Billionaire Charles Cohen has agreed to sell his Manhattan office tower at 623 Fifth Avenue to Vornado for $218 million, according to an announcement made by the company on Monday. The sale comes as Cohen faces a nearly $200 million judgment owed to Fortress Credit Corp.
The building was previously valued at $712 million in 2023, based on plans for a residential conversion and sell-out, according to a financial statement filed with the court. Robert Horowitz, who is representing Cohen in the transaction, stated that as an office property, its value was closer to $230 million. Debt on the property stood at $112.4 million last year.
Cohen’s legal dispute with Fortress stems from his personal guarantee of a $534 million loan portfolio. After defaulting on the loans, Fortress pursued his personal assets and ultimately took control of buildings used as collateral through one of the largest UCC foreclosures recorded.
In March, Fortress secured a $187 million judgment against Cohen. With interest added, the amount now stands at $194.4 million before legal fees, according to correspondence from Fortress to the court.
Cohen maintains that asset sales are necessary before he can pay down what he owes. However, Fortress has accused him of delaying and is seeking court approval to appoint a receiver for his properties.
Cohen’s attorneys have pushed back against these claims: “Fortress’s aggressive pursuit of Mr. Cohen is doing nothing more than interfering with efforts to maximize the value of his assets and generate the most amount of liquidity to pay down the Judgment,” they wrote in June.
Between April and late June, representatives for Cohen met with five potential buyers regarding 623 Fifth Avenue. According to a letter from law firm Blank Rome submitted to the judge, discussions included a publicly traded REIT—likely Vornado—a hotel operator, and two New York City developers.
The 36-story building covers more than 352,000 square feet and is owned by an entity fully controlled by Cohen. The property is currently about 75 percent vacant due to previous plans for residential conversion, as noted in Vornado’s release.
Vornado does not plan to pursue residential redevelopment but instead aims to redevelop 623 Fifth Avenue into a Class A office tower. The company expects the deal will close next month and anticipates completing redevelopment by 2027.
Fortress declined comment on the transaction.
According to further court documents from Fortress, at least four properties owned by Cohen are undergoing foreclosure proceedings; this includes another property he intends to sell at 3 East 54th Street.
