CCRRAAIINNSSNENEWW YOYORKRK BUBUSISINESSNESS
NEW YORK BUSINESS® FEBRUARY 12 - 18, 2018 | PRICE $3.00
THE LIST Largest mergers and acquisitions P. 14
PRIVATE EQUITY’S SHOPPING SPREE P. 15
SEVEN- FIGURE SOLO ACTS P. 20
FEASTING VOL. XXXIV, NO. 7 WWW.CRAINSNEWYORK.COM HARLEM ON How a group of female entrepreneurs, including Leticia Skai Young of LoLo’s Seafood Shack, propelled the neighborhood’s restaurant revival PAGE 17 NEWSPAPER
P001_CN_20180212.indd 1 2/9/18 7:46 PM An Advertising Supplement to Crain’s New York Business
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CN018517.indd 1 1/10/18 11:49 AM FEBRUARY 12 - 18, 2018 CRAINSNEW YORK BUSINESS
ON THE COVER
PHOTO: BUCK ENNIS
FROM THE NEWSROOM | AARON ELSTEIN | SENIOR REPORTER Quite correct
THE STOCK MARKET is “correcting.” I’m not entirely clear why corrections take place only when markets fall, but such are the ways of Wall Street. Albany gets nearly 20% of its tax revenue from the city’s nancial sector, so a bear mar- ket could really put a damper on plans to x the subway system, build the Gateway rail tunnel and address other big-ticket programs. P. But the pundits say stocks have to dip by at least 20%—almost 20 twice as much as they did last week until a late rally Friday—before we’re in a bear market. In the meantime, there isn’t much to do but IN THIS ISSUE ask folks who work on the Street what they think will happen next. UP FRONT Early last week one source who manages a portfolio worth hun- dreds of millions of dollars said, “We have to wait and see how ugly 4 EDITORIAL 20 SINGLE AND WINNING this could get.” en the Dow Jones Industrial Average fell by more No easy x for city’s taxi woes A look at sole proprietorships with million-dollar revenue than 1,000 points, the largest single-day point dip in the Dow’s 121- 5 IN CASE YOU MISSED IT year history. ree days later it plummeted again. What do we do U.S. budget agreement’s 24 GOTHAM GIGS now? I asked. “We have to be prepared for anything.” What worries local winners and losers A dream to own a clothing store comes true you most? “ e things I don’t know enough about.” Such as? “I don’t 6 ECONOMY know, and that’s what worries me.” Brooklyn Chamber 25 SNAPS of Commerce’s wish list Photos from the city’s biggest Looking for some clarity, I checked out a recent report from the fundraisers and social events state comptroller’s o ce and learned that Wall Street rms today col- 7 ASKED & ANSWERED Housing and health care non- 26 FOR THE RECORD lect just 7% of their revenue from trading activity, down from 28% in pro t rebrands and expands Our tally of the week’s buys, 1991. At the same time, revenue from wealth management has moved busts and breakthroughs 8 TECHNOLOGY in the opposite direction. at sounded comforting, until I realized Reading tea leaves for Google’s 27 PHOTO FINISH that although volatility is great for traders collecting tolls as everyone two big real estate buys Performers prepare lion races for the exits, it’s bad for wealth managers, who are paid based dances for Lunar New Year 9 SPOTLIGHT on how big their clients’ accounts are. Brooklyn charter school nds In such tumultuous times, music can be a welcome balm. I recom- ways to spend wisely mend the song from e Mikado that goes, “I am right, and you are 10 REAL ESTATE right, and everything is quite correct.” Incentives spur industrial-zone hotel development 11 WHO OWNS THE BLOCK E-commerce demand is driving warehouse sales REAL ESTATE FORUM 12 VIEWPOINTS APRIL 13 Congestion pricing roadblocks; property tax math RETAIL REALITY CHECK P. With retail rents on the decline 27 but still high by historical FEATURES standards, landlords and tenants CORRECTIONS THE LIST are both in a bind. Hear from 14 Chronicled launched as a blockchain Largest mergers Saul Scherl of the Howard Hughes company in 2014. This fact was and acquisitions misstated in “Tales from the crypto: Corp., as well as owners, brokers An insider guide to the digital-currency and tenants, about strategies 15 PRIVATE EQUITY AT THE GATE craze,” published Feb. 5. for survival and success. Examining where Wall Street’s biggest fortunes are now made Dr. Dania Rumbak was a physician at NEW YORK New York–Presbyterian Hospital in ATHLETIC CLUB 17 A SEAT AT THE TABLE Washington Heights. This fact was 8 to 10 a.m. Women behind Harlem’s misstated in “Blending faith and [email protected] restaurant renaissance medicine,” published Feb. 5.
Vol. XXXIV, No. 7, Feb. 12, 2018—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double issues the weeks of Jan. 1, June 25, July 9, July 23, Aug. 6, Aug. 20 and Dec. 24, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing of ces. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, PO Box 433279, Palm Coast, FL 32143-9681. For subscriber service: Call 877-824-9379. Fax 313-446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2018 by Crain Communications Inc. All rights reserved.
FEBRUARY 12, 2018 | CRAIN’S NEW YORK BUSINESS | 3
P003_CN_20180212.indd 3 2/9/18 7:30 PM WHAT’S NEW FEBRUARY 12, 2018
AGENDAAfter years of turmoil, a tragic turn in the for-hire vehicle industry
t has been a tumultuous few years in the taxi, black-car and livery business, as Uber ushered in a wave of gig-economy drivers and changed the way many New Yorkers get around. Passengers—with the notable exception of wheelchair users—have been the big win- Iners, as they now enjoy a plethora of options at all hours of the day and in virtually every nook of the city. But for many in the industry, there has been tremendous pain. Owners of taxi medallions have seen their placards—worth DRIVEN TO upwards of $800,000 apiece four years ago—lose 80% of their value, HIS DEMISE: pushing many to the brink of nancial ruin and some of them over it. Schifter’s suicide called attention Credit unions that lent heavily to medallion buyers have been seized to the plight of by the government, and others have ramped up foreclosures to avoid for-hire drivers. the same fate. Full-time drivers spend more and more time behind the wheel to make the same money that they used to, which generally is to leave Lower Manhattan and Midtown. about $35,000 a year. And the onslaught of ride-hailing vehicles has And rides were hard to nd at peak times. congested Manhattan’s central business district like never before and e gig economy solved that by putting more drivers on the road when cost the transit system riders as well as revenue. demand surges, but it has eroded the earnings of full-time drivers. e saga took a tragic turn last week, We have no perfect solution, only a few when veteran driver Douglas Schi er There is no easy way to balance the principles. Ride-hailers in transit-rich areas wheeled his black car up to City Hall, pulled should pay extra to help fund the subways. out a gun and killed himself—a er posting competing interests of medallion Motorists should pay not just for entering on Facebook a tale of declining fortunes that owners, drivers, riders and the public congested areas but for time spent driving in many of his colleagues know all too well. His them, to reduce tra c and idling. e incen- death called attention to drivers’ plight, as he tives that add cars when people (especially intended. Unfortunately, there is no easy way to balance the o en compet- the disabled) need them should be enhanced. And with naive driving ing interests of medallion owners, drivers, riders and the public at large. recruits being lured by ads and rst-month bonuses, we need transpar- Consider calls for a cap on vehicles. Medallion owners say it worked ency about what driving entails and pays. As bad as things are now, they for taxis, pre-Uber. But while it made them wealthy, it served the public will be worse when other jobs become harder to nd. As tra c consultant poorly because many hacks bypassed black customers and were loathe Bruce Schaller warns, “Just wait until we have a recession.” — THE EDITORS
FINE PRINT City rules require property owners and occupants to clear their sidewalks of snow and ice, but when they must do so depends on when precipitation stops. If it’s between 7 a.m. and 5 p.m., New Yorkers have four hours to act. Otherwise they have 14 hours or until 11 a.m., whichever comes rst. Snow or ice too frozen to be removed must be covered with sand, sawdust or (yes) ashes. Fines range from $100 to $350.
BY AARON ELSTEIN STATS
25 WORDS OR LESS ANIMAL SPIRITS Wall Street earnings, shown with the
MARKETS RISE AND—like they did last week—fall. But S&P 500 gain for that year Wall Street rms usually churn out strong earnings no AND THE CITY matter what the Dow does. The exception was 2008, ■ Earnings (in billions) when the Street lost a massive $27.7 billion. But even ■ S&P increase They smell sweet, that was followed the next year by record pro ts of 16% “and they look like $40 billion. $23.9
32.4% 12% gummy bears. They 13.7% $16.7 1.4% $17.3 FPO $16.0 might as well say $14.3 ‘bite me’ on them.” —State Sen. Brad Hoylman on Tide detergent pods, which have been connected to scores of poisonings this year, including teens acting on dares 20162015201420132012
ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY SOURCE NYS Comptroller BUCK ENNIS
4 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 12, 2018
P004_CN_20180212.indd 4 2/9/18 8:23 PM P005_CN_20180212.indd 5
BLOOMBERG, TAMARA BECKWITH/NY POST winners and losers in NY in losers and winners D.C. creates deal budget T beverage purveyors. Industry City, joining 25other and food bar—in Sunset Park’sand a full-service market—including adining section plans to build grocery itsEastern new second outpost e fall. Middle inthe Heights to since 1948,is open set a Sahadi’s, inBrooklyn has which been e 120-year-old family-run market A movablefeast initiative that was soundly defeated. into aMassachusetts pro-charter ballot it when costly poured bet $20million itsclosed doors. e group made a group, Families for Excellent Schools, charterCity–based schooladvocacy for “inappropriate behavior,” aNew York Days a er ring CEOJeremiah Kittredge School’s out Rain one he played inPurple Prince commissioned to replicate the and awhite Clouding, guitar jewelry CafeRock May 18. Items include cloth- Prince memorabilia at New York’s Hard Julien’s of Angeles Los auction will Diamonds andpearls resigned inprotest. pany. Veteran journalist Matt Cooper laundering by Newsweek Vance Jr.’s probe into possible money ing Manhattan Attorney District Cyrus Media Group. cover three had been All Celeste Katz were red by Newsweek executive editor Ken and Li reporter Newsweek News-weak this year,this but such ideas as replacing state the income with apayroll tax lots need of tax study. income federal their see taxes go down, some families as making will up to $500,000or more. Data from Partnership the for New York City show that most single residents making about $200,000or less will deductions. But lower rates, standard higher deductions and other provisions reduce will that gure enormously. Yorkers $14billion. week Last his budget director conceded that gure reects only cap the on state tax and local Progressives might nd other rationales for positions, their but most the compelling one is o table. the users ineligible for Medicaid. Only New York and Minnesota plan, the enacted eliminates which most out-of-pocket for expenses low-income covers about 700,000New Yorkers, might injeopardy. still be cans to slash entitlement programs such as Medicaid. ailing hospitals and makes it impossible virtually for Republi 10%, provides much more to money city’s the than expected but that’s pretty far o future. inthe for economy the as huge de cits federal ination send soaring, exaggerates impact the of Congress’s bill on tax New Yorkers. taxes and portendslocal problems for Gov. he Cuomo as Andrew IN CASEYOUMISSEDIT Most say overhaul arushed experts tax of state’s the would irresponsible. code be tax Modest xes are possible Cuomo’s plan to counter bill is introuble tax the as well. e governor o en cost has New said bill the will e D.C. for is bad proposing deal those astate increase tax on wealthy households got who cut. tax afederal One caveat is that funding for Plan, Essential the which e budget increases nondefense deal spending by about Longer and tax term, the budget bills might disastrous be HE TWO-YEARBUDGETDEAL the statethe and city, undercuts arguments to raise some on Friday ensures no draconian cuts aid infederal to Editor-in-Chief Roe, Bob ’s parent com - . - reached inWashington before Meredith took over as publisher. put properties the up for last year, sale worth about $15million. Time Inc. had golf.com. is estimated e deal to be Meredith Corp.’s Golf Magazine and Emigrant runs which bought Bank, of New York Private and Bank Trust, Howard Milstein, chairman and CEO Big hitter $50 million budget. atillo end the of year. the BAM has a ing Executive Producer Joseph Mel Music’s director. artistic He is succeed become Brooklyn the Academy of Inch Angry revivals the behind of Hedwig and the David Binder, Broadway the producer BAM to comes Broadway 458-unit tower at 138Willoughby St. Development is building 68-story, the city’s highest swimming hole. Extell water the likely in nitybe pool will Point opens in2021,its roo op salt- condominiumWhen luxury Brooklyn mark water High YEAR ON THE 4.7-MILE THE STRETCH. ON YEAR EACH 118 HOURS WASTE DRIVERS U.S. THE IN ROAD WORST THE IS EXPRESSWAY BRONX SCORECARD, GESTION CON GLOBAL THE TO ACCORDING Of Mice Of and and Men, will DATA POINT ON AVERAGE, ON AVERAGE, - THE CROSS- THE THE HYPE: THE BELIEVE DON’T empty rhetoric. and morelike is lookingmore tough talkontaxes - - - Cuomo’s Realty toRealty ada er pull the one day. prompted billboard owner SL Green mainstream Complaints media. news Clinton Hillary donorsdecry and the rented aTimes Square to sign digital e Committee to Defend President the Short-circuited remain at 55 omas St. Francisco. brand Other employees will third of sta ers the are relocating to San Republic headquarters city. inthe One- Gap Inc. is o peeling its Banana splits Banana “churches wouldbeover owing.” Commissioner BillBrattonsaid, Father Petes,” Police former died Feb. 5.“Iftherewere more a beloved denizenof Elaine’s, Church onWest 42ndStreetand longtime pastorofHolyCross The Rev. Peter M. Colapietro, RIP, Father Pete — GREGDAVID — CHRIS KOBIELLA — CHRIS F EBRUARY 12,2018 [email protected] [email protected] Patty Oppenheimer, 212.210.0711, Jeanhee Kim, RobinD. Schatz 212.210.0133, [email protected] Matthew Flamm, DanielGeiger Cara S.Trager Yoona Ha, MiriamKreininSouccar, copy deskchief assistant managingeditors managing editor EDITORIAL group publisher senior executivevicepresident president chairman founder chief nancialof cer editor-in-chief emeritus secretary senior executivevicepresident president vice chairman chairman CRAIN COMMUNICATIONS INC agreement. ofMCPInc.,trademark usedunderlicense ©CityBusinessisaregistered reserved. Crain CommunicationsInc.Allrights Entire contents©copyright 2018 subscriptions withdigitalaccess. one year, $179.95twoyears, forprint $3.00 acopy fortheprintedition;or$99.95 877.824.9379 (intheU.S.andCanada). [email protected] www.crainsnewyork.com/subscribe SUBSCRIPTION CUSTOMERSERVICE manager media services Simone Pryce production andpre-pressdirector PRODUCTION reprint accountexecutive REPRINTS Jennifer Mosley, [email protected] group director, audience development AUDIENCE DEVELOPMENT events coordinator Adrienne Yee, [email protected] manager ofconferences&events [email protected] Williams,Courtney 212.210.0257, director ofconferences&events www.crainsnewyork.com/events EVENTS custom projectmanager director ofcustomcontent CUSTOM CONTENT sales coordinator [email protected] Fontanilla,Charles 212.210.0145 senior marketingcoordinator Smilowitz Stuart Lauren Black, ZitaDoktor, RobPierce, senior accountmanagers director advertising www.crainsnewyork.com/advertise ADVERTISING 685 ThirdAve., New York, NY10017-4024 212.210.0100 www.crainsnewyork.com/staff to contactthenewsroom: contributors columnist web producer data reporter reporters senior reporters photographer director art Jonathan LaMantia, CarolineLewis 212.210.0707 [email protected] [email protected] 212.210.0701, [email protected] G.D. CrainJr. [1885-1973] WillBredderman, Mrs. G.D. Mrs. CrainJr. [1911-1996] Keith E.Crain K.C.Crain LexieCrainArmstrong GregDavid K.C. Crain |
CarolynMcClain C Tom Acitelli, TheresaAgovino, GeraldSchifman BuckEnnis ChrisKobiella RAIN’S NEWYORKBUSINESS Mary Kay Crain Mary Mary Kramer Mary Telisha Bryan JoeAnuta, AaronElstein, BrendanO’Connor Devin Arroyo, AshleeSchuppius, IreneBar-Am, Robert Recchia Robert RanceCrain NicoleSpell Danielle Brody, LaurenMelesio,
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C R A I
N S NE W YO RK BUSI NESS ECONOMY
Dreamy projects envisioned for struggling Brooklyn areas Business group seeks major public investment in forgotten corners BY WILL BREDDERMAN
or its 100th birthday, the and a 1-line extension into Red Hook New York, though Brooklyn Chamber of Com- as important transit developments for the impoverished merce is seeking some big the economy. But perhaps the most area is adjacent to A RENDERING of what’s possible above Sunset Park’s rail yards gi s. e business group ambitious and imposing project it rec- Broadway Junction, Funveiled an economic plan for the next ommends is the three-borough X line, where the A, C, J, L, M and Z lines con- suggested, would be a public-private hundred years. Funded by a $100,000 also called the Triborough RX. First verge near ve bus lines and a Long venture involving nearby Kingsbor- federal grant, the study calls for rezon- suggested by the Regional Plan Associ- Island Rail Road station. e report ough Community College’s Kitchen ing and policies to spur housing and ation in 1996, it would link a patchwork suggests using public properties there Ventures Incubator Program, a hos- commercial space. It also urges major of existing tracks and rights-of-way to to create a commercial center, perhaps pitality- and culinary-training center city, state and federal investment in run a train from Sunset Park to Brook- with a SUNY or CUNY campus. at for residents. overlooked areas. lyn College, through East New York would encourage riders to stick around Fort Hamilton Army Garrison. at has worked before, the chamber and into Queens, then up to Yankee and create jobs for residents. Hoan called the U.S. military’s lone argued, pointing to the government- Stadium in the Bronx. “It’s space, it’s education, and it’s remaining outpost in the city “a aided Barclays Center and the New e Metropolitan Transportation transit,” Hoan said. “And we believe remarkable federal asset that we believe York Marriott at the Brooklyn Bridge Authority could mitigate the massive that’s the future at Broadway Junction.” is underutilized.” e way to unleash its as keys to the borough’s renaissance. costs by selling private developers the Cooking up Coney Island. e potential? Bring a cybersecurity incu- “We have to start asking what’s next right to deck over and build atop the famed amusement area and board- bator and rst-responder training cen- for Brooklyn, and how do we make sure tracks, according to the chamber. walk received substantial city invest- ter to the southern Brooklyn complex, that this place stays as cool as it is, and “ is, to me, is the project of the cen- ment under former Mayor Michael combining its defense-oriented func- as innovative as it is, and as welcoming,” tury,” Hoan said. “You already have the Bloomberg. But New York’s winters tion with education for a burgeoning chamber President Andrew Hoan said. pre-existing right-of-way, and our most have chilled eorts to make it a year- sector of the economy. Hoan pointed e report has four major proposals. valuable asset—more land—right there.” round destination, and local pov- to past conversions of federal proper- New mass transit. e report rates New functions at Broadway Junc- erty—in part a result of concentrated ties—notably the Brooklyn Army Ter- proposals for a Brooklyn-Queens con- tion. Few areas have proved as immune public housing far from job centers— minal and Navy Yard—into hubs for
RAYMOND CHAN ARCHITECT RAYMOND nector, a Utica Avenue 4-line extension to Brooklyn’s rising a uence as East has persisted. A remedy, the chamber innovation and job growth. ■
6 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 12, 2018
P006_CN_20180212.indd 6 2/9/18 6:41 PM ASKED & ANSWERED NONPROFITS INTERVIEW BY JOE ANUTA
SCOTT SHORT RISEBORO COMMUNITY PARTNERSHIP
fter 16 years at the Ridgewood Bushwick Senior Cit- izens Council, Scott Short took the reins of the orga- nization and promptly rebranded it. The housing and Nonpro ts are health care nonpro t, created by late Albany power judged by how low Abroker Vito Lopez, is now RiseBoro Community Partnership. “ we keep overhead, but that sti es What is your coverage area, and where do you want to expand? innovation Historically it has been very focused on Bushwick, though we have been providing home care and Meals on Wheels through- out Brooklyn and parts of Queens for more than 20 years. We operate senior centers in Bed-Stuy, Brownsville and East New York, and develop and manage housing across northern Brooklyn. Recently we acquired a Bronx development site in Woodlawn and were awarded the 1,100-unit Hunter’s Point South mixed-income development along with the Gotham Organization. We also won the right to develop a senior housing project in Nolita.
Your core neighborhoods are gentrifying. Has that affected your mission? We’ve seen increased demand in providing legal services to tenants in housing court due to a huge uptick in tenant harass- ment. Some buildings are being purchased at a price that is only justi able if the buyer gets all the rent-regulated tenants out.
But aren’t there upsides to private investment in these neighborhoods? We strive to ensure that pro t generated by gentri cation gets reinvested into the community. That’s the main problem: There is value in low-income communities. When it is exposed, outside in- terests come in, capture that value themselves and take it to their shareholders with mansions in Greenwich, Conn., or wherever.
How do you combat that? DOSSIER It’s important that the city chooses nonpro ts to develop and op- erate public projects, because that way you have a guarantee the WHO HE IS Chief executive, money will be reinvested in the community. RiseBoro Community Partnership REVENUE $130 million What changes are you seeing in the senior-care part of your business? EMPLOYEES 2,000 The state is essentially throwing for-pro ts and nonpro ts in the SALARY $366,000 same bucket and making us compete for the same business. AGE 39 How is that working out? BORN Tacoma, Wash. Nonpro ts are judged by how low we keep overhead. That sti es RESIDES Park Slope innovation and drives everyone to meet the terms of a contract EDUCATION Bachelor’s in political as cheaply as possible. The world’s most successful companies science, Brown University spend 40% or 50% of their budget on fundraising, marketing and IN NETWORK Short sits on the R&D. But a nonpro t spending more than 10% raises a red ag. Enterprise New York Advisory Board as well as the boards of the LISC What does that mean for building home health care business? Partners Policy Council and the We can’t pass out iers to people on the streets or coming out of Association for Neighborhood and the hospital, or build relationships with the hospital discharge staff Housing Development, among others. as much as we’d like. We don’t have the marketing budget for that. FOOD FOR THOUGHT RiseBoro serves more than 1 million hot meals Should home health care workers be paid per hour for 24-hour shifts? each year through various programs.
If people are actually working 24 hours, then they should be paid BUCK ENNIS for 24 hours. A deal needs to be worked out on the state level to make sure that we don’t bankrupt the home-care system but we also pay people for the hours they are working.
Has funding suffered since your advocate in Albany, Vito Lopez, died? Our state funding has actually expanded since Lopez left power. Our challenge is more from the national retrenchment of funding services for the poor. Everyone is asking us to do more with less, and the contracts don’t pay enough to provide the services they ex- pect. Any nonpro t now must have outside, unencumbered funds. ■
FEBRUARY 12, 2018 | CRAIN’S NEW YORK BUSINESS | 7
P007_CN_20180212.indd 7 2/9/18 6:32 PM TECH
In search of more space, Google inks two big deals Chelsea Market and Pier 57 expand the company’s local footprint BY DANIEL GEIGER
ays a er the news that Google’s parent company, Alphabet, is purchasing Chelsea Market for $2.4 Dbillion, Google reached a tentative deal to grow even more in the city. Under the proposed arrangement, the $700 billion company will expand at Pier 57, an under-renovation com- plex on the Hudson River across from West 15th Street. Google had previously agreed to lease 250,000 square feet at the complex and now plans to add 70,000 of o ce space. An additional 50,000 square feet of its footprint will be used for public, cultural and educational activities and a ferry landing. Hudson River Park Trust, the city- and state-run entity that controls Pier 57, presented the proposal to Commu- STAYING AFLOAT: Google will occupy more than 300,000 square feet of the under-renovation Pier 57. nity Board 4 at a meeting Feb. 8. Mad- elyn Wils, president and CEO of the trust, said its board would vote within Wils said the trust will use a por- the once-derelict pier along with real e deal would repurpose a large the next few months on whether to ap- tion for the 400 educational programs estate rm Youngwoo & Associates, area originally envisioned as a cav- prove the deal, depending on the feed- it hosts annually for children about cli- said Google would host technology- ernous food market, which celebrity back it receives. mate change and the wildlife and plants education programs for disadvantaged chef Anthony Bourdain had at one “We want to make sure that the in Hudson River estuaries. city youth and use the facility for prod- time been negotiating to operate. Un- community is good with this,” Wils told “Google acknowledged our edu- uct demonstrations. der the revised plan, that food market Crain’s. “We think that they’re getting a cation program and o ered to give “What makes this such an exciting will shrink to about 40,000 square feet, lot, and we hope that they like it.” us a space here so we can expand our announcement is that Google is com- about 100,000 square feet smaller than If the deal goes through, Google will teaching,” Wils said. “We’re exploring mitting to make a very signicant con- originally planned. create a 5,000-square-foot public area the possibility to have a virtual-reality tribution to the public,” Pinsky said. e pier’s ground oor will include on the south side of the pier featuring space where people could actually look RXR and Youngwoo said they will 20,000 square feet of restaurant and re- views of the harbor and 24,000 square and see what’s in the water.” provide Hudson River Park Trust with tail space, including pop-up stores. A feet of community and education space roughly $20 million in proceeds from restaurant will be located on the pier’s partially located in an underwater cais- People’s choice the expanded lease during its 15-year roof, which will also feature a large son—a watertight sub level that was Seth Pinsky, an executive vice pres- term to help fund the entity’s operating public park. built to provide the pier with enough ident at RXR Realty, which is handling budget. e terms of the lease were not RXR has said it is aiming to nish buoyancy to oat. the $350 million redevelopment of disclosed. the project by the end of next year. ■
Google’s New York roots were planted in the 1990s Acquiring DoubleClick was key to local growth BY GREG DAVID
THE NUMBER THAT GRABBED every- vious tech boom. Serial so ware en- one’s attention last week was the $2.4 trepreneur Kevin O’Connor founded a billion Google’s parent company, Al- rm in Atlanta in the early 1990s that phabet, paid to buy Chelsea Market. could place ads on websites as the in- Here is another digit that should get ternet started gaining traction. Atlanta equal attention: 7,000. at’s the num- was not a good place for an ad compa- ber of people Google currently em- ny of any kind, so he moved to New ploys in the city. When it starts to ll York and renamed the rm Double- BUYING THE STORE: Google’s city headquarters is across the street from Chelsea Market. the space it has acquired—which likely Click. e company expanded rapidly also will include Pier 57 (see above)— and went public. For a brief moment Google will easily become one of New O’Connor’s stock holdings made him rm Hellman & Friedman bought it William Floyd, Google’s head of exter- York’s top 25 employers. the city’s rst tech billionaire. for $1.1 billion. Two years later, Google nal a airs, said last month that every e company’s big real estate buys swooped in and paid $3.1 billion for business line of the company now has are the latest sign of how important Sales savvy DoubleClick, hiring some engineers a team in New York, with more work the tech sector has become to the city, But when the tech bubble burst, but, more important, grabbing the on Google Cloud expected to be done and it is worth detailing how Google DoubleClick faced hard times and internet-savvy salespeople it needed. here in the near future. He said Google grew here and what those 7,000 people went through repeated rounds of lay- Today 60% of those 7,000 em- wanted to grow but was hemmed in actually do. o s and cutbacks. e stock tanked. ployees are computer engineers; the by its real estate holdings. Apparently e story begins with the most im- When the market showed some signs remainder work in sales, operations, they’re working on a solution to that
RXR REALTY, BUCK ENNIS RXR REALTY, portant New York company of the pre- of recovering in 2005, private-equity public policy and other functions. problem. ■
8 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 12, 2018
P008_CN_20180212.indd 8 2/9/18 7:28 PM SPOTLIGHT NONPROFITS
Charter’s lesson plan for smart spending Savings create opportunities for school to self-invest BY KIM VELSEY
hen Matt Harrington graduated from NYU with a master’s degree in education and social policy, he gured he would become a data analyst crunching stats for the Department of Education. An administrative internship at P.S. 770 in Crown Heights changed his mind. Financial management—espe - ciallyW nding cost savings—became his unlikely passion. “I fell in love with it,” said Harrington, now director of operations at e New American Academy Charter School. At the East Flatbush elementary school, which opened in 2013, his zeal for rooting out ine ciencies and being thri y has produced a $1.3 million cumulative surplus—a feat given that the school lacks a corporate partner and a PTA, relying solely on per-pupil government funding. While charter schools are known for educational experimentation, their - nances are o en a dierent story. Raj akkar, founder of Charter School Busi- ness Management, which consults for New American, said it is not uncommon for charters to dismiss nancial management as a bit of bookkeeping. “But it’s much larger than that,” said akkar, who has seen schools closed for nancial mismanagement. “You’re being given millions of public dollars, and there’s a lot of accountability that comes with that.” New American is a Title I school, meaning that a large percentage of its 365 students comes from low-income households. Admission is lottery-based, with a preference for students from District 18, which includes Brooklyn’s East Flatbush, Canarsie and Brownsville. e school covers such student expenses as healthful daily snacks, eld trips and enrichment programs (lunches are free because it is a city public school). It also oers scholarships to pay for the required uniforms. While reading scores rose last year, they are lower than the state average for nancially challenged students. Statewide, 29% of them achieved pro ciency in reading, while 21% did at New American, up from 16% the year before. Harrington said New American does not focus on test prep and enrolls many special-needs students. A er a two-point drop in math pro ciency last school year, it is sinking money into improving math instruction, in particular to meet benchmarks under the state’s revamp of what had been the Common Core standards.
Freedom to save CLASS ACT: Harrington Harrington’s passion is nding cost savings that can be plowed back into pro- has saved $1.3 million grams for students and teachers. He has made a practice of ordering from vendors in New American’s rst that traditional public schools can’t use because of regulations. “We make a lot four budget years. of purchases through Amazon,” he said. “Why not buy a used library book from Sheboygan, Wisc.?” Insurance is another big money-saver. New American has conserved thou- sands per year by self-insuring for unemployment rather than using the state’s pooling system. While riskier, self-insurance allows the school to focus on em- ployee retention and reducing turnover. To that end, Harrington has tried to maximize bene ts, which include a $1,500 annual “life elective” stipend, which teachers have used for everything from tak- ing a yoga class to becoming a U.S. citizen. Additionally, teachers pay low pre- miums and nothing else for health care, a boon that Harrington engineered by pairing high-deductible health plans with cards that reimburse expenses up to the $6,850 individual out-of-pocket maximum. e school allocates resources to its teachers, who can buy whatever supplies they deem necessary. Teacher Jennifer Trani said that at her previous job—in a low-income district in San Diego—she paid for everything from reams of paper to eld trips out of pocket. “I was literally photocopying books” she said. “When I came here, I was like, FOCAL POINTS Wow, I can actually aord to do the science activity.” e school also invests heavily in professional development, paying for pro- grams at Columbia Teachers College and Harvard. Because of this—plus a policy INDUSTRY Nonpro t education that pairs one “master teacher” per grade with “line teachers,” who do the in- FOUNDED 2013 struction—the school has attracted a number of younger, less- experienced edu- LOCATION Two oors of P.S. 233, Langston Hughes School, in East Flatbush cators. is, in addition to a lean administrative sta, reduces payroll costs. And the school maintains low turnover by paying salaries that can reach as high as EMPLOYEES 46; STUDENTS 365 $132,000 for master teachers. REVENUE Approximately $5 million in 2016–17 from state and local aid, “We believe that the success of our students is contingent on the quality of our plus federal Title I and Title II funding teachers,” said principal Lisa Silva. “By eectively managing the budget, Matt is SURPLUS $260,000 in 2016–17 (going toward a move to its own building) able to ensure that all sta are treated and paid like professionals.” New American seeks to eventually move to its own building—it currently GROWTH The school started with only kindergarten and rst-grade classes. shares space with the elementary school P.S. 233—and to expand past h grade It has since expanded to a K–5 setup, back lling through the older grades, to a K-8 structure. Harrington hopes to model best practices for all schools. which also increases revenue. This past year economies of scale enabled New American to add a technology teacher and a music teacher. “ at’s one of the ideas of charter schools: to experiment and learn, and to
BUCK ENNIS bring those things back to public education,” he said. ■
FEBRUARY 12, 2018 | CRAIN’S NEW YORK BUSINESS | 9
P009_CN_20180212.indd 9 2/8/18 11:08 AM REAL ESTATE
THE WYTHE, in Williamsburg, and other hotels City curbs hotels, yet keeps receive a bene t intended to aid giving them tax breaks industry. Incentive program pushes out jobs it was created to save BY DANIEL GEIGER
he Wythe Hotel in Williams- Hotel development has spread rap- burg has been so success- idly into those areas as tourism in the ful in recent years that it city has set record highs year aer year. inspired the construction of Because hotels such as the Wythe Ttwo similarly hip competitors next door. tend to be more lucrative than indus- e new William Vale and Wil- trial and other commercial uses in liamsburg Hotel likewise boast lavish many areas of the Bronx, Brooklyn and rooms, spacious roof decks and trendy Queens, hotel developers can a ord to eateries and bars. pay more for land. Also, unlike retail And, like the Wythe, they either and residential uses, hotels generally “ ere are internal discussions about in November. “ e proposed action is have secured or sought a lucrative ben- have not needed special permission next steps with the program,” said a an unnecessary constraint on the rights e t that will allow them to pay little if from the city to be in areas zoned for spokeswoman for the EDC, which helps of property owners.” any property tax for years to come. manufacturing. e result has been promote ICAP and other city subsidy Some observers have posited that Little recent attention has been paid that hotels have been supplanting man- programs. “However, we don’t have any instituting a special permit rather than to the tax breaks, which have helped ufacturing and industrial businesses updates to share at the moment.” tweaking ICAP to deter hotel develop- developers build a wave of hotels in that once populated Williamsburg, Instead, de Blasio has sought to ment is being done at the behest of the onetime industrial neighborhoods—a Long Island City and similar areas. require a special permit for any hotel Hotel Trades Council, which represents pattern that Mayor Bill de Blasio has project on property zoned for manu- workers at many city hotels. e polit- decried for pushing out manufacturers. Program promotes development facturing, a process that entails City ically powerful union has long pushed e city’s Industrial and Commercial Real estate investment rm Mad- Council approval. e City Planning for various special-permit require- Abatement Program dates back to the ison Realty Capital has estimated that Commission is said to be readying to ments, which its opponents say allow 1970s. ICAP was intended to spur land- 10 million square feet of industrial begin a review in the spring that is nec- it to pressure mayors and City Council lords to invest in their real estate when space has been converted to hotels or essary to institute that special permit. members to block hotels that would not few were doing so, and to attract and other uses in the city during the past e real estate industry is opposed, use union labor. Almost all hotels built strengthen manufacturers, like those decade. e tax break has fueled that. calling such a regulatory hurdle oner- in recent years in manufacturing areas that once thrived in Williamsburg. “ICAP is a blunt instrument and ous and unnecessary. have been nonunion. e program nearly zeros out prop- unquestionably results in unintended “ e special permit requires a devel- e Hotel Trades Council denies erty taxes for as long as 15 years and or unforeseen consequences,” said Seth oper to go through a uniform land-use that is its motivation. discounts them for up to a decade Pinsky, a former president of the city review process that is e ectively two “ e proliferation of hotel over- beyond that. e William Vale, for Economic Development Corp., who years long, which is time-consuming, development in out-of-context areas, instance, used ICAP to wipe out about helped reform the program in 2008. “It unpredictable and expensive,” said such as manufacturing zones, threat- $1.7 million of its roughly $1.8 million would surely be in the interest of the Mitch Korbey, chairman of the land-use ens the safety of neighborhoods and recent annual tax bill, according to the city to look closely at ICAP again to and zoning group at the law rm Herrick leads to an oversaturation of the city’s city’s Independent Budget O ce. e ensure that it aligns with the needs and Feinstein. “It will have a chilling e ect hotel market, which is a key driver of Williamsburg Hotel sought the bene t policy goals of today’s New York.” on hotel development at a time when we our economic engine that creates good, but missed a deadline to apply; sources e city’s Department of Finance need hotels to accommodate our boom- middle-class jobs for tens of thousands said the developer is still seeking to said 61 hotel properties have received ing tourism and growing economy.” of New Yorkers,” said Jason Ortiz, the qualify for the program. ICAP bene ts since 2012, costing the Korbey favors a more compre- council’s political director. Ironically, the incentive has helped city $87 million in forgone taxes. hensive approach to protect the city’s Opponents of the special permit and to elbow out some of the businesses it Even as the mayor has expressed industrial centers. “Zoning is a blunt those who also favor the status quo on was created to preserve. concerns about hotels encroaching on instrument,” he said. ICAP say the current loose restrictions “It appears to have fostered hotel industrial areas, his administration has e Real Estate Board of New York, on development and big tax incen- growth in areas like Gowanus, Sunset done little to examine ICAP’s role or to the industry’s biggest lobbying arm and tives available to builders have aided Park, Williamsburg and other neigh- suggest changes. A boundary commis- professional association in the city, has the tourism boom by allowing tens of borhoods that were once primarily sion, a body controlled by the mayor that spoken against the special permit. thousands of rooms to be created in industrial,” said Doug Turetsky, chief is charged with evaluating the program, “It is vital that hotel development not recent years. e added supply has kept of sta at the IBO, which has studied has not met since 2015. e commission be constrained so that supply can keep pace with increased visitation and has ICAP and its predecessor, the Industrial and the city may not alter ICAP, but they pace with demand,” the group stated in prevented room rates from soaring, Commercial Exemption Program. can ask the state Legislature to do so. testimony to the Planning Commission according to industry analysts. ■ Loophole exploited by tower developers may be closed
Builders have used stilts to jack up heights—and prices BY JOE ANUTA
THE DE BLASIO administration is tak- top is not what was intended” by the zoning. It works because of the Upper East Side, ing aim at developers’ practice of stack- zoning code, said Marisa Lago, chair- oors for mechanical equip- said at the town hall. ing luxury condos atop multistory hol- woman of the City Planning Commis- ment are exempt from the How the city will close low spaces to achieve greater heights sion, at a recent town hall meeting. “We limits. By stretching the ceil- the loophole remains un- P PHOTO A and more lucrative sales. are already working under the may- ing of one or more mechan- clear. e Buildings De- e Department of City Planning or’s direction with the Department of ical oors to an extreme partment has repeatedly is working to change how it treats such Buildings to see how we can make sure height, developers create signed o on the voids, large voids, which do not count against that the intent of the rules is followed.” a pedestal upon which to ruling that they do not a building’s density cap. Limiting the stack pricey units. violate the zoning code. size of what are essentially stilts would Tall ceilings for equipment “We have a building on To change things, sta shrink the height of future towers. Putting a building on stilts is a 62nd Street that we have members could start in- “ e notion that there are empty common gambit used by luxury- challenged … that has a 100-foot oor- terpreting the code di erently, or the spaces for the sole purpose of making condominium developers to boost a to-oor void in the middle,” Rachel city could simply rewrite the rules, a
BY MICHAEL KORFHAGE , ILLUSTRATION the building taller for the views at the project’s height while complying with Levy, executive director of the Friends process that generally takes months. ■
10 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 12, 2018
P010_CN_20180212.indd 10 2/8/18 5:47 PM WHO OWNS THE BLOCK
46-06 57TH AVE.
E-commerce delivers increased demand for local warehouse space A deal in an industrial enclave of Queens hints at change on the horizon
BY TOM ACITELLI
43-10 57TH AVE. ky-high towers will always get the head- Jetro, a Queens-based restaurant lines in New York City, but a decidedly and catering supplier, bought this unsexy sector of real estate has emerged 111,000-square-foot lot for $7.5 mil- as a hot investment: warehouses. A recent lion in 2012. The site had sold for $8.15 million in 2006, during the pre- Sdeal in a corner of Maspeth, Queens, near the bor- vious real estate boom. der with Brooklyn, highlights this reality. San Francisco–based Prologis is buying a new 43-02 57TH AVE.
362,000-square-fooot warehouse along New- 43-40 57TH AVE. Jetro also took this 65,227-square- town Creek in Maspeth for about $265 million. foot lot beside the Brooklyn-Queens e seller, Charlotte, N.C.–based SunCap Prop- Jetro bought this more than Expressway for $6.3 million in 75,000-square-foot warehouse 2016. It sold for $8 million in 2005. erty, bought the parcel for less than one-fourth from Galasso Trucking for that in May 2016 and developed the warehouse $13.7 million in 2012. for FedEx. A spokeswoman for Prologis declined to comment on the deal, which has not closed. 46-06 57TH AVE. e area around the warehouse is full of simi- Prologis, a major owner of industrial lar industrial storage and real estate, is buying this new ware- house, which FedEx plans to use as a distribution properties, in- delivery hub, for about $265 million, 48-01 58TH ROAD cluding for trucking, ship- sources told Crain’s. SunCap Property The city owns this 162,325-square- ping and waste-carting. Group developed the approximately 362,000-square-foot property last foot commercial property. The e city has far fewer year. It bought the site for $55.8 mil- Department of Sanitation uses it such hubs than it used lion in May 2016, when it was vacant. as a garage to service surrounding Queens neighborhoods. to. Areas such as the The sale included a lot behind it. Williamsburg-Greenpoint waterfront and Long Island City have been reborn as mixed-use residential in 57-22 57TH ST. the past two decades. Northern and central Maspeth–based Dorose Holding Corp. bought this nearly 111,000-square-foot 44-12 57TH AVE. New Jersey now dominate warehouse for $11.5 million in 2011. the region’s warehouse The seller was plumbing wholesaler Galasso Trucking, a family-run company in market. Cushman & Wake- Davis & Warshow. Frank Finkel runs both Queens, bought this 122,000-square-foot Dorose and Davis & Warshow—though lot for $6.5 million in 2006. eld in October reported Ferguson Enterprises, the nation’s largest demand for industrial space, plumbing distributor, owns Davis & War- especially warehouses, was show. Ferguson leases the space from Dorose, which it did not acquire. at “century highs.” e same e-commerce boom empty- ing traditional retail space is lling up warehouses. “As online sales steadily grow, the need for both e-commerce and logistics companies to locate near mass-populous regions remains important,” 287 MASPETH AVE. Andrew Judd, a C&W executive in one of the bro- Energy giant National Grid kerage’s New Jersey o ces, said in the report. owns this more than 5 million- Younger consumers in particular are increas- square-foot complex and lot in East Williamsburg. ingly opting for same-day or one-day delivery. at means demand for warehouse space near large population centers is sure to grow. ■ GOOGLE MAPS, DANIEL GEIGER
FEBRUARY 12, 2018 | CRAIN’S NEW YORK BUSINESS | 11
P011_CN_20180212.indd 11 2/8/18 6:51 PM VIEWPOINTS
How outer-borough New Yorkers get to work Incomes of outer-borough
Rough road ahead Other modes residents commuting to for congestion pricing to Manhattan Manhattan by car Mass transit to places Other modes 55% other than Manhattan 1% Cuomo has little time and lots of competing interests to please not to Manhattan By car to 25% 11% Manhattan 4% THE BEST near-term Cuomo generally endorsed the idea. 28% step to x the tran- But when he unveiled his state budget 31% sit mess—congestion proposal for the scal year that starts 29% pricing—faces a cru- April 1, he did not include a speci c 12% cial deadline this plan that people could support, and the week, and all eyes ideas he did propose—such as captur- Mass transit By car 4% to Manhattan not to are on Gov. Andrew ing city property tax revenue created by Manhattan Poor Near Moderate Higher Cuomo. transit improvements and diverting it poor income income GREG DAVID Last week I wrote to the MTA—were simply another way SOURCE: Community Service Society of New York that the business to torture Mayor Bill de Blasio. community was MIA on the ursday, Feb. 15, is the transit issue. (Kathryn Wylde, next deadline for the gover- uence MTA expansion plans. e support his plan. It just might be president and CEO of the % nor to make major changes to MTA has ignored those concerns in the headlined the Campaign for the 96%, Partnership for New York City, his proposed budget. Business past and created a lot of ill will in the jumping o a Community Service So- makes the opposite case on the groups and transit advocates Legislature and City Hall. ciety of New York study showing the 20SHARE OF next page.) But let us look at are looking for a clear sign that e governor also will have to g- congestion-pricing fee would be paid what happens next. congestion fees Cuomo is committed to con- ure out how to mediate the mayor’s by 4% of city commuters—and in gen- e story up until now suburbanites gestion pricing and will put all demand that all the congestion fees be eral the ones who can a ord it. is that the governor, clearly would pay his considerable skills behind spent in the city against suburban leg- If the governor doesn’t act decisive- su ering politically from the getting it enacted. islators’ demand that some be spent on ly this week, then business and other transit meltdown, appointed the Fix He will certainly have to present their constituents, who will be paying groups will hold back. No one wants NYC panel, which produced a report more details on how such a plan should about one- h of the money collected. to get out in front of a losing issue. It calling for a modi ed congestion-pric- work. In the end it will need to im- e budget amendments must spell out won’t close the door on a solution, ing plan. Congestion pricing is the key pose a fee on cars entering the central the speci cs or at least outline a way to but it will make reaching a deal much because it would produce desperately business district, add a signi cant sur- develop them. more di cult. ■ needed money for the Metropolitan charge to ride-hailing services such as If Cuomo does make his support Transportation Authority and reduce Uber and create a way for government clear, then business and other groups GREG DAVID blogs regularly at tra c in the central business district. o cials—especially legislators—to in- will publicly launch a campaign to CrainsNewYork.com.
OP-ED PROPERTY TAX LEVY INCREASE, 2013–2017 If the mayor didn’t raise New York City property taxes, who did? 38% Buffalo, Rochester, Syracuse, Utica and Yonkers BY MARTHA STARK As levy goes up, we need reform, not doublespeak 5.4% Nassau, Suffolk and Westchester counties uring a recent radio ap- 4.3% pearance, Mayor Bill de Blasio said—not for the rst time—that he has not Draised property taxes. But the property If the city doesn’t act, the state Before we can x the system, it is im- tax levy, which is the total amount the should. Some jurisdictions, including portant that all New Yorkers know the city aims to collect and which the city New York state, have addressed taxpay- facts about the city’s property tax and alone determines, has jumped to $27.7 er discontent by limiting how much the how it a ects them individually. I tried billion from $20.1 billion when he took property tax levy can climb each year. to do this when I was the city’s nance o ce four years ago. Except in New York City, state law limits commissioner from 2002 to 2009, but Perhaps the mayor is confused be- localities to increases of 2% or the rate explanations on billing statements only cause the average citywide property tax of 02in ation, whichever is less. So while 0%go so far. 40% rate he inherited, precisely 12.283%, the city’s property tax levy has increased Among other things, people should has remained unchanged. However, dramatically since 2013, other jurisdic- understand why their property tax bill is no property owner pays that rate, and tions have seen modest increases. higher when the rate has not increased. the mayor doesn’t actually set it. What For example, the combined levy e property tax is too important a rev- he determines is the property tax levy. OPAQUE SYSTEM: The only thing most New increase since 2013 for Bu alo, Roch- enue source—it funds schools, police, Yorkers know about property taxes is that at has increased year a er year, they keep going up. ester, Syracuse, Utica and Yonkers has re ghters, libraries, sanitation services thanks to rising property values, and been 5.4%, and just 4.3% for Nassau, and other government operations—to will grow by $1.9 billion in the scal Su olk and Westchester counties—a be shrouded in misinformation. year starting July 1. sessments rise, it reduces rates to keep far cry from the 38% increase in New We need to clear the fog obscuring While it is surprising that de Blasio the tax levy at, or obtain approval for York City during that time. how the property tax works so a fair and is not accurately explaining how our the resulting tax increase. Had the city been subject to the cap, equitable system can emerge. ■ property tax works, it is understand- Such “truth in taxation laws” are the levy today would be only 10.4% able. e system is opaque and bewil- in place in Maryland, Tennessee, Tex- higher than it was at the beginning of Martha Stark is policy director for Tax dering. But whether he misunderstands as, Utah and Virginia. Before the City the mayor’s tenure, or $22.2 billion. Equity Now New York, a coalition of it or is being disingenuous, it is cause Council adopts the annual budget, the at would, in theory, have le $5.5 bil- homeowners, civil-justice organizations for concern for all New Yorkers. city would have to hold public hearings lion more in New Yorkers’ pockets this and rental-property owners suing the e city should consider adopting to explain if and why a higher levy was year. For a population of 8.55 million, city to reform the property tax system,
BUCK ENNIS a law requiring that when property as- warranted. that’s an average of $643 per person. which it calls discriminatory and unfair.
12 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 12, 2018
P012_CN_20180212.indd 12 2/8/18 6:56 PM FROM OUR READERS Business executives have not forgotten civic duty
GREG DAVID is free to question a Better New York, New York LAW DESERVES AN F the political clout of the city’s Building Congress, Real Estate Udi Meirav’s op-ed, “How to business community, but he Board of New York and many earn an A for your building” has no basis for his doubts transit and environmental (CrainsNewYork.com), sadly about the commitment of advocacy groups are sub- misses the mark. today’s business leaders to a stantially funded by business Meirav’s assertion that rst-rate transit system (“As and rely on the expertise of recently enacted Local Law subway goes down the tubes, the business community to 33 is a key part of the city’s business sits on its hands,” inform their research, plan- plan to reduce greenhouse-gas BUILDINGS published Feb. 5). ning, advocacy and outreach emissions by 80% by 2050 have cut activities on behalf of im- is simplistic. While posting emissions by proving our transportation letter grades will raise public 19% but are targeted by infrastructure. consciousness on the issue a new law. Nostalgia about how great of sustainability, it will also things were in the past is con- misrepresent a building’s true tradicted by the fact that New energy e ciency and do noth- York City transit is, despite ing to reduce emissions. its problems, in considerably e law takes a grade- York City buildings. It will emissions per capita in the better shape today than in the school approach, assigning an only incrementally improve country. City buildings’ emis- last decades of the 20th cen- A to a building with an Ener- a building’s Energy Star score sions fell 19% between 1990 tury. We intend to continue gy Star score of 90 or above, because the technology a ects and 2015, despite a historic working with MTA leadership, though the Environmental only base-building energy construction boom, and will as well as the governor, mayor, Protection Agency—the consumption, which rep- continue to do so through WYLDE state Legislature and City federal o ce that administers resents a fraction of a build- technological advances and Council, to keep it that way. Energy Star—recognizes a ing’s energy use. sensible retro ts. Going More senior business building scoring 75 as a top Tenants consume the vast forward, we need to adjust Literally every busi- executives live, work and are performer. Under the city’s majority of energy through Local Law 33’s misguided ness-backed civic, industry deeply engaged in the ve bor- law, that building would lighting, computing and other scoring system and nd ways and advocacy organization oughs now than at any time I receive a B. power demands. Moreover, to promote tenants’ awareness has put the maintenance can remember. e fact that Meirav writes that HVAC installing demand-control of energy e ciency. and modernization of the David does not know their load-reduction technology, ventilation in buildings CARL HUM Metropolitan Transportation names is probably more a a form of demand-control bigger than 50,000 square feet General counsel Authority at the top of its function of their vast numbers ventilation, realizes energy would reduce greenhouse-gas Real Estate Board of New York agenda. e Partnership for than anything else. e ciencies that will push emissions by an average of just DANIEL AVERY New York City, Regional Plan KATHRYN WYLDE buildings into the A range 1.2%. Director of legislative affairs Association, Citizens Budget President and CEO under Local Law 33. at Keep in mind that the city Building Owners & Managers Commission, Association for Partnership for New York City will not be true for most New and the state have the lowest Association of Greater New York
HE BLAMES BIKES New Yorkers” (Feb. 5) misrep- buildings with the aim of de- buildings with a commercial Hub in Union Square if there I enjoyed “De Blasio warms resented my position on the regulating them by any means FAR of 6.0 . are ironclad commitments a bit to congestion pricing as Tech Hub planned for East necessary. Roughly 60% of the build- to ensuring that the tech- Cuomo plan leaks” (Crains 14th Street. e editorial’s It is with the loss of ings have a built residential education and job-training NewYork.com). What a crisis, premise is that tech compa- a ordable housing in mind FAR under 4.0. Given these programs that the hub will but it is deliberately created. nies bring jobs to the city that community groups have disparities, speculators have contain truly serve the most When you install bike and adding thousands of tech pushed for not just stronger enormous incentive to buy disadvantaged segments lanes that cater to the lowest- workers will have minimal regulatory protections for ten- up several adjacent proper- of our community and the velocity, lowest-capacity impact on rents, claiming ants but also appropriate re- ties in this emerging Silicon space being made available to and lowest- density mode of that despite the city gaining zonings, including contextual Alley, buy out the remaining tech startups bene ts mi- transportation, you throttle 502,000 jobs in the past ve and mandatory inclusionary rent-stabilized tenants, tear nority- and women-owned tra c as you give up 25% of years, “housing costs have zoning, to reduce the risk of down the buildings and put businesses. the roadway to an unproduc- actually leveled o .” demolition and to encourage up o ces for tech companies. We also want to see any ap- tive and slow method. When Asking rents for vacant mixed-income development. is is not hypothetical. It is proval of the Tech Hub linked you place stanchions, planters market-rate apartments may In the areas near the already happening. to a rm commitment by the and other obstructions in the have leveled o citywide planned Tech Hub, the Our organizations are not city to lower the commercial roadway to destroy parking recently, but the NYU Furman Greenwich Village Society for willing to accept a trade-o FAR between ird Avenue spots, you create confusion for Center’s annual report on the Historic Preservation, Cooper that creates jobs for some at and Broadway below East drivers trying to stop. When city’s housing found that in Square Committee and other the expense of our neighbors’ 14th Street to provide more you devote almost all the Community District 3, where organizations have sought homes and one that complete- protection for residential tra c police to enforcement the Tech Hub is planned, the reasonable amendments to ly transforms a residential residents who have a target (revenue gathering) rather median asking rent on newly bring the commercial zoning community with many long- on their back. e rezoning than coordination, you get vacant units jumped from in line with the built hous- term tenants into a commer- needs to happen before the gridlock. $1,728 in 2010 to $3,150 in ing stock. Some 90% of the cial district. e tech industry Tech Hub is completed or it JOHN WETHERHOLD 2016, an 82% increase. With buildings in the ird and is also predominantly white will be a double-edged sword Manhattan the surge in asking rents for Fourth avenues corridor (62%) and male (60%), ac- that cuts down a historic such units, tenants have come below East 14th Street have a cording to a 2015 study by the neighborhood. NIMBY? NAH under siege, as speculators built commercial oor-area Center for an Urban Future. STEVE HERRICK “Who’s afraid of winning ush with “predatory equity” ratio of 2.0 or less. However, My organization and many Executive director Amazon? Sadly, quite a few have bought up rent-stabilized current zoning allows for new others can support a Tech Cooper Square Committee
CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to [email protected]. Send op-eds of 500 words or fewer to [email protected]. Please
include the writer’s name, company, address and telephone number. Crain’s reserves the right to edit submissions for clarity. BUCK ENNIS
FEBRUARY 12, 2018 | CRAIN’S NEW YORK BUSINESS | 13
P013_CN_20180212.indd 13 2/8/2018 4:06:52 PM FINANCE | M&A FEVER THE LIST NY AREA’S LARGEST MERGERS & ACQUISITIONS Deals announced in 2017; ranked by value
TARGET/ BUYERS/ DEAL VALUE PRIMARY INDUSTRY DATE DATE While mergers and acquisi- LOCATION LOCATION IN MILLIONS OF TARGET BUSINESS ANNOUNCED CLOSED tions came down in New York Twenty-First Century Fox Inc. Walt Disney Co. $77,071.7 Movies and entertainment 12/13 - in 2017, the drop in deals was 1 Manhattan Burbank, Calif. steeper in the country than C.R. Bard Inc.. Becton, Dickinson and Co. $25,785.2 Health care equipment 4/23 12/29 in the city. Overall, M&A 2 Murray Hill, N.J. Franklin Lakes, N.J. activity remains robust in 1 6 Calpine Corp. Access Industries $17,337.7 Independent power producers 8/17 - New York. 3 Houston Toronto and energy traders 2 7 TRENDS Bradford & Bingley Blackstone Group $14,777.0 ri s and mortgage nance 3/31 3/31 4 United Kingdom Manhattan MERGER PLATEAU Spreads business of Unilever KKR & Co. $8,032.3 Packaged foods and meats 12/15 - Following a surge in value in 2016, United Kingdom Manhattan the total value of M&A activity in 5 2017 returned to the level of 2015. Uber Technologies Inc.3 General Atlantic8 $8,000.0 Application so ware 11/12 1/18 ■ Total value (in billions) San Francisco Manhattan 6 $457 Staples Inc. Sycamore Partners $7,903.7 Specialty stores 6/28 9/12 $424 $422 7 Framingham, Mass. Manhattan $389 3 9 $327 TerraForm Power Inc. Orion US Holdings $6,229.4 Renewable electricity 3/6 10/16 8 Bethesda, Md. Manhattan 10 Toshiba Corp. King Street Capital Management $5,313.3 Industrial conglomerates 11/19 12/5 9 Tokyo, Japan Manhattan West Corp. Apollo Global Management $5,128.3 O ce services and supplies 5/9 10/10 10 Omaha, Neb. Manhattan Equis Energy Pte. Ltd. Global Infrastructure Partners11 $5,000.0 Renewable electricity 10/24 1/19 2013 2014 2015 2016 2017 11 Singapore Manhattan 4 Aon Blackstone Group $4,800.0 Internet so ware and services 2/9 5/1 RAW DEALS United Kingdom Manhattan 12 After a steep drop from 2015 to 5 Foreclosed real estate assets Cerberus Capital Management $4,745.0 Real estate operating companies 11/29 - 2016, the total number of M&A Spain Manhattan deals including NYC companies 13 dropped an additional 3% in 2017. 12 Kindred Healthcare Inc. Welsh, Carson, Anderson & Stowe $4,399.6 Health care facilities 12/19 - ■ Total Louisville, Ky. Manhattan 14 4,403 4,462 13 USI Insurance Services KKR & Co. $4,300.0 Insurance brokers 3/17 5/16 4,068 3,955 15 Valhalla, N.Y. Manhattan 3,669 14 Paysafe Group Ltd. Blackstone Group $4,285.8 Data processing and 7/21 12/20 16 Douglas, Isle of Man Manhattan outsourced services 15 Sponda Blackstone Group $4,049.0 Real estate operating companies 6/5 8/4 17 Helsinki, Finland Manhattan 16 China Internet Plus Group Coatue Management $4,000.0 Internet so ware and services 10/13 10/19 18 Beijing Manhattan WebMD Health Corp. Total Attorneys $3,751.3 Internet so ware and services 7/24 9/14 19 Manhattan Chicago 2013 2014 2015 2016 2017 Fidelis Care Centene Corp. $3,750.0 Life and health insurance 9/12 - 20 Rego Park, N.Y. St. Louis, Mo. DROP IN the total Portfolio of U.S. rst lien residential DLJ Mortgage Capital Inc. $3,396.0 ri s and mortgage nance 3/8 3/8 number of M&A deals in which an mortgage loans Manhattan -2.8% 21 NYC-based company was the buyer United States or target in 2017; nationwide, the Bureau van Dijk Electronic Publishing Moody’s Analytics Inc. $3,292.8 Publishing 5/15 8/10 drop was 9.1% 22 Amsterdam Manhattan 17 Q-Park KKR & Co. $3,287.3 Environmental and facilities services 5/17 - INDUSTRY LEADERS 23 Maastricht, Netherlands Manhattan As per usual, Crain’s top 30 was punctuated by merger activity in the Fortress Investment Group SoftBank Group Corp. $3,265.5 Asset management and custody banks 2/14 12/27 energy, software, nance and real 24 Manhattan Tokyo estate sectors. ■ Number of deals Time Inc. Meredith Corp. $3,137.4 Publishing 11/26 - Energy Manhattan Des Moines, Iowa 4 25 Software 4 Tec CTL Inc. Milost Global Inc. $3,000.0 Integrated oil and gas 6/9 - Finance 3 26 Manhattan Manhattan Real estate 3 18 3 WeWork Management SoftBank Group Corp. $3,000.0 Real estate operating companies 8/24 - Health care 2 26 Manhattan Tokyo Insurance 2 CBS Radio Inc. Entercom Communications Corp. $2,836.9 Broadcasting 2/2 11/17 Publishing 2 28 Manhattan Bala Cynwyd, Pa. Broadcasting 1 Kate Spade & Co. Tapestry Inc. $2,776.4 Apparel, accessories and luxury goods 5/7 7/10 Clothing 1 29 Manhattan Manhattan Data processing & outsourced services 1 Oldcastle Distribution Inc. Beacon Roo ng Supply Inc. $2,625.0 Trading companies and distributors 8/24 1/2 Entertainment 1 30 East Rutherford, N.J. Herndon, Va. Environmental & facilities services 1 Food New York area includes New York City and Nassau, Suffolk and Westchester counties in New York, and Bergen, Essex, Hudson and Union counties in New Jersey. List includes announced 1 transactions for which terms were disclosed and that were not canceled and in which a buyer or target was based in the New York area. Includes private-equity deals. Data on announced Industrial conglomerates 1 deals are as of Jan. 31, 2018. In case of a tie in value, deals are listed in alphabetical order by target. 1-95.08%. 2-104,000 buy-to-let mortgages. 3-Unknown minority stake. 4-Benefits Of ce services & supplies administration and human resources business process outsourcing platform. 5-80%. Includes necessary assets and employees to manage the business. Additional parties for the 1 corresponding footnotes listed above: 6-Canada Pension Plan Investment Board; Energy Capital Partners. 7-Prudential. 8-Sequoia Capital; SoftBank Group Corp.; TPG Capital; Tencent Specialty stores Holdings Ltd.; Dragoneer Investment Group. 9-Brookfield Renewable Partners. 10-Effissimo Capital Management Pte Ltd. 11-Public Sector Pension Investment Board; CIC Capital Corp. 1 12-TPG Capital; Humana Inc. 13-Caisse de dépôt et placement du Québec; individual investors. 14-CVC Capital Partners Ltd. 15-Andersson Real Estate Investment Management. 16-IDG Trading companies and distribution Capital Partners; Priceline Group Inc.; GIC Pte. Ltd.; Canada Pension Plan Investment Board; Mubadala Investment Co.; Tiger Global Management; Sequoia Capital China; TrustBridge 1 Partners; China Development Bank Capital Corp.; Tencent Holdings Ltd. 17-EDF Invest. 18-SoftBank Investment Advisers. Source: S&P Global, with additional research by Gerald Schifman. Source: S&P Global
14 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 12, 2018
P014_CN_20180212.indd 14 2/8/18 6:17 PM Bulls on a shopping spree New York’s private-equity rms are leading the M&A charge BY AARON ELSTEIN
select group of Wall Street executives is buying up assets at a pace that has rarely been seen before. e wallets of these big-game hunters—private-equity executives— collectively carry more than $1 trillion in cash, which they call dry powder, plus seemingly endless lines of Acredit. Almost no corporate target is outside their crosshairs. Last year, helped by a relatively strong dollar and low interest rates, New York’s PE executives spent like a bunch of giddy tourists. ey were buyers in 15 of the 20 largest deals involving city-based ROCK STAR: With $55 billion in returns and $108 billion in new investor companies last year, according to Crain’s research. In all, they had a cash in 2017, Blackstone co-founder hand in 4,191 deals worldwide, worth a total of $347 billion. Schwarzman could become the rst More big deals are on the way because the rms are rolling in CEO of a publicly traded company cash. And the recent market volatility might be more good news to earn $1 billion in a single year. for them, as it could prompt weaker companies to sell at a discount. Last year Leon Black’s Apollo Global Management raised a record $24.6 billion private-equity fund in just six months, less than half the time it took Blackstone Group to raise a then-record $6.5 bil- lion in 2002. North American private-equity rms raised a record $272 billion in new cash last year, according to research rm Preqin. e king of the heap is undoubtedly Blackstone, long one of Wall Street’s most successful wheelers and dealers. e rm spent $50 billion on and then sell—was called a bootstrap until it was rebranded as a leveraged buy- acquisitions last year, returned $55 billion from selling o previously acquired out in the 1980s. companies and pulled in $108 billion in new investor cash. To counter their pop-culture image as hatchet men who buy, strip and ip com- “I can’t even say that number with a straight face,” Blackstone President Tony panies, Schwarzman helped organize the industry’s rst trade group just before James said of the infusion of funds the nancial crisis—what became the during a conference call this month. Private Equity Growth Capital Council, “ e scale of our operations today “THE SCALE OF OUR OPERATIONS now the American Investment Council. is something I couldn’t have imagined Whatever it’s called, the PE eld has when I started this business with my IS SOMETHING I COULDN’T HAVE doubled in size during the past decade partner, Pete Peterson, 32 years ago,” IMAGINED WHEN I STARTED THIS and today counts 5,000 rms con- added Blackstone co-founder Stephen trolling more than $2.8 trillion in assets, Schwarzman who, based on those 2017 BUSINESS 32 YEARS AGO” according to Preqin. Private equity is returns, could become the rst CEO now where Wall Street’s biggest fortunes of a publicly traded company to earn are made. Forbes estimated that there $1 billion in single year. were 25 private-equity billionaires in 2016. Schwarzman’s net worth is pegged at Schwarzman and his fellow M&A titans didn’t invent private equity, but they $11.8 billion, KKR’s Henry Kravis’ at $5 billion. PE executives’ vast earnings are were early adopters. e classic playbook—buy struggling companies with bor- taxed at the advantageous capital-gains rate rather than as ordinary income, a
rowed money, get rid of all but their most essential assets, boost performance lucrative loophole that survived the new tax changes. BUCK ENNIS, BLOOMBERG
FEBRUARY 12, 2018 | CRAIN’S NEW YORK BUSINESS | 15
P015_P016_CN_20180212.indd 15 2/8/18 4:41 PM P015_P016_CN_20180212.indd 16 FINANCE ISTOCK 16 |
CRAIN’S NEWYORKBUSINESS their futuretheir commitments. what have they to pay current retirees and sizeof the returnsthe narrow will o the gapen-wide between of have which invested inprivate equity inhopes is amajorfact point selling to pension funds, many from investing instocks, according to Preqin. at pension plans, returns the twice plans those earned has generated annualized returns of 8.5%for public investors. private past the decade During equity buying sprees have produced strong results for their rock-bottom interest rates, private-equity rms’ Future gains nancial crisis. mercial out banks of PE investing wake inthe of the helped clear competitive the eld by nudging com- ton came Obama when administration regulators greatestthe gi the evergotrm from Washing- is aleading Democratic contributor. Arguably raiser for President Donald Trump, and James
anks to fewer big competitors and years of Schwarzman is aprominent and adviser fund- and hammeroutareuni cation. torekindletheirmergertalks CBS andViacom that happens, and even ifitdoesn’t, look for to Thursday NightFootball for $600 million.If BTIG reckons Amazonsoonwillacquirerights intobroadcastingnetworks. Amazon morph likely tomerge, especiallyasFacebook and cable channelisthenext-bestthing. in theYankees. Perhaps acquiringtheteam’s ago hisfather, Charles, fought tobuyastake channels for morethanayear, but20years tosellthosecable Dolan hasbeentrying Yes andconsolidateitwithhisMSGNetworks. BTIG, isfor KnicksownerJamesDolantobuy resurgence. pill toswallow giventheYankees’ expected networks, suchasYes—a potentiallybitter casting power by sellingsomeregionalsports It could, for instance, dimitsbaseballbroad- said, ithasotheroptionstoplacatetheFeds. analyst RichardGreen eld atBTIGResearch franchises. that don’t t well withDisney’s blockbuster light, of astudiothatfocuses onthesort lms say, Comcast.ItalsocouldshedFox Search- on theFox merger, Disney couldsellHuluto, potential entanglements:Make moredeals. cable andsatelliteconsumers. would have toomuchpower toraiserateson which hasarguedthatthecombinedcompany has beenheldupby theJusticeDepartment, posed mergerbetween AT&T Warner andTime Donald Trump’s speeddial.Afterall, thepro- MurdochbeingonPresident structed—despite ment mightnotapprove thedealascon- account for 40%oftotalbox-of ce receipts. channels.Anditwill eral otherregionalsports vice Huluaswell astheYes andsev- Network colossus thatincludesstakes instreamingser- is completed, Disney willcontrolaHollywood on No. 1 his mediaempiretoDisney for $77 billion— Murdoch’sthan Rupert decisiontosellmostof NO 2017 DEALWASMORESURPRISING ALL EARS |
M&A FEVER M&A Meanwhile, moremedia companiesare Another intriguingprospect, accordingto If Disney wouldratherretainthoseassets, To authoritiestosignoff antitrust persuade But theremay beaway for Disney toavoid But it’s stillabig“if,” asthefederal govern- Crain’s list(page14).Ifthemerger
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FEBRUARY 12,2018 — A.E. in promising Silicon Valley ventures. year Last KKR strip, ip” many textbook, rms are looking to invest invests in. any other currently fund assets the than stocks, bonds, real estate or 7.75% annually over time, better that its PE port folio return will ment Fund, for example, predicts New York State Common Retire- hopestheir on private equity. e tutional investors continue to pin 20% of pro the ts. Still, many insti- 2%of collect assetsand the ically mance PE because managers typ- he y fees for that underperfor- byset funds, have which the paid at return is below 13% target the have returned 9.9%since 1997. private-equity investments, which tem, for instance, has $11billion in Although plenty rely of still PE deals on “buy, the New York City’s pension sys- RETAIL BUYS EVERYONE KNOWSTHAT RETAILERS is nowjust$1.1 billion. is down42%, andJ.C.Penney’s marketvalue stock pricehassunkby 65%, RalphLauren’s tosiftthrough.Macy’sage ofailingretailers standards, butthe hasnoshort- certainly rm agement, Sycamore issmallby private-equity investment gradetoadeep-junkB+. Standard &Poor’s cutfour notches:from new debtwrecked Staples’creditrating, which ofleveraged buyouts.Butthe fare intheworld lion incashandborrowed therest—standard might seem, asSycamoreputupjust$1.6 bil- the $6.9 billion pricewasn’t asformidable asit deals onrecord, Plus, accordingtoBloomberg. revenue, makingitoneofthecheapestbigPE it, paying apriceequalto0.35%ofStaples’ “iconic brand,” hedidn’t shelloutmuchfor a futurewithoutallthatbrickandmortar. supply saleshappenonline, soperhapsithas at least2013.Butabout60%ofitsof ce- since quarter same-store salesdecliningevery be yetanotherretailerinadeathspiral, with the retailer led for bankruptcy. Stores’ brandande-commercebusinessafter Last yearSycamoreboughtTheLimited Weitzman. NineWestshoe sellers andStuart Delray Farms, hassincemadebigbets on chain a co-founder ofChicago-basedgrocery return, accordingtoBloombergNews. Kaluzny, lion, aninvestment thatnettedasix-fold the ailingTalbots chainin2012for $193 mil- declined tobeinterviewed, Sycamoreacquired native New Yorker whoshunsthepressand appear tobeawiltingasset? 2010. Sowhy isSycamorebuyingwhatwould has closed25%ofitsstoresinthecitysince according totheCenterfor anUrbanFuture, paid $6.9 billionfor Staples(No. 7), which, steppedinand SycamorePartners rm Whole Foods racedintoAmazon’s arms. Reade closed43storesinthecitylastyear. decade ago, isdowntoitslastthree.Duane Radio Shack, whichhad116storesherea are beingdoneinby theriseofe-commerce. With morethan$3.5 billionunderman- Although Kaluzny describedStaplesasan Staples, the rm’s biggestbet, looksto Launched in2011by StefanKaluzny, a Amid lastyear’s carnage, private-equity COOKING COOKING HOME of thosedeals $347B NUMBER OF TOTAL COMBINED 4,191 based private-equity rm that involved York– aNew transactions worldwide — A.E.
M&A M&A “ had abullish ey point of view,” he said. London—a tting moniker, inZiegler’s estimation. value value ebuyer was Pamplona Capital Management of MERGER RX Kaufman Hall. change,” said Anu Singh, managing directorat improving employee satisfactionistelling. lowering employer healthcarecostswhile scant, butthe new company’s statedgoalof Hathaway andJPMorgan.Detailshave been the jointventurebetween Amazon, Berkshire their chronicdiseasesatCVSclinics. healthcostsbyAetna members’ managing an insurer, tolower offering theopportunity retailer andpharmacy-bene t managerwith CVS’ dealtobuyAetnafor $69 billionlinksthe (No. 20). stock Care ofQueensfor $3.75 billionincashand September toacquirenonpro t insurerFidelis managed-care plansnationwide, agreedin tene Corp., thelargestoperatorofMedicaid into new markets.St. Louis–basedCen- Wall Street Journal. Forlenza, BectonDickinson’s CEO, toldThe by hospitalconsolidation, vated inpart Vincent closed inDecember. Thecompany was moti- Thedeal(No. broaden itsproductportfolio. 2) manufacturer C.R.Bardfor $25.8 billionto it plannedtoacquirefellow medical-supply Franklin Lakes, N.J., announcedinAprilthat feelpliers threatened. BectonDickinsonof Hospital. active parentofSouthNassauCommunities Health System’s tobecome the arrangement were inNew York state, including MountSinai & AssociatesofSkokie, Ill.Sixofthosedeals the previous year, accordingtoKaufman, Hall transactions nationwide, a13%increaseover gaining alegup.” toseeotherfolks potentially when they start tan. “People getthreatenedandconcerned sulting COPEHealthSolutionsofManhat- rm consolidation,” saidAllenMiller, CEOofcon- ers, andpharmacies. medicalsuppliers bug lastyear, includinghospitals, healthinsur- caughttheconsolidation health careindustry PRACTICALLY EVERY SECTOR “They’re withthepaceof frustrated buzzsurrounds Perhaps themostindustry Some acquisitionshave bridgedsectors. alsomadedealslastyeartoexpand Buyers But ashospitalsgainmarket clout, sup- In thehospitalsector, therewere 115 It’s nocoincidence.“Consolidationbreeds for it.”for now,” said. “We Ziegler can really go business inafast-growing eld. double its sta to 150and pursue new has given resources the Logicworks to 15 potential suitors. ownere new in late 2016a er elding bids from a private-equity forrm $135million his company acquired to be elected by of Logicworks vider Manhattan, said tive of cloud-computing-services pro- scene. Kenneth Ziegler, chief execu- in New York’s own burgeoning tech $8 billion into Uber. and TPGjoined aconsortium that put lion inLy Atlantic General , while joined a group that invested $1.5 bil- “Nothing is weighing us down e rms are big also investors — JONATHAN LAMANTIA of the ■ 2/8/18 4:41 PM
P017_P019_CN_20180212.indd 17 Caribbean toHarlem. cash tobringatasteofthe her chefhusbandenough apartment gave Youngapartment and Selling theirWilliamsburg OUT-OF-POCKET EXPENSE:
BUCK ENNIS RESTAURANTS
| UPTOWN EATS
AT THE A SEAT SEAT A How agroup offemaleentrepreneurs TABLE took advantageoflowrents and community support tolauncha community support Harlem BY CARAEISENPRESS restaurant renaissance
O chefs continue to dominate landscape. culinary the neurs. city, in the Elsewhere women own just 1 in 10 top restaurants, and male a hospitable business environment and community of like-minded entrepre- owned by women, mainly women of color from neighborhood, the found who than Pittsburgh. But spots—like these athird of Harlem’s top eateries—are hardly unusual here, in a community especially with 330,000 residents—more food. comfort Southern there’s then for Sylvia’s, And its famous asteakhouse. as reopened just Cecil e for pub fare. Social Corner and for Lido Italian food, Caribbean-inspired the city’sthe small-business ecosystem. Future, expansion the sees which of women-owned eateries as away to bolster soared by 2011 and 45%between 2016,according to Center the for an Urban amountthe of women-owned businesses accommodation and food-services total the number40% while of restaurants increased by just 12%.In New York restaurants outpaced overall restaurant growth from 2007to 2012,jumping by grow a business. at future is here: Nationally number the of women-owned a glimpse must of they barriers the overcome not only to open but to also like looks with women industry the at helm. the And stories their provide Top Chef winner Marcus Samuelsson, owner of Rooster. Red tourists, acommunitygry that supports businesses and local by boosterism to a wealthier population moving in, a rich cultural that history attracts hun- great businesses and committed to community.” the of way their assistance to seek to grow. ey’re deliberate, on creating focused Harlem Business Small Development Center. women have “ ese gone out “ ey took risk,” the “ ey Simmons, said Kaaryn director of Columbia- the ofA collection many so thriving restaurants in a single neighborhood is By Harlem’s leading boom, the female restaurateurs are apreview of what Restaurants have booming inHarlem been for or past the decade so, thanks wine and cuisine. Nearby, there’s for Shack cuisine. LoLo’s and Seafood wine 119th Street, West and Boulevard Douglass on Frederick down, blocks Twenty salad. Caesar jerk chicken including fare, Jamaican and American a mash-up presents menu oflem British, café Avenue Har n Edgecombe e Edge West and Street, 139th Vinateria specializes in Italian and Spanish Spanish and Italian in specializes Vinateria FEBRUARY 12,2018 |
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17 2/8/18 5:56 PM SUBJECTRESTAURANTS | CATEGORY | UPTOWN EATS
But the economic conditions Just as the inspiration came that once greeted the Harlem from within, so did the funding. crowd have tightened, suggest- Young and her husband were ing that opportunities for female able to buy a brownstone and entrepreneurs are closing. sign a lease for the restaurant on the proceeds of their Brooklyn Well-trod path home sale. But a network in the In 1901 Lillian Harris Dean, community was crucial for pro- known as Pig Foot Mary, be- viding the mentorship and aca- came Harlem’s rst female cu- demic support that have turned linary entrepreneur when she LoLo’s into a mainstay. sold boiled pigs’ feet to fellow Young is in her second year at displaced black Southerners THE TIPPING POINT: The the Columbia Community Busi- Masters sisters knew if out of a baby carriage on 135th they built a restaurant ness Program, which has helped Street. Enough Mississippians they wanted to eat in, her focus on building a lean but were hungering for the snack others would follow. stable enterprise and maximiz- that she was able to buy an ing growth, she said. apartment building in 1917. Other forms of mentorship Fi y years later, Sylvia are less formal. “I don’t feel the Woods, who had worked as a sort of one-upmanship compe- waitress in the neighborhood, opened Sylvia’s. Her savings, their parents and two private investors com- tition that you feel in other neighborhoods,” said ribs and greens rst drew locals but soon attracted pleted the nancing. It took a year from lease sign- Yvette Leeper-Bueno, owner of Vinateria and vice downtowners and tourists who wanted to soak up ing to opening day, but the landlord allowed them to president of the Frederick Douglass Boulevard Al- some of Harlem’s renowned artistic energy. “As a defer the rst year’s rent payments. liance. “I know the names and have the numbers of market, Harlem has been driven by food,” said Nikoa At rst e Edge sold only coee and pastries; so many businesses in the neighborhood. I can call Evans-Hendrick, executive director of Harlem Park brunch and dinner came later—once the gas was in- people on the phone and ask them ‘So who do you to Park, a business membership organization to stalled. Even with the slow rollout, they made mon- use for linen?’ and so on.” which many of the restaurants belong. ey from the get-go. “ e landscape is ripe for new Adding to that sense of community is that many By 2005, a er decades of crime and poverty had businesses to come in and do well,” said Justine Mas- of the women are from the neighborhood. “Since I besieged Harlem, the neighborhood was again hun- ters. “It’s dierent from trying to do this downtown, lived here, I felt like I was opening in a neighbor- gering for some good eats. With $300,000 she had where the overhead is so high. is neighborhood hood that wanted us to succeed,” said Leeper-Bueno. been saving in her mattress, lifelong Harlem resident needs amenities.” She signed “one of the longer leases” for Vinateria’s Melba Wilson opened Melba’s on West 114th Street, Bringing those amenities was an intentional 1,300-square-foot corner space, she said—which has which she said was a notorious block for drugs. process. By the end of the 2000s, business and com- given her the ability to pace her growth. “ ey call me the godmama,” she said. “It takes munity leaders had come together to ensure that Wilson said she has always had two goals at Mel- someone to start.” residents would bene t from redevelopment. e ba’s: to cook great food and to serve the people living From the beginning, Wilson’s surprised accoun- Columbia Community Business Program, Harlem around her. tant would call each quarter and say, “You’re looking Park to Park and the Frederick Douglass Boulevard “Part of it was to show people—kids from my really good.” e popularity transformed Melba’s Alliance had formed to provide education and ex- neighborhood—that you can come from Harlem, into a pro table business by year two, and this year pertise to new businesses, some in an academic set- from the inner city, and own your own business and she was able to expand in order to seat more than ting. With their assistance, entrepreneurs without employ kids from your community,” she said. “We 100 diners. Rent was originally $2,500 a month but previous hospitality experience were able to think have always kept prices aordable for the neighbor- has gone up considerably, Wilson said. through their plans thoroughly. Still, loans and in- hood.” Dozens of locals work at the restaurants. Melba’s sells fried chicken and wa es at aord- vestment weren’t available to most—a problem com- But the economic accessibility for new businesses able prices. And Wilson taps in to the demand of a mon to new business owners. Women have a par- may not last. “ e rents are crazy,” said Colum- neighborhood underserved by eateries. “ ere are ticularly hard time accessing cash. In New York in bia-Harlem’s Simmons. “We don’t have as many just not as many restaurants per square foot in Har- 2014, female entrepreneurs received just 12% of the clients saying, ‘I want to open a restaurant in Har- lem as in other parts of the city,” said Herb Karlitz, total dollars lent. lem.’ ey were priced out two to three years ago.” an event marketer who organizes the annual Harlem Wilson and others relied on their savings or eq- It’s one thing to take a risk on a new business; it’s an- EatUp festival. For rst-time restaurateurs, uptown uity from their homes to open their restaurants. It other thing to jump in for $10,000 in monthly rent was a place where “they think, Maybe I stand a ght- wasn’t until about a decade a er Wilson opened when you simply can’t sell that many wa es. ing chance.” Melba’s that she received a loan to expand the e average asking rent in the busy 125th Street Sisters Juliet and Justine Masters, a chef and a real restaurant. e task was surprisingly dicult. “ e corridor rose to $140 per square foot in 2015 before estate broker, respectively, had a similar thought in bank I was dealing with at the time wanted me to put sinking to $123 last fall, according to the Real Estate 2014. If they could build a place where they want- in my lease as collateral,” she said. “I was bringing in Board of New York. at would amount to 20% of ed to eat themselves, others would come too. ree $1 million on a yearly basis. at was insane.” She sales for a 1,600-square-foot restaurant doing $1 mil- years ago they decided to open e Edge Harlem. It borrowed money from the Upper Manhattan Em- lion a year. On less-tracked streets, rents are lower; sits on a residential block far north of the strips on powerment Zone and Carver Federal Savings Bank, a 1,000-square-foot corner spot on Adam Clayton Lenox Avenue and Frederick Douglass Boulevard, a community bank, instead. Powell Jr. Boulevard and West 118th Street is listed where several restaurants had followed Melba’s path Leticia Skai Young, who grew up in Harlem, for $57 per square foot by John McGuinness, an agent to success. moved back to the neighborhood a er selling her at Compass. “ e building we’re located in has 90 apartments,” home in Williamsburg. She had worked her way “Rents have doubled,” he said, “but they’re still said Juliet Masters. “Even if we just feed the peo- up in hospitality management to opening restau- half of anything below 96th Street.” ple in this building, we’ll do OK,” she recalled their rants for a big organization. And she had married Today’s rents might deter newcomers, but the rst thinking at the time. “It was this intuitive thing: If we an executive chef with experience at Union Square’s wave of Harlem’s female restaurateurs sometimes put something here that is good quality, we’ll get the e Coee Shop. So when she followed her gut and found enough early success to consider branching residents.” decided to undertake a passion project, which be- out. Anahi Angelone opened the bar Corner Social Many more than 90 households now go to e came LoLo’s Seafood Shack, she and her husband, in 2012 a er managing Irish bars downtown for a de- Edge. Lines at brunch can wind around the block. Raymond Mohan, were ready. cade. Two years later Corner Social was so successful Diners come from all over the city and beyond. ey took inspiration for the food and the de- that she opened a restaurant, Angel of Harlem. Both cor from both New England and the Caribbean are pro table. In the summer she and her partners, Community support and named the spot in tribute to the locally owned, including former Time Warner CEO Richard Par- To build the 1,300-square-foot reclaimed wood– locally operated seaside shacks in St. Martin. ey sons, took over e Cecil Steakhouse as well as Min- lined restaurant, the Masters sisters rst raised opened in winter 2014. “I really nd that it’s a way to ton’s Playhouse, the adjoining restaurant and venue $100,000 before realizing they’d need at least double express ourselves creatively,” Young said of running that had closed in 2016. Angelone ascribes her drive that, still less than the $500,000 most experts say it her 1,000-square-foot eatery, which includes a back- to the neighborhood itself. takes to start a café downtown. A $25,000 loan from yard beach shack. Sales grew 50% the second year “ e reason I do what I do is Harlem,” she said.
BUCK ENNIS Chase bought half the equipment; money from their and about 35% in the third. “I love this community.” ■
18 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 12, 2018
P017_P019_CN_20180212.indd 18 2/8/18 6:07 PM THE NEXT HARLEM FOOD BINGE WILL BE WHOLESALE
IN JULY NICHOLAS LARSEN and Petrushka Bazin Larsen beg for participants to join the Harlem Harvest Festival, but opened Sugar Hill Creamery in a 500-square-foot shop on now she has to turn folks away. Lenox Avenue. Lines for their ice cream ran down the block To ensure that the local entrepreneurs pitching products until they sold out, every day for two weeks. The husband- would be sophisticated enough to sell to national chains, and-wife team knew that their gamble—they used $300,000 Evans-Hendricks launched the Harlem Local Vendor Partner from their own funds and a loan from the Upper Manhattan Program in 2015, in collaboration with the Whole Foods loca- Empowerment Zone—would pay off. But while other ice- tion, which was then being built . The vendor program lasts six cream companies have opened additional stores or added months and pushes entrepreneurs to polish their packaging, trucks quickly, the Larsens plan to expand by selling pints production and marketing strategies in order to sign on with at wholesale for $5.15 (about $9 at retail) in four of their vendors quickly. Columbia University came on as a partner popular avors. in 2016 and has been providing a ve-week business boot “People think it’s cute, like a mom-and-pop,” said Bazin camp to the vendors. In December the most recent cohort Larsen of their store. “But, no, this is the beginning. Our vision was joined by other Harlem businesses at a fair where buyers is more expansive.” from Whole Foods, Bed Bath & Beyond and Macy’s met the Their wholesale venture comes at what looks to be the end founders of the up-and-coming businesses. The program also of an era for new Harlem eateries, especially those opened by markets its participants’ products on a website and a social rst-time business owners. From the late-2000s until Whole channel called Shop Harlem Made. Foods opened on West 125th Street in July, the area had Under the program’s guidance, limeade company Lima- both low rents and an enormous population underserved by tion lowered its sugar content, rebranding as a health drink retailers. rather than a Caribbean-inspired elixir. Essie Spice, a Now the same entrepreneurs who might once four-year-old spice-mix and sauce company founded in have opted to sell in retail spaces are wholesaling Harlem but now based in New Jersey, sells at several products. Their startup costs are lower, since they Whole Foods and at ShopRite locations; sales reached often launch out of their home and then move to $40,000 last year. This year founder Essie Bartels says shared commercial kitchens or local accelerators like she’ll expand by introducing grains from Africa and HBK Incubates, instead of investing $500,000 to out t attending the Fancy Food Show, the big annual fair that a storefront. In 2009 business coalition connect food makers with buyers. Harlem Park to Park had nine members, all So far 20 of the 60 vendors who went of which operated out of storefronts. through the program are on the shelves at Today 16% of its 120 members are sell- Whole Foods; some have gotten orders from ing products wholesale, according to Nikoa other stores in the city or other regions. And Evans-Hendricks, executive director. Just a few their products are on the menu at 50 met- years ago, Evans-Hendricks said she had to ro-area restaurants. — C.E.
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FEBRUARY 12, 2018 | CRAIN’S NEW YORK BUSINESS | 19
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P020_P021_CN_20180212.indd 20
BUCK ENNIS 20 SMALL BUSINESS |
S CRAIN’S NEWYORKBUSINESS HIGH GLASS: ACHIEVEMENT SINGULAR the world. around small vintners wines from imports one-woman enterprise $1 million mark from many the microentrepreneurs but from seven afar cry gures. isin 2015,which 71%more than national the average for Manhattan-based nonemployer rms was $80,830 are exception the still to rule. the eaverage revenue Census Bureau data. nue in 2015—a 33% increase from 2011, according to $1 million and $2.49million inreve- between Some 35,584earned rise. And number the of is them on the nerships, most are operations. solo term for such companies—are part- businesses—the U.S. government’s themselves. without any employees other than grew revenues beyond $1million businesses, but have all one thing incommon: ey Amazon. on goods sporting other and gear boxing market Angie, wife, his and Raja Kamesh Colin coolers. specialty and What separates Cu e and others break who the But despite that growth rate, such robust earnings Although some nonemployer Newese York City entrepreneurs varied run venues. Ryley Lyon sells 3-D printing pens pens printing 3-D Lyonvenues. Ryley sells other and events sporting at hotels, services provides baby-sitting Charlupski Rachel globe. of the corners distant other and rica elena Cu Af- South from wines e imports Cuffe’s
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FEBRUARY 12,2018 THE SECRETISSTRETCHINGULTRATHIN CONTRACTORS ANDFREELANCERS BUDGETS AUTOMATING ANDHIRING expensive as Manhattan and sometimes evenmore.” studies self-employed the economy. “Brooklyn is as Virginia-based provider of back-o that ce services dent and chief executive o Partners,cer at MBO a businesses. “It’s expensive,” Zaino, said Gene presi- tothem work—is beyond budget the of most micro- where cost the of hiring talent—and nding aplace for competitive advantage New inthe York City market, hiring contractors and freelancers. at’s apowerful budgetsultralean by outsourcing, automating and a lot,” he said. freelanceies the economy. “People are to willing pay of Emergent Research inLafayette, stud- which Calif., from clients, deep-pocketed said Steve King, founder services rms, secret is the commanding rates high adding payroll. In some nonemployer professional one person or team of can partners achieve without don’twho is ways the they’ve found to extend what But inmany businesses, secretis the stretching BY OUTSOURCING,
BY ELAINEPOFELDT the owner the businesses have just one employee: A growing number of $1million ambassadors welcome holiday the cash. doesn’t ayear-round need sta sales , and brand the to 50%of inNovember sales and December—Cu e en that her business is heavily 40% seasonal—with at events such as holiday tastings at retail stores. Giv- cionados or freelance sommeliers—to her wines sell freelance “brand ambassadors”—typically wine a - over world. the at anonpro t, made arrangements to import wines cards, Cu workinge, had 42, who been in marketing South Africa. black-owned root take wineries inpost- Apartheid a visit to Soweto the Wine Festival inspired her to help herstarted Heritagerm, Brands, Link in2005,a er grown her business by relying on contractors. She ford University and Harvard Business School, has One big factor was relying on army asmall of Tapping savings personal and zero-interest credit Cu e, aBrooklyn resident and graduate of Stan- Heritage now wines from sells all mark and has continued to grow. prise broke $1million the revenue into U.S. the market,” Cu e said. to plan and plot to bring wines these atSouth Africa time. the of few black-owned the in wineries fromSisters Seven the winery, one By 2010her one-woman enter- “Over next the two years, I began 2/8/18 11:18 AM FAB FIVE Cu e also hires her AVERAGE REVENUE for sister, an independent nonemployer rms in tax consultant, to advise each borough her on regulatory issues and a freelance design- er from Minneapolis to $29,598 create the labels for her BRONX bottles. Her approach is working. Stores such as Gnarly Vines in Brook- $43,953 lyn and Whole Foods BROOKLYN on the Upper West Side now carry her brands— which include Casa $80,830 Valduga and Don Gue- MANHATTAN rino. But retail is still Cu e’s smallest distri- bution channel. She has found a niche catering $38,134 to institutions such as QUEENS the Brooks Atkinson, Gershwin, Nederland- er and Lunt-Fontanne SITTING PRETTY: Lyon quit $45,447 theaters, as well as college as his one-man STATEN ISLAND landmarks such as the business took off. Last year Harvard Club and the it grossed $3.5 million. World Bank. When her newest label, Kindred, launches this year, it will be the house wine of the National Museum of African American History and Culture in Washington, D.C. “Where we have been successful is in not trying to go head-to-head with Mondavi and Gallo,” Cu e said. Charlupski has taken a similar approach to growing e Babysitting Co., also a pro table non- employer rm that breaks $1 million in revenue. She employs 2,500 carefully screened baby sitters as contractors at her one-woman business, founded in 2009. In addition to working for private clients, Char- MAKING IT HERE lupski’s sitters mind children at area hotels such as e Peninsula, e St. Regis New York and more AVERAGE REVENUE than one Ritz-Carlton. e 33-year-old has also OF NEW YORK–BASED tapped into the sports scene, taking charge of play- NONEMPLOYER ers’ and coaches’ kids during a game. $49,977 ors, they decided to o er it in seven bright hues they “We have mastered con dentiality and getting a BUSINESSES, ABOUT 6% MORE THAN THE thought would appeal to women, plus a men’s line. really high caliber of sitters,” Charlupski said. “ at NATIONWIDE AVERAGE, $47,211. OWNERS Like Lyon, they used paid advertising within Am- translates to a high-caliber clientele.” HERE SAY THEY BENEFIT FROM THE LOCAL azon and on Google and Facebook. “ ose things ECOSYSTEM, INCLUDING AN AMPLE helped us reach multiple customers,” Raja said. Tapping technology SUPPLY OF QUALITY FREELANCERS. e Rajas were on to something. e couple, who Some of the city’s high-revenue nonemployer rms are both in their early 30s, were able to grow what use low-cost technology to expand what a one-person was once a side business by outsourcing orders to business can accomplish while keeping overhead to between 12% and 15% of the retail price as a referral Ful llment by Amazon. eir company’s revenue a minimum. Take Lyon. e 28-year old runs Ditec fee, as well as a separate ful llment fee, but the latter grew to $1 million in 2016, when it was just the two Solutions, a Brooklyn-based Amazon store that he charge is not much higher than it would cost him in of them. said grossed $3.5 million last year—enough to per- postage. e Rajas also took advantage of New York City’s suade him to drop out of the University of Califor- “ ere’s the added bene t of not having to man- entrepreneurial ecosystem. nia, Santa Cruz. Advertising within Amazon and on age a warehouse, which is a huge headache,” he said. “ ere is a lot of support for freelancers in New Facebook has allowed Lyon to reach a vast audience “You can outsource almost everything today,” York City—co-working spaces, meet-ups, a commu- on his lean budget. He stretches what he can get done said attorney Glenn Stein, who advises startups in nity of people doing similar things,” said MBO Part- by using programs such as TaxJar, which automatical- New York and New Jersey at Chiesa Shahinian & ners’ Zaino. “One of the issues of being freelance is ly reports and les sales taxes, and Unify for Quick- Giantomasi. you are on your own. When you can socialize with Books, which manages bookkeeping tasks related to Lyon’s business is growing so fast that he borrowed people who are doing similar things as you and you e-commerce with minimal human oversight. $105,000 from a lending program at Amazon at 6.9% can physically meet with them and collaborate, that’s Lyon started the business in 2015, relocating it interest to keep pace with orders during the pre- a good feeling. Being in a big city is wonderful for from California to the Bond Collective co-work- holiday season. Strong sales justi ed the decision. “I t h at .” ing space in Brooklyn last May. His business sells paid it all o at the end of December,” he said. A er attending meet-ups when he su ered “brain 3-D printing pens and other merchandise, such as Some of the city’s million-dollar nonemployer freeze” about how to grow the business, Raja said, high-performance coolers for outdoorsmen, and businesses eventually pick up so much momentum, “I’ll refresh myself.” gets help from two outside contractors for such tasks they become traditional job creators. He and his wife recently hired a customer-service as content creation and customer service. He has at’s what happened to Colin Kamesh Raja, who person in India to provide 24/7 support. ey are found hiremymom.com to be an excellent source of emigrated from India in 2012, and his wife, Angie, now in the process of hiring more employees to grow quali ed workers. who hails from Trinidad. e couple, who share a RIMSports. With business humming—it brought in Lyon doesn’t have to contend with the challenges passion for recreational boxing, two years ago start- about $2 million last year—Angie Raja le her job of lling orders solo or the o en-prohibitive cost of ed RIMSports, an Amazon store that sells sporting on Wall Street about a year ago, and her husband, warehouse space in the city thanks to a contract with goods and tness accessories out of Kew Gardens, previously an assistant vice president at a big bank, a third-party logistics warehouse in Edison, N.J., and Queens. When his wife complained that much of quit his job in July. “I feel like I’m in a dream,” he the Ful llment by Amazon network. Amazon takes the available gear was in black and other drab col- said. “Don’t wake me up.” ■
FEBRUARY 12, 2018 | CRAIN’S NEW YORK BUSINESS | 21
P020_P021_CN_20180212.indd 21 2/8/18 11:18 AM TO PLACE A CLASSIFIED AD, CALL 1 212-210-0189 OR EMAIL [email protected]
POSITIONS AVAILABLE PUBLIC & LEGAL NOTICES
VP – Emerging Markets. NY, NY. Torino Omit, LLC Art. Of Org. Filed Sec. of Notice of formation of limited liability Notice of Qualification of TRIBECA Capital LLC. Provide financial guidance on State of NY 9/28/2017. Off. Loc.: Rich- company. Name: Park & Lex Brand, GROWTH FUND GP, LLC Appl. for Auth. emerging market securities in Argentina, mond Co. SSNY designated as agent LLC. Articles of Organization were filed filed with Secy. of State of NY (SSNY) Brazil, & Venezuela, Spanish speaking upon whom process against it may be with the Secretary of State of New York on 12/27/17. Office location: NY Coun- portfolio cos. Need BS in Engineering, Fi- served. SSNY to mail copy of (SSNY) on 11/15/2017.Office loca- ty. LLC formed in Delaware (DE) on 12/21/17. SSNY designated as agent nance or other analytical field. (or Foreign) process to The LLC, 248 London Rd, tion: New York County. SSNY has been Staten Island, NY 10306. Purpose: Any designated as agent of the LLC upon of LLC upon whom process against it Need 2 yrs. research in emerging market may be served. SSNY shall mail proc- in LAT region. Need institutional relations in lawful act or activity whom process against it may be served. SSNY shall Mail a copy of proc- ess to Brian Hirsch, 99 Hudson St., emerging market LAT countries. Series 7 & 15th Fl., NY, NY 10013. DE addr. of Notice of Qualification of venBio Select ess to the LLC, 1050 Park Ave, New Series 63 req. Fluent in Spanish & English, LLC: 251 Little Falls Dr., Wilmington, Advisor L.P. Appl. for Auth. filed with York NY 10028. Purpose: for any lawful verbal & written. 40% domestic travel & DE 19808. Cert. of Form. filed with Secy. of State of NY (SSNY) on activity. 60% international travel: Argentina, Ecua- Secy. of State, State of DE, Div. of 11/22/17. Office location: NY County. dor, Venezuela, among other countries. Corps., 401 Federal St., Dover, DE LP formed in Delaware (DE) on Notice of Qualification of BRIDGE IN- Apply at: [email protected]. 19901. Purpose: Any lawful activity. 12/29/16. NYS fictitious name: venBio VESTMENT GROUP LLC Appl. for Auth. Select Advisor New York L.P. Duration filed with Secy. of State of NY (SSNY) REQUEST FOR PROPOSAL of LP is Perpetual. SSNY designated as on 12/12/17. Office location: NY Coun- Notice of Qualification of EMERGING agent of LP upon whom process ty. LLC formed in Utah (UT) on VARIANT CAPITAL MANAGEMENT, LP against it may be served. SSNY shall 12/02/11. Princ. office of LLC: 280 Appl. for Auth. filed with Secy. of State The Wildlife Conservation Society, an EEO mail process to the Partnership, 120 Park Ave., 28th Fl., NY, NY 10013. of NY (SSNY) on 11/09/17. Office loca- employer, is currently soliciting bids for the W. 45th St., Ste. 2802, NY, NY 10036. NYS fictitious name: BRIDGE IG (REAL tion: NY County. LP formed in Delaware abatement of ACM at the New York Aquarium Name and addr. of each general part- ESTATE) LLC. SSNY designated as (DE) on 11/08/17. Princ. office of LP: on Coney Island. Only bids responsive to the ner are available from SSNY. DE addr. agent of LLC upon whom process Attn: Santiago Jariton, 3 Columbus Cir- entire scope of work will be considered. This of LP: Corporation Service Co., 251 Lit- against it may be served. SSNY shall cle, 15th Fl., NY, NY 10019. Duration work will be scheduled during spring of 2018. tle Falls Dr., Wilmington, DE 19808. mail process to c/o Corporation Serv- of LP is Perpetual. SSNY designated as Certified M/WBE and Small Business (13 Cert. of LP filed with Secy. of State, ice Co., 80 State St., Albany, NY agent of LP upon whom process CFR Part 121) companies are encouraged State of DE, Dept. of State, Townsend 12207-2543. UT addr. of LLC: 111 E. against it may be served. SSNY shall mail process to the Partnership at the to submit. In order to receive the bid package Bldg., Dover, DE 19901. Purpose: Any Sego Lily Dr., Ste. 400, Sandy, UT princ. office of the LP. Name and addr. interested parties should email purchasing@ lawful activity. 84070. Cert. of Form. filed with Dept. of Commerce Div. of Corps. and Com- of each general partner are available wcs.org or telephone WCS Purchasing at 718 from SSNY. DE addr. of LP: c/o Corpo- 220 5144 to receive scope, bid and other Notice of Qualification of venBio Se- mercial Code, 160 E. 300 South, Box 146705, Salt Lake City, UT 84115- ration Service Co., 251 Little Falls Dr., relevant documents. All bidders will be subject lect Advisor LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 6705. Purpose: Any lawful activity. Wilmington, DE 19808. Cert. of LP filed to government regulations, including 44 CFR 11/22/17. Office location: NY County. with Secy. of State of the State of DE, and Federal Executive Order 11246. Note that Div. of Corps., John G. Townsend Bldg., LLC formed in Delaware (DE) on Notice of formation of Dean Fine Build- while this is a New York City prevailing wage Federal & Duke of York Sts., Dover, DE 09/24/09. SSNY designated as agent ing LLC. Arts of Org filed with Secy. of 19901. Purpose: Any lawful activity. project, union affiliation is not required. Bid of LLC upon whom process against it State of NY (SSNY) on 11/8/17. Office s will be publicly opened at the Purchasing may be served. SSNY shall mail proc- location: NY County. SSNY designated Department, Bronx Zoo, 2300 Southern Bou- ess to the LLC, 120 W. 45th St., Ste. agent upon whom process may be Notice of Qualification of EMERGING levard, Bronx New York at 2:00 PM Tuesday, 2802, NY, NY 10036. DE addr. of served and shall mail copy of process VARIANT GP LLC Appl. for Auth. filed March 6, 2018.” LLC: Corporation Service Co., 251 Lit- against LLC to principal business ad- with Secy. of State of NY (SSNY) on tle Falls Dr., Wilmington, DE 19808. dress: 12 E 49th St., 11th Fl., NY, NY 11/10/17. Office location: NY County. Cert. of Form. filed with Secy. of 10017. Purpose: any lawful act. LLC formed in Delaware (DE) on PUBLIC & LEGAL State, State of DE, Dept. of State, 11/09/17. Princ. office of LLC: Attn: Santiago Jariton, 3 Columbus Circle, Townsend Bldg., Dover, DE 19901. Notice of Qualification of MIC CAPITAL NOTICES 15th Fl., NY, NY 10019. SSNY desig- Purpose: Any lawful activity. PARTNERS (US) LLC Appl. for Auth. nated as agent of LLC upon whom Notice of Qualification of THREE COURT filed with Secy. of State of NY (SSNY) process against it may be served. SPECIAL OPPORTUNITIES I, L.P. NOTICE OF FORMATION, PUNCHLIST on 12/20/17. Office location: NY Coun- SSNY shall mail process to the LLC at Appl. for Auth. filed with Secy. of State of PLUS LLC d/b/a PUNCH LIST PLUS ty. LLC formed in Delaware (DE) on the princ. office of the LLC. DE addr. NY (SSNY) on 12/12/17. Office location: LLC, Arts. of Org. filed with the Sec. of 11/09/17. SSNY designated as agent of LLC: c/o Corporation Service Co., NY County. LP formed in Delaware (DE) State of New York (SSNY) on of LLC upon whom process against it 251 Little Falls Dr., Wilmington, DE on 12/05/17. Duration of LP is Perpetu- 10/23/17. Office location: New York, may be served. SSNY shall mail proc- 19808. Cert. of Form. filed with Har- al. SSNY designated as agent of LP upon Cnty. SSNY is designated for service of ess to c/o Akin Gump Strauss Hauer & riet Smith Windsor, Secy. of State of whom process against it may be served. process. SSNY shall mail a copy of any Feld LLP, One Bryant Park, NY, NY the State of DE, Div. of Corps., John SSNY shall mail process to the Partner- process served against the LLC to, 307 10036. DE addr. of LLC: c/o Corpora- G. Townsend Bldg., Federal & Duke of ship, 60 Madison Ave., Ste. 1101, NY, West 38th Street, Suite 1218, New tion Services Co., 251 Little Falls Dr., York Sts., Dover, DE 19901. Purpose: NY 10010. The regd. agent of the compa- York, NY 10018. Purpose: any lawful Wilmington, DE 19808. Cert. of Form. Any lawful activity. ny upon whom and at which process purpose. filed with Secy. of State of DE, Dept. of against the company can be served is Ar- State, Div. of Corps., John Townsend thur Y. Roulac, c/o Three Court, LP, 60 Notice of Formation of CS 771 Ninth Bldg., Dover, DE 19901. Purpose: Any NOTICE OF FORMATION OF MULTIVARI- Madison Ave., Ste. 1101, NY, NY LLC. Arts. of Org. filed with Secy. of lawful activity. ATE SOLUTIONS, LLC. Articles of Organi- 10010. Name and addr. of each general State of NY (SSNY) on 1/4/18. Office zation filed with the Secretary of State partner are available from SSNY. DE location: NY County. SSNY designated Notice of Qualification of NEW APO of NY (SSNY) on 12/12/2017. Office addr. of LP: 251 Little Falls Dr., Wilming- as agent of LLC upon whom process NYC OWNER, LLC Appl. for Auth. filed location: NEW YORK County. SSNY has ton, DE 19808. Cert. of LP filed with against it may be served. SSNY shall with Secy. of State of NY (SSNY) on been designated as agent upon whom Secy. of State of the State of DE, 401 mail process to: c/o The LLC, 134 W. 12/21/17. Office location: NY County. process against it may be served. The Federal St., Dover, DE 19901. Purpose: 29th St., 4th Fl., NY, NY 10001. Pur- LLC formed in Delaware (DE) on Post Office address to which the SSNY Any lawful activity. pose: any lawful activity. 12/04/17. SSNY designated as agent shall mail a copy of any process of LLC upon whom process against it against the LLC served upon him/her Notice of formation of Isaacson Search Notice of Formation of LARK WADS- may be served. SSNY shall mail proc- is: 121 MADISON AVE, SUITE 7H, NEW Company, LLC arts of org. Filed with WORTH, LLC Arts. of Org. filed with ess to c/o Corporation Service Co., YORK, NY 10016. Secy. of state NY(SSNY) on Secy. of State of NY (SSNY) on 80 State St., Albany, NY 12207-2543. The principal business address of the 11/15/2017. Office location: NY Coun- 12/18/17. Office location: NY County. DE addr. of LLC: 251 Little Falls Dr., LLC is: 121 MADISON AVE, SUITE 7H, ty. Prin. Office of LLC: 205 Third Ave. Princ. office of LLC: 90 Park Ave., NY, Wilmington, DE 19808. Cert. of Form. NEW YORK, NY 10016. Purpose: any NY, NY 10003. SSNY designated as NY 10016. SSNY designated as agent filed with Secy. of State of the State lawful act or activity agent of LLC upon whom process of LLC upon whom process against it of DE, John G. Townsend Bldg., 401 against it maybe served, SSN shall may be served. SSNY shall mail proc- Federal St., Ste. 4, Dover, DE 19901. mail process to Registered Agent Inc. , NOTICE OF FORMATION OF EMILY JER- ess to Corporation Service Co., 80 Purpose: Any lawful activity. 90 State Str., suite 700, office 40, Al- OME ENTERTAINMENT, LLC. Articles of State St., Albany, NY 12207-2543, Organization filed with the Secretary of bany, NY 12207-2543. Purpose: Any regd. agent upon whom and at which lawful activity KATHERINE BURGHARDT KRAMER LAW State of NY (SSNY) on 12/13/2017. process may be served. Purpose: Any OFFICE PLLC. App. for Auth. filed with Office location: NEW YORK County. Notice of Formation of Upper West Side lawful activity. the SSNY on 12/01/17. Originally filed SSNY has been designated as agent Medical Doctor PLLC. Purpose: Medical with the Secretary of State of Vermont upon whom process against it may be Doctor’s office. Arts of Org filed w/ GREY HOUSE NYC LLC, Arts. of Org. on 11/04/2016. Office: New York served. The Post Office address to Secy. of NYS (SSNY) on 12/4/2017. filed with the SSNY on 01/08/2018. County. SSNY designated as agent of which the SSNY shall mail a copy of Location: NY County. Principal Busi- Office loc: NY County. SSNY has been the PLLC upon whom process against it any process against the LLC served ness Location: 46 W 86th ST STE 1A designated as agent upon whom proc- may be served. SSNY shall mail copy of upon him/her is: 575 PARK AVENUE, NY, NY 10024-3633. SSNY designated ess against the LLC may be served. process to the PLLC, 79 Court Street, NEW YORK, NY 10065. The principal agent of PLLC upon whom process may SSNY shall mail process to: The LLC, Suite 3, Middlebury, VT 05753. Pur- business address of the LLC is: 575 be served and shall mail copy of proc- 555 West 59th St., Unit 14C, NY, NY pose: For the practice of the profession PARK AVENUE, NEW YORK, NY 10065. ess against PLLC to address above. 10019. Purpose: Any Lawful Purpose. of Law. Purpose: any lawful act or activity
22 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 12, 2018
P022-23_CN_20180212.indd 22 2/8/2018 6:11:38 PM TO PLACE A CLASSIFIED AD, CALL 1 212-210-0189 OR EMAIL [email protected]
PUBLIC & LEGAL NOTICES
Notice of Qualification of THE OMARA NOTICE OF FORMATION OF James Seo Notice of Qualification of VBG 990 AOA Notice of Formation of UNTIL ONE HUN- PROJECT LLC Appl. for Auth. filed with Commercial, LLC. Articles of Organiza- MEMBER LLC Appl. for Auth. filed with DRED TWENTY, LLC Arts. of Org. filed Secy. of State of NY (SSNY) on tion filed with the Secretary of State of Secy. of State of NY (SSNY) on with Secy. of State of NY (SSNY) on 01/10/18. Office location: NY County. NY (SSNY) on 12/07/17. Office loca- 01/09/18. Office location: NY County. 01/11/18. Office location: NY County. LLC formed in Delaware (DE) on tion: NEW YORK County. SSNY has LLC formed in Delaware (DE) on SSNY designated as agent of LLC upon 10/19/17. SSNY designated as agent of been designated as agent upon whom 12/01/17. SSNY designated as agent whom process against it may be LLC upon whom process against it may process against it may be served. The of LLC upon whom process against it served. SSNY shall mail process to c/o be served. SSNY shall mail process to Post Office address to which the SSNY may be served. SSNY shall mail proc- Matthew H. Kamens, 1650 Market St., c/o Corporation Service Co. (CSC), 80 shall mail a copy of any process ess to c/o Corporation Service Co., 80 Ste. 2800, Philadelphia, PA 19103. State St., Albany, NY 12207-2543. DE against the LLC served upon him/her State St., Albany, NY 12207-2543. DE Purpose: Any lawful activity. addr. of LLC: c/o CSC, 251 Little Falls is: Registered Agent Solutions, Inc., 99 addr. of LLC: 251 Little Falls Dr., Wil- Dr., Wilmington, DE 19808. Cert. of Washington Ave., Suite 1008, Albany, mington, DE 19808. Cert. of Form. filed Notice of formation of Trufflery LLC. Arts Form. filed with DE Secy. of State Corps. NY 12260. The principal business ad- with DE Secy. of State, Div. of Corps., of Org filed with Secy of State of NY Div., 401 Federal St., Dover, DE 19901. dress of the LLC is: 30 W 60th Street, John G. Townsend Bldg., 401 Federal (SSNY) on 12/11/17. Office location: NY Purpose: Any lawful activity. Floor 2, New York, NY 10023. Purpose: St. - Ste. 4, Dover, DE 19901. Pur- County. SSNY designated agent upon any lawful act or activity. Notice of formation of Bethel Road LLC pose: Any lawful activity. whom process may be served and shall mail copy of process against LLC to: US Arts. of Org. filed with the NY Sect’y of NOTICE OF FORMATION OF NERVE Los Notice of formation of Andreas Gomoll State (SSNY) on 11/1/2017. Office lo- Corp Agents Inc 7014 13th Ave #202 BK Tres Preservation, LLC Application for LLC. Arts of Org filed with Secy. of NY 11228. Principal business address: cated in NY County. SSNY has Authority filed with the SSNY on 01-11- State of NY (SSNY) on 12/7/17. Office been designated as agent of the LLC 796 9th Ave 2 NYC 10019. Purpose: any 18. Office: New York County. SSNY location NY County. SSNY designated lawful act. upon whom process against it may be designated as an agent of LLC upon agent upon whom process may be served. SSNY shall mail process to: whom process against it may be served and shall mail copy of process CMT Portfolio Advisors, 150 W 56th Notice of Qualification of G&S INVEST- served. SSNY shall mail a copy of proc- against LLC to principal business ad- ORS CONSTRUCTION MANAGEMENT St., Apt. 4508, NY NY 10019. Purpose: ess to 251 Little Falls Drive, Wilming- dress: 350 E 79th Street, New York, any lawful act. LLC Appl. for Auth. filed with Secy. of ton, DE 19808. Purpose: any lawful NY 10075. Purpose: any lawful act. State of NY (SSNY) on 01/24/18. Of- Notice of Qualification of VILLAGE APTS activity. fice location: NY County. LLC formed in 4DS LLC Appl. for Auth. filed with Secy. NOTICE OF FORMATION of Fresh Har- Delaware (DE) on 01/19/18. SSNY Broome Street Penthouse, LLC. Arts. of of State of NY (SSNY) on 09/27/17. Of- vest Valley, LLC. Articles of Organiza- designated as agent of LLC upon whom Org. filed with the SSNY on 01/11/18. fice location: NY County. LLC formed in tion filed with Secretary of State of New process against it may be served. Office: New York County. SSNY designat- Delaware (DE) on 09/20/17. SSNY York (SSNY) on 12/26/2017. Office lo- SSNY shall mail process to the LLC, ed as agent of the LLC upon whom proc- designated as agent of LLC upon whom cation: New York County. SSNY desig- 211 E. 43rd St., 25th Fl., NY, NY ess against it may be served. SSNY shall process against it may be served. nated agent upon whom process may 10017. DE addr. of LLC: 251 Little mail copy of process to the LLC, c/o Jer- SSNY shall mail process to c/o Gibson, be served and shall mail copy of proc- Falls Dr., Wilmington, DE 19808. Cert. ry Feeney, 33 East 33rd Street, 4th Dunn & Crutcher LLP, Attn: Steven ess against LLC to its designated regis- of Form. filed with Secy. of State, 401 Floor, New York, NY 10016, which also Klein, 200 Park Ave., NY, NY 10166. tered agent: United States Corporation Federal St., Dover, DE 19901. Pur- serves as the registered agent address. DE addr. of LLC: Corporation Service Agents, Inc., 7014 13th Ave., #202, pose: Any lawful activity. Co., 251 Little Falls Dr., Wilmington, Purpose: Any lawful purpose. Brooklyn, NY 11228. Principal Busi- ness address: 447 Broadway, 2nd DE 19808. Cert. of Form. filed with Rothman Orthopaedics of New York, NOTICE OF FORMATION of Fortitude Sol- Floor, New York, NY 10013. Purpose: Secy. of State of DE, Div. of Corps., PLLC. Articles of Org. filed Sec. of John G. Townsend Bldg., 401 Federal utions, LLC. Articles of Organization of any lawful act. Fortitude Solutions, LLC were filed with State (SSNY) on 12/4/17. Office: 29 St., Dover, DE 19901. Purpose: Any Notice of Qualification of FLIGHT CLUB E. 19th St., 7th Fl., NY, NY 10003, NY lawful activity. Secy of State of New York (SSNY) on 1/2/18. Office location: NY County. NEW YORK LLC Appl. for Auth. filed County. SSNY desig. agent of LLC Notice of Qualification of INTEGRATED SSNY is designated as agent of the with Secy. of State of NY (SSNY) on upon whom process may be served. ASSETS III LLC Appl. for Auth. filed with LLC upon whom process against it may 01/22/18. Office location: NY County. SSNY shall mail copy of process to Nix- Secy. of State of NY (SSNY) on be served and shall mail a copy of the LLC formed in Delaware (DE) on on Peabody LLP, 677 Broadway, Alba- 01/31/18. Office location: NY County. process to 245 Park Avenue, 18th 10/05/17. NYS fictitious name: ny, NY 12207. Purpose: medicine. LLC formed in Delaware (DE) on Floor, NY NY 10167. Purpose is: all FLIGHT CLUB NEW YORK (DE) LLC. 01/29/18. SSNY designated as agent lawful acts or activities. SSNY designated as agent of LLC Notice of Formation of AVALANCHE of LLC upon whom process against it upon whom process against it may be FALLS LLC Arts. of Org. filed with Secy. may be served. SSNY shall mail proc- BASIL REALTY LLC. Arts. of Org. filed served. SSNY shall mail process to of State of NY (SSNY) on 01/30/18. Of- ess to c/o Corporation Service Co. with the SSNY on 12/22/17, with an c/o Corporation Service Co. (CSC), 80 fice location: NY County. Princ. office (CSC), 80 State St., Albany, NY 12207- existence date of 01/01/2018. Office: State St., Albany, NY 12207-2543. DE of LLC: 299 Park Ave., 42nd Fl., NY, NY 2543. DE addr. of LLC: c/o CSC, 251 New York County. SSNY designated as addr. of LLC: c/o CSC, 251 Little Falls 10171. SSNY designated as agent of Little Falls Dr., Wilmington, DE 19808. agent of the LLC upon whom process Dr., Wilmington, DE 19808. Cert. of LLC upon whom process against it may Cert. of Form. filed with DE Secy. of against it may be served. SSNY shall Form. filed with Secy. of State, John be served. SSNY shall mail process to State, John G. Townsend Bldg., 401 mail copy of process to the LLC, 51 G. Townsend Bldg., 401 Federal St., the LLC, Attn: General Counsel at the Federal St. - Ste. 4, Dover, DE 19901. West 14th Street, New York, NY Ste. 4, Dover, DE 19901. Purpose: princ. office of the LLC. Purpose: Any Purpose: Any lawful activity. 10011. Purpose: Any lawful purpose. Any lawful activity. lawful activity.
FEBRUARY 12 2018 | CRAIN’S NEW YORK BUSINESS | 23
P022-23_CN_20180212.indd 23 2/8/2018 6:11:46 PM GOTHAM GIGS
IN LIVING COLOR: Goldstein, with her dog, Scout, has a BY LANCE PIERCE knack for knowing what kids want to wear.
Dressing her inner child Upper West Sider left her corporate consulting job to make and sell kids’ clothes
ince she was a child, Stephanie Goldstein dreamed seller. Two years later she launched a wholesale line, which of having her own clothing store. “One of my now represents 30% of annual revenue. STEPHANIE GOLDSTEIN favorite childhood memories is decorating a zip Even as other local children’s retailers have succumbed sweatshirt with satin moons and stars when I was to soaring rents and online competition, the Stoopher & AGE 42 S6,” she said. “I’ve always loved kids’ clothing.” Boots store doubled in size to 1,300 square feet last month. BORN Wyckoff, N.J. A er college, though, Goldstein chose a steady pay- Sales reached $1.25 million last year—up 20% from 2016. RESIDES Upper West Side check over pursuing her passion and took a job With one full- and two part-time employees, EDUCATION Bachelor’s in as a consultant at Accenture, advising blue-chip Goldstein averages 30 transactions per day. She sociology and anthropology, companies on corporate strategy and product “My store knows the names and sizes of her regular cus- Colgate University development. But a er 13 years, she hung up is a safe tomers’ kids, and though she has no children of WHAT’S IN A NAME? Stoopher her power suit and made her childhood fantasy space her own, she is a maternal gure to many. For and Boots were childhood nick- a reality. ” years a group of students from a nearby public names for Goldstein and her sister, given to them by their dad. In 2010 Goldstein opened Stoopher & Boots, middle school ate lunch in the back of her shop. now a xture on the Upper West Side. e store is known “My store is a safe space,” she said. Now in high school, BRUSH WITH FAME Goldstein is still thrilled at the memory of deliv- for its fashionable and well-made children’s apparel and members of that group still stop by to visit Goldstein’s ering a Stoopher & Boots gift box to accessories—and for Goldstein’s open-arms approach. ever-present dog, Scout, a King Charles spaniel. actor Matt Damon for his daughters. She used money she saved from her corporate pay- Like other children’s-store owners, Goldstein analyzes WORK-LIFE BALANCE Goldstein checks to start the business. At rst she carried handmade manufacturer trends and attends trade shows. But it is her lives around the corner from the items—adults’ and children’s clothing, plus toys and acces- rapport with customers that gives her a 100% sell-through store and works there seven days sories—because she thought they represented the greatest rate. Goldstein might ask kids to circle what they like in a a week, often for 10 hours at a unmet need in the market. In a nod to her early ambitions, catalog or chat with them about new styles. time. “The store is my baby and an extension of me. I feel like I retired she also sold children’s T-shirts that she had designed. “ ere’s a little girl who stops by on her walk home from and this is my passion that I nally Goldstein quickly observed that children’s clothing was school every a ernoon,” Goldstein said. “When her baby get to live every day.” the most popular category and decided to focus on it. Her sitter once asked her why she did it, the girl said, ‘Wouldn’t RETAIL SWEET SPOT Preteens
BUCK ENNIS in-house T-shirt brand, Sparkle by Stoopher, was a top you hug your best friend?’ ” — DIANE HESS
24 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 12, 2018
P024_CN_20180212.indd 24 2/9/18 6:28 PM SNAPS
Songs for schools Exploring the Arts’ star-studded 11th annual bene t Jan. 30 included performances by the organization’s co-founder, Tony Bennett, winner of 19 Grammy Awards, and Tony-winning actor and singer Brian Stokes Mitchell. e nonpro t’s mission is to strengthen the role of the arts in public high school education. Its rst endeavor was teaming with the city’s Department of Education to create the Frank Sinatra School of the Arts in Astoria, where Bennett grew up. Now it supports 38 public high schools in the city and Long Island and in Los Angeles County.
Bob Pittman, chief executive of iHeartMedia, with gala honoree Richard Bressler, president, chief operating o cer and chief nancial o cer of iHeartMedia. e party raised $1 million.
Wé McDonald, a season 11 nalist on e Voice, performed at the gala. She joined Tony Bennett and his wife, Exploring the Arts’ co-founder Susan Benedetto, at the event at Ziegfeld Ballroom. Bowling History for kids for dollars e DiMenna Children’s e Stuttering Association History Museum at the for the Young counts actor New-York Historical Paul Rudd among its Society hosted its sixth board members. He hosted annual Family Bene t the sixth annual All-Star Party Jan. 20. Louise Bowling bene t for the or- Mirrer, the society’s ganization Jan. 22 at Lucky president and chief Strike Manhattan. e executive, and Diana Ant-Man star is anked by DiMenna, the muse- Richard Hsieh, director um’s co-founder and an of RBC Capital Markets, event chair, were among and Vincent Lin, director the crowd of 500. and executive producer at Valiant Pictures.
Stuart Spodek, managing director at BlackRock, and his wife, Kimberly, an attorney at her own law rm, during the Event chair Greg party, which raised a Lippmann, chief record $170,000. information o cer at Libremax Capital, with his daughter, Dahlia. e party brought in $190,000 for family and educational programming.
GARY GERSHOFF/GETTY IMAGES, SYLVAIN GABOURY/PATRICK MCMULLAN, HEIDI GIACALONE GABOURY/PATRICK GERSHOFF/GETTY IMAGES, SYLVAIN GARY SEE MORE OF THIS WEEK’S SNAPS AT CRAINSNEWYORK.COM/SNAPS. GET YOUR GALA IN SNAPS. EMAIL [email protected].
FEBRUARY 12, 2018 | CRAIN’S NEW YORK BUSINESS | 25
P025_CN_20180212.indd 25 2/9/18 12:58 PM FOR THE RECORD*
NEW IN TOWN Square. It’s the fourth and Village. e mixed-use Brook eld and a team from e landlord, Olmstead was represented in-house. biggest of the budget hotel’s buildings—which currently CBRE. JLL represented the Properties, was represented Avison Young brokered the ■ Boris & Horton locations. It also o ers 45 have three retail spaces tenant. in-house. deal for the tenant. 195 Avenue A apartments—600 to 800 leased by a computer store, e city’s rst puppy café square feet each—for short- a candy shop and a Japanese ■ Knotel signed a 10-year ■ e Crime Victims ■ Fleischner Potash signed opened in the East Village. term and long-term leasing. restaurant—sold for lease for 23,464 square Treatment Center agreed a three-year lease for 7,000 To comply with health laws, $14.25 million. Brax Realty feet at 584-588 Broadway to take 8,630 square feet at square feet at 14 Wall St. co ee and booze are served represented the buyer and in SoHo. e provider of 40 Exchange Place. e e insurance law rm, in a space partitioned by BANKRUPTCIES the seller, Allen Park. exible oce space plans nonpro t, which provides based in White Plains, plans glass from areas where ani- to occupy the entire fourth services to victims of sexual to use the oce space for its mals can roam. e eatery ■ Brooklyn Women’s ■ SKF Development bought oor of the 12-story build- violence, plans to relocate lawyers with clients in the also hosts dog-adoption Pavilion facilities a 99-year ground lease for a ing between Houston and from its 126 W. 60th St. city. CBRE represented the events. 106-12 Liberty Ave., 12,126-square-foot vacant Prince streets. e asking oce. e asking rent for landlord, Alex Rovt. Vicus Queens lot at 2306 Webster Ave. rent was not disclosed. the 15-year deal was in the Partners brokered for the ■ Brooklyn Heights e obstetrics and gyne- in the Belmont section Skylight Leasing handled $50s per square foot. e tenant. e asking rent was Social Club cology practice in Ozone of the Bronx for nearly the deal for the tenant. landlord, GFP Real Estate, $49 per square foot. ■ 60 Furman St. Park led for Chapter 11 $45 million. e Chelsea- A new bar with an expan- bankruptcy protection based developer plans to sive view of the East River Jan. 24. e ling cites use the space to develop a opened on the 10th oor of estimated assets of $100,001 mixed-use building with 71 DEALS ROUNDUP the 1 Hotel. to $500,000 and liabilities of residential units and 9,000 TRANSACTION SIZE BUYERS/ $50,001 to $100,000. square feet of retail space. TARGET/SELLERS [IN MILLIONS] INVESTORS TRANSACTION TYPE ■ I+care Pharmacy Asset Commercial Realty 200B Livingston St., ■ Bridgehampton Stone Group handled the deal for F&R business of Thomson $17,000 Canada Pension Plan SB M&A Reuters Corp. (55%)/ Investment Board; GIC Pte. Brooklyn 2276 Steinway St., Astoria the buyer and the owner, Thomson Reuters Corp. Ltd.; The Blackstone Group LP is boutique pharmacy, e family-run fabrication, the Negron family. (Manhattan) which o ers eye exams installation and restoration Ablynx NV/Bank of America $5,376.6 Sano SB M&A and other optical services, company led for Chapter COMMERCIAL Corp., asset-management arm; opened in Downtown 11 bankruptcy protection ■ e New York Consonance Capman GP LLC (Manhattan); Life Sciences Partners Brooklyn. Jan. 24. e ling cites esti- Liquidation Bureau signed BV; Perceptive Advisors LLC mated assets and liabilities a 15-year lease for 43,138 (Manhattan); Van Herk Investments BV ■ Notoriouss of $0 to $50,000. square feet at 180 Maiden Ply Gem Holdings Inc./CI Capital $2,367.1 Clayton, Dubilier & Rice Inc. FB M&A 514 Atlantic Ave., Brooklyn Lane. e state agency, Partners LLC (Manhattan); Fidelity (Manhattan) T’yanna Wallace opened ■ Golden City 888 which takes over impaired Management and Research Co.; a Boerum Hill shop to d/b/a Golden Palace or insolvent insurance Putnam Investment Management LLC celebrate and remember 141-19 Cherry Ave., companies, plans to move Sirtex Medical Ltd./Allan Gray $1,279.6 Varian Medical Systems Inc. SB M&A her father, Brooklyn native Flushing part of its oces from 110 Australia Pty. Ltd.; Allan Gray Ltd.; Challenger Ltd.; Consonance Capital Biggie Smalls, and sell e Chinese restaurant led William St. e asking rent (Manhattan); Goldman Sachs Asset her own hip-hop-inspired for Chapter 11 bankruptcy was in the high $50s per Management Australia Pty. Ltd.; clothing. protection Jan. 22. e ling square foot. Savills Studley Hunter Hall Investment Management Ltd.; MLC Investment Management Ltd. cites estimated assets and represented the tenant. ■ Pelicana liabilities of $0 to $50,000. e landlords, MHP Real ECS Federal Inc./ $775 On Assignment Inc. SB M&A 11 W. 32nd St. Estate Services and Clarion Lindsay Goldberg (Manhattan) One of South Korea’s oldest Partners, were represented Carlisle FoodService Products Inc./ $750 The Jordan Co. LP FB M&A fried chicken chains opened STOCK TRANSACTIONS by Cushman & Wake eld Carlisle Etcetera LLC (Manhattan) (Manhattan) its rst U.S. location, in and by an in-house team 3.25-acre Manhattan site/ $700 Canada Pension Plan SB M&A Koreatown. On the menu ■ Foot Locker Inc. (FL-N) from MHP. Atlas Capital Group LLC (Manhattan); Investment Board; are eight varieties of chicken CEO Richard Johnson sold Westbrook Partners (Manhattan) Oxford Properties Group Inc. and a selection of Korean 25,000 shares of common ■ Industrial Color Brands Public relations solutions and $335 West Corp. SB M&A beer and soju. stock for $50.05 per share inked a deal to renew its digital media services businesses of Nasdaq Inc./Nasdaq Inc. (Manhattan) Jan. 19 in a transaction 38,000-square-foot space at ■ The Little One worth $1,251,250. He now 32 Sixth Ave. in TriBeCa CoreOS Inc./Accel Partners; Fuel $250 Red Hat Inc. SB M&A 150 E. Broadway holds 258,185 shares. and add 18,000 square feet. Capital; GV; Intel Capital; Kleiner Perkins Cau eld & Byers; Work-Bench Two pastry chefs who e production-services Ventures (Manhattan); Y Combinator worked at Dominique ■ Tiffany & Co. (TIF-N) company plans to be in the Management LLC Ansel’s bakery have opened Jean-Marc Bellaiche, senior 27-story building for at least Joby Aviation LLC $100 Allen & Co. Inc., GCI their own ve-table vice president of strategy 10 more years. e asking investment arm (Manhattan); Japanese dessert spot on the and business development, rent was $79 per square AME Cloud Ventures; Capricorn Investment Group LLC; EDB Lower East Side. e menu sold 9,170 shares of com- foot. e landlord, Rudin Investments Pte. Ltd.; Eight Partners; has just nine items, which mon stock for $109.47 per Management Co., was repre- individual investors; Intel Capital; pair well with its green share Jan. 24 in a transac- sented in-house. Newmark JetBlue Technology Ventures; Toyota AI Ventures matcha and hojicha teas. tion worth $1,003,853. He Knight Frank brokered the now holds 5,013 shares. deal for the tenant. Onyx on First Apartment Community/ $95.5 Atalaya Capital Management SB M&A J.P. Morgan Investment Management LP (Manhattan); Urban Inc. (Manhattan) Investment Partners LLC MOVES AND EXPANSIONS ■ Yext (YEXT-N) ■ Humanscale agreed to CEO Howard Lerman sold take 33,000 square feet at Selected deals announced for the week ending Feb. 1 involving companies in metro New ■ Ikinari Steak 30,000 shares of common 11 E. 26th St. in NoMad. York. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing 368 W. 46th St. shares of a company without the participation of a financial buyer. FB M&A: Financial buyer stock for $12.46 per share e designer and maker of M&A represents a minority or majority acquisition of existing shares of a company with the e Japanese spot, known Jan. 24 in a transaction ergonomic oce products participation of a financial buyer. GCI: Growth capital investment represents new money for its fast service and worth $101,629. He now plans to move from 1114 invested in a company for a minority stake. SOURCE: CAPITALIQ absence of chairs, opened holds 4,845,461 shares. Sixth Ave. e asking rent its third location, in Hell’s for the 10-year deal was GET YOUR NEWS ON THE RECORD Kitchen. not disclosed, but on the * To submit company openings, moves or real estate deals, or to receive further information, REAL ESTATE building’s lower oors, the email [email protected]. ■ Pod Hotel asking rent was reportedly 400 W. 42nd St. RETAIL in the high $80s per square For the Record is a listing to help businesspeople in New York nd opportunities, potential new clients and updates on customers. Bankruptcy lings from the eastern and southern e micro-hotel chain, ■ Hubb NYC bought two foot. e owners, Brook eld ABOUTTHIS SECTION districts of New York are listed alphabetically. Stock transactions are insider transactions at which o ers compact spaces 5-story buildings totaling Property Partners and e New York companies obtained from Thomson Reuters and listed by size. Real estate listings and bunk beds, opened its 14,900 square feet at 186- Swig Co., were represented are in order of square footage. agship hotel, in Times 188 First Ave. in the East by an in-house team from
26 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 12, 2018
P026_CN_20180212.indd 26 2/9/18 12:56 PM PHOTO FINISH Lion’s share he Lunar New Year is Friday, Feb. 16, and the high school–age members of Karlin Chan’s lion-dance troupe have been busy rehearsing at the New York Chinese Freemasons Athlet- Tic Club on Canal Street. “About eight days a er the New Year, one of our lion-dancer groups weaves its way through China- town, wishing businesses well in the New Year,” Chan said. “ e store owners bow three times and give a red envelope with some money as a donation. You don’t know how much, but typically it’s $2 to $5. It used to be more pro table, so now we split up in teams and send dancers to private performances.” e Freemasons perform at restaurants, private parties, parades and more. ey don’t always charge for their services—as a nonpro t, their goal is to spread traditional Chinese culture—but private shows typically cost $500 to $750. “We aren’t a business,” Chan said, “but we have to pay the rent somehow.” — GERALD SCHIFMAN BUCK ENNIS
FEBRUARY 12, 2018 | CRAIN’S NEW YORK BUSINESS | 27
P027_CN_20180212.indd 27 2/9/18 6:53 PM POSITION YOURSELF FOR EXCELLENCE
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