Billionaire Charles Cohen has reached an agreement to sell his office tower at 623 Fifth Avenue in Manhattan to Vornado for $218 million, according to a company announcement on Monday.
The sale is expected to help Cohen address a nearly $200 million judgment owed to Fortress Credit Corp. However, the price is significantly lower than the building’s previous valuation. In 2023, a financial statement filed with the court valued the property at $712 million, a figure that depended on plans for residential conversion and subsequent sales. Robert Horowitz, who represents Cohen in the deal, noted that as an office building, its value was closer to $230 million. Cohen’s financial statements from 2023 listed debt on the property at $112.4 million.
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 acquired several buildings through what was described as one of the largest UCC foreclosures on record. In March, Fortress secured a $187 million judgment against Cohen; with interest added, this amount has risen to $194.4 million before legal fees.
Cohen claims he must liquidate assets before satisfying the judgment. Fortress has accused him of delaying asset sales and is seeking court approval to appoint a receiver for some properties. Meanwhile, Cohen’s lawyers maintain that their client is actively working toward selling assets.
“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,” his lawyers wrote to the court in June.
According to correspondence from law firm Blank Rome submitted to the judge, between April and late June representatives for Cohen met with five potential buyers regarding 623 Fifth Avenue. The letter also mentions discussions with a publicly traded REIT — believed to be Vornado — along with a hotel operator and two New York City developers.
The building at 623 Fifth Avenue stands 36 stories tall and spans more than 352,000 square feet. It is owned by an entity fully controlled by Cohen and is currently about 75 percent vacant due to previous plans for residential conversion. Vornado does not intend to pursue those plans but will instead redevelop it as a Class A office tower, aiming for completion in 2027.
Vornado expects to finalize its purchase next month.
Fortress declined requests for comment.
At least four other properties owned by Cohen are reportedly undergoing foreclosure proceedings; these include 3 East 54th Street, which he also intends to sell.
