See our latest interview with FRG's CEO here. Set by addthis.com to determine the usage of addthis.com service. We look forward to working closely together and are excited for what the future holds. This Q4 retail quarterly index report reveals how economic headwinds impacted key retail CRE categories during the critical holiday shopping season, and what their performance tells us about consumer behavior and brick-and-mortar retail in the year ahead. 2 0 obj You also have the option to opt-out of these cookies. 1 0 obj Oak Street Real Estate Capital is a diversified real estate investment firm. Grosvenor Business Tower, Heis also the editor of The Forbes Real Estate Investor., Thomas has also been featured in Barron's, Forbes Magazine, Kiplingers, US News & World Report, Money, NPR, Institutional Investor, GlobeStreet, CNN, Newsmax, and Fox., He is the #1 contributing analyst on Seeking Alpha in 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2022 (based on page views) and has over 106,000 followers (on Seeking Alpha). <> Oak Street is aChicago-based firm, founded in 2009 with over 35 employees and with$10.8 billionof assets under management as ofJune 30, 2021. Marc received a B. The platform provides strategic institutional capital to managers typically enhanced by attractive general partnership economics and an active governance role. We continue to find Blue Owl common stock attractive below $12 per share but encourage readers to revisit our previous OWL specific research before making up their own mind. 7 0 obj Necessary cookies are absolutely essential for the website to function properly. First, investors had anticipated a dividend increase for Q3. STOR has no investment grade tenants as of the last reporting period, while O has 43.2%. "Illini Angels" is recruiting . endobj Before we get into the specifics of the acquisition, we need to understand the buyer's perspective. The firm was founded in 2009 and headquartered inChicago, Illinois. 14 times to 15) for a share price around $35 - but no higher. endobj I wrote this article myself, and it expresses my own opinions. 21917 Rock Wren Rd About Oaktree. The firm was founded in 2009 and headquartered in Chicago, Illinois. 2017-2023 Oak Street Capital, LLC. $32.25 - 43.5 is $31.815. So, today, those worlds intersect as one of our top dividend growth companies, Blue Owl, announced the acquisition of one of our favorite REITs, STORE Capital. Investor ContactAnn DaiHead of Investor Relations[emailprotected], Media ContactProsek PartnersDavid Wells/Nick Theccanat[emailprotected], Cision Distribution 888-776-0942 The annual rent escalators built into its leases are 1.8% and considered sufficient in most environments. (Podcast), CEO/Mng Dir/Co-Founder, Oak Street Real Estate Capital LLC. Blue Owl Capital has over 300 employees across its Direct Lending and GP Capital Solutions divisions and has nine offices globally. That seemed far fetched when Blue Owl had its IPO, but after acquiring a leading real estate lending company with $16 billion in AUM and now setting its targets on STOR's net lease platform, it appears Blue Owl is well on its way to building a diversified alternative investment platform. Environmental, Social and Governance (ESG), HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American, Blue Owl Capital Inc. Fourth Quarter 2022 Results, Blue Owl Capital Inc. to Present at the Bank of America Financial Services Conference 2023. That's 50% more than SRC, nearly 10 times NTST, and double EPRT. "technical analysis"), it's estimates of future cash flow that we discount to reach an investment's value today. 2017-2022 Oak Street Capital, LLC. This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector. Well, it might, if things stabilize and investment AFFO spreads revert. Oak Street has agreed to purchase and lease to GPM real estate associated with acquisitions of convenience store brands and fueling stations. The Seeding and Strategic Capital business focuses on investing in early-stage real estate managers across various industry sectors. To do that, we need to start with what differentiates STOR. Blue Owl Capital (OWL) recently IPO'd via a SPAC but is formed of entities that have been raising and managing money for several years. STOR's weighted average lease term of 13.2 years also is excellent and only bested by EPRT's 13.8. <>/Metadata 3336 0 R/ViewerPreferences 3337 0 R>> You can unsubscribe to any of the investor alerts you are subscribed to by visiting the unsubscribe section below. Oak Streets active net lease funds primarily focus on single tenant properties, net leased to investment grade and creditworthy tenants, under long duration leases, providing for predictable income. Los Angeles. Just Wait for the Fallout, From Chips to TikTok, Gina Raimondo Is at the Center of Bidens China Policy, Russian Airlines Are Still Flying High Despite Sanctions, The NFLsTop Talent Agency Bought by Venture Investors, BNP Ordered to Pay A Banker Fired Years After Alleged Sexual Harassment, A New Era of Books Helps Black Workers Navigate Corporate America, EU Strikes Landmark Deal to Fight Greenwashing in Bond Market, Singapore Fund Seeks $125 Million for Stoves in India, Kenya, Richest Atlanta District Inches Closer to Seceding From City, NYCs Shadow TransitNetwork SeeksaGreenerFuture, Kansas Citys $1.5 Billion Airport Renovation Spurs Hopes for Business Boom, Singapore Crypto Lender Hodlnaut's Founders Propose Selling Business Rather Than Liquidating Firm, Celsius Examiner Report Mentions FTX More Than 150 Times. Oak street is private equity real estate firm based in Chicago that focuses on structuring sale-leasebacks. For more information, please visit us at www.blueowl.com. Kirkland & Ellis LLP acted as legal counsel to Blue Owl. The unit, Petershill, in November purchased a minority stake in Oak Street Real Estate Capital LLC, which has raised over $6.5 billion since launching in 2009. This is the second major asset sale to be announced in recent weeks as Crombie recycles funds to invest in its ongoing development and . Blue Owl Capital is an alternative asset manager that provides investors access to Direct Lending and GP Capital Solutions strategies through a variety of products. Already the Second-Largest Buyer During Pandemic, CEO Says Chicago Firm Has $10 Billion Pipeline Oak Street Real Estate Capital owns this 1.3 million square feet industrial property at 50 Rausch . Find Michael's email address, mobile number, work history, and more. Oak Street specializes in providing unique and flexible real estate solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. ", Marc Zahr, Co-Founder and CEO of Oak Street, said: "Through its direct lending and GP stakes solutions, Blue Owl has built a one-stop shop for alternative asset managers in solving capital needs. Markets never sleep, and neither does Bloomberg News. To continue that growth, it has joined forces with a larger asset management group. Our typical financing zone ranges from from $5M to $500M. April 21, 2021. Blue Owl Capital is an alternative asset manager that provides investors access to Direct Lending and GP Capital Solutions strategies through a variety of products. The cookies is used to store the user consent for the cookies in the category "Necessary". Berkshire Global Advisors served as financial advisor and Willkie Farr & Gallagher LLP and Gibson, Dunn & Crutcher LLP acted as legal counsel to Oak Street. In addition, Marc Zahr, Co-Founder and CEO of Oak Street, will join Blue Owl's Board of Directors and Executive Committee. Blue Owl has approximately 250 employees across its Direct Lending and GP Capital Solutions divisions and has six offices globally. Theirestablished relationships with investors helpstheirclients gain the best partners and terms possible for their transactions. We are excited to join the Blue Owl team and add our flexible real estate solutions to the platform.". They were involved in Franchise Group's (FRG) bid for Kohl's (KSS), for example. Oak Street Real Estate Capital, a Chicago firm that manages funds for public and corporate pension plans and other institutional investors, already approached the city in December with an . STOR's leverage based on long-term debt as of the end of Q2 was 41%. Set by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category . The valuation associated with it earns a "fair" classification from us, and while one can argue it should be slightly higher (STOR shareholders) or lower (OWL shareholders), it isn't unreasonable. AddThis sets this geolocation cookie to help understand the location of users who share the information. Oak. This idea was discussed in more depth with members of my private investing community, iREIT on Alpha. This cookie is set by GDPR Cookie Consent plugin. After you have typed in some text, hit ENTER to start searching Myles C. Milek, SeniorAdvisor, Founder of Ridgewood Capital. As per the report, Oak . Under the agreement, ARKO Corp.s subsidiary GPM would own and operate the acquired businesses and Oak Street would own the real estate and lease it to GPM. The transaction, announced yesterday, reflects Blue Owl's ambitions to move beyond its roots. A supplemental investor presentation on the transaction is available on the Investor Resources section of Blue Owls website atwww.blueowl.com. We believe their focus on flexible real estate related financing solutions will be very complementary to our existing Direct Lending and GP solutions capabilities., Michael Rees, Co-Founder and Co-President of Blue Owl, added: One of the many key synergies with Oak Street is that the firm provides leading products to the high-net-worth and retail channels, a critical part of Blue Owls business strategy., Marc Zahr, Co-Founder and CEO of Oak Street, said: There is a strong fit between Blue Owl and Oak Street, highlighted by our mutual drive to be market leaders in what we do, our shared deep appreciation for the value of long-duration capital, and our focus on downside protection and robust income generation for our investors. It works only in coordination with the primary cookie. Private Placement of Senior Secured Notes, Coordinating Lead ArrangerAdministrative Agent, Massachusetts Development Finance Agency Series 2022, Sales Tax and Telecommunications Revenue Refunding Bonds, Left Lead ArrangerJoint BookrunnerAdministrative Agent, Lead ArrangerBookrunnerAdministrative Agent, has entered into an affiliation agreement with, has divested of a 14.2 MW community solar portfolio in Illinois to, tpg-growth-and-novant-health-partnership-medquest-associates, massachusetts-development-finance-agency-dyouville-senior-care, utah-telecommunication-open-infrastructure-agency. Copyright Blue Owl Capital Inc. 2023. Please disable your ad-blocker and refresh. Think 2008 -2020. Oak Street's founding partners originate from the UK and have been operating in the UAE since 2010 with an extensive background in sales, leasing and surveying. Forward-Looking StatementsCertain statements made in this release are forward looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Understandably, investors hope any premium to be on top of the long-term average cash flow multiple rather than a beaten down valuation. Monitor your investments 24 hours a day, around the clock from around the globe. Disclosure: WER is long STOR and OWL and short STOR put options. That's a healthy improvement over the pre-deal's 11.8 times, but keen investors know what STOR's 5-year AFFO multiple is around 15.5 times (it's a little over 16 times since inception). Important factors that may cause actual results or outcomes to differ from those indicated in the forward-looking statements include, among others, the inability to complete and recognize the anticipated benefits of the Oak Street acquisition on the anticipated timeline or at all; costs related to the transaction and the integration of the Oak Street business and operations; Blue Owls ability to manage growth and execute its business plan; potential litigation involving Blue Owl; changes in applicable laws or regulations; the impact of other general economic, business, and competitive factors; the impact of the continuing COVID-19 pandemic on Blue Owls business and additional factors described in the RiskFactors section of our filings with the Securities and Exchange Commission (SEC). You can sign up for additional alert options at any time. URBANA The University of Illinois' venture-capital arm is building a network of alumni investors to help grow campus-borne businesses from the ground floor. Find new & featured property located in your local city. Oak Street Real Estate Capital is a diversified real estate investment firm. STOR's model is primarily a single-tenant triple net lease. Oak Street Real Estate Capital is a diversified real estate investment firm. Marketing and Client Relations. 2023 Blue Owl Capital Inc. All Rights Reserved. Oak Street Funding. For more information, please visit us at www.blueowl.com. Oak Street client service is spectacular. Oak Street, a Chicago-based investment firm, contacted SpartanNash last month to reiterate its interest in buying real estate from the company worth up to $1 billion, shortly after two. CEO up until two quarters ago (no one at Wide Moat Research has any affiliation with STORE Capital outside of owning common equity). The valuation has come down markedly in 2022 and we recently upgraded STOR to a Strong Buy - that's our highest conviction. Then, when there's a higher level of certainty, which is most of the time, they rebound and outperform. A new report from proptech company Visual Lease digs into what corporate CRE executives are planning. stream Oak Street Real Estate managed $10.8 billion at the end of June, primarily in the sale-leaseback business. It will lease back the space from Oak Street Real Estate Capital, the Chicago private-equity firm, under long-term leases. (Podcast), Will Smoking-Monkey JPEGsClog UpBitcoins Blockchain? The private equity firm could buy up to $2 billion worth of the. Doug Ostrover, Co-Founder and CEO of Blue Owl, said: "We are thrilled to officially welcome Marc and the Oak Street team to Blue Owl. Oak Street Capital LLC Lets walk through the mechanics of the deal and what it means for shareholders of both entities. The net proceeds from the issuance of the Notes will be used to repay outstanding borrowings under the Revolving Credit Facility and for general corporate purposes, including potential acquisitions. Oaktree Capital Management is a leader among global investment managers specializing in alternative investments. The firm had approximately $70.5 billion of assets under management as of September 30, 2021. We are excited to join the Blue Owl team and add our flexible real estate solutions to the platform.". With more than 30 years in real estate he has successfully closed more than $2 billion in transactions in real estate brokerage and financing. Oak Street specializes in providing flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. Berkshire Global Advisors served as financial advisor andWillkie Farr& Gallagher LLP acted as legal counsel to Oak Street. Oak Street structured a $210M , five-building sale-leaseback last December from insurance giant MetLife, totaling 1.3M SF. Sophie Aldrich, CFA. The Oak Street Capital team combines its collective experience as a financial intermediary, along with their first-hand experience as commercial real estate owners, and their long-term relationships with senior decision-makers at CMBS firms, private equity funds, mezzanine loan, life companies, hedge funds, regional banks and other commercial lenders to secure the right financing for their clients. (Remember that we also upgraded STOR to a Strong Buy in 2017 weeks before Berkshire purchased the initial tranche.). About Blue OwlBlue Owl is an alternative asset manager that provides investors access to Direct Lending and GP Capital Solutions strategies through a variety of products. Kirkland & Ellis LLP acted as legal counsel to Blue Owl. Upon closing of the transaction, key members of the Oak Street leadership team will remain in place leading the Oak Street business, and Oak StreetsChicagooffice will become an additional office for Blue Owl. Oak Street, now a division of Blue Owl, will continue to be led by Marc Zahr who joins Blue Owl's Board of Directors and Executive Committee. Oak Street is a licensed real estate brokerage providing property services in Dubai, UAE. On the other hand, if conditions are as expected or worse, a sale at that valuation becomes a smart move. Oak Street Real Estate Capital is a diversified real estate investment firm. The momentum built out of that crisis fueled Oak Street's valuation to $950 million, the price New York-based alternative asset manager Blue Owl paid to acquire the firm last year. Investor ContactAnn DaiHead of Investor Relationsowlir@blueowl.com, Media ContactProsek PartnersDavid Wells/Nick TheccanatPro-blueowl@prosek.com, View original content to download multimedia:https://www.prnewswire.com/news-releases/blue-owl-capital-completes-acquisition-of-oak-street-real-estate-capital-301451517.html, 399 Park Avenue, 37th Floor New York, NY 10022. The firm provides strategic institutional capital to managers enhanced by attractive general partnership economics and an active governance role. To learn more about the cookies we use, please see our. The retailer sold 2.1 . The products, services, information and/or materials contained within these web pages may not be available for residents of certain jurisdictions. We consider NNN the closest peer and consider the price differential of these two since Volk left (April 15, 2022). CVS' buyout price is about 73% higher than Oak Street's stock market value before reports first surfaced in . Doug Ostrover, Co-Founder and CEO of Blue Owl, said: "We are thrilled to officially welcome Marc and the Oak Street team to Blue Owl. The net lease funds provide corporate tenants with the ability to optimize their balance sheets, delivering immediate liquidity, tax benefits, and operational flexibility. Again, this is not really at $32.25 as I pointed out. STOR's historical financials encompass a period of very low interest rates - up until now. Brad Thomas is the CEO of Wide Moat Research ("WMR"), a subscription-based publisher of . t{^n.5.4|{yZ|YOOwu yM^Fg( Chicago-headquartered Oak Street Real Estate Capital is the only newcomer to land in the PERE 100's top 20. Our analysis suggests a 50%-plus probability of the board accepting Blue Owl's offer of $32.25 per share ('WER'). Oak Street specialises in residential freehold communities throughout Dubai with a strong emphasis on operating to the highest professional and ethical standards. All Rights Reserved. Oak Street Real Estate Capital is a diversified real estate investment firm. Vice President. NEW YORK and CHICAGO, Dec. 30, 2021 /PRNewswire/ -- Blue Owl Capital Inc. ("Blue Owl") (NYSE: OWL) announced today the completion of its acquisition of Oak Street Real Estate Capital, LLC ("Oak Street") and its investment advisory business. Exclusive discounts on ALM and GlobeSt events. Oak Street offers a unique platform combining direct and indirect real estate strategies across two lines of business, its Net Lease platform and its Seeding and Strategic Capital platform. The question is whether STOR's multiple will rise after rate increases. (Brad Thomas targets 75% probability of acceptance.). Its peer group includes Realty Income (O), ADC, EPRT, SRC, NTST, NNN, and ADC. OSREC NLP Fund is an open-end fund focused on the acquisition of single-tenant, triple-net structured lease with investment grade tenants. ExodusPoint Capital Management LP cut its holdings in shares of Oak Street Health, Inc. (NYSE:OSH - Get Rating) by 24.6% during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission.The fund owned 23,944 shares of the company's stock after selling 7,820 shares during the period. This cookie is set by Windows Azure cloud, and is used for load balancing to make sure the visitor page requests are routed to the same server in any browsing session. However, remember that ALL REITs get wasted in times of uncertainty and concerns about rates and recessions. Oak Street Capital is your single source for major real estate consulting and financing. Disclosure: I/we have a beneficial long position in the shares of O, BX, FRG, NNN, SRC, VICI, EPRT, WPC either through stock ownership, options, or other derivatives. Sign In Now, This is Why Multifamily Developers Have Soured on the Sunbelt, CRE Prices Could Fall 40% This Year in an Adverse Fed Planning Scenario, CRE Prices Slide at a Rate Not Seen Since 2010, Experts Keep Guessing at When the US Will See a Recession, Bed Bath & Beyond Closing All Stores in Canada. The cookie is used to store the user consent for the cookies in the category "Performance". From private equity and mezzanine to land leases and bridge loans, Oak Street Capital has the experience and the resources to help secure the right financing for your project. Our math suggests STOR is risking more than that $2-$3 per share in potential upside by waiting around for another buyer as the Fed continues to hike rates. BlackRock: The ESG Issue Is . Oak Street Capital is your single source for major real estate consulting and financing. AED4+X(( Issued by Microsoft's ASP.NET Application, this cookie stores session data during a user's website visit. Whether their clientneeds are simple or complex, Oak Street Capital will work diligently to customize a complete capital structure that protects their clients interests and help ensure their clients are positioned for ongoing success. endstream This cookie is set by GDPR Cookie Consent plugin. Thomas is also the author of The Intelligent REIT Investor Guide (Wiley) and is writing a new book, REITs For Dummies.. Oak Street offers a unique platform combining direct and indirect real estate strategies across two lines of business, its Net Lease platform and its Seeding and Strategic Capital platform. The firm provides strategic institutional capital to managers enhanced by attractive general partnership economics and an active governance role. Ultimately the market will decide whether the offer is fair, but we can perform our own analysis to see how it compares against where peers trade and STOR historically. I am not receiving compensation for it (other than from Seeking Alpha). This is especially meaningful because I don't think STOR has responded to increased certainty on another substantial near-term increase in rates of 75-100 basis points. All Rights Reserved. The firm's breadth of offerings and permanent capital base enables it to offer a differentiated, holistic platform of capital solutions to participants throughout the private market ecosystem, including alternative asset managers and private middle market corporations. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously. Kirkland & Ellis LLP acted as legal counsel to Blue Owl. Nothing to lose with our FREE 2-week trial. Announces $12.9 Billion Final Close for Dyal Capital Partners V, Owl Rock leads $401 million financing for Arctic Wolf. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors. Oak Street Real Estate Capital is a diversified real estate investment firm. (See our deep dive on Blackstone's private REIT here.). The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. The firm was founded in 2009 and headquartered in Chicago, Illinois. 99.5% occupancy as of the end of Q2 is also difficult to beat. Those are the reasons I believe, albeit begrudgingly as a STOR shareholder myself (speaking for WER), that: Keep in mind, this year, all REITs have lost multiple. Brad Thomas is the CEO of Wide Moat Research ("WMR"), a subscription-based publisher of financial information, serving over 10,000 investors around the world. The firm had approximately$62.4 billionof assets under management as ofJune 30, 2021. Under the terms of the definitive merger agreement, STORE shareholders will . All Rights Reserved. Mr. Hampton founded Oak Street Capital in 2003. Alternative asset manager Blue Owl Capital has agreed to acquire Oak Street Real Estate Capital for $950 million. The firm was founded in 2009 and headquartered in Chicago, Illinois. Alternative asset manager Blue Owl Capital Inc. has agreed to acquire Oak Street Real Estate Capital LLC, of Chicago, and its investment advisory business for $950 million. Berkshire Global Advisors served as financial advisor and Willkie Farr & Gallagher LLP and Gibson, Dunn & Crutcher LLP acted as legal counsel to Oak Street. The firm was founded in 2009 and headquartered in Chicago, Illinois. In September 2022, Oak Street and GIC agreed to acquire Store Capital for $14 Billion. These elements explain why Blue Owl is both interested in STOR and at $32.25 per share, but two key questions remain: Is it good for STOR shareholders and what's the probability of obtaining a better price?