As mentioned in that article, Berkshire Hathaway owns 14.8 million shares, which had a market value of around $415 million before today's spike in the share price. Understandably, investors hope any premium to be on top of the long-term average cash flow multiple rather than a beaten down valuation. You can unsubscribe to any of the investor alerts you are subscribed to by visiting the unsubscribe section below. Spicewood, TX 78669, Tel: +1 (312) 731-3391 With a key focus on client satisfaction and transactional transparency, Oak Street prides itself on a vast network of repeat clients. How has Blue Owl garnered so much capital? 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. A. degree from University of Dayton. We've written in-depth articles on Blue Owl and will only touch on the most relevant points here. AED4+X(( a market value of around $415 million before today's spike in the share price. Los Angeles. Although human nature is to irrationally use the rearview mirror to drive our investment portfolios (e.g. Blue Owl assumes no obligation to update or revise any such forward-looking statements except as required by law. The transaction, announced yesterday, reflects Blue Owl's ambitions to move beyond its roots. Again, this is not really at $32.25 as I pointed out. The deal is going through at about a 10% premium to net asset value vs. a 10% discount on Sept. 14. The firm focuses on structuring. Oak Street Real Estate Capital has been one of the fastest growing managers in the private real estate space this past decade. The private equity firm could buy up to $2 billion worth of the. STOR has no investment grade tenants as of the last reporting period, while O has 43.2%. The Net Lease platform is focused on acquiring properties net-leased to investment grade and creditworthy tenants. Download this eBook and learn how CRE professionals can proactively manage economic challenges by leveraging the power of data. 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. The stock price certainly hasn't. 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 focuses on two primary strategies: structuring sale-leasebacks, which includes triple net leases, as well as providing seed and strategic capital. 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 . Issued by Microsoft's ASP.NET Application, this cookie stores session data during a user's website visit. This article was coproduced with Williams Equity Research ('WER'). This cookie is set by GDPR Cookie Consent plugin. You can sign up for additional alert options at any time. The deal is expected to close in the fourth quarter, subject to customary closing conditions. Oak Street is a licensed real estate brokerage providing property services in Dubai, UAE. It had $119 billion in assets under management ("AUM") as of the last reporting period. 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. 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). These cookies track visitors across websites and collect information to provide customized ads. 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. 41 + 2.5 is 43.5 cents. Oak Street has been very active in the public REIT M&A space. Then, the agreement calls for STOR to not pay out its Q4 dividend, which would be 41 cents. To learn more about the cookies we use, please see our. Monitor your investments 24 hours a day, around the clock from around the globe. STOR's leverage based on long-term debt as of the end of Q2 was 41%. 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.. Mr. Milek founded Ridgewood Capital, a real estate advisory firm, in 2008. From new developments to property acquisitions we provide consulting services as well as debt and equity financing on projects ranging from $5M to $500M+. 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. 3 0 obj
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. 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. 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. I have no business relationship with any company whose stock is mentioned in this article. The platform seeks to work with strongly aligned management teams with leading investment capabilities, oftentimes led and controlled by women and minorities. The firm focuses on structuring sale-leasebacks, which includes triple net leases, as well as providing seed and strategic capital. 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. An old trick of buying a company with its own cash flow from operations. Markets never sleep, and neither does Bloomberg News. Oak Street specializes in providing flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. Oak Street signed MetLife to 12-year triple net leases on the buildings . 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. And this offer includes a 2-Week FREE TRIAL plus my FREE book. O's way bigger at nearly 11,500 properties, but that's a whale very few acquirers can realistically take down. 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. We are excited to join the Blue Owl team and add our flexible real estate solutions to the platform.". The Seeding and Strategic Capital business focuses on investing in early-stage real estate managers across various industry sectors. 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. Oak Street Capital is your single source for major real estate consulting and financing. Oak Street specializes in providing flexible capital 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. Overnight on Wall Street is morning in Europe. 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). 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. This cookie is set by GDPR Cookie Consent plugin. 2 0 obj
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 . With more than 30 years in real estate he has successfully closed more than $2 billion in transactions in real estate brokerage and financing. STOR's weighted average lease term of 13.2 years also is excellent and only bested by EPRT's 13.8. Oak Street has agreed to purchase real estate holding convenience store brands and fueling stations and lease it to GPM Investments. 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). Kirkland & Ellis LLP acted as legal counsel to Blue Owl. Kirkland & Ellis LLP acted as legal counsel to Blue Owl. Ut enim ad minim veniam. This is the second major asset sale to be announced in recent weeks as Crombie recycles funds to invest in its ongoing development and . September 2021 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. 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. Oak Streets founding partners originate from the UK and have been operating in the UAE since 2010 with an extensive background in sales, leasing and surveying. The Seeding and Strategic Capital platform was founded with the focus of investing in early-stage real estate managers. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously. But opting out of some of these cookies may affect your browsing experience. KeyBanc Capital Markets (KBCM) served as Sole Placement Agent on the transaction, which was the Companys inaugural private placement. OSREC NLP Fund is an open-end fund focused on the acquisition of single-tenant, triple-net structured lease with investment grade tenants. The firm was founded in 2009 and headquartered in Chicago, Illinois. The firm was founded in 2009 and headquartered in Chicago, Illinois. Our typical financing zone ranges from from $5M to $500M. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". And it said in a statement that it would use the proceeds from. A supplemental investor presentation on the transaction is available on the Investor Resources section of Blue Owls website atwww.blueowl.com. The firm was founded in 2009 and headquartered inChicago, Illinois. Zahr and Hennessey compare the offer to corporate sale-leaseback . 14 times to 15) for a share price around $35 - but no higher. These cookies ensure basic functionalities and security features of the website, anonymously. This website uses cookies to improve your experience while you navigate through the website. The firm's breadth of offerings and permanent capital base enables it to offer a differentiated, holistic platform of capital solutions to participants throughout the private market ecosystem, including alternative asset managers and private middle market corporations. Oak Street offers a unique platform combining direct and indirect real estate strategies across two lines of business, its Net Lease platform and its Seeding and Strategic Capital platform. Set by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category . The firm was founded in 2009 and headquartered in Chicago, Illinois. Oak Street Real Estate Capital is a diversified real estate investment firm. The platform provides strategic institutional capital to managers typically enhanced by attractive general partnership economics and an active governance role. Blue Owl Capital Inc. has agreed to acquire Oak Street Real Estate Capital LLC, adding real estate financing capabilities to its product offering. What does this mean for CRE professionals? Mr. Milek hasmore than twentyyears of experience inall aspects ofcommercial real estate finance. Real Assets. 2023 Blue Owl Capital Inc. All Rights Reserved. Blue Owl Capital Completes Acquisition of Oak Street Real Estate Capital, https://www.prnewswire.com/news-releases/blue-owl-capital-completes-acquisition-of-oak-street-real-estate-capital-301451517.html. Oak Street offers a unique platform combining direct and indirect real estate strategies across two lines of business, its Net Lease platform and its Seeding and Strategic Capital platform. O9#8lq>~vh`\V$Lm~aEqePVJs&@:jieLdz*be+0tr{z6o@J:TMLUUk3)]ZIGv^0 oa8_^L'H-?h,:T fiJ RXBj
m|H The transaction is expected to close in the fourth quarter of 2021 and is subject to customary closing conditions. Mr. Hampton founded Oak Street Capital in 2003. 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. If you have an ad-blocker enabled you may be blocked from proceeding. 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 . Oak Street Capital LLC I have no business relationship with any company whose stock is mentioned in this article. 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. 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. 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. <>
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. stream
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. 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. Office 1005,
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). This just in. All Rights Reserved. The cookies is used to store the user consent for the cookies in the category "Necessary". Mr. Hampton has extensive experience structuring and closing construction loans and bridge loans as well. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. 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 specializes in providing unique and flexible real estate solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. Marc Zahr is the Managing Partner & Chief Executive Officer at Oak Street Real Estate Capital based in Chicago, Illinois. To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. The current commercial real estate (CRE) landscape faces disruption from economic and geopolitical fallout. Marc Zahr, Oak Street Real Estate Capital LLC: Profile and Biography - Bloomberg Markets Live Now Bloomberg TV+ Bloomberg Surveillance Bloomberg Surveillance with Tom Keene,. Well, it might, if things stabilize and investment AFFO spreads revert. First, it has a lot of properties - just over 3,000 as of the end of the last reporting period. 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. Oak Street Capital is your single source for major real estate consulting and financing. To do that, we need to start with what differentiates STOR. This cookie is set by GDPR Cookie Consent plugin. Bed Bath & Beyond will sell about half of its real estate to a private equity firm and then lease back the space, a deal expected to earn the company more than $250 million. Managing Director, Chief Product Officer and Global Head of Client Relations. 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 . Oak. 2017-2023 Oak Street Capital, LLC. Necessary cookies are absolutely essential for the website to function properly. Michael Reiter is Managing Director at Oak Street Real Estate Capital LLC. I (Williams Equity Research) analyzed several of Owl Rock's private offerings on behalf of large institutional investors and know the management team well. That ties O and beats SRC's 28%. Our Mission The firm was founded in 2009 and headquartered in Chicago, Illinois. vJM;P|AS!U|}6&fMOw89_KP4iOvDp6mbf }@TcGD6 M>Qadx"D(r?HsNL rH
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The firm was founded in 2009 and headquartered in Chicago, Illinois. The Chicago-based net lease specialist agreed to sell itself to Blue Owl Capital, a recently listed company that manages $62.4 billion of direct loans and capital solutions products . I have worked with Michael at Oak Street for years now and the service has been outstanding. endobj
While the headline price is $32.25, the actual consideration appears less. Analytical cookies are used to understand how visitors interact with the website. For those reasons, I don't expect a higher bid, but if it does occur, I think it will be one more turn (e.g. endstream
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