Pacific Oak previously expressed “substantial doubt” about its ability to continue as a going concern, according to its latest quarterly report on Form 10-Q filed with the U.S. Securities and Exchange Commission (“SEC”) for the quarter ended June 30, 2025.  Also earlier this year, Pacific Oak’s longtime Chief Financial Officer, Michael A. Bender, resigned.

In a more recent SEC filing in November 2025, Pacific Oak described a “difficult financial situation” and reported operating losses of $117.2 million on sales of only $26.56 million.  Pacific Oak also announced that it has initiated a formal review of strategic alternatives. The REIT has significant major debt maturities in the next year, meaning that a large portion of its loans have come due and will have to either be refinanced or paid off.  According to recent reports, Pacific Oak faces more than $512.8 million in debt obligations coming due within the next year, including debts related to bond that it issued that were denominated in Israel shekels.

Pacific Oak has also publicly stated that in October 2025, its Board of Directors formed a special committee of independent directors to evaluate all available strategic options- which could include a merger, recapitalization, listing on a stock exchange, or liquidation.  Pacific Oak has retained investment banking firm Robert A. Stanger & Company Inc. to advise on the process.  

Non-traded REITs like Pacific Oak are generally illiquid investments.  Unlike traditional stocks and mutual funds, non-traded REITs do not trade on a national securities exchange.  Many uninitiated investors in non-traded REITs have come to learn too late that their ability to exit their investment position is limited.  Typically, investors in non-traded REITs can only exit their investment through redemption directly with the sponsor on a limited basis, and often at a disadvantageous price, or through sales in a limited secondary market.   As of April 2025, Pacific Oak’s net asset value or “NAV” per share was reported at $5.72, down from $8.03 in September 2023 and $10.50 in September 2022. This NAV reflects a 23.5% decline from 2022 to 2023 and a further slide into 2025. In online secondary market platform trading, shares have reportedly been traded as low as between $0.48 and $0.75 per share.

Investors who wish to discuss a possible claim concerning Pacific Oak or another alternative investment may contact a securities arbitration lawyer at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or via email at newcases@investorlawyers.net for a no-cost, confidential consultation.  Attorneys at the firm are admitted in New York, Wisconsin and various federal courts around the country, and handle cases nationwide (in cooperation with attorneys located in those states if required by applicable rules). 

This article is intended as ATTORNEY ADVERTISING and is not an official announcement.

Pacific Oak has expressed “substantial doubt” about its ability to continue as a going concern, according to its latest quarterly report on Form 10-Q filed with the U.S. Securities and Exchange Commission (“SEC”) for the quarter ended June 30, 2025.   Pacific Oak faces multiple challenges including debt maturities and a difficult commercial real estate market.  

 Pacific Oak closed its initial public offering in 2012, and was designed to capitalize on the “dislocation, lack of liquidity, and government intervention” that exists in commercial real estate markets, according to its website.  In 2020, Pacific Oak Strategic Opportunity REIT II shareholders approved a merger into Pacific Oak.

Pacific Oak’s real estate portfolio’s value was written down in the aggregate by $52 million during the second quarter as a direct result of “declines in market conditions and projected cash flows.”  The REIT’s portfolio remains highly concentrated in California and Tennessee, which the company noted makes it “particularly susceptible to adverse economic developments” in those region’s real estate markets. As of the end of the quarter, California and Tennessee properties accounted for 11.2% or $113.3 million; and 10.1% or $102.5 million of the company’s total assets, respectively.  As of June 30, 2025,  the company’s portfolio reportedly consisted of eight office complexes (64% occupied), a residential home portfolio of 2,078 homes (92% occupied), one apartment property (90% occupied), a hotel, and several undeveloped land and development properties. The company also confirmed it was compliant with all debt covenants as of its previous report on Dec. 31, 2024.

Earlier this year, Michael A. Bender resigned from his positions as Pacific Oak’s vice president, chief financial officer, treasurer, and secretary of the company effective, April 17, 2025.  In March 2025, the online publication AltsWire reported that Pacific Oak REIT had borrowed $8 million from its advisor. The loan was increased by $2 million on June 26, 2025.

 Non-traded REITs like Pacific Oak are generally illiquid investments.  Unlike traditional stocks and mutual funds, non-traded REITs do not trade on a national securities exchange.  Many uninitiated investors in non-traded REITs have come to learn too late that their ability to exit their investment position is limited.  Typically, investors in non-traded REITs can only exit their investment through redemption directly with the sponsor on a limited basis, and often at a disadvantageous price, or through sales in a limited secondary market.   As of April 2025, Pacific Oak’s net asset value or “NAV” per share was reported at $5.72, down from $8.03 in September 2023 and $10.50 in September 2022. This NAV reflects a 23.5% decline from 2022 to 2023 and a further slide into 2025. In online secondary market platform trading, shares have reportedly been traded as low as $2.50 per share.

Investors who wish to discuss a possible claim concerning Pacific Oak or another alternative investment may contact a securities arbitration lawyer at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or via email at newcases@investorlawyers.net for a no-cost, confidential consultation.  Attorneys at the firm are admitted in New York, Wisconsin and various federal courts around the country, and handle cases nationwide (in cooperation with attorneys located in those states if required by applicable rules). 

This article is intended as ATTORNEY ADVERTISING and is not an official announcement.