Crain's New York Business

ASKED & ANSWERED: Building trades head on what the city needs most

CHASING GIANTS: Startup has a cool new take on the window AC PAGE 3

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JULY 11, 2022

RESIDENTIAL REAL ESTATE

THE NEW ECONOMICS OF RENTING How New Yorkers are navigating broker fees, bidding wars and skyrocketing apartment rents

BY EDDIE SMALL

R

enting a New York City apartment has always been a difficult and demoralizing experience, defined mainly by lowering your expectations until nothing seems weird about referring to closets and windows as luxury amenities.

Lately, however, that New York rite of passage is looking even more like an obstacle course. Manhattan rents are hitting record highs, and the number of available apartments THE SHARE OF is plunging month after month. Broker fees, no-fee apartments which used to be fairly easy to avoid, are makadvertised on ing a comeback. After years of artificially high StreetEasy so far advertised rents that dropped quickly once the this year, down landlord threw in “free rent” for a few months, from 75% last year bidding wars are forcing tenants to pay above the asking rent to get an apartment.

Factors ranging from high mortgage rates to remote work are contributing to the crunch, and renters should not expect much relief until THE MEDIAN fall at the earliest, multiple housing experts say.

RENT for a “Coming out of Covid, if you were a renter, Manhattan you had more leverage than ever,” said Keyan apartment in May Sanai, a Douglas Elliman agent. “You now have less leverage than you’ve had in a very long time because there are 10 people standing behind you.”

So if the summer of 2020 was defined by plummeting rents while people wondered if the city would still exist by fall, and if the summer of 2021 was defined by sharp increases that ultimately just represented a return to the city’s pre-Covid apartment prices, this summer is being defined by proof that, despite consistent Covid

55%

SHYAM PATEL is one of many New Yorkers searching for an apartment during one of the toughest markets for renters in recent memory.

See RENT on page 26

BUCK ENNIS

$4K

TRANSPORTATION

Audit reveals a steep taxpayer cost for NYC Ferry subsidies

BY CAROLINE SPIVACK

T

he Economic Development Corporation’s lax oversight and financial management of the NYC Ferry system has cost city taxpayers nearly a quarter of a billion dollars in underreported costs, according to a scathing 50-page audit of the service

by Comptroller Brad Lander.

The EDC reported spending $534 million

NEWSPAPER

VOL. 38, NO. 26

on ferry operations from July 1, 2015 through Dec. 31, 2021. But the audit released last week found that EDC officials actually spent $758 million in ferry-related expenses—a whopping $224 million difference.

The spending gap comes from multiple financial decisions the audit questions, including acquiring new vessels, terminating a contract of a former ferry operator early and changing agreement terms. The city’s under-

© 2022 CRAIN COMMUNICATIONS INC.

is an important and appropriate policy debate on how much subsidy should be spent on various forms of public transit. But it is essential that the policy conversation be based on accurate reporting.”

The EDC pushed back on parts of the audit, arguing that the report lacked context and misrepresented some facts.

See AUDIT on page 26

SMALLBIZ SPOTLIGHT

A MUSICAL MATCHMAKER SETS UP SHOP

BY CARNEGIE PAGE 27

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estimation of the public subsidy required for the $2.75 fare also factored into the costs, leading EDC to far exceed the $6.60 figure it had projected to spend per rider. In Fiscal Year 2021 taxpayers paid a $12.88 per rider subsidy, according to the audit—50% higher than the $8.59 EDC reported for that year.

“EDC failed to provide the transparent, accurate oversight and financial management that is required of them,” Lander said. “There

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HEALTH CARE

Ahead of mental-health hotline launch, advocates set sights on what happens after a call comes in

BY JAMES O’DONNELL

O

n July 16, New Yorkers requiring help for substance use, suicide prevention or their mental health will have a new phone number to call and text. But as that day approaches, mental health advocates have their sights set on what’s happening on the other end of the phone call.

A federal law enacted in 2020 to replace the 10-digit National Suicide Prevention Lifeline with 988 meant to provide faster and more appropriate support for those going through mental health crises. As the city works toward that transition, opinions differ on whether appropriate funding, public awareness and coordination with other programs are in place to make it a success, partially because the shift

is more ambitious than just changing digits.

The 988 launch is also meant to change who people think to call and who responds for mental health emergencies. In addition, it sought to create a system that relies less heavily on police.

“Ideally, the goal is to remove people who are experiencing these things from having to utilize 911,” said Matt Kudish, executive director of the National Alliance on Mental Illness of New York City.

New Yorkers made 142,827 calls to the national hotline in 2020, an increase of 13% from the year prior, according to a report from the state Office of Mental Health. Vibrant Emotional Health, the operator of the lifeline, expects that volume to increase to 442,000 contacts in the first year of the 988 launch.

The state’s 2022-23 budget re-

flects that projected growth. It includes $35 million to expand call center capacity throughout the state and hire an undisclosed number of call center workers. That will rise to $60 million on an annual basis. The Office of Mental Health also allocated a one-time funding of $10 million to support the launch.

In a statement, the city Department of Health and Mental Hygiene said the office “has been expanding NYC Well’s capacity to respond to current demand for the crisis counseling, peer support, information and referral services that they provide.”

Fewer police When people call or text 988, what they receive depends on the specifics of their situation. They may receive short-term crisis counseling or referral to other services,

such as substance use programs.

For calls with more severe risks that may have previously involved police or emergency department use, counselors may dispatch the Mobile Crisis Unit. But some social workers and mental health professionals have pushed back against the idea of being sent alongside police officers to emergencies, questioning the policy’s safety and effectiveness.

In response to the safety critique, Kudish pointed to the Crisis Assistance Helping Out on the Streets program in Eugene, Oregon, as a national model for how, in crises, to replace police with mental health professionals. While the program does dispatch police if it’s determined they will be a better fit for a crisis call, that only happens in 3% to 8% of calls, according to the program’s website.

“I’m not naive; Eugene, Oregon, is not New York City,” Kudish said.

“But people living with mental illness are far more likely to be victims of violence than perpetrators.”

Spreading the word The ultimate impact of 988 will depend on advocates’ ability to spread the word. To do so, the Substance Abuse and Mental Health Services Administration is offering a suite of radio public service announcements and other materials for a national campaign.

Evidence shows that efforts like that are important. A 2021 study found that when rapper Logic named a song after the lifeline’s current 10-digit number, it led to a 26% increase in calls. The police found evidence that the publicity might have prevented as many as 245 deaths. ■

STATS AND THE CITY

Time: 9 to 11 a.m.

Address: 450 E. 29th St. Tickets: CrainsNewYork.com/crypto

WE’LL BE BACK! Crain’s New York Business publishes a print edition every other week during July and August. Our next issue will be July 25. In the meantime, you can keep up with our coverage every day by visiting our website, CrainsNewYork.com.

24%

OF THE TOP 50 OFFICES are located on Sixth Avenue

BUCK ENNIS

$70M

$40M $30M $20M $10M 0

Paramount Plaza $43,934,175

$50M

One Vanderbilt Avenue $43,985,700

$60M

1290 Avenue of the Americas $46,264,574

OF BUILDINGS of the top 100 most-taxed office buildings in the country are located in Manhattan.

Amount of property tax paid in 2021

$80M

111 Eighth Avenue $48,702,307

82%

THE TOP TEN HIGHEST PAYING OFFICE BUILDINGS GENERATED MORE THAN $528M IN PROPERTY TAX REVENUE FOR THE CITY LAST YEAR

1345 Avenue of the Americas $49,187,993

DETAILS

That own most of the highest-taxed buildings include Vornado Realty Trust, SL Green, Tishman Speyer, Brookfield Properties, Boston Properties and Rockefeller Group.

1221 Avenue of the Americas $53,101,890

New York has a once-in-a-lifetime opportunity to become the epicenter of the fast-growing digital assets space. At Crain’s cryptocurrency breakfast event, featured speaker Adrienne Harris, superintendent of the state Department of Financial Services, will touch on what the new administration means for the expansion of crypto in New York and how the city and the state can promote a new crypto economy.

After her remarks, a sponsored panel discussion will look at what politicians and leaders in business need to do to attract more crypto and blockchain companies to New York.

LANDLORDS

Solow Building $53,775,000

FUTURE OF NEW YORK: CRYPTOCURRENCY

T

SL GREEN BUILDING

International Building, 50 Rockefeller Plaza, 1270 Avenue of the Americas $53,837,696

WEDNESDAY, JULY 20

he 50 highest property tax-paying office buildings in New York City are responsible for nearly $1.7 billion in city tax revenue, according to a Crain’s analysis of PropertyShark data. Citywide, more than 1 million residential, office and industrial buildings collectively pay about $29 billion in property taxes, nearly 50% of the city’s total tax revenue.

For fiscal 2023, office properties alone account for 20% of the overall property tax levy, the office of City Comptroller Brad Lander reported.

The building with the highest tax bill is Boston Properties’ 2 million-square-foot General Motors building at 767 Fifth Ave. Last year its owner shelled out $75.3 million in property taxes.

During the pandemic, depressed property values also reduced their taxes. The market value of office buildings between fiscal years 2020 and 2021 dropped by 16% to $143.7 billion, according to the city’s Department of Finance.

But between fiscal year 2021 and fiscal year 2022, office market values have increased by 9.34% to $157 billion and assessed values, which are what property taxes are based on, have increased by 7.58% to $68 billion. That number is still below pre pandemic values.

Office landlords say that’s impossible since office return rates are still lower than prepandemic levels, and slammed the city for pumping up taxes while their buildings continue to struggle.

Lander expects the office market to continue losing value.

“The pandemic’s impact and the uncertainty of office space use given the shift to hybrid work is a large enough change that we could see the percent decline in the property tax revenues nearly match the percent decline in market values for the city’s office space,” he wrote in a June memo.

The total market value of all of the property in the city has been appraised at a whopping $1.4 trillion for fiscal year 2023, an 8.2% increase from the previous fiscal year and a 2.1% increase from fiscal 2021, before the pandemic, according to the city’s Department of Finance.

QUICK STATS

MetLife Building $60,443,100

BY AMANDA GLODOWSKI AND NATALIE SACHMECHI

General Motors Building $75,285,000

JOIN US

Office buildings are gold mines for city tax revenue

SOURCE: Department of Finance, PropertyShark, Crain’s analysis

THE CITY’S PROPERTY TAX REVENUE IS EXPECTED TO FALL IN FY 2022 $35B

Real property tax revenue

$30B $25B $20B

$29,57B

$15B $10B $5B

2001

NOTE: Includes STAR, 2022 figure based on Executive Budget for FY23

2022 SOURCE: Department of Finance

Vol. 38, No. 26, July 11, 2022—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for no issue on 1/3/22, 7/4/22, 7/18/22, 8/1/22, 8/15/22, 8/29/22 and the last issue in December. Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, PO Box 433279, Palm Coast, FL 32143-9681.

For subscriber service: call 877-824-9379; fax 313-446-6777. $140.00 per year. (GST No. 13676-0444-RT) ©Entire contents copyright 2022 by Crain Communications Inc. All rights reserved.

2 | CRAIN’S NEW YORK BUSINESS | JULY 11, 2022

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CHASING GIANTS

BUCK ENNIS

MIKE MAYER co-founder of window AC startup Windmilll

Windmill’s cool new take on an apartment staple

The East Village startup wants to reward customers for choosing its smart-AC units

T

The upstart: Windmill

“Ryan’s family had all the infrastructure,” Mike Mayer said. he mechanics and clunky aesthetics of the window “It’s one of the reasons we are very competitive.”

And window ACs are just the start, he added. air conditioner, a staple for millions of New Yorkers, “What we’re really trying to do,” he said, “is create a suite of haven’t evolved much since the 1970s—and almost every model looks the same. Why has no one both- beautiful, smart, connected and eco-friendly home air care products. We call it modern air care.” ered to build something better?

Because it’s really, really hard, said Mike Mayer, The reigning Goliath: Whirlpool co-founder of window AC startup Windmilll.

“If you’re making a T-shirt or a pan, it’s pretty Whirlpool, a 69,000-employee home appliance easy,” Mayer said. “But it’s nearly impossible to get maker based in Benton Harbor, Mich., did $22 bilinto this category.” lion in sales last year from a portfolio of brands inThere are complex engineering and regulatory iscluding KitchenAid and Maytag. sues, high shipping costs and the challenge of findHow to slay the giant ing a factory willing to take small orders—not to mention the difficulty of finding investors for a deIt started on a hot August morning in 2018. The cidedly unglamorous product category. brothers were moving Danny Mayer into his new But Windmilll, which sold several hundred units Nolita walkup and discovered the apartment’s winANNE KADET upon launching in 2020 and tens of thousands so far dow AC was busted. Figlia came to the rescue. Over this year, has an unlikely trio of founders poised to lunch, the three men got to talking about how the take on the industry. window AC market was decades behind the times, and they Mayer, co-CEO, has a background in product design, mar- decided they could do better. They spent the next two years keting and customer experience. His brother, co-CEO Danny designing and building an AC unit.

Mayer, is a finance and tech wiz. Their mutual friend, The resulting design reflects Apple aesthetics, down to the co-founder Ryan “Dr. Cool” Figlia, is a manufacturing and sleek, white packaging. The vents are angled at 45 degrees so supply-chain expert who descends from New York City air the air flows up and wafts down rather than hitting you in the conditioning royalty. His grandfather, Tony Figlia, founded face.

Figlia & Sons in the 1960s. The Figlia family now sells, installs The units connect to Amazon’s Alexa voice assistant and to and repairs ACs all over the city, and manufactures its own Google Home, and they also operate via a smartphone app so line of Simon-Aire units for commercial use. you can start cooling your apartment before you get home.

Windmill, backed by $15 million in funding including a $10 Customers who sign up for the eco rewards program and let million growth round of combined equity and debt raised in Windmill remotely regulate their energy use during peak conthe spring, is based in the Figlia & Sons 12,000-square-foot sumption periods get discounts off future purchases. office/warehouse in the East Village. It’s also having its units Elliot Conway, head of Pentland Ventures, the London-based made by the same southeastern China factory that the Figlia investment arm of Pentland Group, said he was impressed family uses to manufacture its Simon-Aire line. when, after an initial meeting in the startup’s early days, the

team returned 18 months later with the promised product.

“They know that to be competitive they have to be obviously premium but fundamentally accessible,” Conway said. “And we think that’s the way to build a very, very large business.”

Windmill units retail for $365 to $415 depending on size.

Windmill didn’t make a first hire until spring 2021, when they found a head of operations to help them handle demand for the summer. Up until then, the three co-founders were personally making deliveries around the city. Roughly 7 million window ACs sell in the country every year, Mayer said, and the tristate area accounts for roughly half the market. Windmill reported a similar breakdown, selling about half its units through its website and the rest through retailers including Home Depot and P.C. Richard & Son. Getting stocked by retailers was another big challenge, Mayer said. He sent dozens of messages to store buyers through LinkedIn until he got a response, and then he followed up with a barrage of email reminders—even when the buyers seemingly ghosted him mid-exchange.

“When you’re a small company with few resources going up against billion-dollar appliance companies, your chances of breaking in are so small,” he says. “The only way you’re going to do that is if you’re relentless.”

The added challenge Windmill is still relatively tiny—the entire team consists of eight full-time employees and five service representatives.

The question is whether Windmill can scale up and offer new products without sacrificing quality.

“They won’t have many quiet days in the office,” Conway said. “But that’s what they signed up for.” ■ Anne Kadet is the creator of Café Anne, a weekly newsletter with a New York City focus. She was previously a city business and trends columnist for The Wall Street Journal.

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RESIDENTIAL SPOTLIGHT

Duty Free Americas president asks sky-high price for luxury condo in 220 Central Park South

Leon Falic is seeking $37.5 million for his four-bedroom unit in the famed Vornado building on Billionaires Row

BY C. J. HUGHES

L

eon Falic, who makes a living selling Scotch at airports, is hoping for a skyhigh price for his Manhattan

home.

Falic, the president of Duty Free Americas, has put his four-bedroom condo, No. 32A at 220 Central Park South, on the market for $37.5 million, according to public records.

The unit, one of the priciest apartments to be listed in the city in June, would realize a significant profit if it trades at its asking price.

A limited liability company tied to Falic’s Florida address purchased the 3,700-square-foot apartment for $26.5 million in 2018. That

$37.5M

LISTING PRICE for No. 32A at 220 Central Park South. oped it three years ago.

VIPs have shelled out big bucks to live at 220 Central Park South.

Ken Griffin, the founder of the hedge fund Citadel, spent $240 million on a penthouse there. That figure, from 2019, stands as the highest home price in the U.S. Monthly charges for No. 32A include condo fees of $9,769 and taxes of $8,515.

Duty Free, which Leon and brothers Jerome and Simon purchased in 2001, likely sustained losses as a result of the drop in air travel during the worst of the pandemic. But the company, which sells liquor, perfume and candy, also owns many shops at car-crossings along the Canadian border, and a new company venture, supplying liquor to cruise ships, has softened some of the pandemic-related blow, Falic has said in recent interviews.

The firm has locations in the state at John F. Kennedy International Airport, in Niagara Falls and in the Thousand Islands region.

Manju Jasty, the agent with the Corcoran Group who has the listing, declined to comment or make her client available. ■

would mean an upside of more than 40% in just four years’ time.

But with the residential market cooling, as interest rates climb and buyers pull back, it’s far from clear that Falic can fetch his price.

The 32nd-floor apartment, however, has a lot going for it. It has four and a half baths, a 670-square-foot great room and multiple views of Central Park. What's more, it's a building that has become one of the city’s most prestigious addresses since Vornado Realty Trust devel-

CORCORAN

AS INTEREST RATES CLIMB, IT’S FAR FROM CLEAR THAT FALIC CAN FETCH HIS PRICE

220 CENTRAL PARK SOUTH., No. 32A, features four bedrooms, four and a half baths and a great room spanning 670 square feet

ON POLITICS

‘Good cause’ eviction measures doomed for now

T

he U.S. Supreme Court whelmingly passed the good-cause understandably has taken bill almost a year ago, and Mayor up most of the public’s Kathy Sheehan, a Democrat, attention lately, but a New proudly signed it into law. Modeled York judge made a consequential on proposed state legislation, it decision last month that will affect included a requirement that landthousands of state residents. lords could not evict a tenant or Judge Christina Ryba of refuse to renew a lease state Supreme Court in unless one of 10 possible Albany struck down that conditions were met, such city’s “good cause” evicas failing to pay rent or causing a property to be a tion law, siding with landnuisance. Language in the lords who argued the legislation limited rent tenant protection violated increases to 5%, with state law. A blow for houssome exceptions. ing activists and tenant Ryba ruled that Albaorganizations, the ruling likely will reverberate ny’s measure was in conROSS BARKAN flict with state law throughout the state.

For Democrats in the because it impeded landLegislature who have tried and lords’ access to courts and limited failed to pass a state good-cause law remedies provided by the state. since 2019, Ryba’s decision adds The lawsuit was filed against urgency to their mission.

Albany’s law, but the legal rationale Albany’s Common Council over- for its undoing probably could be

applied to Beacon, Hudson, Newburgh and Poughkeepsie, all of which have passed a version.

Landlords and real estate developers view good-cause measures as infringing on private property rights and potentially capping future development. If rents can’t be raised rapidly or supposedly problematic tenants can’t be easily evicted, how can the business of real estate continue? The question is understandable if disingenuous. New buildings under good cause could still advertise market-rate rents and seek affluent tenants. And evictions would still be legal; they simply would be less capricious, with tenants enjoying new legal rights against wellheeled landlords.

Given the predatory nature of the rental market in big cities and rural areas alike, good cause could be a crucial bulwark against an escalating eviction crisis.

Democrats in the Legislature, despite their supermajorities, resisted passing a good-cause law this year. Most tenants in New York’s cities live in apartments that belong to large real estate portfolios, but the real estate industry was able to argue that so-called momand-pop landlords would be victimized. Corporate landlords were happy to use those homeowners as cover to ensure that tenant protections were not strengthened.

In the landlord-tenant relationship, landlords enjoy the leverage of their wealth and equity. Lawmakers should level the playing field.

Progressives and tenant advocates will have their work cut out for them when the Legislature reconvenes next year. The sophisticated real estate industry’s lobby has cultivated a large number of Democrats in the Assembly who don’t want to go against it. Unless pro-

gressives figure out how to move a few more of those Democrats, good cause will remain merely a theory.

Quick takes ● The June primary in New York— another is coming Aug. 23 for state Senate and congressional races— was a victory for incumbents. Leftand right-wing insurgents alike failed to knock off sitting legislators. ● Why can’t Mayor Eric Adams tell the public how many affordable housing units he’d like to build?

With no goalposts, the administration risks accomplishing too little. ● The city should have better anticipated the lifeguard shortage at public pools and beaches. Lines are miserably long in working-class neighborhoods where New Yorkers desperately need to cool off. ■

Ross Barkan is a journalist and author in New York City.

4 | CRAIN’S NEW YORK BUSINESS | July 11, 2022

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Announcing the 2022 Empire Whole Health Hero Awards Nominate an individual or organization that is committed to innovation and leadership Visit Crainsnewyork.com/Empire2022 to nominate.

Deadline to submit is Sept. 16, 2022.

Empire will celebrate the 25 honorees at a special event and feature them in Crain’s New York Business. Honorees will also be recognized at a New York Mets game to celebrate with friends and family.

Services provided by Empire HealthChoice HMO, Inc. and/or Empire HealthChoice Assurance, Inc., dba Empire BlueCross BlueShield. Independent licensees of the Blue Cross and Blue Shield Association, an association of independent Blue Cross and Blue Shield plans.

Cain’s New York Business newsroom is not involved in the judging or selecting of the honorees. Employees of Anthem, Inc., Empire BlueCross BlueShield and Crain’s New York Business associated with these awards, and their respective parents, subsidiaries, affiliates, and advertising and promotion agencies as well as the immediate family (spouse, parents, siblings and children) and household members of each such employee are not eligible. © 2022 Empire.

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6/24/22 7/6/22 2:03 8:14 PM AM

ASKED & ANSWERED Association

INTERVIEW BY EDDIE SMALL

L

ou Coletti is celebrating his 25th year serving as president of the Building Trades Employers Association. The organization dates back to 1903, and Coletti maintains that it plays an essential role in keeping good blue-collar jobs in the city—a role that has only grown in importance as many of the other industries that provided such jobs have left town. “The only blue-collar industry left that is going to sustain and grow the middle class to rent these apartments, where they can raise their families in New York, is the union construction industry,” he said.

What has changed the most about construction in the city during your 25 years leading the BTEA? The dramatic increase in costs. The cost of liability insurance has increased to the point where it’s really difficult and expensive to build in the city. The cost of insurance to build in the city is about $41 per square foot, compared to $5 in New Jersey and $3 in Connecticut.

What do you make of the recent report showing more projects were filed during the first quarter of 2022 than in any quarter since the end of 2014?

It’s a clear indicator that, despite the impact of Covid,

JOB TITLE President and CEO of the Building Trades Employers Association AGE 70 GREW UP The Bronx and Elizabeth, New Jersey RESIDES Warren Township, New Jersey EDUCATION Bachelor’s of Arts in English from Rutgers University, Master’s in Public Administration from NYU FAMILY MAN Coletti is married with two sons and five grandchildren–three boys and two girls BOOKWORM Coletti enjoys reading and particularly likes the spy novels by Robert Ludlum, best known for his Jason Bourne series, and historians like Doris Kearns Goodwin. “There are so many valuable lessons to learn from history,” he said. “That’s one of the things I don’t think we’re doing enough of in this country.”

people still want to live and work in New York. I see a lot of office renovations because people are adjusting their workspaces to the new workplace environment. You’ll continue to have selective new commercial developments as well, but perhaps there won’t be as many as before Covid. The construction industry has always been sensitive to market forces.

The cost of materials and the breakdown of the supply chain have dramatically increased the price of construction. Private owners have been more understanding of how they have to adjust their prices. The government has not. That legislation was based on what the government did in 1974 when we had the fuel crisis, where they allowed for adjustments in prices for contracts already bid because fuel costs went through the roof. We’re in that same position now.

Why have major construction projects faced so much community pushback recently?

It’s been cyclical. I’ve lived through cycles where that community opposition had an impact, and projects were delayed or never moved forward. Then, there was a period where that seemed to wane, and now we seem to be in an era where it’s back, but the pressures are a little different. They’re looking for you to hire community residents. They’re looking for you to do business with local businesses. They want to grow small and minority- and women-owned businesses.

Is there a type of project the city needs more of?

The city really has to take a look at the older commercial building stock. To turn around those buildings with the new technology that offices now require would be enormously expensive. What the city should do is allow those spaces to be converted to residential space. You have to change the zoning laws. It’s often costlier to renovate those older buildings rather than just come in clean and build new. ■

BUCK ENNIS

LOU COLETTI Building Trades Employers

Why did BTEA push the legislature to pass a bill— which it did—to let state contractors lobby for new budgets on public construction projects?

DOSSIER

2022

HR LEADERS Crain’s New York Business wanted to feature top leaders involved in human resources that have demonstrated the ability or power to affect change.

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6 | CRAIN’S NEW YORK BUSINESS | JULY 11, 2022

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SPONSORED CONTENT

FINANCE

talking

Q&A: Signature Bank’s CEO wants to clear the air on crypto

BY AARON ELSTEIN

three or four years believe rates will come down and we don’t see them as much.

The crypto community embraced your bank. Do you use crypto?

I personally do not, and the bank has no exposure to crypto. The bitcoin loan is paid off. There’s a misconception that Signet, our blockchain payments platform, is a stablecoin. It’s not. It’s a digital representation of the U.S. dollar that allows clients to transact when the Federal Reserve isn’t open. I’d like to clear the air: We’re not a crypto bank.

But the bank does provide services to stablecoins, right?

We have no exposure to algorithmic stablecoins [the type that have been unstable]. We have a lot of deposits from the crypto world, but liquidity is pretty strong in terms of cash and

COURTESY OF SIGNATURE BANK

I

t’s been a wild ride for Signature Bank. The $120 billion-in-assets bank that serves New York real estate and small-business owners saw its stock price soar from $75 a share to $375 after the crypto world discovered Signature has an in-house blockchain-based payment system. It also provides services to certain stablecoins and made a single $100 million loan secured by bitcoin. Recently Signature’s stock has fallen in half, leaving CEO Joseph DePaolo to spend a lot of time explaining that the bank is the same as it ever was.

How does the New York economy look?

I’m bullish on New York. Tourists are coming back. Yankee Stadium is full again. These are very encouraging signs to me. But everything is based upon crime or lack thereof.

Solve crime issues and people will go out more. People are nervous, I understand it. I hope Mayor [Eric] Adams doesn’t forget where he came from and fights crime.

DEPAOLO investment securities. We have no liquidity issues.

I get the feeling you spend a lot of time explaining this.

We try to explain. We hired a team in 2018 that had clients in the bitcoin ecosystem, that’s how we got into this. But in order to use our blockchain payment system, both sides of the transaction must be clients of the bank, and we vet them carefully. We have to stay on top of these things.

Are rising interest rates stressing out your borrowers?

I don’t think they’re stressed out yet, but some feel stress. Those with loans maturing in the next year or two are coming to us for modifications at a rapid pace. Those with

What could he do that he isn’t doing?

I’d like him to be more visible in the city and less in other parts of the country.

Do vacancy rates in office spaces concern you?

I don’t think it’s dire. Everyone is paying their mortgages. There is nothing troublesome so far from office landlords and those were clients we helped in the pandemic.

Your bank is hiring a lot of people these days. Why? Our modus operandi since we started has been to hire the best teams from other banks. We can’t control economic cycles, so we always have to adjust, but it’s always a good time to bring people who are good. I’ve worked here since the bank started.

The other two co-founders are still here, too. ■

HEALTH CARE

Controversial nursing home firm buys Bay Ridge hospital site

BY MAYA KAUFMAN AND EDDIE SMALL

T

he Allure Group, the controversial nursing home operator, has purchased the former Victory Memorial Hospital site in Bay Ridge for $160 million, records show.

The for-profit company purchased the site from investor Pearl Schwartz earlier this month, shortly after she agreed to buy it from real estate developer Abraham Leser for $153 million and then filed for bankruptcy protection, according to deed transfers.

The company took out a new $54.5 million mortgage to help finance the deal, records show.

The deal includes the former hospital building at 92nd Street and Seventh Avenue—which is home to outpatient medical center SUNY Downstate at Bay Ridge and a forthcoming $18.6 million standalone emergency department run by Maimonides Medical Center—as well as a neighboring parking garage. The Allure Group already owns the nursing home next door, Hamilton Park Nursing and Rehabilitation Center.

The Allure Group operates six nursing homes and rehabilitation centers in the city, but founder and Chairman Joel Landau’s health care enterprise extends much further.

He co-founded and leads Aurora Health Network, which operates more than 6,000 nursing home beds across the U.S., and private-equity firm Pinta Capital Partners, which makes investments of up to $10 million in small to midsize health care companies.

A muddy past The company made headlines during the de Blasio administration, after it purchased Lower East Side HIV/AIDS nursing home Rivington House from a nonprofit in 2015 and paid the city more than $16 million to remove deed restrictions on the property. The city’s action enabled Allure to flip the property to a luxury condominium developer for a $72 million profit.

Landau did not return Crain’s requests for comment.

Allure bought the site as part of a Chapter 11 bankruptcy case filed by Schwartz in December through limited liability company Bayridge Lok

Holdings, court records show.

Schwartz borrowed $3 million from another firm to finance the purchase but needed new financing to satisfy her lender and close on the contract, according to court records.

Leser had purchased the site for $44.9 million in 2009, property records show. A representative for Leser did not respond for comment.

Schwartz’s deal with Allure as part of the bankruptcy proceedings enabled her to close on the original purchase and then flip it to Allure at a profit of about $7 million.

Real estate deals done through bankruptcy are typically exempt from transfer and mortgage recording taxes, but Schwartz’s lawyer said that completing the sale—not avoiding taxes—was the purpose of filing for bankruptcy.

The U.S. bankruptcy court judge who approved the plan said that Schwartz’s deal with Allure was made “without collusion, in a fair and good faith manner, and from arm’s-length bargaining positions,” according to court records.

A representative for Schwartz did not respond to a request for comment. ■

TAX

WHAT FACTORS SHOULD NEW YORKERS CONSIDER WHEN PLANNING TO CHANGE THEIR TAX RESIDENCE? Our Private Client Services team has seen more clients than ever before change or plan to change their state of tax residence from the tristate area to low-income-tax or no-income-tax states. We find that many taxpayers assume that changing their “tax home” is as easy as spending less than six months in their current state or changing their driver’s license.

JONATHAN CURRY-EDWARDS, CPA Partner jcurryedwards @grassicpas.com 914-849-0332

Jonathan Curry-Edwards is a partner in the Private Client Services group at Grassi. He specializes in tax planning and compliance for high-networth individuals, families, business owners and real estate professionals.

The reality is this: Tax residency is complex and involves a number of rules and factors that tax auditors use to claim former residents never changed their tax home. New York, in particular, is known for aggressively pursuing tax residency audits.

First, it is important to understand the definitions and factors of tax residency so that residents can properly plan their relocation. New York’s Nonresident Audit Guidelines define a tax resident as one who is domiciled in New York state, or one who is not domiciled in New York state but who maintains a permanent place of abode in the state for substantially all of the taxable year and spends more than 183 days of the taxable year in the state. Such a person is referred to as a statutory resident.

Domicile is defined in the guidelines as the place that an individual intends to be his or her permanent home— the place that the individual intends to return to whenever the individual may be absent. When determining a taxpayer’s domicile, New York looks at primary factors first and “other factors” next. Primary factors include the home’s location, the individual’s

Proactive planning is the best strategy for New Yorkers considering changing their tax residency. active business involvement, the individual’s time spent in the state, where items “near and dear” to the heart are kept, and family connections. Other factors include, in part, the state issuing a driver’s license and the location of vehicles, where the taxpayer is registered to vote, and the address used for bank statements and bills.

Regarding New York statutory residency: Before tax year 2022, “substantially all of the year” generally meant a period exceeding 11 months. Beginning with tax year 2022, this has changed to exceeding 10 months. This is a small change that could have significant impact on taxpayers relying on this nuance to avoid being a New York statutory resident.

When planning to change the tax domicile, it’s important to know that it is based on facts and circumstances, so having as many primary and other factors as possible in favor of the new tax home is crucial. Keeping contemporaneous documentation is equally important. Tracking and documenting where an individual is spending days as they occur is much easier than trying to re-create the calendar with substantiation up to three years down the road.

Documenting lifestyle changes that support “leaving and landing” in the new tax home is crucial. For example, selling or renting out a New York home and buying a home in another state is a significant factor in favor of changing domicile, as are changing office locations and moving pets and valuable artwork and jewelry.

Proactive planning is the best strategy for New Yorkers considering changing their tax residency. The best piece of advice: Consult a tax adviser early and often to create the plan and documentation needed to accomplish goals.

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president & ceo K.C. Crain group publisher Jim Kirk publisher/executive editor

EDITORIAL

Frederick P. Gabriel Jr.

Ferry agency would sail smoother by taking sound advice when it can million gap comes from poor oversight and financial mismanagement by the EDC, which is in charge of the contract with the operator, Hornblower, a private company.

One egregious example, Crain’s reporter Caroline Spivack writes, is that the EDC paid $8.4 million for a premium vessel but received a lesser ferry instead. Officials did not demand that Hornblower refund the $2.8 million difference.

That hints at an uncomfortably close relationship between the EDC—a semi-independent agency—and Hornblower.

Lander has recommended that the EDC open the bidding process to find a new operator after Hornblower’s contract expires in September 2023. To its credit, the EDC has agreed.

However, the agency largely pushed back on the findings of the 50-page audit report, as well as a list of 11 sensible-seeming reforms. For example, the comptroller’s office recommends

THE EDC’S RELATIONSHIP WITH HORNBLOWER SEEMS UNCOMFORTABLY CLOSE Mayor Bill de Blasio launched plans for a fleet of boats and docks, through the end of his mayoralty last year.

In that time, the audit said, the EDC reported spending $534 million on ferry operations but actually spent $758 million.

According to Lander, the $224

L

assistant managing editor Anne Michaud data editor Amanda Glodowski audience engagement editor Jennifer Samuels art director Carolyn McClain photographer Buck Ennis senior reporters Cara Eisenpress,

Aaron Elstein, Eddie Small reporters Maya Kaufman, Brian Pascus,

Jacqueline Neber, Natalie Sachmechi, Caroline Spivack op-ed editor Jan Parr,

opinion@crainsnewyork.com

full disclosure of ferry-related spending in the future. EDC “will not change its audited financial statements,” it said in response, but instead will provide “alternative annual reporting” to be published on its website.

That seems like a dodge. Since when does a city entity get to choose the degree and form of its financial transparency?

Better disclosure just might head off hundreds of millions more in unreported costs.

Meanwhile, Mayor Eric Adams

needs to own the future of NYC Ferry. Lander’s report shellacks the much-maligned de Blasio, whose ferry service was a subsidized pet project.

When asked about the Lander report, an Adams City Hall spokesman said, “We are keenly aware there is room for improvement.” That’s good.

NYC Ferry must navigate toward a fiscally responsible future—with financial transparency and, perhaps, a new operator at the helm. ■

sales assistant Ryan Call to contact the newsroom:

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

ashley.maahs@crain.com EVENTS

A diversified, hybrid approach is the best way to meet emissions goals ast month a representative of the Sane Energy Project and No North Brooklyn Pipeline penned an opinion piece for Crain’s (“National Grid’s pipeline dream weakens state’s attempts to address climate change,”) that leveled numerous bad-faith attacks against National Grid’s plan for an equitable clean energy transition in New York. Without evidence, the piece claimed National Grid stands in the way of New York’s climate change mitigation goals.

The opposite is true.

The fact is National Grid’s vision would exceed the decarbonization benchmarks set out in the Climate Leadership and Community Protection Act. Equally important, it keeps energy prices affordable and maintains reliable service.

National Grid’s vision for a fossil-free future is built on three pillars: increasing energy efficiency; supporting widespread adoption of non-gas energy sources, including targeted electrification powered by renewable sources, such as wind and solar; and replacing fossil fuels with clean alternatives,

managing editor Telisha Bryan

digital editor Taylor Nakagawa

OP-ED

BY PHILIP DECICCO

editor-in-chief Cory Schouten,

cory.schouten@crainsnewyork.com

BUCK ENNIS

I

n a city with 520 miles of waterfront, ferry service is a marvelous concept for commuting, employment and enjoyment. The trick is to do it right. A new audit from Comptroller Brad Lander’s office demonstrates that New York hasn’t gotten it right yet. What’s disheartening is that the city agency responsible, the Economic Development Corp., is resisting proposed improvements.

The comptroller’s audit released last week scoured the financials of NYC Ferry from June 2015, when

EDITORIAL

such as renewable natural gas and green hydrogen.

This hybrid approach is the most realistic, efficient and cost-effective way to meet our emissions goals. Millions of households rely on natural gas for heating, hot water, cooking and drying laundry.

Thousands of businesses also rely on natural gas. Hospitals rely on the gas network as an emergency backup source of power.

Many of these homes and businesses cannot be electrified and, for those that can, the costs of retrofitting existing buildings and replacing appliances and machinery that rely on gas power are significant. In addition, the investments in generation and transmission infrastructure needed to electrify these homes and businesses far outweigh the costs of maintaining, improving and decarbonizing our existing gas network.

The costs of electric For these reasons, the potential economic impacts of pursuing an electrification-only approach are daunting. The costs of retrofitting homes and apartments will likely increase already-high housing

prices, with a disproportionate impact on historically disadvantaged communities. At the same time, rising electricity rates and expensive equipment conversions will increase the already-high cost of doing business in New York, potentially driving companies to relocate out of state.

A diversified approach Even if we wanted to, we cannot electrify every building in New York with only renewable energy. The New York Independent System Operator 2022 Power Trends Report emphasizes that wind and solar cannot provide all the energy New Yorkers require and that the gap between the amount of energy New York needs and the amount renewable sources can supply will widen as we rely more on electricity.

The city’s Pathways to Carbon-Neutral NYC study, commissioned by the mayor’s Office of Sustainability, found that a high-electrification approach to meeting the goals of the climate leadersip-community protection act is not only more expensive than a diversified approach that incorporates fossil-free fuels, but it

is also less effective, achieving a lower net reduction in emissions.

National Grid’s vision avoids these problems by incorporating fossil-free fuels as a complement to renewable electricity. Renewable natural gas is produced through a process that captures methane from landfills, farms, wastewater treatment plants and other sources and repurposes it as fossil-free fuel.

Because methane is one of the most potent and plentiful greenhouse gasses, removing it from the atmosphere is vital. Green hydrogen is another important fossil-free fuel produced by separating hydrogen out of the water molecule, leaving only water vapor behind.

Investing in fossil-free fuels as part of a diversified clean energy portfolio, instead of relying on a single solution, will allow us to meet the critical climate change mitigation goals set out in the climate leadership-community protection act without imposing unsustainable costs on New Yorkers and businesses. ■ Philip DeCicco is vice president and deputy general counsel of National Grid.

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8 | CRAIN’S NEW YORK BUSINESS | JULY 11, 2022

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OP-ED

BY KAREN HAYCOX

F

or Pride Month I prayed that we may finally move forward on construction of Manhattan’s first LGBTQ-friendly senior affordable housing development.

Construction of Haven Green, stalled in the courts by opponents since the summer of 2019, will provide 123 homes affordable to low-income seniors in Little Italy, at a time when city rents are rising at the highest rate in recent history.

Thirty-seven homes will be reserved for seniors experiencing homelessness.

neighboring 40-year-old affordable rental building. Community engagement has already resulted in the near doubling of green space.

Safety and affordability Upon opening, Haven Green will offer the community flexible activity space, on-site and community services, and affordable housing development and preservation services. Uniquely for Manhattan to date, it will provide an opportunity for our LGBTQ elders, who are at increased risk of poverty, discrimination and violence: Nearly 1 in 3 LGBTQ adults ages 65 and older live at or below the federal poverty level. In the bisexual and trans community, nearly 1 in 2 or at or below the federal poverty level. Older LGBTQ adults in senior living facilities are especially vulnerable to discrimination and abuse.

Beyond being a beacon of inclusiveness, affordability and safety, Haven Green will be built to passive house standards to maximize

OPPONENTS CLAIM SUPPORT FOR AFFORDABLE HOUSING AS LONG AS IT’S ELSEWHERE It will include nearly 16,000 square feet of publicly accessible garden space, which was designed using a community engagement process, and the preservation—via an innovative deal confirmed with City Council in the fall of 2021—of a

energy efficiency, reduce emissions and maintain a healthy living environment.

Opponents of Haven Green— who understandably love Elizabeth Street Garden, the privately controlled space on city-owned land opened to the public only once plans for affordable housing were announced—endorse a revisionist version of the complex history of the site.

Ultimately, it is a history rooted in a not-in-my-backyard philosophy. Opponents claim support for affordable housing as long as it is built elsewhere; in this case their recommended site is on the west side of Community Board 2, where—coincidentally (?)—all the recently constructed affordable homes are. Notably, only 118 affordable homes have been built in Community Board 2 in nearly a decade.

The number of apartments available to rent in our city is a complex story of intense demand and inadequate supply. Our population has grown by more than 629,000 residents in the past decade, but we only created 185,000 new multi-

HAVENGREENCOMMUNITY.NYC

Stop fighting Manhattan’s first LGBTQ-friendly senior affordable housing development

family units—only 0.06% of which exist in Community Board 2.

We must do more Haven Green will deliver 16,000 square feet of year-round, publicly accessible green space and 123 desperately needed homes affordable to low-income seniors. But it is not enough. We must do more. We sup-

port the recently approved responsible development of the proposed alternate site as well. It is not either-or. It is both-and. ■ Karen Haycox is CEO of Habitat for Humanity New York City and Westchester County, a co-developer of Haven Green and president of the Habitat NYC Community Fund.

OP-ED

BY ERIC LINZER

N

ext month the Department of Financial Services will announce health insurance premium rates for individuals and small businesses in 2023. The cost of care is a challenge for many families and employers, and health care costs in New York are among the highest in the country. When these costs rise, so do health insurance premiums, because the cost of coverage reflects the underlying cost of care.

With state regulators reviewing health plans’ proposed rate increases for next year, it’s important

pected to remain. ● Prescription drug costs: Drug companies started the year by increasing the prices on nearly 800 brandname drugs by an average of 5%, with some raising their prices by double digits for critical therapies that treat cancer, multiple sclerosis, hypertension and attention deficit hyperactivity disorder.

National data projects drug prices will rise in 2023 and 2024 above recent historical periods. State laws enacted in 2021 and bills the Legislature approved last month restricting health plans’ ability to contain out-of-control prices while doing nothing to ensure consumers get the most appropriate drugs at the lowest cost will exacerbate the challenge to restrain prescription drug spending. ● Provider costs: National data forecasts spending on hospital, physician and clinical services will accelerate, contributing to higher costs. Further consolidations among hospitals and physician practices, enabling providers to leverage increased reimbursements, has contributed to higher prices for New York consumers and employers. Studies show that con-

PREMIUM RATES MUST FULLY REFLECT THE GROWTH IN HEATH CARE COSTS to understand what’s contributing to premium growth. Among the major factors: ● Covid-19: Care deferred in the first half of 2020 has largely resumed, resulting in more complex and more costly treatment. At the same time services related to Covid-19, including care for individuals infected, testing and vaccination, are ex-

solidation does little to improve the quality of care for patients or restrain the growth in prices for provider services, but it does add to premium rates. ● Mandated benefits: New York requires coverage for more than three dozen specific treatments or services, including some that go beyond evidence-based guidelines recommended by major national health organizations. While the cost of some mandated benefits in isolation may be relatively small, their collective impact drives up the cost of insurance coverage for every New Yorker. ● Health insurance taxes: New York collects more than $6.5 billion annually in taxes on health plans, which increases annual premiums for the average family by more than $1,000. These are the third-highest taxes in the state, behind personal income taxes and sales taxes. ● Loss of federal funding: The American Rescue Plan Act included temporary federal subsidies to assist low- and moderate-income individuals with their premiums. Unless Congress extends them, this funding will expire this year, affecting more than 138,000 New York residents. These individuals could lose $1,453 annually if these subsidies expire, which would cause

GETTY IMAGES

Drug and provider costs, taxes, mandates: why health insurance premiums are rising

their premiums to increase by 58%.

It’s all expensive Every New Yorker deserves access to high-quality, affordable care and coverage, but health insurance is expensive because health care is expensive. Affordability is the most pressing health care issue for employers and consumers, and policymakers should take steps to address New York’s high health care costs.

These steps should include addressing exorbitant drug prices, ensuring

provider consolidations benefit employers and consumers and don’t merely result in higher prices, and reducing taxes on health insurance.

Until then, it is critical that the premium rates the state will approve for 2023 fully reflect the factors contributing to the growth in health care costs. ■ Eric Linzer is president and CEO of the New York Health Plan Association, which represents 29 managed care plans.

Write us: Crain’s welcomes submissions to its opinion pages. Send letters to letters@CrainsNewYork.com. Send op-eds of 500 words or fewer to opinion@CrainsNewYork.com.

Please include the writer’s name, company, address and telephone number. Crain’s reserves the right to edit submissions for clarity.

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Advertising Section

PEOPLE ON THE MOVE

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

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She joins NFF from TruFund Financial Services.

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Accenture Jack Azagury has been appointed by Accenture as group chief executive – Strategy & Consulting. The $15 billion business unit includes Accenture’s leading industry and enterprise functions, as well as applied intelligence, innovation and strategy practices. A 26-year veteran of Accenture, who previously served as market unit lead for the US Northeast, Azagury brings deep strategy, technology, and client experience to his new leadership role as well as extensive global expertise.

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Group PMX Jenny Freeman, PE, LEED AP, joins Group PMX as Managing Director of Buildings, responsible for leading the firm’s market comprising the healthcare, life sciences, higher ed, cultural, corporate/ commercial, and government sectors. Jenny brings 30+ years of experience in the preconstruction, planning, and construction of major overbuild, modernization, renovation, and ground-up projects for the NY area and the nation’s premier hospitals and cultural institutions. An active industry leader, she serves on the Board of Professional Women in Construction. Jenny will focus on expanding PMX’s portfolio by leveraging the organization’s best-in-class project/program/ construction management and business consulting/commercial management services.

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10 | CRAIN’S NEW YORK BUSINESS | July 11, 2022

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POLITICS

Krueger: Penn Station revamp requires MSG move

“IF THE CITY DOESN’T GIVE THEM AN EXPANSION THEY HAVE TO GET OUT.” improvement of Penn Station,” said Krueger, who chairs the Senate Finance Committee. “Why isn’t anyone taking action to make sure they know they can’t stay?”

Natalie Ravitz, senior vice president for communications and marketing at MSG Entertainment, said conversations with government officials have been premised on the Garden remaining in its current location.

“It is unfortunate that Sen. Krueger is ill-informed on this matter, as the MTA, the governor and the mayor have all clearly stated that their goal is to fix the existing Penn Station,” Ravitz said.

Janno Lieber, chairman of the Metropolitan Transportation Authority, also dismissed the idea that MSG would relocate last month at a Crain’s breakfast. He said that, realistically, it would take 10 years to move the Garden “Our role,” he said, “is to come up with a plan that doesn’t rely on the Garden.”

Wildly differing cost figures The Senate hearing featured testimony from leaders of the MTA and Empire State Development Corp. discussing how the various entities involved in the project would pay for the Penn Station renovation. The multiple-decade plan proposed by Gov. Kathy Hochul involves building mixed-use skyscrapers around the travel hub to fund station improvements and new train tunnels. Krueger cochaired the hearing with Sen. Leroy Comrie of Queens and Sen. Luis Sepúlveda of the Bronx.

Other entities involved include the Port Authority of New York and New Jersey, New Jersey state government, Amtrak and Vornado Realty Trust.

Krueger said that despite the in-

city doesn’t give them expansion of that timeline, they have to get out in a year. You’d have to build a new one [arena] somewhere else.”

KRUEGER At the time of the extension, the City Planning Commission said a 2023 deadline would create an opportunity for city and state governments “to reach an agreement with Madison Square Garden and the railroads for a comprehensive plan to relocate the arena and rebuild Penn Station.”

Crain’s has previously reported that the numbers indicate that paying Dolan to move the Garden and building an arena nearby—possibly in the space west of Moynihan Train Hall—would cost taxpayers as much as $5 billion.

Krueger argued that settling with the owners could end up being cheaper than building a subway

BUCK ENNIS

A

high-ranking state senator who has led oversight hearings into a Penn Station revitalization plan says a deal is close on the overhaul and should include the relocation of Madison Square Garden.

Manhattan Sen. Liz Krueger said during an interview with Crain’s that she believes a deal for a new Penn Station will be struck before the end of the year.

Her remarks, which run contrary to prior statements made by public officials involved with the plan, followed a six-hour state Senate hearing in late June involving principals of the Penn Station revitalization plan.

“Everyone—planners, advocates, communities, governments—all seem to agree that they are in absolutely the wrong place for the expansion and modernization and

ability of any of the major players to give a firm answer on how much the renovated station will eventually cost, the project would likely move forward with a final agreement within the next six months to secure federal funding.

“People feel we’re up against the clock for federal commitment of funds where people aren’t sure Democrats will control both houses of Congress after December 31,” Krueger said. “They feel if we’re going to strike the best deal possible for federal funds and Amtrak funds, then we have to get this all beyond a handshake before the end of the year and get hopefully an enormously large check from the federal government.”

The federal contribution could reach $7 billion, Krueger said.

There have been conflicting statements about the cost of the project and the amount of the federal contribution.

Hochul’s office estimated in November 2021 that the project would cost $6.7 billion.

Empire State Development estimated the total public cost for the renovation, including improving the Hudson River Tunnel, could reach up to $40 billion, according to a May report from Independent Budget Office, with federal authorities paying 50%, while New York and New Jersey split the rest. Much of New York’s share is expected to come from tax revenue generated by new office and retail space, as much as 20 million square feet, constructed

by Vornado.

NY SENATE/FLICKR

BY BRIAN PASCUS

station around the existing arena.

“We’re going to spend up to $5 billion more than we need to because they’re on top of everything,” she said. “Even if the government has to be of assistance to Madison Square Garden, if you’d save mon-

ey, in total, for the project and get the transportation hub you need, then you move Madison Square Garden.” ■ Aaron Elstein contributed reporting.

LUXURY HOME OF THE WEEK Advertising Section

Trouble in the Garden The 20,000-seat MSG, built over the current Penn Station, has held a 50-year operating permit with the city since 1963. It secured a 10-year extension in 2013 that expires next year. The arena was granted a property tax exemption in 1982.

Knicks and Rangers owner James L. Dolan spent roughly $1 billion to renovate the arena in 2013.

Krueger said that while she recognized that Dolan renovated the Garden less than 10 years ago, “there’s no obligation” from the city to keep the arena in its current location and that “it’s private ownership on property they don’t own.”

Mark Conrad, professor of sports marketing at Fordham University, said MSG Entertainment carries a permit to operate and holds an agreement with the city to develop and use the land, but it doesn’t own the land. MSG Entertainment does own the air rights, however, Conrad said.

Kate Slevin, executive vice president of the Regional Plan Association, confirmed that the city controls the operating permit for MSG Entertainment to use the land and that its ability to operate the arena rests on that agreement.

Krueger noted that the operating permit expires in 2023. “The point is: They only have permission to stay one more year,” she said. “If the July 11, 2022 | CRAIN’S NEW YORK BUSINESS | 11

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IN THE MARKETS

Revlon seeks bankruptcy bonuses for key employees, arguing their talent is in demand

SPECIAL INCENTIVES TO THOSE WHO LED THE COMPANY TO THE BRINK

BLOOMBERG

T

o discourage key employ- employees must be paid “beyond ees from bolting while salary and their normal course botheir company is in bank- nus opportunity.” ruptcy, Revlon wants to pay out $16.4 million in cash bo- Among the most generous nuses, one of the most generous Bankruptcy bonuses are comprograms of its kind. monly requested by companies In a filing last week, the shortly before or just after company detailed a plan they file for Chapter 11. to award bonuses to 160 While they deliver special eligible employees while incentives to the very peospecifically excluding ple who led the enterprise CEO Debbie Perelman, to the brink, the bonuses daughter of Chairman are also commonly apRon Perelman. The averproved. Judges typically rely on the advice of conage cash bonus would be sultants, employed by about $68,000 and would troubled companies, who help offset the losses cerAARON ELSTEIN argue bonuses are necestain employees suffered when shares they had sary to deliver the best been awarded lost value with outcome for creditors.

Revlon’s bankruptcy filing. About But creditors and trustees ap6% of Revlon’s workforce would be pointed by the Department of Justice often dispute the bonuses are needed. Last year the Government Accountability Office recommended Congress crack down on bonuses eligible for the cash bonuses. awarded to senior executives just “Attrition could cause costly dis- before companies succumb to ruptions that threaten the success bankruptcy. Lawmakers have taken of the . . . restructuring process,” no action.

Revlon’s proposed bankruptcy Revlon said in a court filing, so key

bonus program is one of the most generous with a size ranking in the 96th percentile, according to an analysis submitted in court by consulting firm Willis Towers Watson.

“Its total cost is among the highest of the retention plans from [sim-

ilar] Chapter 11 cases,” Willis managing director Douglas Friske said in a court filing.

Higher bonus costs “are not unexpected,” Revlon argued, because wages are rising broadly and there is “higher demand for talent.”

Revlon didn’t identify the names or positions of those eligible for bankruptcy bonuses. It said the employees’ titles include words such as “chief,” “director,” “senior vice president” and “vice president.” ■

ON REAL ESTATE

What if the megaproject surrounding Penn Station added much-needed apartments instead of cubicles? tial market amid Covid has been the polar opposite of what has been happening with its office market, despite equally dire predictions for both sectors at the beginning of the pandemic. Manhattan rents are hitting record highs as the borough’s vacancy rate plummets, and although activity in its housing market has been slowing as of late, this is mainly due to a lack of inventory, not a lack of demand.

You can see this in property values as well, which is where the tax revenue will ultimately come from.

The city’s residential buildings are down just 0.2% from their pre-pandemic values, at about $347 billion, while its office buildings are down 7% at about $160 billion, according to estimates from the Department of Finance. A recent report from City Comptroller Brad Lander’s office said that even just a 5% decline in office building values would lead to a $200 million loss in property taxes.

Granted, the luxury housing Vornado is most famous for is not the type of housing the city is clamoring for more of, and “right next to

PENN STATION

BUCK ENNIS

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ew York’s office build- come. ings are in trouble. Even The state’s main response to the city’s major office concerns about adding a glut of landlords seem to at new office space has been to stress that this is an extremely least tacitly understand long-term plan, so the this by now, as their current state of the office once-constant stream of market doesn’t necessaripredictions that grateful workers will start floodly reflect how demand will look once these coming back to their desks in just a few more weeks has mercial towers actually arrive. Few would have dried up after two years.

So now is the perfect predicted in 2019 that time to launch a major New Yorkers were about new Manhattan office start working from EDDIE SMALL to project? home in huge numbers, Maybe “perfect” is too so a shift back to more strong a word. Regardless, shiny in-person work by the time Vornanew office towers remain a major do’s buildings are open for busipart of the state’s plan to redevelop ness isn’t out of the question. the much-maligned Penn Station.

New questions about the Follow the demand? megaproject arise seemingly every But betting so strongly on such a day, but officials still plan to pay for weak sector of real estate for such most of it using tax revenue from 10 an important project is a big risk, office skyscrapers, many of which especially when there’s another would be built by the real estate gi- type of real estate New York has ant Vornado, whose stock recently been sorely lacking in for years that hit a pandemic-era low over con- could go up around Penn Station cerns that Manhattan’s big re- instead: residential buildings.

The recovery of the city’s residenturn-to-office moment may never

Penn Station” is probably not most New Yorkers’ first choice for where they’d like to live. But as anyone who has looked for an apartment in the past few months could tell you, it is pretty easy to expand where you’re willing to live when the current inventory is so low.

Conversion drive City and state officials are already

seeing what they can do to incentivize office owners to convert properties into residential space, as New York has a much greater need for more apartments than more cubicles. Adding 20 million square feet of new homes around Penn Station rather than 20 million square feet of new office and retail space would help solve both of these problems. ■

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IN THE 19TH CENTURY the first fissures emerged in the old-guard conventions of the New York legal industry.

Katherine Stoneman and George Boyer Vashon broke barriers when they became the first woman and the first Black person, respectively, to be admitted to the New York bar. Since then, the state’s legal industry has diversified year after year, growing to look more and more like the city it serves.

It is only fitting that a city with such a fabulously diverse population—58.7% people of color, 6.9% people with disabilities, 5.1% members of the LGBTQ community and millions of immigrants— should be represented by talented lawyers of equal variety. Indeed, the heterogeneity of New York’s legal industry goes a long way toward ensuring that residents of all stripes can find legal advocates and defenders sensitive to their unique backgrounds and needs.

With this in mind, Crain’s New York Business selected 80 Notable Diverse Leaders in Law. These individuals excel in their practice at New York’s leading law firms across a range of specialties.

They stand out for their counseling and the nature of their pro bono work. They likewise demonstrate a commitment to community service, philanthropy, professional mentorship, and diversity, equity and inclusion initiatives.

As diverse professionals in a traditionally conservative industry, they are forging a path for others—women, minorities and members of other underrepresented groups—to travel.

To qualify for the list, the honorees had to be nominated by their colleagues and based in New York City or nearby counties. They had to self-identify as representing diversity in the workplace—including women, people with disabilities, African Americans, Latinos, Asians and other underrepresented groups.

The nominees had to be serving in a senior role at a law firm with a staff of at least 10 individuals.

Each was required to be a practicing attorney at a law firm with at least 10 years of experience. In addition, the nominees had to be role models or mentors or promoters of inclusive practices in the workplace. They had to have had an impact on the types of cases they handled, their clients and their pro bono work. The nominees had be involved in either community or philanthropic activities and diversity and inclusion initiatives.

Read on to learn how these honorees use their skills daily to elevate the legal profession.

ROBIN ADELSTEIN Global head of antitrust and competition | Norton Rose Fulbright

At Norton Rose Fulbright, Robin Adelstein develops global strategies and leads a team of nearly 200 lawyers in the U.S., South Africa, Australia and Canada, among other countries. As the firm’s global head of antitrust and competition practice and U.S. co-head of its commercial litigation practice, Adelstein is committed to positively positioning clients and ensuring their fair treatment in court. She has been featured on Global Competition Review’s 2021 Women in Antitrust list and Crain’s Notable Women in Law list this year and in 2019. Adelstein frequently speaks at events hosted by the American Bar Association’s Antitrust Law Section, the American Conference Institute, and the Program on Corporate Compliance and Enforcement at the New York University School of Law.

MALA AHUJA HARKER Partner and management committee member | Friedman Kaplan Seiler & Adelman

Mala Ahuja Harker oversees Friedman Kaplan Seiler & Adelman’s business development functions and its diversity and inclusion efforts. As a partner and management committee member at the firm, Ahuja Harker focuses on complex financial frauds and public corruption. She has represented the founder of WeWork, a major pharmaceutical manufacturer and many clients in various regulatory investigations. Ahuja Harker helped lead her firm through pandemic-related challenges.

She was recognized in the 2021 and 2022 editions of Chambers USA and the Legal 500 for her defense work. Ahuja Harker helps economically disadvantaged communities as a member of the board of trustees of Volunteer Lawyers for Justice.

CARMITA ALONSO Partner | Fragomen, Del Rey, Bernsen & Loewy

Carmita Alonso represents a wide range of clients as a partner at Fragomen, Del Rey, Bernsen & Loewy, from global financial services companies and technology organizations to small and medium corporate clients and individuals involved in business-critical immigration issues. Alonso is charged with making strategic decisions regarding immigration programs, risk management and compliance. As co-chair of her firm’s global diversity, equity and inclusion committee, she guides efforts to prioritize diversity in recruitment, education and career development efforts. Alonso has supported pro bono efforts aimed at helping underrepresented immigrants of color. She was on the board of the City Bar Fund for six years.

MERIAM AL-RASHID Partner | Eversheds Sutherland

As partner, global co-chair of international arbitration and co-head of the Latin America practice at Eversheds Sutherland, Meriam Al-Rashid guides international commercial and investment disputes. With a focus on public international law, Al-Rashid has worked with teams across seven countries since the pandemic and recently created a charter for a new ministry to document war crimes in Ukraine. She investigated, analyzed and documented human rights atrocities and genocide in Myanmar, leading to a recommendation to the U.N. Human Rights Council that would establish an independent mechanism to collect, consolidate and preserve evidence of international crimes. Al-Rashid co-chairs her firm’s racial justice steering committee. She is a founder and board member of the Arab Legal Forum. In addition, Al-Rashid is involved with Women in International Law, among similar organizations.

JUDITH ARCHER Co-partner-in-charge | Norton Rose Fulbright

Implementing policy changes, integrating new lawyers, coordinating events, supporting staff—Judith Archer has a lot on her plate as co-partner-in-charge at Norton Rose Fulbright. Archer oversees the firm’s operations and policies as a member of the management committee; she helped develop a flexible work program as a member of the diversity and inclusion committee. Archer worked on a proceeding to recover hundreds of millions of dollars related to the Bernie Madoff fraud. She was on her firm’s attorney evaluation committee for nine years, overseeing reviews for non-partner attorneys. Archer previously advised associates as the mentor leader in the firm’s New York office. She chairs the Women in the Legal Profession Committee of the New York City Bar Association.

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JUAN ARTEAGA

SARAH ASHFAQ

LANDIS BEST

MAYAN BOUSKILA

SETH BRYANT

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Partner Crowell & Moring

Partner Goodwin

Partner Cahill Gordon & Reindel

Partner Helbraun & Levey

Managing partner Bryant Rabbino

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Juan Arteaga represents Fortune 500 companies and senior executives in civil and criminal antitrust investigations and commercial litigation. As a partner at Crowell & Moring, Arteaga has worked with Samsung, Mozilla, CSX Transportation and Blue Cross Blue Shield, among other high-profile clients. He co-chairs his firm’s New York antitrust practice and its diversity council, which develops and implements training and metrics related to the recruitment and retention of diverse talent. In addition, Arteaga is involved in pro bono efforts for victims of domestic violence, senior citizens, undocumented immigrants and indigent criminal defendants.

He has received a Chambers USA ranking as an antitrust practitioner, and he has been recognized by Law360 and the New York Law Journal, among other publications.

Focusing on the biotechnology and pharmaceutical industries, Sarah Ashfaq provides strategic advice to a wide range of clients, management teams and boards. As a partner at Goodwin, Ashfaq represents publicly traded biotechnology companies in Securities and Exchange Commission compliance and corporate governance matters and represents investment banks in corporate, securities law and financing transactions. Ashfaq, who has counseled companies such as Deciphera Pharmaceuticals, Entrada Therapeutics and Nuvalent, provides business-related pro bono services through her firm’s initiatives in support of communities facing discrimination. These include Goodwin’s Neighborhood Business Initiative and Project Citizenship. Ashfaq is a member and a previous board member of the Muslim Bar Association of New York.

At Cahill Gordon & Reindel, Landis Best represents global corporations, multinational financial institutions and media companies.

Best’s wideranging work as a partner involves government investigations, insurance disputes, economic sanctions, intellectual property matters and appellate work. She is a member of her firm’s executive committee, and she chairs Cahill’s Women’s Initiatives Committee, overseeing a program that recruits experts to deliver training and workshops. Best previously worked on the firm’s diversity, equity and inclusion committee and co-chaired its associate liaison committee. She has been among Benchmark Litigation’s Top 250 Women in Litigation for eight consecutive years.

As a partner at Helbraun & Levey and chair of the firm’s real estate group, Mayan Bouskila leads a team in providing legal counsel to restaurants, hospitality groups, bars and developers nationwide.

Throughout the pandemic, Bouskila has offered legal support to community businesses, including supporting business owners in renewing and renegotiating commercial leases. She previously chaired the firm’s diversity, equity and inclusion committee; she now mentors female colleagues through individualized coaching. Bouskila was recently a sponsor of the Cherry Bombe Jubilee, a networking conference for female entrepreneurs in the food industry. She was selected as a 2021 Rising Star by Super Lawyers.

Managing partner Seth Bryant is responsible for Bryant Rabbino’s operations and administration.

Bryant places a legal focus on minority- and women-owned business enterprise matters, and he was involved in a coalition that advocated for changes to MWBE laws in New York in 2010 and 2020. Bryant is a founding member of the Council of Urban Professionals, a nonprofit focused on diversity and equity, and he previously chaired a diversity-related committee of the New York City Bar Association. Bryant was elected a trustee of the Citizens Budget Commission. He formerly was on the board of directors of the National Association of Minority & Women Owned Law Firms.

E c m a

NEARLY 50,000 LAW FIRMS EXISTED IN THE U.S. IN 2021.

—LEGAL READER

ROBIN COHEN

DAVID CRICHLOW

GABRIEL YOMI DABIRI

LISA E. DAVIS

MYLAN L. DENERSTEIN

Chair Cohen Ziffer Frenchman & McKenna

Partner Katten Muchin Rosenman

Office managing partner Polsinelli

Partner Frankfurt Kurnit

Partner Gibson, Dunn & Crutcher

At the insurance recovery litigation boutique Cohen Ziffer Frenchman & McKenna, Robin Cohen is involved in all aspects of the firm’s operations. She represents policyholders in business interruption cases. Her clients have included Spirit Airlines, Pfizer and Verizon.

Cohen, active in recruiting and retaining diverse lawyers, has written articles for publications, including Barron’s, and lectured on diversity at universities nationwide. She was on the Insurance Coverage Law Center’s editorial advisory board. When she was a board member for the Legal Help Center, Cohen aided underprivileged women in the Philadelphia region.

David Crichlow works on complex commercial disputes, representing American and European banks, major oil and industrial companies, private-equity firms and large pension funds.

As a partner and national chair of the commercial litigation practice at Katten Muchin Rosenman, he oversees more than 40 attorneys in the U.S. and England. Crichlow, who mentors diverse young lawyers at Katten and elsewhere, has led trial counsel on commercial, class-action and bankruptcy litigation. He is on his firm’s board of directors and executive committee. Crichlow was named to the New York Law Journal’s list of distinguished leaders of 2020. He helps lead a program in the Newark, New Jersey, area that provides social and academic support to underserved male high school students.

At Polsinelli, Gabriel Yomi Dabiri advises clients on buy-and-hold credit strategies and syndicated finance transactions.

Dabiri leads the firm’s private credit and cross-border finance practice while he mentors diverse attorneys and works to ensure inclusion in the firm’s hiring, retention and promotion. The office managing partner sits on the board of the Black BigLaw Pipeline, a nonprofit composed of senior Black attorneys, and has held leadership positions as a volunteer for the American Heart Association. Dabiri is on the board and on the finance committee of the Women First International Fund, which provides microfinancing to grassroots projects led by women.

​​ Lisa E. Davis boasts more than three decades of experience representing businesses and celebrities spanning film, television, publishing, music, theater and sports.

Davis is a partner in the entertainment group at Frankfurt Kurnit, a member of the firm’s policy committee and co-chair of its diversity committee. She recently helped create a hiring practices working group and organized anti-racism and anti-harassment training. In addition, she oversees the firm’s attorney sponsorship and mentorship programs. Davis, whose clients have included Black Theater United, has received the Woman of Power Award from the National Urban League and has been featured in Super Lawyers Magazine.

At Gibson, Dunn & Crutcher, Mylan L. Denerstein leads criminal and civil litigation and internal investigations. The partner and co-partner in charge of the firm’s New York office also co-chairs the public policy practice group.

In addition, Denerstein is global chair of the diversity committee, through which she has led the firm’s support for the Equal Justice Initiative and the NAACP Legal Defense and Educational Fund.

In 2021 she was one of Benchmark Litigation’s Top 250 Women in Litigation. Denerstein is a member of the Women’s White Collar Defense Association, and she sits on the boards of the Legal Aid Society and the American Red Cross of Greater New York.

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a c L w r h w I w t d a C w d s B s

ESTELA DÍAZ

KIM DOHYUN

NICOLE FANJUL

MUHAMMAD FARIDI

JULIE FINK

Partner Akin Gump Strauss Hauer & Feld

Partner Skadden, Arps, Slate, Meagher & Flom

Partner Latham & Watkins

Partner Patterson Belknap Webb & Tyler

Managing partner Kaplan Hecker & Fink

At Latham & Watkins, Nicole Fanjul is a partner and codeputy office managing partner for the firm’s New York office.

Fanjul oversees strategic planning for practice growth and development, large acquisition financings, lateral partner hiring, associate recruitment and retention, and community engagement. She has lead anti-racism and allyship discussions and helped establish a diversity, equity and inclusion working group to formalize connections among various affinity groups and committees. Fanjul’s pro bono practice includes advising on immigration matters and helping immigrant victims of domestic violence obtain protections. She is a board member at the Acceleration Project, a nonprofit that assists small and minority-owned businesses. In addition, Fanjul is an alumni executive board member of Rye Country Day School.

Muhammad Faridi is a litigator of complex commercial matters involving torts and breaches of contracts. As a partner at Patterson Belknap Webb & Tyler, he has represented commercial real estate, software, pharmaceutical and nonprofit organizations. Faridi, who has also represented death-row inmates, refugees and runaway homeless children, focuses his pro bono work on assisting underrepresented communities in New York and the nation. He is co-chair of Patterson Attorneys of Color, a firm resource group that helps attorneys of color grow and develop their skills. Faridi is on the board of directors of the TEAK Fellowship and of the National Center for Law and Economic Justice.

At Kaplan Hecker & Fink, Julie Fink leads a commercial and public-interest litigation practice and oversees the firm’s operations.

Under her leadership, the firm has pioneered innovative recruitment methods to attract diverse talent, resulting in the selection of summer associate classes composed entirely of female individuals and individuals who are either people of color or LGBTQ+ or both for the past two summers. In addition, the firm has filed a lawsuit challenging Florida’s “Don’t Say Gay” law.

The managing partner is a frequent speaker on civil rights issues and pro bono work. Fink led an independent investigation into gender equity issues in the NCAA. She is on the board of New York Lawyers for the Public Interest. Fink was previously the audit chair at Gay Men’s Health Crisis.

Estela Díaz provides guidance to companies regarding sensitive matters in criminal, regulatory and internal investigations. As a partner at Akin Gump Strauss Hauer & Feld, she has represented Morgan Stanley, Papa John’s and Starbucks, among other high-profile clients. Díaz chairs the firm’s Latinx firmwide resource group, which focuses on recruiting and retaining Latinx lawyers. She led her firm’s pro bono partnership with the Bronx Defenders Immigrant Family Unity Project, which provided representation to immigrants facing deportation. Díaz was selected as a fellow at the Leadership Council on Legal Diversity, where she was on the program development committee. She sits on the board of directors of Bronx Defenders, a legal services nonprofit.

Kim Dohyun, a partner at Skadden, Arps, Slate, Meagher & Flom, advises public and private companies on corporate governance, acquisitions and dispositions, investments and private equity. Having represented clients such as BuzzFeed and NCR Corporation, she is a lead attorney on Elon Musk’s pending $44 billion acquisition of Twitter. Dohyun serves as a partner liaison for her firm’s global Asian American and Pacific Islander affinity network and provides pro bono services to nonprofits, such as the DreamYard Project, which helps Bronx youth access opportunity through the arts.

She is a member of the Partnership for New York City’s David Rockefeller Fellows program, through which privatesector executives build civic leadership skills.

We congratulate all of the distinguished lawyers recognized by Crain’s New York Business as Diverse Leaders in Law, especially our partner Juan A. Arteaga.

Your dedication to clients, commitment to the community, and achievements in advancing diversity and inclusion leads the way for generations of lawyers to come.

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crowell.com ©2022 Crowell & Moring LLP | Attorney Advertising

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DARRELL GAY

RACHEL GOLDMAN

Partner ArentFox Schiff

Partner Bracewell

Darrell Gay is an expert on employment-related issues, including hiring and discharge, discrimination matters, labor relations, internal investigations, workplace training, privacy and international labor. The partner at ArentFox Schiff is the chief negotiator for his clients during collective bargaining sessions.

Gay served as a member of the New York governor’s task force on sexual harassment, and he was selected as a fellow in the College of Labor and Employment Lawyers. He was a commissioner with the New York State Civil Service Commission. Gay is a founding board member of the National Employment Law Council and the Metropolitan Black Bar Association.

Rachel Goldman is a litigation partner in Bracewell’s New York office and co-chair of its environmental, social and governance practice and pro bono committee.

Focusing on the energy, construction, infrastructure and finance sectors, Goldman is involved in climate change, social responsibility and social governance, among other issues.

She has represented wind farm developers and solar power energy companies domestically and abroad, and she has advised large lenders regarding litigation and arbitration risks involving borrowers. As a member of the firm’s associate committee, Goldman provides mentorship and develops policies related to associate development and diversity, equity and inclusion efforts. In addition, she coordinates the firm’s partnership with the nonprofit Her Justice. Goldman has taught at Columbia Law School.

ELIZABETH GONZALEZSUSSMAN Partner Olshan Frome Wolosky

At Olshan Frome Wolosky, Elizabeth Gonzalez-Sussman is a partner in the shareholder activist and equity investment practice as well as the corporatesecurities law group.

GonzalezSussman is on the women’s committee and the diversity committee, organizing networking groups that connect women in finance and law. In addition, she is head of environmental, social and governance activist investing.

She speaks and writes on ESG issues; the Harvard Law School Forum on Corporate Governance, a high-profile online blog, has published her work. Gonzalez-Sussman has been acknowledged by Chambers USA and the Legal 500. She is on the board of directors of the Columbia Law School Association, where she assists with alumni initiatives and fundraising.

KEISHA-ANN GRAY

SANDRA HAUSER

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Partner Proskauer

Partner and head of U.S. commercial litigation Dentons

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At Prokauer, Keisha-Ann Gray advises companies, brands and individuals on various issues.

Gray, a trial lawyer who has secured victories in federal and state courts for organizations facing “bet the company” and reputational risk claims, connects with diverse groups and advocates for clients. She handles sensitive litigation and workplace investigations involving allegations of sexual harassment, discrimination and financial misconduct. The Proskauer partner speaks and writes about trial practice and employment matters and mentors junior female lawyers and lawyers of color. Gray co-chairs the Federal Bar Council’s employment litigation committee. Recently, she was appointed to the New York Mayor’s Advisory Committee on the Judiciary.

Sandra Hauser leads the U.S. commercial litigation practice at Dentons, serving on the global litigation and dispute resolution leadership team. Hauser regularly defends companies in class-action and complex commercial cases in trial and appellate courts. The Dentons partner is a member of the pro bono committee. Hauser has helped develop the firm’s business practices and professional development and diversity initiatives. Through Dentons’ Preparing for Rain program, which she helps to lead, she mentors young female lawyers on business development matters. Hasuer is involved with the New York Says Thank You Foundation, a nonprofit that supports communities recovering from disaster. ]

THE NUMBER OF LAWYERS IN THE U.S. INCREASED BY 76% IN THE 1970S, THE MOST OF ANY RECENT DECADE. —AMERICAN BAR ASSOCIATION

CAROLINE HELLER

MARCELLE HENRY

ELLEN HOLLOMAN

MEEGAN HOLLYWOOD

BRIAN HSU

Shareholder Greenberg Traurig

Partner Pitta

Partner Cadwalader, Wickersham & Taft

Partner Robins Kaplan

Partner Goldstein Hall

At Greenberg Traurig, Caroline Heller focuses on complex commercial litigation. The litigation shareholder has led the firm’s efforts to train attorneys to file humanitarian parole applications and temporary protected status applications. As chair of the global pro bono program, Heller oversees pro bono coordinators and mentors associates. She is on the criminal justice and projects committees of the Law Firm Anti-racism Alliance and the pro bono committee of the Advocates for Children board.

Heller is president of the Holly Skolnick Fellowship Foundation, where she leads selected fellows in work related to racial and social justice. In addition, she is on the board of the Fund for Modern Courts.

Marcelle Henry, partner and chair of the ERISA/employee benefits group at Pitta, is charged with all aspects of work related to employee benefit plans.

Henry ensures that plans are compliant with applicable law and manages more than 35 plans. In addition, she mentors female attorneys to navigate client issues and develop professional pathways. Henry was appointed to the U.S. Department of Labor’s advisory council on employee welfare and pension benefit plans. For the American Bar Association’s Labor and Employment Law Employee Benefits Committee, she is a liaison to the Diversity in the Legal Profession Committee.

At Cadwalader, Wickersham & Taft, Ellen Holloman is a partner in the global litigation group, a partner sponsor for the Black and Latino Association, and a member of the global diversity committee. She works with large companies, banks, and broker-dealers, handling complex commercial litigation, internal investigations, corporate governance issues and crisis management. Holloman, whose pro bono work focuses on veterans, immigrants and incarcerated individuals, provides career advice to junior and midlevel attorneys. She sits on the board of New York Lawyers for the Public Interest.

Holloman, who has been named one of Lawdragon’s 500 Leading Lawyers in America, is on several New York City Bar Association committees.

As a partner at Robins Kaplan and a member of its antitrust and trade regulation group, Meegan Hollywood prosecutes actions involving price fixing, unlawful monopolization and anticompetitive practices. She leads a team serving on the plaintiffs’ steering committee concerning advertising antitrust litigation, and she is sole counsel for a case involving two large freight railroads charged with price fixing. Hollywood, who is the New York office’s pro bono chair, is also involved with the gender inclusion working group of the firm’s diversity committee. Her personal pro bono practice includes working with the Kids in Need of Defense organization and the Transgender Legal Defense & Education Fund.

As a partner at Goldstein Hall, Brian Hsu focuses on affordable housing development, banking, cooperative and condominium law, and real estate finance.

Hsu frequently presents on housing issues, including affordable housing policy matters, and he has led workshops for the New York Housing Conference and the Local Initiatives Support Corporation, among others.

Recently, he helped close Habitat Net Zero, a project for Habitat for Humanity New York City and Westchester that designs energy-efficient homes.

He leads Goldstein Hall’s developer program, which aims to reduce barriers for underrepresented contractors and developers in the affordable housing development industry.

Hsu is on the board of directors of the Habitat for Humanity NYC Fund.

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A R d c

d m i m d v c T t f t f o a v Y

l

ANNIE HUANG

SHAIMAA HUSSEIN

CORRINE IRISH

RANDALL JACKSON

TALEAH JENNINGS

Partner Robins Kaplan

Partner Willkie Farr & Gallagher

Partner Squire Patton Boggs

Partner Willkie Farr & Gallagher

Partner Schulte Roth & Zabel

As deputy managing partner at Robins Kaplan, Annie Huang develops solutions to help clients achieve business goals and navigate complex legal problems.

Huang represents companies in intellectual property and business disputes and has experience in a multitude of industries, including consumer electronics, medical devices and variable data printing. She has been on various trial teams in district courts and the International Trade Commission, managing teams at all stages of litigation from pre-suit and case initiation to mediation and trial. Huang focuses her pro bono practice on individuals seeking political asylum. She has been a volunteer attorney for the New York Legal Assistance Group.

Shaimaa Hussein represents multinational corporations and financial institutions in complex commercial litigation arising out of mergers and acquisitions, corporatecontrol transactions and government investigations.

As a partner at Willkie Farr & Gallagher and co-chair of its mergers-andacquisitions litigation practice, Hussein has represented Men’s Wearhouse and Xerox Corporation, among other high-profile clients. She is committed to hiring and retaining diverse candidates, mentoring associates and organizing initiatives to advance diverse attorneys and staff. As a member of the firm’s pro bono committee, Hussein supervises work involving immigration and housing. She is the recipient of the Federal Bar Council’s Thurgood Marshall Award for exceptional pro bono service.

Corrine Irish directs Squire Patton Boggs’ pro bono practice in the U.S., Asia and several of the firm’s European offices.

Irish, experienced in commercial and intellectual property disputes and issues of constitutional law, won a settlement related to violations of the First and Fourth amendments. In addition, she obtained a pardon for one of the four U.S. sailors, dubbed the Norfolk Four, who were wrongfully charged with rape and murder. Through the firm’s public service initiative, the law partner has handled pro bono matters involving indigent people with limited access to legal services, mentored diverse associates regarding professional development, and advised law students through the Squire Patton Boggs Foundation. Irish has been recognized as a rising star in New York by Super Lawyers.

Randall Jackson co-chairs Willkie Farr & Gallagher’s white-collar defense and compliance, investigations and enforcement practice groups.

As a partner in the firm’s litigation department, Jackson focuses on government and internal investigations, civil litigation and regulatory compliance. In addition, he is on the firm’s business, pro bono and recruiting committees, and he is a partner mentor for diverse associates. Jackson previously was assistant U.S. attorney for the Southern District of New York. He made Savoy magazine’s list of the Most Influential Black Lawyers of 2022. Jackpon sits on the board of the New York Legal Assistant Group, a legal services organization that advocates economic and racial justice.

Taleah Jennings manages all phases of litigation, developing strategies and overseeing the teams of lawyers that represent her clients. As a partner at Schulte Roth & Zabel, Jennings chairs the firm’s diversity, equity and inclusion committee, and she led the formation of the firm’s Task Force for Racial Justice. Jennings was awarded the Sanctuary for Families’ Excellence in Pro Bono Advocacy Award for her work in assisting victims of domestic violence and sex trafficking, and she received the Burton Award for Distinguished Legal Writing.

Savoy Magazine named her to its Most Influential Black Lawyers list. Jennings is on the advisory board of Legal Information for Families Today, a pro bono legal adviser for underserved families, and on the board of directors for Sanctuary for Families.

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M. JANINE JJINGO

GLENN JONES

ATIF KHAWAJA

ALVIN LEE

EDWARD LEE

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Partner Skadden, Arps, Slate, Meagher & Flom

Partner Abrams Fensterman

Partner Kirkland & Ellis

Partner King & Spalding

Partner Kirkland & Ellis

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Whether at the federal, state or local level, Glenn Jones represents individuals and companies in various criminal and civil matters as a partner at Abrams Fensterman.

Jones chairs the health care fraud and white-collar criminal defense practice group at the firm. His clients have included a nursing home and the board of directors of a drug treatment center. Jones previously worked in the New York state attorney general office, where he was was special assistant attorney general in the Medicaid Fraud Control Unit.

He was a trial attorney with the U.S. Commodity Futures Trading Commission. Jones, president of the board of directors of the Brooklyn Urban Garden Charter School, has taught environmental law .

Atif Khawaja offers strategic advice and litigation services for clients in business disputes as a partner at Kirkland & Ellis, where he has spent his entire legal career.

Khawaja’s accomplishments include securing asylum for survivors of domestic and gang violence and resolving antitrust and patent infringement claims. He co-chairs the firm’s diversity and inclusion and associate review committees, developing attorney affinity groups and overseeing pro bono efforts.

Khawaja is committed to developing a diverse trial bar and prioritizing diverse recruitment. He focuses his pro bono practice on underrepresented populations, victims of domestic violence, disabled children, and individuals with limited access to medical services. Khawaja volunteers as a director of the Legal Aid Society.

At King & Spalding, Alvin Lee specializes in complex commercial litigation, mass torts and class-action defense.

Working with clients in the financial services, energy and technology sectors, the King & Spalding partner has been involved in litigation regarding renewable energy. These days he represents JPMorgan Chase in a series of lawsuits related to the February 2021 winter storm in Texas. Lee has served in leadership roles within the firm and throughout the legal industry regarding diversity and inclusion, leading initiatives surrounding antiAsian hate crimes and combating violence against transgender women of color. He previously was on the board of directors of the National LGBTQ+ Bar Association. Lee has worked on transgender rights materials for the American Civil Liberties Union.

Edward Lee has built a career advising public companies and private-equity firms on domestic and cross-border mergers and acquisitions.

The Kirkland & Ellis partner counsels companies on securities, corporate governance and crisis management, helping develop the firm’s mergers-andacquisitions practice in New York and globally. Motivated by his commitment to diversity and inclusion initiatives, Lee has pushed to organize firmwide discussions and panels on related topics while he collaborates with leading Asian American and Pacific Islander organizations. He was a 2017-18 David Rockefeller Fellow. Lee is on the boards of the Asian American Bar Association and the Korean American Community Foundation.

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At Skadden, Arps, Slate, Meagher & Flom, M. Janine Jjingo represents investment and commercial banks, privateequity funds, financial institution investors, and corporations in global financings, acquisition financings and asset-backed loans. The Sladden, Arps partner has respresented Adtalem Global Education, BlackRock and Fintech Bottomline Technologies, among other high-profile clients. Jjingo is involved in her firm’s promotion efforts on law school campuses, and she frequently speaks at Columbia Law School and the University of Pennsylvania. She is on her law firm’s Global Women’s Initiatives Committee, which supports female attorneys. Jjingo was named one of Savoy magazine’s Most Influential Black Lawyers in 2022.

PHILADELPHIA-BASED RAWLE & HENDERSON, FOUNDED IN 1783, CLAIMS TO BE THE OLDEST LAW FIRM IN THE U.S. —RAWLE & HENDERSON

JESSICA LEE

KELLIE LERNER

ERIKA LEVIN

Partner Loeb & Loeb

Partner and co-chair Robins Kaplan

Partner Fox Rothschild

As a partner and chair of privacy, security and data innovations at Loeb & Loeb, Jessica Lee leads a team of more than 40 lawyers who support companies, brands and media organizations in their efforts to use data to market and monetize a range of digital products. Advising on technologies. including artificial intelligence, virtual reality and facial recognition, Lee worked with Northwell Health on a deal with Aegis Ventures to develop and commercialize AI for health care. She co-chairs Loeb & Loeb’s affinity group for attorneys of color and ethnic diversity, sits on the pro bono committee of her firm’s New York office, and leads an advisory group of Loeb lawyers for the Bail Fund Project.

Robins Kaplan’s Kellie Lerner focuses on high-stakes disputes and counsels organizations in the pharmaceutical, alternative energy and entertainment industries. The partner and co-chair has initiated antitrust class-action lawsuits and recovered billions of dollars for victims of anti-competitive conduct. As chair of a group of women focused on antitrust work, Lerner advocates for women and other diverse members of the legal industry, leading events and programs that foster mentorship and inclusive dialogue. She is chair of diversity for the Antitrust Section of the New York State Bar Association and co-chair of the National Association of Women Lawyers’ litigation affinity group.

As a partner at Fox Rothschild, Erika Levin represents clients in complex international commercial disputes, serves as an international arbitrator and provides transactional support. In her pro bono work, Levin represents people who require additional support in understanding and navigating American law. Levin, co-chair of her firm’s Latin America practice and head of the diversity initiative for the New York office, establishes and facilitates formal connections between minority attorneys and clients. She was named to Latinvex’s list of Latin America’s Top 100 Female Lawyers in 2021. Levin is a fellow at the Chartered Institute of Arbitrators.

LORI MARKSESTERMAN Partner Olshan Frome Wolosky

Lori Marks-Esterman chairs the litigation practice group at Olshan Frome Wolosky. As the firm’s youngest person and only woman to lead a practice group, MarksEsterman has directed the firm’s litigation practice toward subtle and high-stakes cases in New York’s Southern District and other influential jurisdictions. The partner is involved with her firm’s committees for women and for diversity and inclusion; in addition, she works with larger organizations for women in finance and law. MarksEsterman advances legislation promoting the involvement of women and minorities in business while mentoring women attorneys on executive leadership responsibilities, client obligations and family demands.

HAIMAVATHI MARLIER Partner Morrison Foerster

Haimavathi Marlier is global co-chair of Morrison Foerster’s securities litigation, enforcement and white-collar defense group.

Serving on its board of directors, diversity strategy committee and New York hiring committee, Marlier has helped develop a comprehensive training program for associates with a focus on thought leadership and the inclusion of first-generation law students from non-elite schools. Her pro bono practice focuses on increasing marginalized communities’ access to nature and public lands. In addition, Marlier mentors aspiring lawyers of color. The law firm partner, who served on the Securities and Exchange Commission’s Division of Enforcement, has received accolades from the Legal 500. Marlier is on the board of trustees of the SEC Historical Society.

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B C p a r b h C s a F P l M m T

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LINDA MARTIN

WALFRIDO MARTINEZ

BRIAN MCGRATH

JOSEPH MILIZIO

Partner Freshfields

Managing partner Hunton Andrews Kurth

Partner Hinshaw & Culbertson

Managing partner Vishnick McGovern Milizio

MORGAN F. MOUCHETTE

At Freshfields, partner Linda Martin is co-head of its U.S. commercial litigation practice and co-head of its global class and collective actions group.

Martin, a leader in diversity and inclusion, has been recognized for her work by Crain’s, Benchmark Litigation and Chambers, among others. In her pro bono work, Martin defeated a motion in 2021 to dismiss civil rights litigation filed by a client brutalized during an arrest. She hosts periodic “Zoomside Chats” with female partners to share professional guidance, and she has participated in Freshfields’ Reverse Mentoring Program, which pairs the firm’s leaders with diverse associates.

Martin has been a board member of the Children’s Tumor Foundation since 2006.

Since Walfrido Martinez became a managing partner at Hunton Andrews Kurth in 2006—one of the youngest leaders of the global law firm and the rare Hispanic American in the role—the firm has engaged 100% of its lawyers in diversity and inclusion initiatives and projects and in its pro bono services. As a previous chair of the Leadership Council on Legal Diversity, Martinez developed a diverse team of office, practice and committee leaders, engaged proactively with diverse attorneys and supported programs that facilitate productive discussion. Martinez, a specialist in complex business litigation and white-collar criminal defense, has been recognized by the National Law Journal. He received the U.S. Coast Guard’s Meritorious Public Service Award in 2017.

Hinshaw & Culbertson partner Brian McGrath co-chairs the firm’s consumer financial services practice group.

McGrath represents and advises major companies nationwide, manages a high-volume litigation practice and has led large scale attorneyrecruitment efforts. As a recognized thought leader on state and federal financial services laws, he is a legal resource for the New York Mortgage Bankers Association, where is on the mortgage servicing committee. McGrath, who has been consistently involved with LGBTQ issues, has held leadership roles for the New York City Bar LGBTQ Rights Committee, and he is a member of the Human Rights Campaign Federal Club Council. McGrath was a 2018-19 fellow at the Leadership Council on Legal Diversity. He is on the board of the Development Authority of the North Country, a public benefit corporation.

Joseph Milizio oversees all aspects of operations and growth at Vishnick McGovern Milizio, leading the firm’s practices in LGBTQ representation, business and transactional law, mergers and acquisitions and real estate.

The managing partner recently represented LGBTQ clients in connection with estate planning, health care discrimination and surrogacy.

In his community work, Milizio has collaborated with Northwell Health to run a yearlong LGBTQ Health & Life Planning webinar series and to establish an upcoming free medical-legal clinic for transgender people. In 2021 Milizio co-founded the Long Island chapter of the LGBT Chamber of Commerce and joined the national board of governors of the Human Rights Campaign.

Partner Blank Rome

Blank Rome partner Morgan F. Mouchette handles and settles high-net-worth financial, matrimonial and family matters. After representing a female Army veteran in a custody battle upon her return from the Iraq War, Mouchette received Blank Rome’s highest pro bono honor in 2015. She has been recognized by the New York Law Journal, Super Lawyers and the Women’s Bar Association of the State of New York. She co-chairs Blank Rome’s United Affinity Group and frequently lectures on mentorship and authenticity.

Mouchette, who is focused on increasing diversity in the legal community, holds a leadership position at Black BigLaw Pipeline, a mentorship group for Black attorneys.

Latham & Watkins celebrates our colleague Nicole Fanjul and all of this year’s Notable Diverse Leaders in Law. We are thrilled and proud to be a part of New York’s vibrant legal community.

LW.com

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TREY MULDROW

BONNIE NEUMAN

JESSE NEVAREZ

INOSI NYATTA

Partner Weil, Gotshal & Manges

Co-chair of the finance group Cadwalader, Wickersham & Taft

Partner Goodwin

Partner Sullivan & Cromwell

At Weil, Gotshal & Manges, Trey Muldrow advises corporations, sovereign wealth groups, private-equity sponsors and assent managers on complex and market-leading transactions.

Muldrow, a partner in the private-equity practice, has worked with the New York Yankees, Northleaf Capital and Siemens, among other major clients. He has been recognized by the Metropolitan Black Bar Association, the Council of Urban Professionals and Bloomberg Law. Muldrow is a leader in his firm’s Black Attorney Affinity Group and a participant in Jumpstart, a mentoring program for Black associates. Active in diversity recruiting, he helped revive the Black alumni program and launch a microsite to showcase Black partner talent to clients and law students.

Bonnie Neuman, a recognized leader in real estate finance law, has headed multiple headline transactions and leads a transatlantic team of more than 100 attorneys.

Neuman is a co-chair of the finance group, the head of the real estate finance practice and a member of the management committee at Cadwalader, Wickersham & Taft, where she has spent her entire legal career. Neuman’s pro bono work includes involvement with her firm’s Transgender Name Change Clinic and Immigration Clinic.

She is a committed leader on diversity and inclusion initiatives, including the firm’s sponsorship program and the CRE Finance Council Women’s Network, where she raises funds for Girls Inc., a nonprofit that focuses on female empowerment. Neuman was recognized in 2021 as one of the nation’s top commercial real estate attorneys by Connect CRE.

Goodwin partner Jesse Nevarez uses a client-centered approach to advise companies on capital markets, complex transactions, and mergers and acquisitions in the technology and life sciences sectors.

Nevarez, who provides counsel for matters throughout the corporate lifecycle, ensures equal opportunity in all aspects of his professional life. He accomplishes this through mentoring associates and law students, working with venture capitalists and incubators that invest in women- and minorityowned companies and serving as a Leadership Council on Legal Diversity fellow. Nevarez is active on Goodwin’s Black Anti-racism Task Force, a leader on the New York Council of its Committee on Racial and Ethnic Diversity, and a diversity, equity and inclusion co-chair for its tech business unit.

As co-head of Sullivan and Cromwell’s global project development and finance practice, Inosi Nyatta works on innovative financing techniques that provide infrastructure to developing regions.

Recently, she advised Belize on a restructuring project to support ocean conservation and represented Sempra and Sempra Infrastructure Partners in financing efforts to build capital and credit. As a member of her firm’s diversity and women’s initiative committees, Nyatta has co-founded and launched initiatives to promote female colleagues, cultivate an alumni network and provide career mentorship. The law partner delivered a virtual training session on financial models for energy products for government lawyers and officials in Nigeria, Kenya and Ethiopia through the Cyrus R. Vance Center for International Justice.

MARY POKOJNY O’REILLY

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Partner Meltzer, Lippe, Goldstein & Breitstone

As a co-chair of the trusts and estates practice group of Meltzer, Lippe, Goldstein & Breitstone, Mary Pokojny O’Reilly manages, counsels and mentors a team of 25 estateplanning attorneys across the country. O’Reilly, the first female equity partner at her firm, guides individuals and family businesses on preserving and protecting assets and minimizing taxes. Committed to mentorship, she advises dozens of young attorneys at the firm, emphasizing the path to success for other working parents.

O’Reilly participates in the American Bar Association and sits on the board of Our Lady Victory School. She has planned professional development events in concert with the Hofstra University School of law.

CADWALADER, WICKERSHAM & TAFT, FOUNDED IN 1792, BILLS ITSELF AS “THE OLDEST CONTINUING WALL STREET LAW PRACTICE IN THE UNITED STATES.” —CADWALADER, WICKERSHAM & TAFT]

KRISHNAN PADMANABHAN Partner Winston & Strawn

At Winston & Strawn, partner Krishnan Padmanabhan co-chairs the firm’s technology, media and telecom industry group.

With extensive experience in patent litigation, Padmanabhan promotes diversity, equity and inclusion efforts through his position on Winston’s executive committee and as the diversity committee liaison to the attorney assignment committee. He has been recognized for his work by the Legal 500, Super Lawyers and IAM Patent 1000. Outside of the firm, Padmanabhan sits on the board of governors of the University of California, Hastings College of Law as a mentor to diverse students. In addition, he is on the Edgemont Scholarship Council, which grants scholarships to students in need of financial aid.

CARMEN I. PAGAN

ALI PANJWANI

LUIS PENALVER

SHIVANI PODDAR

Partner Romer Debbas

Partner Pryor Cashman

Partner Cahill Gordon & Reindel

Partner Herrick, Feinstein

As head of Romer Debbas’ agency lending practice—a diverse and all-female department—partner Carmen I. Pagan helps clients navigate complex multifamily lending matters, including conventional loans, senior housing and student housing.

Pagan has spoken at global real estate forums and legal conferences, and she hosted the “Diversity and Inclusion in Institutional Real Estate” networking roundtable at the seventh annual Global Institutional Real Estate Investor Forum. Pagan, who is committed to diversity and inclusion in the workplace, is an active career mentor. She represents immigrants in pro bono cases regarding petitions to obtain legal permanent status and regularly counsels military veterans, senior citizens and minority business owners.

At Pryor Cashman, Ali Panjwani provides transactional advice to small- and mid-cap companies, investment banks and funds. As a co-chair and assigning partner of the firm’s corporate group, Panjwani shapes associates’ professional development, ensures corporate team engagement and mentors diverse associates. He led the initial public offering for the first minority-led special-purpose acquisition company to be listed on the Nasdaq and has represented Crown Electrokinetics, a smart-glass technology company that offers carbon emissions-reduction benefits. Panjwani is a member of his firm’s summer associate hiring committee, which supports diversity—a cause of importance to him as a firstgeneration American. Panjwani holds frequent informal mentoring conversations with young people and has hosted high school students at Pryor Cashman through the Elevate New York program.

Cahill Gordon & Reindel partner Luis Penalver represents leading global banks involved in leveraged buyouts across a wide range of industries.

Penalver sits on the firm’s executive committee and provides counsel on the long-term strategic direction and day-today management of the firm. In addition, he chairs Cahill’s diversity and inclusion committee, which he has served on since its inception, and supervises firmwide efforts in setting and achieving internal goals for diverse recruiting, retention, promotion and mentorship. Outside of work, Penalver, a longtime board member of the NAACP’s Legal Defense Fund, chairs its pension committee.

For more than a decade, Shivani Poddar has worked with clients in high-profile cases, including commercial, securities, real estate and employment disputes. The Herrick, Feinstein partner has represented the trustee of an energy company in a large leveraged buyout as well as Ample Hills Holdings, the iconic Brooklynbased ice-cream company, in Chapter 11 bankruptcy protection proceedings. Poddar, founder of the Diverse Working Attorneys’ Group and creator of the newsletter Diversity Matters, has launched programs aimed at increasing her firm’s efforts in recruiting and retaining diverse attorneys. She was recognized as a rising star by the New York Law Journal in 2020. Poddar is co-director of the litigation committee of the South Asian Bar Association in New York.

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A c c p

i t i m o a B c fi g t a m u a L D w e a

EDWARD PROKOP

DOROTHEA REGAL

Partner Jenner & Block

Founding and co-managing partner Hoguet Newman Regal & Kenney

As co-chair of the firm’s corporate department and cross-border transaction practice, Jenner & Block partner Edward Prokop counsels clients in domestic and international transactions, corporate governance, fiduciary, ethics and disclosure issues. Prokop co-led a team that represented Snyder’s-Lance in Campbell Soup Company’s multibillion-dollar acquisition of the snack manufacturer. He is an active member of Jenner & Block’s diversity and inclusion committee and co-chair of the firm’s multicultural affinity group. In addition, Prokop is on the New York office’s summer associate committee. He mentors law school fellows from underrepresented backgrounds and is himself a fellow with the Leadership Council on Legal Diversity. Prokop’s pro bono work focuses on prison education, renewable energy and public school equity.

Since co-founding the womenowned litigation boutique Hoguet Newman Regal & Kenney more than a quartercentury ago, Dorothea Regal has recovered hundreds of millions of dollars from insurers for various corporate policyholders. As a co-managing partner, she heads the firm’s insurance recovery group and has represented global companies in disputes that include product liability claims, insurance coverage, business interruption and employment discrimination. Regal, who mentors interns, associates and younger partners, is involved with the Women’s Leadership Circle of Brooklyn Law School, a program aimed at advancing women lawyers. She is the policyholder-side co-chair of the Business Interruption Insurance Subcommittee of the American Bar Association’s Insurance Coverage Litigation Committee.

ANN RICHARDSON KNOX Partner Mayer Brown

Ann Richardson Knox, who represents large domestic and international lenders in fund finance matters, led some of the first environmental, social and governance and green fund financings on the U.S. market.

Richardson Knox heads the firm’s global fund finance team and serves as a banking and finance partner at the New York office. She has supported women through the founding of the Women in Fund Finance initiative, which aims to increase the engagement, recognition and promotion of women leaders in alternative investment fund finance. At numerous events for the Fund Finance initiative and other financial organizations, Richardson Knox has given presentations and facilitated industry discussion, with special attention to addressing audiences of female lawyers.

NINA ROKET

ANJAN SAHNI

Co-administrative partner Olshan Frome Wolosky

Partner-in-charge, New York office WilmerHale

As leader of the commercial leasing practice at Olshan Frome Wolosky, Nina Roket closes leases, acquisitions and financings while she develops new businesses.

With her experience in real estate and business, Roket works with a diverse roster of clients, leading national and global financing platforms in office, retail and bio-manufacturing spaces. The founder and chair of the firm’s women’s committee mentors female lawyers; she also mentors in the Urban Land Institute Mentorship Program.

Olshan’s co-administrative partner is a member of WX New York Women Executives in Real Estate. Roket, committed to advancing principles of diversity and inclusion, heads the law firm’s hiring committee.

Anjan Sahni, partner-in-charge of WilmerHale’s New York office, advises individuals and institutions on high-stakes government investigations and litigation across various agencies and issues. Sahni has been lead counsel in a dozen federal criminal trials since 2005, including the prosecution of terrorism offenses and the prosecution of an attempted bombing of Times Square.

Sahni, committed to mentoring young lawyers and working with a diverse team, is on his firm’s management, diversity and compensation committees.

Outside the firm, Sahni provides legal support to the Sikh Coalition and offers pro bono work to assault victims and people involved in FBI terrorism investigations.

Congratulations to our partner Jessica Lee and all of our friends recognized in Crain’s New York Business’ 2022 Notable Diverse Leaders in Law feature.

We applaud your extraordinary professional achievements and commitment to serve as an advocate for diversity, equity and inclusion.

LOS ANGELES NEW YORK CHICAGO NASHVILLE

WASHINGTON, DC SAN FRANCISCO BEIJING HONG KONG

loeb.com

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TERRI SELIGMAN

UMAR SHEIKH

CYNTHIA SHOSS

DAWN SMALLS

RUTI SMITHLINE

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Partner Frankfurt Kurnit

Principal and chair Offit Kurman

Partner Eversheds Sutherland

Partner Jenner & Block

Partner Morrison Foerster

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At Frankfurt Kurnit, Terri Seligman is a partner and co-chair of advertising, marketing and public relations.

Seligman regularly practices before the National Advertising Division, representing companies in regulatory matters and advertising disputes. She helped create the racial justice task force and co-chairs it. The task force has been instrumental in facilitating discussions and learning opportunities around race, updating the firm’s policies, and formalizing racial justice tenets to guide hiring practices and workplace culture. Seligman, who also co-chairs the reproductive rights task force, creates opportunities for underrepresented groups in the legal field through drafting work-life balance and caregiver leave policies. She regularly provides pro bono counsel to city organizations.

Umar Sheikh’s work as principal and chair of Offit Kurman’s real estate law and business transactions practice concentrates on all aspects of real estate law, from financing and foreclosures to asset protection and estate planning.

Sheikh, who has experience with Islamic shariah-compliant finance, has represented clients on sustainable hospitality and energy storage, and he has litigated matters involving real estate and corporate interests in all levels of courts. He mentors younger attorneys of color, often speaks at local mosques about the importance of estate planning, and sits on the board of Muslims 4 Peace, a nonprofit that connects people from various backgrounds through interfaith dialogue. Sheikh heads the recruitment and retention subcommittee of Offit Kurman’s diversity committee.

At Eversheds Sutherland, partner Cynthia Shoss assists clients with insurance regulatory matters and corporate governance.

Shoss leads a team of advisers on a transaction to transform Columbian Mutual Life Insurance Company into a stock life insurance company. In addition, she is involved in negotiating the definitive merger agreement, policyholder disclosure documents and regulatory approvals. Shoss was the first woman and second lawyer in private practice to receive the Distinguished Service Award for Lifetime Services from the Association of Life Insurance Counsel. Recently, she finished serving the maximum term on her firm’s global board. Shoss is on the board of the Greenberg School of Risk Management at St. John’s University. She is the chair of the Economic Mobility Corporation board of directors.

Dawn Smalls works with clients from tier-one financial institutions to homeless New Yorkers and leads high-stakes matters. The Jenner & Block partner is a member of the firm’s management committee, which oversees the firm’s daily operations. Smalls worked in the Clinton and Obama administrations as assistant to the White House chief of staff and as the chief regulatory officer at the Department of Health and Human Services, respectively. She was a candidate in 2019 for New York City public advocate. Smalls mentors, advises and supports diverse candidates on the local, state and federal level. She is on the boards of the Roosevelt Institute and the Stone Barns Center for Food and Agriculture.

Ruti Smithline co-chairs Morrison Foerster’s investigations and white-collar defense group and the firm’s Latin American desk. The native Colombian and fluent Spanish speaker advises on matters of corruption, fraud and compliance in Latin America. Smithline, who has been recognized by the Legal 500 and by LatinVex, leads the firm’s Visiting International Attorney program and oversees more than 70 attorneys as head of the New York litigation department. She has been on the selection committee for the TotalLaw Prep program, which supports lawyers of Afrodescendant and indigenous Latin American backgrounds.

Smithline is a member of the Women’s White Collar Defense Association. She mentors junior lawyers and contributes to pro bono initiatives at the Cyrus R. Vance Center for International Justice.

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IN 1869 ARABELLA MANSFIELD BECAME THE FIRST FEMALE LAWYER IN THE U.S. (AFTER SUING THE IOWA STATE BAR TO SIT FOR ITS BAR EXAM).

—ONE LEGAL

ALISON STEIN

DUVOL THOMPSON

LATISHA THOMPSON

HECTOR TORRES

SERGIO URIAS

Partner Jenner & Block

Partner Holland & Knight

Partner Morrison Cohen

Partner Kasowitz Benson Torres

Partner Akin Gump Strauss Hauer & Feld

As a partner and co-chair of the content, media and entertainment practice at Jenner & Block, Alison Stein represents media companies, such as Nintendo and ViacomCBS, in high-profile intellectual property counseling, content moderation and litigation. She works on the firm’s associate management and evaluation committees and co-chairs the Media Law Resource Center’s Internet and Technology Law Committee.

Stein is on the board of directors of Volunteer Lawyers for the Arts and the Irving Fine Society. She has published articles about issues relating to women and the workplace, and she has worked on women’s and development issues in Haiti, Ghana, Tanzania and Uganda.

Stein’s pro bono practice includes reproductive rights and civil rights work.

Duvol Thompson has represented clients in litigation and business disputes spanning many industries, from financial services to multinational energy, media and entertainment.

The Holland & Knight partner has spent his entire career at the firm, where he co-chairs the New York office’s diversity committee. Thompson, named a 2019 Fellow of the Leadership Council on Legal Diversity, has worked to establish a welcoming workplace environment for attorneys of color. He is a board member for the Pipeline to Practice Foundation, an organization that advances diversity in the legal profession, and for Strategies for Youth, a nonprofit that seeks to improve interactions between young people and the police and reduce unnecessary and forceful arrests.

Morrison Cohen partner Latisha Thompson is chair of the firm’s business litigation. Thompson, who focuses on complex business disputes, real estate litigation and restructuring, has represented a large global auction house in employee raiding and breach of restrictive covenant action. She is a member of the firm’s diversity and inclusion committee.

Thompson mentors female and minority associates, and she has hosted and organized affinity group events to support diverse attorneys. She devotes many hours to training associations and leads associate training workshops in the firm’s business litigation department.

Thompson is a member of the New York City Bar Association, the New York State Bar Association and the Metropolitan Black Bar Association.

At Kasowitz Benson Torres, partner Hector Torres is co-chair of the firm’s antitrust group. In that role he represents domestic and international corporations in high-profile antitrust and commercial litigation and arbitration.

Torres has handled some of the largest antitrust matters in the country; he represented Ford Motor Co. in connection with the Department of Justice’s largest criminal antitrust investigation.

As co-chair of the firm’s diversity and inclusion committee, Torres has helped promote minority and women partners. Under his leadership, Kasowitz is a mentor law firm for John Dewey High School students and runs their mock trial program. Torres is on the Committee on Character and Fitness for the New York state Supreme Court, Appellate Division, First Judicial Department.

Law firm partner Sergo Urias represents diverse middlemarket private-equity funds and their portfolio companies in complex mergers-andacquisitions transactions globally. His practice focuses on recapitalizations, leveraged buyouts, growth-equity investments and related corporate transactions, working with private-equity and investment funds in the U.S. and Latin America. Before recently joining Akin Gump Strauss Hauer & Feld, Urias was partner and co-chair of Covington & Burling’s private-equity practice group, head of the firm’s Latin America initiative and a member of its corporate practice group.

He co-founded Project Paz, a nonprofit that raises funds for young people in Mexico affected by drug-related violence. Urias has participated in conversations with Mexico’s Ministry of Foreign Affairs on disability protection practices. He is a member of the governing body of the Vance Center for International Justice.

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e t g fi R d e a d b m b w i o a h t F m f

PHOEBE A. WILKINSON

MILTON WILLIAMS

AMY WOLLENSACK

AYSE YUKSEL

LISA ZEIDERMAN

Partner Hogan Lovells

Partner Walden Macht & Haran

Partner Akin Gump Strauss Hauer & Feld

Managing partner Miller Zeiderman

At Hogan Lovells, Phoebe A. Wilkinson represents manufacturers and retailers in class actions and other commercial litigation and arbitration. As global managing partner of advancement at the firm, Wilkinson leads efforts to promote a pipeline of top talent and works on the global leadership team for the firm’s litigation practice.

Recently, she led a team that defeated class certification efforts against LG Electronics and Best Buy and obtained a defense verdict in a dispute between a product manufacturer and an assetbased lender. In collaboration with the firm’s diversity and inclusion team, Wilkinson oversees the setting and achievement of goals for diverse hiring. She is a board member of the Brown University Sports Foundation and a past board member of New York Lawyers for the Public Interest.

Milton Williams has a whitecollar defense practice focusing on trial work, regulation, internal investigations, employment law and complex commercial litigation. The Walden Macht & Haran partner was an assistant U.S. attorney in New York’s Southern District and an assistant district attorney in Manhattan.

Williams, a founding member of his firm’s diversity and inclusion committee, supports increased representation across the legal industry. He was co-chair of the Moreland Commission, and he holds leadership positions with the Cardinal’s Review Board, the Governor’s Screening Panel, Sanctuary for Families and Prisoners’ Legal Services of New York. Williams ran the Sponsors for Educational Opportunity Corporate Law Program for 16 years.

Before Amy Wollensack recently became a partner in the private-equity practice at Akin Gump Strauss Hauer & Feld, she was a partner and co-chair of the privateequity practice at Covington & Burling. She was a member of that firm’s corporate practice group, co-chair of its diversity and inclusion committee, and a leader of its affinity group for Black attorneys. Wollensack represents private-equity funds in leveraged buyouts, recapitalizations and mergers and acquisitions, among other complex transactions. She has mentored law students through the Leadership Council on Legal Diversity. Wollensack is on the board of the nonprofit Housing Plus; she previously was on the Young Leadership Committee of Lighthouse International. She is a member of Apollo Young Patrons, a community of next-generation theater leaders.

Global head of corporate, M&A and securities Norton Rose Fulbright

At Norton Rose Fulbright, Ayse Yuksel develops global strategy and supervises the law practice.

Although Yuksel is based in New York, she leads the firm’s office in Istanbul. The firm’s global head of corporate, mergers and acquisitions, and securities is a member of its global executive committee. In that role she regularly leads cross-border legal teams on client matters. Yuksel has been recognized by The American Lawyer and Chambers. She participated in the Turkey-based Global Relationship Forum, serving on a task force with former Secretary of State Madeleine Albright and former CIA director David Petraeus.

Yuksel is a member of the American Turkish Society’s Young Society Leaders, a member of the board of trustees for Robert College high school and a leader in recent pro bono reports for the World Bank.

Lisa Zeiderman is a matrimonial and family lawyer, divorce financial analyst and litigator at Miller Zeiderman. The firm’s managing partner, a vocal supporter of the Judiciary of New York during a budgetary crisis, wrote an op-ed in the New York Law Journal on the subject. Her legal achievements, which draw from her experience as a former fashion business owner, have been recognized by many legal authorities. She regularly appears on panel discussions and mentors law students at the Fordham University School of Law. Zeiderman works closely with Legal Information for Families Today, a pro bono adviser for underserved families. She is involved with numerous female empowerment initiatives, Jewish organizations and anti-racist efforts.

Olshan congratulates our partners Nina Roket, Lori Marks-Esterman & Elizabeth Gonzalez-Sussman on their selection by Crain’s New York Business to the 2022 Notable Diverse Leaders in Law list.

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Contact Suzanne Janik at 313-446-0455 or email: sjanik@crain.com PUBLIC & LEGAL NOTICES Notice of Formation of SMD INVESTOR GROUP LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 06/08/22.

Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Stuart Romanoff, c/o Romanoff Equities, 833 Washington St., 2nd Fl., NY, NY 10014.

Purpose: Any lawful activity

Notice of Qualification of LYTICAL VENTURES CI II QP, LP Appl. for Auth. filed with Secy. of State of NY (SSNY) on 05/11/22.

Office location: NY County. LP formed in Delaware (DE) on 04/26/22. Princ. office of LP: 250 W. 55th St., 37th Fl., NY, NY 10019. NYS fictitious name: LYTICAL VENTURES CI II QP, L.P. Duration of LP is Perpetual.

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

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Notice of Qualification of TIGONDEROGA NYC LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 05/20/22.

Office location: NY County. LLC formed in California (CA) on 02/22/22. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC, 3535 Inland Empire Blvd., Ontario, CA 91764. CA addr. of LLC: 23300 Ventura Blvd., Ste. 200, Woodland Hills, CA 91364. Cert. of Form. filed with Secy. of State, 1500 11th St., Sacramento, CA 95814.

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Notice of Qualification of BioReference Health, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 06/01/22.

Office location: NY County. LLC formed in Delaware (DE) on 03/10/22. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543, regd. agent upon whom and at which process may be served. DE addr. of LLC: CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, John G. Townsend Bldg., 401 Federal St., Ste. 3, Dover, DE 19901.

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Notice of Qualification of LITTLE ROOKIES BASEBALL, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 05/17/22. Office location: NY County. LLC formed in Delaware (DE) on 12/21/21. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543. DE addr. of LLC: c/o CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, 401 Federal St., #4, Dover, DE 19901.

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Notice of Qualification of THREE PILLARS INSURANCE SERVICES, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 06/07/22.

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REQUEST FOR PROPOSAL

Notice of Formation of ROC TENANT, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 05/24/22.

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

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The Wildlife Conservation Society, RFP for High Ambition Fund for Nature Climate and Peoples Issued 6-24-2022 Bronx Zoo, 2300 Southern Blvd.

Bronx NY 10460 Solicitation Due 7-15-22 at 5:00 p.m. bids@wcs.org To request the Solicitation Email Allan Howell ahowell@wcs.org

Notice of Qualification of TRUVVO GOLDEN LP Appl. for Auth. filed with Secy. of State of NY (SSNY) on 06/06/22.

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Notice of formation of Amani Luxxe Wax Lounge, LLC, a domestic LLC. Articles of Organization filed with Secretary of State of New York (SSNY) on April 8, 2022 . Office location: Bronx County. SSNY is designated as agent upon whom process against the LLC may be served. SSNY shall mail process to: 856 E 221st Apt 2, Bronx, NY 10467.

Purpose: Any lawful purpose.

PUBLIC & LEGAL NOTICES Notice of Qualification of 100 CHURCH RETAIL I LESSEE LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 06/23/22. Office location: NY County. LLC formed in Delaware (DE) on 05/26/22. Princ. office of LLC: c/o SL Green Realty Corp., One Vanderbilt Ave., 28th Fl., NY, NY 10017. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543.

DE addr. of LLC: CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, PO Box 898, Dover, DE 19903.

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Notice of Formation of VANADIS HOLDINGS LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 06/07/22.

Office location: NY County. Princ. office of LLC: 829 Park Ave., Apt. 5D, NY, NY 10021. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 12207-2543.

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RENT

FINANCE

Crain launches brand for families managing wealth

FROM PAGE 1

waves and the continued absence of a broad return-to-office moment, people still want to live in the city, and pre-pandemic New York didn’t actually represent the worst the market could get for renters.

“Landlords are back in the driver’s seat. That’s really what we’re seeing,” said Hal Gavzie, executive manager of leasing at Douglas Elliman. “People are definitely being more flexible in neighborhoods on their wish list, knowing that their options are much more limited than they’ve been in the past.”

BY AARON ELSTEIN

T

Many New Yorkers who scored great deals on apartments in 2020 found themselves facing a rude awakening around this time last year as the quick recovery of the rental market put an end to Covid discounts and gave landlords enough leverage to significantly increase prices. Although there was some concern that landlords were overplaying their hand, this has not proved to be the case so far.

Net effective median rent in Manhattan has increased nearly every month since June 2021, falling only by 1.2% between June and July and 0.4% between October and November of last year, according to Douglas Elliman reports. Prices ramped up particularly quickly during the spring, hitting record highs in April and May. Even rent-stabilized units are facing increases; the city’s Rent Guidelines Board approved increases on these units of up to 5% in June, the biggest raise in almost 10 years.

Lately, the difference between median rents and net effective median rents has been minuscule as landlord concessions have become

BUCK ENNIS

Soaring rents, returning fees

ARI HARKOV said apartment bidding wars were unheard of until recently

down last year.

But broker fees have made a massive comeback. The share of no-fee apartments advertised on StreetEasy has dropped from 75% in 2021 to 55% so far this year, and some renters are now offering to pay a broker fee even if it’s not required as a way to make their application more enticing, Harkov said. The impact of this, combined with the impact of a bidding war, can be massive, he said.

“Let’s say you take a $5,000-a-month apartment, and there’s a bidding war, and it rents for $5,500, but the tenant also pays the broker fee,” he said. “You effectively raise the face rent by over $1,000.”

Shyam Patel, a 24-year-old who works in finance, is experiencing these dynamics firsthand as he scours the city for a five-bedroom apartment for him and his roommates. He scored a great deal on his current place in the Financial District but started looking for a new home after his landlord raised the rent by more than 50%. Patel described the environment as a “battle” filled with nothing but pricey apartments.

“I’ve never had to pay a broker fee before, so I’ve had to wrap my mind around it as an added cost,” he said.

“At the end of the day, I feel like something will come up. It’s more what price I’m willing to pay.”

“LANDLORDS ARE BACK IN THE DRIVER’S SEAT. THAT’S REALLY WHAT WE’RE SEEING.” less and less of a factor. In May the difference between Manhattan’s median rent and its net effective median rent was just $58: $4,000 compared with $3,942, according to the Elliman report for the month.

In some cases, the reverse of a concession has been happening, Brown Harris Stevens agent Ari Harkov said. Bidding wars have been breaking out at apartments, leading to instances where renters end up paying more than the advertised rent, Harkov said.

“It’s just bananas. It was almost unheard of to have a bidding war for a rental before the last six months,” he said. “That didn’t really exist, but now it’s fairly commonplace.”

Broker fees have also become increasingly common in the market.

Although they have long been one of the biggest tenant complaints about renting a New York apartment, they were fairly easy to get around in recent years. They were even briefly illegal following New York Department of State regulations published in early 2020, although the courts quickly paused this rule following a lawsuit from the real estate industry and struck it

Why the frenzy?

Several elements have combined to make the current apartment market so tough for renters. One major contributor is rising mortgage rates, which have likely pushed some people who were trying to buy a home back into looking for apartments, further adding to the competition in the rental market, said Jonathan Miller, CEO of the appraisal firm Miller Samuel.

Harkov echoed this point, noting that even for well-off younger couples, breaking into the housing market remains extremely challenging.

“Part of what’s driving this is all these people from 22 to 40 who have good jobs and good incomes, but they can’t touch the housing market unless they inherited money or sold a company or bought stock,” he said. “I don’t see that changing at

any point in the near term.”

While the rise of remote work remains devastating for the city’s office landlords, it could actually be helping its residential landlords.

There are people who want to live in New York, not because their office is here but simply because it’s New York, and being at a company that has switched to full-time remote work has made it much easier for them to move to the city, said Josh Clark, a Zillow senior economist.

“You have a ton of people with money who are able to work wherever,” he said. “You can see why New York would be very attractive for people to come.”

This puts more pressure on roomier apartments in particular; people working remotely would tend to want extra space for a home office.

Persuading someone to rent a small apartment and use the city as a living room is a less effective pitch these days, Harkov said.

The main sign of relief in sight for renters is seasonality: Demand tends to drop in the fall compared to the summer. Prospective renters should steel themselves for an extremely difficult time at least for the rest of the summer, Miller said.

“My crystal ball is held together with duct tape, but everything we know now suggests that rental prices are going to either be at record levels or flirt with record levels through the summer because volume is expected to continue to rise,” he said. “Unless that changes, I don’t see much of a reprieve.”

While more apartments have started to hit the market, this has not yet led to rents dropping. The demand for these units still well outpaces the supply. This gets at the overall problem behind rising rents, which is that New York is not building enough housing and hasn’t been for years, Clark said. There was a temporary break in these dynamics during the earlier months of Covid, but it clearly did not last, and the market has now reverted to where it was before the pandemic, if not worse.

“New York has had a supply problem for quite a while. We’ve had some of the highest prices around the country for most of recent history,” Clark said. “It’s a city that’s very desirable to live in. All the things that make New York New York are still there and coming back.” ■

he owner of Crain’s New York Business has launched Crain Currency, a weekly newsletter serving family-owned businesses, family offices and family philanthropies as well as their professional advisers.

A companion website and invitation-only networking platform are planned to launch in the fall.

KC Crain, president and chief executive of Crain Communications, said the publication provides “a new trusted resource for families managing wealth.” Crain Communications has been family-owned for 106 years.

The newsletter debuted June 29 and later this year Crain Currency will add a website and invitation-only networking platform.

Marcus Baram, a former senior

AUDIT FROM PAGE 1

The audit found that depreciation of the vessels and other assets for the ferry, which is operated by private contractor Hornblower, accounted for the largest component of unreported costs.

In 2018, EDC made the decision to stop including depreciation in calculating total costs—a practice utilized by the city from 2002 to 2017. The city also removed capital expenses from its calculations in 2018. Lander noted that came shortly after then-Mayor Bill de Blasio, who launched the system in 2017 and insisted on keeping its fare the same as the city’s subway and buses, announced $300 million in capital investment for the ferry system.

Affluent ridership Throughout the de Blasio administration city officials emphasized that the program was designed with an “equity lens in mind” but ridership surveys have found that the system tends to serve affluent riders. An EDC passenger survey published in December found the median income of the average NYC Ferry rider was $98,000.

Lander hinted that de Blasio may have pressured officials to obscure the system’s true cost.

“He was clearly invested in the system that he proposed,” he said.

“It’s reasonable to guess that there was essentially pressure on EDC to put forward information that showed a lower subsidy per ride.”

In a statement, de Blasio said he had not reviewed the audit and its 11 recommendations.

“If there are issues with underreporting at EDC, or by the ferry operators, that should be remedied and whatever accountability or reforms that are needed should be adopted,” de Blasio said. “We need more affordable, accessible transit options connecting the five boroughs now more than ever.”

editor at Fast Company, is contributing editor. The newsletter’s founding director is Mary Kramer, formerly group publisher of the Crain City Brands.

More than 10,000 single-family and multifamily investment offices are thought to exist in the U.S., with many more overseas, presenting a potentially large audience for the new publication. Crain also hopes to target serial entrepreneurs and private-equity and venture-capital principals.

The family-office sector is in the news more often after the collapse of Archegos Capital Management, where founder Bill Hwang bet wrongly on a handful of small and midsize stocks. That led to calls for more rigorous oversight from leaders including Rep. Alexandria Ocasio-Cortez, as explained in the first issue of Crain Currency. ■ Auditors say they also found that EDC paid $66 million for unnecessary expenses. Another $34 million was spent in “questionable vessel expenses” to Hornblower, which oversees acquisition and construction of the city’s ferries.

In one case, EDC paid Hornblower $8.4 million for a “Rockaway Class” vessel but received a “River Class” ferry—city officials did not demand that Hornblower refund the $2.8 million difference.

Lander also criticized EDC’s choice in December to extend Hornblower’s contract 16 months before the scheduled end of the contract during a time when ferry ridership was low and multiple vessels were not in use. This was a missed opportunity, Lander said, for the city to bake real-time pricing into a new contract.

A statement from Hornblower stressed that the audit did not find that the ferry operator violated its contact and noted that Hornblower has “continually worked to deliver quality transit options at affordable fares while expanding the ferry system to include more neighborhoods so that taxpayers get the most out of their investment in the city’s transportation system.”

EDC has agreed to implement some of the audit’s feedback, such as to seek a new system operator to potentially replace Hornblower, but the agency largely disagreed with the report’s findings.

“We believe that relevant data was misrepresented, key facts were misconstrued, or NYCEDC’s contractual agreement with the operator of the NYC Ferry was misunderstood,” Fred D’Ascoli, EDC’s CFO, wrote in response to the audit.

Charles Lutvak, a spokesperson for mayor Eric Adams, pointed the finger at the de Blasio administration and said city officials are working to improve the ferry system.

“The prior administration rushed NYCEDC to establish a large and complex system, and we are keenly aware there is room for improvement,” Lutvak said. ■

26 | CRAIN’S NEW YORK BUSINESS | JULY 11, 2022

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BUCK ENNIS

SMALL- BUSINESS SPOTLIGHT

MANNY ALVAREZ OF Kolstein Center fell for a violin in high school

FOCAL POINTS

Harmonic matchmaking near Carnegie Hall

COMPANY NAME Kolstein

Kolstein Music owner works toward finding the right instrument for each musician

FOUNDED The company was born in the 1940s. Alvarez bought it from the founding family, the Kolsteins, in 2019.

BY CARA EISENPRESS

FULL-TIME EMPLOYEES 15 to 20, depending on the season

S

elling a violin is not like selling a vacuum cleaner.

“It leads to forming a close relationship,” Manny Alvarez said of the intimate sales process that ends with musicians taking home instruments that suit them.

Alvarez in 2019 took over Kolstein Music, an 80-year old string-instrument maker, retailer and repair company based in Baldwin on Long Island. Eight months ago, he opened a Kolstein’s outpost near Carnegie Hall, with the goal of growing through closer ties with the area’s musicians. Kolstein’s, which still has its location in Nassau County, typically brings in $5 million in revenue annually.

Kolstein’s customers include string instrument players from symphonies all over the world, as well as amateurs and students. Kolstein’s also repairs instruments and rents them to people scoring musical theater performances a few blocks away on Broadway.

Kolstein’s sells between 200 and 300 instruments each year, and it might have 550 rentals out at any given point.

Before Rachel Jordan of the New Orleans Symphony flew to New York to find her new violin, for example, she and Alvarez spoke on the phone over the course of several weeks.

They discussed the sound she wanted, the origin of the instrument, the price and the qual-

ity. Together, she and Alvarez tested instruments in the Manhattan and Baldwin locations.

Then, he said, “she found one that she fell in love with.”

His first love Alvarez, 33, knows what that feels like.

When he was in third grade, he joined his elementary school orchestra. He rented a violin and, under the tutelage of an influential music teacher, got serious about playing. By the time he entered middle school, he was fixated on purchasing a better instrument.

His parents pleaded for patience, but by the time he was 15, he had persuaded them to go to Kolstein’s, he said. He fell for a $3,500 violin, and Kolstein’s let him borrow the instrument.

His music teacher admired it. But his parents said “absolutely not,” he remembered.

He ended up with a lesser violin—and a job working weekends at Kolstein’s. He learned about repair and sales as he worked his way up in the business.

He went to college and tried different jobs around the country. He got married and had children. But eventually he came back to Kolstein’s.

The transfer of ownership came at the same time that New York City shut down to try to reduce the spread of Covid-19. Alvarez

nevertheless got creative, trying out ideas that would solidify the business. He updated the infrastructure, digitizing records and documents and uploading the full photographic catalog of the inventory.

“Then we started moving into expansion,” he said.

He opened a pop-up shop in the Roosevelt Field Mall in Garden City. There he learned that some New Yorkers staying at home had turned to musical hobbies. He designed and launched an affordable beginners’ series that started at $220 for a whole set: violin, bow, rosin and case. Inspired by how much his kids liked strumming, he also started selling ukuleles.

Alvarez wanted to support musicians and remind fans about the thrill of live music after months of staying home. He set up weekly performances, first on Long Island and then at the Essex House, owned by Marriott. Setting up the shows led to longer conversations about a permanent future for the music store at Marriott.

Classical vintage feel “There is such a connection between us and Essex, one of the last hotels to have that classical vintage feel,” Alvarez said. He discovered an old retail space off the lobby that had been used to store sofas and chairs. The furniture had to be stowed somewhere

REVENUE About $5 million annually LISTENING TO THE CLASSICS Alvarez never tires of listening to classical music. His favorite composers include Bach, Mozart and Vivaldi. “I love chamber music,” he said.

LIFE CYCLE Not every customer is a professional musician. One recent sale, for example, was to a wellknown doctor who plays music in his spare time. “He had never touched a bass before,” Alvarez said. But he had grown interested in playing, attending Essex House shows and joining Alvarez for dinner. “He bought a bass,” Alvarez said.

WEBSITE kolstein.com during the state’s social-distancing rules.

By the time public gatherings were allowed again, Alvarez had taken a 10-year lease on the 2,700-square-foot space and was preparing to stock instruments and help customers find the one meant for them.

The renovated space now has services, sales, consignments and rentals, and Alvarez, who has held on to his deep love for string music, almost can’t believe he is doing it “all steps from Carnegie Hall.”■ JULY 11, 2022 | CRAIN’S NEW YORK BUSINESS | 27

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