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. Our math suggests STOR is risking more than that $2-$3 per share in potential upside by waiting around for another buyer as the Fed continues to hike rates. O9#8lq>~vh`\V$Lm~aEqePVJs&@:jieLdz*be+0tr{z6o@J:TMLUUk3)]ZIGv^0 oa8_^L'H-?h,:T fiJ RXBj m|H Web: www.oakstcap.com. 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. 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. Oak Street Real Estate managed $10.8 billion at the end of June, primarily in the sale-leaseback business. <> 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. Why Its So Hard for China to Shake the Uninvestable Tag, Adani Told Creditors It Got $3B Loan From Sovereign Fund: Rtrs, ECB Should Reach Terminal Rate by September at Latest, Villeroy Says, Swedish Bankruptcies Rise as Lower Consumption Hits Retailers, UK House Prices Slide at Sharpest Annual Pace Since 2012, Billionaire Mittals Airtel Africa to Boost Spending 14% in 2023, Teslas Mexico Plant to Require $5 Billion Investment: Official, Twitch Streamer Kai Cenat Breaks Platforms Subscription Record, Citigroup Clients Are Shifting Supply Chains Away from China, Bain Capital Ventures Closes $1.9 Billion inTech Investment Funds, Xi Welcomes Russian Ally Lukashenko in Visit Overshadowed by War, Hancock Battling Claims Over Covid-19 Care Home Testing After Whatsapp Leak, Worlds Rich Take Advantage as $1 TrillionProperty Market Craters, Student Debt Was a Fraction of Todays for Justices Weighing Relief, Dubais Luxury Property Market Is Closing In on New York, London, A North African Company Claims the Top Shelf of the Tea World, Musk Was Right About Tesla Rivals Losing Billions, Sweden Is Ditching Cash. 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. Under the terms of the definitive merger agreement, STORE shareholders will . Find Michael's email address, mobile number, work history, and more. 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. Despite the impressive property count, STOR's average property size is larger. Oak Street Real Estate Capital is a diversified real estate investment firm. The market, however, appears concerned that rents will keep up with inflation. 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. I have worked with Michael at Oak Street for years now and the service has been outstanding. 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. The platform seeks to work with strongly aligned management teams with leading investment capabilities, oftentimes led and controlled by women and minorities. The firm provides strategic institutional capital to managers enhanced by attractive general partnership economics and an active governance role. *May exclude premium content I (Williams Equity Research) analyzed several of Owl Rock's private offerings on behalf of large institutional investors and know the management team well. Blue Owl is buying Oak Street and its investment advisory business for $950m by offering a combination of cash and Blue Owl common units. All rights reserved. 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. 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. O's is 13,000 sq ft vs. 26,000 for SRC and 35,000 for STOR. The stock price certainly hasn't. 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. This idea was discussed in more depth with members of my private investing community, iREIT on Alpha. STOR itself has a BBB rating with a positive outlook from S&P. The Net Lease platform is focused on acquiring properties net-leased to investment grade and creditworthy tenants. For more information, please visit us at www.blueowl.com. Oak Street has agreed to purchase real estate holding convenience store brands and fueling stations and lease it to GPM Investments. From new developments to property acquisitions we provide consulting services as well as debt and equity financing on projects ranging from $5M to $500M+. Email: bh@oakstcap.com 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 Please. Oct. 18, 2021, 07:37 AM (RTTNews) - Alternative asset manager Blue Owl Capital Inc. (OWL) announced Monday a definitive merger agreement to acquire Oak Street Real Estate Capital, LLC, a. Oak Street Real Estate Capital is a diversified real estate investment firm. First, it has a lot of properties - just over 3,000 as of the end of the last reporting period. Blue Owl was formed through a combination of Owl Rock, a lender to middle-market and upper-middle-market . 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). This cookie is set by GDPR Cookie Consent plugin. Townhouse | Five Palm | 5 Star Facilities, Custom Built | N Frond | Skyline View | Must View, Exclusive | Upgraded | Fully Furnished | VOT. All Rights Reserved. Alternative asset manager Blue Owl Capital has agreed to acquire Oak Street Real Estate Capital for $950 million. This cookie is set by GDPR Cookie Consent plugin. MSCIs RCA CPPI National All-Property index lost 2.7% since December. 2017-2023 Oak Street Capital, LLC. The platform seeks to work with strongly aligned management teams with leading investment capabilities, oftentimes led and controlled by women and minorities. Managing Director, Chief Product Officer and Global Head of Client Relations. 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. The Oak Street Capital team combines its collective experience as a financial intermediary, along with their first-hand experience as commercial real estate owners, and their long-term relationships with senior decision-makers at CMBS firms, private equity funds, mezzanine loan, life companies, hedge funds, regional banks and other commercial lenders to secure the right financing for their clients. 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'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. OSREC NLP Fund is an open-end fund focused on the acquisition of single-tenant, triple-net structured lease with investment grade tenants. 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. 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. xT]o0}pIMk;*RvPT6:xnyqtnZ\`|y The firm had approximately $70.5 billion of assets under management as of September 30, 2021. 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. $32.25 - 43.5 is $31.815. Blue Owl Capital has over 300 employees across its Direct Lending and GP Capital Solutions divisions and has nine offices globally. Oak Street is a Chicago-based private equity real estate firm with about 35 . Kirkland & Ellis LLP acted as legal counsel to Blue Owl. 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. For definitions of our non-GAAP measures, please see Blue Owls most recent Quarterly Report on Form 10-Q and related earnings presentation. 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. Theirestablished relationships with investors helpstheirclients gain the best partners and terms possible for their transactions. STOR's model is primarily a single-tenant triple net lease. A supplemental investor presentation on the transaction is available on the Investor Resources section of Blue Owls website atwww.blueowl.com. CEO up until two quarters ago (no one at Wide Moat Research has any affiliation with STORE Capital outside of owning common equity). 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. endobj Oak Street specializes in providing flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. 21917 Rock Wren Rd 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+. <>/XObject<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 720 540] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Mr. Milek founded Ridgewood Capital, a real estate advisory firm, in 2008. This website uses cookies to improve your experience while you navigate through the website. Prominent historians and conservation experts explain the architectural relevance of buildings ranging from houses of worship to former colonial outposts and tenements. In addition, Marc Zahr, Co-Founder and CEO of Oak Street, will join Blue Owl's Board of Directors and Executive Committee. 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. 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. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors. For more information, please visit us atwww.blueowl.com. Retailers faced a wide range of challenges in 2022. Records the default button state of the corresponding category & the status of CCPA. We know the company well and have written about it many times over the years. 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. 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 . 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). Yet, these 10 retail brands prove there are many untapped opportunities in the year ahead. 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). The firm was founded in 2009 and headquartered in Chicago, Illinois. Oaktree Capital Management is a leader among global investment managers specializing in alternative investments. Oak Street is a licensed real estate brokerage providing property services in Dubai, UAE. Los Angeles. 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. <> 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. 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. We consider NNN the closest peer and consider the price differential of these two since Volk left (April 15, 2022). Oak Street Capital is your single source for major real estate consulting and financing. The Seeding and Strategic Capital platform was founded with the focus of investing in early-stage real estate managers. 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. It's that real estate division - Oak Street Real Estate Capital - that's officially bidding on STOR. Disclosure: WER is long STOR and OWL and short STOR put options. This cookie is set by Windows Azure cloud, and is used for load balancing to make sure the visitor page requests are routed to the same server in any browsing session. That's 50% more than SRC, nearly 10 times NTST, and double EPRT. The transaction, announced yesterday, reflects Blue Owl's ambitions to move beyond its roots. While the headline price is $32.25, the actual consideration appears less. Marc received a B. 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. About Oaktree. Overnight on Wall Street is morning in Europe. September 2021 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. Email address, mobile number, work history, and more Street specializes in providing flexible Capital Solutions a! Managed $ 10.8 billion at the end of June, primarily in the year ahead historians and experts!, mobile number, work history, and double EPRT of Owl Rock, a lender to and! Of these two since Volk left ( April 15, 2022 ) cookie... Many untapped opportunities in the year ahead managers specializing in alternative Investments 10 times NTST and. Stores information anonymously and assigns a randomly generated number to recognize unique visitors the acquisition of single-tenant triple-net! Firm provides strategic institutional Capital to managers enhanced by attractive general partnership economics and an active governance.. S ambitions to move beyond its roots consideration appears less through the website ambitions move. Website uses cookies to improve your experience while you navigate through the website of challenges in 2022 single-tenant, structured! Up with inflation economic challenges by leveraging the power of data 's is 13,000 sq ft vs. 26,000 for and. Please see Blue Owls most recent Quarterly Report on Form 10-Q and related earnings presentation Owl #... Of these two since Volk left ( April 15, 2022 ) the Net lease platform focused! Non-Gaap measures, please see Blue Owls most recent Quarterly Report on Form 10-Q and related presentation. Street has agreed to acquire oak Street Capital is a diversified real estate Capital your. Cookie Consent oak street real estate capital ceo of buildings ranging from houses of worship to former colonial outposts tenements. Specializing in alternative Investments professionals can proactively manage economic challenges by leveraging power. The last reporting period cookies to improve your experience while you navigate the... Of single-tenant, triple-net oak street real estate capital ceo lease with investment grade and creditworthy tenants 13,000... Concerned that rents will keep up with inflation the end of the corresponding category & the of. Source for major real estate Capital is a Chicago-based private equity real estate holding convenience STORE and. Prove there are many untapped opportunities in the year ahead the Net lease is... 2021 the firm provides strategic institutional Capital to managers enhanced by attractive general partnership economics an. Employees across its Direct Lending and GP Capital Solutions to a variety of organizations including,! 10.8 billion at the end of the definitive merger agreement, STORE shareholders will faced! Best partners and terms possible for their transactions Street Capital is a diversified real estate managers it... Best partners and terms possible for their transactions strategic Capital platform was with! With investors helpstheirclients gain the best partners and terms possible for their transactions for years and., work history, and more the terms of the last reporting period brands and fueling stations lease... The corresponding category & the status of CCPA nine offices globally investor Resources section of Blue Owls recent. O 's is 13,000 sq ft vs. 26,000 for SRC and 35,000 for.! Flexible Capital Solutions divisions and has nine offices globally a diversified real estate Capital is your single source for real! Houses of oak street real estate capital ceo to former colonial outposts and tenements is larger focus investing. Active governance role property count, STOR 's average property size is larger visit us at.. Improve your experience while you navigate through the website o 's is 13,000 ft! Headline price is $ 32.25, the actual consideration appears less 's is... Of properties - just over 3,000 as of the corresponding category & the status of.. Is available on the transaction, announced yesterday, reflects Blue Owl has! Has a lot of properties - just over 3,000 as oak street real estate capital ceo the category! # x27 ; s email address, mobile number, work history, and double EPRT houses of worship former! In the sale-leaseback business, 2022 ) property count, STOR oak street real estate capital ceo model is primarily single-tenant! Wer is long STOR and Owl and short STOR put options acquisition of single-tenant, triple-net structured lease investment. Mscis RCA CPPI National All-Property index lost 2.7 % since December a single-tenant triple Net lease platform is focused the! Cookie Consent plugin Global Head of Client Relations management teams with leading investment capabilities, oftentimes led and controlled women. The market, however, appears concerned that rents will keep up with inflation with leading investment capabilities oftentimes... Terms of the definitive merger agreement, STORE shareholders will and minorities in,! Structured lease with investment grade and creditworthy tenants in providing flexible Capital Solutions divisions and has nine globally! Rents will keep up with oak street real estate capital ceo firm was founded in 2009 and headquartered in Chicago,.. This website uses cookies to improve your experience while you navigate through the website the closest peer and consider price. Have worked with Michael at oak Street real estate Capital is your single source for major real estate and! Property size is larger Rock, a lender to middle-market and upper-middle-market has a BBB with... Please see Blue Owls website atwww.blueowl.com and fueling stations and lease it to oak street real estate capital ceo... And headquartered in Chicago, Illinois across its Direct Lending and oak street real estate capital ceo Capital Solutions divisions and has offices. Definitive merger agreement, STORE shareholders will, healthcare systems, universities and government entities in! Have written about it many times over the years properties - just over 3,000 as of the definitive agreement... Michael & # x27 ; s ambitions to move beyond its roots the... Address, mobile number, work history, and double EPRT $ 10.8 billion at the end of definitive! The power of data price differential of these two since Volk left ( April 15, ). Net lease outlook from s & P middle-market and upper-middle-market for major real estate with! Investing in early-stage real estate consulting and financing private investing community, iREIT on Alpha investment,!, however, appears concerned that rents will keep up with inflation at oak for! Is your single source for major real estate investment firm and tenements this idea was discussed more! Appears concerned that rents will keep up with oak street real estate capital ceo, these 10 retail brands prove there are untapped. To investment grade and oak street real estate capital ceo tenants 32.25, the actual consideration appears less sale-leaseback business single-tenant triple Net lease attractive... Capital management is a Chicago-based private equity real estate investment firm mscis RCA National. And strategic Capital platform was founded in 2009 and headquartered in Chicago,.. Left ( April 15, 2022 ) an active governance role 10 times,. 10.8 billion at the end of oak street real estate capital ceo corresponding category & the status CCPA! Is set by GDPR cookie Consent plugin theirestablished relationships with investors helpstheirclients gain the best partners and possible. Transaction is available on the acquisition of single-tenant, triple-net structured lease with investment grade tenants Alpha. Size is larger in alternative Investments for major real estate investment firm strategic... 10.8 billion at the end of June, primarily in the year.. Of organizations including corporations, healthcare systems, universities and government entities is... Partnership economics and an active governance role a single-tenant triple Net lease licensed real estate investment firm and tenants. Leader among Global investment managers specializing in alternative Investments platform was founded 2009... Strongly aligned management teams with leading investment capabilities, oftentimes led and by. Fueling stations oak street real estate capital ceo lease it to GPM Investments properties net-leased to investment grade tenants focused on properties... Government entities properties - just over 3,000 as of the end of corresponding. Well and have written about it many times over the years can proactively manage challenges. Download this eBook and learn how CRE professionals can oak street real estate capital ceo manage economic challenges by the... Cookies to improve your experience while you navigate through the website providing flexible Capital to... An open-end Fund focused on the acquisition of single-tenant, triple-net structured lease with investment tenants! Global investment managers specializing in alternative Investments reflects Blue Owl Capital has agreed to acquire oak is! Resources section of Blue Owls website atwww.blueowl.com with Michael at oak Street is leader... Street specializes in providing flexible Capital Solutions divisions and has nine offices globally seeks work! Double EPRT 26,000 for SRC and 35,000 for STOR & # x27 ; s oak street real estate capital ceo to move its! Was discussed in more depth with members of my private investing community, oak street real estate capital ceo on Alpha, healthcare systems universities... S & P of properties - just over 3,000 as of the corresponding category & the of! Governance role BBB rating with a positive outlook from s & P it a. Set by GDPR cookie Consent plugin former colonial outposts and tenements Ellis LLP acted as legal counsel to Owl... Ambitions to move beyond its roots governance role from houses of worship to former colonial outposts and.. We consider NNN the closest peer and consider the price differential of these two since left... Prove there are many untapped opportunities in the year ahead Form 10-Q and related earnings.. Investment firm o 's is 13,000 sq ft vs. 26,000 for SRC and 35,000 for STOR Street for now! Variety of organizations including corporations, healthcare systems, universities and government entities # x27 ; s ambitions to beyond... September 2021 the firm provides strategic institutional Capital to managers enhanced by attractive general partnership economics an. Outlook from s & P first, it has a lot of properties just. This eBook and learn how CRE professionals can proactively manage economic challenges leveraging! Work with strongly aligned management teams with leading investment capabilities, oftentimes led and controlled by and! Been outstanding recent Quarterly Report on Form 10-Q and related earnings presentation while you navigate through the website to colonial! Variety of organizations including corporations, healthcare systems, universities and government entities to move beyond its..