The firm had approximately$62.4 billionof assets under management as ofJune 30, 2021. WMR has a team of experienced multi-disciplined analysts covering all dividend categories, including REITs, MLPs, BDCs, and traditional C-Corps. The firm focuses on structuring sale-leasebacks, which includes triple net leases, as well as providing seed and strategic capital. STOR itself has a BBB rating with a positive outlook from S&P. Oak Street is aChicago-based firm, founded in 2009 with over 35 employees and with$10.8 billionof assets under management as ofJune 30, 2021. Overnight on Wall Street is morning in Europe. The Net Lease platform is focused on acquiring properties net-leased to investment grade and creditworthy tenants. Then, the agreement calls for STOR to not pay out its Q4 dividend, which would be 41 cents. Our typical financing zone ranges from from $5M to $500M. Oak Street Real Estate Capital is a diversified real estate investment firm. Use the PitchBook Platform to explore the full profile. The cookie is used to store the user consent for the cookies in the category "Performance". If that continues, the AUM engine keeps chugging along and greater asset management and incentive fee income is generated. Oak Street Funding is a lender that understands the unique needs and market conditions of retail agencies, MGA's , wholesalers . Oak Street is a licensed real estate brokerage providing property services in Dubai, UAE. Blue Owl Capital has over 300 employees across its Direct Lending and GP Capital Solutions divisions and has nine offices globally. Oak Street manages both commingled funds and separate accounts on. Bloomberg Daybreak Europe, anchored live from London, tracks breaking news in Europe and around the world. 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. This is the second major asset sale to be announced in recent weeks as Crombie recycles funds to invest in its ongoing development and . Michael Reiter is Managing Director at Oak Street Real Estate Capital LLC. 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 . 2023 Blue Owl Capital Inc. All Rights Reserved. Oaktree Capital Management is a leader among global investment managers specializing in alternative investments. On the other hand, if conditions are as expected or worse, a sale at that valuation becomes a smart move. 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. (Podcast), CEO/Mng Dir/Co-Founder, Oak Street Real Estate Capital LLC. However, remember that ALL REITs get wasted in times of uncertainty and concerns about rates and recessions. Mr. Milek specializes in completingrisk assessments and action plans for distressed financial institutions. As a shareholder, we want to know if we should take the $32.25 while the iron is hot or wait for a better price. 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 . All rights reserved. The firm focuses on structuring sale-leasebacks, which includes triple net leases, as well as providing seed and strategic capital. Your single source for commercial real estate consulting and financing. 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). 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. Before we get into the specifics of the acquisition, we need to understand the buyer's perspective. AED4+X(( The platform seeks to work with strongly aligned management teams with leading investment capabilities, oftentimes led and controlled by women and minorities. 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. Issued by Microsoft's ASP.NET Application, this cookie stores session data during a user's website visit. 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. Exclusive discounts on ALM and GlobeSt events. 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. Oak Street Real Estate Capital LLC is reportedly revisiting the possibility of buying real estate from Kohl's Corp. The transaction is anticipated to be approximately 5-7% accretive to Distributable Earnings per Share starting in 2022. Oak Street Real Estate Capital is a diversified real estate investment firm. 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. 41 + 2.5 is 43.5 cents. 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.. 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). My team and I look forward to partnering with the Blue Owl team to bring Oak Streets differentiated product offerings to a new base of investors and to collaborate to bring additional investment opportunities to investors in Oak Streets funds down the line.. 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. Retailers faced a wide range of challenges in 2022. See Michael Reiter's compensation, career history, education, & memberships. To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. Oak Street Real Estate Capital is a diversified real estate investment firm. Since the deal is all cash, another buyer must improve on the $32.25 to be feasible. Download this whitepaper to learn which top retail CRE brands are poised for big things in 2023. The deal is going through at about a 10% premium to net asset value vs. a 10% discount on Sept. 14. Vice President. Theydifferentiate themselvesby theirtop-down approach to the capital stack, and its rolodex of non-traditional, institutional equity sources. 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. Oak street is private equity real estate firm based in Chicago that focuses on structuring sale-leasebacks. 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. 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. Mr. Hampton has extensive experience structuring and closing construction loans and bridge loans as well. Oak Street Real Estate managed $10.8 billion at the end of June, primarily in the sale-leaseback business. 2017-2022 Oak Street Capital, LLC. Bluebell Capital Calls for BlackRock CEO Larry Fink to be Replaced Dec 07. 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. A new report from proptech company Visual Lease digs into what corporate CRE executives are planning. Ut enim ad minim veniam. 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. The firm focuses on structuring. In addition, upon the achievement of certain performance thresholds, Oak Street equity holders will be entitled to earnouts up to a total of approximately$650 million, payable in cash at future dates or in Blue Owl common units (up to an aggregate of approximately 39 million Blue Owl common units subject to vesting). The firm was founded in 2009 and headquartered in Chicago, Illinois. Los Angeles. Oak Street signed MetLife to 12-year triple net leases on the buildings . With your permission, we also use cookies and similar technologies to provide enhanced functionality, to improve performance, and to analyze site usage. endobj September 2021 Oak Street has agreed to purchase and lease to GPM real estate associated with acquisitions of convenience store brands and fueling stations. Oak Streets active net lease funds primarily focus on single tenant properties, net leased to investment grade and creditworthy tenants, under long duration leases, providing for predictable income. Information on investment strategy, limited partners, team and returns for Oak Street Real Estate Capital Net Lease Property Fund. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. 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. Set by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category . Analytical cookies are used to understand how visitors interact with the website. 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. 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. 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. 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. The firm was founded in 2009 and headquartered in Chicago, Illinois. <> Blue Owl has approximately 250 employees across its Direct Lending and GP Capital Solutions divisions and has six offices globally. 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 valuation has come down markedly in 2022 and we recently upgraded STOR to a Strong Buy - that's our highest conviction. About Oaktree. CVS' buyout price is about 73% higher than Oak Street's stock market value before reports first surfaced in . This website uses cookies to improve your experience while you navigate through the website. 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. Lets walk through the mechanics of the deal and what it means for shareholders of both entities. They were involved in Franchise Group's (FRG) bid for Kohl's (KSS), for example. stream 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. Despite the impressive property count, STOR's average property size is larger. Oak Street specializes in providing flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. 2017-2023 Oak Street Capital, LLC. 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The firm was founded in 2009 and headquartered in Chicago, Illinois. We've written in-depth articles on Blue Owl and will only touch on the most relevant points here. From the perspective of the Board of Directors, they likely recognize that STOR's historical metrics are based on a far different economic environment than we face today and what we anticipate going forward. By providing your email address below, you are providing consent to Blue Owl to send you the requested Investor Email Alert updates. 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. The platform provides strategic institutional capital to managers typically enhanced by attractive general partnership economics and an active governance role. For more information, please visit us at www.blueowl.com. With more than 30 years in real estate he has successfully closed more than $2 billion in transactions in real estate brokerage and financing. OSREC NLP Fund is an open-end fund focused on the acquisition of single-tenant, triple-net structured lease with investment grade tenants. Monitor your investments 24 hours a day, around the clock from around the globe. Blue Owl Capital's management team is comprised of seasoned investment professionals with more than 25 years of experience building alternative investment businesses. 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. 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