CRAIN’S 50

#4NEOSTEM:Acquisitions havehelped Dr. Robin L.Smith grow her cell-therapystartup 7,998%.

#47SHUTTERSTOCK:Jon Oringer’s customersdownloaded 100 millionpictures last year.

#14YEXT: HowardLerman found abig opportunitycorrecting outdatedinformation aboutbusinesses online.

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CRAIN’SNEW YORK BUSINESS®

VOL. XXX, NO. 41 WWW.CRAINSNEWYORK.COM

07148601068

541

They run New York’s fastest-growing companies

MEET ALL 50 OF THEM, INCLUDING #1, STARTING ON PAGE 16

From zeroto $1B inless thanfive years

BY MATTHEW FLAMM

When Kevin Ryan was buildingDoubleClick in the late 1990s, hecouldn’t persuade a single WestCoast executive to quit his job andmove to New York to work at thead-tech pioneer. There are manyreasons why he and other local en-trepreneurs don’t have that prob-lem now, but a summary mightboil down to the growth in NewYork’s billion-dollar valuation club.

Granted, private-company valu-ations can be fleeting, subject tohype and the whims of the market,and this is one more area in whichSilicon Valley vastly overshadowsNew York. Mostmembers of theso-called unicornclub—billion-dol-lar startups beingrare beasts—arebased in Califor-nia, where theybarely warrant mention unlesstheir valuations touch double-digit billions, like Dropbox ($10billion) or Uber ($18 billion).

But New York City has grownits membership in the club frombasically zero five years ago to agood half-dozen now, with an-other half-dozen either closing inon a billion or more than midwaythere. Founders and investors seethe increase as a symbol of thecity’s momentum and an addi-tional spur to growth.

“More people want to invest inyou because they think you aregoing to win,” Mr. Ryan said ofthe privileges of club membership.“It’s easier to recruit, and to getmore press. A lot of advantages

OCTOBER 13-19, 2014 PRICE: $3.00 50First billion-dollarstartups prove New York firms cangrow at warp speed

IF THESEFAST 50ARE SOGREAT, WHYARE NEARLYA THIRDPROFITLESS?PAGE 31

See BILLION-DOLLAR on Page 31

2 | Crain’s New York Business | October 13, 2014

AMAZON GOES OFFLINE. The e-com-merce giant plans to open its firstbrick-and-mortar store just in timefor the holidays. The shop, a mini-warehouse that will offer same-daydelivery within the city, will be acrossthe street from the Empire StateBuilding. Amazon’s Kindles, Firesmartphones and set-top TV boxesmay eventually be showcased there.… WALDORF ASTORIA SOLD. China’sAnbang Insurance Group bought thelandmarked Art Deco hotel for $1.95billion, or $1.4 million per room—the largest U.S. real estate acquisitionby a Chinese buyer. … NEW EXPORT-IMPORT BANK. NewYork state will invest$35 million in a bankto boost economic-development efforts.The bank will provide$25 million in loansto help local compa-nies enter overseasmarkets and $10 mil-lion to help firms ex-port their products.Gov.Andrew Cuomosaid he will travel toChina, Israel, Cana-da, Mexico and Italyto promote trade. …CITI REFUNDS. Citi-group will return $16million to more than 31,000 cus-tomers who were allegedly over-charged for advisory fees on certain

investments, according to an agree-ment with New York state. Most ofthe accounts, primarily low-risk in-vestments with a focus on mutualfunds, were opened before 2009. …POLICE CHOKEHOLD SUIT. The familyof Eric Garner,the Staten Island manwho died as a result of a police choke-hold in July, intends to file a $75 mil-lion suit against the city, the PoliceDepartment and eight officers. …NEWSWEEK MAKES MONEY. In Sep-tember, the magazine reported itsfirst profitable month since it was ac-quired by IBT Media last year.Newsweek said revenue grew 400% in

the past year, whileadvertising dollarswere up 100-fold. Itsprint edition re-turned to newsstandsin March.… TBS JOBCUTS. Time Warner’sTurner BroadcastingSystem group willshed 1,475 jobs, 10%of its workforce. Jobswill be eliminated in18 offices, includingNew York. The cutscome as the Atlanta-based network worksto refocus its re-sources on attractinga younger demo-

graphic by developing more originalprogramming and investing insports. … UNION BOSS TO RETIRE.

Lillian Roberts, executive director ofDistrict Council 37,will depart at theend of the year. Ms. Roberts, 86, hasspent 60 years working for the labormovement, including more than adecade as the head of the city’s largestpublic-employee union. Henry Gar-rido, associate director at the laborgroup, will succeed her. … WHAT’S INA CRONUT? Baker Dominique Anselrevealed the recipe for the famed treatin his new cookbook.A batch of eightcontains more than three sticks ofbutter.

FYICRAINSNEWYORK.COM

‘It’s like aroller-coasterride. If you

make itthrough thefirst trip, youcan’t wait toget back on’

—Comedian Jan Hooks,who died last week at age57, recounting her first

episode of Saturday NightLive

STORIES TO WATCH THIS WEEKOct 13: MadisonSquare Park ShakeShack closes forfive-month renovation.

Oct 14: PublisherHarperCollinsreleases AndrewCuomo’s memoir,All Things Possible.

Oct. 15: First NYScomptroller debatebetween RobertAntonacci and TomDiNapoli

Oct. 18: WhitneyMuseum begins 36-hour Jeff Koonsmarathon exhibit.

EDITOR’S NOTE

Speed freaksWhat I love most about our annualFast 50 project is that it’s all aboutthe numbers. You can’t sweet-talkyour way onto this list. You can’thire a PR firm that knows someonewho knows someone who went toschool with someone. Either youhave two to three years ofscorching-hot revenue growth, oryou don’t. And this year’s ranking

of New York’s 50 fastest-growing companies offersscorchers galore. We’ve estimated that No. 1-rankedCantor Commercial Real Estate saw its annualrevenue grow 24,591% (that’s not a typo), to $226million, from 2010 to 2013. Clearly, it’s a good timeto be financing real estate deals. Not a bad moment tobe a digital advertising vendor, either: Close onCantor’s heels is LiveIntent, which helps marketersplace e-newsletter advertising and saw three-yearrevenue growth of 20,900%, to $21 million, in 2013.The Fast 50 companies profiled in this week’s issuerange from biotech startups to fashion websites, fromsolar-power installers to baby-products makers.Theircustomers are fitness fanatics (Tough Mudder),financial news junkies (Business Insider) and fussysleepers (Bedgear). Here’s the one constant: Each sawmore than 150% revenue growth in the time periodswe reviewed with the help of accounting firm AnchinBlock & Anchin. If you’re an investor or banker orreal estate broker or business-services providerlooking for the New York companies that best knowhow to execute their strategies for building revenue,the companies profiled on Pages 16 through 30 arebasically your short list. So congrats, Fast 50. Enjoythe attention and its many upsides. Of course, withyour three-digit, four-digit and even five-digitrevenue-growth numbers, one can only hope it’s notall downhill from here. If that’s the case—and, ofcourse, the law of gravity inevitably will insist asmuch—may you enjoy a slow and steady decline.

Glenn Coleman

—emily laermer

IN THE BOROUGHS-------------------------- 3IN THE MARKETS----------------------------------4THE INSIDER -----------------------------------------------7BUSINESS PEOPLE-----------------------10OPINION --------------------------------------------------------14STEVE HINDY------------------------------------------15GREG DAVID--------------------------------------------15FAST 50----------------------------------------------------------16CLASSIFIEDS -----------------------------------------34REAL ESTATE-------------------------------------------37SOURCE LUNCH--------------------------------42

THIS WEEK IN CRAIN’S

NEW YORK, NEW YORKCity Winery founder andCEO Michael Dorf is inexpansion mode. P. 41

CORRECTIONS (SEE PAGE 40)

vol. xxx, no. 41, october 13, 2014—Crain’s New York Business (ISSN 8756-789x) is publishedweekly,except for double issues the weeks of June 23, July 7, July 21,Aug.4,Aug.18 and Dec.22,by Crain Communications Inc.,685Third Ave.,New York,NY 10017.Periodicals postagepaid at New York,N.Y., and additional mailing offices.Postmaster: Send address changes to:Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit,MI 48207-2912.for subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 oneyear, $179.95 two years. (GST No. 13676-0444-RT)©Entire contents copyright 2014 by Crain Communications Inc. All rights reserved.

HOORAY!

A BLACKBEAR CUB

found dead inCentral Park

was reportedlyrun over by a car.

NEW YORK CITY-BORN JohnO’Keefe, alongwith two otherscientists, won theNobel Prize inmedicine for theirdiscovery of thebrain’s “innerGPS.”

Hospitals prep for Ebola

New York City is on a high Ebolaalert. ¶ At John F. KennedyInternational Airport, federal

health officials last week began screeningthe temperatures of passengers arrivingfrom Sierra Leone, Liberia and Guinea.JFK is the entry point in the U.S. fornearly half the arrivals from those WestAfrican nations. City agencies also havemobilized to set up a clear protocol foraddressing potential cases, while local hospitals have implemented Ebola drills at emergencyrooms aimed at early identification of patients exposed to the virus. Bellevue Hospital Center inManhattan has dedicated isolation rooms and lab facilities to care for Ebola patients. ¶ Despitethe prepping, it’s unclear whether the city can handle an outbreak. “I don’t think New York orany city has the resources,” said Paula Grace Dunn Tropello, dean of Wagner College’s SpiroSchool of Nursing, who estimates that it takes about 100 staff workers to take care of an Ebolapatient, with rotations. ¶ So far, there have been no confirmed Ebola cases in the city, and MayorBill de Blasio has told New Yorkers that “there is no cause for alarm.”The virus has claimed morethan 4,000 lives internationally and one in the U.S. ¶ The precautions and assurances have notcalmed fears. Airline-cabin cleaners for a Delta Air Lines contractor at LaGuardia Airport wenton a brief strike last week because of concerns over the risk of getting Ebola.

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—barbara benson

OY VEY!

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BY AARON ELSTEIN

Two of Wall Street’s most powerful players are quietly wag-ing war against each other in Manhattan courtrooms.

On one side stands Carl Icahn,the world’s pre-eminentactivist investor, a man who has built a $26 billion fortuneby bullying management teams at Apple, eBay and manyothers to do whatever it takes to lift their stock price.

His foe is Martin Lipton, New York’s leading corporatelawyer and the creator of the legal defenses known as poisonpills, which companies use to thwart the likes of Mr. Icahn.

These two titans of New York have fought in board-rooms for decades and seem to relish attacking

each other publicly. At a conference earlierthis year, the 78-year-old Mr. Icahn de-scribed Mr. Lipton as “a witch doc-tor” for saying activists harm com-panies without producing what hedeemed viable evidence.

Mr. Lipton, 83, last year charac-terized the campaigns undertakenby people like Mr.Icahn as “a formof extortion”because they “createshort-term increases in the mar-ket price of their stock at the ex-pense of long-term value.”

Now the longtime adver-saries are fighting in New Yorkstate and federal courthouses inlower Manhattan. Lawyerssparred at a hearing last week.The ostensible purpose was topick the battlefield in theirlong-running war, but it alsoserved to highlight Mr.Icahn’s thirst for making hisenemies suffer.

The dispute involves acompany controlled by Mr.Icahn called CVR Energy,which filed a legal malprac-tice suit in Manhattan feder-

Developments alongEast 125th Streetrenew hopes for growth

BY DANIEL GEIGER

One sunny morning last week, anengineer with Consolidated Edisonunfurled a large sheet of blueprintsin front of a block-long vacant lot atEast 125th Street and Park Avenue.In doing so,he offered the most con-crete sign to date that after years offalse starts—under a series of devel-opers—Harlem’s tallest tower willrise on the site.

“I wouldn’t be here if they didn’tplan to break ground,” saidWilliam, who declined to give hislast name, as he eyed drawingsfor the transformers and otherelectrical infrastructure thatCon Ed aims to install under thesidewalk to power the planned352-foot-tall residential towerset to open in 2017.

The prep work for the tower isthe latest evidence that the long-talked-about transformation ofEast 125th Street, which haslagged the revival seen along West125th Street in recent years, is final-ly gaining real momentum.

Just across the street to the north,the reconstruction of the landmark

E. Harlemtakes cuesfrom West

IN THE BOROUGHSMANHATTAN

BY THORNTON MCENERY

Mayor Bill de Blasio’s decision lastweek to remove “beacons” from 500pay phones across town may havetamped down concerns in the mediathat the technology invades privacy,but it also ignored a growing reality:The devices, which can be used tosend tailored advertisements to thephones of passersby, are already ac-tive in some of the city’s busiest re-tail corridors.

The Apple store in Grand Cen-tral Terminal is equipped with atleast two Apple iBeacons. Macy’s,which experimented with beacons

during the 2013 holiday shoppingseason, will use them again this yearin its New York City stores. Lord &Taylor has tested beacons in itsstores, as has Walgreens, whichrolled out Apple iBeacon technolo-

gy in several Duane Reade shopsthis spring. And small retailers maybe right behind them.

Despite being characterized asinvasive, beacons cannot simply en-gage with any random device. Users

need to turn on their phone’s Blue-tooth function, have an app that isbuilt to communicate with beaconsand agree to receive notificationsbased on their location.

“Beacons aren’t tracking you;you track beacons,” said ColinO’Donnell, COO of technologyand design consultancy ControlGroup. “They are not active piecesof technology; the apps you’vedownloaded decide which beaconsare worth using or not.”

Mr. O’Donnell describes bea-cons as being similar to GPS satel-lites—just smaller, more energy-efficient and brought down to streetlevel. Much in the same way satel-lites use cellular connections totrack the movement of devices, bea-cons are also capable of identifyingdevices using something calledBluetooth Low Energy technology.That BLE signal is less taxing on the

See BEACONS on Page 40

Mayor’s fears over pay-phone‘beacons’ don’t fly for retailers

October 13, 2014 | Crain’s New York Business | 3

Major chains havealready rolled outthe ad technology, with more to follow

STATS AND THE CITY

14%PPOORRTTIIOONN ofNew York Citythat isparkland,about 29,000

acres

$5.7BAAMMOOUUNNTT spent by the city to improve andbuild new parks during the past 20 years

76.4%PPOORRTTIIOONN of New Yorkers living within aquarter-mile of a park

$43.7MMMIINNIIMMUUMMNNEEEEDDEEDD to repair

the city’s seawalls from fiscal 2014 tofiscal 2017. Only 20% is committed

$76.4K22001133 MMEEDDIIAANNSSAALLAARRYY for the city’s

387 park supervisors

1686YYEEAARR Battery Park was created—the third-oldest park in the

nation. Seven city parks, including UnionSquare, are among the nation’s 25 oldest

‘They aren’ttracking you;you track them’

See EAST HARLEM on Page 13

ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY

by Nicholas Wells

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PRIMPING PARKS: Mayor Bill de Blasio last week announced $130 million incapital funding for 35 parks in the city’s poorest neighborhoods. More than 200parks need rehab, said Parks Commissioner Mitchell Silver.

Sources: NYC Departmentof Parks and Recreation,Center for an Urban Future,NYC Mayor’s ManagementReport, SeeThroughNY, theTrust for Public Land

Carl Icahn vs. Martin LiptonThe legendary activist investor squares off against the legendary corporate lawyer in a little lawsuit that’s less about money and more about inflicting maximum pain

LEGAL EAGLE: Thefirm of Martin Liptonis being dragged intocourt for allegedlygiving bad advice.

ACTIVIST ICON:Carl Icahn isn’thappy about havingto pay millions infees after acquiringCVR Energy.

See ICAHN on Page 40

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Want more info on our donedeals? Scan the QR Code with your smart phone.

We congratulate our client

on the grand opening of the

Mirbeau Inn & Spa at the Pinehills

a new addition to the Mirbeau hospitality family

Citi sheds the last of its failed union

IN THEMARKETS

And last week, the bank beganshedding the last of its legacy withMr. Weill when it announced itwould spin off OneMain Financial.

OneMain has operated under avariety of names over the years, butonce upon a time, it was a subprimelender known as Commercial CreditCo. Commercial Credit was ac-quired by Mr. Weill back in 1986.Along with a 30-year-old chief fi-nancial officer named Jamie Dimon,he turned the company into a suc-cessful vehicle that acquired com-panies such as Primerica, SmithBarney and Travelers Group, andculminated with Citicorp.

Citigroup says OneMain doesn’tfit its vision of catering to higher-end clients.OneMain mostly servesthe financially stressed, with cus-tomers bringing an average creditscore of 630 and income of $45,000.

With $10 billion in assets, One-Main is the largest part of CitiHoldings, the bank’s collection offlotsam and jetsam since the finan-cial crisis. It has more than 5,000employees and 1,141 branches in

the U.S. It’s profitable, generating$287 million in net income in thefirst half of this year on $1.1 billionin revenue. While that’s only 7% ofCiti’s first-half earnings of $4.1 bil-lion,OneMain’s healthy profit mar-gin reflects how lucrative subprimelending can be when borrowers havejobs and can afford to repay loans.

Historically, states regulatedsubprime lenders. Now the federalConsumer Financial Protection Bureauis scrutinizing the business.

One potential trouble spot iscustomer complaints. For years,companies like OneMain have re-quired consumers to settle disputesthrough arbitrators, who keep thematters private. But OneMain saysthe CFPB may limit mandatory ar-bitration, which could mean allow-ing borrowers to sue in court andgive any alleged wrongdoing bylenders a public airing.

In discussing the possiblechange, OneMain drily observes inits prospectus that “our litigationexposure could increase.” It surecould. �

corb

is

by Aaron Elstein

The news back on April 6, 1998, that Sandy Weill’sTravelers Group would merge with John Reed’sCiticorp to create Citigroup, was treated like a royal

wedding. “The financial-services landscape changedovernight, literally,” declared the next day’s Wall StreetJournal in an article pondering the new global financialsupermarket’s awesome potential.

Time hasn’t been so kind to Citi, of course.The bank longago disavowed its goal of being a financial everything-to-everybody and, after its near-death experience six years ago,began calling the healthier parts of its business “Citicorp”again to reconnect with a more prosperous past.

19%DECLINE IN CRUDEOIL PRICES sinceJune 20. Analysts

attribute the sharp drop to a slowing globaleconomy and heavy U.S. production causinga glut in supply. is

tock

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IN THE FULL BLOOMOF YOUTH: Sandy Weill(left) and Jamie Dimonat a conference in 1983.

November 17-18Pier Sixty, NYC

Learn How Tech is Shaping the Future of Healthcare

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SMALL BUSINESS

BY DIANE HESS

RoboFun Chief Execu-tive Laura Allen hasbuilt a fast-growingfirm that teaches chil-dren about technology

via hands-on activities such as de-signing a robot that can hit a golf ball.

Youngsters flock to the 3,000-square-foot RoboFun studio at West102nd Street and Broadway to buildrobotic bald eagles with movablewings and Rube Goldberg deviceswith multiple moving parts, and takeclasses in Lego robotics, video-gamedesign and stop-motion animation.RoboFun also offers its workshops at70 city public and private schools.

“Families in Latin America,Eng-land and Africa have contacted meabout opening branches overseas,”said Ms.Allen.“It’s great to be able togrow a business in a way that allowsme to support children and connect

them to what is important to them.”RoboFun, winner of Crain’s Per-

fect Pitch Competition in 2012, isone of more than a dozen tech-focused educational businesses inNew York City that are part of thequickly expanding “maker move-ment,” a global community of inven-tive types devoted to do-it-yourselfprojects that embrace technology.The number of maker-related educa-tional programs has exploded in partbecause parents increasingly recog-nize that American children lag theirinternational peers in science, tech-nology, engineering and mathemat-ics—the so-called STEM subjects.

Maker Faires and magic wands“Research suggests STEM edu-

cation develops critical-thinkingskills and science literacy, whichdrives innovation and economic ex-pansion,” said Ari Ginsberg, a pro-fessor of entrepreneurship at NewYork University. “The businessworld has signaled its need to hirepeople with substantial STEM ex-pertise, and parents want to makesure those opportunities are avail-able to their children.”

Ms. Allen projects revenue forher 16-year-old firm will reach $1.3

million this year and 20% growthnext year. Meanwhile, she expects$140,000 in grant funding in 2015,plus new revenue from licensing hercurriculum. That will help her ex-pand her team of six full-time and20 part-time employees by 55%.

“Businesses like RoboFun aresuccessful because they provideyoung people an opportunity to ex-plore science, technology and engi-neering by undertaking projects thathave meaning to them,” said Mar-garet Honey, chief executive of theNew York Hall of Science in Flush-ing, Queens, which hosts an annualMaker Faire and recently added a$4 million Design Lab.

Brooklyn Robot Foundry,a three-year-old business in Park Slope,teaches students to understand theengineering aspect of design.Young-sters learn to power a light-emittingdiode with a battery pack and wires,and then use their imaginations toadd decorative materials.

“The children could turn theirLEDs into a magic wand or thetrunk of an elephant that lights up,”said founder and CEO Jenny Young,a mechanical engineer.“Our missionis to allow 8-year-old children totake whatever it is that interests

them and to build along those lines.”Brooklyn Robot Foundry in

March opened a second location, inTriBeCa, and aims to launch multi-ple branches across the country.Theprofitable firm predicts $600,000 inrevenue in 2014 and estimates 20%growth in 2015.Summer camp gen-erates three-quarters of its revenue.

Going nationalNot far away, in Cobble Hill,

Brooklyn, Mike Fischthal, a formerdesigner at Nickelodeon, is chief ex-ecutive of the year-old Pixel Acade-my, which focuses on computer pro-gramming, video-game design and3-D printing. The profitable busi-ness charges a monthly membershipfee of $25 per child, plus $35 a visit.Mr. Fischthal, who expects revenueto double to $1 million next year,plans an Upper West Side outpost.

“We have seen a huge demandfrom people all over the country toopen additional locations,” he said.

More competition is coming. JonSantiago, an MIT graduate, co-founded HTINK, a cooperativelyowned business that holds classes indigital fabrication, electronics andcomputer programming at museums,libraries and schools across the city.

He spun off an LLC,called the Mak-ery, which in two years has built 10successful pop-up spaces devoted totech learning. He plans to soon opena permanent location in Brooklyn.

“We view technology as theblending of atoms and bits, and weencourage students to test theirideas,” said Hsing Wei, a founder ofthe Makery.That’s a valuable skill inany STEM career. �

Classes offer new take on tech

I LOVETHE AVENUE:

Share using #LovetheAvenue | Follow us @AveofAmericasNYLovetheAvenue.com | [email protected]

CENTRAL PARK NEARBY

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Families line up forfast-growing programsin areas from roboticsto video-game design

MASTERMIND: Former painter and computerteacher Laura Allen created RoboFun toeducate children about technology.

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To sign up for Crain’sSMALL BUSINESS newsletter, go to www.crainsnewyork.com/smallbiz.

based nonprofit Families for ExcellentSchools, recently called for the groupto release its donor list so “the pub-lic can judge what interests are atplay.” The group’s spending thisspring helped foil the mayor’s plansin a high-profile fight over charterschools’ funding and sharing spacewith traditional public schools.

Lobbying records, however,show how Families for ExcellentSchools was able to shield its donors’names. Even its critics acknowledgethe group has found a way aroundthe 2011 law.

“These guys have invented the‘hedge-fund loophole’ in the dark-money world of [Gov.] AndrewCuomo’s Albany,”charged Billy Easton,executive director of the Alliance forQuality Education, a nonprofit backedby the statewide teachers’ union,which has been warring withcharter-school proponents and thegovernor.

Mr. Easton’s comment referredto hedge-fund executives who havedonated to the governor’s campaignand to charter-school causes. ACuomo official once griped that Mr.Easton’s group does not disclose itsdonors, either, but it does now, perthe 2011 law.

David Grandeau, an attorney forFamilies for Excellent Schools, said,“FES has correctly disclosed itsspending in New York state, and weare confident that our activity iswithin the limitations allowable.”

Despite the group’s extensivelobbying as defined by state law, andInternal Revenue Service restric-tions on how much money tax-exempt organizations can spend onlobbying, donations to it have beenpotentially tax-deductible, accord-ing to Mr. Grandeau, who was onceNew York’s top lobbying regulator.

Founded several years ago bybusiness executives including fourWall Street players, Families forExcellent Schools has two compo-nents: an apolitical 501(c)(3) tax-exempt nonprofit and a politics-

focused 501(c)(4).The group’s 2012tax returns reflect a heavy overlapbetween the staffs of the two enti-

ties, which share an office suite. It’sa common arrangement for interestgroups, such as environmental or

reproductive-rights organizations.New York’s 2011 ethics law re-

quires issue-oriented nonprofits thatspend more than $50,000 a year onlobbying to disclose sources of fundsof more than $5,000. After theSupreme Court’s Citizens Uniteddecision allowing unlimited expen-ditures by independent groups, thelaw was intended to make public thenames of big donors seeking to influ-ence state government.

But the bulk of Families for Ex-cellent Schools’ spending is not byits political arm but rather its501(c)(3)—which does not have todisclose donors under state law. Au-thors of the law might have assumed

When the state Legislature revamped New York’slobbying laws in 2011, the reforms were meant toshine a brighter light on mega-donors seeking to

influence the government. Yet this year’s biggest lobbyingspender—a pro-charter-school group that reported almost $6 million in New York state lobbying expenditures throughAugust—hasn’t had to reveal a single benefactor.

Mayor Bill de Blasio, the leading adversary of Manhattan-

MANHATTAN

FOR INFORMATION ON HOW LEE & ASSOCIATES CAN SATISFY YOUR REAL ESTATE NEEDSPLEASE CONTACT:

JAMES R. WACHT, PRESIDENT212.776.1202

[email protected]

THE MATTRESS IN WHICH THE REST OF THE WORLDSTUFFS THEIR MONEY

Group is visible, but not its donors

QUOTE OF THEWEEK: ‘I would say I’m verylikable. They don’t know me’

—Gov. Andrew Cuomo, whenasked by The New York Timesabout pundits who say he has

a likability problem


A RALLY this month organized by Families for Excellent Schools called for education reform.

See GROUP on Page 40

ap im

ages

THEINSIDERby Chris Bragg

Hall of Fame2014

Join Crain’s as we celebrate this year’s inductees

representing the city’s business community at its best.

monday, november 10, 2014cipriani 42nd street110 east 42nd street

12:00 p.m. – 12:30 p.m.Registration and Networking Reception

12:30 p.m. – 2:00 p.m.Luncheon and Awards Ceremony

Early Bird Pricing: $250 for individual ticket(s). $2,500 for table(s) of ten.

For more information, contact the Events Hotline at 212-210-0739 or email [email protected]. For sponsorship and journal advertising opportunities, contact Joanna Harp at 212-210-0278 or [email protected].

Register Todaycrainsnewyork.com/events-halloffame2014

Space is limited. You must be pre-registered to attend this event. No refunds permitted.

MEET ALL 2014 HONOREES ATOUR INAUGURAL CELEBRATORY LUNCHEON

Karen Brooks HopkinsPresident

Brooklyn Academy of Music

Danny MeyerChief Executive Officer

Union Square Hospitality Group

Jonathan TischChairman

Loews Hotels

Diane von FurstenbergFounder & Co-Chairman

Diane von Furstenberg

Dick ParsonsSenior Advisor

Providence Equity Partners

Steve RossChairman and Founder

Related Companies

Henry KravisCo-Chairman & Co-Chief Executive Officer

Kohlberg Kravis Roberts & Co.

Terry LundgrenChairman & CEO

Macy’s Inc.

Kenneth ChenaultChairman & CEO

American Express Company

Lifetime AchievementMichael Bloomberg

Chief Executive Officer, Bloomberg L.P.

His Hollywood endingUnorthodox move helps Alan’s Alley Video survive

Alan Sklar avoided the fate of most movie-rental business owners when he moved his shopthis summer to, of all places, a cramped space onthe fifth floor of a Chelsea office building. ¶“I’m not totally convinced that this will work,”said the founder of Alan’s Alley Video, whichhad occupied a nearby storefront for 26 years.“But I needed someplace to go.” ¶ He hadsimilar reservations when he signed his firstlease in Chelsea in 1988—“I went catatonic”—but despite shifting consumer habits over theyears, he kept his rental business afloat with amore lucrative corporate business. Among hisclients are advertising agencies like Ogilvy &Mather and McCann-Erickson, and suchtelevision programs as the Today show and TheDaily Show With Jon Stewart. His first corporatecustomer requested a list of movies withbathroom scenes so she could pitch a

commercial to Kohler. ¶ “I came up with about40 movies, she created an account, and away wewent,” he said. ¶ More recently, however, Mr.Sklar has supported the business with credit-card advances, waiting for the holiday push tocatch up on rent payments. ¶ He broke his oldlease when his landlord allowed him to leavewithout penalty. After selling some of his bestinventory in a going-out-of-business sale, hefound that he could afford a nearby location. ¶Mr. Sklar expects that his corporate accountswill cover rent—about $3,000 a month,compared with $12,500 previously—but he stillhopes longtime customers visit him in the officebuilding. Their outpouring of support—andtears—may be a positive sign. ¶ “I didn’t realizehow much people care,” he said. “I’moverwhelmed.”

—ken christensen

GOTHAM GIGS

‘I didn’trealizehow muchpeoplecare’

Ad Council: LisaSherman, 56, joinedthe nonprofit aspresident and chiefexecutive. She waspreviously executivevice president andgeneral manager ofLogoTV.

Mercury Media: Andrew McLean, 44,joined the performance marketingagency as chief executive. He waspreviously managing partner atZonza.Asphalt Green: Jeffrey H. Ward, 58,joined the nonprofit as chief programofficer. He was previously a principalat Casco Bay Associates.Baker & McKenzie: Peter May, 53,joined the law firm as global chief tal-ent officer. He was previously chiefhuman-resources officer at DeloitteTouche Tohmatsu Ltd.Local Initiatives Support Corp.: SamMarks, 42, joined the national non-profit as executive director of its NewYork City program. He was previous-ly vice president of Deutsche BankAmericas Foundation and the bank’sglobal social-finance group.

Research Alliance forNew York CitySchools: Saskia LevyThompson, 38,joined the public-school research cen-ter as deputy direc-tor. She waspreviously special

adviser to the chancellor at the NewYork City Department of Education.People.com: Will Lee, 41, will join theTime Inc. online title as editor, effec-tive Oct. 20. He was previously vicepresident of digital content and pro-gramming at The Hollywood Reporter.American Express: Neal Sample, 40,was promoted to president of enter-prise growth. He was previously chiefinformation officer and chief market-ing technologist for enterprisegrowth.Makeable: Brent Pruner, 46, joinedthe business, product and brand inno-vation company as experience direc-tor. He was previously experiencedirector at Pruner Creative, which hefounded.Emily Khalil, 35, joined as projectmanagement director. She was previ-ously director of project managementat the Wonderfactory.BankMobile: Dawn Melesko, 34, joinedthe division of Customers Bank asdirector of social media. She was pre-viously vice president of social mediaat Webster Bank.

First Nationwide TitleAgency: DawnPereyo, 46, joinedthe boutique agencyas director of titleoperations. She waspreviously directorof agency opera-tions and director of

client services at Valley Stream.Andrew Ruppert, 31, joined as seniortitle officer. He was previouslynational title officer at Sutton LandTitle Agency.CBRE Group Inc.: Charles Maggio, 52,joined the commercial real estate

EXECUTIVE MOVES

B U S I N E S S

PEOPLE

See EXECUTIVE MOVES on Page 12

61.7%Portion of NY-area

jobs created by smallbusinesses in ’12,

up from 54.8% in ’02Source: Crain’s analysis of U.S. Census Bureau data

LOOKING AT THEBIG PICTURE: Filmmaven Alan Sklarrelocated hisbusiness from astorefront to a fifth-floor office to save on rent.


buck

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services and investment firm as manag-ing director in the health care group.He was previously managing director atJones Lang LaSalle.Resources Global Professionals: KennethFoley, 51, was promoted to managingdirector at the professional servicesfirm. He was previously regional direc-tor of recruiting.BBDO: Paul Roebuck,40, joined theadvertising-agencynetwork as executivevice president andworldwide seniorbusiness director, anewly created posi-tion. He was previous-ly chief executive at Saatchi & SaatchiSingapore and Malaysia.Whistle Sports Network: Deirdre Lester,39, joined the sports entertainment net-work as executive vice president. Shewas previously vice president at MLBAdvanced Media.Donato Media: Steven Rice, 41, was pro-moted to executive vice president ofmarketing and digital engagement atthe communications firm. He was pre-viously senior vice president.Magnet Media: Danielle Dardashti, 44,joined the production company andinteractive marketing services firm assenior vice president of business devel-opment. She was previously senior vicepresident of sales and marketing at IKACollective.NYC & Company: Makiko Matsuda Healy,44, was promoted to senior vice presi-dent of global tourism development atthe marketing, tourism and partnershiporganization for New York City. Shewas previously vice president of tourismdevelopment.Lutheran HealthCare: Andrew Rein, 50,joined the Brooklyn health care net-work as senior vice president of strategyand system transformation. He was pre-viously associate director for policy atthe Centers for Disease Control andPrevention.Brown Harris Stevens ResidentialManagement: Michael Donuk, 47, joinedthe luxury residential real estate firm asvice president and managing director.He was previously portfolio director atRose Associates.Empire State Realty Trust: Keith Cody,40, joined as vice president of leasing.He was previously senior vice presidentat CBRE Group Inc.

Lauren Muss, 47,joined as a licensedassociate real estatebroker. She was previously seniorvice president atCorcoran.DLA Piper: SavariaHarris, 33, joined the

law firm as a partner. She was previous-ly a partner at Kirkland & Ellis.Katten Muchin Rosenman: DavidKravitz, 34, was promoted to partner atthe law firm. He was previously anassociate.Christine Murphy, 37, was promoted to partner. She was previously an associate.Jonathan Weiner, 34, was promoted topartner. He was previously an associate.GQ: Lindy West, 32, joined the CondéNast men’s magazine as a culture writerfor GQ.com. She was previously a staffwriter at Jezebel.com.

—nazish dholakia

CORPORATE LADDER

DIGITAL MEDIA EXEC EYES INTERNATIONAL MARKETSDIGITAL MEDIA CONSULTANCY Omnigon’s new chief commercial officer, David Nugent, 50, has his sights set on globalexpansion. This year, the company opened an office in London and plans to debut in Los Angeles and another still-undisclosed city. The Manhattan-based firm also has offices in Toronto and Kiev, Ukraine.

Mr. Nugent, a founding partner at the six-year-old company, hopes to expand its roster of entertainment-industryclients and its sports customers, which include NASCAR, Fox Sports, the NFL and Britain’s Manchester City footballclub. It has averaged 50% year-over-year growth in revenue since 2008.

“When we are doing our best, we are an extension of the company we’re partnering with,” Mr. Nugentsaid. Previously senior vice president of business development, Mr. Nugent will shift his focus fromtactical sales to strategic growth in the newly created position.

“[David] embodies how we want Omnigon to be perceived,” said Chief Executive Igor Ulis.“We’re not looking to be a vendor but a true partner. He is building an organization that embodiesthat.”

Continued from Page 10

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EXECUTIVE PROMOTIONS

The fastest way to get an announcement intoCrain’s is to submit online. Fill out the form at www.crainsnewyork.com/section/executive_moves. The Executive Moves columnis also available online.


EXECUTIVE MOVES

—NAZISH DHOLAKIA

IN THE BOROUGHS MANHATTAN

Corn Exchange Building hit its ownmilestone two weeks ago. It camewhen work crews topped out theseven-story building, which hadstood vacant for decades and haddeteriorated to little more than atwo-story shell.

In another hopeful sign,in July thecity selected WXY Architecture +Urban Design to draw up plans to re-make the streetscape at the junctureof East 125th Street and Park Av-enue, and along Park Avenue oneblock on either side of that street.That work, which will create publicspace and beautify the street, is ex-pected to be finished by the end ofnext year.

“For years, it was like having a bigkid and a small kid on either end ofa seesaw—all the development andprogress was on West 125th Street,everything was weighted on thatside,” said Blondel Pinnock,a seniorvice president at Harlem-basedCarver Federal Savings Bank, whochairs the 125th Street BusinessImprovement District. “Now theEast Side is really catching up.”

The newest projects illustratewhat local boosters hope will be thedual nature of East 125th Street’s re-vival. While Mr. Eichner’s project

will cater to East Harlem’s growingpopularity as a place to live, the CornExchange is betting that more peo-ple will want to work there as well.The latter building will include about25,000 square feet of office space,ac-cording to Adrian Berger, presidentof Corner Commercial Real Estate,which is leasing the space for thebuilding’s developer, Artimus Con-struction.The brokerage firm is leas-ing the commercial space along with8,000 square feet of store space on theground and second floors.

Mr. Berger said he had alreadyreceived queries from nonprofit andeducation tenants as well as techoutfits drawn by the area’s low—byManhattan standards—office rents.Asking rents run in the $30s persquare foot, and there are good tran-sit connections, including the 4, 5and 6 subway stop a block east onLexington Avenue.

Commuter heaven“There are a lot of people com-

muting from Westchester, Con-necticut and upstate on Metro-North who would be very happy toget off at 125th Street instead of go-ing downtown,” Mr. Berger said.

Developer Gary Barnett, whoearlier this year purchased the one-

story, block-long Pathmark on East125th Street and Lexington Avenuefor $39 million,is another example ofthose placing big bets on an econom-ic revival of the thoroughfare and itsEast Harlem surroundings.

That kind of interest has inspiredthe Kessner family to put the 36,000-square-foot commercial building itowns across the street from the Path-mark on the market for $29 mil-lion—more than seven times whatthey paid for it a decade ago.Adelaide

Polsinelli, a brokerwith Eastern Consoli-dated who is market-ing the property forsale, said that its vacantoffice floors havedrawn interest as a lo-cation for a school orpreschool because it’s agreat location for par-ents who want to dropoff their children ontheir commute fromupper Manhattan orthe suburbs north ofthe city.

The money nowbeginning to courseinto East Harlem, andplans for far more,havesome residents worriedthat in the process ofreplacing some long-time eyesores withgleaming new build-

ings the neighborhood will lose someof its distinctive culture, as well as itsaffordability for existing residents.

“The biggest challenge is makingsure the neighborhood keeps its cul-tural characteristics and maintainsopportunities for the folks who haveweathered the storm here, [so theycan] stick around and enjoy all thepositive things that have now hap-pened in this neighborhood,” saidMs. Pinnock. “But I think that thecommunity groups here have been

working to ensure that balance andmake sure we don’t give up too muchfor the sake of progress.”

Cultural preservationHer bank has been a part of sever-

al recent deals done to help preservethe area’s culture, including financingthe renovation of the SchomburgCenter for Research in Black Cul-ture, which has a unique collectionthat features work from luminaries ofblack history including MartinLuther King Jr. She said her bankwould like to be a part of the financ-ing to convert a firehouse betweenPark and Lexington avenues on East125th Street into a Caribbean cultur-al center.

Matthew Washington, the chairof the area’s Community Board 11and an executive at the Durst Orga-nization, said he is asking the city toencourage light-manufacturing fa-cilities and other commercial usesalong Park Avenue on either side ofthe elevated Metro-North tracks inEast Harlem.Those kinds of devel-opments could bring well-payingjobs. In a positive sign for business-es already in the area, Mr. Washing-ton pointed to the creation of theEast Harlem Community Alliance,a collection of about 60 businessesand organizations that have pledgedto source labor, as well as goods andservices, from each other as much asthey can. �

East Harlem on rise



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GRANULAR GAIN: After decades of decay, the landmarkedCorn Exchange on East 125th Street is finally being rebuilt.

OPINION

Mayor Bill de Blasio announced lastweek that he would spend $130million to rebuild 35 small parksand playgrounds and improve 55others in areas with high povertyand dense, growing populations.These were chosen from a large

group of needy candidates: 215 sites that have receivedminimal funding in the past 20 years.

The new program—funded by $50 million from Mr. deBlasio and $80 million budgeted by the Bloombergadministration—is certainly welcome. But to put it inperspective, the Parks Department said the 215 deprivedparks need a total of $1 billion. Many more of the agency’s1,000 playgrounds, 800 athletic fields, 600 tennis courts, 66swimming pools, 48 recreation centers, 17 nature centers, 13golf courses and 14 miles of beaches could use work, too.

These facilities, despite their shortcomings, are beloved bymany New Yorkers. Not so the agency that runs them, whichstruggles to staff and maintain its 29,000 acres and has areputation for dreadful project management.

To be fair, the Parks Department has seen its fundingdwindle since the days when recreation coordinators werefixtures at its playgrounds and fields. In the 1960s, parks gota robust 1.5% of the city budget. In the 1980s, it was halfthat.This year, the department’s $413 million in operatingfunds is less than 0.6% of the total city budget.

But the agency must do better with what it gets. Some

City Council members are reluctant to fund parks projectsbecause they take longer and cost more than they should.Mitchell Silver, the new parks commissioner, is about tounveil a plan to standardize and streamline this process.Thedepartment will do advance site inspections and coordinatewith other agencies to avoid surprises after projects arefunded, and will condense the months-long scoping periodand design review.These are promising reforms.

In unveiling his program, Mr. de Blasio said hispredecessors ignored playgrounds in poor areas.That wasneedlessly divisive and probably inaccurate. On the positive

side, he is building acommunity-supportcomponent for thenewly funded parks andasking establishedconservancies tovolunteer theirexpertise rather thanconfiscating 20% oftheir revenue, as he’despoused previously.

The Parks Department, meanwhile, is beginning toexplore alternative revenue schemes—including public-private partnerships—that have helped other cities’ parks.Some outside-the-sandbox thinking is more likely toproduce results than begging City Hall for funding.The1960s aren’t coming back anytime soon.

Think outside the sandbox

Pleading forpublic fundswon’t be enoughto save parks


VICIOUS CYCLEGlenn Coleman’s generaltheme that the city must workto prevent drivers andbicyclists from killing pedestri-ans is correct (Editor’s Note,Sept. 29). But skyways are notthe solution. Pedestrians wantto walk on the sidewalks,where the action, storefronts,building doors and subwayentrances are.

One partial solution: Everycyclist 18 and older should beregistered, and every bicycleshould have a license plate.That would facilitate the en-forcement of traffic laws.

As for drivers of four-wheeled vehicles: In accidentsinvolving a pedestrian who isin the crosswalk and obeyingthe traffic signal, the drivershall be assumed criminallynegligent and charged untilproven otherwise. The pedes-trian following the rules shallbe presumed innocent.

—suzanne wertzManhattan

TWO VIEWS ON GONDOLASIt’s great to see some new mass-transit ideas, especially onesthat connect underserved areasof the outer boroughs (“Thesky’s the limit for commuters,”Sept. 22).The Brooklyn NavyYard has been growing foryears, with some of the fewgood manufacturing jobs in thecity, but is served only by buslines.The towers being builtalong the East River in Brook-lyn and Queens are barelyserved by mass transit at all.

If this gondola system canreally be built, it would be afraction of the cost of subways,and if it’s built privately or aspart of a public-private part-nership, even better. Separate-ly, the MTA should investigatereopening the mothballedNavy Yard subway station. Itseems like a no-brainer.

—mark londonForest Hills, Queens

Another multibillion-dollar,pie-in-the-sky MTA project

paid for by all transit riders butintended for the convenienceof Manhattanites while pre-ventive maintenance of rottingstructures outside Manhattancontinues to be neglected.

—miriam michelJackson Heights, Queens

RENT-REG REALITYSaying that Democratssupport “pro-tenant”regulations is only partly true(“REBNY jumps into Senatebattle,” CrainsNew York.com).There are 2.5 million NewYork City residents in rent-stabilized housing, yet thereare 8 million total residents. Soto be clear, the Democrats seeklaws that favor rent-stabilizedtenants, not all tenants. Morethan 90% of economists agreethat these rent-stabilizationlaws hurt 5.5 million residents.

The situation isn’t that Re-publicans love landlords andDemocrats love tenants.

—douglas petersonHarlem

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several years. Traders and invest-ment bankers would have an incen-tive to make sure the risks they tookwere reasonable and wouldn’t bringdown their firms (or the rest of us)in the future.

It isn’t clear whether stockbonuses have curtailed risk,but theycertainly have helped New York—especially state and city budgets—because they are smoothing WallStreet compensation and the taxescollected on it.

Last week’s annual assessment ofthe securities industry from the statecomptroller’s office (required read-ing for anyone interested in the in-dustry or the city’s economy) explainshow this works. Almost $27 billionin bonuses went out last year—15%more than in 2012 and the third-highest amount ever. But that figureincluded deferred payments fromprevious years.The comptroller pre-

dicts another rise this year, withbonuses again supplemented by thedeferred compensation.

The impact of this change can beseen in other ways. The averageWall Street salary has remained un-changed for the past three years, atabout $360,000. Similarly, its con-

tribution to state and city tax coffershas stabilized at about 20% and 7%,respectively.

What makes this interesting isthat Wall Street profits have beenerratic, to say the least, hitting arecord $60 billion in 2009 andplunging to almost nothing in 2011.Earnings fell 30% last year, and thecomptroller says another drop islikely this year.

If profits continue to drop, firmswill be forced to cut those bonuses atsome point, but even then, all thatdeferred comp means total compen-sation—and tax payments—will re-main high.

The comptroller’s report empha-sizes that Wall Street’s glass is morethan half-full: “Although smallerand in transition, the securities in-dustry remains profitable and wellcompensated … a major contributorto state and city tax revenues … andan important component of theeconomy.”

I see the glass as half-empty, be-cause so many regulations and high-er capital requirements are still to beimplemented. But even if I am right,the decline in Wall Street’s impact onNew York will take place over manyyears. And that, at least, is good.

Everyone intothe bonus pool

When the financial crisis almost destroyed theeconomy, everyone from regulators to WallStreet CEOs vowed it would never happenagain.And one way they tried to ensure thatwas to change the way bonuses are paid.

No longer would millions of dollars in cash be awarded basedon the previous year’s profits.Instead,most of the money wouldbe given in the form of restricted stock, which can’t be sold for

GREG DAVID Industries served: Financial Services . Manufacturing & Distribution . Technology

. Retail . Construction . Architecture & Engineering Real Estate . Healthcare . Transportation & Shipping

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head injuries.The family of a Mont-clair High School student who diedin 2008 got a $2.8 million settle-ment last year from the MontclairBoard of Education.

The deaths may be the tip of theiceberg of football-related problems.Many of my friends at Cornell wereon the football team in the late 1960sand early ’70s.One of them blew outhis knee during freshman year andwalked on crutches for weeks aftersurgery. This December, he will un-dergo knee-replacement surgery.

“It catches up with you later inlife,”he said,adding that new equip-ment and the intense conditioningof players that began in his collegeyears have contributed to the in-

crease in traumatic injuries anddeaths.“The players are very big andvery fast,and they believe the equip-ment will protect them from seriousinjury. In the old days, when theyused those leather helmets, it wasmore like a rugby match. Today, Icringe when I watch the hits,partic-ularly on kickoffs and punts.”

Another friend played all fouryears at Cornell. He has had 17 or-thopedic surgeries. The Ivy Leagueis not the NFL or the Big Ten or theSoutheastern Conference, but bothfriends live with serious disabilities.

And both are dads who discour-aged their sons from playing football.

“I think the entire culture offootball is detrimental to our socie-

ty,” said the four-year player. “Thereare many elements of football cul-ture that I find destructive and de-bilitating, not only physically butalso psychologically.”

I played football my freshmanyear in high school in southeasternOhio.Only six freshmen tried out forthe team,so we were put with the var-sity. We were little more than block-ing and tackling dummies for the up-perclassmen. The coach seemed totake a sadistic delight in our pain. Iquit and joined the golf team.

I follow the New York teams andenjoy watching football on TV. It isclear that something must be doneto prevent the serious injuries anddeaths that we read about too often.

Given the value of the game tothe team owners and the NFL, andto colleges and universities, I don’treally see how it can be dialed backvoluntarily. It seems to me thatchange will only come from liabilitylawsuits. That means the toll of in-jury and death will continue to rise.

The four-year player from Cor-nell, now recovering from his latestknee replacement, said that, in ret-rospect, “I wish I had played on thegolf team, or maybe the beach vol-leyball team, or the dart team.”

Contact sports bring benefits toplayers, fans, schools and pro teams,but I hope the days of players who “gettheir bell rung”being told to “shake itoff and get back in there” are ending.

STEVE HINDY

Football brutality:When is it enough?

Three high-school football players have died thisyear playing the game that—let’s face it—hasprobably eclipsed baseball as the national pastime.The NFL is sports’ most lucrative franchise, andcolleges and universities reap millions from their

football teams’ ticket sales and media rights.But something has gone wrong with the game.The NFL and

the NCAA both face lawsuits from former players claiming

BONUS BONANZAWall Street’s key data for 2013

Profits -30%

Bonuses +15%

Avg. compensation -1%

Source: New York state comptroller


Cantor Commercial Real Estate

POWER BROKERS:Anthony Orso (left) andMichael Lehrman aim todominate the commercialreal estate market.

How it grew: Since Cantor Commercial Real Estate wasfounded in 2010, it has closed $24 billion worth ofloans, become a leading issuer of mortgage-backedsecurities and reached the upper echelons ofcommercial real estate financing in the country.

CCRE, which is capitalized through partnershipswith Cantor Fitzgerald and CIM Group, nowoperates 15 offices nationwide with more than 300

employees, triple the number of staff it had a year ago, when it wasnamed No. 5 on Crain’s Fast 50.

The company’s extensive network of—and close relationshipswith—borrowers, brokers and investors in the real estate industryhas fueled much of its growth. Its launch just as the country wasemerging from the Great Recession also proved fortuitous,allowing it to put together a top-tier team at a time when many of its competitorsweren’t hiring.

“We’ve created a national footprint with boots on the ground across the country,”said co-CEO Anthony Orso, who co-founded the firm with former Credit Suissecolleague Michael Lehrman. “This strategy has paid off for us, because it hasallowed us to expand in markets where our competitors have little presence.”

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—bruce w. fraser

Website:ccre.comTwitter: NoneCo-CEOs and co-founders:Anthony Orso,Michael LehrmanHeadquarters:ManhattanThree-year growthrate: 24,591%*2013 revenue:$226 million*Profitable? YesLocal employees:100Total employees:300*Crain’s estimate

What it does: Originates, distributes and services commercial real estate and government agency loans for multifamily properties

1GRABBING A SPOT on Crain’s Fast 50 list in the recent past meantnavigating a grueling, obstacle-course economy. Not so anymore.

With many markets looking bright, more city firms are taking a straightpath to growth and racking up giant revenue gains. This year, every firm onour annual list of the fastest-growing privately held and publicly tradedfirms had revenue growth above 150% from 2010 to 2013. The listranks New York-area companies by revenue growth in that same period.

Some honorees are in industries such as real estate and constructionthat, after some tough postrecession years, have been making up for losttime. Take Cantor Commercial Real Estate. Aggressively focused onnational growth, the commercial real estate finance firm rocketed to firstplace, with an estimated 24,591% three-year increase in revenue.

With venture capitalists flocking, the advertising technology industry isalso sizzling—with 12 firms making the list. By helping marketers place adsin carefully chosen e-newsletters, No. 2, LiveIntent, grew 20,900%.

To make the Fast 50, firms needed four years in business and annualrevenue of $10 million or more in 2013. We made some exceptions(noted). For firms with very low 2010 revenue, we used two-year growth.

Accounting firm Anchin Block & Anchin read the financialdocuments submitted by the companies to verify the accuracy oftheir revenue and, when possible, their profitability.

Most firms can’t travel at 95 mph forever, and some may overheat. Fornow, however, the city’s most aggressive CEOs are stepping on the gas.

—ELAINE POFELDT

NY’s fastest companies

CAN’T GET ENOUGH OF THE FAST 50? Hear more about the winners at CrainsNewYork.com/podcasts. View videos at CrainsNewYork.com/video and visit CrainsNewYork.com/Fast50.

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How it grew: After earninghis stripes as a software-development engineer at

digital-advertising powerhouseDoubleClick, Eliot Horowitzjoined forces in 2007 with hisformer boss, DoubleClickfounder and CEO DwightMerriman, to launch a newventure, MongoDB.

The firm, now led byveteran investor Dev Ittycheria,offers an open-source databaseused by companies of all sizesto manage content. Offering aclass of data-managementtechnology designed to bescalable, the database caught onquickly and has become one ofthe most widely used in theworld.CustomersincludeCisco, EA,eBay,LexisNexisand MetLife.

Given therobustmarket fordatabasesoftwaremanagement,ViceChairmanand formerCEO MaxSchireson said MongoDB iscontinuing to focus on growth.“I think in five years we’ll bebigger, but we’ll still be in thesame market and solving thesame basic problems forcustomers,” he said.

—tripp whetsell

How it grew: With 700,000 people expectedto test their mettle in its races this year,Tough Mudder is raising the bar for them—

and for itself. “We’ve focused on innovating newobstacles,” said Ben Johnson,Tough Mudder’shead of communications.

Besides dodging hazards like fire and liveelectrical wires, participants now have to navigatethe Pyramid Scheme, a tall, mud-covered, inclinedwall.This punishing new hurdle is among fivedesigned by Tough Mudder’s team of fivespecialists, who in the past have worked on eventslike Formula 1 auto races, the London andVancouver Olympics, and the Governors BallNYC Music Festival.

Finding a way around Tough Mudder’s obstacles requires moreteamwork than in the past—successfully completing them is mucheasier these days with the help of more than one person—andhundreds of competitors now show up looking for a group to join, Mr.Johnson said.

The firm has also amped up its offerings for repeat contestants,adding a separate obstacle loop at each event for the 25% ofparticipants who have run Tough Mudders in the past.This “allows usto get feedback on what they’re most involved in,” said Mr. Johnson.

With its industry booming,Tough Mudder—which made Crain’sBest Places to Work list in 2013, and whose CEO, Will Dean, landedon the Crain’s 40 Under 40 list in 2012—doesn’t seem likely to hit thewall anytime soon. According to Running USA, the number ofcontestants who finish nontraditional running events exploded fromthe low six figures in 2009 to roughly 4 million last year.

Staying in front of the trend,Tough Mudder has expanded this yearinto Tennessee, Maine and Utah and, internationally, to Ireland, NewZealand and Canada.

—maggie overfelt

How it grew: It’s a predicament many a mobile-app developer faces: how to monetize earningsand achieve maximize distribution.

Responding to this dilemma, in 2010 Israelientrepreneur Gil Dudkiewicz created SmartApp, auser-friendly software-development kit that enablesdevelopers to integrate a mobile search engine add-on

directly intotheir app.Partnering withmore than100,000applications, thetechnology iscurrentlyavailable for

Android apps and has generated more than 1 billiondownloads of its tools for developers to date.

StartApp continues to grow by teaming up withmore developers, allowing it to offer advertisers morethan 6 billion monthly ad impressions worldwide,including ads in a 3-D format.

How it grew: NeoStem’s rapid growth hasclosely paralleled a shift in medicine over thepast decade, in which alternative treatments

known as cellular therapy are being developed totackle cancer, autoimmune disorders andcardiovascular disease. In these treatments, livingcells are typically injected into the patient tostimulate the natural healing process.

The firm, founded in 2006, has grown largelythrough a series of acquisitions engineered by CEODr. Robin L. Smith and her team. After gettinglisted on the Nasdaq in 2013, NeoStem made a keyacquisition, California Stem Cell, which, accordingto Ram Selvaraju, managing director and head ofhealth care equity research at Aegis Capital, allowedthe firm to enter the cancer vaccine space for thefirst time and brought it an asset in the final stage of clinical testing.“They didn’t have anything in Phase 3 testing before this,” he said.

Such acquisitions have helped NeoStem play a greater role in thecellular therapy industry, despite stiff competition. Rivals range fromsmaller companies in thestem-cell space—including Athersys,Cytori Therapeutics andMesoblast—to establishedpharmaceutical companiessuch as AstraZeneca,Merck and Bristol-MyersSquibb.

“The key drivers of ourgrowth relate to thegeneration of late-stageclinical data and thediversity of ourplatforms,” said Dr.Smith.

Thanks to its growthstrategy, NeoStem showsno signs of slowing down.“They have plenty of cashnow to make furtheracquisitions,” Mr.Selvaraju noted.

—bruce w. fraser


StartApp

LiveIntent

What it does: Runs an online mobileadvertising platform

Website:startapp.comTwitter: @StartAppCEO: GilDudkiewiczHeadquarters:ManhattanTwo-year growthrate: 11,737% 2013 revenue:$19.9 millionProfitable? YesLocal employees: 7Total employees:58

Website:toughmudder.comTwitter:@toughmudderPrincipal: Will Dean, CEOHeadquarters:BrooklynThree-year growthrate: 4,738%2013 revenue:$107.9 millionProfitable? YesNYC employees:123Total employees:143

What it does: Offers an online databasemanagement platform

MongoDB

What it does: Develops therapiesusing an individual’s own cells to prevent, treat or cure diseases

Website:neostem.comTwitter:@NeoStemIncPrincipal: Dr.Robin L. Smith,chairman and CEOHeadquarters:ManhattanThree-year growthrate: 7,998%2013 revenue:$14.7 millionProfitable? NoLocal employees:32Total employees:156

Website:mongodb.comTwitter: @mongodbCEO: Dev IttycheriaHeadquarters:ManhattanThree-year growthrate: 4,033%*2013 revenue: $62 million* Profitable?UndisclosedLocal employees:200Total employees:400*Crain’s estimate

GATEKEEPER: MattKeiser helps advertiserspenetrate email in-boxes.

NeoStem

How it grew: LiveIntent makes it easier formarketers and publishers to place ads in emailnewsletters. It acts as an intermediary, with a

technology platform that places promos in missivessent by more than 600 publishers, as well as in aclient’s own newsletter. And the firm’s real-time adexchange enables split-second decisions about theright ad to place, based on such factors as the reader’slocation and the time a newsletter is sent. The result isa way for advertisers to reach a more targeted audienceand for publishers to turn email newsletters into more-efficient revenue generators.

Access to an extensive inventory of advertisingspace has helped LiveIntent grow since it was foundedin 2009. “Nobody has the inventory that LiveIntenthas,” said customer Amy Bartle, director of media anddigital marketing for La Quinta Management.

Investors have taken note: The company has raised $32.6 million inthree rounds of venture-capital financing.

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—anne field

Website:liveintent.comTwitter handle:@LiveIntentPrincipals: Matt Keiser, CEO; Dave Hendricks,presidentHeadquarters:ManhattanThree-year growthrate: 20,900%2013 revenue: $21 millionProfitable? NoLocal employees:115Total employees:125

What it does: Offers emailadvertising services

Tough MudderWhat it does: Organizes obstacle-course races focused onteam-building

—tripp whetsell

HEALER: Dr. RobinSmith is testing a cancervaccine at NeoStem.

‘Nobody hasthe inventorythat LiveIntenthas’

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How it grew: Tapad’s timing couldn’t have beenbetter when it released Unify, a platform thathelps online advertisers track and target

consumers across multiple gadgets.The technology hit the market shortly after the first

iPad in 2010. “The idea was born out of the fact that wesaw a huge change in human behavior in which peoplewere constantly shifting between their devices at thesame time,” said founder and CEO Are Traasdahl, whopreviously founded the pre-iPhone mobile app storeThumbplay, which grew to $100 million in sales in lessthan three years. Mr.Traasdahl appeared on Crain’s listof People to Watch in Silicon Alley in 2012.

Focusing its efforts on directly working with first-person sources ofdata,Tapad has followed a similar trajectory. It has plenty of cash in itscoffers.The four-year-old firm has raised $15.3 million in venture capitalin three rounds from VCs including FirstMark Capital and BatteryVentures, and has attracted backers including Brian O’Kelley, co-founderand CEO of AppNexus, another 2014 Fast 50 company.

So far,Tapad has worked with more than 200 consumer brands,including American Airlines, Audi and Dell. Meanwhile, the company isaggressively expanding overseas. With outposts established in the U.K. andGermany, Mr.Traasdahl is eyeing Asia next.

How it grew: Hidden in Parsippany, N.J.,Marketsmith has emerged in the past sixyears as a powerhouse consulting firm to

such global names as Amazon, Comcast and theMetropolitan Museum of Art. Its secret: an algorithmand a group of analysts offering real-time data aboutcompanies’ media purchases. Marketsmith uses aproprietary software platform, iPredictus, to analyzecompanies’ data across channels to discover which areperforming best.

“We spend $200 million a year on television,” saidGeorge Fettig, chief marketing officer of $1.5 billionNewton, Mass.-based Euro-Pro, which makes theNinja brand of housewares and is a client. “When youspend that kind of money on television, you cannotafford mistakes.”

The 15-year-old Marketsmith was founded by Monica Smith, whohanded over day-to-day operations to Jill Draper lastyear. Ms. Smith focuses on iPredictus.com, whichmarkets the software on a stand-alone basis.Marketsmith’s consultants interpret the data for

corporate clients. “We know whether Fox 10a.m. on Saturday performs better than 10:30p.m. for a product,” Ms. Draper explained.

She expects continued growth in anincreasingly complex media world.

“Every single client wants to understandhow to use digital,” Ms. Draper said.

—elizabeth macbride

How it grew: BuzzFeed has come along way from its birth in 2006 as alab for viral content by Huffington

Post co-founder Jonah Peretti, when onestory featured someone trying to break abeer bottle to use as a shiv in a bar fight.

That was then. Now, eight years later,the company spans the globe, coveringeverything from politics to animal-rightsissues.

Although BuzzFeed hasn’t abandonedits roots in providing viral candy, readerscan also find such hard-hitting journalismas a September 2014 piece titled “BeingRaped in a Bankrupt City,” about the longaftermath of a 1997 rape in Detroit.

During the past few years, BuzzFeed has been positioningitself to become the No. 1 source of news, entertainment andinformation in digital media, and now it is putting moreemphasis on content. In August, it beefed up its domesticdivisions and plans to plant its flag in Germany, Japan, India,Mexico and other countries. Competition includes sites suchas Gawker and Vox.

Also in August, BuzzFeed announced it had raised $50million from venture-capital firm Andreessen Horowitz, whichreportedly values the site at about $850 million. “The future ofcontent companies is crystal-clear: mobile, video, social andtech,” said Kenneth Lerer, BuzzFeed’s executive chairman.“Expanding BuzzFeed’s business across each of these areas isthe key to the future.”

How it grew: Integral Ad Science uses big data tohelp advertisers navigate the Wild West of theInternet, choose the right websites for their ads—

and avoid the wrong ones. Its True Advertising Quality,or TRAQ, score measures key virtues of Web pages, suchas safety, content and clutter.That kind of criticalintelligence has attracted 70 of the 100 top onlineadvertisers in the U.S., according to CEO Scott Knoll.Revenue doubled last year, he said, as clients startedusing more products when they saw their ad performanceimprove and as they became aware of the importance ofviewability and fraud prevention. Mr. Knoll said heexpects sales to double again this year.

The company is also working with new partners thatwill make its products easily accessible to their clientswho are running video campaigns.The firm’s purchase earlier this year ofU.K.-based Symplytics gives it the ability to vet in-app and mobile adcampaigns. Just released is technology that can tell advertisers which adplacements are really working. “We know which distribution partners areactually creating positive lift, which ads are the ones making a difference,and what are the characteristics of ads driving impact,” said Mr. Knoll.

—judith messina


BuzzFeed

AppNexus

What it does: Provides breaking news, originalreporting, entertainment and video across the Web to a global audience of 150 million

Website:buzzfeed.comTwitter: @BuzzFeedFounder and CEO:Jonah Peretti Headquarters:Manhattan Three-year growthrate: 2,900%* 2013 revenue: $60 million*Profitable? YesLocal employees:353 Total employees:575*Crain’s estimate

Marketsmith What it does: Offers mediaconsulting and analytics

Website:marketsmithinc.comTwitter:@marketsmithincPrincipals: Monica C.Smith, CEO, founderand chairwoman; Jill Draper, presidentHeadquarters:Parsippany, N.J.Three-year growthrate: 2,753%2013 revenue:$72.9 million*Profitable? NoLocal employees: 25Total employees: 25*Gross revenue

What it does: Lets digital advertisers deliverads to an individual across multiple devicesTapad

What it does: Operates a platformfor advertisers to evaluate thequality and performance ofwebsites as marketing vehicles

Website:integralads.comTwitter:@integraladsCEO: Scott KnollHeadquarters:Manhattan Three-year growthrate: 3,230% 2013 revenue:$23.4 millionProfitable? YesLocal employees:96Global employees:148

Website:tapad.comTwitter: @tapadCEO: Are TraasdahlHeadquarters:ManhattanTwo-year growthrate: 1,847%2013 revenue:$22.9 millionProfitable? YesLocal employees:100Total employees:130

NAVIGATOR: Scott Knollhelps advertisers avoidthe wrong websites.

Integral AdScience

How it grew:AppNexus,founded seven

years ago, has earnedbragging rights asone of only ahandful of NewYork tech companiesto reach the billion-dollar valuationmark, thanks to arecent $60 millioninvestment from aBoston-based equityand assetmanagementcompany.

Led by pioneersof the Web’s first adexchanges,AppNexus offerstechnology centralto today’sprogrammatic, orautomated, way ofbuying and sellingonline media.Buyers and sellersconnect on major ad exchanges such asGoogle’s DoubleClick throughAppNexus.The company also is thetechnology engine behind Microsoft’sAd Exchange.

Notably, the firm says it expects tomore than double its customers’ total2013 ad spending of $1 billion in 2014.It also has increased its head count tonearly 600 employees across 10 officesworldwide, including a new Singaporeoffice opened in 2013 and expanded inMay 2014, and another in Sydney thatopened this year.

“When we founded AppNexus, ouraspiration wasn’t just to build theworld’s best ad-tech company—wewanted to prove you can build a globaltechnology company right here in NewYork,” said Brian O’Kelley, CEO andco-founder. Mission accomplished.

—bruce w. fraser

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What it does: Providesadvertising technology that powers ad exchanges used to automate the buying of digital advertising

Sevenfirms onthis year’slist are ledby women50

Website:appnexus.comTwitter: @appnexusCEO: BrianO’KelleyHeadquarters:ManhattanThree-year growthrate: 2,888%* 2013 revenue:$127 million Profitable? YesLocal employees:450Total employees:600*Crain’s estimate

—tripp whetsell

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—bruce w. fraser

PRESIDENT: Jill Draper

How it grew: When they workedtogether at the large real estatedevelopment firm Dermot Co.,

Michael Hyman and Florim Lajqi dreamed ofstarting their own construction business whenone of their colleagues moved to CW Capital, thecompany that controls the huge StuyvesantTown-Peter Cooper Village residential complex.

Leaving Dermot to launch Liberty BlueGroup, the pair spun the CW Capital connectioninto a major assignment, winning the job torefurbish units in those buildings.They knewthat major investment firms like CW Capital,which have taken over large swaths of Manhattanresidential real estate in recent years, needed help to net higher rents asthe city’s apartment market soared.

“It’s hard to find a firm like ours that can reliably renovate dozensof apartments,” Mr. Hyman said.

Liberty Blue Group now does general contracting and constructionmanagement at the 11,000-unit Stuy Town and contracting at PeterCooper. It also does contracting at Riverton, a Harlem complex thathas more than 1,200 units and is partly managed by CW Capital.

The pair say their business has now grown from $7 million inrevenue two years ago to an expected $40 million this year.

—daniel geiger

How it grew: WhenHoward Lermanfound incorrect

information on a website abouta local business he was trying touse, he “saw a problem everyonecan identify with,” he said.

Spotting an opportunity toclose a gap in the marketplace,the serial entrepreneur co-founded the business nowknown as Yext in 2012.Thecompany’s GeoMarketingsubscriptioncloudservicemaintainsand updatesinformationaboutbusinessesthat isstored inmultipleonline datasources suchas searchengines andsocial-media sites,providing a single point ofcontact.

Since 2013, Yext has addedlists of products and services,calendars, menus and staff bioinformation to the content itupdates. With more than $60million in revenue fromsubscriptions, Yext is expectinga growth rate of 70% this year.“We’re in less than 1% of thelocations in the world,” reckonsMr. Lerman.

There seems to be plenty ofroom for expansion: Yext hasgone global this year, offeringdata in 120 languages in 80countries. “We’re buildingnetworks in the U.K.,Turkey,Brazil and Canada [that are]expected to be online in thefourth quarter,” said Mr.Lerman.

—janice fioravante

How it grew: AlphaSights has created a teamof highly entrepreneurial consultants whofind ways to track down hard-to-access

experts with the specific expertise its clients need inareas such as finance, telecommunications andtechnology. Founded in 2008, it now serves clientsincluding private-equity firms, hedge funds, strategyconsultancies and corporate executives.

AlphaSights customizes its approach for everyclient and every request. “There’s no blanket approachfor finding an expert,” said Managing Director StirlingCox.

The firm continually seeks client feedback in orderto improve its service.That approach seems to bepaying off: About 25% of AlphaSights’ new businesscomes from referrals. “Because we’re a service business,we know [that] if we do a good job for our clients, wewill grow more rapidly from referrals,” Mr. Cox said.

It doesn’t hurt that the entire consulting industry isseeing strong growth right now. Consulting magazineprojects double-digit growth in the sector this year.

—eilene zimmerman

How it grew: Ryan Schulke and MatthewConlin aimed to go after lucrativebusiness from online advertisers and

publishers when they co-founded their startup,Fluent, in 2010. Fluent offers a technology thatplaces, in real time, what Mr. Conlin calls a “hyper-relevant” ad that it deems most appropriate to eachreader who signs up for an online newsletter andothers who respond to online offers, relying on datathe subscribers have supplied.

One secret to its growth is a method of chargingclients that users like. Instead of the standard cost-per-click (CPC) or cost-per-thousand impressions(CPM) model, advertisers pay on a cost-per-action(CPA) basis.That is, when consumers activelyengage with an ad, as when they sign up for a loyaltyclub touted in an ad in an online newsletter. “They take the risk out ofInternet advertising,” said a customer, who didn’t want his nameused—lest competitors learn about Fluent.

AlphaSights

Refinery29

What it does: Connects businessleaders to expert advisers

Website:alphasights.comTwitter:@AlphaSightsPrincipals: MaxCartellieri andAndrew Heath, co-founders andmanagingdirectorsHeadquarters:London (largestoffice is inManhattan)Three-year growthrate: 1,273%2013 revenue: $30 million Profitable? YesLocal employees:125Total employees:250

YextWhat it does: Updatesonline, location-relatedinformation about a business—such asaddresses, phonenumbers and hours of operation—onmultiple websites

Website: yext.comTwitter: @yextPrincipals and co-founders: HowardLerman, CEO;BrianDistelburger,presidentHeadquarters:ManhattanTwo-year growthrate: 1,149%2013 revenue:$33.9 millionProfitable? NoLocal employees:257Total employees:268

What it does: Handles construction management andcontracting work for developers

Liberty Blue Group

What it does: Offers a technology thatmatches email newsletter subscribersand others to carefully targeted ads

Website:fluentco.comTwitter: @fluentincPrincipals: RyanSchulke, CEO;Matthew Conlin,presidentHeadquarters:ManhattanThree-year growthrate: 1,094%2013 revenue:$52.7 millionProfitable? YesLocal employees:63Total employees:65

Website:libertybluegroup.comTwitter: @lbgllcPrincipals: MichaelHyman and FlorimLajqiHeadquarters:ManhattanTwo-year growth rate:775%2013 revenue: $17.5million Profitable? YesLocal employees: 30Total employees: 30

FluentHow it grew: With a deft combination oflifestyle, fashion, commerce and content,Refinery29 has become a go-to media brand

for young women. In 2013, it nearly doubled its sales andin September grew its monthly audience to more than 16million, up from 12 million in August, making it an evenmore attractive venue for advertisers, who account for thebulk of its revenue.

“The larger you get and the more women you reach,the more efficient you are as a marketing outlet forbrands,” said CEO Philippe von Borries. “They’rewilling to spend more money with you.”

Now he and President Justin Stefano are focusedon mobile content and video, moving beyond short-form, how-to features to documentaries and otherlonger-form programming. The goal: to drive moregrowth and transform the lifestyle-cum-retail site intoa media and entertainment platform, the better to serve its advertisers andkeep fashionistas wanting more.

“It’s all about video and entertainment,” said Mr. von Borries.This year, the company started producing video series and

documentaries. It hired former Bravo TV executive Lauren Zalaznick as astrategic adviser and actress Drew Barrymore as an editor at large. In July, itlaunched an eight-episode documentary series following a Swedish popgroup on tour. It has also revamped its mobile app and upped its presenceon Facebook and other social media.This year, 50% of traffic to the site ismobile-based, up from 30% last year.

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—judith messina

Website:refinery29.comTwitter:@Refinery29Co-founders:Philippe vonBorries, CEO;Justin Stefano,presidentHeadquarters:Manhattan Three-year growthrate: 1,427%2013 revenue:$29.1 millionProfitable? NoLocal employees:180Global employees:200

How it grew: When financial-technologyindustry veteran Michael DeSimonebecame CEO of a company known as

E4X in 2007, it focused on currency conversion ininternational sales.

He soon pivoted the business in a different di-rection: providing U.S. retailers the technology andservices needed to serve global customers seamless-

ly and easily. That meant thefirm—renamed Borderfree in2013—tackles everythingfrom payment and regulato-ry compliance to customerservice.

“We’ve helped retailersunlock an existing significant level of consumer

demand just waiting to be tapped,” said Mr.DeSimone.

That and the rapid growth of global e-commerce have fueled the company’s as-cent; the market for retail e-commerce inmore than 20 global markets excluding theU.S. grew 108.7% overall from 2010 to2013, to $496 billion, according to market-research firm eMarketer.

Borderfree went public in March. Youmight say the company’s future seems tobe, well, borderless.

BorderfreeWebsite:borderfree.comTwitter:@GoBorderfreePresident and CEO:Michael DeSimoneHeadquarters:ManhattanThree-year growthrate: 743%2013 revenue:$110.5 millionProfitable? YesLocal employees:133Total employees:189

What it does: Packages commerce,fashion, culture and news aimedat millennial women

What it does: Providestechnology that makes global e-commerce easier

—anne field

—anne field

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TREND SPOTTERS: JustinStefano (left) and Phillipe vonBorries are focusing on mobileand video at Refinery29.

THINKINGGLOBALLY: MichaelDeSimone

UP IN THECLOUD: HowardLerman

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How it grew: When Erlin Dominguez, theowner of a Manhattan-based graphicsbusiness, needed a loan to buy an engraving

machine, he went to online lender OnDeck. Mr.Dominguez, whose firm generates $190,000 inannual revenue, needed $15,000. He got his loan in aweek and will pay it off in 180 days with 27%interest.

“Everything was clear and easy,” he said.OnDeck, founded in 2007, has had explosive

growth based on the need of small-business ownersfor transparent and easy financing—and theirwillingness to pay substantial interest rates for it.OnDeck is reportedly set to launch an IPO thatwould value the company at $1.5 billion.

The firm has loaned more than $1 billion to Main Street businesses.Typical loan sizes are $5,000 to $250,000, with terms of three to 24months.The company has broadened its pool of small-businessborrowers, lending to those that banks don’t find creditworthy, said CEONoah Breslow. But it also is seeing growth among entrepreneurs such asMr. Dominguez, who want to avoid a financing hassle.


How it grew: MediaMath may have hit atrifecta of “hot” in the New York startupworld: It landed a C round of funding

($180 million, including equity and debt), signed aheadline-grabbing lease at 4 World Trade Center andwas set to surpass 500 employees at press time.

It didn’t hurt that in 2013, clients—MediaMath’smarquee names include eBay, 1-800-Flowers.com andPitney Bowes—were scaling up their onlineadvertising, doubling or tripling spending.Thecompany also expanded internationally.

“We have these great tailwinds,” said CEO JoeZawadzki.There’s plenty of open sea to play in: Onlineadvertising grew to $44 billion during 2013, accordingto Forrester Research, but that represented only 19.6% of total ad spending.

More than 40% of MediaMath’s revenue comes from internationalsources.The company,which has a platform that competes with firmsincluding AppNexus and DoubleClick, has 12 worldwide offices. Inaddition to hiring—part of its state-aided WTC lease included acommitment to create 1,000 new jobs—MediaMath may use the moneyfor more acquisitions.This April, it announced it was buying Tactads, aFrench firm whose algorithms identify and associate devices usingstatistical techniques.


OnDeck

Kaltura

What it does: Lends to small businessesthrough a proprietary credit platform

Website:ondeck.comTwitter:@OnDeckCapitalCEO: Noah BreslowHeadquarters:ManhattanThree-year growthrate: 622%2013 revenue:$65 millionProfitable? NoLocal employees:225Total employees:367

What it does: Enablesmarketers to buy targeted adsonline, including mobile,social and video

Website:mediamath.comTwitter:@MediaMathCEO: Joe ZawadzkiHeadquarters:ManhattanThree-year growthrate: 512%2013 revenue:$322.4 millionProfitable? YesLocal employees:297Total employees:486

MediaMathHow it grew: Launched in 2006 as an open-source tool for sharing video, Kalturastumbled into a role building the video

backbone of the Internet.The timing was right, and theteam of four founders—Ron Yekutiel, Shay David,Michal Tsur and Eran Etam—had the entrepreneurialexperience to recognize that their free-flowing platformcould be adapted across verticals.

Organizations ranging from Disney to Yale and theBank of America now use Kaltura to store and managetheir video. By 2017, according to Cisco, 70% of thetraffic of the Internet will be video, suggesting thatKaltura is in store for more stratospheric growth.

The company, which has a team of developers inIsrael, has six offices worldwide and continues toexpand internationally, seeking large clients inother markets.

Kaltura’s aim is to be the video systemprovider for companies, such as IBM, whosevast servers run the cloud. “All of these cloudcompanies need a system,” said Mr. Yekutiel,adding that those large firms don’t want toadjust their operations to cope with differentsoftware providers in different industrysegments.

“This is a home-run type ofswing, being the ubiquitous videoprovider,” he said.

The company could be largeenough for an IPO by nextyear, according to Mr. Yekutiel.


50Website:kaltura.comTwitter: @kalturaCEO: Ron Yekutiel,co-founder andchairman Headquarters:ManhattanThree-year growthrate: 639%2013 revenue:$29.2 millionProfitable? NoLocal employees:61 Total employees:300

What it does: Provides video storage and management software and systemsto companies

How it grew: Tower LegalSolutions has been riding astructural change in the

economy that has more companies hiringworkers on a project basis and more workerspreferring that arrangement. More thanone-third of all U.S. workers are contingent,according to a recent survey by FreelancersUnion and Elance-oDesk.

Traditionally, companies begin hiring in arecovery.Tower Legal CEO Leslie Firtelladded a placement division to prepare for thatshift, and 30% of the firm’s growth came fromit last year. But even more came from another

new division, managed services, which givesclients, many of them in finance, the chanceto manage their temporary workforces asthey might their permanent ones. In thepast year, 70% of the company’s growthcame from this division, according to Ms.Firtell, who founded the firm in 2007 andhas expanded it to six offices nationwide.

That’s not surprising in an environmentwhere employers prize flexibility. “Thereview service allows clients to track andadjust the temporary resources they areusing,” Ms. Firtell said.


What it does: Provides temporarylegal staffing and placement services

Website:towerls.comTwitter:@TowerLegalCEO: Leslie FirtellHeadquarters:ManhattanThree-year growthrate: 489%2013 revenue:$82.9 millionProfitable? YesLocal employees:35Total employees:61

Tower Legal Solutions

How it grew: Because more companies areturning to hired guns to save money, reducebenefit costs, plug talent gaps and stay

nimble in a more global economy, they need helpmanaging this workforce. Enter Work Market.

Its platform helps corporate clients manageeverything from testing freelancers’ capabilities toprocessing 1099 forms.

“Our clients use 500 to 5,000 contractors on anygiven day, and our software helps them manageengagement end-to-end,” said CEO Jeff Leventhal.Drawn by the platform’s convenience, clients such asFedEx, Home Depot and Morgan Stanley have come onboard.

Freelancers on the platform are mainly involved intech, logistics, transportation, A/V and digital signageinstallation. Although it has fewer than 50 employees, Work Market says itgets gigs for 25,000 freelancers every day.


What it does: Offers asoftware platform that helpscompanies manage on-sitefreelancers and contractors

Website:workmarket.comTwitter:@workmarketPrincipals: JeffLeventhal and JeffWald, co-foundersHeadquarters:ManhattanTwo-year growthrate: 581%2013 revenue:$30.8 millionProfitable? NoLocal employees:47Total employees:48

Work Market


MATCHMAKERS: Jeff Leventhal (left)and Jeff Wald connect freelancers withprojects at WorkMarket.

ADDING IT UP: Joe Zawadzki’sMediaMath has landed a big fundinground and is expanding overseas.

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21AREAS REPRESENTEDin the Fast 50

39Manhattan

4Brooklyn

3Long Island

1Bronx

1Staten Island

1Westchester

1New Jersey

CAPTAIN VIDEO: Ron Yekutiel

IN THE RACE AGAINST TIME, IT’S BEST TORACE IN ONE OF THESE.Any airline can get you places. Getting New Yorkers there exactly when they say they’re going to is the tricky part. Doing it better than any major U.S. airline? That’s something to crow about. No wonder more people choose Delta than any other airline.

Based on DOT Air Travel Consumer Report statistics for JFK and LGA domestic flights 4/14 to 6/14 for flights flown and compared to major U.S. carriers: American Airlines, JetBlue Airways, US Airways, United Airlines and Southwest Airlines.

How it grew: With a website that makes iteasy for small companies to apply quicklyfor commercial loans online, seven-year-

old Biz2Credit has positioned itself for profit.Biz2Credit’s ever-expanding group of lenders,including a number of small banks, is eager to makedeals with small firms at a time when bank loansunder $1 million have stagnated, according to aFederal Reserve Bank of New York survey. Last year,Biz2Credit facilitated $380 million in loans, up from$200 million in 2012.

Since the start of the year, Biz2Credit has alsowelcomed an influx of family and institutional creditfunds, a move that has enabled the firm to facilitate

800 nonbank loans, or more than $2 million infinancing, for small businesses.These institutionalfunds have veered away from merchant cashadvances, whose terms—higher interest rates andshort-term conditions—are seen as slippery slopesthat could lead to regulatory backlash and highdefault rates, said co-founder and CEO RohitArora, a Crain’s Top Entrepreneur in 2011.

And with mainstream banks starting todigitize their loan application process,Biz2Credit’s future looks equally robust. Banks arebeginning to join the fold not only as lenders butalso as customers that are using the firm’stechnology.

How it grew: Four years ago, after scoring a roster ofheavyweight customers including Columbia Universityand real estate developer Forest City Ratner Cos.,

McKissack & McKissack—as the firm is known—decided to expandthe woman- and minority-owned business beyond construction andproject management to general contracting.

The firm, incorporated in 1991, proved its worthwith small, general-contracting jobs it snagged withexisting customers. Owner Cheryl McKissackDaniel also assembled an advisory board ofconstruction and real estate industry players, such asadvisory chair Ed Jordan, who sold his multimillion-dollar general-contracting business to Skanska, toguide her in launching and growing her new service.

“If I disagree with them, I have to convincethem I’m right, and if I can’t, I have to make the decision their way,” said Ms. Daniel, whose company wasthe biggest revenue gainer from 2012 to 2013—289.4%—on Crain’s September 2014 list of the New Yorkarea’s largest women-owned firms.

With total U.S. construction spending exceeding $950 million in June 2014, up 8.2% from a year earlier,according to the U.S. Census Bureau, McKissack is rapidly getting a slice of the general contracting pie. It’swon jobs ranging from a $50 million Kimpton Hotel in Philadelphia to a $280 million long-term nursingfacility in Harlem.


ThrillistMedia Group

What it does: Matches small businesses and lendersWebsite:biz2credit.comTwitter:@biz2creditPrincipals: RohitArora, co-founderand CEO; RamitArora, co-founderand president Headquarters:ManhattanThree-year growthrate: 432%2013 revenue: $13.3 millionProfitable? YesLocal employees:50Total employees:100

Website:mckissack.com Twitter:@mckissackcorp President andCEO: CherylMcKissack DanielHeadquarters:ManhattanThree-year growthrate: 437%2013 revenue:$100.8 millionProfitable? YesLocal employees:120Total employees:151

How it grew: When Thrillist Media partneredwith General Electric to celebrate the 45thanniversary of the first moon landing this past

July, its commemorative lunar sneakers sold out in sevenminutes at JackThreads, its flash-sales clothing brand.That ingenious melding of content and commerce ismaking Thrillist a fortune. Indeed, half the company’srevenues come from retail.

“We have built a really strong technology and datainfrastructure that allows for integrating content andcommerce in a way that others haven’t done,” said CEOand co-founder Ben Lerer, a Crain’s 40 Under 40 in 2010.

Back for its third year as a Crain’sFast 50, Thrillist’s three brands—clothes and grooming, gear andgadgets, and food, drink and travel—are attracting 11 million subscribersand 7 million visitors a month, saidMr. Lerer, adding that more bigpartnerships are in the wings.

In the meantime,Thrillistcontinues to expand its vision—addingsuits, for example, to JackThreadsofferings that previously focusedstrictly on streetwear; bringing on abuyer to run a home-goods category

that ranges from cooking supplies to furniture; andwading into territories, such as Staten Island, that are offthe beaten path with coverage of cool things to do, see andeat there.

“We’re able to see pockets of users in thesecommunities actively engaged in our content and [arerealizing] we can create content in those markets,” Mr.Lerer said.

—judith messina

Website:thrillist.comTwitter: @ThrillistCEO: Ben LererHeadquarters:ManhattanThree-year growthrate: 469%2013 revenue: $83 millionProfitable? Yes Local employees:256Global employees:306

What it does: Runs a city guideand commerce site formillennial guys, curating whatthey should do, see, eat, readand wear

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MASTER BUILDER:Cheryl McKissack Danielis scoring big as a generalcontractor.

What it does: Provides construction and projectmanagement and general contracting services

McKissack & McKissack

—cara s. trager

—cara s. trager

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How it grew:Maxymiser isappearing in the

Crain’s Fast 50 for the secondyear in a row as it expandsglobally and satisfied customersadopt more of its products. Lastyear, the company launchedoperations inFrance, theNetherlands,Sweden,DenmarkandAustralia;establishedfootprints inAsia andLatinAmerica; andexpandedalliances withadvertisingagencies andtechnical partners such as IBM.

New products that helpadvertisers personalize theirmessages are also drivinggrowth. They include suchtools as the new CustomerImpact Discovery that showclients which parts of themarket they’re serving well and where they areunderperforming. Other toolshelp advertisers evaluatedozens of different versions of apage to figure out which wouldwork best for differentaudiences. More are on theway, said Mark Simpson,founder and president.

“[Customer ImpactDiscovery] has been massivelywell received by clients andagencies,” he said. “It provides amuch higher return oninvestment and insights forclients.”

—judith messina

How it grew: Airline-reservations services, financial-services firms and othercustomers that deploy Kemp’s load-balancer technology depend on theconstant availability of their websites, especially at crunch times.That’s where

Kemp Technologies comes in: Behind the scenes, the company routes apps to physical,cloud-based or hybrid servers that have the capacity these clients need. Customers includeLionsgate,Texas A&M University and Mazda.

Using software-based technology gives Kemp a leg up on competitors that are primarilyhardware-oriented, according to Chief Marketing Officer Atchison Frazer. Kemp’sproducts also have caught on because of its ability to be used in multiple platforms—hardware, software and cloud-based—and their templates can be used for popularprograms such as Microsoft Dynamics and VMware Horizon View.

The company also has benefited from overseas growth: European revenue now makes up45% of Kemp’s bottom line, compared with 10% four years ago.


MaxymiserWhat it does: Uses dataand testing tools to helpadvertisers direct ads to the right consumers

Website:maxymiser.comTwitter:@MaxymiserPresident: MarkSimpsonHeadquarters:ManhattanThree-year growthrate: 406%2013 revenue:$26.6 millionProfitable? NoLocal employees:51Global employees:334

Kemp Technologies


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Website: kemptechnologies.comTwitter:@KEMPTechPrincipals: RayDownes, CEO;Peter Melerud, co-founder andexecutive vicepresident ofproductmanagementHeadquarters:ManhattanThree-year growthrate: 405%2013 revenue:$24.3 millionProfitable? NoLocal employees:30Total employees:150

What it does: Balances traffic loads among its clients’ servers so theirwebsites and e-commerce sites are available when users need them

CRASH-PREVENTERS: Ray Downes(left) and Peter Melerud keep heavytraffic from overwhelming Kempclients’ websites.

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‘I have to convincethem I’mright’

How it grew: A sprawling onlinepublication that ranges freely from thegossipy to the wonkish, Business Insider

has seen explosive growth ever since it launched in2009 out of its more narrowly focused predecessor,Silicon Alley Insider.

Founded by former DoubleClick ChiefExecutive Kevin Ryan, and led by Wall Streetanalyst turned Editor in Chief Henry Blodget,Business Insider ranked fourth among comScore’sbusiness and financial news titles for August—itwas eighth in August 2013—with 27.4 million U.S.unique visitors, a spike of 106% over the same

period last year.Revenue

grew 94% in2013, to $20million. Mr.Blodget creditsbrand-buildingefforts thatdrew newadvertisers likeGoldmanSachs and Cisco, and the site’s earlystart in native advertising, which

paid off in 2013 as sponsored content rode a wave with marketers. He’sforecasting another solid year in 2014, along with continued overseasexpansion, as the soon-to-launch Business Insider U.K. becomes theseventh international edition.

—matthew flamm

How it grew: Ken Harlan could have called ita day after selling one digital advertisingcompany in 2005 and merging a second one

in 2008. Instead, recognizing a huge opportunity in thefast-growing mobile-advertising market, he and co-founder Val Katayev, who isn’t with the companyanymore, launched MobileFuse in 2009, the yearbefore the iPad hit the market.

Under Mr. Harlan, MobileFuse became one of thefirst companies in its industry to offer brands thetransparency of knowing on what mobile sites and appstheir ads would be placed. Powering the firm’s growthhas been the addition of programmatic mindsettargeting, which means dynamically matchingadvertisements that are relevant to a consumer’s location.

“Because brand advertisers have become more comfortable withadvertising across mobile devices, the response has been tremendous in2014, and we are very excited about the future,” said Mr. Harlan.

It hasn’t hurt that MobileFuse has built a reputation for attentivenessto its customers. It won the prestigious 2014 ASPY Award for BestCustomer Service at the iMedia Agency Summit, run by iMediaCommunications Inc., a community of senior marketers in the digitalspace.

How it grew: With Aden + Anais’ gauzyswaddling clothes donned by babies ofcelebrities such as Gwen Stefani and

Beyoncé, demand for the company’s products continuesto skyrocket, despite the growing number ofcompetitors like Halo and Summer Infant. Aden +Anais’ muslin blankets are sold in 7,000 stores in 65countries. One secret weapon is the firm’s strategy togrow brand recognition for new offerings, such as itsfirst, soon-to-be-introduced line of toddler bedding.

“My philosophy is to have a product live for at leasta year in the boutique space so it can find its feet andbecome sustainable,” said founder and CEO RaeganMoya-Jones, who said that having upscale shops suchas ABC Carpet & Home,Takashimaya in Japan andHarrods in London sell her products give them a certain cachet.

Once an Aden + Anais product is selling steadily in boutiques, Ms.Moya-Jones tweaks it to make it more affordable (using less cotton anddifferent packaging), then releases it to mass retailers like Babies R Us,which, according to research firm IBISWorld, has the biggest marketshare in the $11.9 billion baby-goods business in the U.S.

Aden + Anais is also seeingtriple-digit growth ininternational sales. In an effort toretain control of her brand, ratherthan work with distributors, Ms.Moya-Jones has set up officesand warehouses in the U.K.,Japan, Australia and Canada.“My goal is to have at least $150million in revenue in the nextfour years,” she said.

—maggie overfelt


MobileFuse

Regeneron

What it does: Provides brand-focused mobile media solutions

Website:mobilefuse.comTwitter:@MobileFuseLLC CEO: Ken HarlanHeadquarters:ManhattanThree-year growthrate: 354% 2013 revenue:$11.1 million Profitable? NoLocal employees:11Total employees:39

Business Insider What it does: Runs abusiness news site

Website:businessinsider.comTwitter:@BusinessInsiderCEO: Henry BlodgetHeadquarters:ManhattanThree-year growthrate: 321%2013 revenue: $20 millionProfitable? NoLocal employees:165Total employees: 185

What it does: Sells muslinblankets, bibs andsleepwear for babies

Website:adenandanais.comTwitter:@adenandanaisCEO: RaeganMoya-JonesHeadquarters:BrooklynThree-year growthrate: 338%2013 revenue:$41.7 millionProfitable? YesLocal employees:53Total employees:77

PLUGGED IN: Linda andRyan Walsh have wonjobs with big retail clients.

Aden + Anais

How it grew: A large R&D effort is paying offfor Regeneron, thanks in large part to twodrugs: Eylea for wet macular degeneration

(an age-related vision loss), and Alirocumab, whichhelps lower cholesterol for those who need more than astatin or are statin-intolerant.The latter is expected togain FDA approval within 12 to 18 months, saysMurray Goldberg, chief administrative officer.

A study of Alirocumab showed that twice-monthlyinjections kept patients’ cholesterol down after a year,prompting expectations of peak annual sales of $10.9billion.

In July, Regeneron’s longtime partner, Frenchdrugmaker Sanofi, raised its stake in the company to22.5% and said it wants to increase it to 30%. But Regeneron knows it canfinance its own research now that it has been profitable two years’running. “Now we can use our own money,” Mr. Goldberg said.

Regeneron is currently building a 1 million-square-foot addition to itsTarrytown headquarters for more labs and offices, as well as addingmanufacturing space outside Albany.

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Website:regeneron.comTwitter: None CEO: Dr. LeonardSchleiferHeadquarters:Tarrytown, N.Y.Three-year growthrate: 358% 2013 revenue:$2.1 billionProfitable? YesLocal employees:1,646Total employees:2,723

What it does: Developsbiopharmaceuticals

Walsh Electrical Contracting

How it grew: Two months before his father died in 2011, Ryan Walsh returned tohelp his mother, Linda, keep his family’s firm afloat. He had been absent for 10years while in school, running a demolition contracting firm and working in

metal recycling.Since Mr. Walsh came back, the company has scored larger electrical contracting

projects, handling jobs that run as high as $2 million, compared with $200,000 in 2010, andserving such retail heavyweights as Tiffany & Co., Joe Fresh and Tommy Bahama.

To power the firm’s growth, Mr. Walsh, 33, invested in new trucks and tools, armedemployees with smartphones to ensure their accessibility, and computerized the business tostay on top of each job’s progress. He also hired four project managers, positions that werenew to the firm and essential for handling the larger jobs he sought.

These steps helped Mr. Walsh convince existing clients that his company had theequipment and personnel to bid on bigger jobs. Meanwhile, he leveraged his marqueeclients as references and, to illustrate the business’s capabilities, created marketing materialsshowcasing completed projects. Keeping his eye on growth, Mr. Walsh has also become activein local community and business groups to expand his business network.

Website:walshec.comTwitter: nonePrincipals: LindaWalsh, CEO; RyanWalsh, presidentHeadquarters:Staten IslandThree-year growthrate: 327%2013 revenue:$20.4 millionProfitable? NoLocal employees:108Total employees:108

What it does: Provides electrical contractingservices to commercial, residential and industrial customers


—cara s. trager

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—bruce w. fraser

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‘Myphilosophy is to have aproduct livefor at least ayear in theboutiquespace’

How it grew: Babyganics’ success this yearis a testament to the growing power of theorganic baby-products brand.The

company has refined its packaging—a cheerful greenand white with a signature teddy bear—and stepped-up distribution with a powerful group of retailers,including Amazon,Target, Kroger and Walgreens, aswell as specialty stores such as Buy Buy Baby andGiggle.

The strategy has proved to be a winner.Babyganics’ weekly sales at Target stores are trendingat 15 times last year’s, and its total sales almost tripledin 2013, said CEO and co-founder Kevin Schwartz.

“We’ve taken our branding and packaging to thenext level,” said Mr. Schwartz. “You don’t see useverywhere. But where you do see us, you see us in a significant way.”

Up next: the company’s first media and social-media campaign, frombanner ads to video and 3-D animations.

Also in the works are new products made with ingredients developedby Babyganics, among them a skin-care lotion with five cold-pressedseed oils marketed as rich in antioxidants. Babyganics plans to roll outtrial-size products, and, lest parents switch to another brand forvacations, travel-size products, too.

—judith messina

What it does: Creates and sellsorganic baby products Babyganics

Website:babyganics.comTwitter:@BabyganicsCEO: KevinSchwartzHeadquarters:Hicksville, L.I. Three-year growthrate: 277% 2013 revenue: $30 millionProfitable? YesLocal employees:31Global employees:41

ORGANIC GROWTH:Kevin Schwartz expandedhis healthy-baby-care line.

DREAM WEAVER:Eugene Alletto sells high-tech pillows.


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How it grew: Madison Logic helpscompanies uncover an audience thathasn’t yet visited their website. By

collecting data on potential customers’ behavior—such as whether they have read particular articles orvisited certain social-media sites—the lead-generation firm can tell clients when consumers aremore inclined to purchase a product or service their site.

Pivoting into lead generation has been the key togetting into “explosive growth mode,” according toco-founder and CEO Erik Matlick.

Madison Logic started out auctioning pay-per-click advertising in 2009 but found the spaceovercrowded. Today, it shares its findings onconsumers’ intentions to buy with B2B publishersand marketers—more than 1,000 firms—includingUBM, Incisive Media and Forbes. And withdemand for its “predictive analytics” showing no signs of slowing,neither does Madison Logic’s growth.

How it grew: GHWAlaunched in 2009, inthe middle of the

recession. Partner AlanGoldstein said the goal then wasfor the full-service architecturalfirm to be able to survive andget set for more work when theeconomyandresidentialconstructionpicked upagain.

“Therewere only 21people herethen, and wejust wantedto be in aposition totakeadvantage ofthat when ithappened,”he said.

GHWA was working onseveral projects for whichfunding was already in placeright before the economiccollapse, and that helped sustainthe company through thedifficult times.

Hanging tough paid offwhen the recovery finally came.“Almost all of the clients we hadworked with prior to therecession came back to us withnew work,” Mr. Goldstein said.Those clients referred manyothers to GHWA, and theirloyalty and word-of-mouthreferrals have been crucial to thefirm’s growth.

—eilene zimmerman

GHWA (Goldstein Hill & West Architects)

What it does: Designsresidential buildings

Website:ghwarchitects.comTwitter:@GHWArchitectsPartners: AlanGoldstein, L.Stephen Hill, DavidWest (above)Headquarters:ManhattanThree-year growthrate: 269%2013 revenue:$11.1 million Profitable? YesLocal employees:100Total employees:105

Madison LogicWebsite:madisonlogic.comTwitter@madisonlogic Principals: Erik Matlick, CEO,and Vin Turk,senior vicepresident Headquarters:ManhattanThree-year growthrate: 268% 2013 revenue:$18.7 millionProfitable? NoLocal employees:48Total employees:50

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35How it grew: If Bedgear CEO Eugene Allettohas his way, consumers will put as muchthought into shopping for pillows, sheets and

mattress pads as they do bras, sneakers or beer. “The onlything left that is barbaric was sleep,” he said.

The 16-year-old company takes sleep to a new level:Its $59 React pillow, for instance, contains a cooling geland a 3-D structure to circulate air. Mr. Alletto said thecompany last year introduced new products such assheets into its existing sales channels, powering someof its revenue growth.

The founder of Bedgear (making its second Crain’sFast 50 appearance), Mr. Alletto has also introducedhis sleep revolution in high-touch retailers includingHicksville, L.I.-based Sleepy’s. Now the company ismoving into big-box stores such as Bed Bath & Beyond. Mr. Alletto saidputting the produce in new stores will drive sales to $46 million this year.

Bedgear may be a harbinger of sales trends in other sleep products.Mattress sales have been flat, rising just 2.4% between 2012 and 2013,according to the Alexandria, Va.-based International Sleep ProductsAssociation—but new technology is expected to reach into that high-priced category soon.


What it does: Sells pillows, sheets and mattress protectors made withBedgear’s proprietary technology

Website:bedgear.comTwitter: @bedgearCEO: EugeneAllettoHeadquarters:Farmingdale, L.I. Three-year growthrate: 264% 2013 revenue:$36.7 million Profitable? YesLocal employees:70Total employees:70

Bedgear

How it grew: In 2009, former Villanovafraternity brothers Chris Kelly and RyanSimonetti joined forces to start Sentry

Centers, later renamed Convene, to fill the void leftin the recession as local companies unloaded theirinternal meeting spaces and New York hotels got outof the conference business.

They were onto something and built a steadybase of Fortune 500 clients. With four locations inManhattan and another 15,000-square-foot facilityin Tyson’s Corner, Va., that opened this past April,the duo—who were among Crain’s 2013 TopEntrepreneurs—plan to open an additional facilityin Washington, D.C., sometime in 2015.

The partners credit their continued growth tostate-of-the-art facilities, coupled with their ability tooffer full-scale catering and concierge services. “Ourcapabilities are vertically integrated,” Mr. Simonetti told Crain’s in

March. (His company, No. 1in last year’s Fast 50, declinedto participate in theapplication process for thisyear’s list.) “We canaccommodate more than 300people a day, and whatdifferentiates our businessmodel is how we are able tooffer a complete package.”

—tripp whetsell

What it does: Creates and runsurban conference centers targetedtoward corporate events

Website:convene.comTwitter: @ConvenePrincipals: ChrisKelly and RyanSimonettiHeadquarters:ManhattanThree-year growthrate: 265%*2013 revenue:$18.6 millionProfitable? YesLocal employees:46Total employees:96 (as of January2014)*Crain’s estimate

Convene

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37What it does: Finds its clients leads to potentialcustomers online

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MEETING OF THE MINDS: Chris Kelly (left) and Ryan Simonetti

How it grew: Presidentand founding partnerIra Zlotowitz has a

knack for incentives. As a rabbinicalstudent, he designed a game tomotivate sixth- and seventh-gradersto work harder at Hebrew studies,offering prizes like pizza.

He used asimilarly creativeapproach withhis 13-year-oldcommercialmortgagebrokerage, amajor mid-Atlantic playerin financingdeals under $50million. Hehired topproducers andpays commis-sions of as muchas 70%, versusthe typical 50%.

“This growthis coming fromgoing for qualityover quantity,”he said.

EasternUnion Fundingalso has a technology platform thatallows clients to closely track dealsand pinpoints banks that specializein particular kinds of loans.

Deal volume has grown to anexpected $3 billion this year from$1.2 billion in 2012. Broker headcount has declined to 45 from 100.

The company opened aManhattan office, one of five in theregion, to capitalize on aconstruction boom. The $3.6billion spent on renovation projectsin the city in the first half of 2014is on pace to top 2013’s total byabout 33%, according to a NewYork Building Congress analysis.Those loans are in Eastern Union’ssweet spot: The company’s averageloan is $7.5 million.


How it grew: In search of inspiration, Ryan Begelman, Bisnow’s CEO, headed inAugust to Burning Man, the edgy, youthful desert festival that is just one of thesurprising sources of ideas for the company’s un-boring business gatherings.

“We try and capture an ethos that is very open and honest,” explained Mr. Begelman.“Burning Man has done a brilliant job of getting people to communicate.”

The result of the open approach? Hundreds of balding baby-boom real estateexecutives packing rooms filled with pounding music, and perusing Bisnow’sgossipy niche newsletters.

Revenue comes in about equal thirds from event tickets, sponsorships andadvertising. Mitchell Schear, president of Vornado/Charles E. Smith, said the

division of giant realty trust Vornado uses Bisnow to reach people because of itscross-platform strength.

With 600,000 subscribers, Bisnow, founded in 2003 by attorney MarkBisnow, has a presence in 28 markets. Up next: expansion to San Diego,

Phoenix and Silicon Valley, in-depth leadership gatherings and arevamped website marking a foray into national topics.


EasternUnionFundingWhat it does: Brokerscommercial mortgages by connecting real estateprojects with lenders

What it does: Provides industry-specific emailnewsletters and events, mostly for the real estatecommunity, in targeted geographic markets

Website:bisnow.comTwitter: @bisnowCEO: RyanBegelmanHeadquarters:ManhattanThree-year growthrate: 258%2013 revenue:$13.8 millionProfitable? YesLocal employees:26Total employees:68

Bisnow Media

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Website:easternuc.comTwitter:@EasternUnionPrincipals: AvromForman, CEO; IraZlotowitz,president andfounding partner(above)Headquarters:BrooklynThree-year growthrate: 253%2013 revenue:$13.1 millionProfitable? YesLocal employees:21Total employees:105

50‘The bestworkers don'twant a full-timejob. We've builtour entirebusiness aroundthis contingentworkforce’

EVENT-FULL: Ryan Begelman

How it grew: Founded in2008, Intelligent ProductSolutions landed most of

its business fromMotorola at first, butnow that thecompany hasexpanded into newareas—most recentlymedical devices—that percentage hasdropped to about38%.

The companycredits its continuedrapid growth, inpart, to a stepped-up, more social-me-dia-savvy marketingeffort. And it’s ex-panding into otherareas, such as Seattle.

In 2013, IPS divested and closedElectroMotive Designs, which de-signed and sold a product to convertheavy-duty vehicle engines to electrichybrids, to focus more on core compe-tencies in product development servic-es, and took a loss. But it still has seenbusiness pick up and has moved intospacious new digs, keeping an eye onthe future.

How it grew: Many companies’ marketing departments havebeen slower than one might expect in adopting newtechnology.That’s changing fast—and that shift has helped

propel Mondo’s growth this past year, the second time it has appeared onCrain’s Fast 50 list.

The company launched a chief-marketing-officer group to provideconsulting and staffing services to client firms’ marketing departmentsthis year, said CEO Michael Kirven. Mondo is also opening two or threenew offices a year in local markets, where it is seeing 300% to 400%growth. Mondo’s clients range from New York City tech companies,such as GroupM, to Midwestern manufacturers.

Mondo—a 2013 Crain’s Best Place to Work—has also benefited froman underlying shift in the business world to contingent workers,especially in the technology space, where workers recognize that the morethey move around on a consulting basis, the more they’ll learn.Techconsultants get paid more than the rest of the tech workforce—an averageof more than $42 an hour nationwide, according to jobs site Dice.com.

“The best workers don’t want a full-time job,” Mr. Kirven said. “We’ve built our entirebusiness around this contingent workforce.”

How it grew:Squarespace has beena magnet for

investors, attracting $78 million incapital, including $40 millionbanked this year. What makes thiscompany—which made the Fast50 last year and Crain’s Best Placesto Work in 2012 and 2013—sohot?

For starters, it has made it acinch for anyone to build a website,providing hosting, 24/7 customerservice, and choices and featuresfrom e-commerce to mobilemanagement tools.The company,which more than doubled itsrevenue last year, doesn’t release user numbers, butCEO and founder Anthony Casalena—one of Crain’s2011 Top Entrepreneurs, said that there are “hundredsof thousands of [Squarespace] websites out there.”

Mr. Casalena & Co. are also making the processeasier, creating templates for specific industries andadding features that make it possible, for example, formusicians to interact with fans. With the recentoverhaul of Squarespace’s iOS and Android interfaces,users can manage their sites from a smartphone ortablet.

The next steps, said Mr. Casalena, include aninternational push and more marketing, enabled by therecent funding. Squarespace has an office in Dublin,and next year will start accepting internationalcurrencies.This year it became one of the smallestcompanies to advertise on the Super Bowl broadcast,which was viewed by more than 111 million people.

“As a company, we’re ahead right now, and we needto make sure the message gets out there to as manypeople as possible in a cost-efficient way,” said Mr.Casalena.

How it grew: More than a decade after pioneering the conceptof cost-per-click online advertising, Google still hasn’tconquered one major obstacle: how to close the sale.

That became the motivation for ad-tech veteran and two-timeentrepreneur Josh Reznick to find a better solution. His company,Datalot, created a “pay-per-call” platform that allows online advertisersto bid for paying customers it has already prequalified.

Datalot’s growth reflects its ongoing focus on acquiring clients in theinsurance and home-services industries. It has attracted clients rangingfrom Liberty Mutual insurance to window and door maker AndersonCorp.

By Mr. Reznick’s account, the business model has helped clients of allsizes—from big publishers to tiny firms—and has kept them flocking.“We can have small businesses that come in and put their credit card inand say, ‘I want to buy one phone call today,’ along with larger companiesthat want to spend a lot more,” he said. “This is something that has beenimpossible until now.”

SquarespaceWhat it does: Provides tools and templates tobuild websites and conduct e-commerce

Website:squarespace.comTwitter:@SquarespaceCEO: AnthonyCasalenaHeadquarters:ManhattanThree-year growthrate: 214%2013 revenue: $30 million to $40millionProfitable?Breaking even on acash-flow basisLocal employees:260Global employees:360

Mondo What it does: Provides tech consulting and staffingservices

Website:mondo.comTwitter:@mondo_agentsCEO: MichaelKirvenHeadquarters:Manhattan andBostonThree-year growthrate: 223%2013 revenue:$53.7 millionProfitable? YesLocal employees:70Total employees:300

IntelligentProductSolutions

What it does: Runs an online marketingplatform for companies looking toacquire customers immediately

Website:datalot.comTwitter: @DatalotCEO: Josh ReznickHeadquarters:BrooklynThree-year growthrate: 239%2013 revenue:$20.1 millionProfitable? NoLocal employees:50Total employees:70

Website:intelligentproductsolutions.comTwitter:@ipsdesignersPrincipals: MitchMaiman, CEO;Paul Severino,COOHeadquarters:Hauppauge, L.I.Three-year growthrate: 218% 2013 revenue:$13.4 millionProfitable? NoLocal employees:60Total employees:63

Datalot

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How it grew: Larry Petretti started his interior-construction firm,Petretti & Associates, at the least opportune moment: duringthe depths of the recession in 2010,when the office-leasing

transactions that usually spur the need for his services tanked.“People said I was out of my mind,” Mr. Petretti said.But Mr. Petretti saw the lull as the perfect moment to begin building

his own business with his longtime colleague Dave Foncello, son RichPetretti and son-in-law Joseph Goubeaud. When the leasing marketbegan to pick up again, the leap paid off, and Mr. Petretti had the piecesin place to put his long résumé at top interior firms like Structure Toneand Hunter Roberts to work. He quickly won marquee clients that fueledthe company’s speedy growth from just a handful of employees to nearly40 people and a projected $75 million in revenue for 2014.

The young company’s biggest break came two years ago, when it gotthe job to build out 15 floors, totaling 360,000 square feet of offices, for

Bank of America at 114 W. 47th St., which at $30million has been its largest assignment to date.Petretti also has done interiors for corporations suchas Canon, Avon, Aon, Visa and CBS.

Interior construction can be a cyclical businessbecause tenants generally need to build offices onlywhen they lease new space, which accelerates or slowsdown based on the economy. Mr. Petretti has gottenaround that by focusing on clients in diverse industriesand by developing specialties that are in demand.

Mr. Petretti, 59, worked in construction for 40years. He saw starting his own firm as a way to pass onhis success and contacts to his son and son-in-law and to the young poolof employees at the firm. “This is not something they’ll just inherit,” hesaid. “They’re building this company with me.”

Petretti & Associates Website:petretti.netTwitter:@Petretti_TweetsPresident and CEO:Larry PetrettiHeadquarters:ManhattanTwo-year growthrate: 219% 2013 revenue:$62.1 million Profitable? YesLocal employees:40Total employees:40

42

How it grew: Jonathan Segal has been a hotcommodity in the restaurant and hospitality industrysince he opened the Tenjune club in the meatpacking

district—where the STK steakhouse is now—in 2010. Hisreputation for creating fun places that attract crowds and buzzhelped him negotiate great lease deals during the recession.

The company’s holdings include the popular STK, witheight locations now open, including two in New York City.Thehospitality division provides the food and beverage service forcasinos and hotels including the Gansevoort Park Avenue

Last fall, One Group went public, merging with CommittedCapital Acquisition Corp., a shell company that paid $28.8million; institutional investors put in $15.5 million. STK isgrowing, said Mr. Segal, because it is more than a steakhouse.It’s an all-in-one club geared toward women, where guests caneat, drink and listen to music.

By the end of 2015, STK restaurants will be open inOrlando, Chicago and Milan. A more affordable and casualversion of the eatery, STK Rebel, is expected to open in Miami next year.

—eilene zimmerman

What it does: Global hospitality company with 21 restaurants openor under construction in the U.S. and London

The One Group Hospitality

Website: togrp.comTwitter:@theONEGroupUSPrincipals: JonathanSegal, CEO; JohnInserra, COO; SamGoldfinger, CFO;Celeste Fierro,senior vicepresident Headquarters:Manhattan Three-year revenuegrowth: 204% 2013 revenue:$126.2 millionProfitable? Yes Local employees:660Total employees:1,500

45

—tripp whetsell

—judith messina

What it does: Provides interior-constructionmanagement services

What it does: Provides one-stopshopping for engineeringservices delivered by a team ofveteran professionals

43 MENU MAESTRO: Withhis restaurants thriving,Jonathan Segal took theOne Group public last fall.

—daniel geiger


—anne field


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MR. INSIDER: Larry Petretti

How it grew: With a master’s degree inpublic health from Yale, Maneesh Goyalhardly seemed like the ideal candidate

when it came to throwing a New Year’s Eve party forrapper Sean “Diddy” Combs. Yet that’s precisely whathappened when Mr. Goyal was learning the ropesdoing freelance grunt work at local corporate eventsaround New York in 2001. He had been trying to turnhis secret passion for party planning into a career, afterspending two unfulfilling years in the nonprofit sector.

One of the events he worked on was Mr. Combs’MTV Music Awards after-party.This unlikelymeeting not only led to the opportunity of puttingtogether the rap mogul’s New Year’s soiree in 2002,but it also turned into a launchpad for Mr. Goyal’sown event company, MKG. Mr. Goyal founded thefirm out of his Manhattan apartment a year later.

That was in 2003.These days, MKG has offices inSoHo, Los Angeles and Chicago that create high-profile branding and product-launch events for America’s biggest firms.

Describing what it does as “using experiential marketing to helpcompanies connect faster with customers by blasting messages fromevery mobile device and street corner,” MKG has managed long-termcampaigns for many high-profile firms. Clients have included Delta AirLines, NBCUniversal, Audi and Evian, as well as adding the ClintonGlobal Initiative more recently.

As the agency continues to expand, Mr. Goyal, 39, said that hisyouthful staff will be pivotal to future growth. “Most people here are intheir 20s and 30s, and they are also the target market that we want toengage with,” he said. “We bring the millennial slant to the work we’redoing, and that comes out. Even when we’re working with brands likeChase, we’re looking at fresh new approaches that can only happen whenyou surround yourself with younger people.” —tripp whetsell

MKG

50What it does: Creates eventsto market brands

How it grew: Shutterstock continues toreinvent its signature stock photo business,adding video, music and online education to

its arsenal.The strategy is delivering consistent growthto this homegrown company, which had 100 milliondownloads in 2013, 32% more than the previous year,and 900,000 paying customers, up from 750,000 in2012. CEO Jon Oringer is predicting sales this year willhit $325 million.

“We’re constantly thinking about what we shouldlaunch next and what we should build, what do ourcustomers need and how can we leverage our currentlist,” said Mr. Oringer.

As Mr. Oringer ponders the next move, Shutterstockis expanding geographically with new offices in Paris, Berlin, London,Denver and San Francisco. It is also adding services, such as WebDam, aMarch 2014 acquisition that helps customers manage and distribute imagesand other digital content.

Customers are also leading the way.“We’re finding that people are using our images in ways they didn’t

before, in [ways] that didn’t exist five years ago, like the coffee shop on thecorner using images to sell through Facebook,” said Mr. Oringer.

—judith messina

How it grew: As an electrician’s daughtergrowing up during Staten Island’s 1960sbuilding boom, Shelby Johnson was always

fascinated by construction. Yet actually forging a careerin this largely male-dominated profession didn’t comeeasily, as she quickly discovered while she was the onlyfemale construction-engineering student at Texas TechUniversity.

Nevertheless, she stuck with it. After graduating in1986, she became a project manager in 1991 forManhattan-based Theodore Williams Construction, anow 42-year-old Manhattan-based firm specializing incorporate interiors.

Less than a decade later, she became president andby 2001 was the principal owner.Today, her company is not only one of thecity’s fastest-growing construction companies, it’s also one of the fewowned and operated by a woman.

Ms. Johnson said that the company’s continued success has comeprimarily from repeat business, with more than 90% of its new projectsbeing generated by such longstanding clients as Rudin Management, EstéeLauder, the Blackstone Group, SUNY, Reuters America and Bristol-MyersSquibb.

“We do a great job, people refer us, and that’s what makes us stand out,”said Ms. Johnson. “Integrity is part of our logo, and in this business thatmakes a difference.”


Theodore WilliamsConstruction What it does: Provides commercialcontracting and construction services

Website: twcc-llc.comTwitter: NoneCEO: ShelbyJohnsonHeadquarters:ManhattanThree-year growthrate: 189%2013 revenues:$25.5 millionProfitable? YesLocal employees:30Total employees:30

Shutterstock What it does: Sells stock photos,video and music to adagencies, businesses and othersubscribers

Website:shutterstock.comTwitter:@ShutterstockCEO: Jon OringerHeadquarters:Manhattan Three-year growthrate: 184% 2013 revenue:$235.5 millionProfitable? YesLocal employees:350Global employees:480

VISIONARY: Jon Oringerhas expandedShutterstock’s focusbeyond stock photos.

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How it grew: Withdemand foralternative energy

rising, OnForce Solarrecently hired its first full-timerecruiter.Thecompany,which hasa trackrecord ofhiringlocalresidents,expects todouble itshead countin 12months.

“Solar installations arequite favorable, with the priceof solar equipment falling asenergy costs are rising,” saidCEO Charles Feit, a Crain’sTop Entrepreneur in 2012.

Meanwhile, the sun hasbeen shining on thecompany’s fundraisingefforts. Since 2012, OnForceSolar has received from theNew York State EnergyResearch and DevelopmentAuthority more than $20million to develop and buildlarge solar installations in thestate.

This past spring, thecompany announced it wastapping funds fromNYSERDA to build a largesolar installation on a cappedlandfill in West Nyack—thefirst such project to becreated on top of landfill inNew York state. Theinstallation will generatesolar energy that is expectedto save taxpayers as much as$4 million over 30 years.

At the same time,OnForce is going afterresidential work. It hasalready opened an office onStaten Island to concentrateon such solar developmentthere.


Website:onforcesolar.comTwitter:@OnForceSolarCEO: Charles FeitHeadquarters:BronxThree-year growthrate: 170%2013 revenue:$24.9 millionProfitable? YesLocal employees:88Total employees:100

OnForceSolar

—tripp whetsell

What it does: Designs,develops, finances andmaintains solar-powerinstallations

How it grew: For Blue Fountain Media, aWeb development firm and onlinemarketer, recent growth has come at

somewhat of a cost. In April, CEO Gabriel Shaooliandecided to stop working on jobs that go for less than$25,000, a revenue stream that “accounted for 10% ofour revenue but 30% of our time,” he said.

Today, the number of sales Blue Fountain closeseach month is down, but the dollar value of new workis trending higher—from $25,000 to $50,000,mostly—and employees are focused on hammeringout longer-term relationships with clients. “Even ifthey don’t do something, they will add a member tothe team who will figure it out,” said Simon Chkifati,CEO of Manhattan car-service firm Luxor Limo, alongtime Blue Fountain client that has the marketer developing a newWeb-based app. Blue Fountain has also landed more than 100 newaccounts during the past year, including Web design work for the PenguinGroup, CareerGlider.com, CBS Outdoor and RR Donnelley.

—maggie overfelt

Website:bluefountainmedia.comTwitter: @BFMwebCEO: GabrielShaoolian Headquarters:ManhattanThree-year growthrate: 167%2013 revenue:$16.2 millionProfitable? Yes Local employees:87 Total employees:181

4948

INDEX

Aden + Anais (No. 30) ..............................................26AlphaSights (No. 13) ..............................................21AppNexus (No. 9) .................................................... 20 Babyganics (No. 33) ................................................27Bedgear (No. 37) ......................................................27Bisnow Media (No. 38) ............................................28Biz2Credit (No. 25) ..................................................24Blue Fountain Media (No. 49) .................................. 30Borderfree (No. 17)....................................................21Business Insider (No. 32) ........................................26BuzzFeed (No. 8) ......................................................20Cantor Commercial Real Estate (No. 1) ..................16Convene (No. 36) ....................................................27 Datalot (No. 40) ...................................................... 29Eastern Union Funding (No. 39) ................................28 Fluent (No. 15) ........................................................21 GWHA (No. 34) ........................................................27 Integral Ad Science (No. 7) ......................................20 Intelligent Product Solutions (No. 43)........................29 Kaltura (No. 18) ........................................................20 Kemp Technologies (No. 27) ....................................25Liberty Blue Group (No. 16) ......................................21LiveIntent (No. 2) ....................................................18 Madison Logic (No. 35) ............................................ 27Marketsmith (No. 10) ..............................................20

Maxymiser (No. 26) ..................................................25McKissack & McKissack (No. 24) ............................24MediaMath (No. 21) ................................................22MKG (No. 50) .......................................................... 30MobileFuse (No. 29) ................................................ 26Mondo (No. 41) ........................................................29MongoDB (No. 6) ......................................................18NeoStem (No. 4) ......................................................18OnDeck (No. 19) ......................................................20The One Group Hospitality (No. 45) ........................ 29 OnForce Solar (No. 48) ............................................ 30Petretti & Associates (No. 42) ..................................29 Refinery29 (No. 12) ................................................21 Regeneron (No. 28) ..................................................26 Shutterstock (No. 47) .............................................. 30Squarespace (No. 44) ..............................................29 StartApp (No. 3) ......................................................18Tapad (No. 11) ..........................................................20 Theodore Williams Construction (No. 46) ................30Thrillist Media Group (No. 23) ..................................24 Tough Mudder (No. 5) ..............................................18 Tower Legal Solutions (No. 22) ................................22 Walsh Electrical Contracting (No. 31) ...................... 26 Work Market (No. 20) .............................................. 22 Yext (No. 14) ............................................................21

COMPANY (RANK NO.) PAGE COMPANY (RANK NO.) PAGE

BlueFountainMediaWhat it does: Offers digitalmarketing services

Website:thisismkg.comTwitter: @thisismkgCEO: Maneesh K.GoyalHeadquarters:ManhattanThree-year growthrate: 163%2013 revenue:$24.9 millionProfitable? YesLocal employees:68Total employees:82

BY MATTHEW FLAMM

In the four years since Jeffrey Leven-thal co-founded Work Market, thefreelance-workforce managementprovider has never turned a profit,not even with nearly $31 million insales last year and more than 600%growth since 2011. And Mr. Leven-thal, who is chief executive, has noidea when the firm will make money.

Funny thing is, Work Market isin good company.

Among the firms in Crain’s Fast50 list,16 describe themselves as un-profitable in their last full year of op-eration. By comparison, the 2013list had four unprofitable businessesand four that did not disclose prof-itability. Two years ago, the Fast 50had five money-losing companiesand three undisclosed.

Observers say this year’s surge isno accident. More companies thanever are planting a digital stake innew markets and spending moneyin hopes of making it—sometimedown the line.

The idea is to beat out competi-tors and become the dominant play-er in their field. Venture capitalistsare funding these rapid rollouts, andWall Street—where investors seefast-growing money-losing startups

as more valuable investments—isrewarding them.

Some investors, however, haverecently raised alarms about easymoney and too-fast burn rates. Butentrepreneurs running rapidlygrowing companies say that at thisstage in their business, they havebigger worries than profits.

“Once you have the product/market fit, you want to pour gas onthe fire and go,” Mr. Leventhal said.“The cost of not doing it means thefuture of your company.”

Right now, he and his investors,which include SoftBank and UnionSquare Ventures, are mainly keep-ing an eye on sales growth,customerchurn and profit margins for WorkMarket’s services. Meanwhile, thecompany—ranked No. 20 on theFast 50 list—is running through the$10 million it raised last year.

Signs of a bubble?Despite concerns about compa-

nies spending too freely,Mr.Leven-thal and others reject comparisonsto the dot-com boom,which was thelast time startups plowed throughcash without profits in sight. NewYork’s first wave of Internet compa-nies were betting on a market thatdidn’t yet exist, while current start-ups are meeting the needs of cus-tomers whose operations have shift-ed to the Web and are now movingto the cloud.

Entrepreneurs also now employmetrics that they and their investorssay give a good sense of whether afast-growing company is sustain-

able. A key indicator is the degree towhich a customer’s “lifetime value”exceeds the cost of acquiring thatcustomer.

In the world of enterprise orlarge-business software, wherecompanies have lengthy orderingcycles, it can take months for a newsalesperson to establish a pipelineand six more months to close a deal.That means it could be a year ormore before the salesperson isbringing in enough revenue to cov-er salary and overhead.

But it doesn’t make sense for com-panies to wait until they’ve got the

money in hand to ramp up. As longas salespeople are delivering, thesurest route to long-term profitabili-ty is to continue hiring, build a cus-tomer base and grow market share.That’s what investors want to see.

“If a company is an inherentlyhigh-margin company, then grow-ing rapidly, expanding your cus-tomer base and spending on salesand marketing such that you’re run-

ning an operating loss is not just ac-ceptable, it’s preferable,” said RogerEhrenberg, managing partner atManhattan-based venture-capitalfirm IA Partners.“There is an inher-ent land grab in many industries.The first mover gets the lion’s shareof rewards.”

Mr. Leventhal—who has found-ed and sold five tech companies—may be keeping close watch overWork Market, but that’s not to saythat every startup is on the righttrack. Prominent investors Bill Gur-ley of Benchmark and Fred Wilsonof Union Square Ventures havevoiced worries recently aboutfounders spending too freely withoutthinking about profitability—oneoutcome of a marketplace in whichVC money is so readily available.

Funding raceIn the second quarter of 2014,

nationwide venture-capital spend-ing totaled $13.88 billion, making itthe biggest quarter since 2001, ac-cording to database CB Insights. InNew York, investment totaled $3.55billion through the first ninemonths of the year—a 29% spikeover all of 2013.

One expert says that along withland grabs for market share, there isnow an arms race in funding.

“If you have a competitor whoraises a lot of money, then you needto raise money as well, and the equi-librium just shifts and shifts,” saidVincent Ponzo, director of the cen-ter for entrepreneurship at Colum-bia Business School.“And it may not

be the smart thing to do,because in-stead of focusing on [operations]and revenue, people are focused onraising money.”

Complacency is another danger,says Ron Yekutiel, co-founder andCEO of open-source video platformKaltura, which is ranked No. 18 onthe Fast 50 list. The unprofitablecompany, which raised $47 millionin a Series E round in February, had$29 million in revenue last year andhas grown 639% since 2010.

He periodically shakes upKaltura—a process he likens to awhale coming up for air afterplumbing the depths for food—andbrings it close to break-even.

“When startups behave in a waythat’s not attuned to profit, it couldcause people to start getting enti-tled,” Mr. Yekutiel said.

In the third quarter of last year,the company cut expenses and laidoff 15 people whose “execution” wasnot in the top tier, he said, in orderto reduce losses and bring costsmore in line with revenue, if onlytemporarily.

“You close the gap and prove toyourself it can be a sustainable busi-ness,” he said. “It causes the entirecompany to be a lot more careful inhow it manages its money.Then wetake another deep dive.” �

go to the leader.”Mr. Ryan, who was chief execu-

tive of DoubleClick when it wassold to a private-equity firm for $1.1billion in 2005, founded two mem-bers of the city’s unicorn club, GiltGroupe and MongoDB. Gilt, val-ued at $1 billion at its last financing,in 2011, laid off about 10% of itsstaff, or around 90 people, in 2012and began retrenching.

The company does not commenton valuations, but a spokeswomansaid sales growth picked up in 2013as the company generated cash fromoperations for the first time, andthat head count is now higher thanit was before the layoffs.

MongoDB, a database manage-ment provider, is ranked sixth on theFast 50 list,with a reported $62 mil-lion in revenue in 2013 and morethan 4,000% growth since 2010.

Startup scene maturesOther New York companies with

newsworthy valuations include ViceMedia ($2.5 billion), ZocDoc ($1.6billion), AppNexus ($1.2 billion),BuzzFeed ($850 million) and Oscar($800 million). OnDeck is expectedto go public in the next few monthswith a valuation of $1.5 billion, ac-cording to The Wall Street Journal.(E-commerce site Fab was valued at

$1.2 billion at its last funding roundin 2013, but soon after began therounds of layoffs that made thestartup symbolic of all that can gowrong when companies raise easymoney at high valuations in an over-heated market.)

And then there’s the stock-image marketplace Shutterstock,which went public two years agowith a valuation of $558 million andnow has a market cap of $2.5 billion.

The growth in numbers reflectsthe gradual maturing of a startup

scene that started bubbling in themid- to late 2000s, and took off afterthe collapse of Lehman Brothers in2008 pushed the city to look beyondWall Street for its economic future.

There has also been an influx ofmoney and investors searching forhot startups in recent years. Themore successful companies havebeen moving through the alphabetof funding rounds, at higher andhigher valuations.

But while there may be frothi-ness in the market, New York is get-

ting a chance to deepen its bench.“There’s been a lot of talent in

New York that’s good at gettingcompanies off the ground,” saidAnand Sanwal, CEO of venture-capital database CB Insights. “Ifthings go right, there will be peoplewho have taken companies throughtheir entire life cycle, and will go onto start new companies or join thenext high flier and help them scale.”

Despite all this growth,however,at least one observer of the NewYork scene argues that those valua-tions may tell us very little, and thatthe city has a long way to go beforeit ranks as the No. 2 tech contenderafter Silicon Valley.

“The Big Apple has been moretalk than show for quite some timenow,” Fortune.com columnist DanPrimack wrote recently, in a letter toNew York City titled, “Are we doneyet with New York tech hype?”

He noted that for all its startupsvalued at $1 billion or more, NewYork has had just one billion-dollarexit, Tumblr, while Seattle and per-petual rival Boston have had many.

“New York is not the next SiliconValley,” Mr. Primack concluded.“It’s not even the next Seattle.”

Local members of the club saythat their valuations mean a lot—especially when compared with someWest Coast startups, like Snapchat,which has a $10 billion valuation,millions of users and no revenue.

“In New York, most of the com-panies that have attracted high valu-

ations have built really strong fran-chises that support those valuations,”said Michael Rubenstein, presidentof ad-tech giant AppNexus, rankedeighth on the Fast 50,with reported-ly $130 million in revenue in 2013and nearly 3,000% growth since2010. “In Silicon Valley, it’s muchmore based on speculation aboutwhat the future might bring.”

Future growthOthers point out that the areas in

which New York ranks second toSilicon Valley (and ahead of Boston)are the ones that point to futuregrowth—the amount of venture-capital investment, for instance, andthe number of deals.

Through the first nine months ofthis year,VC spending on New Yorktech companies totaled $3.55 bil-lion—29% more than in all of 2014,according to CB Insights. VCspending in Massachusetts so farthis year has come to $2.47 billion.

“The number of billion-dollar ex-its in a market is a lagging indicatorof innovation and market potential,”said Jules Maltz, a general partner atInstitutional Venture Partners, aWest Coast firm whose New YorkCity investments include Yext andOnDeck. “I expect New York to de-liver more exits over $1 billion thanany other market except Silicon Val-ley in the years to come.” �



‘Once you havethe product mix,you want to pourgas on the fireand go’

50

Billion-dollar startups take hold

So much growth, yet so few profitsEntrepreneurs plowrevenue, fundinginto their companies to gain market share

LISTEN to a discussion at CrainsNewYork.com/podcasts

NEW YORK’S HIGH FLIERSRanked by valuation as of most recent investment.� Money raised � Valuation

$2.5B

$1.6B

$1.5B*

$1.2B

$1.2B

$1.2B

$1.1B

$850M

$800M

$688M

*Reported value at expected IPO. Sources: Crunchbase, Wall Street Journal/Dow Jones VentureSource, reports

Vice Media

ZocDoc

OnDeck

AppNexus

Fab

MongoDB

Gilt

BuzzFeed

Oscar

Etsy

$580M

$97.9M

$409M

$225.5M

$336.3M

$231.1M

$236M

$96.3M

$150M

$97.3M

It is no secret that major conferences all tend to hap-pen around this time of year. People are swamped, jump-ing from one conference to another, spending more time in the airport than they care to admit. If you are one of the thousands plagued by over-exposure to convention centers, long flights and late nights spent networking, here are a few tips to help you survive.

Plan AheadOne of the reasons that conference season can be so stressful is because attend-ees bounce from one event to another, with little time to plan ahead. There is a comfort to following a usual rhythm and schedule, and being without that com-fort can add to the feeling of chaos. One of the best things you can do to make it through the season is to

be organized ahead of time. Make use of your downtime on planes by planning work you can do offline. Use apps like TripIt, GateGuru and Packing Pro to help stream-line your trips and keep you organized on the go. Taking the time to download a few apps could save you hours of useless line waiting, missed flights and other travel head-aches. Finally, the Google Hangouts program will help you stay in touch with kids, family, & friends from afar. It’s a great way to have some face time and make your time apart feel much shorter.

Eat WellEating healthfully in general is always a good idea, but it is especially important while traveling to drink lots of water and hone in on healthy places to grab a quick bite. Hotel breakfast buffets do not always make this easy, but you should do whatever you can to avoid carb-heavy and energy-drain-ing foods. When you travel, bring granola bars or other healthy snacks with you and plan your meals in advance, if you can. Ask convention organizers or your hotel’s receptionist about the hotel restaurant and local places where you might be able to grab a bite quickly. Conven-tion centers are known for having horrible food options, so use that as an excuse to leave at lunchtime to find a local eatery. The fresh air will

make you feel better and give you energy to attack the rest of the day inside at the conference. Can’t get away? Sometimes asking for a vege-tarian option will provide you with a healthier meal!

Give Yourself a BreakThe reality is, conference season is stressful and there are certain things you simply cannot avoid, so give your-self a break when you can. When work and travel stress you out, remind yourself that the season will be over soon. Don’t be too hard on your-self. Your inbox might pile up a bit, you may get a bit further behind on projects, but the holidays are coming soon and you will have at least a little bit of down-time to catch up. While you are on the road, prioritize yourself. Fitting in a quick exercise break, a healthy meal or simply a morning of uninterrupted emailing will make your entire day feel more under your control. And if all does go crazy, wait until you get home to tackle the problem.

Conference season is a won-derful time to reconnect with industry colleagues, learn from new educators and trav-el the world. Implementing these simple tactics will help you enjoy this time of year, so don’t let travel woes, lack of energy and projects back home drain you and stress you out.

A Special Advertising Supplement to Crain’s New York Business

Liz King

CEO, Chief Event Specialist, Liz King EventsCo-Founder, PlannerTech Event Technology ShowcaseExecutive Producer, Event Alley Show

Reach me, [email protected] me, Twitter.com/lizkingevents

Surviving Conference Season

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NOVEMBER

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A Special Advertising Supplement to Crain’s New York Business

Please tell us a bit about the Hard Rock Café. Your spaces are so versatile. What would you like event planners to know about you? The biggest challenge we have with our space is that people do not know that we can accommodate a theater-style meeting for 300 people with built-in staging, lighting, projector, 26-foot-drop-down screen and enough microphones to host a panel of 10, as well as a vari-ety of other set ups and sizes. The Live Venue is the perfect setting for events with 200 – 500 guests to enjoy cocktails, dinner, and still have plenty of room to dance. We also have our New York Room, which can host meetings with 25 to 100 guests, and features built-in screens, projectors and audio. All a planner has to do is set up a meeting and bring a laptop and we can take care of the rest. We can host up to 1,100 people in the full venue, or do an intimate seated din-ner for 250 while still having a full stage for a performance or presentations.

What are some unique things that planners have done with your space? One of the most unique spaces that we have here is the historic marquee that is in the front of our building. It is a great space for a small cocktail party in the middle of Times Square without the crowds, as well as an amazing marketing platform. For instance,

Charmin came to us looking for a way to market their new softer toilet paper. We sat with them and our creative team and came up with the idea to transform ourselves into the “Soft Rocks Café” and build a tow-ering stage three stories above Sev-enth Avenue, with pillars wrapped in giant rolls of toilet paper. To make it even better, Kenny G performed a surprise concert on top of that stage just to show that “Soft Rocks.” We also host a number of trade shows each year, from US Foods show, with over 100 vendors and 3,000 guests throughout the day, to smaller shows with 25 exhibitors and a few hundred guests, and everything in between.

Music plays a huge role in the life of the Hardrock Cafés. Have you seen any event planners creatively incorporate music? Many of our events have a musical element to them. It could be a small background

band playing softly for a cocktail party, or Paul Simon or Billy Joel (both of whom have played here) doing a concert for a charity.

What do you pre-dict for the future of event menus? I think the future of event menus is here now, and it is being able to provide items for those with food al-lergies and dietary restrictions. One of the best things about working with our venue is that we have

great flexibility with menus and always look to provide event planners with diverse items so all guests can enjoy themselves.

I know you are also have a location at Yankee Stadium. What are some benefits for planners in doing events at the stadium? I would say the biggest bene-fit to planning an event at the Hard Rock at Yankee Stadium is the amazing ability to have tours of the stadium for you and your guests.

Taking Stock of Hard Rock

Out of Office is published by Crain’s Custom Connections Studio. For more information, please contact Trish Henry at (212) 210-0711 or [email protected].

An interview with John Pasquale,Director of Sales and Marketing

For more information on

OUT OF OFFICEplease contact

Irene Bar-Am at (212) 210-0133 or [email protected]

View the digital edition at crainsnewyork.com/OOO


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Notice of Formation of RAFFLESBISTRO LLC. Arts. of Org. filed withSecy. of State of NY (SSNY) on09/04/14. Office location: NY County.SSNY designated as agent of LLCupon whom process against it may beserved. SSNY shall mail process tothe LLC, 511 Lexington Ave., NY, NY10017. Purpose: Any lawful activity.

Notice of Formation of 3861 Route 22Holdings LLC. Arts. of Org. filed withNY Dept. of State on 8/29/14. Officelocation: NY County. Sec. of Statedesignated agent of LLC upon whomprocess against it may be servedand shall mail process to: c/o TheCommunity Preservation Corp., 28E. 28th St., 9th Fl., NY, NY 10016,principal business address. Purpose:any lawful activity.

Charles K. Goldner, LLC. Arts. of Org.filed with Secy. of State of NY (SSNY)on 05/26/99. Off. loc.: NY Co. SSNYdes. as agent of LLC upon whomprocess may be served. SSNY shallmail process to 155 West 72nd St., NewYork, NY 10023. Purpose: General.

Amalgamated Life InsuranceCompany is committed to preventing fraud in regard to theinsurance coverage it issues.Therefore, Amalgamated Life, asrequired by the New York StateDepartment of Financial Servicesmakes the following statement:

Any person who knowingly andwith intent to defraud any insurance company or other person, files an application forinsurance or statement of claimcontaining any materially falseinformation, or conceals for thepurpose of misleading, information concerning any factmaterial there-to, commits afraudulent insurance act, whichis a crime and shall also be subject to a civil penalty not toexceed five thousand dollars andthe stated value of the claim foreach such violation.

Anyone knowing of a fraudulentact should call Ellen Dunkin at:

Amalgamated Life Insurance Company

333 Westchester AvenueWhite Plains, NY 10604

800-624-5844

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JERICO LLC. Art. of Org. filed withthe SSNY on 08/14/14. Office: NewYork County. SSNY designated asagent of the LLC upon whom processagainst it may be served. SSNY shallmail copy of process to the LLC, 213West 35th Street, #400, New York, NY10001. Purpose: Any lawful purpose.

Notice of Qualification of MHRINSTITUTIONAL PARTNERS IV LP.Authority filed with Secy. of State of NY(SSNY) on 06/26/14. Office location: NYCounty. LP formed in Delaware (DE) on12/21/11. Princ. office of LP: 40 W. 57thSt., 24th Fl., NY, NY 10019. SSNYdesignated as agent of LP upon whomprocess against it may be served.SSNY shall mail process to the LP atthe addr. of its princ. office. Name andaddr. of each general partner areavailable from SSNY. DE addr. of LP:c/o Corporation Service Co., 2711Centerville Rd., Wilmington, DE 19808.Arts. of Org. filed with Secy. of Stateof DE, Dept. of State, Div. of Corps.,John Townsend Bldg., Dover, DE19901. Purpose: Any lawful activity.

MAXDELIVERY CAFE, LLC, Arts. ofOrg. filed with the SSNY on 09/04/2014.Office loc: NY County. SSNY has beendesignated as agent upon whomprocess against the LLC may be served.SSNY shall mail process to: Gilbride,Tusa, Last & Spellane LLC Attn: JMW,31 Brookside Drive, Greenwich, CT06830. Purpose: Any Lawful Purpose.

Notice of Formation of KRETCHMERSC LLC. Arts. of Org. filed with Secy.of State of NY (SSNY) on 9/10/14.Office location: NY County. SSNYdesignated as agent of LLC uponwhom process against it may beserved. SSNY shall mail process to:c/o The Kretchmer Companies LLC,350 Fifth Ave., Ste. 6900, NY, NY10118. Purpose: any lawful activity.

Notice of Qualification of BluehengeCapital Secured Debt SBIC, L.P.Authority filed with NY Dept. of Stateon 9/5/14. Office location: NY County.Princ. bus. addr.: 152 W. 57th St., 20thFl., NY, NY 10019. LP formed in DE on1/29/14. NY Sec. of State designatedagent of LP upon whom processagainst it may be served and shallmail process to: c/o CT CorporationSystem, 111 8th Ave., NY, NY 10011,regd. agent upon whom process maybe served. DE addr. of LP: TheCorporation Trust Co., 1209 Orange St.,Wilmington, DE 19801. Name/addr.of genl. ptr. available from NY Sec. ofState. Cert. of LP filed with DE Sec.of State, 401 Federal St., Dover, DE19901. Purpose: all lawful purposes.

The Reddy Group LLC. Arts. of Org.filed with Secy. of State of NY (SSNY)on 08/27/14. Off. loc: NY County.SSNY des. as agent of LLC uponwhom process may be served. SSNYshall mail process to c/o RobinsonBrog, et al., Attn: Neil S. Goldstein,875 Third Ave., 9th Fl., New York, NY10022. Purpose: General.

PUBLIC & LEGAL NOTICES

Notice of formation of F.H. WadsworthLLC. Arts. Of Org. filed with Secy. OfState of NY (SSNY) on 8/19/14.Office location: NY County. SSNYdesignated as agent of LLC uponwhom process against it may beserved. SSNY shall mail process to:F.H. Wadsworth, 77 W. 85th Street,Suite 6E, New York, NY 10024.Purpose: any lawful activity.

TELECOMMUNICATIONS

6FOUR3 PRODUCTIONS, LLC, Arts.of Org. filed with the SSNY on06/25/2014. Office loc: NY County.SSNY has been designated as agentupon whom process against the LLCmay be served. SSNY shall mailprocess to: Chad Lewis, 401 E. 74thSt., Apt. 8M, NY, NY 10021. Purpose:Any Lawful Purpose.

ROYAL 202, L.L.C., Articles ofOrganization filed NY Sec of State(SSNY) 07/17/2014. Office in NEWYORK County. SSNY design. agentof LLC upon whom process may beserved. SSNY shall mail copy ofprocess to c/o ROYAL 202, L.L.C.,196 CANAL ST, 6TH FL, NEW YORK,NY 10013.

1355 AMSTERDAM REALTY LLC, adomestic LLC, filed with the SSNY on6/16/14. Office location: New YorkCounty. SSNY is designated as agentupon whom process against the LLCmay be served. SSNY shall mail processThe LLC, 1355 Amsterdam Ave., NY,NY 10027. General Purposes.

Notice of Qualification of 1901 FirstStreet Associates, LLC. Authorityfiled with Secy. of State of NY (SSNY)on 09/24/14. Office location: NYCounty. LLC formed in Delaware (DE)on 09/25/13. SSNY designated asagent of LLC upon whom processagainst it may be served. SSNYshall mail process to: NationalRegistered Agents, Inc., 111 EighthAve., NY, NY 10011. Address to bemaintained in DE: 160 Greentree Dr.,Ste. 101, Dover, DE 19904. Arts ofOrg. filed with the DE Secy. of State,John G. Townsend Bldg., 401Federal St., Ste. 4, Dover, DE 19901.Purpose: any lawful activities.

Notice of Conversion of Susan RealtyAssociates, a partnership, to SusanRealty Associates LLC. Certificatefiled with Sec. of State of NY (SSNY)on 5/11/06. Office location: NY County.SSNY designated agent of LLC uponwhom process against it may beserved and shall mail process to: c/oEd Dulchin, 170 7th Ave., NY, NY10011. Purpose: any lawful activity.

Notice of Formation of 368 THIRDLLC. Arts. of Org. filed with Secy. ofState of NY (SSNY) on 09/11/14. Officelocation: NY County. Princ. office ofLLC: c/o Continental Ventures, 641Lexington Ave., 24th Fl., NY, NY 10022.SSNY designated as agent of LLCupon whom process against it maybe served. SSNY shall mail processto the LLC at the princ. office of theLLC. Purpose: Any lawful activity.

NEVILLE DANCE THEATRE LLC, adomestic LLC, filed with the SSNYon 8/5/14. Office location: New YorkCounty. SSNY is designated as agentupon whom process against the LLCmay be served. SSNY shall mailprocess Brenda Neville, P.O. Box 1625,NY, NY 10101. General Purposes.

Notice of Qualification of KAZTRONIXLLC. Authority filed with Secy. ofState of NY (SSNY) on 08/29/14.Office location: NY County. LLCformed in Virginia (VA) on 10/26/01.SSNY designated as agent of LLCupon whom process against it may beserved. SSNY shall mail process toc/o Corporation Service Co., 80 StateSt., Albany, NY 12207-2543. VA addr.of LLC: 8260 Greensboro Dr., Ste.150, McLean, VA 22102. Arts. of Org.filed with Clerk of the CommissionCommonwealth of VA, Tyler Bldg.,1300 E. Main St., Richmond, VA23219. Purpose: Any lawful activity.

Notice of Qualification of ARCHospitality Portfolio I Owner, LLC.Authority filed with Secy. of State of NY(SSNY) on 09/25/14. Office location:NY County. LLC formed in Delaware(DE) on 07/23/14. Princ. office of LLC:106 York Rd., Jenkintown, PA 19046.SSNY designated as agent of LLCupon whom process against it maybe served. SSNY shall mail processto c/o CSC, 80 State St., Albany, NY12207. DE addr. of LLC: 2711Centerville Rd., Ste. 400, Wilmington,DE 19808. Arts. of Org. filed with DESecy. of State, Div. of Corps., 401Federal St., Ste. 4, Dover, DE 19901.Purpose: Any lawful activity.

Qualification of Blackstone PropertyPartners F.1 L.P. Authority filed withthe Sect of State of NY (SSNY) on9/4/14. Office Loc: NY County. LPformed in DE on 6/30/14. SSNY hasbeen designated as agent of LPupon whom process against it maybe served and shall mail process to:200 Bellevue Pkwy, Ste 210,Wilmington, 19809. DE address ofLP: 200 Bellevue Pkwy, Ste 210,Wilmington, 19809. Name/addr ofgenl ptr avail from SSNY. Cert of LPfiled with DE Sect of State, 401Federal St, Ste 4, Dover, DE 19901.Purpose: any lawful activity.

NOTICE OF FORMATION OF LIMITEDLIABILITY COMPANY. NAME:KATESHIN GALLERY LLC. Articles ofOrganization were filed with theSecretary of State of New York(SSNY) on 05/23/14. Office location:New York County. SSNY has beendesignated as agent of the LLC uponwhom process against it may beserved. SSNY shall mail a copy ofprocess to the LLC, c/o KateJunghee Shin, 170 East 80th Street,New York, New York 10075. Purpose:For any lawful purpose.

Notice of Formation of Trask Foods,LLC. Arts. of Org. filed with NY Dept.of State on 9/2/14. Office location:NY County. Princ. bus. addr.: 411 W.14th St., 4th Fl., NY, NY 10014. Sec.of State designated agent of LLCupon whom process against it maybe served and shall mail process to:CT Corporation System, 111 8thAve., NY, NY 10011, regd. agentupon whom process may be served.Purpose: all lawful purposes.

Notice of Qual. of VS 125 LLC, Auth.filed Sec'y of State (SSNY) 6/13/14.Office loc.: NY County. LLC org. inDE 5/6/14. SSNY desig. as agent ofLLC upon whom process against itmay be served. SSNY shall mailcopy of proc. to SHVO, 724 FifthAve., NY, NY 10019. DE off. addr.:160 Greentree Dr., Ste. 101, Dover,DE 19904. Cert. of Form. on file:SSDE, Townsend Bldg., Dover, DE19901. Purp.: any lawful activities.

Notice of Formation of GRO DEVLeasehold LLC, Art. of Org. filedSec'y of State (SSNY) 6/9/14. Officelocation: NY County. SSNY designatedas agent of LLC upon whom processagainst it may be served. SSNY shallmail copy of process to Ari BrombergGRO Dev., 521 W. 26th St., NY, NY10001. Purpose: any lawful activities.

Notice of Qual. of HighBrook IncomeProperty Fund II, LP, Auth. filed Sec'yof State (SSNY) 3/4/14. Office loc.:NY County. LP org. in DE 1/8/14.SSNY desig. as agent of LP uponwhom process against it may beserved. SSNY shall mail copy ofproc. to 680 Fifth Ave., 19th Fl., NY,NY 10019. DE off. addr.: CSC, 2711Centerville Rd., Wilmington, DE19808. Cert. of LP on file: SSDE,Townsend Bldg., Dover, DE 19901.Name/addr. of each gen. ptr. avail. atSSNY. Purp.: any lawful activities.

Notice of Qual. of Richfield DriggsHoldings, LLC, Auth. filed Sec'y ofState (SSNY) 6/18/14. Office loc.: NYCounty. LLC org. in DE 6/17/14. SSNYdesig. as agent of LLC upon whomprocess against it may be served.SSNY shall mail copy of proc. toSiegel & Reiner, Att: Irwin Siegel, 900Third Ave., NY, NY 10022. DE off.addr.: 160 Greentree Dr., Ste. 101,Dover, DE 19904. Cert. of Form. onfile: SSDE, Townsend Bldg., Dover, DE19901. Purp.: any lawful activities.

Notice of Qual. of Raven Asset-BasedOpportunity Fund II LP, Auth. filedSec'y of State (SSNY) 4/2/14. Officeloc.: NY County. LP org. in DE 4/1/14.SSNY desig. as agent of LP uponwhom process against it may beserved. SSNY shall mail copy of proc.to Att: Joshua Green, 110 Greene St.,NY, NY 10012. DE off. addr.: CSC,2711 Centerville Rd., Wilmington, DE19808. Cert. of LP on file: SSDE,Townsend Bldg., Dover, DE 19901.Name/addr. of each gen. ptr. avail. atSSNY. Purp.: any lawful activities.

Notice of Qual. of North 6th FundingLLC, Auth. filed Sec'y of State (SSNY)7/30/14. Office loc.: NY County. LLCorg. in DE 7/29/14. SSNY desig. asagent of LLC upon whom processagainst it may be served. SSNY shallmail copy of proc. to NRAI, 111 EighthAve., NY, NY 10011, the Reg. Agt.upon whom proc. may be served. DEoff. addr.: 160 Greentree Dr., Ste. 101,Dover, DE 19904. Cert. of Form. onfile: SSDE, Townsend Bldg., Dover, DE19901. Purp.: any lawful activities.

Notice of Formation of BICOM NY, LLC.Arts. of Org. filed with Secy. of Stateof NY (SSNY) on 09/18/14. Officelocation: NY County. Princ. office ofLLC: 823 11th Ave., NY, NY 10019.SSNY designated as agent of LLCupon whom process against it may beserved. SSNY shall mail process toJoseph S. Aboyoun, Esq., Aboyoun& Heller, L.L.C., 77 Bloomfield Ave.,Pine Brook, NJ 07058. Purpose:Automotive sales/service.

Notice of Formation of CRP AmsterdamAnnex LLC. Arts. of Org. filed withSecy. of State of NY (SSNY) on6/27/14. Office location: NY County.SSNY designated as agent of LLC uponwhom process against it may beserved. SSNY shall mail process to:c/o Castellan Real Estate Partners,1841 Broadway, Ste. 400, NY, NY10023. Purpose: any lawful activity.

Notice of Formation of CASHSmartwatch, LLC. Arts. of Org. filedwith Secy. of State of NY (SSNY) on09/05/14. Office location: NY County.SSNY designated as agent of LLCupon whom process against it maybe served. SSNY shall mail processto Nicole Lapin, PMB #207, 4201Neshaminy Blvd., Bensalem, PA19020. Purpose: Any lawful activity.

Notice of Qualification of ColemanFloor, LLC. Authority filed with NY Dept.of State on 8/7/2014. Office location:NY County. Princ. bus. addr.: 8020Arco Corporate Dr., Ste. 400, Raleigh,NC 27617. LLC formed in DE on12/22/1966. NY Sec. of State desig-nated agent of LLC upon whomprocess against it may be served andshall mail process to: CT CorporationSystem, 111 8th Ave., 13th Fl., NY,NY 10011. DE addr. of LLC: 1209Orange St., Wilmington, DE 19801.Cert. of Form. filed with DE Sec. ofState, 401 Federal St., Dover, DE19901. Purpose: all lawful purposes.

62 EDGECOMBE AVE LLC. Art. of Org.filed with the SSNY on 07/02/14. Office:New York County. SSNY designatedas agent of the LLC upon whomprocess against it may be served.SSNY shall mail copy of process to theLLC, 60 Paine Street, Lindenhurst, NY11757. Purpose: Any lawful purpose.

Formation notice of the limited liablitycompany (LLC). Name: JBR CONSULTINGGROUP, LLC. Articles of Organizationfiled with the NY Secretary of State(SSNY): August 22, 2014. Office: NewYork County. SSNY designated asagent of the LLC upon whom processagainst it may be served. SSNY shallmail copy of process to 610 West EndAvenue, Apartment 11B, New York, NY10024. Purpose: All lawful purposes.

WEXLER LEHRER & KAUFMAN PLLC.Art. of Org. filed with the SSNY on07/31/14. Office: New York County.SSNY designated as agent of thePLLC upon whom process against itmay be served. SSNY shall mailcopy of process to the PLLC, 6 E.39th Street, Suite 700, New York, NY10016. Purpose: For the practice ofthe profession of Law.

Notice of Qualification of 697 Fifth/2East 55th Street Manager LLC.Authority filed with NY Dept. of Stateon 10/2/14. Office location: NY County.Princ. bus. addr.: 210 Route 4 East,Paramus, NJ 07652. LLC formed in DEon 9/30/14. NY Sec. of State designat-ed agent of LLC upon whom processagainst it may be served and shall mailprocess to: c/o CT CorporationSystem, 111 8th Ave., NY, NY 10011,regd. agent upon whom process maybe served. DE addr. of LLC: 1209Orange St., Wilmington, DE 19801.Cert. of Form. filed with DE Sec. ofState, 401 Federal St., Dover, DE19901. Purpose: any lawful activity.

Notice of Qualification of Ocean LightProductions, LLC. Authority filed withSecy. of State of NY (SSNY) on05/27/14. Office location: NY County.LLC formed in Delaware (DE) on05/21/14. SSNY designated as agentof LLC upon whom process againstit may be served. SSNY shall mailprocess to: c/o Larry Wasserman,100 Universal City Pl., Bldg., 5121,Universal City, CA 91608. Addressto be maintained in DE: c/o 3500 S.Dupont Hwy, Dover, DE 19901. Artsof Org. filed with the DE Secy. ofState, John G. Townsend Bldg., 401Federal St., Ste. 4, Dover, DE 19901.Purpose: any lawful activities.


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41 West 68, LLC. Art. of Org. filed withthe SSNY on 11/17/11. Office: NewYork County. SSNY designated asagent of the LLC upon whom processagainst it may be served. SSNY shallmail copy of process to the LLC, c/oTrinidad Hidalgo, 80 Central Park West,Apartment 22F, New York, New York10023. Purpose: Any lawful purpose.

Notice of Formation of MAZL 138THLLC. Arts of Org filed with Secy ofState of NY (SSNY) on 11/6/13.Office location: NY County. SSNYdesignated agent upon whom processmay be served and shall mail copy ofprocess against LLC to principalbusiness address: 251 West 138thStreet, New York, NY 10030.Purpose: any lawful act.

NOTICE OF QUALIFICATION ofMEDLEY SMA ADVISORS LLC.Authority filed with Secy of State of NY(SSNY) on 8/08/14. Office location:NY County. LLC formed in DE on6/27/14. SSNY designated agent uponwhom process may be served andshall mail copy of process against LLCto: CORP SERVICE COMPANY, 80STATE ST, ALBANY, NY 12207.Principal business address: 375 PARKAVE, 33RD FLR, NY NY 10152. DEaddress of LLC:2711 CENTERVILLERD, STE 400, WILMINGTON, DE19808. Certificate of LLC filed withSecy of State of DE located at:Division of Corp, John G. TownsendBldg., 401 Federal St, Ste 4, Dover,DE 19901. Purpose: any lawful act.

NOTICE OF QUALIFICATION of MOFIII GP LLC. Authority filed with Secy ofState of NY (SSNY) on 8/11/14. Officelocation: NY County. LLC formed inDE on 3/27/14. SSNY designatedagent upon whom process may beserved and shall mail copy of processagainst LLC to: CORP SERVICECOMPANY, 80 STATE ST, ALBANY,NY 12207. Principal businessaddress: 375 PARK AVE, 33RD FLR,NY NY 10152. DE address of LLC:2711 CENTERVILLE RD, STE 400,WILMINGTON, DE 19808. Certificateof LLC filed with Secy of State of DElocated at: Division of Corp, John G.Townsend Bldg., 401 Federal St, Ste4, Dover, DE 19901. Purpose: anylawful act.

NOTICE OF QUALIFICATION of MOFIII MANAGEMENT LLC.Authority filedwith Secy of State of NY (SSNY)8/26/14. Office location: NY County.LLC formed in DE on 3/27/14. SSNYdesignated agent upon whomprocess may be served and shallmail copy of process against LLC to:CORP SERVICE COMPANY, 80STATE ST, ALBANY, NY 12207.Principal business address: 375 PARKAVE, 33RD FLR, NY NY 10152.DEaddress of LLC: 2711 CENTERVILLERD, STE 400, WILMINGTON, DE19808. Certificate of LLC filed withSecy of State of DE located at:Division of Corp John G. TownsendBldg,401 Federal St, Ste 4, Dover,DE 19901. Purpose: any lawful act.

BEE LIQUORS, LLC. Art. of Org. filedwith the SSNY on 05/26/05. Latestdate to dissolve: 12/31/2104. Office:New York County. SSNY designated asagent of the LLC upon whom processagainst it may be served. SSNY shallmail copy of process to the LLC, 225Avenue B, New York, NY 10009.Purpose: Any lawful purpose.

Notice of Formation of White CrestConsulting LLC. Arts. of Org. filedwith Secy. of State of NY (SSNY) on9/4/14. Office location: NY County.SSNY designated as agent of LLCupon whom process against it maybe served. SSNY shall mail processto: Davis & Gilbert LLP, 1740Broadway, NY, NY 10019. Purpose:any lawful activity.

PENN EQUITY GROUP LLC, Arts. ofOrg. filed with the SSNY on 07/23/2014.Office loc: NY County. SSNY hasbeen designated as agent upon whomprocess against the LLC may beserved. SSNY shall mail process to:21 E. 4th St., Ste 617, NY, NY 10003.Reg. Agent: Jaime Kurt Oriol, 21 E.4th St., Ste 617, NY, NY 10003.Purpose: Any Lawful Purpose.

15.5 Partners LLC. Arts. of Org. filedwith Secy. of State of NY (SSNY) on06/26/14. Off. loc.: NY Co. SSNY des.as agent of LLC upon whom processmay be served. SSNY shall mailprocess to 810 7th Ave., 18th Fl., NewYork, NY 10019. Purpose: General.

Notice of Formation of Selby Lake TooLLC. Arts. of Org. filed with NY Dept.of State on 7/21/14. Office location:NY County. Sec. of State designatedagent of LLC upon whom processagainst it may be served and shallmail process to: Max R. Shulman,610 West End Ave., NY, NY 10024,principal business address. Purpose:all lawful purposes.

NOTICE OF FORMATION OF RedRoom Hospitality LLC. Arts of Orgfiled with Secy of State of NY (SSNY)on 08/11/14. Office location: NYCounty. SSNY designated as agentupon whom process may be servedand shall mail copy of process againstLLC to: 95 Delancey Street, NewYork, NY 10002. Principal businessaddress: 95 Delancey Street, NY, NY10019. Purpose: any lawful act.

Notice of Qualification of LEE EQUITYSTRATEGIC PARTNERS FUNDINTERLUXE AIV, L.P. Authority filedwith Secy. of State of NY (SSNY) on09/04/14. Office location: NY County.LP formed in Delaware (DE) on08/27/14. Princ. office of LP: 650Madison Ave., NY, NY 10022. SSNYdesignated as agent of LP upon whomprocess against it may be served. SSNYshall mail process to the Partnershipat the princ. office of the LP. Nameand addr. of each general partner areavailable from SSNY. DE addr. of LP:Corporation Service Co., 2711Centerville Rd., Ste. 400, Wilmington,DE 19808. Arts. of Org. filed with DESecy. of State, State of DE, Div. ofCorps., 401 Federal St., Dover, DE19901. Purpose: Any lawful activity.

Notice of Formation of SNB NYCConsulting LLC. Arts. of Org. filedwith NY Dept. of State on 8/8/14.Office location: NY County. Sec. ofState designated agent of LLC uponwhom process against it may beserved and shall mail process to: c/oCT Corporation System, 111 8thAve., NY, NY 10011, regd. agentupon whom process may be served.Purpose: all lawful purposes.

Notice of Formation of SUPERIEURCONSULTING, LLC. Arts. of Org. filedwith Secy. of State of NY (SSNY) on09/18/14. Office location: NY County.SSNY designated as agent of LLCupon whom process against it may beserved. SSNY shall mail process toCorporation Service Co., 80 State St.,Albany, NY 12207, regd. agent uponwhom and at which process may beserved. Purpose: Any lawful activity.

Name of LLC: Summers BK LLC. Arts.of Org. filed with NY Dept. of State:5/16/13. Office loc.: NY Co. Sec. ofState designated agent of LLC uponwhom process against it may beserved and shall mail process to: c/oBusiness Filings Inc., 187 Wolf Rd.,Ste. 101, Albany, NY 12205, regd. agt.upon whom process may be served.Purpose: any lawful act.

3Square Project Management LLC.Arts. of Org. filed with Secy. of Stateof NY (SSNY) on 08/27/14. Off. loc: NYCounty. SSNY des. as agent of LLCupon whom process may be served.SSNY shall mail process to c/oRobinson Brog, et al., Attn: Neil S.Goldstein, 875 Third Ave., 9th Fl., NewYork, NY 10022. Purpose: General.

AZIMUTH MORNINGSIDE LLC, adomestic LLC, filed with the SSNYon 6/20/14. Office location: New YorkCounty. SSNY is designated as agentupon whom process against the LLCmay be served. SSNY shall mailprocess to Azimuth DevelopmentGroup LLC, 40 Fulton St., 12th Fl.,NY, NY 10038. General Purposes.

Noble Sensors, LLC. Arts. of Org.filed with Secy. of State of NY (SSNY)on 08/27/14. Off. loc.: NY Co. SSNYdes. as agent of LLC upon whomprocess may be served. SSNY shallmail process to c/o Robinson Brog, etal., Attn: Marshall J. Gluck, 875 3rdAve., 9th Fl., New York, NY 10022.Purpose: General.

Notice of Qualification of PRIMEMACAYA CAPITAL MANAGEMENTLP. Authority filed with Secy. of Stateof NY (SSNY) on 09/17/14. Officelocation: NY County. LP formed inDelaware (DE) on 09/10/14. Princ.office of LP: 200 E. 72nd St., PHK,NY, NY 10021. SSNY designated asagent of LP upon whom processagainst it may be served. SSNY shallmail process to the Partnership atthe princ. office of the LP. Name andaddr. of each general partner areavailable from SSNY. DE addr. of LP:c/o Corporation Service Co., 2711Centerville Rd., Ste. 400, Wilmington,DE 19808. Arts. of Org. filed with DESecy. of State, Div. of Corps., JohnG. Townsend Bldg., 401 Federal St. -Ste. 4, Dover, DE 19901. Purpose:Any lawful activity.

Notice of Formation of PJ 207 LLC.Arts. of Org. filed with Secy. of State ofNY (SSNY) on 09/15/14. Office loca-tion: NY County. SSNY designatedas agent of LLC upon whom processagainst it may be served. SSNY shallmail process to c/o Rosenberg &Estis, P.C., Attn: Michael E. LefkowitzEsq., 733 Third Ave., NY, NY 10017.Purpose: Any lawful activity.

Notice of Qualification of WindFinancial Information LLC. Authorityfiled with NY Dept. of State on9/24/14. Office location: NY County.Princ. bus. addr.: 54 W. 40th St., NY,NY 10018. LLC formed in DE on8/6/14. NY Sec. of State designatedagent of LLC upon whom processagainst it may be served and shallmail process to: c/o CT CorporationSystem, 111 8th Ave., NY, NY 10011,regd. agent upon whom process maybe served. DE addr. of LLC: 1209Orange St., Wilmington, DE 19801.Cert. of Form. filed with DE Sec. ofState, 401 Federal St., Dover, DE19901. Purpose: all lawful purposes.

Notice of Formation of PCDC HealthOpportunities Fund XI LLC. Arts. ofOrg. filed with NY Dept. of State on6/13/14. Office location: NY County.Sec. of State designated agent of LLCupon whom process against it maybe served and shall mail process to:Primary Care Development Corp., 45Broadway, Ste. 530, NY, NY 10006,principal business address. Purpose:any lawful activity.

NOTICE OF FORMATION OF ZJKVentures LLC. Arts of Org filed withSecy of State of NY (SSNY) 3/28/14.Office location: NEW YORK County.SSNY designated agent upon whomprocess may be served and shallmail copy of process against LLC toprincipal business address: 205Third Ave 2N, NY NY 10003.Purpose: any lawful act.

PUBLIC & LEGAL NOTICES

Notice of Qualification of OwnDevelopment Company, LLC.Authority filed with Secy. of State of NY(SSNY) on 09/17/14. Office location:NY County. LLC formed in Delaware(DE) on 09/09/14. SSNY designatedas agent of LLC upon whom processagainst it may be served. SSNYshall mail process to: 45 Main St.,Ste. 536, Brooklyn, NY 11201.Address to be maintained in DE: c/oIncorporating Services, Ltd., 3500 S.Dupont Hwy, Dover, DE 19901. Artsof Org. filed with the DE Secy. ofState, John G. Townsend Bldg., 401Federal St., Ste. 4, Dover, DE 19901.Purpose: any lawful activities.

NOTICE OF QUALIFICATION ofPLASTIC SURGERY CENTER OFFAIRFIELD, LLC. Authority filed withSecy. of State of NY (SSNY) on6/13/14. Office location: NY County.LLC formed in CT on 12/6/2013. NYSfictitious name: PLASTIC SURGERYOF FAIRFIELD. SSNY designatedas agent of LLC upon whom processagainst it may be served. SSNYshall mail process to the LLC at addr.of its princ. office: 33 Miller Street,Fairfield, CT 06824. Arts. of Org. filedwith CT Secy. of State, 30 TrinityStreet, Hartford, CT 06106. Purpose:Medicine. The LLC is to be managedby one or more managers.

Notice of Qualification of NorthwoodSecurities LLC. Authority filed withNY Dept. of State on 8/6/14. Officelocation: NY County. Princ. bus.addr.: 575 5th Ave., 23rd Fl., NY, NY10017. LLC formed in DE on 5/30/14.NY Sec. of State designated agent ofLLC upon whom process against itmay be served and shall mail processto: c/o CT Corporation System, 1118th Ave., NY, NY 10011, regd. agentupon whom process may be served.DE addr. of LLC: The CorporationTrust Co., 1209 Orange St.,Wilmington, DE 19801. Cert. of Form.filed with DE Sec. of State, 401Federal St., Dover, DE 19901.Purpose: all lawful purposes.

NOTICE OF QUALIFICATION ofMEDLEY OPPORTUNITY FUND IIILP. Authority filed with Secy of Stateof NY (SSNY) 8/11/14. Office location:NY County. LP formed in DE on3/27/14. SSNY designated agent uponwhom process may be served andshall mail copy of process against LPto: CORP SERVICE COMPANY, 80STATE ST, ALBANY, NY 12207.Principal business address: 375 PARKAVE, 33RD FLR, NY NY 10152. DEaddress of LP: 2711 CENTERVILLERD, STE 400, WILMINGTON, DE19808. Certificate of LP filed withSecy of State of DE located at:Division of Corp John G. TownsendBldg,401 Federal St,Ste 4,Dover,DE19901. Purpose: any lawful act.

Notice of Qualification of ARCHospitality Portfolio I HIL TRS, LLC.Authority filed with Secy. of State of NY(SSNY) on 09/25/14. Office location:NY County. LLC formed in Delaware(DE) on 09/11/14. Princ. office ofLLC: 106 York Rd., Jenkintown, PA19046. SSNY designated as agent ofLLC upon whom process against it maybe served. SSNY shall mail processto c/o CSC, 80 State St., Albany, NY12207. DE addr. of LLC: 2711Centerville Rd., Ste. 400, Wilmington,DE 19808. Arts. of Org. filed with DESecy. of State, Div. of Corps., 401Federal St., Ste. 4, Dover, DE 19901.Purpose: Any lawful activity.

NOTICE OF FORMATION OF SJMusovic Management LLC. Articles ofOrganization filed with the Secretaryof State of NY (SSNY) on May 12, 2014.Office location: NEW YORK. SSNYhas been designated as agent uponwhom process against it may beserved. The Post Office address towhich the SSNY shall mail a copy ofany process against the LLC servedupon him/her is: 244 East 79 Street,New York, NY 10021 The principalbusiness address of the LLC is: 244East 79 Street, New York, NY 10021.Dissolution Date: (If Applicable).Purpose: any lawful act or activity.

Qualification of Blackstone PropertyPartners L.P. Authority filed with theSect of State of NY (SSNY) on 9/5/14.Office Loc: NY County. LP formed inDE on 6/30/14. SSNY has beendesignated as agent of LP upon whomprocess against it may be served andshall mail process to: 200 BellevuePkwy, Ste 210, Wilmington, 19809. DEaddress of LP: 200 Bellevue Pkwy, Ste210, Wilmington, 19809. Name/addrof genl ptr avail from SSNY. Cert ofLP filed with DE Sect of State, 401Federal St, Ste 4, Dover, DE 19901.Purpose: any lawful activity.

Notice of Formation of ORIENTISGROUP HOLDINGS, LLC. Arts. ofOrg. filed with Secy. of State of NY(SSNY) on 08/15/14. Office location: NYCounty. SSNY designated as agentof LLC upon whom process againstit may be served. SSNY shall mailprocess to Ballon Stoll Bader &Nadler, 729 7th Ave., 17th Fl., NY, NY10019. Purpose: Any lawful activity.

NOTICE OF FORMATION OF 66PEARL STREET HOLDING LLC. Artsof Org filed with Secy of State of NY(SSNY) on 9/9/14. Office location: NYCounty. SSNY designated agent uponwhom process may be served andshall mail copy of process againstLLC to principal business address:260 Madison AV, Ste 204, NY NY10016. Purpose: any lawful act.

Notice of Qual. of NREM 80 MaidenManager LLC, Auth. filed Sec'y ofState (SSNY) 7/17/14. Office loc.: NYCounty. LLC org. in DE 7/15/14.SSNY desig. as agent of LLC uponwhom process against it may beserved. SSNY shall mail copy ofproc. to NRAI, 111 Eighth Ave., NY,NY 10011, the Reg. Agt. upon whomproc. may be served. DE off. addr.:160 Greentree Dr., Ste. 101, Dover,DE 19904. Cert. of Form. on file:SSDE, Townsend Bldg., Dover, DE19901. Purp.: any lawful activities.

Notice of Qual. of North 6th MezzFunding LLC, Auth. filed Sec'y ofState (SSNY) 7/30/14. Office loc.: NYCounty. LLC org. in DE 7/29/14.SSNY desig. as agent of LLC uponwhom process against it may beserved. SSNY shall mail copy ofproc. to NRAI, 111 Eighth Ave., NY,NY 10011, the Reg. Agt. upon whomproc. may be served. DE off. addr.:160 Greentree Dr., Ste. 101, Dover,DE 19904. Cert. of Form. on file:SSDE, Townsend Bldg., Dover, DE19901. Purp.: any lawful activities.

Notice of Qual. of HighBrook IncomeProperty Fund II GP, LLC, Auth. filedSec'y of State (SSNY) 2/26/14. Officeloc.: NY County. LLC org. in DE1/8/14. SSNY desig. as agent of LLCupon whom process against it maybe served. SSNY shall mail copy ofproc. to 680 Fifth Ave., 19th Fl., NY,NY 10019. DE off. addr.: CSC, 2711Centerville Rd., Wilmington, DE19808. Cert. of Form. on file: SSDE,Townsend Bldg., Dover, DE 19901.Purp.: any lawful activities.

NOTICE OF FORMATION OF LIMITEDLIABILITY COMPANY. NAME:PRESTIGE IRON WORKS, LLC.Articles of Organization were filed withthe Secretary of State of New York(SSNY) on 01/17/14. Office location:New York County. SSNY has beendesignated as agent of the LLC uponwhom process against it may beserved. SSNY shall mail a copy ofprocess to the LLC, 18-21 126thStreet, College Point, New York 11356.Purpose: For any lawful purpose.

Notice of Formation of CSA RealtyAssociates, LLC. Arts. of Org. filedwith Secy. of State of NY (SSNY) on9/18/14. Office location: NY County.SSNY designated as agent of LLCupon whom process against it may beserved. SSNY shall mail process to:The LLC, 119 Fifth Ave., Ste. 701, NY,NY 10003. Purpose: any lawful activity.

Notice of Formation of DR. KATHYDOOLEY, CHIROPRACTOR, PLLC.Arts. of Org. filed with SSNY on 8/5/14.Office location: New York County.SSNY designated as agent of LLCwhom process against may be served.SSNY shall mail process to: C/O THEPLLC, 1410 Broadway, Concourse Lvl,NY, NY 10018. Purpose: to engagein the practice of Chiropractic.

RIDGEFIELD FAMILY PARTNERS LLC,Arts. of Org. filed with the SSNY on07/14/2014. Office loc: NY County.SSNY has been designated as agentupon whom process against the LLCmay be served. SSNY shall mailprocess to: Reed Werbitt, 540Madison Ave 18A, NY, NY 10022.Purpose: Any Lawful Purpose.

Notice of formation of Kavita Sharma,MD, PLLC. Arts. of Org. filed withSec’y of State of NY (SSNY) on8/4/14. Office location: NY County.SSNY designated as agent of PLLCupon whom process against it may beserved. SSNY shall mail process to385 South End Ave, Apt 3D, NY, NY10280. Purpose: practice professionof medicine.

MADE INNEW YORK

ÕÕÕÕ

-REGISTER todaycrainsnewyork.com/MINY

DATE:THURSDAY, OCTOBER 23, 2014LOCATION:Fashion Institute of Technology227 W 27th St | NYC

and cocktail reception.You must be pre-registered to attend. No refunds permitted.

For event information: 212-210-0739 | [email protected] event sponsorship information: Joanna Harp | 212-210-0278

[email protected]

speakers*:Melissa Autilio Fleischut, President and CEO

New York State Restaurant AssociationDara Furlow, Founder, With Love, From BrooklynMichael Gitter, Partner, First Press Public RelationsAmanda Hesser, CEO and Co-Founder, Food52Paul Leone, Executive Director, NYS Brewers AssociationMarc Murphy, Chef + Owner, Benchmarc Restaurants

(Landmarc + Ditch Plains)

Andrew Rigie, Executive Director, NYC Hospitality AllianceLiz Neumark, CEO, Great Performances

Benzi Ronen, Founder and CEO, Farmigo

exhibitors:Anarchy in a Jar | Beecher’s Cheese | Blue Hill YogurtBobby Sue’s Nuts | Brad’s Organics | Dutch’s SpiritsPort Morris Distillery | Prohibition Distillery . . . AND MORE

TRADE SHOW sessions & seminars NETWORKING

co-host

SUPpORTING PARTNERUnderwriting PARTNERs Contributing Sponsors Association Partners

Ó

General Admission: $75.

SM

The office market in lower Manhattan is tightening, and tenantsare taking notice. The Shanghai-based Bank of Communica-tions has renewed its lease for the penthouse at 55 Broadway, fouryears before its hold on the two-level space was set to expire.Thedeal will extend the bank’s stay in the 22,000-square-foot office

for a decade beyond the expiration of its current lease, according to real estate database CoStar.

The bank’s willingness to renew so far in advance suggests the extent towhich it sees both rents and occupancy levels continuing to rise in the neigh-borhood as more tenants flock there.The asking rates for the space were in themid-$50s per square foot, already substantially higher than a year ago.Vacan-cy rates, meanwhile, continue to drop, leaving tenants with fewer options.

The Bank of Communications only had to look downstairs at the 32-sto-ry tower to see how space is filling up.A company called CFX Inc.has strucka deal to take 5,600 square feet on about half of the building’s 26th floor forseven years. CFX will move from Spring Street in SoHo.

“You’re definitely seeing companies like CFX continue to move to low-er Manhattan from midtown south,” said Brad Gerla, a broker at CBREwho along with colleague Zach Freeman represents 55 Broadway’s landlord,Harbor Group. “But on top of that, tenants increasingly want to be down-

REAL ESTATE

Downtown tenant locks in rents

town because of all the great thingsthat are happening there, from theincreased retail to the billions of dol-lars that have been spent on transitinfrastructure, to the community ofcreative tenants that are basingthemselves in the neighborhood.”

Another outfit, Highland Capi-tal Group, is moving to the buildingfrom just up the street at 140 Broad-way. It’s taking 6,500 square feet onthe 21st floor for 10 years.

Mr. Gerla said that he is also inthe final stages of a lease to fill thebuilding’s 23rd floor, a roughly10,000-square-foot space. He saidhe couldn’t yet disclose that tenant’sidentity because the deal was not yetdone.

The asking rents for those spaceswere also in the mid-$50s per squarefoot.

Chris Whitman,a broker at Lin-coln Properties, represented CFXInc. in its deal. CommunicationsBank did its renewal directly withMr. Gerla and his colleagues.

—daniel geiger

Starlab to land in garment centerStarwood Hotels & Resorts is bet-ting big on the garment center.Nextmonth,the hospitality company willopen a 46,000-square-foot officeand innovation center, called Star-lab, at 417 Fifth Ave., between East37th and East 38th streets. Star-wood will relocate its current,8,900-square-foot design center onVarick Street to the new office.

The new facility will house about200 staffers from downtown, from

other temporary offices around thecity and from the company’s corpo-rate headquarters in Stamford,Conn.

“From a practical perspective, thislocation in the garment district isequidistant from Penn Station andGrand Central and is easily accessi-ble to our corporate office,” said PhilMcAveety, executive vice presidentand chief brand officer at Starwood.“From an environmental perspective,the garment district is becoming ahub for creative and technologycompanies—just being in a creativehot spot delivers on that as well.”

Starlab will occupy the building’sninth and 10th floors, where inno-vative new technologies, including akeyless hotel guest-room entry viamobile phone app, will be furtherdeveloped. Mr. McAveety said thecompany will move people into thenew space in November.

Starwood is one of a host of cre-ative office and retail tenants land-ing in the garment district. Thereare about 10 hotels in the pipeline inaddition to the recently openedArcher, a 180-room facility with arestaurant from David Burke; HyattHerald Square; and the year-oldRefinery. The newcomers includethe Dream Hotel, according to Bar-bara Blair Randall, president of theGarment District Alliance, former-ly known as the Fashion Center.

New retail tenants such as themassive, 57,000-square-foot UrbanOutfitters on Broadway and an ex-pected Shake Shack have helpedadd to the neighborhood’s transfor-mation.

“For so many years, [develop-ment] was stagnant,” said Ms. Ran-dall. “Now it’s snowballing.”

But such change can be costly fortenants. The garment center, once abargain compared with its midtowncompetitors, is seeing rents take off.In recent years, rents had been asmuch as $40 or $50 a square foot onthe avenues and half that on the sidestreets, but even on the side streets,prices have now increased to morethan $40 a square foot.

—adrianne pasquarelli

Macaron maker bows in BrooklynA popular purveyor of French cook-ies is opening its first stand-aloneshop in the base of 1 Brooklyn BridgePark, becoming the latest firm totransition from the food bazaars ofBrooklyn to a brick-and-mortarsetup.

Vendôme Macaron recently inkeda 10-year lease for 900 square feet onthe ground floor of the building alsoknown as 360 Furman St., at the foot

of Brooklyn Heights—in a luxurycondo conversion developed by RALCos.—where the asking rent was $50per square foot.The firm has made asplash with its multicolored, egg-white-based confections, and hasbeen a fixture at Smorgasburg, theyear-round weekend food market inBrooklyn.

“Smorgasburg has been a greatlaunching pad,” said Taryn Garcia,one of the company’s three owners.

With its first stand-alone shop,Vendôme joins the likes of Asia Dogand Butter & Scotch, which havealso grown from weekend marketslike Smorgasburg and BrooklynFlea to their own stores. Ryan Con-dren of CPEX Real Estate and col-league George Danut representedthe landlord, RAL Cos.

The owners of Vendôme, whowere represented by CPEX’s Kristi-na Triglia, hope to open early nextyear and expand their offerings.

—joe anuta

STATEMENT OF OWNERSHIP,MANAGEMENT AND CIRCULATION

(Required by 39 U.S.C. 3685)1. Publication Title: Crain’s New York Business2. Publication No.: 000-2093. Filing Date: 9-30-144. Issue Frequency: Weekly except double issues the

weeks of June 23, July 7, July 21, Aug 4, Aug 18and Dec 22

5. No. of Issues Published Annually: 466. Annual Subscription Price: $99.957. Complete Mailing Address of Known Office of

Publication: Crain Communications, Inc. 685 ThirdAvenue, New York, New York County, NY 10017

8. Complete Mailing Address of Headquarters orGeneral Business Office of Publisher: 685 Third Avenue,New York, NY 10017

9. Full Names and Complete Mailing Addresses ofPublisher, Editor, and Managing Editor: Publisher, JillKaplan, Crain Communications, Inc. 685 ThirdAvenue, New York, NY 10017; Editor, Glenn Coleman,Crain Communications, Inc. 685 Third Avenue, NewYork, NY 10017; Managing Editor, Jeremy Smerd,Crain Communications Inc. 685 Third Avenue, NewYork, NY 10017;

10. Owner (if owned by a corporation, its name andaddress must be stated and also immediately thereafterthe names and addresses of stockholders owning orholding 1 percent or more of total amount of stock. Ifnot owned by a corporation, the names and addressesof the individual owners must be given. If owned by apartnership or other unincorporated firm, its nameand address, as well as that of each individual must begiven. If the publication is published by a nonprofitorganization, its name and address must be stated.)(Item must be completed.): Crain Communications Inc.1155 Gratiot Avenue, Detroit, MI 48207-2997; K. E.Crain, 1155 Gratiot Avenue, Detroit, MI 48207-2997.R. E. Crain, 685 Third Avenue, New York, NY 10017;

11. Known bondholders, mortgagees and othersecurity holders owning or holding 1 percent or moreof total amount of bonds, mortgages or other securi-ties: None.

12. For completion by nonprofit organizationsauthorized to mail at special rates. The purpose, func-tion, and nonprofit status of this organization and theexempt status for Federal income tax purposes (Checkone).❏ Has Not Changed During Preceding 12

months❏ Has Changed During Preceding 12 months.

(If changed, publisher must submit explanation ofchange with this statement)

13. Publication Name: Crain’s New York Business14. Issue Date for Circulation Data Below:

September 30, 201315. No.

Copies ofAverage No. Single

Copies IssueEach Issue Published

Extent and During Nearest toNature of Preceding FilingCirculation 12 Months DateA. Total No. Copies

(Net Press Run) 45,080 42,522B. (1) Paid/

RequestedOutside-CountyMail SubscriptionsStated on Form 3541.(Include advertisersproof and

exchange copies 10,422 9,636(2) Paid In-CountySubscriptions

(Include advertiser’sproof and exchange copies) 12,210 11,736(3) Sales Through Dealers and Carriers, Street Vendors, CounterSales, and Other

Non-USPS Paid Distribution 345 299(4) Other Classes Mailed Through the USPS 0 0

C. Total Paid and/orRequestedCirculation[Sum of 15b. (1),(2), (3), and (4)] 22,976 21,671

D. Free or Nominal Rate Distribution:(by mail and outside mail)(1) Free or Nominal Rate Outside-County Copies included on PS Form 3541 19,497 19,304(2) Free or Nominal Rate In-County Copies included on PS Form 3541 1,025 0(3) Free or Nominal Rate Copies Mailed at Other Classes Through the USPS (e.g. First-Class Mail) 0 0(4) Free or Nominal Rate Distribution Outside the Mail (Carriers or OtherMeans) 143 333

E. Total FreeDistribution(Sum of 15d (1),(2),(3),& (4)) 20,665 19,637

F. Total Distribution(Sum of 15c and15e) 43,642 41,308

G. Copies notdistributed 1,438 1,214

H. Total (Sum of15f, and g 45,080 42,522

I. Percent Paid and/or Requested Circulation (15c / 15f x 100) 52.65% 52.46%

16. This Statement of Ownership will be printed inthe 10-13-14 issue of this publication.

17. I certify that the statements made by me aboveare correct and complete.Jill KaplanPublisher

436 W. 18TH ST.ASKING RENT; TERM: $90 per squarefoot; 10 years

SQUARE FEET: 3,500

TENANT; REP: Prince Lumber; JustinDiMare of Newmark Grubb KnightFrank

LANDLORD; REP: Dugout Doug-Two;Alexander Hill of Eastern Consolidated

BACK STORY: The hardware store,which has called Manhattan homesince 1923, will open in its newlocation early next year.

BARE BONES

GALE FORCELATE LAST MONTH, workers began pouringthe foundation of a 13-unit residentialcondominium at 21 W. 20th St. It’s amodest project for a developer currentlybuilding a nearly 100 million-square-foot,$35 billion mini-city outside Seoul, SouthKorea. But the Chelsea property ranksas an important one for Manhattan-based Gale International and its youngmarketing director, Stanley Gale Jr.(pictured). It marks a homecoming to theNew York market after a long absence.

Work on the project comes eight yearsafter his father sold his namesakedevelopment company—which at its peak had 7 million square feet ofproperty in New Jersey alone—to Mack-Cali for nearly $545 million, and at thesame time inked a five-year noncompete agreement. With that self-imposedban over, the firm began shopping around for opportunities in its old stompinggrounds.

“Our roots are here, and there was a desire to come home and dosome things,” said the younger Mr. Gale. “That’s when we decided to put theold band back together.”

Work on the Chelsea condo is expected to be completed in June of nextyear. Already, eight of the nine, two-bedroom floor-through units are incontract. Meanwhile, the four penthouse units, the largest of which is nearly5,000 square feet, are expected to hit the market in February at prices of upto $4,000 per square foot.

True, that sales effort pales in comparison with that of Korea, where thecompany not long ago sold all 2,400 of its residential condos on their first dayon the market. But after all those years away from New York, as theyounger Mr. Gale explains, “we just wanted to get our feet wet again.”Having now done that, he said, the company is looking around for otheropportunities in the area.

PERSON OF INTEREST

—ERIK IPSEN


NOTHINGBUTNET WORTH

86% Management

$433,250 Average Household Income

$2.1 million Average Net Worth

$617,000 Annual Corporate Buying Power

(If only our sports teams had such great stats.)

Contact Joanna Harp at [email protected] or 212-210-0278

NEW! Advertise in all 4


NEW IN TOWN

Companies that would like to have detailsof openings published should submitdescriptions following this format toJKramer @crainsnewyork.com, with “Newin Town” in the subject line.

● Band of Outsiders70 Wooster St., ManhattanThe clothing store opened in SoHo. Itfeatures men’s and women’s basics as wellas footwear. A unique feature for theshop is its in-store cookie window,serving treats from Momofuku Milk Bar.

● Concrete + Water485 Driggs Ave., Brooklyn The lifestyle shop opened in Williams-burg. It offers menswear, womenswearand home goods, and has a backyard fortrunk shows, concerts and dance parties.

● Freida Rothman248 Mott St., ManhattanThe jewelry store opened in Nolita. Theshop, named for a Brooklyn-basedjeweler, offers medieval-influencednecklaces, earrings and cuffs.

● Woolrich John Rich & Bros.125 Wooster St., ManhattanThe outdoor-clothing store opened inSoHo. The store, the 184-year-oldWoolrich’s first in the U.S., offers men’sand women’s parkas, sportswearaccessories and shoes.

COMPANY MOVES

Companies that would like to have detailsof recent moves published should submitdescriptions following this format [email protected], with“Company Moves” in the subject line.

● Blink Fitness78-14 Roosevelt Ave., QueensThe low-cost gym chain opened inJackson Heights. The discount arm ofEquinox offers memberships starting at$15 a month.

● Brooklyn Strength195 Pacific St., BrooklynThe Brooklyn Heights gym opened asecond location, in Cobble Hill. Thegym offers personal training, Thai yogaand springboard Pilates.

● Park Avenue Autumn360 Park Ave. South, ManhattanThe seasonal-themed restaurantreopened in its former space in theFlatiron district. It offers a farm-to-tableAmerican menu with such items asHudson Valley duck, halibut with blacktruffles, and broccoli and Cheetos.

BANKRUPTCIES

The following listings are selected from themost recent available filings by companiesseeking bankruptcy protection in theSouthern and Eastern Districts of NewYork. Information was obtained from U.S.Bankruptcy Court records available onPublic Access to Court Electronic Records.Listings are in alphabetical order.

● Dawn Inc. d/b/a Café Mozart308 Mamaroneck Ave., Mamaroneck,N.Y.

Filed for Chapter 11 bankruptcyprotection on Sept. 22. The filing citesestimated assets of $0 to $50,000 andestimated liabilities of $100,001 to$500,000. The creditors with the largestunsecured claims are 3-D Associates,owed $15,513; Citibank NA, owed$12,000; and Colucci Associates, owed$3,500.

● One Sunrise Fashion Inc.1718 Weirfield St., QueensFiled for Chapter 7 bankruptcy on Sept.28. The filing cites estimated assets of $0to $50,000 and estimated liabilities of$100,001 to $500,000. The creditorswith the largest unsecured claims are theNew York State Department of Labor,owed $61,178.12; Elena Delcia Minea,owed $24,000; and Libia Maria Amaro,owed $16,380.

● Otizito75-52 113th St., QueensFiled for Chapter 7 bankruptcy on Sept.23. The filing cites estimated assets of $0to $50,000 and estimated liabilities of$100,001 to $500,000. The creditor withthe largest unsecured claim is AmsterRothstein & Ebenst, owed $78,184.90.

● Rini NY Corp.87-03 Northern Blvd., QueensFiled for Chapter 7 bankruptcy on Sept.23. The filing cites estimated assets of $0to $50,000 and estimated liabilities of $0to $50,000. The creditors with thelargest unsecured claims are WesternUnion, owed $20,000; New York StateTaxation and Finance, owed $7,257.15;and HSBC, owed $5,000.

GOVERNMENT CONTRACTOPPORTUNITIES

Following are selected contractopportunities recently announced by NewYork City agencies. To learn how to sellgoods and services to city government, visitwww.nyc.gov/selltonyc. For a searchabledatabase of current procurement notices,visit www.nyc.gov/cityrecord. Listings are alphabetical by category anddepartment.

CONSTRUCTION SERVICES● Department of Parks and RecreationSeeks competitive sealed bids by 10:30a.m. on Oct. 20 for the restoration offreshwater wetlands and related siteworkat Cedar Grove Beach, Staten Island.Bid documents are available at theBlueprint Room, Room 64, OlmstedCenter, Flushing Meadows CoronaPark, Queens, for a $25 fee, payable bycompany check or money order to Cityof New York, Parks and Recreation. Tomake inquiries, contact MichaelShipman at (718) 760-6705 [email protected].

● Department of Parks and RecreationSeeks competitive sealed bids by 10:30a.m. on Oct. 21 for the reconstruction ofthe towers and bridge at the bath house inCrotona Park, Bronx. Bid documents areavailable at the Blueprint Room, Room64, Olmsted Center, Flushing MeadowsCorona Park, Queens, for a $25 fee,payable by company check or moneyorder to City of New York, Parks andRecreation.To make inquiries, contactMichael Shipman at (718) 760-6705 [email protected].

● Department of TransportationSeeks competitive sealed bids by 11 a.m.on Oct. 21 for supply, installation andscarification of thermoplastic pedestriancrosswalk markings on city streets in thefive boroughs. Bid documents areavailable for a deposit of $50, payable bycertified check or money order to NewYork City Department of Transportation.To make inquiries, contact Larisa Ter-Akopova at (212) 839-4595.

GOODS AND SERVICES● Department of EducationSeeks competitive sealed bids by 4 p.m.on Oct. 27 for repair, replacement andinstallation of locks and door hardware.To receive bid documents, send an emailto [email protected] with“B2548040: Requirements contract forrepair, replacement and installation oflocks and door hardware” in the subjectline. To make inquiries, send an email [email protected] or call theVendor Hotline at (718) 935-2300.

● Department of EducationSeeks competitive sealed bids by 4 p.m.on Oct. 28 for installation of dooralarms. To receive bid documents, sendan email to [email protected] with “B2549040:Requirements contract for installation of door alarms” in the subject line. Tomake inquiries, send an email [email protected] or call theVendor Hotline at (718) 935-2300.

REAL ESTATE DEALS

Companies that would like to have details oftheir recent transactions appear in theselistings should email descriptions followingthis format to [email protected],with “Real estate transaction” in the subjectline, or enter them online at crainsnewyork.com/submitadeal. Deals are listed in order ofsquare footage.

COMMERCIAL● Math for America signed an 11-yearlease for 21,500 square feet at 915Broadway in the Flatiron district.Thescience and mathematics educationnonprofit will relocate from 160 FifthAve. to a space on the 16th and 17thfloors of the 20-story building.Thetenant was represented by Tracy Johnsonand Peter Hennessey of Cassidy Turley.The landlord, ABS Partners Real Estate,was represented in-house by JamesCaseley, Alex Kaskel and Carol Sacks.The asking rent was $80 per square foot.

● IFM Investors signed a 16-year leasefor 18,300 square feet at 114 W. 47th St.The global fund manager will relocatefrom 99 Park Ave. to the top floor of the26-story building. The tenant wasrepresented by Christopher Foerch andJeffrey Peck of Savills Studley. Thelandlord, the Durst Organization, wasrepresented in-house by Karen Kuznickand Rocco Romeo. The asking rent was$75 per square foot.

● CityMD signed a lease for 4,600square feet at 2025 Broadway on theUpper West Side.The urgent-care andwalk-in medical services provider willopen its 12th Manhattan location andthird on the Upper West Side in its moveto the 30-story, 215,000-square-footNevada Towers residential co-op.Thetenant was represented by BenjaminBirnbaum of Newmark Grubb KnightFrank Retail.The landlord, NevadaTowers, was represented by BrandonBerger and Ariel Schuster of RKF.Thelength of the lease and the asking rentwere not disclosed.

RETAIL● Hudson’s Bay Co. signed anapproximately 20-year lease for 85,000square feet at Brookfield Place at 225

Liberty St. in lower Manhattan for a SaksFifth Avenue store. It will be the secondlocation for the department store, whichhas a midtown flagship. The new store isexpected to take up four floors. Thetenant was represented by CBRE’sLaura Crowley-Corrinet, MichaelGeoghegan and Stephen Siegel, andLaura Pomerantz Real Estate’s LauraPomerantz. The landlord, BrookfieldProperty Partners, was represented in-house by David Cheikin, EdwardHogan, Jeremiah Larkin and AlexanderLiscio. The length of the lease and theasking rent were not disclosed.

STOCK TRANSACTIONS

Following are recent insider transactions atNew York’s largest publicly held companiesfiled with the Securities and ExchangeCommission by executives and majorshareholders. Listings are in order oftransaction value. The information wasobtained from Thomson Reuters.

● SL Green Realty Corp. (SLG)Stephen L. Green, founder andchairman, sold 95,439 shares ofcommon stock at $109.13 per share onSept. 3, in a transaction worth$10,414,781. He now directly holds820,954 shares.

● CBS Corp. (CBS)Sumner M. Redstone, executivechairman, exercised options on 95,600shares of common stock at $30.21 pershare between Aug. 27 and Sept. 3, in atransaction worth $2,888,076.

● Celgene Corp. (CELG)Gilla Kaplan, director, sold 30,000shares of common stock at $93.73 per

share on Sept. 8, in a transaction worth$2,811,900. She now directly holds125,044 shares.

● Cambrex Corp. (CBM)Steven Mark Klosk, president, chiefexecutive and director, sold 126,257shares of common stock at pricesranging from $22.01 to $22.02 per sharebetween Sept. 2 and Sept. 3, in atransaction worth $2,779,438. He nowdirectly holds 145,870 shares.

● Time Warner Cable (TWC)Robert D. Marcus, chief executive,exercised options on 16,270 shares ofcommon stock on Sept. 22 at pricesranging from $72.05 to $77.04 pershare, in a transaction worth $1,244,748.In the same period, he sold 16,270shares of common stock at pricesranging from $151.83 to $152.37 pershare, in a transaction worth $2,471,510.He now directly holds 61,281 shares.

Marc J. Lawrence-Apfelbaum, executivevice president, general counsel andsecretary, sold 8,000 shares of commonstock at $152.36 per share on Sept. 22,in a transaction worth $1,218,880. Henow directly holds 5,830 shares.

● WebMD Health Corp. (WBMD)Kevin M. Cameron, director, exercisedoptions on 85,000 shares of commonstock at $26.69 per share on Sept. 9, in atransaction worth $2,268,650.

● Foot Locker (FL)Giovanna Cipriano, senior vicepresident and chief accounting officer,sold 35,000 shares of common stock at$56.99 per share on Sept. 5, in atransaction worth $1,994,640. She nowdirectly holds 45,023 shares. �

ABOUT THIS SECTIONFOR THE RECORD is a weekly listing of information from the public recordthat can help businesspeople in the New York area find opportunities,potential new clients and updates on competitors.

To ask questions or get more information on this section, contactCrain’s research department at [email protected].

DEALS ROUNDUPTRANSACTION SIZE

TARGET/SELLERS (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE

FOR THE RECORD

Civitas Therapeutics Inc./ $608.4 Acorda Therapeutics Inc. SB M&ABay City Capital, Canaan Partners,OrbiMed Advisors (Manhattan), Sofinnova Ventures Inc., Wellington Management Co., Adage Capital Management, Fountain Healthcare Partners, RA Capital Management, Partner Fund Management, Longitude Capital Management Co. Alkermes Inc., Rock Springs Capital

McGraw-Hill Construction $320.0 Symphony Technology Group FB M&AInformation Group (Manhattan)/McGraw-Hill Financial Inc. (Manhattan)

Parago Inc./TH Lee Putnam $291.1 Blackhawk Network Holdings Inc. SB M&AVentures (Manhattan)THLee.Putnam Parallel Ventures, THLi Co. Investment Partners (Manhattan)/

CapQuest Group Ltd./ $258.3 Arrow Global Network Holdings Ltd. SB M&ATowerbrook Capital Partners (Manhattan)

Tacheles Building $191.0 Perella Weinberg Partners investment FB M&Ain Berlin’s Mitte arm (Manhattan)district/Jagdfeld Gruppe

Qualtrics Inc./ $150.0 Accel Partners, Insight Venture Partners GCInot disclosed (Manhattan), Sequoia Capital

Statoil Oslo office $106.5 Madison International Realty (Manhattan) SB M&Acomplex located in Norway/Koksa Eiendom AS

Adaptimune Ltd./ $104.0 New Enterprise Associates, OrbiMed GCInot disclosed Advisors (Manhattan), Wellington

Management Co., Novo A/S, BeaconBioventures, QVT Financial (Manhattan)Ridgeback Capital Management(Manhattan), Merlin Nexus (Manhattan)University of Oxford endowment arm,Rock Springs Capital, venBio SelectAdvisor, Foresight Capital Management

Selected deals announced for the week ended Sept. 25 involving companies in metro New York.FB M&A: Financial buyer M&A represents a minority or majority acquisition of existingshares of a company with the participation of a financial buyer. GCI: Growth capital investmentrepresents new money invested in a company for a minority stake. SB M&A: Strategic buyerM&A represents a minority or majority acquisition of existing shares of a company without theparticipation of a financial buyer. source: capitaliq

al court against Mr. Lipton’s lawfirm, Wachtell Lipton Rosen &Katz, and two of its partners. Mr.Lipton hasn’t been charged.

CVR hired Wachtell Lipton in2012 for advice on how to handleMr.Icahn’s hostile takeover bid.Thecompany contends the firm’s poorcounsel caused it to overpay its in-vestment bankers at GoldmanSachs and Deutsche Bank by $20million. The company wants to re-cover the $6 million fee it paidWachtell Lipton.

Old enemiesThe law firm shot back with a

suit of its own in New York statecourt seeking unspecified damages.“The Icahn-sponsored CVR litiga-tion amounts to a scare tactic to in-timidate those lawyers willing andable to help clients faced withIcahn’s opportunistic attacks,”lawyers for the firm wrote.

It could be tough for Mr. Icahnto win his malpractice case. In orderto prevail, he must show not onlythat Wachtell Lipton gave advicethat no reasonable lawyer wouldprovide, but also that CVR was di-

rectly hurt by the bad advice.“It’s a very steep climb,” said

Ellen Yaroshefsky, aprofessor at theCardozo Schoolof Law.

But winningthe case may notbe all that im-portant to Mr.Icahn, who did-n’t return a callseeking comment.Subjecting lawyers atthe firm that containshis enemy’s last name to depositionsor making them sit through lengthycourt hearings might be satisfactionenough.

Messrs. Icahn and Lipton havebeen duking it out for at least 30years. Back in 1985, for instance,Mr. Icahn’s $8 billion hostiletakeover of Phillips Petroleum wasfoiled thanks to a defense designedby Mr. Lipton. Phillips reacted toMr. Icahn’s raid by buying backstock, selling shares to employees,shedding assets and taking on moredebt so that the company became anundesirable target.Such poison pillshave become part of the defense ar-

senal at many leading corporations,and Mr. Icahn never hesitates tocriticize them as workingagainst the interests of

shareholders.More recent skir-

mishes include the2012 fight for DellComputer, whichwas represented byWachtell, when Mr.Icahn tried to breakup that company’s pro-

posed leveraged buyout.The law firm also worked

with Clorox that year to defeat Mr.Icahn’s hostile takeover bid.

The two, however, can put aside

their differences if it means both canmake money. For instance, Mr.Icahn started howling at Motorolain 2007 to do something about itsstock price, and the company brokeitself up three years later. In 2011,

the company’s cellphoneunit, which was repre-sented by WachtellLipton, agreed to be ac-quired by Google for$12.5 billion. Mr. Ic-ahn declared, “Mo-torola is activism at its

best.”

Hostile takeoverMr. Icahn brought his

brand of activism to CVR in2012 when he made a hostile

takeover bid of $30 a share for the oilprocessor. CVR responded by hir-ing Wachtell Lipton, Goldman andDeutsche Bank for advice. CVR al-leges that Wachtell lawyers failed toaccurately advise board membersthat the company would owe Gold-man and Deutsche Bank $18 mil-lion each in fees if a deal got done,even if the bankers couldn’t per-suade Mr. Icahn to raise his bid.

Ultimately, Mr. Icahn acquiredCVR for $30 a share, but then thecompany refused to pay Goldmanand Deutsche Bank their fees. Thebanks sued, and a New York state

judge last month agreed they wereowed $18 million each.

While CVR appeals,Mr. Icahn’sstrategy appears to be to punishWachtell Lipton by tying the firmin as many legal knots as he can.CVR initially filed its lawsuitagainst the firm 12 months ago in aKansas federal court, choosing thevenue because its general counsellives in Kansas City, even thoughthe company is based in Texas.Thatlocation was “maximally inconven-ient” for Wachtell, a lawyer for thefirm told U.S. District JudgeRichard Sullivan at last week’s hear-ing. The case was transferred toNew York in August.

Wachtell escalated the fight lastDecember when it sued CVR andMr. Icahn in New York state court,charging them with breach of con-tract and abuse of process. Mr.Icahn’s attorney, Herbert Beigel,argued at last week’s hearing that hisclient’s war with Wachtell shouldplay out in federal court. Wachtellargued it makes no sense for the caseto proceed in two separate court-houses located across the street fromone another.

“We’re not surprised we’re here;we’re not unhappy to be here,” saidWachtell’s lawyer, Paul Schectman.

Judge Sullivan didn’t quite buythat. “A little unhappy?” he asked. �

Icahn squares off against LiptonContinued from Page 3

batteries of handheld devices thansatellite communications, and oper-ates like digital sonar between a bea-con and a smartphone.

Representatives from the storesusing beacons did not respond to re-quests for comment.

Shoppers who visit the Applestore in Grand Central Terminal,for example, can receive a welcomemessage on their phone, along witha list of available Genius Bar ap-pointments. But to get the mes-sages, they first have to downloadthe Apple Store app, enable Blue-tooth and—as an extra precaution,in the Apple store at least—log onto the store’s Wi-Fi.

Once that happens, the beaconsact like a salesperson who already

knows your previous Apple purchas-es: As you move to the accessories, amessage appears offering details onheadphones,cases and speakers withrecommended and possible upgradeadvice. Consumers who also use thecompany’s mobile-payment app,Apple Pay, could be sold an item andleave the store without having toever interact with a human.

A role to playEven with all those options

turned on, it is not the beacon send-ing messages to a specific device,butthe application itself. For instance,someone with a Starbucks app pass-ing by a location with a beaconmight get a message on his or herphone that the wait time for a ventilatte is only four minutes .That mes-

sage is created and sent by Star-bucks, and the beacon merely con-veys that the user is nearby.

Whether beacons become ubiq-uitous will depend on whether theyare set up in public spaces ratherthan on the premises of retailersalone. That’s where outdoor adver-tising company Titan ran into push-back with the beacons it had in-stalled. Still, the company believesthe technology has a role to play incities.

“We don’t know if and when[New York City] will begin to uti-lize beacon technology,” said Titan’schief strategy officer, Dave Ether-ington. “That will be up to the city.However, Titan believes that thereare many beneficial safety, commu-nication and way-finding use cases

for municipalities using beacons.”Titan installed the beacons as

part of a franchise agreement withthe city to turn pay phones into Wi-Fi hot spots.The city will get 50% ofthe estimated $200 million in adver-tising revenue the agreement willgenerate. It’s unclear whether thebeacons would have been a source ofcash for the city.

Sharing dataThere’s also the sense that City

Hall’s order to remove the beaconscould be a momentary bow to pub-lic pressure. “The de Blasio admin-istration has made it clear in wordand deed that they’re going to moveto embrace this technology,” Mr.O’Donnell said.

The low-cost, low-energy de-vices could make it easier to collectand share data publicly and private-ly. A public beacon network could,for instance, help the Metropolitan

Transportation Authority and oth-er city planners track the flow ofcommuters through the system atrush hour.A network could also givebusinesses access to new marketingtools while creating opportunitiesfor innovators to offer features thattake advantage of the technology.

“[Beacons are] beneficial to citi-zens, commercial interests and thecity as a whole,”Mr.O’Donnell said.“It’s going to happen.”

But the public must be educated,he said, including small businesses.Justin Philips, owner of Beer Table,a craft-beer kiosk directly under theApple Store in Grand Central, saidhe’s more concerned with engagingwith his customers, human to hu-man. If beacons could bring morecustomers into his store, so muchthe better.

“It does sound cool, though,” hesaid. “I just don’t know that muchabout it.” �

Beacons already in use by storesContinued from Page 3


A strategymeant to punisha firm by tying itin legal knots

such disclosure was not necessary be-cause the IRS restricts what apoliti-cal nonprofits can spend on lobbying.

The IRS, however, has a far nar-rower definition of what constituteslobbying than New York does, saidMr. Grandeau. Even though Fami-lies for Excellent Schools has re-ported $6 million in lobbying ex-penses this year through August tothe state’s lobbying oversightagency, the number reported on thegroup’s federal tax return will bevastly lower. A spokesman for thegroup said urging Mr. de Blasio notto roll back charter-school co-locations is considered lobbying bythe state but not by the IRS.

Mr. Grandeau, who formerly di-rected the Temporary Commission

on Lobbying, which was shut downwhen the 2011 law created the JointCommission on Public Ethics tooversee lobbying in New York,is wellequipped to navigate clients throughthe complexities of compliance.

Somewhat amorphous rulesIn tax filings, Families for Excel-

lent Schools opted to subject its lob-bying spending to what’s known asthe “substantial part test”—a some-what amorphous set of IRS regula-tions determining whether lobbyingmakes up a major part of an entity’sactivities. In past cases, the IRS hasconsidered such factors as what per-centage of an organization’s spend-ing is meant to influence legislation.A group that devotes too much of itsannual budget to lobbying can lose

its tax-exempt status.It’s not clear what Families for

Excellent Schools, a major ally ofcharter-school leader Eva Moskowitz,will spend this year. Its 2012 tax re-turn shows that its 501(c)(3) spent$1.3 million—and not a penny onlobbying.The $6 million in lobbyingreported this year to the state was thefirst time the group registered suchactivity in New York. It continues tohold large rallies and recently openeda Boston office.

Jeffrey Tenenbaum, an expert onnonprofit lobbying regulations atWashington, D.C., law firm Ven-able, agreed with Mr. Grandeau thatstate laws define lobbying muchmore expansively than the IRS does.States can cast a wide net to captureattempts to influence government,

he explained, while the IRS is taskedwith ensuring that tax exemptionsare being used appropriately.

Most of Families for ExcellentSchools’ spending went to televisionadvertising. In one commercialshowing a huge Albany rally organ-ized by the nonprofit, the narratorstates, “Now we need the Assemblyto act. Hear our voices.” Other ads

posted on the nonprofit’s YouTubepage, however, have nothing to dowith legislation.

“Sometimes organizations havevery sophisticated nonprofit lawyerswho are able to guide them throughthis,” said Mr. Tenenbaum. “Othertimes, organizations are well inten-tioned, but just ill informed. Theseare very complicated rules.” �

Group is visible, but not donorsContinued from Page 7

CLARIFICATION AND CORRECTIONS

Mayor Bill de Blasio did not say his executive order hiking the hourly rate to $13.13 under the city’sliving-wage law would lift the wages of 18,000 workers during the next five years, only that the rulewould cover those workers. That distinction was unclear in the Oct. 6 “Living-wage hike offers limitedpayoff, big risks.”

Benefits consulting firm Mercer had 20,285 firmwide professionals as of Dec. 31, 2013, and 20,256as of Dec. 31, 2012 (910 and 928 in the New York area, respectively). These facts were misstated inthe Oct. 6 list of the New York area’s largest benefits consulting firms.

The biggest city-based operator of code schools claims a job-placement rate of more than 90%. Thisinformation was misstated in the Oct. 6 “Code red hot. So, too, code schools.”

Joanna Cannon, Pencil’s new chief operating officer, is 36. Her age was misstated in the Oct. 6Executive Moves.

American Express Chairman and CEO Kenneth Chenault serves on the advisory board at Harvard Corp.The organization’s name was misstated in the Sept. 15 Crain’s Hall of Fame.

INSIDESource Lunch Takinghis gubernatorial shotPAGE 42Out and AboutCider Week comes to the Big Apple PAGE 43

BY LISA FICKENSCHER

Glenn Tilbrook knew what his audience of some 300 baby boomers wantedas he scanned the candlelit room at City Winery. ¶ When the formerfrontman for the late, great U.K. pop band Squeeze finally delivered hishits “Pulling Mussels (From the Shell)” and “Tempted” at the end of his90-minute set, the crowd erupted.This is what they came to hear on aSeptember evening while they sipped expensive wine and swayed in theirseats—though Mr.Tilbrook hoped they would also groove to songs fromhis new solo release, Happy Ending, which he is promoting now. ¶ The

confluence of new and nostalgic, pricey yet casual, is the gold mine that six-year-old CityWinery has tapped into in Hudson Square. Now City Winery is becoming an internationalbrand, like many of the musical acts it books on a nightly basis. It is on track to double itsrevenue next year, to $50 million, according to its founder and CEO, Michael Dorf. It expandedto Chicago in 2012, and opened clubs in Napa, Calif., and Nashville,Tenn., this year. Mr. Dorfwants to build an empire of 30 venues in the U.S. and abroad

Meat e-marketThe city’s wholesale butchers stillwear blood-stained white coatsand work in big industrialwarehouses, but lately they aregoing retail like never before,launching slick e-commercewebsites that offer to ship juicystrip steaks, filets mignons andprime burgers directly toconsumers’ homes nationwide.

“The demand for quality beefhas risen across the country withthe burger craze and the explosionof new steakhouses,” said MarkSolazs, vice president and co-owner of Master Purveyors, thelatest entrant. Others includeMosner Family Brands, DeBraggaand Spitler and Pat LaFrieda MeatPurveyors.

The 57-year-old MasterPurveyors, based in the city’s meatmarket at Hunts Point, sells its cutsto Peter Luger Steak House,Wolfgang’s Steakhouse, ‘21’ Cluband other top chop houses. It justlaunched a consumer websiteselling, for example, four 8-ouncefilets mignons for $125 and sixdry-aged prime burgers for $46.

Mr. Solazs’ biggest concernabout the new venture is customerservice. “When you are goingfrom wholesale to retail, you needto have better etiquette,” he said.“We don’t want to be too rough.”

—lisa fickenscher

Bank’s eco-artNew York City is getting a littlegreener. This month, TD Banklaunched its Art for Treescampaign, featuring the work of10 artists. The effort was inspiredby MillionTreesNYC, a public-private initiative to plant 1 milliontrees throughout New York City’sfive boroughs by 2015.

The environment-themed artwas on display in Grand CentralTerminal last week and will beshown in a pop-up gallery spaceon the High Line on Oct. 24. TDBank, a MillionTreesNYC leadsponsor, has also covered 110 of itsstorefront windows with largephotographs of the works, whichwill be auctioned online frommid-October through the end ofthe month. All proceeds will go tothe New York Restoration Project,Brooklyn Botanic Garden, TreesNYand Friends of the High Line.

Bridgette Mayer, aPhiladelphia-based gallery ownerand curator of the exhibit, pickedartists who could benefit from theexposure instead of famousnames. “We wanted to showemerging artists coming up intothe art scene in New York,” shesaid. Included are PhilippaLawrence, whose Bound features

an ancientdead treewrapped inbandages ofcloth, andIvanStojakovic, anative ofSerbia whocreated

Super Storm Barrier (pictured), awall installation with living plants.

—jessica kramer See VINTAGE on Page 42

HELLUVA TOWN


Vintage venueBaby boomers, quality spirits and performances by veteran

musicians provide winning formula for City Winery

SWILL SWELL

70%PORTION OF THE WINESOLD at City Wineryvenues that is made onpremises

80%CUT OF CITY WINERYTICKET SALES that goesto the performing artists

GRAPE EXPECTATIONS:City Winery CEO MichaelDorf hopes to expand hismusic-and-Malbecsconcept to 30 outlets inthe U.S. and abroad.

buck

enn

is

Republican Rob Astori-no hopes he can ac-complish statewidewhat he did in West-chester County: be-

come the top elected official despitea heavily Democratic electorate.ButMr. Astorino, who has beenWestchester county executive since2009, has an uphill battle in thegubernatorial race. He trails Gov.Andrew Cuomo by about 20 pointsin the polls and has only $1.27 mil-lion against the incumbent’s re-maining war chest of $23.7 million.

What concerns do you hear from small-businesses owners in New York City?The thing they complain aboutmost is getting nickeled-and-dimed by the state—the excessiveregulations and penalties and finesfrom the Labor Department andHealth Department—and con-stant harassment. That’s notunique to New York City, by theway. That’s all around the state.

Has the business climate worsenedunder Mayor Bill de Blasio?It’s just swinging the pendulum sofar over that businesses will find itvery difficult to expand or evenkeep pace. You’re talking about aminimum wage of $15? The gover-nor’s on record that he would sup-port that. He owes the WorkingFamilies Party and he owes Bill deBlasio, so whatever agenda theywant, he’s going to give them.

As a Republican, how would you dealwith a Democratic state Legislature?If the Legislature, led by ShellySilver, wants to get anything done,he’s going to have to meet some ofmy priorities. And you know what?The less government in New York,the better. What is it, Texas, theLegislature meets once every twoyears for 90 days? It’s the No. 1 state

economy in the U.S., because theLegislature’s not passing crazy lawsto placate everybody.

How would you pass your agenda?The governor has an awful lot ofpower through the budget process,especially, if he chooses to use it.And the baselinebudget of the gover-nor is in many wayswhat stands.

Though you’ve said youwon’t curtail access toabortion, Democrats sayyour anti-abortion viewis extreme.Democrats have triedthat three straightcampaigns against mein pretty liberal,Democratic West-chester. They’ve triedthat bogeyman, and itdoesn’t work. Whatpeople are concernedabout are jobs, theeconomy, taxes.

What would be your toppriorities as governor?The biggest statementwe make is with ourfirst budget and put-ting our fiscal house in order. Who’sbuying that everything is fine?Outside Manhattan, this state isstruggling mightily. Upstate is in arecession. The Bronx has 13%unemployment.

What else?Getting us to be a more business-friendly state.The governor can do alot through the executive branch,through the administrative code,theagencies. You can take a tack of strict enforcement or a balancedapproach. We’re going after a bal-anced approach. This is a strict-

enforcement administration, andthat’s what’s killing businesses.

What about fracking?It’s insane that we’re the only state inAmerica not taking advantage whentwo-thirds of our state has naturalgas underneath [the ground]. It’s

supported by PresidentBarack Obama—who advo-cates for natural gas—the[Environmental ProtectionAgency],the Interior and En-ergy departments. You have30 states, including manywith Democratic governors,doing it. You know what theeffective minimum wage is inNorth Dakota? Between $15and $20. Because the unem-ployment rate’s about 2%.

Would you target public employ-ee unions as Wisconsin Gov.Scott Walker has?Wisconsin had a RepublicanSenate and Assembly. Wedon’t have that, nor would Iadvocate that. My relation-ship with labor is a good one.We’ve accomplished a lot [inWestchester].Through nego-tiations we got groundbreak-ing contracts.

Would you be less labor-friendly thanMr. Cuomo?Not less labor-friendly, moretaxpayer-friendly. Things can getout of whack real fast when youstart cutting deals with every unionjust to survive [politically].

What’s your view of the legalization ofLas Vegas-style casinos here?We’re 20 years too late to the casi-no business in New York.This can-not be the economic recovery forthe state.They may help certain ar-eas, but they’re also going to bringproblems to certain areas.�


GOP gubernatorial nomineeputs spotlight on business

Vintage venuethat his wealthy backers liken to theHard Rock Café and House ofBlues—both of which are savvy mar-keters of merchandise as well.

“The stars have come togethervery nicely for us,” Mr. Dorf said.“We have gotten the big names thatused to fill concert halls and an audi-ence that is looking for culture and asophisticated environment.”

It is also the only winery-cum-concert venue in the city, and Mr.Dorf wants to grow fast before anycompetitors “wake up” and copy hisbusiness model.

City Winery launched in 2008 asthe economy crumbled. Mr. Dorfmanaged not only to survive,but alsoto create a new concept around wine-making in New York.

“Michael was almost a one-manshow,but he has built an organizationof people underneath him, and wehave just taken in some new investorsto grow this thing,”said Ilan Kaufthal,one of City Winery’s original in-vestors and a former vice chairman ofinvestment banking at Bear Stearns &Co. Mr. Kaufthal is currently chair-man of East Wind, a boutique invest-ment bank.

Mr. Dorf, 51, ishardly a novice clubowner. In 1986, hefounded the origi-nal Knitting Facto-ry, a club on EastHouston Street,featuring jazz andexperimental musicthat has sincemoved to Williams-burg, Brooklyn, andopened in severalother cities. He’s no longer affiliatedwith the venue, but it gave him theexperience he needed.

At City Winery, he is targetingolder and wealthier customers.

“They still like to go to a concertlike they used to, but they want tohave civilized conversation, anddon’t want to get completely wastedand get home at 3 a.m.,” said Stevenvan der Zwan, a real estate develop-er who owns residential properties aswell as Williamsburg Cinemas, andwho was an early investor in CityWinery. “These fans still have to getup in the morning and go to work.”

Service standardsProviding a high level of service is

crucial, Mr. Dorf said. As customersarrive for either drinks and dinner orjust the music portion of the evening,they are greeted by a delegation ofhosts and servers who keep close tabson their needs.

A huge fan of restaurateur DannyMeyer, Mr. Dorf requires his staff toread Mr. Meyer’s landmark bookabout the art of hospitality in busi-ness, Setting the Table. He also takeshis 70-person management teamevery year to a resort in the Caribbeanor elsewhere to develop the corporateculture and share ideas.

“I hate the phrase ‘corporate re-treat,’ ” he said. “I call it ‘base camp,’because when you are mountain-climbing, you create a base camp,where you survey the area you want

to climb and conquer.”One of the summits he’s focused

on is the goal of opening up to 20City Winery outposts in the U.S.within the next five years.

Not just another barHis move to Napa in April was a

key component to the growth. Be-cause 70% of the wine sold at CityWinery venues is made on the prem-ises, it needs huge volumes of grapesand a good relationship with thevineyards that supply it. It has 36contracts with vineyards—25 inNapa and Sonoma, Calif.—thatprocess more than 100 tons of grapesfor City Winery.

“We felt it was a strategic move tohave a location in the heart of winecountry so we could further our rela-tionships there and get new ones,”Mr. Dorf said.

Without the music, however, CityWinery would be just another bar.Ac-cess to such performers as Mr.Tilbrook and Steve Forbert,who playsthere on Nov.2, is made easier in largepart to the declining fortunes of manymusicians who are not making asmuch income from royalties on their

past hits becausemost consumers arenot buying CDs.

Concerts areseen as a steadysource of revenuefor musicians. Be-cause the vast ma-jority of City Win-ery’s revenue isderived from sellingdrinks and food,artists keep about80% of the money

from ticket sales, Mr. Dorf said.“Our focus is on the culinary side,

so we are happy to let the artist fill upthe room and make the money,” headded.

For Marc Cohn, who is bestknown for his Grammy-winningballad, “Walking in Memphis,” per-forming at City Winery throughoutthe year is a no-brainer, as he lives inManhattan and would rather beclose to home with his two childrenthan being on the road.

Still, he concedes that perform-ing live is much more important toan artist than ever before.

“It was hard to sustain a career inthe past if you couldn’t deliver live,but that is magnified 100-fold todaybecause no one is really selling anyrecords,”he said,adding,“I’ve playedmore shows in the last five years thanin all of the past 15.”

City Winery represents a newchapter in the music scene as land-mark clubs, like the Bottom Line,which attracted such legends as EricClapton, Linda Ronstadt and thePolice, shutter.

“When the Bottom Line closed,it was a great loss,” Mr. Cohn said.Still, he pointed out,“City Winery isthe only venue in the city where Idon’t want to go home after soundcheck or performing because I wantto stay and eat.”�


SOURCELUNCH:Interview by Chris Bragg

RELEVANT READ:David and Goliath, byMalcolm Gladwell

BAD SPORT: Herecently caught heatfrom allies of Mr.

Cuomo forbeing aMiamiDolphinsfan.“Since Iwas 5, I’vealwaysrooted forthem,” hesays, addingthat he likes theGiants, too.

FAMILY MAN: He hasthree children, inkindergarten, and

fourth and sixthgrades. His

wife is aspecial-

educationteacher. “We

try to vacationnow in a kid-friendlyplace where there’s awater park or anamusement park.”

RADIO STAR: Most of his career hasbeen in sportsbroadcasting. “I

started my own cableshow when I was 15,which was cutting-edge at the time.” Hehas also hosted aradio show withCardinal EdwardEgan, the former

archbishop of theArchdiocese of NewYork.

SI SE PUEDE: Mr.Astorino oncestudied in Spain andis fluent in Spanish.

PLAY/LIST People, places and things that make Rob Astorino tick

ROB ASTORINO

WHERETHEYDINEDSYLVIA’S328 Malcolm XBlvd.(212) 996-0660 sylviasrestaurant.comAMBIENCE:Iconic Harlemsoul food with lotsof touristsWHAT THEY ATE:� Iced tea� Water� Two orders offried chicken� Mac andcheese� Candied yams� Cornbread� Collard greens

PRICE: $53.60,including tip

‘We are happyto let the artistfill the roomand make the money’

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LISTEN to a discussion at CrainsNewYork.com/podcasts


OPENING FALL 2014 · CHEF CHARLIE PALMER’S PREMIER PRIVATE EVENTS SPACE OVERLOOKING MANHATTAND&D BUILDING · 979 THIRD AVENUE · 14TH FLOOR · NEW YORK, NY · 212.644.9394 · UPPERSTORYNY.COM

@UPPERSTORYNY

SNAPS Artists raise $5 million for Carnegie HallOUT ANDABOUT

FRIDAY, OCTOBER 24, THROUGH SUNDAY, NOVEMBER 2For 10 days, CIDER WEEK NYC poursinto more than 200 bars, restaurantsand markets throughout Manhattan,Brooklyn and Queens hosting eventscelebrating the festive fall beverage.Highlights include the Union SquareCider Week Night Market, CiderfeastSeaport at the Fulton Street Marketsand Applepalooza 2014 at the AstorCenter, 399 Lafayette St. For details on the various venues, dates, start times andprices, visit ciderweeknyc.com.

CULTURE FIXTUESDAY, OCTOBER 21, THROUGH SATURDAY,OCTOBER 25New York’s biggest indiemusic festival returns forits 34th year. CMJ 2014MUSIC MARATHON’s five days offestivities include more than 1,000artists performing in more than 80venues throughout Manhattan andBrooklyn, as well as a conferencecomponent consisting of hundreds ofpanels, seminars and special events.Times and venues vary. Badges are$549; a show pass is $140. For moreinformation and to purchase tickets,visit cmj.com/marathon.

SUNDAY, OCTOBER 26The largest free cycling event in NewYork state celebrates its 20th year. Inthe TOUR DE BRONX, bicyclists choose a25- or 40-mile route through theborough’s 61 neighborhoods,culminating in a music festival at theNew York Botanical Garden. Check-intime is 9 a.m. at Bronx CountyCourthouse, 851 Grand Concourse.For more information, visittourdebronx.org.

CAREER BUILDERWEDNESDAY, OCTOBER 22Personal-finance platform LearnVesthosts its third annual LEARNVEST LIVENew York event. The session—whichfeatures workshops, dinner anddrinks—aims to help make financialplanning accessible and affordable.Speakers include LearnVest founderand CEO Alexa von Tobel andSoulCycle senior master instructorStacey Griffith. The evening expotakes place from 6 p.m. to 9:30 p.m. atthe Metropolitan Pavilion, 125 W.18th St. Tickets are $20 and can bepurchased at learnvest.com.

THURSDAY, OCTOBER 23Crain’s and Taste NY present theinaugural MADE IN NEW YORK TRADESHOW, connecting the small-businessfood-and-beverage community ofNew York with retailers and buyers. Itincludes a trade show, educationalseminars, networking and a cocktailreception. The event takes place from8 a.m. to 5 p.m. at the FashionInstitute of Technology, 227 W. 27thSt. Tickets are $75 and can bepurchased at crainsnewyork.com/events-calendar.

DON’T MISS CIDER HOUSE RULES

MARK YOUR CALENDAR… SATURDAY, NOVEMBER 15, THROUGH MONDAY, JANUARY 19WALK IN A WINTER WONDERLAND at the New York Botanical Garden’s HOLIDAYTRAIN SHOW. More than a dozen large-scale model trains cover a quarter-mile oftrack around mini-versions of more than 150 New York landmarks made withorganic materials. There are also 250 acres of winter landscapes to exploreamid the NYBG’s 50 gardens and plant collections. The garden is open Tuesdaythrough Sunday from 10 a.m. to 6 p.m. and is located at 2900 Southern Blvd. inthe Bronx. Train-show tickets start at $20 for adults and $10 for kids 2 to 12. Formore information, visit nybg.org.

FUNDRAISERS TUESDAY, OCTOBER 21Actor Taye Diggs plays emcee at the SKINCANCER FOUNDATION GALA. The eveningfeatures a cocktail reception, dinner, anawards ceremony and music by acclaimedclassical violinist Joshua Bell. The partystarts at 6:30 p.m. at the MandarinOriental New York, 80 Columbus Circle.Tickets are $500 to $1,750 and can bepurchased at skincancer.org/events/gala.

THURSDAY, OCTOBER 23The American Folk Art Museumpresents its FALL BENEFIT GALA featuringcocktails, dinner, awards and dancing.The fete provides funding for theinstitution and its educational programs,which serve more than 8,000 New YorkCity schoolchildren annually. It takesplace at 6:30 p.m. at the Pierre hotel, 2 E.61st St. Tickets start at $1,000 and can bepurchased atfolkartmuseum.org/fallbenefit.

OPENINGMONDAY, OCTOBER 20,THROUGH MONDAY, FEBRUARY 16 A collection of more than 80 paintings,collages, drawings and sculpture by fourleading cubists—Georges Braque, JuanGris, Fernand Léger and PabloPicasso—will be shown to the public

for the first timein theMetropolitanMuseum of Art’sCUBISM: THELEONARD A.LAUDERCOLLECTION. TheMet, located at1000 Fifth Ave.,is open from 10a.m. to 5:30 p.m.Sunday through

Thurs-day, and 10 a.m. to 9 p.m. Fridayand Saturday. Suggested admission foradults is $25. Visit metmuseum.org.

by Jessica Kramer

See more of this week’s Snaps online at CrainsNewYork.com/galleries.

CHARLES J. HAMILTON JR., NICOLE ARI PARKER,YVETTE L. CAMPBELL and BORIS KODJOE at theHarlem School of the Arts’ 2014 Fall Benefit. The Oct. 6event raised $1 million.

ANNE-SOPHIE MUTTER, JESSYE NORMAN, RICHARD WUNDERLICH and DEBORAHVOIGT at Carnegie Hall’s Opening Night Gala. The Oct. 1 fete took in more than $5million.

JEFFREY LEVINE and HARRY BRAUNSTEIN at theJewish National Fund’s Real Estate Tree of Life AwardDinner. The Sept. 30 benefit raised more than $1 million.

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LARRY KING, CARLOS SLIM and HARVEY KEITEL at the Friars Club’s Annual Gala. TheOct. 7 party honored actor Robert De Niro and Mr. Slim, the Mexican billionaire.

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