Opus Group CEO, who led projects such as Best Buy HQ, retiring after 46 years

Opus Group CEO Tim Murnane will retire next year after nearly four decades with the Minnetonka-based development company and 46 years in the commercial real estate industry.

During his time at Opus, he led several big-ticket developments including the Best Buy corporate campus in Richfield, Arbor Lakes in Maple Grove, and the American Express Financial Advisors complex and Woodbury Lakes in Woodbury.

Matt Rauenhorst — currently CEO of Opus Development Co. and grandson of the Opus founder — on June 25 will assume the role of president of the parent company and will succeed Murnane at the end of 2026.

"It's a really great opportunity to make this as smooth and well-done of a transition as possible," said Rauenhorst, 45. "The fact that I get to work more closely with Tim … that is really what I see as the magic of that transition, the time we can do it together."

Opus Group has three subsidiaries and about 200 employees, half of whom are at its Minnetonka offices.

Murnane, 66, and Rauenhorst have worked together in various capacities for more than 20 years, and said they will continue to do so as they work through industry challenges such as current high interest rates and uncertainty around international tariffs.

Changing economic circumstances can be an "opportunity or challenge," Rauenhorst said. In any case, though, "people need spaces to live, work and play; the long-term demand in those spaces is strong."

The company will remain particularly focused on developing industrial and multifamily housing, they said.

"Some of our best years were actually during COVID" because the shift to more online shopping increased demand for industrial development, Murnane said.

And with the country somewhere between 4 million to 7 million units short of a sufficient housing supply, he said, multifamily housing development will play a big role in filling that need.

Meanwhile, "we're oversupplied in office space as a country, certainly in the city of Minneapolis," Rauenhorst said.

Andrew Babula, director of the real estate program at the University of St. Thomas, credited Murnane with leading Opus' growth through some of the industry's biggest challenges.

"His steady hand, strategic vision, and authentic relationships have left an enduring mark," Babula said in an email, adding that Rauenhorst will be an "excellent" successor.

"Matt's long history with the organization, combined with his experience and deep understanding of the business, position him perfectly to carry the momentum forward," Babula said.

Aside from Opus' founder, Gerry Rauenhorst, who died in 2014, Murnane is the longest-serving CEO in the organization's 73-year history.

Murnane started his career in commercial real estate development in 1980 and has worked on more than 30 million square feet of office, industrial and retail projects, the company said. Since becoming CEO in 2010, Murnane has worked to reinvigorate the organization in the wake of the Great Recession.

"The 2008-2009 period was really challenging for the industry and we were no different," Murnane said. Early strategies included "focusing on the markets we were most active in and redirecting to where the markets were heading."

Bob Underhill, Opus' board chair, lauded Murnane's "skillful leadership."

"While it's difficult to envision our organization without him, I'm thrilled for him to be embarking on his next chapter," Underhill said in a statement.

Matt Rauenhorst started with Opus in 1997 as an hourly laborer in the shop, moving to union field labor the following year. He interned with the development team in 2001 while in college.

After working in real estate-related roles at UnitedHealth Group and Habitat for Humanity, he returned to Opus in 2008 as senior director of development. He rose through the ranks and assumed his current position in 2023.

Phil Cattanach, who spent 13 years with Opus before departing in 2023, will return to replace Rauenhorst as leader of the development team. Cattanach has spent the past two years as executive vice president for commercial development at Minneapolis-based United Properties.