Ray Franklin Smith, 61, a retired Navy commander and owner of the Virginia Realty Co. in Arlington, died at Walter Reed Army Medical Center Tuesday following a heart attack.

Cmdr. Smith was born in Green Bay, Wis. He graduated from the U.S. Naval Academy at Annapolis in 1942 and was assigned to the carrier Yorktown as a gunnery officer. He was aboard the Yorktown during the Battle of the Coral Sea and at the Battle of Midway in which the ship was sunk.

Later during World War II, Cmdr. Smith commanded a PT boat in the Pacific. He then switched to the submarine service and commanded the USS Torsk. His assignments after the war included the Navy Department in Washington and other postings in this country and at sea. He retired in 1965.

Cmdr. Smith and his family maintained a home in Arlington beginning in 1956. They moved there when he left the Navy and bought the Virginia Realty Co. Cmdr. Smith was active in the firm until his death. The business is being carried on by his wife, Betty, whom he married 38 years ago.

Cmdr. Smith was a member of the Northern Virginia Board of Realtors and the Arlington Chamber of Commerce.

In addition to his wife, of Arlington, survivors include four daughters, Sandra Jeanne Pistolesi, of Lovettsville, Va., Antoinette Lee Smith, of New York City, Linda Marie Lawrence of Burke, and Jo-Ann Francis Smith, of Vienna; three sons, Ray Franklin Jr., of Oakton, Patrick Charles, of Syosset, N.Y., and Gregory Thomas, of Arlington; one sister, Arlene Brunette, of Colorado Springs, Colo.; one brother, Edsel Smith, of Denmark, Wis.; his step-father, Burton Beaver, of Colorado Springs, and eight grandchildren.