Download this whitepaper to learn which top retail CRE brands are poised for big things in 2023. About Oak Street. 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. Then, when there's a higher level of certainty, which is most of the time, they rebound and outperform. 7 0 obj The firm was founded in 2009 and headquartered in Chicago, Illinois. The transaction is expected to close in the fourth quarter of 2021 and is subject to customary closing conditions. 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. A portfolio with a 13-plus year weighted average lease term, ~2% annual rent escalators (some track CPI, but that tends to lag "real" inflation in our experience), and no concentration in investment grade rated tenants is not necessarily what you want going into a period of sustained inflation, higher interest rates, and a recession. Los Angeles. The firm was founded in 2009 and headquartered inChicago, Illinois. Oak Street Real Estate Capital has been one of the fastest growing managers in the private real estate space this past decade. (Note: BRK-A has reduced its stake in STOR as of Q2-22.). Bloomberg Surveillance: Early Edition with Francine Lacqua live from London, bringing insight on global markets and the top business stories of the day. 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. Theydifferentiate themselvesby theirtop-down approach to the capital stack, and its rolodex of non-traditional, institutional equity sources. That's 50% more than SRC, nearly 10 times NTST, and double EPRT. You must click the activation link in order to complete your subscription. (Brad Thomas targets 75% probability of acceptance.). This just in. The annual rent escalators built into its leases are 1.8% and considered sufficient in most environments. Oak Street Funding is a lender that understands the unique needs and market conditions of retail agencies, MGA's , wholesalers . 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.. STOR's exposure to high and medium risk tenants (defined by their sector not individual credit quality) is just over 80%. Use the PitchBook Platform to explore the full profile. The Seeding and Strategic Capital business focuses on investing in early-stage real estate managers across various industry sectors. Townhouse | Five Palm | 5 Star Facilities, Custom Built | N Frond | Skyline View | Must View, Exclusive | Upgraded | Fully Furnished | VOT. Oak Street specializes in providing flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. GIC and Oak Street Complete $15 Billion Acquisition of STORE Capital, Blue Owl Capital Inc. When typing in this field, a list of search results will appear and be automatically updated as you type. 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. The firm was founded in 2009 and headquartered in Chicago, Illinois. Markets never sleep, and neither does Bloomberg News. The firm was founded in 2009 and headquartered in Chicago, Illinois. Copyright Blue Owl Capital Inc. 2023. We look forward to working closely together and are excited for what the future holds. Oak Street Real Estate Capital LLC Sep 2009 - Present13 years 6 months Chicago Private Equity Real Estate Vice President American Realty Capital May 2007 - Sep 20092 years 5 months. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". Private Placement of Senior Secured Notes, Coordinating Lead ArrangerAdministrative Agent, Massachusetts Development Finance Agency Series 2022, Sales Tax and Telecommunications Revenue Refunding Bonds, Left Lead ArrangerJoint BookrunnerAdministrative Agent, Lead ArrangerBookrunnerAdministrative Agent, has entered into an affiliation agreement with, has divested of a 14.2 MW community solar portfolio in Illinois to, tpg-growth-and-novant-health-partnership-medquest-associates, massachusetts-development-finance-agency-dyouville-senior-care, utah-telecommunication-open-infrastructure-agency. x\Te. 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. Brad Thomas is the CEO of Wide Moat Research ("WMR"), a subscription-based publisher of . 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 closing purchase price of$950 millionwill be funded through a combination of cash and Blue Owl common units (up to an aggregate of approximately 39 million Blue Owl common units issuable at closing). The firm had approximately $70.5 billion of assets under management as of September 30, 2021. Oak Street Real Estate Capital is a diversified real estate investment firm. The transaction was previously announced in October of 2021. Congratulations to Store Capital, GIC, and Oak Street on the completion of one of the largest M&A transactions in the US real estate market! Upon closing of the transaction, key members of the Oak Street leadership team will remain in place leading the Oak Street business, and Oak StreetsChicagooffice will become an additional office for Blue Owl. To learn more about the cookies we use, please see our. 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. Oak Street Capital LLC 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. 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. Spicewood, TX 78669, Tel: +1 (312) 731-3391 Real Assets. I wrote this article myself, and it expresses my own opinions. Since the deal is all cash, another buyer must improve on the $32.25 to be feasible. (Podcast), CEO/Mng Dir/Co-Founder, Oak Street Real Estate Capital LLC. A new report from proptech company Visual Lease digs into what corporate CRE executives are planning. (Remember that we also upgraded STOR to a Strong Buy in 2017 weeks before Berkshire purchased the initial tranche.). . Web: www.oakstcap.com. Oak street is private equity real estate firm based in Chicago that focuses on structuring sale-leasebacks. Yet, these 10 retail brands prove there are many untapped opportunities in the year ahead. The cookies is used to store the user consent for the cookies in the category "Necessary". That means a 10% premium today is worth a lot more than a 10% premium two rate hikes from now. The firm provides strategic institutional capital to managers enhanced by attractive general partnership economics and an active governance role. 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. And this offer includes a 2-Week FREE TRIAL plus my FREE book. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors. Navigating interest rate disruption: How real-time data can facilitate better CRE decisions amid volatility. Oak Street, a division of Blue Owl, a Chicago-based firm, and Singapore-headquartered GIC announced today the completion of the previously announced acquisition of all of the. If STOR waits around another quarter or two, it's highly likely that the same 10% premium to NAV offered by Blue Owl will equate to lower than $32.25 per share. 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 . 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. Zahr and Hennessey compare the offer to corporate sale-leaseback . Carmel, IN. These cookies will be stored in your browser only with your consent. Our typical financing zone ranges from from $5M to $500M. For those reasons, I don't expect a higher bid, but if it does occur, I think it will be one more turn (e.g. 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. ", 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. endobj The market, however, appears concerned that rents will keep up with inflation. 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+. t{^n.5.4|{yZ|YOOwu yM^Fg( I (Williams Equity Research) analyzed several of Owl Rock's private offerings on behalf of large institutional investors and know the management team well. 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. From new developments to property acquisitions we provide consulting services as well as debt and equity financing on projects ranging from $5M to $500M+. 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. On one hand, STOR's stock decline of ~33% in the past two quarters means $32.25 per share is likely to irritate many investors (especially since there's no dividend in Q4). We recently added an all-new Ratings Tracker called iREIT Buy Zone to help members screen for value. 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. I have no business relationship with any company whose stock is mentioned in this article. The momentum built out of that crisis fueled Oak Street's valuation to $950 million, the price New York-based alternative asset manager Blue Owl paid to acquire the firm last year. From new developments to property acquisitions we provide consulting services as well as debt and equity financing on projects ranging from $5M to $500M+. Street complete $ 15 Billion Acquisition of STORE Capital, Blue Owl Inc... In Chicago, Illinois company Visual Lease digs into what corporate CRE executives planning... Assets under management as of Q2-22. ) zahr and Hennessey compare the offer to corporate sale-leaseback are planning for... 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