Princeton Club of New York Sells for $8M

A shell company purchased the Manhattan property for roughly $125 per square foot. In October 2021, C+RB reported that the club defaulted on its $39 million mortgage. The club was closed for 15 months during the height of COVID and reportedly lost about one-third of its 6,000 dues-paying members.

A shell company—15 West 43rd Street LLC—has purchased the Princeton Club of New York for $8 million. Crain’s reported that price is roughly $125 per square foot, while The Real Deal reported the transaction closed late last month, two months after a foreclosure auction outside Manhattan’s Supreme Court.

Club + Resort Business has been closely following the saga. In October 2021, C+RB reported that the club defaulted on its $39 million mortgage. The club was closed for 15 months during the height of COVID and reportedly lost about one-third of its 6,000 dues-paying members.

The debt was being sold to the highest bidder, who could ultimately force the club’s exit and repurpose the 10-story building in Manhattan. The Princeton Club explored a sale and asked Princeton University for help, but it has no financial relationship with the school, unlike other Ivy League clubs in the area.

The following month, C+RB reported that Princeton Club of New York closed “indefinitely.” Shortly after reports surfaced that the private club was about to default on its mortgage debt, club President Christine Loomis sent an e-mail to members informing them that “we do not have the money to continue to operate” and that the club, which traces its origins to 1866, would now have to wait to see if its mortgage note is sold at auction and the buyer will provide financing to reopen. The club’s appeals to Princeton University for assistance have gone nowhere (unlike clubs for other Ivy League schools, it does not have an affiliation with the university). Members will be able to access the Cornell Club, Penn Club and other reciprocal locations.

Shortly after The Princeton Club defaulted on its mortgage, the limited liability company purchased the defaulted loan from Sterling National Bank, which had granted the club six months of forbearance, The Real Deal reported.

Last year, the note holder sued to foreclose on the Midtown property, The Real Deal reported.

C+RB reported in June 2022 that foreclosure was imminent. Tax records show the club had liabilities of $49.4 million against assets of $30.3 million by the end of 2019.

In recent years, the club — which has been operating in some capacity since the 19th century — reportedly lost a third of its due-paying members, The Real Deal reported. Annual dues in 2019 ranged from $350 for new grads to $3,255 for alumni 15 years out of school.

It’s unclear what the buyer’s plans are for the club, The Real Deal reported. The property includes 58 guest rooms, two restaurants, a gym and a pair of squash courts.

Ownership behind the shell company could not be determined, The Real Deal reported. The signatory on the deal was Kelly Zelezen of the law firm Kleinberg Kaplan, according to PincusCo. Zelezen did not immediately respond to a request for comment from The Real Deal.