Bob Knakal Sued Charles Cohen Over Unpaid Commission
The real estate broker is seeking $1 million in fees from the sale of a Manhattan office property.
Updated on Sept. 30, 2026 in Commercial
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Bob Knakal has filed a lawsuit in Manhattan Supreme Court alleging that developer Charles Cohen failed to pay a $1 million commission. The dispute centers on the $141 million sale of the property located at 3 East 54th Street.
Why it matters
The lawsuit highlights a significant disagreement over brokerage agreements and compensation in high-stakes New York City commercial real estate deals. It challenges the developer's claim that no formal hiring contract existed between the parties.
Knakal claims he was promised a 0.75 percent commission on the $141 million sale price. The legal filing includes a signed contract as evidence of his role as a co-exclusive broker.
The players
Bob Knakal
He is a prominent New York City commercial real estate broker who initiated the lawsuit.
Charles Cohen
He is a real estate developer and the head of Cohen Brothers who is being sued for unpaid commission.
Vornado Realty Trust
This is a publicly traded real estate investment trust that was one of the entities to submit an offer for the property.
The details
Knakal alleges he was appointed as a co-exclusive broker in June 2025 and successfully secured nine offers for the building, including one from Vornado Realty Trust. Cohen Brothers disputes these claims and maintains that the company never officially hired Knakal for the transaction.
Timeline
June 2025: Cohen allegedly appointed Knakal as a co-exclusive broker.
January 7, 2026: The sale of 3 East 54th Street officially closed.
September 30, 2026: Knakal filed the lawsuit against Cohen in Manhattan Supreme Court.
Culture Shift
This case underscores the litigious nature of high-end brokerage agreements in a cooling New York City commercial market. It reflects a broader trend of increased scrutiny over commission payouts when multi-million dollar property deals reach completion.
The lawsuit serves as a reminder for property owners and brokers to ensure all co-exclusive agreements are clearly documented and understood by all parties. For local commercial participants, it highlights the potential for lengthy legal proceedings to follow even after a transaction closes.
The takeaway
Disputes over verbal or contested written agreements remain a major risk factor for stakeholders in the commercial property sector. Maintaining ironclad contracts is essential to avoid lengthy court battles after property sales are finalized.
Further reading
Learn more about the local market in New York City Commercial.
Source note: This article includes information reported by The Real Deal New York.
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