Clock Ticking on Charles Cohen Property Sales

A judge put developer Charles Cohen on the clock to make good on his debt to Fortress Investment Group or have an executive for the lender do it for him.

A New York state Supreme Court judge gave the embattled landlord 45 days to sell the necessary properties to settle his debt with his lender, Crain’s reported. The judge also appointed Fortress’s head of real estate asset management, David Moson, as receiver for Cohen’s portfolio.

Cohen is required to hand over operating and financial information about his portfolio and provide updates about possible property sales. Should Cohen fail in his 45-day task, Moson will be able to step in and start selling Cohen’s properties until the debt is resolved.

Fortress declined to comment to the publication, while an attorney for Cohen did not respond to a request for comment.

In January, Cohen pleaded for additional time to resolve the $187 million personal debt owed to Fortress, arguing that he had been working “tirelessly” to meet his obligations. The sales of 623 Fifth Avenue and 3 East 54th Street reduce his debt, but Cohen still owes at least $135 million.

Cohen claimed in an affidavit that he was in talks to sell a White Plains office building and planned to market 622 Third Avenue, a 1 million‑square‑foot tower near Grand Central that he has valued at $700 million. There’s been no outward progress on either front.

At the time of the affidavit, Fortress asked the court to appoint a receiver to sell portions of Cohen’s 12 million‑square‑foot portfolio to satisfy the debt. Midtown properties including 805 Third Avenue, 3 Park Avenue and 750 Lexington Avenue were also in Cohen’s control, though the latter was returned to the lender in January after an auction that drew no other bids.

Fortress also accused Cohen of improperly transferring his Connecticut estate and 220‑foot yacht to his wife to shield them from creditors, allegations the developer denies.

— Holden Walter-Warner