REAL ESTATE INVESTMENT
Capital Square | September 20, 2022
Capital Square, one of the nation's leading sponsors of tax-advantaged real estate investments and an active developer of multifamily communities, announced today the launch of its Private Equity Group, a new corporate division that will focus on single-family build-for-rent homes and other non-traditional real estate investment opportunities. Industry veterans, Jon Trott and Dave Platter, have joined Capital Square as managing directors to lead the new division.
"Build-for-rent homes are an increasingly popular choice among renters in the Southeast through Texas, where Capital Square actively invests in multifamily housing, Exceptionally strong demand has made build-for-rent a compelling investment strategy in response to a shortage of quality housing. With in-house development, capital markets, asset management and acquisitions, the build-for-rent space is a natural evolution for Capital Square and is another way to provide innovative and compelling options to a growing number of investors and financial advisors nationwide."
-Whitson Huffman, co-chief executive officer of Capital Square
Build-for-rent homes, comprised of communities of single-family homes built for renting, have become an increasingly popular investment option among institutions and individual investors. Demand for this rental option is growing exponentially among residents who seek a single-family lifestyle, the financial and leasing flexibility of a rental with the amenities and convenience of a professionally managed property.
The U.S. has chronically underbuilt housing since the Great Financial Crisis and needs an additional 4.3 million housing units by 2035 to meet the demand for rental housing, according to the National Multifamily Housing Council. Demand for build-for-rent homes continues to increase with professionally managed communities offering one of the best solutions for the shortage of quality, affordable housing. Institutional ownership and build-for-rent's share of overall U.S. housing stock remains less than 5%, paving the way for long-term, sustained growth for the asset class.
We are thrilled to have Jon Trott and Dave Platter launch the Private Equity Group at Capital Square and focus on build-for-rent homes and non-traditional real estate investments, Build-for-rent is the hottest segment of multifamily investing and plays into the demographic trend where younger residents along with aging baby boomers want to live in a single-family home with the freedom and flexibility of a rental. We believe build-for-rent housing will become one of the most popular strategies in Capital Square's growing investment portfolio,said Louis Rogers, founder and co-chief executive officer.
Prior to joining Capital Square, Trott and Platter led the private equity team of The Amherst Group's build-for-rent division, where they were responsible for capital raising, acquisition sourcing and overall management of the division. Amherst is one of the nation's largest investors and operators of single-family rental homes, with $16 billion in assets under management in over 30 markets.
Previously, Trott was an investment professional with Spear Street Capital, a San Francisco-based real estate private equity firm. He began his career with JPMorgan Chase & Co., one of the globe's leading financial services firms, where he reported to the chief executive officer of asset management and was involved in the execution of key mergers and acquisitions transactions, as well as strategic initiatives. He earned a bachelor's degree from Tufts University and a Master of Business Administration from Harvard Business School.
Prior to his tenure with The Amherst Group, Platter was the co-founder of Southern Creek Capital, a boutique investment manager in the single-family rental and multifamily spaces. He previously worked at the JBG Companies (now JBG SMITH Properties; NYSE: JBGS), where he was responsible for the development of more than $500 million of multifamily and mixed-use properties. His career began in the asset management division of JPMorgan Chase & Co. Platter received a bachelor's degree from The University of Virginia and a Master of Business Administration from Duke University's Fuqua School of Business.
About Capital Square
Capital Square is a national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges, qualified opportunity zone funds for tax deferral and exclusion and a real estate investment trust (REIT). In recent years the company has become an active developer of mixed-use multifamily properties in the southeastern US, with eight current projects totaling approximately 2,000 apartment units with a total development cost in excess of $600 million. Since 2012, Capital Square has completed more than $6 billion in transaction volume. Capital Square's related entities provide a range of services, including due diligence, acquisition, loan sourcing, property/asset management, and disposition, for a growing number of high-net-worth investors, private equity firms, family offices and institutional investors. Since 2017, Capital Square has been recognized by Inc. 5000 as one of the fastest growing companies in the nation for six consecutive years. In 2017, 2018 and 2020, the company was also ranked on Richmond BizSense's list of fastest growing companies. Additionally, Capital Square was listed by Virginia Business on their "Best Places to Work in Virginia" report in 2019 and their "Fantastic 50" reports in 2019 and 2020.
REAL ESTATE ADVICE
Douglas Elliman Realty | July 27, 2022
Douglas Elliman Realty, one of the largest independent residential real estate brokerages in the United States, announced today that it has expanded its footprint in Colorado. With the opening of a new office in Basalt — its fourth office in the state — the company is well positioned to bring its market expertise and unparalleled service to the Mid-Valley communities of Basalt, Carbondale and Glenwood Springs, near Aspen where Douglas Elliman consistently sets record-breaking sales. Located at 310 Market Street, the 800-square-foot office will provide space for both agents and staff members.
With more than 330 active listings, the Mid-Valley is poised to exceed the $943 million in total sales volume generated in 2021. *Statistics provided by Land Title Guarantee and Aspen Glenwood MLS.
"Like the increasing numbers of homebuyers and investors drawn to the region, we see tremendous opportunity in Colorado's Mid-Valley, With the current inventory and growing demand for new developments, we expect to substantially increase our market share."
Scott Durkin, CEO, Douglas Elliman Realty
As a result of remarkable sales activity in nearby Aspen over the past two years, numerous Aspen sellers have taken their financial gains and migrated to the Mid-Valley. And with two luxury country clubs—The Roaring Fork Club in Basalt and Aspen Glen in Carbondale—the region has become a draw for out-of-state buyers, including from Texas.
"Our strong sales in Aspen propelled Douglas Elliman to the number two position in overall market share," said Stephen Kotler, CEO of Douglas Elliman Realty's Western Region. "Our new presence in Basalt combined with our ability to leverage our national and international referral network positions us to replicate that success in the Mid-Valley."
"With the increased demand for new inventory, numerous development projects are currently under construction or scheduled to break ground over the next 12 months," said Edmund Foran, Executive Manager of Sales and Managing Broker, Aspen and Snowmass Village, for Douglas Elliman Realty. "Having a visible presence in the Mid-Valley will enhance our ability to secure new listings."
Some of Elliman's current listings in the Mid-Valley communities include 5616 County Rd 100 in Carbondale listed by Amy Doherty and Julia Herman for $9.8 million, 227 Sage Rim Circle in Basalt listed by Mary Kate Farrell for $9.925 million, 1270 County Road 240 in Glenwood Springs, a 1123 acre ranch on the Colorado River listed by Michael Latousek for $38.647 million and 2561 Frying Pan Road in Basalt, featuring 137 acres and half a mile of frontage of Gold Medal fly fishing on the Frying Pan River for $15.95 million also listed by Michael Latousek.
About Douglas Elliman Inc.
Douglas Elliman Inc. (NYSE: DOUG, "Douglas Elliman") owns Douglas Elliman Realty, LLC, which is one of the largest residential brokerage companies in the United States with operations in New York City, Long Island, Westchester, Connecticut, New Jersey, the Hamptons, Massachusetts, Florida, California, Colorado, Texas and Nevada. In addition, Douglas Elliman sources, uses and invests in early-stage, disruptive property technology ("PropTech") solutions and companies and provides other real estate services, including development marketing, property management and settlement and escrow services in select markets.
AGENT,REAL ESTATE ADVICE
RESAAS Services Inc. | September 09, 2022
RESAAS Services Inc., a technology platform for the real estate industry, today announced the Company has won the PropTech Breakthrough Award: Agent Match Solution of the Year for the second consecutive year.
"RESAAS is proud to be recognized by this prestigious global award for a second consecutive year, showcasing the pedigree of our enterprise-grade technology platform, RESAAS continues to cement its position as the real estate industry's leading solution for Agents and Brokers to secure new business. By focusing on unique real estate data, RESAAS solutions provide unrivalled business value to the global real estate industry."
-RESAAS CEO, Tom Rossiter
The 2022 PropTech Breakthrough Awards received over 1,500 nominations globally. Winners alongside RESAAS include Rocket Mortgage, OpenDoor, Appfolio, and TenantBase. Submissions were judged on several critical characteristics including innovation, functionality, performance, ease of integration and ease of use.
About RESAAS Services Inc.
RESAAS is an award-winning global technology platform for the real estate industry. With over 500,000 real estate agents utilizing RESAAS in 160 countries, RESAAS enables real-time industry communication, delivers new business opportunities and captures unique real estate data. Some of real estate's biggest brands leverage RESAAS to provide business intelligence to real estate brokerages, franchises and associations.
REAL ESTATE INVESTMENT
STORE Capital, GIC and Oak Street | September 17, 2022
STORE Capital Corporation, an internally managed net-lease real estate investment trust (REIT) that invests in Single Tenant Operational Real Estate, and GIC, a global institutional investor in partnership with Oak Street, a Division of Blue Owl, one of the largest net lease investors, today announced that they have entered into a definitive agreement under which GIC and funds managed by Oak Street will acquire STORE Capital in an all-cash transaction valued at approximately $14 billion.
Under the terms of the definitive merger agreement, STORE Capital stockholders will receive $32.25 per share in cash, which represents a premium of 20.4% to STORE Capital’s closing stock price as of September 14, 2022 and a premium of 17.8% to the 90-day volume weighted average stock price through that date.
“This all-cash transaction delivers a meaningful premium that provides immediate and certain value for our stockholders in a challenging market environment, while positioning the Company, its customers and its partners for continued success, I would like to extend my thanks to the entire Board and management team for their hard work during this process, and for their unwavering commitment to acting in the best interests of our stockholders.”
-Tawn Kelly, Chairman of the Board of Directors of STORE Capital
We are pleased to partner with GIC and Oak Street to deliver what we believe is an excellent outcome for our stockholders, This opportunity is an endorsement, by two leading real estate investors with significant access to capital, of the strength of our platform, our experienced leadership team and our disciplined investment approach. We look forward to continuing to grow and support our customers,said Mary Fedewa, President and Chief Executive Officer of STORE Capital.
As one of the largest dedicated U.S. net lease real estate companies in a nearly US$4 trillion-dollar market, STORE Capital is a strong addition to GIC’s diverse portfolio of U.S. real estate investments, We are confident the Company will continue its trajectory of accretive growth by meeting the demand for long-term financing solutions from middle market U.S. companies. We look forward to working closely with STORE Capital and our partners at Oak Street to grow this platform over the long term,said Adam Gallistel, Head of Americas Real Estate, GIC.
As a global long-term investor, GIC seeks to invest in best-in-class businesses with strong long-term growth potential, We are thrilled to lead this investment in STORE Capital given its impressive cash flow profile, long-weighted average lease term and highly diversified portfolio with strong rent coverage,said Lee Kok Sun, Chief Investment Officer of Real Estate, GIC.
We are extremely excited to invest together with a like-minded and thoughtful partner in GIC, We believe the STORE Capital platform complements Oak Street’s exposure to the triple-net industry and our focus on sale-leasebacks. The potential scale of this combination and partnership can deliver one of the most diversified, unique and long dated net lease platforms across the globe,said Marc Zahr, President of Oak Street.
Timing and Approvals
The transaction, which was unanimously approved by the STORE Capital Board of Directors, is expected to close in the first quarter of 2023, subject to approval by STORE Capital’s stockholders and the satisfaction of certain other customary closing conditions. The closing of the transaction is not subject to any financing conditions.
The definitive merger agreement includes a 30-day “go-shop” period that will expire on October 15, 2022, which permits STORE Capital and its representatives to actively solicit and consider alternative acquisition proposals. There can be no assurance that this process will result in a superior proposal, and the Company does not intend to disclose developments with respect to the go-shop process unless and until it determines such disclosure is appropriate or is otherwise required.
Under the terms of the definitive merger agreement, STORE Capital will declare and pay its third quarter cash dividend in the ordinary course. Thereafter, the Company has agreed to suspend payment of any further regular quarterly dividends through the closing.
Subject to and upon completion of the transaction, STORE Capital’s common stock will no longer be listed on the New York Stock Exchange.
Evercore and Goldman Sachs & Co. LLC are acting as financial advisors to STORE Capital, and DLA Piper LLP (US) is acting as its legal counsel. Eastdil Secured Advisors LLC and Citigroup Global Markets Inc. are acting as financial advisors to GIC and Oak Street. Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal counsel to GIC and Kirkland & Ellis LLP is acting as legal counsel to Oak Street.
About STORE Capital
STORE Capital is an internally managed net-lease REIT that is a leader in the acquisition, investment and management of Single Tenant Operational Real Estate, which is its target market and the inspiration for its name. STORE Capital is one of the largest and fastest growing net-lease REITs and owns a large, well-diversified portfolio that consists of investments in more than 3,000 property locations across the United States, substantially all of which are profit centers.
GIC is a leading global investment firm established in 1981 to secure Singapore's financial future. As the manager of Singapore's foreign reserves, GIC takes a long-term, disciplined approach to investing, and is uniquely positioned across a wide range of asset classes and active strategies globally. These include equities, fixed income, real estate, private equity, venture capital, and infrastructure. The firm's long-term approach, multi-asset capabilities, and global connectivity enable them to be an investor of choice. GIC seeks to add meaningful value to its investments. Headquartered in Singapore, GIC has a global talent force of over 1,900 people in 11 key financial cities and has investments in over 40 countries.
About Oak Street, a Division of Blue Owl
Oak Street, a division of Blue Owl, is a real estate investment firm focused on acquiring properties net-leased to investment grade and creditworthy tenants. Oak Street specializes in providing flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. Oak Street has $16.6 billion in assets under management as of June 30, 2022. Blue Owl is a global alternative asset manager with $119 billion in assets under management as of June 30, 2022. Anchored by a strong permanent capital base, the firm deploys private capital across Direct Lending, GP Solutions and Real Estate strategies on behalf of Institutional and Private Wealth clients. Blue Owl's flexible, consultative approach helps position the firm as a partner of choice for businesses seeking capital solutions to support their sustained growth.