The _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. T@NY{*N Looking through the lens of price to net asset value, the baseline will reset noticeably lower if the Fed keeps at its current pace of hikes. 2017-2023 Oak Street Capital, LLC. Oak Street structured a $210M , five-building sale-leaseback last December from insurance giant MetLife, totaling 1.3M SF. 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. Under the agreement, ARKO Corp.s subsidiary GPM would own and operate the acquired businesses and Oak Street would own the real estate and lease it to GPM. All Rights Reserved. Issued by Microsoft's ASP.NET Application, this cookie stores session data during a user's website visit. Please disable your ad-blocker and refresh. If I had to guess, he doesn't mind the 5.9% and 6.1% annual growth in AFFO and dividends, respectively, since 2016. 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. Just like Buffett, we've been aggressive buyers of shares when the stock has a steep decline. Kirkland & Ellis LLP acted as legal counsel to Blue Owl. The platform provides strategic institutional capital to managers typically enhanced by attractive general partnership economics and an active governance role. While the headline price is $32.25, the actual consideration appears less. CEO W. P. Carey Dave Gibbons '92 President Elberon Development Group Tom Grier '87 Managing Director JP Morgan Larissa Herczeg '96 Managing Partner Oak Street Real Estate Capital/Blue Owl Tom Hoban '95 President & CIO Kitson & Partners Malcolm Johnson '98 Founder & CEO Langdon Park Capital Bob Karnes '83 Managing Director BlackRock Matt Kenney The platform seeks to work with strongly aligned management teams with leading investment capabilities, oftentimes led and controlled by women and minorities. Forward-Looking StatementsCertain statements made in this release are forward looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Download this whitepaper to learn which top retail CRE brands are poised for big things in 2023. Our typical financing zone ranges from from $5M to $500M. 9 See similar companies for insight and prospecting. The net lease funds provide corporate tenants with the ability to optimize their balance sheets, delivering immediate liquidity, tax benefits, and operational flexibility. But Oak Street's losses rose nearly 40% to $376.2 million over the same period. Under the terms of the definitive merger agreement, STORE shareholders will . 4 0 obj Important factors that may cause actual results or outcomes to differ from those indicated in the forward-looking statements include, among others, the inability to complete and recognize the anticipated benefits of the Oak Street acquisition on the anticipated timeline or at all; costs related to the transaction and the integration of the Oak Street business and operations; Blue Owls ability to manage growth and execute its business plan; potential litigation involving Blue Owl; changes in applicable laws or regulations; the impact of other general economic, business, and competitive factors; the impact of the continuing COVID-19 pandemic on Blue Owls business and additional factors described in the RiskFactors section of our filings with the Securities and Exchange Commission (SEC). DFIN was Jason Clucas on LinkedIn: GIC and Oak Street Complete $15 Billion Acquisition of STORE Capital The firm provides strategic institutional capital to managers enhanced by attractive general partnership economics and an active governance role. Heis also the editor of The Forbes Real Estate Investor., Thomas has also been featured in Barron's, Forbes Magazine, Kiplingers, US News & World Report, Money, NPR, Institutional Investor, GlobeStreet, CNN, Newsmax, and Fox., He is the #1 contributing analyst on Seeking Alpha in 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2022 (based on page views) and has over 106,000 followers (on Seeking Alpha). Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. 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. Then, the agreement calls for STOR to not pay out its Q4 dividend, which would be 41 cents. We consider NNN the closest peer and consider the price differential of these two since Volk left (April 15, 2022). 41 + 2.5 is 43.5 cents. Monitor your investments 24 hours a day, around the clock from around the globe. That means a 10% premium today is worth a lot more than a 10% premium two rate hikes from now. Berkshire Global Advisors served as financial advisor and Willkie Farr & Gallagher LLP and Gibson, Dunn & Crutcher LLP acted as legal counsel to Oak Street. It's that real estate division - Oak Street Real Estate Capital - that's officially bidding on STOR. 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. For more information, please visit us atwww.blueowl.com. After submitting your request, you will receive an activation email to the requested email address. All rights reserved. stream Sep 2015 - Present7 years 6 months. 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. Oak Street Real Estate Capital LLC is reportedly revisiting the possibility of buying real estate from Kohl's Corp. 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 firm was founded in 2009 and headquartered in Chicago, Illinois. I am not receiving compensation for it (other than from Seeking Alpha). Marketing and Client Relations. Any such forward-looking statements are made pursuant to the safe harbor provisions available under applicable securities laws and speak only as of the date of this presentation. Vice President. 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. We are excited to join the Blue Owl team and add our flexible real estate solutions to the platform.". In August 2021, Oak Street acquired The Bow in Calgary for $1.2 billion. Nothing to lose with our FREE 2-week trial. With your permission, we also use cookies and similar technologies to provide enhanced functionality, to improve performance, and to analyze site usage. On the other hand, if conditions are as expected or worse, a sale at that valuation becomes a smart move. April 21, 2021. Our analysis suggests a 50%-plus probability of the board accepting Blue Owl's offer of $32.25 per share ('WER'). Information on investment strategy, limited partners, team and returns for Oak Street Real Estate Capital Net Lease Property Fund. 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. Mr. Milek founded Ridgewood Capital, a real estate advisory firm, in 2008. Already have an account? 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. To do that, we need to start with what differentiates STOR. The firm was founded in 2009 and headquartered in Chicago, Illinois. Before we get into the specifics of the acquisition, we need to understand the buyer's perspective. 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. The platform seeks to work with strongly aligned management teams with leading investment capabilities, oftentimes led and controlled by women and minorities. Email: bh@oakstcap.com We've written in-depth articles on Blue Owl and will only touch on the most relevant points here. AddThis sets this cookie to ensure that the updated count is seen when one shares a page and returns to it, before the share count cache is updated. 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. 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). Although human nature is to irrationally use the rearview mirror to drive our investment portfolios (e.g. Past performance is not a guide to future results. The firm was founded in 2009 and headquartered in Chicago, Illinois. 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. Los Angeles. See our latest interview with FRG's CEO here. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. If you experience any issues with this process, please contact us for further assistance. What does this mean for CRE professionals? If that continues, the AUM engine keeps chugging along and greater asset management and incentive fee income is generated. STOR's leverage based on long-term debt as of the end of Q2 was 41%. 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. 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. 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. The transaction was previously announced in October of 2021. xT]o0}pIMk;*RvPT6:xnyqtnZ\`|y Oaktree Capital Management is a leader among global investment managers specializing in alternative investments. Is $ 32.25, the actual consideration appears less $ 5M to $.. For $ 1.2 billion these two since Volk left ( April 15, 2022.... Future results and greater asset management and incentive fee income is generated end. Llp acted as legal counsel to Blue Owl headquartered in Chicago, Illinois women and minorities rearview mirror drive. 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