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

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OCTOBER 4, 2021

BACKGROUND CHECKS

REAL ESTATE

Job gains spotlight ‘Wild West’ industry

DURST

Manhattan real estate is dominated by family-owned powerhouses, including some of the city’s largest developers

Sterling CEO claims a ‘low error rate,’ but watchdogs see trouble

KUSHNER

BY AARON ELSTEIN

mployers are scrambling to hire, and business is booming at Sterling Check, a company that scrutinizes job applicants’ past for information omitted in résumés and that doesn’t come up in interviews. Last month the Manhattan-based company went public at a $2 billion valuation, and its share price has risen as investors anticipate that the hot job market will further stoke demand for background checks. But Sterling’s rise comes with one deeply discordant note: The firm often costs job seekers work by wrongly identifying them as criminals. “They mix up people all the time,” said Mark Mailman, a lawyer who has INCREASE filed several in first-half lawsuits against revenue, to $300 Sterling. “Even million, for the after they’re newly public asked to fix backgroundcheck company things, they still make mistakes.” Grace Grissom of Jacksonville, Fla., said she was denied a nanny job after Sterling reported she had a record of felony burglary and grand theft charges that actually belonged to an individual with a completely different name. Robert Duncan, a military veteran in Port Lavaca, Texas, alleged he was denied a job at a security company after Sterling falsely reported he’d been charged with

BY NATALIE SACHMECHI

efore joining the family business, Samantha Rudin attempted an acting career. Nicole Kushner put in a decade at Ralph Lauren, focusing on the design and development of retail experiences before joining her family’s Kushner Cos. Rob Speyer, who leads Tishman Speyer, tried his hand at reporting for the New York Daily News. Even Anita Durst—the rebellious daughter of real estate scion Douglas Durst who ran away from home as a teenager and never made it to work at her family’s firm— wants her son to intern there next summer. These real estate heirs all feel the lure of New York City development, a uniquely family-driven industry, where firms large and small look to their kin to carry the business forward, a tradition that presents its own set of

M. RUDIN

S. RUDIN

44%

SPEYER

ISTOCK, BUCK ENNIS, GETTY IMAGES

See FAMILY on page 18

See STERLING on page 20

NEWSPAPER

VOL. 37, NO. 35

TECH SPOTLIGHT

STARTUP USES DATA TO HELP HOMEOWNERS MAKE CHOICES PAGE 23

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FOCUSED VISION Warby Parker’s post-IPO plans include opening more stores

THE LIST

The metro area’s largest accounting firms PAGE 12

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Crain’s names new sales manager VETERAN SALES EXECUTIVE Courtney McCombs has been promoted to sales manager at Crain’s New York Business. McCombs, who rejoined the publication in April, will be responsible for driving revenue growth and providing leadership to the brand’s sales team. “We are fortunate to promote a talented sales executive who is MCCOMBS familiar with our audience and our clients,” said Frederick P. Gabriel Jr., the publisher and executive editor of Crain’s New York Business. “Courtney’s focus will be on broadening our client base. She’ll also work closely with our sales and marketing teams to ensure we are meeting clients’ needs and surpassing their expectations.” McCombs previously served as an account executive at Crain’s New York Business from 2007 to 2015.

WEBCAST CALLOUT

FINANCE

Melrose Credit Union CEO gets 46 months in prison BY AARON ELSTEIN

bers who drove taxis at all hours to pay down their loans. “You don’t get it,” the judge said as judge has sentenced the forKaufman shook his head vigorously. mer chief executive of Melrose “This was a family-run business,” Credit Union to 46 months in Kaplan said of the credit union led prison after a conviction at trial on previously by Kaufman’s father and two counts of bribery. grandfather. “If you ran a delicatesAlan Kaufman, 62, ran one of the sen, you could do what you want. city’s most important taxi-medallion KAUFMAN But this was a federally insured credlenders until shortly before its collapse in 2017. In March a Manhattan jury it union, and you were oblivious to that fact.” Kaufman’s activities were exposed by childfound him guilty of accepting a rent-free condo from Tony Georgiton, the president of a hood friend and former Melrose marketing large Queens taxi fleet and an important Mel- director Rob Nemeroff, who filed a whisrose customer known as “Tony the Greek.” tleblower complaint with regulators after getKaufman also was convicted of accepting lav- ting fired in 2015. In a statement, U.S. Attorney Audrey Strauss ish vacations from CBS Radio as a reward for said, “Kaufman shirked his duty to act in the Melrose buying more advertising. Kaufman said in court last Wednesday that best interests of the credit union and its ache had some regrets. He said he was sorry that count holders, exploiting his position for perhe’d forged Georgiton’s name on checks and sonal gain.” Georgiton was sentenced to probation in wished he had told the Melrose board about January after pleading guilty to bribery. Judge his housing arrangement. Federal Judge Lewis Kaplan was unim- Kaplan declined to lock up Georgiton because pressed. He said Kaufman showed no remorse Covid rates were so high at the time. Kaufman is to surrender to the Bureau of nor any understanding that he’d broken the law and done wrong by Melrose’s 20,000 mem- Prisons on Nov. 29. ■

OCT. 28 CRAIN’S NEW YORK NOW SUMMIT: TOURISM’S COMEBACK Tourism is a critical driver of the city’s economy and was one of the industries most damaged by the pandemic. Almost overnight every part of the sector ground to a halt and temporarily closed down: restaurants, hotels, Broadway theaters and other entertainment venues. For Crain’s New York Now Summit, we’ll delve into the city’s fledgling visitor comeback, how the numbers are looking and what the industry and the government can do to recharge and reinvent tourism here.

VIRTUAL EVENT Time: 4 to 5 p.m. CrainsNewYork.com/ OctoberNYNSummit

Vol. 37, No. 35, October 4, 2021—Crain’s New York Business (ISSN 8756-789X) is published weekly,except for a combined issue on 1/4/21 and 1/11/21, 6/28/21 and 7/5/21, 7/12/21 and 7/19/21, 7/26/21 and 8/2/21, 8/9/21 and 8/16/21 and the last issue in December. 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. $140.00 per year. (GST No. 13676-0444-RT) ©Entire contents copyright 2021 by Crain Communications Inc. All rights reserved.

We’re proud to be New York’s #1 ranked children’s hospital. But care goes beyond numbers. That’s why we created the Cohen Children’s Bill of Rights — to ensure our youngest patients feel empowered. When we raise kids’ health, we raise everyone. Visit RaiseHealth.com/Kids and see why we’re #1 in New York.

BEING #1 IS ONLY PART OF RAISING KIDS’ HEALTH 2 | CRAIN’S NEW YORK BUSINESS | OCTOBER 4, 2021

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RETAIL

WARBY PARKER EYES REAL ESTATE The brand is focusing on opening storefronts after going public at a nearly $7 billion value BY RYAN DEFFENBAUGH

he real estate industry should keep an eye on this one. SoHo glasses retailer Warby Parker debuted on the New York Stock Exchange at a nearly $7 billion value last Wednesday, a strong response to the company’s direct listing, which saw its value rise 30% from its reference price of $40 per share. Though the firm is best known for selling its products online, a major part of its vision is expanding its physical retail presence, adding 35 stores this year alone. “If we look at most of our large competitors, they have thousands of retail stores across the U.S.,” said David Gilboa, the company’s co-founder and co-CEO, during the firm’s virtual investor day. “So that just underscores the massive opportunity we have.” Founded 11 years ago, Warby Parker was a pioneer of the direct-to-consumer online business model. By avoiding department stores, the company’s leadership said it could

“UNLESS YOU ARE PAYING FOR ADS OR FINDING SOME WAY TO GET IN FRONT OF PEOPLE ONLINE, THEY WILL FORGET ABOUT YOU”

Stores as billboards Part of the advantage for physical retail, in Warby’s case, is lowering its cost to acquire customers. For digital brands, winning over buyers online requires spending big on advertising with Facebook and Google. Plus, Warby Parker pays to ship out glasses for customers to try on at home. “Unless you are paying for ads or finding some way to get in front of people online, they will forget about you,” said Daniel McCarthy, assistant professor at Emory University’s Business School. “A store is a big billboard. People can go in and buy things, but

WARBY PARKER operates a dozen stores in New York.

when you are walking down the street and see the store, it at least triggers that awareness.” Warby Parker in 2019 spent $27 in marketing, on average, for each customer it acquired, according to its S-1 filing. In 2020, with store purchases limited, the total climbed to $40 on average. In the company’s S-1, it noted that it absorbed higher costs last year amid a surge in home try-ons. Although the company declined to disclose any future locations, Warby Parker’s interest in physical retail is a promising sign for the struggling market. Prepandemic, e-commerce companies moving into storefronts helped boost some shopping districts. That’s particularly true in SoHo, where many online brands followed Warby’s lead. During the pandemic, SoHo has been one of the hardest-hit retail markets, with CBRE finding an

estimated 30% of space up for grabs in the spring, the period with the most recent data.

Pandemic protections Other digital brands are eyeing the retail market as well. Online makeup brand Glossier in July closed an $80 million funding round it said would fund new stores. San Francisco– based shoe company Allbirds has filed for an initial public offering and plans to open hundreds of stores nationally. The firm currently has 26, including two in New York—in SoHo and on the Upper West Side. Ed Coury, managing director at RCS Real Estate Advisors, which has consulted with direct-to-consumer companies, said many brands spent aggressively on real estate in the

BUCK ENNIS

offer high-quality frames at a lower price. It raised some eyebrows, then, when Warby Parker revealed that 65% of its $370 million in 2019 revenue came from in-store sales, according to the S-1 filing the company made in August with the U.S. Securities and Exchange Commission, the first regulatory step in going public. Online sales brought in the majority of Warby Parker’s revenue in 2020. That can be credited largely to the fact that its stores were closed for two months in response to the pandemic, then had limited capacity the rest of the year. The company said in the filing that it has seen a shift “back toward preCovid-19 levels” in the first half of 2021. Warby Parker opened its first retail store in 2013 near its headquarters in SoHo and had 142 stores total as of June 30. A dozen of those stores are in New York. California is its largest physical retail market, with 21 locations.

years leading up to the pandemic and struggled when those stores were forced to close. But with digital sales strong, brands are returning to brick-and-mortar, though at a slower pace and with pandemic protections built into lease terms. “They are not seeing a negative impact on online business as stores reopen, and now you have stores performing at 85%, 95% or even above 2019 levels,” Coury said. “So though there may be a shift in how consumers are buying products, brick-and-mortar is still viable when properly executed.” Warby Parker reported $270 million in revenue for the first half of 2021, up about 50% year over year, with a $7 million loss during that span. ■ OCTOBER 4, 2021 | CRAIN’S NEW YORK BUSINESS | 3

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WHO OWNS THE BLOCK

550 WASHINGTON ST.

As Google snags a reinvented former train hub, nearby properties also could be in play Notable neighbors include a Norway sovereign-wealth fund and UPS BY C.J. HUGHES

PIER 40 Built in the 1960s as a cruise-ship terminal, this 282,000-square-foot facility now has much different uses. One is a self-service parking garage; fees, which start at $420 per month, help underwrite operations of next-door Hudson River Park, a 4-mile ribbon lined with bike paths. The pier also offers athletic fields and a rooftop trapeze school. The piles that hold up the structure are in bad shape, according to officials, who used the rezoning of the St. John’s site to drum up money for repairs. In 2017 the St. John’s ownership group paid $100 million for 200,000 square feet of air rights owned by Pier 40, and some neighbors protested the extra stories that those rights allow.

160 LEROY ST. Although the area might be grittier than nearby SoHo and the West Village, that hasn’t stopped residential developers from building large, expensive condominiums—like this one from the team of Ian Schrager, Weinberg Properties and William Gottlieb Real Estate. The 13-story, 56-unit, wavywalled offering, which came to market in 2015, has taken its time selling; sponsor units still appear to exist in the building. But the three units on the market late last month were all in contract, including a four-bedroom listed at about $12 million.

575 WASHINGTON ST. Despite incursions by residential and office developers on Far West Side blocks in recent years, the neighborhood hasn’t sanded down all its rough edges. Truck garages hang on, including this 2-story, nearly full-block version, which seems to have functioned for the same purpose since being built in 1925. In 2003 Palma Terminal sold the property to an LLC for about $7 million, records show. This year the city assessed the 27,000-squarefoot red-brick facility at $6.8 million, down from $8.9 million last year.

550 WASHINGTON ST. This 12-story office tower, which layers eight floors of glass-walled new construction atop a 4-story concrete base, was leased by Google starting in 2019. But last month the tech giant, invoking an option in its lease, said it instead wanted to purchase the building, for $2.1 billion, from owner Oxford Properties. It was one of the priciest offers for an office in recent years. The deal is expected to close early next year, with Google arriving in 2023. The tower is part of the larger St. John’s Terminal site, a 1930s complex that once stored dozens of trains used by the adjacent elevated railroad. Sections of that railroad to the north are now the High Line park, but its terminal had resisted redevelopment. The architect, FXCollaborative, preserved original train tracks in the tower’s design. But Oxford razed a car tunnel covering West Houston Street that was considered an impediment to pedestrians.

345 HUDSON ST.

353 SPRING ST. As Hudson River Park evolved and industrial land morphed into lawns, Department of Sanitation garbage trucks that once parked along the river were displaced. So the city built a home for them here, on the site of a UPS parking lot. The 8-story result, which opened in 2014 and is officially known as the 1/2/5 garage, has space for 150 city vehicles as well as UPS trucks. At the same time, the city constructed a crystal-shaped $20 million storage facility across the street for 5,000 tons of road salt. Both structures were initially controversial; some celebrities who live in pricey condos nearby opposed them. But both have gone on to win design awards.

Know of a great block for Crain’s to explore? Email us at WhoOwns@ CrainsNewYork.com.

325 SPRING ST. UPS is a notable presence in the neighborhood. Delivery trucks park, and packages are sorted, at this mammoth facility, which encompasses several blocks and buildings between West Houston and Spring streets. The main structure, a 480,000-square-foot, 3-story edifice, sits south of West Houston Street. There’s also a small parcel at 318 W. Houston St. that features gasoline pumps for UPS trucks. Both sites were purchased from the Port Authority in one fell swoop in 1992 for $23 million, records show.

550 Washington was not Google’s first Hudson Square home. It rents space in this 17-story, prewar 980,000-square-foot office building, which also counts CBS, Viacom and developer Hines as tenants. For years, the building was owned by Trinity Real Estate, an arm of Trinity Church, which owns much of Hudson Square. But in 2016, Trinity sold a 44% interest in an 11-building portfolio to Norges Bank Investment Management, a Norwegian sovereign-wealth fund, for about $1.6 billion. Trinity also sold a 1% stake, for $35 million, to Hines, which manages the portfolio. Google’s other nearby berth is at 315 Hudson St., a 10-story former candy factory owned by Jack Resnick and Sons. Google, one of three office tenants there, occupies more than 400,000 square feet at the 483,000-square-foot building.

BUCK ENNIS, GOOGLE MAPS

decades-long attempt to remake one of the last industrial pieces of Manhattan’s West Side took a big leap forward last week when Google bought 550 Washington St., a reinvented former train hub, for $2.1 billion. The company’s investment in the 12-story office building has been hailed as a vote of confidence in a struggling office market. It also marks a new chapter for a site once considered a real-estate Bermuda triangle, sucking in developers with the promise of a three-block parcel before they ultimately scotched their plans. “We felt the gravity of the opportunity,” said Dean Shapiro, head of U.S development for Toronto-based Oxford Properties, a seller, “and the responsibility to get it right.” Purchased by Eugene Grant and Lionel Bauman from a defunct railroad in the 1960s, the long concrete complex, called St. John’s Terminal, has been home to data-processing facilities, including for Bloomberg, and large-scale events such as fashion shows. But more ambitious proposals to take advantage of its cavernous rooms never came to fruition. About a decade ago, investors began showing serious interest in the property. In 2012 Atlas Capital and Fortress Investment bought Grant’s stake for $541 million, though Fortress turned around and unloaded its share three years later to Westbrook Partners for $200 million. Then Westbrook and Atlas began shopping around some of their stake, attracting a list of suitors that included Brookfield Properties, RXR Realty and Vornado Realty Trust. The winning bid came from Oxford and its partner, CPP Investments. In 2018 they paid $700 million for their piece of St. John’s. (Westbrook and Atlas retain a portion of the site, a fenced-in empty parcel at West Houston Street, where two apartment towers with affordable and senior citizen housing are planned.) Aware that whatever went up on the 5-acre St. John’s site could have sig nificant implications, city officials exempted it in their 2013 rezoning of the Hudson Square neighborhood. Instead, in 2016, the officials created a separate rezoning process for just the site. One result was that the owner could buy air rights from the Pier 40 athletic complex across the street, but the price would be $100 million for extensive repairs. Observers who have watched proposals come and go are glad that one has finally stuck. “It was always a big, hunking piece of clay that nobody really knew what to do with,” said Doug Harmon, chairman of capital markets at Cushman & Wakefield, who handled several St. John’s sales. “But Google will make value there.” ■

4 | CRAIN’S NEW YORK BUSINESS | October 4, 2021

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Stepping up when it matters most Last year, we committed $1.25 billion over five years to build on our long-standing work in support of driving racial equality and economic opportunity. To date, we’ve directly funded or invested nearly $400 million of this commitment, in addition to other ways we continue to make an impact in our communities. Our actions include: •

$36 million to 21 Minority Deposit Institutions (MDIs) and Community Development Financial Institution (CDFI) banks that support minority-owned businesses. This is in addition to our approximately $100 million in deposits to MDIs and our existing $1.8 billion CDFI portfolio.

•

$300 million to 100 equity funds to provide capital to diverse entrepreneurs and small business owners

•

$10 million grant to fund the Center for Black Entrepreneurship (CBE), in partnership with Spelman and Morehouse colleges

•

$25 million to 21 Historically Black Colleges and Universities (HBCUs), Hispanic-serving institutions (HSIs) and community colleges in support of job skilling and placement

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Establishing new partnerships and coalitions focused on building skills and creating job opportunities for people of color

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$60 million to increase access to capital and career opportunities for Black, Indigenous and People of Color (BIPOC) affordable housing developers

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33 million+ masks, more than 272,000 bottles of hand sanitizer and 8 million gloves to communities in need

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$1.35 million in grants to support mental health initiatives for young people of color

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$25 million founding partnership in the Smithsonian’s new initiative on race, Our Shared Future: Reckoning with Our Racial Past

These are just some examples of how we’re working with community partners, business leaders, experts and academics across the public and private sectors to continue to drive progress. At Bank of America, we call this a nice start.

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9/28/21 2:26 PM

IN THE MARKETS

Much to everyone’s chagrin, the bond market is actually getting interesting once again Inflation is driving up the cost of everything from housing to Chesapeake Bay crabmeat

s written in A Midsummer from the pattern have resulted in Night’s Dream, “I perceive some sort of “financial accident,” Bloomberg columnist John Authers a weak bond.” The single most im- observed. A spike in yields in 1987 portant number in all of finance, led to the stock market crashing by the 10-year Treasury bond yield, 22% in a single day. In 1994 Orange has been so strong for so long that County, Calif., sank into bankruptany sign of weakness causes alarm. cy. In 2007 the housing market colThe yield, which moves inversely lapsed. And in late 2018 the stock to price, has risen noticeably in re- market took a mostly forgotten whacking. cent days, to 1.54%. That In every instance bond is the highest it’s been yields calmed down after since early June. the Federal Reserve asWe shouldn’t get too concerned yet, even sured markets that it though congressional Rewould do everything in its power to keep interest publicans seem intent on rates low. shutting down the govThe difference now is ernment for the seventh that inflation is driving up time since 1990 while replaying the debt-ceiling AARON ELSTEIN everything from New York housing to Chesapeake fight that in 2011 cost the Bay crabmeat, which sadnation its AAA credit ratly has tripled in price. If the Fed ing. Let’s remember that the yield on concludes inflationary pressures the 10-year bond hit about 1.75% in aren’t temporary, it will raise shortMarch, and it was near 2% just be- term rates, the 10-year bond yield fore the pandemic. It yielded better will rise, and it will get painful for any commercial, government or than 3% in 2018. consumer borrower with a lot of Inflationary pressures short-term or floating-rate debt. Commercial landlords could be But it would be a mistake to say there’s nothing to worry about. The particularly vulnerable because most durable trend in finance for they finance operations mostly nearly 40 years has been falling with borrowed money. SL Green bond yields. Meaningful deviations Realty said in its annual report that

a 1% increase in rates would lift its annual interest expense by $35 million—a meaningful bite for a firm that paid out about $300 million in dividends to investors last year. Paramount Group is seeking to refinance an $850 million mortgage for 1301 Sixth Ave. that carries a 2.59% interest rate and matures in November. Technology companies could be affected as well. Etsy shares were down 7% on a recent morning. The Brooklyn e-tailer’s debt load has more than doubled in the past year, to $2.3 billion. Peloton Interactive warned in its annual report in August that rising interest rates could chill demand for the exercise bikes that many buy with borrowed money. Its stock has fallen by 23% since late August. “Reductions in consumer lending and the availability of consumer

AP PHOTO

Tech demand

credit could limit the number of customers with the financial means to purchase our products,” Peloton said. It’s certainly possible the bond-market hiccup is no more perilous than the dozens of similar blips we’ve seen over the years. The bedrocks of New York’s economy—

finance and real estate—might continue on their merry way. Then again, in the Shakespeare play mentioning the “weak bond,” a love potion made from a flower’s sap was distorting people’s judgment, and they got lost in the woods. There might be a lesson in that for the market. ■

HEALTH CARE

City’s former health commissioner Bassett getting warm reception as she steps into state’s top role

ov. Kathy Hochul’s announcement last Wednesday that Dr. Mary Bassett will replace Dr. Howard Zucker as the state health commissioner was well received by lawmakers and medical professionals alike. Bassett had been commissioner of the city’s Department of Health and Mental Hygiene from 2014 to 2018. Her appointment is effective Dec. 1. Assemblyman Richard Gottfried, chair of his chamber’s health committee and whose district covers part of Midtown, praised Bassett on

the Bronx, approved of the appointment. “Gov. Hochul’s nomination of Dr. Mary Bassett as our state’s next health commissioner is a clear indication that she wants to quickly redirect the agency’s role back to its core mission—to protect and improve the health and well-being of all New Yorkers,” he said. Additionally, Bassett, the first Black person appointed to lead the state agency, has had an exemplary career of enacting forward-thinking, compassionate and efficient public health initiatives focused on reducing deeply rooted health disparities, which have been exacerbated during the pandemic, Rivera said.

“SHE KNOWS HOW HEALTH DEPARTMENTS WORK, AND SHE KNOWS NEW YORK” Twitter as being a “solid public health professional with strong progressive values.” Similarly, state Sen. Gustavo Rivera, chair of his chamber’s health committee and who has a district in

Frayed ties

The Legislature’s warm reception of Bassett is a good sign that relations between the agency and Albany can be repaired, especially because those ties had been frayed toward the end of Zucker’s tenure, said Mark Ustin, partner at Farrell Fritz and former

how health departments work, and she knows New York,” he noted. “She’s a great pick.”

Renewed trust

GETTY IMAGES

BY SHUAN SIM

aide to Gov. George Pataki. Zucker and the Health Department had been lambasted for reportedly stonewalling inquiries from the Legislature about nursing home deaths. They also had been criticized for their alleged role in a contentious policy to discharge Covid patients from hospitals to nursing homes. “It’s rare to find a physician with

her qualifications who is so dedicated to public service—and to social justice,” Ustin said. Bassett’s role in city government makes her ready to hit the ground running come December, Ustin said. “Dr. Bassett’s appointment ensures that the person stepping into that position isn’t going to have a steep learning curve. She knows

Bassett’s appointment could spell renewed public trust in the Health Department and hopefully draw talent to the agency, Rivera said. “I also hope that this new direction at the Department of Health will encourage capable and public health–oriented professionals to join the agency after so many departed due to the previous administration’s lack of commitment to investing in public health,” he said. Medical professionals likewise applauded Hochul’s pick. “We are confident that Dr. Bassett is the right person at the right time to see New York state through to the end of the Covid-19 pandemic,” said Dr. Joseph Sellers, president of the Medical Society of the State of New York. ■

6 | CRAIN’S NEW YORK BUSINESS | October 4, 2021

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HEALTH CARE

BY MAYA KAUFMAN

ov. Kathy Hochul had signed an executive order late last Monday to expand the health care workforce as the clock ticked down on the deadline for the state's Covid-19 vaccine mandate. However, after the mandate went into effect at midnight Tuesday, most local hospitals began reporting that they were able to weather its impact on staffing on their own. There was no indication Tuesday that facilities in the New York metropolitan area had to avail themselves of the newly available contingencies, although the city's public hospital system brought in 500 nurses to fill in for about the same number of unvaccinated nurses put on leave. Greater New York Hospital Association President Kenneth Raske said he knew of isolated instances of facilities downsizing services but declined to identify them or the affected service lines.

Ready for action The mandate was issued Aug. 16, giving the state’s unvaccinated health care workers six weeks' lead-

up time to get at least one dose of a vaccine to secure their continued employment. As of Sept. 27, 92% of employees at hospitals, 92% of nursing home workers and 89% of adult-care facility staff had received at least one dose, according to preliminary data provided by Hochul's office. Hochul’s executive order allows her to use emergency powers to deploy medically trained National Guard members and bring in retired or out-of-state health care workers to alleviate any staffing shortages due to the loss of unvaccinated workers. “I am pleased to see that health care workers are getting vaccinated to keep New Yorkers safe, and I am continuing to monitor developments and ready to take action to alleviate potential staffing-shortage situations in our health care systems,” Hochul said in a statement Tuesday. Several hospital spokespeople told Crain's they expect the rates to increase further in the coming days as newly furloughed employees get the vaccine so they can return to work. Statewide, about 2% of hospital staff, 1% of nursing home em-

AP PHOTO

Area hospitals find little need to turn to Plan B as vaccine mandate for medical workers takes effect

ST. BARNABAS HOSPITAL says 97% of its 3,000 employees have been vaccinated. ployees and 3.5% of staff at adult care facilities have not gotten their first dose but said they plan to get vaccinated.

High rates St. Barnabas Hospital in the Bronx achieved a vaccination rate around 97% among its 3,000 employees, including several dozen who got the vaccine the last day before the deadline. The hospital put 65 unvaccinated workers on leave

and will terminate their employment Oct. 4 if they do not get at least one dose by then, a spokesman said. About two dozen workers have exemptions. Rates were even higher among large health systems such as NYU Langone and New York-Presbyterian, which both reported 99% compliance with the mandate among their tens of thousands of employees. Mount Sinai said close to 99% of its staff has been vaccinated

Northwell Health did not have data immediately available Tuesday but said in a statement that its 67,000-person workforce is "already nearly 100% vaccinated." The system, which operates 23 hospitals, has started the process of terminating unvaccinated employees, including about two dozen clinical and nonclinical leaders who were fired recently. It has 3,000 retirees, volunteers and health care students on standby to fill any shortages but has yet to call on any of them, a spokeswoman said. The One Brooklyn Health system did not respond to a request for comment. Montefiore said it does not have its numbers yet. Raske said it was clear that making vaccination a condition of continued employment was a major impetus for health care workers, as evidenced by a "large turnout of employees that decided in the last 24 hours to get vaccinated." “We're in a position where I think the mandate can be absorbed by the health care system,” he said. ■

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October 4, 2021 | CRAIN’S NEW YORK BUSINESS | 7

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chief executive officer K.C. Crain senior executive vice president Chris Crain group publisher Jim Kirk

EDITORIAL

Health care industry’s high vaccination rate shows that employer mandates do work

publisher/executive editor Frederick P. Gabriel Jr. EDITORIAL editor-in-chief Cory Schouten assistant managing editor Telisha Bryan deputy digital editor, audience & analytics

Jennifer Samuels associate editor Lizeth Beltran art director Carolyn McClain photographer Buck Ennis data editor Amanda Glodowski senior reporters Cara Eisenpress,

Aaron Elstein, Eddie Small reporters Ryan Deffenbaugh, Maya Kaufman,

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according to preliminary data provided by Hochul’s office. “I am pleased to see that health care workers are getting vaccinated to keep New Yorkers safe, and I am continuing to monitor developments and ready to take action to alleviate potential staffing-shortage situations in our health care systems,” Hochul said in a statement Tuesday. The health care industry’s experience showcases what some in the business community have suspected all along. Despite Hail Mary attempts to seek exemptions from an employer-implemented vaccine mandate, most workers ultimately will choose to get the shot rather than lose their job. Although there is data to back up the Great Resignation, the average MOST WORKERS ULTIMATELY employee, especialWILL CHOOSE TO GET THE SHOT ly one who has not been waiting for an RATHER THAN LOSE THEIR JOB excuse to chase another dream, knows that having a job during among workers. As Health Pulse such an uncertain time is more reporter Maya Kaufman found, as important than proving a point. of Monday evening, 92% of That the health care sector can employees at hospitals, 92% of serve as an example of what can nursing home workers and 89% of go right when a stringent manadult-care facility staff had date (the industry had waived received at least one dose, ast Tuesday the state’s Covid-19 vaccine mandate for health care personnel went into effect without the massive worker exodus some had feared. Indeed, the day before, Gov. Kathy Hochul had announced an executive order allowing the state to call in medically trained National Guard members to fill in for all the hospital workers expected to walk off the job after weeks of grumbling that such a mandate was a violation of rights so grievous that the only remedy was to leave one’s post over it. Thankfully in the end, state hospitals and health care facilities reported high compliance levels

religious exemptions from its guidelines) is implemented is especially salient. If anyone should know firsthand about the absolute horrors of this pandemic, it’s the city’s medical workers. If anyone should know that science trumps conspiracy theories, it’s the city’s medical workers. Seeing them get on board in order to keep their patients free of Covid-19 spread from outside sources should serve as an example for all workers. As Crain’s has opined before,

mandates work best when there are actual consequences. Don’t want the shot? Well, you can’t work here. Prefer not to get a dose? I’m sorry, but you can’t dine here. Vaccination rates will improve citywide when we stop fooling around and really get down to enforcement. And the business community across sectors plays an important role in letting New Yorkers know that when it comes to ending this pandemic once and for all, we mean, well, business. ■

ADVERTISING

www.crainsnewyork.com/advertise sales manager Courtney McCombs account executives Kelly Maier,

Christine Rozmanich, Laura Warren people on the move manager Debora Stein,

dstein@crain.com CUSTOM CONTENT custom content coordinator Ashley Maahs,

ashley.maahs@crain.com associate director, custom content marketing

Sophia Juarez, sophia.juarez@crainsnewyork.com EVENTS

www.crainsnewyork.com/events Managing Director, Marketing and Events

Jill Heise, jill.heise@crain.com marketing manager Jessica Botos,

jessica.botos@crainsnewyork.com

OP-ED

manager of conferences & events

Court challenges to vaccine mandates are underway. How employers should prepare.

Ana Jimenez, ajimenez@crainsnewyork.com REPRINTS director, reprints & licensing Lauren Melesio,

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

BY MARISA SANDLER

hen the state Department of Health issued a regulation mandating Covid-19 vaccination for certain health care workers in August, covered employers feared staffing shortages and a decline in medical care as a result. Despite those concerns, when the deadline for personnel working at general hospitals and nursing homes arrived Sept. 27, thousands of health care workers received their first vaccine dose as required. Although the last-minute push was an encouraging sign, there is still a long way to go. Many health care workers remain unvaccinated, and personnel working in home care, hospices and adultcare facilities face their own deadline of Oct. 7 to receive their first dose. Additionally, court challenges to the vaccine mandate are underway. On Sept. 14, a federal judge in Utica temporarily blocked New

York from enforcing the mandate with respect to health care workers with religious exemptions. A group of 17 Catholic and Baptist medical professionals—including doctors and nurses—challenged the mandate, arguing that it violated their religious beliefs in violation of the U.S. Constitution and anti-discrimination laws because currently authorized Covid-19 vaccines employed aborted fetal cells in their testing, development or production. They also claim that, because the mandate requires personnel to be “fully vaccinated” “continuously,” they could be required to be vaccinated “as many times as the government advises,” which might include booster shots.

No fetal cells in vaccines The state has opposed the challenge, highlighting the need for vaccination in light of the highly contagious Delta variant and the increased risk that health care workers and their patients face without vaccination. The state also

stressed that, while fetal cells might have been used in research, development and production, none of the currently authorized vaccines ultimately contain any fetal cells.

Inconsistent exemption Moreover, the absence of a religious exemption is consistent with numerous, similar pre-existing regulations. Health care workers are already required to receive at least one vaccination (for rubella), which was developed using the same fetal-cell lines. As a result, a religious exemption actually would be inconsistent with pre-existing regulations. Importantly, the temporary restraining order is in effect only until Oct. 12, at which time a judge is expected to rule on the request for a preliminary injunction. To receive the injunction, the medical professionals must show that they have a strong likelihood of success on the merits, that they could suffer irreparable harm, that the balance of equities weighs in their fa-

vor, and that an injunction is in the public interest—which is not an easy feat. Moreover, even if a preliminary injunction is granted, it does not resolve the ultimate question of whether the vaccine mandate is lawful. It could still be upheld. As employers await a decision, they should be prepared for two scenarios. The first is to consider the need for accommodations based on religious beliefs and engage in interactive dialogues with employees to explore reasonable accommodations on a case-bycase basis. The second is to mandate vaccination irrespective of religious beliefs as required by the mandate. Employers should consult counsel when a request for an accommodation arises to ensure that they derive the greatest benefit from the latest information and guidance. ■ Marisa Sandler is an employment lawyer at Tannenbaum Helpern Syracuse & Hirschtritt.

Simone Pryce media services manager Nicole Spell SUBSCRIPTION CUSTOMER SERVICE

www.crainsnewyork.com/subscribe customerservice@crainsnewyork.com 877.824.9379 (in the U.S. and Canada). $140.00 one year, for print subscriptions with digital access. Entire contents ©copyright 2021 Crain Communications Inc. All rights reserved. ©CityBusiness is a registered trademark of MCP Inc., used under license agreement. CRAIN COMMUNICATIONS INC. chairman Keith E. Crain vice chairman Mary Kay Crain chief executive officer K.C. Crain senior executive vice president Chris Crain secretary Lexie Crain Armstrong editor-in-chief emeritus Rance Crain chief financial officer Robert Recchia founder G.D. Crain Jr. [1885-1973] chairman Mrs. G.D. Crain Jr. [1911-1996]

8 | CRAIN’S NEW YORK BUSINESS | OCTOBER 4, 2021

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10/1/21 4:02 PM

OP-ED

BY RUBEN IZGELOV

lthough it will take years for the full effects of the U.S. Centers for Disease Control and Prevention’s eviction moratorium to hit the housing market, we can see that it was a poorly conceived policy with consequences that were never adequately addressed. On the one hand, many momand-pop landlords are facing financial hardship or even ruin. On the other, countless tenants have slipped into insurmountable debt that could haunt them for years to come. To put the current moment into context, since the 2007–2008 finan-

aftermath of the crash, Wall Street funds acquired loss-making single-family units en masse from distressed lenders. Those investors played the long game, holding onto the units and placing them on the rental market. Given the yields their strategy generated and the stability of this investment class, institutional investors such as Blackstone and KKR have continued with the strategy.

Institutional investors

Single-family rentals traditionally have been dominated by momand-pop and midsize investors, but the growing presence of institutional investors in the space shows no signs of abating. According to a Redfin study, during the first half of this year, $77 billion of inCOUNTLESS TENANTS stitutional capital has been HAVE SLIPPED INTO spent acquiring residential destined for the INSURMOUNTABLE DEBT properties rental market. With the lifting of the cial crisis, we’ve witnessed a grad- CDC eviction moratorium, instituual restructuring of residential tional investors might have more rental property ownership toward opportunities to strengthen their institutional investors. Lured by hand and expand their holdings. government incentives during the In a survey this year by the Na-

tional Rental Home Council, 23% of small landlords said they plan to sell at least one property due to the impact of the moratorium. Also, with average home values being at all-time highs, especially in prime suburban single-family markets, plenty of struggling landlords will have an exit strategy that should cover their losses while still leaving enough left over to make a good profit. A lot will depend on whether financially distressed landlords have confidence that rental- assistance checks will arrive—and if the checks will cover what they’re owed. But for landlords looking to cut their losses, they’ll soon have the ability to start evicting nonpaying tenants. How soon that is, though, is an open question. There is already a significant backlog of cases, and plenty of states still have their own eviction moratoriums in place.

BLOOMBERG

An unintended consequence of the eviction ban: A restructuring of the residential real estate market

What’s more, many judges will expect landlords to have exhausted every avenue for rental assistance before bringing eviction proceedings to court. We could be on the cusp of a significant restructuring of the residential real estate market, with small and midsize landlords offloading inventory to institutional buyers eager for rental property in-

ventory. That would be yet another unintended consequence of the eviction moratorium, one that once again hurts the little guy. ■ Ruben Izgelov is managing partner of We Lend, a nationwide private lender focused on serving real estate investors by providing quick and low-cost capital.

OP-ED

BY MELISSA FLEISCHUT

fter the hardships experienced by the restaurant industry during the past year and a half, many operators around the city are rightfully outraged to be used as a tool by the city government for its “ultimate encouragement” to get vaccinated: the new Key to NYC incentive program. We want to clearly state that New York City restaurants are not looking to stand in the way of vaccination. We are not contesting the merits of being vaccinated. But we are speaking out in strong opposition to the way this program targets our industry and forces us to be agents of public health, vaccine police, vaccine bouncers and more.

hardest hit by the Covid-19 pandemic. Many of these businesses have barely been open and operating during the past year and a half. Although retail outlets, salons and other business sectors may continue enjoying the reopening of New York City, suddenly those who endured the most hardships are forced to shoulder a vaccine mandate. It is wrong and adds insult to injury.

Much-needed business Keeping unvaccinated New Yorkers from our dining rooms poses its own equity problem. Across the city, different populations are disproportionately less vaccinated than others, including certain communities of color, neighborhoods in the outer boroughs, religious communities and the disabled community. We understand the goal is to get these exact groups vaccinated. However, effectively “grounding” them until they are vaccinated is just going to sow discord in the city and take away much-needed business from our restaurants. The “reasonable accommodations” suggested for people with medical and religious exemptions still amount to exclusion from our dining rooms—which we cannot

AT THE END OF THE DAY, IT BOILS DOWN TO ISSUES OF EQUITY AND FAIRNESS At the end of the day, it boils down to issues of equity and fairness. New York restaurants are tired of being penalized in the name of a bigger cause. We take issue with the inequity of hand-picking sectors to fall under the mandate. Restaurants, bars, theaters, event spaces and arts venues have been some of the

tolerate. Requiring restaurants to check the official ID of anyone attempting to show vaccination records raises an additional equity and access problem. The issue of equity with the program extends to our workforce. The restaurant and bar workforce is spread thin, extremely hardworking and composed of those who donned masks to work throughout the pandemic as essential workers. Now they’re being told to get vaccinated or get fired. They are not being afforded the same testing alternative offered to other sectors of the workforce. Taking a look back at the “reasonable accommodations” for staff members, New York City advises an unpaid leave of absence or the ability to do their job outside, remotely or sequestered from others. Our pregnant staff, staff with disabilities and staff with sincerely held religious convictions who were more than capable of working, masked, throughout the pandemic are now being “incentivized” by their very job security, and that is absolutely wrong.

BLOOMBERG

In wake of vaccine incentive program, restaurants say they’re tired of bearing weight of the pandemic

The Key to NYC is being advertised as an incentive program. Many New York restaurants are not interested in being a tool for incentivization. Restaurants are especially not happy to have their suggestions and concerns largely ignored in favor of a publicity push that has often put the horse before the carriage. Restaurants asked for the opportunity to take attestations from customers and staff. They asked for a testing alternative to level the

playing field for their staff. They asked not to be punished when people violate their businesses by breaking the mandate. All those suggestions received lip service as “good points” but were never implemented. New York City restaurants are exhausted by being forced to bear the weight of the pandemic, and they’re just asking for a break. ■ Melissa Fleischut is president and CEO of the New York State Restaurant Association.

October 4, 2021 | CRAIN’S NEW YORK BUSINESS | 9

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9/30/21 2:11 PM

ASKED & ANSWERED American Jewish Joint Distribution Committee

INTERVIEW BY AMANDA GLODOWSKI

AGE 58

ast October Ariel Zwang became the first woman to lead the American Jewish Joint Distribution Committee. The nonprofit, which operates in 70 countries, provides aid to vulnerable Jews, with focuses on poverty, education and disaster relief. Zwang, who has more than 20 years of nonprofit leadership under her belt, takes the helm of a philanthropic organization at a time when donors might be overwhelmed by the wealth of humanitarian efforts to support or holding on to their dollars until the economy stabilizes. She also is steering the nonprofit through a recent increase in antisemitic rhetoric. What was it like taking over a global organization during the Covid-19 pandemic?

There has been an ocean of ink spilled about the benefits and disadvantages of Zoom. Taking over a global organization, obviously there are major benefits to being able to talk with people all over the world every single day. But, boy, is it a disadvantage to not be able to go personally.

What’s your take on social media–based activism?

WHO SHE IS Chief executive of the American Jewish Joint Distribution Committee

What recent years have taught us all is that social media allows entities to communicate directly with a large

HOMETOWN West Hartford, Conn. RESIDES Upper West Side EDUCATION Bachelor’s in applied mathematics, Harvard; MBA, Harvard Business School FAMILY LIFE Zwang is married to Gordon Mehler, and the couple have two young-adult daughters. FAVORITE COMMUTE Zwang likes to ride a Citi Bike along Riverside Park to get to her office. She says the rides are even more enjoyable now that she can be mask-free. ISRAEL FOCUS “I spent a month in Israel from mid-June to mid-July,” she said. “About twothirds of our colleagues around the world are based there. It was an incredible opportunity to do the systemic work to help Israel become the kind of inclusive, egalitarian society every free and democratic society can be.”

swath of the public in ways that used to be mediated. It’s an incredible communication tool. What society is grappling with is how that can be used for good and not for good. The world is a much smaller place now. The fact that any one in any part of the world can feel immediately connected with

What is donor fatigue?

Donor fatigue means that there are causes that might be chronic in nature, and there can be so many of them that donors can throw up their hands and say, “I tried to help, but evidently I can’t.” Maybe they used to give, but they don’t anymore. It’s people saying, “I helped with this and I helped in that, but when will it end?”

How can people concerned by specific issues push through that feeling?

By having the humility to say, “Chronic problems with society may not end in my lifetime, but that doesn’t mean that my lifetime spent fighting the good fight doesn’t matter.” We see progress decade after decade and century after century for sure, and we have to stay engaged. The patience isn’t in weathering the problems. It’s with sticking with the solutions that aren’t always immediate.

How has the recent spike in antisemitism affected your organization?

We never feel more relevant than when we’re needed most. As antisemitism increases, we’re needed more. It’s gratifying that we bring tools developed over 107 years to help communities respond. Our work is to support Jewish communities around the world and to help strengthen them to withstand whatever is here and whatever may come. ■

BUCK ENNIS

ARIEL ZWANG

someone in another part of the world can only be positive. The downside is the quality control of the messages.

DOSSIER

#501F3A

CRAIN’S NEW YORK BUSINESS 2021

WOMEN IN LAW

WOMEN IN LAW Honor Notable Women in Law in New York City! Nominations are now open! Recognize women who are serving as role models and mentors to other women attorneys, promoting inclusive practices in the workplace, and who are serving in a senior level at their law firm. This is a special print and digital editorial feature within Crain’s December 20 issue.

WOMEN IN LAW WOMEN IN LAW

SUBMIT TODAY: CrainsNewYork.com/NotableWomenLaw Nominations close on October 22.

10 | CRAIN’S NEW YORK BUSINESS | October 4, 2021

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9/30/21 3:42 PM

SPONSORED CONTENT

Top considerations for an athlete’s name, image and likeness significant impact on the net cash, resulting in the biggest benefit to be deducted, is agent commissions. The athletes will need to talk with their certified public accountant or tax adviser as to what is and what isn’t deductible. In addition, the tax return-filing process will get more complicated with the potential of having to pay tax liabilities on a quarterly basis. These can easily be forgotten and can result in significant interest and penalties if not handled properly.

t’s an amazing time to be a college athlete. As of July 1, plenty of athletes have cashed in on the NCAA’s recent ruling, which permits athletes to earn money from their name, image and likeness. A short window exists for these young athletes to cash in on their NIL opportunities, and the process will move quickly from the offer to the payment. It will be crucial for them to receive the right financial guidance to ensure the proper plan is in place and there are no unpleasant surprises. What are the top four considerations an athlete’s NIL must take into account? 1. Independent contractor vs. employee Collegiate athletes will likely be treated as independent contractors and their compensation will be reported on a 1099 form for any NIL deals. The obvious and important distinction between being treated and paid as an independent contractor versus as an employee: There will be no tax withholdings at source for independent contractors. It should not be viewed as a negative, but rather as an opportunity for deducting appropriate expenses and other planning opportunities. The ability to deduct relevant business expenses will allow the true economics of the deal to line up with tax liability calculation. Generally, the expense with the most

2. State and local income tax The issue of state income taxes can become complex and burdensome with issues relating to residency, domicile, and income-sourcing requirements. It will be important to understand the structure of the deal, for the services being performed, and the location of services. If the athlete lives in California, attends school in Florida, and signs a deal to work with a national company that requires social media posts, what tax returns should the athlete file? How will the income be sourced? Are there opportunities to structure this deal to reduce tax liabilities? These are all questions that should be answered early in the process to save headaches down the road. It is also worthwhile to note that state income tax laws can have a real impact on the decisionmaking process when selecting a school’s sports program. If there are big dollars on the table, it might be worth exploring a school in a state with no state income tax and working through some of the questions we posed above. 3. Cash flow and budgeting Given the lack of tax withholdings, it is important to talk about cash flow and budgeting. When we read the headlines of these recent blockbuster contracts, the focus is on the total contract dollars. There is not much thought or discussion about the net compensation the student athlete will bring home after

ABOUT THE AUTHOR Douglas J. Cammarano, CPA Partner & Sports Leader dcammarano@citrincooperman.com

taxes and expenses. In most cases, there will be either agents or other representatives or both who are paid a fee for bringing the deal to the table. The fees can range from a few percent up to 20%. When federal and state taxes are added in, it is easy to see how net income can be substantially less than the initial number presented to the athlete in bold. These unavoidable expenses and personal needs are the driving force behind the cash flow and budget conversation. One scenario where it’s critical to plan and budget is when an athlete is given a brand-new car to drive for a year. It sounds like fun, but the use of the car will likely be treated as taxable income and, without proper planning, the athlete could very well not have the cash to pay the probable tax liability. While we are focusing on the cash deals, do not lose sight of the fact noncash deals can be problematic if not approached correctly. There are so many variables and personal circumstances that can affect the situation, further highlighting the importance of establishing a clear financial plan.

short-term goals could include allocating a portion of the net proceeds into a traditional investment account, making a large asset purchase such as a new home for the family, or private investments that fit the overall investment thesis. The same emphasis should be placed on long-term goals such as retirement planning. In both situations, the decisions should be based on building and preserving wealth. Whether the student athlete enters a professional league or enters the workforce, the financial benefits received today if invested properly have the ability to compound over time and be worth substantially more in the future. This year’s college athleteentrepreneurs may find it difficult to evade unwelcome opportunists seeking to exploit their new money. With their vast

amounts of quickly generated wealth and financial naïveté, they may find themselves needing to deflect attempts to deviate from an otherwise sound investment strategy. These unsolicited intrusions typically present themselves as bulletproof venture capital deals or as startups promising substantial financial gains. By ensuring that the athletes are surrounded by a trusted team that helps build and adhere to a framework on how wealth management decisions are formulated, financial mishaps can be avoided. As these new financial opportunities grow in size and develop in complexity, it is becoming more important to work closely with advisers to help lay out business and personal goals. It is a great time to engage student athletes and teach or reinforce principles that will prove valuable in their lives. These are opportunities that can easily be squandered through no fault of the athletes. There can be many great people in the lives of young athletes who care deeply about them but lack the financial education to plan for all of these questions. As such, it is crucial to have the right team in place and get the right guidance to set up the right foundation.

4. Wealth management After the student athlete signs the deal and determines the net cash after taxes and expenses, we would recommend the savings be invested wisely, keeping both short- and long-term goals in mind. These

Our C-Suite Snacks webinar series provides the middle market with brief, strategic and tactical business improvement information for 30 minutes every week. Join Citrin Cooperman’s C-Suite Snacks live every Thursday at noon for snack-size insights for business executives. Sign up at https://rebrand.ly/csuitesnacks for our weekly C-Suite Snacks invites.

P011_CN_20211004.indd 11

9/27/21 2:56 PM

THE LIST LARGEST ACCOUNTING FIRMS Ranked by number of New York–area professionals

RANK

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

AMANDA.GLODOWSKI@CRAINSNEWYORK.COM

2021 NEW YORK–AREA TOTAL ACCOUNTING PROFESSIONALS/ % CHANGE

2021 NEW YORK–AREA AUDITING AND ACCOUNTING PROFESSIONALS

2021 NEW YORK–AREA TAX PROFESSIONALS

2021 NEW YORK–AREA MANAGEMENT ADVISORY SERVICES PROFESSIONALS

2021 FIRMWIDE ACCOUNTING PROFESSIONALS/ % CHANGE

2020 FIRMWIDE REVENUE (IN MILLIONS)/ % CHANGE

12,956

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312,000 +9.9%

$40,000.0 +9.9%

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MANAGING PARTNER(S) IN NEW YORK–AREA OFFICE

EY One Manhattan West New York, NY 10001

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Herb Engert

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Brad Silver

12,106 1 +5.5%

KPMG US 345 Park Ave. New York, NY 10154

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Yesenia Scheker

7,963 +2.1%

1,615

n/d

179,168 +3.9%

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Deloitte 30 Rockefeller Plaza New York, NY 10112

212-492-4000 deloitte.com

Roger Arrieux

5,696 +6.3%

5,696

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Charles Weinstein

1,238 +3.6%

674

394

170

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212-485-5500 marcumllp.com

Jeffrey Weiner

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2,000 0.0%

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BDO USA, LLP 3 100 Park Ave. New York, NY 10017

212-885-8000 bdo.com

Mathew DeMong Demetrios Frangiskatos

959 +10.6%

419

307

220

71,046 +3.7%

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Stuart Taub

845 +8.2%

291

293

261

40,700 +11.5%

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Grant Thornton 757 Third Ave. New York, NY 10017

212-599-0100 grantthornton.com

Matthew DiDonato

839 -1.9%

273

n/d

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PKF O'Connor Davies LLP 245 Park Ave. New York, NY 10167

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Kevin Keane

725 +11.5%

320

140

100

925 +15.6%

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680 +4.6%

265

375

1,100 +4.8%

$315.0 +12.5%

539 +3.1%

287

188

712 +6.6%

$218.0 0.0%

518 4 -28.2%

229

199

2,508 +14.4%

$680.0 -1.7%

In these challenging times, Citrin Cooperman & Co. LLP 212-697-1000 have you received theStacy Gilbert 50 Rockefeller Center citrincooperman.com New York, NY 10020 support, insight and advice Mazars USA LLP 212-812-7000 Robert DeMeola 135 W. 50th St. mazars.us you need to position your New York, NY 10020 CohnReznick 212-297-0400 Alan Wolfson business for success? 1301 Sixth Ave. cohnreznick.com

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RAN

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176

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Friedman 1 Liberty Plaza New York, NY 10006

212-842-7000 friedmanllp.com

Frederick Berk Harriet Greenberg

385 +12.2%

182

158

589 +18.5%

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338 -4.0%

142

117

338 -4.0%

$125.0 n/d

326 +1.6%

194

345 +7.5%

$92.0 +7.9%

145

n/d

515 -2.5%

$137.1 +39.6%

125

108

3,964 +11.3%

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111

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250 0.0%

$137.0 +2.2%

122

232 +1.3%

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We provide a range of financial Berdon LLP 212-832-0400 Mark Bosswick 360 Madison Ave. berdonllp.com Stuart Kotler reporting, tax and advisory services to New York, NY 10017 address your challenges, including: Grassi 212-661-6166 Louis Grassi 488 Madison Ave. New York, NY 10022

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108

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Jeff Gluck

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51 3,516 Learn more at anchin.com.

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2,748 +6.9%

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1,093 +33.6%

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3 4 5 6 7 8 19 21 31 41 51 61 71 81 91 1 1 12 12 12 12 1 2 1 2 1 2 1 2 2 22 22 3 2 2

3:49 PM

New refe cha firm

COM

20 DE (IN S)/ GE

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9.1 2%

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5.0 5%

8.0 0%

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3.0 0%

7.5 3%

3 4 5 6 7 8 19 210 311 412 513 614 715 816 917 18 10 19 Moving Forward. Together. 11 20 12 Wherever you are heading, the accountants 21 and advisors at EisnerAmper can connect 13 knowledge, industry experience, 22 market 14 and personal support to provide solutions 15 23 for your business. 16 Learn more at EisnerAmper.com 24 17 25 18 26 19 27 20 28 21 29 22 30 23 24 RANK

KPMG US 345 Park Ave. New York, NY 10154

212-758-9700 kpmg.com/us

Yesenia Scheker

7,963 +2.1%

1,615

n/d

179,168 +3.9%

$29,220.0 -1.8%

Deloitte 30 Rockefeller Plaza New York, NY 10112

212-492-4000 deloitte.com

Roger Arrieux

5,696 +6.3%

5,696

n/d

72,418 -27.0%

$23,157.0 n/d

EisnerAmper 733 Third Ave. New York, NY 10017

212-949-8700 eisneramper.com

Charles Weinstein

1,238 +3.6%

674

394

170

1,853 +10.4%

$420.1 +10.4%

Marcum 730 Third Ave. New York, NY 10017

212-485-5500 marcumllp.com

Jeffrey Weiner

1,100 +12.8%

n/d

2,000 0.0%

$689.1 +10.2%

BDO USA, LLP 3 100 Park Ave. New York, NY 10017

212-885-8000 bdo.com

Mathew DeMong Demetrios Frangiskatos

959 +10.6%

419

307

220

71,046 +3.7%

$9,600.0 +6.8%

RSM US 151 W. 42nd St. FIRM/ ADDRESS New York, NY 10036

212-372-1000 rsmus.com PHONE NUMBER/

Stuart Taub

2021 NEW YORK–AREA 845 TOTAL ACCOUNTING +8.2% PROFESSIONALS/ % CHANGE

2021 NEW YORK–AREA AUDITING 291 AND ACCOUNTING PROFESSIONALS

293 2021

NEW YORK–AREA TAX PROFESSIONALS

2021 NEW YORK–AREA 261 MANAGEMENT ADVISORY SERVICES PROFESSIONALS

2021 FIRMWIDE 40,700 ACCOUNTING +11.5% PROFESSIONALS/ % CHANGE

$5,740.0 REVENUE (IN +6.3% MILLIONS)/

Grant Thornton EY 757 Manhattan Third Ave. West One 10017 New York, NY 10001

212-599-0100 212-773-3000 grantthornton.com ey.com

Matthew DiDonato Herb Engert

839 12,956 -1.9% +8.2%

273 12,956

n/d

7,286 312,000 -0.6% +9.9%

$1,920.0 $40,000.0 -1.5% +9.9%

PKF O'Connor Davies LLP PwC 245 Madison Park Ave.Ave. 300 10167 New York, NY 10017

212-286-2600 646-471-3000 pkfod.com pwc.com

KevinSilver Keane Brad

725 1 12,106 +11.5% +5.5%

320 n/d

140 n/d

100 n/d

Citrin Cooperman & Co. LLP KPMG US 50 Rockefeller 345 Park Ave. Center 10020 New York, NY 10154

212-697-1000 212-758-9700 citrincooperman.com kpmg.com/us

Stacy Gilbert Yesenia Scheker

680 7,963 +4.6% +2.1%

265 1,615

375 n/d

35 n/d

1,100 179,168 +4.8% +3.9%

$315.0 $29,220.0 +12.5% -1.8%

Mazars USA LLP Deloitte 135Rockefeller W. 50th St.Plaza 30 10020 New York, NY 10112

212-812-7000 212-492-4000 mazars.us deloitte.com

RobertArrieux DeMeola Roger

539 5,696 +3.1% +6.3%

287 5,696

188 n/d

64 n/d

712 72,418 +6.6% -27.0%

$218.0 $23,157.0 0.0% n/d

CohnReznick EisnerAmper 1301Third SixthAve. Ave. 733 New York, NY 10017 10019

212-297-0400 212-949-8700 cohnreznick.com eisneramper.com

Alan Wolfson Charles Weinstein

518 4 1,238 -28.2% +3.6%

229 674

199 394

70 170

2,508 1,853 +14.4% +10.4%

$680.0 $420.1 -1.7% +10.4%

Marks Paneth Marcum 685 Third Ave. 730 New York, NY 10017

212-503-8800 212-485-5500 markspaneth.com marcumllp.com

Abe Schlisselfeld Jeffrey Weiner Harry Moehringer

447 1,100 -0.4% +12.8%

176 n/d

260 n/d

10 n/d

490 2,000 -3.7% 0.0%

$143.0 $689.1 +0.7% +10.2%

Friedman BDO USA, LLP 3 1 Liberty 100 Park Plaza Ave. 10006 New York, NY 10017

212-842-7000 212-885-8000 friedmanllp.com bdo.com

FrederickDeMong Berk Mathew Harriet Greenberg Demetrios Frangiskatos

385 959 +12.2% +10.6%

182 419

158 307

45 220

589 71,046 +18.5% +3.7%

$145.0 $9,600.0 +7.4% +6.8%

Berdon RSM USLLP 360 W. Madison Ave. 151 42nd St. 10017 New York, NY 10036

212-832-0400 212-372-1000 berdonllp.com rsmus.com

Mark Bosswick Stuart Taub Stuart Kotler

338 845 -4.0% +8.2%

142 291

117 293

79 261

338 40,700 -4.0% +11.5%

$125.0 $5,740.0 n/d +6.3%

GrassiThornton Grant 488 Third Madison 757 Ave.Ave. 10022 New York, NY 10017

212-661-6166 212-599-0100 grassicpas.com grantthornton.com

Louis Grassi Matthew DiDonato

326 839 +1.6% -1.9%

194 273

95 n/d

19 n/d

345 7,286 +7.5% -0.6%

$92.0 $1,920.0 +7.9% -1.5%

Prager Metis CPAs PKF O'Connor Davies LLP 14 Penn 245 ParkPlaza Ave. 10122 New York, NY 10167

212-643-0099 212-286-2600 pragermetis.com pkfod.com

StuartKeane Mayer Kevin

320 725 -7.2% +11.5%

89 320

145 140

n/d 100

515 925 -2.5% +15.6%

$137.1 $220.0 +39.6% +10.0%

CroweCooperman & Co. LLP Citrin 485Rockefeller Lexington Ave. 50 Center 10017 New York, NY 10020

212-572-5500 212-697-1000 crowe.com citrincooperman.com

Christopher Stacy GilbertOliva Bill Hoving

311 680 +16.0% +4.6%

125 265

78 375

108 35

3,964 1,100 +11.3% +4.8%

$1,210.2 $315.0 +2.4% +12.5%

Anchin Block & Anchin Mazars USA LLP 1375W.Broadway 135 50th St. 10018 New York, NY 10020

212-840-3456 212-812-7000 anchin.com mazars.us

Russell DeMeola Shinsky Robert

250 539 0.0% +3.1%

139 287

111 188

n/d 64

250 712 0.0% +6.6%

$137.0 $218.0 +2.2% 0.0%

Raich Ende Malter & Co. CohnReznick 1375 Sixth Broadway 1301 Ave. 10018 New York, NY 10019

212-944-4433 212-297-0400 rem-co.com cohnreznick.com

Ellis Ende Alan Wolfson Neal Kilbane Jr.

232 518 4 +1.3% -28.2%

108 229

122 199

2 70

232 2,508 +1.3% +14.4%

$65.0 $680.0 +3.2% -1.7%

Baker Tilly Marks Paneth 1 Penn Plaza 685 Third Ave. New York, NY 10017 10119

212-697-6900 212-503-8800 bakertilly.com markspaneth.com

Christine Fenske Abe Schlisselfeld Harry Moehringer

221 447 +11.1% -0.4%

91 176

79 260

51 10

3,516 490 +1.9% -3.7%

$789.6 $143.0 +4.6% +0.7%

WEBSITE

MANAGING PARTNER(S) IN NEW YORK–AREA OFFICE

925 1 55,500 +15.6% +16.6%

2020 FIRMWIDE

% CHANGE

$220.0 2 $43,032.0 +10.0% +1.5%

CBIZ and Mayer Hoffman 212-790-5700 Jeff Gluck Berk 165 75 35 35 2,748 $973.0 Friedman 212-842-7000 Frederick 385 182 158 45 589 $145.0 McCann cbiz.com 0.0% +6.9% +2.0% 1 Liberty CPAs Plaza 5 friedmanllp.com Harriet Greenberg +12.2% +18.5% +7.4% 5 Bryant mhmcpa.com New York,Park/ NY 10006 1065 Sixth Ave. Berdon LLP 212-832-0400 Mark Bosswick 338 142 117 79 338 $125.0 New York, NY 10018 360 Madison Ave. berdonllp.com Stuart Kotler -4.0% -4.0% n/d Withum 212-751-9100 Bill Hagaman 149 76 53 6 1,093 $257.5 New York, NY 10017 1411 Broadway withum.com +0.7% +33.6% +15.3% Grassi 212-661-6166 Louis Grassi 326 194 95 19 345 $92.0 New York, NY 10018 488 Madison Ave. grassicpas.com +1.6% +7.5% +7.9% Janover 516-542-6300 Mark Goodman 134 79 55 n/d 134 $35.0 New York, NY 10022 100 Quentin Roosevelt Blvd. janoverllc.com -1.5% -1.5% +9.3% Prager 212-643-0099 Stuart Mayer 320 89 145 n/d 515 $137.1 Garden Metis City, NYCPAs 11530 14 Penn Plaza pragermetis.com -7.2% -2.5% +39.6% UHY York, LLP 6NY 10122 212-381-4700 Michael Mahoney 123 61 54 1 839 $189.2 New 1185 Sixth Ave. uhy-us.com +15.0% +25.0% +22.0% Crowe 212-572-5500 Christopher Oliva 311 125 78 108 3,964 $1,210.2 New York, NY 10036 485 Lexington Ave. crowe.com Bill Hoving +16.0% +11.3% +2.4% Goldstein Lieberman Phillip Goldstein 104 34 50 10 104 n/d New York, NY 10017 & Co. LLC 201-512-5700 1 International Blvd. glcpas.com +8.3% +8.3% n/d Anchin & Anchin 212-840-3456 Russell Shinsky 250 139 111 n/d 250 $137.0 Mahwah,Block NJ 07495 1375 Broadway anchin.com 0.0% 0.0% +2.2% Frankel Starr & 516-874-8800 Alan Frankel 83 7 76 n/d 90 n/d New York,Loughran NY 10018 Vallone LLP flsv.com Seth Starr +23.9% +28.6% n/d Raich Ende Malter 212-944-4433 Ellis Ende 232 108 122 2 232 $65.0 1475 Franklin Ave. & Co. Charles Vallone 1375 rem-co.com Neal Kilbane Jr. +1.3% +1.3% +3.2% GardenBroadway City, NY 11530 New York, NY 10018 DDK & Co. LLP 212-997-0600 Richard Klinghoffer 75 67 43 22 75 n/d Baker 212-697-6900 Christine Fenske 221 91 79 51 3,516 $789.6 1 PennTilly Plaza ddkcpas.com Allen Dorkin +10.3% +10.3% n/d 1 Penn Plaza bakertilly.com +11.1% +1.9% +4.6% New York, NY 10119 New York, NY 10119 Buchbinder Tunick & Co. LLP 212-695-5003 Greg Auteri 45 32 10 0 93 $22.9 CBIZ Mayer Hoffman 212-790-5700 Jeff 165 75 35 35 2,748 $973.0 1 Pennand Plaza buchbinder.com MarcGluck Newman +9.8% +20.8% +2.8% 5 McCann cbiz.com 0.0% +6.9% +2.0% New York,CPAs NY 10119 5 Bryant Park/ mhmcpa.com October 4, 2021 | CRAIN’S NEW YORK BUSINESS | 13 1065 Sixth Ave. New York, NY 10018 New York area includes New York City and Nassau, Suffolk and Westchester counties in New York and Bergen, Essex, Hudson and Union counties in New Jersey. Crain's New York Business uses staff research, extensive surveys and the most current

references available to produce its lists, but there is no guarantee that the listings are complete. To qualify for this list, firms must have an office in the New York area. n/d-Not disclosed. 1--Crain's estimate, based on other Big 4 average percent 76 McCann are associated 53 through an alternative-practice 6 $257.5 change. 2--FromWithum Accounting Today. 3--Acquired MBAF.212-751-9100 in Hagaman 361 employees moved from New York 149 area 5--CBIZ and Mayer Hoffman structure.1,093 CPA 4--Office relocation resultedBill 6--UHY is an independent firm organized1411 underBroadway an alternative practice structure with UHY Advisors Inc. P012_P015_CN_20211004.indd 13 9/30/21 3:49 PM withum.com +0.7% +33.6% +15.3%

New York, NY 10018

11 12 THE 13 LIST LARGEST ACCOUNTING FIRMS 14 15 16 17 1 218 319 420 521 622 723 8 24 9 25 10 26 11 27 12 28 13 29 14 Redefining what 30 15 you should 16 expect from 17 your accountant. 18 19 grassicpas.com 20 21 22 23 24 RANK

50 Rockefeller Center New York, NY 10020

citrincooperman.com

+4.8%

+12.5%

Mazars USA LLP 135 W. 50th St. New York, NY 10020

212-812-7000 mazars.us

Robert DeMeola

539 +3.1%

287

188

712 +6.6%

$218.0 0.0%

CohnReznick 1301 Sixth Ave. New York, NY 10019

212-297-0400 cohnreznick.com

Alan Wolfson

518 4 -28.2%

229

199

2,508 +14.4%

$680.0 -1.7%

Marks Paneth 685 Third Ave. New York, NY 10017

212-503-8800 markspaneth.com

Abe Schlisselfeld Harry Moehringer

447 -0.4%

176

260

490 -3.7%

$143.0 +0.7%

Friedman 1 Liberty Plaza New York, NY 10006

212-842-7000 friedmanllp.com

Frederick Berk Harriet Greenberg

385 +12.2%

182

158

589 +18.5%

$145.0 +7.4%

2021 NEW YORK–AREA 338 TOTAL ACCOUNTING -4.0% PROFESSIONALS/ % CHANGE

2021 NEW YORK–AREA AUDITING 142 AND ACCOUNTING PROFESSIONALS

117 2021 NEW YORK–AREA TAX PROFESSIONALS

2021 NEW YORK–AREA 79 MANAGEMENT ADVISORY SERVICES PROFESSIONALS

2021 FIRMWIDE 338 ACCOUNTING -4.0% PROFESSIONALS/ % CHANGE

2020 FIRMWIDE $125.0 REVENUE (IN n/d MILLIONS)/ % CHANGE

Berdon LLP 360 Madison Ave. FIRM/ ADDRESS New York, NY 10017

212-832-0400 berdonllp.com PHONE NUMBER/

Mark Bosswick Stuart Kotler MANAGING PARTNER(S) IN

Grassi EY 488 Manhattan Madison Ave. One West 10022 New York, NY 10001

212-661-6166 212-773-3000 grassicpas.com ey.com

Louis Engert Grassi Herb

326 12,956 +1.6% +8.2%

194 12,956

95 n/d

19 n/d

345 312,000 +7.5% +9.9%

$92.0 $40,000.0 +7.9% +9.9%

Prager Metis CPAs PwC 14 Penn PlazaAve. 300 Madison 10122 New York, NY 10017

212-643-0099 646-471-3000 pragermetis.com pwc.com

StuartSilver Mayer Brad

320 1 12,106 -7.2% +5.5%

89 n/d

145 n/d

n/d

Crowe US KPMG 485 345 Lexington Park Ave. Ave. 10017 New York, NY 10154

212-572-5500 212-758-9700 crowe.com kpmg.com/us

Christopher Oliva Yesenia Scheker Bill Hoving

311 7,963 +16.0% +2.1%

125 1,615

78 n/d

108 n/d

3,964 179,168 +11.3% +3.9%

$1,210.2 $29,220.0 +2.4% -1.8%

Anchin Block & Anchin Deloitte 1375 BroadwayPlaza 30 Rockefeller 10018 New York, NY 10112

212-840-3456 212-492-4000 anchin.com deloitte.com

RussellArrieux Shinsky Roger

250 5,696 0.0% +6.3%

139 5,696

111 n/d

n/d

250 72,418 0.0% -27.0%

$137.0 $23,157.0 +2.2% n/d

Raich Ende Malter & Co. EisnerAmper 1375Third Broadway 733 Ave. 10018 New York, NY 10017

212-944-4433 212-949-8700 rem-co.com eisneramper.com

Ellis Ende Charles Weinstein Neal Kilbane Jr.

232 1,238 +1.3% +3.6%

108 674

122 394

2 170

232 1,853 +1.3% +10.4%

$65.0 $420.1 +3.2% +10.4%

Baker Tilly Marcum 1 Penn Plaza 730 Third Ave. 10119 New York, NY 10017

212-697-6900 212-485-5500 bakertilly.com marcumllp.com

Christine Fenske Jeffrey Weiner

221 1,100 +11.1% +12.8%

91 n/d

79 n/d

51 n/d

3,516 2,000 +1.9% 0.0%

$789.6 $689.1 +4.6% +10.2%

CBIZ USA, and Mayer BDO LLP 3 Hoffman McCann 100 Park CPAs Ave. 5 5 Bryant New York,Park/ NY 10017 1065 Sixth Ave. RSM US NY 10018 New York, 151 W. 42nd St. Withum New York, NY 10036 1411 Broadway Grant Thornton New York, NY 10018 757 Third Ave. Janover New York, NY 10017 100 Quentin Roosevelt Blvd. PKF O'Connor Garden City, NYDavies 11530LLP 245 Park Ave. UHY York, LLP 6NY 10167 New 1185 Sixth Ave. Citrin Cooperman & Co. LLP New York, NY 10036 50 Rockefeller Center Goldstein Lieberman New York, NY 10020 & Co. LLC 1 International Blvd. Mazars LLP Mahwah,USA NJ 07495 135 W. 50th St. Frankel Starr & New York,Loughran NY 10020 Vallone LLP CohnReznick 1475 Franklin Ave. 1301 GardenSixth City,Ave. NY 11530 New York, NY 10019 DDK & Co. LLP Marks 1 Penn Paneth Plaza 685 Ave.10119 New Third York, NY New York, NY 10017 Buchbinder Tunick & Co. LLP Friedman 1 Penn Plaza 1 Liberty New York,Plaza NY 10119 New York, NY 10006

212-790-5700 212-885-8000 cbiz.com bdo.com mhmcpa.com

Jeff GluckDeMong Mathew Demetrios Frangiskatos

165 959 0.0% +10.6%

75 419

35 307

35 220

2,748 71,046 +6.9% +3.7%

$973.0 $9,600.0 +2.0% +6.8%

212-372-1000 rsmus.com 212-751-9100 withum.com 212-599-0100 grantthornton.com 516-542-6300 janoverllc.com 212-286-2600 pkfod.com 212-381-4700 uhy-us.com 212-697-1000 citrincooperman.com 201-512-5700 glcpas.com 212-812-7000 mazars.us 516-874-8800 flsv.com 212-297-0400 cohnreznick.com

Stuart Taub

212-997-0600 212-503-8800 ddkcpas.com markspaneth.com

Richard Klinghoffer Abe AllenSchlisselfeld Dorkin Harry Moehringer

212-695-5003 212-842-7000 buchbinder.com friedmanllp.com

Greg Auteri Frederick Berk Marc Newman Harriet Greenberg

Berdon LLP

212-832-0400

Mark Bosswick

Grassi 488 Madison Ave. New York, NY 10022

212-661-6166 grassicpas.com

Prager Metis CPAs 14 Penn Plaza New York, NY 10122

WEBSITE

NEW YORK–AREA OFFICE

Bill Hagaman

Matthew DiDonato Mark Goodman Kevin Keane

Michael Mahoney Stacy Gilbert

+4.6%

845 +8.2% 149 +0.7% 839 -1.9% 134 -1.5% 725 +11.5% 123 +15.0% 680 +4.6% 104 +8.3% 539 +3.1% 83 +23.9% 518 4 -28.2%

291

293

261

273

n/d

320

140

100

515 1 55,500 -2.5% +16.6%

40,700 +11.5% 1,093 +33.6% 7,286 -0.6% 134 -1.5% 925 +15.6% 839 +25.0% 1,100 +4.8% 104 +8.3% 712 +6.6% 90 +28.6% 2,508 +14.4%

$5,740.0 +6.3% $257.5 +15.3% $1,920.0 -1.5% $35.0 +9.3% $220.0 +10.0% $189.2 +22.0% $315.0 +12.5% n/d n/d $218.0 0.0% n/d n/d $680.0 -1.7%

Show Your Organization’s 61

265

375

287

$137.1 2 $43,032.0 +39.6% +1.5%

HEART 188

n/d

229

199

75 447 +10.3% -0.4%

67 176

43 260

22 10

75 490 +10.3% -3.7%

n/d $143.0 n/d +0.7%

45 385 +9.8% +12.2%

32 182

10 158

0 45

93 589 +20.8% +18.5%

$22.9 $145.0 +2.8% +7.4%

338

142

117

338

$125.0

Louis Grassi

326 +1.6%

194

345 +7.5%

$92.0 +7.9%

212-643-0099 pragermetis.com

Stuart Mayer

320 -7.2%

145

n/d

515 -2.5%

$137.1 +39.6%

Crowe 485 Lexington Ave. New York, NY 10017

212-572-5500 crowe.com

Christopher Oliva Bill Hoving

311 +16.0%

125

108

3,964 +11.3%

$1,210.2 +2.4%

Anchin Block & Anchin 1375 Broadway New York, NY 10018

212-840-3456 anchin.com

Russell Shinsky

250 0.0%

139

111

n/d

250 0.0%

$137.0 +2.2%

Raich Ende Malter & Co. 1375 Broadway New York, NY 10018

212-944-4433 rem-co.com

Ellis Ende Neal Kilbane Jr.

Baker Tilly 1 Penn Plaza New York, NY 10119

212-697-6900 bakertilly.com

Christine Fenske

Phillip Goldstein Robert DeMeola Alan Frankel Seth Starr Alan Wolfson Charles Vallone

New York area includes New York City and Nassau, Suffolk and Westchester counties in New York and Bergen, Essex, Hudson and Union counties in New Jersey. Crain's New York Business uses staff research, extensive surveys and the most current 360 Madison Ave.its lists, but there isberdonllp.com Stuartare Kotler -4.0% -4.0% n/d references available to produce no guarantee that the listings complete. To qualify for this list, firms must have an office in the New York area. n/d-Not disclosed. 1--Crain's estimate, based on other Big 4 average percent York, NYToday. 100173--Acquired MBAF. 4--Office relocation resulted in 361 employees moved from New York area 5--CBIZ and Mayer Hoffman McCann are associated through an alternative-practice structure. 6--UHY is an independent CPA change. 2--FromNew Accounting firm organized under an alternative practice structure with UHY Advisors Inc.

CBIZ and Mayer Hoffman 212-790-5700 McCann CPAs 5 cbiz.com 5 Bryant Park/ mhmcpa.com 1065 Sixth Ave. 14 | CRAIN’S NEW YORK New York, NYBUSINESS 10018 | OCTOBER 4, 2021

Withum 1411 Broadway New York, NY 10018 P012_P015_CN_20211004.indd 14 Janover

212-751-9100 withum.com 516-542-6300

Jeff Gluck

Bill Hagaman

Mark Goodman

Spotlight your philanthropic events232and 232 108 122 2 +1.3% attract donations with Gala Guide+1.3%and 221 Giving 91Tuesday 79 opportunities!! 51 3,516 +11.1% +1.9%

$65.0 +3.2% $789.6 +4.6%

165 Kelly.Maier@crainsnewyork.com 75 35 35 2,748 $973.0 Contact for ad opportunities. 0.0% +6.9% +2.0%

149 +0.7%

1,093 +33.6%

$257.5 +15.3% 9/30/21 4:43 PM

134

n/d

134

$35.0

2 2 2 2 2 21 2 23 24 25 36 7 8 9 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2

RAN

New New refe refe cha cha firm firm

8.0 0%

0.0 7%

3.0 7%

5.0 4%

20 DE 5.0 (IN /d S)/ GE

2.0 0.0 9%

7.1 2.0 2 6% 5%

0.2 0.0 4% 8%

7.0 2% /d

5.0 0.1 2% 4%

9.6 9.1 6% 2%

3.0 0.0 0% 8%

0.0 3% 7.5 3% 0.0 5% 5.0 3% 0.0 0% 9.2 0% 5.0 5% /d /d 8.0 0% /d /d 0.0 7%

/d 3.0 /d 7%

2.9 5.0 8% 4%

5.0 ent /d ent

CPA

2.0 9%

7.1 6%

0.2 4%

7.0 2%

5.0 2%

9.6 6%

3.0 0%

7.5 3%

5.0

20 21 22 23 24 25 1 26 2 27 3 4 28 5 29 6 30 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 RANK

Anchin Anchin Block Block & & Anchin Anchin 1375 1375 Broadway Broadway New New York, York, NY NY 10018 10018

212-840-3456 212-840-3456 anchin.com anchin.com

Russell Russell Shinsky Shinsky

250 250 0.0% 0.0%

139 139

111 111

n/d n/d

250 250 0.0% 0.0%

$137.0 $137.0 +2.2% +2.2%

Raich Raich Ende Ende Malter Malter & & Co. Co. 1375 1375 Broadway Broadway New New York, York, NY NY 10018 10018

212-944-4433 212-944-4433 rem-co.com rem-co.com

Ellis Ellis Ende Ende Neal Neal Kilbane Kilbane Jr. Jr.

232 232 +1.3% +1.3%

108 108

122 122

2 2

232 232 +1.3% +1.3%

$65.0 $65.0 +3.2% +3.2%

Baker Baker Tilly Tilly 1 1 Penn Penn Plaza Plaza New New York, York, NY NY 10119 10119

212-697-6900 212-697-6900 bakertilly.com bakertilly.com

Christine Christine Fenske Fenske

221 221 +11.1% +11.1%

91 91

79 79

51 51

3,516 3,516 +1.9% +1.9%

$789.6 $789.6 +4.6% +4.6%

CBIZ Hoffman CBIZ and and Mayer Mayer Hoffman 5 McCann McCann CPAs CPAs 5 5 5 Bryant Bryant Park/ Park/ 1065 1065 Sixth Sixth Ave. Ave. New New York, York, NY NY 10018 10018

212-790-5700 212-790-5700 cbiz.com cbiz.com mhmcpa.com mhmcpa.com

Jeff Jeff Gluck Gluck

165 165 0.0% 0.0%

75 75

35 35

2,748 2,748 +6.9% +6.9%

$973.0 $973.0 +2.0% +2.0%

Withum Withum 1411 FIRM/ Broadway 1411 Broadway New York, ADDRESS New York, NY NY 10018 10018

212-751-9100 212-751-9100 withum.com PHONE NUMBER/ withum.com

Bill Bill Hagaman Hagaman

2021 NEW YORK–AREA 149 149 TOTAL ACCOUNTING +0.7% PROFESSIONALS/ +0.7% % CHANGE

2021 NEW YORK–AREA 76 76 AUDITING AND ACCOUNTING PROFESSIONALS

53 53 2021

NEW YORK–AREA TAX PROFESSIONALS

2021 NEW YORK–AREA 6 6 MANAGEMENT ADVISORY SERVICES PROFESSIONALS

2021 FIRMWIDE 1,093 1,093 ACCOUNTING +33.6% PROFESSIONALS/ +33.6% % CHANGE

2020 FIRMWIDE $257.5 $257.5 REVENUE (IN +15.3% MILLIONS)/ +15.3% % CHANGE

Janover EY Janover 100 Quentin One Manhattan West Blvd. 100 Quentin Roosevelt Roosevelt Blvd. Garden City, 11530 New York, NYNY 10001 Garden City, NY 11530

516-542-6300 212-773-3000 516-542-6300 janoverllc.com ey.com janoverllc.com

Mark Goodman Herb Engert Mark Goodman

134 12,956 134 -1.5% +8.2% -1.5%

79 12,956 79

55 n/d 55

n/d n/d

134 312,000 134 -1.5% +9.9% -1.5%

$35.0 $40,000.0 $35.0 +9.3% +9.9% +9.3%

6 UHY PwC LLP UHY LLP 6 1185 Sixth 300 Madison Ave. 1185 Sixth Ave. Ave. New 10017 New York, York, NY NY 10036 10036

212-381-4700 646-471-3000 212-381-4700 uhy-us.com pwc.com uhy-us.com

Michael Mahoney Brad Silver Michael Mahoney

123 12,106 123 1 +15.0% +5.5% +15.0%

61 n/d 61

54 n/d 54

1 n/d 1

Goldstein KPMG US Lieberman Goldstein Lieberman & & Co. Co. LLC LLC 1 International Park Ave. Blvd. 1345 International Blvd. Mahwah, New York, NJ NY07495 10154 Mahwah, NJ 07495

201-512-5700 212-758-9700 201-512-5700 glcpas.com kpmg.com/us glcpas.com

Phillip YeseniaGoldstein Scheker Phillip Goldstein

104 7,963 104 +8.3% +2.1% +8.3%

34 1,615 34

50 n/d 50

10 n/d 10

WEBSITE

MANAGING PARTNER(S) IN NEW YORK–AREA OFFICE

839 55,500 839 1 +25.0% +16.6% +25.0% 104 179,168 104 +8.3% +3.9% +8.3%

$189.2 $43,032.0 $189.2 2 +22.0% +1.5% +22.0% n/d $29,220.0 n/d n/d -1.8% n/d

Frankel 516-874-8800 Alan 83 7 76 n/d 90 n/d Deloitte Loughran 212-492-4000 RogerFrankel Arrieux 5,696 5,696 n/d 72,418 $23,157.0 Frankel Loughran Starr Starr & & 516-874-8800 Alan Frankel 83 7 76 n/d 90 n/d Vallone LLP flsv.com Seth +23.9% +28.6% n/d 30 Rockefeller deloitte.com +6.3% -27.0% Vallone LLP Plaza flsv.com Seth Starr Starr +23.9% +28.6% n/d 1475 Franklin Ave. Charles New York, NY 10112 1475 Franklin Ave. Charles Vallone Vallone Garden Garden City, City, NY NY 11530 11530 EisnerAmper 212-949-8700 Charles Weinstein 1,238 674 394 170 1,853 $420.1 DDK & LLP 212-997-0600 Richard 75 67 43 22 75 n/d 733 Third eisneramper.com +3.6% +10.4% +10.4% DDK & Co. Co.Ave. LLP 212-997-0600 Richard Klinghoffer Klinghoffer 75 67 43 22 75 n/d 1 Penn Plaza ddkcpas.com Allen +10.3% +10.3% n/d York, NY 10017 1New Penn Plaza ddkcpas.com Allen Dorkin Dorkin +10.3% +10.3% n/d New New York, York, NY NY 10119 10119 Marcum 212-485-5500 Jeffrey Weiner 1,100 n/d n/d n/d 2,000 $689.1 Buchbinder Tunick 212-695-5003 Greg 45 32 10 0 93 $22.9 730 Third Ave. marcumllp.com +12.8% 0.0% +10.2% Buchbinder Tunick & & Co. Co. LLP LLP 212-695-5003 Greg Auteri Auteri 45 32 10 0 93 $22.9 1 Penn Plaza buchbinder.com Marc +9.8% +20.8% +2.8% York, NY 10017 1New Penn Plaza buchbinder.com Marc Newman Newman +9.8% +20.8% +2.8% New New York, York, NY NY 10119 10119 BDO USA, LLP 3 212-885-8000 Mathew DeMong 959 419 307 220 71,046 $9,600.0 100 Park Ave. bdo.com Demetrios Frangiskatos +10.6% +3.7% +6.8% New York,New NY 10017 New York New York York area area includes includes New York City City and and Nassau, Nassau, Suffolk Suffolk and and Westchester Westchester counties counties in in New New York York and and Bergen, Bergen, Essex, Essex, Hudson Hudson and and Union Union counties counties in in New New Jersey. Jersey. Crain's Crain's New New York York Business Business uses uses staff staff research, research, extensive extensive surveys surveys and and the the most most current current

references references available available to to produce produce its its lists, lists, but but there there is is no no guarantee guarantee that that the the listings listings are are complete. complete. To To qualify qualify for for this this list, list, firms firms must must have have an an office office in in the the New New York York area. area. n/d-Not n/d-Not disclosed. disclosed. 1Crain's estimate, estimate, based based on on other other Big Big 4 4 average average percent percent 1---Crain's change. Accounting Today. in employees area structure. CPA 46US 291 McCann 293 through 261 40,700 $5,740.0 change. 2FromRSM Accounting Today. 3Acquired MBAF. MBAF.212-372-1000 Office relocation relocation resulted resultedStuart in 361 361Taub employees moved moved from from New New York York 845 area 5CBIZ and and Mayer Mayer Hoffman Hoffman McCann are are associated associated through an an alternative-practice alternative-practice structure. UHY is is an an independent independent CPA 2---From 3---Acquired 4---Office 5---CBIZ 6---UHY firm organized under an alternative practice structure with UHY Advisors Inc. W.an 42nd St. rsmus.com +8.2% +11.5% +6.3% firm organized151 under alternative practice structure with UHY Advisors Inc.

New York, NY 10036

WANT MORE OF CRAIN’S EXCLUSIVE DATA? VISIT CRAINSNEWYORK.COM/LISTS Matthew DiDonato 839 273 n/d n/d

Grant Thornton 757 Third Ave. New York, NY 10017

212-599-0100 grantthornton.com

PKF O'Connor Davies LLP 245 Park Ave. New York, NY 10167

212-286-2600 pkfod.com

Kevin Keane

725 +11.5%

320

140

Citrin Cooperman & Co. LLP 50 Rockefeller Center New York, NY 10020

212-697-1000 citrincooperman.com

Stacy Gilbert

680 +4.6%

265

Mazars USA LLP 135 W. 50th St. New York, NY 10020

212-812-7000 mazars.us

Robert DeMeola

539 +3.1%

CohnReznick 1301 Sixth Ave. New York, NY 10019

212-297-0400 cohnreznick.com

Alan Wolfson

Marks Paneth 685 Third Ave. New York, NY 10017

212-503-8800 markspaneth.com

Friedman 1 Liberty Plaza New York, NY 10006

7,286 -0.6%

$1,920.0 -1.5%

100

925 +15.6%

$220.0 +10.0%

375

1,100 +4.8%

$315.0 +12.5%

287

188

712 +6.6%

$218.0 0.0%

518 4 -28.2%

229

199

2,508 +14.4%

$680.0 -1.7%

Abe Schlisselfeld Harry Moehringer

447 -0.4%

176

260

490 -3.7%

$143.0 +0.7%

212-842-7000 friedmanllp.com

Frederick Berk Harriet Greenberg

385 +12.2%

182

158

589 +18.5%

$145.0 +7.4%

Berdon LLP 360 Madison Ave. New York, NY 10017

212-832-0400 berdonllp.com

Mark Bosswick Stuart Kotler

338 -4.0%

142

117

338 -4.0%

$125.0 n/d

Grassi 488 Madison Ave. New York, NY 10022

212-661-6166 grassicpas.com

Louis Grassi

326 +1.6%

194

345 +7.5%

$92.0 +7.9%

Prager Metis CPAs 14 Penn Plaza New York, NY 10122

212-643-0099 pragermetis.com

Stuart Mayer

320 -7.2%

145

n/d

515 -2.5%

$137.1 +39.6%

Crowe 485 Lexington Ave. New York, NY 10017

212-572-5500 crowe.com

Christopher Oliva Bill Hoving

311 +16.0%

125

108

3,964 +11.3%

$1,210.2 +2.4%

Anchin Block & Anchin 1375 Broadway New York, NY 10018

212-840-3456 anchin.com

Russell Shinsky

250 0.0%

139

111

n/d

250 0.0%

$137.0 +2.2%

Raich Ende Malter & Co. 1375 Broadway New York, NY 10018

212-944-4433 rem-co.com

Ellis Ende Neal Kilbane Jr.

232 +1.3%

108

122

232 +1.3%

$65.0 +3.2%

Baker Tilly 1 Penn Plaza New York, NY 10119

212-697-6900 bakertilly.com

Christine Fenske

221 +11.1%

3,516 +1.9%

$789.6 +4.6%

CBIZ and Mayer Hoffman McCann CPAs 5 5 Bryant Park/ 1065 Sixth Ave. New York, NY 10018

212-790-5700 cbiz.com mhmcpa.com

Jeff Gluck

165 0.0%

2,748 +6.9%

$973.0 +2.0%

Withum 1411 Broadway New York, NY 10018 P012_P015_CN_20211004.indd 15 Janover

-1.9%

October 4, 2021 | CRAIN’S NEW YORK BUSINESS | 15

212-751-9100 withum.com

Bill Hagaman

149 +0.7%

1,093 +33.6%

$257.5 +15.3% 9/30/21 3:50 PM

516-542-6300

Mark Goodman

134

n/d

134

$35.0

Advertising Section

PEOPLE ON THE MOVE

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

CONSTRUCTION MANAGEMENT

FINANCIAL SERVICES

REAL ESTATE

Shawmut Design and Construction

SVB Leerink

Silverstein Properties

SVB Leerink, a leading investment bank specializing in healthcare and life sciences, announced that Roger Salazar, Jr. will join the firm’s investment banking practice leading origination and execution for special purpose acquisition companies. Mr. Salazar joins SVB Leerink as a Managing Director reporting to Vice Chairman and Global Co-Head of Investment Banking, Dr. Dan Dubin. He will be based in the New York office.

Keith A. Cody joins Silverstein Properties as Senior Vice President of Commercial Leasing. With over 25 years of successful transactions in leasing office and retail properties throughout Manhattan and the greater metropolitan area, Keith will support commercial leasing efforts in New York City and beyond. Keith joins Silverstein Properties from Empire State Realty Trust (ESRT) where he was Vice President of Leasing for seven years. Prior to ESRT, he served as a Senior Vice President at CBRE.

Shawmut, a $1.5 billion construction management firm, and Chairman of the Board James Down appointed Liyuan Woo, CFO at The Beauty Health Company, to its board of directors. Liyuan will leverage finance and operational scaling expertise to accelerate nationwide growth and guide the company in its mission to provide an exceptional construction experience. Her experience with growth-oriented global brands will be incredibly valuable as Shawmut continues to execute an aggressive growth strategy.

REAL ESTATE LAW

CONSULTING ENGINEERING

Jaros, Baum & Bolles Stephen Keppler has joined Jaros, Baum & Bolles as the new Director of Infrastructure. Keppler brings more than 30 years of experience in programmatic, technical and financial project development and will play a critical role in expanding and refining JB&B’s infrastructure practice. He has served as the LEED Program Director with the USGBC and as Senior Consultant with ICF to the EPA, as well as owned a sustainability, energy modeling and commissioning consulting firm.

FINANCIAL SERVICES

KeyBank Michael Rieger, CFP® joins Key Private Bank, a leading wealth manager with $47 billion in AUM, as SVP and Market Leader for Metropolitan NY. He leads a team that provides financial planning, investment, trust and banking solutions for individuals, families, and institutions. He joins from BNY Mellon, bringing 20 years of wealth and investment management experience. He is based in New York City, reporting to Thomas Scaturro, Regional Executive for Eastern Markets and Florida Market President.

INDUSTRY ACHIEVERS ADVANCING THEIR CAREERS Recognize them in Crain’s

Silverstein Properties

Abrams, Fensterman, Fensterman, Eisman, Formato, Ferrara, Wolf & Carone, LLP Michael Bass and Richard Thomas joined Abrams Fensterman as Partners and members of the Bass Health Law practice group in the firm’s newly opened Albany office. Prior to joining Abrams Fensterman, Mr. Bass and Mr. Thomas worked within the New York State Thomas Department of Health. During their tenure, they each advised on pressing matters relating to the COVID-19 pandemic. Mr. Bass served as Acting General Counsel and led the Department of Health’s Division of Legal Affairs. Mr. Thomas served as Deputy Director of the Bureau of Program Counsel providing advice and counsel to almost all programs within the Department of Health.

Yael Ron joins Silverstein Properties as Head of Global Hospitality & General Manager of Residential Properties. With over 25 years of luxury hospitality experience, Yael will be responsible for overseeing Silverstein’s hospitality and residential divisions. She will also oversee Inspire, Silverstein’s holistic customer experience program. Yael previously served as Managing Director of the Fifth Avenue Hotel in New York and as General Manager of The RitzCarlton in San Francisco.

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CRAINSNEWYORK.COM I SEPTEMBER 28, 2020 I

Few qualities are more vital to the health of any business than financial experts in tax regulation, audit, estate administration, forensic accounting, organizational transformation, advisory services, fundraising and business equilibrium and organizational efficiency. Rarely has the value of both been more strongly felt than in recent structure. They represent an extraordinary group of professionals from months. From stress-tested balance sheets to fast-changing regulations, firms of varying size and renown. CRAINSNEWYORK.COM I SEPTEMBER 28, 2020 I To find these honorees, Crain’s consulted with trusted sources in the and reconfigured supply chains to “new normal” working arrangements, business world in general and in the accounting and consulting realms in the Covid-19 pandemic has challenged even the strongest of businesses. Standing tall within this chaotic breach are the foot soldiers of profes- particular. The nominations submitted by individuals and firms in the New Few qualities are more vital to the health of any business than financial experts in tax regulation, audit, estate administration, forensic accounting, York metropolitan area were rigorously vetted. Ultimately, each of the acsional service firms, led by accountants and management consultants. organizational transformation, advisory services, fundraising and business equilibrium and organizational efficiency. In selecting the 86 honorees for this year’s list of Notable Women in counting and consulting notables was chosen for her career achievements Rarely has the value of both been more strongly felt than in recent structure. They represent an extraordinary group of professionals from Accounting and Consulting, Crain’s sought to spotlight the accomplished and involvement in industry and community organizations—and at times and renown. months. From stress-tested balance sheets to fast-changing regulations, firms of varyingI size 28, 2020 I to help New York rebound SEPTEMBER from the coronavirus. metropolitan area professionals and problem-solvers who keep business- her effortsCRAINSNEWYORK.COM To find these honorees, Crain’s consulted with trusted sources in the and reconfigured supply chains to “new normal” working arrangements, Read their biographies and learn how the members of this remarkable es churning. The talented individuals presented here are a diverse group, business world in general and in the accounting and consulting realms in the Covid-19 pandemic has challenged even the strongest of businesses. skilled at resourceful innovation and disruptive thinking. These women are cohort keep the gears of business whirling. The nominations by individuals andadministration, firms in the New Standing tall within this chaoticare breach soldiersofofany profesexperts insubmitted tax regulation, audit, estate forensic accounting, Few qualities moreare vitalthetofoot the health businessparticular. than financial York metropolitan organizational area were rigorously vetted. Ultimately, each of the acsional service firms, led by accountants and management transformation, advisory services, fundraising and business equilibrium and organizational efficiency.consultants. counting and consulting notables chosenan forextraordinary her career achievements In selecting the 86 honorees for this list been of Notable structure. They was represent group of professionals from Rarely has the valueyear’s of both more Women stronglyinfelt than in recent andregulations, involvement infirms industry and community organizations—and at times Accounting and Consulting, Crain’s sought to spotlight the accomplished of varying size and renown. months. From stress-tested balance sheets to fast-changing efforts to help New from theCrain’s coronavirus. metropolitan area and professionals andsupply problem-solvers businessTo York find rebound these honorees, consulted with trusted sources in the reconfigured chains to who “newkeep normal” working her arrangements, Read their biographies learn how theand members this remarkable es churning. The talented individuals presented here are aeven diverse group, of businesses. businessand world in general in the of accounting and consulting realms in the Covid-19 pandemic has challenged the strongest cohort the gears of business whirling. submitted by individuals and firms in the New skilled at resourcefulStanding innovation disruptive thinking. Theseare women aresoldiers particular. The nominations talland within this chaotic breach the foot of keep professional service firms, led by accountants and management consultants. In selecting the 86 honorees for this year’s list of Notable Women in Accounting and Consulting, Crain’s sought to spotlight the accomplished metropolitan area professionals and problem-solvers who keep businesses churning. The talented individuals presented here are a diverse group,

LAURA PETERSONskilled at resourceful innovation and disruptive thinking. These women are

York metropolitan area were rigorously vetted. Ultimately, each of the accounting and consulting notables was chosen for her career achievements and involvement in industry and community organizations—and at times her efforts to help New York rebound from the coronavirus. Read their biographies and learn how the members of this remarkable cohort keep the gears of business whirling.

Managing Director and Communications, Media and Technology Northeast Business Leader Accenture

LAURA PETERSON

Laura Peterson’s résumé lists a whopping 10 positions she’s held at the multinational professional services company Managing Director and Communications, Media and Technology Northeast Business Leader Accenture since joining the firm in 2000. In her current role as Accenture the Northeast business lead for communications, media and technology, the enterprising ladder climber presides over a team Laura Peterson’s résumé lists a whopping 10 positions she’s of 3,000 professionals. Peterson is charged with managing a $750 held at the multinational professional services company and Media and Technology Northeast Business Leader million profit-and-lossManaging statementDirector for clients inCommunications, the Accenture since joining the firm in 2000. In her current role as aforementioned sectors as well as the high tech sector. Peterson Accenture the Northeast business lead for communications, media and works with key business leaders among more than 40 clients and technology, the enterprising ladder climber presides over a team Laura Peterson’sstructure. résumé lists a whopping within Accenture’s global management Since 2017, she 10 positions she’s of 3,000 professionals. Peterson is charged with managing a $750 held the multinational professional company has been a board adviser to at Fairygodboss, an online platformservices that million profit-and-loss statement for clients in the since joining the firm in 2000. In her current role as seeks to elevate womenAccenture in the workplace. aforementioned sectors as well as the high tech sector. Peterson the Northeast business lead for communications, media and works with key business leaders among more than 40 clients and technology, the enterprising ladder climber presides over a team Reprinted with permission from Crain’s New York Business. © 2020 Crain Communications Inc. All rights reserved. Further duplication without permission is prohibited. #NB20073 Since 2017, she within Accenture’s global management structure. of 3,000 professionals. Peterson is charged with managing a $750 has been a board adviser to Fairygodboss, an online platform that nt fo nt ffor or client cclients clliients ttss in in the tth h he e million profit-and-loss statement seeks to elevate women in the workplace. entioned sectors as well as as the th he high gh tech sector. Peterson Peterson aforementioned am a mo mo on ng m more re e tth tha than ha h han an a n4 40 0 cl clients cli li t a nd nd works with key business leaderss amo among and Reprinted with permission from Crain’s New York Business. © 2020 Crain Communications Inc. All rights reserved. global gem em ent structure. struct cttu ure. rre e Since e. Siince ince ce 20 ce 2017 2 2017, 201 017 7,, she 7 she sh h within Accenture’s management Further manag duplication without permission is prohibited. #NB20073 n a board adviser to Fairygodboss, Fairr yyg god g go o od dboss, an online on onl nlline ine e platform p pla latf latfo tth hat has been that work orkp place. seeks to elevate women in the workplace.

LAURA PETERSON

Reprinted with permission permissi ssion from f m Crain’s rain’s New York Business. Busi Bu in ness ess.. © 2020 Crain Communications Communications Inc. All rights Co hts reserved. reserved. Furth her duplication without without permission with permission is prohibited. prohibited. ##NB20073 Further

CRAINSNEWYORK.COM I OCTOBER 26, 2020 I

ASKED & ANSWERED

PAT WANG Healthfirst

INTERVIEW BY JENNIFER HENDERSON

at Wang, president and CEO of Healthfirst, a nonprofit insurer formed by a group of health care systems, had been working to advance value-based care long before the pandemic. The concept involves paying hospitals and physicians based on their patients’ outcomes rather than on the volume of services they provide. Now, as health care providers face unprecedented financial strain due to the Covid-19 crisis, Wang says such payment arrangements are more critical than ever. Not only do they improve the quality of care for patients—including the 1.5 million plan members Healthfirst serves throughout the city, Long Island and surrounding areas—but they also generate fiscal benefit for the facilities, practices and health centers that serve them. How does Healthfirst contribute to value-based care? What you understand as profit in another health insurance company’s balance sheet at Healthfirst is contractually-driven surplus that goes back to the delivery system. Eighty percent of the premiums we get for medical services flows through value-based payment arrangements, which means that providers benefit when there is a surplus in the premium. If less money is spent on fee-for-service claims, the surplus is part of the contractually-obligated payment stream. What has that meant during the pandemic? For April through June, we are distributing $250 million in those surpluses [about double that of the same period last year], and we’ve expedited the calculation and reconciliation of those amounts to get them out the door faster because the delivery system really needs it. Why are value-based payments vital now and in normal times? In the best of times, we have always been trying to push for this model because it aligns the incentives around trying to keep people healthy and avoiding unnecessary care. The providers are aligned with that goal because they benefit from it if they can reduce avoidable care. Consider Covid-19 to be like a war. In war times, the model has been a lifesaver because there is this artificial depression of utilization, and that’s why the providers have lost so much money—their revenue has dried up. But because we have these risk contracts, the surplus that is there, that’s what has gone out the door to them.

DOSSIER WHO SHE IS President and CEO, Healthfirst AGE 66 BORN Jersey City RESIDES Manhattan EDUCATION Bachelor’s in history and East Asian studies, Princeton University; J.D., New York University School of Law FAMILY MATTERS Wang is married and has one son who lives in Brooklyn. GLOBAL TIES She has lived in Croatia, Taiwan as well as China, where she had more than 20 first cousins. FLARE FOR FOOD Wang has become reacquainted with the joy of cooking as a result of the pandemic. EYE ON MEDICAID About three-quarters of Healthfirst’s members are Medicaid beneficiaries. The insurer’s initial response to the crisis included having its care managers make sure members had medicine and durable medical equipment to stay at home safely. BUDGET CUTS Wang says the magnitude of the state’s Medicaid cuts—instituted to pare back on spending growth—is devastating. “Cuts to us as a Medicaid plan are cuts to hospitals.”

What happens when patients again begin seeking services? We do see utilization coming back, and we have been encouraging our members to get needed care because people have put a lot of stuff off. We have to see whether the bounce back is gigantic or it just brings things back to a steady state. If we go back to a more normal utilization pattern, then the regular incentives of trying to align around good preventive care and avoiding unnecessary care, they just kick in. How can the city safely bounce back from the pandemic? Continue doubling down on the public health measures already in place: wearing masks, social distancing and hand sanitation. We know what to do. But I think a singular focus on getting the schools open for full learning should top the list of what we are aiming for. We should measure our success against that goal. As an employer, I can tell you that we will not be able to get fully back to work until the thousands of employees with school-age children can g get their kids back into school. It’s of course better for all children and particularlyy critical for poorer children. The city’s economic recovery is going to hinge on how quickly and how well we can get that done so that parents can resume their normal lives too. As a longtime resident of the city who has watched us recover from recession, Hurricane rece re reces ecession e cession, ssi ssion, s sion, ion, 9/11 /11 1 and a an nd n d Hurr icane Sandy, I believe in the city’s ability to bounce back against the odds. But this off us, and we should be sober about the need for everyone to contribute to the solution. time e is going ng test te t all all o al What challenges es fface ace the broader insurance industry? needs Balancing ncing g the tth he h e need ds and expectations of consumers who need and deserve good health care coverage, expandds ing g access s however howeve o er we er we can can and doing it within an increasingly constrained economic environment. This is Medicaid, especially ttrue rue with th hM edicaid, where the state’s budget situation is dire at the same time as people’s needs increasing. impact of the state’s are increasin ng. Given Giv iven ve ven ve en n that th that at Healthfirst has over 1 million Medicaid members, m member emb embers, s, the potential p p state s especially budget is se es sp s pe p e ecial a lyy con cconcerning. oncerning. cerning For me, me our priority priority has to be enabling enabl enab bling b blin ling in ng n g as many people as possible po ble to have full possi access to high-quality hig gh-qua g h - alitttyy ccare, h-qua are, and it’s going to be are be a challenge to figure ure e out ou ut how to do that in this this economic environneed of the provider delivery system. ment. Insurers Insurre errs also al n eed to be mindful of the hurt being experienced nced d by by so o much m strong Balancing The value of of our ourr products p prod pro ro od ducts relies on having g stron g doctors, hospitals als and an nd d commun community co communi om om resources. Ba lancing all of financially this in a finan ncially allyy viable al vvia iable way is going to be a challenge. h ll ■ Reprinted with permission ission sssiion io on ffrom on rom ro rom om Crains Crain’s rai rains aiins ains in n’s ns’s New ew w York Yo Y k Busin Bu Bus Business Busi B Business. usin in ne . © 22020 20020 0022200 Cra C Crain Crrraaain in n Communicatio Communications ns Inc. All rights reserved. reserveed. without Furthe Further rther ther th herr duplication her d du duplicati dupl uplication pl caaation attion tiion ion n withou w wit witho with ithout out permission ermission rmission missi m mission i io ission ion on is is prohibited. pro proh pr prroh #NB20080

InMobi has appointed Joe Esposito to lead its newly formed Agency Partnerships team, and deepen the company’s relationships with top agencies across the North American region. Esposito brings nearly 20 years of diversified digital marketing experience, including more than 10 years in various agency roles within WPP and Havas. Prior to joining InMobi, Esposito led agency partnerships at both Criteo and Rio SEO.

For listing opportunities, contact Debora Stein at dstein@crain.com or submit directly to

CRAINSNEWYORK.COM/PEOPLEMOVES

For more information contact: Lauren Melesio, Director, Reprints & Licensing lmelesio@crain.com • (212) 210-0707

16 | CRAIN’S NEW YORK BUSINESS | OCTOBER 4, 2021

P016_CN_20211004.indd 16

9/30/21 3:24 PM

TECHNOLOGY

City partners with Brooklyn Navy Yard’s Newlab to test next frontier in storing clean energy

he city’s annual Climate Week, which wrapped up Sept. 24, featured energy promises from elected officials. Among the touted initiatives were a pair of new transmission lines to deliver upstate clean energy into the five boroughs, a $200 million plan for wind-energy development and a program to convert homes to solar energy. What will be needed for each of those plans—and the overarching New York goal of going fully renewable in the next 30 years—is the ability to store the power produced by wind and solar for times when clean-energy production and demand from the grid don’t align. To that end, the city’s Economic Development Corp. and Newlab at the Brooklyn Navy Yard last Monday launched the Resilient Energy Studio, focused on providing public and private resources to boost energy-storage startups. “The city has made big moves in the past year to invest in off-shore wind energy,” said Shaina Horowitz,

Companies would be given access to city resources to test the concepts through the studio, with a focus on delivering to environmental justice communities—ones with a majority of low-income residents and people of color that have experienced a disproportionate share of poor environmental outcomes, as defined by the city climate office.

Urban tech hubs The privately run Newlab is a membership-based workspace for “frontier” technology startups, headquartered out of the Brooklyn Navy Yard, an 84,000-square-foot space where U.S. Navy ships were built for World Wars I and II. The city in 2016 invested $7.2 million to launch urban technology hubs to support young companies at Newlab and Grand Central Tech, now called Company. The Resilient Energy Studio is the latest offshoot of the urban tech hub concept. Accepted companies get access to Newlab’s workspace, as well as to public resources for technology pilots that otherwise could be difficult for early-stage companies to secure. A 2020 studio collaboration between the city and Newlab—Circular City—included a company, Aclima, that deployed sensors throughout Brooklyn tracking air-quality block by block. Studios at Newlab’s Brooklyn space include a partnership with

“THE CITY HAS MADE BIG MOVES TO INVEST IN OFFSHORE WIND ENERGY” Newlab’s vice president of products and programs. “So if you are thinking at the moonshot level, how do you connect offshore wind-development investments into storage capacity for neighborhoods?”

BUCK ENNIS

BY RYAN DEFFENBAUGH

NEWLAB is a membership-based “frontier tech” workspace at the 84,000-square-foot Navy Yard. Verizon for companies developing technologies based on 5G connectivity. It included several robotics companies in its first cohort. There is also a “return to work” studio focused on ways to safely operate in-person businesses, including a collaboration with Strongarm Technologies. Strongarm developed a sensor that reminds workers in industrial settings to keep 6 feet apart and that tracks interactions for contact tracing.

New software Beyond just potential battery technology, Newlab said it hopes the Resilient Energy Studio attracts new types of software and business models for energy storage and distribution. Horowitz cited Fermata Energy, a company that is part of Newlab’s 5G studio, as one example. Fermata has designed a bidirectional electric vehicle charger, allowing a car to discharge the extra energy in its battery back into the

grid for payment. Applications are open now. Horowitz said interested startups should have a product ready to be piloted. Newlab and the EDC are in discussions about potential locations for energy-storage pilot programs. The organizations are accepting applications for a founder fellowship, which offers an eightto 12-month membership to startup leaders who are from groups underrepresented in the technology industry. ■

REAL ESTATE

BY NATALIE SACHMECHI

turf war is erupting between the largest department store in Manhattan and the world’s largest retailer over the rights to advertise on a Herald Square billboard, according to a lawsuit filed recently in state Supreme Court in Manhattan. Macy’s is going after its landlord,

The e-commerce giant raised eyebrows in August amid reports that it would open its own department stores in cities across the country. Critics saw the move as a blow to existing retail businesses. Macy’s plans to stop Amazon in its tracks with an injunction to protect its business, which includes online sales. “The damages to Macy’s customer goodwill, image, and reputation brand should a prominent online retailer (especially Amazon) advertise on the billboard are impossible to calculate,” the company said in court papers.

“THE DAMAGES TO MACY’S CUSTOMER GOODWILL ARE IMPOSSIBLE TO CALCULATE” Kaufman Realty, to block a possible deal with Amazon to use the billboard atop its Herald Square flagship store, claiming that ads from its competitor would cause “immeasurable” harm to its business, the complaint said.

Barred forever The storied retailer had been advertising its own business on the billboard for more than 50 years, but

when its lease was to expire in August, it failed to come to an agreement with its landlord, which was already in talks to lease the space to Amazon, the complaint said. But in its original deal from 1963, Macy’s included a restriction that barred any retailer from advertising on the billboard forever. The landlord called that provision invalid, the company said in court papers. “Macy’s continues to have rights relating to advertisements at that location,” company spokesman Orlando Veras said. “We expect to realize the benefits of these rights and have asked the court to protect them.” Representatives for Amazon and the Kaufman Organization did not immediately respond to requests for comment. Following the Covid-19 pandemic’s devastating effect on the city’s retail industry and years of declining sales in brick-and-mortar

BUCK ENNIS

Macy’s fights to block Amazon from advertising on billboard atop Herald Square flagship

stores, the city’s surviving shops are on shaky ground. The Neiman Marcus outpost that opened at Hudson Yards closed a few months into the pandemic. But Macy’s recently un-

veiled plans to build an office tower above its Herald Square store and announced that it would spend $235 million to revitalize the surrounding neighborhood. ■

October 4, 2021 | CRAIN’S NEW YORK BUSINESS | 17

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FAMILY FROM PAGE 1

challenges for those who are next in line. Even in a romanticized business easily learned and understood by many, much of the power in the city rests at the top of a handful of family dynasties. Crain’s spoke with the next generation of leaders at companies that are among the city’s largest family-owned firms and together control more than 50 million square feet of real estate. The Durst Organization and Rudin Management are in their fourth generations as family-run businesses, while Kushner Cos. and Tishman Speyer are led by the second generation. Board members at these firms count as co-workers their children, grandchildren, cousins and even former in-laws.

ANITA DURST avoided the family business but wants her son to join up.

BUCK ENNIS

“The chances of a family business getting to a second generation, then to a third and a fourth is rare,” said Michael Rudin, 36, of Rudin Management, which owns 15 million square feet of commercial and residential real estate in the city. “We look at ourselves as custodians of the legacy.” With a net worth once reported by Forbes to be about $5 billion, the Rudin family’s secret to thriving in real estate for four generations is responding when duty calls. Michael’s grandfather and family patriarch Lew Rudin died of cancer just nine days after the attacks on Sept. 11, 2001, while Michael was still in high school and spent his summers as a camp counselor. That’s when his mom suggested he go to work with his dad, Bill, to learn more about the business. “It was a way for my father and I to bond and cope,” he said. “It really solidified my desire to get into the business.” Before joining, during his college years, he interned at Cushman & Wakefield and Blackstone. But real estate was always part of his and sister Samantha’s childhood. “It had this sort of presence whether you’re discussing it or not,” he said. Their family lived in buildings that the company owned, and the company’s offices were in their own buildings too. When the company’s building at 3 Times Square was complete, Samantha and Michael Rudin got to skip school for the day to attend the groundbreaking. The firm is co-chaired now by cousins Bill and Eric Rudin. Bill’s sister Beth and their cousin Madeleine also serve on the board. Michael and Samantha are the only two of their generation involved in the business full time. Although there are currently no discussions about who will lead the company in the future, it’s likely that Michael and Samantha will take the

BUCK ENNIS

Duty bound

helm together, he said.

To join or not to join? Joining the family business was not the obvious choice for some of the city’s real estate heirs. Samantha Rudin had plans to make it big as an actress and was focused on taking acting classes in college. She had studied at New York University’s Tisch School of the Arts and mostly did plays. In her family, there was never any pressure or expectation that the kids would also follow in their parents’ footsteps, she said.

bit longer. She had worked as the director of creative services at Ralph Lauren, designing its retail experiences for a decade before she took on a leading role at Kushner Cos. in 2015. “My father has always encouraged us to work hard and be extraordinary, not ordinary,” she said. “There’s just this expectation that you need to be a productive member of society.” That included spending many moments of her childhood going to see properties and attending meetings with her father, Charles Kushner, the company’s founder. Eventually, she felt it was time for her to ditch the fashion industry and join her father and siblings in the family business. Currently, Nicole is the only one of her siblings with a full-time role at the firm, which has 3 million square feet of space in the city. Her brother Jared Kushner became heavily involved in the business in 2005, when their father was sentenced to two years in prison for illegal campaign contributions, tax evasion and witness tampering. In 2008 Jared assumed the role of

“IT’S IMPORTANT FOR OUR CHILDREN TO UNDERSTAND WHAT WE’RE BUILDING” “But with the auditions, I didn’t have thick-enough skin,” she said. She got frustrated, took a year off to figure things out, and her mother, again, suggested that she join Rudin Management in the meantime. Once she became an employee in 2007, she never looked back. Nicole Kushner’s foray into her family’s real estate company took a

CEO, then launched his own real estate investing platform, Cadre, with brother Joshua in 2014. Since 2016 he’s served as an adviser to his fatherin-law and fellow New York real estate scion, former President Donald Trump. Last month Jared announced he would be leaving politics to start an investment firm in Florida. Their older sister, Dara, has no involvement in the company. Nicole Kushner is married to hedge fund manager Joseph Meyer, who is chairman of Observer Media. Though it’s not a requirement for their children to follow in her footsteps, Nicole makes sure they’re exposed to her work—buying and erecting apartment buildings and the occasional commercial property along the East Coast. “[My husband and I] both dedicate a lot of our time to our work, and it’s important for our children to understand what we’re building and why we’re building it,” she said.

Keeping it in the family Family-owned businesses, especially in the real estate industry, are designed to be held for a long period of time and built up over several generations, said Justin Zale, an executive search expert at consulting firm Egon Zehnder. They focus on long-term growth rather than having an exit strategy for every property they own, allowing their holdings to appreciate in value without having to pay enormous transfer taxes. And though it’s most common for successors to be in the family, that’s not always the best option, he said.

“The businesses score family and non-family candidates to see whether they’re a good fit,” he said. When it comes to picking their next leader, the most challenging part for him is managing the internal family dynamics. “As the business migrates through generations, the generations are not as tightly knit as perhaps the founding group was,” he said. “This one’s wife doesn’t get along with this person or someone got slighted at a family barbecue 10 years ago.” But to manage real estate, the skill profile doesn’t have to be so robust, he said. “You don’t necessarily need a Harvard MBA to manage an office building.” Rob Speyer of Tishman Speyer does have an Ivy League degree, from Columbia University. He became a reporter for the Daily News before joining the real estate development firm his father, Jerry Speyer, founded with his ex-father-in-law, Robert Tishman. In the ’90s, his investigative chops helped Rob Speyer track OJ Simpson at a private golf club and landed him an interview with the suspected killer. Jerry Speyer began working with Tishman after marrying his daughter. The business was a publicly traded company called Tishman Realty. It was difficult for Speyer to choose not to work for his own father, who owned a chain of shoe stores. But he chose real estate and never looked back. “I knew when I worked there that if I did a good job, I could run the company at some point—which was my goal,” Speyer told Crain’s last year. Ten years later, he became its president. At 37, he and Tishman liquidated

THE AMOUNT OF NEW YORK CITY REAL ESTATE OWNED BY EACH FAMILY

16 Million SQUARE FEET Durst Organization

3 Million SQUARE FEET Kushner Cos.

15 Million SQUARE FEET Rudin Management

20 Million SQUARE FEET Tishman Speyer

18 | CRAIN’S NEW YORK BUSINESS | OCTOBER 4, 2021

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ROB SPEYER

not part of the executive team. They have a younger sister, Holly, and a half sister, Laura, who do not work for the family.

reer while her sister, Helena, and brother, Alexander, made their way into the company’s executive suite. “My parents think of my teenage years as complicated and a time where we did not get along very well,” Anita said. After she got her GED, she eventually moved in with her grandfather, Seymour Durst, at his townhouse, called Old York Library, until his death. She spent 11 years of her life sleeping in the Fiction Room. Today she lives in Brooklyn and runs Chashama, a nonprofit that curates affordable or free studio and gallery space for artists in the city— including some Durst-owned space. Joining her family at their real estate empire is out of the question for her, but she’s got different plans for her teenage son. She’s keen on him interning there next summer. “I want him to start all the way at

Odd one out MICHAEL AND SAMANTHA RUDIN are likely to take the helm eventually at Rudin Management.

the business to start the private development firm Tishman Speyer, which now owns more than 20 million square feet of real estate in the city, including Rockefeller Center. Just three years after graduating from college, his son Rob joined the firm. In 2008, Rob became its presi-

dent and co-CEO, and in 2015 his father passed the torch to him. He now serves as its president and sole chief executive. His older sister, Valerie Peltier, joined the firm the same year he did and is a managing director on the development team, though she is

NEWSCOM

GETTY IMAGES

NICOLE KUSHNER

Although an eponymous business can bring family members together, it’s caused quite a bit of trouble at the Durst Organization. With a rebellious daughter and a brother convicted of murder, Chief Executive Douglas Durst is no stranger to family tension. Anita Durst, his eldest child, always did things a little differently than her straight-laced siblings. When it came to joining the Durst Organization and carrying on her family’s legacy, it was no different. She dropped out of high school in the ninth grade, ran away from home and stayed far away from the business by pursuing an acting ca-

the bottom, cleaning the building with the cleaning crew,” she said. The Durst Organization, also in its fourth generation, was founded in 1915 by Joseph Durst, an immigrant tailor from Hungary. More than 100 years later, the company owns 16 million square feet of real estate and has an executive team composed almost entirely of family members, including Joseph’s grandsons Douglas Durst, who serves as the chief executive, and Jonathan “Jody” Durst, who is president, as well as Jody’s brother Kristoffer and Douglas’ children Alexander and Helena Durst. The family members working in the business declined to be interviewed for this story, but there is an expectation that the next person to take over the firm once Douglas and Jody step back also will be a Durst, revealed company spokesman Jordan Barowitz. The family has had its share of corporate infighting over succession plans. When Douglas’ father chose him as his successor over his eldest son, Robert, in the 1990s, the latter brother became estranged from his family and eventually sued the company for his share of the family fortune. In September a jury convicted Robert of murdering his best friend 20 years ago. Douglas said in open court that he believes his brother would try to kill him too. “It can get personal,” said Zale. “There can be a lot of historical and emotional baggage.” ■

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OCTOBER 4, 2021 | CRAIN’S NEW YORK BUSINESS | 19

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STERLING

background industry is the Wild West.”

FROM PAGE 1

Speed’s limits

29 child pornography–related felonies and convicted of five. Ralph Gambles of Birmingham, Ala., was denied a $75,000 job as a mortgage banker after Sterling said he was “high risk” for having lived in a rooming or boarding house. It was actually a regular apartment. Chief Executive Joshua Peirez defends his company’s work and contends Sterling is tops in a field that has grown rapidly in the past 20 years, to an estimated 2,000 firms producing $3.2 billion in annual revenue. Sterling is one of the largest, with 5,200 employees and about $500 million in revenue. “I believe that we’re the best in the business, with an extremely low error rate,” Peirez said. “We feel very confident in the results that we’re able to deliver.” Sterling performed 75 million background checks for 40,000 clients, including 45% of the Fortune 500, during the fiscal year that ended June 30, according to initial public offering documents. The company declined to say what percentage of its reports contain errors. But a big competitor that also went public recently, First Advantage of Atlanta, said in federal court its own inaccuracy rate was 0.38%, or 13,392 out of 3.5 million reports. A judge described that figure as “quite frankly unflattering” and added “‘close enough’ for government work is not a valid defense.” Ariel Nelson, a staff attorney at the National Consumer Law Center, said it’s time for authorities to take a closer look at the background-check business, which is regulated by the same federal statute as Equifax and other credit- scoring firms. “The credit bureaus have a lot of problems,” Nelson said. “But the

Sterling was founded in 1975 by Billy Greenblatt, who told Crain’s in 2013 that he’d mastered the administration of lie-detector tests when he was 19. Twenty years ago the industry got a huge lift when 9/11 made background checks a top priority for many employers and data stashed in courthouses or government buildings began migrating online. In 2015 Greenblatt sold a three-quarters stake to Goldman Sachs and a Canadian bank for an undisclosed sum. Sterling says it can access more records faster than anyone else and that 70% of criminal background checks can be done in an hour and 90% in a day. It says its proprietary artificial-intelligence technology and “robotic process automation” give it an edge and that it has pipe-

can never be instant,” Coffey said. “You need to verify.” Asked about that, Peirez said: “We go to a courthouse in every single case to confirm the record is accurate. That is exactly how we do the work.” A spokesperson later wrote: “To clarify what Josh said, Sterling verifies information at the source every single time by accessing court records. This is true whether we do so by automation or sending someone to the courts. This is in contrast to some competitors that may use databases or other aggregated information for certain searches.” Background-check workers might not be so thorough at spotting errors because they fear getting reprimanded or pink-slipped should they fail to uncover actual crimes or other negative information. Underreporting is a sure way to get a call from an angry customer. “It gets quickly escalated through the ranks,” a senior background-check manager said in a deposition filed in federal court in Ohio two years ago. Last year Sterling agreed to settle a class action led by Gambles—the Alabama man denied a job because he was described as having lived in a rooming house— for $15 million, according to the firm’s IPO filing. The bill was paid by Sterling’s insurers. In 2019 the company used its own funds to settle a lawsuit brought by the Consumer Financial Protection Bureau, paying $6 million to certain consumers and a $2.5 million fine to the bureau without admitting wrongdoing. Grissom, the Florida woman denied a nanny job, filed suit last year, seeking class-action status in U.S. District Court in Manhattan. Sterling has denied her allegations. Peirez wouldn’t comment on pending litigation. “I’m very confident in our procedures,” he said, “and very confident

“THE HARDEST PART IS FINDING PEOPLE TO DO ALL THE SEARCHES” lines into courthouse databases across the country. “We have the ability to [work in] an automated fashion rather than someone having to show up there to go through records manually,” Peirez said. But speed combined with automation leads to mistakes, competitors say. Mike Coffey, president of Imperative Information Group, said it typically took his small firm about 51 hours to complete a background check before the Covid-19 pandemic. Now it takes up to four business days, as court clerks catch up on backlogs of paperwork. And because so many employers are hiring, some courts overrun with background screeners have limited how long they may spend inside. “People want instant results, but it

BE WHERE

that ultimately we will not be found to have violated any laws in regards to this case or any others.” Cases are typically settled out of court, and plaintiffs often must agree to keep terms confidential. “You can draw your own conclusions on why Sterling would want that,” said Adam Singer, a Manhattan consumer-rights lawyer.

‘Never even been to Ohio’ Despite its legal problems, business at Sterling is thriving as workers return to the job market. First-half revenue clocked in at $300 million, a 44% jump over last year’s depressed figure, and its IPO—led by Goldman Sachs—was well received. “The entire industry has never been busier,” Coffey said. “The hardest part now is finding people to do all the searches.” The stock price of competitor First Advantage has gained 33% since it went public in June. Its revenues and legal problems are similar to Sterling’s. Florida grocery worker Richard Williams sued for being wrongly identified by First Advantage as a convicted cocaine dealer. He was awarded $3.3 million by a jury. In 2017 a federal judge slapped down a motion to reduce the award, citing “the reprehensibility of First Advantage’s actions.” The company declined to comment. Even so, Wall Street analysts predict the firm’s operating profit will grow by 14% in the next one to three years. Its revenues are expected to rise by as much as 10% without the benefit of acquisitions. An industry report in 2018 showed 95% of firms surveyed use background screeners. “Companies like Sterling have been hugely successful in persuading employers that they need them,” Nelson said. “You can’t hire someone without this search process.” She said the Biden administration needs to examine how often inaccurate information, including expunged or sealed data, crops up

in reports. Although consumers can get information about their credit history from a single centralized source, that’s not true for data held by background-check companies. Sometimes mistakes in background reports can reappear after they’ve been fixed. That happened in the Williams case. In 2018 Devonte Walker of Georgia accused Sterling of reinserting information that had been disputed and deleted from his file. The information, which said he’d been imprisoned for narcotics trafficking, belonged to an Ohio man with the same name. “Mr. Walker has never lived or even been to Ohio,” his lawsuit reads. “Mr. Walker has suffered actual damages in the form of lost employment opportunities, harm to reputation and emotional distress, including frustration, stress, humiliation and embarrassment.” Walker’s attorney, Jeff Sand, said he couldn’t discuss the settlement because of a confidentiality agreement. Sand, who used to defend background checkers, said firms are attempting to minimize lawsuits by requiring legal complaints from job applicants to be adjudicated privately before arbitration panels instead of in open court. Sterling says it doesn’t require arbitration. “It means if you want a job, you may have to sign away rights,” Sand said. “A real shame.” The federal Fair Credit Reporting Act says background-check firms must use “reasonable procedures to assure maximum possible accuracy” in their reports. But even with attorneys filing reams of lawsuits accusing the firms of violating the law, the cost of dealing with them isn’t significant relative to their hundreds of millions in revenue. “We try to bring some measure of justice,” Singer said. “I don’t know how much deterrence there is when business is so profitable.” ■

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CLASSIFIEDS PUBLIC & LEGAL NOTICES Notice of Formation of Coastal Returns, LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 08/09/21. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: Coastal Returns, LLC, c/o BFFA 1430 Broadway, Ste. 1208, NY, NY 10018. Purpose: any lawful activities. Notice of the formation of Limited Liability Company. Name: NYCR SUBCDE 23, LLC (“LLC”). Articles of Organization filed with the Secretary of State of the State of New York (“SSNY”) on August 10, 2021. NY office location: New York County. The SSNY has been designated as agent of the LLC upon whom the process against it may be served. The SSNY shall mail a copy of any process to: NYCR SUB-CDE 23, LLC, c/o NYCRCDE, LLC, 99 Hudson Street, 15th Floor, New York, NY 10013. Purpose / character of LLC is to engage in any lawful act or activity. AR INNOVATIONS INTL. LLC. App. for Auth. filed with the SSNY on 09/ 03/21. Originally filed with Secreatary of State of Delaware on 11/16/2017. Office: New York County. SSNY designated as agent of the LLC upon whom process against it may be served. SSNY shall mail copy of process to the LLC, 245 East 63rd Street, Suite 319, New York, NY 10065. Purpose: Any lawful purpose. Notice of formation of Limited Liability Company. Name: Breaking Ground VI LLC (“LLC”). Articles of Organization filed with the Secretary of State of the State of New York (“SSNY”) on June 16, 2021. NY office location: New York County. The SSNY has been designated as agent of the LLC upon whom process against it may be served. The SSNY shall mail a copy of any process to The LLC, c/ o Common Ground Management Corporation, 505 Fifth Avenue, Fifth Floor, New York, New York 10018. P urpose/character of LLC is to engage in any lawful act or activity. Notice of Qualification of CSC ENTITY SERVICES, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 08/27/21. Office location: NY County. LLC formed in Delaware (DE) on 04/14/98. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co., 80 State St., Albany, NY 12207-2543. DE addr. of LLC: 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, Div. of Corps., 401 Federal St. - Ste. 4, Dover, DE 19901. Purpose: Any lawful activity. Notice of Qualification of MAMOURA HOLDINGS (US) LLC. Authority filed with Secy. of State of NY (SSNY) on 08/02/21. Office location: NY County. LLC formed in Delaware (DE) on 03/22/21. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: One Vanderbilt Ave., NY, NY 10017, Attn. General Counsel. Address to be maintained in DE: 251 Little Falls Dr., Wilmington, DE 19808. 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.

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PUBLIC SALE NOTICE UCC Public Sale Notice

Please take notice that Jones Lang LaSalle (“JLL”), on behalf of INVICTUS 187 MEZZ LLC, a Delaware limited liability company (the “Secured Party”), as successor-in-interest to Prophet Mortgage Opportunities L.P., offers for sale at public auction on Thursday, November 4, 2021, at 10:00 a.m. (Eastern Time) at the offices of Cole Schotz P.C., 1325 Avenue of the Americas, 19th Floor, New York, New York 10019, and also being broadcast for remote participation via Zoom videoconference, in connection with a Uniform Commercial Code sale, 100% of the limited liability company membership interests (the “Interests”) in 187 KENT OWNER LLC, a New York limited liability company (the “Mortgage Borrower”), which is the sole owner of the property commonly known as: 187 Kent Avenue, Brooklyn, New York 11249 (the “Property”). The Interests are currently owned by 187 KENT, LLC, a New York limited liability company (the “Mezzanine Borrower”). The Secured Party, as lender, made a loan (the “Mezzanine Loan”) to the Mezzanine Borrower. In connection with the Mezzanine Loan, the Mezzanine Borrower granted to the Secured Party a first priority lien on the Interests pursuant to that certain Pledge and Security Agreement, dated as of October 11, 2019 (the “Pledge Agreement”). The Secured Party is offering the Interests for sale in connection with the foreclosure on the pledge of such Interests. The Mezzanine Loan is subordinate to (i) a certain mortgage loan to Mortgage Borrower (the “Mortgage Loan”); and (ii) other obligations and liabilities of the Mortgage Borrower that are otherwise affecting the Property. The sale of the Interests will be subject to all applicable third-party consents and regulatory approvals, if any. Without limitation to the foregoing, please take notice that there are specific requirements for any potential successful bidder in connection with (i) obtaining information and (ii) bidding on the Interests, including but not limited to, (1) that each bidder must be a “Qualified Transferee” as that term is defined in that certain Intercreditor Agreement, dated October 11, 2019 (the “Intercreditor Agreement”), entered into by and among the Secured Party, the holder of the Mortgage Loan, and the holder of the Mezzanine Loan, as well as complying with any and all other requirements thereunder; (2) that the successful bidder must satisfy all of the applicable requirements of the Intercreditor Agreement, including but not limited to Section 6 thereof; and (3) that each bidder must deliver such documents and pay such amounts as required by the Intercreditor and the applicable governing documents relating to the Interests. Please note, meeting any requirements of the Intercreditor Agreement shall be at the sole risk, cost, and expense of a prospective bidder. The Interests are being offered as a single lot, “as-is, where-is”, with no express or implied warranties, representations, statements or conditions of any kind made by the Secured Party or any person acting for or on behalf of the Secured Party, without any recourse whatsoever to the Secured Party or any other person acting for or on behalf of the Secured Party and each bidder must make its own inquiry regarding the Interests. The winning bidder shall be responsible for the payment of all transfer taxes, stamp duties and similar taxes incurred in connection with the purchase of the Interests. Secured Party reserves the right to credit bid, set a minimum reserve price, reject all bids (including, without limitation, any bid that it deems to have been made by a bidder that is unable to satisfy the requirements imposed by Secured Party upon prospective bidders in connection with the sale or to whom in Secured Party’s sole judgment a sale may not lawfully be made), terminate or adjourn the sale to another time, without further notice, and to sell the Interests at a subsequent public or private sale and to impose any other commercially reasonable conditions upon the sale of the Interests as Secured Party may deem proper. Secured Party further reserves the right to determine the qualifications of any bidder, including a prospective bidder’s ability to close the transaction on the terms and conditions referenced herein and to modify these terms of sale. Secured Party further reserves the right to verify that each certificate for the Interests to be sold bears a legend substantially to the effect that such interests have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and to impose such other limitations or conditions in connection with the sale of the Interests as the Secured Party deems necessary or advisable in order to comply with the Securities Act or any other applicable law. All bids (other than credit bids of the Secured Party) must be for cash, and the successful bidder must be prepared to deliver immediately available good funds within forty-eight (48) hours after the sale and otherwise comply with the bidding requirements. Further information concerning the Interests, the requirements for obtaining information, the requirements for bidding on the interests, and the Terms of Sale can be found at http://www.187kentuccsale.com/ or by contacting JLL using the contact information below. Contact Information for Jones Lang LaSalle: Attn: Brett Rosenberg 212-812-5926 brett.rosenberg@am.jll.com

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PUBLIC & LEGAL NOTICES Notice of Qualification of JOY, LOVE & PEACE LLC. Authority filed with Secy. of State of NY (SSNY) on 08/04/21. Office location: NY County. LLC formed in Florida (FL) on 09/02/03. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: 3595 Anchorage Way, Coconut Grove, FL 33133, Attn: Dania Da La Vega, also the address to be maintained in FL. Arts of Org. filed with the Secy. of State, R.A. Gray Bldg., 500 South Bronough St., Tallahassee, FL 32399. Purpose: any lawful activities.

Notice of Qualification of 130 7TH AVE HOLDING LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 09/15/21. Office location: NY County. LLC formed in Delaware (DE) on 12/15/17. Princ. office of LLC: 152 W. 57th St., 60th Fl., NY, NY 10019. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the princ. office of the LLC. DE addr. of LLC: 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, John G. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.

Notice of Qualification of BSREP IV BROOKFIELD PNR L.P. Appl. for Auth. filed with Secy. of State of NY (SSNY) on 08/26/21. Office location: NY County. LP formed in Delaware (DE) on 03/18/21. Duration of LP is Perpetual. SSNY designated as agent of LP upon whom process against it may be served. SSNY shall mail process to the L.P., Brookfield Place, 250 Vesey St., 15th Fl., NY, NY 10281-1023. Name and addr. of each general partner are available from SSNY. DE addr. of LP: Corporation Service Co., 251 Little Falls Dr., Wilmington, DE 19808-1674. Cert. of LP filed with DE Secy. of State, 401 Federal St., Dover, DE 19901. Purpose: Any lawful activity.

Notice of Qualification of BSREP IV BROOKFIELD PR L.P. Appl. for Auth. filed with Secy. of State of NY (SSNY) on 08/26/21. Office location: NY County. LP formed in Delaware (DE) on 03/18/21. Duration of LP is Perpetual. SSNY designated as agent of LP upon whom process against it may be served. SSNY shall mail process to the L.P., Brookfield Place, 250 Vesey St., 15th Fl., NY, NY 10281-1023. Name and addr. of each general partner are available from SSNY. DE addr. of LP: Corporation Service Co., 251 Little Falls Dr., Wilmington, DE 19808-1674. Cert. of LP filed with DE Secy. of State, 401 Federal St., Dover, DE 19901. Purpose: Any lawful activity.

PUBLIC SALE NOTICE UCC Public Sale Notice

Please take notice that Jones Lang LaSalle, on behalf of Reuben Brothers Limited, incorporated and registered in Bermuda (the “Secured Party”), offers for sale at public auction on October 29, 2021 at 3:00 p.m. (ET) in the offices of Reed Smith LLP, 599 Lexington Avenue, 24th Floor, New York, NY 10022 (remote access to the public sale by telephone will be made available to prospective purchasers on request), in connection with a Uniform Commercial Code sale, 40% of the limited liability company membership interests in Gramercy Park House LLC, a Delaware limited liability company (the “Issuer”), which is the sole owner of the property commonly known as 14-16 East 16th Street, New York, NY 10003 (together with all rights, interests, privileges, benefits, powers, preferences, restrictions, and limitations related thereto, the “Interests”). The Interests are owned by DoIT Hospitality Delaware LLC, a Delaware limited liability company (the “Pledgor”). The Secured Party, as lender, made a loan in the original principal amount of $11,400,000 USD (the “Loan”) to the Pledgor. In connection with the Loan, the Pledgor granted to the Secured Party a first priority security interest in the Interests pursuant to that certain Pledge and Security Agreement, dated as of March 21, 2019, between the Pledgor and the Secured Party. The Secured Party is offering the Interests for sale in connection with the foreclosure on the pledge of such Interests. The Interests are being offered as a single lot, “as-is, where-is”, with no express or implied warranties, representations, statements or conditions of any kind made by the Secured Party or any person acting for or on behalf of the Secured Party, without any recourse whatsoever to the Secured Party or any other person acting for or on behalf of the Secured Party and each bidder must make its own inquiry regarding the Interests. The winning bidder shall be responsible for the payment of all transfer taxes, stamp duties and similar taxes incurred in connection with the purchase of the Interests. The Secured Party reserves the right to credit bid, set a minimum reserve price, reject all bids (including without limitation any bid that it deems to have been made by a bidder that is unable to satisfy the requirements imposed by the Secured Party upon prospective bidders in connection with the sale or to whom in the Secured Party’s sole judgment a sale may not lawfully be made) and terminate or adjourn the sale to another time, without further notice. The Secured Party further reserves the right to restrict prospective bidders to those who will represent that they are purchasing the Interests for their own account for investment not with a view to the distribution or resale of such Interests, to verify that each certificate for the Interests to be sold bears a legend substantially to the effect that such interests have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be disposed of in violation of the provisions of the Securities Act and to impose such other limitations or conditions in connection with the sale of the Interests as the Secured Party deems necessary or advisable in order to comply with the Securities Act or any other applicable law. All bids (other than credit bids of the Secured Party) must be for immediately available good funds, and the successful bidder must be prepared to deliver immediately available good funds within 24 hours after the sale and otherwise comply with the bidding requirements. Further information concerning the Interests, the requirements for obtaining information and bidding on the interests and the Terms of Sale can be found at www.16east16uccsale.com. Brett Rosenberg +1 212-812-5926; brett.rosenberg@am.jll.com

SUBMIT YOUR BUSINESS CLASSIFIEDS TODAY! Advertising Section

Contact Claudia Hippel at212-210-0189 312-659-0076 To place a classified ad, Call or email: claudia.hippel@crain.com or Email: jbarbieri@crainsnewyork.com OCTOBER 4, 2021 | CRAIN’S NEW YORK BUSINESS | 21

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Advertising Section

CLASSIFIEDS

Contact Claudia Hippel at 312-659-0076 or email: claudia.hippel@crain.com

PUBLIC & LEGAL NOTICES LAURA YORKE LITERARY SERVICES, LLC, Arts. of Org. filed with the SSNY on 08/26/2021. Office loc: NY County. SSNY has been designated as agent upon whom process against the LLC may be served. SSNY shall mail process to: The LLC, 23 East 74th Street, APT. 14ABD, NY, NY 10021. Purpose: Any Lawful Purpose.

Notice of Formation of 110 FIFTH AVENUE REALTY LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 08/18/21. Office location: NY County. Princ. office of LLC: 251 W. 92nd Corp., c/o Rabina Realty, 505 Fifth Ave., 27th Fl., NY, NY 10017. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the addr. of its princ. office. The regd. agent of the company upon whom and at which process against the company can be served is 251 W. 92nd Corp., c/o Rabina Realty, 505 Fifth Ave., 27th Fl., NY, NY 10017. Purpose: Any lawful activity.

Notice of Formation of DEAD OUTLAW, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 08/30/21. Office location: NY County. Princ. office of LLC: c/o Significant Others Inc., 118 W. 22nd St., 7th Fl., NY, NY 10011. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the addr. of its princ. office. Purpose: Any lawful activity.

Notice of Qualification of SCALE 959 STERLING LENDER LLC. Authority filed with Secy. of State of NY (SSNY) on 09/09/21. Office location: NY County. LLC formed in Delaware (DE) on 09/08/21. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: c/o National Registered Agents, Inc., 28 Liberty St., NY, NY 10005, also the registered agent upon whom process may be served. Address to be maintained in DE: c/o National Registered Agents, Inc., 1209 Orange St., Wilmington, DE 19801. Arts of Org. filed with the DE Secy. of State, Division of Corporations, John G. Townsend Bldg., 401 Federal St. Ste. 4 Dover, DE 19901. Purpose: any lawful activities.

Notice of Qualification of CrossHarbor Institutional Partners 2021 Access Advisors LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 08/23/21. Office location: NY County. LLC formed in Delaware (DE) on 04/26/21. Princ. office of LLC: 200 West St., NY, NY 10282. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the princ. office of the LLC. DE addr. of LLC: Intertrust Corporate Services Delaware Ltd., 200 Bellevue Pkwy., Ste. 210, Wilmington, DE 19809. Cert. of Form. filed with Secy. of State, Div. of Corps., John G. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.

S H A R E

Y O U R

Notice of Qualification of CrossHarbor Institutional Partners 2021 Access LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 08/23/21. Office location: NY County. LLC formed in Delaware (DE) on 04/26/21. Princ. office of LLC: 200 West St., NY, NY 10282. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the princ. office of the LLC. DE addr. of LLC: 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., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity. SCRIMALE REALTY, LLC, Arts. of Org. filed with the SSNY on 08/02/2021. Office loc: NY County. SSNY has been designated as agent upon whom process against the LLC may be served. SSNY shall mail process to: The LLC, 745 Fifth Avenue, 5th Floor, NY, NY 10151. Purpose: Any Lawful Purpose. Notice of Qualification of STORMFIELD CAPITAL FUNDING I, LLC. Authority filed with Secy. of State of NY (SSNY) on 09/08/21. Office location: NY County. LLC formed in Connecticut (CT) on 06/01/15. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: 200 Pequot Ave., Southport, CT 06890, also the address to be maintained in CT. Arts of Org. filed with the Secy. of State, 165 Capitol Ave., Ste. 1000, Hartford, CT 06106. Purpose: any lawful activities.

Notice of Formation of 50TH & 5TH LIC JV LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 08/27/21. Office location: NY County. Princ. office of LLC: 11 Park Pl., Ste. 1705, NY, NY 10007. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the addr. of its princ. office. Purpose: Any lawful activity.

Notice of Formation of 300 WEST REENS LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 09/13/21. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: The Limited Liability Company, 48 Long Mountain Rd., New Milford, CT 06776. Purpose: any lawful activities. Notice of Qualification of ASTER AND HONEY, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 09/24/21. Office location: NY County. LLC formed in Delaware (DE) on 09/23/21. Princ. office of LLC: 300 E. 56th St., Apt. 28C, NY, NY 10022. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the princ. office of the LLC. 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., Ste. 3, Dover, DE 19901. Purpose: Any lawful activity.

C O M P A N Y ’ S

NOTICE OF FORMATION OF A1traininggroup LLC. Art. of Org. filed with the Secretary of State of NY (SSNY) on 08/08/2021. Office location: NEW YORK County. SSNY designated as agent upon whom process may be served. SSNY shall mail a copy of process to the LLC at 485 first ave apt 3B, New York, New York 10016. Purpose: any lawful act or activity. Notice of Formation of Cientifico Latino LLC. Articles of Organization filed with the Secretary of State of NY (SSNY) on 06/14/2021. 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 or her is: Cientifico Latino LLC 400 West 119th Street, Apt 5D New York, NY 10027. The LLC designates the following as its registered agent to whom to send a copy of any process to the LLC: United States Corporation Agents, Inc. 7014 13th Avenue Suite 202 Brooklyn, NY 11228. Purpose: Educational Services

Notice of Formation of CPG ERIE

MANAGER LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 09/01/21. Office location: NY County. Princ. office of LLC: 419 Park Ave. S., Ste. 401, NY, NY 10016. 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: Real estate investment.

J O U R N E Y

Feature your latest milestones, launches, partnerships, awards and more in Crain’s

For more information, contact Debora Stein at dstein@crain.com or submit directly to

CRAINSNEWYORK.COM/COTM

22 | CRAIN’S NEW YORK BUSINESS | OCTOBER 4, 2021

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10/1/21 11:31 AM

TECH SPOTLIGHT A KITCHEN RENOVATION completed by a Realm user

YOUNG’S firm analyzes zoning codes and local regulations for property owners.

FOCAL POINTS

Union Square startup is bringing home the data Realm looks to help homeowners suss out whether a renovation can upgrade their property value BY RYAN DEFFENBAUGH

efore launching her startup, Realm, Liz Young had seen the way big businesses could harness data to make smart decisions. Young, 33, spent more than two years as an executive at Reonomy, a tech company that compiles huge amounts of property data and uses artificial intelligence to help commercial real estate investors make decisions. Yet for individual Americans seeking to become homeowners, “there is no place to turn to for advice,” Young said. That’s where she got the idea for Realm, launched from a Union Square office in December 2019 and backed by $15 million in venture capital investment. The company’s free-to-use website provides estimates of how different projects—a kitchen renovation, a new roof—could add to the value of a home. Able to analyze a blend of public and proprietary datasets, the company says it has helped more than 20,000 homeowners uncover an average of $175,000 in untapped property value. Its data includes analysis of zoning codes that can tell owners what they are allowed to build under local regulations.

Pandemic-built Realm in July closed a $12 million funding round led by GGV Capital, a Silicon Valley

firm that was an investor in Airbnb and Slack. The company expects to grow from 19 to 35 employees by the end of this year; the vast majority of its hiring has happened after March 2020. “We’ve built the whole company, basically, during a pandemic,” Young said. The pandemic greatly shifted the market for Realm’s product. More than 2 million Americans became new homeowners in 2020, according to Census data crunched by the Pew Research Center. That marked the

“WE’VE BUILT THE WHOLE COMPANY, BASICALLY, DURING A PANDEMIC” largest increase since 2003. “People are also looking at their homes differently—they are becoming offices, day care centers,” Young said. “They are looking at their homes and saying, ‘How can this meet my needs?’ We can be a partner in that.” Although its insights are offered free for anyone who registers on the website, the company is building out a premium paid product called Realm Advisory. The service

offers direct one-on-one consultations for homeowners with Realm employees for a fee between $250 and $500. The company plans to expand that offering to more markets next year.

Proptech’s popularity Although New York is known for its skyscrapers, Realm is among a growing list of local tech startups focused on the single-family home. Flatiron District–based Orchard, which helps homeowners buy and sell online, raised $100 million in venture capital in September at a $1 billion valuation. Midtown-based Sealed, which finances energy retrofits for homes, raised $16 million from a group of investors that included Robert Downey Jr. Venture capital investors placed about $10 billion into real estate startups, known as proptech, through July, nearly passing the total for all of 2020, according to data published by Crunchbase. SoHo-based Compass, a tech-driven residential real estate brokerage, went public through an initial public offering in April. Lower Manhattan online mortgage startup Better.com will go public through a special purpose acquisition company this fall. “If you look at the publicly traded proptech

FOUNDED December 2019 MANAGEMENT Liz Young, founder and CEO FULL-TIME EMPLOYEES 19 FUNDING Realm has raised $15 million from venture capital investors in two deals. PRODUCT MIX Realm’s website includes a free analysis tool for homeowners and a paid advisory service in California. GROWTH STRATEGY The company is investing in hiring more people and expanding its datasets, while also working to bring its paid services to more markets. WEBSITE myrealm.co

companies now, there is more activity on the residential side than the commercial side,” said Zach Aarons, co-founder and general partner at MetaProp, a venture capital firm focused on real estate. One of the early investors in Realm was Primary Venture Partners, a venture capital firm focused on investing in companies based in New York. “We’ve seen the incredible tools that large enterprises and owners of skyscrapers have long had access to,” said Jason Shuman, a partner at Primary. “We’ve tried to put a lot of our chips down on companies that are democratizing access to those tools for the masses.” ■ OCTOBER 4, 2021 | CRAIN’S NEW YORK BUSINESS | 23

P023_CN_20211004.indd 23

10/1/21 4:01 PM

CRAIN’S EVENT

Commercial Real Estate’s Post-Covid Outlook Thursday, Nov. 4 | 5-7 p.m.

Join us for a special NYC real estate event. Get back to your network with our in-person panel discussion featuring top tier developers and brokers as they unpack the post-pandemic landscape for the industry. Come network over cocktails and hors d’oeuvres in a rooftop setting. Register at CrainsNewYork.com/ CommercialOutlook

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