Latest news with #CohenRealtyEnterprises
Yahoo
3 days ago
- Business
- Yahoo
NYC Billionaire Charles Cohen being sued over bad $535M loan — how to build real estate wealth without drowning in debt
Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. New York City real estate tycoon Charles Cohen has lived a life most people only dream of — complete with exotic cars, lavish mansions and fancy yachts. Now, some of his prized possessions are under threat as a massive business loan gone bad starts to have very personal consequences. Cohen, 73, is being sued by Fortress Investment Group over a $535 million loan extended in 2022 to his firm, Cohen Realty Enterprises. The collateral included a Manhattan office tower, the Le Meridien Dania Beach hotel in Fort Lauderdale, Florida, and four other properties, according to The Wall Street Journal, citing records from New York State's Supreme Court. But that's not all: Cohen personally guaranteed $187.2 million of that loan. His net worth is nearly $2 billion, according to a financial statement filed with the court. His business defaulted last year, and Fortress has since seized much of the collateral. Still, the firm claims those assets fall far short of what Cohen owes, reports The Journal. That shortfall has led Fortress — an investment giant partially owned by Abu Dhabi's Mubadala Capital — to go after Cohen's personal wealth. And that's exactly what it's doing. Fortress is seeking to confiscate Cohen's homes in Provence, France, and Greenwich, Connecticut, reports The Journal, along with his fleet of 25 luxury cars and five yachts — including a 220-foot superyacht that's presently docked at an Italian port under court order. Don't miss Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) You don't have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here's how Following a French court order, debt collectors have already seized hundreds of thousands of dollars' worth of Cohen's belongings from his 138-acre estate and vineyard in Provence, according to The Journal. The haul apparently included high-end furniture, valuable artworks and a fine wine collection. 'They keep pecking at us, like a bird would peck at something,' Cohen said of Fortress in a February deposition, per The Journal. 'Enough was never enough.' A blunt reality check Real estate has long been one of the most powerful tools for building wealth — and for good reason. It has the potential to generate steady rental income, appreciate over time and offer valuable tax advantages. But as Cohen's case shows, that success isn't guaranteed — especially when there's large amounts of debt involved. Leverage is a common part of real estate investing, even for everyday investors. With home prices sky-high, most people need to take out a mortgage to buy an income property. And with interest rates elevated, borrowing has become more expensive — assuming you can even save enough for a down payment. The good news? You no longer need to take on traditional debt to get started in real estate. Becoming a real estate mogul — starting with $100 Crowdfunding platforms like Arrived have made it easier than ever for everyday investors to gain exposure to America's real estate market. Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants. The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you'd like to purchase, and then sit back as you start receiving any positive rental income distributions from your investment. Read more: Rich, young Americans are ditching the stormy stock market — A $35-trillion opportunity Rising home prices have helped Americans build substantial wealth through homeownership — but for years, the $35-trillion U.S. home equity market was an exclusive playground for big institutions. Homeshares is changing the game by allowing accredited investors to gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning, or managing property. With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets. Be the landlord of Walmart If you've ever been a landlord, you know how important it is to have reliable tenants. How do grocery stores sound? That's where First National Realty Partners (FNRP) comes in. The platform allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord. With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns. Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties. What to read next Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here's how Car insurance in America now costs a stunning $2,329/year on average — but here's how 2 minutes can save you more than $600 in 2025 Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. 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New York Post
21-07-2025
- Business
- New York Post
Billionaire Charles Cohen faces confiscation of wine, mansions, superyachts and Ferraris over loan defaults
Billionaire Charles Cohen faces losing his fine wines, artworks, mansions, superyachts and Ferraris as he scrambles to sell properties so he can pay back loans that went bad on soured real estate deals, according to 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 office tower, the Le Méridien Dania Beach hotel in Fort Lauderdale, Fla., and four other properties, according to records from New York State Supreme Court. 5 Billionaire real estate mogul Charles Cohen in 2015. Los Angeles Times via Getty Images But Cohen, who has a nearly $2 billion net worth, also personally guaranteed $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 government fund Mubadala Capital, to go after him personally when his business defaulted last year. Fortress took control of most of his collateral, but said the value still falls short of what Cohen owes. So the firm has launched legal efforts to seize Cohen's mega-mansions in France's Provence region and Greenwich, Conn., according to New York court records. Fortress has also set its sights on Cohen's 25 luxury vehicles, including two Ferraris, and a 220-foot yacht worth nearly $50 million, which was blocked from leaving an Italian port earlier this month. The firm has already seized hundreds of thousands of dollars worth of art, decor and fine wines from the Château de Chausse – Cohen's 138-acre home and vineyard in Provence. Lawyers for Cohen declined to comment. 5 Charles Cohen's Château de Chausse in Provence. Google Maps It wouldn't be the first time personal guarantees have sunk a businessman – famously landing Donald Trump near bankruptcy in the 1990s. Fortress has argued that Cohen is blocking the firm from enforcing the guarantees by transferring ownership of assets to his family members, according to court records. The real estate king moved ownership of the yacht stuck in the Port of Loano under his wife's name last year, according to these records. Cohen argued these transfers were done for estate and tax-planning purposes. A French court ruled in his favor in the case of the Provence château. 5 Charles Cohen and wife Clodagh 'Clo' Margaret Warner Bros. 'They [Fortress] keep pecking at us, like a bird would peck at something,' Cohen said during a February deposition. 'Enough was never enough.' Cohen's firm is countersuing Fortress. The billionaire said he has used personal guarantees before and has never had this kind of problem. His attorneys have argued that Fortress' actions – like putting restraints on Cohen's brokerage accounts and on accounts held by his mother and sister – amount to harassment. 5 Le Méridien Dania Beach hotel in Fort Lauderdale. Google Maps Cohen cannot withdraw money from his personal accounts without Fortress' approval. Fortress has argued that it subpoenaed Cohen's family members because he transferred personal assets to them. 'Fortress is left with no choice but to begin enforcing its judgment against Cohen's assets,' the firm said, according to court records, noting a duty to investors. Fortress and Cohen's partnership was nothing new. The investment giant had financed many of Cohen's real-estate deals in the years before the pandemic. 5 Charles Cohen playing mini golf at an event in 2007. Patrick McMullan via Getty Images But Cohen's portfolio suffered in 2020 as demand for office space and movie theaters – which make up a significant chunk of his properties – plunged. As other building owners gave properties back to lenders, Cohen held on and agreed to a restructuring plan with Fortress, which included the personal guarantees. But the market remained in a stubborn slump, forcing the pair to modify the 2022 loan four times before Cohen's business defaulted in March 2024. Cohen said he had a handshake deal with Fortress for another extension, but the firm denied this and the state supreme court and appellate court ruled in 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 court ruled. Cohen said he is now rushing to sell properties so he can raise cash for Fortress.
Daily Mail
21-07-2025
- Business
- Daily Mail
Billionaire tycoon Charles Cohen faces losing mansions, yachts and 25 supercars in embarrassing debt drama
A billionaire New York City real estate tycoon faces losing his fleet of mansions, yachts and supercars after his business defaulted on huge loans. Charles Cohen, 73, has seen authorities in France seize high-value artworks, luxury decor and his prized collection of fine wines, with his assets in the US now under the same threat. Cohen, who boasts a net worth of almost $2 billion, is being sued by Fortress Investment Group over a $535 million loan it made to his property firm, Cohen Realty Enterprises, in 2022. As collateral on the loan, Cohen listed his office tower on Manhattan's Lexington Avenue, the Le Méridien Dania Beach hotel in Fort Lauderdale, Florida, and four other properties, according to court records reported by the Wall Street Journal. But Cohen also personally guaranteed $187.2 million of the loan, which has allowed Fortress to now go after the billionaire's array of luxury assets. Cohen's business defaulted last year, but Fortress said that the value of his collateral did not meet his debts, and court records cited by the Journal showed he is at risk of losing his homes in New York, Connecticut, and Provence, France. Fortress is also reportedly going after his 25 luxury supercars, which includes two Ferraris, and five yachts. Cohen is facing allegations that he transferred ownership of his assets to family members in an attempt to avoid paying his mounting debts, which he denied. Once one of the most powerful real estate moguls in Manhattan, Cohen saw his fortunes sour in the pandemic. Lockdowns sent demand for office spaces through the floor, and Cohen's string of movie theatres that he owns were upended as people could no longer go to see blockbusters in person. Cohen notably won an Oscar in 2017 as his production company, Cohen Media Group, distributed The Salesman, which won best foreign-language film. As many property tycoons gave up their skyscrapers and office buildings to lenders, Cohen kept hold of many as he said he felt personally attached to them as they had been in his family for decades, ever since his father and two uncles started their property empire that Cohen would later take over. This led him to reach a restructuring plan with Fortress that included the personal guarantee of almost $200 million, a decision that has now landed scrutiny on his lavish assets. Cohen has launched a countersuit against Fortress, beginning a battle with the investment group in what the Journal described as 'one of the nastiest in commercial real estate for many years.' Earlier this month, a judge in Italy ruled that one of Cohen's yachts, a 220-foot, $49.6 million vessel, couldn't leave the Port of Loano without approval from the court. The yacht is one of five of Cohen's boats that Fortress is trying to seize, but court records reportedly showed that he transferred ownership to his wife, Clo Jacobs, last year. Jacobs worked as the public relations and marketing director of the American division of luxury designer Jimmy Choo, according to a New York Times report on their wedding in 2004. According to Fortress, he also did the same with his $20 million mansion in Greenwich, Connecticut, and the Château de Chausse estate in France. Late last year, French authorities raided the Château de Chausse, a sprawling 138-acre mansion with a vineyard in France's Provence region. Under orders from a French court, debt collectors seized hundreds of thousands of dollars' worth of Cohen's personal belongings including his prized fine wine collection on behalf of Fortress. After being accused of trying to avoid this fate by transferring ownership to his wife, Cohen denied these claims and said they were legitimate moves for tax-planning purposes. He told the Journal that he is in the process of selling some of his vast array of properties to pay his debts to Fortress, but needs more time to complete the deals. In a deposition in February, he reportedly complained to the court about Fortress' attempts to seize his assets, saying they 'keep pecking at us, like a bird would peck at something... Enough was never enough.' Cohen also listed the Le Méridien Dania Beach hotel in Fort Lauderdale, Florida, (pictured) and four other properties Christopher Caffarone, Cohen's attorney, says that Fortress' aggressive actions have seen the billionaire unable to withdraw money from his personal accounts without approval from Fortress, alongside restrictions to brokerage accounts held by Cohen, his mother and his sister. 'His family's lives are being disrupted,' Caffarone said earlier this year at a court hearing. 'They are getting subpoenaed. They are getting deposed.' Fortress argued that it is going after Cohen's family members because he transferred personal assets to them, and said in court records that it 'is left with no choice but to begin enforcing its judgment against Cohen's assets.' With his vast empire now at risk, Cohen says he is not afraid of losing his reputation as one of the property world's big hitters. 'I've always been good at hanging on,' he told the Journal. 'That's what we've always done, and we will continue to do that.'
Mint
21-07-2025
- Business
- Mint
A real-estate tycoon's loan went bad. Then they came for his Ferraris and fine wine
In France's Provence region late last year, a group of men entered Château de Chausse, the 138-acre home and vineyard of Charles Cohen. While the New York real-estate tycoon was away, the men scoured the palatial house, taking high-priced artworks, furniture and Cohen's collection of fine wines. They weren't thieves. The men were following orders of the French court, and they seized hundreds of thousands of dollars of Cohen's personal belongings in the château on behalf of Fortress Investment Group. Fortress says it was simply taking what it is owed. In 2022, the New York-based investment firm made a $535 million loan to Cohen Realty Enterprises as a way to consolidate his previous debt. Cohen's collateral included a Manhattan office tower, the Le Méridien Dania Beach hotel in Fort Lauderdale, Fla., and four other properties, according to records from New York State Supreme Court, where Fortress is suing Cohen. But crucially, Cohen also personally guaranteed $187.2 million of that loan. That 'recourse" portion of the debt gave Fortress additional powers to go after Cohen personally if his business defaulted. Now, that's what's happening. Cohen's business defaulted last year, and Fortress took control of most of the collateral. But the firm said that the value of those properties falls far short of what Cohen owes. Now the lender is trying to confiscate Cohen's personal possessions. Fortress launched legal efforts to seize Cohen's houses in Provence and Greenwich, Conn., according to New York court records. Fortress is also going after his 25 luxury automobiles including two Ferraris and other valuable belongings. Earlier this month, an Italian judge ruled that a 220-foot yacht couldn't leave the Port of Loano without court approval. The superyacht, valued at $49.6 million, is one of five yachts that Fortress is trying to seize from the real-estate mogul. Cohen transferred ownership of the yacht in Port of Loano to his wife last year, court records show. Each side accuses the other of impropriety. Fortress says Cohen improperly blocked the firm's enforcement of his guarantee by transferring his yachts and other valuable assets—including his $20 million Greenwich home and Château de Chausse—to family members, according to court records. Cohen's net worth is nearly $2 billion, according to a financial statement that he filed with the court. He said the transfers were legitimate and made for estate and tax-planning purposes. A French court ruled in his favor on the Provence château. In an interview with The Wall Street Journal, Cohen said he is in the process of selling some properties to pay Fortress but needs more time to complete complicated deals. 'They keep pecking at us, like a bird would peck at something," he said in a February deposition about his negotiations with Fortress. 'Enough was never enough." Personal-recourse debt has a long, bruising history in commercial real estate. Developers often turn to personal guarantees because they would have no other way to obtain enough financing, and because they are convinced they can easily pay back their loans. 'They think if you hold on to a property long enough, the values are always going to justify the loan," said Mark Edelstein, chair of Morrison Foerster's global real-estate group. Donald Trump famously used recourse loans to build his property empire in the 1980s, only to find himself on the brink of personal bankruptcy in the early 1990s because of these personal guarantees. Trump said during a TV appearance that in 1991 he pointed to a homeless person and said he 'is worth $900 million more than I am." Personal guarantees were also a big reason why New York developer Harry Macklowe faced near financial ruin during the 2008-09 financial crisis, after he took out a $1.2 billion bridge-equity loan from a group including Fortress with recourse contingencies. Macklowe said that the situation was resolved and is now 'old history." Cohen has used personal guarantees before, but said he has never had this kind of problem. His business is countersuing Fortress. His dust-up with the investment firm is one of the nastiest in commercial real estate for many years. Attorneys for Cohen say that Fortress's actions amount to improper harassment. The investment firm has put restraints on Cohen's personal brokerage accounts, and on brokerage accounts held by his mother and sister. Cohen cannot withdraw money from his personal accounts without Fortress's approval. 'His family's lives are being disrupted," said Christopher Caffarone, Cohen's attorney, at a court hearing in May. 'They are getting subpoenaed. They are getting deposed." Fortress subpoenaed Cohen's family members because he transferred personal assets to them and because they are involved in running or financing his companies, a Fortress spokesman said. Fortress, an investment giant owned in part by Abu Dhabi government fund Mubadala Capital, said that it has a duty to its investors that include retirement and pension funds. 'Fortress is left with no choice but to begin enforcing its judgment against Cohen's assets," the firm said, according to court records. Charles's father and his two uncles went from selling cars to building what would become a real-estate empire, developing towers on Manhattan's Third Avenue as the old elevated railway was dismantled. Charles became president of the company in 1983 and more than tripled it in size to 12 million square feet. Nowadays, Cohen, 73 years old, is a widely recognizable figure in New York real-estate circles, where he is known for his tailored suits and reflective stainless-steel glasses. He also has invested tens of millions of dollars in filmmaking. Cohen's production firm has distributed more than 100 films including 'The Salesman," which won the Academy Award for best foreign language film in 2017. Cohen also purchased movie theaters in Europe and the U.S. Fortress and Cohen's business relationship goes back decades. The investment giant has lent hundreds of millions of dollars to Cohen, and it financed many of his real-estate deals in the years leading up to the pandemic. Then during Covid-19, demand for office space plummeted. People also stopped going to the movies, upending Cohen's movie-theater holdings. Other office-building owners at the time were conceding defeat, giving properties back to lenders. Cohen said he felt the market would rebound soon. He also felt emotionally attached to the properties, some which had been in his family for decades. The two sides agreed on a restructuring plan, which included the personal guarantee. But the market didn't rebound quickly. The two sides modified the 2022 loan four times but the properties weren't able to generate enough cash to pay the debt service. In March 2024, Cohen's business defaulted. Cohen said that he had a handshake agreement with Fortress for another extension, according to court records. But the firm said there was no such deal, and the state supreme court ruled for Fortress. Cohen says now he is selling properties to raise cash to meet his obligations to Fortress. 'I've always been good at hanging on," Cohen said. 'That's what we've always done and we will continue to do that."
