Blue Owl Capital's management team is comprised of seasoned investment professionals with more than 25 years of experience building alternative investment businesses. Oak Street signed MetLife to 12-year triple net leases on the buildings . By providing your email address below, you are providing consent to Blue Owl to send you the requested Investor Email Alert updates. 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. The firm is a market leader in providing unique and flexible real estate solutions to a variety of organizations including corporations, healthcare systems, universities, and government entities. The firm was founded in 2009 and headquartered in Chicago, Illinois. Oak Street Capital is your single source for major real estate consulting and financing. 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. Retailers faced a wide range of challenges in 2022. GIC Real Estate, Inc. and Oak Street Real Estate Capital, LLC completed the acquisition of STORE Capital Corporation (NYSE:STOR) from Berkshire Hathaway Inc. (NYSE:BRK.A), BlackRock, Inc. (NYSE:BLK),The Vanguard Group, Inc. and others. At Blue Owl, we promise to treat your data with respect and will not share your information with any third party. Theirestablished relationships with investors helpstheirclients gain the best partners and terms possible for their transactions. Blue Owl said the transaction adds a complementary real estate capability to Blue Owl's suite of financing solutions for use rs of capital and offer s institutional and retail investors additional compelling investment option s.. Oak Street is a Chicago-based firm, founded in 2009 with over 35 employees and with $10.8 . At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias, At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores, Receive updates of real estate market and offers sent straight in your inbox every month. Oak Street has agreed to purchase and lease to GPM real estate associated with acquisitions of convenience store brands and fueling stations. All referenced data unless otherwise noted is as of December 31, 2022. And this offer includes a 2-Week FREE TRIAL plus my FREE book. We know the company well and have written about it many times over the years. Oak Street specializes in providing flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. The firm was founded in 2009 and headquartered in Chicago, Illinois. If all those variables end up less severe than the current bearish outlook suggests, selling STOR at 14 times (less as adjusted) 2022 AFFO won't look like a stellar deal. 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. <>/Metadata 3336 0 R/ViewerPreferences 3337 0 R>> Bloomberg Surveillance: Early Edition with Francine Lacqua live from London, bringing insight on global markets and the top business stories of the day. 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 2023 ALM Global, LLC. 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. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. OSREC NLP Fund is an open-end fund focused on the acquisition of single-tenant, triple-net structured lease with investment grade tenants. Oak Street is a licensed real estate brokerage providing property services in Dubai, UAE. But the deal would be contingent on Oak Street raising rents 1.5% annually, and for its backers to realize a 7.25% initial return. In addition, upon the achievement of certain performance thresholds, Oak Street equity holders will be entitled to earnouts up to a total of approximately$650 million, payable in cash at future dates or in Blue Owl common units (up to an aggregate of approximately 39 million Blue Owl common units subject to vesting). Web: www.oakstcap.com. Its top 10 tenant concentration is a mere 17.7%, which is best and class and well under O's 28.1%, for example. Oak Street will commit up to $1 billion to the program for one year. The #1 Service For Safe and Reliable REIT Income. Having successfully launched and managedmulti-regionalcommercial real estate divisionsfor twonational banks and developed a nationwide network of real estate developers/owners, investors, lenders, and regulators, Mr. Milek has structured more than $5 billionin senior debt financing. Email: [email protected] Download this eBook and learn how CRE professionals can proactively manage economic challenges by leveraging the power of data. Oak Street Real Estate Capital is a diversified real estate investment firm. 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. I am not receiving compensation for it (other than from Seeking Alpha). STOR's weighted average lease term of 13.2 years also is excellent and only bested by EPRT's 13.8. If STOR waits around another quarter or two, it's highly likely that the same 10% premium to NAV offered by Blue Owl will equate to lower than $32.25 per share. Berkshire Global Advisors served as financial advisor andWillkie Farr& Gallagher LLP acted as legal counsel to Oak Street. The transaction was previously announced in October of 2021. Ultimately the market will decide whether the offer is fair, but we can perform our own analysis to see how it compares against where peers trade and STOR historically. Oak Street Funding. The deal is going through at about a 10% premium to net asset value vs. a 10% discount on Sept. 14. Oak Street offers a unique platform combining direct and indirect real estate strategies across two lines of business, its Net Lease platform and its Seeding and Strategic Capital platform. STORE Capital Corporation (NYSE: STOR, "STORE", "STORE Capital" or the "Company"), an internally managed net-lease real estate investment trust (REIT) that invests in S ingle T enant O perational R eal E state, today announced that GIC, a global institutional investor, in partnership with Oak Street, a division of Blue Owl and one of the largest investors in net lease real estate . vJM;P|AS!U|}6&fMOw89_KP4iOvDp6mbf }@TcGD6 M>Qadx"D(r?HsNL rH -b%%(%9l6$gC)]!mY74F|LQ ZF?;%0@~I Los Angeles. The firm was founded in 2009 and headquartered in Chicago, Illinois. The closing purchase price of$950 millionwill be funded through a combination of cash and Blue Owl common units (up to an aggregate of approximately 39 million Blue Owl common units issuable at closing). The firm focuses on structuring sale-leasebacks, which includes triple net leases, as well as providing seed and strategic capital. The firm focuses on two primary strategies: structuring sale-leasebacks, which includes triple net leases, as well as providing seed and strategic capital. I have no business relationship with any company whose stock is mentioned in this article. Townhouse | Five Palm | 5 Star Facilities, Custom Built | N Frond | Skyline View | Must View, Exclusive | Upgraded | Fully Furnished | VOT. Chairman & CEO Ben Mohns Head of Asset Management - North America Brian Mutchler Head of Special Situations Erin Nahumyk Chief Accounting Officer Geoff Regnery Global Head of Investor Relations Jenna Sheehan Head of Investor Relations - North America, Chief Marketing Officer Joey Lansing Global Head of Portfolio Management & Strategy Owl Rock has been on aggressive path of mergers and acquisitions to build out an ecosystem to rival the likes of Blackstone (BX), Apollo (APO), and KKR & Co (KKR). The deal netted the retailer $250 million in proceeds.. Oak Street structured a $210M , five-building sale-leaseback last December from insurance giant MetLife, totaling 1.3M SF. Then, the agreement calls for STOR to not pay out its Q4 dividend, which would be 41 cents. Mr. Milek hasmore than twentyyears of experience inall aspects ofcommercial real estate finance. Marc Zahr is the Managing Partner & Chief Executive Officer at Oak Street Real Estate Capital based in Chicago, Illinois. Mr. Milek specializes in completingrisk assessments and action plans for distressed financial institutions. Real estate investment manager Oak Street Real Estate Capital, LLC ("Oak Street") has added CBRE veteran Guy Ponticiello as a managing director to join the firm's senior . Announces $12.9 Billion Final Close for Dyal Capital Partners V, Owl Rock leads $401 million financing for Arctic Wolf. Email: [email protected] It's that real estate division - Oak Street Real Estate Capital - that's officially bidding on STOR. This article was coproduced with Williams Equity Research ('WER'). This cookie is set by GDPR Cookie Consent plugin. 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. Why? To learn more about the cookies we use, please see our. SCOTTSDALE, Ariz. & SINGAPORE & CHICAGO - STORE Capital Corporation (NYSE:STOR, "STORE", "STORE Capital" or the "Company"), an internally managed net-lease real estate investment trust (REIT) that invests in Single Tenant Operational Real Estate, today announced that GIC, a global institutional investor, in partnership with Oak Street, a division of Blue Owl and one of the . T@NY{*N In addition, hehas extensive experience developing equity and mezzanine facilities across multiple product lines. Thomas is also the author of The Intelligent REIT Investor Guide (Wiley) and is writing a new book, REITs For Dummies.. 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. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. My team and I look forward to partnering with the Blue Owl team to bring Oak Streets differentiated product offerings to a new base of investors and to collaborate to bring additional investment opportunities to investors in Oak Streets funds down the line.. September 2021 The firm was founded in 2009 and headquartered in Chicago, Illinois. Analytical cookies are used to understand how visitors interact with the website. View Michael Reiter's business profile as Chief Operating Officer at Oak Street Real Estate Capital LLC. Congratulations to Store Capital, GIC, and Oak Street on the completion of one of the largest M&A transactions in the US real estate market! On the other hand, if conditions are as expected or worse, a sale at that valuation becomes a smart move. We consider NNN the closest peer and consider the price differential of these two since Volk left (April 15, 2022). The transaction is expected to close in the fourth quarter of 2021. Nothing to lose with our FREE 2-week trial. STOR's historical financials encompass a period of very low interest rates - up until now. xT]o0}pIMk;*RvPT6:xnyqtnZ\`|y STOR's leverage based on long-term debt as of the end of Q2 was 41%. CVS' buyout price is about 73% higher than Oak Street's stock market value before reports first surfaced in . Private equity firm Oak Street Real Estate Capital LLC has reportedly made a bid to acquire around $2 billion worth of property from Kohl's, Reuters reported on Friday. Yet, these 10 retail brands prove there are many untapped opportunities in the year ahead. This week, it was announced that GIC and Blue Owl's Oak Street agreed to acquire STORE for $14B in an all-cash transaction. Oak Street Capital LLC Oak Street is a Chicago -based firm, founded in 2009 with over 35 employees and with $12.4 billion of assets under management as of September 30, 2021. Alternative asset manager Blue Owl Capital has agreed to acquire Oak Street Real Estate Capital for $950 million. Barsha Heights. Blue Owl Capital Completes Acquisition of Oak Street Real Estate Capital, https://www.prnewswire.com/news-releases/blue-owl-capital-completes-acquisition-of-oak-street-real-estate-capital-301451517.html. Issued by Microsoft's ASP.NET Application, this cookie stores session data during a user's website visit. April 21, 2021. Oak Street Real Estate Capital is a diversified real estate investment firm. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Oak Street operate to the most professional standards. 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. I am not receiving compensation for it (other than from Seeking Alpha). Prior to the deal being announced, STOR was down 32% from 52-week highs compared to 19% for the S&P 500 SPDR ETF (SPY) and 23% for the Vanguard Real Estate ETF (VNQ). Oak Street was founded in 2009 by Marc Zahr and James Hennessey. The firm provides strategic institutional capital to managers enhanced by attractive general partnership economics and an active governance role. O's is 13,000 sq ft vs. 26,000 for SRC and 35,000 for STOR. Oak Street Real Estate Capital has been one of the fastest growing managers in the private real estate space this past decade. Download this whitepaper to learn which top retail CRE brands are poised for big things in 2023. For more information, please visit us at www.blueowl.com. Understandably, investors hope any premium to be on top of the long-term average cash flow multiple rather than a beaten down valuation. O's way bigger at nearly 11,500 properties, but that's a whale very few acquirers can realistically take down. 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? Corporate Relations Get the big picture on a company's affiliates and who they do business with. That's 50% more than SRC, nearly 10 times NTST, and double EPRT. Find Michael's email address, mobile number, work history, and more. Also, reading the tea leaves, we believe other net lease landlords (private and public) will be looking to consolidate portfolios and we suspect Realty Income (O) and Agree Realty (ADC) will continue to seek out M&A deals (which we discuss at iREIT on 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. Oak Street is a Chicago-based firm, founded in 2009 with over 35 employees and with $12.4 billion of assets under management as of September 30, 2021. If you have an ad-blocker enabled you may be blocked from proceeding. As a company valued everyday by the stock market, that matters. Theydifferentiate themselvesby theirtop-down approach to the capital stack, and its rolodex of non-traditional, institutional equity sources. Web: www.oakstcap.com. 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