The Arco Palais was re-built in Neo-Baroque Art Nouveau style by the architects Georg Meister and Oswald E. Bieber in 1910. Previously, the most significant building of the Louis XVI period, the Palais of the old Bavarian noble family Reinstein-Tattenbach, was located here at the corner Theatiner Street/ Maffei Street. A cabinet of the Palais, which was demolished in 1910, is still exhibited in the Bavarian National Museum.

Arco Palais was initially commissioned by the family Count Arco auf Valley, who had been the owners of this building from 1821 until 1937. The counts Arco are an old and free noble family originating from the Prince-Bishopric of Trent in today’s Trentino South Tyrol region. The ancestral home of the lords of Arco was Castle Arco in the North of the Lake Garda.

Until 1928, the Thannhauser Modern Gallery had its headquarters in the Arco Palais. Here, the three famous exhibitions of the New Artist Community Munich as well as the first exhibition of the “Blauer Reiter” school took place in 1911; Gabriele Münter, Wassily Kandinsky, Paul Klee, August Macke and Franz Marc , among others, had exhibitions here.

The Arco Palais is not to be confused with the Palais Arco Zinneberg, which is located close to the Wittelsbacherplatz. Today, the Arco Palais is owned by the Wittelsbacher Compensation Fund.

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