Dive Brief:
- CBRE is marketing a 292-unit apartment property in Cincinnati after the asset was placed in receivership, according to the Cincinnati Business Courier. The property, formerly known as City Club Apartments CBD Cincinnati, is now known as the Parisian on Vine.
- The property went into receivership after Atlanta-based ACRE Credit Investments filed a foreclosure lawsuit against CCA CBD Cincinnati LLC, an affiliate of an affiliate company of Detroit-based City Club Apartments, in June, according to the Cincinnati Enquirer.
- CCA CBD Cincinnati LLC owes $79 million on the loan. Jonathan Holtzman, founder and CEO of Detroit-based City Club Apartments, as the loan's guarantor, is liable for $7.1 million, according to the Cincinnati Business Courier. Dallas-based Trigild is the property's receiver.
Dive Insight:
Holtzman opened City Club Apartments CBD Cincinnati in 2018 after converting it from office space, according to the Cincinnati Business Courier. The outlet reported that financial troubles have forced Holtzman to walk away from multiple deals over the past two years.
CBRE declined to comment on the property, and City Club Apartments didn’t reply to Multifamily Dive’s request for comment.
Earlier this year, Crain’s Detroit Business reported that Holtzman, whose portfolio was once over $2 billion, had lost control of properties in Cleveland; Chicago; Louisville, Kentucky; and suburbs around its home base of Detroit. After those issues, Holtzman told the outlet his company no longer existed.
Conversions in other cities from different developers are also running into issues. Baltimore-based Chasen Cos.’ One Calvert Plaza office tower conversion went into default on a $34 million loan for the building in June 2024.
One Calvert Plaza was initially constructed in 1901 as Baltimore’s first high-rise office building, according to Lanham, Maryland-based commercial real estate services firm NAI Michael.
Chasen bought the historic 15-story building for $11.1 million in 2022 with plans to convert it into apartments. The property comes to the market with fully approved architectural plans and construction drawings.
In April, an LLC controlled by Philadelphia-based PMC Property Group defaulted on a $16.4 million loan to renovate 301 N. Charles St., according to The Baltimore Banner. The 11-story building was once home to the Baltimore Life Insurance Co.
