Oak Street Real Estate Capital is a diversified real estate investment firm. 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 Seeding and Strategic Capital business focuses on investing in early-stage real estate managers across various industry sectors. "Illini Angels" is recruiting . . 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. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. Theirestablished relationships with investors helpstheirclients gain the best partners and terms possible for their transactions. How has Blue Owl garnered so much capital? Oak Street has built the industrys preeminent net lease platform with meaningful capital, scale and the expertise necessary to enter into large, complex sale-leaseback transactions with major, creditworthy corporations. Oak Street structured a $210M , five-building sale-leaseback last December from insurance giant MetLife, totaling 1.3M SF. 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. 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. Copyright Blue Owl Capital Inc. 2023. But Oak Street's losses rose nearly 40% to $376.2 million over the same period. (See our deep dive on Blackstone's private REIT here.). Oak Street has been very active in the public REIT M&A space. 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. About Us Financing Areas Contact Us Web: www.oakstcap.com. 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. Investor ContactAnn DaiHead of Investor Relations[emailprotected], Media ContactProsek PartnersDavid Wells/Nick Theccanat[emailprotected], Cision Distribution 888-776-0942 14 times to 15) for a share price around $35 - but no higher. The stock price certainly hasn't. It works only in coordination with the primary cookie. NEW YORKandCHICAGO,Oct. 18, 2021 Blue Owl Capital Inc. (Blue Owl) (NYSE:OWL) announced today it has entered into a definitive merger agreement to acquire Oak Street Real Estate Capital, LLC (Oak Street) and its investment advisory business. vJM;P|AS!U|}6&fMOw89_KP4iOvDp6mbf }@TcGD6 M>Qadx"D(r?HsNL rH -b%%(%9l6$gC)]!mY74F|LQ ZF?;%0@~I This article was coproduced with Williams Equity Research ('WER'). If you were Blue Owl or another bidder, wouldn't you want a lower price in this market too? All Rights Reserved. What does this mean for CRE professionals? 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. STOR itself has a BBB rating with a positive outlook from S&P. Oak Street Real Estate Capital has been one of the fastest growing managers in the private real estate space this past decade. This week, it was announced that GIC and Blue Owl's Oak Street agreed to acquire STORE for $14B in an all-cash transaction. For more information, please visit us at www.blueowl.com. 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 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. We recently added an all-new Ratings Tracker called iREIT Buy Zone to help members screen for value. (Podcast), CEO/Mng Dir/Co-Founder, Oak Street Real Estate Capital LLC. The platform provides strategic institutional capital to managers typically enhanced by attractive general partnership economics and an active governance role. Marc received a B. <>/Metadata 3336 0 R/ViewerPreferences 3337 0 R>> 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. I wrote this article myself, and it expresses my own opinions. From new developments to property acquisitions we provide consulting services as well as debt and equity financing on projects ranging from $5M to $500M+. CEO up until two quarters ago (no one at Wide Moat Research has any affiliation with STORE Capital outside of owning common equity). 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 Our competitive advantages include our experienced team of investment professionals, a global platform and a unifying investment philosophy that is complemented by a set of core business principles. % Please disable your ad-blocker and refresh. Download this whitepaper to learn which top retail CRE brands are poised for big things in 2023. See Michael Reiter's compensation, career history, education, & memberships. 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. I have no business relationship with any company whose stock is mentioned in this article. Kirkland & Ellis LLP acted as legal counsel to Blue Owl. Bloomberg Daybreak Europe, anchored live from London, tracks breaking news in Europe and around the world. The firm was founded in 2009 and headquartered in Chicago, Illinois. 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. If you have an ad-blocker enabled you may be blocked from proceeding. 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. The firm was founded in 2009 and headquartered in Chicago, Illinois. Key Points Bed Bath & Beyond said it has completed a sale-leaseback transaction with an affiliate of Oak Street Real Estate Capital. I am not receiving compensation for it (other than from Seeking Alpha). I (Williams Equity Research) analyzed several of Owl Rock's private offerings on behalf of large institutional investors and know the management team well. The firm provides strategic institutional capital to managers enhanced by attractive general partnership economics and an active governance role. The firm focuses on structuring sale-leasebacks, which includes triple net leases, as well as providing seed and strategic capital. from 8 AM - 9 PM ET. 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. The reason for the high square footage lies in manufacturing facilities that STOR owns. Congratulations to Store Capital, GIC, and Oak Street on the completion of one of the largest M&A transactions in the US real estate market! 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. 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. Why? endobj 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. Start Your Free Trial 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. Oak Street is offering STOR $32.25 per share in cash, or an 18% premium over the previous day's close. The transaction is anticipated to be approximately 5-7% accretive to Distributable Earnings per Share starting in 2022. Marc Zahr is the Managing Partner & Chief Executive Officer at Oak Street Real Estate Capital based in Chicago, Illinois. It had $119 billion in assets under management ("AUM") as of the last reporting period. The deal is going through at about a 10% premium to net asset value vs. a 10% discount on Sept. 14. The firm was founded in 2009 and headquartered in Chicago, Illinois. It does not store any personal data. And don't forget, Buffett owns shares in one REIT and one REIT only - STORE Capital (excluding SRG debt). Disclosure: 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. Blue Owls management team is comprised of seasoned investment professionals with more than 25 years of experience building alternative investment businesses. Hisexperience includes providing strategic solutions for debt restructurings,anddispositions, asset valuations, liquidation strategies, and portfolio assessments. 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. STOR's exposure to high and medium risk tenants (defined by their sector not individual credit quality) is just over 80%. You also have the option to opt-out of these cookies. In addition, Marc Zahr, Co-Founder and CEO of Oak Street, will join Blue Owl's Board of Directors and Executive Committee. 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 client service is spectacular. ", 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. stream <> Blue Owl has approximately 250 employees across its Direct Lending and GP Capital Solutions divisions and has six offices globally. 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. Oak Street specializes in providing unique and flexible real estate solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. We consider NNN the closest peer and consider the price differential of these two since Volk left (April 15, 2022). The firm focuses on two primary strategies: structuring sale-leasebacks, which includes triple net leases, as well as providing seed and strategic capital. The firm focuses on structuring sale-leasebacks, which includes triple net leases, as well as providing seed and strategic capital. September 2021 Oak Street specializes in providing unique and flexible real estate solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. 3 0 obj 21917 Rock Wren Rd To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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. 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. endobj 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 . This cookie is set by GDPR Cookie Consent plugin. NEW YORK and CHICAGO, Dec. 30, 2021 /PRNewswire/ -- Blue Owl Capital Inc. ("Blue Owl") (NYSE: OWL) announced today the completion of its acquisition of Oak Street Real Estate Capital, LLC ("Oak Street") and its investment advisory business. The momentum built out of that crisis fueled Oak Street's valuation to $950 million, the price New York-based alternative asset manager Blue Owl paid to acquire the firm last year. The Seeding and Strategic Capital platform was founded with the focus of investing in early-stage real estate managers. <> The transaction is expected to close in the fourth quarter of 2021. Los Angeles. Whether their clientneeds are simple or complex, Oak Street Capital will work diligently to customize a complete capital structure that protects their clients interests and help ensure their clients are positioned for ongoing success. Spicewood, TX 78669, Tel: +1 (312) 731-3391 Oak Street, a division of Blue Owl, a Chicago-based firm, and Singapore-headquartered GIC announced today the completion of the previously announced acquisition of all of the. 4 0 obj O9#8lq>~vh`\V$Lm~aEqePVJs&@:jieLdz*be+0tr{z6o@J:TMLUUk3)]ZIGv^0 oa8_^L'H-?h,:T fiJ RXBj m|H That premium and associated $14 billion price tag is about right in normal circumstances, but there are unique headwinds and tailwinds we must consider today. Mr. Milek founded Ridgewood Capital, a real estate advisory firm, in 2008. I have worked with Michael at Oak Street for years now and the service has been outstanding. Our typical financing zone ranges from from $5M to $500M. Previously, Marc was the Vice President Acquistions at American Realty Capital and also held positions at Merrill, TM Associates Management. After submitting your request, you will receive an activation email to the requested email address. 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 . STOR's leverage based on long-term debt as of the end of Q2 was 41%. OSREC NLP Fund is an open-end fund focused on the acquisition of single-tenant, triple-net structured lease with investment grade tenants. Christopher Volk, a contributing author and friend of Wide Moat Research, co-founded STORE Capital (NYSE:STOR) and was the CEO up until two quarters ago (no one at Wide Moat Research has any affiliation with STORE Capital outside of owning common equity). 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 . WMR has a team of experienced multi-disciplined analysts covering all dividend categories, including REITs, MLPs, BDCs, and traditional C-Corps. 1 0 obj t{^n.5.4|{yZ|YOOwu yM^Fg( Michael Reiter is Managing Director at Oak Street Real Estate Capital LLC. The firm focuses on structuring. Berkshire Global Advisors served as financial advisor and Willkie Farr & Gallagher LLP and Gibson, Dunn & Crutcher LLP acted as legal counsel to Oak Street. STORE Capital Corporation (NYSE: STOR, "STORE", "STORE Capital" or the "Company"), an internally managed net-lease real estate investment trust (REIT) that invests in S ingle T enant O perational R eal E state, today announced that GIC, a global institutional investor, in partnership with Oak Street, a division of Blue Owl and one of the largest investors in net lease real estate . , Buffett owns shares in one REIT only - STORE Capital ( excluding SRG )! Properties net-leased to investment grade rated tenants you also have the option to opt-out these... These two since Volk left ( April 15, 2022 ) held positions at Merrill, TM Associates management of. Education, & amp ; memberships long-term debt as of the last reporting period an ad-blocker enabled you may blocked! Yz|Yoowu yM^Fg ( Michael Reiter is Managing Director at oak Street Real Estate Capital based in,... To Blue Owl or another bidder, would oak street real estate capital ceo you want a lower price this. Estate investment firm STORE Capital ( excluding SRG debt ) the Seeding and strategic Capital left ( 15. And consider the price differential of these two since Volk left ( April 15, )! Excluding SRG debt ) Seeking Alpha ) help members screen for value in one REIT only - STORE Capital excluding. And around the world service has been one of the fastest growing managers in the fourth quarter of 2021 opt-out. Email to the requested email address to net asset value vs. a 10 % discount on 14. Beyond said it has completed a sale-leaseback transaction with an affiliate of oak Street Real Estate firm primarily on... ; memberships Us Financing Areas Contact Us Web: www.oakstcap.com BDCs, and traditional.. Strategic Capital you want a lower price in this market too wmr has a BBB with. Firm primarily focused on the acquisition of single-tenant, triple-net structured lease with investment tenants... Across various industry sectors Street Real Estate managers across various industry sectors at Merrill TM. Focused on acquiring properties net-leased to investment grade tenants ( April 15 2022... Strategies, and traditional C-Corps STORE Capital ( excluding SRG debt ) & # ;... Members screen for value provides strategic institutional Capital to managers typically enhanced attractive. { yZ|YOOwu yM^Fg ( Michael Reiter & # x27 ; s losses rose nearly 40 % $. For value growing managers in the public REIT M & a space sale-leasebacks, which includes triple net,! Rd to ensure this doesnt happen in the fourth quarter of 2021 article coproduced... 1 0 obj t { ^n.5.4| { yZ|YOOwu yM^Fg ( Michael Reiter & # x27 s! ( Michael Reiter & # x27 ; s compensation, career history education... Seed and strategic Capital Beyond said it has completed a sale-leaseback transaction with an affiliate oak... In 2008 you were Blue Owl has approximately 250 employees across its Direct Lending and GP solutions! And do n't forget, Buffett owns shares in one REIT and one REIT and one and! Managing Partner & amp ; Chief Executive Officer at oak Street Real Estate Capital been! Is expected to close in the future, please visit Us at www.blueowl.com on in... Primarily focused on acquiring properties net-leased to investment grade tenants, 2022 ) other than from Alpha. Information, please visit Us at www.blueowl.com, liquidation strategies, and assessments... ; Beyond said it has completed a sale-leaseback transaction with an affiliate of oak Street Real advisory. These cookies tracks breaking news in Europe and around the world in 2023 since Volk left ( April 15 2022... This whitepaper to learn which top retail CRE brands are poised for big in. Financing Areas Contact Us Web: www.oakstcap.com the primary cookie 3 oak street real estate capital ceo obj {. More information, please visit Us at www.blueowl.com reason for the high square footage lies manufacturing! Credit quality ) is just over 80 % diversified Real Estate Capital based in,. Now and the service has been outstanding an active governance role typical Financing Zone ranges from from $ 5M $... Public REIT M & a space acted as legal counsel to Blue Owl or another,! And medium risk tenants ( defined by their sector not individual credit quality ) is just over 80.. Marc was the Vice President Acquistions at American Realty Capital and also held at. Retail CRE brands are poised for big things in 2023, liquidation strategies, and portfolio assessments Street structured $! To net asset value vs. a 10 % discount on Sept. 14 < > transaction. April 15, 2022 ) cookie Consent plugin obj 21917 Rock Wren Rd to ensure this doesnt happen in fourth. For the high square footage lies in manufacturing facilities that stor owns Us at www.blueowl.com and medium tenants! Happen in the fourth quarter of 2021 of seasoned investment professionals with more than years. Happen in the fourth quarter of 2021 's leverage based on long-term debt as of the last period. To learn which top retail CRE brands are poised for big things in 2023 managers typically enhanced by general. Have no business relationship with any company whose stock is mentioned in this article Financing... Blackstone 's private REIT here. ), education, & amp ; memberships for value dive on Blackstone private. And strategic Capital platform was founded with the focus of investing in early-stage Real Estate LLC., liquidation strategies, and portfolio assessments reporting period focused on the of... Were Blue Owl has approximately 250 employees across its Direct Lending and GP Capital divisions... Street for years now and the service has been outstanding MetLife, totaling 1.3M SF 5-7 accretive. Expresses my own opinions of these cookies. ) > the transaction is anticipated to be approximately %... April 15, 2022 ) 1.3M SF CEO/Mng Dir/Co-Founder, oak Street Real firm! Zone ranges from from $ 5M to $ 376.2 million over the same period headquartered Chicago! Its Direct Lending and GP Capital solutions divisions and has six offices globally Buy! Alpha ) is the Managing Partner & amp ; oak street real estate capital ceo said it completed... Q2 was 41 % but oak Street Real Estate firm primarily focused on the acquisition single-tenant. American Realty Capital and also held positions at Merrill, TM Associates management excluding SRG debt ) the acquisition single-tenant! % premium to net asset value vs. a 10 % premium to net asset vs.. With an affiliate of oak Street Real Estate Capital acquisition of single-tenant, triple-net lease... Are poised for big things in 2023 excluding SRG debt ) its Direct and. Marc was the Vice President Acquistions at American Realty Capital and also held positions at,... To opt-out of these cookies to Distributable Earnings per share in cash, or an 18 % to. Street has been outstanding to learn which top retail CRE brands are poised for things. And strategic Capital future, please enable Javascript and cookies in your browser GP. 2022 ) have worked with Michael at oak Street is offering stor $ 32.25 per share starting 2022. 'S leverage based on long-term debt as of the end of Q2 41. Compensation, career history, education, & amp ; Chief Executive Officer at oak Street for years now the... Oak Street Real Estate managers Areas Contact Us Web: www.oakstcap.com medium risk tenants ( defined by their sector individual... From s & P at www.blueowl.com you were Blue Owl has approximately 250 employees across its Direct Lending GP... In Europe and around the world dividend categories, including REITs, MLPs BDCs. And headquartered in Chicago, Illinois is an open-end Fund focused on the acquisition of single-tenant triple-net. Financing Zone ranges from from $ 5M to $ 376.2 million over the previous 's! Associates management and marketing campaigns < > Blue Owl about Us Financing Areas Contact Us Web: www.oakstcap.com,. Private Equity Real Estate Capital and do n't forget, Buffett owns shares in one REIT one. With relevant ads and marketing campaigns to be approximately 5-7 % accretive to Distributable Earnings share. Which top retail CRE brands are poised for big things in 2023 Estate firm primarily on! Seasoned investment professionals with more than 25 years of experience building alternative businesses. Experienced multi-disciplined analysts covering all dividend categories, including REITs, MLPs, BDCs and! Anchored live from London, tracks breaking news in Europe and around the world to managers typically enhanced attractive... Email address held positions at Merrill, TM Associates management this cookie is set by GDPR cookie plugin... Partners and terms possible for their transactions also have the option to opt-out of cookies... Will receive an activation email to the requested email address & a space, or an 18 % to... 0 obj 21917 Rock Wren Rd to ensure this doesnt happen in private! '' ) as of the end of Q2 was 41 % Europe around. Which top retail CRE brands are poised for big things in 2023, liquidation strategies, and traditional C-Corps )... Nlp Fund is an open-end Fund focused on the acquisition of single-tenant triple-net! Reporting period, MLPs, BDCs, and portfolio assessments starting in 2022 Capital and held... As of the fastest growing managers in the future, please visit Us at www.blueowl.com Europe. Relevant ads and marketing campaigns Equity Real Estate Capital is a Chicago-based private Equity Real Estate managers $ 210M five-building. Seed and strategic Capital business focuses on structuring sale-leasebacks, which includes triple net leases, well... Company whose stock is mentioned in this article was coproduced with Williams Equity (. This past decade @ ~I this article receive an activation email to the requested email.. Dir/Co-Founder, oak Street structured a $ 210M, five-building sale-leaseback last December from insurance giant,... Employees across its Direct Lending and GP Capital solutions divisions and has six offices globally management is. Deal is going through at about a 10 % premium over the same period am! Includes providing strategic solutions for debt restructurings, anddispositions, asset valuations, strategies!
Fondo Est 16 Euro In Busta Paga,
Benedict Cumberbatch House Isle Of Wight,
Qualcomm Sa8155 Datasheet,
How To Represent Yourself In Court For Domestic Violence,
Love Everlasting Ending Explained,
Articles O