Oak Street Real Estate Capital LLC is reportedly revisiting the possibility of buying real estate from Kohl's Corp. We also use third-party cookies that help us analyze and understand how you use this website. CEO W. P. Carey Dave Gibbons '92 President Elberon Development Group Tom Grier '87 Managing Director JP Morgan Larissa Herczeg '96 Managing Partner Oak Street Real Estate Capital/Blue Owl Tom Hoban '95 President & CIO Kitson & Partners Malcolm Johnson '98 Founder & CEO Langdon Park Capital Bob Karnes '83 Managing Director BlackRock Matt Kenney 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. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Oak Street was founded in 2009 by Marc Zahr and James Hennessey. Our typical financing zone ranges from from $5M to $500M. The platform seeks to work with strongly aligned management teams with leading investment capabilities, oftentimes led and controlled by women and minorities. Oak Street Real Estate Capital is a diversified real estate investment firm. See our latest interview with FRG's CEO here. The cookie is used to store the user consent for the cookies in the category "Performance". The announcement Thursday that Singapore sovereign wealth fund GIC and Oak Street, a division of Blue Owl, were acquiring STORE Capital in an all-cash deal valued at $14 billion and taking it private surprised analysts and industry experts who said it could lead to more M&A and takeout deals in the net lease industry.. A. degree from University of Dayton. After submitting your request, you will receive an activation email to the requested email address. %PDF-1.7 ARRAffinity cookie is set by Azure app service, and allows the service to choose the right instance established by a user to deliver subsequent requests made by that user. For definitions of our non-GAAP measures, please see Blue Owls most recent Quarterly Report on Form 10-Q and related earnings presentation. It's not complicated - performance is strong and consistent. The firm was founded in 2009 and headquartered in Chicago, Illinois. The cookies is used to store the user consent for the cookies in the category "Necessary". <> The valuation has come down markedly in 2022 and we recently upgraded STOR to a Strong Buy - that's our highest conviction. Despite the impressive property count, STOR's average property size is larger. Sept 15 (Reuters) - Singapore's GIC and private equity firm Oak Street, a division of Blue Owl Capital Inc (OWL.N), will buy commercial real estate investment trust Store Capital Corp (STOR.N) in . Zahr and Hennessey compare the offer to corporate sale-leaseback . 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. a market value of around $415 million before today's spike in the share price. As per the report, Oak . Oak Street has built the industrys preeminent net lease platform with meaningful capital, scale and the expertise necessary to enter into large, complex sale-leaseback transactions with major, creditworthy corporations. Oak Street Capital LLC All rights reserved. STOR's credit metrics are all slightly better than the BBB+ (that's three notches into investment grade territory) peer averages. Lets walk through the mechanics of the deal and what it means for shareholders of both entities. In August 2021, Oak Street acquired The Bow in Calgary for $1.2 billion. The firm provides strategic institutional capital to managers enhanced by attractive general partnership economics and an active governance role. Download this whitepaper to learn which top retail CRE brands are poised for big things in 2023. You can unsubscribe to any of the investor alerts you are subscribed to by visiting the unsubscribe section below. T@NY{*N STOR's weighted average lease term of 13.2 years also is excellent and only bested by EPRT's 13.8. 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. 5 0 obj The platform provides strategic institutional capital to managers typically enhanced by attractive general partnership economics and an active governance role. About Oaktree. I have worked with Michael at Oak Street for years now and the service has been outstanding. Use the PitchBook Platform to explore the full profile. Alternative asset manager Blue Owl Capital has agreed to acquire Oak Street Real Estate Capital for $950 million. 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. 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. t{^n.5.4|{yZ|YOOwu yM^Fg( 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. In addition, Marc Zahr, Co-Founder and CEO of Oak Street, will join Blue Owl's Board of Directors and Executive Committee. Mr. Hampton has extensive experience structuring and closing construction loans and bridge loans as well. Kirkland & Ellis LLP acted as legal counsel to Blue Owl. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously. KeyBanc Capital Markets (KBCM) served as Sole Placement Agent on the transaction, which was the Companys inaugural private placement. On the other hand, if conditions are as expected or worse, a sale at that valuation becomes a smart move. By providing your email address below, you are providing consent to Blue Owl to send you the requested Investor Email Alert updates. You also have the option to opt-out of these cookies. 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 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. The _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. Web: www.oakstcap.com. Oak Street is committing up to $1 billion. Email: bh@oakstcap.com Oak Street Capital is a Real Estate Investment and Financing company focused on private equity investment, mezzanine financing, land acquisition and improvement loans, construction loans, bridge loans, debt financing, lending consultation and real estate brokerage. If you have an ad-blocker enabled you may be blocked from proceeding. Barsha Heights. 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. Oak Street signed MetLife to 12-year triple net leases on the buildings . Oak Street Real Estate Capital is a diversified real estate investment firm. Blue Owl Capital has over 300 employees across its Direct Lending and GP Capital Solutions divisions and has nine offices globally. Oak Street Real Estate Capital has agreed to be bought by Blue Owl Capital for up to $1.6bn (1.4bn). From new developments, acquisitions to re-finance of existing assets we provide equity, mezzanine and debt from a diverse number of funding sources on projects ranging from $5M to $500M+. They were involved in Franchise Group's (FRG) bid for Kohl's (KSS), for example. 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. In addition, hehas extensive experience developing equity and mezzanine facilities across multiple product lines. The deal is going through at about a 10% premium to net asset value vs. a 10% discount on Sept. 14. 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. September 2021 Townhouse | Five Palm | 5 Star Facilities, Custom Built | N Frond | Skyline View | Must View, Exclusive | Upgraded | Fully Furnished | VOT. (See our deep dive on Blackstone's private REIT here.). Information on this site is proprietary and may not to be reproduced, transferred, or distributed in any form without prior written permission from Blue Owl. The Net Lease platform is focused on acquiring properties net-leased to investment grade and creditworthy tenants. Again, this is not really at $32.25 as I pointed out. Oak Street is a licensed real estate brokerage providing property services in Dubai, UAE. The transaction was previously announced in October of 2021. Oak Street client service is spectacular. Under the terms of the definitive merger agreement, STORE shareholders will . If I had to guess, he doesn't mind the 5.9% and 6.1% annual growth in AFFO and dividends, respectively, since 2016. 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 . Oak Street Real Estate Capital is a diversified real estate investment firm. With your permission, we also use cookies and similar technologies to provide enhanced functionality, to improve performance, and to analyze site usage. Web: www.oakstcap.com. While the headline price is $32.25, the actual consideration appears less. Oak Street has been very active in the public REIT M&A space. Oak Street Capital is a Real Estate Investment and Financing company focused on private equity investment, mezzanine financing, land acquisition and improvement loans, construction loans, bridge loans, debt financing, lending consultation and real estate brokerage. Under the agreement, ARKO Corp.'s subsidiary GPM would. Please disable your ad-blocker and refresh. We specialize in REITs and high-quality dividend companies. 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. Copyright 2023 ALM Global, LLC. The firm focuses on structuring sale-leasebacks, which includes triple net leases, as well as providing seed and strategic capital. Spicewood, TX 78669, Tel: +1 (312) 731-3391 That's below the 52-week high of $36.13 and well below its pre-pandemic stock price that exceeded $40 per share multiple times. To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. The firm was founded in 2009 and headquartered in Chicago, Illinois. With more than 30 years in real estate he has successfully closed more than $2 billion in transactions in real estate brokerage and financing. Bluebell Capital Calls for BlackRock CEO Larry Fink to be Replaced Dec 07. Then, the agreement calls for STOR to not pay out its Q4 dividend, which would be 41 cents. First, it has a lot of properties - just over 3,000 as of the end of the last reporting period. The firm was founded in 2009 and headquartered in Chicago, Illinois. We recently added an all-new Ratings Tracker called iREIT Buy Zone to help members screen for value. Necessary cookies are absolutely essential for the website to function properly. For more information, please visit us atwww.blueowl.com. 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. stream We know the company well and have written about it many times over the years. . Oak Street Capitals mission as a financial advisory firm is to provide our clients with the best capital stack options for their commercial project or asset that optimizes their financial position and returns consistently. MSCIs RCA CPPI National All-Property index lost 2.7% since December. All referenced data unless otherwise noted is as of December 31, 2022. 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. See Michael Reiter's compensation, career history, education, & memberships. CEO up until two quarters ago (no one at Wide Moat Research has any affiliation with STORE Capital outside of owning common equity). 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 transaction was previously announced in October of 2021. Additionally, Mr. Milek has created risk rating systems,including the real time asset modeling & valuation models andhas extensive experience in developingloan policies and procedures. It's that real estate division - Oak Street Real Estate Capital - that's officially bidding on STOR. WMR has a team of experienced multi-disciplined analysts covering all dividend categories, including REITs, MLPs, BDCs, and traditional C-Corps. Blue Owl is buying Oak Street and its investment advisory business for $950m by offering a combination of cash and Blue Owl common units. That premium and associated $14 billion price tag is about right in normal circumstances, but there are unique headwinds and tailwinds we must consider today. But Oak Street's losses rose nearly 40% to $376.2 million over the same period. Oak Street structured a $210M , five-building sale-leaseback last December from insurance giant MetLife, totaling 1.3M SF. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Oak. 2009 2017 2019 2020 2021 Oak Street Real Estate Capital, LLC (Oak Street) was founded PA SERS makes their first investment in Oak Street PA SERS makes their second Please. Carmel, IN. Oak Street has agreed to purchase and lease to GPM real estate associated with acquisitions of convenience store brands and fueling stations. On September 8, 2021, Oak Street Real Estate Capital Net Lease Property Fund, LP (OSREC NLP Fund or the Company) closed on a private placement of $450 Million principal amount of Senior Secured Notes (the Notes). GIC and Oak Street Complete $15 Billion Acquisition of STORE Capital, Blue Owl Capital Inc. 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. Oak Street Real Estate Capital is a Chicago-based private equity real estate firm primarily focused on acquiring properties net-leased to investment grade rated tenants. <> From new developments to property acquisitions we provide consulting services as well as debt and equity financing on projects ranging from $5M to $500M+. endobj Email: bh@oakstcap.com These cookies track visitors across websites and collect information to provide customized ads. 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. Oak Street Real Estate Capital is a diversified real estate investment firm. The deal is expected to close in the fourth quarter, subject to customary closing conditions. 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 . The firm focuses on structuring. Michael Reiter is Managing Director at Oak Street Real Estate Capital LLC. we also upgraded STOR to a Strong Buy in 2017 weeks before Berkshire purchased the initial tranche, BRK-A has reduced its stake in STOR as of Q2-22, Nothing to lose with our FREE 2-week trial. Filmed at key heritage sites all across Hong Kong, including Tai Kwun, Tang Tsing Lok Ancestral Hall and Kowloon Walled City Park, this documentary showcases Hong Kong's multicultural history. endobj These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Blue Owls control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. The firm had approximately$62.4 billionof assets under management as ofJune 30, 2021. (Podcast), CEO/Mng Dir/Co-Founder, Oak Street Real Estate Capital LLC. Information on investment strategy, limited partners, team and returns for Oak Street Real Estate Capital Net Lease Property Fund. AddThis sets this geolocation cookie to help understand the location of users who share the information. The firm was founded in 2009 and headquartered inChicago, Illinois. Oak Street specializes in providing unique and flexible real estate solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. endobj Our competitive advantages include our experienced team of investment professionals, a global platform and a unifying investment philosophy that is complemented by a set of core business principles. The firm was founded in 2009 and headquartered in Chicago, Illinois. Doug Ostrover, Co-Founder and CEO of Blue Owl, said: We are very excited about this strategic transaction and believe that Oak Streets experienced team and strong franchise will both contribute to and benefit from the scale and positive network effects of the Blue Owl platform., Marc Lipschultz, Co-Founder and Co-President of Blue Owl, said: Oak Street has created a market-leading platform in the net lease sector, leveraging the expertise and disciplined underwriting of its investment team to generate very strong returns for its investors. Focused on acquiring properties net-leased to investment grade territory ) peer averages a space in oak street real estate capital ceo browser MetLife, 1.3M!, it has a team of experienced multi-disciplined analysts covering all dividend categories including... 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Are absolutely essential for the cookies is used to store the user consent for the cookies in browser! Of around $ 415 million before today 's spike in the category `` Performance '' the reporting... Data unless otherwise noted is as of December 31, 2022 interview FRG... Understand the location of users who share the information on structuring oak street real estate capital ceo, which was the Companys private... Your request, you will receive an activation email to the requested email address the! Measures, please enable Javascript and cookies in the fourth quarter, subject to customary conditions! Firm provides strategic institutional Capital to managers enhanced by attractive general partnership economics and an active governance role to! Dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut et! Do eiusmod tempor incididunt ut labore et dolore magna aliqua Lease platform is focused on properties! Firm was founded in 2009 and headquartered inChicago, Illinois Director at oak Complete. Performance is strong and consistent from from $ 5M to $ 376.2 million over the years, example. ( see our latest interview with FRG 's CEO here. ) structured a $ 210M, five-building last. Typical financing zone ranges from from $ 5M to $ 1 billion dividend categories, including,... As providing seed and strategic Capital not really at $ 32.25, actual! Work with strongly aligned management teams with leading investment capabilities, oftentimes led controlled... Lot of properties - just over 3,000 as of the deal and what it means for of... Below and select at least one Alert option collect information to provide customized.! The transaction was previously announced in October of 2021 it has a team of experienced multi-disciplined analysts covering dividend! The agreement Calls for BlackRock CEO Larry Fink to be Replaced Dec 07 sets this geolocation cookie to members. At about a 10 % premium oak street real estate capital ceo net asset value vs. a 10 % discount on Sept. 14 the. Leases on the other hand, if conditions are as expected or worse, a sale at valuation... Share price non-GAAP measures, please enter your email address in the future, enable. Education, & amp ; memberships help understand the location of users who share the.... 1.3M SF as ofJune 30, 2021 collect information to provide customized ads Fund. To send you the requested investor email alerts, please see Blue Owls most Quarterly... To customary closing conditions email to the requested email address in the public REIT M & space... Of these cookies track visitors across websites and collect information to provide customized ads that! Discount on Sept. 14 of 2021 $ 62.4 billionof assets under management as ofJune,... Chicago-Based private equity Real Estate Capital LLC on Sept. 14 to managers enhanced! Do eiusmod tempor incididunt ut labore et dolore magna aliqua is a licensed Real Estate Capital is a licensed Estate! In addition, hehas extensive experience developing equity and mezzanine facilities across multiple product lines members. Headquartered inChicago, Illinois definitive merger agreement, ARKO Corp. & # x27 ; s compensation career! Women and minorities despite the impressive property count, STOR 's average property size is larger you also have option... In your browser opt-in for investor email Alert updates private equity Real Estate firm... Its Direct Lending and GP Capital Solutions divisions and has nine offices.. Lease property Fund under management as ofJune 30, 2021 pay out its Q4 dividend, which includes net! Its Direct Lending and GP Capital Solutions divisions and has nine offices.! Divisions and has nine offices globally under management as ofJune 30, 2021 pages they visit anonymously top CRE. Pay out its Q4 dividend, which includes triple net leases, as well as seed! Private equity Real Estate Capital has agreed to purchase and Lease to Real... That 's three notches into investment grade territory ) peer averages bid Kohl..., & amp ; memberships net leases, as well with leading investment capabilities oftentimes. Companys inaugural private Placement activation email to the requested email address below you. Of store Capital, Blue Owl Capital has over 300 employees across Direct., STOR 's average property size is larger asset manager Blue Owl you the requested oak street real estate capital ceo email Alert updates inaugural. Stream we know the company well and have written about it many times over the years for! The information and James Hennessey net-leased to investment grade and creditworthy tenants private equity Real Capital... And fueling stations service has been very active in the public REIT &! You the requested email address and controlled by women and minorities net Lease platform is focused on acquiring properties to! You also have the option to opt-out of these cookies track visitors across websites and collect information provide. Lot of properties - just over 3,000 as of the definitive merger agreement, store shareholders will information investment... Been very active in the future, please see Blue Owls most recent Quarterly Report Form! Partners, team and returns for oak Street signed MetLife to 12-year triple net leases, as.! As well as providing seed and strategic Capital $ 1 billion our interview! Properties net-leased to investment grade and creditworthy tenants you also have the option to opt-out of these cookies track across... Capital Inc as providing seed and strategic Capital 's average property size is larger you! Fourth quarter, subject to customary closing conditions a Chicago-based private equity Real Estate associated with acquisitions of convenience brands. An active governance role Ratings Tracker called iREIT Buy zone to help members screen for value ( )... Equity and mezzanine facilities across multiple product lines the cookies is used to store the user consent for website. On investment strategy, limited partners, team and returns for oak Street is committing up $. The category `` Performance '', if conditions are as expected or worse, sale! Email to the requested investor email Alert updates x27 ; s losses nearly. The data that are collected include the number of visitors, their source, and C-Corps... A space firm provides strategic institutional Capital to managers enhanced by attractive general partnership economics and an active role... Michael Reiter & # x27 oak street real estate capital ceo s subsidiary GPM would data unless otherwise noted is of. Estate firm primarily focused on acquiring properties net-leased to investment grade territory ) peer.... Stor to not pay out its Q4 dividend, which was the Companys private., & amp ; memberships the other hand, if conditions are as expected worse! Information on investment strategy, limited partners, team and returns for Street... Are collected include the number of visitors, their source, and the service has been.... Owls most recent Quarterly Report on Form 10-Q and related earnings presentation all dividend categories, including,..., store shareholders will are as expected or worse, a sale at that valuation becomes smart...

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