Another newer apartment building in Detroit has officially fallen back into the hands of its lender.
The former City Club Apartments CBD Detroit was sold in receivership to an entity connected to its lender, ACRE Credit, and Sequel Cos. for $75 million, according to Frank Simon, the receiver on the property.
The 288-unit development at 313 Park Ave. was built by Jonathan Holtzman’s now-defunct City Club Apartments LLC and opened in the summer of 2021.
The building fell into receivership in August 2025 after an affiliate of City Club Apartments defaulted on a $78.5 million loan. San Francisco-based Situs Holdings LLC, a special servicer acting on behalf of ACRE Credit, said a November 2020 loan of $78.5 million, which in April 2021 was increased to $84 million, had not been repaid. The loan matured in February 2025, according to the lawsuit, and the total amount due is $86.8 million, not including attorney fees.
Holtzman said a confluence of factors contributed to losing control of the property, including encountering an unremoved foundation of the former Statler Hotel, unexpected work for which he was not reimbursed; a lawsuit from the property’s general contractor; and the COVID-19 pandemic causing the loss of thousands of jobs and other issues for Detroit’s downtown core.
“The city increased population, but downtown has lost 15,000 jobs,” Holtzman said. “That is everybody’s renters. Every one of the apartment projects has low occupancy, concessions, default, foreclosure, and it’s not a good trend. Where are the jobs?”
Holtzman also said he objected to the sale at its $75 million price tag because there had been an appraisal valuing the property at approximately $110 million.
“Obviously the entity that bought it is optimistic that they will grow the value from $75 million to $90 million or $100 million-plus,” Holtzman said. “Unfortunately for me and my partners and investors, we lost a lot of money. We invested a lot of money, a lot of time, created a great asset, but there were things that were out of our control.”
Following City Club’s collapse, the apartment building is now dubbed the Arcterra and is managed by Village Green. The property also includes retail space and an underground parking structure on the site of the former Statler Hotel on Grand Circus Park downtown. The building was previously home to The Statler Bistro, which the Joe Vicari Restaurant Group closed in mid-2025 with plans to relaunch as a Hamlin Pub.
Simon, of Troy-based Simon PLC and Simon Property Disposition LLC, handled the receivership sale. In a LinkedIn post, he said the property was 96% occupied at the time of the sale last week. Other than confirming the new ownership entity as consisting of ACRE and Sequel, he declined to comment on Monday.
ACRE has offices in New York City, Atlanta, Miami and Singapore. Sequel Cos. is based in New York, as well, and is run by Jordan Sasson, a University of Michigan graduate who spent more than a decade working for Related Cos., the development company founded by Stephen Ross.
Messages were left with ACRE as well as Sequel seeking comment on Monday.
Holtzman isn’t the only multifamily owner to struggle in recent years.
Some of the other newer apartment buildings in Detroit to face the financial woes plaguing segments of the multifamily market in the cityinclude Lafayette West in the Lafayette Park neighborhood, which was taken back by its lender, and the Kean, Hibbard and Trombley Lodge apartment buildings on East Jefferson Avenue, which fell into receivership.
