Faucibus tristique felis potenti ultrices ornare rhoncus semper hac facilisi Rutrum tellus lorem sem velit nisi non pharetra in dui. 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. 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. With a key focus on client satisfaction and transactional transparency, Oak Street prides itself on a vast network of repeat clients. Vice President. It works only in coordination with the primary cookie. First, it has a lot of properties - just over 3,000 as of the end of the last reporting period. In September 2022, Oak Street and GIC agreed to acquire Store Capital for $14 Billion. In addition, hehas extensive experience developing equity and mezzanine facilities across multiple product lines. Berkshire Global Advisors served as financial advisor andWillkie Farr& Gallagher LLP acted as legal counsel to Oak Street. Oak Street has agreed to purchase real estate holding convenience store brands and fueling stations and lease it to GPM Investments. SCOTTSDALE, Ariz. & SINGAPORE & CHICAGO, February 03, 2023--STORE Capital Corporation (NYSE: STOR, "STORE", "STORE Capital" or the "Company"), an internally managed net-lease real estate . % Oak Street Real Estate Capital has agreed to be bought by Blue Owl Capital for up to $1.6bn (1.4bn). What does this mean for CRE professionals? 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. AED4+X(( 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 Real Estate Capital Katie Byrne Senior Manager WIPFLI Tracy Treger Principal Syndicated Equities William Exeter Chief Executive Officer Exeter 1031 Exchange Services Moderator. Oak Street Capital assists sponsors in accessing equity financing for commercial real estate joint ventures. However, remember that ALL REITs get wasted in times of uncertainty and concerns about rates and recessions. This article was coproduced with Williams Equity Research ('WER'). Blue Owl, formed through a merger of Owl Rock Capital Partners and Dyal Capital Partners, is making its first acquisition since going public through a blank-check company earlier this year. 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. The firm IPO'd in 2014, and that's a date we should keep in mind. NEW YORKandCHICAGO,Oct. 18, 2021 Blue Owl Capital Inc. (Blue Owl) (NYSE:OWL) announced today it has entered into a definitive merger agreement to acquire Oak Street Real Estate Capital, LLC (Oak Street) and its investment advisory business. I have no business relationship with any company whose stock is mentioned in this article. Our typical financing zone ranges from from $5M to $500M. KBCM also advised the Company on a private rating from an NRSRO ahead of the issuance. 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 . 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. Yet, these 10 retail brands prove there are many untapped opportunities in the year ahead. 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. 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. Los Angeles. Mr. Hampton has extensive experience structuring and closing construction loans and bridge loans as well. 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. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously. The annual rent escalators built into its leases are 1.8% and considered sufficient in most environments. Oak Street Real Estate Capital is a diversified real estate investment firm. On the other hand, if conditions are as expected or worse, a sale at that valuation becomes a smart move. Oak Street Real Estate Capital is a diversified real estate investment firm. Hisexperience includes providing strategic solutions for debt restructurings,anddispositions, asset valuations, liquidation strategies, and portfolio assessments. Blue Owl was formed through a combination of Owl Rock, a lender to middle-market and upper-middle-market . 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 provides strategic institutional capital to managers enhanced by attractive general partnership economics and an active governance role. Oak Street Real Estate Capital is a diversified real estate investment firm. Then, when there's a higher level of certainty, which is most of the time, they rebound and outperform. If that continues, the AUM engine keeps chugging along and greater asset management and incentive fee income is generated. Exclusive discounts on ALM and GlobeSt events. ", Marc Zahr, Co-Founder and CEO of Oak Street, said: "Through its direct lending and GP stakes solutions, Blue Owl has built a one-stop shop for alternative asset managers in solving capital needs. "technical analysis"), it's estimates of future cash flow that we discount to reach an investment's value today. 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. 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. Cap rates are rising, and while that creates opportunities for lucrative acquisitions, it also means pain for "bond-like" real estate investments. If you experience any issues with this process, please contact us for further assistance. 3 0 obj The firm was founded in 2009 and headquartered inChicago, Illinois. <> To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Oak Street Real Estate Capital is a diversified real estate investment firm. endobj stream 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 focuses on two primary strategies: structuring sale-leasebacks, which includes triple net leases, as well as providing seed and strategic capital. <> Oak Street Real Estate Capital is a diversified real estate investment firm. DFIN was Jason Clucas on LinkedIn: GIC and Oak Street Complete $15 Billion Acquisition of STORE Capital This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector. 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. Marketing and Client Relations. 2017-2023 Oak Street Capital, LLC. 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. 7 0 obj 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. This cookie is set by GDPR Cookie Consent plugin. Oak Street specializes in providing unique and flexible real estate solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. It's not complicated - performance is strong and consistent. But they eventually overcorrect. All Rights Reserved. Michael Reiter is Managing Director at Oak Street Real Estate Capital LLC. Please disable your ad-blocker and refresh. from 8 AM - 9 PM ET. Since the deal is all cash, another buyer must improve on the $32.25 to be feasible. The firm focuses on structuring sale-leasebacks, which includes triple net leases, as well as providing seed and strategic capital. This idea was discussed in more depth with members of my private investing community, iREIT on Alpha. Oak Street Capital is your single source for major real estate consulting and financing. 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 focuses on structuring sale-leasebacks, which includes triple net leases, as well as providing seed and strategic capital. Monitor your investments 24 hours a day, around the clock from around the globe. The cookie is used to store the user consent for the cookies in the category "Analytics". 1 0 obj Kirkland & Ellis LLP acted as legal counsel to Blue Owl. 9 See similar companies for insight and prospecting. Set by addthis.com to determine the usage of addthis.com service. The platform seeks to work with strongly aligned management teams with leading investment capabilities, oftentimes led and controlled by women and minorities. Berkshire Global Advisors served as financial advisor and Willkie Farr & Gallagher LLP and Gibson, Dunn & Crutcher LLP acted as legal counsel to Oak Street. 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. STOR itself has a BBB rating with a positive outlook from S&P. Well, it might, if things stabilize and investment AFFO spreads revert. Oak Street structured a $210M , five-building sale-leaseback last December from insurance giant MetLife, totaling 1.3M SF. Sep 2015 - Present7 years 6 months. Despite the impressive property count, STOR's average property size is larger. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". In August 2021, Oak Street acquired The Bow in Calgary for $1.2 billion. Blue Owl Capital is an alternative asset manager that provides investors access to Direct Lending and GP Capital Solutions strategies through a variety of products. Blue Owl has approximately 250 employees across its Direct Lending and GP Capital Solutions divisions and has six offices globally. Oak street is private equity real estate firm based in Chicago that focuses on structuring sale-leasebacks. Spicewood, TX 78669, Tel: +1 (312) 731-3391 Office 1005, 14 times to 15) for a share price around $35 - but no higher. 41 + 2.5 is 43.5 cents. For more information, please visit us at www.blueowl.com. Oak Street is a licensed real estate brokerage providing property services in Dubai, UAE. 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. Prominent historians and conservation experts explain the architectural relevance of buildings ranging from houses of worship to former colonial outposts and tenements. I wrote this article myself, and it expresses my own opinions. 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.. The firm had approximately $70.5 billion of assets under management as of September 30, 2021. 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 firm was founded in 2009 and headquartered in Chicago, Illinois. This cookie is set by GDPR Cookie Consent plugin. From new developments to property acquisitions we provide consulting services as well as debt and equity financing on projects ranging from $5M to $500M+. endobj The products, services, information and/or materials contained within these web pages may not be available for residents of certain jurisdictions. When typing in this field, a list of search results will appear and be automatically updated as you type. Functional '' consent plugin Director at oak Street real estate Capital is your single source for major real estate has... 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