Pacific Oak Strategic Opportunity REIT Sells SoCal Office Tower for $150.5 Million

Pacific Oak Strategic Opportunity REIT Inc., a publicly registered non-traded real estate investment trust, has sold City Tower, a Class A office tower in Orange, California.

Pacific Oak Strategic Opportunity REIT Inc., a publicly registered non-traded real estate investment trust, has sold City Tower, a Class A office tower in Orange, California, to New York-based Opal Holdings for $150.5 million.

The company claims that the transaction “sets the high-water mark for office sales in Orange County year-to-date.”

City Tower was originally purchased by the REIT’s predecessor, KBS Strategic Opportunity REIT, for $147.3 million in March 2018.

Located at 333 City Boulevard, the 20-story 435,000-square-foot LEED Gold certified building was 90 percent leased at the time of sale to tenants including UC Irvine Medical Center, Enterprise Rent-A-Car, Sedgwick and Spaces.

Developed in 1988, the Class A building recently underwent a $3 million renovation that included upgrades to the lobby, fitness center, conference center and building entryway.

“We increased occupancy by almost 15 percent over the past three years and are proud of the improvements and value we created during our ownership,” said Michael Potter, senior vice president of Pacific Oak Capital Advisors. “We think our ability to close deals in a challenging environment highlights that there is always a market for well-located, high-quality assets with strong tenancy.”

Situated in Central Orange County, City Tower is the county’s fourth tallest building, providing visibility from three major freeways, and is within proximity to Angel Stadium, Honda Center and Disneyland Resort and Theme Park.

Pacific Oak Strategic Opportunity REIT invests in opportunistic real estate and other real estate-related investments and manages a portfolio valued in excess of $2 billion comprised primarily of office, apartment, single-family rental and hotel assets.

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