Loan & DebtMay 14, 2026, 05:32 PM
Pacific Oak Secures $216M Loan; Amends Management Pacts
AI Summary
Pacific Oak Strategic Opportunity REIT, Inc. subsidiaries secured a new loan agreement for up to $216 million, fully funded on May 8, 2026. The loan, bearing interest at one-month SOFR plus 4.75% (7.75% floor), replaces existing financing and provides working capital, including a $10 million interest reserve. The company also amended agreements with Brian Ragsdale and R2 Advisors, LLC to reduce costs and enhance flexibility, with R2 Advisors' monthly fee set at $10,000.
Key Highlights
- Secured a loan agreement for up to $216 million, fully funded on May 8, 2026.
- Loan proceeds used to replace existing financing and fund a $10 million interest reserve.
- Interest rate is one-month SOFR plus 4.75% per annum, with a 7.75% floor.
- Initial maturity date is August 8, 2027, with two six-month extension options.
- Loan includes a 1.50% origination fee and a 1.25% exit fee.
- Amended R2 Advisors management agreement to $10,000 per month.
- Requires sale of at least 150 properties in first 6 months, then 100 properties every 3 months.