If you’ve lived in Iowa City for more than a minute, you’ve heard the name. Tracy Barkalow. It’s a name that carries a lot of weight in Johnson County, depending on who you ask. To some, he’s the quintessential local success story—a guy who grew up here and built a real estate empire from the ground up. To others, specifically the vocal crowd on Reddit and the Iowa City Tenants Union, he represents the friction between aggressive development and community preservation.
Lately, things have been moving fast. From lawsuits over lease agreements to a high-profile pivot away from residential rentals, Barkalow’s footprint in Iowa City is changing. It's not just about apartments anymore. It's about bars, late-night zoning, and a very public "exit plan" from the student housing game.
The Man Behind the Portfolio
Tracy Barkalow isn't just a landlord. He’s a broker, a developer, and a lifelong resident of the area. He’s been in the game for over 20 years. That’s a long time to be buying and selling in a town where the market is basically fueled by a never-ending stream of University of Iowa students. He operates through several entities, most notably TSB Holdings and Big Ten Property Management.
His business model has always been ambitious. We’re talking about a guy who specializes in the complex stuff: 1031 tax-deferred exchanges, commercial leasing, and large-scale land development. He’s a member of the National Association of Realtors and the local Iowa City chapter. On paper, his resume is the gold standard for a regional power player.
But it’s the human element where things get messy.
The Tenant Clash: What Most People Get Wrong
You can’t talk about Tracy Barkalow Iowa City without mentioning the 2016 class action settlement. This is the one people always bring up at parties or in online threads. Basically, a group of tenants sued TSB Holdings and Big Ten Property Management over their lease agreements.
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The court didn’t mince words. A judge ruled that several provisions in Barkalow’s leases were actually illegal under the Iowa Landlord Tenant Act. These included:
- Automatic carpet cleaning charges (a big no-no in Iowa if not handled correctly).
- Provisions that tried to remove the landlord's liability for certain things.
- Charging tenants for common area damages without proving they caused them.
It ended with a settlement where about $10,400 was set aside for former tenants. It wasn't a massive payday for the individuals—most got between $65 and $130—but it was a massive blow to his reputation. It labeled him, in the eyes of many students, as a "slumlord," a term he has fought against for years.
Why He’s Getting Out of the Rental Game
In a move that surprised a lot of people in early 2025, Barkalow announced he was divesting from his residential properties. He told The Daily Iowan and other local outlets that he plans to sell off his entire Iowa City residential portfolio over the next five years.
Why the sudden exit?
Honestly, he seems fed up. Barkalow has cited a "resistance to development" from city officials as a primary reason. He specifically pointed to a years-long legal battle over a proposed 84-unit apartment complex on North Governor Street. He won the right to move forward with the project eventually, but the taste seems to have gone sour.
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Then there’s the "tenant management" aspect. Managing thousands of college students is a headache. Between the constant maintenance requests and the public vitriol on social media, Barkalow basically said, "I'm done." He’s shifting his focus.
The New Chapter: Fieldhouse and The Union
If you thought he was just going to retire and play golf at the Finkbine, you don't know Tracy. He’s pivoting hard into the nightlife scene.
In late 2025, Barkalow opened The Fieldhouse in the old Active Endeavors spot on Clinton Street. If that name sounds familiar, it should. He’s leaning into the nostalgia of "old" Iowa City, even using the original logo for his next project: The Union.
But this has already sparked a new war with the city. Former city councilor Karen Kubby and other local leaders have raised alarms about the "500-foot rule." This is a zoning ordinance that prevents new bars in the University Impact Zone from staying open past midnight if they are within 500 feet of another liquor-licensed spot.
Barkalow’s bars have been listing their hours as "6:00 p.m. – CLOSE," which most people assume means 2 a.m. If he pushes those hours, he’s headed for another collision with the City Council. It's classic Barkalow—moving fast, breaking things, and daring the city to stop him.
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The Real Impact on Iowa City
It’s easy to pick a side. You either see him as a predatory equity guy who jacks up rents and ruins the "vibe" of downtown, or you see him as a businessman who provides necessary housing and entertainment in a difficult regulatory environment.
There’s some truth in the middle. Barkalow has undeniably been a force in shaping what downtown looks like. When local favorites like Sanctuary or Which Wich close, his name often pops up as the landlord. Critics say he prices out the "soul" of the city; supporters say he's just following the market.
Actionable Insights for Residents and Tenants
If you’re dealing with the Barkalow "empire" today, here’s what you actually need to know:
- Check Your Lease: If you are still in a TSB or Big Ten property, read the fine print. After the 2016 settlement, his leases should be compliant, but you have the right to challenge illegal fees like automatic carpet cleaning or non-refundable "admin" fees that aren't tied to actual costs.
- Monitor the Divestment: As he sells his properties over the next few years, your landlord might change. Keep records of your security deposit and move-in condition. New owners often try to "start fresh," and you don't want your deposit lost in the shuffle.
- The 500-Foot Rule: If you’re a fan of the new Fieldhouse or Union, be aware the hours might be volatile. The city is currently looking into the midnight closure ordinance. Don’t be surprised if "Last Call" comes earlier than you expect while this gets sorted in court.
- Voice Your Opinion: The City Council actually listens to residents regarding these 500-foot rule exceptions and development permits. If you have thoughts on the "Governor Street" style developments, show up to the meetings.
Tracy Barkalow isn't going anywhere, but his role in the city is transforming. He’s moving from the guy who owns your bedroom to the guy who owns your favorite Saturday night bar. Whether that’s an upgrade depends entirely on your perspective.
Next Steps for Property Research
If you're looking to dive deeper into property ownership or tenant rights in Iowa City, you should consult the Iowa City Housing Authority for official guidelines. For those interested in tracking the ongoing zoning disputes regarding downtown nightlife, the Iowa City Council meeting archives provide the most accurate record of the current legal challenges facing Barkalow's new ventures.