# EDGAR Filing Document

**Accession Number:** 0001452936
**File Stem:** 0001452936-23-000004
**Filing Date:** 2023-2
**Character Count:** 10471
**Document Hash:** 54dbf7140534eba303c760149582cd66
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001452936-23-000004.hdr.sgml**: 20230224

**ACCESSION NUMBER**: 0001452936-23-000004

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20230222

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230224

**DATE AS OF CHANGE**: 20230224

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Pacific Oak Strategic Opportunity REIT, Inc.
- **CENTRAL INDEX KEY:** 0001452936
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **IRS NUMBER:** 263842535
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-54382
- **FILM NUMBER:** 23665711

**BUSINESS ADDRESS:**
- **STREET 1:** 11766 WILSHIRE BLVD.
- **STREET 2:** SUITE 1670
- **CITY:** LOS ANGELES
- **STATE:** CA
- **ZIP:** 90025
- **BUSINESS PHONE:** 949-417-6500

**MAIL ADDRESS:**
- **STREET 1:** 11766 WILSHIRE BLVD.
- **STREET 2:** SUITE 1670
- **CITY:** LOS ANGELES
- **STATE:** CA
- **ZIP:** 90025

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** KBS Strategic Opportunity REIT, Inc.
- **DATE OF NAME CHANGE:** 20081230

?xml version="1.0" ? pacoaksor-20230222

    

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

**__________________**

**FORM 8-K**

**__________________**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of**

**The Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): February 22, 2023

**PACIFIC OAK STRATEGIC OPPORTUNITY REIT, INC.**

(Exact name of registrant specified in its charter)

**______________________________________________________**

---

| | | |
|:---|:---|:---|
| **Maryland** | **000-54382** | **26-3842535** |
| (State or other jurisdiction of<br>incorporation or organization) | (Commission File Number) | (IRS Employer<br>Identification No.) |

---

**11766 Wilshire Blvd., Suite 1670**

**Los Angeles, California 90025**

(Address of principal executive offices)

Registrant's telephone number, including area code: **(424) 208-8100**

Not Applicable

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

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

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

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

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

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

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

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

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

Emerging growth company ☐

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

    

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**ITEM 8.01 OTHER EVENTS.**

**Mini-Tender Recommendation**

On February 22, 2023, Pacific Oak Strategic Opportunity REIT, Inc. (the "Company") approved recommending to its stockholders that they reject a mini-tender offer to be made by Comrit Investments 1, Limited Partnership for up to 755,287 shares of the Company's common stock, which is approximately 0.7% of the outstanding shares. The Company anticipates commencing distribution to its stockholders of the response containing this recommendation, appearing as Exhibit 99.1, on or about February 28, 2023.

**ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS**

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| | |
|:---|:---|
| **Ex.** | **Description** |
| 99.1 | <u>[Pacific Oak Strategic Opportunity REIT, Inc. Response to Mini-Tender Offer](posorcomritmini-tenderresp.htm)</u> |

---

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**SIGNATURES**

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

---

| | | |
|:---|:---|:---|
| | **PACIFIC OAK STRATEGIC OPPORTUNITY REIT, INC.** | **PACIFIC OAK STRATEGIC OPPORTUNITY REIT, INC.** |
| Dated: February 24, 2023 | BY: | /s/ Michael A. Bender |
| | | **Michael A. Bender** |
| | | *Chief Financial Officer, Treasurer and Secretary* |

---

## Exhibit 99.1

**<u>Exhibit 99.1</u>**

![image_1a.jpg](image_1a.jpg)

February 24, 2023

**Re: Tender offer by a third party for Pacific Oak Strategic Opportunity REIT, Inc. shares**

Dear Stockholder:

You may soon receive, or may already have received, correspondence from Comrit Investments 1, Limited Partnership (the "Bidder") and/or its affiliates relating to a tender offer by the Bidder to purchase your shares ("Shares") of Pacific Oak Strategic Opportunity REIT, Inc. (the "REIT"). The Bidder has informed us that its offer price will be $6.62 per share (the "Offer Price"). **We believe the Offer Price is substantially below the value of the Shares and recommend against selling your Shares at that price.**

To decline the Bidder's tender offer, simply ignore it. You do not need to respond to anything.

In arriving at our recommendation against selling your Shares to the Bidder, we considered the following:

*Estimated Value of Shares*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On December 2, 2022, the REIT's board of directors approved an updated estimated value per share (the "EVPS") of the REIT's common stock of $10.50. For a full description of the methodologies and assumptions used to value the REIT's assets and liabilities in connection with the calculation of the EVPS, see the REIT's Current Report on Form 8-K filed on December 8, 2022, which can be found in the "Investor Information" section of the REIT's website, *www.sorinvinfo.com*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Tendering stockholders whose shares are accepted for payment will lose the opportunity to participate in any potential future upside and future growth of the REIT with respect to such shares and will lose the right to receive any future distributions or dividends that we may declare and pay.

*Liquidity Situation* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As of December 31, 2022, we had unfulfilled requests to redeem 14,738,800 Shares due to the share redemption program (the "SRP") funding limitations. During the year ended December 31, 2022, no funding was made available for the SRP, excluding funding reserved for redemptions in connection with a stockholder's death, qualifying disability or "determination of incompetence" ("DDI"). All DDI redemption requests in 2021 and 2022 totaling $10.2 million were satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If future redemption requests exceed the amount of funding available under the SRP and any additional funding made available under one or more self-tender offers, the number of unfulfilled redemption or repurchase requests will increase over time. As of the date of this letter, we had an aggregate $2.6 million available under the SRP for redemptions in 2023, all of which is reserved exclusively for DDI redemptions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• However, we continue to monitor the number of redemption requests and funding levels for the SRP. As we did in prior instances when our board of directors authorized additional funds for the redemption of shares, we will continue to consider the liquidity available to stockholders going forward, balanced with other long-term interests of the stockholders and the REIT. We are continuing to evaluate possible strategic alternatives to provide additional liquidity to stockholders, including but not limited to listing the REIT's shares on a public US or other stock exchange, negotiating, or procuring the sale of certain properties in the REIT's portfolio, and other strategies.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In 2022, the REIT closed on assets sales resulting in approximately $148.9 million in net proceeds. From these proceeds, the REIT's board of directors authorized $8 million in funding for the SRP during the year ended December 31, 2022, all of which is reserved exclusively for DDI redemptions. Most of the remainder was used to reduce the REIT's obligations and to invest in new opportunities and capital projects. The REIT intends to continue to use the net proceeds from such sales to provide liquidity for stockholders who desire it, new opportunistic investments, capital projects and the reduction of existing obligations, as well as other general corporate purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We believe that the Bidder's offer is meant to take advantage of the illiquidity of our Shares by buying your Shares at a price significantly below their fair value in order to make a significant profit.

Please be aware that the Bidder is in no way affiliated with the REIT, our external advisor, Pacific Oak Capital Advisors, LLC, or our dealer manager, Pacific Oak Capital Markets, LLC.

We urge you to consult your financial advisor and exercise caution with respect to this and other mini-tender offers. Mini-tender offers are offers to purchase less than 5% of a company's outstanding shares. The SEC has cautioned investors about offers of this nature. Additional information about mini-tender offers is available on the SEC's website at *www.sec.gov/investor/pubs/minitend.htm*.

In order to avoid the costs of additional mailings, we may post our response to future mini-tender offers at *www.sorinvinfo.com*. If you have any questions related to the tender offer, please contact Pacific Oak Capital Markets, LLC at 1-866-722-6257.

We thank you for your investment in the REIT.

Sincerely,

![image_0a.jpg](image_0a.jpg)

Peter McMillan III

*President and Chairman of the Board*

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*Forward-Looking Statements*

<br>