The transaction is expected to close in the fourth quarter of 2021 and is subject to customary closing conditions. STOR's leverage based on long-term debt as of the end of Q2 was 41%. Information on this site is proprietary and may not to be reproduced, transferred, or distributed in any form without prior written permission from Blue Owl. 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). Understandably, investors hope any premium to be on top of the long-term average cash flow multiple rather than a beaten down valuation. 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. Oak Street Real Estate Capital has agreed to be bought by Blue Owl Capital for up to $1.6bn (1.4bn). 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). In addition,Marc Zahrwill join Blue Owls Board of Directors and Executive Committee. STOR itself has a BBB rating with a positive outlook from S&P. Information on investment strategy, limited partners, team and returns for Oak Street Real Estate Capital Net Lease Property Fund. 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. 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. We look forward to working closely together and are excited for what the future holds. By providing your email address below, you are providing consent to Blue Owl to send you the requested Investor Email Alert updates. Spicewood, TX 78669, Tel: +1 (312) 731-3391 <>/Metadata 3336 0 R/ViewerPreferences 3337 0 R>>
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Blue Owl assumes no obligation to update or revise any such forward-looking statements except as required by law. Oak Street client service is spectacular. If all those variables end up less severe than the current bearish outlook suggests, selling STOR at 14 times (less as adjusted) 2022 AFFO won't look like a stellar deal. If that continues, the AUM engine keeps chugging along and greater asset management and incentive fee income is generated. Real Assets. 3 0 obj
OSREC NLP Fund is an open-end fund focused on the acquisition of single-tenant, triple-net structured lease with investment grade tenants. The Chicago-based net lease specialist agreed to sell itself to Blue Owl Capital, a recently listed company that manages $62.4 billion of direct loans and capital solutions products . Blue Owl Capital's management team is comprised of seasoned investment professionals with more than 25 years of experience building alternative investment businesses. 1 0 obj
It's that real estate division - Oak Street Real Estate Capital - that's officially bidding on STOR. The question is whether STOR's multiple will rise after rate increases. Past performance is not a guide to future results. Oak Street Capital LLC I am not receiving compensation for it (other than from Seeking Alpha). 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. 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. Already have an account? A. degree from University of Dayton. 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. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Brad Thomas is the CEO of Wide Moat Research ("WMR"), a subscription-based publisher of financial information, serving over 10,000 investors around the world. Oak Street specializes in providing flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. 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. Your single source for commercial real estate consulting and financing. Its top 10 tenant concentration is a mere 17.7%, which is best and class and well under O's 28.1%, for example. Mr. Hampton has extensive experience structuring and closing construction loans and bridge loans as well. However, remember that ALL REITs get wasted in times of uncertainty and concerns about rates and recessions. 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 . 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 Capitaladvises on all asset classes including retail, office, multi-family, industrial, healthcare, hospitality, senior living, and student housing. Markets never sleep, and neither does Bloomberg News. With your permission, we also use cookies and similar technologies to provide enhanced functionality, to improve performance, and to analyze site usage. This article was coproduced with Williams Equity Research ('WER'). 2017-2023 Oak Street Capital, LLC. Blue Owl Capital Inc. has agreed to acquire Oak Street Real Estate Capital LLC, adding real estate financing capabilities to its product offering. 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. All Rights Reserved. Oak Street Real Estate Capital has been one of the fastest growing managers in the private real estate space this past decade. 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. Lets walk through the mechanics of the deal and what it means for shareholders of both entities. Oak Street Real Estate Capital is a diversified real estate investment firm. 21917 Rock Wren Rd I have worked with Michael at Oak Street for years now and the service has been outstanding. ExodusPoint Capital Management LP cut its holdings in shares of Oak Street Health, Inc. (NYSE:OSH - Get Rating) by 24.6% during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission.The fund owned 23,944 shares of the company's stock after selling 7,820 shares during the period. Grosvenor Business Tower,
Oak Street's Chicago office is now an additional office for Blue Owl. Find Michael's email address, mobile number, work history, and more. Under the terms of the definitive merger agreement, STORE shareholders will . 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 deal netted the retailer $250 million in proceeds.. Our typical financing zone ranges from from $5M to $500M. Oak Street has been very active in the public REIT M&A space. Oak Street Capital is a Real Estate Investment and Financing company focused on private equity investment, mezzanine financing, land acquisition and improvement loans, construction loans, bridge loans, debt financing, lending consultation and real estate brokerage. 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. O's way bigger at nearly 11,500 properties, but that's a whale very few acquirers can realistically take down. This cookie is set by GDPR Cookie Consent plugin. About Oaktree. Oak Street signed MetLife to 12-year triple net leases on the buildings . Oak Street structured a $210M , five-building sale-leaseback last December from insurance giant MetLife, totaling 1.3M SF. Blue Owls management team is comprised of seasoned investment professionals with more than 25 years of experience building alternative investment businesses. The firm was founded in 2009 and headquartered in Chicago, Illinois. 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. 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. We know the company well and have written about it many times over the years. ", 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. BlackRock: The ESG Issue Is . %
For more information, please visit us at www.blueowl.com. The firm was founded in 2009 and headquartered in Chicago, Illinois. The firm focuses on structuring sale-leasebacks, which includes triple net leases, as well as providing seed and strategic capital. 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. I/we have a beneficial long position in the shares of O, BX, FRG, NNN, SRC, VICI, EPRT, WPC either through stock ownership, options, or other derivatives. The firm provides strategic institutional capital to managers enhanced by attractive general partnership economics and an active governance role. Los Angeles. endobj
Our analysis suggests a 50%-plus probability of the board accepting Blue Owl's offer of $32.25 per share ('WER'). 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. Environmental, Social and Governance (ESG), HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American, Blue Owl Capital Inc. Fourth Quarter 2022 Results, Blue Owl Capital Inc. to Present at the Bank of America Financial Services Conference 2023. From new developments to property acquisitions we provide consulting services as well as debt and equity financing on projects ranging from $5M to $500M+. 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. <>
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