EQ Magazine Summer 2019

L.A. BIOSCIENCE EQUESTRIAN ESTATES SAG HARBOR

YACHTING RENZO PIANO

The Hamptons Issue

GTO 250

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SUMMER 2019

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GTO Engineering produces brilliant classic car replicas for a fraction of the price.

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Publisher’s Note Welcome to the Hamptons

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The Scene

Equicap with Rolls Royce and Panerai

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Watch Review

Panerai submersible collection

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Wheels

Catch Formula 1 Fever

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Fashion

Dressing well on and off the beach

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Food&Drink Highclere gin goes from garden to glass

HAMPTONS

On the cover: GTO 250 Ferrari courtesy of Manhattan Motorcars photographed by Daniel Wagner at Campbell Stables, a luxury equestrian facility located south of the highway in Bridgehampton, NY

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DEPARTMENTS

38 LENDER SPOTLIGHT Q&A with Hall Structured Finance

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L.A. BIOSCIENCE

Creating lab space for start-ups

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DEVELOPMENT

565 Broome is as distinctive as SoHo itself

INDUSTRIAL CHIC

Watchcase reinvents the hottest market

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CLASSIC LIVING

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DEVELOPMENT RIGHTS Successful zoning lot mergers

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AESTHETIC SPLENDOR

URBAN PLANNING

Financing TOD infrastructure

Polo combines power and poetry

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INTERVIEW

STAR ISLAND

Lunch with Shah Gilani

FOOD SCENE

Coffee with David Steingard of Laughing Man

Gurney’s new venue offers relaxed luxury

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REAL ESTATE LAW

New York transfer and mansion taxes

The lure of equestrian properties

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YACHTING

A seven-day itinerary plus yachting etiquette

SAG HARBOR

How to spend the perfect Saturday

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Photo by Daniel Wagner

Everyday Excitement

Local chefs who dazzle palates Out East

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DEAL MAKING

WEALTH MANAGEMENT

China’s booming hedge fund industry

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elcome to the Hamptons. I grew up in Europe and I’ve lived in the beautiful South of France, so I had high expectations the f irst time I headed out to the Hamptons 20 years ago.

I recall feeling underwhelmed as we sat in bumper-to-bumper traff ic on that long drive from the city. It was all asphalt and def initely not picturesque. Where were the charming towns and scenic views I had heard so much about?

About three hours later we arrived in the most magical place and I have been smitten with the Hamptons ever since.

After a long week in the City, nothing compares to the carefree lifestyle enjoyed Out East cooling off in the waves with family and friends against the backdrop of expansive blue sky and perfectly sculpted dunes. One of my best memories of the Hamptons is running on the beach barefoot with my dog, Striker, at dawn. But the Hamptons is also parties, events and, of course, horses.

Our Summer Issue of EQ delves deeply into everything that makes the Hamptons one of the most desirable summer destinations in the world—and certainly a favorite of many Equicap clients. We’re excited to extend our lifestyle departments to include luxe watch reviews, summer fashion and great boats like the Vanquish VQ 58. From how to spend a perfect day in Sag Harbor to the local Hamptons food scene to the most coveted equestrian estates, EQ is on the scene.

Thanks to our partnership with Manhattan Motorcars, we had another great cover shoot—this time with the GTO 250 Ferrari at Campbell Stables.

Our equestrian coverage includes a brief history of polo as well as insights from Faye Weisberg, a seasoned broker with Saunders in Bridgehampton who has the $40 million Campbell Stables listing. We also caught up with Deborah Srb of Sotheby’s International Realty who’s representing The Watchcase in Sag Harbor which has become one of the hottest markets in the Hamptons.

Of course at EQ we will always have real estate development in our DNA. Don’t miss our piece on 565 Broome, the fabulous Renzo Piano development in SoHo as well as stories about zoning (“Transferring Development Rights”), lending (“Q&A with Mike Jaynes of Hall Structured Finance”) and wealth management (“Fund Towns”). We’re thrilled that Bruce McGuire of the Greenwich Economic Forum contributed his insights on the opportunities created by China’s growing domestic hedge fund industry.

We hope you enjoy the new issue of EQ. As always, I welcome your feedback; and check us out online at equicapmag.com.

Enjoy your summer!

EQ.

MANAGING EDITOR Peter Falco PROOFREADERS Sally Wang Nate Geremia Erika Gluckstal EDITORIAL DIRECTOR Diana Mosher CREATIVE DIRECTOR Gregor y Cullen CONTRIBUTORS Colin Amrbose Peter Ambrose Alexander Berger Matty Boudreau Jacqueline Burt Cote Hillar y Davis Stacy Dermont Shah Gilani Daniel Hilpert Mike Jaynes Patricia Kirk Har vey I. Krasner Justin Mastine-Frost Bruce McGuire Eric Miller Jon Ruti Alex von Salad Michael Santora Michael A. Smith Jeffrey Steele David Steingard Stefanie Tabacow Jack Williams ADVERTISING INQUIRIES sales@equicapmag.com 917.586.8364 EDITORIAL/GENERAL INQUIRIES info@equicapmag.com

Daniel Hilpert, Publisher & Editor-in-Chief

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PUBLISHER & EDITOR-IN-CHIEF Daniel Hilpert dhilpert@m-equicap.com 917.586.8364

SUMMER 2019 ISSUE

EQ. is published by EQ Media LLC ©2019. Any reproduction or other use of the articles, contents or photography without express written consent by EQ Media LLC is strictly prohibited.

EQ Media LLC, 10 Grand Central, Suite 1601, New York NY 10017 ©2019 All Rights Reserved.

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S CENE

IN MID-MAY, EQ CO-HOSTED a Spring-time gathering with ROLLS ROYCE OF MANHATTAN MOTORCARS AND PANERAI in the West Village. MORE THAN 250 CLIENTS and their guests enjoyed specially crafted cocktails, snapped pictures behind the wheel of the CULLINAN AND DAWN and were enticed

by Panerai’s watch collection. More photos of the event can be found on our events page @: EQUICAPMAG.COM/PANERAI-ROLLS/

ROLLS ROYCE & PANER AI

EQUICAP WITH

PHOTOGR APHY

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SUMMER 2019 ISSUE

PATRICK MCMULL AN

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WATCH RE V IE W

THE PANERAI

DIVES DEEP

WITH SUBMERSIBLE COLLECTION IN 2019 WRITTEN BY

T

hough technically the Panerai Su bmer si ble’s r o ot s c a n be t raced back to 19 56, and the brand’s massive 60mm commission for the Egyptian Navy known as the L’Egiziano, until very recently Luminor Su bmer si ble models have rema ined rat her fr inge offerings from the brand.

A handful of key releases have surfaced more recently, but it was earlier this year at SIHH where the brand went all-in on the model, splitting it out into its own collection and releasing over a half dozen new models celebrating the occasion. Panerai’s design aesthetics have always been distinct, and the roots of both the Luminor and Radiomir trace back to early military issue diving watches, though with the Submersible an added layer of practicality is added in the form of its unidirectional rotating 60-minute timing bezel — an obvious staple of the modern dive watch category.

Of the pack of new releases, three particular examples appeared in very limited production runs (less than 30 examples each), being offered in a particularly unique fashion. With the purchase of these three

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PANERAI HAS ADDED COLOR TO THEIR REPERTOIRE WITH MODELS LIKE THE PAM959.

watches, not only were you getting an especially rare piece from the brand, but also access to one of three incredible and exclusive experiences tied to the design of each watch. The adventures paired with these watches included a diving expedition with world record freediver Guillaume Nery, an arctic exploration expedition with famed conservationist Mike Horn, and f inally two days of training with none other than Italy’s Marina Militare elite frogmen.

Sadly, each of these limited edition models sold out quite promptly, however the brand opted to issue a variation of each model for series production. All three models measure 47mm across, though are quite distinct from one another in several ways. In the case of the Marina Militare, it is cased in Carbotech — the brand’s proprietary variant of forged carbon fiber, which is designed to be strong and lightweight in a manner that easily surpasses titanium. In the case of the Mike Horn limited edition, its casing is in titanium, giving it a more conventional look overall. That said, it stands out from the pack on account of two key details. First, its bezel is cut with its numerals in relief, which is out of the ordinary for the brand, and second, the text that would historically appear on its dial is instead printed on the underside of its sapphire crystal — a unique detail giving the piece an added layer of visual depth.

SUMMER 2019 ISSUE

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Images courtesy of Panerai Watches.

Justin Mastine-Frost

WATCH RE V IE W

The f inal of fering of the trio, dubbed the Submersible Guillaume Ner y, a lso feat ures a tita nium 47mm ca sing, though unlike its counterparts a chronograph complication is added to the equation. Screw-down pushers mounted to the left side of the case assist in maintaining its 300m water resistance, and from a functional standpoint Panerai remains one of the few watch brands that opts to display the chronograph’s elapsed minutes via a central hand rather than on a compact subdial. While this may not sound like that big of a deal at f irst glance, it does take a modest amount of retooling to execute, however if you’ve ever used one you’ll

certainly appreciate the signif icantly increased legibility that comes with it.

If none of this trio are enough to spark your interest, or if there’s concern about the oversized 47mm case sizing being overpowering, the brand has also scaled the Submersible down to both 44mm and 42mm sizing of late. Personally, I was immediately enamored with last year’s 42mm Submersible release, and further additions in this case size have yet again piqued my interest. Regardless of your wrist size and preferences, there are plenty of Submersibles to choose from this year, and none are a bad idea. ■

As expected, all Submersible models are fitted with Panerai’s unique locking crown mechanism, first launched in 1950.

USING A PROPRIETARY CARBON CASE, THIS 47MM SUBMERSIBLE PAM979 IS SURPRISINGLY LIGHT WEIGHT.

THIS UNIQUE BEZEL DESIGN IS LIMITED TO THE T WO MIKE HORN SUBMERSIBLE LIMITED EDITIONS THAT L AUNCHED THIS YEAR.

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SUMMER 2019 ISSUE

THE PAM683 IS ONE OF A FEW NEW MODELS OFFERED IN A MORE CONSERVATIVE 42MM CASE SIZE.

EQ.

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Photo credit: Shutterstock

W HEEL S

U.S. Fans Catch Formula 1

FEVER WRITTEN BY

Jack Williams

The average fan is male, aged 25 to 44; and typically has an annual income of over $75,000.”

FOR MORE THAN 70 YEARS, FORMULA 1 HAS BEEN one of the world’s pinnacle motorsports, intriguing viewers through its mix of glitz and glamour, high speed twists and turns and the billions of dollars’ worth of spectacle that come with every traveling roadshow event. Given the stacks of dollars Americans spend every year on sports and entertainment, it’s no surprise that F1, as it is known, has spent decades trying to successfully tap into the U.S. market.

Despite mixed results in years past, recent data suggests that the sport’s U.S. popularity may finally be gaining traction.

The sport itself— competing in a landscape dominated by NASCAR and Indy Racing—previously had a stop-start relationship hosting its own U.S. Grand Prix. Formula 1’s version of the race returned to the U.S. in Austin, TX, in 2012. Before then there were spells in Indianapolis, IN, 2000-2007; Phoenix, AZ, 1989-1991; Watkins Glen, NY, 1961-1980; Riverside, CA, 1960; and Sebring, FL, 1959.

Data collected by Nielsen, a global information and measurement company, shows that since the 2012 return to Austin, U.S. interest has risen from 17 percent to 21 percent in May 2018, and fans “very interested” or “somewhat interested” peaked as high as 24 percent during that six-year timeframe.

The profile of the average American Formula 1 fan ref lects the high-end aspects of the sport, which had annual revenues of $1.827 billion during its 21-race season in 2018. The average fan is male, aged 25 to 44; and typically has an annual income of over $75,000.

Peter Habicht, the founder of Formula 1’s largest fan group in America with around 2,500 members, believes that digital media and increased behind-the-scenes access to the sport has helped improve interest dramatically.

In years prior, Formula 1 chased new streams of revenue by

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granting grands prix to Abu Dhabi, Singapore, Shanghai and Kuala Lumpur. This benefitted the sport globally, but in the process damaged the chances of maintaining a footprint in the U.S., where live races (the primary focus) varied dramatically compared to dedicated time slots tied to other motorsports.

U.S.-based Liberty Media, in 2017, acquired Formula 1 for $8 billion and their approach to coverage seemingly improved. At the time, the new CEO declared that despite varying global start times, the sport’s focus in the U.S. would be on Super Bowl-like events for mobile content; behind-the-scenes access would keep fans engaged away from such races.

Today, Habicht and others enjoy YouTube channels and podcasts dedicated to drivers, on and off the circuit. “They’ve been able to go behind the scenes, showing a more human side of the sport,” says Habicht. Premiering in March 2019, a Netflix original series, Formula 1: Drive to Survive, took an exclusive look at the intense and lavish lifestyles of the sport’s drivers and their teams.

In a recent interview, Sean Bratches, the managing director of commercial operations for F1, said that digital consumption in the U.S. is up “significantly,” placing the U.S. as the No. 2 market globally for F1.com from a nominal standpoint, behind the U.K. On a ground level, too, Formula 1 has aimed to keep fans in the U.S. engaged year-round—not just when the U.S. Grand Prix rolls into Texas. In the past two years, fan events have been held in Miami, Los Angeles and Chicago. Habicht encourages the sport to host more, as well as embrace the celebrity ties the glamorous sport already has in America—whether it be fans like Matt LeBlanc and Keanu Reeves, or friends of drivers, like Stephen Curry.

Ultimately, the growth of Formula 1 in America will be dependent less on the U.S. races themselves, those events continue to attract a loyal fanbase. But, the focus will shift to what Formula 1 has become in the 21st Century: less a series of glamorous, high-intensity events and their foot traffic; and, more a global, all-access media and entertainment brand with those races at its soul. ■

SUMMER 2019 ISSUE

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C OV ER S TORY

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C OV ER S TORY

WRITTEN BY

Jack Williams PHOTOGR APHY BY

Dan Wagner

EVERYDAY EXCITEMENT CL ASSI C CA R R EP LI CAS

I

n August of 2019, auction house RM Sotheby’s will roll out a classic 1962 Ferrari 250 GT SWB Berlinetta onto the sales blocks at its flagship three-day event, in Monterey, California, with early estimates already predicting the vehicle could fetch anywhere between $8,000,000 and $10,000,000. So coveted are Ferrari 250s of this era–from Berlinettas to Testa Rossas, California Spyders to GTOs– asking prices have continued to rise over recent years, and it seems like every few months a record is broken as fees climb higher and higher into the double-digit millions.

GTO ENGINEERING PRODUCES CL ASSIC CARS THAT ARE NEARLY 100 PERCENT THE SAME AS THE ORIGINAL AT A FRACTION OF THE PRICE.

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These enormous fi gures, however, come as no surprise to those in the classic car community, given the rarity of the remaining vehicles from Ferrari’s 1953 to 1964 series of 250s; their individual histories, which range from movie appearances to race wins; and, of course, the incomparable driving experiences they still offer even today.

Let’s take the 250 SWB Berlinetta–only 165 were ever produced from 1959 until 1962, and stories, no doubt, are stamped to each and every one of them. This model of 250 came with the esteemed 3.0 liter, V12 engine that was indicative of Ferrari’s racers at the time. SWB Berlinettas won the 1960, ’61 and ’62 Tour de France Automobile.

Heavier steel bodies (around 80-something of them, for street use) and light-weight aluminum versions (for racing) made this the model of choice for 250 “customers [who] were able to win the race on Sunday and drive to the office on Monday, all in the same car,” Marcel Massini, a renowned Ferrari historian who advises the likes of Sotheby’s, told EQ. But what if such a car can’t be driven to work on Monday by those who wish to do so some 60 years later? What if price points and availability hinder some from ever obtaining, or fear of damage freezes those who are already fortunate enough to own?

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C OV ER S TORY

GTO ENGINEERING ENSURES THAT EVERY VEHICLE IT BUILDS HAS A UNIQUE I.D. NUMBER AND PAPERWORK THAT IS TIED TO AN ORIGINAL FERRARI.

One such vehicle sitting in Manhattan Motorcars, on 11th Avenue in Midtown Manhattan, looks to offer an alternative.

Upon fi rst glance, the gleaming black coupe looks just like any other pristine SWB Berlinetta from decades ago.

Ferrari badge: check.

Iconic body shape: check.

Gear stick, dial positions, steering wheel design: check, check and, well, check.

Price: $1.39 million Wait, what?

Yes, according to Mark Lyon, whose company GTO Engineering produced the car on show, this model is “nearly 100 percent the same” as the original, and at “one tenth of the price.”

The 250 GTO, as it is named, may have been inspired by 1950s and 60s Italian design, but it was actually constructed by the hands of Brits in 2018. Based in Reading, England, just west of London, GTO Engineering has focused on Ferrari servicing and restoration since it opened in 1994. As Ferrari’s classic models become ever older, parts wear out; replacements become scarce or non-existent. GTO Engineering then steps in to make the new ones themselves — which may mean building, say, a replacement engine from scratch for a customer who wants to take out a valuable original and protect it.

In 2008, however, the global fi nancial crisis hit, impacting GTO Engineer’s forecasts for their traditional work. “I said to my staff, ‘This is going to be a quiet year this year — what do you say to building a whole car?,’” Lyon, whose company has 42 staff in its U.K. headquarters and an operation in Los Angeles, explained. “Everyone liked the idea. So, we started then with a

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couple of deposits from clients, and started making cars.”

What came next Lyon describes as “very advanced reverse engineering.” Knowing he and his staff had either made or owned all the parts to make up the likes of a short-wheel-base (SWB) Berlinetta, they set to work on making their own version of the car that was as close as possible in looks, performance and feel to the original. That process took around two years from design stage to the fi nished model, and, to date, the company has made some 28 vintage Ferraris, 22 of which are like the one in Manhattan Motorcars, Lyon said.

On average, three members of staff will now work on each ground-up creation, and the process now takes around 18 months for models of cars whose designs the company has worked on in the past. (There are future plans for a California Spyder.) And while Lyon admits that they will always have to source tires and carburetor that cannot be made in-house, thousands of pieces are individually crafted in Reading —even those that make up features that perhaps weren’t around in the ’50s and ’60s.

“We never try and pass one of our cars off as an original car,” Lyon said. “We’re making the perfect copy, but it is a copy.”

Air conditioning, for example, is one such request that GTO Engineering is often asked to add to their Ferraris, keeping it hidden to be true to the original design, while newer electrical parts also improve reliability. The 250 GTO commissioned by Manhattan Motorcars has an engine that is half a litre more powerful than the original.

GTO Engineering also ensures that every vehicle it builds has a unique I.D. number and paperwork that is tied to an original Ferrari —even if their starting point is what remains of a car that’s been burnt out or had numerous parts stolen off it and nothing more. “We’re not destroying any cars,” said Lyon, who

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C OV ER S TORY

“We’re making the perfect copy.” added it’s preferable if the model whose I.D. they are working with is older but not essential. “We don’t need any parts; we’ve got all the parts…We like to have something physical if we can — so, a bit of chassis, or some parts, if possible. But we basically make the car.”

For that reason, Marcel Massini, the Ferrari expert, estimates that while there were only 165 SWB Berlinettas created from 1959 to 1962, as many as 300 or more additional versions with Ferrari I.D.s could have been built by companies similar to GTO Engineering, who operate in a market that includes those working on replica Jaguar E-Types and vintage Porsches.

This has split opinions in the car collecting world. Massini, a purist, has called the use of I.D. numbers tied to perhaps more mass-produced Ferraris “sacrilege” and says it’s a shame that “other Ferraris are being butchered and basically killed to use their identities or their remnants to build a 250 SWB replica.” Others see it as a cheaper alternative to have access to a design of Ferrari that otherwise remains out of reach — like a classic painting purchased for an exorbitant fee and then locked away in a private collection, and not shared with the public.

Miles Miller, the chief operating of f icer of Manhattan Motorcars, while sympathetic towards the views of Massini and others, said the focus should simply be on the craftsmanship itself. Miller was not intending to commission such a car when he visited GTO Engineering around two years ago, but having been impressed by the performance and build quality, he and his father, Brian, who owns the business, saw a car that they believe could offer a weekend drive for those who cannot get their hands on the original — or even a daily drive for someone who does not want to damage their own rare Berlinetta itself.

“There’s always going to be people who poo poo it a little bit because it’s not original and everything like that. It’s still a beautiful piece of engineering; it’s stunning to look at; it sounds great — so don’t over complicate it.”

Lyon, naturally, agrees. “There are some people who don’t like it, but most people say, ‘I can see why they’re doing that — that does make a lot of sense,” he said. “You don’t want to use something that’s very unique and irreplaceable; you want something you can use and have fun in.

Not many people use the original cars anymore — which is very sad, but it’s true.” Lyon hopes to hear the sound and see the sight of a new GTO out and about soon.” ■

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HEART OF THE VILLAGE, HISTORIC HOME. 6

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© 2019 Nest Seekers International. All rights reserved. Licensed Real Estate Broker NY, NJ, FL, CA. Nest Seekers International fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. All material presented herein is intended for informational purposes only and has been compiled from sources deemed reliable. Though information is believed to be correct, it is presented subject to errors, omissions, changes or withdrawal without notice.

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CHIC INDUSTRIAL

WRITTEN BY

Jeffrey Steele

HOW THE WATCHCASE HELPED CREATE THE

HOTTEST MARKET IN THE HAMPTONS Photos courtesy of Sotheby’s International Realty

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H A MP TON S

THE FACTORY WAS BUILT IN 1881 AS A COTTON MILL AND L ATER CONVERTED INTO A WATCHCASE FACTORY BY BULOVA WATCH.

“ It was a bold redevelopment plan. There was nothing like The Watchcase in the Hamptons.

— DEBORAH SRB

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hen the Long Island Railroad’s Sag Harbor branch launched in 1870, the former whaling and shipping village evolved into a summer resort town, and later a World War II-era shipyard center. Its industrial past now a distant memory, the village has morphed into a favored retreat over the last 15 years. It’s now the Hamptons’ strongest real estate market.

Comparatively recent developments include the transformation of an old motel into Baron’s Cove, a resort epitomizing Sag Harbor’s waterfront revitalization, and a proposed three-townhouse waterfront project that includes a 1.25-acre public park at 2 West Water Street from local developer Jay Bialsky. Of earlier vintage is The American Hotel which was converted from boardinghouse and saloon into a Sag Harbor icon 40 years ago.

But nothing in Sag Harbor history has bested the redevelopment of the long-vacant, 138-year-old Bulova watchcase factory into a highly coveted 63-residence com mu nit y of tow n house s, fac tor y lofts, bungalows and penthouses within one block of the waterfront, which is renowned among those in the boating community as one of only two deep water harbors in the Hamptons, the other port being Montauk.

TREASURED RELIC “The creation of The Watchcase resulted in an important but moldering Sag Har-

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bor structure redeveloped into a symbol of village revival,” says Deborah Srb, Senior Global Real Estate Advisor and LBA for Sotheby’s International Realty in Southampton, N.Y. “Sag Harbor has always been a hub of activity,” she says.

“In the last five or 10 years, it has suddenly spurred a greater interest among young and old, from Palm Beach to Manhattan to Europe even. Homes have gotten bigger, urban living has migrated out east, and something had to be done with the factory,” added Srb. “The result was a bold redevelopment plan. There was nothing like it in the Hamptons.”

The factory was built in 1881, originally serving as a cotton mill, according to Srb. Later converted into a watchcase factory by Bulova Watch, it was abandoned after decades of use in 1979 and then stood vacant for more than a quarter century. But the building’s Victorian-era design and rich legacy to the Sag Harbor community were too signif icant to be consigned to the wrecking ball. In 2008, the village granted approval to developer EQ.

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H A MP TON S

Cape Advisors to launch redevelopment of the hulking but historic structure.

The redevelopment yielded a total of 47 factory lofts including penthouses within the original structure. An additional nine townhouses were constructed on the grounds. The development’s 8 bungalows are situated at the base of the townhouses.

The residences of The Watchcase came on the market in 2014. “People were so excited about this offering that they had waiting lists of up to 880 prospective buyers,” Srb recalls.

“Sales people did nothing the f irst few weeks but write contracts. Over the next four years, they did very well. The response from buyers was a result of the building itself being of such special historical significance. But it also resonated with people who wanted a low-maintenance, concierge lifestyle at this price point.”

Contributing to success as well were unexpected extras, like the development team’s ability to place a 130-vehicle parking garage beneath the entire block that encompasses The Watchcase. All town homes and penthouses offer private subterranean garages.

Watchcase amenities include an expansive 80-foot salt water pool, a spa massage room and fitness center complete with the Peloton experience. A chef ’s kitchen accompanies a private clubroom, which can be reserved for private parties. Above all, is the perspective enjoyed atop the factory, from the vantage point of the private rooftop terraces. All remaining penthouses enjoy the highest elevation of any point in Sag Harbor, overlooking village rooftops to offer sunset panoramas of sailboats on the harbor and an unobstructed view of the Fourth of July f irework display.

When Srb became the exclusive sales agent of The Watchcase last year, several town homes and penthouses remained unsold. Drawing from her interior design background, Srb suggested that the sponsor add elevators to the seven remaining three-, four- and five-story town homes and lower their prices, which she considered too high.

“You enter the parking garage off Division,” Srb says. “Open your car door, and the elevator is right there. You can take groceries up to the kitchen, or bring suitcases to bedrooms on higher floors.”

The town homes mirror the classic architecture of Sag Harbor with shingled and clapboard exteriors in Colonial Revival and Greek Revival. Two penthouses remain available at $4.4 & WATCHCASE AMENITIES INCLUDE AMAZING VIEWS AND AN 4.9 million with panoramic rooftop views and 80-FOOT SALT WATER POOL three terraces with more than 1,200 square feet of outdoor space. At $4.6 million, 43 Church Street is the largest deck, an outdoor shower and water views, leaves little to be town home delivering nearly 5,000 square feet of livable space. desired. According to Srb, the remaining 10 townhomes and It mirrors the Italianate architectural style and industrial heripenthouses provide “a unique opportunity for yachtsmen, tage of the Watchcase with its red brick façade and ornamental the boating community and those desiring industrial chic cornices. A top-level lounge complete with an expansive rooftop move-in ready walkability.” ■

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B U I L D YO U R PA RA D I S E

A PA R T I C U L A R LY U N I QU E PI E C E O F R E A L E S TAT E I N T H E H A M P T O NS .

M A K E T H I S Y O U R H O M E . M A K E T H I S Y O U R V I E W. M A K E THIS YOUR LIFE .

Photos courtesy of Stankevich Photography

AMAGANSE T T, NEW YORK / SOUTH OF THE HIGHWAY / 4 0 0 FEE T OF OCE ANFRONT FOUR PARCELS CONSISTING OF 1.9, 1.9, 2.8 AND 2.8 ACRES: TOTALING 9.4 ACRES

GROUP STA NK EVICH P E G GY S TA N K E V I C H T 631 377 0190 P E G G Y S TA N K E V I C H @ G M A I L . C O M G R O U P S TA N K E V I C H . C O M

H A MP TON S

A P ER FEC T

SAG HARBOR WRITTEN BY

Stacy Dermont

PHOTOGR APHY BY

Barbara Lynne Photography

SAT U R DAY

R

evered for its walka b i l i t y, h i s t o r ic buildings a nd small tow n vibe, Sag Harbor Village is beautiful every day, but on summer Saturdays the appeal is turned up to 11 with its weekly farmers market and a variety of events.

I F Y O U ’ R E B O AT I N G I N —

Find the farmers market just a stone’s throw from the Sag Harbor Municipal Dock (sagharborny.gov) on the grounds of the Sag Harbor Yacht Club (sagharboryc.com). In addition to seasonal produce, you’ll be offered samples of local edibles worthy of provisioning the fi nest galley, such as Amagansett Sea Salt (amagansettseasalt.com), Open Minded Organics fresh herbs (openmindedorganics.com), and Sagaponacka Vodka (sagaponackfarmdistillery.com). Plus, everything you could need to throw a fi ne picnic, like Mecox Bay Dairy cheeses (mecoxbaydair y.com), Blue Duck Baker y breads ( blueduckbaker ycafe. com) and Wölffer Estate Vineyard wines (wolf fer.com), including their famous rosé, chilled.

Locate anything your boating adventures require next door at Sag Harbor Yacht Yard & Ship Store (725-3838) and Tight Lines Bait & Tackle (725-0740).

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H A MP TON S 1

CLOCKWISE: 1) YACHT CLUB. 2) SAG HARBOR CINEMA, MAIN STREET. 3) DONUT FROM THE GRINDSTONE. 4) THE AMERICAN HOTEL. 5) BEACH. 6) WINDMILL WITH JOHN STEINBECK IMAGE. 7) VIEW ALONG MAIN STREET.

Across the street you’ll f ind phone chargers and much more at Geekhampton, the Hamptons’ only Apple Premier Partner (geekhampton.com).

I F YO U ’ R E M OTO R I N G I N —

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You’re likely heading in on the Sag Harbor-Bridgehampton Turnpike which becomes Main Street. From this direction you’ll be tempted to join the masses for breakfast at Estia’s Little Kitchen (estias.com). It’s popular for good reason, but consider waiting until later for a low-key lunch or dinner, if American/ Mexican appeals.

Just pa st the Ma sha shimuet Pa rk tennis courts (mashashimuetpark.org; relax, everyone calls it “Mash” Park), locals grab a real-deal egg sandwich to start their days at the Cove Deli (283 Main Street, 631-725-0216). Their most popular take on this Long Island classic is bacon, egg and cheese— on a kaiser roll, of course.

Across the street from “the Cove” is Sag Harbor’s nearly 40-year-old independent, Canio’s Books (canios.wordpress. com). Grab the latest novel or a classic by a local author like John Steinbeck, E.L. Doctorow or James Fenimore Cooper.

Or is it time to linger over brunch at Wölffer Kitchen (wolfferkitchen.com), Baron’s Cove (caperesorts.com) or Il Capuccino Ristorante (ilcaps.com) (beware bottomless Bloody Marys)? Or maybe grab a dozen different brioche-style donuts from Grindstone Coffee & Donuts (grindstonedonuts.com). Sag Harbor is not known for its health foods—except those found at Provisions Café (provisionsnaturalfoods.com) and the sushi at Sen (senrestaurant.com). Now that you’re fueled, fi nding ways to spend the rest of the best day in Sag Harbor is easy.

EXERCISE— Rent a paddleboard or kayak from Flying Point (f lyingpointsurf.com) and walk it to the bay— or rent a bike from Sag Harbor Cycle Company (sagharborcycle.com) to visit nearby Long Beach. A walk, or run, up and down its length is over two miles.

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H A MP TON S SAG HARBOR MARINA

ENTERTAINMENT— Check the lo-

cal newspaper The Sag Harbor Express (sagharbroexpress.com)— or tune in to our famous time capsule of a radio station, WLNG at 92.1 FM (wlng.com)— to fi nd out what local venues are up to.

Many of our most architecturally and culturally signif icant sites offer events such as concerts, art exhibitions and tours. Local draws include the Annie Cooper Boyd House (sagharborhistorical.com), Bay Street Theater (baystreet. org), Eastville Heritage House (eastvillehistorical.org), John Jermain Memorial Library ( johnjermain.org), Old Whalers’ Church (oldwhalerschurch. org), the Sag Harbor Whaling & Historical Museum (sagharborwhalingmuseum.org) and Temple Adas Israel (templeadasisrael.org).

SHOPPING— Sag Harbor boasts one of the East End’s top antique stores in Black Swan Antiques, its many one-ofa-kind fi nds like old maps and signage, maritime tools and vintage sports equipment are located adjacent to top showroom Grenning Gallery (grenninggallery.com). Check out some of the other galleries on Main Street like Keyes Art ( juliekeyesar t.com) and Tulla Booth Gallery Fine Art Photography (tullaboothgallery.com).

Don’t miss Washing ton Street for some of the best period interior piece s at L e La mpade ( lela mpade.com) and Ruby Beets (rubybeets.com). And, if you need a little sartorial infusion to meet Sag Harbor’s casual dress code, T-shirts and sweatpants are the top sellers at Henry Lehr Men (27 Washington Street, 631-808-3635).

TUTTO IL GIORNO AND URBAN ZEN

home, check out Urban Zen/Tutto il Giorno— mother and daughter team Donna Karan and Gabby Karan Felice have sandwiched a tremendous amount of design and deliciousness into this former gas station. You’ll often f ind a DJ rocking the house on Saturday nights. (urbanzen.com; tuttoilgiorno.com)

DI N I N G— I f you wa nt to ma ke a

splash in this village’s dining scene, try a waterside table at Le Bilboquet (631808-3767) or in view of the water at Dopo La Spaggia (dopolaspiaggia.com), on the porch of the American Hotel (theamericanhotel.com), at Lulu Kitchen & Bar (lulusagharbor.com) facing the wood-fi red kitchen or looking down on the water from the Beacon (beaconsagharbor.com). The local American Legion Post provides some top seats at The Dockside (docksidesagharbor.com) where outdoor seating faces the water and, inside, you can check out cool art fi lms screened across canvas walls.

If you want to dine in the lap of luxury while trying out tables and chairs that you might purchase for your own

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JOHN JERMAIN MEMORIAL LIBRARY CEILING

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NIGHT CAPS — You picked out a cigar at the American Hotel, right? Top spots for late night bites and bevs are Back Page Patio Ca fé ( page63main. com) and the nearby Murf ’s Backstreet Tavern at 64 Division Street. At press time, Mur f ’s, a classic dive bar, wa s about to open under new management that promises to keep it just as small and haunted as ever. Be very aware that there’s a game of darts being played just inside Murf ’s front door; enter cautiously and you just may survive to spend another day exploring Sag Harbor. ■ equic apmag.com

THE CLUBHOUSE DINING

BOWLING

EAST HAMPTON INDOOR TENNIS

MINI GOLF

ARCADE

1 74 D A N I E L’ S H O L E R O A D | E A S T H A M P T O N | W W W . E H I T C L U B H O U S E . C O M

EQUE S TRI A N

‘CLASSIC’ LIVING

GTO 250 WITH GAMA ALPACA AT CAMPBELLS STABLES IN BRIDGEHAMPTON

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EQUE S TRI A N

WRITTEN BY

Daniel Hilper t | PHOTOGR APHY BY Dan Wagner

T H E E A S T EN D I S K N OW N FO R I T S H O R S E S H OWS A N D WO R L D C L A S S EQ U ES T R I A N ES TAT ES equic apmag.com

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EQUE S TRI A N

he Ha mptons are know n for celeb-owned mansions and charming century-old cottages. The East End’s idyllic setting with wide open spaces overlooking endless farm fields, easy access to the best beaches, a fabulous social playground and home of the Hamptons Classic also makes it ideal for equestrian properties.

T H E R E I S NO T H I NG L I K E S U M M E R I N T H E H A M P T ON S to pique equine interests and see some of the world’s fi nest horses in action.

From the exhilarating, heart-pounding excitement of the Southampton Polo Club to the glitz of the Hampton Classic, the East End is unparalleled on the outdoor show riding circuit.

AN EQUINE TRADITION The Classic as we know it today began in 1976. But its roots trace back to the early 1900s when an annual horse show was held in Southampton off First Neck Lane overlooking Agawam Lake.

The event was held every year until the outbreak of World War I. It returned in the 1920s at the Southampton Riding and Hunt Club which had its headquarters north of Southampton Village on a property along Majors Path. The show was held every year throughout the 1930s, but it came to an end in the 1950s when the Southampton Riding and Hunt Club broke up. At that time the role of the Majors Path farm as home to the Hamptons’ prized horse show came to an end.

Even after the disappearance of the show, riding remained popular in the Hamptons. By 1970, several horse farms were established on the East End including Stony Hill Stables, the Topping Riding Club and Swan Creek Farms.

These farms held small unrecognized shows and were also the fi rst ripple of an equestrian wave that would steadily crest across the Hamptons over the next half-century and resulted in the Hampton Classic Horse Show.

During the 1980s, the Classic became an entrenched part of the Hamptons social scene. The excitement is most palpable on “Grand Prix Sunday.” But despite all its gloss and celebrity flash, the Classic’s true foundation is the surrounding community. The rise of the local riding scene has paralleled the rise of the Classic. What was once home to a handful of small stables has grown into a horse-riders paradise with large equestrian estates.

STEEPED IN HISTORY Every so often, a real estate agent has the opportunity to list one of the Hamptons’ stunning equestrian properties boasting acres of open space with beautiful pastures, expansive fields and breathtaking homes to match.

One of the largest horse farms in the Hamptons today is Two Trees Stables on Hayground Road in Water Mill. Originally constructed as a farm in the early 20th century, the property was previously known as the old Carwytham Farm. When David and Jane Walentas purchased it from the Baldwin family in 1993 they undertook a major restoration and expansion of the property.

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The East End’s idyllic setting with wide open spaces overlooking endless farm fields makes it ideal for equestrian properties.

SPECIAL THANK YOU TO MICAEL A BATTO FOR LENDING EQ USE OF GAMA ALPACA FOR OUR PHOTOSHOOT.

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“

EQUE S TRI A N

The design and development of this venue was fueled by a love for horses and the sport.”

— FAY E W E I S B E R G

Today, Christopher Burnside, an Associate Broker with Brown Harris Stevens, has the listing on this coveted 65-acre equestrian estate. Two Trees Stables is known as the former site of the Mercedes-Benz Polo Challenge. The estate features three horse barns with tack rooms, lounge and bathrooms, two indoor riding arenas, an extensive staff quarters and acres of paddocks and polo fields.

Whether you’re looking for a gentleman’s farm with a few stalls, a state-of-the-art equestrian estate or a facility with polo fields, the Hamptons offers it all. Dana Trotter, Associate Broker and Senior Global Real Estate advisor with Sotheby’s International Realty, who has been an avid rider all her life says, “working with a broker who understands the intricacies of properties tailored for show jumping, polo, dressage or even a lovely gentleman’s farm will save time and frustration for the buyer.” Also, many farms are not officially listed, so it helps to be active on the scene to fi nd off market opportunities.

STATE OF THE ART ESTATE Campbell Stables, located south of the highway in Bridgehampton, is recognized as one of the fi nest luxury equestrian facilities. The property was developed on 20 acres of prime

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agricultural land by current owner and shoe mogul Bob Campbell of BBC International in 2015. “The design and development of this venue was fueled by a love for horses and the sport,” says Faye Weisberg, a seasoned broker with Saunders in Bridgehampton, who has the listing for $40 million.

The stunning equestrian estate sits on 18 acres and is comprised of five structures that are conf igured around a central courtyard.

The traditional façades have white clapboard with hunter green standing seam roofs and crimson red window muntins and mullions.

G ue s t s a r r i ve t h r ou g h a g r a nd e n try connected to several smaller intimate courtyards with brick pathways and native landscaping. The proper ty includes a 15,000 -square -foot indoor ring, three outdoor rings and 14 paddocks. The custom-made stables hold 27 stalls. Vaulted ceilings with exposed heavy timber beams are accented by the black iron work and the herringbone pattern brick inlays located in the central aisle.

For those who love equestrian events like the prestigious Hampton Classic—and wish to live a true Hamptons lifestyle— these properties embody what it means to love horses and the East End. ■

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hamptons legendary equestrian estate Set on 20.3 /- acres this facility incorporates 27 stalls with drainage system, 14 paddocks, 3 outdoor rings, viewing stands, a 15,000+/- sq. ft. indoor ring with second floor viewing and entertaining lounge, 2 tack rooms, bathing stalls, managerial offices and staff housing. +

Included is an adjacent vacant 1.44+/- acre building lot, able to accommodate a residence with pool, pool house and tennis.

Bridgehampton South | Exclusive $40M | BridgehamptonEquestrianEstate.com

Faye Weisberg

Licensed Real Estate Salesperson

(516) 662-7708 FWeisberg@Saunders.com Cell:

FayeWeisberg.com 2287

montauk highway, bridgehampton

“Saunders, A Higher Form of Realty,� is registered in the U.S. Patent and Trademark Office.

EQUE S TRI A N

Unparalleled

Aesthetic Splendor CORE STRENGTH IS KEY TO POWER THE STROKES AS A PL AYER LEANS OVER THE SIDE OF THEIR MOUNT AT TOP SPEED.

S

taged in perfectly manicured bucolic idylls, and perceived as the preserve of only a genteel aristocratic elite, polo is one of the most technically nuanced, strategically complex and aesthetically dynamic sports in the world.

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EQUE S TRI A N

WRITTEN BY

Daniel Hilper t

The sport of kings dates to nomadic warriors in classical antiquity more than 2 ½ millennia ago. Used for training cavalry, the game was played from Constantinople to Japan in the Middle Ages. The polo grounds of Tamerlane, a Turko-Mongol ruler of the Balas lineage who conquered vast parts of Asia and founded the Timurid dynasty in the fourteenth century, can still be seen in Samarkand in Uzbekistan. The first recorded polo tournament was in 600 BC when the Turkomans beat the Persians in a public match. The Persians and the Mogul conquerors spread the game across the eastern world where it fast became the port of choice of the ruling elite.

Modern roots of polo date back to the mid19th century. An Irishman, Captain John Watson, of the British Cavalry 13th Hussars created the first set of written rules for playing polo. The first club was established in the town of Silchar in Assam, India in 1834. Forty years later, in 1874, the Hurlingham rules were created and marks the moment when the modern sport became standardized and codified. It was also featured at the Olympic games from 1900 through 1936.

The game of polo is remarkably straight forward. Two teams, each team consisting of 4 players and their mounts, attempt to score goals by driving a small white ball into the opposing team’s goal using a long-handled mallet ranging in size from 48 to 54

inches (based on the height of the pony). The team with more goals at the end of the match is declared winner.

Polo is played in four to eight 7.5-minute periods called chukkers. Positions are f luid — players are expected to transition around the field, a 160-yard-wide by 300-yard-long area and fi ll in where needed. However, the most offensively minded player is typically positioned highest up in the stack and focused on scoring.

Polo boasts an unrivalled intensity. The sport requires considerable physiological strength, huge muscular and cardiovascular endurance. Core strength is key to power the strokes as a player leans over the side of their 16-hand high, 1,100-pound mount at top speed in a race for a loose ball against an opponent. Mental resilience is required to not pull out when players urge their mounts directly towards the same ball at speeds in excess of 30 miles per hour.

Polo uses a handicap system delineated in “goals” to rank players ranging from -2 up to 10. Teams are built to have matching handicaps. Most professionals are rated 4 goals and above.

A player 7 goals or higher is among the top players of the world.

This handicap system has the convenience of also allowing experienced polo players and teams to be matched against those just getting into the sport. See you on the field. ■

Polo boasts an unrivalled intensity.

Two Trees Farm

Bridgehampton

The iconic Two Trees Farm, famed for hosting the Mercedes Benz Polo Challenge, is one of the finest world-class equestrian properties in the country. $17,995,000 | 65± Acres | 3 Horse Barns | 88 Stalls | 2 Indoor Riding Arenas Renovated Historic Farmhouse | Staff Quarters | Paddocks and Polo Fields TwoTreesEstates.com

Christopher J. Burnside Licensed Associate Real Estate Broker

631.537.4320 c: 516.521.6007 cburnside@bhsusa.com

GURNEY’S STAR ISL AND IS AN EXCITING NEW VENUE THAT SHOULD BE ON EVERY HAMPTONS LUXURY SEEKER’S BUCKET LIST. RIGHT: SHOWFISH, GURNEY’S STAR ISL AND’S SEAFOOD RESTAURANT

HO SPITA LIT Y

STAR ISLAND RESORT A New Standard to Beat in the Hamptons Hillar y Davis PHOTOGR APHY Gurney’s Resor ts WRITTEN BY

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CHEF JEREMY BLUTSTEIN BELIEVES IN MICHELINLEVEL CUISINE AND HAS BEEN CALLED A ROCK STAR ALCHEMIST OF LOCAL PRODUCE

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HO SPITA LIT Y

SLIP INTO THE UNHURRIED LIFEST YLE OF STAR ISL AND IN ROOMS THAT REFLECT L AID BACK LUXURY.

G

urney’s has done it again, reinventing the Hamptons experience with their uber-chic oceanside resort, Gurney’s Montauk, now seamlessly and effortlessly linking in minutes to its brand-new Gurney’s Star Island Resort on Lake Montauk.

When you arrive at the Star Island complex, look for the lighthouse. Open its door. Enter the tranquil interior and you will immediately detect an elevated level of hospitality, significantly raising the bar because the ambiance, service and quality are unique and like no other in the Hamptons.

Expect the best.

Book your room with a balcony facing the marina so you can admire admire the yachts at dock. Rooms reflect laid back luxury, so you’ll be able to unplug from everyday life and slip into the unhurried lifestyle of Star Island.

If you’re feeling energetic, sign up for sport fishing charters leaving right from the dock, a catamaran charter or learn how to sail in their 28-foot Catalinas.

At the resort, wine and dine at Showfish, their signature restaurant, helmed by one of the best chefs on Long Island, Jeremy Blutstein, formerly of Almond Restaurant. A firm believer in Michelin-level cuisine served casually and celebrating only the best seasonal produce, he is a magnet for day fishers bringing in scallops, monkfish, black bass, tile fish and more to his dock, farmers and foragers traveling out to Montauk to offer him wild mushrooms and ramps, then taking it all in and creating an innovative menu.

Peruse his lobster tank. He’s equally happy to prepare the simplest lobster, just for you, with a bottle of the best champagne in the house. Most, if not all, on his menu is sourced within a 20-mile radius. A rock star alchemist of local produce, his reputation is for cutting-edge cuisine and is worth seeking out.

After dinner, find your way to the outdoor fire pits set near the boat slips in the marina. Take in the evening air, light a cigar, sip a brandy. You might spy a celebrity or supermodel swaying to live music by the outdoor bar. You may stay up past your bedtime.

The marina the hotel and restaurants face is the biggest in the Hamptons, accommodating superyachts up

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to 220-feet in size, making it an enchanting safe haven for weekend mooring within easy cruising distance of New York City, avoiding city docks and curious onlookers. Yachting Magazine named it “One of the Top Ten Marina Destinations in North America, Mexico and the Bahamas.” Montauk provides easy access to Long Island Sound, the ability to scoot over to Nantucket, Block Island Newport or down to the city in no time. If you don’t have a yacht, Star Island can connect you with a seaplane and yacht service to those destinations.

If you have a yacht or are chartering one, you can take a slip in the marina or pick up a mooring and skiff in to the docks of the resort for supplies, take out gourmet food or enjoy an evening in town.

Accessing Montauk and Gurney’s Star Island by other means is straightforward. Arriving via air? Montauk Airport is a few minutes away, so you can skip the traffic, hop on a Blade chopper in the city, and arrive in only 45 minutes. If you’re braving the infamous traffic of the Long Island Expressway, travel past the Hamptons and be sure to take the time to check out the wineries on your way back to New York City.

Take a day to shuttle over to Gurney’s Montauk to experience their salt-water spa services offered during the summer season under a tent on the beach. Luxuriate in their ocean-fed salt water pool or relax on a cabana-shaded kingsize day bed shaded by umbrellas and cabanas on the sand with comprehensive food and beverage list at your fingertips or saunter along the vast pristine beach along the Atlantic Ocean, the only sound coming from the crashing waves.

Gurney’s Star Island should be on every Hamptons luxury seeker’s bucket list. This is an exciting new venue setting itself to possibly become one of the most in-demand resorts and restaurants in The End. Prediction: No Vacancy. ■

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A Gilded-Age Getaway

Summer in the Berkshires

16 Blant yre Road

L e n o x , M A 0 1 24 0

+1 4 1 3 6 3 7 3 5 5 6

+1 8 4 4 8 8 1 0 1 0 4

w w w. b l a n t y r e . c o m

Proposed Rendering

serenity on the water Located in a secluded enclave with the ability to build up to 9,500 +/- sq. ft. on a lushly landscaped acre. At grade elevation you can achieve gracious first floor living, amazing water views, rooftop deck and dock, or keep the charming renovated cottage as is.

Water Mill South | Exclusive $7,995,000 | 199GeorgianLane.com

THE TERRY COHEN TEAM Terry S. Cohen

Licensed Real Estate Salesperson

c: (631) 804-6100 | TCohen@Saunders.com

Jon Vaccari

Licensed Real Estate Salesperson

c: (504) 914-1239 | JVaccari@Saunders.com

Ranked in the Top One Percent of Agents Nationwide

Danielle Lohr

Licensed Real Estate Salesperson

c: (419) 340-4154 | DLohr@Saunders.com

TerryCohenRealEstate.com 2287

montauk highway, bridgehampton

“Saunders, A Higher Form of Realty,� is registered in the U.S. Patent and Trademark Office.

Q&A

L ENDER SP OTLIGHT

MIKE JAYNES, PRESIDENT OF HALL STRUCTURED FINANCE SAYS HSF IS SLATED TO LEND OUT $400 MILLION IN 2019 Daniel Hilper t PHOTOGR APHY BY HALL Group WRITTEN BY

RENDERING OF 284-KEY, DUAL-FL AG ALOFT (144 KEYS) / ELEMENT (140 EXTENDED STAY KEYS) HOTEL IN ORL ANDO, FL

Hi g h

VO LU M E UNDER THE UMBRELLA OF DALLAS-BASED HALL GROUP, founded by Craig Hall, HALL Structured Finance (HSF) is a direct lender that focuses on providing non-recourse, fi rst lien construction loans for commercial real estate projects across the U.S. HSF was the #1 non-bank hotel construction lender in the country in 2018. HSF works to provide

alternative fi nancing solutions for high-quality projects that cannot meet their fi nancing needs through a traditional bank lending platform. Daniel Hilpert, Publisher of EQ interviewed Mike Jaynes, President of HALL Structured Finance about markets to watch, recent transactions and what’s next for HSF.

What sets Hall Structured Finance apart from other hotel lenders?

Mike Jaynes: We set ourselves apart from other lenders by offering non-recourse terms, flexible underwriting standards, fast execution and up to 75% LTC. Another differentiator is that our parent company HALL Group is a real estate developer, so we bring internal expertise in development and construction to our clients.

of real estate, financial lending, angel investing and winemaking. In fact, Craig is a New York Times best-selling author and he just published his seventh book, titled BOOM: Bridging the Opportunity Gap to Reignite Startups.

What is the overall vision of founder Craig Hall? Where does he want to take the business?

Craig Hall would like to find ways to integrate new technologies into our lending program, such as AI that can assist with due diligence. HSF is a big focus for the company. HALL Group is also involved in the ownership, management and development

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Which markets does Hall currently like—where are you comfortable investing? How do you feel about New York City with respect to the hospitality industry and other major markets such as Miami and LA? We are targeting good opportunities in all primary and strong secondary markets across the country. We provided $20 million in construction financing for an EVEN Hotel in Miami, which just recently had its grand opening, and we have also financed several hotels in submarkets surrounding LA. We have an interest in NYC, and have done loans in the past, but we haven’t found a

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L ENDER SP OTLIGHT

fit recently from a lending perspective. A lot is in the New York hotel pipeline, so it’s a market we would be cautious about.

Are there specific geographic markets you avoid?

We will look at any market, and we typically underwrite to the street corner and the submarket. It is very deal-oriented, and even within an underperforming market there can be good opportunities.

Which asset classes do you like, for example ultra-luxury or limited service?

We will most aggressively target well-flagged limited service, select service and extended stay hotels in major markets, followed by branded and soft branded full-service hotels. We will also selectively finance well-conceived boutique/independent hotels. We target hotels with multiple demand generators.

What makes you different from competitors in terms of ease of close, etc.? You are a non-recourse lender; tell us about your non-recourse feature.

We still go through the same closing process as a traditional bank, but as a small private lender and flat organization, we are more nimble and able to move more quickly in the closing process. We are primarily a construction lender, so consistent with industry standards, we do have recourse during construction, but it converts to non-recourse upon completion.

Tell us about some of your recent transactions that were noteworthy or unusual.

• For Marriott Autograph in Scottsdale, AZ [we secured] a loan totaling $53 million to finance the expansion, redevelopment, flagging and rebranding of the existing 32-room CopperWynd Resort into the boutique Autograph Scottsdale Resort.

• Hampton Inn in Kissimmee, FL just closed in early June. The loan totaling $15.5 million was secured to finance the construction of a Hampton Inn in Kissimmee, FL located just south of Orlando. The 128-key hotel is slated to open in June 2020 and is being constructed by Garry Hasselbacker and Chet Patel of Pinnacle Hospitality Group.

• For Dual-Flagged Hampton Inn & Suites and Home2Suites in Las Vegas, NV we secured a loan totaling $42 million to finance the construction of the dual-flagged hotel immediately adjacent to the Las Vegas Convention Center.

What do you see in the company’s future? Will you put out more $$ this year? What markets to you want to be more active in?

We have continued to grow over the past several years and see that continuing. We are slated to lend $400 million this year, which would be our highest volume year-to-date. We would like to do more loans in major markets in Texas, such as Dallas, Houston, Austin and San Antonio. We are also continuing to diversify product types, providing construction loans to hotel, multifamily, student housing and spec office deals across the U.S. ■

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NAPA VALLEY EMPIRE

CRAIG AND HIS WIFE K ATHRYN AT THEIR WINERY IN NAPA

C r a i g H a l l , Fo u n d e r o f HALL Group, is a man of many interests. More than 20 years ago he entered the vineyard and wine business in California with his wife Kathryn. They have risen to t he top w it h a per fec t score from Robert Parker’s Wine Advocate and in 2013 beca me t he f irst LEED Gold winery in California.

“We are very proud of that,” says Hall. “We’re very committed to the environment across our businesses and LEED certification is something we pursue at all of our new developments.”

Today the Halls have three wine brands: HALL, principally known for Cabernet Sauvignon and Sauvignon Blanc; WALT, known for Pinot Noir and Chardonnay; and BACA, their newest brand producing high quality Zinfandel.

“We actually didn’t start as amateur winemakers per se,” says Hall.

“Kathryn has been involved in the California wine industry since her family purchased a vineyard in the 1970s. When we started our own winery, we intentionally wanted to make very high-quality cabernet with grapes from the best parts of Napa Valley.”

According to Hall, the wine business is challenging and complicated. It involves farming, manufacturing, marketing and creating new innovations with technology while producing an exceptional end product. “For these reasons it’s also a very gratifying and fun business.”

In many ways winemaking has not changed for centuries. The Halls still employ gravity flow, for example, which might sound high tech but is actually the way wine was made 5,000 years ago. “The theory behind gravity flow is that you do not use pumping that would hurt the skins of the grapes.

We wanted to make the wine in the most natural way possible,” he explains.

On the other hand, the Halls choose to use new technology when it enables them to produce a better product. “We used to have people sort the grapes before they would go into the fermentation tank to be processed.

Today, we use optical sorting machines that — while expensive — are much better than humans at the sorting process,” says Hall. “Other high-quality wineries like ours are adopting this new technology as well.”

The Halls have also distinguished themselves from other vineyards in Napa by incorporating art pieces from their impressive collection throughout the vineyard experience. “Years ago, I started using art in some of our commercial properties because I thought it was a great opportunity to share my love of art with others and have them experience the joys of the artwork I had collected,” explains Hall. “Over time, I’ve found that it is really appreciated by visitors at the wineries and there is no question that it helps enhance the experience of enjoying a great glass of wine to be in the presence of great art against the beautiful Napa backdrop.”

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FA SHION

Dressing well doesn’t have to end when your toes hit the sand.

This summer, follow a few style tenets (i.e., proper fit, good fabric and correct proportions) and it will serve as your lighthouse in a sometimes stormy sea of menswear.

Summer isn’t quite summer without swimwear. The category has exploded over the past couple of years. Options are endless and finding the right fit for your body can mean the difference between Alain Delon in Purple Moon or John Candy à la Summer Rental.

A 6" to 7" inseam will suit most gentlemen. 4" to 5" inseams can be worn by the lucky few with the legs of Cristiano Ronaldo.

For the taller guys, try the 8" to 9" inseam. Careful, any longer than 9" and you’re dancing with the board short devil.

Jon Ruti, Owner of Rivay

These Kuta solid swim trunks from (another) classic French brand, Hartford, come in a variety of understated, solid colors. Keep it simple and start with a solid pair. Once you find the optimal inseam, go crazy and add print and pattern to the rotation.

>

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Staying in town for lunch? Lose the trunks and change into a pair of our tailored Isle Italian cotton shorts or our Rèmy linen trousers. Keep the t-shirt, cover the toes with an espadrille from Soludos or Manebi and Nick & Toni’s is your uncle.

Assuming you don’t succumb to the afternoon nap, make your way back to the beach for sunset. But careful, a beach sunset presents the all too familiar sartorial challenge—summertime layering. While a sunset brings with it beautiful colors, it can also bring a chill that’ll spoil any bonfire. Sure, a sweatshirt will get the job done, but if you’re wearing tailored shorts or linen trousers, that calls for a more elevated option. Our Antibes Awning stripe popover or Santos Indigo Hooded shirt has just the right amount of bohemian Ditch Plains circa 1972 to keep you (or companion) warm into the night.

And let’s face it—wrapping yourself in luxurious Japanese indigo is always a good idea. ■

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When the time comes to run into town for a resupply of ordinance friendly beverages, those trunks are going to need a friend. Yes, you should be wearing a shirt the moment your feet go from sand to pavement. Opt for our slub t-shirt in a range of custom, sun-faded colors. Slub cotton has a luxurious texture that’ll let the summer breeze pass through with ease.

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This summertime style should get you through Labor Day with ease. Don’t worry about sleepwear recommendations, you can sleep come fall.

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Photography courtesy of Jon Ruti

WRITTEN BY

T W O W E S T WAT E R S T SAG HARBOR

DE V ELOPMEN T CALIFORNIA NANOSYSTEMS INSTITUTE AT UCL A, A HUB OF INTERDISCIPLINARY RESEARCH AND EDUCATION, PROVIDING A CUTTING-EDGE R&D INFRASTRUCTURE, ENABLING RESEARCHERS AND STARTUPS TO DISCOVER, DEVELOP, AND IMPLEMENT TRANSFORMATIVE TECH.

WRITTEN BY

Patricia Kirk

LAâ&#x20AC;&#x2122;S NEW BIOSCIENCE SCENE DEVELOPERS CREATING LAB SPACE FOR BIOSCIENCE START-UPS TO GROW LOCALLY

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L

Photo Credit: Brad Feinknopf/CSNI

os Angeles has been losing its life scientists to San Francisco and San Diego for decades. Now the region’s economic leaders, bioscience stakeholders and real estate investors are joining forces to grow the life science and biotechnology sectors locally.

Home to prestigious research institutions, Los Angeles has a large community of bioscience startups, but they have nowhere to grow. As a result, the region suffers from “brain drain,” with many promising scientists moving to life science clusters in San Francisco and San Diego, says Allan Glass, a principal at HATCHspaces® LLC. Glass and partner Howard Kozlof f are joining efforts of local economic and government leaders and other stakeholders to stop this exodus by providing purpose-built space for life science companies to expand in the Los Angeles marketplace.

Glass notes that the Los Angeles life science real estate market includes startups currently in non-profit research incubators and on-campus research facilities at the University of California Los A ngeles ( UCLA); Universit y of Southern California (USC ), California Institute of Technolog y; California State University, Los Angeles and Harbor-UCLA Medical Center. Glass adds that, life science companies located elsewhere are also attracted to the Los Angeles region because it has one of the most ethnically diverse populations in the nation, which is of utmost importance for clinical drug trials.

The Los Angeles County Economic Development Corporation reports that the region’s growing bioscience industry, which includes 2,448 companies, generates $ 20.5 billion annually and adds 162,000 jobs and $40.3 billion in economic activity to the local economy.

The report also notes that the region’s 600 life science research facilities receive $1 billion yearly in funding from the National Institutes of Health.

Kozloff and Glass have been real estate developers for about two decades, but their fi rst foray into the life science market is HATCHlabs @ LA Bioscience H U B , a n adapt ive reu se project that repositioned an 80-year-old, 22,000-square-foot warehouse to purpose-built lab space. The project is lo-

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cated at 5370 Alhambra Avenue in East LA’s El Sereno neighborhood, an area branded by the city and county as the LA Bioscience HUB. This emerging eastside cluster is anchored by LAC+USC Medical Center and the USC Health Sciences Campus on the west and Grifols Biologicals, a multinational pharmaceutical company and California State University, Los Angeles (Cal- State, LA) to the east.

Another new life science incubator, the Rong xiang Xu Bioscience Innovation Center, which was funded in part by a grant from LA county, is scheduled to open the end of this year on the CalState, LA campus.

We are providing a ‘warm shell’ that tenants can customize to their own needs” — Alla n G lass , HATCH spaces

FLEXIBLE SPACE FOR LIFE SCIENCE NEEDS A former furniture warehouse, HATCHlabs is the first life science, adaptive reuse project to rise from the industrial district located between these institutions. It provides a plug & play setup that enables tenants to get up and running in 3.5 months, when it usually takes 12–14 months to build-out lab space, says Glass, noting that all systems have been built to city fire and safety code standards for all levels of lab space, including the creation of f ire control zones within the suites, so tenants would typically only need over-thecounter approvals to begin TI work.

“We are providing a ‘warm shell ’ that tenants can customize to their own needs,” he explains. Space is built out as close to f inished as possible, while remaining flexible enough to accommodate the wide variety of life science needs.

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The building contains infrastructure required for wet lab a nd clea nroom space, including a new electrical system that is heavier than normal for a building of this size, says Glass. The space can be divided or combined to create variably sized space and adapted to any type of life science research use, as well as biotech, medical device or agriculture testing. Each suite also has separately metered electrical service and HVAC system, so tenants can control their own electrical usage and internal environment.

As f irst movers, the biggest challenge for the developers was f inding f inancing, continues Glass, explaining that life science startups can’t commit to space until they obtain funding and are assured when space can be delivered.

Also, without comparable real estate in the marketplace, commercial banks and institutional lenders found it difficult to quantify the financial aspects of the project. “We couldn’t rely on the local market, so we triangulated our proposed life science rents to fall below market rents in San Francisco and San Diego and within a similar cost range for companies using two to four benches in a local incubator,” he says.

Currently, incubators’ tenants are charged per bench. By the time a startup is ready for a HATCHlabs facility they have typically grown to need four to six benches. Rents at HATCHlabs are approximately 20— 40 percent less than in San Francisco and San Diego, Glass contends, noting that HATCHlabs provides startups coming out of incubators room to scale up at a price comparable to what they’re already paying in a local incubator.

Unable to secure funding through conventional lenders, the developers engaged Equicap, a NYC-based debt and equity investment banking intermediary. Equicap’s managing director Daniel Hilpert arranged the construction loan through a private lending source. Hilpert said, “Our lender MB2 was the perfect fit for this project. They understood the business plan and executed for the client.”

R e c e n t l y c o m p l e t e d , H AT C H labs is 75 percent leased. Its fi rst tenant, TCRCure Biopharma, a cancer research f irm, now occupies three lab suites, or about 3,500 square feet, but has leased a fourth contiguous suite to provide room for expansion.

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ADAPTIVE REUSE CHALLENGES Architect Brian Spence, a principal in the Los Angeles studio of New Yorkbased BAM Architecture Studio, says the biggest challenges to adaptive reuse involved structural and zoning issues.

If a new building is constructed today, for example, current zoning code would require an additional f ive-foot setback along the entire front of the building.

HATCHlabs was comprised of two buildings on two adjacent lots. Additionally, the two lots’ addresses needed to be formally combined by the city.

Excavation f ur ther revea led hidden conditions, including undersized column footings that had to be made seismically sound.

The building had “good bones,” but needed a new façade. To avoid moving the front of the building back to comply with the setback requirements the front wall was retained intact and tied into the new structure with a new roof. The main building, which has bow-arched trusses that provide open space without columns, was attached to a metal shed with a different roof system. While this was technically dif f icult, it was less costly than the alternative, and no rentable space was lost, he notes.

Spence is expecting similar issues

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and hidden conditions at HATCHlabs X, the 11,000-square-foot building next door, which Glass and Kozloff acquired a nd pla n to reposition a s lab - of f ice co-working space.

The developer duo were deliberate in their ef forts to allow HATCHlabs to assimilate into the existing East LA neighborhood culture, so they hired muralist Alex Poli, who goes by street

We want to enhance economic activity by creating opportunities with local businesses” —Allan Glass

artist name of Man One, to paint a mural on the facade of the building that reflects what’s happening inside: symbols for the four “happy chemicals” produced in the human body—dopamine, oxytocin, serotonin and endorphins— and ref lects that back upon the community.

Poli’s work also includes a portrait of local bioscience hero Willie Zuniga,

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an East LA native who is now president of Grifols Biologicals. Zuniga attended the neighborhood’s local schools, i nclud i ng Wi l son H igh S chool a nd Cal-State LA. He was instrumental in launching a ver y successf ul summer STEM (science, technology, engineering a nd math) prog ra m at the loca l high school and established a summer prog ram for children to teach them about medical careers beyond patient care, Glass says.

CREATING SCATTERED CLUSTERS The DNA of L os A ng ele s’ l i fe sc ience/biotech sector is dif ferent from San Diego’s campus-style cluster, with a network of small clusters scattered throughout the Los Angeles region and scientists collaborating through technology. The various types of bioscience compa n ie s — i nclud i ng me d ic a l re search, pharmaceutical, medical device, biotechnology, bioengineering and scientif ic testing—tend to cluster nearby anchors with similar purposes.

For example, Glass notes, companies conducting clinical trials may locate nearby research hospitals like The USC Norris Cancer Center or City of Hope, while biotech startups are locating in biotechnolog y hubs adjacent to t he

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Photo Credit: Brad Feinknopf

THE L A BIOSCIENCE HUB IN EL SERENO IS TAKING AN ORGANIC APPROACH TO BLENDING IN WITH THE EXISTING COMMUNIT Y. BOTH THE INTERIOR AND EXTERIOR OF 5370 ALHAMBRA AVENUE INCLUDE ART BY MURALIST ALEX POLI.

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new $ 63-million, 78,000-square-foot, LA BioMed incubator at Harbor UCLA Medica l Center in Tor ra nce, which opened earlier this year, or the California NanoSystems Institute at UCLA, an innovative, multidisciplinary research center focused on translating discoveries into knowledge-driven commercial enterprises.

The se sma l ler L os A ng ele s - a re a clusters are taking a different approach to providing the amenity-rich environment that today’s bioscience community expects. The LA Bioscience HUB in El Sereno, for example, is taking an organic approach, reaching out to local businesses to grow amenities around life science facilities. A popular taco shop and brewery are located nearby HATCHlabs, and there is a local coffeehouse across the street that both serves as a community hub and operates an art and literary foundation for local residents.

“We don’t want to displace what’s already there, we want to enhance economic activity by creating collaborative opportunities with local businesses,” Glass says, noting that this approach is important to preventing gentrif ication of the neighborhood. The jobs being created will of fer opportunities for a range of educational backgrounds, from community colleges to PhDs. While the region’s bioscience industry lags behind San Francisco and San Diego, there is a big push to grow this sector locally, and indications of positive outcomes are emerging. PwC and CB Insights, for example, reported that the investment in bioscience companies in Los Angeles and Orange counties experienced a 97 percent surge in Q1 2018 alone, to $1.9 billion.

G oi ng for wa rd , Gla s s a nd Koz lof f are focused on f illing the region’s u n me t ne e d for l i fe s c ie nc e spa c e .

T he y r e c e nt ly c lo s e d e s c r ow on a 1 2 ,0 0 0 - s q u a r e - fo ot me d ic a l of f ic e bu i ld i n g i n t he We s t wo o d V i l l a g e neighborhood nearby the UCLA Medical Campus, which they plan to convert to of f ice and lab space. And over the next couple months, they will close escrow on two more industrial buildings, totaling more than 190,000 square feet, nearby Amgen’s headquarters in Thousand Oaks, continuing to move towards their goal. ■

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Alexandria Center Accelerating New York’s Life Science Cluster OPENING IN MID-2017, THE ALEXANDRIA CENTER FOR LIFE SCIENCE, DEVELOPED

BY ALEXANDRIA REAL ESTATE EQUITIES,

is positioning New York City for a leadership position in the life science market. This relatively new cluster is currently ranked seventh nationally based on size of laboratory inventory, size and long-term growth in life science employment, concentration of key scientists and size of funding resources, according to a CBRE report. Elements driving this change in momentum are strong municipal support, a major concentration of life science talent and more than 1.5 million square feet of lab space under construction.

More patents are coming out of the New York life science cluster than San Francisco and Boston combined, says John H. Cunningham, executive vice president and New York City regional market director at Alexandria Real Estate Equities, who notes that both U.S. and European life science companies are establishing beachheads in the city.

Strategically located along Manhattan’s East Side Medical Corridor at 29th St. and 1st Ave., Alexandria Center is capitalizing on its proximity to top academic-medical institutions and major hospitals to recruit life science and biotechnology firms to the cluster.

With the addition of the 550,000 square foot North Tower to the campus’ two existing 15-story towers, the Alexandria Center will provide approximately 1.3 million square feet of first-rate office and laboratory space designed to foster cross-institutional collaboration.

The completed East and West Towers are both LEED Gold and Platinum-level and Wired Certified, demonstrating

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Alexandria’s commitment to providing sustainable campuses on the cutting edge of technology. The campus features a full range of amenities needed by life science companies to attract talent, including a state-of-the-art digital conference center and event space; two culinary establishments; an award-winning urban farm; a fully integrated fitness center and a waterfront park and esplanade.

This cluster is attracting unique business units of international pharma companies and serial entrepreneurs, but is also nurturing start-ups, seedstage academic spin-outs and growing early-stage companies with establishment of Alexandria LaunchLabs, a life science start-up incubator, and the Alexandria Seed Capital Platform, a funding model catalyzing seed-stage life science investment. Current tenants include multinational pharmaceutical companies, including Eli Lilly and Company, Pfizer Inc. and Roche, to early-stage companies spinning out of the Accelerator Corporation, which provides early-stage biotech companies business, scientific and venture capital support.

Alexandria Real Estate Equities also has acquired two nearby properties, the 593,000-square-foot Pfizer building at 219 East 42nd St. and a 177,000-sq.ft. industrial building in Long Island City, which are being redeveloped for life science and biotech tenants.

“We’re building an ecosystem that will allow growing companies to remain within our platform,” Cunningham says. “People want to stay here with peers because it helps them grow and flourish.”

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565

BROOME AS SOPHISTICATED AND DISTINCTIVE AS SOHO ITSELF

O

WRITTEN BY

Jeffrey Steele

Renderings courtesy of 565 Broome

ver time, the neighborhood of SoHo has evolved into a favorite of native Manhattanites and visitors alike.

Starting as an enclave of modern artists, it’s grown into a destination for fi ne shopping, refi ned dining and top-f light enter tainment, while losing none of its ar tistic sensibilities. The logical next step in SoHo’s evolution is now complete, with the unveiling of 565 Broome SoHo. This cuttingedge high-rise is designed to give residents a soothing escape from the city, while placing them at the doorstep of all that SoHo offers.

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and gracefully lifting vehicles from street level to the higher reaches of a private climate- and humidity-controlled garage.

Each space is not only expansive enough to accommodate SUVs, but also features electric vehicle charging stations. Automated technology enables owners to use a smartphone app to remotely request their vehicles, with an average arrival time of a scant 210 seconds.

HARMONY AND SERENITY The 115 residences of 565 Broome range from studios to four-bedroom homes, all bearing the graceful space- and view-maximizing imprimatur of RDAI. The celebrated fi rm incorporated ultra-transparent glass in the windows and neutral tones as a means of conveying harmony, serenity and expansiveness. The design is complemented by the luxe amenity offerings, which extend over 17,000 square feet and deliver an exclusive, calming retreat. Among the wellness amenities are a fi tness center, a heated 55-foot indoor swimming pool, ch a n g i n g room s , s te a m room s a nd s a u na .

A meticulously groomed outdoor terrace, interior landscaped lounge with soaring 92-foothigh ceiling, live green wall, library and wet bar and children’s playroom are among additional amenities.

A private gated driveway provides entrance to a covered porte-cochere. Even the Renzo Piano-designed parking garage, situated above street level and fully enclosed in glass, serves up drama and excitement.

Visible f rom the street, the automated parking system is on full, fascinating display, its unique mechanisms smoothly

IMPECCABLE INTERIORS Having entrusted the exterior design of 565 Broome to RPBW, developer Bizzi & Partners Development turned to RDAI for the interiors of the condominium structure. The result of this collaboration between two powerful international architectural forces is a tower that derives its beauty from a restrained assemblage of basic elements including glass, stone and white oak. In this sense, the building pays homage to the larger surrounding neighborhood of SoHo, known for the beautiful simplicity of its cast iron architectural elements.

The clean, uncomplicated aesthetic is matched by the approach of the RPBW craftspeople called upon to build 565 Broome. The studio artisans are known for their dedication to detail and their attention to a quality construction methodology.

Nowhere is the blend of design, materials and craft on more stunning display than in the penthouses, which seamlessly combine indoor and outdoor spaces to optimize their stunning 360-degree views of the Manhattan skyline and Hudson River.

It’s f itting that the artfully designed building is placed in a nook of Manhattan known for art, and appropriate that a structure this innovative would have an address in an enclave respected for innovation. In every sense, 565 Broome SoHo is a unique and fi tting addition to the neighborhood it will call home, a community unlike any other. ■

CLOCKWISE: THE NEW WHITNEY MUSEUM NYC, NEW PARLIAMENT HOUSE OF MALTA, THE SHARD IN LONDON, RENZO PIANO

Photo Credit: Jules Antonio @flickr.com

Photo Credit: Festival della Scienza @flickr.com

DESIGN ED BY I NTER NATIONA LLY ACCLA I M ED firm Renzo Piano Building Workshop (RPBW), 565 Broome is a gleaming 30-story luxury condominium with interiors by Rena Dumas Architecturer Interieure of Paris (RDAI). This building represents the New York City debut of Renzo Piano, the Pritzker Prize-winning architectural visionary Time Magazine has venerated as one of the world’s top 100 most influential individuals.

This image and above: Shutterstock.

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Sophisticated Products and Services for High-Net-Worth Investors Jonathan S. Peris Director/Investments

www.PerisSupper.com (212) 328-2519 jonathan.peris@stifel.com

3 Bryant Park, 3rd & 4th Floor | 1095 Avenue of the Americas New York, New York 10036 Stifel, Nicolaus & Company, Incorporated Member SIPC & NYSE | www.stifel.com

WA T C H C A S E PENTHOUSE 15 CHURCH STREET PH418

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Sponsor makes no representation or warranties except as may be set forth in the Offering Plan. The complete offering terms are in an offering plan available from the Sponsor. File # CD-12-0035.

Sponsor Name: Sag Development Partners, LLC, c/o Cape Advisors, Inc. 483 Broadway, 5th Floor, New York, NY 10013. Equal Housing Opportunity.

YACH TING

THE ULTIMATE

EAST END AND NEW ENGLAND EXPERIENCE Montauk Lighthouse Photo Credit: lohit v, creativecommons.org

Stefanie Tabacow, YachtLife

S WRITTEN BY

ummer is here, which for m a n y N e w Yo r k e r s a n d Bostonians means prepari n g for t h e i r H a mpt o n s or N a nt u c ke t b e a c h v a cat ions. Just ment ion i ng The Hamptons or Nantucket conjures thoughts of Americana, pristine coastline, lighthouses, and celebrities and titans of industry rubbing shoulders at summer time galas. But no matter how many times you have been to these summer retreats, you haven’t truly experienced this area until you have explored it by water on your own private yacht.

Ya c h t i n g i n N e w E n g l a n d a n d throughout the Hamptons is unlike anywhere else in the world: golden sand beaches and lighthouses; upscale boutiques in picture perfect towns; and stunning mansions on imposing cliffs.

Sailing through this region, you will soon see that this coastline has more to offer than purely natural beauty — it possesses a wealth of history and culture dating back to the American colonial past and set against some of the most expensive and desirable real estate in the United States.

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DAY 1

The following is a sample 7-day itinerary bringing you and your guests to some of the most well-known sites that you’ ll be sure to enjoy.

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SAG HARBOR

Embark on your yacht in Sag Harbor and take a short cruise to Shelter Island where a tender can rendezvous with your yacht to bring you onshore for lunch at Sunset Beach. This East End staple feels more like St. Tropez than Long Island with it’s yellow and white parasols and Mediterannean vibe. After a relaxing post-lunch swim or a jet ski ride, take a sunset cruise back to Sag Harbor where you can dine aboard your yacht or head into town and have farm-to-table fare at Wölffer Kitchen.

DAY 2

MONTAUK

After breakfast onboard, head to the North Fork of Long Island, home to dozens of vineyards and charming small towns.

Make sure to pay a visit to the lavender fields at Lavender by the Bay before heading into town for lunch at the Frisky Oyster in Greenport. After embarking on your yacht, head to the hip surf town of Montauk. Cruise to the famous Montauk Lighthouse and then drop anchor at Navy Beach where you can take in the breathtaking sunset before heading back to Montauk for dinner at the Crow’s Nest where you’ll have some of the freshest local food with a lake front view.

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YACH TING

Essential Stops

DAY 3

BLOCK ISLAND

Known for its protected beaches, Block Island was named by the Nature Conservancy as one of the sites in the list of “last great places” in the Western Hemisphere. Visit the Mohegan Bluffs, and take the staircase to the bottom of the clay cliffs, and make sure to try a bowl of New England clam chowder at the National Hotel.

Gurney’s Montauk Resort (Montauk)

Is situated on Montauk’s most pristine stretch of oceanfront real estate, this is a Hamptons icon and the only year-round resort in Montauk.

American Hotel (Sag Harbor) Was built

DAY 4

NANTUCKET

From Block Island take a morning cruise to Nantucket, made famous by the Kennedy family for their family compound in Hyannis Port. Originally a whaling port, Nantucket has been named a National Historic District and little has changed since the 17th century with its old fashioned lamps still lining the streets. Nantucket is better known for its pristine dune-backed beaches, cobblestone streets and is famous for its 4th of July fireworks. Spend the day exploring this unique New England island.

DAY 5

MARTHA’S VINEYARD

in 1846 at the height of the Whaling era.

It is an elegant and professionally run establishment with an inimitable edge and character.

National Hotel (Block Island) Is the flagship victorian hotel on Block Island located in the center of downtown in Old Harbor.

Gurney’s Newport Resort (Newport) Is situated on Goat Island and surrounded by Narragansett Bay. Offering the seclusion of a private island yet close to downtown Newport.

R E S TA U R A N T S

From Nantucket, take a short cruise to the storied island of Martha’s Vineyard, a summertime favorite of sitting US presidents. Martha’s Vineyard boasts the oldest working carousel in the country, and if traveling with children, you might consider taking a tour of the Farm Institute, where you’ll see livestock and can explore lush vegetable and flower gardens. And no trip to the Vineyard is complete without some Murdick’s fudge. Have dinner in town before heading back to your yacht for a well-deserved night’s rest.

DAY 6

NEWPORT

Sunset Beach (Shelter Island) With a French Riviera-meets-coastal Italian menu this is one of the summer hotspots to enjoy an afternoon this summer.

The Crow’s Nest (Montauk) From fresh whipped ricotta to blue crab claw tagliatelle, this rustic mediterranean restaurant is well worth a visit for the food and view of Montauk Harbour.

Cru (Nantucket) With an envious waterfront location in the heart of Nantucket harbor, Cru offers the ideal backdrop any time of day; enjoy a glass of champagne, indulge in caviar and oysters or sip on a glass of rosé at sunset.

L’Etoile (Martha’s Vineyard) A vibrant,

Wake up to breakfast aboard while you take a leisurely cruise to the yachting capital of the US — Newport, Rhode Island. Home to the prestigious New York Yacht Club and some of the nation’s most impressive and historic mansions, this quintessential New England town is also known for its museums and art and jazz festivals. In Newport you will be able to stroll down the famous Cliff Walk and pay a visit to The Breakers, the former summer cottage of the Vanderbilt family. If admiring the mansions is not enough, you will also have the opportunity to dine at the historic Castle Inn, which was built in 1875.

DAY 7

modern restaurant located in a restored historic whaling captain’s house with an inventive, fresh, and seasonally-driven menu.

EVENTS 4th of July (Sag Harbor) The oldest

continuous 4th of July celebration in the country. It is certainly the place to be and see the majestic firework shows.

Newport Jazz Festival (Newport) One

SAG HARBOR

After a breakfast in Newport town, take a restful cruise back to the Hamptons with lunch onboard. This morning cruise will get you back into Sag Harbor just in time for a late lunch in town followed by a lively dinner at Le Bilboquet restaurant overlooking the marina. ■ This one-week charter brings you to some of the most iconic New England towns on a journey covering just over 270 nautical miles. It’s truly an experience not to be missed and will make for lifelong memories for you and your guests. Enjoy this historic part of the world as it was meant to be seen — by the water.

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HOTELS

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of the must-attend jazz festivals in the country held every summer in Newport, RI. This year, it will happen on August 2nd till August 4th.

Hamptons Polo (Bridgehampton) The

most exclusive polo event in the Hamptons with only 500 tickets available will be held on June 29 th and July 6th.

Nantucket Film Festival (Nantucket) Packed with celebrities, the film festival focuses on screenwriting and is held June 19 th to June 24th.

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YACH TING

VQ58 T-Top

VANQUISH YACHT’S

WRITTEN BY

Renderings courtesy of Guido de Groot

EFFORTLESS COMFORT Daniel Hilper t

W

ith ultimate comfort, ideally suited for longer trips with larger groups, the brand new Vanquish VQ 58 has all the ingredients of a true driver’s boat. Comfort is nothing without space— the foredeck, aft deck and various shaded areas provide luxury seating for 23 passengers on comfortable, newly designed sofas and sunbeds.

The interior of the VQ58 is highly customizable.

Clients can choose between two locations for a garage storing watersport toys or the new Vanqraft VQ11 water scooter. The Va nqu i sh ’ bu i lders designed a f lexible 58-foot hull with three layouts (open, wheelhouse and T-top).

Weighing only 19 tons, the VQ58 has excellent maneuverability and acceleration with top speeds of over 50 knots. An hydraulic sub marine anchor,

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designed to f it within the lines of the underwater hull, ultimately conceals the chain and winch while at anchor.

The yacht feat u re s t w i n 600 hp Cu m m i ns engines as standard and can optionally be equipped with twin Volvo IPS950 engines. Both systems are delivered with joystick controls. Buyers looking for more turn speed can opt for two twin MAN V8 1200 hp engines with surface drive propulsion. ■

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equic apmag.com

YACH TING

THE VANQUISH VQ58 HARDTOP IS THE FIRST MODEL IN THE NEW VQ58 SERIES. BUILT FOR AN OWNER WHO WISHED TO BLEND KEYNOTE ELEMENTS FROM THREE OF OUR DRIVERâ&#x20AC;&#x2122;S BOATS.

SPECS

VQ58 Open

VQ58 Wheelhouse

LENGTH OVERALL

17.25 m / 56.6 ft BEAM

5.05 m / 16,5 ft DRAUGHT

0.9 m / 2.95 ft (depending on engine choice) DIESEL ENGINES

2 x 600 hp Cummings Zeus Pods, 2 x Volvo IPS 950 or 2 x 1200 hp MAN with surface drives FUEL CAPACIT Y

1500 liters / 400 US Gallons FRESH WATER CAPACIT Y

400 liters / 105 US Gallons WASTE WATER SYSTEM

70 liters / 19 US Gallons SPEED

VQ58 T-Top

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50+ knots (depending on engine choice)

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55

YACH TING

YACH T

ETIQUETTE WRITTEN BY

Stefanie Tabacow, YachtLife

Whether it’s your f irst time chartering a yacht, you’re a yacht af icionado, or a guest aboard someone else’s yacht — we all can agree that good etiquette is appreciated by everyone, and will make for a better yachting experience for all.

YachtLife.com

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1.

Preparing for your charter

W H AT T O B R I N G • You’re on a yacht, so don’t forget your swimsuit and sunglasses. Sun dresses and sarongs are advisable for women, while lightweight pants, shirts and sweaters are great for all passengers.

• Pack light-soled shoes, flip-flops or just go barefoot — so much time is spent in the water or on the sand.

• Nannies: don’t assume that the crew will be your nanny. Bring childcare with you if you would like have someone else look after your children.

W H AT N O T T O B R I N G • There is sunscreen onboard, but if you like a particular brand, bring it.

Avoid sunscreens with oil as those can stain the sunbed cushions and teak decks.

• Do not bring high heels and hard-soled shoes as these damage the yacht decks.

• Bed linens, blankets, and towels are all provided onboard.

• Glassware and flatware are also provided onboard.

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YACH TING

2.

Collaborating with captain and crew

• The primary responsibility of captain and crew is safety.

Once aboard, there will be a briefing about lifejackets, liferafts, yacht layout, crew introductions and other specific safety information.

• Heed your captain’s advice on the itinerary, transit times, and places to visit — there’s no point in trying to travel too far and not enjoying the journey.

• Let your captain know if you are inviting guests so he may order extra provisions and avoid shortage of food or drink.

• Avoid entering the crew quarters without explicit verbal permission.

• The galley (kitchen) is considered crew workspace — ask the chef before entering.

3.

General Rules

• Most yachts do not allow smoking inside cabins — there should be a designated smoking area on an outside deck if you fancy an after-dinner cigar.

• If you find a yacht that allows you to bring your pet, make sure that you have all the proper documentation (passport, vaccinations, micro-chips).

• Red wine is usually not allowed onboard as it not only stains but it’s also difficult to store on most yachts.

4.

Tipping

P R O V I S I O N I N G T H E YA C H T • Day charters: generally, yachts are stocked with water, soft drinks and ice. You can bring your own food and drinks; have your yacht broker arrange for delivery; or hire a private chef.

TERM CHARTERS • Before embarkation, work with your broker so that the crew has a detailed meal preferences and provisioning sheet. The crew will stock the yacht with food and drinks, and the chef will be prepared to make desired meals for all those aboard.

T E R M ( M U LT I - D AY ) C H A R T E R • The Master Cabin (largest guest room) goes to the principle charterer — the one who is inking the contract and footing the brunt of the bill. If you are splitting the cost equally, sort out the rooms in advance.

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• It’s customary to tip your crew for their service on the last day of your charter; place it in an envelope and hand it directly to your captain. As a general rule, a 15% gratuity is expected for a job well done.

5.

Laws

• In most major yachting destinations, unless the vessel is a Coast Guard Inspected Vessel, it cannot carry more than 12 passengers during a paid yacht charter regardless of the size of the vessel.

• If you’re traveling in international waters, you’ll need passports with visas and another form of government issued ID. • Some countries may require special vaccinations. Please check with your broker as they will confirm for you.

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NEW YORK STATE TRANSFER AND MANSION TAXES How will these incremental tax increases affect the residential real estate market?

WRITTEN BY

Har vey I. Krasner, Warshaw Burstein, LLP commons.wikimedia.org.

THE NEW YORK STATE SENATE and Assembly, on April 1, 2019, enacted changes to Section 1402 of the State Tax Law that increase the New York State Transfer Tax and Mansion Tax on transfers of real property (including apartment cooperative units) located within the five boroughs of New York City and other cities with a population of one million or more.

Effectively, this is a way for the state legislature to tax only New York City, since there are no other cities in New York State with a population that exceeds one million. The new increases are applicable to closings that occur on or after July 1, 2019, although an exception exists for transactions entered into prior to April 1, 2019 but that close on or after July 1, 2019. The Mansion Tax is in addition to the New York State Transfer Tax. THE ORIGINAL MANSION TA X A brief history of the Mansion Tax is in order. On October 19, 1987— a day known as “Black Monday”—the stock market crashed. The decline amounted

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to over 22% of the Dow Jones Industrial Average. An economic crisis ensued and it took two years for stocks to top the levels on the last trading session before Black Monday. The real estate market similarly was adversely affected by the stock market crash and was in dramatic recession for about seven years following the crash.

The e c onom ic c r a sh re su lte d i n a dramatic decline both in real estate prices and, more impor tantly, in the number of transactions in both residential and commercial property. Consequently, New York State revenues also declined dramatically, as its revenues are strongly bolstered by taxes paid at the time of a sale or transfer of real estate. It is in this context that in 1989, the original Mansion Tax was enacted to raise funds for the State to replace the “lost” tax revenue.

The or ig ina l Ma nsion Ta x wa s a straight one percent tax on the sale price of one-, two- and three-family homes as well as condominiums and cooperative apartments, where the sale price

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was $1 million or more (hence the term “Mansion Tax”). The tax was paid by the purchaser of the property. In 1989, a sale price of $1 million for a residence was the exception, and therefore the residence was considered a “mansion.” The tax was not pegged to an index, and $1,000,000 in 1989 had the same effective purchasing power of $2,000,000 today.

THE AMENDED TRANSFER AND MANSION TA XES Today, in New York City, a large percentage of residential transactions exceed $1 million, and the tax applies to many homes that would not be considered mansions. While the original tax was f ixed at one percent for all transfers of residential property over $1 million, the newly enacted amendment to the Mansion Tax is graduated, and as the chart below indicates, the tax rate increases as the sale price increases.

This ref lects the attitude that people purchasing— and therefore able to afford— a more expensive home should pay a higher percentage in taxes.

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The purchaser is still required to pay the Mansion Tax, but the newly amended law makes the seller ultimately responsible for paying the Mansion Tax in the event a purchaser fails to pay the tax,— or if a purchaser is exempt from paying the tax. If a seller is required to pay the Mansion Tax due to the purchaser’s failure to pay (as opposed to purchaser’s exemption from paying), the tax will be a joint and several liability of the seller and the purchaser.

In addition to the rate increases in the Mansion Tax, which apply only to residential real property sales in New York City (or cities of one million or more), New York State has increased the rates of its Real Property Transfer Tax (applicable to all New York State real property sales, including residential) and typically is paid by the seller.

A CHILLING EFFECT What is the effect of these increases in incremental taxes on the overall residential real estate market in New York City? For the past two years there has been a leveling off of prices after skyrocketing price increases for the years following the 2008 f inancial crisis. The year 2018 showed prices had declined. In addition to the softening of the residential market due to market forces, supply-demand ratios, etc., the Federal Tax Reform Act of 2017 was particularly onerous on owners of real estate. By limiting the combined New York State and New York City income tax and real estate tax deductions to a maximum of $10 thousand, it has had an additional chilling effect on real estate transactions.

The perception that a move to New York City will result in a higher tax bill than in other parts of the country has affected an untold number of transactions.

In recent years, there has been an increase in both population and real estate transactions that was due, in part, to older empty nesters choosing to sell the family home in the suburbs and retire to the city where condo and co-op living allowed them to downsize and eliminate the headaches that go with maintaining a house and property. The elimination of most of the income tax and real estate tax deduction likely will make some baby boomers reconsider the choice of cities (specif ically New York City) as their retirement destination.

In addition to t he elimination of these tax deductions, the increase in the Mansion and Transfer Taxes and the cumulative potential psychological effect

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NEW applicable New York State Mansion Tax rates Purchase Price

Pre-7/1/19 NYS Mansion Tax Rate

New NYS Mansion Tax Rate

Under $1 million

not applicable

not applicable

$1 million–$1,999,999

1.00%

1.00%

$2 million–$2,999,999

1.00%

1.25%

$3 million–$4,999,999

1.00%

1.50%

$5 million–$9,999,999

1.00%

2.25%

$10 million–$14,999,999

1.00%

3.25%

$15 million–$19,999,999

1.00%

3.50%

$20 million–$24,999,999

1.00%

3.75%

$25 million and up

1.00%

3.90%

8 SPRUCE

6sqft.com

of this increase may accelerate a trend to avoid New York City. When statistics for calendar year 2019 are available, it would not be surprising to see a decline

in both transactions and certain population groups moving to New York City. ■ Harvey I. Krasner is a partner at Warshaw Burstein, LLP in New York

NEW applicable New York State Transfer Tax rates Pre-7/1/19 NYS Transfer Tax Rate Purchase Price — Residential

New NYS Transfer Tax Rate — Residential

Pre-7/1/19 NYS Transfer Tax Rate — Commercial

New NYS Transfer Tax Rate — Commercial

Under $2 million

0.40%

0.40%

0.40%

0.40%

$2M–$2,999,999

0.40%

0.40%

0.40%

0.65%

Over $3 million

0.40%

0.65%

0.40%

0.65%

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TRANSFERRING DEVELOPMENT RIGHTS BY ZONING LOT MERGER What’s a Wedding Without Parties?!

WRITTEN BY

Photo Credit: Miguel de Guzmán

Michael Smith with contributions by Alexander Berger (Herrick, Feinstein LLP)

160 EAST 22ND STREET, CANTILEVERED OVER THE ADJACENT 2-STORY TOWNHOUSE

THE MOST SUCCESSFUL marriages are combinations that benef it both individuals. So it goes in a zoning lot merger, which is like a marriage between New York City properties. In a zoning lot merger, owners combine adjacent lots into a shared zoning lot, and pool together their development rights. For example, two owners with lots that each have 100,000 square-feet of development rights could agree to a zoning lot merger that gives them 200,000 square-feet of collective rights. They could then agree to a development rights transfer that sends

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50,000 square-feet from one site to another, leaving one with 150,000 square-feet of development potential, and the other with 50,000 square-feet. These transfers are increasingly common because owners with untapped development rights profit, and the developers who purchase them can construct larger buildings.

I n consu m mat i ng t h i s ma r r ia ge , owners typically enter into a prenuptial agreement of sorts, called a zoning lot development agreement (ZLDA).

A ZLDA (pronounced Zelda) is supremely important because it dictates how

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the development rights will be split up, and without one, unused square footage would be free for the taking by any owner. Frequently the subject of misconception: while recommended, technically you do not need a ZLDA to merge zoning lots (rather, the marriage is actually consummated separate from the ZLDA, in a marriage certifi cate of sorts called a declaration of zoning lot restrictions).

Owners play the lead role in ZLDAs, but the marriage can’t go on without all of the parties (in interest)! That’s because under New York City’s byzantine,

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1,300-page Zoning Resolution, zoning lot mergers require waivers from all “parties in interest,” including mortgagees of the sending and receiving sites.

Lenders are the classic example of parties in interest, and they often play a role because mortgage collateral typically includes development rights. To consummate a zoning lot merger, a borrower typically requests a waiver of the lender’s “party in interest” status under the Zoning Resolution, the lender’s consent to the borrower’s ZLDA, and a subordination of the mortgage lien to the ZLDA. When lenders consider these borrower requests, it’s important to perform the due diligence necessary to ensure their rights and collateral are protected.

Moreover, beyond lenders, a party in interest should always conduct an independent zoning analysis before consenting to a zoning lot merger. After a fee title closing, purchasers walk away with physical property that can be seen and touched (land, building, keys, etc.). Development rights however, are invisible. Until a developer pulls a building permit to use the rights (which may be long after money has changed hands), New York City provides no confi rmation that the transaction was correctly completed.

A spec i f ic item to foc us on is z oning complia nce.

Let’s say a property owner enters into a zoning lot merger with a lot that contains an illegal hotel. Building violations occur on a zoning lot-by-zoning lot basis, so in that scenario, the hotel violation becomes the subject property owner’s problem as well. To avoid such complications, parties in interest should conduct a zoning compliance analysis of every property that will be joining the zoning lot, and include ZLDA terms that limit further zoning lot expansion without its consent. In addition, parties in interest should ensure that the ZLDA provides for the means to f ix future problems, including through self-help remedies and zoning lot divorces.

ZLDAs also typically have multiple provisions devoted to a property owner’s ability to rebuild damaged improvements after a casualty, in part because New York City can downzone areas. If a downzoning occurs, and an owner with no remaining development rights suffers a catastrophic event, such as a building collapse, they would be unable to rebuild a true replacement building - they would have to build smaller!

ZLDAs can also include easements, purchase options, rights of fi rst refusal and fi rst offer, and unusual provisions.

Among the most common provisions are light and air easements, which restrict the height of future buildings, and provisions that give a developer the right to cantilever a new building over its neighbor’s airspace. Parties entering into a ZLDA may also be executing an unrecorded construction license agreement (CLA) that requires temporary scaffolding, access to the neighboring property or permanent underpinning beneath it. Parties in interest should pay close attention to these ZLDA provisions, and ensure that CLAs protect the stability of buildings on the property in which they have an interest.

Zoning lot mergers are increasingly common, and as major development expands into the boroughs, we should see more of them. ■ go online to equicapmag.com — For a recent article by this author regarding obtaining underpinning rights from neighboring properties — “Like a Good Neighbor, RPAPL § 881 Is There: Developer Receives Underpinning Relief through Court-Ordered Access License”.

DRINK RESPONSIBLY Composite

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URBA N PL A NNING

TRANSIT ORIENTED DEVELOPMENT

Financing the Infrastructure that Supports It

The solution is to create a direct and immediate correlation between the catalyst of the increased property values and the actual value there is to capture.”

WRITTEN BY

Michael Santora, Principal, Scott Brownrigg + Crown

TRANSIT ORIENTED DEVELOPMENTS (TODS) are not a new concept; however, they have recently been gaining popularity as a method for creating sustainable development during rapid urbanization and population growth.

TODs seek to maximize the business, residential and leisure space within close proximity to one or many modes of public transportation. The access to new or improved transportation provides the convenient connectivity to the rest of the city that can regenerate neighborhoods and increases property values—but are the transportation systems seeing their fair share of the income in comparison to what they invest? In New York City at least, it would seem not.

Waiting for future property taxes to generate revenue and make its way back to the transit system has proven to be an insuff icient system. This city requires a state-of-the art transit system that covers the entire city and maintains a low fare for everyone to afford.

When the transit system goes through an expansion, or existing infrastructure is improved, it causes the property values to immediately rise. Conversely, the additional operation and maintenance costs associated with the project, as well as the debt for the capital improvements, create more of a f inancial burden on a system that already loses money.

The solution is to create a direct and immediate correlation between the catalyst of the increased property values and the actual value there is to capture. Here is how that can be achieved: • Up-zone land occupied by transit systems, stations, yards, rights of way and other facilities. Then amend zoning regulations to permit and promote development above appropriate infrastructure and transfer development rights to surrounding lots where building directly above is not appropriate.

• Allow the transit operator to finance the proposed expansion or improvement by pre-selling development rights to sur-

rounding properties at future (post-improvement) market values. This will also ensure that new private developments are constructed simultaneously with the infrastructure, so the urban fabric develops cohesively.

• Allow the transit operator to share in profits of developments constructed over the property in perpetuity by partnering with private developers through ground lease structures. This will ensure funds for the ongoing operation and maintenance of the project.

The va lue of c on ne c t i n g t r a n sit infrastructure improvements to private l a nd de ve lopme nt i s t wo -fold ; t he public captures the monetary value of private development without having to pay construction costs or take on the building risks, and infrastructure projec ts w ill be implemented fa ster because they will not have to compete in a political form for public funds.

A prog ra m like this w ill contour New York City’s urban-development approach by creating new residential neighborhoods that are fully integrated within the transit infrastructure. The stations will be connected by a network of interior passageways lined with amenities, as well as with outdoor parks and plazas. In addition to these commuter communities now being eff iciently linked to the central business districts through mass transit, some of the development land, such as train yards and bus depots, can be expanded under the same model to create industrial and manufacturing spaces that generate local working class jobs and facilitate last mile distribution centers that, in the future, may also permit public transit infrastructure to dually act as a freight network during off-peak times. Additionally, these developments can incorporate affordable housing and the city can tie additional zoning bonus tiers to achieving difference thresholds of affordable housing and community facilities.

In conclusion, our current public transportation model is unsustainable and programs such as the one outlined here should be implemented to ensure these systems are f inancially independent and self-reliant. The dense populations and high property values of New York City will allow this program to produce substantial funding while promoting sustainable urban expansion. ■ Michael Santora is Founder & Principal of Crown Architecture and Consulting, D.P.C, which has recently partnered with Top 100 Global Architecture fi rm Scott Brownrigg to form Scott Brownrigg + Crown.

Illustration courtesy of Guilford Station TOD Concept designed by Scott Brownrigg + Crown

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5 0 0 M E T A V E B R O O K L Y N

Spectacular water views no longer require a yacht.

The cityâ&#x20AC;&#x2122;s sexiest hotel isnâ&#x20AC;&#x2122;t in Manhattan.

Taking reservations at indigowilliamsburg.com

IN TERV IE W

that price spike is where traders like me sell the positions we just accumulated.”

—Shah Gilani

LU N CH WI T H

S H A H G I L AN I

EQ’s Daniel Hilpert recently sat down with Shah Gilani, a retired hedge fund manager, Fox business news regular and editor of WallStreetInsightsandIndictments.com, for lunch at DaDong and to discuss real estate and the economy.

DH: Shah, it’s always good catching up with you, especially having lunch at DaDong, one of our favorite places. I took the liberty of ordering the Champagne Glazed Vine Tomatoes and Chinese Cabbage Two Ways [Mustard & Vinegar]. The Chinese Cabbage is one of the best in the City, it’s a “must try.”

SG: I look forward to it; this is your place Daniel, I have to thank you for introducing me to it, as it’s now one of my favorites too.

DH: I’m seeing a lot of people here. Is this a reflection of our economy, or do you believe the U.S. economy is slowing—and are we facing the prospect of any kind of recession?

SG: I don’t see the economy backsliding into recession, at all. The GDP growth trend since 2015 has been solid, if not great. The low point of 2015 was Q4, when GDP growth slowed to less than 0.5%. In 2016, it rose to about 1.8% for the year. In 2017 we saw it shoot up to 2.65%. Last year it jumped to 3%. That’s a very positive trend. There’s no reason to expect a turnaround.

Some slowing wouldn’t be a surprise or a worry, probably because of our dust-up with China over trade, and also that we’re now facing down Mexico on trade over President Trump’s immigration policies.

But signs of any kind of recession… no, none.

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DH: 2019 Q1 GDP came out at 3.2% annualized and still the equity markets backtracked. Some say the slip in equities was all China trade-war fears.

From what I’ve read, it’s the result of markets seeing unexpectedly strong GDP growth in Q1 and thinking that it’s as good as it gets and that we’ve borrowed too much from future consumption and production. What are your thoughts?

SG: I think you’re right; some investors have been discounting the solid GDP growth numbers, which by the way for Q1 2019 just edged down to 3.1% on a second revision. And, yes, I think investors hedged their equity bets a little this Spring on the heels of a slow Q4 2018, at 2.2% growth, then the Q1 jump, which could be looked at as borrowing from future quarters’ growth. But, that’s superficial, in the sense that models don’t trade much based on that kind of discounting.

DH: Why not? If investors see the economy jump and then believe that jump, which came as you say on the heels of an unexpected slowdown in Q4, might be unsustainable, especially with our trade war with China heating up, why wouldn’t they discount that growth and do some selling or hedging?

SG: Because the Federal Reserve watches the markets, sees stocks trade lower, worries about what

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that will do to investor sentiment and consumer confidence, and consistently rushes in to apply its so-called PUT. And these days almost everyone’s trading models and their econometric models apply that Fed PUT in their calculations.

So, the discounting gets discounted by the assumption of Fed easing.

DH: And that’s just what we got, wasn’t it? The Fed just saw equity markets slip, not even 10%, and they came rushing in with rate cut rhetoric. That’s the PUT you’re talking about.

SG: Precisely. Ah, this looks like our food, what did you order for our main course?

Louis Fed Bank president, who just said he sees rate cuts potentially ahead, and Fed Chair Jerome Powell talking about acting appropriately, meaning cutting, if the trade wars get out of hand, in the Fed’s opinion that is, that’s their way of signaling they’re at the ready to backstop markets. Not the economy mind you, markets. It’s a real problem, in the long run, because we don’t know how markets will ever “clear” if they’re not allowed to. That means bubbles.

refinanced or over-leveraged themselves. I’m sure you also watch the yield curve. In my opinion, the flattening of the yield curve is problematic for the same reason, a flat yield curve doesn’t allow for proper risk pricing. What’s coming next?

DH: For our dessert I ordered Multi-Flavored White Chocolate Shells and Crispy Chocolate Rice Pudding. Speaking of yield curves, in my business it’s mostly about banks, though hedge funds and insurance companies are increasingly go-to providers of mortgage funds. How do you see the banks these days, especially given your hard criticism, I’d say bashing of them, during the financial crisis and during the Great Recession.

SG: The big banks are in much better shape today than at any time since the crisis, thank goodness. But the flat yield curve is cutting into their NIM (net interest margin) and trading is too up and down to be a consistent, regular contributor to earnings. They’re in good shape, but I believe they’re still over-leveraged. It’s the smaller banks that I’d be worried about.

They have much different funding and liquidity profiles.

DH: That’s the Steamed King Crab, the Truffle Braised Whole Abalone, and lastly the Prime Chili Diced Short Rib. So tell me, what’s just driven interest rates down so quickly and why would the Fed come in after rates have been hammered lower by strong buying, especially of the Treasury 10-year, and talk about cutting?

SG: First, on the rapid rise in prices of bonds and the slide in rates, I think a lot of that is institutional trading. Big Treasury buyers piled into bonds to make a profit on price appreciation, and it became a momentum trade. At the same DH: True. Lastly, where do time, and this is how these big you see equities going? boys play, knocking down rates SG: I see them going higher makes it look like investors are as long as the Fed PUTs are buying bonds as a safe haven in place. If the trade war with because the trade war and a China gets resolved, equities slowing economy is going to hit will rally in relief, maybe 10%, stocks, while bonds will rally. maybe 20% if the economy That’s well played. As rates looks like it’s still growing.

MULTI-FL AVORED WHITE CHOCOL ATE came down the financial news On the other hand, if we don’t SHELLS media started talking about reget a resolution to the China Photo courtesy of DaDong cession fears being reflected in trade tremors and at the same the bond market, and low and time tech stocks get the wind behold, the Fed stepped in with calmDH: Glad you brought up the Fed and knocked out of them by the Justice ing words. And guess what? That push the prospect of rate cuts. Interest Department and the FTC on anticomlower in rates, that price spike, is where rates drive our business. How’s that a petitive ground shaking, equity markets traders like me sell the positions we just problem for our business or commercould drop a good amount lower, as in accumulated. cial real estate in general? maybe 10% to 20% lower.

But there’s more. Sadly, in my SG: It’s not a problem, it’s great for you. opinion, it’s because we don’t have In fact, you should be looking at a lot DH: Then I guess we’ll just have to “free markets” anymore. The Fed is the more business. I’m sure your transachave you back soon to tell us what’s economy’s central planner, and that’s tions will increase markedly now that next. Thanks, Shah. what we’re seeing increasingly. The rates have just been trounced, as long SG: Until next time, Daniel, thank you recent rhetoric by James Bullard, the St. as potential clients have not recently for a delightful lunch. ■

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Coffee

Q&A

DE A L M A K ING

WITH DAVID STEINGARD OF LAUGHING MAN COFFEE COMPANY LAUGHING MAN COFFEE AT 184 DUANE STREET is a neighborhood hangout where I frequently meet with other Tribeca real estate execs to get an inside scoop and negotiate deals. Founded in 2011 by Hugh Jackman and David Steingard, the company supports coffee farming communities by investing in programs that clear the way to health, growth and success for coffee farmers and their families. Recently, I sat down with David Steingard to sip double shot macchiatos and talk about all things Tribeca, entrepreneurship and coffee. — Daniel Hilpert

David Steingard: I loved being a prosecutor at the Brooklyn District Attorney’s office, both the work and the friends I made. As someone with an entrepreneurial spirit, I get a little antsy, especially when I am in an environment that does not reward or foster ingenuity and initiative. I started to look for the next thing. I knew of the vacant space where the cafe is now and thought about getting back into coffee; my family had been in the business when I was growing up. It was around the time specialty coffee, micro-climates and attention to the farmers was starting to become more important. It was a great mix of hospitality and creativity that I was looking for.

At the same time, Hugh had come back from an Ethiopian coffee project he was supporting and he wanted to get more involved. We pitched our idea, he loved it, and we partnered up. Like Paul Newman’s organizations, Hugh gives 100% of his profits to the Laughing Man Foundation and I donate 50% of mine. Our contributions support various projects, the latest being 100 new home and home improvement projects in Colombia for coffee farmers, and 45 college scholarships for children of coffee farmers.

What has it been like having Hugh as a partner? What is he like to work with?

He has a genuine love and care for Laughing Man and what it can do for others. He is extremely smart and well-read in world socio-economic issues, and is a self-proclaimed coffee snob but as down to earth as they come. Laughing Man is not a celebrity endorsement after-thefact; he is fully engaged in its growth and brings a voice of compassion, authentic-

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ity and joy through which he can tell the story. His ability to give full attention to anyone or anything given the demands on him is inspiring.

What is Laughing Man’s mission? What is its role in the community?

Our mission is twofold. Locally, it’s to change the customer’s world through hospitality, what we call ALL BE HAPPY moments. Our motto, ALL BE HAPPY, comes from a sanskrit prayer “may all be happy, may all be free of disease, may all have wellbeing and none suffer the misPhoto Credit: Laughing Man Coffee

Daniel Hilpert: You were in law, and now you run Laughing Man. Tell me a little bit about your background and what made you embark in this direction.

HUGH JACKMAN ENJOYING A CUP OF L AUGHING MAN COFFEE

ery of any kind.” We take ALL BE HAPPY and ask how we can create a moment for someone where they feel connected and a little more inspired as they go through their day. Great hospitality can create a value reset, and for a moment a customer can remember the real things they cherish. We know our regulars’ drinks

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before they order. We have a group of PS 234 parents who show up at 8:30am after dropping off their kids. One of them, Claudia Saez-Fromm, a five-year regular, gets a large plain black coffee, while a friend of hers gets a cortado. They stay and unwind before happily leaving for their SoulCycle and yoga classes. Local professionals, like Claudia, who’s also a broker at Corcoran, linger to set up meetings or build relationships. So locally, it’s a very simple principle, but hard to pull off for as long as we have and that speaks to our incredible staff.

Globally, we want to be a company that leaves the world a little better than we found it. We want to nourish and support the very things that we draw from, the farmers and their farms. To us, coffee is a family business, in the cafe çwe treat staff and customers as family. The foundation is focused on projects that move the whole family and community forward.

You’re adjacent to Duane Park, how did you get these street seats approved by the City?

The street seats are part of a DOT administered program. Under their watch and authorization, we were allowed to provide a public seating area for the community. We paid to have it built and we maintain it. It has really brought the community together and fosters the kind of connection we think is valuable to a happy life.

What is Laughing Man’s next move?

We have had a location at Battery Park for about six years and it’s going great.

It has a beautiful view of the water. We’re soon expanding this space into a larger format cafe, offering the community the same great vibe and community feeling with a little more of a food offering, and additional space to sit and shelter from the heat and cold. Hopefully, we will open

by Labor Day. ■

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56 LEONARD, 6 WEST Price: $8,650,000 | Bed/Bath: 3/3.5 | Web ID: 5767388

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Real estate agents affiliated with The Corcoran Group are independent contractors and are not employees of The Corcoran Group. Equal Housing Opportunity. The Corcoran Group is a licensed real estate broker located at 660 Madison Ave, NY, NY 10065. All listing phone numbers indicate listing agent direct line unless otherwise noted. All information furnished regarding property for sale or rent or regarding financing is from sources deemed reliable, but Corcoran makes no warranty or representation as to the accuracy thereof. All property information is presented subject to errors, omissions, price changes, changed property conditions, and withdrawal of the property from the market, without notice. All dimensions provided are approximate. To obtain exact dimensions, Corcoran advises you to hire a qualified architect or engineer.

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ŠCOPYRIGHT 2019

W E A LTH M A N AGEMEN T

Shanghai wants to be an international city and a center for hedge funds” — Mr. Zhang Xiaosong

WRITTEN BY

Bruce McGuire

Managing Partner, Global Alpha Research, LLC and Co-Founder of the Greenwich Economic Forum

C

hina’s economic growth over the last 40 years has been astonishing. The rate may have slowed, but the country continues to mint high-net-worth individuals (HN W Is) at a break neck pace. The number of Chinese with at least RMB ¥10 million (about US $1.5 million) in investable assets increased from approximately 180,000 in 2006 to nearly 1.6 million in 2016, representing a more than eightfold expansion within a decade.

Among HNWIs, the ranks of the richest of the rich—those with at least RMB ¥100 million ($15 million) in investable assets—have grown at an even faster rate.

There are now about 116,000 of these ultra-high-net-worth individuals (UHNWIs), compared with 7,000 in 2006.

All in, China’s pool of private wealth has ballooned to R MB ¥165 trillion (about $24 trillion), more than six times its level in 2006.1 China’s ever-expanding pool of private wealth— roughly 40% of which is held in cash and bank deposits—is about twice the size of the country’s GDP and represents one of the fastest- growing accumulations of wealth in modern history.

Collectively, China’s HNWIs have about RMB ¥49 trillion (about $7 trillion) in investable assets, and they have become more open about how, and with whom, they invest that money. Older wealthy individuals in China, who were the f irst generation to benef it from the government’s embrace of a market-based economy, were inclined to manage their own money, favoring real estate and “hot” growth stock. By contrast, newer HNWIs (who often include the sons and 1

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daughters of f irst-generation company founders) are more willing to seek professional advice.

The explosive growth of China’s HNWIs, combined with their increased willingness to use professional advisors creates tremendous opportunities for banks, wealth managers, and fund managers, including hedge funds.

The more established and sk illed western asset managers are taking notice and deploying to mainland China for the fi rst time. They are taking advantage of programs such as the Qualif ied Domestic Limited Partnership program run out of Shanghai, that allows mainland Chinese to invest in foreign hedge funds.

Foreign fi rms are also taking advantage of new rules that allow foreigners to set up wholly foreign owned enterprises in China— the so called WFOE (pronounced Woofee).

Even so, western f irms as large as Fidelity and BlackRock struggle with brand awareness, and so the real nearterm story is about the domestic Chinese fund industry.

I f irst became aware that China was building a domestic funds management

Photo credit: Shutterstock

industry in early 2011, when I was contacted by representatives from Shanghai’s FengXian District, one of the 18 districts that make up the city, asking for help in organizing a junket for government and business officials visiting Greenwich, CT, the “hedge fund capital of the world.”

W hen the deleg ation arrived, we rolled out the red carpet and introduced them to members of the local hedge fund community, local academics and even dined with the Mayor of Greenwich.

Greenwich is the example that the Chinese want to emulate, proclaimed Mr. Zhang Xiaosong, a member of the

5th China Private Wealth Report, by Bain & Company

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W E A LTH M A N AGEMEN T

FUND TOWNS The explosive growth of China’s high-net-worth individuals has created opportunities for western asset managers—and China’s growing domestic hedge fund industry

SHANGHAI IS ONE OF 15 CHINESE CITIES WHERE LOCAL HEDGE FUND BUSINESS HAS TAKEN OFF.

Standing Committee and Vice Magistrate of the Shanghai FengXian Committee of the CPC People’s Government of FengXian District.

“Shanghai wants to be an international city and a center for hedge funds,” he told us. “We want to know how to create a good environment to attract the fi nancial industry.”

When our guests returned to China, they got to work building a hedge fund enclave of their own.

Two years later, while speaking at a conference in Greenwich, I descended the stage, to be greeted by a Chinese

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woman who asked, “are you Bruce McGuire, President of the Connec ticut Hedge Fund Association?” When I said yes, she informed me that she was a Chinese expat living in Stamford, CT, and that she had been deputized by officials in Beijing to make contact and arrange a similar junket.

When asked if they were familiar with the Shanghai initiative, they replied yes, but that “Beijing Fund Town” would surpass anything being built in Shanghai.

In China, as I have learned, they like to organize their business districts by industry type, and in the case of the asset

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management industry, they call these places “Fund Towns.”

Hedge funds didn’t exist in China six years ago, but with the blessing of the central and provincial governments, the Chinese hedge fund industry is growing rapidly — by my last count, there are no fewer than 15 different fund town initiatives in cities throughout China. The total number of Chinese hedge funds doubled since 2016, and assets under management have more than tripled over the past three years.

Since those f irst junkets, I have received many Chinese delegations from EQ.

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Photo credit: Shutterstock

China’s Stock Market is

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Alpha Rich

If you haven’t been paying attention to the Chinese capital markets, then you will probably be surprised to learn that the Chinese stock market is already the second largest in the world, while the Chinese bond market ranks #3. China’s markets have entered something of a sweet spot; while they’ve grown more sophisticated, adding new tools such as futures and options, they’re still inefficient enough to produce attractive returns for skilled managers.

That’s thanks in part to the outsize impact of individual investors, who drive more than 80% of volume in the Chinese stock market, vs. about 15% in the U.S. It’s easier to produce alpha in China. Alpha — the holy grail of investing — is the investment industry term used to describe portfolio returns attributable to a manager’s skill not general market forces. For those outside of China and unable to access the most talented Chinese fund managers, take heart. The domestic Chinese stock market, the “A-Share” market has been made more accessible.

Chinese authorities implemented the Qualified Foreign Institutional Investor program in an effort to internationalize the RMB, and allow (on a selective basis) global institutional investors to invest in RMB denominated capital markets.

Once licensed, foreign investors are permitted to buy RMB-denominated A-shares in China’s mainland Shanghai and Shenzhen stock exchanges. Thus, foreign investors benefit from an opportunity to invest onshore, which is otherwise often insulated from the rest of the world, and subject to capital controls governing the movement of assets in and out of the country.

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cities such as Hangzhou, Nanjing, Shenzhen and Shanghai, all attempting to create a fund industry enclave — the “Greenwich of China.” As CTHFA President in Greenwich, CT, “fund town #1”, I have become a mini-celebrity in Chinese fund industry circles. I have spoken at Chinese fund industry conferences, been profi led in China Daily Newspaper, and even made an appearance in China Central TV. In Hangzhou, a video of me touring the local fund town is on display, and a picture of me speaking to the local Chinese press graces the fund town’s web site.

Ha ng zhou is a n interesting ca se.

A city of 9 million, it is approximately one hour south of Shanghai by high speed rail. It is the capital city of Zhejiang Province, a very wealthy and busi-

ness-friendly southern province that is home to a vibrant tech industry anchored by Chinese tech giant Alibaba.

As a sign of its growing clout Hangzhou, was selected as the site of China’s f irst and only G20 Summit back in 2016.

With 9 million residents, Hangzhou is large by U.S. standards, but its planners have made livability a priority. The beautif ul “West Lake” district is the pride of the city and a destination for vacationers from all over southern China.

The gated Yuhuang Shannan community—on the same site where emperors in the Song dynasty prayed for good harvests centuries ago—takes city planning to the next level; it is quiet and green, exuding the feeling of a laid-back, highend oasis.

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HANGZHOU AT A GLANCE Population: 9.8 million (5th highest in China)

1) LIUHE PAGODA. 2) YUEFEI TEMPLE. 3) CHINA NATIONAL SILK MUSEUM. 4) WEST L AKE. 5) HANGZHOU ZOO. 6) HANGZHOU CUISINE.

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5 Photo Credit: commons.wikimedia.org, chinadiscovery.

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Like Greenwich, Yuhuang Shannan, has become popular with the Chinese hedge fund crowd. So popular, in fact, that local authorities turned the entire village—until recently a hub for the design industry—into an exclusive enclave for China’s aspiring masters of the universe.

More than 1,000 hedge funds and private equity funds, overseeing a combined RMB ¥580 billion (US $84 billion), have registered in the village since its official rebranding in May 2015 as, straightforwardly enough, Yuhuang Shannan Fund Town (YSFT). Unlike Greenwich, tax subsidies amounting to 30% of a typical firm’s tax bill add to the town’s appeal, and YSFT now boasts one of China’s largest hedge fund clusters.

Realizing that they are in competition with other Chinese fund towns, Hangzhou has been the most persistent in cultivating good ties with Greenwich, CT. So much so that in 2018, we worked to forge a sister-city relationship which gives them significant street cred back in China.

Not too long ago, the thought of a hedge fund village in Hangzhou, or anywhere else in China, would have struck most observers as absurd. Hedge funds

weren’t officially sanctioned in until 2012.

Before then, authorities tended to focus their development plans on the country’s vast middle and lower classes. Havens for elite money managers, haven’t traditionally been a priority for the ruling Communist Party.

Today however, the concept isn’t so outlandish. The Chinese hedge fund industry is booming, thanks to support from securities regulators and the gradual liberalization of local equity and bond markets.

For YSF T, and the 15 smaller fund towns scattered across the country, longterm success may ultimately depend on what kind of China emerges over the next few years. If President Xi Jinping’s government follows through on pledges to give markets and service industries a central role in the $11 trillion economy, the hedge fund boom may have a lot further to run. If, however, policymakers backtrack or the country proves pessimists right by tipping into a financial crisis, the tranquility in China’s Greenwich-like communities is unlikely to last. It is also important to realize the big difference between the Chinese and western regulatory environments. As an example, in 2015

after China suffered dramatic declines in its stock markets, regulators passed a law making it a criminal offense to be an “unfriendly short seller”.

For economic planners keen to reduce the nation’s reliance on infrastructure spending and heavy manufacturing, there’s a lot to like about hedge funds.

They’re non-polluting, creating highskilled jobs, and adding more choice to a domestic investment landscape dominated by bubble-prone property and equity markets.

Investor inflows fueled a 55% jump in industry assets, while the number of registered funds has risen to a record 27,015, according to the Asset Management Association of China.

I believe that the bilateral relationship between the US and China, and the integration of Chinese markets into global capital markets represents the central issue of our times. Great fortunes will be made and lost, and I for one am thankful to have a ringside seat, and to be living in interesting times! ■ Bruce McGuire is Managing Partner of Global Alpha Research, LLC and Co-Founder of the Greenwich Economic Forum.

Merging the innovation of a young growing firm with the experience of seasoned attorneys, Romer Debbas, LLP is a recognized authority in the field of real estate law.

Romer Debbas, LLP specializes in the acquisition and disposition of commercial and residential real estate, commercial finance, condominium development and conversion projects, commercial leasing, banking/ private banking, co-op/condo board representation, general corporate law, real estate and commercial litigation, business/personal immigration, trust and estates and taxation.

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FOOD & DRINK

LORD & L ADY CARNARVON REL A X WITH THE 1936 ROLLS ROYCE PHANTOM BEFORE AN EVENINGS’ FESTIVITIES.

Glass

FR O M G A R D EN TO

A DA M VO N G O OT K I N ’ S H I G H C L E R E G I N I S D I S T I L L E D FO R T H E D I S C E R N I N G — A N D D OW N TO N A B B E Y FA N S WRITTEN BY

Jacqueline Bur t Cote

T

here have likely been many to make the lofty (or dubious) claim that whiskey runs through their veins, but the biological impossibility seems somehow plausible in the case of Adam von Gootkin. His ancestors ran Chafee & Co. Distilling until the distillery was shut down for tax evasion on a Canada-bound shipment of whiskey. During prohibition, the family opened the opulent Chafee’s Hotel on the Connecticut River featuring a notorious speakeasy.

In 2011, von Gootkin—along with his partner, Peter Kowalczyk—brought his family’s then-dormant legacy to life with Onyx Moonshine, the Nutmeg State’s first authentic high-end moonshine and whiskey brand. And then there’s his most recent venture into the world of spirits, Highclere Castle Gin, which has taken the 36-year-old entrepreneur far from his home state to the juniper-covered hills of Hampshire, England surrounding Highclere Castle... or as you might know it, Downton Abbey.

Fans of the award-winning series and soon-to-be fi lm are more than familiar with the image of High-

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clere Castle, which serves as the fictional abbey’s stunning location. But even the most devoted Downton watcher may be unaware of the Jacobethan style country house’s history, or the fact that it’s situated on a fully functional 5,000-acre estate, home to the 8th Earl and Countess of Carnarvon.

Interestingly, von Gootkin’s first collaboration with the Highclere Estate was a detour from spirits: the Highclere Castle Cigar. Per von Gootkin, “enjoying cigars has been a tradition at Highclere Castle since the 1800s and continues today.” Sparked by von Gootkin’s friendship with Foundation Cigar Company founder and

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FOOD & DRINK

world-renowned cigar blender, Nick Melillo, the Highclere Castle Cigar was crafted after years of travel, research and building special relationships throughout Central and South America.

While the Highclere Cigar is distributed around the US and the UK to m a ny a c c ol a de s a nd awards, Lord Carnarvon and von Gootkin agreed that Highclere Castle’s legacy had still more to offer the world.

— ADAM “ W h i l s t D ow nt o n Abbey ha s brought much attention to the beauty and heritage of ou r home , H ighclere Castle, there are so many more layers of both history and diversity in the landscape and world in which the Castle sits as the centerpiece,” Lord Carnarvon tells EQ. A farming estate which produces mixed crops, Highclere is home to “a large herd of sheep, conser vation banks of wildf lowers, beetle banks, stubble [fields] for birds, old chalk downland and ancient Bronze Age landscapes,” Lord Carnarvon continues.

“Highclere was owned by the Bishops of Winchester for 800 years. The Estate had good f ield for pasture for horses, they grew crops such as oats and created a walled garden for fruits trees and herbs. The walled garden is still here today—the Monks’ Garden—framed with lavender borders, and walking through it we have used our heritage as our inspiration. Behind the Monks’ Garden lies the Orangery, and as in past centuries we grow citrus fruits. Meanwhile, juniper has grown on the ancient hills for hundreds of years and there is also some planted in the gardens. Optimistically, we have planted

“

Super premium gin is the fastest growing spirits category in the world”

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VON GOOTKIN

LORD CARNARVON ENJOYS A HIGHCLERE CASTLE CIGAR

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ever more juniper, since we began this project, given it is the heart of every gin.”

Even the bottle pays close at tention to de tail, another trademark of von Gootkin and the Ca r na r von’s u n iquely high standards. “It reminds us of the squared Ca st le tower s , wh i l st the beautiful purple colour draws again on the spiritual color associated with the Bishops,” says Lord Carnarvon.

Centuries of tradition are catching up with the modern market at the perfect time, according to von Gootkin.

“Super premium gin is the fa stest g row ing spirits categor y in the world,” he says. “When you combine the deep roots of Highclere Cast le’s her ita ge w it h a n exceptional tasting gin and a strong global distribution network, we’re seeing markets coming on board faster than we ever expected. Availability will begin in the United States in July/ August of 2019.”

Lord Carnarvon f inds himself likewise marveling at the joint venture’s successful trajectory thus far, on multiple levels. “It is amazing how projects begin, how an idea has led to new friendships and become real—part of our real Downton Abbey story,” he says.

“I think we all started thinking it was a good idea but then you have to go out and test it and ask for opinions. It has however already been so enthusiastically received and customers really appreciate the detail and care of the past two years, which we have used time and again to ensure we think it is better than the best.”

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FOOD & DRINK

Highclere Castle... or as you might know it, Downton Abbey

Distilled with botanicals from Highclere’s own land, the taste is an absolute departure to a time and place that the majority of the population has only seen on the screen. “The authenticity of the story is truly rare in the world of spirits,” says von Gootkin. “It’s resonating with people. And the reason it’s resonating with people is because it’s real.” “ Th rough book s a nd TV we have sought to share the journey from f ield to table, of provena nce a nd now have sought to extend our jou r ne y to c re ate a g i n ,” says Lord Carnarvon. “The theme is Garden to Glass. It is again about provenance, her it a g e , produc i n g some thing excellent, distilling taste, style and memories.”

It appears that distilling style and memories is von Gootkin’s signature skill, and Highclere Gin is the proof. ■

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Gin & Tonic HIGHCLERE STYLE I N G R E D I E N T S

50 ml HighClere Castle Gin Artisanal Tonic Water Fresh Orange Squeeze G A R N I S H

W I T H

Orange Peel and Rosemary Sprig S E R V E

I N

Chilled Highball or Balloon Glass

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made in new york www.r ivaynyc.com

“

FOOD & DRINK NO BETTER PL ACE TO SAMPLE CUISINE THAN AT A BEACH-SIDE PART Y

Great local late summer corn...it can be a great relish, an amazing side dish or the fresh pop in our Striped Bass Provencal or a similar dish.

— PETER AMBROSE

HAMPTONS FOOD SCENE T WRITTEN BY

Alex Lehnen aka Alex von Salad

he “Hamptons,” which is not what the locals call this area and most likely never will, has an abundance of excellent food sources. Whether getting vegetables at the farm stand or going to a great local restaurant, there is something for everyone. However, knowing which farm stands are selling their own produce and experiencing great local food prepared by our top-notch East End chefs is a complicated task because not everything in your rear-view mirror is locally sourced.

There is nothing wrong with eating other good things that are not local, but if you’re already fighting traffic on Friday afternoons to get out of the city heat in the middle of the summer or maybe Blade it to Easthampton airport, then why not eat local? Experience what local chefs

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and local farmers have in store for you.

After all, the “Hamptons” got its start as a farming, fishing and whaling community way back in the 1640s.

I f irst came out East the summer of 1997. I was running a nightclub in the city and was asked by the owners to come out

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Photo Credit: chefpeterambrose.com

FOOD & DRINK

on weekends to man the door at the Tavern nightclub on Tuckahoe Lane (an old potato barn) in Southampton.

The Tave r n wa s t he e pitome of NYC-Hamptons nightlife. It has a great crowd with many celebrities, models, photographers and artists.

Friday afternoons I’d jump in my ’69 Triumph and head east on the LIE. Sunday afternoons I returned. I was officially a Hampton weekend commuter except I came out to work, not to vacation.

I got to experience a few local restaurants and slowly got the feel for one of the most beautiful places on Earth. I fell in love with the Hamptons and have been ever since.

My fi rst real culinary experience was 1999 at Pacific East in Amagansett which was then helmed by Alexander Duff & Chef Michael Castino who had successfully launched Pacif ic Time on Lincoln Road, one of the best restaurants on Miami Beach at the time together with Jonathan Eismann.

Their Hamptons outlet was superb.

Pan-Asian cuisine which was the style of the moment in the late nineties.

It was also the year I opened my fi rst restaurant in NYC in the Flatiron District. “Von’s Aura” was a true Supper Club where the menu changed daily dependent on the ingredients I found at the Union Square Farmers Market that day.

Over the years I was involved in a few East End Eateries, one being Banzai Burger on the Napeague Stretch and a pop-up Japanese summer spot on Shelter Island called Katana. Both were multi concepts Japanese Driven.

After a stint out West, I took my newfound food philosophy and started my own catering company out East until last summer when I decided to buy a farm in the Hudson Valley and grow my own Japanese specialty vegetables.

Over my 20+ summers in the Hamptons I was fortunate to meet many amazing chefs and many great farmers. I have worked with many hand in hand and have used local ingredients strictly for all my clients and events.

One of my favorite farm stands during the summer is the Babinksi Farm stand in Sagaponack (not to be mixed up with the Babinski Farm Stand in Watermill). Same name, but unrelated. Babinski in Sagaponack is run mainly by Andy, the patriarch, and has an ever-rotating seasonally dependent selection of local vegetables

equic apmag.com

ABOVE: MATT Y BOUDREAU OF THE PRESTON HOUSE’S PRIME STRIP STEAK; MIDDLE: PETER AMBROSE, MEAT FRESH OFF THE GRILL; BOTTOM: ERIC MILLER ADDING THE FINISHING TOUCHES

SUMMER 2019 ISSUE

and fruit. That counts for all farm stands by the way. Of course, they will sell other items during the summer, which they source from other farmers on Long Island.

Edible East End is a great source if you want to f ind out what’s available at the time depending on the growing season.

Another favorite of mine is the Fairview Mecox Farm owned and run by the Ludlow Brothers. Here you can fi nd anything, and I like the one-stop-shop possibilities.

They also bring in amazing grass-fed meats from one of their cousins upstate and they have amazing gluten free natural ice cream. Did I mention the pies?

Anyway, there is an abundance of fresh ingredients available at a lot of farm stands. Keep in mind it takes time to get to each of them during the crazy summertime traffic. Hence, my preference of visiting some that have a good variety of product. Another favorite spot is the Amagansett Farmers Market which has been there forever. We used to get lunch there during the Pac East times. There you have local produce and gourmet items and the lunch sandwiches are divine.

If you’re already out that way, a must stop is the Aquaculture Fish Farm towards Lazy Point on Cranberry Hole Road. You’ll be able to pick up some of the freshest f ish in the East End along with some Goose as they also have geese pens—this is an interesting combo, but a very symbiotic relationship. They’ve been farming f ish since 1974. The cool thing there is you can bring a bottle of rosé and order some fresh take-out and then truck your goodies home that you want to cook.

It’s an absolute must stop—but beware— this is not your white cloth Hamptons fish market; this is a very relaxed, casual place.

Think f lip-f lops and shorts, also a great bike ride coming from Amagansett, but watch out for the ridgebacks!

If you’re headed to the North Fork there is one farm I really like because they specialize in Asian vegetables and I used to shop there for my Shelter Island pop-up Sushi bar. They’re called Sang Lee Farms in Peconic and they are lovely people. If you’re over that way you must stop at Southold Fish Market which in my opinion is the best fi sh money can buy unless you catch it yourself or are friends with some of the pirates in Montauk.

Tell Charlie I said hello.

(Continued)

EQ.

81

HAMPTONS FOOD SCENE

FOOD & DRINK

seven questions with Alex Lehnen

I would like to introduce to you a handful of local chefs who represent the food scene Out East properly and are taking food and our locally grown produce to the next level. They are honest, professional and innovative chefs and I would highly recommend trying out their amazing dishes when you’re out East this s ummer. Maybe I will see you there. Enjoy and Bon Appetit!, Alex Lehnen

Photo Credit: Noah Fecks, wwd.com

1

What’s your favorite vegetable to use and why?

PETER A MBROSE:

Great local late summer corn. For me I can make a meal on it. When cooking for others, it can be a great relish, an amazing side dish or the fresh pop in our Striped Bass Provencal or a similar dish.

My favorite vegetable is summer corn. There are so many ways to use it—in soups, bisques, velouté, salad and salsa to name a few.

PETER A MBROSE:

I’m working on a Bulgogi Seared Tuna which will feature a Sesame Crusted Seared Tuna with a Bulgogi Sauce, Gochujang Peanut Sauce, Grilled Corn and Kiwi Relish served over sticky rice charred on the grill.

Eric Miller Silver Lining Diner silverliningdiner.com

ER IC MILLER: Photo Credit: chefpeterambrose.com

M ATT Y BOU DR E AU:

Celeriac aka celery root can be used so many ways. It’s great raw in slaw, boiled and smashed or crispy, fried in extra virgin olive oil, and for those healthy minded folks, it’s allowed on most diets.

2

What local farm(s) do you work with?

I typically work with Balsam Farms, Mecox Bay Dairy, Wells Pig Farm, Pike Farms and Satur Farms.

ER IC MILLER:

COLIN A MBROSE:

My new summer dish? Stay tuned.

Last year it was a sweet corn and Amber Waves Farm wheat berry dish, it’s on my blog at estias.com.

M ATT Y BOU DR E AU:

4

We like Multi Aquaculture Systems which does a fantastic job at growing and raising. Paulette Satur of Satur Farm is an old friend. We also work with Balsam Farms and Wesnofske Farm.

What do you eat for breakfast?

PETER A MBROSE:

COLIN A MBROSE:

EQ.

A new dish, soft shell crabs brined in buttermilk, rolled in corn flour, and served with a corn-chili and tomato salsa, accompanied by a tomato water vinaigrette.

New menu; I took my yearly pilgrimage to Spain and drew up a new dish from my travels. Charred Pork Steak, brushed with harissa topped by a lardon, side of watermelon radish and baby arugula salad with a lime mustard dressing.

PETER A MBROSE:

82

Browder eggs rock! Paulette Satur is a green goddess, Ian at Balsam Farms is a genius, Goodale Farm in Riverhead has epic dairy and the Corwin family at Crescent Farm produces the best Long Island duck.

What’s your new summer dish for this season?

COLIN A MBROSE:

My neighbors Bette and Dale have been providing local organic food for the plates at Estia’s Little Kitchen for more than 10 years. I also work closely with Marilee Foster from Foster Farm in Sagaponack.

That said, Scott Chasky from Quail Hill is my guiding light. As my best gardening advisor,

M ATT Y BOU DR E AU:

3

ER IC MILLER:

I love sweet corn. Roasted it gets even sweeter, works well with eggs, chicken, fish, in soups and salads. I had a counter customer named Dan. He was a dinner regular for ten years and called me the King of Corn. I liked that.

Scott and I have conceived more farm-born events than anyone else I know of, it started in 1992 at Estia in Amagansett. I’m blessed to have friends like these farmers.

Peter Ambrose Endless Summer Events Catering chefpeterambrose.com @chefpeterambrose

SUMMER 2019 ISSUE

For breakfast, I usually craft myself avocado toast—sourdough bread, avocado, and LnW Market’s Green Siracha with a Sea Salt topping.

ER IC MILLER:

When I get the chance to eat breakfast, it’s buttermilk pancakes and real Vermont maple syrup; but mostly it’s just coffee.

equic apmag.com

FOOD & DRINK

6

COLIN A MBROSE:

Breakfast is generally a few corn tortillas with brown rice, red beans and adobo pork, finished with a scrambled egg and some of Juana’s avocado salsa.

If you could change anything Out East that would help your food movement what would it be?

M ATT Y BOU DR E AU:

5

Name three East End chefs that you respect for their style, skill and philosophy

PETER A MBROSE:

I was on vacation in Seaside, FL last year and loved the fact there were food trucks intermingling and coexisting with great restaurants. I believe food trucks would not hurt restaurants but rather create towns that would be food destinations and get people out more often. “I am going to Sag Harbor tonight to eat, not sure where, not sure what, I just know that Sag Harbor has a great food scene.” I would also love to have a food truck and be successful with it, but I do not think current laws allow it.

edibleeastend.com

I go light on breakfast. I drink Bulletproof coffee and have a hard-boiled egg, avocado with lime or an omelet with greens.

PETER A MBROSE:

ER IC MILLER:

Every one should use fish that is local and sustainable, and do their best to support the local bay men/fishermen and farmers.

COLIN A MBROSE:

I get to change things in my garden every summer as I choose what seeds to plant and where to plant them. Changing anything else on the East End would be crazy, it’s changing all the time without my help. Best for me to stay centered and accept the things I cannot change.

Colin Ambrose (no relation to Peter) Estia’s Little Kitchen estias.com @chefambie

ER IC MILLER:

I love Colin Ambrose of Estia. Joe Realmuto of Nick and Toni. Laurent Tourondel of BLT Burger and Sag Pizza.

COLIN A MBROSE:

My pals, Jeremy Blutstein, Joe Realmuto and Jason Weiner like to make human pyramids; it’s always a pleasure to take a position. I’m indebted to them as they help me when eventing (both on-site and off) gnarly. Another stand-out guy, Dennis MacNiel, has been a huge supporter since the early 1990s. He has an Estia brunch dish “Den Den’s” named in his honor.

equic apmag.com

Affordable housing. We lose so much by not having our employees and their families able to live near their workplace. People who work in this community should be able to live in it. It would create a better sense of environment, connection and community.

7

You’re shipwrecked on a deserted island and you grabbed three items last minute before your ship sank. What are they? (knives don’t count) PETER A MBROSE:

If I were shipwrecked, a fishing pole, a 50-degree wedge and a golf ball with a cover that could hold up.

ER IC MILLER:

Three things… I’m stopping at one, my wife.

COLIN A MBROSE:

M ATT Y BOU DR E AU:

Terry Hardwood, my mentor, took me from a line cook and gave me my first sous chef job and helped mold me into the chef that I now am. Sam McClelands bring his A-game every day. He has some of the best fish dishes on the East End. Michael Rossie. He’s hands down the best chef on the East End in my opinion.

M ATT Y BOU DR E AU:

Photo Credit: Daniel Brennan

Jeremy Blutstein. who takes localism to a whole other level. He has a commitment to localism that requires an intense level of dedication to hard work that he has committed to along with his entire staff. They are working harder on new flavor combinations and profiles that are bold, imaginative and created without fear of failure. Also, Gretchen Mesner.

Just a kick-ass Chef, who has pumped out great food from one of the busiest kitchens in all the Hamptons. An individual who has persevered through some life curve balls to continue to kick ass in the kitchen. And Joseph Realmuto. A friend to all in the culinary community.

Someone we can all aspire to match in his demeanor and respect which he shows to his colleagues, employees both front and back of house and also his loyal clientele. A chef family tree that Ancestry. com would have a hard time following.

Matty Boudreau The Preston House & Hotel theprestonhouseandhotel.com @chef_matty_boudreau

SUMMER 2019 ISSUE

Shipwrecked, there would be a rigged fly rod on the deck so that would be the last thing I’d grab before jumping. It would be nice to have a hat and a stand-up paddle board, it would be easier to spot the fish on.

M ATT Y BOU DR E AU:

A cast iron lodge pot, a box of thin mints and a really nice bottle of red burgundy. ■

EQ.

83

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