Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | May 06, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-54382 | |
Entity Registrant Name | PACIFIC OAK STRATEGIC OPPORTUNITY REIT, INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 26-3842535 | |
Entity Address, Address Line One | 11766 Wilshire Blvd., Suite 1670 | |
Entity Address, City or Town | Los Angeles, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90025 | |
City Area Code | 424 | |
Local Phone Number | 208-8100 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 104,420,389 | |
Entity Central Index Key | 0001452936 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Real estate held for investment, net (Note 3) | $ 1,202,234 | $ 1,209,243 |
Real estate held for sale, net | 0 | 5,556 |
Real estate equity securities (Note 5) | 104,575 | 112,096 |
Total real estate and real estate-related investments, net | 1,306,809 | 1,326,895 |
Cash and cash equivalents | 59,304 | 84,172 |
Restricted cash | 38,123 | 21,259 |
Investments in unconsolidated entities (Note 10) | 88,934 | 88,256 |
Rents and other receivables, net | 19,775 | 21,795 |
Above-market leases, net | 2,548 | 2,642 |
Due from affiliate (Note 9) | 8,240 | 7,039 |
Prepaid expenses and other assets | 21,028 | 18,108 |
Goodwill | 13,534 | 13,534 |
Assets related to real estate held for sale, net | 0 | 919 |
Total assets | 1,558,295 | 1,584,619 |
Liabilities, mezzanine equity and equity | ||
Notes and bonds payable related to real estate held for investment, net | 981,931 | 989,879 |
Note payable related to real estate held for sale, net | 0 | 9,070 |
Notes and bonds payable, net (Note 6) | 981,931 | 998,949 |
Accounts payable and accrued liabilities | 18,803 | 23,852 |
Due to affiliate (Note 9) | 3,881 | 1,903 |
Below-market leases, net | 3,730 | 4,080 |
Other liabilities | 54,153 | 43,513 |
Redeemable common stock payable | 3,064 | 684 |
Restricted stock payable | 508 | 508 |
Dividends payable | 0 | 11,016 |
Total liabilities | 1,066,070 | 1,084,505 |
Commitments and contingencies (Note 14) | ||
Mezzanine equity | ||
Noncontrolling cumulative convertible redeemable preferred stock (Note 13) | 15,233 | 15,233 |
Redeemable noncontrolling interest | 5,006 | 2,822 |
Equity | ||
Preferred stock, $.01 par value; 10,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $.01 par value; 1,000,000,000 shares authorized, 104,496,165 and 94,141,251 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively | 1,045 | 941 |
Additional paid-in capital | 914,460 | 818,440 |
Cumulative distributions and net income | (453,770) | (347,691) |
Total Pacific Oak Strategic Opportunity REIT, Inc. stockholders’ equity | 461,735 | 471,690 |
Noncontrolling interests | 10,251 | 10,369 |
Total equity | 471,986 | 482,059 |
Total liabilities, mezzanine equity and equity | $ 1,558,295 | $ 1,584,619 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 104,496,165 | 94,141,251 |
Common stock, shares outstanding (in shares) | 104,496,165 | 94,141,251 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues: | ||
Rental income | $ 29,382 | $ 32,648 |
Dividend income from real estate equity securities | 2,387 | 2,753 |
Total revenues | 38,527 | 38,944 |
Expenses: | ||
Operating, maintenance, and management | 9,875 | 10,433 |
Real estate taxes and insurance | 5,024 | 5,289 |
Hotel expenses | 5,113 | 3,390 |
Asset management fees to affiliate | 3,127 | 3,852 |
General and administrative expenses | 2,991 | 1,869 |
Foreign currency transaction gain, net | (7,266) | (8,346) |
Depreciation and amortization | 12,565 | 17,001 |
Interest expense | 9,563 | 9,941 |
Total expenses | 40,992 | 43,429 |
Other income (loss): | ||
Equity in (loss) income of unconsolidated entities | (679) | 169 |
Other interest income | 46 | 45 |
(Loss) gain on real estate equity securities | (7,521) | 10,753 |
Gain on sale of real estate | 3,523 | 21 |
Gain on extinguishment of debt | 2,367 | 0 |
Change in subordinated performance fee due upon termination to affiliate | 0 | (461) |
Total other (loss) income, net | (2,264) | 10,527 |
Net (loss) income | (4,729) | 6,042 |
Net loss attributable to noncontrolling interests | 118 | 663 |
Net loss attributable to redeemable noncontrolling interest | 47 | 32 |
Preferred stock dividends | (191) | (225) |
Net (loss) income attributable to common stockholders | $ (4,755) | $ 6,512 |
Net (loss) income per common share, basic (in dollars per share) | $ (0.05) | $ 0.07 |
Net (loss) income per common share, diluted (in dollars per share) | $ (0.05) | $ 0.07 |
Weighted-average number of common shares outstanding, basic (in shares) | 101,419,947 | 98,036,134 |
Weighted-average number of common shares outstanding, diluted (in shares) | 101,419,947 | 98,036,134 |
Hotel | ||
Revenues: | ||
Revenue | $ 5,917 | $ 2,575 |
Other | ||
Revenues: | ||
Revenue | $ 841 | $ 968 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Total Stockholders' Equity | Common Stock | Additional Paid-in Capital | Cumulative Distributions and Net Income (Loss) | Noncontrolling Interests |
Balance (in shares) at Dec. 31, 2020 | 98,054,582 | |||||
Balance at Dec. 31, 2020 | $ 519,712 | $ 506,554 | $ 979 | $ 831,295 | $ (325,720) | $ 13,158 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 5,849 | 6,512 | 6,512 | (663) | ||
Transfers from redeemable common stock | 853 | 853 | 853 | |||
Redemptions of common stock (in shares) | (88,143) | |||||
Redemptions of common stock | (853) | (853) | (853) | |||
Noncontrolling interests contributions | 20 | 0 | 20 | |||
Balance (in shares) at Mar. 31, 2021 | 97,966,439 | |||||
Balance at Mar. 31, 2021 | $ 525,581 | 513,066 | $ 979 | 831,295 | (319,208) | 12,515 |
Balance (in shares) at Dec. 31, 2021 | 94,141,251 | 94,141,251 | ||||
Balance at Dec. 31, 2021 | $ 482,059 | 471,690 | $ 941 | 818,440 | (347,691) | 10,369 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (4,873) | (4,755) | (4,755) | (118) | ||
Transfers to redeemable common stock | (2,380) | (2,380) | (2,380) | |||
Redemptions of common stock (in shares) | (65,165) | |||||
Redemptions of common stock | (589) | (589) | (589) | |||
Adjustment to redemption value of mezzanine equity redeemable noncontrolling interest | (2,231) | (2,231) | (2,231) | |||
Stock distribution issued (in shares) | 10,420,079 | |||||
Stock distribution issued | $ 0 | 0 | $ 104 | 98,989 | (99,093) | |
Balance (in shares) at Mar. 31, 2022 | 104,496,165 | 104,496,165 | ||||
Balance at Mar. 31, 2022 | $ 471,986 | $ 461,735 | $ 1,045 | $ 914,460 | $ (453,770) | $ 10,251 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Cash Flows from Operating Activities: | |||
Net (loss) income | $ (4,729) | $ 6,042 | |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | |||
Change in subordinated performance fee due upon termination to affiliate | 0 | 461 | |
Equity in loss (income) of unconsolidated entities | 1,560 | (169) | |
Depreciation and amortization | 12,565 | 17,001 | |
Loss (gain) on real estate equity securities | 7,521 | (10,753) | |
Gain on sale of real estate | (3,523) | (21) | |
Gain on extinguishment of debt | (2,367) | 0 | |
Unrealized (gain) loss on interest rate caps | (55) | 13 | |
Deferred rent | (1,055) | (1,085) | |
Amortization of above- and below-market leases, net | (256) | (326) | |
Amortization of deferred financing costs | 680 | 813 | |
Amortization of discount on bond and notes payable | 1,016 | 482 | |
Foreign currency transaction gain, net | (7,266) | (8,346) | |
Changes in assets and liabilities: | |||
Rents and other receivables | 2,937 | 349 | |
Prepaid expenses and other assets | (3,355) | (1,857) | |
Accounts payable and accrued liabilities | (4,983) | (6,358) | |
Due to affiliates | 1,978 | 2,223 | |
Other liabilities | (353) | 220 | |
Net cash provided by (used in) operating activities | 315 | (1,311) | |
Cash Flows from Investing Activities: | |||
Acquisitions of real estate | 0 | (2,037) | |
Improvements to real estate | (4,888) | (4,434) | |
Proceed from sales of real estate, net | 398 | 166 | |
Investment in unconsolidated entities | (1,500) | (1,180) | |
Distributions of capital from unconsolidated entities | 142 | 0 | |
Purchase of interest rate caps | (506) | (18) | |
Escrow deposits for future real estate sales | 13,500 | 0 | |
Advance to affiliate | (1,201) | 0 | |
Proceeds from the sale of real estate equity securities | 0 | 14,439 | |
Net cash provided by investing activities | 5,945 | 6,936 | |
Cash Flows from Financing Activities: | |||
Proceeds from notes payable | 53,758 | 97,125 | |
Principal payments on notes payable | (55,066) | (61,300) | |
Payments of deferred financing costs | (861) | (1,054) | |
Payments to redeem common stock | (589) | (853) | |
Payment of prepaid other offering costs | 0 | (32) | |
Distributions paid | (11,016) | 0 | |
Preferred dividends paid | (191) | (225) | |
Noncontrolling interests contributions | 0 | 20 | |
Other financing proceeds, net | 0 | 2,367 | |
Net cash (used in) provided by financing activities | (13,965) | 36,048 | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (299) | (1,881) | |
Net (decrease) increase in cash, cash equivalents and restricted cash | (8,004) | 39,792 | |
Cash, cash equivalents and restricted cash, beginning of period | 105,431 | 74,319 | $ 74,319 |
Cash, cash equivalents and restricted cash, end of period | $ 97,427 | $ 114,111 | $ 105,431 |
ORGANIZATION
ORGANIZATION | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATIONPacific Oak Strategic Opportunity REIT, Inc. (the “Company”) was formed on October 8, 2008 as a Maryland corporation and elected to be taxed as a real estate investment trust (“REIT”) beginning with the taxable year ended December 31, 2010. The Company conducts its business primarily through Pacific Oak SOR (BVI) Holdings, Ltd. (“Pacific Oak SOR BVI”), a private company limited by shares according to the British Virgin Islands Business Companies Act, 2004, which was incorporated on December 18, 2015 and is authorized to issue a maximum of 50,000 common shares with no par value. Upon incorporation, Pacific Oak SOR BVI issued one certificate containing 10,000 common shares with no par value to Pacific Oak Strategic Opportunity Limited Partnership (the “Operating Partnership”), a Delaware limited partnership formed on December 10, 2008. The Company is the sole general partner of, and owns a 0.1% partnership interest in, the Operating Partnership. Pacific Oak Strategic Opportunity Holdings LLC (“REIT Holdings”), a Delaware limited liability company formed on December 9, 2008, owns the remaining 99.9% interest in the Operating Partnership and is its sole limited partner. The Company is the sole member and manager of REIT Holdings. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES There have been no significant changes to the Company’s accounting policies since it filed its audited financial statements in its Annual Report on Form 10-K for the year ended December 31, 2021. For further information about the Company’s accounting policies, refer to the Company’s consolidated financial statements and notes thereto for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K filed with the SEC. Principles of Consolidation and Basis of Presentation The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the FASB Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. The consolidated financial statements include the accounts of the Company, REIT Holdings, the Operating Partnership, Pacific Oak SOR BVI and their direct and indirect wholly owned subsidiaries, joint ventures in which the Company has a controlling interest and VIEs in which the Company is the primary beneficiary. All significant intercompany balances and transactions are eliminated in consolidation. Liquidity The Company generally finances its real estate investments using notes payable that are typically structured as non-course secured mortgages with maturities of approximately three Reclassifications Certain prior period amounts have been reclassified to conform to our current period presentation. In that regard, we have reclassified held for sale activity related to dispositions in our consolidated balance sheets as of December 31, 2021. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. Restricted Cash Restricted cash is comprised of escrow deposits for future real estate sales and lender impound reserve accounts on the Company’s borrowings for security deposits, property taxes, insurance, debt service obligations and capital improvements and replacements. Segments The Company operates in three reportable business segments: opportunistic real estate and real estate-related investments, single-family homes, and hotels, which is how the Company's management manages the business. In general, the Company intends to hold its investments in opportunistic real estate and other real estate-related assets for capital appreciation. Traditional performance metrics of opportunistic real estate and other real estate-related assets may not be meaningful as these investments are generally non-stabilized and do not provide a consistent stream of interest income or rental revenue. These investments exhibit similar long-term financial performance and have similar economic characteristics. These investments typically involve a higher degree of risk and do not provide a constant stream of ongoing cash flows. As a result, the Company’s management views opportunistic real estate and other real estate-related assets as similar investments and aggregated into one reportable business segment. The Company owns single-family homes in 18 markets and are all aggregated into one reportable business segment due to the homes being stabilized, having high occupancy rates and have similar economic characteristics. Additionally, the Company owns two hotels and are aggregated into one reportable business segment due to the nature of the hotel business with short-term stays. Per Share Data We determine basic earnings per share and basic earnings per unit based on the weighted average number of shares of common stock or units, as applicable, outstanding during the period and we consider any participating securities, including unvested restricted stock, for purposes of applying the two-class method. We determine diluted earnings per share and diluted earnings per unit based on the weighted average number of shares of common stock or units, as applicable, outstanding combined with the incremental weighted average number of shares or units, as applicable, that would have been outstanding assuming all potentially dilutive securities were converted into shares of common stock or units, as applicable, at the earliest date possible. The noncontrolling Series A convertible redeemable preferred shares of Pacific Oak Residential Trust, Inc. (“PORT”) were not included as the shares are contingent on PORT being public. Square Footage, Occupancy and Other Measures Any references to square footage, occupancy or annualized base rent are unaudited and outside the scope of the Company’s independent registered public accounting firm’s review of the Company’s financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board. Recently Issued Accounting Standards Updates On March 12, 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting , and on January 11, 2021, issued ASU 2021-01, Reference Rate Reform (Topic 848) – Scope , both of which provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference LIBOR or other reference rates expected to be discontinued because of reference rate reform. These ASUs are effective through December 31, 2022. The Company has not adopted any of the optional expedients or exceptions through March 31, 2022, but will continue to evaluate the possible adoption of any such expedients or exceptions during the effective period as circumstances evolve |
REAL ESTATE HELD FOR INVESTMENT
REAL ESTATE HELD FOR INVESTMENT | 3 Months Ended |
Mar. 31, 2022 | |
Real Estate [Abstract] | |
REAL ESTATE FOR INVESTMENT | REAL ESTATE HELD FOR INVESTMENT As of March 31, 2022, the Company owned eight office properties, one office portfolio consisting of two office buildings and 14 acres of undeveloped land, encompassing, in the aggregate, approximately 3.2 million rentable square feet. As of March 31, 2022, these properties were 73% occupied. In addition, the Company owned one residential home portfolio consisting of 1,814 single-family homes and encompassing approximately 2.5 million rental square feet and two apartment properties, containing 609 units and encompassing approximately 0.5 million rentable square feet, which was 92% and 96% occupied, respectively as of March 31, 2022. As of March 31, 2022, the Company also owned two hotel properties with an aggregate of 649 rooms and three investments in undeveloped land with approximately 800 developable acres and one office/retail development property. The following table summarizes the Company’s real estate held for investment as of March 31, 2022 and December 31, 2021, respectively (in thousands): March 31, 2022 December 31, 2021 Land $ 276,608 $ 275,683 Buildings and improvements 1,021,399 1,017,465 Tenant origination and absorption costs 42,159 43,375 Total real estate, cost 1,340,166 1,336,523 Accumulated depreciation and amortization (137,932) (127,280) Total real estate, net $ 1,202,234 $ 1,209,243 Operating Leases Certain of the Company’s real estate properties are leased to tenants under operating leases for which the terms and expirations vary. As of March 31, 2022, the leases, excluding options to extend, apartment leases and single-family home leases, which have terms that are generally one year or less, had remaining terms of up to 13.3 years with a weighted-average remaining term of 3.8 years. Some of the leases have provisions to extend the lease agreements, options for early termination after paying a specified penalty and other terms and conditions as negotiated. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. Generally, upon the execution of a lease, the Company requires a security deposit from tenants in the form of a cash deposit and/or a letter of credit. The amount required as a security deposit varies depending upon the terms of the respective leases and the creditworthiness of the tenant, but generally are not significant amounts. Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of its security deposit. Security deposits received in cash and assumed in real estate acquisitions related to tenant leases are included in other liabilities in the accompanying consolidated balance sheets totaled $6.8 million and $6.0 million as of March 31, 2022 and December 31, 2021, respectively. During both of the three months ended March 31, 2022 and 2021, the Company recognized deferred rent from tenants of $1.1 million, net of lease incentive amortization. As of March 31, 2022 and December 31, 2021, the cumulative deferred rent receivable balance, including unamortized lease incentive receivables, was $16.7 million and $16.3 million, respectively, and is included in rents and other receivables on the accompanying consolidated balance sheets. The cumulative deferred rent balance included $3.0 million and $3.3 million of unamortized lease incentives as of March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022, the future minimum rental income from the Company’s properties, excluding apartment leases, under non-cancelable operating leases was as follows (in thousands): April 1, 2022 through December 31, 2022 $ 46,626 2023 55,716 2024 49,067 2025 38,581 2026 26,872 Thereafter 62,406 $ 279,268 As of March 31, 2022, the Company’s commercial real estate properties were leased to approximately 300 tenants over a diverse range of industries and geographic areas. The Company’s highest tenant industry concentrations (greater than 10% of annualized base rent) were as follows: Industry Number of Tenants Annualized Base Rent (1) (in thousands) Percentage of Professional, Scientific, and Technical Services 44 $ 8,375 12.8 % Public Administration 12 7,592 11.6 % Computer Systems Design 28 6,971 10.6 % $ 22,938 35.0 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of March 31, 2022, adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term. Hotel Properties The following table provides detailed information regarding the Company’s hotel revenues for its two hotel properties during the three months ended March 31, 2022 and 2021 (in thousands): Three Months Ended March 31, 2022 2021 Hotel revenues: Room $ 4,295 $ 1,673 Food, beverage and convention services 280 296 Campground 793 243 Other 549 363 Hotel revenues $ 5,917 $ 2,575 Contract liabilities The following table summarizes the Company’s contract liabilities, which are comprised of hotel advanced deposits and deferred proceeds received from the buyers of the Park Highlands land sales and another developer for the value of land that was contributed to a master association that is consolidated by the Company, which are included in other liabilities in the accompanying consolidated balance sheets, as of March 31, 2022 and December 31, 2021 (in thousands): March 31, 2022 December 31, 2021 Contract liability $ 20,946 $ 7,313 Revenue recognized in the period from: Amounts included in contract liability at the beginning of the period $ 134 $ 159 Geographic Concentration Risk As of March 31, 2022, the Company’s real estate investments in California and Georgia represented 23.0% and 10.4%, respectively, of the Company’s total assets. As a result, the geographic concentration of the Company’s portfolio makes it particularly susceptible to adverse economic developments in the California real estate markets. Any adverse economic or real estate developments in these markets, such as business layoffs or downsizing, industry slowdowns, relocations of businesses, changing demographics and other factors, or any decrease in demand for office space resulting from the local business climate, could adversely affect the Company’s operating results and its ability to make distributions to stockholders. Recent Real Estate Sale On January 24, 2022, the Company, through an indirect wholly owned subsidiary, sold two office buildings related to the Richardson Portfolio and containing 141,950 rentable square feet in Richardson, Texas (“Greenway Buildings”) to a purchaser unaffiliated with the Company or the Advisor (as defined in Note 9), for $11.0 million, before closing costs and credits. The carrying value of the Greenway Buildings as of the disposition date was $5.6 million, which was net of $3.2 million of accumulated depreciation and amortization. In connection with the sale of the Greenway Buildings, the Company repaid $9.1 million of the outstanding principal balance due under the mortgage loan secured by the Greenway Buildings. The Company recognized a gain on sale of $3.6 million related to the disposition of the Greenway Buildings, net of closing costs and adjustments. As a result of the sale of the Greenway Buildings, certain assets and liabilities were reclassified to held for sale on the consolidated balance sheets as of December 31, 2021. Park Highlands Land Purchase and Sale Contract The Company enters into land purchase and sale contracts to dispose of Park Highlands developed and undeveloped land. Under these contracts, the Company will receive a stated deposit from the buyer, held in escrow, in consideration for the right, but not the obligation, to purchase the land at a future point in time with predetermined terms. After a contractually specified date, the deposits are not refundable even in the event the contract terminates, at which point the Company records restricted cash and other liabilities on the consolidated balance sheets. On November 11, 2021, the Company, through an indirect wholly owned subsidiary, entered into a purchase and sale agreement, as amended, to sell 234 (previously 238 and amended to reduce by 4 acres) developable acres of undeveloped land located in North Las Vegas, Nevada (“Park Highlands”) for gross sales proceeds of approximately $124.5 million, before closing costs and credits. The due diligence period expired on February 23, 2022 and the buyer’s deposit of $13.5 million is no longer refundable. This deposit is held in an escrow account and will become available once the sale is completed. Following the sale, the Company is expected to own approximately 526 developable acres of Park Highlands. Of the 234 acres, 163 acres are scheduled to sell in 2022 and the remainder in 2023. Actions are required by the Company to complete the planned sale. |
TENANT ORIGINATION AND ABSORPTI
TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES | 3 Months Ended |
Mar. 31, 2022 | |
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract] | |
TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES | TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES As of March 31, 2022 and December 31, 2021, the Company’s tenant origination and absorption costs, above-market lease assets and below-market lease liabilities (excluding fully amortized assets and liabilities and accumulated amortization) were as follows (in thousands): Tenant Origination and Above-Market Below-Market March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Cost $ 42,159 $ 43,375 $ 4,138 $ 4,138 $ (6,622) $ (6,719) Accumulated Amortization (21,976) (20,738) (1,590) (1,496) 2,892 2,639 Net Amount $ 20,183 $ 22,637 $ 2,548 $ 2,642 $ (3,730) $ (4,080) Increases (decreases) in net income as a result of amortization of the Company’s tenant origination and absorption costs, above-market lease assets and below-market lease liabilities for the three months ended March 31, 2022 and 2021 were as follows (in thousands): Tenant Origination and Above-Market Below-Market For the Three Months Ended March 31, For the Three Months Ended March 31, For the Three Months Ended March 31, 2022 2021 2022 2021 2022 2021 Amortization $ (2,490) $ (5,222) $ (94) $ (234) $ 350 $ 560 |
REAL ESTATE EQUITY SECURITIES
REAL ESTATE EQUITY SECURITIES | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
REAL ESTATE EQUITY SECURITIES | REAL ESTATE EQUITY SECURITIES As of March 31, 2022, the Company owned three investments in real estate equity securities. The following table sets forth the number of shares owned by the Company and the related carrying value of the shares as of March 31, 2022 and December 31, 2021 (dollars in thousands): March 31, 2022 December 31, 2021 Real Estate Equity Security Number of Shares Owned Total Carrying Value Number of Shares Owned Total Carrying Value Keppel Pacific Oak US REIT 64,165,352 $ 47,162 64,165,352 $ 51,332 Franklin Street Properties Corp. 6,915,089 40,799 6,915,089 41,145 Plymouth Industrial REIT, Inc. 613,085 16,614 613,085 19,619 71,693,526 $ 104,575 71,693,526 $ 112,096 The following summarizes the portion of gain and loss for the period related to real estate equity securities held during the three months ended March 31, 2022 and 2021 (in thousands): Three Months Ended March 31, 2022 2021 Net (loss) gain recognized during the period on real estate equity securities $ (7,521) $ 10,753 Less net gain recognized during the period on real estate equity securities sold during the period — (225) Unrealized (loss) gain recognized during the reporting period on real estate equity securities held at the end of the period $ (7,521) $ 10,528 |
NOTES AND BOND PAYABLE
NOTES AND BOND PAYABLE | 3 Months Ended |
Mar. 31, 2022 | |
Notes and Bonds Payable [Abstract] | |
NOTES AND BOND PAYABLE | NOTES AND BONDS PAYABLE As of March 31, 2022 and December 31, 2021, the Company’s notes and bonds payable consisted of the following (dollars in thousands): Book Value as of March 31, 2022 Book Value as of December 31, 2021 Contractual Interest Rate as of March 31, 2022 Effective Interest Rate at March 31, 2022 (1) Payment Type (2) Maturity Date (3) Richardson Portfolio Mortgage Loan $ 19,190 $ 28,470 Floating Rate + 2.50% 2.95% Principal & Interest 11/01/2022 Park Centre Mortgage Loan 26,185 26,185 Floating Rate + 1.75% 2.20% Interest Only 06/27/2022 1180 Raymond Mortgage Loan (4) 31,070 31,070 Floating Rate + 2.25% 2.70% Interest Only 12/01/2023 Pacific Oak SOR BVI Series B Debentures (5) 264,503 271,978 3.93% 3.93% (5) 01/31/2026 Crown Pointe Mortgage Loan 53,758 52,315 Floating Rate + 2.30% 2.75% Interest Only 04/01/2025 The Marq Mortgage Loan 61,683 61,874 Floating Rate + 1.55% 2.00% Principal & Interest 06/06/2022 Eight & Nine Corporate Centre Mortgage Loan 48,395 48,545 Floating Rate + 1.60% 2.05% Principal & Interest 06/08/2022 Georgia 400 Center Mortgage Loan 61,154 61,154 Floating Rate + 1.55% 2.00% Interest Only 05/22/2023 PORT Mortgage Loan 1 51,302 51,302 4.74% 4.74% Interest Only 10/01/2025 PORT Mortgage Loan 2 10,523 10,523 4.72% 4.72% Interest Only 03/01/2026 PORT MetLife Loan 60,000 60,000 3.90% 3.90% Interest Only 04/10/2026 Springmaid Beach Resort Mortgage Loan 55,143 55,491 Floating Rate + 2.25% (6) 5.75% Principal & Interest 08/12/2022 Q&C Hotel Mortgage Loan 25,000 25,000 Floating Rate + 2.50% (7) 4.50% Principal & Interest 12/23/2022 Lincoln Court Mortgage Loan (4) 34,524 34,623 Floating Rate + 1.75% 2.20% Principal & Interest 04/01/2022 (8) Lofts at NoHo Commons Mortgage Loan 74,536 74,536 Floating Rate + 2.18% (9) 3.93% Interest Only 09/09/2022 210 West 31st Street Mortgage Loan (4) 7,425 8,850 Floating Rate + 3.00% 3.45% Principal & Interest 06/16/2022 Oakland City Center Mortgage Loan 95,747 96,075 Floating Rate + 1.75% 2.20% Principal & Interest 09/01/2022 Madison Square Mortgage Loan 17,500 17,500 4.63% 4.63% Interest Only 10/07/2024 Total Notes and Bonds Payable principal outstanding 997,638 1,015,491 Discount on Notes and Bonds Payable, net (10) (7,130) (8,146) Deferred financing costs, net (8,577) (8,396) Total Notes and Bonds Payable, net $ 981,931 $ 998,949 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of March 31, 2022. Effective interest rate is calculated as the actual interest rate in effect as of March 31, 2022 (consisting of the contractual interest rate and contractual floor rates), using interest rate indices at March 31, 2022, where applicable. (2) Represents the payment type required under the loan as of March 31, 2022. Certain future monthly payments due under this loan also include amortizing principal payments. For more information of the Company’s contractual obligations under its notes and bonds payable, see five-year maturity table below. (3) Represents the initial maturity date or the maturity date as extended as of March 31, 2022; subject to certain conditions, the maturity dates of certain loans may be extended beyond the date shown. (4) The Company’s notes and bond’s payable are generally non-recourse. These mortgage loans have guarantees over certain balances whereby the Company would be required to make guaranteed payments in the event that the Company turned the property over to the lender. The guarantees are typically 25% of the outstanding loan balance. As of March 31, 2022, the guaranteed amount in the aggregate was $23.8 million. (5) See “Israeli Bond Financing” below. (6) The interest rate is at the higher of one-month LIBOR + 2.25% or 5.77%. (7) The interest rate is at the higher of one-month LIBOR + 2.5% or 4.5%. (8) Subsequent to March 31, 2022, the Company extended the maturity date to August 1, 2022. (9) The floating interest rate is at the higher of one-month LIBOR or 1.75%, plus 2.18% . (10) Represents the unamortized premium/discount on notes and bonds payable due to the above- and below-market interest rates when the debt was assumed. The discount/premium is amortized over the remaining life of the notes and bonds payable. During the three months ended March 31, 2022 and 2021, the Company incurred $9.6 million and $9.9 million, respectively, of interest expense. Included in interest expense during the three months ended March 31, 2022 and 2021 was $0.7 million and $0.8 million, respectively of amortization of deferred financing costs. Additionally, during the three months ended March 31, 2022 and 2021, the Company capitalized $0.5 million and $0.6 million, respectively of interest related to its investments in undeveloped land. As of March 31, 2022 and December 31, 2021, the Company’s interest payable was $3.6 million and $6.6 million, respectively. The following is a schedule of maturities, including principal amortization payments, for all notes and bonds payable outstanding as of March 31, 2022 (in thousands): April 1, 2022 through December 31, 2022 $ 447,827 2023 92,224 2024 105,668 2025 193,229 2026 158,690 Thereafter — $ 997,638 As of May 6, 2022, the Company had a total of $444.0 million of debt obligations scheduled to mature over the next 12 months. The Company has extension options with respect to $309.6 million of the debt obligations outstanding that are scheduled to mature over the next 12 months; however, the Company cannot exercise these options if not then in compliance with certain financial covenants in the loans without making a cash payment and there is no assurance that we will be able to meet these requirements. All of the Company’s debt obligations are generally non-recourse, subject to certain limited guaranty payments, as outlined in the table above, except for the Company’s Series B Debentures. The Company plans to utilize available extension options or refinance the notes payable. The Company may also choose to market the properties for sale or may negotiate a turnover of the secured properties back to the related mortgage lender. The Company’s notes payable contain financial debt covenants, including minimum equity requirements and liquidity ratios. As of March 31, 2022, the Company was in compliance with all of these debt covenants with the exception that the Georgia 400 Center Mortgage Loan and Q&C Hotel Mortgage Loan were not in compliance with the debt service coverage requirement and the Lofts at Noho Commons Mortgage Loan was not in compliance with the debt yield requirement. As a result of such non-compliance, the Company is required to provide a cash sweep for these mortgage loans, as well as a deposit for the Georgia 400 Center Mortgage Loan. See Note 14 for further details on the deposit. Israeli Bond Financings On February 16, 2020, Pacific Oak SOR BVI issued 254.1 million Israeli new Shekels (approximately $74.1 million as of February 16, 2020) of Series B Debentures to Israeli investors pursuant to a public offering registered with the Israel Securities Authority. The Series B Debentures will bear interest at the rate of 3.93% per year. The Series B Debentures have principal installment payments equal to 33.33% of the face amount of the Series B Debentures on January 31st of each year from 2024 to 2026. On November 1, 2021, Pacific Oak Strategic Opportunity BVI issued additional Series B Debentures in the amount of 536.4 million Israeli new Shekels par value through a public offering. The public offering Series B Debentures were issued at a 2.6% discount resulting in a total consideration of 522.4 million Israeli new Shekels ($166.8 million as of November 1, 2021). Additionally, on November 8, 2021, Pacific Oak Strategic Opportunity BVI also issued Series B Debentures in the amount of 53.6 million Israeli new Shekels par value through a private offering. The private offering Series B Debentures were issued at a 3.1% discount resulting in a total consideration of 52.0 million Israeli new Shekels ($16.7 million as of November 8, 2021). The additional Series B Debentures have an equal level of security, pari passu, amongst themselves and between them and the initial Series B Debentures, which were initially issued, without any right of precedence or preference between any of them. The deed of trust that governs the terms of the and Series B Debentures contain various financial covenants. As of March 31, 2022, the Company was in compliance with all of these financial debt covenants. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS The Company enters into interest rate caps to mitigate its exposure to rising interest rates on its variable rate notes payable. The values of interest rate caps are primarily impacted by interest rates, market expectations about interest rates, and the remaining term of the instrument. In general, increases in interest rates, or anticipated increases in interest rates, will increase the value of interest rate caps. As the remaining life of an interest rate cap decreases, the value of the instrument will generally decrease towards zero. As of March 31, 2022, the Company had entered into three interest rate caps, which were not designated as a hedging instruments. The following table summarizes the notional amounts and other information related to the Company’s derivative instruments as of March 31, 2022. The notional amount is an indication of the extent of the Company’s involvement in the instrument at that time, but does not represent exposure to credit, interest rate or market risks (dollars in thousands): Derivative Instrument Effective Date Maturity Date Notional Value Reference Rate Interest rate cap 09/15/2021 09/15/2022 $ 75,950 One-month LIBOR at 3.50% Interest rate cap 06/21/2019 05/22/2023 $ 51,252 One-month LIBOR at 4.00% Interest rate cap 03/24/2022 04/01/2024 $ 53,758 One-month SOFR at 2.50% The following table sets forth the fair value of the Company’s derivative instruments as well as their classification on the consolidated balance sheets as of March 31, 2022 and December 31, 2021 (dollars in thousands): March 31, 2022 December 31, 2021 Derivative Instruments Balance Sheet Location Number of Instruments Fair Value Number of Instruments Fair Value Derivative instruments not designated as hedging instruments Interest rate caps Prepaid expenses and other assets 3 $ 569 2 $ 8 |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES The following were the face values, carrying amounts and fair values of the Company’s financial instruments as of March 31, 2022 and December 31, 2021, which carrying amounts do not approximate the fair values (in thousands): March 31, 2022 December 31, 2021 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial liabilities (Level 3): Notes payable $ 733,135 $ 729,713 $ 727,436 $ 743,513 $ 740,176 $ 740,347 Financial liabilities (Level 1): Pacific Oak SOR BVI Series B Debentures $ 264,503 $ 252,218 $ 262,453 $ 271,978 $ 258,773 $ 274,697 Disclosure of the fair value of financial instruments is based on pertinent information available to the Company as of the period end and requires a significant amount of judgment. This has made the estimation of fair values difficult and, therefore, both the actual results and the Company’s estimate of value at a future date could be materially different. As of March 31, 2022, the Company measured the following assets at fair value (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Recurring Basis: Real estate equity securities $ 104,575 $ 104,575 $ — $ — Asset derivative - interest rate caps $ 569 $ — $ 569 $ — As of December 31, 2021, the Company measured the following assets and liabilities at fair value (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Recurring Basis: Real estate equity securities $ 112,096 $ 112,096 $ — $ — Asset derivative - interest rate caps $ 8 $ — $ 8 $ — |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS As described further below, the Company has entered into agreements with certain affiliates pursuant to which they provide services to the Company. Keith D. Hall and Peter McMillan III control and indirectly own Pacific Oak Holding Group, LLC (“Pacific Oak Holding”), the Company’s sponsor since November 1, 2019. Pacific Oak Holding is the sole owner of the Pacific Oak Capital Advisors, LLC (the “Advisor”), the Company’s advisor since November 1, 2019. Messrs. Hall and McMillan are also two of the Company’s executive officers and directors. Subject to certain restrictions and limitations, the business of the Company is externally managed by the Advisor pursuant to an advisory agreement (the “Advisory Agreement”). The Advisory Agreement is currently effective through November 1, 2022; however the Company or the Advisor may terminate the Advisory Agreement without cause or penalty upon providing 60 days’ written notice. The Advisor conducts the Company’s operations and manages its portfolio of real estate and other real estate-related investments. Pursuant to the terms of the Advisory Agreement, summarized below are the related-party costs incurred by the Company for the three months ended March 31, 2022 and 2021, respectively, and any related amounts payable as of March 31, 2022 and December 31, 2021 (in thousands): Incurred during the three months ended March 31, Payable as of 2022 2021 March 31, 2022 December 31, 2021 Expensed Asset management fees $ 3,127 $ 3,852 $ 3,850 $ 1,903 Property management fees (1) 125 120 31 — Change in subordinated performance fee due upon termination to affiliate (2) — 461 (2) (2) Capitalized Acquisition fees on real estate (3) — 20 — — Disposition fees on real estate 107 — — — Acquisition fee on investment in unconsolidated entities — 29 — — $ 3,359 $ 4,482 $ 3,881 $ 1,903 _____________________ (1) Property management fees are for single-family homes under Battery Point Trust Inc. (“Battery Point”) and paid to a subsidiary of the Advisor (“DayMark”). These fees are included in the line item “Operating, maintenance, and management cost” in the consolidated statement of operations. (2) Change in estimate of fees payable to the Company’s previous advisor, KBS Capital Advisors LLC (“KBS Capital Advisors) due to the termination of the former advisory agreement with KBS Capital Advisors. (3) Acquisition fees associated with asset acquisitions are capitalized, while costs associated with business combinations expensed as incurred. During the three months ended March 31, 2022, the Company provided $1.2 million of funding to the 110 William Joint Venture for mortgage loan refinancing fees. As of March 31, 2022 and December 31, 2021, the Company recognized a due from affiliate of $8.2 million and $7.0 million, respectively, of which $7.0 million from both periods are related to funding provided to the 353 Sacramento Joint Venture for mortgage loan refinancing fees. Pacific Oak Opportunity Zone Fund I As of March 31, 2022, the Company owned 124 Class A Units in the Pacific Oak Opportunity Zone Fund I, LLC (“Pacific Oak Opportunity Zone Fund I”), which are included in investments in unconsolidated entities on the consolidated balance sheets. The Advisor is entitled to certain fees in connection with the fund. Pacific Oak Opportunity Zone Fund I will pay an acquisition fee equal to 1.5% of the purchase price of each asset (including any debt incurred or assumed and significant capital improvement costs budgeted as of the date of acquisition) with a purchase price less than or equal to $25.0 million plus 1.0% of the purchase price in excess of $25.0 million; a quarterly asset management fee equal to 0.25% of the total purchase price of all assets (including any debt incurred or assumed and significant capital improvement costs budgeted as of the date of acquisition) as of the end of the applicable quarter; and a financing fee equal to 0.5% of the original principal amount of any indebtedness they incur (reduced by any financing fee previously paid with respect to indebtedness being refinanced). In the case of investments made through joint ventures, the fees above will be determined based on the Company’s proportionate share of the investment. The Advisor is also entitled to certain distributions paid by the Pacific Oak Opportunity Zone Fund I after the Class A Members have received their preferred return. These fees and distributions have been waived for the Company’s investment. In addition, side letter agreements between the Advisor and Pacific Oak Opportunity Zone Fund I were executed on February 28, 2020 and stipulate that any asset management fees allocable to the Company and waived by Pacific Oak Capital Advisors for Pacific Oak Opportunity Zone Fund I will distributed to the Company. During the three months ended March 31, 2022 and 2021, the Company recorded $0.1 million and $0.2 million, respectively, of waived asset management fees recorded as equity in income of unconsolidated entities, of which $0.1 million was a receivable as of March 31, 2022 and included in rents and other receivables, net on the consolidated balance sheet. PORT II As of March 31, 2022, the Company contributed $13.0 million in PORT II OP, LLC (“PORT II OP”), a wholly owned subsidiary of Pacific Oak Residential Trust II, Inc. ("PORT II"). On August 31, 2020, PORT II entered into an advisory agreement (as subsequently amended and restated on October 9, 2020, “PORT II Advisory Agreement”) with Pacific Oak Residential Advisors, LLC (“PORA”), an affiliate of the Advisor. Pursuant to the PORT II Advisory Agreement, PORT II has engaged PORA to act as its external advisor with respect to PORT II’s operations and assets. Because the Company has separately engaged the Advisor to manage its operations and assets, including its interests in PORT II, on November 12, 2020, the Company and the Advisor agreed to amend their advisory agreement to provide that PORT II’s operations and assets will be managed by PORA and not by the Advisor. On August 31, 2020, PORT II entered into a property management agreement with DMH Realty, LLC (“DMH”), an affiliate of the Advisor and PORA. Pursuant to the property management agreement, PORT II will pay to DMH a base fee equal to the following: (a) for all rent collections up to $50 million per year, 8%; (b) for all rent collections in excess of $50 million per year, but less than or equal to $75 million per year, 7%; and (c) for all rent collections in excess of $75 million per year, 6%. PORT II will also pay DMH market-based leasing fees that will depend on the type of tenant, shared fees equal to 100% of any application fees collected and 50% of any insufficient funds fees, late fees and certain other fees collected. DMH may also perform additional services at rates that would be payable to unrelated parties. |
INVESTMENT IN UNCONSOLIDATED EN
INVESTMENT IN UNCONSOLIDATED ENTITIES | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN UNCONSOLIDATED ENTITIES | INVESTMENT IN UNCONSOLIDATED ENTITIES As of March 31, 2022 and December 31, 2021, the Company’s investments in unconsolidated entities were composed of the following (dollars in thousands): Number of Properties as of March 31, 2022 Investment Balance as of Joint Venture Location Ownership % March 31, 2022 December 31, 2021 110 William Joint Venture 1 New York, New York 60.0% $ — — 353 Sacramento Joint Venture 1 San Francisco, California 55.0% 49,280 49,916 Pacific Oak Opportunity Zone Fund I 3 Various 46.0% 27,214 27,215 PORT II OP LP 251 Various 91.9% 12,440 11,125 $ 88,934 $ 88,256 Investment in 110 William Joint Venture On December 23, 2013, the Company, through an indirect wholly owned subsidiary, entered into an agreement with SREF III 110 William JV, LLC (the “110 William JV Partner”) to form a joint venture (the “110 William Joint Venture”). On May 2, 2014, the 110 William Joint Venture acquired an office property containing 928,157 rentable square feet located on approximately 0.8 acres of land in New York, New York (“110 William Street”). Each of the Company and the 110 William JV Partner hold a 60% and 40% ownership interest in the 110 William Joint Venture, respectively. The Company exercises significant influence over the operations, financial policies and decision making with respect to the 110 William Joint Venture but significant decisions require approval from both members. Accordingly, the Company has accounted for its investment in the 110 William Joint Venture under the equity method of accounting. Income, losses, contributions and distributions are generally allocated based on the members’ respective equity interests. As of March 31, 2022 and December 31, 2021, the book value of the Company’s investment in the 110 William Joint Venture was $0. During the three months ended March 31, 2019, the Company suspended the equity method of accounting and the Company will not record the Company's share of losses and will not record the Company's share of any subsequent income for the 110 William Joint Venture until the Company’s share of net income exceeds the gain recorded and the Company’s share of the net losses not recognized during the period the equity method was suspended. During both of the three months ended March 31, 2022 and 2021, the Company did not record equity in income from the 110 William Joint venture. Investment in 353 Sacramento Joint Venture On July 6, 2017, the Company, through an indirect wholly owned subsidiary, entered into an agreement with the Migdal Members to form a joint venture (the “353 Sacramento Joint Venture”). On July 6, 2017, the Company sold a 45% equity interest in an entity that owns an office building containing 284,751 rentable square feet located on approximately 0.35 acres of land in San Francisco, California (“353 Sacramento”) to the Migdal Members. The sale resulted in 353 Sacramento being owned by the 353 Sacramento Joint Venture, in which the Company indirectly owns 55% of the equity interests and the Migdal Members indirectly own 45% in the aggregate of the equity interests. The Company exercises significant influence over the operations, financial policies and decision making with respect to the 353 Sacramento Joint Venture but significant decisions require approval from both members. Accordingly, the Company has accounted for its investment in the 353 Sacramento Joint Venture under the equity method of accounting. Income, losses, contributions and distributions are generally allocated based on the members’ respective equity interests. During the three months ended March 31, 2021, the Company made a contribution of $0.9 million to the 353 Sacramento Joint Venture. There were no contributions during the three months ended March 31, 2022. During the three months ended March 31, 2022 and 2021, the Company recognized a $0.6 million loss and income of $0.2 million, respectively, related to the 353 Sacramento Joint Venture. Investment in Pacific Oak Opportunity Zone Fund I As of March 31, 2022, the book value of the Company’s investment in Pacific Oak Opportunity Zone Fund I was $27.2 million, which includes $0.2 million of acquisition fees. As of March 31, 2022, Pacific Oak Opportunity Zone Fund I consolidated three joint ventures with real estate under development. As of March 31, 2022, the Company has concluded that Pacific Oak Opportunity Zone Fund I qualifies as a Variable Interest Entity (“VIE”) because there is insufficient equity at risk to finance the entity’s activities and the entity is structured with non-substantive voting rights. The Company concluded it is not the primary beneficiary of this VIE since it does not have the power to direct the activities that most significantly impact the entity’s economic performance and will account for its investment under the equity method of accounting. During the three months ended March 31, 2022 and 2021, the Company recognized a $0.1 million and $0.2 million loss related to this investment. The Company’s maximum exposure to loss as a result of its involvement with this VIE is limited to the carrying value of the investment in Pacific Oak Opportunity Zone Fund I which totaled $27.2 million as of March 31, 2022. Investment in PORT II PORT II is a Maryland corporation formed and sponsored by the Advisor to acquire, own and operate single family homes as rental properties as well as to acquire and own other interests, including mortgages on or securities related to single family homes. As of March 31, 2022, the Company owns 600 shares of common stock of PORT II, of which the Company exercises significant influence over the operations, financial policies and decision making with respect to PORT II, but does not control. The Company made its investment through PORT OP, of which the Company owns 91.9% of PORT II OP as of March 31, 2022. As of March 31, 2022, the Company has concluded that PORT II OP qualifies as a VIE because there is insufficient equity at risk to finance the entity’s activities and the entity is structured with non-substantive voting rights. The Company concluded it is not the primary beneficiary of this VIE since it does not have the power to direct the activities that most significantly impact the entity’s economic performance and will account for its investment under the equity method of accounting. During the three months ended March 31, 2022 and 2021, the Company recognized a $45,000 loss and $0, respectively, related to this investment. |
SUPPLEMENTAL CASH FLOW AND SIGN
SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES | 3 Months Ended |
Mar. 31, 2022 | |
Supplemental Cash Flow and Significant Noncash Transaction Disclosures [Abstract] | |
SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES | SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES Supplemental cash flow and significant noncash transaction disclosures were as follows (in thousands): Three Months Ended March 31, 2022 2021 Supplemental Disclosure of Cash Flow Information: Interest paid, net of capitalized interest of $479 and $559 for the three months ended March 31, 2022 and 2021, respectively $ 10,950 $ 11,227 Supplemental Disclosure of Significant Noncash Transaction: Accrued improvements to real estate 2,685 3,906 Redeemable common stock payable 3,064 11 Distributions paid to common stockholders through common stock issuances 99,093 — |
REPORTING SEGMENTS
REPORTING SEGMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
REPORTING SEGMENTS | REPORTING SEGMENTS The Company recognizes three reporting segments for the three months ended March 31, 2022 and 2021 and consists of strategic opportunistic properties, single-family homes and hotels. All corporate related costs are included in the strategic opportunistic properties segment to align with how financial information is presented to the chief operating decision maker. The selected financial information for reporting segments for the three months ended March 31, 2022 and 2021 are as follows (in thousands): Three Months Ended March 31, 2022 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total revenues $ 26,867 $ 5,743 $ 5,917 $ 38,527 Total expenses (27,076) (6,504) (7,412) (40,992) Total other income (4,589) (42) 2,367 (2,264) Net (loss) income $ (4,798) $ (803) $ 872 $ (4,729) Three Months Ended March 31, 2021 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total revenues $ 31,063 $ 5,306 $ 2,575 $ 38,944 Total expenses (31,594) (6,184) (5,651) (43,429) Total other income 10,504 23 — 10,527 Net income (loss) $ 9,973 $ (855) $ (3,076) $ 6,042 Total assets and goodwill related to the reporting segments as of March 31, 2022 and December 31, 2021 are as follows (in thousands): March 31, 2022 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total assets $ 1,199,749 $ 208,737 $ 149,809 $ 1,558,295 Goodwill 9,489 — 4,045 13,534 December 31, 2021 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total assets (1) $ 1,223,122 $ 211,050 $ 150,447 $ 1,584,619 Goodwill (1) 9,489 — 4,045 13,534 _____________________ (1) During the year ended December 31, 2021, the Company recorded impairment charges on real estate and related intangibles and on goodwill of $11.0 million and $2.8 million, respectively, related to the Strategic Opportunistic Properties segment. |
PORT MEZZANINE EQUITY
PORT MEZZANINE EQUITY | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
PORT MEZZANINE EQUITY | PORT MEZZANINE EQUITY The Company has authorized and issued preferred stock from a subsidiary. The Company has elected to use the measurement method described under ASC 480-10-S99-3A, paragraph 15(b), resulting in the common and preferred stock being classified in mezzanine equity and measured based on the estimated future redemption value as of March 31, 2021. On November 6, 2019, PORT issued 15,000 shares out of its available 25,000,000 shares of Series A Cumulative Convertible Redeemable Preferred Stock for gross proceeds of $1,000 per share resulting in net proceeds of $15.0 million before issuance costs. The shares provide for an annual dividend of 6% payable quarterly, which increases to 12% if all shares are not redeemed by the Company immediately following the redemption date. However, the 12% dividend rate does not apply until the aggregate number of shares selected for redemption do not constitute 10% or more of all outstanding shares. The shares may be redeemed by the holders beginning on November 4, 2021 for $1,000 per share plus all accrued but unpaid dividends through the redemption date, or after November 4, 2022 for $1,120 per share plus all accrued but unpaid dividends through the redemption date. In addition, after November 4, 2020, the shares are redeemable at the Company’s option, at any time or from time to time, at a redemption price of $1,120 per share plus unpaid accrued dividends. Additionally, if the common shares of PORT are publicly traded, the holder may elect to convert its preferred shares into PORT common shares based on a value of the preferred shares of $1,120 per share plus unpaid accrued dividends, and a conversion price of the common shares as stated in the agreement. On November 22, 2019, PORT issued 125 shares of its Series B Cumulative Redeemable Preferred Stock for gross proceeds of $1,000 per share resulting in net proceeds of $0.1 million after issuance costs. The shares provide for an annual dividend of 12.5% payable semiannually. The shares may be redeemed by the holders for $1,000 per share. The following is a reconciliation of the Company’s noncontrolling cumulative convertible redeemable preferred stock for the three months ended March 31, 2022 and 2021 (dollars in thousands): Series A Preferred Stock Series B Preferred Stock Shares Amounts Shares Amounts Balance, December 31, 2021 15,000 $ 15,134 125 $ 99 Dividends Available Upon Redemption — 191 — — Dividends Paid — (191) — — Balance, March 31, 2022 15,000 $ 15,134 125 $ 99 Series A Preferred Stock Series B Preferred Stock Shares Amounts Shares Amounts Balance, December 31, 2020 15,000 $ 15,134 125 $ 99 Dividends Available Upon Redemption — 225 — — Dividends Paid — (225) — — Balance, March 31, 2021 15,000 $ 15,134 125 $ 99 On July 1, 2020, the Company acquired, through its subsidiaries, Battery Point. Battery Point is a real estate investment trust that owned, at the time of acquisition, 559 single-family rental homes throughout the Midwestern and Southeastern United States. All of these assets are held by the Company through its subsidiary, PORT OP. The Company acquired Battery Point by acquiring all the 1,000,000 outstanding shares of Battery Point common stock from BPT Holdings, LLC (“BPT Holdings”), a partially owned subsidiary of the Advisor. The Advisor is the Company’s external advisor and is owned and controlled by Keith D. Hall, the Company’s Chief Executive Officer and a director, and Peter M. McMillan, the Company’s President and Chairman of the Board. In exchange, BPT Holdings received 510,816 common equity units in PORT OP, approximately 4.5% of the outstanding common equity units, as of July 1, 2020. The value of the interests exchanged was estimated by the participants at approximately $3.0 million. The common equity units issued to BPT Holdings are redeemable after one year at the request of BPT Holdings for all or a portion of the common equity units at a redemption price equal to and in the form of cash based on the unit price of PORT OP. The following table summarizes the redeemable non-controlling interest activity related to the PORT OP equity units held by BPT Holdings for the three months ended March 31, 2022 and 2021 (in thousands): December 31, 2021 $ 2,822 Net loss attributable to redeemable noncontrolling interest (47) Adjustment to redemption value of mezzanine equity redeemable noncontrolling interest 2,231 March 31, 2022 $ 5,006 December 31, 2020 $ 2,968 Net loss attributable to redeemable noncontrolling interest (32) March 31, 2021 $ 2,936 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company owns two hotels, Springmaid Beach Resort and Q&C Hotel. The operation for both hotels are externally managed by third-party hotel operators, in which the Company have contractual obligations under the management agreements. Management Agreement Springmaid Beach Resort The consolidated joint venture entity through which the Company leases the operations for Springmaid Beach Resort has entered into a management agreement with Doubletree Management LLC, an independent third-party hotel operator (the “Operator”) pursuant to which the Operator will manage and operate the Springmaid Beach Resort. The hotel was branded a DoubleTree by Hilton in September 2016 (the “Brand Commencement Date”). The management agreement expires on December 31 of the 20th full year following the Brand Commencement Date. Upon mutual agreement, the parties may extend the term of the agreement for two successive periods of five years each. If an event of default occurs and continues beyond any applicable notice and cure periods set forth in the management agreement, the non-defaulting party generally has, among other remedies, the option of terminating the management agreement upon written notice to the defaulting party with no termination fee payable to Doubletree. In addition, the Company has the right to terminate the management agreement without the payment of a termination fee if Doubletree fails to achieve certain criteria relating to the performance of the hotel for any two consecutive years following the Brand Commencement Date. Under certain circumstances following a casualty or condemnation event, either party may terminate the management agreement provided Doubletree receives a termination fee an amount equal to two years of the base fee. The Company is permitted to terminate the management agreement upon a sale, lease or other transfer of the Springmaid Beach Resort any time so long as the buyer is approved for, and enters into a DoubleTree by Hilton franchise agreement for the balance of the agreement’s term. Finally, the Company is restricted in its ability to assign the management agreement upon a sale, lease or other transfer the Springmaid Beach Resort unless the transferee is approved by Doubletree to assume the management agreement. Pursuant to the management agreement the Operator receives the following fees: • a base fee, which is a percentage of total operating revenue that starts at 2.5% and increases to 2.75% in the second year following the Brand Commencement Date and further increases in the third year following the Brand Commencement Date and thereafter to 3.0%; • a campground area management fee, which is 2% of any campground revenue; • an incentive fee, which is 15% of operating cash flow (after deduction for capital renewals reserve and the joint venture owner’s priority, which is 12% of the joint venture owner’s total investment); • an additional services fee in the amount reasonably determined by the Operator from time to time; and • a brand services fee in the amount of 4% of total rooms revenue, and an other brand services fee in an amount determined by the Operator from time to time. The management agreement contains specific standards for the operation and maintenance of the hotel, which allows the Operator to maintain uniformity in the system created by the Operator’s franchise. Such standards generally regulate the appearance of the hotel, quality and type of goods and services offered, signage and protection of trademarks. Compliance with the management agreement will require the Company to make significant expenditures for capital improvements. During each of the three months ended March 31, 2022 and 2021, the Company incurred $0.1 million of fees related to the management agreement, which are included in hotel expenses on the accompanying consolidated statements of operations. Q&C Hotel A wholly owned subsidiary of the joint venture through which the Company leases the operations of the Q&C Hotel (“Q&C Hotel Operations”) has entered into a management agreement with Encore Hospitality, LLC (“Encore Hospitality”), an affiliate of the joint venture partner, pursuant to which Encore Hospitality will manage and operate the Q&C Hotel. The management agreement expires on December 17, 2035. Subject to certain conditions, Encore Hospitality may extend the term of the agreement for a period of five years. Pursuant to the management agreement Encore Hospitality will receive a base fee, which is 4.0% of gross revenue (as defined in the management agreement). During the three months ended March 31, 2022 and 2021, the Company incurred $0.2 million of fees related to the management agreement, which are included in hotel expenses on the accompanying consolidated statements of operations. Q&C Hotel Operations has also entered into a franchise agreement with Marriott International (“Marriott”) pursuant to which Marriott has granted Q&C Hotel Operations a limited, non-exclusive license to establish and operate the Q&C Hotel using certain of Marriott’s proprietary marks and systems and the hotel was branded as a Marriott Autograph Collection hotel on May 25, 2016. The franchise agreement will expire on May 25, 2041. Pursuant to the franchise agreement, Q&C Hotel Operations pays Marriott a monthly franchise fee equal to a percent of gross room sales on a sliding scale that is initially 2% and increases to 5% on May 25, 2019 and a monthly marketing fund contribution fee equal to 1.5% of the Q&C Hotel’s gross room sales. In addition, the franchise agreement requires the maintenance of a reserve account to fund all renovations at the hotel based on a percentage of gross revenues which starts at 2% of gross revenues and increases to 5% of gross revenues on May 25, 2019. Q&C Hotel Operations is also responsible for the payment of certain other fees, charges and costs as set forth in the agreement. During each of the three months ended March 31, 2022 and 2021, the Company incurred $0.1 million of fees related to the Marriott franchise agreement, which are included in hotel expenses on the accompanying consolidated statement of operations. In addition, in connection with the execution of the franchise agreement, SOR US Properties II is providing an unconditional guarantee that all Q&C Hotel Operations’ obligations under the franchise agreement will be punctually paid and performed. Finally, certain transfers of the Q&C Hotel or an ownership interest therein are subject to a notice and consent requirement, and the franchise agreement further provides Marriott with a right of first refusal with respect to a sale of the hotel to a competitor of Marriott. Lease Obligations As of March 31, 2022, the Company’s lease and rights to a leasehold interest with respect to 210 West 31st, which was accounted for as a finance lease, are included in the consolidated balance sheet as follows: Right-of-use asset (included in real estate held for investment, net $ 8,074 Lease obligation (included in other liabilities 9,381 Remaining lease term 91.8 years Discount rate 4.8 % The components of lease expense were as follows: Interest on lease obligation 111 As of March 31, 2022, the Company had a leasehold interest expiring on 2114. Future minimum lease payments owed by the Company under the finance lease as of March 31, 2022 are as follows (in thousands): April 1, 2022 through December 31, 2022 $ 270 2023 360 2024 360 2025 393 2026 396 Thereafter 52,167 Total expected minimum lease obligations 53,946 Less: Amount representing interest (1) (44,565) Present value of net minimum lease payments (2) $ 9,381 _____________________ (1) Interest includes the amount necessary to reduce the total expected minimum lease obligations to present value calculated at the Company’s incremental borrowing rate at acquisition. (2) The present value of net minimum lease payments are presented in other liabilities in the accompanying consolidated balance sheets. Economic Dependency The Company is dependent on the Advisor for certain services that are essential to the Company, including the identification, evaluation, negotiation, origination, acquisition and disposition of investments; management of the daily operations of the Company’s investment portfolio; and other general and administrative responsibilities. In the event that the Advisor is unable to provide these services, the Company will be required to obtain such services from other sources. Environmental As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. Although there can be no assurance, the Company is not aware of any environmental liability that could have a material adverse effect on its financial condition or results of operations as of March 31, 2021. However, changes in applicable environmental laws and regulations, the uses and conditions of properties in the vicinity of the Company’s properties, the activities of its tenants and other environmental conditions of which the Company is unaware with respect to the properties could result in future environmental liabilities. Legal Matters |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The Company evaluates subsequent events up until the date the consolidated financial statements are issued. Georgia 400 Mortgage Loan Deposit On April 4, 2022, the Company paid a deposit of $20.4 million to the lender of the Georgia 400 Center Mortgage Loan as a result of being out of compliance with the debt service coverage requirement and required a cash sweep. Additionally, the Company was unable to be in compliance with the debt service coverage requirement within 180 days of the cash sweep initiation. Series B Debentures On May 2, 2022, the Company, through Pacific Oak SOR BVI, raised approximately $95.3 million (foreign currency denominated as approximately 320.4 million Israeli new Shekels at a price of 0.96 for every 1) of additional Series B Debentures to Israeli investors pursuant to a private offering registered with the Israel Securities Authority. The Series B Debentures would be identical in the terms and pari passu to the existing bonds discussed in Note 6. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the FASB Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. |
Principles of Consolidation | The consolidated financial statements include the accounts of the Company, REIT Holdings, the Operating Partnership, Pacific Oak SOR BVI and their direct and indirect wholly owned subsidiaries, joint ventures in which the Company has a controlling interest and VIEs in which the Company is the primary beneficiary. All significant intercompany balances and transactions are eliminated in consolidation. |
Reclassifications | Certain prior period amounts have been reclassified to conform to our current period presentation. In that regard, we have reclassified held for sale activity related to dispositions in our consolidated balance sheets as of December 31, 2021. |
Use of Estimates | The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. |
Restricted Cash | Restricted cash is comprised of escrow deposits for future real estate sales and lender impound reserve accounts on the Company’s borrowings for security deposits, property taxes, insurance, debt service obligations and capital improvements and replacements. |
Segments | The Company operates in three reportable business segments: opportunistic real estate and real estate-related investments, single-family homes, and hotels, which is how the Company's management manages the business. In general, the Company intends to hold its investments in opportunistic real estate and other real estate-related assets for capital appreciation. Traditional performance metrics of opportunistic real estate and other real estate-related assets may not be meaningful as these investments are generally non-stabilized and do not provide a consistent stream of interest income or rental revenue. These investments exhibit similar long-term financial performance and have similar economic characteristics. These investments typically involve a higher degree of risk and do not provide a constant stream of ongoing cash flows. As a result, the Company’s management views opportunistic real estate and other real estate-related assets as similar investments and aggregated into one reportable business segment. The Company owns single-family homes in 18 markets and are all aggregated into one reportable business segment due to the homes being stabilized, having high occupancy rates and have similar economic characteristics. Additionally, the Company owns two hotels and are aggregated into one reportable business segment due to the nature of the hotel business with short-term stays. |
Per Share Data | We determine basic earnings per share and basic earnings per unit based on the weighted average number of shares of common stock or units, as applicable, outstanding during the period and we consider any participating securities, including unvested restricted stock, for purposes of applying the two-class method. We determine diluted earnings per share and diluted earnings per unit based on the weighted average number of shares of common stock or units, as applicable, outstanding combined with the incremental weighted average number of shares or units, as applicable, that would have been outstanding assuming all potentially dilutive securities were converted into shares of common stock or units, as applicable, at the earliest date possible. The noncontrolling Series A convertible redeemable preferred shares of Pacific Oak Residential Trust, Inc. (“PORT”) were not included as the shares are contingent on PORT being public. |
Square Footage, Occupancy and Other Measures | Any references to square footage, occupancy or annualized base rent are unaudited and outside the scope of the Company’s independent registered public accounting firm’s review of the Company’s financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board. |
Recently Issued Accounting Standards Updates | On March 12, 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting , and on January 11, 2021, issued ASU 2021-01, Reference Rate Reform (Topic 848) – Scope , both of which provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference LIBOR or other reference rates expected to be discontinued because of reference rate reform. These ASUs are effective through December 31, 2022. The Company has not adopted any of the optional expedients or exceptions through March 31, 2022, but will continue to evaluate the possible adoption of any such expedients or exceptions during the effective period as circumstances evolve |
Fair Value Measurement | Disclosure of the fair value of financial instruments is based on pertinent information available to the Company as of the period end and requires a significant amount of judgment. This has made the estimation of fair values difficult and, therefore, both the actual results and the Company’s estimate of value at a future date could be materially different. |
REAL ESTATE HELD FOR INVESTME_2
REAL ESTATE HELD FOR INVESTMENT (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Real Estate [Abstract] | |
Schedule of Real Estate Investments | The following table summarizes the Company’s real estate held for investment as of March 31, 2022 and December 31, 2021, respectively (in thousands): March 31, 2022 December 31, 2021 Land $ 276,608 $ 275,683 Buildings and improvements 1,021,399 1,017,465 Tenant origination and absorption costs 42,159 43,375 Total real estate, cost 1,340,166 1,336,523 Accumulated depreciation and amortization (137,932) (127,280) Total real estate, net $ 1,202,234 $ 1,209,243 |
Schedule of Future Minimum Rental Income for Company's Properties | As of March 31, 2022, the future minimum rental income from the Company’s properties, excluding apartment leases, under non-cancelable operating leases was as follows (in thousands): April 1, 2022 through December 31, 2022 $ 46,626 2023 55,716 2024 49,067 2025 38,581 2026 26,872 Thereafter 62,406 $ 279,268 |
Schedule of Real Estate by Industry | The Company’s highest tenant industry concentrations (greater than 10% of annualized base rent) were as follows: Industry Number of Tenants Annualized Base Rent (1) (in thousands) Percentage of Professional, Scientific, and Technical Services 44 $ 8,375 12.8 % Public Administration 12 7,592 11.6 % Computer Systems Design 28 6,971 10.6 % $ 22,938 35.0 % |
Schedule of Hotel Revenue and Expense | The following table provides detailed information regarding the Company’s hotel revenues for its two hotel properties during the three months ended March 31, 2022 and 2021 (in thousands): Three Months Ended March 31, 2022 2021 Hotel revenues: Room $ 4,295 $ 1,673 Food, beverage and convention services 280 296 Campground 793 243 Other 549 363 Hotel revenues $ 5,917 $ 2,575 |
Schedule of Contract with Customer, Contract Asset, Contract Liability, and Receivable | The following table summarizes the Company’s contract liabilities, which are comprised of hotel advanced deposits and deferred proceeds received from the buyers of the Park Highlands land sales and another developer for the value of land that was contributed to a master association that is consolidated by the Company, which are included in other liabilities in the accompanying consolidated balance sheets, as of March 31, 2022 and December 31, 2021 (in thousands): March 31, 2022 December 31, 2021 Contract liability $ 20,946 $ 7,313 Revenue recognized in the period from: Amounts included in contract liability at the beginning of the period $ 134 $ 159 |
TENANT ORIGINATION AND ABSORP_2
TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract] | |
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities | As of March 31, 2022 and December 31, 2021, the Company’s tenant origination and absorption costs, above-market lease assets and below-market lease liabilities (excluding fully amortized assets and liabilities and accumulated amortization) were as follows (in thousands): Tenant Origination and Above-Market Below-Market March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Cost $ 42,159 $ 43,375 $ 4,138 $ 4,138 $ (6,622) $ (6,719) Accumulated Amortization (21,976) (20,738) (1,590) (1,496) 2,892 2,639 Net Amount $ 20,183 $ 22,637 $ 2,548 $ 2,642 $ (3,730) $ (4,080) |
Amortization of Tenant Origination and Absorption Costs, Above-Market Leases and Below-Market Lease Liabilities | Increases (decreases) in net income as a result of amortization of the Company’s tenant origination and absorption costs, above-market lease assets and below-market lease liabilities for the three months ended March 31, 2022 and 2021 were as follows (in thousands): Tenant Origination and Above-Market Below-Market For the Three Months Ended March 31, For the Three Months Ended March 31, For the Three Months Ended March 31, 2022 2021 2022 2021 2022 2021 Amortization $ (2,490) $ (5,222) $ (94) $ (234) $ 350 $ 560 As of March 31, 2022 and December 31, 2021, the Company had recorded a housing subsidy intangible asset, net of amortization, which is included in prepaid expenses and other assets in the accompanying balance sheets of $1.9 million. During both of the three months ended March 31, 2022 and 2021, the Company recorded amortization expense of $18,000 related to the housing subsidy intangible asset. Additionally, as of March 31, 2022 and December 31, 2021, the Company had recorded tax abatement intangible assets, net of amortization, on real estate investments, which are included in prepaid expenses and other assets in the accompanying balance sheets, of $0.6 million and $0.7 million, respectively. During the three months ended March 31, 2022 and 2021, the Company recorded amortization expense of $0.1 million and $0.3 million related to tax abatement intangible assets, respectively. The remaining unamortized balance for these outstanding intangible assets and liabilities as of March 31, 2022 will be amortized for the years ending December 31 as follows (in thousands): Tenant Origination and Above-Market Below-Market Housing Subsidy Tax Abatements April 1, 2022 through December 31, 2022 $ (4,875) $ (274) $ 1,029 $ (53) $ (352) 2023 (5,004) (356) 1,102 (71) (229) 2024 (3,787) (355) 835 (71) (6) 2025 (2,521) (339) 552 (71) — 2026 (1,224) (309) 139 (71) — Thereafter (2,772) (915) 73 (1,536) — $ (20,183) $ (2,548) $ 3,730 $ (1,873) $ (587) Weighted-Average Remaining Amortization Period 4.6 years 8.1 years 3.3 years 26.6 years 1.3 years |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The remaining unamortized balance for these outstanding intangible assets and liabilities as of March 31, 2022 will be amortized for the years ending December 31 as follows (in thousands): Tenant Origination and Above-Market Below-Market Housing Subsidy Tax Abatements April 1, 2022 through December 31, 2022 $ (4,875) $ (274) $ 1,029 $ (53) $ (352) 2023 (5,004) (356) 1,102 (71) (229) 2024 (3,787) (355) 835 (71) (6) 2025 (2,521) (339) 552 (71) — 2026 (1,224) (309) 139 (71) — Thereafter (2,772) (915) 73 (1,536) — $ (20,183) $ (2,548) $ 3,730 $ (1,873) $ (587) Weighted-Average Remaining Amortization Period 4.6 years 8.1 years 3.3 years 26.6 years 1.3 years |
REAL ESTATE EQUITY SECURITIES (
REAL ESTATE EQUITY SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Real Estate Equity Securities | The following table sets forth the number of shares owned by the Company and the related carrying value of the shares as of March 31, 2022 and December 31, 2021 (dollars in thousands): March 31, 2022 December 31, 2021 Real Estate Equity Security Number of Shares Owned Total Carrying Value Number of Shares Owned Total Carrying Value Keppel Pacific Oak US REIT 64,165,352 $ 47,162 64,165,352 $ 51,332 Franklin Street Properties Corp. 6,915,089 40,799 6,915,089 41,145 Plymouth Industrial REIT, Inc. 613,085 16,614 613,085 19,619 71,693,526 $ 104,575 71,693,526 $ 112,096 |
Gain (Loss) on Investments | The following summarizes the portion of gain and loss for the period related to real estate equity securities held during the three months ended March 31, 2022 and 2021 (in thousands): Three Months Ended March 31, 2022 2021 Net (loss) gain recognized during the period on real estate equity securities $ (7,521) $ 10,753 Less net gain recognized during the period on real estate equity securities sold during the period — (225) Unrealized (loss) gain recognized during the reporting period on real estate equity securities held at the end of the period $ (7,521) $ 10,528 |
NOTES AND BOND PAYABLE (Tables)
NOTES AND BOND PAYABLE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Notes and Bonds Payable [Abstract] | |
Schedule of Long-term Debt Instruments | As of March 31, 2022 and December 31, 2021, the Company’s notes and bonds payable consisted of the following (dollars in thousands): Book Value as of March 31, 2022 Book Value as of December 31, 2021 Contractual Interest Rate as of March 31, 2022 Effective Interest Rate at March 31, 2022 (1) Payment Type (2) Maturity Date (3) Richardson Portfolio Mortgage Loan $ 19,190 $ 28,470 Floating Rate + 2.50% 2.95% Principal & Interest 11/01/2022 Park Centre Mortgage Loan 26,185 26,185 Floating Rate + 1.75% 2.20% Interest Only 06/27/2022 1180 Raymond Mortgage Loan (4) 31,070 31,070 Floating Rate + 2.25% 2.70% Interest Only 12/01/2023 Pacific Oak SOR BVI Series B Debentures (5) 264,503 271,978 3.93% 3.93% (5) 01/31/2026 Crown Pointe Mortgage Loan 53,758 52,315 Floating Rate + 2.30% 2.75% Interest Only 04/01/2025 The Marq Mortgage Loan 61,683 61,874 Floating Rate + 1.55% 2.00% Principal & Interest 06/06/2022 Eight & Nine Corporate Centre Mortgage Loan 48,395 48,545 Floating Rate + 1.60% 2.05% Principal & Interest 06/08/2022 Georgia 400 Center Mortgage Loan 61,154 61,154 Floating Rate + 1.55% 2.00% Interest Only 05/22/2023 PORT Mortgage Loan 1 51,302 51,302 4.74% 4.74% Interest Only 10/01/2025 PORT Mortgage Loan 2 10,523 10,523 4.72% 4.72% Interest Only 03/01/2026 PORT MetLife Loan 60,000 60,000 3.90% 3.90% Interest Only 04/10/2026 Springmaid Beach Resort Mortgage Loan 55,143 55,491 Floating Rate + 2.25% (6) 5.75% Principal & Interest 08/12/2022 Q&C Hotel Mortgage Loan 25,000 25,000 Floating Rate + 2.50% (7) 4.50% Principal & Interest 12/23/2022 Lincoln Court Mortgage Loan (4) 34,524 34,623 Floating Rate + 1.75% 2.20% Principal & Interest 04/01/2022 (8) Lofts at NoHo Commons Mortgage Loan 74,536 74,536 Floating Rate + 2.18% (9) 3.93% Interest Only 09/09/2022 210 West 31st Street Mortgage Loan (4) 7,425 8,850 Floating Rate + 3.00% 3.45% Principal & Interest 06/16/2022 Oakland City Center Mortgage Loan 95,747 96,075 Floating Rate + 1.75% 2.20% Principal & Interest 09/01/2022 Madison Square Mortgage Loan 17,500 17,500 4.63% 4.63% Interest Only 10/07/2024 Total Notes and Bonds Payable principal outstanding 997,638 1,015,491 Discount on Notes and Bonds Payable, net (10) (7,130) (8,146) Deferred financing costs, net (8,577) (8,396) Total Notes and Bonds Payable, net $ 981,931 $ 998,949 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of March 31, 2022. Effective interest rate is calculated as the actual interest rate in effect as of March 31, 2022 (consisting of the contractual interest rate and contractual floor rates), using interest rate indices at March 31, 2022, where applicable. (2) Represents the payment type required under the loan as of March 31, 2022. Certain future monthly payments due under this loan also include amortizing principal payments. For more information of the Company’s contractual obligations under its notes and bonds payable, see five-year maturity table below. (3) Represents the initial maturity date or the maturity date as extended as of March 31, 2022; subject to certain conditions, the maturity dates of certain loans may be extended beyond the date shown. (4) The Company’s notes and bond’s payable are generally non-recourse. These mortgage loans have guarantees over certain balances whereby the Company would be required to make guaranteed payments in the event that the Company turned the property over to the lender. The guarantees are typically 25% of the outstanding loan balance. As of March 31, 2022, the guaranteed amount in the aggregate was $23.8 million. (5) See “Israeli Bond Financing” below. (6) The interest rate is at the higher of one-month LIBOR + 2.25% or 5.77%. (7) The interest rate is at the higher of one-month LIBOR + 2.5% or 4.5%. (8) Subsequent to March 31, 2022, the Company extended the maturity date to August 1, 2022. (9) The floating interest rate is at the higher of one-month LIBOR or 1.75%, plus 2.18% . (10) Represents the unamortized premium/discount on notes and bonds payable due to the above- and below-market interest rates when the debt was assumed. The discount/premium is amortized over the remaining life of the notes and bonds payable. |
Schedule of Maturities of Long-term Debt | The following is a schedule of maturities, including principal amortization payments, for all notes and bonds payable outstanding as of March 31, 2022 (in thousands): April 1, 2022 through December 31, 2022 $ 447,827 2023 92,224 2024 105,668 2025 193,229 2026 158,690 Thereafter — $ 997,638 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | The following table summarizes the notional amounts and other information related to the Company’s derivative instruments as of March 31, 2022. The notional amount is an indication of the extent of the Company’s involvement in the instrument at that time, but does not represent exposure to credit, interest rate or market risks (dollars in thousands): Derivative Instrument Effective Date Maturity Date Notional Value Reference Rate Interest rate cap 09/15/2021 09/15/2022 $ 75,950 One-month LIBOR at 3.50% Interest rate cap 06/21/2019 05/22/2023 $ 51,252 One-month LIBOR at 4.00% Interest rate cap 03/24/2022 04/01/2024 $ 53,758 One-month SOFR at 2.50% |
Schedule of Derivative Instruments in Statement of Financial Position | The following table sets forth the fair value of the Company’s derivative instruments as well as their classification on the consolidated balance sheets as of March 31, 2022 and December 31, 2021 (dollars in thousands): March 31, 2022 December 31, 2021 Derivative Instruments Balance Sheet Location Number of Instruments Fair Value Number of Instruments Fair Value Derivative instruments not designated as hedging instruments Interest rate caps Prepaid expenses and other assets 3 $ 569 2 $ 8 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Face Value, Carrying Amounts and Fair Value | The following were the face values, carrying amounts and fair values of the Company’s financial instruments as of March 31, 2022 and December 31, 2021, which carrying amounts do not approximate the fair values (in thousands): March 31, 2022 December 31, 2021 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial liabilities (Level 3): Notes payable $ 733,135 $ 729,713 $ 727,436 $ 743,513 $ 740,176 $ 740,347 Financial liabilities (Level 1): Pacific Oak SOR BVI Series B Debentures $ 264,503 $ 252,218 $ 262,453 $ 271,978 $ 258,773 $ 274,697 |
Fair Value, Assets Measured on Recurring Basis | As of March 31, 2022, the Company measured the following assets at fair value (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Recurring Basis: Real estate equity securities $ 104,575 $ 104,575 $ — $ — Asset derivative - interest rate caps $ 569 $ — $ 569 $ — As of December 31, 2021, the Company measured the following assets and liabilities at fair value (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Recurring Basis: Real estate equity securities $ 112,096 $ 112,096 $ — $ — Asset derivative - interest rate caps $ 8 $ — $ 8 $ — |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Costs | Pursuant to the terms of the Advisory Agreement, summarized below are the related-party costs incurred by the Company for the three months ended March 31, 2022 and 2021, respectively, and any related amounts payable as of March 31, 2022 and December 31, 2021 (in thousands): Incurred during the three months ended March 31, Payable as of 2022 2021 March 31, 2022 December 31, 2021 Expensed Asset management fees $ 3,127 $ 3,852 $ 3,850 $ 1,903 Property management fees (1) 125 120 31 — Change in subordinated performance fee due upon termination to affiliate (2) — 461 (2) (2) Capitalized Acquisition fees on real estate (3) — 20 — — Disposition fees on real estate 107 — — — Acquisition fee on investment in unconsolidated entities — 29 — — $ 3,359 $ 4,482 $ 3,881 $ 1,903 _____________________ (1) Property management fees are for single-family homes under Battery Point Trust Inc. (“Battery Point”) and paid to a subsidiary of the Advisor (“DayMark”). These fees are included in the line item “Operating, maintenance, and management cost” in the consolidated statement of operations. (2) Change in estimate of fees payable to the Company’s previous advisor, KBS Capital Advisors LLC (“KBS Capital Advisors) due to the termination of the former advisory agreement with KBS Capital Advisors. (3) Acquisition fees associated with asset acquisitions are capitalized, while costs associated with business combinations expensed as incurred. |
INVESTMENT IN UNCONSOLIDATED _2
INVESTMENT IN UNCONSOLIDATED ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investments in Unconsolidated Joint Ventures | As of March 31, 2022 and December 31, 2021, the Company’s investments in unconsolidated entities were composed of the following (dollars in thousands): Number of Properties as of March 31, 2022 Investment Balance as of Joint Venture Location Ownership % March 31, 2022 December 31, 2021 110 William Joint Venture 1 New York, New York 60.0% $ — — 353 Sacramento Joint Venture 1 San Francisco, California 55.0% 49,280 49,916 Pacific Oak Opportunity Zone Fund I 3 Various 46.0% 27,214 27,215 PORT II OP LP 251 Various 91.9% 12,440 11,125 $ 88,934 $ 88,256 |
SUPPLEMENTAL CASH FLOW AND SI_2
SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Supplemental Cash Flow and Significant Noncash Transaction Disclosures [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental cash flow and significant noncash transaction disclosures were as follows (in thousands): Three Months Ended March 31, 2022 2021 Supplemental Disclosure of Cash Flow Information: Interest paid, net of capitalized interest of $479 and $559 for the three months ended March 31, 2022 and 2021, respectively $ 10,950 $ 11,227 Supplemental Disclosure of Significant Noncash Transaction: Accrued improvements to real estate 2,685 3,906 Redeemable common stock payable 3,064 11 Distributions paid to common stockholders through common stock issuances 99,093 — |
REPORTING SEGMENTS (Tables)
REPORTING SEGMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The selected financial information for reporting segments for the three months ended March 31, 2022 and 2021 are as follows (in thousands): Three Months Ended March 31, 2022 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total revenues $ 26,867 $ 5,743 $ 5,917 $ 38,527 Total expenses (27,076) (6,504) (7,412) (40,992) Total other income (4,589) (42) 2,367 (2,264) Net (loss) income $ (4,798) $ (803) $ 872 $ (4,729) Three Months Ended March 31, 2021 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total revenues $ 31,063 $ 5,306 $ 2,575 $ 38,944 Total expenses (31,594) (6,184) (5,651) (43,429) Total other income 10,504 23 — 10,527 Net income (loss) $ 9,973 $ (855) $ (3,076) $ 6,042 Total assets and goodwill related to the reporting segments as of March 31, 2022 and December 31, 2021 are as follows (in thousands): March 31, 2022 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total assets $ 1,199,749 $ 208,737 $ 149,809 $ 1,558,295 Goodwill 9,489 — 4,045 13,534 December 31, 2021 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total assets (1) $ 1,223,122 $ 211,050 $ 150,447 $ 1,584,619 Goodwill (1) 9,489 — 4,045 13,534 _____________________ (1) During the year ended December 31, 2021, the Company recorded impairment charges on real estate and related intangibles and on goodwill of $11.0 million and $2.8 million, respectively, related to the Strategic Opportunistic Properties segment. |
PORT MEZZANINE EQUITY (Tables)
PORT MEZZANINE EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following is a reconciliation of the Company’s noncontrolling cumulative convertible redeemable preferred stock for the three months ended March 31, 2022 and 2021 (dollars in thousands): Series A Preferred Stock Series B Preferred Stock Shares Amounts Shares Amounts Balance, December 31, 2021 15,000 $ 15,134 125 $ 99 Dividends Available Upon Redemption — 191 — — Dividends Paid — (191) — — Balance, March 31, 2022 15,000 $ 15,134 125 $ 99 Series A Preferred Stock Series B Preferred Stock Shares Amounts Shares Amounts Balance, December 31, 2020 15,000 $ 15,134 125 $ 99 Dividends Available Upon Redemption — 225 — — Dividends Paid — (225) — — Balance, March 31, 2021 15,000 $ 15,134 125 $ 99 |
Schedule of Redeemable Non-controlling Interest Activities | The following table summarizes the redeemable non-controlling interest activity related to the PORT OP equity units held by BPT Holdings for the three months ended March 31, 2022 and 2021 (in thousands): December 31, 2021 $ 2,822 Net loss attributable to redeemable noncontrolling interest (47) Adjustment to redemption value of mezzanine equity redeemable noncontrolling interest 2,231 March 31, 2022 $ 5,006 December 31, 2020 $ 2,968 Net loss attributable to redeemable noncontrolling interest (32) March 31, 2021 $ 2,936 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Lease Cost | As of March 31, 2022, the Company’s lease and rights to a leasehold interest with respect to 210 West 31st, which was accounted for as a finance lease, are included in the consolidated balance sheet as follows: Right-of-use asset (included in real estate held for investment, net $ 8,074 Lease obligation (included in other liabilities 9,381 Remaining lease term 91.8 years Discount rate 4.8 % The components of lease expense were as follows: Interest on lease obligation 111 |
Schedule of Finance Lease, Liability, Fiscal Year Maturity | As of March 31, 2022, the Company had a leasehold interest expiring on 2114. Future minimum lease payments owed by the Company under the finance lease as of March 31, 2022 are as follows (in thousands): April 1, 2022 through December 31, 2022 $ 270 2023 360 2024 360 2025 393 2026 396 Thereafter 52,167 Total expected minimum lease obligations 53,946 Less: Amount representing interest (1) (44,565) Present value of net minimum lease payments (2) $ 9,381 _____________________ (1) Interest includes the amount necessary to reduce the total expected minimum lease obligations to present value calculated at the Company’s incremental borrowing rate at acquisition. (2) The present value of net minimum lease payments are presented in other liabilities in the accompanying consolidated balance sheets. |
ORGANIZATION (Details)
ORGANIZATION (Details) - shares | 3 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | Dec. 18, 2015 | |
Organizational Structure [Line Items] | |||
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | |
Common stock, shares issued (in shares) | 104,496,165 | 94,141,251 | |
Operating Partnership | |||
Organizational Structure [Line Items] | |||
Partnership interest in Operating Partnership | 0.10% | ||
Partnership interest in the Operating Partnership and is its sole limited partner | 99.90% | ||
Pacific Oak Strategic Opportunity BVI | |||
Organizational Structure [Line Items] | |||
Common stock, shares authorized (in shares) | 50,000 | ||
Pacific Oak Strategic Opportunity BVI | Operating Partnership | |||
Organizational Structure [Line Items] | |||
Common stock, shares issued (in shares) | 10,000 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)propertymarketsegment | May 06, 2022USD ($) | |
Segment Reporting Information [Line Items] | ||
Maturities, next 12 months | $ | $ 92,224 | |
Number of reportable segments | 3 | |
Subsequent Event | ||
Segment Reporting Information [Line Items] | ||
Maturities, next 12 months | $ | $ 444,000 | |
Hotel | ||
Segment Reporting Information [Line Items] | ||
Number of real estate properties | property | 2 | |
Single-Family Homes | ||
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 1 | |
Single family home markets | market | 18 | |
Hotels | ||
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 1 | |
Mortgages | Minimum | ||
Segment Reporting Information [Line Items] | ||
Long-term debt, term | 3 years | |
Mortgages | Maximum | ||
Segment Reporting Information [Line Items] | ||
Long-term debt, term | 5 years |
REAL ESTATE HELD FOR INVESTME_3
REAL ESTATE HELD FOR INVESTMENT - Additional Information (Details) ft² in Millions | Mar. 31, 2022ft²apropertyunitroomportfolio |
Real Estate Properties [Line Items] | |
Percentage of portfolio occupied | 73.00% |
Office Properties | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 8 |
Undeveloped Land, Portfolio | |
Real Estate Properties [Line Items] | |
Real estate area of undeveloped land | a | 14 |
Rentable square feet | ft² | 3.2 |
Apartment Building | |
Real Estate Properties [Line Items] | |
Number of real estate properties consolidated | 2 |
Rentable square feet | ft² | 0.5 |
Percentage of portfolio occupied | 96.00% |
Number of units in real estate property | unit | 609 |
Residential Home Portfolio | |
Real Estate Properties [Line Items] | |
Number of real estate properties | portfolio | 1 |
Rentable square feet | ft² | 2.5 |
Percentage of portfolio occupied | 92.00% |
Number of units in real estate property | unit | 1,814 |
Office/ Retail Property | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 1 |
Hotel | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 2 |
Number of rooms | room | 649 |
Office Portfolio | |
Real Estate Properties [Line Items] | |
Number of real estate properties | portfolio | 1 |
Office Buildings, Portfolio | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 2 |
Undeveloped Land | |
Real Estate Properties [Line Items] | |
Real estate area of undeveloped land | a | 800 |
Number of investments in real estate | 3 |
REAL ESTATE HELD FOR INVESTME_4
REAL ESTATE HELD FOR INVESTMENT - Schedule of Real Estate Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Real Estate Properties [Line Items] | ||
Total real estate, cost | $ 1,340,166 | $ 1,336,523 |
Accumulated depreciation and amortization | (137,932) | (127,280) |
Total real estate, net | 1,202,234 | 1,209,243 |
Land | ||
Real Estate Properties [Line Items] | ||
Total real estate, cost | 276,608 | 275,683 |
Buildings and improvements | ||
Real Estate Properties [Line Items] | ||
Total real estate, cost | 1,021,399 | 1,017,465 |
Tenant Origination and Absorption Costs | ||
Real Estate Properties [Line Items] | ||
Total real estate, cost | $ 42,159 | $ 43,375 |
REAL ESTATE HELD FOR INVESTME_5
REAL ESTATE HELD FOR INVESTMENT - Operating Leases, Additional Information (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022USD ($)tenant | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Operating Leased Assets [Line Items] | |||
Recognition of deferred revenue, net of discontinued operations | $ 1.1 | $ 1.1 | |
Deferred rent receivables | 16.7 | $ 16.3 | |
Incentive to lessee | $ 3 | 3.3 | |
Number of tenants | tenant | 300 | ||
Other Liabilities | |||
Operating Leased Assets [Line Items] | |||
Security deposit liability | $ 6.8 | $ 6 | |
Maximum | |||
Operating Leased Assets [Line Items] | |||
Operating lease, term | 13 years 3 months 18 days | ||
Weighted Average | |||
Operating Leased Assets [Line Items] | |||
Operating lease, term | 3 years 9 months 18 days | ||
Apartment Building | |||
Operating Leased Assets [Line Items] | |||
Operating lease, term | 1 year |
REAL ESTATE HELD FOR INVESTME_6
REAL ESTATE HELD FOR INVESTMENT - Future Minimum Rental Income (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Real Estate [Abstract] | |
April 1, 2022 through December 31, 2022 | $ 46,626 |
2023 | 55,716 |
2024 | 49,067 |
2025 | 38,581 |
2026 | 26,872 |
Thereafter | 62,406 |
Future minimum rental income | $ 279,268 |
REAL ESTATE HELD FOR INVESTME_7
REAL ESTATE HELD FOR INVESTMENT - Highest Tenant Industry Concentrations- Greater than 10% of Annual Base Rent (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($)tenant | |
Concentration Risk [Line Items] | |
Number of tenants | tenant | 300 |
Annualized Base Rent | $ 22,938 |
Professional, Scientific, and Technical Services | |
Concentration Risk [Line Items] | |
Annualized Base Rent | 8,375 |
Public Administration | |
Concentration Risk [Line Items] | |
Annualized Base Rent | 7,592 |
Computer Systems Design | |
Concentration Risk [Line Items] | |
Annualized Base Rent | $ 6,971 |
Product Concentration Risk | Professional, Scientific, and Technical Services | Revenue Benchmark | |
Concentration Risk [Line Items] | |
Percentage of Annualized Base Rent | 12.80% |
Product Concentration Risk | Public Administration | Revenue Benchmark | |
Concentration Risk [Line Items] | |
Percentage of Annualized Base Rent | 11.60% |
Product Concentration Risk | Computer Systems Design | Revenue Benchmark | |
Concentration Risk [Line Items] | |
Percentage of Annualized Base Rent | 10.60% |
Product Concentration Risk | Industry | Revenue Benchmark | |
Concentration Risk [Line Items] | |
Percentage of Annualized Base Rent | 35.00% |
REAL ESTATE HELD FOR INVESTME_8
REAL ESTATE HELD FOR INVESTMENT - Hotel Revenue and Expenses (Details) - Hotel - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues: | ||
Revenue | $ 5,917 | $ 2,575 |
Room | ||
Revenues: | ||
Revenue | 4,295 | 1,673 |
Food, beverage and convention services | ||
Revenues: | ||
Revenue | 280 | 296 |
Campground | ||
Revenues: | ||
Revenue | 793 | 243 |
Other | ||
Revenues: | ||
Revenue | $ 549 | $ 363 |
REAL ESTATE HELD FOR INVESTME_9
REAL ESTATE HELD FOR INVESTMENT - Contract Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Product Liability Contingency [Line Items] | |||
Amounts included in contract liability at the beginning of the period | $ 1,055 | $ 1,085 | |
Other Liabilities | |||
Product Liability Contingency [Line Items] | |||
Contract liability | 20,946 | $ 7,313 | |
Amounts included in contract liability at the beginning of the period | $ 134 | $ 159 |
REAL ESTATE HELD FOR INVESTM_10
REAL ESTATE HELD FOR INVESTMENT - Geographic Concentration Risk (Details) - Assets, Total - Geographic Concentration Risk | 3 Months Ended |
Mar. 31, 2022 | |
California | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 23.00% |
Georgia | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 10.40% |
REAL ESTATE HELD FOR INVESTM_11
REAL ESTATE HELD FOR INVESTMENT - Recent Real Estate Sale (Details) $ in Thousands | Jan. 24, 2022USD ($)ft²property | Mar. 31, 2022USD ($)property | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) |
Real Estate Properties [Line Items] | ||||
Real estate held for sale, net | $ 0 | $ 5,556 | ||
Accumulated depreciation and amortization | 137,932 | $ 127,280 | ||
Gain on sale of real estate | $ 3,523 | $ 21 | ||
Greenway Buildings Mortgage Loan | ||||
Real Estate Properties [Line Items] | ||||
Extinguishment of debt | $ 9,100 | |||
Office Properties | ||||
Real Estate Properties [Line Items] | ||||
Number of real estate properties | property | 8 | |||
Office Properties | Greenway Buildings | ||||
Real Estate Properties [Line Items] | ||||
Real estate held for sale, net | 5,600 | |||
Accumulated depreciation and amortization | $ 3,200 | |||
Greenway Buildings | Office Properties | Disposed of by Sale | ||||
Real Estate Properties [Line Items] | ||||
Number of real estate properties | property | 2 | |||
Net rentable area (in square feet) | ft² | 141,950 | |||
Consideration | $ 11,000 | |||
Gain on sale of real estate | $ 3,600 |
REAL ESTATE HELD FOR INVESTM_12
REAL ESTATE HELD FOR INVESTMENT - Park Highlands Land (Details) - Undeveloped Land $ in Millions | Feb. 23, 2022USD ($)a | Nov. 11, 2021USD ($)a |
Real Estate [Line Items] | ||
Area of land (in acres) | 526 | |
Disposed of by Sale | Park Highlands | ||
Real Estate [Line Items] | ||
Area of land (in acres) | 234 | |
Area of land to be sold, original (in acres) | 238 | |
Area of land to be sold, amendment (in acres) | 4 | |
Consideration | $ | $ 124.5 | |
Deposits on real estate sales | $ | $ 13.5 | |
Disposed of by Sale | Park Highlands | Scheduled to Sell in 2022 | ||
Real Estate [Line Items] | ||
Area of land (in acres) | 163 |
TENANT ORIGINATION AND ABSORP_3
TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES - Cost and Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract] | |||
Tenant Origination And Absorption Costs, Cost | $ 42,159 | $ 43,375 | |
Tenant Origination and Absorption Costs, Accumulated Amortization | (21,976) | (20,738) | |
Tenant Origination and Absorption Costs, Net Amount | 20,183 | 22,637 | |
Tenant Origination and Absorption Costs, Amortization | (2,490) | $ (5,222) | |
Above-Market Lease Assets, Cost | 4,138 | 4,138 | |
Above-Market Lease Assets, Accumulated Amortization | (1,590) | (1,496) | |
Above-Market Lease Assets, Net Amount | 2,548 | 2,642 | |
Above-Market Lease Assets, Amortization | (94) | (234) | |
Below-Market Lease Liabilities, Cost | (6,622) | (6,719) | |
Below-Market Lease Liabilities, Accumulated Amortization | 2,892 | 2,639 | |
Below-Market Lease Liabilities, Net Amount | (3,730) | $ (4,080) | |
Below-Market Lease Liabilities, Amortization | $ 350 | $ 560 |
TENANT ORIGINATION AND ABSORP_4
TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Line Items] | |||
Housing Subsidy Intangible Asset | $ 1,900 | $ 1,900 | |
Depreciation and amortization | 12,565 | $ 17,001 | |
Housing Subsidy | |||
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Line Items] | |||
Depreciation and amortization | 18 | 18 | |
Tax Abatements | |||
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Line Items] | |||
Depreciation and amortization | 100 | $ 300 | |
Tax abatement asset | $ 600 | $ 700 |
TENANT ORIGINATION AND ABSORP_5
TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES - Remaining Unamortized Balance (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Below Market Lease, Net, Amortization Income, Fiscal Year Maturity | ||
April 1, 2022 through December 31, 2022 | $ 1,029 | |
2023 | 1,102 | |
2024 | 835 | |
2025 | 552 | |
2026 | 139 | |
Thereafter | 73 | |
Net Amount | 3,730 | $ 4,080 |
Housing Subsidy | ||
Assets, Expected Amortization | ||
April 1, 2022 through December 31, 2022 | (53) | |
2023 | (71) | |
2024 | (71) | |
2025 | (71) | |
2026 | (71) | |
Thereafter | (1,536) | |
Net amount | $ (1,873) | |
Weighted-Average Remaining Amortization Period | 26 years 7 months 6 days | |
Tax Abatements | ||
Assets, Expected Amortization | ||
April 1, 2022 through December 31, 2022 | $ (352) | |
2023 | (229) | |
2024 | (6) | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 0 | |
Net amount | $ (587) | |
Weighted-Average Remaining Amortization Period | 1 year 3 months 18 days | |
Tenant Origination and Absorption Costs | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | ||
April 1, 2022 through December 31, 2022 | $ (4,875) | |
2023 | (5,004) | |
2024 | (3,787) | |
2025 | (2,521) | |
2026 | (1,224) | |
Thereafter | (2,772) | |
Net Amount | $ (20,183) | |
Assets, Expected Amortization | ||
Weighted-Average Remaining Amortization Period | 4 years 7 months 6 days | |
Above-Market Lease Assets | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | ||
April 1, 2022 through December 31, 2022 | $ (274) | |
2023 | (356) | |
2024 | (355) | |
2025 | (339) | |
2026 | (309) | |
Thereafter | (915) | |
Net Amount | $ (2,548) | |
Assets, Expected Amortization | ||
Weighted-Average Remaining Amortization Period | 8 years 1 month 6 days | |
Below-Market Lease Liabilities | ||
Assets, Expected Amortization | ||
Weighted-Average Remaining Amortization Period | 3 years 3 months 18 days |
REAL ESTATE EQUITY SECURITIES -
REAL ESTATE EQUITY SECURITIES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Dividend income from real estate equity securities | $ 2.4 | $ 2.8 |
REAL ESTATE EQUITY SECURITIES_2
REAL ESTATE EQUITY SECURITIES - Shares Owned (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Number of Shares Owned (in shares) | 71,693,526 | 71,693,526 |
Total Carrying Value | $ 104,575 | $ 112,096 |
Kepple Pacific Oak US REIT | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of Shares Owned (in shares) | 64,165,352 | 64,165,352 |
Total Carrying Value | $ 47,162 | $ 51,332 |
Franklin Street Properties Corp. | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of Shares Owned (in shares) | 6,915,089 | 6,915,089 |
Total Carrying Value | $ 40,799 | $ 41,145 |
Plymouth Industrial REIT, Inc. | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of Shares Owned (in shares) | 613,085 | 613,085 |
Total Carrying Value | $ 16,614 | $ 19,619 |
REAL ESTATE EQUITY SECURITIES_3
REAL ESTATE EQUITY SECURITIES - Portion of Gain and Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net (loss) gain recognized during the period on real estate equity securities | $ (7,521) | $ 10,753 |
Less net gain recognized during the period on real estate equity securities sold during the period | 0 | (225) |
Unrealized (loss) gain recognized during the reporting period on real estate equity securities held at the end of the period | $ (7,521) | $ 10,528 |
NOTES AND BOND PAYABLE - Schedu
NOTES AND BOND PAYABLE - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Total Notes and Bonds Payable principal outstanding | $ 997,638 | $ 1,015,491 |
Discount on Notes and Bonds Payable, net | (7,130) | (8,146) |
Deferred financing costs, net | (8,577) | (8,396) |
Notes and bonds payable, net (Note 6) | 981,931 | 998,949 |
Mortgages | Richardson Portfolio Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable, net | $ 19,190 | 28,470 |
Interest rate, effective percentage | 2.95% | |
Mortgages | Richardson Portfolio Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.50% | |
Mortgages | Park Centre Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable, net | $ 26,185 | 26,185 |
Interest rate, effective percentage | 2.20% | |
Mortgages | Park Centre Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% | |
Mortgages | 1180 Raymond Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable, net | $ 31,070 | 31,070 |
Interest rate, effective percentage | 2.70% | |
Mortgages | 1180 Raymond Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.25% | |
Mortgages | Pacific Oak SOR BVI Series B Debentures | ||
Debt Instrument [Line Items] | ||
Notes payable, net | $ 264,503 | 271,978 |
Contractual interest rate, percentage | 3.93% | |
Interest rate, effective percentage | 3.93% | |
Mortgages | Crown Pointe Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable, net | $ 53,758 | 52,315 |
Interest rate, effective percentage | 2.75% | |
Guarantees as percent of outstanding loan balance | 25.00% | |
Amount under guarantees | $ 23,800 | |
Mortgages | Crown Pointe Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.30% | |
Mortgages | The Marq Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable, net | $ 61,683 | 61,874 |
Interest rate, effective percentage | 2.00% | |
Mortgages | The Marq Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.55% | |
Mortgages | Eight & Nine Corporate Centre Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable, net | $ 48,395 | 48,545 |
Interest rate, effective percentage | 2.05% | |
Mortgages | Eight & Nine Corporate Centre Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.60% | |
Mortgages | Georgia 400 Center Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable, net | $ 61,154 | 61,154 |
Interest rate, effective percentage | 2.00% | |
Mortgages | Georgia 400 Center Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.55% | |
Mortgages | PORT Mortgage Loan 1 | ||
Debt Instrument [Line Items] | ||
Notes payable, net | $ 51,302 | 51,302 |
Contractual interest rate, percentage | 4.74% | |
Interest rate, effective percentage | 4.74% | |
Mortgages | PORT Mortgage Loan 2 | ||
Debt Instrument [Line Items] | ||
Notes payable, net | $ 10,523 | 10,523 |
Contractual interest rate, percentage | 4.72% | |
Interest rate, effective percentage | 4.72% | |
Mortgages | PORT MetLife Loan | ||
Debt Instrument [Line Items] | ||
Notes payable, net | $ 60,000 | 60,000 |
Contractual interest rate, percentage | 390.00% | |
Interest rate, effective percentage | 390.00% | |
Mortgages | Springmaid Beach Resort Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable, net | $ 55,143 | 55,491 |
Basis spread on variable rate | 2.25% | |
Interest rate, effective percentage | 5.75% | |
Mortgages | Springmaid Beach Resort Mortgage Loan | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate, effective percentage | 5.77% | |
Mortgages | Springmaid Beach Resort Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.25% | |
Mortgages | Q&C Hotel Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable, net | $ 25,000 | 25,000 |
Interest rate, effective percentage | 4.50% | |
Mortgages | Q&C Hotel Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.50% | |
Mortgages | Lincoln Court Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable, net | $ 34,524 | 34,623 |
Interest rate, effective percentage | 2.20% | |
Mortgages | Lincoln Court Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% | |
Mortgages | Lofts at NoHo Commons Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable, net | $ 74,536 | 74,536 |
Interest rate, effective percentage | 3.93% | |
Mortgages | Lofts at NoHo Commons Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.18% | |
Mortgages | Lofts at NoHo Commons Mortgage Loan | One-month LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% | |
Mortgages | 210 West 31st Street Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable, net | $ 7,425 | 8,850 |
Interest rate, effective percentage | 3.45% | |
Mortgages | 210 West 31st Street Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.00% | |
Mortgages | Oakland City Center Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable, net | $ 95,747 | 96,075 |
Interest rate, effective percentage | 2.20% | |
Mortgages | Oakland City Center Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% | |
Mortgages | Madison Square Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable, net | $ 17,500 | $ 17,500 |
Contractual interest rate, percentage | 4.63% | |
Interest rate, effective percentage | 4.63% |
NOTES AND BOND PAYABLE - Additi
NOTES AND BOND PAYABLE - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | May 06, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Interest expense | $ 9,563 | $ 9,941 | ||
Amortization of deferred financing costs | 680 | 813 | ||
Interest capitalized | 479 | 559 | ||
Interest payable | 3,600 | $ 6,600 | ||
Maturities, next 12 months | 92,224 | |||
Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Maturities, next 12 months | $ 444,000 | |||
Maturities, next 12 months with extension option | $ 309,600 | |||
Undeveloped Land | ||||
Debt Instrument [Line Items] | ||||
Interest capitalized | $ 500 | $ 600 |
NOTES AND BOND PAYABLE - Sche_2
NOTES AND BOND PAYABLE - Schedule of Maturities of Long-term Debt (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Notes and Bonds Payable [Abstract] | |
April 1, 2022 through December 31, 2022 | $ 447,827 |
2023 | 92,224 |
2024 | 105,668 |
2025 | 193,229 |
2026 | 158,690 |
Thereafter | 0 |
Notes and bond payable outstanding | $ 997,638 |
NOTES AND BOND PAYABLE - Recent
NOTES AND BOND PAYABLE - Recent Bond Financing (Details) - Bonds Payable - Series B Debentures $ in Millions | Feb. 16, 2020ILS (₪) | Nov. 08, 2021ILS (₪) | Nov. 08, 2021USD ($) | Nov. 01, 2021ILS (₪) | Nov. 01, 2021USD ($) | Feb. 16, 2020USD ($) |
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | ₪ 254,100,000 | $ 74.1 | ||||
Contractual interest rate, percentage | 3.93% | 3.93% | ||||
Principal of installment payments as percent of face amount | 33.33% | |||||
Public Offering | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | ₪ 536,400,000 | |||||
Proceeds from issuance of debt | ₪ 522,400,000 | $ 166.8 | ||||
Percent of discount at issuance | 2.60% | |||||
Private Offering | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | ₪ 53,600,000 | |||||
Proceeds from issuance of debt | ₪ 52,000,000 | $ 16.7 | ||||
Percent of discount at issuance | 3.10% |
DERIVATIVE INSTRUMENTS (Details
DERIVATIVE INSTRUMENTS (Details) - Not Designated as Hedging Instrument - Interest rate cap | Mar. 31, 2022USD ($)instrument | Dec. 31, 2021USD ($)instrument |
Derivative [Line Items] | ||
Number of Instruments | instrument | 3 | |
Notional Value | $ 75,950,000 | |
Prepaid expenses and other assets | ||
Derivative [Line Items] | ||
Number of Instruments | instrument | 3 | 2 |
Derivative Asset, Fair Value | $ 569,000 | $ 8,000 |
One-month LIBOR | ||
Derivative [Line Items] | ||
Reference Rate | 3.50% | |
Notional Value | $ 51,252,000 | |
One-month LIBOR | ||
Derivative [Line Items] | ||
Reference Rate | 4.00% | |
Notional Value | $ 53,758,000 | |
One-month SOFR | ||
Derivative [Line Items] | ||
Reference Rate | 2.50% |
FAIR VALUE DISCLOSURES - Schedu
FAIR VALUE DISCLOSURES - Schedule of Face Value, Carrying Amounts and Fair Value (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and bond payable, Face Value | $ 733,135,000 | $ 743,513,000 |
Series B Debentures | Pacific Oak SOR BVI Series B Debentures | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and bond payable, Face Value | 264,503,000 | 271,978,000 |
Carrying Amount | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and bond payable, Value | 729,713,000 | 740,176,000 |
Carrying Amount | Series B Debentures | Pacific Oak SOR BVI Series B Debentures | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and bond payable, Value | 252,218,000 | 258,773,000 |
Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and bond payable, Value | 727,436,000 | 740,347,000 |
Fair Value | Series B Debentures | Pacific Oak SOR BVI Series B Debentures | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and bond payable, Value | $ 262,453,000 | $ 274,697,000 |
FAIR VALUE DISCLOSURES - Sche_2
FAIR VALUE DISCLOSURES - Schedule of Assets and Liabilities at Fair Value (Details) - Recurring Basis - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate equity securities | $ 104,575 | $ 112,096 |
Asset derivative | 8 | |
Interest rate cap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset derivative | 569 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate equity securities | 104,575 | 112,096 |
Asset derivative | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate cap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset derivative | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate equity securities | 0 | 0 |
Asset derivative | 8 | |
Significant Other Observable Inputs (Level 2) | Interest rate cap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset derivative | 569 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate equity securities | 0 | 0 |
Asset derivative | $ 0 | |
Significant Unobservable Inputs (Level 3) | Interest rate cap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset derivative | $ 0 |
RELATED PARTY TRANSACTIONS - Co
RELATED PARTY TRANSACTIONS - Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Payable as of | $ 3,881 | $ 1,903 | |
Pacific Oak Capital Advisors LLC | |||
Related Party Transaction [Line Items] | |||
Capitalized | 3,359 | $ 4,482 | |
Payable as of | 3,881 | 1,903 | |
Pacific Oak Capital Advisors LLC | Asset management fees | |||
Related Party Transaction [Line Items] | |||
Expensed | 3,127 | 3,852 | |
Payable as of | 3,850 | 1,903 | |
Pacific Oak Capital Advisors LLC | Property management fees | |||
Related Party Transaction [Line Items] | |||
Expensed | 125 | 120 | |
Payable as of | 31 | 0 | |
Pacific Oak Capital Advisors LLC | Change in subordinated performance fee due upon termination to affiliate | |||
Related Party Transaction [Line Items] | |||
Expensed | 0 | 461 | |
Pacific Oak Capital Advisors LLC | Acquisition fees on real estate | |||
Related Party Transaction [Line Items] | |||
Capitalized | 0 | 20 | |
Payable as of | 0 | 0 | |
Pacific Oak Capital Advisors LLC | Disposition fees on real estate | |||
Related Party Transaction [Line Items] | |||
Capitalized | 107 | 0 | |
Payable as of | 0 | 0 | |
Pacific Oak Capital Advisors LLC | Acquisition fee on investment in unconsolidated entities | |||
Related Party Transaction [Line Items] | |||
Capitalized | 0 | $ 29 | |
Payable as of | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($) $ in Millions | Nov. 01, 2019 | Mar. 31, 2022 | Dec. 31, 2021 |
Related Party Transactions [Abstract] | |||
Period of termination of advisory agreement without cause or penalty | 60 days | ||
Related Party Transaction [Line Items] | |||
Contributions to joint venture | $ 1.2 | ||
353 Sacramento Joint Venture | |||
Related Party Transaction [Line Items] | |||
Due from affiliates | 8.2 | $ 7 | |
Investments | $ 7 | $ 7 |
RELATED PARTY TRANSACTIONS - In
RELATED PARTY TRANSACTIONS - Investment in Pacific Oak Opportunity Zone Fund I (Details) - Pacific Oak Opportunity Zone Fund I $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)unit | Mar. 31, 2021USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||
Number of units in real estate property | unit | 124 | |
Acquisition fee, percent of purchase price fee | 1.50% | |
Investment, purchase price, benchmark | $ 25,000 | |
Acquisition fee of purchase price fee in excess of benchmark purchase price | 1.00% | |
Asset management fee, percent | 0.25% | |
Financing fee as percent of original principal amount of any indebtedness | 0.50% | |
Waived asset management fees | $ 100 | $ 200 |
Asset management fees receivable | $ 100 |
RELATED PARTY TRANSACTIONS - PO
RELATED PARTY TRANSACTIONS - PORT II (Details) - USD ($) $ in Millions | Aug. 31, 2020 | Mar. 31, 2022 |
PORT II OP LP | ||
Schedule of Equity Method Investments [Line Items] | ||
Insufficient fund fees, percent | 50.00% | |
Application fee collected, percent | 100.00% | |
PORT II OP LP | Tier 1 | ||
Schedule of Equity Method Investments [Line Items] | ||
Base fee, percent of rent collections per year | 8.00% | |
PORT II OP LP | Tier 1 | Maximum | ||
Schedule of Equity Method Investments [Line Items] | ||
Base fee, benchmark of rent collections per year | $ 50 | |
PORT II OP LP | Tier 2 | ||
Schedule of Equity Method Investments [Line Items] | ||
Base fee, percent of rent collections per year | 7.00% | |
PORT II OP LP | Tier 2 | Maximum | ||
Schedule of Equity Method Investments [Line Items] | ||
Base fee, benchmark of rent collections per year | $ 75 | |
PORT II OP LP | Tier 2 | Minimum | ||
Schedule of Equity Method Investments [Line Items] | ||
Base fee, benchmark of rent collections per year | $ 50 | |
PORT II OP LP | Tier 3 | ||
Schedule of Equity Method Investments [Line Items] | ||
Base fee, percent of rent collections per year | 6.00% | |
PORT II OP LP | Tier 3 | Minimum | ||
Schedule of Equity Method Investments [Line Items] | ||
Base fee, benchmark of rent collections per year | $ 75 | |
PORT II OP LP | PORT II OP LP | ||
Schedule of Equity Method Investments [Line Items] | ||
Payments to acquire investments | $ 13 | |
Pacific Oak Opportunity Zone Fund I | ||
Schedule of Equity Method Investments [Line Items] | ||
Financing fee as percent of original principal amount of any indebtedness | 0.50% |
INVESTMENT IN UNCONSOLIDATED _3
INVESTMENT IN UNCONSOLIDATED ENTITIES - Investments in Unconsolidated Joint Ventures (Details) $ in Thousands | Mar. 31, 2022USD ($)property | Dec. 31, 2021USD ($) |
Schedule of Equity Method Investments [Line Items] | ||
Investment Balance | $ 88,934 | $ 88,256 |
110 William Joint Venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of Properties | property | 1 | |
Ownership % | 60.00% | |
Investment Balance | $ 0 | 0 |
353 Sacramento Joint Venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of Properties | property | 1 | |
Ownership % | 55.00% | |
Investment Balance | $ 49,280 | 49,916 |
Pacific Oak Opportunity Zone Fund I | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of Properties | property | 3 | |
Ownership % | 46.00% | |
Investment Balance | $ 27,214 | 27,215 |
Pacific Oak Residential Trust II, Inc. | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of Properties | property | 251 | |
Ownership % | 91.90% | |
Investment Balance | $ 12,440 | $ 11,125 |
INVESTMENT IN UNCONSOLIDATED _4
INVESTMENT IN UNCONSOLIDATED ENTITIES - Investments - Additional Information (Details) | 3 Months Ended | |||
Mar. 31, 2022USD ($)unit | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | May 02, 2014aft² | |
Schedule of Equity Method Investments [Line Items] | ||||
Investments in unconsolidated entities (Note 10) | $ 88,934,000 | $ 88,256,000 | ||
Equity in (loss) income of unconsolidated entities | (679,000) | $ 169,000 | ||
110 William JV Partner | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Income from NIP | $ 0 | |||
110 William Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 60.00% | |||
Rentable square feet | ft² | 928,157 | |||
Area of land (in acres) | a | 0.8 | |||
Investments in unconsolidated entities (Note 10) | $ 0 | 0 | ||
110 William Joint Venture | 110 William JV Partner | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 60.00% | |||
110 William Joint Venture | 110 William JV Partner | 110 William Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Noncontrolling interest | 40.00% | |||
Pacific Oak Opportunity Zone Fund I | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 46.00% | |||
Investments in unconsolidated entities (Note 10) | $ 27,214,000 | $ 27,215,000 | ||
Number of units in real estate property | unit | 124 | |||
Acquisition related costs | $ 200,000 |
INVESTMENT IN UNCONSOLIDATED _5
INVESTMENT IN UNCONSOLIDATED ENTITIES - Investment in 353 Sacramento Joint Venture (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Jul. 06, 2017ft²a | |
Migdal Members | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 45.00% | ||
Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 55.00% | ||
353 Sacramento Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 55.00% | ||
Distributions | $ 0 | $ 0.9 | |
Gain (loss) on investments | $ (0.6) | $ 0.2 | |
353 Sacramento Joint Venture | Office Properties | Disposed of by Sale | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 45.00% | ||
Net rentable area (in square feet) | ft² | 284,751 | ||
Area of land (in acres) | a | 0.35 |
INVESTMENT IN UNCONSOLIDATED _6
INVESTMENT IN UNCONSOLIDATED ENTITIES - Investment in Pacific Oak Opportunity Zone Fund I (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022USD ($)unitproperty | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated entities (Note 10) | $ 88,934 | $ 88,256 | |
Pacific Oak Opportunity Zone Fund I | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of units in real estate property | unit | 124 | ||
Investments in unconsolidated entities (Note 10) | $ 27,214 | $ 27,215 | |
Acquisition related costs | $ 200 | ||
Number of joint venture with real estate under development | property | 3 | ||
Loss on investments | $ (100) | $ (200) |
INVESTMENT IN UNCONSOLIDATED _7
INVESTMENT IN UNCONSOLIDATED ENTITIES - PORT II (Details) - PORT II OP LP - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||
Investment acquired (in shares) | 600 | |
Gain (loss) on investments | $ (45,000) | $ 0 |
PORT OP | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership % | 91.90% |
SUPPLEMENTAL CASH FLOW AND SI_3
SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest paid, net of capitalized interest of $479 and $559 for the three months ended March 31, 2022 and 2021, respectively | $ 10,950 | $ 11,227 |
Interest capitalized | 479 | 559 |
Noncash Investing and Financing Items [Abstract] | ||
Accrued improvements to real estate | 2,685 | 3,906 |
Redeemable common stock payable | 3,064 | 11 |
Distributions paid to common stockholders through common stock issuances | $ 99,093 | $ 0 |
REPORTING SEGMENTS (Details)
REPORTING SEGMENTS (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($)segment | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 3 | ||
Income Statement [Abstract] | |||
Total revenues | $ 38,527 | $ 38,944 | |
Total expenses | (40,992) | (43,429) | |
Total other income (loss) | 10,527 | ||
(Loss) income before provision for income taxes | (4,729) | 6,042 | |
Assets and Liabilities held for Sale | |||
Assets | 1,558,295 | $ 1,584,619 | |
Goodwill | 13,534 | 13,534 | |
Impairment of real estate | 11,000 | ||
Strategic Opportunistic Properties | |||
Income Statement [Abstract] | |||
Total revenues | 26,867 | 31,063 | |
Total expenses | (27,076) | (31,594) | |
Total other income (loss) | (4,589) | 10,504 | |
(Loss) income before provision for income taxes | (4,798) | 9,973 | |
Assets and Liabilities held for Sale | |||
Assets | 1,199,749 | 1,223,122 | |
Goodwill | $ 9,489 | 9,489 | |
Impairment of real estate | 2,800 | ||
Single-Family Homes | |||
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 1 | ||
Income Statement [Abstract] | |||
Total revenues | $ 5,743 | 5,306 | |
Total expenses | (6,504) | (6,184) | |
Total other income (loss) | (42) | 23 | |
(Loss) income before provision for income taxes | (803) | (855) | |
Assets and Liabilities held for Sale | |||
Assets | 208,737 | 211,050 | |
Goodwill | $ 0 | 0 | |
Hotels | |||
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 1 | ||
Income Statement [Abstract] | |||
Total revenues | $ 5,917 | 2,575 | |
Total expenses | (7,412) | (5,651) | |
Total other income (loss) | 2,367 | 0 | |
(Loss) income before provision for income taxes | 872 | $ (3,076) | |
Assets and Liabilities held for Sale | |||
Assets | 149,809 | 150,447 | |
Goodwill | $ 4,045 | $ 4,045 |
PORT MEZZANINE EQUITY - Additio
PORT MEZZANINE EQUITY - Additional Information (Details) $ / shares in Units, $ in Millions | Jul. 01, 2020USD ($)portfolioshares | Nov. 22, 2019USD ($)$ / sharesshares | Nov. 06, 2019USD ($)$ / sharesshares | Dec. 31, 2022$ / shares | Nov. 07, 2022$ / shares | Mar. 31, 2022shares | Dec. 31, 2021shares | Nov. 04, 2021$ / shares | Nov. 04, 2020$ / shares |
Class of Stock [Line Items] | |||||||||
Preferred stock, shares authorized (in shares) | shares | 10,000,000 | 10,000,000 | |||||||
Battery Point Trust Inc. | |||||||||
Class of Stock [Line Items] | |||||||||
Shares acquired during period (in shares) | shares | 1,000,000 | ||||||||
Battery Point Trust Inc. | Single Family | |||||||||
Class of Stock [Line Items] | |||||||||
Number of real estate properties | portfolio | 559 | ||||||||
BPT Holdings, LLC | Subsidiaries | Battery Point Trust Inc. | |||||||||
Class of Stock [Line Items] | |||||||||
Common equity units received in transaction (in shares) | shares | 510,816 | ||||||||
Percent of outstanding common equity units received in transaction | 4.50% | ||||||||
Common equity units received in transaction, value | $ | $ 3 | ||||||||
Preferred Class A | Pacific Oak Residential Trust, Inc. | |||||||||
Class of Stock [Line Items] | |||||||||
Issuance of common stock (in shares) | shares | 15,000 | ||||||||
Preferred stock, shares authorized (in shares) | shares | 25,000,000 | ||||||||
Issuance of common stock (in dollars per share) | $ / shares | $ 1,000 | $ 1,000 | |||||||
Issuance of common stock | $ | $ 15 | ||||||||
Dividend rate, percentage | 6.00% | ||||||||
Percent of outstanding shares as benchmark for redemption | 10.00% | ||||||||
Preferred stock, redemption price (in dollars per share) | $ / shares | $ 1,120 | ||||||||
Conversion price of preferred stock into common stock (in dollars per share) | $ / shares | $ 1,120 | ||||||||
Preferred Class A | Pacific Oak Residential Trust, Inc. | Forecast | |||||||||
Class of Stock [Line Items] | |||||||||
Issuance of common stock (in dollars per share) | $ / shares | $ 1,120 | ||||||||
Preferred Class A | Pacific Oak Residential Trust, Inc. | If All Shares are Not Redeemed | |||||||||
Class of Stock [Line Items] | |||||||||
Dividend rate, percentage | 12.00% | ||||||||
Preferred Class B | Pacific Oak Residential Trust, Inc. | |||||||||
Class of Stock [Line Items] | |||||||||
Issuance of common stock (in shares) | shares | 125 | ||||||||
Issuance of common stock (in dollars per share) | $ / shares | $ 1,000 | ||||||||
Issuance of common stock | $ | $ 0.1 | ||||||||
Dividend rate, percentage | 12.50% | ||||||||
Preferred Class B | Pacific Oak Residential Trust, Inc. | Forecast | |||||||||
Class of Stock [Line Items] | |||||||||
Issuance of common stock (in dollars per share) | $ / shares | $ 1,000 |
PORT MEZZANINE EQUITY - Schedul
PORT MEZZANINE EQUITY - Schedule (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Roll Forward] | ||||
Balance | $ 482,059 | $ 519,712 | $ 519,712 | |
Balance | $ 471,986 | $ 525,581 | $ 482,059 | $ 519,712 |
Preferred Stock | Series A Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Issuance of common stock (in shares) | 15,000 | 15,000 | 15,000 | 15,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Roll Forward] | ||||
Balance | $ 15,134 | $ 15,134 | $ 15,134 | |
Dividends Available Upon Redemption | 191 | 225 | ||
Dividends Paid | (191) | (225) | ||
Balance | $ 15,134 | $ 15,134 | $ 15,134 | $ 15,134 |
Preferred Stock | Series B Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Issuance of common stock (in shares) | 125 | 125 | 125 | 125 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Roll Forward] | ||||
Balance | $ 99 | $ 99 | $ 99 | |
Dividends Available Upon Redemption | 0 | 0 | ||
Dividends Paid | 0 | 0 | ||
Balance | $ 99 | $ 99 | $ 99 | $ 99 |
PORT MEZZANINE EQUITY - Redeema
PORT MEZZANINE EQUITY - Redeemable Non-controlling Interest Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Roll Forward] | ||
Adjustment to redemption value of mezzanine equity redeemable noncontrolling interest | $ 2,231 | |
Subsidiaries | Battery Point Trust Inc. | BPT Holdings, LLC | ||
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Roll Forward] | ||
Beginning balance | 2,822 | $ 2,968 |
Net loss attributable to redeemable noncontrolling interest | (47) | (32) |
Ending balance | $ 5,006 | $ 2,936 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)property | Mar. 31, 2021USD ($) | |
Loss Contingencies [Line Items] | ||
Remaining lease term | 91 years 9 months 18 days | |
Encore Hospitality, LLC | Q and C Hotel | ||
Loss Contingencies [Line Items] | ||
Fees incurred to management agreement | $ 200 | $ 200 |
Term agreement, extension period | 5 years | |
Base fee as percentage of gross revenue | 4.00% | |
Marriott International | Q and C Hotel | ||
Loss Contingencies [Line Items] | ||
Brand services fee as percent of total room revenue | 2.00% | |
Management agreement, fees accrued | $ 100 | 100 |
Brand services fee as percent of total room revenue, after three years | 5.00% | |
Monthly marketing fund contribution fees as percent of gross room sales | 1.50% | |
Doubletree Management LLC | Springmaid Beach Resort | ||
Loss Contingencies [Line Items] | ||
Base fee as percentage of total operating revenue in year one | 2.50% | |
Base fee as percentage of total operating revenue in year wo | 2.75% | |
Base fee as percentage of total operating revenue, thereafter | 3.00% | |
Management fee as percent of any campground revenue | 2.00% | |
Incentive fee as percent of operating cash flow | 15.00% | |
Percent of total investments | 12.00% | |
Brand services fee as percent of total room revenue | 4.00% | |
Fees incurred to management agreement | $ 100 | $ 100 |
Hotel | ||
Loss Contingencies [Line Items] | ||
Number of real estate properties acquired | property | 2 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Right-of-use asset (included in real estate held for investment, net) | $ 8,074 | |
Lease obligation (included in other liabilities) | $ 9,381 | |
Remaining lease term | 91 years 9 months 18 days | |
Discount rate | 4.80% | |
Interest on lease obligation | $ 111 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Real estate held for investment, net (Note 3) | Real estate held for investment, net (Note 3) |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Future Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
April 1, 2022 through December 31, 2022 | $ 270 |
2023 | 360 |
2024 | 360 |
2025 | 393 |
2026 | 396 |
Thereafter | 52,167 |
Total expected minimum lease obligations | 53,946 |
Less: Amount representing interest | (44,565) |
Present value of net minimum lease payments | $ 9,381 |
SUBSEQUENT EVENTS - Georgia 400
SUBSEQUENT EVENTS - Georgia 400 Mortgage Loan Deposit (Details) - Subsequent Event $ in Millions | Apr. 04, 2022USD ($) |
Subsequent Event [Line Items] | |
Out of compliance, deposits paid | $ 20.4 |
Debt service coverage requirement requirement period | 180 days |
SUBSEQUENT EVENTS - Series B De
SUBSEQUENT EVENTS - Series B Debentures (Details) - Bonds Payable - Series B Debentures - Public Offering ₪ in Millions, $ in Millions | May 02, 2022ILS (₪) | May 02, 2022USD ($) | Nov. 01, 2021ILS (₪) | Nov. 01, 2021USD ($) |
Subsequent Event [Line Items] | ||||
Proceeds from issuance of debt | ₪ 522.4 | $ 166.8 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Proceeds from issuance of debt | ₪ 320.4 | $ 95.3 | ||
Redemption price, percentage | 96.00% | 96.00% |