Logic doesn't exist, except as a tool of human thought (or rather, as a basic expression of the human experience of reality). But so what?
Ironically, indeed, your friend was using logic to argue with you:
1. All valid concepts have a material referent (implied)
2. Logic does not have a material referent (explicit)
C: Therefore, logic is an invalid concept. (implied)
And in doing so, was comically defeating himself.
As for his argument (such that it is): Premise two is flatly false. Logic itself isn't a "concept". It's a process or methodology for validating claims about reality, that is derived from valid concepts. Since the fundamental rules of classical logic are derived from the consistently observed behavioral properties of objects in reality, the rules themselves are valid concepts:
1. The Law of Identity: (A = A) An object is the same as itself.
2. The Law of Non-Contradiction (A != !A): An object cannot be and not be, simultaneously.
3. The Law of Excluded Middle (A | B): Where two statements are contradictory, one must be true and the other must be false.
a fourth rule has been infered from the prior three, in classical logic:
4. The Law of Bivalence (A | !A): Every statement will necessarily either be true, or be false.
At the level of sense perception, all objects will obey these laws. So, the laws that constitute the methodology of classical logic are valid expressions of the behavior of matter at the sense perception level, and are therefore individually valid concepts, and therefore, classical logic is indeed a useful method for understanding reality.