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Friday, Mar 29, 2024

Homebuilder’s Move Leaves Workers in Lurch

It was billed as a “merger of equals,” but in the weeks since Westlake Village homebuilder Ryland Group Inc. and Irvine-based homebuilder Standard Pacific Corp. merged to become the country’s fourth-largest residential developer, Orange County has come out on top in the deal. The two California homebuilders closed their $5.2 billion merger, forming CalAtlantic Group Inc., earlier this month. The company’s shares trade on the New York Stock Exchange under ticker symbol “CAA.” The new public company will operate out of Standard Pacific’s Irvine offices and will open an office in northern Virginia to handle CalAtlantic’s East Coast operations. Meanwhile, the Ryland office at 3011 Townsgate Road is on track to close early next year. An employee said none of the 50 back-office staff or management team who work in Westlake Village appears to be joining CalAtlantic. “No one here was offered a job. Our office is closing early next year and everyone will be gone by March,” said the employee, who asked not to be identified. A CalAtlantic spokeswoman disputed that claim, but could not pinpoint how many Ryland employees would be joining the entity. “Decisions are being made on a case-by-case basis,” said Danielle Tocco. One former Ryland employee, Chief Executive Larry T. Nicholson, still has a job. He has become chief executive of CalAtlantic and will work out of the Virginia office, the companies said. At the time the merger was announced, he and Standard Pacific Chief Executive Scott Stowell disclosed that they had engineered the merger over the past four years. Looming vacancy Ryland’s departure leaves a big hole in the Westlake Village business community, said Haider Alawami, economic development director for the city of Thousand Oaks, which counts Ryland within its borders. “It’s a shame that they were bought,” he said. But he’s not too worried that the company’s 26,700 square feet of space will remain vacant for long. “I’m confident that it will be filled. It’s a desirable location across from the Westlake Plaza shopping center where there are a lot of restaurants and other amenities,” he said. Matthew Heyn, senior vice president at brokerage CBRE Group Inc. in Universal City, agreed. “Although losing Ryland is not the best news, we are confident that the market will continue to thrive, as it is a great place to do business,” said Heyn. Vacancy rates in the Conejo Valley have been falling slowly in recent years. During the third quarter, that trend continued with 15,400 square feet taken off the market and vacancy inching down from 15.1 percent to 14.9 percent, according to data from Colliers International. Grant Fulkerson, a Lee & Associates broker who covers the North L.A. and East Ventura County markets, said the Ryland exit is unlikely to reverse that trend. “The market is so healthy right now. (The Ryland space is) going to get absorbed, and probably at a higher rate than previously,” he said. Even the employees who have received termination notices from Ryland are thankful that the layoffs didn’t happen a few years ago, at the height of the recession. “I think people are generally optimistic about the economy and their chances” to find new employment, the Ryland employee said. “But I’m not going to say it’s been easy.”

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