That's below the 52-week high of $36.13 and well below its pre-pandemic stock price that exceeded $40 per share multiple times. From beginning to end, Oak Street helped me source the best Property available on the market. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". 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. All Rights Reserved. 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. Oaktree Capital Management is a leader among global investment managers specializing in alternative investments. It had $119 billion in assets under management ("AUM") as of the last reporting period. STOR itself has a BBB rating with a positive outlook from S&P. 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. We know the company well and have written about it many times over the years. <>
If you were Blue Owl or another bidder, wouldn't you want a lower price in this market too? 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. A. degree from University of Dayton. The question is whether STOR's multiple will rise after rate increases. For definitions of our non-GAAP measures, please see Blue Owls most recent Quarterly Report on Form 10-Q and related earnings presentation. Oak Street Real Estate Capital is a diversified real estate investment firm. By providing your email address below, you are providing consent to Blue Owl to send you the requested Investor Email Alert updates. I (Williams Equity Research) analyzed several of Owl Rock's private offerings on behalf of large institutional investors and know the management team well. Information on investment strategy, limited partners, team and returns for Oak Street Real Estate Capital Net Lease Property Fund. This article was coproduced with Williams Equity Research ('WER'). Oak Street specializes in providing unique and flexible real estate solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. (Note: BRK-A has reduced its stake in STOR as of Q2-22.). 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 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. 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. Oak Street specializes in providing flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. Alternative asset manager Blue Owl Capital Inc. has agreed to acquire Oak Street Real Estate Capital LLC, of Chicago, and its investment advisory business for $950 million. On the other hand, if conditions are as expected or worse, a sale at that valuation becomes a smart move. 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 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 Net Lease platform is focused on acquiring properties net-leased to investment grade and creditworthy tenants. The Seeding and Strategic Capital platform was founded with the focus of investing in early-stage real estate managers. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. Barsha Heights. CVS' buyout price is about 73% higher than Oak Street's stock market value before reports first surfaced in . Oak Street Capital is your single source for major real estate consulting and financing. endobj
Oak Street is committing up to $1 billion. Email: bh@oakstcap.com The cookie is used to store the user consent for the cookies in the category "Other. Real Assets. The firm was founded in 2009 and headquartered in Chicago, Illinois. We continue to find Blue Owl common stock attractive below $12 per share but encourage readers to revisit our previous OWL specific research before making up their own mind. Oak street is private equity real estate firm based in Chicago that focuses on structuring sale-leasebacks. The firm had approximately$62.4 billionof assets under management as ofJune 30, 2021. About Oak Street. This just in. Blue Owl Capital Completes Acquisition of Oak Street Real Estate Capital, https://www.prnewswire.com/news-releases/blue-owl-capital-completes-acquisition-of-oak-street-real-estate-capital-301451517.html. Spicewood, TX 78669, Tel: +1 (312) 731-3391 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. Vice President. At Blue Owl, we promise to treat your data with respect and will not share your information with any third party. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. O's is 13,000 sq ft vs. 26,000 for SRC and 35,000 for STOR. 2017-2023 Oak Street Capital, LLC. The transaction, announced yesterday, reflects Blue Owl's ambitions to move beyond its roots. Well, it might, if things stabilize and investment AFFO spreads revert. Previously, Marc was the Vice President Acquistions at American Realty Capital and also held positions at Merrill, TM Associates Management. The deal netted the retailer $250 million in proceeds.. But they eventually overcorrect. 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. <>
We are excited to join the Blue Owl team and add our flexible real estate solutions to the platform.". t{^n.5.4|{yZ|YOOwu yM^Fg( Overnight on Wall Street is morning in Europe. 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. The platform seeks to work with strongly aligned management teams with leading investment capabilities, oftentimes led and controlled by women and minorities. 3 0 obj
These cookies track visitors across websites and collect information to provide customized ads. 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. We are excited to join the Blue Owl team and add our flexible real estate solutions to the platform.". from 8 AM - 9 PM ET. Understandably, investors hope any premium to be on top of the long-term average cash flow multiple rather than a beaten down valuation. Ut enim ad minim veniam. *May exclude premium content 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. Berkshire Global Advisors served as financial advisor and Willkie Farr & Gallagher LLP and Gibson, Dunn & Crutcher LLP acted as legal counsel to Oak Street. Is this happening to you frequently? 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. Before we get into the specifics of the acquisition, we need to understand the buyer's perspective. Additionally, Mr. Milek has created risk rating systems,including the real time asset modeling & valuation models andhas extensive experience in developingloan policies and procedures. Then, the agreement calls for STOR to not pay out its Q4 dividend, which would be 41 cents. 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. Blue Owl Capital has over 300 employees across its Direct Lending and GP Capital Solutions divisions and has nine offices globally. The #1 Service For Safe and Reliable REIT Income. Oak Street Funding. "Illini Angels" is recruiting . After submitting your request, you will receive an activation email to the requested email address. Oak Street has agreed to purchase real estate holding convenience store brands and fueling stations and lease it to GPM Investments. 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. Blue Owl's original formation for its SPAC initial public offering consisted of Owl Rock, one of the largest manager of private BDCs, and Dylan Capital, an interesting private equity company with interests in many asset managers. This cookie is set by GDPR Cookie Consent plugin. That's a healthy improvement over the pre-deal's 11.8 times, but keen investors know what STOR's 5-year AFFO multiple is around 15.5 times (it's a little over 16 times since inception). stream
However, remember that ALL REITs get wasted in times of uncertainty and concerns about rates and recessions. 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. Assuming 6%+, which is below their reported AFFO growth, that's 2.5 cents a share, or equal to the 2021 increase. 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 Streets founding partners originate from the UK and have been operating in the UAE since 2010 with an extensive background in sales, leasing and surveying. The platform seeks to work with strongly aligned management teams with leading investment capabilities, oftentimes led and controlled by women and minorities. 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. Please disable your ad-blocker and refresh. The platform provides strategic institutional capital to managers typically enhanced by attractive general partnership economics and an active governance role. 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. Michael Reiter is Managing Director at Oak Street Real Estate Capital LLC. It's that real estate division - Oak Street Real Estate Capital - that's officially bidding on STOR. Lets walk through the mechanics of the deal and what it means for shareholders of both entities. 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. We use essential cookies to allow our site to function. Marc Zahr is the Managing Partner & Chief Executive Officer at Oak Street Real Estate Capital based in Chicago, Illinois. In September 2022, Oak Street and GIC agreed to acquire Store Capital for $14 Billion. Web: www.oakstcap.com. Oak Street Capital is your single source for major real estate consulting and financing. Announces $12.9 Billion Final Close for Dyal Capital Partners V, Owl Rock leads $401 million financing for Arctic Wolf. BlackRock: The ESG Issue Is . Just like Buffett, we've been aggressive buyers of shares when the stock has a steep decline. 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. 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