Billionaire Charles Cohen could lose his wine collection, mansions, superyachts, and Ferraris over loan defaults

Real estate mogul and billionaire Charles Cohen is now embroiled in a high-stakes legal battle that could strip him of a lavish portfolio of luxury assets, including his prized superyacht, multimillion-dollar car collection, and an expansive vineyard estate in France. The showdown stems from a soured $535 million loan tied to his real estate empire — a collapse that has triggered aggressive legal action by Fortress Investment Group, one of Wall Street’s heavyweight lenders WSJ reported.

At 73, Cohen — whose net worth is estimated near $2 billion — is fighting to retain control of his personal and corporate holdings amid mounting legal and financial pressure. Fortress, backed in part by Abu Dhabi’s Mubadala Capital, has accused Cohen of defaulting on a massive 2022 real estate loan issued to his firm, Cohen Realty Enterprises. The lawsuit has opened a floodgate of asset seizures and sparked a high-profile legal standoff in courts across New York and Europe.

From Luxury to Liability: Fortress Strikes Back

The original loan was secured with a slate of high-value commercial properties, including:

• A Manhattan office tower,
• The Le Méridien Dania Beach hotel in Fort Lauderdale, Florida,
• Four other commercial real estate assets.

But a critical clause in the agreement — a personal guarantee for $187.2 million — has brought Cohen himself into the legal spotlight. Fortress claims that after Cohen’s firm defaulted in March 2024, the collateral proved insufficient to cover the balance. That enabled the firm to target Cohen’s personal holdings — a pursuit now expanding into his private lifestyle empire.

Fortress has already seized significant portions of Cohen’s assets, including:

• Hundreds of thousands of dollars in artwork, decor, and fine wines from his 138-acre Château de Chausse vineyard estate in France’s Provence region.
• Legal rights to pursue 25 luxury cars, including two Ferraris.
• Restraints on brokerage accounts owned by Cohen and close family members.
• Seizure attempts of luxury residences in Greenwich, Connecticut and the south of France.
• A 220-foot superyacht valued at nearly $50 million, currently detained in an Italian port, reportedly moved under his wife’s name — a transfer Fortress calls an attempt to dodge enforcement.

Cohen’s Defense: Planning or Evasion?

Cohen denies any wrongdoing and insists his asset transfers were part of estate and tax planning — not an effort to obstruct creditors. In a French court case involving the vineyard estate, a judge ruled in Cohen’s favor. During a February deposition, he described Fortress’ persistence as aggressive and relentless:

“They keep pecking at us, like a bird would peck at something,” he said. “Enough was never enough.”

His attorneys argue that Fortress is engaging in harassment, pointing to the freezing of his personal accounts and those of his mother and sister. Cohen has also accused Fortress of reneging on a verbal extension deal. According to him, a handshake agreement was in place for another extension on the loan repayment. Fortress denied the claim, and both the New York State Supreme Court and the appellate division ruled in the lender’s favor.

“Defendant’s statements that the parties understood that the December emails were a binding agreement…were self-serving and unsubstantiated,” the court wrote.

A Market-Driven Collapse

The legal chaos reflects a broader real estate downturn that began during the pandemic. Charles Cohen’s portfolio — heavily invested in office space and movie theaters — was among the hardest hit. While many developers handed properties back to lenders, Cohen attempted to weather the storm. He restructured his loan with Fortress multiple times, but persistent declines in commercial real estate values left him exposed.

Fortress, now under pressure to recover funds for its investors, says it had no alternative but to enforce the personal guarantees after the final default.

“Fortress is left with no choice but to begin enforcing its judgment against Cohen’s assets,” the firm said in court filings.

Cohen Countersues, but the Clock Is Ticking

Cohen’s firm has filed a countersuit against Fortress, but with courts already siding with the investment firm and asset seizures underway, the billionaire appears to be on the defensive. He is now racing to sell off remaining properties to raise capital and settle his debts.

Neither Fortress nor Cohen’s legal team have commented further, as proceedings continue in New York and Europe.

This unfolding case underscores growing investor concerns about the fragility of highly-leveraged real estate empires amid prolonged weakness in the commercial property market. For financial institutions, it highlights the rising importance of strict collateral enforcement — especially when dealing with billionaire borrowers. For the luxury market, Cohen’s forced liquidation could inject rare high-end assets into global auctions — from superyachts and fine wines to luxury estates — potentially altering pricing dynamics.

As Fortress accelerates enforcement, the case could also set a precedent on personal guarantee enforcement in complex corporate loans, especially in cross-border financial arrangements involving ultra-high-net-worth individuals.

Stay with New York Budget for continued coverage of this developing legal and financial story.