Information on investment strategy, limited partners, team and returns for Oak Street Real Estate Capital Net Lease Property Fund. 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Hisexperience includes providing strategic solutions for debt restructurings,anddispositions, asset valuations, liquidation strategies, and portfolio assessments. The firm was founded in 2009 and headquartered in Chicago, Illinois. Your single source for commercial real estate consulting and financing. Los Angeles. 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. AddThis sets this cookie to track page visits, sources of traffic and share counts. 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. The transaction was previously announced in October of 2021. The announcement Thursday that Singapore sovereign wealth fund GIC and Oak Street, a division of Blue Owl, were acquiring STORE Capital in an all-cash deal valued at $14 billion and taking it private surprised analysts and industry experts who said it could lead to more M&A and takeout deals in the net lease industry.. If I had to guess, he doesn't mind the 5.9% and 6.1% annual growth in AFFO and dividends, respectively, since 2016. 2017-2023 Oak Street Capital, LLC. You can sign up for additional alert options at any time. T@NY{*N I have no business relationship with any company whose stock is mentioned in this article. 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. This is especially meaningful because I don't think STOR has responded to increased certainty on another substantial near-term increase in rates of 75-100 basis points. 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. We specialize in REITs and high-quality dividend companies. Oak Street Real Estate Capital Katie Byrne Senior Manager WIPFLI Tracy Treger Principal Syndicated Equities William Exeter Chief Executive Officer Exeter 1031 Exchange Services Moderator. CEO up until two quarters ago (no one at Wide Moat Research has any affiliation with STORE Capital outside of owning common equity). About Us Financing Areas Contact Us 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. endobj Monitor your investments 24 hours a day, around the clock from around the globe. The annual rent escalators built into its leases are 1.8% and considered sufficient in most environments. 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. 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. The stock price certainly hasn't. The firm focuses on two primary strategies: structuring sale-leasebacks, which includes triple net leases, as well as providing seed and strategic capital. Spicewood, TX 78669, Tel: +1 (312) 731-3391 STOR's leverage based on long-term debt as of the end of Q2 was 41%. Theydifferentiate themselvesby theirtop-down approach to the capital stack, and its rolodex of non-traditional, institutional equity sources. The firm was founded in 2009 and headquartered inChicago, Illinois. All Rights Reserved. Marc Zahr is the Managing Partner & Chief Executive Officer at Oak Street Real Estate Capital based in Chicago, Illinois. Oak Street specializes in providing flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. Understandably, investors hope any premium to be on top of the long-term average cash flow multiple rather than a beaten down valuation. The Net Lease platform is focused on acquiring properties net-leased to investment grade and creditworthy tenants. All rights reserved. Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com. A supplemental investor presentation on the transaction is available on the Investor Resources section of Blue Owls website atwww.blueowl.com. It does not store any personal data. 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. Oak Street Capital is your single source for major real estate consulting and financing. To learn more about the cookies we use, please see our. You also have the option to opt-out of these cookies. 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. Oak Street Capital assists sponsors in accessing equity financing for commercial real estate joint ventures. The products, services, information and/or materials contained within these web pages may not be available for residents of certain jurisdictions. This cookie is set by GDPR Cookie Consent plugin. The deal netted the retailer $250 million in proceeds.. The Seeding and Strategic Capital platform was founded with the focus of investing in early-stage real estate managers. % Why? First, investors had anticipated a dividend increase for Q3. As mentioned in that article, Berkshire Hathaway owns 14.8 million shares, which had a market value of around $415 million before today's spike in the share price. 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. <> These cookies ensure basic functionalities and security features of the website, anonymously. 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. To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. Oak Street Real Estate Capital is a diversified real estate investment firm. Disclosure: 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. 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). Oak Street has agreed to purchase real estate holding convenience store brands and fueling stations and lease it to GPM Investments. 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. from 8 AM - 9 PM ET. This Q4 retail quarterly index report reveals how economic headwinds impacted key retail CRE categories during the critical holiday shopping season, and what their performance tells us about consumer behavior and brick-and-mortar retail in the year ahead. With your permission, we also use cookies and similar technologies to provide enhanced functionality, to improve performance, and to analyze site usage. 14 times to 15) for a share price around $35 - but no higher. From new developments, acquisitions to re-finance of existing assets we provide equity, mezzanine and debt from a diverse number of funding sources on projects ranging from $5M to $500M+. Berkshire Global Advisors served as financial advisor andWillkie Farr& Gallagher LLP acted as legal counsel to Oak Street. April 21, 2021. Blue Owl said the transaction adds a complementary real estate capability to Blue Owl's suite of financing solutions for use rs of capital and offer s institutional and retail investors additional compelling investment option s.. Oak Street is a Chicago-based firm, founded in 2009 with over 35 employees and with $10.8 . 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 Real Estate Capital is a diversified real estate investment firm. 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