Developer Charles Cohen needs a New York court docket to provide him extra time to resolve a $187 million private debt owed to Fortress Funding Group, arguing that he has made progress towards compensation and is actively pursuing additional asset gross sales.
Cohen stated he has labored “tirelessly” over the previous 18 months to scale back the duty, together with promoting two New York buildings to Vornado Realty Belief and utilizing $52 million of the proceeds to pay Fortress, in keeping with a Jan. 13 affidavit reported by Crain’s New York. He contends that regardless of what he characterizes as extreme litigation from Fortress’ attorneys, his staff has delivered “distinctive” outcomes beneath tough circumstances.
“What I would like is extra time to proceed doing the best factor,” he stated within the affidavit.
Fortress, nonetheless, says its endurance has run out. The personal fairness agency, which manages roughly $50 billion in property, is asking the court docket to nominate a receiver to promote parts of Cohen’s 12 million‑sq.‑foot portfolio to fulfill the debt. Fortress has additionally accused Cohen of improperly transferring his Connecticut property and 220‑foot yacht to his spouse to defend them from collectors — allegations Cohen denies.
In its Jan. 14 response, Fortress argued that Cohen “can’t be trusted” to supervise the gross sales course of.
Cohen, who has spent practically 5 a long time on the household‑run Cohen Brothers, controls main Midtown properties together with 805 Third Avenue, 3 Park Avenue and 750 Lexington Avenue. He just lately bought 623 Fifth Avenue and three East 54th Road to Vornado at distressed pricing and says Vornado chairman Steven Roth is exploring extra acquisitions or joint ventures.
Cohen claimed within the affidavit that he was in talks to promote a White Plains office building and plans to market 622 Third Avenue, a 1 million‑sq.‑foot tower close to Grand Central.
One asset Cohen insists should stay untouched is the Pacific Design Heart in West Hollywood, a 1.6 million‑sq.‑foot complicated he calls important to the steadiness of his whole portfolio. Promoting it, he argues, would “jeopardize” operations and result in the “collapse” of his enterprise.
Appointing a receiver would set off mortgage defaults throughout his holdings, Cohen claimed, forcing banks to demand compensation forward of Fortress and probably leaving the agency “worn out.”
Fortress disputes this, saying receivership wouldn’t set off default on the Pacific Design Heart and that the property’s excessive worth might permit Fortress to be repaid extra effectively than by means of New York asset gross sales.
– Joel Russell
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