Crain's New York Business

ASKED & ANSWERED DFS chief on hiring the right talent for crypto enforcement PAGE 15

CHASING GIANTS An exercise startup for older adults PAGE 3

CRAINSNEWYORK.COM

|

MAY 2, 2022

POLITICS

Adams’ vision for city finally clears up

SHAFER performing a Botox injection on a patient

Mayor pumps money into public safety, housing, jobs, streets

BY RYAN DEFFENBAUGH

L

eading a city staring down what he called a “time of profound concern,” Mayor Eric Adams offered a $99.7 billion budget plan aimed at boosting jobs and public safety.

“It all comes down to this: safety, jobs, schools and housing,” Adams said during an April 26 speech at Kings Theatre in Brooklyn, where he outlined spending priorities and recapped his first 100 days in office.

The spending proposal marks PLEDGED by the the first mayor to spend post-pandemic over 10 years budget for the for affordable city that will not housing have the help of billions of dollars in federal stimulus aid.

BEDS FOR Adams said the HOMELESS, proposed budwith specialized get would services, by year’s achieve savings end of about $400 million in the next two fiscal years and would add $200 million to the city’s rainy-day fund, bringing reserves to $6.3 billion.

The new proposal tacked on about $1.2 billion from the mayor’s preliminary $98.5 billion budget proposal in February. The City Council, which must approve the spending plan before it takes effect

SETTING AGENDAS

$5B

4,000

HEALTH CARE

BUCK ENNIS

A Botox boom for back-to-work New Yorkers beckoned back to the office are flocking to cosmetic surgery

A

fter more than two years of perpetual videoconferencing, New Yorkers beckoned back to the office are coming faceto-face with … faces.

Some are bracing for the impact.

Cosmetic work has skyrocketed across the country as laptops have been transformed into digital double-sided mirrors and workers spend an inordinate amount of time looking at themselves. Facial filtering technology, which revamps features into smoother versions, have mushroomed beyond apps such as TikTok and Snapchat to Zoom. And now users are accustomed to a pristine rendering of themselves.

BY AMANDA GLODOWSKI

NEWSPAPER

VOL. 38, NO. 17

P001_CN_20220502.indd 1

© 2022 CRAIN COMMUNICATIONS INC.

See BOTOX on page 19

See BUDGET on page 22

GOTHAM GIGS

THE CLOSER

DOORMAN OPENS UP ABOUT HIS CHANGING ROLE PAGE 23

Broker feasts on food and beverage deals PAGE 11

4/29/22 4:26 PM

TRANSPORTATION

T

he Metropolitan Transportation Authority has formed a new panel to look into solutions that will curb fare evasion across New York’s subways, buses and commuter rails, MTA Chairman and CEO Janno Lieber announced at an event last Tuesday hosted by the Association for a Better New York.

Riders evading fares on trains and buses, along with drivers dodging tolls on MTA bridges, are estimated to cost the agency $500 million this year, Lieber said. That is cash the transit agency needs with ridership still well below prepandemic levels. In March fare revenue was $170 million below budget due to the dip in commuters.

That $500 million fare deficit still accounts only for just shy of 3% of

“That’s why I am convening a panel of distinguished New Yorkers to take a deep dive into the issue. The goal is to hit the reset button on how we approach fare evasion at the MTA and across government.”

The poverty advocacy group Community Service Society of New York, however, has charged the MTA with pushing a false narrative on fare evasion and are skeptical of the survey data the agency uses to support its claims, emphasizing that the data it relies on was never meant to be taken as a reliable estimate of revenue loss. (Transit officials appointed Community Service Society President and CEO David Jones to the panel, along with 12 other initial inductees.)

New approaches Members of the new “Fareness” panel will develop approaches to combat fare evasion with a focus on three areas: education, equity and enforcement, Lieber said. The group will also be looking at the design of subway fare gates, which can easily be jumped over.

The panel is expected to put out a report with recommendations by the summer.

In addition, the panel will partner with the city’s five district attorneys’ offices “to seek a uniform

TRANSIT OFFICIALS SAY THE PANDEMIC HAS EXACERBATED THE ISSUE the MTA’s annual budget, but Lieber insisted that fare evasion is “a threat to the spirit” of New York.

“What hardworking, fare-paying New Yorkers tell us, in a word, is that seeing fare evasion makes them feel like suckers,” Lieber said.

HEALTH EQUITY EVENT

THURSDAY, MAY 5 CRAIN’S FORUM ON HEALTH EQUITY How can New Yorkers get the care they need? Join us for a breakfast to discuss this topic and more with stakeholders representing hospitals and community health clinics, public policy experts and advocates.

NEW YORK ATHLETIC CLUB

take advantage of it.

Similarly, panelists will recommend fresh enforcement solutions, such as possibly expanding the use of civil penalties or ramping up the role of MTA civilian staff in ensuring riders pay their fares.

‘Significant challenge’ Transit officials have griped about fare evasion for years, but they say the pandemic has exacerbated the issue. The MTA said only 3.4% of subway riders dodged the fare in 2018. From June through September 2021, the agency estimated 14% of subway riders beat

the fare, and 12% avoided fees in the last three months of the year.

MTA officials said that number on subways remains persistently high at 12%, and on buses approximately 1 of every 3 riders sidestep the fare.

Fake or obscured license plates, transit officials said, have also bedeviled the agency in collecting tolls at bridges and tunnels.

“This is a really significant challenge,” Lieber said. “It is truly an all-of-the-above behavior engaged in by too many commuters across all demographics and income levels.” ■

REAL ESTATE

Brooklyn retail stores thrive in residential areas, but office and tourist districts see a slowdown

BY BETH TREFFEISEN

EVENT CALLOUT

five-borough approach to what will and won’t be charged and under what circumstances,” the MTA said.

Without new strategies to plug budget shortfalls, the Metropolitan T ra n s p o r t a t i o n Authority is heading toward a financial crisis, transit officials warned during the agency’s finance committee meeting last Monday.

“The budget shortfalls will increase and the gaps will widen if we don't see continued growth beyond where we are today,” said Mark Young, the deputy chief financial officer of management and budget at the MTA. To encourage straphangers to pay their fare, the MTA will explore creative communication campaigns. The panel also look into how the MTA can work with the city to expand access to the system for low-income New Yorkers. For instance, only 200,000 of the 800,000 New Yorkers eligible for discounted MetroCards through the Fair Fares program actually

R

esidential traffic drove retail stores’ success in Brooklyn this past winter, according to a Thursday report by the Real Estate Board of New York.

With more than 14,000 residential units completed since 2020, and nearly four times that amount proposed or in the planning process, the borough’s thriving home sector has increased demand at local stores, the report said.

Streets with steady residential traffic saw a tightening of vacancies in retail spaces, despite winter challenges from the omicron surge, supply-chain issues and staffing

shortages, the report said.

Local retailers were active in several residential neighborhoods, depleting space options on Franklin Street in Greenpoint, Court Street in Cobble Hill and some sections of Park Slope, the report said. Retailers are now taking a closer look at secondary streets such as Manhattan Avenue in Greenpoint and Smith Street in Cobble Hill for vacancies.

International luxury retailers and direct-to-consumer companies continued to focus on renting space in Williamsburg, leaving the area with little availability, the report found.

Other corridors, such as those in

180 Central Park South

CORRECTIONS

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

CrainsNewYork.com/ mayforum

■ There were two murders in Midtown South from the start of the year to April 24. From April 24, 2021, to April 24, 2022, robberies increased by 45%, burglaries by 55%, and grand larceny by 97%. The data was incorrect in “Midtown BIDs band together to advocate for crime prevention,” published April 25.

Downtown Brooklyn, are still experiencing extensive residential development, but some large retail anchor storefronts remain vacant, according to the report.

Vacancies up Office- and tourist-dependent corridors in Downtown Brooklyn, such as Montague Street, had more vacancies, the report said. However, turnover among national retail chains along these corridors, as well as on Bay Ridge’s 86th Street, has kept rental rates steady.

Of the 17 major Brooklyn retail corridors analyzed for the report, 10 saw their average asking rent per square foot grow during the winter

BLOOMBERG

BY CAROLINE SPIVACK

GETTY IMAGES

MTA exploring solutions to stop fare, toll dodgers

of 2021 and 2022, according to the REBNY report. However, the average asking rent remained below its prepandemic peak in the majority of them.

For example, the average asking rent on Fulton Street is 45% below its peak of $359 in the winter of 2018 and 2019. ■

Vol. 38, No. 17, May 2, 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 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 | May 2, 2022

P002_CN_20220502.indd 2

4/29/22 4:38 PM

CHASING GIANTS

BUCK ENNIS

BALANCED co-founders Froelich and Reed

Startup aims to keep older adults flexible, fit and strong

C

hasing Giants is a biweekly column profiling budding startups in New York City and their plans to compete with, and potentially overtake, an industry leader.

The upstart: Balanced

The reining Goliath: Peloton The New York City–based connected fitness giant has 6.6 million members who shelled out $4 billion last year for online classes ranging from the company’s hallmark indoor cycling routines to yoga, strength training, stretching and meditation sessions.

Peloton’s newly minted CEO, Barry McCarthy, is boosting the company’s menu of digital classes after an activist investor pressured former CEO John Foley to step down following months of slowed revenue.

It makes sense that Katie Reed and Kelly Froelich, the 31-year-old co-founders of Balanced, would launch an online fitness platform. The two, who met working side by side in the engineering department at health care startup Ro, are young exercise buffs. Chief Operating Officer Froelich is into boxing How to slay the giant and is a certified personal trainer. Chief Executive Officer Reed and Froelich set out to create the ideal experience for Reed enjoys running with her dog, Atilla the Hunny. their target demographic—people age 55 and up The twist—their startup is aimed at those over 55. who want to stay flexible, fit and strong but don’t Balanced, which launched in November 2021, ofcare much about big biceps or six-pack abs. fers on-demand and live-streamed online fitness In the fall of 2020, the pair self-funded a pilot proinstruction from its studio in a former warehouse gram with five senior living communities across the building in Dumbo. country, hired trainers in different time zones and The idea to start Balanced was inspired by Reed’s modified the classes based on feedback. and Froelich’s grandparents. Reed, who flew from The surprising response from seniors taking the New York to Palm Springs, California, at the start of startup’s strength, yoga and dance cardio classes: the pandemic to spend time with her grandmother They wanted better production values. The older after her grandfather died, encountered a dearth of adults demanded the same professional look and ANNE KADET inspiring online fitness options for seniors. feel offered by brands such as Peloton and others.

“My grandmother was wearing Lululemon. She’s Reed and Froelich quit their day jobs at the start 78 years old, has an Apple watch and knows how to use it. And of 2021 and raised $1.5 million, which they used to rent their there was nothing that was exciting, appetizing or even invit- Brooklyn studio and office space, recruit charismatic trainers ing for her,” Reed says. and hire a small production staff for a private beta run.

Froelich, meanwhile, resorted to giving her own grandparThe service launched publicly in November 2021. Now sevents cardio boxing lessons over FaceTime. eral hundred members across the nation are paying $20 a “They loved it—it’s always good to throw a punch,” she says. month for unlimited access to on-demand and live-streamWhile sharing experiences in a phone call, the two realized ing classes. The site’s algorithm recommends options based there was a hole in the online fitness market. on each member’s fitness goals, exercise preferences, health “We were mad. We wanted to do something about it,” Reed conditions and injuries. The most popular classes are yoga, says.

Pilates and strength training.

They launched a website that night.

Barbara-Leigh Tonelli, a 63-year-old college professor in

Huntington Beach, California, subscribed during the winter after seeing the company’s ad on Facebook.

“I’ve made incredible improvements. I’m so inspired,” she says.

Tonelli tried a dozen other options over the years, but she stuck with Balanced because she loves the trainers and the friends she’s made in before- and after-class discussions, not to mention the responsive tech support.

Brian Schechter of New York City–based Primary Venture Partners, which invested in both the initial seed round and February’s $5 million follow-up seed round, said he was impressed with the founders’ understanding of their audience.

“I’ve been fortunate to make other investments in the past where the founders had that felt sense of the problem, and it turned out really well,” he says.

Then there’s the market opportunity: There are 54 million seniors in the U.S. “and another 10,000 turning 65 every day,” Schechter says.

Balanced plans to grow this year by expanding its training staff, production team and class schedule.

The added challenge The company is advertising online to acquire customers.

While the co-founders want to maintain a direct-to-consumer component, this can be a slow, costly growth strategy. To reach millions of members, they hope to offer their platform through Medicare Advantage plans, which offer free fitness benefits to their combined pool of 26 million members. Balanced is in discussions with several insurance providers.

“Payers are keenly aware that exercise is effective, and the more they can do to support those they insure to exercise— that’s true preventative care and extremely inexpensive compared to other solutions,” Schechter says.

The trick will be figuring out how to promote the platform to this new audience.

“Do we give away swag? Host community events?” Reed asks. “That’s going to be a huge learning in the next year.” ■ MAY 2, 2022 | CRAIN’S NEW YORK BUSINESS | 3

P003_CN_20220502.indd 3

4/29/22 4:09 PM

WHO OWNS THE BLOCK

Good timing benefits a Battery Park City luxury tower in its rental-to-co-op conversion

20 RIVER TERRACE

About 100 of the 160 vacant units at the Solaire are in contract

BY C. J. HUGHES 20 RIVER TERRACE This 2003 rental building, the Solaire, is being converted into a co-op by its owner, the Albanese Organization, a Long Island–based developer active in the neighborhood. Buyers can opt for an unrenovated unit or pay extra for a fit-out by Albanese. For No. 5B, a vacant one-bedroom unit, for example, that would mean or the difference between $756,800 and $860,000. Meanwhile, No. 5C, an occupied unit, was offered to its tenant for the early mover price of $697,000—or $774,000 if the tenant buys down the road. In Manhattan, the average price for new-development condos was $3.4 million in the first quarter, according to figures from the brokerage Douglas Elliman. The Solaire, widely considered the country’s first green apartment building, is studded with solar panels that allowed it to use 35% less energy than its peers when it opened.

212 WARREN ST. Shadowing the conversion of the Solaire, some community officials expressed concern about the conversion of this next-door tower, which displaced hundreds of tenants as it went from a 324-unit rental to a much smaller, 166-unit luxury condo called River & Warren. Centurion Real Estate Partners and Five Mile Capital Partners, the project’s developer, bought the 27-story tower from Rockrose Development for $255 million in a 2013 deal, records show.

In April a three-bedroom for sale for $3.4 million was the cheapest unit there, and it was in contract, according to figures from StreetEasy.

200 WEST ST.

211 NORTH END AVE. Whether the marketing upsides of going green outweigh the extra construction costs is sort of a moot point in Battery Park City, where new buildings have been required to be eco-friendly since 2000. This 24-story, 253-unit brick-and-glass rental, the Verdesian, features wall paints free of toxic fumes, toilets that use rain water and carpets made of recyclables. It’s an Albanese creation from 2006.

For its green touches, the Verdesian was awarded platinum status—the highest-level award—under the Leadership in Energy and Environmental Design program, a green-construction referee. The median price of its apartments, which range from studios to three-bedroom units, is $5,625 a month, based on current listings. In downtown Manhattan, the median rent, by comparison, was $4,295 a month in March, according to figures from Douglas Elliman.

200 NORTH END AVE. This 32-story, 280-unit rental tower from Milstein Properties claimed the last empty lot in Battery Park City when it opened in 2012. Its next-door neighbor, 300 North End Ave., a 22-story, 191-unit rental also from Milstein, opened in 2011. Both were originally conceived as condos, but unrealistic pricing forced Milstein to program the towers as rentals instead, according to news reports. The neighborhood, which was thought up in 1968 as a way to revive a declining shipping area even if it took more than four decades to come to fruition, is controlled by a handful of private developers. Milstein has four other local towers, all of which contain a mix of condo and rental units: Liberty House (377 Rector Place), Liberty Terrace (380 Rector), Liberty (200 Rector) and Liberty View (99 Battery Place).

Battery Park City, envisioned as a Wall Street–adjacent office district before corporations began migrating to the suburbs, still has business tenants. Among them is investment bank Goldman Sachs, which in 2009 completed a move across the Financial District into a new 45-story tower here. Getting Goldman to commit to the site came at a cost to taxpayers, years before a similar promise of public incentives would help kill the arrival of Amazon in Queens. After Goldman suggested it might relocate from near Ground Zero to Midtown, officials kicked in $150 million in tax breaks for keeping jobs downtown and $1.6 billion in Liberty Bonds, which were authorized by Congress in 2002 to help rebuild Lower Manhattan. The cost to develop the building was about $2 billion.

111 MURRAY ST. Landlords in Battery Park City don’t own their land; it’s leased. Those ground rents on the 92-acre site, which has about 16,000 residents, contribute to revenues of $343.2 million, on expenses of $276.6 million, according to 2022 budget projections from the authority that controls the neighborhood. But developers have challenged their rents, which contribute to higher common charges for condos. Ground rents also create some instability: They can be increased, and leases aren’t always renewed. This condo, just outside the neighborhood, had a one-bedroom unit for sale this month with common charges of $1,073 a month, while the charges at a one-bedroom unit at the Visionaire, a condo in Battery Park, were $1,239. But Battery Park sellers often discount sales prices in response. No. 111 was asking $2.2 million; the Visionaire was asking $1.2 million. The average price for existing condos in Manhattan was $2.8 million in the first quarter, according to Douglas Elliman’s figures.

EVAN JOSEPH, GOOGLE MAPS

O

ne of the last projects to turn a rent-regulated building into for-sale luxury homes, before new tenant-friendly laws cracked down on the practice, appears to have benefited from timing.

About 100 of the 160 vacant apartments at 20 River Terrace in Battery Park City, a 290-unit rental tower called the Solaire, have gone into contract since sales began in the fall of 2021, said the Albanese Organization, its developer. Albanese attributes the strong sales to rental-heavy Battery Park’s having few places to buy. The new laws, which prohibit conversions unless a majority of existing tenants agree to buy an apartment, make it unlikely that anything will be converted in the neighborhood soon.

“It’s just a really high bar,” said Aaron Goed, the agent handling sales at the Solaire. “It will be very tough to replicate what we’re doing in the future.”

In 2018 Albanese filed plans to make the Solaire a condo building. In 2019 state lawmakers enacted the sweeping Housing Stability and Tenant Protection Act. That was an attempt to protect tenants from displacement, but it also changed the conversion rules.

No longer can developers reinvent buildings merely by selling 15% of the units in advance. Now, under the most common plans, they a much heftier 51% share beforehand—and not just to anybody. The buyers must be existing tenants. Where the Solaire once had to sell 44 apartments to move forward, it must sell 148 under the new system. (Some residents can stay put as renters.)

The state attorney general’s office took three years, an unusually long time for such a matter, to green-light the new Solaire. After a great deal of back-and-forth, the offering plan changed from one that created condos to one that offered co-ops. The state attorney general’s office did not respond for this story.

Co-ops, which have stronger boards than condos, offer tenants a bit more protection, brokers say. In addition, because of the unusual real estate of Battery Park City—landlords lease their land from the state—a “deconversion” could be triggered if Albanese ever defaults on its rent, giving the co-op renewed protections.

It’s unclear if the 2019 law stifled conversions. There were 22 New York condo and co-op conversions in the works in the year before the law was enacted but just five in the year afterward, found a report from the Steven L. Newman Real Estate Institute at Baruch College.

But some of those “after” months overlapped with the pandemic. The conversion trend seems a shell of its former self anyway. In 1986, the clear peak, 564 conversions were made, the report said. Still, “it seems logical that the market would be down,” Goed said.

“These projects have a hard time being profitable if they have to appeal to 51%.”■ 4 | CRAIN’S NEW YORK BUSINESS | May 2, 2022

P004_CN_20220502.indd 4

4/29/22 3:19 PM

Making a difference one card at a time Bank of America will become the first U.S.-based bank to transition all of our credit and debit plastic cards to at least 80% recycled plastic beginning in 2023 — an innovation that we expect will reduce single-use plastic by more than 235 tons per year. Not bad for a card that weighs only 0.18 ounces.

So, with recycled plastic in your wallet and a digital wallet on your phone, you’re joining a movement to protect our planet.

“We’re working alongside our clients and partners here in New York City to help shape the low-carbon, clean energy future we all want. As our clients reduce greenhouse gas emissions, we offer innovative ideas, our talented team and financing to help them meet their net-zero goals.”

José Tavarez President, Bank of America New York City

What would you like the power to do?® Learn more at bankofamerica.com/metroNY

Visa and Visa Signature are registered trademarks of Visa International Service Association, and are used by the issuer pursuant to license from Visa U.S.A., Inc. Bank of America, N.A. Member FDIC. Equal Credit Opportunity Lender © 2022 Bank of America Corporation. All rights reserved.

CN020729.indd 1

4/26/22 3:01 PM

POLITICS

BY RYAN DEFFENBAUGH

D

on’t expect to see salary ranges in all job postings just yet.

Weeks before a new city law was to require pay disclosure in job ads, the City Council on Thursday approved a bill to delay the law’s start date to Nov. 1, while also giving businesses a reprieve from fines if they are first-time offenders under the law.

The bill amends a law the council

goal while giving businesses time to prepare.

Middle ground The approval follows a series of twists and turns for the legislation.

A month after the first bill was approved, a new council cohort took office in January, and some had second thoughts—especially as business groups warned the legislation could tighten an already challenging hiring market.

Queens Councilwoman Nantasha Williams and Brooklyn Councilman Justin Brannan in March proposed a series of amendments to the bill that included the delay and carving out positions that are remote, along with those at companies with fewer than 15 employees.

Those proposed changes prompted significant pushback from pay equity advocacy groups, who warned that the proposals would water down the legislation.

The bill the council approved Thursday tries to strike a middle ground between the concerns of

“IT IS IMPERATIVE THAT EMPLOYEES AND EMPLOYERS FEEL THEY ARE FULLY HEARD” first approved in December, which would have made it illegal starting May 15 for businesses with four or more employees to post job ads without a “good faith” salary range.

The effort was cheered by advocacy groups as a crucial step in closing pay gaps across gender and race.

Lawmakers on Thursday said the new law offers a compromise that will help the original legislation’s

businesses and advocacy groups. Businesses get a delay and less strict penalties, and the socalled carve-outs to the amended legislation have been limited or removed.

“It is imperative to me that both New York City employees and employers feel they are fully heard,” said Williams, who chairs the committee. “The feedback we received has been incorporated into the [bill] we are voting on today.”

Under the newly approved bill, the salary transparency law will: ● Apply to businesses with four or more employees. ● Include hourly jobs. ● Cover most remote jobs if the employee is in New York City. ● Give firms 30 days to address a violation before a fine is levied. ● Require a salary range on general hiring notices, even if not specific to one position.

GETTY IMAGES

Council opts to push pay transparency to November

● Limit the ability to sue a business over alleged infractions to current employees.

The process and final bill represented a more constructive relationship between city lawmakers and employers, said Kathryn ­Wylde, president and CEO of the Partnership for New York City, a business group that initially opposed the legislation.

“We trust that this establishes a

precedent for future collaboration between the council and employers that will accelerate recovery of the jobs and businesses that were lost during the pandemic,” Wylde said in a statement.

Mayor Eric Adams opted to let the original version of the bill become law without his signature in January. His office did not immediately respond to a request for comment on his plan for the new bill. ■

Celebrate the Champions of Diversity & Inclusion.

LUNCHEON & LIVE UNVEILING OF THE 2022 D&I AWARD WINNERS

THURSDAY, JUNE 16 | 12-2 PM MANHATTAN MANOR Crain’s Annual Excellence in Diversity and Inclusion Awards toasts New York City individuals and businesses that are leading by example and holding themselves and others accountable for diversity and inclusion initiatives.

RESERVE YOUR SPOT

crainsnewyork.com/2022D&I

6 | CRAIN’S NEW YORK BUSINESS | May 2, 2022

P006_CN_20220502.indd 6

4/29/22 5:44 PM

IN THE MARKETS

After strike, Etsy reveals $40M CEO retention deal The company’s sellers were displeased by higher fees

ETSY SHARES HAVE LOST HALF THEIR VALUE IN THE PAST THREE MONTHS

share last Tuesday, its lowest since May 2020.

An Etsy spokeswoman said Silverman’s pay package was “tightly aligned with driving growth and delivering value for our sellers and our community.”

SILVERMAN

Stock-price rebound Making more money from its community is one way Etsy hopes to get its stock price back up.

Earlier this year the company raised the commission charged to its merchants to 6.5% of an item’s sale price, up from 5%. Analysts expect most additional revenue from the higher “take rate” will be invested in marketing and product development, rather than lifting the firm’s earn-

BLOOMBERG

F

Etsy said it had rewarded Silverour days after Etsy merchants ended their strike to man because he hadn’t been grantprotest the company ed any shares since he joined when charging them higher seller the company was struggling in fees, the Dumbo-based 2017. marketplace disclosed its “Silverman did not rechief executive was ceive any long-term inawarded more than $40 centive compensation million in compensation opportunities in the form in 2021, or 20 times more of equity awards in 2018, than the prior year.

2019 or 2020,” the compaMost of CEO Josh Silny said in an April 22 regulatory filing, italics inverman’s raise came in cluded. the form of equity grants Silverman’s pay packawarded in March 2021, AARON ELSTEIN when Etsy’s fortunes age consists of $35 milwere surging. But those lion worth of shares that pandemic-driven gains look un- mostly vest over a three-year perisustainable, and Etsy shares have od and are contingent on reaching certain performance targets.

He was also granted about $4 million worth of stock options at an exercise price of $223.23 per share, lost half their value in the past which means they’ll be worthless three months amid a broad decline until Etsy’s share price more than doubles. The stock traded at $98 a in tech stocks.

ings.

Even so, a group of disenchanted Etsy merchants organized a strike that lasted from April 11 to 18 and gained widespread media attention. Nearly 30,000 sellers, or 0.5% of Etsy’s 5.3 million total, signed a petition demanding the take-rate

increase be rolled back. Etsy ignored the uprising, organizers said, and sellers have gone back to work.

“Most of us were working during the strike too,” the labor group acknowledged, adding it is looking to form a “solidarity organization” for merchants. ■

ON POLITICS

Andrew Cuomo’s comeback effort takes gall

A

ndrew Cuomo refuses to even as most other politicians shun a man credibly accused of harassgo away.

The disgraced former ing and assaulting multiple women governor has flooded the who worked for him. In time Cuoairwaves with television ads at- mo aims to raise his poll numbers tempting to save his reputation. He and find a new opening. If not this has made multiple appearances at year, he may try in the future. He city churches, hinting at another has little else going for him.

The Cuomo comeback is galling run for office. Most recently he penned an op-ed in the Daily News on several levels. Of course, it’s disthat took veiled shots at turbing that a serial bully his successor, Gov. Kathy and harasser who narrowHochul. ly avoided being imOne route to rehabilitapeached believes he deserves a place in public tion has been closed off, life. Even if his conduct at least. After a tiring round of public deliberadidn’t rise to the level of criminality, it was abuntion, Cuomo decided against petitioning to run dantly clear he terrorized as a Democrat for govermany women around nor, ruling out a primary ROSS BARKAN him.

Beyond his disqualifychallenge to Hochul. He still has time to run as an ing conduct, Cuomo was a independent in the general elec- deeply flawed executive who pretion, a move that could split Demo- sided over dysfunction and corrupcratic votes and hand the gover- tion in Albany. During the pandemnor’s mansion to a Republican for ic, he intentionally hid the death the first time in two decades. Such a count in nursing homes. New York bid is unlikely—it would amount to state’s overall response was poor, political suicide—but nothing can despite the praise heaped on him. be ruled out with Cuomo.

In the earliest days of Covid’s More probable is Cuomo’s con- spread, Cuomo downplayed the tinued stabs at becoming a respect- threat of the virus and was slow to able figure in New York politics close down the city and the state.

The Daily News op-ed was a useagain. Eric Adams, the New York mayor, happily dines with him, ful window into Cuomo’s blinkered

psyche. It was disingenuous and misleading, calling out problems that his own administration caused.

“Unfortunately, at the worst moment, Albany dysfunction is back with a vengeance. Spouses, mega-­ donors and even old roommates have direct financial interests that benefit elected officials,” Cuomo wrote. “Pay-to-play donor connections and conflicts of interest are glaring.”

Cuomo, without naming Hochul, chided her for the indictment and resignation of her lieutenant governor, Brian Benjamin. The irony here is rich: Cuomo’s closest aide and confidant, Joe Percoco, was sent to prison for taking bribes. Alain Kaloyeros, the founding president of SUNY Polytechnic Institute, was convicted of rigging the bid for more than $850 million in contracts tied to Cuomo’s Buffalo Billion initiative. Cuomo was very lucky that federal prosecutors couldn’t tie him directly to either conviction.

And it wasn’t just Percoco and Kaloyeros. Scandal clouds hung over the Cuomo administration for the 11 years he was in power. He faced down a federal investigation for his role in shuttering an anti-­ corruption commission he helped create. He pursued no serious good-government reforms in Alba-

ny. He is suing the state ethics commission after it ruled he must return the $5.1 million he reCUOMO ceived for a pandemic memoir because he is alleged to have used state personnel and resources to write it.

This kind of governance made New York a national embarrassment, and it’s a reason why so few—even former Cuomo allies—are eager for his comeback. His old donors are now top givers to Hochul, who has raised more than $20 million for rent-stabilized apartments as high her re-election. The state’s business as 9%. ● It’s good that Hochul has comcommunity doesn’t need Cuomo because Hochul shares his politics. mitted to debating her Democratic They will get what they need from primary opponents, Jumaane Wilher. Cuomo is a man without a fu- liams and Tom Suozzi, at least ture, and he deserves political twice. For New Yorkers, it will be oblivion. He earned all of it. revealing to see candidates representing multiple factions of the Quick takes Democratic Party as they hash out ● It’s hard to see how Adams is a their views on television. ■ champion for the working class when he’s willing to accept the Rent Ross Barkan is an author and Guidelines Board’s raising rent on journalist in New York.

AP PHOTO/SETH WENIG

Beyond his disqualifying conduct as a harasser, he was a deeply flawed executive

May 2, 2022 | CRAIN’S NEW YORK BUSINESS | 7

P007_CN_20220502.indd 7

4/29/22 2:53 PM

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

EDITORIAL

publisher/executive editor

Adams’ affordable housing pledge is welcome but not enough of a good thing addition, the amount Adams laid out last week is much less than the $4 billion per year he promised when he was on the campaign trail.

New York is a hotbed for industry and innovation, with burgeoning tech and life sciences sectors, as well as finance, offering relatively good-paying jobs. The city is also home to medical workers, media professionals, teachers, black-car drivers, restaurant staffers, among others, who make slightly to a good deal less. All such workers, across income levels, deserve a decent, affordable place to live as they keep the city moving and thriving.

That’s not to mention that the city’s population is rising. As Crain’s previously reported, the city grew by about 630,000 from 2010 to 2020, according to data from the U.S. Census Bureau. But the number of housing units in the five boroughs increased by only 206,000 during that same period, according to figures from the Department of City Planning.

A report commissioned by the

ALL WORKERS ACROSS INCOME LEVELS DESERVE AN AFFORDABLE PLACE TO LIVE boroughs, the amount gave some residents, lawmakers and advocates pause.

Housing advocates had called for $1.5 billion to be spent annually on such efforts. In

EDITORIAL editor-in-chief Cory Schouten,

cory.schouten@crainsnewyork.com managing editor Telisha Bryan assistant managing editor Anne Michaud data editor Amanda Glodowski digital editor Taylor Nakagawa audience engagement editor 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, Caroline Spivack 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 BUCK ENNIS

D

uring his State of the City address last week, Mayor Eric Adams pledged $5 billion over the next 10 years to support the city’s efforts to create more affordable housing. The proposed funding would be split between the Department of Housing Preservation and Development, which is in charge of maintaining the city’s stock of affordable housing, and the New York City Housing Authority, the provider of public housing.

Though most New Yorkers would agree that the influx of money would be welcome because truly affordable housing is in short supply around the five

Frederick P. Gabriel Jr.

Real Estate Board of New York earlier this year found that the city would need to build 560,000 housing units by 2030 to keep pace with anticipated population and job growth, but there are just 79,500 housing units in the pipeline.

Clearly a serious solution is necessary, and the city should look to budget as much money as

possible to help stem the housing crisis. New Yorkers deserve clean, safe housing in locations central to schools, jobs and amenities.

Part of rebounding from the pandemic means helping the residents who want to live and work here stay here. And having the government ensure that they have affordable options is a crucial element in doing so. ■

www.crainsnewyork.com/advertise sales manager Courtney McCombs 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

OP-ED

Ana Jimenez, ajimenez@crainsnewyork.com

Don’t hamstring the cryptocurrency industry with mining moratoriums

senior manager of events Michelle Cast,

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

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

BY SAMIR TABAR

M

anhattan and New York state are the centers of American finance. But it hasn’t always been that way. Philadelphia, with the country’s first established banks and stock exchange, once was the center.

This changed as New York’s geographical advantages gave it an edge. More important, in contrast to risk-averse Philadelphia, New York developed a reputation for innovative business enterprise.

But today that adventurous spirit is under attack. Modern commerce is powered by innovations such as blockchain-based technologies and bitcoin. Unfortunately, these ideas are vulnerable to being quashed before they get a fighting chance to propel the Empire State toward its next iteration of financial prominence.

Two New York state Senate standing committees—environmental conservation, energy and telecommunications, and internet

and technology—recently conducted a legislative roundtable regarding the environmental impacts of crypto mining and its long-term role in the statewide economy. The main takeaway was an overriding theme to demand that mining evolve in a manner that contributes to society.

At Bit Digital, a bitcoin mining investment firm, we support such a premise and are committed to sustainability.

Sustainable operation One of our company’s key investments is in a facility in Niagara Falls, New York, where we helped fund the rehabilitation of a former fossil-fuel plant into a sustainable operation with our partners at Blockfusion. The facility’s energy comes nearly 100% from carbon-free hydropower sources, with Blockfusion participating in demand-side curtailment programs, which can help with grid reliability on volatile summer days.

Crypto mining operations do not need to run continuously and can be critical load-balancing partners to the grid because they can be turned off without damage.

Load balancing will become increasingly important as more intermittent renewables—such as wind and solar—come online as part of New York’s decarbonization plan.

Special-interest groups maintain that all bitcoin mining is dirty, inefficient and too energy intensive, but it is actually getting exponentially more efficient. Bitcoin uses far less energy than various activities that many deem worthy of power; mining uses roughly the same amount of energy as video gaming—yet yields far greater opportunities for society.

Some policymakers have suggested mining moratoriums as a quick, catch-all solution. This is shortsighted and will result in only one thing: companies flocking to friendly locales such as Texas, Kentucky and North Carolina.

New York should not let this happen. There’s too much at stake, with digital currency users expected to surpass 1 billion by 2027.

We believe policies should instead facilitate decarbonization through coordination with clean industries. If legislators want a partner to help decarbonize, they need look no further than renewable energy–focused mining investors and facilities such as Blockfusion’s in Niagara Falls.

New York state has an opportunity to limit coal-burning energy sources being brought back online to mine bitcoin. Policymakers should continue to treat natural gas as a bridge fuel that eventually needs to be transitioned away from—especially in mining.

Digital miners who have predicated their business models on a sustainable platform should be the ones who help guide future regulation. If this happens, we all win. ■

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]

Samir Tabar is chief strategy officer at Bit Digital in New York City.

8 | CRAIN’S NEW YORK BUSINESS | MAY 2, 2022

P008_CN_20220502.indd 8

4/29/22 4:16 PM

OP-ED

To get to net-zero carbon emissions by 2050, the state should switch to sustainable aviation fuel

W

e in the aviation industry recognize that air travel affects the environment and contributes to global climate change. Our industry has taken steps toward decarbonizing operations, but there is more that must be done to achieve net-zero carbon emissions by 2050, which the aviation industry views as critical to limit the impact of global warming.

With the strain on fuel prices and the release of an alarming new report by the Intergovernmental Panel on Climate Change that found we are running out of time to reduce the rise in global temperature, we must move away from traditional fossil fuels and develop more sus-

On the heels of Earth Month, we’re calling on national, state and local leaders to support the broader usage of sustainable aviation fuel.

Promising solution SAF is a well-proven sustainable jet fuel produced from renewable biomass and waste streams that can be replenished rapidly and without affecting the food supply.

Compared to traditional petroleum-based jet fuel, SAF can emit up to 80% less carbon dioxide over its lifecycle and reduce local air-quality pollutants. With more than 10 years of safe use in aircraft, SAF is recognized as the most promising solution to mitigate air-transport emissions available.

The challenge is that the SAF market has long suffered from supply and cost issues. Though the aviation industry has been flying on SAF for a decade, nearly all SAF in the United States is loaded onto aircraft in California airports because of its highly successful low-carbon fuel standard.

Such standards incentivize the use of cleaner fuels, such as SAF,

WIDESPREAD, ACTIONABLE POLICY SUPPORT WOULD BE A GAME CHANGER tainable energy sources now. The responsibility to reduce fuel emissions sits more heavily today with all of us who are leaders in the aviation industry.

through an emission trading program for fuel producers. The impact is direct and meaningful—changing the economics for the SAF producer and subsequently the airlines. To meet the industry’s broader targets and expand SAF usage to additional airports, supportive government programs will be crucial—in addition to aggressive steps by the airlines.

Seamless transition Recently the Port Authority of New York and New Jersey, which is working toward a goal of net-zero carbon emissions by 2050, commissioned an independent study to assess the feasibility of SAF delivery to its airports and to understand the potential for new production of SAF from local waste feedstocks.

The study confirmed that LaGuardia Airport and John F. Kennedy and Newark Liberty international airports are all capable of receiving SAF via the same supply chains and infrastructure that transport petroleum-based Jet-A fuel and require no changes in distribution infrastructure, allowing for a seamless transition. For JetBlue, which flies SAF out of its destination airports in Los Angeles and San Francisco, there is a clear inter-

BLOOMBERG

BY RICK COTTON AND ROBIN HAYES

est in having similar local access at its New York home.

Widespread, actionable policy support for SAF would be a game changer and immediately signal to the market that it’s time to make the transition. Producers would seek to develop new refineries, bringing green jobs and economic activity to various states, and airlines would have an immediate demand for the SAF itself. But it would take collective action by every level of govern-

ment and industry to bring all this to fruition.

If there’s one thing climate change is teaching us, it’s that our actions are always interconnected.

We all have a role to play in the critical effort to decarbonize air travel.

The time to adopt SAF is now. ■ Rick Cotton is executive director of the Port Authority of New York and New Jersey. Robin Hayes is CEO of JetBlue.

OP-ED

New York needs a more comprehensive approach to finally permanently close the digital divide

B

oth the public and private sectors have come to the long overdue realization that closing the digital divide must be a top priority, with hundreds of millions of dollars and a plethora of programs dedicated to achieving this critical goal.

The attention is welcome. But it has resulted in a siloed response that fails to holistically address all three of the underlying causes of the lack of connectivity in underserved communities—affordabili-

increasingly virtual world. But far too many New Yorkers across the state are still struggling with either unreliable internet service or no service at all.

A September report by the state comptroller’s office found more than 1 million New York households—including 1 in 3 low-income households—did not have access or a subscription to home broadband as of 2019.

Both the federal and state governments are investing in broadband equity, including $1 billion in Gov. Kathy Hochul’s ConnectALL initiative and $100 million allocated via the Infrastructure Investment and Jobs Act signed into law by President Joe Biden in November.

New York City has pledged to provide free broadband access to underserved residents of the five boroughs—including those living in public housing—although delivery on that promise has yet to be fully realized.

Now is the time to adopt smart policies to ensure that this funding is stretched to its full potential and

NOW IS THE TIME TO ADOPT SMART POLICIES THAT ENSURE CONNECTIVITY ty, infrastructure and digital literacy. Continuing down this path could not only delay closure of the digital divide but widen it.

Now more than ever, fast and reliable online access is not a “nice to have” but a “need to have”—an absolute necessity to succeed in our

provides connectivity to as many New Yorkers as possible.

High-quality access by 2027 Federal, state, local and privately funded programs offer subsidized internet access for those who cannot afford home subscriptions. But if individuals live in buildings without sufficient infrastructure to facilitate online access, these programs are useless.

The affordable housing industry is in a unique position to help bridge this gap; its residents are largely underserved when it comes to broadband. The Affordable Housing Broadband Initiative, a report released recently by the New York State Association for Affordable Housing and HR&A Advisors, provides a blueprint for wiring every affordable housing unit statewide for high-quality online access by 2027.

During the Covid crisis, the state association partnered with affordable housing developments statewide to repurpose underused common spaces for students without internet access to study and attend virtual classes.

Now the state association is

GETTY IMAGES

BY CLAYTON BANKS AND JOLIE MILSTEIN

working with Silicon Harlem, an organization focused on transforming urban areas into technology hubs, to help support its digital literacy programs. Through this pilot program, eligible residents who complete the requisite coursework will receive a free laptop to ensure they have the hardware necessary to put their newfound digital skills to work.

We know without a doubt that connectivity improves access to education, job opportunities, health care, social services and other essential services. Now is the moment

to ensure that everyone in the state—and the nation—who needs online access can get it and put it to good use.

With smart, comprehensive strategies and unique partnerships such as the one forged by the state association and Silicon Harlem, we will finally close the digital divide. ■ Clayton Banks is co-founder and CEO of Silicon Harlem. Jolie Milstein is president and CEO of the New York State Association for Affordable Housing and executive director of House New York.

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.

May 2, 2022 | CRAIN’S NEW YORK BUSINESS | 9

P009_CN_20220502.indd 9

4/28/22 3:56 PM

ONE MISSION. FIVE BOROUGHS. FEED ALL. Help us provide New Yorkers with the food they need today to build a better tomorrow.

DONATE. ADVOCATE. VOLUNTEER. FoodBank4NYC CN020731.indd 1

Visit our website

4/27/22 4:17 PM

REAL ESTATE: THE CLOSER

Whole Foods and Sweetgreen broker shares the essential ingredients for cooking up great deals Klinger says her knack for building relationships has helped her retain longterm clients in the food and beverage space

J

acqueline Klinger has made a name for herself at The Shopping Center Group representing some of the biggest names in food, including Los Angeles–based sushi chain Sugarfish, fast-caThis is the fourth sual salad spot edition of a new Sweetgreen and Crain’s series in national superwhich reporter market company Natalie Sachmechi Whole Foods. speaks to city Klinger got her brokers about what start in the busimakes them tick. ness working on the restoration of Grand Central Terminal in the 1990s. She was on staff at a boutique leasing firm in Baltimore that was hired to bring retailers to the space.

“When I started on that project, I was working for a woman who was doing all the food, and I was her assistant,” she said. “I built a lot of relationships in that sector.”

Since then she’s been brokering deals mainly in the food and beverNATALIE age category. She has SACHMECHI closed leases for Whole Foods for two decades and loves her Sugarfish clients—she eats sushi multiple times a week.

Why do your clients choose you?

I don’t act like a broker—which is a terrible thing to say. I technically work a sales job, but I don’t like to treat my job as if I’m selling somebody something. It’s not about the deal for me. It’s about building a long-term relationship with the people behind a company.

I’ve worked with the same clients for years. I did all the deals for [paper goods company] Papyrus, and I loved working with them, but they closed all their stores recently.

When I go on a pitch and meet a prospective tenant, there has to be some kind of

KLINGER

BUCK ENNIS

What’s your secret sauce for getting clients?

A lot of tenants that I’ve gotten have called me. It must be word of mouth or through references and people that I know. I’ve been around for a while. ​​Look at the Sweetgreen locations. People say, “I want the person that did Sweetgreen.” I was at a dinner and the client was, like, “We like hanging out with you, but the reason we work with you is because you know everyone.”

We’re in sales, right? If I have someone that’s looking for space or looking to figure out New York City, they want my opinion, but they also have ideas of their own. It’s about how to direct people in a way where you’re not talking over everyone and listening to them. I don’t just talk to hear myself talk. I’m pretty reserved. I’m not super aggressive. I don’t really like people that talk too much or don’t shut up.

What’s your hail Mary move if a client is walking out the door?

If I see that something isn’t going to work out, it’s best to let it go.

Trying to make a deal work when your client’s heart isn’t in it never works out for me or my partners.

whole area was becoming more gentrified. It was an exciting time for Brooklyn, and it’s in a great spot.

I also loved working on Whole Foods in Harlem. It was the first Whole Foods we had done in Upper Manhattan, and it was a long time coming. I think that it was a deal that had a lot of impact on the neighborhood socially, and it was important for the company and for New York.

Favorite deal that you worked on?

I loved working on Whole Foods on Flatbush Avenue. It was a new building that Whole Foods was going into with Apple. It wasn’t long after Barclays Center opened, and that

How did you manage your clients’ expansion efforts during the pandemic?

Sweetgreen opened their location by Crain’s, on 44th between Lexington and Third avenues, at the end of 2020 or beginning of 2021.

chemistry. If you don’t click with that person or those people and what their objectives are, then it’s just not going to work.

“I DON’T LIKE TO TREAT MY JOB AS IF I’M SELLING SOMEBODY SOMETHING”

That was a really tricky one—that was an area in Midtown that was really strong for us, so we decided to go there for another location.

They had already signed the lease before the pandemic. Our Midtown locations were some of the highest-performing stores in the chain. We haven’t given up, but it’s been a slow roll back to normal. Don’t get me started on people not going to the office.

What was your first big client?

In the early 2000s I did the rollout for Jamba Juice. They were coming from California, and we did all their deals in New York City. They didn’t really stand the test of time with the Styrofoam cups and all the sugar. At the time the brand was really well known. When they came to New York, it was really exciting, but I don’t think that given the direction that health and wellness was going in [locally], Jamba Juice was going to make it [here]. ■ May 2, 2022 | CRAIN’S NEW YORK BUSINESS | 11

P011_CN_20220502.indd 11

4/28/22 4:05 PM

ECONOMY

BY CARA EISENPRESS

A

n increasing number of small-business operators say that broad economic trends are making it harder than ever to manage, pointing a finger at inflation and supply-chain challenges in particular.

Nine in 10 American small-firm owners surveyed by Goldman Sachs said that these broader economic issues were having a negative effect on their businesses, up slightly from 86% in January, ac-

runs a gift store in the Flatiron District. “But there are a lot of our competitors that didn’t,” he said.

The tough environment and evident business casualties have made Sebazco particularly sensitive to the economic conditions, even as he starts thinking about expanding following a two-year contraction.

The firm’s puzzles have been among the top-selling items at the Museum of Modern Art and the Guggenheim Museum since 2010, Sebazco said, but the lack of tourism meant sales plunged.

In 2018 sales of puzzles peaked at 100,000, with more than 2,500 museum retailers and small boutiques around the world.

In 2020 just 500 of Eni’s puzzles were sold. That increased to 12,000 in 2021.

In addition to rebuilding his company, Sebazco is managing a changing supply chain. Instead of shipping puzzles in bulk from Korea, he now arranges for more frequent, smaller shipments. At the

“WE SURVIVED. BUT THERE ARE A LOT OF OUR COMPETITORS THAT DIDN’T” cording to the latest survey of 1,107 small-business owners, which took place three weeks ago and was released last Monday.

“We survived,” said Tom Sebazco, CEO of Astoria’s Eni Puzzles, which sells a fiddle toy or “playable piece of art” that Sebazco designs and imports from Korea. With his wife, EunYoung Sebazco, he also

same time, the packaging, which comes from China, is taking three to five months to arrive, instead of six weeks.

He found a new channel in a store that his wife opened at 55 W. 19th St. in the summer of 2020. The store, Kinka, sells curated art, gifts and plants from a subleased space in the front of Japanese restaurant Maki Kosaka.

There, though business has been solid, the couple feels the pressure of another economic force: rising prices. Inflation in the New York region rose by 6.1% between March 2021 and March 2022, the Bureau of Labor Statistics found.

Prices for wholesale flowers and plants have gone up for each holiday, Sebazco said. For example, he said, prices In the past would rise leading up to Mother’s Day, then fall afterward.

Now, he said, after “each holi-

ISTOCK

A year of rising prices, supply-chain challenges is dimming small businesses’ hopes of recovery

day, they never settled back.”

Negative energy In addition to rising costs across the board, energy bills soared during the winter. The price index for electricity was up 19.5% over the year. Three-quarters of the companies surveyed agreed that rising energy costs were having a negative impact.

“Small businesses are sending a clear signal that the economy and the challenges they face—like inflation, workforce, supply chain and energy costs—are going from bad to worse,” said Joe Wall, national director of Goldman Sachs’ 10,000 Small Businesses Voices. He called for a federal modernization of the Small Business Administration to meet the needs of firms. ■

ATTRACT TOP TALENT:

BECOME A CERTIFIED ‘BEST’ WORKPLACE Be recognized as an employer of choice and gain invaluable employee feedback

2022 22

Apply at BestPlacesToWorkNYC.com | Deadline May 20 12 | CRAIN’S NEW YORK BUSINESS | MAY 2, 2022

P012_CN_20220502.indd 12

4/28/22 5:43 PM

PEOPLE ON THE MOVE 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

SHARE YOUR COMPANY’S JOURNEY

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

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

CRAINSNEWYORK.COM/COTM

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

ARCHITECTURE

LAW

PROFESSIONAL SERVICES

TECHNOLOGY

Dattner Architects

Vinson & Elkins LLP

West Monroe

LastPass

Shefali Sanghvi has been elevated to Director of Sustainability. In this new position, Shefali will help establish the direction of Dattner Architects’ research and lead the exploration and application of sustainability in-house by facilitating knowledge sharing amongst project teams, firm leadership, and the firm’s professional development groups. An expert on urban Passive House projects, she is dedicated to designing buildings that are socially, environmentally, and financially sustainable.

Deborah Martin Owens has joined Vinson & Elkins in New York as its Director of Diversity, Equity & Inclusion (DE&I) where she will further develop and implement firmwide DE&I initiatives, as well as serve as a strategic advisor on the retention and promotion of underrepresented lawyers.

She previously guided inclusion efforts for the legal profession as the Executive Director of the Office of Diversity & Inclusion at the New York City Bar Association.

Peter Kahn leads the New York M&A practice, where he guides complex mergers and acquisitions by blending his formidable technology acumen with strong leadership skills and industry knowledge. With deep expertise in corporate strategy, due diligence, postmerger integration, and change management, he has a track record of helping clients realize deal value throughout the entire transaction process. Peter joined West Monroe in 2019.

Karim Toubba has been appointed as CEO of LastPass, the global leader in zeroknowledge password management. The cloud security veteran will lead LastPass as it separates from GoTo, formerly LogMeIn, and increases investment to create a more seamless user experience and build out industry leading password and identity management solutions for the company’s customers. Toubba brings over 25 years of executive management in technology from companies such as Juniper Networks and Kenna Security.

FINANCIAL SERVICES

FINANCIAL SERVICES

FINANCIAL SERVICES

FINANCIAL SERVICES

J.P. Morgan Private Bank

J.P. Morgan Private Bank

J.P. Morgan Private Bank

J.P. Morgan Private Bank

Tracy Child has joined J.P. Morgan Private Bank as a Managing Director and Wealth Advisor in New York City. She partners closely with private equity partners and other sophisticated clients to navigate the complexity that comes with structuring and transferring institutional-scaled wealth.

She is highly regarded for her extensive background in multigenerational wealth preservation and tax law. Tracy joins us from Sherman Atlas Sylvester & Stamelman where she was a law firm partner and attorney.

Chi-Yu Liang has joined J.P. Morgan Private Bank in New York City as a Managing Director and Wealth Advisor.

She works closely with some of the firm’s most significant clients, and helps them pursue the tax and estate planning goals that are most meaningful to them. She is highly skilled in opening up the breadth of opportunities derived from strategic wealth planning, as well as a trained attorney.

Previously, she was at Goldman Sachs serving as a Managing Director.

Kevin Ng has joined J.P. Morgan Private Bank in New York City as a Managing Director and Investment Specialist.

Kevin serves the sophisticated needs of endowments, foundations and large family offices. Kevin brings a global perspective and a subject matter knowledge of capital markets to navigate all aspects of portfolio management over a long time horizon and in a risk-managed way. Most recently, Kevin joins the firm from Goldman Sachs.

James Rudolph has joined J.P. Morgan Private Bank in New York City as a Managing Director and Banker. He works with some of the most prominent clients in the area, including multi-generational families and successful business owners. James acts as a powerful advocate for his clients, simplifying critical challenges necessitated by complex balance sheets and institutional scaled assets. Most recently, James joins us from Citi Private Bank and is a former practicing attorney.

FINANCIAL SERVICES

FINANCIAL SERVICES

FINANCIAL SERVICES

FINANCIAL SERVICES

J.P. Morgan Private Bank

J.P. Morgan Private Bank

J.P. Morgan Private Bank

J.P. Morgan Private Bank

Ravilochan Pola has joined J.P. Morgan Private Bank as an Executive Director and Banker in New York City. Ravi works closely with affluent individuals, families, and institutional clients to help them create a lasting legacy. With over 25 years of experience in Capital Markets and as an influential member in the Asian American community, Ravi leverages his robust network to help them engage and ideate in complementary ways. Ravi joins us from Oppenheimer & Co. Private Wealth Advisory Group.

Christian Sorensen has joined J.P. Morgan Private Bank as an Executive Director and Lending Specialist in New York City. He advises private equity founders, fund partners and other strategic clients of the firm on the sophisticated needs of significant wealth. He draws from his background in the strategic use of asset-backed lending structures to enhance overall wealth plans. Christian joins us from Sumitomo Mitsui Banking Corporation, one of Japan’s leading multinational financial institutions.

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

She works closely with the highest performing individuals in the area, including hedge fund principals, private equity managers, investment bankers and venture capitalists, as a member of the Financial Institutions Group. She offers a white glove approach to deliver on her clients’ highly sophisticated needs. Christina joins the firm from Citi Private Bank.

Cinzia Coppola has joined J.P. Morgan Private Bank as a Vice President and Banker in New York City. Cinzia works closely with the private equity and hedge fund communities as a member of the Financial Sponsors Group. She partners with clients to understand the future they envision for themselves and their families.

She has been awarded for her leadership in managing the complex financial decisions faced by ultra-high-net-worth clients.

Most recently, Cinzia joins the firm from Northern Trust.

MAY 2, 2022 | CRAIN’S NEW YORK BUSINESS | 13

P013_CN_20220502.indd 13

4/28/22 5:37 PM

TRANSPORTATION

Adams pledges $904M for bus and bike lanes

BY CAROLINE SPIVACK

M

ayor Eric Adams is committing $904 million in the next five years to build out hundreds of miles of bus and bike lanes.

The investment in the city’s Streets Master Plan is $2.2 billion short of the City Council’s $3.1 billion budget ask for the initiative.

Still, the funding was lauded by elected officials and transit advocates as a crucial step toward addressing street safety, particularly as the city experienced its deadliest spike in traffic deaths during the

the news conference in Brooklyn from City Hall. “Too many New Yorkers have lost their lives to the traffic violence crisis, and we are seeing cities across the country struggle just like us. But this historic investment will allow New Yorkers to walk and cycle around our city without fear.”

‘Continuing conversation’ The mayor said the pledge is part of “the continuing conversation” with the City Council amid executive budget talks for fiscal 2023, hinting that there may be room to negotiate additional funds. Lawmakers have until June 30 to settle on a final budget.

The Streets Master Plan, which the City Council approved in 2019, requires the Department of Transportation to build 250 miles of protected bike lanes and 150 miles of bus lanes and create 1 million square feet of pedestrian space by the end of 2026. Council officials estimated the plan came with a $1.7 billion price tag over 10 years. But last year the DOT said that the agency lacked the funds necessary to fully carry out the plan.

first three months of this year. Traffic crashes killed 59 people in the city during that time, a 44% increase over that period last year.

Those figures made the quarter the deadliest start of any year since 2014, when the Vision Zero project began.

“This investment is a game changer,” said Adams, who biked to

ISTOCK

“TOO MANY NEW YORKERS HAVE LOST THEIR LIVES TO THE TRAFFIC VIOLENCE CRISIS”

Adams’ commitment ensures that transit officials have the resources they need to make the Streets Master Plan a reality.

“This a big, big, big day for street safety in New York City,” said City

Councilman Lincoln Restler, who represents parts of northern Brooklyn and serves on the council’s transportation and infrastructure committee. The investment, he added, “will save lives.”

Danny Harris, executive director of the nonprofit Transportation Alternatives, said the funding sent “a strong message to New Yorkers that our city’s path forward is on streets for people.” ■

CRAIN’S NEW YORK BUSINESS

B R E A KFAST Wednesday, May 11 | 8-9:30 a.m.

CRAIN’S NEW YORK

Mark your calendar to hear from Janno Lieber, Chair and CEO of the MTA, interviewed live on stage by Crain’s New York Business Editor-in-Chief Cory Schouten. Find out how the agency plans to tackle its big challenges, how it will utilize an infusion of BUSINESS federal dollars, and what to expect from the subway of the future. Our Crain’s Power Breakfasts put you in the room as we break news, live on stage.

B R E A KFAST Be where news happens. Register Today!

CrainsNewYork.com/PB_Lieber Event Questions:

crainsevents@crainsnewyork.com

Janno Lieber

Chair and CEO, MTA

Gold Sponsor

Register Here

14 | CRAIN’S NEW YORK BUSINESS | MAY 2, 2022

P014_CN_20220502.indd 14

4/28/22 5:45 PM

ASKED & ANSWERED Department of Financial Services INTERVIEW BY RYAN DEFFENBAUGH

N

ew York’s Department of Financial Services is a watchdog for banks and insurers with total assets in the trillions. Adrienne Harris took over as its acting superintendent in August and was confirmed to the role in January. Her title makes her one of the top cryptocurrency watchdogs in the nation. She also oversees the polarizing BitLicense that for seven years has been required for cryptocurrency firms to operate exchanges in New York. As lawmakers in Albany debate crypto issues—such as whether to ban some forms of mining—Harris has pledged to improve the way her department handles BitLicense applications.

What are DFS’ priorities over the next six months?

You’ll certainly be hearing more from us on the virtual currency front—from blockchain analytics to stablecoins [cryptocurrencies pegged to another asset, such as the dollar]. We’re working on the banking climate guidance, so we hope to have that out too.

You’ve said improving oversight of virtual currency is a priority. How are you addressing that?

We’ve already brought on a dozen staff just this year.

The demand for the BitLicense and limited purpose trust charters just continues to grow. We’re making sure

WHO SHE IS Superintendent of the state Department of Financial Services GREW UP Albuquerque, New Mexico RESIDES Lower Manhattan EDUCATION Bachelor’s in government and Spanish, Georgetown University; juris doctor, Columbia Law School; MBA, NYU Stern School of Business

DFS is not the only entity looking for crypto talent.

How can you compete with the private sector?

It is definitely a war for talent. That’s a good thing. But I think it is the mission that really attracts people. Serve the public and get a unique perspective on the space.

One of your first actions as superintendent was to launch a climate change division. Why is that an important issue for a financial regulator?

WASHINGTON TO ALBANY Harris is a former financial services regulatory lawyer who also was a top economic adviser to the Obama administration and chief counsel to a title insurance fintech company.

“I’ve seen the industry from all angles.”

You want to know the institutions you regulate are thinking about risk management, especially because we know climate change impacts [lowand moderate-income] communities more than others. They’re more likely to be hit by the impacts of climate change and take longer to recover. We want to make sure that our institutions are prepared to serve those communities.

ON THE MOVE She was on the track team at Georgetown and can sometimes be spotted running near Prospect Park or the DFS office in Lower Manhattan.

that we have great expertise so that companies continue to want to be here. About 46% of investment in the crypto space was in New York– based companies last year, and we want that to be even more in the future.

What does it mean to you to be the first African American woman to lead the department?

It’s a great honor. I worked for the first Black president; now I am working for the first female governor of New York. It’s really about bringing my lived experience to the role and thinking about, for everything we do, how does it impact marginalized communities? How does it impact women and people of color? ■

New York’s rules are often called too strict. How do you plan to update the crypto licensing process?

A lot of it comes back to staffing and process. How do we make sure we

RHEA WHITNEY

ADRIENNE HARRIS

have the proper staff with the right expertise so that they can move things quickly without sacrificing the regulatory rigor that the space requires?

DOSSIER

2022

DIVERSE LEADERS IN LAW Crain’s New York Business’s 2022 Notable Diverse Leaders in Law features top law professionals from underrepresented groups who have made an impact in New York in the types of cases handled, clients won and/or pro bono work.

NOMINATE NOW! Deadline is May 20 Nominate at CrainsNewYork.com/NotableDiverseLaw

MAY 2, 2022 | CRAIN’S NEW YORK BUSINESS | 15

P015_CN_20220502.indd 15

4/28/22 5:49 PM

HOSPITALITY

BY CAROLINE SPIVACK

Under the deal, City Winery is set to rent the space for three years, starting with a $500,000 licensing fee and 8% of gross sales for the first year, followed by $750,000 and 9% of sales for the second year and increasing to $1 million and 10% of sales for the third year. The agreement comes with an option to renew for two more years, starting at $1.1 million and 10% of sales.

P

opular music venue and vintner City Winery plans to open a sprawling new location in Grand Central Terminal, according to Metropolitan Transportation Authority records reviewed by Crain’s.

The MTA’s finance committee last Monday approved a license agreement for City Winery to operate a 15,888-squarefoot venue on the western side of Vanderbilt Hall with a gastropub, a bar-restaurant and a grab-and-go retail operation.

The venue will feature live music—ensembles limited to four performers—with “cabaret seating around a small pedestal,” said David Florio, the director of real estate transactions and operations at the MTA. But the venue’s focus will be on City Winery's “farm-to-table menu [and] their unique selection of wine with ambient background music,” according to the license agreement.

THE DEAL COMES ON THE HEELS OF A CHOPPY FEW YEARS FOR THE VINTNER City Winery did not respond to multiple requests for comment or share a timeline of when it plans to open the space.

Not too loud To ensure performances don’t drown out train announcements, Florio said, MTA officials conducted two tests with musicians during the lunch hour and evening rush to en-

sure the decibel level doesn’t exceed 90—roughly the intensity of a lawnmower or power tools.

The transportation agency initially put out a request for proposals to operate multiple interconnected spaces at Grand Central, which were previously leased by the former Great Northern Food Hall, in September 2020. But because of the lack of response, the MTA instead assigned its retail consultant, CBRE, to market the west side of Vanderbilt Hall to prospective tenants for a short-term license, according to MTA records.

CBRE, the agreement says, VANDERBILT HALL in Grand Central Terminal is often used for events, such as the annual spoke with some 20 prospec- holiday fair. Soon the western side of the hall will host a City Winery location. tive retail operators before City The deal comes on the heels of a The relocation from its former Winery completed a letter of intent for the space in August. The MTA choppy past few years for the vint- 155 Varick St. space, which was deopted to extend a longer-term ar- ner, which opened its massive new layed by several months due to the rangement of up to five years to the flagship space at Pier 57 in October pandemic, was spurred by the Walt company “in order to maintain a 2020 but was forced to temporarily Disney Co., which snapped up the high-profile, high-quality use for run at limited capacity due to in- entire SoHo block to make way for new offices. ■ this space,” the agreement says. door dining restrictions.

MTA NEW YORK CITY TRANSIT/MARC A. HERMANN

City Winery inks deal with MTA for farm-to-table restaurant and cabaret in Grand Central Terminal

REAL ESTATE

Adams offers $5B over a decade for more affordable housing, well short of advocates’ request

BLOOMBERG

BLOOMBERG

M

ayor Eric Adams has pledged an additional $5 billion in the next 10 years to support the city's efforts to build more affordable housing. The spending proposal was made during the mayor’s first State of the City address, given at the Kings Theatre in Flatbush, Brooklyn.

The proposed funding would be split between the Department of Housing Preservation and Development, which is in charge of maintaining the city’s stock of affordable housing, and the New York City Housing Authority, the provider of public housing. The preservation department would receive $3.6 billion in housing subsides. NYCHA would receive $1.2 billion for its Permanent Affordabilty Commitment Together program, which converts homes into federally funded Section 8 units and allows NYCHA to unlock funding for maintenance work. NYCHA would receive an additional $200 million for in-unit repairs at the Gowanus and Wyckoff houses.

The housing authority, which spent $4.1 billion in 2021, is in need of $40 billion to make necessary fixes to its housing stock, which suffers from aging infrastructure and poor maintenance. The additional capital would be used to “make crit-

ical repairs at NYCHA, subsidize those who need help staying in their existing homes and build more deeply affordable housing for

cacy groups have called for.

“Unfortunately, the Adams administration’s modest capital increase for housing merely treads water and will not make a meaningful dent in this emergency,” said Rachel Fee, executive director of the New York Housing Conference, a nonprofit affordable housing policy and advocacy organization.

NYCHA’s current portfolio of housing includes 177,000 apartments across 335 housing developments. Many of the units suffer from mold, vermin, lead and heat outages.

The authority’s chief executive, Gregory Russ, said he’s put his faith in the Housing Preservation Trust bill proposed by Manhattan Sen. Brian Kavanagh and Brooklyn Assemblyman Steven Cymbrowitz.

The bill would create a new public housing entity within NYCHA that would act as a trust and trigger additional federal subsidies that could allow the authority to bond out the costs of new capital repairs. ■

“UNFORTUNATELY, THE MODEST CAPITAL INCREASE MERELY TREADS WATER” the entire city,” Adams said during his address.

Not enough?

But the proposed additional funding is a far cry from the $1.5 billion in annual funds housing advo-

DOUGLAS ELLIMAN

BY NATALIE SACHMECHI

432 PARK AVENUE

Park Avenue condo nets $70M in 2022’s richest deal to date A $70 MILLION CONTRACT at 432 Park Ave., one of Manhattan’s most exclusive addresses, is New York City’s most expensive home sale since April 2021, according to Olshan Realty.

The 82nd-floor condo unit in the Billionaires Row building was listed for $90 million in August 2020 and decreased to $79 million in April last year.

The buyers, Yossi Benchetrit and Gaëlle Pereira Benchetrit, already own another unit in the building, on a lower floor.

The seller purchased two units from the developers, CIM Group and Macklowe Properties, for $62 million in 2016, then combined them into a 8,054-square-foot apartment.

The home is over 1,100 feet in the air and contains five bedrooms, six bathrooms, two powder rooms, two offices, a media room, a chef’s

kitchen and a 1,100-square-foot great room.

Amenities at the building include a lounge, private restaurant, outdoor terrace, 75-foot indoor swimming pool, fitness center and spa, performance venue, conference room, children’s playroom and yoga studio.

Lawsuit pending The luxury building’s developers are currently facing a $125 million lawsuit from the condo board over claims of structural defects. The developers said in counter arguments filed in December that the condo board’s claims were “vastly exaggerated” and the building is completely safe. Despite the lawsuit, deals have continued to close at the building at sky-high prices.

In November a buyer closed on a $26 million unit there. Another purchased a $20 million unit in Sep—N.S. tember.

16 | CRAIN’S NEW YORK BUSINESS | May 2, 2022

P016_CN_20220502.indd 16

4/28/22 4:00 PM

REAL ESTATE

BY BETH TREFFEISEN

A

fter strong growth in Manhattan’s office-leasing market at the end of 2021, this year has started off slow, with the average asking rent on the decline in the first quarter, according to a recent Transwestern Real Estate Services report. But improvements in long-term contracts are a bright spot for the industry.

First quarter leasing activity, encompassing 6.1 million square feet, was a drop from the last two quarters of 2021, when there was growth.

However, it was an increase from the first quarter of 2021, when 56.6

March] tends to be fairly slow in Manhattan, with comparatively weak demand, so from that perspective, the quarter’s results aren’t that surprising,” said Corrie Slewett, research manager at Transwestern, in a statement. However, “there are still signs of a strengthening office market.”

Shift from shorter terms Many of the larger leases were signed for terms of 10 to 15 years or longer, showing confidence in the market, said Slewett. The pattern is shifting away from the short-term leases signed in the wake of the pandemic shutdown.

Availability of office space increased 0.6 percentage points during the first quarter from the fourth quarter, to 18.5%, the highest level in a decade, according to the report.

“While Manhattan’s overall availability increased this quarter, we continue to see stronger market fundamentals as companies better understand their immediate and long-term space needs in the city,” said Chase Gordon, Transwestern’s senior vice president, in a

BUT JOB GROWTH COULD MEAN AN OFFICE REBOUND IS ON THE WAY million square feet were leased.

The average asking rent fell 0.6%, to $68.65 per square foot, in the first quarter of 2022, marking eight consecutive quarters of decline. During the first quarter of 2021, the average asking rent was $71.95 per square foot.

“Historically, [January through

statement.

This is especially true, Gordon said, in the Class A market and for buildings that are new, well managed and well located. Landlords are pushing rents due to a renewed sense of optimism, he added.

The report shows the city might be on the verge of an office comeback, with nearly all job sectors growing.

Leasing that took place between January and March was largely driven by 15 contracts exceeding 50,000 square feet, according to the report.

There is currently 11.3 million square feet of core office product under construction in the Manhattan market, and an additional 4.8 million square feet under renovation.

About 85% of the new construction is located in the Penn Plaza submarket, with four new buildings scheduled to be complete within the next three years. Three of those

BUCK ENNIS

Manhattan office leasing slows in first few months of 2022

buildings—385 Ninth Ave., 66 Hudson Blvd. and 50 Hudson Yards— are expected to open this year.

Major deals Manhattan office transaction volume reached almost $3.9 billion in the first three months of the year.

The majority of the value was gen-

erated by two major deals: a minority stake in One Manhattan West, which sold to Blackstone for $1.4 billion, and Alphabet’s $2 billion purchase of its soon-to-be headquarters at St. John’s Terminal.

Transwestern Real Estate Services is a privately held company headquartered in Midtown. ■

HEALTH EQUITY EVENT Thursday, May 5 | 8:30 – 10 a.m. | New York Athletic Club

How can the healthcare system be more equitable?

PANEL WITH FEATURED SPEAKERS

FIRESIDE CHAT

LaRay Brown One Brooklyn Health System

Kamini Doobay, MD NYC Coalition to Dismantle Racism in the Health System

Cesar Herrera Yuvo Health

Lynne D. Richardson, MD, FACEP Institute for Health Equity Research

Hear from New York City’s new Health Commissioner, Dr. Ashwin Vasan, as he shares his thoughts on how we can improve health equity in NYC. Gold Sponsor

Silver Sponsor

Icahn School of Medicine at Mount Sinai

Learn more at CrainsNewYork.com/MayForum

REGISTER HERE!

MAY 2, 2022 | CRAIN’S NEW YORK BUSINESS | 17

P017_CN_20220502.indd 17

4/29/22 5:34 PM

Rocky Bucano Universal Hip Hop Museum

TUESDAY, JUNE 7 | 8:30-10 AM NEW YORK ATHLETIC CLUB

ARTS & CULTURE Laura Callanan Upstart Co-Lab

BUILDING SUCCESSFUL CREATIVE COMMUNITIES Be part of the discussion at Crain’s Arts & Culture event, where we will explore the complex alliance between real estate and the arts and culture communities.

Laurie Cumbo NYC Dept.

Cultural Affairs

BUY TICKETS TODAY!

CrainsNewYork.com/Arts_Culture GOLD SPONSOR:

Brian Murray SHIFT Capital

CN020736.indd 1

4/29/22 4:56 PM

FROM PAGE 1

Nationally, treatments using toxins such as Botox and fillers increased by 41% from 2020 to 2021, with more than 5.5 million procedures conducted, according to research from the Aesthetic Society, an organization that tracks cosmetic procedures.

Locally, New Yorkers’ interest in learning about the procedures is at an all-time high, per Google search data.

The before-and-after photos of the city could show a noticeable difference. The shift has given rise to a burgeoning industry as medical professionals seek to capitalize on the trend and glossy, venture-backed Botox bars greet a burned-out hospital workforce with open arms.

Blurred lines When Dr. David Shafer first started administering Botox treatments, patients would bring in photos of Jennifer Aniston and Angelina Jolie to demonstrate their ideal features.

Now they come with filtered photos of themselves.

In the early days of the pandemic, users discovered Zoom’s “touch up” filter, equipped with the superpower to smooth skin and banish under-eye bags. The videoconferencing feature can do more than reduce blemishes. A rosier pout can be achieved through lip filters in shades such as ruby, ivory pink and peony, making users feel like they’re scanning the aisles of Sephora instead of fiddling with their settings on a conference call.

Brow shape and color can also be altered, with options from caramel to taupe.

With a return to office on the horizon for many, Shafer says patients have been spilling in.

“You can’t be your virtual-reality self at work,” he said. “You have to be your real self.”

Shafer, who has had a private practice since 2007, opened a new clinic in Midtown East right before the pandemic. Elective surgeries were halted by the state, causing his business to take a hit at first, but not for long. Once pre-scheduled surgeries were reinstated, new patients curious to dabble in the world of injectables flocked in, as remote work allowed them a refuge from

facing the world if they didn’t like their results.

Most are so pleased with their enhanced appearance, Shafer said, that subsequent visits are almost a sure thing—as the body eventually metabolizes both Botox and fillers.

(In other words: The results fade.)

Some patients have grown so accustomed to their plumper faces that they found loopholes during the early days of the pandemic.

“I had a patient who was so desperate for her Botox that she went to a psychiatrist,” Shafer said. “He contacted me and said, ‘This patient is going to have a nervous breakdown if she does not get her Botox. And I think it’s a medical necessity that you treat her.’ So I did.”

Business has continued to boom.

Shafer said he has tripled his gross revenue from 2019. His office is adding two floors that will accommodate 60 more treatment areas.

He has a staff of 16, but he rents some of his space to seven other doctors.

Across the country, appointments for laser skin treatment rose by more than 137% and cosmetic dermatology consultations rose by more than 152% from 2020 to 2021, according to ZocDoc data.

ZocDoc declined to provide localized New York City numbers.

Tech takes notice Private practices aren’t the only ones cashing in on the trend. Sleek Botox bars have proliferated across the city, offering patients enticing introductory offers and colorful interior designs, a departure from cosmetic surgery’s clandestine reputation.

Ever/Body, a cosmetic dermatology center and medical spa, was founded in 2018, but CEO Amy Shecter considers it a “technology-first business,” despite the fact Ever/Body is a brick-and-mortar enterprise. The company’s goal is to “demystify cosmetic dermatology” by helping customers navigate an industry that many are curious about, even though it has been rife with misinformation and false promises.

“Conversations about whether you’ve [gotten work done] used to be in the closet,” Shecter said. “Now you go to dinner and the conversation is, ‘Oh, my goodness, did you get Botox? How much filler did you get?’ People aren’t ashamed of it; they aren’t embarrassed. It isn’t a

hidden little secret anymore.”

In 2021 Shecter saw a nearly 200% increase in Botox sales and a 300% increase in “lip flips,” a procedure in which Botox is used to freeze muscles in the upper lip, giving a poutier look without adding volume from filler. Shecter said she sees more men coming in, especially for plasma treatments—a procedure in which plasma is separated from a patient’s drawn blood and injected into the scalp for hair restoration. Ever/Body has seen a 350% increase in the procedure.

Investors are noticing. The company had raised $56 million as of September 2021. Its Series B round was led by a $38 million investment from Tiger Global Management, known for its early investments in companies such as Facebook and Peloton. Other investors include MetaProp NYC, Fifth Wall and Acme Capital.

There’s no shortage of venture-backed Botox bars vying for New Yorkers’ dollars. Peachy Studios, founded in 2019, offers a $375 flat rate for Botox in its three city studios. Plump, launched in 2017, also has three locations.

New York has even outranked Los Angeles among aesthetic injectable cities, according to Alle, Botox maker Allergan’s loyalty program. Nicci Levy is the founder and CEO of Alchemy 43, a Los Angeles– based “aesthetics bar specializing in cosmetic microtreatments” that set up shop in the Flatiron District in 2018.

Levy has found a key difference between consumers in the different markets. In Los Angeles, where people tend to work in entertainment and have more flexible jobs, patients will get their whole face done in one sitting, she said, but in New York, “People say, ‘Oh, gosh, I’d love to try that, but I’ve only got an hour before I’ve got to get back to work.’ ”

Medical pros find refuge Shafer is certified by the American Board of Surgery and the American Board of Plastic Surgery, but under New York state law, “licensed medical professionals” are allowed to administer Botox or dermal filler.

That includes registered nurses, as long as they are under the supervision of a physician, dentists, physicians and nurse practitioners.

According to research from polling firm Morning Consult, 18% of

AFTER ELECTIVE SURGERIES RESUMED, INTEREST IN BOTOX AND FILLERS SURGED ACROSS THE CITY Search engine interest over time in New York City Botox

100

Fillers

91

80 85

60 40 20 0 Jan. ’04

April ’22

SOURCE: Google trends NOTE: Numbers represent search interest relative to the highest point on the chart for the given region and time. A value of 100 is the peak popularity for

the term. A value of 50 means that the term is half as popular. A score of 0 means there was not enough data for this term.

SHECTER of Ever/Body saw a 200% increase in Botox sales in 2021.

BUCK ENNIS

BOTOX

THE NUMBER OF APPOINTMENTS BOOKED FOR DERMATOLOGICAL COSMETIC PROCEDURES HAS SPIKED NATIONALLY ACROSS CATEGORIES Increase in number of appointments from 2020 to 2021 Hair removal

270%

Spider and varicose vein treatment 214% Cosmetic dermatology consultation 152% Laser skin treatments 137% Botox treatment 66% Acne-related treatments 63% Hair loss, transplant and replacement surgery 49% SOURCE: ZocDoc

health care workers have quit their jobs during the pandemic, and 31% have considered quitting. In New York, some have found refuge in the shiny Botox bars that have sprung up across the boroughs.

“People can burn out in those situations,” said Shafer, who employs nurses and nurse practitioners who formerly worked in the city’s hospital system. “It’s not what you were expecting to do.”

Amber Campbell is a registered nurse and senior medical injector at the Chelsea location of Plump, a boutique cosmetic injectables and skin care studio that specializes in noninvasive treatments for the face and lips. Before joining Plump, Campbell worked as a nurse in oncology for seven years at Staten Island University Hospital and New York-Presbyterian/Weill Cornell Medical Center.

Although she had always had an interest in plastic surgery, the conditions ultimately caused her to quit her job without another gig lined up. Campbell was persistent and had trained with her cousin who worked in injectables. She took a training course and eventually landed her current job.

“I worked through the pandemic at a Covid hospital and went in voluntarily,” Campbell said. “At Plump, it feels like a team. At a hospital, you’re a body filling a space to get a job done.”

Though Campbell, who works part time at Plump, said she’s “not ballin’, ” she pointed out that if she

worked full time, she would have a “notable bump” from her hospital salary. The quality of life is “not comparable” to her time working at hospitals, she said.

“We don’t work weekends. We don’t work holidays. We don’t work overnights. There’s no [staffing] ratio issues,” Campbell said.

Most studios require certification or additional training and offer their own in-house education and fellowship programs, but some consumers remain skeptical.

Grace Ann Sweeney has a ninestep daily skin care routine. Her arsenal consists of a NuFace facial toning device that deploys low-level electrical currents to the facial muscles to prevent wrinkles, a gua sha (a flat, smooth-edged tool used to conduct a traditional Chinese healing method), chemical peels, cleansers, daily sunscreen, masks and microneedling.

“We’re aging like the president,” said Sweeney, 30. “These have been some stressful years.”

Sweeney recently invested in a package of laser facials at LaserAway, an aesthetic dermatological services provider. She was surprised when she received complimentary units of Botox with her purchase.

Despite her valiant battle against gravity, she wasn’t interested.

“These new places make it seem like you are just going in to get a manicure, but you can take a manicure off in a week,” Sweeney said.

“You can’t take your Botox off in a week.” ■

MAY 2, 2022 | CRAIN’S NEW YORK BUSINESS | 19

P019_CN_20220502.indd 19

4/29/22 3:38 PM

CLASSIFIEDS

Advertising Section

Contact Suzanne Janik at 313-446-0455 or email: sjanik@crain.com

PUBLIC & LEGAL NOTICES

INVITATION TO BID Construction Trades Requirements Contract

The CUNY CONSTRUCTION FUND has posted a solicitation at http://www.cuny.edu/about/administration/offices/fpcm/cucf/procurement/current /#1649614674374-504b262d-c0a4 seeking proposals for Requirements Contracts for various Construction trades. Please download the bid documents and attend one of our 2 prebid conferences via zoom, link at the above website.

PUBLIC & LEGAL NOTICES Notice of formation of Ahlex LLC. Arts of Organization filed with the SSNY ON 11/12/2021. Office location: New York County. SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to 2804 Gateway Oaks Dr # 100 Sacramento, CA 95833. Purpose: Any Lawful act.

Notice of Formation of CLAREMONT HOMEOWNERSHIP LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 03/18/22.

Office location: NY County. Princ. office of LLC: 116 E. 27th St., 11th Fl., NY, NY 10016. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 12207.

Purpose: Real estate development.

Notice of Formation of 1 CENTRAL PARK WEST 38B LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 02/15/22.

Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to M. Nader Ahari, 200 Park Ave. South, Ste. 1608, NY, NY 10003.

Purpose: Any lawful activity.

Notice of Formation of QTD SYSTEMS 1 LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 04/15/22.

Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Scott Markowitz, Esq., Tarter Krinsky & Drogin LLP, 1350 Broadway, NY, NY 10018.

Purpose: Any lawful activity.

Notice of Qualification of CANNON HILL CAPITAL PARTNERS LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 03/16/22.

Office location: NY County. LLC formed in Delaware (DE) on 02/24/22. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co. (CSC), 80 State St., Albany, NY 12207. DE addr. of LLC: c/o CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, 401 Federal St., #4, Dover, DE 19901.

Purpose: Any lawful activity.

NOTICE OF FORMATION OF Kelsey Dunn Mental Health Counseling, PLLC. Arts of Org filed with the Secy. of State of NY (SSNY) on 02/16/2022. Office loc: NY County. SSNY designated as agent upon whom process against it may be served. Address to which the SSNY shall mail a copy of any process against the PLLC served upon him/her is 119 W. 72 St #102 New York, NY 10023. Principal business address of the PLLC is the same. Purpose: any lawful act or activity.

Notice of Formation of 46TH STREET CALLAGY FAMILY LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 03/17/22. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC, 72 Glendale Rd., Rye, NY 10580.

Purpose: Any lawful activity.

Notice of Formation of EC Pietanza Consulting, LLC. Arts of Org filed with Secy. of State of NY (SSNY) on 02/21/2022.

Office location: NY County. SSNY designated as agent upon whom process may be served. The address SSNY shall mail process to Elizabeth Pietanza, 454 W 54th St., Unit 3F, NY, NY 10019.

Purpose: Any lawful activity.

Notice of Formation of SONNY PRODUCTIONS LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 04/19/22.

Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC, 146 Central Park West, 10D, NY, NY 10023.

Purpose: Any lawful activity.

Notice of Qualification of 1898 HEALTH, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 03/18/22.

Office location: NY County. LLC formed in Delaware (DE) on 01/28/22. Princ. office of LLC: 6205-B Peachtree Dunwoody Rd., Atlanta, GA 30328. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co., 80 State St., Albany, NY 12207-2543.

DE addr. of LLC: CSC, 251 Little Falls Dr., Wilmington, DE 19808.

Cert. of Form. filed with DE Secy. of State, Corps. Div., 401 Federal St., Ste. 4, Dover, DE 19901.

Purpose: Health care sales.

Notice of Formation of PANTS VIEW 3, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 03/11/22.

Office location: NY County. Princ. office of LLC: 200 Park Ave. South, 8th Fl., NY, NY 10003. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the addr. of its princ. office. Purpose: Any lawful activity.

Notice of Qualification of PEARL PRIMARY CARE NETWORK LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 03/18/22.

Office location: NY County. LLC formed in Delaware (DE) on 03/16/22. Princ. office of LLC: 520 Broadway, 4th Fl., NY, NY 10012.

SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543. DE addr. of LLC: c/o CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, Div. of Corps., John G. Townsend Bldg., 401 Federal St. - Ste. 4, Dover, DE 19901.

Purpose: Any lawful activity.

Notice of Formation of PJ HOUSING ACQUISITION, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 04/20/22.

Office location: NY County. Princ. office of LLC: 30 Hudson Yards, 72nd Fl., NY, NY 10001. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co, 80 State St., Albany, NY 12207-2543.

Purpose: Any lawful activity.

Notice of Qualification of 263 W 34TH STREET LENDER, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 03/18/22. Office location: NY County. LLC formed in Delaware (DE) on 11/09/21. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Marathon Asset Management L.P., One Bryant Park., 38th Fl., NY, NY 10036. DE addr. of LLC: 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, Div. of Corps., 401 Federal St., Ste. 4, Dover, DE 19901.

Purpose: Any lawful activity.

Notice of Formation of NEUMANN BROOME ST. LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 03/22/22.

Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Jeffrey Neumann, 971 Huron Rd., Franklin Lakes, NJ 07417.

Purpose: Any lawful activity

Notice of Qualification of PEARL NETWORK LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 03/18/22.

Office location: NY County. LLC formed in Delaware (DE) on 03/16/22. Princ. office of LLC: 520 Broadway, 4th Fl., NY, NY 10012.

SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543. DE addr. of LLC: c/o CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, Div. of Corps., John G. Townsend Bldg., 401 Federal St. - Ste. 4, Dover, DE 19901.

Purpose: Any lawful activity.

COHN GROWTH, LLC filed Arts. of Org. with the Sect'y of State of NY (SSNY) on 3/18/2022. Office: NY County. SSNY has been designated as agent of the LLC upon whom process against it may be served and shall mail process to: c/o Greenberg Traurig, LLP, 54 State St., 6th Fl., Albany, NY, 12207. Purpose: any lawful act.

PBTEX PR LLC filed w/ SSNY on 2/4/22. Office: New York Co. SSNY designated as agent for process & shall mail to: c/o Smith & Shapiro, 116 E. 27th St., 3rd Fl, NY, NY 10016. Purpose: any lawful.

Notice of Qualification of BOW STREET SPECIAL OPPORTUNITIES GP XVIII, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 03/15/22.

Office location: NY County. LLC formed in Delaware (DE) on 01/26/18. Princ. office of LLC: 595 Madison Ave., 29th Fl., NY, NY 10022. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the princ. office of the LLC. DE addr. of LLC: Corporation Service Co., 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, State of DE, Dept. of State, Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901.

Purpose: Any lawful activity.

Notice of Formation of 44 DIGITAL ENTERPRISES LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 04/07/22.

Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 12207-2543.

Purpose: Any lawful activity.

Notice of Qualification of 10X DIVERSITY CARRY VEHICLE I, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 04/04/22.

Office location: NY County. LLC formed in Delaware (DE) on 01/24/22. Princ. office of LLC: 1 World Trade Center, 85th Fl., NY, NY 10007. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543.

DE addr. of LLC: CSC, 251 Little Falls Dr., Wilmington, DE 19808.

Cert. of Form. filed with Jeffrey W. Bullock, Secy. of State - State of DE, Div. of Corps., John G. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901.

Purpose: Any lawful activity.

670 THURSTON ROAD LLC. Arts. of Org. filed with the SSNY on 11/27/20. Office: New York County. SSNY designated as agent of the LLC upon whom process against it may be served. SSNY shall mail copy of process to the LLC, 1221 Fteley Avenue, Bronx, NY 10472.

Purpose: Any lawful purpose.

Advertising

CLASSIFIEDS Contact Suzanne Janik at 313-446-0455 or email: sjanik@crain.com

20 | CRAIN’S NEW YORK BUSINESS | MAY 2, 2022

P020_CN_20220502.indd 20

4/29/22 9:17 AM

C

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

CN020022.indd 1

12/4/20 1:32 PM

FROM PAGE 1

July 1, is pushing for a budget with more money allocated toward youth employment programs, mental health counseling and city infrastructure.

Public safety Adams beefed up spending on homelessness beyond his February commitments, pledging $171 million more annually. The city will add 1,400 beds, for a total of 4,000 next year.

The mayor described the spending as part of a broader investment in public safety.

“Public safety isn’t just about bringing down the crime rate,” Adams said. “It’s about helping those who need it most, including those experiencing homelessness, many of whom are at risk from violence

themselves.”

Adams also tacked on an additional $182 million to the more than $5.5 billion Police Department budget.

The budget plan gives a $55 million boost to the Behavioral Health Emergency Assistance Response Division. Under the B-HEARD program, mental health professionals, instead of law enforcement, respond to people experiencing mental health crises.

Jobs The budget adds about $285 million toward education and career development initiatives. Adams in his speech highlighted a plan to spend $33 million for the Department of Education to launch new career pathways programs starting in September that will be focused on health care and technology, among other high-growth sectors.

An additional $140 million will

be committed to infrastructure improvements at the Hunts Point Produce Market.

Housing Adams pledged an additional $5 billion in the next 10 years to support the city’s efforts to build more affordable housing—a pledge he called the largest in a generation. But it is still only a quarter of what advocacy groups say is needed annually.

“Unfortunately, the Adams administration’s modest capital increase for housing merely treads water and will not make a meaningful dent in this emergency,” said Rachel Fee, executive director of the New York Housing Conference, a nonprofit affordable housing policy and advocacy organization.

The proposed funding would be split between the Department of Housing Preservation and Development, which is in charge of maintaining the city’s stock of affordable housing, and the New York City Housing Authority.

Streets

GETTY IMAGES

CLEARING HOMELESS encampments earned the mayor critics

Amid a spike in traffic deaths, Adams pledged $904 million in the next five years to build out bus and bike lanes. The spending is $2.2 billion short of what the City Council wanted for the initiative. Still, elected officials and transit advocates lauded the funding as a crucial step toward addressing street safety.

Danny Harris, executive director of the nonprofit Transportation Alternatives, said the funding sent “a

MAYOR PLEDGED new spending on affordable homes strong message to New Yorkers that our city’s path forward is on streets for people.”

Adams also pledged to reduce the city’s vehicle fleet to save $13.7 million.

Economic headwinds Adams’ executive budget takes a “cautious approach” to projecting revenue, citing an uneven performance on Wall Street and office vacancies that will likely weaken the commercial real estate market.

The city’s unemployment rate was 6.5% in March, compared with 3.6% in the U.S. The city has added jobs at a faster pace since the start of the year, however, and Adams’ office projects employment will recover by the summer of 2024, six months ahead of earlier projections.

Response The spending boost from Adams’

AP PHOTOS

BUDGET

initial proposal disappointed some budget hawks.

“The mayor funds some crucial priorities but takes virtually no action to offset this spending with savings, other than the welcome reduction in the city’s fleet,” said Andrew Rein, president of the Citizens Budget Commission.

City Council Speaker Adrienne Adams praised the proposed investments in homeless services and mental health professionals but said in a statement that the council “will continue its efforts to secure additional investments in essential areas that require more support to advance our city,” including more funding for affordable housing, sanitation, year-round youth programs, student support services and expanded health care access. ■ Natalie Sachmechi, Cara Eisenpress, Caroline Spivack and Shuan Sim contributed reporting.

2022

WOMEN IN SPORTS Crain’s New York Business’s 2022 Notable Women in Sports recognizes top women from professional firms specializing in sports business in NYC.

NOMINATE NOW! Deadline is June 17 Nominate at CrainsNewYork.com/NotableWomenSports 22 | CRAIN’S NEW YORK BUSINESS | MAY 2, 2022

P022_CN_20220502.indd 22

4/29/22 6:03 PM

GOTHAM GIGS

FELIX FIGUEROA AGE 54 BORN Upper West Side RESIDES Sunnyside, Queens EDUCATION Park West High School; New York Trade School of Art, where he studied silk screening UNION RESPONSIBILITIES In his role as a job steward for 32BJ SEIU union, Figueroa delivers member information to other doorman buildings in the community, travels to Albany to push legislation and organizes local political events and meetings for members.

BASEBALL ZEN For Figueroa, baseball is a form of therapy.

When he is not working at the Hamilton, he can be found umpiring for middle school, high school and travel team games across the region.

HOME TEAM Figueroa is one of four doormen on staff, with the others working various shifts. He works weekdays.

BUCK ENNIS

FIGUEROA says he can track north of 5,000 packages per week for Hamilton tenants.

Opening new doors on the job

Morningside Heights concierge notes how pandemic has changed his role

BY BETH TREFFEISEN

F

elix Figueroa, 54, never imagined he would have a career as a doorman. More than three decades ago, he was working the night shift at a grocery store when a friend of a friend reached out about an open position at the Hamilton, located at 420 Riverside Drive in Morningside Heights.

Figueroa grabbed his rèsumè and went to apply the next day. The manager took one look at his credentials and said, “You’re hired.”

He’s been at the job for 33 years.

His day begins when he travels by subway from his home in Sunnyside, Queens, to work. He changes into his uniform and begins his shift at 7 a.m. Then he prepares for the hectic day ahead of him.

“The era of the doormen changed dramatically,” he said, “especially in the past two years.”

When the pandemic began, the work of thousands of building con-

cierges across the city, which once constituted mainly opening doors, helping with groceries or luggage, cleaning the lobby and managing keys for tenants, was upended by a deluge of package deliveries and repair requests.

Each package delivered to the Hamilton is logged into a computer system to alert residents to its arrival. Now that tenants do most of their shopping online, it can be a struggle to keep up with recording them, Figueroa said. He estimates that he deals with more than 5,000 packages in a typical week. That number could balloon to 2,000 a day during the holiday season.

What’s more, as Covid shutdowns and remote work kept tenants at home, the wear and tear on apartments mounted, causing increases in maintenance calls. When Figueroa is not addressing those concerns, he is watching 16 security cameras.

“Everybody goes straight to the

doorman for every little thing,” he said. “It’s not the old days anymore, when you would sign for a couple of packages and just be around the lobby.”

A new deal In addition to his day job, Figueroa has a role as a job steward for the 32BJ SEIU union, which represents doormen and -women as well as maintenance workers. It has more than 32,000 residential members in Manhattan, Queens and Staten Island. Membership continues to grow as new buildings spring up across the city, with over 1,800 new residential workers joining since 2018.

Recently, union members threatened to strike after stalled negotiations with the Realty Advisory Board of Labor, which handles collective-bargaining agreements on behalf of real estate owners and operators. The board initially proposed cutting vacation days and

sick leave. It also wanted union members to cover more of their health care costs. However, following negotiations, a new deal was reached. Union members’ time off won’t be changed, and their annual wage will increase by an average of 3% each of the next four years.

Currently, doormen are paid $26.45 an hour on average, or around $55,000 a year, according to 32BJ SEIU. Figueroa credits the union for igniting his passion for local government. Now when he attends community board meetings, he said, “I don’t feel like an outsider.”

All in all, Figueroa enjoys his job for the security and benefits that help provide for his family. But it has other, intangible perks. He has watched couples move into the building and have children, then watched those children go off to college.

“It is a great thing to see [families] grow,” he said. ■

MAY 2, 2022 | CRAIN’S NEW YORK BUSINESS | 23

P023_CN_20220502.indd 23

4/29/22 3:28 PM

2022

Fastest Growing Companies in New York Every year, Crain’s New York Business ranks the 50 fastest-growing companies in the New York area who have thrived and raced ahead of the pack. These companies are on the cutting edge, not only making significant contributions to the strength of our local economy but also transforming the way we do business every day.

The top 50 companies will be listed in a special feature within our print and digital publication, highlighting the innovative companies and successful entrepreneurs.

NOMINATE NOW! CrainsNewYork.com/NominateFast50 Nomination Deadline is Thursday, June 30

CN020738.indd 1

4/29/22 5:05 PM