Pacific Oak Strategic Opportunity REIT Secures $8 Million Loan from Advisor
Short-term financing agreement carries 12% annual interest rate with potential extension option.
March 05, 2025
Pacific Oak secures $8 million in short-term financing
Pacific Oak Strategic Opportunity REIT, Inc. has locked in an $8 million loan from its advisor, Pacific Oak Capital Advisors, LLC. The financing, secured through its operating partnership, comes with a 12% annual interest rate and a three-month maturity. If no default occurs, the company can extend the term by another 90 days.
Interest payments begin on April 1, 2025. If the company defaults, the interest rate increases to 15% per year. The agreement also includes standard contractual provisions covering representations, warranties, and default remedies.
Loan structure and strategic flexibility
This move ensures Pacific Oak has access to immediate capital under terms negotiated within its existing advisory structure. While the company hasn’t disclosed how it plans to use the funds, the loan provides flexibility to address operational needs, manage assets, or pursue other financial objectives.
By structuring the loan with an extension option, Pacific Oak has built in an extra layer of adaptability. The initial maturity date is set for May 27, 2025, but the company retains the ability to extend if needed, provided there are no defaults.
With a short window to execute its plans or evaluate refinancing options, Pacific Oak has positioned itself to act decisively. Whether the capital is directed toward optimizing its portfolio or meeting near-term obligations, the structure of the deal ensures the company maintains financial flexibility.
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