It is delivered on an as is basis without warranty or liability. 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. Oak Street Capital LLC Oak Street Real Estate Capital is a diversified real estate investment firm. Oak Street specializes in providing unique and flexible real estate solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. Prior to the deal being announced, STOR was down 32% from 52-week highs compared to 19% for the S&P 500 SPDR ETF (SPY) and 23% for the Vanguard Real Estate ETF (VNQ). endobj The platform seeks to work with strongly aligned management teams with leading investment capabilities, oftentimes led and controlled by women and minorities. About Us Financing Areas Contact Us This just in. The firm focuses on structuring. 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 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. Oak Street is offering STOR $32.25 per share in cash, or an 18% premium over the previous day's close. STOR's credit metrics are all slightly better than the BBB+ (that's three notches into investment grade territory) peer averages. Understandably, investors hope any premium to be on top of the long-term average cash flow multiple rather than a beaten down valuation. Oak Street Real Estate managed $10.8 billion at the end of June, primarily in the sale-leaseback business. 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 . Kirkland & Ellis LLP acted as legal counsel to Blue Owl. 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. Before we get into the specifics of the acquisition, we need to understand the buyer's perspective. 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 platform and its Seeding and Strategic Capital platform. Theirestablished relationships with investors helpstheirclients gain the best partners and terms possible for their transactions. That last one is relevant as STOR has 30 days to shop the deal to another buyer. In addition, hehas extensive experience developing equity and mezzanine facilities across multiple product lines. This article was coproduced with Williams Equity Research ('WER'). "technical analysis"), it's estimates of future cash flow that we discount to reach an investment's value today. Bloomberg Daybreak Europe, anchored live from London, tracks breaking news in Europe and 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+. T@NY{*N 2 0 obj The Seeding and Strategic Capital business focuses on investing in early-stage real estate managers across various industry sectors. Lets walk through the mechanics of the deal and what it means for shareholders of both entities. Mr. Hampton has extensive experience structuring and closing construction loans and bridge loans as well. Oak. 9 See similar companies for insight and prospecting. 3 0 obj 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. Assuming 6%+, which is below their reported AFFO growth, that's 2.5 cents a share, or equal to the 2021 increase. Mr. Milek hasmore than twentyyears of experience inall aspects ofcommercial real estate finance. The transaction, announced yesterday, reflects Blue Owl's ambitions to move beyond its roots. 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. Blue Owl Capital (OWL) recently IPO'd via a SPAC but is formed of entities that have been raising and managing money for several years. 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. Oak Street Real Estate Capital is a diversified real estate investment firm. 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The cookie is used to store the user consent for the cookies in the category "Other. 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. Miami reclaimed the top destination for the first time since August. Oak Street specializes in providing unique and flexible real estate solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. Prominent historians and conservation experts explain the architectural relevance of buildings ranging from houses of worship to former colonial outposts and tenements. Oak Street structured a $210M , five-building sale-leaseback last December from insurance giant MetLife, totaling 1.3M SF. 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. Townhouse | Five Palm | 5 Star Facilities, Custom Built | N Frond | Skyline View | Must View, Exclusive | Upgraded | Fully Furnished | VOT. You can unsubscribe to any of the investor alerts you are subscribed to by visiting the unsubscribe section below. 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. Exclusive discounts on ALM and GlobeSt events. The platform seeks to work with strongly aligned management teams with leading investment capabilities, oftentimes led and controlled by women and minorities. Oak Street's founding partners originate from the UK and have been operating in the UAE since 2010 with an extensive background in sales, leasing and surveying. April 21, 2021. *May exclude premium content The firm was founded in 2009 and headquartered in Chicago, Illinois. I have no business relationship with any company whose stock is mentioned in this article. 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. You also have the option to opt-out of these cookies. Our Mission Its peer group includes Realty Income (O), ADC, EPRT, SRC, NTST, NNN, and ADC. 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DFIN was Jason Clucas on LinkedIn: GIC and Oak Street Complete $15 Billion Acquisition of STORE Capital Office 1005, 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 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 . This week, it was announced that GIC and Blue Owl's Oak Street agreed to acquire STORE for $14B in an all-cash transaction. With a key focus on client satisfaction and transactional transparency, Oak Street prides itself on a vast network of repeat clients. Oak Street Real Estate Capital is a diversified real estate investment firm. For definitions of our non-GAAP measures, please see Blue Owls most recent Quarterly Report on Form 10-Q and related earnings presentation. 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. Well, it might, if things stabilize and investment AFFO spreads revert. Kirkland & Ellis LLP acted as legal counsel to Blue Owl. 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. 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, LLC * 3 Principals See who the company's key decision makers are 9 Contacts Reach the right people with access to detailed contact information. "Illini Angels" is recruiting . Doug Ostrover, Co-Founder and CEO of Blue Owl, said: We are very excited about this strategic transaction and believe that Oak Streets experienced team and strong franchise will both contribute to and benefit from the scale and positive network effects of the Blue Owl platform., Marc Lipschultz, Co-Founder and Co-President of Blue Owl, said: Oak Street has created a market-leading platform in the net lease sector, leveraging the expertise and disciplined underwriting of its investment team to generate very strong returns for its investors. Oak Street was founded in 2009 by Marc Zahr and James Hennessey. The annual rent escalators built into its leases are 1.8% and considered sufficient in most environments. 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 . And it said in a statement that it would use the proceeds from. The platform provides strategic institutional capital to managers typically enhanced by attractive general partnership economics and an active governance role. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. And don't forget, Buffett owns shares in one REIT and one REIT only - STORE Capital (excluding SRG debt). The transaction is expected to close in the fourth quarter of 2021. Vice President. If I had to guess, he doesn't mind the 5.9% and 6.1% annual growth in AFFO and dividends, respectively, since 2016. The firm focuses on structuring sale-leasebacks, which includes triple net leases, as well as providing seed and strategic capital. 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 exposure to high and medium risk tenants (defined by their sector not individual credit quality) is just over 80%. Los Angeles. Set by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category . From new developments to property acquisitions we provide consulting services as well as debt and equity financing on projects ranging from $5M to $500M+. 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 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. 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. The Net Lease platform is focused on acquiring properties net-leased to investment grade and creditworthy tenants. Oak Street Real Estate Capital is a diversified real estate investment firm. 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. Oak Street operate to the most professional standards. . Berkshire Global Advisors served as financial advisor and Willkie Farr & Gallagher LLP and Gibson, Dunn & Crutcher LLP acted as legal counsel to Oak Street. The cookie is used to store the user consent for the cookies in the category "Analytics". The transaction was previously announced in October of 2021. 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.. 21917 Rock Wren Rd The deal is going through at about a 10% premium to net asset value vs. a 10% discount on Sept. 14. Los Angeles. Oak Street specialises in residential freehold communities throughout Dubai with a strong emphasis on operating to the highest professional and ethical standards. Vice President. Download this eBook and learn how CRE professionals can proactively manage economic challenges by leveraging the power of data. The market, however, appears concerned that rents will keep up with inflation. 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. STOR's leverage based on long-term debt as of the end of Q2 was 41%. Web: www.oakstcap.com. Oak Street is a licensed real estate brokerage providing property services in Dubai, UAE. AddThis sets this cookie to track page visits, sources of traffic and share counts. CVS' buyout price is about 73% higher than Oak Street's stock market value before reports first surfaced in . Blue Owl assumes no obligation to update or revise any such forward-looking statements except as required by law. 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 firm focuses on two primary strategies: structuring sale-leasebacks, which includes triple net leases, as well as providing seed and strategic capital. Oak Street offers a unique. We know the company well and have written about it many times over the years. Cap rates are rising, and while that creates opportunities for lucrative acquisitions, it also means pain for "bond-like" real estate investments. CEO up until two quarters ago (no one at Wide Moat Research has any affiliation with STORE Capital outside of owning common equity). Additionally, Mr. Milek has created risk rating systems,including the real time asset modeling & valuation models andhas extensive experience in developingloan policies and procedures. Issued by Microsoft's ASP.NET Application, this cookie stores session data during a user's website visit. 7 0 obj It's that real estate division - Oak Street Real Estate Capital - that's officially bidding on STOR. 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. The #1 Service For Safe and Reliable REIT Income. 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. 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. Oak Street client service is spectacular. Blue Owl has approximately 250 employees across its Direct Lending and GP Capital Solutions divisions and has six offices globally. 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. Having successfully launched and managedmulti-regionalcommercial real estate divisionsfor twonational banks and developed a nationwide network of real estate developers/owners, investors, lenders, and regulators, Mr. Milek has structured more than $5 billionin senior debt financing. To learn more about the cookies we use, please see our. Markets never sleep, and neither does Bloomberg News. x\Te. 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 question is whether STOR's multiple will rise after rate increases. We also use third-party cookies that help us analyze and understand how you use this website. Spicewood, TX 78669, Tel: +1 (312) 731-3391 The firm provides strategic institutional capital to managers enhanced by attractive general partnership economics and an active governance role. 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. Escalators built into its leases are 1.8 % and considered sufficient in most environments, five-building sale-leaseback last December insurance... And James Hennessey metrics are all slightly better than the BBB+ ( that 's three notches into grade! Content the firm was founded in 2009 and headquartered in Chicago, Illinois escalators built into its leases are %! 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