The Purple Hotel is located at the corner of Lincoln and Touhy Avenues.


4500 W Touhy Ave
Lincolnwood, IL 60712

Battle Ensues for Control of Purple Hotel

Robert Carr
13 Jan, 2012
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LINCOLNWOOD, IL-The Purple Hotel continues its infamy, as the buyer for the loan on the property has been stymied by the owner filing bankruptcy. North Capital Group acquired the $4 million notes from First Midwest Bank, but owner Village Resorts Inc., under control of the Bae family, has filed for bankruptcy, halting any decision on the property.


The hotel, at the intersection of Touhy and Lincoln avenues, was built in 1960 as the Lincolnwood Hyatt House, and attracted a number of popular performers of the day. However, mob influence in the area took its toll, as Teamster Allen Dorfman was murdered outside the hotel in an alleged hit. The name comes from the color of the 293-room hotel.


 Randy Podolsky

 with Podolsky Northstar Corfac International, who represented First Midwest in the sale of the two notes, tells GlobeSt.com that the property could hold a terrific mixed-use project that could benefit from a desirable location. The village started the process to tear the site down, but seemed willing to wait out the note sale. North Capital has reportedly expressed interest in keeping part of the facility intact in a redevelopment.


Now with the bankruptcy, the process is again on hold. “The owner has to file a reorganization plan within 90 days of the filing, the clock is ticking,” Podolsky says. “If they can’t come up with a defensible plan, the foreclosure action will likely be allowed to move forward.” He says he thinks North Capital should be able to gain the site by July. “Rarely do these cases last more than a year,” Podolsky says.

Take a Tour Inside the Infamous Purple Hotel

Take a look at some of the galleries we found on the web with pictures of the Purple Hotel in its current state.


On Flickr