The Walls Are Closing in on Charles Cohen

It’s been a rough stretch for billionaire developer Charles Cohen.

In the same week that an Italian court ordered the seizure of Cohen’s 220-foot superyacht Seasense, a New York judge cleared the way for foreclosure on one of his most prominent office properties, 750 Lexington Avenue.

Together, they paint a striking picture of a real estate mogul facing mounting pressure on all fronts — at sea and on land.

Fortress Investment Group has been pursuing Cohen for months after winning a $187 million judgment tied to his personal guarantee on a half-billion-dollar loan default. Now, Fortress is going after his prized personal assets, including Seasense, which was detained in the port of Loana, Italy. The $48 million yacht, complete with a gym, pizza oven, elevator and 10-meter pool, is locked down until Cohen pays up. Fortress claims he transferred the yacht and his $20 million Greenwich mansion into a trust under his wife’s name to shield them from creditors.

Cohen, who has proudly shown off Seasense in glossy yachting publications, had once envisioned sailing the French Riviera and exploring the Greek isles aboard his floating palace. Now, it’s caught in the crosshairs of one of the industry’s most brutal legal brawls.

His 31-story tower at 750 Lexington Avenue — home to Cohen Brothers Realty’s headquarters — is now heading toward foreclosure after its special servicer, LNR Partners, won a summary judgment. Cohen personally guaranteed the $130 million loan tied to the Midtown East property, but pandemic-era struggles left it bleeding tenants and value. Zara left its retail space in 2022, followed by other office tenants, and net operating income plunged 74 percent compared to when the loan originated. The building’s value has since dropped to just $50 million, down from nearly $300 million a decade ago.

That foreclosure is just the latest domino to fall. Cohen has already lost a massive portfolio of movie theaters and other assets to Fortress in one of the largest UCC foreclosures on record. Now, Fortress is pressing to collect its $187 million judgment, pushing to appoint a receiver to take control of Cohen’s remaining Midtown buildings.

Cohen has managed to buy himself a bit more time. A state judge recently allowed him to continue managing the sale of three Midtown towers in an attempt to satisfy the Fortress judgment. But Fortress argues Cohen is dragging his feet, and the court has set deadlines through September for both sides to make their case.

Meanwhile, Cohen is also fending off foreclosure on his Houston property, Decorative Center Houston, tied to a $50 million loan default. And overseas, French courts have reportedly seized assets from Cohen’s vineyard and cinema.

Cohen insists he isn’t trying to dodge debts, claiming in court filings that he still has enough equity to cover his obligations. But with foreclosures, asset seizures and lawsuits stacking up from Manhattan to the Mediterranean, Cohen’s rough stretch is far from over.

There was plenty of other news this week. Ohad Fisherman spoke publicly after being cleared of sexual battery, Steve Croman was sued by his father and Grant Cardone and Penn-Florida teamed up for a condo conversion.

Croman feud erupts: Steve’s father looks to dismantle family partnership

One of New York’s most notorious landlords is facing a battle with his own father, who is seeking to dismantle their family’s 64-building Manhattan portfolio. Edward Croman sued his son, major landlord Steve Croman, this week. He accused his son of “rampant fraudulent mismanagement,” including withholding rental income, proceeds from six property sales and repayment of family loans.

Labeled a “monster”: Ohad Fisherman speaks out after being cleared of sexual battery

Miami-Dade prosecutors dropped the sexual battery charge against real estate broker Ohad Fisherman, who was set to stand trial this week for allegedly helping Oren and Alon Alexander rape a woman in Miami Beach. Fisherman was emotional at a press conference on Wednesday, thanking God and his family.

Grant Cardone, Penn-Florida team up for possible 101 Via Mizner condo conversion

Grant Cardone and Penn-Florida Companies are teaming up to possibly convert the distressed 101 Via Mizner multifamily project in Boca Raton into condos. U.S. Bankruptcy Judge Peter Russin will consider a motion by the Penn-Florida entity that owns the 14-story, 366-unit building to sell the property for $235 million.

Office market continues heating up as deals hit $40B

The U.S. office market posted its fourth consecutive quarterly decline in vacancy rates, signaling strong recovery momentum. Vacancy fell to 23.2 percent in the second quarter, dropping 15 basis points from the prior quarter, according to Avison Young’s quarterly office market report. Available space shrank by 10.2 million square feet.

New Lincoln Yards developers pitch 1,000-unit plan, JP Morgan balks on selling southern parcel

Jim Letchinger’s plan to rescue the failed $6 billion Lincoln Yards development now comes with a catch. His firm JDL and equity partner, Los Angeles-based Kayne Anderson, are moving forward with purchasing the site’s 31-acre northern parcel on the western edge of Lincoln Park along the Chicago River’s North Branch.

A win for holdouts: Appeals court sides with Biscayne 21 condo owners in battle with Two Roads tied to redevelopment

Two Roads Development was dealt a major blow in its legal fight over a condo buyout in Miami’s Edgewater, where the company plans an Edition Residences luxury condo project. The Third District Court of Appeal issued an opinion in response to Two Roads’ request for a rehearing, siding with the eight holdout unit owners who have been fighting the buyout of their condo building, Biscayne 21, for years.

A new lender has stepped in at an East Harlem office building, Brandon Miller’s last project developed before his death. Raven Capital Management bought the loan secured by 2226 Third Avenue from Related Companies.

Pasadena Office Tower loses 60% of value over 10 years
A new appraisal slashed the value of Albert Taban and Michael Pashaie’s Pasadena Office Tower by more than half as tenants flee the property. The nine-story tower was reappraised at $23 million, a 59 percent decrease from its appraisal a decade ago, according to Morningstar Credit. The new appraisal is worth about $20 million less than the loan on the property.