Judith Fleischner

Nov2002Empire.
qxd 10/10/2002 8:21 PM Page 1
Real Estate Issue

BUSINESS FWD 10 .02
Living by the
Square Foot
The Prime Movers Comment
on the State of NY Real Estate
Cable Goes
Wideband and Wireless
8 Tips For Holding
Ground in a Downturn
Computers Get Aby Rosen is Taking
the Long View on
Ultra Personal NYC Real Estate
MONEY
POWER
INNOVATION
$3.95
IDEAS
Nov2002Empire.qxd 10/10/2002 8:21 PM Page 2
INSIDE FRONT COVER

AD
AD
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CONTENTS
Real Estate In This Issue

In this month’s issue 7. Hazelden Finds Value in Recovery
we see the skyline
of New York being 9. A High Rise Safety Façade
redrawn, and the business of real
estate along with it. On page 12 we 8. Bridge Loans Go Residential
talk to the “next king of real estate
in New York” Aby Rosen and learn 10. Re-Insurance Woes for Real Estate
of his passion for architecture. On
12. Aby Rosen – Real Estate Mogul
page 8 we see how Bridge Loans are
spanning the commercial real estate 14. Credit Card Employee Benefit
world across to residential.
16. Pulse-Link – Cable Goes Wideband
18. Turnaround – Down-Market Aid
19. RX Centric – BioTech Success
20. Wi-Fi Dominant
22. Computer Race Gets Personal
BUSINESS FWD 23. First Avenue Develops
24. A Habitat for Stars
25. Office Market – No Rise In Sight
HouseHold Bandwidth 35. Closet Rentals – Luxury Storage
Can there be a unified solution for
delivering high-bandwidth voice,
video and data around your home
and office? On page 16 we see how
Places To Go
one company plans to do so through 27. City Club Hotel – Stayin’ Alive
Cable using Ultra WidE Band. On
page 20 we ask if Wi-Fi could be 28. Treatment - SkinKlinic
the Napster of the ISP business.
30. On the Go – Spa Passport
Technology 39. Travel – Como luxury
Gets Personal
Can computing be
redefined and become Standard Issues
even more personal? On page 22
we see one company’s mobile solu- 4. Letter From The Editor
tion – the paperback equivalent of a
notebook. Later, on page 32, we 6. Legal Column
MONEY look at some of the latest technology
for home and office. 31. Motors – Harley Heaven
POWER 32. Technology - Personal and Pro
36. Fashion – Suit Yourself
INNOVATION 40. Empire’s Back Page Column
IDEAS Cover photo of Aby Rosen by Jesse Harris.
Empire / November 2002 3

FROMWHERE I SIT
By Chris Travers
Photo by Jesse Harris

BUSINESS FWD Volume 1, Number 4
The Dark Side
Editor in Chief:
Chris Travers
Empire Magazine
580 Broadway, Suite 700
of Digitization
New York, NY 10012
Creative Director:
David Rudzinski Telephone:
(212) 774-6168
Art Director: Billions of dollars in assets are being plundered from
Daniel A. Dilks Fax: American companies and many of them seem oblivious to
(212) 774-6169
Production Coordinator: www.empiremedia.com the problem or how to prevent it.
Monica J. de la Cerda It’s not the laptops that get lifted after-hours, it’s not
Letters to the Editor:
letters@empiremedia.com
the pens that go home in the pocket each night, it’s not
even the truck-load of floor tiles that wind up being
Photo Editor: Editorial:
Güler Ugúr fenced under a bridge in Bayonne, it’s knowledge. It is
editorial@empiremedia.com
knowledge of your customer lists, what they pay, how you
Photographers: Advertising:
Jesse Harris, Paul Forsman, make your products, how you make your margin, what
sales@empiremedia.com
Matt Peyton, Kate Ayrton you are designing for your next release and even how you
Associate Fashion Editor:
Business Development: see the future. The fact that this knowledge is intangible,
bizdev@empiremedia.com
Katherine Manderfield living in ones and zeros, seems to make it less worthy of
Contributing Editors Subscriptions: protection even to the owners who stand to lose most
and Columnists: subscriptions@empiremedia.com when it is copied.
Knut Wöhncke, Claudette Hayle, Empire Magazine is a publication
Jaan van Valkenburgh, Keith
For all that the electronic information age has given
of Empire Media, Inc.
O’Brien, Dominic Basulto, Judith us – convenience, immediacy, efficiency of distribution –
Fleischner, Michelle Savage, Ben Empire Media, Inc. is a wholly
owned subsidiary of Empire
it all turns to work just as effectively against us when
Zackheim, Lurie Silverman, Mark
McCord, Susan Friedman, Media, Inc. being attacked. This is the dark side of digitization.
Bernard H.Yee, Alexandra Jay Ehrenreich, Senior Partner with
Chughtai-Harvey, C. K. McCabe, PricewaterhouseCoopers Cyber Forensics Practice, says
Tracey Porpora, Joseph C.
Panettieri, Brian Scott Lipton, many companies don’t seem to value their Intellectual
Christopher Kennedy, Bennett Chairman of the Board & co-CEO: Property until the worst has happened – when you are in
Voyles, Martha Hostetter, Anton
Malko, Seth Kaplan, Sandy
Peter A. Bordes, Jr. litigation or your competition has it.
Kobrin, Jean-Louis Ecochard, Leo Vice-Chairman & co-CEO: PricewaterhouseCoopers in conjunction with the US
Jakobson, Brian O’Connell, Peter Chris Travers Chamber of Commerce and the American Society of
Patton, David Lubin, Sonny
Chandler, Dan Epstein No part of Empire Magazine may be Industrial Security (ASIS) released details of a survey on
reprinted in any form by any means IP theft which showed the enemy is not at the gate, it is
without prior written consent of
Empire Media, Inc. All unsolicited
already inside:The main threat is from employees – either
Executive Vice President: editorial materials become property after they leave, or even while they are still at your desk.
Mamoonah Yaqub of Empire Media, Inc. and may be But because it is so often an individual or personal
used without consent of sender.
Sales & Marketing: Empire Media, Inc. is not responsi- act by a disgruntled or ambitious employee, companies
Mark Martiak, Sean Smith, ble for the care, safety, and/or return tend to try to plug the hole and shrug their shoulders.
David Sherman of any unsolicited editorial materials. The Secret Service is supporting the survey group in
Empire Magazine is a registered
Account Executives: trying to raise awareness of the problem - and saying
trademark logo of Empire Media,
Jean-Louis Ecochard,
Jean Hamilton
Inc. and may not be reprinted or don’t just remediate, but investigate and prosecute.
used without prior written consent
of Empire Media, Inc.
“We’re interested in the public trust, “ says Bob Weaver of
Technology and
Information Systems: Empire Magazine is published eleven
the Secret Service, “we don’t want to see the erosion of
IP2M times a year. Paid subscription rate is confidence in e-commerce, banking and finance.”
$21.95 annually. For reprint infor- Ehrenreich cautioned: “How you destroy that data is
Technology Coordinator:
mation please contact PARS
Cam Bevis
International Corp. PARS is located just as important as how you protect it.”
Public Relations: at 102 West 38th St., 6th Floor, So send those data files to the dark side fast, before
RLM PR New York, NY 10018 and can be your business is dragged there first.
reached by phone at (212) 221-9595
Legal Affairs: or by email at empirereprints@
Warshaw Burstein Cohen LLP parsintl.com.
Back Issues of Empire Magazine
are available for $5.95 per issue.
Please call (212) 774-6168 for further
information.

November 2002
AD
COLUMN
LEGALVIEW
The BBX - What It Means For You

By David Lubin, Esq.
If you have any connection with the Over- Annual Shareholder Meetings – The BBX will
the-Counter Bulletin Board, whether as the require that annual meetings of shareholders
Listing on the issuer itself, as a service provider, a broker- and the solicitation of proxies be held within
dealer or otherwise, by now you are familiar 12 months of the end of the first fiscal year
BBX is not with the proposed BBX stock exchange. after the company becomes listed. At least
Although the BBX is designed to improve one third of all shareholders will be the
automatic the trading environment for the small cap required quorum.
market, it is predicted that approximately Shareholder Approval – The BBX will adopt
for companies 30% of the current Bulletin Board compa- current NASDAQ rules requiring sharehold-
nies will not qualify for BBX listing. Listing
currently listed on the BBX is not automatic for companies
er approval of stock option plans under
which stock can be acquired by officers or
on the OTC currently listed on the OTC Bulletin Board – directors. Similar approvals will be required
approval of the listing application must be for share issuances of 20% or more during an
Bulletin Board obtained from the BBX. If an application is acquisition or change of control.
not made or approval is not obtained, the
company will find itself down graded to the Audit Committee – Within 12 months of list-
Pink Sheets. ing, companies must have an audit commit-
The BBX is designed to create a trading tee, a majority of whose members must be
environment more akin to the NASDAQ independent directors. As with NASDAQ,
exchange than the current OTC Bulletin the company would use its audit committee
Board. The BBX trading system will be a to review related party transactions.
fully automated trading environment that Distribution of Reports – Companies must dis-
will “increase the speed, efficiency and qual- tribute annual reports to shareholders and
ity of execution” in the marketplace. make available quarterly reports upon
Although there are no financial or mini- request. The issuer’s Form 10-KSB can be
mum share price thresholds, a company used as the annual report.
must meet certain qualitative standards to be
Auditor Peer Review – All companies must
listed on the BBX. The annual listing fee is
engage auditors that are subject to peer
$5,000 for the first class of securities and
review consistent with the American Institute
$1,000 for each additional class.
of Certified Public Accountants procedures.
Listing Standards Listing application requirements will
Public Interest Standard include verifying that the company meets the
independent director and audit committee
Public interest standards provide the
requirements, a detailed description of all lit-
BBX with the discretion to deny listing or
igation, a list of all financing transactions in
delist an issuer to protect investors and to
the prior 6-months, and a copy of the busi-
protect the integrity of the market. With this,
ness plan and monthly financial projections.
the BBX has the right to deny listing or delist
The time-consuming application
a company when it feels that it does not
process, corporate governance requirements
deserve to be listed on the BBX.
and public interest standard will provide
Public Float/Shareholder Requirement obstacles to keeping a company listed and
Companies must demonstrate the exis- traded on the BBX. Ensuring that a compa-
tence of 100 round-lot shareholders and ny meets all the requirements and submits all
200,000 shares in the public float, thus the required documentation when the listing
assuring a minimum level of public owner- application is made will surely increase the
ship in the company. chances of the company obtaining its BBX
Corporate Governance Standards listing.
Independent Directors – The BBX will require
that companies have at least one independent
director.
6 Empire / November 2002

BUSINESS
An investment in life By Chris Travers
This may not be the first place you would that the cause of the employee’s problem is
consider for a ten-times return on your none of their business, just the effect on the
investment, but some companies like job assigned.
Chevron have found they saved nearly $10
for every dollar they spent on treating Tips on responding should be:
employees with substance abuse problems. • Advise the employee that their behavior is
This starts with the fact that employees being noticed and is affecting their work and
who abuse drugs and alcohol cost on average possibly that of others around them.
seven times the dollars on a benefit plan than • Advise them that they themselves need to take
other employees. Add to that the lost produc- responsibility to get themselves some help.
tivity, damage from accidents in the work- • Suggest places to go for the help.
place, lost contracts from botched work, Dr. Tramm says such places to suggest
petty theft and ultimately the cost of employ- would include Employee Assistance
ee replacement or re-training, and you can Programs, which many larger employers
see how the costs add up. offer Human Resources departments;
Studies show that 17% of employees will Community Health Center; Medical doctor
miss work due to some form of mental ill- (and perhaps ask for a statement that they
ness, of which drugs and alcohol abuse is a are doing OK.) Dr. Madeleine Tramm,
leading factor. Dr. Tramm says one of the major prob- Vice President,
But how should employers and col- lems is that drug and alcohol abuse is very Hazelden NY
leagues be reacting to what is a widespread often mis-diagnosed by doctors. Hazelden treatment center
problem in the workplace? specializes in training programs for physicians.
Dr. Madeleine Tramm, Vice President, She says the worst thing employers can
Hazelden NY treatment center, says it starts do is to try to solve the problem by punish-
with awareness of the warning signs. ment, or to resort to ridicule.
“Alcohol and drug addiction are called “This is a very serious but very treatable
the great impostors,” says Dr. Tramm. “They disease, and is a problem that creates a lot of
present in the medical office as depression, as anguish in communities,” say Dr. Tramm.
circulatory problems, as heart problems, as She says many jobs and environments
marital problems. So when it is not properly have been conducive
diagnosed you incur a heavy percentage of to drug abuse – noting Hazelden’s tips:
the benefits dollars.” the cocaine epidemic • Get the facts on addiction
She says signs employers should look for among Wall Streeters • Create a flexible work environment that is recovery-friendly
include: in the ‘90s. But
• Offer EAP (Employee Assistance Programs) to help
• Tardiness or Missed days employers have an employees grappling with addiction that is affecting their
• Long mid-day breaks obligation, sometimes performance
• Missed deadlines a legal one, to main- • Join forces: Create partnerships with other businesses
• Major drops in performance tain a drug free envi- to defray your EAP costs.
• Signs of fighting ronment. The Drug
• Petty thefts Free Workplace Act
“When you’re dealing with an addict requires that any company getting over
you are dealing with a need to purchase and $25,000 in Government contracts, for exam-
use,” says Dr. Tramm. “They’re always ple, has to report drug activity, or be subject
short of money and these habits can be to severe penalties.
quite expensive.” Hazelden, which has treated hundreds
“It’s a very stigmatized problem and the of thousands of individuals since 1949, offers
disease process itself is very shaming because a variety of education and treatment pro-
you wind up doing all kinds of things that in grams. It welcomes inquiries at 212-420-
your sober mind you would never do.You do 9520. Helpful material for employers and
very embarrassing things when you’re active employees can also be found on their website
in drinking or drugging.” http://www.hazelden.org.
“The main thing for employers and col-
leagues to do is not to play analysts or doc-
tors,” warns Dr. Tramm. She reminds them

FINANCIAL
sufficient cash to close without selling

their current residence.”
Schnall cautions, however, that
bridge loans are worth considering
only when the current home is easily
marketable. “What you don’t want is
to wind up carrying mortgages on two
homes for any length of time,” he says.
Like their commercial counter-
parts, residential bridge loans carry
higher interest rates than convention-
al mortgages and are costly on an
annual percentage rate basis because
of the fees paid to take out the loan.
Terms of a bridge loan vary. Some are
structured so that they completely
pay off the old home’s first mortgage,
while others pile the new debt on top
of the old. The term for a bridge loan
is usually for up to one year, and typ-
ically the loan is repaid from the equi-
ty proceeds on the sale of the current
home.
Bridge Loans Find Residential Niche Bridge loans are definitely not
for the distressed borrower.
Borrowers must be able to carry
By Marie Tupot Stock three loan payments: the old mort-
I
n today’s market, it’s not uncommon gage, the new mortgage and the
to find the perfect home before the bridge loan, until the closing on the
When a foreign national who owned two current home is sold, but why should old home.They also need substantial
condo units in Manhattan wanted to you miss out. Bridge loans, which are equity in their current home. Schnall
replace her investment with three new common tools in commercial real reports that the majority of The New
investment properties in a newly con- estate, are relatively rare in the York Mortgage Company’s bridge
structed condo, she borrowed a province of home financing. But with loan borrowers are moving up in the
$1,000,000 wrap bridge loan on her two homebuyers looking for greater flexi- market and want to quickly take
properties for sale. The two units she was bility in financing, programs allowing advantage of the current historically
selling were worth $2,200,000 combined, homeowners to tap into the equity of low interest rates.
and she only owed $400,000 on both their home before it is sold and Currently, bridge loans remain a
properties. She used the $600,000 in closed, are being well-received. niche product available through spe-
proceeds to go to contract on the new Earlier this year, The New York cialized lenders. Because of the con-
properties. Mortgage Company introduced a siderable upfront labor for such a
residential bridge loan program as an short-term product, bridge loans are
A Long Island borrower expected extension of their mort- usually not cost-effective for national
$450,000 from the sale of his single gage services. “We think lenders. Instead, a national bank may
family home selling for $570,000 to the time is right for this choose to extend finances through
purchase a $500,000 condo. He wanted product,” says Steven home equity loans. But when lenders
to borrow $200,000 on the new residence Schnall, president of The already have executed the functional
but had not yet found a buyer for his New York Mortgage documentation for the end mort-
existing home. The existing home had Company. “We’ve found gage, a bridge loan provides a valu-
a $49,000 first mortgage and a $22,000 that a significant per- able service. To date, The New York
second mortgage. He used a $370,000 centage of homebuyers Mortgage Company only has
bridge loan against the home he was in the current market processed bridge loans when they are
Steven Schnall face the prospect of doing the end mortgage.The compa-
selling to go to contract and paid off
the home’s first and second loans. missing the opportunity to buy the ny considers independent bridge
home they want because they lack loans on a case-by-case basis.


BUSINESS
Preparing for
the unknown
An expert view of ultimate cost over first cost
By Gordon H. Smith, P.E.
T here are two major building facade topics on

the mind of every real estate owner today:
• Asset Preservation - how can I maintain
my building at a reasonable cost and thus
sore and restored the
facade to its original aes-
thetic splendor at a sub-
stantial additional cost to
preserve its revenue stream for many years what mere asset preserva-
to come? tion would require. Thus
• Security - do I have the security to stop a the useful life of this
bomb from entering my building and what Architectural Landmark
does an explosion outside of my building was extended far beyond
nearby mean to my building? the expectations of its orig-
The first “Asset Preservation” is a con- inal owners and designers.
cept easily understood. Not so easily under- The second major con-
stood is how to go about it. The issue always cern is security. Most major
seems to be what will it cost me now or how hi-rise buildings throughout
little can I spend now? Rarely is the issue of the country have added new
long term or ultimate cost discussed. security measures relating
The Owners of Lever House, 390 Tower to access. With the collapse
Associates LLC, an entity comprised of of the Towers at the World
members of the Korein Family, and their Trade Center there has
present long term tenant, RFR Holdings been much discussed and
LLC, did understand the difference. The some published on the top-
The Lever House • 390 Park Avenue
building facade “looked good” in the mid to ics of collapse and escape
late 1990’s and passed the mandated NYC from a damaged building.
Local Law 10 inspection. However, close up While there has been some Photo by Jesse Harris
scrutiny from a hanging scaffold, including discussion, little has been published about the
several invasive probes, proved otherwise. effect of an explosion from any source near,
Beneath what appeared to be a pristine rather than within a building and the effects of
stainless steel outermost skin, the concealed an external explosion on the occupants of
carbon steel internal reinforcing members of buildings near by.
the curtain wall, originally constructed in the When hurricane Andrew hit south Mr. Gordon H. Smith, P.E. was
the Engineer responsible for
1950’s using the then available technology Florida several years ago it cut a swath of the investigation of and restoration
for corrosion for protection of carbon steel, destruction among buildings across of the facade of
was rusted and in some places crumbling Florida—-roofs blew off and glass blew out. Lever House. He
due to little or poor maintenance by a prior As a reaction Building Codes were rewritten has been involved
in the design and
long term tenant. As a result, an intensive for new building construction and several construction of
investigation, including the removal of all the years later all buildings were required to some of the first
stainless steel cladding was undertaken make modifications to comply. The develop- as well as present
resulting in removal and replacement or ment of the standards which were the basis buildings being
refurbishment of all the carbon steel with for these Code requirements were based on constructed in
accordance with
21st century protective coating technology reasonably statistically predictable condi- the Miami Dade County Hurricane
and replacement of all the glass. tions—-wind speed and known technology Resistance Code as well as the
The expense of proactively upgrading to while at the same time taking into effect eco- design and construction of buildings
21st Century standards, while monumental, nomic realities. which have been and are presently
being constructed to address an
was merely a fraction of the potential cost of Understanding and predicting the external “blast event”.
addressing the issues reactively due to an intensity of an explosion or “blast event” is
obvious, possibly catastrophic, failure in the a different matter. Understanding and
future. Ultimate cost won out over first cost. designing for the effects of an external
The proactive approach employed rec- “blast event” on a building facade is an
ognized that Lever House was a New York emerging technology and one that will
City Landmark and not only addressed affect the cost of construction in the future.
structural and weather integrity issues, but Studies and tests are underway. Standards
also erased the hodge-podge of remedial are being discussed. But, once again eco-
reglazing of the spandrels which was an eye- nomic realities must be considered.

BUSINESS
A Quiet Skyline Heralds an

Photo by Chris Travers
Skyrocketing Rates
Ominous Trend By Marni Halasa
of Terrorism Before Sept. 11th, tions have either been delayed or

coverage for damage cancelled due to the ongoing lack of
Insurance Stifle resulting from a terrorist terrorism insurance coverage.
Development attack was included in Although statistics about New
most property and gener- York City are not currently available,
in Manhattan al insurance policies. But Debra Beck of the New York Real
after reinsurers paid an Estate Board, said she has heard of
excess of $50 billion in numerous projects not going for-
claims from the attacks ward, such as one recent story from
so far, the industry dou- a broker who told her of postponing
bled or tripled the cost of plans for four skyscrapers in
liability insurance while Manhattan and one large building in
forcing property owners Chicago — nearly an estimated
to buy terrorism insur- quarter of a billion dollars in new
ance separately and at construction lost, she said.
astronomical rates. Currently, a number of indus-
According Eric tries are pushing for Congress to cre-
Schake, a managing direc- ate a system to help insurance com-
tor at Marsh’s Real Estate panies by limiting their financial
Practice Group, the world exposure. The Senate bill would
of commercial develop- require the government to pay
ment after Sept. 11th has 80 percent of the remaining claims
been a com- if the attack cost less
N
mercial “The lack of than $10 billion and
property 90 percent if claims
owner’s construction totaled more than
nightmare. $10 billion; the House
ew York City appears to have Before the attacks, goes deeper bill would require
bounced back to its usual bustle with
executives running to work, shops
explained Schake, an
owner with a building
than pure insurers to cover the
first $ 1 billion in losses,
open for business and tourists saun- worth $100,000 million economics” while the government
tering leisurely around Times only paid $50,000 for a would pay 90 percent
Square. But the absence of cranes, general insurance policy - Kathryn Wylde of additional claims.
forklifts and skeletons of half-built that included terrorism But some are not
steel structures along the city’s sky- insurance. That same waiting for Congress-
line — a trend that many real estate owner must now pay up to $1 million ional action: state regulators from
insiders blame on the skyrocketing for general liability insurance and, in Maryland ordered a London-based
rates of terrorism reinsurance — addition, must spend an extra $1 mil- insurer to continue to provide cover-
may signal an entirely different pic- lion for terrorism insurance. So even if age for Maryland properties,
ture of economic recovery. coverage is available, he said, it is often such as the Baltimore-Washington
“The lack of construction goes priced 10 to 20 times as high as the International Airport and the stadi-
deeper than pure economics,” original policy. ums at Camden Yards, and pay a
remarked Kathryn Wylde, president “The insurance gap is definite- $125,000 fine for dropping the state
of the New York City Partnership ly a problem for the big cities that after the September 11th attacks.
and Chamber of Commerce. “This have landmark buildings,” said Although the case is likely to be
affects New York City’s overall Schake, “but it’s spreading beyond appealed by the insurer, experts claim
growth and promise. Large buildings high-profile markets to smaller this highly unusual case may spur reg-
create epicenters of finance and cities like Cleveland, Pittsburgh and ulators to scrutinize policies to find
business. Without these structures, Des Moines.” ways to keep insurance firms liable
the city will have a difficult time The result, according to the for terrorist attacks claims. But many
attracting talent which could seri- Real Estate Roundtable, is that over say the best way to solve this com-
ously affect us in the long run.” $10 billion of real estate transac- pelling situation lies with Congress.


AD
BUSINESS
Leading New York developer, Aby Rosen, is taking the long view on
real estate and sees a measure of financial disappointment on the
horizon for some investors. Yet he exudes optimism for the city’s
architectural rebirth. His RFR Holdings own the architectural
groundbreaking Lever House and the Seagrams Building, and
is currently mid-construction on a site at 425 Fifth Avenue. Empire
Magazine spoke with Mr. Rosen at his Park Avenue headquarters,
the location of the first of his many U.S. acquisitions.
Aby
Rosen is real estate born and bred. He smart and sophisticated
took over his father’s portfolio of buyers.”
12 buildings in Germany when he Rosen said the
was only 18, but the roots go back biggest change in develop-
even further. His current partner, ment in New York has been the
Michael Fuchs, also from a Real entry of the types of groups that
Estate family, was first introduced are buying and holding
to him in Nursery school 40 years ago. the assets, notably the
“We learned the real estate trade as part pension funds and the
of our normal discussion and upbringing,” Real Estate Investment
says Rosen. “So when other people talked Trusts (REITs) all of
about fashion and film, we talked about real whom require a great deal
estate: this building, that building and the of due diligence.
tenants, so I always had the love for real “You’re dealing with
estate. I love bricks and mortar. I love the public vehicles that get scru-
way a new construction site looks and smells, tinized on a daily basis. You
how it’s being handled, the commotion, the know a private individual like
organizational charts. It’s all very methodical me or like the families that used
- if not it doesn’t go up.” to be active in the 50s, 60s or 70s
“But if you have the vision to see a piece and who built the majority of
of land and you have the vision to see a sky- Manhattan, are equally sophisticat-
scraper there…you’ve got see that how it fits ed but not as scrutinized as the
into the skyline especially in New York which REITs and the pension funds.”
is so skyline sensitive. Rosen says
“You’ve got to see they also have differ-
how it looks above the ent objectives in their
third floor. Because really investments: “They are
when we walk the streets – “You buy cheap looking at current yields
tourists are the only ones and returns versus the end
who lift up their heads, but assets in a game of how much will it
we are not building for
tourists we are building for
down market appreciate for a sale.”
“A building which
local people to live and
work there.”
and you buy has 15 or 20 institutional
leases that have very little
Rosen says the devel- great assets upside but very steady
opment deals require the cash flow, that is what
same methodical approach in an up those type of buyers are
as the construction itself: looking for. But for me to
“It’s just much faster.” market.” buy that just for return,
“If you are doing a – Aby Rosen that is not enough. If I
Photos by Jesse Harris
deal or if you get hold of a don’t get between 25 and

great asset, the speed that 30 percent yields on my
has to go into that is own structures I’m not
tremendous. You are deal- looking at it because it is
ing in the city here with a (Continued on page 35)
lot of shrewd and very

BUSINESS
By Chris Travers
Constructing the
Quality of Life

FINANCIAL
Credit card debt control
A Clear Benefit
For Employees
By Chris Travers
W
ith health insurance costs spiraling, it is diffi- “Many of us treat our cred-
cult to provide employees with attractive it card limits as extra income –
benefits that are not a significant drain of money that can be freely spent.
time and money. This is why so many Americans
E-Duction, backed by blue-chip finan- are drowning in debt.”
cial services investors like Capital One, “With the Clear card, they
MasterCard and First Data, has introduced get the use of a credit card with-
an innovative benefit that is simple to imple- out the fear of abusing it.”
ment, easily used, and best of all…free. Watkins says this is particu-
It’s a credit card for personal use that larly useful for people who may Kirk Watkins,
comes with 0% interest. Sounds risky? Not have bad credit ratings. E-Duction CEO
when you see that the concept is to take “It began with credit cards,
“Many of us treat repayments as direct payroll deductions.
It works like this:
then there were debit cards and check cards
– now we are moving closer and closer to the
our credit card • E-Duction connects the employer’s payroll
system to the Clear Card, as it is called. E-
source of the income,” says Watkins.
Initial deployments have been very suc-
limits as extra Duction has interfaces for all the major pay- cessful for E-Duction. Twelve employers,
roll systems and it can be installed in a day. representing about 12,000 employees have
income – money • The employee pays $29 a year for the card, offered the card and 2,000 have been issued.
which can be used at any of MasterCard’s E-Duction, with 50 employees, has been
that can be freely 24 million locations worldwide. They get a well financed by its backers – with over $26
spent. This is spending limit of 2.5% of their salary – thus
an employee earning $40,000 would have a
million having been invested thus far. E-
Duction makes money from the business by
why so many $1000 spending limit.
• Expenditures get paid back directly from
sharing the merchant payments with the issu-
ing bank, Capital One.The method is secure-
Americans are their payroll over four pay periods at 0% ly patented by them.
interest. Watkins says payroll deductions offer a
drowning in debt.” E-Duction CEO, Kirk Watkins, says the great opportunity for other payment plans
real benefit might not be just that an employ- that they and others might offer – such as
-- Kirk Watkins
ee gets the use of a credit card. mortgages, car loans, pet insurance or 529
“People regularly get themselves into college savings. He said this large shift in the
financial trouble with credit card debts – this electronic payments industry is enabling
is a way to help them spend responsibly,” employers to more easily augment the work-
says Watkins. life balance of their employees.


O nly
it ion r t)
Po s plied a
Foruse sup
(
TECHNOLOGY
The three biggest concerns of cable operators today: By Chris Travers

Are they:
J
• Do calf or gator skin shoes ust for the purposes of this channels or data wirelessly between
work best with prison stripes? article, let’s assume the sec- multiple set top boxes in the house.
• Does Jean Georges deliver to ond group is more broadly Eliminating the need to run cables
Sing Sing? accurate. What’s a cable guy between multiple TVs and set top
• Can the company chopper land to do? Added to this, now the boxes would create a major cost sav-
in the prison exercise yard? customers are sharing cable modem ings for the Cable Industry.
Or: access with their neighbors and even “We use the untapped ‘noise’
strangers through Wi-Fi transmit- layer of the cable wire to deliver up
• What channels and services will
I have to drop if the Government ters. They ponder: Is this why we to an additional 2 gigabits of data
insists I carry every HDTV spent billions of dollars upgrading downstream, and as much as 100
channel? the networks? megabits upstream per network
• How can it be me instead of Enter an interesting small com- node,” he says. This downstream
Microsoft that makes money pany called Pulse~LINK, that is amounts to the equivalent of 80
off wireless home networking working on technology that can send additional uncompressed HDTV
at the end of MY cable modem?
vast amounts of additional channels channels, or 300 additional chan-
• How can I sell Video On Demand and data down the existing cable nels of MPEG2, around 6 megabits
if Hollywood thinks my customers
are just going to pirate their pipe, very securely and then beam it each. The upstream opens the door
movies like they did to the around your home – all at very low to a whole new realm of interactive
music industry with Napster? cost. It’s enough to make our cable television possibilities.
NO BARS, NO WIRES, NO LIMITS C

Photos by Jesse Harris
guy reach for his Capex budget “There’s lots of technology for
again. And it’s legal. increasing cable bandwidth,” says
Pulse~LINK President Bruce Watkins. “We are not an either-or
Watkins says: “We are going out to proposition, as you look at those
the cable industry saying ‘we can other alternatives: Increasing range
give you massive new bandwidth of frequencies cable can use, com-
that allows you to increase revenues pressing, or alternative forms of fre-
and decrease expenses AND provide quency modulation. All these alter-
a level of content protection that’s natives work by essentially doing
never existed before.’” something with the existing fre-
The initial response from oper- quencies inside the cable. We don’t
ators, studios and hardware manu- use frequencies, but coexist with
facturers has been positive, of frequencies in the noise floor
course. Several have already come beneath. Implement any of them
to see the simulated cable plant and you can still use us too, is the
Pulse~LINK is working on technology (from head-end to customer prem- message.”
that can send vast amounts of ises) where Pulse~LINK is demon- Pulse~LINK was the first to
additional channels and data very
securely down your existing cable strating its proof of concept. Next introduce over-wire applications for
pipe and then beam it around your steps are to do a “real world” field Ultra WidE Band, as most others
home – all at very low cost. demonstration later this year or have been focusing on wireless
early next. Personal Area Networking, where
(Opposite page) Pulse~LINK’s
Bruce Watkins, president, (right) “We saw a real need for cable to devices such as computers, PDAs
and John Santhoff, founder/CTO, keep increasing its bandwidth, since and printers are connected at very
pause in their control room. the growth in cable has been from high speeds (outperforming
new services rather than new sub- Bluetooth and Wi-Fi by orders of
scribers,” says Watkins. magnitude.)
Pulse~LINK plans to use a To Pulse~LINK’s benefit, while
$10,000 piece of hardware at the regulators are slowly opening up the
head-end to pump Ultra WidE wireless spectrum to UWB, there are
Band data down the unused spec- no restrictions on putting it down a
trum of the cable wire, and then add physical wire, especially if it is shielded
a single $30 chipset in each set top as is all cable wire. Pulse~link’s over-
box to decode and transmit the
S Cable unbound
cable technology is, however, still without the race the camera angle from less than a billionth of a second.”
in the FCC’s regulatory approval. the driver’s seat of your favorite Watkins says few technologies can
“Once the chipset is manufac- drivers, do your own rewind and do so for more than two microsec-
tured, we’ll be perfect to roll out as replay of an accident or exciting onds before breaking up – and
people buy high definition TVs,” driving maneuver, and buy some impossible to do for a two-hour
says Watkins. “These customers will merchandise to have sent to your movie unless your chip has been
be paying for an upgraded service house – all from your couch while authorized. “Each chip will have an
and Operators are probably going to watching the event. The same abil- identifier, paired with a TCP/IPv6
have to send them a new set top box ity to pick camera angles and do address – bottom line, it cannot even
anyway.” He says they also have a your own replays would go for communicate without authoriza-
cheap add-on implementation where something like professional boxing, tion.”
the chipset sits in a ‘dongle’ between which practically created the But perhaps Pulse~LINK’s most
the existing box and the cable – it demand for pay per view. Of course, significant breakthrough of late has
could be mailed to the consumer for the time of maximum value for such come from its ability to demonstrate
a self-install, with the software content is while the event is live. very high bandwidth wireless LAN
upgrades being done remotely. Content protection for anti-piracy capabilities that will be seamlessly
“For Hollywood’s benefit, digi- is critical from a revenue stand- integrated with the same chipset used
tal rights management is at the heart point, and in the digital age DRM is to deliver massive new wired data into
of what we do,” says Watkins. the number one concern of Content the home through its UWB-cable
The technology means the Providers. technology. It can show 400 megabits
enablement of massive new markets “We have several layers of secu- of data transmitted over 30 feet, out
for content providers and a new rity before we even start to encrypt,” to 10 megabits at 500 feet (this is
level of content protection and dig- says Watkins. “This is because we reduced through rocks and walls as
ital rights management (DRM). don’t use frequency based commu- with other technologies.)
Interactive video on demand, which nications – we use time pulses. “We will deliver the range of the
the Pulse~LINK technology Everything out there today starts by better of the 802.11 wireless tech-
enables, has been a “Holy Grail” of looking for a frequency signal – we nologies, but deliver almost 40 times
content providers for years. An don’t have one.” the bandwidth,” says Watkins.
example of interactive video on “Even if you could detect an This would allow for TVs, PCs,
demand might be the ability to Ultra WidE Band pulse and knew Entertainment Systems, home securi-
watch a pay-per-view NASCAR how to find it, next you’d have to ty and more to get multiple two-way
race, pick at various times through- deal with synchronizing the pulses at high-quality wireless video, data and
audio channels from the set top box,
BUSINESS
According to Turnaround
Management Association Survey By Sonny Chandler
Turnaround Business
Remains Strong
We all know by now that in an economic
downturn, bankruptcy law may well be the
safe-haven business to be in. But another,
Tips For Holding Ground
much more positive in nature, also has During a Downturn By Peter L. Tourtellot
shown strength: Turnaround Management.
Make Your Breakeven Point as Low as Possible – The lower
In this year’s Turnaround Management you can push your break-even point in the business, the less
Association (TMA) survey of practitioner you will have to retrench during troubled times. Smart com-
members who consult with or manage firms panies are beneficiaries, rather than victims of a recession.
in distress, 83 percent had actually turned Don’t Retrench Too Far – Proceed with caution in your cutbacks. Going too
away new business opportunities due to a far could hurt your organization far worse than a downturn in sales.
variety of factors, including lack of qualified Keep a Close Eye on the Competition — Assume your competition will try to
staff and engagements perceived as having move ahead of you during a slowdown. Beware that whenever you gear down,
too many risks. This compared to 67 percent competitors can exploit your weakness.
who said they had turned down business in Keep A Close Eye on Customers — Your customers provide a much more
the 2001 poll. accurate gauge of economic activity than the media or industry rumors.
“With more than 200 public companies A number of industries have prospered during the recent recession, yet
you hear very little about them. Don’t let fear dictate company decisions,
expected to seek Chapter 11 protection this especially in regard to new products, new services or physical expansions.
year and a 9 percent jump in private compa-
Keep Key Workers — Even if current demand doesn’t justify their employment,
ny bankruptcies forecasted, TMA members, try to hold on to key personnel as long as possible. Replacing them will be
who include some of the most prominent more costly in the long run.
professionals in the turnaround field, are Support Your Suppliers – Instead of leaving your suppliers to twist in
finding themselves sorting through more the wind, partner with them to find creative solutions in coping with the
inquiries than ever,” said TMA Chairman slowdown. Suppliers won’t forget you when good times return.
Peter Tourtellot, a Certified Turnaround Keep Morale Up — During boom times, employees feel good about being
Professional (CTP) and a principal in part of a growing organization. Layoffs dampen their enthusiasm and affects
Anderson, Bauman,Tourtellot Vos and Co., a performance. Some may even suffer from “survivor’s guilt.” Now, more than
ever, it’s important to reward employees for performance and their value
turnaround firm in Greensboro, N.C. “Many to the company. Research shows that sincere praise and recognition works
are on some of the biggest engagements of better than gimmicky incentives.
their careers, such as Enron, Kmart and Communicate — Put an end to rumors and negative talk by communicating to
Global Crossing.” employees often. Be truthful but be upbeat. If your company sees the downturn
The top three sources of referrals for as opportunity to gain market share, you can turn a negative into a positive.
this increase in business came from lenders,
followed by attorneys and then company Peter L. Tourtellot is a Certified Turnaround Professional (CTP) and the
management, according to respondents. current chairman of the Turnaround Management, a 5,000-member organ-
“Lenders are becoming more assertive in ization for professionals who are dedicated to corporate renewal and turn-
asking borrowers to avail themselves of assis- around management. He is one of the founding partners of Anderson
tance when early warning signals of potential Bauman Tourtellot Vos & Company, a turnaround firm in Greensboro, N.C.
financial problems are present,” said Randall He can be reached at (336) 275-9110 or ptourtellot@abtv.com.
Eisenberg, CTP, TMA president and a part-
ner in the Business Recovery Services practice
of PricewaterhouseCoopers LLP in New York.
“When companies are exhibiting signs of
underperformance, lenders often suggest a
company retain consultants who specialize in
revitalizing businesses.”

FINANCIAL
RxCentric Has a Prescription

For Biotech VC Deals By Dominic Basulto
While the New York biotech industry shows and physicians by emphasizing the Internet
signs of rapidly developing, the actual number as an effective and efficient promotion chan-
of VC-backed life sciences start-ups in nel. Two key components of this platform are
New York City is smaller than one might a sales force automation
think. In fact, the most recent Price- toolkit and its Pharma
waterhouseCoopers/NVCA MoneyTree sur- SolutionSite. RX Centric
vey indicates that, during 1Q 2002, only three offers physicians online
of 76 nationwide biotech VC deals involved access to medical infor-
New York-area start-ups. While VC money mation, while providing
definitely exists for New York biotech compa- pharmaceutical compa-
nies, investors have been cautious about nies a “cost effective way
investing in companies with long development to extend their sales and
cycles, uncertain revenue streams and sub- marketing reach.”
stantive regulatory risks - such as failing to Numbers from
gain FDA approval. Even @ New York, a lead- Forrester Research and
ing booster of Silicon Alley during the 1990s, DataMonitor tend to bear
failed to include a single biotech or healthcare out these observations. In
company as worthy of mention in its February 2001, Forrester
“Companies and Things to Watch in 2002.” published a report citing a
In that regard, RX Centric is unique in potential 247% ROI on Internet marketing
the fledgling New York life sciences sector— solutions for the health care industry. Yes, a
it recently landed a Series D financing round three-figure ROI— at a time when many com-
after raising $21.2 million in three previous panies are struggling to find any return at all
institutional rounds. Moreover, three of its from their technology investments. RX Centric offers
six board members are private equity profes- Moreover, DataMonitor estimates that
sionals. The infusion of VC cash, combined 70% of all physicians are now online, Internet-based
with the experience of VC investors with enhancing the allure of an Internet-based
health care expertise, has enabled RX distribution platform for pharmaceutical marketing
Centric to build out its online marketing companies. A March 2002 internal report
platform for the pharmaceutical industry and from RX Centric suggests (as one would solutions for the
attract a growing number of strategic part-
ners, ranging from pharmaceutical services
expect) that physicians are turning to the
Internet for prescription drug information in
pharmaceutical
companies to medical content firms.
RX Centric, which offers Internet-based
record numbers. In short, the more physi-
cians using the Internet, the more attractive
industry.
marketing solutions for the pharmaceutical an online marketing platform becomes for
industry, now counts four of the Top 10 phar- pharmaceutical companies.
maceutical companies as its clients. The com- In addition, RX Centric has aggressively
pany has exploited two key factors in its early pursued alliances and partnerships in order
success. First, it has leveraged an expanding to penetrate the physician community, estab-
network of strategic alliances and partner- lishing links with medical associations
ships. In addition, it has constantly honed its (American College of Cardiology), medical
underlying value proposition to emphasize the content providers (HealthStream, The
ROI from its expanding product portfolio, Health Exchange) and pharmaceutical serv-
which includes online product marketing, ices providers (MedManage Systems. RX
online continuing medical education services, Centric now has access to a network of over
and promotional services. 25,000 physicians.
The catalyst for growth has been a pro- The RX Centric message has been an
prietary customer relationship management attractive one, if the recruitment of Richard
(CRM) platform that promises to deliver C. Braddock, Chairman and CEO of
value for both pharmaceutical companies Priceline.com, to its board of directors in
June is any indication. RX Centric can only
hope that, like customers of Priceline.com, it
will soon be able to name its own price when
launching a future IPO.

BUSINESS
What’s a Penthouse Without WiFi?

By Joseph C. Panettieri

BUSINESS
Big Apple real estate moguls - and their tenants - are hungry for wireless networks
T
hroughout Manhattan, businesses, govern- giant’s retail locations. The networks rely on
ment centers, schools and apartment com- wireless products and services from T-Mobile
plexes are equipping their facilities with so- Systems (a subsidiary of Deutsche Telekom
called WiFi (Wireless Fidelity) networks. AG) and Hewlett-Packard Co. Roughly
WiFi is a technology standard that allows 2,000 Starbucks locations will feature the free
handheld computers, PDAs (personal digital wireless systems by the end of this year.
assistants), laptops and PCs to connect wire- Elsewhere in and around the city, many
lessly to the Internet and local area networks major hotel lobbies, airport waiting areas,
(LANs). Early adopters in Manhattan and college cam-
include major hotels, building tenants, college puses are now
campuses and retail stores like Starbucks. equipped with
Several factors are driving WiFi’s popu- WiFi network
larity. Much like the Internet’s reliance on access points.
widely supported standards like IP (Internet “Once you surf
Protocol), most networking companies have the Web without
rallied around WiFi, a standard set of specifi- wires you won’t
cations for designing wireless PC hardware. ever want to go
WiFi products have flooded the market back to a dial-up
over the last 18 months or so, and are widely connection,” says Susan Law, a medical stu-
available from PC makers, networking com- dent at NYIT’s New York College of
panies and office supply stores like Staples Osteopathic Medicine.
Inc. A typical WiFi network Consumers apparently agree.
costs about $200 to $500 per Thousands of tenants in and around
user; the system requires wire- Manhattan have purchased WiFi hardware to
less access points (typically share files, printers, and Internet access
installed on office walls or ceil- between multiple PCs and laptops, accord-
ings) and wireless adapter cards ing to a spokeswoman for Linksys Group
that slide into mobile devices. WiFi’s range Inc., a networking company in Irvine, Calif.
and performance varies depending on a Even Microsoft Corp. wants a piece of
building’s floor plan, but a typical system the WiFi market.The Redmond,Wash.-based
performs as well as a cable-modem connec- software giant recently launched a line of
tion to the Internet. WiFi products for consumers and small busi-
In Manhattan, WiFi’s defining moment nesses, leaving companies like 3Com Corp.,
came shortly after the Sept. 11 terrorist Cisco Systems Inc. and Symbol Technologies
attacks. Many businesses that were displaced Inc. to focus on the corporate WiFi sector.
by the attacks didn’t have the time or the Microsoft’s WiFi initiative is an impor-
money to deploy a wired infrastructure in tant harbinger for Manhattan real estate own-
their new facilities. ers and tenants. The reason: Each time
“The combination of simplicity, low cost Microsoft targets a new market, the company
and performance made WiFi a popular net- typically delivers lower-priced products to
working choice for displaced businesses,” undercut competitors and build market share.
says Jason Perlow, a technology consultant at As a result, prices for WiFi equipment
Argonaut Systems in New Jersey. Perlow’s should continue to spiral downward at least
clients include Fortune 500 financial servic- 20 percent per year, according to
es firms and technology companies through- International Data Group, a technology mar-
out the New York metro area. “As prices con- ket research firm in Framingham, Mass.
tinue to plummet, it’s safe to say that wireless
networks will become ubiquitous in
Manhattan. Some people would argue that
WiFi is nearly ubiquitous today.”
Indeed, virtually all Starbucks locations
throughout Manhattan have WiFi access
points. The wireless networks, unveiled in
August, allow Starbucks customers to check
their e-mail or surf the Web within the coffee

BUSINESS NEW DEVELOPMENT TRANSFORMS

FIRST AVENUE INTO THE CITY’S NEWEST
LUXURY RESIDENTIAL CORRIDOR
First Avenue properties

offer grand vistas of
upper Manhattan. Billion Dollar Makeover The 32-story building features 89-exquisitely
designed condominium residences from one
to four bedrooms as well as half-floor resi-
OnFirst Ave
dences and full-floor penthouses. Many of the
homes feature separate wings for entertaining
and sleeping, similar to the classic Park
Avenue layouts of the 1930s. The luxurious
tower residences, floors eight through 32, have
10 foot ceilings and oversized bay windows
First Avenue is emerging as New York City’s providing panoramic city views. To capture
new luxury residential corridor, with seven and celebrate the neighborhood’s rich history,
new condominium and rental developments the developers hired renowned residential
currently under construction or in initial occu- architect Costas Kondylis to design a building
pancy, containing nearly 1,200 apartments at a to reflect and enhance the grace and grandeur
total cost of approximately $1 billion. of its surroundings, taking architectural cues
“Strong demand for high-end residen- from celebrated historic residences nearby.
tial properties has been the driving force Grand Beekman also features a conserva-
behind significant development on First tory with an atrium ceiling, a garden retreat,
Avenue,” said Louise Sunshine, CEO of The and a duplex fitness center. Additional ameni-
Sunshine Group, the exclusive marketing ties include a children’s playroom, a 24-hour
and sales agent for Grand Beekman, a new doorman, concierge, resident manager and
luxury condominium residence at 400 East complete staff of porters and handymen.
51st Street. “This extraordinary and trans- “The Beekman Place enclave’s rich his-
forming activity is creating one of the city’s tory and exclusive appeal have added to the
“Strong demand for most vibrant and attractive residential corri- success at Grand Beekman,” said Izak
high-end residential dors, with prices over $1,000 per sq. ft. in Senbahar. “Grand Beekman’s classic exteri-
properties has been well designed towers offering commanding or architecture, high-end luxury interior fin-
river and city views.” ishes and numerous lifestyle amenities have
the driving force
Established areas such as Beekman attracted significant interest from buyers
behind significant Place, Sutton Place and the Upper East Side looking for elegance and lasting value.”
development on offer superb residential locations in close Other luxury buildings developed
First Avenue.” proximity to wonderful shops and boutiques, recently in the First Avenue Corridor include
a wide-range of restaurants, easy access to Trump World Tower at 845 UN Plaza,
-- Louise Sunshine, major thoroughfares in and out of Manhattan Beekman Regent at 351 East 51st Street,
The Sunshine Group and the potential for dramatic river views. Bridge Tower Place at 401 East 60th Street,
This has helped spur the wave of luxury resi- and the Impala at 1452-1458 First Avenue.
dential development along First Avenue. Prices for these lavish residences range from
Developers Izak Senbahar and Simon several hundred thousand dollars to more
Elias anticipated this First Avenue renaissance than $10 million for penthouse apartments.
more than a decade ago when they began Two luxury rental apartments are also com-
assembling the lot at the southeast corner of manding top dollar. The Pearl at 400 East
First Avenue and 51st Street for Grand 66th Street and The Century Tower at 400
Beekman, the first new development in the East 90th Street have added more than
Beekman Place enclave in more than 25 years. 250 luxury rental units along First Avenue.


TECHNOLOGY
Computer Race About

to Become Ultra Personal
By Keith O’Brien
OQO is squarely working on the premise that price being near $1800, one would find it dif-
consumers find their laptops too cumber- ficult to sell it any other way.
some and their PDA programs inadequate. Bell says the company fully expects that
The company will soon offer the ultra-per- jet-setting professionals will first become
sonal computer, at a size smaller than a enamored with the ultra-personal computer,
“...the time paperback, that it hopes will be the final solu- and that the sales will eventually filter down
tion for the wired community. to the blue collar and gadget-wary con-
[has] come “After years of designing Apple and sumers that usually initially shun the next
for the next IBM laptops, the OQO team felt the time
had come for the next step of the full-fea-
level of technological products.
Just as the cell phone is the latest incar-
step of the tured, wireless PC. We sought the device that
incorporates wireless access as a central idea
nation of the telephone, Bell believes the
ultra-personal computer is another step in
full-featured, to the whole mobile experience,” said Jory the evolution of the computer.
Bell, President and CEO of OQO. Now the race is to continue to shrink
wireless PC.” The ultra-personal computer does elim- while adding features. PDA companies like
inate the need for many different products. It Handspring and Palm, while increasing their
—Jory Bell, is a miniscule 4.1 inches by 2.9 inches by 0.9 memory, abilities and accessories, still lack
President and CEO,
OQO inches and weighs less than nine ounces, yet the all-encompassing software to create the
runs Microsoft XP and has USB capabilities. small computer that OQO claims it possesses.
A cradle comes with the ultra-personal com- The company is currently entertaining
puter and consumers will be able to purchase options for a partner to manufacturer the
an external keyboard and monitor to trans- product. OQO is optimistic about a Beta-run
form it into the traditional format. For office in the fourth quarter of 2002 with volume
and email applications, the OQO ultra-per- occurring in the first quarter of 2003.
sonal computer has a battery life of 8 hours.
For MPEG movies the average battery life is
2 hours. For MP3 music the battery life is 7
hours. The OQO device also will have a OQO’s ultra-personal computer
standby battery life of over a week, much eliminates the need for many
better than any current laptop. different products.
Bell insists that the company’s
product, while PDA-sized, is
actually competing against
laptops. With the expected

BUSINESS
Citi Habitats
Offers Short-Term
Manhattan Digs
Supporting
theCast
If you’re Kathleen Turner or Brad Pitt, a
place to stay in New York during produc-
tion can be any of a dozen five star hotels
without stress on the pocket, but what if you
are a supporting cast member or technician.
You can be sure Keanau Reeves is not bunk-
which is estimated to be in the order of $7 mil-
lion per annum, explained Nick Hetherington
and Paul Black of the Citi-Habitats Furnished
Apartment Division.
Citi Habitats Furnished Apartment
Division is making its debut due to the over-
By Sonny Chandler
All the world

may be a stage,
ing in with the “Best Boy” and “Key Grip”
just because the shoot runs long. With all the
whelming demand for short-term furnished
rentals from all business sectors. The
but it would help
short-term film productions and Broadway Furnished Apartment Division will work
shows, there cannot be enough Aunt Sophies with companies and high-level executives to if it had a spare
with spare bedrooms in all of New York to locate furnished apartments for groups of
board the crew.
With 15 films under development in
employees or individuals.
“Short-term furnished rentals offer a
bedroom as well
New York City and a filming process involv- much more cost efficient solution than pro-
ing three stages including pre-production, longed hotel stays,” said Gary Malin, COO
three months; principal photography, four to of Citi Habitats. “This Citi Habitats special-
eight weeks; and post-production, six to 24 ized division will offer companies and indi-
weeks; the need for accommodations is viduals a better place to stay while they’re
booming. Also, those involved in theater ven- working and residing in New York City.”
ues such as the 32 Broadway shows, high- This Division will seek out and locate
end Off-Broadway productions and music furnished apartments offering the requested
industry professionals require housing, and specifications from price to size, from loca- Nick Hetherington and Paul
that’s just in the entertainment sector. tion to views. The furnished division will also Black of the Citi Habitats
To meet the needs of these executives, work with tourists coming to Manhattan for Furnished Apartments Division
producers and artists involved in entertain- month or longer stays and other profession- pause for a moment in the
kitchen of one of their
ment projects and other business professionals seeking short-term accommodations. furnished rentals. Citi Habitat
als moving to the city for short-term stays, “There is a huge demand for short-term is addressing the growing
Citi Habitats, New York’s largest rental and housing from tourists coming to New York demand for short-term housing
sales real estate brokerage agency is spinning who want to experience the Manhattan in Manhattan.
off a Furnished Apartment Division. lifestyle, to consultants to interns to celebri-
Stopping the flight of film production ties coming to work and live for brief dura-
from NYC to Toronto would be more possible tions in New York,” said James Fegan, direc-
if Citi Habitats Furnished Apartment Division tor of Citi Habitat’s Furnished Division. “We
can help reduce the accommodation budget want to focus on this specialized market to
associated with production by 40 to 60 per- find each individual the appropriately locat-
cent using short term rentals instead of hotels, ed and priced apartment for city living.”

BUSINESS
BUS
Broker in the Trenches By Tina Lee
I n a city all about real estate, office space is a

premium commodity. But like most indus-
tries in New York, real estate is still recuperat-
ing from September 11th and from the eco-
nomic downturn.The tragedy exacerbated an
already weakening economy that had reached
its zenith just before the stock market disinte-
gration, which started in March 2000.
“Vacancy rates were already on the rise
toward the end of 2000,” says Richard
Charkham, Managing Director at GVA
Williams, one of the largest full-service com-
mercial real estate services companies in
Manhattan.The implosion of the dotcom rev-
olution led to a rise in vacancies, with large
numbers of companies shutting down and
disposing of excess space. As 2001 proceed-
ed, things grew worse, and real estate profes-
Photo by Chris Travers

sionals anticipated that the market would be
flooded with new space after Labor Day.
Then September 11th happened.
Initially, the general expectation was that the
glut of new space would be absorbed by the
demand from tenants displaced by the (which always lags after the economy) for at
tragedy. There was, indeed, an immediate least another 15 months (early 2004). How
demand for space but instead of sticking to weather the storm? Charkham believes “We will not
exclusively to Manhattan, tenants fulfilled responding to the client’s changing needs by
some of their needs outside of the city, pri- developing long-term strategic partnerships encourage
marily in New Jersey. Many requirements
were also satisfied in Midtown Manhattan,
is key. “Brokers, who have their client’s best
interests in mind and wish to retain a long-
a business
much by backfilling empty space that had
not yet hit the market. This surge subsided
term relationship, will advise clients to do
what’s best for the client,” says Charkham.
to lease space
after about eight weeks and once the hard “We will not encourage a business to lease simply because
truth of the recession set in, sublease space space simply because it’s a tenant’s market.”
flooded the market. In addition to landlord and tenant repre- it’s a tenant’s
In the first quarter of 2002, approximate- sentation, GVA provides an array of other
ly 15 million square feet of office space was services such as facilities and property man- market.”
returned to the market, with only 7.5 million agement and project management. For ten- -- Richard Charkham
being absorbed. By August 2002, Manhattan ants with multi-market operations, GVA offers Managing Director,
had seen negative net absorption of 14 million best-in-class transaction management and GVA Williams
square feet. In other words, the amount of leased administration services (including the
space returned to the market exceeded the all important lease audit, through which ten-
amount leased by 14 million square feet. To ants may recover substantial sums of money.)
put that in perspective, most companies meas- “Despite the downturn, there is never a
ure 200 square feet per employee: That’s dull moment in Manhattan,” notes
enough space for 70,000 workers. Charkham. “In 1991, when New York suf-
Unless the job market significantly fered an even worse recession, people in real
improves, this situation will not change and estate business used to say ‘Stay alive till
may even deteriorate. Most brokers believe ‘95’.” Change the dates, and it’s an appropri-
there won’t be signs of a rising office market ate survival mantra for today.

BUSINESS
Hip hotels
are the best
places to visit,
but the worst
places to stay
Jointhe Club
Though he and his socialite cohorts regular-
By Tina Lee
building intimate spaces

ly make Page Six with their fun, nighttime for the likes of Anna
antics, Jeff Klein, founder of the City Club Wintour, David Bowie,
Hotel, couldn’t be more serious about creat- and Michael Douglas.
ing an environment where world-weary trav- Bilhuber’s sophisticated,
elers can relax with top-notch service in a understated taste per-
sumptuous, intimate setting. vades every room with
“Trendy hotels started popping up in Honduran mahogany,
At top, high-end, luxury
the late Eighties, but they sacrificed service,” cork floors, and matte limestone. amenities, including Frette
says Klein. Bathrooms all use chocolate marble and bed linens and down feather
“It worked for 15 years, but the public’s chrome. On the walls, there are unique touch- beds bring relaxed charm to
too smart now.” Located on West 44th Street, es like shimmering mica-flecked wallpaper every bedroom; at left, unique
City Club has Barney’s, Bergdorf’s, and bold art.The decorative details styling and Hermes products
in every bathroom offer a
and the vibrant heart of the theater go right down to the lights; all fresh approach to hotel living;
district right outside the door, but rooms include dimmer switches so above, attention to detail
what’s inside is another story. you can choose how soft the glow greet you in a very personal
With its elegant facade, City should be. manner.
Club offers a refined alternative In addition to clusters of
to the loud, see-and-be-seen coral, Mylar mobiles by Fabien
Royalton and Algonquin hotels Baron, orchids, antique maps, and
down the street. More in tune with framed LPs, guests will find qual- City Club Hotel
the quiet charm of the Harvard ity art books in their room, vol- 55 W. 44th St.
and Yale Club, City Club treats umes on Ernst and Man Ray 212.921.5500
guests to the delicious feeling of placed near the bed for nighttime Price ranges from
finding a secret address. Housed in a seven- reading. They are encouraged to pick books
$275 to $900
story, turn-of-the-century stone mansion, City up from the lobby, swap one for the other, all
Club provides all 65 of its rooms with high- of which helps to create a personal connec-
end, luxury amenities, including Frette bed tion to the environment.
linens, down feather beds, and Hermes prod- If you’re hungry for celebrity sightings,
ucts in every bathroom. Minibars are stocked or just plain hungry, head to the DB Bistro
with free drinks. (“I don’t believe in nickel and Moderne restaurant, run by award-winning
diming guests,” says Klein.) The lobby itself is chef Daniel Boulud.
a sanctuary experience, preserving an air of This French-American eatery serves
exclusivity that must have been present in the breakfast, lunch, and dinner to the public on
building’s previous incarnation as a private the ground floor. Some of the famous diners
gentleman’s club in 1904. Visitors are greeted have included Woody Allen, as well as “The
in the tiny lobby by impeccably dressed and Graduate” cast mates Jason Biggs, Alicia
mannered employees. Silverstone and Kathleen Turner. Or better
To create the hotel’s timeless elegance, yet, just call in room service.
Klein recruited Jeffrey Bilhuber, the well-
known decorator who has built his career on
AD
AD
LIFESTYLE
SKINKLINIC
800 b 5th Avenue,
New York, N.Y.
10021
(212) 521-3100
www.skinklinic.com
Skinklinic’s entry, left and above,

gently beckons you to shead your
stress and become revitalized
in one of their treatment rooms,
below, designed to relax.
No downtime
skin care
B eauty may only be skin deep but it can open up a world of opportunities!
M. Katherine Dwyer, the 52 year old founder of Skinklinic, is one of marketing’s rare success stories; a visionary
who can design, develop and execute a product or service, build the brand and deliver economic value for consumers.
As former head of Revlon USA, (to name only one of her numerous professional achievements), Ms. Dwyer opened the
first Skinklinic treatment center on Fifth Avenue in September 2001. Since then, many men and women who are short
on time but long on the desire to erase the inevitable signs of aging, have immediately benefited from the minimally
invasive but effective skin treatments offered.
Mercifully, securing an appointment at Skinklinic is a lot easier than the months in advance booking requirements
of some New York dermatological practices that offer similar treatments. The center is clearly designed to administer to
the demands of a sophisticated clientele who do not want to suffer through the multi- week wait for either the subtle
improvements promised by cosmetic products or the half an hour to see an often-quoted skin czar. In fact, one does not
even have to wait for an elevator as Skinklinic’s garden entrance off Fifth Avenue quietly invites a client to enter across
two calming black pools of water via a white marble bridge. The two story interior space is a dramatic mixture of Zen-
like calm and clinical efficiency. Color accents of lavender, gray and mint green are cleverly used in not only the treat-
ment rooms but also on the packaging of Skinklinic’s own products.
As planned, Kathy Dwyer succeeds in creating a serene minimalist environment. To achieve her next goal in deliv-
ering the services of Skinklinic, Ms. Dwyer hired and then conducted a rigorous training program for the nurses and
nurse practitioners who administer the skin treatments. These clinicians are also kept up-to-date with any new tech-
niques by additional weekly training sessions. At all times, the on-site board certified dermatologist, Dr Soren M.White,
is available for any last minute questions that might arise. After all, Skinklinic is not a chi-chi spa but is for busy clients
who, as Ms. Dwyer explains…” may be with us for only thirty minutes per visit. But all of them will leave feeling uplift-
ed, cared for and looking more radiant. It’s the lunchtime, no downtime way to take care of your skin.”
A Skinklinic experience begins the same way for everyone, incorporating a customized “skinscription” plan of the
“essentials’ (skin treatments), “replacements” (collagen stimulation/replacement), and “removals” (botox, hair
removal…etc).The center’s twenty-one product line is also grouped in these three categories and formulated to enhance
and extend the skin’s clinical improvements. In this way, Skinklinic, with the hard work of its founder Ms. Dwyer, has
achieved another business milestone by providing visibly effective skin treatments for those who want to look as healthy,
fit and sexy as they feel.
By Judith Fleischner
LIFESTYLE
Passport Travel Spa was created to provide
A fatiqued travelers with professional and

convenient personal services through
Lay-over shops located in airport concession areas

throughout the country.
Make-over
…a business idea lay-up? By Sonny Chandler
Air travel lay-overs can be some of the most uncomfortable parts of travel. If
it’s the last leg of a trip before a business meeting at your
final destination, how do you prevent the airport crumple
adding an untimely wrinkle in your presentation?
Passport Travel Spa is hoping to flip this stressful time
into a full-treatment replenisher. It offers a full range of
professional spa services to air travelers and airport per-
sonnel, including nail care, hair styling, and massage.
Passport Travel Spa delivers services for a previously
overlooked personal care and products market absent
from most airport concession programs. With products
Photo by Lou Mann
and services available for the entire general population,

Passport Travel Spa particularly fulfills the needs of the
rapidly growing female population of travelers.
A subsidiary of the New York based King Cross
Corporation, it opened its first location at Indianapolis
Airport in August.
Minority and woman owned, Passport Travel Spa
Tracy Nixon, was started by Tracy Nixon, who holds an undergraduate
Founder, degree from Princeton and a MBA from Columbia. A
Passport Spa Travel successful business woman, who left her job as a VP of
Equities for Goldman Sachs, Ms. Nixon used her own
experiences to start Passport Travel Spa.
Having traveled extensively on business in her career,
Ms. Nixon realized the importance of maintaining a pro-
fessional appearance despite a demanding travel and
meeting schedule. Passport Travel Spa was created to fill
a void previously underserved by airport concessions,
with professional and convenient personal services in air-
ports throughout the country.
The company is young with just one location, but is
in negotiations with several additional locations.
www.passporttravelspa.com

LIFESTYLE
Something old is something new again…
Porsche has released its first non-sports

car vehicle with the Cayenne sport utility.
Surrounded by specu-
lation, curiosity and a The Porsche Cayenne S
measure of skepticism,
the Cayenne, has been
years in the making.
The Cayenne S
and Cayenne Turbo
were presented to the
public for the first time
at the Paris Motor
The Porsche Cayenne Turbo Show in September.
The Cayenne S base
price in the United States is $55,900,
while the base U.S. price for the Cayenne
Turbo is $88,900.
Harley-Davidson has been building
some of the world’s best-loved motorcy-
cles since 1903 and now offers a fine
start to the next hundred years of road
pleasure. Harley-Davidson’s 100th
Anniversary lineup offers a fresh inter-
pretation of Harley-Davidson perform-
ance, style, quality and heritage. In addi-
tion to the anniversary emblem, many of
the models sport the new Two-Tone
Sterling Silver and Vivid Black paint
combination.

Harley-Davidson’s 100th
Anniversary lineup offers
new variations on it’s
classic theme.
By Automotive Editor, Peter Bordes

LIFESTYLE
Epson Canon
Beauty may fade, but these photo-print images Ready to move beyond that $39 printer – go all the
won’t. This could be the thought behind the use of the way with Canon’s imagePROGRAF W2200, one of the
EPSON Stylus Photo 2200 for the Miss America 2003 new-generation fast and fine graphics printers with 1+-
pageant. Resolution of up to 2880 x 1440 dpi, printable inch print head. Widths up to 13” x 19” make this good
area up to 13” x 44”. $699 for graphic designers, artists, advertising companies…and
perfectionists with the pocket to match. $1,995
Toughbook:
It used to be that ruggedized portable computers Logitech
also weighed as much as a Sherman tank and should have Clip that mouse’s tail…but no need for a carving
come with wheels. Panasonic’s new 2.2-pound knife. Logitech introduces its Cordless Elite Duo™, using
Toughbook CF-R1 sub-notebook changes that with its digital multi-channel RF technology with secure encryp-
lightweight impact-resistant, dimpled-magnesium-alloy tion. Includes enhanced multimedia controls, and
clamshell encasement, and shock-dampened 10.4-inch advanced Internet navigation tools on a low-profile
screen. $1,850 design. $99.95
Gadgets
LIFESTYLE
Samsung Nokia
Responding to what they see as an insatiable demand With the Nokia 6650 video-capable 3G phone, you
for storage capacity, Samsung introduces the industry’s are one step closer to the universal phone-data-image
first 2Gbit NAND Flash memory device utilizing 90- device. But if you want to go beyond those clumsy cord-
nanometer process technology. The 2Gbit device neatly ed earpieces for comfortable hands-free listening, its
placed in a Quad Die Package instantly generates an accessories include a wireless Bluetooth-enabled headset.
8Gbit-capacity device that can store 80 minutes of DVD
Visteon
quality video data. So beyond the PDA and still camera,
Electronics companies have been trying to improve
Flash now moves to your digital video cameras and mass-
the long-distance driving experience for some time with
storage audio players.
a variety of back-seat video solutions. But most of these
Fuji have been bulky plug-ins or expensive custom-built
Fuji introduces the palm-sized FinePix F402 digital solutions.
camera that weighs in at 4.4 ounces. Delivering 2.1 Volkswagen is introducing an aircraft-style system
megapixels, the camera is easily justified on an expense from Visteon in its latest European cars and vans –
report since it not only does photo-quality images, saving ready for the wider population keen on in-car entertain-
on the print costs, but it does movies and videoconferenc- ment. It can come with DVD or VHS, and can connect
ing. $349.95 to computer games as well.
(Have some technology you want to show off? Send ideas to Technology Editor, editorial@empiremedia.com)

LIFESTYLE
The Line, the Stitch

and the Wardrobe
Garde Robe
L
“I thought, there
has to be a
ots of expensive designer clothes. Yet, not
enough closet space to hold more than one
Dolce & Gabbana suit? What’s a New
Yorker to do? Well, rent out closet space from
a new company called Garde Robe. Based in
a renovated 6,000 foot Tribeca loft, Garde
Robe lets those with not enough room at
home to store their off-season garments in a
climate controlled—60 degrees at all times—
By Ann Brown
Armed with an idea, Akhtar went hunt-

ing for a space to launch Garde Robe (which
in French means wardrobe.) Since opening in
March, Akhtar hasn’t had any trouble attract-
ing clients. Already, mostly through word of
mouth, she’s amassed clientele of 40, includ-
ing a Scottish businessman who stores his
clothes with Garde Robe for his frequent Big
Apple visits. “When he’s in town, we drop off
cheaper and fully insured (for that $25,000 couture gown, his clothes at his hotel,” explains Akhtar. Of
of course), and guarded by a 24/7 video
better alternative monitoring security system. There’s even
course, there are a handful of celebrities, but
Akhtar stays mum on just who.
[than storing at more that makes Garde Robe stand out.
“My partner, Ellen Hopfinger, and I will
Garde Robe’s only main competitor is
Manhattan Mini-Storage, which unlike
a dry cleaners]” personally pick up your off-season or infre-
quently worn items, and arrange for profes-
Garde Robe, claims Akhtar, doesn’t offer
the personal touch. “Plus,” says Akhtar, who
-- Kim Akhtar, sional dry or tailoring repairs.We photograph has since also opened a cold storage area for
Co-owner, and catalogue each item and send you a port-
Garde Robe furs, “We’re very affordable.” For $225 a
folio, which is also accessible online,” says month (including tax), clients get storage,
owner Kim Akhtar, who came up with the dry cleaning, and pickup/delivery. Add to
unique idea after she found herself stuck this a few more special services: a seam-
with an $8,000 dry cleaning bill. stress who will come to clients’ homes for
Like many closet-deprived New Yorkers, fittings or alterations, professional image
Akhtar would store her off-season clothes in at consultant, hairdresser and make-up artist,
her favorite dry cleaners. “Last year I couldn’t and Garde Robe will even pack for bags for
believe it when the bill came to $8,000, plus I your trip—at $100 per hour.
wasn’t able to get retrieve my clothes whenev- For more information, visit www.garde
er I needed. I thought, there has to be a cheap- robeonline.com or call Garde Robe at
er and better alternative,” says Akhtar, who is 212-227-7554.
a professional flamenco dancer.
BUSINESS
Constructing the Quality of Life

(Continued from page 12)
not satisfying enough. You have to take the “When we bought the building where
eventual sale into consideration.” my headquarters is right now, it was 50%
Rosen says the change has helped with vacant and another 25 % was turning in leas-
the quality of the architecture. es and nobody had the money to actually pay
“If you look at new high end residential for tenant improvements and commission for
you’ll see a lot of people like us start to use the brokers. So for me it was Manhattan, its
very high quality architecture, with big name 54th and Park, it’s only $25 a foot or so in
architects in order to match the lifestyle of rent, but somebody will rent it eventually.”
the people who buy. Those people usually “The city has always come back, and
have the financial capability to take the exte- for me there was no chance that the city
rior architect into the building. If you looked would die and there would be no ten-
at 60s, 70s and 80s … on the exterior it ants; for the right number there is
looked very ugly and on the interior people always a tenant.”
spent the money.” But Rosen now says there is little
Rosen says when he started construction room for optimism on the commer-
here in 1994 people questioned why he spent cial side today, after a great deal of
so much money on the architecture. sub-let space flooded the market
“I said I don’t care, it does not cost me after the tech crash. “Some users
that much more and at least it will be judged will build office space, but the
in the right fashion and the longevity will be market needs a lot of absorption
there. If you only do one development in the still, that’s why the discussion
city it doesn’t make a difference if it is ugly or with the World Trade Center is
not, but if you are continuously a player and difficult – yes we all want to see
investor in this town then you’ve got to make something happen there, I personal-
sure what you build adds to the city not only ly want to see a great memorial and a park
financially for yourself but also visually and there - but we don’t need the space. Yes we
also adds to the quality if living. The higher will eventually need more commercial space
the quality of living goes, the higher the qual- in New York, but there are other spaces to go
ity of working goes, the better this town is. to and other places to be created.”
The more it attracts foreign investors, the Terrorism insurance price hikes have sti-
more it attracts local workers … it comes fled commercial development too, says “The city
back around to you. And this has happened Rosen, noting that if you buy $100 million in
… if you look at the great turn New York has insurance value today, terrorism insurance has always
taken in the last seven or eight years, visually will cost $3 million. “Before 9/11 it was not
its spectacular, people have far more style, even a separate clause. Before the end of the come back”
people have far more desire and spend far year the Government will step in and provide - Aby Rosen
more money to achieve that. terrorism insurance like they did in Europe
Rosen says his success came from com- 20 years ago.”
ing to the United States in 1988 and being in Rosen is more positive about residential
a position to buy in a down market for real construction, but believes residential real
estate. “You buy cheap assets in a down mar- estate as an investment is best for individuals
ket and you buy great assets in an up mar- who need a place to live.
ket.” Some of his success, he says, came from “People will be disappointed if they
the fact that he was unknown: “I had no bad invest in opportunity funds which have
debts, no foreclosures and no reputation. It promised investors those high yields of
was a combination of knowledge and igno- 12 percent or higher. The same thing hap-
rance.” Ignorance because he says he did not pened in Europe in the 90s – they will be dis-
realize how bad the market was. appointed when they get the returns of Bond
prices like four to 8 percent.” But he notes
those people who lost so much on other
investments such as stock, would be happy to
see such returns. “It is a great way to diversi-
fy your holdings.”

LIFESTYLE
Fashion
When it suits...
When it’s time to suit up, Giorgio Armani
still has the answers…
“When I think about fashion, I think
about something intrinsic to my life. When I
think about style, I think of it as the only real
luxury that anyone can afford to indulge, with
or without money. When I think about ele-
gance, I think how one achieves it only by
silencing loud trends. This is how I’ve felt
about fashion, not just since my name and
labels became well known around the world,
but since the day I began my career. I’ve always
had a pragmatic approach, an instinct honed
by working from the outset in the world of
industrial production and broad distribution.”

LIFESTYLE
Passion
Warmed
but still cool…
Having won over the world of music with his
Uptown recording label, Sean “P. Diddy”
Combs has gone downtown with his signa-
ture collection of sportswear under the name
Sean John. He created the line to fill a void in
the market for well-made, fashion-forward
clothing that also reflected an urban sensibil-
ity and style. “I always had the idea that I
would start my own apparel line, but I want-
ed to make sure the timing was right and that
I had the time to devote to it,” says Combs.
Private’s designer, Freddie Rojas, has
been everything from a buyer to a merchan-
diser to a pattern maker. Rojas is known for
his provocative, sexy, and detailed clothing.
Selected by Associate Fashion Editor, Katherine Manderfield

LIFESTYLE
Softer than their predecessors,

these bags are made of more
durable leathers and they’re
for men.
InTheBag
T
ake a quick glance at any business-
man walking down the street. For a
split second, it might be the 1950s
all over again — gray flannel suit,
white shirt, repp tie, black wing tips. By Brian Scott Lipton
And he might even be carrying a
briefcase or portfolio. A messenger
bag may still work on casual
Fridays or the weekend, but it not
only isn’t right for those more for-
mal times, but why mess up the
lines of that elegant made-to-meas-
ure suit with a shoulder strap.
Yet, even if today’s best brief-
cases have a retro feel, papa’s still
got a brand new bag.
“We are not going back to the
hard bags of yesterday,” says Dan
McCambell, vice president and
men’s fashion director at Saks Fifth laptop
Avenue, where the selection ranges — the high-end
from such established names as manufacturer also carries
Giorgio Armani, Holland & Holland all-leather briefcases, in single-
and Coach to award-winning newcomers and double-gusset styles, including one
Lambertson Truex. in a remarkable hunter green.
While softer than their predecessors, these newer For sheer sleekness, Louis Vuitton’s single-gusset
bags are made of more durable leathers than ever, often briefcase in ultradurable “epi-leather”, and Prada’s brief-
accented by nylon (or the other way around). They are case in black calfskin top the season’s must-have list.
also augmented by 21st century touches, like pouches for Prada also showcases a luxurious looking laptop carrier in
a laptop or detachable cell phone holders. sturdy black nylon.
Combining the best of the old and new is Salvatore Also sure to catch one’s eye are Suitor Mantelassi’s
Ferragamo’s “Salvatore Bag.” Inspired by the “briefcase” double-gusset leather briefcase (complete with inside fit-
the famed shoe designer personally used in the 1940s — ting for a cell phone) in black or brown with camel stitch-
and patterned after the doctor’s bag of that period — the ing, available exclusively at Bergdorf Goodman Men;
Salvatore is made of leather, nylon and pony skin. Its zip- Rafe New York’s exquisite portfolio in black leather with
pered side pockets form a double handle that provides an white stitching; and Kenneth Cole’s oddly-named
anatomically correct grip. “Messenger to the King” bag in nylon twill with leather
Another old-meets-new winner is Dunhill’s model stitching. It has also detailed interior pockets for every-
in ballistic cloth with leather trim, which conveniently thing from cell phones and PDAs to your pens.
hides a laptop. For an even dressier look — but no We have come a long way baby!


LIFESTYLE
Beat a Business Retreat

ON THE SHORES OF LAKE COMO
By Kate Ayrton
The grand old Villa d’Este on Lake Como in northern Italy has been
attracting rich and powerful guests since a group of astute business-
men opened it as a deluxe hotel in 1873.
Evita Peron, Frank Sinatra, Madonna, Yasir Arafat and Kofi
Annan have all enjoyed the delights of this 16th century patrician
Italian villa, which prides itself on discretion and excellent service.
(The staff to guest ratio is one-to-one.)
Set amidst beautifully landscaped gardens complete with water-
falls and grottos beside one of the most famous lakes in the world, this
supremely elegant hotel has been offering outstanding cuisine and a
level of hospitality, almost impossible to find today, for generations.
During the war it was a haven for wealthy Milanese families until the
Germans evicted them in 1943 and used it as
a plastic surgery hospital where Nazi officials
could stop off for a quick face-lift before
escaping to South America. Fortunately, in the
spring of 1945 the Americans arrived in
Cernobbio, liberating the Villa, and the rest of
the North, and making the Villa d’Este the
favorite rest camp for G.I.’s on leave.
Since the demise of the grand old
European tour and the destabilization of the
world’s economy, the hotel has become
Room rates range
from $330 per/night increasingly popular with the business crowd who regularly arrive en-
to $2,350 for a suite. masse for conferences and power sessions on one of the seven nearby
For more information golf courses. The hotel caters to all the needs of the busiest executives.
contact: Conference rooms, banquets and presentations are easily
Tel: +031.348.1 arranged, all supported by professional secretarial back up, as well as
Fax: +031.348.844 a variety of activities ranging from motor-boating, sailing, windsurf-
Email: info@villadeste.it. ing, water-skiing, kayaking and sports car driving to
Website: www.villadeste.it games of tennis, squash and luxurious spa treatments. There is also a
sporting club, indoor and outdoor swimming pools and a jogging
route that winds through the grounds. For a week in early September
every year (right after the mandatory August holidays) Italy’s most
powerful businessmen gather here to discuss the year ahead. Could it
be time for the Americans to take up residence once again?

COLUMN
BOTTOMLINE
The Plot Thins
(or, Where I Stand On Real Estate)
By Allan Hoving
We all end up in real estate—unless, that is, We were both nuts, but at least he had
we’ve left posthumous instructions for cre- money. I wanted to run his campaign for sen-
mation or burial at sea. ator; he wanted me to peddle his biography
The very first piece of real estate many but ultimately decided my treatment didn’t
people own is a modest single unit on “move” him.
Ventnor or perhaps Illinois Avenue, depend- As you probably know, he was later
ing on the roll of the Monopoly dice.With its framed by political enemies for conspiring to
lessons of ruthlessness and avarice, the clas- murder a business associate. The hit was
sic board game actually provides better never carried out and the intended victim
preparation for the business world than many died peacefully in bed. Nevertheless, a court
MBA programs. I can still feel the thrill of an of law actually sentenced the lovable lunatic
uninterrupted run of hotels, and of rifling to prison. But in typical Hirschfeldian fash-
through my fistful of deeds to see how much ion, he turned it into a joyous experience,
“rent” my latest “visitor” owed. Maybe that’s spreading word of the miracle jailhouse diet
how Donald Trump first got the bug, though, that turned him from portly to petite.
of course, he went on to actually own pieces Perhaps I too was feeling the political
of Atlantic City, where the streets are named heat when I finally fled New York City to set-
for those on the Monopoly board (or was it tle in idyllic Fairfield County, Conn., five
the other way around?). years ago. That town just wasn’t big enough
It wasn’t long after my parents tossed for me and Rudy Giuliani. I missed the old
their own mortgage on the backyard barbe- Times Square, the squeegee brigades, and
cue to celebrate the end of 30 years of the rest of the real New Yorker’s New York
bondage in a Long Island split-level, that I that was being purged for the sake of tourism
began my own indentured servitude to land- and development. So I turned instead to a
lords in a series of studio apartments in first home purchase, and, this past summer,
downtown Manhattan—most barely larger a quickie refinance.
than the Monopoly squares. One was In fact, with interest rates now the low-
described as a “room with adjoining towel”; est in 40 years, this may be a good time to
another had mirrors on all four walls, creat- consider refinancing that burial plot at
ing the illusion of several rooms occupying Montefiore. There’s even a reverse option
the same square footage. In my later, starv- whereby you remortgage a parcel you’ve pre-
ing-artist-seeking-space-to-create period, I viously paid off, the bank paying out to you
forked over $2000 as a “fixture fee” for the on a monthly basis until they own it outright.
privilege of subletting a quasi-residential loft But then, you’d be leaving your heirs on the
in Midtown. The “fixtures” included a W.C. hook and they might not take kindly to being
with a wooden tank, and a nail salon on the stiffed.
floor below that sent fumes up the stairwell.
All through those lean years, I’d avidly
follow the adventures of New York’s real
estate royalty. How I longed to have a busi-
ness deal pending with a mogul declared non
compis mentis like Harry Helmsley! Imagine
my delight when I fell into the clutches of
open-air parking garage magnate Abe
Hirschfeld, whose office in the Pennsylvania
Hotel was across the street from my own at
the time. I thought we had a lot in common:

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Judith Fleischner

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Nov2002Empire.

qxd 10/10/2002 8:21 PM Page 1

Real Estate Issue

INSIDE FRONT COVER

Real Estate In This Issue

IDEAS Cover photo of Aby Rosen by Jesse Harris.

Empire / November 2002 3

Photo by Jesse Harris

The BBX - What It Means For You

6 Empire / November 2002

An investment in life By Chris Travers

Empire / November 2002 7

sufficient cash to close without selling

8 Empire / November 2002

By Gordon H. Smith, P.E.

T here are two major building facade topics on

A Quiet Skyline Heralds an

of Terrorism Before Sept. 11th, tions have either been delayed or

10 Empire / November 2002

deal or if you get hold of a don’t get between 25 and

12 Empire / November 2002

Empire / November 2002 13

Credit card debt control

14 Empire / November 2002

The three biggest concerns of cable operators today: By Chris Travers

NO BARS, NO WIRES, NO LIMITS C

RxCentric Has a Prescription

Empire / November 2002 19

What’s a Penthouse Without WiFi?

20 Empire / November 2002

Empire / November 2002 21

BUSINESS NEW DEVELOPMENT TRANSFORMS

First Avenue properties

22 Empire / November 2002

Computer Race About

Empire / November 2002 23

All the world

Broker in the Trenches By Tina Lee

I n a city all about real estate, office space is a

Photo by Chris Travers

building intimate spaces

Skinklinic’s entry, left and above,

Passport Travel Spa was created to provide

A fatiqued travelers with professional and

Lay-over shops located in airport concession areas

and services available for the entire general population,

Something old is something new again…

Porsche has released its first non-sports

By Automotive Editor, Peter Bordes

Empire / November 2002 33

The Line, the Stitch

Armed with an idea, Akhtar went hunt-

Constructing the Quality of Life

36 Empire / November 2002

Selected by Associate Fashion Editor, Katherine Manderfield

Empire / November 2002 37

Softer than their predecessors,

38 Empire / November 2002

Beat a Business Retreat

40 Empire / November 2002

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