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

INDOOR DINING could be halted again over surge in Covid-19 cases PAGE 2

CRAINSNEWYORK.COM

NOVEMBER 23, 2020

THE FUTURE IS NOW How the coronavirus is aiding the rise of robot co-workers PAGE 7

DANIEL SCHREIBER AND SHAI WININGER of Lemonade, the No. 1 firm on Crain’s Fast 50 list

2020

CRAIN’S annual ranking of the metro area’s fastestgrowing companies

BEN KELMER

PAGE 15

POLITICS

Five bills to watch for in Albany next year What you need to know about marijuana legalization, the millionaire’s tax and more BY BRIAN PASCUS

s Covid-19 continues to wreak havoc on New York’s health and economy, the state Legislature will be digging deep to find ways to deal with a huge budget

NEWSPAPER

VOL. 36, NO. 40

gap. With Democrats fully in charge, practically everything is on the table—including legalizing recreational marijuana and a millionaires tax—when lawmakers return to Albany next year. The state faces an $8 billion budget deficit

in the fiscal year, which ends March 31, and a projected $16 billion revenue shortfall in the upcoming year. “I think most of 2021 will revolve around the budget,” said Sen. Michael Gianaris of Queens, deputy majority leader. “We have a

OUT OF OFFICE

CHECK OUT THE CITY’S HOTTEST EATERIES PAGE 27

deficit in the eleven figures, so the rest of our work will be around closing that gap.” The importance of managing the deficit is tied to the need for increasing revenue, a fact not lost on the state’s most important senator. “New York is hurting and we need federal help, but we are also going to have to take See FIVE BILLS on page 3

WHO OWNS THE BLOCK

TikTok offers hope on 42nd Street PAGE 5

HOSPITALITY

BY BRIAN PASCUS

ore restrictions are on the way for city businesses, including a possible halt of indoor dining, Mayor Bill de Blasio said last week. “I’m sorry to tell you, for the sake of those business owners it’s just a matter of time, and it’s very likely to be in the next week or two,” de Blasio said. The warning came a day after the city halted in-person learning in schools, and after Gov. Andrew Cuomo announced last Wednesday that the city might face more restrictions. “New York City will before long be in the orange-zone status,” de Blasio said, referring to Cuomo’s color-coded virus restriction zone system. “That means those restrictions are coming.” Under state orange-zone restrictions, indoor dining would cease and outdoor dining would be limited to four people per table.

puts restrictions on certain areas based on whether they are deemed high-risk areas for the coronavirus. “The governor made clear that it’s just a matter of time before indoor dining will close,” de Blasio said. “There’s going to have to be a lot of tough choices made to move forward.”

Dining outrage Last week the mayor announced a daily average Covid-19 positivity rate of 2.36% and a seven-day rolling average of 3.01%. He had said a 3% positivity rate would trigger school closures. The mayor has been criticized for shutting down the school system before closing the larger economy, especially given that the positivity rate in school buildings was less than 1%. The announced school closures are temporary. When students will be able to return to classrooms is not clear. “We will bring our schools back, but we will have to reset the equation,” he said. “We certainly see what’s happening around the country. We can’t just stand pat with a strategy that worked before, when conditions are changing.” The restaurant industry reacted with a mix of anger and disappointment to the mayor’s announcement. “This uncertainty is so brutal for restaurant owners and workers,”

“WE CAN’T ... STAND PAT WITH A STRATEGY THAT WORKED BEFORE, WHEN CONDITIONS ARE CHANGING” Bars, restaurants, gyms and other businesses should expect to receive new restrictions in the days ahead, de Blasio said. The color-coded system, which the governor unveiled last month,

said Andrew Rigie, executive director of the New York Hospitality Alliance. "The increases in Covid-19 cases are coming from social gatherings in people's homes and not highly-restricted indoor dining." Rigie said that any further restrictions need to be coupled with financial assistance for the owners and workers who are being displaced. Prior to the pandemic, more than 300,000 people were employed by the city's restaurant industry, according to the Hospitality Alliance, and since the pandemic began in March more than 140,000 people have lost their jobs, even as thousands have been hired back once outdoor dining opened over the summer. “If we get shutdown again, you're looking at 90,000 lays-offs again, just in time for the holidays,” Rigie added. Restaurant owners themselves are at a loss. Zach Glass and Keith Hamilton, who own Our Wicked Lady, a live music bar in Williamsburg, feel the city is penalizing restaurants because it can't get a handle on its own industries and citizens. “It just feels so arbitrary,” Glass

COMMERCIAL REAL ESTATE

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Indoor dining could be halted amid a surge in Covid cases

said. “It feels like there are agencies within the city and state government actively working against us.” Hamilton said the bar spent $2,000 of money it didn't have to outfit their rooftop bar for outdoor dining in preparation for the winter.

Put a fork in it “Businesses are spending money on stuff they don't need when things are constantly changing,” he said. “Cuomo announced this two days before things went into effect,

WEBCAST CALLOUT

Amazon inks major deal for 200K-square-foot Brooklyn delivery station BY EDDIE SMALL

mazon has signed another major lease in New York, taking 211,000 square feet in Brooklyn’s East New York neighborhood for a delivery station set to open during the second half of 2021, the company said last Wednesday. The station will be at 12555 Flatlands Ave., known as the Brooklyn Logistics Center, and comes on the heels of the e-commerce giant landing a deal at 2300 Linden Blvd., also in East New York. Amazon leased 975,000 additional square feet at Matrix Global Logistics Park on Staten Island earlier this fall as well. “We are excited to continue to in-

vest in New York state with a new delivery station that will provide efficient delivery for customers and create job opportunities for the talented workforce,” Amazon spokeswoman Emily Hawkins said in a statement. The Brooklyn delivery station will create hundreds of full-time and part-time jobs, and workers will earn a minimum of $15 per hour, according to Amazon. The deal is yet another sign that industrial real estate has held up relatively well in New York amid the pandemic, especially compared to the struggles the office and retail sectors have been going through. Leasing activity for the city’s indus-

when a lot of times you need weeks to prepare.” Both co-owners feel it's only a matter of time before the entire industry comes crashing down due to these virus restrictions, especially since there appears to be no federal stimulus money on the horizon. “Business needed this money two months ago. I wouldn't be surprised if 70% of the bars and restaurants in New York City are closed permanently,” Hamilton said. “If we go the whole winter it could be 90%.” ■

DEC. 1 CRAIN’S CFO FORECAST

trial properties increased by more than 70% during the third quarter, according to a report from CBRE.

Neighborhood growth Wildflower Ltd. purchased 12555 Flatlands Ave. for $25.3 million in 2018, according to property records. Adam Gordon, managing partner of the company, said he was pleased to be bringing Amazon to East New York. “We’re seeing a much more forward-thinking group of investors that support growth in all parts of the boroughs,” he said, “and I find it really heartening to be working here as these neighborhoods are growing.” ■

VIRTUAL EVENT Time: 11 a.m. to noon CrainsNewYork.com/ cfoforecast20

The pandemic has shaken the city’s economy and introduced and exacerbated challenges that we can expect to affect the business community next year and beyond. Today’s chief financial officers and other high-level executives need to navigate changes, champion novel technologies and recruit new talent—all while managing costs and profitability during these uncertain times. This webcast, moderated by Crain’s Publisher Fred Gabriel, will tackle these issues, with a robust discussion about what’s on the horizon.

CORRECTIONS ■ Etsy’s offices closed March 11. The date was incorrect in Asked & Answered, published Nov. 16. ■ Optum New York/New Jersey should have ranked ninth on Crain’s list of the largest physician groups, published Nov. 16. The organization has 1,350 New York–area doctors.

Vol. 36, No. 40, November 23, 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 | NOVEMBER 23, 2020

BUCK ENNIS, FLICKR, ISTOCK, HCR.NY.GOV

CUOMO

ADDABBO

COUSINS

FIVE BILLS

RENT RELIEF: SENATE BILL 8125A

FROM PAGE 1

action to put New York on a strong path. This includes creating revenue and at the same time helping small businesses and millions of people suffering,” said Mike Murphy, spokesman for Senate Majority Leader Andrea Stewart-Cousins of Yonkers. Here are five bills to watch in Albany that could determine both the budget and the direction of revenue and tax collection.

MILLIONAIRES TAX: SENATE BILL 7677

HE MILLIONAIRE’S Tax and Economic Equity Act proposed by Sen. James Sanders Jr., a Queens Democrat, would offer the tax increase on the wealthy that Albany Democrats have been tempted to pass for years. Gianaris said the Senate currently has a revenue group sifting through the details of how to close the budget gap, and said any serious attempt to deal with the crisis will require billions in federal aid or revenue-raising measures such as tax increases on the wealthy. “Cutting services that people rely on does more damage to our recovery than raising taxes on the wealthy would do,” he said. The bill proposes raising tax rates for those who make more than $1 million per year. Incomes between $1 million and $5 million would see their tax rate change from 5.85% or 8.82% to 9.62%. For incomes between $5 million and $10 million, the tax rate would jump from 8.82% to 10.32%. And for incomes of more than $10 million, the rate would change from 8.82% to 11.32%. A tax increase on millionaires is popular among legislators from New York City, but there are questions as to how the increases will be received by Democrats on Long Island and in the Hudson Valley. “Some of their members aren’t as hot on new taxes as their New York City members might be,” political observer John DeSio said. Ultimately, Gov. Andrew Cuomo would need to sign the bill, and he has resisted such a measure.

LEGALIZED RECREATIONAL POT: SENATE BILL 1527C

ASSACHUSETTS has legalized recreational marijuana, and New Jersey voters approved the idea this month. The governor’s office said it expects the legalization of pot to bring in $300 million in tax revenue. Sen. Liz Krueger’s marijuana bill would levy an 18% excise tax on the regulated sale of cannabis in the state and create a revenue fund. “Allowing adult personal use, with appropriate regulation and taxation, and reinvestment in communities disproportionately impacted by the drug war, is the kind of smart, responsible, fact-based drug policy that we desperately need,” Krueger said. Her bill also would repeal certain criminal provisions related to the selling of the drug and would seek to create a state fund for drug treatment and public education.

GIANARIS

BUSINESS INTERRUPTION INSURANCE: SENATE BILL 8211

NOTHER BILL that could receive support across the aisle in Albany is a business interruption insurance reform law. Brooklyn Assemblyman Robert Carroll is backing a bill that would void insurance clauses that don’t let businesses file claims because of a carveout for the pandemic. Sen. Andrew Gounardes of Brooklyn has a prospective bill in the Senate that voids virus exclusion clauses. The bill is popular in the small-business community. Many mom-and-pop shops consider it necessary for their survival. “Business interruption insurance is the only issue that actually matters to save businesses,” said Robert Schwartz, owner of Eneslow, which sells shoes and orthotics. “Civil authority shut us down on March 19, and we’re being squashed. The federal government hasn’t told you ‘Here’s some money to keep you going.’ We went from 100 to zero.” Schwartz said businesses have lost too much time and revenue to keep up with their fixed costs. The New York City Hospitality Alliance supports the legislation. “If we get business interruption insurance paid, then it would help pay for rent,” said Andrew Rigie, head of the alliance. “Business interruption insurance and rent relief can help save countless restaurants and bars and nightclubs throughout the city.”

NE BILL SURE TO DRAW controversy is the 90-day suspension of rent payments for residential and commercial tenants affected by Covid-19. It was proposed by Gianaris at the height of the pandemic in the spring. Last week Gianaris wrote a letter to President-elect Joe Biden seeking to gain federal support for a plan to provide financial relief to renters and businesses. Gianaris proposes suspending all rent payments for small businesses affected by Covid-19 and suspending certain mortgage payments by landlords of those tenants for 90 days from the time the law is passed. “We need robust and targeted residential and commercial rent relief, ideally in the form of rent cancellation and forgiveness,” Gianaris wrote. The Hospitality Alliance said restaurants will not be able to pay back several months of deferred rent or even make pre-pandemic levels of rent, because they have been operating at 50% capacity or less for too long. “We need to talk about rent forgiveness, not deferrals,” Rigie said. Property owners and the members of the real estate industry oppose such a measure. “Senator Gianaris is out of touch with reality,” said Joseph Strasburg, president of the Rent Stabilization Association, which represents 25,000 landlords. Strasburg argued Gianaris’ measure would defund landlords and set off a housing crisis. The RSA said it would like to see the state’s Division of Housing and Community Renewal distribute any remaining funds in the Rent Relief Program while also expanding access. His suggestion was echoed by the Real Estate Board of New York, which supports a bill sponsored by Manhattan Sen. Brian Kavanagh that would offer a tax credit for landlords who reduce or forgive rent for their business tenants. “It’s a voluntary program, so we want to make sure it’s crafted in such a way that encourages tenants and property owners to utilize it,” Reggie Thomas, REBNY senior vice president of government affairs, said.

SPORTS BETTING: SENATE BILL 17D

N ALTERNATIVE WAY to raise revenue could come from unorthodox legislation that has long been ignored by Albany, namely the legalization of sports betting. Sen. Joe Addabbo Jr., who sponsored the bill, estimates $1 billion in revenue per year from the legalization of gambling on professional sports. Addabbo’s bill would implement an 8.5% tax on sports wagering gross revenue and would require a licensing fee of $12 million for each agent or company that is allowed to conduct mobile betting. One hiccup in the legislation is the “integrity of the game” clause, according to Assemblyman Robert Carroll, that would give the NBA, the NFL and other major American sports leagues a taste of the action. “We’d just give money to billionaire sports leagues for God knows what,” Carroll said. “It’s a handout to sports leagues, and it’s insanity.” Cuomo has not been a fan of legalizing online gambling. NOVEMBER 23, 2020 | CRAIN’S NEW YORK BUSINESS | 3

POLITICS

Schumer talks Gateway, Trump and Covid-19 relief

enate Minority Leader Chuck Schumer believes the only thing keeping New York from recovering from Covid-19 is money and time. “If I were buying futures in New York City, I wouldn’t buy a one-year future, but I’d sure buy three-year futures,” he said. “We always bounce back.” Schumer joined Crain’s New York Business last week for a conversation that covered infrastructure projects, a trillion-dollar federal stimulus plan and the challenges of working with Republicans in Washington. “If I were majority leader, [former Vice President Joe] Biden were president and Mitch McConnell were in the minority, we’d get this

under GOP leader McConnell. Schumer noted that the revised bill includes $500 billion in state and local relief, with half of the money going to the states and half going to localities. Schumer said that more than $20 billion would be allocated to New York state, $7.5 billion would go directly to New York City, and a significant amount of the $32 billion in the bill that has been set aside for public transit would go to the beleaguered Metropolitan Transportation Authority. “New York City would do very well,” he noted.

Vital project Schumer spent most of the discussion addressing the need for the federal government to support the $12.9 billion Gateway tunnel renovation for Amtrak, a massive infrastructure project that seeks to build two new rail tunnels beneath the Hudson River and then renovate the existing ones, which are both more than 100 years old. “Gateway is a vital project to the future of the New York metropolitan area economy,” Schumer said. “All the trains that travel from Boston down to Washington depend on these two tunnels.” It was on the subject of Gateway that Schumer reserved his stron-

“BY THE TIME THIS GATEWAY TUNNEL IS BUILT, NEW YORK WILL BE BOOMING” robust Covid bill, the full Heroes bill, done rather quickly,” he said. “Joe Biden has said his No. 1 priority should he become president is Covid relief.” The four-term senator highlighted the need for the Senate to pass some portion of the House of Representative’s multitrillion-dollar Heroes Act, which has languished

CRAIN’S FORUM ON THE UPCOMING CITY ELECTIONS Join Crain’s on Wednesday, Dec. 16, from 3 to 4 p.m. for a discussion with political observers George Arzt, Monica Klien and Yvette Buckner about the upcoming city political races. To register for this free event, visit CrainsNewYork.com/ decbusinessforum

BLOOMBERG

BY BRIAN PASCUS

gest criticisms for President Donald Trump, whom he expressly blamed for delaying what would be one of the largest public works projects in the country. “Donald Trump has single-handedly blocked Gateway,” Schumer said, describing Trump as “a vindictive, nasty guy.” Schumer pointed out that Trump thought he could originally trade federal approval on Gateway for immigration restrictions, and his transportation secretary, Elaine

Chao, has refused to sign an environmental impact study that triggers the project’s federal approval. “It was a despicable move,” he said. “It hurt New York, and it hurt the national economy.” An incoming Biden administration is expected to free up this federal money and offer support for Gateway, along with the passage of the stimulus measures that will help New York City. It is this infrastructure project in particular that Schumer believes

will propel the city forward even after the pandemic passes. The bornand-raised New Yorker was optimistic that the city would reorient itself around a new type of economy, just as New York has recovered from other decade-altering challenges before, notably 9/11 and Superstorm Sandy. “By the time this Gateway tunnel is built, New York will be booming,” Schumer said. “We cannot say no because of Covid. We have got to push full speed ahead.” ■

THANK YOU Crain’s acknowledges the presenting sponsor of the business forum, United Airlines, as well as its corporate members, Brown & Weinraub, BTEA, Cozen O’Connor, GCA, George Arzt Communications, Greenberg Traurig, Kasirer, Nicholas & Lence Communications and Patrick B. Jenkins & Associates. Without their support, this business forum would not have been possible.

REAL ESTATE

MEDIA

With Gowanus rezoning on the horizon, developer plans mixed-use project

KC Crain named CEO of Crain Communications

BY EDDIE SMALL

NYC DEP

nother developer is aiming to build in Gowanus ahead of the neighborhood’s anticipated rezoning. Watermark Capital has filed plans with the city Department of Buildings for a 48-unit, 9-story mixed-use building in the neighborhood, at 582 Fourth Ave. The project, designed by ND Architecture, would stand 106 feet tall and be split between about 33,000 square feet of residential space and 5,000 square feet of commercial space. The property is currently home to a single-story transportation building. Yoel Werzberger, the listed point of contact for Watermark, did not respond to a request for comment. Watermark is also behind the luxury residential building at 321 Wythe Ave. in Williamsburg, which stands 19 stories tall and has 130 residential units. Active listings show rents ranging from $3,790 to $3,900, according to StreetEasy. Avery Hall Investments filed

plans this fall for a roughly 70,000-square-foot commercial building at 499 President St. in Gowanus. The company also has plans for a 150,000-square-foot mixed-use project at 272 Fourth Ave. in the neighborhood.

Community engagement There has been talk of rezoning Gowanus for years, and although the Covid-19 pandemic slowed

4 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 23, 2020

down the already lengthy effort, Deputy Mayor Vicki Been announced recently that the administration would relaunch the rezoning’s community-engagement process and would aim to start its landuse review in January. Questions and concerns over whether the Gowanus and Wyckoff Houses, two local public housing complexes, will receive funding for upgrades as part of the rezoning have emerged as a major sticking point. Mayor Bill de Blasio recently announced that his administration would move forward with efforts to rezone SoHo and NoHo. Plans there include up to 3,200 new units of housing. ■

KC CRAIN HAS BEEN named CEO of Crain Communications, the Detroit-based, family-owned media company that is the parent of Crain’s New York Business, Automotive News and nearly 20 other trade and business titles in North America, Europe and Asia. He had been president and chief operating officer. His father, Keith E. Crain, remains chairman of the board. The action was ratified at the company’s annual CRAIN board meeting Nov. 18. “We’re proud of the 104-year legacy of our company and of the continued leadership from within our family,” the elder Crain said. “KC has done a terrific job of steering our company in recent years, including strategic acquisitions. This year in particular has been challenging for many media companies, and KC and his entire team have led us to a successful year.” A companywide effort to increase paid subscribers began even before the pandemic. The result has been a 50% increase in new paid subscribers for 2020. “Leading the company my grandfather started 104 years ago is

a true honor,” KC Crain said. “Our audiences have never been stronger, and the growth prospect of this business is really exciting. Our platforms continue to evolve in amazing ways to serve our readers.” Crain started in the family company as a reporter for Automotive News and worked in a series of roles, including group publisher, executive vice president and director of corporate operations. The company’s brands have been serving niche audiences for decades in print and now digital formats. As president, he oversaw the acquisition in 2019 of GenomeWeb, an all-digital news source based in New York that serves a global community of scientists, technology professionals and investors. Active in many civic and business activities, Crain is board chair for the Detroit Children’s Fund. He also sits on the boards of the Young Presidents Organization and the College for Creative Studies. He earned a bachelor’s in communications from Denison University. He and his wife, Ashley, live in Bloomfield Hills, Mich., with their four daughters. ■

WHO OWNS THE BLOCK

MIDTOWN TECH TENANT ON TRACK

151 W. 42ND

Federal ban not withstanding, TikTok offers hope on 42nd Street BY C. J. HUGHES

NOVEMBER 23, 2020 | CRAIN’S NEW YORK BUSINESS | 5

BUCK ENNIS, GOOGLE MAPS

ikTok’s deal for 151 W. 42nd Street—a rare bright spot in a 151 W. 42ND ST. bleak office leasing market— In 1999, this 47-story spire opened during Times Square’s appears to be on track, despite 130 W. 42ND ST. transition from seedy theater district to international tourrough treatment of the social media ist attraction. With original tenants decamping for points One of Midtown’s first skyscrapers, this slender, 30-stocompany by the White House. downtown and west, the Durst-owned building in 2018 ry tower, completed in 1918 and once called the Bush TikTok is completing a renovation of completed a renovation totaling $150 million, $37 million its multifloor space at the Midtown Tower, was controlled by the same family from the early tower, which is owned by the Durst Orof which went toward amenities. Among the new offer1980s to 2013, when an entity based in Qatar leased the ganization, according to a source close ings is a fourth-floor area behind Times Square’s Nasdaq property for 85 years for $158 million to a joint venture of to the deal. Most furniture has been insign—once used for storage—with a pool table, a coffee Tribeca Associates and Meadow Partners. A lobby renovastalled. station and a curved, fern-planted wall. Durst also created tion, to make its ceilings taller, followed. Vanke Holdings, The deal comes as the company is roof terraces. Law firm Skadden and magazine publisher the Chinese firm behind condominiums including 11 Hoyt battling President Donald Trump, who Conde Nast were the only two tenants in the 2000s. Toin Downtown Brooklyn, bought a stake in the Gothic-style for months has threatened to ban the day, the roll features Nasdaq, BMO Capital Markets and property for $56 million in 2015. This month the building China-based company over security Ampersand, a television-focused tech company. TikTok, was offering a three-year sublet on its 18th floor. concerns. 151’s newest tenant, which has taken the five top floors The standoff, in a sense, has highplus two near the base, moved in during the summer. lighted the outsize role tech companies have played in the current market, where deal flow has been minimal. Indeed, if current trends hold, the TikTok transaction, at 232,000 1101 SIXTH AVE. 142 W. 42ND ST. square feet, will count among the The thoroughfare’s “Avenue of the Americas” top five new leases of the year. The prominent 10-story corner property, which is on name has fallen out of favor in recent decades; “Tech is becoming a bigger the National Register of Historic Places, has had many medallions with names of Latin American counand bigger piece of the Manhatlives, including as the offices of Newsweek. Istithmar tries are rusted or missing. Meanwhile, the area tan market,” said Frank Wallach, World, an investment arm of the United Arab Emirates has added several offices with vanity names, a senior managing director at government, purchased the beaux-arts-style building in including at this address, known as One Bryant brokerage Colliers International. 2006 for $376 million but defaulted on a loan, losing Park. The 55-story, 2.4 million-square-foot tower “They used to congregate around the property. In 2010 a group that included Ashkenazy has eco-friendly features. Rainwater is collected the Flatiron Building, but not Acquisition and Highgate Holdings paid $181 million for toilets, and an on-site power system proanymore. There’s no single infor the red-brick edifice, which was later carved up into duces 65% of the electricity at the decade-old dustry tied to one neighbora 14-story hotel and two retail condos. In 2011, FelCor building. It’s owned by Durst, whose previous hood.” Lodging Trust (now part of RLJ Lodging Trust) bought structure at the site sported a well-known naIn an earlier era, TikTok, which the hotel portion for $115 million. Today The Knickertional-debt clock. In 2004, Durst moved the in four years has attracted more bocker Hotel offers 330 rooms, though Covid-19 has clock around the corner. Bank of America is the than 1 billion users with its shorttemporarily shuttered its restaurants and bars. main tenant; Durst is also headquartered there. form videos, might have rubbed elbows with law and accounting firms in its Midtown berth. But the stretch is now bookended by Microsoft, at 640 Eighth Ave., and Salesforce, at 1095 Sixth 136 W. 42ND ST. Ave., facing Bryant Park. BRYANT PARK At 151 W. 42nd St., which has unThis site, which was sold to the Ashkenazy/Highgate dergone a $150 million reinvenIn 1980, when this nearly 10-acre rectpartnership as part of the deal for the next-door Knickertion, TikTok has taken seven floors angle was more ragged and crime-ridbocker, was developed with its own hotel. Then, in 2014, including the top five of the 47-stoden, the city turned to a nonprofit Highgate sold it to DiamondRock Hospitality, a publicly ry spire. This year Facebook likely funded by local landlords to improve traded firm, for $122 million. Today the skinny 36-story will still claim the top new deal, it. Four years and $16 million later, a spire is home to a 282-room outpost of the Hilton Garwith its 730,000-square-foot lease redesigned park emerged. Planned acden Inn chain. A greeting on its phone this month said of the former Farley post office tivities now are numerous. Winter offerthe hotel had “temporarily suspended operations” but building. ings include the skating rink and holiwould accept reservations for dates after Christmas. A Not all New York tech firms are day market. Bank of America is a major 166,000-square-foot retail space—a commercial condo expanding, however, at a time sponsor. The unusual model of improvbought by Walton Street Capital, a private-equity firm in when many employees continue to ing public spaces with private money Chicago, for $66 million in 2014—is empty and available. work from home. Zillow, for inwas later mimicked at parks elsewhere. stance, is marketing sublet space at 1250 Broadway, at West 31st Street. Overall, through the third quarter, just 14.8 million square feet of office 1095 SIXTH AVE. space had been leased in Manhattan— which puts 2020 on track to be the Completed in 1974 for New York Telephone and more recently slowest year since 2000, Colliers said. controlled by Verizon, this glassy 41-story high-rise once was Asking office rents average $77 per known as Three Bryant Park. In the late 2000s it underwent a square foot. $260 million renovation, which replaced its dark-toned facade Trump issued an executive order to with greenish glass. Canadian investor Ivanhoe Cambridge and force the sale of TikTok over concerns Callahan Capital Partners of Chicago bought the building in the Chinese government would access 2015 from the Blackstone Group for $2.2 billion. Real Summit U.S. users’ personal information. Investment, an arm of Hong Kong’s central bank, grabbed a miCourt rulings have allowed TikTok to nority stake in 2016 for about $1.1 billion. Today the address, a stay online, and the Trump adminiscommercial condominium with several units, is known as Salestration extended the deadline for a sale force Tower because the software company is its main tenant. to Nov. 27. Lloyds Bank is a tenant. A Whole Foods anchors the base. ByteDance, TikTok’s parent company, had no comment. ■

IN THE MARKETS

Ann Taylor write-down points to next wave of big pandemic losses

Many of the assets that define companies aren’t worth as much as executives once thought

BLOOMBERG

Assets on a company’s balance nn Taylor, one of the most durable names in sheet are typically examined annufashion, has lost a lot of ally to see if they’re generating the its cachet. We now have a expected levels of cash. If they good idea of how much, thanks to aren’t, and there’s no reasonable path to recovery, accountants deem the company’s accountants. Ascena Retail Group, which owns them “impaired” and require comAnn Taylor and other brands, re- panies to write down their value. The write-downs don’t cently warned that it result in cash charges— would write down the valmeaning companies ue of its trade names and don’t write a check when related assets by as much they report them—but as $325 million. That the losses are real and would represent a 95% can crush earnings. wipeout—tangible eviThe mother of all writedence that the Ann Taylor downs took place in 2003, brand, created in New Hawhen AOL Time Warner ven, Conn., in 1954 by lowered the carrying valshop owner Richard LiebAARON ELSTEIN ue of America Online by eskind, has run its course. $46 billion, resulting in a It’s also just a drop in a cascade of write-downs as corpo- $99 billion annual loss. The front rate America begins to tally up the page of the New York Post featured damage done this year by the pan- Porky Pig saying “That’s AOL, folks!” Last year Kraft Heinz took a $15 demic. The economic cost of Covid-19 is billion write-down after its merger most often understood in terms of didn’t produce the expected benelost jobs and lost sales. But compa- fits and consumers lost their appenies soon will be reporting poten- tite for Oscar Mayer wieners. There is much more where they “THE RISK OF FUTURE MATERIAL came from. The CFA InstiIMPAIRMENTS HAS BEEN tute reported in January that SIGNIFICANTLY HEIGHTENED” public company tially large losses as they write down balance sheets hold $5.6 trillion the value of their assets. The pan- worth of goodwill, equal to 9% of all demic has revealed that many of the assets held by S&P 500 companies. things that make up companies—be Goodwill reflects how much a comthey brand names, flight routes or pany paid over market value to acacquisitions—aren’t worth as much quire a rival. It’s prone to writedowns when mergers fail to deliver as executives thought.

their promised synergies—or when a pandemic obliterates assumptions about a business.

Heaps of goodwill AT&T is the reigning champ of goodwill, the CFA Institute reported. It is carrying about $140 billion in goodwill, much of it from its acquisition of Time Warner. The pandemic has hit most of the entertainment business hard, and two weeks ago WarnerMedia said it would let 1,200

employees go. Will Warner produce a sequel to the epic AOL Time Warner write-down? Stay tuned. Walt Disney also appears vulnerable. The Disneyland park and resort in California remains closed, while Disney World in Florida is capped at 35% capacity. The company recorded a $5 billion writedown this year related to its international television channels, but it still carries about $80 billion in goodwill, much of it from the acqui-

sition of 20th Century Fox studios. United Airlines wrote down the value of its China routes by $130 million this year. The company has $7.4 billion in goodwill and intangible assets and warns more writedowns loom. “The risk of future material impairments has been significantly heightened as a result of the effects of the Covid-19 pandemic,” the company said in a regulatory filing. Fasten your seatbelt, everyone. ■

REAL ESTATE

Dr. Oz cut off sister from thousands in Manhattan rental income, lawsuit says

ontroversial TV personality Dr. Mehmet Oz does not play nice in the sandbox, his sister alleges. The health expert, who is known for his own daytime talk show and a stint on The Oprah Winfrey Show, is accused of depriving his sister of rental income from a pair of family-owned apartments in Manhattan, according to a lawsuit filed last week in state Supreme Court in Manhattan. Nazlim Oz, who lives in Turkey,

ment at 40 E. 94th St. and one at 415 E. 54th St.—and which Dr. Oz began to manage the same year. Nazlim Oz became a member of the LLC in 2011, after her parents transferred their ownership stakes to her and her sister, court documents show.

‘Potential personal gain’

Nazlim Oz’s membership entitles her to receive a financial report from the company and distributions at the end of each fiscal year. She had been getting about $180,000 per year from the LLC since 2011, THE SIBLINGS BUTTED HEADS the lawsuit says. But after the OVER HOW THEIR FATHER’S patriarch of the family died in ESTATE WAS HANDLED February, Dr. claims that the siblings’ parents Oz and Nazlim Oz butted heads created an LLC in 2009 that owns over how she handled their fathe two properties—one apart- ther’s estate in Turkish probate 6 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 23, 2020

court, the suit claims. Since July, Nazlim Oz has not received financial reports from the LLC, nor the $15,000 per month in rental income she is entitled to from the two LLC-owned properties, she alleges in the suit. Dr. Oz stopped providing financial reports and money from the LLC due to the siblings’ quarrel over their father’s estate, despite it having nothing to do with the LLC, the suit says. “In effect, he is improperly withholding her lawful payments here for his own potential personal gain in the Turkish probate proceedings,” the lawsuit says. She is suing Dr. Oz for breach of fiduciary duty and asking the court to remove him as manager of the LLC. Representatives for Nazlim Oz did not respond to a request for comment. “Our family, including my moth-

DR. OZ BLOOMBERG

BY EDDIE SMALL

er, is suing my youngest sister, Nazlim, over my late father’s estate, including NYC-based properties,” Dr. Oz said in a statement. “My father legally placed me as manager of this entity, so although I do not

own or desire these properties, I am obliged to hold all the income safely in escrow until the courts here and in Turkey have decided the merits of the ongoing litigations.” ■

TECHNOLOGY

How Covid is aiding the rise of robot co-workers

wo new workers started in the claims department at Protective Insurance in the spring: Roxy and Rex. Roxy processes information needed for claims letters to customers of the transportation-industry insurer. Rex organizes the thousands of documents—claims and correspondence—that the publicly traded company receives daily. They are referred to as co-workers, but neither Rex nor Roxy is human. They are software robots developed by Roots Automation, a

meetings. Automation has been growing in the sector for years, but the combination of remote work due to the Covid-19 pandemic and the desire to cut costs has pushed the technology’s growth to “lightning speed,” as described in a speech last month by Patrick Harker, president of the Philadelphia Federal Reserve Bank. The Protective robots are designed to help workers avoid repetitive, time-eating tasks. “We’ve been able to take our existing staff and train them into new roles,” said Lea Lundquist, vice president of claims at the Indiana company. Roots Automation was founded by Chaz Perera, former chief transformation officer at AIG, and John Cottongim, former automation director at candy company Mars. Roots bots can handle invoicing, data entry and similar tasks. The robots cost about $50,000 per year. Machine-learning software allows them to adjust to the daily rhythms of the workplace. If someone is slow to respond by email in the early morning, the bot takes note and holds off on 8:30 a.m. requests. Perera, the company’s CEO,

“NEW YORK COULD SEE A LOT OF NEW JOBS BECAUSE OF AUTOMATION” startup in Lower Manhattan that this month raised $3.2 million from investors to expand its concept. The company pitches “digital co-workers” as a service. Automation typically conjures images of the Jetsons and physical robots, but much of it is happening through software that speeds daily business tasks such as loan-application processing and scheduling

said the goal is to create a more human-feeling work bot. “Within 10 years, office environments will be 50% humans and 50% bots,” Perera said. “We think these bots should be able to learn from you—which is what we naturally do as co-workers.”

Job security? The giant in software automation is UIPath, which is valued at $10 billion by its investors and was ranked this month by Crain’s as one of New York’s largest private companies. UIPath, which is part of the software industry’s robotic process automation sector, is working with a finance team led by JPMorgan Chase to file an initial public offering early next year, Bloomberg has reported. Gartner Research projects global spending on RPA software to grow 20% next year, to $2 billion total. “Everyone will soon be working with a bot or automated machines for some part of their job,” said Anna Tavis, who teaches a course on automation at the NYU School of Professional Studies. The question is whether our new robot co-workers are here to help us or replace us. Perera predicts an extra job will be created for each role lost because of automation.

BLOOMBERG

BY RYAN DEFFENBAUGH

An October report from the World Economic Forum went a step further. It estimated that automation technology will displace 85 million workers by 2025, including roles in data entry, bookkeeping and auditing. The report estimated, however, that automation could create 97 million new jobs in the same time frame, focused in the data sciences, digital marketing and software development fields. “New York could see a lot of new jobs because of automation, but it

is far from a given that the people losing their job will benefit from that,” said Jonathan Bowles, executive director of the Center for an Urban Future. “There is going to be an enormous mismatch in skills.” The Manhattan-based think tank estimates that at least 450,000 jobs in New York could be at risk. That’s why the group is calling on both the state and the city to invest in workforce training. “We don’t have to run scared because of automation,” Bowles said, “but we have to be prepared for it.” ■

COMMERCIAL REAL ESTATE

Ashkenazy takes on Gindis in a battle for cash, reputation

he family behind bankrupt department store Century 21 is starving developer Ben Ashkenazy of cash for his pandemic-racked real estate empire and smearing his name in the industry, according to a lawsuit he filed in state Supreme Court in Manhattan. Members of the Gindi family, who have partnered with Ashkenazy on several properties, meanwhile, claim the billionaire builder “stole millions of dollars” after he came to them to help him bridge the gap in income left by the pandemic, according to the suit. Ashkenazy, in turn, has accused the Gindis of diverting money from their beleaguered business for their own personal gain. The situation started when the billionaire businessman reached out to real estate partners, asking for nearly $9 million in cash to help make up for income that normally would come from rent. The Gindis are passive investors in seven of Ashkenazy’s North American properties, including a few in New York City: four commercial units at 1991 Broadway, retail space at 2067 Broadway and a retail building in Queens. After Ashkenazy made capital calls at each of the seven properties, the Gindis’ share totaled $4.5 million, but they refused to give him

any money despite their contractual obligations, the complaint says. That includes at the Cross County Mall in Yonkers, where the Gindis’ Century 21 store is in arrears on nearly $2 million in rent, the suit says. At 1991 Broadway, also known as the Bel Canto Condominium, the partners were sued by the building’s board to foreclose on more than $55,000 in liens. Without the cash infusion, the viability and survival of the properties is uncertain, the complaint says. The Gindis’ holdout is just a ploy to get Ashkenazy to buy them out at a premium, the lawsuit says. To add fuel to the fire, Raymond, Eddie and Isaac Gindi allegedly have been telling their sons-in-law and other key real estate players, including Joseph Cayre of Midtown Equities, that Ashkenazy stole millions from them, the suit says. The developer denies the thefts.

Redefining what you should

UNSPLASH/SEBASTIAN PICHLER

BY NATALIE SACHMECHI

‘Personal benefit’ For years, the suit claims, the Gindis have been playing games with their business partners at Century 21, where Ashkenazy and his

expect from firm are creditors. “While holding themselves out to the public as successful, wealthy businesspeople, it appears that the Gindis have improperly diverted Century 21 assets for the purpose of investing for their personal benefit,” says the suit, which also says the Gindis were trying to hide assets from creditors during bankruptcy proceedings. The alleged misconduct will be investigated during the proceedings, Ashkenazy’s attorneys warned in the complaint. Raymond Gindi declined to comment. A representative for ASG Equities did not respond to a request for comment. Representatives for A&H Acquisitions and Midtown Equities did not respond to requests for comment. ■

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NOVEMBER 23, 2020 | CRAIN’S NEW YORK BUSINESS | 7

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

EDITORIAL

publisher/executive editor

MTA’s doomsday messaging could have unintended consequences authority would be putting together a budget without federal support, doomsayers came alive. “This would be an absolute end to the New York way of life,” MTA board member Andrew Albert told the Daily News. And he would be right, if that were all there were to the story. But it’s not. The situation is desperate. The close quarters and congested environment of the buses and trains are things experts have told us to forgo in order not to catch Covid-19. So it’s appropriate that people have avoided the transit system like the plague. Ridership has plummeted 90%, and revenue has followed. The crisis is real, but the MTA’s budget declarations might not be. If the MTA sticks to its doomsday scenario, it could hurt the city’s chance of recovery by scaring companies, workers and tourists away from the city. The austerity budget put forth last week likely will not be the one the authority winds up with, because there are at least two bright spots on the horizon. President-elect Joe Biden has a history of backing public transportation funding. So there’s a better than even chance the MTA will get

THE MTA IS STARING INTO THE ABYSS OF A $16.4 BILLION BUDGET HOLE abyss of a $16.4 billion budget hole by 2024. More than 9,000 transit workers could lose their job, and 40% of the subway system could be shut down. A third of the buses would be eliminated, and commuter rail trains would be slashed by half. Following news that the

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hether you use the subway system or not, there’s no disputing that it’s an essential part of New York. It moves Rhodes scholars, Nobel laureates and the rest of us through the city. Anyone caught in crosstown gridlock or BQE traffic would agree that it’s really the only good way to get around town. So when we heard dire warnings from the Metropolitan Transportation Authority that the pandemic and Washington antipathy toward the Big Apple have pushed the system to the brink of extinction, we took notice. The MTA is staring into the

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support from the federal government. The second is the vaccine picture. At least three pharmaceutical companies have developed promising options to curb the spread of Covid-19 and offer at least temporary immunity. Once that happens, the buses and trains will be safer to ride again. Although it is understandable that Chairman Pat Foye and other MTA leaders are ringing the alarm, their scary message affects the city’s future. It’s clear that the MTA has suggested a worst-case scenario, but businesses large and small charting out their five-year

plan will take those warnings into account. The calculation of whether to come to the city—or grow a business here—might depend on the transit system’s viability. It was responsible for the MTA to sound a warning, but its message needs to be put in context. The agency should not be scaring commerce away from the city. The economy rides on the underground system. Both Washington and the MTA’s leaders have to ensure that the budget does not end up derailing a recovery. ■

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OP-ED

Federal Buildings Fund allocation will stimulate economic activity BY NICK DHIMITRI

s economic recovery efforts continue nationwide, Americans of all backgrounds are looking to Congress to deliver job opportunities. One of the tools at Congress’s disposal is the Federal Buildings Fund. Although many Americans might not have heard of the fund, it can have a major impact on our country’s economic recovery. Harnessing the power of the fund can help our nation do three important things right now: create good construction jobs, repair aging federal buildings and infrastructure, and spark much-needed regional economic activity with new spending on local vendors and services. To see why that’s the case, we can just look at what the program has done since it was established in 1972. The fund supports the work of the Public Buildings Service, which owns and operates federal

government buildings—including more than 370 million square feet of workspace for 1.1 million federal employees—all across the nation. Whenever the government agencies occupying the buildings pay their rent, that money goes to the fund, which can then use it to renovate and repair the buildings as needed, pending congressional approval. And there is certainly no shortage of federal buildings—many of them historic—that are in dire need of repair. The Metcalfe Federal Building in Chicago, the U.S. Custom House in Philadelphia, the Minton-Capehart Federal Building in Indianapolis and the Stewart U.S. Courthouse in Cleveland are just a few of the properties that have been designated to receive renovations whenever funds are made available. But the thing to remember about the fund is that, in order for it to truly serve its purpose, its money must be fully allocated by Congress. In

8 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 23, 2020

years past, that hasn’t always been the case, as lawmakers have sometimes used the money for other purposes in the federal budget.

Priority funding This year fully allocating Federal Buildings Fund money must be a priority. The rationale is simple: Now is not the time to leave investments that could create jobs and improve our federal building stock sitting on the sidelines. One relatively recent example is the ongoing consolidation of the Department of Homeland Security headquarters at the St. Elizabeths campus in Washington, D.C., which has already generated nearly 11,000 jobs and new contracting opportunities for dozens of small businesses. The good news is that the House appropriations committee recently released a draft fiscal year 2021 financial services and general government funding bill that would allocate $9.1 billion in Federal Buildings Fund money for the

coming year. About $6.5 billion of that is specifically focused on construction, modernization, repairs and alterations of federal buildings. The dollars can allow long-needed federal courthouse projects to move forward as well as allow for critical upgrades to land ports of entry and upgrades in efficiency to existing buildings. The House appropriations bill is an encouraging step. Now lawmakers in both houses of Congress should continue that momentum by supporting a strong fund allocation in the 2021 budget and ensuring this crucial program can deliver more jobs and economic activity as our nationwide road to recovery continues. ■ Nick Dhimitri is vice president of external affairs at Suffolk, a national construction company that provides management services, real estate development funding, technology research and development and startup funding.

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OP-ED

BY ANDREW ALBERT AND LISA DAGLIAN

he good news is, a transit rider who values the infrastructure won the presidential election. The bad news is, subway, bus and rail users—and the economy—can’t wait until Inauguration Day for relief (see “MTA’s fiscal nightmare could infect the region’s economy,” CrainsNewYork.com). The Metropolitan Transportation Authority has warned for months that without federal help, it will be forced to cut service, raise fares, lay off thousands and delay system improvements and modernization projects. That’s bad for riders and

There are immediate steps Congress can take now to stabilize the nation’s transit systems and the economy. Extending the MLF through 2022 would allow the MTA to borrow more slowly for immediate needs with lower interest rates, longer terms and an increased borrowing cap. Increasing the debt is far from ideal, but it can help bridge the gap while the MTA waits for emergency aid. A bipartisan agreement on a stimulus package that includes funding for transit and provides aid to cities and states cannot wait until Jan. 20. Staving off fiscal disaster for the MTA and its sister transit agencies will support the economy and riders, even as the pandemic stays its brutal course. If Congress can’t do it, the new president should make it happen on his first day in office—the same day he removes the harmful “anarchist jurisdiction” label from the city.

COLLECTIVELY, WE WILL NEED TO RECONSIDER HOW TRANSIT IS FUNDED our region’s recovery. The agency could stave off the worst cuts through early 2021 with another loan from the Municipal Liquidity Facility. But it’s a long way from the $2.9 billion to $12 billion the MTA needs to take it to the end of 2021, and any borrowing will need to be paid back in three years.

Congestion pricing Moving congestion pricing also must be a priority. The funds will support the MTA’s capital program and improve service, increase accessibility and reduce delays while

BLOOMBERG

Straphangers need Washington’s help

adding jobs. Ideally, we would like to see a January executive order for a categorical exclusion. This makes the most sense, given congestion pricing’s ability to reduce traffic congestion and promote transit use while addressing the MTA’s financial challenges and promoting economic activity. A definitive call for an environmental assessment also would pave the way for the project’s next steps. The bottom line is, the MTA is ready to go. Collectively, we will need to reconsider how transit is funded,

both in routine times—when the MTA region gets taken for a ride with 40% of the nation’s ridership but only 16% of federal funding— and in times of adversity that don’t fit the traditional mold. Is the answer expanding the definition of “disaster” and establishing a grant process with a dedicated funding stream—similar to that for events such as Superstorm Sandy? Or redefining what it means to “build back better” by considering jobs per dollar spent or carbon reduced per dollar spent?

It’s critical that we have these conversations because it’s not a question of if we’ll face a similar crisis but when, and the federal government must be better prepared to step in and help. Our region depends on it. ■ Lisa Daglian is the executive director of the Permanent Citizens Advisory Committee to the Metropolitan Transportation Authority. Andrew Albert is an MTA board member and chair at the PCAC.

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Political savants handicap the city-wide elections New York’s next mayor will face a fiscal crisis not seen in 40 years. More than half the city council will turn over due to term limits. A growing progressive political movement has thwarted large projects like the Amazon HQ2 and Industry City’s redevelopment. Join Crain’s New York Business Forum webcast on Dec. 16 when political pundits George Arzt, Monica Klein and Yvette Buckner will discuss how the city’s elections will shape up and the impact on city businesses.

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NEW APPROACHES TO PRIVATE EQUITY

n 2020, private equity firms and their portfolio companies experienced the same pandemicfueled economic shocks as every other business. But because of specific eligibility criteria, many PE firms did not qualify for forgivable loans from the Paycheck Protection Program instituted by the CARES Act. Now PE firms are looking for growth opportunities in a low-asset-value environment. They’re also taking on an expanded role in shepherding their portfolio companies through an uncertain economic future that may include future lockdowns in response to a resurgence of COVID-19 infections. To learn how the pandemic and its aftermath has changed private equity firms’ approach to mergers and acquisitions, due diligence and other decisions as well as how they’re preparing for a “new normal,” Crain’s Content Studio turned to three experts in the private equity field:

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Managing director True Partners Consulting 646.356.7229 Matthew.McNally@TPCtax.com

ELENA NEWMAN

Partner in financial services EisnerAmper 212.891.6883 Elena.Newman@EisnerAmper.com

ANTHONY TOMARO

Partner and consulting services leader Grassi Advisors & Accountants 212.223.6017 ATomaro@grassicpas.com

• Elena Newman, partner in financial services at EisnerAmper • Matthew John McNally, managing director of True Partners Consulting • Anthony Tomaro, partner and consulting services leader at Grassi Advisors & Accountants. Following, they share insights into the opportunities and challenges shaping firms’ decision-making processes. Crain’s: How has the pandemic changed private equity firms’ and their portfolio companies’ approach to deal making, risk assessment and other strategies? Elena Newman: The effects of the pandemic have driven private equity firms to place greater focus on a company’s technological capabilities and its ability to rise above another disruption. Restrictions have led the shift to a virtual platform for due diligence, fundraising and other key deal-making processes, and this method appears to have the potential of paving the way for a new reality. Although the pandemic has led to deal slowdowns in some sectors, firms can find success in their abilities to quickly adapt to the new environment and identify opportunities to create value for their investors. The changing landscape is expected to lead to interest in mergers and acquisitions, distressed transactions and creatively structured exit vehicles that may not have been

comes the risk of missing some opportunities for cash deployment. Crain’s: What are portfolio companies expecting from private equity firms in terms of assistance during the pandemic? How can PE firms help portfolio companies with cost containment?

Tomaro: Since the pandemic hit in early 2020, many PE firms have stepped up to support their portfolio companies in several ways. Portfolio companies, especially smaller ones, seem to appreciate the private equity firms’ management input and industry connections as much as the capital they provide. PE firms can help their portfolio companies with managing inventory and cash

flows through agile executions — with technology playing a large role. They can pass on best practices for building digital capabilities, rightsizing and reviewing operating models and support functions. Newman: During volatile times, portfolio companies need the support of their private equity firms. Firms can provide guidance by

as attractive before the pandemic. Firms will look for exit strategies that will attempt to mitigate the uncertainty of the current environment. Matthew John McNally: The private equity industry has been significantly altered by the pandemic and is just now starting to see signs of recovery. With uncertainty now the new normal, deal strategy and risk assessment has been momentarily altered and heavily concentrated in the distressed, opportunistic and strategic-alliance areas. Anthony Tomaro: As private equity firms deploy their cash in the second half of 2020, they are taking a much closer look at the prospects of target businesses and portfolio companies. The pandemic has created a unique situation: corporate problems and considerations that go far beyond liquidity stress. Amid another potential COVID-19 wave and altered consumer spending, some PE firms are adopting a wait-and-see approach for new investments, but with this approach

“PE FIRMS NEED TO BUILD A SYSTEMATIC APPROACH TO VALUE CREATION.” —MATTHEW JOHN MCNALLY

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11/19/20 1:10 PM

NEW APPROACHES TO PRIVATE EQUITY “A SPAC IS AN INVESTMENT IN THE MANAGEMENT TEAM, THEIR DECISION MAKING AND THEIR ABILITY TO EXECUTE ON IDEAS. YOU ARE BETTING ON THE JOCKEY INSTEAD OF THE HORSE, SO TO SPEAK.” — ANTHONY TOMARO

refocusing on ways to create value for their existing portfolio companies by assisting them with adopting new strategies to preserve capital and reduce costs. Although this has always been a focus, the challenge now is the demand for quicker, decisive action plans to address these changes. More frequent forecasting, planning for support during continued disruption, outsourcing functions to allow for the seamless adoption of a remote environment and guidance about where companies can best deploy their capital to provide for that necessary support will be of great value to the economics of the portfolio company. McNally: Since the pandemic, many private equity firms have been compelled and in most cases obligated to increase support for their portfolio companies. PE firms should seize this opportunity to build more robust relationships. As portfolio companies look to the PE firms for guidance, the

firm has a platform to showcase their industry expertise and build rapport. PE firms that can develop strong relationships with their portfolio companies are better positioned to build growth and have a smoother transition upon exit. Cost containment can be achieved in a multitude of different ways depending on how the private equity firms are structured and how the legal agreements are written. Here a few examples: A typical PE firm should look to reduce expenses by consolidating any redundant administrative and back-office work throughout its portfolio of funds. Build a portfolio committee that brings together the heads of each of the portfolio companies to share experiences and find solutions to problems as a team. Speak to your professional-service providers and see if they are willing to negotiate on fees. Engage a cost-reduction service provider to work with the

portfolio companies to reduce indirect procurement costs and increase productivity. Crain’s: How has the CARES Act affected the private equity industry? McNally: The CARES Act provided financial relief to support businesses during the COVID-19 pandemic. The Act permitted a majority of private-equity-owned portfolio companies to participate and provided critically needed liquidity to stem the downturn. The liquidity provisions of the CARES Act gave portfolio companies the ability to borrow funds through the expanded Small Business Administration loan program with deferred payroll tax liability and credits against particular employee taxes. Tomaro: The CARES Act helped most businesses in the U.S. by providing funds to keep employees employed and to pay other crucial expenses such as utilities and rent. But it did have major limitations that affected the eligibility of private equity firms and their portfolio companies. Generally, the eligibility requirement for a Paycheck Protection Program (PPP) loan was 500 or fewer employees, unless the company’s NAICS code threshold, annual receipts or net income otherwise deemed it a small business. This ruled out many portfolio companies. It appeared that many private equity firms would be

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left out of PPP relief based on the SBA affiliation rules. One of the simplest ways that SBA defines control (and hence, affiliation) is whether an individual or another business owns more than 50% of the voting equity of another business. Control can also arise through contractual or other economic dependence. The bottom line is that PE firms — even though they met the employee threshold — still had to jump through hoops and prepare an analysis of their portfolio companies to demonstrate eligibility for relief under the CARES Act. On the bright side, the CARES Act allowed portfolio companies that incurred net operating losses in 2018, 2019 and 2020 to recover federal income taxes paid in 2013, 2014, 2015, 2016 and 2017. This is a great federal income tax strategy and cash-flow generator. A company can carry back a net operating loss incurred in a year in which the federal income tax rate was 21% to a year when the maximum corporate income tax rate was 38%. Crain’s: What kind of due diligence is required as PE firms use a low-asset-value environment to grow their portfolios? Newman: Firms need to maintain more frequent communication with their portfolio companies as well as provide valuable insight on cost efficiencies and business sustainability plans. Volatile times can lead to the exploration of diversification in their portfolios and strategic alternatives to boost value creation, while paying careful attention to maintaining the right balance. Private equity firms are well-positioned to take advantage of a downturn in the market through their expertise in deal structuring and are equipped with the appropriate skill set to maximize value in an underperforming environment. McNally: Private equity firms should integrate due diligence procedures and reviews from the date of purchase until the date of exit. This will give the PE firm a true macro and micro view of the company’s competitive realities, as well as its regulatory and legal reporting requirements, taxation and management bandwidth. True insight can be achieved through unified due diligence procedures and periodic testing. Tomaro: Due diligence is due diligence. It is not necessarily specific to asset value. Due diligence activities certainly need to be adjusted based on the risk level of the target. The most important thing to consider in the current environment is what type of industry the firm wants to invest in based on the market needs resulting from the pandemic. Crain’s: How can PE firms sell assets at an optimal price in a distressed economy?

P011_013_CNY_20201123.indd 12

Tomaro: I believe that the challenge here is for private equity firms to find the right buyer. When I say the right buyer, I mean a strategic buyer and not necessarily another financial buyer. The key here is to identify where your asset can be a solution to a problem or, better yet, the missing piece of another business’s puzzle. This takes good industry-research skills, which most private equity groups have. The hardest part is to monetize the piece of the puzzle to the new venture. Newman: A key fallout of the current crisis is a change in the traditional buyer pool. Firms will need to engage in the selling process with flexibility and be open to creative strategies that might include joint ventures or credit alternatives. Private equity firms will benefit from the appropriate accounting, tax and legal expertise to guide them on structuring the deal in the most effective manner while mitigating risk. Firms that can illustrate a clear prospective plan, explain their cash situation and show how performance and cash will be impacted by their plan will gain investor confidence. Firms may want to decrease or establish caps on their post-closing obligations and consider engaging outside valuation experts to ensure they maximize value. Their ability to provide the purchaser with quick and satisfactory responses could make the difference in optimizing a deal. McNally: The COVID-19 pandemic has had a devastating impact on the economy and an increasing number of companies are under extreme pressure. A healthy and well-capitalized portfolio company before COVID-19, today could be a company on the brink of bankruptcy. The private equity firm must devote itself to building up its weaker portfolio companies’ balance sheets and operations, accelerate transformation and most importantly create value. PE firms need to build a systematic approach to value creation, for the time being placing less emphasis on operational performance. Healthier portfolio companies can focus on reinforcement of their positions and growth. Crain’s: What should investors know about the increasing popularity of SPACs in the PE space? McNally: Special purpose acquisition companies (SPACs) are essentially blank-check funds that are designed exclusively for the purpose of acquiring and/or merging companies. It was estimated by the year 2025 that SPAC IPOs’ value will be approximately $80 billion in the United States, with 2020 on track to be another record-breaking year. However, SPACs come with a tremendous amount of uncertainty. On Sept. 21, 2020, the Securities and Exchange Commission issued new guidance requiring SPACs to satisfy the eligibility requirements for registering securities on Form S-3, the short-form

11/19/20 1:10 PM

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SPONSORED CONTENT registration statements. This of course comes with additional administrative requirements and increased cost. Newman: There are several areas of the industry that have gained traction as a result of COVID-19. One example is the growing interest in SPACs, also known as “blank-check companies.” The increase in popularity is curious as the concept of a SPAC is not a new one. Some feel the restrictions and uncertainty of the pandemic have made them attractive because they typically allow for seller flexibility, more certain pricing and an easier journey into the public markets, which are particularly attractive in a volatile market. They allow for a lower upfront investment with a significant potential upside and structuring economics for increased liquidity after an IPO. However, SPACs do come with risks and rewards that an investor should evaluate to determine if this vehicle is right for them. Tomaro: As many traditional investment opportunities tighten up or become less valuable in this distressed economy, investors are looking for creative and effective new strategies to pursue. This has caused a spike in interest in SPACs, which are shell corporations designed to take companies public without an IPO. Investors should understand the unique set of risks involved in this investment vehicle. Unlike most investments in tangible assets or specific companies, a SPAC is an investment in the management team, their decision making and their ability to execute on ideas. You are betting on the jockey instead of the horse, so to speak. Investors will want to be strategic about the industries in which they invest in SPACs. The cannabis industry, for example, is ripe for acquisitions. Crain’s: How should PE firms approach tax planning in 2020? Tomaro: Prior to the presidential election, there was speculation that a change in administration would drastically affect tax-deferral strategies and tax planning for partnerships and C corporations under then-candidate Joe Biden’s proposed tax plan. Those changes do not appear to be as imminent if Republicans maintain control of the Senate, but it reminds us just how valuable the benefits of the Tax Cuts and Jobs Act are, especially to flow-through entities. Private equity firms should also be discussing the proposed carried-interest regulations that are set to affect partnerships and funds as early as 2021. Crain’s: What can firms do now to prepare for future surges of COVID-19? Newman: The rapid impact of COVID-19 and its effects have proven the need to prepare for the unthinkable. This virus has reshaped the mindset and functional

P011_013_CNY_20201123.indd 13

landscape across multiple sectors of the industry, and planning and preparation are key to surviving the next disruption. The need for enhancing technological capabilities and defenses against cybersecurity has increased significantly. Firms must continue to assess their business continuity plans and implement plans for phased cost reductions, identification of solutions and plans for supporting the workfrom-home workforce. Aside from the operational aspect, firms should also reassess the forward-looking valuation metrics for their portfolio companies. Firms that can withstand the effects of COVID-19 will most likely have a competitive advantage with future investors, as this will contribute to an increased level of investor security.

difficult. One would have to look at the specific sectors the private equity firms are investing in. For example, the life science and healthcare market, specifically information technology, will have positive and robust M&A and equity-financing activity. Perhaps the best example of this trend is medical practices’ rapid adoption of telemedicine.

McNally: Firms should make technology an integral part of the business and a world-class data capability should be developed. They should make sure employees are equipped with all the necessary tools and equipment to be able to work both efficiently and effectively remotely. They should implement additional cybersecurity, as remote workers are more susceptible to hackers and phishing attacks. They should make communication simple, build and save cash reserves and cut extraneous expenses. Firms should apply for available relief funds and try to develop new revenue streams.

Meeting new demands in a costeffective manner as a result of changes in consumer behavior will be one of the main focus areas for portfolio companies. Although business segments like technology and innovation have been an industry focus prior to the pandemic, as the population continues to adapt, their changing lifestyles will likely result in attractive M&A opportunities for these markets, as well as in health care/life sciences and e-commerce, to name a few. However, one thing is clear from this and past experience: The industry has thrived through significant transformation. And many believe these events have better positioned it to sustain future disruption.

Tomaro: In the present, firms should make sure their portfolio companies are not relenting in stringent screening, hygiene and environmental safeguards. To prepare for the long-term future, businesses should look into enhanced environmental controls, such as upgraded air filtration systems, to invest in more permanent workplace safety measures. Even as businesses bring their workforces back to the office, sick leave and work-life-balance policies need to remain flexible. Virtual meetings are the reality for the foreseeable future, and firms should continue to find new ways to effectively engage with clients, employees and new business prospects. Crain’s: What can we expect of private-equity performance over the next two years? Tomaro: From what we have seen in the market, commencing with June of this year, private equity firms are definitely back in the market seeking opportunities to buy assets. The biggest challenge that private equity firms face right now is sector expertise. The pandemic is reshaping industries and, unless you have a deep knowledge in the sector, getting to the right answer can be difficult. Determining equity performance over the next two years will be

Newman: Private equity professionals predict that the industry will thrive and the road to recovery will continue to lead to opportunities and creativity in deal structuring and vehicle popularity. However, as the recovery continues, industries will experience change and be challenged with hardships that they will need to navigate; business strategies will need to evolve.

“THE CHANGING LANDSCAPE IS EXPECTED TO LEAD TO INTEREST IN MERGERS AND ACQUISITIONS, DISTRESSED TRANSACTIONS AND CREATIVELY STRUCTURED EXIT VEHICLES.” —ELENA NEWMAN

Crain’s: What do new consumer habits mean for the future of private equity? McNally: COVID-19 has shifted consumer spending towards health and wellness and is reinforcing the trend toward healthier foods and lifestyle. Consumers are reluctant to spend on luxury goods and have increased savings given the uncertainty of future lockdowns. Some private equity firms will see this as an opportunity to identify a role for M&A in their portfolio companies, undertaking acquisitions in the consumer goods market to pursue inorganic growth or divestitures to fuel growth elsewhere. Newman: Changes in consumer behavior as a result of the pandemic have forced certain business sectors to quickly shift their delivery-ofservice strategies. New habits are most likely going to lead to ways of life that will remain with us after the pandemic. These changes will impact the operations of private equity portfolio companies, as well as which

types of businesses will be attractive to investors. The concepts of working from home, contactless shopping for groceries and services, and virtual healthcare have the strong potential to become part of the new normal. This will lead to an increased attraction to business sectors such as technology and innovation, telehealth, gaming, well-being and e-commerce. These changes have forced portfolio companies to revisit growth and success strategies along with the means of satisfying new client demands. Tomaro: I believe that consumer habits, more than ever, mean everything to private equity groups. Every individual is determining what his or her “new normal” is. As a result of the pandemic, most individuals have altered their spending habits. Most individuals are shifting their spending to essentials while cutting back on most discretionary categories. Private equity firms need to assess and study consumer demands going forward before making investments.

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CN019958.indd 1

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CRAIN’S

2020

HE PANDEMIC HAS TURNED THE ECONOMY UPSIDE DOWN, but investors aren’t sitting on the sidelines. The Dow Jones Industrial Average rebounded from its March swoon, and money is still flowing to local companies. In the second and third quarters of 2020, $8.6 billion was invested in metro-area firms, according to PwC and CB Insights. Although the figure is 8.7% less than last year’s total during the same period, it shows that backers still are finding promising companies to invest in. The firms that rank on the latest version of Crain’s annual Fast 50 list serve as evidence. This year’s top finishers, representing a host of industries, are ranked by percentage change in revenue between 2016 and 2019. The list’s largest increase belongs to Lemonade, whose revenue jumped by an astonishing 468,628% over three years. It’s no wonder the insurance tech company took its ownership public in July. Yet Lemonade isn’t alone in experiencing major growth: The median revenue increase for the 50 honorees was a robust 581%. Data for the Fast 50 were gathered from a variety of sources. Many private firms responded to a Crain’s survey and shared financial documentation to support their revenue figures. Qualifying public companies were identified through Form 10-K reports, with S&P Global Market Intelligence assisting in the effort to screen candidates. Finally, a few firms earned spots based on Crain’s estimates. To be considered for the Fast 50, firms had to have an inception date in 2016 or earlier. They also had to generate at least $10 million in 2019 revenue and be headquartered in the New York metropolitan area, which includes the five boroughs, Nassau, Suffolk and Westchester counties; and New Jersey’s Bergen, Essex, Hudson and Union counties. Turn the page to learn more about the area’s 50 fastest-growing companies. — Gerald Schifman

Photographs by Buck Ennis November 23, 2020 | CRAIN’S NEW YORK BUSINESS | 15

SWEET TASTE OF SUCCESS

Insurance company Lemonade tops Crain’s 2020 list of the fastest-growing local firms

BY AARON ELSTEIN

A RECENT Lemonade ad campaign

& Jerry’s and Patagonia—which emphasizes its commitment to social and environmental responsibility. The company contributes excess revenue, more than $1 million this year, to customer-selected charities, including the American Civil Liberties Union and the Trevor Project. Its headquarters are on Crosby Street in SoHo, not in a Midtown office tower.

“WE USE PLAIN ENGLISH, SHORT SENTENCES AND AVOID LEGALESE” mer president of Powermat Technologies Ltd., and Shai Wininger, founder of Fiverr Ltd. Lemonade is a B Corp—like Ben

COURTESY OF LEMONADE

n these polarized times, here’s one thing everyone can agree on: Insurance isn’t anyone’s idea of fun. “There’s an inherent conflict in this business: People give an insurer money, and they want it back,” said Tim Bixby, chief financial officer of Lemonade, a firm whose goal is to become “the world’s most loved insurance company.” Snicker if you want, but Lemonade is clearly onto something. It is the fastest-growing company in the city, leading the 2020 Crain’s Fast 50 list with revenue that reached $67 million last year. The property and casualty company’s formula is straight out of Silicon Valley: cutting-edge technology and clever marketing combined with a purpose-driven mission that makes customers feel good about spending their money. Lemonade was co-founded in 2015 by Daniel Schreiber, the for-

“We’d like to be the insurance company people would like to hang out with,” Bixby said. And a lot of people seem to like hanging out at Lemonade’s stand. The 5-year-old company has attracted nearly 1 million customers, most of whom are under 35. They’re drawn to the platform’s smooth interface and the firm’s promise to approve policies in minutes and pay claims in seconds. The company recently started selling pet insurance and in July

Now that Lemonade has won its customers’ love, the question is how to keep it from fading away. This is important because the Controversy and criticism firm’s strategy rests on one day Lemonade is definitely different turning buyers of renters insurance from other insurers. But is it a via- into homeowners or life insurance ble business? The company has lost policyholders. In the financial $88 million so far this year on $65 world, this is called cross-selling, million in revenue, and Wall Street and it’s a Holy Grail as elusive as the mythical chalice bereckons the company cause most policyholdwon’t become profitable ers don’t feel loyal to inuntil 2026 at the earliest. surers apart from paying As a business, Lemonthem regular premiums. ade is so immature that Credit Suisse asked Goldman Sachs, its lead customers if they would IPO underwriter, said stick with Lemonade afpeople who bet on it are ter their policy ends, and engaging in “essentially 48% said it was a tossup, venture investing.” somewhat unlikely or It’s fair to say Lemonextremely unlikely, acade is controversial cording to a report last within the insurance inSCHREIBER month. Only 36% of Produstry, which has been gressive customers felt dominated for decades the same way. by giants employing “The younger age dereams of lawyers bemographic—where cause surveys show 75% Lemonade’s marketing of customers think it’s resonates most strongOK to overstate a claim. ly—has exhibited higher To critics, Lemonade relative turnover ratios,” is little more than an unwrote Credit Suisse anaprofitable marketing lyst Michael Zaremski. machine whose charity “Lemonade therefore program amounts to needs to continue sellnothing more than ing additional and/or green-washing. One inWININGER more expensive proddustry publication deucts.” scribed the company as Bixby said the company’s intera “hype factory.” Lemonade “is a success for ven- nal data don’t match Credit Suisse’s ture capitalism and entrepreneur- findings. He added that it’s great for ship but less obviously for insur- a newcomer to be compared to Proance or insurance customers,” gressive. In the meantime, Lemonade will Chris Sandilands, partner at insurance consulting firm Oxbow Part- soon start selling term life insurance. Auto policies could be next. ners, wrote this past summer. Bixby figures the company must The insurance industry is huge, so be doing something right if critics there’s a lot of room for it to grow. And because Lemonade sells diare so impassioned. “We’ve done our best to take rectly to the consumers who find it complexity and obscurity out of the online, it doesn’t need to employ a process of buying insurance,” he large and costly sales force to push said. “We use plain English, short products. Its $575 million in cash should be sentences and avoid legalese. But when it comes to regulation and enough to see it through to profitrunning a business, we are com- ability, Bixby said. “We’re in a great spot,” he said. ■ pletely serious.” PHOTOS, BEN KELMER

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16 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 23, 2020

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Santander Bank, N.A. is a Member FDIC. ÂŠ2020 Santander Bank, N.A. All rights reserved. Santander, Santander Bank and the Flame Logo are trademarks of Banco Santander, S.A. or its subsidiaries in the United States or other countries. All other trademarks are the property of their respective owners. 501001_CNY 12/01/2020

CN019958.indd 1

11/16/20 7:00 PM

$200M

NOOM

AMOUNT OF FUNDING Better.com raised in a Series D round earlier this month

YIELDSTREET Founder and CEO Milind Mehere

383

% NOOM

INCREASE IN Peloton’s stock price in the eight months that followed March 11, when the pandemic was just starting SOURCE: Crain’s research

1 2 3 4 5 6 7 8 9 10

COMPANY DESCRIPTION

LOCATION

REVENUE GROWTH RATE

2016 REVENUE

2019 REVENUE

PROFITABLE?

2019 FULL-TIME EMPLOYEES

LEMONADE INSURANCE Insurance platform for homeowner’s, renter’s and pet coverage

5 Crosby St., New York, NY 10013

468,628.2%

$14,358

$67.3 million

279

68 S. Service Road, Melville, NY 11747

16,395.6%

$464,211

$76.6 million

Yes

254

TOORAK CAPITAL PARTNERS Lending platform that funds residential, multifamily and mixed-use loans throughout the U.S. and U.K.

15 Main St., Summit, NJ 07901

16,091.0%

$713,076

$115.5 million

Yes

OLB GROUP Provider of an end-to-end e-commerce solution that includes site creation, transaction processing, order fulfillment and customer service

200 Park Ave., New York, NY 10166

12,295.5%

$83,026

$10.3 million

YIELDSTREET Digital marketplace for alternative investments across asset classes such as art, commercial, legal and real estate

300 Park Ave., New York, NY 10022

6,045.2%

$1 million

$61.6 million

NOOM App-based lifestyle platform that helps users follow healthier habits, reduce their risk of chronic health problems and reverse disease

229 W. 28th St., New York, NY 10001

5,419.9%

$3.6 million

$200.8 million

Not disclosed

CONSTELLATION AGENCY Technology platform that helps brands automate and visualize their marketing campaigns

110 William St., New York, NY 10038

4,814.0%

$379,092

$18.6 million

Yes

BETTER.COM Digital mortgage platform that accelerates the loan-approval process and helps prospective homeowners save money

3 World Trade Center, New York, NY 10007

1,257.0%

$8.3 million

$112.1 million

Yes

1,200

SPLENDID SPOON Wellness brand and subscription service offering ready-to-eat, plant-based meals

134 N. Fourth St., Brooklyn, NY 11249

1,016.1%

$1.6 million

$18.1 million

Yes

PELOTON In-home fitness equipment and media service whose sales have jumped as homebound employees seek workout alternatives

125 W. 25 St., New York, NY 10001

989.8%

$84 million

$915 million

3,694

NATIONWIDE MORTGAGE BANKERS Mortgage lender licensed across multiple states

18 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 23, 2020

1 1 1 1 1 1 1 1 1 2

GRAND AND CENTRAL

OOM

More than three-quarters of the companies on the list are based in Manhattan.

6% Outer boroughs

10% Rest of New York

PROGYNY CEO David Schlanger with employees’ kids

11 12 13 14 15 16 17 18 19 20

IDEANOMICS 76% Manhattan IDEANOMICS

NOOM

8% New Jersey

SOURCE: Crain’s research

COMPANY DESCRIPTION

LOCATION

COMPASS Technology-driven residential real estate brokerage

90 Fifth Ave., New York, NY 10011

2016 REVENUE

2019 REVENUE

965.0%

$187.8 million

$2 billion

Not disclosed

1359 Broadway, New York, NY 10018

939.0%

$22.1 million

$229.7 million

Yes

168

INTERCEPT PHARMACEUTICALS Biopharmaceutical firm developing treatments for chronic liver diseases

10 Hudson Yards, New York, NY 10001

910.0%

$25 million

$252 million

583

POLICYGENIUS Online insurance marketplace that has raised more than $160 million in venture funding, including a $100 million round in January

50 W. 23rd St., New York, NY 10010

900.0%

$6 million*

$60 million*

Not disclosed

BOMBAS Shirt and sock retailer known for donating clothes to the homeless after consumer purchases

881 Broadway, New York, NY 10003

898.2%

$17.2 million

$171.3 million

Yes

121

IDEANOMICS Global company that facilitates the adoption of commercial electric vehicles and supports new financial services and fintech products

1441 Broadway, New York, NY 10018

880.8%

$4.5 million

$44.6 million

NEW FORTRESS ENERGY Provider and operator of natural gas–fueled energy solutions across the globe

111 W. 19th St., New York, NY 10011

784.0%

$21.4 million

$189.1 million

201

FIT SMALL BUSINESS Digital information resource whose sites are visited by more than 1 million small-business owners each month

355 Lexington Ave., New York, NY 10017

748.7%

$1.7 million

$14.5 million

Yes

Not disclosed

BEESWAX Bidder-as-a-service software for the advertising industry

275 Seventh Ave., New York, NY 10001

746.7%

$3.3 million

$27.5 million

WEWORK Infamous shared-workspace provider whose revenue was soaring before Covid-19 hit

115 W. 18th St., New York, NY 10011

702.6%

$436.1 million

$3.5 billion

10,100

PROGYNY Fertility benefits management company that designs solutions to improve conception outcomes, shorten time to pregnancy and reduce fertility-related costs

REVENUE GROWTH RATE

PROFITABLE?

2019 FULL-TIME EMPLOYEES

*Crain’s estimate.

NOVEMBER 23, 2020 | CRAIN’S NEW YORK BUSINESS | 19

144% DENTAL365

21 22 23 24 25 26 27 28 29 30

TEACHABLE

$250M

APPROXIMATE PRICE that Hotmart paid for Teachable in a March acquisition

TEACHABLE

COURTESY OF DENTAL365

INCREASE IN Datadog’s stock price in the eight months that followed March 11

SOURCE: TechCrunch

COMPANY DESCRIPTION

LOCATION

DENTAL365 Full-service dental practice with locations throughout the metro area

3333 New Hyde Park Road, New Hyde Park, NY 11042

DATADOG Cloud-monitoring service that allows companies to track performance across systems, apps and services

SWEET LOREN’S Cookie-dough manufacturer and retailer whose products are sold online and in grocery stores

2016 REVENUE

2019 REVENUE

686.8%

$9 million

620 Eighth Ave., New York, NY 10018

655.8%

595 Madison Ave., New York, NY 10022

TRIPLELIFT 400 Lafayette St., Technology company that delivers ads and branded content for a roster of firms, includ- New York, NY 10003 ing AT&T, Capital One and Toyota

REVENUE GROWTH RATE

PROFITABLE?

2019 FULL-TIME EMPLOYEES

$70.5 million

Yes

600

$48 million

$362.8 million

1,403

614.3%

$1.4 million

$10.1 million

Yes

597.9%

$43 million

$300 million

Yes

Not disclosed

TEACHABLE Educational technology service that enables individuals and businesses to create, host and sell online courses

470 Park Ave. South, New York, NY 10016

583.1%

$3.3 million

$22.3 million

119

BRAZE Customer-engagement platform for creating personalized campaigns across email and apps

330 W. 34th St., New York, NY 10001

579.3%

$14.7 million

$100 million

Not disclosed

GEISTM Marketing technology to optimize and drive profitable customer acquisition

729 Seventh Ave., New York, NY 10019

574.6%

$12.9 million

$86.7 million

Yes

INSTICATOR Offers engagement and moderatedcommenting products utilized by more than 350 million online users monthly

2 Park Ave., New York, NY 10016

509.2%

$2 million

$12.3 million

Yes

SINO-GLOBAL SHIPPING AMERICA Global logistics and shipping services company whose primary market is China

1044 Northern Blvd., Roslyn, NY 11576

471.4%

$7.3 million

$41.8 million

SEATGEEK Mobile-focused ticketing platform that allows fans to buy and sell tickets to live events

902 Broadway, New York, NY 10010

418.5%

$27 million*

$140 million*

Not disclosed

467

*Crain’s estimate

20 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 23, 2020

FOR I

3 3 3

ME S

31 32 33

Only half of the companies on the list acknowledged being profitable, with the rest either losing money or keeping their performance a secret. 10% Not disclosed 50% Yes 40% No SOURCE: Crain’s research

COMPANY DESCRIPTION

FORTRESS TRANSPORTATION AND INFRASTRUCTURE INVESTORS Proprietor of transportation infrastructure and equipment in the aviation, energy, intermodal and rail sectors

LOCATION

SOME SPIDER

COURTESY OF SOME SPIDER

FORTRESS TRANSPORTATION AND INFRASTRUCTURE INVESTORS

TEACHABLE

BLE

GLASS HALF-FULL

REVENUE GROWTH RATE

2016 REVENUE

2019 REVENUE

PROFITABLE?

2019 FULL-TIME EMPLOYEES

1345 Sixth Ave., New York, NY 10105

391.0%

$117.9 million

$578.8 million

Yes

SOME SPIDER Parent-centric media and entertainment company whose brands include Scary Mommy, Fatherly and The Dad

20 W. 22nd St., New York, NY 10010

386.5%

$6.2 million

$30 million

Yes

104

BROOKLINEN Direct-to-consumer brand offering luxury bedding, towels and loungewear

81 Prospect St., Brooklyn, NY 11201

376.2%

$21 million

$100 million*

Yes

Not disclosed

*Crain’s estimate

Bravo! KPMG congratulates Imperial Dade on being named one of Crain’s Fast 50 by Crain’s New York Business. Your diligence, hard work and perseverance has clearly paid off. kpmg.com

© 2020 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. NDP133101

NOVEMBER 23, 2020 | CRAIN’S NEW YORK BUSINESS | 21

1935

CEROS CEO Simon Berg

YEAR OF Imperial Dade’s inception, making it the oldest company on the list

NUMBER OF small practices acquired by Schweiger Dermatology Group throughout the past six years

TELADOC HEALTH CEO Jason Gorevic

34 35 36 37 38 39 40 41 42 43

Pres

SOURCE: Crain’s research

COMPANY DESCRIPTION

LOCATION

REVENUE GROWTH RATE

2016 REVENUE

2019 REVENUE

PROFITABLE?

2019 FULL-TIME EMPLOYEES

WHAT IF MEDIA GROUP Operator of websites that generate targeted advertising impressions and collect user email and phone records

400 Kelby St., Fort Lee, NJ 07024

371.9%

$19.2 million

$90.7 million

Yes

Not disclosed

POWERINBOX Platform for personalized, automated and multichannel messaging solutions for publishers’ audience-engagement efforts

368 Ninth Ave., New York, NY 10001

350.0%

$8.3 million

$37.5 million

Yes

TELADOC HEALTH Telemedicine service allowing users with non-life-threatening maladies to access virtual care anytime

2 Manhattanville Road, Purchase, NY 10577

349.3%

$123.2 million

$553.3 million

2,400

NEPHROS Developer and seller of high-performance water-purification products to the medical device and commercial markets

380 Lackawanna Place, South Orange, NJ 07079

345.4%

$2.3 million

$10.3 million

339.4%

$26.8 million

$118 million

Yes

200

COLUMBIA CARE 680 Fifth Ave., Cultivator, manufacturer and provider of medical and recreational cannabis products New York, NY 10019

329.0%

$18.1 million

$77.5 million

Yes

696

RUBY HAS FULFILLMENT E-commerce fulfillment provider for direct-to-consumer brands and retailers

327.3%

$9.2 million

$39.3 million

Yes

450

312.0%

$47.4 million

$195.4 million

40 W. 25th St., New York, NY 10010

305.8%

$5.5 million

$22.5 million

Not disclosed

255 Route 1 and 9, Jersey City, NJ 07306

277.1%

$460.8 million

$1.7 billion

Yes

3,000

ROKT 175 Varick St., E-commerce personalization software used by companies such as Indeed, Salesforce and New York, NY 10014 Visa

5 Inez Drive, Bay Shore, NY 11706

TICKPICK Secondary ticket marketplace for sporting 225 W. 34th St., events, concerts and other performances that New York, NY 10122 doesn’t charge buyers transaction fees

CEROS Cloud-based content-creation platform empowering marketers and designers to create interactive digital content

IMPERIAL DADE Distributor of food-service supplies and janitorial products serving a range of markets that includes schools, grocery stores and cruise lines

22 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 23, 2020

4 4 4

11,064.1%

Berg

ME S

STOREBOUND

AVERAGE GROWTH RATE among firms on the Fast 50 list

729

MONGODB President and CEO Dev Ittycheria

DASH

AVERAGE NUMBER of employees among firms on the list SOURCE: Crain’s research

44 45 46

COMPANY DESCRIPTION

LOCATION

REVENUE GROWTH RATE

MONGODB 1633 Broadway, Document-oriented database program New York, NY 10019 with a high-profile clientele that includes NBCUniversal, Verizon and the Chicago city government PIRS CAPITAL Provides personalized, tech-enabled funding 40 Exchange Place, to small businesses nationwide via merchant New York, NY 10005 cash advances

STOREBOUND Product and marketing innovation platform 50 Broad St., New York, NY 10004 focused on housewares and home furnishings

2016 REVENUE

2019 REVENUE

PROFITABLE?

2019 FULL-TIME EMPLOYEES

267.3%

$114.8 million

$421.7 million

1,813

245.0%

$5.4 million

$18.7 million

Yes

236.7%

$25.1 million

$84.6 million

Yes

Today we celebrate PwC congratulates all those recognized in Crain’s Fast 50 and celebrates Imperial Dade for the well-earned accomplishment. www.pwc.com

NOVEMBER 23, 2020 | CRAIN’S NEW YORK BUSINESS | 23

MAKESPACE

47 48 49 50

COMPANY DESCRIPTION

LOCATION

MAKESPACE 123 William St., Full-service, on-demand storage company and app that allows customers to order, store New York, NY 10038 and retrieve physical belongings

SCHWEIGER DERMATOLOGY GROUP Medical and cosmetic dermatological service 27-01 Queens Plaza North, provider in clinics throughout the Northeast Long Island City, NY 11101

ZEEL NETWORKS CEO Samer Hamadeh

REVENUE GROWTH RATE

2016 REVENUE

2019 REVENUE

PROFITABLE?

2019 FULL-TIME EMPLOYEES

233.7%

$6.1 million

$20.4 million

223.4%

$40.9 million

$132.2 million

Yes

936

Not disclosed

266

BLUECORE Digital communications technology that personalizes content, offers and product recommendations for retail

228 Park Ave. South, New York, NY 10003

219.0%

$11.1 million

$35.5 million

ZEEL NETWORKS Service that dispatches 11,000 licensed therapists nationwide to provide same-day in-home massages and staffing for spas

45 W. 45th St., New York, NY 10036

200.5%

$12.6 million

$38 million

NOMINATIONS CLOSING SOON! Since 1988, Crain’s New York Business has been celebrating the 40 Under 40—an annual list of the most accomplished New York City-based business professionals under 40 years old.

Do you know an up-and-comer who is younger than 40 and has made a mark on NYC? If chosen, they will be featured in a special section of Crain’s New York Business and honored at an awards ceremony in August.

DEADLINE TO NOMINATE: Dec. 4

Nominate today: CrainsNewYork.com/Nominations 24 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 23, 2020

PEOPLE ON THE MOVE

Advertising Section 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

CONSULTING ENGINEERING

LAW

NONPROFIT

Jacobs

Latham & Watkins LLP

Vital Strategies

Jacobs is pleased to announce that Vanessa Ajdinova has been promoted to Vice President, Director of New York Operations. With an entrepreneurial spirit, she leads a team of innovative thought leaders committed to partnering with clients to solve complex and significant problems in the intricate environment of New York and beyond. With proven success in business consulting services, infrastructure and data center design, Vanessa will continue to lead the office in project delivery excellence.

Kelly Cataldo has been elected a partner at Latham & Watkins in New York, effective January 1. Her practice focuses on project finance transactions for energy and infrastructure projects. She represents lenders, equity investors, and sponsors in connection with all phases of the financing and development of domestic and international projects, with a focus in the renewable energy sector.

Gail S. Neely has been promoted to counsel at Latham & Watkins in New York, effective January 1. She represents financial institutions, emerging companies, and public and soon-to-be public companies in a variety of regulatory and corporate matters. She focuses on regulatory considerations and securities transactions for broker-dealers and investment advisors, FINRA corporate finance analysis, US stock exchange initial and continued listing requirements, and state Blue Sky laws.

Edmond R. Parhami has been promoted to counsel at Latham & Watkins in New York, effective January 1. He has a broad-based M&A practice that encompasses public and private acquisitions, dispositions, carve-outs, auction processes, joint ventures, recapitalizations, controlling and minority investments, and other general corporate matters. He advises clients in sectors including energy, healthcare, retail and consumer products, hospitality, gaming and leisure, media, and manufacturing.

José Luis Castro will serve exclusively as Vital Strategies’ President and CEO, a position he has held since 2016, as he steps down from leading The International Union Against Tuberculosis and Lung Disease. José has led a rapid expansion of Vital Strategies’ portfolio, working with governments to tackle the world’s leading killers, primarily in low- and middle- income countries. The organization now reaches into 73 countries and has touched the lives of more than 2 billion people.

FINANCIAL SERVICES

LAW

MARKETING

PROFESSIONAL SERVICES

KeyBank

Latham & Watkins LLP

Veterinary Practice Partners

IDA Ireland

John J. Manginelli, Northeast Regional Executive for KeyBank Real Estate Capital, will assume an expanded role of Market President for Key’s Hudson Valley/Metro New York market. He will drive coordination of Key’s business and community efforts in the market, as well as continue to lead Key’s real estate capital business in the northeast. Manginelli joined KeyBank in 2001 and has 30 years of commercial real estate and banking experience. He holds MS and BS degrees from Rutgers University.

Matthew S. Salerno has been elected a partner at Latham & Watkins in New York, effective January 1. He focuses on government investigations, securities litigation, and complex commercial litigation. He has a particular depth of experience in financial crime and white collar defense in state and federal regulatory matters, and represents both individual and institutional clients.

Seung-Ju Paik has been promoted to counsel at Latham & Watkins in New York, effective January 1. He represents investment and commercial banks and other financial institutions in a range of leveraged finance transactions, including acquisition financings, debt restructurings, cross-border transactions, and mezzanine and asset-based financings.

Veterinary Practice Partners (VPP), a trusted business partner to veterinarians, has named Sabrina Isherwood as its new Chief Marketing Officer. Isherwood brings more than 30 years of experience and will apply her expertise in world-class brand building and direct-to-consumer healthcare knowledge to the fast-growing field of veterinary practices. Founded in 2011, VPP’s mission is to provide compassionate, patient-centric care to companion animals that support and enhance the human-animal bond.

IDA Ireland (IDA), the Irish Government agency responsible for foreign direct investment, announced that Brian Conroy has been named executive vice president and director of North America. In his new role, Conroy will be based in IDA Ireland’s New York office and will oversee offices in Boston, Chicago, Atlanta and Austin, as well as Californiabased offices Irvine and Mountain View.

LAW

NONPROFIT

TELECOMMUNICATIONS

Latham & Watkins LLP

New York Edge

Transit Wireless

Javier F. Stark has been elected a partner at Latham & Watkins in New York, effective January 1. He represents private equity firms and public and private companies in M&A, dispositions, joint ventures, carve-outs, and other transactions and general corporate matters. He has experience in a range of industries, including healthcare, energy, and asset management.

Preeta Paragash has been promoted to counsel at Latham & Watkins in New York, effective January 1. Her practice focuses on advising investment banks, direct lenders, and corporate borrowers on a range of leveraged finance matters, with an emphasis on complex cross-border transactions and acquisition financings.

New York Edge, the metropolitan region’s largest provider of on-site afterschool programs, has appointed Peter Quiñones as its chief government contracts and compliance officer. In this role, he will manage New York Edge’s relationships with schools and government funders, and will introduce the organization’s programs to new schools throughout the city. Mr. w joined New York Edge in 2014, bringing extensive experience in government compliance, youth development and human resources.

Transit Wireless, a leading 5G wireless infrastructure company, announced that Jeff Garte has joined the company as chief financial officer. In his senior leadership role, Garte will drive financial strategy to facilitate the company’s growing 5G infrastructure buildouts and support its expanding publicprivate partnerships (P3s). Garte is based in New York City and will report directly to Melinda White, chief executive officer of Transit Wireless.

LAW

Blank Rome LLP William J. Anthony joined Blank Rome LLP’s New York office as a partner in the Labor & Employment and Class Action Defense groups. Will joins the Firm from Jackson Lewis P.C. where he served in several highlevel leadership roles, including firm co-chair and leader of the diversity committee. Will focuses his labor and employment practice on the strategic defense of class, collective, and multiparty actions, including a broad spectrum of federal and state law wage and hour claims.

NOVEMBER 23, 2020 | CRAIN’S NEW YORK BUSINESS | 25

P025_CN_20201123.indd 25

11/19/20 9:18 AM

Advertising Section

CLASSIFIEDS

To place a classified ad, Call 212-210-0189 or Email: jbarbieri@crainsnewyork.com PUBLIC & LEGAL NOTICES

Notice of Formation of ELMWOOD SQUARE HOUSING DEVELOPER, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 10/21/20. 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 122072543. Purpose: Any lawful activity. NOTICE OF FORMATION OF Law Office of Alexandra Bonacarti. Articles of Organization filed with the SSNY on 7/27/20. Office location: New York County.SSNY has been designated as agent upon whom process against it may be served. The address to which SSNY shall mail a copy of any process against the PLLC served upon hi m/her is: One Liberty Plaza, 23rd Floor, New York, NY 10006. The principal business address of the PLLC is: One Liberty Plaza, 23rd Floor, New York, NY 10006. Purpose:any lawful act or activity. NOTICE OF FORMATION OF LuLaLoCDC, LLC. Articles of Organization filed with the Secretary of State of NY (SSNY) on 09/11/2020. 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 against the LLC served upon him/her is: 210 W. 101st Street, Suite 6G. The principal business address of the LLC is: 210 W. 101st Street, Suite 6G.Purpose: any lawful act or activity Notice of Formation of HC HOLDCO IV LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 09/30/20. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Timothy P. Terry, 667 Madison Ave., 24th Fl., NY, NY 10065. Purpose: Any lawful activity. Notice of Formation of MOB Builders LLC. Arts of Org filed with Secy. of State of NY (SSNY) on 7/21/20. Office location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to 4610 Crane St, #401, Long Island City, NY 11101. Purpose: any lawful act Notice of Formation of WVA Service LLC, Arts. of Org. filed with SSNY on September 21, 2020. Office: BX County. SSNY designated agent of LLC upon whom process against it may be served. SSNY shall mail copy of process to LLC: 1015 Morris Park Ave, Bronx, NY 10462. Purpose: any lawful activity. Notice of formation of The Law Office of Kaitlin Rolston, PLLC. The Articles of Organization field with the Secretary of State of New York (“SSNY”) on September 10, 2020 in New York County. SSNY has been designated as agent upon whom process against it may be served. The Post Office address to which the SSNY shall mail a copy of any process against the PLLC served upon it is 43 West 43rd Street, Suite 275, New York, NY 10036. The principal place of business for the PLLC is 43 West 43rd Street, Suite 275, New York, NY 10036.

Notice of Qualification of Title Clearing & Escrow, LLC, Fictitious Name: Title Clearing & Escrow Agency, LLC. Authority filed with Secy. of State of NY (SSNY) on 09/25/20. Office location: NY County. LLC formed in Delaware (DE) on 06/06/19. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: c/o Registered Agent Solutions, Inc., 99 Washington Ave., Ste. 1008, Albany, NY 12260. Address to be maintained in DE: 9 E. Loockerman St., Ste. 311, Dover, DE 19901. Arts of Org. filed with the Secy. of State, Division of Corporations, John G. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: any lawful activities. WEALTH PLANNING ADVISORS, LLC, Arts. of Org. filed with the SSNY on 1 0/19/2020. Office loc: NY County. SSNY has been designated as agent upon whom process against the LLC may be served. SSNY shall mail process to: Alexander J. Mele, 555 West 23rd Street Apt. N6M, NY, NY 10011. Purpose: Any Lawful Purpose. 31 TMH Realty LLC. Appl. for Authority filed with Secy. of State of NY (SSNY) on 10/09/20. Off. loc.: NY Co. Orig. juris.: DE. SSNY des. as agent of LLC upon whom process may be served. SSNY shall mail process to the LLC, c/o Allison Young, 31 West 89th Street, New York, NY 10024. Purpose: General. NOTICE OF FORMATION OF Zemi Beauty LLC. Articles of Organization filed with the Secretary of State of NY (SSNY) on 10/08/2020. Office location and principal business address: 50 W 112th St., APT 1B, New York, NY 10026. SSNY is designated as agent for service of process. The Post Office address to which the SSNY shall mail a copy of any service of process against the LLC is: 606 W 57th St., APT 2603, New York, NY 10019. Purpose: any lawful act or activity. Notice of Formation of XAVIER DEVAUGHN LLC. Arts of Org filed with SoS of New York (SSNY) on 6/23/20. Office location: NY County. SSNY is designated as agent of LLC upon whom process may be served and shall mail copy of process against LLC to: 33W 19th St., 4th Fl, NY, NY 10011. R/A: US Corp Agents, Inc. 7014 13th Ave, #202, BK, NY 11228. Purpose: any lawful act. NOTICE OF FORMATION OF LIMITED LIABILITY COMPANY (LLC) The name of the LLC is: JACKSON TERRACE PRESERVATION, LLC Articles of Organization were filed with the Secretary of State of New York (SSNY) office on October 7, 2020. The County in which the Office is to be located: New York County, NY. The SSNY is designated as agent of the LLC upon whom process against it may be served. The address to which the SSNY shall mail a copy of any process against the LLC: 200 VESEY STREET, 24TH FLOOR, NEW YORK, NEW YORK 10281. Purpose: any lawful activity. SHERRY HSIEH LLC. Arts of Org filed with the Secy. of State of NY (SSNY) on 9/29/20. Office in NY County. SSNY designated as agent upon whom process may be served. SSNY shall mail process to 13 W 13th St Apt 2EN, New York, NY 10011. Purpose: any lawful activity

Notice of Formation of ELMWOOD SQUARE HOUSING CLASS B, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 10/21/20. 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 122072543. Purpose: Any lawful activity. Notice of Formation of HC HOLDCO V LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 09/30/20. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Timothy P. Terry, 667 Madison Ave., 24th Fl., NY, NY 10065. Purpose: Any lawful activity. Notice is hereby given that a license, number (Pending) for beer, cider, wine has been applied for by the undersigned to sell beer, cider, wine at retail in a tavern under the Alcoholic Beverage Control Law at 146 East 49th Street, New York, NY 10017 for on premises consumption. Manhattan Espresso Ltd. (DBA) Manhattan Espresso Cafe. Notice of Formation of EVENFEEL LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 10/27/20. Office location: NY County. Princ. office of LLC: 3587 Hammock St., Las Vegas, NV 10001. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to U.S. Corp. Agents, Inc., 7014 13th Ave., Ste. 202, Brooklyn, NY 11228. Purpose: Any lawful activity. Notice of Qualification of CALIBRANT WOODLAND II, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 10/13/20. Office location: NY County. LLC formed in Delaware (DE) on 09/24/20. Princ. office of LLC: 125 W. 55th St., NY, NY 10019. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c /o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543. DE addr. of LLC: c/o Corporation Service Co., 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, Div. of Corps., John G. Townsend Bldg., 401 Federal St., Dover, DE 19901. Purpose: Any lawful activity. Notice of Formation of HC HOLDCO III LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 09/30/20. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Timothy P. Terry, 667 Madison Ave., 24th Fl., NY, NY 10065. Purpose: Any lawful activity. Notice of Qualification for Public Sphere LLC. Authority filed with the Sec’y of State of New York (SSNY) on 3/4/20. Office loc: NY County. LLC formed in NJ on 5/1/19. SSNY designated agent upon whom process may be served and mailed to: The LLC, PO Box 1144, Hoboken, NJ 07030. LLC filed with NJ Dept of Treasury, 225 W State Street, Trenton, NJ 08625. Purpose: any lawful purpose.

Notice of Qualification of CALIBRANT WOODLAND I, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 10/13/20. Office location: NY County. LLC formed in Delaware (DE) on 09/24/20. Princ. office of LLC: 125 W. 55th St., NY, NY 10019. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c /o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543. DE addr. of LLC: c/o CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, Div. of Corps., John G. Townsend Bldg., 401 Federal St., Dover, DE 19901. Purpose: Any lawful activity. Notice of formation of WangaWoman, LLC. Articles of Organization filed with the Secretary of State NY (SSNY) on 10/14/2020. Office Location: NY County. SSNY is designated as an agent upon whom process may be served and shall mail a copy of the process against LLC to PO Box #2003, New York, NY 10159. Notice of Qualification of CALIBRANT TE DEVELOPMENT, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 10/13/20. Office location: NY County. LLC formed in Delaware (DE) on 09/24/20. Princ. office of LLC: 125 W. 55th St., NY, NY 10019. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543. DE addr. of LLC: c/ o CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, Div. of Corps., John G. Townsend Bldg., 401 Federal St., Dover, DE 19901. Purpose: Any lawful activity. Notice of Formation of ELMWOOD SQUARE HOUSING GP, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 10/21/20. 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 12207-2543. Purpose: Any lawful activity. Notice of Formation of FEDLAND, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 10/29/20. 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. Notice of formation of RokoPack LLC. Articles of Organization filed with the Secretary of State of New York (SSNY) on 09/08/2020. Location: New York County. SSNY designated as agent for service of process on LLC. SSNY shall mail a copy of process to: RokoPack LLC 210 east 15th Street 5L NY, NY 10003 Purpose: Any lawful activity. POEH LLC, Art. of Org. filed with SSNY 9-28-20. Office Location: NY County. SSNY designated as agent of the LLC for service of process. SSNY shall mail a copy of any process to c/o Dentons US LLP, 1221 6th Ave., NY, NY 10020, Attn: Brian Raftery. Purpose: Any lawful act or activity.

Notice of Formation of LEWIS ALAN REALTY, LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 10/16/20. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: c/o Lewis Plosky, 25 West 31st St., NY, NY 10001. Purpose: any lawful activities. Notice of Qualification of Prithvi Ventures, LLC. Authority filed with Secy. of State of NY (SSNY) on 10/16/20. Office location: NY County. LLC formed in Delaware (DE) on 09/ 08/20. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: Registered Agents Inc., 90 State St., STE 700 Office 40, Albany, NY 12207. Address to be maintained in DE: c/o Harvard Business Services, Inc., 16192 Coastal Hwy., Lewes, DE 19958. Arts of Org. filed with the Secy. of State, 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: any lawful activities. Notice of Qualification of MARC JONES CONSTRUCTION, L.L.C. Appl. for Auth. filed with Secy. of State of NY (SSNY) on 11/04/20. Office location: NY County. LLC formed in Louisiana (LA) on 07/20/07. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co., 80 State St., Albany, NY 12207-2543. LA addr. of LLC: 22171 McH Rd., Mandeville, LA 70471. Cert. of Form. filed with LA Secy. of State, 8585 Archives Ave., Baton Rouge, LA 70809. Purpose: Sales and installation of residential/ commercial photovoltaic systems including all electrical wiring. Residential energy efficiency grading & upgrades. Notice of Qual. of 502 PARK HOLDINGS, LLC, Authority filed with the SSNY on 09/04/2020. Office loc: NY County. LLC formed in DE on 04/ 01/2019. SSNY is designated as agent upon whom process against the LLC may be served. SSNY shall mail process to: The LLC, 233 Wilshire Blvd., Ste 850, Santa Monica, CA 90401. Address required to be maintained in DE: CSC, 251 Little Falls Drive, Wilmington DE 19808. Cert of Formation filed with DE Div. of Corps, 401 Federal St., Ste 4, Dover, DE 19901. Purpose: Any Lawful Purpose. Elam Professional Industrial Cleaning Services LLC. filed with SSNY on 09/16/2020. Office: New York County. SSNY designated as agent for process and shall mail copy to: 300 West 145 Street, #6T, New York, NY 10039. Purpose: Any lawful purpose. NOTICE OF FORMATION of Pilgrim & Associates Law Arbitration & Mediation LLC (LLC). Articles of Organization filed by the NY Secretary of State (SSNY) on 08/21/20. Office location: NY County. SSNY has been designated as agent upon whom process against LLC may be served. Post Office address where SSNY shall mail copy of any process against the LLC served upon it is c/o Pilgrim & Associates, 301 W 110th Street, NY, NY 10026. Purpose of LLC: to conduct any lawful act or activity. Street address of LLC is c/o Pilgrim & Associates, 301 W 110th Street, NY, NY 10026.

26 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 23, 2020

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OUT OF OFFICE PEARL RIVER MART FOODS LOCATION 75 Ninth Ave. (lower level of Chelsea Market) HOURS 11 a.m. to 7 p.m. Wednesday through Sunday WEBSITE pearlriver.com SIGNATURE DISHES Jian bao in pork, beef, chicken, lamb, ImpossiBao or Takoyaki shrimp (five for $10, Mao’s Bao)

PEARL RIVER MART FOODS

Pian’er chuan noodles with bamboo shoots, pork slices and snow vegetables (small: $3; large: $6, Mao’s Bao) Tuna kimbap roll: Rice, seaweed and tuna salad with mayo, carrots, cucumbers, pickled radish, red leaf lettuce, perilla leaf, cheddar cheese, sesame oil and sesame seeds ($12; $13 as a bowl, Kimbap Lab)

PEARL RIVER MART FOODS

Korean beef broth: Beef broth with white radishes, salt, pepper, mushroom and soy sauce (from $5.50 for 12 oz. to $10.95 for 32 oz., Kimbap Lab) Lavender black milk tea with signature cream ($5.50 to $6, Tea and Milk)

Elevated snacks as you shop

Pearl River Mart adds bao, kimbap and tea vendors with latest outpost

ince 1971 Pearl River Mart has offered New Yorkers assorted products from China. The store’s main location moved from SoHo to Chelsea Market by 2017, where it has just opened an offshoot specializing in food. The effort is helmed by Joanne Kwong, the daughter-in-law of the owners, Ching Yeh and Ming Yi Chen. At Pearl River Mart Foods, Kwong has created space for three local

prepared-foods vendors to serve up dishes while customers browse dozens of Asian products made both abroad and in New York City. She wanted to create a place where shoppers could discover new cuisines during visits, she said. The resulting store, on the lower level of Chelsea Market, features three vendors, all of which take traditional fare, elevate it and add their own twist.

Mao’s Bao, of Smorgasburg fame, specializes in jian bao, colorful pan-fried buns stuffed with either classic pork or chicken or inventive fillings such as apple pie. Tea and Milk grinds its own taro for bubble tea. And Kimbap Lab specializes in a Korean dish similar to a sushi roll but made with cooked ingredients. The eatery serves it with dipping sauces such as ssamjang aioli and seaweed puree.

Although the project began pre-pandemic, the past eight months saw Kwong pushing to open while keeping her other stores on track. It was terrifying, she said, but the food location came to symbolize hope. “It was important to get the store open and to celebrate the small victories where we could,” she said. The groceries sold at the market include breads from Philippine Bread House, a Jersey City bakery; fresh Asian fruits and vegetables such as dragon fruits and loquats; frozen dumplings from dim sum restaurant Nom Wah; soy milk from Fong On, the oldest tofu shop in the city; and myriad jars and bottles of chili and — Cara Eisenpress hot sauces.

RESTAURANT NEWS AND NOTES

SANT AMBROEUS BROOKFIELD 8 a.m. to 5 p.m. daily, with delivery and takeout from 11 a.m. to 9.p.m. The Italian-inspired café, which has seven other locations in the city, has opened at large downtown office building Brookfield Place, with a whole floor of private dining rooms. The menu replicates mainstays from the

other branches, including gelato, ice cream, tiramisu and snack-size sandwiches. 200 Vesey St., Brookfield Place

Wagyu beef from different Japanese brands. Indoor and outdoor seating is available, and the restaurant plans to add takeout options, including a cook-at-home Wagyu barbecue kit, soon. 239 E. Fifth St., East Village

J-SPEC 5 to 10 p.m. Tuesday through Saturday During the pandemic’s restaurant closures, Japanese meat distributor Tomoe Food Services lost some of its customers. To reach diners directly, the company has now opened this spot, which focuses on

KING WANG’S 11 a.m. to 8 p.m. Sunday and Tuesday through Thursday; 11 a.m. to 10 p.m. Friday and KING WANG’S Saturday Casual American classics are inflected with Korean, Japanese and Chinese flavors at this gourmet sandwich restaurant. Dishes include a fried chicken sandwich with Szechuan slaw and Korean pepper sauce, a bulgogi-inspired cheesesteak and ramen fries. KING WANG’S

JACX&CO 11 a.m. to 9 p.m. Monday through Friday; weekend hours coming soon At a soon-to-open office campus, this plaza-level food hall brings together stalls of fast-casual restaurants, some favorites from throughout the city and others brand new. One of the eateries is Ghaya, a café run by Ghaya Oliveira, who was the executive pastry chef at Daniel. It combines Tunisian

and French cuisine. Others include Fieldtrip, a rice-focused restaurant from Harlem, and Lotus & Cleaver, which combines Chinese flavors and locally sourced ingredients. There are 215 total seats, a quarter of which are currently open in following Covid-19 restrictions. Outdoor dining and a full-service bar will launch eventually. 28-17 Jackson Ave., Long Island City

J-SPEC

RACHEL VANNI

JACX&CO

191 Knickerbocker Ave., Bushwick SUGAR HILL CREAMERY 3 to 10 p.m. Wednesday and Thursday; 3 to 11 p.m. Friday; noon to 11 p.m. Saturday; noon to 10 p.m. Sunday Three-year-old Harlem ice cream shop Sugar Hill Creamery has launched its second location, farther uptown. Some flavors are always on the menu, such as Andy Griffith (a vanilla whose taste originates off the coast of Africa), but others, such as Jet Lag (ginger ice cream with peanut brittle and chocolate pretzels), will rotate through the fall. There’s also an ice cream hot chocolate and coffee, and pints can be ordered on Seamless and Grubhub. 3629 Broadway, Hamilton Heights — C.E.

NOVEMBER 23, 2020 | CRAIN’S NEW YORK BUSINESS | 27

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