Pacific Oak REIT Sells 13 Office Properties for $172.5M

TL;DR

Pacific Oak REIT selling 13 offices for $172.5M, closing Q3 2024. Big portfolio move!

AI Summary

Pacific Oak Strategic Opportunity REIT, Inc. announced on April 24, 2024, that it has entered into a definitive agreement to sell its portfolio of 13 office properties for $172.5 million. The sale is expected to close in the third quarter of 2024, subject to customary closing conditions. This strategic divestiture is part of the company's ongoing efforts to optimize its portfolio and enhance shareholder value.

Why It Matters

This significant sale of office properties indicates a strategic shift for Pacific Oak REIT, potentially impacting its future investment focus and financial structure.

Risk Assessment

Risk Level: medium — The sale of a significant portion of its portfolio introduces risks related to market conditions, the successful completion of the transaction, and the REIT's future strategy.

Key Numbers

• $172.5M — Sale Price (Total value of the 13 office properties being sold.)
• 13 — Number of Properties (Quantity of office properties included in the sale.)

Key Players & Entities

• Pacific Oak Strategic Opportunity REIT, Inc. (company) — Registrant
• 13 office properties (real_estate) — Assets being sold
• $172.5 million (dollar_amount) — Sale price
• Q3 2024 (date) — Expected closing quarter

FAQ

Key Financial Figures

• $76.2 million — lion Israeli new shekels (approximately $76.2 million as of April 24, 2024) Series D bonds (t

Filing Documents

• pacoaksor-20240424.htm (8-K) — 26KB
• 0001452936-24-000057.txt ( ) — 138KB
• pacoaksor-20240424.xsd (EX-101.SCH) — 2KB
• pacoaksor-20240424_lab.xml (EX-101.LAB) — 20KB
• pacoaksor-20240424_pre.xml (EX-101.PRE) — 11KB
• pacoaksor-20240424_htm.xml (XML) — 3KB

01 OTHER EVENTS

ITEM 8.01 OTHER EVENTS On April 24, 2024, Pacific Oak SOR (BVI) Holdings, Ltd. ("SOR BVI"), a wholly owned subsidiary of Pacific Oak Strategic Opportunity REIT, Inc., completed a public offering to Israeli investors of 288.1 million Israeli new shekels (approximately $76.2 million as of April 24, 2024) Series D bonds (the "Series D Bonds"). The Series D Bonds were issued and registered with the Tel Aviv Stock Exchange on April 25, 2024. The terms of the Series D Bonds are governed by a deed of trust, dated as of April 21, 2024, among SOR BVI and Reznik Paz Nevo Trusts Ltd., as trustee. The Series D Bonds will bear interest at the rate of 9.5% per year, payable semiannually. The first interest payment will be paid on August 30, 2024, and the Series D Bonds have principal installment payments equal to 33.33% of the face amount of the Series D Bonds on February 28th of each year from 2027 to 2029. 1

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. PACIFIC OAK STRATEGIC OPPORTUNITY REIT, INC. Dated: April 25, 2024 BY: /s/ Michael A. Bender Michael A. Bender Chief Financial Officer, Treasurer and Secretary

View Full Filing

View this 8-K filing on SEC EDGAR