Billionaire Charles Cohen could lose mansions, – Business News
Billionaire Charles Cohen faces dropping his fantastic wines, artworks, mansions, superyachts and Ferraris as he scrambles to sell properties so he pays back loans that went unhealthy on soured real estate offers, in accordance with a report.
Cohen, 73, is being sued by Fortress Investment Group over a $535 million loan it made to his property firm, Cohen Realty Enterprises, in 2022.
His collateral included a Manhattan workplace tower, the Le Méridien Dania Beach lodge in Fort Lauderdale, Fla., and 4 different properties, in accordance with information from New York State Supreme Court.
Billionaire real estate mogul Charles Cohen in 2015. Los Angeles Times by way of Getty Images
But Cohen, who has a practically $2 billion internet value, additionally personally assured $187.2 million of that loan, the Wall Street Journal earlier reported.
That opened the door for Fortress, an investment giant partially owned by Abu Dhabi authorities fund Mubadala Capital, to go after him personally when his business defaulted final yr.
Fortress took control of most of his collateral, however mentioned the worth nonetheless falls short of what Cohen owes.
So the firm has launched legal efforts to grab Cohen’s mega-mansions in France’s Provence area and Greenwich, Conn., in accordance with New York courtroom information.
Fortress has additionally set its sights on Cohen’s 25 luxurious automobiles, together with two Ferraris, and a 220-foot yacht value practically $50 million, which was blocked from leaving an Italian port earlier this month.
The firm has already seized a whole lot of 1000’s of {dollars} value of artwork, decor and fantastic wines from the Château de Chausse – Cohen’s 138-acre home and winery in Provence.
Lawyers for Cohen declined to remark.
Charles Cohen’s Château de Chausse in Provence. Google Maps
It wouldn’t be the primary time personal ensures have sunk a businessman – famously touchdown Donald Trump close to chapter within the Nineteen Nineties.
Fortress has argued that Cohen is obstructing the firm from imposing the ensures by transferring possession of property to his relations, in accordance with courtroom information.
The real estate king moved possession of the yacht caught within the Port of Loano below his spouse’s identify final yr, in accordance with these information.
Cohen argued these transfers have been finished for property and tax-planning functions. A French courtroom ruled in his favor within the case of the Provence château.
Charles Cohen and spouse Clodagh “Clo” Margaret Jacobs. Gareth Cattermole/Getty Images for Warner Bros.
“They [Fortress] keep pecking at us, like a bird would peck at something,” Cohen mentioned during a February deposition. “Enough was never enough.”
Cohen’s firm is countersuing Fortress.
The billionaire mentioned he has used personal ensures earlier than and has by no means had this sort of drawback.
His attorneys have argued that Fortress’ actions – like placing restraints on Cohen’s brokerage accounts and on accounts held by his mom and sister – quantity to harassment.
Le Méridien Dania Beach lodge in Fort Lauderdale. Google Maps
Cohen can’t withdraw money from his personal accounts with out Fortress’ approval.
Fortress has argued that it subpoenaed Cohen’s relations as a result of he transferred personal property to them.
“Fortress is left with no choice but to begin enforcing its judgment against Cohen’s assets,” the firm mentioned, in accordance with courtroom information, noting a responsibility to buyers.
Fortress and Cohen’s partnership was nothing new. The investment giant had financed many of Cohen’s real-estate offers within the years earlier than the pandemic.
Charles Cohen enjoying mini golf at an occasion in 2007. Patrick McMullan by way of Getty Images
But Cohen’s portfolio suffered in 2020 as demand for workplace space and film theaters – which make up a important chunk of his properties – plunged.
As different building house owners gave properties back to lenders, Cohen held on and agreed to a restructuring plan with Fortress, which included the personal ensures.
But the market remained in a cussed stoop, forcing the pair to switch the 2022 loan 4 instances earlier than Cohen’s business defaulted in March 2024.
Cohen mentioned he had a handshake deal with Fortress for one more extension, however the firm denied this and the state supreme courtroom and appellate courtroom ruled within the investment group’s favor.
“Defendant’s statements that the parties understood that the December emails were a binding agreement…were self-serving and unsubstantiated,” the appellate courtroom ruled.
Cohen mentioned he’s now speeding to sell properties so he can raise money for Fortress.
