Charles Cohen’s 750 Lexington Avenue office building is set to be auctioned next month following a foreclosure lawsuit. A state court recently ordered the 31-story property to be sold to pay off a $155.9 million loan balance.
The auction will take place on January 21 at 2:15 pm at the New York State Supreme Court in Manhattan, according to Joshua Stein, who has been appointed as the referee for the sale. The winning bidder will acquire both the leasehold and the borrower’s interest in the land beneath the building.
750 Lexington Avenue is considered one of Cohen Brothers Realty’s legacy properties, originally developed by Charles Cohen’s family in the 1980s and serving as the company’s headquarters. In 2015, a borrower connected to Cohen secured a $130 million loan on the leasehold.
Financial challenges emerged after tenants began leaving during the pandemic, which led to missed payments by Cohen, based on data from Morningstar Credit. In 2023, WeWork stopped paying rent and later filed for bankruptcy; this prompted Cohen to negotiate an amendment to their lease.
Recent financial statements show that net operating income for the property dropped to $1.8 million over twelve months—a decrease of about 86 percent since underwriting. The property’s appraised value also fell sharply from $300 million to $41 million during this period, as reported by Morningstar Credit. Since 2021, debt service costs have exceeded annual net operating income.
In 2024, a special servicer initiated foreclosure proceedings against the borrower, citing missed tax payments and incomplete financial disclosures. The lender further accused Charles Cohen—who acted as a limited guarantor—of failing to provide documents verifying his net worth and liquidity.
A judge granted summary judgment in July, determining that nearly $25 million had accrued beyond the original loan amount owed. As a result, court documents now list total outstanding debt at $155.9 million.
Legal representatives for both Cohen Brothers Realty and its borrowers did not respond immediately when contacted for comment.
This auction follows other recent losses for entities controlled by Charles Cohen. Last year, he was ordered to pay Fortress Credit $187 million after legal disputes involving loan defaults. To address that judgment, several buildings have been put up for sale: Vornado Realty Trust announced plans in August to purchase 623 Fifth Avenue for $218 million, while another property at 3 East 54th Street was reportedly sold for $188 million.
