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INSIDE The most bankable TOP STORIES star in Meet the L.A. firm Big Apple that keeps buying ssportst up NYC real estate ® PAGE 3 PAGE 3
VOL. XXVII, NO. 3 WWW.CRAINSNEWYORK.COM JANUARY 17-23, 2011 PRICE: $3.00 Hudson City to hail its new ‘Taxi of Tomorrow’ Yards tries any day now to tempt PAGE 2 The real reason a tenant taxpayers had to bail out Citigroup Related’s finally ready IN THE MARKETS, PAGE 4 to build fab new hood. If Bob Dylan to sing only it had an occupant. for Simon & Schuster BY THERESA AGOVINO in major book deal ANOTHER TRY: Restaurateur IT’S BEEN AN INCREDIBLY hectic three NEW YORK, NEW YORK, P. 6 Donatella Arpaia has teamed up years for The Related Companies as it with management laid the groundwork for developing the expert Ron giant Hudson rail yards project. The BUSINESS LIVES Brannon. company announced and then amend- ed the timing of its deal to lease the 26- acre site,scrambled to find a new finan- cial partner after Goldman Sachs dropped out, and won a crucial rezon- ing for a portion of the parcel. “All of the hairiness of this transac- tion has been removed,” said Related Hudson Yards President Jay Cross. With that accomplished, Mr. Cross is calling 2011 “the year of the tenant.” So he hopes. Amid the still-fragile economic re- covery, Related needs to find a compa- ny willing to commit to occupying at GOTHAM GIGS See HUDSON YARDS on Page 25 She makes history come alive P .. 27 ● ANNE FISHER on the art of business P .. 27 karjean levinekarjean iPhone deal ● MOVERS & SHAKERS Meetup co-founder says it’s a great time for tech has Street in New York P .. 28 ● GAEL GREENE admires … on hold Beauty & Essex P .. 30 Donatella’s new guy After two breakups with chefs, restaurant Sexy device may not INDEX offset Verizon’s slow THE INSIDER ______8 star partners with a former Wall Streeter growth, high costs SMALL BUSINESS ______9
NEIGHBORHOOD JOURNAL ______12 “I’m very cautious now,” she said in an interview BY LISA FICKENSCHER BY MATTHEW FLAMM FOR THE RECORD ______22 at her newest restaurant, Donatella. “I think I ex- panded too quickly and right when things were CLASSIFIEDS ______23 IT’S HARD TO IMAGINE that glamorous restaurateur falling apart in the economy.” VERIZON HAS SPENT YEARS building its EXECUTIVE MOVES ______27 Donatella Arpaia, a local celebrity and media star, Last year, she was forced to close Anthos, a cele- reputation as the Volvo of cell phone THE WEEK AHEAD ______30 ever doubts her own abilities. But after a rough year, brated restaurant she owned with chef Michael Psi- carriers—the one with the most de- THE WEEK ON THE WEB ______31 in which her second high-profile business partner- lakis, with whom she had the falling-out. She was pendable network coverage. But next The New York Times CHEAT SHEET ______31 ship with a chef unraveled,Ms.Arpaia,38,said she’s dealt another blow when rated month, when it becomes only the sec- been humbled. See DONATELLA on Page 26 ond domestic company to carry Apple’s iPhone, the descendant of Nynex and Bell Atlantic will finally add sex appeal REPORT REAL ESTATE to its résumé. “Verizon has good quality,but it had Tenants stuff in the staff. Midtown nothing people talked about,”said inde- ELECTRONIC EDITION pendent telecom analyst Jeff Kagan.“[In south’s moment. Top property sales. this business],it’s all about the iPhone.” PAGE 13 But as hot as the iPhone is, and as NEWSPAPER See VERIZON on Page 4 20110117-NEWS--0002,0003-NAT-CCI-CN_-- 1/14/2011 8:00 PM Page 1
Mayor Michael Bloomberg is expect- IN BRIEF ed to approve a winner soon for the Bloomberg to hail 10-year exclusive contract, and the hope HIGH-END FURNISHINGS PURVEYOR is to have the new cab cruising the streets BRUNSCHWIG & FILS HAS FILED FOR CHAPTER as soon as the third quarter of 2013—a 11 bankruptcy protection. Brunschwig, which capstone to his legacy. But city officials is based in North White Plains, N.Y., sells winning taxi design could also determine that none of the en- fabrics, upholstered furniture and table tries measures up, scrap the Taxi of collections. It listed more than 200 creditors. Tomorrow altogether and stay with mul- As part of a restructuring agreement, the 111- tiple models. year-old company has agreed to be bought by Final bids are in. Which says ‘Gotham’? “People involved don’t have a clue as to Kravet of Syosset, L.I., a privately held which way it’s going to go,” says one per- distributor of fabrics and home furnishings. dress concerns about their designs for the son familiar with the deliberations. The deal is subject to a competitive-bid BY JEREMY SMERD Taxi of Tomorrow, which must be durable Karsan has wowed officials with its process. Brunschwig does not plan to close any enough to last 150,000 pot- design, which replaces the shotgun of its 22 showrooms, which include a location THE COMPETITION to build a single taxi holed miles but also seat with a wheelchair bay at Third Avenue between East 58th and East model for New York entered the home- serve as a symbol of and brings back the 59th streets. “The restructuring is a business stretch last week when the remaining three Gotham. jump seat last seen in decision that will not affect the quality of our contestants submitted their final propos- the Checker cab. products, or present and future orders,” als. Since being announced in November, The car has been Brunschwig CEO Olivier Peardon said in a the finalists—Ford, Nissan and Turkey’s embraced by a statement. The company has assets of $10.9 Karsan—have been meeting with Taxi & vocal proponent million and debts of $18.4 million, according Limousine Commission officials to ad- of making the to its bankruptcy filing. city’s 13,000 taxis wheelchair-ac- CITY HALL IS STILL TALLYING CLEANUP COSTS TAXIS OF TOMORROW: cessible and in line FOR THE LAST TWO MAJOR SNOWSTORMS, with the Americans but the Christmas blizzard exhausted the city’s HOW THEY COMPARE with Disabilities Act. $38.5 million snow budget for this fiscal year, “I want a purpose-built, a mayoral spokesman said. The city has ADA-compliant vehicle,” exceeded that budget in five of the past six KARSAN Model V1 In production No said Democratic Assem- USA Engine 1.6 liter, four cylinder, Base price Unknown years. Last year, it budgeted $38.3 million and 115 horsepower Pro It has a unique and spacious blyman Micah Kellner. spent $63.5 million. The allotment, based on a Fuel Gasoline; can be converted to interior “And there’s only one vehi- formula in the City Charter that averages compressed natural gas or electric Con Karsan has no prototype and cle that meets that stan- overtime costs for the last five years of snow City fuel economy 30 mpg has never made vehicles for the dard: Karsan’s.” and ice removal, is almost certain to increase Legroom 39 to 62 inches American market next year. Ⅲ Wheelchair-accessible Yes Prototype is MIA THE PROBLEM is that the third-party manufacturer NISSAN NORTH AMERICA INC. Model NV200 In production In Europe and for Peugeot hasn’t yet manu- Engine 1.6 liter, four cylinder, Japan BY THE NUMBERS 106 horsepower Base price About $24,000 factured a prototype for its Fuel Gasoline; can be converted Pro Only existing model that cab. Weekly shift of the city’s economy to electric provides conversion to electric Ford is the favorite of City fuel economy 30 mpg (est.) Con City has no recharging fleet owners, who have em- UP ON THE DOCKS A surge in exports to a two- Legroom 41 inches (est.) infrastructure for electric vehicles braced the automaker’s year high helped spur growth in manufacturing, é which bodes well for future job growth and a Wheelchair-accessible No Transit Connect as the suc- stronger economy. cessor to its familiar Crown Victoria. But because the FORD MOTOR CO. Model Transit Connect In production Yes van is more workhorse than 11.5K +15.2% 2.1M Engine 2.0 liter, four cylinder, Base price About $22,000 136 horsepower Pro Ford is battle-tested in NYC show pony, observers won- AVG. TOTAL CHANGE IN NYC COMMENTS der if it can become a wor- snow-shoveling GAS PRICE vs. POSTED on Fuel Gasoline; can be converted and adored by many fleet owners injuries reported a year ago; now Gawker.com to compressed natural gas Con Considered least attractive thy icon. annually $3.18 a gallon during 2010 City fuel economy 22 mpg and less iconic, because it’s used Environmental sustain- Source: American Source: Energy Source: Gawker Legroom 41.5 inches as a taxi in other cities ability is also a factor in the Journal of Information Media Wheelchair-accessible No Emergency Administration judging.That gives an edge Medicine to Nissan, which has of- Sources: Karsan, Nissan, Ford, Automotive News fered a modified version of DOWN IS UP After rising throughout the recession, the See CITY on Page 26 amount of vacant office space in Manhattan at last started to decline in the second half of last year. Ski chic hits stores as skiers
Traffic at U.S. ski resorts was up 4.2% president of style-forecasting company Resorts, city retailers last season, compared with the year-earli- Tobe Report. gear up for heavier er period, according to the National Ski Not long ago, the sport was in a down- Source: Cushman & Wakefield Inc. Areas Association, and attendance is up hill decline in the Northeast. Flatiron dis- traffic this snowy season 8.5% over the past three years. Thanks to trict fixture Princeton Ski Shop shuttered ADDICTED TO NUMBERS? all the fresh powder coming in this year, three years ago. And Vermont-based GET A DAILY DOSE AT @STATSANDTHECITY many resorts are anticipating breakout vis- Stratton Mountain Ski Resort was nearly BY ADRIANNE PASQUARELLI itor levels. put up for auction last year as its private eq- uity owner, Fortress Investment Group, CORRECTION NEW YORKERS have been grumbling about Alpine looks, in an elevator near you scrambled for cash. The Beatrice takes up the top 30 floors of the Chelsea building climbing over snowdrifts generated by re- NOW RETAILERS are launching first-time What a difference a few feet of powder that houses Kimpton’s Eventi hotel on the lower 25 floors. This cent blizzards,but all those white flakes are Manhattan shops to take advantage of the make.Skiers and instructors making tracks fact was unclear in Dec. 13 article “Rentals’ extreme extras.” a blessing for local ski resorts and parka re- ski trend. Luxury outerwear brand Mon- down the mountains of Stratton over the tailers now laughing all the way to the cler recently opened a boutique in SoHo, holidays reported a record number of visi- vol. xxvii, no. 3, january 17, 2011—Crain’s New York Business (issn snowbank. as did Icebreaker, a New Zealand-based tors. At Sugarbush, also in Vermont, the 8756-789x) is published weekly, except for double issues the weeks of July Fourth, Labor Day and Christmas, by Crain Communications “It’s like money falling out of the sky,” purveyor of cold-weather apparel. Many numbers already are surpassing year-earli- Inc., 711 Third Ave., New York, NY 10017. Periodicals postage paid at said Eric Friedman, marketing director at such shops boast Alpine looks that can not er levels: The ski center pulled in 7,500 New York, N.Y., and additional mailing offices. Postmaster: Send Mad River Glen, a mountain in Vermont. only climb every mountain but also survive skiers each day during the Christmas hol- address changes to: Crain’s New York Business, Circulation Depart- ment, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber “When we get snow in the big metro areas, any midtown slush pond. iday weekend, a number typically not seen service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a copy, $59.79 it gets people thinking about skiing.” “The whole idea of the après-ski chalet until February or even later in the season. one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2011 by Crain Communications Inc. The Big Apple is no ski town, but hit- Swiss Miss—that whole look—has moved “We are seeing some pretty strong All rights reserved. ting the slopes is back in vogue—or at least into the fashion realm, and it’s gone viral,” numbers this year,” said Candice White, looking like you’re just off the moguls is. said Catherine Moellering, executive vice Sugarbush’s vice president of marketing.
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Knicks’ fast break L.A.firm
players, has made the hits NY Team’s hot streak Knicks relevant again. means rebound The empty seats of past seasons are now at a trot filled. Ratings on the for Madison MSG Network are skyrocketing. And the Snaps up half a dozen Square Garden Knicks appear headed to the playoffs for the distressed properties BY DANIEL MASSEY first time since 2004, which would add “sev- in just the last year WHEN POPE BENEDICT XVI visited eral million dollars” to New York in 2008, David Letter- the Garden’s bottom BY AMANDA FUNG man joked that after celebrating line for each round Mass at Yankee Stadium, the Holy played, analysts say. LOS ANGELES-BASED CIM Group is Father would head to Madison on a tear in the Big Apple, collect- Square Garden and administer “last Perfect timing ing distressed properties at hefty rites for the Knicks.” THE REBOUND is well- discounts. In its latest deal, the firm On Thursday, Knicks center timed for MSG, bought the debt on a development Amar’e Stoudemire appeared on which is in the middle site at 140 Sixth Ave., according to the Late Show with David Letter- of an estimated $850 sources. man—not as the butt of any joke, million renovation That is its sixth transaction here but as the 6-foot-10-inch, 240- that is expected to since CIM entered the New York pound pillar of a team off to its best transform the arena’s market a year ago. In its debut pur- start since the 2001-2002 season. revenue-generating chase, the firm paid $305 million for “It’s great to have you in town,” Mr. capacity. “You build the defaulted debt on what was the Letterman said.“All of a sudden,we the business to per- city’s most valuable vacant lot—the can’t make jokes about the Knicks form, regardless of former site of the Drake Hotel, on anymore.” won-loss record, but Park Avenue in the heart of midtown. Indeed, after a lost decade, the when the won-loss “They are savvy investors mak- Knicks are back, riding Mr. record is what it is, it’s ing a big bet on Manhattan,” said Stoudemire’s high-flying perform- a nice assist,” said Dan Fasulo, a managing director at ance. A player with unusual quick- Hank Ratner, the Real Capital Analytics. “They’ve ness for someone his size, he leads Garden’s chief execu- acquired stakes in premiere assets.” the NBA in field goals per game tive. “It puts more and is second in scoring. The free wind behind the sails.” Kingpin connections ADDED VALUE: HEADED BY RICHARD RESSLER agent from Phoenix also set a team As the Knicks have Amar’e Stoudemire ,broth- record last month with nine con- won—they were 22- of the Knicks has er-in-law of private equity kingpin secutive 30-point games. Fans rou- 16 through the end of arguably become the Leon Black, 17-year-old CIM eyed tinely serenade him with chants of a West Coast trip last most marketable New York real estate for nearly a “M-V-P,”and their votes have him week—the Garden’s sports star in the city. decade,according to people familiar on pace to be New York’s first All- stock has soared. The with the firm.It recently established Star starter since Patrick Ewing in price of MSG shares 1992.The 28-year-old is primed to are up 15% since the be a star off the court as well, with National Basketball ‘They appear
the opportunity to bring in tens of Association season newscom millions in non-basketball revenue opened on Oct. 27, to be making in the next five to seven years. trading last Friday at around $24. highest ratings on the MSG Net- Through last Wednesday, Perhaps more important, Mr. “It’s not just based on senti- work in years. That helps their ad Knicks games on the MSG Net- their mark Stoudemire,along with fellow free- ment,” David Joyce, an analyst at revenue, and that’s what tangibly work were averaging a 1.54 house- agent acquisition Raymond Felton Miller Tabak & Co., said of the translates into better stock per- hold rating (nearly 116,000 house- in New York’ and a cast of young supporting stock’s jump. “They’ve had the formance.” See THE KNICKS on Page 25
after Sept. 11, report that their ski night and to the pub,” said Lisa an office here, on Madison Avenue trips have been very popular. Thompson, Icebreaker’s U.S. presi- and in the past month has grabbed Retailers have been paying atten- dent.“It’s quite stylish—and doesn’t two troubled properties—William s hit the slopes tion. Open just four months, Mon- smell.” Beaver House, a 319-unit condo cler’s Prince Street store is already New Yorkers are wearing such conversion in the financial district, performing well, according to the ski-chic looks to more than just the and the 46-story hotel-condo “We are feeling really positive Milan-based brand, which offers pub. Puffy jackets, ’70s-style mock- Trump Soho—and bought an equi- about the 2010-11 season.” down-filled coats that cost upwards turtleneck waterproof sweaters and ty stake in 11 Madison Ave., an art- Some experts say the sport is of $1,100. Canadian womenswear fleece-lined boots are especially deco office tower. gaining speed because of changing company Lolë, which also sells win- popular these days, and most wear- CIM officials declined to be in- demographics, as teenagers and ter sports jackets, will open soon in ers seen in subways and elevators terviewed for this story. twentysomethings em- TriBeCa,and state-of-the-art ski la- clearly aren’t interested in carving up “They appear to be making their brace downhill alter- bel Spyder recently rented a down- powder on the black-diamond trails. mark in New York,” said Matthew natives such as town showroom to wholesale its Ms. Moellering linked the Parrott, a partner at the law firm snowboarding and wares. trend’s recent explosion to the fall Katten Muchin Rosenman who freestyle skiing. 2010 runway shows of design hous- worked on the Beaver House deal. These variations in- More stores in store es Dolce & Gabbana and Chanel. There, CIM bought $66 million in volve terrain parks with MEANWHILE,Icebreaker,which focus- Now, mass-market retailers such as debt at a discount from a fund con- half-pipes.Several local es on Merino wool-based activewear American Eagle are adopting the trolled by Blackstone Group and athletic shops and and outerwear, debuted its East look—the company is currently took over the 209 unsold units. group sporting com- Coast store on Wooster Street last showcasing a wool tuque-style hat panies now offer day trips month. The 17-year-old company, in its winter ads. Nifty timing to nearby mountains Hunter which reached 12-month sales of “The consumer is tired of not “THIS IS A GREAT TIME to come in and 8.5% and Windham. Paragon $100 million last March and expects being able to look fashionable [dur- pick up distressed assets,” Mr. Par- RISE in traffic at U.S. Sports in Union Square sales to double in three years,said the ing intense winter weather] and rott said. ski resorts over the and Zog Sports, a market here has been so strong it may doesn’t want to suffer,” said Ms. In the deal for 140 Sixth Ave., newscom social sports pro- open additional New York stores. Moellering. “Smart retailers are between Spring and Broome past three years grammer “Our base layers are great for ski- giving her stylish options to look streets, CIM bought a $24 million founded ing and to wear all day, to wear at great on the street.” Ⅲ See L.A. FIRM on Page 25
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Verizon roars, Street yawns IN THE MARKETS Continued from Page 1 $600 price,which could add up to $5 strategically,” wrote Sanford C. much as Verizon’s news dominated billion if sales estimates of 13 mil- Bernstein senior analyst Craig Mof- Aaron Elstein business coverage last week, Wall lion units this year prove correct. fett in October, when he lowered his by Street was unmoved. The share In the long term, there are con- rating to “sell.” price for Verizon Communications cerns about how little cash comes Other analysts, however, see a Inc. actually dipped a few percent- from parts of the business other than much brighter picture. Their opti- age points on the day of the an- Verizon Wireless.Verizon has spent mism is based on Verizon Wireless’ nouncement, and analysts largely some $23 billion on building FiOS, array of products,including not only maintained their “hold” ratings. but observers doubt that the compa- the iPhone but also other smart- The phone can do only so much ny will ever see a return on that invest- phones, like the Droid, and hand- for the company, which already ment—especially if more television sets designed for the company’s new trades at a premium—in part be- watchers cut the cord with their TV fourth-generation, or 4G, network. cause it has long been expected to providers. get the iPhone. Furthermore, Veri- Revenue for Verizon Communi- Tour de force zon owns just 55% of its wireless di- cations for the first nine months of “VERIZON IS SET UP for a dominant vision, through a joint venture with 2010 totaled $80 billion,a decline of year in wireless,” wrote a team of U.K.-based Vodafone Group. And 1%, while net income came to $6.8 Goldman Sachs analysts last week although the company is seeing billion,down 27%.But although the when they upgraded the company to newscom growth in its FiOS broadband and number of FiOS subscribers posted a “buy.”They expect rapid growth in video service, that hasn’t been double-digit percentage growth, service revenue to make up for its In the mood for a scary story? enough to overcome the decline in high costs ate up the profits. The spending on subsidies. its old-fashioned landlines. contribution to the bottom line all Goldman’s analysts also expect T SEEMS Vikram Pandit, the CEO of Citigroup, has a lot in “At the core, I don’t look at Veri- came from Verizon Wireless, which other parts of Verizon to become common with George Bailey, portrayed by Jimmy Stewart zon as a business with the kind of had operating income of $13.9 bil- more profitable as the costs for FiOS I in It’s a Wonderful Life. It turns out that both narrowly growth potential that would justify lion.Overall company cash flow was come down and its market penetra- a [higher rating],” said James Rat- $25.2 billion. tion grows. Chief Executive Ivan survived runs on their banks. A run on Citi? Yes,and it cliffe, a telecom analyst with Bar- Cash is an issue for Verizon, be- Seidenberg said much the same happened shortly before Thanksgiving 2008, according to a clays Capital. cause it pays out more than $5 bil- thing at a recent investor conference. chilling report last week by the inspector general of the Troubled lion a year in dividends—one of the “We feel like [2011] will be a year Asset Relief Program A plum for Apple factors that make its stock attrac- where there will be more visible ev- that shows how close to the brink THE BIG WINNER in this latest chap- tive. But to pay the dividend this idence that the leak in the boat is not Citigroup—and maybe the rest of the world—really came. ter of the iPhone saga is once again year, some analysts think, Verizon as big as the growth,” he said. likely to be Apple,whose stock price will have to reach a deal that allows Verizon Wireless will have to You’ll recall: The government morning of Monday, Nov. 24. Be- has climbed 66% in the past 12 Vodafone to share in the joint ven- make good on its promise of provid- had bailed out the nation’s banking cause Citi is a central player in the months. Verizon’s shares have risen ture’s cash flow—which could hurt ing a more reliable network for the system a few weeks earlier. But the global banking system, Federal Re- 14% in that time.AT&T,which will the stock. iPhone than its rival has.AT&T has marketplace sensed that Citi was serve Chairman Ben Bernanke feared soon lose the exclusive grip it has had Also, by some estimates, once become notorious for the spottiness still the weakling in the herd. Dur- that its failure would mean compa- on the iPhone since 2007, is up 9%. Verizon pays its 2011 dividends,not of its service. Verizon says it’s pre- ing a single week in November, its nies and governments could not pay In the short term, offering the much will be left over. The “thin pared, but some tech insiders say stock price plunged 60%. employees. Access to ATMs world- iPhone will put pressure on Verizon’s margin” appears likely to persist go- that the company could have prob- The run on Citi began in the U.S. wide would be blocked. earnings. The company will subsi- ing forward, which could “seriously lems, given that iPhone users are on the evening of Thursday,Nov.20, The government crafted a mas- dize about two-thirds of the device’s hamper Verizon’s ability to invest renowned data hogs. Ⅲ specifically in the global transaction sive bailout package, which Citi of- services division, where many of the ficials, after some griping, accepted. world’s largest corporations deposit Catastrophe avoided. cash. By the next day,Citi’s available “As we have said before,” a bank balance of funds in the division had spokesman responded last Friday, shrunk $13.8 billion, to $274.2 bil- “Citigroup was well-capitalized and lion, according to the report. liquid in the fall of 2008 but faced By then, it was clear that Citi’s uncertainty resulting from dysfunc- trading partners were unwilling to tional markets and a declining stock transact business with the company price.The government’s investment or provide it with credit because they removed that uncertainty.” had “lost confidence in Citigroup’s That’s one way to put it. The in- ability to repay,” the report said. spector general’s report contained The panic subsided Saturday but this conclusion:“While the year-plus resumed Sunday night, which was of government dependence left Citi- Monday morning in Asia. The re- group a stronger institution than it had port says the Federal Deposit Insurance been, it remained, and arguably still Corp.—alarmed that Citi couldn’t remains … too big, too interconnect- “meet its liquidity”—was on the ed and too essential to the global fi- verge of closing the institution the nancial system to be allowed to fail.”
Reserved applause ing rules gen- erally frown on
The Durst Organization a lot of high fives were slapped a bank’s hoard- is pleased to welcome around Wall Street last week when ing reserves. BuckleySandler LLP to J.P. Morgan Chase reported fourth- But with 1133 Avenue of the Americas. quarter earnings of $4.8 billion, or 47 other banks reporting results in the cents a share.There’s just one caveat. next few weeks,it must be noted that Much of that gain could be attributed their earnings should also get a big Special thanks to to the bank’s releasing $3.2 billion in boost from releasing the loan-loss re- Greg Taubin of Studley, Inc. reserves, according to CreditSights. serves they’ve built to historically who represented the tenant. Sure, the bank’s business lending high levels.Reserves at Citigroup,for appears to be picking up. Addition- instance, are more than double their ally, the reduction in reserves stems average between 1991 and 1995 as a from an improving economic cli- percentage of average loans, accord- mate, which should result in lower ing to RBC Capital Markets data.At losses from credit card loans, mort- Bank of America, reserves are nearly Ⅲ gages and other loans.And account- triple historic levels. istockphoto Member ® THE PERCENTAGE OF NEW YORK COMMERCIAL LENDERS WHO REAL ESTATE BOARD OF NEW YORK RECEIVED A RAISE in 2010, according to a survey by Executive 4% 8 Search Group. Of 101 local bankers surveyed as part of a national polling effort, 13% reported a pay increase of over 5%.
4 | Crain’s New York Business | January 17, 2011 Project1:fp template.qxd 1/13/11 12:07 PM Page 1
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7LEMJF7GJL:AFHAJFGLJ7N NEW YORK,NEW YORK edited by Valerie Block Legions of Guardian Angels APES, MURDERS AND ROBBERIES went up last year in the Big Apple. But citizens can Rrest easier knowing that crime-stopper extraordinaire Curtis Sliwa (below) is on the case.The Guardian Angels founder turned media personality has doubled the number of his red beret-clad volunteers to 154 over the past six months. He is currently training even more to patrol problem neighborhoods in the city. An eruption of violent crimes—mostly in Brooklyn, Queens and Bronx neighborhoods— started over the summer, said Mr. Sliwa. “Communities that were in relatively good shape are starting to reach out to us to develop a Guardian Angels group,” he added. Coney Island, for example, never had Guardian Angels before this summer, when a slew of murders occurred there. “They’ve had a positive impact here,” said Mathylde Frontus, co-chair of the Coney Island Coalition against Violence. Other neighborhoods getting Guardian Angels protection include Corona and Elmhurst, where gang activity has exploded. Mr. Sliwa added 16 Angels for a total of 24 in those communities. He’s also ramped up in South Ozone Park, at the urging of livery cab drivers, and he’s developing a patrol in Canarsie, as well as adding a larger presence in Washington Heights, Inwood and Harlem and the South Bronx, where he started the organization 32 years ago. “The cold and snow gives crime a respite,” he said. “But that’s only temporary.” newscom Highway S&S Have we got although if you are a doctor or a revisited a deal for you! lawyer, are you single?” ROCK LEGEND Bob Dylan has a new THE LIGHTNING SUCCESS of Making dough book deal—with his old publisher, discount sites like Groupon spurred in public service Your Final Roof! Simon & Schuster. Jodi Samuels into action. By her The house, which brought out logic, the world needed a coupon A DECADE AGO, three staffers Our Spray Polyfoam technology the singer-songwriter’s 2004 best- site that would cater to Jewish working for Brooklyn Councilman is an amazing advance in the seller Chronicles: Volume One, has consumers. It’s a joke that almost Kenneth Fisher were making about way new and existing reached a deal with literary agent writes itself, said Ms. Samuels, who $100,000—combined.Today roofs are being Andrew Wylie for six books, launched Jdeal.com in November. they’re rolling in dough, literally. according to several She threw a coming-out party for Cupcake retailer Crumbs’ $66 done. industry insiders.The the site last week. million deal to go public, books include two “If you like buying announced last week, is the latest Call us to follow-ups to [stuff ] at discounted success of the trio’s separate and find out how we’ll provide you Chronicles and a prices and then bragging unlikely migrations to the kitchen. with the last roof you’ll ever collection of riffs about it to your friends so Mia Bauer, who was legislative need! from Mr. Dylan’s they feel like schmucks for counsel for Mr. Fisher, opened radio show on paying retail, you’ve come Crumbs’ first location with her Sirius XM. to the right place,” reads one husband in 2003, two years after The deal came of the site’s taglines. term limits forced her boss from after Mr. Wylie Jdeal has already signed up his post.Today, Crumbs has 34 had spent 5,000 users and sold 40 deals, outlets. It could soon have 200. 4 Layers of Protection months trying to ranging from bagel shops to When Mr. Fisher’s bid for NO LEAKS EVER! drum up interest in the project green dry-cleaning. It allows borough president went bust, among other publishers (see merchants to tailor offerings to a Melissa Talmage, who had been Highest Wind Uplift System Crain’s, Nov. 22), despite Simon & Jewish clientele. A comedy club on making $18,000 as a constituent Available at -495psf Schuster’s insistence that it had the the Upper West Side offered aide, went to culinary school. rights to any Chronicles sequels. coupons that included an option She’s now executive chef of Sweet “Wylie’s contention was that S&S for kosher wine and dessert, for Melissa’s Cafe in Sanibel Island, A proven, totally green technology for commercial roofing didn’t own the ‘memoir,’ because Fla., where she also owns two Chronicles was ‘nonfiction stories’ pizza joints. applications will be the last roof your building ever needs. from his life and not a memoir,” Mr. Fisher’s ex-administrative And, your new roof will pay for itself in under 5 years. said the editor. But no house assistant Karen McGrath followed Full 100% non-prorated warranty. would bite because of the her sweet tooth to Brooklyn’s Riv- potential for a lawsuit. er Café, where she’s now the pas- WATER JUST CAN’T Mr. Wylie had been looking try chef. “They all wanted to make PENETRATE THE ROOF’S STRUCTURE. PERIOD! for an eight-figure offer, according some dough,” said Mr. Fisher, to another editor, who didn’t know now a land-use attorney in the CALL STEPHEN BARBUTO the deal’s final value. example, and a yoga studio offered city.“But they’re still serving the WeatherTight The agent did not respond to women-only classes.“Jdeal is very public.” Systems, Inc. 201-787-6280 an e-mail seeking comment. A simple to use,” says the website. 17 Furler Street, Totowa, NJ 07512 Simon & Schuster spokesman “You don’t have to be a rabbi or a Contributors: Erik Engquist, Lisa Ficken- declined to comment. doctor or a lawyer to figure it out— scher, Matthew Flamm, Hilary Potkewitz 6 | Crain’s New York Business | January 17, 2011 CN014183 1/12/11 3:38 PM Page 1 Client: Location: Service: Size: CLIENT SOLUTIONS We have been named preferred strategic advisor for United Technologies’ North American real estate portfolio. We share a commitment to precise execution and a vision for constant innovation, two of the key factors in a soaring success. PICTURED: A Sikorsky S-92® SAR Helicopter, manufactured by Sikorsky Aircraft Corp., a division of United Technologies. www.cushwake.com/casestudies 20110117-NEWS--0008-NAT-CCI-CN_-- 1/14/2011 7:17 PM Page 1 replacements is a tall order, especially for Mr. Walder, given the challenges he faces: The MTA’s EXPIRING LAWS Albany battle brews THE INSIDER capital plan is funded only through CONTROVERSIAL STATE LAWS of concern to business groups are set to expire this year, and the contract with the but could be renewed in the new legislative session. Among them: by Erik Engquist and Jeremy Smerd Transport Workers Union Local The personal income tax surcharge ends Dec. 31. Gov. Andrew Cuomo 100 expires early next January. opposed extending the surcharge, which could generate $5 billion in Administration officials said revenues annually. The current surcharge is 1 percentage point for those ESDC Chairman Dennis Mullen earning $200,000 or households making $300,000, making their rate hasn’t been replaced because Mr. 7.85%. Those with income of $500,000 and above are taxed at 8.97%. Cuomo is restructuring the Developers who began construction before Dec. 28, 2010, can claim organization.The governor has 421-a tax abatements. A bill passed over several candidates, would have to be introduced to including former Rep. Scott Murphy. extend the credit for future His name was floated because he is projects. The break has been a Web entrepreneur and venture widely used in hot markets, capitalist based upstate, where the including Williamsburg. Andrew Cuomo Dennis Mullen Jay Walder Chris Ward governor would like to spur the development of technology- The industrial and focused economies. commercial abatement Mr. Cuomo, who insiders say program, a successor to the industrial and commercial Guv takes his time has been more focused on putting bloomberg news his executive staff together and incentive program, provides up determining how to fill a $10 to 25 years of tax abatements for new or renovated industrial and filling top posts billion gap, did manage to make commercial buildings; it is used in the outer boroughs to spur retail one key appointment last week. construction and expires in March. Joan McDonald, commissioner of the Rent regulation expires June 15 for thousands of stabilized apartments. NDREW CUOMO has been governor for less than Connecticut Department of The Assembly wants to strengthen tenant protections. Real estate insiders three weeks, but he had been preparing for the job Economic and Community would accept an extension if the income thresholds were changed. Currently, Development, was nominated to couples who earn more than $175,000 in each of two consecutive years are since his father slept in the master bedroom of the head the Department of disqualified; some manipulate their income to get under the threshold every executive mansion. Transportation.The biggest other year. A three-year average would be better, one real estate insider said. The lengthy preamble to Mr. Cuomo’s ascension challenge for Ms. McDonald, a has made all the more perplexing his indecision regarding three former transportation executive at A the city’s Economic Development predecessors earned, and Mr. economy improves,” said one of the governor’s most significant appointments: head of the Corp. and Metro-North Railroad, Cuomo has called for more lobbyist. Metropolitan Transportation Authority, executive director of will be funding a capital budget transparency in Albany. But unlike Unable to wait, two private the Port Authority of New York & New Jersey, and chairman of that, like the MTA’s, runs out of predecessors David Paterson and Eliot schools in the city are using bonds money this year. Spitzer, he has not listed salaries in issued by Phoenix, but financing the Empire State Development Corp. press releases announcing hiring costs would be lower if the city’s Both Jay Walder, chairman and chief executive of the MTA, For Cuomo salaries, decisions. A spokesman offered to IDA could issue triple tax-free and Chris Ward, the Port Authority’s executive director, are divulge salaries upon request but bonds for them. widely supported in transportation and economic inquiry is required did not say if the press-release policy would change. development circles to continue in their roles.The governor THE GOVERNOR and his new hires Storm cloud’s silver bloomberg news ; (mullen) corbis has not signaled whether they will stay or go. Finding capable will make 5% less than their Salary freeze lining for Goldsmith won’t melt deficit FOR A MOMENT this month it seemed that Stephen Goldsmith’s FREEZING THE SALARIES of state agenda—modernizing the city’s workers is expected to save as much work force and cutting red tape— AN ABS DEAL as $400 million but won’t reduce would be torched in the firestorm the $10 billion budget deficit.The over the Christmas blizzard. But 2011-12 budget forecast already the deputy mayor for operations factors in a wage freeze for those has found a silver lining in that MEANS EVERYBODY WINS public-sector employees whose cloud: He will get to buy more of contracts expire March 31, a the high-tech toys he loves so spokesman for the Division of the much. Mr. Goldsmith’s “15-point Budget said. Seniority-based action plan” includes “step increases” are also equipping trucks with included in the state’s communications projected costs of $145.9 technology, streaming billion. live video of trouble 10 01 spots and changing 270270 10 01 Nonprofits tire contracting laws to MADISONMADISON AVEAVE OFOF THETHE make it easier for the AMERICASAMERICAS of IDA impasse bloomberg news city to hire outside help Stephen Goldsmith during an emergency. FEATURED PROPERTIES THREE YEARS AFTER the expiration of a law allowing Whistle-blowers 270 MADISON AVENUE 1001 AVENUE OF THE AMERICAS nonprofits to finance capital projects with triple tax-free bonds, blow reward 2 full 17,715 rsf floors with 4 full floors of 8,715 –11,636 rsf — a push will be made to revive it, interconnecting staircase contiguous block of 41,000 rsf according to insiders.The state law THE DEPARTMENT of Investigation 24/7 attended lobby with 6 new Building-wide modernization underway died because organized labor asked has seized $27 million from alleged passenger elevators including brand new lobby legislators to require prevailing CityTime fraudsters, but it’s unclear wages for all workers on projects whether any of the loot will go to Will build to suit for qualified tenant Will build to suit for qualified tenant funded through industrial those whom the criminal complaint development agencies. Nonprofits credits with initiating the case. For leasing information, please contact: For leasing information, please contact: and real estate interests objected, State and city laws say whistle- Douglas Regal John Gols Douglas Regal Jay Caseley saying that costs would balloon. blowers can receive up to 30% of 212-400-6077 212-400-9477 212-400-6077 212-400-6075 Negotiations stalled, and the recovered money, but claims are [email protected] [email protected] [email protected] [email protected] recession put capital projects on the typically filed before charges are back burner. But the issue “is levied. No such claims have come Ⅲ LEASING · MANAGEMENT · PROPERTY DEVELOPMENT · ADVISORY SERVICES beginning to heat up again as the to light. WE BUILD PARTNERSHIPS THAT LAST For daily political and government news, subscribe to CRAIN’S INSIDER @ www.crainsnewyork.com/insider 8 | Crain’s New York Business | January 17, 2011 20110117-NEWS--0009-NAT-CCI-CN_-- 1/13/2011 7:25 PM Page 1 SMALL BUSINESS What to give: a bonus or a raise? FEELING THE RECESSION: Laura York City doesn’t fall as fast and is websites for women, isn’t taking any ry. In December, Tufariello With money tight, canceled among the first cities to come back,” chances. Her six employees will her marketing ma- end-of-year some firms wrestle said Mr.Karnani.“Now we’re seeing each get a salary increase of about nager left for a job bonuses for companies hiring again, so you have 10% this year, far exceeding the na- with a higher salary. 2010 at with tough decisions to stay competitive.” tional average. “We’ve lost thou- Design & The average raise for 2011 will be sands of dollars in Source BY EILENE ZIMMERMAN about 2.8%, according to a survey of Above-average raises sales because of Productions. U.S. employers by Buck Consul- “WE HAD A GOOD YEAR last year, and that,” she said. roger hagadone IKE OTHERS in her indus- tants, a human resources and bene- even though we don’t know what this To afford the try, Laura Tufariello, fits consulting firm. year will bring,I know how expensive raises, Ms. Madhok is keeping close vesting in our people,” she said. president of Design & Michelle Madhok, chief execu- it is to lose talent,” she said. “I’m very tabs on company spending and cut- If hiring picks up soon,she—and Source Productions in tive of SheFinds Media, a publisher concerned about retention.” ting costs.“Instead of investing in,for other employers—may have no Manhattan,is still feeling of retail-oriented informational Ms. Madhok has reason to wor- example,Google AdWords,we’re in- choice. Lthe impact of the recession. In 2010, she canceled end-of-year bonuses for the first time in 15 years. Her com- pany, which develops and sells sus- tainable packaging, didn’t hit its rev- enue goal.When she met with her 12 employees in November to deliver the bad news,“everyone still felt they deserved a bonus,” she said. Yet for 2011,she isn’t committing to giving either bonuses or raises— at least not right away. She wants to see what the first quarter brings.“We want to start 2011 strong and revisit A Real Plan for the possibility of raises after we have those results,” she said. As small business owners in New Expanding Operations. York City move ahead on their strategic plans for 2011, some, like Ms.Tufariello, still haven’t made fi- nal decisions about how incentives such as raises and bonuses fit into their budgets. Many froze salaries and bonuses in 2010, and there’s no magic formula to use in determining when to unfreeze them—or which types of incentives will stretch a tight budget most effectively. Some experts say bonuses are best, given that the city’s economy hasn’t fully recovered.Salary increas- es are a fixed cost, whereas “bonuses are one-time payments,” noted Rick Gibbs, a senior human resources specialist at staffing firm Admin- istaff. “If the bonus rewards things that are important for the bottom line,it will be better for the business.” Keeping the best team Anne D. Shybunko-Moore EVEN IF PROFITS are down or nonex- President, GSE Dynamics, Inc. istent, businesses must compensate, and State Bank Client as their competitors do, to maintain the best team, according to Paul L. Schaye, managing director of pri- vate equity firm Chestnut Hill Part- ners. “If you lose your management team,you’ll have shorter-term prof- its but a long-term loss,” he said. Mr. Schaye recommends devot- ing 80% of a company’s incentive compensation pool to the top 15% Put Your Business in a Be er State. of performers and distributing the Every day provides new possibilities to prove dreams can be realized. remaining funds to the middle 70% of the organization, including em- State Bank supports this visionary spirit with real people and real solutions ployees who aren’t driving profits. But some experts say raises still that free your business to pursue opportunity – to imagine, to plan and have their place, especially in New York. Avi Karnani, lead strategist for expand. You’ll nd proven expertise, genuine exibility and a relationship GetRaised, a salary comparison and focus that inspires trust. More than bankers, we’re business people, negotiation tool,said a raise is vital to employee retention,because research listening, learning and responding to your needs, so you can take on shows that most employees want tomorrow. is is the power that comes from pu ing your business in a some increase in their paycheck. 516.465.2300 “Historically in recessions, New be er state. Opportunity is calling. Let’s get to work www.statebanko i.com To sign up for Crain’s SMALL BUSINESS newsletter, go to www.crainsnewyork.com/smallbiz. January 17, 2011 | Crain’s New York Business | 9 20110117-NEWS--0010-NAT-CCI-CN_-- 1/14/2011 2:09 PM Page 1 VIEWPOINT What Albany must do for city editor in chief Rance Crain publisher, vp Jill R. Kaplan HE FATE OF A $300 MILLION chunk of state closures reversed because of a public outcry. EDITORIAL money this year will say a lot about how a Mr. Cuomo should not succumb to this kind of thinking. editor Xana Antunes supposedly reformist Albany regards New New York City is the economic engine that drives the state, managing editor Glenn Coleman deputy managing editors Valerie Block, York City. but it has no shortage of needy residents and faces a Erik Ipsen Last year, the Paterson administration $2.4 billion budget deficit of its own. senior producer, projects Kira Bindrim senior producer, news Elisabeth Butler Cordova eliminated the city’s entire allocation of The city has other important measures on its Albany contributing editor state revenue sharing, also about Elaine Pofeldt wish list. A crucial one is a new pension tier for future columnists Greg David, Alair Townsend $300 million. State legislators from the city supported the city employees.The Legislature should approve a tier politics editor Erik Engquist Bloomberg administration’s loud protests but were that ends the abuses in the current system, such as overtime pulse editor Barbara Benson T senior reporters Theresa Agovino, compelled to approve the cut when the governor included it pay permanently inflating lifetime pension payments. Aaron Elstein, Lisa Fickenscher, Matthew Flamm, Miriam Kreinin Souccar in emergency spending bills that kept state government from Albany should go further by allowing the city and its reporters Marine Cole, Amanda Fung, shutting down. unions to create Daniel Massey, Adrianne Pasquarelli, Hilary Potkewitz, Jeremy Smerd The city, which has a $63 billion budget of its own and has NYC faces pension tiers without art director Steven Krupinski managed fiscal affairs much better than Albany has, coped state approval.The deputy art directors Carolyn McClain, Daniel Mednick without last year’s $300 million. But the state’s message was a $2.4 billion city’s pension costs will staff photographer Buck Ennis disturbing. Albany essentially punished the city for superior continue to rise copy desk chief Wendy Zuckerman budget deficit copy editor Thaddeus Rutkowski management and ignored that city residents and businesses unsustainably until research editor Dana Gordon send billions of dollars more to Albany than they receive of its own Albany acts. assistant research editor Suzanne Panara back in services and aid. The state should also EDITORIAL AND ADVERTISING OFFICES This year, revenue sharing will again be an inviting target give the city tools to 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 for Gov. Andrew Cuomo and the Legislature, who must cope with work force advertising: 212.210.0259 close a $10 billion budget gap.The Paterson administration reductions.The city Cable craincom nyk Fax 212.210.0499 said it wiped out revenue sharing for New York City but not needs more flexibility to move employees to where they are Entire contents ©copyright 2011 Crain for municipalities like Rochester and Syracuse because the needed, uninhibited by obsolete restrictions in state laws Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP funds represent a much larger portion of smaller cities’ from a bygone era. It must have the right to lay off teachers Inc., used under license agreement. budgets. in a manner that best serves children, rather than the rigid TO SUBSCRIBE: But that’s true for nearly every funding stream from last-in, first-out system. Call 888.909.9111; fax 313.446.6777. $3.00 a copy, $59.79 one year, $109.79 two years. Albany. By that logic, the state should eliminate all aid to the The Bloomberg administration is also seeking changes www.crainsnewyork.com city. Of course, city residents would never stand for that. But to the procurement process, so it can get more bang for they didn’t rise up against the revenue-sharing cut because its buck. ADVERTISING AND MARKETING advertising director Trish Henry that money would have gone into the city’s general fund These reforms would give the city more control over its senior account managers rather than to a particular constituency.That made an easier destiny.The state, which has plenty of its own problems to Irene Bar-Am, Courtney McCombs, William E. Squitieri account executive mark than, for example, state parks, which had proposed deal with, should be happy to oblige. Anthony Mowad sales manager, classified print & online John Gallagher sales coordinator, print & online Lulé Haznedari newsletter product manager CRAIN’S ONLINE POLL COMMENTS Alexis Sinclair credit Todd J. Masura 313.446.6097 marketing director Amy Crossman IS BROADWAY assistant marketing manager Sabra Harrison OVERPRICED? Did story bury the LEED? director, audience development John LaMarca Date of poll: Jan. 11 senior audience development manager 209 votes GO FOR THE GOLD of occupancy costs. Yet studies of LEED-rated Tarek Cotran buildings have demonstrated a 10% increase in Yes. With good EVERY EFFORT TO MAKE reducing energy the productivity of personnel. general manager, interactive seats at prime consumption more competitive and attractive While all buildings should be built as Marc Minardo shows often web developer, interactive . 89% running higher is a step in the right direction (“The gold efficiently as possible, buildings are built for Chris O’Donnell than $100 per standard for green under fire,” Jan. 3). different uses, and comparisons of energy ticket, the Great The pioneering LEED program encourages consumption are not particularly productive. In NEW YORK PRODUCTION White Way is too the building of efficient buildings. A method of fact, they are a distraction from the real issue, production and pre-press director expensive for publicly posting a single statistic for each which is the energy source. most New Michael Corsi Yorkers to enjoy 11%. building, such as BTUs per square foot, has a —douglas durst advertising production manager often. competitive spirit that might engage more Chairman Suzanne Fleischman Wies people to try to strive for better results for their The Durst Organization PUBLISHED BY CRAIN COMMUNICATIONS INC. No. As production property. Small steps like this are what will Keith E. Crain values rise, so do lead the nation to energy independence. chairman ticket prices. MORE DATA ON SAVINGS president Rance Crain —theodore m. bier secretary Merrilee Crain President THE ORGANIZATIONS that want to regulate treasurer Mary Kay Crain T.M. Bier & Associates Inc. environmental good will need to do more to executive vp, operations William Morrow show supporting data that long-term savings senior vp, group publisher Gloria Scoby group vp, technology, circulation, THE REAL ISSUE IN ENERGY EFFICIENCY justify the initial investment. If the real mission manufacturing Robert C. Adams is to save the planet, then do what is necessary vice president/production & ENERGY CONSUMPTION should not be the prime to provide data that justifies the investment. manufacturing David Kamis determination of sustainable construction. —joe vecchio chief information officer Paul Dalpiaz Buildings are meant to be used—the occupants corporate circulation/audience development director Kathy Henry require adequate amounts of filtered outside air CRAIN’S WELCOMES SUBMISSIONS to its opinion and daylight, for instance.This requires energy pages. Send letters to [email protected]. founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) For this week’s questions: Go to to bring in the air, filter it and temper it. Send columns of 475 words or fewer to www.crainsnewyork.com/poll to have your say. Energy costs are less than 10% of occupancy [email protected]. Please include the writer’s costs, while personnel costs are more than 60% name, company, address and telephone number. 10 | Crain’s New York Business | January 17, 2011 20110117-NEWS--0011-NAT-CCI-CN_-- 1/14/2011 1:43 PM Page 1 OPINION THE NEW ALBANY The governor must also push through reforms previously de- MEET SENATOR clared nonstarters by Speaker Shel- NYS faces mother don Silver, including the disclosure Charles of outside income (the speaker’s is thought to exceed $1 million annu- Schumer of all heavy lifts ally from personal injury lawyers) and redistricting. DATE Fulfilling Mr. Cuomo’s agenda will be the mother of all heavy lifts. January 18, 2011 BY MARK ALESSE Opposing it will be powerful TIME groups that benefit from the status ECADES OF WARNINGS from small business, local quo—not least of which are those 8:00 AM Breakfast government and reform groups, dismissed as in the Legislature with a vested in- 8:30 AM Program special pleading, have finally been realized: New terest in not rocking the boat. This VENUE is why reform has foundered for so York,now deeply in debt,losing its population of long. The Grand Hyatt 20- to 30-year-olds and facing a $10 billion Can any governor hope to pre- deficit, has hit rock bottom. And judging by his early pro- vail? Not without a battle royal. Mr. Senator Schumer will discuss what lessons he D Cuomo, known to be a savvy politi- learned from the 2010 elections, what he believes nouncements, Gov. Andrew Cuomo is determined to face the cal infighter,understands this better government should do to revive the economy and get problem squarely and repair the damage. than anyone. As Crain’s has reported, busi- the unemployed back to work, and how Democrats His most striking statement has their owners begged legislators for nesses have formed the Committee can work with newly empowered Republicans in been that “New York has no future relief that never came. to Save New York, with former Washington. He will be questioned by Crain’s as the highest-taxed state in the na- Not many grasped the scope of Comptroller H. Carl McCall and tion.” True, but surprising to hear the disaster.Mr.Cuomo does.Even investment banker Felix Rohatyn political editor, Erik Engquist and another journalist. from a New York Democrat. That powerhouse New York City can’t behind it.They have $10 million to grim future has already arrived up- afford upstate to remain an eco- help them fight alongside Mr. COST TO ATTEND state.The Federal Reserve has con- nomic dead zone subsidized by Cuomo. That is a resource lacking cluded that the Buffalo region’s downstate taxes. in past reform attempts, and it will $75 for individual ticket(s) economy increasingly consists of Mr. Cuomo has said that to re- give this effort a decisive edge. $750 for table(s) of ten government spending on the elder- store fiscal stability and growth, he There’s no room for failure. ly,public employees,prison popula- must cut spending on education And with Mr. Cuomo’s tough- tions, welfare recipients and the and health care—the largest and minded leadership and the busi- mentally ill. An unsustainable situ- most sacrosanct budget items—ef- ness community’s substantive in- ation. fect pension reform and trim the volvement,there is at last reason for This depression occurred in slow state’s work force. He must cap optimism. motion, and I witnessed it firsthand property tax hikes at 2% while eas- over 18 years of conducting meet- ing local government mandates. Mark Alesse represented the small business ings throughout upstate. It moved He must hold the line on other tax- community as state director for the New me profoundly. Businesses in fami- es and reduce the costs of doing York chapter of the National Federation MEET SENATOR lies for generations were dying, and business. of Independent Business. Dean Skelos backed Committee to Save New York has raised enough money to DATE Deck is stacked counter any ad campaign they February 10, 2011 launch. Assembly Speaker Sheldon Silver,ex- TIME pected to be the governor’s major 8:00 AM Breakfast in governor’s favor adversary,seems to have changed his 8:30 AM Program mind on key issues. He backed a cap VENUE S ANYONE ELSE SURPRISED on property taxes, said the million- by the vibes coming from Al- aire’s income tax surcharge won’t be The Sheraton New York bany—a place of overheated rhetoric,fealty to special in- extended and opposed other tax in- terests and disdain for the will of voters? Two weeks af- creases. Reading his mind has al- New York State Senator Dean Skelos will discuss how ter Gov.Andrew Cuomo outlined his rather radical—for ways been impossible, but it may simply be that he realizes it’s time Republicans will run the Senate now that they have New York, at least—agenda to shrink the size of state for a new plan or sees no reason to recaptured the majority, whether New York can government and close a $10 billion budget gap with spending take on the governor. resolve its budget problems through cost cutting alone I Senate Republicans cuts rather than tax increases, some remarkable developments are more holy than the governor on the budget. and how to resolve corruption in the Legislature . He are unfolding. Public-sector unions are treading softly, the They don’t really have a choice, as will be questioned by Crain’s political editor Erik they recaptured control of the Engquist and Capital Tonight host Liz Benjamin. hospitals and their aim. Wisconsin is con- chamber on a promise to reduce union allies are refrain- sidering eliminating the spending and prevent tax increases. ing from their usual pre- right of state workers to This being Albany, doubts re- COST TO ATTEND dictions of dire health- unionize,and Indiana is main.Health care interests could try $70 for individual ticket(s) if pre-registered by Feb care consequences, moving to end deduc- to undermine the Medicaid cost- Assembly Democrats tion of dues from pay- cutting panel they are part of, surely 3rd; $75 thereafter. $650 for table(s) of ten if are endorsing much of checks. a high-risk maneuver. pre-registered by Feb 3rd; $750 thereafter. the Cuomo plan, and Health care interests Assembly Democrats are look- Senate Republicans also recognize the polit- ing for some way to win stronger also vow support. What ical winds.They under- rent regulations in return for their is going on? stand that angering Mr. concessions, a Hail Mary if there Public-sector unions GREG Cuomo in the first year ever was one. Senate Republicans have caught the drift of DAVID of his term is reckless could always balk if education cuts public opinion. Private- and that chicken-little target the wealthy districts they rep- sector unions are no warnings about reduced resent, but they would be on shaky You must be pre-registered to attend these events. No refunds permitted. longer willing to support better pen- spending have lost their effective- ground there. Pre-register online by going to crainsnewyork.com and clicking on sions for government workers than ness.They also know that they won’t The deck is stacked in favor of their own members receive. Gover- have the airwaves to themselves the Cuomo agenda. It truly is a dif- "Events". For more information, call the Events Hotline at 212-210-0739. nors of other states are taking direct anymore, because the business- ferent capital. January 17, 2011 | Crain’s New York Business | 11 20110117-NEWS--0012-NAT-CCI-CN_-- 1/13/2011 7:37 PM Page 1 NEIGHBORHOOD JOURNAL Bronx stews over sewage-treatment proposals can do at this point but hold their powerful stench emanating from its vocal opponent of City’s quest means noses. candy-striped smokestack. Resi- the original plant. smelly shuttered “The community board is very dents complained of respiratory dis- Synagro execu- concerned,” said Rafael Salamanca tress, headaches and nausea; on par- tives confirm that facility could rise Jr., district manager of Bronx Com- ticularly bad days, children became the Houston-based again at Hunts Point munity Board 2, which includes the ill on playgrounds. company is partici- neighborhoods surrounding the Community groups and the Nat- pating in the RFP. plant.“For much too long,this com- ural Resources Defense Council “We look for- BY HILARY POTKEWITZ munity has suffered from the filed a nuisance lawsuit against the ward to providing sewage smell, and we are very happy plant’s operator and the DEP in technologically ad- AST SUMMER, residents of that NYOFCo is gone.” 2008, demanding an end to the vanced, environ- Hunts Point in the Bronx For more than 15 years,the com- stench zone. A year later, then- mental solutions for celebrated a hard-fought pany, officially known as New York Attorney General Andrew Cuomo RAISING A STINK: Community groups sued NYOFCo over its sewage- this essential public- victory: NYOFCo, the got into the action, suing NYOFCo to-fertilizer plant. The city says it ended the firm’s contract to cut costs. service need in New company running a The city DEP and its parent company. York,” said a com- Lhugely odoriferous sewage-to-fer- Finally, in early 2010, with bud- pany spokesman. tilizer operation on Oak Point Av- get pressures mounting and the law- That’s where the current request Synagro officials went so far as to enue, lost its contract with the city won’t say how suits raging, the DEP opted against for proposals comes in. Companies drop in on a Hunts Point communi- and shut down its factory. renewing NYOFCo’s contract with have until the end of the month to ty board meeting last fall to discuss But recent moves by the New many proposals the city.The plant shut down in July. submit their ideas. DEP will not say the new technology that it would York City Department of Environ- While Hunts Point residents saw how many plans it has received, but use this time around. mental Protection could yet undo it has received this as a victory for their campaign, it has already extended the submis- “They made this presentation, that triumph. the DEP insists that the decision sion period once in the hope that and we said it was interesting,but we The agency began accepting pro- was budget-related.The city termi- more proposals will trickle in. didn’t make any decisions,” said a posals late last year for new programs nated the contract in order to save still-skeptical Mr. Salamanca. “Af- to treat biosolids—that is, sewage. $18 million, said an agency spokes- Back from the dead? ter all, if they had this new technol- One of the companies eager to par- man. Putting the sludge into land- SOME NEIGHBORHOOD OFFICIALS ogy, why didn’t they bring it into ticipate is none other than Synagro Organic Fertilizer Co., took in fills was much cheaper than con- worry about submissions that in- that old facility? They didn’t have a Technologies Inc., NYOFCo’s cor- sewage sludge by the truckload from verting it into fertilizer. volve the old NYOFCo location. valid excuse or reason for that.” porate parent, which wants to build the DEP and converted it to fertil- “We’re still looking to figure out “Any future use of this site must The community board is holding a new sewage-treatment facility at izer. In the process, the plant blan- how to process biosolids in a cost- take into account past community a development committee meeting the site of its old plant. keted the nearby Longwood and effective, sustainable way,” said the opposition,” said Bronx Borough about the Synagro proposal on There is little that area residents Soundview neighborhoods with the spokesman. President Rubén Diaz Jr.,who was a Thursday. Ⅲ 12 | Crain’s New York Business | January 17, 2011 20110117-NEWS--0013-NAT-CCI-CN_-- 1/13/2011 5:27 PM Page 1 REAL ESTA TE INSIDE Real Estate Board of NY recognizes honorees PAGE 19 2011 forecasts from industry experts PAGE 20 Top property sales in 2010 PAGE 21 Tenants get out the shoehorn Densification fits more bodies in less space; landlords, beware BY ANDREW MARKS ANGER: Just when Manhattan’s landlords thought the time had arrived to get excited about rebounding Wall Street profits and a quickening pace of hiring across the board, a new challenge is rearing its parsimonious head.Through densification, employers are cramming more people into their existing spaces, or even smaller ones. DFrom cosmetics giant Avon to law firms and media companies, businesses large and small are finding innovative ways to do more with less square footage.They are using the space-lite, privacy-starved model that Michael Bloomberg brought to City Hall, based on his days in crowded Wall Street trading rooms. “Twenty years ago, 400 square feet per person was the standard,” said Frank Edwards, executive managing director of Colliers International’s project management group. These days, he said, 225 square feet is the average, “and I’m already starting to see people plan for 190 square feet.” Space planners chalk up the trend to a potent combination of the need to cut costs, a growing belief that open offices foster creativity and collaboration, and a new generation of workers who prefer camaraderie over corner offices—and who, many employers fret, would use privacy simply as an opportunity to text friends or shop online. michael sloan See DENSIFYING on Page 14 itself as something of the market of the moment.Its mix of smaller floor Midtown south’s moment has arrived plates, lower rents, a more human scale and a top-notch list of trendy er Rizzoli International After decades of be- attractions have combined to make Once-overlooked area thrives as trendier Publications renewed ing completely over- it a favorite among more creative alternative; High Line, Shake Shack help their leases there. 18.7%% shadowed by New types—and employers who want to “When I first started RISE in avg. rents York’s two biggest mar- attract and retain them. and into midtown south in general. working around here, it kets—midtown and Among them are advertising BY MARINE COLE The move paid off. In just the was a dead zone,” said in Class A buildings downtown—midtown agency Grey Global Group, which past six months, Leo Burnett and MacDara King, who in midtown south south is coming to the set up shop at 200 Fifth Ave. a year TWO YEARS AGO, Rockrose Develop- the Whitney Museum of American began his job at the For- as of third quarter fore. ago,and Google,which leased more ment shelved plans to turn 300 Park Art took two floors each at the eign Policy Association The market, which than 500,000 square feet at 111 Ave. South into a hotel and instead 195,000-square-foot, century-old at 470 Park Ave. South spans a number of Eighth Ave. starting in 2006, and poured $5 million into a renovation building at the corner of East 22nd a decade ago. “Now there’s a good neighborhoods and runs from 41st which late last year agreed to pur- designed to lure some of the creative Street. Meanwhile, agency Wil- bar scene, and the restaurants are street down to Canal Street and chase the entire 3 million-square- companies streaming into the area helmina Models and book publish- getting better.” from river to river, has established See MIDTOWN SOUTH on Page 18 January 17, 2011 | Crain’s New York Business | 13 20110117-NEWS--0014-NAT-CCI-CN_-- 1/13/2011 6:29 PM Page 1 REPORT REAL ESTA TE Densifying tenants Continued from Page 13 Industry observers note that there are some attractive trade-offs. Lost personal space is showing up in the form of bright, airy and highly popular lounges, so-called privacy rooms and expandable conference rooms, according to Howard Fiddle, vice chairman of CB Richard Ellis and head of its agency group, which specializes in representing landlords. He reckons that companies are taking 10% to 15% less space on average than they did just three years ago. Numbers like that will make even the bravest office landlord flinch. “No question, companies are consolidating their workplaces and looking to get more efficient,” said Anthony Malkin, president of Malkin Holdings.“The only way to deal with it is to offer attractive, well-located buildings with great infrastructure.” On the other hand, Mr. Malkin acknowledges that offering a bargain can help—which proved true recently with a prospective tenant shopping for 100,000 square feet at the Empire State Building. “They told us our space didn’t lay out efficiently enough for their design that included fewer square feet per employee, so I Txt exte 100 gave them 5% more space at the same price,” he said. SOMETHING TO WRITE spent four months designing nine HOME ABOUT: Alan Space helps lawyers Gaynor + Co.’s design floors for Orrick. allowed Text 100 to see the light Attorneys still have windowed double its number of offices—albeit smaller ones; in fact, workers in an office FROM A COST PERSPECTIVE,the num- all the walls and doors are glass. space that’s just one- bers behind Orrick Herrington & That, along with the high ceilings third larger. Three open- Sutcliffe’s shift last spring from 666 and existing floor-to-ceiling win- plan areas soften the feel. Fifth Ave. to the Black Rock build- dows, allows more light to get to the ing between Fifth and Sixth avenues bullpen area at the core of each floor. In addition, each floor boasts three conference rooms plus a lounge that Orrick Herrington doubles as an extra conference & Sutcliffe space. Another full floor has been carved up into 16 conference rooms. ADDRESS/SPACE 51 W. 52nd Mr. Bicks’ favorite element is the St. / 220,000 sq. ft. café, which flows into the reception area and is linked to the conference- BEFORE 981 sq. ft. per attorney, center floor by an elegant staircase. 493 sq. ft. per staffer “It makes for a wonderful space AFTER 635 sq. ft. per attorney, to get everyone together,” said Mr. 378 sq. ft. per staffer Bicks. MOVING DATE April 2010 Last month, the café was the site of the office holiday party, which BEST FEATURE The reception was a huge hit. Orrick area and café are so attractive Mr. Bicks said that the offices’ Herrington & that there’s a waiting list of openness and light—especially on Sutcliffe employees who want to use it for the corners of each floor—played a weddings and bar mitzvahs. big role in selling his partners and NEW LEGAL AGE: The BIGGEST REGRET It was tough staff on the plan.So did the informal firm had to pare back its space, but Studios for the partners to give up their meeting rooms on each floor and the Architecture’s revamp huge offices and traditional brightly hued furniture, based on pleased staffers with its dark-wood furniture. designs by the building’s architect, openness and light. Eero Saarinen. “The key was finding the right were compelling. The international building,” said Mr. DeGarmo, who designers retained the single en- stunning figure of 120 square feet man resources director—“without law firm is leasing 10% less space, notes that Black Rock’s high ceil- closed office used at the old space, per person. everyone feeling like they’re sitting but housing 20% more people—a ings and narrow column widths they eliminated all partitions in the And they did it—in the words of on top of one another.” total of 378—in a radical new layout made the new design possible. staff and reception area, achieving a Jody Johnson,Text 100’s former hu- True, the 14,400-square-foot that will also allow it to add 20% space boasts 60 workstations. But more personnel in the future. there are seven large, partially glass- “We’re dealing with changing PR without borders: Text 100 walled conference rooms—up from economic circumstances, and we two previously—plus an open away with partitions ADDRESS/SPACE 352 Park Ave. South / 14,400 sq. ft. had to focus on what’s best for the kitchen/lunchroom that can be firm,” said Peter Bicks, New York THE ASSIGNMENT that Text 100 exec- BEFORE Approximately 180 sq. ft. per person converted to a meeting space; two office leader and partner in charge of utives handed architect Alan Gay- AFTER 120 sq. ft. per person one-person “phone booths” allow planning Orrick’s new Manhattan nor + Co. last year seemed to man- for private conversations or confer- office.But he also stresses another date a near miracle: Create a space MOVING DATE May 2009 ence calls. key consideration: creation of what that would foster collaboration and BEST FEATURE A garage-style roll-up door allows two small conference To maximize flexibility,a garage- he terms a “collaborative, vibrant communication and allow the pub- rooms to morph into a far grander space. style door between two of the con- space to make people want to come lic relations firm to double its staff to BIGGEST REGRET Some staffers find the two booths for private phone con- ference rooms can be raised to cre- to work and to work together.” 60, while expanding the total office versations claustrophobic, at 36 and 48 square feet. ate one large meeting room. Three Todd DeGarmo, CEO of Stu- size by only one-third. open-plan areas with overstuffed dios Architecture, and his team For openers, while the interior See DENSIFYING on Page 16 14 | Crain’s New York Business | January 17, 2011 Project6:fp template.qxd 1/11/11 12:15 PM Page 1 20110117-NEWS--0016-NAT-CCI-CN_-- 1/13/2011 5:28 PM Page 1 REPORT REAL ESTA TE staffed by teams of up to eight indi- tive vice president of communica- BBC Worldwide viduals—act as dual-purpose gather- tions at BBC. Densifying tenants Americas ing spots and noise buffers. Another move that saved space “They give this space a much was switching to pool printing,with ADDRESS/SPACE 1120 Sixth roomier feel than we had at our old printer hubs next to meeting rooms, Continued from Page 14 just 5% more square feet than they Ave. / 47,000 sq. ft. location, which had 15 enclosed of- rather than providing individual club chairs help soften the look and previously had on three floors at 747 BEFORE About 200 sq. ft. per fices,” said Jo Petherbridge, execu- printers at most desks. Ⅲ feel of the space. Sixth. But courtesy of the new of- person fice’s fully open configuration,it can AFTER 179 sq. ft. per person accommodate 232 people—20% DENSIFICATION DO’S AND DON’TS Global template more than the old space. MOVING DATE October 2010 TWO MONTHS AGO, RANDOM HOUSE ANNOUNCED PLANS to sublease as much While a desire to save on occu- inspires media firm BEST FEATURES “Breakout as 245,000 of its 645,000 square feet of space at 1745 Broadway, pancy costs was uppermost in the spaces” and open lounge areas WHEN BBC WORLDWIDE AMERICAS be- minds of BBC execs, a close second becoming the latest big New York employer to join the ranks of densifiers. The ease communication and collab- publisher has yet to sort out exactly how it will squeeze its 1,000-plus staffers gan laying the groundwork for a new was creating an office that func- oration; the reception area/“living into the remaining space, according to Stuart Applebaum, head of office to replace its existing U.S. tioned more efficiently and allowed room” boasts a 30-foot-long headquarters in 2008, coming up employees to work smarter. Al- leather sofa and bleachers. communications. with a model for the open-plan though the Perkins Eastman-de- Here, then, are a few guidelines for Random House execs and others who space was a snap. signed layout affords less space per BIGGEST REGRET The construc- are thinking of shrinking, gleaned from a distinguished corps of interior space “It’s the configuration the BBC person, the nine “breakout spaces” tion schedule was overly opti- designers. uses throughout the world,” said and big open lounge areas have been mistic, so work was still being Andrew Bott, chief financial officer big crowd-pleasers. done after staffers had moved in. Play the name game at BBC Worldwide Americas. “With our new wireless head- ● Do not use the term densification. “That word is right up When it came to setting specific sets, it’s really no problem at all to there with the other ‘Big D’—downsizing—when it comes to dirty density targets, the BBC USA team shift from the team tables to either feature a crazy-quilt mixture of fur- words for employees,” said Frank Edwards, head of project simply adopted the figures for its the lounges/breakout spaces or one nishings, including sofas, chairs, cof- management at Colliers International. London and Sydney offices as of the 10 conference rooms,” said fee tables, diner booths, and high ● Do refer to implementing a new workplace strategy. That guidelines. Mr. Bott. tables with high stools. These loca- allows you to point out the more positive aspects of the big By taking the entire fifth floor at The breakout areas are designed tions—sandwiched between the squeeze, like the open, light-filled, just-plain-friendly spaces. If 1120 Sixth Ave.,they ended up with in bright hues,from teal to plum,and long rectangular tables that are the company is supplementing its office revamp by enhancing mobile technologies, be sure to emphasize the Wi-Fi, mobile broadband and mini- laptops, such as iPads, that make employees’ lives easier and more fun—as well as much less space-intensive. Share the facts ● Do not keep densification plans secret if you want to avoid staff revolts. ● Do share the rationale for the new order, as well as the details. Establishing a dialogue with staffers during the design process takes the shock out of the change and gives employers the opportunity to put the best possible gloss on the inevitable. “Some companies have us publish ‘user-guides’ to the space,” said Ted Hammer, senior managing partner at architecture and interior design firm HLW International. Pick the right place ● Do not judge a building merely by the amount of the rent bill. ● Do keep in mind that companies looking to densify by more than 20% need the right kind of space to do it. “We have to eliminate certain office buildings in searches when densification is a big goal,” said Todd DeGarmo, CEO of Studios Architecture. Aim to find a property with column-free interiors, featuring elevator banks and other key services—that are off to the side, and good natural light. Look for floor plates averaging 25,000 to 50,000 rentable square feet. “Any bigger is too spread-out for an open plan, while smaller makes the open layout feel cramped,” said Peter Miscovich, head of corporate solutions at Jones Lang LaSalle. Space out ● Do not provide a desk for every staffer if many workers spend significant blocks of time out of the office. ● Do set aside small, shared spaces for workplace transients. At IBM, 40% of employees have no designated office. “Why give permanent space to an employee who’s only in the office half the time or less?” said Alan Gaynor, head of an eponymous architecture and design firm. Mix up the design ● Do not go overboard with consolidating. Sure, a sea of open-landscaped workstations saves space and money, but rank-and-file workers, as well as execs, are only human: They need at least a dollop of privacy. ● Do mix open space with enclosed private and semiprivate spaces. “That way,” said Jones Lang LaSalle’s Mr. Miscovich, “people don’t feel like they’re working on a factory floor.” Establish ground rules ● Do not heedlessly create spaces where employees can retreat at will to make private phone calls—or simply revel in the quiet. ● Do let people know where they can go and when. Remember, privacy rooms can become so coveted that they spark conflicts. “People will camp out in them if rules aren’t communicated clearly,” observed Scott Francisco, head of HLW International’s design strategy consulting practice. —ANDREW MARKS 16 | Crain’s New York Business | January 17, 2011 Project9:fp template.qxd 1/11/11 4:08 PM Page 1 Thank You. GUQbUWbQdUVe\d__ebdU^Q^dcQ^TdXU>UgI_b[Rb_[UbQWUS_]]e^Ydi V_bi_ebce``_bdTebY^W" ! GUXQfURYW`\Q^cV_b" !! DRR`]RPVNYYfNPX[\dYRQTRaURS\YY\dV[TV[QVcVQbNY`N[Qº_Z`dVaUdU\ZdRd\_XRQ`\ PY\`RYfN[Q`bPPR``SbYYfV[" ! ' =Qdd1^TUbc_^ CXU\d_^6bQ^[\Y^ =YSXQU\ 4_eW\Qc4ebcd :_^QdXQ^4ebcd Member ® REAL ESTATE BOARD OF NEW YORK 20110117-NEWS--0018-NAT-CCI-CN_-- 1/14/2011 1:02 PM Page 1 REPORT REAL ESTA TE P L U S DOWNTOWN’S Vacancies grow outside Manhattan DILEMMA HE OFFICE MARKET in Brooklyn and Queens and jumped to 8.1% in the last quarter, able office space, those departures on Staten Island is still struggling to recover. from 7.2% in the previous period. put a relatively big dent in the fig- +12% “The outer boroughs clearly have ures, Mr. Macke noted. Gain in space leased last year Those areas, whose collective net space some issues,” said Chris Macke, se- And because tenants in the outer vs. 2009; the total was the absorption was negative throughout 2010, posted nior real estate strategist at CoStar. boroughs tend to seek smaller spaces, highest since 2007 T Downtown Brooklyn saw the leasing up emptied offices takes their highest level of negative absorption in the largest setbacks: NYSE Euronext longer than it would in Manhattan. fourth quarter, according to CoStar Group’s latest report on moved out of roughly 387,000 For instance, the tenant taking the 3 the boroughs beyond Manhattan (not including the Bronx). square feet at 2 MetroTech Center, most new space in the boroughs last In all, 564,930 more square feet of space was put on the market and J.P. Morgan Chase left about year was the city’s Department of Consecutive years in which 352,000 square feet at 4 MetroTech. Information Technology & Tele- more space was added than was leased during those three months, even as Manhattan Since the market in the boroughs communications,which took 72,000 to market than was leased racked up positive absorption of 2 million square feet. beyond Manhattan is so small, with square feet at 2 MetroTech. Source: CB Richard Ellis Accordingly, the office vacancy rate for the three boroughs just 67 million square feet of rent- —amanda fung Worldwide Plaza mer, and the law it has yet to sign a deal with Nomu- neering and operations firm signed a State agency stakes firm signed the ra. The company leases 500,000 five-year lease for 15,600 square feet drops bird in hand lease last month. square feet at the World Financial at the tower, between Broad and downtown claim According to a Center and is still in negotiations New streets. The asking rent was THE OWNER of Worldwide Plaza, at statement by Wil- with its landlord about staying. $37 per square foot. CDM plans to NEW YORK STATE’S Office of Tempo- 825 Eighth Ave., has sent Wilmer- liam Perlstein,co- Nomura’s broker, John Cefaly of move by the end of March. rary and Disability Assistance reached Hale, a law firm that had signed a managing partner Cushman & Wakefield Inc., didn’t The Cambridge, Mass.-based a 10-year deal to lease 90,000 square lease for 200,000 square feet at the of WilmerHale, return a call for comment. company now has offices in mid- feet at 100 Church St., sources said. tower, back out into the market. his firm was re- A spokesman for George Com- town and in the financial district. The agency,now at 22 Cortlandt St., Sources say that the Worldwide cently told that 825 Eighth Ave. fort said that the company was still Executives looked at space in both will pay roughly $33 a square foot. is now negotiating instead with No- Worldwide Plaza is now negotiat- in discussions with WilmerHale. areas, said Jamie Addeo of Cre- The new tenant is a boon to SL mura Holding America to lease ing with another tenant. The prop- —theresa agovino saPartners, who represented CDM. Green Realty Corp.,which took over 600,000 square feet at the 1.7 mil- erty cannot accommodate both. “Midtown rents were higher the 1.1 million-square-foot building lion-square-foot property, between “Needless to say, we are very dis- than downtown’s,” she said. “At 14 early last year after the Sapir family West 49th and West 50th streets. appointed in how WWP is han- Consultant CDM Wall, we were ultimately able to se- defaulted on its mortgage.The prop- The building’s owner, a partner- dling this matter,” Mr. Perlstein consolidates cure a landlord-prebuilt space.” erty was roughly 50% vacant, but SL ship between George Comfort & said, adding that he is now looking Jonathan Cope of CB Richard Green has since signed on new ten- Sons and RCG Longview that’s for new space. CAMP DRESSER & MCKEE INC. will Ellis represented landlord Capstone ants—including insurer Healthfirst, called WWP Office, signed a letter Brokers were surprised by the consolidate its Manhattan presence Equities. which leased 172,000 square feet. of intent with WilmerHale last sum- landlord’s actions because, they say, at 14 Wall St. The consulting, engi- —amanda fung —theresa agovino Midtown south on rise DRAWING CARDS THE HIGH LINE CHELSEA MARKET Block-long foodie paradise inside the Continued from Page 13 town—don’t have midtown south’s Elevated freight 110-year-old National Biscuit Co. building. Houses dozens foot building for $1.77 billion. panache. railway-cum-park, The market’s success is evident “The individual on the street in of restaurants and retailers, from Lucy’s Whey and in the numbers, which show it held midtown south is somebody who opened in June 2009; Jacques Torres Chocolates to Amy’s Bread and One Lucky up better during the recession than has an open collar,” said Jonathan runs from Gansevoort Duck. its peers and has bounced back faster Adelsberg, co-chair of the commer- Street to West 20th Street. Second leg, to MARIO BATALI’S in the recovery. cial leasing practice at Herrick Fein- EATALY Opened in As of the third quarter, average stein, located at Park Avenue South West 30th Street, to open in spring. August on ground rents in Class A buildings in mid- and East 32nd Street. “It’s some- floor of the former Toy town south were up 18.7% from body who has an iPhone instead of Features plantings, sculpture, high-design benches, great Building at 200 Fifth year-earlier levels—far outpacing a BlackBerry.” views, lots of people. Ave., it bills itself as midtown’s 2.4% rise,not to mention That looser style is attractive to MEATPACKING DISTRICT Greasy food-processing center the 5.6% dip posted downtown, ac- younger,more creative companies and “largest artisanal cording to data from CresaPartners. their employees, as are all the trendy reborn as destination for the creative industry, particularly Italian food and wine Similarly,rents for Class B buildings hotels, restaurants and bars flourish- fashion designers. Also features trendy restaurants and bars. marketplace in the world.” The 50,000- were up nearly 1% in midtown south, ing in commercial Manhattan’s mid- MADISON SQUARE PARK Long neglected, often overlooked while they fell in both midtown and section. The Gansevoort Park Av- square-foot space includes four restaurants and an until extensive renovation in 2001 restored lawns, extensive Italian food market. downtown. Crucially, average rents enue NYC hotel opened its doors in refurbished the fountain, and added a reflecting pool and in midtown south are 31% less than the summer. The Hurricane Club, a ornamental lights. Shake Shack opened in 2004 and still L TRAIN Former 14th midtown’s, though they do stand Polynesian restaurant and tiki bar, functions as hub for local techies. Street/Canarsie 13.3% above downtown’s. opened in September at Park Avenue subway line reborn in Midtown south also outshines its South and East 26th Street. There’s UNION SQUARE Home rivals in terms of availability rates. also Mario Batali’s wildly popular 5- recent years as to the city’s first and fastest, most direct For the Class B space that predomi- month-old Eataly, just down the largest green market. nates in the area, availability stood at street from Madison Square Park route to hypercool Renovations in recent Williamsburg. Makes 10.2%, compared with 13.7% in and the city’s original Shake Shack. years expanded the midtown and 14.6% downtown in Parks and cultural attractions are five stops along 14th plaza along East 14th Street. the third quarter,according to Cresa. sprouting as well. The Whitney is Street, and added The downside of midtown planning to build a museum in the plantings and a NEWEST TRENDY HOTELS south’s success is that it is increasing- meatpacking district, across from 15,000-square-foot GANSEVOORT PARK AVENUE NYC HOTEL on Park Avenue ly difficult for growing companies to the hugely popular 18-month-old playground in the find large chunks of real estate there. High Line, which will open its sec- South features Asellina restaurant, rooftop bar and north end. In addition, midtown south’s long- ond leg in the spring. swimming pool. standing reputation as a market “All these amenities are very ap- HUDSON RIVER PARK About half of its 5-mile-long ribbon of filled with older buildings charging pealing to employees,” said Daniel ACE HOTEL on West 29th Street features Breslin Bar and green along the Hudson is in midtown south. Recent Dining Room, from the owners of the Spotted Pig. lower rents is under threat from the Horowitz, executive managing di- additions include Piers 62-64 between West 22nd and foundering downtown market, rector at Studley. “Historically, ten- West 24th streets in Chelsea, with open grassy areas, a GRAMERCY PARK HOTEL on Lexington Avenue features where average rents are cheaper and ants moved to midtown south for skate bowl, a carousel and a garden. Danny Meyer’s Maialino restaurant. getting more so by the day. lower rents. but it has been in con- But downtown—and mid- stant evolution.” Ⅲ 18 | Crain’s New York Business | January 17, 2011 20110117-NEWS--0019-NAT-CCI-CN_-- 1/13/2011 5:28 PM Page 1 REPORT REAL ESTA TE Industry group celebrates award recipients for the client TITLE Senior partner, counsel. Mr. Boxer is also a member of feet of residential, Real Estate Board solutions group. Stroock & Stroock & the Center for Real Estate and Urban retail and office A member of the Lavan Policy at New York University and sits space. He was to recognize board of REBNY’s on the real estate advisory committee of previously a outstanding leaders management MR. BOXER is the board of trustees of the financial analyst for division, Mr. Freda chairman of the law Guggenheim Museum. Goldman Sachs’ at annual event also belongs to the firm’s real estate Whitehall Fund and Building Owners department. He was focused on HE REAL ESTATE BOARD of New and Managers Association and the New a founder and managing partner of AWARD Young Real Estate Man of the Year acquiring real estate portfolios. T York will honor these industry York Building Congress. Olnick Boxer Blumberg Lane & Troy, a RECIPIENTID BR DAVIDV BRAUSE Mr. Brause is a member of the professionals at a banquet on Jan. 20. real estate specialist that merged with TITLE President, Brause Realty board of the Union Square-14th St. Stroock & Stroock & Lavan in 1987. business improvement district and is AWARD Kenneth R. Gerrety Humanitarian He’s a member of REBNY’s MR. BRAUSE has been active in owning chairman of the Long Island City AWARD Harry B. Helmsley Distinguished RECIPIENTER LEONARD BOXERX executive committee and acts as its and developing nearly 3 million square Business Improvement District. Ⅲ New Yorker RECIPIENT JEFFREY GURAL TITLE Chairman, Newmark Knight Frank MR. GURAL is responsible for all Behind every successful Building Owner there is a host acquisitions, as well as for managing of incredibly talented brokers and steadfast tenants. and leasing a total of 8 million square feet Jack Resnick & Sons thanks the following firms and the brokers who represented them, of space. He also supervises Newmark as well as our existing tenants who renewed their commitments to New York City in 2010. Knight Frank’s noninstitutional portfolio. Chapdelaine & Co. Writer’s Guild of America, Mason Capital Management, LLC The Interpublic Group of Daniel J. Edelman, Inc. Mr. Gural is a member of REBNY’s 199 WATER STREET East, Inc. 110 EAST 59TH STREET Companies, Inc. 250 HUDSON STREET board and chairman of the board of the represented by: 250 HUDSON STREET represented by: 250 HUDSON STREET represented by: Patrick Heeg & Ryan Masiello of represented by: Greg Taubin of Studley, Inc represented by: Mary Anne Tighe & Ken Meyerson Times Square Business Improvement Jones Lang LaSalle David Hoffman, Jr. & Wendy Miller Robert M. Romano & Scott Panzer of CB Richard Ellis, Inc. District. of Cassidy Turley General Nutrition Corporation of Jones Lang LaSalle Dell Marketing USA, LP 1755 BROADWAY Amsco School Publications 250 HUDSON STREET Pace University represented by: United States of America 315 HUDSON STREET AWARD Bernard H. Mendik Lifetime represented by: 161 WILLIAM STREET Ariel Schuster and Greg Covey 315 HUDSON STREET represented by: Leadership in Real Estate John G. Nugent & Chris Adamo of represented by: of Robert K. Futterman & Alex M. Chudnoff & Scott Vinett RECIPIENT LESLIE WOHLMAN HIMMEL CB Richard Ellis, Inc. David A. Falk & Kyle J. Ciminelli Associates, LLC International Institute of Cushman & Wakefield, Inc. TITLE Managing partner, Himmel + Meringoff of Newmark Knight Frank for Learning, Inc. Properties Sete Consultants & Services Gluckman Mayner Architects, LLP 110 EAST 59TH STREET The NY Society for the (USA), Inc. Spotlight Business Affairs, Inc. 250 HUDSON STREET represented by: Prevention 485 MADISON AVENUE 8 WEST 40TH STREET represented by: Amy L. Fox and Stuart Romanoff of Cruelty to Children MS. HIMMEL focuses represented by: represented by: Scott Vinett & Mitchell L. Konsker of of Cushman & Wakefield, Inc. 161 WILLIAM STREET on buying, selling David Schneck and Brendan Ramsey Feher & Jared Silverman Cushman & Wakefield, Inc. represented by: and financing Mahoney of CS Commercial of CB Richard Ellis, Inc. Hunter Global Investors LLC Mark Weiss & Nick Berger of buildings suited for Group, LLC Beyond The Rack USA, Inc. 485 MADISON AVENUE Newmark Knight Frank renovation and Raymond & Feldman 8 WEST 40TH STREET represented by: strategic Thirteenth Floor Group, LLC 110 EAST 59TH STREET represented by: Mike Norris of Cassidy Turley Kempen & Co. U.S.A., Inc. repositioning. Her 880 THIRD AVENUE Michael Leifer of 880 THIRD AVENUE represented by: Sopexa/Food & Wines From Millenium Realty Group LLC Eastern Pacific Apparel, Inc. represented by: particular expertise Robin Fisher of Newmark France, Inc. 8 WEST 40TH STREET James Gross & Paul M. Rhodes of is in creating legal, tax and financing Knight Frank 250 HUDSON STREET Fifty – One Inc. Williamson Pickett Gross, Inc. structures, and in negotiating represented by: 8 WEST 40TH STREET Jonathan Zizmor, MD, PC complicated transactions. RBSD Architects, P.C. Robert Goodman of represented by: 133 EAST 58TH STREET Chipotle Mexican Grill In addition to co-chairing 161 WILLIAM STREET Colliers International David Hoffman, Jr. & Wendy Miller represented by: of Colorado, LLC REBNY’s economic development represented by: of Cassidy Turley Francis Pollaro of Brentler, Inc. 1755 BROADWAY committee, Ms. Himmel has been a Merrill Roth of Newmark Knight Frank Pinnacle Medical PC represented by: member of its board of governors since 200 CHAMBERS STREET Capmark Finance Inc. Marchon Eyewear, Inc. Kenneth Hochhauser and QS Investors Holdings, LLC represented by: 485 MADISON AVENUE 8 WEST 40TH STREET Jeffrey Roseman 2001 and serves as assistant treasurer of 880 THIRD AVENUE Jeffrey Lagowitz & Joseph Messina represented by: represented by: of Newmark Knight Frank the executive committee. represented by: of Studley, Inc. Elizabeth Houley of Snezana Anderson & Leonard Michael Movshovich of Newmark Knight Frank DiMicelli of CB Richard Ellis, Inc. RAVE PCS of 57th St., Inc. CB Richard Ellis, Inc. Spa at Ease Corp. 205 WEST 57TH STREET AWARD Louis Smadbeck Broker Recognition 1516 FIRST AVENUE J.C. Fields Dental Studio, Inc. Ninepeaks Capital represented by: RECIPIENT ANDREW SINGER Mon Amour 2, Inc. 133 EAST 58TH STREET Mangement, LP Morris Sabbagh of TITLE Chairman and CEO, The Singer & 170 West 23rd STREET Cubit Corporation 880 THIRD AVENUE Kassin Sabbagh Realty Bassuk Organization represented by: 133 EAST 58TH STREET Gui Tepedino of Roberta Panos Edward W. Wilson, DDS NG & Lin Co, Inc. MR. SINGER Real Estate Jesan, LLC 133 EAST 58TH STREET 1516 FIRST AVENUE is 250 HUDSON STREET represented by: responsible for Sharde Harvey, DDS Sherry Patterson of Sherry Patterson Morehouse Design arranging mortgage 133 EAST 58TH STREET OMG 7th Avenue, Inc. Realty Group Associates, Inc. and mezzanine 170 West 23rd STREET 133 EAST 58TH STREET financing for major office and residential properties, with a 110 East 59th Street focus on apartments New York, NY 10022 created under the financial district 212-421-1300 residential conversion program. www.resnicknyc.com A member of REBNY’s board of governors, Mr. Singer received its Most Ingenious Finance Deal of the Year Award for the fourth time in 2008. AWARD George M. Brooker Management Executive of the Year RECIPIENT FRANK FREDA TITLE Executive managing director, Cushman & Wakefield Inc. MR. FREDA oversees facilities management services worldwide. He has held various positions during his 33 Proud to be a member of years with Cushman & Wakefield, starting in the legal department. He was most recently director of operations January 17, 2011 | Crain’s New York Business | 19 20110117-NEWS--0020-NAT-CCI-CN_-- 1/13/2011 5:29 PM Page 1 REPORT REAL ESTA TE Q: The office-leasing Q: The financial Q: The volume of Q: The 10th Q: Is the commercial market has been sector is not purchases of anniversary of the market more remarkably strong leasing up space office buildings Sept. 11 attacks likely to surprise & in terms of as it once did. was up hugely in is this year. Where on the upside or QAA volume. Will Will other sectors 2010 over hyper- will the market be the downside in landlords now fill the gap? depressed 2009 on the 15th 2011? Forecasts from start lifting rents? levels. What do anniversary, when six New York you expect this all the rebuilding real estate experts year? is done? Last year was stellar in terms of The financial sector remains a We would expect levels similar It is very difficult to predict that Given expectations that leasing activity, with nearly 22 key driver. In 2010, financial to those of 2010. Prices are still far in advance, but we saw demand-leasing velocity trends million square feet leased in firms accounted for 20% of the off at least 30% from their positive signs in all three major will continue, the surprise Manhattan. Several landlords leasing activity, with boutique peaks, so strong is a relative submarkets, with significant would be on the downside. If I have become more aggressive, firms making up most of the term. But we don’t expect a leasing activity in 2010. We’re knew how it would be so, it especially in the top midtown transactions. Further, several significant surge in “distressed expecting activity to continue wouldn’t be a surprise. But I buildings, where supply is more large financial institutions are sales” in 2011 that might in the next few years as the U.S. would guess that if we had a ROBERT limited. This is even more in the market for a total of over undermine those prices. and world economies continue major double-dip in the STILLMAN pronounced in smaller, highly 5 million square feet. We’re also to break out of the recession. economy, credit market freeze Executive vice improved space on floors with seeing continued growth in or significant reversal in the president, views.There’s 3% availability in health care, technology, equity markets, the second half CB Richard Ellis space above the 25th floor. education and entertainment. of 2011 could be affected. Over the last two quarters of Large financial firms were out Sales activity could be up 50% Ground zero will have the There will be a surprise on the 2010, we saw increases of about of the market in 2010, and or more. Credit availability will greatest concentration of state- upside. National economic 5.5% on an annualized basis in media, law, nonprofits, be good, and fundamentals will of-the-art buildings in New growth will be near the the average asking rent in education and technology were improve dramatically. Cap rates York. The space will be highly historical recovery rate, and the midtown north and 4.8% in quite active. Given recent are already low, so sales-price coveted, especially as major regulatory environment for midtown south. In the same changes in national fiscal and levels will rise only modestly; public transportation financial institutions and period, the average asking rent monetary policy, we expect that but sales volume will increase infrastructure is completed. business in general will MARK JACCOM declined by about 5.0% large financial firms will begin sharply. Market conditions will improve. And limited new- downtown. In 2011, we expect to take some space by late 2011. improve markedly for sales, property development over the CEO, tristate it to rise 5% to 10% in midtown Private equity firms and hedge which will encourage buyers to last decade will result in a region, Colliers International north and south, and to remain funds have been active and will take chances on distressed quicker return to a relatively flat downtown. become substantially more so. properties. tight supply-demand balance. Only selectively. Asking rents in During the recession, industries Volumes are up significantly, We anticipate that the On the upside. Strength in Manhattan rose in November such as government, education but we’re still far from the peak. downtown market will thrive, leasing activity should for a second straight month, and health services experienced Many of Manhattan’s most with a healthy mix of continue, as large companies in and midtown rents rose in the an uptick in leasing. With the active investors are the public commercial and residential the market are about to sign previous three months.The recovery under way, business REITs, which have raised properties. The new World leases. If we experience even a overall rise has been modest, but services have picked up some of enormous amounts of capital. Trade Center will be completed moderate upswing in JOSEPH we’re beginning to see the slack. We expect financial Distressed sales will put price and is expected to attract a employment, demand will HARBERT significant increases in asking firms to begin hiring again, and pressure on tertiary markets, diverse tenant base. The follow. With vacancy trending Chief operating rents in some premier buildings quite a few large financial but primary markets such as buildings being developed at lower and rents beginning to officer, NY metro in Manhattan. We expect that institutions are looking for Manhattan are less out of the site will command a rise, the office market will have region, Cushman & to stretch to the rest of the space right now. balance and are continuing to premium and will help increase another successful year. Wakefield Inc. market in 2011 and beyond. strengthen. overall asking rents downtown. I think that the increase in rents We see media, technology and With interest rates low, I think that ground zero will be I think that any dramatic will be seen primarily in the service companies all taking the investors worldwide want to a different paradigm. It will movement up or down would Plaza district or in the tower lead in leasing activity in 2011. invest in the U.S., particularly have millions of tourists, and be a surprise. The market will floors of trophy office Foreign banks will be another New York. That there is more lower Manhattan will have see modest to good growth, and properties. Certain select significant source of office demand than supply will completed its transformation Manhattan’s office sector will buildings might start to deals. However, domestic banks continue to make deals into a vibrant, 24/7 area. The see slow and steady increase rents for base floors, and financial-services competitive for the seller. Some train station will be up and improvement. We are just not PETER but the majority will stay where companies will not be leaders. banks may feel that current running, the new commercial seeing enough job growth to RIGUARDI they are and do deals. It’s a tale valuations are the best they can office buildings will be finished fuel a boom, and we’re not President, New York of two cities. do and act to dispose of some and fully leased, and the new seeing a surge in layoffs to region, Jones Lang distressed assets, but many are retail component will be open trigger a backward movement LaSalle not under pressure to act now. and thriving. in the market. Office leasing volume is not As Wall Street goes, so goes Large increases shouldn’t The market should be in Since most participants in the surprising, given that when a New York.That’s why it’s surprise anyone, given the another boom, with over- market believe things are lease expires, the tenant has to perplexing that our elected minuscule levels of last year. aggressive lending as well as getting better, the largest do something. If there’s 500 officials let the administration Rents will stabilize but won’t buying. Look for land to sell for surprise will be to the million square feet of office in Washington walk all over the appreciate to the extent that $1,000 a buildable square foot downside. Will politicians have space and you assume the “fat cat” bankers. Other they bail out building with and the average office building the guts to cut spending the average lease is for 10 years, objectives got in the way, but significant negative equity sale to be $1,500 a square foot. way that is needed? Will ROBERT there should be about 4.2 that should say something to positions. We’ll see more In the 1990s and 2000s, office public-sector union pensions be KNAKAL million feet a month. Less than New Yorkers.The base of distressed sales, but the supply- construction was well below reined in? Will job creation be Chairman, Massey that is reported each month. tenants here will continue to demand imbalance and low trend.This will lead to a severe achieved? I am optimistic about Knakal Realty Much of the activity in this become diversified, but the interest rates will continue to supply constraint as job growth what Gov. Andrew Cuomo can Services market is simply not reported. stronger the Street, the better. exert upward pressure on values. returns. do. Some landlords have started to Professional services and Going from nothing to The expectation is that the That will be largely hinge on raise rents, although market software firms have started to something is always an market will be flat to up. The job growth. With numerous support may not be broad. Such fill the void, as have foreign improvement. The spread initial benefits of the recovery monetary and fiscal initiatives decisions will largely be based companies. Having the dollar at between buyers and sellers is are taking hold; the outcome under way, the prospect for the on whether absorption an approachable level provides starting to narrow, and a further will depend on whether these upside surprise seems good. continues throughout the foreigners with an open uptick in volume will provide efforts are sustainable. market and confidence emerges invitation to the U.S. market. confidence. Banks aren’t that the economy is expanding. pressured to divest assets, and BARRY GOSIN their ability to extend CEO, Newmark obligations has benefited the Knight Frank commercial mortgage-backed securities market. 20 | Crain’s New York Business | January 17, 2011 20110117-NEWS--0021-NAT-CCI-CN_-- 1/14/2011 1:44 PM Page 1 REPORT REAL ESTA TE Real Capital Analytics’ Top Property Sales Biggest commercial transactions in NYC in 2010, ranked by price Sq. ft. or Address/ # of units/ property type/ Sale price price per Close Buyer’s representative/ submarket (in millions) sq. ft. or unit date Buyer Seller seller’s representative TOP FOUR SALES 111 Eighth Ave. $1,770.0 2,961,071 12/1 Google Jamestown/Taconic Investment Partners/ CBRE 1 Office $598 NYS Common Retirement Fund Eastdil Secured Midtown South 1 1221 Sixth Ave. (McGraw-Hill Building) $1,280.0 2,600,000 5/14 Canada Pension Plan SL Green Realty Corp. n/a 2 Office $492 Investment Board n/a Midtown West 2 55 E. 52nd St. (Park Avenue Plaza) $700.0 1,230,000 7/7 Rockpoint Group Fisher Brothers n/a 3 Office $569 CBRE Midtown East 3 299 Park Ave. $687.0 1,160,000 1/9 Rockpoint Group UBS Bank Corp. n/a 4 Office $592 CBRE Midtown East 4 340 Madison Ave. $570.0 750,000 6/10 RXR Realty Broadway Partners/ n/a 5 Office $760 D.E. Shaw Group CBRE Midtown East LIST RANK 1 4 1540 Broadway (Bertelsmann Building) $520.0 906,287 11/8 EDGE Fund Advisors/ CB Richard Ellis Investors n/a ADDRESS 6 Office condo $574 HSBC CBRE 111 Eighth Ave. Midtown West PRICE PER SQ. FT. 1330 Sixth Ave. $400.0 535,600 12/29 RXR Realty/ Otéra Capital n/a $598 7 Office $747 Safra family/ CBRE Midtown West PSP Investments 125 Park Ave. $330.0 603,433 8/3 SL Green Realty Corp. Shorenstein Properties n/a 8 Office $547 CBRE Midtown East 452 Fifth Ave. $330.0 865,000 4/13 IDB Group/ HSBC Holdings CBRE 9 Office $382 Midtown Equities Jones Lang LaSalle Midtown West 5 250 E. 57th St. $320.0 900,000 4/28 Worldwide Group NYC Educational n/a 10 Development site $356 Construction Fund CBRE Midtown East 440 Park Ave. (former Drake Hotel) $305.3 600,0006 1/28 CIM Group Macklowe Properties n/a 11 Development site $509 n/a Midtown East 510 Madison Ave. $275.0 350,000 9/24 Boston Properties Macklowe Properties n/a LIST RANK 2 12 Office $786 Cushman & Wakefield Inc.7 Midtown East ADDRESS 700 8th Ave. (Milford Plaza Hotel) $230.0 1,300 11/2 Rockpoint Group/ Milstein family n/a 1221 Sixth Ave. 13 Hotel $176,923 Highgate Holdings Hodges Ward Elliott PRICE PER SQ. FT. Midtown West $492 1466 Broadway (Six Times Square) $214.8 298,695 6/17 Walton Street Capital/ Dubai World Okada & Co. 14 Office $719 Ashkenazy Acquisition Corp. Jones Lang LaSalle Midtown West 600 Lexington Ave. (Manhattan Tower) $193.0 303,515 5/20 SL Green Realty Corp./ Hines Interests n/a 15 Office $636 Canada Pension Plan CBRE Midtown East Investment Board 685 Third Ave. $190.0 634,000 7/30 TIAA-CREF Pfizer Corp. n/a 16 Office $300 CBRE Midtown East 770 11th Ave. (Clinton Park) $189.7 330,000 8/4 Mercedes Benz USA Two Trees Management CBRE 17 Retail condo $575 n/a Midtown West 201 Park Ave. South (W Union Square) $185.2 270 8/31 Host Hotels & Resorts Inc./ LEM Capital n/a 18 Hotel $686,049 Dubai World n/a Midtown South LIST RANK 3 420 E. 54th St. (Rivertower) $181.5 323 1/29 Equity Residential Macklowe Properties n/a ADDRESS 19 Apartment $561,920 n/a 55 E. 52nd St. Midtown East PRICE PER SQ. FT. 680 Madison Ave. (Carlton House) $166.0 157 7/30 Angelo Gordon & Co./ Helmsley Estate n/a $569 02 Apartment $1,057,325 Extell Development CBRE Upper East Side 150 E. 86th St. (Lucida) $165.3 150,000 10/8 Vornado Realty Trust Extell Development/ n/a 21 Retail condo $1,102 Carlyle Group n/a Upper East Side 653-659 11th Ave. (Ink48) $162.5 222 9/10 Prudential RE Investors Horizen Global n/a 22 Hotel $731,966 n/a Midtown West 2 Court Square (CUNY Law School) $155.0 225,000 3/4 City University of New York Citigroup n/a 23 Office condo $689 n/a Astoria, Queens 1412 Broadway (Fashion Gallery) $152.5 400,000 12/7 Harbor Group International/ Murray Hill Properties/ n/a 42 Office $381 Migdal Insurance/ Principal RE Investors Jones Lang LaSalle Midtown West Menorah Mivtachim 777 Sixth Ave. $150.8 294 1/29 Equity Residential Macklowe Properties n/a LIST RANK 4 25 Apartment $512,925 n/a Midtown West ADDRESS Sale prices for partial-interest deals reflect 100% valuations. Development site square footage and price per square foot are based on buildable square feet. In case of tied figures, deals are ranked based on price per square foot or unit. n/a Not 299 Park Ave. available. 1-A 45% interest was traded. 2-A 49.9% interest was traded. 3-A 49.75% interest was traded. 4-A 49% interest was traded. 5-75-year leasehold. 6-Estimate. 7-Represented O’Connor in sale of mortgage position. Real Capital Analytics PRICE PER SQ. FT. Inc. is an independent research firm focused exclusively on capital investment markets for commercial real estate. RCA offers comprehensive information on activity in the industry. In addition to collecting transactional information for property sales and financings, it interprets the data, including capitalization rates, market trends, pricing and sales volume. The firm publishes a series of Capital Trends reports and offers an online service that provides real-time, global transactional market $592 information. Visit www.rcanalytics.com. January 17, 2011 | Crain’s New York Business | 21 20110117-NEWS--0022-NAT-CCI-CN_-- 1/13/2011 7:37 PM Page 1 FOR THE RECORD ● Housing Authority represented the tenant and the landlord. 54,973 shares of common stock at Seeks competitive sealed bids by 10 a.m. The asking rent was about $60 a square $16.83 between Dec. 22 and Dec. 29, in ABOUT THIS SECTION on Jan. 28 for the installation of vinyl- foot. a transaction worth $925,196. During composition floor tile in the Patterson the same period, he sold 54,973 shares at FOR THE RECORD is a weekly listing of information from the public record that Houses apartments in the Bronx. ● Blue Dog signed a lease for 1,300 prices ranging from $26.83 to $26.92, in can help businesspeople in the New York area find opportunities, potential Vendors may obtain and submit bid square feet at 825 Eighth Ave., a 47-story, a transaction worth $1,475,386. He now new clients and updates on competitors. documents at www.nyc.gov/ 1.7 million-square-foot building owned directly holds 148,288 shares. To ask questions or get more information on this section, contact Suzanne nychabusiness. Questions should be by George Comfort & Sons. Joshua Panara at [email protected]. directed to Sabrina Steverson at Roth and Scott Edlitz of ZE Realty ● Estée Lauder Co. (EL) (212) 306-6771 or sabrina.steverson@ Group represented the tenant. The Amy Digeso, executive vice president, nycha.nyc.gov. asking rent was about $85 a square foot. global human resources, exercised options on 20,000 shares of common stock at prices ranging from $34.00 to BANKRUPTCIES CONSTRUCTION SERVICES REAL ESTATE DEALS STOCK TRANSACTIONS $42.58 on Jan. 3, in a transaction worth ● Department of Design and Construction $751,506. Between Jan. 3 and Jan. 4, she The following listings are selected from the Seeks competitive sealed bids by 11 a.m. Companies that would like to have Following are recent insider transactions at sold 20,000 shares at prices ranging most recent available filings by companies on Jan. 27 for the installation of details of their recent transactions appear New York’s largest publicly held companies from $80.58 to $81.50, in a transaction seeking bankruptcy protection in the pedestrian ramps at designated locations in these listings should e-mail filed with the Securities and Exchange worth $1,619,371. She now directly Southern and Eastern Districts of New throughout Brooklyn. Bid documents descriptions following this format to Commission by executives and major holds 5,594 shares. York. Information was obtained from U.S. are available at www.nyc.gov/buildnyc. [email protected], with shareholders. Listings are in order of Bankruptcy Court records available on For more information, contact Ben “Real estate transaction” in the subject transaction value.The information was ● New York Community Bancorp Inc. Public Access to Court Electronic Records. Perrone at (718) 391-2614. line, or enter them online at obtained from Thomson Reuters. (NYB) Listings are in alphabetical order. crainsnewyork.com/submitadeal. Deals John M. Tsimbinos, director, sold ● Department of Design and Construction are listed in order of square footage. ● Loral Space & Communications Inc. 100,000 shares of common stock at ● Cuba Tropical Inc. Seeks competitive sealed bids by 2 p.m. (LORL) prices ranging from $18.00 to $18.75 455 Claremont Parkway, Bronx on Feb. 8 for the renovation of the COMMERCIAL Michael B. Targoff, president, vice between Dec. 15 and Dec. 22, in a Filed for Chapter 7 bankruptcy Choicirciati Cultural Center in ● Macy’s added 56,200 square feet at chairman and CEO, exercised options transaction worth $1,837,500. He now protection on Jan. 11. The filing cites Manhattan. There will be a mandatory 1440 Broadway, a 25-story, 740,000- on 525,000 shares of common stock at directly holds 1,469,400 shares. estimated liabilities of $1,000,001 to pre-bid conference at 10 a.m. on Feb. 1 square-foot building owned by Monday $26.92 on Jan. 3, in a transaction worth $10 million and estimated assets of at the Choicirciati Cultural Center, Properties.The company, which is $14,130,375. ● Cognizant Technology Solutions Corp. $1,000,001 to $10 million. Among the 64 E. Fourth St. Bid documents will not moving to the eighth and ninth floors, (CTSH) creditors with the largest unsecured be sold after Jan. 31. For more will occupy a total of 161,000 square feet. ● WebMD Health Corp. (WBMD) Steven E. Schwartz, senior vice claims are Justa Perez, owed information, contact Ben Perrone at Scott Gottlieb and Michael Laginestra Anthony Vuolo, chief operating officer president, general counsel and secretary, $418,697.15; Azteca Milling, owed (718) 391-2614. of CB Richard Ellis represented the and chief financial officer, exercised exercised options on 15,655 shares of $381,997.27; and Ricardo Duarte, owed tenant, while Jordan Berger of Monday options on 225,000 shares of common common stock at prices ranging from $255,351.01. ● Department of Parks & Recreation Properties negotiated in-house.The stock at prices ranging from $17.50 to $18.21 to $40.33 between Dec. 27 and Seeks competitive sealed bids by 10:30 asking rent wasn’t disclosed. $23.61 on Dec. 27, in a transaction Dec. 29, in a transaction worth ● Long Island Business a.m. on Feb. 9 for the construction of a worth $4,236,890. $410,166. Between Dec. 22 and Dec. 350 Northern Boulevard, L.I. children’s garden on La Guardia Place ● Virgo Business Centers signed a 10- 29, he sold 20,655 shares at prices Filed for Chapter 11 bankruptcy between Bleecker and West Third year lease for 41,300 square feet at 575 ● Och-Ziff Capital Management Group ranging from $72.88 to $73.98, in a protection on Jan. 5. The filing cites streets. Bid documents can be purchased Lexington Ave., a 35-story, 700,000- (OZM) transaction worth $1,518,707. He now estimated liabilities of $1,000,001 to in the blueprint room, Olmsted Center, square-foot building owned by Jeffrey C. Blockinger, chief legal officer, directly holds 209,856 shares. $10 million and estimated assets of Flushing, Queens, from 8 a.m. to 3 p.m. Silverstein Properties. The company will chief compliance officer, secretary and $500,001 to $1 million. Among the For more information, contact Juan occupy the fourth floor. Paul Wexler of managing director, sold 221,850 shares Lakshmi Narayanan, vice chairman and creditors with the largest secured claims Alban at (718) 760-6771 or Corcoran Wexler Properties represented at prices ranging from $15.26 to $15.48 director, exercised options on 22,500 are Ridgewood Savings Bank, owed [email protected]. the tenant, while Roger Silverstein and between Jan. 3 and Jan. 4, in a shares of common stock at $2.37 $1,143,418.28, and the New York City Jeremy Moss negotiated on behalf of the transaction worth $3,417,301. between Dec. 27 and Dec. 29, in a Water Board, owed $8,648.80. ● Health and Hospitals Corp. landlord in-house. The asking rent was transaction worth $53,325. During the Seeks competitive sealed bids by 3 p.m. in the mid-$40s a square foot. ● ABM Industries Inc. (ABM) same period, he sold 22,500 shares at ● Manhasset Holdings on Feb. 15 for the painting and James P.McClure, executive vice prices ranging from $73.21 to $73.98, in 49 Sunhill Road, L.I. plastering of the A-building, fifth floor, ● Tzell Travel signed a renewal and president and president of ABM a transaction worth $1,658,775. He now Filed for Chapter 11 bankruptcy of the Kings County Hospital Center. expansion lease adding 16,200 square Janitorial Services, exercised options on directly holds 1,560,000 shares. Ⅲ protection on Jan. 6.The filing cites Pre-bid meetings and walk-throughs feet at 119 W. 40th St., a 22-story, estimated liabilities of $1,000,001 to $10 will be held at 10:30 a.m. on Jan. 20 and 340,200-square-foot building owned by million and estimated assets of $0 to at 10:30 a.m. on Jan. 25 in the facilities CWCapital. The company, which $50,000. Among the creditors with the management E-building, conference already occupies 48,000 square feet on DEALS ROUNDUP largest unsecured claims are Paul Petras, room E-2236, second floor. Prospective the 13th through 15th floors, as well as owed $2,500; Paul Demetriou Esq., owed bidders are encouraged to buy the bid the penthouse and part of the basement, TRANSACTION SIZE $2,000; and Segundo Loja, owed $2,000. documents before doing a walk- will move into the 12th floor. Mark COMPANY (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE through. For more information, contact Jaccom, Robert Tunis and Howard ● Shivshakti Realty Rup Bhowmick at (718) 245-2122 or Cross of Colliers International Metropolitan Life $1,499.1 Not disclosed GCI 3867 Shore Parkway, Brooklyn [email protected]. represented the tenant, while Tara Global Funding I Filed for Chapter 11 bankruptcy Stacom and David Green of Cushman WebMD Health Corp. $388.0 Not disclosed GCI protection on Jan. 7. The filing cites ● New York Police Department & Wakefield negotiated on behalf of the Rafaella Apparel $202.4 Perry Ellis SB M&A estimated liabilities of $1,000,001 to Seeks competitive sealed bids by 11 a.m. landlord. The asking rent wasn’t Group Inc. International Inc. $10 million and estimated assets of $0 to on Feb. 1 for the furnishing of all labor disclosed. Interlace Medical Inc. $125.0 Hologic Inc. SB M&A $50,000. Among the creditors with the and materials for the firing range AdKeeper Inc. $35.0 Oak Investment Partners, GCI largest unsecured claims are Krishna conversion at the 122nd Street Precinct ● Marketers International Group of Doll Capital Management, Management, owed $400,000; New station house. A mandatory pre-bid Companies signed a lease for 5,400 The New York Times Co. York Hotel Trades Council & Hotel conference will be held at 10 a.m. on square feet at 250 Hudson St., a 15-story, (Manhattan), Spark Association of New York City Benefit, Jan. 19 at the station house, 2320 360,000-square-foot building owned by Capital, First Round owed $56,805; and the New York City Hylan Blvd., New Dorp. For more Jack Resnick & Sons. The company now Capital, True Ventures, Betaworks (Manhattan), Department of Finance, owed $37,570. information, contact Stephanie Gallop occupies 40,000 square feet. Robert Lerer Ventures (Manhattan), at (646) 610-5225 or Romano of Jones Lang LaSalle individual investors ● TE-MED Realty Corp. [email protected]. represented the tenant, while Dennis Liberata Ltd. $31.0 Endless, management FB M&A 1149-1151 Castleton Ave., Staten Brady and Brett Greenberg represented of Liberata Ltd. Island GOODS AND SERVICES the landlord in-house. The asking rent Filed for Chapter 7 bankruptcy ● Department of Education per square foot was in the $40s. Bannockburn Green $29.3 P. O’b. Montgomery SB M&A Retail Center & Co., AREA Property protection on Jan. 5. The filing cites Seeks competitive sealed bids by 4 p.m. Partners (Manhattan) estimated liabilities of $1,000,001 to on Feb. 16 for the repair and servicing of RETAIL ● Tapjoy Inc. $21.0 InterWest Partners, North GCI $10 million and estimated assets of security systems. A pre-bid conference Tommy Bahama signed a 12-year lease Bridge Venture Partners, $500,001 to $1 million. The creditor will be held at 2 p.m. on Jan. 19 at for 8,500 square feet at 551 Fifth Ave.,a Rho Capital Partners Inc. with the largest unsecured claim is 65 Court St., conference room 411 A/B, 38-story, 430,000-square-foot building (Manhattan), D.E. Shaw Charles Dilea, owed $480,000. Brooklyn. For more information, contact owned by The Feil Organization. The Venture Capital the vendor hotline at (718) 935-2300 or firm will occupy the ground, mezzanine Ziopharm $11.6 Intrexon Corp. GCI [email protected]. and basement floors. Amira Yunis of Oncology Inc. GOVERNMENT CONTRACT Newmark Knight Frank represented the [x+1] Inc. $10.0 Advanced Technology GCI ● OPPORTUNITIES Department of Education tenant, while French Partners and New Ventures, Blue Chip Seeks competitive sealed bids by 4 York French Building Co.-Investors Venture Co., Hudson Following are selected contract p.m. on Feb. 23 for boiler repairs. represented the landlord in-house. The Ventures (Manhattan), opportunities recently announced by New There will be a pre-bid conference at asking rent was $450 a square foot. Intel Capital York City agencies.To learn how to sell 2 p.m. on Jan. 26 at 65 Court St., fourth Selected deals announced for the week ended Jan. 9 involving companies in metro New York. goods and services to city government, visit floor, conference room 411 A/B, ● Smart Fashion signed a lease for 2,000 FB M&A: Financial buyer M&A represents a minority or majority acquisition of existing www.nyc.gov/selltonyc. For a searchable Brooklyn. For more information, square feet at 149B W. 36th St., a shares of a company with the participation of a financial buyer. GCI: Growth capital investment contact the vendor hotline at building owned by Foremost Real represents new money invested in a company for a minority stake. SB M&A: Strategic buyer database of current procurement notices, M&A represents a minority or majority acquisition of existing shares of a company without the visit www.nyc.gov/cityrecord. Listings are (718) 935-2300 or Estate. Winick Realty’s Tatiana Jung- participation of a financial buyer. source: capitaliq alphabetical by category and department. [email protected]. Voevodina and Richard Smith 22 | Crain’s New York Business | January 17, 2011 nb03p23-24cl.qxp 1/14/11 3:20 PM Page 23 PUBLIC & LEGAL NOTICES COMMERCIAL REAL ESTATE/AUCTION Notice of Qualification of H.C. Starck Notice of Qualification of Morgan Notice of Qualification of RLJ III - DBT North American Trading, LLC. Stanley HedgePremier/Millennium Metropolitan Manhattan, LP. Authority BANKRUPTCY AUCTION Authority filed with NY Dept. of State USA II LP. Authority filed with NY filed with Secy. of State of NY (SSNY) on 12/29/10. Office location: NY Dept. of State on 11/8/10. Office on 12/14/10. Office location: NY East Beach Development Land County. Princ. bus. addr.: 45 Industrial location: NY County. Princ. bus. County. LP formed in Delaware (DE) Place, Newton, MA 02461. LLC addr.: 522 Fifth Ave., 13th Fl., NY, NY on 12/8/10. SSNY designated as Galveston, Texas Adjacent to Palisade Palms formed in DE on 9/29/09. NY Sec. of 10036. LP formed in DE on 11/4/10. agent of LP upon whom process State designated agent of LLC upon NY Sec. of State designated agent against it may be served. SSNY shall Wednesday, February 23 at 2:00 p.m. whom process against it may be of LP upon whom process against it mail process to: c/o National Registered served and shall mail process to: c/o may be served and shall mail Agents, Inc., 875 Avenue of the Invest in a community on the Gulf of Mexico. 15± acres of land CT Corporation System, 111 8th process to: c/o CT Corporation Americas, Ste. 501, NY, NY 10001, adjoin Palisade Palms, a Galveston high-rise development with 288 Ave., NY, NY 10011, regd. agent System, 111 8th Ave., NY, NY 10011, also the registered agent. DE address upon whom process may be served. regd. agent upon whom process may of LP: 160 Greentree Dr., St 101, condominium units that are essentially sold out. Acreage will be sold as DE addr. of LLC: 1209 Orange St., be served. DE addr. of LP: 1209 Dover, DE 19904. Name/address of a whole or in four tracts. (U.S. Bankruptcy Case #10-80395-H3-11.) Wilmington, DE 19801. Cert. of Orange St., Wilmington, DE 19801. genl. ptr. available from SSNY. Cert. Auction Location: Central Tower, Four Oaks Place Of ce Complex Form. filed with DE Sec. of State, Name/addr. of genl. ptr. available of LP filed with DE Secy. of State, 401 Federal St., Dover, DE 19901. from NY Sec. of State. Cert. of LP 401 Federal St., Ste. 4, Dover, DE Auditorium, 1st Floor Purpose: any lawful activity. filed with DE Sec. of State, 401 19901. Purpose: any lawful activities. 1330 Post Oak Blvd. Federal St., Dover, DE 19901. Houston, TX 77056 Purpose: any lawful activity. Notice of Formation of Nest Two Bee K2 SPIRITS IMPORTERS, LLC, a In order to participate in the auction, pre-bids and nancials are required by Feb. 16, 2011. domestic Limited Liability Company LLC. Articles of Org. filed with Secy. Visit www.AuctionGalveston.com for bidding procedures, terms & conditions. (LLC), filed with the Sec of State of JLOW LLC Articles of Org. filed NY of State of NY (SSNY) on 12/21/10. Scott Swenson TX Auc#7809 TX Broker #0425652 7% Buyers Premium NY on 9/22/10. NY Office location: Sec. of State (SSNY) 6/7/2010. Office loc.: New York Co. SSNY des- New York County. SSNY is desig- Office in NY Co. SSNY desig. agent ignated as agent of LLC upon whom Visit www.AuctionGalveston.com for more information. nated as agent upon whom process of LLC upon whom process may be process against it may be served. against the LLC may be served. served. SSNY shall mail copy of SSNY shall mail process to the LLC, SSNY shall mail a copy of any process to c/o William J. Lavelle, Jr., Attn: Debra Zegelstein, 166 East 63rd process against the LLC served 81 Barrow St., NY, NY 10014. St., Unit 2B, New York, NY 10065. REQUEST FOR TELECOMMUNICATIONS upon him/her to The LLC, 64 Fulton Purpose: Any lawful purpose. Purpose: any lawful act or activity. St., Ste. 304, New York, NY 10038. General Purposes. PROPOSALS Rondout Capital Management LLC, NOTICE OF FORMATION of Lori Arts. Of Org.filed with SSNY on Farber Designs LLC. Arts of Org filed The Acadian Group LLC filed Arts of 10/13/10. Off. Loc.: NY County, SSNY with the Secy of State of NY (SSNY) Org with the Secy of State of NY designated as agent of LLC upon on 10/26/10. Office loc: NY Cty. (SSNY) on 7/2/2010. Located in NY whom process against it may be SSNY designated as an agent upon Co. SSNY has been designated as served. SSNY shall mail a copy of whom process may be served and agent upon whom process against it process to: The LLC, 595 Madison shall mail a copy of any process to: may be served and SSNY shall mail Ave. 35th/FL, New York, NY 10022. 101 N. Brand Blvd, 10th Fl, Glendale, a copy of any process against the Purpose: to engage in any lawful act. CA 91203. Principal business LLC to princ. business address 304 address: 200 W 72nd St, 3K, NY, NY Park Ave. So., 11th Fl., NY, NY 10023. Purpose: any lawful acts. 10010. Purpose: any lawful acts. Notice of Formation of Gotham 149 Realty LLC. Arts. of Org. filed with Notice of Formation of ETS CAPITAL HOME 127 LLC, a domestic Limited Secy. of State of NY (SSNY) on 11/30/10. Office location: NY County. II, LLC. Arts. of Org. filed with Secy. Liability Company (LLC), filed with of State of NY (SSNY) on 01/04/11. the Sec of State of NY on 11/18/10. SSNY designated as agent of LLC upon whom process against it may Office location: NY County. SSNY NY Office location: New York County. designated as agent of LLC upon SSNY is designated as agent upon be served. SSNY shall mail process to: c/o The LLC, 1430 Broadway, whom process against it may be whom process against the LLC may served. SSNY shall mail process to be served. SSNY shall mail a copy Ste. 1103, NY, NY 10018. Purpose: any lawful activity. Timothy Terry, 667 Madison Ave., of any process against the LLC 24th Fl., NY, NY 10065. Purpose: served upon him/her to The LLC, Any lawful activity. 2080 Lexington Ave, Lobby, NY, NY Notice of Formation of Jemal Children 10035. General Purposes. LLC. Articles of Org. filed with Secy. of State of NY (SSNY) on 12/07/10. Notice of Formation of LINCOLN 63 Notice of Formation of Halo Capital Office loc.: New York Co. SSNY des- PARKING LLC. Arts. of Org. filed VI, LLC. Arts. of Org. filed with Secy. ignated as agent of LLC upon whom with Secy. of State of N.Y. (SSNY) on of State of NY (SSNY) on 12/31/10. process against it may be served. 12/23/10. Office location: New York Office location: NY Co. SSNY desig- SSNY shall mail process to the LLC, County. SSNY designated as agent of nated as agent of LLC upon whom c/o Robinson Brog, et al., Attn: David LLC upon whom process against it PUBLIC & LEGAL NOTICES process against it may be served. Blumenthal, Esq., 875 Third Ave., 9th may be served. SSNY shall mail SSNY shall mail process to: Joe Fl., New York, NY 10022-0123. process to: c/o Icon Parking Systems, Robinson, 832 Broadway #6, NY, NY Purpose: any lawful act or activity. 211 East 38th Street, New York, NY 10016. Purpose: any lawful activity. Notice of Qualification of Global Notice of Formation of AM STERN 10003. Purpose: any lawful activities. Demolition & Recycling, LLC. CAPITAL, LLC. Arts. of Org. filed with Notice of Qual. of Dinvest Access 90 Authority filed with NY Dept. of State Secy. of State of NY (SSNY) on Notice of Formation of a Limited (US) L.P. filed under the original name Notice of Formation of PANTHER on 11/16/10. Office location: NY 01/06/11. Office location: NY County. Liability Company (LLC): Name: Dinvest Access 90, L.P., Auth. filed EQUIP LP. Cert. of LP filed with Secy. County. LLC formed in DE on SSNY designated as agent of LLC EVENTUS PARTNERS LLC, Articles Sec’y of State (SSNY) 9/28/10. Office of State of NY (SSNY) on 12/16/10. 7/14/04. NY Sec. of State designated upon whom process against it may of Organization filed with the loc.: NY County. LP org. in DE Office location: NY County. Princ. agent of LLC upon whom process be served. SSNY shall mail process Secretary of State of New York 9/27/10. SSNY desig. as agent of LP office of LP: BCS Equip GP, Inc., against it may be served and shall to Timothy P. Terry, 667 Madison (SSNY) on 10/22/2010. Office loca- upon whom process against it may 333 Seventh Ave., 3rd Fl., NY, NY mail process to: c/o CT Corporation Ave., 24th Fl., NY, NY 10065. tion: New York County. SSNY has be served. SSNY shall mail copy of 10001. Latest date on which the LP System, 111 8th Ave., NY, NY 10011, Purpose: Any lawful activity. been designated as agent of the LLC proc. to 30 Rockefeller Plaza, 27th Fl., may dissolve is 12/31/2030. SSNY regd. agent upon whom process may upon whom process to: C/O EVEN- NY, NY 10122. DE off. addr.: CSC, designated as agent of LP upon be served. DE addr. of LLC: 1209 TUS PARTNERS LLC, 1583 1st Ave 2711 Centerville Rd., Wilmington, whom process against it may be CHELSEA 100 GARAGE LLC, a Orange St., Wilmington, DE 19801. domestic Limited Liability Company Apt. 4C, New York, NY 10028. DE 19808. Cert. of LP on file: SSDE, served. SSNY shall mail process to Cert. of Form. filed with DE Sec. of Purpose: Any Lawful Purpose. Latest Townsend Bldg., Dover, DE 19901. the LP at the addr. of its princ. office. (LLC), filed with the Sec of State of State, 401 Federal St., Dover, DE NY on 12/9/10. NY Office location: date upon which LLC is to dissolve: Name/addr. of each gen. ptr. avail. at Name and addr. of each general 19901. Purpose: any lawful activity. No specific date. SSNY. Purp.: any lawful activities. partner are available from SSNY. New York County. SSNY is designated Purpose: Any lawful activity. as agent upon whom process against Notice of Qualification of Inland the LLC may be served. SSNY shall Notice of Qualification of TIEDEMANN Notice of Qualification of Honua Fifth Diversified Real Estate Services LLC. mail a copy of any process against WEALTH MANAGEMENT GP, LLC. Avenue LLC. Authority filed with NY Notice of Qualification of Master Authority filed with NY Dept. of State the LLC served upon him/her to Authority filed with Secy. of State of NY Dept. of State on 5/22/07. Office Money LLC. Authority filed with NY on 12/6/10. Office location: NY Steinberg & Pokoik Management (SSNY) on 12/21/10. Office location: location: NY County. Princ. bus. Dept. of State on 11/15/10. Office County. Princ. bus. addr.: 2901 Corp., 575 Madison Ave., 7th Fl., NY, NY County. LLC formed in Delaware addr.: c/o Cozen O’Connor, 277 Park location: NY County. Princ. bus. Butterfield Rd., Oak Brook, IL 60523. NY 10022. General Purposes. (DE) on 12/03/10. Princ. office of LLC: Ave., NY, NY 10172. LLC formed in addr.: 40 E. 52nd St., NY, NY 10022. LLC formed in DE on 8/8/08. NY Sec. 520 Madison Ave., 26th Fl., NY, NY DE on 5/17/07. NY Sec. of State LLC formed in DE on 8/29/02. NY of State designated agent of LLC 10022. SSNY designated as agent of designated agent of LLC upon whom Sec. of State designated agent of upon whom process against it may FIVE POINTS REMODELING LLC, a LLC upon whom process against it process against it may be served and LLC upon whom process against it be served and shall mail process to: domestic Limited Liability Company may be served. SSNY shall mail shall mail process to: c/o CT may be served and shall mail process c/o CT Corporation System, 111 8th (LLC), filed with the Sec of State of NY process to Corporation Service Co., Corporation System, 111 8th Ave., NY, to: c/o CT Corporation System, 111 Ave., NY, NY 10011, regd. agent on 11/30/10. NY Office location: New 80 State St., Albany, NY 12207-2543. NY 10011, regd. agent upon whom 8th Ave., NY, NY 10011, regd. agent upon whom process may be served. York County. SSNY is designated as DE addr. of LLC: 1201 N. Market St., process may be served. DE addr. of upon whom process may be served. DE addr. of LLC: c/o The Corporation agent upon whom process against Ste. 1406, Wilmington, DE 19801. Arts. LLC: The Corporation Trust Co., 1209 DE addr. of LLC: 100 Bellevue Pkwy., Trust Co., 1209 Orange St., the LLC may be served. SSNY shall of Org. filed with Secy. of State of Orange St., Wilmington, DE 19801. Wilmington, DE 19809. Cert. of Wilmington, DE 19801. Cert. of Form. mail a copy of any process against DE, Div. of Corps., John G. Townsend Cert. of Form. filed with DE Sec. of Form. filed with DE Sec. of State, filed with DE Sec. of State, 401 the LLC served upon him/her to The Bldg., 401 Federal St., Dover, DE State, 401 Federal St., Dover, DE 401 Federal St., Dover, DE 19901. Federal St., Dover, DE 19901. LLC, 141 E. 33rd St., Apt. 3B, NY, 19901. Purpose: Any lawful activity. 19901. Purpose: any lawful activity. Purpose: any lawful activity. Purpose: any lawful activity. NY 10016. General Purposes. January 17, 2011 | Crain’s New York Business | 23 nb03p23-24cl.qxp 1/14/11 1:16 PM Page 24 PUBLIC & LEGAL NOTICES Notice of Qualification of RealTick Notice of Qualification of ACE Bakery, Notice of Qualification of DYNAMIC Notice of Qualification of 25 CSH Notice of Qualification of WTC Tower 1 LLC. Authority filed with Secy. of LLC. Authority filed with NY Dept. of CREDIT ANALYTICS, LLC. Authority OPERATING LLC. Authority filed with LLC. Authority filed with NY Dept. of State of NY (SSNY) on 12/09/10. State on 11/18/10. Office location: filed with Secy. of State of NY Secy. of State of NY (SSNY) on State on 11/29/10. Office location: Office location: NY County. LLC NY County. Princ. bus. addr.: 50 (SSNY) on 12/07/10. Office location: 11/30/10. Office location: NY County. NY County. LLC formed in DE on formed in Delaware (DE) on Maplehurst Dr., Brownsburg, IN NY County. LLC formed in Delaware LLC formed in Delaware (DE) on 9/2/10. NY Sec. of State designated 11/19/10. Princ. office of LLC: 1633 46112. LLC formed in DE on 10/14/10. (DE) on 09/25/06. Princ. office of LLC: 11/24/10. SSNY designated as agent agent of LLC upon whom process Broadway, 48th Fl., NY, NY 10019. NY Sec. of State designated agent of Attn: James K. Finkel, 1500 Broadway, of LLC upon whom process against it against it may be served and shall SSNY designated as agent of LLC LLC upon whom process against it Ste. 1107, NY, NY 10036. SSNY des- may be served. SSNY shall mail mail process to the principal business upon whom process against it may may be served and shall mail process ignated as agent of LLC upon whom process to Irwin A. Horowitz, Esq., addr.: The Port Authority of New York be served. SSNY shall mail process to: c/o CT Corporation System, 111 process against it may be served. Hartz Mountain Industries, Inc., 400 and New Jersey, 225 Park Ave. So., to c/o Corporation Service Co. 8th Ave., NY, NY 10011, regd. agent SSNY shall mail process to the LLC Plaza Dr., Secaucus, NJ 07096. DE 15th Fl., NY, NY 10003, Attn: Darrell (CSC), 80 State St., Albany, NY upon whom process may be served. at the princ. office of the LLC. DE addr. of LLC: RL&F Service Corp., Buchbinder, General Counsel. DE 12207-2543. DE addr. of LLC: c/o DE addr. of LLC: 1209 Orange St., addr. of LLC: c/o National Registered One Rodney Sq., 10th Fl., addr. of LLC: 1209 Orange St., CSC, 2711 Centerville Rd., Ste. 400, Wilmington, DE 19801. Cert. of Form. Agents, Inc., 160 Greentree Dr., Ste. Wilmington, New Castle Cnty., DE Wilmington, DE 19801. Cert. of Wilmington, DE 19808. Arts. of Org. filed with DE Sec. of State, Federal & 101, Dover, DE 19904. Arts. of Org. 19801. Arts. of Org. filed with Secy. of Form. filed with DE Sec. of State, filed with Secy. of State, DE Div. of Duke of York Sts., Dover, DE 19901. filed with Secy. of the State of DE, State of DE, 401 Federal St., Ste. 4, 401 Federal St., Dover, DE 19901. Corps., John G. Townsend Bldg., Purpose: any lawful activity. Corp. Dept., Loockerman & Federal Dover, DE 19901. Purpose: Any Purpose: any lawful activity. 401 Federal St., Ste. 4, Dover, DE Sts., Dover, DE 19901. Purpose: Any lawful activity. 19903. Purpose: Any lawful activity. Notice of Formation of GOOD THURS- lawful activity. NOTICE OF FORMATION of Varick DAY LLC. Arts. of Org. filed with Secy. Notice of Formation of 16 EAST 73RD Asset Management LLC. Arts of Org Notice of Formation of RUSTY CHIP, of State of N.Y. (SSNY) on 10/21/10. Notice of Formation of 7E86 REALTY STREET LLC. Arts. of Org. filed with filed with the Secy of State of NY LLC. Arts. of Org. filed with Secy. Office location: New York County. LLC. Arts. of Org. filed with Secy. of Secy. of State of NY (SSNY) on (SSNY) on 9/23/10. Office loc: NY of State of NY (SSNY) on 11/23/10. SSNY designated as agent of LLC State of NY (SSNY) on 12/15/10. 12/17/10. Office location: NY County. County. SSNY has been designated Office location: NY County. SSNY upon whom process against it may Office location: NY County. Princ. SSNY designated as agent of LLC as an agent upon whom process may designated as agent of LLC upon be served. SSNY shall mail process office of LLC: 770 Lexington Ave., upon whom process against it may be served and shall mail a copy of any whom process against it may be to: c/o Hirschen Singer & Epstein LLP, 18th Fl., NY, NY 10065. Latest date be served. SSNY shall mail process process to: 19 Beach St, #3 NY, NY served. SSNY shall mail process to 902 Broadway, 13th Fl., New York, NY on which the LLC may dissolve is to: c/o Brittany Management Corp., 10013. Principal business address: Nancy H. Feinberg, 131 Prince St., 10010. Purpose: any lawful activity. 12/31/2035. SSNY designated as 14 E. 73rd St., Ste. 1A, NY, NY 10021. 17 State St., Ste 3800 NY, NY 10004. #3, NY, NY 10012. Purpose: Any agent of LLC upon whom process Purpose: any lawful activity. Purpose: any lawful acts. lawful activity. against it may be served. SSNY JOAN MERRILL LLC Articles of Org. shall mail process to the LLC at the Notice of Formation of LB ONE LLC. filed NY Sec. of State (SSNY) addr. of its princ. office. Purpose: LEGEND FUTURES, LLC, a domestic Arts. of Org. filed with Secy. of State Notice of Formation of Renatus 12/15/2010. Office in NY Co. SSNY Any lawful activity. Limited Liability Company (LLC), filed of NY (SSNY) on 12/10/10. Office Southgate LLC. Arts. of Org. filed desig. agent of LLC upon whom with the Sec of State of NY on location: NY County. Princ. office of with Secy. of State of NY (SSNY) on process may be served. SSNY 11/3/10. NY Office location: New York Notice of Formation of Dan’s Papers LLC: 482 Woodlands Rd., Harrison, 5/10/10. Office location: NY County. shall mail copy of process to 1435 County. SSNY is designated as Holdings, LLC formed on 9/1/10, NY 10528. SSNY designated as SSNY designated as agent of LLC Lexington Ave., Apt. 2F, NY, NY agent upon whom process against name amended to Dan’s Papers, LLC agent of LLC upon whom process upon whom process against it may 10128, which is also the principal the LLC may be served. SSNY shall on 9/29/10. Articles of Org. filed with against it may be served. SSNY shall be served. SSNY shall mail process business location. Purpose: Any mail a copy of any process against Secy. of State of NY (SSNY). Office mail process to the LLC, c/o Donna to: c/o Alter Mantel, 90 Park Avenue, lawful purpose. the LLC served upon him/her to The location: NY County. SSNY designated Lagani at the princ. office of the LLC. 35th Fl., NY, NY 10016, Attn: LLC, 45 Broadway, 32nd Fl., NY, NY as agent of LLC whom process Purpose: Any lawful activity. Lawrence Hansen, Esq.. Purpose: 10006. General Purposes. any lawful activity. Notice of Qual. of MREP VII-T H2, LLC, against it may be served. SSNY shall Auth. filed Sec’y of State (SSNY) mail a copy of process to the LLC, Notice of Formation of ATTO, LLC. 7/30/10. Office loc.: NY County. LLC 664 EIGHTH AVE 156 LLC, a 79 Madison Ave., 16th Floor, NY, NY Notice of Qualification of Ionic Arts. of Org. filed with Secy. of State org. in DE 7/28/10. SSNY desig. as 10016. Purpose: any lawful activity. Convertible Fund LLC. Authority filed of NY (SSNY) on 12/15/10. Office domestic Limited Liability Company agent of LLC upon whom process (LLC), filed with the Sec of State of with NY Dept. of State on 11/18/10. location: NY County. SSNY against it may be served. SSNY shall Office location: NY County. LLC designated as agent of LLC upon NY on 9/21/10. NY Office location: mail copy of proc. to Attn: Felipe Notice of Formation of NORTH PARK New York County. SSNY is desig- PRESERVATION GP, LLC. Arts. of formed in DE on 11/17/10. NY Sec. whom process against it may be Dorregaray, 135 E. 57th St., 16th Fl., of State designated agent of LLC served. SSNY shall mail process to nated as agent upon whom process NY, NY 10022. DE off. addr.: CSC, Org. filed with Secy. of State of NY against the LLC may be served. (SSNY) on 11/16/10. Office location: upon whom process against it may c/o MontaguLaw, P.C., 1120 Ave. of 2711 Centerville Rd., Wilmington, DE be served and shall mail process to the Americas, 4th Fl., NY, NY 10036. SSNY shall mail a copy of any 19808. Cert. of Form. on file: SSDE, NY County. Princ. office of LLC: 60 process against the LLC served Columbus Circle, NY, NY 10023. the principal business addr.: 366 Purpose: Any lawful activity. Townsend Bldg., Dover, DE 19901. Madison Ave., 9th Fl., NY, NY 10017. upon him/her to Registered Agents Purp.: any lawful activities. SSNY designated as agent of LLC Legal Services, LLC, 1220 N. Market upon whom process against it may DE addr. of LLC: c/o The Corporation Notice of Formation of MW Products, St., Ste. 806, Wilmington, DE 19801. be served. SSNY shall mail process Trust Co., 1209 Orange St., LLC. Arts. of Org. filed with NY Dept. General Purposes. Notice of Formation of C&B 23RD to c/o Corporation Service Co., 80 Wilmington, DE 19801. Cert. of of State: 12/8/10. Office loc.: NY STREET REAL ESTATE LLC. Arts. of State St., Albany, NY 12207. Form. filed with DE Sec. of State, County. Princ. bus. addr.: 49 W. 38th Org. filed with Secy. of State of NY Purpose: Any lawful activity. P.O. Box 898, Dover, DE 19903. St., 2nd Fl., NY, NY 10018. Sec. of Notice of formation of 42 LUDLOW Purpose: any lawful activity. LLC a domestic Limited Liability (SSNY) on 11/15/10. Office location: State designated agent of LLC upon Company (LLC). Articles of Organization NY County. SSNY designated as Notice of Qualification of Kilohana whom process against it may be filed with the Secretary of State on agent of LLC upon whom process Capital Management, LLC. Authority Notice of Qualification of KEENE served and shall mail process to: c/o November 22, 2010, NY Office against it may be served. SSNY shall filed with Secy. of State of NY CONSULTING ARIZONA LLC. Aleena R. Shapiro, Esq., Hartman & Location: New York County. Secretary mail process to Corporation Service (SSNY) on 11/29/10. Office location: Authority filed with Secy. of State of Craven, LLP, 488 Madison Ave., NY, NY of State is designated as agent upon Co., 80 State St., Albany, NY 12207- NY County. LLC formed in Delaware NY (SSNY) on 11/24/10. Office loca- 10022. Purpose: any lawful activity. whom process against the LLC may 2543. Purpose: Any lawful activity. (DE) on 11/19/10. SSNY designated tion: NY County. LLC formed in be served. Secretary of State shall as agent of LLC upon whom process Delaware (DE) on 11/09/10. SSNY Notice of Formation of O’Herron mail a copy of any process against Notice of Formation of 136 W. 136th against it may be served. SSNY designated as agent of LLC upon Grandchildren’s LLC. Arts. of Org. the LLC served upon him/her to: 42 Street, LLC. Articles of Org. filed shall mail process to: The LLC, 351 whom process against it may be filed with NY Dept. of State on Ludlow Street, New York, New York with Secy. of State of NY (SSNY) Saint Nicholas Ave., Ste. 31, NY, NY served. SSNY shall mail process to 12/10/10. Office location: NY County. 10002. Purpose: To engage in any on 11/23/10. Office loc.: New York 10027, also the principal office the LLC, P.O. Box 270, NY, NY Sec. of State designated agent of lawful act or activity. Co. SSNY designated as agent of address. Address to be maintained 10021. DE addr. of LLC: c/o LLC upon whom process against it LLC upon whom process against it in c/o National Registered Agents, Corporation Service Co., 2711 may be served and shall mail Notice of Formation of Loventhal may be served. SSNY shall mail Inc., 160 Greentree Dr., Ste. 101, Centerville Rd., Ste. 400, Wilmington, process to the principal business Silver Manhattan LLC. Articles of process to the LLC, c/o ICER Dover, DE 19904. Arts of Org. filed DE 19808. Arts. of Org. filed with addr.: c/o Jonathan O’Herron, Org. filed with Secy. of State of NY Brands, LLC, 1385 Broadway, 16th with DE Secy. Of State, 401 Federal Jeffrey W. Bullock, DE Secy. of State, Lazard, Freres & Co. LLC, 30 (SSNY) on 06/02/2002. Office loc.: Fl., New York, NY 10018. Purpose: St., Ste. 4, Dover, DE 19901. 401 Federal St., #3, Dover, DE Rockefeller Plaza, NY, NY 10020. New York Co. SSNY designated as any lawful act or activity. Purpose: any lawful activities. 19901. Purpose: Any lawful activity. Purpose: any lawful activity. agent of LLC upon whom process against it may be served. SSNY shall Notice of Qualification of FENSTER- mail process to the LLC, c/o STOCK ASSOCIATES, LLC. Authority Place your business card in Crain’s Business Connections Alexander Hidalgo Inc., 135 West filed with Secy. of State of NY and reach New York City’s Top Level Executives 72nd Street, New York, NY 10023. (SSNY) on 12/10/10. Office location: Purpose: any lawful act or activity. NY County. LLC formed in Delaware (DE) on 11/03/10. Princ. office of App for Auth for 222 EAST 32ND LLC: 445 Lafayette St.. Apt. 15B, NY, STREET, L.L.C. filed with Sec. of NY 10003. SSNY designated as State of NY (SSNY) 11/15/10. Off: agent of LLC upon whom process Contact loc: NY County. LLC formed in UT on against it may be served. SSNY shall 11/12/10. SSNY designated as agent mail process to c/o Corporation her of LLC upon whom process against Service Co. (CSC), 80 State St., John Gallag newyork.com it may be served. SSNY shall mail Albany, NY 12207-2543. DE addr. of jgallagher@crains process to The LLC, C/O Carleton LLC: CSC, 2711 Centerville Rd., Ste. W. Spaulding, 40 Wanderwood Way, 400, Wilmington, DE 19808. Arts. of 212.210 .0189 Sandy UT 84092. Arts. Of Org. filed Org. filed with Secy. of State of the with UT Dept. Of Commerce, P.O. State of DE, Div. of Corps., John G. Box 146705, Salt Lake City, Utah Townsend Bldg., 401 Federal St., 84114-6705. Purpose: any lawful act Ste. 4, Dover, DE 19901. Purpose: or activity. Any lawful activity. 24 | Crain’s New York Business | January 17, 2011 20110117-NEWS--0025-NAT-CCI-CN_-- 1/14/2011 7:35 PM Page 1 PEOPLE IN GLASS HOUSES: The great room, with its 80-foot ceiling, will sit The Knicks rebound atop a sprawling light-filled mall. Continued from Page 1 hauled arena.The first batch are ex- holds), up 44% over last season. A pected to be ready for next season December matchup against the and could fetch around $1 million a Celtics drew a 3.61, the highest year, with contracts extending be- since the 2001 season opener. tween five and seven years, accord- Mr. Joyce estimated the in- ing to a research note by Robert creased viewership resulted in the Routh of Phoenix Partners Group. network taking in an additional New sponsorship deals with J.P. 7.8% in advertising revenue last Morgan Chase, Anheuser-Busch year.He projected an 11.8% surge in and Coca-Cola, among others, will viewership in 2011—a bump that bring in as much as $70 million,Mr. other analysts say could generate an Routh predicted. Add in an expect- additional $60,000 per game for the ed bump in ticket prices, and the network. newly revamped arena could bring The Knicks are playing to in an extra $100 million in adjusted crowds of better than 99% capacity, cash flow by the 2013-2014 season, MSG officials said, and sold out 15 he estimated. of their first 17 games, compared with just 26 full houses all of last NYC’s most marketable star year.There’s a season-ticket waiting THE KNICKS’ REBIRTH will also be a list for the first time in a decade,and boon to Mr. Stoudemire, who in demand for individual games on the short order has arguably become the secondary market is way up. Spike most marketable sports star in the Hudson Yards aims to lure tenant Lee is once again a fixture in his city. He’s overcome a tough child- courtside seat, and fellow celebri- hood in Lake Wales, Fla., and ca- reer-threatening injuries to play at Continued from Page 1 Ann Tighe, CEO of the New York Properties, an arm of one of Cana- an MVP-caliber level in the shad- least 600,000 square feet of office tristate region of CB Richard Ellis da’s largest pension funds,to help fi- A season-ticket ows of Madison Avenue. space.Only then can Related attract Inc., would comment. nance and market the project. “With a well-thought-out and the needed financing and start Ms.Tighe insists that the project “There isn’t a site anywhere else waiting list strategic plan, he should be able to building what will be a completely will succeed, given that much of the like Hudson Yards,” said Blake generate tens of millions in revenue new neighborhood. city’s space is old and that there’s lit- Hutcheson, Oxford’s chief execu- for the first time off the basketball court,” said An- To land its key tenant, the devel- tle in the pipeline. She notes that a tive, adding that the firm is bullish drew Stroth,a Chicago-based attor- oper is offering either to construct a mere 32 buildings,with 27.6 million on New York because of its position in a decade ney who negotiated deals for Miami building and sell it to that company square feet in all—less than 10% of in the global financial market. Heat superstar Dwyane Wade. at cost, or to provide a big break on the city’s total—were built after Mr. Stoudemire’s agent, Happy the rent. In either case, Related is 1990. And they have an availability Modest beginnings Walters, said the idea is to be selec- promising a state-of-the-art tower rate of just 10.7%, compared with THE FIRST TOWER will not open its tive, to not burn out his client’s that will rise on acres of open space, doors until 2015 at the earliest.Even ties—including Dylan McDer- brand. “More than any athlete I’ve bordered by the High Line and the then, Related will not exactly strike mott, Donald Trump and Vera known, I think Amar’e is an entre- Hudson River. Other perks will in- it rich, given the company’s plans to Wang—have returned to the Gar- preneur,” Mr. Walters said. “He clude a 750,000-square-foot glass sell the building at cost or charge den’s front rows. Page views on the looks at things differently, not just mall topped with a great room: an only enough rent to cover construc- Knicks’ website are up 65% com- what they’re worth now, but later.” enclosed dining and socializing pi- tion costs—a sum that Mr. Cross pared with last year, and the team Mr. Stoudemire already has his azza featuring an 80-foot ceiling estimates at about $70 a square foot. now boasts 340,000 Facebook own entertainment company, and and great river views. For built-to-suit, green space, that friends and 52,000 followers on has started taking notes for a poten- The entire 12-million-square- represents a real bargain, he says. Twitter. tial script about his life story. He’s foot, $15 billion project is expected What’s more,tax incentives can save got deals with Zico Coconut Water to take as long as 15 years to finish. tenants $6 per square foot. Rangers look promising, too and energy drink EBoost. And he When the project is completed, a Savings are only part of the draw. “FANS ARE THIRSTING, they’re des- has his own foundation,which helps platform constructed over the work- After completion of the No. 7 ex- perate, they want to be able to root young athletes in Africa. ing rail yards will be home to a new tension, slated for December 2013, hard for this team,”said Tommy Dee, A fashion label is in the works community boasting three office it will take less than 10 minutes to who runs TheKnicksBlog.com, and, in a bit of serendipity, his shoe buildings, nine residential towers reach Grand Central Terminal from where traffic is up about 20% from a contract with Nike expires after this with a total of 5,000 apartments, a Hudson Yards.Penn Station and the year ago. season. Mr. Stoudemire plans to mall, a school, a cultural center and Port Authority Bus Terminal are The reversal, which coincides travel to China this summer, where, 12 acres of open space. The parcel even closer. with a promising season by a young Mr. Walters spells out, local brands runs from 10th to 12th avenues and the city’s average of 12.6%. The logistics are only part of the New York Rangers hockey team, have expressed interest in a deal. from West 30th to West 33rd streets. Other pluses for the project in- pitch. Mr. Cross is convinced that couldn’t have come at a better time As on the fast breaks he’s been Enticing tenants will be enor- clude the improving economy, the tenants will be drawn by the open for the Garden, which has already finishing with authority, timing is mously tough, experts say. Massive stunning rise of the High Line and space, the cultural center and the started selling suites in the over- everything. Ⅲ projects have a history of taking surrounding neighborhoods as ma- mall—which will be twice the size of longer than expected, and in the jor destinations, and the extension the retail portion of another Related meantime, companies seeking large of the No. 7 subway line to the site’s development, the Time Warner swaths of space have other options, West 33rd Street border. Center.What’s more,a short walk on L.A. firm hits NY including two towers rising at The strengthening economy will the High Line will take people to ground zero. Vornado Realty Trust cut both ways for Related.Once cer- some of the city’s most popular spots. has approval to construct a tower on tain real estate benchmarks are hit, “The hardest part of this is con- Continued from Page 3 according to published reports. Seventh Avenue across from Penn Related must officially close its 99- vincing people [the project] is for defaulted loan at a 16% discount,ac- CIM is in the city for the long Station, while Boston Properties is year lease deal with the Metropoli- real,” said Mr. Cross. Ⅲ cording to public records. The firm haul, observers said. Earlier this ready to restart its development at tan Transporta- arranged with project developer month, the firm said it would retain West 55th Street as soon as it finds tion Authority Madison Equities to either provide and rent the units at William Beaver a tenant, sources say. and hand over PIONEERS WANTED: financing or take an equity stake,ac- House rather than sell them. $9.2 million im- Related Hudson Roping a maverick Yard’s Jay Cross is cording to sources, who added that “They’re committed to New mediately. The looking for a bold a hotel will be built on the site. York,” said Robert Scaglion, senior “HUDSON YARDS is not yet built, and close of the deal company with big Madison Equities did not return a managing director of residential it’s in an untested area, so you are go- starts the clock space needs. call for comment. marketing at Rose Associates, ing to need a real maverick to go for rent and oth- Guided by Mr. Ressler, a former which is managing and marketing there,” said Richard J. Brown, co- er payments, Drexel Burnham Lambert invest- the units for CIM.“They’re aggres- chair of law firm Herrick Feinstein’s which Related ment banker, CIM boasts a sizable sively pursuing deals.” commercial leasing practice group.“A will eventually portfolio of residential and commer- Additionally, the firm spent lot of companies don’t like to be first.” have to make, cial property concentrated in Cali- $42.5 million for a townhouse on Still,Hudson Yards has attracted whether it has fornia and Texas. The California East 57th Street, adjacent to the some interest.Related is negotiating tenants or not. Public Employees’ Retirement Sys- Drake site.Observers speculate that with upscale fashion company For help, Re- tem has invested more than $800 CIM intends to develop a mixed- Coach, sources say. Neither Related lated partnered Ⅲ million in CIM’s real estate funds, use development there. executives nor Coach broker Mary with Oxford buck ennis January 17, 2011 | Crain’s New York Business | 25 20110117-NEWS--0026-NAT-CCI-CN_-- 1/14/2011 5:45 PM Page 1 grander vision than Ms. Arpaia. “Ron is talking about opening in Donatella’s new pairing: 3rd time’s the charm Hong Kong, which is crazy,” she said. “I think the next one needs to Continued from Page 1 Ron Brannon, 46, has held sen- “It’s a good basis for a partner- She also wants more time for a key be close by.” her midtown eatery Mia Dona as ior positions at Merrill Lynch and ship to bring someone in who is personal relationship. Donatella is “You have to look at where the simply “satisfactory” after she took AIG. He was the chief technology more back-of-the-house,who is not her 10th restaurant opening. To- capital is,” he responds. over the menu. officer of the institutional securities interested in putting their ego into gether,the pair has big plans to open Mr. Brannon raised concerns Yet despite these lumps and her group at Morgan Stanley until June the pot with hers,” says Stephen more Donatellas and DBars. But over his partner’s huge investment new wariness,she’s hardly retreating. 2009, when he became a victim of Zagor,director of management pro- their road map is a work in progress, in the gold-mosaic brick oven she The dining diva sank $2 million of the recession. His business acumen grams at the Institute of Culinary as are the details of their partner- had custom-made, flying in crafts- her own cash into a high-style pizze- and professed disinterest in the Education. “It’s as if she’s learned ship. After 18 months working on men from Naples to build it. ria, 4-month-old Donatella, and its limelight are a stark contrast to the from two previous marriages.” the restaurant,they are just now ink- The true test of their partnership adjacent lounge, DBar, in Chelsea. personalities of Ms. Arpaia’s previ- ing a formal agreement. came when Mr. Brannon insisted on More significantly, Crain’s has ous partners, including celebrity Back at the altar Their deal includes a software taking the reins of hiring and man- learned that she has taken on a new chef David Burke—and that’s ex- WHAT CONVINCED HER to visit the altar system Mr. Brannon is building for aging the 40-person staff at Do- business partner, a former Wall actly the point. He takes care of again, she says, is Mr. Brannon’s the restaurant industry, using Do- natella,located on Eighth Avenue at Street executive who has been a loy- business while she focuses on pro- track record as a successful manager natella and DBar as his laboratory. West 19th Street. He fired some al customer and friend for more than moting her brand,allowing her to be and her own weakness at running Ms.Arpaia will have staffers Ms. Arpaia a decade. the sole attraction. the business side of her ventures. a stake in the com- brought in on the pany, called Max- ‘It was very grounds that they alon, just as Mr. were not producing. Brannon is a man- scary for He instituted week- aging partner in her ly peer review per- restaurant. After her me to take formance ratings; if investment in Do- someone falls short natella is returned, on another three times, they’re he will have a sliding shown the door. scale of increased partner’ “It was a big eye- equity. And if he se- opener for me that I cures financing and wasn’t hiring as well a location for a sec- as I thought,” says ond Donatella, his Ms. Arpaia, who ownership percentage will be greater still questions whether Mr. Bran- than his first stake in the restaurant. non’s approach is too tough. After a full day of running the restaurant, Mr. Brannon works on Creative control an issue the software in his Chelsea apart- AS SHE REFLECTS ON HER PAST mis- ment at night. He compares it to a takes,one she won’t repeat is sharing combination of OpenTable and the business with a chef, someone other existing software that focuses who will compete with her for cre- on purchasing, payroll and account- ative control over the business. ing functions. There is a long list of failed part- “The restaurant industry is at nerships between chefs and restau- least 30 years behind in technology,” rateurs, the most recent example be- he explained. “I’m intrigued by ing last week’s breakup of the building a platform that glues the Altamarea Group, as chef Michael front-of-the-house and back-of- White and restaurateur Chris Can- the-house systems together.” non split up. Industry experts say there is no Before that, the BLT Restaurant shortage of technology aimed at the Group’s Jimmy Haber and chef restaurant business,but the problem Laurent Tourondel ended their six- is most mom-and-pop owners don’t year partnership and now are suing use it. each other. Nevertheless, the duo is con- Ms. Arpaia may face a lawsuit vinced of the project’s merits. Mr. from Mr. Psilakis, with whom she Brannon expects to complete the co-owns Upper West Side eatery software and to begin testing it in Kefi and operates Eos in Miami. Donatella in six months or so. Mr. Psilakis declined to comment In the meantime, they are work- for this story,but he has made state- ing out their differences.While they ments about potential litigation. enjoy a familiarity that comes from “It was very scary for me to take a lot of time spent together—and on another partner,” says Ms. Arpa- frequently interrupting each oth- ia.“But there is a lot of trust between er—it’s clear Mr. Brannon has a me and Ron.” Ⅲ City looks for a taxi Continued from Page 2 “We’re in the good position of its reliable but uninspired NV200 having three strong proposals here,” minivan. TLC Commissioner Da- Mr. Yassky said. “Our foremost re- vid Yassky said Nissan is the only sponsibility is to make sure the in- contestant that envisions an all- dustry can continue transporting electric taxi. 700,000 people a day.” A major obstacle to electric is Another challenge for Mr.Yassky that the city doesn’t have the infra- is winning over fleet operators, who structure for handling batteries, will be required to buy the car and are particularly in cabs, which are gen- irked by being cut out of price nego- erally used 24/7 in 12-hour shifts. tiations. Base prices start at about Whatever fuel it uses, the Taxi of $22,000,but wheelchair-accessibili- Tomorrow must be able to cover at ty and electric engines would add to least 150 miles a shift.That’s attain- the cost. able with a tank of compressed nat- Insiders said that in return for in- ural gas—one reason both Karsan dustry support,the commission may and Ford have proposed transition- consider granting operators’ request ing the city’s fleet to CNG. to raise fares. Ⅲ 26 | Crain’s New York Business | January 17, 2011 20110117-NEWS--0027-NAT-CCI-CN_-- 1/14/2011 12:01 PM Page 1 Women held 14.4% of executive officer positions at Fortune 500 companies in 2010, up from 3.5% 13.5%1 in 2009 BUSINESS LIVES Source: Catalyst HOT JOBS EXECUTIVE INBOX CREATIVE DIRECTOR Anne Fisher COMPANY Big Fuel Communications Mastering the JOB DESCRIPTION Act as right hand to executive creative director; art of selling oversee development of creative AT FIRST GLANCE, artistic assets leveraging social media endeavors like acting may seem MOST IMPORTANT TASKS to have little in common with Produce creative solutions that running a business. Yet in New reflect brand personality York, where you can’t swing a cat CREDENTIALS NEEDED Seven to without hitting a performer of one 10 years of experience in creative stripe or another, some success- digital marketing; two to three ful entrepreneurs are applying years in a senior managerial role artistic talent to their busi- nesses in intriguing ways. SALARY $170,000+, according to Consider, for instance, local search firm estimates Tim Askew, founder and RECRUITER Internal CEO of Corporate Rain, DOWNSIDE Must deliver high- which specializes in helping quality work under tight deadlines clients like AIG, Columbia Business School, Con Edison, UPSIDE Producing social media Marsh & McLennan and Ogilvy & marketing for Fortune 100 clients Mather sell their services to high- Marketing agency Big Fuel plans to level executives. The firm add 100 jobs by June. Last week, employs about 30 part-time it named Jon Bond, who co-found- consultants, former CFOs, COOs ed Kirshenbaum & Bond, its CEO. and vice presidents who “have —SUZANNE PANARA left the full-time corporate rat race but who still have their chops and can speak peer-to- peer with senior decision- IN CHARACTER: makers,” Mr. Askew said. EXECUTIVE MOVES Elly Burke plays the role of a 14-year-old He launched Corporate Rain E*Trade Financial Jewish immigrant at 16 years ago with “no sales Corp.: Matthew J. the Tenement background whatsoever,” he Audette, 36, was Museum. said, after having worked as a fry promoted to chief cook, bartender and nude financial officer at the buck ennis financial services artists’ model, all between acting company. He was GOTHAM GIGS jobs. Indeed, Mr. Askew moved formerly senior vice to New York from Los Angeles, president and corporate controller. after a stint on the now-defunct Downtown Music: Dan Lieblein, 49, was soap Another World, in order to hired as the company’s chief financial seek work on Broadway, where officer. Previously, he served as chief financial officer of Cherry Lane Music he appeared with Jack Lemmon History Comes Alive in Tribute and with Rex Harrison Publishing Co. Jenner & Block: Wesley Fredericks, 62, in The Devil’s Disciple. joined the law firm as partner and chair ELLY BURKE can often be found at 97 Orchard St., sharing stories of Acting, he said, “teaches you of the New York corporate practice. He The sleepless nights on her family’s kitchen floor beneath a goat-hair empathy. When I first meet a had been a partner at Goodwin Procter. client, I try to get inside their Bracewell & Giuliani: David A. Spotts, 53, character blanket. When boys ask her for a date, she blushes and tells them to skin. What do they want? Who joined the law firm as counsel. He was ask her father. Her character’s father, that is. ¶ Ms. Burke plays the most recently a senior consultant at ‘is very are they? And how do they Global Markets Consulting. role of Victoria Confino, a 14-year-old Jewish immigrant, three approach challenges? I don’t Young People’s Chorus real,’ days a week at the Tenement Museum on the Lower East Side. even try to sell them anything of New York City: Peter until I feel I understand that.” Shavitz, 63, was according To prepare for the part, the 23-year-old had to perfect a Ladino Even the most accomplished named director of accent and study the history of the Confino family, who hailed from actors face rejection at every development for the music education and to the what is now Greece.They lived in the museum building in the early audition, added Mr. Askew. “It’s choral performance 1900s. ¶ “It’s very real,” said the actress. ¶ Ms. Burke started at the very personal,” he said. “It’s you group. He was actress they don’t want, not a product or formerly director of development for museum in 2009 after graduating from Connecticut College. A a service.” By contrast, he said, the American Music Center. native of suburban Boston, she has performed similar roles at Ellis salespeople run into a lot of The Halo Group: Patricia Cunningham, Island and the Smithsonian Institution. ¶ But despite her interest in rejection, but “it doesn’t sting the 51, was appointed senior vice president, client services, at the historical theater, Ms. Burke—who grew up writing plays and doing same way. It’s not personal, so it independent marketing impersonations—dreams of becoming a comedian. She spends her rolls right off me.” communications and branding agency. She was most recently a free time creating sketches and posting them on the Internet. ¶ IF YOU HAVE an arts background, how freelance strategic account director “Saturday Night Live would be my mecca,” she said. does it influence your business? Tell us at See EXECUTIVE MOVES on Page 28 —miriam kreinin souccar www.crainsnewyork.com/execinbox. January 17, 2011 | Crain’s New York Business | 27 20110117-NEWS--0028-NAT-CCI-CN_-- 1/14/2011 12:02 PM Page 1 RÉSUMÉ REVIEW Face-to-face with Web vet Is your job search all it could be? We ask the experts. Meetup co-founder to be drawn to the West Coast, Are you profitable? NAME ROBBI G. MUIR which made it hard to recruit and We had our fifth straight period of SUMMARY excited by NY’s new hire people in New York. Now, profitability in the third quarter of Creative director and experienced design there’s a second center of gravity in 2010 [the last data available].We’re consultant providing expertise in corporate status as tech center the tech world. But it also means on a subscription model: About identity and marketing strategy that there’s real competition for tal- 85% of our revenues come from PROFESSIONAL EXPERIENCE ent here. We fight with Foursquare dues, which are the monthly fees l Dow Jones & Co./The Wall Street Journal, 2008–2010 BY HILARY POTKEWITZ and Google for software engineers. [about $15] that organizers pay to maintain a group page on the site.A Creative director NLIKE SOCIAL MEDIA com- How does Meetup compete with year and a half ago, we started a Developed a comprehensive 360 branding program for the WSJ panies that get people to the slew of hot startups? sponsorship program, where Executive Financial Conferences, including all print/Web promotion in interact online,8-year-old You can’t continue to com- companies can sponsor a group the form of identity, Web design treatments, Web banners, html e-mail, Meetup Inc. helps people pare yourself to what the based on its interest, and revenue print advertising, media kit design, program book design, invitations, Uconnect face-to-face. Crain’s caught current hot thing is—that from that is growing. But we signage graphics and collateral marketing print Meetup’s co-founder and chief fi- will drive you insane. You don’t sell our users’ data or use it l AKF Group, 2005-2010 nancial officer,Brendan McGovern, need to keep your head down to attract advertising. Design consultant 37,at a recent venture capital confer- and focus on your busi- Streamlined development of engineering firm’s corporate brand, ence. ness. We’re con- What do you think about including corporate brochure and website redesign stantly changing, Goldman Sachs’ l Meltzer Mandl Architects, 2010 What’s the New taking cues and Facebook investment? Design consultant MOVERS & York tech scene leads from our It shines a light on Redesigned firm’s corporate identity program. New logo developed and SHAKERS like right now? members about the rise of the sec- applied to stationery system and marketing collateral print program It’s a fantasti- how they’re us- ondary market. In l Experion Design Group, 2010 cally exciting ing the service, the first tech Design consultant Brendan time to be a and what direc- wave, the entre- Designed collateral print, marketing brochure, keynote presentations McGovern tech company tion we should preneur’s dream and RFP design formatting here. For a take to attract stamp of approval long time, the more people and was to go public. EDUCATION scene was to keep existing The IPO window l University of British Columbia, B.A., arts West Coast-based, and the only users engaged. has been shut for a l Vancouver School of Art, photography/graphic design tech companies in New York were long time. This Résumé appears in condensed form. How many people use media- or advertising-related. But demonstrates that EXPERT ADVICE in the past few years, there’s been an Meetup? another path to explosion of successful New York More than 9 million liquidity exists be- Robbi has held many positions over the years because she has worked as companies—like Foursquare, Gilt have signed up for yond being ac- a contractor. I would recommend breaking up the résumé into permanent Groupe and Etsy. Meetups. There are quired or going and contract positions, so potential employers don’t pass her off as a job- 80,000 active Meetup public,and that’s hopper. Robbi should also include only necessary information in order to What does that mean for Meetup? groups and 200,000 events a new phenom- reduce the total length of her résumé. Most of the talented engineers used a month worldwide. enon. Ⅲ —terry thiele, owner, Transept Recruiters buck ennis To contact this candidate or to be featured in “Résumé Review,” e-mail us advisory services firm. He was most Carl Marks Advisory Group: Evan at [email protected]. EXECUTIVE MOVES recently a portfolio manager at Tomoskovic, 38, was promoted to partner CapitalSource Finance. at the corporate revitalization and Continued from Page 27 Kleinberg Kaplan Wolff & Cohen: Jodi F. investment banking firm. He was at Prudential Financial. Krieger, 47, was promoted to member at formerly a managing director. Winston & Strawn: the law firm. She had been of counsel. Christopher Wu, 41, was partner, product design. He was firm. He was formerly of counsel. Michael Murray, 49, Colliers International: promoted to partner. formerly design director. Baker & McKenzie: Niamh Curry, 41, was joined the law firm as Joseph Caridi, 44, was He was formerly a Pashman Stein: Aidan O’Connor, 49, appointed partner at the law firm. She a partner. He was promoted to chief managing director. joined as a member and will lead the law had been an associate at Dechert. previously a partner at operating officer of Charles Boguslaski, 34, firm’s white collar criminal defense Marc Litt, 48, joined as a partner. He Milbank Tweed the New York/tristate was promoted to practice. He was formerly a partner at was previously assistant U.S. Attorney in Hadley & McCloy. region at the real managing director. He Stern & Kilcullen. the Southern District of New York. Morrison Cohen: estate firm. He was was formerly director. McKool Smith: Brett Cooper, 42, was RXR Realty: William Andrea Fischer, 46, formerly executive vice C. Scott Chabina, 28, named principal at the trial law firm. He Elder, 45, was named was named a partner at the law firm. She president. was promoted to vice president. He was was previously an associate. executive vice had been a partner at Olshan Grund- CNN: Tom Goldstone, 38, was named formerly an associate. Kyle Lonergan, 41, was named principal. president and man Frome Rosenzweig & Wolosky. executive producer of the network’s Edwards Angell Palmer & Dodge: Marc He was previously an associate. managing director of PwC: Kevin Ciavarra, 39, was named Fareed Zakaria GPS program. He had Voses, 38, was promoted to partner at the Eric Halper, 36, was named principal. the New York City principal at the assurance, tax and been senior producer. law firm, where he continues as a He was previously an associate. division. He was most member of the insurance and Herrick Feinstein: recently a senior reinsurance department. He was Richard Im, 39, was managing director at CORPORATE LADDER previously an associate. promoted to counsel Cushman & Wakefield Inc. Fitzpatrick Cella Harper & Scinto: at the law firm. He Zeno Group: Mark O’Connor, 41, joined Christopher P.Borello, 37, was promoted was previously an the public relations agency as executive BURT DUBROW JOINS DR. DREW to partner at the intellectual property associate. vice president, media. He was most law firm. He was previously an associate. MphasiS: Ann Weaver, recently with Ogilvy PR as senior vice BURT DUBROW was named executive producer of Dr. Drew, a Christopher E. Loh, 37, was promoted to 51, was appointed president, media. show set to launch this spring on cable network HLN, a CNN partner. He was previously an associate. head of the insurance King & Spalding: Ram Burshtine, 43, was sibling and unit of Time Warner. Mr. Dubrow was most recently Alicia A. Russo, 46, was promoted to industry solutions group at the IT named partner at the law firm. He had executive producer of GSN Live, a daily program running on partner. She was previously an associate. services provider. She was most recently been counsel at Weil Gotshal & Manges. the Game Show Network. He is an Emmy-winning producer and has won two Sidley Austin: Kevin Blauch, 52, joined chief information officer for global PubMatic: Andrew Rutledge, 35, was Cable Ace Awards. the law firm as a partner. He was products at Aon. promoted to general manager and vice previously a partner at Latham & Troutman Sanders: John J. Leonti, 34, was president of publisher development at Prior to GSN, he was executive producer of Whatever With Alexis and Watkins. elected partner in the project the online publishing services company. Jennifer, a national radio program carried on the Martha Stewart Channel on HUGE: Joe Stewart, 32, development and finance practice at the He was previously vice president of Sirius Satellite Radio. Mr. Dubrow is known as an innovator in the daily talk was promoted to law firm. He was previously an associate. publisher sales and head of the New show genre. partner at the ArnoldNYC: Beth Fetzer, 45, was hired as York office. The likes of Jerry Springer and Sally Jessy Raphael achieved sustained interactive agency. He senior vice president and director of —maggie wells success under his creative guidance. As executive producer of Sally Jessy continues as executive integrated planning at the creative director. communications company. Most Raphael, he broke two traditional rules of television: Radio personalities don’t EXECUTIVE PROMOTIONS Patricia Korth- recently, she served as senior vice translate to television, and women can’t host talk shows focusing on McDonnell, 31, was president and director of account The fastest way to get an announcement into controversial issues. The syndicated series spanned 18 years. promoted to partner, client services. She planning at Draftfcb. Crain’s is to submit details online. Fill out the form —MAGGIE WELLS was previously director of strategy. Labaton Sucharow: Michael W. Stocker, at www.crainsnewyork.com/submit. The Felipe Memoria, 33, was promoted to 42, was promoted to partner at the law Executive Moves column is also available online. 28 | Crain’s New York Business | January 17, 2011 Project84:fp template.qxd 11/4/10 12:10 PM Page 1 Early on in his career, Joseph Weilgus worked as an intern at a top consulting firm. He used CRAIN’S annual Book of Lists as the ultimate prospecting tool, eventually building enough of a client base to start his own business. Today, as Chief Executive Officer of investment and financial advisory firm New Legacy Group and founder of Project Sunshine, a multi-national children’s non-profit organization, Joe continues to use CRAIN’S assets to build his growing empire. C N Y B : M C 25 Y . 20110117-NEWS--0030-NAT-CCI-CN_-- 1/14/2011 12:02 PM Page 1 chemex / INSATIABLE CRITIC WORKSHOPS Gael Greene MONDAY , JANUARY 24 flickr.com THE “INVESTING IN STOCKS: THE Attend BASICS” at the New York Public Library’s Science, Industry and WEEK Business Library. Basic investment terms and concepts will be explained at the workshop. The event is free and will Lower E. Side’s AHEAD take place at 188 Madison Ave. in the Electronic Information Center, ETC 3, from 1 p.m. to 2:30 p.m. For more JAN. 24-30 information, call (917) 275-6975 or visit http://www.nypl.org/locations/sibl. grand jewel box newscom CONFERENCES AND NETWORKING RECEPTIONS Funky, elegant Beauty SEMINARS TUESDAY , JANUARY 25 WHAT HE’S WEDNESDAY , JANUARY 26 EVANTZ SAINT-GERARD & DEAN GRABER & Essex offers good THE RETAIL MARKETING SOCIETY and OF UNITED MORTGAGE CORP. invite local READING FIXED INCOME ANALYSTS SOCIETY will industry executives to their first real American; a few flubs hold a panel discussion focusing on estate networking function of 2011. AS CITIGROUP’S chief executive private equity, the credit markets and Mortgage-related professionals may not for consumer banking for the EAUTY & ESSEX, launched recent leveraged buyout activity in the attend.The free event takes place at the Americas, Manuel Medina Mora by the powers behind The retailing industry. Participants will meet Social Bar & Grill, 795 Eighth Ave., oversees a business spanning Stanton Social,burst into at Arno Ristorante, 141 W. 38th St., from 6 p.m. to 8 p.m. Registration is from 12 p.m. to 2 p.m. The fee to required. Each interested party must New York to Argentina and is life on the cusp of Christ- attend the luncheon event is $50 for submit the following business contact considered a likely candidate mas, and though it had RMS members and $75 for information: full name, company/firm, to succeed Citi CEO Vikram not yet been claimed by nocturnal tall nonmembers. Register by Tuesday, Jan. title/position, e-mail, phone number B buck ennis Pandit. women and the pride of cats who at- FULL OF FLAVOR: The house burger 25, by calling (201) 692-8087 or and brief description of services to The Mexico native’s division tend them, it was still impossible to e-mailing [email protected]. [email protected] before 3 p.m. on generated $1.6 billion in net snare a table at an hour when adults Jan. 25. For more information, call BEAUTYEDNSA & ESSEX WWEDNESDAY , JANUARY 26 (917) 975-5985. income through the first nine eat.So,in a Me,Eloise foot-stamping months of 2010 on $18 billion in mode, I was forced to call chef-part- 146 Essex St. THE ASSOCIATION FOR CORPORATE GROWTH HURSDA TTHURSDAY , JANUARY 27 revenue—a quarter of Citi’s total ner Chris Santos. (212) 614-0146 invites you to its Healthcare www.beautyandessex.com Conference. Participants will have the Join members of the NYC BUSINESS sales. I’d fallen in love with the chef ’s opportunity to meet health care pro- NETWORKING GROUP at their pitch party small sharing plates at The Stanton Naturally, Mr. Medina Mora fessionals and hear the latest news from to create new business relationships. spends a fair amount of his time Social before the usual darling brats the health care market.The conference Participants present their pitches and reading about finance and staked their claim.It was amusing to CUISINE American will be held at the Metropolitan Club, then target people to meet. The event order soft tacos to fill with lamb 1 E. 60th St., from 5 p.m. to 9 p.m.The runs from 6:30 p.m. to 8:30 p.m. at global events, but he also likes shank or soupy dumplings and get PRICE RANGE Entrées $17-$48 fee is $200 for ACG New York Regus NYC, 245 Park Ave., 24th floor. Stieg Larsson’s trilogy and members, $225 for members of other Refreshments will be provided. The fee recently completed the third tremulous wonton skins stretched SERVING Dinner, seven days over … French onion soup. chapters, $250 for nonmembers, and is $20 prepaid by noon on Jan. 27 or installment, The Girl Who Kicked $30 cash at the door. RSVP at Then I read that Santos had RESERVATIONS Yes $300 for all who register on-site. For the Hornet’s Nest. more information and to register, visit www.meetup.com/The-NYC-Business- “It’s one of the first classics of bought the old Katz & Sons furni- NOISE LEVEL Happy clatter www.acg.org/nyc/events. Networking-Group/calendar. Contact ture store on Essex Street, big the 21st century,” the banker enough for 300 seats on three floors I can’t wait to return. said at a recent Citi event. with two bars and a lounge in its I will definitely go back. That the main character is a 10,000 square feet. Frankly, it didn’t I’ll let them simmer awhile. woman lends the book a sound like he was planning anything NO HATS Never again. modern touch, he added. meant to please me. But still … I —AARON ELSTEIN liked his attitude … and that food. With partner Peter Kane of Happy ing my fingers. The tempura onion Ending curating the music and rings are just so-so. Something is [email protected] for more built-in soundproofing, Beauty is as amiss; could it be they lack an ooze information. Beauty does. of grease? And tangerine-sweet HURSDA TTHURSDAY , JANUARY 27 Can this be right? It is 146 Essex. baby back ribs are stringy and disap- Come to the opening of SUBTITLES, We have entered a pawn shop. “Is it pointingly wimpy.But the seductive created by London-based artist Hurvin all for sale?” I ask. “Can we shop?” richness of creamy chile-spiked Anderson, at the Michael Werner The attendant giggles. “Not yet. mascarpone polenta makes up for a Gallery. In 2009, the Tate Modern Maybe one day.”Then a slyly smiling few flubs, and spaghettini with presented the artist’s first solo museum young man opens a door at the back lemon-parsley pesto and a sunny- exhibition, Peter’s Series, which later and the main attraction is revealed. side up egg is a hit with all. traveled to Studio Museum Harlem in Stepping into a two-story entry with One of our pals makes a stab at New York. The opening takes place a chandelier dripping down like a healthy eating: his olive-oil poached from 6 p.m. to 8 p.m. at 4 E. 77th St. For information, call (212) 988-1623 or shoulder-duster earring from the black cod with a sprightly beet and visit www.michaelwerner.com. ’80s, the feel is all very grand jewel caramelized citrus salad alongside is PICK OF THE WEEK box. It’s a funky, whimsical elegance fine. But since we’re sharing, I notice IN CELEBRAION TIONT OF THERY 20TH ANNIVERSAARYUNDA of The New SSUNDAY , JANUARY 30 I wouldn’t expect from the designers he’s positively gleeful with his quar- Attend the GREAT DANES AND NORDIC at AvroKO: pony fur walls, peacock ter of the house burger—juicy, rare, York Jewish Film Festival, The Jewish Museum and the Film KNIGHTS concert presented by the feathers, boudoir lamps. full of flavor—layered with goat feta, Society of Lincoln Center present Tevye. This 1939 Amuse women’s ensemble. The Finally, we are installed in the tomato and spicy roasted garlic aïoli. adaptation of the classic Sholem Aleichem tale—the basis program features contemporary works dining room in a corner booth at a Fabulous herb-dusted “frites” dosed based on medieval chant, Renaissance for the musical Fiddler on the Roof—centers on Russian polyphony and folk melodies from bare wooden round tended by our with vinegar powder and sea salt pro- Iceland, Norway, Sweden, Finland über-accommodating waiter Ferris. voke whimpers and raves. I recom- dairyman Tevye’s struggle to remain loyal to tradition in the and Denmark. The concert will take He’ll get me a fresh pink lady if mend Brussels sprouts with tomato face of changing times. The film is in Yiddish, with English place at St. Ignatius of Antioch, there’s not enough homemade pome- and pancetta, and “simply roasted subtitles. Tevye will be introduced by J. Hoberman, author of 552 West End Ave., at 4 p.m. Tickets granate grenadine in my gin and ap- mushrooms” with Thai basil from a are $15 in advance through the plejack cocktail.(“Very tangy,”I had category called Accessories, should Bridge of Light: Yiddish Film Between Two Worlds, and followed ensemble’s website, $15 for seniors and said.) Just as I start to feel pleasant- you feel the table is underdressed. by a book signing. Single tickets for the festival screening $20 at the door. To get more information or purchase tickets, visit ly woozy—a cocktail with substan- Warm apple pie with cheddar are $12 for general admission, $9 for students, $8 for seniors tial booze, that’s a plus these days— cheese streusel challenges Red www.amusesingers.org. —maggie wells a long oval pizzetta arrives, thin and Rooster’s version by daring cheddar and $7 for Film Society and Jewish Museum members. It crisp and delicious, with a melt of ice cream.Is it a trend? If so,let it start takes place at The Jewish Museum, 1109 Fifth Ave., at 3 p.m. Maytag blue,hints of apple,double- on long legs and succumb to imitation For details, call (212) 875-5601 or visit www.filmlink.com. To view Crain’s classified events listings, smoked bacon, black pepper and fast. But priming the molten choco- go to www.crainsnewyork.com/events truffle honey. late bread pudding with chocolate A tangle of salt and pepper bread is a fussiness to be encouraged. shrimp is salty indeed and a tad too MON. TUES. WED. THURS. FRI. SAT. SUN. cooked, but I’m dunking mine into Copyright © 2011 by Gael Greene. 1.24 1.25 1.26 1.27 1.28 1.29 1.30 miso sambal mayo anyway and lick- Syndicated by www.insatiable-critic.com. 30 | Crain’s New York Business | January 17, 2011 20110117-NEWS--0031-NAT-CCI-CN_-- 1/14/2011 5:46 PM Page 1 THE CHEAT SHEET As Goldman Sachs WEEK eloquently put it last week in its wet-noodle of a report ON THE about its business practices, “This has been a WEB challenging period.” You think? Time for an update JAN. 10-16 on everyone’s favorite CRAINSNEWORK YYORK.COM “vampire squid.” bloomberg news WAY BACK WHEN Goldman was sued last April by the Securities and Exchange Commission for misleading clients about a designed-to-fail Tragedy sparks investment. Senate investigators soon afterward uncovered an e-mail in which a senior Goldman banker described another deal as “sh-tty.” political outcry Goldman’s reaction? “I think that’s very unfortunate to have on e-mail,” its CFO said. It sure seemed as if Chief Executive Lloyd Blankfein MURDEROUS SHOOTING (above) would be sacked after a respectable delay, much as Tony Hayward rampage at a political was dumped by BP a few weeks after the Gulf oil disaster struck. After gathering in Tucson, all, Goldman’s stock was tanking at the time, it cost the bank $550 million A to settle the SEC charges, and the institution that likes to proclaim “our Ariz., dominated the clients’ interests always come first” admitted it made “a mistake.” mediasphere last week, FAST-FORWARD Goldman shares regained nearly all the ground they lost, sparking intense criticism of newscom trading at about $171 late last week. And corporate clients still stand the shrill, heated tone of political discourse in the U.S. Some liberals blamed conservative talk- behind the firm: Goldman advises as many companies as ever on mergers, radio hosts for inciting violence, and former Alaska Gov. Sarah Palin accused liberals of “blood and its market share for selling new stock offerings was higher last year libel.” President Barack Obama offered calmer words in a televised memorial service: “If this than in 2007 or ’08.The disappearance of Lehman Brothers and Bear tragedy prompts reflection and debate,” he said,“let’s make sure it’s worthy of those we have lost.” Stearns certainly has made some things easier for Wall Street survivors. Six people were killed, including a federal judge and a 9-year-old girl, and 14 were injured. THIS WEEK Fourth-quarter and full-year earnings and, most important, Rep. Gabrielle Giffords, a Democrat from Arizona, was the target. Miraculously, she survived 2010 bonus figures! The pay numbers could come in a bit lower than in being shot in the head and is in critical condition in a Tucson hospital. 2009, but they’ll still be astounding. After all, Goldman is making lots of The accused shooter, 22-year-old Jared Lee Loughner, is not talking to investigators, but a trail money nowadays. Oh, and Mr. Blankfein’s job looks quite secure. of online videos,Twitter posts and letters pointed to an apparent obsession with Ms. Giffords and COMING SOON Those Senate investigators collected thousands of files increasingly violent tendencies. He faces federal charges of murder, attempted murder, and from Goldman for a pending report about how it and other Wall Street attempted assassination of a member of Congress. State charges are expected this week. firms conducted business in the past few years. No wet noodle, that. —aaron elstein NEW YORK CITY WAS ACCUSED OF CHEATING MEDICAID out of beaucoup bucks in a federal whistle-blower suit. Manhattan U.S. Attorney Preet Bharara says the city overcharged the federal program by tens of millions of dollars by improperly approving 24-hour personal care services for OPENS TH thousands of patients. Personal care services—including shopping and 106 housekeeping—are paid for by federal and state funds, not city money, and WEDNESDAY the suit alleges the city exploited that loophole to avoid spending its own ® money on nursing home care for the patients. … STRUGGLING MYSPACE NEW YORK BOAT SHOW ANNOUNCED ITS INTENT TO CUT 500 STAFFERS, or nearly half its work force.The has-been social media network was acquired by News Corp. in January 19–23 | Javits Center 2005 for $580 million—and promptly lost its cool to the next big thing.The job cuts come soon after seemingly unstoppable Facebook got a $50 billion valuation from a Goldman Sachs investment. … WALMART LAUNCHED A LOCAL AD BLITZ to counter what promises to be a highly unfriendly City Council hearing on its plans to open stores in the Big Apple.The retailer targeted 14 radio stations and 30 community newspapers while launching WalmartNYC.com, which helpfully touts a self-sponsored poll that finds 71% of New Yorkers are in favor of its arrival in the city. A snowstorm postponed the hearing until February. … Speaking of postponements, the opening of SPIDER-MAN: TURN OFF THE DARK WAS AGAIN DELAYED, this time until March 15, so that show creators can continue to tweak the production. It is the show’s fourth postponement, and when (if?) it opens, the show will have had the longest preview in Broadway history. … ONE OF REAP THE REWARDS OF YOUR SUCCESS! THE CITY’S TRENDIEST RESTAURANT EMPIRES CRUMBLED as chef Michael You’ve conquered the business world...now it’s time to chart your next course. White and restaurateur Chris Cannon announced they were parting ways, breaking up the Altamarea Group. Mr. Cannon will keep Alto and Find the boat of your dreams and everything to go with it at the world’s longest-running Convivio, but he will lose the chefs de cuisine of both restaurants when they go with Mr. White and his new business partner Ahmass Fakahany.They boat show. will run Marea and Osteria Morini. s(UNDREDSOFNEWBOATSEVERYTHINGFROMLUXURYYACHTSTOSPORTlSHERS —hilary potkewitz s-ARINEACCESSORIES ENGINESELECTRONICS HOORAY OY VEY PLUS…-EET2USSELL.EWBERRY STARDECKBOSSFROM$ISCOVERY#HANNELS$EADLIEST#ATCH MAYR ORO MICHAEL HE BAL T T BOATHANDLINGCLINICS (ISTORYOF"OATINGIN!MERICADISPLAYANDMORE BLOOMBERG largely DANCERS’ UNION redeemed himself in sued the New Yrkorko Produced by cleaning up after the City Ballet to block SHOW HOURS: Wednesday, Thursday & Friday Noon–9pm; New York latest winter storm. the creation of a Boat Show Thanks to all-night smaller—and Saturday 10am-–9pm; Sunday 10am–6pm Since 1905 plowing, streets were cheaper—touring Find us on clear by dawn. group. 0RE SHOP TICKETSANDDETAILSATNYBoatShow.com January 17, 2011 | Crain’s New York Business | 31 Project11:fp template.qxd 1/11/11 4:43 PM Page 1 Romano Ro Floors used the Plum Card to convert miles of shag carpeting into better customer service. Doug Romano , owner of Romano Floor Covering, was one of the rst owners to get a Plum Card from American Express OPEN. Doug used the Card’s exible trade terms to make his company’s customer service Boom without hurting his bottom line. He purchased football elds of carpeting, pads and ooring on his Card. And with the savings from the 1.5% early pay discount, Doug expanded his customer service operations by 3 employees. How can the power of the Plum Card help your business? 1.5% EARLY PAY DISCOUNT or DEFER PAY OPTION APPLY AT 1-888-OPEN-PLUM or OPEN.COM/PLUM DOUG ROMANOFF ROMANOFF FLOOR COVERING ROMANOFF-FLOORS.COM MEMBER SINCE 07 Pay the balance in full within 10 days of the statement closing date and get a 1.5% discount on virtually all purchases made that month. The discount will appear as a credit on the following billing statement. Pay 10% of the balance from new activity on your billing statement, plus the entire amount of any previously deferred payment or amounts past due by the “Please Pay By” date on that statement, and you can extend payment on the rest until the closing date of your next billing cycle, without penalty. Visit open.com/plum for details. ©2011 American Express Bank, FSB. All rights reserved.