Default notice hits Pacific Oak (PCOK) on $10.0M advisor loan

Rhea-AI Filing Summary

Pacific Oak Strategic Opportunity REIT, Inc. reported that it and its operating partnership received a default notice from former advisor Pacific Oak Capital Advisors, LLC regarding a $10.0 million related party loan dated July 14, 2025. The advisor’s notice alleges no interest has been paid, claims the loan is in default with all principal and interest now due, and states that default interest is accruing and more collateral is required under a pledge agreement. The company is reviewing payments made to the advisor since the loan was issued and expressly reserves its rights to dispute that any default has occurred.

Positive

• None.

Negative

• Default notice on $10.0M related party loan alleging unpaid interest, immediate due-and-payable status, default interest accrual, and additional collateral needs may pressure liquidity and financing flexibility if enforced.

Insights

Credit & REIT capital structure analyst

Notice of default on a $10.0M related party loan raises refinancing and liquidity questions.

Pacific Oak Strategic Opportunity REIT, Inc. received a default notice from its former advisor on a $10.0 million loan to its operating partnership. The advisor alleges unpaid interest, declares the loan in default, and demands immediate payment of principal and interest plus default interest and additional collateral.

This situation concentrates risk in a single related-party creditor rather than traditional lenders. Default interest and collateral demands can increase effective financing costs and constrain balance sheet flexibility if enforced, especially within a real estate investment trust structure reliant on stable funding.

The company is investigating past payments to the advisor and explicitly reserves the right to dispute any default. How this disagreement is resolved, including any repayment, refinancing, or collateral adjustments, will depend on the loan documents and subsequent developments beyond the information provided here.

8-K Event Classification

Item 2.04 — Triggering Events That Accelerate or Increase a Direct Financial Obligation

1 item

Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation Financial

An event triggered acceleration or increase of an existing financial obligation, such as a debt covenant breach.

Understanding 8-K Material Events →

FALSE000145293600014529362026-01-292026-01-29

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________

FORM 8-K

__________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 29, 2026

PACIFIC OAK STRATEGIC OPPORTUNITY REIT, INC.

(Exact name of registrant specified in its charter)

______________________________________________________

Maryland

000-54382

26-3842535

(State or other jurisdiction of incorporation or organization)

(Commission File Number)

(IRS Employer Identification No.)

3200 Park Center Dr., Suite 800

Costa Mesa, California 92626

(Address of principal executive offices)

Registrant’s telephone number, including area code: (866) 722-6257

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
None			N/A			N/A

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 2.04 Triggering Events That Accelerate or Increase Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.

Legacy Advisor Bridge Loan Notice of Default

On January 29, 2026, Pacific Oak Strategic Opportunity REIT, Inc. (the “Company”) and Pacific Oak Strategic Opportunity Limited Partnership (the “Operating Partnership”), a wholly owned subsidiary of the Company, received a notice of default and reservation of rights letter (the “Notice”) from Pacific Oak Capital Advisors, LLC (“POCA”), the Company’s predecessor advisor through January 31, 2026. The Notice relates to that certain loan from POCA to the Operating Partnership in the principal amount of $10.0 million dated July 14, 2025, as previously disclosed in the Company’s filings (the “Related Party Loan”). The Notice alleges, among other things, that no interest has ever been paid on the Related Party Loan, and as a result the loan is in default and that all principal and interest is now due. The Notice also alleges that default interest is now accruing and that more collateral is required under the related pledge agreement.

The Company is investigating the nature of the payments made by the Company and the Operating Partnership to POCA since the making of the Related Party Loan. The Company reserves all rights to dispute that the loan is in default.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

						PACIFIC OAK STRATEGIC OPPORTUNITY REIT, INC.
Dated: February 4, 2026						BY:			/S/ BRIAN RAGSDALE
									Brian Ragsdale
									President, Chief Executive Officer and Chief Financial Officer
									(principal executive officer)

FAQ

What event did Pacific Oak Strategic Opportunity REIT (PCOK) disclose in this 8-K?

Pacific Oak Strategic Opportunity REIT disclosed receiving a default notice from its former advisor on a $10.0 million loan. The advisor claims the loan is in default, seeks all principal and interest, and asserts default interest is accruing with more collateral required.

How large is the loan at issue for Pacific Oak Strategic Opportunity REIT (PCOK)?

The notice of default concerns a related party loan with a principal amount of $10.0 million. The loan was made by Pacific Oak Capital Advisors, LLC to the operating partnership on July 14, 2025, as previously described in the company’s filings.

Who sent the default notice to Pacific Oak Strategic Opportunity REIT (PCOK)?

The default notice was sent by Pacific Oak Capital Advisors, LLC, the company’s predecessor advisor through January 31, 2026. It relates to a $10.0 million loan that the advisor had extended to the company’s operating partnership in July 2025.

What does the advisor allege about the $10.0 million loan to PCOK’s operating partnership?

The advisor alleges that no interest has ever been paid on the $10.0 million related party loan. On that basis, it claims the loan is in default, states all principal and interest are now due, and asserts default interest is accruing with more collateral required.

How is Pacific Oak Strategic Opportunity REIT (PCOK) responding to the default allegations?

Pacific Oak is investigating payments made by the company and its operating partnership to the advisor since the loan was made. It explicitly reserves all rights to dispute that the related party loan is in default, signaling that it may challenge the advisor’s assertions.

What type of obligation does this 8-K describe for Pacific Oak Strategic Opportunity REIT (PCOK)?

The 8-K describes a triggering event related to a direct financial obligation. A notice of default on a $10.0 million related party loan may accelerate repayment obligations and add default interest and collateral demands, depending on how the dispute is ultimately resolved.