Pacific Oak REIT Subsidiaries Face $80M Default Demand
Pacific Oak Strategic Opportunity REIT, Inc. announced that its indirect subsidiaries received demand letters from Whitehawk Capital Partners, LP, alleging events of default under a Credit Agreement and demanding immediate payment of all obligations, totaling an aggregate principal amount of $80,000,000 plus accrued default interest and an exit fee. Whitehawk claims two events of default occurred in August and December 2025, leading to the acceleration of obligations by February 8, 2026. Whitehawk also filed a lawsuit on May 19, 2026, seeking to enjoin subsidiaries from impairing collateral property in North Las Vegas, Nevada. The Company's legal counsel is reviewing Whitehawk's assertions and claims, reserving all rights and defenses.
Key Highlights
- Whitehawk demanded immediate payment of $80,000,000 from Pacific Oak REIT subsidiaries.
- Demand stems from alleged events of default under a Credit Agreement dated July 29, 2025.
- First alleged default occurred August 19, 2025, due to a restrictive agreement.
- Second alleged default arose December 26, 2025, from an insolvency proceeding against BVI.
- All obligations became due by February 8, 2026, with default interest from August 19, 2025.
- Whitehawk filed a lawsuit May 19, 2026, to prevent impairment of collateral property.
- Pacific Oak REIT's legal counsel is reviewing Whitehawk's assertions and claims.
Price Impact
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