- Charles Cohen sold 3 East 54th St. in Midtown for $141M, $47M below the expected price.
- The sale proceeds will partially repay a $187.2M personal guarantee to Fortress Investment Group.
- Fortress, the lender, expressed frustration over the lower-than-anticipated recovery and is pushing for receivership.
- Vornado Realty Trust acquired the property and plans immediate demolition.
Lower-Than-Expected Midtown Sale
Billionaire investor Charles Cohen finalized the sale of 3 East 54th St. in Midtown Manhattan for $141M to Vornado Realty Trust, reports Bisnow. The price came in $47M below previous estimates, causing significant dissatisfaction from lender Fortress Investment Group, which is seeking to recover nearly $200M from Cohen after a 2024 loan default.
Background on Debt and Dispute
Fortress holds a $187.2M personal guarantee from Cohen. It expected the 3 East 54th St. sale, along with the $218M sale of 623 Fifth Ave., to cover most of the outstanding debt. But only $30M came from the Fifth Ave. deal. And with a lower Midtown sale price, Fortress believes just a fraction of its claim has been satisfied.
The lender has been increasingly active in pursuing legal remedies tied to Cohen’s portfolio, following earlier moves to revive foreclosure proceedings on other assets tied to the billionaire investor.
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Vornado Steps in, Demolition Planned
Vornado purchased the debt on 3 East 54th St. and applied the $107M outstanding as credit toward its $141M purchase. The REIT intends to demolish the 19-story Emery Roth-designed tower, which sits between Fifth and Madison avenues. The timing of the deal shifted abruptly from prior buyer contracts that failed to close.
Ongoing Legal Pressures and Receivership Pursuit
Fortress is pursuing legal action, pushing for receivership of Cohen’s assets and subpoenaing company executives for financial records. The lender says Cohen’s recent property sales fall far short of satisfying court judgments related to the personal loan guarantee. Neither Fortress nor Cohen Brothers Realty commented on next steps.
