This article was originally published Oct. 5, 2015. The CBJ is revisiting some of the biggest stories from the last 20 years, in celebration of our anniversary.
The Corridor real estate scene gained a new player virtually overnight on Oct. 1, 2015, when some 37 established real estate agents started Urban Acres.
The new Iowa City-based firm represents a different ownership structure than most, with each real estate agent contributing equity and becoming a partner in the limited liability corporation.
Ernie Galer, a former office manager and broker for Lepic-Kroeger Realtors, is Urban Acres’ broker. A board of directors will oversee the company, which is based at 1519 S. Gilbert St.
“We all have a say in it – we all have a share, and it pushes us to serve our clients better,” said Mitch Price, one of the partners.
Urban Acres expects to have agents in both the Iowa City and Cedar Rapids multiple listings services (MLS), and isn’t affiliating with a real estate franchise such as Coldwell Banker or Century 21, according to Mr. Price. He said its current office space is constrained, and the company may open additional branches or locations later.
Urban Acres was selected as the brand to convey the firm’s focus on both urban living and country living options in the Corridor, according to a press release. Urban Acres emphasized its local roots, the experience of its agents and their established connections, noting that its agents generated well over $200 million in sales in 2014.
“We are a new company, but our agents are not new to the market,” said Andrea Hicks, a Swisher native and Iowa City resident. “In fact, they are among the elite in the area. We have spent decades building relationships with clients and with lenders, appraisers, developers, inspectors and stagers in the area. Now we want to bring that expertise to a company where we are all share ownership.”
The startup involved a mass departure of agents from Iowa City-based Lepic-Kroeger Realtors.
In a prepared statement, Lepic-Kroeger managing partners Mike Jensen, Jeff Dill, Jeff Edberg and Terri Larson wished them well.
“Lepic-Kroeger Realtors, a community leader in real estate sales for the past 43 years, congratulates the newly formed Urban Acres group of realtors as they embark on the opening of their firm,” said the statement. “The agents were formerly associated with LKR, contributing to the tradition of success, reputation and trust LKR has worked hard to earn. The current agents and staff at LKR wish them every success, and look forward to working with them in providing our area clients the best possible real estate services.”
In an interview, Mr. Price acknowledged that the startup members came over en-masse to form the company, but had nothing negative to say about Lepic-Kroeger.
“Ultimately, what it came down to was we had an opportunity to own our business, to start our own company,” he said. “We appreciate our time with Lepic-Kroeger, and we intend to work with them in the future.”
Urban Acres launched its marketing with a flurry of social media posts and a website that profiles the personal and professional backgrounds of its agents, but initially did not include its listings.
Lepic-Kroeger’s website continued to list over 50 agents, while the largest Corridor real estate firm, Skogman Realty, lists 185 agents – 38 of them based from its Coralville office.
