Lansing plans to sue Sycamore Apartment owners

Lansing plans to take the owners of one of the city’s largest apartment complexes back to court to ask for a receiver to be returned after the property owners allegedly missed deadlines for improvements.

The Sycamore Townhomes property – with 339 apartments – was under a court-appointed receiver after legal action from the city in 2024. The receivership ended with an agreement to invest more than $16 million into the property to bring units up to code under a timeline. That timeline was approved in April 2025 and the receivership ended in March 2026.

The renovation was expected to lead to 120 units opening in September 2026, part of a phased-in process.

The city alleges that work has stopped and the units have not been fixed by the mortgage company that was included in the legal actions, Arbor Mortgage.

“Since Arbor took over from the receiver, the required renovations have stalled and Arbor has failed to deliver any units,” the city said in a statement Friday. “No meaningful progress has been made on the required refurbishment. This large housing complex continues to sit vacant, making further court action and a request for a new receiver necessary.”