(Brad Thomas targets 75% probability of acceptance.). Just like Buffett, we've been aggressive buyers of shares when the stock has a steep decline. A new report from proptech company Visual Lease digs into what corporate CRE executives are planning. Oak Street is the industry's preeminent net lease platform with meaningful capital, scale and expertise that will further expand Blue Owl's range of investment solutions. On one hand, STOR's stock decline of ~33% in the past two quarters means $32.25 per share is likely to irritate many investors (especially since there's no dividend in Q4). 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. 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. Our Mission Start Your Free Trial We've written in-depth articles on Blue Owl and will only touch on the most relevant points here. Vice President. 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). 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 . 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. CEO W. P. Carey Dave Gibbons '92 President Elberon Development Group Tom Grier '87 Managing Director JP Morgan Larissa Herczeg '96 Managing Partner Oak Street Real Estate Capital/Blue Owl Tom Hoban '95 President & CIO Kitson & Partners Malcolm Johnson '98 Founder & CEO Langdon Park Capital Bob Karnes '83 Managing Director BlackRock Matt Kenney Cap rates are rising, and while that creates opportunities for lucrative acquisitions, it also means pain for "bond-like" real estate investments. 6 0 obj "Illini Angels" is recruiting . It had $119 billion in assets under management ("AUM") as of the last reporting period. 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. How has Blue Owl garnered so much capital? Any such forward-looking statements are made pursuant to the safe harbor provisions available under applicable securities laws and speak only as of the date of this presentation. All referenced data unless otherwise noted is as of December 31, 2022. It is delivered on an as is basis without warranty or liability. Mr. Hampton has extensive experience structuring and closing construction loans and bridge loans as well. You also have the option to opt-out of these cookies. <>/XObject<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 720 540] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Oak Street Real Estate Capital has been one of the fastest growing managers in the private real estate space this past decade. It will lease back the space from Oak Street Real Estate Capital, the Chicago private-equity firm, under long-term leases. Kirkland & Ellis LLP acted as legal counsel to Blue Owl. Oak Street Real Estate Capital LLC Sep 2009 - Present13 years 6 months Chicago Private Equity Real Estate Vice President American Realty Capital May 2007 - Sep 20092 years 5 months. BlackRock: The ESG Issue Is . 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. 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. Set by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category . *May exclude premium content 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. Exclusive discounts on ALM and GlobeSt events. The cookie is used to store the user consent for the cookies in the category "Performance". April 21, 2021. <>/Metadata 3336 0 R/ViewerPreferences 3337 0 R>> You can unsubscribe to any of the investor alerts you are subscribed to by visiting the unsubscribe section below. STOR's historical financials encompass a period of very low interest rates - up until now. Kirkland & Ellis LLP acted as legal counsel to Blue Owl. This is the second major asset sale to be announced in recent weeks as Crombie recycles funds to invest in its ongoing development and . Oak Street specializes in providing flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. The valuation has come down markedly in 2022 and we recently upgraded STOR to a Strong Buy - that's our highest conviction. I wrote this article myself, and it expresses my own opinions. View Michael Reiter's business profile as Chief Operating Officer at Oak Street Real Estate Capital LLC. They were involved in Franchise Group's (FRG) bid for Kohl's (KSS), for example. Overnight on Wall Street is morning in Europe. Marketing and Client Relations. 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. Oak Street is offering STOR $32.25 per share in cash, or an 18% premium over the previous day's close. Again, this is not really at $32.25 as I pointed out. 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. I am not receiving compensation for it (other than from Seeking Alpha). The firm was founded in 2009 and headquartered in Chicago, Illinois. If you have an ad-blocker enabled you may be blocked from proceeding. Oaktree Capital Management is a leader among global investment managers specializing in alternative investments. The transaction, announced yesterday, reflects Blue Owl's ambitions to move beyond its roots. DFIN was Jason Clucas on LinkedIn: GIC and Oak Street Complete $15 Billion Acquisition of STORE Capital We also use third-party cookies that help us analyze and understand how you use this website. 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. 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. This just in. Oak Street Real Estate Capital is a diversified real estate investment firm. We consider NNN the closest peer and consider the price differential of these two since Volk left (April 15, 2022). This cookie is set by GDPR Cookie Consent plugin. And don't forget, Buffett owns shares in one REIT and one REIT only - STORE Capital (excluding SRG debt). Mr. Hampton founded Oak Street Capital in 2003. T@NY{*N 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. The transaction is expected to close in the fourth quarter of 2021 and is subject to customary closing conditions. GIC Real Estate, Inc. and Oak Street Real Estate Capital, LLC completed the acquisition of STORE Capital Corporation (NYSE:STOR) from Berkshire Hathaway Inc. (NYSE:BRK.A), BlackRock, Inc. (NYSE:BLK),The Vanguard Group, Inc. and others. 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. Download this eBook and learn how CRE professionals can proactively manage economic challenges by leveraging the power of data. 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. Ut enim ad minim veniam. Sep 2015 - Present7 years 6 months. 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. The deal is going through at about a 10% premium to net asset value vs. a 10% discount on Sept. 14. 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. Email: bh@oakstcap.com 2023 Blue Owl Capital Inc. All Rights Reserved. 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. Previously, Marc was the Vice President Acquistions at American Realty Capital and also held positions at Merrill, TM Associates Management. Markets never sleep, and neither does Bloomberg News. Marc Zahr, Oak Street Real Estate Capital LLC: Profile and Biography - Bloomberg Markets Live Now Bloomberg TV+ Bloomberg Surveillance Bloomberg Surveillance with Tom Keene,. xT]o0}pIMk;*RvPT6:xnyqtnZ\`|y Blue Owl is buying Oak Street and its investment advisory business for $950m by offering a combination of cash and Blue Owl common units. Email: bh@oakstcap.com 21917 Rock Wren Rd To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. The platform seeks to work with strongly aligned management teams with leading investment capabilities, oftentimes led and controlled by women and minorities. It does not store any personal data. Office 1005, (See our deep dive on Blackstone's private REIT here.). 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. 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 Seeding and Strategic Capital platform was founded with the focus of investing in early-stage real estate managers. Oak Street Real Estate Capital LLC is reportedly revisiting the possibility of buying real estate from Kohl's Corp. From new developments to property acquisitions we provide consulting services as well as debt and equity financing on projects ranging from $5M to $500M+. Then, the agreement calls for STOR to not pay out its Q4 dividend, which would be 41 cents. Find new & featured property located in your local city. 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. Grosvenor Business Tower, 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. Although human nature is to irrationally use the rearview mirror to drive our investment portfolios (e.g. Oak Street Real Estate Capital is a diversified real estate investment firm. Mr. Milek specializes in completingrisk assessments and action plans for distressed financial institutions. Navigating interest rate disruption: How real-time data can facilitate better CRE decisions amid volatility. The deal netted the retailer $250 million in proceeds.. 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. Well, it might, if things stabilize and investment AFFO spreads revert. 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 The transaction is expected to close in the fourth quarter of 2021. 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. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. Spicewood, TX 78669, Tel: +1 (312) 731-3391 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. I have no business relationship with any company whose stock is mentioned in this article. As per the report, Oak . Please. <> endobj All Rights Reserved. The firm had approximately $70.5 billion of assets under management as of September 30, 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. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. Oak Street specializes in providing unique and flexible real estate solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. Under the agreement, ARKO Corp.'s subsidiary GPM would. AddThis sets this cookie to ensure that the updated count is seen when one shares a page and returns to it, before the share count cache is updated. Carmel, IN. 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. The net lease funds provide corporate tenants with the ability to optimize their balance sheets, delivering immediate liquidity, tax benefits, and operational flexibility. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously. You can sign up for additional alert options at any time. Oak Street has agreed to purchase and lease to GPM real estate associated with acquisitions of convenience store brands and fueling stations. 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. WMR has a team of experienced multi-disciplined analysts covering all dividend categories, including REITs, MLPs, BDCs, and traditional C-Corps. Oak Street Real Estate Capital is a diversified real estate investment firm. 9 See similar companies for insight and prospecting. Oak. Oak Street Real Estate Capital is a Chicago-based private equity real estate firm primarily focused on acquiring properties net-leased to investment grade rated tenants. <> 1 0 obj ", 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. By providing your email address below, you are providing consent to Blue Owl to send you the requested Investor Email Alert updates. <> Prominent historians and conservation experts explain the architectural relevance of buildings ranging from houses of worship to former colonial outposts and tenements. Oak Street is the industry's preeminent net lease platform with meaningful capital, scale and expertise that will further expand Blue Owl's range of investment solutions. Owl and will only touch on the most relevant points here. ), universities and entities... 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