The San Diego Business Journal recently reported that according to SEC documents the local owner of one of Pacific Office Properties’ office complexes, Sorrento Technology Center in San Diego, “is in default on a loan of $11.6 million.” As of the time of the articles’ release, Pacific Office Properties Trust Inc. was “in negotiations with its lender to modify terms on the loan.”
The potential default is difficult news for Pacific Office Properties which “announced in July that the NYSE Amex [had] accepted its plan for regaining compliance with the stock exchange’s listing standards.” According to the San Diego Business Journal, “the company in April had received notice of a potential delisting because it had total equity of less than $2 million and losses in two out of its three most recent fiscal years.”
The White Law Group will continue to carefully monitor this situation and how it affects investors.
The White Law Group is currently representing many investors who own high-risk REITs in claims against the brokerage firm that recommended the investment. While REIT investments provide a legitimate way for smaller investors to be able invest in commercial real estate, REIT investments are not suitable for all investors. REITs often pay a higher commission to the brokers than traditional investments, which may, in some cases, explain the motivation for financial professionals in encouraging clients to invest in REITs.
Also, brokerage firms have a fiduciary duty to recommend only those investments that are appropriate for the investor in light of the investor’s age, net worth, investment experience, and investment objectives.
If you have questions about your investment in Pacific Office Properties Trust Inc. (REIT), call our Chicago office at 312/238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.