Friars Club Faces Foreclosure

A legendary establishment in Manhattan for up-and-coming comics is in danger of being foreclosed upon, far from a laughing matter to many.

Lender Kairos Credit Strategies Operating Partnership is threatening to foreclose on the Friars Club in Midtown East, the New York Times reported. The move at 57 East 55th Street comes after the club allegedly missed a payment on a $13 million mortgage; the loan originated two years ago and the alleged missed payment was for $140,000.

A federal judge is also considering the appointment of an outside manager to take over the six-story townhouse. If that request at the hands of the foreclosure filer happens, a potential sale of the property grows more complicated.

Arthur Aidala, the club’s dean, told the publication that there have been multiple offers of $18 million each that would allow the club to remain, but under different management. One of the bidders is a prominent real estate figure: John Catsimatidis, who offered below $6 million.

Chef Charlie Palmer has also expressed interest and is considering opening a restaurant on the first floor, leaving the rest of the building to club members.

Known for its roasts and events, the club has counted Johnny Carson, Irving Berlin, Jimmy Fallon and Carol Burnett among its members. The club has fallen on hard times, though. There have been spurts of life here and there, but it has been unable to fully reopen since September.

An inspection of the property by the lender in March found it in a state of disrepair, trash and liquid waste among the concerns.

In 2010, it lost its tax-exempt status. In 2017, federal agents raided the club’s offices while probing its finances. The club’s executive director at the time was ultimately charged with filing false personal tax returns. The twin calamities of flooding and the pandemic in 2020 eliminated regular hours for the establishment.

The lender claims the club also owes the restaurant and bartenders employee union, the city Environmental Control Board and the New York State Department of Labor.

— Holden Walter-Warner