Pacific Oak Strategic Opportunity REIT (PCOK) Company Report

Pacific Oak Strategic Opportunity REIT, Inc. (PCOK) and its Operating Partnership received a notice of default on January 29, 2026, from Pacific Oak Capital Advisors, LLC (POCA), its predecessor advisor.
The notice concerns a $10.0 million loan dated July 14, 2025, alleging that no interest has been paid, leading to a default where all principal and interest are now due, with default interest accruing.
The Company is investigating the nature of payments made to POCA since the loan's inception and reserves all rights to dispute the alleged default.

2 days ago

Pacific Oak Strategic Opportunity REIT, Inc. to pursue liquidation plan and announces leadership changes

PCOK

CEO Change

CFO Change

Management Change

Pacific Oak Strategic Opportunity REIT, Inc. (PCOK) announced that its Special Committee unanimously agreed on January 12, 2026, to pursue a plan of liquidation, subject to Board and stockholder approval.
Effective January 23, 2026, Brian Ragsdale was appointed President, Chief Executive Officer, and Chief Financial Officer, replacing Peter McMillan and Keith D. Hall, who were removed from their positions.
The Company is terminating its Advisory Agreement with Pacific Oak Capital Advisors, LLC (POCA), effective January 31, 2026, and its subsidiary, BVI, has engaged Westdale Asset Management, Ltd. and R2 Advisors, LLC for asset management and management services, respectively.
The BVI has agreed to provide the Company with up to $905,000 in funding over the next three months to support working capital, compliance, and the liquidation plan.

Jan 23, 2026, 9:54 PM

Pacific Oak SOR (BVI) Holdings Reports Q3 2025 Financial Results and Covenant Breaches

PCOK

Earnings

Legal Proceedings

Demand Weakening

As of September 30, 2025, Pacific Oak SOR (BVI) Holdings, Ltd. reported a working capital shortfall of $298.2 million and was non-compliant with key covenants related to its Series B and D bonds, which were subsequently downgraded by S&P Global Ratings Maalot Ltd.. This downgrade also triggered an event of default on the $80.0 million WhiteHawk Loan.
The company recorded a net loss of $(311,090) thousand for the nine months ended September 30, 2025, and a net loss of $(152,939) thousand for the three months ended September 30, 2025. These losses include fair value adjustments of investment properties totaling $(208,801) thousand for the nine-month period and $(97,591) thousand for the three-month period.
Bondholders rejected transactions for the sale of 1,799 residential homes and 281 residential homes in Michigan on September 28, 2025, and had previously objected to the company entering into the WhiteHawk Loan.
The company reclassified the Richardson office and Crown Pointe investment properties as held for sale, with the Crown Pointe sale completed in November 2025 for $38.0 million, yielding no cash flow to the company, and the Richardson sale expected to yield $5.2 million in net cash flow.

Dec 1, 2025, 11:39 PM

Pacific Oak SOR (BVI) Holdings, Ltd. Faces Going Concern Doubts Amidst Covenant Breaches and Asset Sales

PCOK

Debt Issuance

Legal Proceedings

Demand Weakening

Pacific Oak SOR (BVI) Holdings, Ltd. (PCOK) reported a working capital shortfall of $490.1 million as of June 30, 2025, and its management and Board of Directors have concluded there are significant doubts regarding the Company's ability to continue as a going concern.
As of June 30, 2025, PCOK was non-compliant with key covenants for its Series B and D bonds, including minimum consolidated equity ($366.1 million vs. required $475 million or $450 million) and Net Adjusted Financial Debt to Net Adjusted Cap (75.2% vs. limit of 75%). This non-compliance could trigger the bonds becoming due and payable if it persists for two consecutive quarters.
In July 2025, PCOK secured an $80.0 million loan, primarily used to redeem Series C bonds, but this transaction led to objections and alleged breaches of duty from the Trustee representing Series B and D bondholders, with ongoing negotiations and a standstill agreement signed on August 19, 2025.
The Company is pursuing asset sales, including a Purchase and Sale Agreement for Richardson office and land for $30.0 million and a non-binding Letter of Intent for 1,799 residential homes for $230.0 million, the latter at approximately a 24% discount to carrying amounts.

Sep 2, 2025, 7:43 PM

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