EQ. Magazine Summer Issue 2019

danielEQ19

RENZO PIANO

The

Hamptons

Issue

250 AT CAMPBELL STABLES

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S U M M E R

2019

12

Everyday Excitement

GTO Engineering produces brilliant

classic car replicas for a fraction of the price.

On the cover: GTO 250 Ferrari courtesy of Manhattan Motorcars photographed by Daniel Wagner at

Campbell Stables, a luxury equestrian facility located south of the highway in Bridgehampton, NY

6

Publisher’s Note

Welcome to the Hamptons

7

The Scene

Equicap with Rolls Royce

and Panerai

8

Watch Review

Panerai submersible collection

10

Wheels

Catch Formula 1 Fever

40

Fashion

Dressing well on and

off the beach

76

Food&Drink

Highclere gin goes from

garden to glass

HAMPTONS

18 INDUSTRIAL CHIC

Watchcase reinvents the hottest market

22 SAG HARBOR

How to spend the perfect Saturday

26 CLASSIC LIVING

The lure of equestrian properties

32 AESTHETIC SPLENDOR

Polo combines power and poetry

34 STAR ISLAND

Gurney’s new venue offers relaxed luxury

80 FOOD SCENE

Local chefs who dazzle palates Out East

Photo by Daniel Wagner

DEPARTMENTS

38 LENDER SPOTLIGHT

Q&A with Hall Structured Finance

42 L.A. BIOSCIENCE

Creating lab space for start-ups

46 DEVELOPMENT

565 Broome is as distinctive as SoHo itself

52 YACHTING

A seven-day itinerary plus yachting etiquette

58 REAL ESTATE LAW

New York transfer and mansion taxes

62 DEVELOPMENT RIGHTS

Successful zoning lot mergers

64 URBAN PLANNING

Financing TOD infrastructure

66 INTERVIEW

Lunch with Shah Gilani

68 DEAL MAKING

Coffee with David Steingard of Laughing Man

72 WEALTH MANAGEMENT

China’s booming hedge fund industry


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elcome to the Hamptons. I grew up in Europe and I’ve lived in the

beautiful South of France, so I had high expectations the first time I headed out

to the Hamptons 20 years ago.

I recall feeling underwhelmed as we sat in bumper-to-bumper traffic on that

long drive from the city. It was all asphalt and definitely not picturesque. Where

were the charming towns and scenic views I had heard so much about?

About three hours later we arrived in the most magical place and I have been

smitten with the Hamptons ever since.

After a long week in the City, nothing compares to the carefree lifestyle

enjoyed Out East cooling off in the waves with family and friends against the

backdrop of expansive blue sky and perfectly sculpted dunes. One of my best

memories of the Hamptons is running on the beach barefoot with my dog,

Striker, at dawn. But the Hamptons is also parties, events and, of course, horses.

Our Summer Issue of EQ delves deeply into everything that makes the

Hamptons one of the most desirable summer destinations in the world—and

certainly a favorite of many Equicap clients. We’re excited to extend our lifestyle

departments to include luxe watch reviews, summer fashion and great boats like

the Vanquish VQ 58. From how to spend a perfect day in Sag Harbor to the local

Hamptons food scene to the most coveted equestrian estates, EQ is on the scene.

Thanks to our partnership with Manhattan Motorcars, we had another

great cover shoot—this time with the GTO 250 Ferrari at Campbell Stables.

Our equestrian coverage includes a brief history of polo as well as insights from

Faye Weisberg, a seasoned broker with Saunders in Bridgehampton who has the

$40 million Campbell Stables listing. We also caught up with Deborah Srb of

Sotheby’s International Realty who’s representing The Watchcase in Sag Harbor

which has become one of the hottest markets in the Hamptons.

Of course at EQ we will always have real estate development in our DNA.

Don’t miss our piece on 565 Broome, the fabulous Renzo Piano development

in SoHo as well as stories about zoning (“Transferring Development Rights”),

lending (“Q&A with Mike Jaynes of Hall Structured Finance”) and wealth

management (“Fund Towns”). We’re thrilled that Bruce McGuire of the

Greenwich Economic Forum contributed his insights on the opportunities

created by China’s growing domestic hedge fund industry.

We hope you enjoy the new issue of EQ. As always, I welcome your feedback;

and check us out online at equicapmag.com.

Enjoy your summer!

Daniel Hilpert, Publisher & Editor-in-Chief

PUBLISHER &

EDITOR-IN-CHIEF

Daniel Hilpert

dhilpert@m-equicap.com

917.586.8364

MANAGING EDITOR

Peter Falco

PROOFREADERS

Sally Wang

Nate Geremia

Erika Gluckstal

EDITORIAL DIRECTOR

Diana Mosher

CREATIVE DIRECTOR

Gregory Cullen

CONTRIBUTORS

Colin Amrbose

Peter Ambrose

Alexander Berger

Matty Boudreau

Jacqueline Burt Cote

Hillary Davis

Stacy Dermont

Shah Gilani

Daniel Hilpert

Mike Jaynes

Patricia Kirk

Harvey I. Krasner

Justin Mastine-Frost

Bruce McGuire

Eric Miller

Jon Ruti

Alex von Salad

Michael Santora

Michael A. Smith

Jeffrey Steele

David Steingard

Stefanie Tabacow

Jack Williams

ADVERTISING INQUIRIES

sales@equicapmag.com

917.586.8364

EDITORIAL/GENERAL

INQUIRIES

info@equicapmag.com

EQ. is published by EQ Media LLC

©2019. Any reproduction or other use

of the articles, contents or photography

without express written consent by

EQ Media LLC is strictly prohibited.

EQ Media LLC, 10 Grand Central, Suite

1601, New York NY 10017 ©2019 All

Rights Reserved.

6

EQ. SUMMER 2019 ISSUE equicapmag.com


SCENE

IN MID-MAY, EQ

CO-HOSTED a Spring-time

gathering with ROLLS

ROYCE OF MANHATTAN

MOTORCARS AND

PANERAI in the West

Village. MORE THAN

250 CLIENTS and their

guests enjoyed specially

crafted cocktails, snapped

pictures behind the wheel

of the CULLINAN AND

DAWN and were enticed

by Panerai’s watch

collection. More photos of

the event can be found on

our events page @:

EQUICAPMAG.COM/PANERAI-ROLLS/

EQUICAP WITH ROLLS

ROYCE & PANERAI

PHOTOGRAPHY PATRICK MCMULLAN

equicapmag.com

SUMMER 2019 ISSUE

EQ.

7


THE PANERAI

WATCH REVIEW

DIVES DEEP

WITH

SUBMERSIBLE

COLLECTION

IN 2019

WRITTEN BY

Justin Mastine-Frost

Though technically the Panerai

Submersible’s roots can

be traced back to 1956,

and the brand’s massive 60mm

commission for the Egyptian

Navy known as the L’Egiziano,

until very recently Luminor

Submersible models have

remained rather fringe

offerings from the brand.

A handful of key releases have surfaced

more recently, but it was earlier this year at

SIHH where the brand went all-in on the

model, splitting it out into its own collection

and releasing over a half dozen new models

celebrating the occasion. Panerai’s design

aesthetics have always been distinct, and the

roots of both the Luminor and Radiomir trace

back to early military issue diving watches, though

with the Submersible an added layer of practicality

is added in the form of its unidirectional rotating

60-minute timing bezel — an obvious staple of the

modern dive watch category.

Of the pack of new releases, three particular examples

appeared in very limited production runs (less

than 30 examples each), being offered in a particularly

unique fashion. With the purchase of these three

PANERAI HAS

ADDED COLOR

TO THEIR

REPERTOIRE

WITH MODELS

LIKE THE

PAM959.

watches, not only were you getting an especially

rare piece from the brand, but also access to one of

three incredible and exclusive experiences tied to

the design of each watch. The adventures paired

with these watches included a diving expedition

with world record freediver Guillaume Nery,

an arctic exploration expedition with famed

conservationist Mike Horn, and finally

two days of training with none other

than Italy’s Marina Militare elite frogmen.

Sadly, each of these limited edition

models sold out quite promptly,

however the brand opted to issue

a variation of each model for series

production. All three models measure

47mm across, though are quite distinct

from one another in several ways. In the case

of the Marina Militare, it is cased in Carbotech

— the brand’s proprietary variant of forged

carbon fi ber, which is designed to be strong and

lightweight in a manner that easily surpasses

titanium. In the case of the Mike Horn limited edition,

its casing is in titanium, giving it a more conventional

look overall. That said, it stands out from

the pack on account of two key details. First, its bezel

is cut with its numerals in relief, which is out of

the ordinary for the brand, and second, the text that

would historically appear on its dial is instead printed

on the underside of its sapphire crystal —a unique

detail giving the piece an added layer of visual depth.

Images courtesy of Panerai Watches.

8

EQ. SUMMER 2019 ISSUE equicapmag.com


WATCH REVIEW

The final offering of the trio, dubbed the Submersible

Guillaume Nery, also features a titanium 47mm casing,

though unlike its counterparts a chronograph complication

is added to the equation. Screw-down pushers mounted to

the left side of the case assist in maintaining its 300m water

resistance, and from a functional standpoint Panerai remains

one of the few watch brands that opts to display the chronograph’s

elapsed minutes via a central hand rather than on

a compact subdial. While this may not sound like that big

of a deal at first glance, it does take a modest amount of

retooling to execute, however if you’ve ever used one you’ll

certainly appreciate the significantly increased legibility

that comes with it.

If none of this trio are enough to spark your interest, or if

there’s concern about the oversized 47mm case sizing being

overpowering, the brand has also scaled the Submersible

down to both 44mm and 42mm sizing of late. Personally, I

was immediately enamored with last year’s 42mm Submersible

release, and further additions in this case size have yet

again piqued my interest. Regardless of your wrist size and

preferences, there are plenty of Submersibles to choose from

this year, and none are a bad idea. ■

As expected,

all Submersible

models are fitted

with Panerai’s

unique locking

crown mechanism,

first launched

in 1950.

USING A

PROPRIETARY

CARBON CASE,

THIS 47MM

SUBMERSIBLE

PAM979 IS

SURPRISINGLY

LIGHTWEIGHT.

THIS UNIQUE BEZEL

DESIGN IS LIMITED

TO THE TWO MIKE

HORN SUBMERSIBLE

LIMITED EDITIONS

THAT LAUNCHED

THIS YEAR.

THE PAM683 IS

ONE OF A FEW

NEW MODELS

OFFERED IN A

MORE CONSER-

VATIVE 42MM

CASE SIZE.

equicapmag.com

SUMMER 2019 ISSUE

EQ.

9


WHEELS

U.S. Fans Catch Formula 1

FEVER

Photo credit: Shutterstock

WRITTEN BY Jack Williams

The average fan is male,

aged 25 to 44; and typically

has an annual income of

over $75,000.”

FOR MORE THAN 70 YEARS, FORMULA 1 HAS BEEN

one of the world’s pinnacle motorsports, intriguing

viewers through its mix of glitz and glamour, high speed

twists and turns and the billions of dollars’ worth of

spectacle that come with every traveling roadshow

event. Given the stacks of dollars Americans spend

every year on sports and entertainment, it’s no surprise

that F1, as it is known, has spent decades trying to successfully

tap into the U.S. market.

Despite mixed results in years past, recent data suggests that

the sport’s U.S. popularity may finally be gaining traction.

The sport itself—competing in a landscape dominated by

NASCAR and Indy Racing—previously had a stop-start relationship

hosting its own U.S. Grand Prix. Formula 1’s version of

the race returned to the U.S. in Austin, TX, in 2012. Before then

there were spells in Indianapolis, IN, 2000-2007; Phoenix, AZ,

1989-1991; Watkins Glen, NY, 1961-1980; Riverside, CA, 1960;

and Sebring, FL, 1959.

Data collected by Nielsen, a global information and measurement

company, shows that since the 2012 return to Austin, U.S.

interest has risen from 17 percent to 21 percent in May 2018, and

fans “very interested” or “somewhat interested” peaked as high as

24 percent during that six-year timeframe.

The profile of the average American Formula 1 fan reflects

the high-end aspects of the sport, which had annual revenues of

$1.827 billion during its 21-race season in 2018. The average fan

is male, aged 25 to 44; and typically has an annual income of over

$75,000.

Peter Habicht, the founder of Formula 1’s largest fan group in

America with around 2,500 members, believes that digital media

and increased behind-the-scenes access to the sport has helped

improve interest dramatically.

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

granting grands prix to Abu Dhabi, Singapore, Shanghai and Kuala

Lumpur. This benefitted the sport globally, but in the process

damaged the chances of maintaining a footprint in the U.S., where

live races (the primary focus) varied dramatically compared to

dedicated time slots tied to other motorsports.

U.S.-based Liberty Media, in 2017, acquired Formula 1 for $8

billion and their approach to coverage seemingly improved. At

the time, the new CEO declared that despite varying global start

times, the sport’s focus in the U.S. would be on Super Bowl-like

events for mobile content; behind-the-scenes access would keep

fans engaged away from such races.

Today, Habicht and others enjoy YouTube channels and podcasts

dedicated to drivers, on and off the circuit. “They’ve been

able to go behind the scenes, showing a more human side of the

sport,” says Habicht. Premiering in March 2019, a Netflix original

series, Formula 1: Drive to Survive, took an exclusive look at the

intense and lavish lifestyles of the sport’s drivers and their teams.

In a recent interview, Sean Bratches, the managing director of

commercial operations for F1, said that digital consumption in

the U.S. is up “significantly,” placing the U.S. as the No. 2 market

globally for F1.com from a nominal standpoint, behind the U.K.

On a ground level, too, Formula 1 has aimed to keep fans in

the U.S. engaged year-round—not just when the U.S. Grand Prix

rolls into Texas. In the past two years, fan events have been held in

Miami, Los Angeles and Chicago. Habicht encourages the sport

to host more, as well as embrace the celebrity ties the glamorous

sport already has in America—whether it be fans like Matt LeBlanc

and Keanu Reeves, or friends of drivers, like Stephen Curry.

Ultimately, the growth of Formula 1 in America will be dependent

less on the U.S. races themselves, those events continue

to attract a loyal fanbase. But, the focus will shift to what Formula

1 has become in the 21st Century: less a series of glamorous,

high-intensity events and their foot traffi c; and, more a

global, all-access media and entertainment brand with those

races at its soul. ■

10

EQ. SUMMER 2019 ISSUE equicapmag.com


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COVER STORY

12

EQ. SUMMER 2019 ISSUE equicapmag.com


COVER STORY

WRITTEN BY

Jack Williams

PHOTOGRAPHY BY

Dan Wagner

EVERYDAY

EXCITEMENT

CLASSIC CAR

REPLICAS

In August of 2019, auction house RM Sotheby’s will roll

out a classic 1962 Ferrari 250 GT SWB Berlinetta onto

the sales blocks at its flagship three-day event, in Monterey,

California, with early estimates already predicting

the vehicle could fetch anywhere between $8,000,000 and

$10,000,000. So coveted are Ferrari 250s of this era–from

Berlinettas to Testa Rossas, California Spyders to GTOs–

asking prices have continued to rise over recent years, and it

seems like every few months a record is broken as fees climb

higher and higher into the double-digit millions.

GTO ENGINEERING

PRODUCES CLASSIC

CARS THAT ARE

NEARLY 100

PERCENT THE SAME

AS THE ORIGINAL

AT A FRACTION OF

THE PRICE.

These enormous fi gures, however, come as no surprise to those in the classic car

community, given the rarity of the remaining vehicles from Ferrari’s 1953 to 1964 series

of 250s; their individual histories, which range from movie appearances to race wins;

and, of course, the incomparable driving experiences they still offer even today.

Let’s take the 250 SWB Berlinetta–only 165 were ever produced from 1959 until

1962, and stories, no doubt, are stamped to each and every one of them. This model of

250 came with the esteemed 3.0 liter, V12 engine that was indicative of Ferrari’s racers

at the time. SWB Berlinettas won the 1960, ’61 and ’62 Tour de France Automobile.

Heavier steel bodies (around 80-something of them, for street use) and light-weight

aluminum versions (for racing) made this the model of choice for 250 “customers [who]

were able to win the race on Sunday and drive to the office on Monday, all in the same

car,” Marcel Massini, a renowned Ferrari historian who advises the likes of Sotheby’s,

told EQ.

But what if such a car can’t be driven to work on Monday by those who wish to do so

some 60 years later? What if price points and availability hinder some from ever obtaining,

or fear of damage freezes those who are already fortunate enough to own?

equicapmag.com

SUMMER 2019 ISSUE

EQ.

13


COVER STORY

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

One such vehicle sitting in Manhattan Motorcars, on 11th

Avenue in Midtown Manhattan, looks to offer an alternative.

Upon fi rst glance, the gleaming black coupe looks just like

any other pristine SWB Berlinetta from decades ago.

Ferrari badge:

check.

Iconic body shape:

check.

Gear stick, dial positions, steering wheel design:

check, check and, well, check.

Price: $1.39 million

Wait, what?

Yes, according to Mark Lyon, whose company GTO Engineering

produced the car on show, this model is “nearly 100

percent the same” as the original, and at “one tenth of the price.”

The 250 GTO, as it is named, may have been inspired by

1950s and 60s Italian design, but it was actually constructed by

the hands of Brits in 2018. Based in Reading, England, just west

of London, GTO Engineering has focused on Ferrari servicing

and restoration since it opened in 1994. As Ferrari’s classic

models become ever older, parts wear out; replacements become

scarce or non-existent. GTO Engineering then steps in to make

the new ones themselves — which may mean building, say, a

replacement engine from scratch for a customer who wants to

take out a valuable original and protect it.

In 2008, however, the global fi nancial crisis hit, impacting

GTO Engineer’s forecasts for their traditional work. “I said to

my staff, ‘This is going to be a quiet year this year — what do

you say to building a whole car?,’” Lyon, whose company has 42

staff in its U.K. headquarters and an operation in Los Angeles,

explained. “Everyone liked the idea. So, we started then with a

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

What came next Lyon describes as “very advanced reverse

engineering.” Knowing he and his staff had either made or

owned all the parts to make up the likes of a short-wheel-base

(SWB) Berlinetta, they set to work on making their own version

of the car that was as close as possible in looks, performance and

feel to the original. That process took around two years from

design stage to the fi nished model, and, to date, the company

has made some 28 vintage Ferraris, 22 of which are like the one

in Manhattan Motorcars, Lyon said.

On average, three members of staff will now work on each

ground-up creation, and the process now takes around 18 months

for models of cars whose designs the company has worked on

in the past. (There are future plans for a California Spyder.) And

while Lyon admits that they will always have to source tires and

carburetor that cannot be made in-house, thousands of pieces are

individually crafted in Reading — even those that make up features

that perhaps weren’t around in the ’50s and ’60s.

“We never try and pass one of our cars off as an original car,”

Lyon said. “We’re making the perfect copy, but it is a copy.”

Air conditioning, for example, is one such request that GTO

Engineering is often asked to add to their Ferraris, keeping it

hidden to be true to the original design, while newer electrical

parts also improve reliability. The 250 GTO commissioned by

Manhattan Motorcars has an engine that is half a litre more

powerful than the original.

GTO Engineering also ensures that every vehicle it builds

has a unique I.D. number and paperwork that is tied to an original

Ferrari —even if their starting point is what remains of a

car that’s been burnt out or had numerous parts stolen off it and

nothing more. “We’re not destroying any cars,” said Lyon, who

14

EQ. SUMMER 2019 ISSUE equicapmag.com


COVER STORY

“We’re making the perfect copy.”

added it’s preferable if the model whose I.D. they

are working with is older but not essential. “We

don’t need any parts; we’ve got all the parts…We

like to have something physical if we can — so, a

bit of chassis, or some parts, if possible. But we

basically make the car.”

For that reason, Marcel Massini, the Ferrari

expert, estimates that while there were only 165

SWB Berlinettas created from 1959 to 1962, as

many as 300 or more additional versions with

Ferrari I.D.s could have been built by companies

similar to GTO Engineering, who operate in a

market that includes those working on replica

Jaguar E-Types and vintage Porsches.

This has split opinions in the car collecting

world. Massini, a purist, has called the use of I.D.

numbers tied to perhaps more mass-produced

Ferraris “sacrilege” and says it’s a shame that

“other Ferraris are being butchered and basically

killed to use their identities or their remnants

to build a 250 SWB replica.” Others see it as a

cheaper alternative to have access to a design

of Ferrari that otherwise remains out of reach

— like a classic painting purchased for an exorbitant

fee and then locked away in a private collection,

and not shared with the public.

Miles Miller, the chief operating officer

of Manhattan Motorcars, while sympathetic

towards the views of Massini and others, said

the focus should simply be on the craftsmanship

itself. Miller was not intending to commission

such a car when he visited GTO Engineering

around two years ago, but having been

impressed by the performance and build quality,

he and his father, Brian, who owns the business,

saw a car that they believe could offer a weekend

drive for those who cannot get their hands on

the original — or even a daily drive for someone

who does not want to damage their own rare

Berlinetta itself.

“There’s always going to be people who poo

poo it a little bit because it’s not original and

everything like that. It’s still a beautiful piece of

engineering; it’s stunning to look at; it sounds

great — so don’t over complicate it.”

Lyon, naturally, agrees. “There are some people

who don’t like it, but most people say, ‘I can

see why they’re doing that — that does make

a lot of sense,” he said. “You don’t want to use

something that’s very unique and irreplaceable;

you want something you can use and have fun in.

Not many people use the original cars anymore

— which is very sad, but it’s true.” Lyon hopes to

hear the sound and see the sight of a new GTO

out and about soon.” ■

equicapmag.com

SUMMER 2019 ISSUE

EQ.

15


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© 2019 Nest Seekers International. All rights reserved. Licensed Real Estate Broker NY, NJ, FL, CA. Nest Seekers International fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. All material presented herein is intended

for informational purposes only and has been compiled from sources deemed reliable. Though information is believed to be correct, it is presented subject to errors, omissions, changes or withdrawal without notice.


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HAMPTONS

CHIC

INDUSTRIAL

WRITTEN BY

Jeffrey Steele

HOW THE WATCHCASE HELPED CREATE THE

HOTTEST MARKET IN THE HAMPTONS

Photos courtesy of Sotheby’s International Realty

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EQ. SUMMER 2019 ISSUE equicapmag.com


HAMPTONS

THE FACTORY WAS

BUILT IN 1881 AS A

COTTON MILL AND LATER

CONVERTED INTO A

WATCHCASE FACTORY BY

BULOVA WATCH.


It was a bold

redevelopment

plan. There was

nothing like The

Watchcase in the

Hamptons.

— DEBORAH SRB

When the Long Island Railroad’s

Sag Harbor branch launched in

1870, the former whaling and

shipping village evolved into a

summer resort town, and later a World War II-era shipyard

center. Its industrial past now a distant memory, the village has

morphed into a favored retreat over the last 15 years. It’s now

the Hamptons’ strongest real estate market.

Comparatively recent developments

include the transformation of an old motel

into Baron’s Cove, a resort epitomizing

Sag Harbor’s waterfront revitalization, and

a proposed three-townhouse waterfront

project that includes a 1.25-acre public

park at 2 West Water Street from local

developer Jay Bialsky. Of earlier vintage is

The American Hotel which was converted

from boardinghouse and saloon into a

Sag Harbor icon 40 years ago.

But nothing in Sag Harbor history has

bested the redevelopment of the long-vacant,

138-year-old Bulova watchcase factory

into a highly coveted 63-residence

community of townhouses, factory

lofts, bungalows and penthouses within

one block of the waterfront, which is

renowned among those in the boating

community as one of only two deep water

harbors in the Hamptons, the other port

being Montauk.

TREASURED RELIC

“The creation of The Watchcase resulted

in an important but moldering Sag Harbor

structure redeveloped into a symbol of

village revival,” says Deborah Srb, Senior

Global Real Estate Advisor and LBA for

Sotheby’s International Realty in Southampton,

N.Y. “Sag Harbor has always been

a hub of activity,” she says.

“In the last five or 10 years, it has suddenly

spurred a greater interest among

young and old, from Palm Beach to Manhattan

to Europe even. Homes have gotten

bigger, urban living has migrated out

east, and something had to be done with

the factory,” added Srb. “The result was

a bold redevelopment plan. There was

nothing like it in the Hamptons.”

The factory was built in 1881, originally

serving as a cotton mill, according

to Srb. Later converted into a watchcase

factory by Bulova Watch, it was abandoned

after decades of use in 1979 and

then stood vacant for more than a quarter

century. But the building’s Victorian-era

design and rich legacy to the Sag Harbor

community were too significant to be

consigned to the wrecking ball. In 2008,

the village granted approval to developer

equicapmag.com

SUMMER 2019 ISSUE

EQ.

19


HAMPTONS

Cape Advisors to launch redevelopment of the

hulking but historic structure.

The redevelopment yielded a total of 47 factory

lofts including penthouses within the original

structure. An additional nine townhouses

were constructed on the grounds. The development’s

8 bungalows are situated at the base of

the townhouses.

The residences of The Watchcase came on

the market in 2014. “People were so excited

about this offering that they had waiting lists

of up to 880 prospective buyers,” Srb recalls.

“Sales people did nothing the first few weeks

but write contracts. Over the next four years,

they did very well. The response from buyers

was a result of the building itself being of such

special historical significance. But it also resonated

with people who wanted a low-maintenance,

concierge lifestyle at this price point.”

Contributing to success as well were unexpected

extras, like the development team’s

ability to place a 130-vehicle parking garage

beneath the entire block that encompasses The

Watchcase. All town homes and penthouses

offer private subterranean garages.

Watchcase amenities include an expansive

80-foot salt water pool, a spa massage room and

fi tness center complete with the Peloton experience.

A chef’s kitchen accompanies a private

clubroom, which can be reserved for private

parties. Above all, is the perspective enjoyed

atop the factory, from the vantage point of the

private rooftop terraces. All remaining penthouses

enjoy the highest elevation of any point

in Sag Harbor, overlooking village rooftops to

offer sunset panoramas of sailboats on the harbor

and an unobstructed view of the Fourth of

July firework display.

When Srb became the exclusive sales agent

of The Watchcase last year, several town homes

and penthouses remained unsold. Drawing

from her interior design background, Srb suggested

that the sponsor add elevators to the seven

remaining three-, four- and fi ve-story town

homes and lower their prices, which she considered

too high.

“You enter the parking garage off Division,”

Srb says. “Open your car door, and the elevator

is right there. You can take groceries up to

the kitchen, or bring suitcases to bedrooms on

higher floors.”

The town homes mirror the classic architecture

of Sag Harbor with shingled and clapboard

exteriors in Colonial Revival and Greek Revival.

Two penthouses remain available at $4.4 &

4.9 million with panoramic rooftop views and

three terraces with more than 1,200 square feet

of outdoor space. At $4.6 million, 43 Church Street is the largest

town home delivering nearly 5,000 square feet of livable space.

It mirrors the Italianate architectural style and industrial heritage

of the Watchcase with its red brick façade and ornamental

cornices. A top-level lounge complete with an expansive rooftop

WATCHCASE AMENITIES INCLUDE AMAZING VIEWS AND AN

80-FOOT SALT WATER POOL

deck, an outdoor shower and water views, leaves little to be

desired. According to Srb, the remaining 10 townhomes and

penthouses provide “a unique opportunity for yachtsmen,

the boating community and those desiring industrial chic

move-in ready walkability.” ■

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EQ. SUMMER 2019 ISSUE equicapmag.com


BUILD YOUR

PARADISE

A PARTICULARLY UNIQUE PIECE OF REAL ESTATE IN THE HAMPTONS.

MAKE THIS YOUR HOME. MAKE THIS YOUR VIEW.

MAKE THIS YOUR LIFE.

Photos courtesy of Stankevich Photography

AMAGANSETT, NEW YORK / SOUTH OF THE HIGHWAY / 400 FEET OF OCEANFRONT

FOUR PARCELS CONSISTING OF 1.9, 1.9, 2.8 AND 2.8 ACRES: TOTALING 9.4 ACRES

GROUP STANKEVICH

PEGGY STANKEVICH

T 631 377 0190

PEGGYSTANKEVICH@GMAIL.COM

GROUPSTANKEVICH.COM


HAMPTONS

A PERFECT

SAG

WRITTEN BY

Stacy Dermont

PHOTOGRAPHY BY

Barbara Lynne Photography

HARBOR

SATURDAY

Revered for its walkability,

historic

buildings and

small town vibe,

Sag Harbor Village is beautiful

every day, but on summer

Saturdays the appeal is

turned up to 11 with its weekly

farmers market and a variety

of events.

IF YOU’RE BOATING IN—

Find the farmers market just a stone’s

throw from the Sag Harbor Municipal

Dock (sagharborny.gov) on the grounds

of the Sag Harbor Yacht Club (sagharboryc.com).

In addition to seasonal produce,

you’ll be offered samples of local

edibles worthy of provisioning the fi n-

est galley, such as Amagansett Sea Salt

(amagansettseasalt.com), Open Minded

Organics fresh herbs (openmindedorganics.com),

and Sagaponacka Vodka

(sagaponackfarmdistillery.com). Plus,

everything you could need to throw a

fi ne picnic, like Mecox Bay Dairy cheeses

(mecoxbaydairy.com), Blue Duck

Bakery breads (blueduckbakerycafe.

com) and Wölffer Estate Vineyard wines

(wolffer.com), including their famous

rosé, chilled.

Locate anything your boating adventures

require next door at Sag Harbor

Yacht Yard & Ship Store (725-3838) and

Tight Lines Bait & Tackle (725-0740).

5

6 7

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EQ. SUMMER 2019 ISSUE equicapmag.com


HAMPTONS

1

CLOCKWISE: 1) YACHT CLUB. 2) SAG HARBOR

CINEMA, MAIN STREET. 3) DONUT FROM THE

GRINDSTONE. 4) THE AMERICAN HOTEL.

5) BEACH. 6) WINDMILL WITH JOHN STEINBECK

IMAGE. 7) VIEW ALONG MAIN STREET.

Across the street you’ll find phone

chargers and much more at Geekhampton,

the Hamptons’ only Apple Premier

Partner (geekhampton.com).

4

2

3

IF YOU’RE MOTORING IN —

You’re likely heading in on the Sag Harbor-Bridgehampton

Turnpike which becomes

Main Street. From this direction

you’ll be tempted to join the masses for

breakfast at Estia’s Little Kitchen (estias.com).

It’s popular for good reason,

but consider waiting until later for a

low-key lunch or dinner, if American/

Mexican appeals.

Just past the Mashashimuet Park

tennis courts (mashashimuetpark.org;

relax, everyone calls it “Mash” Park),

locals grab a real-deal egg sandwich to

start their days at the Cove Deli (283

Main Street, 631-725-0216). Their most

popular take on this Long Island classic

is bacon, egg and cheese— on a kaiser

roll, of course.

Across the street from “the Cove” is

Sag Harbor’s nearly 40-year-old independent,

Canio’s Books (canios.wordpress.

com). Grab the latest novel or a classic by

a local author like John Steinbeck, E.L.

Doctorow or James Fenimore Cooper.

Or is it time to linger over brunch at

Wölffer Kitchen (wolfferkitchen.com),

Baron’s Cove (caperesorts.com) or Il Capuccino

Ristorante (ilcaps.com) (beware

bottomless Bloody Marys)? Or maybe

grab a dozen different brioche-style donuts

from Grindstone Coffee & Donuts

(grindstonedonuts.com). Sag Harbor is

not known for its health foods—except

those found at Provisions Café (provisionsnaturalfoods.com)

and the sushi

at Sen (senrestaurant.com). Now that

you’re fueled, fi nding ways to spend the

rest of the best day in Sag Harbor is easy.

EXERCISE—Rent a paddleboard or

kayak from Flying Point (flyingpointsurf.com)

and walk it to the bay— or

rent a bike from Sag Harbor Cycle Company

(sagharborcycle.com) to visit nearby

Long Beach. A walk, or run, up and

down its length is over two miles.

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SUMMER 2019 ISSUE

EQ.

23


HAMPTONS

ENTERTAINMENT—Check the local

newspaper The Sag Harbor Express

(sagharbroexpress.com)—or tune in to

our famous time capsule of a radio station,

WLNG at 92.1 FM (wlng.com)—

to fi nd out what local venues are up to.

Many of our most architecturally and

culturally significant sites offer events

such as concerts, art exhibitions and

tours. Local draws include the Annie

Cooper Boyd House (sagharborhistorical.com),

Bay Street Theater (baystreet.

org), Eastville Heritage House (eastvillehistorical.org),

John Jermain Memorial

Library (johnjermain.org), Old

Whalers’ Church (oldwhalerschurch.

org), the Sag Harbor Whaling & Historical

Museum (sagharborwhalingmuseum.org)

and Temple Adas Israel (templeadasisrael.org).

SHOPPING—Sag Harbor boasts one

of the East End’s top antique stores in

Black Swan Antiques, its many one-ofa-kind

fi nds like old maps and signage,

maritime tools and vintage sports equipment

are located adjacent to top showroom

Grenning Gallery (grenninggallery.com).

Check out some of the other

galleries on Main Street like Keyes Art

(juliekeyesart.com) and Tulla Booth

Gallery Fine Art Photography (tullaboothgallery.com).

Don’t miss Washington Street for

some of the best period interior pieces

at Le Lampade (lelampade.com)

and Ruby Beets (rubybeets.com). And,

if you need a little sartorial infusion to

meet Sag Harbor’s casual dress code,

T-shirts and sweatpants are the top sellers

at Henry Lehr Men (27 Washington

Street, 631-808-3635).

DINING— If you want to make a

splash in this village’s dining scene, try

a waterside table at Le Bilboquet (631-

808-3767) or in view of the water at

Dopo La Spaggia (dopolaspiaggia.com),

on the porch of the American Hotel

(theamericanhotel.com), at Lulu Kitchen

& Bar (lulusagharbor.com) facing

the wood-fi red kitchen or looking down

on the water from the Beacon (beaconsagharbor.com).

The local American

Legion Post provides some top seats at

The Dockside (docksidesagharbor.com)

where outdoor seating faces the water

and, inside, you can check out cool art

fi lms screened across canvas walls.

If you want to dine in the lap of luxury

while trying out tables and chairs

that you might purchase for your own

JOHN JERMAIN

MEMORIAL LIBRARY

CEILING

SAG HARBOR MARINA

TUTTO IL GIORNO

AND URBAN ZEN

home, check out Urban Zen/Tutto il

Giorno— mother and daughter team

Donna Karan and Gabby Karan Felice

have sandwiched a tremendous amount

of design and deliciousness into this former

gas station. You’ll often find a DJ

rocking the house on Saturday nights.

(urbanzen.com; tuttoilgiorno.com)

NIGHT CAPS — You picked out a cigar

at the American Hotel, right? Top

spots for late night bites and bevs are

Back Page Patio Café (page63main.

com) and the nearby Murf’s Backstreet

Tavern at 64 Division Street. At press

time, Murf’s, a classic dive bar, was

about to open under new management

that promises to keep it just as small

and haunted as ever. Be very aware that

there’s a game of darts being played just

inside Murf’s front door; enter cautiously

and you just may survive to spend another

day exploring Sag Harbor. ■

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EQ. SUMMER 2019 ISSUE equicapmag.com


THE CLUBHOUSE

DINING BOWLING MINI GOLF ARCADE

EAST HAMPTON INDOOR TENNIS

174 DANIEL’S HOLE ROAD | EAST HAMPTON | WWW.EHITCLUBHOUSE.COM


EQUESTRIAN

‘CLASSIC’

LIVING

GTO 250 WITH

GAMA ALPACA

AT CAMPBELLS

STABLES IN

BRIDGEHAMPTON

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EQ. SUMMER 2019 ISSUE equicapmag.com


EQUESTRIAN

WRITTEN BY Daniel Hilpert | PHOTOGRAPHY BY Dan Wagner

THE EAST END IS KNOWN FOR

ITS HORSE SHOWS AND WORLD-

CLASS EQUESTRIAN ESTATES

equicapmag.com

SUMMER 2019 ISSUE

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27


EQUESTRIAN

he Hamptons are known for celeb-owned

mansions and charming

century-old cottages. The East End’s

idyllic setting with wide open spaces

overlooking endless farm fields, easy

access to the best beaches, a fabulous

social playground and home of the

Hamptons Classic also makes it ideal

for equestrian properties.

THERE IS NOTHING LIKE SUMMER IN THE HAMPTONS

to pique equine interests and see some of the world’s fi nest horses in action.

From the exhilarating, heart-pounding excitement of the Southampton Polo

Club to the glitz of the Hampton Classic, the East End is unparalleled on the

outdoor show riding circuit.

AN EQUINE TRADITION

The Classic as we know it today began in 1976. But its roots trace back to the

early 1900s when an annual horse show was held in Southampton off First

Neck Lane overlooking Agawam Lake.

The event was held every year until the outbreak of World War I. It returned in

the 1920s at the Southampton Riding and Hunt Club which had its headquarters

north of Southampton Village on a property along Majors Path. The show was

held every year throughout the 1930s, but it came to an end in the 1950s when the

Southampton Riding and Hunt Club broke up. At that time the role of the Majors

Path farm as home to the Hamptons’ prized horse show came to an end.

Even after the disappearance of the show, riding remained popular in the

Hamptons. By 1970, several horse farms were established on the East End

including Stony Hill Stables, the Topping Riding Club and Swan Creek Farms.

These farms held small unrecognized shows and were also the fi rst ripple of

an equestrian wave that would steadily crest across the Hamptons over the

next half-century and resulted in the Hampton Classic Horse Show.

During the 1980s, the Classic became an entrenched part of the Hamptons

social scene. The excitement is most palpable on “Grand Prix Sunday.” But

despite all its gloss and celebrity flash, the Classic’s true foundation is the surrounding

community. The rise of the local riding scene has paralleled the rise

of the Classic. What was once home to a handful of small stables has grown

into a horse-riders paradise with large equestrian estates.

STEEPED IN HISTORY

Every so often, a real estate agent has the opportunity to list one of the Hamptons’

stunning equestrian properties boasting acres of open space with beautiful

pastures, expansive fields and breathtaking homes to match.

One of the largest horse farms in the Hamptons today is Two Trees Stables

on Hayground Road in Water Mill. Originally constructed as a farm

in the early 20th century, the property was previously known as the old

Carwytham Farm. When David and Jane Walentas purchased it from the

Baldwin family in 1993 they undertook a major restoration and expansion of

the property.

The East End’s

idyllic setting

with wide open

spaces overlooking

endless farm fields

makes it ideal

for equestrian

properties.

SPECIAL THANK YOU TO

MICAELA BATTO FOR

LENDING EQ USE OF

GAMA ALPACA FOR OUR

PHOTOSHOOT.

28

EQ. SUMMER 2019 ISSUE equicapmag.com


EQUESTRIAN

equicapmag.com

SUMMER 2019 ISSUE

EQ.

29


EQUESTRIAN

“The design and development of this venue was fueled by a love for

horses and the sport.”

— FAYE WEISBERG

Today, Christopher Burnside, an Associate

Broker with Brown Harris Stevens, has

the listing on this coveted 65-acre equestrian

estate. Two Trees Stables is known as the

former site of the Mercedes-Benz Polo Challenge.

The estate features three horse barns

with tack rooms, lounge and bathrooms, two

indoor riding arenas, an extensive staff quarters

and acres of paddocks and polo fields.

Whether you’re looking for a gentleman’s

farm with a few stalls, a state-of-the-art

equestrian estate or a facility with polo fields,

the Hamptons offers it all. Dana Trotter, Associate

Broker and Senior Global Real Estate

advisor with Sotheby’s International Realty,

who has been an avid rider all her life says,

“working with a broker who understands the

intricacies of properties tailored for show

jumping, polo, dressage or even a lovely gentleman’s

farm will save time and frustration

for the buyer.” Also, many farms are not offi

cially listed, so it helps to be active on the

scene to fi nd off market opportunities.

STATE OF THE ART ESTATE

Campbell Stables, located south of the highway

in Bridgehampton, is recognized as one

of the fi nest luxury equestrian facilities. The

property was developed on 20 acres of prime

agricultural land by current owner and shoe

mogul Bob Campbell of BBC International

in 2015. “The design and development of this

venue was fueled by a love for horses and the

sport,” says Faye Weisberg, a seasoned broker

with Saunders in Bridgehampton, who has

the listing for $40 million.

The stunning equestrian estate sits on 18

acres and is comprised of five structures that

are configured around a central courtyard.

The traditional façades have white clapboard

with hunter green standing seam roofs and

crimson red window muntins and mullions.

Guests arrive through a grand entry

connected to several smaller intimate

courtyards with brick pathways and native

landscaping. The property includes

a 15,000-square-foot indoor ring, three

outdoor rings and 14 paddocks. The custom-made

stables hold 27 stalls. Vaulted

ceilings with exposed heavy timber beams

are accented by the black iron work and the

herringbone pattern brick inlays located in

the central aisle.

For those who love equestrian events like

the prestigious Hampton Classic—and wish

to live a true Hamptons lifestyle— these

properties embody what it means to love

horses and the East End. ■

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EQ. SUMMER 2019 ISSUE equicapmag.com


hamptons legendary equestrian estate

Set on 20.3 + /- acres this facility incorporates 27 stalls with drainage system, 14 paddocks, 3 outdoor rings, viewing stands, a 15,000 + /- sq. ft.

indoor ring with second floor viewing and entertaining lounge, 2 tack rooms, bathing stalls, managerial offices and staff housing.

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

Bridgehampton South | Exclusive $40M | BridgehamptonEquestrianEstate.com

Faye Weisberg

Licensed Real Estate Salesperson

Cell: (516) 662-7708

FWeisberg@Saunders.com

FayeWeisberg.com

2287 montauk highway, bridgehampton

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


EQUESTRIAN

Unparalleled

Aesthetic Splendor

CORE STRENGTH IS

KEY TO POWER THE

STROKES AS A PLAYER

LEANS OVER THE SIDE

OF THEIR MOUNT AT

TOP SPEED.

Staged in perfectly manicured bucolic idylls, and perceived as the preserve of only a

genteel aristocratic elite, polo is one of the most technically nuanced, strategically

complex and aesthetically dynamic sports in the world.

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EQ. SUMMER 2019 ISSUE equicapmag.com


EQUESTRIAN

The sport of kings dates to nomadic warriors in classical antiquity

more than 2½ millennia ago. Used for training cavalry,

the game was played from Constantinople to Japan in the Middle

Ages. The polo grounds of Tamerlane, a Turko-Mongol ruler

of the Balas lineage who conquered vast parts of Asia and founded

the Timurid dynasty in the fourteenth century, can still be

seen in Samarkand in Uzbekistan. The fi rst recorded polo tournament

was in 600 BC when the Turkomans

beat the Persians in a public match. The Persians

and the Mogul conquerors spread the

game across the eastern world where it fast

became the port of choice of the ruling elite.

Modern roots of polo date back to the mid-

19th century. An Irishman, Captain John Watson,

of the British Cavalry 13th Hussars created

the fi rst set of written rules for playing polo. The fi rst club was

established in the town of Silchar in Assam, India in 1834. Forty

years later, in 1874, the Hurlingham rules were created and marks

the moment when the modern sport became standardized and

codifi ed. It was also featured at the Olympic games from 1900

through 1936.

The game of polo is remarkably straight forward. Two teams,

each team consisting of 4 players and their mounts, attempt to

score goals by driving a small white ball into the opposing team’s

goal using a long-handled mallet ranging in size from 48 to 54

WRITTEN BY Daniel Hilpert

Polo boasts

an unrivalled

intensity.

inches (based on the height of the pony). The team with more

goals at the end of the match is declared winner.

Polo is played in four to eight 7.5-minute periods called chukkers.

Positions are fluid — players are expected to transition

around the field, a 160-yard-wide by 300-yard-long area and fi ll

in where needed. However, the most offensively minded player

is typically positioned highest up in the stack and focused on

scoring.

Polo boasts an unrivalled intensity. The

sport requires considerable physiological

strength, huge muscular and cardiovascular

endurance. Core strength is key to power

the strokes as a player leans over the side of

their 16-hand high, 1,100-pound mount at top

speed in a race for a loose ball against an opponent.

Mental resilience is required to not pull out when players

urge their mounts directly towards the same ball at speeds in

excess of 30 miles per hour.

Polo uses a handicap system delineated in “goals” to rank

players ranging from -2 up to 10. Teams are built to have matching

handicaps. Most professionals are rated 4 goals and above.

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

This handicap system has the convenience of also allowing experienced

polo players and teams to be matched against those

just getting into the sport. See you on the field. ■

Two Trees Farm

Bridgehampton

The iconic Two Trees Farm, famed for hosting the Mercedes Benz Polo Challenge,

is one of the finest world-class equestrian properties in the country.

$17,995,000 | 65± Acres | 3 Horse Barns | 88 Stalls | 2 Indoor Riding Arenas

Renovated Historic Farmhouse | Staff Quarters | Paddocks and Polo Fields

TwoTreesEstates.com

Christopher J. Burnside

Licensed Associate Real Estate Broker

631.537.4320 c: 516.521.6007

cburnside@bhsusa.com


GURNEY’S STAR

ISLAND IS AN EXCITING

NEW VENUE THAT

SHOULD BE ON EVERY

HAMPTONS LUXURY

SEEKER’S BUCKET

LIST. RIGHT: SHOWFISH,

GURNEY’S STAR

ISLAND’S SEAFOOD

RESTAURANT

HOSPITALITY

STAR ISLAND

RESORT

A New Standard to Beat in the Hamptons

WRITTEN BY Hillary Davis

PHOTOGRAPHY Gurney’s Resorts

CHEF JEREMY

BLUTSTEIN

BELIEVES IN

MICHELIN-

LEVEL CUISINE

AND HAS BEEN

CALLED A ROCK

STAR ALCHEMIST

OF LOCAL

PRODUCE

34

EQ. SUMMER 2019 ISSUE equicapmag.com


HOSPITALITY

SLIP INTO THE UNHURRIED LIFESTYLE OF STAR ISLAND IN ROOMS THAT REFLECT LAID BACK LUXURY.

Gurney’s has done it again, reinventing the Hamptons experience with

their uber-chic oceanside resort, Gurney’s Montauk, now seamlessly

and effortlessly linking in minutes to its brand-new Gurney’s Star

Island Resort on Lake Montauk.

When you arrive at the Star Island complex, look for the

lighthouse. Open its door. Enter the tranquil interior and

you will immediately detect an elevated level of hospitality,

significantly raising the bar because the ambiance, service

and quality are unique and like no other in the Hamptons.

Expect the best.

Book your room with a balcony facing the marina so

you can admire admire the yachts at dock. Rooms reflect

laid back luxury, so you’ll be able to unplug from everyday

life and slip into the unhurried lifestyle of Star Island.

If you’re feeling energetic, sign up for sport fishing charters

leaving right from the dock, a catamaran charter or learn

how to sail in their 28-foot Catalinas.

At the resort, wine and dine at Showfish, their signature

restaurant, helmed by one of the best chefs on Long Island,

Jeremy Blutstein, formerly of Almond Restaurant. A firm

believer in Michelin-level cuisine served casually and celebrating

only the best seasonal produce, he is a magnet for

day fishers bringing in scallops, monkfish, black bass, tile

fish and more to his dock, farmers and foragers traveling

out to Montauk to offer him wild mushrooms and ramps,

then taking it all in and creating an innovative menu.

Peruse his lobster tank. He’s equally happy to prepare

the simplest lobster, just for you, with a bottle of the best

champagne in the house. Most, if not all, on his menu is

sourced within a 20-mile radius. A rock star alchemist of

local produce, his reputation is for cutting-edge cuisine and

is worth seeking out.

After dinner, find your way to the outdoor fire pits set

near the boat slips in the marina. Take in the evening air,

light a cigar, sip a brandy. You might spy a celebrity or supermodel

swaying to live music by the outdoor bar. You

may stay up past your bedtime.

The marina the hotel and restaurants face is the biggest

in the Hamptons, accommodating superyachts up

to 220-feet in size, making it an enchanting safe haven

for weekend mooring within easy cruising distance of

New York City, avoiding city docks and curious onlookers.

Yachting Magazine named it “One of the Top Ten

Marina Destinations in North America, Mexico and the

Bahamas.” Montauk provides easy access to Long Island

Sound, the ability to scoot over to Nantucket, Block Island

Newport or down to the city in no time. If you don’t have

a yacht, Star Island can connect you with a seaplane and

yacht service to those destinations.

If you have a yacht or are chartering one, you can take

a slip in the marina or pick up a mooring and skiff in to the

docks of the resort for supplies, take out gourmet food or

enjoy an evening in town.

Accessing Montauk and Gurney’s Star Island by other

means is straightforward. Arriving via air? Montauk Airport

is a few minutes away, so you can skip the traffic, hop

on a Blade chopper in the city, and arrive in only 45 minutes.

If you’re braving the infamous traffic of the Long Island

Expressway, travel past the Hamptons and be sure to

take the time to check out the wineries on your way back

to New York City.

Take a day to shuttle over to Gurney’s Montauk to experience

their salt-water spa services offered during the summer

season under a tent on the beach. Luxuriate in their

ocean-fed salt water pool or relax on a cabana-shaded kingsize

day bed shaded by umbrellas and cabanas on the sand

with comprehensive food and beverage list at your fingertips

or saunter along the vast pristine beach along the Atlantic

Ocean, the only sound coming from the crashing waves.

Gurney’s Star Island should be on every Hamptons luxury

seeker’s bucket list. This is an exciting new venue setting

itself to possibly become one of the most in-demand

resorts and restaurants in The End.

Prediction: No Vacancy. ■

equicapmag.com

SUMMER 2019 ISSUE

EQ.

35


A Gilded-Age Getaway

Summer

in the Berkshires

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Q&A

LENDER SPOTLIGHT

MIKE JAYNES,

PRESIDENT OF HALL

STRUCTURED FINANCE

SAYS HSF IS SLATED

TO LEND OUT $400

MILLION IN 2019

WRITTEN BY Daniel Hilpert

PHOTOGRAPHY BY HALL Group

RENDERING OF 284-KEY, DUAL-FLAG ALOFT (144 KEYS) /

ELEMENT (140 EXTENDED STAY KEYS) HOTEL IN ORLANDO, FL

High

VOLUME

UNDER THE UMBRELLA OF DALLAS-BASED HALL

GROUP, founded by Craig Hall, HALL Structured Finance

(HSF) is a direct lender that focuses on providing non-recourse,

fi rst lien construction loans for commercial real estate

projects across the U.S. HSF was the #1 non-bank hotel construction

lender in the country in 2018. HSF works to provide

alternative fi nancing solutions for high-quality projects that

cannot meet their fi nancing needs through a traditional bank

lending platform. Daniel Hilpert, Publisher of EQ interviewed

Mike Jaynes, President of HALL Structured Finance about

markets to watch, recent transactions and what’s next for HSF.

What sets Hall Structured Finance apart from other hotel

lenders?

Mike Jaynes: We set ourselves apart from other lenders by

offering non-recourse terms, flexible underwriting standards,

fast execution and up to 75% LTC. Another differentiator is that

our parent company HALL Group is a real estate developer, so

we bring internal expertise in development and construction to

our clients.

What is the overall vision of founder Craig Hall? Where does

he want to take the business?

Craig Hall would like to find ways to integrate new technologies

into our lending program, such as AI that can assist with due

diligence. HSF is a big focus for the company. HALL Group is

also involved in the ownership, management and development

of real estate, financial lending, angel investing and winemaking.

In fact, Craig is a New York Times best-selling author and

he just published his seventh book, titled BOOM: Bridging the

Opportunity Gap to Reignite Startups.

Which markets does Hall currently like—where are you

comfortable investing? How do you feel about New York

City with respect to the hospitality industry and other major

markets such as Miami and LA?

We are targeting good opportunities in all primary and strong

secondary markets across the country. We provided $20 million

in construction financing for an EVEN Hotel in Miami, which just

recently had its grand opening, and we have also financed several

hotels in submarkets surrounding LA. We have an interest

in NYC, and have done loans in the past, but we haven’t found a

38

EQ. SUMMER 2019 ISSUE equicapmag.com


LENDER SPOTLIGHT

fit recently from a lending perspective. A lot is in the

New York hotel pipeline, so it’s a market we would be

cautious about.

Are there specific geographic markets you avoid?

We will look at any market, and we typically underwrite

to the street corner and the submarket. It is very

deal-oriented, and even within an underperforming

market there can be good opportunities.

Which asset classes do you like, for example ultra-luxury

or limited service?

We will most aggressively target well-flagged limited

service, select service and extended stay hotels in

major markets, followed by branded and soft branded

full-service hotels. We will also selectively finance

well-conceived boutique/independent hotels. We

target hotels with multiple demand generators.

What makes you different from competitors in

terms of ease of close, etc.? You are a non-recourse

lender; tell us about your non-recourse feature.

We still go through the same closing process as a

traditional bank, but as a small private lender and flat

organization, we are more nimble and able to move

more quickly in the closing process. We are primarily a

construction lender, so consistent with industry standards,

we do have recourse during construction, but it

converts to non-recourse upon completion.

Tell us about some of your recent transactions that

were noteworthy or unusual.

• For Marriott Autograph in Scottsdale, AZ [we

secured] a loan totaling $53 million to finance the

expansion, redevelopment, flagging and rebranding

of the existing 32-room CopperWynd Resort into the

boutique Autograph Scottsdale Resort.

• Hampton Inn in Kissimmee, FL just closed in early

June. The loan totaling $15.5 million was secured to

finance the construction of a Hampton Inn in Kissimmee,

FL located just south of Orlando. The 128-key

hotel is slated to open in June 2020 and is being

constructed by Garry Hasselbacker and Chet Patel of

Pinnacle Hospitality Group.

• For Dual-Flagged Hampton Inn & Suites and

Home2Suites in Las Vegas, NV we secured a loan

totaling $42 million to finance the construction of the

dual-flagged hotel immediately adjacent to the Las

Vegas Convention Center.

What do you see in the company’s future? Will you

put out more $$ this year? What markets to you

want to be more active in?

We have continued to grow over the past several years

and see that continuing. We are slated to lend $400

million this year, which would be our highest volume

year-to-date. We would like to do more loans in major

markets in Texas, such as Dallas, Houston, Austin

and San Antonio. We are also continuing to diversify

product types, providing construction loans to hotel,

multifamily, student housing and spec office deals

across the U.S. ■

NAPA

VALLEY

EMPIRE

CRAIG AND

HIS WIFE

KATHRYN

AT THEIR

WINERY IN

NAPA

Craig Hall, Founder of

HALL Group, is a man of

many interests. More than

20 years ago he entered the

vineyard and wine business

in California with his wife

Kathryn. They have risen

to the top with a perfect

score from Robert Parker’s

Wine Advocate and in 2013

became the first LEED

Gold winery in California.

“We are very proud of that,” says Hall. “We’re very committed to the

environment across our businesses and LEED certification is something we

pursue at all of our new developments.”

Today the Halls have three wine brands: HALL, principally known

for Cabernet Sauvignon and Sauvignon Blanc; WALT, known for Pinot

Noir and Chardonnay; and BACA, their newest brand producing high

quality Zinfandel.

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

“Kathryn has been involved in the California wine industry since her family

purchased a vineyard in the 1970s. When we started our own winery, we

intentionally wanted to make very high-quality cabernet with grapes from

the best parts of Napa Valley.”

According to Hall, the wine business is challenging and complicated. It

involves farming, manufacturing, marketing and creating new innovations

with technology while producing an exceptional end product. “For these

reasons it’s also a very gratifying and fun business.”

In many ways winemaking has not changed for centuries. The Halls still

employ gravity flow, for example, which might sound high tech but is actually

the way wine was made 5,000 years ago. “The theory behind gravity

flow is that you do not use pumping that would hurt the skins of the grapes.

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

On the other hand, the Halls choose to use new technology when it

enables them to produce a better product. “We used to have people sort the

grapes before they would go into the fermentation tank to be processed.

Today, we use optical sorting machines that — while expensive — are much

better than humans at the sorting process,” says Hall. “Other high-quality

wineries like ours are adopting this new technology as well.”

The Halls have also distinguished themselves from other vineyards in

Napa by incorporating art pieces from their impressive collection throughout

the vineyard experience. “Years ago, I started using art in some of our

commercial properties because I thought it was a great opportunity to

share my love of art with others and have them experience the joys of the

artwork I had collected,” explains Hall. “Over time, I’ve found that it is really

appreciated by visitors at the wineries and there is no question that it

helps enhance the experience of enjoying a great glass of wine to be in the

presence of great art against the beautiful Napa backdrop.”

equicapmag.com

SUMMER 2019 ISSUE

EQ.

39


FASHION

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

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

in a sometimes stormy sea of menswear.

Summer isn’t quite summer without swimwear. The category has exploded over the past couple of years. Options are endless and

finding the right fit for your body can mean the difference between Alain Delon in Purple Moon or John Candy à la Summer Rental.

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

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

WRITTEN BY Jon Ruti, Owner of Rivay

These Kuta solid swim trunks from (another) classic

French brand, Hartford, come in a variety of understated,

solid colors. Keep it simple and start with

a solid pair. Once you find the optimal inseam, go

crazy and add print and pattern to the rotation.

>

<

When the time comes to run into town for a resupply of

ordinance friendly beverages, those trunks are going to need

a friend. Yes, you should be wearing a shirt the moment your

feet go from sand to pavement. Opt for our slub t-shirt in a

range of custom, sun-faded colors. Slub cotton has a luxurious

texture that’ll let the summer breeze pass through with ease.

Staying in town for lunch? Lose the trunks and change into a pair of our

tailored Isle Italian cotton shorts or our Rèmy linen trousers. Keep the

t-shirt, cover the toes with an espadrille from Soludos or Manebi and

Nick & Toni’s is your uncle.

>

Assuming you don’t succumb to

the afternoon nap, make your

way back to the beach for sunset.

But careful, a beach sunset

presents the all too familiar sartorial

challenge—summertime

layering. While a sunset brings

with it beautiful colors, it can

also bring a chill that’ll spoil any

bonfire. Sure, a sweatshirt will

get the job done, but if you’re

wearing tailored shorts or linen

trousers, that calls for a more

elevated option. Our Antibes

Awning stripe popover or Santos

Indigo Hooded shirt has just the

right amount of bohemian Ditch

Plains circa 1972 to keep you (or

companion) warm into the night.

And let’s face it—wrapping

yourself in luxurious Japanese

indigo is always a good idea. ■

>

This summertime

style should get

you through

Labor Day with

ease. Don’t worry

about sleepwear

recommendations,

you can sleep

come fall.

Photography courtesy of Jon Ruti

40

EQ. SUMMER 2019 ISSUE equicapmag.com


TWO WEST WATER ST

SAG HARBOR


DEVELOPMENT

CALIFORNIA NANOSYSTEMS

INSTITUTE AT UCLA, A HUB

OF INTERDISCIPLINARY

RESEARCH AND EDUCATION,

PROVIDING A CUTTING-EDGE

R&D INFRASTRUCTURE,

ENABLING RESEARCHERS

AND STARTUPS TO DISCOVER,

DEVELOP, AND IMPLEMENT

TRANSFORMATIVE TECH.

WRITTEN BY Patricia Kirk

LA’S NEW

BIOSCIENCE

SCENE

DEVELOPERS CREATING LAB SPACE

FOR BIOSCIENCE START-UPS TO

GROW LOCALLY

42

EQ. SUMMER 2019 ISSUE equicapmag.com


DEVELOPMENT

Photo Credit: Brad Feinknopf/CSNI

Los Angeles has been losing its life scientists to

San Francisco and San Diego for decades. Now the

region’s economic leaders, bioscience stakeholders

and real estate investors are joining forces to grow

the life science and biotechnology sectors locally.

Home to prestigious research institutions,

Los Angeles has a large community

of bioscience startups, but they have

nowhere to grow. As a result, the region

suffers from “brain drain,” with many

promising scientists moving to life science

clusters in San Francisco and San

Diego, says Allan Glass, a principal at

HATCHspaces ® LLC.

Glass and partner Howard Kozloff

are joining efforts of local economic and

government leaders and other stakeholders

to stop this exodus by providing

purpose-built space for life science

companies to expand in the Los Angeles

marketplace.

Glass notes that the Los Angeles

life science real estate market includes

startups currently in non-profit research

incubators and on-campus research facilities

at the University of California

Los Angeles (UCLA); University of

Southern California (USC), California

Institute of Technology; California

State University, Los Angeles and

Harbor-UCLA Medical Center. Glass

adds that, life science companies located

elsewhere are also attracted to the Los

Angeles region because it has one of the

most ethnically diverse populations in

the nation, which is of utmost importance

for clinical drug trials.

The Los Angeles County Economic

Development Corporation reports that

the region’s growing bioscience industry,

which includes 2,448 companies,

generates $20.5 billion annually and

adds 162,000 jobs and $40.3 billion in

economic activity to the local economy.

The report also notes that the region’s

600 life science research facilities receive

$1 billion yearly in funding from the National

Institutes of Health.

Kozloff and Glass have been real estate

developers for about two decades,

but their fi rst foray into the life science

market is HATCHlabs @ LA Bioscience

HUB, an adaptive reuse project

that repositioned an 80-year-old,

22,000-square-foot warehouse to purpose-built

lab space. The project is located

at 5370 Alhambra Avenue in East

LA’s El Sereno neighborhood, an area

branded by the city and county as the

LA Bioscience HUB.

This emerging eastside cluster is anchored

by LAC+USC Medical Center

and the USC Health Sciences Campus

on the west and Grifols Biologicals, a

multinational pharmaceutical company

and California State University, Los

Angeles (Cal-State, LA) to the east.

Another new life science incubator, the

Rongxiang Xu Bioscience Innovation

Center, which was funded in part by a

grant from LA county, is scheduled to

open the end of this year on the Cal-

State, LA campus.

We are providing

a ‘warm shell’

that tenants can

customize to their

own needs”

—Allan Glass, HATCHspaces

FLEXIBLE SPACE FOR LIFE

SCIENCE NEEDS

A former furniture warehouse, HATCHlabs

is the fi rst life science, adaptive reuse

project to rise from the industrial district

located between these institutions. It provides

a plug & play setup that enables tenants

to get up and running in 3.5 months,

when it usually takes 12–14 months to

build-out lab space, says Glass, noting

that all systems have been built to city fi re

and safety code standards for all levels of

lab space, including the creation of fire

control zones within the suites, so tenants

would typically only need over-thecounter

approvals to begin TI work.

“We are providing a ‘warm shell’

that tenants can customize to their own

needs,” he explains. Space is built out as

close to finished as possible, while remaining

flexible enough to accommodate

the wide variety of life science needs.

The building contains infrastructure

required for wet lab and cleanroom

space, including a new electrical system

that is heavier than normal for a

building of this size, says Glass. The

space can be divided or combined to

create variably sized space and adapted

to any type of life science research

use, as well as biotech, medical device

or agriculture testing. Each suite also

has separately metered electrical service

and HVAC system, so tenants can

control their own electrical usage and

internal environment.

As first movers, the biggest challenge

for the developers was finding financing,

continues Glass, explaining

that life science startups can’t commit

to space until they obtain funding and

are assured when space can be delivered.

Also, without comparable real estate in

the marketplace, commercial banks and

institutional lenders found it diffi cult to

quantify the fi nancial aspects of the project.

“We couldn’t rely on the local market,

so we triangulated our proposed life

science rents to fall below market rents in

San Francisco and San Diego and within

a similar cost range for companies

using two to four benches in a local incubator,”

he says.

Currently, incubators’ tenants are

charged per bench. By the time a startup

is ready for a HATCHlabs facility they

have typically grown to need four to six

benches. Rents at HATCHlabs are approximately

20—40 percent less than in

San Francisco and San Diego, Glass contends,

noting that HATCHlabs provides

startups coming out of incubators room

to scale up at a price comparable to what

they’re already paying in a local incubator.

Unable to secure funding through

conventional lenders, the developers engaged

Equicap, a NYC-based debt and

equity investment banking intermediary.

Equicap’s managing director Daniel

Hilpert arranged the construction loan

through a private lending source. Hilpert

said, “Our lender MB2 was the perfect

fi t for this project. They understood the

business plan and executed for the client.”

Recently completed, HATCHlabs

is 75 percent leased. Its fi rst tenant,

TCRCure Biopharma, a cancer research

firm, now occupies three lab suites, or

about 3,500 square feet, but has leased a

fourth contiguous suite to provide room

for expansion.

equicapmag.com

SUMMER 2019 ISSUE

EQ.

43


DEVELOPMENT

THE LA BIOSCIENCE HUB IN EL SERENO IS TAKING AN ORGANIC APPROACH TO BLENDING IN WITH THE EXISTING COMMUNITY. BOTH THE INTERIOR

AND EXTERIOR OF 5370 ALHAMBRA AVENUE INCLUDE ART BY MURALIST ALEX POLI.

ADAPTIVE REUSE CHALLENGES

Architect Brian Spence, a principal in

the Los Angeles studio of New Yorkbased

BAM Architecture Studio, says

the biggest challenges to adaptive reuse

involved structural and zoning issues.

If a new building is constructed today,

for example, current zoning code would

require an additional five-foot setback

along the entire front of the building.

HATCHlabs was comprised of two

buildings on two adjacent lots. Additionally,

the two lots’ addresses needed

to be formally combined by the city.

Excavation further revealed hidden

conditions, including undersized column

footings that had to be made seismically

sound.

The building had “good bones,” but

needed a new façade. To avoid moving

the front of the building back to comply

with the setback requirements the front

wall was retained intact and tied into

the new structure with a new roof. The

main building, which has bow-arched

trusses that provide open space without

columns, was attached to a metal shed

with a different roof system. While this

was technically difficult, it was less

costly than the alternative, and no rentable

space was lost, he notes.

Spence is expecting similar issues

and hidden conditions at HATCHlabs

X, the 11,000-square-foot building next

door, which Glass and Kozloff acquired

and plan to reposition as lab-office

co-working space.

The developer duo were deliberate

in their efforts to allow HATCHlabs

to assimilate into the existing East LA

neighborhood culture, so they hired

muralist Alex Poli, who goes by street

We want to enhance

economic activity

by creating

opportunities with

local businesses”

—Allan Glass

artist name of Man One, to paint a mural

on the facade of the building that reflects

what’s happening inside: symbols for the

four “happy chemicals” produced in the

human body—dopamine, oxytocin, serotonin

and endorphins—and ref lects

that back upon the community.

Poli’s work also includes a portrait

of local bioscience hero Willie Zuniga,

an East LA native who is now president

of Grifols Biologicals. Zuniga attended

the neighborhood’s local schools,

including Wilson High School and

Cal-State LA. He was instrumental in

launching a very successful summer

STEM (science, technology, engineering

and math) program at the local

high school and established a summer

program for children to teach them

about medical careers beyond patient

care, Glass says.

CREATING SCATTERED CLUSTERS

The DNA of Los Angeles’ life science/biotech

sector is different from

San Diego’s campus-style cluster, with

a network of small clusters scattered

throughout the Los Angeles region and

scientists collaborating through technology.

The various types of bioscience

companies— including medical research,

pharmaceutical, medical device,

biotechnology, bioengineering and scientific

testing—tend to cluster nearby

anchors with similar purposes.

For example, Glass notes, companies

conducting clinical trials may locate

nearby research hospitals like The USC

Norris Cancer Center or City of Hope,

while biotech startups are locating in

biotechnology hubs adjacent to the

Photo Credit: Brad Feinknopf

44

EQ. SUMMER 2019 ISSUE equicapmag.com


DEVELOPMENT

new $63-million, 78,000-square-foot,

LA BioMed incubator at Harbor UCLA

Medical Center in Torrance, which

opened earlier this year, or the California

NanoSystems Institute at UCLA, an

innovative, multidisciplinary research

center focused on translating discoveries

into knowledge-driven commercial

enterprises.

These smaller Los Angeles-area

clusters are taking a different approach

to providing the amenity-rich environment

that today’s bioscience community

expects. The LA Bioscience HUB

in El Sereno, for example, is taking an

organic approach, reaching out to local

businesses to grow amenities around

life science facilities. A popular taco

shop and brewery are located nearby

HATCHlabs, and there is a local coffeehouse

across the street that both

serves as a community hub and operates

an art and literary foundation for

local residents.

“We don’t want to displace what’s

already there, we want to enhance economic

activity by creating collaborative

opportunities with local businesses,”

Glass says, noting that this approach is

important to preventing gentrification

of the neighborhood. The jobs being

created will offer opportunities for a

range of educational backgrounds, from

community colleges to PhDs.

While the region’s bioscience industry

lags behind San Francisco and San

Diego, there is a big push to grow this

sector locally, and indications of positive

outcomes are emerging. PwC and

CB Insights, for example, reported that

the investment in bioscience companies

in Los Angeles and Orange counties

experienced a 97 percent surge in Q1

2018 alone, to $1.9 billion.

Going forward, Glass and Kozloff

are focused on filling the region’s

unmet need for life science space.

They recently closed escrow on a

12,000-square-foot medical office

building in the Westwood Village

neighborhood nearby the UCLA Medical

Campus, which they plan to convert

to office and lab space. And over the

next couple months, they will close escrow

on two more industrial buildings,

totaling more than 190,000 square feet,

nearby Amgen’s headquarters in Thousand

Oaks, continuing to move towards

their goal. ■

Alexandria

Center

Accelerating

New York’s

Life Science

Cluster

OPENING IN MID-2017, THE ALEXANDRIA

CENTER FOR LIFE SCIENCE, DEVELOPED

BY ALEXANDRIA REAL ESTATE EQUITIES,

is positioning New York City for a

leadership position in the life science

market. This relatively new cluster is

currently ranked seventh nationally

based on size of laboratory inventory,

size and long-term growth in life science

employment, concentration of key

scientists and size of funding resources,

according to a CBRE report. Elements

driving this change in momentum are

strong municipal support, a major

concentration of life science talent and

more than 1.5 million square feet of lab

space under construction.

More patents are coming out of the

New York life science cluster than San

Francisco and Boston combined, says

John H. Cunningham, executive vice

president and New York City regional

market director at Alexandria Real

Estate Equities, who notes that both U.S.

and European life science companies

are establishing beachheads in the city.

Strategically located along Manhattan’s

East Side Medical Corridor at

29th St. and 1st Ave., Alexandria Center

is capitalizing on its proximity to top

academic-medical institutions and

major hospitals to recruit life science

and biotechnology firms to the cluster.

With the addition of the 550,000 square

foot North Tower to the campus’ two

existing 15-story towers, the Alexandria

Center will provide approximately 1.3

million square feet of first-rate office

and laboratory space designed to foster

cross-institutional collaboration.

The completed East and West Towers

are both LEED Gold and Platinum-level

and Wired Certified, demonstrating

Alexandria’s commitment to providing

sustainable campuses on the cutting

edge of technology. The campus features

a full range of amenities needed by

life science companies to attract talent,

including a state-of-the-art digital

conference center and event space; two

culinary establishments; an award-winning

urban farm; a fully integrated

fitness center and a waterfront park and

esplanade.

This cluster is attracting unique

business units of international pharma

companies and serial entrepreneurs,

but is also nurturing start-ups, seedstage

academic spin-outs and growing

early-stage companies with establishment

of Alexandria LaunchLabs, a life

science start-up incubator, and the

Alexandria Seed Capital Platform, a

funding model catalyzing seed-stage

life science investment. Current tenants

include multinational pharmaceutical

companies, including Eli Lilly and

Company, Pfizer Inc. and Roche, to

early-stage companies spinning out

of the Accelerator Corporation, which

provides early-stage biotech companies

business, scientific and venture capital

support.

Alexandria Real Estate Equities also

has acquired two nearby properties,

the 593,000-square-foot Pfizer building

at 219 East 42nd St. and a 177,000-sq.-

ft. industrial building in Long Island

City, which are being redeveloped for

life science and biotech tenants.

“We’re building an ecosystem that

will allow growing companies to remain

within our platform,” Cunningham

says. “People want to stay here with

peers because it helps them grow and

flourish.”

equicapmag.com

SUMMER 2019 ISSUE

EQ.

45


DEVELOPMENT

46

EQ. SUMMER 2019 ISSUE equicapmag.com


DEVELOPMENT

565

BROOME

AS SOPHISTICATED AND

DISTINCTIVE AS SOHO ITSELF

WRITTEN BY Jeffrey Steele

Over time, the neighborhood of SoHo has evolved into

a favorite of native Manhattanites and visitors alike.

Starting as an enclave of modern artists, it’s grown

into a destination for fine shopping, refined dining and

top-flight entertainment, while losing none of its artistic

sensibilities. The logical next step in SoHo’s evolution is now

complete, with the unveiling of 565 Broome SoHo. This cuttingedge

high-rise is designed to give residents a soothing escape from

the city, while placing them at the doorstep of all that SoHo offers.

Renderings courtesy of 565 Broome

equicapmag.com

SUMMER 2019 ISSUE

EQ.

47


DEVELOPMENT

DESIGNED BY INTERNATIONALLY ACCLAIMED

fi rm Renzo Piano Building Workshop (RPBW), 565 Broome is a

gleaming 30-story luxury condominium with interiors by Rena

Dumas Architecturer Interieure of Paris (RDAI). This building

represents the New York City debut of Renzo Piano, the Pritzker

Prize-winning architectural visionary Time Magazine has venerated

as one of the world’s top 100 most influential individuals.

HARMONY AND SERENITY

The 115 residences of 565 Broome range from studios to

four-bedroom homes, all bearing the graceful space- and

view-maximizing imprimatur of RDAI. The celebrated fi rm

incorporated ultra-transparent glass in the windows and neutral

tones as a means of conveying harmony, serenity and expansiveness.

The design is complemented by the luxe amenity

offerings, which extend over 17,000 square feet and deliver

an exclusive, calming retreat. Among the wellness amenities

are a fi tness center, a heated 55-foot indoor swimming pool,

changing rooms, steam rooms and sauna.

A meticulously groomed outdoor terrace, interior

landscaped lounge with soaring 92-foothigh

ceiling, live green wall, library and wet

bar and children’s playroom are among additional

amenities.

A private gated driveway provides entrance

to a covered porte-cochere. Even the

Renzo Piano-designed parking garage, situated

above street level and fully enclosed

in glass, serves up drama and excitement.

Visible from the street, the automated

parking system is on full, fascinating display,

its unique mechanisms smoothly

and gracefully lifting vehicles from street level to the higher

reaches of a private climate- and humidity-controlled garage.

Each space is not only expansive enough to accommodate SUVs,

but also features electric vehicle charging stations. Automated

technology enables owners to use a smartphone app to remotely

request their vehicles, with an average arrival time of a scant

210 seconds.

IMPECCABLE INTERIORS

Having entrusted the exterior design of 565 Broome to RPBW,

developer Bizzi & Partners Development turned to RDAI for

the interiors of the condominium structure. The result of this

collaboration between two powerful international architectural

forces is a tower that derives its beauty from a restrained assemblage

of basic elements including glass, stone and white oak. In

this sense, the building pays homage to the larger surrounding

neighborhood of SoHo, known for the beautiful simplicity of its

cast iron architectural elements.

The clean, uncomplicated aesthetic is matched by the approach

of the RPBW craftspeople called upon to build 565

Broome. The studio artisans are known for their dedication to

detail and their attention to a quality construction methodology.

Nowhere is the blend of design, materials and craft on more

stunning display than in the penthouses, which seamlessly

combine indoor and outdoor spaces to optimize their stunning

360-degree views of the Manhattan skyline and Hudson River.

It’s fitting that the artfully designed building is placed in

a nook of Manhattan known for art, and appropriate that a

structure this innovative would have an address in an enclave

respected for innovation. In every sense, 565 Broome SoHo is

a unique and fi tting addition to the neighborhood it will call

home, a community unlike any other. ■

Photo Credit: Festival della Scienza @flickr.com

CLOCKWISE:

THE NEW WHITNEY

MUSEUM NYC, NEW

PARLIAMENT HOUSE

OF MALTA, THE SHARD

IN LONDON, RENZO

PIANO

This image and above: Shutterstock.

Photo Credit: Jules Antonio @flickr.com

48

EQ. SUMMER 2019 ISSUE equicapmag.com


Sophisticated Products

and Services for

High-Net-Worth Investors

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Director/Investments

www.PerisSupper.com

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jonathan.peris@stifel.com

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New York, New York 10036

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M 516 445 6828

O 631 227 4926


YACHTING

THE ULTIMATE

EAST END AND

NEW ENGLAND

EXPERIENCE

Montauk Lighthouse Photo Credit: lohit v, creativecommons.org

WRITTEN BY Stefanie Tabacow, YachtLife

Summer is here, which for

many New Yorkers a nd

Bostonians means preparing

for their Hamptons

or Nantucket beach vacations.

Just mentioning

The Hamptons or Nantucket conjures

thoughts of Americana, pristine coastline,

lighthouses, and celebrities and

titans of industry rubbing shoulders at

summer time galas. But no matter how

many times you have been to these summer

retreats, you haven’t truly experienced

this area until you have explored it

by water on your own private yacht.

Yachting in New England and

throughout the Hamptons is unlike anywhere

else in the world: golden sand

beaches and lighthouses; upscale boutiques

in picture perfect towns; and

stunning mansions on imposing cliffs.

Sailing through this region, you will

soon see that this coastline has more to

offer than purely natural beauty — it

possesses a wealth of history and culture

dating back to the American colonial

past and set against some of the most expensive

and desirable real estate in the

United States.

The following

is a sample

7-day

itinerary

bringing you

and your

guests to some

of the most

well-known

sites that

you’ll be sure

to enjoy.

DAY 1

SAG HARBOR

Embark on your yacht in Sag Harbor and

take a short cruise to Shelter Island where

a tender can rendezvous with your yacht

to bring you onshore for lunch at Sunset

Beach. This East End staple feels more

like St. Tropez than Long Island with it’s

yellow and white parasols and Mediterannean

vibe. After a relaxing post-lunch

swim or a jet ski ride, take a sunset cruise

back to Sag Harbor where you can dine

aboard your yacht or head into town and

have farm-to-table fare at Wölffer Kitchen.

DAY 2

MONTAUK

After breakfast onboard, head to the North

Fork of Long Island, home to dozens of

vineyards and charming small towns.

Make sure to pay a visit to the lavender

fields at Lavender by the Bay before heading

into town for lunch at the Frisky Oyster

in Greenport. After embarking on your

yacht, head to the hip surf town of Montauk.

Cruise to the famous Montauk Lighthouse

and then drop anchor at Navy Beach

where you can take in the breathtaking

sunset before heading back to Montauk

for dinner at the Crow’s Nest where you’ll

have some of the freshest local food with a

lake front view.

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YACHTING

DAY 3

BLOCK ISLAND

Known for its protected beaches, Block Island was named by the Nature

Conservancy as one of the sites in the list of “last great places” in the

Western Hemisphere. Visit the Mohegan Bluffs, and take the staircase to the

bottom of the clay cliffs, and make sure to try a bowl of New England clam

chowder at the National Hotel.

DAY 4

NANTUCKET

From Block Island take a morning cruise to Nantucket, made famous by the

Kennedy family for their family compound in Hyannis Port. Originally a whaling

port, Nantucket has been named a National Historic District and little

has changed since the 17th century with its old fashioned lamps still lining

the streets. Nantucket is better known for its pristine dune-backed beaches,

cobblestone streets and is famous for its 4th of July fireworks. Spend the

day exploring this unique New England island.

DAY 5

MARTHA’S

VINEYARD

From Nantucket, take a short

cruise to the storied island of

Martha’s Vineyard, a summertime

favorite of sitting US

presidents. Martha’s Vineyard

boasts the oldest working carousel

in the country, and if traveling with children,

you might consider taking a tour of the Farm Institute, where you’ll

see livestock and can explore lush vegetable and flower gardens. And no trip

to the Vineyard is complete without some Murdick’s fudge. Have dinner in

town before heading back to your yacht for a well-deserved night’s rest.

DAY 6

NEWPORT

Wake up to breakfast aboard while you take a leisurely cruise to the yachting

capital of the US — Newport, Rhode Island. Home to the prestigious New

York Yacht Club and some of the nation’s most impressive and historic mansions,

this quintessential New England town is also known for its museums

and art and jazz festivals. In Newport you will be able to stroll down the famous

Cliff Walk and pay a visit to The Breakers, the former summer cottage

of the Vanderbilt family. If admiring the mansions is not enough, you will also

have the opportunity to dine at the historic Castle Inn, which was built in 1875.

DAY 7

SAG HARBOR

After a breakfast in Newport town, take a restful cruise back to the Hamptons

with lunch onboard. This morning cruise will get you back into Sag

Harbor just in time for a late lunch in town followed by a lively dinner at Le

Bilboquet restaurant overlooking the marina. ■

This one-week charter brings you to some of the most iconic New England towns

on a journey covering just over 270 nautical miles. It’s truly an experience not

to be missed and will make for lifelong memories for you and your guests. Enjoy

this historic part of the world as it was meant to be seen — by the water.

Essential

Stops

HOTELS

Gurney’s Montauk Resort (Montauk)

Is situated on Montauk’s most pristine

stretch of oceanfront real estate, this is

a Hamptons icon and the only year-round

resort in Montauk.

American Hotel (Sag Harbor) Was built

in 1846 at the height of the Whaling era.

It is an elegant and professionally run

establishment with an inimitable edge and

character.

National Hotel (Block Island) Is the

flagship victorian hotel on Block Island

located in the center of downtown in Old

Harbor.

Gurney’s Newport Resort (Newport)

Is situated on Goat Island and surrounded

by Narragansett Bay. Offering the

seclusion of a private island yet close to

downtown Newport.

RESTAURANTS

Sunset Beach (Shelter Island) With a

French Riviera-meets-coastal Italian menu

this is one of the summer hotspots to enjoy

an afternoon this summer.

The Crow’s Nest (Montauk) From fresh

whipped ricotta to blue crab claw tagliatelle,

this rustic mediterranean restaurant

is well worth a visit for the food and

view of Montauk Harbour.

Cru (Nantucket) With an envious waterfront

location in the heart of Nantucket

harbor, Cru offers the ideal backdrop any

time of day; enjoy a glass of champagne,

indulge in caviar and oysters or sip on a

glass of rosé at sunset.

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

modern restaurant located in a restored

historic whaling captain’s house with an

inventive, fresh, and seasonally-driven

menu.

E V E N T S

4 th of July (Sag Harbor) The oldest

continuous 4 th of July celebration in the

country. It is certainly the place to be and

see the majestic firework shows.

Newport Jazz Festival (Newport) One

of the must-attend jazz festivals in the

country held every summer in Newport,

RI. This year, it will happen on August 2 nd

till August 4 th .

Hamptons Polo (Bridgehampton) The

most exclusive polo event in the Hamptons

with only 500 tickets available will be held

on June 29 th and July 6 th .

Nantucket Film Festival (Nantucket)

Packed with celebrities, the film festival

focuses on screenwriting and is held June

19 th to June 24 th .

equicapmag.com

SUMMER 2019 ISSUE

EQ.

53


YACHTING

VQ58 T-Top

VANQUISH YACHT’S

EFFORTLESS

COMFORT

WRITTEN BY Daniel Hilpert

With ultimate comfort, ideally suited for longer trips with larger

groups, the brand new Vanquish VQ 58 has all the ingredients

of a true driver’s boat. Comfort is nothing without space—

the foredeck, aft deck and various shaded areas provide luxury

seating for 23 passengers on comfortable, newly designed sofas and sunbeds.

The interior of the VQ58 is highly customizable.

Clients can choose between two locations for a

garage storing watersport toys or the new Vanqraft

VQ11 water scooter. The Vanquish’ builders

designed a flexible 58-foot hull with three layouts

(open, wheelhouse and T-top).

Weighing only 19 tons, the VQ58 has excellent

maneuverability and acceleration with top speeds

of over 50 knots. An hydraulic sub marine anchor,

designed to fit within the lines of the underwater

hull, ultimately conceals the chain and winch while

at anchor.

The yacht features twin 600 hp Cummins

engines as standard and can optionally be equipped

with twin Volvo IPS950 engines. Both systems are

delivered with joystick controls. Buyers looking for

more turn speed can opt for two twin MAN V8 1200

hp engines with surface drive propulsion. ■

Renderings courtesy of Guido de Groot

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YACHTING

THE VANQUISH VQ58

HARDTOP IS THE FIRST

MODEL IN THE NEW VQ58

SERIES. BUILT FOR AN

OWNER WHO WISHED TO

BLEND KEYNOTE ELEMENTS

FROM THREE OF OUR

DRIVER’S BOATS.

VQ58 Open

VQ58 Wheelhouse

SPECS

LENGTH OVERALL

17.25 m / 56.6 ft

BEAM

5.05 m / 16,5 ft

DRAUGHT

0.9 m / 2.95 ft

(depending on

engine choice)

DIESEL ENGINES

2 x 600 hp

Cummings Zeus

Pods, 2 x Volvo IPS

950 or 2 x 1200 hp

MAN with surface

drives

FUEL CAPACITY

1500 liters / 400

US Gallons

FRESH WATER

CAPACITY

400 liters / 105 US

Gallons

WASTE WATER

SYSTEM

70 liters / 19 US

Gallons

VQ58 T-Top

SPEED

50+ knots

(depending on

engine choice)

equicapmag.com

SUMMER 2019 ISSUE

EQ.

55


YACHTING

YACHT

ETIQUETTE

WRITTEN BY Stefanie Tabacow, YachtLife

Whether it’s your first

time chartering a

yacht, you’re a yacht

aficionado, or a guest

aboard someone else’s

yacht — we all can

agree that good etiquette

is appreciated by

everyone, and will make

for a better yachting

experience for all.

YachtLife.com

1.

Preparing for your charter

WHAT TO BRING

• You’re on a yacht, so don’t forget your swimsuit and sunglasses. Sun

dresses and sarongs are advisable for women, while lightweight pants,

shirts and sweaters are great for all passengers.

• Pack light-soled shoes, flip-flops or just go barefoot — so much time

is spent in the water or on the sand.

• Nannies: don’t assume that the crew will be your nanny. Bring childcare

with you if you would like have someone else look after your children.

WHAT NOT TO BRING

• There is sunscreen onboard, but if you like a particular brand, bring it.

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

teak decks.

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

yacht decks.

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

• Glassware and flatware are also provided onboard.

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EQ. SUMMER 2019 ISSUE equicapmag.com


YACHTING

2.

Collaborating with

captain and crew

• The primary responsibility of captain and crew is safety.

Once aboard, there will be a briefing about lifejackets, liferafts,

yacht layout, crew introductions and other specific

safety information.

• Heed your captain’s advice on the itinerary, transit times,

and places to visit — there’s no point in trying to travel

too far and not enjoying the journey.

• Let your captain know if you are inviting guests so he may

order extra provisions and avoid shortage of food or drink.

• Avoid entering the crew quarters without explicit verbal

permission.

• The galley (kitchen) is considered crew workspace — ask

the chef before entering.

3. General Rules

• Most yachts do not allow smoking inside cabins — there

should be a designated smoking area on an outside deck if

you fancy an after-dinner cigar.

• If you find a yacht that allows you to bring your pet, make

sure that you have all the proper documentation (passport,

vaccinations, micro-chips).

• Red wine is usually not allowed onboard as it not only

stains but it’s also difficult to store on most yachts.

PROVISIONING THE YACHT

• Day charters: generally, yachts are stocked with water,

soft drinks and ice. You can bring your own food and

drinks; have your yacht broker arrange for delivery; or

hire a private chef.

TERM CHARTERS

• Before embarkation, work with your broker so that the

crew has a detailed meal preferences and provisioning

sheet. The crew will stock the yacht with food and

drinks, and the chef will be prepared to make desired

meals for all those aboard.

TERM (MULTI-DAY) CHARTER

• The Master Cabin (largest guest room) goes to the

principle charterer — the one who is inking the contract

and footing the brunt of the bill. If you are splitting

the cost equally, sort out the rooms in advance.

4.

Tipping

• It’s customary to tip your crew for their service on the last

day of your charter; place it in an envelope and hand it

directly to your captain. As a general rule, a 15% gratuity

is expected for a job well done.

5. Laws

• In most major yachting destinations, unless the vessel is a

Coast Guard Inspected Vessel, it cannot carry more than

12 passengers during a paid yacht charter regardless of

the size of the vessel.

• If you’re traveling in international waters, you’ll need

passports with visas and another form of government

issued ID.

• Some countries may require special vaccinations. Please

check with your broker as they will confirm for you.

equicapmag.com

SUMMER 2019 ISSUE

EQ.

57


LAW

432 PARK

AVENUE

NEW YORK STATE

TRANSFER AND

MANSION TAXES

How will these incremental tax increases affect the

residential real estate market?

WRITTEN BY Harvey I. Krasner, Warshaw Burstein, LLP

THE NEW YORK STATE SENATE

and Assembly, on April 1, 2019, enacted

changes to Section 1402 of the State Tax

Law that increase the New York State

Transfer Tax and Mansion Tax on transfers

of real property (including apartment

cooperative units) located within

the fi ve boroughs of New York City and

other cities with a population of one

million or more.

Effectively, this is a way for the state

legislature to tax only New York City,

since there are no other cities in New

York State with a population that exceeds

one million. The new increases are

applicable to closings that occur on or

after July 1, 2019, although an exception

exists for transactions entered into prior

to April 1, 2019 but that close on or after

July 1, 2019. The Mansion Tax is in addition

to the New York State Transfer Tax.

THE ORIGINAL MANSION TAX

A brief history of the Mansion Tax is

in order. On October 19, 1987—a day

known as “Black Monday”—the stock

market crashed. The decline amounted

to over 22% of the Dow Jones Industrial

Average. An economic crisis ensued and

it took two years for stocks to top the

levels on the last trading session before

Black Monday. The real estate market

similarly was adversely affected by the

stock market crash and was in dramatic

recession for about seven years following

the crash.

The economic crash resulted in

a dramatic decline both in real estate

prices and, more importantly, in the

number of transactions in both residential

and commercial property. Consequently,

New York State revenues also

declined dramatically, as its revenues

are strongly bolstered by taxes paid at

the time of a sale or transfer of real estate.

It is in this context that in 1989, the

original Mansion Tax was enacted to

raise funds for the State to replace the

“lost” tax revenue.

The original Mansion Tax was a

straight one percent tax on the sale price

of one-, two- and three-family homes

as well as condominiums and cooperative

apartments, where the sale price

commons.wikimedia.org.

was $1 million or more (hence the term

“Mansion Tax”). The tax was paid by the

purchaser of the property. In 1989, a sale

price of $1 million for a residence was the

exception, and therefore the residence

was considered a “mansion.” The tax was

not pegged to an index, and $1,000,000

in 1989 had the same effective purchasing

power of $2,000,000 today.

THE AMENDED TRANSFER AND

MANSION TAXES

Today, in New York City, a large percentage

of residential transactions exceed

$1 million, and the tax applies to

many homes that would not be considered

mansions. While the original tax

was fixed at one percent for all transfers

of residential property over $1 million,

the newly enacted amendment to

the Mansion Tax is graduated, and as

the chart below indicates, the tax rate

increases as the sale price increases.

This reflects the attitude that people

purchasing—and therefore able to afford—

a more expensive home should

pay a higher percentage in taxes.

58

EQ. SUMMER 2019 ISSUE equicapmag.com


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LAW

The purchaser is still required to pay

the Mansion Tax, but the newly amended

law makes the seller ultimately responsible

for paying the Mansion Tax

in the event a purchaser fails to pay the

tax,—or if a purchaser is exempt from

paying the tax. If a seller is required to

pay the Mansion Tax due to the purchaser’s

failure to pay (as opposed to

purchaser’s exemption from paying), the

tax will be a joint and several liability of

the seller and the purchaser.

In addition to the rate increases in the

Mansion Tax, which apply only to residential

real property sales in New York

City (or cities of one million or more),

New York State has increased the rates

of its Real Property Transfer Tax (applicable

to all New York State real property

sales, including residential) and typically

is paid by the seller.

A CHILLING EFFECT

What is the effect of these increases in incremental

taxes on the overall residential

real estate market in New York City? For

the past two years there has been a leveling

off of prices after skyrocketing price

increases for the years following the 2008

financial crisis. The year 2018 showed

prices had declined. In addition to the

softening of the residential market due to

market forces, supply-demand ratios, etc.,

the Federal Tax Reform Act of 2017 was

particularly onerous on owners of real estate.

By limiting the combined New York

State and New York City income tax and

real estate tax deductions to a maximum

of $10 thousand, it has had an additional

chilling effect on real estate transactions.

The perception that a move to New York

City will result in a higher tax bill than in

other parts of the country has affected an

untold number of transactions.

In recent years, there has been an increase

in both population and real estate

transactions that was due, in part, to

older empty nesters choosing to sell the

family home in the suburbs and retire to

the city where condo and co-op living

allowed them to downsize and eliminate

the headaches that go with maintaining

a house and property. The elimination

of most of the income tax and real estate

tax deduction likely will make some

baby boomers reconsider the choice of

cities (specifically New York City) as

their retirement destination.

In addition to the elimination of

these tax deductions, the increase in the

Mansion and Transfer Taxes and the cumulative

potential psychological effect

8 SPRUCE

NEW applicable New York State Mansion Tax rates

Purchase Price

Pre-7/1/19

NYS Mansion Tax Rate

New NYS Mansion Tax Rate

Under $1 million not applicable not applicable

$1 million–$1,999,999 1.00% 1.00%

$2 million–$2,999,999 1.00% 1.25%

$3 million–$4,999,999 1.00% 1.50%

$5 million–$9,999,999 1.00% 2.25%

$10 million–$14,999,999 1.00% 3.25%

$15 million–$19,999,999 1.00% 3.50%

$20 million–$24,999,999 1.00% 3.75%

$25 million and up 1.00% 3.90%

of this increase may accelerate a trend

to avoid New York City. When statistics

for calendar year 2019 are available, it

would not be surprising to see a decline

Purchase Price

NEW applicable New York State Transfer Tax rates

Pre-7/1/19 NYS

Transfer Tax Rate

— Residential

New NYS

Transfer

Tax Rate —

Residential

Pre-7/1/19 NYS

Transfer Tax Rate

— Commercial

6sqft.com

in both transactions and certain population

groups moving to New York City. ■

Harvey I. Krasner is a partner at Warshaw Burstein,

LLP in New York

New NYS

Transfer

Tax Rate —

Commercial

Under $2 million 0.40% 0.40% 0.40% 0.40%

$2M–$2,999,999 0.40% 0.40% 0.40% 0.65%

Over $3 million 0.40% 0.65% 0.40% 0.65%

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EQ. SUMMER 2019 ISSUE equicapmag.com


LAW

TRANSFERRING

DEVELOPMENT

RIGHTS BY

ZONING LOT

MERGER

What’s a Wedding

Without Parties?!

WRITTEN BY

Michael Smith

with contributions by

Alexander Berger

(Herrick, Feinstein LLP)

Photo Credit: Miguel de Guzmán

160 EAST 22ND STREET, CANTILEVERED OVER THE ADJACENT

2-STORY TOWNHOUSE

THE MOST SUCCESSFUL marriages

are combinations that benefit both

individuals. So it goes in a zoning lot

merger, which is like a marriage between

New York City properties. In a zoning

lot merger, owners combine adjacent lots

into a shared zoning lot, and pool together

their development rights. For example,

two owners with lots that each have

100,000 square-feet of development rights

could agree to a zoning lot merger that

gives them 200,000 square-feet of collective

rights. They could then agree to a

development rights transfer that sends

50,000 square-feet from one site to another,

leaving one with 150,000 square-feet

of development potential, and the other

with 50,000 square-feet. These transfers

are increasingly common because owners

with untapped development rights profit,

and the developers who purchase them

can construct larger buildings.

In consummating this marriage,

owners typically enter into a prenuptial

agreement of sorts, called a zoning

lot development agreement (ZLDA).

A ZLDA (pronounced Zelda) is supremely

important because it dictates how

the development rights will be split up,

and without one, unused square footage

would be free for the taking by any owner.

Frequently the subject of misconception:

while recommended, technically

you do not need a ZLDA to merge zoning

lots (rather, the marriage is actually

consummated separate from the ZLDA,

in a marriage certifi cate of sorts called

a declaration of zoning lot restrictions).

Owners play the lead role in ZLDAs,

but the marriage can’t go on without all

of the parties (in interest)! That’s because

under New York City’s byzantine,

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Composite

C M Y CM MY CY CMY K

LAW

1,300-page Zoning Resolution, zoning lot mergers require

waivers from all “parties in interest,” including mortgagees

of the sending and receiving sites.

Lenders are the classic example of parties in interest, and

they often play a role because mortgage collateral typically

includes development rights. To consummate a zoning lot

merger, a borrower typically requests a waiver of the lender’s

“party in interest” status under the Zoning Resolution,

the lender’s consent to the borrower’s ZLDA, and a subordination

of the mortgage lien to the ZLDA. When lenders

consider these borrower requests, it’s important to perform

the due diligence necessary to ensure their rights and collateral

are protected.

Moreover, beyond lenders, a party in interest should

always conduct an independent zoning analysis before consenting

to a zoning lot merger. After a fee title closing, purchasers

walk away with physical property that can be seen

and touched (land, building, keys, etc.). Development rights

however, are invisible. Until a developer pulls a building

permit to use the rights (which may be long after money

has changed hands), New York City provides no confi rmation

that the transaction was correctly completed.

A specific item to focus on is zoning compliance.

Let’s say a property owner enters into a zoning lot merger

with a lot that contains an illegal hotel. Building violations

occur on a zoning lot-by-zoning lot basis, so in that scenario,

the hotel violation becomes the subject property

owner’s problem as well. To avoid such complications,

parties in interest should conduct a zoning compliance

analysis of every property that will be joining the zoning

lot, and include ZLDA terms that limit further zoning lot

expansion without its consent. In addition, parties in interest

should ensure that the ZLDA provides for the means to

fix future problems, including through self-help remedies

and zoning lot divorces.

ZLDAs also typically have multiple provisions devoted to

a property owner’s ability to rebuild damaged improvements

after a casualty, in part because New York City can downzone

areas. If a downzoning occurs, and an owner with no

remaining development rights suffers a catastrophic event,

such as a building collapse, they would be unable to rebuild a

true replacement building - they would have to build smaller!

ZLDAs can also include easements, purchase options,

rights of fi rst refusal and fi rst offer, and unusual provisions.

Among the most common provisions are light and air easements,

which restrict the height of future buildings, and

provisions that give a developer the right to cantilever a

new building over its neighbor’s airspace. Parties entering

into a ZLDA may also be executing an unrecorded construction

license agreement (CLA) that requires temporary

scaffolding, access to the neighboring property or permanent

underpinning beneath it. Parties in interest should pay

close attention to these ZLDA provisions, and ensure that

CLAs protect the stability of buildings on the property in

which they have an interest.

Zoning lot mergers are increasingly common, and as

major development expands into the boroughs, we should

see more of them. ■

go online to equicapmag.com — For a recent article by this author regarding obtaining

underpinning rights from neighboring properties — “Like a Good Neighbor,

RPAPL § 881 Is There: Developer Receives Underpinning Relief through

Court-Ordered Access License”.

DRINK RESPONSIBLY

equicapmag.com

SUMMER 2019 ISSUE

EQ.

63


URBAN PLANNING

TRANSIT ORIENTED

DEVELOPMENT

Financing the Infrastructure

that Supports It

The solution is to create a direct and immediate

correlation between the catalyst of the increased

property values and the actual value there is to capture.”

WRITTEN BY Michael Santora, Principal, Scott Brownrigg + Crown

TRANSIT ORIENTED DEVELOP-

MENTS (TODS) are not a new concept;

however, they have recently been gaining

popularity as a method for creating

sustainable development during rapid

urbanization and population growth.

TODs seek to maximize the business,

residential and leisure space within close

proximity to one or many modes of public

transportation. The access to new or

improved transportation provides the

convenient connectivity to the rest of the

city that can regenerate neighborhoods

and increases property values—but are

the transportation systems seeing their

fair share of the income in comparison

to what they invest? In New York City at

least, it would seem not.

Waiting for future property taxes to

generate revenue and make its way back

to the transit system has proven to be an

insufficient system. This city requires a

state-of-the art transit system that covers

the entire city and maintains a low fare for

everyone to afford.

When the transit system goes through

an expansion, or existing infrastructure

is improved, it causes the property values

to immediately rise. Conversely, the additional

operation and maintenance costs

associated with the project, as well as the

debt for the capital improvements, create

more of a financial burden on a system

that already loses money.

The solution is to create a direct and

immediate correlation between the catalyst

of the increased property values and

the actual value there is to capture. Here

is how that can be achieved:

• Up-zone land occupied by transit systems,

stations, yards, rights of way and

other facilities. Then amend zoning regulations

to permit and promote development

above appropriate infrastructure

and transfer development rights to

surrounding lots where building directly

above is not appropriate.

• Allow the transit operator to finance the

proposed expansion or improvement by

pre-selling development rights to surrounding

properties at future (post-improvement)

market values. This will

also ensure that new private developments

are constructed simultaneously

with the infrastructure, so the urban

fabric develops cohesively.

• Allow the transit operator to share in

profits of developments constructed

over the property in perpetuity by partnering

with private developers through

ground lease structures. This will ensure

funds for the ongoing operation

and maintenance of the project.

The value of connecting transit

infrastructure improvements to private

land development is two-fold; the

public captures the monetary value of

private development without having

to pay construction costs or take on

the building risks, and infrastructure

projects will be implemented faster

because they will not have to compete in

a political form for public funds.

A program like this will contour

New York City’s urban-development

approach by creating new residential

neighborhoods that are fully integrated

within the transit infrastructure. The

stations will be connected by a network

of interior passageways lined with amenities,

as well as with outdoor parks and

plazas. In addition to these commuter

communities now being efficiently

linked to the central business districts

through mass transit, some of the development

land, such as train yards and bus

depots, can be expanded under the same

model to create industrial and manufacturing

spaces that generate local working

class jobs and facilitate last mile distribution

centers that, in the future, may

also permit public transit infrastructure

to dually act as a freight network during

off-peak times. Additionally, these developments

can incorporate affordable

housing and the city can tie additional

zoning bonus tiers to achieving difference

thresholds of affordable housing

and community facilities.

In conclusion, our current public

transportation model is unsustainable

and programs such as the one outlined

here should be implemented to ensure

these systems are financially independent

and self-reliant. The dense populations

and high property values of New

York City will allow this program to produce

substantial funding while promoting

sustainable urban expansion. ■

Michael Santora is Founder & Principal of Crown

Architecture and Consulting, D.P.C, which has recently

partnered with Top 100 Global Architecture fi rm

Scott Brownrigg to form Scott Brownrigg + Crown.

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

64

EQ. SUMMER 2019 ISSUE equicapmag.com


5

0

0

-

M

E

T

A

V

E

-

B

R

O

O

K

L

Y

N

Spectacular water views

no longer require a yacht.

The city’s sexiest hotel isn’t in Manhattan.

Taking reservations at indigowilliamsburg.com


INTERVIEW

that price

spike is where

traders like

me sell the

positions

we just

accumulated.”

—Shah Gilani

LUNCH WITH

SHAH GILANI

EQ’s Daniel Hilpert recently sat down with Shah Gilani, a retired hedge fund manager, Fox business

news regular and editor of WallStreetInsightsandIndictments.com, for lunch at DaDong and to

discuss real estate and the economy.

DH: Shah, it’s always good catching up with you,

especially having lunch at DaDong, one of our

favorite places. I took the liberty of ordering the

Champagne Glazed Vine Tomatoes and Chinese

Cabbage Two Ways [Mustard & Vinegar]. The

Chinese Cabbage is one of the best in the City, it’s a

“must try.”

SG: I look forward to it; this is your place Daniel, I have

to thank you for introducing me to it, as it’s now one of

my favorites too.

DH: I’m seeing a lot of people here. Is this a

reflection of our economy, or do you believe the

U.S. economy is slowing—and are we facing the

prospect of any kind of recession?

SG: I don’t see the economy backsliding into recession,

at all. The GDP growth trend since 2015 has been

solid, if not great. The low point of 2015 was Q4, when

GDP growth slowed to less than 0.5%. In 2016, it rose

to about 1.8% for the year. In 2017 we saw it shoot up

to 2.65%. Last year it jumped to 3%. That’s a very positive

trend. There’s no reason to expect a turnaround.

Some slowing wouldn’t be a surprise or a worry,

probably because of our dust-up with China over

trade, and also that we’re now facing down Mexico on

trade over President Trump’s immigration policies.

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

DH: 2019 Q1 GDP came out at 3.2% annualized and

still the equity markets backtracked. Some say

the slip in equities was all China trade-war fears.

From what I’ve read, it’s the result of markets

seeing unexpectedly strong GDP growth in Q1 and

thinking that it’s as good as it gets and that we’ve

borrowed too much from future consumption and

production. What are your thoughts?

SG: I think you’re right; some investors have been

discounting the solid GDP growth numbers, which

by the way for Q1 2019 just edged down to 3.1% on a

second revision. And, yes, I think investors hedged

their equity bets a little this Spring on the heels of

a slow Q4 2018, at 2.2% growth, then the Q1 jump,

which could be looked at as borrowing from future

quarters’ growth. But, that’s superficial, in the sense

that models don’t trade much based on that kind of

discounting.

DH: Why not? If investors see the economy jump

and then believe that jump, which came as you say

on the heels of an unexpected slowdown in Q4,

might be unsustainable, especially with our trade

war with China heating up, why wouldn’t they discount

that growth and do some selling or hedging?

SG: Because the Federal Reserve watches the markets,

sees stocks trade lower, worries about what

66

EQ. SUMMER 2019 ISSUE equicapmag.com


INTERVIEW

that will do to investor sentiment and

consumer confidence, and consistently

rushes in to apply its so-called PUT. And

these days almost everyone’s trading

models and their econometric models

apply that Fed PUT in their calculations.

So, the discounting gets discounted by

the assumption of Fed easing.

DH: And that’s just what we got, wasn’t

it? The Fed just saw equity markets

slip, not even 10%, and they came

rushing in with rate cut rhetoric.

That’s the PUT you’re

talking about.

SG: Precisely. Ah, this looks

like our food, what did you

order for our main course?

DH: That’s the Steamed King

Crab, the Truffle Braised

Whole Abalone, and lastly

the Prime Chili Diced Short

Rib. So tell me, what’s just

driven interest rates down

so quickly and why would

the Fed come in after rates

have been hammered lower

by strong buying, especially

of the Treasury 10-year, and

talk about cutting?

SG: First, on the rapid rise in

prices of bonds and the slide

in rates, I think a lot of that

is institutional trading. Big

Treasury buyers piled into

bonds to make a profit on price

appreciation, and it became a

momentum trade. At the same

time, and this is how these big

boys play, knocking down rates

makes it look like investors are

buying bonds as a safe haven

because the trade war and a

slowing economy is going to hit

stocks, while bonds will rally.

That’s well played. As rates

came down the financial news

media started talking about recession

fears being reflected in

the bond market, and low and

behold, the Fed stepped in with calming

words. And guess what? That push

lower in rates, that price spike, is where

traders like me sell the positions we just

accumulated.

But there’s more. Sadly, in my

opinion, it’s because we don’t have

“free markets” anymore. The Fed is the

economy’s central planner, and that’s

what we’re seeing increasingly. The

recent rhetoric by James Bullard, the St.

Louis Fed Bank president, who just said

he sees rate cuts potentially ahead, and

Fed Chair Jerome Powell talking about

acting appropriately, meaning cutting,

if the trade wars get out of hand, in the

Fed’s opinion that is, that’s their way of

signaling they’re at the ready to backstop

markets. Not the economy mind

you, markets. It’s a real problem, in the

long run, because we don’t know how

markets will ever “clear” if they’re not

allowed to. That means bubbles.

MULTI-FLAVORED

WHITE CHOCOLATE

SHELLS

DH: Glad you brought up the Fed and

the prospect of rate cuts. Interest

rates drive our business. How’s that a

problem for our business or commercial

real estate in general?

SG: It’s not a problem, it’s great for you.

In fact, you should be looking at a lot

more business. I’m sure your transactions

will increase markedly now that

rates have just been trounced, as long

as potential clients have not recently

Photo courtesy of DaDong

refinanced or over-leveraged themselves.

I’m sure you also watch the yield

curve. In my opinion, the flattening of the

yield curve is problematic for the same

reason, a flat yield curve doesn’t allow

for proper risk pricing. What’s coming

next?

DH: For our dessert I ordered

Multi-Flavored White Chocolate

Shells and Crispy Chocolate Rice

Pudding. Speaking of yield curves, in

my business it’s mostly about

banks, though hedge funds

and insurance companies are

increasingly go-to providers

of mortgage funds. How do

you see the banks these days,

especially given your hard

criticism, I’d say bashing of

them, during the financial

crisis and during the Great

Recession.

SG: The big banks are in much

better shape today than at any

time since the crisis, thank

goodness. But the flat yield

curve is cutting into their NIM

(net interest margin) and trading

is too up and down to be a

consistent, regular contributor

to earnings. They’re in good

shape, but I believe they’re still

over-leveraged. It’s the smaller

banks that I’d be worried about.

They have much different funding

and liquidity profiles.

DH: True. Lastly, where do

you see equities going?

SG: I see them going higher

as long as the Fed PUTs are

in place. If the trade war with

China gets resolved, equities

will rally in relief, maybe 10%,

maybe 20% if the economy

looks like it’s still growing.

On the other hand, if we don’t

get a resolution to the China

trade tremors and at the same

time tech stocks get the wind

knocked out of them by the Justice

Department and the FTC on anticompetitive

ground shaking, equity markets

could drop a good amount lower, as in

maybe 10% to 20% lower.

DH: Then I guess we’ll just have to

have you back soon to tell us what’s

next. Thanks, Shah.

SG: Until next time, Daniel, thank you

for a delightful lunch. ■

equicapmag.com

SUMMER 2019 ISSUE

EQ.

67


Coffee WITH DAVID STEINGARD OF

LAUGHING MAN COFFEE COMPANY

LAUGHING MAN COFFEE AT 184 DUANE STREET is a neighborhood hangout where I frequently meet with other

Tribeca real estate execs to get an inside scoop and negotiate deals. Founded in 2011 by Hugh Jackman and David Steingard, the

company supports coffee farming communities by investing in programs that clear the way to health, growth and success for

coffee farmers and their families. Recently, I sat down with David Steingard to sip double shot macchiatos and talk about all

things Tribeca, entrepreneurship and coffee. — Daniel Hilpert

DEAL MAKING

Q&A

Daniel Hilpert: You were in law, and

now you run Laughing Man. Tell me

a little bit about your background

and what made you embark in this

direction.

David Steingard: I loved being a prosecutor

at the Brooklyn District Attorney’s

office, both the work and the friends I

made. As someone with an entrepreneurial

spirit, I get a little antsy, especially

when I am in an environment that

does not reward or foster ingenuity and

initiative. I started to look for the next

thing. I knew of the vacant space where

the cafe is now and thought about getting

back into coffee; my family had been in

the business when I was growing up. It

was around the time specialty coffee,

micro-climates and attention to the

farmers was starting to become more

important. It was a great mix of hospitality

and creativity that I was looking for.

At the same time, Hugh had come back

from an Ethiopian coffee project he was

supporting and he wanted to get more

involved. We pitched our idea, he loved it,

and we partnered up. Like Paul Newman’s

organizations, Hugh gives 100% of

his profits to the Laughing Man Foundation

and I donate 50% of mine. Our

contributions support various projects,

the latest being 100 new home and home

improvement projects in Colombia for

coffee farmers, and 45 college scholarships

for children of coffee farmers.

What has it been like having Hugh as a

partner? What is he like to work with?

He has a genuine love and care for

Laughing Man and what it can do for others.

He is extremely smart and well-read

in world socio-economic issues, and is a

self-proclaimed coffee snob but as down

to earth as they come. Laughing Man is

not a celebrity endorsement after-thefact;

he is fully engaged in its growth and

brings a voice of compassion, authentic-

ity and joy through which he can tell the

story. His ability to give full attention to

anyone or anything given the demands

on him is inspiring.

HUGH JACKMAN

ENJOYING A CUP OF

LAUGHING MAN COFFEE

Photo Credit: Laughing Man Coffee

What is Laughing Man’s mission? What

is its role in the community?

Our mission is twofold. Locally, it’s to

change the customer’s world through

hospitality, what we call ALL BE HAPPY

moments. Our motto, ALL BE HAPPY,

comes from a sanskrit prayer “may all be

happy, may all be free of disease, may all

have wellbeing and none suffer the misery

of any kind.” We take ALL BE HAPPY

and ask how we can create a moment for

someone where they feel connected and

a little more inspired as they go through

their day. Great hospitality can create a

value reset, and for a moment a customer

can remember the real things they

cherish. We know our regulars’ drinks

before they order. We have a group of

PS 234 parents who show up at 8:30am

after dropping off their kids. One of them,

Claudia Saez-Fromm, a five-year regular,

gets a large plain black coffee, while a

friend of hers gets a cortado. They stay

and unwind before happily leaving for

their SoulCycle and yoga classes. Local

professionals, like Claudia, who’s also a

broker at Corcoran, linger to set up meetings

or build relationships. So locally, it’s

a very simple principle, but hard to pull

off for as long as we have and that speaks

to our incredible staff.

Globally, we want to be a company that

leaves the world a little better than we

found it. We want to nourish and support

the very things that we draw from, the

farmers and their farms. To us, coffee is

a family business, in the cafe çwe treat

staff and customers as family. The foundation

is focused on projects that move

the whole family and community forward.

You’re adjacent to Duane Park, how did

you get these street seats approved by

the City?

The street seats are part of a DOT administered

program. Under their watch

and authorization, we were allowed to

provide a public seating area for the

community. We paid to have it built and

we maintain it. It has really brought the

community together and fosters the kind

of connection we think is valuable to a

happy life.

What is Laughing Man’s next move?

We have had a location at Battery Park

for about six years and it’s going great.

It has a beautiful view of the water. We’re

soon expanding this space into a larger

format cafe, offering the community the

same great vibe and community feeling

with a little more of a food offering, and

additional space to sit and shelter from

the heat and cold. Hopefully, we will open

by Labor Day. ■

68

EQ. SUMMER 2019 ISSUE equicapmag.com


56 LEONARD, 6 WEST

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

25 MURRAY STREET, 3H

Price: $2,800,000 | Bed/Bath: 2/2 | Web ID: 5774277

77 BLEECKER, 306/307

Price: $2,800,000 | Bed/Bath: 3/3 | Web ID: 5752831

75 BANK STREET, 1CDE

Price: $2,450,000 | Bed/Bath: 3/2 | Web ID 5679329

885 PARK AVENUE, 1A

Price: $1,250,000 | Medical Office | Web ID: 5702386

Mark David Fromm

Licensed Associate RE Broker

Licensed As Mark David Fromm

o 212.444.7965 | m 917.331.4400

markdavid.fromm@corcoran.com

Claudia Saez-Fromm

Licensed RE Salesperson

Licensed As Claudia M Saez

o 212.444.7964 | m 212.203.1798

claudia.saezfromm@corcoran.com

Real estate agents affi liated with The Corcoran Group are independent contractors and are not employees of The Corcoran Group. Equal Housing Opportunity. The Corcoran Group

is a licensed real estate broker located at 660 Madison Ave, NY, NY 10065. All listing phone numbers indicate listing agent direct line unless otherwise noted. All information furnished

regarding property for sale or rent or regarding fi nancing is from sources deemed reliable, but Corcoran makes no warranty or representation as to the accuracy thereof. All property

information is presented subject to errors, omissions, price changes, changed property conditions, and withdrawal of the property from the market, without notice. All dimensions

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WEALTH MANAGEMENT

Shanghai wants to

be an international

city and a center

for hedge funds”

—Mr. Zhang Xiaosong

WRITTEN BY Bruce McGuire

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

Greenwich Economic Forum

China’s economic growth over the last 40 years has

been astonishing. The rate may have slowed, but the

country continues to mint high-net-worth individuals

(HNWIs) at a break neck pace. The number of

Chinese with at least RMB ¥10 million (about US $1.5 million)

in investable assets increased from approximately 180,000 in

2006 to nearly 1.6 million in 2016, representing a more than

eightfold expansion within a decade.

Among HNWIs, the ranks of the richest

of the rich—those with at least RMB

¥100 million ($15 million) in investable

assets—have grown at an even faster rate.

There are now about 116,000 of these ultra-high-net-worth

individuals (UHN-

WIs), compared with 7,000 in 2006.

All in, China’s pool of private wealth

has ballooned to RMB ¥165 trillion

(about $24 trillion), more than six times

its level in 2006. 1 China’s ever-expanding

pool of private wealth— roughly

40% of which is held in cash and bank

deposits—is about twice the size of the

country’s GDP and represents one of the

fastest- growing accumulations of wealth

in modern history.

Collectively, China’s HNWIs have

about RMB ¥49 trillion (about $7 trillion)

in investable assets, and they have

become more open about how, and with

whom, they invest that money. Older

wealthy individuals in China, who were

the first generation to benefit from the

government’s embrace of a market-based

economy, were inclined to manage their

own money, favoring real estate and

“hot” growth stock. By contrast, newer

HNWIs (who often include the sons and

1

5th China Private Wealth Report, by Bain & Company

daughters of first-generation company

founders) are more willing to seek professional

advice.

The explosive growth of China’s HN-

WIs, combined with their increased willingness

to use professional advisors creates

tremendous opportunities for banks,

wealth managers, and fund managers,

including hedge funds.

The more established and skilled

western asset managers are taking notice

and deploying to mainland China for

the fi rst time. They are taking advantage

of programs such as the Qualified Domestic

Limited Partnership program run

out of Shanghai, that allows mainland

Chinese to invest in foreign hedge funds.

Foreign fi rms are also taking advantage

of new rules that allow foreigners to set

up wholly foreign owned enterprises

in China—the so called WFOE (pronounced

Woofee).

Even so, western firms as large as

Fidelity and BlackRock struggle with

brand awareness, and so the real nearterm

story is about the domestic Chinese

fund industry.

I first became aware that China was

building a domestic funds management

Photo credit: Shutterstock

industry in early 2011, when I was contacted

by representatives from Shanghai’s

FengXian District, one of the 18 districts

that make up the city, asking for help in

organizing a junket for government and

business officials visiting Greenwich, CT,

the “hedge fund capital of the world.”

When the delegation arrived, we

rolled out the red carpet and introduced

them to members of the local hedge fund

community, local academics and even

dined with the Mayor of Greenwich.

Greenwich is the example that the

Chinese want to emulate, proclaimed

Mr. Zhang Xiaosong, a member of the

72

EQ. SUMMER 2019 ISSUE equicapmag.com


WEALTH MANAGEMENT

FUND

TOWNS

The explosive growth of China’s high-net-worth

individuals has created opportunities for western

asset managers—and China’s growing domestic

hedge fund industry

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

Standing Committee and Vice Magistrate

of the Shanghai FengXian Committee

of the CPC People’s Government of

FengXian District.

“Shanghai wants to be an international

city and a center for hedge funds,” he

told us. “We want to know how to create

a good environment to attract the fi nancial

industry.”

When our guests returned to China,

they got to work building a hedge fund

enclave of their own.

Two years later, while speaking at a

conference in Greenwich, I descended

the stage, to be greeted by a Chinese

woman who asked, “are you Bruce Mc-

Guire, President of the Connecticut

Hedge Fund Association?” When I said

yes, she informed me that she was a Chinese

expat living in Stamford, CT, and

that she had been deputized by offi cials

in Beijing to make contact and arrange a

similar junket.

When asked if they were familiar with

the Shanghai initiative, they replied yes,

but that “Beijing Fund Town” would surpass

anything being built in Shanghai.

In China, as I have learned, they like to

organize their business districts by industry

type, and in the case of the asset

management industry, they call these

places “Fund Towns.”

Hedge funds didn’t exist in China six

years ago, but with the blessing of the

central and provincial governments, the

Chinese hedge fund industry is growing

rapidly — by my last count, there are no

fewer than 15 different fund town initiatives

in cities throughout China. The

total number of Chinese hedge funds

doubled since 2016, and assets under

management have more than tripled

over the past three years.

Since those first junkets, I have received

many Chinese delegations from

equicapmag.com

SUMMER 2019 ISSUE

EQ.

73


WEALTH MANAGEMENT

Photo credit: Shutterstock

China’s Stock Market is

Alpha Rich

If you haven’t been paying attention

to the Chinese capital markets, then

you will probably be surprised to

learn that the Chinese stock market

is already the second largest in the

world, while the Chinese bond market

ranks #3. China’s markets have

entered something of a sweet spot;

while they’ve grown more sophisticated,

adding new tools such as

futures and options, they’re still inefficient

enough to produce attractive

returns for skilled managers.

That’s thanks in part to the outsize

impact of individual investors, who

drive more than 80% of volume in

the Chinese stock market, vs. about

15% in the U.S.

It’s easier to produce alpha in

China. Alpha — the holy grail of investing

— is the investment industry

term used to describe portfolio

returns attributable to a manager’s

skill not general market forces. For

those outside of China and unable to

access the most talented Chinese

fund managers, take heart. The domestic

Chinese stock market, the

“A-Share” market has been made

more accessible.

Chinese authorities implemented

the Qualified Foreign Institutional

Investor program in an effort

to internationalize the RMB, and

allow (on a selective basis) global

institutional investors to invest in

RMB denominated capital markets.

Once licensed, foreign investors are

permitted to buy RMB-denominated

A-shares in China’s mainland

Shanghai and Shenzhen stock exchanges.

Thus, foreign investors

benefit from an opportunity to invest

onshore, which is otherwise often

insulated from the rest of the world,

and subject to capital controls governing

the movement of assets in

and out of the country.

HANGZHOU AT A GLANCE

Population: 9.8 million

(5th highest in China)

1) LIUHE PAGODA. 2) YUEFEI TEMPLE.

3) CHINA NATIONAL SILK MUSEUM.

4) WEST LAKE. 5) HANGZHOU ZOO.

6) HANGZHOU CUISINE.

6

1

Photo Credit: commons.wikimedia.org, chinadiscovery.

cities such as Hangzhou, Nanjing, Shenzhen

and Shanghai, all attempting to create

a fund industry enclave — the “Greenwich

of China.” As CTHFA President in

Greenwich, CT, “fund town #1”, I have

become a mini-celebrity in Chinese fund

industry circles. I have spoken at Chinese

fund industry conferences, been profi led

in China Daily Newspaper, and even

made an appearance in China Central TV.

In Hangzhou, a video of me touring the

local fund town is on display, and a picture

of me speaking to the local Chinese

press graces the fund town’s web site.

Hangzhou is an interesting case.

A city of 9 million, it is approximately

one hour south of Shanghai by high

speed rail. It is the capital city of Zhejiang

Province, a very wealthy and business-friendly

southern province that

is home to a vibrant tech industry anchored

by Chinese tech giant Alibaba.

As a sign of its growing clout Hangzhou,

was selected as the site of China’s first

and only G20 Summit back in 2016.

With 9 million residents, Hangzhou

is large by U.S. standards, but its planners

have made livability a priority. The

beautiful “West Lake” district is the

pride of the city and a destination for vacationers

from all over southern China.

The gated Yuhuang Shannan community—on

the same site where emperors in

the Song dynasty prayed for good harvests

centuries ago—takes city planning

to the next level; it is quiet and green,

exuding the feeling of a laid-back, highend

oasis.

2

3

4

5

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EQ. SUMMER 2019 ISSUE equicapmag.com


WEALTH MANAGEMENT

Like Greenwich, Yuhuang Shannan,

has become popular with the Chinese

hedge fund crowd. So popular, in fact,

that local authorities turned the entire village—until

recently a hub for the design

industry—into an exclusive enclave for

China’s aspiring masters of the universe.

More than 1,000 hedge funds and private

equity funds, overseeing a combined

RMB ¥580 billion (US $84 billion), have

registered in the village since its offi cial

rebranding in May 2015 as, straightforwardly

enough, Yuhuang Shannan Fund

Town (YSFT). Unlike Greenwich, tax

subsidies amounting to 30% of a typical

firm’s tax bill add to the town’s appeal, and

YSFT now boasts one of China’s largest

hedge fund clusters.

Realizing that they are in competition

with other Chinese fund towns, Hangzhou

has been the most persistent in cultivating

good ties with Greenwich, CT. So

much so that in 2018, we worked to forge

a sister-city relationship which gives them

significant street cred back in China.

Not too long ago, the thought of a

hedge fund village in Hangzhou, or anywhere

else in China, would have struck

most observers as absurd. Hedge funds

weren’t officially sanctioned in until 2012.

Before then, authorities tended to focus

their development plans on the country’s

vast middle and lower classes. Havens for

elite money managers, haven’t traditionally

been a priority for the ruling Communist

Party.

Today however, the concept isn’t so

outlandish. The Chinese hedge fund industry

is booming, thanks to support from

securities regulators and the gradual liberalization

of local equity and bond markets.

For YSFT, and the 15 smaller fund

towns scattered across the country, longterm

success may ultimately depend on

what kind of China emerges over the next

few years. If President Xi Jinping’s government

follows through on pledges to

give markets and service industries a central

role in the $11 trillion economy, the

hedge fund boom may have a lot further

to run. If, however, policymakers backtrack

or the country proves pessimists

right by tipping into a fi nancial crisis, the

tranquility in China’s Greenwich-like

communities is unlikely to last. It is also

important to realize the big difference between

the Chinese and western regulatory

environments. As an example, in 2015

after China suffered dramatic declines

in its stock markets, regulators passed a

law making it a criminal offense to be an

“unfriendly short seller”.

For economic planners keen to reduce

the nation’s reliance on infrastructure

spending and heavy manufacturing,

there’s a lot to like about hedge funds.

They’re non-polluting, creating highskilled

jobs, and adding more choice to

a domestic investment landscape dominated

by bubble-prone property and equity

markets.

Investor inflows fueled a 55% jump in

industry assets, while the number of registered

funds has risen to a record 27,015,

according to the Asset Management

Association of China.

I believe that the bilateral relationship

between the US and China, and

the integration of Chinese markets into

global capital markets represents the

central issue of our times. Great fortunes

will be made and lost, and I for one am

thankful to have a ringside seat, and to

be living in interesting times! ■

Bruce McGuire is Managing Partner of Global Alpha

Research, LLC and Co-Founder of the Greenwich

Economic Forum.

Merging the innovation of a young growing firm with the experience

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equicapmag.com

SUMMER 2019 ISSUE

EQ.

75


FOOD & DRINK

LORD & LADY

CARNARVON RELAX

WITH THE 1936 ROLLS

ROYCE PHANTOM

BEFORE AN EVENINGS’

FESTIVITIES.

Glass

ADAM VON GOOTKIN’S HIGHCLERE GIN IS DISTILLED FOR THE

DISCERNING — AND DOWNTON ABBEY FANS

FROM

GARDEN TO

WRITTEN BY Jacqueline Burt Cote

There have likely been many to make the lofty (or dubious) claim that whiskey

runs through their veins, but the biological impossibility seems somehow

plausible in the case of Adam von Gootkin. His ancestors ran Chafee & Co.

Distilling until the distillery was shut down for tax evasion on a Canada-bound

shipment of whiskey. During prohibition, the family opened the opulent Chafee’s

Hotel on the Connecticut River featuring a notorious speakeasy.

In 2011, von Gootkin—along with his partner, Peter

Kowalczyk—brought his family’s then-dormant

legacy to life with Onyx Moonshine, the Nutmeg

State’s fi rst authentic high-end moonshine and whiskey

brand. And then there’s his most recent venture into

the world of spirits, Highclere Castle Gin, which has

taken the 36-year-old entrepreneur far from his home

state to the juniper-covered hills of Hampshire, England

surrounding Highclere Castle... or as you might

know it, Downton Abbey.

Fans of the award-winning series and soon-to-be

fi lm are more than familiar with the image of Highclere

Castle, which serves as the fictional abbey’s stunning

location. But even the most devoted Downton

watcher may be unaware of the Jacobethan style country

house’s history, or the fact that it’s situated on a fully

functional 5,000-acre estate, home to the 8th Earl and

Countess of Carnarvon.

Interestingly, von Gootkin’s fi rst collaboration with

the Highclere Estate was a detour from spirits: the Highclere

Castle Cigar. Per von Gootkin, “enjoying cigars

has been a tradition at Highclere Castle since the 1800s

and continues today.” Sparked by von Gootkin’s friendship

with Foundation Cigar Company founder and

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FOOD & DRINK

world-renowned cigar

blender, Nick Melillo, the

Highclere Castle Cigar

was crafted after years

of travel, research and

building special relationships

throughout Central

and South America.

While the Highclere Cigar

is distributed around

the US and the UK to

many accolades and

awards, Lord Carnarvon

and von Gootkin agreed

that Highclere Castle’s

legacy had still more to

offer the world.

“W hilst Dow nton

Abbey has brought

much attention to the

beauty and heritage of

our home, Highclere

Castle, there are so many

more layers of both history

and diversity in the

landscape and world in

which the Castle sits as

the centerpiece,” Lord

Carnarvon tells EQ.

A farming estate

which produces mixed

crops, Highclere is home

to “a large herd of sheep,

conservation banks

of wildflowers, beetle

banks, stubble [fields] for birds, old chalk

downland and ancient Bronze Age landscapes,”

Lord Carnarvon continues.

“Highclere was owned by the Bishops

of Winchester for 800 years. The Estate

had good field for pasture for horses,

they grew crops such as oats and created

a walled garden for fruits trees and

herbs. The walled garden is still here today—the

Monks’ Garden—framed with

lavender borders, and walking through it

we have used our heritage as our inspiration.

Behind the Monks’ Garden lies

the Orangery, and as in past centuries we

grow citrus fruits. Meanwhile, juniper has

grown on the ancient hills for hundreds of

years and there is also some planted in the

gardens. Optimistically, we have planted


Super premium

gin is the fastest

growing spirits

category in

the world”

— ADAM VON GOOTKIN

LORD CARNARVON ENJOYS

A HIGHCLERE CASTLE CIGAR

ever more juniper, since

we began this project,

given it is the heart of every

gin.”

Even the bottle pays

close attention to detail,

another trademark

of von Gootkin and the

Carnarvon’s uniquely

high standards. “It reminds

us of the squared

Castle towers, whilst

the beautiful purple colour

draws again on the

spiritual color associated

with the Bishops,” says

Lord Carnarvon.

Centuries of tradition

are catching up with the

modern market at the

perfect time, according

to von Gootkin.

“Super premium gin

is the fastest growing

spirits category in the

world,” he says. “When

you combine the deep

roots of Highclere Castle’s

heritage with an

exceptional tasting gin

and a strong global distribution

network, we’re

seeing markets coming

on board faster than we

ever expected. Availability

will begin in the United States in July/

August of 2019.”

Lord Carnarvon finds himself likewise

marveling at the joint venture’s successful

trajectory thus far, on multiple

levels. “It is amazing how projects begin,

how an idea has led to new friendships

and become real—part of our real

Downton Abbey story,” he says.

“I think we all started thinking it was

a good idea but then you have to go out

and test it and ask for opinions. It has

however already been so enthusiastically

received and customers really appreciate

the detail and care of the past

two years, which we have used time and

again to ensure we think it is better than

the best.”

equicapmag.com

SUMMER 2019 ISSUE

EQ.

77


FOOD & DRINK

Highclere Castle...

or as you might know it,

Downton Abbey

Distilled with botanicals from Highclere’s

own land, the taste is an absolute

departure to a time and place that the majority

of the population has only seen on

the screen. “The authenticity of the story is

truly rare in the world of spirits,” says von

Gootkin. “It’s resonating with people.

And the reason it’s resonating

with people is because it’s real.”

“Through books and TV

we have sought to share the

journey from field to table,

of provenance and now

have sought to extend our

journey to create a gin,”

says Lord Carnarvon. “The

theme is Garden to Glass. It

is again about provenance,

heritage, producing something

excellent, distilling taste,

style and memories.”

It appears that distilling style and

memories is von Gootkin’s signature

skill, and Highclere Gin is the proof. ■

Gin & Tonic

HIGHCLERE STYLE

INGREDIENTS

50 ml HighClere Castle Gin

Artisanal Tonic Water

Fresh Orange Squeeze

G A R N I S H W I T H

Orange Peel and Rosemary Sprig

SERVE IN

Chilled Highball or Balloon Glass

78

EQ. SUMMER 2019 ISSUE equicapmag.com


made in new york

www.rivaynyc.com


“Great local late summer

corn...it can be a great relish,

an amazing side dish or the

fresh pop in our Striped Bass

Provencal or a similar dish.

— PETER AMBROSE

FOOD & DRINK

NO BETTER

PLACE TO SAMPLE

CUISINE THAN

AT A BEACH-SIDE

PARTY

HAMPTONS

FOOD SCENE

WRITTEN BY Alex Lehnen aka Alex von Salad

The “Hamptons,” which is not what the locals call this

area and most likely never will, has an abundance of

excellent food sources. Whether getting vegetables

at the farm stand or going to a great local restaurant, there

is something for everyone. However, knowing which farm

stands are selling their own produce and experiencing great

local food prepared by our top-notch East End chefs is a

complicated task because not everything in your rear-view

mirror is locally sourced.

There is nothing wrong with eating

other good things that are not local, but

if you’re already fighting traffic on Friday

afternoons to get out of the city heat in

the middle of the summer or maybe Blade

it to Easthampton airport, then why not

eat local? Experience what local chefs

and local farmers have in store for you.

After all, the “Hamptons” got its start as a

farming, fi shing and whaling community

way back in the 1640s.

I first came out East the summer of

1997. I was running a nightclub in the city

and was asked by the owners to come out

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FOOD & DRINK

Photo Credit: chefpeterambrose.com

on weekends to man the door at the Tavern

nightclub on Tuckahoe Lane (an old

potato barn) in Southampton.

The Tavern was the epitome of

NYC-Hamptons nightlife. It has a great

crowd with many celebrities, models,

photographers and artists.

Friday afternoons I’d jump in my ’69

Triumph and head east on the LIE. Sunday

afternoons I returned. I was officially

a Hampton weekend commuter except

I came out to work, not to vacation.

I got to experience a few local restaurants

and slowly got the feel for one of

the most beautiful places on Earth. I

fell in love with the Hamptons and have

been ever since.

My fi rst real culinary experience was

1999 at Pacific East in Amagansett which

was then helmed by Alexander Duff &

Chef Michael Castino who had successfully

launched Pacific Time on Lincoln

Road, one of the best restaurants on Miami

Beach at the time together with Jonathan

Eismann.

Their Hamptons outlet was superb.

Pan-Asian cuisine which was the style of

the moment in the late nineties.

It was also the year I opened my fi rst

restaurant in NYC in the Flatiron District.

“Von’s Aura” was a true Supper Club

where the menu changed daily dependent

on the ingredients I found at the

Union Square Farmers Market that day.

Over the years I was involved in a

few East End Eateries, one being Banzai

Burger on the Napeague Stretch and a

pop-up Japanese summer spot on Shelter

Island called Katana. Both were multi

concepts Japanese Driven.

After a stint out West, I took my newfound

food philosophy and started my

own catering company out East until last

summer when I decided to buy a farm in

the Hudson Valley and grow my own Japanese

specialty vegetables.

Over my 20+ summers in the Hamptons

I was fortunate to meet many amazing

chefs and many great farmers. I have

worked with many hand in hand and

have used local ingredients strictly for all

my clients and events.

One of my favorite farm stands during

the summer is the Babinksi Farm stand in

Sagaponack (not to be mixed up with the

Babinski Farm Stand in Watermill). Same

name, but unrelated. Babinski in Sagaponack

is run mainly by Andy, the patriarch,

and has an ever-rotating seasonally

dependent selection of local vegetables

ABOVE: MATTY BOUDREAU OF THE PRESTON

HOUSE’S PRIME STRIP STEAK; MIDDLE:

PETER AMBROSE, MEAT FRESH OFF THE

GRILL; BOTTOM: ERIC MILLER ADDING THE

FINISHING TOUCHES

and fruit. That counts for all farm stands

by the way. Of course, they will sell other

items during the summer, which they

source from other farmers on Long Island.

Edible East End is a great source if you

want to find out what’s available at the

time depending on the growing season.

Another favorite of mine is the Fairview

Mecox Farm owned and run by

the Ludlow Brothers. Here you can fi nd

anything, and I like the one-stop-shop

possibilities.

They also bring in amazing grass-fed

meats from one of their cousins upstate

and they have amazing gluten free natural

ice cream. Did I mention the pies?

Anyway, there is an abundance of

fresh ingredients available at a lot of farm

stands. Keep in mind it takes time to get

to each of them during the crazy summertime

traffi c. Hence, my preference of

visiting some that have a good variety of

product. Another favorite spot is the Amagansett

Farmers Market which has been

there forever. We used to get lunch there

during the Pac East times. There you have

local produce and gourmet items and the

lunch sandwiches are divine.

If you’re already out that way, a must

stop is the Aquaculture Fish Farm towards

Lazy Point on Cranberry Hole

Road. You’ll be able to pick up some of

the freshest fish in the East End along

with some Goose as they also have geese

pens—this is an interesting combo, but a

very symbiotic relationship. They’ve been

farming fish since 1974. The cool thing

there is you can bring a bottle of rosé and

order some fresh take-out and then truck

your goodies home that you want to cook.

It’s an absolute must stop—but beware—

this is not your white cloth Hamptons fish

market; this is a very relaxed, casual place.

Think flip-flops and shorts, also a great

bike ride coming from Amagansett, but

watch out for the ridgebacks!

If you’re headed to the North Fork

there is one farm I really like because

they specialize in Asian vegetables and

I used to shop there for my Shelter Island

pop-up Sushi bar. They’re called

Sang Lee Farms in Peconic and they are

lovely people. If you’re over that way

you must stop at Southold Fish Market

which in my opinion is the best fi sh

money can buy unless you catch it yourself

or are friends with some of the pirates

in Montauk.

Tell Charlie I said hello.

(Continued)

equicapmag.com

SUMMER 2019 ISSUE

EQ.

81


HAMPTONS

FOOD SCENE

FOOD & DRINK

seven questions with Alex Lehnen

I would like to introduce to you a handful of local chefs who represent the food scene Out East properly and are taking food and our

locally grown produce to the next level. They are honest, professional and innovative chefs and I would highly recommend trying

out their amazing dishes when you’re out East this s ummer. Maybe I will see you there. Enjoy and Bon Appetit!, Alex Lehnen

1

What’s your favorite

vegetable to use and why?

PETER AMBROSE:

Great local late summer corn. For me I

can make a meal on it. When cooking for

others, it can be a great relish, an amazing

side dish or the fresh pop in our Striped

Bass Provencal or a similar dish.

ERIC MILLER:

My favorite vegetable is summer

corn. There are so many ways to use

it—in soups, bisques, velouté, salad

and salsa to name a few.

COLIN AMBROSE:

I love sweet corn. Roasted it gets even

sweeter, works well with eggs, chicken,

fish, in soups and salads. I had a

counter customer named Dan. He was a

dinner regular for ten years and called

me the King of Corn. I liked that.

MATTY BOUDREAU:

Celeriac aka celery root can be used so

many ways. It’s great raw in slaw, boiled

and smashed or crispy, fried in extra

virgin olive oil, and for those healthy minded

folks, it’s allowed on most diets.

2

What local farm(s) do you

work with?

PETER AMBROSE:

I typically work with Balsam Farms,

Mecox Bay Dairy, Wells Pig Farm,

Pike Farms and Satur Farms.

ERIC MILLER:

We like Multi Aquaculture Systems

which does a fantastic job at growing and

raising. Paulette Satur of Satur Farm

is an old friend. We also work with Balsam

Farms and Wesnofske Farm.

COLIN AMBROSE:

My neighbors Bette and Dale have been

providing local organic food for the plates

at Estia’s Little Kitchen for more than 10

years. I also work closely with Marilee

Foster from Foster Farm in Sagaponack.

That said, Scott Chasky from Quail Hill is my

guiding light. As my best gardening advisor,

Eric Miller

Silver Lining Diner

silverliningdiner.com

Peter Ambrose

Endless Summer Events Catering

chefpeterambrose.com

@chefpeterambrose

Photo Credit: Noah Fecks, wwd.com

Photo Credit: chefpeterambrose.com

Scott and I have conceived more farm-born

events than anyone else I know of, it started

in 1992 at Estia in Amagansett. I’m blessed

to have friends like these farmers.

MATTY BOUDREAU:

Browder eggs rock! Paulette Satur is a

green goddess, Ian at Balsam Farms is a

genius, Goodale Farm in Riverhead has epic

dairy and the Corwin family at Crescent

Farm produces the best Long Island duck.

3

What’s your new summer

dish for this season?

PETER AMBROSE:

I’m working on a Bulgogi Seared Tuna which

will feature a Sesame Crusted Seared Tuna

with a Bulgogi Sauce, Gochujang Peanut

Sauce, Grilled Corn and Kiwi Relish served

over sticky rice charred on the grill.

ERIC MILLER:

A new dish, soft shell crabs brined in

buttermilk, rolled in corn flour, and served

with a corn-chili and tomato salsa, accompanied

by a tomato water vinaigrette.

COLIN AMBROSE:

My new summer dish? Stay tuned.

Last year it was a sweet corn and Amber

Waves Farm wheat berry dish,

it’s on my blog at estias.com.

MATTY BOUDREAU:

New menu; I took my yearly pilgrimage

to Spain and drew up a new dish from my

travels. Charred Pork Steak, brushed

with harissa topped by a lardon, side of

watermelon radish and baby arugula

salad with a lime mustard dressing.

4

What do you eat for

breakfast?

PETER AMBROSE:

For breakfast, I usually craft myself

avocado toast—sourdough bread,

avocado, and LnW Market’s Green

Siracha with a Sea Salt topping.

ERIC MILLER:

When I get the chance to eat breakfast, it’s

buttermilk pancakes and real Vermont

maple syrup; but mostly it’s just coffee.

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FOOD & DRINK

COLIN AMBROSE:

Breakfast is generally a few corn tortillas

with brown rice, red beans and

adobo pork, finished with a scrambled

egg and some of Juana’s avocado salsa.

MATTY BOUDREAU:

I go light on breakfast. I drink Bulletproof

coffee and have a hard-boiled egg, avocado

with lime or an omelet with greens.

5

Name three East End chefs

that you respect for their

style, skill and philosophy

PETER AMBROSE:

Jeremy Blutstein. who takes localism to a

whole other level. He has a commitment

to localism that requires an intense

level of dedication to hard work that he

has committed to along with his entire

staff. They are working harder on new

flavor combinations and profiles that are

bold, imaginative and created without

fear of failure. Also, Gretchen Mesner.

Just a kick-ass Chef, who has pumped

out great food from one of the busiest

kitchens in all the Hamptons. An individual

who has persevered through some life

curve balls to continue to kick ass in

the kitchen. And Joseph Realmuto. A

friend to all in the culinary community.

Someone we can all aspire to match

in his demeanor and respect which he

shows to his colleagues, employees both

front and back of house and also his loyal

clientele. A chef family tree that Ancestry.

com would have a hard time following.

ERIC MILLER:

I love Colin Ambrose of Estia. Joe Realmuto

of Nick and Toni. Laurent Tourondel

of BLT Burger and Sag Pizza.

COLIN AMBROSE:

My pals, Jeremy Blutstein, Joe Realmuto

and Jason Weiner like to make human

pyramids; it’s always a pleasure to take

a position. I’m indebted to them as they

help me when eventing (both on-site and

off) gnarly. Another stand-out guy, Dennis

MacNiel, has been a huge supporter since

the early 1990s. He has an Estia brunch

dish “Den Den’s” named in his honor.

MATTY BOUDREAU:

Terry Hardwood, my mentor, took me

from a line cook and gave me my first

sous chef job and helped mold me into

the chef that I now am. Sam McClelands

bring his A-game every day. He has some

of the best fish dishes on the East End.

Michael Rossie. He’s hands down the

best chef on the East End in my opinion.

edibleeastend.com

Colin Ambrose

(no relation to Peter)

Estia’s Little Kitchen

estias.com

@chefambie

Matty Boudreau

The Preston House & Hotel

theprestonhouseandhotel.com

@chef_matty_boudreau

Photo Credit: Daniel Brennan

6

If you could change anything

Out East that would help your

food movement what would it be?

PETER AMBROSE:

I was on vacation in Seaside, FL last year and

loved the fact there were food trucks intermingling

and coexisting with great restaurants. I

believe food trucks would not hurt restaurants

but rather create towns that would be food

destinations and get people out more often. “I

am going to Sag Harbor tonight to eat, not sure

where, not sure what, I just know that Sag Harbor

has a great food scene.” I would also love

to have a food truck and be successful with

it, but I do not think current laws allow it.

ERIC MILLER:

Every one should use fish that is local and

sustainable, and do their best to support the

local bay men/fishermen and farmers.

COLIN AMBROSE:

I get to change things in my garden every summer

as I choose what seeds to plant and where

to plant them. Changing anything else on the

East End would be crazy, it’s changing all the

time without my help. Best for me to stay centered

and accept the things I cannot change.

MATTY BOUDREAU:

Affordable housing. We lose so much by not having

our employees and their families able to live near

their workplace. People who work in this community

should be able to live in it. It would create a better

sense of environment, connection and community.

7

You’re shipwrecked on a

deserted island and you grabbed

three items last minute before

your ship sank. What are they?

(knives don’t count)

PETER AMBROSE:

If I were shipwrecked, a fishing pole,

a 50-degree wedge and a golf ball

with a cover that could hold up.

ERIC MILLER:

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

COLIN AMBROSE:

Shipwrecked, there would be a rigged fly rod

on the deck so that would be the last thing

I’d grab before jumping. It would be nice

to have a hat and a stand-up paddle board,

it would be easier to spot the fish on.

MATTY BOUDREAU:

A cast iron lodge pot, a box of thin mints and

a really nice bottle of red burgundy. ■

equicapmag.com

SUMMER 2019 ISSUE

EQ.

83


TUESDAY

DECEMBER 3,

2019

DELANO HOTEL

SOLARIUM

1685 COLLINS AVE

MIAMI BEACH

DINNER ON

THE DELANO

SOLARIUM

Equicap’s Second Annual Dinner

on the eve of Miami Art Basel


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iconic lines. Bezel in vibrantly-coloured and

patented red ceramic. In-house chronograph

UNICO movement. Interchangeable strap.

Limited edition of 500 pieces.

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