Growth Plan
CAS Riverstone buys Stratus.
CAS Riverstone, formerly known as Riverstone Residential Group, in April acquired Woodland Hills, Calif.-based Stratus Real Estate for an undisclosed price, which brings Riverstone’s fee management portfolio to 120,000 units throughout 625 properties. The acquisition helps the growing Riverstone dramatically increase its presence in two major markets: California and Arizona. (Stratus manages 23,000 units throughout those states, plus Hawaii).
“We are just not going to be big for big’s sake,” says Terry Danner, co-CEO of CAS Riverstone, which is one of the largest fee management firms in the country. “We want to have a presence in markets that we view as key ones where we want to be in the future.”
For Stratus, the deal brings the power of size—and all of its efficiencies. “I believe in the bigger concept at play here, consolidation,” says Steve Heimler, CEO of Stratus, who will be a part of Riverstone’s senior leadership group. Perhaps the biggest gain: back office efficiencies. “This business has way too many people spending too much money on backroom services,” says Heimler. “This is a way to solve that by assembling enough units so you can afford truly the best backroom services available.” The company’s back office services, including accounting, human resources, and IT, will now be centralized with Riverstone’s operations, but Stratus’ property operations staff will stay in place.
Heimler says he’s ready to take his company to the next level. “In my view, it’s not so much that I have given up my baby; my baby has graduated college and is ready for the big leagues.” – Rachel Z. Azoff
Project of the Month
Marquee Park Place
Irvine, Calif.
Walking through the main lobby of Marquee Park Place—Orange County, Calif.’s answer to the urban high-rise craze—you get a sense that you’re not in a run-of-the-mill condo building. It’s more like a five-star luxury hotel.
Marquee’s grand entrance features a gated circular driveway with a porte cochere and a secured entrance leading to the property’s elegant lobby. A 24-hour concierge is stationed in the lobby, which features marble floors and jazz music, creating a ritzy hotel ambience.
Built by Vancouver, B.C.-based residential developer Bosa Development, the 18-story community known as Orange County’s first high-rise condominium complex consists of two concrete and glass towers. There are 232 units offering two-bedroom, two-bath, as well as two-bedroom with den, floor plans, all ranging from about 1,275 square feet to 2,088 square feet.
Unit amenities include full-height windows, expansive balconies, and cable and Internet wiring. The complex also offers a business center, social room, billiards room, pool, lush gardens, and a fitness center with changing and locker rooms. When it opened for sale in 2003, prices ranged from $650,000 to more than $1 million.
Burnaby, B.C.-based Chris Dikeakos Architects designed the condo complex, whose verticality stands out from the O.C.’s suburban reality and pop-culture image. But Nat Bosa, president of Bosa Development, was willing to take such a leap. “How would you know unless you try?” says Bosa. He believes demand for luxury residences within an urban environment will only continue to grow in Orange County. In fact, he has four more high-rises planned for the area.
– Abby Garcia Telleria