Markets never sleep, and neither does Bloomberg News. Oak street is private equity real estate firm based in Chicago that focuses on structuring sale-leasebacks. Disclosure: WER is long STOR and OWL and short STOR put options. Your article was successfully shared with the contacts you provided. Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. 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. The firm was founded in 2009 and headquartered in Chicago, Illinois. All Rights Reserved. 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. Previously, Marc was the Vice President Acquistions at American Realty Capital and also held positions at Merrill, TM Associates Management. 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 is offering STOR $32.25 per share in cash, or an 18% premium over the previous day's close. The net lease funds provide corporate tenants with the ability to optimize their balance sheets, delivering immediate liquidity, tax benefits, and operational flexibility. This idea was discussed in more depth with members of my private investing community, iREIT on Alpha. Copyright 2023 ALM Global, LLC. This cookie is set by GDPR Cookie Consent plugin. 5 0 obj "Illini Angels" is recruiting . 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. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. I have no business relationship with any company whose stock is mentioned in this article. 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. (Podcast), Will Smoking-Monkey JPEGsClog UpBitcoins Blockchain? Our Mission The Net Lease platform is focused on acquiring properties net-leased to investment grade and creditworthy tenants. His extensive experience includes debt refinancing and restructuring, mezzanine loan executions, preferred and joint venture equity, private equity. Given the long-term AFFO multiple of 15-16 times is no longer realistic, a transaction above 14 is at least fair based on that metric. Blue Owl is buying Oak Street and its investment advisory business for $950m by offering a combination of cash and Blue Owl common units. When typing in this field, a list of search results will appear and be automatically updated as you type. Oak Street is a licensed real estate brokerage providing property services in Dubai, UAE. Oak Street Real Estate Capital is a diversified real estate investment firm. 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. 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. Oak Street signed MetLife to 12-year triple net leases on the buildings . 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 . To continue that growth, it has joined forces with a larger asset management group. Blue Owl Capital has over 300 employees across its Direct Lending and GP Capital Solutions divisions and has nine offices globally. You can unsubscribe to any of the investor alerts you are subscribed to by visiting the unsubscribe section below. Join iREIT on Alpha today to get the most in-depth research that includes REITs, mREIT, Preferreds, BDCs, MLPs, ETFs, Builders, Asset Managers, and we added Prop Tech SPACs to the lineup. Please disable your ad-blocker and refresh. 3 0 obj Web: www.oakstcap.com. 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. On one hand, STOR's stock decline of ~33% in the past two quarters means $32.25 per share is likely to irritate many investors (especially since there's no dividend in Q4). The firm had approximately $70.5 billion of assets under management as of September 30, 2021. 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). x\Te. Ut enim ad minim veniam. 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). Oak Street Real Estate Capital is a diversified real estate investment firm. Theirestablished relationships with investors helpstheirclients gain the best partners and terms possible for their transactions. Oak Street specializes in providing flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. The transaction is anticipated to be approximately 5-7% accretive to Distributable Earnings per Share starting in 2022. It does not store any personal data. Oak Street's Chicago office is now an additional office for Blue Owl. 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. 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. 14 times to 15) for a share price around $35 - but no higher. A Record 25% of Redfin Users are Looking to Move to a New City, More Companies Are Adding Space Than Removing, But Only a Year Out, Unlimited access to GlobeSt and other free ALM publications, Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications, 1 free article* every 30 days across the ALM subscription network, Exclusive discounts on ALM events and publications. After you have typed in some text, hit ENTER to start searching Myles C. Milek, SeniorAdvisor, Founder of Ridgewood Capital. BlackRock: The ESG Issue Is . September 2021 . I am not receiving compensation for it (other than from Seeking Alpha). <>/Metadata 3336 0 R/ViewerPreferences 3337 0 R>> Alternative asset manager Blue Owl Capital has agreed to acquire Oak Street Real Estate Capital for $950 million. We also use third-party cookies that help us analyze and understand how you use this website. AddThis sets this cookie to track page visits, sources of traffic and share counts. The transaction is expected to close in the fourth quarter of 2021. 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. %PDF-1.7 The Seeding and Strategic Capital platform was founded with the focus of investing in early-stage real estate managers. Oak Street specializes in providing unique and flexible real estate solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. Crombie REIT ( CRR-UN-T) will sell a majority non-managing interest in 15 additional grocery store-anchored retail properties across Canada to Oak Street Real Estate Capital of Chicago for $193 million. To learn more about the cookies we use, please see our. As per the report, Oak . The WMR brands include: (1) iREIT on Alpha (Seeking Alpha), and (2) The Dividend Kings (Seeking Alpha), and (3) Wide Moat Research. Set by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category . Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business. endobj Mr. Milek founded Ridgewood Capital, a real estate advisory firm, in 2008. If you were Blue Owl or another bidder, wouldn't you want a lower price in this market too? I wrote this article myself, and it expresses my own opinions. Oak Street Funding. 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. Download this eBook and learn how CRE professionals can proactively manage economic challenges by leveraging the power of data. Oak Street was founded in 2009 by Marc Zahr and James Hennessey. This cookie is set by GDPR Cookie Consent plugin. (Brad Thomas targets 75% probability of acceptance.). 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'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 deal is expected to close in the fourth quarter, subject to customary closing conditions. 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. STOR strikes a great balance of a large, established platform that isn't too big. Michael Reiter is Managing Director at Oak Street Real Estate Capital LLC. Los Angeles. Oak Street Real Estate Capital, LLC (Oak Street) was founded in 2009 as a private equity real estate firm and is based in Chicago, IL. The Seeding and Strategic Capital business focuses on investing in early-stage real estate managers across various industry sectors. When used in this press release, the words estimates, projected, expects, anticipates, forecasts, plans, intends, believes, seeks, may, will, would, should, future, propose, target, goal, objective, outlook and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. A portfolio with a 13-plus year weighted average lease term, ~2% annual rent escalators (some track CPI, but that tends to lag "real" inflation in our experience), and no concentration in investment grade rated tenants is not necessarily what you want going into a period of sustained inflation, higher interest rates, and a recession. 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. Oak Street Real Estate Capital Katie Byrne Senior Manager WIPFLI Tracy Treger Principal Syndicated Equities William Exeter Chief Executive Officer Exeter 1031 Exchange Services Moderator. STOR's leverage based on long-term debt as of the end of Q2 was 41%. The transaction is expected to close in the fourth quarter of 2021 and is subject to customary closing conditions. The cookie is used to store the user consent for the cookies in the category "Performance". Marketing and Client Relations. Oak Street has agreed to purchase real estate holding convenience store brands and fueling stations and lease it to GPM Investments. The current commercial real estate (CRE) landscape faces disruption from economic and geopolitical fallout. 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. 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 Net Lease platform is focused on acquiring properties net-leased to investment grade and creditworthy tenants. The transaction was previously announced in October of 2021. First, investors had anticipated a dividend increase for Q3. Oak Street Real Estate Capital LLC Sep 2009 - Present13 years 6 months Chicago Private Equity Real Estate Vice President American Realty Capital May 2007 - Sep 20092 years 5 months. 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.. 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 . The 51% and 93% compound annual growth rate in fee-paying AUM and fee related earnings, respectively, demonstrates the immense success they've had in that market. Oak Street will commit up to $1 billion to the program for one year. Find new & featured property located in your local city. Cap rates are rising, and while that creates opportunities for lucrative acquisitions, it also means pain for "bond-like" real estate investments. The firms 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 transaction was previously announced in October of 2021. Oak. Marc Zahr is the Managing Partner & Chief Executive Officer at Oak Street Real Estate Capital based in Chicago, Illinois. And don't forget, Buffett owns shares in one REIT and one REIT only - STORE Capital (excluding SRG debt). This article was coproduced with Williams Equity Research ('WER'). However, remember that ALL REITs get wasted in times of uncertainty and concerns about rates and recessions. 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. Oak Street Capital assists sponsors in accessing equity financing for commercial real estate joint ventures. <> 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. The firm was founded in 2009 and headquartered in Chicago, Illinois. Mr. Hampton has extensive experience structuring and closing construction loans and bridge loans as well. 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. Its placing comes after raising a total of $6.56 billion in equity in the last five years, primarily for investment in US commercial and healthcare properties. 1 0 obj The Net Lease platform is focused on acquiring properties net-leased to investment grade and creditworthy tenants. It will lease back the space from Oak Street Real Estate Capital, the Chicago private-equity firm, under long-term leases. Issued by Microsoft's ASP.NET Application, this cookie stores session data during a user's website visit. Oak Street Capital is your single source for major real estate consulting and financing. Find Michael's email address, mobile number, work history, and more. 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 . Before we get into the specifics of the acquisition, we need to understand the buyer's perspective. After submitting your request, you will receive an activation email to the requested email address. Use the PitchBook Platform to explore the full profile. xT]o0}pIMk;*RvPT6:xnyqtnZ\`|y While the headline price is $32.25, the actual consideration appears less. 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. Oak Street Real Estate Capital is a diversified real estate investment firm. We know the company well and have written about it many times over the years. An old trick of buying a company with its own cash flow from operations. Prominent historians and conservation experts explain the architectural relevance of buildings ranging from houses of worship to former colonial outposts and tenements. Submitting your request, you will receive an activation email to the program for one year you... Quarter of 2021 and is subject to customary closing conditions in Chicago, Illinois Realty Capital and held! 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