It seems billionaire Charles Cohen can’t catch a break.
U.S. Bank has filed to foreclose on 222 East 59th Street, part of Cohen Brothers Realty’s holdings. The lender says the borrower defaulted in September and has failed to pay its bills. The Cohen Brothers affiliate took out $7.5 million connected to the property in 2015, according to the complaint.
Although the building on East 59th Street is among his smaller properties, it’s the latest thorn in Cohen’s side. The billionaire has been fighting and sometimes losing foreclosure battles, personally owing Fortress Credit $187 million.
The property is a 5-story, 45,000 square-foot low-rise office building, according to tax records. Cohen Brothers developed the building in 2001. The East 59th Street building is technically separate, but considered part of the Decoration & Design building, home to more than 100 showrooms and open only to trade professionals, according to its website.
According to David López, general counsel of Cohen Brothers Realty, the suit is related to a maturity default. The loan term expired October 2025, he said.
López blamed the default on high ground rent for the property.
“After two (2) years of active negotiations, the ground lessor reneged on a deal to modify the ground lease in keeping with today’s values of similarly situated buildings,” López said via email. The failure of negotiations prevented Cohen Brothers from refinancing the current debt, he said.
“It’s a shame.”
Charles Cohen is named as a defendant because he served as a guarantor on the loan. However, the lender is not seeking relief from Cohen personally.
Earlier this year, Cohen lost the firm’s headquarters at nearby 750 Lexington Ave in a foreclosure auction. The tower went back to the lender.
Cohen is simultaneously being hounded by Fortress Credit. The lender scored a $187 million personal judgement against Cohen last year and has been pushing to collect. Cohen sold both 623 Fifth Avenue and 3 East 54th Street to Vornado Realty Trust for $218 million and $141 million, respectively, using some of the proceeds to pay off his debt.
Forbes estimates Cohen has remained a billionaire but had lost about $2.1 billion of his net worth between 2023 and 2025.
Read more
Charles Cohen’s 750 Lex auctioned off, returns to lender
Charles Cohen’s last stand buckles, Fortress to collect on $187M personal guarantee
Clock ticking on Charles Cohen to post $135M or sell properties
