Charles Cohen Continues Mad Dash for Cash With Land Sales

Charles Cohen is running out of time to satisfy his debt to Fortress Credit, giving opportunistic buyers a chance to purchase his assets.

This week, Tony Malkin’s Empire State Realty Trust purchased the ground beneath two Midtown assets from Cohen for a combined $110 million, Bisnow reported. The real estate investment trust leased the buildings at both sites and will rip up deals that had at least 30 years left on each.

The properties at 111 West 33rd Street and 1400 Broadway were transferred to an affiliate of Cohen Brothers Realty Corp. two decades ago. The latter of the two saw a big lease earlier this year when Burlington Stores signed a 206,000-square-foot extension and expansion at the Midtown South property.

Cohen Brothers did respond to the publication’s request for comment.

The land sales come as Cohen continues to deal with a compounding issue of distress and legal jeopardy.

Earlier this year, Cohen lost the firm’s headquarters at nearby 750 Lexington Ave in a foreclosure auction with the tower going back to the lender.

Cohen is being hounded by Fortress Credit: the lender scored a $187 million personal judgment against Cohen last year and has been pushing to collect. The two sides recently extended a deadline for a sale expected by Cohen to satisfy the remainder of his debt to June 19 after Cohen agreed to cover $12 million in legal fees.

Since the judgment was issued, Cohen sold 623 Fifth Avenue for $218 million and 3 East 54th Street for $141 million, but the deals with Vornado Realty Trust generated $52 million in proceeds, meaning Cohen still needs to come up with $135 million.

Meanwhile, it’s been a busy time for Malkin and ESRT. In addition to the two land acquisitions, the company announced the sale of 250 West 57th Street for $275 million, falling short of the asking price. Namdar Realty Group was the buyer.

— Holden Walter-Warner