Latest news with #FortressInvestmentGroup
Yahoo
5 days ago
- Business
- Yahoo
NYC Billionaire Charles Cohen being sued over bad $535M loan — how to build real estate wealth without drowning in debt
Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. New York City real estate tycoon Charles Cohen has lived a life most people only dream of — complete with exotic cars, lavish mansions and fancy yachts. Now, some of his prized possessions are under threat as a massive business loan gone bad starts to have very personal consequences. Cohen, 73, is being sued by Fortress Investment Group over a $535 million loan extended in 2022 to his firm, Cohen Realty Enterprises. The collateral included a Manhattan office tower, the Le Meridien Dania Beach hotel in Fort Lauderdale, Florida, and four other properties, according to The Wall Street Journal, citing records from New York State's Supreme Court. But that's not all: Cohen personally guaranteed $187.2 million of that loan. His net worth is nearly $2 billion, according to a financial statement filed with the court. His business defaulted last year, and Fortress has since seized much of the collateral. Still, the firm claims those assets fall far short of what Cohen owes, reports The Journal. That shortfall has led Fortress — an investment giant partially owned by Abu Dhabi's Mubadala Capital — to go after Cohen's personal wealth. And that's exactly what it's doing. Fortress is seeking to confiscate Cohen's homes in Provence, France, and Greenwich, Connecticut, reports The Journal, along with his fleet of 25 luxury cars and five yachts — including a 220-foot superyacht that's presently docked at an Italian port under court order. Don't miss Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) You don't have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here's how Following a French court order, debt collectors have already seized hundreds of thousands of dollars' worth of Cohen's belongings from his 138-acre estate and vineyard in Provence, according to The Journal. The haul apparently included high-end furniture, valuable artworks and a fine wine collection. 'They keep pecking at us, like a bird would peck at something,' Cohen said of Fortress in a February deposition, per The Journal. 'Enough was never enough.' A blunt reality check Real estate has long been one of the most powerful tools for building wealth — and for good reason. It has the potential to generate steady rental income, appreciate over time and offer valuable tax advantages. But as Cohen's case shows, that success isn't guaranteed — especially when there's large amounts of debt involved. Leverage is a common part of real estate investing, even for everyday investors. With home prices sky-high, most people need to take out a mortgage to buy an income property. And with interest rates elevated, borrowing has become more expensive — assuming you can even save enough for a down payment. The good news? You no longer need to take on traditional debt to get started in real estate. Becoming a real estate mogul — starting with $100 Crowdfunding platforms like Arrived have made it easier than ever for everyday investors to gain exposure to America's real estate market. Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants. The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you'd like to purchase, and then sit back as you start receiving any positive rental income distributions from your investment. Read more: Rich, young Americans are ditching the stormy stock market — A $35-trillion opportunity Rising home prices have helped Americans build substantial wealth through homeownership — but for years, the $35-trillion U.S. home equity market was an exclusive playground for big institutions. Homeshares is changing the game by allowing accredited investors to gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning, or managing property. With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets. Be the landlord of Walmart If you've ever been a landlord, you know how important it is to have reliable tenants. How do grocery stores sound? That's where First National Realty Partners (FNRP) comes in. The platform allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord. With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns. Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties. What to read next Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here's how Car insurance in America now costs a stunning $2,329/year on average — but here's how 2 minutes can save you more than $600 in 2025 Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
Associated Press
6 days ago
- Business
- Associated Press
Vesper Holdings and Fortress Investment Group Recapitalize Hawks Pointe at the University of Kansas
07/25/2025, New York, New York // KISS PR Brand Story PressWire // Vesper Holdings ('Vesper'), a privately-held real estate investment firm based in New York City, and funds managed by affiliates of Fortress Investment Group ('Fortress'), a leading global investment manager, have recapitalized Hawks Pointe, a student housing community located within walking distance of the University of Kansas. Hawks Pointe is a 248-unit, 463-bed student housing community that features a mix of studio, garden-style, loft, and townhouse apartments. Amenities include a resort-style swimming pool, and a two-story clubhouse featuring a 24-hour fitness center, business center and game room. Vesper and Fortress' capital improvement plan will focus on clubhouse and amenity upgrades, along with extensive enhancements to the properties' exteriors and interiors. 'Investor demand remains strong for recapitalizing Vesper's student housing assets, driven by our disciplined execution and consistent ability to generate exceptional risk-adjusted returns for our investors,' commented Isaac Sitt, Co-CEO of Vesper Holdings. 'Institutional partners value experienced sponsors with strong portfolios, active deal flow, and a long-standing presence in the student housing sector.' Vesper's student housing portfolio is among the 10 largest in the United States. Vesper's portfolio, including Hawks Pointe, is managed by Vesper's subsidiary property management company – CLS Living ('CLS'). CLS currently manages over 33,000 student housing beds across 43 university markets. About Vesper Holdings Founded by Elliot J. Tamir and Isaac J. Sitt, Vesper Holdings is a privately held real estate investment firm based in New York City. Vesper Holdings' diverse portfolio includes student housing, retail, mixed use, office buildings and parking structures. Vesper Holdings ranks as one of the top 10 largest student housing owners in the United States. Its real estate portfolio consists of 53 properties, including over 25,000 student housing beds. Source: Vesper Holdings Source published by Submit Press Release >> Vesper Holdings and Fortress Investment Group Recapitalize Hawks Pointe at the University of Kansas
Yahoo
23-07-2025
- Business
- Yahoo
Loungers-owner Fortress plots stay at Malmaison hotels
The owner of the Loungers bar chain and Poundstretcher, the discount retailer, is weighing a takeover of two of Britain's best-known hotel chains. Sky News has learnt that Fortress Investment Group is among the parties considering offers for Malmaison and Hotel du Vin, which sit under the same ownership structure. Cushman & Wakefield (C&W), the commercial property agent, is handling the auction. The group trades from 37 hotels in 27 UK cities, with the portfolio split almost equally between the two brands. The chains have been through a succession of owners over the last 20 years, including the private equity firm KSL Capital Partners. They are now owned by Singapore-based Frasers Hospitality Group, which reportedly paid more than £360m to acquire the group in 2015. A number of other bidders are also said to be participating in the auction, although the current valuation attached to the business was unclear. Fortress has been on a buying spree in Britain in recent years, snapping up assets including Majestic Wine. Earlier this year, the investment firm bought Loungers for about £350m, while it also explored a takeover of the supermarket chain Wm Morrison in 2021 before being beaten to a deal by buyout giant Clayton Dubilier & Rice. Fortress declined to comment, while C&W has been contacted for comment.
Sky News
23-07-2025
- Business
- Sky News
Loungers-owner Fortress plots stay at Malmaison hotels
The owner of the Loungers bar chain and Poundstretcher, the discount retailer, is weighing a takeover of two of Britain's best-known hotel chains. Sky News has learnt that Fortress Investment Group is among the parties considering offers for Malmaison and Hotel du Vin, which sit under the same ownership structure. Cushman & Wakefield (C&W), the commercial property agent, is handling the auction. The group trades from 37 hotels in 27 UK cities, with the portfolio split almost equally between the two brands. The chains have been through a succession of owners over the last 20 years, including the private equity firm KSL Capital Partners. They are now owned by Singapore-based Frasers Hospitality Group, which reportedly paid more than £360m to acquire the group in 2015. A number of other bidders are also said to be participating in the auction, although the current valuation attached to the business was unclear. Fortress has been on a buying spree in Britain in recent years, snapping up assets including Majestic Wine. Earlier this year, the investment firm bought Loungers for about £350m, while it also explored a takeover of the supermarket chain Wm Morrison in 2021 before being beaten to a deal by buyout giant Clayton Dubilier & Rice.
New York Post
21-07-2025
- Business
- New York Post
Billionaire Charles Cohen faces confiscation of wine, mansions, superyachts and Ferraris over loan defaults
Billionaire Charles Cohen faces losing his fine wines, artworks, mansions, superyachts and Ferraris as he scrambles to sell properties so he can pay back loans that went bad on soured real estate deals, according to a report. Cohen, 73, is being sued by Fortress Investment Group over a $535 million loan it made to his property firm, Cohen Realty Enterprises, in 2022. His collateral included a Manhattan office tower, the Le Méridien Dania Beach hotel in Fort Lauderdale, Fla., and four other properties, according to records from New York State Supreme Court. 5 Billionaire real estate mogul Charles Cohen in 2015. Los Angeles Times via Getty Images But Cohen, who has a nearly $2 billion net worth, also personally guaranteed $187.2 million of that loan, the Wall Street Journal earlier reported. That opened the door for Fortress, an investment giant partially owned by Abu Dhabi government fund Mubadala Capital, to go after him personally when his business defaulted last year. Fortress took control of most of his collateral, but said the value still falls short of what Cohen owes. So the firm has launched legal efforts to seize Cohen's mega-mansions in France's Provence region and Greenwich, Conn., according to New York court records. Fortress has also set its sights on Cohen's 25 luxury vehicles, including two Ferraris, and a 220-foot yacht worth nearly $50 million, which was blocked from leaving an Italian port earlier this month. The firm has already seized hundreds of thousands of dollars worth of art, decor and fine wines from the Château de Chausse – Cohen's 138-acre home and vineyard in Provence. Lawyers for Cohen declined to comment. 5 Charles Cohen's Château de Chausse in Provence. Google Maps It wouldn't be the first time personal guarantees have sunk a businessman – famously landing Donald Trump near bankruptcy in the 1990s. Fortress has argued that Cohen is blocking the firm from enforcing the guarantees by transferring ownership of assets to his family members, according to court records. The real estate king moved ownership of the yacht stuck in the Port of Loano under his wife's name last year, according to these records. Cohen argued these transfers were done for estate and tax-planning purposes. A French court ruled in his favor in the case of the Provence château. 5 Charles Cohen and wife Clodagh 'Clo' Margaret Warner Bros. 'They [Fortress] keep pecking at us, like a bird would peck at something,' Cohen said during a February deposition. 'Enough was never enough.' Cohen's firm is countersuing Fortress. The billionaire said he has used personal guarantees before and has never had this kind of problem. His attorneys have argued that Fortress' actions – like putting restraints on Cohen's brokerage accounts and on accounts held by his mother and sister – amount to harassment. 5 Le Méridien Dania Beach hotel in Fort Lauderdale. Google Maps Cohen cannot withdraw money from his personal accounts without Fortress' approval. Fortress has argued that it subpoenaed Cohen's family members because he transferred personal assets to them. 'Fortress is left with no choice but to begin enforcing its judgment against Cohen's assets,' the firm said, according to court records, noting a duty to investors. Fortress and Cohen's partnership was nothing new. The investment giant had financed many of Cohen's real-estate deals in the years before the pandemic. 5 Charles Cohen playing mini golf at an event in 2007. Patrick McMullan via Getty Images But Cohen's portfolio suffered in 2020 as demand for office space and movie theaters – which make up a significant chunk of his properties – plunged. As other building owners gave properties back to lenders, Cohen held on and agreed to a restructuring plan with Fortress, which included the personal guarantees. But the market remained in a stubborn slump, forcing the pair to modify the 2022 loan four times before Cohen's business defaulted in March 2024. Cohen said he had a handshake deal with Fortress for another extension, but the firm denied this and the state supreme court and appellate court ruled in the investment group's favor. 'Defendant's statements that the parties understood that the December emails were a binding agreement…were self-serving and unsubstantiated,' the appellate court ruled. Cohen said he is now rushing to sell properties so he can raise cash for Fortress.
