The Standard Club, wracked by operating losses and declining membership, is closing May 1.
The question is whether it will survive in any form.
The club said it hired commercial real estate firm CBRE to seek potential buyers for all or part of its 13-story building at 320 S. Plymouth Court.
"We are optimistic that we will find a partner with whom we can enter into a synergistic business relationship," the club said in a statement after inquiries by Crain's.
The nearly century-old structure, needing costly upgrades, is an albatross, according to a former club president.
Someone professing knowledge of the situation said the building is worth an estimated $15 million and its artwork another $1 million.
Even though the club’s debt is less, a purported $7 million, this person says, “It’s obvious a liquidity event is necessary. The question is if anything can be worked out to save part of the facility for use by the members.”
A vintage building like it would lay out well for a boutique hotel, according to Michael Reschke, whose Prime Group has been converting Loop office buildings.
“It’s the hottest submarket in the city right now,” he said before the announcement. “If they do put it on the market, we would take a look at it.”
The location south of the federal courthouse is solid but not “premium Class A,” said another converter, John Murphy, who redid the Oriental Theatre and the Chicago Motor Club buildings. “As a land site it might be worth more than the building itself.”
In its statement, the club said, "Unfortunately, the club has recently faced challenging business circumstances similar to those that have faced many urban private clubs in terms of membership, usage and revenue. . . .We expect that there will be a transition period and our hope is eventually a new home for a new type of club that continues to reflect our shared traditions, values, and camaraderie."
2020-03-05 11:11:37Z
https://www.chicagobusiness.com/nonprofits-philanthropy/standard-club-closing-may-1
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