A New York State Supreme Court judge has started the clock on Midtown landlord Charles Cohen, giving him 45 days to come up with $135 million or risk seeing his office buildings sold off under court supervision. The order empowers a court-appointed receiver to market and sell properties if Cohen cannot pay what the court says he owes, the latest dramatic turn in a years-long fight between Cohen and Fortress Investment Group over defaults and personal guarantees tied to his Midtown portfolio.
The judge tapped Fortress Investment Group executive David Moson as receiver and directed Cohen to turn over operating and financial information on his buildings, plus updates on any ongoing sale talks. If Cohen cannot raise the money within the 45-day window, Moson will be authorized to sell properties to satisfy the judgment, according to Crain's New York Business.
Where the debt began
The judge’s deadline traces back to a 2024 default that left Cohen on the hook for a roughly $187 million personal guaranty on loans tied to his properties. Cohen controls about 12 million square feet of mostly older Midtown office space and has been scrambling to free up cash by marketing several towers, The Real Deal reported.
Sales so far and why lenders are frustrated
Cohen has already sold off pieces of the portfolio, including 3 East 54th Street and the office portion of 623 Fifth Avenue, but the proceeds have fallen well short of what Fortress says it is owed. Those discounted deals have only fueled the lender’s push for a receivership, as reported by Bisnow.
Legal stakes for Cohen
In court filings, Fortress has accused Cohen of shifting his Connecticut residence and a 220-foot yacht into his wife’s name to shield assets from creditors, allegations Cohen denies. The court order also requires him to hand over detailed operating and financial data on each property to the receiver, according to Crain's New York Business.
What comes next
Cohen now has a tight window to close sales, secure refinancing or convince the court to give him more time before Moson is cleared to start actively marketing and selling assets. Among the properties in play is 622 Third Avenue, a roughly 1 million-square-foot tower near Grand Central that carries about $400 million in mortgage debt and has been shopped to potential buyers, The Real Deal reported.
Court filings signal there could be more hearings and disclosures ahead as Fortress pushes to collect and Cohen continues trying to monetize buildings. A spokesperson for Fortress declined to comment, and a representative for Cohen Brothers did not immediately respond to requests for comment, according to Bisnow.
