden Hodinkee’s base, providing readable stories and a luxury “Most of our patients have insurance and come to Blink because their co- online shopping experience as well as events to bolster relationships among pays or deductibles are rising,” Chaiken said. “It’s not a service for a small seg- readers, Hodinkee and brands. “No one needs watches,” Clymer said. “Let’s ment of the population but really for every American.” — CAROLINE LEWIS make it the most fun.” — CARA EISENPRESS

18 | CRAIN’S NEW YORK BUSINESS | MARCH 26, 2018

P018_P019_CN_20180326.indd 18 3/22/18 5:06 PM Mike O’Brien, 39 CEO, iMentor

s a high school teacher in East New York, Brooklyn, Mike AO’Brien discovered multiple barriers to student success. “It’s inspirations, aspirations, family and Meaghan Brown,37 friends. Do you feel accountable? Senior vice president and chief development of cer, Seen? Supported?” he said. Teaching United Way of New York City English and creative writing as well as coaching basketball, O’Brien saw how attention from a caring adult er graduate school, Meaghan Brown ran a health care center in her could help teens transcend challeng- native Philadelphia. Such early hands-on management experience gave ing circumstances. Aher a sense of the real and deep needs of that city’s poorest residents. In 2003, when he heard about iMentor, a young nonpro t that aimed to She brought that awareness to the grant-making and fundraising teams at the pair every student in a high school with a dedicated, college-educated mentor, United Way of Greater Philadelphia and Southern New Jersey in 2010, then to he le teaching to become a front-line case manager. the global philanthropy organization’s New York City branch in 2013. O’Brien, who became CEO in 2007, has helped build iMentor to now serve “We really take the caring, nancial power of donors and create real change 8,500 teenagers in 18 communities across the country. Students who complete in the community,” Brown said of the agency, which runs programs that help the program are 29% more likely to enroll in college and almost twice as likely low-income families eat, learn, work and eventually attain self-suciency. to graduate as their peers, O’Brien said. Last year her team of 17 coaxed some $30 million from 20,000 individual IMentor is a $20 million, 150-employee operation with thousands of and corporate donors. On New Year’s Day Brown became senior vice president volunteer mentors, who interact with teens once a week online and once a and chief development ocer. Her ambition: to make the United Way “the pre- month in person. As of last year, iMentor had worked with 26,000 students. mier philanthropic choice” for those looking to make an impact in their com- In the next ve years, it plans to help an additional 30,000. Mentors work munity—and to inspire employees to take part in the United Way’s charitable with the same student for a minimum of three years, and both parties decide endeavors, not just by giving but by volunteering. whether they want to continue the relationship through college; about 70% “Communities change because everybody gives a little,” Brown said. “We do. “You’re both learning about each other and growing together versus the are a philanthropy that is about mobilizing people to change their community.” mentor coming in as an expert,” he said. — KIM VELSEY — WILL BREDDERMAN

Forward thinking got you here. And it’s what will fuel a future of possibilities. People who are moving the world forward, these are the kinds of people who build our success at EY. We’re pleased to congratulate Amanda Donohue for being named one of Crain’s New York Business 40 Under 40. It’s an achievement that helps drive us all forward.

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MARCH 26, 2018 | CRAIN’S NEW YORK BUSINESS | 19

P018_P019_CN_20180326.indd 19 3/22/18 5:07 PM David Chubak, 37 Global head of retail banking and mortgages, Citigroup

ruth be told, neither David Chubak’s mother nor his ancée was impressed Tby his decision to join McKinsey & Co., the prestigious consulting rm, aer he nished NYU School of Law. “My mother was a math teacher. She said, ‘What do consultants do anyway?’ My ancée said she thought she was marry- ing a lawyer.” eir lack of enthusiasm seemed justied in 2005, when Chubak was rated McKinsey’s worst-performing rst-year associate, he said. Within ve years, however, he was named partner for his work advising big banks trying to remake themselves aer the nancial crisis. When Citigroup’s chief nancial ocer and global head of operations called him for a meeting in 2013, he thought he was being called to pitch another consulting engagement. To his surprise, Citigroup o ered him the job of head of productivity as a new regime streamlined the bank. Last year he was promoted to global head of retail and mortgage banking, becoming the youngest person ever assigned to the post. Chubak was introduced to banking while spending time with his grand- mother, a survivor of Nazi Europe who worked as a greeter at a bank in southern Brooklyn, because she could speak German, Hebrew, Hungarian, Polish, Rus- sian and Yiddish. Today Chubak oversees 65,000 employees, and his job oen takes him on the road. But his family remains in New York, in part because his mother once took a protractor and drew a circle around a map of the metropolitan area, telling her children to stay within its circumference. “We all stayed within the circle that mom would allow us to live in,” he said. — AARON ELSTEIN Lauren Letta, 33 COO, Charity: Water

ashion branding and marketing may seem Flike an unlikely start for the chief operating ocer of an organization that has helped Ritchie Torres,30 provide clean water to 8 million New York City councilman, the Bronx people around the world. But when Lauren Letta rst signed on to work with Charity: Water wo formative events molded Ritchie Torres’ life. One was a in 2010, she wasn’t thinking 2004 internship with then-Deputy Mayor Daniel Doctoro about it as a nonprot. “I was that helped the 16-year-old Torres develop a taste for policy. thinking about it as a brand,” e second came a year later, when he became district man- she said. ager for a day at his local community board under the tutelage Aer meeting founder Scott of James Vacca—who subsequently won election to the City Harrison, Letta was eager to Council and invited the young Torres to join his sta . deploy her brand-building skills Tere might have been a third dening experience for Torres: the crushing to “transform generosity and depression that enveloped him when he dropped out of New York Universi- how people can make a di erty in 2007. Public service gave him the motivation to work his way back to ence in the world.” health. In 2013, at Vacca’s prodding, he ran for an adjacent council district— Operating costs, which last where Torres’ mother had raised him in public housing. year were 30% of the budget, “I’m an introvert who nds small talk and speechifying to be taxing,” the are covered by a set of private councilman said. “I never thought in my wildest dreams I could run a winning donors. at makes soliciting campaign.” easier because contributors Not only did Torres—who is black, Latino and gay—win, becoming the know their funds will go straight to clean water projects. Last year Charity: City Council’s youngest member, but four years later he also set his sights Water saw a 40% increase in donations, bringing the total budget to more than on the body’s highest perch: the speakership. Democratic leaders ultimate- $50 million. Letta, who leads 20 sta ers on the nonprot’s marketing, branding, ly aligned behind Chelsea’s Corey Johnson, but Torres secured the powerful creative and production teams, which includes producing all digital revenue chairmanship of the Committee on Oversight and Investigations, retooled to products, was responsible for bringing in more than half of that. have its own budget and team of sleuths for probing municipal mismanage- In her messaging, Letta balances a sense of optimism with the sobering real- ment. Among Torres’ targets are the notorious New York City Housing Au- ities of the water crisis. For the galas she produces, she helped to come up with thority, the cost-overrun-plagued Department of Design and Construction a challenge for donors: Walk a runway while carrying a 40-pound bucket of and the city’s erratic tax code. water. Last year’s benet raised $8 million. Monthly contributors, meanwhile, “e true power of the council lies not so much in legislation but in over- get access to lms that show how their donations are put to use in the eld. sight,” Torres said. “Oversight and Investigations will serve as the principal ve- “If a brand makes you feel good, if you lead with hope and inspiration,” Letta hicle for fullling the dream of an independent council.” — WILL BREDDERMAN said, “it will be successful.” — KIM VELSEY

20 | CRAIN’S NEW YORK BUSINESS | MARCH 26, 2018

P020_P021_CN_20180326.indd 20 3/22/18 5:55 PM Mario Schlosser, 39 Jennifer Co-founder and CEO, Oscar Health Hensley, 39 s an 8-year-old in Germany, Mario Schlosser became interested in com- President, Link puter programming when a family friend gave him a ZX81, a primitive A home computer. A er graduating from the University of Hannover with a degree in computer science, Schlosser went to work for Inneon Tech- he driving force behind nologies, a German company, in Silicon Valley. Wanting to stay in the Valley the 1,650 sleek kiosks a er his stint ended, he began emailing German professors at Stanford Univer- T that have popped up on sity until he became a visiting scholar in computer science. sidewalks from Brooklyn to the at pluck led him back to Germany to work for McKinsey & Co. and to Bronx over the past two years, Jennifer Hensley is bent on providing the public Harvard Business School, where he met Joshua Kushner, then an undergrad- free Wi-Fi, phone calls, device charging and access to city services, maps and uate. ey co-founded social-network gaming company Vostu. Even while directions. During the planned 12-year deployment, LinkNYC will replace Schlosser worked at the hedge fund Bridgewater Associates, the two built Vostu 7,500 more pay phones and generate $500 million in advertising revenue for into the largest gaming company in Latin America. In 2012 Schlosser, Kushner the city. and Kevin Nazemi directed their tech savvy toward As head of Link, a division of advertising company Intersection, she over- creating a consumer-focused insurance company. sees operations not just in the Big Apple but in cities worldwide. But none are e launch of Oscar Health, which has 235,000 as big or as complicated as New York. members in six states and is reportedly valued at “What makes it dierent is the scale,” she said. $2.7 billion, coincided with the implementation of Hensley cut her teeth in the public-private arena at the Alliance for Down- the Aordable Care Act. e new exchanges pro- town New York, where she had a front-row seat to the rebuilding of Lower vided by Obamacare helped Oscar break into the Manhattan a er 9/11. “It taught me that there’s not really a replacement for market despite the founders’ lack of experience. putting in the time to understand stakeholders,” Hensley said. “We were able to do it just ahead of time to get She went on to jobs as senior adviser to Robert Douglass, chairman of into a new insurance market,” Schlosser said. Empire State Development, and as executive director of the Association for a One of the city’s largest health-tech startups, Better New York. Hensley credits Douglass and others she’s worked with, such with 380 local employees, Oscar has grown its as Bill and Jack Rudin, Dan Doctoro and former Intersection CEO Al Kelly, membership but still needs to prove its model can as sources of inspiration. be nancially viable. It lost $127 million last year “What I’ve taken away from exposure to those greats is that you should in New York, Texas and California on $390 million leave the city better than you found it,” Hensley said, “pushing myself, my in revenue. colleagues and my family to give back and give passionately, because that’s the Undaunted, Schlosser stays focused: “We’re fuel that drives New York.” — JUDITH MESSINA investing to the future.” — JONATHAN LAMANTIA

Congratulations to Chad Tredway We are proud to congratulate Chad Tredway on being selected for the Crain’s New York Business 40 Under 40 list. We applaud his leadership across the commercial real estate industry, at JPMorgan Chase and in the communities we serve.

MARCH 26, 2018 | CRAIN’S NEW YORK BUSINESS | 21

P020_P021_CN_20180326.indd 21 3/22/18 5:55 PM 18 are the firstborn; 5 are the only child;

SNAPSHOT 12 are the youngest

Hafize Gaye Erkan, 38 President, First Republic Bank

hen Haze Gaye Erkan became the No. 2 at First Republic—the 31st largest U.S. commercial bank, with $88 billion in assets—in May, she attained rareed sta- tus. Women are few at the top echelon of big banks, and several of them started out before Erkan was born. Erkan now oversees the bank’s investment portfolio and deposits and heads operations in New York and Boston. She joined FirstW Republic as chief investment ocer and co–chief risk ocer in 2014. Two years later she led the bank’s acquisition of Gradi, a company that facilitates employer payment of student loans as an employee benet. “Our clients range from urban professionals to nonprots to low- or moderate-income millennials, many of whom are struggling with student debt,” she said, noting that the bank has focused on helping college graduates renance large, high-interest loans. Erkan was born and raised in Turkey and earned a Ph.D. scholarship to Princeton, where she studied applied mathematics. Translating theoretical principles into real-world solutions has always fascinated her. As a child she composed operas, then sold them. “Math and music go hand in hand,” she said. Aer earning her doctorate, she led a team and developed investment algorithms at Goldman Sachs, then went to First Republic. “Gaye is a nancial whiz with a deep sense of social responsibility, reecting her immigrant experience and lessons learned from the banking industry’s role in the 2008 nancial crisis,” said Kathryn Wylde, head of the Partnership for New York City, which recently added Erkan to its board. “She will ensure that her institution, while serving wealthy clients, is also helping to build a more equitable society.” — JOE ANUTA

Chad Tredway, 34 Co-head of real estate banking, JPMorgan Chase

n his rst year at JPMorgan Chase’s Park Avenue headquar- Iters, Chad Tredway took peri- odic power naps under his desk to stay sharp during 19-hour workdays. He had to rely on brute force to break into banking’s elite, which is populated with Ivy League degrees and connections he didn’t have. Lila Neugebauer, 32 “I didn’t take a vacation until I was 31,” said Tredway, who since last Stage and television director and playwright year has co-headed the team that writes loans for the country’s biggest landlords. “To have the opportunity he daughter of a psychotherapist, Lila Neugebauer can quickly see to establish myself at the biggest through a character’s hang-ups and foibles. “Why we do the things we I was willing to go all-in bank in the greatest market in the Tdo—how we get what we want—is of endless interest to me,” she said. world was something I was willing “ ose are the building blocks of dramatic action.” “to establish myself at to go all-in for.” Neugebauer’s incisive reading and ability to draw the best from actors have e Chicago native traces his suc- put her on the shortlist to direct important American plays. Last year she won the biggest bank” cess to his father, who was a janitor a special Drama Desk Award for seven plays, including the world premiere of for stock brokerage Dean Witter and Sarah DeLappe’s e Wolves, a portrait of high school girls on a soccer team. sometimes brought his teenage son e Upper West Side native said she honed her abilities around the dinner to work with him so he could mingle with nance executives. table of her “mental-health household.” As a seventh-grader at Hunter College Tredway joined JPMorgan’s Chicago oce in 2008, just as Lehman Broth- High School, she acted for the rst time in 7 Minutes in Heaven, a musical writers collapsed, and helped clean up a portfolio of distressed commercial loans ten by her schoolmate Lin-Manuel Miranda (himself a 40 Under 40 honoree, in in Miami. In 2013 he moved to New York to lead the bank’s lagging business 2009). e experience proved useful: “I learned I wasn’t an actor or performer. of small commercial real estate loans. I was one of those kids who wanted to run whatever club I was in.” He estimates that he called 1,000 small landlords in his rst year alone, Neugebauer has directed two O-Broadway plays this year and has two more and he once spent the night in a boiler room in Queens to help an owner opening within weeks, including Tracy Letts’ Mary Page Marlowe at Second gather the documents necessary to qualify for a $3 million loan. “ rough Stage eater. She recently directed an episode of Room 104, an HBO drama hard work, drive and leadership, Chad has made a real impact on our clients, by Jay and Mark Duplass. Asked about being mentioned as the next woman to our business and our community,” said JPMorgan Chase CEO Jamie Dimon. break into big-budget Broadway, she said she would be interested in the right Tredway doubled the bank’s portfolio of small commercial loans to $10 project, be it theater, television or lm. “For me across any medium,” Neuge- billion in less than four years. “Every deal counted,” he said. — DANIEL GEIGER bauer said, “it’s about the artists that I get to collaborate with.” — PATRICK COLE

22 | CRAIN’S NEW YORK BUSINESS | MARCH 26, 2018

P022_P023_CN_20180326.indd 22 3/22/18 6:05 PM Michael Barbaro, 38 Host, The Daily

tarting with his middle school paper route, delivering the Marcella Fasulo, 37 SNew Haven Register, Michael Barbaro has worked in all kinds of Senior managing director, Cushman & Wake eld newspaper jobs, including covering nance for e Washington Post and two presidential campaigns for e t age 11, Marcella Fasulo already knew how to drive a hard bargain. New York Times. So aer the 2016 When her father bought a car, she negotiated the deal. And when he election, when the opportunity arose Apurchased a home outside Chicago, she researched a list of compara- to become the host of the Times’ ble sales and got 5% knocked o the price. inaugural daily podcast, he was ready “I always loved negotiating,” Fasulo said. “It felt very natural to me.” for the challenge. Two years aer graduating from Northwestern, she scored an interview with What Barbaro couldn’t have ex- Darcy Stacom, CBRE’s top seller of billion-dollar skyscrapers. “We clicked,” Fa- pected was how fast e Daily would sulo said. “Darcy has a talent for understanding people’s personalities.” take o, generating more than 1 million downloads each weekday and draw- Fasulo joined CBRE in 2005. She had natural sales skills and the drive to ing wide praise for the sensitivity of Barbaro’s interviews and fresh approach keep pace with Stacom’s famously intense schedule, but she needed a niche. to the day’s top stories. Helped by a team of veteran radio producers, he has Noticing that the ow of foreign money into property deals was on the rise, connected the Times to a younger audience and new sources of digital ad rev- Fasulo in 2012 began traveling to Qatar, China and Europe to pitch to buyers. enue. e podcast is more unpredictable than one might expect from a Times On one trip she introduced Greenland Group, one of China’s largest production. Although he has had coaching to give his voice more gravitas, property rms, to the owners of what was then known as Atlantic Yards, a “you can’t hide how you feel,” he said of the audio format. (He also has scored 15-building residential and mixed-use development in Brooklyn. In a deal one unexpected accolade: People magazine put him on its Sexiest Man Alive Fasulo helped arrange, the rm wound up acquiring a majority stake in the $4 list last year.) billion megaproject. In 2016 she joined a Cushman & Wake eld group that is Barbaro attributes the podcast’s success mostly to its other star: the news- the city’s top sales team, giving her a platform to arrange bigger deals, such as room. “I have derived a lot of grati cation out of humanizing reporters, which Allianz’s purchase of an $800 million stake in 1515 Broadway and Blackstone is a not-so-secret mission of e Daily,” he said. “A story in print can do that, Group’s $750 million investment in 1 Liberty Plaza. — D.G. but hearing them talk through a line of reporting is dierent.” — MATTHEW FLAMM

YEARS

UNITED WAY OF NEW YORK CITY

Vision. Dedication. Community. United Way of New York City understands that success is built on more than just talent. We are proud to applaud our colleague, MEAGHAN BROWN as one of Crain’s New York Business’s 40 Under 40, and extend our warmest congratulations to the other amazing honorees.

Meaghan Brown_Ad_Ad_9.125X6.875_01.indd 1 3/15/18 5:20 PM

MARCH 26, 2018 | CRAIN’S NEW YORK BUSINESS | 23

P022_P023_CN_20180326.indd 23 3/22/18 6:06 PM Amanda Donohue, 38 Cushman & Wakeﬁ eld Principal, EY

Y has long received kudos for pro- moting female executives. But nine Congratulates Eyears ago, when Amanda Donohue looked around her nancial- technology consulting department, “I didn’t see any- one who looked like me,” she recalled. “I was about to go on maternity leave, and I thought, Am I going to be able to do this?” at experience moved her to develop Marcella Fasulo a rmwide women’s mentoring program to connect female employees with female senior managers across departments and locations.“It’s important for women Crain’s New York Business at junior levels to be able to look up at great female leadership they can align with, especially when they might not see it at their own location,” she said. Donohue is a leader of EY’s Professional Women’s Network in addition to 40 Under 40 Class of 2018 running the rm’s Greater New York market segment, for which she manages relationships with dozens of Fortune 500 clients who need EY’s expertise to use accounting and nancial soware more eectively. Marcella’s dedication and outstanding work “Amanda is very action-oriented,” said Sonia Sande, a fellow principal at EY. “She cares passionately about developing people, and what makes her dierent is that she’ll actually go and set up new groups and mentoring networks.” on the Institutional Capital Markets Team Indeed, Donohue and her husband helped begin the New York chapter of the Star Legacy Foundation aer their third child was stillborn; they raised make her well-deserving of this honor. $200,000 for stillborn research in two years. “So many people were there to help me,” she said. “I just want to pay it forward.” — HILARY POTKEWITZ Marcella Fasulo Senior Managing Director Gemar Mills, 35 Chief education of cer, The Future Project Executive director, College Achieve Charter Rami Rahal, 31 School Co-founder and managing partner, Blue Cloud Ventures aving turned around one of the worst- native of Lebanon, Rami Rahal came to the U.S. for grad Hperforming high school at Columbia in his early 20s and quickly caught the schools in the country, Gemar entrepreneurial bug. “I saw young kids starting companies, Mills is now bringing his tal- and I was completely impressed,” he said. e failure of his ents to the national stage. As rst startup, instant-messaging company Jot Messenger, didn’t chief education ocer of e diminish his fervor, but it did set him on a path to become a Future Project, a nonprot in venture capitalist. “I had good ideas but no idea how to execute,” Rahal said. Union Square that seeks to reinvent the nation’s high schools, he works with A“With VC, you back people who are smarter and more experienced. at con- schools and principals across the country to help students build skills and cept was appealing to me.” gain the condence they need to realize their dreams. Aer a tech consulting job, Rahal “I was interested in spreading my wings and seeing if the case study at landed in investment banking, where Most tech companies [Malcolm X Shabazz High School in Newark, N.J.] could be replicated across he met his future business partner, “are founded by America,” said Mills, who started out as a math teacher at 22, became math Mir Arif, then head of Madison Park department chair of Shabazz at 25 and was principal at 28. Group. “He was probably the most young guys. He’s Today, through e Future Project, Mills is working with 50 high schools entrepreneurial and energetic guy in across the country, reaching 30,000 students. But that’s not enough for this the oce,” Arif recalled. Just 25, Rahal able to resonate and entrepreneurial educator, who recently completed a Ph.D. in educational pitched his boss on setting up a venture leadership and administration and wrote a soon-to-be-published book about capital rm. connect with them” his experience in Newark. In September he opened College Achieve Charter e company they launched in School in his hometown, Paterson, N.J. e K–9 program has 270 students 2012, Blue Cloud Ventures, has raised $162 million and invested in 24 so- and expects to enroll 490 in September and have 960 total in four years. Mills ware companies to date, including three based in New York: Tapad, Reval and is already envisioning a high school a few years down the road. Conductor. With seven employees, Blue Cloud targets growing companies but His passion for education comes out of his experience attending a failing oers more exibility about the amount they will invest, ownership stake and school across the street from the housing project where he grew up. Sports exit schedule than bigger late-stage VC rms do. turned things around for him, and college became a game changer. In this business, Rahal’s age is an asset, Arif said: “Most tech companies are “Education was truly the equalizer for me,” he said. “Are we producing the founded by young guys. He’s able to resonate and connect with them.” minds that are going to be world changers 20 to 30 years from now? I want to — ELLEN STARK be a leading force in achieving that goal.” — JUDITH MESSINA cushwakenytristate.com

24 | CRAIN’S NEW YORK BUSINESS | MARCH 26, 2018

P024_P025_CN_20180326.indd 24 3/22/18 6:55 PM CN018571.indd 1 3/19/18 11:46 AM Cushman & Wakeﬁ eld Congratulates

Marcella Fasulo Crain’s New York Business 40 Under 40 Class of 2018

Marcella’s dedication and outstanding work on the Institutional Capital Markets Team make her well-deserving of this honor.

Marcella Fasulo Senior Managing Director

cushwakenytristate.com

CN018571.indd 1 3/19/18 11:46 AM 17 have a postgraduate degree; 3 stopped at their high school

SNAPSHOT diploma

Marcela Sapone,32 Josh Ong, 34 CEO, Hello Alfred Director of global brand strategy and communications, aving worked 90-hour weeks as a McKinsey consultant, Cheetah Mobile Marcela Sapone understood the need for a company like Hello Alfred, the tech-enabled personal concierge service that she founded with Harvard Business School classmate Jessica Beck in 2014. But Sapone’s interest in n six years covering tech as a journalist, Josh Ong worked his way up making urban life livable goes back a lot further. from a reporter at AppleInsider to the U.S. editor at e Next Web. When anks to her father, whose career took the ICheetah Mobile approached him with a job oer in 2014, he jumped at Hfamily overseas, she did much of her growing up the chance to go from writing about technology to working in it. It feels like in Copenhagen and then Paris, where she ab- “ “I had been telling a lot of dierent stories about a lot of dierent compa- sorbed Scandinavian minimalism and the Pari- the market has nies,” Ong said. “I thought it would be interesting to tell just one story.” sian good life. e experience gave her a taste e Beijing-based mobile app developer had just gone public. Since then for “utilitarian luxury” and contributed to Hello caught up Ong, who heads the New York oce and oversees a team of eight, has helped Alfred’s obsession with guring out how to run transform the brand into a content company with a billion dollar–plus mar- a household for people who are rarely home. with us” ket valuation and 580 million active monthly users. “It turned into a kind of quest,” Sapone said. One of the major ways he’s done that is by doing market research and new e solution: a home manager—namely an Alfred, aer Batman’s butler— product development and creating advertising and marketing strategies for who, just for starters, uses algorithms and the keys to a client’s apartment to companies in which Cheetah Mobile has invested. Last year Musical.ly, an app anticipate their needs, keep the fridge stocked and put away the dry cleaning. that helps users make music videos, sold for almost $1 billion to ByteDance Revenue surged 600% in January as the company signed deals to become aer his team helped work on its commercial strategy. He also worked with an in-house amenity at scores of luxury high-rises, including the entire rental French aggregation site News Republic, which Cheetah bought for $57 million portfolio of e Related Cos. “It feels like the market has caught up with us,” in 2016 and sold a little more than a year later for $87 million. said Sapone, who sees the service expanding beyond its current upscale us- “It’s my belief that every company of a certain size is a media company,” ers. “It’ll be a program that works in the background, making your life easier.” he said. “At some point it becomes primarily concerned with the creation, — MATTHEW FLAMM distribution, amplication and promotion of content.” — KIM VELSEY

Rashad Robinson, 39 Executive director, Color of Change

year ago, when the news broke about Bill O’Reilly’s sexual Aharassment settlements, an activist civil rights organization swung into action against the Fox News host, who had earlier falsely claimed he was attacked by black assailants during the Los Angeles riots. Color of Change quickly mobi- lized its 1.2 million online members to pressure advertisers to pull their spots from e O’Reilly Factor. e members signed petitions, made thousands of phone calls and rallied outside Fox headquarters. Within weeks more than 60 corporations had withdrawn their advertising, and O’Reilly got the boot. “You have to get to the source of the money if you want to eect change,” said Rashad Robinson, who had moved from the number two post, as senior director of media programs, at gay-rights organization GLAAD in 2011 to head up Manhattan-based Color of Change. Since then the nonprot’s annual operating budget has jumped to $13 million from $650,000, and the sta has grown to 65 from ve, making it the largest online civil rights group in the U.S. Under Robinson’s leadership, Color of Change forced more than 100 corporations, including Wal-Mart and Kra, to leave the American Legislative Exchange Council aer its involve- ment in passing voter-ID laws. It convinced credit card companies not to let cardholders charge donations to white supremacist sites and pushed more than 50 corporations to leave President Donald Trump’s business council. As a teen activist in Riverhead, Long Island, Robinson won ghts on issues important to his peers, such as local stores barring high schoolers during school hours. “I like people, I like strategy,” Robinson said, “and I like to think about how to win and how to make change happen.” — MIRIAM KREININ SOUCCAR

26 | CRAIN’S NEW YORK BUSINESS | MARCH 26, 2018

P026_P027_CN_20180326.indd 26 3/22/18 7:38 PM Will Guidara, 38 Co-owner, Make It Nice

restaurant’s dining room is Will Guidara’s domain, the place where he masterfully serves up a sensory experience to customers. Guidara, Aco-owner of the hospitality group Make It Nice—which owns and operates New York’s Eleven Madison Park, Made Nice and e NoMad—has known since childhood that he wanted to work on the hospitality side of restaurants. But a few years into his career, he’d grown disillusioned that chefs had gained power over the front-of-house managers, with the quest for perfect food trumping the importance of customer experience. “In the dining room, we want to make people happy,” he said. Despite his waning enthusiasm, he took one last shot in 2006 with a job at Eleven Madison Park, then owned by Danny Meyer. It turned out that the restaurant’s chef, Daniel Humm, valued hospitality as much as food. Teaming up with investors, the pair bought the restaurant in 2011 and have since reinvented the menu and customer experience several times. Last year the Michelin Guide declared it the best restaurant in the world. What delights Guidara is delighting his customers. “When we rst do a new course at Eleven Madison Park, I creep into the corner and watch the guests receive it,” he said. “ e look on their faces is what I live for.” Guidara opened a NoMad location in Los Angeles in January and will launch another in Las Vegas by the end of the year. He also runs the Wel- come Conference, an event centered on hospitality. Its attendance grew from 300 to 1,000 annually over four years. It’s Guidara’s conviction about the primacy of helping people enjoy themselves that has brought him success. “Everyone wants to follow him because he knows what he wants and how to get there,” said Laura Wagsta, special-events director for e NoMad. — CARA EISENPRESS

AMERICA’S DEBATE SERIES PROUDLY CONGRATULATES CLEA CHANG FOR HER INCLUSION IN THE 40 UNDER 40 CLASS OF 2018

MARCH 26, 2018 | CRAIN’S NEW YORK BUSINESS | 27

P026_P027_CN_20180326.indd 27 3/22/18 7:17 PM 24 live in Manhattan; 5 live in the

SNAPSHOT suburbs

Maëlle Gavet, 39 Chief operating of cer, Compass

esidential brokerage startup Compass wanted to grow quickly, so it tapped serial entrepreneur Maëlle Gavet as its chief operating o cer last year. Gavet had little experience in real estate, but she is an expert in scaling both public and private tech companies. Gavet is putting that expertise to work with the consider- able help of a $450 million investment from Japanese conglomerate SoBank, Rmade in December. Compass is now valued at $2.2 billion and has around 2,800 agents nationally. By year’s end Gavet expects to roughly double the workforce. And by 2020 the goal is to have a 20% market share in 20 cities. Scaling up without distorting the original idea behind Compass could prove her biggest challenge. “How do you preserve the culture and entrepreneurial spirit when there is a tendency Will there be an to invest in processes and systems that kill that “ spirit?” she said. IPO somewhere French-born Gavet started her rst business, a children’s birthday party and event down the line? company, at age 16. “I have a very well-used clown costume at home,” she said. Probably” Aer college Gavet, who also speaks uent Russian, ran an e-commerce company in Moscow and was head of global operations at publicly traded travel-booking website Priceline before landing at Compass, where observers have speculated that she will lead the company toward going public. “Will there be an IPO somewhere down the line? Probably,” she said. “But my biggest focus is how do we get enough people to open in new markets right here and right now.” — JOE ANUTA

Jeffrey Aneliya Perlman, 38 Crawford, 39 Founder and CEO, Partner, Schulte Roth & Zabel Bright Power

neliya Crawford just came o a ushing for energy e ciency victory in the largest proxy bat- can be a challenge, no matter Atle in Wall Street history. She Phow compelling the argu- represented activist hedge fund Trian ments. Partners against consumer-products “People tend to think about giant Procter & Gamble and managed Jimmy Carter and wearing sweat- to bend the $222 billion behemoth to ers,” said Jerey Perlman, founder her client’s will. Namely, a seat on P&G’s and chief executive of Bright Pow- board of directors was being sought for er, referring to a televised address Trian founder and corporate agitator by the cardigan-wearing president during the 1970s energy crisis. Nelson Peltz. He had openly blamed It was a problem Perlman had to solve aer starting his own energy- P&G’s management bureaucracy for the consulting company in 2004. e goal was to persuade owners to cut down company’s languishing stock price. on carbon emissions from buildings, which account for three-quarters of the “At its core, shareholder activism is a ght, and I’m a ghter,” Crawford city’s greenhouse gases. While landlords were willing to listen to his pitch, they said. “It’s a contest: Whose strategy is superior?” were less willing to push their contractors to install the green infrastructure. Crawford has been involved in some 200 shareholder-activist campaigns. “We realized we needed to be more integral to the process and oer turn- Corporate boards have become complacent, she said, which “creates an insu- key solutions,” Perlman said. So Bright Power became a contractor itself. And lar culture that doesn’t allow for new ideas.” that’s when the growth happened. She developed an early distaste for insular bureaucracies while growing e company now has 115 employees across several states and countries. up in 1980s Bulgaria. “It was Communist times,” she recalled. “Everything Buildings in 49 states use its soware to track energy use. And while Bright was very hierarchical.” Crawford studied English and business, and when the Power is still a consultant, more than half of its revenue comes from install- country started opening to the West in the early 1990s, she jumped at the ing solar panels, heating upgrades, water-saving devices and energy-e cient opportunity to leave. light bulbs. Its customers collectively prevent global-warming emissions Aer a few years of odd jobs in New York—at a Bulgarian newspaper and equivalent to what one 16.3-megawatt coal-red power plant produces. a French bank—she applied to law school and never looked back. “I want to continue to innovate and make all the things happen that are “Aneliya didn’t follow the conventional path. She wanted more,” said Ele necessary to keep our planet habitable,” Perlman said. “But to do that, the Klein, co-chair of the Shareholder Activism practice at Schulte Roth & Zabel. solutions need to make sense economically, and we have to make it easy for “She doesn’t care what the conservative, accepted orthodoxy is. Her approach the real estate community.” — J.A. is, ‘So what do we have to do to get this done?’ ” — HILARY POTKEWITZ

28 | CRAIN’S NEW YORK BUSINESS | MARCH 26, 2018

P028_P029_CN_20180326.indd 28 3/22/18 7:53 PM Quardean Nicole Lewis-Allen, McKnight, 37 30 Managing director, BioLabs New York Founder and CEO, Made in Brownsville icole McKnight, a Massachusetts native, grew up marveling at the biotech innovation percolating in er earning a master’s in NCambridge’s Kendall Square neighborhood. architecture from Harvard She even got her rst summer job aer high AGraduate School of Design, school at a pharmaceutical rm. Quardean Lewis-Allen could have She became aware of the need for a similar entered the world of corporate archi- biotech hub in New York in 2011, when she tecture. But the third-generation moved to the city for a postdoctoral fellowship Brownsville resident returned to Brooklyn to design something grander. in neurology at the Icahn School of Medicine At Harvard he was keenly aware that he was a rarity in the art and design at Mount Sinai. elds. “I was wondering why there isn’t a pipeline for people of color to be in “I started getting involved in what was these professions,” he said. then a very nascent biotech entrepreneurship Lewis-Allen founded the nonpro t Made in Brownsville in 2013 to teach scene,” McKnight said. “It seemed very obvi- skills such as graphic design, 3-D design and fabrication, apparel and product ous to me that the lack of aordable commer- design, photography, videography, coding and ne arts to young adults ages cial wet lab space for biotech was one of the 14 to 24. So far 129 people have participated in the program, and several have main reasons New York wasn’t succeeding at become freelancers for the nonpro t’s creative agency while they work toward commercializing the inventions coming out of job placement or entrepreneurship. its great academic institutions.” Made in Brownsville’s clients have included the Brooklyn Children’s Muse- Aer founding a small incubator called Kiiln with four other women—a um, the city Health Department and the TV show Shark Tank, for which the project McKnight found empowering in the male-dominated biotech eld— nonpro t designed marketing materials for a casting call. she was approached in 2014 by a former mentor from Massachusetts to start Lewis-Allen, who is also an adjunct studio instructor at City College, ex- up the New York incarnation of BioLabs, a co-working space that was taking pects the organization to grow its revenue from client projects nearly vefold, o in Cambridge. to $72,000, this year. e nonpro t has a $600,000 budget, with most of its Finding and funding a space big enough was a massive challenge. But aer funds coming from foundations. getting grants from the city and landing a partnership with NYU Langone Lewis-Allen is preparing to move operations to a larger location in the Health, BioLabs New York is nally open for business. It has 50,000 square neighborhood, where he will be able to t a full woodshop, a laser cutter, a feet of space in Lower Manhattan. 3-D printer and printmaking equipment. With the city and the state now funneling hundreds of millions of dollars “Round one is giving them the tools to exponentially grow their skills,” into the burgeoning biotech industry and other organizations opening up sim- Lewis-Allen said. “My vision for Made in Brownsville is to employ hundreds ilar facilities, McKnight said her next goal is achievable: “New York can de - of people in a large creative agency.” — JONATHAN LAMANTIA nitely be among the country’s top three biotech hubs.” — CAROLINE LEWIS

CRAIN’S EXECUTIVE MOVES

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KeyBank Branch Lease Local Contact Company Branch Address City State Zip Close Interest ǆƉŝƌĂƟŽŶ Broker Phone Email Address Name Name Date Date Name Number

ENY - Syracuse

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ZŝĐŚĂƌĚ: ƵƐŚŵĂŶ ϰϮϭ^ĞĐŽŶĚ ^ĐŚĞĐŚƚĞƌ͖ zŽƵŶŐƐƚŽǁŶ zŽƵŶŐƐƚŽǁŶ Ez ϭϰϬဓϮ ϲͬϭͬϮϬϭဒ KǁŶ Eͬ tĂŬĞĮĞůĚ ϳϭϲͲဒϱϮͲϳϱϬϬ ƌƐĐŚĞĐŚƚĞƌΛƉǇƌĂŵŝĚďƌŽŬĞƌĂŐĞ͘ĐŽŵ ^ƚ dǇůĞƌ ƚďĂůĞŶƟŶĞΛƉǇƌĂŵŝĚďƌŽŬĞƌĂŐĞ͘ĐŽŵ WǇƌĂŵŝĚ ĂůĂŶƟŶĞ

KeyBank_6x6_4.2insertion.indd 1 3/5/2018 4:59:59 PM

MARCH 26, 2018 | CRAIN’S NEW YORK BUSINESS | 29

P028_P029_CN_20180326.indd 29 3/22/18 7:48 PM Lexie Komisar, 31 Global program director, IBM

arly on Lexie Komisar knew she wanted to help solve some of the world’s big problems, Esuch as climate change and poverty. “My mission is to push society forward,” she said. So aer college, it was o to Mexico City to study public policy as a Fulbright fellow, then back to her native New York for a stint at Rockefeller Philan- thropy Advisors, then on to the Clinton Foundation, where she worked on digital health. But Komisar had to pause when confronted with a crisis: A person close to her became sick and died three years ago. “When someone is at the end of life,” she said, “it makes you think about your own.” Komisar decided that what she really wanted was to work more closely with the businesses and people building and dening tech’s future. IBM may have seemed like an odd choice, but she determined that Big Blue’s scientists and researchers, who built the Watson supercomputer and did pioneering work in articial intelligence, best understood technology’s potential. She landed a job as a founding member of IBM’s Digital Innovation Lab and in February was promoted to focus on bringing IBM’s expertise to startups and innovative thinkers. “I don’t believe in a world where work and life are separate,” Komisar said. “When you are passionate, they’re one and the same. I want to live a passionate life.” — AARON ELSTEIN

Porter Braswell, 30 Co-founder and CEO, Jopwell

t took more than talent and hard work for Porter Braswell to go from Zachary Seward,32 an elite New Jersey boarding school to Yale and then to the foreign- Senior vice president of product, Quartz exchange trading oor at Goldman Sachs. He credits the example of his father, a lawyer who was the rst in his family to go to college, as well as a diversity-recruitment program that introduced him to a achary Seward got an early start in journalism, co-authoring a scoop career in nance through a high school internship at Morgan Stanley. for e Wall Street Journal while a junior at Harvard. But his career While helping Goldman recruit talent, Braswell saw the limits of eorts to Zpath has been anything but straightforward. He spent so much time Iattract diverse job-seekers. He thought he could improve minority-recruiting covering embattled Harvard president Lawrence Summers for the Harvard methods and solve the biggest problem: the narrow candidate pipeline. He Crimson that around the time he got the intel that Summers was stepping and fellow Goldman analyst Ryan Williams saw down, Seward had failed out of school. an opportunity. This is e good news was that he had a job at the Journal. A couple of years later, “We knew hundreds of nonprots doing amaz- he was back at Harvard helping launch the Nieman Journalism Lab, dedicat- ing work but on a small scale,” Braswell said. “We “a thing ed to guring out media’s digital future. He has that role at Quartz too. One thought we could leverage technology and apply mission of the Atlantic Media–owned business news website is to nd ways a for-prot model to connect people of color to that should for quality journalism to prosper online. opportunities they wouldn’t have been exposed to.” In addition to co-founding Quartz with a former boss at the Journal, Kevin Braswell and Williams quit their jobs in 2014, have existed Delaney, Seward has outlined the product and editorial vision for the site’s got seed funding from Y Combinator and soon email newsletters and mobile app, which has been downloaded 1 million counted Andreessen Horowitz and Magic Johnson decades ago” times. Last year it nearly doubled its ad revenue. is year ad revenue for both among their investors. Jopwell launched in 2015. the newsletters and the app are expected to grow by 100%. He has also worked Jopwell uses algorithms to match black, Latino/Hispanic and Native on augmented-reality features that can be used by reporters and advertisers, American applicants with job openings, and attracts candidates through and launched a bot studio to experiment with AI-imbued talking programs in-person events and a career-advice website. Now about 85 companies, as a platform for journalism. including Facebook, Pzer, Pinterest and Verizon, pay Jopwell’s annual sub- “I’ve gravitated toward trying to build new experiences that are journal- scription fee. Aer raising $7.5 million in September, Jopwell began enlisting istic rst and foremost,” Seward said. “ere’s something deeply gratifying smaller businesses as well. “is is a thing that should have existed decades about putting something out into the world and seeing people use it for the ago,” Braswell said. — MATTHEW FLAMM rst time.” — M.F.

30 | CRAIN’S NEW YORK BUSINESS | MARCH 26, 2018

P030_CN_20180326.indd 30 3/22/18 7:54 PM TO PLACE A CLASSIFIED AD, CALL 1 212-210-0189 OR EMAIL [email protected]

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NOTICE OF FORMATION of Wollman Notice of Qualification of BROOKFIELD NOTICE OF FORMATION OF Principal-Predictive and Prescriptive Consultants LLC. Articles of Organiza- STRATEGIC REAL ESTATE PARTNERS III- ChampionsEdge, LLC. Articles of Or- tion filed with the Secretary of State of A L.P. Appl. for Auth. filed with Secy. of ganization filed with the Secretary of Analytics needed by Verizon in New York, New York (SSNY) on December State of NY (SSNY) on 02/14/18. Of- State of NY (SSNY) on 2/16/18. Of- NY. Write precise and detailed require- 15th,2017. Location: Richmond Coun- fice location: NY County. LP formed in fice location: New York County. SSNY ty. SSNY designated as agent for serv- Delaware (DE) on 07/11/17. Princ. of- has been designated as agent upon ments for complex data sets from IT for fice of LP: Brookfield Place, 250 Vesey whom process against it may be ice of process on LLC. SSNY shall mail use in analysis. 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SSNY designated as agent of LP is: C/O HARUMI URATA-THOMPSON fice location: NY County. SSNY desig- 19808. Cert. of Form. filed with Jeffrey upon whom process against it may be 200 WEST 54TH ST., APT. 7 NEW nated as agent of LLC upon whom proc- W. Bullock, Townsend Bldg., Federal St., served. SSNY shall mail process to the YORK, NEW YORK 10019. The princi- ess against it may be served. SSNY #4, Dover, DE 19901. Purpose: Any law- Partnership, 150 E. 52nd St., 29th Fl., pal business address of the LLC is: C shall mail process to c/o Royalton Capi- ful activity NY, NY 10022. The regd. agent of the /O HARUMI URATA-THOMPSON 200 tal, LLC, 18 E. 48th St., 19th Fl., NY, company upon whom and at which proc- WEST 54TH ST., APT. 7 NEW YORK, NY 10017. Purpose: Any lawful activity. ess against the company can be served Notice of Formation of PAUL ARNHOLD NEW YORK 10019. Purpose: any law- is Matthew Pinz, c/o Pinz Capital Man- GLASS, LLC Arts. of Org. filed with ful act or activity PARKER MARTIN VENTURES LLC filed agement, LP, 150 E. 52nd St., 29th Secy. of State of NY (SSNY) on 03/ Arts. of Org. with the NY Sect’y of Fl., NY, NY 10022. Name and addr. of 06/18. Office location: NY County. State (SSNY) on 2/5/2018. Office lo- Notice of Qualification of SOVEREIGN each general partner are available from Princ. office of LLC: 500 W. 21st St., cated in NY County. SSNY has been VALUE-ADD & INCOME STRATEGY, LLC SSNY. DE addr. of LP: 251 Little Falls #4A, NY, NY 10011. SSNY designated designated as agent of the LLC upon Appl. for Auth. filed with Secy. of State Dr., Wilmington, DE 19808. Cert. of LP as agent of LLC upon whom process whom process against it may be of NY (SSNY) on 02/21/18. Office lo- filed with Secy. of State of the State of against it may be served. SSNY shall served. SSNY shall mail process to: cation: NY County. LLC formed in Dela- DE, 401 Federal St., Dover, DE 19901. mail process to Paul Arnhold at the 176 E. 71st St. Apt 10B, NY NY ware (DE) on 02/01/18. SSNY desig- Purpose: Any lawful activity. princ. office of the LLC. Purpose: Any 10021. Purpose: any lawful act. lawful activity. nated as agent of LLC upon whom process against it may be served. Formation of First Tracks Management, SSNY shall mail process to the LLC, c Block Party Films LLC. Art. of Org. filed LLC filed with the Secy. of State of NY Arts. of Org. of 74 Beach Road, LLC /o Sovereign Partners, LLC, 747 Third with the SSNY on 01/16/18. Office: (SSNY) on 1/10/18. Office loc.: NY filed with SSNY on 1/2/18. Office in Ave., 37th Fl., NY, NY 10017. DE New York County. SSNY designated as County. SSNY designated as agent of NY County. SSNY is LLC’s agent to re- addr. of LLC: 251 Little Falls Dr., Wil- agent of the LLC upon whom process LLC upon whom process against it may ceive process, will mail to WeWork c/o mington, DE 19808. Cert. of Form. against it may be served. SSNY shall be served. The address SSNY shall Pale Horse Realty, LLC, 85 Broad filed with DE Secy. of State, 401 Fed- mail copy of process to the LLC, 140 W mail process to 750 Third Ave., 33rd Street, New York NY 10004. General eral St., Ste. 4, Dover, DE 19901. 70th St, Apt 3R, New York, NY 10023. Fl., New York, NY 10017. Purpose: purpose. Purpose: Any lawful activity . Purpose: Any lawful purpose. Any lawful activity.

MARCH 26, 2018 | CRAIN’S NEW YORK BUSINESS | 31

P031-32_CN_20180326.indd 31 3/23/2018 11:07:52 AM TO PLACE A CLASSIFIED AD, CALL 1 212-210-0189 OR EMAIL [email protected]

PUBLIC & LEGAL NOTICES

NOTICE OF FORMATION of JOEL J. BA- Notice of formation of limited liability Notice of formation of HEALTH POINTE Notice of Formation of FP NEW CITY LLC UER, M.D. PLLC. Articles of Organiza- company (LLC). Name: 529, LLC. Arti- OF NEW YORK, LLC Arts. of Org. filed Arts. of Org. filed with Secy. of State of tion were filed with the Secretary of cles of Organization filed with Secretary with the NY Sect’y of State (SSNY) on NY (SSNY) on 01/31/18. Office location: State of New York (SSNY) on 1/ of State of New York (SSNY) on 11/ 1/30/2018. Office located in NY Coun- NY County. Princ. office of LLC: 270 12/2018. Office location: New York 03/2017. NY office location: New York ty. SSNY has been designated as Madison Ave., Ste. 1801, NY, NY County. SSNY has been designated as County. SSNY has been designated as agent of the LLC upon whom process 10016. SSNY designated as agent of agent of the LLC upon whom process agent of the LLC upon whom process against it may be served. SSNY shall LLC upon whom process against it may against it may be served. SSNY shall against it may be served. The post of- mail process to: c/o Independent Living be served. SSNY shall mail process to mail a copy of any process to the LLC c fice address to which the SSNY shall Systems, LLC, 810 7th Ave, NY, NY the LLC at the addr. of its princ. office. /o Levy, Stopol & Camelo, LLP, 1425 mail a copy of any process against the 10019. Purpose: any lawful act. Purpose: Any lawful activity. RXR Plaza, Uniondale, NY 11556-1425. LLC served upon him/her is Cayla Purpose: For any lawful purpose. O’Connell, 263 Ninth Avenue 7D New York, NY 10001. Purpose/character of Notice of Qualification of ElliptiCurve Notice of Qualification of EMERGING Notice of Qualification of APOLLO HD LLC: Any Lawful Purpose. Capital Management LP Appl. for Auth. VARIANT PARTNERS A LP Appl. for MANAGEMENT, L.P.Appl. for Auth. filed filed with Secy. of State of NY (SSNY) Auth. filed with Secy. of State of NY with Secy. of State of NY (SSNY) on Notice of Qualification of CS ADJACENT on 01/09/18. Office location: NY Coun- (SSNY) on 02/16/18. Office location: 02/09/18. Office location: NY County. INVESTMENT PARTNERS GP, LLC ty. LP formed in Delaware (DE) on 01/ NY County. LP formed in Delaware (DE) LP formed in Delaware (DE) on Appl. for Auth. filed with Secy. of State 04/18. Princ. office of LP: 135 E. 57th on 02/12/18. Princ. office of LP: 3 Co- 11/27/17. Duration of LP is Perpetual. of NY (SSNY) on 03/02/18. Office loca- St., 8th Fl., NY, NY 10022. Duration of lumbus Circle, 15th Fl., NY, NY 10019. SSNY designated as agent of LP upon tion: NY County. LP formed in Delaware LP is Perpetual. SSNY designated as Duration of LP is Perpetual. SSNY desig- whom process against it may be (DE) on 02/09/18. Duration of LP is agent of LP upon whom process nated as agent of LP upon whom proc- served. SSNY shall mail process to c/o Perpetual. SSNY designated as agent against it may be served. SSNY shall ess against it may be served. SSNY Corporation Service Co. (CSC), 80 of LP upon whom process against it mail process to Attn: Stephen L. shall mail process to Attn: Santiago State St., Albany, NY 12207-2543. may be served. SSNY shall mail proc- Moskowitz, 225 E. 63rd St., Apt. 7C, Jariton at the princ. office of the LP. Name and addr. of each general part- ess to c/o CapitalSpring, 575 Lexing- NY, NY 10065. Name and addr. of Name and addr. of each general partner are available from SSNY. DE addr. ton Ave., NY, NY 10022. Name and each general partner are available from ner are available from SSNY. DE addr. of LP: c/o CSC, 251 Little Falls Dr., Wil- addr. of each general partner are availa- SSNY. DE addr. of LP: c/o Corporation of LP: c/o Corporation Service Co., 251 mington, DE 19808. Cert. of LP filed ble from SSNY. DE addr. of LP: Corpora- Service Co., 251 Little Falls Dr., Wil- Little Falls Dr., Wilmington, DE 19808. with The Secy. of State of the State of tion Service Co., 251 Little Falls Dr., mington, DE 19808. Cert. of LP filed Cert. of LP filed with Secy. of State of DE, Dept. of State, Div. of Corps., John Wilmington, DE 19808. Cert. of LP filed with Secy. of State of the State of DE, the State of DE, Div. of Corps., John G. G. Townsend Bldg., 401 Federal St., with Secy. of State, State of DE, Dept. Div. of Corps., John G. Townsend Bldg., Townsend Bldg., Federal & Duke of Ste. 4, Dover, DE 19901. Purpose: of State, Townsend Bldg., Dover, DE Federal & Duke of York Sts., Dover, DE York Sts., Dover, DE 19901. Purpose: Any lawful activity. 19901. Purpose: Any lawful activity. 19901. Purpose: Any lawful activity. Any lawful activity.

32 | CRAIN’S NEW YORK BUSINESS | MARCH 26, 2018

P031-32_CN_20180326.indd 32 3/23/2018 11:07:59 AM SNAPS

The future of the arts Heather Headley, Tony- and Grammy Award–winning singer, entertained guests March 7 at the Lincoln Center Education and Community Engagement Celebration. e gala, held in Jazz at Lincoln Center’s Frederick P. Rose Hall, raised $875,000 to support free and low-cost tickets to performances throughout the boroughs, special outings for veterans, original content for children on the autism spectrum and teaching-artist programs in school districts that are most in need.

Gala honoree Christopher Williams, Russell Granet, executive vice president of Lincoln Center education co-founder of e Williams Capital and community engagement; event honoree Janice Savin Williams, Group, with Katherine Farley, co-founder of e Williams Capital Group; and Lincoln Center trustee chairwoman of Lincoln Center. Anne Unterberg at the party.

Supporting Feeding those in their golden age performing youth e Tada Youth eater honored actress and singer Leslie Uggams and director, choreographer and actor Tommy Tune Citymeals on Wheels held at its annual gala March 5. its 21st annual Sunday e multiple Tony Award– Supper on March 11. e winning artists both per- nonprot raised $850,000 to formed for 200 guests. prepare and deliver meals to the city’s homebound elderly. Attendees included Al Roker, weatherman and Today anchor, and journalist Tamron Hall, who served as master of ceremonies.

Janine Nina Trevens, co-founder and producing artistic director of Tada, and Joanna Greer, associate artistic director and resident choreo grapher for the theater, during the event at Tribeca 360°. It raised $141,000.

City Council Speaker Corey Johnson; Beth Shapiro, executive director of Citymeals on Wheels; and chef Daniel Boulud, co-president of the charity’s board, during the event, held at the restaurant Daniel.

DIA DIPASUPIL/GETTY IMAGES FOR LINCOLN CENTER, ERIC VITALE PHOTOGRAPHY, CHAD DAVID KRAUS CHAD DAVID PHOTOGRAPHY, IMAGES FOR LINCOLN CENTER, ERIC VITALE DIA DIPASUPIL/GETTY SEE MORE OF THIS WEEK’S SNAPS AT CRAINSNEWYORK.COM/SNAPS. GET YOUR GALA IN SNAPS. EMAIL [email protected].

MARCH 26, 2018 | CRAIN’S NEW YORK BUSINESS | 33

P033_CN_20180326.indd 33 3/23/18 10:44 AM FOR THE RECORD*

NEW IN TOWN Korean and French avors STOCK EXCHANGES Chapter 11 bankruptcy pro- REAL ESTATE brokered for the tenant. to his reopened restau- tection March 12. e ling e landlord, JEMB Realty ■ Emre Arolat Architecture rant at the Holiday Inn in ■ JetBlue Airways (JBLU) cites estimated assets of $0 RETAIL Corp., was represented 199 Lafayette St. Downtown Brooklyn. e Alexander Chatkewitz, to $50,000 and liabilities of ■ JPMorgan Chase agreed in-house. e asking rent e Istanbul-based rm new menu oers fusion of vice president and chief $100,001 to $500,000. e to take 24,000 square feet was not disclosed. debuted its rst U.S. a dierent order—think accounting ocer, sold creditors with the largest at 390 Madison Ave. e oce, in SoHo. e kimchi bouillabaisse. 3,000 shares of common unsecured claims are Chase bank plans to use the ■ Littler renewed its award-winning studio is stock for $22.58 per share USA Bankruptcy Depart- ground oor for its retail 34,709-square-foot lease planning to expand its ■ Grain House March 13 in a transaction ment, owed $30,000, and location in the 32-story at 900 Third Ave. e U.S. client base. 929 Amsterdam Ave. worth $67,752. He now Chase Bank Credit Cards, building. e asking rent employment and labor law Beichen Hu, who got his holds 3,096 shares. owed $7,000. was from $87 to $125 per rm plans to extend its ■ GrandLo Café start selling takeout food square foot. e landlord, lease by 12 years and con- 178 Broome St. to Stony Brook University ■ Foot Locker (FL-N) ■ Manhattan Jeep L&L Holding Co., was tinue to occupy the entire is Lower East Side coee students, many of whom Lewis Kimble, executive Chrysler Dodge represented in-house and seventh and eighth oors shop is fueled by a non- hailed from mainland vice president and CEO of 678 11th Ave. also handled the deal for of the 36-story building. prot that operates a senior China, went on to open a international, sold 11,043 e car dealership led for the tenant. e asking rent was $72 center in the same space. critically acclaimed Sichuan shares of common stock Chapter 11 bankruptcy proper square foot. CBRE e café is dedicated to cre- spot in Queens. His second for $42.71 per share March tection March 9. e ling ■ Korean karaoke place represented the tenant. ating career pathways for eatery, on the Upper West 12 in a transaction worth cites estimated assets and 36 H&Y Duet signed a e landlord, Paramount 16- to 24-year-olds through Side, is a 20-seater that $471,646. He now holds liabilities of $1,000,001 to 7,565-square-foot lease at Group, was represented by employment and on-the- serves many of the same 18,649 shares. $10 million. e creditors 65 W. 36th St. It is unclear an in-house team. job training opportunities. dishes found in Littleneck. with the largest unsecured when it plans to open its ■ L3 Technologies (LLL-N) claims are Chrysler Capital, new location, in Mid- ■ CreditSights signed a ■ PQR ■ Mahalo Board Director omas owed $370,203; Ally Finan- town South. R&E Realty 10-year lease for 28,000 1631 Second Ave. 443 E. Ninth St. Corcoran sold 1,546 shares cial, owed $286,157; and brokered for the tenant. square feet at 2 Park Ave. Angelo Iezzi, a pizzaiolo e Queens-based Hawai- of common stock for TD Bank, owed $113,912. Winick Realty Group It is unclear if the research with his own school in ian bakery expanded into $207.40 per share March represented the landlord, rm plans to move its Rome, opened a pizzeria on the East Village, where it 13 in a transaction worth ■ Tripolis Taxi Corp. 65 W. 37. headquarters from 470 Park the Upper East Side. Diners will continue to serve fruity $320,640. He now holds 39-32 212th St., Bayside Ave. South. e starting will nd pizza quadrata desserts such as pineapple 17,207 shares. e company led for ■ Bulldozer NYC inked rent for the deal was in the roma—slices cut in squares. guava cupcakes. Chapter 11 bankruptcy a ve-year deal for 5,200 mid-$60s per square foot. protection March 9. e square feet at 135 W. 52nd Savills Studley represented ■ Turkuaz BANKRUPTCIES ling cites estimated St. e hospitality group the tenant. Cushman & MOVES AND EXPANSIONS 255 W. 55th St. assets and liabilities of plans to open an Italian Wakeeld represented the e popular Turkish restau- ■ Benjy’s Kosher Pizza & $500,001 to $1 million. e restaurant at the base of the landlord, Morgan Stanley ■ Brasserie Séoul rant on the Upper West Dairy Restaurant Inc. creditor with the largest 109-unit condominium and Real Estate. 300 Schermerhorn St., Side, which closed last year d/b/a Benjy’s unsecured claim is Nissan oce building. e asking Brooklyn aer an owner-landlord dis- 72-72 Main St., Flushing Motor Acceptance Corp., rent was $175 per square ■ Kepos Capital inked a Chef Sung Park brings pute, reopened in Midtown. e restaurant led for owed $1,130. foot. Winick Realty Group 10-year deal for 20,000 represented the tenant. e square feet at 11 Times owner, Okada & Co., was Square. e investment represented in-house. rm plans to move from 620 Eighth Ave. e asking COMMERCIAL rent was not disclosed. JLL ■ Omnicom Group brokered for the landlord, signed a deal to extend SJP Properties. CBRE rep- its 288,000-square-foot resented the tenant. lease at 195 Broadway. e advertising conglom- ■ Knotel signed on for erate plans to stay at the 12,683 square feet at 224 29-story building for 15 W. 30th St. e oce- more years. e landlord, space provider plans to L&L Holding Co., was move in when the space YANKEES represented in-house. Feld is built out, although it’s Realty Group brokered for unclear when construction the tenant. e asking rent will be nished. e asking was not disclosed. rent for the 10-year deal was $52 per square foot. PREMIUM ■ FXCollaborative signed ABS Partners Real Estate a 15-year lease for 40,000 brokered the deal for the square feet at 1 Willoughby landlord, Beijing Capital Square, Brooklyn. e Development Holding, also architecture rm plans to known as Beijing Shokai occupy the seventh through Group. e tenant was ninth oors. Andrew represented by Mirador Weiss Signature Partners Real Estate. ■ UNRIVALED ACCESS, UNPARALLELED SERVICE GET YOUR NEWS ON THE RECORD * To submit company openings, moves or real estate LEGENDS SUITE • LEGENDS PREMIER • CHAMPIONS SUITE deals, or to receive further information, email FTR@ CrainsNewYork.com. DELTA SKY360˚ SUITE • FORD FIELD MVP CLUB SEATS • JIM BEAM SUITE For the Record is a listing to help businesspeople in New York nd opportunities, potential new clients FOR MORE INFORMATION ON PREMIUM SEASON TICKETS and updates on customers. Bankruptcy lings from (718) 508-3955 the eastern and southern districts of New York are listed alphabetically. Stock transactions are insider [email protected] transactions at New York companies obtained from Thomson Reuters and listed by size. Real estate listings WWW.YANKEES.COM/PREMIUM are in order of square footage.

34 | CRAIN’S NEW YORK BUSINESS | MARCH 26, 2018

P034_CN_20180326.indd 34 3/23/18 10:24 AM PHOTO FINISH

Growth industry ission Chinese grows its own mushrooms in its Lower East Side restaurant—without doing any work. e eatery’s sta does Mnot have to add water or worry about sunlight. ose tasks are done remotely by Smallhold, a company in Brooklyn that provides farming modules and manages growing conditions with custom tech. “It’s a passive unit as far as restaurants are concerned,” said Adam DeMartino, co-founder and COO of Smallhold. “We control the humidity, carbon dioxide, temperature and other parameters in the minifarms through our web interface. So a week a er a bag of mushrooms at the fruiting stage is put into the modules, restaurants get fresh produce ready to be harvested and eaten.” Smallhold’s customizable minifarms start at $3,000 for a 6-foot-tall unit that’s 2 feet wide and 2 feet deep. e minifarms produce 20 to 30 pounds of mushrooms per week. “Not every restaurant in New York City has the space to do something like this, but there’s value in having customers see their food being grown fresh,” said DeMartino, who also is setting up minifarms at Whole Foods stores in Gowanus and Bridgewater, N.J. “Local produce is more desired now, and mushrooms are in demand as more people are health-conscious and turning vegan. at demand is more than we can handle right now.” — GERALD SCHIFMAN BUCK ENNIS

MARCH 26, 2018 | CRAIN’S NEW YORK BUSINESS | 35

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