Lenders are continuing their legal assault on Charles Cohen’s properties, now in Westchester.
Cohen’s office campus in White Plains was hit with a foreclosure case last month, with the lender demanding $66 million. The billionaire was named as a defendant in the suit because he signed a guaranty agreement connected to the loan.
Cohen Brothers Realty Corp. bought the property at 333 Westchester Avenue in 1998 for $25 million, according to contemporary reporting from the New York Times. In 2004, an entity connected to the company took out $77 million in loans for the property.
Cohen served as a limited guarantor on the loan, pledging to cover some of the borrower’s obligations in the event of fraud, environmental issues or other negative conduct.
The borrower defaulted on the loan by failing to make monthly payments in the summer and fall of 2024, failing to pay off the loan by its November maturity debt, and letting about $1.4 million in utilities debt accrue, according to the complaint. Two of the commercial condos in the complex are occupied and together pay a total of about $32,200 per month, the lender alleges.
The plaintiff argues in the complaint that Cohen is liable for any loan principal that remains unpaid after a potential sale of the property, although it does not reference any events triggering Cohen’s guaranty.
David López, general counsel for Cohen Brothers Realty, said no events have triggered the guaranty and the foreclosure is related to a maturity default.
“We are in dialogue with the lender and continue working with the lender to either refinance or restructure the loan,” López said via email. “We are optimistic that this will be worked out in due course.”
The property was originally constructed as the headquarters for General Foods Corp., according to the Cohen Brothers’ Realty website. The 39-acre office campus is a five-minute drive from the White Plains Metro North station and has a fitness center, basketball court, volleyball court, and free shuttle to the train, according to the website.
It’s one of several suits Cohen and his company are dealing with. In July, a lender won a summary judgement on Cohen Brothers’ 750 Lexington Avenue, sending the building to foreclosure.
Lender Fortress Credit Corp. is also agitating to collect $187 million from Cohen personally after a court entered a judgement against him last year. The fight has pushed Cohen to try to sell his buildings. Last month he closed on the sale of 623 Fifth Avenue to Vornado, resulting in a $30 million payment to Fortress, according to court documents.
He has also agreed to sell 3 East 54th Street for $188 million to an unnamed buyer, according to court documents.
Forbes has estimated Cohen’s net worth at $1.6 billion, down from $3.7 billion at its peak.
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