Real Estate

Blue Owl Real Estate Exchange LLC (OREX)

OREX is a sponsor of Delaware Statutory Trust (DST) offerings designed to provide Internal Revenue Code (IRC) Section 1031 replacement property. 

Investment in DST interests are suitable for accredited investors.

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About OREX

OREX seeks to provide investors, on a tax deferred basis, the opportunity to potentially exchange an active investment in appreciated real estate for a passive investment into an institutional-quality alternative investment product.

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Investor experience with OREX

OREX intends to offer investors a more efficient long term capital planning opportunity.

Under IRC Section 1031, investors can engage in a tax deferred "like-kind" exchange of appreciated real estate for a passive investment in an OREX offering comprised of a DST that owns a curated portfolio of quality, triple net leased assets.

Two years after the close of an OREX offering, Blue Owl NLT Operating Partnership (Operating Partnership) may exercise a repurchase option (FMV Option) to exchange investors DST interests for the Operating Partnerships units (OP Units) in a
tax deferred transaction under IRC Section 721 or for cash (at the Operating Partnership s sole discretion).2

OREX_Image 1

 

Why OREX?

OREX's 1031 Exchange program features a competitive structure driven by our proprietary sourcing model for favorable triple net leased assets.

Approval Delegation Approval Delegation

Opportunity to defer taxes

OREX offers interests in a DST to 1031 investors seeking to complete "like-kind" exchanges of real estate and defer recognition of capital gains for tax purposes.

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Diversification

Increased diversification and ongoing exposure to high quality portfolio of triple net leased assets.

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Estate planning

Estate planning benefits including simplified divisibility, the opportunity for intermittent liquidity, and the potential to reduce or eliminate taxes altogether through the transfer of OP units to heirs at a "stepped up" basis.

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Income

Receive consistent, competitive distribution payments sourced from long term resilient cash flows.

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Experienced team

Access to competitively priced deals sourced off market managed by experienced triple net lease investment manager.

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Upside potential

Present potential opportunity to capture additional upside as properties increase in value.

Investing in real estate through a credit-oriented strategy

Blue Owl’s net lease real estate strategy takes a different approach from traditional real estate, one focused on creditworthiness of the underlying tenant, which is purpose built for today’s market environment.

Illustrative Investment Characteristics Traditional Real Estate1 Blue Owl Net Lease IG Fixed Income

Primary investment objective

Capital appreciation
Income

Realize capital appreciation from active investment management and asset management

Capital appreciation
Income

Generate current income and, to a lesser extent, capital appreciation

Capital appreciation
Income

Generate current income

Capital appreciation
Income

Return composition

Capital appreciation
Income
Realize capital appreciation from active investment management and asset management ORENT Chart 2
Capital appreciation
Income
Generate current income and, to a lesser extent, capital appreciation ORENT Chart 3-1
Capital appreciation
Income
Generate current income ORENT Chart 4
Capital appreciation
Income
Cashflow
Capital appreciation
Income
Variable cash flows
Capital appreciation
Income
Long-term contractual cash flows with escalators
Capital appreciation
Income
Contractual cash flows
Capital appreciation
Income
Creditworthy underlying tenant/borrower
Capital appreciation
Income
Sometimes
Capital appreciation
Income
Always2
Capital appreciation
Income
Always
Capital appreciation
Income
Volatility of capital appreciation
Capital appreciation
Income
Higher volatility
Capital appreciation
Income
Lower volatility
Capital appreciation
Income
None
Capital appreciation
Income
Liquidity
Capital appreciation
Income
Less liquid
Capital appreciation
Income
More liquid
Capital appreciation
Income
Liquid
Capital appreciation
Income
Tax-efficiency of income
Capital appreciation
Income
High
Capital appreciation
Income
High
Capital appreciation
Income
Low
Capital appreciation
Income
Headline risks
Capital appreciation
Income
  • New supply
  • Growing expenses
  • Asset selection
  • Geographic selection
Capital appreciation
Income
Tenant credit
Capital appreciation
Income
Bond credit
Capital appreciation
Income

The graphic above seeks to examine for illustrative and educational purposes only similar characteristics of different types of investments solutions. This is not a comparison of like products but rather an illustration of different products with similar characteristics.

1.Based on Blue Owl research on open-end core funds. The terms, investment targets and potential risks of each individual core fund offered by non-Blue Owl sponsors may vary and investors should independently evaluate the risks involved

2.Investment grade companies must have “BBB-” rating or higher by S&P. Creditworthy refers to businesses that Blue Owl deems financially sound enough to justify an extension of credit or engage in a lease agreement. Tenants are creditworthy or investment grade at acquisition.

Performance

ORENT is designed to generate long-term resilient cash flows by acquiring high quality, mission-critical assets.

The portfolio may outperform the broader real estate market because the portfolio contains properties bought at competitive cap rates in today’s market environment.

Total net return7

Share Class 1-month 3-month YTD ITD
Class I 0.60% 2.08% 6.67% 10.34%

Historical net asset value per share

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2023 $10.18 $10.36 $10.19 $10.19 $10.21 $10.32 $10.32 $10.34 $10.36 $10.36 - -
2022 - - - - - - - $10.00 $10.27 $10.27 $10.27 $10.28

Historical performance

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2023 -0.37% 2.28% -1.06% 0.57% 0.75% 1.70% 0.59% 0.70% 0.77% 0.60% - -
2022 - - - - - - - - 3.29% 0.54% 0.55% 0.70%

Historical distribution per share

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2023 $0.0583 $0.0583 $0.0583 $0.0583 $0.0583 $0.0583 $0.0583 $0.0583 $0.0583 $0.0583 - -
2022 - - - - - - - - $0.0583 $0.0583 $0.0583 $0.0583

Total net return7

Share Class 1-month 3-month YTD ITD
Class D (no upfront placement fee) 0.58% 2.01% 6.41% 8.57%
Class D (with upfront placement fee) -0.91% 0.50% 4.84% 7.19%

Historical net asset value per share

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2023 $10.02 $10.20 $10.02 $10.02 $10.04 $10.15 $10.15 $10.16 $10.18 $10.19 - -
2022 - - - - - - - $10.00 $10.27 $10.07 $10.12 $10.12

Historical performance

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2023 (no upfront placement fee) -0.37% 2.34% -1.19% 0.50% 0.73% 1.67% 0.59% 0.67% 0.75% 0.58% - -
2023 (with upfront placement fee) -1.84% 0.83% -2.65% -0.98% -0.76% 0.17% -0.90% -0.81% -0.74% -0.91% - -
2022 (no upfront placement fee) - - - - - - - - 3.26% -1.42% 1.12% 0.49%
2022 (with upfront placement fee) - - - - - - - - 1.73% -2.88% -0.38% -1.00%

Historical distribution per share

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2023 $0.0562 $0.0564 $0.0491 $0.0562 $0.0563 $0.0562 $0.0563 $0.0562 $0.0562 $0.0562 -
2022 - - - - - - - - $0.0563 $0.0562 $0.0563 $0.0562

Total net return7

Share Class 1-month 3-month YTD ITD
Class S (no upfront placement fee) 0.52% 1.86% 5.83% 8.86%
Class S (with upfront placement fee) -2.88% -1.59% 2.25% 5.70%

Historical net asset value per share

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2023 $10.13 $10.30 $10.13 $10.13 $10.15 $10.26 $10.26 $10.27 $10.29 $10.30 - -
2022 - - - - - - - $10.00 $10.27 $10.22 $10.21 $10.23

Historical performance

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2023 (no upfront placement fee) -0.45% 2.19% -1.17% 0.48% 0.68% 1.63% 0.50% 0.62% 0.70% 0.52% - -
2023 (with upfront placement fee) -3.81% -1.26% -4.51% -2.91% -2.73% -1.81% -2.90% -2.78% -2.71% -2.88% - -
2022 (no upfront placement fee) - - - - - - - - 3.21% 0.00% 0.46% 0.63%
2022 (with upfront placement fee) - - - - - - - - -0.28% -3.38% -2.94% -2.77%

Historical distribution per share

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2023 $0.0510 $0.0517 $0.0509 $0.0513 $0.0510 $0.0512 $0.0509 $0.0509 $0.0512 $0.0509 - -
2022 - - - - - - - - $0.0513 $0.0509 $0.0512 $0.0510

Geographic Diversification11,12

  • Southeast 26.1%
  • West 24.1%
  • Midwest 19.2%
  • International 18.4%
  • Southwest 10.4%
  • Northeast 1.7%

Property Type11

  • Industrial 55.7%
  • Essential Retail 18.6%
  • STORE 12.2%
  • Land 6.4%
  • Fully-occupied HQ 5.7%
  • Loan 1.5%

Tenant Diversification11

  • Amazon 29.5%
  • STORE 12.2%
  • Maverick Gaming 5.2%
  • Bally's 5.1%
  • Save Mart Supermarkets 5%
  • Tenneco Inc. 4.9%
  • QVC 4.7%
  • Cracker Barrel 4.5%
  • Enbridge / McDermott 4.4%
  • Other 24.4%

Top 10 holdings

Tenant # of properties Fair value as of Oct-23 Type Annual escalations Weighted avg lease term
Cell label Amazon Cell label 5 Cell label $1,240,413 Cell label Industrial Cell label 1.0% Cell label 16 years
Cell label STORE13 Cell label N/A Cell label $510,792 Cell label Industrial / Retail Cell label 1.9% Cell label 14 years
Cell label Maverick Gaming Cell label 11 Cell label $217,687 Cell label Retail Cell label 2.5% Cell label 39 years
Cell label Bally's15 Cell label 1 Cell label $215,380 Cell label Land Cell label CPI-Linked Cell label 98 years
Cell label Save Mart Supermarkets Cell label 12 Cell label $212,005 Cell label Industrial / Retail Cell label 1.8% Cell label 13 years
Cell label Tenneco Inc.14 Cell label 11 Cell label $207,643 Cell label Industrial Cell label 3.0% Cell label 19 years
QVC 2 $199,069 Industrial 2.0% 19 years
Cracker Barrel 53 $188,621 Retail 1.0% 17 years
Enbridge / McDermott 1 $184,405 Office 2.5% 13 years
Magna International 1 $173,340 Industrial 1.3% 11 years

Case studies

tenneco

Tenneco (Chicago)

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walgreens

Walgreens (U.S.)

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QVC

QVC (UK & Germany)

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Frequently asked questions

Need to contact us? Get in touch with our sales team.

Endnotes

1. Accredited investors as defined in Rule 501(a) of Regulation D promulgated under the Securities Act of 1933, as amended).

2. As defined in Rule 501(a) of Regulation D promulgated under the Securities Act of 1933, as amended.

3. The FMV Option is comprised of two separate potential options: (i) the “FMV Purchase Option” and (ii) the “FMV Real Estate Option.”  Both options are exercisable for a period of one year beginning on the date on which all DST investors in a particular offering have held their DST interests for two years. There is no guarantee that either option will be exercised, which exercise is to be made in the Operating Partnership's (and/or its affiliates’) sole discretion. Blue Owl, its affiliates and its employees are not in the business of providing tax or legal advice. Investors should seek advice based on their particular circumstances from an independent tax or legal advisor.

4. In addition to other requirements, investors must purchase a replacement property of equal or greater value and invest the entire proceeds from the sale of the relinquished property in order to maximally defer their capital gains taxes. Some costs, such as certain closing costs, may constitute "taxable boot" in certain circumstances. Each potential investor is strongly advised to seek independent tax advice from qualified professionals.

5. Within the rules of IRC Section 1031 and in accordance with Revenue Ruling 2004-86 and the fixed investment trust rules under Treasury Regulations Section 301.7701-4(c). OREX intends to structure its offerings such that its DSTs will comply with these requirements and afford investors the opportunity to use OREX-sponsored DST shares as qualifying replacement property under IRC Section 1031.

Important information

The material presented is proprietary information regarding Blue Owl, its affiliates and investment program, funds sponsored by Blue Owl, including the Blue Owl Credit, GP Strategic Capital Funds and the Real Estate Funds (collectively the “Blue Owl Funds”) as well as investment held by the Blue Owl Funds. 

This webpage is for informational purposes only and is not an offer or a solicitation to sell or subscribe for an interest in a DST and does not constitute investment, legal, regulatory, business, tax, financial, accounting, or other advice or a recommendation regarding any securities of Blue Owl, of any fund or vehicle managed by Blue Owl, or of any other issuer of securities. Only a definitive offering webpage can make such an offer. Neither the Securities and Exchange Commission, the Attorney General of the State of New York nor any state securities commission has approved or disapproved of these securities or determined if the applicable Memorandum is truthful or complete. Any representation to the contrary is a criminal offense. 

The views expressed and, except as otherwise indicated, the information provided are as of the report date and are subject to change, update, revision, verification, and amendment, materially or otherwise, without notice, as market or other conditions change. Since these conditions can change frequently, there can be no assurance that the trends described herein will continue or that any forecasts are accurate. In addition, certain of the statements contained in this webpage may be statements of future expectations and other forward-looking statements that are based on the current views and assumptions of Blue Owl and involve known and unknown risks and uncertainties (including those discussed below) that could cause actual results, performance, or events to differ materially from those expressed or implied in such statements. These statements may be forward-looking by reason of context or identified by words such as “may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, potential or continue” and other similar expressions. Neither Blue Owl, its affiliates, nor any of Blue Owl’s or its affiliates' respective advisers, members, directors, officers, partners, agents, representatives or employees or any other person (collectively the “Blue Owl Entities”) is under any obligation to update or keep current the information contained in this webpage.

This webpage contains case studies and other discussions of selected investments made by the Blue Owl Funds. These discussions provide descriptions and certain key aspects of such investments and are presented for informational purposes only and are intended to illustrate Blue Owl’s sourcing experience and the profile and types of investments and investment strategies which may be pursued by Blue Owl. These types of investments are not necessarily indicative of the types of investments that Blue Owl may seek to make, or be able to make, in the future. Any future investment vehicle that Blue Owl may sponsor or advise in the future, may pursue and consummate different types of investments in different concentrations, than those selected for illustrative purposes on this webpage. Further, references to investments included in these case studies are presented to illustrate Blue Owl’s investment processes only and should not be construed as a recommendation of any particular investment. Past performance of any investment described in these illustrative case studies is not indicative of future results that may be obtained by any Blue Owl Fund, and there can be no assurance that any such fund or other vehicle will achieve comparable results.
 
This webpage contains information from third party sources which Blue Owl has not verified. No representation or warranty, express or implied, is given by or on behalf of the Blue Owl Entities as to the accuracy, fairness, correctness or completeness of the information or opinions contained on this webpage and no liability whatsoever (in negligence or otherwise) is accepted by the Blue Owl Entities for any loss howsoever arising, directly or indirectly, from any use of this webpage or its contents, or otherwise arising in connection therewith.

All investments are subject to risk, including the loss of the principal amount invested. These risks may include limited operating history, uncertain distributions, inconsistent valuation of the portfolio, changing interest rates, leveraging of assets, reliance on the investment advisor, potential conflicts of interest, payment of substantial fees to the investment advisor and the dealer manager, potential illiquidity, and liquidation at more or less than the original amount invested. Diversification will not guarantee profitability or protection against loss. Performance may be volatile, and the NAV may fluctuate. See "Risk Factors" in the applicable Memorandum for other considerations.

Performance Information: Where performance returns have been included in this webpage, Blue Owl has included herein important information relating to the calculation of these returns as well as other pertinent performance related definitions.

Persons that may be interested in a potential investment must receive and carefully review a final private placement memorandum, as well as complete a subscription webpage that contains additional information, representations and warranties, prior to investing. Blue Owl and its affiliates expressly disclaim any liability to the full extent permitted under applicable law arising from reliance by any person on the information contained in this webpage.

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