New York billionaire Charles Cohen took over his family’s real estate firm from from his dad and uncles, and kept expanding. Now he’s battling multiple foreclosures and working on a plan to save his fortune.
Read the full story on Forbes: https://www.forbes.com/sites/giacomotognini/2025/01/22/inside-a-real-estate-billionaires-fight-to-revive-his-aging-empire/
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LifestyleTranscript
00:00Today on Forbes, inside a real estate billionaire's fight to revive his aging empire.
00:07On January 15th, real estate billionaire Charles Cohen called Forbes from a no-caller ID phone,
00:13as he always does.
00:15For four months, Forbes had been trying to get Cohen to sit down and discuss the mounting
00:19debt and vacancies at the buildings owned by his real estate firm, Cohen Brothers Realty.
00:25In September, he said to check back in November.
00:27In November, he said to call in January.
00:30A couple of weeks ago, Cohen said he was going on vacation.
00:33He didn't specify where, but he often jets to his vineyard in the south of France, Chateau
00:38du Chausse, or his Palm Beach penthouse.
00:41He also has apartments in West Hollywood and Manhattan, and a sprawling home in Greenwich,
00:46Connecticut.
00:47Then Cohen asked if the story could be delayed once again for four to six weeks, when he
00:51would explain how his firm had, quote, turned the corner.
00:55He mentioned several refinancings and new leases he claimed were in the works, and said,
01:00quote,
01:01If you run a negative story, it's going to hurt me.
01:03It makes it harder for us to rent when people think there's a problem that really isn't
01:07a problem.
01:09Cohen finally relented, only after Forbes explained the story would run regardless,
01:14and had his executive vice president sit down with Forbes to go over financials.
01:19There is no doubt that Cohen, who took over his father and uncle's firm in the 1980s,
01:24and expanded it by building and buying prime office towers in midtown Manhattan, now finds
01:29himself in a tricky spot.
01:31Since the pandemic emptied offices, many of his prized properties lost tenants.
01:36At least six of his buildings sit more than 20 percent empty, with three of those less
01:41than 60 percent occupied.
01:43At the same time, he struggled to make payments on at least $1.1 billion in debt, according
01:49to loan filings and court documents, resulting in the loss of four properties at a foreclosure
01:54auction in November.
01:56All of that has dealt a blow to Cohen and his fortune, which peaked at $3.7 billion
02:01in 2022, when he was flush with cash and interest rates were near zero.
02:07Forbes now estimates he's worth $1.6 billion.
02:11About two-thirds of that lies in his real estate holdings, which have lost value as
02:14tenants fled to newer, amenity-rich skyscrapers.
02:19Cohen disputes the valuation, claiming it should be higher.
02:22Stephen Cherniak, Cohen brothers' chief operating officer, said that the firm is up-to-date
02:27on loan payments for buildings that carry more than half that $1.1 billion debt load.
02:33Plus, Cherniak is confident the properties will land more tenants in the first half of
02:37this year.
02:39Cohen's troubles made headlines on November 8th, when one of the largest foreclosure auctions
02:43in New York history took place.
02:45Up for sale were five of his holdings, an 800,000-square-foot office and design complex
02:51in Dania Beach, Florida, a nearby Le Meridien hotel, a former hotel site in Ryebrook, New
02:56York, and theater chains in the U.S. and the U.K.
03:01At the end of the bidding process, Cohen's creditor, Fortress Investment Group, walked
03:05away with nearly everything, paying just under $150 million for the design complex, hotel,
03:11U.K. theater chain, and Ryebrook site.
03:15In the past two years, Cohen has had to deal with mounting troubles at his office towers.
03:19He lost several major tenants, including WeWork, which vacated more than 200,000 square
03:25feet at several properties while keeping much less space.
03:29And debts racked up as repayment dates loomed.
03:32His buildings struggled to compete with brand-new skyscrapers with luxury amenities, making
03:36it tougher to replace those leases, according to several brokers.
03:41High interest rates also made it harder to refinance, and when he did, it was on unfavorable
03:46terms.
03:47At the same time, the rest of his empire also took a hit.
03:51The pandemic shuttered his theaters across the country, and his design centers lost tenants,
03:56too.
03:57He lost the one in Florida to Fortress, but has three more, including two in Los Angeles
04:01and New York, where occupancy has dipped below 80 percent.
04:06For his part, Cohen insists the picture isn't as bad as it looks, pointing to better leasing
04:11activity and a recent uptick in sales of office buildings.
04:15For full coverage, check out Giacomo Tognini's piece on Forbes.com.
04:21This is Kieran Meadows from Forbes.
04:24Thanks for tuning in.