Buyer plans to make Three Arts building a hotel
By Thomas A. Corfman
Feb. 28, 2007

Developer Mark Hunt is about to buy the shuttered Three Arts Club building, with plans to convert the landmark Gold Coast structure into a trendy hotel. Mr. Hunt confirms that he has already had discussions with several hotel firms about the four-story building at 1300 N. Dearborn Parkway.

One prospect is SoHo House UK Ltd., the London-based private club and hotel that is looking to expand, he says. SoHo House has a location in New York and plans to open another in Miami Beach, Fla., next year. We have talked to a handful of groups, says Mr. Hunt of Chicago-based M Development LLC. Small boutique hotel, that’s the direction we are going in.

He says he expects to close on the purchase on Wednesday. The price is about $13 million, sources say. The 110-room dormitory was a residence for female artists until it closed in 2003 by the namesake non-profit group that owns it.

Mr. Hunt says he is planning a complete renovation of the building, which was constructed in 1914 and designed by architectural firm Holabird & Roche, which also designed the City Hall-County Building. The Three Arts Club building was designated a landmark in 1981.

The sale to Mr. Hunt replaces an earlier deal to sell the property to Chicago investor Fred Latsko. After that deal collapsed, the Three Arts Club formally put the property up for sale in November, hiring Cushman & Wakefield Inc.

The Club has said it plans to use the proceeds from the sale to fund art programs and make grants to women artists.

Craines Chicago Business
Alby Gallun contributed to this report.
3/4/2007