Crains New York - December 10, 2012 - (Page 3)

IN THE BOROUGHS BROOKLYN New Y will bring lift to Coney I. Residents hope facility helps buoy storm-hit area BY ADRIANNE PASQUARELLI In Coney Island, an area hit hard by Superstorm Sandy, there was at least some good news in recent weeks. The opening of the area’s first YMCA is still on track—though with a delay of as much as four months. “We are 100% committed,” said Jack Lund, chief executive of the YMCA of Greater New York. “The Coney community will be facing much more difficult circumstances, and the Y can really play an important role in helping to stabilize it.” The new Y, now slated to open in the second half of next year, has been tailored to the needs of the 50,000 local residents it’s expected to serve. The 44,000-square-foot facility will boast two pools—one for families and one for laps and lessons—plus a gym and a fitness center with FEET OF WATER exercise classes flooded Ocean to help address Parkway the area’s high rate of diabetes. Among FEET OF SAND those looking piled on the forward to its arboardwalk rival is Kimberly Perkins. When she moved to Coney Island MONTHS’ DELAY in YMCA two years ago construction with her 1-yearSources: Reports and old son, Alexi, YMCA she didn’t think much about swimming classes and basketball courts. But with Alexi now 3, she’s increasingly aware of what’s missing in the area and why she is so happy to see progress on the construction. “I didn’t know what it was going to be, and when I found out it will be a Y, I was ecstatic,” said Ms. Perkins, who is hoping Alexi learns to swim and play basketball. In the wake of the storm, Coney Island is more in need of a Y than ever. At present, the closest one is in Park Slope, 16 subway stops away. The Y’s construction is part of a broader effort to revitalize Coney Island kicked off by the city nearly a decade ago. Its aim is make improvements to the area’s commercial core as well as its surrounding lowand middle-income neighborhoods. For openers, the city rezoned 17 blocks to allow for expanded retail The crowdfunding solution When government is slow to aid biz hit by Sandy, owners turn to the Internet BY ANNIE KARNI Restaurant owner Victor Chan was preparing to throw a party Dec. 1 to celebrate the six years since he bet the house to open SUteiShi, a sushi joint on Peck Slip. Instead, his lower Manhattan eatery entered its fifth week of being shuttered since taking on six feet of water during Superstorm Sandy. “Everything was destroyed—it was a total loss,” said Mr. Chan, who, like many owners of stormdamaged small businesses, lacked funds to rebuild and pay rent and wages. “I put in all of my applications for loans from the Small Business Administration and the city and haven’t received a nickel.” On the advice of a friend, Mr. Chan turned to the Internet.Within days of launching Help SUteiShi’s Rebuild on the crowdfunding site Indiegogo.com, he had sold $20,430 worth of future meals and had 11 more days to reach his $50,000 goal. If he hits that number, Mr. Chan will pay the website a 4% commission. If he falls short, he will still keep the funds, but the fee will be 9%. For business owners like Mr. Chan still struggling after the storm, the Internet has proved a nimbler way to generate cash flow than pursuing government loans. “The money from Indiegogo still won’t cover everything, but it will help,” said Mr. Chan, who has resumed takeout service. “I’m trying to hold onto five of my employees, and that will help toward paying their salaries.” Since the storm battered New York on Oct. 29, the U.S. Small Business Administration has issued 38,618 applications for business loans across the state, received 1,169 back and approved 72 for loans totaling $7.1 million, a spokeswoman said. Meanwhile, 463 businesses applied for emergency loans from the city, according to the Department of Small Business Services, which has approved more than 100, totaling nearly $2.4 million. But on the Internet, millions of dollars have been flowing to restaurants, animal shelters, designers, ice cream parlors, manufacturers and others who need money now. Indiegogo founder Slava Rubin estimated that his site raised more than $2 million in five weeks for Sandyrelated campaigns. See CROWDFUNDING on Page 7 buck ennis STARTING OVER: The $20,430 SUteiShi’s Victor Chan has raised online has put cash in his employees’ pockets. SANDY’S IMPACT 5 2 2-4 Condo market reawakens Bankers, buyers and developers all betting the market is shifting to owning BY DANIEL GEIGER After five years of little more than idling, the city’s condominium industry is throttling back to life. In recent weeks, Zeckendorf Development broke ground on a $500 million luxury tower on a long-stalled parcel across First Avenue from the United Nations, and down in TriBeCa, work restarted on another half-billion-dollar project, an 80-story tower at 56 Leonard St. Smaller sites outside Manhattan are also stirring to life. In Williamsburg, Brooklyn, Chinabased Xinyuan Real Estate announced plans to build 200 condos near the waterfront, while a few miles to the south, the Carlyle Group and a partner unveiled plans to build about 200 apartments, plus a small hotel, on the edge of downtown Brooklyn. “We’re seeing a new surge in condo development,” said Pamela Liebman, chief executive of residential brokerage the Corcoran Group. Prompting the urge to get projects lined up and shovels in the ground is a greater availability of construction financing and rising demand from buyers confident that with condo prices having bottomed KEYED UP: Zeckendorf will build a $500 million spire across from the U.N. out and rents setting new highs monthly, this a good time to buy. “People understand that with low interest rates and the way rents have gone up to extraordinary levels, it makes more sense to be a buyer than a renter right now,” said Joseph Cohen, a principal at East River Partners, which a few weeks ago began converting two small rental buildings in Brooklyn’s Carroll Gardens and Park Slope into condos. Signs of that rebound in buyer interest are clear. Sales in Manhattan in the third quarter soared 35% from the same period a year earlier, according to Corcoran. “That’s a very large increase,” said Ms. Liebman. Out on the streets, the hunger to See CONDO MARKET on Page 7 See NEW Y on Page 22 December 10, 2012 | Crain’s New York Business | 3

Table of Contents for the Digital Edition of Crains New York - December 10, 2012

THE INSIDER
IN THE BOROUGHS
IN THE MARKETS
SMALL BUSINESS
BUSINESS PEOPLE
OPINION
GREG DAVID
REAL ESTATE DEALS
REPORT: PHILANTHROPY
THE LIST
CLASSIFIEDS
FOR THE RECORD
NEW YORK, NEW YORK
SOURCE LUNCH
OUT AND ABOUT
SNAPS

Crains New York - December 10, 2012