Key facts
- Pacific Oak Strategic Opportunity REIT appointed Bradley Scher as chairman, director, president, and CEO.
- The REIT's entire board and CEO resigned earlier this month.
- The company has $512.8M in debt obligations due within a year.
- A debt arrangement restructured outstanding bonds to a single balloon maturity of June 30, 2028.
- Chief Financial Officer Brian Ragsdale's contract will not be renewed.
Pacific Oak Strategic Opportunity REIT is undergoing a significant leadership transition as it prepares to wind down its operations. The company's entire board of directors and CEO resigned earlier this month, paving the way for restructuring specialist Bradley Scher to assume key leadership positions, including chairman, director, president, and CEO. Scher, founder of Ocean Ridge Capital Advisors, has extensive experience in managing financially challenged companies and has served in various chief restructuring roles.
The move follows recommendations from the REIT's independent directors in January to wind down operations and the termination of its advisory agreement with Pacific Oak Capital Advisors. The REIT had previously hired Robert A. Stanger & Co. to explore strategic alternatives due to a difficult financial situation. In a Securities and Exchange Commission filing at the end of the third quarter of 2025, Pacific Oak disclosed $512.8 million in debt obligations coming due within a year, raising substantial doubt about its ability to continue as a going concern.
Earlier this month, the REIT reached a debt arrangement with its Israeli bondholders, restructuring outstanding bonds to a single balloon maturity of June 30, 2028, and establishing a structured asset-disposal timeline. Board members Laurent Degryse, Keith Hall, Peter McMillan III, and William Petak resigned on June 15. Board Member Kenneth Yee initially appointed Scher but then resigned on Thursday. Keith Hall had also served as the REIT's CEO. Additionally, Chief Financial Officer Brian Ragsdale was informed that his contract, set to end on August 11, would not be renewed. Ocean Ridge Capital Advisors will be paid $5,000 per month for Scher's services as president and CEO, and $7,500 per month for his roles as chairman and director.