Ann Arbor’s First Martin Co. is out of the apartment management business, 35 years after the company built two rental complexes on the city’s south side.

The company hired Village Green, based in Farmington Hills, to take over management of Homestead Commons and Mill Creek Townhouses in December.

Village Green manages 38,000 apartments in 13 states, including 9,650 in Michigan. Its Michigan portfolio grew by 1,000 units in 2009, thanks to the addition of four properties - including the two owned by First Martin, which total a combined 393 units.

The company also operates three other properties in Ann Arbor - including Surrey Park - and plans construction of Ann Arbor City Apartments downtown.

The decision to hire Village Green was influenced by the impact of the recession on the apartment industry, said Chris Grant, vice president at First Martin.

Nationally, the apartment vacancy rate hit a 30-year high at the start of the year.

That, Grant said, adds complexity to the management business that gives an edge to larger operators, while putting self-managed complexes at a disadvantage.

“Village Green is a high-quality management agent, and they can add value to the property,” Grant said.

That includes plugging the properties into the larger Village Green operating systems, such as purchasing and staff training programs, and also leasing advances, such as new smartphone applications.

Jonathan Holtzman, CEO of Village Green, said the American consumer is changing, and as a result is coming to the rental process more educated about the market than ever before.

“The renter is deciding: Is this a commodity or am I getting some value for my dollar?” Holtzman said.

As a result, he said, “for the first time, the more professional owner or management companies can do more for the customer than the smaller, private owner-operators.”

One example, he said, is Village Green’s recent move to become the first private management company to adopt mobile search and leasing capabilities.

The transition for the First Martin properties was smooth, Grant said, with most employees retained.

According to the Village Green Web site, the First Martin apartments rent for $695-$1,100 per unit. Eight are listed as available in each of the communities.

Meanwhile, First Martin’s office “is really established to managed our commercial properties,” Grant said.

The company operates about 1 million square feet of office and retail space in Ann Arbor, including Traverwood on the northeast side and the First National Building downtown.

Paula Gardner is Business Director of AnnArbor.com, where she covers real estate and development. Contact her by email or follow her on Twitter.