Concerned about investment in Pacific Oak Strategic Opportunity REIT, Inc?
Have you suffered losses investing in Pacific Oak Strategic Opportunity REIT? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
Pacific Oak Strategic Opportunity REIT, a non-traded REIT, was reportedly designed to capitalize on the dislocation, lack of liquidity, and government intervention that exists in the commercial real estate markets by acquiring a diverse portfolio of opportunistic investments in discounted debt and distressed equity assets, according to its website.
The company sent a letter to investors in November 2021 in response to a tender offer to shareholders from Comrit Investments 1, Limited Partnership and/or its affiliates. Comrit was reportedly offering to purchase shares of Pacific Oak Strategic Opportunity REIT, Inc for $6.91 per share. The company claim that the offer price was substantially below the value of the Shares and recommended against selling Shares at that price.
Unfortunately, many Pacific Oak shareholders have been unable to redeem their shares due to a limited redemption program. The company notes in the letter that during the first and second quarters of 2021, it had unfulfilled requests to redeem 12,719,485 and 13,985,864 Shares, respectively, or 99.312% and 99.572%, respectively, of the Shares submitted for redemption, due to funding limitations.
After authorizing $30 million in additional funding for the SRP in August, the board of directors approved the temporary suspension of processing redemptions under the SRP in October.
The company says it is continuing to evaluate possible strategic alternatives to provide additional liquidity to stockholders, which may include the potential conversion of the REIT to an “NAV REIT” with increased capacity to repurchase shares through its SRP, and other strategies.
The REIT declared a NAV of $10.68 per share as of December 31, 2021, and shares were originally sold for $10 per share.
To learn more about Pacific Oak Strategic Opportunity REIT, please see: Pacific Oak Strategic Opportunity REIT Suspends Share Redemption Program.
The Risks of Non-Traded REITs
Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITS, like Pacific Oak Strategic Opportunity REIT, are considerably more complex and involve a high degree of risk. Unfortunately, many investors were not made adequately aware of the risks and liquidity problems associated with REITs. (Please see: Did your Financial Advisor Recommend Investing in Non-Traded REITs?)
The White Law Group has represented numerous investors in claims against the brokerage firm that recommended non-traded REITs to investors.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.
Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses.
If you have invested in Pacific Oak Strategic Opportunity REIT and would like to speak to a securities attorney about the potential to recover your investment losses, please call The White Law Group at 1-888-637-5510 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 Seattle, Washington.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.