C
harles Cohen, a New York billionaire and real estate mogul, is facing financial difficulties after his family's firm, Cohen Brothers Realty, struggled to adapt to the pandemic-induced downturn in office leasing. Since 2020, at least six of his buildings have sat more than 20% empty, with three less than 60% occupied. This has led to a significant decline in value for his real estate holdings, which peaked at $3.7 billion in 2022 but are now estimated to be worth around $1.6 billion.

    Cohen disputes the valuation, claiming it should be higher, and points to better leasing activity and recent upticks in office building sales as evidence that his firm is turning a corner. However, financial documents reveal that Cohen's empire was already struggling with "net operating losses" and high vacancy rates by 2022, raising substantial doubt about its ability to continue as a going concern.

    Cohen has been working on a plan to save his fortune, including refinancing properties and negotiating new leases. He also plans to convert some of his office space into residential apartments and condos, with several projects already underway or in the works. However, these efforts may not be enough to stem the tide of financial difficulties facing Cohen Brothers Realty.

    Cohen's troubles have been exacerbated by a long-running battle with Fortress Investment Group, which lent him $534 million in 2022 but has since sued him for full repayment and demanded a personal guaranty of up to $187 million. Cohen has counteredued, seeking to have the lawsuit dismissed and alleging that Fortress had reneged on an agreement to extend the loan.

    Despite these challenges, Cohen remains optimistic about his firm's prospects and is working on several new projects, including a 23-story office tower in West Palm Beach, which he plans to finance with a mix of equity and loans. He also believes that converting some of his office space into residential apartments and condos could be a smart move, given the resurgence in leasing activity in Manhattan.

    Cohen's personal wealth has taken a hit as well, from $3.7 billion in 2022 to an estimated $1.6 billion today. However, he remains confident that he can turn things around and emerge from this difficult period stronger than ever. "I'm not paying that personal guaranty," he said. "It's not over by a long shot."