er arrow to its high-tech quiver. The ... Bloomberg's net worth at a cool $25 billion, up 32% from a year earlier and enough to rank him as. America's...0 downloads 11 Views 6MB Size
CRAIN’S NEW YORK BUSINESS
VOL. XXVIII, NO. 39
SOCCER IS THE NEW GOLF PAGE 25
SEPTEMBER 24-30, 2012 PRICE: $3.00
Mags to riches New York’s Adam Moss is having his ‘Approval Matrix’ moment. The company’s cashing in online. A publishing puzzle solved BY MATTHEW FLAMM
To its groaning shelf of National Magazine Awards and bulging portfolio of stories extolling its business success, New York magazine can add one more credit: It’s having its best year in a decade. Both profits and revenue are the highest they’ve been since financier Bruce Wasserstein bought the barely prof-
itable publication in late 2003 for $55 million and lured Adam Moss from The New York Times to become editor in chief. That move was among several that would make New York what it is now: a growth property at a time when much of the rest of the industry is struggling to hold its ground. Observers also praise New York’s owners for their willingness to invest for the long term and a nimble business team that’s equally adept at selling print and digital advertising. See NEW YORK on Page 12
Inside The Bents: They broke the buck. They’re back p.4 NY billionaires sway elections, but do they even vote here? p.6 ELECTRONIC EDITION Bowery brews p.3
ELECTRONIC EDITION ELECTRONIC ELECTRONICEDITION EDITION
NY AREA’S LARGEST ACCOUNTING FIRMS PAGE 17
STATS AND THE CITY TOBACCO’S TAB For decades, the government has warned us about the health hazards posed by smoking. Less trumpeted is the high financial cost, especially for the poor—a cost hugely buoyed by taxes.
25% Portion of household income poorest
NY smokers spend on cigarettes
$12.50 Cost of a pack of Marlboros in NYC, up 5% from 2011
14.2% Portion of NYC adults who smoked in 2010, vs. 21.5% in 2002
8.4% Portion of NYC students who admitted to smoking in 2009, vs. 24.1% in 1999 Sources: NYC Dept. of Health, RTI International, NYC Dept. of Finance, TheAwl.com
VC WELL RUNNING DRY Corporate venture capital funding in New York fell for a fourth straight quarter. $232M
$97M $54M 2Q/’11
$30M 2Q/’12 Source: CB Insights
ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY
THIS WEEK IN CRAIN’S
Shave and a haircut, two bits? Hardly. How Russell Manley is cashing in on men’s desire for a groom of their own. P. 7
IN THE BOROUGHS-------------------------- 3 IN THE MARKETS ----------------------------------4 THE INSIDER -----------------------------------------------6 CORPORATE LADDER --------------------8 SMALL BUSINESS ------------------------------9 OPINION --------------------------------------------------------10 GREG DAVID--------------------------------------------11 REPORT: ACCOUNTING -----------13 THE LIST ---------------------------------------------------------17 CLASSIFIEDS -----------------------------------------20 REAL ESTATE DEALS -------------------24 NEW YORK, NEW YORK ----------25 SOURCE LUNCH --------------------------------26 OUT AND ABOUT ------------------------------27 SNAPS --------------------------------------------------------------27
he opposite ends of the income scale are getting farther apart. Census figures showed a big jump in those living in poverty in the city in 2011 even as the richest New Yorkers got richer. The gap is predictably greatest in Manhattan. There, the top 20% of earners took home 40 times as much money last year as the bottom 20%—up from 38 times in 2010. The New York Times compared that disparity with levels typically seen only in the poorest of countries in sub-Saharan Africa. Census figures show that the percentage of people living below the poverty line in the city as a whole rose a full percentage point, to 21%. And yes, so far this year the employment picture has brightened, but the gains have been modest, and many of the new jobs have come with low wages. Life in the middle is also getting tougher. Recent record rents are saddling the middle class with housing costs that are officially defined as “unaffordable,” according to a report released by City Comptroller John Liu. The situation is most acute in Manhattan, where 45% of middleincome renters are paying more than they can afford to. Meanwhile, there was good news last week for the mayor. Forbes estimated Michael Bloomberg’s net worth at a cool $25 billion, up 32% from a year earlier and enough to rank him as —lauren elkies America’s 10th-richest person.
Mind the (yawning) NYC income gap
OWS RETURNS, CITY INDIFFERENT. a 401(k) and matching funds. VeriHundreds gathered to mark the first zon’s shares rose modestly on the anniversary of the Occupy Wall Street news. … NY SCORES SWISS COUP. movement, which dominated head- Courtesy of giant drugmaker Roche, lines for weeks last year,drawing thou- New York City will be adding anothsands of rich and poor alike. A sit-in er arrow to its high-tech quiver. The was briefly staged, more than 220 ar- 100-plus-year-old Switzerlandrests were made, and life quickly re- based pharma is planning to open a big turned to normal. Last week, that new research facility in the city’s budmeant focusing not on OWS’ 99% ding life sciences and biotech center but on Mitt Romney’s 47%—the por- due east of Bellevue Hospital along tion of Americans he said were look- the East River. Eventually, it will ing to the feds for help. ... BOOK BIZ house 200 men and women in white. ALIVE AND WELL. A trio of smart Not to keep score, but Roche currentguys—Barry Diller of IAC/InterAc- ly does its thing in New Jersey. tiveCorp,a prominent BRIGHTER SKY FOR film and theater proMURDOCH. News ducer, and a publishCorp. got a break ing veteran—are dowhen U.K. regulators ing something odd. ruled the company’s —Mets manager Terry They are jumping into lucrative pay-TV arm, Collins, after his team’s the book business, or British Sky Broad16-1 loss Thursday, when its digital equivalent. casting, to be “fit” to asked whether his players The trio is linking up keep its broadcasting have given up with a Brooklynlicense. After a 15based e-publishing outfit to form a month run of probes into phone hacknew company called Brightline to turn ing by a News Corp. tabloid, not to out e-books. ... PHONE PACT. After 16 mention arrests, the move had been in months of talks and one two-week doubt. Regulators did say, however, strike, Verizon Communications Inc. that they found the conduct of CEO and unions representing 45,000 work- Rupert Murdoch’s son James, who ers reached a tentative deal that headed the U.K.newspaper division at nudges both sides down an increas- the time, to be “difficult to compreingly well-traveled road away from de- hend and ill-judged,” but the worst fined-benefit plans. Current workers seems to be over at the company’s will hold onto their pension plan while Sixth Avenue HQ. There, officials future hires will have to make do with said the son will soon rise to oversee
‘You have to ask them’
HOORAY! THE NETS’ new home, the $1B Barclays Center, had its ribbon cut. Team partowner Jay-Z will personally open the arena with a concert Sept. 28.
$6.46 City and state taxes on a pack of
OY VEY! HYBRIDS be damned. NYC says all new cabs must be Nissan’s conventionally powered “Taxi of Tomorrow.”
the Fox Networks Group. ... CHECKING INTO THE BRONX. Visitors to the Big Apple will be able to stay in the lap of luxury in the Bronx. Yes, you heard that right. The borough is getting its first luxury hotel—a Marriott, under its Residence Inn brand. The 125room extended-stay property,based in the Metro Center Atrium mixed-use project in Pelham Bay,is slated to open in 2014. —lauren elkies
The Marrow will be chef Harold Dieterle’s third venture. That fact was misstated in the Sept. 17 “Season of eateries.” Ray Cullom is the executive director of the Queens Theatre. His surname was misstated in the Sept. 17 “Biz eyes kick from soccer.” vol. xxviii, no. 39, september 24, 2012—Crain’s New York Business (issn 8756-789x) is published weekly, except for double issues the weeks of July Fourth, Labor Day and Christmas, by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals postage paid at New York, N.Y., and additional mailing offices. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. 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 2012 by Crain Communications Inc. All rights reserved.
2 | Crain’s New York Business | September 24, 2012
STORIES TO WATCH THIS WEEK Sept. 24: Trade group New York City Hospitality Alliance has its launch party.
Sept. 25: Cory Booker and David Paterson discuss prison reform at Stroock event.
Sept. 27: Public scoping meeting held on east midtown rezoning proposal.
Sept. 28: City Council holds hearings on new applied sciences campus’s impact.
IN THE BOROUGHS QUEENS
Bavaria comes to the Bowery
Unsung hospital roars back
Hotelier to open LES brewpub with famed Munich brand Paulaner BY LISA FICKENSCHER
Locals dig deep for big new addition at Bayside’s St. Mary’s
What do Zip City, Typhoon, A.J. Gordon’s and Commonwealth have in common? They were all part of the frothy frenzy in the 1990s when brewpubs—eateries that made beer on their premises—were opening all over the city.They’re also all defunct. Making a bid to revitalize the industry is an unlikely player, Rudolf Tauscher, the former general manager of the five-star Mandarin Oriental New York hotel, where a $19 glass of champagne is the top-selling libation. Turns out the hotelier has deep roots in the hops and barley business, dating back to the 1800s when his family bought a brewery in Bavaria, Germany, which is still in operation. Now he is parlaying his family’s legacy into his own brewery on the Lower East Side at 265 and 267 Bowery, where he inked a 15year lease. The 4,000-square-foot establishment in a former restaurant-supply company space is slated to open early next year. There are plenty of reasons why the others failed. For one, “they found that the real estate is so expensive that it doesn’t make sense to make beer on the premises,” said Brooklyn Brewery co-founder Steve Hindy.“You want to be selling food and drink on every square inch of the space.” What’s more, the beer they produced was not very good. Just a handful of such local businesses remain, including Chelsea Brewing Co., which opened in the ’90s, and Mario Batali’s newer Eataly Birreria. Not even Heartland Brewery makes beer in its restaurants anymore. “I didn’t want
BY SHANE DIXON KAVANAUGH
economy and near-record-low borrowing costs, the average price of a Manhattan office building hit $661 a square foot in the first half of the year, up 33% from year-earlier levels and 50% from the low point in 2009, according to Cushman & Wakefield Inc. Similarly, the number of sales rose 21%, to 25, in the first half of 2012, five times the total of the first half of 2009. The fate of these two buildings, however, will provide the first 10figure litmus test for the market in more than a year—plumbing the depths of investors’ desire for truly giant buildings, of which New York has plenty.Worldwide Plaza, at 825 Eighth Ave., is 1.9 million square feet, while 11 Madison Ave. is a hulking 2.2 million square feet.
It’s no Mount Sinai Medical Center or New York-Presbyterian Hospital. In fact, few people have ever heard of St. Mary’s Healthcare System for Children. But for 60 years, the hospital in Bayside, Queens, has quietly been treating some of the city’s most vulnerable pediatric patients: burn victims from the Bronx, premature babies from Staten Island and countless others. “We’ve wrapped our arms around New York’s underdogs,” said Thomas Kissane, a partner with consulting firm CCS and a longtime trustee for St. Mary’s. “In many ways, we’ve been underdogs, too.” Now, after a five-year, $114 million struggle, that is about to change. This week, the nonprofit will open a 90,000-squarefoot addition, NUMBER OF plans for which pediatric patients triumphed over a St. Mary’s serves series of daunt- each day ing setbacks. Among them were the dawn of YEAR OF the Great Reces- St. Mary’s sion just as founding by fundraising was Episcopal nuns in getting under- Manhattan way, the unexpected death of longtime Chief ANNUAL Executive Bur- operating budget ton Grebin and a lawsuit by a group of area residents seeking to block the expansion. Through it all, the hospital’s supporters in the predominantly upper-middle-class neighborhood and beyond plowed ahead. “The magnitude of support has been miraculous,” said Jeffrey Frerichs, who became St. Mary’s president two years ago. Since the hospital launched its fundraising campaign in 2008, scores of businesses big and small have helped drum up more than $33 million for the new patient pavilion—nearly three times what administrators had expected to raise from private sources. Founded in 1872 by Episcopal nuns on the West Side of Manhattan, St. Mary’s decamped for its current eight-acre parcel overlooking Little Neck Bay in the 1950s.There, it grew to become one of only a
See REAL ESTATE on Page 23
See UNSUNG on Page 12
See BAVARIA on Page 23
BEER HERE: Former Mandarin Oriental GM Rudolf Tauscher has roots in the hops business. His family runs a brewery in Bavaria.
Real estate’s 10-figure te$t For sale: two huge $1.5 billion towers, but fates uncertain
HOW TWO BUILDINGS STACK UP
BY THERESA AGOVINO Last week, just days before final bids were due on Worldwide Plaza, a mega-office tower whose owner is seeking $1.5 billion, would-be bidders got a jolt. Another giant property, this one down on Madison Square, also officially hit the market—bearing roughly the same stratospheric price tag. Both owners are hoping to cash in on investors’ recent voracious appetite for Manhattan office towers. Stoked by the city’s relatively strong
11 MADISON AVE.
Asking price: $1.5 billion
Asking price: $1.5 billion
Square feet: 1.9 million
Square feet: 2.2 million
Number of stories: 47
Number of stories: 30
Year built: 1989
Year built: 1932
September 24, 2012 | Crain’s New York Business | 3
IN THE A global digital biz title debuts MARKETS Well-heeled global business professionals, who have no shortage of publications tailored to their needs, can add another title to their iPad reading list. On Sept. 24, Atlantic Media Co. debuts the digital-only Quartz, which has been the most talked-about business publication launch since Condé Nast Portfolio began losing millions in 2007. Fortunately for Atlantic Media, and in contrast to Portfolio, nobody has been talking about the costs. The name, though, has furrowed some brows. It was chosen because the mineral is found worldwide and is linked to tectonic activity. Quartz has drawn attention with high-profile hires from The Wall Street Journal, a “mobile-first and
The most hyped launch since Portfolio fizzled ecosphere. In 2010, fueled by digital spinoffs, the company’s 155-yearold flagship, The Atlantic magazine, turned a profit for the first time in years. Atlantic Media, which also owns National Journal and Government Executive, now derives 60% of its advertising revenue from the Web. Company executives view the shift to a largely digital publishing
company as only the first chapter in its transformation.The next one begins with Quartz and the 25 editorial employees working out of its SoHo headquarters. (A half-dozen reporters are based overseas.) “Chapter two [involves] taking those skills and creating new digital brands that are going to have no legacy assets, no traditional media associations, but will be the disruptor brands of the future,” said Atlantic Media President Justin Smith, who has led the changes over the past five years with owner David Bradley. “Quartz is our first major initiative in this area.” Mr. Smith has set his sights on what he calls the Economist-FT duopoly on the growing global business audience. Both publications are ripe for disruption, he believes, because their digital models—which include online pay walls and subscription tablet applications—are aimed at protecting their print revenue. Quartz, by contrast, has been designed from the ground up as a 100% See QUARTZ on Page 23
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4 | Crain’s New York Business | September 24, 2012
by Aaron Elstein
BY MATTHEW FLAMM
tablet-focused” publishing approach, and its ambition to take on global business giants The Economist and the Financial Times. The Manhattan-based operation is also building on the momentum of its Washington, D.C., parent company, which has become the Little Engine That Could of the media
From its SoHo office Atlantic Media’s Quartz takes aim at FT, Economist
Financial trial of the century? Nah
t’s no trial of the century. It shouldn’t even be the seminal case of the financial crisis, although given the dearth of indictments the past few years, it might have to be. In any case, folks eager to see a Wall Street chief face a jury will have to make do with the trial slated to start next week of former Reserve Management Co. Chairman Bruce Bent (above left) and his son, Reserve President Bruce Bent II.
To jog your memory, the elder Mr. Bent ran the company, whose flagship service was a $62 billion money-market fund called the Reserve Primary Fund. Alas, Reserve “broke the buck” after Lehman Brothers filed for bankruptcy. The fund’s net asset value fell below the sacrosanct $1 a share because it held $785 million of Lehman debt that immediately had to be written down to zero. That unleashed a full-scale panic throughout the financial world, forcing the U.S. government to guarantee all of the $3.7 trillion parked in money-market funds. It was arguably the darkest hour of the financial crisis. In 2009, the government charged Mr. Bent and his son with hiding key information from customers and board members in the hours after the Lehman bankruptcy to stem a flood of redemptions. The feds alleged the Bents assured investors they would do whatever it took to prevent a breaking of the buck when they knowingly lacked the means to do so. The Bents responded through their lawyers that their actions have to be considered in the context of the Lehman catastrophe, and that the government is pursuing a textbook case of “fraud by hindsight.”The father and son contend they were as blindsided as anyone by the awful consequences of Lehman’s shocking failure, and claim that the government was “secretly fueling the run”at Reserve by leaking information
about its problems to Bloomberg News reporters before the company acknowledged the buck had been broken.The government doesn’t admit to tipping off the press, but said “even if ” it did alert a mutual-fund industry trade group,it did so for the purposes of “telling the truth to the investing public,” and after the events that led to the buck-breaking had taken place. In the end, jurors will be asked to decide what was really going on in the Bents’ heads as their firm got caught in the post-Lehman turmoil. The elder Mr. Bent has testified that on the morning of Lehman’s collapse, contrary to the advice of staff, he insisted the fallen investment bank would somehow make at least partially good on its obligations—at least enough so that Reserve wouldn’t break the buck. He told investigators his feeling was based on “47 years of being in the investment business.” Was the Wall Street veteran misleading those around him when he said that? Or was he just stupid? And is this really the biggest fish the government could catch out of the entire financial-crisis pond? However the matter is decided, the Bents will not face jail time. That’s because the trial stems from a civil lawsuit brought by the Securities and Exchange Commission, not a criminal indictment from the Justice Department. Should the Bents lose in court, the worst they face is a fine. 䡲
RAISING THE ROOF Year-todate gain in the S&P Supercomposite Homebuilding Index as home sales and home construction both show signs of turning around.
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by Andrew J. Hawkins and Chris Bragg
DEALS Billionaires at the ballot box
ew York may be a deeply Democratic town, but among its 20 wealthiest residents, there are likely more votes for Mitt Romney than for Barack Obama. A Crain’s analysis of Forbes’ new list of America’s 400 richest people shows that among the city’s 20 most affluent residents (all men), only four are registered Democrats. Seven are Republicans, according to Board of Elections records, while another seven have no party affiliation. Crain’s could not locate two of New York’s richest in city voter records: Rupert Murdoch (above left), an Australian who was naturalized in the U.S. in 1985, and Richard LeFrak, chief executive of the LeFrak Organization. The four Democrats among the city’s 20 richest are developers Stephen Ross (above right) and Sheldon Solow and publishing heirs Robert and Daniel Ziff. Most of the billionaires vote regularly, but not all of them. Fashion designer Ralph Lauren, an independent, has cast ballots in New York only three times since 1998.
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The richest New Yorker on the list, David Koch, is well known for lavish political spending on conservative candidates and causes, as is his brother Charles, of Kansas. Mr. Koch is registered as a Republican on the Upper West Side. Estée Lauder heirs Leonard and Ronald Lauder, who were 43rd and 118th on the Forbes list, respectively, are also affiliated with the GOP. Ronald played a major role in helping independent Mayor Michael Bloomberg (a former Republican and Democrat who is 10th on the Forbes list) gain a third term in office by agreeing not to oppose a term-limits extension. Mr. Lauder had spent more than $4 million on referendums to enact an eight-year limit. Other city Republicans on the Forbes list were hedge fund manager John Paulson, investor Carl Icahn and Henry Kravis, who cofounded the private equity firm KKR, where he is co-chairman and co-CEO. Messrs. Bloomberg and Lauren are not the only billionaires who have no party affiliation. Others include Ronald Perelman, Samuel Newhouse, Bruce Kovner, Leonard Stern and Leon Black.
Grocer to rival: Got cheddar? Another billionaire, Republican John Catsimatidis, won’t decide until after the November elections whether to run for mayor, but he’s ready to cite one advantage he has over GOP contender George McDonald. “The question is whether he can raise enough money to run a meaningful campaign,” said Mr. Catsimatidis, who runs Gristedes. “It’s not an issue for me.” Mr. McDonald makes in the mid-six figures at the Doe Fund, which he founded in 1985 to provide work, housing and education for people with histories of incarceration, homelessness and substance abuse. John Catsimatidis He said he is aiming to post a big fundraising number in January to show his candidacy is viable, and won’t seek public matching funds. “I believe I will be the only Republican that runs,” Mr. McDonald said, adding that he would be willing to take on a fellow Republican in a primary. 䡲
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The global amount employers spent last year on talentmanagement software Source: Gartner
EXECUTIVE MOVES SALOON SALON: Tommy Guns owner Russell Manley used fixtures from an apothecary to give his salons an old-time feel.
Don Draper’s hair apparent
Tommy Guns salon rides the men’s groom boom ‘Guys want a lot more than a $40 in-and-out dry haircut’
Call it the Don Draper effect. Ten years ago, most guys would have balked at paying $75 for a haircut. But thanks to Mad Men, and popular retailers like J.Crew launching their own men’s stores, gents are paying a lot more attention to how they look. ¶ “Guys want a lot more than a $40 in-and-out dry haircut,” said Russell Manley, who moved his hair salon, Tommy Guns, to the Lower East Side in 2008 after founding his business in London in 1994. ¶ The men’s grooming industry generated $964 million in U.S. department-store sales last year, an 11% rise over 2010. ¶ The trend is paying off handsomely for the 45-year-old Mr. Manley, whose salons have a barbershop feel. Today, 40% of the clients are male, and his company typically generates $1.5 million in annual sales. ¶ The company is doing well enough to expand. Last year, he scooted into Williamsburg, Brooklyn, while retail rents were
still reasonable and opened a second salon. The 1,200-square-foot shop boasts nine hairdresser chairs, with three to be added by the end of the year. Mr. Manley is in talks with a well-known beauty company to manufacture a line of Tommy Guns-branded products, like hair tonics, pomades and shampoos, in mid-2013. ¶ “People don’t feel intimidated when they go into a traditional barbershop—there’s something about it that puts them at ease, and it’s proved popular for us,” said Mr. Manley. ¶ The Englishman got his start in the early 1980s by practicing on his friends, doling out the styles of the era before landing an apprenticeship at a small shop in his home county of Kent in 1984. “I just picked up the clippers and had a go,” he said. “But it got to the point where I realized I should actually learn how to do it rather than just attacking my friends.” —adrianne pasquarelli
Goldman Sachs Group Inc.: Harvey M. Schwartz, 48, was promoted to chief financial officer at the financial services company. He was previously co-head of the firm’s sales and trading division. Tishman Construction Corp.: Daniel P. McQuade, 53, was promoted to chief executive of the construction subsidiary of AECOM. He was previously regional president of New England and the West. Hachette Book Group: Michael Pietsch, 55, joined the publisher as chief executive. He was previously executive vice president of Hachette and publisher at Little Brown and Co. Genesis Media: Mark Yackanich, 36, joined the video advertising solutions company as chief executive. He was previously chief executive of MegaPhone Labs. Andrew Reis, 37, was appointed chairman of the board. He is also a co-founder of the company. Random House Inc.: Barbara Marcus, 61, joined the publishing company as president and publisher of its children’s books division. She was previously a private consultant and strategic innovations adviser. Brown Brothers Harriman & Co.: Michael Kim, 40, joined the financial services company as chief investment officer of its wealth management business. He was previously associate director for private equities and distressed credit strategies at Willett Advisors. Onswipe: Jared Hand, 37, joined the publishing technology company as chief revenue officer, a newly created position. He was previously vice president of sales at Jumptap. Rich Bloom, 39, joined as chief operating officer, a newly created position. He was previously vice president, video, at AOL. Thrillist Media Group: Keith Blanchard, 46, joined the media company as chief content officer, a newly created position. He was previously chief content officer at Story Worldwide. Gene Newman, 39, joined as general manager of Thrillist.com, a newly created position. He was previously digital editorial director at Maxim. Maxim: Dan Bova, 38, was promoted to chief content officer of the magazine. He was previously editor in chief. Kellwood Co.: Rebecca Damavandi, 40, joins the apparel manufacturer and marketing company as group president of global business development. She was previously an independent global apparel consultant. Morrison Brown Argiz & Farra: Andrew Siskin, 48, was promoted to director,
See EXECUTIVE MOVES on Page 8
September 24, 2012 | Crain’s New York Business | 7
Continued from Page 8
A NEW FOCUS ON SOCIAL MEDIA AT CARNEGIE CORP. WHEN ANDREW CARNEGIE established Carnegie Corp.’s mission to “promote the advancement and diffusion of knowledge and understanding,” he wasn’t talking social media. But that’s precisely what Deanna Lee, 49, wants to use to give the grant-making foundation a fresh face. Carnegie’s new chief communications and digital strategies officer expects to reimagine how audiences connect with the iconic nonprofit’s events and programs—from supporting urban education to strengthening pluralistic democracy internationally, to endorsing nuclear nonproliferation. Ms. Lee wants to focus on social media and new ways to circulate original content generated by grantees and the organization. “Communications is two-way now,” said Ms. Lee, a former broadcast journalist and communications executive at the Asia Society. “We should not want people to just take in what we are putting out, but engage with it.” As a New York Public Library communications executive, Ms. Lee supervised the creation of the sophisticated e-library iPad application Biblion. She will be responsible for upgrading Carnegie’s website experience and building online communities and new distribution channels, said Chief Administrative Officer Ellen Bloom. —EVA SAVIANO
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8 | Crain’s New York Business | September 24, 2012
tax and accounting department, at the accounting firm. He was previously senior manager, tax and accounting department. Steven Blumenthal, 58, was promoted to principal, tax and accounting department. He was previously director, tax and accounting department. BlackBook magazine: Adam Brent Houghtaling, 37, joined as editor in chief and brand director. He was previously vice president and digital content director at Martha Stewart Living Omnimedia. Hill+Knowlton Strategies: Amy Rosenberg, 41, joined the communications consultant as executive vice president and U.S. director of media relations. She was previously managing director at Burson-Marsteller. Betaworks: Andrew McLaughlin, 42, joined the technology company as entrepreneur in residence. He was previously vice president of Tumblr. Paul Murphy, 33, joined as entrepreneur in residence. He was previously chief operating officer of Aviary. Time Inc.: Todd Larsen, 46, joined the publisher as executive vice president and group president, news and sports. He was previously president at Dow Jones & Co. Lauren Newman, 33, joined as corporate sales director of the branded solutions team. She was previously advertising director at Fresh Home magazine. Tykoon: Aron Levinson, 37, joined the app company as senior vice president of sales and business development. He was previously vice president of sponsorship sales at Recyclebank. Digitas: Doug Speidel, 57, joined the digital integrated brand agency as senior vice president, creative. He was previously senior vice president and executive creative director at MRM Worldwide. Fritz Desir, 41, joined as vice president and group director, head of experience design, a newly created position. He previously led the experience and design practice at Tribal DDB. OurStage.com: Scott Nelson, 36, joined the online music company as senior vice president of marketing. He was previously director of brand marketing at Svedka Vodka. Cassidy Turley: Judd McArthur, 48, joined the commercial real estate firm as senior vice president. He was previously senior vice president at Cresa. Brooklyn Nets/ Barclays Center: Jeff Gewirtz, 43, was promoted to executive vice president of business affairs. He will continue in his role as chief legal officer. He was previously executive vice president. adtivity by appssavvy: Jeffrey Yang, 30, joined the activity advertising technology company as analytics architect. He was previously vice president of risk technology at SAC Capital Advisors. Platinum Maintenance Services Corp.: Marc Antonucci, 39, joined the metal, marble, wood, stone and façade maintenance and restoration company as vice president, sales and operations. He was previously president and chief executive at Specialty Flooring Systems Inc. —eva saviano EXECUTIVE PROMOTIONS The fastest way to get an announcement into Crain’s is to submit online. Fill out the form at www.crainsnewyork.com/section/ executive_moves. The Executive Moves column is also available online.
Demand rises for experts with the know-how to nurture prized specimens BY MAGGIE OVERFELT
undreds of years old, the English elm that towers roughly 100 feet above the northwest corner of Manhattan’s Washington Square Park has a canopy that’s been thinned since spring, when a crew from Urban Arborists took saws to some of its higher limbs to protect pedestrians below. “We look at things like, How hollow is too hollow?” said Bill Logan, founder of the profitable, 14-employee Brooklyn firm that won the bid to assess the tree. This surgical work taps into new initiatives transpiring today in many U.S. cities: taking better care of older trees, which, according to a recent study in the journal Urban Forestry and Urban Greening, are declining significantly. From 2004 to 2009 in New York City, development contributed to the loss of 1.2% of tree cover, or more than 2,000 acres’ worth of trees and shrubs. “Instead of having a million-tree planting program, cities should also have a million-tree preservation plan,” said David Nowak, author of the report and a project leader with the U.S. Forest SerTrees lost vice. “As you lose a annually in mature tree, it takes urban areas in 60 to 70 small trees the U.S. Source: U.S. Forest to offset the loss in Service terms of canopy.” Recognizing that established trees offer more health and environmental benefits, “cities are seeing a value in finding a way to keep older trees going,” said Jim Skiera, executive director of the International Society of Arboriculture.
$2M budget hike That’s certainly the case in New York, where until recently, the spotlight fell on the city’s campaign to plant 1 million new trees throughout the five boroughs. But a recent spate of felled tree limbs—a few of which have killed passersby—has cast new light on the city’s aging trees,prompting lawmakers to allot an extra $2 million to the Parks Department’s budget specifically for tree pruning. “There’s always a need for someone to care for older trees before they become sick and start falling about,” said Tchukki Andersen, staff arborist at the Tree Care Industry Association. The increase in the Parks Department’s budget will likely mean an uptick in jobs caring for the city’s “great trees,” which require a specif-
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ic skill set that only a few tree-care companies have.According to Bram Gunther, the Parks Department’s chief of forestry, horticulture and natural resources,just three firms,all larger than Urban Arborists, have bid alongside it on such projects: Asplundh Tree Expert Co., Bartlett Tree Experts and the Davey Tree Expert Co. “These jobs aren’t lucrative, but they provide fill-in work,”said Kevin Kenney, local manager and arborist
representative at Bartlett. Despite increasing municipal work, arborists have to diversify to succeed. Mr. Logan, who says company revenue falls between $1 million and $2 million annually, relies mostly on private projects.
Dirty jobs Mr. Logan, who helped found Garden Design magazine, also does some woodland landscape design. He teaches pruning techniques to
the public at the Botanical Garden in the Bronx and private classes for city-employed foresters. He’s also written a series of books, one of which was made into the film Dirt! The Movie, which premiered at the Sundance Film Festival in 2009. His latest project is researching soils that would help the city’s trees escape a common killer: compacted dirt. “What keeps us interested are the problems that no one knows the answers to,” he said. 䡲
Saving trees grows biz opportunities
BRANCHING OUT: Arborist Bill Logan has diversified his business to serve varied clients.
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September 24, 2012 | Crain’s New York Business | 9
An easy immigration fix
ew York City has done the hard part: With decades of effort and investment, its private and public sectors have created a vibrant, safe metropolis that attracts businesspeople and talented students from every corner of the globe. Then Washington kicks them out. The reason is that Congress has not done the easy part by passing legislation to allow companies to employ more skilled foreigners and to keep them in the U.S. longer. New York would be the biggest beneficiary of such a law because its tech companies are eager to grow but are handcuffed by a shortage of qualified American workers. City-based Tumblr, for instance, has been waiting for nine months for visas to bring senior employees stateside. Startup Monaeo’s overseas contractors want to move to New York but can’t until at least October 2013 because of the backlog. There are countless examples like these. Yet Congress doesn’t act—not because the solution is complicated or controversial. Quite the opposite, in fact: This is the lowhanging fruit of immigration reform. But some advocates fear that if work-visa reforms are passed piecemeal, Congress won’t compromise on the thornier issues, such as how to treat undocumented visitors. This all-or-nothing approach has failed. But an agreement on work visas that breaks the stalemate in Washington might facilitate future agreements. At the very least, it would boost an economy that desperately needs it.
CRAIN’S ONLINE POLL
NEW YORK BUSINESS editor in chief Rance Crain publisher, vp Jill R. Kaplan
New York Sen. Charles Schumer is pushing a bill called the BRAINS Act that would make 100,000 green cards available over two years for foreign-born students with advanced degrees in science, technology, engineering and math. Currently, these talented folks are being scooped up by companies in places like Singapore (which offers residency to any immigrant with a doctorate) and London, or they are returning to their native countries after their student visas expire. Some students are not coming to U.S. schools in the first place because they see little hope of being allowed to accept a job here. Only 145,000 permanent-resident applications based on employment are being approved annually. There’s a similar bill in the House, but it would cut other visa targets to ensure no net increase in immigration. That’s a poison pill that should be removed in conference committee if both bills pass their respective chambers. The lame-duck session after the election presents a great opportunity to get this done, but there’s no reason the next Congress couldn’t also do it. The public prefers collaboration to confrontation by its representatives, and its top priority is adding jobs. This is an easy way to do it.
It’s past time to let businesses import the talent they need
NOT RICH OR POOR ENOUGH FOR NYC RENTS
DO MITT ROMNEY’S ‘47%’ COMMENTS KILL HIS CAMPAIGN? Yes. The guy is so obviously out of touch with average Americans, there’s no way he’ll be trusted to be president. No. To win, he only needs to reach the 10% of voters who are up for grabs—and they could very well agree with him. Date of poll: Sept. 18
FOR THIS WEEK’S QUESTIONS: Go to www.crainsnewyork.com/poll to have your say.
10 | Crain’s New York Business | September 24, 2012
This is why the middle class is being forced out: The rich can afford million-dollar condos, and those ultraluxury buildings got tax breaks because the same developers built lowincome housing as a giveback (“High rents hitting middleclass New Yorkers,” Crains NewYork.com). That arrangement is having negative consequences on those in the middle—they’re too poor for luxury condos but too rich for low-income housing. —randi chisholm What is to blame are the “emergency” price controls that have been in place for 40 years. All they do is give incentives to landlords to turn buildings into condos and co-ops and to builders not to construct “affordable” rental units. End rent control. End rent stabilization. Liberalize zoning laws. Incentivize the building
Nothing in real estate goes up forever. The current high rents will come down due to circumstances beyond the control of landlords. It could be another financial dip, a second recession, economic forces beyond anyone’s control or, worst of all (hopefully not), some form of terrorist attack, all of which will cause a significant relocation by those living in the city. Real estate is a cyclical business, but for those living in the city now and paying these absurd rents, it’s a choice they have made. I have always said as long as people are willing to pay, the landlords will charge whatever they can. If there
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of affordable rental units. That is what is needed. —dr. louis brusco jr.
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Crushed in the middle
EDITORIAL editor Glenn Coleman deputy managing editors Valerie Block, Erik Ipsen assistant managing editors Erik Engquist, Jeremy Smerd senior producer, news Elisabeth Butler Cordova news producer Lauren Elkies contributing editor Elaine Pofeldt columnists Greg David, Alair Townsend crain’s health pulse editor Barbara Benson senior reporters Theresa Agovino, Aaron Elstein, Lisa Fickenscher, Matthew Flamm, Miriam Kreinin Souccar reporters Amanda Fung, Andrew J. Hawkins, Adrianne Pasquarelli contributing reporter Chris Bragg web reporter, producer Tania Karas art director Steven Krupinski deputy art director Carolyn McClain staff photographer Buck Ennis copy desk chief Steve Noveck copy editor Thaddeus Rutkowski data editor Suzanne Panara assistant data editor Emily Laermer researchers Eva Saviano, Amy Stern interns Ali Elkin, Emily Lundeen
were more resistance, I think rents would be lower. So who really is to blame? —john f. nahas
FERRY NICE SERVICE Re your poll “Should NYC keep the East River Ferry afloat?”: Keep the ferry! I just moved to Williamsburg and love my new commute. I’ve been subway-free for three weeks, and I would love to stay that way. —lindsay allen
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The candidates’ 47% solution
itt Romney is most likely right: About half of New Yorkers pay no federal income tax. He’s right in another way.This presidential election is in part about the amount the country will tax its wealthiest citizens and what kind of safety net should be in place for everyone else. Here’s how those choices play out in New York. Taxes. About 40% of New York City residents make less than
$17,000 and pay no federal income tax. Another quarter make less than $70,000, and some of them also face no federal tax liability. Only 15% of New Yorkers make more than $217,000. These are the people who will be hit with steep tax hikes if President Obama is reelected and has his way. While this is probably the highest figure among any city in the nation, it is still a decided minority. Medicaid. According to the latest figures, 5,089,162 state residents are enrolled in Medicaid.That’s 26% of the population, the highest percentage in the country.The state’s Medicaid budget for this year is $54 billion,about half of which comes from the feds. New York spends more money on Medicaid than any other state—and by a lot. If Mr. Romney wins and has his way, states will get block grants for Medicaid. This will be very bad
GREG DAVID NY: TAXES AND BENEFITS 50% City residents who pay no U.S. income tax 15% City residents who face big tax hikes under Obama 26% State residents who are on Medicaid 17% State residents who are on food stamps 49th NYS rank in jobless pay
MTA finances: a looming train wreck
he financial condition of the Metropolitan Transportation Authority is again a hot topic.In July,the MTA board announced the restoration of some bus service and postponement of the previously budgeted 7.5% fare increase, thanks to an unexpected cash surplus of $47 million in 2012. In August, a state court judge invalidated the payroll mobility tax and other revenue sources, threatening the MTA with the loss of $1.8 billion annually in revenue if the decision is sustained. Then, this month, MTA Chairman and Chief Executive Joseph Lhota told a Crain’s Breakfast Forum that the postponed fare increases could include elimination of discounts for multiride cards. Although some might get mixed signals from these developments, nobody should doubt that the MTA is in serious financial trouble. Everyone—commuters, MTA employees, city and suburban residents, and elected officials—must face reality and contribute in some way to a longterm solution to the MTA’s fiscal problems. And periodic, predictable fare increases along with continued belt-tightening, including a trimmed
service schedule, are unavoidable elements of a sensible solution. The “surplus”announced for 2012 is based on an accounting approach that focuses only on immediate cash needs. By this calculation, the MTA has a surplus this year because its projected cash receipts are modestly ahead of projections made at the start of the year. But current-year obligations to be paid after Dec. 31 and the need to keep up with capital repair and replacement needs, known as depreciation, are left out. Using the more appropriate accounting principles followed in the MTA’s audited financial statements, the agency has an estimated deficit of $2.7 billion in the current year and
news in New York because the Romney plan is sure to reduce the federal contribution in the future, if not immediately. Obamacare. The president’s health care reforms could provide health coverage to another 1.24 million New Yorkers, at least according to a study by the Community Service Society. Half would wind up on Medicaid as that program is expanded (meaning the total number would approach 6 million), and half would get coverage from the new insurance exchange. Some people think the CSS inflated the numbers. Also, the Supreme Court overturned the Medicaid provisions of the health care law, so New York doesn’t have to expand eligibility if it doesn’t want to. Mr. Romney would work to repeal the health care law, and no one knows what, if anything, he would pass to replace it. Unemployment insurance. About 400,000 people are getting unemployment benefits in New York, which have lasted for as long as 99 weeks during the Great Recession. However, New York is the most parsimonious Northeast state when it comes to this benefit, with a weekly maximum of about $400. A year ago, a study called New York’s jobless benefits the second-worst in the country. Food stamps. About 17% of residents get food assistance, ranking the state 19th highest in the country. The bottom line: New York has a good safety net but hardly the best in the nation. Should it be better and, if so, at the expense of higher rates for some? Should it be curtailed? In large part,that’s what you are voting about. faces even larger deficits in the next four years.Indeed,it has had a surplus only once in the past 20 years (in 1996, after a large fare increase). Deficits exceeded $2.5 billion annually from 2008 to 2011, sums that are equal to at least 16% of annual expenses, and they continue to be large despite enactment in 2009 of the now-threatened payroll tax. The MTA needs the revenue from the planned 2013 and 2015 fare hikes; delaying them, as announced, from January to March will worsen the 2013 deficit by $67 million and the 2015 deficit by $69 million, for a combined loss of $136 million.While we all may welcome service restorations, the $29.5 million going for this purpose should be better justified. The 2010 service cuts were selected based on analysis of ridership patterns and services that were little used. Overall bus ridership has not been growing enough to warrant major service restorations; instead, adjustments can be made to deploy buses in accord with shifting usage patterns. It’s only natural to complain about taxes, fare hikes and service cuts, but the alternatives can be far worse.The economically devastating consequences of a deteriorating transit system loom if all New Yorkers do not acknowledge our collective responsibility for the system on which our jobs and family incomes depend. Carol Kellermann is president of the Citizens Budget Commission.
Crain’s Arts & Culture Breakfast:
How To Stand Out In A Crowd
Join Crain’s New York Business at our Arts & Culture Breakfast as we will explore a critically important issue facing arts groups across the city: How To Stand Out In The Crowd—A candid discussion on how small and mid-size arts institutions can compete for audiences and donors. New York’s major arts institutions typically have vast resources to survive a downturn. The small to mid-sized organizations are hardest hit. Crain’s will bring in the experts on both sides—the fundraisers and the funders—to discuss the challenges institutions face while trying to grab the public’s and donor’s attention and the techniques that have brought them success.
Kate D. Levin
DATE: Tuesday, October 9, 2012
PLACE: Con Edison Conference Center, 4 Irving Place at 14th Street
TIME: Networking Breakfast: 8:30AM - 9:00AM Program*: 9:00AM - 10:30AM *Program extended.
Luis A. Ubiñas
COST TO ATTEND:
Patricia Cruz Executive Director, Harlem Stage / Aaron Davis Hall, Inc.
Tom Finkelpearl Executive Director, Queens Museum of Art
Kate D. Levin Commissioner, New York City Department of Cultural Affairs
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Executive Director, Paul Taylor Dance Company You must be pre-registered to attend this event. No refunds permitted.
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IN THE BOROUGHS QUEENS
Unsung hospital roars back Continued from Page 3
handful of institutions nationwide to provide specialized care and intensive rehabilitation for children with head traumas, eating disorders and other life-limiting conditions. Under Dr. Grebin’s stewardship, St. Mary’s also built the nation’s first pediatric palliative-care unit and the city’s first traumatic brain-injury and coma recovery program for children. It also established home-care services for children with HIV/AIDS. In the process, St. Mary’s grew from a 40-bed nursing home into a $100 million health care system employing some 1,200 people. But in recent years, it has also become woefully overcrowded with strollers, wheelchairs and cribs lining some of the narrow, brown-tiled hallways because the 97-bed hospital had simply run out of space. The torrent of cash to expand the facility has come from a wide variety of sources and denominations. In November, for example, Pat Di Filipo, an executive vice president at Turner Construction, spearheaded a $1.2 million donation that pushed the hospital over the $30 million mark. And while a host of wellheeled executives has stepped up to cut six- and seven-figure checks, money has also poured into St.
OVERCOMING SETBACKS: St. Mary’s is opening a 90,000-square-foot addition.
Mary’s in two- to four-figure denominations from owners of neighborhood tanning salons, catering halls and plumbing-supply companies.
Feeling a connection Salvatore Bacarella, founder of Flushing-based landscaping company Garden Works, has drawn thousands of northeast Queens residents to support St. Mary’s by soliciting funds at his annual Halloween festival at nearby Bowne Park. Similarly, a June outing to a Mets game at Citi Field organized by the Knights of Columbus Council in Queens attracted some 1,600 people and generated thousands of dollars in dona-
tions.And despite the housing crash, members of the area’s Long Island Board of Realtors banded together to raise $60,000 over the past five years. “We’re a bunch of independent contractors,” said Carlos Diaz, the group’s treasurer and an agent with Prudential Douglas Elliman Real Estate. “But we all felt connected to this place. We were all moved by the kids and the hospital’s mission.” To chip in, Mr. Diaz helped pack 300 home inspectors, title agents, underwriters and even exterminators into Douglaston Manor last year for a St. Mary’s fundraiser.This year, Mr. Diaz hopes even more will attend the event. Just days away from the ribboncutting ceremony, Bayside’s leading underdog is already gearing up for its next battle. This time, it faces pending cutbacks in health care funding—nearly all the patients the facility serves are Medicaid recipients. “The old days of campaigning for a single project are over,” said Jan Mittan, a senior vice president for St. Mary’s. “You can’t take a break anymore.” Nonetheless, she insists she’s optimistic.“If you have a road map and you’re focused, you will be successful—even in the worst of times.” 䡲
FROM AROUND THE CITY MANHATTAN
Battery powers seating search As part of an 18-month renovation of Manhattan’s southernmost park space, the Battery Conservancy has launched a design competition to bring movable chairs to the Battery Green. As entrants hone their chair designs in advance of the Oct. 30 deadline, construction on the park will get unNUMBER OF derway. FINALISTS to be As it is, Batnamed in tery Park offers January, with the its 6 million viswinner to be tapped in the itors each year summer of 2013 ribbons of classic World’s Fairstyle benches with wooden slats bolted into concrete supports along the green space’s winding asphalt walkways. “Movable chairs are a way to make people feel [empowered],” said Warrie Price, president of the Battery Conservancy, which maintains 25 acres of Battery Park’s land,
MAY THE BEST SEAT WIN: Contest poster
hosts art and dance festivals and oversees its use as a starting point for many races and walk-a-thons. “Now, more than ever, downtown needs an identifiable place to gather, to come together as a community,” said Ms. Price. A five-member jury of professional designers, curators and critics will pick 50 chair finalists in January. Those chairs will be pictured on a banner affixed to the construction fence in April. The winner will be picked from several prototypes at the end of next summer and placed in the park in the spring of 2014. —cara eisenpress
powerhouse magazines out there,” said Publisher Larry Burstein, who has been at New York since 2003. “That’s broadened the scope and the reach of the magazine.”
has been stagnant for years, circulation revenue has actually grown as a result of subscription prices having almost doubled since 2005. And they say that print ad revenue is up over last year, thanks to higher page rates. More important, ad revenue at NYMag.com is on track to grow 26% this year, following 20% growth in 2011. And The Cut, just a month old, is a hit with marketers. “You see advertisers like Bergdorf Goodman and Longchamp,” said Jack Bamberger, president of North America for digital at media buying agency MEC, which is using The Cut for Macy’s.“We like being within that company.” 䡲
New York magazine In addition, the magazine and website have racked up more National Magazine Awards since Mr. Moss’ 2004 arrival than any other title during the same period. The finishing touch has been an opportunistic approach to publishing, whether it’s in print or online. “We saw that we weren’t just publishing a magazine, that we had a certain voice and way of looking at the world that could find expression in different products,” Mr. Moss said. “Some would be distributed in print form and some digitally.” The editor in chief has gotten plenty of support from an A-list staff, including online Editorial Director Ben Williams, but veterans of the magazine cite Mr. Moss’ vision as key to the company’s success. “He’s got a really good balance between his own intense curiosities and a feel for what can resonate with a larger audience,” said New York Times Magazine Editor in Chief Hugo Lindgren,who was Mr.Moss’ longtime deputy at both the Times Magazine and New York.
Solving the mystery Just as important, the company has solved the most pressing conundrum: how to make money online. Consumer magazines draw only about 5% to 15% of their ad sales from their digital operations, analysts and insiders say. New York’s digital properties, by contrast, account for 40% of the company’s total ad sales.
Driven by online advertising, revenue for the entire operation was up 6% for the first half of 2012 compared with a year earlier, according to Anup Bagaria, CEO of parent company New York Media. That followed an 11% jump for the full year of 2011. Citing the private nature of the company, Mr. Bagaria declined to provide dollar figures or to share percentage-growth figures for profits. New York Media is owned by a family trust and has been overseen by Wasserstein family members since the financier’s death in 2009. Like Mr. Wasserstein, they’ve plowed profits back into the operation and continued to invest, Mr. Bagaria said. In May, the magazine spun off twice-yearly publication New York Design Hunting, which joins the company’s other biannual, New York Weddings.And last month, New York relaunched fashion blog The Cut as a site devoted to women; it joins culture site Vulture and foodie favorite Grub Street. Unlike its competitors, the publication was quick to embrace the Web as a potential profit center. NYMag.com started in 2001 as NYMetro.com—a joint venture of prior owner Primedia, which wanted it for the magazine’s listings, and Cablevision, which promoted programming on its Metro TV channels, including the hit show Full Frontal Fashion. The show’s runway coverage attracted luxury advertisers, proving there was money to be made online.
12 | Crain’s New York Business | September 24, 2012
PUBLISHER Larry Burstein attributes part of New York’s success to its national reach.
Continued from Page 1
And once Mr. Wasserstein bought the site in 2004, the team added features like Grub Street that would prove popular with other advertisers as dollars shifted to digital. This past August, New York Media sites drew 4.8 million unique visitors, according to comScore, providing the scale that large marketers require. And with nearly 80% of its online audience coming from outside New York, the publication gives star political writers Frank Rich and John Heilemann a national platform. The websites’ national profile has also raised awareness among advertisers of what is still in some ways a regional magazine, with a weekly circulation of 400,000 copies. “The brand has a bigger footprint in this changed world than some of the big
Circulation down But New York is still vulnerable to the forces, including the tepid economy, that are wreaking havoc across print media. In line with the industry, single-copy newsstand sales fell 10% in the first half of the year compared with the year-earlier period, according to the Audit Bureau of Circulations. Paid circulation also fell, by 2%. And New York’s ad pages were down 6% this year through Sept. 17, according to Media Industry Newsletter. New York executives point out, however, that although circulation
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INSIDE The List New York area’s largest accounting firms PAGE 17 Tech boom Accounting firms home in on startups that need personal attention PAGE 19
Marriage equality accounts for bigger workloads Firms welcome affluent same-sex couples, but tax laws are complicated BY STEVE WEINSTEIN
See MARRIAGE on Page 14
THOMAS MARINO’s firm, J.H. Cohn, is looking for increased market share as it merges with Reznick Group. buck ennis
As an accountant with many gay clients, Adeptus Partners’ Shelly Goch has seen her business grow as much as 50% since same-sex marriage was legalized in New York state last June. “It’s so much more complicated for same-sex couples,” she said. “Wills, financial planning, estates, trusts—all have to be considered to minimize the tax burden.” Indeed, New York accountants are finding that gay marriage is good for their business. Those who have done their homework to figure out how to handle a two-tiered tax structure—couples who are deemed to be married by state and city reckoning but who are two single people in the eyes of the Internal Revenue Service—are finding a loyal client base, and an affluent one as well. Marketing firm Witeck-Combs Communications estimates that the buying power of gay men and lesbians in the United States this year will exceed $2 trillion. What Harvey Susnick, who heads Berdon’s LGBT practice, called “the strange anomaly of the tremendous discord between state and federal returns” has created essentially a specialty within the city’s accounting profession. Before same-sex marriage, it wasn’t unusual for Mr. Susnick to see an unmarried couple who had been together for 34 years but still
From minnows to marlins Mergers help smaller fish compete in an environment that favors larger firms BY ALEC FOEGE When Thomas Marino, chief executive of top 20 accounting firm J.H. Cohn, was looking to expand the firm’s depth and expertise earlier this year, he and his partners found an opportunity they might not have consid-
ered just five years ago—a merger. “In 2007, everybody was making a lot of money,” said Mr. Marino. “The economic conditions today are different. The market hasn’t grown, so you’re going after market share.” In April, the Roseland, N.J.-based firm announced a merger agreement with Reznick Group, another top 20 firm headquartered in Bethesda, Md. The deal will close at the end of September and create the 11th-largest accounting firm in the country, with $450 million in revenues. CohnReznick will be based in Manhattan. The deal is the largest so far in
of accounting firms in the NY area will experience an ownership change in the next five years Source: RF Resources
2012 in an increasingly steady stream of marriages that can only be described as merger mania, with the New York area at the center of the frenzy. For the past three years, there have been more than 30 mergers in the area each year. Indeed, some 35% of CPA firms in the area will experience a change in ownership over the next five years, according to an analysis by Robert Fligel, president of RF Resources, a Manhattan firm that advises accounting firms about mergers. And it’s not just middle-market firms snatching up the small-fry. See MINNOWS on Page 15
September 24, 2012 | Crain’s New York Business | 13
Marriage equality filed separately. “It was a pretty simple thing,” he said. “They could have done two H&R Block returns.” No more.Today,because the federal Defense of Marriage Act will not allow the IRS to recognize same-sex marriages, that couple may end up preparing a joint state return, separate federal returns, a federal “dummy” return (to figure out data for the state return) and, in some cases, individual state returns. And that’s just the beginning. If the couple jointly owns property, the higher earner can take all of the state deductions on the federal return or move the deductions from one spouse to another, depending on income. But, said Jennifer Hatch, head of Christopher Street Financial, they can’t take advantage of certain federal estate tax benefits relating to property. And if they have children, they also need to consider who should take those deductions, noted Rami Wiluzanski, an independent CPA in Greenwich Village. And those are only the obvious disconnects. There are more than a thousand differences in the rights, benefits and responsibilities of straight versus gay couples, according to Brian Moulton, legal director for the Washington, D.C.-based Human Rights Campaign. The trade-offs of multiple filings may be more trouble than they are worth. Upper West Sider Jonathan
neighbor. “New clients told me their accountants didn’t want to do that type of planning,” said Adeptus’ Ms. Goch. “Couples told me horror stories about how their accountants wouldn’t recognize their relationship or give it adequate respect, or treated it as invisible.” While LGBT clients may be more comfortable with gay tax preparers, many are willing to work with non-gay accountants who understand their requirements. Vincenzo Villamena, a CPA who does “virtual” returns in New York and in Buenos DONALD BUX (LEFT) AND JONATHAN WALLACH are married but still file separate returns. Aires, began his practice with a personal interest that drew him to the performing Pride; or give talks to groups such as preparing such painstaking tax rearts, which led to several gay clients. Out Professionals, the city’s largest turns worth the effort is the sophisThrough word-of-mouth, they now networking meet-up for LGBT ticated financial advice these clients constitute a major part of his prac- professionals. Such gestures as require in areas like estate planning; tice. Queens-based Pace Accounting’s health, disability and life insurance; “I had to do a lot of research,” he offer to donate 20% of the tax- prenuptial and property agreesaid. “But once you understand preparation fee to New York’s ments; and especially retirement these issues, they’re recurring, and LGBT Community Center have planning and investments. During the darkest years of the you can relay answers to clients with helped firms establish bona fides. AIDS crisis, when gay men didn’t confidence.” expect to live long enough to have to Accountants who pursue this Worth the effort The key,however,remains word- worry about retirement, they didn’t market often take out ads in gay media like MetroSource, a local bi- of-mouth, what Ms. Hatch called bother with long-term projections. monthly glossy magazine that fea- “old-fashioned referrals, time and “Now that our life spans are longer, tures a professional directory; take a experience. It takes time to build up, I find people worrying about how they can retire with a cushion,” Mr. booth at the annual LGBT Expo at but that’s the best way to do it.” In the end, what helps make Wiluzanski said. the Javits Center or during Gay
Wallach married his husband in Canada in 2003, a year before Massachusetts pioneered same-sex marriage in the United States. But they continue to file separately in order for Mr. Wallach to claim the full deductions for two children from a previous marriage. “When it’s allowed federally,” Mr. Wallach said, “then we’ll do joint returns.”
Domestic partnership Similarly, Winnie McCroy, who lives with her partner in Brooklyn’s Clinton Hill neighborhood, calculated that the extra time her accountant would have to spend filling out the state forms would negate any cost benefits of marriage. Instead, the two have opted for being domestic partners, a status that gives them many of the same rights as a married couple, including proxy health care decisions. “Only when the feds recognize our marriage would it be worth it to us,” said Ms. McCroy. LGBT clients need more than mere expertise, however. They also need sensitivity. Many have gotten burned by accountants who didn’t understand their situation, didn’t know the ins and outs of same-sex filings or displayed out-and-out homophobia. Thanks to technology, they’re able to hire accountants who do. Christopher Street, for example, has clients in rural areas and the Bible Belt who aren’t comfortable revealing details of their private lives to an accountant who might be a
Continued from Page 13
Straight up the hill and firm, Z. Yep. Got it.
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From minnows to marlins Continued from Page 13
Over the past three years, 16 mergers between accounting firms with at least $25 million in revenue have taken place nationally, more than in the previous 10 years, according to Koltin Consulting Group in Chicago. “Merger mania is now on steroids,” said Louis Grassi, president and chief executive of Grassi & Co., a 200-employee, Manhattanbased firm that is currently considering some merger opportunities. What’s driving the urge to merge? In previous years, accounting-firm mergers were often driven by economic pressures and succession issues. Those factors are still in play, but firms increasingly worry about keeping up with technology and about competing in an environment that favors larger firms over smaller ones and specialists over generalists. It doesn’t help, either, that many companies these days are trying to rein in costs by
real estate and energy,and J.H.Cohn knows manufacturing and consulting. Another firm, Schulman Wolfson & Abruzzo, an 11-year-old Manhattan-based company with about 30 employees, has made two small acquisitions in the past couple of months and is considering a merger with a bigger organization. One of its recent acquisitions was a sole practitioner with a book of business in the entertainment field; the other was a two-partner real estate-
focused firm with both partners planning to retire. “The knowledge needed [to be a CPA] is greater than a decade ago; you need state-of-the-art software,” said managing partner and cofounder Norman Schulman. “And we’re all competing for the same clients.” Even for bigger accounting firms, the trend is toward developing areas of expertise instead of the traditional generalist approach. Grassi & Co.,
which has a substantial health care practice, even has clinicians and consultants on staff to provide in-depth assistance to health care clients. Last year, the firm merged with Manhattan-based Pustorino Puglisi & Co. to enhance its expertise in financial services, international tax and not-for-profits. But even as the crush to combine intensifies, there are still some established New York area firms that are staying the course—and trying to make the most of it.“We haven’t had a lot of mergers,” said Tracey Segarra,director of marketing at Margolin Winer & Evens, a 200-person firm in Garden City, L.I. “We have part-
ners who came here out of college, and we’ve gone through two [top management] successions. So we’re focusing on continuity and collaboration in our marketing.” Even the biggest benefactors of today’s hyped-up accounting merger climate admit that hooking up with another firm for purely financial reasons doesn’t always make sense. After all, as in other industries, if the two firms have conflicting corporate cultures, the deal may be worth less than expected. “Bigger isn’t better; better is better,” said Mr. Marino. “If the merger’s not going to be accretive, it’s more a problem than a solution.” 䡲
‘Merger mania is now on steroids’ bringing functions such as Sarbanes-Oxley compliance in-house. The result is that differentiation is becoming more difficult for New York area accounting firms. “It’s tough competing here,” said Mr. Fligel. “It’s critical for today’s companies to have good advisers, good attorneys, good facilitators and good brokers, which means people who have done these kinds of transactions in their industry before.” Many once-thriving smaller practices are also facing challenges, having failed to bring in younger clients and struggling to attract talent. They have become “underinnovative,”said Rick Telberg,CEO of analyst firm CPA Trendlines. In the world of TurboTax and QuickBooks, “it’s getting harder for the traditional small firm to compete.”
Achieving critical mass Meanwhile, larger regional firms are looking to mergers and acquisitions to achieve critical mass and geographical diversity. Earlier this year, Manhattan-based EisnerAmper, with revenue of about $250 million, acquired San Franciscobased Harb Levy & Weiland. Manhattan-based WeiserMazars, with $140 million in revenue, scooped up Biscotti Toback & Co., in Garden City, L.I. Manhattan-based Marcum, with $250 million in revenue, merged with Konowitz Kahn & Co. of New Haven. And WithumSmith+Brown in Princeton, N.J., with revenues of nearly $80 million, bought EisnerLubin in Manhattan. In the case of J.H. Cohn and Reznick, the firms’ geographic footprints and their expertise are complementary. Reznick specializes in
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September 24, 2012 | Crain’s New York Business | 15
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DODD-FRANK, ‘OBAMACARE’ HELP BOOST ACCOUNTING FIRMS LOOKING FOR A JOB? If you’re an
accountant, odds are good you’ll find one: Local accounting firms are boosting their head counts. Employment of accounting professionals at the Big Four—PwC, Deloitte, KPMG and Ernst & Young—has jumped almost 10% this year, to 22,480, according to Crain’s research. At the top 25 firms, it’s up 7.7%, to 30,649. Most but not all firms enjoyed the boom. Overall, 16 of the top companies on Crain’s list saw an increase in head count, while nine had declines. “It’s about size and scale,” said Henry Phillips, Northeast managing partner and vice chairman at Deloitte, which ranked No. 2 on Crain’s list of largest accounting firms by employment. The company employs 5,561 local accounting professionals, up 7.4% from a year ago. Policy changes are helping the industry. The financial sector is creating work for accountants through deadlines mandated by regulations such as Dodd-Frank and Basel I and II, and in the health care world by the Affordable Care Act. “If you look around at the general economic climate, it looks challenging overall,” said Bob Garrett, managing partner at KPMG’s New York office. “But our clients still have to deal with new regulations coming out. Our growth is coming from demand from our clients around those particular topics.” KPMG, which ranked No. 3 on Crain’s list, employs 4,969 local accounting professionals, up 5.2% from last year. Another reason for growth at these firms is that, as the economy continues to recover, clients are beginning to explore opportunities such as mergers and acquisitions and technology initiatives for which they need auditing and tax-law assistance, said Dawn Fay, district president at Robert Half International. “If you look at the marketplace, there are a lot of large companies that are going through significant transactions,” said Brendan Dougher, managing partner for the New York metro market at PwC, which ranked first on Crain’s list and employs 7,069 local accounting professionals, up 13.2% from last year. And as clients face these needs, they often do not have the in-house staffing to deal with these changes and must rely on outside companies, such as accounting firms. Work for these firms is expected to increase. One indicator is the 3.5% boost in pay nationwide and in New York, according to a report by Robert Half International. Ernst & Young, for example, has plans to hire an additional 10,000 professionals nationwide, many of whom will be in accounting. The firm ranked No. 4 on Crain’s list and saw a 12.6% rise, to 4,881, in local accounting professionals. “You need to make sure that you have the talent on board to even be able to win engagements with clients,” said Ms. Fay. “If they know they have companies in the pipeline, they need the staff to do it. The revenue catches up.” —EMILY LAERMER
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The Big Four’s share
Total NY area professionals
As expected, the four largest firms account for nearly three-quarters of the professionals employed on this year’s list.
The total number of area professionals at the top 25 firms rose by 2,202 people.
All others: 8,169
Please contact Douglas A. Phillips, Managing Partner 866.203.1733 | [email protected] | www.WeiserMazars.com/CNY
WeiserMazars LLP is an independent member ﬁrm of Mazars Group.
A C C O U N T I N G
T A X
A D V I S O R Y
Big Four: 22,480
+7.7% 30,649 28,447
2011* *As of June 30.
New York Area’s Largest Accounting Firms Ranked by number of area professionals % % "% %%
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September 24, 2012 | Crain’s New York Business | 17
THE LIST New York Area’s Largest Accounting Firms
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FOR THE FULL LIST OF TOP 25 ACCOUNTING FIRMS OR ANY CRAIN’S LIST, GO TO WWW.CRAINSNEWYORK.COM/LISTS
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18 | Crain’s New York Business | September 24, 2012
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Accountants click with tech sector Small firms zero in on growing number of IT startups that need personal attention BY STEVE WEINSTEIN
treasurer of the New York Technology Council. “That’s the investment we’re making.” Sometimes that translates to reduced fees in return for an equity stake. “We’re willing to float [them for a] time as long as they understand that this is an arrangement,” Mr. Molod said. “When the time comes to launch,we expect additional compensation for prior effort.”
Cornell University, venture capitalists and tech-savvy entrepreneurs aren’t the only ones cashing in on Due diligence None of that will help, though, if New York’s booming tech industry. So are more and more local account- Wall Street wants a known entity signing off on an audit. Still, going ing firms. “We’re in the midst of launching with a name firm can have its own a full-blown effort toward attracting set of disadvantages. Before foundmore tech companies,” said Seth ing Wakefield, a SoHo-based daily Molod, a partner at Berdon. Mid- email about startups, Chris Johnson size firms such as his intend to keep spent years working at a large pritheir clients through all stages of de- vate equity firm, where he witnessed velopment, “from womb to tomb,” firsthand how investors could turn a as in tombstone ads for initial pub- potential Facebook into another Friendster. lic offerings, as Mr. Molod put it. “In some cases, the accounting He is part of a growing army of partners heading a tech practice and due-diligence costs nearly rigroup. This rapidly expanding mar- valed the actual acquisition price,” ket is helping to replenish client lists said Mr. Johnson, who is now using decimated by the continuing strug- a small CPA firm. “Using a KPMG gles of local industries like light instead of a guy on 125th Street can manufacturing, fashion and pub- cost you $65,000 more.” That message may be getting lishing. And they’re making it known that they’ll work with young through to venture capitalists. Bob entrepreneurs all the way to becom- Greene, a principal at Union Square-based Contour Ventures, ing the next Foursquare or Tumblr. Still, midsize firms have to fight believes that preparing an audit is a the perception among startups that less crucial issue.“As long as [a comonce a shoestring operation funded pany is] using a reputable regional by friends and family attracts a firm, it has more to do with how merger or buyout or entertains an clean your books are,” he said. The biggest challenge, IPO, investors want the comfort zone of a brand- POTENTIAL however, may be technoloCLIENTS gy itself. The Web has name auditing firm. made it possible for local That’s one reason the companies to outsource to tech accountants present anyone, anywhere. fledgling companies with a DIGITAL When Jonathan Shaecomprehensive game plan STARTUPS formed New York City vitz was hunting for an authat includes hand- in since 2007 have diting firm in anticipation holding they’d never get obtained some of an M&A transaction from an international firm. form of angel or capital last year, he needed one “These companies need venture funding with international reach. someone to talk to,” Mr. Source: Center for an Future’s “New Tech As chief executive of MaxMolod noted. “Young, in- Urban City” report ifier, an online digital ad experienced companies need handling.” At a Big Four, he platform, he oversees 45 employees added,“You get a sales guy you won’t and operations in Britain, Russia and Japan out of his midtown south see again.” Establishing a long-term game headquarters. For Maxifier, an acearly on allows the next Bill Gates to counting firm had to have a grasp of concentrate on his real work. But it IT, pricing issues and intellectual means accountants had better un- property. “We’re dealing in four currenderstand all the issues in this industry, such as stock options granted in cies,” he said. “It was hard to find a lieu of big salaries, tax credits for re- local midmarket firm with U.K. exsearch and development, write- perience.” He eventually landed downs for software development with London-based Crowe Clark and intellectual-property rights Whitehill. While it’s important to network here and abroad. at tech events, accountants who Reduced fees want to work with New York’s diIt’s also important for midsize gerati had also better come firms to make it clear they’re will- equipped with sympathy, knowling to cut a break for cash-strapped edge and even a sense of adventure. startups. “We’re willing to take a “It’s not so much number crunchdiscount on a bootstrap opera- ing as working directly with these ention,” said EisnerAmper partner trepreneurs and asking the right Michael Lopez, who also occupies questions,” Mr. Lopez said. “This a helpful networking perch as a community is very vibrant. I’m havfounding board member and the ing more fun than I’ve ever had.” 䡲
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September 24, 2012 | Crain’s New York Business | 19
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PUBLIC & LEGAL NOTICES
Bankruptcy Auction of Famous NYC Gourmet Market
NOTICE OF FORMATION OF Brian Molloy, L.L.C. Articles of Organization filed with the Secretary of State of NY (SSNY) on 6/26/2012. Office location: NY County. SSNY has been designated as agent upon whom process against it may be served. The Post Office address to which the SSNY shall mail a copy of any process against the LLC served upon him/her is: 425 West 23rd Street Suite 1EE New York, NY 10011. The principal business address of the LLC is: 425 West 23rd Street Suite 1EE New York, NY 10011. Purpose: any lawful act or activity.
Janice B. Grubin, the Court appointed Chapter 11 Trustee, is selling the business, including the lease, of Tribeca Market, LLC d/b/a Amish Market, subject to Bankruptcy Court approval. Amish Market, which is located at 53 Park Place, NY, NY had gross income for the 12 month period of September, 2011 thru August, 2012 of approximately $8.2 million. If you wish to submit an offer and/or bid on the purchase of this business, please request a Confidentiality Agreement, from [email protected], as the first step to receiving a Bid Package or direct any questions to the Trustee’s counsel: Arthur Goldstein, Esq., Todtman Nachamie Spizz & Johns, P.C., (212) 754-9400, [email protected]
Notice of Formation of William E. Bernstein LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 11/29/11. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: c/o Leonard Rosen & Co. P.C., 15 Maiden Lane, Rm 505, NY, NY 10038. Purpose: any lawful activity.
EVENT Ronald McDonald House New York’s 5th Annual Block Party on Saturday, September 29th from 11AM to 5:30PM. Part-street fair, part-festival, the Block Party is our way of saying thank you to our loyal supporters. Join us on East 73rd Street between First and York Avenues for a day of fun, food, shopping, rides and games. Event is free and open to the public. For more information visit www.rmh-newyork.org or call 212-639-0181.
POSITION AVAILABLE PERSONAL ASSISTANT Needed Urgently for setting appointments, running errands, travel arrangements, banking, personal shopping, pick up deliveries Access to car. Paid $490 wk. Please send your resume to: [email protected] - 347-921-1671
TELECOMMUNICATIONS NYC'S MOTOROLA MOTOTRBO SPECIALISTS
33 East 33rd Street New York, NY 10016
To place your classified ad call Joanne Barbieri @ 212-210-0189 or Trish Henry @ 212-210-0711
Notice of Registration of Herbert Smith New York LLP filed with Sec. of State of NY (SSNY) on 7/23/12. Office Location: NY County. LLP formed in England and Wales, United Kingdom on 5/09/2012. SSNY designated as agent of LLP upon whom process against it may be served. SSNY shall mail process to the LLP at 1745 Broadway New York, NY 10019-4368. Principal Office address: 1745 Broadway New York, NY 10019-4368. Purpose: Law Practice. Notice of Qualification of SP FULL STACK COMMERCIAL CAPITAL LLC. Authority filed with Secy. of State of NY (SSNY) on 08/01/12. Office location: NY County. LLC formed in Delaware (DE) on 06/27/12. Princ. office of LLC: 1330 Ave. of the Americas, Ste. 1200, NY, NY 10019. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co., 80 State St., Albany, NY 12207-2543. DE addr. of LLC: 2711 Centerville Rd., Ste. 400, Wilmington, DE 19808. Arts. of Org. filed with DE Secy. of State, 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity. NOTICE OF FORMATION OF INCLUED LLC. Arts of Org filed with Secy of State of NY (SSNY) on 9/27/10. Office location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to principal business address: 35 E 35th St., NY NY 10016. Purpose: any lawful act. Notice of Qual. of International Sources LLC, Auth. filed Sec’y of State (SSNY) 2/12/09. Office loc.: NY County. LLC org. in DE 10/3/08. SSNY desig. as agent of LLC upon whom process against it may be served. SSNY shall mail copy of proc. to CTC, 111 Eighth Ave., NY, NY 10011, the Reg. Agt. upon whom proc. may be served. DE off. addr.: CSC, 2711 Centerville Rd., Wilmington, DE 19808. Cert. of Form. on file: SSDE, Townsend Bldg., Dover, DE 19901. Purp.: any lawful activities. Notice of Qual. of TIG Arbitrage Enhanced, L.P., Auth. filed Sec’y of State (SSNY) 12/8/11. Office loc.: NY County. LP org. in DE 12/5/11. SSNY desig. as agent of LP upon whom process against it may be served. SSNY shall mail copy of proc. to Att: Michael Tiedemann, 520 Madison Ave., 26th Fl., NY, NY 10022. DE off. addr.: CSC, 2711 Centerville Rd., Wilmington, DE 19808. Cert. of LP on file: SSDE, Townsend Bldg., Dover, DE 19901. Name/addr. of each gen. ptr. avail. at SSNY. Purp.: any lawful activities.
20 | Crain’s New York Business | September 24, 2012
Notice of Qualification of Near North Partners, LLC. Authority filed with NY Dept. of State on 8/15/12. Office location: NY County. LLC formed in IL on 10/8/08. NY Sec. of State designated agent of LLC upon whom process against it may be served and shall mail process to: c/o CT Corporation System, 111 8th Ave., NY, NY 10011, regd. agent upon whom process may be served. IL and principal business addr.: 875 N Michigan Ave., Ste. 3100, Chicago, IL 60611. Cert. of Org. filed with IL Sec. of State, 330 Howlett Bldg., Springfield, IL 62756. Purpose: all lawful purposes. Notice of Formation of 509 Fifth JS LLC. Arts. of Org. filed Secy. of State of NY (SSNY) on 8/27/12. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: c/o The LLC, 500 Fifth Ave., 54th Fl., NY, NY 10010. Purpose: any lawful activity. Notice of Formation of BRP Vendors Developer, LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 7/31/12. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: c/o BRP Development Corp., 18 E. 41st St., Ste. 1201, NY, NY 10017. Purpose: any lawful activity. Name of Foreign LLC: LionTree SL Opportunity LLC. App. for Authority filed with Sec. of State 8/10/2012. LLC formed in DE on 8/9/2012. NY State Office loc.: New York County. Sec. of State of NY designated as agent of LLC upon whom process may be served. Sec. of State of NY shall mail copy of process to: LionTree SL Opportunity LLC, c/o Corporation Service Company, 80 State Street, Albany, NY 12207-2543. Address of LLC in State of formation is: c/o The Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington, DE 19808. Name and address of authorized official in DE where a copy of LLC’s cert. of formation is filed is: Sec. of State of the State of DE, John G. Townsend Building, 401 Federal St., Suite 3, Dover, DE 19901. Purpose: to engage in any lawful act.
Notice of formation of Empire State Spirits Company. Articles of Organization filed with the Secretary of State of NY (SSNY) on 6/18/2012. Office location: New York County. SSNY has been designated as agent upon whom process against it may be servced. The Post Office address to which the SSNY shall mail a copy of any process against the LLC served upon him or her is: 23 East 10th Street, Suite 419, New York, NY 10003. The principal business address of the LLC is: 23 East 10th Street, Suite 419, New York, NY 10003. Dissolution date: None. Purpose: any lawful act or activity.
Notice of Qualification of TRANS HUDSON BROKERAGE, LLC. Authority filed with Secy. of State of NY (SSNY) on 08/21/12. Office location: NY County. LLC formed in Delaware (DE) on 05/21/12. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co., 80 State St., Albany, NY 12207-2543. DE addr. of LLC: 2711 Centerville Rd., Ste. 400, Wilmington, DE 19808. Arts. of Org. filed with Secy. of State, Div. of Corps., John G. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.
Notice of Qual. of SM SoHo LLC, Auth. filed Sec’y of State (SSNY) 4/9/12. Office loc.: NY County. LLC org. in DE 4/5/12. SSNY desig. as agent of LLC upon whom process against it may be served. SSNY shall mail copy of proc. to NRAI, 875 Ave of the Americas, NY, NY 10001, the Reg. Agt. upon whom proc. may be served. DE off. addr.: 160 Greentree Dr., Ste. 101, Dover, DE 19904. Cert. of Form. on file: SSDE, Townsend Bldg., Dover, DE 19901. Purp.: any lawful activities.
KOR IMPACT LLC, Arts. of Org. filed with the SSNY on 07/05/2012. Office loc: NY County. SSNY has been designated as agent upon whom process against the LLC may be served. SSNY shall mail process to: Barzan Jafar, 108 W 17th St. Apt. #1, NY, NY 10011. Purpose: Any Lawful Purpose.
NOTICE OF FORMATION OF SIANEY, LLC. Arts of Org filed with Secy of State of NY (SSNY) on 6/12/12. Office location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to principal business address: 153 ESSEX ST., STE 5D, NY, NY 10002. Purpose: any lawful act. NOTICE OF FORMATION OF IAIN KENNEDY CONSULTING LLC. Arts of Org filed with Secy of State of NY (SSNY) on 3/23/12. Office location: NY County. SSNY designated as agent upon whom process may be served. PO address to which SSNY shall mail copy of process against LLC: C/O US CORP AGENTS, INC. 7014 13TH AVE, STE 202. BKLYN, NY 11228. Principal business address: 105 DUANE ST., APT 51E. NY, NY 10007. Purpose: any lawful act. Notice of Qual. of Altum Credit Fund, L.P., Auth. filed Sec’y of State (SSNY) 2/1/12. Office loc.: NY County. LP org. in DE 2/19/09. SSNY desig. as agent of LP upon whom process against it may be served. SSNY shall mail copy of proc. to Att: Marjorie Hogan, 250 Greenwich St., 30th Fl., NY, NY 10007. DE off. addr.: CSC, 2711 Centerville Rd., Wilmington, DE 19808. Cert. of LP on file: SSDE, Townsend Bldg., Dover, DE 19901. Name/addr. of each gen. ptr. avail. at SSNY. Purp.: any lawful activities. SMART ENVIRONMENTAL SOLUTIONS LLC; Arts., of Org., filed with NY Sec. of State (“SSNY”) 07/03/2012. Office in New York; LLC, SSNY designated agent for service of process with copy mailed to: Pryor Cashman LLP, 7 Times Square, New York, NY 10036, Attn: Jeffrey C. Johnson, Esq., All lawful business purposes. Notice of Qualification of HIGHBRIDGE PRINCIPAL STRATEGIES - MEZZANINE PARTNERS II, L.P. Authority filed with Secy. of State of NY (SSNY) on 09/07/12. Office location: NY County. LP formed in Delaware (DE) on 01/17/12. Princ. office of LP: Highbridge Principal Strategies, LLC, 40 W. 57th St., 33rd Fl., NY, NY 10019. SSNY designated as agent of LP upon whom process against it may be served. SSNY shall mail process to the LP at the addr. of its princ. office. Name and addr. of each general partner are available from SSNY. DE addr. of LP: Corporation Service Co., 2711 Centerville Rd., Wilmington, New Castle Cnty., DE 19808. Arts. of Org. filed with DE Secy. of State, Dept. of State, Div. of Corps., John G. Townsend Bldg., P.O. Box 898, Dover, DE 19903. Purpose: Any lawful activity.
SMK ADVISORS LLC, Arts. of Org. filed with the SSNY on 07/06/2012. Office loc: NY County. SSNY has been designated as agent upon whom process against the LLC may be served. SSNY shall mail process to: Sandra Kostel, 15W 20th St., #8A, NY, NY 10011. Purpose: Any Lawful Purpose. ACB PUBLISHING LLC, a domestic LLC, Arts. of Org. filed with the SSNY on 7/23/12. Office location: New York County. SSNY is designated as agent upon whom process against the LLC may be served. SSNY shall mail process to: The LLC, 190 E. 72nd St., NY, NY 10021. General Purposes. Notice of Formation of MetroPark Ventures LLC. Arts. of Org. filed Secy. of State of NY (SSNY) on 8/1/12. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: The LLC, 353 Third Avenue, Suite 308, NY, NY 10010. Purpose: any lawful activity. AWARD WINNING FLOORS LLC. Art. Of Org. Filed Sec. of State of NY 07/06/2012. Off. Loc.: New York Co. Corporation Service Company designated as agent upon whom process against it may be served. SSNY to mail copy of process to THE LLC c/o CSC, 80 State Street, Albany, NY 12207. Purpose: Any lawful act or activity. Notice of Formation of PTSE PROPERTY HOLDINGS LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 05/16/12. Office location: NY County. Princ. office of LLC: c/o Vincent Marsden, 150 E. 52nd St., 16th Fl., NY, NY 10022. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the addr. of its princ. office. Purpose: Any lawful activity. COLUMBUS SKYLINE LLC Articles of Org. filed NY Sec. of State (SSNY) 7/16/12. Office in NY Co. SSNY desig. agent of LLC upon whom process may be served. SSNY shall mail copy of process to 10 E. 39th St., Ste. 1110, NY, NY 10016, which is also the principal business location. Purpose: Any lawful purpose. Notice of Qual. of SDR Partners, LLC, Auth. filed Sec’y of State (SSNY) 12/23/11. Office loc.: NY County. LLC org. in DE 12/22/11. SSNY desig. as agent of LLC upon whom process against it may be served. SSNY shall mail copy of proc. to Att: Jeffrey Jacobowitz, 6 E. 43rd St., 23rd Fl., NY, NY 10017. DE off. addr.: CSC, 2711 Centerville Rd., Wilmington, DE 19808. Cert. of Form. on file: SSDE, Townsend Bldg., Dover, DE 19901. Purp.: any lawful activities.
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PUBLIC & LEGAL NOTICES Notice of Qualification of Street King LLC. DBA SK Energy Shots LLC. Authority filed with Secy. of State of NY (SSNY) on 8/2/12. Office location: NY County. LLC formed in DE on 4/11/11. SSNY designated agent of LLC upon whom process against it may be served. SSNY shall mail process to: 575 Madison Ave., NY, NY 10022, also addr. of princ. office. DE addr. of LLC: Corp. Services, Co., 2711 Centerville Rd. Ste. 400, Wilmington, DE 19808. Cert. of LLC filed with DE Secy. of State, 401 Federal St., Dover, DE 19901. Purpose: any lawful activity. Notice of Qualification of Hedge Fund Select: Bocage Global Resources Fund LLC. Authority filed with NY Dept. of State on 8/28/12. Office location: NY County. LLC formed in DE on 6/13/12. NY Sec. of State designated agent of LLC upon whom process against it may be served and shall mail process to the principal business address: 200 West St., NY, NY 10282. DE address of LLC: 1209 Orange St., Wilmington, DE 19801. Cert. of Form. filed with DE Sec. of State, P.O. Box 898, Dover, DE 19903. Purpose: all lawful purposes. Notice Of Formation Of QuietContent, LLC. Arts of Org filed w/ the Secy of State of NY (SSNY) on 2/15/12. Office location: NY Co. SSNY designated agent upon whom process may be served and shall mail copy of process against LLC to principal business address: Carey Gattyan, 104 W 29th St, 5th Fl, NY, NY 10001. Purpose: any lawful act. Magnetic Collaborative LLC - Arts. of Org. filed with Secy. of State of NY (SSNY) on 6/1/12. Office location: NY Co. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Ganfer & Shore, LLP, 360 Lexington Ave., NY, NY 10017. Purpose: any lawful activities. HD BLUE PRODUCTIONS LLC Articles of Org. filed NY Sec. of State (SSNY) 6/25/2012. Office in NY Co. SSNY desig. agent of LLC upon whom process may be served. SSNY shall mail copy of process to c/o U.S. Corporation Agents, Inc., 7014 13th Ave., Ste.202, Brooklyn, NY 11228, which is also the registered agent of the LLC upon whom process against the LLC may be served. Purpose: Any lawful purpose. NOTICE OF FORMATION OF PDL Design, LLC. Arts of Org filed with Secy of State of NY (SSNY) on 6/26/12. Office location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to principal business address: 142 E 16th St, NY, NY 10003. Purpose: any lawful act. Notice of Formation of GOMEZ-ACEBO & POMBO LLP. Cert. of Reg. filed with Secy. of State of NY (SSNY) on 06/28/12. Office location: NY County. Princ. office of LLP: 126 E. 56th St., Ste. 2020, NY, NY 10022. SSNY designated as agent of LLP upon whom process against it may be served. SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 12207-2543. Purpose: Any lawful activity. Notice of Qualification of SEQUOYAH ELECTRIC, LLC. Authority filed with Secy. of State of NY (SSNY) on 08/29/12. Office location: NY County. LLC formed in Washington (WA) on 12/04/02. Princ. office of LLC: 15135 NE 92nd St., Redmond, WA 98052. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co., 80 State St., Albany, NY 12207-2543. Arts. of Org. filed with Sam Reed, Secy. of State, PO Box 40220, Olympia, WA 98504. Purpose: Any lawful activity.
NOTICE OF FORMATION OF Freedman Anselmo Lindberg LLC. Application for Authority filed with the Secretary of State of New York (SSNY) on 07/31/2012. Office location: NEW YORK County. LLC formed in Illinois on 01/26/2005. SSNY has been designated as an agent upon whom process against it may be served. The Post Office address to which the SSNY shall mail a copy of any process against the LLC served upon him/her is: 1807 W. Diehl Rd. Suite 333 Naperville, IL 60563. The principal business address of the LLC is: 1807 W. Diehl Rd. Suite 333 Naperville, IL 60563. Certificate of LLC filed with Secretary of State of Illinois located at: 213 State Capitol Springfield, IL 62756. Purpose: any lawful act or activity. Notice of Formation of 130 Fifth Avenue Store Company LLC. Arts. of Org. filed Secy. of State of NY (SSNY) on 8/22/12. Off. loc.: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: c/o The Georgetown Company, 667 Madison Ave., NY, NY 10021. Purpose: any lawful activity. NOTICE OF FORMATION OF BAL Associates LLC. Arts of Org filed with Secy of State of NY (SSNY) on 8/6/12. Office location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to principal business address: c/o Wiggin and Dana LLP, 450 Lexington Ave, Ste 3800, NY NY 10017. Purpose: any lawful act. Notice of Formation of VertIQal Trade Systems, LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 08/22/12. Office location: NY County. Princ. office of LLC: 261 W. 35th St., Ste. 1003, NY, NY 10001. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the addr. of its princ. office. Purpose: Any lawful activity. NOTICE OF QUALIFICATION of DRYBAR HOLDINGS LLC. App for Authority filed with Secy of State of NY (SSNY) on 5/10/12. Office location: NY County. LLC formed in DE on 1/14/10. SSNY designated as agent upon whom process may be served. The Post Office address to which the SSNY shall mail copy of process against LLC to principal business address: 49 Discovery, Ste 150, Irvine, CA 92618. Cert of LLC filed with Secy of State of DE located: 401 Federal St, Ste 4, Dover, DE 19901. Purpose: any lawful act. Global Lending Services LLC. Arts of Org filed with Secy of State of NY (SSNY) on 6/8/12. Office location: NY County. LLC formed in DE on 10/28/2011. SSNY designated agent upon whom process may be served and shall mail copy of process against LLC: NCR, Melissa Allen, 10 E 40th St, 10th Fl, NY, NY 10016. Principal business address: Five Concourse Pkwy, Ste 2925, Atlanta, GA 30328. Cert of LLC filed with Secy of State of DE located: 615 S DuPont Highway. Purpose: any lawful act. Notice of Formation of BRONX OPPORTUNITY LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 07/30/12. Office location: NY County. Princ. office of LLC: 445 Hamilton Ave., White Plains, NY 10601. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co., 80 State St., NY, NY 12207-2543. As amended by Cert. of Correction filed with SSNY on 09/04/12, the process addr. is Corporation Service Co., 80 State St., Albany, NY 12207-2543. Purpose: Any lawful activity.
Notice of Qualification of GoldenTree CLO Debt Investment Partners 2012 LP. Authority filed with NY Dept. of State on 7/24/12. Office location: NY County. LP formed in DE on 6/11/12. NY Sec. of State designated agent of LP upon whom process against it may be served and shall mail process to the principal business addr.: 300 Park Ave., 20th Fl., NY, NY 10022. DE addr. of LP: c/o National Corporate Research, Ltd., 615 S. DuPont Hwy., Dover, DE 19901. Name/addr. of genl. ptr. available from NY Sec. of State. Cert. of LP filed with DE Sec. of State, Townsend Bldg., Dover, DE 19901. Purpose: all lawful purposes. NOTICE OF FORMATION of ZJNY Holding LLC. Arts of Org. filed with NY Secy of State (SSNY) on 08/01/2012. Office location: New York County. SSNY is designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: 533 7th Avenue, Suite 1705, New York, NY 10018. Purpose: any lawful activity. Notice of Qualification of GoldenTree CLO Debt Investment GP 2012 LLC. Authority filed with NY Dept. of State on 7/24/12. Office location: NY County. LLC formed in DE on 6/11/12. NY Sec. of State designated agent of LLC upon whom process against it may be served and shall mail process to the principal business addr.: 300 Park Ave., 20th Fl., NY, NY 10022. DE addr. of LLC: c/o National Corporate Research, Ltd., 615 S. DuPont Hwy., Dover, DE 19901. Cert. of Form. filed with DE Sec. of State, Townsend Bldg., Dover, DE 19901. Purpose: all lawful purposes. Notice is hereby given that an Eating Place Beer License has been applied for by the undersigned to permit the sale of beer at retail rates for on-premises consumption at the Courtyard by Marriott located at 410 East 92nd Street, New York, NY 10128 under the Alcoholic Beverage Control Law. RLJ C NY Upper Eastside Lessee, LLC & Highgate Hotels, L.P. Notice of Qual. of LF Accessories Group LLC, Auth. filed Sec’y of State (SSNY) 7/21/10. Office loc.: NY County. LLC org. in DE 7/16/10. SSNY desig. as agent of LLC upon whom process against it may be served. SSNY shall mail copy of proc. to CTC, 111 Eighth Ave., NY, NY 10011, the Reg. Agt. upon whom proc. may be served. DE off. addr.: CTC, 1209 Orange St., Wilmington, DE 19801. Cert. of Form. on file: SSDE, Townsend Bldg., Dover, DE 19901. Purp.: any lawful activities. Notice of Formation of Limited Liability Company (LLC). Name: JA HAN OYSTER BAY HOLDINGS, LLC. Articles of Organization filed by the Department of State of New York on: 06/25/2012. Office location: County of New York. Purpose: any and all lawful activities. Secretary of State of New York (SSNY) designated as agent of LLC upon whom process against it may be served. SSNY shall mail a copy of process to: c/o Argo Real Estate LLC. 50 West 17th Street, New York, NY 10011. Notice of Qualification of St. Nicholas Park Apartments LLC. Authority filed with NY Dept. of State on 6/4/12. Office location: NY County. Princ. bus. addr.: 340 Pemberwick Rd., Greenwich, CT 06831. LLC formed in DE on 2/9/10. NY Sec. of State designated agent of LLC upon whom process against it may be served and shall mail process to: c/o CT Corporation System, 111 8th Ave., NY, NY 10011, regd. agent upon whom process may be served. DE addr. of LLC: 1209 Orange St., Wilmington, DE 19801. Cert. of Form. filed with DE Sec. of State, 401 Federal St., Dover, DE 19901. Purpose: all lawful purposes.
Notice of Qual. of Metropolitan Real Estate Partners International V-T, L.P., Auth. filed Sec’y of State (SSNY) 1/13/12. Office loc.: NY County. LP org. in DE 1/11/12. SSNY desig. as agent of LP upon whom process against it may be served. SSNY shall mail copy of proc. to Att: Felipe Dorregaray, 135 E. 57th St., 16th Fl., NY, NY 10022. DE off. addr.: CSC, 2711 Centerville Rd., Wilmington, DE 19808. Cert. of LP on file: SSDE, Townsend Bldg., Dover, DE 19901. Name/addr. of each gen. ptr. avail. at SSNY. Purp.: any lawful activities.. Notice of Formation of 750 Jalanbo Holdings LLC, Art. of Org. filed Sec’y of State (SSNY) 5/16/12. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail copy of process to c/o Greenberg Traurig, Att: Joshua Hager, Esq., 200 Park Ave., NY, NY 10166. Purpose: any lawful activities. Notice of Formation of 3310 Holdings LLC, Art. of Org. filed Sec’y of State (SSNY) 3/21/12. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail copy of process to c/o Kriss & Feuerstein, 360 Lexington Ave., Ste. 1200, NY, NY 10017. Purpose: any lawful activities. SECOND SPRING, LLC, a domestic LLC, Arts. of Org. filed with the SSNY on 6/18/12. Office location: New York County. SSNY is designated as agent upon whom process against the LLC may be served. SSNY shall mail process to: The LLC, 251 W. 92 ST., Apt. 9C, New York, NY 10025. General Purposes. SELLERS INTERNATIONAL, LLC, a foreign LLC, filed with the SSNY on 6/3/10. Office location: New York County. SSNY is designated as agent upon whom process against the LLC may be served. SSNY shall mail process to: United States Corporation Agents, Inc., 1521 Concord Pike, #301, Wilmington, DE 19803. General Purposes. NOTICE OF FORMATION OF MISTAHLE, LLC. Arts of Org filed with Secy of State of NY (SSNY) on 6/12/12. Office location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to principal business address: 153 ESSEX ST., STE 5D, NY, NY 10002. Purpose: any lawful act. NOTICE OF FORMATION OF LIMITED LIABILITY COMPANY. NAME: TREATISE LIVING, LLC. Articles of Organization were filed with the Secretary of State of New York (SSNY) on 04/16/12. Office location: New York County. SSNY has been designated as agent of the LLC upon whom process against it may be served. SSNY shall mail a copy of process to the LLC, c/o Garin & Associates, PLLC, 100 Park Avenue, Suite 1600, New York, New York 10017. Purpose: For any lawful purpose. Notice of Qualification of D&T PARTNERS GP, LLC. Authority filed with Secy. of State of NY (SSNY) on 08/01/12. Office location: NY County. LLC formed in Delaware (DE) on 07/27/12. Princ. office of LLC: c/o South Street Capital Mgmt., Attn: Chad S. Elson, 369 Lexington Ave., 23rd Fl., NY, NY 10017. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the addr. of its princ. office. DE addr. of LLC: c/o Corporation Service Co., 2711 Centerville Rd., Ste. 400, Wilmington, DE 19808. Cert. of Form. filed with Secy. of State of DE, 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.
NOTICE OF QUALIFICATION OF Papanic Niche Spirits LLC. App for Authority filed with the Secy of State of NY (SSNY) on 5/17/12. Office location: NY County. LLC formed in DE on 6/9/11. SSNY designated agent upon whom process may be served and shall mail copy of process against LLC to principal business address: 200 E 57th St, Ste 8G, NY, NY 10022. DE address of LLC: c/o The Corp Trust Company, Corporation Trust Center, 1209 Orange Street, Wilmington, DE 19801. Cert of LLC filed with Secy of State of DE located: PO Box 898, Dover, DE 19901. Purpose: any lawful act. SCREAMING EAGLE OF SOUL, LLC Art. Of Org. Filed Sec. of State of NY 07/10/2012. Off. Loc.: New York Co. SSNY designated as agent upon whom process against it may be served. SSNY to mail copy of process to THE LLC c/o L & B 325 West 38th St., Suite 1101, New York, NY 10018. Purpose: Any lawful act or activity. Notice of Formation of Limited Liability Company (LLC). Name: NILI LOTAN HOLDINGS, LLC. Articles of Organization filed by the Department of State of New York on: 07/10/2012. Office location: County of New York. Purpose: any and all lawful activities. Secretary of State of New York (SSNY) designated as agent of LLC upon whom process against it may be served. SSNY shall mail a copy of process to: 188 Duane Street, New York, NY 10013. SPEAK INTERNATIONAL LLC. Arts of Org. filed with SSNY on 6/6/12. Office loc.: NY County. SSNY designated as agent upon whom process may be served and shall mail process to: 29 W 76th St #3, NY, NY 10023. Purpose: Any lawful act. NOTICE OF FORMATION OF Another Wild Hare. Arts of Org filed with Secy of State of NY (SSNY) on 6/28/12. Office location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to principal business address: 514 W 135th St, Apt 2 NY, NY 10031. Purpose: any lawful act. Notice of Formation of 157 Niantic MM LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 8/7/12. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: c/o Niantic Partners LLC, 590 Madison Ave., Ste. 1800, NY, NY 10022. Purpose: any lawful activity. Notice of Qual. of SM SoHo Promote LLC, Auth. filed Sec’y of State (SSNY) 4/9/12. Office loc.: NY County. LLC org. in DE 4/5/12. SSNY desig. as agent of LLC upon whom process against it may be served. SSNY shall mail copy of proc. to NRAI, 875 Ave of the Americas, NY, NY 10001, the Reg. Agt. upon whom proc. may be served. DE off. addr.: 160 Greentree Dr., Ste. 101, Dover, DE 19904. Cert. of Form. on file: SSDE, Townsend Bldg., Dover, DE 19901. Purp.: any lawful activities. Notice of Qualification of RESONANCE ASSET MANAGEMENT LLC. Authority filed with Secy. of State of NY (SSNY) on 08/14/12. Office location: NY County. LLC formed in Delaware (DE) on 08/13/12. Princ. office of LLC: 155 Wooster St., Ste. 8R, NY, NY 10012. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the princ. office of the LLC. DE addr. of LLC: c/o Corporation Service Co., 2711 Centerville Rd., Ste. 400, Wilmington, DE 19808. Arts. of Org. filed with Secy. of State, Div. of Corps., John G. Townsend Bldg., 401 Federal St., Dover, DE 19901. Purpose: Any lawful activity.
September 24, 2012 | Crain’s New York Business | 21
FOR THE RECORD ABOUT THIS SECTION FOR THE RECORD is a weekly listing of information from the public record that
can help businesspeople in the New York area find opportunities, potential new clients and updates on competitors. To ask questions or get more information on this section, contact Crain’s research department at [email protected]
NEW IN TOWN Companies that would like to have details of openings published should submit descriptions following this format to [email protected], with “New in Town” in the subject line. ●
Blackbird 162 Avenue B, Manhattan The bar opened in the East Village. The space was previously occupied by Lakeside Lounge.
Brooklyn Ramen Dassara 271 Smith St., Brooklyn The eatery opened in Carroll Gardens. It will serve deli ramen and more.
COMPANY MOVES Companies that would like to have details of recent moves published should submit descriptions following this format to [email protected], with “Company Moves” in the subject line. ●
Abbott Capital Management 1290 Sixth Ave., Manhattan The private equity investment firm has opened in Rockefeller Center. Its previous office location was at 1211 Sixth Ave.
game development company relocated in midtown. The previous location was at 800 Third Ave.
BANKRUPTCIES The following listings are selected from the most recent available filings by companies seeking bankruptcy protection in the Southern and Eastern Districts of New York. Information was obtained from U.S. Bankruptcy Court records available on Public Access to Court Electronic Records. Listings are in alphabetical order. ●
American Multi-Systems Inc. 306 E. 105th St., Manhattan Filed for Chapter 11 bankruptcy protection on Sept. 6. The filing cites estimated liabilities of $100,001 to $500,000 and estimated assets of $100,001 to $500,000.
Filed for Chapter 7 bankruptcy protection on Sept. 6. The filing cites estimated liabilities of $10,000,001 to $50 million and estimated assets of $1,000,001 to $10 million.
GOVERNMENT CONTRACT OPPORTUNITIES Following are selected contract opportunities recently announced by New York City agencies. To learn how to sell goods and services to city government, visit www.nyc.gov/selltonyc. For a searchable database of current procurement notices, visit www.nyc.gov/cityrecord. Listings are alphabetical by category and department.
CONSTRUCTION SERVICES ● Department of Design and Construction Seeks competitive sealed bids by 2 p.m. on Oct. 11 for the upgrade of the Flushing Town Hall building in Queens. An optional prebid conference will take place on Sept. 27 at 10 a.m. at the hall, located at 137-35 Northern Blvd., Queens. Bid documents are available at www.nyc.gov/ddc and require a $35 deposit, payable only by company check or money order. For more information, contact Ben Perrone at (718) 391-2614. ●
Arakel 316 Second Ave., Manhattan Filed for Chapter 11 bankruptcy protection on Sept. 4. The filing cites estimated liabilities of $1,000,001 to $10 million and estimated assets of less than $50,000. The creditors with the largest unsecured claims are Newell Funding, owed $1,635,463; J Munro, owed $85,000; and Soil Mechanics, owed $12,000.
Department of Parks and Recreation Seeks competitive sealed bids by 10:30 a.m. on Oct. 9 for the reconstruction of the Little League baseball field in Inwood Hill Park, Manhattan. Bid documents are available for $25 in the blueprint room, Olmsted Center, Flushing Meadows Corona Park, Queens, from 8 a.m. to 3 p.m. The fee is payable by company check or money order to the City of New York, Parks and Recreation. To make inquiries, contact Juan Alban at (718) 760-6771 or [email protected] parks.nyc.gov.
GOODS AND SERVICES
Requests proposals by 1 p.m. on Oct. 18 for an Office of School Food Systems modernization project. For bid documents, email [email protected] .nyc.gov or call (718) 935-2300. There will be a preproposal conference on Oct. 1 at 2:30 p.m. at St. Francis College, 180 Remsen St., Brooklyn. For more information, contact Sande Pisik at (718) 935-3265 or [email protected] .gov.
REAL ESTATE DEALS
Companies that would like to have details of their recent transactions appear in these listings should email descriptions following this format to [email protected] .com, with “Real estate transaction” in the subject line, or enter them online at crainsnewyork.com/submitadeal. Deals are listed in order of square footage.
Following are recent insider transactions at New York’s largest publicly held companies filed with the Securities and Exchange Commission by executives and major shareholders. Listings are in order of transaction value. The information was obtained from Thomson Reuters. ●
COMMERCIAL Frank Hirth renewed its lease for 10 years for 13,900 square feet at 88 Pine St. The accounting firm will be doubling its current space in the building. The tenant was represented by the Kaufman Organization’s Michael Kaufman. The landlord, Orient Overseas Associates, was represented by Cushman & Wakefield Inc.’s Frank Cento. The asking rent was $45 per square foot.
Knighthead Capital signed a lease for 12,800 square feet at 1140 Sixth Ave. The finance firm will occupy the 12th floor of the building. The tenant was represented by Jones Lang LaSalle’s Jeff Fischer and Scott Panzer. The landlord, Equity Office Properties, was represented by Jones Lang LaSalle’s Ryan Masiello and Douglas Neye, and Equity Office’s Josh Glick. The asking rent was undisclosed.
PrePlay 42 W. 38th St., Manhattan The second-screen social and mobile
LBC Western Inc. 420 Lexington Ave., Manhattan
Department of Education
square feet at 462 Seventh Ave. The real estate law firm occupies the 12th floor. The tenant was represented by the Kaufman Organization’s Grant Greenspan. The landlord, 462 S.I.K. Associates, was represented by the Kaufman Organization’s Steven Kaufman and Barbara Raskob. The asking rent was between the high $30s and low $40s per square foot.
Konner Teitelbaum & Gallagher P.C. renewed its lease for 10 years for 9,800
Saks Inc. (SKS) Inmobiliaria Carso S.A. de C.V. sold 2,620,000 shares of common stock at prices ranging from $11.60 to $11.94 between Aug. 20 and Aug. 27, in a transaction worth $30,861,454. It now directly holds 23,900,000 shares.
CBS Corp. (CBS) Martin D. Franks, executive vice president, planning, policy and government affairs, exercised options on 282,424 shares of common stock at prices ranging from $23.19 to $30.94 on Aug. 14, in a transaction worth $7,421,400. On the same day, he sold 282,424 shares of common stock at $36.02 in a transaction worth $10,172,602. He now directly holds 33,915 shares.
Sirius XM Radio (SIRI) Liberty Interactive Corp. purchased 5,536,351 shares of common stock at prices ranging from $2.51 to $2.52 between Sept. 4 and Sept. 5, in a transaction worth $13,933,553. It now indirectly holds 527,736,000 shares. 䡲
TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM
PUBLIC & LEGAL NOTICES Notice of Qualification of West 46 Office LLC. Authority filed with Secy. of State of NY (SSNY) on 8/7/12. Office location: NY County. LLC formed in Delaware (DE) on 8/1/12. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: c/o C T Corporation System, 111 Eighth Ave., NY, NY 10011, also the registered agent. Principal office Address: 805 Third Ave., 7th Fl., NY, NY 10022. Address to be maintained in DE: Corporation Trust Center, 1209 Orange St., Wilmington, DE 19801. Arts of Org. filed with the DE Secretary of State, 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: any lawful activities. Notice of Qualification of OUR NOISEY BRAINS, LLC. Authority filed with Secy. of State of NY (SSNY) on 8/22/12. Office location: New York County. LLC formed in DE on 8/15/12. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: Jane S. Englebardt, 295 Madison Avenue, 12th Floor, New York, NY 10017. Address required to be maintained in home jurisdiction: c/o National Registered Agents, Inc., 160 Greentree Drive, Ste. 101, Dover, Delaware 19904. Arts. of Org. filed with Delaware Division of Corporations, 401 Federal Street, Suite 4, Dover, DE 19901. Purpose: Develop and license software applications.
Notice of Formation of Grant Park Associates III, LLC. Arts. of Org. filed with NY Dept. of State on 11/4/11. Office location: NY County. Princ. bus. addr.: 340 Pemberwick Rd., Greenwich, CT 06831. Sec. of State designated agent of LLC upon whom process against it may be served and shall mail process to: c/o CT Corporation System, 111 8th Ave., NY, NY 10011, regd. agent upon whom process may be served. Purpose: any lawful activity. Notice of Formation of GP III LLC. Arts. of Org. filed with NY Dept. of State on 11/3/11. Office location: NY County. Princ. bus. addr.: 340 Pemberwick Rd., Greenwich, CT 06831. Sec. of State designated agent of LLC upon whom process against it may be served and shall mail process to: c/o CT Corporation System, 111 8th Ave., NY, NY 10011, regd. agent upon whom process may be served. Purpose: any lawful activity. Notice of Qual. of SM SoHo Investor LLC, Auth. filed Sec’y of State (SSNY) 4/9/12. Office loc.: NY County. LLC org. in DE 4/5/12. SSNY desig. as agent of LLC upon whom process against it may be served. SSNY shall mail copy of proc. to NRAI, 875 Ave of the Americas, NY, NY 10001, the Reg. Agt. upon whom proc. may be served. DE off. addr.: 160 Greentree Dr., Ste. 101, Dover, DE 19904. Cert. of Form. on file: SSDE, Townsend Bldg., Dover, DE 19901. Purp.: any lawful activities.
22 | Crain’s New York Business | September 24, 2012
Notice of Qual. of MREP9, LLC, Auth. filed Sec’y of State (SSNY) 1/13/12. Office loc.: NY County. LLC org. in DE 1/11/12. SSNY desig. as agent of LLC upon whom process against it may be served. SSNY shall mail copy of proc. to Att: Felipe Dorregaray, 135 E. 57th St., 16th Fl., NY, NY 10022. DE off. addr.: CSC, 2711 Centerville Rd., Wilmington, DE 19808. Cert. of Form. on file: SSDE, Townsend Bldg., Dover, DE 19901. Purp.: any lawful activities. Notice of Formation of About The Brand LLC, Art. of Org. filed Sec’y of State (SSNY) 5/16/12. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail copy of process to Mosaicon USA Inc., 530 Seventh Ave., Mezzanine Fl., NY, NY 10018. Purpose: any lawful activities. Notice of Qual. of Altum Capital Management, LLC, Auth. filed Sec’y of State (SSNY) 2/24/12. Office loc.: NY County. LLC org. in DE 6/18/08. SSNY desig. as agent of LLC upon whom process against it may be served. SSNY shall mail copy of proc. to Att: Marjorie Hogan, 681 Fifth Ave., 15th Fl., NY, NY 10022. DE off. addr.: CSC, 2711 Centerville Rd., Wilmington, DE 19808. Cert. of Form. on file: SSDE, Townsend Bldg., Dover, DE 19901. Purp.: any lawful activities.
Notice of Qual. of Altum Capital GP, LLC, Auth. filed Sec’y of State (SSNY) 2/24/12. Office loc.: NY County. LLC org. in DE 4/12/11. SSNY desig. as agent of LLC upon whom process against it may be served. SSNY shall mail copy of proc. to Att: Marjorie Hogan, 681 Fifth Ave., 15th Fl., NY, NY 10022. DE off. addr.: CSC, 2711 Centerville Rd., Wilmington, DE 19808. Cert. of Form. on file: SSDE, Townsend Bldg., Dover, DE 19901. Purp.: any lawful activities. Notice of Formation of NATIONAL PASTIME PRODUCTIONS, LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 09/10/12. Office location: NY County. Princ. office of LLC: c/o Richard Scanlon, 47 St. Marks Pl., #3, NY, NY 10003. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the addr. of its princ. office. Purpose: Any lawful activity. NOTICE OF QUALIFICATION of fleur de lis interior design llc. Authority filed w/ Sec of State of NY (SSNY) on 6/26/12. Office location: NY Co. LLC formed in CT on 2/5/02. SSNY designated agent upon whom process may be served and shall mail copy of process against LLC to prncpl bsnss addss: 916 pequot ave, southport, ct 06890. Cert of LLC filed w/ Sec of State of CT located: 30 trinity st, po box 150470, hartford, ct 06115-0470. Purpose: any lawful act.
NOTICE OF FORMATION OF New York School of Finance, LLC. Articles of Organization filed with the Secretary of State of NY (SSNY) on 7/5/2012. Office location: New York County. SSNY has been designated as agent upon whom process against it may be served. The Post Office address to which the SSNY shall mail a copy of any process against the LLC served upon him is: 14 Wall Street, 20th Floor, New York, NY 10005. The principal business address of the LLC is 14 Wall Street, 20th Floor, New York, NY 10005. Purpose: any lawful act or activity. Notice of Qualification of HIGHBRIDGE PRINCIPAL STRATEGIES MEZZANINE PARTNERS II GP, L.P. Authority filed with Secy. of State of NY (SSNY) on 09/07/12. Office location: NY County. LP formed in Delaware (DE) on 01/17/12. Princ. office of LP: Highbridge Principal Strategies, LLC, 40 W. 57th St., 33rd Fl., NY, NY 10019. SSNY designated as agent of LP upon whom process against it may be served. SSNY shall mail process to the LP at the addr. of its princ. office. Name and addr. of each general partner are available from SSNY. DE addr. of LP: Corporation Service Co., 2711 Centerville Rd., Wilmington, New Castle Cnty., DE 19808. Arts. of Org. filed with DE Secy. of State, Dept. of State, Div. of Corps., John G. Townsend Bldg., P.O. Box 898, Dover, DE 19903. Purpose: Any lawful activity.
Bavaria on Bowery to pay high retail rents for a manufacturing use,” owner Jon Bloostein explained. Mr. Tauscher believes he has an advantage, at least in terms of taste. He signed an exclusive licensing deal with Paulaner Brauerei, the 375-year-old brewery in Munich, to make its iconic beer in New York City following its own recipes and methods. It is Paulaner’s first such deal in the U.S., though it has scores of micropubs in Europe and Asia. “We hope the brewery increases the value of the brand in New York,” said Jürgen Schenk,managing director of Paulaner Bräuhaus Consult. Paulaner’s market share is a frac-
tion of the top-selling imported beers in the U.S., Corona and Heineken, according to Bill Earle, president of the National Association of Beverage Importers. Paulaner’s largest market in the U.S. is Denver, Colo., where Paulaner USA’s president began selling the brew out of his garage in the 1980s.
PROST: Paulaner beer, a German brand, will be brewed on the premises.
$5M investment Altogether, the project represents a $5 million investment, some of it Mr. Tauscher’s cash, but most from investors in Germany. Paulaner is providing the brewing equipment, including the large tanks that will be visible to customers while they eat and drink.
For Mr. Tauscher, 53, launching Paulaner NYC Brauhaus and Restaurant represents the end of his storied hotel career, which included opening the Trump International Hotel & Tower 16 years ago at Columbus Circle—and the beginning of his life as an entrepreneur. It
Real estate’s test Continued from Page 3
Both are a multiple of the average size of a building sold in the first half of the year, a comparatively diminutive 363,993 square feet. “People want to see if a building with a billion-dollar price tag will move,”said Nat Rockett,an executive vice president at Cushman & Wakefield. “If the answer is yes, you will start to see more come to the market.” For openers, sources said that Beacon Capital could be inspired to put 1211 Sixth Ave. back on the block. Beacon withdrew it last year when bids failed to reach the asking price of $1.9 billion. Others suggest the Blackstone Group may then offer up 1095 Sixth Ave.The last time two buildings sold for more than $1 billion each was as the market was cresting in 2007. Not since 280 Park Ave. fetched $1.1 billion in the spring of last year has any property fetched 10 digits.
Leasing activity down Back then, leasing activity was robust, and the financial meltdown in Europe had yet to cast a pall on the global economy. Today, potential buyers of big buildings are looking at a landscape where leasing activity is down about 25% from last year’s levels, and demand is further depressed by uncertainty over the U.S.election and the sputtering economic recovery. “Part of the problem for a seller is that leasing is flat, so potential buyers know that it will be hard to raise rents dramatically in the near term,” said Mark Edelstein, chair of law firm Morrison Foerster’s real estate groups. “There is financing out there for big deals, and liquidity helps drive prices up, but do investors want the big loans?” Dan Fasulo,managing director of Real Capital Analytics, thinks they will. He maintains that any concerns about the near-term economy are outweighed by the long-term track record of Manhattan real estate. “Those buildings will sell,” he said. They are unlikely to appeal to similar buyers because they have little in common besides their size and cost. Experts predict that 11 Madison
Ave.will likely have a harder time attracting a buyer despite its location in midtown south, the business district with the lowest vacancy rate in the entire country. Credit Suisse occupies 82% of the 30-story tower,but its lease expires in 2017.That means that unless the bank renews its lease, the building’s new owner would have to fill acres of empty space, a Herculean task despite the property’s much-in-demand setting. Some experts suggest that might limit buyers to those with a substantial tolerance for risk. The owners of the building, the Sapir Organization and CIM Group, didn’t return calls for comment. In contrast, buying Worldwide Plaza would be somewhat akin to buying a savings bond. Last year, the owners inked a huge lease with Japanese financial firm Nomura, bringing the occupancy rate up to 91%.What’s more, a new owner will have the opportunity to increase rents on the 175,000 square feet now on the market. Sources said that additional revenue could be had by revamping the building’s retail space now that the neighborhood is becoming more desirable as a residential area. The $1.5 billion price tag breaks down to about $790 per square foot, which is dramatically less than the $1,000 per square foot that Harry Macklowe shelled out for it at the top of the market in 2007.Two years later,a group led by George Comfort & Sons scooped it up for a mere $318 per square foot. Clearly, any new buyer will not get the sort of bargain that Comfort seized at the bottom of the market,but it is still a fat discount from the peak. “This demonstrates that in certain situations, there is still room to run before New York City trophy properties gain back all the value that was whipsawed by the credit crisis,” said Doug Harmon, senior managing director of Eastdil Secured, which is handling the Worldwide Plaza sale. “NYC big-ticket real estate is still a bargain.It’s just that most locals don’t exactly see it that way.”
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is a path most top hoteliers do not choose, because their lifestyle of traveling around the world and running luxurious properties is far more seductive than most other options. “I’d guess that less than 1% of GMs leave their jobs to start their own business, maybe at retirement,” said Drew Schlesinger, a veteran hotelier who just joined the Warwick New York Hotel as general manager. But when the Mandarin Oriental asked Mr. Tauscher to consider opening a property in Hong Kong, he realized he didn’t want to uproot his wife and two younger children. At the same time, he was ready to pursue his dream of starting a business. “I’m in my early 50s, and I thought, I have more energy and I don’t want to do this for another 10 years,” he added. Paulaner NYC got off to a shaky
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advertising-supported, Web-based mobile application that delivers its content for free. Mr. Smith believes the Quartz strategy is best suited to a media economy that is increasingly driven by shared links on Facebook and Twitter—and that The Economist and the FT are living in the past. “Their digital strategies are all about subscriptions, but they’ve in effect limited the visibility of their digital ventures,” Mr. Smith said. “We think there’s a great opportuni-
ty for somebody with equally intelligent, insightful journalism, commentary and analysis, but without the friction of a pay wall.” Quartz has intrigued observers with its ambitions and its business model, which is relying at first on four sponsors and will later include branded content and nonstandard ad units. But the venture faces stiff competition from larger enterprises. “The whole thing [depends] on whether the content is distinguished enough that people say, ‘I have to read this,’ ” said Ken Doctor,
start in April when its plans were challenged by Community Board 3, which was concerned about noise and congestion in the neighborhood. Mr. Tauscher has assured the board that his place “won’t be a boisterous drinking establishment.”
Traditional fare He will offer breakfast,lunch and dinner, serving traditional German, Austrian and Alsatian fare, including Wiener schnitzel, sausages, freshly made bread and soft pretzels. He is also in discussions with local producers to begin growing hops in upstate New York. “We are examining everything we can buy here,” said Mr. Tauscher. “We will be as local as possible.” LISTEN to a discussion at CrainsNewYork.com/podcasts
media analyst at Outsell Inc. And Quartz’s rivals’ approaches appear to be working. The Economist has so far successfully managed the digital transition, with the British magazine reporting record profits and circulation for its most recent fiscal year. The FT’s pay-wall strategy has kept revenue growing despite print ad declines. But Mr. Smith believes the landscape is changing, and that Quartz’s bet on social media as the engine of discovery will pay off.“If you assume sharing is the new form of content discovery, then introducing a brand that is free and therefore shareable into this global marketplace is going to be very powerful,” he said.
LISTEN to a discussion at CrainsNewYork.com/podcasts September 24, 2012 | Crain’s New York Business | 23
REAL ESTATE DEALS BARE BONES 106 UNIVERSITY PLACE
90 MAIDEN LANE ASKING RENT; TERM: $32 per SF; 10 years
ASKING RENT; TERM: $250 per SF; seven years SQUARE FEET: 550; ground and basement TENANT; REP: Bamboo Tori; Michael Hymowitz of Adams & Co. LANDLORD; REPS: GMC Parking; Helen Demetrious and Ina Donath of NY Commercial Real Estate Services BACK STORY: Japanese eatery replaces an Italian sausage spot on the hot strip between Union Square and NYU.
SQUARE FEET: 6,900; second floor TENANT; REPS: Bright Minds Center; Dmitry Levkov and Robert Koslow of Colliers International LANDLORD; REP: AM Property; in-house BACK STORY: Growing Russian language school doubles its footprint in downtown move.
METRO CENTER ATRIUM (Bronx) ASKING RENT; TERM: $50 per SF; 15 years SQUARE FEET: 43,000; ground and second floors TENANT; REP: L.A. Fitness; RIPCO Real Estate Corp. LANDLORD; REP: Simone Development Cos.; in-house by Joseph Kelleher BACK STORY: Initial retail tenant for 370,000-square-foot building where the Bronx’s first luxury hotel, a Marriott Residence Inn, will open in 2014.
Custom jeweler adds B’way bauble
astern Nationwide Supply Inc.is shifting slightly southwest into new office space in the garment district. The manufacturer of costume jewelry has signed a lease for 10,750 square feet on two floors at 1261 Broadway,at West 31st Street.The asking rent for the 10-year lease was $38 per square foot. “The company wanted to be close to 32nd Street,” said Brett Maslin, a broker at Adams & Co. Real Estate Inc. who represented the tenant. “Their current lease is up, and they needed more space.” Currently, the firm has 8,000 square feet at 22 W. 32nd St. It will move into its new office, which will take up part of the fourth and seventh floors of 1261 Broadway, by Nov. 1. “There wasn’t much available space out there [in the location the firm wanted],” said Mr. Maslin, adding that is why it decided on space on two floors. The landlord of the 11-story office building, Olmstead Properties, was represented in-house by Steven Marvin. —amanda fung
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24 | Crain’s New York Business | September 24, 2012
Private equity shop hits 42nd Street EQT Partners, a Swedish private equity firm, is opening its first New York City office in the Grace Building at 1114 Sixth Ave., which recently unveiled a newly renovated lobby. Currently located in White Plains, the firm leased about 9,100 square feet on the 38th floor.The entrance for the building is on West 42nd Street,across from Bryant Park. The asking rent for the 10-year deal, which covers about a third of the floor, was $95 a square foot. EQT opened its office in White Plains five years ago but decided to move to Manhattan to be closer to its clients and to establish a greater presence in the U.S. The main driver for the deal was the building’s central location, said Mike Movshovich, a broker at CBRE Group Inc. who represented EQT with Budd Wiesenberg, a colleague in Stamford, Conn. However, he noted that the new lobby “looks great and makes a great first impression.” The lobby was designed by Moed de Armas & Shannon and includes a new reception desk and two large paintings by Caio Fonseca. Wood paneling that had been put up sometime before Brookfield Office Properties bought the 41-yearold building in 2006 was taken down and replaced with travertine from the same quarry that supplied the original wall cladding. The new lobby was part of a nearly $30 million renovation that also upgraded the building’s plaza and retail space. Brookfield was represented inhouse by Sarah Pontius, vice president of leasing. —theresa agovino
INSIDE Source Lunch A rumrunner raises a glass to fight global poverty P. 26 Out and About Met Opera opens season P. 27
Gabelli gift lifts alma mater
—miriam kreinin souccar
NET GAINS: Since Tarek Pertew (left) co-founded the NYC Footy soccer league four years ago, it has grown to include 325 players, among them Mac Abad (right).
Soccer is the new golf As the once-sleepy game gains in popularity, networking happens on the field
BY MIRIAM KREININ SOUCCAR
t least once a week, Savannah Tikotsky stays in the office until 10:30 p.m., killing time until her coed soccer game starts at a field on the Lower East Side. ¶ On another night, she heads to Williamsburg, Brooklyn, to play a pickup game with a different group from 8 to 10 p.m. ¶ And on yet another weeknight, she practices with a third team—in a competitive women’s league—to get ready for their Sunday game. ¶ “I moved here five years ago from California and looked for a team as a way to get to know people,” said Ms. Tikotsky, a senior account executive at Feintuch Communications. “Since then, more and more leagues keep sprouting up, and there are pickup games everywhere people can find a field.” ¶ Forget softball, and don’t even think about golf. Soccer—long scoffed at by Americans for being a slow-moving, monotonous and low-scoring game—has become the first choice for recreation among many young professionals in New York. With the first generation to take part in the youth soccer boom now in their 20s and 30s, and the success of the U.S. women’s team in the World Cup and Olympics, the sport is enjoying a newfound See SOCCER on Page 26
This Thursday, Fordham will unveil a new 50,000-squarefoot building for its undergraduate business school. The building, in the heart of the university’s 85-acre campus in the Bronx, cost $38 million to renovate. It will now have the latest technology for education, lounge space on every floor and ample Bloomberg machines—not to mention a Roman fountain. It is only part of the business school’s efforts to boost its standing, however. As part of the institution’s capital campaign, renowned investor Mario Gabelli, chief executive of Gamco Investors Inc. and a Fordham alum, pledged $25 million, the biggest gift the university has ever received. The funds helped push the business school’s donations to $50 million, $10 million over its goal. In honor of his gift, it has been named the Gabelli School of Business. But instead of putting his money into brick and mortar like many philanthropists, Mr. Gabelli—who said this is the biggest single gift he has made yet—wanted his grant to help build the school’s faculty. “My heart and soul is based on education and giving back to help the system,” said Mr. Gabelli, who also contributes to Columbia Business School and Boston College, among others. “And what makes a good university is faculty.” His money will endow six faculty chairs, create a visitingprofessor program and support a new center for global value investing—a highly unusual program for an undergraduate business school. Donna Rapaccioli, dean of the business school, said Mr. Gabelli’s support has already put it on an upward trajectory. This year, the college received more than 7,100 applications for 395 spaces in its freshman class, up from 6,000 applications the previous year. “Mario’s gift certainly added to making Fordham a hot school, and this new facility is adding to that,” Ms. Rapaccioli said.
Number of sports played in NYC recreational leagues managed by ZogSports
600+ Number of soccer teams run by Zog
September 24, 2012 | Crain’s New York Business | 25
Soccer’s net gain Continued from Page 25
popularity among adults. Companies are forming teams to build workplace camaraderie, and new leagues and tournaments are being created to meet the growing demand. “There is a huge growth in adult organized leagues,” said Leonard Shostak, a business consultant who referees soccer games on the side.“It used to be that companies all had softball teams, but now they are switching to soccer.” There are no available statistics on the number of amateur adult players in the city, but soccer organizers say it’s well into the thousands. ZogSports, which manages recreational leagues in 13 different sports, runs more than 600 soccer teams a year in New York. Players can sign up individually or with their own team. Robert Herzog, who founded Zog, said he started offering soccer in 2003 and filled only 25 amateur teams the first season. Now it’s his fastest seller.
‘We sell out everything’ The prices at different leagues vary, but with Zog, individuals pay about $100 to $150 each season to play in a weekly game in a league. If you register your own team to be part of the league, it costs around $1,700. “We’ll put soccer on sale, and some of the most popular leagues, like a weeknight league in Manhattan, will sell out in a couple of days,” Mr.Herzog said.“We sell out every-
thing we offer with soccer because it’s so popular.” Tarek Pertew, co-founder of WakefieldMedia.com, decided to start his own soccer league with four friends a year ago.The league, NYC Footy, now has 325 players from a wide variety of professions, with a number of hip technology companies, such as Adobe and Etsy, signing on as sponsors. Shoaib Alam, a solutions architect for Adobe and the captain of its soccer team, said he originally tried to start a flag-football team at his company, but there wasn’t enough interest. The company’s coed soccer team has 13 players so far, but Mr. Alam expects that number to double this year. Overall, the number of interested players is growing so quickly that this fall, NYC Footy had to turn away more than 40 people because Mr. Pertew can’t get the permits he needs for more field space. “This is the biggest problem for leagues in New York,” he said. Mr. Herzog said he hasn’t been able to grow his soccer business further because there are no more fields. He lost room for about 50 players in 2007 when a big field on the City College of New York campus at West 133rd Street and Convent Avenue was closed to build a new science facility. Ms. Tikotsky said her women’s team plays on a field at East Sixth Street that is so badly damaged, she expects the city to close it down
soon.The New York City Parks Department did not return calls for comment. Still, soccer organizers say that overall there is a lot more playing space in the city than there used to be—and, most important, many of the new fields are turf and have lights. “Now you can play soccer from six in the evening until midnight at Pier 40 and Randall’s Island,” said Niall Swan, founder of Soccer Resort, a company in Hoboken,N.J.,that runs adult soccer tournaments all over the world, including three in New York.
Corporate Cup Mr. Swan has noticed a big increase in corporate teams, so much so that a year ago he started a new soccer tournament called the Wall Street Corporate Cup. The one-day event had 30 teams this July, double the number of a year ago.Companies that played included JPMorgan Chase, Bank of America and Google. One firm that participated, Squarespace, just recently started its first corporate soccer team. It was founded by Matt Haggerty, the company’s marketing director, who grew up playing soccer. The coed team is the only sports team the company has. Mr.Haggerty says soccer is an easy way for busy professionals to let off steam because games are quick and you don’t need a lot of equipment. “I don’t know a lot of people who play in softball leagues, and golf, in my mind, is from my parents’ generation,” said Mr. Haggerty, 35. “Soccer has a coolness factor to it.” 䡲 LISTEN to a discussion at CrainsNewYork.com/podcasts
JEFFREY ZARNOW by Jeremy Smerd
Living on $2 a day. Rum not included
effrey Zarnow didn’t intend to be a rumrunner. But a chance meeting inspired him to break from film producing to launch Starr African Rum, distilled on the island of Mauritius. Nelson Mandela’s former chief of staff persuaded him to make the corks, bottles and boxes in South Africa as a way for the New York-based entrepreneur to help the continent improve its exports and lift up millions of people who live on less than $2 a day. When a friend asked him to help produce the Global Citizens Festival,a music concert intended to raise awareness of extreme poverty, he said he’d invite his friends the Foo Fighters to play. A friendship with a classmate from his University of Pennsylvania days, former Deputy Mayor Edward Skyler, helped him navigate the red tape at City Hall. The Central Park concert is Sept. 29 on the Great Lawn.
So you are still a Hollywood producer, and now you’re a New York liquor seller. Which one is harder to make money at?
You’d think it would be easier making money on liquor, but for me it’s been the opposite. All the profits I’ve put back into the company. Still, last year was our third straight year of double-digit revenue growth. After the recession, there’s a sense that people don’t mind spending money, but they want to get something of value. Is that why we’re having a $2 lunch on a park bench near your apartment in the West Village?
Well, we’re still a startup. You still have that mentality of not wasting money. I thought it was because you’re raising awareness about poverty.
It is.The festival Saturday is to teach a whole new generation to think that our individual actions can make a difference. It’s a free concert, How’d you start your but you have to earn your business? ticket. You can sign a peOn a bench in the I knew nothing about tition. Or tweet or share it West Village, near the corner of West Mauritius other than it on Facebook. You earn 10th Street and was in Africa. I hated rum. points by doing these Greenwich I got sick on it in college. charitable acts. Then you Avenue It’s the one alcohol I get a lottery ticket, and a AMBIENCE: wouldn’t drink. But I took certain amount of tickets Depends on the a meeting that changed are chosen. weather and the my life. I tried the rum, as We want to let people traffic. Sunny and you are about to, and I was know that there are small mellow. blown away by it. Like so things you can do differWHAT THEY ATE: many people, I didn’t want ently. Maybe it’s having a 䡲 99-cent slice of to drink cheap booze any$2 lunch and donating pizza from Fresh more, for no other reason the money you would Pizza Villa Café than it gets you hung over. have spent. These little 䡲 Can of Coke things can go a long way. TAB: $2 each, It’s OK to brown-bag it? It’s possible to take acno tip I have a solicitor’s permit, tion.The Global Citizens which allows me to carry platform will live on long alcohol to give samples to people. after the festival. Doesn’t the rum make the Coke taste like a Cherry Coke? I hope I So Africa really affected you, huh? Africa is one of those places that didn’t make it too strong. breaks your heart and inspires you at Not at all! So what do you mix with a the same time. I wanted to see a posclear rum like this? itive thing for Africa. Not exploiting The Apothéke bar downtown it but helping to glorify the quality makes a drink called the Blue Mau- of the products they’re making. I ritius, which is blueberry, ginger and tasted the rum and fell in love with rum, and it’s phenomenal. It’s be- it, which is why I wanted to create come one of their top-selling cock- the Starr brand and take it global. tails. At the end of the day, people want a delicious cocktail. And our And who will be at the festival? restaurant partners say they want to Neil Young, Foo Fighters, the Black serve top-shelf items, liquor that Keys, K’naan and Band of Horses. It’s an incredible lineup. 䡲 they can’t get everywhere.
WHERE THEY DINED
INSIDE TIP: Rum and Coke on a bench is best consumed in a paper cup with ice. Bag the bottle. Hold the lime. 26 | Crain’s New York Business | September 24, 2012
OUT AND ABOUT
SNAPS New Yorkers come out for children, education
SATURDAY, SEPTEMBER 29 The Harbor Lights Theater Company will present a one-man show, CHAZZ PALMINTERI TELLS A BRONX TALE. It features true stories that inspired the actor’s Broadway play and film A Bronx Tale. All proceeds will benefit the company. The performance is at 8 p.m. at the Music Hall at Snug Harbor Cultural Center and Botanical Gardens, 100 Richmond Terrace, at Hamilton Avenue, Staten Island. Tickets start at $49 and can be purchased by calling (866) 811-4111 or by visiting www.theharborlightstheater company.org. VIP tickets, which cost $129, include a question-and-answer session with Mr. Palminteri and a cocktail reception.
THURSDAY, SEPTEMBER 27 THE NEW YORK TECH-SECURITY CONFERENCE will feature vendor exhibits and industry experts discussing current issues. Topics of conversation include modern cyberthreats, security systems and eliminating data security problems. It runs from 8:15 a.m. to 5 p.m. at Bridgewaters, 11 Fulton St., at the South Street Seaport. Tickets are $100 and include breakfast, lunch, conference materials and entrance to conferences and exhibits. For more information and to purchase tickets, visit www.dataconnectors.com.
WENDI MURDOCH at the New Yorkers for Children fall gala on Sept. 18. The event raised more than $1.4 million to benefit kids in foster care.
MONDAY, SEPTEMBER 24 VentureOutNY will host COMING TO AMERICA: IMMIGRATION, ENTREPRENEURSHIP AND THE ECONOMY, a conversation about how immigration policies make it difficult for foreign-born entrepreneurs to start their own businesses in the U.S. Speakers include Rep. Michael Grimm, who introduced the Startup Act into the House; Robert Greifeld, chief executive of Nasdaq; and Dario Mutabdzija, co-founder and president of Blueseed. It is at 6:30 p.m. at New York Law School, 185 West Broadway, at Leonard Street. Tickets are $20 for general admission. For more information, visit www.ventureoutny.com.
JOHN DEMSEY, group president of Estée Lauder Cos., and AERIN LAUDER at the New Yorkers for Children fall gala at Cipriani 42nd Street.
DON’T MISS MET OPERA OPENS SEASON MONDAY, SEPTEMBER 24 The Metropolitan Opera will open its 2012-13 season with a new production of Donizetti’s L’ELISIR D’AMORE, featuring Anna Netrebko, Matthew Polenzani and Mariusz Kwiecien. Though it’s one of the Met’s most popular comic operas, this is the first time it will be performed on opening night. It will also be transmitted live for free on large screens on Lincoln Center’s Josie Robertson Plaza and in Times Square. Tickets start at $30. Curtain time is 7 p.m. The theater is located between West 62nd and West 65th streets, and Columbus and Amsterdam avenues. For more information, visit www.metoperafamily.org.
WEDNESDAY, SEPTEMBER 26 Two exhibitions, MARVELS AND MONSTERS: UNMASKING ASIAN IMAGES IN U.S. COMICS, 1942-1986 and ALT. COMICS: ASIAN AMERICAN ARTISTS REINVENT THE COMIC BOOK, will open at the Museum of Chinese in America. Both explore the relationship between AsianAmericans and comic books, and both run through Feb. 24. The museum is located at 215 Centre St. Tickets to the museum are $7 for general admission, $4 for students and seniors, and free for members and children under 12. For more information, visit www.mocanyc.org.
TUESDAY, SEPTEMBER 25 Youth on the Move in the Community Inc. will host an INAUGURAL RECEPTION AND FUNDRAISER. Proceeds will benefit the group, which offers young people opportunities to engage in physical activity through organized sports. The event is at 5 & Diamond Restaurant, 2072 Frederick Douglass Blvd., at West 112th Street. Tickets start at $225. For more information or to become a sponsor, call (212) 726-1163 or email [email protected] THURSDAY, SEPTEMBER 27 NPower’s board of directors will host its 2012 gala, an EVENING OF POWERFUL CONNECTIONS. The evening’s honoree is Bill McDermott, co-chief executive of software company SAP AG. The event will begin at 5:30 p.m. at Metropolitan Pavilion, 125 W. 18th St. Tickets start at $3,000. Donations are tax-deductible. For more information, call Malika Vitet at (212) 444-7298, email [email protected] or visit www.npower.org.
(From left) DOROTHY HAMILTON, ROHINI DEY, MARTHA STEWART, SUSAN UNGARO, MARTHA TEICHNER and LIDIA BASTIANICH at the launch of Chefs for Women, an initiative to promote women in the culinary industry.
FRIDAY, SEPTEMBER 28, THROUGH SUNDAY, OCTOBER 14 The Film Society of Lincoln Center will host the 50TH NEW YORK FILM FESTIVAL, which opens with the world premiere of Ang Lee’s Life of Pi in 3-D. Films will be shown at several venues: Alice Tully Hall, 70 Lincoln Center Plaza, at West 66th Street; the Walter Reade Theater, 165 W. 65th St.; and the Elinor Bunin Munroe Film Center, 144 W. 65th St. Tickets for the main slate of screenings at Alice Tully Hall are $20 for members and $24 for nonmembers. For more information and to purchase tickets, visit www .filmlinc.com.
by Emily Laermer and Miriam Kreinin Souccar
Western Union Chairman JACK GREENBERG (left), his wife, DONNA, and Western Union CEO HIKMET ERSEK at the Institute of International Education’s awards gala on Sept. 18. The event raised $1.2 million for the IIE and $3 million for its Scholar Rescue Fund.
Jeffrey Marcus, Esq. Attorney at Law
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MARK YOUR CALENDAR … STARTING SUNDAY, NOVEMBER 11
TICKETS ARE ON SALE for the Broadway revival of GLENGARRY GLEN ROSS. The
production, starring Tony winner Al Pacino, marks the 30th anniversary of the play, written by David Mamet. Shows are at the Gerald Schoenfeld Theatre, 236 W. 45th St. Tickets start at $72 and can be purchased by calling (212) 239-6200 or visiting www.telecharge.com. For information, visit www.glengarrybroadway.com. September 24, 2012 | Crain’s New York Business | 27
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