Key Points Bed Bath & Beyond said it has completed a sale-leaseback transaction with an affiliate of Oak Street Real Estate Capital. (Brad Thomas targets 75% probability of acceptance.). Oak street is private equity real estate firm based in Chicago that focuses on structuring sale-leasebacks. Oak Street specializes in providing flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. 4 0 obj CEO up until two quarters ago (no one at Wide Moat Research has any affiliation with STORE Capital outside of owning common equity). 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. 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The #1 Service For Safe and Reliable REIT Income. Oak Street has agreed to purchase real estate holding convenience store brands and fueling stations and lease it to GPM Investments. Set by addthis.com to determine the usage of addthis.com service. Chairman & CEO Ben Mohns Head of Asset Management - North America Brian Mutchler Head of Special Situations Erin Nahumyk Chief Accounting Officer Geoff Regnery Global Head of Investor Relations Jenna Sheehan Head of Investor Relations - North America, Chief Marketing Officer Joey Lansing Global Head of Portfolio Management & Strategy 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. But the deal would be contingent on Oak Street raising rents 1.5% annually, and for its backers to realize a 7.25% initial return. But they eventually overcorrect. In August 2021, Oak Street acquired The Bow in Calgary for $1.2 billion. Brad Thomas is the CEO of Wide Moat Research ("WMR"), a subscription-based publisher of . . From new developments to property acquisitions we provide consulting services as well as debt and equity financing on projects ranging from $5M to $500M+. 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. 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. I (Williams Equity Research) analyzed several of Owl Rock's private offerings on behalf of large institutional investors and know the management team well. About Blue OwlBlue Owl is an alternative asset manager that provides investors access to Direct Lending and GP Capital Solutions strategies through a variety of products. Blue Owl Capital's management team is comprised of seasoned investment professionals with more than 25 years of experience building alternative investment businesses. Marc received a B. My team and I look forward to partnering with the Blue Owl team to bring Oak Streets differentiated product offerings to a new base of investors and to collaborate to bring additional investment opportunities to investors in Oak Streets funds down the line.. we also upgraded STOR to a Strong Buy in 2017 weeks before Berkshire purchased the initial tranche, BRK-A has reduced its stake in STOR as of Q2-22, Nothing to lose with our FREE 2-week trial. Blue Owl has approximately 250 employees across its Direct Lending and GP Capital Solutions divisions and has six offices globally. 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 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 Seeding and Strategic Capital platform was founded with the focus of investing in early-stage real estate managers. 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. Doug Ostrover, Co-Founder and CEO of Blue Owl, said: "We are thrilled to officially welcome Marc and the Oak Street team to Blue Owl. 3 0 obj Find Michael's email address, mobile number, work history, and more. 99.5% occupancy as of the end of Q2 is also difficult to beat. From beginning to end, Oak Street helped me source the best Property available on the market. That's 50% more than SRC, nearly 10 times NTST, and double EPRT. Markets never sleep, and neither does Bloomberg News. STOR's weighted average lease term of 13.2 years also is excellent and only bested by EPRT's 13.8. This week, it was announced that GIC and Blue Owl's Oak Street agreed to acquire STORE for $14B in an all-cash transaction. A Record 25% of Redfin Users are Looking to Move to a New City, More Companies Are Adding Space Than Removing, But Only a Year Out, Unlimited access to GlobeSt and other free ALM publications, Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications, 1 free article* every 30 days across the ALM subscription network, Exclusive discounts on ALM events and publications. It had $119 billion in assets under management ("AUM") as of the last reporting period. Sophie Aldrich, CFA. For more information, please visit us at www.blueowl.com. Yet, these 10 retail brands prove there are many untapped opportunities in the year ahead. Prominent historians and conservation experts explain the architectural relevance of buildings ranging from houses of worship to former colonial outposts and tenements. 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. Mr. Hampton founded Oak Street Capital in 2003. STOR itself has a BBB rating with a positive outlook from S&P. Oak Street Real Estate Capital is a diversified real estate investment firm. Monitor your investments 24 hours a day, around the clock from around the globe. KeyBanc Capital Markets (KBCM) served as Sole Placement Agent on the transaction, which was the Companys inaugural private placement. It will lease back the space from Oak Street Real Estate Capital, the Chicago private-equity firm, under long-term leases. ", 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. Then, the agreement calls for STOR to not pay out its Q4 dividend, which would be 41 cents. endobj 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. From new developments to property acquisitions we provide consulting services as well as debt and equity financing on projects ranging from $5M to $500M+. Investor ContactAnn DaiHead of Investor Relationsowlir@blueowl.com, Media ContactProsek PartnersDavid Wells/Nick TheccanatPro-blueowl@prosek.com. Oak Street Real Estate Capital LLC is reportedly revisiting the possibility of buying real estate from Kohl's Corp. The products, services, information and/or materials contained within these web pages may not be available for residents of certain jurisdictions. Your single source for commercial real estate consulting and financing. The Net Lease platform is focused on acquiring properties net-leased to investment grade and creditworthy tenants. ", 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. 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. As per the report, Oak . Chicago-headquartered Oak Street Real Estate Capital is the only newcomer to land in the PERE 100's top 20. Office 1005, But Oak Street's losses rose nearly 40% to $376.2 million over the same period. Oak Street Capital is your single source for major real estate consulting and financing. 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). 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. Oak Street Real Estate managed $10.8 billion at the end of June, primarily in the sale-leaseback business. The private equity firm could buy up to $2 billion worth of the. CVS' buyout price is about 73% higher than Oak Street's stock market value before reports first surfaced in . 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