And it said in a statement that it would use the proceeds from. Mr. Hampton founded Oak Street Capital in 2003. The cookie is used to store the user consent for the cookies in the category "Performance". Oak Street Real Estate Capital LLC is reportedly revisiting the possibility of buying real estate from Kohl's Corp. Oak Street Real Estate Capital is a diversified real estate investment firm. Miami reclaimed the top destination for the first time since August. Kirkland & Ellis LLP acted as legal counsel to Blue Owl. Bloomberg Daybreak Europe, anchored live from London, tracks breaking news in Europe and around the world. "Illini Angels" is recruiting . Our Mission Analytical cookies are used to understand how visitors interact with the website. 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 . Markets never sleep, and neither does Bloomberg News. Marc received a B. 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. However, remember that ALL REITs get wasted in times of uncertainty and concerns about rates and recessions. The firm was founded in 2009 and headquartered in Chicago, Illinois. If you have an ad-blocker enabled you may be blocked from proceeding. With your permission, we also use cookies and similar technologies to provide enhanced functionality, to improve performance, and to analyze site usage. STOR strikes a great balance of a large, established platform that isn't too big. We specialize in REITs and high-quality dividend companies. Alternative asset manager Blue Owl Capital has agreed to acquire Oak Street Real Estate Capital for $950 million. 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. Blue Owl Capital has over 300 employees across its Direct Lending and GP Capital Solutions divisions and has nine offices globally. We recently added an all-new Ratings Tracker called iREIT Buy Zone to help members screen for value. Again, this is not really at $32.25 as I pointed out. 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. 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. Oak. Download this eBook and learn how CRE professionals can proactively manage economic challenges by leveraging the power of data. Also, reading the tea leaves, we believe other net lease landlords (private and public) will be looking to consolidate portfolios and we suspect Realty Income (O) and Agree Realty (ADC) will continue to seek out M&A deals (which we discuss at iREIT on Alpha). The #1 Service For Safe and Reliable REIT Income. endobj Web: www.oakstcap.com. J/kX0FTTDc(_LQ^^~xl{y|?wn3(( bp8Z]43w40Ko^zytwt5ODIMC_) ohi|*l='^Sv9D_R]|,`"0pA=zY M7rLX^ZX9=s)oApyd]RECbM. The annual rent escalators built into its leases are 1.8% and considered sufficient in most environments. Blue Owl Capital Inc. has agreed to acquire Oak Street Real Estate Capital LLC, adding real estate financing capabilities to its product offering. First, investors had anticipated a dividend increase for Q3. 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. All Rights Reserved. Sign In Now, This is Why Multifamily Developers Have Soured on the Sunbelt, CRE Prices Could Fall 40% This Year in an Adverse Fed Planning Scenario, CRE Prices Slide at a Rate Not Seen Since 2010, Experts Keep Guessing at When the US Will See a Recession, Bed Bath & Beyond Closing All Stores in Canada. Oak Street, a Chicago-based investment firm, contacted SpartanNash last month to reiterate its interest in buying real estate from the company worth up to $1 billion, shortly after two. 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Mr. Milek specializes in completingrisk assessments and action plans for distressed financial institutions. You can unsubscribe to any of the investor alerts you are subscribed to by visiting the unsubscribe section below. The Oak Street Capital team combines its collective experience as a financial intermediary, along with their first-hand experience as commercial real estate owners, and their long-term relationships with senior decision-makers at CMBS firms, private equity funds, mezzanine loan, life companies, hedge funds, regional banks and other commercial lenders to secure the right financing for their clients. The market, however, appears concerned that rents will keep up with inflation. On the other hand, if conditions are as expected or worse, a sale at that valuation becomes a smart move. The cookies is used to store the user consent for the cookies in the category "Necessary". Its top 10 tenant concentration is a mere 17.7%, which is best and class and well under O's 28.1%, for example. The cookie is used to store the user consent for the cookies in the category "Analytics". 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. Ut enim ad minim veniam. Sophie Aldrich, CFA. All Rights Reserved. Oak Street's Chicago office is now an additional office for Blue Owl. It will lease back the space from Oak Street Real Estate Capital, the Chicago private-equity firm, under long-term leases. 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. Blue Owl assumes no obligation to update or revise any such forward-looking statements except as required by law. 9 See similar companies for insight and prospecting. The transaction is expected to close in the fourth quarter of 2021. Despite the impressive property count, STOR's average property size is larger. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. 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. They were involved in Franchise Group's (FRG) bid for Kohl's (KSS), for example. 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 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. 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 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 retailer sold 2.1 . CEO up until two quarters ago (no one at Wide Moat Research has any affiliation with STORE Capital outside of owning common equity). At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias, At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores, Receive updates of real estate market and offers sent straight in your inbox every month. t{^n.5.4|{yZ|YOOwu yM^Fg( Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously. 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. This cookie is set by GDPR Cookie Consent plugin. <>/XObject<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 720 540] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> 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. The platform seeks to work with strongly aligned management teams with leading investment capabilities, oftentimes led and controlled by women and minorities. 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 unit, Petershill, in November purchased a minority stake in Oak Street Real Estate Capital LLC, which has raised over $6.5 billion since launching in 2009. The firm was founded in 2009 and headquartered in Chicago, Illinois. Oak Street signed MetLife to 12-year triple net leases on the buildings . We use essential cookies to allow our site to function. Assuming 6%+, which is below their reported AFFO growth, that's 2.5 cents a share, or equal to the 2021 increase. The question is whether STOR's multiple will rise after rate increases. Oak Street Real Estate Capital is a diversified real estate investment firm. I have no business relationship with any company whose stock is mentioned in this article. Oak Street manages both commingled funds and separate accounts on. Mr. Hampton has extensive experience structuring and closing construction loans and bridge loans as well. For more information, please visit us atwww.blueowl.com. . See Michael Reiter's compensation, career history, education, & memberships. "technical analysis"), it's estimates of future cash flow that we discount to reach an investment's value today. The products, services, information and/or materials contained within these web pages may not be available for residents of certain jurisdictions. 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. Blue Owl was formed through a combination of Owl Rock, a lender to middle-market and upper-middle-market . 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. I wrote this article myself, and it expresses my own opinions. Corporate Relations Get the big picture on a company's affiliates and who they do business with. 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. It works only in coordination with the primary cookie. T@NY{*N KBCM also advised the Company on a private rating from an NRSRO ahead of the issuance. We are excited to join the Blue Owl team and add our flexible real estate solutions to the platform.". Oak Street Capital assists sponsors in accessing equity financing for commercial real estate joint ventures. How has Blue Owl garnered so much capital? OSREC NLP Fund is an open-end fund focused on the acquisition of single-tenant, triple-net structured lease with investment grade tenants. At Blue Owl, we promise to treat your data with respect and will not share your information with any third party. The firm was founded in 2009 and headquartered in Chicago, Illinois. The net proceeds from the issuance of the Notes will be used to repay outstanding borrowings under the Revolving Credit Facility and for general corporate purposes, including potential acquisitions. Email: bh@oakstcap.com The valuation has come down markedly in 2022 and we recently upgraded STOR to a Strong Buy - that's our highest conviction. Oak Street has built the industrys preeminent net lease platform with meaningful capital, scale and the expertise necessary to enter into large, complex sale-leaseback transactions with major, creditworthy corporations. Faucibus tristique felis potenti ultrices ornare rhoncus semper hac facilisi Rutrum tellus lorem sem velit nisi non pharetra in dui. Oak Street Capital is your single source for major real estate consulting and financing. The deal is expected to close in the fourth quarter, subject to customary closing conditions. Copyright Blue Owl Capital Inc. 2023. Oak Street operate to the most professional standards. 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. These cookies will be stored in your browser only with your consent. 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. Under the agreement, ARKO Corp.'s subsidiary GPM would. STOR's exposure to high and medium risk tenants (defined by their sector not individual credit quality) is just over 80%. Our typical financing zone ranges from from $5M to $500M. 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. Oak Street Real Estate Capital, LLC ("Oak Street") is a private equity real estate firm based in Chicago, Illinois. Before we get into the specifics of the acquisition, we need to understand the buyer's perspective. 6 0 obj The Net Lease platform is focused on acquiring properties net-leased to investment grade and creditworthy tenants. Nothing to lose with our FREE 2-week trial. (Note: BRK-A has reduced its stake in STOR as of Q2-22.). The platform seeks to work with strongly aligned management teams with leading investment capabilities, oftentimes led and controlled by women and minorities. Oak Street Real Estate Capital, LLC's proposed acquisition of certain properties from Granite Real Estate Investment Trust and Granite REIT Fasken Reading Time 1 minute read 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. 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. Chairman & CEO Ben Mohns Head of Asset Management - North America Brian Mutchler Head of Special Situations Erin Nahumyk Chief Accounting Officer Geoff Regnery Global Head of Investor Relations Jenna Sheehan Head of Investor Relations - North America, Chief Marketing Officer Joey Lansing Global Head of Portfolio Management & Strategy Please. Is this happening to you frequently? Its placing comes after raising a total of $6.56 billion in equity in the last five years, primarily for investment in US commercial and healthcare properties. <> Chris Ahn. All rights reserved. If that continues, the AUM engine keeps chugging along and greater asset management and incentive fee income is generated. Additionally, Mr. Milek has created risk rating systems,including the real time asset modeling & valuation models andhas extensive experience in developingloan policies and procedures. For more information, please visit us at www.blueowl.com. AddThis sets this cookie to track page visits, sources of traffic and share counts. (Brad Thomas targets 75% probability of acceptance.). Mr. Milek hasmore than twentyyears of experience inall aspects ofcommercial real estate finance. What does this mean for CRE professionals? His extensive experience includes debt refinancing and restructuring, mezzanine loan executions, preferred and joint venture equity, private equity. Zahr and Hennessey compare the offer to corporate sale-leaseback . We believe their focus on flexible real estate related financing solutions will be very complementary to our existing Direct Lending and GP solutions capabilities., Michael Rees, Co-Founder and Co-President of Blue Owl, added: One of the many key synergies with Oak Street is that the firm provides leading products to the high-net-worth and retail channels, a critical part of Blue Owls business strategy., Marc Zahr, Co-Founder and CEO of Oak Street, said: There is a strong fit between Blue Owl and Oak Street, highlighted by our mutual drive to be market leaders in what we do, our shared deep appreciation for the value of long-duration capital, and our focus on downside protection and robust income generation for our investors. Action plans for distressed financial institutions issues with this process oak street real estate capital ceo please contact us for further.. 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