- Business
- Pacific Oak Strategic Opportunity REIT, Inc. (PCOK) is a non-traded real estate investment trust that invests in and manages a diversified portfolio of opportunistic real estate, real estate-related loans, real estate-related securities, and other real estate-related investments; its core assets include approximately nine office properties totaling around 2.8 million to 3.2 million rentable square feet primarily in U.S. markets such as Manhattan, Austin, Las Vegas, and Oakland, a residential home portfolio of over 2,000 single-family homes, multifamily apartment properties with several hundred units, a 196-room hotel property, undeveloped land holdings with hundreds of developable acres, and an office/retail development property, operating through three main segments of strategic opportunistic properties and real estate-related investments, residential homes, and hotels. Founded on October 8, 2008 and headquartered in Los Angeles, California, with external advisor Pacific Oak Capital Advisors, LLC, the company targets attractive total returns for stockholders by acquiring discounted debt, non-performing loans, and distressed equity assets amid commercial real estate market dislocations, with geographic operations focused on the United States. In recent developments, the REIT, formerly known as KBS Strategic Opportunity REIT, completed a merger with Pacific Oak Strategic Opportunity REIT II in October 2020 to form a larger entity; it borrowed $8 million from its advisor in early 2025 at 12% interest amid high leverage of approximately 87% debt-to-gross assets and over $500 million in near-term debt maturities, sold portions of the profitable Park Highlands undeveloped land realizing $223.1 million in gross proceeds from acquisitions dating back to 2011-2013, and in November 2025 hired Robert A. Stanger & Co. to explore strategic alternatives including potential sales of up to 16 properties while facing Israeli bondholder legal threats over alleged liquidity misrepresentations, substantial doubt about going concern status, and significant losses including a $127 million net loss and $45.9 million funds from operations deficit in recent quarters.