Pacific Oak subsidiaries enter $188 million restated secured facility

By Marisa Wong

Los Angeles, Sept. 1 – Pacific Oak Strategic Opportunity REIT, Inc.’s indirect wholly owned subsidiaries 1180 Raymond Urban Renewal, LLC, Pacific Oak SOR Austin Suburban Portfolio, LLC, Pacific Oak SOR II Oakland City Center, LLC and Pacific Oak SOR Marquette Plaza, LLC entered into an amended and restated loan agreement on Aug. 28 with Bank of America, NA as administrative agent for a $188 million secured facility, according to an 8-K filing with the Securities and Exchange Commission.

The facility is secured by four properties owned by the borrowers.

The facility amends and restates the borrowers’ existing loan agreement by increasing the aggregate commitment to $188 million from $60.5 million and making an additional advance in the amount of $127.5 million.

The amendment also joins the Raymond borrower, Austin borrower and Oakland borrower as co-borrowers; extends the term of the existing Marquette loan; accepts the three properties owned by the Raymond borrower, the Austin borrower and the Oakland Borrower as additional collateral; and making some other changes.

The additional advance of $127.5 million is to be used to repay the existing loans to the Raymond borrower, the Austin borrower and the Oakland borrower. There are no net proceeds from this refinance.

The facility has an initial scheduled maturity date of Sept. 1, 2026, followed by two one-year extension options upon the satisfaction of certain conditions.

The facility may be prepaid in full at any time without prepayment premium.

Borrowings bear interest at one-month BSBY plus 275 basis points.

In addition to the interest due monthly, the facility provides for monthly amortization payments of $700,000, as well as two specified principal payments on the loan. On or before Dec. 1, 2023, a $10 million paydown is due, followed by an additional $10 million paydown due on or before Dec. 1, 2024. In addition, at closing the borrower remitted about $10 million to pay down the facility.

The facility is secured by first priority mortgages, deeds of trust or similar security instruments, assignments of leases and rents and security interests in properties owned through the borrowers.

Another indirect wholly owned subsidiary of Pacific Oak, Pacific Oak SOR Properties, LLC, is guarantor.

The real estate investment trust is based in Los Angeles.

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