Oak Street's Chicago office is now an additional office for Blue Owl. 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? Oak Street Real Estate Capital, LLC ("Oak Street") is a private equity real estate firm based in Chicago, Illinois. April 21, 2021. xT]o0}pIMk;*RvPT6:xnyqtnZ\`|y 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. Our typical financing zone ranges from from $5M to $500M. Miami reclaimed the top destination for the first time since August. I wrote this article myself, and it expresses my own opinions. The cookie is used to store the user consent for the cookies in the category "Other. Navigating interest rate disruption: How real-time data can facilitate better CRE decisions amid volatility. 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. Oak Street specializes in providing flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. We recently added an all-new Ratings Tracker called iREIT Buy Zone to help members screen for value. Please disable your ad-blocker and refresh. 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. Already have an account? Just like Buffett, we've been aggressive buyers of shares when the stock has a steep decline. Investor ContactAnn DaiHead of Investor Relationsowlir@blueowl.com, Media ContactProsek PartnersDavid Wells/Nick TheccanatPro-blueowl@prosek.com. 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. Ultimately the market will decide whether the offer is fair, but we can perform our own analysis to see how it compares against where peers trade and STOR historically. Find Michael's email address, mobile number, work history, and more. Oak Street specializes in providing flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. 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). About Oak Street. Set by addthis.com to determine the usage of addthis.com service. Oak Street Real Estate Capital is a diversified real estate investment firm. Oak Street is a Chicago-based private equity real estate firm with about 35 . These cookies will be stored in your browser only with your consent. Email: bh@oakstcap.com The firm had approximately $70.5 billion of assets under management as of September 30, 2021. (Brad Thomas targets 75% probability of acceptance.). 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. 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. Los Angeles. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously. 2017-2023 Oak Street Capital, LLC. In August 2021, Oak Street acquired The Bow in Calgary for $1.2 billion. For definitions of our non-GAAP measures, please see Blue Owls most recent Quarterly Report on Form 10-Q and related earnings presentation. Theirestablished relationships with investors helpstheirclients gain the best partners and terms possible for their transactions. Oak Street offers a unique. J/kX0FTTDc(_LQ^^~xl{y|?wn3(( bp8Z]43w40Ko^zytwt5ODIMC_) ohi|*l='^Sv9D_R]|,`"0pA=zY M7rLX^ZX9=s)oApyd]RECbM. 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. Oak Street Real Estate managed $10.8 billion at the end of June, primarily in the sale-leaseback business. 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. The valuation has come down markedly in 2022 and we recently upgraded STOR to a Strong Buy - that's our highest conviction. The firm was founded in 2009 and headquartered inChicago, Illinois. 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. Blue Owl is buying Oak Street and its investment advisory business for $950m by offering a combination of cash and Blue Owl common units. Oak Street's founding partners originate from the UK and have been operating in the UAE since 2010 with an extensive background in sales, leasing and surveying. Announces $12.9 Billion Final Close for Dyal Capital Partners V, Owl Rock leads $401 million financing for Arctic Wolf. endobj Think 2008 -2020. The firm focuses on structuring sale-leasebacks, which includes triple net leases, as well as providing seed and strategic capital. It's that real estate division - Oak Street Real Estate Capital - that's officially bidding on STOR. 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. Oak Street will commit up to $1 billion to the program for one year. Spicewood, TX 78669, Tel: +1 (312) 731-3391 endobj The private equity firm could buy up to $2 billion worth of the. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors. 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. 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. 2009 2017 2019 2020 2021 Oak Street Real Estate Capital, LLC (Oak Street) was founded PA SERS makes their first investment in Oak Street PA SERS makes their second With more than forty years of successful real estate and financing expertise, Oak Street Capital has financed more than $2 billion for its clients. 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. The retailer sold 2.1 . Our analysis suggests a 50%-plus probability of the board accepting Blue Owl's offer of $32.25 per share ('WER'). Oak Street specializes in providing unique and flexible real estate solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. 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. Oak street is private equity real estate firm based in Chicago that focuses on structuring sale-leasebacks. The firm was founded in 2009 and headquartered in Chicago, Illinois. Carmel, IN. Set by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category . 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. 21917 Rock Wren Rd See Michael Reiter's compensation, career history, education, & memberships. Mr. Hampton has extensive experience structuring and closing construction loans and bridge loans as well. The firm IPO'd in 2014, and that's a date we should keep in mind. The deal netted the retailer $250 million in proceeds.. Understandably, investors hope any premium to be on top of the long-term average cash flow multiple rather than a beaten down valuation. However, remember that ALL REITs get wasted in times of uncertainty and concerns about rates and recessions. But Oak Street's losses rose nearly 40% to $376.2 million over the same period. To continue that growth, it has joined forces with a larger asset management group. All Rights Reserved. The platform seeks to work with strongly aligned management teams with leading investment capabilities, oftentimes led and controlled by women and minorities. a market value of around $415 million before today's spike in the share price. The transaction was previously announced in October of 2021. 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. Investor ContactAnn DaiHead of Investor Relations[emailprotected], Media ContactProsek PartnersDavid Wells/Nick Theccanat[emailprotected], Cision Distribution 888-776-0942 Oak Street Real Estate Capital is a diversified real estate investment firm. Blue Owl Capital's management team is comprised of seasoned investment professionals with more than 25 years of experience building alternative investment businesses. Mr. Hampton founded Oak Street Capital in 2003. 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. Oak Street has been very active in the public REIT M&A space. 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. t{^n.5.4|{yZ|YOOwu yM^Fg( Alternative asset manager Blue Owl Capital has agreed to acquire Oak Street Real Estate Capital for $950 million. The cookie is used to store the user consent for the cookies in the category "Analytics". But they eventually overcorrect. 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