Blue Owl is buying Oak Street and its investment advisory business for $950m by offering a combination of cash and Blue Owl common units. 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. Oak Street's Chicago office is now an additional office for Blue Owl. Prominent historians and conservation experts explain the architectural relevance of buildings ranging from houses of worship to former colonial outposts and tenements. 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). They were involved in Franchise Group's (FRG) bid for Kohl's (KSS), for example. The firm had approximately $70.5 billion of assets under management as of September 30, 2021. 2017-2022 Oak Street Capital, LLC. (Again, the true price is less than $32.25 adjusting for suspended dividends.). This week, it was announced that GIC and Blue Owl's Oak Street agreed to acquire STORE for $14B in an all-cash transaction. Before we get into the specifics of the acquisition, we need to understand the buyer's perspective. 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. The stock price certainly hasn't. *May exclude premium content 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). Oak Street Real Estate managed $10.8 billion at the end of June, primarily in the sale-leaseback business. The reason for the high square footage lies in manufacturing facilities that STOR owns. To learn more about the cookies we use, please see our. The firm focuses on structuring. endobj NEW YORK and CHICAGO, Dec. 30, 2021 /PRNewswire/ -- Blue Owl Capital Inc. ("Blue Owl") (NYSE: OWL) announced today the completion of its acquisition of Oak Street Real Estate Capital, LLC ("Oak Street") and its investment advisory business. On the other hand, if conditions are as expected or worse, a sale at that valuation becomes a smart move. "Illini Angels" is recruiting . First, it has a lot of properties - just over 3,000 as of the end of the last reporting period. The annual rent escalators built into its leases are 1.8% and considered sufficient in most environments. Since the deal is all cash, another buyer must improve on the $32.25 to be feasible. Please. The firm was founded in 2009 and headquartered in Chicago, Illinois. Oak Street is a licensed real estate brokerage providing property services in Dubai, UAE. 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. What does this mean for CRE professionals? 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. All Rights Reserved. stream Oak Street Real Estate Capital is a diversified real estate investment firm. NEW YORK and CHICAGO, Dec. 30, 2021 /PRNewswire/ -- Blue Owl Capital Inc. ("Blue Owl") (NYSE: OWL) announced today the completion of its acquisition of Oak Street Real Estate Capital, LLC ("Oak Street") and its investment advisory business. 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. First, investors had anticipated a dividend increase for Q3. The firm had approximately$62.4 billionof assets under management as ofJune 30, 2021. That ties O and beats SRC's 28%. 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. 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 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 firm was founded in 2009 and headquartered inChicago, Illinois. Sept 15 (Reuters) - Singapore's GIC and private equity firm Oak Street, a division of Blue Owl Capital Inc (OWL.N), will buy commercial real estate investment trust Store Capital Corp (STOR.N) in . By clicking Accept, you consent to our use of cookies. With a key focus on client satisfaction and transactional transparency, Oak Street prides itself on a vast network of repeat clients. 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 STOR's historical financials encompass a period of very low interest rates - up until now. In September 2022, Oak Street and GIC agreed to acquire Store Capital for $14 Billion. For more information, please visit us atwww.blueowl.com. All Rights Reserved. Start Your Free Trial Disclosure: WER is long STOR and OWL and short STOR put options. The firm focuses on structuring sale-leasebacks, which includes triple net leases, as well as providing seed and strategic capital. <>/Metadata 3336 0 R/ViewerPreferences 3337 0 R>> For more information, please visit us at www.blueowl.com. The Seeding and Strategic Capital platform was founded with the focus of investing in early-stage real estate managers. Email: bh@oakstcap.com Oak Street is committing up to $1 billion. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. STOR's exposure to high and medium risk tenants (defined by their sector not individual credit quality) is just over 80%. Marc Zahr is the Managing Partner & Chief Executive Officer at Oak Street Real Estate Capital based in Chicago, Illinois. Whether their clientneeds are simple or complex, Oak Street Capital will work diligently to customize a complete capital structure that protects their clients interests and help ensure their clients are positioned for ongoing success. Email: bh@oakstcap.com 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? Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Oak Street was founded in 2009 by Marc Zahr and James Hennessey. 14 times to 15) for a share price around $35 - but no higher. It does not store any personal data. %PDF-1.7 Oak Street Real Estate Capital has been one of the fastest growing managers in the private real estate space this past decade. Oak. This press release includes certain non-GAAP financial measures, including Distributable Earnings per Share, that are not prepared in accordance with accounting principles generally accepted inthe United States(GAAP) and that may be different from non-GAAP financial measures used by other companies. This article was coproduced with Williams Equity Research ('WER'). Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com. Marketing and Client Relations. Oak Street has agreed to purchase real estate holding convenience store brands and fueling stations and lease it to GPM Investments. Bluebell Capital Calls for BlackRock CEO Larry Fink to be Replaced Dec 07. Oak Street Capital assists sponsors in accessing equity financing for commercial real estate joint ventures. Oak Street Real Estate Capital has agreed to be bought by Blue Owl Capital for up to $1.6bn (1.4bn). Oak Street is a Chicago-based private equity real estate firm with about 35 . This cookie is set by GDPR Cookie Consent plugin. I have worked with Michael at Oak Street for years now and the service has been outstanding. WMR has a team of experienced multi-disciplined analysts covering all dividend categories, including REITs, MLPs, BDCs, and traditional C-Corps. 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. 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. Oak Street Capital LLC The firm focuses on structuring sale-leasebacks, which includes triple net leases, as well as providing seed and strategic capital. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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. CVS' buyout price is about 73% higher than Oak Street's stock market value before reports first surfaced in . Blue Owl Capital's management team is comprised of seasoned investment professionals with more than 25 years of experience building alternative investment businesses. Spicewood, TX 78669, Tel: +1 (312) 731-3391 From new developments to property acquisitions we provide consulting services as well as debt and equity financing on projects ranging from $5M to $500M+. 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. The net lease funds provide corporate tenants with the ability to optimize their balance sheets, delivering immediate liquidity, tax benefits, and operational flexibility. "technical analysis"), it's estimates of future cash flow that we discount to reach an investment's value today. URBANA The University of Illinois' venture-capital arm is building a network of alumni investors to help grow campus-borne businesses from the ground floor. Understandably, investors hope any premium to be on top of the long-term average cash flow multiple rather than a beaten down valuation. Additionally, Mr. Milek has created risk rating systems,including the real time asset modeling & valuation models andhas extensive experience in developingloan policies and procedures. $32.25 - 43.5 is $31.815. The cookie is used to store the user consent for the cookies in the category "Analytics". Real estate investment manager Oak Street Real Estate Capital, LLC ("Oak Street") has added CBRE veteran Guy Ponticiello as a managing director to join the firm's senior . This cookie is set by GDPR Cookie Consent plugin. It is delivered on an as is basis without warranty or liability. Monitor your investments 24 hours a day, around the clock from around the globe. To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. These cookies will be stored in your browser only with your consent. 2017-2023 Oak Street Capital, LLC. 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. . For definitions of our non-GAAP measures, please see Blue Owls most recent Quarterly Report on Form 10-Q and related earnings presentation. If you have an ad-blocker enabled you may be blocked from proceeding. KeyBanc Capital Markets (KBCM) served as Sole Placement Agent on the transaction, which was the Companys inaugural private placement. The firm is a market leader in providing unique and flexible real estate solutions to a variety of organizations including corporations, healthcare systems, universities, and government entities. T@NY{*N Miami reclaimed the top destination for the first time since August. Oak Street Real Estate Capital is a diversified real estate investment firm. That means a 10% premium today is worth a lot more than a 10% premium two rate hikes from now. Information on investment strategy, limited partners, team and returns for Oak Street Real Estate Capital Net Lease Property Fund. Los Angeles. 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. <>/XObject<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 720 540] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. These cookies ensure basic functionalities and security features of the website, anonymously. Carmel, IN. Oak Street Real Estate Capital is a diversified real estate investment firm. Oak Street manages both commingled funds and separate accounts on. If you were Blue Owl or another bidder, wouldn't you want a lower price in this market too? While the headline price is $32.25, the actual consideration appears less. O9#8lq>~vh`\V$Lm~aEqePVJs&@:jieLdz*be+0tr{z6o@J:TMLUUk3)]ZIGv^0 oa8_^L'H-?h,:T fiJ RXBj m|H In addition, Marc Zahr, Co-Founder and CEO of Oak Street, will join Blue Owl's Board of Directors and Executive Committee. MSCIs RCA CPPI National All-Property index lost 2.7% since December. Oak Street specializes in providing unique and flexible real estate solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. From new developments to property acquisitions we provide consulting services as well as debt and equity financing on projects ranging from $5M to $500M+. In addition, hehas extensive experience developing equity and mezzanine facilities across multiple product lines. Oaktree Capital Management is a leader among global investment managers specializing in alternative investments. I am not receiving compensation for it (other than from Seeking Alpha). <> Our typical financing zone ranges from from $5M to $500M. Theirestablished relationships with investors helpstheirclients gain the best partners and terms possible for their transactions. Office 1005, The platform seeks to work with strongly aligned management teams with leading investment capabilities, oftentimes led and controlled by women and minorities. ", Marc Zahr, Co-Founder and CEO of Oak Street, said: "Through its direct lending and GP stakes solutions, Blue Owl has built a one-stop shop for alternative asset managers in solving capital needs. Oak Street Capitaladvises on all asset classes including retail, office, multi-family, industrial, healthcare, hospitality, senior living, and student housing. See our latest interview with FRG's CEO here. Berkshire Global Advisors served as financial advisor andWillkie Farr& Gallagher LLP acted as legal counsel to Oak Street. Cap rates are rising, and while that creates opportunities for lucrative acquisitions, it also means pain for "bond-like" real estate investments. Oak Street Real Estate Capital is a diversified real estate investment firm. vJM;P|AS!U|}6&fMOw89_KP4iOvDp6mbf }@TcGD6 M>Qadx"D(r?HsNL rH -b%%(%9l6$gC)]!mY74F|LQ ZF?;%0@~I Set by addthis.com to determine the usage of addthis.com service. Blue Owl Capital has over 300 employees across its Direct Lending and GP Capital Solutions divisions and has nine offices globally. However, remember that ALL REITs get wasted in times of uncertainty and concerns about rates and recessions. 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