Pacific Oak Strategic Opportunity REIT Signs with Pacific Oak Capital Advisors

November 4, 2019 | James Sprow | Blue Vault

On November 1, 2019, KBS Strategic Opportunity REIT, Inc. amended its charter to be re-named Pacific Oak Strategic Opportunity REIT, Inc. The amendment to the charter of the corporation was approved by a majority of the entire board of directors.

On November 1, 2019, Pacific Oak Strategic Opportunity REIT, Inc. (“the Company”) entered into a new advisory agreement with a new external advisor, Pacific Oak Capital Advisors, LLC (the “Advisor”). The Advisor is part of a group of companies formed, owned and managed by Keith D. Hall, the Company’s Chief Executive Officer and one of its directors, and Peter McMillan III, the Company’s Chairman of the Board and President and one of its directors. The terms of the Advisory Agreement are identical to the terms of the advisory agreement previously in effect with KBS Capital Advisors LLC with the exception of the calculation of the performance fee.

Under the terms of the Advisory Agreement, the Advisor must use its best efforts to present to the Company investment opportunities that provide a continuing and suitable investment program for the Company consistent with its investment policies and objectives as adopted by the board of directors of the Company. Pursuant to the Advisory Agreement, the Advisor will manage the Company’s day-to-day operations, retain the loan servicers for the Company’s loan investments (subject to the authority of the Board and officers) and perform other duties, including, but not limited to, the following:

• finding, presenting and recommending investment opportunities to the Company consistent with its investment

• making investment decisions for the Company, subject to the limitations in its charter and the direction and oversight of its board of directors;

• structuring the terms and conditions of Company investments, sales and joint ventures;

• acquiring investments on the Company’s behalf in compliance with its investment objectives and policies;

• sourcing and structuring the Company’s loan originations;

• arranging for financing and refinancing of investments;

• entering into service contracts for the Company’s loans;

• supervising and evaluating each loan servicer’s and property manager’s performance;

• reviewing and analyzing the operating and capital budgets of properties underlying the Company’s investments and properties it may acquire;

• entering into leases and service contracts for the Company’s real properties;

• assisting the Company in obtaining insurance;

• generating an annual budget for the Company;

• reviewing and analyzing financial information for each of the Company’s assets and the overall portfolio;

• formulating and overseeing the implementation of strategies for the administration, promotion, management, financing and refinancing, marketing, servicing and disposition of the Company’s investments;

• performing investor-relations services;

• maintaining accounting and other records and assisting the Company in filing all reports required to be filed with the SEC, the Internal Revenue Service and other regulatory agencies;

• engaging and supervising the performance of the Company’s agents, including its registrar and transfer agent; and

• performing any other services reasonably requested by the Company.

The Advisory Agreement has a one-year term but may be renewed for an unlimited number of successive one year periods upon the mutual consent of the Advisor and the Company. Additionally, the Advisor may terminate the Advisory Agreement without penalty upon 90 days’ written notice and the Company may terminate the Advisory Agreement without cause or penalty upon 30 days’ written notice and, in such event, the Advisor must cooperate with the Company and its directors in making an orderly transition of the advisory function.

The Advisor and its affiliates engage in other business ventures, and, as a result, they do not dedicate their resources exclusively to the Company’s business. However, pursuant to the Advisory Agreement, the Advisor must devote sufficient resources to the Company’s business to discharge its obligations to the Company. The Advisor may assign the Advisory Agreement to an affiliate upon the Company’s approval. The Company may assign or transfer the Advisory Agreement to a successor entity.

Source:  SEC