Foreclosure looms on former Arrowwood complex and other major Charles Cohen-owned properties
October 30, 2024 at 11:29 p.m.
Judge Joel Cohen’s foreclosure courtroom in Manhattan Nov. 8 will be the scene of high drama affecting the Village of Rye Brook and the Doral Greens Homeowners Association (DGHOA).
That’s when the largest Uniform Commercial Code (UCC) foreclosure in New York State history is due to see properties owned by Charles Cohen, including the land where the former Doral Arrowwood Resort and Conference Center sat, foreclosed and taken over for auction by Fortress Investments.
Hopes for increased real estate taxes and hotel occupancy tax receipts from Cohen’s proposed property development remain up in the air.
For the DGHOA and its residents, there are other more immediate issues.
At Rye Brook Village Hall, Administrator Chris Bradbury told the Westmore News last week:
“Regarding the hearing on November 8th, the village is following these developments but that will take its own course. The village does not have a role in that matter but is obviously watching its outcome and any impacts.
At the same time, the owner continues to demolish the remainder of the buildings and they are almost completed with this task. The DEIS (Draft Environmental Impact Statement) is also still actively being worked on by the developer’s consultants.”
A sampling of DGHOA residents who can hear the demolition (but not always see it—as work is taking place at a distance behind foliage and high steel fences) reflected their thinking that the property is worth more totally cleared of any buildings and with an approved DEIS from the Village, and a prospective bidder might pay far more for the property in that condition.
In the meantime, DGHOA President David Ruzow is dealing with a crisis totally Cohen’s responsibility. As Ruzow wrote homeowners last week:
“…the Cohen organization removed the generator that powers our irrigation system. I don’t know why it was removed; all we know is that it has been taken away.
…we have contacted the organization, and they don’t have an explanation as to why it was removed. However, they have agreed to provide us with water on a daily basis, at least Monday through Friday.
The reality is that this is really not adequate, and we will start to see our lawns, plants, and flowers dry up.
We are calling upon you to do some of your own watering in front of your homes, including your plants, shrubs, flowers, and lawn areas.”
Background on the Cohen foreclosure
from the real estate magazine The Real Deal
As Suzannah Cavanagh and Keith Larsen wrote in the June 3 edition of the real estate magazine The Real Deal:
“On the line are Cohen’s interest in DCOTA and Le Méridien, a Westchester redevelopment site (the former Arrowwood property), a New York office building in default on its ground lease and 50 loss-making indie theaters in the U.S. and U.K., all collateral for the sponsor’s $534 million loan.”
By Aug. 14, The Real Deal reported:
“After the judge denied Cohen’s motion to kill the auction, the landlord’s legal team pushed for an early 2025 date, arguing Fortress’ November 8 proposal wouldn’t extend enough time for bidders to familiarize themselves with the collateral and find financing.
In short: the process was “too short” to pull the top dollar bids Cohen would need to pay off his debts, the firm’s attorney Kevin Nash said ahead of the decision.
Fortress’ attorney Lindsey Harris during the conference speculated Cohen had alternative motives for the delay, according to the transcript.
Cohen was racking up $7 million in interest each month, she alleged, and it was less likely that more time would boost bids by that much each month than merely saddle the firm with more debt that the sale of the collateral would be unable to offset.
‘Wow,’ the judge said. ‘So that’s assuming a fairly risky game on [Cohen’s] side.’
‘They would rather expand the debt and potentially be responsible for all these increased costs, all on the assumption that even if they lose everything, they’ll be bankrupt anyway, so who cares?’ he said.
‘I think that’s plausible, yes,’ Harris said.
Nash dismissed Harris’ speculation.
‘There’s all these sinister motives being attached to the objection,’ he said. ‘There isn’t any.’
Neither attorney immediately responded to additional requests for comment.”
Cohen’s legal/financial situation worsens
This past Monday, Oct. 28, The Real Deal’s Keith Larsen published more troubling details on Cohen’s financial situation.
“Fortress alleges it has recently discovered that Cohen is attempting to shield his treasured personal assets from the lender.
Cohen allegedly transferred $70 million of assets to new owners, Fortress claimed in a recent filing in New York Supreme Court. Notably, Cohen allegedly switched ownership of his $20 million Greenwich mansion to a trust in his wife’s name. He also allegedly transferred ownership of at least four luxury boats worth $50 million, according to Fortress.
Cohen allegedly made these transfers just days after giving his deposition, court filings allege.
In the new filings, Fortress alleges Cohen transferred ownership of the Greenwich property to his wife Clodagh Cohen in May 2024. The deed states that a consideration of $10 was paid for the transfer of ownership. Cohen had purchased the property in 1991. The estate had a garage where Cohen stored his Lamborghini, Rolls Royce, and Ferrari, alongside a backyard golf course and a personal movie theater.
Fortress further alleges Cohen appears to have transferred four boats to new owners, including a yacht Cohen had valued at $49 million. The yacht features a 10-meter pool, a basketball court, a gym, four decks, and an elevator. Cohen appears to have transferred each vessel to a separate newly formed Cayman Islands entity between May and June, according to Fortress.
“These steps appear calculated to hinder Fortress’ ability to enforce the anticipated judgment against Cohen’s assets and raise concerns that Cohen may have taken or may be taking additional steps to frustrate Fortress’s ability to collect on the forthcoming judgment,” Fortress’ lawyers wrote in their filings.
The lender is asking the court for an order to allow for immediate discovery of Cohen’s assets and to stop Cohen from selling or transferring interest in his properties.
Cohen’s lawyers did not return a request to comment. Fortress declined to comment.”
Cohen’s local attorneys
remain publicly optimistic
The Westmore News contacted Cohen’s White Plains based law firm, Zarin & Steinmetz, LLP, and its partner, Brad K. Schwartz, for comment.
Back on Feb. 14, 2023, at a Village Board meeting, Schwartz offered his business card to this reporter and urged the Westmore News to call him at any time with any questions.
On Wednesday, Oct. 23, we contacted Schwartz by e-mail and phone with this question: “what, if anything, can you tell us about any moves Mr. Cohen might make other than to surrender the property at the hearing?”
Schwartz responded the next evening, Oct. 24:
“Mr. Cohen is working with the lender to resolve the open issues. In the meantime, the Project is moving full steam ahead. Our professional consultants are preparing the DEIS. Mr. Cohen looks forward to continuing the public review of the planned revitalization of this prominent site in the Village.”
Schwartz was contacted again on Oct. 28 to comment on the latest Real Deal disclosures on Cohen’s financial and legal perils.
By press time Wednesday, Schwartz had failed to respond to the latest catalogue of Cohen’s woes.
Comments:
You must login to comment.