New York, NY JONATHAN MILLER Executive Managing Director/Principal (917) 359-2706 (M) (212) 776-1287 (O)

PROFILE Jonathan Miller is an Executive Managing Director and Principal in Lee & Associates’ New York office. He has been selling investment real estate for almost 60 years and specializes in the sale of net leased land under major buildings in Manhattan.

CAREER SUMMARY Mr. Miller has completed transactions aggregating more than a billion dollars. Properties sold --- Office Buildings, include 500 5th Avenue; Apartment Buildings, include 80 Park Avenue, Hotels, include THE AMBASSADOR EAST in Chicago; Garden Apartments, Retail Condominiums, and Packages of Unsold Co- Ops. Development Sites he has assembled include, the Third Avenue blockfront, North side 60th and 61st Street, Mr. Miller originally assembled this site for Joseph E. Levine and later resold it to Bowery Saving Bank.

Mr. Miller won the REBNY “Most Ingenious Deal of The Year” Award for a transaction involving the creation of the flagship store for Barneys New York at 61st Street and Madison Avenue.

His specialty: He has probably sold more major Net Leased Fee positions in Manhattan than any other broker, Including:

• Land under 444 Madison Avenue – (The Burberry Building --former Newsweek Building); THIS INVOLVED A RARE AND POSSIBLY UNIQUE 1031 TWO PARTY EXCHANGE FOR ANOTHER PROPERTY WITH NO THIRD PARTY INVOLVED AND NO CASH PAID OR RECEIVED BY EITHER PARTY. • Land under 720 Fifth Avenue – Sold Fee position 3 times; sold leasehold once • Land under 460 Park Avenue – Sold Fee position twice • Land under Nike Town (57thj Street) • Land under 57 W 57th Street (sold fee twice) • Land under 110 W Central Park South • Land under 2 Tudor City Place • Land under Trump International Hotel at Columbus Circle

EXPERIENCE • 2011 to present: Executive Managing Director/Principal, Lee & Associates • 1984 to 2011 Head of Investment Sales, Grubb & ellis • 1964 to 84: Sales Person, then Real Estate Broker, then partner, James Felt & Co.

EDUCATION • Cornell University (B.A. majored in Philosophy)

COMMUNITY INVOLVEMENT • REBNY, Member; former Chairman of Sales Brokers Committee • New York University, Real Estate Institute: Professor-- 10 years

CO-BROKERS • Henry Rice: 660 Madison Avenue (Barneys Deal) & Land under 460 Park Avenue • Vin Carrega: 500 5th Avenue • Sidney Rosenthal: 1000 Madison Avenue (Commercial Condominium); & Garage Deals • Darcy Stacum: 21 East 54th Street: Sale of 99 year leasehold • Miriam Halpert: My Partner for 25 years: Couldn’t have done it without her.

New York, NY JONATHAN MILLER Executive Managing Director/Principal (917) 359-2706 (M) (212) 776-1287 (O)

On the reverse, “My Resume”, are a partial list of transactions I have consummated as broker, however, here’s what selling these properties really entails!

In the 1990’s I taught a course for ten years at The Real Estate Institute at New York University called “How to Sell Investment Real Estate”. I would tell my class, “The CONCEPT of selling investment properties is simple: “Find a seller, find a buyer, make a deal”. Most of the transactions we brokers work on fall into that category. However, the challenge comes from selling the “unsaleable,”--- solving the “Rubik’s Cube” of a real estate transaction. I call it “Thinking Outside the Box!”

Here’s an example: Some years ago a broker came to me with a package of two parking garages he was trying to for sell for a client who owned and operated garages. Price $10,000,000 for both. I had the following immediate negative reaction: In this business, selling investment properties, finding the “product” is the difficult part. And if a property is decently located, properly priced, finding a buyer is relatively easy. And the broker who brought me this so called “opportunity” was the leading garage specialist in the city!

If he couldn’t sell these properties there had to be something very wrong with them--- and there was! First: he had net leased the garages to other garage operators, one for 15 years and the other for 21 years. In the garage business the best buyer for a garage is another garage operator--- who will buy a garage with no lease, or a short lease. He will not buy a garage with a 15 or 20 year lease. He wants to operate the garage NOW. (So we can eliminate garage operators from the list of prospective purchasers for these properties ). However, there are many other investors who buy this type of investment. But the second problem here was price. I knew that when a garage operator leases a garage to another garage operator, the rent is always “higher than high”. If the rent is only “high” he will operate it himself! And since the rent was very high – (although the return, 8%, was attractive), the price was unachievable because the price for “brick and mortar” was too high. Prospective buyers were proprerly concerned that if either of the tenants walked from their lease, the new owner would never find a new tenant at the same rent. Thus the broker could not sell these properties.

I thought “Outside the Box”: I told the broker that I could get his seller, his price AND sell the property to the first buyer I offered it to! “How are you going to do that”? he said. “Call your seller”, I said, and ask him if he will take $5,000,000 in cash! (half what he wanted!) AND simultaneously net lease back the two garages for 15 years at a rent of $400,000 P.A. thus earning $400,000 himself, since the properties earn $800,000 P.A. This position(this to- be-created net lease), subject to the existing net lease) is called a “Wrap around lease” or a “Master Lease” and the existing garage tenants become subtenants under the same provisions as in their current leases. And any steps-up in rents over the term of the existing leases would be split 50/50 between the new buyer and the Seller. Here’s how the arithmetic works: The Seller (holder of the Master Leasee) would get over $11,000,000 over the term of the lease, ( i.e $5,000,000 at the time of the sale plus $400,000 p.a for 15 years. equals $6,000,000 PLUS half of the step-ups in rent over the term.) And if one of the tenants were to walk from his lease, the Seller, a garage operator himself, could step back in and run the garage himself. And make money, because because his rent to the primary owner is extremely low.

My colleague called his client and asked if he would do that deal. That gentleman took less than a minute to say yes. I then called one of my good clients who owned garages and understood the concept and the arithmetic. I explained that he could buy “$10,000,000 of garages” for $5,000,000 and make 8%. He said YES on the phone and asked for time to drive past the locations. An hour later he called to confirm the offer which closed as soon as complicated papers were drawn and signed.

These “Outside the Box” transactions are the challenge and reward of our business and the stuff of “The Most Ingenious Deal of the Year” Awards.