Historic Midtown hangout the Friars Club found a surprising buyer: Gary Barnett’s Extell Development.
The six-story club on 57 East 55th Street went into contract with Extell for $19 million, The Commercial Observer reported and sources told The Real Deal. Kairos Investment Management sold the club, which once counted A-listers like Johnny Carson, Jimmy Fallon and Joan Rivers as members.
Barnett’s bid beat out a hospitality operator, foreign consulates and a group of crypto investors seeking to turn the Friar’s Club into a private club, dubbed the Crypto Castle. Bob Knakal and Tom Brady of BKREA brokered the deal on behalf of Kairos.
But what will Barnett do with the famed social club?
Extell has been quietly assembling properties on Park Avenue between 54th and 55th Street. Earlier this year, TRD reported that Extell was under contract to acquire 407–417 Park Avenue and 405 Park Avenue. Barnett has also been in talks to acquire an adjacent office building at 110 East 55th Street. Extell could build 527,000 square feet of development as-of-right on the Park Avenue properties, or up to 700,000 square feet of rentable office space with additional air rights, according to marketing materials.
Industry speculation is that Barnett strategically acquired the Friars Club to add something to his assemblage. It’s not obvious what that something is.
The Friars Club’s location is across the street from the parts of Barnett’s other proposed acquisitions. Barnett has been narrowly focused on buying up a corridor around 54th and 55th Street, on the same block as Central Synagogue. The Friars Club, however, sits across Park Avenue and one block up 55th, closer to Madison Avenue.
It’s also unclear whether the Friars Club has any air rights left. The Friars Club sold off 25,000 square feet of air rights in 1982. (The Commercial Observer reported the Friars Club recaptured 803 feet of transferable air rights in 1992.)
Lastly, the Friars Club facade is landmarked. It cannot be torn down to pave way for a new development.
If air rights are not the play, there are three other possibilities.
Could Barnett be seeking to build something surrounding the Friars Club, which is sandwiched between two towers? It seems unlikely since the building is landmarked.
The second option is Barnett, the man behind one of New York City’s most active development firms, simply saw a chance to buy and renovate the Friars Club into something flashier, such as a private residence or another members-only club.
The third option is the most intriguing. The Promote previously reported Barnett could be looking to acquire the 54th Street property that houses The Brook, a secretive and elite private club. The Brook is adjacent to 405 Park Avenue, a site Barnett is under contract for.
The Brook, whose members reportedly included Fred Astaire and John Jacob Astor, would likely need to be acquired by Extell in order for the developer to construct its next high-rise.
The Brook resides in a century-old building at 111 E 54th Street. The five-story building’s size is similar to that of the Friars Club. Yet, the Friars Club is noted for the beauty of its interior, including its curved wood staircases and stained glass windows.
The Promote speculated that Barnett could offer The Friars Club as a new home for The Brook.
The 14,541-square-foot interior of the Friars Club is not landmarked, allowing the new owner to remodel the space. And for $19 million, Barnett would get a steal at the returns he yields from the Park Avenue mega-development he seeks.
Whatever Barnett decides to do, it will add a new chapter to the historic home of the Friars Club.
Founded in 1904, the club was famous for its celebrity roasts, but over the years became hounded by financial challenges. The Friars Club closed in 2020 amid the pandemic and a flood. In 2023, the club’s lender Kairos alleged it defaulted on a $13 million loan. Greg Corbin’s Northgate Real Estate Group was hired to market a foreclosure auction. In late 2024, Kairos acquired the property in a $17.2 million credit bid.
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