Crain's New York Business by crains-new-york-business

ASKED & ANSWERED How an app is helping immigrants navigate the pandemic PAGE 10

CRAINSNEWYORK.COM

AUGUST 24, 2020

NOT EASY BEING GREEN Restaurants juggle sustainability goals with reopening PAGE 3

RACHMANY’S moving company has not seen the inflow of people he normally sees this time of year.

ECONOMY

I NEW YORK? NOT SO MUCH RIGHT NOW The normal influx of students, transplants and adventurers is on pause because of the pandemic BY AARON ELSTEIN

BUCK ENNIS

fter 20 years in Texas, financial executive Lisa Miller is ready to move back to New York. Or at least she thinks she is. Miller acknowledges having second thoughts. She wonders what the city will be like when the weather gets colder, outdoor restaurants disappear and residents could be confined to their apartments again. Moving to the world’s financial capital, where she started her career, could help Miller professionally, but maybe it’s smarter to stay in Texas. “New York is making me nervous,” she said. Her story illustrates the stricken city’s newest painful reality: Not only did thousands of residents move out during the lockdown, but almost nobody is moving back. In addition, the annual late-summer influx of new arrivals—young people coming to the city to attend college or start a career—has not materialized, another casualty of Covid-19. See NEW YORK on page 22

TRANSPORTATION

Taxi commission fails to regulate Uber and Lyft Ride-hail apps allowed to operate unlicensed for nearly two years

he Taxi and Limousine Commission recently began enforcing a city law that required Uber and Lyft to document their impact on the envi-

NEWSPAPER

VOL. 36, NO.28

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EDITORIAL Mayor and City Council must investigate TLC’s failure to implement the law Page 8

ronment and the cab industry following a Crain’s investigation and a nearly two-year delay. Local Law 149, signed by Mayor Bill de Blasio and enact-

ed Aug. 14, 2018, created the category of High Volume For Hire Services—companies that handle more than 10,000 rides a day—and required them to apply for a special permit through the TLC.

BUCK ENNIS

BY BRIAN PASCUS

See TAXI on page 17

OUT OF OFFICE

REAL ESTATE

10 SEAFOOD SPOTS IN THE CITY

Property sales, office leases see huge declines

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TECHNOLOGY

These are the jobs Amazon is hiring for ahead of its New York expansion BY RYAN DEFFENBAUGH

WEBCAST CALLOUT

BLOOMBERG

ech giant Amazon is hungry for new talent. That was true even before the company’s promise of a new hiring spree in Midtown, evidence that it sees all that the city can offer its talent pool. The company, which said it would hire 2,000 workers by 2023 for its new office at the historic Lord & Taylor building on Fifth Avenue, had already been hiring rapidly in Manhattan. Its promise of new jobs comes as part of a nationwide corporate hiring push, as Amazon’s value has soared since March thanks to a pandemic-driven rise in e-commerce sales. Separately from its Lord & Taylor hiring plan, the company currently has 830 jobs in New York City listed, more than 500 of which are allocated for software and technical engineering roles. This local focus is a shift from the traditional approach in which tech companies look to Silicon Valley’s talent pool to fill technology roles. “For years New York was just [Amazon’s] sales and marketing outpost outside of Silicon Valley,” said John Barrett, a partner at ON Partners, a technology recruiting firm based in Boston. “They clearly see now that there is a large tech pool right in New York City, and

that’s why there has been significant growth over the past five years.” Amazon’s new strategy prompted it to hire 1,700 New Yorkers in corporate roles last year, according to ON Partners—that’s more local hiring than Google and Facebook combined.

In demand Out of its current listings, solutions architect is the most common in New York, with 225 separate po-

sitions. The role involves both software engineering and business strategy to design and expand the company’s products. The e-commerce giant has in the past paid workers in those positions a $135,000 median salary, including bonuses and stock options, at the entry level, according to levels.fyi, a database where more than 30,000 tech workers have reported their salary. General software engineers are in demand for Amazon as well, with

212 active listings. The company offers about $161,000 in total compensation at the entry level for those jobs, according to levels.fyi data. The jobs pay well in part because they are difficult to fill, as described by Ardine Williams, Amazon’s vice president of workforce development. “There was a shortage of software development engineers, solutions architects and technical program managers before the pandemic,

and many of those skills are still in very hard demand,” Williams told the financial site Cheddar. Amazon also lists about 70 sales and advertising positions, as well as 50 business-development jobs. Company officials say Amazon has hired 175,000 people nationwide since the start of the pandemic—just a little bit less than the population of Yonkers. Many of those were warehouse jobs to meet demand from online shopping. Although the company backed out of a plan to eventually hire 25,000 people in Long Island City for its second headquarters, the new strategy in Midtown builds on efforts last year from the company to expand its Manhattan workforce. The company last year leased a 335,000-square-foot space from SL Green near Hudson Yards, an office that will open next year. ■

WE’LL BE BACK! Crain’s New York Business publishes a print edition every other week during July and August. Our next issue will be Sept. 7. Meanwhile, you can keep up with the city’s news every day by visiting our website, CrainsNewYork.com.

POLITICS

Pressure mounts on Johnson to push ahead with Industry City rezoning BY EDDIE SMALL

C AUG. 26 COMPTROLLER THOMAS P. DINAPOLI DISCUSSES THE STATE’S FINANCIAL CONDITION As New York faces the worst financial crisis since the Great Recession and double-digit unemployment, business owners need to know what government can do to help them survive. Comptroller Thomas DiNapoli will discuss the state’s financial condition and what it will take to weather the Covid-19-related downturn. Time: 4 to 5 p.m. CrainsNewYork.com/ AugBusinessForum

ity Council Speaker Corey Johnson is feeling the heat, as more support for the controversial Industry City rezoning emerges and city leaders urge him to move the project forward despite the objections of the local councilman. A group of 17 business and labor organizations have written Johnson a letter, urging the council to approve the rezoning. The signatories include Steven Rubenstein, chairman of the Association for a Better New York; Kathryn Wylde, president of the Partnership for New York City; and James Whelan, president of the Real Estate Board of New York. “As you said back in 2018 at the beginning of your speakership, council approval of a land-use project over the objection of a local member was ‘possible’ in the right circumstances and that your posture is always ‘How do we get to a place of yes?’ ” the letter says. “We

can think of no circumstances more demanding of a thoughtful and decisive ‘yes’ than the current crisis.” Councilman Carlos Menchaca, who represents Sunset Park, announced his opposition to the rezoning in late July. That typically spells doom for a land-use project given the council’s tradition of local-member deference, but that has not been the case so far with Industry City. The group stresses that Industry City, whose owners include Jamestown, Belvedere Capital and Angelo Gordon, has followed the process Johnson recommended while attempting to move forward with its rezoning. The team participated in “an unparalleled amount of public engagement” and worked with local groups to make sure Sunset Park residents would be ready and hired for the jobs the project creates, the letter reads. It is particularly important for the city to approve the project in light of the dire financial situation New York is in due to the pandemic, the

group argues in the letter. “This rezoning will facilitate the growth of more than 12,000 additional jobs and generate $100 million a year in desperately needed local tax revenue,” the letter reads. “No other private redevelopment project anywhere in the City of New York can match either this record of growth or its potential for continued investment and job creation.”

‘Inconvenient facts’ Menchaca criticized the letter as misleading, saying that Industry City could already create thousands of new jobs without a rezoning, and the signatories ignore fears that rezoning will lead to unaffordable rents in Sunset Park. “The business community has an interest in omitting these inconvenient facts,” he said, “but the council must not, since our responsibility is to our most vulnerable neighbors— not weak economic promises that have no accountability behind them.” Bronx Councilman Ritchie Tor-

res, Queens Councilman Donovan Richards and Brooklyn Councilman Robert Cornegy all came out in favor of the rezoning soon after Menchaca’s announcement and urged the council to move forward with it, mainly based on the economic benefits they said it could bring. The project’s developers “appreciate the support that the reactivation of Industry City is receiving from a broad cross section of people who care about New York’s future,” Industry City spokesman Lee Silberstein said. The City Planning Commission voted in favor of the rezoning on Wednesday, turning up the heat on Johnson, who has not responded. The Industry City team has been attempting to rezone the 16-building property for more than a year. The initial plan called for two hotels and 1 million square feet of commercial space. The effort has faced intense community opposition centered on concerns that it could displace local residents and small businesses. ■

Vol. 36, No. 28, August 24, 2020—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for bimonthly in January, July and August and the last issue in December, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, PO Box 433279, Palm Coast, FL 32143-9681. For subscriber service: call 877-824-9379; fax 313-446-6777. $3.00 a copy; $129.00 per year. (GST No. 13676-0444-RT) ©Entire contents copyright 2020 by Crain Communications Inc. All rights reserved. 2 | CRAIN’S NEW YORK BUSINESS | August 24, 2020

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CORONAVIRUS ALERT

WASTE NOT: Only 10% of the waste from Marcus’ restaurant ends up in a landfill.

RESTAURANTS

ECO-FRIENDLY B EXPENSE

efore Covid-19 struck, West~bourne, an all-day vegetarian café in SoHo, was focused on two things: serving its roughly 250 guests a day and making sure that 14 hours of service generated, on average, only a single landfill-bound bag of trash. Because of limited street frontage, West~bourne is not attempting to resume service with outdoor seating. Since March the deluge of dine-in guests has been replaced by a trickle of customers picking up pantry goods and bottles of natural wine. And founder Camilla Marcus remains as committed as ever to the restaurant’s zero-waste goal. “For us, zero waste is in our DNA, so we’ll figure

The high cost of earth-friendly practices and the proliferation of plastic are added hurdles for reopening restaurants

See EXPENSE on page 18

MICHAEL MAGERS PHOTOGRAPHY

BY KIM VELSEY

REAL ESTATE

Property sales, office leases see huge declines Both types of deals were down about 40% compared with 2019

ew York saw a handful of pricey property sales and sizable office leases during the first half of 2020, but numbers in both categories plummeted compared with the same period in the previous two years as a result of the pandemic. According to data Crain’s analyzed from Real Capital Analytics and CoStar Group (see The List, starting on page 11), overall, the top

25 property sales for the first half of the year were worth about $6.1 billion. This is almost a 40% drop in sales volume compared to 2019, when the top 25 sales from January through June were worth about $10.1 billion. And the 50 largest office leases spanned about 4.8 million square feet during the first six months of 2020; during the same period last year, the top 50 office leases totaled about 8.3 million square feet. There was a 42% drop in office leasing year

over year. The declines were even sharper compared to 2018, when the top 25 sales for the first half of the year were worth about $11.5 billion and the top 50 office leases spanned about 8.9 million square feet. Both figures were down by nearly 50% this year. Investment sales were already slowing in New York before Covid-19 hit, especially for residential buildings and hotels, said RCA

LARGEST SALE: Amazon’s purchase of the Lord & Taylor building at 424-434 Fifth Ave. for $978 million

BLOOMBERG

BY EDDIE SMALL

See DECLINES on page 18 AUGUST 24, 2020 | CRAIN’S NEW YORK BUSINESS | 3

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EDUCATION

How the city’s $50,000-a-year, elite private schools are reopening BLOOMBERG

BROWNING

FIRST DAY OF SCHOOL Sept. 9 SIZE 400 boys in grades K–12; 65 teachers LOCATION East 62nd Street TUITION $54,150 The Browning Flex plan will have K–5 students return to school full time. Grades 6–8 and 9–12 will alternate weeks between in-person and remote learning. Families that have chosen to start with online learning can switch to in-person learning after Thanksgiving. Every classroom will have a

COLLEGIATE

FIRST DAY OF SCHOOL Sept. 8 SIZE 661 boys in grades K–12; 108 teachers LOCATION 11 floors between West 61st and West 62nd streets near the Hudson River TUITION $55,900 For now Collegiate plans a mostly remote start, with on-campus instruction reserved for its youngest students. The middle school and upper grades will be phased in during the next month. But nothing is set in stone. “In all candor, a final announcement of our reopening plan could come as late as the Labor Day weekend,” school director David Lourie wrote to parents July 30. For safety, the school has created three isolation rooms, hired a second nurse and upgraded its ventilation systems. Younger children will have a Plexiglas shield at their desks, and older ones will carry theirs from room to room as needed. To return to school, students will need to provide a negative Covid-19 test. Parents must complete a daily health check as the “ticket” for a child to enter the building.

JIM HENDERSON

HORACE MANN

FIRST DAY OF SCHOOL Sept. 8 SIZE 1,800 students from nursery school through 12th grade; 263 teachers LOCATION An Upper East Side townhouse, plus more than 18 acres in Riverdale TUITION $55,200 (fees for books, lunch, etc., not included) Horace Mann plans to start in person to give teachers and students a chance to get to know one another before going online, which might happen between Thanksgiving recess and mid-January. A remote option is available under certain circumstances, such as a serious preexisting medical condition, and must be approved by Aug. 24. For safety, the school is putting an antibacterial film on desks, hand-

BLOOMBERG AJAY SURESH

NIGHTINGALE-BAMFORD

FIRST DAY OF SCHOOL Sept. 9 SIZE 685 girls in grades K–12; 115 teachers LOCATION East 92nd Street TUITION $54,750 Children in grades K–6 will go to school full time in the fall, while older students will learn remotely some days. At those times, they’ll have access to an off-campus study hall if they reserve a spot in advance. For anyone who has Covid-19 symptoms, there’s an isolation room in the nurse’s office equipped with a photocatalytic oxidation air purifier. Families must sign a “community pledge” to follow safety protocols both in and out of school. For example, if any family member travels back from a hot spot, the entire family must quarantine for 14 days. School uniforms are optional this year. Instead, younger students may wear a white shirt with navy pants or leggings. For those in middle school, any navy or gray skirt or pants will do.

RIVERDALE COUNTRY

FIRST DAY OF SCHOOL Aug. 24 SIZE 1,200 students from pre-K through 12th grade; about 240 teachers LOCATION 27.5 acres in Riverdale TUITION $50,045 (fees for books, lunch, etc., not included) Riverdale is starting school with all-remote classes, two weeks earlier than usual. Students get to spend two hours each week on the campus, which has 51 outdoor class-

room tents. The schedule will help kids “get used to the new protocols and understand the new ways in which school life will work,” according to the website. After Labor Day, the school plans to opt for a hybrid schedule or go all-remote, depending on how prevalent the virus is in the community. Sports competitions have been canceled for the fall. Under the hybrid plan, half the students in the lower school will be on campus at a time, with the others using Zoom. Middle schoolers will be in two days each week, and high schoolers, one or two days a week. A few students are expected to be remote all the time. The school might switch to all-remote when flu season starts and when it becomes too cold to hold classes outside. Free protein bars are available for breakfast; lunch is “grab and go.”

AJAY SURESH

FIRST DAY OF SCHOOL Sept. 9 SIZE About 1,300 students in grades K–12; 250 teachers LOCATION East 91st and East 89th streets, and a gym on East 87th TUITION $54,180 The school plans to start the first trimester with a mix of on-site and remote learning. All teachers, however, will conduct classes virtually. Lessons will be streamed on students’ computers or the classroom whiteboard using Zoom. Special classes, such as chess, will be taught online. First priority for in-school learning will go to K–4 families with “students who do not have a supervised space at home where they can attend their digital classes” or need direct teacher support. Older students will have a chance to come to campus to connect with one another and their teachers. The school year might extend later into June.

SPENCE

WIKIPEDIA

BROWNING

FIRST DAY OF SCHOOL Sept. 10 SIZE 760 girls in grades K–12; 140 teachers LOCATION Two buildings on East 83rd Street and a field house on East 87th Street TUITION $53,990 Brearley plans to bring all students back next month at the same time. Its new building, opened last year and partly funded through a $100 million capital campaign, has an outdoor play space that might be converted into classrooms. Some long-serving associate teachers were made head teachers to handle the increased need. Students will have a designated drop-off time, though working parents can bring their kids in at 7:15 a.m. Students who can’t wear a face mask for medical reasons will be placed in distance learning. The school hired Bank Street College to train its teachers in “trauma-responsive school routines and restorative practices” for its students.

rails and doorknobs. Performances and athletics can be live-streamed. The school is asking all students and faculty to pass a Covid-19 test before coming to school.

DALTON

JIM HENDERSON

BREARLEY

Meeting Owl camera, which provides a 360-degree view, reacts to sound and focuses on whoever is speaking, so remote learners can follow along. (The school bought 45 of the cameras, which start at $799 on the Owl Labs website.) The school has rented space in the nearby French Institute/Alliance Française to accommodate its fourth- and fifth-graders. There, they’ll have their own private entrance staffed by a member of the school’s security team. Boys in fifth grade and up may dispense with the usual blazer and tie. In the lower school, students will form nineto 12-person pods, which will prioritize friendships. Specialty classes, such as music and computer science, will be taught in person over two-week periods.

COLLEGIATE

CRAIN’S

alton plans to stream teachers on Zoom even when students are in the classroom. At Collegiate, older students will have custom-made Plexiglas desk barriers they can carry around from class to class. And Horace Mann is looking to buy specially made masks for its choir. New York City’s elite private schools can seem like a world apart in normal times, but in the age of Covid-19, those differences are all the more glaring. The public school system, the largest in the nation, is struggling to find a way to teach its 1.1 million students safely as it faces steep budget cuts and possible shortages of everything from teachers and nurses to protective equipment. The city’s smaller and richer private schools have no such problems with resources. Instead, at $50,000 per year or more, the institutions must contend with the demands and expectations that come with parents whose pockets are deep enough to pay that much in tuition. “The reality is, there is no universal approach to reopening schools at this moment, just the best model for each school community,” Bodie Brizendine, who leads Spence, a private all-girls school on the Upper East Side, wrote to parents. Here’s a look at how eight private schools in New York are planning to reopen in the fall.

FIRST DAY OF SCHOOL Sept. 8 SIZE 750 girls in grades K–12; 128 teachers LOCATION East 91st and East 93rd streets, plus a building on East 90th Street nearing completion TUITION $57,385 Spence plans to start with remote learning, except for select in-person visits geared toward community-building. Grades K–4 will have the option to start at the school in October, pending city and state directives and the school’s own risk assessment. Older students might begin going back during the winter. To maintain social distancing, libraries have been turned into classrooms. Middle- and upper-school students won’t get lockers. The school is offering tuition assistance for those in need because of the pandemic. Parents have set up an emergency fund to help faculty, staff and other families. Spence’s plan states it can’t guarantee that no one will be exposed or infected while at school and can’t be held liable for the exposure or infection of employees, parents, guardians, students, vendors, service providers and visitors. ■

4 | CRAIN’S NEW YORK BUSINESS | August 24, 2020

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CORONAVIRUS ALERT HEALTH CARE

Whether gym-goers stay safe from Covid is up to them, health experts say If exercisers wear a mask and keep their distance, it’ll lower the risk of transmission

he gym-reopening guidance recently announced by Gov. Andrew Cuomo provides rigorous enough measures to mitigate the risk of Covid-19 transmission, but the task of staying healthy ultimately falls on patrons, who must observe the rules, infectiousdisease experts said. The governor announced that gyms and fitness centers in the state will be able to reopen as soon as Aug. 24 under certain guidelines, including operating at one-third of the occupancy limit, updating air-ventilation systems and enforcing mask-wearing and socialdistancing rules. (Mayor Bill de Blasio, however, said gyms in the city will not be able to reopen until a fair and rigorous inspection system is in place.) Gym-goers’ level of coronavirus risk comes down to whether they wear a mask and stay 6 feet apart,

said Dr. Waleed Javaid, director of infection prevention and control at Mount Sinai Downtown. It’s not just about gyms reducing capacity, as the risk of transmission can be high whenever people are exercising close to one another, said Dr. Scott Weisenberg, director of the NYU Langone infectiousdisease fellowship program. The screening of gym members at the door to ensure they do not have Covid-19 symptoms will be one of the key pillars in mitigating risk, Javaid said. While asymptomatic transmission is possible, its airborne risk is lower than with symptomatic individuals, he said. People breathe heavier as they exercise, so areas where people are forcefully inhaling and exhaling, such as indoor cardio classes, need access to good ventilation, Weisenberg said. Having filters that are rated Merv-13 is a useful add-on, though not necessarily essential for safety,

Javaid said. The majority of Covid-19 transmission is through droplet spread at about 6 feet or closer, and if droplets travel through air ducts and filters, the risk of spread is lowered significantly, he said.

Staying proactive Both experts agreed that gymgoer mingling remains the highest risk factor, and said gym management and patrons both need to be vigilant about keeping their distance and keeping their mask on properly. “We are proactively going to communicate by email, social media, club signage and when members sign in that social-distancing rules will be enforced,” said Chad Waetzig, executive vice president of marketing and branding at Crunch Fitness. He added that all company-owned Crunch locations should be ready to reopen the week of Aug. 24. As of last week, 90% of the loca-

BLOOMBERG

BY SHUAN SIM

tions had Merv-13 filters in place, he said. Even as gym owners celebrated the green light from the governor, there is an ongoing class-action lawsuit against Cuomo and the state. As part of an attempt to recover financial losses incurred by Cuomo’s decision to leave gyms

Delivering best-in-nation care—for every New Yorker

closed for months, there will be an evidential hearing seeking to prove that the losses stemmed from a governmental undertaking, said James Mermigis, an attorney representing more than 1,500 gym owners across the state. But the hearing, which is not yet scheduled, may have to wait until the pandemic is over for the extent of the damage to be clear. ■

U.S. News & World Report recently named 5 Northwell hospitals among the very best in the country, recognized for top care in 20 specialties. From orthopedics to cardiac surgery, we’re here to provide greater access to world-class services no matter where you live. Because when every New Yorker is cared for, we can overcome anything and truly thrive—together. Northwell.edu/NationsBest

Northern Westchester Phelps

Glen Cove

Mather Hospital

Peconic Bay

Huntington

Syosset North Shore Lenox Hill University Plainview Southside Long Island Jewish LIJ Forest Hills South Oaks Cohen Children’s Nassau Maimonides Medical Medical Center University Medical Center (Affiliate) Center (Affiliate) LIJ Valley Stream Staten Island University (North) Staten Island University (South) Zucker Hillside

*North Shore University Hospital and Cohen Children’s Medical Center: Ranked in 9 specialties each; Long Island Jewish Medical Center: Ranked in 5 specialties; Lenox Hill Hospital: Ranked in 3 specialties; and Huntington Hospital: Ranked in 1 specialty

August 24, 2020 | CRAIN’S NEW YORK BUSINESS | 5

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IN THE MARKETS

Oops! Citi says it sent lenders $900 million by mistake The bank heads to court as some recipients refuse to return the windfall

“THE COMPLEXITY OF SUCH TRANSACTIONS MEANS ERRORS DO OCCUR AT TIMES”

rather than as opportunities for unscrupulous actors to seize massive windfalls.” Think about that for minute. A major financial institution is saying it can’t do the basics of its job right. It’s hard to believe regulators will accept that argument. No wonder the bank is pleading with a judge to take its side.

Finders keepers? Bank errors in a customer’s favor are fairly common. The American Bankers Association recommends returning the money before banks start asking questions, because keeping it could be akin to theft. Of course, most bank errors don’t involve hundreds of millions of dollars. Brigade believes “it is not at all clear that the funds were sent as a result of a ‘clerical mistake,’ ” according to Citi’s lawsuit. “Moreover, whether sent in error or not,” it isn’t returning the found money, which amounts to $174,651,498. Brigade has argued that the amount Citi sent it was the full amount of its outstanding loan to Revlon.

BLOOMBERG

ne of the best cards to Management and some others. Citi draw in the board game said the New York–based hedge Monopoly reads “Bank fund had unlawfully attempted to error in your favor: Col- “capitalize” on the mistake. “Brigade’s actions are not just lect $200.” Citigroup recently acknowledged that it committed a unconscionable,” Citi said in its monumental bank error, in which suit, “they threaten the integrity of one lucky party collected almost the administrative agency function and the trust in the global banking $175 million. system.” The screwup, which Actually, it could be arthe bank describes as an “operational mistake,” gued that sending $900 raises questions about million in error would how Citi goes about its undermine trust in the everyday business of banking system more moving money around than receiving it and rethe globe. fusing to send it back. “I do not believe that Citi’s blunder is much there is anything like a smaller than JPMorgan clerical error in any bank AARON ELSTEIN Chase’s $9 billion “Lonin the 21st century,” said don whale” loss eight Odeon Capital analyst years ago. Nor is it as costDick Bove, who last week down- ly as Nick Leeson’s market bets that bankrupted Barings Bank in 1995. graded Citi’s stock to “sell.” The blunder happened two But Citi’s situation seems at least weeks ago, when Citi sent lenders as serious as those involving rogue traders. In court papers, the bank attributed its error to the nature of modern finance, in which zillions of transactions take place every of Revlon $900 million. That was day. “The velocity and complexity of more than 100 times larger than intended, the bank said in a lawsuit such transactions means that hufiled recently in federal court in man and technological errors do Manhattan. Some of the parties occur at times,” Citi said. “The legal who received the money have re- system needs to treat these as what turned it, but not Brigade Capital they obviously are—mistakes—

In a court filing, Brigade said about 40 parties received money from Citi, and most have refused to return it. “For some strategic reason, Citibank has chosen to sue only Brigade,” said the hedge fund’s attorney, Robert Loigman of Quinn Emanuel Urquhart & Sullivan. By the next day, Citi had made

that argument moot. It sued two more hedge funds, HPS Investment Partners and Symphony Asset Management, which received $127 million and $110 million, respectively, Citi said. The litigation figures to drag on for a long time. Well before then, heads surely will roll at Citi. How far up the organization will they go? ■

COMMERCIAL REAL ESTATE

Legislators float property-tax break for lease renegotiations BY NATALIE SACHMECHI

tate legislators last week proposed a law that would give commercial property owners a long-term tax break if they agree to renegotiate leases with their small-business tenants. Under the proposal, renters would be offered so-called recovery leases, lasting at least 10 years and with limited annual hikes, and the landlords would be eligible for property-tax abatements. Commercial tenants restructuring their current lease or those entering into a new lease for space left vacant for reasons other than eviction would be eligible to enter into a recovery lease, according to the bill. “It is long overdue that we put into place relief measures to protect our small businesses that are at risk of closing or laying off employees,” said Assemblywoman YuhLine Niou of Manhattan. “If we do

not put this legislation in place, forward-thinking tool that will be more of our small businesses, essential for the rebuilding and rewhich are mostly immigrant- covery yet to come.” owned, run the risk of closing and “The possibility of negotiating a leaving our neighborhoods with- recovery lease with my landlord out the resources and vibrancy we and affording him the benefit of real estate property-tax relief is a need.” win-win situation,” said Amy Fon‘A new path’ da Sara, owner of Zuzu’s Petals, a The bill also would give the city Brooklyn flower shop. Small businesses have felt the room to add incentives or restricbrunt of the pandemic’s impact on tions as it sees fit. City Councilman Brad Lander of the city’s economy. More than half of them are worBrooklyn is working with the Brooklyn Chamber of Commerce, ried about permanently shuttering, the New York Hospitality Alliance according to a Brooklyn Chamber and other groups to create the pro- of Commerce survey. With continued restrictions on gram’s specifics. “With federal relief uncertain, capacity and indoor dining, the we are proposing a new path for city’s restaurants and bars are long-term stability and affordabili- struggling for survival. More than three quarters of ty for small commercial tenants,” Lander said. “By providing tax re- them did not pay their full July rent, lief for commercial property own- according to a New York Hospitaliers, we can help small businesses ty Alliance report, and 37% of them lock in rents at stable, lower rates, a didn’t pay rent at all. ■

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FINANCE

City finances need more oversight, DiNapoli says Thomas DiNapoli New York state comptroller INTERVIEW BY AARON ELSTEIN

ew York state Comptroller Thomas DiNapoli recently issued a grim report on the state of the city’s finances. Broadway is shuttered. Tourism has ground to a halt. Restaurants are in trouble. Although Mayor Bill de Blasio and the City Council managed to cobble together a working budget for this fiscal year, next year the Big Apple’s coffers will be short an estimated $4.2 billion. The comptroller recently spoke to Crain’s about what can be done to alleviate the state and city budget crunches. He also talked about the state pension plan, a $200 billion pot of money of which he is sole trustee.

As the economy reopens, we hope to see improvement in revenue, but the discussion now is really what kind of support will we get from Washington. Until we know how that’s resolved, we’re in a very problematic and challenging situation, and we could see significant budget cuts at the city and state level.

The mayor has announced plans for 22,000 job cuts.

That’s what’s on the table without aid from Washington. There could be significant cuts in state aid to cities, which could affect how we address the public health crisis and could make a difficult situation even worse.

Do you think the Financial Control Board should take a greater role in city finances?

discussion at the meeting that we had earlier in August identified the issues, raised the concerns, but there was certainly no strong point of view that as of August 2020, the city needed a “hard” oversight.

NY STATE COMPTROLLER OFFICE

Any signs of hope on the horizon for the city’s and state’s budget crises?

Would you favor legalizing marijuana to raise revenue?

I’ve said in the past it shouldn’t be done just as a revenue raiser; there are social issues to consider. Maybe it’s part of the solution along with surcharges on income taxes or sales taxes.

The state pension plan had a 2.7% loss last fiscal year, and the Empire Center said municipalities and school districts would have to contribute $320 million more so the fund can meet commitments to retirees. What can be done about that?

We’re not sure what the costs will be yet, but the good news is, the Common Retirement The board just had its annual Fund is one of the best-funded meeting, and the consensus plans in the country. The fund “WE COULD SEE SIGNIFICANT had a small loss, but that reflects BUDGET CUTS AT THE CITY the state of the markets when the AND STATE LEVEL” fiscal year ended in late March. It has rebounded since. was to meet more often. But the law was changed many years ago, and the board can John Bogle used to say, go to a “hard supervisory” “Nobody can control the role only by an act of the market, but you can control Legislature. The control board costs.” Maybe one way for the by itself can’t assert more pension plan to lower costs direct authority like when it was would be to invest less in created in the 1970s. private equity? It’s true the fees for investing in private equity and real estate Maybe the law needs to be are higher than for stocks. But changed. it wouldn’t be wise for the fund The Legislature could say the to invest only in stocks, and it’s board goes to “hard” status hard to make money in bonds without changing the law. when interest rates are so low. I’m not making the case for doing Do you think the city needs more in private equity, but our more state supervision? portfolio there returned 11.6% It would be fair to say that the over a fiscal year when domestic board thinks we need more equities fell 8.8%. It has worked oversight of the city’s finances well for us even with the fees. than we have now. But the

CRAIN’S FORUM ON THE ECONOMIC IMPACT OF COVID-19 TO HEAR MORE from state Comptroller Thomas DiNapoli on the pension fund and the forecast for the state and city budgets, check out the Crain’s New York Business forum on Wednesday, Aug. 26, from 4 to 5 p.m. To register, please visit CrainsNewYork.com/eventsregistration.

The New York City pension funds and Calpers often try to put pressure on companies when it comes to boardroom matters or social matters. Why doesn’t the state fund do that?

We speak softly, and we do carry a big stick. We have an active corporate engagement program on things like executive compensation, diversity issues and environmental matters. Just this month we were named co-lead plaintiff in a lawsuit against Boeing. But we don’t spend much time on the PR end.

Our top priority is your bottom line. Count on your Construction advisors to help you reach your business goals. grassicpas.com/constructionae

I’m sure plenty of people would like the fund to invest less in oil companies and fossil fuels.

We’re investing in climate solutions, and earlier this year we divested from 22 coal companies because we didn’t think they’ll survive. But we don’t manage the pension fund from the perspective of a slogan or political agenda. ■ August 24, 2020 | CRAIN’S NEW YORK BUSINESS | 7

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president K.C. Crain senior executive vice president Chris Crain group publisher Mary Kramer

EDITORIAL

associate publisher Lisa Rudy

Investigation needed into TLC’s failure to implement ride-hailing law

EDITORIAL editor Robert Hordt assistant managing editors

Christine Haughney (special projects), Janon Fisher, Gabriella Iannetta (digital)

Lyft filled a niche in a city where you might have had a better chance of winning the lottery than catching a cab during a rainy evening rush hour in Midtown. And they were a relief to Black and brown communities, which often have trouble hailing yellow cabs because of the color of their skin. Unfortunately, the ride-hail companies evolved to offer too much of a good thing. Their popularity led to oversaturation, which in turn caused the value of one of the most stable assets for many immigrants—the taxi medallion—to plummet. Meanwhile, two-thirds of Uber and Lyft drivers—many of them people of color—worked full time, but 85% were not earning a living wage, the City Council found. Add to that a predatory lending practice for medallion purchases and the results were ruined driver finances and fleet companies and, eventually, suicides. The law required app-hail companies to apply for a special license and submit records on their environmental impact and their effect on the economics of the cab business.

IN EFFECT,THE TLC TOOK IT UPON ITSELF TO OVERRULE THE MAYOR AND THE COUNCIL rated taxi business. Fast-forward to 2014, when app-based ride-hail companies disrupted the industry. They were an example of innovation meeting need, and they represented the entrepreneurial spirit. Uber and

Frederick P. Gabriel Jr.

senior editor Telisha Bryan associate editor Lizeth Beltran (digital) art director Carolyn McClain photographer Buck Ennis data editor Gerald Schifman senior reporters Aaron Elstein reporters Ryan Deffenbaugh, Gwen Everett,

Jennifer Henderson, Brian Pascus, Natalie Sachmechi, Eddie Small contributors Ronald DeCicco,

Cara Eisenpress, C. J. Hughes, Steve Krupinski, Danielle McManus Sladek, Mark Yawdoszyn to contact the newsroom:

www.crainsnewyork.com/staff 212.210.0100 685 Third Ave., New York, NY 10017-4024 GETTY IMAGES

wo years ago, in the wake of a half-dozen suicides by members of the yellow-cab community stressed by their financial woes, the City Council signed a bill aimed at leveling the playing field in the industry. As a Crain’s investigation found (see p. 1), the promise of that law, however, was delayed for nearly two years because the Taxi and Limousine Commission failed to properly implement it. Under the legislation, Uber and Lyft were subject to some of the same regulations that governed the city’s taxi industry. The city’s chief regulatory instrument has been the medallion system, which was created in 1937 to calm a chaotic, oversatu-

publisher/executive editor

But then the TLC slammed on the brakes, allowing the law to go unenforced. In effect, the TLC took it upon itself to overrule the mayor and the council, allowing Uber and Lyft to operate unfettered while yellow cabs were subjected to city regulation. That should not be. Competitors in the same industry should be equally subject to the law. Government should not tip the

scales to favor one company over another. This spotlights, once again, how Mayor Bill de Blasio is administering city government. The law’s sponsor, Councilman Rubén Díaz Sr., has called on the attorney general to investigate, but the mayor and the council have been silent. De Blasio and Council Speaker Corey Johnson need to get to the bottom of what happened. ■

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OP-ED

When big banks failed, small lenders saved small businesses

REPRINTS director, reprints & licensing Lauren Melesio,

212.210.0707, lmelesio@crain.com PRODUCTION production and pre-press director

Simone Pryce media services manager Nicole Spell

DANIEL MARSH

n Aug. 8, the Paycheck Protection Program—the federal government’s flawed but necessary small-business emergency lending program—came to an end. Designed to keep people employed through the initial Covid-19 crisis, the program was never meant to be a small-business recovery plan. But what comes next is still unclear. What the program did and didn’t do, however, provides a road map for how best to help small businesses access the capital they need to transition from crisis to recovery. What’s more, “recovery” must be more than just a return to normal; even before the pandemic, many small businesses were struggling—especially in low- and moderate-income communities. The first lesson learned from PPP is that very small businesses, especially those owned by women

and minorities, do not have strong ties with large, traditional banks.

Hyperlocal After a lot of pushing by the economic development community, the Treasury Department allowed Community development financial institutions to participate as lenders in the second round of PPP, but only set aside $10 billion out of more than $500 billion total. Despite the late start and low capitalization, CDFIs were far more successful at providing PPP loans to businesses in low- and moderate-income communities, which are more likely to be women- and minority-owned businesses. The numbers are clear: while 27% of all PPP loans went to lowand moderate-income communities, for us that number is 71%. The second most important lesson learned is that CDFIs and non-traditional lending institutions are also better able to reach nonprofits businesses. Nonprofits

are not usually thought of as small businesses, but that is in fact what most of them are—mission-driven employers of people who provide essential services. With dire predictions of small-business loss across the country and unemployment concentrated in disadvantaged neighborhoods, the next recovery bill needs to include a much larger capitalization for CDFIs to reach as many small businesses and nonprofits as possible.

National model New York state has created, while still in its infancy, a potential national model, the NY Forward Loan Fund, to address these issues. The state acts as an aggregator of capital from all sources—including big banks, small banks, credit unions, foundations and the like—but centers CDFIs as the lenders. The loans are low interest (3% for private business and 2% for nonprofits) and have a five-year

payback window. The funds can be used for any working capital business activity, not just keeping people on the payroll. So as Congress continues to debate the next recovery bill, we have to push for more strategic thinking about how to meaningfully strengthen our small-business sector. To this end, a federal loan program needs to look more like the NY Forward Loan Fund in terms of its low-cost, patient capital that can be used for any business expense. The federal program, however, should include some percentage of forgiveness for disadvantaged businesses—NY Forward does not—and it must operate on the scale of PPP. But perhaps more important, it has to include the entire financial ecosystem, not just large banks. ■

SUBSCRIPTION CUSTOMER SERVICE

Daniel Marsh is the president of the National Development Council, a nonprofit founded in 1969 and headquartered in the city.

chairman Mrs. G.D. Crain Jr. [1911-1996]

www.crainsnewyork.com/subscribe customerservice@crainsnewyork.com 877.824.9379 (in the U.S. and Canada). $3.00 a copy for the print edition; or $129.00 one year, for print subscriptions with digital access. Entire contents ©copyright 2020 Crain Communications Inc. All rights reserved. ©CityBusiness is a registered trademark of MCP Inc., used under license agreement. CRAIN COMMUNICATIONS INC. chairman Keith E. Crain vice chairman Mary Kay Crain president K.C. Crain senior executive vice president Chris Crain secretary Lexie Crain Armstrong editor-in-chief emeritus Rance Crain chief financial officer Robert Recchia founder G.D. Crain Jr. [1885-1973]

8 | CRAIN’S NEW YORK BUSINESS | AUGUST 24, 2020

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OP-ED

BY ALESSANDRA BIAGGI AND RON KIM

ecently Gov. Andrew Cuomo signed a bill passed by the Legislature to roll back part of his negligent immunity policy for his nursing home executive donors— more than 6,600 deaths too late. While the bill restores New Yorkers’ rights and protections moving forward, it does not provide justice for the thousands of families grieving the deaths of their loved ones, nor does it address the immunity offered to health care providers for non-Covid-19-related services. To prevent another tragedy, we must invest in a safe alternative for

HOME CARE OFFERS A PROMISING ALTERNATIVE New York’s seniors: home care. As New Yorkers, the thought of our aging loved ones living in a nursing home after this pandemic sends a shiver down our spines—as it does for millions across the state. Before Covid-19, many of these for-profit health care facilities were already on notice. For years the nursing home sector has put profit

over people. Executives have sat on huge profit margins while staff are chronically underpaid. With the scant support nursing homes received from the state with the arrival of Covid-19, it’s no wonder many of these institutions were not equipped to protect our loved ones when the once-in-a-generation pandemic hit. To make matters worse, a number of for-profit nursing home providers accused of fraud, labor violations and patient neglect just received hundreds of millions of dollars in loans under the Paycheck Protection Program. This money did not go to the families of the deceased or to the chronically underpaid workforce—but back into the pockets of executives. In light of the concerns present in nursing homes right now, home care offers a promising alternative: a supportive system to keep our aging, chronically ill and disabled neighbors safe, at home and living within their own communities—pandemic or otherwise. Home care is a safe and affordable option for families that costs less than assisted living. Many seniors and people with disabilities prefer home care, which allows them to live full and independent lives, with an aide to help

with tasks such as getting out of bed and buying groceries. But like our state’s decades-long divestment from public hospitals, New York has grossly underfunded the home care industry for years. Workers, the majority of whom are women and people of color, are consistently paid minimum wage salaries at the whim of private companies, resulting in a 24% poverty rate and 29% Medicaid rate. These are the people tasked with caring for our elders—doing the intimate, around-the-clock work needed to keep them safe—and we’re not paying them a living wage. It can’t be a shock to anyone that, given these conditions, thousands and thousands leave the force yearly. Ironically, the demand for home care could not be higher. As we find ourselves in the eye of the Covid-19 storm—still recovering from the first wave and unsure what devastating effects a second wave may bring—we must do all that we can to protect our most vulnerable. One of the finest examples of what good government can achieve is empowering the life and dignity of aging New Yorkers. The Legislature has the power to invest in the home care industry right now. We can start by creating a Home Care

BLOOMBERG

NY must protect elders by investing in home care

Jobs Innovation Fund, which will allow the state to pilot new models of elder care. We must also raise state revenue and prevent any cuts to Medicaid—a major source of funding for home care companies. To prepare for a second wave of Covid-19, we must provide hazard pay, sufficient personal protective equipment and adequate paid time off for essential home care workers on the front lines. As lawmakers, our job is to protect all New Yorkers—especially those at high-risk in a time of crisis. The Legislature’s public hearings on residential health care facilities

have demonstrated that the state failed to provide all necessary options and resources to do so. We cannot let this happen again. We call on our colleagues in the state Senate and Assembly to join us in the fight to invest in home care and protect elders and people with disabilities. ■ Alessandra Biaggi represents the 34th Senate District, which includes parts of the Bronx and Westchester. Ron Kim represents the 40th Assembly District in Queens, covering Flushing, Whitestone, Murray Hill and College Point.

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ASKED & ANSWERED volunteers all over the country helping people in need. Today we’re sending a daily update about Covid. You’d be amazed by how many people have difficulty accessing an update not in English.

DOSSIER WHO HE IS Co-founder and CEO, Homeis

INTERVIEW BY GERALD SCHIFMAN

GREW UP Suburbs of Tel Aviv, Israel

hen Ran Harnevo emigrated from Israel to New York in 2008, he was struck by the lack of opportunities to connect online with other immigrants. Though his move was prompted by a new round of funding for his video startup, 5min Media, Harnevo had a percolating interest in tackling this social problem, which he thought other immigrants were having as well. In 2017, years after selling the video company, Harnevo co-founded Homeis, a Flatiron District–based mobile app facilitating community building among immigrants, allowing them to meet with those who share their culture after settling in a new country. Homeis has served a heightened role in recent months, as the app has become a support and knowledge center for immigrants in their native languages during the pandemic.

How has usage of the app grown?

Our user base has grown more than 150%. We have half a million American immigrants using us on a monthly basis. More than 100,000 are in New York, which is our best market. And the coronavirus crisis has caused a few changes for us, as immigrants have been much more affected because of their legal status and access to health services.

RESIDES Williamsburg FLYING HIGH Harnevo served in the Israeli Air Force for seven years. INTERNET PIONEER He was the co-founder and CEO of 5min Media, a video syndication platform acquired by AOL for $65 million in 2010. Following the sale, Harnevo became AOL’s global president of video. SOMETHING TO TALK ABOUT While at AOL, Harnevo won a Primetime Emmy Award for overseeing production of Park Bench With Steve Buscemi, a talk show featuring the eponymous actor. The city-set web series spanned 25 episodes and featured guests including Dick Cavett, Chris Rock and Letitia James.

How did Homeis pivot to address the pandemic?

At the peak of the crisis in New York, we were literally a Covid product, helping people to navigate. We had hundreds of people getting information about their symptoms in their own languages. We integrated features where everybody can ask questions about Covid. We started to recruit community leaders in specific areas: doctors, nurses, lawyers. We have

Do you think the Trump administration’s executive orders against immigration could have long-term effects on New York?

We’re seeing less appetite and more fear from people applying for visas. We had a huge group in our Indian community exploring a move to Canada. And there was a Canadian immigration lawyer that downloaded the app and started to hold Zoom sessions, all organically. I’m not saying that everybody is leaving, but I think the notion that America loves immigrants is in danger—and rightly so.

How else can immigrants be helped?

We opened our first community in Canada this month, and we want to grow to Europe as a next step. On top of it, the second goal we’re going after is to integrate with financial services. A lot of times, immigrants are not aware of the scope of services available to them. We’re seeing companies that allow them to create a credit score and help them take out loans without Social Security, which is not easy.

Do you think increased popularity will make Homeis profitable?

I don’t think that there’s a question mark around whether there’s a monetization path because we have a substantial amount of immigrant users with a unique set of needs. There are so many ways for us to monetize the platform that we don’t think it’s something we need to do so early in the game. ■

BUCK ENNIS

RAN HARNEVO Homeis

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10 | CRAIN’S NEW YORK BUSINESS | AUGUST 24, 2020

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THE LIST TOP PROPERTY SALES

Largest commercial transactions in New York City through the first half of 2020, ranked by price

Larg

ADDRESS/ PROPERTY TYPE/ NEIGHBORHOOD

TRANSACTION PRICE (IN MILLIONS)

SQ. FT. OR NO. OF UNITS/ PRICE PER SQ. FT. OR UNIT

INTEREST CONVEYED

100% VALUE (IN MILLIONS)

CLOSE DATE

BUYER(S)

SELLER(S)

THE TOP FOUR

424–434 Fifth Ave. (Lord & Taylor)

$978

667,350 $1,466

100%

$978

3/12

Amazon

Rhone Group/ The We Co.

330 Madison Ave.

$900

849,372 $1,060

100%

$900

2/28

Meag1

Abu Dhabi Investment Authority

1 Madison Ave.

$492

1,200,000 $829

50%

$994

5/4

Hines/National Pension Service of Korea

SL Green Realty Corp.

3 4 5

SL Green Realty Corp.

Office Midtown East

Office Flatiron District

305 W. 33rd St. (The Olivia)

$447

333 $1,340,841

100%

$447

3/31

Brookfield Asset Management

530–536 Broadway

$382

196,000 $1,949

100%

$382

3/3

Deutsche Finance Group/ Thor Equities/ SHVO Wharton Properties

10 E. 29th St. (Instrata Nomad)

$381

392 $970,918

100%

$381

2/19

Global Holdings

390 Park Ave. (Lever House) Office Midtown East

$240

234,240 $1,025

100%

$240

5/20

Waterman Interests/ Brookfield Asset Management

RFR Realty/Harry Lis

44 Wall St.

$200

336,000 $595

100%

$200

3/3

George Comfort & Sons/ Gaedeke Group

Blackstone/ Swig Equities

417 Park Ave.

$194

8,725 $22,258

100%

$194

2/18

Klovern AB/ GDS Development

417 Park Ave. cooperative3

150 E. 42nd St.

$176

1,150,000 $957

16%

$1,100

1/1

Undisclosed private investor

David Werner/ 601W Cos.

111 Wall St.

$170

1,100,000 $155

100%

$170

1/15

Nightingale Properties/ Wafra

Zurich Financial

609 Fifth Ave.

$168

46,601 $3,605

100%

$168

5/22

Reuben Brothers

SL Green Realty Corp.

250 N. 10th St.

$138

234 $588,675

100%

$138

1/15

Trinity Place Holdings/ TF Cornerstone

TIAA

410 Madison Ave.

$117

58,395 $2,000

100%

$117

6/17

JPMorgan Chase

Bank of China

66-35 Otto Road

$112

235,500 $476

100%

$112

6/11

GLP Capital Partners

Sitex Group

88 Madison Ave. (James Hotel)

$110

337 $535,098

61%

$180

6/16

GFI Capital Resources

88 Madison Hotel joint venture

13–15 E. 11th St. (The Alabama)

$104

98 $1,058,673

100%

$104

1/31

Simons Foundation

Pebb Capital/ Rockwood Capital

434 Broadway

$104

66,000 $1,568

100%

$104

1/15

Tokyo Trust Capital/ MC Real Estate Partners

Savanna

462–490 Kent Ave.

$102

88,370 $1,159

100%

$102

5/22

Naftali Group

Isack Rosenberg

1 Flatbush Ave.

$101

183 $554,235

100%

$101

6/10

Goldman Sachs

Slate Property Group/ Meadow Partners

65 W. 96th St. (Tower West) Apartment Manhattan Valley

$99

217 $455,467

100%

$99

3/17

Jonathan Rose Cos.

Starrett Corp.

603 W. 50th St.

$90

122,205 $736

100%

$90

1/10

SL Green Realty Corp.

Kenneth Cole Productions Inc.

320 W. 31st St.

$88

116,086 $758

100%

$88

2/1

Columbia Property Trust

Onyx Equities/ GMF Capital

123 Hope St.

$84

136 $615,912

100%

$84

3/26

HUBB NYC

Slate Property Group/ Adam America Real Estate

110 Leroy St.

$75

67,500 $1,111

100%

$75

1/14

Atlas Capital Group

Leeds Associates

Apartment Chelsea Office SoHo

Apartment NoMad

Office Financial District Development site Midtown East Office Murray Hill

Office Financial District Retail Midtown East Apartment Williamsburg Office Midtown East Industrial Glendale Hotel NoMad

Apartment Greenwich Village

Office SoHo

Development site Williamsburg Apartment Fort Greene

Office Midtown West Office Chelsea

Apartment Williamsburg Office West Village

Invesco Real Estate2

7 8 9

10 424–434 Fifth Ave.

TRANSACTION PRICE $978 million

12 13 14 15 16

17 18 19 20 21 22 23 24 25

330 Madison Ave. TRANSACTION PRICE $900 million

SOURCE: Real Capital Analytics with additional research by Gerald Schifman. List is based on independent reports of properties and portfolios $2.5 million and greater. The list does not include sales for which no price was made public. Partial-interest transactions are included at the prorated share of the 100% property value. Real Capital Analytics Inc., headquartered in New York City, is an independent data and analytics firm focused on the investment market for commercial real estate. RCA offers data on commercial property transactions around the world. 1-On behalf of Munich Re. 2-On behalf of Los Angeles County Employees Retirement Association. 3-Cooperative is composed of Aida Lopez, David Mellgard, Vincent Saladini, Georgiana Slade and Joseph Zappala.

26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41

1 Madison Ave. TRANSACTION PRICE $492 million

43 44

PHOTOS: BUCK ENNIS

Retail Garment District

305 W. 33rd St. TRANSACTION PRICE $447 million

August 24, 2020 | CRAIN’S NEW YORK BUSINESS | 11

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45 46 47 48 48

SOUR a dat

12 |

TOP OFFICE LEASES Largest transactions in Manhattan in the first half of 2020, ranked by square feet

PHOTOS: BUCK ENNIS

TENANT REPRESENTATIVE

LANDLORD(S)

LANDLORD/SUBLANDLORD REPRESENTATIVE(S)

DEAL TYPE

NEIGHBORHOOD

New York State Office of General Services

CBRE

Piedmont Office Realty Trust

JLL

Renewal

Financial District

241,339

U.S. Securities and Exchange Commission

JLL

GFP Real Estate/Northwind Group/ TPG Real Estate

Newmark Knight Frank

New lease

Financial District

151 W. 42nd St.

232,138

TikTok

CBRE

Durst Organization

New lease

Times Square

11 Penn Plaza

220,229

Apple

JLL

Vornado Realty Trust

CBRE/Vornado Realty Trust

New lease

Penn Plaza

1 World Trade Center

199,277

MDC Partners

JLL

Port Authority of New York and New Jersey/ Durst Organization

Durst Organization/ Newmark Knight Frank

New lease

Financial District

159 E. 53rd St.

195,326

NYU Langone

Cushman & Wakefield

Norges Bank Investment Management/ Boston Properties

JLL

New lease

Midtown East

7 8 9

260 11th Ave.

174,186

City of New York

Direct deal

Vornado Realty Trust

Renewal

Chelsea

111 Eighth Ave.

165,976

Digital Realty Trust

JLL

Google

CBRE

Renewal

Chelsea

51 Madison Ave.

159,562

Quinn Emmanuel Urquhart & Sullivan

CBRE

New York Life Real Estate Investors

Cushman & Wakefield

Renewal

NoMad

1221 Sixth Ave.

143,331

Allen & Overy

JLL

Rockefeller Group/Invesco Real Estate

Rockefeller Group/ Cushman & Wakefield

Renewal

Midtown West

1345 Sixth Ave.

129,989

Fortress Investment Group

Colliers International

Fisher Brothers Management/ JPMorgan Chase

Fisher Brothers Management

Renewal

Midtown West

12 13 14 15 16

200 Park Ave.

129,920

Bank of New York Mellon

CBRE

Tishman Speyer

Renewal and expansion

Midtown East

655 Third Ave.

120,075

Mitsubishi Corp.

Newmark Knight Frank

Durst Organization

Renewal

Murray Hill

350 Park Ave.

119,421

ADDRESS

SQUARE FEET

60 Broad St.

451,568

100 Pearl St.

3 4 5

TENANT

Citadel

Newmark Knight Frank

Vornado Realty Trust

Renewal and expansion

Midtown East

3 World Trade Center

85,984

Hana

CBRE

Silverstein Properties

Silverstein Properties/CBRE

New lease

Financial District

32 Old Slip

85,526

PolicyGenius

Savills

Healthcare of Ontario Pension Plan/ RXR Realty

RXR Realty/CBRE

New lease

Financial District

17 18 19 20 21 22 23 24 25

399 Park Ave.

81,325

Savills

Boston Properties

Renewal and expansion

Midtown East

120 W. 45th St.

77,574

D. E. Shaw & Co.

CBRE

Kamber Management Co.

Avison Young

Renewal

Times Square

410 Tenth Ave.

75,704

Hudson Yards Construction

Direct deal

SL Green Realty Corp./Kaufman Organization SL Green Realty Corp.

Renewal and expansion

Far West Side

685 Third Ave.

74,349

Remedy Partners

CBRE

BentallGreenOak

CBRE

New lease

Midtown East

230 Park Ave.

72,838

INTL FCStone

JLL

RXR Realty/Blackstone Group

RXR Realty/Newmark Knight Frank

New lease

Midtown East

1251 Sixth Ave.

71,207

Sentinel Real Estate

JLL

Mitsui Fudosan America

Newmark Knight Frank

Renewal

Midtown West

601 W. 26th St.

70,292

Convene

CBRE

RXR Realty/Blackstone Group

RXR Realty

New lease

Chelsea

122 E. 42nd St.

66,551

Virgo Business Centers

Cushman & Wakefield

Stahl Real Estate

Cushman & Wakefield

Renewal and expansion

Murray Hill

32 Old Slip

65,796

U.S. Department of Education

Direct deal

Healthcare of Ontario Pension Plan/ RXR Realty

CBRE

Renewal

Financial District

26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41

401 Park Ave. South

63,300

Vitech Systems Group

Lee & Associates

Himmel & Meringoff Properties

Renewal

NoMad

135 W. 50th St.

61,623

Industrious

Direct deal

UBS

George Comfort & Sons

New lease

Theater District

902 Broadway

60,696

Fenwick & West

CBRE

Rosen Group

Koeppel Rosen

Renewal and expansion

Flatiron District

2 Penn Plaza

60,475

MSG Sports & Entertainment

Newmark Knight Frank

Vornado Realty Trust

Renewal

Penn Plaza

11 Penn Plaza

59,516

Information Builders

SL Green Realty Corp.

Vornado Realty Trust

New lease

Penn Plaza

1114 Sixth Ave.

59,052

Colliers International

Brookfield Asset Management/Swig Co.

CBRE/Brookfield Office Properties

New lease

Midtown West

1540 Broadway

55,877

Bank of America

CBRE

Edge Funds Advisors

CBRE

Renewal

Times Square

485 Lexington Ave.

54,199

Memorial Sloan Kettering

Direct deal

SL Green Realty Corp.

SL Green Realty Corp./JLL

Renewal

Midtown East

140 Broadway

50,442

Labaton Sucharow

Newmark Knight Frank

Union Investment Real Estate

Cushman & Wakefield

Renewal

Financial District

399 Park Ave.

50,178

Owl Rock Capital Partners

Cushman & Wakefield

Boston Properties

CBRE

Renewal and expansion

Midtown East

100 Pearl St.

50,040

Alger

Handler Real Estate Services GFP Real Estate

Newmark Knight Frank

New lease

Financial District

250 Park Ave.

48,722

Pernod Ricard USA

Newmark Knight Frank

AEW Capital Management

Cushman & Wakefield

Renewal

Midtown East

5 Penn Plaza

48,327

Visiting Nurse Service of New York Cushman & Wakefield

Haymes Investment Co.

CBRE

Renewal

Penn Plaza

601 W. 26th St.

46,764

Skip of New York

Kaufman Organization

RXR Realty/Blackstone Group

Cushman & Wakefield

New lease

Chelsea

156 W. 56th St.

46,523

Caleres

Newmark Knight Frank

Tishman Speyer

Renewal

Midtown West

250 W. 57th St.

46,329

Concord

CBRE

Empire State Realty Trust/ Qatar Investment Authority

Empire State Realty Trust/ Cushman & Wakefield

New lease

Columbus Circle

300 Vesey St.

45,923

Cumulus Media

Transwestern Real Estate Services

Brookfield Asset Management

JLL/Sage Realty Corp.

New lease

Battery Park City

43 44

200 Park Ave.

44,612

CBRE

Tishman Speyer

New lease

Midtown East

1 Liberty Plaza

44,042

HealthFirst

JLL

Brookfield Asset Management/ Blackstone Group

JLL/Sage Realty Corp.

New lease

Financial District

45 46 47 48 48

1251 Sixth Ave.

42,800

Piper Sandler Cos.

JLL

Mitsui Fudosan America

Newmark Knight Frank

New lease

Midtown West

115 Broadway

42,409

Johannes Leonardo

CBRE

Capital Properties

CBRE

New lease

Financial District

1114 Sixth Ave.

42,091

iStar

Cushman & Wakefield

Brookfield Asset Management/Swig Co.

Brookfield Office Properties

Renewal

Midtown West

55 Broad St.

41,000

Uncommon Schools

LSL Advisors

Rudin Management

New lease

Financial District

767 Fifth Ave.

41,000

Public Investment Fund of Saudi Arabia

JLL

Boston Properties/Sungate Trust

CBRE

New lease

Midtown East

225 Liberty St.

40,868

TheStreet

Cushman & Wakefield

Brookfield Office Properties

CBRE

New lease

Battery Park City

SOURCE: CoStar Group with additional research by Gerald Schifman. This list includes leases with terms of more than two years. In the case of a tie, deals are listed in alphanumeric order of address. CoStar Group conducts research to produce and maintain a database of commercial real estate information.

| 11

12 | CRAINâ&#x20AC;&#x2122;S NEW YORK BUSINESS | August 24, 2020

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AT THE CENTER OF

WHAT’S NEXT With 4.1 billion square feet under management, 400 offices in 60 countries and 53,000 hardworking innovators, this is where the power of real estate is unleashed on behalf of the world’s top owners and occupiers. Explore what’s next at cushmanwakefield.com

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CORONAVIRUS ALERT SMALL BUSINESS

9 things restaurant owners wish diners would do when eating out BY NATALIE SACHMECHI

sensitive about how long they take to dine. “We don't like to be in a position of asking people to vacate their table, but it’s safer and fairer,” Barak said. “Once their bill is paid, guests should start getting ready to leave the table, not spend another hour or two seated.”

ith the summer in full swing, New Yorkers are getting their fix of the city’s outdoor dining scene, but safety is still a top priority for restaurant owners. The restaurants aren’t the only ones that should be taking safety precautions, owners say, adding that diners should take care to make the experience safer for themselves, other diners and restaurant workers. Here are some do’s and don’ts for patrons to make their outdoor dining experience as safe as possible.

BLOOMBERG

Don’t ask your friends to join you for drinks after you’ve already eaten.

Wear a mask when entering the restaurant. Whether it’s asking the hostess for a table or going to the restroom, diners should always wear a mask, restaurant owners who spoke with Crain’s agreed. At Gazala’s on the Upper West Side, most customers are following this rule, owner Gazala Halabi said,

Dine in small groups. Having too many people seated at a table can be risky for the diners, the waitstaff and even passersby, restaurant owners said. Gazala’s will seat groups no larger than six to eight people these days. “If it’s a family, it’s OK,” Halabi said. “When friends come, it’s a problem. I know people need to see each other, but it’s dangerous.”

RESTAURANTS AREN’T THE ONLY ONES THAT SHOULD BE TAKING SAFETY PRECAUTIONS adding that she hasn’t seen any customers enter the restroom without a mask. But for Italian mainstay Tarallucci e Vino, which has locations across the city and where the staff is always masked, customers often need gentle reminders to cover their face, founder Luca di Pietro said.

Don’t crowd around the restaurant when you’re waiting to be seated. “People congregating around restaurants has been an issue,” said Andrew Rigie, executive director of the New York City Hospitality Alliance. An executive order signed by Gov. Andrew Cuomo mandated that

restaurants maintain order and control crowding within 100 feet around their establishments. This means that if people aren’t being safe while waiting to be seated, the restaurant can face a penalty, Rigie said. A respectful thing to do when waiting for a table, he said, is to go for a walk until it’s time to be seated.

Keep your mask on until your food comes. Most diners take their masks off as soon as they’re seated, and it’s really hard for them to interact with their party when they have them on, said Mark Barak, owner of La Pecora Bianca. Although state rules say customers should wear a face covering whenever they may be within 6 feet of another person unless seated, Halabi and di Pietro say, for the sake of the waitstaff ’s safety, it’s important to stay masked when first seated and when order-

ing. Guests should remain masked when standing or moving around their table, Barak said.

Don’t move seats or ask for your table to be changed after you’ve sat down. Tables are fully sanitized after each use, Halabi said. Asking for your table to be changed can be risky and can make more work for waitstaff who have to disinfect and reset tables. At La Pecora Bianca, Barak recommends staying at your table and avoiding moving your chairs around. If chairs were added or moved, then tables wouldn’t be the state-mandated 6 feet apart from one another anymore, he explained.

Be sensitive to how much time you spend at the restaurant. Restaurants are at limited capacity, Barak said, and there are some guests who could be a little more

Per the governor’s rules, restaurants can’t serve patrons alcoholic beverages if they aren’t ordering food to go with it. It’s also a safety issue when too many people come to join a table, Barak said. “You can’t just add chairs and let your friends come,” he said. Doing that would make it difficult to be socially distanced from other diners, he added.

Don’t go out to eat if you’re feeling sick. Even if you’re outside, it’s not a good idea to be around others if you feel sick, Halabi said. It’s a risk for your waiter, she explained, and for those dining out around you. The CDC recommends staying at home for at least 14 days if you’re not feeling well or have come into contact with someone who had Covid-19.

Be nice and tip well. Restaurant workers are working under extraordinarily challenging circumstances, Rigie said. “Be a little more patient and gracious,” he said. “If it takes longer to get your food or to be seated, give people a break.” It’s also important to leave a nice tip, he said. “We’re all in this together.” ■

HEALTH CARE

Supportive-housing nonprofit opens sprawling $87M Bronx residence

ommunity Access—a nonprofit focused on supportive housing and social services for New Yorkers—has opened a 215-unit residential building on Bruckner Boulevard in the Bronx. The $87 million project will

for Community Access to date, said CEO Cal Hedigan. The development also marks the nonprofit’s first project with the Empire State Supportive Housing Initiative. Support services will help residents—many of whom have never had their own apartment or have transitioned from shelters and psychiatric facilities—acclimate to their new neighborhood, Hedigan said. They’ll also assist people in understanding what they’d like to do next in their lives. “Once you have achieved [a safe home], people can start to think about other goals they might have,” she said. Due to the Covid-19 crisis, many of the support services are being

MANY OF THE SUPPORT SERVICES ARE BEING PROVIDED TELEPHONICALLY house low-income families and those experiencing chronic homelessness as well as individuals living with mental health concerns. Dozens of people have already moved into the building, the largest

provided telephonically. And, although social distancing is being promoted for the time being, the building has been designed with multilevel lounge areas to encourage the development of microcommunities between floors, Hedigan said. She added that there is concern that the development of affordable-housing buildings in the future may be hindered by budget cuts precipitated by the pandemic. That’s especially troubling as more New Yorkers could face homelessness as a result of the crisis. “If there’s this pause now, we may not see the impact for three or four years,” Hedigan said. “But then, there will be a point in time when there’s no new housing.” ■

COMMUNITY ACCESS has opened a 215-unit residential building on Bruckner Boulevard in the Bronx.

SEAN SIME PHOTOGRAPHY

BY JENNIFER HENDERSON

14 | CRAIN’S NEW YORK BUSINESS | AUGUST 24, 2020

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RESIDENTIAL REAL ESTATE

Midtown mansion of former Iranian princess closes for $11.5M

he controversial mansion of the former princess of Iran has officially sold after years of lawsuits and failed attempts. A limited liability company linked to the Scarsdale-based Finkelstein Timberger East Real Estate firm officially closed on its $11.5 million purchase of the home at 29 Beekman Place on Aug. 5, according to property records. The LLC went into contract for the Manhattan luxury property in early June. Iranian Princess Ashraf Pahlavi used the townhouse near the United Nations as one of her homes after fleeing Iran in the wake of the country’s revolution. The 12,000-square-foot house initially hit the market in 2014 for $50 million and went through multiple rounds of price cuts before finally closing on a sale. Pahlavi, twin sister of the shah, died at 96 in 2016, and two of her

center of the two employees’ feud has been 29 Beekman Place. The mansion was sold out of bankruptcy, which was itself a controversial move. It was initially supposed to sell in an Oct. 9 sheriff’s sale meant to get Azari her $2.7 million judgment. Wansdown Properties Corp., however, which manages the princess’s assets and is run by Golsorkhi, filed for bankruptcy the day before. The firm said this would allow it to more effectively sell the mansion, but Azari’s attorney, Nader Mobargha, said it was just another way for Wansdown to avoid paying his client.

Third deal “The sale has had no impact on the litigation between Ms. Azari and Wansdown and Golsorkhi,” Mobargha said, “and she is still litigating the rights to her pension.” Paul Rubin, an attorney for Wansdown, said he was pleased that the company “successfully closed on the sale of the townhouse.” Representatives for Finkelstein Timberger did not respond to a request for comment. This marks at least the third time the mansion has gone into contract, but the two prior deals fell through. Wansdown came close to selling the house to Secured Capital Partners for $17 million in 2017 but canceled the deal when the LLC did not make its required down payments, court papers say. Wansdown attempted to sell the home last year to an anonymous buyer for $10.3 million, but that

PHOTOS COURTESY OF COMPASS

BY EDDIE SMALL

THE HOUSE INITIALLY HIT THE MARKET IN 2014 FOR $50 MILLION former employees have been engaged in a vicious legal battle ever since. A court awarded her longtime employee Azadeh Nasser Azari a $2.7 million judgment soon after the princess’s death, but her other longtime employee, Gholam Reza Golsorkhi, has been fighting Azari over this for years. At the

MORE PHOTOS ONLINE: CrainsNewYork.com/residential-real-estate deal fell through as well. Charlie Attias, a broker at Compass, and a team at Rosewood Realty led by Greg Corbin and Aaron Jungreis put together the deal. “We knew people that would take this as a longer-term investment and

potentially put the work in and turn it around,” Corbin said, “as opposed to a residential end user, which the other firms were looking for.” Attias acknowledged that the property had multiple failed sales attempts behind it but maintained

that the team did not do anything drastically different when putting together the Finkelstein Timberger deal. “Sometimes you just need the right buyer at the right time,” Attias said, “and this was the right buyer.” ■

REAL ESTATE

Catskills town leads U.S. in home prices due to exodus

Invitation to Prequalify and to Bid Rehabilitation and Flood Mitigation of the New York Aquarium, Brooklyn, NY Turner Construction Company, an EEO Employer, is currently soliciting bids for the Rehabilitation and Flood Mitigation of the New York Aquarium from subcontractors and vendors for the following bid packages:

picturesque Hudson Valley town north of New York City has the fastest-rising home prices in the U.S. The typical home in Kingston, N.Y., now on the receiving end of the exodus from the densely packed city, sold for $276,000 in the second quarter, an 18% jump from a year earlier. That was the biggest increase among 181 U.S. metropolitan areas measured by the National Association of Realtors, according to a report Aug. 12. “Every single deal I have is someone from Brooklyn or Manhattan,” said Amy Crossfield, a Kingston agent and former Brooklynite. “You have bidding wars, cash offers and people rushing to put in an offer the day something comes on the market.” Kingston is nestled between the

KINGSTON, N.Y. Catskill Mountains to the west and the Hudson River to the east, about 90 miles from New York. It has long drawn urbanites looking for a weekend getaway, with its bookstores, coffee shops and boutiques. But the arrivals from New York, who are fueling booms in suburbs across the tri-state area, shifted the market into overdrive, Crossfield said. Crossfield’s clients include two New York professors who are teaching remotely and the owners of a design firm who don’t need to be in the office. One couple, looking for a weekend place with a backyard, lost in

WWW.KINGSTON-NY.GOV

ASSOCIATED PRESS

two bidding wars. After one of the offers, $11,000 above asking, they were fourth in line. They finally got a home that others missed because it was badly photographed in the listing, Crossifield said. “I don’t ever think it has been this crazy,” she said. Overall, U.S. home prices rose 4.2% in the second quarter, down from the 7.7% pace in the first quarter, according to the report. The coronavirus lockdowns that started in March caused buyers to pause for a couple months. By May, with borrowing costs near record lows, they came flooding back. ■

BP #35 Sea Cliff’s Electric (Bid, Payment & Performance Bond Required) Only bids responsive to the entire scope of work will be considered and, to be successful, bidders must be prequalified by Turner. Certified M/WBE and Small Business (13 CFR part 121) companies are encouraged to submit. In order to receive the bid packages, potential bidders must submit a complete Subcontractor/Vendor Prequalification Statement. Prior prequalification submissions that remain current will be considered as previously submitted or may be updated at this time. All bidders must prequalify by the bid deadline August 26th, 2020 and submission of a prequalification statement not later than August 20th , 2020 is strongly encouraged. All bidders must have an acceptable EMR, and will be subject to government regulations such as 44 CFR and Federal Executive Order 11246. Successful bidders will be required to use LCP Tracker compliance verification software. Note that while this is a New York City prevailing wage project, union affiliation is not required for BP#35. To obtain further information about contracting opportunities and/or the prequalification package and bid solicitation package/s, please contact Macarena Bermudez (mbermudez@tcco.com or 212-229-6000.) The date for the virtual public opening by Turner Construction Company office located at 375 Hudson Street, New York, New York, is August 27th, 2019 at 11 am. Link for virtual opening: Please join my meeting from your computer, tablet or smartphone" https://global.gotomeeting.com/join/285359709

August 24, 2020 | CRAIN’S NEW YORK BUSINESS | 15

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POLITICS

De Blasio puts October deadline on massive job cuts for city workers

ayor Bill de Blasio has finally set a deadline on municipal job cuts to reduce the city budget, saying Aug. 12 that he’ll have to lay off 22,000 city workers on Oct. 1 if he doesn’t get federal funds or borrowing power from the governor. “That 22,000 number is painfully real,” he said during a news conference. “It resembles the type of things we did decades ago. We’re going to try and avert it if we can.” The mayor appeared resigned to the imminent job cuts, but he emphasized that without federal or state help, he is left with no choice but to find a way to come up with billions in savings for the city. “The overwhelming cost to government is personnel,” he said. “That’s where the greatest impact comes in serving people, but that’s where the costs are.” Every agency in the city would be affected by the job cuts, and each agency would be required to come up with a plan on how to acquire

JOB CUTS MAINLY WILL AFFECT YOUNG CITY EMPLOYEES the cost savings, de Blasio said. The mayor’s administration is working with labor unions to find alternative measures that would lessen the need for such drastic layoffs. “We all hoped and prayed there would be a stimulus,” he said, adding that it appears unlikely that Washington will come to an agreement. For several weeks, the mayor has

asked Albany for borrowing authority, a plan Gov. Andrew Cuomo and other state leaders have rejected and called fiscally irresponsible. “The best solution is to get the appropriate kind of borrowing authority from Albany just like this city got after 9/11 so we can avert cutting city services,” de Blasio said. “We don’t want New Yorkers to suffer loss of services.”

Other options Budget watchdogs have criticized de Blasio for his workforce expansion. Despite a partial hiring freeze enacted by the city in fiscal 2017, the Citizens Budget Commission found city employee headcounts had grown every year since. During the mayor’s tenure, the city’s workforce has expanded 12%. Some city budget experts say de Blasio has not used up all possible options to save the city money. Maria Doulis, vice president of the Citizens Budget Commission, said de Blasio has abdicated his previously stated budget promise to find $1 billion in negotiated savings with municipal unions. “It seems that has gone out the window in this calculus,” she said. “Labor has come to the table and been part of the solution in every fiscal crisis in the past.” Her organization doesn’t think the 22,000 layoffs are necessary, Doulis said, adding there are other avenues to find savings within the city’s operations. One area is health insurance costs and premium sharing arrangements, which municipal unions negotiate collectively with the city. While health insurance is a huge cost for most employees, New York City pays the entire premium for employees, retirees and their families.

DE BLASIO

“It’s one area where there could be a lot of fruit in the negotiations because of the high cost and the relative generosity of the arrangement,” Doulis said. Nicole Gelinas, a senior fellow at the Manhattan Institute, agreed with that sentiment. She said the city needs to reevaluate the viability of its pension structure. “Are these pension and benefit structures at all sustainable?” she asked. Gelinas noted that firefighter and police pensions are not entirely funded and that the city faces a $100 billion deficit in long-term funding for its Retiree Benefits Health Fund. “It’s time to start thinking about the benefit structures rather than throwing more people out on un-

employment rolls,” Gelinas said. “That shouldn’t be the first resort.” To make matters worse, the layoffs would be organized around a “last in, first out” type of employment policy. Job cuts mainly will affect young city employees who have been hired in the past few years; more senior staff have layoff provisions baked into their contracts to protect them. “It’s really junior employees that bear the brunt of this,” Doulis said. “The mayor will be laying off 22,000 people he hired during his tenure.” Both Gelinas and Doulis said the mayor would be better served by using attrition and a hiring freeze to lower the financial commitment to city employees. Other roads he can

BLOOMBERG

BY BRIAN PASCUS

take include targeting administrative jobs, which have ballooned in his tenure, and putting a salary cap on non-unionized workers, which Gelinas said would save the city $200 million per year. “There’s a lot he can do to be constructive rather than just throw out essential workers,” she said. As for the $10 billion in borrowing authority de Blasio has requested, Gelinas said this is an irresponsible position for the mayor to take. “He needs to put together a more realistic budget before we start talking about borrowing authority,” she said. “They should be looking at that $1.5 billion payment for the retroactive raises he awarded to the teachers in 2014. They waited 10 years to get paid, so they can wait a few more.” ■

HEALTH CARE

Nurse-staffing rules would cost billions, report finds BY JENNIFER HENDERSON

he state Department of Health on Friday released a highly anticipated report that considers the logistics of implementing mandated nurse-staffing ratios in New York. Researchers found that if the proposed legislation were passed, hospitals would need to hire

79% and 96% for nursing homes. The department was directed under last year’s state budget to conduct a study on how staffing enhancements could improve patient safety and quality of care in hospitals and nursing homes. In addition to engaging researchers from Cornell to conduct the logistical study, it turned to public reports, academic literature, news publications, data from other states and stakeholder input to compile the report. “Some stakeholders voiced concern that a one-size-fits-all approach of mandating statewide, nurse-topatient ratios does not take into consideration the differences in types of hospitals, patient populations and care practices,” the department wrote in the report. “These stakeholders advocate that staffing decisions be made at the facility level.” The department added that the

“EVERY HOSPITAL IN NEW YORK STATE WILL LOSE MONEY THIS YEAR” nearly 25,000 additional nurses—at an annual cost of between $1.8 billion and $2.4 billion. Nursing homes would be hit with $1.9 billion to $2.3 billion in annual costs, according to the report. The estimates reflect an increase in nurse wage costs of between 40% and 53% for hospitals and between

evolution of clinical care and sicker patients suggest that providers need flexibility to identify and implement staffing plans that best meet the needs of patients and residents. And research suggests that the state will continue to experience a nursing shortage during the next decade.

Strategies needed “All of these factors suggest the need for a comprehensive approach to ensure that New York state has a highly trained, skilled nursing workforce that will continue to meet the needs of patients and residents in a safe work environment,” the department wrote. That should include strategies to ensure that nursing continues to be an attractive career and the capacity exists to educate and train the future workforce, the department said. Other efforts should include a focus on providing a safe work environment

that minimizes stress on nurses, data to conduct workforce research for future planning and a state policy that provides flexibility for providers to align their workforce capacity with patient and resident needs. “Nurses are indispensable professionals without whom there would be no patient care,” the Greater New York Hospital Association noted in a statement in response to the report. “Our hospitals are always looking for ways to better support them and the critical work they do.” At the same time, it said, mandated staffing ratios would have been “unworkable and unaffordable” even before the pandemic. And now such a requirement is unthinkable for hospitals. “Every hospital in New York state will lose money this year,” the association said. “Some of our hospitals are contemplating layoffs—a terrible conundrum at a time when we are continuing to ask for heroism

during the ongoing pandemic. And, we fear, in a post-Covid era—if it ever comes—hospital revenues will not return to their pre-Covid levels due to consumer concerns about hospital care and outmigration of patients from New York City.” On the other side of the debate, the New York State Nurses Association reiterated its long-held stance that staffing ratios save lives. The pandemic “highlighted the deadly consequences of nurse understaffing in our state’s hospitals,” the association said in a statement about the report. “Safe staffing could have saved lives during the Covid pandemic and, if implemented uniformly through New York, will improve patient outcomes, save lives and increase New York’s capacity to respond to future public health emergencies.” The association added that it would conduct a full analysis of the report. ■

16 | CRAIN’S NEW YORK BUSINESS | August 24, 2020

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FROM PAGE 1

books for many years, which would’ve prevented many of the excessive for-hire vehicles from ever being on the road,” said Carolyn Protz, a taxi medallion owner. “The TLC hasn’t done anything. They haven’t held the app companies to the rules they were supposed to create.” More than that, industry insiders say, the city left money uncollected during an extreme budget crisis. The penalty for companies operating without the High Volume For Hire Service license is a $10,000 fine each day the violation is in place. The law explicitly states it is unlawful for these types of companies to operate unless licensed by the TLC. The agency maintains that no penalties applied because the applications had been submitted, but not approved. Emails and legal documents obtained by Crain’s show that Uber and Lyft have been operating in New York without an approved high-volume license for two years. Last September the TLC testified that it was in the process of implementing the law. Not much changed nearly a year later. An email exchange from June 18 of this year between Kala Wright, the TLC's deputy commissioner for policy, and Protz confirmed that Uber, Lyft and Via were still operating without an approved license as late as 20 months after the City Council passed the bill. “Hi Carolyn, thanks for following up, the [high-volume] licenses are

Under the regulation the companies, Uber, Lyft and Via, must turn over records on driver compensation, environmental and financial impact and other information, that could result in further restrictions on them. Both Uber and Lyft applied for the permits in mid-2019, but the TLC only recently approved their applications after Crain’s made inquiries. “The TLC failed to timely enact regulations and enact the legislation which their chair asked for,” said Christopher Lynn, a TLC commissioner from 1996 to 1998. “In other words, the TLC did everything else except level the playing field and hold Uber accountable.” The law sought to provide greater transparency of companies, such as Uber and Lyft, whose fleet of cars had risen exponentially in the city beginning in 2011 at the expense of traditional yellow taxi drivers and livery black car taxis, leading many of these drivers to fall into bankruptcy and despair. There were several taxi-industry suicides before the law’s passage. For taxi medallion owners, the TLC’s lack of enforcement is nothing short of a betrayal of its mission to regulate and protect the yellow cab medallion industry. “I expected the TLC to enforce the rules that they’ve had on the

still under review, all of the company's (sic) have submitted their application materials,” Wright wrote at the time. Lyft said its license was approved Aug. 11, two days prior to the publication of the Crain’s investigation, spokeswoman Campbell Matthews said. Uber and Via have yet to respond to requests for comment on the status of their licenses. For its part, the TLC has said that it’s done nothing wrong, but the agency failed to make clear what caused the delay. A spokesman said the agency considered them “fully licensed” while their applications were pending.

Checkered past “Uber and Lyft are indeed fully licensed and will remain so while their [High-volume For Hire Service] applications are being processed,” TLC spokesman Allan Fromberg said, prior to publication of Crain’s first story on the issue. The agency announced the approval of the licenses hours after the article appeared online. Fromberg declined to comment further. Medallion owners, such as Protz, said they were frustrated that the TLC turned a blind eye to the regulations established explicitly passed to level the playing field among all drivers and ride-share companies. “The TLC is really rogue. They just ignored what they were told to do by the City Council,” she said. Baked into Local Law 149 are a few different licensing require-

BUCK ENNIS

TAXI

ments that Uber and Lyft must comply with to be licensed under the law. These requirements include a list of bases through which the companies will dispatch trips, a business plan with trip volumes, a vehicle count, accessibility requirements and an impact analysis. These data points show the effect the ride-hail apps have on the environment and documents their impact on traffic congestion, public transportation, private motor vehicles and noise in the city area. It is thought that these regulations—notably a comprehensive account of the environmental impact tens of thousands of Uber and Lyft vehicles have on the city's environment—would complicate, if not prove detrimental, to the ride-share companies. Bronx Councilman Ruben Diaz Sr., who introduced the bill, has called on Attorney General Letitia James to investigate what he said is lack of oversight by the TLC. The AG’s office declined to comment.

Councilman Ritchie J. Torres, who chairs the Oversights and Investigations Committee, said he was “deeply disturbed” by the allegations that the TLC circumvented local law. “No agency gets to pick and choose the laws it wishes to follow,” Torres spokesman Raymond Rodriguez said. “The TLC has an obligation to faithfully follow all local laws, and Local Law 149 is by no means an exception.” For medallion owners, who have seen their livelihood altered in the face of the ride-share onslaught, the failure of the TLC and the de Blasio administration to implement Local Law 149 has dramatically altered the city’s transportation landscape. “They damaged public transportation, increased pollution, increased congestion, destroyed a $15 billion taxi medallion franchise and created poverty among all the drivers,” Protz said. “And they’ve done all that for nothing.” ■

E NC

C ST LA

E IST G RE

WEBCAST Hospitals and Health Care Providers Prep for a New Normal August 31, 2020 | 11 A.M. – Noon The Covid-19 outbreak has forced everyone to confront unprecedented challenges and disrupted our healthcare system – particularly in the area of drastically decreased facility-based patient volumes. In this webcast Crain’s will explore what changed for hospitals and health care providers during the pandemic and predict what health care leaders can expect in terms of recovery for the rest of 2020 and into 2021. PANELISTS

Michael Dowling CEO Northwell Health

Anthony Viceroy CEO Westmed

Produced by

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out how to do it whatever we’re doing,” said Marcus, who opened the café in January 2018. Just before the shutdown, it became New York’s first zero-waste restaurant, as certified by Green Business Certification, the organization that awards LEED green-building certifications. The process involved meticulously documenting that the restaurant diverts at least 90% of its waste from landfills. West~bourne is one of a number of New York City restaurants and bars that have, in the past few years, worked to radically reduce the amount of waste they send to landfills. Tactics include careful and creative menu planning to use up excess ingredients, composting, arranging to have deliveries from distributors made via cargo bike and opting not to offer takeout, which typically involves single-use containers that restaurants can only hope are being composted or recycled. Estimates vary, but according to the nonprofit ReFED, the U.S. restaurant industry generates 11.4

Maintaining principles Before the shutdown, Rhodora, a Fort Greene, Brooklyn, restaurant and natural wine bar, had been slowly adding to the pared-down menu of conservas and pickled vegetables it had opened with in September 2019 as it built a network of suppliers that met its strict, no-waste specifications. “We originally wanted to go with a cheese distributor, but we realized there was no way to do it without a lot of plastic packaging,” said co-founder Henry Rich. “We ended up going directly to a farm, but they only had cows. Then we met someone who had a goat farm.” When the pandemic hit, Rhodora closed its kitchen as it worked out how to reopen safely without cutting corners on its principles. Challenges included the temporary shutdown of Brooklyn Grange, the rooftop farm where the restaurant sent its compost. That situation was easily solved: Rhodora, which belongs to the Oberon Group, quickly determined its recycling hauler could take the compost to a farm upstate. The restaurant began to sell CSA boxes, meanwhile, to generate income, help suppliers and provide a community service, all with minimal packaging. Prepared food, however, created a dilemma. In light of the city’s decision to eliminate its composting program, Rhodora decided to go with reusable containers such as glass jars and recyclable packaging. The restaurant also started offering composting for the community— sending customers’ compost upstate with its own, at its parent company’s expense—a service that has received a plethora of requests since it launched in July. “Is it more expensive to be sustainable? Yes,” Rich said. “But the

“BUILDING A SUSTAINABLE FOOD SYSTEM IS MORE PRESSING THAN EVER” million tons of food waste annually. And then there’s all the other trash: plastic wrap, paper napkins, stained menus, disposable packaging, takeout containers and items that are recyclable in theory but not really in practice, like waxed cardboard and the containers that berries arrive in. Covid-19, which has dealt a blow to the city’s restaurants, made adhering to sustainable practices much more difficult in many respects. But restaurateurs say they’re finding ways to continue their environmental mission, even as they’ve been forced to adapt

DECLINES FROM PAGE 3

Senior Vice President Jim Costello. The 2019 rent law made multifamily properties less attractive to buyers, and the hotel market was dealing with an excess of supply and increased competition from Airbnb. “Even without the pandemic, we’d have lower activity,” Costello said, though acknowledging that the pandemic still “makes everything worse.”

Short-term decisions The majority of the top 25 sales during the first half of 2020 took place during the first quarter, before the pandemic fully upended the city’s real estate market. This includes the two largest deals of the year so far: Amazon’s $978 million purchase of the Lord & Taylor Building at 424–434 Fifth Ave. from WeWork and German reinsurance firm Munich RE’s $900 million purchase of 330 Madison Ave. from the Abu Dhabi Investment Authority. Only eight of the top 25 sales occurred during the second quarter,

RICH helped work out how to reopen safely without cutting corners on his principles.

the largest of which was the $492 million purchase by Hines and the National Pension Service of Korea of a 49.5% stake in 1 Madison Ave. from SL Green. The same trend held true for the year’s largest office leasing deals, with 35 closing during the first quarter compared with 15 in the second quarter, just seven of which were new leases. “The bulk of what was in there were just renewals,” said Brian Tabakin, senior marketing research manager at CoStar, “which I think, to some extent, is companies potentially making more interim shortterm decisions while they see what the landscape is going to look like.” The largest office-lease renewal of the year was the roughly 452,000 square feet the state Office of General Services took at Piedmont Office Realty Trust’s 60 Broad St. in the Financial District. The largest new office lease of the year was the roughly 241,000 square feet the Securities and Exchange Commission took at 100 Pearl St. in FiDi. Both took place in the first quarter. The biggest office lease in the second quarter went to TikTok,

LIZ CLAYMAN

FROM PAGE 3

their entire business models in the past few months.

ethical implications of going back to contributing 25% to global warming? I’d rather close than do that.” Nevertheless, some sustainable practices have been indefinitely suspended. Reusable coffee cups, which were warmly welcomed at coffee shops before the pandemic, are now widely shunned. And fast-casual chain Dig Inn, which last year launched a reusable to-go container program at its Washington Square Park location, has put the effort on hold for now.

High costs, tight margins Preexisting challenges also remain. Baldor Specialty Foods, a wholesale grocer based in the Bronx, nimbly pivoted to offering home delivery when the pandemic took hold. The company says its numerous sustainability initiatives, such as sending organic waste from prepared foods to Wilenta Feed in Secaucus, N.J., where it’s made into poultry feed, have not been affected.

Sustainable packaging, however, is still a dream. And may remain one for some time. “Plastic packaging is hard to get away from,” said Thomas McQuillan, Baldor’s vice president of strategy, culture and sustainability, who hopes suppliers will adopt a system of reusable plastic crates in the future. Right now, though, plastic and waxed cardboard are still the primary vessels Baldor’s shipments arrive in and, therefore, are sent out in. Cost is another big issue. Throwing less inventory into the trash definitely saves money, pointed out Christina Grace, CEO and founder of Foodprint Group, a consultancy that helps restaurants reduce waste. But many sustainable practices do cost more, particularly in the short term, and New York restaurants have notoriously tight margins, especially now. “The food-distribution economy runs on plastic,” said Rhodora’s Rich. “If you are going to opt out of that system, it’s more difficult.”

Hauling compost also can be more costly than hauling garbage, largely because, like a lot of sustainable practices, only certain vendors do it. But, as restaurateurs emphasized, there are huge costs, even if they’re not yet externalized, to sending trash to the landfill. “Tackling waste and building a more sustainable food system is more pressing than ever,” Grace said. “Climate change and Covid are related with unsustainable livestock practices being a major cause of both.” The government also plays a huge role in determining costs, through subsidies and regulation, Marcus pointed out, and could incentivize sustainable practices rather than unsustainable ones. And what better time than now to embrace change? “So much waste comes down to incentive, structuring, access,” Marcus said. “If restaurants are being asked to totally rethink their industries, the city can too.” ■

which took about 232,000 square feet from the Durst Organization at 151 W. 42nd St. LARGEST OFFICELEASE RENEWAL: The state Office of General Services’ deal for roughly 452,000 square feet at 60 Broad St.

Looking back The largest deals were more evenly split across the quarters during the previous two years. In 2019, 14 of the top sales happened in the first quarter, and 11 happened in the second quarter, while 22 of the top office leases happened in the first quarter, and 28 in the second. In 2018, 15 of the top 25 sales were in the first quarter, and 10 happened in the second quarter, while 20 of the top office leases were in the first quarter, and 30 took place in the second. Even the top deals of 2020 paled in comparison to the top deals of the past two years. The No. 1 sales in 2019 and 2018 both cracked the billion-dollar mark, with The Related Cos. and Allianz buying 30 Hudson Yards for about $2.2 billion last year and Google buying Chelsea Market for about $2.4 billion the year before. The top office leases were significantly larger as well. In 2019 Publicis Groupe led the way with a roughly 977,000-square-foot lease

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at 375 Hudson St., and in 2018 JPMorgan Chase had the biggest deal, with an 854,000-square-foot lease at 277 Park Ave. Although the rent law, glut of hotels and the Manhattan leasing record set in 2019 may have indeed

played a role in 2020’s declines in comparison with the previous two years, there is no denying that the pandemic was the dominant factor, Tabakin said. “With Covid, it obviously supercharged a decline,” Tabakin said. ■

18 | CRAIN’S NEW YORK BUSINESS | AUGUST 24, 2020

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PUBLIC & LEGAL NOTICES NOTICE OF FORMATION OF LIMITED PARTNERSHIP (LP) The name of the LP is: RIVERVIEW APARTMENTS REDEVELOPMENT COMPANY, L.P. Certificate of Limited Partnership was filed with the Secretary of State of New York (SSNY) office on: 05-22-2020. The county in which the Office is to be located: NEW YORK COUNTY. The SSNY is designated as agent of the LP upon whom process against it may be served. The address to which the SSNY shall mail a copy of any process against the LP is: 200 Vesey Street, 24th Floor, New York, NY 10281. The name and address of the General Partner is: HVPG RIVERVIEW GP, LLC, 200 Vesey Street, 24th Floor, New York, NY 10281. Purpose: any lawful activity. 11 HOYT STREET 29L, LLC. Arts. of Org. filed with the SSNY on 06/25/20. Office: New York County. SSNY designated as agent of the LLC upon whom process against it may be served. SSNY shall mail copy of process to the LLC, 1270 Avenue of the Americas, Suite 1808, New York, NY 10020. Purpose: Any lawful purpose. IL FIORISTA MANAGER LLC, Arts. of Org. filed with the SSNY on 07/ 29/2020. Office loc: NY County. SSNY has been designated as agent upon whom process against the LLC may be served. SSNY shall mail process to: Pryor Cashman LLP, Richard S. Frazer, Esq., 7 Times Square, NY, NY 10036. Purpose: Any Lawful Purpose.

Notice of Qualification of Intergate. Manhattan Office 31 LLC. Authority filed with Secy. of State of NY (SSNY) on 06/12/20. Office location: NY County. LLC formed in Delaware (DE) on 06/02/20. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: C T Corporation System, c/o Intergate.Manhattan Office 31 LLC, 28 Liberty St., NY, NY 10005. Address to be maintained in DE: C T Corporation System, 1209 N Orange St, Wilmington, DE 19801. Arts of Org. filed with the DE Secy. of State, 401 Federal St, #4, Dover, DE 19901. Purpose: any lawful activities.

Notice of Formation of NEWBERRY SC PRESERVATION, L.P. Cert. of LP filed with Secy. of State of NY (SSNY) on 08/03/20. Office location: NY County. Princ. office of LP: 60 Columbus Circle, 19th Fl., NY, NY 10023. Latest date on which the LP may dissolve is 12/31/2119. SSNY designated as agent of LP upon whom process against it may be served. SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 12207-2543. Name and addr. of each general partner are available from SSNY. Purpose: Any lawful activity. CARLEIGHâ&#x20AC;&#x2122;S SWEET TREATS, LLC, Arts. of Org. filed with the SSNY on 0 6/17/2019. Office loc: NY County. SSNY has been designated as agent upon whom process against the LLC may be served. SSNY shall mail process to: Johniece D. Erby, 502 West 177th St., Apt. 2D, NY, NY 10033. Purpose: Any Lawful Purpose. Notice of Qualification of IKEGUCHI HOLDINGS LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 07/20/20. Office location: NY County. LLC formed in Delaware (DE) on 03/31/16. Princ. office of LLC: 109 Greene St., Apt. 4A, NY, NY 10012. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC, Attn: Edward Ikeguchi at the princ. office of the LLC. DE addr. of LLC: Corporation Service Co., 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with DE Secy. of State, Div. of Corps., John G. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity. Notice of Qualification of AIG FUND GP HOLDINGS, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 07/02/20. Office location: NY County. LLC formed in Delaware (DE) on 06/01/20. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543. DE addr. of LLC: CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State of DE, Div. of Corps., The John G. Townsend Bldg., PO Box 898, Dover, DE 19903. Purpose: Any lawful activity. Notice of Qualification of NEWHOUSE REAL ESTATE PARTNERS LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 07/31/20. Office location: NY County. LLC formed in Delaware (DE) on 04/04/06. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC, P.O. Box 448, Syosset, NY 11791. DE addr. of LLC: c/o Corporation Service Co., 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with DE Secy. of State, Div. of Corps., John G. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity. Notice of Formation of VW On The Shelf, LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 06/ 25/20. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: the Company, c/o John Massoni, Van Wagner Group, LLC, 800 Third Ave., NY, NY 10022. Purpose: any lawful activities.

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20 | CRAINâ&#x20AC;&#x2122;S NEW YORK BUSINESS | AUGUST 24, 2020

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NOTICE OF FORMATION of O’Neil Enterprises, LLC. Arts of Org filed with Secy. Of State of NY (SSNY) on 6/23/20. Office location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to 455 Central Park W, Apt 7D, New York, NY 10025. Purpose: any lawful act. Notice of formation of FLATIRON DENTAL, PLLC. Arts of Org filed with Secy. of State of NY (SSNY) on 4/30/20. Office location: NY County. SSNY designated agent upon whom process may be served and shall mail copy of process against PLLC to 44 W 24TH ST. APT 22B, NEW YORK, NY 10010. Purpose: any lawful act. Notice of Formation of D & B/Ebrani LLC. Arts of Org filed with Secy. of State of NY (SSNY) on 1/29/20. Office location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to 19 Drury Lane, Great Neck, NY 11023. Prin. bus. addr: 50 W 47th St, NY, NY 10036. Purpose: any lawful act. Notice of Formation of JVR ART ADVISORY, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 07/23/20. Office location: NY County. Princ. office of LLC: 156 E. 79th St., #6A, NY, NY 10075. 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: Art advisory.

NOTICE OF FORMATION of TOIV CONDO LLC. Art. of Org. filed with the Secy of State of NY (SSNY) on 4/ 16/2020. Off. Loc.: NY County. SSNY has been desig. as agent upon whom process against it may be served. The address to which the SSNY shall mail a copy to is: 28 Liberty, New York, NY 10005. Reg. Agent: National Registered Agents, Inc., 28 Liberty, New York, NY 10005. Purpose: Any lawful act Notice of formation of Limited Liability Company. Name: Joy Twin Parks Developers LLC (“LLC”). Articles of Organization filed with the Secretary of State of the State of New York (“SSNY”) on May 15, 2019. NY office location: New York County. The SSNY has been designated as agent of the LLC upon whom process against it may be served. The SSNY shall mail a copy of any process to Joy Twin Parks Developers LLC, 40 Fulton St., Fl. 21, New York, NY 10038. Purpose/character of LLC is to engage in any lawful act or activity. Notice of formation of Limited Liability Company. Name: Joy Twin Parks Managers LLC (“LLC”). Articles of Organization filed with the Secretary of State of the State of New York (“SSNY”) on May 15, 2019. NY office location: New York County. The SSNY has been designated as agent of the LLC upon whom process against it may be served. The SSNY shall mail a copy of any process to Joy Twin Parks Managers LLC, 40 Fulton St., Fl. 21, New York, NY 10038. Purpose/character of LLC is to engage in any lawful act or activity.

NOTICE OF QUALIFICATION of KYNECT HOLDINGS, LLC. Authority filed with Secy. of State of NY (SSNY) on 3/ 23/2020. Office loc: NY County. LLC formed in TX on 2/7/05. SSNY designated agent upon whom process may be served & mailed to: CT Corp. System, 28 Liberty St., NY, NY 10005. Principal business address: 14675 Dallas Parkway #150, Dallas, TX 75254. Cert. of LLC filed with Secy. of State of TX loc: PO Box 13697, Austin, TX 78711. Purpose: Any lawful activity. Notice of Formation of FRIENDSHIP SC PRESERVATION GP, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 07/31/20. Office location: NY County. Princ. office of LLC: 60 Columbus Circle, 19th Fl., NY, NY 10023. 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., Albany, NY 12207. Purpose: Any lawful activity. Notice of Qualification of 5703 Hudson Yards, LLC. Authority filed with Secy. of State of NY (SSNY) on 06/ 02/20. Office location: NY County. LLC formed in Delaware (DE) on 05/ 08/20. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: 2532 Dupont Dr., Irvine, CA 92612. Address to be maintained in DE: GKL Registered Agents of DE, Inc., 3500 S DuPont Hwy., Dover, DE 19901. Arts of Org. filed with the DE Secy. of State, 401 Federal St. #4, Dover, DE 19901. Purpose: any lawful activities.

Notice of Qualification of PETRIDES & CO. LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 08/03/20. Office location: NY County. LLC formed in Delaware (DE) on 02/05/14. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o George Petrides, 900 Park Ave., Apt. 21A, NY, NY 10021. DE addr. of LLC: c/o Corporation Trust Co., 1209 N. Orange St., Wilmington, DE 19801. Cert. of Form. filed with Secy. of State, Div. of Corps., 401 Federal St. - Ste. 4, Dover, DE 19901. Purpose: Any lawful activity. Notice of Formation of PAB Special, LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 11/18/19. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: the Company, 163 W. 74th St., NY, NY 10023. Purpose: any lawful activities. Notice of Formation of TWJ Ventures LLC. Articles of Organization filed with the Secretary of State of NY (SSNY) on 8/17/2020. 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 the LLC served upon him/her is: JoAnne Kao. The principal business address of the LLC is: 305 Columbus Ave., #51 NY, NY 10023. Purpose: any lawful act or activity

Notice of Formation of MINH HOLDINGS II, LLCArts. of Org. filed with Secy. of State of NY (SSNY) on 08/04/20. Office location: NY County. 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., Albany, NY 12207. Purpose: Any lawful activity. FOREX NURSERY LLC, Arts. of Org. filed with the SSNY on 04/20/2020. Office loc: NY County. SSNY has been designated as agent upon whom process against the LLC may be served. SSNY shall mail process to: Corporate Filings of NY, 90 State St., Ste 700, Office 40, Albany, NY 12207. Purpose: Any Lawful Purpose. NOTICE OF FORMATION OF BEDNERS ACCOUNTING AND TAXES LLC. Articles of Organization filed with the Secretary of State of NY (SSNY) on 04/ 27/2020. Office Location: NEW YORK County. The principal business address of the LLC is 17 STATE ST 40TH FLOOR, NY, NY, 10004. Purpose: any lawful act or activity.

Notice of Formation of MBB Holdings, LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 04/17/20. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: 400 E. 56th St., Apt. 11L, NY, NY 10022. Purpose: any lawful activities.

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y AUGUST 24, 2020 | CRAIN’S NEW YORK BUSINESS | 21

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8/21/20 12:24 PM

FROM PAGE 1

“This is the season for people to move to the city, and it’s just not happening,” said Lior Rachmany, chief executive of Dumbo Moving & Storage, which has 400 movers. “We don’t see any of it.” In his 1949 essay, “Here Is New York,” E.B. White wrote that transplants “account for New York’s high-strung disposition, its poetical deportment, its dedication to the arts and its incomparable achievements.” “Natives give [the city] solidity and continuity, but settlers give it passion,” White observed. “Each embraces New York with the in-

$13 billion in 1980. Camila Grigera Naon would love to be one of the newcomers. She graduated from Syracuse University in the spring but deferred admission to the graduate program at Columbia Journalism School for a year after learning classes would be held online. “I didn’t want that type of experience,” she said from her home in Buenos Aires, Argentina. “New York is an incredible city that has so many stories to tell.”

On hiatus There are also practical concerns for those considering relocating to New York. Miller’s return is mucked up because she wants to visit apartments before signing a lease. That’s difficult because the state requires visitors like her to quarantine for two weeks. Rather than pay for a long hotel stay, she has put her move on hold. The pandemic’s effect on the city’s population won’t become clear until Census Bureau figures come out next spring, but new apartment leases in Manhattan fell by 23% in July, according to Douglas Elliman data. The vacancy rate more than doubled, to 4.3%, and could rise further should landlords begin evicting delinquent tenants in October, when a state-mandated pause is scheduled to end. Meanwhile, sales tax revenue in the city fell in the second quarter by

“THIS IS THE SEASON FOR PEOPLE TO MOVE TO THE CITY, AND IT’S JUST NOT HAPPENING” tense excitement of first love, each absorbs New York with the fresh eyes of an adventurer, each generates heat and light to dwarf the Consolidated Edison Company.” Fresh-eyed adventurers revitalized the city after about 1 million residents fled in the 1970s. From Fujian, China, to Fairfax County, Va., new arrivals helped the city’s population grow by 1.5 million residents during the past 40 years and spurred the economy to new heights, with the city’s budget soaring to $92 billion last year from just

23%

35%, according to the New York state comptroller’s office. DECLINE in new It just may be that the apartment leases city’s most sought-after in Manhattan in real estate is space for New July, according to Yorkers to stash their stuff Douglas Elliman while waiting out the pandemic somewhere else. Rachmany said storage lockers are nearly impossiFALL in secondble to find as far out as quarter sales tax John F. Kennedy Internarevenue in the city, tional Airport. according to the CubeSmart, which operstate comptroller ates self-storage warehouses around the city, has resumed raising rents on exist- versity towns like Ann Arbor, Mich., ing customers after freezing them Boston and Ithaca were among the in March. On a recent conference few places in the country to send call, its CEO described July as a more migrants here than they re“fabulous month.” CubeSmart offi- ceived, according to a 2018 study by cials think most New York custom- Baruch College. But much of what draws young ers eventually will return to the city people to New York has disapand empty out their lockers. “They’ll find a new apartment, peared, or at least gone into hiberprobably at a much lower rate, and nation. things will get back to normal,” an No work executive on the call said. Mayor Bill de Blasio certainly For aspiring performers, there’s hopes so. no work until theaters and clubs re“As we come back, many, many open. The jobs they rely on while people will sense opportunity,” he waiting for a callback have vansaid last month. “Younger folks, ished. At Branded Restaurants, particularly folks who are, you owner of the bar Duke’s and Big know, creative and entrepreneurial, Daddy’s Diner in Gramercy, manwanting to be where the action is, aging partner Michael Schatzberg that has not been changed. It may said staffing levels are down 90%. be paused a little while, but it hasn’t “I do wonder where the actors, been changed.” singers and dancers will work now,” Indeed, college graduates have he said. been one of the city’s biggest doProspects aren’t much better for mestic sources of new residents for young white-collar professionals. many years. In the last decade, uni- Schatzberg said he’s unsure if he’ll

35%

PEOPLE ON THE MOVE

FINANCIAL SERVICES

STO Building Group

Ridgewood Savings Bank

Fieldpoint Private

STO Building Group has added two senior executives to its management team. As CHRO, Claudia Healy Healy oversees STO’s global HR program, as well as serves as a key advisor to the executive management team. She joins STO after spending over two decades at Verizon. Mike Whetstine Whetstine comes to STO after 17 years at Kiewit, most recently as their corporate controller. At STO, Whetstine oversees everything from annual audits, financial reporting, and funding, to the efficiency of the company’s accounting systems.

James R. Jewett, Jr., was named First Vice President & Chief Investment Officer. He continues to manage the Jewett Bank’s $1.2 billion investment portfolio and head Ridgewood Financial Services and Ridgewood’s Retirement Plan Services Department. Annette Welsh was promoted to Welsh First Vice President & Auditor. She continues to lead the internal auditing team and the evaluation of the Bank’s internal controls and its compliance with regulations, policies, and procedures.

Private banking and wealth advisory boutique Fieldpoint Private welcomes Tripp Moore as its newest Commercial Banker, based in Greenwich, CT. He joins from Patriot Bank, where he was a Commercial Banking Team Leader, focused on Fairfield and Westchester Counties, and the New York metro area. Prior to that he served in commercial lending and private banking roles with banks including Northern Trust and First County Bank, and as a Financial Advisor with Morgan Stanley.

C O N TAC T

Preserve your career change for years to come.

Lauren Melesio Director, Reprints & Licensing lmelesio@crain.com (212) 210-0707

Brian Pascus contributed to this article.

To place your listing, visit www.crainsnewyork.com/people-on-the-move or, for more information, contact Debora Stein at 917.226.5470 / dstein@crain.com

FINANCIAL SERVICES

NEW GIG?

hire any interns or junior analysts for his investment firm specializing in food-service technology, because almost nobody is working at the office on Park Avenue. “Working virtually, I don’t know if I need that kind of help,” he said. For those looking for a silver lining, here’s one: Potential New Yorkers are finding that waiting out the pandemic at home is a pretty excruciating experience. Betsy Schneider said her stepdaughter has dashed back from the family home in Sharon, Mass., to the Bronx to take classes online at Fordham University. “Funny that making mixed drinks with parents, family dinners, The Great British Baking Show, arts and crafts projects, Zoom graduations and funerals weren’t enough to keep the kid in the suburbs of Boston,” Schneider said. ■

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ALAMY

NEW YORK

COMPANIES ON THE MOVE To place your listing, visit www.newyorkbusiness.com/companymoves or contact Debora Stein at 917.266.5470 / dstein@crain.com MILESTONES

Scharf Industries LLC East Rockaway, NY 888-964-8388 www.scharfindustries.com Congratulations on 10 successful years! As we approach this milestone we thank our staff for their commitment to excellence and maintenance of our high performance standards. We established Scharf Industries LLC ten years ago with the mission of offering select products to customers, while providing impeccable customer service. We are also proud to announce that Inc. magazine honored Scharf Industries as No. 2,650 on the list of the nation’s 5,000 fastest-growing private companies. Andrew Scharf and Daniel Scharf

WHAT’S YOUR COMPANY’S NEXT MOVE?

Create your own business headlines with Companies on the Move For more information, contact Debora Stein at 917.226.5470 / dstein@crain.com CrainsNewYork.com/ CompanyMoves

22 | CRAIN’S NEW YORK BUSINESS | August 24, 2020

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8/21/20 4:23 PM

OUT OF OFFICE

Seafood spots that recall the city’s coastal roots 10 restaurants specializing in fish and chips, crabs and clams

BY CARA EISENPRESS

lthough it’s easy to forget when you’re standing in the middle of, say, Midtown, New York is a coastal city. Local seafood restaurants have always served as subtle reminders, though, many featuring big decks offering casual outdoor eating by the water—a major plus, especially now. But thanks to the city initiative allowing sidewalk seating, this year even smaller restaurants in “inland” neighborhoods are giving residents a taste of island living.

ANDREW BUI

MAKIMAKI

A SALT & BATTERY

A SALT & BATTERY Noon to 9 p.m. daily This fish and chips restaurant fries up sole, whiting, cod, haddock, shrimp and scallops in a traditionally British fashion— with a thin crust—and serves them with chips. British beers including Newcastle and Guinness are available, and in the outdoor-dining space, customers also can order from sister spot Tea & Sympathy, where there’s shepherd’s pie and treacle pudding. Delivery and pickup orders as well as table reservations all can be made on the restaurant’s website. 112 Greenwich Ave., West Village

THE CLAM

BED STUY FISH FRY 11 a.m. to 11 p.m. Sunday through Thursday; 11 a.m. to midnight Friday and Saturday Four Brooklyn locations open for takeout and delivery serve a wide variety of fried fish with chips. There’s whiting, tilapia, catfish and salmon as well as shrimp, combination platters and sandwiches. There are also desserts such as carrot cake and peach cobbler. 940 Fulton St., Clinton Hill; 827 Nostrand Ave., Crown Heights;

BROOKLYN CRAB 4 to 9 p.m. Monday through Thursday; 4 to 10 p.m. Friday; 1 to 10 p.m. Saturday; 1 to 9 p.m. Sunday The restaurant has been able to reopen its three levels of outdoor seating by the waterfront in Red Hook thanks to new rules that ask diners to stay seated rather than mingle with other tables. The menu has all manner of seafood, from oysters to clam chowder and lobster. There are also snow, Dungeness, Alaskan king and Maryland blue crabs, which come steamed and with optional Cajun seasoning. 24 Reed St., Red Hook, Brooklyn THE CLAM Noon to 9 p.m. Tuesday through Sunday The Clam focuses on in-season offerings from the Eastern seaboard. The appetizer list offers lobster arancini (risotto balls) and shrimp teriyaki spring rolls as well as a raw bar. Entrees include spaghetti and clams, fried clam and lobster sliders, and baked halibut from Nova Scotia. 420 Hudson St., West Village ED’S LOBSTER BAR 11 a.m. to 9:30 p.m. Monday through Sunday The restaurant—where Ed’s Signature Lobster Roll is a favorite among THE CLAM connoisseurs—now offers outdoor tables as well as takeout and delivery options. On the menu, there’s lobster macaroni and cheese, lobster grilled cheese and lobster Cobb salad.

Other seafood options include fish and chips and shrimp tacos. 222 Lafayette St., SoHo FISH CHEEKS Noon to 9:30 p.m. Sunday through Thursday; noon to 10 p.m. Friday and Saturday This Thai restaurant specializes in seafood, with many of the dishes served to share, such as coconut crab curry, crab fried rice, fried fish with green herb salad and steamed fish with Thai herbs. There are several outdoor tables and also takeout. A second location, at the Time Out New York Market in Brooklyn, has reopened as well. 55 Bond St., NoHo

Midtown sushi lunches made mostly by automated rice makers and sushi rollers. When it became required for dining to move outdoors, MakiMaki worked with two neighboring restaurants to put up an awning, covering five tables. The menu includes its typical rolls and hand rolls, such as salmon avocado and spicy tuna, as well as a special Japanese sea bream carpaccio. 1369 Sixth Ave., Midtown

MAREA 4 p.m. to 9 p.m. daily The sidewalk eating at this formal seafood mainstay in Columbus Circle happens under a canopy of blue hydrangeas. The menu has been abbreviated but includes many of the dishes Marea is known for, such as fusilli with braised octopus JOHNNY’S REEF and a lobster and burrata 11:30 a.m. to 10 p.m. Sunday salad with basil and eggthrough Thursday; 11:30 a.m. to MAREA plant. Reservations can be 11 p.m. Friday and Saturday made through the restauAt the southern tip of City rant’s website, and it is also Island, where the Long Island doing delivery. Sound meets the city’s water240 Central Park S., Columbus Circle ways, Johnny’s Reef has a big outdoor area set with dozens of picnic tables overlooking the water. The restaurant offers a long TAVERNA KYCLADES list of seafood, served steamed or fried. Noon to 11 p.m. Monday through Thursday; The clam section includes steamed Little noon to 11:30 p.m. Friday and Saturday; Neck varieties and both Manhattan– and noon to 10:30 p.m. Sunday New England–style chowder as well as The eatery’s Greek-style seafood includes linguine with clams and baked stuffed grilled calamari and freshly cooked fish clams. Most orders come with either fries such as branzini and synagrida, served and coleslaw or Italian bread. with rice, fired potatoes, beets, lemon po2 City Island Ave., City Island, Bronx tatoes or horta (greens). Online ordering is available, and the restaurant also has locations in the East Village and Bayside, MAKIMAKI Queens. 11:30 a.m. to 9 p.m. daily 33-07 Ditmars Blvd., Astoria MakiMaki had been used to serving MAREA

A SALT & BATTERY

810 Halsey St., Bedford-Stuyvesant; 1716 Utica Ave., Flatlands

AUGUST 24, 2020 | CRAIN’S NEW YORK BUSINESS | 23

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8/21/20 4:29 PM

CORONAVIRUS ALERT

A CAREER RECOGNITION IS A

40s reckon with Covid-19 How Crain’s rising stars have handled the past 6 weeks BY CHRISTINE DARE-BRYAN

the most exciting business leaders in New ive weeks ago Crain’s honored our latest 40 Under 40 class, some of a radical change, whether turning York. During the pandemic, all the executives we featured have undergone relatives with Covid-19. We asked how their vodka distillery into a hand-sanitizer manufacturer or caring for them. ected aff has crisis the

RAVI Gupta

Co-founder and managing partner, Arena

“

We’ve shifted to multiday digital trainings, where we’re helping candidates and campaign staffers learn to translate their grassroots campaigns into online persuasion and digital voter outreach to win elections. In early May we’ll train hundreds more future campaign staffers through Zoom to take on the 2020 cycle—with a multiday Arena Academy for communications directors, campaign managers and digital directors. From coaching the Michigan caucus staff ahead of the March 10 primary to organizing online meetups with leaders like Dr. Abdul El-Sayed, we’re constantly finding new ways to use Arena’s resources to lift up Democratic candidates and causes.

NOMINATION AWAY!

CAROLYN Tisch Blodgett

Chief marketing officer, Peloton

“

I never imagined what life would look like today. As all parents know, trying to balance homeschooling and work is nearly impossible. For me that’s combined with being pregnant and my husband getting Covid. But I know we are lucky. I am trying to live in the present, and I hope my kids learn something by listening to all those hours of conference calls each day! At Peloton, we are fortunate to be able to continue to bring fitness and wellness into our members’ lives. We extended our digital free trial to 90 days, expanded our Comeback program to donate bikes to health care professionals, and created a relief fund for members who are struggling financially.”

Even with foresight bordering on ers and experienced decision-mak clairvoyance, we could not have ers, from all kinds of organizations selected a more appropriate time to and industries. honor the women who set the pace To find our honorees—a reporting in New York’s talent management effort begun before the coronavirus ranks. pandemic developed—we consult The front lines of corporate Amered with trusted sources in human ica in our current national health resources specifically and in busi crisis is staffed first and foremost by ness precincts generally. At the same executives with the responsibility for time we vetted those nominations the lifeblood of all businesses: peosubmitted by firms either headquar ple. Human resources and related tered in the New York metropolita n fields are in the “people business” of area or with a major presence in business, and women make up the the five boroughs and surrounding majority of those who work in these counties. challenging areas. Each of these notable women was The issues facing HR departments selected for her career accomplish today are as complex in nature and ments, her mentorship of others, as broad in scope as any in our and her involvement in community country’s history. So it comes as and industry organizations. no surprise that the 62 people on So just how are these talented and Crain’ss Notable Women in Talent committed professionals keeping Management list for this year are an the circuits of commerce pulsing? impressive group of thoughtful leadRead on! PAMEL A Y. ABNER

Vice president and chief administrative officer, office of diversity and inclusion Mount Sinai Health System

This section will highlight our area’s most innovative companies with stories about successful New York entrepreneurs, winning business strategies, and most importantly, astronomical revenue growth.

Pamela Abner has pushed enve envelopes in diversity and equity for 14 years. As vice president and chief administrative officer for the office of diversity and inclusion at Mount Sinai Health System, Abner conceives plans with industry leaders to cultivate inclusion across business lines. Using research and education curricu curriculums, Abner helps implement initiatives to identify demographic disparities and eliminate barriers to care and educate underserved groups. The certified unconscious bias educator is a regular presenter at forums, and she advises organizations from her own consulting practice. Abner’s leadership and management guidance was instrumental in Mount Sinai Health System’s ranking as the No. 1 health and hospital system on Forbes’ 2019 list of Best Employers for Diversity.

ALEX Pollack

Founder and CEO, ParaDocs Worldwide

“

ParaDocs was able to help out our health care community by donating 27,000 face masks and 400 bottles of hand sanitizer to first responders battling Covid on the front lines. Myself (still a New York City paramedic) and my team joined the FEMA Covid-19 task force to work 911 ambulances during the pandemic. We’re working on another large project to help health care workers.”

DEADLINE: Sept. 25

14 | CRAIN’S NEW YORK BUSINESS | APRIL 27, 2020

P014_P15_CN_20200427.indd 14

CHECK, PLEASE Hell’s Kitchen restaurants say the homeless are putting a damper on sidewalk seating

on the need for diversity ASKED & ANSWERED Goldman vet

CRAINSNEWYORK.COM

Minority-owned businesses ntracts frozen out of Covid-19 co the crisis equity in Mayor says the city prioritized speed over

ew York City snubbed minority-owned bilbusinesses when it doled out $3.4 the lion in Covid-19 contracts during the monpandemic, granting them just 5% of

ey, a Crain’s analysis has found. to busiA minuscule 1% of the bids went the analynesses registered as Black-owned, office ller’s comptro city the from data sis of slightly, to shows. That number rises only as Latino1.3%, for businesses registered

2020

Fast

WITH CLARITY founders Anubh Shah and Slisha Kankariya

This feature is a celebratory program honoring women lawyers who have made a difference in New York City in major ways.

DEADLINE: Oct. 16

d as owned and to 2.5% for firms registere Asian-owned. ized emphas has who Blasio, de Bill Mayor has said racial justice in his administration, pressspeed in getting supplies was the most ing issue for procurement.

Crain’s New York Business celebrates the 40 under 40 – an annual list of some of the most accomplished New York City-based business professionals under 40 years old.

ing Check out how these enterpris g young professionals are reshapin the city’s future

ISTOCK/CRAIN’S COMPOSITE

Page 15

NEWSPAPER

OUT OF OFFICE

GRAB A BURGER OUTDOORS IN THE 5 BOROUGHS

76% Manhattan

COMPANY DESCRIPTION REVENUE LOCATION GROWTH RATE

BEAR MATTRESS Maker of mattres ses, pillows and other sleep acce engineered to pro ssories mote faster reco very and better sleep (see page 18)

Hoboken, N.J.

YIELDSTREET A digital marketp lace for alternative finance, marine investments, incl finance, real esta te, commercial loan uding litigation other alternative asset classes s, fine art and

SIGA TECHNOLOG IES Creates pharma ceut received Food and ical solutions for antiviral sma llpox treatment; that counters the Drug Administration approva l of TPOXX, a dru ability of smallpo g in July 2018 x to be used as a bioweapon, PROGYNY Fertility benefits management com improve concept pany that designs ion solutions to fertility-related cost outcomes, shorten time to preg nancy and redu s (see page 30) ce HUNGRYROOT Personalized groc ery service geared customers share food preferences toward healthy eating in which and receive cura deliveries and reci ted weekly pes POLICYGENIUS Online insurance marketplace that customers to date has serv

ed more than 5

million

PAYABILITY Financing platform payment services that provides growth capital and for thousands of e-commerce com accelerated panies

9,179%

Chelsea

7,265%

Far West Side

Lenox Hill

NoMad

4,797%

Flatiron District

SoHo

6,363%

5,735%

4,212%

3,900%

3,350%

20 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 4, 2019

P020_CN_201911

04.indd 20

P001_CN_20200713.indd 1

CN019849.indd 1

9,788%

Midtown West

BEESWAX Builds advertising software to assist and marketing brands with reco strategies gnition, grow

INTERCEPT PHA RMACEUTICAL Develops biophar S maceutical trea tments for chronic breakthrough cam cholangitis perf e in 2014, when its treatment for liver diseases; ormed well in testi primary biliary ng

13,481%

Midtown East

WITH CLARITY A direct-to-consum to browse custom er engagement ring company that prototypes online allows shoppers their favorites at home, free of cha and try on 3D-printed versions of rge

THE LIST

PAGE 10

8% Outer boroughs

SOURCE: Crain ’s research

DEADLINE: Dec. 4

PAGE 27

CITY CENTER The vast majority of the Fast 50 comp anies are headquar tered in Manhatta n. Twice as many are based in the subu rbs as in the outer boro ughs.

1 2 3 4 FORTY 5 6 NOMINATE TODAY: 7 CrainsNewYork.com/nominations 8 9 10 DE BLASIO

NEW YORK BUSINESS 2021

Jeanelle Beach is an executive who understands a human resources department is more elemental than auxiliary. As the chief people officer at First, a global events agency, Beach has been integral to the company’s steady growth, driving numer ous account implementations and acquisitions. Working shoulder to shoulder with other company leaders, she has developed all the critical people programs, policies, benefits, and recruitment and training strategies that build and refresh a staff that aligns with First’s 21st-century business objectives. Stationed at the nexus of human interaction and business strategy, Beach sees her responsibility as advancing both the company and its people. Before joining First, she worked at Deutsche Bank and BDO Seidman .

16% Suburbs

UNDER

VOL. 36, NO. 25

Allie Barot’s more than 25 years of experience spans financial services, public and private investments, retail and real estate in Europe and the U.S. As executive vice president and chief human resources officer for RXR Realty in New York, she’s responsible for creating a business-aligned human resource s agenda and executing human capital management strategies that improve business performance and organizational effectiveness. Previously she worked in HR leadership at Guardian Life Insurance and UBS. Barot is a trustee on the board of the Duke of Edinburgh’s International Award Royal Foundation, which equips young people for life regardless of their background, culture, physical ability, skills and interests.

JULY 13, 2020

CORONAVIRUS ALERT

JEANELLE BEACH Chief people officer First

12 | CRAIN’S NEW YORK BUSINESS |M MARCH 30, 2020

DEADLINE: Oct. 1

PAGE 3

BY GWEN EVERETT AND GERALD SCHIFMA

in finance PAGE 14

This feature will highlight women who work as financial advisers or in leadership positions at advisory firms.

ALLIE BAROT Executive vice president, chief human resources officer RXR Realty

8/20/20 2:33 PM

$2.8

$8.2

$2.2 m

$706,

Less th $1 milli

$396,722