Greenfire Development’s subsidiary The Hill LLC sold the 17-story building at Main and Corcoran streets to 21c Durham LLC, a subsidiary of 21C Museum Hotels of Louisville, Ky., for $5.25 million on Feb. 8.

The 21c company plans to renovate the Hill Building, also called the SunTrust Building, along the lines of properties it already operates in Louisville, Cincinnati and Bentonville, Ark.

Economic incentive agreements with the city and county describe the project as an “upscale hotel” with approximately 125 rooms, restaurant/bar and museum showing curated, rotating exhibits of “museum-quality” contemporary art that is open free to the public 24 hours a day.

The 21c company estimates its renovation will cost $48 million, including $500,000 for a permanent art collection.

The city is providing $5 million and Durham County $2 million, contingent upon construction starting by June 30 and completion, with occupancy permit, by July 1, 2015. Both incentives are to be paid over a period of years, during which time the hotel must remain in operation.

Terms also require that 21c make its own capital investment of at least $33.6 million and meet occupancy and tax-revenue standards.

Jack Daniels heiress Laura Lee Brown and her husband, Steve Wilson, art patrons in Kentucky, formed the 21c company in 2006. That is the same year Greenfire bought the Hill Building, paying $4.1 million and announcing its own plans to convert its banking and office space into a posh hotel, but the Durham company was never able to secure financing.

Greenfire is retaining a financial interest in the 21c Durham hotel.

Opened in 1937, the art deco Hill Building was commissioned by Durham banker John Sprunt Hill to house his two family-owned banks and insurance company. The New York firm of Shreve, Lamb and Harmon, which had earlier produced the Empire State Building, designed the building.

Hills’ banks later became Central Carolina Bank, which SunTrust acquired in 2003 along with the building. SunTrust sold the building to Greenfire rather than renovating the building to meet new fire codes.