The Struggle of a Real Estate Tycoon
A prominent real estate magnate from New York City, Charles Cohen, is facing the potential loss of his luxurious properties, including multiple mansions, yachts, and high-end supercars. This situation has arisen due to his business failing to meet significant loan obligations. At 73 years old, Cohen, who boasts an estimated net worth of nearly $2 billion, has found himself in a legal battle with Fortress Investment Group over a $535 million loan provided to his property company, Cohen Realty Enterprises, in 2022.
The collateral for this loan included several high-value properties such as an office tower on Manhattan’s Lexington Avenue, the Le Méridien Dania Beach hotel in Fort Lauderdale, Florida, and four other properties. Additionally, Cohen personally guaranteed $187.2 million of the loan, which has allowed Fortress to pursue his personal luxury assets.
Cohen’s business defaulted last year, and according to court records, the value of his collateral did not cover his debts. This has put his homes in New York, Connecticut, and Provence, France, at risk. Fortress is also reportedly targeting his collection of 25 luxury supercars, which includes two Ferraris, and five yachts.
Cohen is accused of transferring ownership of his assets to family members to avoid paying his debts, a claim he denies. He has faced allegations that he attempted to evade his financial obligations by moving his possessions to relatives, which he insists was for legitimate tax planning purposes.
Once a leading figure in Manhattan’s real estate scene, Cohen’s fortunes declined during the pandemic. Lockdowns drastically reduced demand for office spaces, and his movie theatres were significantly impacted as people could no longer attend screenings in person. Despite these challenges, Cohen maintained a strong presence in the industry, holding onto many properties due to his emotional connection to them, which had been part of his family for generations.
This decision led him to enter into a restructuring plan with Fortress that involved a personal guarantee of almost $200 million. However, this move has drawn scrutiny regarding his lavish lifestyle and assets. Cohen has initiated a countersuit against Fortress, sparking what the Wall Street Journal described as one of the most contentious battles in commercial real estate in recent years.
In early April, a judge in Italy ruled that one of Cohen’s yachts, a 220-foot vessel valued at $49.6 million, could not leave the Port of Loano without court approval. This yacht is among five that Fortress is attempting to seize, but court records indicate that Cohen transferred ownership to his wife, Clo Jacobs, last year. Jacobs previously worked as the public relations and marketing director of the American division of luxury designer Jimmy Choo.
Fortress claims that Cohen also transferred ownership of his $20 million mansion in Greenwich, Connecticut, and the Château de Chausse estate in France. French authorities recently raided the Château de Chausse, seizing hundreds of thousands of dollars’ worth of personal items, including Cohen’s prized fine wine collection, on behalf of Fortress.
Cohen has denied these allegations, stating that the transfers were for tax-planning purposes. He mentioned that he is currently selling some of his properties to pay off his debts to Fortress but requires more time to finalize the deals. In a deposition in February, he expressed frustration with Fortress’ efforts to seize his assets, comparing their actions to a bird pecking at something.
Christopher Caffarone, Cohen’s attorney, has highlighted the impact of Fortress’ aggressive tactics on Cohen’s family, noting that they are being subpoenaed and deposed. Fortress argues that it is targeting Cohen’s family members because he transferred personal assets to them, asserting that it has no choice but to enforce its judgment against Cohen’s assets.
Despite the challenges, Cohen remains undeterred. He told the Journal, “I’ve always been good at hanging on. That’s what we’ve always done, and we will continue to do that.” As his vast empire faces potential losses, Cohen continues to fight for his legacy in the real estate world.
