Pacific Oak Strategic Opportunity REIT Inc., a publicly registered non-traded real estate investment trust formerly known as KBS Strategic Opportunity REIT, has acquired Battery Point Trust Inc., a private real estate investment trust that owns 559 single-family rental homes throughout the Midwestern and Southeastern United States.
Following this transaction, Pacific Oak Strategic Opportunity REIT now owns 1,749 single-family rental homes nationwide.
The REIT acquired 1 million outstanding shares of Battery Point’s common stock from BPT Holdings, a wholly owned subsidiary of Pacific Oak Capital Advisors LLC and the advisor of Pacific Oak Strategic Opportunity REIT.
In exchange, BPT Holdings received 510,816 common equity units in PORT OP, approximately 4.5 percent of the outstanding common equity units. The value of the interests exchanged was estimated by the participants at approximately $3 million.
The residential assets are held by the REIT through its subsidiary, PORT OP LP (formerly known as Reven Housing REIT OP L.P.).
In November 2019, Pacific Oak Strategic Opportunity REIT merged with Reven Housing REIT Inc. (NASDAQ: RVEN), a publicly traded REIT, for approximately $56.6 million in cash, or $5.13 per share of Reven common stock. At the closing of the merger, Reven became an indirect, wholly-owned subsidiary of Pacific Oak Strategic Opportunity REIT and changed its name to Pacific Oak Residential Trust Inc.
The advisor waived any and all acquisition fees from this transaction which would otherwise be due.
Earlier this year, Pacific Oak Strategic Opportunity REIT announced plans to merge with affiliated non-traded REIT Pacific Oak Opportunity REIT II in a stock-for-stock transaction, creating a combined company with approximately $2.6 billion in gross real estate and real estate-related assets. The transaction is expected to close in the second half of 2020.
Pacific Oak Strategic Opportunity REIT launched its initial public offering in November 2009 and has raised approximately $638 million in investor equity from the offering and its distribution reimbursement plan, as of the third quarter 2019.