Crain's New York Business

ASKED & ANSWERED Councilwoman prioritizes mental health care

STAYING AFLOAT Arts groups find public, private funding to aid in their recovery PAGE 3

CRAINSNEWYORK.COM

|

PAGE 10

MARCH 14, 2022

FORGING AHEAD The city’s life science industry stays the course amid recent waves of uncertainty

BY SHUAN SIM

N

ew York City’s burgeoning life science and biotech sector is flush with millions of dollars in government investment, but a new set of external forces has thrust a seemingly inevitable growth spurt into uncertainty and strife.

The city has invested deeply in life science infrastructure, such as laboratory space and incubator programs, to compete with heavyweights such as Boston and Cambridge, Massachusetts, and San Francisco’s Bay Area. In June then-Mayor Bill de Blasio announced the city would AMOUNT commit an additional $500 invested by the million to LifeSci NYC, a city to support joint initiative with the Ecothe life sciences nomic Development Corp., to bring the total investment to $1 billion.

The investment paid off.

The city now boasts at least 10 incubator programs, including BioLabs@NYULangone, a 50,000-square-foot facility in Hudson Square, and Johnson & Johnson’s JLabs, a 30,000-square-foot space in SoHo. The Alexandria Center for Life Science in Kips Bay, first opened in 2010, has completed two of its three

PHIL FOSTER

$1B

See SCIENCE on page 19

TECHNOLOGY

How startups are chasing workers in a hot tech labor market

BY RYAN DEFFENBAUGH

C

apchase, a fintech startup based in the Flatiron District, had a big 2021.

The firm raised $280 million from investors in the summer and saw its headcount grow from 16 to more than 100. Fresh off an

NEWSPAPER

VOL. 38, NO. 10

P001_CN_20220314.indd 1

$80 million investment round announced last Thursday, Capchase has at least 40 more positions to fill in the coming months— something CEO and co-founder Miguel Fernandez knows won’t be easy.

“The labor market is really tight,” said Fernandez, whose company connects startups

© 2022 CRAIN COMMUNICATIONS INC.

with nondilutive financing. “Last year was a good year for tech companies, with a lot of money in the market at high valuations.

When you have that valuation, you need to hire people to grow and prove that value.”

It’s a challenge many tech leaders face. The Great Resignation, which saw 4.3 million

Americans leave their job in January, has hit the technology industry at a time when many firms are experiencing increased demand for their products and pressure from investors to continue growing. Venture capital investors See WORKERS on page 22

BUSINESS SPOTLIGHT

THE CLOSER

TECH FIRM’S NOVEL WAY OF SNAPPING PICTURES OF EARTH PAGE 23

Real estate broker moves into cannabis market PAGE 17 3/11/22 5:41 PM

POLITICS

$1 billion in federal homeowner, small-business relief programs for NY is caught up in bureaucracy

BY BRIAN PASCUS

dollar,” Orecki said.

wo federal Covid-19 relief programs for New York that were authorized in November have distributed little of the money provided.

More than $1 billion in homeowner assistance and small-business recovery funds have been left on the table since being approved in March 2021.

As the pandemic emergency decreases, some fiscal watchdogs wonder whether the relief programs are now necessary and if there’s enough oversight of the $41 billion in federal money sent directly to Albany.

One watchdog raised the notion that the relief money—particularly $12.7 billion in American Rescue Plan Act funds—could become a pile of unassigned dollars for the state government to use as it deems necessary.

“They had to do federal reporting of what they planned to spend money on, and they were very opaque. To the extent the money is [for] revenue loss, it’s fungible,” said Peter Warren, director of research at the Empire Center for Public Policy, a fiscally conservative think

City spending

WEBCAST CALLOUT

MAY 5 CRAIN’S HEALTH EQUITY FORUM EVENT The Covid-19 pandemic has exacerbated health disparities in New York City. Providers and public officials have made great strides to remedy these inequalities, from prioritizing hard-hit communities in the vaccine rollout to expanding telehealth services, but some New Yorkers still slip through the cracks. Join Crain’s on May 5 to hear from stakeholders representing hospitals and community health clinics, public policy experts, entrepreneurs and advocates to discuss how to make the health care system more equitable and ensure New Yorkers get the care they need.

VIRTUAL EVENT Time: 8:30 to 10:00 a.m.

CrainsNewYork.com/mayforum

BLOOMBERG

T

tank. “This money is a windfall for them that they can spend largely as they see fit.”

The Homeowner Assistance Fund, a $539.5 million program to mitigate homeowner mortgage delinquencies and foreclosures during the pandemic, has spent only $72 million to date. The program plan was approved by the Treasury Department in November, eight months after the American Rescue Plan Act was signed.

Gov. Kathy Hochul’s office noted that millions of dollars have already been disbursed to homeowners across the state through the Homeowner Assistance Fund, and the Treasury Department requires a strict verification process that takes time before payments can be approved.

The second program, the $1.6 billion small-business recovery fund, is meant to help restaurants, arts venues and mom-and-pop shops during the pandemic. It has not distributed any of the $600 million approved under the American Rescue Plan. The Treasury Department allocated most of the funding to the Economic Development Corp. in November.

The governor’s office said it has yet to receive any federal funds that would allow for disbursements to be made to business owners through the small-business recovery fund.

Patrick Orecki, director of state studies at the Citizens Budget Commission, a nonpartisan fiscal watchdog, said the programs might not be structured well.

“Clearly some of the programs designed were a little too restrictive,” he said, “either because the eligibility requirements were too restrictive or applying for the money was found to be too difficult for applicants.”

The unprecedented amount of federal money sent to New York

during the pandemic has altered the budget priorities in Albany and City Hall and laid bare the limits of bureaucratic oversight.

Washington provided Albany with more than $41 billion to apply to its budgets, and New York City has more than $26 billion in federal

successful in getting Washington’s money out the door. Two in particular ran out of money so fast that legislators are calling for them to be funded again in upcoming budgets.

The Excluded Workers Fund, a subsidy to residents who were not eligible for unemployment or Covid-19 incomesupport programs, spent nearly all of its $2.1 billion within three months.

The Emergency Rental Assistance Program, a statewide rent subsidy, has doled out nearly 70% of the roughly $2.6 billion in federal aid, leading to calls for more funding from Democratic leadership.

But most of the federal money sent to Albany has simply been used to replace revenue, fill budget holes, and pay salaries and benefits to state workers. For instance, almost all of the $5.1 billion disbursed to the state under the Cares Act paid state agency salaries and benefits—including more than $3.1 billion to the state Department of Corrections and Community Supervision alone.

The state comptroller’s office said this particular use of funds was a responsible approach because it provided the state with budget relief it would otherwise have had to make up on its own.

“The coronavirus relief fund allowed the state to respond to the pandemic but close budget gaps, as well,” said Rahul Jain, deputy state comptroller for New York City.

Other large pools of money, such as the $13.5 billion approved for state and local fiscal stability, have been placed in annual budgets for the next four years, just like any other source of revenue to fund recurring expenses.

“All those dollars become green.

It looks no different than a state tax

“IT’S VERY MUCH A WINDFALL, AND THERE’S A LOT TO QUESTION” funding to use until 2026. The avalanche of cash has restructured short- and long-term fiscal priorities across the city and the state and created a series of new relief programs that may no longer be necessary now that New York is emerging from the pandemic.

Warren argued Albany now has more money than it knows what to do with.

“There’s overlap because they no longer have the direct pandemic-related expenses to spend all this money [on], so they have to spend it on something else,” Warren said.

“It’s very much a windfall, and there’s a lot to question.”

State dollars The money provided by Washington during the pandemic came from three different aid packages: the Cares Act in March 2020, the Coronavirus Response and Relief Supplemental Appropriations Act in December 2020 and the American Rescue Plan Act in March 2021.

Because of the bureaucratic strings tied around how the money could be spent and what needed to be approved in Albany before dollars flowed, some pandemic-era relief programs are only just now getting off the ground.

Other programs have been more

The city has taken a different path in how it spent its $26 billion in Covid-19 relief funds, prioritizing permanent education programs.

Though a large portion of federal funds to the city have been used on Federal Emergency Management Agency–related public health expenses, the largest allocation— about $7.7 billion—was spent to bolster the city’s education system.

Mayor Bill de Blasio passed an expansion of early childhood education—preschool for 3-year-olds, or universal 3K—and largely funded its initial budgets with one-time federal dollars. The city is betting on an improved economy in the future to continue universal 3K, but this gamble has made some uncomfortable.

“The city is not mandated to continue [3K], but there’s a strong likelihood that once the service is in place, it will be difficult to cut,” Jain said. “It’s not going to be paid for in the out years, and you have to find a way to pay for it.”

The city also spent a good chunk of its federal dollars filling budget gaps that developed in the previous two years. The Department of Sanitation received more than $371 million—mostly for salaries and benefits—while the Department of Social Services received $166 million to keep operations afloat.

“The city had an immediate revenue hole to plug,” Jain said. “That’s an important distinction between the way the state and the city used their funds.”

Lack of transparency Some watchdogs say the city has failed to keep track of all the federal dollars that have flowed in.

Comptroller Brad Lander, New York City’s top fiscal watchdog, argued recently that the city is unable to uniformly link the sources of grant funding with expenditures.

He said the city could identify only $520 million of nearly $1.3 billion in Covid-19 spending in fiscal 2021, and an additional $318 million is unaccounted for.

“Roughly half the total amount of federal aid has been spent, yet few metrics are available to assess what New Yorkers are getting from this spending,” Lander said.

Even the state comptroller’s office confirmed that it’s unclear whether the city has properly slotted federal money into the correct budget codes—units that identify scheduled allocations for each agency in their proposed budgets.

“It has made it difficult to be 100% clear as to what the funds are going toward,” Jain said. “We all believe more can be done to make sure we’re tracking the funds and that they can be useful.” ■

Vol. 38, No. 10, March 14, 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 | MARCH 14, 2022

P002_CN_20220314.indd 2

3/11/22 5:31 PM

ARTS & CULTURE

These are the funders keeping the city’s arts industry afloat amid the pandemic ILESANMI of the Laundromat Project said a single large grant has helped extend the group’s planning horizon.

Employment in this city-defining sector has been slow to recover, but all that could change now

BY CARA EISENPRESS

F

rom a perch in Bedford-Stuyvesant, Brooklyn, the Laundromat Project leads or enables artists who work at the nexus of art and community across the five boroughs. It runs an artist residency, a fellowship and, soon, programming in and near its own space.

Last year the organization received a $2 million grant from MacKenzie Scott, of the BezosAmazon fortune. Through relationships started or continued during the pandemic, several large foundations and smaller donors have committed to multiyear grants to fund the Laundromat Project’s work, said Kemi Ilesanmi, its executive director .

“As a people of color–led and –centered organization, to be able to predict how we can fill up and what programs we do in advance, we can work with that horizon,” she said, “as opAMOUNT posed to every Creatives Rebuild year wondering NY, a private what we can fund, has for do.” monthly stipends The Laundrofor artists in need mat Project is hardly alone.

Fresh from the chaos of the PORTION OF pandemic shutTOURISM dollars downs, many of spent on the the city’s arts orarts by visitors ganizations are prepandemic likewise looking to solidify their mission with funding streams that have surfaced from both public and private sources to help museums, theaters, nonprofits and artists themselves recover from a couple of years when audiences stayed home.

“New York City has been the arts capital of the world, and it needs to stay that way,” said Assemblyman Daniel O’Donnell, who represents the 69th District in Manhattan.

O’Donnell has regularly advocated for funding for the arts.

“All across the world, people come here for the arts. It generates a lot of money, and it keeps New York New York,” he said.

As a key industry in New York City, the arts employs tens of

ARTS BASICS

$125M

BUCK ENNIS/WINDOW ART, DESTINY BELGRAVE, THEY HOLD ME, 2021

12%

See FUNDING on page 18 MARCH 14, 2022 | CRAIN’S NEW YORK BUSINESS | 3

P003_CN_20220314.indd 3

3/11/22 5:36 PM

WHO OWNS THE BLOCK

Majestic former Bowery Savings Bank, now host to lavish parties, hits market for $35M

130 BOWERY

The owners of the 1895 building are facing a foreclosure lawsuit

T

130 BOWERY

he pandemic may have It’s hard to miss this Roman temple of a building that puffs out claimed one of Manhattan’s its chest at this address— the Bowery Savings Bank, completed most extravagant party spots. in 1895 and a party venue today. The building, which has 65As its owners face possible foot amber-glass ceilings and can seat 700 guests, replaced a foreclosure, 130 Bowery, a Classismaller bank on the site. But because the area was so densely cal-styled bank turned banquet hall settled, the bank could only expand by acquiring three propcalled Capitale in Chinatown, has been erties on Grand Street, which explains the site’s L shape. The put up for sale. total development cost $726,000, the Landmarks Preservation Last month Wells Fargo Bank sued Commission reports. The bank’s exterior became a landmark in brothers David and Michael Marvisi, 1966, and its interior followed in 1994. In 2002, after $4 million claiming they have failed to make payin renovations, the bank opened as Capitale, an events space. ments on a $12 million loan since April By 2012 the bank’s owner was Myint J. Kyaw, a grocery tycoon 2020. That’s when Covid-19 first whose nearby Hong Kong Supermarket was fined during the panslammed the city and officials imposed demic for price gouging. Kyaw declared personal bankruptcy in restrictions on large public gatherings.

2020.

“To date, borrower has not paid the Brothers David and Michael Marvisi, Los Angeles residents, amounts due under the loan docupurchased a stake in the property in 2017 with the help of a $12 ments and remains in default,” Wells million mortgage, records show. But the pandemic halted the Fargo alleges in its lawsuit. It brought its kind of large-scale social events for which Capitale is known, and lawsuit on behalf of those who invested the Marvisis quickly got into trouble. They now face foreclosure. in a commercial mortgage-backed security tied to the property.

In addition to making up two years of missed payments and penalty fees, Wells Fargo seeks to force the Marvisis to sell 130 Bow230 GRAND ST. ery, a 40,000-square-foot 1895 landmark designed by StanLined with green verdigris trim and large decorative ford White, “to satisfy the corbels, this 5-story Beaux-Arts commercial building amounts due.” from the early 20th century resembles, like the exBut the Marvisis, who have bank next door, a Stanford White creation. It’s not just yet to file a legal response, a look they share. The 30,000-square-foot building seem to have gotten a jump on once housed offices for the bank, according to news things. The property, which is clips. A pharmacy, a bridal shop and a bakery have listed for about $35 million, hit been tenants in recent years. Records show Hong the market in mid-January, Wah Realty purchased the building for $1.9 million based on an offering memo. in 1993 from a firm controlled by John A. Zaccaro, a Capitale, the events business member of family that owned many properties in this there, has a lease in place till once-Little Italy area. Zaccaro was the husband of the 2032, said Claudia Case, its late Geraldine Ferraro, who ran for vice president on chief operating officer. the Democratic Party ticket in 1984.

Bobby Carrozzo, a Cushman and Wakefield agent who had the listing in the winter, declined to comment. But a spokesman for the firm said Cushman is no longer repping the 231 GRAND ST. property. The Marvisis and their lawyer were unThis 8-story commercial structure, which looks like an available for comment. office building from around the time when the Bowery Despite its legal trouSaving bank was built, hasn’t strayed too far from the bles, the columned buildarea’s financial roots. A large Chase branch occupies ing, which hosts “extremethe ground floor; upstairs is the Bowery Hanbee Holy high-profile celebrity tel, a Best Western property that caters to business events, weddings and travelers. It offers rooms with queen beds starting at fundraisers,” according to $199 per night. A Queens-based limited liability commarketing materials, still pany called Hanbee Realty, managed by Ben. T. Wong, seems to be living the high bought the 49,000-square-foot building for $7 million life. Last month it hosted a in 2003. Wong collateralized the building for $24 milGreat Gatsby–themed lion in loans from Shanghai Commercial Bank in 2011. party. Clients have included Goldman Sachs and Columbia University.

145 BOWERY Wells Fargo’s lawsuit is not the only headwind David Marvisi faced recently.

The latest hotel to hit this emerging hotel district In the summer of 2020, a home he owns will be the Moxy Lower East Side, part of a chain in Los Angeles’ Hollywood Hills was the with outposts in the East Village, Times Square site of a party featuring TikTok stars, acand Chelsea, that’s supposed to open this year. cording to reports. The alleged gatherThe 88,500-square-foot project, which has 303 ing was in violation of pandemic rerooms across 18 stories, plus a restaurant and strictions, authorities said. He pleaded bars, is from Lightstone Group, which bought not guilty to two violations, according the two tax lots on the site for $28 million in to court records, though was found 2018, according to a deed. The seller was Gorguilty of allowing a “public nuisance,” a don Lau, a local developer, who had snapped up misdemeanor. ■ the side-by-side sites for $25 million in 2015.

341 BROOME ST. The Bowery, where trains once clattered on elevated tracks past seedy flophouses, has spiffed itself up like many oncerough neighborhoods. A handy example stands at this address, the Sohotel, an 88-room offering inside a modest 3-story tenement-style building that takes up almost the entire block. Claiming to have operated since 1805, which would make it New York’s oldest lodging, Sohotel today is awash with stylish touches such as exposed brick walls and subway-tile accents that might have seemed out of place a generation ago. Rooms start at $119. Guests who don’t want to stray far can amuse themselves in a half-dozen places to eat and drink under the same roof, though some seem permanently closed. 9876 Bowery Realty Corp. bought the 36,500-square-foot building for $1.4 million in 1986 and appears to have hung on to it since.

138 BOWERY This 8-story red-brick building with casement windows contains an unusual hybrid: a 48-room hotel and a 27-unit apartment building. There’s also an art gallery downstairs.

Previously, three low-slung buildings, Nos. 138, 140 and 142 Bowery, occupied the site, which is on a block known in modern times for lighting stores. But not always. One of the structures, No. 140, which retained dormered windows on its roof, was constructed in the late 18th century and once housed a butcher shop, according to the Historic Districts Council, an advocacy group. The building, though, was never awarded landmark status and it was razed. A Manhattan-based limited liability company bought the three-site, midblock property for $47 million in 2016. The company most recently borrowed $35 million from Dime Community Bank to consolidate earlier mortgages. The last apartment to rent at No. 138 was a one-bedroom unit with a terrace for $3,600 in August 2021.

238 GRAND ST. This 5-story Italianate brick office building has been looking for a tenant for an empty street-level berth that once had a Chinese bank. The target rent is $200 per square foot annually, said Ross Kaplan, an executive managing director of the firm Newmark, which is marketing it. A range of uses, including food and beverage, are being considered for the 2-story, 2,125-square-foot space, Kaplan said. Tzu Tai Tsao Corp. has owned the building since 1972. As it slowly gentrifies, the Bowery can seem far removed from the night in 1901, when John Henry, who tended bar at the site, threw a punch at Marine Corps Pvt. John Stafford, 26, in an attempt to throw him out, The New York Times reported. The blow ended up killing Stafford.

BUCK ENNIS, GOOGLE MAPS

BY C.J. HUGHES

4 | CRAIN’S NEW YORK BUSINESS | MARCH 14, 2022

P004_CN_20220314.indd 4

3/11/22 5:10 PM

Make your second home dreams a reality

pacaso.com

CN020656.indd 1

3/7/22 3:20 PM

IN THE MARKETS

After delay, M&T Bank secures federal approval for $7.6B merger with People’s United Financial The Buffalo-based bank sighs with relief as deal dilutes its lending exposure to large New York City hotels

F

M&T shares rose Monday on the merger-approval news and are up 15% this year, while most banks are down.

Merger scrutiny

BUCK ENNIS

ederal regulators have ap- tels.

On March 4 regulators finally proved a long-delayed acquisition for M&T Bank, a waved the transaction through.

“They were popping the corks at significant milestone for an institution that has been seeking to M&T,” RBC Capital Markets analyst diversify its exposure to commer- Gerard Cassidy said.

It was good news becial real estate. cause the Buffalo-based Property loans account bank is a big hotel lender for about 40% of M&T’s in New York City, with cliloan portfolio, more than twice that of peers. In ents such as the TWA Ho2020 the Federal Reserve tel at John F. Kennedy Indetermined M&T’s capiternational Airport and the Financial District’s tal levels would be the Hilton Garden Inn. lowest of 33 major U.S. M&T was heavily exlenders in a “severely adposed when the pandemverse” economic scenarAARON ELSTEIN ic emptied hotels and ofio. Weeks after that news fices. Last year bank the bank agreed to buy Connecticut-based People’s United officials said they would dial it Financial, a $7.6 billion deal that down and explore “more capiwould expand M&T’s geographic tal-friendly ways to participate” in reach and at the same time dilute commercial real estate finance. A its concentration of property loans, $125 million M&T loan to the Fiespecially those for New York ho- nancial District’s Beekman Hotel

was refinanced by Bank OZK for $130 million in January, according to city records.

M&T’s $1.5 billion in reserves is lower than its $2.1 billion of non-

performing loans, which bears say is a sign the bank is skating on thin ice. Bulls such as Cassidy take comfort from reserves equaling 1.6% of total loans, the same as Wells Fargo.

Regulatory approval of M&T’s deal with People’s was held up while the Biden administration continued to scrutinize corporate mergers to see if they harm competition. Rep. Maxine Waters, chair of the House Financial Services Committee, has called for a moratorium on all bank mergers spawning institutions with more than $100 billion in assets.

M&T has about $150 billion in assets and will grow to more than $210 billion after completing the acquisition. Results of the next Fed stress test, which envisions an even bleaker economic scenario than the 2020 test, will be released in June. ■

ON POLITICS

Adams’ massive boost for city jails, including Rikers, allows human rights catastrophe to fester

T

wo months into the Eric municipal agencies, a notable Adams administration, few move at a time when the city is still new policies have been awash in federal funds and not facproposed. No memorable ing a dire fiscal environment. He is ideas for the future of the city have seeking to trim funds from the Debeen floated. For now, Adams has partment of Education and end a been content to manage on the popular composting program. He is margins and cheerlead for the not boosting parks funding as Covid-battered city, all the while promised.

City Council members are beginstepping into and out of various ning to marshal against Adams’ controversies.

Adams’ proposed $98 billion bud- budget, which will be negotiated in the coming months, beget for the upcoming fiscal fore the start of the fiscal year is not a major deparyear in July. The council ture from the de Blasio must vote to approve it. years. The most welcome Conditions at Rikers development was a call for have devolved under multhe expansion of the sumtiple mayors, and the isomer youth employment lated jail complex has program, which was tembeen plagued by violence porarily gutted in 2020. for many decades. MiPolice Department fundchael Bloomberg and Bill ing, meanwhile, remains ROSS BARKAN de Blasio alike failed to roughly flat. meaningfully improve The most troubling and politically motivated decision Ad- conditions at the complex, where ams has made, perhaps, was to inmates and guards frequently subject other agencies to his scal- clash. In the past year violence at pel but not the Department of Cor- Rikers has only escalated.

Adams, a former police captain, rection. Adams proposed boosting the scandal-scarred agency by is a staunch defender of COBA. He more than $52 million. The depart- has reinstated solitary confinement ment oversees the city’s jails, in- and echoed the union’s calls for including Rikers Island, and the in- creased officer headcount. The crease in funds was sought by the challenge at Rikers, as The New powerful Correction Officers’ Be- York Times reported last year, is that correction officers don’t have to fill nevolent Association.

Adams is seeking cuts to most posts at housing units, even if

they’re called to address inmate unrest. Hundred have been stationed elsewhere in less dangerous positions, including as laundry room supervisors, secretaries and bakers. The least experienced officers are often charged with overseeing inmates.

Compounding the problem is the unlimited sick leave won by COBA in the 1970s. Officers can take sick leave for almost any reason and rarely face reprisal for abusing the policy. The de Blasio administration blamed staff absenteeism for the spike in violence but had relatively little recourse.

“We are wasting money here,” Vincent Schiraldi, a former DOC commissioner, told the Times last year. “We pay so many people to not do the job we want or need them to do. We pay them to stay home sick, we pay them to be bakers instead of correction officers or administrative assistants instead of correction officers.”

Spending is inordinately high. In New York, each inmate costs more than $400,000 annually in taxpayer money. That’s far more than in any other American city. Although de Blasio oversaw the passage of a plan to shutter Rikers and build smaller borough-based jails, it’s unclear whether Adams will implement such a proposal.

Unfortunately, the mere move to

BUCK ENNIS

In a budget with mostly flat funding or big cuts, Adams adds $52 million to Correction for political purposes

boost DOC funding demonstrates the Adams administration is not taking the reform of Rikers seriously. What is the purpose of more funding when there’s so much waste and corruption already?

What will really change?

It will be up to the City Council, a body made up largely of freshmen, to be a check on Adams and deliver a budget that can account for the tragic reality of the city’s jails. Lawmakers must push Adams to close Rikers in a timely manner and reform how the DOC spends taxpayer dollars. If they don’t—and Adams gets his way—they will be allowing a human rights catastrophe to fester.

Short takes ● Activist Ana Maria Archila is the Working Families Party’s candidate

for lieutenant governor against Lt. Gov. Brian Benjamin, Gov. Kathy Hochul’s running mate. Archila is a long shot, but she may have a better chance than Jumaane Williams, who will be vastly outspent. ● Adams still needs to think creatively about getting more tourists back to New York. The future of the city depends on hitting pre-Covid levels sooner rather than later. ● Adams is right, though, about his declaration that Russians in New York shouldn’t be targeted for hate crimes in the wake of Russia’s invasion of Ukraine. It’s not the fault of Russian immigrants and citizens abroad that their leader is a dangerous tyrant. ■ Ross Barkan is a journalist and author who lives in New York City.

6 | CRAIN’S NEW YORK BUSINESS | MARCH 14, 2022

P006_CN_20220314.indd 6

3/11/22 4:29 PM

HEALTH CARE

BY SHUAN SIM

D

espite a modest stockpile of oral Covid treatments, New York City says it is ready to carry out the new federal initiative to treat patients who test positive on the spot.

The Department of Health and Human Services last Tuesday outlined details for the Test to Treat initiative, introduced by President Joe Biden in his State of the Union address. The program allows individuals who receive a positive Covid test result to receive treatment with antiviral pills then and there. It kicked off last Monday, and participating pharmacy-based clinics, federally qualified health centers and long-term-care facilities are eligible to receive direct distributions of molnupiravir and Paxlovid from HHS. Molnupiravir was developed by Merck and Ridgeback Biotherapeutics, and Paxlovid comes from Pfizer.

The initiative will tap a separate federal supply that will not affect current state allocations that are going to other sites and providers.

Providers that can obtain those treatments outside of Test to Treat

were directed to consider treating newly diagnosed patients on the spot.

A federal Test to Treat website to locate participating pharmacies is expected to launch midmonth. Patients do not have to be tested at a Test to Treat site to receive treatment with the medication.

Placing orders

A SOLID SUPPLY

57K

COURSES OF antiviral pills available for providers to access in the state, the seventh-highest in the nation

13K

City providers were eligible to order more than 20,088 courses of the two drugs, and they had more than 14,386 available on hand. Of that amount, local facilities could order 13,968 courses of molnupiravir, and 12,013 were available at 11 sites.

For Paxlovid, city providers could order 6,120 courses and had 2,373 on hand at six sites.

“We have enough supply to meet current demand, and we are prepared to get more when needed,” said Michael Lanza, a spokesman for the city Department of Health and Mental Hygiene.

Pharmacies across the country have reported having trouble accessing COURSES OF Paxlovid. Biden, in his the medications address, said Pfizer is exavailable at Alto pected to deliver an addiPharmacy, the tional 1 million courses city’s exclusive of the pill this month. provider of New York state is sevantiviral pills enth in the nation for acMitigating risk cessing these oral treatments, which are ordered When asked about getthrough the federal government. As ting the treatments into the hands of March 2, New York providers of New Yorkers, Lanza pointed to were eligible to order 56,948 cours- the free same-day, at-home delives of molnupiravir and Paxlovid ery program for Covid treatments, combined across the state, of which established in January and conover 44,0348 were on hand, accord- ducted in partnership with Alto ing to HHS data.

Pharmacy in Midtown. The compa-

REUTERS/JENNIFER LORENZINI

City says it is ready to take on Test to Treat initiative

ny is the exclusive provider of the city’s supply of antiviral pills until the supply increases sufficiently to stock multiple pharmacy partners.

Alto’s availability of molnupiravir and Paxlovid outstripped other locations by far—as of March 2, it had 11,334 courses of molnupiravir and 2,010 courses of Paxlovid. The next closest facility with a stockpile of that scale was the Sunset Terrace Family Health Center at NYU Langone, with just 400 courses of molnupiravir, and BronxCare Medical and Dental at Poe, with 200 courses of Paxlovid.

“Our city’s public health care system is seeing a decline in Covid-19 hospital admissions, but we are still

“WE HAVE ENOUGH SUPPLY, AND WE ARE PREPARED TO GET MORE” very busy treating severely ill patients,” said Dr. Mitchell Katz, president and CEO of NYC Health + Hospitals, during the program’s launch.

“Free at-home delivery of these antiviral pills will keep high-risk New Yorkers out of the hospital so we can immediately free up critical resources.” ■

Men have always been the default in medicine, which has left women understudied, undertreated and misdiagnosed. Northwell created the Katz Institute for Women's Health, the only network of experts devoted to every aspect of women's care.

Because when we raise the health of women, we raise everyone.

Be a Health Raiser at RaiseHealth.com/Women

A REVOLUTION IN WOMEN'S HEALTH HAS BEGUN MARCH 14, 2022 | CRAIN’S NEW YORK BUSINESS | 7

P007_CN_20220314.indd 7

3/11/22 4:54 PM

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

EDITORIAL

publisher/executive editor

City must invest to maintain momentum behind emerging life science industry

Frederick P. Gabriel Jr. EDITORIAL editor-in-chief Cory Schouten,

cory.schouten@crainsnewyork.com managing editor Telisha Bryan

T

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, 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 ISTOCK

he city has invested more than $1 billion in life science and biotech infrastructure in recent years to help New York entrants keep pace with companies hatched in the heavyweight clusters of Boston and San Francisco.

Those investments have paid off, with at least 10 thriving incubator programs—including BioLabs@NYULangone in Hudson Square, Johnson & Johnson’s JLabs in SoHo and the Alexandria Center for Life Science in Kips Bay—along with a small army of companies pursuing promising breakthroughs.

But a brewing storm of tax laws, market softness and supply chain problems could threaten the city’s meteoric rise as a life science player, reporter Shuan Sim writes in his cover story this week.

A key concern is a federal tax law change that requires compa-

rather than all at once, a rule that hits hard for precommercial companies for which R&D can comprise 90% of expenses.

Also worrying are a stock-market pullback that has left investors with less risk appetite and lingering supply

WE MUST ENSURE LIFE SCIENCE FIRMS CAN FOCUS ON THE SCIENCE ITSELF nies to expense research-and-development costs over five years,

chain hiccups that make equipment hard to come by.

Local players say New York’s life science scene has the momentum and financial backing to weather the storm. But the tumultuous moment calls for the city to double down on its nascent cluster.

Local governments should continue to offer financial investment and leverage the full

menu of intangible advantages New York can offer, from investment capital to strategic advice to talent for hire. Renew and expand tax breaks for incubator firms, enact favorable zoning for life science projects and incentivize training programs for industry talent.

Above all, ensure New York’s emerging life science firms can focus on the science itself. ■

N

account executives Kelly Maier, Marc Rebucci,

Laura Warren people on the move manager Debora Stein,

dstein@crain.com CUSTOM CONTENT associate director, custom content

Sophia Juarez, sophia.juarez@crainsnewyork.com custom content coordinator Ashley Maahs,

ashley.maahs@crain.com EVENTS

www.crainsnewyork.com/events manager of conferences & events senior manager of events Michelle Cast,

It’s time to get back to the office, but flexibility will be the key to success early a year ago, when I became chief operating officer of the Federal Reserve Bank of New York, I joined the legions of people who started a new job remotely.

I was excited to meet my colleagues and work for such a venerable institution. But back then, as I sat at my dining room table three time zones from New York City, I felt disconnected. Only in the summer of 2021—after I had moved my family across the country and met some of my coworkers inside our historic Liberty Street headquarters—did I feel a true sense of belonging.

That is why I couldn’t wait to welcome all my colleagues back to the office. Through our new flexible work model, which launched Feb. 28, employees are working on-site a couple of days a week on a schedule that works for them.

We were deliberate in making

sales manager Courtney McCombs

Ana Jimenez, ajimenez@crainsnewyork.com

OP-ED

BY NAUREEN HASSAN

assistant managing editor Anne Michaud

this decision. We implemented new health protocols, conducted a pilot program and invested in training and technology to ensure everyone—on-site and at home— could collaborate effectively. As an organization that prides itself on its ability to act during times of change, we will continue to adapt along the way, and we are committed to ensuring our employees are treated fairly and equitably.

Best of both worlds Our new model offers the best of both worlds. We’re retaining the flexibility of remote work— seeing kids off at the bus, ducking out for a doctor’s appointment or catching an after-school activity.

Without a daily commute, we have more time to exercise, be with our families and continue the hobbies we picked up during the pandemic.

But coming into the office also has benefits, such as collaborating on strategy, brainstorming a new

project, coaching junior colleagues, training in professional development and getting to know a coworker over coffee. These kinds of in-person interactions built a foundation that enabled the New York Fed to navigate the challenges of the pandemic so successfully after March 2020, when most of our employees were forced to work from home. New employees have been hired, and many colleagues have taken on new responsibilities. Now it’s time to re-establish those connections so that we can fulfill our mission.

Remote work can make it difficult to be inclusive and collaborative. Employees—especially our junior colleagues—don’t always feel comfortable speaking up in big video meetings. There’s a reason that before Covid-19, businesses were moving toward open floor plans. All employees, from entry level to the most senior, could interact together freely, sparking informal collaboration

and impromptu brainstorming— the building blocks of innovation.

Above all, working together in person creates a sense of community.

That community extends beyond our office doors. We draw and learn from physically working in the communities that we serve.

Supporting the economy of the Second District is a vital part of our mission. We are important to the fabric of Lower Manhattan, and we want it to thrive.

When we reopened the doors to our headquarters, it was exciting to watch employees greet coworkers they hadn’t seen in nearly two years—and meet our new colleagues in person for the first time.

With coronavirus cases on the decline, it’s time to get back to the office—in a way that is best for our employees and the Second District. ■

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

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

Simone Pryce media services manager Nicole Spell SUBSCRIPTION CUSTOMER SERVICE

www.crainsnewyork.com/subscribe customerservice@crainsnewyork.com 877.824.9379 (in the U.S. and Canada). $140.00 one year, for print subscriptions with digital access.

Entire contents ©copyright 2022 Crain Communications Inc. All rights reserved. ©CityBusiness is a registered trademark of MCP Inc., used under license agreement.

CRAIN COMMUNICATIONS INC. chairman Keith E. Crain vice chairman Mary Kay Crain chief executive officer K.C. Crain senior executive vice president Chris Crain editor-in-chief emeritus Rance Crain chief financial officer Robert Recchia founder G.D. Crain Jr. [1885-1973] chairman Mrs. G.D. Crain Jr. [1911-1996]

Naureen Hassan is chief operating officer of the Federal Reserve Bank of New York.

8 | CRAIN’S NEW YORK BUSINESS | MARCH 14, 2022

P008_CN_20220314.indd 8

3/11/22 5:20 PM

LETTER TO THE EDITOR

YOUR ARTICLE “After the hospital leaves town,” published Feb. 28, states that “marginalized communities lose health care access” when hospitals close and that New York City’s “legacy of hospital consolidation risks widening longstanding health disparities by forcing already underserved New Yorkers to travel farther for medical care and spend more to get it.”

The facts do not support this premise.

First, hospital consolidation has bolstered the availability of high-quality health care resources in underserved communities of color. One of the city’s first mergers—between Midtown’s New York Hospital and Washington Heights’ Columbia-Presbyterian Medical Center—ensured that the new health system would care for vast numbers of low-income New Yorkers of color. In 2013 New York-Presbyterian expanded its commitment to serving vulnerable communities by acquiring New York Downtown Hospital.

Also in 2013, Mount Sinai Hospital established a footprint in multiple new communities

(including underserved ones) by acquiring St. Luke’s-Roosevelt Hospital, Beth Israel Medical Center and New York Eye and Ear Infirmary. In 2016 NYU Langone Health acquired Brooklyn’s Lutheran Medical Center. The Journal of the American Medical Association recently published a study describing significant quality improvements at the Brooklyn campus because of the NYULutheran merger. Montefiore Health System acquired hospitals in Mount Vernon and New Rochelle that serve communities of color to keep them from closing.

Second, there has been a significant transformation away from inpatient hospitalizations and toward outpatient ambulatory care. As this trend gained momentum, some financially struggling hospitals closed or consolidated because health-planning agencies determined that their low occupancy rates, underutilization and poor financial condition made it impossible for them to provide high-quality care.

Outpatient ambulatory services have filled this void. The full-ser-

vice emergency department and medical complex at Lenox Hill Greenwich Village, which Northwell Health established at the site of the former St. Vincent’s Hospital in Manhattan, provides critical health care services while transferring the small number of patients who require inpatient services.

Montefiore has opened a similar facility on its Hutchinson campus in the Bronx. One Brooklyn Health, created through the merger of three safety-net hospitals, is converting the Kingsbrook Jewish Medical Center campus to a medical village with ambulatory services. Very simply, the closure of inpatient services at New York City hospitals in the past decade has not eliminated health care services at those sites.

Third, you can consolidate yourself out of business. Every health system is mindful of what happened to St. Vincent Catholic Medical Centers, a system that collapsed in massive debt, mostly from the weight of acquiring five financially struggling Catholic hospitals serving large indigent communities across Brooklyn and

ELLEN WEINSTEIN

Another take on hospital consolidations

These Medicaid rates affect everyone—the five largest private health systems in the New York City area are collectively responsible for more than 45% of the Medicaid inpatient discharges in the downstate region and 38% in New York City. These systems are deeply committed to serving vulnerable communities of color and reducing health disparities, but for independent safety-net hospitals to survive, the government must significantly increase its support for them.

We strongly support Gov. Kathy Hochul’s proposals in this year’s state budget to provide close to $2 billion in operating support for safety-net hospitals along with an unprecedented $1.6 billion health care capital program.

But more is needed to ensure the lasting stability of these hospitals.

That’s why Greater New York Hospital Association, in collaboration with Local 1199 of the Service Employees International Union, is advocating for more Medicaid funding in the state budget and for additional funding from the federal government.

KENNETH E. RASKE President Greater New York Hospital Association

Queens. Health systems must carefully weigh the financial risk to the mainframe before coming to the aid of struggling independent hospitals.

Still, many academic medical centers provide assistance to safety-net hospitals without taking on financial risk through clinical affiliations such as Mount Sinai’s with Richmond University Medical Center and Northwell’s with Maimonides Medical Center and Wyckoff Heights Medical Center.

Fourth, the government’s indispensable role in keeping independent hospitals viable must be strengthened. A key driver of hospital closures is Medicaid woefully underpaying New York hospitals. New York’s Medicaid program covers less than 65% of hospital costs.

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.

Stronger Together.

We are pleased to announce that Marks Paneth LLP has joined CBIZ & MHM – together, one of the nation’s Top Ten accounting providers.

While our name has changed, our personal approach to serving our clients has not.

cbiz.com | mhmcpa.com

Effective January 2022

MHM (Mayer Hoffman McCann P.C.) is an independent CPA firm that provides audit, review and attest services, and works closely with CBIZ, a business consulting, tax and financial services provider. CBIZ and MHM are members of Kreston International Limited, a global network of independent accounting firms. © Copyright 2022. CBIZ, Inc. and Mayer Hoffman McCann P.C. All rights reserved.

MARCH 14, 2022 | CRAIN’S NEW YORK BUSINESS | 9

P009_CN_20220314.indd 9

3/10/22 3:52 PM

ASKED & ANSWERED

INTERVIEW BY MAYA KAUFMAN

WHO SHE IS City councilwoman representing District 23 in eastern Queens

C

ity Councilwoman Linda Lee has spent decades working to improve access to mental health care and social services for New Yorkers, first as a camp counselor for the city’s at-risk youth and most recently as CEO of Korean Community Services, a Queensbased nonprofit that runs a bilingual mental health clinic and targets the Korean population.

Now Lee is continuing that work in public office. In 2021 she became the first Korean American ever elected to the City Council, after winning a seat representing eastern Queens. She has since been appointed chair of the mental health committee, a role she plans to use to push for more investment in assistance, particularly for New Yorkers who speak languages other than English.

It’s been about a month since the death of Michelle Go, who was pushed onto the subway tracks by a homeless man with a history of mental illness. What has been your reaction to this news?

This incident has shown that we have a very broken mental health care system. If you look at Martial Simon, who was the one that pushed her, he had been in and out of the mental health system. We have a lot of systems in place, but everything is very siloed. If I’m facing homelessness but also suffering from a mental illness, how is the Department of Homeless Services coordinating

Oftentimes, there’s a lack of understanding of what the challenges are on the ground. You create a policy thinking it’s a great idea, but it actually causes more frustration and challenges for nonprofits that have to follow these rules and regulations.

AGE 42

How do you increase investments in care when the mayor is proposing budget cuts?

BORN Elmira, New York

One thing the mayor could do is create some sort of communication pipeline where the different agencies can talk to each other.

Right now every city agency has their own way of reporting, so you’re not necessarily comparing apples to apples.

GREW UP Albertson, New York RESIDES Oakland Gardens, Queens EDUCATION Bachelor’s in economics, Barnard College; master’s in social enterprise administration, Columbia University School of Social Work SUMMER SERVICE Lee was inspired to pursue social-services work after spending a summer in college as a counselor at Mont Lawn Camp. Located in the Poconos, the faith-based program for underserved children in the city is run by the Bowery Mission.

PITCH PERFECT Lee used to be in an indie-rock band as a vocalist and keyboard player. “I don’t even remember what it was called because we kept changing our name,” she said.

with the Department of Health and Mental Hygiene to make sure I’m getting the services I need? There’s a lot of places where people can fall through the cracks.

What are politicians missing about mental health and homelessness?

What role can the private sector play in this?

Obviously, we need more funding from the private sector. I think insurance companies have a role to play when it comes to access to health care. CAIPA [the Chinese American Independent Practice Association], for example, had so many providers in their network, they went to the health insurance company and said, “We have X number of patients, and this is what we need to see in our community.” They were actually able to make changes. We can model that to say if someone has insurance coverage, instead of only allowing them four mental health sessions a year, let’s up that number. The other challenging piece is it’s difficult to find someone that will take insurance.

Will there be a shift in employee benefits?

I hope so. That is another thing I’m hoping that insurance companies can rethink. If we’re encouraging folks to get your annual checkup— your physical—it should be the same with mental health. We should allow folks more mental health benefits, to take time that they need. ■

BUCK ENNIS

LINDA LEE New York City Council

DOSSIER

Thursday, May 5, 2002 | 8:30 – 10:00 a.m.

The Covid-19 pandemic has exacerbated health disparities in New York City. Providers and public officials have made great strides to remedy those inequalities, from prioritizing hard-hit communities for the vaccine rollout to expanding telehealth services, but New Yorkers continue to slip through the cracks.

Join us on May 5 to hear from stakeholders representing hospitals and community health clinics, public policy experts, entrepreneurs, and advocates to discuss how to make the health care system more equitable and ensure New Yorkers get the care they need.

In-Person Event

Learn more at CrainsNewYork.com/MayForum 10 | CRAIN’S NEW YORK BUSINESS | MARCH 14, 2022

P010_CN_20220314.indd 10

3/11/22 1:25 PM

PUBLIC RELATIONS

REAL ESTATE

Torossian vacates Manhattan’s luxury real estate his position as the shopping spree isn’t slowing down chief exec of 5WPR

BY NATALIE SACHMECHI

R

GETTY IMAGES

onn Torossian, the embattled CEO of 5WPR, told staffers on the evening of March 4 that he was stepping down as CEO of the company because, he said, “I have become a distraction and the team deserves the freedom to operate in a context free of noise—noise I personally created.”

Torossian came under intense pressure from the public relations industry after Crain's New York Business reported he had secretly purchased an industry news site, Everything-PR.com, back in 2014 and then used it to bash competitors while boosting his own firm and its clients using the names of fake journalists. He purchased the site from Mihaela Lica Butler in 2014. She previously ran it with her husband, Phil TOROSSIAN Butler, who was its editor in chief.

But as Crain’s reported, Torossian erased their names and those of other contributors from the archives and replaced them with made-up ones. Phil Butler said he and his wife “begged Ronn to restore our names, but he refused.”

The “noise level” exploded only two days after Crain’s published an article in February in which the New York chapter of the Public Relations Society of America called him a “stain on the industry.”

Within days the Hispanic Public Relations Society condemned him, and days later Richard Edelman, CEO of Edelman Public Relations, one of the nation’s largest PR firms, also issued a blistering condemnation.

The mayor’s ear Only months before Torossian seemed to be riding high, portrayed in some press reports as a “confidant of Eric Adams.” Though Torossian was never involved in policy sessions and was not on the official payroll, he helped introduce Adams to media, sports and entertainment figures in Manhattan while the former Brooklyn borough president was mounting his successful mayoral campaign.

Torossian had helped Adams get into the exclusive NoHo members-only club Zero Bond and secured the mayor-elect publicity for appearing there. For a while it appeared to be Adams’ unofficial transition headquarters.

But staffers bristled at the outsider who seemed to have the mayor’s ear, especially when it turned out Torossian was the longtime representative of the adult website Pornhub and its parent company,

Mind Geek.

One longtime Democratic Party operative assailed the mayor for hobnobbing with Torossian and urged him to “move away as quickly as possible.” Adams later canceled a series of fundraisers—including one at Zero Bond arranged

by Torossian.

‘Lapse in judgment’ Pressure intensified after the Crain’s article on Feb. 16 revealed that Torossian was scrubbing the Everything-PR site of controversial stories and had replaced the names of the fake journalists that populated the site since he took over with the anonymous byline “By EPR staff” on virtually all stories in its archives.

After the New York chapter of the PRSA issued its blistering condemnation, two days later Torossian finally admitted—after denying for years that he owned the site—that he had indeed bought it in 2014. He said it was a “lapse in judgment” to have hidden his ownership for nearly eight years. He also acknowledged “ethical lapses” in the early years following the founding of the firm.

Torossian said March 4 that although he is stepping down from the CEO role, he will remain 5WPR’s owner and chairman. Two longtime associates, Co-presidents Dara Bush and Matt Caiola, will become co-CEOs, overseeing the dayto-day decisions.

“I started 5WPR at the age of 28 in December 2002. Today, nearly 20 years later, we employ 275 people and are one of America’s largest and leading PR agencies,” Torossian said. “We have done many great things together. But I have also made many mistakes.”

He said he has “zero interest in selling.”

But some PR pros are not buying his mea culpa and question why he should be allowed to continue to profit from the company.

“Why would an innocent man step down as CEO from the company he founded and ran? He wouldn't,” said Ken Frydman, head of Source Communications, who was slammed in an Everything-PR .com story years after he beat out Torossian's firm for a contract. The original negative story is among those scrubbed from the site in recent weeks.

Aaron Kwittken, founder and chairman of KWT Global, had also been subject to negative stories on Everything-PR before it was disclosed that Torossian owned it.

“The damage is already done,” Kwittken said. “This move is merely a distinction without a difference.” ■

I

t just keeps getting better for Manhattan’s luxury real estate market.

The number of contracts signed for properties worth $4 million or more reached 41 for the week that ended March 4, a new high for the year, according to data from Olshan Realty.

That’s seven more deals than the previous week, which closed out February. During the first two months of 2022, 244 contracts were signed for luxury properties, which is the strongest start of any year since the brokerage began keeping track in 2006.

Sales volume totaled nearly $281 million the week that ended March 4, compared with nearly $273 million the week before. The average discount from the asking price crept down to just 2%.

The most expensive deal two weeks ago was Penthouse C at the Naftali Group and Rockefeller Group’s brand-new luxury condo building at 200 E. 83rd St. on the

BLOOMBERG

BY KEITH J. KELLY

Upper East Side. The unit was asking $32.5 million, up from the $30 million it was being marketed for in May 2021.

The duplex unit has six bedrooms, six and a half bathrooms, four terraces and views of Central Park. The building features a 70foot pool, yoga and massage rooms, a movie theater, a lounge and a game room. More than 90% of the units have already sold, and the building is not yet completed.

The second-largest contract was

for a 47th floor unit at Extell Development’s Billionaires Row building, One57, at 157 W. 57th St. The seller was asking $14.4 million, down from the $17 million Extell sought when the unit was first listed in 2013.

The three-bedroom, three and a half bathroom condo features views of Central Park from the south side.

Residents of the building may use the adjacent Park Hyatt’s hotel services, and the building has a fitness center, a pool, a private restaurant, performance space and a garage. ■

LUXURY HOME OF THE WEEK Advertising Section

European Farmhouse with Southern Sophistication distinguished luxury home in Atlanta

Scan the QR code for the listing info

The above information is believed to be accurate but is not warranted. Offer subject to errors, changes, omissions, prior sales and withdrawals without notice.

MARCH 14, 2022 | CRAIN’S NEW YORK BUSINESS | 11

P011_CN_20220314.indd 11

3/10/22 3:59 PM

THE LIST LARGEST LOBBYISTS City firms ranked by total compensation CONTINUED DECLINE

CLIENTS FALL

After peaking in 2019, total compensation for city lobbyists continued to fall, dropping 2% since 2020.

The number of clients served by city lobbyists fell by 6% for the second consecutive year.

Total lobbyist compensation (in millions)

$120

2,500

$104.2 2,000

$100

2,168

1,500

$80

$60

Total clients

1,000 ’12

’13

’14

’15

’16

’17

’18

’19

’20

’21

’12

’13

REAL ESTATE PAYS UP

TOP TARGETS

Consistent with past years, the largest share of client interests falls under real estate. Health and mental hygiene's presence has grown for the third year in a row, while tech saw a jump for the second consecutive year.

Portion of targets

Distribution of clients’ interests

Real Estate, construction, engineering and development

’15

’16

’17

’18

’19

City Council and staff

Community boards

43% 5%

38% Public, community interest and not-for-profit organization 16% Health and mental hygiene 6% Technology and other media 5% Banking and financial services 5%

’14

Mayor

6% 6%

’20

’21

$1.3M SIZE OF THE largest 2021 lobbying contract, paid by South Street Seaport Limited Partnership to Fried, Frank, Harris, Shriver & Jacobson LLP

40% Borough presidents

City agencies SOURCE: Crain’s analysis of Lobbying Bureau data from the Office of the City Clerk

PHONE/ PHONE/ WEBSITE WEBSITE

TOP EXECUTIVE(S) EXECUTIVE(S) TOP

2021 LOBBYIST LOBBYIST 2021 COMPENSATION COMPENSATION (IN MILLIONS)/ MILLIONS)/ (IN % CHANGE CHANGE VS. VS. 2020 2020 11 %

2021 CLIENTS CLIENTS 2021 REGISTERED/ REGISTERED/ % CHANGE CHANGE VS. VS. 2020 2020 22 %

2021 TOTAL TOTAL 2021 EMPLOYEES 33 EMPLOYEES

YEAR YEAR FOUNDED FOUNDED

RANK RANK

COMPANY COMPANY

1 2 3 4 5 6 7 8 9 10

Kasirer Kasirer 321 Broadway Broadway 321 New York, York, NY NY 10007 10007 New

212-285-1800 212-285-1800 kasirer.nyc kasirer.nyc

Suri Kasirer Kasirer Suri President President

$15.5 $15.5 +9.2% +9.2%

222 222 0.0% 0.0%

31 31

1997 1997

Capalino Capalino 233 Broadway Broadway 233 New York, York, NY NY 10279 10279 New

212-616-5810 212-616-5810 capalino.com capalino.com

James Capalino Capalino James Chief executive executive Chief

$8.0 $8.0 -19.3% -19.3%

175 175 -24.9% -24.9%

28 28

2000 2000

Bolton-St. Johns Johns Bolton-St. 7 World World Trade Trade Center Center 7 New York, York, NY NY 10007 10007 New

212-431-4748 212-431-4748 boltonstjohns.com boltonstjohns.com

Giorgio DeRosa, DeRosa, Bill Bill McCarthy, McCarthy, Emily Emily Giske, Giske, Tom Tom Connolly, Connolly, Giorgio Mike Keogh, Keogh, Juanita Juanita Scarlett, Scarlett, Patrick Patrick McHugh, McHugh, Teresa Teresa Gonzalez, Gonzalez, Mike Samara Daly, Daly, Anne Anne Marie Marie Anzalone, Anzalone, John John Albert, Albert, Violet Violet Moss Moss Samara Partners Partners

$7.2 $7.2 +6.8% +6.8%

141 141 +6.0% +6.0%

34 34

1992 1992

Constantinople & & Vallone Vallone Consulting Consulting LLC LLC Constantinople 233 Broadway Broadway 233 New York, York, NY NY 10279 10279 New

212-393-6500 212-393-6500 candvconsulting.com candvconsulting.com

Peter Vallone Vallone Sr., Sr., Anthony Anthony Constantinople, Constantinople, Tony Tony Constantinople, Constantinople, Peter Perry Vallone Vallone Perry Partners Partners

$6.1 $6.1 +7.3% +7.3%

108 108 +9.1% +9.1%

17 17

1998 1998

Pitta Bishop Bishop & & Del Del Giorno Giorno LLC LLC Pitta 120 Broadway Broadway 120 New York, York, NY NY 10271 10271 New

212-652-3890 212-652-3890 pittabishop.com pittabishop.com

Vito Pitta Pitta Co-managing Co-managing member, member, Vito Jon Del Del Giorno Giorno Founding Founding member, member, Jon Vincent Pitta Pitta Chairman, Chairman, managing managing member, member, Vincent Robert Bishop Bishop Founding Founding member member Robert

$5.0 $5.0 +3.1% +3.1%

93 93 +2.2% +2.2%

15 15

2008 2008

Fried, Frank, Frank, Harris, Harris, Shriver Shriver & & Jacobson Jacobson LLP LLP Fried, 1 New New York York Plaza Plaza 1 New York, York, NY NY 10004 10004 New

212-859-8000 212-859-8000 friedfrank.com friedfrank.com

David Greenwald Greenwald David Chairman, partner partner Chairman,

$4.8 $4.8 +50.6% +50.6%

n/d n/d

n/d n/d

1971 1971

Greenberg Traurig Traurig LLP LLP Greenberg 200 Park Park Ave. Ave. 200 New York, York, NY NY 10166 10166 New

212-801-9200 212-801-9200 gtlaw.com gtlaw.com

John Mascialino Mascialino John Chair of of New New York York City City government government law law and and policy policy practice practice Chair

$4.2 $4.2 -9.1% -9.1%

104 104 -8.0% -8.0%

25 25

1967 1967

Davidoff Hutcher Hutcher & & Citron Citron LLP LLP Davidoff 605 Third Third Ave. Ave. 605 New York, York, NY NY 10158 10158 New

212-557-7200 212-557-7200 dhclegal.com dhclegal.com

Sid Davidoff Davidoff Sid Founding partner, partner, chair chair of of government government relations relations Founding

$3.1 $3.1 -5.6% -5.6%

62 62 -10.1% -10.1%

20 20

1975 1975

MirRam Group Group MirRam 215 Park Park Ave. Ave. South South 215 New York, York, NY NY 10003 10003 New

212-505-6633 212-505-6633 mirramgroup.com mirramgroup.com

Luis Miranda, Miranda, Roberto Roberto Ramirez Ramirez Luis Founding partners, partners, Founding Eduardo Castell, Castell, Managing Managing partner partner Eduardo

$3.0 $3.0 n/d n/d

n/d n/d

n/d n/d

2000 2000

CMW Strategies Strategies LLC LLC CMW 233 Broadway Broadway 233 New York, York, NY NY 10279 10279 New

212-437-7373 212-437-7373 cmw.nyc cmw.nyc

Michael Woloz Woloz Michael President, chief chief executive executive President,

$3.0 $3.0 -4.6% -4.6%

63 63 -3.1% -3.1%

n/d n/d

1988 1988

Source Source: Lobbying Lobbying Bureau Bureau at at the the Office Office of of the the City City Clerk, Clerk, with with additional additional research research by

by Amanda Amanda Glodowski.

Glodowski. Data Data is is self-reported self-reported to to the the Lobbying Lobbying Bureau Bureau and and is is subject subject to to change. change. n/d-Not n/d-Not disclosed. disclosed. 1Cumulative compensation compensation reported reported by by the the lobbyists lobbyists 1---Cumulative Source Source: in their their periodic periodic reports. reports. 2Includes clients clients and and lobbyist/client lobbyist/client filers filers that that reported reported retaining retaining an an outside outside lobbying lobbying entity entity in in statements statements of of registration. registration. 3Based on on employees employees listed listed on on statements statements of of registration registration filed filed by by lobbyists. lobbyists.

2---Includes 3---Based in 12 | CRAIN’S NEW YORK BUSINESS | MARCH 14, 2022

P012_CN_20220314.indd 12

3/10/22 12:28 PM

POLITICS

Exclusive: Paterson, another who suddenly became NY’s governor, holds forth on Hochul and Cuomo

BY BRIAN PASCUS

NEWSCOM

F

ormer Gov. David Paterson held nothing back in an exclusive interview with Crain’s in which he explained how Gov. Kathy Hochul’s sudden ascent to office differed from his own unexpected takeover and examined the downfall of his successor, Andrew Cuomo.

Today Paterson, 67, lives in New York City and is a senior vice president at Las Vegas Sands Corp. He has been a distinguished professor of health care and public policy at Touro University since 2013. More than 12 years after leading the state, Paterson now watches the affairs in Albany from afar and can’t help but contrast his own experience with Hochul’s.

“When a governor resigns in disgrace, there’s a leadership crisis,” he said, noting a similarity right off the bat. “But I think that the two of us had the opposite challenge. My challenge was that when I came into office, I had to pass the budget in two weeks. I didn’t have to worry about an impending primary, and I didn’t have to worry about the political side like Gov. Hochul [does].”

From 2008 to 2010, Paterson served as New York’s 55th governor.

He succeeded former Gov. Eliot Spitzer after the latter resigned because of a sex scandal. As the state’s first Black and legally blind governor, Paterson shattered two barriers upon assuming office. But his administration was almost immediately engulfed by the 2008-09 Great Recession, and he spent much of his half-term consumed by the worst fiscal crisis since the 1970s.

Paterson emphasized the difference in the state’s current fiscal situation—which includes a $30.7 billion surplus—with that of his own administration, which faced a $21.3 billion deficit five months after he took office.

He said he is “insanely jealous” of Hochul and the $30 billion in available assets at the governor’s disposal. He acknowledged that she had “done quite well” in shoring up support from the Democratic Party since taking office in August.

“Certainly, the political community is supporting her. She’s raised $16 million,” he said. “I think that things are going well. Her tougher primary opponents are not running, so it will seem she has no problem with winning re-election.”

The main reason Paterson doesn’t think Hochul will have any trouble winning the general election is because she’s proved adept at organizing her budget and campaign priorities simultaneously.

“Any critics would have to say that she’s been masterful in her organization capacity,” he added.

“She must literally stay on the phone 24 hours a day, because every time I see someone, they say they just spoke to her.”

The former governor defined the state Republican Party as “an insurgency” and noted that although the

time off, think about your life and family, and PATERSON think about the areas where you contributed to your own demise.”

Paterson argued that Cuomo would have been much better off if he had said at the outset of the sexual harassment investigation that he had been wrong. Paterson, who is recent GOP convention generated a Catholic, emphasized that “contrilot of enthusiasm among dyed-in- tion ignites compassion,” adding the-wool party members, Republi- that people tend to forgive leaders cans are still handicapped by a gulf “when they fall on their own sword.”

But his successor, he said, apin voter registration compared to pears incapable of that gesture.

Democrats.

“Andrew Cuomo can’t do that.

He can never really see that he’s done anything wrong,” Paterson said. “He’s gotten away with it for a long period of time, and now we’re supposed to believe him and not 11 women and not all the people who worked in the nursing homes or the staff members who said it’s a toxic work atmosphere? Too many people are accusing him. They can’t all be wrong.”

York state.

“Sometimes there’s a problem in one of the counties and they appealed to our office and they didn’t think people were listening, and I was able to overrule that and give them the aid they needed,” he said.

“I miss that.”

Paterson then reflected on his own brief hold on power and the ephemeral nature of leadership within democratic systems.

“I think that most people who wield great power get mixed up and start to think that they have to be right all the time or they’re losing that power,” Paterson said. “My advice to people who have great power: Remember, everything is temporary.

“It’s inevitable, no matter how long you serve, that you will have spent far more of your life not serving,” he continued. “Try to remember that in that small amount of time you can make a difference.” ■

Thoughts on leadership Paterson’s own career, however, is no example of moral probity.

Even though he had planned to officially run for governor, he announced in February 2010 that he would not after a collection of ethics violations became public.

Paterson broke into a long laugh when asked if he missed being governor. No, he said, but he does miss the opportunity to have an effect on situations that come up across New

‘Absolute power corrupts’ But Paterson reserved his most unguarded comments for his successor, Cuomo.

Paterson served in the state Senate for 21 years and knew Cuomo personally and professionally. Both men come from political families— Paterson’s father served in the state Senate and as secretary of state of New York—and both men worked in New York City district attorney offices before entering politics.

When asked to assess Cuomo’s downfall, Paterson pointed to the prevalence of politics in his successor’s psychology.

“Gov. Cuomo’s aura is 95% politics. I don’t even know what he does with the other 5%,” he said. “So from the minute he wakes up, everything is political, and this is just how he was raised. He was raised in that environment, and he thinks that way.”

Cuomo held office for 10 years and controlled the state with an iron grip. Paterson noted from his own experience that Cuomo might have become insulated by holding that much influence over so many people for such a long time.

“I guess it’s just power corrupts, and [the] ‘absolute power corrupts absolutely’ syndrome,” Paterson said. “More and more, he became paranoid and suspicious of people and punished people if they said one little thing he didn’t like. He was very concerned about appearances,” Paterson added. “Always.”

Paterson acknowledged he’s surprised Cuomo has stepped back into the limelight with upstate television ads and a press campaign waged against Attorney General Letitia James. He contrasted this strategy to what he saw from Spitzer during a competitive campaign for New York City comptroller in 2013.

“Eliot Spitzer waited five years to run again,” Paterson said. “With Cuomo, it’s as if he resigned on Aug. 24 and started his comeback on Aug. 25. Sometimes, mentally, it might be suggested that you take

LIMITED-TIME

RATE PROMOTION

BRIDGE TO HOME LOANS

Whether you are a business owner, foreign national, self-employed, or retired, our Bridge to Home Loan Program is designed for borrowers with unique job and credit situations. We understand your circumstances may not check the boxes of many large lenders – which is why we take income and assets into consideration to provide you with a path to homeownership.

Program features: • No minimum credit score required • Ability to qualify based on income or assets • Applicable for owner occupied, second home or investment properties • Purchase, refinance and cash-out refinance1

Scan for program details.

Brooklyn 5801 8th Ave., Brooklyn, NY 11220 718.435.1288 1322-1328 Ave. U, Brooklyn, NY 11229 718.998.2218

For more information, visit your local branch or call 877.392.6868 and mention promo code: PREN. Flushing 135-11 Roosevelt Ave., Flushing, NY 11354 718.640.9388 38-05 Union St., Flushing, NY 11354 718.961.4966

Manhattan

208 Canal St., New York, NY 10013 212.710.2913 77 Bowery, New York, NY 10002 212.966.3303

Offer valid until 3/31/2022. Promotional rates available for Bridge to Home Loans only. Subject to qualifying minimum loan amounts. Applications must be received by 3/31/2022 with funding no later than 6/30/2022. Loan amounts up to 60% of property value. All rates, fees, products and program guidelines are subject to change or discontinuance without prior notice. Other limitations and restrictions may apply. All loans are subject to East West Bank’s application, underwriting, appraisal and credit approval. Mortgage program is available in selected counties of California, Georgia, Massachusetts, Nevada, New York, Texas and Washington.

1

Cash-out refinance is allowed only on Second Home and/or Investment Properties in the State of Texas and is not allowed on owner-occupied properties.

Equal Housing Lender

Member FDIC

NMLSR ID 469761

MARCH 14, 2022 | CRAIN’S NEW YORK BUSINESS | 13

P013_CN_20220314.indd 13

3/10/22 3:56 PM

2022

LEADERS IN ADVERTISING, MARKETING & PR Crain’s New York Business’s 2022 Notable Leaders in Advertising, Marketing and PR list recognizes top marketing, advertising and public relations leaders for their skills in delivering significant value to clients.

NOMINATE NOW! Deadline is April 1 Nominate at CrainsNewYork.com/NotableMarketing CN020662.indd 1

3/10/22 5:19 PM

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

ENGINEERING / ARCHITECTURE

FINANCIAL SERVICES

FINANCIAL SERVICES

FINANCIAL SERVICES

LEGAL

AECOM

J.P. Morgan Private Bank

J.P. Morgan Private Bank

J.P. Morgan Private Bank

Latham & Watkins LLP

AECOM announced Wahid Albert the New York Metro Surface Transportation group lead and will serve as the firm’s New York Metro structural department manager, where he will mentor engineering professionals in innovative, streamlined designbuild project delivery. He will advance regional highway and bridge projects to support strategic growth of AECOM’s national transportation and highway and bridge markets, enhancing the firm’s core talent pool and strengthening client relationships.

Timothy Batten has joined J.P. Morgan Private Bank in New York City as an Executive Director and Investment Specialist. He guides families with significant assets in making complex financial decisions, and seeks innovative approaches to invest and preserve their wealth.

During his 15-year career, Tim has built a reputation of establishing systematic efficiency in trade execution and posttrade operations. Tim joins J.P. Morgan from macro hedge fund, Citadel Global Fixed Income.

Scott Graulich has joined J.P. Morgan Private Bank in New York City as a Vice President and Lending Specialist.

He works with high-net worth individuals to help meet their borrowing needs through cost-effective and tax-efficient strategies. With more than a decade of experience in the industry, Scott has a grasp of the lending environment that allows him to help clients unlock the value of their full balance sheets.

Scott joins us from UBS where he was a Real Estate Finance Team Director.

Michael Meade has joined J.P. Morgan Private Bank in New York City as an Executive Director and Banker. He takes a white-glove approach to deliver concierge access to the strengths of J.P. Morgan like private placements, direct investments and innovative ideas. He removes obstacles and transforms challenges into accomplishments. Over a 15-year career, he spent the majority of that time at Citi Private Bank. Mike was drawn to J.P. Morgan’s culture that embodies his personal values.

Michael Anastasio has been elected a partner at Latham & Watkins in New York. A member of the Mergers & Acquisitions Practice in the Corporate Department, he advises clients in public and private M&A, leveraged buyouts, “deSPAC” merger transactions, and other corporate transactions and governance matters. He has substantial experience across a range of industries, including media and entertainment, sports, technology, energy, and hospitality.

FINANCIAL SERVICES

FINANCIAL SERVICES

FINANCIAL SERVICES

FINANCIAL SERVICES

LEGAL

Alloy

J.P. Morgan Private Bank

J.P. Morgan Private Bank

J.P. Morgan Private Bank

Latham & Watkins LLP

Gizelle Barany has joined Alloy, the leading identity decisioning platform for banks and fintech companies, as General Counsel, where she brings over 15 years of experience in financial services to lead Alloy’s legal and compliance team. Gizelle held previous positions at Blackhawk Network, Marqeta, and most recently LendUp, where she led the legal team, helped with regulatory matters and establishing them as a digital bank.

William Giordano, Jr., CFP has joined J.P. Morgan Private Bank in New York as an Executive Director and Banker. Through a planning approach, he helps his clients make informed financial moves that impact every stage of life, and puts their assets to work through risk-based asset allocation modeling to help pursue sophisticated goals.

William began his 20 year career in private equity, then later moved to wealth advisory and investment management roles at Merrill Lynch and UBS.

Korab Hasani has joined J.P. Morgan Private Bank in New York City as a Vice President and Banker.

He works closely with affluent individuals and families, founders, executives and members of the real estate community to craft strategies that navigate the complexities of significant wealth. Over a 15-year career, Korab has been recognized for his business acumen and excellent client service. He began his career at JPMorgan Chase then moved on to TD Wealth Management before rejoining J.P. Morgan.

Suzanne Sweeney has joined J.P. Morgan Private Bank in New York City as a Vice President and Banker. She serves as a trusted advisor to her clients and their families, as well as their foundations, and works to address their investment, insurance and banking needs, while liaising with their tax and legal advisors. She helps leverage the full resources of the firm, and delivers customized strategies to help protect and grow their wealth. Most recently, Suzanne joins the firm from Morgan Stanley.

Anupama Yerramalli has been elected a partner at Latham & Watkins in New York. A member of the Restructuring & Special Situations Practice in the Finance Department, she represents debtors, official and ad hoc committees, bondholders, lenders, and other creditors and investors in complex and multifaceted bankruptcies and restructurings, in and out of court. She counsels domestic and multinational corporations across industries, including healthcare, shipping, and energy.

FINANCIAL SERVICES

FINANCIAL SERVICES

LEGAL

LEGAL

J.P. Morgan Private Bank

J.P. Morgan Private Bank

Foley Hoag LLP

Latham & Watkins LLP

Christopher Gironda has joined J.P. Morgan Private Bank in New York City as a Vice President and Banker.

Chris listens closely to his clients and develops long-term plans to pursue sophisticated goals, putting assets to work in an efficient manner that reflects their risk profile and time horizon. As a member of The Law Firms Group, he works closely with clients at the top law firms in Manhattan. Chris joins J.P. Morgan from HSBC Private Bank where he was an Investment Counsellor.

James Jacobs, CFA has joined J.P. Morgan Private Bank in New York City as an Executive Director and Investment Specialist. With almost two decades of experience, James is well-equipped to make portfolio recommendations and innovative product offerings tailored to individual’s unique needs to drive growth and capital appreciation. He joined J.P. Morgan from Shay Capital for the opportunity to leverage his well-defined capabilities in a more client-facing capacity.

Amy Haberman, former chair of the Labor & Employment Law Practice at McCarter & English LLP in New York, has joined Foley Hoag LLP as a partner in the Immigration practice. She is resident in the firm’s New York office and will advise clients on the immigration consequences of mergers and acquisitions, the I-9 process, and compliance with government agency statutory and regulatory record keeping requirements.

Herman Yue has been elected a partner at Latham & Watkins in New York.

A member of the Intellectual Property Litigation Practice in the Litigation & Trial Department, he focuses on patent litigation, with a primary emphasis on the life sciences and pharmaceutical industries. He represents clients in patent infringement actions, including under the Biologics Price Competition and Innovation Act and the Hatch-Waxman Act, as well as providing strategic patent counseling.

INDUSTRY ACHIEVERS ADVANCING THEIR CAREERS Recognize them in Crain’s

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

CRAINSNEWYORK.COM/PEOPLEMOVES

MARCH 14, 2022 | CRAIN’S NEW YORK BUSINESS | 15

P015_CN_20220314.indd 15

3/9/22 1:51 PM

CRAIN’S NEW YORK BUSINESS

B R E A KFAST Join us live while we break news and network with the city’s most influential leaders and policy-makers Gregory Russ Chair & CEO CRAIN’S NEW YORK BUSINESS New York City Housing Authority Learn more about the organizational reform, preservation strategy and investments coming to the city.

B R E A KFAST

April 6 | 8-9:30 a.m.

Ritchie Torres US Representative State leaders discuss legislative agendas, New York’s economy, infrastructure investments, business initiatives, and more.

April 29 | 8-9:30 a.m.

Janno Lieber Chair & CEO MTA Find out how the MTA plans to tackle its big challenges, how it will utilize an infusion of federal dollars and what to expect from the subway of the future.

May 11 | 8-9:30 a.m.

Register Today: CrainsNewYork.com/PowerBreakfast

Sponsorship Opportunities:

Contact Crain’s New York Sales Manager courtney.mccombs@crainsnewyork.com

CN020663.indd 1

Event Questions:

Contact Crain’s New York Events crainsevents@crainsnewyork.com

3/10/22 3:06 PM

REAL ESTATE: THE CLOSER

Real estate broker confronts a growing cannabis industry that’s ripe with opportunity and risk INTERVIEW BY NATALIE SACHMECHI “The Closer” is a new biweekly column in which reporter Natalie Sachmechi speaks to city brokers about what makes them tick and their most challenging deals.

TANNOR

G

What’s your secret sauce for getting and expertise. It’s a lot harder than you think. You have to be extremeclients?

I’m a personable person who can ly creative and on your toes at all strike up a conversation with any- times and think of different methone. I believe in social integration, ods to lock up space. and that leads to success because you can always find a common What’s your favorite deal that you have thread with someone. I’ve done it worked on?

It was 860 Washington St. so many times where I in the Meatpacking Diswalk into a CEO’s office and see a picture of them trict, where I was hanplaying golf, and we can dling the ownership, which was a new developbullshit about golf for 35 ment with Romanoff Eqto 40 minutes. Being able uities. I secured Tesla’s to identify yourself as the global flagship for 11,000 owner of a cannabis dissquare feet. It was a really pensary opened up a lot fun deal. I got them to fly of opportunities. I’m one in, see the building and of the only real estate bro- SACHMECHI figured out right on the kers that is also an owner. street that I can get a curb cut to get you on the West Side Highway.

Why do your clients choose you?

No one is as good as me. It’s the What better place to put a car dealway I can speak about the canna- ership? I got it approved by the Debis industry. It’s my knowledge partment of Buildings and got the

BUCK ENNIS

reg Tannor’s relationship with the cannabis industry dates back long before he began brokering retail deals for dispensaries.

Tannor, a cannabis user himself, recently opened his own dispensary, Harmony of MA, with partners in Massachusetts. As New York got closer to legalizing recreational marijuana use, Tannor called all the contacts he had in the real estate industry to discuss opening cannabis stores in the city and throughout the state.

“A lot of the landlords were like, ‘You’re a joke,’ ” he recalled. “But I said, ‘I bet one of my kids that this will happen,’ and it did. The day after the bill passed, my phone was ringing off the hook from every landlord and broker.”

To date, he’s leased six retail spaces in the boroughs to dispensaries hoping they can get their hands on a license to sell marijuana products.

As the city prepares for the arrival of legal cannabis, and the millions of dollars in anticipated revenue, Tannor sat down with Crain's to discuss his approach to building trust with clients. deal done. We were able to drive cars in and out.

Who was your first client?

My first client in Manhattan was Jennifer Convertibles. I called the CEO for 90 days straight. He picked up the phone and said, “What do you want?” I told him he had too many stores in one location and that they could sublease their space for more money. Then I called Ricky’s and told them they should be in that market, and we did the deal in 30 days.

Why are you solely focused on cannabis right now?

My mother is a cancer survivor, and she’s been in remission for 13 or 14 years. I used to roll her joints and drop them off at her house so that she could eat and not be in pain. I also have a passion for controlling the product. Two of my cousins

died from smoking a joint laced with fentanyl in Washington, D.C. It’s a big passion project for educating consumers that if they’re going to consume cannabis, just do it in a safe way and go to a dispensary and buy it. I don’t want to see people having these adverse reactions to things that were laced.

What is the biggest challenge in cannabis retail leasing?

Since this is still federally illegal, part of our vetting process when speaking to landlords is we ask if they have debt on the building, who their lender is and whether the lender has approved an adultuse recreational dispensary. If the answer is no, we have to cease and desist and not move forward.

Landlords are skeptical about what a cannabis dispensary is, but we have to get over those hurdles and explain it.

Why are retailers signing leases without a license?

New York state requires you to have secured real estate to apply for the cannabis dispensary license—either owning or a draft or a signed lease. We’re expecting licenses to come out in the next several months. They’re not legally allowed to sell cannabis at this time. Since people want to solidify their location in Manhattan and the boroughs and out-position their competitors, they’re going into these deal structures contingent on final license approval to lock in their locations. If they don’t get their license, the deal is off. ■ Do you know a real estate broker who would work for a future edition of “The Closer”? We'd love to hear from you. Email Natalie Sachmechi at natalie.sachmechi@ CrainsNewYork.com.

REAL ESTATE

Times Square Sheraton sells at huge loss, continuing trend

T

he 1,780-room Sheraton Times Square hotel has traded hands for $356 million, nearly $400 million less than it was purchased for in 2006, property records show.

Hospitality firm MCR bought the building, which is the third-largest

ning of the pandemic.

In 2018 Host attempted to sell the property for $550 million, but its value had dropped significantly since then given the current state of the hotel market. But MCR has been taking advantage of the competitive prices, picking up two other Manhattan inns since 2020.

That year the firm purchased the Royalton Hotel from Highgate and Rockpoint Group at a steep discount. It paid $40.8 million for the building, though Highgate had bought it just three years earlier for $55 million.

MCR was also one of the investors behind a group that last year bought the Lexington Hotel for

SEVERAL LOCAL HOTELS HAVE RECENTLY FALLEN INTO DISTRESS hotel in the city, from Host Hotels & Resorts. Despite the massive discount, the transaction is the city’s largest hotel deal since the begin-

$185 million from DiamondRock Hospitality Co., a Maryland-based real estate investment trust.

Several hotels have recently fallen into distress and been picked up by their lenders or outside investors.

The AKA Wall Street was taken back by its lender, the Vanbarton Group, and converted into luxury rentals. The Andaz Wall Street, which had fallen behind on mortgage payments under the Hakimian Organization’s ownership, was purchased by Navika Capital earlier this year for $85 million.

The Excelsior Hotel sold this year to Emmut Properties for nearly $80 million and will be converted to apartments, and the Hotel at New York City was sold to Slate Property Group and converted to transitional housing for the homeless. ■

GETTY IMAGES

BY NATALIE SACHMECHI

MARCH 14, 2022 | CRAIN’S NEW YORK BUSINESS | 17

P017_CN_20220314.indd 17

3/11/22 5:05 PM

FROM PAGE 3

thousands of workers. But employment in the sector has been slow to recover. As of December, city employment in the arts, entertainment and recreation was at 73,400, or 20,000 short of its early 2020 level, according to the state Department of Labor. In the performing arts, New York City lost 72% of all jobs— the most of any industry—although it has recouped two-thirds. That could change as tourists and locals return to buying tickets, especially if cultural and performing arts institutions drop their vaccine mandates now that the city has permitted it.

(So far the Metropolitan Museum of Art is nearly alone among the city’s largest cultural organizations to remove its mandate.)

Visitors to the city spent 12% of their dollars on arts and recreation, or $5.5 billion, according to NYC & Company’s 2019 annual report.

New York state’s proposed arts budget is just slightly less than last year’s record allocation, which was nearly $100 million. It funds about $9 million for the Council on the Arts, which makes grants to about 2,500 arts organizations each year.

By contrast, the city’s proposed arts budget is larger, at $140 million.

The final budget, which will be passed during the summer, is typically much higher. In 2021 former Mayor Bill de Blasio’s final budget contained $230 million for the arts,

which was $70 million more than initially proposed.

Last year some of those dollars went directly to artists through a $25 million program called City Artists Corp that disbursed $5,000 grants to applicants who were required to have a public-facing element to the work they produced.

Those were instrumental for many out-of-work musicians who used the grants to get the “gang” together again.

In Queens, singer Carla Wesby and a neighborhood friend, also an artist, used their individual grants to stage an opera for children and a dance performance, Wesby said.

Not only did the grant pad her earnings until she landed a gig in the chorus at the Metropolitan Opera, but it created a project, the Woodside Art Collective, at which she plans to continue staging events.

Similarly, Chelsea-based experimental guitarist Reg Bloor, whose career was ramping up in 2019, was able to stage a comeback show in July with the help of a City Artists Corps grant.

“It was very cathartic and felt like New York was back,” Bloor said. Although the fall and winter waves of Covid-19 were setbacks, she said, regular gigs have been returning.

The investment was money well spent, said Anne del Castillo, commissioner of the mayor’s Office of Media and Entertainment. Her office moved swiftly to partner with the Department of Cultural Affairs and the Department of Small Busi-

ness Services to increase funding for city artists and arts and entertainment businesses.

“Moving forward, our office will continue to prioritize the recovery of NYC’s creative economy,” she said, “by supporting and identifying new funding and relief programs so that we can streamline the reopening process and get our artists back to work.”

By December there was money left over from the record-high allocation, and the city’s nonprofit arts organizations received $51.4 million in grants from the Department of Cultural Affairs.

That commitment and the city’s spending more than the state government indicate how culturally and economically valuable the arts are, said Tom Finkelpearl, a former commissioner of the Department of Cultural Affairs.

Community remains resilient Private funders also swooped in.

Creatives Rebuild New York, a year-old philanthropic organization, has committed $125 million, mostly from the Andrew W. Mellon Foundation, to help guarantee a $1,000 monthly income for 18 months for 2,400 artists living in the state who have demonstrated financial need.

A separate program will employ 300 artists who work with community-based organizations in the state at a salary of $65,000 annually.

The program follows the model of a city-run program that funneled $25

BLOOR is an experimental guitarist in Chelsea.

BUCK ENNIS

FUNDING

million to 3,000 individual artists who applied for funding for specific projects.

On a smaller scale, local organizations are still offering grant programs, often in partnership with corporations, to make sure that struggling businesses and cultural institutions can survive.

For example, a new program in Harlem has a $100,000 grant program administered by the 125th Street Business Improvement District and the Apollo Theater, which is accepting applications throughout March for a $10,000 grant. The money comes from BET, a subsidiary of Paramount Global.

“As we enter year three, it’s clear that even though we are all still dealing with the effects of Covid, the Harlem community remains re-

silient,” said Jonelle Procope, the Apollo Theater’s president and CEO. There is always room for more, arts organizations say. A group of 412 arts entities founded, led by and serving Black, Latinx, Indigenous, Asian, Pacific Islander, Middle Eastern and all people of color in February called for the mayor to put an additional $100 million into a fund for arts organizations for and created by people of color, a step toward a long-term strategy to support stability.

Finkelpearl agreed that more is more when it comes to money for the arts.

“I think it could be an order of magnitude higher,” he said. “A doubling, tripling of the budget is what would be equitable.” ■

The Green Market Report’s

WOMEN’S SUMMIT

Thursday, Apr. 28 | 9 a.m. - 4 p.m.

New York City

Manhattan Manor | 201 W. 52nd St. An all-day business conference focusing on women in the cannabis industry.

Speakers include some of the most successful women in the cannabis industry.

GMR’s first Female Leadership Awards to be announced at the conference.

Sponsor inquires welcome.

REGISTER TODAY CRAINSNEWYORK.COM/GREENREPORTSUMMIT 18 | CRAIN’S NEW YORK BUSINESS | MARCH 14, 2022

P018_CN_20220314.indd 18

3/11/22 5:22 PM

FINANCE

SCIENCE

Feds say a city venture capital adviser was a Russian agent

FROM PAGE 1

towers. When the development is fully done, it is expected to feature 1.3 million square feet of office and laboratory space.

Despite the windfall of investments from public and private funders alike, a brewing storm of tax laws and market softness is threatening to stymie the city’s meteoric rise in the industry this year, spelling a muted outlook instead.

“It’s quite apparent the life science industry and equity markets are going through a new bout of volatility,” said Matthew Price, executive vice president and chief operating officer of Phosplatin, a Midtown-based biotech firm focused on oncology therapeutics.

BY AARON ELSTEIN

A MEHRA, director of BioLabs

high, investors rushed toward the life sciences.

“That pendulum has swung back, and now investors are seeking safer opportunities,” Price said.

The stock market softness has resulted in investors being more conservative and conducting more due diligence with smaller companies.

Mehra said some startups at BioLabs have seen deal conversations, especially around valuation, taking longer to close.

As access to capital is squeezed, some of those startups have had to hold off hiring researchers or growing the business development team, Mehra said. Being unable to scale these key roles can slow a company’s progress.

The lackluster market is holding back new startups from joining the incubator, with start dates being delayed, she said. “We only started having these types of conversations this year.”

“A RISING TIDE LIFTS EVERYONE. A FALLING TIDE BRINGS EVERYONE DOWN” tential buyer. In a market such as New York, where being acquired represents an attractive strategy for development capital for early stage companies, the stakes are high.

“Previously a buyer might see a firm with expenses that can be deducted, with credits available down the road, as an attractive attribute,” said Christine Kachinsky, U.S. life sciences tax industry leader at KPMG. “If these deductions now have to be taken over a longer period of time, firms could be less attractive to an acquirer.”

The city and state have provided tax credits through their respective life science initiatives, shielding especially young biotech firms so they can focus on the science, said Glennis Mehra, director of BioLabs.

For example, companies at the incubator are exempt from the payroll tax as long as employees are onsite, and the companies face no sales tax at city and state levels.

Uncertainty abounds The Nasdaq composite exceeded 16,000 points in November, and it has since leveled off, hitting around 13,000 this month. Similarly, the Dow Jones Industrial Average exceeded 36,000 points in November, and it now sits around 33,000.

When markets were at an all-time

Navigating stumbling blocks Despite financial challenges, New York firms have an advantage in being in a city where many institutional investors and incubators are available to provide advice, said Robert Barrow, CEO of MindMed, a World Trade Center–based biotech firm focused on developing psychedelics as therapeutics.

“It’s a matter of raising money when it’s appropriate,” Barrow said. “[The] rule of thumb in biotech is knowing how and when to raise, and there’s plenty of expertise for the industry here.” He added that fundraisers held last year were helping MindMed in these trying times to focus on generating data.

Raising funds when market conditions are flush helps life science firms maintain expansion plans even during lean times, said Price of Phosplatin, which raised $37 million in a Series A funding round in November.

“Our board members had been conscientious about the volatility that would eventually hit. The current market thus has not affected

our development plans,” he said, adding that the company looks to expand its corporate space by 50% this year.

Despite this year’s rocky start, local players say New York’s life science scene can weather the storm.

That the city and the state invested billions of dollars in nurturing the industry has helped shield local life science firms from some of the current hurdles. As a result, though biotech firms might remain a little cautious, most should be able to push forward with their developments without having to tighten their purse strings.

Although supply-chain kinks remain, most of the smaller consumables, such as pipettes, which were scarce last year, are now available at regular rates, Mehra said, adding that some larger, capital-intensive equipment is still elusive.

For MindMed, access to resources needed for animal-model toxicology studies have resulted in planning lead time increasing to 18 months instead of the usual three.

“We see that ultimately as a good thing,” Barrow said. “It has helped solidify our plans earlier.”

Of the billion dollars invested, $450 million had been earmarked to fund research, $430 million to build lab and incubator space, and at least $20 million to foster life science talent locally. In 2018 the state pledged $620 million for its Life Science Initiative, with $320 million for grants and project funding, $100 million for research and development tax credits, and $100 million for job-creation tax credits.

The liquidity earmarked from previous administrations remains available, but during these contentious times, the new mayor and governor can help by ensuring the same, if not higher, levels of funding, Mehra said.

Achieving small victories, from enacting favorable zoning to training programs for talent, this year will ultimately guide the city’s life science industry through future challenges, Mehra said.

“A rising tide lifts everyone,” she said, “but a falling tide brings everyone down.” ■

Hockey game Branson, 61, is a native of the Soviet Union and a dual Russian and American citizen. In addition to starting the Russian Center New York, she led the Russian government– funded Russian Community Council of the USA, which coordinated an “I Love Russia” campaign aimed at American youth.

She also cultivated contacts with New York leaders.

According to the criminal complaint, in 2015 a Russian official contacted Branson about arranging “a friendly hockey match between the Moscow Interior Ministry and New York police!” Branson replied that she had reached out to the New York police commissioner, and an unidentified New York state senator was willing to meet the Moscow delegation.

A few weeks later, in an email with the subject line “New York,” she said the delegation would have dinner with the state senator at an Upper West Side location, according to the criminal complaint. It’s not clear if the dinner took place.

In the spring of 2016, a Russian minister asked Branson to arrange a meeting with Donald Trump and an unidentified daughter, the criminal complaint said, and Branson sent a draft invitation to the former chair of the Russian Community Council inviting Trump and his children to a forum.

“There is no indication that the now-former president or his children attended the referenced meeting,” FBI Special Agent Neil Somers said in the criminal complaint. ■

BLOOMBERG

Ramifications of the 2017 Tax Cuts and Jobs Act, which reduced corporate tax rates, kicked in Jan. 1, proving a thorn in the side of the life science industry.

Part of the law’s budget-neutral balances requires companies to now amortize research-and-development expenses in the U.S. over five years, instead of as a one-off write-off. This could increase companies’ cash tax liability in the near term, affecting liquidity on hand for future research and development.

Although this tax change affects all industries, it has an acute impact on life science firms, especially precommercial ones, where R&D expenses can make up more than 90% of their income statements. It could also tarnish the attractiveness of an emerging biopharma firm for a po-

BUCK ENNIS

Wrench in the plan

former adviser to a New York venture capital firm has been accused of being a Russian agent who arranged a meeting for Russian officials with a New York state senator.

Elena Branson is alleged to have corresponded directly with Vladimir Putin and a high-level Russian minister before launching the Russian Center New York from her BRANSON Manhattan home in 2012, federal prosecutors said in a criminal complaint filed last Tuesday.

She was paid $173,000 from Russian government-controlled entities for her work, authorities said, and charged with failing to register as a foreign agent, lying to the FBI and conspiracy to commit visa fraud.

Branson sat on the advisory board of Manhattan Venture Partners, a firm that says it has invested in Airbnb and Lyft, among others.

“Elena advises MVP in procuring interests, equity and shares in emerging technology companies, as well as in identifying and attracting investors, strategic partners and other advisory board candidates,” her LinkedIn profile says.

An MVP spokesman said Branson joined as an “informal adviser” in 2015 and had not been affiliated with the firm since 2016.

“She had limited interaction with the firm and no interaction with our clients or portfolio companies,” the spokesman said. “Her LinkedIn is inaccurate in both scope and tenure.”

Branson left the United States this past October after being questioned by investigators and remains at large. It’s not clear if she has an attorney.

“Particularly given current global events, the need to detect and hin-

der attempts at foreign influence is of critical importance,” U.S. Attorney Damian Williams said in a statement. “The Southern District of New York is proud to do its part in the fight against tyranny.”

MARCH 14, 2022 | CRAIN’S NEW YORK BUSINESS | 19

P019_CN_20220314.indd 19

3/11/22 4:47 PM

CLASSIFIEDS

Advertising Section

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

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 #047C– Epoxy Flooring (Bid, Payment & Performance Bond Required) BP #047A – Resinous Matrix Terrazzo Flooring (Bid, Payment & Performance Bond Required) BP #047B – Rubber Flooring (Bid, Payment & Performance Bond Required) BP #050 – Specialties (Partitions, FEC & Extinguisher) (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: April 11th, 2022 and initial submission of a prequalification statement not later than April 11th, 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 #047C, #047A, #047B and #050 A Webcast about the above Bid Package/s will be held on March 11, 2022. 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_YWVhMTM0ZTktYTliZC00ZDkyLThiYjQtMTkwMWE4ZWIyZmFj%40thread.v2/0?context=%7b%22Tid%22%3 a%2220e27700-b670-4553-a27c-d8e2583b3289%22%2c%22Oid%22%3a%22732a90ce-24b7-42eb-bf78-d638e2a629ac%22%7d

To obtain further information about contracting opportunities and/or the prequalification package and bid solicitation package/s, please contact Lyndsey Spangel, lspangel@tcco.com 646-842-1659.

The date for the virtual public opening at the Turner Construction Company office located at 375 Hudson Street, New York, New York, is April 12th, 2022 10 AM Link: Please join this opening meeting from your computer, tablet or smartphone.

https://teams.microsoft.com/l/meetupjoin/19%3ameeting_YWVhMGQ2ZjctNDk0OC00MDcwLWJlOTctNzJhNGU4OTczYTdk%40thread.v2/0?context=%7b %22Tid%22%3a%2220e27700-b670-4553-a27c-d8e2583b3289%22%2c%22Oid%22%3a%22732a90ce-24b7-42ebbf78-d638e2a629ac%22%7d

POSITIONS AVAILABLE Quantitative Researcher (Citadel Securities Americas Services LLC – New York, NY) Mult. Pos. avail.

Formulate mathematical & simulation models of complex mrkt problems, relating constants & variables, restrictions, alternatives, conflicting objectives, & their numerical parameters using technology, mathematical & statistical model’g, & computer systems. F/T. Reqs a Ph.D. (or foreign equiv) in Stat, Math, Physics, Comp Sci, Eng, or a rel quant field. In lieu of a Ph.D. (or foreign equiv) in stated field, will accept a Bach degree (or foreign equiv) in stated field plus 5 yrs of quant research exp, or a Master’s degree (or foreign equiv) in stated field plus 3 yrs of quant research exp.

Edu, train’g, or exp must incl the follow’g: utiliz’g time-series or crosssectional analysis; solv’g complex data intensive problems utiliz’g adv mathematical & statistical model’g techniques incl Robust Regression, Statistical Machine Learning, Natural Language Processing, or similar; C++ or OOD programm’g; high-level interpreted languages incl R, Matlab, Python, or similar; & analyz’g gigabyte or terabyte sized large datasets. Resumes: citadelrecruitment@citadel.com.

JobID: 6109470.

POSITIONS AVAILABLE Software Engineer (Citadel Americas Services LLC – New York, NY) Mult. pos. avail. Design, develop, test and deploy next generation software solutions for research, trading & business operations activities across the firm. F/T. Reqs a Bach degree (or foreign equiv) in Comp Sci, Engineer’g, or a rel field. Edu, train’g, or exp must incl the follow’g: end-toend software dev; object-oriented programm’g & design; C, C++, Python, C#, or JavaScript; data structures & algorithms; & Distributed Comput’g, Natural Language Process’g, Machine Learn’g, Platform Dev, Network’g, Systems Design, or Web Dev techniques. Resumes: citadelrecruitment@citadel.com.

JobID: 6109575.

Software Engineer (Citadel Enterprise Americas Services LLC – New York, NY) Mult. Pos. avail. Design, develop, test & deploy next gen software solutions for various business operations activities across the firm.

F/T. Reqs a Bach degree (or foreign equiv) in Comp Sci, Engineer’g, or a rel field. Edu, train’g, or exp must incl the follow’g: end-to-end software dev; object-oriented programm’g & design; C, C++, Python, C#, or JavaScript; data structures & algorithms; & Distributed Comput’g, Natural Language Process’g, Machine Learn’g, Platform Dev, Network’g, Systems Design, or Web Dev techniques. Resumes: citadelrecruitment@citadel.com.

JobID: 6109555.

Quantitative Developer (Citadel Americas Services LLC – New York, NY); Mult pos avail. Collab with res teams to dsgn & implement quant tools & strat for trad’g innovations across asset classes. F/T. Reqs a Bach degree (or foreign equiv) in CS, Stat, Engin, Math, Physics, or rel quant field. Edu, train, or exp must include the follow’g: work’g in sftwre dev; stat model’g techniques includ’g time-series analysis, Stat Machine Learn’g, Natural Language Process’g, pattern recognition, or sim; data collection, cleans’g, & process’g; big data analytics; programm’g with C, C++, Java, Python, SQL, R, or Kdb+/q; object-oriented analysis & design; & data structures, algorithms, & comp arch paradigms. Resumes: citadelrecruitment@citadel.com.

JobID: 6109374.

Quantitative Developer (Citadel Securities Americas Services LLC – New York, NY); Mult pos avail. Dvlp & deploy internal apps & software solut for quant res platforms. F/T. Reqs a Bach degree (or foreign equiv) in CS, Engin, or rel field. Edu, train, or exp must include the follow’g: C++ programming on a Unix platform; multithreaded app programm’g & network programm’g; script’g languages includ’g Python, Perl, Unix, Linux shell script’g, or sim; analytical packages includ’g R, Matlab, or similar; Unix Inter-Process Communication (IPC) mechanisms includ’g sockets & semaphores; data structures, algorithms, & computer architecture; &, Machine Learning techniques. Resumes: citadelrecruitment@citadel.com.

JobID: 6109350.

PUBLIC & LEGAL NOTICES Formation of EAST 89 NYC LLC filed with the Secy. of State of NY (SSNY) on 1/26/2022. Office loc.: NY County. SSNY designated as agent of LLC upon whom process against it may be served. The address SSNY shall mail process to Christopher Shaari, 19 Country Club Way, Demarest, NJ 07627.

Purpose: Any lawful activity.

Analyst (Citadel Americas Services LLC – New York, NY); Multi. Pos. Avail. Analyze fin. statements & bis. strategies, build detailed fin. models & conduct comp. due diligence & channel checks. F/T. Reqs a Master’s degree (or foreign equiv.) in Fin, Acct’ng, Econ, Stats, Tech, Fin. Eng., or rel quant field. Edu, train, or exp must include the following: Conducting equity valuations, corporate financial statement analysis and linear regression calculations on behalf of a global financial services institution; Financial modeling using MS Excel and VBA to project industry growth and forward company earnings; Obtaining and analyzing data from Bloomberg or similar third party source; Working as a long/short hedge fund analyst; and Presenting investment recommendations to clients or portfolio managers.

Resumes: citadelrecruitment@citadel.com.

JobID: 6109136.

Quantitative Research Analyst (Citadel Americas Services LLC – New York, NY); Mult. pos. avail.

Analyze & solve complex market probs through the use of tech, math and stat model’g, & comp systems.

F/T. Reqs a Bach degree (or foreign equiv) in Stat, CS, Engin, Math, Physics, Ops Res, or a rel quant field.

Edu, train, or exp must include the follow’g: conduct’g data-intensive investment-rel res & analysis; adv math & stat model’g includ’g timeseries analysis, cross-sectional analysis, Statistical Machine Learning, Natural Language Processing, pattern recognition, or sim; & performing computations & res with programm’g languages includ’g Python, R, C++, Matlab, Julia, or similar. Resumes: citadelrecruitment@citadel.com.

JobID: 6109449.

Quantitative Research Analyst (Citadel Securities Americas Services LLC – New York, NY); Mult pos avail.

Analyze & solve complex market probs through the use of tech, math and stat model’g, & comp systems.

F/T. Reqs a Bach degree (or foreign equiv) in Stat, CS, Engin, Math, Physics, Ops Res, or a rel quant field.

Edu, train, or exp must include the follow’g: conduct’g data-intensive investment-rel res & analysis; adv math & stat model’g includ’g timeseries analysis, cross-sectional analysis, Statistical Machine Learning, Natural Language Processing, pattern recognition, or sim; & performing computations & res with programm’g languages includ’g Python, R, C++, Matlab, Julia, or similar. Resumes: citadelrecruitment@citadel.com.

JobID: 6109390.

Trader (Citadel Securities Americas Services LLC – New York, NY) Mult. pos. avail. Monitor and analyze incoming market information, economic news & trad’g activity to manage portfolio risk, identify investment opportunities & make trad’g decisions. F/T. Reqs a Bach degree (or foreign equiv) in Finan, Econ, Math, Eng, CompSci, Phys, or a rel quant field. Edu, train’g, or exp must incl the follow’g: work’g in a data-driven quant trad’g envirnmnt; financial & statistical modell’g incl time-series analysis; work’g in financial mrkts with derivative pricing; programm’g & script’g languages includ’g Python, R, C++, or similar; stat tools incl R, Matlab, or similar; & analyz’g large data sets & other informational input to inform investment or trad’g decisions.

Resumes: citadelrecruitment@citadel.com.

JobID: 6109697.

SUBMIT YOUR BUSINESS CLASSIFIEDS TODAY Get your message in front of New York’s influential business community with Crain’s New York Business - Classified Ads Advertising Section

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

20 | CRAIN’S NEW YORK BUSINESS | MARCH 21, 2022

P020_P021_CN_20220314.indd 20

3/10/22 6:13 PM

h i

d

r

POSITIONS AVAILABLE Quantitative Researcher (Citadel Americas Services LLC – New York, NY) Mult. Pos. avail. Formulate mathematical & simulation models of complex mrkt problems, relating constants & variables, restrictions, alternatives, conflicting objectives, & their numerical parameters using technology, mathematical & statistical model’g, & computer systems. F/T. Reqs a Ph.D. (or foreign equiv) in Stat, Math, Physics, Comp Sci, Eng, Finan, or a rel quant field. In lieu of a Ph.D. (or foreign equiv) in stated field, will accept a Bach degree (or foreign equiv) in stated field plus 5 yrs of quant research exp, or a Master’s degree (or foreign equiv) in stated field plus 3 yrs of quant research exp.

Edu, train’g, or exp must incl the follow’g: apply’g adv statistical & mathematical model’g techniques including time-series analysis, crosssectional analysis, Statistical Machine Learning, Natural Language Process’g, or similar; C++ or OOD programm’g; statistical packages incl R, Matlab, PyTorch, or similar; script’g languages incl bash, PERL, Python, or similar; & analyz’g gigabyte or terabyte sized large datasets.

Resumes: citadelrecruitment@citadel.com.

JobID: 6109496.

Software Engineer (Citadel Securities Americas Services LLC – New York, NY) Mult. pos. avail. Design & build software components that are foundational to research & trad’g activities. F/T. Reqs a Bach degree (or foreign equiv) in Comp Sci, Engineer’g, or a rel field. Edu, train’g, or exp must incl the follow’g: objectoriented programm’g & design; endto-end software dev; C, C++, C#, Java, Python, or Perl; statistical analysis; R, Matlab, SAS, or S-Plus; data structures, algorithms, & computer architecture; & Machine Learn’g techniques. Resumes: citadelrecruitment@citadel.com.

JobID: 6109669.

PUBLIC & LEGAL NOTICES Notice of Qualification of FINCHLEY ROAD MEDIA LLC. Appl. for Auth. filed with Secy. of State of NY (SSNY) on 02/24/22.

Office location: NY County. LLC formed in Delaware (DE) on 08/30/21. Princ. office of LLC: 740 4th St. North, Ste. 176, St. Petersburg, FL 33701. 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 6.9542 in 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.

PUBLIC & LEGAL NOTICES NOTICE OF FORMATION OF Eugene Business Consulting, LLC. Articles of Organization filed with the Secretary of State of NY (SSNY) on 09/27/2021. Office location: NEW YORK County.

SSNY has been designated as agent upon whom process against it may be served. The Post Office address to which the SSNY shall mail a copy of any process against the LLC served upon him/her is: 8711 92nd Street, Woodhaven NY 11421. The principal business address of the LLC is: 8711 92nd Street, Woodhaven NY 11421.

Purpose: any lawful act or activity.

Raymond Realty Group LLC, Arts of Org filed with SSNY on 07/17/18. 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, 17 Catherine St, Unit 13, New York, NY 10038. Purpose: to engage in any lawful act.

LEGAL NOTICE Application for Authority of Torchia Entertainment, LLC filed with the Secy. of State of NY (SSNY) 2/3/2022. Formed in PA 1/1/2022. Office loc.: NY County. SSNY is designated as agent of LLC upon whom process against it may be served. The principal business loc. and address SSNY shall mail copy of process is c/o Michael J. Torchia, 610 White Ash Dr., Langhorne, PA 19047.

Cert. of Organization filed with the Secy. of the Commonwealth of PA, 401 North St., 206 N. Office Bldg., Harrisburg, PA 17120. Purpose: Any lawful activity.

Application for Authority of ABL RPC RESIDENTIAL CREDIT ACQUISITION LLC filed with the Secy. of State of NY (SSNY) on 2/1/2022. Formed in DE on 7/22/2020. Office loc.: NY County.

SSNY is designated as agent of LLC upon whom process against it may be served. The address SSNY shall mail copy of process to 30 Montgomery St., Ste. 215, Jersey City, NJ 07302. The office address required to be maintained in DE is The Corporation Trust Company, Corporation Trust Ctr., 1209 Orange St., Wilmington, DE 19801. Cert. of formation filed with the Secy. of State, 401 Federal St., #4, Dover, DE 19901. Purpose: Any lawful activity.

NOTICE OF FORMATION of 30W 85TH STREET LLC. Arts of Org filed with Secy. of State of NY (SSNY) on 11/17/2021. Office location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to Registered Agents Inc., 90 State St, Ste 700, Office 40, Albany, NY 12207. Purpose: any lawful act or activity.

NOTICE IS HEREBY given that a license #1343094 for beer, cider and wine has been applied for by the undersigned to sell beer, cider and wine at retail in a restaurant under the Alcoholic Beverage Control Law at 53 Bayard Street, New York, NY 10013 for on premises consumption. Zhou’s Group, Inc. d/b/a Yunshang Rice Noodle House.

Notice of Qualification of GB EquipmentCo LLC. Appl. for Auth. filed with Secy. of State of NY (SSNY) on 02/17/22. Office location: NY County. LLC formed in Delaware (DE) on 10/02/19.

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. DE addr. of LLC: 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, 820 N. French St., 4th Fl., Wilmington, DE 19801.

Purpose: Any lawful activity.

Notice of Formation of CAESAR, NAPOLI & SPIVAK PLLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 02/09/22. Office location: NY County. Princ. office of PLLC: 233 Broadway, Ste. 2348, NY, NY 10279. SSNY designated as agent of PLLC upon whom process against it may be served. SSNY shall mail process to the PLLC at the addr. of its princ. office. Purpose: Practice of law.

Notice is hereby given that a license, number 1341506, for beer, wine and liquor has been applied for by the undersigned to sell beer, wine and liquor at retail in a restaurant establishment under the Alcoholic Beverage Control Law at 7 Times Square, Suite Nos. G003 and 200, New York, NY 10036 for on-premises consumption.

PT OPCO, LLC d/b/a Pink Taco

CRAIN’S NEW YORK

Tap into New York.

Crain’s is now in the app store.

MARCH 21, 2022 | CRAIN’S NEW YORK BUSINESS | 21

P020_CN_20220314.indd 21

3/10/22 2:00 PM

openings last month. Software developers, IT managers and data analysts are especially in demand.

placed a record $55 billion into local startups in 2021—money those startups must put to work by hiring employees to scale up.

Despite recent high-profile layoffs at Better.com and Peloton, experts say the hiring market remains especially tight.

“The best candidates are extremely hard to find, hard to lock in and hard to keep,” said Amanda Cantor, director of talent at Manhattan-based venture investment firm Lerer Hippeau. “You’ve got people who are perfectly happy leaving their jobs at times because they are getting offers for 20% more than they are making.”

In February there were 20,000 tech-related job postings from New

Money talks

FROM PAGE 1

Hiring and retaining workers is the “thing keeping most founders up at night,” said Steve Melia, a talent partner at Boston-based tech investment firm OpenView. The company recently surveyed about 100 software companies and found that around two-thirds expect to hire more employees this year than in 2021.

With a large group of companies fighting for a small pool of candidates, pay is going up. About 85% of companies surveyed by OpenView say salary expectations are increasing.

Average pay in the tech industry climbed 7% last year, to $105,000, according to jobs website Dice. Salaries averaged $115,000 in New York.

Part of the challenge for companies looking to hire, Capchase’s Fernandez noted, is that a New York worker can be hired by a company in California or Europe and vice versa.

“The whole world is out for talent,” he said. “It is no longer about the 20 miles around your HQ.”

“THE BEST CANDIDATES ARE EXTREMELY HARD TO FIND AND HARD TO KEEP” York employers, up about 30% year over year, according to data tracked

by CompTIA, an industry group for information technology professionals. As workers are starting to return to offices around the country, local tech firms are being forced to compete in a national job market—which had a record 400,000

Hybrid work’s a must Tech workers are often using their power in the labor market to

BLOOMBERG

WORKERS

earn more flexibility about where and when they work.

“Clients that expect you to show up to the office 100% of the time are absolutely going to have trouble attracting talent,” said Ashish Kaushal, founder of HireTalent, a recruiting firm that works with both large firms and startups.

Workplace culture matters especially to a younger generation of workers, Kaushal said, and that is something that tech company leaders are still working to translate into a remote or hybrid workplace.

Almost half of the 22,000 workers surveyed late last year by the company Joblist said they would quit their job if required to work from the office full time. Roughly two-

thirds of job-seekers want to work remotely at least part of the time, the survey found. Tech employers are recognizing this reality by taking a hybrid approach. Google, for instance, is requiring workers to return to its office starting April 4 for three days each week.

Millennial and Gen Z employees are often negotiating for career development and training opportunities as part of the interview process, Lerer Hippeau’s Cantor said. She has seen companies offer a week of paid vacation before an employee starts a job, she said.

Warning sign?

Layoffs in tech have been rare since the surge seen at the begin-

ning of the pandemic. But two New York companies, Peloton and Better.com, have each cut thousands of jobs in recent weeks. They blamed changes in the market for home exercise and online mortgages, respectively, for the cuts.

Both of those companies are much larger than the typical tech firm. But it remains to be seen whether those layoffs are an outlier or a warning sign for the market. Some in the venture capital industry predict investment in startups will slow because of the turmoil in the public stock exchanges, which offer an eventual return on investment. Others are worried the slowdown of investment and returns could stem the hiring spree.

But that does not appear to be happening. Cantor is helping with recruitment efforts for dozens of companies in the portfolio of Lerer Hippeau, which is an investor in Fi, Glossier and Bowery Farming, among others. These days the firm’s online job board regularly climbs above 5,000 positions compared to a peak of around 2,500 openings pre-Covid.

“I’ve never seen anything like it,” Cantor said. “In 2020 you had the furloughs and layoffs, and now companies are scaling fast and have to figure out ways to attract talent.” ■

Reserve your spot in Crain’s Spring 2022 Meeting and Event Planners Guide Planning for in-person events has resumed and Crain’s Spring 2022 Meeting and Event Planners Guide is the place to be! Showcase your venue as businesses are planning for their meetings, conferences and special events and are looking for the best options in Crain’s.

Email marc.rebucci@crainsnewyork.com for rates and availability.

COMMITMENT DEADLINE: APR. 18 PUBLISH DATE: MAY 16

22 | CRAIN’S NEW YORK BUSINESS | MARCH 14, 2022

P022_CN_20220314.indd 22

3/11/22 4:41 PM

BUCK ENNIS

SMALL- BUSINESS SPOTLIGHT

NEAR SPACE LABS’ balloon device can take photos from the stratosphere, Matevosyan says.

FOCAL POINTS

Boldly going where no balloon has gone before Near Space Labs raises $14.5 million toward its mission to make views of Earth more affordable

BY RYAN DEFFENBAUGH

C

ommercial satellite imaging is a billion-dollar industry, with large companies regularly capturing detailed images of Earth from above.

Near Space Labs, a growing startup based in the Brooklyn Navy Yard, says it has found a cheaper, more precise way to capture such imagery—minus the satellite. The company uses a robot attached to a custom-designed weather balloon that can take photos from 65,000 feet up in the stratosphere, just short of reaching the final frontier.

The company calls its device a Swifty. The five-year-old startup said its technology can make satellite-quality imaging more easily available for disaster relief efforts, city planning and monitoring the current climate crisis, especially. The firm’s device also avoids the carbon emissions of the rocket launch necessary to place a satellite.

“You can capture much more data at much better prices using balloons,” said Rema Matevosyan, chief executive officer and co-founder of Near Space Labs.

She and co-founder Ignasi Lluch met as international doctorate students in Moscow studying aerospace systems, work that included researching satellite networks for the European Commission. That’s when the idea of using balloon-based imagery clicked into

place. The company was founded in 2017 as Swiftera and was quickly admitted to Urban-X, an accelerator for climate-tech companies based in Brooklyn. Urban-X provides a $100,000 investment and a 20-week mentorship program twice per year.

Matevosyan is based in Brooklyn, and Lluch and a third co-founder, Albert Caubet, are in Spain, where Near Space has a research office. The company has 30 employees total between the two offices, with some working remotely.

One corporate partner is California-based Upstream Tech, which provides natural resource management software to environmental groups. Near Space’s technology “gives our customers precise insights into the landscapes they care about—from assessing damage after a storm to consistently tracking changes in a protected forest,” said CEO Marshall Moutenot.

Insurers are among Near Space’s clients, using the imagery to track damages caused by storms. The firm can launch its balloons on a contract basis, though most clients pay to subscribe to its imagery.

“We don’t sell hardware,” Matevosyan said.

“We are a data company.”

Space tech boom Technology startup founders are increasingly looking toward the stars. Venture capi-

tal investors bet $17 billion last year alone on 328 startups focused on space tech, according to a report from investment firm Space Capital. Near Space has much larger, publicly traded Earth-imaging competitors, such as Planet and Maxar, which utilize satellites.

Using its advanced version of a weather balloon, Near Space can reach about 65,000 feet above sea level—well beyond a drone’s flying range. Custom software guides the Swifty to its target.

In one flight, the Swifty can capture the full breadth of the five boroughs, according to Near Space. The balloon is reusable after each launch.

Last fall the company closed a $13 million Series A funding round from investors including Toyota Ventures.

The new investment should help move the firm toward what Matevosyan described as its mission to democratize access to high-quality, timely data about the planet.

“Apart from the few that have a space presence, countries like the one I am coming from and dozens of others don’t get to use this imagery,” said Matevosyan, who is from Armenia.

The Swifty has logged more than 750 flight hours to date and is closing in on a million images. Last month Near Space launched a higher-quality 10-centimeter resolution, allowing increased clarity from its original 30

FOUNDED 2017 MANAGEMENT Rema Matevosyan, co-founder and CEO; Ignasi Lluch, co-founder and chief technology officer; Albert Caubet, co-founder and chief engineer FULL-TIME EMPLOYEES 30 FUNDING Near Space Labs has raised $14.5 million from venture capital investors.

CLIENT MIX Nonprofits and corporations, such as insurance companies, pay for the high-quality images and data that Near Space Labs captures from its zero-emission weather balloon.

AVIAN AMBITIONS Near Space’s balloon device is called a Swifty. The name is a reference to the common swift, a bird that can fly without landing for up to 10 months.

WEBSITE nearspacelabs.com centimeters. It views its technology as especially important to understanding how the Earth’s climate is shifting and more about potential risks, such as sea level rise and the danger zones for wildfires.

The firm’s focus now is building out its line of products and expanding to cover as much of the U.S. as possible, with plans for global expansion as well.

“Part of the solution to the climate crisis is good data,” Matevosyan said. “You have to be able to understand the planet to make better decisions.” ■ MARCH 14, 2022 | CRAIN’S NEW YORK BUSINESS | 23

P023_CN_20220314.indd 23

3/11/22 4:45 PM

UPCOMING EVENTS

CRAIN’S NEW YORK BUSINESS

B R E A KFAST Breaking news live on stage with the city’s most powerful people.

CRAIN’S NEW YORK BUSINESS

Gregory Russ, Chair & CEO B R E A KFAST NYCHA April 6

Ritchie Torres US Representative April 29

Janno Lieber, Chair & CEO MTA May 11

REGISTER NOW: crainsnewyork.com/PowerBreakfast

Commercial Real Estate Networking Event

The Race to Build Affordable Housing April 27: Panel discussion on New York’s 421-a program.

Brad Lander, Comptroller NYC

Ron Moelis, Chair & Co-founder Brenda Rosen, President & CEO Breaking Ground L+M Development Partners

REGISTER NOW: crainsnewyork.com/AffordableHousing

May 5: Crain's Forum talks in-person on health equity and how all New Yorkers can get the care they need.

Additional speakers will be announced soon.

Dr. Kam Doobay, Organizer NYC Coalition to Dismantle Racism in the Health System

REGISTER NOW: crainsnewyork.com/MayForum

CN020666.indd 1

3/10/22 3:19 PM