20100208-NEWS--0001-NAT-CCI-CN_-- 2/5/2010 7:59 PM Page 1 INSIDE NEXT WEEK TOP STORIES REAL ESTATE Return of the REITs What to read PLUS Top leases into Ron Burkle’s and property sales Barnes & Noble bid ® AND Bad landlords PAGE 2 Investor takes a VOL. XXVI, NO. 6 WWW.CRAINSNEWYORK.COM FEBRUARY 8-14, 2010 PRICE: $3.00 powder on ski resorts PAGE 2 Curtain Fashion Week rises on crowd discovers meatpacking Brooklyn district--again PAGE 3 arts center Can anyone save Saint Vincent’s? Construction to start THE INSIDER, PAGE 8 on 6 projects in BAM nabe totaling $100M+ Why Paterson’s Aqueduct choice BY MIRIAM KREININ SOUCCAR smells so bad after years of canceled projects and EDITORIAL, PAGE 10 false starts, the cultural district planned for the neighborhood around the Brooklyn Academy of Music is finally HOT TIP: Informed gaining momentum. of his legal rights by a co-worker, Tony Over the next year, construction on walked out on his six cultural and public projects worth a employers of 20 total of well over $100 million is slated years—and sued to begin in the area between Fulton and them. Lafayette streets in Fort Greene, Brooklyn. The projects include the long- awaited new building for Theatre for a New Audience; a renovation of the Strand Theater building;a third theater venue for BAM itself; a new park; and new sidewalks, trees and lighting BUSINESS LIVES throughout the area. In addition, BAM is expected to close this week on the GOTHAM GIGS See BAM GROWS on Page 20 Visit this shopgirl for Valentine’s Day P. 21 G ANNE FISHER says the boss should take a break buck ennis MSG spinoff every now and then P. 21 G MOVERS & SHAKERS She played surprise role no Garden in terrorist trial shift P. 22 G GAEL GREENE goes to Colicchio & Sons P. 23 PitytheDeliveryGuy party Underpaid, overworked, mugged. Don’t even start Renovation costs INDEX on those lousy tippers. Is anyone looking out for him? soar as sports arena NEIGHBORHOOD JOURNAL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _9 splits from Cablevision CRAIN’S ONLINE POLL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _10 OPINION _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _11 be used because he doesn’t want to jeopardize his BY LISA FICKENSCHER BY AARON ELSTEIN REAL ESTATE DEALS PLUS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _12 new position. A Latino immigrant who speaks limited English CLASSIFIEDS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _17 tony was employed as a deliveryman by Adriatic and is only semiliterate in Spanish, Tony worked the new york knicks are asking fans to FOR THE RECORD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _19 Italian Restaurant & Pizzeria in midtown for 20 many 70-hour weeks for as little as $10 or $15 per “declare your allegiance” and purchase HOT JOBS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _21 years before he mustered the courage to leave his shift plus tips, according to his sworn statements. tickets to the struggling basketball EXECUTIVE MOVES _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _21 job—and sue his former bosses for underpaying him. The four brothers who own Adriatic even forced team’s games. But this week, dedicated THE WEEK AHEAD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _23 “I was tired of these people, who always insulted him to pay up front for each meal he delivered. fans can go even farther:For a fraction of me,”says Tony,who requested that his last name not See PITY on Page 20 the price of most seats, they can buy a piece of Madison Square Garden. On Tuesday, MSG will be spun off 06 5 REPORT SMALL BUSINESS from longtime parent Cablevision Sys- tems and begin life as a stand-alone Where’s the money? Crain’s guide public company.The move is designed ELECTRONIC EDITION to the new world of financing mostly to make the Cablevision enter- tainment amalgam appear simpler and Plus: Wall Street spinoffs PAGE 13 more attractive to big investors seeking NEWSPAPER See NO GARDEN PARTY on Page 20 71486 01068 0 20100208-NEWS--0002,0003-NAT-CCI-CN_-- 2/5/2010 8:00 PM Page 1 IN BRIEF MEMORIAL SLOAN-KETTERING CANCER Billionaire gets a good read CENTER GOT THE GREEN LIGHT LAST WEEK from the judge overseeing the bankruptcy of Cabrini Medical Center to purchase the former Cabrini site—a five-building complex on Barnes & Noble’s value at 227 E. 19th St.—for $83.1 million. Pending all approvals, MSKCC plans to renovate and convert the property into an outpatient cancer for those years.” center. Can Ron Burkle invigorate bookseller? A spokeswoman for the bookseller de- clined to comment. THE HELMSLEY MIDDLETOWNE HOTEL, ONE OF In the six months ended Oct. 31, 2009, FOUR MANHATTAN HOTELS IN THE LATE LEONA BY MATTHEW FLAMM Barnes & Noble posted a small net loss of Helmsley’s estate, plans to close its doors in $12 million on $2.3 billion in revenue. May, according to a filing with the New York private equity billionaire Ron With nearly 800 superstores around the State Department of Labor.The 192-room Burkle built his fortune betting on country, and more than 600 college book- hotel’s lease will expire after 82 years of businesses that other investors stores, the company will alone account for hospitality services at 148 E. 48th St., between shunned, starting with grocery-store 18% of the book industry’s projected $26.4 Lexington and Third avenues. It’s the first chains in low-income neighbor- billion in sales in 2010, according to re- major hotel closure since 2005, according to hoods. But his current play for search firm IBISWorld—a share roughly John Fox of PKF Consulting, and will affect 79 Barnes & Noble Inc. may be his on par with that of online giant employees, including 25 who are members of oddest yet. Amazon.com. the New York Hotel & Motel Trades Council. The share price for the na- The closure will not affect any of the other tion’s largest bricks-and-mortar Mystery man Helmsley brand hotels, including the New York bookseller has tumbled 50% in nobody knows what precisely Mr. Burkle Helmsley, which has 776 rooms, and the Park the past three years. Store sales and his Yucaipa Cos.investment firm have Lane, which has 587. have dropped for the last six in mind for Barnes & Noble. In his letter quarters in a row. And analysts, to the board, he claimed that the stock JUST IN TIME FOR VALENTINE’S DAY, THE BOW most of whom have a “sell”rating price was being hurt by the poison pill, BRIDGE HAS BEEN DECLARED THE MOST on the stock,expect e-readers like which limits his stake to 20%. He also ac- romantic spot in Central Park, according to a the Kindle and the new iPad to eat cused members of being too cozy with Len buck ennis survey conducted by inexorably into what profits the Riggio, the company’s founder and chair- the Central Park company has. man, whose 37% stake Mr. Burkle would Conservancy. Mr. Burkle, who just raised his NEXT CHAPTER: Nobody knows precise- like to match. Throughout the stake to 19%, has a different read ly what Ron Burkle has in mind for B&N. He also complained about the compa- month of January, on Barnes & Noble. He sees a stock ny’s purchase last year of privately held more than 1,000 so undervalued that he asked the Barnes & Noble College Booksellers.The people voted on the company’s board in a recent letter to pal of former President Bill $600 million deal rubbed a lot of investors agency’s Web site, do away with a “poison pill” provision Clinton, brings a track record the wrong way, because the company was recounting their own romantic moment at the so that he could double his holdings. of turning around low-mar- owned by Mr. Riggio. spot.The Bow Bridge—built in 1862, making gin retailers. What Mr.