Cohen Brothers Sells Second Midtown Building in Weeks for $188M

Charles Cohen has reached an agreement to sell his 300,000-square-foot office building at 3 East 54th Street for $188 million barely a week after offloading another Midtown office tower.

A court filing by David Fogel, executive vice president at Cohen’s company, Cohen Brothers Realty, noted that the company is waiting for a deposit by “international wire,” suggesting that the buyer, whose identity has not been revealed, is likely overseas. The identity of the brokers on the deal for 3 East 54th Street, which court papers filed by Cohen’s attorneys identify as a development site, is also unclear. Crain’s New York Business first reported the trade.

This is the company’s second major deal of late, as Cohen Brothers agreed to sell the 36-story, 382,500-square foot office building at 623 Fifth Avenue to Vornado Realty Trust in late August for $218 million, as Commercial Observer previously reported.

CO reported that 623 Fifth Avenue was 75 percent vacant at the time of the deal, and that Vornado, which expects to complete the sale this month, intends to redevelop the property into a boutique Class A office building that would be ready for tenants sometime in 2027.

These sales are the continuation of rough times for Cohen Brothers.

According to Crain’s, Cohen is currently in need of around $200 million for lender repayments. 

In December 2024, CO reported that Cohen Brothers was facing potential foreclosure at 3 East 54th Street, where it had been planning a major redevelopment, noting that lender Forethought Life Insurance had filed suit against Cohen Brothers for “allegedly defaulting on $85 million worth of loans at the property since July,” according to Crain’s.

At the time, Cohen Brothers said it was in the midst of refinancing the mortgage on the property.

Two months prior, CO reported that a $182 million CMBS loan secured by the company for its 41-story, mixed-use office property 3 Park Avenue had been transferred to special servicing. The article said that 3 Park Avenue had fallen to 63 percent occupancy by the end of 2020, and that it stood at 54 percent in March 2024.

Cohen Brothers Realty did not immediately respond to a request for comment.

Larry Getlen can be reached at lgetlen@commercialobserver.com.