STORE Capital Launches as New Private REIT

The firm was formed to invest in single-tenant properties including chain restaurants, supermarkets, drugstores and other retail, service and distribution facilities.

May 27, 2011
By Allison Landa, News Editor

Courtesy Flickr Creative Commons user marioanima

STORE Capital has begun its life as a REIT. It was formed to invest in single-tenant properties including chain restaurants, supermarkets, drugstores and other retail, service and distribution facilities. STORE stands for Single Tenant Operational Real Estate.

The REIT has launched a $500 million private equity raise and has already secured a $400 million commitment from OCM STR Holdings L.P., a subsidiary of Oaktree Capital Management L.P. Proceeds from the equity raise will fund initial real estate investments.

The firm was founded by Morton Fleischer and Christopher Volk, whose prior experience includes the formation and growth of Spirit Finance as well as Franchise Finance Corp. of America. Fleischer will serve as STORE’s chairman, while Volk will oversee operations as CEO. Over the course of 30 years, the two have invested nearly $10 billion in more than 7,000 single-tenant operational real estate assets, raised approximately $3 billion in investor capital and paid more than $5 billion in investor distributions.

Other members of the STORE team include executive vice president & CFO Catherine Long, executive vice president of portfolio management Michael Zieg and executive vice president of operations Michael Bennett.

According to Volk, STORE is poised to take advantage of opportunities for offering long-term capital for single-tenant operational real estate assets.