Billionaire Ron Burkle buys trendy Soho House in the Meatpacking District
Money man paid between $200 and $250 million: sources
Friday, December 9 2011, 9:39 PM
Billionaire investor Ron Burkle just added a dose of cool to his portfolio of assets.
Burkle's Yucaipa Cos. bought the majority interest in Soho House, the posh members-only private club hotel with locations in London, Berlin, New York, Miami, and Hollywood.
Sources say Burkle paid between $200 and $250 million, purchasing shares from the club’s founder Nick Jones and British restaurateur Richard Caring.
Looking to acquire the building that houses the club, Burkle is in negotiations to buy the Meatpacking district property listed for $57 million.
The building at 33 Ninth Ave. was being marketed as a potential office conversion by Jones Lang Lasalle. Commercial and retail rents in the area recently soared with ground floor retail fetching as high as $500 per square-foot. Still, some real estate experts thought the building overpriced.
A source close to Burkle reports that Soho House management and brand positioning will stay intact with founder Jones continuing to run day-to-day operations.
A long-time Soho House member, Burkle is a known fan of the brand. The same source told the News Burkle "purchased the majority interest because he loves the brand and management and wants to help it grow."
Soho House New York recently went through a member purge, not renewing hundreds of memberships for people working in finance or less creative industries. One source inside the club said, "They wanted to get rid of cheesy people."
Last year, the club was in the news when beautiful bathing suit designer Sylvie Cachay was murdered on one of the club's hotel floors.
Management recently redesigned the club's sixth floor clubroom and restaurant, featuring a fireplace and red banquettes reminiscent of a 1920s boudoir.
Burkle, who owns real estate across the country, is no stranger to the hospitality sector.
He owns a major stake in Morgans Hotel Group, a top boutique brand. He recently paid $62 million for 430 West 14th St., the Meatpacking office building that includes the full blockfront inhabited by Hogs & Heffers and retailer Scoop.
Burkle, who lives in London, could not be reached for comment.
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