Troubled investor incurs 54% loss on Crown Pointe complex
Pacific Oak Strategic Opportunity REIT has finalized the sale of its Crown Pointe office complex in Atlanta, a move that eliminates $54.7 million in mortgage debt as the company confronts mounting financial pressure.
According to CoStar data, Alkamy Capital, based in Lauderdale Lakes, Florida, purchased the property for $38 million. Pacific Oak originally acquired Crown Pointe in 2017 for $83.4 million, resulting in a loss of roughly 54%.
A recent SEC filing indicates that the sale generated no net cash for Pacific Oak, though it did relieve the company of a mortgage that exceeded the sale price by $16.7 million.
In April, Pacific Oak and its lender entered a loan forbearance agreement that extended the repayment deadline to December. The lender ultimately directed the sale process, according to the filing.
The REIT did not respond to CoStar News’ request for comment.
The Crown Pointe transaction represents a significant step in Pacific Oak’s broader effort to reduce its $512.8 million debt load, which comes due in 2026. Earlier this year, the firm began marketing assets in an attempt to manage upcoming loan maturities.
Pacific Oak, headquartered in Costa Mesa, California, remains in serious financial distress. Auditors previously expressed substantial doubt about the company’s ability to continue operating. In October, the firm hired investment bank Robert A. Stanger & Co. to evaluate strategic alternatives.
Crown Pointe includes 223,335 square feet of available space, roughly 45% of its net rentable area.
The complex is located in Atlanta’s Central Perimeter, one of the region’s major office hubs. Recent improvements to the I-285 and State Route 400 interchange have enhanced access to the area, according to CoStar analysis.
While office vacancies in Central Perimeter have risen since 2022, they have stabilized over the past year, with recent leasing activity hinting at shifting market momentum.
For the record
Newmark marketed the property, with Vice Chairman Jay O’Meara leading the listing.
Source: Original reporting by Mark Heschmeyer, CoStar News.
