It appears billionaire Charles Cohen can’t catch a break.
U.S. Financial institution has filed to foreclose on 222 East 59th Avenue, a part of Cohen Brothers Realty’s holdings. The lender says the borrower defaulted in September and has did not pay its payments. The Cohen Brothers affiliate took out $7.5 million linked to the property in 2015, based on the grievance.
Though the constructing on East 59th Avenue is amongst his smaller properties, it’s the most recent thorn in Cohen’s facet. The billionaire has been preventing and typically dropping foreclosures battles, personally owing Fortress Credit score $187 million.
The property is a 5-story, 45,000 square-foot low-rise workplace constructing, based on tax information. Cohen Brothers developed the constructing in 2001. The East 59th Avenue constructing is technically separate, however thought-about a part of the Ornament & Design constructing, dwelling to greater than 100 showrooms and open solely to commerce professionals, based on its web site.
In response to David López, normal counsel of Cohen Brothers Realty, the swimsuit is said to a maturity default. The mortgage time period expired October 2025, he mentioned.
López blamed the default on excessive floor lease for the property.
“After two (2) years of lively negotiations, the bottom lessor reneged on a deal to change the bottom lease consistent with in the present day’s values of equally located buildings,” López mentioned through e mail. The failure of negotiations prevented Cohen Brothers from refinancing the present debt, he mentioned.
“It’s a disgrace.”
Charles Cohen is known as as a defendant as a result of he served as a guarantor on the mortgage. Nonetheless, the lender shouldn’t be in search of aid from Cohen personally.
Earlier this 12 months, Cohen misplaced the agency’s headquarters at close by 750 Lexington Ave in a foreclosure auction. The tower went again to the lender.
Cohen is concurrently being hounded by Fortress Credit score. The lender scored a $187 million personal judgement towards Cohen final 12 months and has been pushing to collect. Cohen bought each 623 Fifth Avenue and 3 East 54th Street to Vornado Realty Belief for $218 million and $141 million, respectively, utilizing a few of the proceeds to repay his debt.
Forbes estimates Cohen has remained a billionaire however had misplaced about $2.1 billion of his web value between 2023 and 2025.
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