Extell, the developer behind some of New York’s high-profile supertall buildings, has bought the landmarked five-story Friars Club building in midtown Manhattan.
Extell scooped up the property at 57 E. 55th St. for $19 million, Bob Knakal of BKREA investment sales brokerage in New York, told CoStar News. Knakal represented the seller, Kairos Investment Management. Kairos bought the property in February for $15 million in a foreclosure auction, CoStar data shows.
The property is commonly referred to as the Friars Club building since it served, from 1957 until its closing, as the longtime home of the iconic private organization known for its celebrity roasts, an appearance in a "Seinfeld" episode, and famed members from Frank Sinatra to Jerry Lewis. The century-plus-old club shut in 2024, hurt by the impact of the pandemic and other issues including financial troubles and a burst pipe, according to media reports.
The structure, built in 1908-1909, was originally the Martin Erdmann House, named after the wealthy retired banker who bought it for $300,000 on July 21, 1909, according to the Landmarks Preservation Commission.
The LPC designated the property an individual city landmark in 2016. At one point, it also served as the home of the American Institute of Physics before the Friars Club bought it in 1957, according to the LPC, which described the property as “an outstanding example of a fashionable English Renaissance Revival townhouse” and “a rare survivor of the time when the area around Fifth Avenue was an affluent residential neighborhood.”
Historic details intact
The property features design details including an all- limestone facade, a ground-story arcade, Tudor-style windows with stone mullions, decorative relief panels, a steep front-facing gable, and multiple chimney pots, according to the LPC, adding the property “remains remarkably intact to its original design, despite several minor alterations.”
“You felt like you were in a real piece of New York history when you were in that building,” Knakal told CoStar News. “It is as quintessentially New York as you can get.”
Before showing the property 60 to 70 times to prospective buyers as part of the marketing process, Knakal said he had also been invited to speak at the club on two occasions.
The property’s historical significance, location and architectural detail helped generate an “overwhelming” amount of interest, Knakal said.
BKREA marketed the property to “every user group” from brokerages to developers, he said. The restrictions that come with the property’s landmark status didn’t dampen demand, with interest coming from a wide range of potential users, including private clubs, a cryptocurrency organization, foreign governments, restaurants, a food-and-beverage operator with a small boutique hotel component, and a nonprofit.
“Extell stepped up and paid the highest price” among about 25 offers, he said, adding the property has no remaining air rights.
Market ‘improving significantly’
The deal signals that “the market in New York is improving significantly for every property type, except rent-regulated apartment buildings,” Knakal said.
The property totals just over 14,500 square feet, CoStar data shows.
Extell didn’t respond to CoStar News requests seeking comment on the developer’s planned use of the property.
The developer is known for supertall projects such as Central Park Tower along Billionaires’ Row. Recently, it also filed plans with the Department of Buildings for what could become the Upper West Side’s tallest tower.
Earlier this year, Extell, founded by Gary Barnett, also bought development sites at 405- 415 Park Ave., between 54th and 55th Streets across Park Avenue from the Friars Club building, for $485 million, according to CoStar data.