But CCA aims to build and hold. And instead of financial entities out for a relatively quick gain, “the people living in the community are the real customers,” he says. “If you're managing for the long-term, your renters will drive the decision-making.”

And Holtzman has big ambitions for CCA. “We're going to set the trend.” Furthermore, although the company currently has a Midwest focus, “we will be going international with the brand,” and that will eventually include projects in Europe and Asia. “It's the beginning of the next 100 years of a company that has been innovating, elevating and creating since 1919.”

CCA had only 20 employees one year ago, but Holtzman plans to bulk it up to more than 275 people by the end of 2017. Recruiting hospitality experts has been a particular focus. Don Gillette, its new senior vice president of people and culture, for example, just joined the company after nearly five years with MGM Resorts and 15 years with Four Seasons.

“The hotel industry works 24 hours a day to make the customer happy,” says Holtzman. But apartment developers in general have not made that a priority. Property managers are not “compensated and trained the way Hyatt and Four Seasons do for their people.” CCA personnel will, however, be well-compensated, and even receive quarterly bonuses based on customer satisfaction. “This is a luxury brand, and customers deserve personal service.”

Tomorrow: Holtzman sketches out his larger vision for City Club Apartments.

CHICAGO— City Club Apartments chief executive officer Jonathan Holtzman wants to transform how luxury apartments are developed and managed, and last week his new firm reached a milestone. It began directly managing five of its 30 properties on May 1, and by year's end will manage the entire $2 billion, 10,000-unit apartment and penthouse portfolio. But Holtzman has even bigger plans for the future.

He created the Farmington Hills, MI-based company last year by selling his 50% interest in Village Green Holding Co. to Compatriot Capital, Inc. Village Green specialized in transforming historic structures into luxury apartments and mixed-use communities. Soo Line City Apartments in Minneapolis and Randolph Tower City Apartments in Chicago are just two examples of how the company brought new life to urban neighborhoods.

Under the agreement, Holtzman acquired most of Village Green's real estate assets and its entire $500 million development pipeline, which consists of six mixed-use communities. His family had run Village Green for generations, but after decades in the business, he believes things needs to change.

“The leading developers build to sell, and that means for them, capital is the customer,” Holtzman tells GlobeSt.com. “They are not rewarded by great customer service, they are rewarded by great financial success.” To the pension funds and life insurance companies that frequently fund new apartment construction, success means getting solid returns after only a few years. And that means communities built with an eye on short-term sales prices or cap rates rather than the communities' long-term values or overall health.