Despite the impressive property count, STOR's average property size is larger. To do that, we need to start with what differentiates STOR. <> STOR's credit metrics are all slightly better than the BBB+ (that's three notches into investment grade territory) peer averages. All Rights Reserved. Exclusive discounts on ALM and GlobeSt events. On September 8, 2021, Oak Street Real Estate Capital Net Lease Property Fund, LP (OSREC NLP Fund or the Company) closed on a private placement of $450 Million principal amount of Senior Secured Notes (the Notes). 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. We are excited to join the Blue Owl team and add our flexible real estate solutions to the platform.". If you were Blue Owl or another bidder, wouldn't you want a lower price in this market too? We also use third-party cookies that help us analyze and understand how you use this website. All referenced data unless otherwise noted is as of December 31, 2022. 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. Web: www.oakstcap.com. Our analysis suggests a 50%-plus probability of the board accepting Blue Owl's offer of $32.25 per share ('WER'). 1 0 obj The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors. Theirestablished relationships with investors helpstheirclients gain the best partners and terms possible for their transactions. See our latest interview with FRG's CEO here. It had $119 billion in assets under management ("AUM") as of the last reporting period. Please disable your ad-blocker and refresh. 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). Its peer group includes Realty Income (O), ADC, EPRT, SRC, NTST, NNN, and ADC. <> endobj Theydifferentiate themselvesby theirtop-down approach to the capital stack, and its rolodex of non-traditional, institutional equity sources. 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). With a key focus on client satisfaction and transactional transparency, Oak Street prides itself on a vast network of repeat clients. Analytical cookies are used to understand how visitors interact with the website. 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 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 Capital LLC 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 . 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. 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. This cookie is set by GDPR Cookie Consent plugin. To learn more about the cookies we use, please see our. Blue Owl assumes no obligation to update or revise any such forward-looking statements except as required by law. Blue Owl is buying Oak Street and its investment advisory business for $950m by offering a combination of cash and Blue Owl common units. Blue Owl has approximately 250 employees across its Direct Lending and GP Capital Solutions divisions and has six offices globally. 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. STOR strikes a great balance of a large, established platform that isn't too big. 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. Oak Street was founded in 2009 by Marc Zahr and James Hennessey. This cookie is set by GDPR Cookie Consent plugin. But the deal would be contingent on Oak Street raising rents 1.5% annually, and for its backers to realize a 7.25% initial return. Oak Street operate to the most professional standards. The deal netted the retailer $250 million in proceeds.. 7 0 obj Your article was successfully shared with the contacts you provided. This cookie is set by GDPR Cookie Consent plugin. The platform seeks to work with strongly aligned management teams with leading investment capabilities, oftentimes led and controlled by women and minorities. 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. STOR's weighted average lease term of 13.2 years also is excellent and only bested by EPRT's 13.8. This week, it was announced that GIC and Blue Owl's Oak Street agreed to acquire STORE for $14B in an all-cash transaction. Chris Ahn. Oak Street Capital LLC Oak Street is a licensed real estate brokerage providing property services in Dubai, UAE. 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 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 . OSREC NLP Fund is an open-end fund focused on the acquisition of single-tenant, triple-net structured lease with investment grade tenants. If I had to guess, he doesn't mind the 5.9% and 6.1% annual growth in AFFO and dividends, respectively, since 2016. With your permission, we also use cookies and similar technologies to provide enhanced functionality, to improve performance, and to analyze site usage. Oaktree Capital Management is a leader among global investment managers specializing in alternative investments. Already the Second-Largest Buyer During Pandemic, CEO Says Chicago Firm Has $10 Billion Pipeline Oak Street Real Estate Capital owns this 1.3 million square feet industrial property at 50 Rausch . At Blue Owl, we promise to treat your data with respect and will not share your information with any third party. STOR itself has a BBB rating with a positive outlook from S&P. For more information, please visit us atwww.blueowl.com. 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. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. We recently added an all-new Ratings Tracker called iREIT Buy Zone to help members screen for value. Marc received a B. The Net Lease platform is focused on acquiring properties net-leased to investment grade and creditworthy tenants. It works only in coordination with the primary cookie. For more information, please visit us at www.blueowl.com. The current commercial real estate (CRE) landscape faces disruption from economic and geopolitical fallout. 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. 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 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. Oak Street Real Estate Capital is a diversified real estate investment firm. The WMR brands include: (1) iREIT on Alpha (Seeking Alpha), and (2) The Dividend Kings (Seeking Alpha), and (3) Wide Moat Research. The Seeding and Strategic Capital platform was founded with the focus of investing in early-stage real estate managers. Well, it might, if things stabilize and investment AFFO spreads revert. This idea was discussed in more depth with members of my private investing community, iREIT on Alpha. 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 . For more information, please visit us at www.blueowl.com. <>/XObject<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 720 540] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Oak Street specializes in providing flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. Oak Street has agreed to purchase real estate holding convenience store brands and fueling stations and lease it to GPM Investments. What does this mean for CRE professionals? Our typical financing zone ranges from from $5M to $500M. Investor ContactAnn DaiHead of Investor Relationsowlir@blueowl.com, Media ContactProsek PartnersDavid Wells/Nick TheccanatPro-blueowl@prosek.com. And it said in a statement that it would use the proceeds from. This cookie is set by GDPR Cookie Consent plugin. 2023 Blue Owl Capital Inc. All Rights Reserved. Yet, these 10 retail brands prove there are many untapped opportunities in the year ahead. The firm was founded in 2009 and headquartered in Chicago, Illinois. Assuming 6%+, which is below their reported AFFO growth, that's 2.5 cents a share, or equal to the 2021 increase. 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. Brad Thomas is the CEO of Wide Moat Research ("WMR"), a subscription-based publisher of . Although human nature is to irrationally use the rearview mirror to drive our investment portfolios (e.g. The firm was founded in 2009 and headquartered in Chicago, Illinois. xT]o0}pIMk;*RvPT6:xnyqtnZ\`|y Then, the agreement calls for STOR to not pay out its Q4 dividend, which would be 41 cents. Oak Street Real Estate Capital is a diversified real estate investment firm. Spicewood, TX 78669, Tel: +1 (312) 731-3391 The question is whether STOR's multiple will rise after rate increases. 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. You can unsubscribe to any of the investor alerts you are subscribed to by visiting the unsubscribe section below. from 8 AM - 9 PM ET. The firm was founded in 2009 and headquartered in Chicago, Illinois. 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 . Marc Zahr, Oak Street Real Estate Capital LLC: Profile and Biography - Bloomberg Markets Live Now Bloomberg TV+ Bloomberg Surveillance Bloomberg Surveillance with Tom Keene,. 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. 3 0 obj Miami reclaimed the top destination for the first time since August. 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. The stock price certainly hasn't. 21917 Rock Wren Rd 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. 99.5% occupancy as of the end of Q2 is also difficult to beat. *May exclude premium content A new report from proptech company Visual Lease digs into what corporate CRE executives are planning. April 21, 2021. 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. With more than 30 years in real estate he has successfully closed more than $2 billion in transactions in real estate brokerage and financing. In September 2022, Oak Street and GIC agreed to acquire Store Capital for $14 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. 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. STOR's historical financials encompass a period of very low interest rates - up until now. This article was coproduced with Williams Equity Research ('WER'). 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. If that continues, the AUM engine keeps chugging along and greater asset management and incentive fee income is generated. 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 . 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. Oak Street Real Estate managed $10.8 billion at the end of June, primarily in the sale-leaseback business. While the headline price is $32.25, the actual consideration appears less. Retailers faced a wide range of challenges in 2022. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. Oak Street specializes in providing unique and flexible real estate solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. 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. 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. Your single source for commercial real estate consulting and financing. Oak Street specializes in providing flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. 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. 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.. 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. Oak Street specialises in residential freehold communities throughout Dubai with a strong emphasis on operating to the highest professional and ethical standards. It does not store any personal data. 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. 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