"technical analysis"), it's estimates of future cash flow that we discount to reach an investment's value today. 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. These cookies track visitors across websites and collect information to provide customized ads. View Michael Reiter's business profile as Chief Operating Officer at Oak Street Real Estate Capital LLC. Oak Street specializes in providing flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. 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. Ut enim ad minim veniam. But opting out of some of these cookies may affect your browsing experience. STOR's model is primarily a single-tenant triple net lease. Oak Street client service is spectacular. It is delivered on an as is basis without warranty or liability. Email: bh@oakstcap.com The transaction is expected to close in the fourth quarter of 2021. Oak Streets active net lease funds primarily focus on single tenant properties, net leased to investment grade and creditworthy tenants, under long duration leases, providing for predictable income. The #1 Service For Safe and Reliable REIT Income. DFIN was Jason Clucas on LinkedIn: GIC and Oak Street Complete $15 Billion Acquisition of STORE Capital Bloomberg Daybreak Europe, anchored live from London, tracks breaking news in Europe and around the world. STOR strikes a great balance of a large, established platform that isn't too big. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. STOR's historical financials encompass a period of very low interest rates - up until now. First, it has a lot of properties - just over 3,000 as of the end of the last reporting period. CEO up until two quarters ago (no one at Wide Moat Research has any affiliation with STORE Capital outside of owning common equity). 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. 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. Grosvenor Business Tower, Marc Zahr, Oak Street Real Estate Capital LLC: Profile and Biography - Bloomberg Markets Live Now Bloomberg TV+ Bloomberg Surveillance Bloomberg Surveillance with Tom Keene,. Previously, Marc was the Vice President Acquistions at American Realty Capital and also held positions at Merrill, TM Associates Management. Oak Street's founding partners originate from the UK and have been operating in the UAE since 2010 with an extensive background in sales, leasing and surveying. Please disable your ad-blocker and refresh. The Seeding and Strategic Capital platform was founded with the focus of investing in early-stage real estate managers. To do that, we need to start with what differentiates STOR. Oak Street Real Estate Capital is a diversified real estate investment firm. Marketing and Client Relations. Blue Owl has approximately 250 employees across its Direct Lending and GP Capital Solutions divisions and has six offices globally. Set by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category . 41 + 2.5 is 43.5 cents. Start Your Free Trial 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. 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. This week, it was announced that GIC and Blue Owl's Oak Street agreed to acquire STORE for $14B in an all-cash transaction. This cookie is set by GDPR Cookie Consent plugin. Oak Street is a licensed real estate brokerage providing property services in Dubai, UAE. Real Assets. 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. Download this whitepaper to learn which top retail CRE brands are poised for big things in 2023. endobj 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. 4 0 obj Understandably, investors hope any premium to be on top of the long-term average cash flow multiple rather than a beaten down valuation. Oak Street Real Estate Capital is a diversified real estate investment firm. (Again, the true price is less than $32.25 adjusting for suspended dividends.). I have worked with Michael at Oak Street for years now and the service has been outstanding. 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. 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. I wrote this article myself, and it expresses my own opinions. KeyBanc Capital Markets (KBCM) served as Sole Placement Agent on the transaction, which was the Companys inaugural private placement. 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. However, remember that ALL REITs get wasted in times of uncertainty and concerns about rates and recessions. Theirestablished relationships with investors helpstheirclients gain the best partners and terms possible for their transactions. Prominent historians and conservation experts explain the architectural relevance of buildings ranging from houses of worship to former colonial outposts and tenements. 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). Our Mission Oak Street Real Estate Capital is a diversified real estate investment firm. A new report from proptech company Visual Lease digs into what corporate CRE executives are planning. The firm focuses on structuring sale-leasebacks, which includes triple net leases, as well as providing seed and strategic capital. Since the deal is all cash, another buyer must improve on the $32.25 to be feasible. First, investors had anticipated a dividend increase for Q3. Under the agreement, ARKO Corp.'s subsidiary GPM would. WMR has a team of experienced multi-disciplined analysts covering all dividend categories, including REITs, MLPs, BDCs, and traditional C-Corps. This website uses cookies to improve your experience while you navigate through the website. The firm was founded in 2009 and headquartered in Chicago, Illinois. September 2021 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. This just in. Installed by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. 1 0 obj Mr. Hampton has extensive experience structuring and closing construction loans and bridge loans as well. Disclosure: WER is long STOR and OWL and short STOR put options. If you were Blue Owl or another bidder, wouldn't you want a lower price in this market too? 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. 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 is private equity real estate firm based in Chicago that focuses on structuring sale-leasebacks. Barsha Heights. You must click the activation link in order to complete your subscription. "Illini Angels" is recruiting . To continue that growth, it has joined forces with a larger asset management group. The WMR brands include: (1) iREIT on Alpha (Seeking Alpha), and (2) The Dividend Kings (Seeking Alpha), and (3) Wide Moat Research. After submitting your request, you will receive an activation email to the requested email address. 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 . Oak Street Real Estate Capital is a diversified real estate investment firm. 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. 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. 7 0 obj 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. Oak Street Capital assists sponsors in accessing equity financing for commercial real estate joint ventures. This article was coproduced with Williams Equity Research ('WER'). 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 . To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. These elements explain why Blue Owl is both interested in STOR and at $32.25 per share, but two key questions remain: Is it good for STOR shareholders and what's the probability of obtaining a better price? 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. Bloomberg Surveillance: Early Edition with Francine Lacqua live from London, bringing insight on global markets and the top business stories of the day. 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. Mr. Milek hasmore than twentyyears of experience inall aspects ofcommercial real estate finance. Just Wait for the Fallout, From Chips to TikTok, Gina Raimondo Is at the Center of Bidens China Policy, Russian Airlines Are Still Flying High Despite Sanctions, The NFLsTop Talent Agency Bought by Venture Investors, BNP Ordered to Pay A Banker Fired Years After Alleged Sexual Harassment, A New Era of Books Helps Black Workers Navigate Corporate America, EU Strikes Landmark Deal to Fight Greenwashing in Bond Market, Singapore Fund Seeks $125 Million for Stoves in India, Kenya, Richest Atlanta District Inches Closer to Seceding From City, NYCs Shadow TransitNetwork SeeksaGreenerFuture, Kansas Citys $1.5 Billion Airport Renovation Spurs Hopes for Business Boom, Singapore Crypto Lender Hodlnaut's Founders Propose Selling Business Rather Than Liquidating Firm, Celsius Examiner Report Mentions FTX More Than 150 Times. 3 0 obj 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 . Just like Buffett, we've been aggressive buyers of shares when the stock has a steep decline. I wrote this article myself, and it expresses my own opinions. Despite the impressive property count, STOR's average property size is larger. The annual rent escalators built into its leases are 1.8% and considered sufficient in most environments. 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. The deal is going through at about a 10% premium to net asset value vs. a 10% discount on Sept. 14. 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 specializes in providing flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. A. degree from University of Dayton. 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). If you have an ad-blocker enabled you may be blocked from proceeding. % If I had to guess, he doesn't mind the 5.9% and 6.1% annual growth in AFFO and dividends, respectively, since 2016. Oak Street Real Estate Capital is a diversified real estate investment firm. Heis also the editor of The Forbes Real Estate Investor., Thomas has also been featured in Barron's, Forbes Magazine, Kiplingers, US News & World Report, Money, NPR, Institutional Investor, GlobeStreet, CNN, Newsmax, and Fox., He is the #1 contributing analyst on Seeking Alpha in 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2022 (based on page views) and has over 106,000 followers (on Seeking Alpha). 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 is used to store the user consent for the cookies in the category "Other. This cookie is set by GDPR Cookie Consent plugin. endobj We use essential cookies to allow our site to function. 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 private equity firm could buy up to $2 billion worth of the. Sophie Aldrich, CFA. Oak Street specializes in providing flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. All Rights Reserved. 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 in Chicago, Illinois. Our typical financing zone ranges from from $5M to $500M. Spicewood, TX 78669, Tel: +1 (312) 731-3391 The firm was founded in 2009 and headquartered in Chicago, Illinois. 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. Oak Street Capital is your single source for major real estate consulting and financing. For more information, please visit us at www.blueowl.com. 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. All Rights Reserved. The Seeding and Strategic Capital business focuses on investing in early-stage real estate managers across various industry sectors. 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. 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. See our latest interview with FRG's CEO here. Marc received a B. Sep 2015 - Present7 years 6 months. . The firm provides strategic institutional capital to managers enhanced by attractive general partnership economics and an active governance role. AED4+X(( Chris Ahn. Zahr and Hennessey compare the offer to corporate sale-leaseback . endobj The Net Lease platform is focused on acquiring properties net-leased to investment grade and creditworthy tenants. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. <> Oak Street Real Estate Capital is a diversified real estate investment firm. 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. 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