Ron Burkle has unloaded his stake in the building containing Soho House, the members-only celebrity hangout at Ninth Avenue and West 13th Street.
The Yucaipa Cos. founder sold his stake to his partners, Joseph and Michael Cayre of Midtown Equities, for $67 million.
The top floors of the six-story building at 33 Ninth Ave. in the Meatpacking District are long-term leased to the Soho House club. Burkle became its majority investor in 2011 and soon formed a joint venture to buy the building with the Cayres.
According to a Yucaipa spokesman, Burkle originally joined with the Cayres on the purchase in order to create a more favorable Soho House lease.
“He made money on the transaction,” the spokesman added, noting that values have risen in the area.
The parties paid $82.2 million in 2012 for the entire 86,000-square-foot building. The club has locations in London and other parts of England, Berlin, Toronto, Miami, Chicago and West Hollywood and upcoming ones in Istanbul, Mumbai and Barcelona.
Restaurant Spice Market is also a tenant in the two-story retail space.
In 2013, the partners legally divided the property into a two-story retail unit and the four-story commercial condominium — as was contemplated during their original venture.
The Cayres’ purchase, made in January and filed with the city last week, also allowed the family to source additional funds. According to Law360, Rockpoint Group provided $22.5 million.
This likely went toward the equity for the purchase from Burkle. A previous Safra National loan for $45 million mortgage was also replaced by Mesa West with loans totaling $60 million.
Another $45 million for the commercial piece was obtained from Cantor Commercial Real Estate.
