A veteran New York City real estate professional is spending millions to open a big new firm that he hopes will change the marketplace by offering better service and improved technology.

Andrew Heiberger, who previously sold his 1,000-associate venture Citi Habitats to NRT, now a subsidiary of Realogy Inc., is calling the new venture Town Residential. It will debut with 140 associates, including several practitioners with annual sales of nearly $1 billion. The headquarters will be on Fifth Avenue in the Flatiron District with three more offices in the Financial District, Greenwich Village, and on East 57th Street.

Some industry observers have been critical of Heiberger, saying he no longer understands the business. Heilberger is unphased. "There are a lot of talented, hard-working eager, networked people who are looking for something new and something fresh," he says.