Crains New York - January 28, 2013 - (Page 21)

REAL ESTATE DEALS Jefferies is latest big firm to stay put Jefferies’ decision follows similar renewal deals structured by other large banking companies. UBS, for instance, renewed a 900,000square-foot lease in recent months at 1285 Sixth Ave. at rents in the $80s per square foot. Morgan Stanley also decided to stay put at 1 New York Plaza in lower Manhattan, signing a roughly 1 million-squarefoot deal there last year. Jefferies will pay rents that average $90 per square foot for about 350,000 square feet lower in the building and $103 per square foot for 112,000 square feet on the five upper floors it will continue to occupy. Dale Schlather from Cushman & Wakefield brokered the deal. —daniel geiger A fter months of speculation that Jefferies Group Inc. might move to a new building either on the West Side of midtown or at the World Trade Center site, the investment bank has instead become the latest in a series of such firms to opt to renew its lease and stay put. In Jefferies’ case, that meant signing a lease for 450,000 square feet at 520 Madison Ave. The deal comes in two pieces within the 43-story, 1 millionsquare-foot tower: a large block of space on floors two to 13, and a smaller but pricier space on floors 16 to 20. It will add 15 years to Jefferies’ current lease, which is set to expire next year. The deal reflects the caution financial firms have shown in spending capital on real estate at a time when many in the sector are contending with increased regulations and lowered revenues. TriBeCa baby boom draws retailer Inspired by a baby boom in TriBeCa, a three-year-old retailer is pouncing. My Little Sunshine, which bills itself as a “one-stop shop for children’s clothes, toys and haircuts,” has signed a 10-year lease for 725 square feet at 145 Hudson St., at Hubert Street. The asking rent was $107 per square foot. It will be My Little Sunshine’s second Manhattan location and will open for business in mid-March. The retailer’s first store is in Chelsea. “TriBeCa is just booming with kids the way the Upper West Side used to be,” said Roxanne Betesh, the Sinvin Real Estate broker who represented landlord Kaufman Hudson. She noted that although there are some retailers in the neighborhood that cater to children, many of them are below Hubert Street.“This is a good store to fill the northwest portion,” she said. My Little Sunshine was represented in negotiations by Danny Figotin, a broker with Okada & Co. He is also married to one of the shop’s owners, Tara Figotin. —adrianne pasquarelli 32 Old Slip lands another big tenant The U.S. Census Bureau has inked a lease for 40,000 square feet at 32 Old Slip in yet another sign that the building,just below the South Street Seaport, is still a draw after being pounded by Superstorm Sandy.The bureau will pay in the low $40s per square foot. The lease is the second to get signed at the 36-story, 1.1 millionsquare-foot building in recent weeks. Bruce Surry, a broker at CBRE BARE BONES 100 W. 33RD ST. 4 W. 58TH ST. 16 W. 22ND ST. ASKING RENT; TERM: Undisclosed SQUARE FEET: 62,000 TENANT; REP: HP Girlswear/BB Active; Arnold Gamberg of Murray Hill Properties LANDLORD; REPS: Vornado Realty Trust; inhouse representation by Craig Panzirer and Jared Solomon BACK STORY: The retailer signed a lease for space on two floors of the Herald Square building that houses the Manhattan Mall, according to The Commercial Observer. ASKING RENT; TERM: $95 per square foot; 10 years SQUARE FEET: 61,000 TENANT; REP: Bruno Magli USA; Michael Higgins of Jones Lang LaSalle LANDLORD; REPS: Solow Management; Scott Panzer and Steve Rotter of Jones Lang LaSalle BACK STORY: The Italian shoemaker signed a lease for the entire 10th floor, according to The Real Deal. ASKING RENT; TERM: $38 per square foot; 10 years SQUARE FEET: 13,000 TENANT; REPS: Rebecca Minkoff; Alan Wildes and Ethan Silverstein of Cushman & Wakefield LANDLORD; REP: Meysar Realty Group; Barbara Yagoda of Newmark Grubb Knight Frank BACK STORY: The handbag and accessory designer signed a lease for office and showroom space on the seventh floor of the 12-story building, according to The Commercial Observer. Group Inc., represents 32 Old Slip’s landlord, Beacon Capital, in leasing deals at the property. The Census Bureau was represented by brokers at the General Services Administration.The term of the lease could not be determined immediately. —daniel geiger SMALL BUSINESS Chief technology executives feel the love BY ANNE FIELD R ay Madronio has faced plenty of challenges while launching his 18month-old startup, Local Bigwig, which provides a booking platform for furnished monthly rentals and extended-stay hotels. One of the greatest has been hiring a chief technology officer. “Finding a CTO arguably is the hardest part of starting a tech business,” said Mr. Madronio, whose four-employee, Manhattan-based company has under $1 million in revenue. To find someone, Mr. Madronio became a recruiting machine, doing everything from attending meetups, where techies hang out, to cultivating computer-science students at local graduate schools. Finally, a tennis buddy introduced him to a friend. They clicked, and Mr. Madronio brought him on as CTO and an equity partner. (Recently, the recruit, who had worked for a major computer company on the side, took a full-time position there and scaled down his role at the startup.) An ever-growing number of New York City-based digital startups face the same kind of scramble as they search for CTOs to take their firms to the next level. It’s not just a matter of finding a brilliant technologist. Startups that want to build staying power need a CTO who can both lead their technology development teams and advance their business agendas—a unique combination of skills that is hard to find. And young Web 2.0 firms are not just vying for talent with each other. They’re also up against deep-pocketed hedge funds and financialservices companies—and the New York offices of Google, Microsoft and Facebook. Nonstop recruiting “The process is difficult because of a combination of factors: all that competition, along with the limited resources of most startups,” said Owen Davis, managing director of NYC Seed. CTOs make $225,000 at some larger companies, according to Tim Mullane, regional vice president at staffing firm Robert Half Technology. At small firms, they might make $150,000, if they get a salary, plus equity. TALENT SCOUT: Patrick Ambron spent months courting a seasoned CTO for his startup, BrandYourself.com. five workers in India,with no success. Then he was introduced to Mark Herschberg, a seasoned expert interested in working part-time for a few companies. After close to three months of wooing Mr. Herschberg, Mr. Berger hired him part-time. Many entrepreneurs should brace for months of persuasion efforts. Patrick Ambron and Peter Kistler realized in 2011 that it was time to find a CTO for their twoyear-old Manhattan startup BrandYourself.com, which helps people improve what appears when someone PROJECTED Googles their INCREASE in CTO name. It took salaries, 2012 to 2013 about seven Source: Robert Half months of Technology searching—including an intense four-month courting period—before they lured Dan Chote, who was previously vice president of engineering at Match.com. The nine-employee company has between $500,000 and $1 million in revenue. “It was a matter of getting him excited about the challenge,” Mr. Ambron said. Ⅲ 3.9% buck ennis Startups make all-out effort to recruit sought-after pros in a competitive market For that reason, many startups are engaged in a constant struggle to locate and retain qualified CTOs. One tack is to make recruiting a way of life. Seth Bannon,founder of Amicus, a profitable two-year-old startup in Manhattan that provides efficient ways for nonprofits to raise money, hired a CTO a year ago, after a fivemonth search. Mr. Bannon credits his relentless focus on the task,which meant doing everything from tweeting about the company to raising the topic with everyone he met. “It has to be your top priority,” said Mr. Bannon, who recently raised $3.2 million in funding. Months of persuasion In some cases,startups end up hiring a part-time CTO. Phil Berger, founder of 18-month-old J.A.B.Talent—which runs IAmTalent.com, a new Manhattan-based hub for independent singers, actors and other artists—spent months looking for a CTO for the firm, which employs To sign up for Crain’s SMALL BUSINESS newsletter, go to www.crainsnewyork.com/smallbiz. January 28, 2013 | Crain’s New York Business | 21 http://www.BrandYourself.com http://www.BrandYourself.com http://www.Match.com http://www.IAmTalent.com http://www.crainsnewyork.com/smallbiz

Table of Contents for the Digital Edition of Crains New York - January 28, 2013

Crains New York - January 28, 2013
In the Boroughs
In the Markets
The Insider
Business People
Opinion
Greg David
Alair Townsend
Report: The Business of Sports
The List
Classifieds
Small Business
For the Record
New York, New York
Source Lunch
Out and About
Snaps

Crains New York - January 28, 2013