Friars Club Up for Sale After Facing Foreclosure Over $13M Loan
By Isabelle Durso October 24, 2024 2:13 pm
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It’s no joke. The famous Friars Club, New York City’s private club for showbiz folks and a longtime venue for comedy roasts, could finally close its curtains after facing foreclosure and years of financial issues.
The club’s space at 57 East 55th Street, run by criminal defense lawyer Arthur Aidala, will be up for grabs in a foreclosure sale after its lender, Kairos Investment Management, claimed in 2023 that the club had defaulted on a $13 million loan and stopped making mortgage payments. News of the foreclosure sale was first reported in The Real Deal.
Kairos also claimed the building had exposed wiring and damage from water and mold, leading to electrical and flooding issues, according to TRD.
Aidala, whose clients have included Harvey Weinstein and Rudy Giuliani, previously said the club had received multiple offers from buyers to stay in the building. However, upon finding the club owed Kairos $17.1 million, the U.S. District Court of the Southern District of New York ruled last year in favor of the lender and allowed Kairos to foreclose.
Aidala and a spokesperson for Kairos also did not immediately respond to requests for comment.
“This is a rare opportunity to purchase an iconic venue with a rich legacy,” Northgate Real Estate Group’s Greg Corbin, who is marketing the foreclosure sale, said in a statement to Commercial Observer. “The vacant building is a blank slate and offers incredible versatility for a number of high-end uses.”
It’s unclear if there are any current bids on the building, but Corbin told CO the new buyer could use the property for a residential conversion, a social club, a boutique hotel, a restaurant or a lounge.
The Friars Club had long been home to comedians and entertainers — such as “Tonight Show” hosts Johnny Carson and Jimmy Fallon, Kevin Hart and Robert De Niro — looking to roast showbiz legends.
But the club faced a series of obstacles that ultimately led to its downfall. In 2017, federal agents raided its offices as part of a financial probe into tax fraud by its former executive director. Meanwhile, it faced dwindling membership, and in 2020 flooding issues and the pandemic forced the club to shut down, the New York Times reported.
Since then, Friars Club has not been financially stable enough to resume regular hours, and it will now likely see its final show.
Isabelle Durso can be reached at idurso@commercialobserver.com.
