Kirkland & Ellis LLP acted as legal counsel to Blue Owl. . Berkshire Global Advisors served as financial advisor and Willkie Farr & Gallagher LLP and Gibson, Dunn & Crutcher LLP acted as legal counsel to Oak Street. Oak Street client service is spectacular. Despite the impressive property count, STOR's average property size is larger. 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 is private equity real estate firm based in Chicago that focuses on structuring sale-leasebacks. Past performance is not a guide to future results. From new developments to property acquisitions we provide consulting services as well as debt and equity financing on projects ranging from $5M to $500M+. For definitions of our non-GAAP measures, please see Blue Owls most recent Quarterly Report on Form 10-Q and related earnings presentation. vJM;P|AS!U|}6&fMOw89_KP4iOvDp6mbf }@TcGD6 M>Qadx"D(r?HsNL rH
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Fortunately, WER owns equity in both, so it's basically a wash. Brad Thomas has exited his position in STOR and reallocated it to another net lease REIT mentioned today on iREIT on Alpha's chat board. Bloomberg Daybreak Europe, anchored live from London, tracks breaking news in Europe and around the world. 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. This press release includes certain non-GAAP financial measures, including Distributable Earnings per Share, that are not prepared in accordance with accounting principles generally accepted inthe United States(GAAP) and that may be different from non-GAAP financial measures used by other companies. AddThis sets this geolocation cookie to help understand the location of users who share the information. The Seeding and Strategic Capital platform was founded with the focus of investing in early-stage real estate managers. Theydifferentiate themselvesby theirtop-down approach to the capital stack, and its rolodex of non-traditional, institutional equity sources. The Seeding and Strategic Capital platform was founded with the focus of investing in early-stage real estate managers. 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. Kirkland & Ellis LLP acted as legal counsel to Blue Owl. 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 . 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. Set by addthis.com to determine the usage of addthis.com service. (Again, the true price is less than $32.25 adjusting for suspended dividends.). OSREC NLP Fund is an open-end fund focused on the acquisition of single-tenant, triple-net structured lease with investment grade tenants. 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. As a shareholder, we want to know if we should take the $32.25 while the iron is hot or wait for a better price. STOR's leverage based on long-term debt as of the end of Q2 was 41%. I (Williams Equity Research) analyzed several of Owl Rock's private offerings on behalf of large institutional investors and know the management team well. <>
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). Oak Street Funding. In August 2021, Oak Street acquired The Bow in Calgary for $1.2 billion. Mr. Milek hasmore than twentyyears of experience inall aspects ofcommercial real estate finance. Oak Street has been very active in the public REIT M&A space. The cookie is used to store the user consent for the cookies in the category "Analytics". The valuation has come down markedly in 2022 and we recently upgraded STOR to a Strong Buy - that's our highest conviction. Copyright 2023 ALM Global, LLC. 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. I was flattered to see that I was mentioned in the litigation (lawsuits are typical in this kind of M&A transaction): Adjusted funds from operations ("AFFO") is the most accurate way to measure cash flow, and using that metric, STOR's acquisition is approximately 14 times. 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. BlackRock: The ESG Issue Is . Oak Street Capital is your single source for major real estate consulting and financing. "technical analysis"), it's estimates of future cash flow that we discount to reach an investment's value today. The transaction was previously announced in October of 2021. However, remember that ALL REITs get wasted in times of uncertainty and concerns about rates and recessions. To learn more about the cookies we use, please see our. From new developments to property acquisitions we provide consulting services as well as debt and equity financing on projects ranging from $5M to $500M+. 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. Navigating interest rate disruption: How real-time data can facilitate better CRE decisions amid volatility. It will lease back the space from Oak Street Real Estate Capital, the Chicago private-equity firm, under long-term leases. This cookie is set by GDPR Cookie Consent plugin. Investor ContactAnn DaiHead of Investor Relationsowlir@blueowl.com, Media ContactProsek PartnersDavid Wells/Nick TheccanatPro-blueowl@prosek.com. We know the company well and have written about it many times over the years. <>
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. DFIN was Jason Clucas on LinkedIn: GIC and Oak Street Complete $15 Billion Acquisition of STORE Capital Markets never sleep, and neither does Bloomberg News. We specialize in REITs and high-quality dividend companies. 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. The deal netted the retailer $250 million in proceeds.. Blue Owl assumes no obligation to update or revise any such forward-looking statements except as required by law. 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. Please disable your ad-blocker and refresh. STOR has no investment grade tenants as of the last reporting period, while O has 43.2%. 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. It's not complicated - performance is strong and consistent. And this offer includes a 2-Week FREE TRIAL plus my FREE book. 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 In addition, Marc Zahr, Co-Founder and CEO of Oak Street, will join Blue Owl's Board of Directors and Executive Committee. Marketing and Client Relations. J/kX0FTTDc(_LQ^^~xl{y|?wn3(( bp8Z]43w40Ko^zytwt5ODIMC_) ohi|*l='^Sv9D_R]|,`"0pA=zY
M7rLX^ZX9=s)oApyd]RECbM. The firm was founded in 2009 and headquartered in Chicago, Illinois. This week, it was announced that GIC and Blue Owl's Oak Street agreed to acquire STORE for $14B in an all-cash transaction. Retailers faced a wide range of challenges in 2022. It's that real estate division - Oak Street Real Estate Capital - that's officially bidding on STOR. Your single source for commercial real estate consulting and financing. (See our deep dive on Blackstone's private REIT here.). AED4+X(( Our analysis suggests a 50%-plus probability of the board accepting Blue Owl's offer of $32.25 per share ('WER'). 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. 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. Download this whitepaper to learn which top retail CRE brands are poised for big things in 2023. Miami reclaimed the top destination for the first time since August. Oak Street has agreed to purchase and lease to GPM real estate associated with acquisitions of convenience store brands and fueling stations. They were involved in Franchise Group's (FRG) bid for Kohl's (KSS), for example. The firm focuses on two primary strategies: structuring sale-leasebacks, which includes triple net leases, as well as providing seed and strategic capital. We are excited to join the Blue Owl team and add our flexible real estate solutions to the platform.". Our typical financing zone ranges from from $5M to $500M. endstream
KeyBanc Capital Markets (KBCM) served as Sole Placement Agent on the transaction, which was the Companys inaugural private placement. Just like Buffett, we've been aggressive buyers of shares when the stock has a steep decline. 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. endobj
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. Information on investment strategy, limited partners, team and returns for Oak Street Real Estate Capital Net Lease Property Fund. About Us Financing Areas Contact Us 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. Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com. Townhouse | Five Palm | 5 Star Facilities, Custom Built | N Frond | Skyline View | Must View, Exclusive | Upgraded | Fully Furnished | VOT. Nothing to lose with our FREE 2-week trial. It does not store any personal data. While the headline price is $32.25, the actual consideration appears less. This cookie is set by GDPR Cookie Consent plugin. Oak Street structured a $210M , five-building sale-leaseback last December from insurance giant MetLife, totaling 1.3M SF. After submitting your request, you will receive an activation email to the requested email address. . *May exclude premium content (Brad Thomas targets 75% probability of acceptance.). 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. Well, it might, if things stabilize and investment AFFO spreads revert. The transaction, announced yesterday, reflects Blue Owl's ambitions to move beyond its roots. His extensive experience includes debt refinancing and restructuring, mezzanine loan executions, preferred and joint venture equity, private equity. 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. 9 See similar companies for insight and prospecting. Sophie Aldrich, CFA. Blue Owl Capital Inc. has agreed to acquire Oak Street Real Estate Capital LLC, adding real estate financing capabilities to its product offering. Vice President. We use essential cookies to allow our site to function. I have no business relationship with any company whose stock is mentioned in this article. Again, this is not really at $32.25 as I pointed out. The Net Lease platform is focused on acquiring properties net-leased to investment grade and creditworthy tenants. Investor ContactAnn DaiHead of Investor Relations[emailprotected], Media ContactProsek PartnersDavid Wells/Nick Theccanat[emailprotected], Cision Distribution 888-776-0942 STOR's historical financials encompass a period of very low interest rates - up until now. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Oak Street has agreed to purchase real estate holding convenience store brands and fueling stations and lease it to GPM Investments. 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). 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. 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 . Blue Owl Capital has over 300 employees across its Direct Lending and GP Capital Solutions divisions and has nine offices globally. The firm was founded in 2009 and headquartered in Chicago, Illinois. 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. 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. We look forward to working closely together and are excited for what the future holds. 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. The annual rent escalators built into its leases are 1.8% and considered sufficient in most environments. A. degree from University of Dayton. The #1 Service For Safe and Reliable REIT Income. If you have an ad-blocker enabled you may be blocked from proceeding. For more information, please visit us at www.blueowl.com. <>/XObject<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 720 540] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>>
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. Think 2008 -2020. We are excited to join the Blue Owl team and add our flexible real estate solutions to the platform.". Sep 2015 - Present7 years 6 months. I wrote this article myself, and it expresses my own opinions. 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). Oak Street Real Estate managed $10.8 billion at the end of June, primarily in the sale-leaseback business. Chris Ahn. Five-Building sale-leaseback last December from insurance giant MetLife, oak street real estate capital ceo 1.3M SF a $,! And Reliable REIT Income property Fund users who share the information the from. 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