Creditors close in on Charles Cohen; CPT gets a lifeline ... and more

The best national real estate stories from The Real Deal. May 19, 2024 [View in Browser]( | [$1 for 1 Month]( [The Real Deal Logo](   [The National Logo](   In today’s newsletter, creditors are starting to close in on billionaire [Charles Cohen](. Plus, while Columbia Property Trust gets a [lifeline](, Starwood’s REIT is [running out of liquidity](. In New York, Billionaire’s Row dwellers [battle it out]( over their ground leases and the City makes a [prime land swap](, while in South Florida a brand mogul could be [piecing together]( a major assemblage. These stories and more below.   Creditors close in on Charles Cohen's debts Charles Cohen runs a multi-billion dollar real estate empire. Which is a funny thing to call your “day job”. Cohen made that reference to[Variety in 2018]( in an article titled “Charles Cohen Takes Cinema Seriously.” That’s evident – in his time at the helm of Cohen Brothers he’s added [a portfolio of independent movie theaters]( to the firm’s holdings, and his Cohen Media Group has distributed more than 120 independent films and shorts. Now lenders are asking whether he takes his real estate seriously, too. Cohen Brothers owns prime real estate across the country, including Design Centers in New York, South Florida, LA, and Houston and several office towers in prime Midtown. But in the last weeks and months creditors have started to circle. Last week, the special servicer on $130 million in CMBS debt backed by [750 Lexington Avenue]( filed a [foreclosure]( action, claiming that the building has been behind on payments since last summer. The week before, [Fortress moved to foreclose]( on equity interests in a $548 million Cohen portfolio. Experts told TRD that the U.C.C. foreclosure action is among the largest, if not the largest, in the U.S. His debts have topped $1 billion as office assets writ large suffer from low occupancy and high interest rates, and Cohen’s assets in particular have faced defaults, downgrades and delinquencies. Longtime Cohen Brothers senior vice president Dave Fogel brushed off concerns last month, saying that “Things aren’t as bad as they’re made out to be” and that they were in a “positive dialogue with the servicer.” At least one lender seems to disagree. According to a recent [Bisnow article](, Fortress co-chairman Dean Dakolias said in emails that Cohen had “not demonstrated that you understand or prioritize the severity of your situation,” in reference to the $538 million UCC foreclosure. So – where does Cohen Brothers go from here? Cohen could have an uphill battle to overcome the mounting debts, and in a difficult environment. We’ll be watching to see whether Charles can take charge. Thoughts about Cohen Brothers’ challenges? Write to Suzannah Cavanaugh and Keith Larsen at suzannah.cavanaugh@therealdeal.com and kl@therealdeal.com.   Together with Masterworks Masterworks is giving new users $100 to celebrate $1 billion AUM [Masterworks]( For a limited time, the $1 billion AUM art investing platform Masterworks is offering new users $100, when they sign up – no strings attached. All you have to do is create an account, and complete your onboarding call. It's that simple. With this offer, there may never be a better time to join more than 64,631 investors diversifying their portfolios with shares of multi-million dollar contemporary art. Masterworks has offered over 400 paintings to date, and has completed 22 exits with representative total net returns of 20.3%, 31.7%, and 32.6%. So if you’ve heard of Masterworks, but never took the time to learn more, now's your chance to get paid for doing it. [Just use this link to get started](.   Past performance is not indicative of future returns. Investing involves risk. See important [disclosures]( and giveaway [details](.   [I'm an image]( [After pandemic’s biggest office default, Columbia Property Trust scores lifeline]( Columbia Property Trust nabbed an extension and lower interest rates but suffered 30 percent value cut on the seven property office portfolio. [I'm an image]( [Starwood REIT quickly burning liquidityÂ]( Barry Sterlinch’s real estate investment trust is burning through an unsecured credit facility amid heavy redemption requests. [I'm an image]( [Billionaires’ Row residents fight for their ground lease co-ops]( Co-op shareholders are pushing a bill that will cap increases on ground lease co-ops.   Advertisement   [I'm an image]( [Brand Studio Redefining Luxury Rentals: Ten Thousand]( [I'm an image]( [City taking control of Red Hook waterfront, could build housing]( Land swap with Port Authority frees 120 acres from Brooklyn Bridge Park to Red Hook for redevelopment into housing, retail and more. [I'm an image]( [Is brand mogul Anand Khubani buying a $100M waterfront Miami Beach assemblage?]( Is brand mogul Anand Khubani the buyer of a $100 million waterfront Miami Beach residential assemblage? [I'm an image]( [Foxtrot founder Mike LaVitola eyes brand revival]( The founder of a high-end grocery, convenience store chain that suddenly shuttered weeks ago is restructuring deals with landlords to reopen. 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