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Battered Opus parent company shutting down
The corporation's remaining subsidiaries will operate as independent companies.
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Opus Corp. is shutting down, leaving Mark Rauenhorst -- chairman, CEO and son of founder Gerald Rauenhorst -- out of a job in the executive suite.
The Minnetonka-based company, which has been battered by the commercial real estate meltdown, said Thursday that Rauenhorst, 56, is assuming a new role as a consultant and adviser with the Rauenhorst Trusts. The trusts own the individual companies that in the past had been overseen by Opus Corp., the parent company.
For the past several months Opus, one of the region's largest commercial developers, has undergone a major restructuring that has left it a shell of its former self, with three of five regional divisions in bankruptcy. It currently has about 500 employees, about one-fourth of the workforce it had at the start of the year, with other reductions still possible.
Washington, D.C.-based Opus East has closed, Atlanta-based Opus South is in the process of shutting down and Phoenix-based Opus West will be left with only a small office, according to Opus Corp. spokeswoman Winston Hewett.
The two remaining development companies -- Minnetonka-based Opus Northwest and Chicago-based Opus North -- each are taking on responsibilities for functions previously provided by Opus Corp., thereby eliminating the need for a parent company, Hewett said.
Some services that had been overseen by the parent also have been removed. Earlier this month, Opus completed the sale of its property management business to Bloomington-based NorthMarq Real Estate Services. Other functions, such as information technology, have been outsourced, Hewett said.
Mark Rauenhorst joined Opus in 1982 and, according to a company news release, had been involved in most aspects of the company's activities. In 1996 he became president and chief executive officer of Opus Northwest. He was named president of Opus Corp. in 1999, CEO in 2000 and chairman in April 2007.
His father, Gerald Rauenhost, founded the company in 1953, initially as a construction business operated out of the family home in Richfield. The company expanded into a national design-build and development firm, and its name, Rauenhorst Corp., changed in 1982 to Opus. Gerald, 81, retired in 2007.
In addition to Mark, two other sons of Gerald Rauenhorst at one time held top management positions with the company. Neil Rauenhorst headed Opus South but left in 2002 to form his own real estate business. He was succeeded by another son, Joe Rauenhorst, who left in 2007.
The only Rauenhorst family member still active in the business is Mark's son, Matt, who specializes in retail real estate for Opus Northwest, Hewett said.
Danny Queenan, president and CEO of Opus North, and John Solberg, president and CEO of Opus Northwest, will continue to lead their respective independent operating companies. Opus North has 2.1 million square feet committed and under development, while Opus Northwest has 3.2 million square feet.
Susan Feyder • 612-673-1723
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