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

ASKED & ANSWERED Quinn on the challenges women in politics face PAGE 14

WARM WELCOME Tech:NYC names a lawyer as its next executive director PAGE 3

CRAINSNEWYORK.COM

JANUARY 24, 2022

FINANCE

TOP M&A DEALS

M&T banks on a big merger

This week’s list features the biggest deals of 2021, including several NYC-based targets Page 12

AP PHOTO

Feds are reviewing a $7.6 billion deal that would diversify the high-flying lender’s heavy real estate exposure BY AARON ELSTEIN

#1 Warner Media $104B

&T Bank was one of the city’s leading property lenders before Covid-19 hit, and commercial real estate loans account for about 40% of its portfolio—more than double that of its peers. The Buffalo-based bank has a plan to reduce its exposure to struggling New York hotels and offices, but it needs Uncle Sam to approve the $7.6 billion merger it struck last February with Connecticut-based People’s United Bank. It’s an uncomfortable position for a bank that long has distinguished itself as one of the industry’s best performers, thanks to conservative lending practices and a dedication to customer service. Between 1980 and 2016, M&T’s shares returned an averOF M&T’S LOANS age of 18.9% per year, rivaling the 19.5% of are in commercial Warren Buffett’s Berkshire Hathaway, a real estate, above major stockholder for many years. its peer average. A few years ago M&T got a call from a heating contractor asking for a loan so he could buy a crucial $40,000 piece of equipment that day. The branch manager quickly approved the loan and drove to the job site to close the deal. Within four hours the contractor had bought the part. “Our client was delighted,” M&T CEO Rene Jones said in his 2018 annual letter to shareholders, “so too were his customers,

#15 McGraw-Hill Education $6.7B

#32 Oak Hill Advisors LP $4.2B

BUCK ENNIS

ISTOCK

39%

See MERGER on page 18

REAL ESTATE

Companies don’t expect the omicron variant to keep their employees at home much longer, poll shows BY EDDIE SMALL

he omicron variant might have once again delayed companies’ plans to bring their workers back to the office, but many firms still anticipate having them back by spring. Although 75% of the major companies that

NEWSPAPER

VOL. 38, NO. 3

responded to the latest survey from the Partnership for New York City said they’d postponed their return-to-office plans because of the recent Covid-19 spike, 61% said they expect to have more than half their workers back by the end of March.

61%

OF respondents expect more than half of their staff in the office by the end of March.

The survey, conducted between Jan. 10 and 18, was meant to gauge the impact the Covid-19 omicron variant was having. A total of 187 companies representing 215,000 Manhattan office workers participated, and the responses typically came from human resources rep-

GOTHAM GIG

MAKING REAL ESTATE MORE AFFORDABLE PAGE 23

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resentatives, the partnership said. The majority of the surveyed employers have offices in Midtown West (37%), Midtown East (34%) and the Financial District (16%). And the majority of respondents came from the financial services (36%), real estate (16%), law (11%), See OMICRON on page 19

INSTANT EXPERT

How Hochul plans to widen internet access PAGE 10

1/21/22 5:27 PM

HEALTH CARE

Digital health startups shattered fundraising records in 2021, backed by bullish venture capital

he digital health sector saw another record year for venture capital funding in 2021, with some of the biggest deals coming from New York health startups. Rock Health, a San Francisco-based seed funding company has been tracking venture capital deals monthly since 2011. The sector in 2021 attracted $29.1 billion in funding—nearly double that of 2020—across 729 deals, a 51% increase. The average deal size also increased 30% from the previous year, to $39.9 million. Digital health companies headquartered in New York raised $6.5 billion across 141 deals in 2021. That's almost triple the $2.2 billion raised in 2020. Mega deals, or rounds that raised over $100 million, comprised 57% of all venture capital raised in 2021. Two deals in particular—Hudson Yards-based Noom's Series F ($540 million) and Flatiron District-based Ro's Series D ($500 million)—were also recorded as some of the largest rounds since Rock Health started tracking deals. “The increasing amount of mega deals indicates a sign of maturity in the digital health space,” said Megan Zweig, chief operating offi-

cer of Rock Health. The industry had been slow to pick up but accelerated since the pandemic, she added.

THE DIGITAL HEALTH INDUSTRY ONCE AGAIN BROKE RECORDS WITH VENTURE CAPITAL RAISED Total venture funding

$29.1B

$25B

SPACs proliferate There were 23 digital health companies that went public in 2021, nearly triple the eight that debuted in 2020, accourding to the report. Of the exits, 15 were mergers with special-purpose acquisition companies, and eight were traditional initial public offerings. There were only two SPAC-led exit and six traditional IPOs in 2020. While the trend of SPAC mergers in 2022 is likely to continue, it is too early to anticipate the boom for SPACs and the death knell of IPOs for health-tech companies, Zweig said. “It’s important to consider the number of SPACs that have formed and many have yet to deploy their capital,” she said. “We’ll have to wait and see if they even can." However, a maturing sector carries risk of overvaluation, especially as many early-stage rounds have drawn in larger amounts. The average Series A round in 2021 was $18 million and the average Series B round that year was 43 million. It had been $13 million and $35 million for the respective rounds in 2020. “From the startup standpoint, if

Number of deals

$30B

729

$20B $15B

$14.9B

$10B $5B 0

$1.2B

$1.6B

$2.1B

2011

2012

2013

$4.5B

$4.8B

$4.7B

$6B

2014

2015

2016

2017

$8.5B

$8.2B

2018

2019

2020

2021

900 800 700 600 500 400 300 200 100 0

SOURCE: Rock Health

they're raising high valuation Series A and B rounds, they will need to show that extraordinary performance baked into that high raise,” Zweig said. Some of those products, such as those in demand from Covid, can naturally deliver those promises, she said. But even for startups that have a longer reach to meet those goals, what had been different in 2021 was the proliferation of tools and companies that help organizations and digital health services operate better with each other, said Adriana Krasniansky, lead author of the report. In other words, companies no longer have to build full-stack technology capabilities and can instead

leverage or acquires existing ones built by others, she said. The bullish investor sentiment is likely to endure in 2022, with added attention to areas that might have previously been considered niche, Kransiansky said. Carolyn Witte, CEO and co-founder of Tia, a women's health provider in Flatiron District, concurred on a mental model shift. “2021 was the year that women’s health finally became niche no more, and the industry, including investors, started to wake up to the huge opportunity in women's health,” she said. “Investors used to ask ‘why are you cutting out half the population,

BLOOMBERG

BY SHUAN SIM

isn't that pretty limiting?’ ” Witte recalled. As her companied raised funds—to the tune of $100 million in a Series B last year—investors appeared to have understood Tia's value in targeting women. Witte said she expects to see dollars continue to flow into companies that offer comprehensive platforms over solutions that only address hyperspecific issues. "I expect we'll continue to see a lot of investor interest and fundraising in companies that treat women not as body parts or life stages but as whole people with complex physical, mental, and emotional health needs across their lives," she said. ■

HOSPITALITY

Despite a small boom spurred by tourists’ return, job numbers remained flat last month BY CARA EISENPRESS AND AMANDA GLODOWSKI

CONFERENCE CALLOUT

MARCH 3 MOST POWERFUL WOMEN IN NEW YORK LUNCHEON Join Crain’s for an in-person lunch to celebrate the 2021 Most Powerful Women honorees. Katherine Farley of Lincoln Center, restaurateur Melba Wilson of the NYC Hospitality Alliance, Nancy Hagans of the New York State Nurses Association, Kimberly Godwin of ABC News and MaryAnne Gilmartin of MAG Partners will all take part in discussions during the event.

MANHATTAN MANOR 201 W. 52nd St. Time: Noon to 2:30 p.m. CrainsNewYork.com/ MPW2022

n mid-December, New York City hotels were as full as they’d been since March 2020. Nearly a quarter of a million people saw Broadway shows—a $30 million infusion. International tourists returned to luxury retailers, as foot traffic climbed on Fifth Avenue and neighboring streets. The latest jobs data reflects what

lion positions in January 2020. The unemployment rate in the city fell a bit, to 8.8% last month from 9% in November. Nationwide, the unemployment rate stood at 3.9%. That gap has persisted throughout the Covid-19 pandemic recovery. The city’s falling unemployment rate is not a clearly positive indicator, however. As in previous months, the decline matches a reduction in the overall labor force, according to economist James Parrott of the New School. Still, the city’s recovery was picking up compared to the nation’s. Although the addition of 26,000 positions might not seem like a surge, the amount accounted for 13% of the total U.S. jobs gain last month, according to Barbara Denham, senior economist at Oxford Economics. New York certainly has some catching up to do, because its 9% net jobs decline since early 2020 is much bigger than the loss in its

THE DECLINE IN CITY JOBS MATCHES A REDUCTION IN THE OVERALL LABOR FORCE seemed, on the surface, to be a boom last month, while revealing economic weakness underneath. City employers added 26,000 jobs last month, adjusted for seasonality, according to the state Department of Labor. That put the total at 4.3 million, about 9% lower than the city’s all-time jobs peak of 4.7 mil-

peer cities. Industries contributing to the December pickup included retail and courier services, possibly due to a holiday ramp-up. Individual industry numbers were not adjusted for seasonality. There were also strong job gains in the professional and technical services industries, which include many technology and consulting positions. But other than that, the city’s fourth-quarter increases were mainly in low-paying sectors, Parrott pointed out, with 40,100 positions added from September through last month in home health care, warehousing, courier services and temporary agency employment. The sectors accounted for about one-third of all the jobs added. “A large part of this can be explained by several hard-hit face-toface industries recovering some of their very steep job losses,” Parrott said. Even those are mostly far behind their prepandemic levels, though.

Jobs at restaurants and bars, for example, increased by 10,100 in the fourth quarter but still would need to add 75,100 to get back to an early-2020 baseline. Jobs in the performing arts and in leisure and hospitality grew but not substantially.

Already laid off? Denham said the same people hired early last month might have been laid off by the time of the January jobs report survey. To that point, the survey was conducted Dec. 12, Denham said, during the short-lived busy period and before the Covid-19 omicron surge led to restaurant closures, Broadway shutdowns and canceled leisure and business travel. “I’m less optimistic about January,” she said. One decline that could continue, thanks to Mayor Eric Adams’ promised 3% cut to most city agencies, is the one in local government jobs, which dropped by 6% between November and last month, before he even took office. ■

Vol. 38, No. 3, January 24, 2022—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for no issue on 1/3/22, 7/4/22, 7/18/22, 8/1/22, 8/15/22, 8/29/22, 11/28/22 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 2022 by Crain Communications Inc. All rights reserved.

2 | CRAIN’S NEW YORK BUSINESS | JANUARY 24, 2022

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TECHNOLOGY

Meet Tech:NYC’s new chief

Lawyer Jason Clark, a former City Council candidate, is set to assume leadership of the influential industry group BY RYAN DEFFENBAUGH

he next executive director of Tech:NYC will be Jason Clark, a lawyer and recent candidate for the City Council, the industry group said last week. Clark, 39, is scheduled to assume the role Jan. 24. He takes over from Julie Samuels, who has led the nonprofit since its founding six years ago. Tech:NYC has about 800 members, ranging from small startups to tech giants Google, Facebook, Amazon and Microsoft. Born and raised in Queens, Clark currently leads the civil and commercial litigation team at law firm Hamilton Clarke. He has served as an assistant state attorney general, overseeing the Harlem office, and as president of the Metropolitan Black Bar Association. “As tech becomes increasingly intertwined with the city’s economy, and each of our dai-

ly lives, I see so many opportunities where the industry can help New York,” Clark told Crain’s. Clark also founded and leads Dreamchasers, a nonprofit that seeks to level the playing field for Black and Latino students in the city’s school system, through free tutoring and mentorship in preparation for the city’s specialized high school admissions test. Last year he ran for the southeastern Queens City Council seat vacated by termlimited Councilman I. Daneek Miller and lost in a crowded Democratic primary field to Nantasha Williams. Samuels will remain on the board of Tech:NYC and said she plans to take a couple of months off before deciding what’s next in her career. She said the search process for

her replacement lasted several months and included a long list of candidates. What was most important in finding a new director, she said, was not necessarily a background in the technology industry but deep roots in the city and knowledge of issues affecting New Yorkers. That’s because, Samuels said, “the people who work at technology companies here are New Yorkers first.”

“I SEE MANY OPPORTUNITIES WHERE THE INDUSTRY CAN HELP NEW YORK”

Balanced needs Tech:NYC has five staffers and an annual budget of $1.5 million. It receives funding from member firms’ dues, which can be free for companies with five employees or fewer and up to $50,000 per year for corporations with 5,000 or more employees. Tech:NYC works with city officials to

champion New York as the best place to live and work, but occasionally it has been at odds with lawmakers over policy decisions. Some notable fights include the regulation of Airbnb and other short-term online rental companies, data privacy regulations, and the scuttled plans for an Amazon headquarters in Long Island City. When asked about balancing the interests of the industry and partnerships with city officials, Clark said he will rely on his experience as a lawyer, candidate for office and member of a community board, where he had to weigh the concerns of many constituencies. “What we’re trying to do is make sure we’re using technology to improve the lives of others,” Clark said. “The way you do that is by making sure that we are listening to our members and what their desires and needs are, but equally working together and synthesizing the information that we receive from the community as a whole.” ■ JANUARY 24, 2022 | CRAIN’S NEW YORK BUSINESS | 3

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RESIDENTIAL SPOTLIGHT

NYU knows a thing or two about luxury real estate The university has put a four-bedroom faculty apartment in the West Village on the market, seeking a 20% profit BY C. J. HUGHES

n ivory tower seems to know its bricks and mortar. New York University has listed one of its off-campus faculty residences for almost $6.8 million, which could bring the nonprofit Greenwich Village school a 20% windfall. The unit is a West Village condo with four bedrooms, four-and-ahalf baths and floor-to-ceiling windows in a building with a wavyglass facade. It’s actually a combination of two adjacent units. Through an investment group affiliated with its law school, the university purchased the side-by-side apartments for $5.6 million in 2011, according to

$6.8M

LISTING PRICE for No. 3DA at 166 Perry St. school—one of the city’s largest landlords—has done well with luxury condos, which it snapped up in recent years across the city, in part to recruit professors. Indeed, consider No. 16B at 305 E. 85th St., a glassy condo on the Upper East Side where amenities include a marble lobby and a roof deck with an outdoor kitchen. The investment group bought the four-bedroom unit for roughly $4.5 million in 2012, records show, before turning around and selling it for almost $5.1 million seven years later, a 13% profit. The investment group, the New York University School of Foundation Law, has $151 million in assets, according to public filings. It owns high-end properties in Manhattan and Brooklyn. Among those properties is No. 8A at 845 West End Ave. It’s a four-bedroom prewar condo near Riverside Park with an eat-in kitchen with limestone counters; it cost $3.35 million in 2012. Another place a professor can crash is No. 7E at 99 Jane St. That’s a two-bedroom condo near the High Line that sold for $2.3 million in 2003. ■

public records. It’s unclear if something other than a strong sales market prompted the school to part with the unit, No. 3DA at 166 Perry St., near the Hudson River. A spokesman for New York University declined to discuss strategy. Jonathan Isaacs, the broker with Reserve Real Estate who is marketing the property, had no comment But it’s not the first time the

STREETEASY.COM

THE SCHOOL IS ONE OF THE LARGEST LANDLORDS IN THE FIVE BOROUGHS

NO. 3DA AT 166 PERRY ST., near the Hudson River, features four bedrooms, four-and-a-half baths and floor-to-ceiling windows.

HOSPITALITY

Restaurants see glass half-full as state nears permanent approval for sales of carryout alcoholic beverages

t’s one for the road, take two. New York plans to make it permanently legal for restaurants to sell alcohol to go, after a temporary pandemic program became popular with takeout customers and proprietors. The latter used the alcohol sales to diversify their business

likely by early April. The program was renewed several times by former Gov. Andrew Cuomo but it eventually expired in June, when the last state of emergency ended. After that, advocates tried to get a modified permanent program passed in the Legislature but were unable to advance the bills. Hochul’s proposed new formulation of the rule once again would allow restaurants with retail liquor licenses to sell bottles of alcohol and mixed drinks to go—any products they are already licensed to sell in-house. It apparently will be left to the state Liquor Authority to decide whether restaurants may sell full bottles of booze, said Robert Bookman, a partner at Pesetsky and Bookman, a hospitality law firm that specializes in regulation. The bills in the Legis-

“WE HAVE TO THINK ABOUT A RESTAURANT OPERATING IN A NEW NORMAL” model to make up for periodic slowdowns in dining-room sales. The new program was included in the 2023 executive budget proposal last Tuesday, following a pledge in Gov. Kathy Hochul’s State of the State address Jan. 5. It's expected to go into effect immediately upon the budget’s passage by the Legislature,

lature had not permitted the sale of whole bottles, a concession to the liquor-store industry, which was unenthusiastic about the permanent program. Bookman predicted that restaurants’ to-go alcohol sales will not negatively affect liquor stores. “People aren’t running down to buy Triple Sec and mix their own margaritas every time they want a fajita,” he said.

Turning things around Karl Franz Williams, owner of cocktail bar 67 Orange Street, said a permanent takeout alcohol program would give his bars the chance to increase sales. “If we are thinking that we live with Covid in the future, we have to think about a restaurant or bar operating in a new normal, where there will always be people who don’t come in, whether they are quarantining or worried during a surge,” Williams said. “There will be

BUCK ENNIS

BY CARA EISENPRESS

a need for us to extend our physical business with takeout.” Although at one point takeout orders composed basically all of his business, by the time the program ended, it was down to about 20%, he said. That, it turns out, is about the

same percentage by which business has dropped between November, which was busy, and this month, which is quiet, he said. “I think it will turn around in February,” Williams said. “But we are still trying to make up for two years.” ■

4 | CRAIN’S NEW YORK BUSINESS | JANUARY 24, 2022

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Investing in greener companies with Merrill.

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CN020597.indd 1

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IN THE MARKETS

Signature Bank reports record Q4 earnings and recommits to commercial real estate lending

The financial institution’s share price has nearly doubled in the past 12 months, though it fell slightly last week

“IT’S A GOOD TIME RIGHT NOW TO MAKE LOANS. COVID’S NOT LIKELY TO GET WORSE”

BUCK ENNIS

ignature Bank reported a earnings, loan growth and deposits nearly 60% jump in quarterly hitting records and continuing the earnings as the lender by- bank’s streak as one of the nation’s passed damage done by the fastest growing. Signature, a major lender to ownomicron Covid-19 surge and recommitted to commercial real es- ers of rent-regulated apartments and small businesses, has tate lending after cutting $118 billion in assets and its exposure nearly in has more than doubled in half. size in three years. Although this year has It also has a cryptocurbeen pretty bleak so far, and the Federal Reserve rency business that made reported last Tuesday it popular with the Bitcoin that business activity has crowd. “abruptly leveled off” for Its share price nearly New York manufacturers doubled in the past 12 this month, Signature months. It fell by about AARON ELSTEIN 2.5% Chief Executive Joseph last Tuesday. DePaolo said on a conferAfter significantly ence call that he’s confident the city shrinking its commercial real estate exposure to 312% of capital from will regain its mojo. “It’s a good time right now to 593%, the bank’s CRE group grew make loans,” DePaolo said. “Covid’s loans by $707 million in the fourth out there but … it’s not likely to get quarter. The loans were primarily for apartment buildings, which ofany worse.” ten have retail spaces on the ground floor, and they underscore how scorching-hot New York’s housing market has become. “We expect them to begin growNew York’s economy was rebounding nicely until mid-Decem- ing again,” DePaolo said, referring ber, and Signature’s results reflect- to CRE loans. “This marks the end ed that, with fourth-quarter of a multiyear planned slowdown

for that business.”

‘Exceptional growth’ Net income at Signature rose by nearly $100 million over the year-earlier period, to $272 million. Earnings got a lift as Covid-related

deferrals fell to $8.3 million from $1.3 billion at this time last year and loan-loss provisions virtually disappeared. The bank set aside less than $7 million, down from about $36 million a year ago, even though delinquencies increased slightly as

a percentage of total loans. “Fourth-quarter results continued the recent trend for exceptional growth with continued gradual credit deterioration,” said Jake Civello, an analyst at Janney Montgomery Scott. ■

REAL ESTATE

Here’s what the governor’s revamped tax-incentive plan for affordable housing developers could look like

ov. Kathy Hochul’s proposed iteration of controversial affordable housing program 421-a could eliminate eligibility for higher earners, permanently subject all affordable units to rent stabilization, and extend tax benefits for cooperatives and condominiums, as outlined last Tuesday in the executive budget proposal. The original tax-exemption program, designed to incentivize developers to build more affordable housing, is scheduled to expire June 15. The program has had many critics, but the real estate community says it won’t build affordable housing without a tax break. Hochul’s proposal for a modified program, dubbed Affordable Neighborhoods for New Yorkers, was well received by the industry, including the Real Estate Board of New York, which said it was relieved that 421-a would continue in some form. “The governor’s proposal provides the private sector with an important tool for producing rental housing at deeper levels of afford-

ability permanently,” REBNY President James Whelan said. But tenant advocates blasted the proposal, saying it would be ineffective. “Simply put, Gov. Hochul’s proposal to ‘reform’ 421-a is in name only,” the Legal Aid Society said in a statement. “Continuing 421-a is bad policy, a colossal waste of tax dollars and a missed opportunity to invest in what actually works for our clients and the communities we serve.” Here are the issues the revamped program seeks to address.

Affordability A major criticism of 421-a is its income eligibility level. Under the program, families earning up to 130% of an area’s median income are eligible for affordable housing. But the rent for a two-bedroom apartment at that level could be more than $3,000. The new plan requires multifamily buildings with more than 30 units to make at least 25% of their apartments affordable to tenants earning between 40% and 80% of the area’s median income.

Rental buildings with fewer than 30 units would be required to make at least 20% of units affordable to those with a household income at 90% of the AMI. For co-ops and condos, all units would need to be affordable at 130% of the AMI.

Time frame Hochul is calling for buildings with 30 or more units to keep their affordable apartments permanently affordable, rather than for just the 35 years they’re required now. Projects with fewer than 30 units would continue to be subject to the 35year timeline. Currently all units in a building that includes affordable housing are subject to rent stabilization for 35 years, even market-rate ones. But the new program would require only the affordable units to be permanently rent-stabilized. Co-ops and condos have to stay affordable for 40 years.

Tax benefits Right now developers of projects with 300 or more units get a full tax exemption for 35 years. Small projects get 25 years plus partial ex-

emptions for 10 years. But those programs are being consolidated to offer a full tax exemption for up to three years during construction, and for 25 years after construction is completed, followed by a partial tax exemption for 10 years, no matter the size of the building. Co-ops and condos currently get 20 years of full and partial tax benefits, but that number is being doubled to 40 years of full exemptions.

111 VARICK ST.

Wages The areas where more affordability is required and more benefits are available to developers—known as enhanced affordability areas— are not changing. However, they would be renamed prime development areas. Developers would have to pay construction and building service workers a set wage in those locations. Those wages would go up from $60 per hour in Manhattan and $45 per hour in Brooklyn and Queens, to a minimum of $63 per hour in Manhattan and $47.25 per hour in Brooklyn and Queens for projects with 300 or more units. Workers

BUCK ENNIS

BY NATALIE SACHMECHI

would be entitled to a 5% raise after one year and then every three years. Cooperative and condominium projects where 50% of the units are affordable up to 80% of the AMI, and those with a project labor agreement, would be exempt from the wage requirements. There would be no building service employee wage rules for buildings with fewer than 300 units or where at least half of the units are affordable up to 90% of the AMI. ■

6 | CRAIN’S NEW YORK BUSINESS | JANUARY 24, 2022

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Make your second home dreams a reality

pacaso.com

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1/14/22 10:25 AM

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

EDITORIAL

publisher/executive editor

For the city’s health, MTA must officially explore installing subway barrier doors noted in the page 15 story, “Why doesn’t the subway have barrier doors? Some call on MTA to take action after fatal push,” such structures can be found in many European and Asian cities, including Paris and Hong Kong. Although critics say the installation of platform barriers could take years and cost billions, the business community needs the city to prioritize looking into their feasibility. We cannot predict how Covid-19 and its variants will affect our workweeks, but we can start to put plans in place to fix problems that we can control. And making sure that when businesses once again require workers to come into the office, they arrive safely, is well within the city’s control. Of course, this isn’t just about office workers. All manner of riders rely on the subway system to get to and from their places of business, from retail stores to hospitals. And all of these New Yorkers deserve to feel safe as they move through the city, trying

PLATFORM BARRIER DOORS WILL GIVE TRANSIT RIDERS PEACE OF MIND The agency has long dithered and dismissed calls to install platform barrier doors that block track access until a train is safely in the station. It’s time for action. As Crain’s reporter Brandon Sanchez

EDITORIAL editor-in-chief Cory Schouten,

cory.schouten@crainsnewyork.com managing editor Telisha Bryan assistant managing editor Anne Michaud data editor Amanda Glodowski digital editor Taylor Nakagawa deputy digital editor, audience & analytics

Jennifer Samuels art director Carolyn McClain photographer Buck Ennis senior reporters Cara Eisenpress,

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

Brian Pascus, Natalie Sachmechi, Brandon Sanchez, Shuan Sim op-ed editor Jan Parr,

opinion@crainsnewyork.com executive assistant Brittany Brown to contact the newsroom:

editors@crainsnewyork.com www.crainsnewyork.com/staff 685 Third Ave., New York, NY 10017-4024 ADVERTISING

www.crainsnewyork.com/advertise GETTY IMAGES

s companies weigh the best ways to lure workers back to offices, one topic that keeps surfacing is subway safety. Employees already aren’t eager to return to a crowded commute after nearly two years of remote work. Add rising crime to the medley of train delays, trash and rats, and the prospect of daily subway time becomes even less appealing. The recent killing of Michelle Go, a senior manager at Deloitte Consulting, who died after a homeless man allegedly pushed her onto the tracks in the Times Square station on Jan. 16, should be a wake up call for the city and the Metropolitan Transportation Authority.

Frederick P. Gabriel Jr.

to support themselves and their family. For his part, Mayor Eric Adams is focusing on making sure there are police officers in stations and on trains, and their presence is a vital piece of the puzzle. But during times when they cannot be there, platform barrier doors will give transit riders peace of mind. President Joe Biden has made it

clear that the transit system is important to him, and the city and the state should be able to secure funding to offset the cost of whatever is deemed necessary to keep the subways safe. But we can’t keep wringing our hands after each dangerous incident. The time to look into the feasibility of platform barrier doors is officially now. ■

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OP-ED

Ana Jimenez, ajimenez@crainsnewyork.com

Two years into Covid and we’re still not getting the message: It’s airborne

senior manager of events Michelle Cast,

michelle.cast@crainsnewyork.com REPRINTS director, reprints & licensing Lauren Melesio,

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

BY ALEXANDER RICCIO

lmost two years into the pandemic, we are still not getting the message out that air ventilation and filtration are key to making indoor spaces safe. Vaccines (mandatory) are great. Masks (well, at least N95s) are great. But if indoor air is bad, we are not going to get rid of Covid-19. Here’s how to bring down the tragic pandemic health numbers while keeping the economy going.

gathered for holiday occasions, a spike was inevitable. The virus can remain suspended in stagnant, unfiltered air for hours, and even brief contact with a “cloud” of the aerosols is enough to get infected. Recall that a single person at a synagogue in New Rochelle infected more than 100 congregants in 2020, shutting down the whole town. Researchers recently traced half of all Covid-19 deaths in Ireland to just 400 buildings (in a country that has 2 million buildings). What about New York City? What if less than 1% of all our buildings were responsible for the majority of Covid-19 in New York? This is a problem we can tackle, quickly and easily, and it could be the beginning of the end of the pandemic. I have personally measured the air in indoor public spaces with a carbon-dioxide meter. I’ve found

IF INDOOR AIR IS BAD, WE ARE NOT GOING TO GET RID OF COVID-19 First, public health officials and elected leaders have to acknowledge that the virus is indeed airborne in aerosols, not droplets. Many studies show that as people moved indoors for the fall and

that only a few places around the city are doing what it takes to have truly safe air. I’ve also found that a small number of sites are dramatically worse than others, and they might be a good place to start to focus our efforts.

A call to action In addition to getting everyone vaccinated, the government should do the following: • Seriously enforce the mask mandate. If everyone wore an N95 mask all the time, we could go about our business. • Reinstate, strengthen and enforce the emergency ventilation mitigations that were in place—but mostly ignored—last year. Eliminate the loopholes in compliance, force publicly visible real-time monitoring of air-quality parameters such as CO2, and require outdoor dining structures to be actually outdoors and open to fresh air. • Enforce the city’s own air ventila-

tion and filtration rules in schools. We are requiring every student to get vaccinated (good), but though the city purchased CO2 meters, classroom measurement is rare, and the air filters purchased are of questionable efficacy. • Require the Metropolitan Transportation Authority to have fans on all buses and subway cars set to high—something that essentially would cost nothing compared with the $350 million now spent on cleaning. By mandating the measurement of CO2 and the enforcement of serious ventilation and filtration laws in every indoor public space, classroom, restaurant, theater, office building and MTA asset, and by enforcing mask wearing, we can beat this and keep our economy growing. ■ Alexander Riccio is a software developer. He operates a CO2 tracking app used by volunteers around the world.

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8 | CRAIN’S NEW YORK BUSINESS | JANUARY 24, 2022

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OP-ED

We’ll fail to make the sale if we fail to make the pitch: let’s market NY around the globe

hile taxpayers invest millions each year in NYC & Company’s remarkably effective effort to draw visitors who eat in the city’s restaurants and buy tickets to Broadway shows, no bureaucracy has robustly taken up the cause of reaching out to foreign businesses. The pandemic has created new reasons for foreign businesses to establish footprints on our shores, but unless New York invests most substantially in marketing itself, most of these businesses will go elsewhere—and we’re likely to lose out on vast opportunities to grow our economy and spread wealth to underserved communities. Research that I helped lead at the behest of the Partnership for NYC tracks the extent to which the Big

FDI per resident; the Big Apple attracted a little more than $3,600 per head. Overseas transplants create jobs, drive exports and spur innovation by investing more intensively in research and development spending than local counterparts.

No one is marketing NY The problem isn’t that the five boroughs are less attractive or more expensive—we’re faltering because no one is marketing the Big Apple to overseas companies. London & Partners and World Business Chicago are laser-focused on attracting FDI. But no institution in New York meets that mission with nearly so much focus. The telecommunications revolution, combined now with the explosion of remote work, is rendering one of New York’s great competitive advantages—a diverse supply of talent and centralized office space— more obsolete. But perhaps even more concerning, the industries that represent the city’s economic future—technology and life sciences, among a handful of others—are only loosely associated with the five boroughs in the global public’s imagination. As I’ve discovered when surveying business

WE’RE LIKELY TO LOSE OUT ON VAST OPPORTUNITIES TO GROW OUR ECONOMY Apple is being outclassed. In a decade Singapore attracted $120 billion in foreign direct investments. London boasted $65 billion. New York attracted a mere $30 billion. Chicago attracted nearly $7,900 of

leaders around the world, too many of the world’s young entrepreneurs and executives view the Big Apple as a center for finance and fashion, but little else— not to mention the distorted perception they have of the outer boroughs. To establish New York’s place as best in class, we should send more robust delegations (boasting more impressive displays) to trade shows and develop savvier campaigns online. We should set up satellite marketing offices in the world’s commercial hubs.

Put out welcome mat Finally, we need to demonstrate to the world that New York will provide a robust “concierge service” for businesses interested in setting up shop in the five boroughs, which the New York City Economic Development Corp. already provides with award-winning programs. Beyond serving businesses that have already “swiped right” on New York, however, we need to lure those still playing the field. Wouldbe investors should know about the welcome mat available to them

ISTOCK

BY GIANLUCA GALLETTO

here, or they’re liable to put down roots elsewhere. In a nutshell, we risk failing to make the sale for failing to make a pitch. To maintain its place in the global hierarchy, New York must begin making a strong case for itself across the globe in clear and

convincing terms. ■ Gianluca Galletto is an advisor on international business development and urban innovation and former Director of International Affairs at the New York City Economic Development Corporation.

OP-ED

For the first time, New York has a City Council that looks and sounds like the city it serves

or the first time New York has a female-majority City Council, one that looks and sounds like the city it serves. It will transform young women’s idea of what political leadership looks like at a crucial moment for our city and the country. Thirty-one women—more than twice the number before the November election—make up the council majority. Forty-nine council members voted to make Adrienne Adams council speaker, making her the first Black woman to hold the role.

parents expected me to be a doctor until I went to Brooklyn College, that makes a huge difference to my outlook. Especially because I serve on my own local community board. New York politics has been a boys’ club for too long. Growing up, too many boys in my classes were encouraged to see themselves as political leaders. Too many girls like me were encouraged to consider “safer” options. My parents saw medicine as one of the few areas where I could have an impact. They thought it was the only career path worth pursuing. It took some time for me to convince them otherwise, and that only happened after my mentors showed me politics is a viable career choice for me. We’re talking about building a pipeline of young women by changing society’s definition of what a political leader looks like. New York City might consider itself the great melting pot, but no woman has ever served as mayor. We don’t have women in any citywide elected

IT’S VITAL THAT MORE WOMEN RUN FOR OFFICE, LEAD CAMPAIGNS, AND WIN Before rising to the speakership, Adams started as a member of her Queens community board. For me, as a 25-year-old New Yorker of Pakistani descent who grew up in Gravesend, Brooklyn, and whose

position. Our new mayor, Eric Adams, initially backed a man for the speaker’s job. It took 24 women of the 33 council members to endorse Adrienne Adams to check that power, and it’s a good sign for the health of our democracy.

Diversity matters Shahana Hanif is the first Muslim elected to the council even though more than 750,000 Muslims live in the city. She is the first female council member to represent her district in Brooklyn. It’s exciting to see Hanif showing young Muslim women in New York they have a place in the council chambers. Diversity of representation also matters. Lynn Schulman, council member in Queens, is the first openly lesbian Jewish woman on the council. Jen Gutierrez in Brooklyn just gave birth, casting her vote for speaker remotely.

ADAMS

NEW YORK CITY COUNCIL

BY ZUNERA AHMED

Hanif of District 39, Nantasha Williams of District 27 and Mercedes Narcisse of District 46 are the first women to represent their respective districts. My council race, meanwhile, had no women running, even though it’s proven that women make more

effective legislators. It’s vital that more women run for office, manage campaigns, and win. ■ Zunera Ahmed is a board member and former New York City fellow with Ignite, a young women’s political leadership organization.

Write us: Crain’s welcomes submissions to its opinion pages. Send letters to letters@CrainsNewYork.com. Send op-eds of 500 words or fewer to opinion@CrainsNewYork.com. Please include the writer’s name, company, address and telephone number. Crain’s reserves the right to edit submissions for clarity. JANUARY 24, 2022 | CRAIN’S NEW YORK BUSINESS | 9

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INSTANT EXPERT

How the governor hopes to broaden the state’s internet access HOW MUCH WILL IT COST?

Hochul plans to fund ConnectALL with $300 million from the state budget, and at least $345 million in federal funding. The state also expects hundreds of millions more in federal dollars from the Infrastructure Investment and Jobs Act, approved by Congress last year, to bring the total to $1 billion. A central part of the effort relies on signing up New Yorkers for the federal Affordable Connectivity Plan, a new benefit created by the infrastructure bill. It offers $30 per month toward internet services for families with incomes below 200% of federal poverty guidelines or who qualify for federal assistance programs, such as Medicaid or SNAP.

BLOOMBERG

A new $1 billion broadband plan called ConnectALL from Gov. Kathy Hochul will use a combination of federal subsidies and state grants to close large gaps in access to high-quality internet. The governor's plan targets what's known as the digital divide. More than 1 million households—about 14% of HOCHUL the state—are without a subscription to broadband in their homes, according to a report from state Comptroller Thomas DiNapoli, either for lack of access or the ability to afford plans that average $50 per month. The effort comes as a 2021 state law aimed at this issue has been placed on hold by federal courts. The law would require internet service providers to offer a $15 monthly broadband plan to low-income families. In June, a trio of telecom groups successfully blocked the state’s plan and set off a federal appeals process that hangs over the DINAPOLI state effort and may have larger national implications.

NEWYORKSTATECOMPTROLLER

THE ISSUE

GOVERNORKATHYHOCHUL/FLICKR

BY RYAN DEFFENBAUGH

WHO WILL BENEFIT

Attorney General Letitia James, who is defending the state’s $15 broadband law against the telecom industry challenge, quickly appealed the JAMES judge’s decision. The case is under review in the Second Circuit Court of Appeals. In a brief filed with the court in November, James wrote that the “district court’s sweeping field-preemption ruling relied on the startling and unjustified proposition” that states can not regulate broadband providers because they offer interstate services. That proposition has caught the attention of other states as well. A bipartisan mix of 22 attorneys general—including California, Nevada, Pennsylvania and Nebraska—last month filed an amicus brief in support of New York’s appeal. The telecom groups who filed the lawsuit are scheduled to reply by next month, though the process will likely drag on longer than that. Richard Berkley, executive director of the Albany-based New York’s Utility Project, said that, in the meantime, the state is wise to find ways to expand access to internet options. There are still large swaths of the state with only a single internet provider, and some that lack broadband entirely, he said.

BLOOMBERG

WHAT’S NEXT

THE FEDERAL AFFORDABLE CONNECTIVITY PLAN OFFERS $30 PER MONTH TOWARD INTERNET SERVICES FOR INCOME-ELIGIBLE NEW YORKERS

The state’s role is to invest in marketing and outreach to get New Yorkers enrolled in the program. A pandemic-focused internet subsidy from the federal government in 2021 enrolled only about 600,000 New York households, which the state estimated is just 30% of qualified families. While many of those households who enrolled in that program will roll over into the new one, the state has pledged to reach more people this time around. That pledge was praised by Valerie White, executive director of LISC NYC, a nonprofit that advocates for investment in underserved communities. She noted that a main way to reach people during the pandemic is online, yet the people who would benefit most from the broadband program likely have limited or no internet access. Along with signing up New Yorkers for the federal plan, Hochul expects to harness federal infrastructure bill money— expected to land in the hundreds of millions—to offer grants to projects that build broadband infrastructure. That could include helping municipalities build neutral fiber networks, which boost competition by allowing multiple internet providers to tap into the network. The plan also calls for building broadband in all state affordable housing and for developing a detailed map showing internet options statewide.

SOME BACKSTORY

Missing in the governor’s toolkit is a new law that digital equity advocates had previously hailed as a breakthrough. The state’s Affordable Broadband Act, approved in April 2021, would have required internet service providers to offer a $15-per-month plan to low-income families, with similar criteria to the new federal benefit. Telecom industry groups sued the same month the bill was approved, arguing that the state did not have the right to regulate broadband rates, and that the law could put smaller internet providers out of business. U.S. Eastern District Court Judge Denis Hurley sided with the industry and blocked the law’s implementation in June. Jason Gough, a spokesman for the governor, said in an email that the ConnectALL plan is “focused on ensuring all eligible households obtain the up to $30 per month discount now available from the federal government.” The New York State Telecommunications Association—among the groups who successfully challenged the $15-per-month law—offered support for the ConnectALL plan.

10 | CRAIN’S NEW YORK BUSINESS | JANUARY 24, 2022

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THANK YOU We are grateful to the New York brokerage community for your support in helping us lease over 775,000 SF in 2021.

Douglas Durst

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BROWN HARRIS STEVENS Joel Burris CBRE James Ackerson Laurence Briody Jr. Jason Gorman Robert Hill Sinclair Li Michael Liss Lewis Miller Patrick Moroney Joshua Pernice Clyde Reetz Craig Reicher Zachary Weil Daniel Wilpon Rob Wizenberg Ross Zimbalist COLLIERS INTERNATIONAL Taylor Bell Clint Dewey Sam Einhorn Eric Ferriello Michael Thomas Robert Tunis COMPASS Jason Goode

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CN020599.indd 1

1/18/22 9:31 AM

THE LIST LARGEST MERGERS AND ACQUISITIONS New York–area deals announced last year, ranked by deal value AMANDA.GLODOWSKI@CRAINSNEWYORK.COM

1 2 3 4 5 6 7 8 9 10 11

TARGET LOCATION

BUYERS/INVESTORS LOCATION

DATE ANNOUNCED

DATE CLOSED

Warner Media LLC

Discovery Inc.

Manhattan

05/17

Suez SA

Ardian, Global Infrastructure Management LLC

Paris

Manhattan

$36,006 Utilities

01/17

Medline Industries Inc.

Hellman & Friedman LLC, The Carlyle Group Inc., Blackstone Inc., GIC

$32,000 Health care supplies

06/05

Advent International Corp., GIC, Permira Advisers LLC 1

$20,862 Systems software

11/05

San Jose, Calif.

CyrusOne Inc.

KKR & Co., Global Infrastructure Management LLC Manhattan

$15,639 Specialized REITs

11/14

Dallas

WM Morrison Supermarkets PLC

Clayton, Dubilier & Rice LLC

06/14

10/27

Bradford, England

Manhattan

$14,072 Food retail

QTS Realty Trust Inc.

Blackstone Inc., Blackstone Real Estate Income Trust Operating Partnership

$8,573 Specialized REITs

06/07

08/31

EQT Partners AB, Goldman Sachs Asset Management LP

$8,500 Life sciences tools and services

07/02

11/15

Northfield, Ill.

McAfee Corp.

Overland Park, Kans.

Parexel International Corp. Newton, Mass.

DEAL VALUE, PRIMARY INDUSTRY IN MILLIONS OF TARGET BUSINESS

$103,966 Movies and entertainment

Manhattan

Insight Venture Management

Irvine, Calif.

Manhattan

Acceleron Pharma Inc.

LLC 2

$8,021 Research and consulting services

02/04

06/04

Merck Sharp & Dohme Corp.

09/29

11/19

Cambridge, Mass.

Kenilworth, N.J.

$7,590 Biotechnology

Incumbent local exchange carrier business in 20 states of Lumen Technologies Inc.

Apollo Global Management Inc.

$7,500 Alternative carriers

08/03

The Michaels Cos.

Apollo Global Management Inc. Manhattan

$7,479 Specialty stores

03/02

04/14

Irving, Texas

Inovalon Holdings Inc.

Insight Venture Management LLC, 22C Capital LLC 3 Manhattan

$7,433 Health care technology

08/19

11/24

Bowie, Md.

Athene Holding Ltd.

Apollo Global Management Inc. Manhattan

$7,230 Life and health insurance

03/08

Bermuda

McGraw-Hill Education Inc.

Platinum Equity LLC Los Angeles

$6,742 Publishing

06/15

07/31

Manhattan

Arena Pharmaceuticals Inc.

Pfizer Inc.

12/12

Park City, Utah

Manhattan

$6,728 Biotechnology

W.R. Grace & Co.

Standard Industries Inc.

04/26

09/22

Columbia, Md.

Manhattan

$6,727 Specialty chemicals

Extended Stay America Inc.

Blackstone Inc., Starwood Capital Operations LLC Manhattan

$6,340 Hotels, resorts and cruise lines

03/14

06/16

Charlotte, N.C.

Signature Aviation

Cascade Investment LLC, Global Infrastructure Management LLC, Blackstone Infrastructure Advisors LLC, Blackstone Core Equity Management Associates LLC

$6,199 Airport services

02/05

06/01

T-Mobile Netherlands Holding BV

Apax Partners LLP, Warburg Pincus LLC Manhattan

$6,038 Wireless telecommunication

09/07

The Hague, Holland

Home Partners of America Inc.

Blackstone Real Estate Income Trust Inc.

06/22

Chicago

Manhattan

$6,000 Real estate services

Weingarten Realty Investors

Kimco Realty Corp. Jericho, N.Y.

$5,760 Retail REITs

04/15

08/03

Houston

BA Sports Nutrition LLC

The Coca-Cola Co.

02/19

11/01

Queens

Atlanta

$5,600 Soft drinks

Portfolio of equity and debt interests in AIG affordable housing properties

Blackstone Real Estate Income Trust Inc.

$5,100 Real estate operating companies

07/14

12/16

Cloudera Inc.

Clayton, Dubilier & Rice LLC, KKR & Co. Manhattan

$5,002 Application software

06/01

10/08

Santa Clara, Calif.

Oath Inc./Verizon Media Netherlands BV

Apollo Global Management Inc., LionTree Advisors LLC

$5,000 Cable and satellite

05/02

09/01

United States

Manhattan

Teekay LNG Partners LP

Stonepeak Partners LP Manhattan

$4,620 Oil and gas storage and

10/04

Bermuda

Spark Infrastructure Group

KKR & Co., Public Sector Pension Investment Board 4 Manhattan

$4,614 Electric utilities

07/15

11/29

Sydney, Australia

Atlantic Aviation FBO Inc.

KKR & Co.

Manhattan

$4,475 Airport services

06/07

09/23

Plano, Texas

Hertz Global Holdings Inc.

Knighthead Capital Management LLC, Apollo Capital Management LP, Certares Management LLC

$4,400 Trucking

03/02

Manhattan

WARNER MEDIA #1

QUICK REBOUND After a slow 2020, the total value of all M&A deals in the New York area skyrocketed last year. Total value (in billions) 1,200

Manhattan

CoreLogic Inc.

London

$1,005 1,000

800

600

400

2017

Manhattan

The number of transactions in the New York area jumped 61% last year, far outpacing pre-pandemic years as well. Number of deals 8,000

7,926 services

7,000

6,000

5,000

United States

Estero, Fla.

Manhattan

2021

YEAR OF THE DEAL

Manhattan

20 21 22 23 24 25 26 27 28 29 30

RAN

Manhattan

United States

12 13 14 15 16 17 18 19

TRENDS

AP PHOTO

RANK

4,000

2017 transportation

2021

2,370 6,282

35 36 37 38 39 40

41 42 43 44 45 46 47 48 49 50 51 52 53 54 55

NUMBER of deals in which a city firm was the target—a 48% increase from 2020.

Sourc New Y

NUMBER of deals in which a city firm was the buyer—a 66% increase from 2020.

terms Pens includ Hend Ltd., Fount di Sa Also

12 | CRAIN’S NEW YORK BUSINESS | JANUARY 24, 2022

P012_P013_CN_20220124.indd 12

31 32 33 34

1/20/22 3:22 PM

COM

ons)

2021

ear,

eals

2021

als firm a

AP PHOTO

31 32 33 34

TARGET LOCATION

BUYERS/INVESTORS LOCATION

BlueTriton Brands Inc.

DATE ANNOUNCED

DATE CLOSED

One Rock Capital Partners LLC, Metropoulos & Co.

$4,300 Soft drinks

02/16

03/31

Oak Hill Advisors LP

T. Rowe Price Group Inc.

$4,200 Asset management and custody

10/28

12/29

UDG Healthcare

Clayton, Dubilier & Rice LLC

$4,160 Health care services

05/12

08/16

Grab Holdings Ltd.

BlackRock Inc., Morgan Stanley Investment Management Inc., Fidelity Management and Research Co., T. Rowe Price Associates, Nuveen Fund Advisors, Altimeter Capital Management 5

$4,040 Internet and direct marketing retail

04/13

12/01

Real estate assets of the Nevada Property LLC

Stonepeak Partners LP; Cherng Family Trust

$4,025 Real estate operating companies

09/27

Real estate assets related to Aria Las Vegas and Vdara Las Vegas

Blackstone Real Estate Income Trust Inc.

$3,890 Real estate operating companies

06/30

09/28

WPT Industrial Real Estate Investment Trust

Blackstone Real Estate Income Trust Inc.

$3,797 Industrial REITs

08/08

10/20

Investors Bancorp Inc.

Citizens Financial Group Inc.

$3,728 Regional banks

07/28

Hexion Holdings Corp.

American Securities LLC

$3,619 Specialty chemicals

12/20

Flipkart Private Ltd.

Franklin Resources Inc., Walmart Inc., Tiger Global Management LLC, Antara Capital LP, Willoughby Capital Holdings LLC 6

$3,600 Internet and direct marketing retail

07/12

Aware Super Ltd., Macquarie Infrastructure and Real Assets

$3,569 Integrated telecommunication

02/08

06/25

San Diego

Veritas Capital Fund Management LLC, Evergreen Coast Capital Corp.

$3,493 Aerospace and defense

02/07

05/25

Columbia Property Trust Inc.

Pacific Investment Management Co.

$3,461 Office REITs

09/07

12/07

Sempra Global

KKR & Co.

$3,370 Utilities

04/04

10/01

$3,222 Residential REITs

12/20

$3,210 Real estate operating companies

09/06

Stamford, Conn. Manhattan Dublin

Singapore

Manhattan Baltimore

Manhattan

DEAL VALUE PRIMARY INDUSTRY IN MILLIONS OF TARGET BUSINESS

banks

TRENDS

Manhattan

35 36 37 38 39 40

United States

Canada

Short Hills, N.J.

Columbus, Ohio Singapore

Manhattan

Providence, R.I. Manhattan

MCGRAW-HILL EDUCATION #15

FRAGMENTED LANDSCAPE M&A deals were scattered across industries last year, with no single area dominating. Industry

Number of deals

Real estate operating companies 4

Internet and direct marketing retail

Manhattan

41 42 43 44 45 46 47 48 49 50 51 52 53 54 55

Vocus Group Ltd.

Melbourne, Australia

Cubic Corp.

Manhattan San Diego

Manhattan

services

Newport Beach, Ca. Manhattan

Manhattan

Wellness infrastructure business of DigitalBridge Group Inc.

Highgate Hotels LP, Aurora Health Network

Allstate Life Insurance Co./ Allstate Assurance Co.

Blackstone Inc.

John Laing Group

KKR & Co.

$3,046 Construction and engineering

05/19

09/22

Hygo Energy Transition Ltd.

New Fortress Energy Inc.

$3,015 Oil and gas storage and

01/13

04/15

United States London

Bermuda

Manhattan

$3,050 Life and health insurance

Manhattan

01/26

11/01

Manhattan

Investments 7

transportation

Universal Music Group Inc.

Pershing Square Capital Management LP, Pershing Square Holdings Ltd.

$2,800 Movies and entertainment

08/10

Goldman Sachs Asset Management LP, Baron Capital Group Inc., The ATP Group 8

$2,750 Electrical components and

06/09

Latin American business of Lumen Technologies Inc.

AustralianSuper Ltd., Stonepeak Partners LP

$2,735 -

07/25

Meredith Holding Co.

Dotdash Media Inc.

$2,700 -

10/06

12/01

EMEA food and consumer packaging business of Crown Holdings Inc.

KPS Capital Partners LP

$2,678 Metal and glass containers

04/08

08/31

Northvolt AB Stockholm

United States

Des Moines, Iowa

Switzerland

Movies and entertainment 2

Utilities

Oil and gas storage and transportation

$3,000 Internet and direct marketing retail

Soft drinks 2

Specialized REITs

KKR & Co., DCP

Santa Monica, Calif.

Manhattan

Life and health insurance

Hunan Xingsheng Youxuan Electronic Commerce Co. Changsha, China

Biotechnology

Manhattan

Bluerock Residential Growth REIT Inc. Blackstone Real Estate Advisors

United States

Airport services

02/19

Specialty chemicals 2

Manhattan

Manhattan Manhattan

equipment

41,216

NUMBER of U.S. deals announced last year—a 31%

jump from 2020.

Source: S&P Global Market Intelligence

Source: S&P Global Market Intelligence, with additional research by Amanda Glodowski. New York area includes New York City and Nassau, Suffolk and Westchester counties in New York, as well as Bergen, Essex, Hudson and Union counties in New Jersey. List includes announced transactions for which terms were disclosed and that were not canceled and in which a buyer or target was based in the New York area. In some cases only partial interest in the target was acquired. 1- Nonlocal buyers include Canada Pension Plan Investment Board, Abu Dhabi Investment Authority and Crosspoint Capital Partners LP. 2- Nonlocal buyers include Stone Point Capital LLC. 3- Nonlocal buyers include Nordic Capital. 4- Nonlocal buyers include Ontario Teachers’ Pension Plan Board 5- Nonlocal buyers include Temasek Holdings (Private) Limited, Permodalan Nasional Berhad, Sinar Mas Group, PT Djarum, Dragoneer Investment Group LLC, Janus Henderson Investors, Mubadala Investment Com. PJSC. Also involves individual investors. 6- Nonlocal buyers include GIC, Canada Pension Plan Investment Board, Khazanah Nasional Berhad, Tencent Holdings Ltd., Qatar Investment Authority, SoftBank Investment Advisers (UK) Ltd., DisruptAD 7- Nonlocal buyers include China Evergrande Group, Sequoia China Investment Management LLP, Temasek Holdings Limited, FountainVest Partners, Primavera Capital Group, Tencent Holdings Ltd. investment arm. 8- Nonlocal buyers include Volkswagen AG, Baillie Gifford & Co., AB Stena Metall Finans (pub.), Omers Private Equity, Compagnia di San Paolo, AMF Pensionsförsäkring, PCS Holding, KIC Innoenergy SE, Stichting IMAS Foundation, Scania Growth Capital, Norrsken Foundation endownment arm, Bridford Investments Ltd., 4 to 1 Investments. Also includes individual investors. 9- Nonlocal buyers include Ayar Third Investment Co.

OAK HILL ADVISORS

of ea

RANK

OAK HILL ADVISORS L.P. #32

JANUARY 24, 2022 | CRAIN’S NEW YORK BUSINESS | 13

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ASKED & ANSWERED

INTERVIEW BY BRANDON SANCHEZ

WHO SHE IS President and chief executive officer of Win (formerly Women in Need); former speaker of the City Council

or the first time in New York history, women occupy a majority of seats on the City Council, a milestone that recalls the elevation of Christine Quinn to the speakership in 2006. At the same time, the pandemic has cast a spotlight on the ways working-class women are burdened with caregiving duties and financial precarity. Quinn—who, since leaving the City Council in 2013, has become president of Win, a family shelter provider—says city politics are still difficult for women, but things are getting better. What challenges do women in New York politics face?

As we all know, New York is a tough place. We think of it as the most progressive place in the world, so an assumption is made that things would be easier for women, people of color or LGBTQ people. But that’s not true. The facts bear that out—no woman mayor, etc. That said, the women dealing with this are New Yorkers, so they’re just as tough. They’re moving forward in the face of constituents who say things like, “You look so much prettier in person” as opposed to asking about their position on a bill.

How do you think the new makeup of the City Council will change governance in the city? When you represent people who haven’t had a seat at the table, you seek to write bills and policies that are going to uplift those who have been forgotten. In this new City

GREW UP Glen Cove, Long Island RESIDES Chelsea, Manhattan EDUCATION Bachelor’s in urban studies and education, Trinity College SNICKERS OR MILKY WAY? “Milky Way. You get the full caramel situation; it’s not blocked by the nuts.” FAMILY TIME “I spent a lot of time over the holidays reading children’s books with my great-nephew and great-niece,” Quinn said. “My favorite book as a child was called Santa Mouse that my mother gave me. We read it 12 months a year.” MOTHER’S WISDOM “I have a sister who’s 10 years older than I am. Our mother raised us and didn’t say, ‘You can be anything you want.’ She said, ‘You will be what you want to be, and whatever it is, you will be incredibly successful.’ So for a lot of our lives, my sister and I moved through them not noticing discrimination because our mother had instilled in us no choice.”

Council, so many are women of color that I think it’s going to be very exciting. With the Covid epidemic having hit poor people and people of color harder than anyone else, with 25% of the women in the shelters that I run having lost their jobs because of the pandemic, we need leaders who are going to focus

on their needs in their legislation and make sure that the economy we have when the pandemic is over is different than the one we had before, that it is more inclusive and more equitable.

How would you grade the city’s handling of the pandemic?

It’s the hardest of times, and I’m not going to criticize Mayor Bill de Blasio or Mayor Eric Adams. I think de Blasio actually deserves a lot of credit for having gotten vaccinations and testing out there. He put in place a very robust tracing program to identify people who’d been exposed. That said, when the schools went remote, the administration of Mayor de Blasio made a promise to get iPads to children in NYCHA housing and in the shelters, and they absolutely forgot about children in the shelters.

What should the city prioritize this year?

As it relates to Covid, we want to do everything we can to keep schools open and safe. It’s also critical that the pandemic doesn’t create more homelessness. It’s an opportune time for the Department of Small Business Services, the Economic Development Corp. and others to come together with job-training initiatives that are connected to industries that have significant numbers of vacancies.

How does the political scene now stack up against when you left the City Council?

It’s clear to me that New York is far less sexist and far less homophobic than it was when I started in politics. Of the two, the issue that has decreased more is the homophobia. ■

BUCK ENNIS

CHRISTINE QUINN Win

DOSSIER

CRAIN’S NEW YORK BUSINESS 2022

WOMEN IN CONSTRUCTION, DESIGN & ARCHITECTURE Crain’s New York Business’s 2022 Notable Women in Construction, Design and Architecture recognizes top women in construction, design or architecture for using their skills to advance their organization or professional field of expertise.

SUBMIT TODAY:

CrainsNewYork.com/women-construction-arch Nominations close on January 28, 2022 14 | CRAIN’S NEW YORK BUSINESS | JANUARY 24, 2022

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TRANSPORTATION

Why doesn’t the subway have barrier doors? Some call on MTA to take action after fatal push

ome are calling on the Metropolitan Transportation Authority to install platform barrier doors, also known as platform screen doors, in the subway after a homeless man allegedly pushed a woman onto the tracks the morning of Jan. 16 in the Times Square station. Michelle Go, 40, a senior manager at Deloitte Consulting, died at the scene. A Change.org petition has been circulated urging action on doors that could have prevented her death. Although numerous transit systems in other global capitals have doors of some kind, New York officials appear to continue to prioritize other upgrades to the century-old subway system. Here, Crain’s answers some questions about the benefits and feasibility.

Which cities have the doors? Many European and Asian cities, including Delhi, Hong Kong, Paris and Seoul, feature platform doors in at least some of their train stations. In South Korea, where subway suicides have been a concern, the installation of platform doors has reduced such incidents. The London Underground features some platform doors to screen passengers from the tracks. Most recently, the Crossrail project’s Elizabeth line, set to open this year, included barriers. The doors dou-

ble as information screens that display destination details. In New York, the AirTrain at John F. Kennedy International Airport uses platform screen doors.

What are the (de)merits? Besides preventing people from falling or jumping onto train tracks, platform doors keep detritus off the tracks and thus can prevent some trash-related fires. Some critics have argued that installing platform barriers would take years, and other upgrades to the system are more pressing. “We are talking about a capital project likely exceeding $10 billion,” said Nicole Gelinas, a fellow at the Manhattan Institute. “The MTA has never costed it out. [It’s] competing with other, longer-term priorities such as elevators and new lines.” “You can’t really do subway platforms throughout the system until you’ve modernized the signals and automated the trains, as the trains have to line up exactly with the new platform doors,” Gelinas added. “The doors also need constant maintenance, especially in a New York environment where people are inevitably going to try to force them open as well as continually hold them open.” Transportation historian Larry Penner was similarly bearish, saying, “What about the impacts on air circulation and track access for maintenance workers, along with removal of garbage from platform

BLOOMBERG

BY BRANDON SANCHEZ

bins when the overnight garbage trains come in for underground stations?”

Has New York ever tried it? The idea has been pitched for decades, with little action taken. In 2017 the MTA said it planned to test platform doors at an L train station, but the initiative fizzled. In recent years—especially under the leadership of Andy Byford, former New York City Transit Authority president—city transit officials have focused more on in-

creasing the accessibility of the system for subway riders by adding elevators. Recent events have renewed calls for protective barriers, however. In

“IF THEY GO OUT OF SERVICE, SO DOES THE ENTIRE PLATFORM” November acting MTA Chairman Janno Lieber told the New York Post that delays caused by “persons on roadbed” increased that month by

500, to a total of 1,542. But platform doors come with their own set of problems, according to Lisa Daglian, executive director of the Permanent Citizens Advisory Committee to the MTA.. “With so many different vehicle classes, alignment with cars would be very difficult. They tend to be heavy and could require major station renovations. If they go out of service, so does the entire platform,” Daglian said. “And we know that some New Yorkers like to hold doors for other people.” ■

REAL ESTATE

BY NATALIE SACHMECHI

rincess Rita Boncompagni Ludovisi, a former New York City real estate broker, is battling the children of her late husband, Prince Nicolò Boncompagni Ludovisi, over their respective inheritances and the future of her palatial home, the Villa Aurora in Rome. If the Carvaggio-decorated, nine-bedroom, nine-bathroom, two-elevator home sells for its ask-

The 185-word item in the April 1, 1996, issue of Crain’s included a photo of the future princess, who was known then as Rita Jenrette. In the article, she discussed her vast social network and how she started her own real estate business. Somehow the prince, who descended from Roman nobility, came across the story. “He’d read an article about me in Crain’s, and then a mutual friend got in touch and said: ‘You must come to Rome. There’s this prince who wants to put a hotel on one of his properties outside the city,’ ” she told the Guardian. It was love at first sight, she told the Guardian, noting that a psychic had told her she would marry a European and live in Europe. “I’d kind of forgotten about it, but then there he was,” she said. “He was a brilliant man in every way, and the least important part about him was being a prince.” By 2009 Jenrette was an Italian princess. It wasn’t the first dramatic turn

“HE’D READ AN ARTICLE ABOUT ME, THEN A MUTUAL FRIEND GOT IN TOUCH” ing price of $532 million, it will be one of the most expensive homes ever sold in the world.

É così romantico The love story of its latest occupants traces its origin to a short news story in the pages of Crain’s, as a Guardian report revealed recently.

for Jenrette, now 72, who still lives in the villa and is fighting to stay there as part of a feud with the sons of her late husband. She was married to disgraced U.S. Rep. John Jenrette until 1981, when he was convicted of bribery and conspiracy for accepting a $50,000 bribe in the Abscam investigation into corruption by elected officials. After that marriage ended, she went on to work as an actress, posed for Playboy twice and worked for billionaire Ray Dalio at Bridgewater Associates. She then made the transition into real estate, brokering nearly $1 billion in deals before 2001. That included former President Donald Trump’s $800 million acquisition of

BUCK ENNIS

A Crain’s story played matchmaker for a Roman princess

the General Motors building on Fifth Avenue.

Split proceeds What first attracted the prince to her—perhaps her bleach-blonde locks or her status as a New York power broker—is unclear. But after

a decade of marriage, he died in 2018, and his will is being contested by his children. The Villa Aurora was to be sold at auction recently, but it attracted no bidders. If it sells at a future date, the proceeds are to be split between the princess and her stepchildren. ■

JANUARY 24, 2022 | CRAIN’S NEW YORK BUSINESS | 15

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HEALTH CARE

BY SHUAN SIM

t the turn of last year Jovanna Rivera went for a routine mammogram. She was shocked to learn there was a lump in her breast that needed further investigation. Rivera, 46, had scheduled a biopsy with University Diagnostic Medical Imaging Jan. 13, which was covered by her insurance, Healthfirst. But three days before the appointment, the medical biller from the Bronx received a call from the imaging center informing her the facility had suddenly been dropped from in-network coverage, and couldn't proceed with her appointment. “Because of this, I have to wait longer to find another appointment. It's made me anxious,” Rivera said. Healthfirst did not inform her of the change in-network coverage and calling the insurer's hotline had not been helpful. The only assistance provided was a list of ra-

spoke with agreed, having had their own experiences with notices of nonrenewal of contracts with Healthfirst over the past year. Those practices also say they have been subject to claims audits known as prepayment notices—where the health plan holds up payment as it requests additional documentation—that led to unpaid reimbursements. Collectively, these actions have led to disruption of patient care and longer wait times and in turn, practices that continue to accept Healthfirst have been overwhelmed as other options are eliminated, affected entities said.

Prepayment and non-renewal notices Last summer, Healthfirst sent over 200 prepayment notices to UDMI, requesting additional records for claims—a practice it had not done with the Bronx-based facility, Prager said. After responding with the requested documents, the claims, totaling about $200,000, were denied on technicalities, she noted. Distinguished Diagnostic Imaging, also in the Bronx, had a similar experience starting in 2019, where prepayment notices from Healthfirst started flooding the facility, said director Joel Reisman. His interactions with third-party auditors Healthfirst was using— Cotiviti and Optum—led to frustrating exchanges, contradicting information, and eventually, denied claims, Reisman said. His company spent about $300,000 in legal fees to recover up to $2 million in unpaid claims. “I stopped the fight in the middle

“I HAVE TO WAIT LONGER TO FIND AN APPOINTMENT. IT’S MADE ME ANXIOUS.” diology clinics in the five boroughs, according to Rivera. “They didn’t try to find a place for me,” she said. “They basically said ‘you're on your own.’ ” Rivera's experience has become increasingly common, especially over the past year, as the Tribeca-based insurer has been cutting providers out of its coverage network, said Emily Prager, chief financial officer of UDMI. Other imaging and diagnostic providers as well as doctors Crain’s

of 2020,” Reisman said. “My business suffered for two years. I decided to make peace and move on.” Both imaging providers had worked with Healthfirst for nearly a decade and had not changed the way they sent claims, Prager and Reisman said. “I don't know why they’re suddenly flagging our claims for prepayment notices,” Prager said. After the cycle of prepayment notices and denied claims, providers were made aware they were no longer in-network with Healthfirst. The termination represented a big hit to the providers. When Healthfirst dropped DDI, patients from that insurance represented about 35% of its business, Reisman said. For UDMI, it was about 10%, according to Prager. The pattern extended beyond imaging providers; doctors were dropped from Healthfirst coverage, too. Dr. Oksana Berkovich, an internist, said she received mail from Healthfirst in October that the private practice she worked at in the Bronx would not be renewed. Berkovich said her patients who had been covered by Healthfirst were not informed of the coverage change. Her practice took on the responsibility of sharing the news with her patients, helping them find new health plans that would cover her practice, or doctors who could accept Healthfirst. “It’s a lot of manpower and out of pocket money we had to pay to let our patients know,” she said.

Disrupted care Providers said they tried to reach out to Healthfirst to offer transition of care for affected patients, but even those efforts had limited reach. In Rivera's case, there was a

BUCK ENNIS

Providers say Healthfirst left claims unpaid, dropped them from network with no explanation

clause that allowed the possibility of 90 days of continuation of care if UDMI agreed to work with Healthfirst. Prager said a general counsel from Healthfirst eventually rejected UDMI's offer to proceed with the biopsy, saying a one-off biopsy does not constitute continuation of care. A national mobile imaging service provider had about $500,000 in unpaid claims from Healthfirst, when it was dropped from the network. It is still trying to obtain outof-network authorization for about 70 affected patients, said a representative who wishes to remain unnamed due to concerns of retaliation. The representative has yet to hear from Healthfirst. A Healthfirst spokeswoman said that like other health plans, it regularly evaluates its network to ensure that it is able to efficiently offer quality care. She confirmed a recent evaluation led to nonrenewal of contracts of several providers on Jan. 1, and that Healthfirst has sent timely notices of those changes, but did not provide specific numbers

on how many contracts were discontinued. “As required by federal and state law, we also routinely monitor provider billing practices to detect possible billing aberrations or unusual billing patterns,” the spokeswoman said. Healthfirst processed more than 37 million claims, and on average about 1% are flagged, she said, adding that when there are unintended billing anomalies, Healthfirst works with providers to educate them on proper billing practices. “If providers do not cooperate with these efforts, or do not submit documentation required by regulations, it is incumbent upon us to remove that provider from our network and we do so in accordance with the terms of their provider contract.” As for Rivera, she managed to find another imaging provider to address that discovered lump, albeit in February. “I’m not sure if I will renew with Healthfirst,” she said. “I’ll wait and see if further hiccups happen.” ■

POLITICS

Hochul outpaces Democratic field with record-breaking $21.6M fundraising haul; Suozzi and Williams are well behind

ov. Kathy Hochul’s campaign announced a record-breaking $21.6 million in donations since August, positioning her as a formidable force ahead of the June 2022 Democratic primary. Hochul’s campaign said it raised the money between Aug. 13 and Jan. 14, with 87.6% of donors residing in the state and donations received from all 62 New York counties. The campaign added that the amount is the largest contribution total for any single filing period in New York history, surpassing the $12.8 million raised by former Gov. George Pataki in 2002. The campaign said it has $21.3 million cash on hand.

Jay Jacobs, chairman of the state Democratic Party Committee, said Hochul’s fundraising numbers, together with recent polling, indicate that she has broad-based popularity across the state.

Hochul polling well, too A Siena College Research Institute poll released Tuesday showed Hochul with support of 46% of Democrats. She was followed by Public Advocate Jumaane Williams, at 11%, and Rep. Tom Suozzi of Long Island, at 6%. Roughly 24% of voters remain unsure or named another candidate. Another 12% said they would vote for former Mayor Bill de Blasio before he announced last week that he would not run. “She has support from the business community, the labor unions,

the community groups and from elected officials,” Jacobs said of Hochul. “She’s on track to do exceedingly well, not just in the primary but in the general election as well.” Suozzi announced that he raised more than $3.3 million in his first six weeks as a candidate. His campaign said he transferred $2.1 million from HOCHUL his congressional campaign account, giving him a total of $5.2 million. Williams reported raising just $222,000. His campaign did not respond to a request for comment. Suozzi’s team pulled no punches when asked about Hochul’s fundraising.

“That sounds like $21 million promises to her lobbyist buddies instead of standing up for everyday New Yorkers,” said Kim Devlin, a senior adviser to Suozzi. Suozzi has asked state Attorney General Letitia James to investigate Hochul, alleging misuse of state aircraft to attend fundraisers. He called on the governor to release her full schedule of campaign-related events. “Instead of doing the job of governor, Hochul has been focused on her politics and raising money from the same Albany lobbyists that stand in the way of ethics reform that she claims she intends to adAP PHOTO

BY BRIAN PASCUS

dress,” Suozzi said. “The attorney general must get to the bottom of this.” The Hochul campaign did not respond to a request for comment. Another campaign announcement also made waves: De Blasio said he will not run against Hochul. The former mayor’s name had been mentioned in some circles as a formidable opponent to the incumbent governor, especially with the Democratic-rich downstate vote in the five boroughs and his advantage in his home base of Brooklyn. “It’s unexpected because he’s always taken great risks and you can never count him out,” political consultant Hank Sheinkopf said. “But it’s very hard to beat incumbent governors in primaries. It rarely happens.” ■

16 | CRAIN’S NEW YORK BUSINESS | JANUARY 24, 2022

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PEOPLE ON THE MOVE

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

ACCOUNTING

HEALTH CARE

LAW

PROFESSIONAL SERVICES

TRANSPORTATION

CBIZ

COPE Health Solutions

Gibbons P.C.

Crowe LLP

Vantage Airport Group

CBIZ & Mayer Hoffman McCann CPAs, one of the nation’s top providers of accounting, tax and advisory services has Han promoted Frank Han to Managing Director specializing in corporate taxation, and Gail Roth to Managing Director in our Private Client Roth Service Group. Frank has worked on a wide variety of tax co-sourcing engagements and provided integrated services to process improvement that helps clients’ tax departments maximize their strategic value. He has extensive experience in providing tax services to multinational companies based in U.S. and foreign countries. Gail oversees the preparation and review of financial reporting and analysis for private corporations, trusts, small businesses and individuals.

Mitchell Corwin, CFA, is a Principal and the Chief Financial Officer of COPE Health Solutions. Mr. Corwin is a finance executive with over 20 years of experience, including senior roles guiding companies from vision and strategy to financial success; translating vision to growth, driving operational efficiencies, and managing risk, all with a view to delivering shareholder returns. He has expertise in fundraising, driving financial performance, pricing, negotiating contracts and managing risk.

Matthew J. Sinkman, most recently an Assistant Attorney General in the New York State Office of the Attorney General’s Environmental Protection Bureau, has joined the New York office of Gibbons P.C. as Counsel in the firm’s Environmental Group. In joining one of the region’s top-tier environmental law teams, he will expand the scope, reach, and profile of the firm’s New York-based environmental litigation, compliance, permitting, redevelopment, and transactional practices.

Meghan Burns was recently promoted to managing director in consulting services at Crowe LLP, a public accounting, consulting, and technology firm. She has been with the firm for over eight years. Burns will focus on developing, assessing, and implementing compliance and risk programs for global financial services clients. She received her bachelor of arts degree in history from Bucknell University and her juris doctorate from George Washington University School of Law.

Folasade (Sade) Olanipekun-Lewis, a candidate with strong working knowledge of both the airline and airport industries, joins Vantage Airport Group as Vice President of Operating and Community Partnerships. Ms. Olanipekun-Lewis will lead the development and implementation of all community partnerships in support of Vantage’s airport development projects, including the Vantageled $2.1 billion development of Terminal 6 at John F. Kennedy International Airport, slated to break ground in 2022.

HEALTH CARE

LAW

TECHNOLOGY

Helix

Katsky Korins LLP

Carbyne

Daniel Lee joined Helix as SVP of Life Sciences and Growth to oversee partnerships leveraging the unique and growing datasets of Helix with life sciences, payer and government customers. Previously, Lee served as SVP of Enterprise Modernization at CVS Health, leveraging technology to improve customer experiences. He spent 17 years at Pfizer in roles including VP of Consulting and Execution where he was focused on growth, new business and innovating across clinical trial and commercial teams.

Valerie Tocci, a top New York City matrimonial and family lawyer, has joined Katsky Korins LLP as a partner in the firm’s Matrimonial Department, chaired by Marcy L. Wachtel. Valerie, a former state and federal prosecutor, brings over a decade of experience practicing matrimonial and family law at New York’s premier divorce boutique firms, including pre-nuptial, post-nuptial, child custody and divorce agreements and litigations of complex marital estates and contested child custody matters.

Rahul Sheth joins Carbyne, the world’s leading mission critical contact center & data platform, as Chief Financial Officer. As CFO, Sheth will help Carbyne to accelerate growth in new markets and deliver value for their shareholders. He has more than 15 years of experience, with a background in scaling tech companies, specializing in raising capital, IPO readiness and registration, and financial planning. He is energized to join Carbyne as the company enters its next phase of expansion.

ARCHITECTURE

HOK HOK has named Luke Bridle, AIA, LEED AP BD+C, ENV SP, director of transportation for its global Aviation + Transportation (A+T) practice. Based in HOK’s New York studio, Luke brings more than 20 years of architectural experience planning and designing mass transit and rail station projects, including work at Penn Station and Grand Central Station in New York City and at Kempegowda International Airport in Bengaluru, India.

INDUSTRY ACHIEVERS ADVANCING THEIR CAREERS Recognize them in Crain’s

TECHNOLOGY NONPROFIT FINANCIAL SERVICES

Popular Bank Popular Bank, a subsidiary of Popular, Inc. (NASDAQ: BPOP) has appointed Adam E. Dejak to the role of National Director of Residential Lending for Popular Mortgage. Mr. Dejak will oversee the bank’s residential mortgage business and will be responsible for driving growth and development of the entire program, cultivating talent and expanding the lending product suite. He will be based in New York.

HEALTH CARE

Nevvon

Corporation for Supportive Housing

Nevvon has named Nancy Geiger as the VP of Quality Assurance and Compliance. Nancy is a home care veteran of over 30 years, formerly as the Director of Gurwin Home Care Agency and previously the director of Gentiva Health Services. Nevvon is an e-training solution trusted to help agencies achieve regulatory compliance while saving time and money, and empowering caregivers with the knowledge and confidence they need to make their patients’ lives better. We are elated to have Nancy at Nevvon!

Barbara Green-Flood joins the national nonprofit Corporation for Supportive Housing (CSH) as Eastern Region Managing Director, where she will oversee operations and business development regionally from Maine to Florida. CSH advances supportive housing to solve chronic homelessness through lending and grantmaking, training, technical assistance, and consulting. Before joining CSH, Green-Flood was Director of Regional Operations at the New York State Office of Children and Family Services.

Daily Sarah Milstein joins Daily, the leading WebRTC video and audio developer platform, as VP of Engineering. Sarah has 25 years of experience leading teams at startups where she set strategy, developed products and improved operations. She will help Daily’s engineering team expand and execute as a fully remote organization, while the company onboards more engineers to handle all the complexities of WebRTC. Sarah has held positions at ConvertKit, Mailchimp and O’Reilly Media. www.daily.co

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

JANUARY 24, 2022 | CRAIN’S NEW YORK BUSINESS | 17

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FROM PAGE 1

who were not left out in the cold.” Gerard Cassidy, an analyst at RBC Capital Markets, described Jones as the 21st-century version of the banker Jimmy Stewart played in It’s a Wonderful Life. “He understands the mission of banking is to serve communities and customers, while also making a return for shareholders,” Cassidy said. “There’s no one better than M&T.”

Fingers crossed In 2020 the Federal Reserve stress-tested M&T’s nearly $100 billion loan book and determined its capital levels would be the lowest of 33 major U.S. banks in a “severely adverse” economic scenario. M&T officials decided merging with People’s United was the best course of action. Not only would the merger expand its brand of personal-touch banking to more cities and towns across the Northeast, but it also would dilute its exposure to New York City real estate. That decision ran into a federal administration looking more skeptically at corporate mergers than its predecessors had. When insurance brokers Aon and Willis Towers Watson called off their $30 billion

and hope for good news. “We’ve got our fingers crossed,” Chief Financial Officer Darren King said on a conference call last week. Meanwhile, the bank faces competitive pressure from giants such as Goldman Sachs moving into small-business and consumer lending while financial startups win customers with cutting-edge technology. A study last month from the Federal Reserve Bank of St. Louis showed that financial-technology firms such as Chime and Dave accounted for 38% of personal loans in 2018, up from 5% in 2013, while banks’ share of the loans fell to 28% from 40%. “M&T is the sort of small-town bank that politicians love, but it’s also exactly the sort of bank customers are leaving,” said Dick Bove, an analyst at Odeon Capital. “Management thinks the bank will thrive by being uniquely old-fashioned. We’ll see.”

agreeing to acquire New Jersey– based Hudson City Savings for $3.7 billion. Five years lat `er he died at age 83. Buffett said Wilmers was “a remarkable banker, an even more remarkable citizen and a wonderful friend.” Wilmers was succeeded by Jones, who had been M&T’s chief financial officer. Bove told Crain’s that he had called Jones “arrogant” for the way he dismissed analyst questions on conference calls as CFO, and he predicted in a client report that regulators would push back before approving the Hudson City merger. When the government wouldn’t sign off on the deal until the bank’s systems to detect money-laundering were improved, Bove said Jones called and told him, “I bet you’re gloating now.” After Crain’s asked M&T about that exchange, Bove reached out to say Jones has matured. He no longer would call Jones arrogant, he said.

A legend’s imprint

Bright lights, big city

The success of M&T, which declined to make executives available to interview, is largely the legacy of one man: Robert Wilmers. A native New Yorker who served as deputy finance commissioner under Mayor John Lindsay and worked for JPMorgan in Europe, Wilmers in 1983 started methodically building up a bank that began in 1856 as Manufacturers & Traders Trust. M&T acquired ailing rivals at steep discounts while avoiding the reckless lending and trading that distinguished pre-2008 banking. Throughout the financial crisis, M&T never posted a quarterly loss or cut its dividend. “Wilmers would ask you more questions than you’d ask him,” said Tom Brown, chief executive of investment firm Second Curve Capital. In 2012 Wilmers expanded M&T in the New York City market by

Regulators finally approved the Hudson City merger in 2015, paving the way for M&T to become a major player in New York’s booming prepandemic real estate scene. The bank made more than $6 billion worth of property loans in the city, many to hotels, including $230 million in 2018 to construct the TWA Hotel at JFK Airport and $66 million in 2019 to refinance the mortgage for the Financial District’s Hilton Garden Inn. New York Department of State records show another M&T borrower is the Beekman Hotel in the Financial District, whose owner sued Keith McNally for unpaid rent after a hotel restaurant closed, alleging the renowned restaurateur violated the “Beekman Vision.” McNally retorted, “In no way would I have been interested in opening a restaurant that reflected anyone else’s ‘vision.’ ” The dispute was settled out of court. Commercial real estate accounts for 39% of M&T’s total loans, according to Wedbush Securities,

“WILD AND CRAZY BANKERS ALWAYS END UP AT THE BOTTOM OF THE HEAP” merger last year, U.S. Attorney General Merrick Garland described the decision as “a victory for competition and for American businesses.” Rep. Maxine Waters, chairwoman of the House Financial Services Committee, last month demanded regulators impose a moratorium on mergers spawning banks with more than $100 billion in assets. For now, all M&T can do is wait

ROBERT WILMERS was “a remarkable banker,” according to Warren Buffett.

BUCK ENNIS

MERGER

well above the 15% average for a regional bank. Although analysts say M&T’s loan-to-value ratios are low, a sign the bank hasn’t taken excessive risk, its nonperforming asset ratio of 2.7% was more than double that of its peers in the third quarter, according to RBC Capital. Admirers say the bank will avoid big losses, like it did during the financial crisis. “I really don’t worry about M&T’s credit quality,” Brown said. “They have a culture.” Buffett, nonetheless, has moved on. In 2020 he sold all his M&T shares along with those in JPMorgan Chase and PNC Bank. He kept his Bank of America stock. Last year M&T officials told analysts they were looking to reduce the bank’s exposure to commercial real estate after the Fed’s stress-test results suggested “there might be more capital-friendly ways to participate in the CRE industry,” King, the CFO, said on a conference call in October. He emphasized it would be a “gradual and controlled shift” that had been “highly dramatized in the last little while, notably by a favorite reporter in New York City.” (He was referring to the reporter who authored this story.) The commercial real estate portfolio is expected to see low-sin-

gle-digit percentage declines this year, King told analysts last week. There are signs the hard times are over for M&T. After performing worse than most bank stocks during the pandemic, its share price jumped by 15% this month. Wedbush analyst Peter Winter said the merger with People’s United could finally get the green light now that Jerome Powell and Lael Brainard seem sure to remain on the Fed’s board. Mergers involving CIT Group and Sterling National Bank were approved last month. Additionally, rising interest rates will make lending more profitable for the banks that maintained credit standards in recent years and avoided defaults. In the end, the fate of what is at heart a small-town bank that goes the extra mile for customers depends greatly on what happens in the big city. If New York’s hotel rooms and office buildings fill up again, M&T should be fine. If that doesn’t happen, the bank could become the latest cautionary tale about coming to the city and losing your way. “Boring is not a negative in banking,” said Cassidy, the RBC analyst. “Wild and crazy bankers always end up at the bottom of the heap.” ■

REAL ESTATE

City officials push to landmark the beleaguered Roosevelt Hotel amid fears it could be converted

he historic Roosevelt Hotel, shuttered since December 2020, looks desolate and forgotten to the untrained eye. But beneath the boarded-up windows and behind the homeless New Yorkers taking shelter under its awnings lay layers of international legal disputes, a souring relationship with the city’s hotel union and a push from local officials to win landmark status for the site. Amid concerns that the building on East 45th Street will be converted to another use by its current owners, Pakistan International Airlines, City Councilman Keith Powers—along with Manhattan Borough President Mark Levine, state Sen. Brad Hoylman and Assemblyman Richard Gottfried—is calling

on the city to landmark the hotel so that it can’t be torn down or altered in any significant way, according to a letter obtained by Crain’s. “As one of Manhattan’s only major hotels that has not yet even partially reopened since the start of the Covid-19 pandemic, we are concerned that its future may be in jeopardy,” Powers wrote in his missive, addressed to Sarah Carroll, chairwoman of the city Landmarks Preservation Commission. The property’s owners are also involved in a dispute with the Hotel Trades Council for unpaid severance and withdrawal liabilities under the union contract with employees. As of Jan. 20, the building had accumulated $7 million in unpaid severance fees, the HTC claims. The hotel also hasn’t complied with a

new city law that requires any hotel that had not opened as of Nov. 1 to pay its workers $500 per week. The owners are suing the city over the law to avoid liability for the severance fees. But the law contains an exception for inns that are being converted to another use. To help the hotel’s former staff keep their jobs and their severance payments, the HTC would like the building to achieve landmark status and remain a hotel, it said. “The Roosevelt is an iconic hotel that should reopen and remain the fixture it has been for generations,” HTC President Richard Maroko said. Manhattan Community Board 5 NATALIE SACHMECHI

BY NATALIE SACHMECHI

passed a resolution last month to request an evaluation for the hotel to be landmarked.

Global woes The 1,013-room building’s issues reach deeper than scuffles with local interests. The Pakistani government, which runs Pakistan International Airlines, is battling over the property in U.S. District Court in Manhattan—and in international court in the British Virgin Islands— with Australian mining company Tethyan Copper. Pakistan is alleged to have reneged on a mineral-rights deal with Tethyan in the Balochistan region. As part of a $6 billion award granted to the mining company, Tethyan

wants to get its hands on the property, according to court documents. The Roosevelt has been struggling since it was acquired by the airline. During the first 16 years of its ownership of the property, the owner lost at least $70 million because the hotel was desperately in need of renovations. A nearly $100 million revamp helped the property become profitable, however, the Pakistani government debated shedding the property to help its struggling airline. Local developers have been eyeing the site for a potential office project—one that would span an entire city block and could be built much taller than the building’s current 16 stories. Pakistan International Airlines could not be reached for comment. ■

18 | CRAIN’S NEW YORK BUSINESS | JANUARY 24, 2022

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FROM PAGE 1

tech (5%), consulting (5%) and media (5%) sectors. Just 16% of the responding companies said their average daily attendance was higher than 50%, and 7% said they expect office attendance to surpass that amount by the end of this month. Thirty-eight percent expect it to surpass that threshold by the end of the first quarter. Only 2% of firms said they didn’t expect to have more than half their

have suspended business travel, and 5% have stopped allowing guests in the office. Additionally, 12% of the surveyed companies have a vaccine mandate in place, and 25% require that employees who go to the office get regularly tested. The omicron surge is just the latest factor to postpone return-tooffice plans for several companies, much to the chagrin of the city’s office landlords. Many had hoped to see a more widespread employee return last year as New York’s vaccine rollout began in earnest, but the arrival and severity of the delta variant ended those plans.

COMPANIES STILL VIEW OFFICE SPACE AS IMPORTANT TO THEIR FUTURE employees back until next January or later, and 22% said they could not estimate when office attendance would surpass the 50% mark, noting that it would depend on Covid-19 cases going down.

Change in policies The omicron surge also has caused companies to change their policies for employees who are returning. The survey found that 34% have reinstated a mask mandate, 22% have closed their offices to nonessential workers, 10% have suspended in-person meetings, 7%

Strong leasing

Office leasing, however, has remained strong despite the multiple delays, indicating that companies do still view having office space as an important part of their future. Firms leased about 8.6 million square feet of space in the borough during the fourth quarter of last year, for Manhattan’s best quarter since the end of 2019, according to a new report from Colliers. Manhattan saw about 25 million square feet of leasing activity throughout 2021, a 31.6% jump from 2020 and the largest year-over-year growth since 2013. However, the sector has not yet fully bounced back from the pan-

ISTOCK

OMICRON

demic, as total office leasing in 2021 remained much lower than total office leasing in 2019, when it hit about 43 million square feet. The average asking rent increased by 3.1% during the fourth quarter, to $75 per square foot. This

was the sharpest quarter-over-quarter rent increase since 2014 and came after six consecutive quarters of decreases, but it is still 5.6% lower than before the onset of the pandemic. Manhattan’s availability rate also

increased during the fourth quarter, to a record high of 17.3%, according to the report. Since March 2020 the amount of available office space in the borough has skyrocketed by 72.2%, to roughly 92.7 million square feet. ■

CRAIN’S NEW YORK BUSINESS 2022

DIVERSE LEADERS IN BANKING AND FINANCE Crain’s New York Business 2022 Notable Diverse Leaders in Banking and Finance features top banking and finance professionals from underrepresented groups who have made an impact in New York.

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INVITATION TO BID

Invitation to Prequalify and to Bid

Rehabilitation and Flood Mitigation of the New York Aquarium, Brooklyn, NY: Turner Construction Company, an EEO Employer, is currently soliciting bids for the Rehabilitation and Flood Mitigation of the New York Aquarium from subcontractors and vendors for the following bid packages: BP #055 – Cleaning/Laborer (Bid, Payment & Performance Bond Required) BP #048 – Misc. Metal & Railing (Bid, Payment & Performance Bond Required) BP #043 –Carpentry (Including Temp Shed & HMW) (Bid, Payment & Performance Bond Required) BP #064 – Spray on Fireproofing (Bid, Payment & Performance Bond Required) BP #046 – Paint (Bid, Payment & Performance Bond Required) BP #054 – Pre-Construction Surveying (Report/Pictures) (Bid, Payment & Performance Bond Required) BP #056 – Surveying (Bid, Payment & Performance Bond Required) BP #045 – Masonry (Bid, Payment & Performance Bond Required) Only bids responsive to the entire scope of work will be considered and, to be successful, bidders must be prequalified by Turner. Certified M/WBE and Small Business (13 CFR part 121) companies are encouraged to submit. In order to receive the bid packages, potential bidders either (1) must initiate the prequalification process by submitting a Subcontractor/Vendor Prequalification Statement to Turner, or (2) must be prequalified based on a prior submission to Turner. (Note: Prior prequalification submissions that remain current will be considered as previously submitted or may be updated at this time.) All bidders must be prequalified by the bid deadline: February 7th, 2022 and initial submission of a prequalification statement not later than February 7th, 2022 is strongly encouraged. All bidders must have an acceptable EMR, and will be subject to government regulations such as 44 CFR and Federal Executive Order 11246. Successful bidders will be required to use LCP Tracker compliance verification software. Note that while this is a New York City prevailing wage project, union affiliation is not required for BP #055, #048, #043, #064, #046, #054, #056 and #045. For BP#055 – Union 79 labor force is required. A Webcast about the above Bid Package/s will be held on January 13, 2021. Attendance is optional for all; the Webcast is designed to assist potential M/WBE subcontractors/vendors. Link: Please join this meeting from your computer, tablet or smartphone. https://teams.microsoft.com/l/meetupjoin/19%3ameeting_NWFmNDViZmQtNzNkZi00M2ZhLWIzYjAtMDdhMTM2ZDQ5YTMy%40thread.v2/0?context=%7b%22Tid%22%3a%2220e27 700-b670-4553-a27c-d8e2583b3289%22%2c%22Oid%22%3a%2281be9e3a-0656-4e94-9245-fa214eb20ab2%22%7d To obtain further information about contracting opportunities and/or the prequalification package and bid solicitation package/s, please contact Dolores Wooden, DWooden@tcco.com 201-954-9092. The date for the virtual public opening at the Turner Construction Company office located at 375 Hudson Street, New York, New York, is February 8th, 2022 1PM.

PUBLIC & LEGAL NOTICES Notice of Qualification of YONKERS PORTFOLIO MEMBER LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 12/22/21. Office location: NY County. LLC formed in Delaware (DE) on 05/13/21. Princ. office of LLC: 116 E. 27th St., 11th Fl., NY, NY 10016. 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., Wilimington, DE 19808. Cert. of Form. filed with Secy. of State, John G. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Real estate owner.

ESRT MV Swap Chesapeake Owner, L.L.C. Authority filed SSNY 11/29/21. Office: NY Co. LLC formed DE 9/28/21. Exists in DE: c/o Corporation Service Company, 251 Little Falls Dr., Wilmington, DE 19808. SSNY designated agent upon whom process against the LLC may be served & mail to: c/o Corporation Service Company, 80 State St., Albany, NY 12207. Cert of Formation Filed: Jeffrey W. Bullock, DE Secy. of State, Townsend Bldg., 401 Federal St., Ste. 3, Dover, DE 19901. General Purpose.

Notice of formation of Four On The Floor LLC, file with SOS of NY on 8/27/2021. Loc. in NYC, designed as agent upon whom process may be served SSNY, shall mail process to 135 W. 24th St, Apt. 2D, NY, NY 10011. Purpose: Any lawful activity.

Notice of Formation of 136 WINCHESTER LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 12/06/21. Office location: NY County. Princ. office of LLC: 98 Anderson Rd., Kent, CT 06757. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC, Attn: Lewis Hart at the princ. office of the LLC. Purpose: To purchase, own and sell real estate in New York.

Notice of Formation of Food & Courage, LLC. filed with Secy. of State of NY (SSNY) on 11/10/21. Office location: NY County. Princ. office of LLC: 1136 1st ave apt 5 NY, NY 10065. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Rachel R. Bieber at the princ. office of the LLC. Purpose: Any lawful act.

Link: Please join this opening meeting from your computer, tablet or smartphone.

https://teams.microsoft.com/l/meetupjoin/19%3ameeting_YzUxYzI4YWEtMGYwYy00MGM1LTg5ZWEtNTkwZDUwNTQ4Yjhj%40thread.v2/0?context=%7b%22Tid%22%3a%2220e2770 0-b670-4553-a27c-d8e2583b3289%22%2c%22Oid%22%3a%22732a90ce-24b7-42eb-bf78-d638e2a629ac%22%7d

ESRT Victory Owner, L.L.C. Authority filed SSNY 11/29/21. Office: NY Co. LLC formed DE 9/28/21. Exists in DE: c/o Corporation Service Company, 251 Little Falls Dr., Wilmington, DE 19808. SSNY designated agent upon whom process against the LLC may be served & mail to: c/o Corporation Service Company, 80 State St., Albany, NY 12207. Cert of Formation Filed: Jeffrey W. Bullock, DE Secy. of State, Townsend Bldg., 401 Federal St., Ste. 3, Dover, DE 19901. General Purpose.

PUBLIC & LEGAL NOTICES Notice of Formation of PAULA ZIRINSKY LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 11/24/21. Office location: NY County. Princ. office of LLC: 315 Riverside Dr., #9A, NY, NY 10025. 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 400 CAPITAL ASSET BASED ONSHORE TERM FUND III L.P. Appl. for Auth. filed with Secy. of State of NY (SSNY) on 12/30/21. Office location: NY County. LP formed in Delaware (DE) on 05/18/21. Princ. office of LP: 510 Madison Ave., 17th Fl., NY, NY 10022. Duration of LP is Perpetual. SSNY designated as agent of LP upon whom process against it may be served. SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 12207-2543. Name and addr. of each general partner are available from SSNY. DE addr. of LP: 251 Little Falls Dr., Wilmington, DE 19808. Cert. of LP filed with Secy. of State of the State of DE, 401 Federal St., Dover, DE 19901. Purpose: Any lawful activity.

Suki Ichiro Japanese LLC, Arts of Org filed with SSNY on 11/01/21. Off Loc: New York County, SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail a copy of process to: The LLC, 1694 Second Ave, New York, NY 10128. Purpose: to engage in any lawful act.

Notice of Application for Authority of FLLC: Tinicum Venture Partners I GP LLC Application for Authority of FLLC filed with SSNY: 12/10/2021. The jurisdiction of the co. is DE, it was formed on 11/22/2021. Office location in NYS, NY County is 800 3rd Ave. 40th flr, NY, NY 10022. SSNY desig. as agent of the FLLC upon whom process against it may be served. SSNY can mail process to c/o Tin. Enter. Inc. 990 Stewart Ave, Ste 580, Garden City, NY 11530. The address of the principal office of the Co. in DE is 1209 ORANGE STREET, WILMINGTON, DE 19801. Name & address of the auth. officer in DE where a copy of the Articles of Organization of the FLLC is filed at SOS JEFFREY W. BULLOCK, 401 FEDERAL STREET, STE 4 DOVER, DE 19901. Purpose of company is any lawful activity.

Notice of Qualification of CITY WINERY GRAND CENTRAL, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 12/13/21. Office location: NY County. LLC formed in Delaware (DE) on 11/08/21. Princ. office of LLC: 25 11th Ave., NY, NY 10013. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207. DE addr. of LLC: c/o CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, Div. of Corps., John G. Townsend Bldg., 401 Federal St., Dover, DE 19901. Purpose: Any lawful activity.

Notice of Qualification of Fulton RE Holdings LLC. Authority filed with Secy. of State of NY (SSNY) on 12/14/21. Office location: NY County. LLC formed in Delaware (DE) on 12/01/21. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: Ilyse Dolgenas, Esq., Withers Bergman LLP, 430 Park Ave., 10th Fl., NY, NY 10022. Address to be maintained in DE: 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 Formation of Gomez Personal Custom Prints LLC. Arts of Org filed with Secy of State of NY (SSNY) on 10/10/21. Office location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to 429 Orchard St, Englewood, NJ 07631. R/A: NY Registered Agent LLC, 90 State St, Ste 700, Ofc 40, Albany, NY 12207. Purpose: any lawful act.

Notice of Qualification of KINOKO LOGISTICS, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 12/02/21. Office location: NY County. LLC formed in Delaware (DE) on 02/04/14. Princ. office of LLC: 100 Ave. of the Americas, 16th Fl., NY, NY 10013. 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 DE Secy. of State, John G. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.

Notice of Qualification of J26 LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 12/02/21. Office location: NY County. LLC formed in Delaware (DE) on 06/26/20. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o. Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543. DE addr. of LLC: c/o CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, John G. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.

Notice of Formation of ORANGEBURG MANOR DEVELOPER, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 11/19/21. Office location: NY County. Princ. office of LLC: 30 Hudson Yards, 72nd Fl., NY, NY 10001. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 12207-2543. Purpose: Any lawful activity.

Notice of Formation of Limited Liability Company (LLC). NAME: ArletteClaudine LLC. Articles of Organization filed with the Secretary of State of NY (SSNY) on 07/02/2021. Office Location: NEW YORK County. SSNY designated as agent upon whom process against it may be served. Address to which SSNY shall mail a copy of process is: United States Corporation Agents Inc, 7014 13th Avenue, Brooklyn, NY, 11228, USA. Principal business address of the LLC is 33 Riverside Drive, Apt 7DA, New York, NY 10023. Purpose: any lawful act or activity.

20 | CRAIN’S NEW YORK BUSINESS | JANUARY 24, 2022

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To place a classified ad, Call 212-210-0189 Contact Claudia Hippel at 312-659-0076 or email: claudia.hippel@crain.com or Email: classifieds@crainsnewyork.com

PUBLIC & LEGAL NOTICES Notice of Qualification of THUZIO, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 11/18/21. Office location: NY County. LLC formed in Delaware (DE) on 12/ 12/11. Princ. office of LLC: 114 W. 26th St., 5th Fl., NY, NY 10001. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the princ. office of the LLC. DE addr. of LLC: 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State of DE, Dept. of State, Div. of Corps., John Townsend Bldg., 401 Federal St., Dover, DE 19901. Purpose: Any lawful activity.

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Notice of Formation of CAPE GRAVITY, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 11/19/21. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Brian Orlando, 350 Bleecker St., Apt. 6X, NY, NY 10014, regd. agent upon whom and at which process may be served. Purpose: Any lawful activity.

ESRT MV Swap Victory Owner, L.L.C. Authority filed SSNY 11/29/21. Office: NY Co. LLC formed DE 9/28/21. Exists in DE: c/o Corporation Service Company, 251 Little Falls Dr., Wilmington, DE 19808. SSNY designated agent upon whom process against the LLC may be served & mail to: c/o Corporation Service Company, 80 State St., Albany, NY 12207. Cert of Formation Filed: Jeffrey W. Bullock, DE Secy. of State, Townsend Bldg., 401 Federal St., Ste. 3, Dover, DE 19901. General Purpose.

Notice of formation of Limited Liability Company. Name: Nathan Galinsky Apartments Preservation LLC (“LLC”). Articles of Organization filed with the Secretary of State of the State of New York (“SSNY”) on December 6, 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 Nathan Galinsky Apartments Preservation LLC, 641 Lexington Avenue, 15th Floor, New York, NY 10022. Purpose/character of LLC is to engage in any lawful act or activity.

Notice of formation of Limited Liability Company name: Walker 5, LLC Art. Of Org. Filed Sec. of State of NY 06/07/2017. Off. Loc.: Richmond Co. SSNY designated as agent upon whom process against it may be served. SSNY to mail copy of process to The LLC, 209 Granite Ave Staten Island NY. Purpose: Any lawful act or activity.

Notice of Qualification of RADIO RESTAURANT, LLC. Appl. for Auth. filed with Secy. of State of NY (SSNY) on 12/27/21. Office location: NY County. LLC formed in Delaware (DE) on 12/02/21. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Youngwoo & Associates, LLC, 545 W. 25th St., 8th Fl., NY, NY 10001. DE addr. of LLC: c/o Corporation Service Co., 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with DE Secy. of State, Div. of Corps., 401 Federal St., Dover, DE 19901. Purpose: Any lawful activity.

Notice of formation of Limited Liability Company. Name: Nathan Galinsky Apartments Preservation Management LLC (“LLC”). Articles of Organization filed with the Secretary of State of the State of New York (“SSNY”) on December 6, 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 Nathan Galinsky Apartments Preservation Management LLC, 641 Lexington Avenue, 15th Floor, New York, NY 10022. Purpose/character of LLC is to engage in any lawful act or activity.

Notice of Qualification of 400 CAPITAL JSIF IV GP LLC. Appl. for Auth. filed with Secy. of State of NY (SSNY) on 12/30/21. Office location: NY County. LLC formed in Delaware (DE) on 06/11/21. Princ. office of LLC: 510 Madison Ave., 17th Fl., NY, NY 10022. 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 of the State of DE, 401 Federal St., Dover, DE 19901. Purpose: Any lawful activity.

Off The Rip LLC Arts. of org. filed with NY Secy. of State (SSNY) on 9/16/20. Office location: NY County. SSNY designated as agent of LLC upon whom process may be served. SSNY shall mail process to:105 West 125th Street #1048 NY, NY 10027. Purpose: any lawful activity.

Notice of formation of Limited Liability Company name: Walker 89, LLC Art. Of Org. Filed Sec. of State of NY 05/19/2016. Off. Loc.: Richmond Co. SSNY designated as agent upon whom process against it may be served. SSNY to mail copy of process to The LLC, 209 Granite Ave Staten Island NY. Purpose: Any lawful act or activity.

Notice of Formation of CPG CSA PRESERVATION PARTNERS LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 12/08/21. Office location: NY County. Princ. office of LLC: 116 E. 27th St., 11th Fl., 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.

Notice of formation of Konisan (NY), LLC, file with SOS of NY on 12/13/21. Loc in NY County, designed as agent upon whom process may be served SSNY, shall mail process to 600 Mamaroneck Ave #400, Harrison, NY 10528. Purpose: any lawful activity.

Notice of formation of Limited Liability Company. Name: Nathan Galinsky Apartments Development LLC (“LLC”). Articles of Organization filed with the Secretary of State of the State of New York (“SSNY”) on December 6, 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 Nathan Galinsky Apartments Development LLC, 641 Lexington Avenue, 15th Floor, New York, NY 10022. Purpose/character of LLC is to engage in any lawful act or activity.

Notice of Qualification of 83LEONIS LLC. Appl. for Auth. filed with Secy. of State of NY (SSNY) on 01/07/22. Office location: NY County. LLC formed in Delaware (DE) on 11/29/21. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Ajaypal Singh Banga, 875 5th Ave., Apt. 19A, NY, NY 10065. DE addr. of LLC: 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.

NOTICE OF FORMATION OF ANNA WEISS, P.L.L.C. Arts. of Org. filed with Secy of State of NY (SSNY) on 2/7/19. Office: NY County. SSNY designated as agent upon whom process may be served. SSNY shall mail copy of process against PLLC to 200 Rector Pl 12B, NY, NY 10280. Purpose: Any lawful act.

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JANUARY 24, 2022 | CRAIN’S NEW YORK BUSINESS | 21

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DEALS OF THE WEEK

BY NATALIE SACHMECHI AND EDDIE SMALL

EVERY WEEKDAY AT CRAINSNEWYORK.COM, the real estate team compiles the biggest and most notable sales and leases taking place throughout the five boroughs. Below are a few of the transactions that were on our radar the week of Jan. 17. LEASES ■ Lincoln Market opens Astoria location Address: 21-31 31st St., Queens Landlord: RockFarmer Properties Tenant: Lincoln Market Lease size: 16,760 square feet Lease term: 20 years Asset type: Mixed-use Brokers: Ben Weiner and Chris Walther of Ripco Real Estate and Kostas Koutsothanasis represented the landlord. Scott Sher of Katz Retail represented the tenant. ■ Restaurant relocates on the Upper East Side Address: 116 E. 60th St., Manhattan Landlord: Solil Management Tenant: T-Bar Steak & Lounge Lease size: 4,500 square feet Asset type: Retail Brokers: Jeremy Modest represented the landlord in-house. Michael Gavin and Joshua Singer of the Heller Organization represented the tenant. ■ A new K-8 school is coming to Mount Hope Address: 1956 Jerome Ave., Bronx

Landlord: Bolivar Development Tenant: Seton Education Partners Lease size: 73,000 square feet Asset type: School Brokers: Bolivar Development was represented internally by Jim Lester and Peter Fine. Stephen Powers and Lindsay Ornstein of Open Impact Real Estate and Jake Cinti and Alexander Smith of Transwestern Real Estate Services represented the tenant. ■ Insurance firm takes Grace Building lease Address: 1114 Sixth Ave., Manhattan Landlord: Brookfield Properties Tenant: Arch Insurance Co. Lease size: 44,510 square feet Asset type: Office Brokers: The tenant was represented by Mark L. Ravesloot, Scott Sloves and Colin Reilly of CBRE. ■ Media production company takes space at 30 Broad St. Address: 30 Broad St., Manhattan Landlord: 30 Broad Street Venture LLC Tenant: PS260 Lease size: 7,615 square feet Asset type: Office

Brokers: Avison Young's Peter Gross represented the tenant, and Newmark's Dan Appel and Andrew Peretz represented the landlord. SALES ■ Coral Realty buys Lenox Hill mixed-use building Address: 305 E. 61st St., Manhattan Seller: Carter Management Corp. Buyer: Coral Realty Sales price: $35 million Asset type: Mixed-use ■ Chelsea property trades hands Address: 520 W. 23rd St., Manhattan Seller: The Kimmel Family 23rd Street LLC Buyer: Old Post Mande 23rd Street LLC Sales price: Approx. $26.8 million Asset type: Multifamily ■ Elder care company purchases Throgs Neck building Address: 727 Throgs Neck Expressway, Bronx Seller: The Benjamin Cos. Buyer: Philosophy Care Centers Sales price: Approx. $19.8 million Asset type: Commercial ■ Kam Lun sells Elmhurst site Address: 86-18 Broadway, Queens Seller: Kam Lun Food Products

Buyer: Golden Sparkling NY LLC Sales price: $19 million Asset type: Commercial ■ Witnick buys Upper East Side apartment building Address: 443 E. 88th St., Manhattan Seller: Douglas Elliman Property Management Buyer: Witnick Real Estate Partners Sales price: $12 million Asset type: Multifamily ■ Slate buys boutique Kips Bay hotel Address: 161 Lexington Ave., Manhattan Seller: Apple Core Hotels Buyer: Slate Property Group Sales price: $29.9 million Asset type: Hotel ■ Certes Partners makes bulk East New York condo sale Addresses: 148, 156 190, 200, 240, 380, 400 and 436 Cozine Ave., 1069 New Jersey Ave., 1064 and 1065 Vermont St., 12205, 12399, 12421, 12425, 12429, 12431 and 12435 Flatlands Ave., 1019 Van Siclen Ave., 971 Jerome St., and 1010 and 1030 Elton St., Brooklyn Seller: Certes Partners Buyer: Meadowwood Towers LLC Sales price: Approx. $30.6 million Asset type: Condos

■ Catholic Charities sells Hell’s Kitchen property Address: 539 W. 54th St., Manhattan Seller: The Catholic Charities of the Archdiocese of New York Buyer: Excel Development Group Sales price: $25 million Asset type: Religious structure ■ Lenox Hill building finds new owner Address: 9 E. 68th St., Manhattan Seller: Ursula Realty Corp. Buyer: FG Residential Sales price: $24.5 million Asset type: Mixed-use ■ New Orleans–based LLC buys downtown Manhattan office building Address: 67 Gansevoort St., Manhattan Seller: Fairfax & Sammons Properties Buyer: Nueva Maison LLC Sales price: Approx. $14.8 million Asset type: Office ■ Thor Equities sells off SoHo property Address: 496 Broadway, Manhattan Seller: Thor Equities Buyer: 496 Broadway Fee Owner LLC Sales price: Approx. $12.9 million Asset type: Mixed-use

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22 | CRAIN’S NEW YORK BUSINESS | JANUARY 24, 2022

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GOTHAM GIGS

BUCK ENNIS

WEISS stresses the importance of the rezoning process.

ELI WEISS AGE 44 BORN Manhattan Beach, Brooklyn RESIDES Lower Manhattan EDUCATION Bachelor’s in finance and accounting, Yeshiva University; J.D., Seton Hall Law School; master’s, NYU Schack Institute of Real Estate LEGALESE “I went to law school because … I saw how much like outsiders my grandparents felt, with rules and regulations in business, and understood that success in business required an acute understanding of the legal system,” Weiss explained. DEFENDING ULURP The city’s land-use review process is frequently criticized for being slow and laborious, but Weiss said he actually appreciates how transparent it is. “Given sensitivities, I don’t mind that people have a long time to look at things,” he said. “We have a very foreseeable process.”

Making the city more affordable Joy Construction exec focuses on “intelligent and fair development” BY EDDIE SMALL

oy Construction Principal Eli Weiss got to see firsthand what life as a landlord was like starting at a young age. “Both [sets] of my grandparents had stores on Brighton Beach Avenue and … ended up buying the buildings,” he said. “My paternal grandfather, Jack Weiss, he would walk me to his building or two, and he would talk to the tenants.” Weiss’s grandparents were all Holocaust survivors who came to New York in the 1950s. Weiss says he was attracted to the “real” aspect of real estate, enjoying that the properties they owned were places where people did ordinary things like buy food and get haircuts. Weiss spent some time working on Wall Street but was pulled to real estate by a job at the city’s Housing Development Corp. in the early 2000s, where he issued bonds for affordable housing projects. In

2008 he was hired as director of development at Joy Construction, a firm with about 140 employees. Although his development team is a small one—just him and three others—it works with the firm’s entire construction management operatin of 40 people. As principal, he still focuses on affordable projects. Two notable ones are Sherman Creek North Cove in Inwood and River Crest in the South Bronx. Trying to bring more fair-priced units to the city has been a persistent issue, and he enjoys how complicated such projects are. “Affordable housing, to me, is the most challenging part of real estate,” he said. “You’re taking something that mathematically shouldn’t make sense and you’re financially engineering and using various government programs to ultimately put together deals that are far more complicated in terms of capitalization than your standard market-rate transaction.”

“I also love the end result,” he continued. “I truly believe that the power of a home, and the power of having a quality home, can really change somebody’s life.” Weiss thinks New York should focus on creating programs that allow market-rate units to finance affordable units and approach rezonings through the lens of seeing which neighborhoods would benefit most. He has been part of multiple rezoning efforts—some in areas where the projects had tremendous support, and some where they faced tremendous opposition. He stressed that each process is an important tool to help the city grow despite the pushback it inspires. “I am sensitive to the fact that people don’t want change or people fear gentrification,” he said, “but the reality is, the city needs to grow, and so we’re left with either a city in decline and the status quo, or we can choose intelligent and fair development.” ■

“I TRULY BELIEVE THAT THE POWER OF HAVING A QUALITY HOME CAN REALLY CHANGE SOMEBODY’S LIFE”

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