Capturing market share through relationships, services.

When Igal Feibush and Andrew Heiberger decided to open their own residential brokerage firm in 1994, their friends thought they were crazy. The market was at an all-time low. Rents were cheap and renters few.

But the two 26-year-old experienced rental brokers saw through the depressed market, and identified opportunity. They would fill a number of voids in the rental market by: 1) focusing on the under-serviced middle- and upper-middle-income segment of the market; 2) delivering a menu of comprehensive services to make property owner headaches disappear; and 3) providing a professional environment that would attract and sustain the best and most talented rental brokers in the business.

Today, having grown from one office with two brokers to five main offices with 175 real estate professionals and employees, the partners' friends still think they're crazy - crazy like a fox.

"Some of our growth can be attributed to the tremendous surge in rental values and the strength of the rental market," says Feibush, one of the firm's principals. "But we also feel we put our finger on the pulse of the market and diagnosed a business plan based on service that is the true basis for our success."

Today, as one of the largest residential rental brokerage house in Manhattan, the firm has no plans to slow down. Citi Habitats is currently scouting out space for new offices in Gramercy Park, Soho, Wall Street, Midtown, Tribeca and the Upper West Side and is building its sales staff (in both size and quality) by continuing to attract some of the market's top players.

In addition, the industry has acknowledged the firm's expertise in the rental arena; Citi Habitats has been contracted as a consultant to several developers who are converting commercial buildings for residential use or are building new high-rise rental or condominium properties.

These rewards have been hard won. The young company quickly learned that good relationships - both between agents and owners and agents and clients - meant the difference between success and failure in a highly competitive market. In an effort to maintain these alliances, Feibush and Heiberger created a company that focuses on meeting the needs of both sides of the business equation.

"We pride ourselves on our fantastic relationships with both tenants and owners," notes Heiberger. "At Citi Habitats, we're not looking just to close a deal or just make a single commission. We have a long-term outlook and are always looking to build stronger ties."

To enhance the firm's affiliations with owners, Citi Habitats operates quite differently than many residential companies. For instance, Feibush and Heiberger believe in single-source accountability - an owner always works with the same experienced account manager throughout the life of their relationship with the firm. To maintain continuity, account managers are responsible for closing all leases and sales - at Citi Habitats associate brokers and agents don't call owners. This system frees up salespeople to do what they do best: find apartments for prospective tenants. At the same time, experienced account managers are able to focus on the details of the transaction, pre-approving tenants and handling all lease transactions for their accounts. With this system in place, closings proceed much faster and are virtually hassle-free.

The Citi Habitats system works equally well when the firm is tapped as exclusive rental or sales agent. Unlike other firms, which have only one or two offices, Citi Habitats' agents are spread throughout the City, ensuring that the listings will receive maximum exposure. In addition, these buildings - and every listing - benefit from Citi Habitats' tenant base, which they say is the largest in the business. Citi Habitats has the largest staff of agents to show properties, the principals say, and it's highly likely that at least one Citi Habitats office is located just around the comer. Lastly, dealing with Citi Habitats' professionals means the owner knows the paperwork will be completed perfectly by an account manager, only the type of tenants an owner is looking for will view the building, and the value of the property will be protected throughout the leasing process, the principals say.

"My experience with Citi Habitats has been excellent," says Arnold Goldstein, president of Samson Management, one of the largest owners of residential properties in the Metropolitan New York area. "We know when we're having a problem renting a building we can just call Citi Habitats and be assured it will be entirely rented within a short time. They get results."

"Citi Habitats does a very good job in renting our apartments," adds Linda Berley, managing agent of Abington Holdings, a top New York landlord. "They are always well organized and efficient in getting deals done quickly, with all the proper information."

Heiberger and Feibush note that delivering "hassle-free" service to owners is an important quality in this inventory-tight market. But, as former residential agents themselves, they say they take the most pride in having established a business environment that fosters and nurtures the best talent in the rental industry. While many other residential firms tie agents down to their desks with paperwork, Citi Habitats created a system that liberates agents from their desks to service customers. Explains Heiberger, "We consider residential brokerage to be a street business - meaning the only way to close deals is to be out there showing apartments to prospective tenants. The more time they are out on the street, the greater their success and their income."

In an industry with a high turnover rate, Citi Habitats has one of the best records in the City for agent retention. "We understand the pressures agents face every day, and we are always looking for ways to decrease that strain and increase their performance," says Feibush. In fact, Citi Habitats' reputation among residential agents in Manhattan is so strong, according to the principals, that the company has seen mass-migrations of top brokers from other firms relocating to Citi Habitats.

While some in the industry may think market conditions or luck are responsible for Citi Habitats' success, the partners disagree. Feibush and Heiberger believe that their popularity stems from the fact that they offer services to a segment of the rental market that has long been ignored. While other residential real estate firms in Manhattan are clinging to' the antiquated idea that the only real building worth servicing is a top-of-the-line, luxury property, Feibush and Heiberger are capturing more than their share of the market by servicing the mid- to upscale-level buildings that populate Manhattan's neighborhoods.

"We recognized early on that the majority of Manhattan's rental residential customers were being ignored by most residential brokers and many mid-level buildings were not being serviced properly by brokers," explains Heiberger. "We focus on the mainstay of Manhattan's residential market, offering the same quality services to the young college graduates making $40,000, as to the professional couple earning more than $200,000."

The atrium that adjoins The Harmony, the luxury co-op located at 61 West 62nd Street with entrances on Broadway, 62nd Street and Columbus Avenue, had been driving city planners crazy for a long time. With no amenities to attract people to venture inside, it had been a magnet for the homeless population and those seeking shelter in inclement weather.

A few years ago, Rockrose Development Corp., who was responsible for the development of The Harmony, teamed up with the City Planning Commission and Community Board 7 to create a strategy to reinvent the atrium as an amenity to the community instead of an eyesore. Recently this vision became a reality - when the doors to the Atrium re-opened.

The first step in the revitalization of the atrium was the development of the two-story, Joey's Paesano restaurant last June. The restaurant unveiled an espresso bar with seating throughout the atrium at the grand opening. But the most exciting aspect of Rockrose's plan, and the main focus of the grand opening, was the City's newest sports attraction.

Called the Extra Vertical, the new climbing center facility offers 1,200 square feet of artificial climbing walls including 35-foot-high indoor top-roped climbing walls with bulges, slabs and a 30-foot-long roof and a 50-foot-high state-of-the-art wall overlooking Broadway. The facility is manned by trained staff who will provide instruction for adults and kids. Equipment rental is available on site. Additionally, free programs are being designed for school children to introduce them to the sport safely. The new facility is a place for the entire community to enjoy.