Oak Street Real Estate Capital is a diversified real estate investment firm. Theirestablished relationships with investors helpstheirclients gain the best partners and terms possible for their transactions. Michael Reiter is Managing Director at Oak Street Real Estate Capital LLC. Looking through the lens of price to net asset value, the baseline will reset noticeably lower if the Fed keeps at its current pace of hikes. Marc Zahr, Oak Street Real Estate Capital LLC: Profile and Biography - Bloomberg Markets Live Now Bloomberg TV+ Bloomberg Surveillance Bloomberg Surveillance with Tom Keene,. By providing your email address below, you are providing consent to Blue Owl to send you the requested Investor Email Alert updates. That's 50% more than SRC, nearly 10 times NTST, and double EPRT. Oak Street is committing up to $1 billion. 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. (Podcast), Will Smoking-Monkey JPEGsClog UpBitcoins Blockchain? Cap rates are rising, and while that creates opportunities for lucrative acquisitions, it also means pain for "bond-like" real estate investments. 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. 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? Important factors that may cause actual results or outcomes to differ from those indicated in the forward-looking statements include, among others, the inability to complete and recognize the anticipated benefits of the Oak Street acquisition on the anticipated timeline or at all; costs related to the transaction and the integration of the Oak Street business and operations; Blue Owls ability to manage growth and execute its business plan; potential litigation involving Blue Owl; changes in applicable laws or regulations; the impact of other general economic, business, and competitive factors; the impact of the continuing COVID-19 pandemic on Blue Owls business and additional factors described in the RiskFactors section of our filings with the Securities and Exchange Commission (SEC). Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com. The deal is expected to close in the fourth quarter, subject to customary closing conditions. $32.25 - 43.5 is $31.815. Already have an account? The net lease funds provide corporate tenants with the ability to optimize their balance sheets, delivering immediate liquidity, tax benefits, and operational flexibility. Oak Street Capital is your single source for major real estate consulting and financing. 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. Analytical cookies are used to understand how visitors interact with the website. AddThis sets this cookie to track page visits, sources of traffic and share counts. Oak Street specializes in providing unique and flexible real estate solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. Kirkland & Ellis LLP acted as legal counsel to Blue Owl. Bed Bath & Beyond will sell about half of its real estate to a private equity firm and then lease back the space, a deal expected to earn the company more than $250 million. Understandably, investors hope any premium to be on top of the long-term average cash flow multiple rather than a beaten down valuation. We look forward to working closely together and are excited for what the future holds. When typing in this field, a list of search results will appear and be automatically updated as you type. The firm provides strategic institutional capital to managers enhanced by attractive general partnership economics and an active governance role. I wrote this article myself, and it expresses my own opinions. Oak Street Real Estate Capital, LLC * 3 Principals See who the company's key decision makers are 9 Contacts Reach the right people with access to detailed contact information. Corporate Relations Get the big picture on a company's affiliates and who they do business with. I wrote this article myself, and it expresses my own opinions. Marc received a B. Our typical financing zone ranges from from $5M to $500M. The Net Lease platform is focused on acquiring properties net-leased to investment grade and creditworthy tenants. 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. It's not complicated - performance is strong and consistent. Blue Owls management team is comprised of seasoned investment professionals with more than 25 years of experience building alternative investment businesses. Our typical financing zone ranges from from $5M to $500M. If you have an ad-blocker enabled you may be blocked from proceeding. As per the report, Oak . September 2021 The firm was founded in 2009 and headquartered in Chicago, Illinois. Oak Street Real Estate Capital is a diversified real estate investment firm. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously. We are excited to join the Blue Owl team and add our flexible real estate solutions to the platform.". Theydifferentiate themselvesby theirtop-down approach to the capital stack, and its rolodex of non-traditional, institutional equity sources. T@NY{*N Kirkland & Ellis LLP acted as legal counsel to Blue Owl. Download this eBook and learn how CRE professionals can proactively manage economic challenges by leveraging the power of data. endobj (Remember that we also upgraded STOR to a Strong Buy in 2017 weeks before Berkshire purchased the initial tranche.). Since the deal is all cash, another buyer must improve on the $32.25 to be feasible. About Us Financing Areas Contact Us 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. endstream Under the agreement, ARKO Corp.'s subsidiary GPM would. That means a 10% premium today is worth a lot more than a 10% premium two rate hikes from now. You can sign up for additional alert options at any time. Find new & featured property located in your local city. 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. 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. 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. 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. The platform provides strategic institutional capital to managers typically enhanced by attractive general partnership economics and an active governance role. KBCM also advised the Company on a private rating from an NRSRO ahead of the issuance. In August 2021, Oak Street acquired The Bow in Calgary for $1.2 billion. All Rights Reserved. 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. 2009 2017 2019 2020 2021 Oak Street Real Estate Capital, LLC (Oak Street) was founded PA SERS makes their first investment in Oak Street PA SERS makes their second Oak Street specialises in residential freehold communities throughout Dubai with a strong emphasis on operating to the highest professional and ethical standards. 7 0 obj Bloomberg Daybreak Europe, anchored live from London, tracks breaking news in Europe and around the world. 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's Chicago office is now an additional office for Blue Owl. The annual rent escalators built into its leases are 1.8% and considered sufficient in most environments. endobj 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. AddThis sets this geolocation cookie to help understand the location of users who share the information. This cookie is set by GDPR Cookie Consent plugin. The transaction was completed in three tranches: a $100 Million 10-year tranche, a $225 Million 12-year tranche and a $125 Million 15-year tranche. Environmental, Social and Governance (ESG), HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American, Blue Owl Capital Inc. Fourth Quarter 2022 Results, Blue Owl Capital Inc. to Present at the Bank of America Financial Services Conference 2023. The transaction is expected to close in the fourth quarter of 2021 and is subject to customary closing conditions. All referenced data unless otherwise noted is as of December 31, 2022. These cookies ensure basic functionalities and security features of the website, anonymously. The transaction was previously announced in October of 2021. Use the PitchBook Platform to explore the full profile. Email: bh@oakstcap.com 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 . 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. Blue Owl Capital has over 300 employees across its Direct Lending and GP Capital Solutions divisions and has nine offices globally. Oak Street Capitaladvises on all asset classes including retail, office, multi-family, industrial, healthcare, hospitality, senior living, and student housing. Oak Street, a Chicago-based investment firm, contacted SpartanNash last month to reiterate its interest in buying real estate from the company worth up to $1 billion, shortly after two. STOR's model is primarily a single-tenant triple net lease. From new developments to property acquisitions we provide consulting services as well as debt and equity financing on projects ranging from $5M to $500M+. Oak Street is offering STOR $32.25 per share in cash, or an 18% premium over the previous day's close. Blue Owl has approximately 250 employees across its Direct Lending and GP Capital Solutions divisions and has six offices globally. A. degree from University of Dayton. This idea was discussed in more depth with members of my private investing community, iREIT on Alpha. AED4+X(( 41 + 2.5 is 43.5 cents. Those are the reasons I believe, albeit begrudgingly as a STOR shareholder myself (speaking for WER), that: Keep in mind, this year, all REITs have lost multiple. 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). Your single source for commercial real estate consulting and financing. These cookies track visitors across websites and collect information to provide customized ads. Miami reclaimed the top destination for the first time since August. See our latest interview with FRG's CEO here. In addition, Marc Zahr, Co-Founder and CEO of Oak Street, will join Blue Owl's Board of Directors and Executive Committee. The firm was founded in 2009 and headquartered in Chicago, Illinois. The firm was founded in 2009 and headquartered in Chicago, Illinois. We recently added an all-new Ratings Tracker called iREIT Buy Zone to help members screen for value. (Brad Thomas targets 75% probability of acceptance.). Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Again, this is not really at $32.25 as I pointed out. A Record 25% of Redfin Users are Looking to Move to a New City, More Companies Are Adding Space Than Removing, But Only a Year Out, Unlimited access to GlobeSt and other free ALM publications, Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications, 1 free article* every 30 days across the ALM subscription network, Exclusive discounts on ALM events and publications. 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. That ties O and beats SRC's 28%. 2017-2022 Oak Street Capital, LLC. endobj Fortunately, WER owns equity in both, so it's basically a wash. 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