The Detroit City Council has given site plan approval for construction of the first new multifamily building downtown in 25 years.

Construction on the 235-unit Statler City Apartments by Farmington Hills-based Village Green Cos. is expected to begin in the second quarter next year and be completed in the fourth quarter of 2017.

Leasing is expected to begin in the fourth quarter next year.

A year ago, the Downtown Development Authority authorized the Detroit Economic Growth Corp. to negotiate a development agreement for Statler City, which is planned for Washington Boulevard and Park Avenue on the site of the former Statler Hilton Hotel at Grand Circus Park.

The development is expected to cost $35 million to $40 million. Exact numbers of studio, one- and two-bedroom and penthouse units have not yet been determined.

“This is a milestone for the city of Detroit,” Village Green CEO Jonathan Holtzman said in a statement. “It’s just the beginning of a wave of new rental housing development downtown, and having the overwhelming support of the City Council indicates this is exactly the type they want.”

As part of the project, Village Green will dedicate $50,000 to improvements in the neighborhood immediately surrounding the development.

Statler City is expected to include a market and/or restaurant, concierge services, indoor and outdoor pools, a fitness center, business center, conference room, zen garden and courtyard park, and a club room with a bar, televisions, fireplace and a gourmet kitchen, according to a news release.

Statler City would be Village Green’s fourth downtown multifamily project, following Detroit City Apartments near Grand Circus Park, Elmwood Park Plaza at Chene and East Larned streets and the Renaissance City Apartments at Millender Center on Brush Street between Congress and East Larned.

The combined investment of Village Green's downtown projects, which have more than 1,250 units, is $135 million, according to a news release.

Village Green’s management portfolio includes 40,000 units in 130 apartment communities across the country with a combined value of $4.5 billion.