The Art Institutes, a chain of private, for-profit colleges, plans to cease operations this week and vacate prime real estate in Atlanta, Houston, Miami and five other U.S. markets.
The Art Institutes announced the closing on its website, saying its remaining eight campuses will shut this coming Saturday. The college system’s owner, Education Principle Foundation in New York, did not respond to a request to comment.
Campuses in eight markets are run by the Art Institutes: the Texas cities of Dallas, Houston, San Antonio and Austin; the Florida cities of Tampa and Miami; Virginia Beach, Virginia; and Atlanta. The Art Institutes had active leases covering at least 413,700 square feet in all eight markets combined, according to CoStar data.
The Art Institutes and its predecessor owners have been involved for years in litigation over student debt from education loans, according to media reports. Some Art Institute campuses have struggled to retain accreditation and almost four-dozen campuses have closed since the Art Institute was founded in 1969.
In a message to students posted on its website, the Art Institutes said, “We encourage you to complete your education at another school. The Art Institutes are working with numerous partners to facilitate student transfers. Transfer means you may be able to use the academic credits you have earned at The Art Institute toward the completion of a similar or different program of study at another school.”
The Art Institutes sent an email to students saying the college system's closure is the result of "a culmination of events over the past decade, both external and internal to the campus operations. ... The colleges, which already were dealing with the legacy challenges that arose under prior ownership, were unable to absorb the impact that the COVID-19 pandemic had on schools teaching hands-on and equipment-intensive programs such as culinary arts and fashion design.”
The 114,759-square-foot campus in Atlanta at 6600 Peachtree Dunwoody Road was listed as available for lease on Sept. 5 by the building’s owner, Bridge Commercial Real Estate. Bridge CEO Jeff Shaw told CoStar News that the Art Institute was the building's only tenant.
“It’s a very unique and attractive Class A office building” with a parking deck, café, direct access to Georgia Highway 400 and is a short walk from a public transit rail station, Shaw told CoStar News.
Representatives from Northwood Investors, which owns the Dallas location, and Armada Hoffler, owner of the Virginia Beach campus, declined to comment. Other campus property owners and landlords for Art Institute locations did not respond to requests to comment.
Here are the Art Institute locations that will close, with square footage, address and landlord information from CoStar data:
- Atlanta campus: 114,759 square feet at Embassy Row at 6600 Peachtree Dunwoody Road. Building owner: Bridge Commercial Real Estate.
- Austin-area campuses: 9,110 square feet at 921 Main St. in Bastrop, Texas, which is about 30 miles southeast of downtown Austin. Building owner: John P. Donovan. And 11,000 square feet at 1204 Chestnut St. in Bastrop.
- Dallas campus: 20,491 square feet at the Offices at Park Lane at 8080 Park Lane. Building owner: Northwood Investors.
- Houston campus: 77,967 square feet at 4140 Southwest Freeway. Building owner: Medistar.
- Miami campus: 64,250 square feet at 1501 Biscayne Blvd. Building owners: Turnberry Associates and LeFrak. The Art Institutes’ Miami campus operated under the name Miami International University of Art & Design.
- San Antonio campus: Size unknown at Colonial Center in Northwest San Antonio. Building owner: Hanover Real Estate Partners.
- Tampa campus: 91,125 square feet at Parkside at 4401 N. Himes Ave. Building owner: Highwoods Properties.
- Virginia Beach campus: 25,000 square feet at Two Columbus Center at 4500 Main St. Building owner: Armada Hoffler.