Developer Charles Cohen Seeks More Time to Repay $187M Debt

Developer Charles Cohen wants a New York court to give him additional time to resolve a $187 million personal debt owed to Fortress Investment Group, arguing that he has made progress toward repayment and is actively pursuing further asset sales.

Cohen said he has worked “tirelessly” over the past 18 months to reduce the obligation, including selling two New York buildings to Vornado Realty Trust and using $52 million of the proceeds to pay Fortress, according to a Jan. 13 affidavit reported by Crain’s New York. He contends that despite what he characterizes as excessive litigation from Fortress’ attorneys, his team has delivered “exceptional” results under difficult conditions.

“What I need is more time to continue doing the right thing,” he said in the affidavit.

Fortress, however, says its patience has run out. The private equity firm, which manages roughly $50 billion in assets, is asking the court to appoint a receiver to sell portions of Cohen’s 12 million‑square‑foot portfolio to satisfy the debt. Fortress has also accused Cohen of improperly transferring his Connecticut estate and 220‑foot yacht to his wife to shield them from creditors — allegations Cohen denies.

In its Jan. 14 response, Fortress argued that Cohen “cannot be trusted” to oversee the sales process.

Cohen, who has spent nearly five decades at the family‑run Cohen Brothers, controls major Midtown properties including 805 Third Avenue, 3 Park Avenue and 750 Lexington Avenue. He recently sold 623 Fifth Avenue and 3 East 54th Street to Vornado at distressed pricing and says Vornado chairman Steven Roth is exploring additional acquisitions or joint ventures.

Cohen claimed in the affidavit that he was in talks to sell a White Plains office building and plans to market 622 Third Avenue, a 1 million‑square‑foot tower near Grand Central.

One asset Cohen insists must remain untouched is the Pacific Design Center in West Hollywood, a 1.6 million‑square‑foot complex he calls essential to the stability of his entire portfolio. Selling it, he argues, would “jeopardize” operations and lead to the “collapse” of his business.

Appointing a receiver would trigger loan defaults across his holdings, Cohen claimed, forcing banks to demand repayment ahead of Fortress and potentially leaving the firm “wiped out.”

Fortress disputes this, saying receivership would not trigger default at the Pacific Design Center and that the property’s high value could allow Fortress to be repaid more efficiently than through New York asset sales.

– Joel Russell