Charles Cohen is fighting back against allegations that he transferred valuable assets to his wife to shield them from creditors.
The embattled developer, who controls properties including 750 Lexington Avenue and 135 East 57th Street, filed an affidavit in New York State Supreme Court last week denying accusations of asset dissipation, Crain’s reported. Cohen maintained he has “more than sufficient assets to cover any payment obligations” despite facing a $187 million personal guarantee following his default on more than $500 million in loans.
“During my tenure as a business person, I have never failed to make good on my financial obligations,” Cohen stated. “I do not intend to dissipate any of my assets to evade a judgment.”
The filing comes as Cohen battles Fortress, which sued him last year for allegedly defaulting on a $534 million loan portfolio. A judge in March found that Cohen faces personal liability for $187 million. Fortress followed with claims in April that Cohen “funneled” assets to his wife, Clo, to avoid creditors.
Cohen acknowledged transferring his 30-acre Greenwich residence and 220-foot superyacht “Seasense” to a trust for his wife’s benefit in a transaction completed last May. He said the moves were made “in consideration of almost 20 years of marriage”. Fortress values the Greenwich property at $20 million and the yacht at $50 million.
The transfers occurred against the backdrop of mounting distress across Cohen’s 12 million-square-foot commercial portfolio. His eight Midtown towers are emblematic of the aging office product struggling most in the post-pandemic market. The 600,000-square-foot tower at 805 Third Avenue, for instance, dropped from 92 percent occupied in 2019 to just 54 percent leased last year, according to Moody’s, and no longer generates sufficient cash flow to service its $275 million mortgage.
Earlier legal proceedings revealed the broader scope of Cohen’s financial troubles. Fortress previously estimated Cohen defaulted on more than $1.1 billion in total loans and recovered collateral through the largest UCC foreclosure on record, including 50 movie theaters and development sites. The Appellate Division recently denied Cohen’s appeal of the personal guarantee ruling, clearing the way for Fortress to begin collection efforts.
Cohen noted in filings that he has nearly $400 million in equity across his city properties and voluntarily agreed not to transfer his substantial ownership interests in “aforementioned properties” while litigation continues.
Forbes estimates his net worth fell from $3.7 billion in 2023 to $1.6 billion today.
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