But they eventually overcorrect. The #1 Service For Safe and Reliable REIT Income. Blue Owl was formed through a combination of Owl Rock, a lender to middle-market and upper-middle-market . The firm was founded in 2009 and headquartered in Chicago, Illinois. Lets walk through the mechanics of the deal and what it means for shareholders of both entities. Corporate Relations Get the big picture on a company's affiliates and who they do business with. Marc Zahr, Oak Street Real Estate Capital LLC: Profile and Biography - Bloomberg Markets Live Now Bloomberg TV+ Bloomberg Surveillance Bloomberg Surveillance with Tom Keene,. O's way bigger at nearly 11,500 properties, but that's a whale very few acquirers can realistically take down. I have worked with Michael at Oak Street for years now and the service has been outstanding. 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. Investor ContactAnn DaiHead of Investor Relationsowlir@blueowl.com, Media ContactProsek PartnersDavid Wells/Nick TheccanatPro-blueowl@prosek.com. 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? 2 0 obj 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 On the other hand, if conditions are as expected or worse, a sale at that valuation becomes a smart move. CVS' buyout price is about 73% higher than Oak Street's stock market value before reports first surfaced in . 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. Oak Street is committing up to $1 billion. Its top 10 tenant concentration is a mere 17.7%, which is best and class and well under O's 28.1%, for example. endobj We consider NNN the closest peer and consider the price differential of these two since Volk left (April 15, 2022). 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. Oak Street Capitals mission as a financial advisory firm is to provide our clients with the best capital stack options for their commercial project or asset that optimizes their financial position and returns consistently. Oak Street Real Estate Capital is a diversified real estate investment firm. 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. That's below the 52-week high of $36.13 and well below its pre-pandemic stock price that exceeded $40 per share multiple times. 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. Crombie REIT ( CRR-UN-T) will sell a majority non-managing interest in 15 additional grocery store-anchored retail properties across Canada to Oak Street Real Estate Capital of Chicago for $193 million. Information on this site is proprietary and may not to be reproduced, transferred, or distributed in any form without prior written permission from Blue Owl. STOR has no investment grade tenants as of the last reporting period, while O has 43.2%. Oak street is private equity real estate firm based in Chicago that focuses on structuring sale-leasebacks. Previously, Marc was the Vice President Acquistions at American Realty Capital and also held positions at Merrill, TM Associates Management. Monitor your investments 24 hours a day, around the clock from around the globe. With your permission, we also use cookies and similar technologies to provide enhanced functionality, to improve performance, and to analyze site usage. Disclosure: WER is long STOR and OWL and short STOR put options. In addition, hehas extensive experience developing equity and mezzanine facilities across multiple product lines. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. O's is 13,000 sq ft vs. 26,000 for SRC and 35,000 for STOR. As per the report, Oak . The firm was founded in 2009 and headquartered in Chicago, Illinois. The cookie is used to store the user consent for the cookies in the category "Analytics". 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. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors. That last one is relevant as STOR has 30 days to shop the deal to another buyer. Our Mission A new report from proptech company Visual Lease digs into what corporate CRE executives are planning. 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. It is delivered on an as is basis without warranty or liability. 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The firm IPO'd in 2014, and that's a date we should keep in mind. % Oak Street's Chicago office is now an additional office for Blue Owl. 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With more than 30 years in real estate he has successfully closed more than $2 billion in transactions in real estate brokerage and financing. $32.25 - 43.5 is $31.815. 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. Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com. The Seeding and Strategic Capital platform was founded with the focus of investing in early-stage real estate managers. Grosvenor Business Tower, I was flattered to see that I was mentioned in the litigation (lawsuits are typical in this kind of M&A transaction): Adjusted funds from operations ("AFFO") is the most accurate way to measure cash flow, and using that metric, STOR's acquisition is approximately 14 times. Managing Director, Chief Product Officer and Global Head of Client Relations. Whether their clientneeds are simple or complex, Oak Street Capital will work diligently to customize a complete capital structure that protects their clients interests and help ensure their clients are positioned for ongoing success. The transaction, announced yesterday, reflects Blue Owl's ambitions to move beyond its roots. Prominent historians and conservation experts explain the architectural relevance of buildings ranging from houses of worship to former colonial outposts and tenements. 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. Then, the agreement calls for STOR to not pay out its Q4 dividend, which would be 41 cents. 6 0 obj We are excited to join the Blue Owl team and add our flexible real estate solutions to the platform.". 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. This cookie is set by GDPR Cookie Consent plugin. Oak. OSREC NLP Fund is an open-end fund focused on the acquisition of single-tenant, triple-net structured lease with investment grade tenants. from 8 AM - 9 PM ET. 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. Join iREIT on Alpha today to get the most in-depth research that includes REITs, mREIT, Preferreds, BDCs, MLPs, ETFs, Builders, Asset Managers, and we added Prop Tech SPACs to the lineup. 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 cookie is used to store the user consent for the cookies in the category "Performance". AddThis sets this geolocation cookie to help understand the location of users who share the information. The Net Lease platform is focused on acquiring properties net-leased to investment grade and creditworthy tenants. It's not complicated - performance is strong and consistent. . 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. The firm was founded in 2009 and headquartered in Chicago, Illinois. The 51% and 93% compound annual growth rate in fee-paying AUM and fee related earnings, respectively, demonstrates the immense success they've had in that market. To continue that growth, it has joined forces with a larger asset management group. Oaktree Capital Management is a leader among global investment managers specializing in alternative investments. Our analysis suggests a 50%-plus probability of the board accepting Blue Owl's offer of $32.25 per share ('WER'). 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. Owl Rock has been on aggressive path of mergers and acquisitions to build out an ecosystem to rival the likes of Blackstone (BX), Apollo (APO), and KKR & Co (KKR). 7 0 obj 99.5% occupancy as of the end of Q2 is also difficult to beat. Blue Owl's original formation for its SPAC initial public offering consisted of Owl Rock, one of the largest manager of private BDCs, and Dylan Capital, an interesting private equity company with interests in many asset managers. The deal netted the retailer $250 million in proceeds.. We know the company well and have written about it many times over the years. Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business. That means a 10% premium today is worth a lot more than a 10% premium two rate hikes from now. 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. I wrote this article myself, and it expresses my own opinions. Already have an account? That's 50% more than SRC, nearly 10 times NTST, and double EPRT. ", 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. 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